/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/030318.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, March 18, 2003, Vol. 6, No. 54 Headlines A U S T R A L I A COLES MYER: First Half Performance Belies Break-up Rumors CTC RESOURCES: Bankruptcy Notices Against Ex-Directors Set Aside EXOTIC TIMBERS: Forges Key Undertakings with ASIC GOODMAN FIELDER: Burns Philp Moves Closer to Taking Over Firm TELEVISION & MEDIA: Says Restructuring Almost Complete C H I N A & H O N G K O N G BROADWAY SEAFOOD: Hearing on Winding Up Petition Next Week EXCO GROUP: Winding Up Sought; Hearing Set for April 2 HONG KONG: Engineering Firm Faces Winding up Suit in High Court J.A. HOLDINGS: Winding up Hearing Scheduled Early Next Month KING CORPORATION: Virgin Islands Firm Files Winding up Petition PASSPORT HONG KONG: To Contest Wind up Suit on April 2 STABLE WIDE: High Court Sets Winding up Hearing on April 9 TAI SUN: Voluntarily Winds up Business; Hearing on April 16 TAK CHEUNG: Winding up Petition Set for Hearing April 9 TOM.COM: Clarifies Newspaper Reports WINNER HOLDINGS: Fu Tak Plastic Seeks Winding Up of Firm I N D O N E S I A BANK DANAMON: IBRA to Name Five Bidders Thursday J A P A N DAIEI INC.: Creditors Provides Y40B Aid Package DAIEI INC.: Selling Fukuoka Dome JAPAN AIRLINES: Face Lawsuit For Alleged Safety Breaches KINKI NIPPON: Likely to Promote VP Yamaguchi to President ORIENT CORP.: Mizuho Corporate Bank Extends Support to Firm TOHATO INC.: Enters Civil Rehab Proceedings * Delays in Stock Disposals May Pressure Bank Ratings, S&P K O R E A HYNIX SEMICONDUCTOR: Invests $100M in U.S. Plant HYNIX SEMICON: Kumho Electric Cancels Contract With Chipmaker HYNIX SEMICONDUCTOR: Launches First Applicable Ferroelectric RAM HYNIX SEMICONDUCTOR: Accepts Executives' Resignations SK CORPORATION: Shareholders Protest Accounting Scandal SK CORPORATION: Moody's Downgrades Rating to Ba2 M A L A Y S I A BREM HOLDING: Claims it is Solvent; Says Wind up Suit Baseless C.I. HOLDINGS: Issues New Shares to Settle Debts GENERAL LUMBER: Replaces PricewaterhouseCoopers as Auditor MALAYSIAN PLANTATIONS: Seeks Approval for RM150M Notes Issue MBF HOLDINGS: Appoints Administrators for Two Aussie Units P H I L I P P I N E S BENPRES HOLDINGS: Ready to Sell BayanTel, MNTC CEBU PLAZA: Ceasing Operations March 15 MANILA ELECTRIC: Seeking Mediation for Supply Dispute S I N G A P O R E CHARTERED SEMICONDUCTOR: Issues Clarification on Media Article FLEXTECH HOLDINGS: Divestment of Interest in Subsidiary PRESSCRETE HOLDINGS: Unveils Housing Township Project in India REED GROUP: Issues Profit Warning SEATOWN CORPORATION: EGM Set For April 2 T H A I L A N D SRITHAI SUPERWARE: Announces Dividend Payment, AGM Date Info - - - - - - - - ================= A U S T R A L I A ================= COLES MYER: First Half Performance Belies Break-up Rumors --------------------------------------------------------- After reporting Monday a strong first half result, Coles Myer CEO John Fletcher said the break-up of the company is now unlikely. "Yes, it makes it less likely. The whole issue of whether or not structural change is needed in this company really rests on the view of whether or not you can actually run eight brands across the retail spectrum and deliver consistent results," Mr. Fletcher was quoted by Reuters as saying. "I think this result says that we can. I think you should anticipate if we continue to meet milestones these six months then we'd be entitled to say there's no particular driving reason for wanting to (break up the company)," he told reporters. "If we do our jobs, there'd be no reason to revisit structural alternatives." CTC RESOURCES: Bankruptcy Notices Against Ex-Directors Set Aside ---------------------------------------------------------------- The Federal Magistrates Court has set aside the bankruptcy notices issued by the Australian Securities and Investments Commission (ASIC) against William Forge, Jozsef Endresz, Dawn Endresz and Allan Endresz, all former directors of CTC Resources NL (CTC Resources). ASIC issued the bankruptcy notices after the August 2002 finding of the Supreme Court of New South Wales that Mr. Forge, Mr. Jozsef Endresz and Mrs. Endresz (as directors of CTC Resources) and Mr. Allan Endresz (as an officer of CTC Resources) contravened the directors' duties provisions of the Corporations Law. At that time, Mr. Forge, Mr. Jozsef Endresz and Mrs. Endresz were banned from being involved in the management of a company for eight years, and ordered to pay a fine of AU$245,000 each. Mr. Allan Endresz was banned for 16 years and ordered to pay a fine of AU$200,000. The former directors subsequently appealed the decision, made an application for a stay of the decision and applied for an order setting aside the bankruptcy notices. On 4 November 2002 the application for a stay was dismissed. The appeal will be heard on 14 May 2003. The Court ordered that the bankruptcy notices be set aside on the grounds that the claim made by ASIC relating to the payment of fines for breach of directors duties was not based on a debt provable in a bankrupt estate and, therefore, could not be used as the basis for the bankruptcy notice. EXOTIC TIMBERS: Forges Key Undertakings with ASIC ------------------------------------------------- The Federal Court has accepted undertakings from Exotic Timbers of Australia Limited (ETAL), current director Joseph Karra, and former director Christine Karra, that will protect the interests of investors while a number of actions are carried out in relation to two agricultural schemes operated by the company. The undertakings follow an application by the Australian Securities and Investments Commission (ASIC) for the appointment of a receiver and manager to Exotic Timbers of Australia Limited and the NT1 and NT3 schemes it operates. Justice Dowsett adjourned ASIC's interlocutory application to 3 April 2003 in the Federal Court, Brisbane, to allow time for the undertakings to be carried out. "ASIC took this action to protect the interests of investors in the schemes. We are concerned that Exotic Timbers may be in breach of the conditions of its securities dealers' licence and the Corporations Act," ASIC Director of Enforcement Allen Turton said. The parties have agreed that they will not dispose of, or otherwise deal with any interest or property of Exotic Timbers or either scheme, other than in the normal course of the business or for the purpose of paying reasonable legal expenses. They will also seek to appoint a third director to the company, as required under the law. The undertakings also include that the parties will: (1) Notify all investors in the schemes of the court proceedings and the interlocutory application, including the adjournment date of 3 April 2003; (2) Take whatever steps are necessary to ensure the custodian of the NT1 and NT3 schemes holds the properties from which they are operated; (3) Lodge an audited compliance report with ASIC; and (4) Provide ASIC with details of any proposed members of the compliance committees of the schemes by 26 March 2003; and Comply with the s788 notice issued by ASIC on 26 March 2003. The NT1 and NT3 schemes are agricultural schemes producing sandalwood, neem, white cedar and mahogany trees on behalf of investors throughout Australia. Over 800 woodlots have been sold through the schemes and over $6 million has been invested. The schemes are the only agricultural managed investment schemes operating in the Northern Territory. The plantations are located in Batchelor, about 100 kilometers south of Darwin. GOODMAN FIELDER: Burns Philp Moves Closer to Taking Over Firm ------------------------------------------------------------- NOTICE THAT ALL REMAINING DEFEATING CONDITIONS TO TAKEOVER BID HAVE BEEN FREED We act for BPC1 Pty Limited (BPC1) and Burns, Philp & Company Limited (Burns Philp) in relation to BPCl's off-market takeover bid for all the ordinary shares in Goodman Fielder Limited. We attach, pursuant to paragraph 630(5)(b) of the Corporations Act, the notice required by subsection 630(3) of the Corporations Act in relation to the status of defeating conditions. B JOLLEY J MANNOLINI BPC1 PTY LIMITED (ABN 45 101 665 918) COMPANY NOTICE - SUBSECTION 630(3) CORPORATIONS ACT 2001 NOTICE OF STATUS OF DEFEATING CONDITIONS