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/raid1/www/Hosts/bankrupt/TCRAP_Public/040105.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, January 5, 2004, Vol. 7, No. 2 Headlines A U S T R A L I A AMP LIMITED: Execs Snap up HHG Shares to Show Support for Split NYLEX LIMITED: Streamlining to Yield AU$750M Annual Revenues PARMALAT AUSTRALIA: Assures Local Suppliers of Normal Operations C H I N A & H O N G K O N G HONG TONG: Cuts Six-month Net Loss to HK$7.69 Million KEL HOLDINGS: Six-month Loss Balloons to HK$3.15 Million QUEEN ESSENCE: Winding up Hearing Set January 28 SAMVICKA LIMITED: Faces Winding up Petition Before HK High Court VANDA SYSTEM: Blames SARS Outbreak for Tripled Net Loss Increase I N D O N E S I A ASIA PULP: IBRA Banks on Credit Assets to Reach Collection Goals GARUDA INDONESIA: Pays Creditors US$66.9M in December J A P A N NISSHO IWAI: Wins Power Generation Project in Vietnam NISSAN MOTOR: Recalls 276,000 Sentras TOSHIBA CORPORATION: Launches 512-megabit XDR DRAM K O R E A HANARO TELECOM: Issues Interest Rate Swap Notice LG CARD: Creditors Lukewarm on Co-management LG CARD: Korean Bank Consortium to Manage Ailing Firm M A L A Y S I A BESCORP INDUSTRIES: Issues Default Payment Update EPE POWER: Applies for Capital Reduction Scheme INNOVEST BERHAD: KLSE OKs Rescue Scheme Proposal KELANAMAS INDUSTRIES: Enters Alliance With MPTR NCK CORPORATION: Issues Default in Debt Payments NCK CORPORATION: Releases Regularization Plan Update PILECON ENGINEERING: Issues Default Status SASHIP HOLDINGS: Administrators Prepare Workout Proposal SASHIP HOLDINGS: Submits Regularization Plan to SC WOO HING: Extends Investigative Audit to February 29 P H I L I P P I N E S NEXSTAGE INC.: SEC OKs Capital Reduction Plan S I N G A P O R E GOLDEN AGRI-RESOURCES: Issues Debt Rescheduling Update I.R.E. CORPORATION: Issues Profit Warning I.R.E. CORPORATION: Unveils Debt & Equity Restructuring Scheme NEPTUNE ORIENT: Appoints New Director SEATOWN CORPORATION: Submits Financial Result on January 31 WEE POH: Financial Controller Resigns From Post T H A I L A N D BANGKOK BANK: To Resume Trading on Local Bourse January 6 JASMINE INTERNATIONAL: JIOC Capital Restructuring Approved MANAGER MEDIA: Trading Remains Suspended Due to REHABCO Status PLASTIC PRECISION: Issues Affiliate's Restructuring Agreement PRASIT PATANA: May be Delisted for Failure to Set up Audit Team - - - - - - - - ================= A U S T R A L I A ================= AMP LIMITED: Execs Snap up HHG Shares to Show Support for Split --------------------------------------------------------------- Investors continued to snatch shares of HHG from the market last week, encouraged by news that directors of AMP Limited, its Australian parent, have raised their stakes in the demerged unit, The Advertiser said. According to the report, AMP CEO Andrew Mohl has spent AU$200,000 buying HHG shares since listing on the Australian market on December 23. He had reportedly bought 220,000 shares at 91c each in an acquisition spree described by a spokeswoman as "a vote of confidence" in HHG. HHG directors have also trooped to the market, buying hundreds of thousands of shares on the London Stock Exchange. They include new HHG CEO Roger Yates, who bought 250,000 shares at 37p (91c), spending a total of AU$227,500 on December 23. HHG Chairman Malcolm Bates also bought 100,000 shares at 37p apiece while fellow directors Peter Costain and Sir William Wells also snapped up 100,000 shares at the same price, The Advertiser said. Listed at 88c barely two weeks ago, the shares closed 7.6% higher at 99c Thursday last week. This represents a bonus for institutional investors, who had paid 72c for their shares. The gains also represent an additional windfall for directors, who prior to the demerger were collectively paid AU$38 million in so-called retention bonuses. Mr. Mohl had defended the use of the bonuses when they emerged in October, saying the loss of key executives could have derailed the demerger of AMP and its British operations, the report said. The retention package includes a AU$2.25 million one-off payment to Mr. Mohl and AU$2.75 million for Mr. Yates. Mr. Mohl's share purchases take his total holding in HHG to 478,799 shares, worth AU$474,011 at Thursday's closing price, according to the report. Mr. Yates' purchases take his holdings in HHG to 400,692 shares. NYLEX LIMITED: Streamlining to Yield AU$750M Annual Revenues ------------------------------------------------------------- The directors of Nylex Limited, formerly Austrim Nylex, announced last week another major step in the company's successful restructuring program, with divestments of non-core operations and properties totaling US$96.1 million including: (a) Its Pryda and Reid building products businesses in Australia, New Zealand and Asia to the Illinois Tool Works Inc. group for AU$79.5 million. (b) The Henderson's USA and Australian Lumber operations to the Teleflex Inc. group for AU$11.2 million. (c) AU$5.5 million worth of properties surplus to businesses that have previously been sold. The move takes the number of non-core businesses divested since June 2003 to 13, in the process returning to Nylex Ltd. gross proceeds of AU$151.7 million and surpassing the group's previously stated expectation that it would reduce debt by AU$80 million through asset sales by the end of 2003. Nylex's Managing Director and Chief Executive, Glen Casey, said: "We are confident that we are well on the way to reducing our debt levels to around AU$130 million, following the expected completion of our asset divestment program in the first part of the New Year. With the most recent divestments, as well as the successful completion of a AU$100 million capital raising program last month, Nylex is now in the best financial position it has been in for several years. "The Pryda Reid sale will place us in a very strong position to finalize early in the New Year currently advanced negotiations with a new banking group to restructure the group's funding arrangements. This will then complete the transformation of the group's financial structure and consolidate a platform for growth in our core divisions," he added. Mr. Casey concluded, "going forward we well have a core of four divisions -- Automotive, AH Plant, Nylex Consumer and Nylex Industrial Products. Together these are expected to generate annual revenues of more than AU$750 million. As most of the group is performing better than last year, we are confident of reporting improved results for the full year." For more inquiries, contact Glen Casey by Phone: (0419) 329 608 or Tim Allerton by Phone: (0412) 715 707. PARMALAT AUSTRALIA: Assures Local Suppliers of Normal Operations ---------------------------------------------------------------- Queensland dairy farmers are confident it will still be business as usual in Australia despite the woes of Parmalat Finanziaria S.p.A., which owns local brand Pauls Ltd., The Advertiser said last week. Parmalat Australia Managing Director David Lord recently wrote dairy farmers, assuring them its Italian parent's troubles won't