/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/030728.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, July 28, 2003, Vol. 6, No. 147 Headlines A U S T R A L I A MAYNE GROUP: Confirms Rumored Divestment of Hospitals Division MAYNE GROUP: Observers Expect Sale of Hospitals Division MAYNE GROUP: St. John Denies Interest in Loss-making Hospitals MCCONNELL DOWELL: Shareholders Approve Schemes of Arrangement POWERTEL LIMITED: Takeovers Panel Junks Roslyndale Petition WATER WHEEL: ASIC to Enforce Compensation Orders vs. Ex-Director WATTLE GROUP: Anscor Manager Sentenced for Role in Failed Scheme C H I N A & H O N G K O N G ASIA GROUP: Court to Hear Winding up Petition August 20 CITIDEVELOPMENT HONG: Hearing of Winding Up Petition Set REALINK INTERNATIONAL: Winding Up Hearing Set August 27 RICHMOND GARMENT: Faces Winding Up Petition in High Court SHANGHAI LAND: Chairman, Wife Face HK$651M Embezzlement Suit SINORICH KITCHENWARE: Bank of China Files Winding Up Petition I N D O N E S I A BAHANA PEMBINAAN: Repays US$17M Debt with Land in West Java J A P A N MATSUI SECURITIES: Online Brokerage Returns to Profit MITSUBISHI MOTORS: JCR Places Rating Under Credit Monitor MITSUBISHI MOTORS: Issues Revised Business Outlook For 2003 MITSUBISHI MOTORS: Launches New R&D Facility in Australia NISSHO IWAI: Integrating Logistics Subsidiaries RESONA HOLDINGS: Liquidates Two Non-bank Affiliates RESONA HOLDINGS: Needs to Sell All Stockholdings, Says Yanai HYUNDAI MOTOR: Incurs US$1B Loss Due to Strike HYUNDAI MOTOR: Local Sales, Exports Hurt by Strike SK GLOBAL: Receivership Expected in Two Weeks M A L A Y S I A BERJAYA SPORTS: Purchases 8% Unsecured Loan Stocks CHASE PERDANA: Issues Debt Restructuring Scheme Proposal EMICO HOLDINGS: Posts Restructuring Scheme Update FW INDUSTRIES: Winding Up Hearing Set For January 24 GEAHIN ENGINEERING: Extends Negotiation Period With MGSB, MKK HARRISONS TRADING: Appoints Provisional Liquidator KSU HOLDINGS: Unit Files Winding-up Petition PAN PACIFIC: BDO Binder Carries Out Investigative Audit RNC CORPORATION: Extends Moratorium Period to Next Year SITT TATT: Terminates Share Sale Agreement With MISL P H I L I P P I N E S BANK STO. TOMAS: PDIC Issues Liquidation Notice MANILA ELECTRIC: Sees Profit in Second Quarter NATIONAL POWER: Transfers Pinamucan Power Barge to Leyte NEGROS NAVIGATION: Needs P600M to Restructure RURAL BANK OF TUY: Posts Key Dates Related to Insurance Claims TIBAYAN GROUP: SEC Prohibits PSE Members From Trading Stocks UNITED COCONUT: New President Unveils New Vision S I N G A P O R E CK TANG: German Bank Sues Retailer For S$1.7M FLEXTRONICS INTERNATIONAL: Widens 1Q03 Net Loss to S$289.7M T H A I L A N D THAI MILITARY: Fitch Affirms 'BB-' Foreign Currency Rating THAI MILITARY: Capital Raising Unaffected by ANZ Bank Walkout THAI PETROCHEMICAL: PTT Not Interested in Merger for Now - - - - - - - - ================= A U S T R A L I A ================= MAYNE GROUP: Confirms Rumored Divestment of Hospitals Division -------------------------------------------------------------- During the past nine months Mayne has received enquiries regarding sale opportunities in relation to its Hospitals business. Mayne has no financial or operational necessity to enter into any sale arrangements for its Hospitals division. Mayne has previously indicated that it is committed to a turnaround strategy for its Hospitals, which in the first half of the 2003 financial year showed a substantial increase in operating margins on the previous six months. On 2 June 2003, Mayne informed the Australian Stock Exchange that this division continued to show a progressive improvement in performance. Discussions in relation to these enquiries continue with a number of parties. These discussions will allow Mayne to determine how to maximize shareholder value from the Hospitals, either through continuing to operate the improving business or from divestment. None of the discussions have reached a stage where further disclosure would be appropriate. For further information contact: Media enquiries: Investor enquiries: Rob Tassie Larry Hamson General Manager Public Affairs Investor Relations Manager Phone: 03 9868 0886 Phone: 03 9868 0380 Mobile: 0411 126 455 Mobile: 0407 335 907 MAYNE GROUP: Observers Expect Sale of Hospitals Division -------------------------------------------------------- Analysts believe Mayne Group will lean more towards divesting its loss-making hospitals division despite its pronouncements hinting at holding on to the operation due to recent substantial improvements in operating margins. In an interview with The Age, Citigroup Smith Barney Analyst Andrew Goodsall acknowledged that the general manager of the hospitals division, Robert Cooke, had made good headway in turning the operation around. However, the damage to the reputation of the hospitals after former CEO Peter Smedley adopted a more centralized approach was deep-seated, he said. He estimates that the division, which has 4800 beds at the 54 hospitals, will have revenue of $1.28 billion for the 2002-03 financial year, although its earnings before interest and tax are expected to be just AU$44 million. "In recent industry transactions the average price per bed has been approximately $100,000. That implies a value for the division of less than $500 million," he told The Age. "The process of considering a sale of those assets should bring about further write-downs of assets carried on the balance sheet at above $1 billion." To recall, in February the company wrote off AU$90 million on the division as it announced the sale of six of the loss-making hospitals to Healthscope. In recent days, talks that Mayne had set up a 'data room' for interested parties added fuel to the rumors that the group is selling the division. Mayne shares fell 7 cents to $2.92 Thursday last week. MAYNE GROUP: St. John Denies Interest in Loss-making Hospitals -------------------------------------------------------------- Not-for-profit St. John of God Health Care denied rumors it is talking to Mayne Group Ltd. over the possible acquisition of the latter's hospitals division, Reuters said Friday. Michael Stanford, national chief executive of the Catholic group, told Reuters St. John is not interested: "The simple answer is we're not looking at the Mayne hospitals." "We've got plenty of other things on our plate at the moment... We don't have a motivation to be going out there talking to Mayne about it," he added. Mayne, the country's largest hospital operator, announced Thursday that it had received inquiries to sell the hospitals unit. St. John was dragged to the rumor-mill after Australian Financial Review said Friday the not-for-profit group was in the running in partnership with Healthscope Ltd. Healthscope, which early this year bought six of Mayne's hospitals, also denied talking to Mayne about a further acquisition. MCCONNELL DOWELL: Shareholders Approve Schemes of Arrangement ------------------------------------------------------------- The Shareholders of McConnell Dowell Corporation Limited on Friday approved the Scheme of Arrangement under which Aveng will acquire all of the shares in McConnell Dowell for AU$1.54 casth per share. The Optionholders in McConnell Dowell also approved the Scheme of Arrangement for Aveng to purchase outstanding options at 20 cents cash per option. Both schemes remain subject to approval of the Federal Court at a hearing set for 1 August 2003. Particulars of the voting: (1) Resolution: To approve the Shareholders Scheme of Arrangement No. of % of No. of % of Votes Votes Voters Voters Votes cast 'FOR' 11,083,266 87.44% 492 83.25% the motion Votes cast 'AGAINST' 1,591,805 12.56% 99 16.74% the motion Total Votes Cast 12,675,071 100.00% 591 100.00% (2) Resolution: To approve the Optionholders Scheme of Arrangement No. of % of No. of % of Votes Votes Voters Voters Votes cast 'FOR' 1,129,000 100.00% 80 100.00% the motion Votes cast 'AGAINST' 0 0 0 0 the motion Total Votes Cast 1,129,000 100.00% 80 100.00% The resolutions were carried by the required majority. Shareholders are advised that in respect of the proposed dividend of 10 cents per share, the Dividend payment date shall be the same as the payment date for the schemes if they are approved. If the schemes are approved by the Court on August 1, 2003, the Record Date for determining dividend entitlements will be August 8, 2003, with payment expected shortly after that date. McConnell Dowell Corporation Ltd is an Australian based engineering and construction company