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/raid1/www/Hosts/bankrupt/TCRAP_Public/030220.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 Thursday, February 20, 2003, Vol. 6, No. 36 Headlines A U S T R A L I A ANACONDA NICKEL: Glencore Manages to Retain Majority Control BRAMBLES INDUSTRIES: Subject of ASIC Preliminary Probe BRAMBLES INDUSTRIES: Issues Guide on Treatment of Comparatives BRAMBLES INDUSTRIES: Posts Notice of Major Interests in Shares COLES MYER: Analysts Doubt Full-year Forecast Will Hold GOODMAN FIELDER: Confirms Ongoing Discussions with Takers GOODMAN FIELDER: Amends Dividend Dates MAYNE GROUP: U.S. FDA Lifts Warning, Restores Acceptable Status MIM HOLDINGS: Records Huge Loss in Latest Half-year Report TASSAL LTD.: Gobbles Up Rival Despite Woes C H I N A & H O N G K O N G FRIENDWAY LIMITED: Winding up Hearing Set for March 5 KAI TAK: High Court Schedules Winding up Hearing on March 12 SENCON INVESTMENT: Winding Up Sought; Hearing Set for March 19 TOPFAIR ENGINEERING: Hearing on Winding Up Petition Set I N D O N E S I A ASTRA INTERNATIONAL: Wants to Seal Toyota Deal by Month's End BANK DANAMON: To Get Rid of Government Bonds in Two Years UNITED TRACTORS: Approval of Debt Plan Likely to be Delayed J A P A N TOSHIBA CORPORATION: Enters Agreement With Fujitsu and NEC GOLF PROMOTION: Golf Course Operator Goes Under RESONA HOLDINGS: Unit Sells Fixed Assets SEGA CORPORATION: Revises Financial Results Ending March 2003 SEIBU DEPARTMENT: Seeking Y10B From Four Firms SHOWA DENKO: Returns to Y13.02B Profit STANDARD SHOE: Files For Civil Rehabilitation Proceedings K O R E A ASIANA AIRLINES: Selling Catering Division To LSG Sky CHOHUNG BANK: Shinhan Accounting to Undertake Due Diligence CHOHUNG BANK: Government May Rework Bank Sale CHOHUNG BANK: Union Calls For Independent Survival DAEWOO MOTOR: GM Daewoo May Speed Up Bupyong Plant Takeover KIA STEEL: Sale Fails on Price Dispute M A L A Y S I A BERJAYA SPORTS: Wholly Owned Unit Buys 100,000 More ICULS BERJAYA SPORTS: B-Land Comes Through with ICULS Redemption IDRIS HYDRAULIC: Securities Commission OKs Issue Variation L&M CORPORATION: Unit Ordered to Pay Outstanding Debt NYLEX BHD: Ordered to Pass New SC-Compliant Restructuring Plan P H I L I P P I N E S BAYAN TELECOM: Finalizing Restructuring Deal With Creditors METRO PACIFIC: Clarifies Agreement With Ayala and Greenfield NATIONAL BANK: Remittance Business in Tokyo Operating Normally PHILIPPINE LONG: SEC Issues Pre-Effective Clearance VICTORIAS MILLING: Set to Pay Creditors VICTORIAS MILLING: Appoints New Directors S I N G A P O R E CHARTERED SEMICONDUCTOR: Reposting of Schedule 13G Filing CREATIVE TECHNOLOGY: Posts Changes in Shareholder's Interest FLEXTECH HOLDINGS: Dissolves Dormant Unit ISOFTEL LTD: Posts Changes in Shareholder's Interest KOH BROTHERS: Unveils Disposal of Units LEE KIM: Dormant Unit Enters Liquidation - - - - - - - - - ================= A U S T R A L I A ================= ANACONDA NICKEL: Glencore Manages to Retain Majority Control ------------------------------------------------------------ American vulture fund, MatlinPatterson, has failed to take control of Anaconda Nickel, but ended up with 35% of the company, Asia Pulse said yesterday. According to the news agency, Glencore International, Anaconda's majority shareholder managed to retain its position after other shareholders exercised their entitlements in the rights issue underwritten by Glencore. CEO Peter Johnston saw this development as a vote of confidence for the company. Asia Pulse said the vulture fund secured 41.7 percent of all Anaconda's rights and 34.24 percent of its shares. Glencore, on the other hand, raised its holdings to more than 40 percent. Canada's Sherritt International will maintain its 8.8 percent stake if it exercises its full entitlements in Anaconda's vital 14-for-1 rights issue, the report said. "We welcome MatlinPatterson as an investor, it is a good outcome," Mr Johnston said. MatlinPatterson's hostile bid won the support of Anglo American, which tipped in its 24 percent stake, and Andrew Forrest, Anaconda's former chief executive whose family interests held around 4.5 percent, the report said. As underwriter to the issue, Glencore could have lifted its stake in Anaconda to around 95 percent had other shareholders chosen not to participate in the issue. Proceeds of the transaction will be used in part to repay Anaconda's US bondholders on February 28. "We'll pay off our bondholders now, so we will emerge relatively debt free, we'll have a clean balance sheet, there is a strong nickel market and we'll get back to being able to focus on production and costs and running a sound nickel business," Mr. Johnston told Asia Pulse. Anaconda holds 60 percent of the Murrin Murrin nickel operation in Western Australia. Glencore holds the remaining 40 percent. BRAMBLES INDUSTRIES: Subject of ASIC Preliminary Probe ------------------------------------------------------ We wish to advise that, following our 21 November 2002 trading update, the Australian Securities & Investments Commission is making preliminary inquiries in relation to comments concerning Brambles' financial performance during the period 28 August - 28 November 2002. While no allegations have been made and no new matters have been raised, we consider it appropriate to keep the market informed. Brambles will be providing ASIC with every assistance in its enquiries. C A van der Laan de Vries COMPANY SECRETARY FOR FURTHER INFORMATION, CONTACT: Sydney Media: Jeannette McLoughlin, Group General Manager, Corporate Communications +61 (0) 9256 5255 Mobile 0401 990 425 Investor: Edna Carew, Group Manager Communications +61 (0) 2 9256 5204 London Investor: Sue Scholes, Head of Investor Relations +44 (0) 20 7659 6012 The Brambles Industries Group is globally headquartered in Sydney, Australia. BRAMBLES INDUSTRIES: Issues Guide on Treatment of Comparatives -------------------------------------------------------------- Brambles will be releasing its interim results for the 6 months to December 2002 at the end of the Sydney trading day on 26th February 2003. In order to assist understanding of the underlying business performance, Brambles press release and presentations to analysts will be made on the basis described below and comparative data for the 6 months to December 2001 should be adjusted (Schedule 1). The changes are in presentation only and do not affect the profits of the Group reported last year. (a) CHEP - ANALYSIS OF PROFITABILITY BY GEOGRAPHY An analysis of CHEP's profit by region will be included in presentations to analysts and will be available on our website. Schedule 1 attached reflects the following in respect of the prior half year: a. Geographic breakdown b. An allocation of the ongoing accounting harmonisation c. An allocation of the one off element of the accounting harmonisation For ongoing measurement, the profit after ongoing harmonisation and described as EBITA on Schedule 1 is the appropriate comparison of performance. The context for the changes in presentation is that in February 2002, Brambles Industries announced a harmonisation of accounting policies within CHEP, affecting pallet depreciation and loss provisioning. At the same time, there was a write-down of pallets in the non participating distributor (NPD) channel in the USA. Full details of these changes can be found in the Annual Review for the year to June 2002, available on our website http://www.brambles.com.At the time of this announcement, CHEP's EBITA (profit before interest, tax and goodwill amortisation) was not split out by geography and the effect of the accounting harmonisation on specific regions was not identified. Additionally the full year results to June 30th 2002 included the CHEP harmonisation in operating activities rather than "operating exceptional items" for UK reporting purposes. The half year results to December 31st 2001 now reflect the same treatment. The post on-going harmonisation figures (EBITA in Schedule 1) will be used as prior year comparatives to explain trading movements in the press release and analyst presentations when results for the current financial year are released. For reference purposes only, CHEP EBIT by region for the prior year is included in Schedule 3. (b) TREATMENT OF BUSINESSES SINCE DIVESTED As in previous periods and in line with accounting standards, results for those businesses which