/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/031212.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 Friday, December 12, 2003, Vol. 6, No. 246 Headlines A U S T R A L I A MAYNE GROUP: Ends Exclusive Talks with New Clicks Australia NORMANS WINES: Auditor, Two Execs Sued Over 2001 Collapse C H I N A & H O N G K O N G CHINA CONSTRUCTION: Picked for 'Pilot' Govt Rescue Program CHINA-HONG KONG: Posts HK$72 Million First-half Net Loss GOOD IDEA: Faces Winding up Petition in Hong Kong High Court I N D O N E S I A TELEKOMUNIKASI INDONESIA: To Bare Re-audited Books by January TELEKOMUNIKASI INDONESIA: Delisting Rumors Untrue J A P A N ASHIKAGA FINANCIAL: Unveil Changes In FTSE Indices CROSSWAVE COMMUNICATIONS: Enters Deal With NTT Com DAIEI INC.: Completes Sale of Fukuoka Assets MITSUI MINING: IRCJ to Purchase Loans K O R E A HYNIX SEMICONDUCTOR: Minority Shareholders Win Suit LG CARD: Singapore's Temasek Eyes Takeover M A L A Y S I A ANTAH HOLDINGS: Issues Default Status Update BOUSTEAD HOLDINGS: Plans to issue RM350M Bonds KEMAYAN CORPORATION: THSRSB Files Suit Against Firm KSU HOLDINGS: Unveils Payment Default NALURI BERHAD: Answers KLSE Query RHB GROUP: Plans to Cut MYR4.57B Debt by Half TENAGA NASIONAL: Gets OK For Securities Issue TONGKAH HOLDINGS: Court OKs Restructuring Proposal P H I L I P P I N E S BENPRES HOLDINGS: Clarifies Maynilad Bailout Report MUSIC CORPORATION: Wants to Erase Capital Deficiency by 2004 NATIONAL BANK: Targets Php150M Income This Year NATIONAL BANK: Expects to Trim Bad Loans to PhP43B by Yearend NATIONAL STEEL: Indian Firm Ops Offer to Php12.25B PRIMETOWN PROPERTY: Court OKs Rehabilitation S I N G A P O R E ECON INTERNATIONAL: Clarifies Unit Liquidation Report ETAT ENTERPRISE: Releases Winding Up Order Notice FHTK HOLDINGS: Issues Shareholder's Interest Change Notice GOLDENLITE DEVELOPMENT: Petition to Wind Up Pending JOHAN SINGA: Issues Preferential Dividend LEE PTE: Issues Winding Up Order Notice MULTI-CHEM LIMITED: Posts Changes in Shareholder's Interest T H A I L A N D THAI MILITARY: Singaporean Bank Plans to Buy 20-30% Stake TPI POLENE: Sets Public Offering January 12-16 * Large Companies with Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= MAYNE GROUP: Ends Exclusive Talks with New Clicks Australia ----------------------------------------------------------- Disagreements over the value of Mayne Pharmacy Services (MPS) led Mayne Group and New Clicks Australia to cancel exclusive negotiations early this week. According to The West Australian, the loss of a major Glaxo- SmithKline distribution contract was what triggered the divergent valuation of MPS. Before the contract loss, Mayne had valued MPS at AU$380 million. Mayne claims it is still negotiating with more than two other buyers, whose identities it did not reveal. New Clicks Australia, on the other hand, is still keen to do a deal, but a spokesman told The West Australian this would only happen if "it is at a price where there is value in it." "The business is now being targeted aggressively by Australian Pharmaceutical Industries and Sigma," a source close to the deal told The West Australian. "Mayne's competitors are currently in a feeding frenzy trying to lure away banner group members and wholesale distribution customers." The banner groups are the chemist chains supported by MPS and include Chem Mart, Terry White and Healthsense, according to the paper. MPS distributes AU$1.94 billion of goods to these and other chains each year. NORMANS WINES: Auditor, Two Execs Sued Over 2001 Collapse --------------------------------------------------------- The Supreme Court of Western Australia has postponed until February 26 the final pre-trial hearings on the lawsuit filed by Ernst & Young, the liquidator of Normans Wines. The suit, according to The Advertiser, names Deloitte Touche Tohmatsu, a former Normans officer and a former Normans director as defendants. The liquidator seeks AU$20 million in damages for alleged negligence and breach of contract, on the part of Deloitte; and alleged breaches of statutory and fiduciary duties, in the case of the two former executives, identified by the paper as Robert Horlin-Smith and Walter Enriquez. Mr. Smith served the company as secretary and chief financial officer, while Mr. Enriquez occupied a board post. "The liquidator alleges the company should have declared substantial losses -- instead of profits -- in its 1997, 1998 and 1999 financial statements," The Advertiser said. A failed merger with Perth wine company, Xanadu, accelerated the company's collapse in July 2001. Saddled with a AU$60 million debt load, Xanadu brought it out of receivership later that year. It sold several assets, including wineries and vineyards thereafter. Recently, a meeting of Normans' creditors was postponed until November 2004, the paper said. Normans Wines listed in 1994 with a market capitalization of AU$16.5 million and, in its first year, beat its prospectus forecast profit of AU$2.03 million by 1 percent, according to the paper. Ernst & Young represents 1548 unsecured creditors. ============================== C H I N A & H O N G K O N G ============================== CHINA CONSTRUCTION: Picked for 'Pilot' Govt Rescue Program ---------------------------------------------------------- Industrial & Commercial Bank of China and China Construction Bank, two of China's four major state-run commercial banks, will receive a 130 billion yuan (US$15.71 billion) injection from China's treasury, Dow Jones says. The capital infusion is part of a new rescue package for the ailing financial sector, an unnamed banker told the newswire. "I was told the Ministry of Finance has just taken out 130 billion yuan [from the Treasury] to give to two of the four state-owned banks to write off their bad assets." "Our bank [China Construction Bank] is definitely one of them. I was told the other is ICBC," the source added. In addition to this capital boost, China Construction will also be allowed to withhold its profit from the state this year and use the money to reduce its bad-loan portfolio, instead. This arrangement is believed to be in preparation for a public offering in 2005. In 2002, China Construction remitted 25 billion yuan of its profit to the government. Last week, China Banking Regulatory Commission Chairman, Liu Mingkang, said one or two of the country's state-run commercial banks are to take part in a pilot reform program aimed at reducing their bad loans, boosting their capital adequacy, strengthening their management and ultimately listing on a stock exchange. CHINA-HONG KONG: Posts HK$72 Million First-half Net Loss -------------------------------------------------------- After posting a HK$39.3 million net profit for the six months to September last year, China-Hong Kong Photo Products ended the period this year with a huge HK$72.01 million net loss. The company blamed the SARS outbreak earlier this year for the tailspin, which pulled turnover by 26.44% to HK$678.45 million, according to the South China Morning Post. GOOD IDEA: Faces Winding up Petition in Hong Kong High Court ------------------------------------------------------------ The High Court of Hong Kong will hear on February 4, 2004 at 9:30 a.m. the petition seeking the winding up of Good Idea Development Limited. Chan Jim Hung of Room 604, Block 16, Shek Kip Mei Estate, Kowloon, Hong Kong filed the petition on November 28, 2003. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office on the 34th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai Hong Kong. ================= I N D O N E S I A ================= TELEKOMUNIKASI INDONESIA: To Bare Re-audited Books by January ------------------------------------------------------------- The re-audited 2002 financial results of PT Telekomunikasi Indonesia Tbk will be ready by January this year, according to Reuters. The revision of the 2002 books was earlier ordered by U.S. regulators, who spotted certain discrepancies in accounting. The company, which is listed in the U.S., has said the re-audit process could decrease net income after tax for 2002 between 4- 20 percent and shareholders equity by between 3-5 percent. "From the meeting between Telkom and its auditors, it has been agreed that the 2002 financial results must be completed in January 2004," Herwidayatmo, head of Indonesia's capital markets watchdog, told reporters Wednesday. Some analysts say the lingering problems with the company's 2002 financial results have weighed on sentiment over Telkom although its shares have risen by more than 57 percent this year compared to the overall Jakarta index gain of 52 percent. TELEKOMUNIKASI INDONESIA: Delisting Rumors Untrue ------------------------------------------------- There's no truth to speculations that the company will delist from the New York Stock Exchange, PT Telekomunikasi Indonesia Tbk said yesterday. Talks that the telecom giant will cease trading on the U.S. bourse swirled after State Enterprises Minister Laksamana Sukardi said earlier this week that the government would review whether to keep Telkom listed in New York because of high costs and opportunities elsewhere. "Telkom does not have any intention of pursuing a delisting from the NYSE and has not received any instruction from its major shareholder of otherwise to pursue any such option," Reuters quoted a company statement released yesterday. ========= J A P A N ========= ASHIKAGA FINANCIAL: Unveil Changes In FTSE Indices -------------------------------------------------- Following the nationalization of Ashikaga Bank by the Japanese Government and in accordance with FTSE Global Equity Index Series Ground Rules, FTSE announced the following changes: INDEX CHANGE EFFECTIVE FROM START OF TRADING FTSE All-World Ashikaga Financial Group 22 December 2003 Index will be delted from the index FTSE World Index Ashikaga Financial Group 22 December 2003 Ex-Multinationals will be removed from the index as detailed above FTSE Global Style Ashikaga Financial Group will 22 December 2003 Index be removed from the index as detailed above With effect from 1 December 2003, use and redistribution of SEDOLs is subject to a separate license from London Stock Exchange. Please contact the London Stock Exchange for further information on +44 (0) 20 7797 3009 or via email sedol@londonstockexchange.com COUNTRY CONSULTATION - FTSE Group is conducting a worldwide consultation exercise, to gather market users' views on the classification of countries within global indices. Visit www.ftse.com/country to find out