/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/030310.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, March 10, 2003, Vol. 6, No. 48 Headlines A U S T R A L I A COLES MYER: Strikers Hold up AU$3M Worth of Stocks, Losses Mount ERG LIMITED: Admits 'Uncertain' Outlook; to Peddle Proton World ERG LIMITED: Noteholders Likely to Settle for Equity, Says Paper GOODMAN FIELDER: Burns Philp Now Controls a Third of Firm C H I N A & H O N G K O N G ASIA SHINE: High Court Sets Hearing of Winding up Petition CANWAY SHIPPING: Wind Up Petition to be Heard Later this Month CHAN YING: Receiver Plans to Cancel Objection to Discharge CK LIFE: Reports Wider Net Loss, But Chair Remains Optimistic CONVINCE TIME: Winding up Sought, Hearing Set for March 26 EAST EAGLE: Creditors Must Prove Claim on or Before March 15 LEUNG WING: Creditors to Hold General Meeting March 19 LUXSTAR DEVELOPMENT: Winding up Hearing Set for April 9 MA SIU: Creditors Must Show Proof by March 14 to Get Dividend I N D O N E S I A ASIA PULP: Export Creditors Raise New Debt Plan Proposals BANK DANAMON: IBRA Confirms Interest of 15 Banks in Stake Sale PT DAVOMAS: Creditors Afford Cocoa Producer More Time to Pay up PT PAKUWON: Seeks Restructuring of Maturing Bonds this Year * Corruption Leading Cause of Corporate Failure, Say Businessmen J A P A N DAIEI INC.: METI Praises New Management Plan DAIEI INC.: Mulls Merger With Affiliates DENTSU INC.: Liquidates German Unit HAZAMA CORPORATION: Ando Mulls Capital Alliance HITACHI LIMITED: May Sell Head Office Building to REIT NICHIMEN CORP: Clarifies 'Lehman Stake Cut' Report NIPPON STEEL: Changes Fiscal 2002 Forecast to Y45B Loss K O R E A ANAM SEMICONDUCTOR: Dongbu Sells 4.7% Stake P H I L I P P I N E S BW RESOURCES: DOJ Drops Criminal Charges Against Tan MANILA ELECTRIC: To Reduce Power Rates PHILIPPINE LONG: WorldCom May Withdraw Complaint vs. Telcos M A L A Y S I A AMSTEEL CORPORATION: Subsidiary Sells Land Holding for RM27.9M CONSTRUCTION AND SUPPLIES: Posts Update on Permata Sentral Buy HONG LEONG: Names Liquidator for Dormant Subsidiary MYCOM BERHAD: SC Has Yet to Approve Revised Rehab Scheme OLYMPIA INDUSTRIES: SC Nod on Rehab Plan Still Pending RAHMAN HYDRAULIC: Sells Mining Rights to ZR Network for RM11.5M UCP RESOURCES: Creditors Wind up Wholly Owned Subsidiary S I N G A P O R E CHEW EU: EGM Set For March 31 CHUAT SOON: Posts Net Loss of $2.4M in 2002 DATACRAFT ASIA: FY03 Outlook Remains Challenging THAKRAL CORPORATION: Creditors OK Extension Agreement TEMASEK HOLDINGS: Fires Staff to Streamline Operations T H A I L A N D JASMINE INTERNATIONAL: Restructuring Plan Narrowly Receives Nod THAI PETROCHEMICAL: Rehab Planner's Chair Resigns - - - - - - - - ================= A U S T R A L I A ================= COLES MYER: Strikers Hold up AU$3M Worth of Stocks, Losses Mount ---------------------------------------------------------------- Struggling retailing giant, Coles Myer, is reportedly losing AU$10,000 a day from the strike at its distribution center in Altona, Melbourne, The Advertiser said Friday. Citing company insiders, the paper said, there is now a temporary distribution center set up at Port Melbourne managed by Linfox transport group, a key bidder for Coles Myer's logistics contracts in New South Wales and whose owner, Lindsay Fox, is a business partner of ousted Coles Myer director Solomon Lew. Now on its fourth week, the strike by about 170 Myer Grace workers threatens to cause significant losses, as the center holds almost AU$3 million worth of Myer Grace Bros and Mega Mart stocks, the paper said. CEO John Fletcher is scheduled to announce the company's first-half report later this month. Sources say the company has already offered a new wage package to address the strikers' demands. "We have offered a 7 percent pay rise over 18 months as part of an enterprise agreement," one source told The Advertiser. "In our view 7 percent is a reasonable and fair offer. We are working through the issues and servicing our customers the best way we can." Meanwhile, it is understood that Coles Myer's new head of supply chain, Andrew Potter, has commissioned a review of the company's supply chain and logistics division, the paper said. The division is expected to play a significant part in the AU$300 million cost savings targets outlined by Mr. Fletcher last year. A progress report on the targets will likely be released along with the first-half report. ERG LIMITED: Admits 'Uncertain' Outlook; to Peddle Proton World --------------------------------------------------------------- A year after buying the company, ERG Limited is now planning to sell Proton World at a discount from its original price tag of AU$150 million, The West Australian said Friday. The move, according to the paper, is part of the company's restructuring plan, after wasting AU$125 million in six months, bringing its total loss to AU$370 million in the last 18 months. In addition to the sale, the company will also try to convince convertible noteholders to switch their AU$250 million of debt into equity at a strike price of 15 cents a share. A meeting for this purpose is slated for March 28, the report says. If they acquiesce to the plan, creditors will end up with 60% of the expanded equity. The company admitted Thursday that there is now significant uncertainty about its ability to continue as a going concern as a result of the December half loss and negative cash flow. Accordingly, shareholder equity is now down to AU$29 million, with just AU$17 million left in its coffers at December 31. The paper says the company is currently negotiating a AU$110 million sale of Proton to an undisclosed buyer. The company says its losses will be clawed back through the sale agreement, which allows ERG to be paid up to AU$40 million extra depending on Proton's performance. It will also release net cash of about AU$60 million, the company adds. A company spokesman refused, however, to say how much ERG would have to pay the new owners for the right to use the Proton technology in its transit systems, a sum that could partially account for the AU$50 million difference between the headline price and net cash return. "The true cost to ERG of its Proton foray might never be known. Proton expenditure is buried in ERG's accounts within the technology development and operational costs of its core public ticketing business," the paper said. CEO Peter Fogarty says the Proton sale would give ERG rights to use the Proton World technology for 20 years, which was essential for it to maintain an edge in bidding for contracts and meeting customer demands for their ticketing systems to be expanded to other applications. Meanwhile, the company also announced last Thursday that corporate adviser Babcock & Brown and a UK investment fund have pledged to underwrite half of its planned AU$50 million rights issue of redeemable preference shares. This could give them 30% of ERG after next month's restructure. In documents released to the stock exchange, ERG said it could have net assets of up to AU$311 million and cash holdings exceeding AU$100 million once the restructure, preference share raising and Proton sale were completed. Mr. Fogarty said the company would have a strong balance sheet after the deals were completed and had lined up financing facilities for Sydney and Seattle that would result in the deals being cash-flow positive. ERG LIMITED: Noteholders Likely to Settle for Equity, Says Paper ---------------------------------------------------------------- Given the real value of their notes, convertible noteholders will likely opt for conversion of their AU$250 million debt into equity, says the Sydney Morning Herald. According to the paper, from their original value of AU$13.50, these notes are now actually valued about AU$4.50 after the company undertook a 3-for-1 share split. Since the company has already admitted that it can no longer continue paying the interest on the notes, the holders would likely elect conversion where they get about 90 shares for each note, the paper said. This will give creditors control of roughly 60% of the expanded equity, after the AU$50 million rights issue that the company plans to execute following the conversion. The deal, however, is not entirely