affect the company's ability to pay local suppliers. Headquartered in Brisbane, Parmalat is one of Queensland's two major milk processors and employs 800 people in Australia, the paper said. Queensland dairy farmer Pat Rowley, chairman of the 430-strong farmer bargaining group Premium Milk Ltd, told The Advertiser dairy farmers had negotiated supply contracts to 2007 and a price contract to the end of 2004 with Parmalat. "We got our cheque last month and we will next month. We are not dependent on the parent body," The Advertiser quoted him as saying. If Parmalat do collapse, he is confident National Foods will pick up the pieces. National Foods, along with eight others, is among those who have expressed interest in taking over the local Parmalat should the turmoil at the Italian parent spill over to local operations. There are reports that some farmers in Italy and Brazil have not been paid for their milk, The Advertiser said. ============================== C H I N A & H O N G K O N G ============================== HONG TONG: Cuts Six-month Net Loss to HK$7.69 Million ----------------------------------------------------- Hong Tong Holdings reported a narrowed net loss of HK$7.69 million for the six months ended September 30, according to The Standard. Last year, net loss reached HK$10.59 million. Loss per share fell to 3.4 HK cents year-on-year. KEL HOLDINGS: Six-month Loss Balloons to HK$3.15 Million -------------------------------------------------------- KEL Holdings reported a net loss of HK$3.15 million for the six months ended September 30, compared with a net loss of HK$2.79 million a year ago, The Standard said on December 30. Loss per share was 0.23 cent. QUEEN ESSENCE: Winding up Hearing Set January 28 ------------------------------------------------ The High Court of Hong Kong will hear on January 28, 2004 at 9:30 a.m. the petition seeking the winding up of Queen Essence Limited. Man Kwan Lai Edward of Flat F, 27/F., Block 4, Glorious Garden, Lung Mun Road, Tuen Mun, New Territories, Hong Kong filed the petition on November 24, 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. SAMVICKA LIMITED: Faces Winding up Petition Before HK High Court ---------------------------------------------------------------- The High Court of Hong Kong will hear on January 14, 2004 at 9:30 a.m. the petition seeking the winding up of Samvicka Limited. Tse Kwan Por of No. 30 Tong Kung Leng, Sheung Shui, New Territories, Hong Kong filed the petition on November 17, 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, who holds office on the 34th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai Hong Kong. VANDA SYSTEM: Blames SARS Outbreak for Tripled Net Loss Increase ---------------------------------------------------------------- Information technology solutions company, Vanda System & Communications Holdings, said net loss widened to HK$55.58 million for the six months ended September 30, from a net loss of HK$17.26 million a year earlier, The Standard said. It blamed the SARS outbreak and a general slowdown. Group consolidated turnover fell 11.8% to HK$420.99 million. ================= I N D O N E S I A ================= ASIA PULP: IBRA Banks on Credit Assets to Reach Collection Goals ---------------------------------------------------------------- The Indonesian Bank Restructuring Agency, which is due to be disbanded on February 27, is bent on selling the debts owed to it by Asia Pulp and Paper to meet its collection target for 2003. Quoting Chairman Syafruddin A. Temenggung, Asia Pulse said the agency is way off its projected target of IDR5 trillion (US$591 million) as of this time. As a whole, the agency had targeted to collect IDR26 trillion during its lifetime out of the sale of the assets of debtors. "According to calculations, 50 percent of the target would be reached, and the rest will have to be met with other sources," Mr. Syafruddin said during a press briefing Wednesday last week. To meet the target, he said the agency can always sell the credit assets of Asian Pulp and Paper, with the proceeds received by early 2004. If this is not enough, the assets of Syamsul Nursalim (GT Tire and GT Petrochem) could be sold, and at least 70% of the proceeds would be received in 2004, he added. "The two companies could be sold only after Syamsul Nursalim had settled his obligation as signatory of Shareholder Obligation Settlement document (PKPS)," The Jakarta Post said. Aside from these unsold assets, IBRA still has control of shares in banks that can still be divested in 2004, Mr. Syafruddin said. In addition, the agency still has a plan to carry out the Credit Asset Sales Program (PPAK) and the Property Asset Sales Program (PPAP). In sum, he expects the agency to exceed the IDR26 trillion target by at least IDR100 million. GARUDA INDONESIA: Pays Creditors US$66.9M in December ----------------------------------------------------- Debt-laden flag carrier, Garuda Indonesia, managed to trim down its debt to US$770 million after paying both foreign and domestic creditors US$66.9 million in 2003. According to The Jakarta Post, the company made two payments last month to JP Morgan, European Credit Agencies, state-owned banks BNI and Bank Mandiri, state-owned airport operators Angkasa Pura I and II, among others. Corporate Spokesman Pudjobroto said in a statement on Friday the payment was made in both U.S. dollars and rupiah, totaling US$51.9 million and IDR126.6 billion respectively. JP Morgan took the lion share of the payment with US$44.2 million and IDR60.7 million. "Following the 2003 debt payment, Garuda now has to spend about US$110 million a year to service its debt obligation within seven years," The Jakarta Post quoted Mr. Pujubroto as saying. Meanwhile, the airline recorded a 4.9% increase in number of passengers in 2003, despite the outbreak of the Severe Acute Respiratory Syndrome and the Iraq war. The carrier said 7.23 million took Garuda planes in 2003, up from 6.89 million in 2002. "Asian travelers made up the bulk of the international travelers with a total of 1.09 million passengers last year. Other international passengers came from Australia, New Zealand, the Middle East and Europe. Last month Garuda reopened its Jakarta- Singapore-Ho Chi Minh City route, which was closed in October 1998. This month the airline plans to fly to Beijing," The Jakarta Post said. ========= J A P A N ========= NISSHO IWAI: Wins Power Generation Project in Vietnam ----------------------------------------------------- Toshiba Corporation and Nissho Iwai Corporation won a 5-billion yen contract to supply hydroelectric generating equipment for the Dai Ninh Hydro Power Project in Vietnam. The contract between the companies and Electricity of Vietnam (EVN), the Vietnamese national power Company, was signed on December 18, at a ceremony in Ho Chi Minh City. The scope of the contract covers design, manufacture, installation and commissioning of hydroelectric power generating equipment for the Dai Ninh Hydro Power Station in the Binh Thuan Province, 260 kilometer east of Ho Chi Minh City in southern