have since been divested are shown as 'Discontinued'. Schedule 2 shows the effect of the reallocation on the prior year segmental analysis. (c) USE OF CONSTANT CURRENCY COMPARATORS The press release and presentations to analysts will measure financial performance in constant currency. The basis for the calculation of the constant currency will be the average exchange rates for the six months to December 31st 2001, which will be applied to the current period foreign currency results. Craig van der Laan de Vries COMPANY SECRETARY For further information, contact: SYDNEY Investor Richard Manson +61 (0) 2 9256 5234 Edna Carew +61 (0) 2 9256 5204 Media Jeannette McLoughlin +61 (0) 2 9256 5255 LONDON Investor Sue Scholes +44 (0) 20 7659 6012 Media Richard Mountain, Financial Dynamics +44 (0) 20 7269 7291 BRAMBLES INDUSTRIES: Posts Notice of Major Interests in Shares -------------------------------------------------------------- (1) NAME OF COMPANY Brambles Industries plc (2) NAME OF SHAREHOLDER HAVING A MAJOR INTEREST Franklin Resources, Inc and its affiliates (3) Please state whether notification indicates that it is in respect of holding of the shareholder named in 2 above or in respect of a non-beneficial interest or in the case of an individual holder if it is a holding of that person's spouse or children under the age of 18 On behalf of clients of Franklin Resources, Inc and its affiliates (4) Name of the registered holder(s) and, if more than one holder, the number of shares held by each of them See list appended (5) Number of shares/amount of stock acquired Not advised (6) Percentage of issued class Not advised (7) Number of shares/amount of stock disposed N/A (8) Percentage of issued class N/A (9) Class of security Ordinary shares of 5p each (10) Date of transaction Not advised (11) Date company informed 14 February 2003 (12) Total holding following this notification 58,455,230 (13) Total percentage holding of issued class following this notification 8.08% (14) Any additional information - (15) Name of contact and telephone number for queries Sandra Walters 020 7659 6039 (16) Name of authorised company official responsible for making this notification Sandra Walters, ASSISTANT COMPANY SECRETARY Date of notification 17 February 2003 DETAILS OF REGISTERED HOLDERS Bank of New York, London 243,556 0.03% Chase Nominees Ltd 48,340,021 6.68% Citibank Nominees Ltd 276,871 0.04% Clydesdale Bank PLC, Glasgow 2,110,322 0.29% Deutsche Bank AG, London 962,610 0.13% Northern Trust Company 1,287,809 0.18% Royal Trust Corp of Canada, London 784,587 0.11% State Street Nominees Limited 4,449,454 0.62% Total 58,455,230 8.08% COLES MYER: Analysts Doubt Full-year Forecast Will Hold ------------------------------------------------------- UBS Warburg has cut its forecast for Coles Myer's full year net profit to AU$426.9 million from AU$431.8 million, after the retailing giant reported a slower growth rate in the second quarter, Asia Pulse said yesterday. According to the brokerage house, the company was too slow to react to rival Woolworths' petrol strategy. "Even if Coles Myer announces a response soon it is difficult to see a bottom line benefit given there may be a reactive price response by Woolworths, increasing its discount offer," Nick Wade of UBS Warburg told Asia Pulse. Last Friday, Coles Myer reported that second quarter sales grew at a slower rate of 4.1 percent to AU$7.5 billion (US$4.43 billion), below analysts forecasts. As a result, shares of the company slipped to five-month lows. According to the report, management blames the below expected results on the pulling power of discount fuel offered by rival Woolworths Ltd. Retail analyst at Tolhurst Noall, Warren Jeffries, agrees. He said he is sticking to his earnings forecast in the upper range of Coles Myer's forecast, at least until he sees the half year results next month. "They have said everything is on track to achieve what they forecast. They say margins are holding together so we will have to wait and see," Mr. Jeffries said. He said Coles Myer attributed a lot of that second quarter sales loss to heavy promotion by Woolworths of their petrol offer. Meanwhile, Coles Myer food and liquor chief Alan Williams said the division was on track to deliver double-digit profit growth for the first half after sales grew 5.3 percent in the half and 3.4 per cent in the second quarter. "This profit is sustainable. Earnings growth has been underpinned by very disciplined approach to the fundamentals," Mr. Williams told Asia Pulse. FW Holst analyst David Spry believes Coles Myer's full year net profit will come in at the lower end of the guidance range: "It looks a touch wobbly and I will probably get around to pruning it a little but not significantly below the forecast range." "The market is saying there are likely to be downgrades and there are some already occurring. Coles Myer is at a critical phase, they really need to make sure food and liquor doesn't decline any further because it constitutes the major portion of earnings," Mr. Spry told Asia Pulse in an interview. GOODMAN FIELDER: Confirms Ongoing Discussions with Takers --------------------------------------------------------- In response to media speculation, Goodman Fielder confirmed Tuesday that it continues to explore various alternatives to enhance shareholder value. These alternatives include ongoing discussions in relation to possible transactions. If any material outcome results from these discussions or if all discussions terminate, then Goodman Fielder will advise its shareholders via an announcement to the Australian Stock Exchange. Goodman Fielder is a leading retail branded food company in Australasia and the Pacific with icon brands including Uncle Tobys, Meadow Lea, Mighty Soft, White Wings, Quality Bakers, Pampas, Praise, Helga's, Flame and Bluebird. Goodman Fielder is the subject of an unsolicited takeover bid by Burns Philp. FURTHER INFORMATION: INVESTOR RELATIONS Lina Melero Nichele phone (61) 2 8874 6095, mobile (61) 401 700 000 MEDIA RELATIONS Stephen Ellaway phone (61) 2 8874 6064, mobile (61) 401 700 151 RETAIL SHAREHOLDERS Retail shareholders information line 1800 242 200 or for callers from outside Australia +61 2 9207 3697 (Monday to Friday, 8am to 6pm AEST). GOODMAN FIELDER: Amends Dividend Dates -------------------------------------- The Company advises that the Record date for the Special Dividend announced by Goodman Fielder on 19 February 2003 has been amended, at the request of the Australian Stock Exchange. The new Record date is now Friday 7 March 2003. The payment date remains at 11 April 2003. I M Gilmour COMPANY SECRETARY MAYNE GROUP: U.S. FDA Lifts Warning, Restores Acceptable Status --------------------------------------------------------------- Mayne Group Limited advised Monday that it had received formal notification from the United States Food and Drug Administration (FDA) confirming that the warning letter received in November 2002 has been lifted, now placing the Mulgrave facility in 'Acceptable' status. This follows a full investigation and report by Mayne in regard to the FDA concerns, culminating in discussions in Washington with the FDA. These discussions emphasized Mayne's commitment to sustainable compliance with current Good Manufacturing Practice, including the establishment of a global quality unit. The lifting of the status allows the company to continue with programs for new product approvals in the US market. Mayne's Group Managing Director and Chief Executive Officer, Stuart James, said that he was pleased with the company's ability to promptly address the issues raised in the warning letter. "Our dialogue with the FDA was very productive and in a little over two months we have been able to resolve this matter, allowing our business to progress with minimum disruption," Mr James said. Mayne has businesses in pharmaceuticals (the manufacture of oral and injectable pharmaceuticals for distribution to more than 50 countries), health-related consumer products, health services (pathology, diagnostic imaging, medical centres and pharmacy services) and hospitals. Mayne, which is listed on the Australian Stock Exchange, has a presence in 50 countries and more than 26,000 employees. Media inquiries: Investor inquiries: Rob Tassie Cameron Fuller Ph: 03 9868 0886 Ph: 03 9868 0968 Mb: 0411 126 455 Mb: 0417 338 953 MIM HOLDINGS: Records Huge Loss in