disadvantageous to creditors. Right now the company owns the AU$320 million contract awarded by the State of New South Wales to deliver a card capable of use on all forms of public transport. In addition, CEO Peter Fogarty also harps of more contracts once the restructuring plan is completed. One thing he cannot guarantee, however, is a return to profitability next financial year. "He says that despite the financial uncertainty facing the company, he is prepared to enter into new contracts - a move that suggests a level of confidence in ERG that is beyond that ascribed by the finance community," the Sydney Morning Herald says. The paper, meanwhile, questioned the due diligence made by the state, leading it to choose ERG over Cubic Transportation Systems for the multi-million contract. "It is strange that guarantees would be accepted from a company that needs to ask its convertible noteholders to take shares in the company because it can't continue to pay the interest attached to the notes," the paper said. "The reality is that ERG has a financial record that arguably should not be good enough to pass due diligence for a government contract," it added. The paper concluded that company may be able to get out of its current cash flow bind, but it will struggle to find cash to fund the expenses associated with contracts it won years ago. GOODMAN FIELDER: Burns Philp Now Controls a Third of Firm --------------------------------------------------------- Burns Philp is getting closer to taking over 50% of Goodman Fielder, announcing Thursday last week that it has now amassed 36.7% of outstanding stocks, the Sydney Morning Herald said. The bidder has earlier promised to drop a key condition of its AU$1.9 billion takeover offer if it can reach 50% by today, according to the paper. It is currently offering shareholders AU$1.615 a share, promising to pay all acceptances within 21 days. The paper says it appears many smaller shareholders have already sold, but major investors Perpetual Investments and Maple-Brown Abbott and a host of hedge funds continue to hold on to their stakes. Speculations are mounting that they will continue to do so beyond today in the hope that Burns Philp will raise its bid. Goodman Fielder directors have branded the bid inadequate and consistently recommended that shareholders reject the offer. Alternatively, many analysts have suggested clients should either accept the offer or sell their shares on the market. Meanwhile, some market observers doubt Burns Philp would reach its new shareholding target. "We are moving to the view an increased offer is likely to be needed to gain full control of Goodman Fielder," food sector analyst David Cooke told The Sydney Morning Herald late last week. ================================ C H I N A & H O N G K O N G ================================ ASIA SHINE: High Court Sets Hearing of Winding up Petition ---------------------------------------------------------- A winding up petition filed against Asia Shine Limited has been set for hearing before the High Court of Hong Kong on March 26, 2003 at 9:30 in the morning. Lee Lok Tin of Flat T, 13th Floor, Braemar Terrace, Pak Fuk Road, North Point, Hong Kong filed the petition on February 7, 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. CANWAY SHIPPING: Wind Up Petition to be Heard later this Month -------------------------------------------------------------- Canway Shipping Lines Limited faces a winding up petition, which the High Court of Hong Kong will hear on March 26, 2003 at 9:30 in the morning. Fong Chat Ming of Flat A, 2/F., Intelligent Court, 28 Clarence Terrace, Hong Kong filed the petition on February 5, 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. CHAN YING: Receiver Plans to Cancel Objection to Discharge ---------------------------------------------------------- E.T. O'Connell, the official receiver and trustee of Chan Ying Ming Simon, has made an application to the High Court of Hong Kong objecting to the discharge of the company from bankruptcy under Section 30A(3) of the Bankruptcy Ordinance (Cap.6). Based on the evidence submitted by the company, the Official Receiver now intends to apply to withdraw his application set down to be heard on Wednesday, March 19, 2003 at 11:30 a.m. at the High Court, 38 Queensway, Hong Kong. Creditors who wish to be heard on the application should give notice in writing to the Official Receiver to reach him before March 14, 2003 and may appear at the High Court on the day to be heard on the application. CK LIFE: Reports Wider Net Loss, But Chair Remains Optimistic ------------------------------------------------------------- Due to the revaluation of its research and development site in Tai Po Industrial Estate, CK Life Sciences International (Holdings) reported recently a wider net loss, despite posting better turnover for the year to December. According to The Standard, the company's turnover rose to HK$4.9 million last year from only HK$148,000 a year earlier, while operating loss narrowed by 24% to about HK$11.14 million by the third quarter last year. The fourth quarter saw the company breaking even in terms of operating profit, the paper added. The improved operating result, however, was not enough to offset the HK$28.58 million deficit caused by the revaluation. As a result, the net loss ended at HK$88.89 million, wider than the year earlier figure of HK$57.93 million, the paper said. Chairman Victor Li, however, remains positive about the company's prospects, citing the rapid expansion of its eco- fertilizer sales network last year. "The group will employ a dual strategy of expanding market coverage and deepening market penetration simultaneously to accelerate market acceptance and increase sales," Mr. Li said in a statement. "The group will focus on extending the reach of its distribution network, while at the same time pursuing further penetration of existing markets." For the year under review, the group has made capital commitments of about HK$9.52 million for laboratory instruments, plant and equipment. The group said its interest income was HK$76.582 million. As of December 31, the group had net current assets of about HK$324.7 million, of which HK$270.7 million were cash and bank balances. The group has 161 employees, most of them are engaged in research and development and business development activities, The Standard said. CONVINCE TIME: Winding up Sought, Hearing Set for March 26 ---------------------------------------------------------- The High Court of Hong Kong will hear on March 26, 2003 at 10:00 in the morning the petition seeking the winding up of Convince Time Limited. Poon Suk Ching of Room 5, 8th Floor, Luen Gay Apartments, 124- 134 Belcher's Street, Hong Kong filed the petition on February 12, 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. EAST EAGLE: Creditors Must Prove Claim on or Before March 15 ------------------------------------------------------------ E.T. O'Connell, the official receiver of East Eagle International Limited, announces that creditors of the company have until March 15, 2003 to submit their proofs of claim. Said claims must be sent to his office on the 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong on or before the stated deadline. LEUNG WING: Creditors to Hold General Meeting March 19 ------------------------------------------------------ Creditors of Leung Wing Hung will have a general meeting on March 19, 2003 at 10:30 in the morning. E.T. O'Connell, the company's official receiver, will host the meeting at his office on the 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. LUXSTAR DEVELOPMENT: Winding up Hearing Set for April 9 ------------------------------------------------------- The High Court of Hong Kong will hear on April 9, 2003 at 10:00 in the morning the petition seeking the winding up of Luxstar Development Limited. Lai Pui Yan of Flat 216, 2/F., Block P, Telford Gardens, Kowloon Bay, Kowloon, Hong Kong filed the petition on February 28, 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. MA SIU: Creditors Must Show Proof by March 14 to Get Dividend ------------------------------------------------------------- E.T. O'Connell, official receiver and trustee of Ma Siu Wah, announces that the