/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/031023.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, October 23, 2003, Vol. 6, No. 210 Headlines A U S T R A L I A AMP LIMITED: Regulator Censures NAB's Cicutto AUSTRIM NYLEX: AU$100 Million Capital Hike Oversubscribed DJF PTY: Ex-director Pleads Guilty to Fraud Charges MAYNE GROUP: Hospitals Sale A Dress Rehearsal, Say Analysts QANTAS AIRWAYS: New Zealand's Final Ruling on Alliance Out Today TRANSAUSTRALIAN AIR: Sold to National Jet Systems for AU$26M C H I N A & H O N G K O N G GOLD CLEVER: Bank of China Files Winding up Petition GOLD LIGHT: Court Sets Winding up Hearing November 19 GREENWALLS BIOENGINEERING: Silver Ben Seeks Firm's Wind up OSAKA ELECTRONICS: Hearing on Winding up Petition November 19 UNION EMPIRE: Winding up Hearing Set November 19 I N D O N E S I A GARUDA INDONESIA: Govt to Convince Creditors to Grant More Loans INDONESIAN SATELLITE: US$200 Million Notes Assigned 'B2' INDONESIAN SATELLITE: Stock Continues to Rise J A P A N MITSUBISHI MOTORS: S&P Downgrades Rating to 'B+pi' NIPPON TELEGRAPH: Teams Up With Motorola NISSHO IWAI: S&P Assigns 'B' Rating NISSHO IWAI: Issues Convertible Bonds SOGO CO.: Ex-Hiroshima Head Gets Suspended Term K O R E A ASIAN AIRLINES: Opens Incheon-Auckland Route HANARO TELECOM: AIG-Newbridge Capital Offer Wins Bid HYUNDAI GROUP: Ends Corporate Restructuring Office SK GROUP: Units Fined US$25M for Unfair Trading Practices SK GROUP: Don-woong Takes US$8.5M From Slush Fund SK NETWORKS: SK Corp. Set to Finalize Bailout M A L A Y S I A CONSTRUCTION AND SUPPLIES: KLSE Delists Securities EPE POWER: KLSE Sets Petition Hearing December 4 RHB SAKURA: SC Extends Proposal Deadline to April 9 SASHIP HOLDINGS: KLSE Delists Securities SURIA CAPITAL: Issues Litigation Update TA ENTERPRISE: Unit Executes RSLS P H I L I P P I N E S ABS-CBN BROADCASTING: Clarifies Php1B Revenue Report ABS-CBN BROADCASTING: Plans to Issue US$150M in Senior Notes MANILA ELECTRIC: ERC Probes Firm, 13 Other Utilities NATIONAL BANK: NPL Ratio 50% as of September 19 NATIONAL BANK: Swings to P127M Profit in January-September NATIONAL POWER: ERC Grants Revised Generation Rates Proposal NATIONAL STEEL: Rejects Bid Offers From Two Foreign Firms S I N G A P O R E ASTI HOLDINGS: Issues Notice of Director's Interest ASTRO CONSTRUCTION: Issues Dividend Notice CONTECH REALTY: Creditors Must Submit Claims by November 17 DATELINE FORWARDING: Releases Winding Up Order Notice ITALIAN FASHION: Releases October 13 AGM Resolutions LIAN CHEONG: Petition to Wind Up Pending NEWTON ENGINEERING: Issues Winding Up Order Notice POPULAR HOLDINGS: Creditors Wind Up Inactive Unit WINEDGE ELECTRONICS: Issues Debt Claim Notice to Creditors T H A I L A N D ASIA HOTEL: Posts Update on Debt Restructuring THAI PETROCHEMICAL: Creditors Offer US$160 Million Credit Line - - - - - - - - ================= A U S T R A L I A ================= AMP LIMITED: Regulator Censures NAB's Cicutto --------------------------------------------- National Australia Bank CEO Frank Cicutto was ordered Tuesday to explain to the Australian Competition and Consumer Commission why he had told analysts the regulator will not interfere with the bank's plan to takeover AMP Limited. The order came after the regulator issued a brief statement to the stock exchange Monday denying it had assured the bank of non-interference should it push through with the takeover. In an interview with analysts recently, Mr. Cicutto made it appear that he had been in close contact with the regulator, who had ostensibly guaranteed approval of its plans. "We believe that the ACCC requirements will not be a key issue and we certainly wouldn't be going ahead if we thought it would be a material impediment to the process," Mr. Cicutto was quoted by several reports as saying. But ACCC Chairman Graeme Samuel denied meeting with Mr. Cicutto over the matter. "It is believed Mr. Cicutto had talked to Mr. Samuel earlier and said he understood that any deal on AMP required ACCC clearance on competition issues," The Age said. In a statement, Mr. Samuel said: "Should an acquisition proposal be brought forward, it would be dealt with in the normal manner." AUSTRIM NYLEX: AU$100 Million Capital Hike Oversubscribed --------------------------------------------------------- A wide range of Australian institutions, professional investors and existing shareholders supported Austrim Nylex's AU$100 million capital raising, which was formally closed yesterday. Citing the company's disclosure to the Australian Stock Exchange Wednesday, Asia Pulse said about 5,000 shareholders participated in the share purchase plan and total applications received were marginally above AU$20 million (US$13.97 million). The company said it will accept around AU$400,000 (US$279,400) in over- subscriptions. "Directors are pleased that the Share Purchase Plan reached our expected target of AU$20 million (US$13.97 million) and that shareholders will not be scaled back in their purchases of shares as a result," Chairman Dick Nitto said in a statement. "Both the placement and the Share Purchase Plan are significant steps in Austrim Nylex's strategic plan to return the group to a very positive financial position, which with further assets sales, will see our net debt levels fall to an expected AU$196 million (US$136.91 million) by the end of the 2003 calendar year, allowing us to finalize new banking facilities on more favorable terms," Mr. Nitto added. The company said it will use AU$75 million of the proceeds to pay down debt, with the remainder to go towards working capital and costs. DJF PTY: Ex-director Pleads Guilty to Fraud Charges --------------------------------------------------- Mark Anthony Johnstone, 46, of Tamworth New South Wales, today pleaded guilty in the Supreme Court of Tasmania to six counts of being knowingly involved in fraudulent conduct. The charges were laid following an investigation by the Australian Securities and Investments Commission (ASIC) into the failure of DJF Pty Ltd, which traded as MI Machinery at Youngtown in Launceston, Tasmania. DJF Pty Ltd was involved in the sale of farm and earth-moving equipment and went into liquidation on 4 May 1999 with debts of more than $2.5 million. ASIC alleged that Mr. Johnstone, while a director of DJF, knowingly assisted DJF in fraudulently obtaining the financing of more than $769,000 from several banks and finance companies. The companies defrauded included National Mutual, Esanda, BankWest and Trust Bank. Mr. Johnstone was remanded in custody until 29 October 2003 for sentencing. The matter is being prosecuted by the Commonwealth Director of Public Prosecutions. MAYNE GROUP: Hospitals Sale A Dress Rehearsal, Say Analysts ----------------------------------------------------------- Some analysts believe the sale of Mayne's hospitals business is a prelude to an eventual sale of the entire group, Asia Pulse said Wednesday. In an interview with the news agency, Tolhurst Noall's Marcus Padley cited the previous work of Managing Director Stuart James at Colonial, the wealth management group he sold to Commonwealth Bank of Australia Ltd. Incidentally, Mr. Stuart partnered with former Mayne CEO Peter Smedley to make that deal possible. "He will be fully versed on how to do the same with Mayne. The sale of the hospitals is all part of grooming Mayne for a takeover - brokers have takeover valuations over AU$4.00," Mr. Padley told Asia Pulse. Another analysts who talked to Asia Pulse, Citigroup Smith Barney's Andrew Goodsall, agreed there might be some substance in the takeover rumors: "From here on in, that's going to be the question in the stock - do we have a break-up story?" Mayne, which wrote down the value of its hospital business by AU$341 million in August, will be left with its pharmaceutical and medical diagnostics businesses after the sale, the report said. Ratings agency Moody's lowered Mayne's senior unsecured ratings to Baa3 from Baa2 and short term rating to Prime-3 from Prime-2 after the announcement of the sale. It also maintained all ratings on review for further possible downgrade. QANTAS AIRWAYS: New Zealand's Final Ruling on Alliance Out Today ---------------------------------------------------------------- The final verdict of New Zealand's competition watchdog on the proposed alliance of Qantas Airways and Air New Zealand