Vietnam. Implementation will start in January 2004 and run through to December 2007, and will be funded by an overseas development aid (ODA) loan from the Japan Bank for International Cooperation (JBIC). Project consultation will be provided by a joint venture of Japan's Nippon Koei Co., Ltd. and Electric Power Development Corporation Co., Ltd. In support of the steady economic growth that Vietnam has enjoyed in recent years, the Vietnamese government plans to increase the country's installed generating capacity by 10,000MW before 2010. On completion, the Dai Ninh Hydro Power Station will contribute to this target with an installed capacity is 300 MW, provided by two 150MW generators. Toshiba and Nissho Iwai brought a persuasive record to the bidding and negotiations for the contract. Toshiba has extensive experience in hydropower projects, both in Japan and overseas, including Vietnam, and advanced technical capabilities in hydroelectric power generating equipment, including turbines and generators. Nissho Iwai has a historically strong presence in Vietnam's power sector. This depth of experience and capabilities won the confidence of EVN. The two companies are active in other projects in Vietnam. Together they won a contract for the rehabilitation project of Da Nhim Hydro Power Station in June 2003 with contract amount of approximately 2 billion yen. Nissho Iwai also won a contract in October 2003 for the Phu My Substation Project in Ho Chi Minh City, of which TM T&D Corporation, a joint venture of Toshiba Corporation and Mitsubishi Electric Corporation, will supply a set of transformers and surge arrestors. Buoyed by these favorable developments in the course of the year, Toshiba and Nissho Iwai aim to expand their contributions of power projects in Vietnam. Commenting on the contract, Ryuji Minagawa, Vice President of the Thermal Power and Hydroelectric Power Systems and Services Division at Toshiba's Industrial and Power Systems & Services Company said: "The Southeast Asian economies, particularly Vietnam, Thailand and Malaysia, are growing fast. To assure consistent growth, they need more reliable electricity supply. We have a long history of supplying reliable power generating equipment, both thermal and hydroelectric, to the national power companies of those countries. Winning the bid for Dai Nihn project will allow us to continue to support Vietnam's long-term social and economic development." Kyozo Kuramitsu, General Manager of Energy & Power Business Department, Energy & Mineral Resources Company of Nissho Iwai Corporation commented: "With our recent successes in the Vietnam power sector, Nissho Iwai will continue to expand our activity in the power and energy sector in the fast-growing markets in the world." On April 1, 2003, 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. NISSAN MOTOR: Recalls 276,000 Sentras ------------------------------------- Nissan Motor Co. Ltd. will recall 276,000 Sentra cars to replace a faulty engine part, according to Reuters, citing the U.S. National Highway Traffic Safety Administration (NHTSA). The recall covers Sentras built between January 2000 and March 2003. A piece of foam insulation in a box housing the engine computer can emit sulfur, possibly causing corrosion in the computer that can lead to rough running or stalling engines, according to NHTSA. The automaker plans to reduce the number of domestic sales companies from the current 170 to around 100 as part of the rationalization of its sales structure and cut costs, TCR-AP reported recently. Nissan plans to boost domestic sales, the final undertaking of its structural reforms under President Carlos Ghosn. TOSHIBA CORPORATION: Launches 512-megabit XDR DRAM -------------------------------------------------- Toshiba Corporation had started to sample 512-megabit XDR(TM)DRAMs with a data transfer speed of 3.2GHz, the world's fastest speed of any memory device, a Company statement said. XDR DRAMs are designed for high-performance broadband applications, including digital consumer electronics, network systems and graphic systems. The XDR DRAM is based on Rambus's XDR memory interface technology and offers Octal Data Rate, which transfer eight data per one clock cycle and offers eight times the bandwidth of today's best-in-class PC memory. Toshiba recently made available samples of three versions of the new ultra high performance memory, TC59YM916AMG32A, TC59YM916AMG32B, TC59YM916AMG32C. Next-generation broadband applications will process large volumes of data at higher speed in real time and will require large-volume, ultra high-speed memory chips. Toshiba meets these needs with its XDR DRAMs. "Toshiba has been playing a leadership role in realizing XDR DRAM technology," said Shozo Saito, Technology Executive of Semiconductor Company at Toshiba Corporation. "In October 2002, the Company were first to license Rambus's most advanced technologies, and we have promoted their development ever since. Our efforts have borne fruit, as we are first in the world to sample XDR DRAM, and do so well ahead of our original schedule. The start of sample shipments of first generation XDR DRAM is a significant step to supply high-performance products for our customers. We aim for mass production in 2005, and to secure our leading position in this business area." "We are pleased that Toshiba has delivered the first XDR DRAM samples ahead of schedule. Toshiba has taken the first step in providing the market with high-quality, cost-effective XDR DRAMs for the next-generation of innovative broadband products," said Laura Stark, vice President of the Memory Interface Division at Rambus. "We've shared a long and mutually beneficial relationship with Toshiba and look forward to continuing our work with them in making XDR DRAM a success in the marketplace." Major Specifications Model Numbers: TC59YM916AMG32A; TC59YM916AMG32B; TC59YM916AMG32C Configuration: 4 megabits word x 8 banks x 16 bits Max. Data Rate: 3.2 Gbps Cycle Time: 40 nanoseconds; 50 nanoseconds; 60 nanoseconds Power Supply: 1.8V VDD Interface: DRSL (Differential Rambus Signaling Level) Latency: 27 nanoseconds; 35 nanoseconds; 35 nanoseconds Package Size: 1.27 x 0.8mm pitch BGA Note: XDR is a trademark or registered trademark in Japan and/or other counties. Last year, Toshiba Corporation proposed to sell off part of its holding in Shibaura Mechatronics Corporation by the end of 2003, TCR-AP reported recently. The sale of the stock will support Toshiba in its effort to reduce liabilities. It will also bring greater liquidity to Shibaura Mechatronics' stock by widening ownership and increasing its marketability. Toshiba and Shibaura Mechatronics mutually agreed the decision on the sale. About Toshiba Corporation Toshiba Corporation is a leader in the development and manufacture of electronic devices and components, information and communication systems, consumer products and power systems. The Company's ability to integrate wide-ranging capabilities, from hardware to software and innovative services, assure its position as an innovator in diverse fields and