To: Goodman Fielder Limited (Goodman Fielder); and Australian Stock Exchange Limited. For the purposes of subsection 630(3) of the Corporations Act 2001, BPC1 Pty Limited (BPC1) (a wholly owned subsidiary of Burns, Philp & Company Limited - ASX code: BPC gives notice, in relation to its offers for all the ordinary shares in Goodman Fielder (offers), that: (1) The defeating conditions to its offers set out in sections 9.6(a), 9.6(b), 9.6(c), 9.6(d) and 9.6(e) of its bidder's statement dated 19 December 2002, have been fulfilled; (2) Its offers have been freed from the defeating conditions set out in sections 9.6(f), 9.6(g), 9.6(h), 9.6(i), 9.6(j) 9.6(k), 9.6(l), 9.6(m), 9.6(n), 9.6(o), 9.6(p), 9.6(q) and 9.6(r) of its bidder's statement dated 19 December 2002; (3) Its offers are no longer subject to any defeating conditions; and (4) As at the date of this notice, its voting power in Goodman Fielder is 60.69%. TELEVISION & MEDIA: Says Restructuring Almost Complete ------------------------------------------------------ Television & Media Services is now in the final stages of its restructuring efforts, says Shaw Online. "The consolidated entity is in the final phase of its restructure and re-capitalization program. Providing the non- associated shareholders vote in favor of the resolutions to be put at the general meeting scheduled for 15 April 2003 the directors anticipate that the restructure and re-capitalization will be successfully completed," a company statement said Friday. According to Shaw Online, the company unveiled its restructuring plan in October last year. The plan saw the transfer of the cinema advertising business to creditors, namely the cinema exhibitors Hoyts, Greater Union and Village in exchange for the release of cinema rent payables (both current and future liabilities). The move left the Company solely focused on the global television business. It also cost CEO Bruce Fink's job. The company reported Friday a loss of AU$40.2 million for the first half, including a AU$27.7 million writedown relating to assets held by its subsidiary, Global Television Ply Limited. ================================ C H I N A & H O N G K O N G ================================ BROADWAY SEAFOOD: Hearing on Winding Up Petition Next Week ---------------------------------------------------------- Broadway Seafood Restaurant Company 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. Mau Yau Kan of 6/F., 3 Eastern Street, Sai Ying Pun, Hong Kong filed the petition on January 27, 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. EXCO GROUP: Winding Up Sought; Hearing Set for April 2 ------------------------------------------------------ The High Court of Hong Kong will hear on April 2, 2003 at 10:00 in the morning the petition seeking the winding up of The Exco Group of Companies Limited. Ho Wai Sing of Room 8, 1st Floor, Lai Wan House, Yuet Lai Court, 51 Lai Cho Road, Kwai Chung, New Territories, Hong Kong filed the petition on February 19, 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. HONG KONG: Engineering Firm Faces Winding up Suit in High Court --------------------------------------------------------------- Chan Pui Fung of Room 1705, Foo Wo House, Wo Che Estate, Shatin, New Territories, Hong Kong has petitioned the High Court of Hong Kong to wind up Hong Kong Hang Cheong Decoration Engineering Company Limited. The court will hear the petition on April 9, 2003 at 10:00 in the morning. Tam Lee Po Lin, Nina represents the petitioner, who filed the suit on February 26, 2003. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office on the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. J.A. HOLDINGS: Winding up Hearing Scheduled Early Next Month ------------------------------------------------------------ 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 J.A. Holdings Limited. Wo Hoi Hing of Room 706, Sui Lok House, Siu Sai Wan Estate, Chai Wan, Hong Kong filed the petition on February 26, 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. KING CORPORATION: Virgin Islands Firm Files Winding up Petition --------------------------------------------------------------- King Corporation Limited is facing a winding up petition before the High Court of Hong Kong, which will hear the case on March 26, 2003 at 10:00 in the morning. Dynamic Century Limited whose registered office address is P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands filed the petition on February 7, 2003. Chui and Lau represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Chui and Lau, which holds office at Room 42, 4th Floor New Henry House, 10 Ice House Street, Central Hong Kong. PASSPORT HONG KONG: To Contest Wind up Suit on April 2 ------------------------------------------------------ IPS Telecom Co., Limited, whose registered office is Room 1701, 17th Floor, The Centrium, 60 Wyndham Street, Central, Hong Kong, has petitioned the High Court of Hong Kong to wind up Passport Hong Kong Limited. The petition will be heard on April 2, 2003 at 9:30 in the morning. Foo and Li represents the petitioner, who filed the suit on February 14 this year. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Foo and Li, which holds office at Rooms 1001-4, 10th Floor New World Tower I, 18 Queen's Road Central Hong Kong. STABLE WIDE: High Court Sets Winding up Hearing on April 9 ---------------------------------------------------------- A petition seeking the winding up of Stable Wide Machinery Equipment Co. Limited is scheduled for hearing before the High Court of Hong Kong on April 9, 2003 at 9:30 in the morning. Bank of China (Hong Kong) Limited (the successor of all the undertakings of The Kwangtung Provincial Bank Limited by virtue of the Bank of China (Hong Kong) Limited (Merger) Ordinance, Cap. 1167) of 14th Floor, Bank of China Tower, No. 1 Garden Road, Central, Hong Kong filed the petition on February 25, 2003. Koo and Partners represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Koo and Partners, which holds office on the 21st-22nd Floors, Bank of China Tower, No. 1 Garden Road, Central Hong Kong. TAI SUN: Voluntarily Winds up Business; Hearing on April 16 ----------------------------------------------------------- Tai Sun Canvas Awning Company Limited has filed a petition seeking the winding up of its business. The High Court of Hong Kong will hear the petition on April 16, 2003 at 9:30 in the morning. Knights & Ho represents the petitioner, whose registered address is 1st Floor, No. 159 San Tau Kok, Tai Po, New Territories, Hong Kong. The petition was filed March 3, 2003. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Knights & Ho, which holds office on the 10th Floor, Ritz Building, 625 Nathan Road, Kowloon Hong Kong. TAK CHEUNG: Winding up Petition Set for Hearing 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 Tak Cheung Stainlessware Manufacturing Co. Limited. Kwok Tai Tim of Flat M, 37/F., Tower A, Clague Garden Estate, 22-30 Hoi Shing Road, Tsuen Wan, New Territories, Hong Kong filed the petition on February 26, 2033. 