offering specialized heavy and marine civil, pipeline construction and mechanical and electrical services to a geographically diverse selection of quality clients. For and behalf of McConnell Dowell Corporation Limited D.G. Robinson Chief Executive Officer July 25, 2003 For inquiries: D.G. Robinson McConnell Dowell Corporation Limited Phone: (03) 8805 5200 Fax: (03) 8805 5375 POWERTEL LIMITED: Takeovers Panel Junks Roslyndale Petition ----------------------------------------------------------- The Takeovers Panel advises that it handed on Friday the decision on the application made on July 10 by the Roslyndale Syndicate (Roslyndale), seeking a declaration of unacceptable circumstances and certain orders in relation to the takeover bid by TVG Consolidation Holdings SPRL (TVG) for all of the shares of PowerTel Limited (PowerTel). The application was dealt with as follows. Roslyndale submitted that TVG's takeover bid should be subject to approval by a resolution of non-associated shareholders (or subject to a non-waivable 50.1% minimum acceptance condition) because, in Roslyndale's view, the bid price is so low that the bid will be attractive only to WilTel Communications Group (WilTel), PowerTel's largest shareholder. The sitting Panel declined to conduct proceedings on this limb of the application, which it regarded as unfounded. Shareholder approval is not required for an acquisition of shares under a takeover bid, particularly where no contravention of the takeovers code and no manipulation of the market or comparable unusual circumstances was alleged or established. Roslyndale requested an order that TVG should disclose in a supplementary bidder's statement certain forecast information concerning PowerTel, which it believed had been provided to TVG, and was material information which should be disclosed to shareholders, but which had not been included in TVG's bidder's statement. The Panel found that spreadsheets containing revenue budgets prepared by PowerTel management had been made available to TVG, Roslyndale, the major shareholders and the independent expert who provided reports in relation to the TVG bid and the Roslyndale proposal recently voted on at a general meeting of PowerTel. It decided that the contents of the spreadsheets are not in a form suitable for publication, but that the prospective financial information in them is material to a decision whether to accept the TVG bid or continue as a shareholder in PowerTel and that shareholders have not been provided with comparable information. The Panel invited PowerTel to provide its shareholders with information comparable with the spreadsheets but better suited to publication, in the form of a reasoned discussion of the company's prospects, based on the latest information available to the Board. The information would not necessarily include quantitative forecasts, but should be presented in the context of an updated discussion of the choice now facing PowerTel shareholders, whether to accept the TVG bid or retain their shares. PowerTel undertook to issue a supplementary target's statement updating the Board's recommendation concerning the TVG bid and containing a suitable discussion of the company's financial and other prospects. TVG has agreed to extend its bid so that it closes two weeks after the issue of PowerTel's supplementary target's performance, although that time period may need to be adjusted. The Panel has accepted those undertakings. Roslyndale also noted that TVG proposed to cause PowerTel to conduct a rights issue and to underwrite the rights issue, should its bid be successful. Under the Listing Rules, the rights issue will need the approval of shareholders not associated with TVG. Roslyndale submitted that the statements in TVG's bidder's statement concerning the inter-relation of the bid and the rights issue was sure to proceed, if the offerees might be misled into thinking that the rights issue was sure to proceed, if the bid succeeded. It submitted that the bid should be conditional on approval being obtained for the rights issue, that the bidder's statement should be clarified, or both. The Panel rejected this submission. It has reviewed the references to the rights issue in the bidder's statement and does not regard them as misleading or confusing in the context of the bidder's statement. The proposal to make the bid conditional on approval of the rights issue has no basis in policy and appears to be unworkable. On the basis of the undertakings mentioned above, the Panel dismissed Roslyndale's application. The sitting Panel comprised Alison Lansley, Carol Buys and Chris Photakis. George Durbridge Director, Takeovers Panel Level 47 Nauru House, 80 Collins Street, Melbourne VIC 3000 Phone: +61 3 9655 3553 E-mail: george.durbridge@takeovers.gov.au WATER WHEEL: ASIC to Enforce Compensation Orders vs. Ex-Director ---------------------------------------------------------------- ASIC Chairman David Knott on Friday responded to the decision handed that day by the Victorian Court of Appeal on the application by former Water Wheel director John Elliott, for a stay of the orders made against him by the Supreme Court of Victoria on 30 June 2003. "The Court of Appeal's decision to refuse a stay of the compensation order of $1.428 million is an important outcome for the administrator and creditors of Water Wheel," Mr. Knott said. "To give effect to that order and protect the interests of creditors, ASIC will forthwith initiate the processes required to recover the $1.428 million ordered against Mr. Elliott. We will also seek immediate compliance with the pecuniary penalty order made against him." The Court of Appeal's decision to stay the banning order against Mr. Elliott until the hearing of his appeal was granted subject to two important undertakings, namely: (1) That Mr. Elliott pursue his appeal with due expedition. The Court has granted expedition and the appeal is expected to be heard in early October 2003; (2) That Mr. Elliott not accept any new Board appointments pending the outcome of his appeal. ASIC will make no further comment on this matter. Background Following successful proceedings by ASIC against Mr. Elliott, Bernard Plymin and William Harrison, the Supreme Court ordered on 30 June 2003 that Mr. Elliott: (1) Be banned for four years, commencing on 28 July 2003, from managing a corporation; (2) Pay compensation of $1.428 million to the companies (jointly with Bernard Plymin); (3) Pay pecuniary penalties of $15,000; and (4) Pay ASIC's taxed costs (jointly with Mr. Plymin, but neither is obliged to pay more than 80 percent of the total). WATTLE GROUP: Anscor Manager Sentenced for Role in Failed Scheme ---------------------------------------------------------------- Kenneth Edwin Parker, the General Manager of Anscor Pty Ltd (Anscor), was sentenced Friday in the Brisbane District Court to a $1000, three-year good behavior bond, following his conviction on charges relating to his role in promoting the failed Wattle Group. Mr. Parker pleaded guilty to 14 charges of being knowingly concerned in the promotion of prescribed interests by Anscor, a Brisbane-based investment management and financial consultancy company, in contravention of the Corporations Act. Mr. Parker was charged following an investigation by the Australian Securities and Investments Commission (ASIC) into the Wattle scheme. ASIC alleged that Mr. Parker's role in promoting the scheme resulted in six investors losing approximately $345,000. Anscor was responsible for administering the investments, and received commissions on the funds that it sourced from the Wattle Group, of 40 percent per annum. In March 1997, Mr. Parker was granted a Limited Power of Attorney by Geoffrey Robert Dexter, operator of The Wattle Group, which allowed Mr. Parker to execute Wattle agreements on behalf of Mr. Dexter. Mr. Parker has also been automatically disqualified from managing a corporation for five years as a result of Friday's conviction. The matter was prosecuted by the Commonwealth Director of Public Prosecutions. Background The Wattle Group was an unlicensed investment scheme operated by Mr. Dexter, which raised more than $160 million from over 2700 Australian investors. The scheme involved Mr. Dexter obtaining unsecured loan funds from investors on the promise of high rates of return, generally 50 percent per annum. ASIC commenced action to close down the scheme in March 1998. In May 2001, Mr. Dexter was convicted of multiple fraud charges and jailed for 10 