many businesses. In semiconductors, Toshiba continues to promote its leadership in the fast growing system-on-chip market and to build on its world-class position in NAND flash memories, analog devices and discrete devices. Toshiba has approximately 166,000 employees worldwide and annual sales of over US$47 billion. For further information, please visit the Toshiba Corporation home page at: www.toshiba.co.jp/index.htm Contact: Toshiba Corporation Corporate Communications Office 1-1-1, Shibaura, Minato-ku, Tokyo, 105-8001, Japan Telephone: 3-3457-2105 Fax: 3-5444-9202 e-mail: press@toshiba.co.jp home page: http://www.toshiba.co.jp/index.htm ========= K O R E A ========= HANARO TELECOM: Issues Interest Rate Swap Notice ------------------------------------------------ Hanaro Telecom Inc. announced the execution of a currency (Korean Won/U.S. Dollar) swap and an interest rate swap contract on December 19, 2003, filed with Korea Securities Dealers Association Automated Quotation Market (KOSDAQ) and the Financial Supervisory Commission of Korea on December 22, 2003. CURRENCY & INTEREST RATE SWAP 1. Transaction: Currency/Interest Rate Swap (KRW/USD Swap) 2. Swap amount (a+b) (KRW): 75,047,915,250 a. Amount of Purchase (KRW): 75,047,915,250 b. Amount of Sale (KRW): - Ratio to Total Assets (%) 2.08 3. Date of Incurrence: December 19, 2003 4. Total Assets at the End of Preceding Business Year (KRW): 3,601,570,278,436. 5. Others - Hanaro entered into a currency swap contract under, which Hanaro exchanged KRW75,047,915,250 for US$63,065,475. Hanaro also entered into an interest rate swap contract under which Hanaro agreed to pay a 7.72 percent fixed rate on the notional principal and receive 3 month LIBOR + spread of 3.25 percent. The spread may change upon the change in the Company's credit rating. The preceding business year hereto means fiscal year 2002. LG CARD: Creditors Lukewarm on Co-management -------------------------------------------- LG Card Co. creditors are reluctant to endorse the co-management plan proposed by the ailing Company's main creditor, Woori Bank, throwing the future of the card Company into deeper uncertainty, the Korea Herald reports. The co-management plan was to spread the 5.15 trillion won (US$4.3 billion) in costs that no bank is willing to shoulder alone. But the plan was not welcomed by the 16 financial institutions that were asked join the rescue plan. Creditors have been debating a 5.15 trillion won debt-for-equity swap after failing to find a buyer for the ailing card unit of LG Group, the nation's second-largest conglomerate. The auction deadline, which expired yesterday, failed to attract any bidder willing to take over the card issuer. LG CARD: Korean Bank Consortium to Manage Ailing Firm ----------------------------------------------------- A consortium of four domestic banks will co-manage ailing LG Card Co., Asia Pulse reported on Friday. The consortium will be composed of Kookmin Bank, main creditor Woori Bank, the state- run Korea Development Bank (KDB) and the National Agricultural Cooperatives Federation, with KDB serving as lead administrator. The four banks and 12 other creditors have already decided to convert 4 trillion won (US$3.34 billion) in debts into equity. LG Group, or the card issuer's parent group, will be required to inject an additional 1.15 trillion won in cash into the troubled Company. Woori said it would receive written consent on the joint management proposal from the 16 creditor institutions Friday. =============== M A L A Y S I A =============== BESCORP INDUSTRIES: Issues Default Payment Update ------------------------------------------------- As required by the Kuala Lumpur Stock Exchange Practice Note 1/2001, Bescorp Industries Berhad (BIB) hereby provides an update on its default in payment. The default by Bescorp Industries Berhad (Special Administrators Appointed) (BIB) as at 30 November 2003 amounted to RM58,974,703.69 made up of a principal sum of RM32,220,139.42 plus RM26,754,564.27 in interest for revolving credit facilities. As at 30 November 2003, the remaining subsidiary companies of BIB, namely Bescorp Construction Sdn Bhd (In Liquidation), Bescorp Piling Sdn Bhd (In Liquidation), Bescorp Concrete Sdn Bhd (In Liquidation), Bespile Sdn Bhd (In Liquidation), Farlil Sdn Bhd (In Liquidation) and Waktu Cerah Sdn Bhd, defaulted on a total sum of RM167,082,132.42 made up of a principal sum of RM60,905,258.44 plus RM43,137,066.62 in interest for revolving credit facilities, term loan, banker's acceptance, hire purchase and lease facilities, and RM63,039,807.36 for overdraft facilities. There were no further developments since our previous announcement with regard to this Practice Note. For a copy of the Company's bank borrowing as at November 30, 2003, go to http://announcements.klse.com.my/linkwebmainpage.nsf/lca.htm EPE POWER: Applies for Capital Reduction Scheme ----------------------------------------------- EPE Power Corporation refers to its announcement dated 1 December 2003 regarding the default in interest and principal payment (PN1) and continuing announcement on Practice Note 4/2001 (PN4). On 4 December 2003, EPE has received the High Court order on EPE's application for Capital Reduction, which is part of debt restructuring exercise. Also with regards to PN1 obligation, EPE informed that the Company has further defaulted in the payment of monthly interest of RM714,177.28 due to several financial institutions (FIs) under its revolving credit (RC) facilities. c.c. Securities Commission (By Fax / Hand) The Issue and Investment Division No.3, Persiaran Bukit Kiara Bukit Kiara, 50490 Kuala Lumpur (Fax No: 6201 5213) INNOVEST BERHAD: KLSE OKs Rescue Scheme Proposal ------------------------------------------------ Innovest Berhad announced that the Kuala Lumpur Stock Exchange via its letter dated 31 December 2003, approved the Company's application for an extension of time from 23 November 2003 to 28 November 2003 for the submission of the Proposed Rescue Scheme to the relevant authorities for their approvals. KELANAMAS INDUSTRIES: Enters Alliance With MPTR ----------------------------------------------- On 26 November 2001, Kelanamas Industries Berhad (KIB) had entered into a Memorandum of Understanding (MOU) with MP Technology Resources Berhad (MPTR), Tai Seng Plastic Industries Sdn Bhd (Tai Seng) and other companies, in relation to a proposed scheme to regularize its financial condition. Subsequently on 28 February 2002, KIB had entered into a Restructuring Scheme Agreement (RSA) with MP Technology Resources Berhad (MPTR), which involves the injection of the following companies into MPTR. a) Tai Seng Plastic Industries Sdn Bhd (Tai Seng) b) Eng Zan Machinery & Trading Sdn Bhd (Eng Zan) c) Highlight Plastic Machinery Sdn Bhd (HL) d) VCM Precision Sdn Bhd (VCM) e) Tralvest (M) Sdn Bhd (Tralvest) f) MP Plastic Industries Sdn Bhd (MPPI) (Collectively referred to herein as New Business) The New Business is a group of companies involved in the manufacturing of plastic related products. Pursuant to the Proposed Restructuring, MPTR