company intends to declare a dividend. Creditors, however, must prove their debts on or before March 14, 2003, otherwise they will be excluded from the payout, he said. ================= I N D O N E S I A ================= ASIA PULP: Export Creditors Raise New Debt Plan Proposals --------------------------------------------------------- The Indonesia Bank Restructuring Agency, the single-biggest creditor of Asia Pulp and Paper, has began studying the latest proposals submitted by more than a dozen other creditors, Reuters said late last week. The proposals were forwarded to IBRA last Thursday and contained several modifications to the current debt pact. Signed in December, this agreement is due to be finalized by the end of the month. It covers around US$6.6 billion or just fewer than half APP's total debt, Reuter says. "We have received the written proposal... which shows good progress for APP (restructuring). We are studying the legal aspects and will reveal our response to the concepts on [today]," IBRA deputy chairman Mohammad Syahrial said in an interview. Prepared by accounting firm, Ferrier Hodgson, the proposals were expected to be mere reiteration of what the group of mainly export creditors has been talking for several weeks now. These include, among others, solutions to allay their fear that the current debt pact does not contain adequate provisions for cash control and preventive measures against a second default. In a positive sign, Mr. Syahrial said IBRA and the group of lenders had reached agreement on some points of the proposed changes. The group had earlier suggested setting up an entity called APP Trading to ensure cash in the group's four Indonesian units was allocated according to the final debt deal. They also suggested APP issue a significant amount of new shares, to be placed in a trust account and which would act as a guarantee in the event of a second default, Reuters added. But Indonesia's market watchdog, Bapepam, said certain aspects of those proposals were not acceptable. "They have (since) modified the details," Mr. Syahrial said. "About the share in trust, I am still in doubt because it must get approval from the minority shareholders. We have to study the concept carefully." Headquartered in Singapore, APP has 16 manufacturing facilities in Indonesia and China, making it the largest pulp and paper group in Asia outside Japan. Hit by a cash crunch following an aggressive expansion in the 1990s, the group called a debt moratorium in early 2001. APP's four key Indonesian units are PT Indah Kiat Pulp & Paper, PT Tjiwi Kimia, PT Lontar Papyrus Pulp & Paper and PT Pindo Deli Pulp and Paper Mills. * Corruption Leading Cause of Corporate Failure, Say Businessmen ---------------------------------------------------------------- A trade group has called on the government to crack the whip on corrupt officials, who it blames for the rising number of bankruptcy in the country, Jakarta Post said late last week. The Indonesian Textile Association claims the problem of corruption, smuggling and legal uncertainty have been raised by many businessmen since 1998, but the government appears to have turned a blind eye on the problem. "The current macroeconomic condition is fine. However, I am amazed how corruption by civil servants just keeps getting worse, which pushes up the cost of the economy. And the government just turns a blind eye to these corrupt bureaucrats," said well-known economist Faisal Basri in an interview with Jakarta Post. While the trade group's Secretary General Indra Ibrahim agrees that external factors like the global economic slowdown may also be blamed for the rising number of corporate failures, the domestic problems only exacerbate the situation, he said. The latter accordingly reduces the competitiveness of Indonesian products on the world market. The Central Bureau of Statistics recently completed a study that shows the number of bankruptcies among large-and medium-sized manufacturing companies jumped 22 percent to 835 companies in 2002, up from 650 the previous year. The data also showed that 767 companies downsized their operations last year, a 41 percent increase from the 447 in 2001. Mr. Indra said as long as the government could not solve the corruption it should introduce other incentives to domestic export-oriented companies that were losing their competitiveness. The incentives, he added, could include soft loans and tax breaks such as the exemption of the 10 percent value-added tax for imported raw materials for export-oriented industries, such as the textile sector. Labor-intensive manufacturers such as textile, garment and leather companies topped the bankruptcy list last year (242 companies going bankrupt), followed by the food, beverage and tobacco sector (215), and the wood, bamboo, rattan and willow sectors (143), Jakarta Post said. BANK DANAMON: IBRA Confirms Interest of 15 Banks in Stake Sale -------------------------------------------------------------- There are at least 15 banks eyeing the 51% stake in Bank Danamon, according to Reuters, citing Indonesia's Bank Restructuring Agency. IBRA Deputy Chairman I Nyoman Sender recently told the news agency half of those who have shown interest in the bank were foreign. He refused to identify any of them. The sale of the bank, the country's 5th largest, is one the many reforms mandated by the International Monetary Fund. Economists say a successful sale would boost investor confidence in the country following the deadly bombings on the resort island of Bali last October. The sale is slated next month. According to media reports, Singapore's Temasek Holdings has named investment banker Goldman Sachs as its financial adviser for a possible bid. Other potential bidders include HSBC and top Chinese bank, the Industrial and Commercial Bank of China, Reuters says. IBRA, which owns 99.36% of the bank, has said the government hoped to raise nearly US$400 million from the sale to help narrow the country's budget deficit. The agency took over the bank in the aftermath of the Asian financial crisis. PT DAVOMAS: Creditors Afford Cocoa Producer More Time to Pay up --------------------------------------------------------------- Cocoa bean processing company, PT Davomas Abadi Tbk, has succeeded in convincing creditors to extend maturity of their loans, Asia Pulse reported late last week. According to the report, short-term debts of the company, including a US$5.76 million owed to the Indonesian Bank Restructuring Agency, now have maturities extending as far as 2018. Payment of the principal and interest will start in 2006, or a grace period of 6 years from 2000, Asia Pulse said, citing a company statement. The company produces cocoa butter and powder. PT PAKUWON: Seeks Restructuring of Maturing Bonds this Year ----------------------------------------------------------- Esron Siburian, president of property company, Pakuwon Jati, told Surabaya Stock Exchange last week that the company will ask bondholders to restructure two bond debts maturing this year. Mr. Siburian said these bonds will mature in June and December and are valued Rp150 billion (US$17 million) and Rp200 billion (US$22 million) respectively. He said part of the debts had been repaid but it still has Rp260.1 billion (US$29 million) remaining to be settled. The company will propose conversion of part of the debt into land assets, Mr. Siburian said. It will also buyback and seek extension of maturity of sustainable debt for five years with a prevailing interest rate for a three month deposit. Proceeds of the bonds were used to build the Tunjungan Plaza IV and Supermal Pakuwon shopping centers, he said. ========= J A P A N ========= DAIEI INC.: METI Praises New Management Plan -------------------------------------------- The Ministry of Economy, Trade and Industry (METI) on Thursday praised Daiei Inc.'s new management plan, Kyodo News reports, citing METI Vice Minister Seiji Murata. Seiji Murata said at a press conference, "The fact that Daiei itself recognized it is an urgent task to reinforce its marketing operations and is making efforts for the goal deserves praise." Daiei unveiled the plan for the 2003 business year that includes close cooperation with its affiliated food supermarket