will be released today, according to Dow Jones. Originally expected Friday, the decision will be released a day earlier, said the report without citing any reason. The proposed alliance would see Qantas take a 22.5% stake in Air New Zealand. Earlier this year, the Australian competition regulator rejected the alliance, while the New Zealand body similarly junked it in a draft ruling. The report to be released today will be the latter's final decision on the matter. The Australian ruling is on appeal. TRANSAUSTRALIAN AIR: Sold to National Jet Systems for AU$26M ------------------------------------------------------------ National Jet Systems bought out of administration the Melbourne- based TransAustralian Air, as part of its ambition to double freight operations, The Advertiser said yesterday. Under the AU$26.5 million deal, the Adelaide-based buyer acquired six Boeing 727s, which will be used to service a three- year contract with Australian air Express (AaE) worth US$100 million. In addition, it also acquired about 100 staff and jet- based operations at Tullamarine Airport. National Jet already operates three Boeing 146s for AaE -- the Qantas-Australia Post joint venture for mail and commercial airfreight, according to The Advertiser. National Jet Managing Director Daniela Marsilli expects the deal to more than double its freight operations. She said the deal adds more than 59 million kilograms a year to its overnight freight delivery capacity across Australia. National Jet is Australia's third-largest high-capacity aircraft operator with more than 1,000 staff in Australia and Papua New Guinea, The Advertiser said. ============================ C H I N A & H O N G K O N G ============================ GOLD CLEVER: Bank of China Files Winding up Petition ---------------------------------------------------- The High Court of Hong Kong will hear on November 19, 2003 at 10:00 a.m. the petition seeking the winding up of Gold Clever Trading Limited. Bank of China (Hong Kong) Limited of 14/F., Bank of China Tower, No. 1 Garden Road, Central, Hong Kong filed the petition on September 25, 2003. Chow, Griffiths & Chan represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Chow, Griffiths & Chan, which holds office at Room 1902-04, 19th Floor, Hang Seng Bldg., 77 Des Voeux Road Central Hong Kong. GOLD LIGHT: Court Sets Winding up Hearing November 19 ----------------------------------------------------- The High Court of Hong Kong will hear on November 19, 2003 at 10:00 a.m. the petition seeking the winding up of Gold Light Development Limited. Bank of China (Hong Kong) Limited of 14/F., Bank of China Tower, No. 1 Garden Road, Central, Hong Kong filed the petition on September 25, 2003. Chow, Griffiths & Chan represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Chow, Griffiths & Chan, which holds office at Room 1902-04, 19th Floor, Hang Seng Bldg., 77 Des Voeux Road Central Hong Kong. GREENWALLS BIOENGINEERING: Silver Ben Seeks Firm's Wind up ---------------------------------------------------------- The High Court of Hong Kong will hear on November 12, 2003 at 9:30 a.m. the petition seeking the winding up of Greenwalls Bioengineering Limited. Silver Ben Development Limited of Room 704, Unicorn Trade Centre, 127-11 Des Voeux Road Central, Hong Kong filed the petition on September 17, 2003. K.Y. Lo & Co. represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing K.Y. Lo & Co., which holds office at Room 704, Unicorn Trade Centre, 127-131 Des Voeux Road Central Hong Kong. OSAKA ELECTRONICS: Hearing on Winding up Petition November 19 ------------------------------------------------------------- The High Court of Hong Kong will hear on November 19, 2003 at 9:30 a.m. the petition seeking the winding up of Osaka Electronic Equipment Company Limited. Bank of China (Hong Kong) Limited of 14/F., Bank of China Tower, No. 1 Garden Road, Central, Hong Kong filed the petition on September 23, 2003. Messrs. Wat & Co. represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Messrs. Wat & Co., which holds office on the 12th Floor, Chuang's Tower, 30-32 Connaught Road Central Hong Kong. UNION EMPIRE: Winding up Hearing Set November 19 ------------------------------------------------ The High Court of Hong Kong will hear on November 19, 2003 at 10:00 a.m. the petition seeking the winding up of Union Empire Enterprises Limited. Bank of China (Hong Kong) Limited (the successor corporation to Hua Chiao Commercial 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 September 24, 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 Floor, Bank of China Tower, No. 1 Garden Road, Central Hong Kong. ================= I N D O N E S I A ================= GARUDA INDONESIA: Govt to Convince Creditors to Grant More Loans ---------------------------------------------------------------- The government itself will spearhead the restructuring of flag carrier, Garuda Indonesia, Asia Times learned recently. Ferdinand Nainggolan, a deputy at the office of the state minister for state enterprises, in an interview recently told Asia Times the government will ask creditors to open a new credit facility for the troubled airline. He did not say whether or not the government will guarantee the loan. The carrier currently owes creditors US$1.01 billion. INDONESIAN SATELLITE: US$200 Million Notes Assigned 'B2' -------------------------------------------------------- The proposed US$200 million 144A and Reg S issue of Indosat Finance Company B.V., a wholly owned subsidiary of Indosat has been assigned a provisional foreign currency issuer rating of (P)B2, Jakarta Post said Tuesday. This rating is similar to that of parent, PT Indonesian Satellite Corporation Tbk, whose outlook is stable, the report said, citing a statement of Moody's Investors Service. The agency said the rating is based on the unconditional and irrevocable guarantee to be provided to the securities by Indosat, PT Satelit Palapa Indonesia (Satelindo) and PT Indosat Multimedia Mobile (IM3) on a joint- and several-basis. The provisional rating is based on a review of documentations as of October 16, 2003. The paper said the securities will be sold in a privately negotiated transaction without registration under the Securities Act of 1933 under circumstances reasonably designed to preclude a distribution thereof in violation of the Act. The issuance will be designed to permit resale under Rule 144A. Moody's is expected to assign a B2 definitive rating upon review of the final documentation and a successful draw down of the dollar bonds, rupiah bonds and rupiah bank loans. INDONESIAN SATELLITE: Stock Continues to Rise --------------------------------------------- PT Indonesian Satellite Corp. continued to edge higher on the stock market, which is positively viewing the planned merger of its three cellular units, and the units' debt refinancing program, AFX-Asia said. Yesterday, Indosat stocks gained 350 rupiah, pushing its value to 11,650 rupiah. This despite the composite index dropping 0.716 points at 646.255. BNI Securities Analyst Adrian Rusmana told AFX-Asia the strong interest in Indosat indicates investors are still looking at the positive sides of the merger and refinancing plans. He believes Indosat could go as high as 12,000 rupiah if the broader market sentiment remains positive. "Investors are still bullish on the stock. They have yet to question Indosat's ability to service its debt in the future after the refinancing program," he told AFX-Asia. ========= J A P A N ========= MITSUBISHI MOTORS: S&P Downgrades Rating to 'B+pi' -------------------------------------------------- Standard & Poor's Ratings Services downgraded its corporate credit rating on Mitsubishi Motors Corporation to 'B+pi' from 'BB-pi', reflecting credit losses and deteriorating sales performance in North America. The rating action also takes into account the Company's reduced financial flexibility, stemming from its weaker access to the ABS market and the challenges facing Chrysler Corporation, the U.S. operations of DaimlerChrysler--the largest shareholder in Mitsubishi Motors. The rating could be lowered further if the credit-loss situation worsens or deterioration in Mitsubishi Motors' performance in the U.S. accelerates significantly in the near term. Mitsubishi Motors has lowered its full-year net-income projections for fiscal 