more and submit your view. For index related enquiries or further information about FTSE please contact: Client Services in UK: Tel: +44 (0) 20 7448 1810 Client Services in US: Tel: +1 212 825 1328 or +1 415 445 5660 Client Services in Asia Pacific: Tel: +852 2230 5800 or +65 6223 3738 Or, email your enquiries to info@ftse.com or visit the website at www.ftse.com CROSSWAVE COMMUNICATIONS: Enters Deal With NTT Com -------------------------------------------------- Crosswave Communications, Inc. and Crosswave Services Inc. (jointly referred to as Crosswave) announced Tuesday the signing of a definitive agreement on a transfer of Crosswave operations to NTT Communications Corporation (NTT Com). Since concluding a letter of intent on November 11, 2003, Crosswave and NTT Com have been negotiating the details of the agreement, and today both parties agreed to the full terms and conditions covering the transfer of Crosswave business operations. The transaction will be completed on December 15, 2003 subject to the permission of the Tokyo District Court after a creditor's meeting. Since concluding a letter of intent on November 11, 2003, Crosswave and NTT Com have been negotiating the details of the agreement, and on Tuesday both parties agreed to the full terms and conditions covering the transfer of Crosswave business operations. The transaction will be completed on December 15, 2003 subject to the permission of the Tokyo District Court after a creditor's meeting. DAIEI INC.: Completes Sale of Fukuoka Assets -------------------------------------------- Daiei Inc. will sell a leisure complex and baseball stadium in Fukuoka to U.S. investment firm Colony Capital, Namnews reports. Colony Capital is to acquire the assets in return for taking on 79 billion yen (US$727 million) of Daiei's debt. The retailer decided to sell the Fukuoka business as part of efforts to reduce its huge overall debt. However, it will retain ownership of the Daiei Hawks baseball team, based at the Fukuoka stadium. MITSUI MINING: IRCJ to Purchase Loans ------------------------------------- The Industrial Revitalization Corporation of Japan (IRCJ) has decided to purchase outstanding loans to struggling Mitsui Mining Co. from creditor banks, Kyodo News reported on Thursday. This means completion of negotiations over debt purchases concerning all eight troubled firms to be bailed out by the governmental corporate revival body. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Minority Shareholders Win Suit --------------------------------------------------- Minority shareholders of Hynix Semiconductor Manufacturing Inc. won a lawsuit against Hyundai Securities and its former Chairman Lee Ik-chi at the Seoul Appellate Court, according to the Korea Times. With the court's ruling in favor of the plaintiffs, the 52 individual investors will receive a total of 350 million won in compensation from damage claims concerning the alleged stock price manipulation by Lee in 1998. The investors suffered heavy losses after buying Hynix shares before regulators looked into the Hyundai Group's dubious stock trading in 1999. The People's Solidarity for Participatory Democracy (PSPD) played a crucial role in helping the minority shareholders win the legal battle. LG CARD: Singapore's Temasek Eyes Takeover ------------------------------------------ Singapore's Temasek Holdings Ltd. will join the race to acquire struggling LG Card Co., according to Dow Jones on Thursday. Among other foreign investors, Newbridge Capital Ltd. has expressed its intent to take over LG Card, an official at the Financial Supervisory Commission said earlier. HSBC Holdings Plc (HBC), Citibank and GE Capital were also reported by local media as being interested in the largest credit card firm in South Korea. =============== M A L A Y S I A =============== ANTAH HOLDINGS: Issues Default Status Update -------------------------------------------- The Board of Directors of Antah Holdings Berhad (Antah) announced that the updates on Antah's involvement in litigation as announced previously on 13 November 2003 are as follows: 1. Financial Institutions The hearing dates and status in respect of the claims made by the following financial institutions have been fixed as follows- Claimant Suit No. Hearing Date/Status RHB Sakura Merchant Bankers Bhd MT4-22-921-2002 16 March 2004 Aseambankers Malaysia Bhd D3-22-152-2003 6 January 2004 Bank of Tokyo-Mitsubishi (Malaysia) Bhd D4-22-1940-2002 Extension of Time to file Notice of Appeal allowed Mizuho Corporate Bank Ltd D1-22-280-2003 11 February 2004 Ambank Berhad S1-22-836-2002 5 January 2004 RHB Bank Berhad D4-22-1401-03 29 December 2004 There are no material developments to the other claims by financial institutions against Antah. 2. Non-Financial Institutions The hearing dates in respect of the claims made by the following non-financial institutions have been fixed as follows- Claimant Suit No Hearing Date Haw Ah Bee Construction Sdn Bhd S3-22-1334-2002 Pending full settlement Southern Investment Bank Berhad S8-52-16056-03 26 January 2004 There are no material developments to the other claims by non- financial institutions against Antah. 