chain operator Maruetsu Inc. and the launch of new stores for the first time in two and a half years. DAIEI INC.: Mulls Merger With Affiliates ---------------------------------------- Daiei Inc. will consider merging with affiliates Seifu and Sakae before the completion of its midterm rehabilitation plan, as part of its efforts to strengthen its grocery business, Asahi Shimbun and Dow Jones reported Friday. The ailing retailer hopes to benefit from the regional strengths of the two affiliates. Osaka-based Sakae operates about 60 stores, mainly in the Kansai region, and Tokyo-based Seifu runs roughly 60 stores, mostly in the Kanto region. DENTSU INC.: Liquidates German Unit ----------------------------------- Dentsu Inc. will liquidate its German subsidiary Dixos GmbH on March 31, due to a rapid deterioration in the unit's business environment, according to Kyodo News. The public relations- related research unit was established in December 2000. The Group's principal activity is to provide advertisement agency services. The operations involve planning, producing and marketing advertisements in newspapers, magazines, and on television and radio. The Group also operates rental and leasing of buildings, building maintenance service and data processing services. HAZAMA CORPORATION: Ando Mulls Capital Alliance ----------------------------------------------- Ando Corporation is mulling a capital alliance with ailing Hazama Corporation on the basis that the Company goes ahead with its restructuring plan, Dow Jones reports. In January, the civil engineering Company unveiled a drastic revival plan just two years after getting a bailout. The plan included spinning off its mainline construction division into a new Company in October so that its unprofitable and heavily indebted real estate division won't burden the new entity. In 2000, Hazama received a debt waiver worth around 105 billion yen from its creditor banks, including the former Dai-Ichi Kangyo Bank, which is now part of Mizuho Corporate Bank. HITACHI LIMITED: May Sell Head Office Building to REIT ------------------------------------------------------ Hitachi Limited is considering selling its headquarters building to a real-estate investment trust (REIT) owned by real-estate developer Mori Trust Co. to boost management efficiency, Reuters said on Friday. Hitachi declined to estimate the value of the Tokyo building. The Nihon Keizai Shimbun business newspaper said Hitachi would sell the building for 40-50 billion yen ($341-426 million). Hitachi is struggling to cope with a slumping information technology sector and a wavering global economy, although it eked out a net profit in the October-December quarter buoyed by cost cuts. NICHIMEN CORP: Clarifies 'Lehman Stake Cut' Report -------------------------------------------------- Nichimen Corporation responded to a Nihon Keizai Shimbun article entitled " Lehman to Cut Planned Stake In Nissho Iwai-Nichimen by 80 Percent" published on March 2, 2003. The article contained some errors. Nichimen hereinafter explain the current situation. 1. Lehman Brothers (hereafter called Lehman) have proposed that they would invest in preferred stocks and consider the purchase of convertible bonds (hereafter abbreviated as CBs) worth up to 50 billion yen. 2. In response to such a proposal, Nichimen Corporation and Nissho Iwai Corporation are considering to have the new holding Company issue preferred stocks worth up to 10 billion yen and CBs worth up to 50 billion yen. The companies are currently at the stage of working out the terms and conditions with Lehman. 3. Nissho Iwai Corporation has not been informed of any change in Lehman's policy. In conjunction with the above, the equity financing and business plan of the new joint holding Company are as mentioned in the related reference material released on January 29. 1) Preferred stocks and CBs are considered in a segregated manner. The following are quotations from the released materials: - Large-scale equity financing Over 200 billion yen equity financing by issuing common stocks and preferred stocks. A capital reinforcement plan through CB subscription will be added. 2) However, the business plan conservatively includes a capital increase of 200 billion yen only, and does not incorporate an additional capital reinforcement plan through CB subscription. For a copy of the press release, go to http://www.nisshoiwai.co.jp/ni/e/news04.html Nichimen and Nissho Iwai recently announced that they would consolidate under a holding Company in April 2003, the Troubled Company Reporter-Asia Pacific reports. The consolidation plan is intended to enhance the capital of the two companies, and allow the reorganization and streamlining of unprofitable businesses. Given the weak business and financial profiles of Nichimen and Nissho Iwai, however, drastic restructuring efforts could generate additional losses at the companies. In view of the difficult business conditions facing Japanese general traders, the firms could find it difficult to achieve the recurring profits of 100 billion yen they are targeting within five years of the merger, Standard & Poor's Ratings Services said. NIPPON STEEL: Changes Fiscal 2002 Forecast to Y45B Loss ------------------------------------------------------- Nippon Steel Corporation expects a consolidated net loss of 45 billion yen for fiscal 2002 after absorbing losses of 142 billion yen, the Japan Times reports. The steel maker posted a net loss of 28.4 billion yen in 2001. The Company will also acquire all the outstanding shares of its financially troubled subsidiary Nippon Steel Chemical Co. on July 29. Nippon Steel Corporation posted a consolidated net loss of 5.07 billion yen in the first half of 2002, versus a profit of 520 million yen a year earlier, the Troubled Company Reporter- Asia reports. Nippon Steel booked a net extraordinary loss of 11.66 billion yen including 3.69 billion yen, on appraisal of invested securities holdings, and 3.8 billion yen for additional retirement allowances. ========= K O R E A ========= ANAM SEMICONDUCTOR: Dongbu Sells 4.7% Stake ------------------------------------------- The Dongbu Group will sell 4.7 percent stake in Anam Semiconductor held by its subsidiaries namely Dongbu Insurance Co. and Dongbu Life Insurance Co., Asia in Focus reported last week. The 5.8 million shares controlled by the units are to be sold in the open market. The sale of the securities may result in a loss between 4-5 billion won (US$3.37-US$4.22 million) for Dongbu. Anam Semiconductor Inc. posted a net loss of 121.9 billion won in 2002, versus a loss of 228.5 billion won a year earlier, the Troubled Company Reporter-Asia Pacific reported recently. Last September, the Dongbu Group agreed to merge its Dongbu Electronics Co. unit with Anam. The merger will be completed in the first half of this year. ===================== P H I L I P P I N E S ===================== BW RESOURCES: DOJ Drops Criminal Charges Against Tan ---------------------------------------------------- The Philippine Department of Justice (DOJ) dropped criminal charges filed by the Securities and Exchange Commission (SEC) against majority shareholder Dante Tan and seven others for their participation in the BW Resources Corporation stock manipulation case because of insufficient evidence, the Philippine Star and Dow Jones reported. The SEC is now reviewing all legal options available to pursue its case against the individuals and entities involved in the BW scam. During the years 2000 to 2002, the SEC received a total P21.27 million in settlement offers from individuals and brokerage houses implicated in the BW scandal, according to the Troubled Company Reporter-Asia Pacific. The SEC investigation was spurred by the phenomenal rise in the share prices of BW only 1.98 peso per share to a peak of P107 per share in just seven months. The shares have since fallen to below 1 peso. MANILA ELECTRIC: To Reduce Power Rates -------------------------------------- Quezon Power Philippines Inc. agreed to revise a supply contract with Manila Electric Co., saving customers of the distributor $50 million in six years, the Manila Times and Bloomberg reported. ``We offered a rebate that would lower the price of power to consumers