Latest Half-year Report ---------------------------------------------------------- Brisbane-based mining house, MIM Holdings Ltd., has turned its year earlier net profit of AU$21 million for the six months to December into a gaping hole on its income statement for the same period in 2002. According to Asia Pulse, the company absorbed a staggering AU$204.8 million net loss in the six months to December 31, 2002. The report did not say what triggered the huge loss. Despite this, the company is expecting the current half to be better. "If commodity prices and exchange rates remain broadly in line with current levels, the June half 2003 financial results for continuing operations is expected to be significantly better than that of the December half 2002," MIM said in a statement. "The current half will see a continuation of the strategy of improving operations and pursuing capital efficient growth and diminishing currency hedging and European losses," the statement reads. MIM said the proposal to close the loss making Avonmouth zinc smelter was in the final consultation phase. "Closure of Avonmouth would provide the opportunity to streamline the Northfleet operation where the smelter's by-product lead is currently refined." The company, meanwhile, anticipates increased copper production at Mount Isa in the June half. A copper ISASMELT rebrick is scheduled for the September quarter although preparations have been made should an earlier rebrick be required, MIM said. "In lead-zinc, progressive implementation of a revised min plan at George Fisher will allow production rates at George Fisher to be increased to an annualised rate of 2.2 mt/yr by mid calendar 2003, improving unit costs and consequently financial performance," the company said. At Ravenswood, MIM said the immediate focus was optimising the recently expanded Sasfield pit and ore benefication plant. "At the gold processing plant, the recent expansion to around 5 mt/yr, when combined with the planned acquisition of Haoma's interest in the plant should treble pre expansion capacity available to MIM," the company said. "Ravenswood expects to lift FY2004 gold output to 200,000 ozs, with potential for further expansion." MIM said it has a pipeline of potential growth projects which would be prioritised on the basis of their investment returns and scheduled to ensure acceptable shareholder returns. "At the Newlands coal mine, work will continue on the new Northern Underground and acquisition of additional dragline capacity to increase open cut production while the greenfield Rolleston thermal coal project is approaching the final approvals stage," MIM said. "Mount Isa operation will continue feasibility work on early development of open pit mining to lift copper production." TASSAL LTD.: Gobbles Up Rival Despite Woes ------------------------------------------ Tassal Ltd., which is currently under receivership, made some sort of history when it recently acquired smaller rival, Nortas, forming Australia's largest Atlantic salmon producer, Asia Pulse said yesterday. Citing Tassal receiver and manager Mark Ryan, Asia Pulse said this is the first time in Australia that a company placed under receivership has taken over a competitor. Workers, however, could only be happier since this means that their jobs are now more or less secure. "What this does for the future of Tassal is significantly improve security for employees, which I think is paramount here," Mr. Ryan told Asia Pulse. "We have 630 employees working for the Tassal entity now, which is... one of the largest employers in Tasmania." "What this does by putting the two businesses together is create a sustainable business that, on a worldwide scale, is very attractive to international buyers," he added. Producing about 8,000 tonnes of Atlantic salmon and trout a year, the revitalised Tassal is hoping to deliver AU$4 million (US$2.36 million) in profitability within the first few months. Nortas principal Richard Doedens, in a separate interview, told Asia Pulse the cost efficiency and profitability of Nortas made it an ideal acquisition for Tassal. "The industry has grown up with a lot of little players and those little players have already amalgamated and formed larger groups," he said, adding that he believed the only real future for Nortas was to amalgamate with a larger operator to create a more competitive entity. "Salmon is becoming a very important protein source, therefore around the world very large operators now own salmon farming companies. This new entity formed now is not large on a world scale. It's large for our local scene," Mr. Doedens said. The combined company, which accounts for 65 percent of Tasmania's salmon industry, estimates its annual turnover at AU$100 million (US$59.02 million) with an annual profit of up to AU$11 million (US$6.49 million), Asia Pulse said. Tassal was placed in receivership last June with an annual loss of AU$10 million (US$5.9 million) and debt of AU$33 million (US$19.48 million), the news agency added. ================================ C H I N A & H O N G K O N G ================================ FRIENDWAY LIMITED: Winding up Hearing Set for March 5 ----------------------------------------------------- The High Court of Hong Kong will hear on March 5, 2003 at 9:30 in the morning the petition seeking the winding up of Friendway Limited. Yim Wai Hing of Room 2604, 26/F., Koon Yat House, Choi Wan Estate, Kowloon, Hong Kong filed the petition on January 8, 2003. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office on the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. KAI TAK: High Court Schedules Winding up Hearing on March 12 ------------------------------------------------------------ Kai Tak Palace Co., Limited faces a winding up petition, which the High Court of Hong Kong will hear on March 12, 2003 at 10:00 in the morning. Chan Ying Kau of Room 3424, 34/F., Fook Wo House, Tai Wo Estate, Tai Po, New Territories, Hong Kong filed the petition on January 20, 2003. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office on the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. SENCON INVESTMENT: Winding Up Sought; Hearing Set for March 19 -------------------------------------------------------------- A petition seeking the winding up of Sencon Investment Limited is scheduled for hearing before the High Court of Hong Kong on March 19, 2003 at 9:30 in the morning. Chan Shun Kwong of Room 1911, Tsui Hong House, Tsui Wan Estate, Chai Wan, Hong Kong filed the petition on January 22, 2003. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office on the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. TOPFAIR ENGINEERING: Hearing on Winding Up Petition Set ------------------------------------------------------- The High Court of Hong Kong will hear on March 12, 2003 at 10:00 in the morning the petition seeking the winding up of Topfair Engineering Limited. Tung Kwong of Room 921, 9/F., Leung Wah House, Leung King Estate, Tuen Mun, New Territories, Hong Kong filed the petition on January 17, 2003. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office on the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. ================= I N D O N E S I A ================= ASTRA INTERNATIONAL: Wants to Seal Toyota Deal by Month's End ------------------------------------------------------------- Restructuring Astra International is intent on selling its majority stakes in PT Toyota Astra Motor to its Japanese principal, Toyota Motor Corporation, by the end of the month, says Asia Pulse. Although Astra President Budi Setiadharma admits that there is no significant development in talks with the Japanese carmaker, the company intends to dispose of the stake at all cost so that it can focus more on car distribution, the news agency said. The deal is estimated at US$270 million, but a conclusion to the talks has been delayed due to disagreement over the price. In a separate report citing Finance Director John Slack, AFX- Asia said the company will sign today a memorandum of understanding in relation to the stake sale. Mr. Slack told AFX-Asia that Astra is proposing to sell a 46% stake in the joint venture, retaining just 5%. The divestment is not expected to help the company raise cash for debt repayment. Mr. Slack said the MoU is a non-binding agreement but it will help both sides to speed up the negotiations. "It is an indication that we