3. Corporate Guarantee There are no material developments to the other claims against companies where Antah has provided a corporate guarantee. BOUSTEAD HOLDINGS: Plans to issue RM350M Bonds ---------------------------------------------- Boustead Holdings Bhd plans to issue up to 350 million ringgit worth of bonds to enable it to refinance its existing loans, the Star reports. The Company is planning a bank guaranteed serial bonds issue of up to 250 million ringgit in nominal value and bank guaranteed redeemable convertible bonds of up to RM100mil in nominal value. The bond issues will be completed by the second quarter of the financial year to December 2004. KEMAYAN CORPORATION: THSRSB Files Suit Against Firm --------------------------------------------------- The Board of Directors of Kemayan Corporation Berhad (KCB) informed the Kuala Lumpur Stock Exchange that the Company had on 8th December 2003 received a Writ of Summons from Teo Hang Sam Realty Sdn Bhd (THSRSB) for the following claims against KCB in respect of the rental of Suite 802, Tingkat 8 (Suite 802) and Suite 2104-2106 (Suite 2104-2106) including corridor (the Corridor), Tingkat 21, Plaza See Hoy Chan, Jalan Raja Chulan, 50200 Kuala Lumpur [the said premises]: 1. The total sum of RM3,933,950.29 as at 18 August 2003; 2. Interest at the rate of 10 percent per annum on the total outstanding rental of RM3,933,950.29 from 18 August 2003 until the date of full payment; 3. Double rental rate charged amounting to RM12,316.80 from 1 September 2003 until the date of handing over of vacant possession of Suite 802; 4. Double rental rate charged amounting to RM49,593.60 from 1 September 2003 until the date of handing over of vacant possession of Suite 2104-2106; 5. Double rental rate charged amounting to RM4,435.20 from 1 September 2003 until the date of handing over of vacant possession of the Corridor; 6. Special damages to be imposed on the cost incurred for reinstate the condition of the said premises together with other charges until the date of vacant possession of the said premises; 7. An order of vacant possession of the said premises will be served on plaintiff immediately; 8. Cost; and 9. Such other relief as the Honourable Court may deem fit and proper. The claim is in respect of the Tenancy Agreements dated 8 September 1997 and 30 May 1997 entered into between THSRSB and KCB in which THSRSB alleged that KCB has defaulted the total payment of RM3,933,950.29 as at 18 August 2003. The rental dispute between KCB and THSRSB under Originating Summon No. S8-(S4)-24-1905-1999 is currently under arbitration. KCB is seeking solicitor's advice to strike out this Writ of Summons. Since this case is under arbitration, the Court has not adjudicated the claim; therefore, there is no immediate loss as at this stage except for legal fee to be incurred in defending the claim. KSU HOLDINGS: Unveils Payment Default ------------------------------------- As required by the Kuala Lumpur Stock Exchange (KLSE) Practice Note 1/2001, KSU Holdings Berhad wish to provide an update on the details of all the facilities currently in default, as enclosed in Appendix A. The default as at 30 November 2003 amounted to RM106,452,694.87 of principal sum and RM29,858,476.09 of interest for term/bridging loans and overdraft facilities. There is no other new development since our previous announcement with regards to this Practice Note. APPENDIX A DEFAULT AS AT 30 NOVEMBER 2003 MAY PLASTICS INDUSTRIES BERHAD BANK FACILITY PRINCIPAL INTEREST DEFAULT DEFAULT 1. MIMB/MIDF Term Loan RM28,528,191.15 RM3,245,693.03 MAY PACKAGING INDUSTRIES SDN BHD BANK FACILITY PRINCIPAL INTEREST DEFAULT DEFAULT 1. EON BANK BHD Term Loan RM3,431,775.00 RM1,888,065.78 KUMPULAN SEPANG UTAMA SDN BHD BANK FACILITY PRINCIPAL INTEREST DEFAULT DEFAULT 1. EON BANK BHD Overdraft RM1,500,000.00 RM198,779.91 2. MBSB Term Loan RM30,741,498.72 RM10,662,911.43 3. MBSB Bridging Loan I RM22,178,261.55 RM7,239,209.72 4. MBSB Bridging Loan II RM20,072,968.45 RM6,623,816.22 TOTAL RM74,492,728.72 24,724,717.28 GROUP TOTAL RM106,452,694.87 RM29,858,476.09 NALURI BERHAD: Answers KLSE Query --------------------------------- Naluri Berhad refers to the letter dated 9 December 2003 from the Kuala Lumpur Stock Exchange (KLSE) regarding the article, which appeared in the Nanyang Siang Pau on 9 December 2003. On behalf of the Special Administrators (SAs) of Naluri, Aseambankers Malaysia Berhad clarified that the SAs are currently formulating a composite scheme to address the current inadequate level of operations of Naluri pursuant to Practice Note 10/2001 of the KLSE Listing Requirements. Pursuant thereof, the SAs are exploring a scheme which encompasses a proposed capital repayment to the shareholders of Naluri, and the proposed acquisitions of certain assets and companies. However, the terms of the acquisitions have not been finalized at this juncture and no definitive agreements have been executed todate. As and when the definitive agreements are executed, the Company will make an appropriate announcement to the KLSE in due course. This announcement is dated 10 December 2003. Query Letter content: The Company refers to the above article appearing in Nanyang Siang Pau, Nanyang Business Section, page C3 on Tuesday, 9 December 2003, a copy of which is enclosed for your reference. In particular, we would like to draw your