2003 (ending March 31, 2004) to 10 billion yen from 40 billion yen due to the challenges in North America, including soaring credit losses at its U.S. captive finance operations stemming from high-risk loans underwritten in recent years. The Company expects to record extraordinary provisions totaling about 50 billion yen, based on a reassessment of its outstanding loan portfolio. The Company has also implemented stricter underwriting policies and reduced origination of such high-risk loans. Given an expected further deterioration in Mitsubishi Motors' profitability and cash flow, coupled with relatively high capital investment requirements over the next two to three years, the Company's capital structure is likely to weaken, with total debt to capital climbing back to above 80 percent over the next few years. Mitsubishi Motors' cash flow protection measures are likely to remain weak, with funds from operations to total debt below 10 percent. The Company's access to the ABS market has also come under pressure since a number of ABS transactions issued by its U.S. captive finance subsidiary have shown poor performance. Mitsubishi Motors has benefited from an alliance with DaimlerChrysler (BBB+/Negative/A-2), its largest shareholder, with a 37 percent stake. DaimlerChrysler has sent a team of managers to lead the Japanese automakers' turnaround efforts, and Mitsubishi Motors is also expected to enjoy cost reductions from using common platforms and components. However, given Chrysler's increasing losses and declining market share in North America, Standard & Poor's believes that Mitsubishi Motors cannot rely on additional support from DaimlerChrysler in the near term. NIPPON TELEGRAPH: Teams Up With Motorola ---------------------------------------- Motorola and Nippon Telegraph & Telephone (NTT) on Monday jointly launched new Internet Protocol technology and router software for next-generation broadband services. The product technology, called multicast multi-protocol label switching, enables high-quality multicast streaming and interactive multimedia communication services. NTT said that multicast MPLS would allow ISPs to offer video communication services with much higher reliability via current IP multicasting technology. The Company said it would demonstrate the multicast MPLS at the "MPLS2003" international conference in Washington, D.C., Oct. 26-28. Motorola will make a formal announcement in the U.S. about the technology on Oct. 27, NTT said. NTT is also considering adapting the technology to different networks, including a next-generation fiber-optic network. NISSHO IWAI: S&P Assigns 'B' Rating ----------------------------------- Standard & Poor's Ratings Services assigned Tuesday its 'B' long-term issuer rating to Nissho Iwai Corporation and its 'BB-' issue ratings to the Company's outstanding straight bonds. The outlook on the issuer rating is stable. At the same time, Standard & Poor's withdrew its 'Bpi' rating based on public information on the Company. In April 2003, Nissho Iwai and Nichimen Corp. jointly established a holding Company, Nissho Iwai-Nichimen Holdings Corp., under which the companies are now operating as 100 percent subsidiaries. Since the two companies are likely to share risks and advantages within the holding Company structure, the credit quality of Nissho Iwai will be linked to the consolidated creditworthiness of Nissho Iwai-Nichimen Holdings. "The current rating takes into account the possibility of some deterioration in the group's financial profile in the medium to long term," said Standard & Poor's credit analyst Yuri Yoshida. "However, if additional asset restructuring triggers massive losses that threaten to erode capitalization, there could be a revision of the outlook or a downgrade," she added. The holding Company raised 273 billion yen in capital in May 2003, mainly by issuing preferred stock. Although this contributed to the enhancement of the group's capital base to a certain extent, the group's capitalization is not sufficiently sound, given the risks associated with its investment and loan assets and deferred tax assets. Although Nichimen and Nissho Iwai have been disposing of problem assets, further asset restructuring may also lead to the emergence of additional losses. Amid a difficult business environment, the holding Company may be unable to achieve its target of �100 billion in recurring profits in fiscal 2005. Liquidity support from the UFJ Group, Nissho Iwai-Nichimen group's main bank, will be maintained. However, given the group's high dependence on short-term borrowing, a key credit factor will be whether UFJ and other major creditor banks will maintain their current lending policy to the Nissho Iwai- Nichimen group. The issue ratings on Nissho Iwai's straight bonds are higher than the issuer rating by two notches, reflecting expected support from UFJ Bank if Nissho Iwai has trouble repaying the debt. In such a case, it is likely that only some creditors, including lender banks, would incur losses and that outstanding bonds would be unlikely to default. NISSHO IWAI: Issues Convertible Bonds ------------------------------------- Nissho Iwai-Nichimen Holdings Corporation (NNH) has resolved to issue convertible bonds denominated in Japanese yen, at the meeting of its Board of Directors held on October 17, 2003. Through the 50 billion yen capital-raising commitment facility established with Lehman Brothers' group Company in April 2003, NNH will issue convertible bonds in the amount of 5 billion yen. Yen Denominated Bonds with Stock Acquisition Rights due November 7, 2005 Issue Amount Y5 billion Maturity 2 years Coupon 0 percent Conversion Feature Convertible into NNH common stock Initial Conversion Price Y740 Conversion Price Reset: Conversion price will be revised on a monthly basis, on the trading day following the first Friday of every calendar month commencing with December 2003, to the lower of: - Prevailing conversion price - 5-day average of closing prices (Floor: 75 percent of prevailing conversion price) Floor: Initial conversion price x30 percent 130 percent Soft Call: 130 percent soft call at par after 6 months, 20 business day trigger Hard Call: 102 percent after 6 months at the option of NNH 1. Use of Proceeds: The proceeds from the issue of the Yen Denominated Bonds with Stock Acquisition Rights will form loans to Nichimen Corporation and Nissho Iwai Corporation, which are wholly-owned subsidiaries of NNH. 2. Information on the Purchaser: Purchaser: Lehman Brothers Commercial Corporation Asia Limited Address: Level 38, One Pacific Place, 88 Queensway, Hong Kong Capital: Capital USD2, Additional Paid-in-capital USD39,650,000 Business Description: Diversified financial services Relationship with NNH: Together with its affiliate Company, the Purchaser holds a total of 1,500,000 shares of 1st series Class III Preferred Stock issued by NNH. On April 1, Nissho Iwai and trading house Nichimen Corporation 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. SOGO CO.: Ex-Hiroshima Head Gets Suspended Term ----------------------------------------------- Yoshimi Waseda, former President of Hiroshima Sogo, a local outlet of failed department store operator Sogo Co., was sentenced Tuesday to 30 months in prison, suspended for four years, for causing the Company to incur 320 million yen in losses by making it buy leftover inventory, according to Kyodo News. The Hiroshima District Court handed down the sentence Waseda for aggravated breach of trust. ========= K O R E A ========= ASIAN AIRLINES: Opens Incheon-Auckland Route -------------------------------------------- Asiana Airlines Inc. will launch a new air route Monday linking Incheon directly with Auckland, New Zealand, according to Yonhap News. The air carrier will operate a B777-200 passenger jet on the new route four times a week: Monday, Wednesday, Friday and Sunday. The airline plans to sell its assets for 258.3 billion won (US$219.8 million), as a part of the group's restructuring plans, TCR-AP reported recently. The airline also plans to scale back unprofitable international routes. Kumho, which holds interests in airline carrier, tire maker, building and insurance firms, has been under financial stress due to its heavy debt load following its expansionary drive. HANARO TELECOM: AIG-Newbridge Capital Offer Wins Bid ---------------------------------------------------- American International Group (AIG) and Newbridge Capital on Tuesday won a bidding war to buy a 39.8 percent stake in Hanaro Telecom for 500 million dollars, Channel News Asia reports. The defeat deprives LG Group of its status as the largest shareholder, with the entry of the AIG-Newbridge companies set to reduce LG's stake from 18 percent to around 10 percent. The deal received about 64 percent of the votes at a shareholders meeting Tuesday, while a rival bid by South Korea's LG Group and Carlyle Group of the United States obtained some 20 percent. LG Group and Carlyle had proposed they would jointly invest 640 million dollars to acquire a 50 percent stake in Hanaro. Most of the Company's small shareholders cast their votes for the offer from the AIG-Newbridge consortium, which was also backed by the Hanaro management. HYUNDAI GROUP: Ends Corporate Restructuring Office -------------------------------------------------- The Hyundai Group plans to dismantle its corporate restructuring office in the wake of the inauguration of Hyun Jeong-eun, the wife of the late Hyundai Group Chairman Chung Mong-hun, as de facto group chairwoman on Tuesday, Asia Pulse reports. As soon as the procedures for wealth transfer from the late Chung to his bereaved family are finished, the group's corporate restructuring office will be closed. Hyun took office as chairwoman of Hyundai Elevator, the de facto holding company for the group, inheriting the group chairmanship from her deceased husband, who committed suicide in August. Under Hyun's leadership, Hyundai Group will be restructured into five major affiliates -- Hyundai Elevator, Hyundai Merchant Marine, Hyundai Logistics, Hyundai Asan and Hyundai Securities. Hyundai Elevator is the largest shareholder in Hyundai Merchant Marine, with a 15.16 percent stake in the firm. Hyundai Merchant and Hyundai Elevator are the two main pillars of the group. SK GROUP: Units Fined US$25M for Unfair Trading Practices ---------------------------------------------------------- The Fair Trade Commission ordered SK Group affiliates to pay 29 billion won or $25,000,000 for unfair trading practices. According to Bloomberg News, the Commission was investigating six industrial groups for unfair trading prac4tices like "propping up loss-making units with the profits of successful arms, fraudulent bookkeeping, corruption, and share-price manipulation." Approximately 32 billion won in fines were imposed on five of the six industrial groups. SK Group affiliates garnered the lion share of the fines. They plan to appeal the Commission's ruling. (SK Global Bankruptcy News, Issue No. 6; Bankruptcy Creditors' Service, Inc., 609/392-0900) SK GROUP: Don-woong Takes US$8.5M From Slush Fund ------------------------------------------------- Grand National Party lawmaker Choi Don-woong confessed that he accepted 10 billion won (US$8.5 million) from SK Group before the Presidential election on December 2002, according to Yonhap News. Prosecutors said they are now trying to find out the exact use of the 10 billion won that Choi, Chief Financier of the Presidential election campaign headquarters for then-GNP candidate Lee Hoi-chang, illegally raised from the conglomerate. SK NETWORKS: SK Corp. Set to Finalize Bailout --------------------------------------------- SK Corporation will finalize this week its US$722 million rescue package for its debt-ridden trading affiliate, SK Networks Co. Ltd., according to Reuters. SK Corporation initially agreed in June to convert 850 billion won (US$722.2 million) in debt owed by SK Networks into equity as part of a creditor-led bailout package. SK Networks, the trading arm of South Korea's fourth-biggest conglomerate, SK Group, plans to issue 2.7 trillion won worth of common and preferred shares on October 27, kick starting the creditor-led restructuring program. SK Networks markets oil products for SK Corporation and cell phones for SK Telecom Co. Ltd, the country's top mobile phone carrier. =============== M A L A Y S I A =============== CONSTRUCTION AND SUPPLIES: KLSE Delists Securities -------------------------------------------------- The Kuala Lumpur Stock Exchange (KLSE) in exercise of its powers under Paragraph 16.17 of the Exchange's Listing Requirements, has decided to de-list the securities of the Company from the Official List of the Exchange as the Company does not have an adequate level of financial condition to warrant continued listing on the Official List of the Exchange. Accordingly, please be informed that the securities of the above Company will be removed from the Official List of the Exchange at 9.00 am on Tuesday, 4 November 2003. With respect to the securities of the Company which are deposited with the Malaysian Central Depository Sdn Bhd (MCD), please be informed that the securities of the Company may remain deposited with the MCD notwithstanding the de-listing of the securities of the Company from the Official List of the Exchange. It is not mandatory for the securities of the Company to be withdrawn from MCD. Shareholders of the Company who intend to hold their securities in the form of physical certificate can withdraw these securities from their CDS accounts with MCD, at anytime after the securities of the Company are de-listed from the Official List of the Exchange by submitting the application form for withdrawal in accordance with the procedures prescribed by MCD. Shareholders of the Company can contact any Member Company of the Exchange and/or MCD's helpline at 03-20717711 or 03-20717723 for information on the withdrawal procedures. EPE POWER: KLSE Sets Petition Hearing December 4 ------------------------------------------------ On behalf of EPE Power Corporation Berhad (EPE), Commerce International Merchant Bankers Berhad announced that EPE had, at the hearing of the Summons for Direction held on 15 October 2003, obtained the Kuala Lumpur High Court's directions in respect of EPE's petition filed on 22 September 2003 to the Kuala Lumpur High Court for the proposed capital reduction by EPE involving the cancellation of RM0.50 of the par value of each existing ordinary share of RM1.00 each and thereafter, the consolidation of every two (2) resultant ordinary shares of RM0.50 each into one (1) ordinary share of RM1.00 each. The Kuala Lumpur High Court had fixed the hearing for the said petition on 4 December 2003. Collectively known as "the Proposed EPE Restructuring Scheme" are as follows: - Proposed Capital Reduction - Proposed Acquisitions - Proposed Debt Restructuring - Proposed Rights Issue - Proposed Increase In Authorized Share Capital RHB SAKURA: SC Extends Proposal Deadline to April 9 --------------------------------------------------- The Boards of Directors of Lion Corporation Berhad (LCB), Lion Industries Corporation Berhad (LICB) and Amsteel Corporation Berhad (ACB) jointly announce that following an application by LCB, LICB and ACB, the Securities Commission has given an approval to LCB, LICB and ACB to extend the deadline to complete the following proposals contemplated under the GWRS (details of which are particularized in the respective Company's Circular to Shareholders dated 9 January 2003 to 9 April 2004: a) For LCB, the renounceable restricted offer for sale of up to approximately 67.61 million shares in ACB by LCB to the eligible shareholders of ACB; b) For LICB, the corporate proposal by Amsteel Mills Sdn Bhd (AMSB) to offer the AMSB's scheme creditors the opportunity to tender their debts for cancellation by the AMSB's scheme companies in consideration for shares in ACB and Lion Diversified Holdings Berhad (formerly known as Chocolate Products (Malaysia) Berhad); and c) For ACB, the renounceable restricted offer for sale of up to approximately 226.85 million shares in LCB by the ACB group of companies to eligible shareholders of LCB and the issue of approximately 251.92 million new 4 1/2 years warrants to shareholders of ACB. SASHIP HOLDINGS: KLSE Delists Securities ---------------------------------------- The Special Administrators of Saship Holdings Berhad on 21 October 2003 received a letter by fax, from the Kuala Lumpur Stock Exchange (KLSE) informing the Company that KLSE, after having considered all the facts and circumstances of the matter including the written and oral representations of the Company and upon consultation