are seriously discussing the terms of the sale," he said. Unlike the source of Asia Pulse, Mr. Slack said he expects the deal to be concluded in the third quarter. BANK DANAMON: To Get Rid of Government Bonds in Two Years --------------------------------------------------------- Bank Danamon plans to dispose its remaining IDR15.6 trillion government bonds within the next two years, says Asia Pulse, by offering it in the secondary market and through mutual fund scheme. In an interview with Asia Pulse, bank Director Krisna Suparto said part of the bonds will be used in asset to bond swap to acquire credit assets controlled by IBRA, the government rescue vehicle that owns 99% of the bank. The government issued bonds valued at hundreds of trillions of rupiahs since 1999 to recapitalize a number of ailing banks including Bank Danamon in the wake of the monetary crisis in late 1997. In 2000, Bank Danamon still held IDR47.2 trillion in recapitaization bonds, Asia Pulse said. UNITED TRACTORS: Approval of Debt Plan Likely to be Delayed ----------------------------------------------------------- Thomas Aslim, investor relations manager of PT United Tractors, disclosed recently that the company will not be able to complete its debt restructuring by March. In an interview with Asia Pulse, Mr. Thomas cited difficulty in getting the approval of creditors as the major reason for the delay. "Therefore, the process could not be completed in short time. Realistic estimate for the completion will be June," Mr. Thomas told Asia Pulse. Originally management had hoped to thrash out talks on the debt restructuring in March to come at the close of the book year for its Japanese creditors, the news agency said. The company defaulted on the repayment of a US$88 million debt maturing last year prompting it to seek a second debt restructuring. ========= J A P A N ========= TOSHIBA CORPORATION: Enters Agreement With Fujitsu and NEC ---------------------------------------------------------- Fujitsu Microelectronics Europe, NEC Electronics Corporation and Toshiba Corporation announced that they have reached an agreement on common specifications for Pseudo Static Random Access Memory (PSRAM) devices that feature burst mode function enabling fast access operation. Each of the three companies will independently manufacture and market PSRAM products based on the common specifications, which are to be called Common Specifications for Mobile RAM (COSMORAM), with product introduction expected to begin in the first half of fiscal 2003. In September 1998, the three firms promulgated common specifications for stacked multi-chip packages (MCPs) that include both flash memory and SRAM. Then in March 2002, it was announced that the three companies agreed on common specifications for PSRAMs that feature page mode function, forming the basis for a common spec for the page mode PSRAM and stacked MCPs that include the PSRAM. Defining user-interface specifications for high-speed, high-density PSRAMs resolved compatibility problems, thereby allowing customers to efficiently implement the PSRAM devices of all three firms. The trio of companies has now expanded the agreement to include common specifications for a burst mode PSRAM user interface and the stacked MCPs that house the PSRAMs. Burst mode function enables high-performance operation superior to fast page mode, making it ideally suited to respond to the high-speed processing needs of next-generation cell phones and other mobile equipment, such as PDAs. Because the specifications for burst mode PSRAM, much like those adopted for page mode PSRAM, standardize the basic electrical properties, packaging and pin layout, customers will benefit from a uniform design format, eliminating the need to customize designs for each product. This advantage will help shorten the design cycle and dramatically improve design efficiency. In addition, since the three companies are using common specs, they can also act as alternative sources for each other, helping to ensure a stable market supply. The COSMORAM specifications for burst mode PSRAM user interface cover: - Densities - Supply voltage range - Control pin names - Truth table - Partial refresh function (refresh size and corresponding base address assignment) - Burst mode function (burst length and corresponding addressing) - Mode register defaults - Mode-register setting method - Power-on sequence - Pinouts - Packaging Trademark notice All product names and proper names mentioned in this document are trademarks or registered trademarks of their respective firms. Fujitsu Microelectronics Europe http://www.fme.fujitsu.comis a major supplier of semiconductor products to the European and global market. The Company's main business focus is on providing systems solutions to the networking/telecommunications, mobile communications, automotive and multimedia markets. Fujitsu offers a broad range of semiconductor devices, including telecommunications ICs, RF devices, MPEG encoders and decoders, microcontrollers, graphic display controllers and microprocessors, FCRAMs and Flash memory. The Company is also a leader in colour plasma display panels. NEC Electronics Corporation http://www.necel.comis a wholly owned subsidiary of NEC Corporation, one of the world's leading providers of Internet, broadband network and enterprise business solutions. NEC Electronics specialises in semiconductor products encompassing advanced technology solutions for the broadband and communications markets, system solutions for the mobile handsets, PC peripherals, automotive and digital consumer markets, and platform solutions for a wide range of customer applications. NEC Electronics Corporation has 24 subsidiaries worldwide including NEC Electronics America, Inc. and NEC Electronics (Europe) GmbH. Toshiba Corporation http://www.toshiba.co.jpis a leader in information and communications systems, electronic components, consumer products, and power systems. The Company's integration of these wide-ranging capabilities assures its position as a leading Company in semiconductors, displays and other electronic devices. Toshiba has 176,000 employees' worldwide and annual sales of over US$40 billion. The Troubled Company Reporter-Asia Pacific reported that Toshiba in the three months to December 31 had a loss of 84.9 billion yen ($636 million) versus a net income of Y11.1 billion in the year- earlier period. Consolidated sales fell 14 percent to Y1.2 trillion from Y1.39 trillion. GOLF PROMOTION: Golf Course Operator Goes Under ----------------------------------------------- Japan Golf Promotion Inc. filed for court protection from creditors on Tuesday with total liabilities of 360 billion yen, Kyodo News reports. The biggest golf course in Japan, took the legal action together with the state-run Resolution and Collection Corp (RCC), its main creditor, with the Osaka District Court under the fast- track Civil Rehabilitation Law. RCC has some 80 billion yen in claims on Japan Golf Promotion. RESONA HOLDINGS: Unit Sells Fixed Assets ---------------------------------------- Asahi Bank Limited (Asahi Bank, President: Yukio Yanase), one of the banking subsidiaries of Resona Holdings, Inc. (Resona HD) decided to assign the following fixed assets and sold them. Details are announced as follows: 1. Fixed Assets Sold Location: 11-1 Kamiaso 1-chome, Aso-ku, Kawasaki-shi Land: 40,041 square meters Building Total floor space: 1,170.38 square meters Book Value (after revaluation): 10.3 billion yen Transfer Price: 7.0 billion yen Loss on Transfer: 3.5 billion yen Settlement: Entire amount settled by cash * The expense related to the sale is approximately 0.2 billion yen. Acquisition cost of the land is 0.1 billion yen and the book value of the building is 0.1 billion yen, respectively. Total taxable gain on transfer is 6.5 billion yen. 2. Outline of Assignees Name: Sekisui House, Ltd. Address: 1-88, Oyodonaka 1-chome, kita-ku, Osaka Representative: Isami Wada Name: Tokyu Land Corporation Address: 21-2, Dogenzaka 1-chome, Shibuya-ku, Tokyo Representative: Masatake Ueki * To be purchased and owned by the two companies. 3. Date of Assignment: February 17, 2003 4. Reason for the Assignment As part of the reviews of welfare provisions for reducing idle assets, Asahi Bank decided to dispose of the assets specified above. 