attention to the underlined sentences, which state that Naluri Berhad will acquire a Company involving in auto parts manufacturing for RM100 million. In accordance with the Exchange's Corporate Disclosure Policy, you are requested to furnish the Exchange with an announcement for public release confirming or denying the above reported article and in particular the underlined sentences after due and diligent enquiry with all the directors, major shareholders and all such other persons reasonably familiar with the matters about which the disclosure is to be made in this respect. In the event you deny the above sentences or any other part of the above reported article, you are required to set forth facts sufficient to clarify any misleading aspects of the same. In the event you confirm the above sentences or any other part of the above reported article, you are required to set forth facts sufficient to support the same. Please furnish the Exchange with your reply within one (1) market day from the date hereof. Yours faithfully LISA LAM Sector Head, Issues & Listing KLL/CY c.c. Securities Commission (via fax) RHB GROUP: Plans to Cut MYR4.57B Debt by Half --------------------------------------------- RHB Group plans to cut its 4.57 billion-ringgit debt by about half and will announce details of the restructuring plan within nine months, according to Dow Jones, citing RHB Group's Executive Chairman Sulaiman Abdul Rahman Taib. Sulaiman said the group's debts includes 2 billion ringgit at holding Company Rashid Hussain Bhd. (1309.KU), 1 billion ringgit at RHB Capital, 1.4 billion ringgit at RHB Bank and MYR165 million at RHB Sakura Merchant Bankers Bhd. (6882.KU). RHB has also received queries from local and foreign investors who are interested in acquiring its Vision City commercial property project in Kuala Lumpur, Sulaiman added. He decline to provide further details. The RHB group is controlled by Cahya Mata Sarawak Berhad, which is the investment arm of eastern Sarawak state. TENAGA NASIONAL: Gets OK For Securities Issue --------------------------------------------- The Malaysian Securities Commission has given its approval for Tenaga Nasional's proposed issuance of 200-million ringgit in five-year unsecured convertible redeemable income securities. Tenaga must meet routine conditions for the issue, such as providing a prospectus for investors. TONGKAH HOLDINGS: Court OKs Restructuring Proposal -------------------------------------------------- Public Merchant Bank Berhad (PMBB), on behalf of the Board of Tongkah Holdings Berhad (THB), had on 13 November 2003, made an application to the Kuala Lumpur Stock Exchange (Exchange) to shorten the notice period for the books closure date in respect of the share exchange from 12 market days pursuant to paragraph 9.19(1) of the Listing Requirements to 5 clear market days (Application). Pursuant thereto, PMBB, on behalf of the Board of THB, is pleased to announce that the Exchange had via its letter dated 9 December 2003, granted its approval for the said Application. ===================== P H I L I P P I N E S ===================== BENPRES HOLDINGS: Clarifies Maynilad Bailout Report --------------------------------------------------- This is in reference to the news article entitled "MWSS poised to get 30 percent of Maynilad in Gov't bailout" published in the December 10, 2003 issue of the Manila Standard. The article reported "The government and the Lopez group of the companies have begun discussions on the possibility of a bailout for Maynilad Water Services Inc. which can be concluded by the end of the year, Malacanang sources said on Wednesday. The talk's center on government buying 30 percent of the ailing Maynilad for $20 million through a debt swap agreement with the Metropolitan Waterworks and Sewerage System (MWSS). Sources said the French Partner of the Lopez group in Maynilad, the Ondeo Group wants to pull out of the Philippines because of losses being incurred by the water firm." Benpres Holdings Corporation (BPC), in its letter dated December 10, 2003. "Please be advised that MWSS and the majorityu stockholders of Maynilad, Benpres and Ondeo, have commenced good faith discussions for the possible settlement of pending controversies between MWSS and Maynilad. The discussion, while very preliminary, is comprehensive and considers all possible options including the idea of a debt-equity swap. Any agreement becomes final only when all appropriate approvals from the government are obtained." For a copy of the press release, go to http://www.pse.org.ph/html/disclosure/pdf/dc2003_3936_BPC.pdf MUSIC CORPORATION: Wants to Erase Capital Deficiency by 2004 ------------------------------------------------------------ Music Corporation is confident it can wipe out its capital deficiency by next year through better profits from its semiconductor business and by selling additional shares, reports the Business World. The Company has already trimmed its capital deficiency to 102 million pesos as of end-September. By end- 2003, the Company is confident this will be further reduced to 72 million pesos. This is in comparison to the 344 million pesos in capital deficiency as of December 2002. For the first nine months, Music said its net profit amounted to 29.79 million