by 10 centavos a kilowatt-hour,'' the report said, quoting Quezon Power General Manager Bart Lucareli as saying. The reduction in power rates will relieve some consumers who are feeling the impact of rising fuel prices. Oil companies raised retail prices five times this year because of a weaker peso and rising world crude costs. In the light of the Supreme Court's ruling on overcharging, they ordered the power firm to refund 28 billion pesos to its customers, the Troubled Company Reporter-Asia Pacific said. The power firm is likely to face a financial difficulty once the SC refund decision becomes final and executory. PHILIPPINE LONG: WorldCom May Withdraw Complaint vs. Telcos ----------------------------------------------------------- U.S. telecommunications carrier MCI-WorldCom is likely to withdraw its complaint with the US Federal Communications Commission (FCC) against its Philippine counterparts for unfair practices, leaving AT&T to fight the war alone, the Philippine Star said on Friday. MCI-WorldCom and local carrier Philippine Long Distance Telephone Co. have entered into an interim agreement covering the period February 28 to March 31, 2003 on new rates for US calls entering PDLT's network. Earlier, Worldcom opposed before the US FCC a move by PLDT and Smart to increase their termination rates (rates charged for calls from the US through WorldCom to Philippine Long Distance and Telephone (PLDT) and Smart's network) to 12 cents for calls to PDLT's landline and 16 cents for calls to Smart mobile phone network. AT&T on the one hand named as respondents PLDT, Smart, Globe Telecom, Digital Telecommunications Phils. Inc. (Digitel), Bayan Telecommunications (BayanTel), and PLDT subsidiary Subic Telecom. The twin petitions were filed with the US FCC last Feb. 1 AT&T and WorldCom likewise asked the FCC to order US carriers not to make any payments to Philippine carriers as interim measure. =============== M A L A Y S I A =============== AMSTEEL CORPORATION: Subsidiary Sells Land Holding for RM27.9M -------------------------------------------------------------- We refer to the announcements made by OSK Securities Berhad (OSK) on behalf of the Board of Directors of Amsteel (Board) on 27 August 2002 and 28 January 2003. On behalf of the Board, OSK is pleased to announce that the Securities Commission (SC) has via its letter dated 6 March 2003, which was received on 7 March 2003, approved the Proposed Disposal and the utilization of proceeds as set out in Table I below, subject to the following conditions: (a) The basis and justification for the disposal consideration is to be fully disclosed in the information circular to be issued to the shareholders of Amsteel; and (b) The Proposed Disposal will have to be implemented in accordance with the requirements of the SC's Policies and Guidelines on Issue/Offer of Securities. Amsteel and OSK are also required to provide written confirmations to the SC upon completion of the Proposed Disposal. The Board is agreeable to the conditions imposed by the SC. (Table 1: Utilization of Proceeds) RM'000 ------ Part repayment of bank borrowings 25.43 Estimated expenses 2.50 TOTAL 27.93 CONSTRUCTION AND SUPPLIES: Posts Update on Permata Sentral Buy -------------------------------------------------------------- On 30 January 2003, Alliance Merchant Bank Berhad (Alliance), on behalf of the Board of Directors of Construction and Supplies House Bhd, had announced that the Company was proposing to revise the issue price of the new ordinary shares of RM0.50 each in Newco (Newco Shares) to be issued as consideration for the Proposed Acquisition, to RM0.50 per share as opposed to RM0.60 per share as approved by the Securities Commission (SC) in its letter dated 30 December 2002. As a result, it was proposed that the purchase consideration of RM14,400,000 for the Proposed Acquisition be satisfied by the issuance of 28,800,000 new Newco Shares at an issue price of RM0.50 per share to Dato' Musa bin Haji Sheikh Fadzir, instead of 24,000,000 new Newco Shares at the issue price of RM0.60 per share (Proposed Variation). On behalf of the Board, Alliance wishes to announce that the SC, via its letter dated 6 March 2003, has approved the Proposed Variation, as proposed. Other than the Proposed Variation, all other conditions imposed by the SC in their approval letter for the Proposals* dated 30 December 2002, remain in force. ---------- * These proposals include: (a) Proposed members' scheme of arrangement involving Permata Sentral Holdings Berhad (Newco) pursuant to Section 176 of the Companies Act, 1965 (Proposed SOA) encompassing the following: (i) Proposed share capital reduction and consolidation pursuant to Section 64 of the Act (Proposed Share Capital Reduction); (ii) Proposed share premium reduction pursuant to Sections 60 and 64 of the Act (Proposed Share Premium Reduction); (iii) Proposed Share Exchange; (b) Proposed Rights Issue; (c) Proposed Acquisition of Permata Sentral Sdn Bhd (PSSB) (Proposed Acquisition); (d) Proposed Debt Restructuring; (e) Proposed listing of and quotation for the entire enlarged issued and paid-up share capital of Newco (Proposed Listing of Newco); and (f) Proposed Waiver HONG LEONG: Names Liquidator for Dormant Subsidiary --------------------------------------------------- Hong Leong Industries Berhad (HLI) writes to inform that HLI will place Mai Kah Corporation Sdn Bhd (Mai Kah Corporation), a wholly owned subsidiary of the Company, under Member's Voluntary Winding-Up pursuant to Section 254(1)(b) of the Companies Act, 1965. Mr. Ling Kam Hoong (I.C. No. 391019-08-5069) of Messrs Ling Kam Hoong & Co., No. 6-1, Jalan 3/64A, Udarama Kompleks, Off Jalan Ipoh, 50350 Kuala Lumpur will be appointed as liquidator of Mai Kah Corporation. Mai Kah Corporation is currently a dormant company and there are no future plans to activate it. There is no loss arising from the voluntary winding-up of Mai Kah Corporation. The voluntary winding-up of Mai Kah Corporation will not have any material impact on the net tangible assets and earnings per share of the HLI Group for the financial year ending 30 June 2003. MYCOM BERHAD: SC Has Yet to Approve Revised Rehab Scheme -------------------------------------------------------- Further to the announcement dated 6 February 2003, the Board of Mycom Berhad wishes to announce that Alliance Merchant Bank Berhad, on behalf of the Company had on 6 March 2003 submitted a letter notifying the Ministry of International Trade & Industry and Foreign Investment Committee each in respect of the recent application to the Securities Commission (SC) on 6 February 2003 of the proposed variations to the Proposed Restructuring Scheme. The application is still pending SC's approval. OLYMPIA INDUSTRIES: SC Nod on Rehab Plan Still Pending ------------------------------------------------------ Further to the announcement dated 6 February 2003, the Board of Olympia Industries Berhad wishes to announce that Alliance Merchant Bank Berhad, on behalf of the Company, had on 6 March 2003 submitted a letter notifying the Foreign Investment Committee and the Ministry of International Trade and Industry each in respect of the recent application to the Securities Commission (SC) on 6 February 2003 of the proposed variations made to the Proposed Restructuring Scheme. The application is still pending the SC's approval. COMPANY PROFILE The Company was incorporated under the name of Olympia Plantations Sdn Bhd as a subsidiary of then listed company, Duta Consolidated Bhd, which is now known as Olympia Land Bhd. It ceased to be a subsidiary of Duta on 15 September 1990 and was converted into a public company on 17 May 1991, following which it adopted its present name on 18 July 1991 and was listed in place of Duta on 12 March 1992. The Group's main activities are in financial services, property development, construction, property investment, gaming, and travel and leisure. The Group's operations are substantially carried out in Malaysia. On 30 April 1999, Pengurusan Danaharta Nasional Bhd appointed Special Administrators (SAs) over subsidiary Jupiter Securities Sdn Bhd to assume control of the assets and affairs of the Company. The SAs prepared a workout proposal, which was subsequently approved