5. Impact of the Assignment on Forecasted Earnings The loss on transfer will not affect the earnings forecast for the fiscal year ending March 31, 2003, which was announced on February 12, 2003. Resona Holdings Inc. recently requested a capital injection of several billion yen from Credit Agricole SA of France, the Troubled Company Reporter-Asia Pacific reports. Resona, the umbrella group that includes Daiwa Bank and Asahi Bank, aims to boost capital, as it may have to put up larger- than-expected loan-loss reserves under stiffer asset assessment guidelines issued by the Financial Services Agency. SEGA CORPORATION: Revises Financial Results Ending March 2003 ------------------------------------------------------------- Sega Corporation has revised its results forecasts for the year ending March 31, 2003, which were initially announced on November 20, 2002. Details of the revisions are as follows. 1. Revisions to the Consolidated Results Forecasts for the Year Ending March 31, 2003 (1) Results Forecasts for the Year (April 1, 2002, to March 31, 2003) Millions of yen Net Sales Recurring Profit Net Income Initial Forecast (A) 200,000 9,000 5,000 Revised Forecast (B) 195,000 6,000 500 Difference (B-A) (5,000) (3,000) (4,500) Differential Ratio (%) (2.5) (33.3) (90.0) Previous Year 206,334 12,471 (17,829) The documents or audiovisual files that you are going to access may contain information subject to the regulation concerning insider trading in Securities Transaction Regulation No. 166. If you trade equity-related securities, including derivative instruments, of the Company within 12 hours of the announcement (before Feb. 14, 2003, 3:00JST) of related information, you may violate the insider trading regulation. 2. Revisions to Non-Consolidated Results Forecasts for the Year Ending March 31, 2003 (1) Results Forecasts for the Year (April 1, 2002, to March 31, 2003) Millions of yen Net Sales Recurring Profit Net Income (Loss) Initial Forecast (A) 100,000 2,000 1,000 Revised Forecast (B) 97,000 1,800 (3,000) Difference (B-A) (3,000) (200) (4,000) Differential Ratio (%)(3.0) (10.0) - Previous Year 106,550 4,718 (20,766) 3. Reasons for Revisions to the Consolidated Results Forecasts The main reason for the revised forecast is due to factors concerning the consumer business. SEGA forecasts that sluggish sales of "NFL 2K3," which was launched in the first half in the North America market, will have a big effect on our earnings. At the end of the first half of this fiscal year, SEGA adjusted its accounting procedures to lower the product price, which took effect from the beginning of the holiday season. However, in the forth quarter, the sales units seem to be much lower than our target. The sales volume of "NBA 2K3," which was launched in the second half, seems to be lower than our sales target, although SEGA anticipates it will retain in the No. 2 position in this category in the North America market. In addition, in the domestic market, the release of "Initial D special stage (PS2)" and "J.LEAGUE Let's make a professional soccer Club! 3(PS2)" are quite certain to be delayed to next fiscal year. Turning to the amusement business, regarding the amusement machine sales and the amusement center operations, SEGA forecasts that we will maintain our excellent condition, by riding on the strength of our product ability and operation know-how. Significantly, we forecast that amusement machine sales will exceed our targets. That being stated, however, with the present circumstance of economic slump and continuation of deflation, the domestic economic situation seems unstable. As a result of these factors, SEGA anticipates 195 billion yen in consolidated net sales, 6 billion yen in consolidated recurring profit, and 0.5 billion yen in consolidated net income for fiscal year 2003. 4. Future Tasks and Reforming Measures Regarding the consumer business, we are fully aware of the problems, including those in development systems, sale s structures and cost calculation. We are thus taking corrective action in Japan, North America and Europe. Regarding the amusement business, we will keep strengthening our revenue base. 5. Reasons for Revisions to the Non-Consolidated Results Forecasts Revisions were made to SEGA's non-consolidated results forecasts for the same reasons listed above regarding revisions to the consolidated results forecasts, with regard to the amusement machine sales, and consumer business, particularly domestic sales. We anticipate an extraordinary loss of 4.7 billion yen, consisting of allowance for investment loss for North American subsidiary. SEGA Corporation www.sega.jp, formerly known as SEGA Enterprises, Ltd., was founded in 1951 and incorporated in 1960. The Company is a world leader in high-tech entertainment and is affiliated to CSK Corporation, which holds 19.52 percent of issued stock. The Company's principal activity is manufacturing of games and toys. Operations are carried out through the following divisions: Consumer Products (toys, hardware and software for home-video games systems and portable games); Amusement Machines (Coin-operated amusement machines); Amusement Centres (operator of amusement centres and distributor of amusement machines). Consumer products accounted for 55 percent of fiscal 2000 revenues; Amusement centres, 23 percent and Amusement centre operations, 22 percent. Sega Corporation earned 1.01 billion yen (US$8.3 million) in the six months ending September, versus a loss of 20.87 billion yen in the same period of last year, the Troubled Company Reporter- Asia Pacific reports. Sega returned to profitability for the first time in five in years, with an operating profit of 14.2 billion yen ($112 million) last year, compared with an operating loss of 51.7 billion yen previously. The Tokyo-based maker of video game software has been cutting costs and strengthening its balance sheet through disposals of assets, including offices and stock holdings. Contact: Shoichi Yamazaki, Officer Corporate Planning Division +81-3-5736-7071 SEIBU DEPARTMENT: Seeking Y10B From Four Firms ---------------------------------------------- Seibu Department Stores Limited will ask four companies and the Development Bank of Japan to purchase a combined 10 billion yen in new shares to be issued by the ailing Company, Nihon Keizai Shimbun and Kyodo News reported on Tuesday. The four firms are Sogo Inc., Mizuho Investors Securities Co, Seibu Railway Co and trading house Itochu Corporation. The Company will ask Sogo to buy 5 billion yen in new shares, Mizuho Investors 2 billion yen, and Seibu Railway, Itochu and the government-affiliated bank 1 billion yen each, the report said. SHOWA DENKO: Returns to Y13.02B Profit -------------------------------------- Chemical maker Showa Denko KK reported a net profit of 13.02 billion yen in the year ending December 31, versus a loss of 34.26 billion yen a year earlier, due to cost-cutting efforts as well as one-off gains from unit sales, according to Kyodo News. Sales fell 4.9 percent to 674.02 billion yen, the report said. Showa Denko's shareholders equity remained poor while the interest-bearing debt reached as high as the sales as of end of December 2001, Japan Credit Rating Agency reported last year. The cumulative loss amounting to 51.7 billion yen as of end of December 2001 will be cleared off by the end of December 2002 using the capital reserve and earnings retained in fiscal 2002. The financial conditions, however, will remain poor. According to Wright Investor's Service, Showa Denko Kabushiki Kaisha at the end of 2001 had negative working capital, as current liabilities were Y488.73 billion while total current assets were only Y308.55 billion. Showa Denko Kabushiki Kaisha's principal activity is the manufacture and sale of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. STANDARD SHOE: Files For Civil Rehabilitation Proceedings --------------------------------------------------------- Resona Holdings, Inc. (Resona HD) announced that Standard Shoe Co. Limited, which is a customer of its subsidiary bank, The Daiwa Bank Limited (Daiwa Bank, President: Yasuhisa Katsuta), filed an application for commencement of civil rehabilitation proceedings with the Tokyo District Court. As a result of this development, there arose a concern that its claims to the Company may become irrecoverable or their collection may be delayed. Details were announced as follows: 1. Outline of the Company (1) Name: Standard Shoe Co., Ltd. (1) Address: 10-2 Ningyocho 3-chome, Nihonbashi, Chuo-ku, Tokyo (2) Representative: Shizuo Nagai (3) Amount of capital: 200 million yen (4) Line of business: Sales of shoes 2. Fact Arisen to the Company and Its Date The Company filed an application for commencement of civil rehabilitation proceedings with the Tokyo District Court on February 14, 2003. 