pesos and its operating profits at 69.98 million pesos. The bankruptcy expenses incurred by US unit Music Semiconductors, Inc., which amounted to PhP23 million in the second quarter and PhP16 million in the third quarter, affected its income. NATIONAL BANK: Targets Php150M Income This Year ----------------------------------------------- Philippine National Bank (PNB) is targeting a net profit of 150 million pesos this year, BPI Securities reports. The bank incurred a net profit of 6 million in October and 133 million in the 10 months to October, BPI Securities reports. PNB managed to sustained its recovery in the first nine months of the year on the back of improved net interest margins, higher fee-based gains and a reduction in operating expenses. The bank has also disposed of some of its idle assets to raise revenue. The planned notes issue of up to US$140 million, to raise tier 2 capitals, has been deferred until the first quarter of 2004. NATIONAL BANK: Expects to Trim Bad Loans to PhP43B by Yearend ------------------------------------------------------------- Philippine National Bank (PNB) aims to cut its bad loans by as much as 5 billion pesos in the last quarter to just 43 billion pesos, according to Business World, citing PNB President Lorenzo B. Tan. PNB's satisfactory performance for the second year of its five-year rehabilitation plan was traced to the 1.3-billion pesos increase in the level of its current account and savings account (CASA) in October. Its total deposits as of October 31 reached 150 billion pesos, 13 billion pesos higher than the December 2002 level of 137 billion pesos. NATIONAL STEEL: Indian Firm Ops Offer to Php12.25B -------------------------------------------------- Indian firm Global Infrastructure Holdings Ltd. Inc. (GIHLI) has raised its original purchase price to 12.250 billion from 11.905 billion for the National Steel Corporation (NSC) and agreed to pay 1 billion pesos up front, instead of its original offer of 655 million pesos, the Philippine Star reported on Thursday, citing major creditor the Land Bank of the Philippines. Teves said NSC's creditors were now discussing GIHLI's offer sheet individually before coming together to arrive at a final decision. PRIMETOWN PROPERTY: Court OKs Rehabilitation -------------------------------------------- The Makati Regional Trial Court (RTC) has placed Primetown Property Group Inc. under rehabilitation receivership, the Company said in a disclosure to securities regulators on Wednesday. In an order, the Makati RTC has referred Primetown's rehabilitation plan to Jose Absalom Jocom Jr., the firm's duly appointed receiver, for study, evaluation and recommendation within 90 days from receipt of order. Primetown has interests in a 22.6-hectare property in Mactan, Cebu and 23 hectares of property in Boracay Island, which it is ready to cede to the creditors to liquidate the loan. Records showed Primetown's debts to financial institutions totaled 549.9 million pesos, while liabilities totaled 942.2 million pesos. It also has assets totaling 695 million pesos, consisting of 407.2 million pesos in real estate projects, 223.3 million pesos in receivables, 42 million pesos in investments, 19.7 million pesos in other assets, and 1.7 million pesos in cash. ================= S I N G A P O R E ================= ECON INTERNATIONAL: Clarifies Unit Liquidation Report ----------------------------------------------------- Econ International Limited (EIL) refers to the articles in the Business Times and the Straits Times dated 3 December 2003 and 5 December 2003 respectively, commenting on the liquidation of its subsidiary, Econ Corporation Limited (ECL). It was necessary for ECL to propose a Scheme of Arrangement to its creditors in May 2003 (the ECL Scheme), given its then financial position and outlook. The hope and expectation was that with the ECL Scheme in place, ECL's debts could be compromised/restructured, and at the same time ECL be allowed to continue to tender for projects. In this way, the continued survival of ECL as an on-going concern could be facilitated. The objective, if achieved, would also result in better recovery for ECL's creditors. With the ECL Scheme in place, the scheme that EIL intended to propose to its creditors (the intended EIL Scheme) would also be facilitated. The ECL Scheme that was proposed to creditors was one that management felt was realistically achievable. Under the ECL Scheme, ECL's creditors would ultimately become the majority shareholders in EIL. The ECL Scheme was voted on and approved by the requisite majorities of creditors, at the creditors' meeting held on 17 June 2003. The creditors' meeting was held in accordance with the Order of Court dated 7 May 2003, under which the creditors' meeting had to be held by 18 June 2003. ECL's efforts to obtain the Court sanction for the ECL Scheme (which was approved by the requisite majorities of creditors) met with opposition from certain creditors (Opposing Creditors). The delay in obtaining the Court's sanction, as a result of protracted legal proceedings due to opposition from the Opposing Creditors, created more uncertainty and made on-going operations more difficult as ECL's financial status continued to be in doubt. A series of contract terminations