with the Securities Commission, KLSE in the exercise of its powers under paragraph 16.17 of KLSE's Listing Requirements (LR) has decided to de-list the securities of the Company from the Official List of KLSE as the Company does not have an adequate level of financial condition to warrant continued listing on the Official List of KLSE unless the followings conditions are met: a. SHB makes the Requisite Announcement on its regularization plans on or before 31 October 2003 (the deadline) as requested by the Special Administrators; and b. SHB submits its regularization plans to the relevant authorities for approval within fourteen (14) days from the date of the Requisite Announcement. KLSE further decided that in the event SHB fails to obtain any of the authorities' approval necessary for the implementation of its regularization plans within the time frames stipulated by the relevant authorities, the securities of SHB will be de- listed from the Official List of the KLSE. KLSE also decided that in the event any one of the circumstances set out below occurs, the de-listing of the securities of SHB from the Official List of the KLSE will be effected without further representations from SHB and without any further consideration of the matter by KLSE and the securities of SHB shall be removed from the Official List of the KLSE upon the expiry of fourteen (14) days from the date of occurrence of any one of the circumstances set out below:- a. SHB fails to make the Requisite Announcement on or before the Deadline; b. SHB fails to submit its regularization plans to the relevant authorities for approval within fourteen (14) days from the date of the Requisite Announcement; c. SHB fails to obtain the relevant authorities' approval of its regularization plans; d. SHB has obtained the relevant authorities' approval but fails to implement its regularization plans within the time frames prescribed by the relevant authorities. In arriving at this decision, KLSE relied, amongst others, upon the following factors: a The Special Administrators were appointed pursuant to the Pengurusan Danaharta Nasional Berhad Act 1998 only on 28 April 2003 and had less than 2 months from the date of their appointment ie. Until 18 June 2003 to implement the regularization plans as approved by the Securities Commission; b Upon their appointment, the Special Administrators are required by Section 31 of the Pengurusan Danaharta Nasional Berhad Act 1998 to make into custody or control all assets to which SHB is or appears to be entitled and further Section 44 of the Danaharta Nasional Berhad Act 1998 requires the Special Administrators to prepare a workout proposal setting out the plan with respect to SHB. Due regard was given to the complexity and specialized nature of the business of the Company which involves cross border transactions, 39 material litigation cases, renegotiation of the contract sum of the contract with Bintulu Port Berhad which is the lifeline of the Company and certain special assets like the power generators which had to be valued by specialists require considerable time by the Special Administrators to assess the viability of the operations and business of the Company prior to the preparation of the workout proposal to regularize the financial condition of SHB. c Nevertheless, SHB had failed to implement its regulation plans within the final extension of time granted by the Securities Commission ie. Until 18 June 2003; d SHB's announcement on 26 June 2003 that SHB would not proceed with the implementations of its regularization plans as the Securities Commission's approval for its regularization plans via its letter dated 19 September 2000 has lapsed; e As at 18 June 2003 ie. The final extension of time granted by the Securities Commission for implementation, SHB has had a total of 33 months to implement its regularization plans since the Securities Commission's approval of SHB's regularization plans via its letter dated 19 September 2000; f As at 8 September 2003, SHB has had a total of 30 months to regularize its financial condition since SHB's first announcement on 26 February 2001; g. All Practice Note 4/2001 (PN4) companies are required to regularize their financial condition within the prescribed time frames stipulated by the Exchange pursuant to paragraph 8.14 of the Listing Requirement and PN4 and the time frame granted by the Securities Commission for implementation of their regularization plans; h. In the opinion of the KLSE, adequate time and opportunity has been accorded to SHB to regularize its financial condition but the circumstances are such as to warrant one last opportunity to regularize its financial conditions subject to the abovementioned conditions. These final conditions represent the final opportunity that is to be granted to the Company; and i. The requirement for companies to have an adequate level of financial condition serves to ensure that companies listed on the Official List are of a certain minimum quality. Companies that have a certain minimum level of financial condition serve to preserve and sustain market integrity and investors' confidence. SURIA CAPITAL: Issues Litigation Update --------------------------------------- Suria Capital Holdings Berhad announced that on 17th October 2003, the Company (as the Fourth Defendant) was served with Shah Alam High Court Originating Summon No. MT4-24-1150-2003 by Southern Finance Bhd (formerly known as United Merchant Finance Bhd) (Plaintiff) through their KL based solicitors Messrs. Sothi & Ang. The First, Second and Third Defendants are Soo Suah Hoon, Soh Guat Cheng and Soo Sheo Bee respectively whereas the Fifth Defendant is Hong Leong Housing Sdn. Bhd. The Originating Summon, which was filed in the High Court of Shah Alam as Originating Summon No.: MT4-24-1150-2003 is an application by the Plaintiff for a declaration as follows: a) The Loan Agreement and the Deed of Assignment made between the Plaintiff and the First, Second and Third defendant on or around the month of June 1997 to assign the rights and interest of the First, Second and the Third defendant under the Sale and Purchase Agreement between the First, Second and Third defendant and the Suria Capital Holdings Berhad and Hong Leong Housing Sdn. Bhd. dated 6th June, 1996 is revoked. b) The Power of Attorney granted by the First, Second and Third defendant to the Plaintiff for the purpose of carrying out all and every rights of the First, Second and Third defendant under the Sale and Purchase Agreement entered into between the First, Second and Third defendant and Suria Capital Holdings Berhad and Hong Leong Housing Sdn. Bhd. dated 6th June 1996 has and hereby revoked; c) The Plaintiff has no right and/or interest in the Sale and Purchase Agreement entered into between the First, Second and Third defendant and Suria Capital Holdings Berhad and Hong Leong Housing Sdn. Bhd. dated 6th June, 1996 and also over the Property known as Parcel No. Block 53 within the Housing Development Project known as Sri Angkasa Phase 4B and 4 on the land held under H. S. (D) 444096 P. T. No. 499 Mukim Damansara District of Petaling State of Selangor. d) The rights and interest under the Sale and Purchase Agreement dated 6th June, 1996 entered into between the First, Second and Third defendant and Suria Capital Holdings Berhad and Hong Leong Housing Sdn. Bhd. is hereby reassigned to the First, Second and Third defendant; e) Any other relief deems fit and proper; f) The cost of this application is borne by the Plaintiff. As a defendant, SURIA is required to appear at hearing of the Originating Summons, which is fixed on 5th January, 2004. SURIA will be instructing its Kuala Lumpur-based Solicitors to appear on its behalf and not to object the application. The Originating Summon does not have any adverse material impact on the earning and Net Tangible Assets of SURIA. Announcement Authorized by: DATUK ISMAIL AWANG BESAR Managing Director TA ENTERPRISE: Unit Executes RSLS --------------------------------- TA Enterprise announced that TA First Credit Sdn Bhd (TAFC), a wholly owned subsidiary of TA Enterprise Berhad, executed the following documents pertaining to the Redeemable Secured Loan Stock (RSLS) that will be issued pursuant to Idris' restructuring scheme: 1. Sharing Agreement 2. Subscription Agreement for ICULS-A 3. Subscription Agreement for RSLS 4. Guarantee Agreement According to TCR-AP, TA Enterprise Berhad announced that TA First Credit Sdn Bhd (TAFC), a wholly owned subsidiary of the Company, has agreed to dispense with the condition that the cash amount due to TAFC from the Proposed Share Subscription by Dato' Che Mohd Annuar bin Che Mohd Senawi, amounting to RM37.7 million be paid on or before 30 September 2003. Meanwhile, the date the scheme liabilities are expected to be fully addressed shall remain on 30 November 2003 (Extended Debt Conversion Date). The balance of RM4.3 million cash proceeds due to TAFC shall also be paid on or before the Extended Debt Conversion Date ===================== P H I L I P P I N E S ===================== ABS-CBN BROADCASTING: Clarifies Php1B Revenue Report ---------------------------------------------------- ABS-CBN Broadcasting Corporation clarifies the news article entitled "ABS-CBN reaches P1-B revenue mark in September" published in the September 30, 2003 issue of the BusinessWorld. The article reported that "Media giant ABS-CBN Broadcasting Corp. reached the P1 B mark in revenues for September, an industry source said. This is the fifth consecutive month the Lopez-led broadcasting firm reached 1 billion pesos in revenues. 