years. Three other promoters of the scheme, Marshall John Cobb of Tax Invest Australia Pty Ltd, Howard Jeffrey Owen of Fin Invest Pty Ltd and Bruce Raymond Walden of Australian Secured Mortgages Pty Ltd were charged with similar offences. In April 2002, Mr. Cobb was sentenced in the Canberra Magistrates Court to a two-year, $2,000 good behavior bond and ordered to pay a penalty to the Commonwealth of $10,000 within a two-year period. ASIC also banned Mr. Cobb from being a representative of either a dealer in securities or an investment adviser for one year in November 1999. In July 2002, Mr. Owen was sentenced in the Sydney Downing Centre District Court to 300 hours community service and a 12- month $1,000 good behavior bond. In July 2003 Mr. Walden was sentenced in the Brisbane District Court to a $2,000, three-year good behavior bond. ================================ C H I N A & H O N G K O N G ================================ ASIA GROUP: Court to Hear Winding up Petition August 20 ------------------------------------------------------- The High Court of Hong Kong will hear on August 20, 2003 at 10:00 a.m. the petition seeking the winding up Asia Group Limited. Fukkoh Byora Company Limited of Unit 2301-2302, Prosperity Centre, 25 Chong Yip Street, Kwun Tung, Kowloon, Hong Kong filed the petition on July 9, 2003. Ng & Lam represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Ng & Lam, which holds office at Unit 17, 31st Floor China Merchants Tower, 168 Connaught Road Central Hong Kong. CITIDEVELOPMENT HONG: Hearing of Winding Up Petition Set -------------------------------------------------------- The High Court of Hong Kong will hear on August 27, 2003 at 9:30 a.m. the petition seeking the winding up of Citidevelopment Hong Kong Limited. Bank of China (Hong Kong) Limited (the successor corporation to The Kwangtung Provincial Bank Limited pursuant to Bank of China (Hong Kong) Limited (Merger) Ordinance (Cap. 1167) of 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong filed the petition on July 10, 2003. Tsang, Chan & Wong represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tsang, Chan & Wong, which holds office on the 16th Floor, Wing On House, 71 Des Voeux Road Central Hong Kong. REALINK INTERNATIONAL: Winding Up Hearing Set August 27 ------------------------------------------------------- The High Court of Hong Kong will hear on August 27, 2003 at 9:30 a.m. the petition seeking the winding up of Realink International Limited. Bank of China (Hong Kong) Limited (the successor corporation to The Kwangtung Provincial Bank Limited pursuant to Bank of China (Hong Kong) Limited (Merger) Ordinance (Cap. 1167) of 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong filed the petition on July 10, 2003. Tsang, Chan & Wong represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tsang, Chan & Wong, which holds office on the 16th Floor, Wing On House, 71 Des Voeux Road, Central, Hong Kong. RICHMOND GARMENT: Faces Winding Up Petition in High Court --------------------------------------------------------- The High Court of Hong Kong will hear on August 20, 2003 at 10:00 a.m. the petition seeking the winding up of Richmond Garment Company Limited. Chan Mei Ling of Room 1004, Block 10, Upper Pak Tin Estate, Sham Shui Po, Kowloon, Hong Kong filed the petition on July 4, 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 34th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai Hong Kong. SHANGHAI LAND: Chairman, Wife Face HK$651M Embezzlement Suit ------------------------------------------------------------ Receivers of Shanghai Land Holdings Ltd. filed last week a writ before the High Court, seeking the recovery of some HK$651.7 million in allegedly misappropriated funds, Dow Jones said. The writ named as defendants group chairman, Chau Ching-ngai and his wife Mo Yuk-ping, accusing the couple of illegally transferring the money to third parties without authorization. Mr. Chau is currently detained by Chinese authorities for alleged loan fraud, while wife, Mo Yuk-ping, who was arrested in early June by the Independent Commission Against Corruption, is out on bail. Meanwhile, the company will be delisted from the Hang Seng Composite Index Series beginning August 4, HSI Services Ltd. told Dow Jones. The developer has not been trading since falling into receivership early June. SINORICH KITCHENWARE: Bank of China Files Winding Up Petition ------------------------------------------------------------- The High Court of Hong Kong will hear on August 27, 2003 at 9:30 a.m. the petition seeking the winding up Sinorich Kitchenware (HK) Limited. Bank of China (Hong Kong) Limited (the successor corporation to The Kwangtung Provincial Bank Limited pursuant to Bank of China (Hong Kong) Limited (Merger) Ordinance (Cap. 1167) of 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong filed the petition on July 2, 2003. Tsang, Chan & Wong represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tsang, Chan & Wong, which holds office on the 16th Floor, Wing On House, 71 Des Voeux Road Central Hong Kong. ================= I N D O N E S I A ================= BAHANA PEMBINAAN: Repays US$17M Debt with Land in West Java ----------------------------------------------------------- Troubled state-owned investment company, PT Bahana Pembinaan Usaha Indonesia (BPUI) agreed last week to give up its 1.76 million square-meter land holding in Bantar Gebang, Bekasi, West Java as payment for debts owed to mining company, PT Timah. In a disclosure to the Jakarta Stock Exchange, Timah, the world's largest integrated tin producer, said the debt-to-asset swap arrangement will answer for BPUI's US$17 million and Rp61 billion- (about $7 million) outstanding debt to the company. Timah public relations official, Pudji Samekto, told The Jakarta Post a debt-to-asset swap settlement was the only way the company was able to recoup its investment from the cash-strapped BPUI. "Well, there was no other option. We are lucky just to get the principal back because we almost got nothing, as BPUI is also obliged to repay huge debts to other creditors," said Mr. Pudji. Timah said it had not decided what to do with the land as the company was currently in need of cash to finance its $20 million exploration plans. The swap settles a five-year legal dispute that started in 1998 when Timah made a short-term investment of $22 million and Rp61 billion through the purchase of BPUI promissory notes. After three months, BPUI was only able to pay back $5 million, defaulting on the remainder. According to the report, Timah attempted to recoup its money several times, filing a number of bankruptcy suits against BPUI between 1998 and 2001. The Jakarta Post said the company suffered serious money woes during the tenure of Sudjiono Timan, BPUI's president between 1994 and 2001. According to state prosecutors, BPUI suffered losses of at least $240 million during these years. Mr. Sudjiono was tried in September last year for corruption and channeling company money to a number of influential businessmen, but got subsequently acquitted. ========= J A P A N ========= MATSUI SECURITIES: Online Brokerage Returns to Profit ----------------------------------------------------- Online brokerage Matsui Securities Co. posted a profit of 757 million yen for the April-June quarter, against a net loss of 18 million yen a year earlier, Kyodo News reported Friday. The turnaround is attributed to the recovery in the stock market, which helped push up its brokerage commission revenues by 10.8 percent from a year earlier to 2,899 million yen. MITSUBISHI MOTORS: JCR Places Rating Under Credit Monitor --------------------------------------------------------- Japan Credit Rating Agency (JCR) has placed the preliminary BBB- and J-2 ratings on the shelf registration, senior debts, Euro Medium Term Note Programme and CP program of Mitsubishi Motors Credit of America, Inc. and MMC International Finance (Netherlands) B.V. Shelf Registration: Maximum: Y250 billion Valid: two years from May 22, 2002 Senior debts CP: Maximum: Y250 billion Backup Line: 0 percent Euro Medium Term Note Program: Issuers: Mitsubishi Motors Corporation, Mitsubishi Motors Credit of America, Inc. and MMC International Finance (Netherlands) B.V. Maximum: Equivalent of US$4 billion Maturities: 1 month - 30 years RATIONALE: Mitsubishi Motors Corporation (MMC) announced the downward revision of forecasts of performance for fiscal 2003 due to drop in the number of automobile sales arising from intensification of