then took place. These changes and the continued worsening of the operating environment for ECL in the weeks and months after May 2003 (exacerbated by the delay in obtaining the sanction of the Scheme) resulted in ECL operating under very extreme circumstances. There was a loss in confidence from customers, suppliers, sub-contractors and banks, which are vital to the on-going operations of ECL. Nevertheless, if the sanction of the Court for the ECL Scheme were to be granted, the management of ECL believed that the Scheme could still be carried out. On 24 November 2003, the High Court ruled that it would not sanction the ECL Scheme. By this time, the circumstances facing ECL were very different from those at the outset when the ECL Scheme was proposed. With the Scheme dismissed, ECL's operations could not have continued whilst ECL was insolvent. Options such as appointing interim judicial managers would, in ECL's management's opinion, not be useful now since the operating circumstances have deteriorated and are likely to be aggravated even further after the Court's unfavourable ruling even if the ruling were to be appealed. Any possible appeal against the decision would have to be weighed against the reality of the circumstances facing ECL, the continued uncertainty of ECL's position, the loss of creditor confidence and the lack of legal immunity from lawsuits during the period while the appeal was waiting to be heard. Further losses of S$28m were also incurred by ECL for the first-half of the financial year ended 30 September 2003 (which were included in EIL's announcement on 28 November 2003 of the Group's unaudited results for the same period); and ECL was also debarred from tendering for government jobs for a period of five years (which was intended to be appealed against, if the ECL Scheme was approved, as per the announcement on 4 November 2003). Having considered the circumstances in their totality, the consequences (and the viability) of the various possible courses of action and taking into account the relevant advice obtained, it was with deep regret that ECL was put into liquidation by ECL's management. On 26 November 2003, ECL commenced the creditors' voluntary liquidation, and provisional liquidators were appointed, which was announced by EIL on 28 November 2003. On 27 November 2003, the Opposing Creditors petitioned to place ECL under interim judicial management (the Petition). The Petition was heard in the High Court on 3 December 2003. The High Court ordered that all proceedings in the Petition filed by the Opposing Creditors be stayed for the reason that leave of Court was not obtained before the Petition was filed as required by Section 299(2) of the Companies Act, Cap 50. Unless the stay order is lifted by another order of court, the Opposing Creditors cannot proceed further with their Petition. The Opposing Creditors have filed an application for the stay order to be lifted and this application is fixed for hearing in the High Court on 15 December 2003. ETAT ENTERPRISE: Releases Winding Up Order Notice ------------------------------------------------- Etat Enterprise Pte Ltd issued a winding up order notice made the 28th day of November 2003. Name and address of Liquidator: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #05-11/#06-11 Singapore 069118. Dated the 28th day of November 2003. Messrs LEE BON LEONG & CO. Solicitors for the Petitioner. FHTK HOLDINGS: Issues Shareholder's Interest Change Notice ---------------------------------------------------------- FHTK Holdings Limited issued a notice of changes in substantial shareholder Citibank N.A. (Singapore)'s interest: Date of notice to Company: 05 Dec 2003 Date of change of shareholding: 04 Dec 2003 Name of registered holder: Citibank Nominees Singapore Pte Ltd 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: 4,405,000 % of issued share capital: 0.358 Amount of consideration (excluding brokerage and stamp duties) per share paid or received: S$0.095 No. of shares held before the transaction: 29,001,320 % of issued share capital: 2.356 No. of shares held after the transaction: 24,596,320 % of issued share capital: 1.998 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before the transaction: 0 97,322,000 % of issued share capital: 0 7.907 No. of shares held after the transaction: 0 92,917,000 % of issued share capital: 0 7.549 Total shares: 0 92,917,000 No. of Warrants Nil No. of Options Nil No. of Rights Nil No. of Indirect Interest Nil GOLDENLITE DEVELOPMENT: Petition to Wind Up Pending --------------------------------------------------- The petition to wind up Goldenlite Development Pte Ltd. is set for hearing before the High Court of the Republic of Singapore on January 9, 2004 at 10 o'clock in the morning. The Bank of China, a creditor, whose address is situated at 4 Battery Road, Bank of China Building, Singapore 049908, filed the petition with the court on November 28, 2003. The Petitioner's solicitors are Messrs Rajah & Tann of 4 Battery Road, #15-01 Bank of China Building, Singapore 049908. Any person who intends to appear on the hearing of the petition must serve on or send by post to Messrs Rajah & Tann a notice in writing not later than twelve o'clock noon of the 8th day of January 2004 (the