3. Amount of Claims to the Company Daiwa Bank: Loans 2.7 billion yen Other banking subsidiaries of Resona HD, Asahi Bank, Kinki Osaka Bank and Nara Bank have no claims to the Company. 4. Impact of This Development on the Forecasted Earnings of Resona HD This development does not affect the earnings forecast of Resona HD for the fiscal year ending March 31, 2003, which was announced on February 12, 2003. ========= K O R E A ========= ASIANA AIRLINES: Selling Catering Division To LSG Sky ----------------------------------------------------- Asiana Airlines will sell its catering division to LSG Sky Chefs, a food-service subsidiary of Lufthansa Airlines for 6.5 billion won (US$54.01 million), as part of its restructuring scheme, the Korea Herald said on Tuesday. The airline will maintain a 20 percent share of ownership in the subsidiary and have an active hand in its management. LSG Sky is the world's top in-flight food-service provider, delivering meals to 260 airlines in 45 countries. According to TCR-AP, Asiana Airlines had a negative working capital at the end of 2000, as current liabilities were W1.47trillion while total current assets were only W558.91billion. CHOHUNG BANK: Shinhan Accounting to Undertake Due Diligence ----------------------------------------------------------- Shinhan Accounting Corporation has been selected by the Korea Deposit Insurance Corporation (KDIC) to carry out due diligence on Chohung Bank, Asia in Focus said on Tuesday. Shinhan Accounting, a member of the RSM International Group of accounting, auditing and consulting companies, is not connected in any way to the Shinhan Financial Group, the KDIC said. Samjong KPMG Inc. and Anjin & Co. will also take part in the examination of the lenders assets, liabilities and future potential. Anjin is a partner of Deloitte Touche Tohmatsu (DTT) and has ties with CHB, while Samjong, a member of the Swiss-based KPMG International, is connected to the Shinhan Financial Group. CHOHUNG BANK: Government May Rework Sale of Bank ------------------------------------------------ The government may rework its plan to sell Chohung Bank (CHB) to a private investor, Asia Times reports. The report said the Korea Deposit Insurance Corporation (KDIC) is likely to sound out whether the bank could stand on its own via another round of due diligence by an independent institution, as well as to set the proper sale price. CHOHUNG BANK: Union Calls For Independent Survival -------------------------------------------------- The labor union of Cho Hung Bank once again called for the bank's independent survival, re-igniting the dispute over the sale of the government-owned bank, according to Digital Chosun on Tuesday. An unnamed labor union official said that the government's appointment of a third-party asset evaluation firm for the bank has been made not to speed up the sale of the bank but to judge whether the bank could stand on its own feet. The official also said that he believed that the President-elect does not have any intention of bulldozing the sale. The union and the Korea Financial Industry Union, an umbrella union of the financial organization, claimed the same day that when the new government is inaugurated later this month, the issue of the Cho Hung sales would be sent back to its drawing board. The ruling Millennium Democratic Party (MDP) and the Presidential transition committee for President-elect Roh, however, said that they would proceed with the sales of government-owned banks according to the original schedule. DAEWOO MOTOR: GM Daewoo May Speed Up Bupyong Plant Takeover ----------------------------------------------------------- GM Daewoo Auto & Technology Co., the automaker set up by General Motors Corporation, may acquire Daewoo Motor Co.'s Bupyong plant earlier than expected, Bloomberg and the Maeil Newspaper reports. Bupyong was excluded from the list of assets General Motors took over from Daewoo Motor in April 2002. Under the takeover agreement, the world's biggest automaker said it may buy the plant within six years if its conditions are satisfied. KIA STEEL: Sale Fails on Price Dispute -------------------------------------- The sale of Kia Steel, which is under bank receivership, came to a failure again due to price disputes, the Maeil Business Newspaper said on Monday. Haewon Steeltech Co. Ltd.'s bidding price, which was reportedly 380 billion won, couldn't satisfy creditors, the report said. =============== M A L A Y S I A =============== BERJAYA SPORTS: Wholly Owned Unit Buys 100,000 More ICULS --------------------------------------------------------- The Board of Directors of Berjaya Sports Toto Bhd wishes to inform that its wholly owned subsidiary, FEAB Properties Sdn Bhd has purchased ICULS in the company as follows: (1) Date of Purchase: 19 February 2003 (2) Number of ICULS Purchased: 100,000 (3) Minimum price paid for each ICULS: RM2.98 (4) Maximum price paid for each ICULS: RM3.00 (5) Total consideration paid: RM299,685.48 (6) Total number of ICULS held to-date: 15,100,000 (7) Cumulative consideration: RM44,680,178.96 paid to-date The Company has obtained the necessary approvals for the above purchase of ICULS up to an amount not exceeding RM1.2 billion. Details on the ICULS purchase were disclosed in the Company's Circular to Shareholders dated 5th April 2002 and the Abridged Prospectus relating to the Rights Issue of ICULS dated 20th June 2002. BERJAYA SPORTS: B-Land Comes Through with ICULS Redemption ---------------------------------------------------------- Further to the announcement on 24 September 2002, Commerce International Merchant Bankers Berhad, on behalf of the Board of Directors of Berjaya Sports Toto Bhd, is pleased to announce that Berjaya Land Berhad (B-Land) has fulfilled its undertaking in respect of the redemption of a minimum of RM192.374 million nominal value of ICULS, comprising 50% of the ICULS beneficially owned by the B-Land Group. The B-Land Group would have a total of RM199,870,486 nominal value of ICULS free from encumbrances, before the disposal of an aggregate of RM40,226,000 nominal value of ICULS on 27 January 2003 and 29 January 2003. The ICULS were disposed of at an average price of RM3.03 per BToto ICULS, with the entire net proceeds being applied towards part repayment of the outstanding inter-company advances owing to BToto. Accordingly, as at to date, the B-Land Group beneficially owns a balance of RM159,644,486 nominal value of ICULS which are free from encumbrances. IDRIS HYDRAULIC: Securities Commission OKs Issue Variation ---------------------------------------------------------- We refer to the announcements dated 13 July 2000, 17 August 2000, 11 January 2001, 21 February 2001, 9 March 2001, 19 June 2001, 28 June 2001, 7 August 2001, 22 August 2001, 8 September 2001, 10 June 2002, 1 October 2002, 25 October 2002 and 27 December 2002 on the above. On behalf of Idris Hydraulic (Malaysia) Bhd, Commerce International Merchant Bankers Berhad wishes to announce that IHMB had on 8 and 10 January 2003 applied to the Securities Commission for a variation to the issuance of 150,000,000 new ordinary shares of RM1.00 each (Newco Shares) in Idaman Unggul Sdn Bhd (Newco) in two tranches comprising 28,300,207 Newco Shares and 121,699,793 Newco Shares, as approved by the SC via their letter dated 27 September 2002 and announced on 1 October 2002, to one tranche comprising the entire 150,000,000 Newco Shares. The said variation will result in Newco not complying with the public spread requirement at the time of issuance of the entire 150,000,000 Newco Shares and SC's approval was sought to allow the public spread of Newco to be met within a period of six (6) months from the listing date of the 150,000,000 new Newco Shares. In respect of the above, CIMB is pleased to announce, on behalf of IHMB that the SC had via its letter dated 17 February 2003, approved the variation to the implementation method of the issuance of Newco Shares as mentioned above, subject to the condition that Newco obtains the approval of Kuala Lumpur Stock Exchange ("KLSE") for