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. TOM.COM: Clarifies Newspaper Reports ------------------------------------ The Directors wish to clarify the Articles appearing in March 12, 2003 newspapers. Shareholders of TOM and the public investors are advised to exercise caution when dealing in the shares of TOM. This announcement is made at the request of The Stock Exchange of Hong Kong Limited. The directors of TOM.COM LIMITED refer to certain press articles appearing in March 12 newspapers regarding proposed acquisition of shareholding interest in China Entertainment Television Broadcasting Limited (the "Acquisition"). TOM is currently exploring investment opportunities in the broadcasting sector and wishes to confirm that TOM is exploring such opportunities with various independent third parties regarding possible acquisitions of broadcasting companies, including the Acquisition. Negotiation is at preliminary stage. However, no agreement has yet been reached (including the consideration) between the parties. Further announcement will be made if definitive agreement has been entered into. The terms of the Acquisition are being negotiated. If finalized, the Acquisition may constitute a notifiable transaction. Shareholders of TOM and the public investors are advised to exercise caution when dealing in the shares of TOM. By Order of the Board TOM.COM LIMITED Angela Mak Company Secretary Hong Kong, 12th March, 2003 WINNER HOLDINGS: Fu Tak Plastic Seeks Winding Up of Firm -------------------------------------------------------- Winner Holdings (HK) Limited faces a winding up petition, which is scheduled for hearing before the High Court of Hong Kong on April 2, 2003 at 9:30 in the morning. Fu Tak Plastic Products Co., Limited whose registered office is located on the 4th Floor, Block B, Po Yip Building, 62-70 Texaco Road, Tsuen Wan, New Territories, Hong Kong filed the petition on February 10, 2003. Chui and Lau represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Chui and Lau, whose office is located at Room 42, 4th Floor New Henry House, 10 Ice House Street, Central, Hong Kong. ================= I N D O N E S I A ================= BANK DANAMON: IBRA to Name Five Bidders Thursday ------------------------------------------------ The shortlist of bidders for the government's 51% stake in PT Bank Danamon Indonesia will be released Thursday, according to Indonesian Bank Restructuring Agency Chairman Syafruddin Temenggung. Dow Jones says the list only contains five consortia. This falls short of the government's earlier expectation of at least 17 bidders. Analysts say this underlines the difficulty of getting investors interested in Indonesian assets at this time. The five bidders, however, are considered heavyweights and this, at least, is encouraging, analysts say. Included in the shortlist are Singapore's Temasek Holdings and Deutsche Bank, HSBC, local Bank Artha Graha and cigarette maker PT Gudang Garam. Bhakti Investama, a local investment bank, is involved with two other bids, although the names of these are unknown and it's not clear if they will be on Thursday's shortlist, Dow Jones says. The five bidders will now conduct due diligence on Bank Danamon's books before making formal offers to IBRA in the next couple of months. "We will meet with the investors prior to the announcement day (Thursday)," Mr. Temenggung told reporters. He said there are some requirements that IBRA will discuss with the investors on how they will acquire Bank Danamon. "For instance, they will have to explain to me where they'll get the money from to buy the bank," he added. He said the investors must also express a commitment to develop Bank Danamon and they must act on behalf of their own company. "We (IBRA) are not going to accept if they are acting as special purpose vehicles or nominees," Mr. Temenggung was quoted by Dow Jones as saying. The sale of Bank Danamon is crucial to filling the gap in the government's widening budget deficit. Formerly owned by Indonesian businessman Usman Admadjaja, a property and finance tycoon, IBRA took over the bank after the 1997-98 Asian financial crisis. The agency also plans to sell a 20% stake in the bank through the market, Dow Jones says. ========= J A P A N ========= DAIEI INC.: Creditors Provides Y40B Aid Package ----------------------------------------------- UFJ Bank and other main creditors are planning to provide a financial aid package of 40 billion yen to Daiei Inc.'s subsidiary Fukuoka Daiei Real Estate Inc., the Nihon Keizai Shimbun and Nikkei reported on Saturday. Fukuoka Daiei's operations are made up of the Fukuoka Daiei Hawks professional baseball team, the Fukuoka Dome and a nearby hotel. The unit also operates the dome and the hotel. The move aims to reduce the unit's interest-bearing debt from the current 130 billion yen to 60 billion yen, and then transfer its operations to non-Daiei firms. Thus, the real estate firm will be excluded from Daiei's consolidated accounting. Other lenders are Bank of Fukuoka, Sumitomo Mitsui Banking Corp., Mizuho Corporate Bank, Fukuoka City Bank and Nishi-Nippon Bank - and Fukuoka Daiei Real Estate will by this summer apply for the use of creditor-led workout guidelines. DAIEI INC.: Selling Fukuoka Dome -------------------------------- Ailing retailer Daiei Inc. is set to sell unprofitable Fukuoka operations by selling the Fukuoka Dome baseball stadium and the adjacent Seahawk Hotel & Resort, but will continue to hold its stake in the Fukuoka Daiei Hawks professional baseball club, Kyodo news said on Saturday. The supermarket chain operator has drafted a plan to reorganize its Fukuoka operations, which mainly involve the management of the baseball stadium, the hotel and the baseball club. The operations have a combined 130 billion yen in debts. JAPAN AIRLINES: Face Lawsuit For Alleged Safety Breaches --------------------------------------------------------- Japan Airlines is facing a multi-million dollar lawsuit over allegations that it broke aviation safety rules by allowing pilots to fly while sick, AFP Online reported Wednesday. The flagship carrier denies the allegations but Captain Jack Crawford and Martin Ventress, a flight engineer, claim a co- pilot was permitted to fly two planes packed with passengers despite losing consciousness at the controls several times. Jeff Bicknell, the co-pilot, who was allegedly carried out of the cockpit twice during one JAL flight, was diagnosed with a brain tumor. Japan Airlines System Corporation, the holding Company for Japan Airlines (JAL) and Japan Air System (JAS), will start its fiscal 2003 management plan on April 1, according to The Troubled Company Reporter-Asia Pacific. The plan features the operation of JAL flights over most key domestic routes. Local flights will be operated primarily under the JAS brand. The airline will also increase operations between Fukuoka and Shanghai, and JAS's withdrawal from the Narita-Seoul route. The TCRAP reported in June that Japan Airlines Co Ltd (JAL) would redeem its 17-year exchangeable corporate bonds issued on December 13, 1987 ahead of the bonds' redemption date of March 31, 2005, in view of the approaching joint venture with Japan Air System in October 2002. As of June 18, 2002, a total of 18.664 billion yen worth of bonds have not yet been redeemed. JAL issued a total of 25 billion yen of exchangeable bonds carrying a coupon of 1.6 percent. KINKI NIPPON: Likely to Promote VP Yamaguchi to President --------------------------------------------------------- Kinki Nippon Railway Co. is planning to promote Vice President Masanori Yamaguchi to President, replacing Akio Tsujii, who will become Chairman, Japan Times reports. Chairman and Kintetsu Buffaloes owner Wa Tashiro will become an adviser on the board of directors. The appointments are to be finalized at a board meeting following a Company shareholders' meeting in late June. According to Rating and Investment Information, Inc. (R&I), the earning potential of Kinki Nippon Railway Co., Ltd.'s leisure business and other peripheral operations is poor, and it is also difficult to envision an upturn in the operating environment in these spheres. Kintetsu's rating therefore strongly reflects operational risks associated with these peripheral operations. Only a handful of the properties in its hotel operations, which consist of a chain developed as the Miyako Hotels & Resorts, are in the black, and its Shima Spain Village is also struggling. Furthermore, the scale of assets of Kintetsu's overall real estate operations, including the former Kintetsu Real Estate Co., Ltd., became bloated due to an upswing in unprofitable properties. ORIENT CORP.: Mizuho Corporate Bank Extends Support to Firm ----------------------------------------------------------- Standard & Poor's Ratings Services said Monday that the recent announcement by Mizuho Corporate Bank Ltd. (BBB/Negative/A-3) to provide financial aid to Orient Corporation (Orico) would have only a limited impact on its rating on the bank. The bank said it would purchase 150 billion yen of Orico preferred shares as part of a restructuring plan announced by Orico last week. Since Orico will sell its subsidiary, Nippon Home Finance Co. Ltd., Mizuho Corporate Bank will incur credit costs for loans to the company. However, the bank's costs relating to the financial support are within Standard & Poor's expectations and will not lead to an immediate rating action. Orico's restructuring scheme is designed to restore the health of its