competition and the narrowing down of the auto financing business and deterioration in the finance business in the U.S. Its Turnaround restructuring plan aims to turn the domestic passenger car business into the black while sustaining high level of earnings from business in North America. JCR has pointed out that MMC's earnings base remained weak with the heavy burden of loss incurred by domestic business and that MMC would have to tackle difficult job of trade-off between the cutback on auto financing business and the sustaining of sales volume in quantity in North America, although MMC implemented cost reductions in the Turnaround plan in advance. JCR's concerns came to the surface. And the degree of the downward revision exceeded its assumptions. MMC plans to restore the earnings rapidly in the 2nd half of the fiscal year. Given the uncertainty over how it would rebuild both the domestic and North America's businesses, JCR placed the ratings for MMC under Credit Monitor. MITSUBISHI MOTORS: Issues Revised Business Outlook For 2003 ----------------------------------------------------------- Mitsubishi Motors Corporation (MMC) on Thursday filed its net sales result on a quarterly basis (April to June 2003: Q1 fiscal year 2003), as well as a revised profit forecast for the first half and the full year of 2003, to the Tokyo Stock Exchange. Full disclosure on a quarterly basis will start in fiscal year 2004. First quarter results In the months of April through June, MMC's consolidated net sales reached 607.0 billion yen (US$5.06 billion, euro 4.86 billion)*, an increase of 20.7 billion yen or 4 percent compared with the same period of the previous year. Net sales declined by 35 percent to 139.6 billion yen in North America but increased in all other regions: Japan (152.0 billion yen, +31 percent), Europe (159.4 billion yen, +34 percent), Asia and rest of the world (156.0 billion yen, +16 percent). In total, MMC sold 375,200 vehicles globally on a retail basis over the last three months, a slight increase from the same period in 2002 (373,600 units). Unit sales in Japan increased by 7 percent to 78,600 units, backed by strong sales of its new Grandis minivan, which was launched in Japan on May 17. Sales in North America declined by 12 percent to 76,400 units as a result of tough competition in the increasingly incentive-driven U.S. market and a tightened credit offering. Sales in Europe slightly decreased by 3 percent to 52,700 units in line with the overall development of the European market. Sales in Asia and the rest of the world improved by 5 percent to 167,500 units, further solidifying MMC's already strong position in these growth markets. FY2003 Revised Outlook Difficult global economic conditions and challenges in the North American market have impacted MMC growth and profitability in Q1 FY2003. MMC anticipates a continuation of the difficult world economic climate for the foreseeable future. In North America, MMC forecasts a delay in the full-scale recovery of the U.S. economy, which places additional competitive pressure on all manufacturers in the incentive-driven market. Against this background, MMC has revised its retail sales forecast for North America for fiscal year 2003 to 340,000 units, down from the 370,000 unit sales originally planned. MMC is addressing these market challenges through new product offerings, including the launch of four new models in 2003; competitive incentive spending that exceeds the original plan as well as other marketing adjustments. "North America remains an integral market for Mitsubishi Motors and we are well on our way to overcoming challenges that in varying degrees have impacted all manufacturers," said MMC President and CEO Rolf Eckrodt. While improvement efforts are underway to restore stability to MMC's U.S. financing business unit Mitsubishi Motors Credit of America (MMCA), losses resulting from poorly performing loans caused MMC to adopt a new and more conservative approach to reassess the outstanding credit portfolio of MMCA. Upon completion of this re-assessment MMC is expecting an extraordinary provision in the range of 50 billion yen (US$420 million, euro 400 million). To avoid similar losses in the future, MMCA has already improved the quality of its portfolio by radically reducing the use of "balloon" and "deferred" loans to a minimal level (from 55 percent to below 5 percent over the last 12 months) for newly originated business. Mainly due to this expected extraordinary provision, MMC revised its forecasted consolidated net income in fiscal year 2003 to 10 billion yen (US$83 million, euro 80 million) (original forecast: 40 billion yen). Additionally, MMC revised its full-year operating profit forecast on a consolidated basis to 60 billion yen (US$500 million, euro 480 million), down from 90 billion yen. Ordinary income in FY2003 is now expected to come in at 30 billion yen (US$250 million, euro 240 million), down from 65 billion. Global consolidated net sales in fiscal year 2003 are forecasted at 2,720 billion yen (US$22.7 billion, euro 21.8 billion) against an original forecast of 2,900 billion yen. In addition to various profitability improvement measures, such as further cost reduction and asset divestment; MMC is temporarily adjusting its production plans for North America. As has previously been announced in the U.S., MMC has pushed back by six months the completion date for a $200 million expansion project at its Illinois manufacturing facility. The delay will give Mitsubishi Motors additional time to evaluate the most appropriate products and production mix. While MMC has no immediate plans for additional production expansion in North America, it remains fully committed to the market and will continue to evaluate expansion opportunities based on a close monitoring of overall market development. MITSUBISHI MOTORS: Launches New R&D Facility in Australia --------------------------------------------------------- Mitsubishi Motors Corporation (MMC) and its Australian subsidiary Mitsubishi Motors Australia Limited (MMAL) announced an expenditure package of A$230 million for a new automotive R&D center in Australia. The center will be referred to as Mitsubishi Motors R&D Australia (MRDAus) and will enable MMAL to take an increased role in the development of Mitsubishi vehicles worldwide, including the development of two new models in Australia due for release post-2005. "With the addition of an R&D center in Australia, our operations there will now become an integral part of our global design and engineering network," said MMC President and CEO Rolf Eckrodt. The move also confirms MMC's ongoing commitment to the Asia- Pacific region, an area where MMC has been traditionally strong and which forms a key part of its future overseas strategy. Other R&D centers are located in Japan, the United States, and Germany. MRDAus will invest a total of A$12 million in upgrading and expanding the Mitsubishi test track facilities near Adelaide. It will include a new $10 million high-speed test track, making it one of the largest facilities of its kind in the Southern Hemisphere, allowing testing of cars beyond 200 km/h. The creation of the R&D center with an expanded work force is resulting in expanded facilities for MMAL engineers, technicians and administrative staff. This includes an A$5 million information technology upgrade to improve the ability of its designers and engineers to work on-line with their counterparts in Japan, the US, and Europe. NISSHO IWAI: Integrating Logistics Subsidiaries ----------------------------------------------- As part of the Nissho Iwai-Nichimen Group's organizational restructuring and rationalization drive, the Logistics subsidiaries of Nissho Iwai Corporation and Nichimen Corporation respectively will be merged into a single corporate entity `Nissho Iwai-Nichimen Logistics Corporation', with business operations scheduled to commence from 1st August 2003. The two companies to be merged are Nissho Iwai Logistics Corporation (Daiba, Minato-ku, Tokyo) and Nichimen Logistics Co., Ltd. (Shiba, Minato-ku, Tokyo). The merger is expected to result in improved administrative efficiency as well as a leaner organization due to the streamlining of duplicate functions and reduction of redundant personnel. The combined business volume will also lead to augmented `bargaining power', an overwhelmingly important advantage in the Logistics industry, which in turn will contribute to increased customer satisfaction. Through the introduction