the listing of Newco Shares on the KLSE, and if the KLSE approval is obtained, that Newco will meet the public spread requirement within six (6) months from the date of the listing mentioned. L&M CORPORATION: Unit Ordered to Pay Outstanding Debt ----------------------------------------------------- The Special Administrators of L & M Corporation (M) Bhd hereby announce that on 18 February 2003, L & M Geotechnic Sdn Bhd, a wholly owned subsidiary of L&M, was served with a notice pursuant to Section 218 of the Companies Act, 1965, to claim for payment of an amount of RM55,792.78 owed by LMG to Supermix Concrete (Malaysia) Sdn Bhd. A judgment order was obtained by Supermix from the High Court of Malaya in Shah Alam on 3 October 2002. NYLEX BHD: Ordered to Pass New SC-Compliant Restructuring Plan -------------------------------------------------------------- The Securities Commission has rejected the restructuring proposal of Nylex Bhd, citing non-compliance to its existing policies and guidelines. In an announcement on Tuesday, Ancom Bhd -- which is Nylex's controlling shareholder -- said the SC had rejected an application by Nylex for a waiver for the departure of the guidelines. As part of its restructuring plan, Nylex proposed a capital reduction plan that would effectively have resulted in splitting the par value of Nylex's shares from the existing RM1 per share to 50 sen per share, The Edge said. As this had not conformed to the SC's guidelines, the company had applied for a waiver but the application was rejected. "In this regard, Nylex is required to furnish a revised proposed reorganisation scheme to the SC for their further consideration. The company will make an announcement in relation to the revised proposed restructuring scheme by Nylex in due course," the company said. Nylex is a 51.94 per cent subsidiary of Rhodemark Development Sdn Bhd, which in turn is a 50.10 percent owned subsidiary of Ancom. ===================== P H I L I P P I N E S ===================== BAYAN TELECOM: Finalizing Restructuring Deal With Creditors ----------------------------------------------------------- Bayan Telecommunications Inc. (BayanTel) is finalizing its debt restructuring agreement with creditor banks and bondholders by the middle of this year, Business World reports. BayanTel is restructuring some $477 million in obligations, $277 million of which is owed to banks and $200 million to bondholders. About five percent, or $26 million, of the bank loans and all the bonds are unsecured. METRO PACIFIC: Clarifies Agreement With Ayala and Greenfield ------------------------------------------------------------ Metro Pacific Corporation, with reference to a request for clarification from the Philippine Stock Exchange (PSE) with regards to news articles dated 13th February 2003 that appeared in various newspaper: 1. "First Pacific sees April turnover of Ft. Boni to Ayala Group" as published in the 13th February issue of the Manila Standard. As the investing public may be aware, on 23rd November 2002 Metro Pacific announced it had entered into a binding Memorandum of Agreement with Ayala Land Inc. and Greenfield Development Corporation for the purpose of repaying Metro Pacific's US $90,000,000 million loan to Larouge B.V., a subsidiary of First Pacific Company Limited (First Pacific). At that time, it was anticipated to complete the transaction by end-January. However, in order to ensure that First Pacific is able to meet Hong Kong Stock Exchange regulations regarding notification to shareholders and other disclosure issues, as well as the time required to ensure the full completion of all conditions precedent to the original MOA, all parties involved in the transaction have agreed to assume a new target closure date of 2nd April 2003. 2. "Penalty clause hangs over loan transfer deal" as published in the 13th February issue of Business World. Under the terms of the MOA, there exist not a single penalty clause of Pesos 427.5 million but two penalty clauses, a "first stage" penalty clause amounting to Pesos 100 million and a "second stage" penalty clause amounting to Pesos 327.5 million. The first stage penalty clause is applicable to any party who withdraws from the transaction prior to the signing of the definitive implementing agreement, while the second stage penalty clause is applicable to any party who withdraws from the transaction after all conditions precedent have been fulfilled, and the definitive implementing agreement is concluded. In fact, the escalating natures of the two-stage penalty clauses only underscore the seriousness of all parties. Troubled property developer, Metro Pacific Corp., could suffer a penalty of PHP427 million if it fails to pursue a deal to sell its controlling stake in Bonifacio Land Corp, TCRAP reported Tuesday. Citing a company statement, the news agency said the penalty is part of the agreement with Ayala Land, which together with Greenfield Development Corp. and Evergreen Holdings Inc., wants to acquire a 50.4% stake in Bonifacio Land. The pact prescribes a penalty of PHP100 million if either party withdraws from the transaction before the signing of an implementing accord. It would increase to PHP327.5 million if the withdrawal happens after signing the implementing accord. For a copy of the press release, go to http://www.metropacific.com NATIONAL BANK: Remittance Business in Tokyo Operating Normally -------------------------------------------------------------- The Philippine National Bank (PNB) said its remittance business in Tokyo is operating normally despite the Japan postal office's rejection of an attempt to link its automated teller systems with the bank on money laundering concerns, AFX Asia reports. PNB handles 60 percent of Philippine-bound remittances sent by Filipino workers through Japanese banks. The Japanese postal authority had declined the remittance tie-up sought by the bank due to the Philippines' inclusion in the Financial Action Task Force (FATF) list of uncooperative countries in the fight against money laundering. PNB clarified in a statement that the application was rejected in December last year, long before the amendments to the law were passed. PNB said it had "not encountered any unusual difficulties so far" after the FATF demanded the Philippines correct the deficiencies in the law before March 15. PHILIPPINE LONG: SEC Issues Pre-Effective Clearance --------------------------------------------------- In the letter to the Philippine Stock Exchange dated February 12, 2003, the Philippine Long Distance Telephone Company (PLDT) disclosed that: "The Corporate and Finance Department of the SEC issued on February 6, 2003 a pre-effective clearance for the proposed issuance by the Company of up P2,000,000,000 worth of short term commercial papers (Peso Notes). The Company was informed of the issuance of the said SEC pre- effective clearance on Tuesday, 11 February 2003. " A copy of the pre-effective clearance from the SEC, as well as a copy of the Registration Statement and Preliminary Prospectus referred therein is available for reference at the PSE Centre library. The press release is located at http://bankrupt.com/misc/tcrap_pldt0219p3.pdf VICTORIAS MILLING: Set to Pay Creditors --------------------------------------- Local suppliers and creditor banks of Victorias Milling Co. (VMC) will be paid starting April as the sugar mill shifts into a full rehabilitation mode for the next 15 years, the Philippine Star said yesterday. According to VMC President Arthur Aguilar, the Company is ready to infuse 300 million pesos of fresh capital by April 15, which is the last requirement before VMC can fully implement its rehabilitation plan. The Company will pay 385 million pesos in the next 12 months to creditor banks and about 150 to 200 local suppliers will be paid one-third of what VMC owes them. VMC employed 3,200 workers when the crisis began in 1997. Now, it operates with 1,645 employees. Meanwhile, the Company is currently holding separate negotiations for collective bargaining agreements with the supervisory and rank and file unions. VICTORIAS MILLING: Appoints New Directors ----------------------------------------- The Board of Directors of Victorias Milling Corporation (VMC), during its special meeting on February 11, 2003 held at the UCPB Boardroom, 15/F, UCPB Building, Makati Avenue, Makati City elected Mr. Edmundo A. Barcelon as Director/Member