'We hit a B again. From May to September, the monthly average is at P 1 B,' the sources said. ABS-CBN Broadcasting Corporation ("ABS"), in its letter dated September 30, 2003, disclosed that: "The Company would like to inform the Philippine Stock Exchange (PSE) that ABS-CBN Broadcasting Corporation has not released any information on its September results. Airtime revenues and other financial information will be disclosed when we submit the SEC Form 17-Q for the third quarter 2003." ABS-CBN BROADCASTING: Plans to Issue US$150M in Senior Notes ------------------------------------------------------------ ABS-CBN Broadcasting Corporation plans to issue US$150 million worth of senior secured notes to fund debt payments, additional investment in cable television operations and capital expenditure, according to Business World. Real property, equipment and other assets will secure the notes. It would also be guaranteed by some of its subsidiaries. Standard & Poor's recently gave a "B+" rating to the Company's notes issue. "A key constraining factor in ABS-CBN's rating is the financially distressed situation of its owner Benpres Holdings Corp, which controls 85 percent of shareholders' voting rights in ABS-CBN," Standard & Poor's said. ABS-CBN last month retired a debt with Standard Chartered Bank, which matured in August 2002. It is seeking creditors willing to provide PhP70 million. MANILA ELECTRIC: ERC Probes Firm, 13 Other Utilities ---------------------------------------------------- The Energy Regulatory Commission (ERC) is investigating the Manila Electric Co. (Meralco), and 13 other utilities for possible unauthorized capital expenditures, reports the Inquirer News Service, citing ERC Chairperson Manuel Sanchez. If found guilty these companies will be fined between 50,000 pesos and 50 million pesos each if found guilty of violating the regulation on capital expenditures. "Utilities are required to seek the ERC's approval for any electric capital expenditure projects," Sanchez said, citing Commonwealth Act 146, which requires electric distribution utilities to seek the approval of regulators before building, operating or maintaining new facilities or services, or extending existing facilities. The other utilities under probe, according to ERC records, are Angeles Electric Co., Cabanatuan Electric Corp., Cotabato Light and Power Co., Cagayan Electric Power & Light Co., Dagupan Electric Corp., Ibaan Electric and Engineering Corp., Iligan Light Power Inc., La Union Electric Co., Manson's Corp., Mactan Electric Co., Panay Electric Co., San Fernando Electric Light and Power Co., and Tarlac Electric Co. Inc. NATIONAL BANK: NPL Ratio 50% as of September 19 ----------------------------------------------- Philippine National Bank (PNB) said its non-performing loans (NPL) of 48.06 billion pesos accounted for 50 percent of total loan portfolio as of September 19 compared with 49 percent as of June 19, according to AFX Asia. The bank set aside 16.43 billion pesos as specific provisions for loan losses as of September 19, while general provisions totaled 1.54 billion pesos. Return on equity stood at 0.9 percent. NATIONAL BANK: Swings to P127M Profit in January-September ---------------------------------------------------------- The Philippine National Bank (PNB) continues to gain momentum in its thrust to improve profitability and overall performance entering its second year of a rehabilitation program forged between major owners, the Philippine Government and the Lucio Tan Group, a Company statement said. After years of successive losses, the Bank posted a net income of 127 million pesos for the first nine months of 2003, a big reversal from the 1.52 billion pesos net loss it recorded during the same period last year. According to PNB President & CEO Lorenzo V. Tan, "The positive results of operations were due to substantial improvements in net interest margin, higher fee-based income and reduction in operating expenses. The much-improved performance has likewise enabled the Bank to boost its reserve coverage for probable losses. " President Tan adds that the performance is worth taking note specially since PNB has stayed on track since the beginning of the year, posting net profits monthly since January 2003. Net Interest Margin of P1.17 billion is a recovery from last year's negative P19 million. Interest Income amounted to P5.42 billion, higher than last year's P4.72 billion while Interest Expense this year declined to P4.24 billion from last year's P4.74 billion. Improving cost of funds due to a more favorable deposit mixes and better pricing of loans and deposits were mainly responsible for the positive margin during the first nine months of 2003. Introduction of Priority One checking account targeted at high net worth clients, the launching of a yearlong promo to encourage OFWs and their beneficiaries to increase their deposit balances, and a successful deposit campaign among employees to solicit new deposit accounts contributed in accelerating the growth of low-cost deposits. At end-September 2003, low-cost CA/SA deposits comprised 43 percent of total deposits, comparing favorably to its year-ago ratio of 40 percent. Meanwhile, total deposits grew by P11.86 billion or 9 percent from the end-2002 level to reach P149 billion at end- September 2003. Fee-based and Other Income expanded by 17 percent to P3.76 billion from last year's P3.22 billion. The surge in income was due mainly to the adjustment in the pricing of products and services to align these with market, such as those on remittances and deposit products. Other income was further buoyed by recoveries on foreclosed assets. Total ROPOA sales booked for the first nine months of 2003 amounted to P1.8 billion. Tighter controls in Administrative and Other Operating Expenses further boosted the bottom line as total Other Expenses declined by 8 percent to P4.04 billion in the first three quarters of 2003 from P4.4 billion during the same period last year. Provisions for Probable Losses of P447 million have been set aside for the first nine months of 2003 as compared to the P60 million provisions for the same period in 2002. The positive results are expected to be sustained as the institutional strengthening initiatives and restructuring efforts under the "Good Bank - Bad Bank" strategy are pursued at a more vigorous clip. Low-cost deposits are expected to get a big boost from the recent launching of new as well as re-packaged deposit products for individual as well as corporate depositors. More focused approach in the branches delineating roles separately for sales and service has already started to reap positive results as more and more branches improve their individual profitability performance while at the same time significantly improving levels of customer service. Remittance volumes and fees will continue to benefit from the tie-ups forged recently with overseas institutions 7-Eleven and Bank Mandiri in Hong Kong. The tie-up with 7-Eleven allows OFWs to enjoy the convenience of remitting through any of the 480 7- Eleven stores in Hong Kong 24 hours a day, 7 days a