of advanced Logistics functions, Nissho Iwai-Nichimen Logistics Corporation will not only be able to continue offering existing services, but also improve profitability by offering Contract Logistics services (3PL services based on extensive use of Information Technology). In addition, the new entity will operate in various industries, including Machinery, Automobiles, Steel, Non-ferrous Metals, Coal, Chemicals, Plastics, Textiles, Foods and Consumer Products, etc., serving both domestic markets as well as overseas markets centering on the Asian region (such as China, Vietnam, Thailand, Indonesia, etc.). This will enable it to capitalize on the strengths of a General Trading Company's comprehensive Logistics functions as well as merger synergies and thus differentiate itself from specialized Logistics firms. It is estimated that the total sales will be around JY 7.6 billion in FY 2004 and JY 8.6 billion in FY 2005. Company: Nissho Iwai-Nichimen Logistics Corporation Directors & Auditors President: Sekio Hara Vice-President: Masanori Daikuhara Senior Managing Director: Shojiro Ogino Managing Director: Tsuneo Senzoku Auditor: Masanori Mizobuchi Auditor: Kentaro Watanabe Headquarters: 2-3-1 Daiba, Minato-ku, Tokyo Business Network: Branch Office: Osaka Field offices: Tachiaigawa (Shinagawa-ku, Tokyo) Mita Overseas liaison offices: Beijing, Shanghai, Hong Kong, Ho Chi Minh Capital: JY 143.9 million Accounting Period: April to March Major Shareholders: Nissho Iwai Corporation (58 percent) Nichimen Corporation (42 percent) Number of Employees: 127 On April 1, Nissho Iwai and trading house Nichimen Corp. integrated their management under a holding Company Nissho Iwai- Nichimen Holdings Corporation in a bid to rebuild the struggling businesses, TCR-AP reported recently. Nissho Iwai has begun restructuring efforts and has decided to cut the salaries of its management staff by about 20 percent. For a copy of the press release, go to http://www.nn-holdings.com/eng/pdf/2003/e_09.pdf RESONA HOLDINGS: Liquidates Two Non-bank Affiliates --------------------------------------------------- Ailing Resona Holdings Inc., recently rescued by public funds, plans to liquidate two non-bank affiliates as part of a drive to overhaul its group operations, according to Reuters. The bank is reviewing ways to streamline relations with some 50 affiliates and 60 firms with which it has close ties. The names of the affiliates were not mentioned in the report. Resona had 2.9 trillion yen in bad loans at the end of March, but that total may rise following the reassessment. RESONA HOLDINGS: Needs to Sell All Stockholdings, Says Yanai ------------------------------------------------------------ Noboru Yanai, Chairman of Resona Holding Inc.'s auditing committee, said that the financial group should sell all its stockholdings to improve its financial health, Kyodo News reported Tuesday. Mr Yanai recently became one of Resona's outside directors. Resona plans to halve its shareholdings, worth Y1.17 trillion as of March 31, over a period of two years under a business improvement plan it submitted to the government. Mr Yanai hopes to finish auditing the group's assets by the end of September. He also said the group should actively utilize Industrial Revitalization Corp. of Japan, in disposing of its bad loans. On June 30, the Japanese government injected Y1.96 trillion in public money into Resona Bank, the core bank of the group, to replenish its depleted capital base. ========= K O R E A ========= HANARO TELECOM: Posts W67.4B Net Loss in First Half --------------------------------------------------- Hanaro Telecom Inc. posted a net loss to 67.4 billion won (US$57.1 million) in the first half of this year, reports the Korea Herald. The Company posted an operating loss in the first quarter this year due to abrasive competition in the saturated broadband market, but it swung back to operating profits in the second quarter, Hanaro said in a statement. According to Cho Young-wan, Director of the Hanaro's financial strategy department, the Company will continue to restructure businesses to cut costs in the second half to achieve the 2003 earnings target. South Korea's Information and Communication Minister Chin Dae-je is asking LG Group to help Hanaro to issue new shares if the takeover bid by LG is approved in the general shareholder's meeting, the Troubled Company Reporter-Asia Pacific reported recently. Minister Chin also said that even if the proposal in favor of LG gets rejected at the shareholder's meeting, LG should take all possible measures to normalize Hanaro's operation. HYNIX SEMICONDUCTOR: Needs to Pay 45% Import Tariff --------------------------------------------------- Hynix Semiconductor might need to pay 45 percent tariffs on its products to the U.S. as the International Trade Commission (ITC) in Washington determined that the Korean government has provided aids of more than US$5 billion to the chipmaker through various domestic banks, DebtTraders reports. The Korean government has complained the situation to the World Trade Organization. The U.S. Commerce Department would make the tariff ruling in early August after receiving detailed information. The chipmaker is also facing tariffs by the European Union. The ruling might force Hynix to shift its production to its factory in Oregon, which the chipmaker has invested US$1 billion in the Oregon facility. DebtTraders reports that Hyundai Semiconductor's 8.250% bond due in 2004 (HYUS04KRS1) trades between 87 and 91. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=HYUS04KRS1 HYUNDAI MOTOR: Incurs US$1B Loss Due to Strike ----------------------------------------------- About 15,000 unionized employees at Hyundai Motor Co. staged a rally at the Company's main plant Thursday to demand higher wage hikes than management offered a day earlier, the Associated Press reports. On Wednesday, Hyundai Motor suggested raising wages by 8.4 percent, up from its earlier offer of a 4 percent increase. It also offered bonuses. The union, made up of 39,000 of the company's 50,000 employees, is demanding that the Company raise basic wages by 11 percent, as well as give bonuses. The Company has incurred about 1.1 trillion won ($1 billion) in production losses since a partial strike began on June 25, shutting the Company's factories for six to eight hours a day. HYUNDAI MOTOR: Local Sales, Exports Hurt by Strike ------------------------------------------------- Hyundai Motor Co. is losing sales and may be forced to halt production in China because of a month-long labor dispute that's caused the loss of vehicle production worth 1.2 trillion won (US$1.04 billion), according to Bloomberg on Friday. It's also facing problems overseas because its assembly plants in China and other countries are running out of parts. Union workers have been refusing to work overtime since June 20 and have been holding sporadic walkouts since June 25, demanding an 11 percent wage increase, a five-day work week, better treatment for contract workers, participation in the company's overseas investment plans and the like. As of July 24, Hyundai Motor had lost production of 90,501 units of its Grandeur XG sedans, Santa Fe sport-utilities and other vehicles) during the strike. SK GLOBAL: Receivership Expected in Two Weeks --------------------------------------------- Domestic creditors of SK Global voted on Wednesday to place the Company under court receivership after foreign creditors turned down a debt buyout proposal, reports the Korea Times. Local creditors will finalize a receivership plan and file an application with the court in two weeks. Creditors said SK Global will undergo restructuring, not liquidation, under the guidance of the court. SK Global has been teetering on the brink of liquidation since early March, when prosecutors uncovered a massive accounting fraud at the firm. SK Global's foreign debt, including obligations owed by the Company's foreign subsidiaries to domestic creditors, amounts to some 2 trillion won, while its liabilities exceed its assets by around 4.4 trillion won. =============== M A L A Y S I A =============== BERJAYA SPORTS: Purchases 8% Unsecured Loan Stocks -------------------------------------------------- The Board of Directors of Berjaya Sports Toto Berhad (or BToto) announced that its wholly owned subsidiary, FEAB Properties Sdn Bhd has purchased ICULS in BToto as follows: 1. Date of Purchase: 23 July 2003 2. Number of ICULS Purchased: 200,000 3. Minimum price paid for each ICULS: RM3.48 