assets, and is expected to contribute to an improvement in Orico's financial condition to some extent. However, Orico had about 2 trillion yen in debt on a consolidated basis, as of the end of March 2002, 1.5 trillion yen of which was short-term debt. Therefore, Orico's creditor banks may be asked to provide additional support. Mizuho Corporate Bank provided 200 billion yen in financial support to Orico in August 2002 through a purchase of preferred stock. TOHATO INC.: Enters Civil Rehab Proceedings ------------------------------------------- UFJ Holding announced that, concurrent with the filing for the start of civil rehabilitation proceedings with the Tokyo District Court by Tohato Inc., there is possibility of non collection and/or delayed collection of the exposure extended to the Company by UFJ Bank Limited and UFJ Trust Bank Limited, wholly owned subsidiaries of UFJ Holdings, Inc. 1. Amount of exposure to the Company UFJ Bank Limited: Yen 24,073 million UFJ Trust Bank Limited: Yen 6,175 million 2. Impact on earnings of UFJ Holdings Concurrent with this announcement, there is no change to our forecasts of earnings for the current fiscal year, which have already been announced. * Delays in Stock Disposals May Pressure Bank Ratings, S&P ---------------------------------------------------------- Standard & Poor's Ratings Services (S&P) said its ratings on Japan's major banks could come under downward pressure if the government's economic package released on Wednesday delays the banks in disposing of their large stock holdings. The economic package unveiled by the Financial Services Agency (FSA) on March 13, 2003, aimed at stabilizing the stock market is unlikely to reduce risks stemming from the banks' stock portfolios. Selling stock to the government's purchasing agency or Bank of Japan is not a straightforward solution, as these institutions impose restrictions on the type of issues and amounts they can purchase. In addition, according to the FSA's package, the banks are required to consider the impact of their stock sales on the domestic market. "Standard & Poor's ratings are based on the assumption that banks can reduce the size of their stock portfolio in line with their projections to a large extent. If there is a delay in their progress, this could create downward pressure on their ratings," said Ms. Nana Otsuki, a director at Standard & Poor's in Tokyo. The Japanese stock market fell dramatically this week, with the TOPIX recording a low of 770.62, down by 9 percent from the end of March 2002 and by 18 percent from the end of September 2002. This fall has expanded evaluation losses for the mega bank groups by 2 trillion yen, which is almost equivalent to the total new capital the groups are currently seeking to raise. The capitalization of Japan's mega bank groups is already much weaker than that of their international peers. The average Tier 1 capital ratio of U.S. money center banks stood at 8.33 percent as of December 2002, while the ratios of the Japanese bank groups are expected to range between 4.5 percent-6 percent at the end of March 2003, based on the banks' forecasts in January. "S&P incorporates in its ratings the risk of price fluctuation in stock holdings, given their highly volatile nature, and short-term fluctuations in stock prices do not lead to immediate rating adjustments. For the Japanese banks, their progress, albeit gradual, in disposing of stock holdings has so far mitigated the impact of price falls on their capital," Ms. Otsuki said. Although S&P does not consider a bank's regulatory capital ratio as a comprehensive indicator of its capital strength, as the ratio includes a large proportion of debt-type capital such as preferred securities, any suggestion that a bank could fail to meet its requirements would result in deterioration in market confidence in the bank. However, estimates indicate that unless stock prices fell by 40 percent from the price at closing on March 11, most major banks will achieve the regulatory minimums. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Invests $100M in U.S. Plant ------------------------------------------------ Hynix Semiconductor Manufacturing America HSMA, the U.S. subsidiary of Hynix Semiconductor Inc. of Korea, announced Thursday that it is launching a $100 million upgrade to its DRAM fabrication facility in Eugene, Oregon. "We at HSMA are proud that our parent company has committed to keeping the Eugene facility at the cutting edge of semiconductor manufacturing technology," Jerold Olson, a Hynix spokesperson stated. "This upgrade will assure that our Oregon facility continues to compete at the highest levels of the global semiconductor market. It sends a strong message about Hynix's confidence in the future of the industry and the company." Hynix has invested over $1.6 billion to date in the Eugene, Oregon facility, which manufactures 256 SDRAM and DDR. These semiconductors are used in a wide variety of products. HSMA employs over 850 individuals at the Eugene facility, along with 170 contract workers. HSMA is one of the top private employers in Oregon. "We at HSMA are sensitive to the fact that when we take into account the direct and indirect employment effects of our operations, we are responsible for the jobs of literally thousands of Oregonians," Mr. Olson continued. "At a time of economic uncertainty, secure, well-paid jobs are the greatest benefit we can bring to Eugene, Oregon, and America. In turn, our employees and their communities have been responsible for the great success of our U.S. operations. This is truly a `win- win' investment. HSMA and Hynix are doing our utmost to continue this success story long into the future, and we appreciate the continuing support we have received from our elected officials. Hynix and HSMA are proud to be building a better future for our company and our employees in Oregon." Unlike previous upgrades to the Eugene, Oregon facility, production will continue at the site and will not affect current employees and operations. According to Farhad Tabrizi, Vice President of Worldwide Marketing, the result of the upgrade to "PrimeChip" technology will result in a production increase of more than 50%. "We anticipate a smooth transition in the adoption of .13 micron technology which will provide HSMA with optimum technology to continue to effectively supply 256M DRAMs to the market. We expect the new HSMA product will primarily serve our U.S. customer base for use in high end applications specially in the server market. For a copy of the press release, go to http://www.hynix.com/eng/index.html HYNIX SEMICON: Kumho Electric Cancels Contract With Chipmaker ------------------------------------------------------------- Kumho Electric Inc. has withdrawn from a contract to purchase Hynix Semiconductor Inc.'s assets in Imagequest, two days after the chipmaker said it will sue GB Synerworks for damages over the delayed sale of its assets in ImageQuest to Kumho, Asia in Focus reports. Hynix said it would sell all of its assets in ImageQuest, a leading display panel manufacturer, to a GB Synerworks-led consortium for 45 billion won (US$37.3 million). The news comes as a blow to the debt-ridden Hynix. DebtTraders reports that Hyundai Semiconductor's 8.625 percent bond due in 2007 (HYUS07KRA1) trades between 60 and 65. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=HYUS07KRA1 HYNIX SEMICONDUCTOR: Launches First Applicable Ferroelectric RAM ---------------------------------------------------------------- Hynix Semiconductor Inc. recently announced the successful introduction of its commercially applicable FeRAM (Ferroelectric RAM), a non-volatile, low power, high-density and high speed memory ideal for next-generation mobile and SoC (System on Chip) applications. Introduced in 4Mb and 8 Mb densities and manufactured on Hynix's advanced .25um process technology, the FeRAM samples operate at 3.0-Volts with data access time of 70 nanoseconds and are capable of 100 billion read/write repetitions. Unlike existing products that are composed of two transistors and two capacitors, FeRAM achieves mega-level density by adopting a one transistor, one capacitor (1T1C) cell structure and can operate on lower than 1.0-Volt, exceeding traditional FeRAM's limitations. In addition, by applying new circuit concepts and ferroelectric materials BLT (Bismuth Lanthanum Titanate), Hynix has dramatically improved FeRAM's stability and device reliability while shrinking its die size. Using the newly developed technology, FeRAM is expandable to 64Mb without additional development costs. Hynix expects FeRAM to be the main memory product in embedded applications. The 4 and 8 mega FeRAM opens the door to higher performing 64 mega-level products which Hynix plans to develop and mass produce. Hynix plans to firmly establish its presence in the future FeRAM market. Hynix has applied for more than 150 US patents for FeRAM Technologies. The company expects rapid market penetration of FeRAM in mobile and multimedia applications including handsets, PDA's, smart phones and smart cards and projects the FeRAM market to reach 10 billion dollar scale by 2006. Hynix will present the details of its FeRAM technical features at the 15th ISIF (International Symposium on Integrated Ferroelectrics) Conference being held in Colorado Springs, Colorado, on March 10th. The press release, is located at http://www.hynix.com/eng/index.html HYNIX SEMICONDUCTOR: Accepts Executives' Resignations ----------------------------------------------------- Hynix Semiconductor Inc. has accepted the resignations of eight of the 40 executives in its memory chip operation as part of its restructuring scheme, Dow Jones reported Friday. The names of the executives were not mentioned in the report. About 50 Company executive resignations were announced last Thursday, following the resignation of President and Chief Executive Park Sang-ho. That leaves Woo Eui-je, Co-CEO and Chairman, to solely head the Company. Notably, Park Sang-ho's resignation came one day after shareholders approved a fresh bailout plan for the troubled DRAM maker. SK CORPORATION: Shareholders Protest Accounting Scandal ------------------------------------------------------- Shareholders of SK group's listed units, which held their annual shareholder meetings on March 14, lodged a strong protest over the recent accounting fraud scandal, according to Digital Chosun on Friday. They also called for the resignation of Chey Tae-won, the group's owner, who has been under arrest since late February for alleged fraud and other charges. About 350 shareholders participated in the shareholder's meeting on Friday, and several organizational investors and minority shareholders protested vehemently, demanding that the board members step down and that the management to buy back the firm's own shares. SK Corporation is the largest shareholder of SK Global, the key firm in the book-rigging scandal, and holds W1.5 trillion in sales due from SK Global. SK CORPORATION: Moody's Downgrades Rating to Ba2 ------------------------------------------------ Moody's Investors Service has downgraded the long-term rating of SK Corporation to Ba2 from Baa3. The rating remains on review for possible downgrade. The downgrade reflects the increased operating and cash flow uncertainty facing SK Corporation following the problems at its 38.7 percent owned associate SK Global. Recently SK Global disclosed significant profit overstatement due to accounting irregularities, and this has substantially impacted the company's liquidity and financial viability. As the trading arm of the SK group, SK Global maintains a significant trading relationship with SK Corporation. Moody's is concerned that creditor banks of SK Global may seek SK group companies, including SK Corp, to support obligations of SK Global. At the same time, Moody's is also concerned that, as the future of SK Global becomes increasingly uncertain, SK Corp could not easily replicate the marketing arrangements that were being fulfilled by SK Global without any disruption to its operations and liquidity profile. SK Corp has stated that it currently maintains a cash balance of around KRW 2.8, which can be used to support its short-term working capital needs and short-term debt repayment. However, Moody's is concerned that the potential for banks to withhold credit lines to SK Group, including SK Corp, will constrain the company's ability to effectively manage its ongoing working capital requirements. The Ba2 rating remains on review for possible downgrade, pending further clarification of the ramifications on its operating cash flow of the current problems surrounding SK Global. Any steps to provide support for SK Global could result in further rating downgrade. Moody's says that SK Corp continues to benefit from the company's position as South Korea's largest oil refining and marketing company, its strong domestic market share, and a degree of ongoing regulatory support for the domestic oil sector. In addition, the company's Ulsan refinery compares favorably to other refineries around the world in terms of operating efficiency. However, the company's relatively weak capital structure limits its ability to deal with the current circumstances surrounding SK Global. =============== M A L A Y S I A =============== BREM HOLDING: Claims it is Solvent; Says Wind up Suit Baseless -------------------------------------------------------------- Further to the announcement made on 12 March 2003 in respect of the Winding-Up Petition against Brem Holding Berhad, the Board of Directors of the Company hereby declare that the Company and the Group are solvent and are able to pay all debts and meet all financial obligations as and when they fall due. C.I. HOLDINGS: Issues New Shares to Settle Debts ------------------------------------------------ (1) INTRODUCTION On 20 December 2002, Commerce International Merchant Bankers Berhad ("CIMB"), for and on behalf of CIH, announced that the Company proposes to participate in a reorganisation scheme which involves CIH, Ayamas Food Corporation Bhd ("Ayamas") and KFC Holdings (Malaysia) Berhad ("KFCH") in various proposals to reorganise the group structure ("Proposed Reorganisation Scheme"), pursuant to which the Company proposed the following: (i) proposed disposal of the entire equity interest in C.I. Enterprise Sdn Bhd, a wholly-owned subsidiary of CIH ("CIE"), comprising 300,000 ordinary shares of RM1.00 each, by CIH to Newco, for a cash consideration of RM1.00 and the assumption of the corporate guarantee of RM198 million given by CIH to Alliance Bank Malaysia Berhad ("Proposed CIE Disposal"); (ii) proposed renounceable rights issue of 57,377,835 new ordinary shares of RM1.00 each in CIH ("Rights Shares") together with 57,377,835 free new detachable warrants ("Warrants") on the basis of one (1) Rights Share held and one (1) Warrant for every one (1) existing ordinary share of RM1.00 each in CIH ("CIH Share") held at a proposed issue price of RM1.00 per Rights Share ("Proposed CIH Rights Issue"); (iii) proposed acquisition of 51% equity interest in Permanis Sdn Bhd ("Permanis"), comprising 20,400,000 ordinary shares of RM1.00 each, by CIH from Urban Fetch Sdn Bhd, for a cash consideration of RM2.3 million and the assumption of liabilities amounting to RM34.42 million ("Proposed 51% Permanis Acquisition"); and (iv) proposed acquisition of the entire equity interest in Pep Bottlers Sdn Bhd, comprising 300,000 ordinary shares of RM1.00 each, by CIH from KFCH, for a cash consideration of RM35.28 million ("Proposed Pep Bottlers Acquisition"). The Proposed 51% Permanis Acquisition and Proposed Pep Bottlers Acquisition are collectively referred to as the "Proposed Acquisitions". On behalf of CIH, CIMB wishes to announce that, as part of the Proposed Reorganisation Scheme, the Company and Doe Industries Sdn Bhd, a wholly-owned subsidiary of CIH ("DISB"), have entered into a Debt Settlement Agreement ("DSA") with MAA on 14 March 2003 for the Proposed Debt Settlement. The Proposed Debt Settlement is conditional on the Proposed CIE Disposal, Proposed CIH Rights Issue and Proposed Acquisitions, but not vice versa. (2) DETAILS OF THE PROPOSED DEBT SETTLEMENT 2.1 Simultaneous with the Proposed Reorganisation Scheme, the Company proposes to settle the principal amount owing by DISB to MAA amounting to RM15,000,000 as at 28 February 2003 via the issuance of 14,851,485 new CIH Shares ("Settlement Shares") at an issue price of RM1.01 per Settlement Share. Other amounts owing (if any) by DISB to MAA, such as interest, commissions and other expenses (if any), will be settled by CIH, on behalf of DISB, in cash. 2.2 The amount owing by DISB arose pursuant to a facility agreement between MAA and DISB dated 3 June 2002 ("Facility Agreement") and such amount was scheduled to be repaid vide three (3) tranches i.e. RM5 million on 10 June 2003, RM2 million on 10 July 2003 and RM8 million on 16 December 2003. 