week. Meanwhile, PNB offices in Hong Kong now accept remittances of Indonesian workers in the former Crown Colony, which are then paid out to the workers' beneficiaries in Indonesia using Bank Mandiri's network of branches. Similar tie-ups in other parts of the world are being explored to expand PNB's market and servicing reach. The opening of new remittance centers and offices abroad is also in the pipeline. Recent openings include the sub-branch in Nagoya, Japan and remittance branches in Moreno Valley in California and Scarborough in Ontario, Canada. Meanwhile, the "Bad Bank" has focused its efforts at resolving the P75 billion portfolio of non-performing assets through earnest collection efforts, workouts and restructurings, as well as creative and focused asset management strategies. The asset management program includes sale of properties via monthly public auctions by the appointed auction manager CB Richard Ellis, tie-up with broker organizations to tap into their nationwide broker network coverage for retail and commercial sales, adoption of measures to add value to the properties including leasing, caretaker and maintenance arrangements, and the signing up of Ernst & Young as financial advisor for wholesale strategies for the disposition and resolution of ROPOAs as well as NPLs. NATIONAL POWER: ERC Grants Revised Generation Rates Proposal ------------------------------------------------------------ The Energy Regulatory Commission (ERC) recently granted the National Power Corporation (NPC) and Power Sector Assets and Liabilities Management Corporation (PSALM) a provisional authority to implement the revised generation charges using the Long-Run Avoidable Cost (LRAC) methodology for the Luzon, Visayas and Panay/Bohol Grids. For the Luzon Grid, the approved Annual LRAC Average Rate is PhP2.4717/kWh. For the Visayas and Panay/Bohol Grids, the LRAC shall be applied on a staggered basis in order to cushion the impact on the consumers. The LRAC Rates for the following billing cycle are as follows: September 26 to December 25, 2003: PhP2.5752/kWh (Visayas), PhP2.6125/kWh (Panay/Bohol); December 26, 2003 to March 25, 2004: PhP2.6587/kWh (Visayas), PhP2.7332/kWh (Panay/Bohol); March 26 to June 25, 2004: PhP2.7421/kWh (Visayas), PhP2.8539/kWh (Panay/Bohol); June 26 to September 25, 2004: PhP2.8255/kWh (Visayas), PhP2.9745/kWh (Panay/Bohol). In addition to the LRAC rates, NPC was also authorized to collect PhP0.0245 in Luzon and PhP0.0177 in Visayas and Panay/Bohol for the Franchise and Benefits to Host Communities pursuant to ERC Order dated September 20, 2002. Moreover, NPC was authorized to recover in full the remaining net Fuel and Power Cost Adjustment (FPCA) for the Visayas and provinces of Panay and Bohol within thirty-four (34) months equivalent to an estimated amount of PhP0.05/kWh. Upon the effectivity of the approved rates based on LRAC methodology, the implementation of NPC's Generation Rate Adjustment Mechanism (GRAM) and FOREX in the Luzon, Visayas and Panay/Bohol Grids is considered terminated. However, NPC is directed to file its last GRAM and Incremental Currency Exchange Rate Adjustment (ICERA) petition to recover the deferred generation charge and FOREX for the test periods February 2003 to September 2003. In the Mindanao Grid, NPC and PSALM were directed to continue charging their existing rates, including the GRAM and ICERA. LRAC refers to the total operating cost of an efficient new plant in the Philippines. It promotes efficiencies in capital cost management while ensuring that the electricity industry remains viable for the longer term. In the formulation of the LRAC, the following components were considered: a) Weighted Average Cost of Capital (WACC); b) Capital costs associated with the construction of a plant; c) Fixed operating and maintenance costs; d) Variable operating and maintenance costs; e) Fuel costs; f) Insurance; and g) Peso- Dollar exchange rate. The application of NPC and PSALM on the revised unbundled generation rate and methodology for the determination of generation rates is scheduled for initial hearing on November 10, 2003 at nine o'clock (9:00 A.M.) in the morning at the ERC Hearing Room, 15th Floor, Pacific Center building, San Miguel Avenue, Ortigas Center Pasig City. All interested parties who may wish to comment on or oppose the said application should file their comments and/or oppositions on or before the date of hearing. Copies of the application and its attachments shall be made available to interested parties upon request. NATIONAL STEEL: Rejects Bid Offers From Two Foreign Firms --------------------------------------------------------- Creditors of National Steel Corporation (NSC) rejected a takeover bid from two foreign firms namely Global Infrastructure Holdings Ltd. and LMN Group, NSC liquidator Danilo Concepcion told the Philippine Daily Inquirer. The foreign firms are affiliated with the Mittal family of India. The banks were now left with two options: to call for another round of bidding or to negotiate with interested parties, including the existing bidders. The decision to declare a failed bidding is expected to make it difficult for the government to reopen the NSC mill in Iligan City by February as planned. The creditor-banks are bidding out a lease of NSC assets but are willing to selling the assets. ================= S I N G A P O R E ================= ASTI HOLDINGS: Issues Notice of Director's Interest --------------------------------------------------- Asti Holdings Limited issued a notice of changes in Director Han Chin Fong's interests: Date of notice to Company: 17 Oct 2003 Date of change of interest: Please see notes below Name of registered holder: Han Chin Fong Circumstance(s) giving rise to the interest: Sales in open market at own discretion Information relating to shares held in the name of the registered holder: No. of shares which are the subject of the transaction: 600,000 % of issued share capital: 0.22 Amount of consideration (excluding brokerage and stamp duties) per share paid or received: Please see notes below No. of shares held before the transaction: 1,608,467 % of issued share capital: 0.59 No. of shares held after the transaction: 1,008,467 % of issued share capital: 0.37 Holdings of Director of Subsidiary including direct and deemed interest Deemed Direct No. of shares held before the transaction: 0 1,608,467 % of issued share capital: 0 0.59 No. of shares held after the transaction: 0 1,008,467 % of issued share capital: 0 0.37 Total shares: 0 1,008,467 Date of Sale No. of Shares Consideration per share 15/10/2003 500,000 $0.5415 17/10/2003 100,000 $0.537 No. of Warrants - 99,058 ASTRO CONSTRUCTION: Issues Dividend Notice ------------------------------------------ Astro Construction & Engineering Pte Ltd. issued a notice of intended dividend as follows: Address of Registered Office: Formerly of 10 Jln Besar #10-02 Sim Lim Tower Singapore 208787. Court: Supreme Court, Singapore. Number of Matter: Companies Winding Up No. 51 of 1993. Last Day for Receiving Proofs: 31st October 2003. Name & Address of Liquidator: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118. Dated: 17th October 2003. KAREN LOH PEI HSIEN Assistant Official Receiver. CONTECH REALTY: Creditors Must Submit Claims by November 17 ----------------------------------------------------------- The creditors of Contech Realty Pte Ltd (Members' Voluntary Winding Up), which is being wound up voluntarily, are required on or before 17th November 2003 send in their names and addresses and the particulars of their debts or claims, and the names and addresses of their solicitors (if any), to the liquidators, c/o 47 Hill Street, #05-01 Chinese Chamber of Commerce & Industry Building, Singapore 179365, and if so required are to come in and prove their debts or claims as shall be specified or in default will be excluded from the benefits of any distribution made before such proof. KON YIN TONG WONG KIAN KOK WILLIAM CAVEN HUTCHISON Joint Liquidators. Date: 17th October 2003. DATELINE FORWARDING: Releases Winding Up Order Notice ----------------------------------------------------- Dateline Forwarding Services Pte Ltd issued a notice of winding up order made on the 3rd day of October 2003. Name and address of liquidator: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118. Messrs NG ONG & CHEE