day before the day appointed for the hearing of the Petition). JOHAN SINGA: Issues Preferential Dividend ----------------------------------------- Johan Singa Holdings Pte Limited issued a notice of intended preferential dividend as follows: Address of Registered Office: Formerly of 150 Orchard Road, #07- 17/18 Orchard Plaza, Singapore 238841. Court: Supreme Court, Singapore. Number of Matter: Companies Winding Up No. 303 of 1986. Last Day for Receiving Proofs: 19th day of December 2003. Name & Address of Liquidator: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118. Dated: 5th day of December 2003. KAREN LOH Assistant Official Receiver. LEE PTE: Issues Winding Up Order Notice --------------------------------------- Lee Pte Limited issued a notice of winding up order notice made on the 28th day of November 2003. Name and address of Liquidators: The Official Receiver 45 Maxwell Road #06-11 The URA Centre (East Wing) Singapore 069118. Dated the 1st day of December 2003. Messrs RAJAH & TANN Solicitors for the Petitioner. MULTI-CHEM LIMITED: Posts Changes in Shareholder's Interest ----------------------------------------------------------- Multi-Chem Limited issued a notice of changes in Director Foo Suan Sai's interest: Name of director: Foo Suan Sai (also a substantial shareholder) Date of notice to Company: 05 Dec 2003 Date of change of interest: 05 Dec 2003 Name of registered holder: Foo Suan Sai Circumstance(s) giving rise to the interest: Others Please specify details: Warrants Information relating to shares held in the name of the registered holder: No. of warrants which are the subject of the transaction: 100,000 % of issued share capital: Amount of consideration (excluding brokerage and stamp duties) per share paid or received: 0.145 No. of warrants held before the transaction: 14,315,000 % of issued share capital: No. of warrants held after the transaction: 14,415,000 % of issued share capital: Holdings of Director including direct and deemed interest Deemed Direct No. of warrants held before the transaction: 11,481,000 14,315,000 % of issued share capital: No. of warrants held after the transaction: 11,481,000 14,415,000 % of issued share capital: Total shares: 11,481,000 14,415,000 No. of Warrants No. of Options No. of Rights No. of Indirect Interest =============== T H A I L A N D =============== THAI MILITARY: Singaporean Bank Plans to Buy 20-30% Stake --------------------------------------------------------- Singapore's DBS Bank is reportedly among a number of local and foreign banks eyeing a stake in Thai Military Bank, according to Dow Jones. An unnamed director of the bank told the newswire the Singaporean bank wants a 20-30% stake in the local bank in line with its plan to increase its presence in Thailand's consumer and small- and medium-sized business segments. TPI POLENE: Sets Public Offering January 12-16 ---------------------------------------------- Anticipating the return of bullish trades by mid-January, troubled cement manufacturer, TPI Polene Plc, is scheduling its long-delayed public offering on January 12-16. "We are confident the market sentiment will regain bullishness in that period," Wanchai Manosuthi, president of Tisco Securities, told Bangkok Post. Tisco is acting as the financial adviser and lead underwriter of the transaction. He said the company's shares were of interest to investors as it had strong fundamentals and its cement business had good growth potential in line with the robust economy. The company earned a net profit of THB3.8 billion in the first nine months of this year and projects profits of THB5 billion for the year. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Shareholders Total Equity Assets Company Ticker ($MM) ($MM) ------- ------ ------------ ------- CHINA & HONG KONG ----------------- Guangdong Sunrise Holdings Co., Ltd. 000030 (184.24) 23.04 Jinan Qingoi Motorcyle Co., Ltd. 600698 (193.08) 113.96 Shenzhen China Bicycles Co., Ltd. 000017 (239.91) 60.39 Shenzhen Great Ocean Shipping Co., Ltd. 200057 (10.87) 11.27 Shenzhen Petrochemical Industry Group Co., Ltd. 000013 (243.36) 89.48 INDONESIA --------- PT Lippo Securities Tbk LPPS (3.62) 14.26 Smart Tbk SMAR (37.38) 398.89 MALAYSIA -------- CSM Corporation Bhd CSMB (8.40) 41.55 Faber Group Bhd FBMS (7.16) 504.98 Kemayan Corp Bhd KOPS (289.67) 114.38 Panglobal Bhd PGL0 (41.07) 187.79 Promet Bhd PMPT (174.45) 50.49 Saship Holdings SASH (168.68) 136.30 Sri Hartamas Bhd SRIH (118.91) 99.76 Tongkah Holdings Bhd TKHS (78.01) 112.62 Uniphoenix Corporation Bhd UNI (145.25) 33.34 PHILIPPINES ----------- Pilipino Telephone Co PNOTF (356.17) 122.97 SINGAPORE --------- Pacific Century Regional Developments Ltd PCEN (931.65) 7369.85 THAILAND -------- Datamat PCL DTM (9.53) 13.16 National Fertilizer PCL NFC (30.82) 297.40 Siam Agro-Industry Pineapple And Others PCL SAIC (13.88) 14.02 Thai Nam Plastic PCL TNPC (2.00) 24.33 Tuntex (Thailand) PCL TUN (26.82) 381.43 Each Friday edition of the Troubled Company Reporter - Asia Pacific contains a list of companies with insolvent balance sheets based on the latest publicly available balance sheet available to our editors at the time of publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* 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 ***