2.3 The Proposed Debt Settlement is proposed to be implemented upon completion of the Proposed CIH Rights Issue, Proposed CIE Disposal and Proposed Acquisitions (collectively referred to as "Proposals"), which were announced on 20 December 2002. As such, the Settlement Shares will not be entitled to participate in the Proposed CIH Rights Issue. 2.4 The Company proposes to fix the issue price of the Settlement Shares upfront at RM1.01 per Settlement Share based on a premium of approximately 2.43% to the theoretical ex-rights price of approximately RM0.99 of CIH Shares after the implementation of the Proposed CIH Rights Issue based on the five (5)-day weighted average price ("WAP") of CIH Shares to 13 March 2003 (being the latest practicable date prior to this announcement) of approximately RM0.97 and an issue price of RM1.00 per Rights Share pursuant to the Proposed CIH Rights Issue. 2.5 Upon completion of the Proposed Debt Settlement, MAA has agreed to accept the Settlement Shares as full satisfaction of the principal amount owing by DISB of RM15,000,000. 2.6 As part of the DSA, MAA has also agreed that it shall waive its rights to enforce under the Facility Agreement and any other relevant agreements entered into between MAA and DISB in respect of the said debt wherein MAA shall, inter-alia, not take or commence or continue any legal action against CIH and/or its subsidiaries, to compel CIH and/or its subsidiaries to repay the amount owing by DISB or to enforce any of the securities held by it in respect of the said debt, from the period commencing from 9 June 2003 (being the date prior to the proposed payment of the first tranche of RM5 million on 10 June 2003 under the Facility Agreement) until the date of the issuance of the Settlement Shares to MAA ("Debt Conversion Date") or, if earlier, the termination of the DSA. The Debt Conversion Date shall be a date falling within six (6) months from the date all approvals required for the Proposed Debt Settlement (as detailed in Section 5 herein) have been obtained. 2.7 Interest (including any late payment interest) will continue to accrue on the amount owing to MAA until the Debt Conversion Date. However, interest accruing on the principal amount owing for the months following: (i) 30 June 2003; or (ii) the month in which the approvals as detailed in Section 5 herein are obtained; Whichever is later, will be capitalised and settled in cash after the Debt Conversion Date or, if earlier, the termination of the DSA. 2.8 MAA shall deliver or cause to procure its nominees to deliver the relevant discharge documents relating to the principal amount owing by DISB for the discharge of any third party charges and/or securities created on any land titles pursuant to the said debt and to secure the release of the relevant land titles for delivery to the respective subsidiaries of CIH within one (1) month after the Debt Conversion Date. 2.9 The Settlement Shares to be issued pursuant to the Proposed Debt Settlement shall, upon allotment and issue, rank pari passu in all respects with the existing issued and fully paid-up CIH Shares, save and except that they shall not be entitled to any dividends, rights, allotments and/or other distributions, the entitlement date of which is prior to the date of allotment of the Settlement Shares. (3) RATIONALE FOR THE PROPOSED DEBT SETTLEMENT (i) To provide full settlement of the principal amount owing to MAA of RM15 million; and (ii) To improve the cashflow position and reduce gearing of the CIH Group. (4) EFFECTS OF THE PROPOSED DEBT SETTLEMENT 4.1 Share Capital The effects of the Proposals (as announced on 20 December 2002) and Proposed Debt Settlement on the issued and paid-up share capital of the Company are illustrated in Table 1. 4.2 Net Tangible Assets ("NTA") and Gearing Based on the audited consolidated balance sheet of CIH as at 30 June 2002 and the assumption that the Proposals (as announced on 20 December 2002) and Proposed Debt Settlement are effected as at that date, the proforma effects of the Proposals and Proposed Debt Settlement on the audited consolidated NTA and gearing of the Company are illustrated in Table 2. 4.3 Earnings The Proposed Debt Settlement is expected to be completed after 30 June 2003 and therefore is not expected to have any effect on the earnings of the CIH Group for the financial year ending 30 June 2003. However, the Proposed Debt Settlement is expected to contribute positively to the earnings of the CIH Group in the future in terms of interest savings arising from the settlement of the principal amount owing to MAA. 4.4 Substantial Shareholders' Shareholding Based on the Register of Substantial Shareholders' Shareholdings as at 20 January 2003 and the assumption that the Proposals (as announced on 20 December 2002) and Proposed Debt Settlement are effected as at that date, the proforma effects of the Proposals and Proposed Debt Settlement on the shareholdings of the substantial shareholders of CIH are set out in Table 3 herein. 4.5 Dividends CIH declared a dividend of 0.7% less income tax at 28%, amounting to RM289,184, for the financial year ended 30 June 2002. The decision to declare and pay dividends in the future would depend on the performance, cashflow position and financing requirements of the CIH Group. (5) APPROVALS REQUIRED The Proposed Debt Settlement is subject to and conditional upon approvals being obtained from the following: (i) Securities Commission ("SC") for the: (a) Proposed Debt Settlement; and (b) listing of and quotation for the Settlement Shares on the Main Board of the Kuala Lumpur Stock Exchange ("KLSE"); (ii) KLSE for the listing of and quotation for the Settlement Shares on the Main Board of the KLSE; (iii) Foreign Investment Committee; (iv) Ministry of International Trade and Industry; (v) Bank Negara Malaysia or any other regulatory body or competent authority having jurisdiction over MAA; (vi) shareholders of CIH at an Extraordinary General Meeting ("EGM") to be convened; and (vii) any other relevant authorities. The Proposed Debt Settlement is conditional on the Proposed CIE Disposal, Proposed CIH Rights Issue and Proposed Acquisitions, but not vice versa. The Proposed Debt Settlement is also subject to approvals being obtained for the other proposals in the Proposed Reorganisation Scheme of CIH, Ayamas and KFCH as mentioned in the announcement dated 20 December 2002. Barring any unforeseen circumstances, the Proposed Debt Settlement is expected to be completed within six (6) months from the date of receiving all the approvals from the relevant authorities and/or parties. (6) DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTERESTS The Board of Directors ("Board") of CIH is not aware of any interests, direct or indirect, of any Directors, substantial shareholders or persons connected with the Directors and substantial shareholders in the Proposed Debt Settlement. (7) DIRECTORS' RECOMMENDATION The Directors of CIH, after careful deliberation on the Proposed Debt Settlement, are of the opinion that the Proposed Debt Settlement is in the best interest of the Company. (8) ADVISER CIMB and Newfields Advisors Sdn Bhd have been jointly appointed as Advisers for the Proposed Debt Settlement. (9) TIMING OF SUBMISSION TO THE SC Submission to the SC for the Proposed Debt Settlement is expected to be made within six (6) months from the date of this announcement. (10) STATEMENT IN RESPECT OF THE SC'S GUIDELINES The Policies and Guidelines on Issue/Offer of Securities issued by the SC states that a listed company is allowed to have full discretion to determine the issue price of the placement shares at a price fixing date to be determined after approval of the SC for the placement and that the securities must be placed out to placees within a period of five (5) market days from the price fixing date of the placement. The