would assume the listing status of KIB. Under the RSA, KIB and the New Business agreed to undertake and implement a restructuring scheme, which is subject to approval from the authorities and consist of the following exercises: (a) Proposed Acquisition of KIB; (b) Proposed Acquisition of SBM Food Industries Sdn Bhd; (c) Proposed Scheme of Arrangement; (d) Proposed Acquisition of New Business; (e) Proposed Special Issue; (f) Proposed Offer for Sale; (g) Proposed Acquisition of MPR; (h) Proposed Acquisition of Plastronic; (i) Proposed Transfer of Listing Status; (j) Proposed Disposal/Liquidation; and (k) Proposed General Offer Waiver (GO Waiver) (Collectively referred to herein as Proposed Restructuring) The transactions contemplated above are inter-conditional to each other save for the Proposed Acquisition of MPR, Plastronic and Disposal/Liquidation. The Proposed Acquisition of MPR, Plastronic and Disposal/Liquidation are conditional upon the completion of the other proposals under the Proposed Restructuring but not vice versa. On 3 May 2002, AmMerchant Bank Berhad ('AmMerchant') has made announcement on behalf of the Board of Directors of KIB to seek the approval of Kuala Lumpur Stock Exchange ('KLSE') for an extension of time of three (3) months, from 3 May 2002 to 3 August 2002 for KIB to make the submission of its proposal to the authorities. On 18 June 2002, AmMerchant has made announcement on behalf of the Board of Directors of KIB that KLSE has, via its letter dated 17 June 2002, approved the Company's application for an extension of time to make the required submission to the authorities. The extension of time is effective from 3 May 2002 to 3 August 2002. On 30 August 2002, KIB has submitted the Proposed Restructuring to the Securities Commission. For further details, kindly refer to the announcements made by AmMerchant on behalf of KIB on 2 August 2002 and 30 August 2002. Kuala Lumpur Stock Exchange has, via its letter dated 9 September 2002, approved the Company's application for an extension of time from 3 August 2002 to 30 August 2002 to make the required submission to the authorities. As previously announced, the submission had been made to the relevant authorities on 30 August 2002. The Foreign Investment Committee (FIC) has via its letter dated 21 November 2002, approved the Proposed Restructuring Scheme subject to MPTR, the vehicle to assume the listing status of KIB, maintaining at least 30 percent Bumiputra equity interest at the point of listing. For further details, kindly refer to the announcement made by AmMerchant on behalf of KIB dated 2 December 2002. The Securities Commission has via its letter dated 31 December 2002, approved the Proposed Restructuring Scheme subject to conditions as stated in the said letter. For further details, kindly refer to the announcement made by AmMerchant on behalf of KIB dated 2 January 2003. On 14 January 2003, AmMerchant announced on behalf of the Board of Directors of KIB that via a letter dated 14 January 2003, an appeal was made against the FIC's condition such that MPTR, the Company to assume the listing status of KIB, be granted a period of three (3) years from the date of quotation of MPTR's shares on the Main Board of the KLSE to achieve the 30 percent bumiputra equity interest instead of upon listing of MPTR's shares as contained in FIC's approval letter dated 21 November 2002. On 20 January 2003, AmMerchant had announced on behalf of the Board of Directors of KIB that the Ministry of International Trade and Industry ('MITI') has via a letter dated 15 January 2003 approved the Proposed Restructuring Scheme subject to conditions. For further details, kindly refer to the announcement dated 20 January 2003. Further to the announcement dated 14 January 2003, AmMerchant has on behalf of the Board of Directors of KIB announced on 12 March 2003, that the FIC has via a letter dated 6 March 2003, granted MPTR a period of three (3) years (from the date of quotation of MPTR's shares on the Main Board of the KLSE) to increase its bumiputra shareholding interest to 30 percent. On 22 April 2003, KIB has obtained a Court Order in term of the Application under Section 176(1) of the Companies Act, 1965. On behalf of the Board of Directors of the Company, AmMerchant Bank Berhad has announced that MPTR, the vehicle to assume the listing status of the Company, has on 29 July 2003 entered into the Supplemental Agreement with the vendors. For further details, refer to announcement made by AmMerchant on 31 July 2003. The scheme creditors in the Court Convened Creditors Meeting approved the Proposed Restructuring Scheme on 16 October 2003 and by the Shareholders in the Court Convened Shareholders Meeting and Extraordinary General Meeting on 17 October 2003. On 11 November 2003, Court hearing to sanction the Court Convened Creditors and Shareholders Meeting was granted to KIB. Extract of Court sanction obtained on 18 November 2003 and filed with Companies Commission of Malaysia on 19 November 2003. On 2 December 2003, KIB sent Circular to Shareholders in relation to the closure of books. For details refer to announcement made by Company on 1 December 2003. KLSE has via its letter dated 9 December 2003 approved in principle the listing of MPTR on the Main Board of KLSE in place of KIB which is to be delisted. The listing is tentatively schedules to be completed before middle January 2004. NCK CORPORATION: Issues Default in Debt Payments ------------------------------------------------ In compliance with Practice Note 1/2001, NCK Corporation Berhad announced the following with regards to the status of credit facilities on which the NCK Group has defaulted in payment since the Company's previous announcement dated 2 December 2003. Total borrowings on which the NCK Group has defaulted in payment stood at RM173,627,799 as at 31 December 2003, compared to RM172,289,051 as at 30 November 2003, an increase of RM1,338,748 due to interest accrued for the month of December 2003. NCK CORPORATION: Releases Regularization Plan Update ---------------------------------------------------- NCK Corporation Bhd (NCK) refers to the Practice Note No. 10/2001 in relation to the level of operations, which came into effect on 1 July 2001. The Company announced to the Kuala Lumpur Stock Exchange that NCK is deemed to be an affected listed issuer based on paragraph 2.1(c) of PN 10. Under paragraph 2.1(c) of PN 10, a listed issuer, which has an insignificant business or operations, is deemed to have inadequate level of operations. Insignificant business or operations means business or operations which generates revenue on a consolidated basis that represents 5 percent or less of the issued and paid-up share capital (excluding redeemable preference shares of the listed issuer). As an affected listed issuer pursuant to PN 10, NCK must comply with the obligations set out in paragraph 6 of PN10. However, as announced to the Exchange on 26 February 2001, NCK is also an affected issuer pursuant to Practice Note No. 4/2001 (PN 4). The Kuala Lumpur Stock Exchange has informed NCK