4. Maximum price paid for each ICULS: RM3.54 5. Total consideration paid: RM707,660.03 6. Total number of ICULS held to-date: 23,600,000 7. Cumulative consideration: RM73,267,326.61 paid to-date The Company has obtained the necessary approvals for the above purchase of ICULS up to an amount not exceeding RM1.2 billion. Details on the ICULS purchase were disclosed in the Company's Circular to Shareholders dated 5th April 2002 and the Abridged Prospectus relating to the Rights Issue of ICULS dated 20th June 2002. CHASE PERDANA: Issues Debt Restructuring Scheme Proposal -------------------------------------------------------- Chase Perdana Berhad refers to the announcement made on 9 September 2002 relating to the approval from the Securities Commission (SC) on the Proposals. As stated in paragraph 6 (iv) of the SC's approval letter dated 6 September 2002, CPB is required to submit the valuation reports of CPB Group's properties, which are subjected to the proposed mandatory asset disposal program pursuant to the Proposed Debt Restructuring Scheme for the SC's review and approval prior to the disposal of the said properties. On behalf of the Company, Southern Investment Bank Berhad wishes to announce that the SC has via its letter dated 21 July 2003, which was received on 22 July 2003, approved the valuation of the said properties. EMICO HOLDINGS: Posts Restructuring Scheme Update ------------------------------------------------- Further to the announcement dated 4 June 2003, Affin Merchant Bank Berhad (Affin Merchant), on behalf of Board of Emico Holdings Berhad, announced that the Securities Commission (SC) had, via their letter dated 21 July 2003, approved the Company's application for an extension of time to implement the Proposals from 25 June 2003 to 24 December 2003. The said approval is subject to the condition that Affin Merchant/Emico providing the SC with monthly reports of the status of implementation of the above Proposals. FW INDUSTRIES: Winding Up Hearing Set For January 24 ---------------------------------------------------- The Directors of FW Industries announced the recent development of the above legal suit as follows: The Company's lawyers informed that after the hearing on 10 July 2003, the Honorable Judge had made inter alia the following orders: (i) That the Ex-Parte Order of High Court of Malaya at Shah Alam dated 28 October 2002 for the appointment of Provisional Liquidator be set aside; (ii) That an interim stay be in force pending the final disposal of our Application for the striking out of the said petition; (7iii) That said application be fixed for continued hearing on 29 January 2004. GEAHIN ENGINEERING: Extends Negotiation Period With MGSB, MKK ------------------------------------------------------------- Reference is made to the announcements dated 23 January 2002, 23 April 2002, 23 July 2002, 22 October 2002 and 21 January 2003. Geahin Engineering Berhad announced that the Company, Mayford Garments Sdn. Bhd. (MGSB) and M.K.K. Industries Sdn. Bhd. (MKK) had on 22 January 2003 mutually agreed to extend the negotiation period between Geahin and/or its agents and the creditors in relation to the settlement and restructuring of debts owed to the creditors, as set out in the Restructuring Agreement, for a further three (3) months, expiring on 22 October 2003. HARRISONS TRADING: Appoints Provisional Liquidator -------------------------------------------------- Harrisons Trading (Peninsular) Sdn Bhd (HTP) served the winding- up petition on Kumpulan Jaya Pemasaran Sdn Bhd (KJP) as follows: 1) Date of Appointment of Provisional Liquidator That upon the application of HTP to the High Court of Malaya at Kuala Lumpur, Ms Kuan Mei Ling, has been appointed by the High Court on 22 July 2003 to be the Provisional Liquidator of KJP. The High Court further ordered that the Provisional Liquidator be authorized to inter-alia carry on the business of KJP so far as is necessary for the beneficial winding-up thereof. 2) Details of the Subsidiary Under Provisional Liquidation KJP is a wholly owned subsidiary of HTP, which is also a wholly owned subsidiary of the Company. KJP is a private limited Company incorporated in Malaysia on 16 June 1997. The current paid-up capital is RM1,000,000.00 divided into 1,000,000 ordinary shares of RM1.00 each. KJP's principal activities are warehousing and distribution of consumer products. 3) Net Book Value of the Affected Assets The unaudited net book value of the affected assets as at 30 June 2003 is RM878,143.40. 4) Events Leading to the Appointment of Provisional Liquidator Arising from a Judgement entered against KJP on 12 June 2003, Zaitun Marketing Sdn Bhd had inter-alia garnished KJP's bank account as well as effected a Writ of Seizure and Sale on KJP's goods. With a view to ensure a fair and equitable payment to all the unsecured creditors of KJP and to avoid preferring one creditor over another, HTP proceeded to present the winding-up petition against KJP. 5) Financial and Operational Impact The appointment of the Provisional Liquidator is not expected to have a material impact on the financial and operations of the Group. 6) Expected Losses Arising from Appointment of Provisional Liquidator The Company does not expect a material loss arising from the appointment of the Provisional Liquidator. 7) Steps Taken in respect of the Appointment of Provisional Liquidator KJP has engaged solicitors to represent KJP in the winding-up proceedings. KJP does not intend to oppose the appointment of the Provisional Liquidator given its insolvency. KSU HOLDINGS: Unit Files Winding-up Petition -------------------------------------------- KSU Holdings Berhad refers to its announcements dated 2 April 2003, 10 April 2003 and 23 April 2003 in relation to the winding-up petition filed by the Petitioner against Kumpulan Sepang Utama Sdn Bhd (KSUSB) (Winding-Up Petition). Further to the hearing on 23 July 2003, the Company wishes to announce that the Court has ordered KSUSB to be wound-up. In the Company's group accounts as at 31 March 2003 and as announced on 27 May 2003, the Company's total cost of investment in KSUSB is RM27.2 million through its subsidiary, Earnest Equity Development Berhad (EEDB), which owns KSUSB. When the petition was first filed, it had triggered an event of default under KSUSB's loan agreements with Malaysia Building Society Berhad (MBSB) for a term loan and 2 bridging loans. The impact of the winding-up order will now depend on the action (if any) taken by MBSB as the land, upon which KSUSB's Taman Kenanga project is situated has been charged by Lengkap Lagenda Sdn Bhd (LLSB), to MBSB as security for the loans to KSUSB. LLSB is a subsidiary of Kembangan Alam Berhad (KAB), which in turn is a subsidiary of the Company. The Company's cost of investment in KAB is RM1.8 mil as at 31 March 2003. Taking into account the current adverse financial state of KSUSB, the projected loss to the Company will be its cost of investment in KSUSB and KAB. Additionally, EEDB has a corporate guarantee of RM26,000,000 extended to MBSB for the bridging loan given KSUSB. The Company will be seeking legal advice on its next course of action. PAN PACIFIC: BDO Binder Carries Out Investigative Audit ------------------------------------------------------- Further to the announcement dated 23 May 2003, Alliance Merchant Bank Berhad, on behalf of the Board of Directors of Pan Pacific Berhad (PPAB), wishes to inform that the Company had appointed Messrs. BDO Binder as the independent audit firm to carry out the investigative audit on the past business losses of PPAB. RNC CORPORATION: Extends Moratorium Period to Next Year ------------------------------------------------------- The Special Administrators of RNC Corporation Berhad, namely Robert Teo Keng Tuan and Vincent Chew Chong Eu announced that the moratorium period for the Special Administrators of the Company has been extended by Pengurusan Danaharta Nasional Berhad for a further period of twelve (12) months from 28 July 2003 to 27 July 2004 pursuant to section 41(3) of the Act. SITT TATT: Terminates Share Sale Agreement With MISL ---------------------------------------------------- Sitt Tatt Berhad announced that its inter parte application for interlocutory injunction against MISL & Associates Sdn Bhd (MISL) has been fixed for hearing on 23 September 2003. An interim injunction is granted against MISL restraining the disposal of the new 125,125,000 ordinary shares and 34,138,000 Irredeemable Convertible Preference shares (New Shares) and any exercise of the rights over the New Shares until the disposal of the aforesaid application. ===================== P H I L I P P I N E S ===================== BANK STO. TOMAS: PDIC Issues Liquidation Notice ----------------------------------------------- In compliance with the March 21, 2003 Order, take notice that the Philippine Deposit Insurance Corporation (PDIC) as Liquidator of the Rural Bank of Sto. Tomas (Pampanga), Inc., will submit the Motion for Approval of Project of Distribution of the Assets of the said bank for the approval of the Liquidation Court (Regional Trial Court of Branch 41-San Fernando, Pampanga, In Re: Petition for Assistance in the Liquidation of Rural Bank of Sto. Tomas (Pampanga), Inc., PDIC, petitioner, Sp. Proc. No. 2674 on June 05, 2003 at 8:30 A.M. MANILA ELECTRIC: Sees Profit in Second Quarter ---------------------------------------------- Manila Electric Co. (Meralco) is expected to swing back into profit in the second quarter as a rate hike gives the debt-laden utility a boost. Analysts surveyed by Reuters estimated its full-year net income at 1.3 billion to 1.8 billion pesos. Meralco posted heavy losses last year and in the first quarter of this year due to delays in getting the tariff increase, tepid sales and high losses of electricity from theft and leakage. It has also been struggling to reschedule loan payments and restructure its debts. The Company, which won its first rate rise since 1994 from the industry regulator in late May, is expected to report its second quarter results on Monday or Tuesday. Higher rates will also help offset the impact of a refund of 30 billion pesos ($556 million) ordered by the Supreme Court after Meralco was found to have over-billed customers since 1994. NATIONAL POWER: Transfers Pinamucan Power Barge to Leyte ------------------------------------------------------- The National Power Corp. (Napocor) plans to transfer the Pinamucan power barge in Batangas to Leyte to help avert the looming power crisis in the Visayas region, the Malaya Newspaper said on Friday. The National Transmission Co. (NTC) will ask for the affirmation of the Joint Congressional Power Commission (JCPC) to allow the transfer of the barge. Pinamucan power plant has eight units with a capacity to generate 110 megawatts of energy. The JCPC approval would be released within the next two weeks. The National Power Corporation (Napocor) expects a loss of as much as 113 billion pesos (US$2.1 billion) after it agrees to allow Manila Electric (Meralco) buy less power, DebtTraders reports. However, Manila Electric has to pay 20 billion pesos (US$528 million) to National Power Corporation over a longer term and cover the loss from its customers. NEGROS NAVIGATION: Needs P600M to Restructure --------------------------------------------- Negros Navigation Co. (NENACO) negotiating with two unnamed shipping operators for a strategic investment of at least 600 million pesos to bring it to the next phase of its business restructuring program, ABS-CBN News said on Thursday. The shipping firm emerged out of serious financial problems last year due to a successful cost-cutting and debt reduction program it undertook three years ago. For the first semester, the Company booked a profit of P62.7 million, a 19 percent improvement from P52.5 million last year, because of reduced overhead expenses, and financing and tax charges, as well as its business restructuring program. NENACO is seeking at least P600 million to purchase equipment, freighters, and invest in its passage business. The Company has P794 million worth of debt, which it plans to reduce partly by selling some real estate in Manila, Bacolod and Iloilo. RURAL BANK OF TUY: Posts Key Dates Related to Insurance Claims -------------------------------------------------------------- By virtue of Monetary Board Resolution No. 603 dated April 14, 2000 ordering the closure of the Rural Bank of Tuy (Batangas), Inc., the Philippine Deposit Insurance Corporation (PDIC) will start receiving and processing claims for payment of insured deposits in the closed Rural Bank of Tuy (Batangas), Inc. Depositors are requested to proceed to the Municipal Hall of Tuy, Batangas, where the duly authorized representatives of PDIC are stationed, to file claims for payment of insured deposits from July 24 to August 4, 2003. Depositors may also file their claims by mail addressed to- The Manager Claims Processing Department Philippine Deposit Insurance Corporation 2228 Chino Roces Avenue 1231 Makati City PDIC representatives shall service claims and entertain queries from 8:00 AM to 5:00 PM, Mondays thru Fridays. 2. Depositors are advised to present the following documents to the PDIC representatives when filing their claims for insured deposits: a. Original evidence of deposit (i.e. savings passbook and certificate of time deposits). b. Two (2) latest identification cards/documents (IDs) with depositor's specimen signature. Other documents maybe required by the PDIC representatives in the course of claims processing. 3. Depositors of the closed Rural Bank of Tuy (Batangas), Inc. have 18 months from RBTI's re takeover by PDIC or up to November 19, 2004 to file their claims for payment of insured deposits. After November 19, 2004, PDIC as insurer shall no longer accept any claim for payment of insured deposits maintained with the subject bank. TIBAYAN GROUP: SEC Prohibits PSE Members From Trading Stocks ------------------------------------------------------------ The Securities and Exchange Commission (SEC) has issued an order prohibiting member-brokers of the Philippine Stock Exchange (PSE) from executing trade orders of the Tibayan Group of Companies as part of efforts to protect the interest of the group's investors, the Philippines Star said on Friday. The directive was issued following reports that Tibayan Management Group and TMG International Holdings Co. Ltd., both owned by businessman Jesus Tibayan, are planning to divest their stock investments. Tibayan Management and TMG are currently under preliminary investigation by the Department of Justice for investment fraud. The investigation was spurred by the criminal complaint earlier filed by the SEC against management and salesmen of the Tibayan Group for unregistered sale of securities in violation of the Securities Regulation Code. UNITED COCONUT: New President Unveils New Vision ------------------------------------------------ United Coconut Planters Bank's new President and Chief Executive Officer Jose L. Querubin unveiled on July 18, 2003 his vision for the bank and outlined the strategies for achieving the vision and getting the bank back on the growth track in the next five years before a lively gathering of employees from the head office and Metro Manila branches who packed the DSD lobby and gave him a warm and stirring welcome. "We will be the best bank for our clients by providing them the best service in the most inexpensive way possible," Mr. Querubin said amid cheers from a highly animated audience. "Where I want to lead the bank in the next five years is to be the best service provider to our clients at the lowest cost. I am not saying that we will be number one in assets. I am not saying that we will be number one in profits. The important thing is for us to serve our clients to the best of our ability - that would be our ultimate goal," Mr. Querubin stressed. Mr. Querubin explained that excellent service would drive the bank's earning performance. He said that there is a direct correlation between the bank's ability to consistently deliver customer satisfaction and its ability to sustain profitability. "If clients are happy, they'll give us their business and that's how we will generate the profits," he stressed. According to Mr. Querubin, there are four strategies to achieve the new vision, and all must be implemented simultaneously. One of the strategies is to fix the remaining non-performing assets of the bank. Mr. Querubin disclosed that a master plan will be drawn up that will allow the bank to generate revenues from these idle assets. Another strategy is to improve margins and productivity. While saying that margins are mainly market-driven, Mr. Querubin stressed that there is a way for the bank to rationalize its pricing structure so that it can generate bigger margins for the kind of risk that it is taking. At the same time, he said the bank must sharpen its efficiencies to produce more revenues from existing resources. "We will not build up our asset