by secured creditors on 11 October 1999. The workout proposal involves capital injection, novation of certain loans of Jupiter Securities to Olympia, settlement of secured creditors holding pledged quoted securities, conversion of secured creditors with third party charges to restructured term loans and conversion of unsecured creditors to redeemable convertible cumulative preference shares. The workout proposal has been approved by all relevant authorities except the SC where a conditional approval was received on 14 August 2000. The workout proposal is envisaged to be completed in FYE 30 June 2002 pending approval of Olympia's restructuring scheme. The restructuring scheme was entered into on 8 May 2000 by the Company and certain of its subsidiaries (Jupiter Capital Sdn Bhd, Dairy Maid Resort & Recreation Sdn Bhd, Olympia Plaza Sdn Bhd, Olympia Land Bhd, and Mascon Sdn Bhd, and sub-subsidiaries LC (BVI) Ltd and Miles & Miles Leisure Sdn Bhd) with financial institution creditors. The scheme entails a proposed debt and corporate restructuring comprising capital reduction and consolidation, reduction of share premium account, rights issue with detachable warrants, special issue, debt novation, debt restructuring, acquisition of property companies and land, disposal of property companies, inter-company settlement with substantial shareholder Mycom Bhd and offer for sale. The scheme was submitted to the SC in August 2000. In February 2001, the SC requested for a more comprehensive scheme for its consideration. The revised scheme was submitted to the SC in July 2001. Subsequently, a further amended scheme was submitted to the relevant authorities for approval in December 2001. The scheme as amended, has obtained approvals from BNM, FIC and MITI whilst the approval from the SC is still pending. The amended scheme is inter-conditional with the proposed restructuring scheme of Mycom, which is also pending SC approval. CONTACT INFORMATION: Level 23, Menara Olympia 8, Jln Raja Chulan 50200 Kuala Lumpur Tel: 03-2300033 Fax: 03-2300011 RAHMAN HYDRAULIC: Sells Mining Rights to ZR Network for RM11.5M --------------------------------------------------------------- (1) INTRODUCTION On 16 June 2000, Pengurusan Danaharta Nasional Berhad (Danaharta) pursuant to the Pengurusan Danaharta Nasional Berhad Act 1998 (Danaharta Act), appointed Mr. Yeo Eng Seng, Mr. Adam Primus Varghese Bin Abdullah and Mdm. Wong Lai Wah of Messrs Ernst & Young as Special Administrators of RHTB (Special Administrators) to manage the business and operations of the Company. The Special Administrators of RHTB have prepared a workout proposal pursuant to Section 44 of the Danaharta Act (Workout Proposal) to restructure RHTB, which inter-alia, provides for the disposal of RHTB's assets (including the Mining Right and the Related Assets). On 28 June 2002, the Workout Proposal was duly approved pursuant to the Danaharta Act. RHTB pursuant to a letter dated 6 January 2003 invited parties whose offer was previously rejected, to resubmit their offer to purchase the Mining Right and Related Assets based on procedures laid down in the information memorandum issued by RHTB on 5 July 2002 and RHTB's letter dated 6 January 2003. By a letter of offer issued by ZR Network Sdn Bhd (ZNSB) to RHTB dated 10 January 2003, ZNSB had offered to purchase the Mining Right and the Related Assets from RHTB. The offer by ZNSB was subsequently accepted by the Special Administrators of RHTB via its letter dated 17 January 2003. Pursuant thereto Public Merchant Bank Berhad (PMBB), on behalf of the Special Administrators of RHTB, is pleased to announce that the Company had on 5 March 2003, entered into a Sale and Purchase Agreement (SPA) with ZNSB for the disposal of the Mining Right and the Related Assets, for a total cash consideration of RM11,500,000 (Disposal Price). (2) DETAILS OF THE PROPOSED DISPOSAL 2.1 Particulars The Proposed Disposal involves the disposal by RHTB of the Mining Right and Related Assets to ZNSB for a total cash consideration of RM11,500,000. 2.2 Basis of Arriving at the Disposal Price The Disposal Price of RM11,500,000 represents the best cash offer received by the Special Administrators of RHTB from ZNSB pursuant to a restricted bidding exercise involving the disposal of the Mining Right and Related Assets. ZNSB bid for the Mining Right and Related Assets, was accepted by the Special Administrators of RHTB on 17 January 2003 and the SPA was signed on 5 March 2003. 2.3 Information on the Mining Right and Related Assets The Mining Right granted by the Pejabat Daerah Dan Tanah, Pengkalan Hulu, Hulu Perak, Perak Darul Ridzuan (Perak Land Office) to RHTB via Mining Certificates 1/84 and 2/84 is a lease to operate a tin mine with the right to enter, occupy and mine on the piece of land measuring approximately 699.509 hectares in Klian Intan, Perak Darul Ridzuan (Mining Land). The Mining Land contains alluvial tin ore deposit and has two power generation plants for the supply of electricity i.e. hydroelectric power plant and a diesel-generated power plant known as Pong Power Station and Mine Site Power Station respectively. The Mining Right granted to RHTB via Mining Certificates 1/84 and 2/84 which expired on 31 December 1998 had been renewed and extended for a term of 15 years via letters dated 25 February 1999 issued by the Perak Land Office. The tenure of the Mining Right was subsequently reduced to a term of five (5) years, expiring on 31 December 2003, via a letter of notification issued by the Perak Land Office dated 4 May 1999. RHTB had on 5 October 2002, applied to the Perak Land Office for renewal of the Mining Right and the said application is currently pending the approval of the Perak Land Office. The Related Assets comprise of separate freehold land, leases and operating assets in relation to RHTB's tin mine operation. A dam and high tension cables from the Pong Power Station to the mines are situated on the freehold land, whereas the mini hydro- electric power plant, Pong Power Station, mines office and laborers' quarters are situated on the leasehold lands. Operating assets in relation to RHTB's tin mine operation comprises, among others, three (3) ore processing mills, earth moving equipment, mini hydro power station, diesel power engine station, motor vehicle and other equipment. With the disposal of the Mining Right and the Related Assets, RHTB would cease its tin mine operations which is currently generating a profit before tax of approximately RM355,000 based on the latest audited accounts as at 31 December 2001. The net book value of the Mining Right and the Related Assets based on the latest audited accounts as at 31 December 2001 of RHTB is approximately RM470,000. 2.4 Salient terms and conditions of the SPA The salient terms and conditions of the SPA are set out below: (a) The Disposal Price for the Mining Right and the Related Assets shall be payable in the following manner: (i) Upon execution of the SPA, ZNSB shall pay to RHTB the cash sum of RM1,150,000, being part payment of the Disposal Price (Deposit). RHTB shall, within five (5) business days from the date of execution of the SPA, place the Deposit in an interest bearing account at the prevailing interest rate at any Bumiputra-Commerce Bank Berhad's branch, pending completion of the transaction contemplated by the SPA; and (ii) The balance of the Disposal Price amounting to the cash sum of RM10,350,000 shall be payable by ZNSB to RHTB within ten (10) business days from the date on which the last of the conditions precedents as mentioned in sections 2.4 (c) and 5 herein is obtained (Completion Period). Failing which RHTB shall, at the written request of ZNSB, extend the Completion Period at RHTB's sole discretion provided always that ZNSB shall pay interest at the rate of ten per cent (10%) per annum on the balance of the Disposal Price or any part thereof outstanding, calculated on a daily basis from the first day of the Completion Period to the date the balance of the Disposal Price is paid to RHTB; (b) In consideration of the Disposal Price payable by ZNSB in accordance with section 2.4 (a) herein, RHTB agrees to sell and ZNSB agrees to purchase the Mining Right and the Related Assets on an "as is where