that the requirements and obligations set out in PN 4 would prevail over the requirements and obligations under PN 10. NCK will strictly comply with the requirements and obligations under PN 4, in particularly the time frame prescribed in PN 4 to regularize its financial condition. It is expected that NCK's regularization plan would address both its financial condition and the Group's level of operations to warrant a continuing listing on the Official List. PILECON ENGINEERING: Issues Default Status ------------------------------------------ Further to the announcement made by Pilecon Engineering Berhad on 28 November 2003 with regards to the status of default in payment pursuant to Practice Note 1/2001, the Company announced that there have not been any changes to the status of default since then. The steps undertaken by the Company to rectify the default are comprised in the Proposed Scheme of Arrangement pursuant to S176 of the Companies Act, 1965. Please refer to the announcements made by the Company on 21 February 2003 and 15 August 2003 for more details of the Proposed Scheme of Arrangement and modifications thereto. SASHIP HOLDINGS: Administrators Prepare Workout Proposal -------------------------------------------------------- Saship Holdings Berhad refers to the announcement dated 1 December 2003 in relation to the status of SHB's plan to regularize its financial condition. AmMerchant Bank Berhad, on behalf of the Company, announced that the decision from the Kuala Lumpur Stock Exchange (KLSE) in relation to the appeals by SHB against the de-listing of the securities of SHB from the Official List of the KLSE is still pending. Operasi Unggul Sdn Bhd (Operasi Unggul), a wholly-owned subsidiary of Ramunia Energy & Marine Corporation Sdn Bhd (Ramunia), had on 5 December 2003 entered into two (2) agreements with Ramunia, pursuant to the Principal Agreement dated 21 November 2003 between the Company and Ramunia (Principal Agreement), to acquire Teluk Ramunia Fabrication Yard and the entire issued and paid-up share capital of Ramunia Fabricators Sdn Bhd (Acquisition Agreements). The above- mentioned parties had also executed supplemental agreements to the Principal Agreement and the Acquisition Agreements on 18 December 2003 and 29 December 2003. As announced on 31 December 2003, the Company had on 31 December 2003 submitted the applications on the proposal to regularize its financial condition to the Securities Commission. The Special Administrators are currently preparing a Workout Proposal as required pursuant to Section 44 and 48 of the Pengurusan Danaharta Nasional Berhad Act, 1998 as amended by the Pengurusan Danaharta Nasional Berhad (Amendment) Act, 2000. SASHIP HOLDINGS: Submits Regularization Plan to SC -------------------------------------------------- Saship Holdings Berhad refer to its announcements dated 3 November 2003, 21 November 2003, 5 December 2003, 18 December 2003 and 29 December 2003 in relation to the proposals to regularize the financial condition of SHB (Proposed Transactions). The Company refers to the monthly announcement on 1 December 2003 in relation to the status of SHB's plan to regularize its financial condition. AmMerchant Bank Berhad announced that the Company has submitted the applications on the Proposed Transactions to the Securities Commission last week. WOO HING: Extends Investigative Audit to February 29 ---------------------------------------------------- Woo Hing Brothers (Malaya) Berhad (Special Administrators Appointed) (WHB) refer to its announcements dated 9 January 2003, 3 March 2003, 30 September 2003 and 2 October 2003 in relation to the following: (I) PROPOSED ACQUISITIONS; (II) PROPOSED SHARE SWAP; (III) PROPOSED RESTRICTED OFFER FOR SALE (IV) PROPOSED CASH AND SECURITIES TRANSFERS; (V) PROPOSED PLACEMENT; (VI) PROPOSED PUT OPTION; (VII) PROPOSED TRANSFER OF LISTING STATUS; AND (VIII) PROPOSED TRANSFER TO MAIN BOARD On behalf of WHB, Commerce International Merchant Bankers is announced that the Securities Commission, via its letter dated 29 December 2003, has approved a further extension of time from 1 December 2003 to 29 February 2004 for the investigative auditors to complete their investigative audit on WHB. ===================== P H I L I P P I N E S ===================== NEXSTAGE INC.: SEC OKs Capital Reduction Plan --------------------------------------------- The Securities and Exchange Commission (SEC) has approved cement producer NextStage Inc.'s proposal to decrease its capital stock to 100 million pesos from the current 500 million pesos, AFX Asia reports, citing a disclosure to the Philippine Stock Exchange. The capital reduction will be achieved by cutting the par value of NextStage's shares to 0.20 pesos apiece from the current 1.00 pesos. The Company is implementing a quasi-reorganization aimed at wiping out its deficit, which amounted to 184.15 million pesos as of end-2002. In line with the quasi-reorganization, the Company's publicly listed shares will be reduced to 53.65 million shares from 268.25 million shares. NextStage's trading suspension will be lifted on January 5. ================= S I N G A P O R E ================= GOLDEN AGRI-RESOURCES: Issues Debt Rescheduling Update ------------------------------------------------------ Further to our last announcement dated 21 November 2003 (on debt rescheduling status up to 20 November 2003), advised that AFP Group, including GAR Group, did not reschedule any additional debts. The negotiations with its various creditors are still on going. Announcements will be made on a timely basis when there is further progress on our debt rescheduling efforts. Details of the total debt rescheduled during the period July 2001 to 29 December 2003, being the latest practicable date, for AFP and GAR Groups are as follows: Unaudited balance as at AFP GAR Total 30 November 2003 (in US$ million) (excluding GAR) AFP (consolidated) Total rescheduled debt and 535.2 321.1 856.3 debt which do not require rescheduling (A) Total debt which require 53.4 155.1 208.5 rescheduling (B) Total debt outstanding (C) 588.6 476.2 1,064.8 (A) / (C) - in %age 90.9 % 67.4 % 80.4 % (B) / (C) - in %age 9.1 % 32.6 % 19.6 % The total debt of AFP Group (excluding GAR Group) amounted to US$588.6 million (equivalent to S$1,014.7 million), which comprised long-term debt of US$448.8 million (equivalent to S$773.7 million) and short-term debt (including current maturities of long term debt) of US$139.8 million (equivalent to S$241 million). The total debt of GAR Group amounted to US$476.2 million (equivalent to S$821 million), which comprised long-term debt of US$217.6 million (equivalent to S$375.2 million) and short-term debt (including current maturities of long term debt) of US$258.6 million (equivalent to S$445.8 million). Cash and Time Deposits with BII Bank Limited, Cook Islands (BII Bank Ltd) Under the repayment and security package entered into with BII Bank Ltd (announced on 2 November 2001), the first, second, third and fourth aggregate repayments to AFP Group, including GAR Group, were scheduled to be as