base. On the contrary, we will be very prudent in lending money. To increase profitability, we will improve margins where we can and at the same time enhance productivity," Mr. Querubin said. The third strategy is broadening the use of technology to create customer value. Mr. Querubin said technology is a tool that will make the bank more competitive. It is a value that the bank will add to its service, he added. The fourth strategy is team execution. Saying that the best laid out plans will go to naught if they are not implemented properly, Mr. Querubin called on the employees to actively participate in executing the business strategies of the bank. "Execution belongs to all of us. It is not going to be easy. It will entail a lot of sacrifices and a lot of changes, but the reward will be great. This is where we can work together, and if we all work as a team, we can become the best bank to our clients," he said. Mr. Querubin lauded UCPB's strong service orientation saying that this will make it easier for the organization to achieve the bank's new vision. To loud cheers from the employees, he cited an instance when he was being interviewed over the phone by DZMM anchor Winnie Cordero, who, unknown to him, is a client of UCPB Ortigas branch. "It felt so good that as I was trying to explain the situation of the bank, the financial package, the Sandiganbayan resolution, she (Winnie Cordero) was telling her radio listeners that they should bank with UCPB. She said that whenever she goes to the bank, she's attended to immediately --- she doesn't even have to wait for 30 minutes like in other banks and the branch even serves her coffee. She was selling the bank for me," Mr. Querubin recounted. Mr. Querubin said that UCPB is stronger now with the signing of the P20-billion financial package with PDIC and the recent ruling of the Sandiganbayan on the ownership of the sequestered shares of stock of the bank. He thanked chairman Edward S. Go and executive vice president Andrew D. Alcid for their hard work in ensuring that the financial package was signed, sealed and delivered. For more information, go to http://www.ucpb.com/ ================= S I N G A P O R E ================= CK TANG: German Bank Sues Retailer For S$1.7M --------------------------------------------- Bayerische Hypo-und Vereinsbank (HVB), Germany's second-largest private Bank, is suing loss-making retailer CK Tang for alleged breach of contract, according to Channel News Asia on Thursday. HVB is claiming sums ranging from S$165,000 to about S$1.7 million from CK Tang for aborting a proposed securitization of the retailer's commercial rental receivables. This was to help re-finance CK Tang's S$110 million of debts. In June, the retailer repaid the debt amount, comprising a loan from United Overseas Bank and secured bonds, with a S$120 million new facility from OCBC Bank. With the much better deal from OCBC, CK Tang decided to drop HVB's. CK Tang will pay HVB a break-up fee of S$165,000, but the German bank wants in addition to claim for fees and commission. FLEXTRONICS INTERNATIONAL: Widens 1Q03 Net Loss to S$289.7M ----------------------------------------------------------- Top-tier manufacturer Flextronics International Ltd. posted a first-quarter net loss of S$289.7 million compared with a net loss of S$131.2 million a year earlier, Reuters said on Friday. Charges in the quarter ended June 30 included an after-tax restructuring charge of S$293.5 million, which included S$230 million for closing two facilities and an asset impairment charge related to Flextronics' Multek PCB business. Analyst Todd Coupland of CIBC World Markets, who owns Flextronics shares, said the Company's first-quarter results were a "little light," and that the contract manufacturer's September quarter outlook was "modestly disappointing because you would have expected a bit more growth from a seasonal perspective." =============== T H A I L A N D =============== THAI MILITARY: Fitch Affirms 'BB-' Foreign Currency Rating ---------------------------------------------------------- Fitch Ratings, the international rating agency, has affirmed Thai Military Bank's (TMB) Long-term 'BB-' (BB minus) and Short- term 'B' foreign currency ratings after the Australia and New Zealand Banking Group (ANZ) announced it would not be proceeding with an investment in the bank. The Outlook on the Long-term rating is Stable. The agency has also affirmed the Individual rating at 'D/E' and Support rating at '3'. Due to TMB's historical and current ownership links to the Thai government and defense agencies, there is a moderate probability of government support. With ANZ's withdrawal, there is likely to be a higher level of government-funded capital support than would otherwise have been the caste. The bank's ratings also reflect the risk of further large provisions and capital depletion, but recognize to some extent the progress made to date in debt and organizational restructuring. In April 2003 TMB announced plans to raise new capital and dispose of its remaining bad loans. As part of the capital raising plan, the bank plans to first make a rights issue to existing shareholders and then a private placement to new investors to improve its franchise and operations through banking expertise, product and technology transfers. Without the participation of a reputable foreign financial institution as a key new shareholder, capital raising appears more challenging. However, with the Ministry of Finance currently holding a 49% stake, this should provide some support to the capital raising, at least for the rights issue. Fitch expects the proceeds will be used to make further significant provisions to bolster loan loss reserves and absorb losses on the disposal of bad loans, refinance THB10 billion in Tier 1 hybrid capital and provide capital for future growth of the business. The bank recently released unaudited 2003 half-year results, which showed a significant improvement as net profit rose to THB1.6bn from THB456 million during the same period last year. Improved profitability was due mainly to lower provisions and funding costs. However, NPL coverage at end-June 2003 of approximately 27% remains very weak when compared with most Thai banks, implying the risk of further large provisioning. For more information, contact: Chaiyapat Paitoon and Vincent Milton (Bangkok) Phone: +662 655 4762/4759 John Miles (Brisbane) Phone: +61 3222 8616 David Marshall (Hong Kong) Phone: +852 2263 9963 Campbell McIlroy (Media Relations/London) Phone: +44 20 7417 4327 THAI MILITARY: Capital Raising Unaffected by ANZ Bank Walkout ------------------------------------------------------------- Thai Military Bank President Siri Ganjarerndee says the decision of Australia & New Zealand Banking Group Ltd. to cancel a plan to acquire stakes in the bank will not have any substantial effect on its capital raising plans. "We are unaffected by this because we have another plan in which a government fund will help buy shares... But we cannot say anything much at the moment," Mr. Siri told Reuters in an exclusive interview. He did not elaborate in any way regarding government funding. THAI PETROCHEMICAL: PTT Not Interested in Merger for Now -------------------------------------------------------- Those suggesting that PTT PCL and Thai Petrochemical Industry merge their operation will be disappointed. PTT literally doused hopes of that happening in a statement released to the Stock Exchange of Thailand last week. "At present, PTT and its subsidiaries do not have any policy to integrate TPI as part of PTT's business," the statement reads. "PTT's investment consideration is based on the economic return of the project emphasizing long-term value." According to Dow Jones, in contrast to PTT, which is one of Thailand's largest oil and gas conglomerate, TPI is currently the country's biggest debt-restructuring caste. TPI's debt plan administrator, Pala Sookawesh, was the first one, however, to suggest that both companies merge operations. Dow Jones quoted Mr. Pala saying recently that the two could benefit from synergies if they pool some of their operations. He said the synergy may not directly involve PTT, but its units such as Thai Oil Co., Aromatics (Thailand) PCL (H.ATC), or Thai Olefins Co. He, however, admitted there must be a thorough study before any such plan would be carried out. Aside from being TPI's plan administrator, Mr. Pala also serves on PTT's board. ********* 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 ***