is" basis, free from all encumbrances at the Disposal Price upon all the terms and subject to the conditions of the SPA; (c) The parties hereto agrees that the SPA is conditional upon the approvals mentioned below, being fulfilled on a date not later than sixty (60) business days from the date of the SPA or such other extended date as may be determined by the RHTB at RHTB's sole discretion: (i) Approvals to be procured by RHTB as set out in section 5 herein; (ii) Approvals to be procured by ZNSB: (aa) the consent of the Perak Land Office for the transfer and/or assignment of the Mining Right and the Related Assets (if applicable) to ZNSB; (bb) the approval of the Foreign Investment Committee; and (cc) any other relevant authorities, if necessary; (d) Upon the execution of the SPA, RHTB shall execute a Deed of Assignment in escrow in relation to the Mining Right and Related Assets with the exception of the titles mentioned in section 2.4 (e) herein, to be assigned to ZNSB and the Deed of Assignment shall be deposited with RHTB's solicitors who are hereby authorised by the parties hereto to send the Deed of Assignment to the Perak Land Office for endorsement of its consent thereon. RHTB's solicitors shall forward the duly endorsed Deed of Assignment to ZNSB's solicitors on the Completion Date (as defined herein); (e) RHTB shall also execute the Memoranda of Transfer in escrow in favour of ZNSB to effect the transfer of lands held under No. GM 291, Lot 344, Tempat Kota Bunyi, Mukim Pengkalan Hulu, and No. GM 34, Lot 1886, Tempat Bukit Asu, Pong, Mukim Blukar Semang both of Negeri Perak, forming part of the Related Assets, to ZNSB and the Memoranda of Transfer shall be deposited with RHTB's solicitors who are authorised to forward the said Memoranda of Transfer to the ZNSB's solicitors on the Completion Date (as defined herein) (Transfer); (f) ZNSB shall bear the stamp duty payable on the SPA, all costs, fees and expenses in connection with the preparation of the SPA (including but not limited to solicitors fees and disbursement) and all costs for obtaining the approval as set out in section 2.4(c) and 5 herein for the transfer and renewal of the Mining Right and Related Assets to ZNSB (including but not limited to cost and expense of solicitors, accountants, merchant bankers, valuers and any other professional advisers which may be incurred by RHTB); (g) RHTB shall, within five (5) business days from the date of full settlement of the Disposal Price and late payment of interest (if any) and cost and disbursement in accordance with section 2.4(a) and 2.4(f) herein, inform ZNSB in writing of the date on which the completion of the SPA should take place in the office of the Special Administrators, which date shall not be later than ten (10) business days from the date of full payment of the Disposal Price and late payment of interest (if any) and cost and disbursement to RHTB (Completion Date); and (h) On the Completion Date, RHTB shall deliver to ZNSB the following documents: (i) a copy of the approval letter from the Securities Commission (SC) approving the transaction herein; (ii) the original letter from the Perak Land Office renewing the Mining Right; and (iii) the duly executed and endorsed Deed of Assignment and the Transfer mentioned in section 2.4 (d) and 2.4 (e) to ZNSB's solicitors. 2.5 Information on ZNSB ZNSB was incorporated in Malaysia under the Companies Act, 1965, as a private limited company under its present name on 8 June 1996. The present authorised share capital of ZNSB is RM100,000 comprising 100,000 ordinary shares of RM1.00 each, of which 100,000 shares have been issued and fully paid-up. The principal activity of ZNSB is that of general trading. The Board of Directors of ZNSB comprise of Nur Azida Binti Daud, Halizah Binti Tan Sri Abdul Halim and Nur Rafeeda Binti Daut. The major shareholders of ZNSB are Nur Azida Binti Daud and Azizah Binti Hj. Mohd Yunus with shareholdings of approximately 60.00% and 39.99% in ZNSB respectively. 2.6 Utilisation of Proceeds The proceeds from the sale of the Mining Right and the Related Assets will be used for the proposed debt settlement of RHTB, the terms and conditions of which are set out in the Workout Proposal prepared by the Special Administrators of RHTB and approved by Danaharta and the secured creditors of RHTB on 28 June 2002. 2.7 Liabilities to be assumed by ZNSB ZNSB will not assume any new liabilities pursuant to the Proposed Disposal. 2.8 Cost of investment The original cost of investment in the Mining Right and the Related Assets are set out in Table 1. (3) RATIONALE FOR THE PROPOSED DISPOSAL The net sales proceed from the Proposed Disposal will be utilised for the proposed debt settlement of RHTB, the terms and conditions of which are set out in the Workout Proposal prepared by the Special Administrators of RHTB and approved by Danaharta and the secured creditors of RHTB on 28 June 2002. (4) EFFECTS OF THE PROPOSED DISPOSAL The Proposed Disposal will not have any effect on the issued and paid up share capital and shareholding structure of RHTB as the Disposal Price is satisfied entirely by way of cash. The Proposed Disposal is expected to result in a gain on disposal of approximately RM11,030,000 to the RHTB Group. The proforma effects of the Proposed Disposal on the NTA of RHTB are set out in Table 2. (5) APPROVALS REQUIRED The Proposed Disposal will be subject to the following approvals being obtained by RHTB: (a) The approval of SC; (b) The approval for the Workout Proposals, which was obtained on 28 June 2002; and (c) Any other relevant authorities, if necessary. (6) DIRECTORS AND MAJOR SHAREHOLDERS' INTEREST The Special Administrators of RHTB have written to the directors and major shareholders to ascertain whether they or any persons connected to them has any interest, direct or indirect, in the Proposed Disposal. As at the date of this announcement, the Special Administrators of RHTB have received written confirmation from all of the directors and major shareholders, except for Cerah Kualiti Sdn Bhd, that they do not have any interest in the Proposed Disposal. The Special Administrators have yet to receive any written confirmation from Cerah Kualiti Sdn Bhd. (7) STATEMENT BY THE SPECIAL ADMINISTRATORS OF RHTB After taking into consideration the current financial position of the RHTB Group and the rationale for the Proposed Disposal, the Special Administrators of RHTB are of the opinion that the Proposed Disposal is in the best interest of the RHTB Group and its creditors. (8) ESTIMATED TIMEFRAME FOR COMPLETION Baring unforeseen circumstances and subject to all required approvals, the Proposed Disposal is expected to be completed within four (4) months from the date of this announcement. (9) COMPLIANCE WITH SC POLICIES AND GUIDELINES ON ISSUE / OFFER OF SECURITIES (SC GUIDELINES) The Proposed Disposal is in compliance with the SC Guidelines. (10) DOCUMENTS FOR INSPECTION The SPA dated 5 March 2003 is available for inspection at the registered office of RHTB at level 14 Uptown 1, No.1 Jalan SS21/58, Damansara Uptown, 47400 Petaling Jaya, Selangor Darul Ehsan, during normal office hours from Monday to Friday (except public holidays) from the date hereof for a period of two weeks. UCP RESOURCES: Creditors Wind up Wholly Owned Subsidiary -------------------------------------------------------- The Board of Directors of UCP Resources Bhd hereby wish to inform that one of its wholly owned subsidiary, UCP Geotechnics (M) Sdn Bhd (UCP Geo or the Company) will be wound up by way of creditors' voluntary winding up on 7 March 2003 due to its inability to continue business. Pursuant to Section 255 (1) of the Companies Act, the concerned creditors and lenders will be informed of the Meeting of the Company and of its creditors. The total Cost of Investment by UCP Resources Berhad in UCP Geo which amounted to RM16 million had already been fully written off during the financial year ended 30 June 2002. The winding up of UCP Geo is a part of the proposed corporate and debt restructuring scheme of UCP where announcements have been previously made. CONTACT INFORMATION: Lot 302, 3rd Floor Komplek Selangor Jalan Sultan 50000 Kuala Lumpur Tel: 03-2325997 Fax: 03-2326036 ================= S