Company will be seeking a waiver from the SC to allow it to fix the issue price of the Settlement Shares upfront, prior to the approval of the SC for the Proposed Debt Settlement and that the Settlement Shares be allowed to be issued on the Debt Conversion Date which is a date more than five (5) market days from the price fixing date for the Proposed Debt Settlement. Save for the aforementioned, to the best knowledge and belief of the Board, the Proposed Debt Settlement is not expected to depart from the SC Guidelines. (11) DOCUMENTS FOR INSPECTION The DSA for the Proposed Debt Settlement dated 14 March 2003 is available for inspection at the registered office of CIH at 10th Floor, Tower Block, Kompleks Antarabangsa, Jalan Sultan Ismail, 50250, Kuala Lumpur during normal business hours from Mondays to Fridays (except public holidays) for a period of three (3)- months from the date of this announcement. GENERAL LUMBER: Replaces PricewaterhouseCoopers as Auditor ---------------------------------------------------------- We wish to inform the Exchange that the Company's EGM was held as follows: Date : 14 March 2003 Time : 10.00 a.m. Venue : Level 9, Wisma General Lumber, Block D, Peremba Square, Saujana Resort, Section U2, 40150 Shah Alam, Selangor Darul Ehsan CHANGE OF AUDITORS "THAT the resignation of Messrs PricewaterhouseCoopers as Auditors of the Company be and is hereby accepted and in place thereof Messrs BDO Binder, Chartered Accountants, be and are hereby appointed Auditors of the Company for year ending 31 December 2002 and to hold office until the conclusion of the next Annual General Meeting and that authority be and is hereby given for the Directors to determine their remuneration." MALAYSIAN PLANTATIONS: Seeks Approval for RM150M Notes Issue ------------------------------------------------------------ On behalf of Malaysian Plantations Berhad, Alliance Merchant Bank Bhd is pleased to announce that further to the announcement on 28 January 2003, an application in respect of the RM150.0 Million Underwritten Commercial Papers / Medium Term Notes has been submitted to the Securities Commission Friday, March 14, 2003. MBF HOLDINGS: Appoints Administrators for Two Aussie Units ---------------------------------------------------------- MBf Holdings Berhad (MBfH) would like to inform the Exchange that its ultimate wholly owned subsidiaries namely MBfI Resorts Pty Limited (MBfIR) and Wirrina Resort Pty Ltd (Wirrina) in Australia have appointed Messrs Richard Albarran and Robert Elliot of Hall Chadwick Chartered Accountants as Administrators of the respective company. Wirrina is a wholly owned subsidiary of MBfIR. The principal activity of MBfIR is that of property investment and development whilst Wirrina is involved in resort operations. Append below is the content in relation to the appointment of Administrators: (a) The date of appointment was on 12 March 2003; (b) The Administrators namely Messrs Richard Albarran and Robert Elliot are from Hall Chadwick Chartered Accountants & Business Advisers situated at Level 29, 31 Market Street, Sydney NSW 2000; (c) The Administrators were appointed after reviewing the financial records where an opinion was formed that these companies were likely to become insolvent at some future time and after consultation and advice of the lawyers in Australia. In addition, the companies were not able to comply with the requirements of the Australian Corporation Act 2001 to have at least a resident director as there were no willing replacement; (d) The terms of reference of the Administrators are based on the Australian Corporation Act 2001 where all powers will be conferred on them under the Act. The Administrators are required to hold a first meeting of creditors within five business days of their appointment and the said meetings are scheduled for 19 March 2003; (e) There are no material financial and operational impact of the aforesaid appointment to the MBfH Group; (f) There shall be no material effects on the business operations on MBfH; (g) MBfH has concurred with recommendation of the Australian lawyers on the appointment of the Administrators; and (h) The role of the board of directors of both companies has ceased and the complete operation has now been handed over to the Administrators. ===================== P H I L I P P I N E S ===================== BENPRES HOLDINGS: Ready to Sell BayanTel, MNTC ---------------------------------------------- Except for its interests in the power and media businesses, Benpres Holdings Corporation is ready to sell its non-core assets namely BayanTel and Manila North Tollways Corp. (MNTC) to raise more capital for its balance sheet rebuilding, the Philippine Star reports. On February 7, the financial closing and drawdown on the MNTC project worth about $261 million was achieved, raising the prospects of project completion by early 2005. MNTC is a tollway venture 20 percent owned by the Philippine National Construction Corporation (PNCC) and 67 percent by Benpres subsidiary First Philippine Infrastructure Development Corporation (FPIDC). Benpres Chairman Oscar Lopez said they are also "prepared to entertain any offers in BayanTel" but added there are no proposals yet, taking into account BayanTel's heavy debts as well as the stiff competition in the local telecommunications sector. Benpres aims to restructure BayanTel's $210 million debt, mainly arising from the convertible preferred shares issuance of which two-investor groups, the Asian Infrastructure Fund of the AIG Group and the JP Morgan - Chase Manhattan, demanding for their respective payments. CEBU PLAZA: Ceasing Operations March 15 --------------------------------------- Cebu Plaza Hotel (CPH), a resort hotel in Cebu City, will end its operations on March 15 due to business losses and heavy debt burden, Sun Star Cebu Daily reports. It is now up to Metrobank, which will own the hotel starting Saturday, whether it will continue to operate even after Pathfinder gives it up. Cebu Plaza comprises the 22-story Plaza Tower and three-story Plaza Club, for a total of 383 rooms and extensive sports and recreational facilities for adults and children. According to The Troubled Company Reporter-Asia Pacific, CPH's owner, Pathfinder Holdings Philippines Inc. (PHPI), used the hotel as collateral for PHPI's dollar-denominated loan, which was then equivalent to 300 million pesos. The value of the dollar when the debt was incurred was still 27 pesos. At present, the dollar is already 54.20 to the peso. The peso's devaluation more than doubled PHPI's debt to 700 million pesos and the interest to 200 million pesos, the report said. MANILA ELECTRIC: Seeking Mediation for Supply Dispute ----------------------------------------------------- Manila Electric Co. and state-owned National Power Corporation have agreed to seek mediation to settle a long-running dispute over their 10-year supply agreement, reports the Business World, citing Power Sector Assets and Liabilities Management Corp (PSALM) President Edgardo del Fonso. The report said the parties have yet to agree on who should act as the mediator. PSALM is a unit of Napocor, which has imposed monetary penalties on Meralco for buying less power from Napocor than what is stipulated in their supply contract. Meralco has been sourcing some of its power requirements from its affiliates. ================= S I N G A P O R E ================= CHARTERED SEMICONDUCTOR: Issues Clarification on Media Article -------------------------------------------------------------- With reference to the Bloomberg article "Chartered Semiconductor Needs Additional Financing for 2004" dated 14 March 2003, Chartered Semiconductor Manufacturing Ltd. (CSM) would like to make the following clarification: The Company have stated the following in its regulatory filing (Form 20-F, 2002): "For the year 2004, CSM will require additional financing in order to complete our capital expenditure and research and development expenditure projects currently in progress and contemplated and to meet our working capital needs." Accordingly, the above statement referring to the additional financing encompasses not only current but also contemplated projects. The Company contemplated projects are market dependent and if the market conditions do not