Solicitors for the Petitioner. Note: (a) All creditors of the Company should file their proof of debt with the liquidator who will be administering all affairs of the Company. (b) All debts due to the Company should be forwarded to the liquidator. ITALIAN FASHION: Releases October 13 AGM Resolutions ---------------------------------------------------- At a General Meeting of Italian Fashion Fabrics Pte Ltd. duly convened and held at Viale Sarca 223, 20126, Milano, Italy on 13 October 2003, the following resolutions set out below were duly passed: SPECIAL RESOLUTIONS: (a) That the Company be wound up voluntarily pursuant to Section 290(1)(b) of the Companies Act, Cap. 50, and that Messrs Steven Tan Chee Chuan and Douglas Tan Kay Yeow of 138 Cecil Street, #15-00 Cecil Court, Singapore 069538, be and are hereby appointed as Joint Liquidators for the purpose of such winding- up. (b) That the Liquidators be and are hereby authorized (when and as soon as the debts and liabilities of the Company have been paid and satisfied or duly provided for) to distribute the assets in specie or kind among the contributories of the Company in accordance with their respective rights and interests. (c) That the Liquidators of the Company be and are hereby authorized to exercise any of the powers given by Section 272(1)(b), (c), (d) and (e), of the Singapore Companies Act, Cap. 50. ORDINARY RESOLUTION: That the Liquidators, Messrs Steven Tan Chee Chuan and Douglas Tan Kay Yeow, be remunerated for the work of winding-up the Company on their normal scale of fees and that the Liquidators, be indemnified by the Company against all costs, charges, losses, expenses and liabilities incurred or sustained by them in execution and discharge of their duties in relation thereto. MASSIMO MOSIELLO Director. Dated this 17 October 2003. LIAN CHEONG: Petition to Wind Up Pending ---------------------------------------- The petition to wind up Lian Cheong Timer Merchant is set for hearing before the High Court of the Republic of Singapore on October 31, 2003 at 10 o'clock in the morning. Chia Han Chow trading as Hua Qin Furniture Construction, a creditor, whose address is situated at 23 Defu Lane 4, Singapore 539421, filed the petition with the court on September 30, 2003. The petitioners' solicitors are Messrs Christopher Yap & Co. of 151 Chin Swee Road, #07-15 Manhattan House, Singapore 169876. Any person who intends to appear on the hearing of the petition must serve on or send by post to Messrs Christopher Yap & Co. a notice in writing not later than twelve o'clock noon of the 30th day of October 2003 (the day before the day appointed for the hearing of the Petition). NEWTON ENGINEERING: Issues Winding Up Order Notice -------------------------------------------------- Newton Engineering & Manufacturing (Pte) Ltd. issued a winding up order notice made on October 10, 2003. Name and address of Liquidator: Official Receiver Singapore of Insolvency & Public Trustee's Office 45 Maxwell Road #05-11/#06- 11 The URA Centre (East Wing) Singapore 069118. RAJAH & TANN Solicitors for the Petitioner, Singapore. Note: (a) All creditors of the Company should file their proof of debt with the Liquidator who will be administering all affairs of the Company. (b) All debts due to the Company should be forwarded to the liquidator. POPULAR HOLDINGS: Creditors Wind Up Inactive Unit ------------------------------------------------- The Board of Directors of Popular Holdings Limited (PHL) announced that a petition for the winding up of an inactive subsidiary, Popular Logistics Pte Ltd (PLog) has been presented by Epilogue Catering Pte Ltd on 17 October 2003, and is scheduled for hearing on 14 November 2003. The Official Receiver will be appointed the liquidator of PLog. PLog is engaged in the business of providing logistics services to external parties, which is not one of PHL's core businesses. PHL will not contest the winding up petition. The winding up of PLog is not expected to have any material impact on the earnings per share and net tangible assets per share of the Group for the financial year ending 30 April 2004. WINEDGE ELECTRONICS: Issues Debt Claim Notice to Creditors ---------------------------------------------------------- Notice is hereby given that the creditors of Winedge Electronics (S) Pte Ltd (In Members' Voluntary Liquidation), which is being wound up voluntarily are required on or before the 17th day of November 2003 to send in their names and addresses and particulars of their debts or claims, and the names and addresses of their solicitors (if any) to the undersigned, the Liquidators of the said Company and, if so required by notice in writing by the said Liquidators are, by their solicitors or personally, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. Dated this 17th day of October 2003. CHEE YOH CHUANG LEOW QUEK SHIONG Liquidators. 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423. =============== T H A I L A N D =============== ASIA HOTEL: Posts Update on Debt Restructuring ---------------------------------------------- Subject : Details of Restructuring Attn : The President, Stock Exchange of Thailand Ref. : ASIA's letter dated 15 October 2003 [subject: Progress Report on Rehabilitation Plan] ASIA's letter dated 30 April 2003 [subject: Progress Report on Rehabilitation Plan] Asia Hotel Public Company Limited would like to post more details on outstanding principals from banks and financial institutions of Company and its subsidiaries as of 30 June 2003: (Million Baht) ASIA 1,626.13 The principal of THB1,461.13 million as of 30 June 2003 was taken in 1999 which creditor agreed to decrease interest rate of accrued interests and extend repayment period ASIA will repay this from operating cash flow Asia Airport Hotel Co., Ltd.(Subsidiary) 662.66 The principal of THB633.36 million as of 30 June 2003 was taken during the debt restructuring in 2000 which creditor agreed to extend repayment period and decrease remaining accrued interests if repaid amount prescribed under debt- restricting agreements. This is a subject of a 2nd debt-restructuring. Zeer Property Co., Ltd.(Subsidiary) 176.53 This is part of the THB151.53 million loan taken in 2000. Asia Pattaya Hotel Co., Ltd.(Subsidiary) 300.00 This was fully paid on 16 January 2003 through a loan from a bank. Total 2,765.32 According to such debt restructuring, Asia realized gain in full amount. Moreover, increasing sales by adjusting marketing plan of Hotel Business and Rental Area Business are the another strategy to recover the negative shareholders' equity. Consequently, ASIA is on process of seeking an independent financial advisor, which shall be after finishing all debt restructuring. This information is provided for notification to the SET and for disclosure to investors. Best regards, Mr. Kumpol Techaruvichit Chairman and Managing Director THAI PETROCHEMICAL: Creditors Offer US$160 Million Credit Line -------------------------------------------------------------- Four creditors have agreed to grant Thai Petrochemical Industry Plc up to US$160 million in loans, a member of the company's rehabilitation committee said Monday. "The US$120-160 million loan agreement is now being drafted and the loan agreement signing session is expected soon," Siri Jirapongphan, a member of the new debt planning team told Business Day in an interview. According to the report, this amount is significantly larger than the loan agreement of US$80 million previously scrapped by creditors. The Finance Ministry, which is leading the company's restructuring efforts, refused to identify the four creditors. Business Day says TPI's major creditors include Bangkok Bank Plc (BBL), Bank of Ayudhya Plc (BAY), City Bank (Bangkok Branch), the US Export and Import Bank, International Finance Corporation (IFC) which is an affiliate firm of the World Bank, and the German development bank, KfW. Mr. Siri clarifies, however, that the loan the company might eventually take may not amount to US$160 million. He said TPI will only take the loan that will offer it the best terms and conditions. The company currently owes creditors US$3.8 billion. ********* 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., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Lyndsey Resnick, Mavy Nineza-Merlin, Ma. 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 ***