I N G A P O R E ================= CHEW EU: EGM Set For March 31 ----------------------------- The Extraordinary General Meeting of Chew Eu Hock Holdings Ltd will be held at 58 Kallang Pudding Road, 9th Floor C.E.H. Industrial Building, Singapore 349330 on 31 March 2003 at 10.00 a.m. for the purpose of considering and, if thought fit, passing with or without any modification, the following resolution which will be proposed as a special resolution: SPECIAL RESOLUTION: CHANGE OF NAME OF THE COMPANY That: - (a) Subject to the approval of the Registrar of Companies and Businesses, the name of the Company be changed from "Chew Eu Hock Holdings Ltd" to "Hiap Hoe Limited" and that the name "Hiap Hoe Limited" be substituted for "Chew Eu Hock Holdings Ltd" wherever the latter name appears in the Memorandum and Articles of Association of the Company; and (b) The directors of the Company be and are hereby authorized to complete and do all such acts and things (including executing such documents as may be required) as they may consider expedient or necessary to give effect to this Resolution. NOTES: 1. A member of the Company entitled to attend and vote at the Extraordinary General Meeting is entitled to appoint not more than two proxies to attend and vote in his stead. A proxy need not be a member of the Company. 2. The instrument appointing a proxy must be deposited at the registered office of the Company at 58 Kallang Pudding Road, C.E.H. Industrial Building, Singapore 349330 not less than 48 hours before the time appointed for the Extraordinary General Meeting. TCR-AP reported that Chew Eu Hock Holdings Ltd posted a net loss S$35.325 million in the six months to January 2002 against a loss S$1.129 million a year earlier. CHUAT SOON: Posts Net Loss of $2.4M in 2002 ------------------------------------------- Furniture materials supplier Chuan Soon Huat booked a full-year net loss of S$2.4 million in 2002 versus a profit of S$1.5 million a year earlier, Channel News Asia said on Friday. The Company attributed the fall mainly to lower sales to the United States and Europe. DATACRAFT ASIA: FY03 Outlook Remains Challenging ------------------------------------------------ Loss-making Datacraft Asia Ltd. said its 2003 outlook remained challenging and it expected to set aside more money for restructuring charges, according to Reuters. The Company might break even at the operating level for the six months before goodwill charges, while operating profit for the second half should improve, the report said. Datacraft shares suffered heavy selling after the profit warning, slumping seven percent to a morning low of US$0.62. At midday, the stock was down four cents to US$0.625 on moderate volume of over six million shares. The Company expected to incur between US$3.5 million to US$3.8 million in restructuring costs for the six months ending March 31, 2003. THAKRAL CORPORATION: Creditors OKs Extension Agreement ------------------------------------------------------ The Directors of Thakral Corporation Limited announced that the Company, the Put Option Companies, the Put Option Guarantors, the Share Escrow Agent and the bank creditors have entered into an extension agreement on 6th March 2003 under which the Put Option obligations of the Put Option Companies have been deferred by a period of one month to 30 April 2003. The capitalized terms in this announcement have the same meaning as those in the Scheme Circular dated 19 February 2002. TEMASEK HOLDINGS: Fires Staff to Streamline Operations ------------------------------------------------------ Temasek Holdings Pte fired workers in the last few months amid a restructuring that started last year, the Business Times and Bloomberg reported. ``We are in a process of streamlining and rationalizing our operations,'' the Company said. ``We had some retrenchments last year, while other staff have been redeployed. We will continue to review and rationalize as we refocus.'' Temasek has 200 employees now from 220 workers it had before, the paper said. Part of the reorganization includes the incorporation of Temasek Capital, the direct investment unit, into parent Company Temasek Holdings. Temasek Capital had as many as 60 employees, the report said. =============== T H A I L A N D =============== JASMINE INTERNATIONAL: Restructuring Plan Narrowly Receives Nod --------------------------------------------------------------- Over 50% Jasmine International Plc's creditors voted in favor of its debt restructuring plan, enough to pass pact that will reduce the company's debts to just over THB3 billion from THB11.8 billion. But a Jasmine official, who declined to be identified, told Reuters that 30 lenders, representing 40 percent of the firm's debt, would submit a petition with the Central Bankruptcy Court to challenge the plan. Accordingly, they oppose the plan because they expect to be repaid at different levels ranging from 19.58 percent to 100 percent of their exposures. The firm has a total of 44 creditors, which include Bangkok Bank Plc, Thailand's biggest commercial bank, and HSBC Bank Plc, Reuters said. Under the current plan, the creditor said more than 70 percent of the total debt would be written off, leaving Jasmine with THB3.2 billion debt to be repaid over the next nine years. He said creditors would convert some debts into 18 million shares, and Jasmine would also issue 30 million new shares to a group of investors to raise funds for debt repayment. Founded by Commerce Minister Adisai Bodharamik, the company filed a petition late last year to restructure its debts under the supervision of the Central Bankruptcy Court. The firm operates a wide range of telecoms-related businesses, from submarine cable network to satellite and Internet. It also has an interest in provincial fixed-line operator TT&T Plc, Reuters said. Jasmine has registered capital of four billion baht, consisting of 400 million shares with a 10-baht par value. It posted a net loss of THB1.62 billion in 2002 versus a profit of THB677 million in 2001, Reuters added. THAI PETROCHEMICAL: Rehab Planner's Chair Resigns ------------------------------------------------- Sippanondha Ketudat, the executive chairman of Effective Planners Ltd., has resigned his post, citing health reasons, Bangkok Post said late last week. A former chairman of the National Economic and Social Development Board, Mr. Sippanondha leaves his post in Effective Planners two years after getting involved in the rehabilitation of Thai Petrochemical Industry Plc. Along with two other EPL directors, he leaves behind 30 pending actions filed against the plan administrator, three of which will be decided soon. Most of these cases were filed by Prachai Leophairatana, the ousted chief executive of TPI, which was the country's most heavily indebted company with obligations of US$3.7 billion when EPL began running it, the paper said. The Central Bankruptcy Court is scheduled to rule on the three cases on April 21. Two of the cases -- one by Mr. Prachai and another lodged through the Official Receiver -- seek to remove EPL as the plan administrator, citing a lack of legal qualifications. Another case involves allegedly unfair advisory fees, Bangkok Post says. The other two directors who have also tendered their resignations are Chaiyawat Wibulswasdi, former governor of the Bank of Thailand; and Associate Professor Prasit Kowilaikul, rector of Hua Chiew University. Both joined EPL at the request of Mr. Sippanondha. "All three have given us fantastic help over the past two-and-a- half years. The guidance that they have offered has been very important, on a range of issues. These guys have been there and done it all," EPL Director Peter Gothard told Bangkok Post. Meanwhile, EPL announced Thursday that TPI had optimized production and procurement of feedstocks for all of last year with US$79.67 million in additional working capital provided by TPI's creditors. As a result, TPI was able to run its refinery at an average of 97,000 barrels per day (bpd) in 2002, compared with 67,000 bpd in 2001. The refinery has run at an average of 98,000 bpd so far this year, the report said. S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick, 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 ***