support our projects, CSM may not require additional financing in 2004. Based on the Company's current expectations and current cash balance, CSM have sufficient funds for Chartered's capital expenditure in 2003 and going into 2004 as previously indicated. Chartered's announced capital expenditure for 2003 is US$275 million. FLEXTECH HOLDINGS: Divestment of Interest in Subsidiary ------------------------------------------------------- The Board of Directors of Flextech Holdings Limited announced that FE Global Electronics Pte Ltd FEG, a wholly-owned subsidiary of the Company, has entered into a sale and purchase agreement with Myung Hwan Yang dated 30 September 2002 Sale Agreement in relation to the sale by FEG of its entire 85 percent shareholding represented by 425,000 ordinary shares of Australian Dollars 1 each (the Sale) Shares in the capital of Electec Australia Pty Ltd Electec Australia to Mr Myung Hwan Yang (the Sale). Electec Australia, a Company incorporated in Australia, is engaged principally in the sale and distribution of, and acting as commission agents for, electronic components and products and computer peripherals. Under the terms of the Sale Agreements, the total consideration for the Sale Shares is A$50,000 and was arrived at on a willing buyer and willing seller basis and is payable by installments. The net tangible asset value of the shares of Electec Australia as at 30 November 2003 is A$170,521. The selling price was agreed after taking into account further provisions for inventory amounting to A$120,521. Upon the transfer of the Sale Shares, Electec Australia will cease to be a subsidiary of the Company. All existing inter- Company loans due to FEG will be repaid by Electec Australia in installments. The Sale Agreement is not expected to have a material effect on the earnings and net tangible asset per share of the Flextech Group for the financial year ending 31 December 2002. None of the Directors or controlling shareholders of Flextech has declared to the Company that they have any interest, direct or indirect, in the above transaction. A copy of the Sale Agreement will be made available for inspection at the Company's registered office at 10 Collyer Quay #19-08 Ocean Building, Singapore 049315 for a period of 3 months from the date of this announcement. On 23 September 2002, Flextech Holdings Limited (FHL) announced that it is undertaking a comprehensive review and restructuring of the business, operations and borrowings of the Company, its subsidiaries and its principal associated companies (FHL Group). As one of the initiatives of the said restructuring, additional and/or replacement loan facilities for the FHL Group's working capital requirements (the New Lendings) are to be secured. FE Global Electronics Pte Ltd FEG and three of its subsidiaries (collectively, the FEG Group) are FHL Group entities for which the New Lendings are to be secured. FEG is the principal operating subsidiary of the Company. PRESSCRETE HOLDINGS: Unveils Housing Township Project in India -------------------------------------------------------------- In Presscrete Holdings Ltd.'s circular dated 27 December 2002, it was mentioned that a prospective project was pursued in India. The prospective project in Andra Pradesh, India under the leadership of Cesma International Pte Ltd, a wholly-owned subsidiary of Housing and Development Board has crystallized into a $70 million Housing Board-style township project (Project) of which the Company's wholly-owned subsidiary, Neocorp Innovations Pte Ltd has a 25 percent share. The Project is expected to contribute positively to the turnover and earnings of the Group and will be completed in 20 months from March 2003. None of the directors or controlling Company shareholders has any direct or indirect interest in the above Project. The Troubled Company Reporter-Asia Pacific reported that Presscrete Holdings Limited posted a net loss of S$1.302 million in the first half of 2002 from 3.254 million a year earlier due to lower interest charges arising from the deconsolidation of unit Ceramic Technologies Pte Ltd's debts. Ceramic Technologies was placed under judicial management in January 2002. REED GROUP: Issues Profit Warning --------------------------------- The Board of Directors of Reed Group Holdings Ltd would like to refer to the announcement of the Company's Half Year Financial Statement and Dividend Announcement made on 9 September 2002 whereby the Directors stated that the Company "anticipates that it will be in a loss situation for the full year to 31 December 2002". In view of the prolonged economic uncertainties, the Directors of the Company have, on grounds of prudence and in consultation with an external professional valuer and the Company's auditors, written down the Company's Intellectual Property and Development costs and intangible assets. This decision was taken in recognition of a further impairment loss in the value of the Company's assets as of 31 December 2002 and will have a significant adverse impact to the financial results for the second half of FY2002. For the year ended 31 December 2001, the Company wrote down the value of its Intellectual Property and Development costs by S$2.8 million. In addition, the Group has suffered an operating loss for the year ended 31 December 2002, that will further add to the adverse impact to the financial results of FY2002. The Directors will provide an update of the business prospects of the Group when the Group reports its Full Year results in late-March 2003. SEATOWN CORPORATION: EGM Set For April 2 ---------------------------------------- Notice is hereby given that an Extraordinary General Meeting (EGM) of the shareholders of Seatown Corporation Limited (JUDICIAL MANAGER APPOINTED) will be held at The Conference Room, 20 Maxwell Road, #02-01 Maxwell House, Singapore 069113 on 2 April 2003 at 11.00 a.m. for the purpose of considering and, if thought fit, passing the following resolution with or without any modification: AS ORDINARY RESOLUTION CHANGE OF AUDITORS That the resignation of Messrs Deloitte & Touche as auditors of the Company be and is hereby accepted with immediate effect and that Messrs TKH & Company, Certified Public Accountants are hereby appointed auditors of the Company in place of Messrs Deloitte & Touche and to hold office until the conclusion of the next Annual General Meeting at a fee to be agreed with the directors. =============== T H A I L A N D =============== SRITHAI SUPERWARE: Announces Dividend Payment, AGM Date Info ------------------------------------------------------------ The Board Meeting no. 3/2546 held on Friday 14 March 2003 passed the following resolutions: (1) To call for a general meeting of shareholders no. 22 which is the ordinary annual meeting of the year 2002, to be held on Tuesday 29 April 2003 at 14.00 hrs. at Function Room of Bangkok Marriott Resort & Spa. The hotel is located at 257/1-3, Charoennakorn Road, Kwaeng Bukkalo, Khet Thonburi, Bangkok 10600. Share registration book will be closed at 12.00 hrs. on 10 April 2003 until 17.00 hrs. on 29 April 2003 so as to determine the right to attend the meeting. (2) Unanimously resolved that the following agendas being followed in the general meeting of shareholders on 29 April 2003: 2.1 To adopt the minutes of extraordinary meeting of shareholders no. 1/2545, held on 21 August 2002; 2.2 To report by the Board to shareholders about operation result of the Company for the past year; 2.3 To approve Balance Sheets and Income Statements for the year ended 31 December 2002 as audited by the auditors; 2.4 To approve appropriation of profit for the year 2002. The Board opines that dividend should not be declared from the operation result of the year 2002 due to the Company being just recently released from the reorganization plan on July 15, 2002 and the economic condition still being uncertain; 2.5 To appoint external auditors and their remuneration for the year 2003; 2.6 To amend Article no. 8 (buying treasury stock) and no. 14 (change of term in office of the Board) in the Articles of Association of the Company; and 2.7 To appoint Directors in place of those who have completed their term in office, and their remuneration. 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 ***