follows: Date of proposed repayment AFP Group US$million May 2001 - April 2002 27 May 2002 - October 2002 25 November 2002 - April 2003 25 May 2003 - October 2003 36.5 Aggregate repayment by October 2003 113.5 The aggregate total repayment payable by October 2003 to AFP Group, including GAR Group, was US$113.5 million. As at 29 December 2003, the AFP Group, including GAR Group, has reduced its principal cash and time deposits by US$116.1 million. Of this reduction, US$76.7 million represents reductions of cash and time deposits of GAR Group The aggregate total repayment payable by October 2003 to AFP Group, including GAR Group, was US$113.5 million. As at 29 December 2003, the AFP Group, including GAR Group, has reduced its principal cash and time deposits by US$116.1 million. Of this reduction, US$76.7 million represents reductions of cash and time deposits of GAR Group I.R.E. CORPORATION: Issues Profit Warning ----------------------------------------- The Board of Directors of I.R.E. Corporation Limited (IRE) refers to the "Commentary on current year prospects" in the Company's half-year results announcement for the period ended 30 June 2003. In the above announcement, it was stated as follows: "In view of the continued slowdown of the construction industry and the intense market competition, the Group expects to operate in a difficult environment. The sustainability of profits and ability to operate as a going concern depends on the shareholders and existing lenders to provide financial support to the Group." The Board wishes to inform that the Group expects to report a significant loss for the financial year ending 31 December 2003 due to the following: * Cost overrun for projects * Impairment loss on fixed assets We are in the process of finalizing the results for the year ending 31 December 2003 and further updates will be provided when the Company announces its results for the year ending 31 December 2003 in due course. I.R.E. CORPORATION: Unveils Debt & Equity Restructuring Scheme -------------------------------------------------------------- Further to the announcements made on 28 March 2003 and 18 August 2003, the Board of Directors of I.R.E Corporation issued the following updates on the progress of the Debt and Equity Restructuring Plan: 1. The Company is currently in negotiations with its bankers and major shareholders on the conversion of the outstanding loans owing by the Group to them into ordinary shares of the Company. The terms of the conversion have not been finalized. 2. The Company is currently negotiating with the Group's trade creditors for the conversion of the trade debts owing by the Group to them into ordinary shares of the Company. As at the date hereof, the Company has obtained the agreement from some of the Group's trade creditors to convert approximately S$4 million in trade debts into ordinary shares of the Company at a conversion price of S$0.035 for each ordinary share. However, the Company shall be entitled not to proceed with the debt conversion with such trade creditors in the event that the Company is unable to reach a settlement with the Group's other creditors, including its bankers and major shareholders, in respect of the conversion of the debts owing to them by the Group (Debt Conversion Exercise), on terms satisfactory to the Company. 3. The Debt Conversion Exercise shall be subject to inter alia, approval of the SGX-ST and shareholders being obtained. The Board of Directors of the Company will continue to make timely disclosures and announcements on the Debt Conversion Exercise as its progresses. NEPTUNE ORIENT: Appoints New Director ------------------------------------- Neptune Orient Lines (NOL) announced Wednesday the appointment of U.S. business consultant, Robert Holland, Jr., to the Company's Board of Directors. Mr. Holland, a New York-based business consultant and corporate director, will join the NOL Board on 1 January 2004. NOL Group Chairman Mr. Cheng Wai Keung said Mr. Holland's global business experience - spanning consumer goods, banking, manufacturing, business development and the food service industries - would be extremely valuable to NOL. Mr. Holland is a former President and CEO of ice cream-maker Ben & Jerry's and has more recently served as Chairman and CEO of WorkPlace Integrators, one of the largest steel-case office furniture dealerships in the United States. His current directorships include financial services Company, The MONY Group Inc., printing solutions Company, Lexmark International, and the world's largest quick-serve restaurant Company, Yum! Brands Inc., which operates A&W All-American Food, KFC, Long John Silver's, Taco Bell and Pizza Hut globally. Other changes to the NOL Board announced today are the appointment of Mr. Gan Chee Yen to the NOL Nominating Committee and the NOL Audit Committee. Mr. Gan joined the Board on 1 October 2003. NOL Directors Robert Chua and Dirk Goedhart will retire from the Board at the end of the year (with effect from 31 December 2003). Media inquiries: David Glendining +65-6371-5311 david_glendining@nol.com.sg SEATOWN CORPORATION: Submits Financial Result on January 31 ----------------------------------------------------------- The Directors of Seatown Corporation Ltd. announced that the Company has been granted an extension up to 31 January 2004 to announce its consolidated financial statements for its financial year ended 30 September 2003. The Company had applied for this extension as the judicial managers and liquidators appointed to administer the affairs of certain of its group companies had requested for additional time to provide the relevant accounts to the Company. The Company is also under constraint from a manpower shortage in its accounts staff. WEE POH: Financial Controller Resigns From Post ----------------------------------------------- The Board of Directors of Wee Poh Holdings Limited announced that Ms Christine Ng, the Financial Controller of the Group, has resigned from the Company with effect from January 31, 2003. Wee Poh Holdings Limited and the Group incurred losses of S$8,013,000 and $1,887,000, respectively, for the financial year ended June 30, 2003, TCR-AP reported recently. As at June 30, 2003, the Company's and the Group's current liabilities exceeded their current assets by $4,914,000 and $22,012,000 and the Group has a net shareholders' deficit of $7,378,000. As at June 30, 2003, the Group's bank overdrafts exceeded its cash balances by $9,368,000. The directors of the Company are evaluating various strategies to improve the operating performance and financial position of the Company and the Group. =============== T H A I L A N D =============== BANGKOK BANK: To Resume Trading on Local Bourse January 6 --------------------------------------------------------- Beginning January 6, 2004, Bangkok Bank Public Company Limited will be traded on the SET after finishing capital registered procedures. Name : BBL Issued and Paid up Capital (par value 10 baht per share) Old : 18,511,904,940 Baht -Common Share : 1,850,845,494 shares -Preferred : 345,000 shares New : 