of the Board in the existing vacancy. The Board appointed: 1. Mr. Arthur N. Aguilar - President 2. Mr. Abelardo E. Bugay - Senior Vice President 3. Mr. Nilo A. Florcruz - Vice-President-Manufacturing. For a copy of the disclosure, go to http://bankrupt.com/misc/tcrap_vmc0219.pdf ================= S I N G A P O R E ================= CHARTERED SEMICONDUCTOR: Reposting of Schedule 13G Filing --------------------------------------------------------- Chartered is re-posting the attached Schedule 13G filed by Temasek Holdings (Private) Limited, Singapore Technologies Pte Ltd and Singapore Technologies Semiconductors Pte Ltd with the United States Securities and Exchange Commission (SEC) on 14 February 2003 on Masnet for the conveniences of investors, shareholders and other members of the public in Singapore. For a copy of 13G filing, go to http://bankrupt.com/misc/tcrap_csm0219.pdf CREATIVE TECHNOLOGY: Posts Changes in Shareholder's Interest ------------------------------------------------------------ Creative Technology Limited posted a notice of changes in substantial shareholder Causeway Capital Management LLC's interests: Date of notice to Company: 17 Feb 2003 Date of change of shareholding: 14 Feb 2003 Name of registered holder: Boston Safe Deposit and Trust Circumstance(s) giving rise to the interest: Others Please specify details: Shares acquired through exchange transactions Information relating to shares held in the name of the registered holder: No. of shares which are the subject of the transaction: 19,950 % of issued share capital: 0.025 Amount of consideration (excluding brokerage and stamp duties) per share paid or received: SGD 11.11 No. of shares held before the transaction: 307,598 % of issued share capital: 0.388 No. of shares held after the transaction: 327,548 % of issued share capital: 0.413 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before the transaction: 4,683,474 % of issued share capital: 5.904 No. of shares held after the transaction: 4,703,424 % of issued share capital: 5.929 Total shares: 4,703,424 FLEXTECH HOLDINGS: Dissolves Dormant Unit ----------------------------------------- The Board of Directors of Flextech Holdings Limited announced that Electec Inc., a dormant subsidiary incorporated in the British Virgin Islands (BVI) and wholly-owned by Electec Pte Ltd, has, by way of a Plan of Dissolution filed with the Registry of Companies in the BVI, been wound up and dissolved on 28 January 2003. Electec Pte Ltd is a wholly owned subsidiary of FE Global Electronics Pte Ltd which in turn is a wholly-owned subsidiary of the Company. Both Electec Pte Ltd and FE Global Electronics Pte Ltd are incorporated in Singapore. The dissolution of Electec Inc. is not expected to have a material effect on the earnings and net tangible asset per share of the Flextech group of companies for the financial year ended 31 December 2002. ISOFTEL LTD: Posts Changes in Shareholder's Interest ---------------------------------------------------- Isoftel Limited posted a notice of changes in substantial shareholder Au Sai Chuen's interest: Date of notice to Company: 18 Feb 2003 Date of change of interest: 07 Feb 2003 Name of registered holder: UOB Nominees Pte Ltd for account of Au Sai Chuen Circumstance(s) giving rise to the interest: Sale initiated by financial institution to meet obligations Information relating to shares held in the name of the registered holder: No. of shares which are the subject of the transaction: 1,500,000 % of issued share capital: 0.66 Amount of consideration (excluding brokerage and stamp duties) per share paid or received: S$0.04 No. of shares held before the transaction: 37,636,000 % of issued share capital: 16.44 No. of shares held after the transaction: 36,136,000 % of issued share capital: 15.78 Holdings of Director/Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before the transaction: 37,636,000 25,000 % of issued share capital: 16.44 0.01 No. of shares held after the transaction: 36,136,000 25,000 % of issued share capital: 15.78 0.01 Total shares: 36,136,000 25,000 Percentage of shareholding calculated based on 228,868,152 shares in issue as of February 18, 2003. KOH BROTHERS: Unveils Disposal of Units --------------------------------------- The Board of Directors of Koh Brothers Group Limited refers to the announcement made on April 25, 2002 in relation to the proposed Disposal. Terms defined in the Announcement will have the same meanings when used in this announcement. Pursuant to the sale and purchase agreement dated 25 April 2002 entered into between the Company and G&W in respect of the Disposal, the Company was to procure the completion of the Restructuring Exercise involving the divestment by KBI of its interests in all its subsidiaries save for KBRS and KBPM, which Restructuring Exercise was to be completed within six (6) months of 12 July 2002 (being the date when the last of the relevant conditions precedent under the Agreement was fulfilled). In furtherance of its obligations under the Agreement to undertake the Restructuring Exercise, the Company had procured the divestment by KBI of its interests in all of its subsidiaries as of 31 December 2002 save for Shantou SEZ New City Recreation Co., Ltd SNCR and Shantou SEZ Jia Xin Real Estate Deve., Co., Ltd. SJXR. The liquidation of SNCR and divestment of SJXR are currently in progress. At the Company's request, G&W entered into a supplemental letter agreement on 31 December 2002 (the "Supplemental Agreement with the Company to amend the Agreement, pursuant to which the Company and G & W agreed to: (a) Complete the Disposal with effect from 31 December 2002 notwithstanding that SNCR and SJXR have not been divested pursuant to the Restructuring Exercise, and the Completion Date has taken place on 31 December 2002; and (b) Adopt 1 August 2002 as the Effective Date for purposes of the Agreement (as amended by the Supplemental Agreement), in particular, for determining the sums payable by G&W or KBGL on account of Restructuring Exercise Losses or Restructuring Exercise Profits, as the case may be. In consideration of G&W agreeing to proceed with the aforesaid Completion notwithstanding that SNCR and SJXR have not been divested pursuant to the Restructuring Exercise, KBGL has undertaken to G&W that: (a) SNCR and SJXR shall continue to be under the management and control of the Company after the Completion Date, and KBGL shall deploy sufficient and adequate persons to serve as directors of SNCR and SJXR, and otherwise to manage the affairs and operations of SNCR and SJXR with effect from the Completion Date; (b) The Company shall procure that the board of directors of SNCR and SJXR complete the liquidation or divestment of SNCR and SJXR within one (1) year of the Completion Date, failing which G&W shall be entitled to and be empowered as the Company's lawful attorney to liquidate SNCR and SJXR; and (c) The Company shall indemnify G&W against all damages, losses, costs and expenses, which G&W may suffer or incur in relation to or in connection with: (i) Any damage, loss, cost or expense suffered or incurred by SJXR and/or SNCR arising in connection with the business, affairs or otherwise of SJXR and/or SNCR; (ii) Any claim against or liability of SJXR and/or SNCR howsoever arising and regardless whether such claim or liability has arisen before or after the Effective Date; and (iii) The liquidation or divestment of SNCR and SJXR. Following the completion of the Disposal, the KBI, KBRS and KBPM have ceased to be the subsidiaries of the Company with effect from 31 December 2002. The Disposal of KBI (which in turn owns KBRS and KBPM) and the undertaking and indemnity given by the Company to G & W in respect of SJXR and SNCR will not have any significant impact on the Company's net tangible assets and earnings per share for the financial year ending 31 December 2002 other than the impact as announced on 25 April 2002. LEE KIM: Dormant Unit Enters Liquidation ---------------------------------------- Lee Kim Tah Holdings Limited disclosed that Unitect Resources Pte Limited, its wholly owned dormant subsidiary has been fully wound-up on February 18, 2003. The winding-up of the subsidiary does not have any effect on the financial position of the Company for the current financial year. 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. 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