19,088,428,940 Baht -Common Share : 1,908,497,894 shares -Preferred : 345,000 shares Allocate to : Trinity Securities Company Limited acting as the Over-allotment Agent in order to deliver the shares to the Lenders who were the owners of borrowed shares amounting to 57,652,400 new shares as follows: (1) Public offering to the domestic investors amounting to 30,379,700 shares at offering price per share 79 Baht (2) Public offering to the international investors amounting to 27,272,700 shares at offering price per share 88 Baht Payment Date : 29 December 2003 JASMINE INTERNATIONAL: JIOC Capital Restructuring Approved ---------------------------------------------------------- Subject : Notification of the Resolutions of the Subsidiary's Plan Administrator's Board of Directors' Meeting regarding the Business Rehabilitation of the subsidiary Attention : President of the Stock Exchange of Thailand Pursuant to the Central Bankruptcy Court approval of the Business Rehabilitation Plan (Plan) of Jasmine International Overseas Co., Ltd. (JIOC), a subsidiary of Jasmine International Public Company Limited, on September 30, 2003, Pakkret Planner Co., Ltd., as the Plan Administrator of JIOC, passed on December 26, 2003 these resolutions: (1) The meeting approved that JIOC decreases its registered capital from Baht 2,430,000,000 million to Baht 10 by decreasing its shares to 1 (ONE) ordinary share with a par value of Baht 10. (2) The meeting approved the amendment of JIOC's Memorandum of Association to be in line with the decrease of registered capital. Such amendment will be made by repealing the existing provision in Clause 5 and replace it with the following: Clause 5 Registered Capital 10 Baht Ten Baht Divided into 1 Share One Share Each with the value 10 Baht Ten Baht of Being (3) The meeting approved that JIOC will increase its registered capital according to the Plan: 3.1 Increase the registered capital of Baht 30 million by offering the right to purchase 3 million JIOC ordinary shares at the price of Baht 10 to a private investor the Plan Administrator deems appropriate. Proceeds will be used for Partial Debt Repayment Program. 3.2 Increase the registered capital of Baht 85,384,620 million by issuing new ordinary shares totaling of 8,538,462 shares for Partial Debt-to-Equity Swap Program. (4) The meeting approved the amendment of JIOC's Memorandum of Association to be in line with the increase of registered capital. Such amendment will be made by repealing the existing provision in Clause 5 and replace it with the following: Clause 5 Registered Capital 115,384,630 Baht Divided into 11,538,462 Shares Each with the value 10 Baht of Being At the moment, the Plan Administrator of JIOC is requesting for the Court's permission for amendments of the Memorandum of Association of JIOC as required under Section 90/64 of the Bankruptcy Act. However, the aforementioned decrease in capital according to the Business Rehabilitation Plan of JIOC will not cause any impact to the financial status of JAS, the parent company, because JAS has already set up provisions for loss on the excess of investments. All the investors are hereby publicly informed and the Company will keep you updated on further progress, if any. Sincerely yours, Mr. Somboon Patcharasopak Chaengwatana Planner Co., Ltd. Plan Administrator, Jasmine International Public Company Limited MANAGER MEDIA: Trading Remains Suspended Due to REHABCO Status -------------------------------------------------------------- Beginning January 6, 2004, the Stock Exchange of Thailand (SET) will allow the securities of Manager Media Group Public Company Limited (MGR) to be listed on the SET after finishing capital increase procedures. However, MGR is a listed company under REHABCO sector and is in the rehabilitation process, therefore, the SET has still suspended trading all securities of MGR until the causes of delisting are eliminated. Anyway, the company could request the SET to allow continued trading under the REHABCO category after it completed the conditions specified by the SET. Name : MGR Issued and Paid up Capital Old : 62,500,000 Baht (Common Stock 62,500,000 shares) New : 102,499,834 Baht (Common Stock 102,499,834 shares) Par Value : 1 Baht Allocate to : General Investors and Existing Shareholders 15 persons, 39,999,834 shares Ratio : - NA - Price Per Share : 3 Baht and 6 Baht Payment date : 29 November 1999 - 12 November 2003 PLASTIC PRECISION: Issues Affiliate's Restructuring Agreement ------------------------------------------------------------- On December 30, 2003, Plastic Precision Industry Co., Ltd. (PPIC), an affiliated company of Pato Chemical Industry PCL (Pato), has successfully reached a restructuring agreement with a foreign investor who will subscribe to 4 million newly issued shares at a par value of 10 baht per share before April 30, 2003 for the production of extruded PMMA sheets and coating of all types of cast and extruded plastics. In addition, a 60 million baht banking credit facility was officially approved on December 29, 2003 to support this new project, which is expected to start commercial operation in Q3 of 2004. In view of this, Pato is confident that PPIC will have the capability to repay all its outstanding debts. On December 30, 2003 Pato signed an agreement with PPIC to reschedule PPIC's payment of the total outstanding debt of 30.56 million baht to Pato with a one-year grace period in monthly installments until the obligations are fully settled. Under this agreement, Pato will be granted an option to convert up to 15 million baht of the outstanding debt into equity. Sincerely yours, Mr. Metha Trillit President PRASIT PATANA: May be Delisted for Failure to Set up Audit Team --------------------------------------------------------------- The Stock Exchange of Thailand (SET) posted the "NP" sign on Prasit Patana Public Company Limited (PYT) effective December 31, 2003 onward as the company had not been able to establish an audit committee composed of three members, as specified by the SET. Following its procedures when a listed company fails to establish an audit committee within the deadline: (1) The "NP" (Notice Pending) sign will be posted for the first three months against the securities of the listed company, which fails to follow the SET's rules concerning audit committee. (2) After three months of the "NP" sign, an "SP" (Suspension) sign will be posted if it still has not met the SET's rules concerning audit committee. (3) If after three months of the "SP" sign, a listed company still has not met the SET's rules, the SET will publicly announce the possible delisting of the firm in line with Clause 9 (3) of the SET's Notification regarding Delisting of the securities. Finally, if after another three months, it still has not met the SET's rules, the SET may delist its securities. ********* 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, Larri-Nil G. Veloso, Ma. Cristina Pernites-Lao, Editors. Copyright 2004. 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. 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