/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/040123.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, January 23, 2004, Vol. 7, No. 16 Headlines A U S T R A L I A LOOKSMART LIMITED: Appoints Ex-Aussie Chief Interim Group CEO NATIONAL AUSTRALIA: ABN Questions Bank's Risk Management System NATIONAL AUSTRALIA: CEO Can Still Claim Hefty Paycheck if Fired NATIONAL AUSTRALIA: To Release Internal Probe Results this Week NATIONAL AUSTRALIA: Chairman Gives Update on Internal Probe VILLAGE ROADSHOW: To Seek Nod for Scheme Arrangement January 30 VILLAGE ROADSHOW: Sets Terms of Preference Share Buyback WOODSIDE PETROLEUM: NWS Venture to Supply Japan's Chubu Electric C H I N A & H O N G K O N G ALWAYS FORTUNE: Faces Winding up Petition Before HK High Court DRAGON SONIC: HK High Court Sets Winding up Hearing February 25 EAST SUCCESS: Bank of China Initiates Winding up Proceedings FABRIC CENTRE: Ryoden Engineering Files Winding up Petition I N D O N E S I A BANK LIPPO: IBRA Fails to Get Reasonable Stake Price Again J A P A N HITACHI LIMITED: Settles Lawsuits Versus International Rectifier JAPAN AIRLINES: Flight Cancellation to Extend Several More Weeks MITSUBISHI MOTORS: To Eliminate 100 Less Workers in U.S. Plant NIPPON TELEGRAPH: Targets Summer Launch of Broadband TV K O R E A LG CARD: Replacement of Main Banker in November Key to Bailout M A L A Y S I A IJM CORPORATION: Posts Details of Asset Sales to Commerce Asset PAN MALAYSIAN: Details Takeover of MJG by Wholly Owned Unit P H I L I P P I N E S BENPRES HOLDINGS: Clarifies Amendment to Consolidation Pact MANILA ELECTRIC: ERC Ignorant of its Own Rulings, Says President MANILA ELECTRIC: May Have Dangled ERC Concession by Creditors MANILA ELECTRIC: S&P Retains 'CC' Rating Following Debt Rollover MANILA ELECTRIC: Completes PHP4.7 Billion Capital Investment NATIONAL STEEL: Liquidator Predicts April or May Reopening UNIVERSAL RIGHTFIELD: Rehab Petition Denied on Mere Technicality S I N G A P O R E CAPITALAND LIMITED: Members Voluntary Liquidation Complete SINGAPORE TELECOMMUNICATIONS: Director Sells Interest in Unit T H A I L A N D TPI POLENE: KTB Wants Another 3 Months to Complete Due Diligence * Large Companies with Insolvent Balance Sheets - - - - - - - ================= A U S T R A L I A ================= LOOKSMART LIMITED: Appoints Ex-Aussie Chief Interim Group CEO ------------------------------------------------------------- LookSmart(R), Ltd. (Nasdaq: LOOK; ASX: LOK), a leader in search, announced last Tuesday (January 20, 2004) that Jason Kellerman will be stepping down as the Company's Chief Executive Officer and member of the Board of Directors. The Company's Board of Directors has appointed Damian E. Smith, previously CEO LookSmart Australia and VP International, to serve as the Company's interim Chief Executive Officer, effective immediately. A Board-directed search for a successor is now underway. The Company also announced preliminary results for the fourth quarter 2003 that are stronger than previously estimated with revenues between $43 and $45 million. Cash generation of approximately $8.7 million was particularly strong during the quarter with total cash and marketable securities rising to approximately $70 million as of December 31, 2003. LookSmart has made substantial progress in its restructuring efforts following the completion of its distribution agreement with MSN on January 15, 2004. The Company has recently sold the assets of its Australian operation to its yellow pages business partner, Sensis, a division of Telstra Ltd., Australia's leading telecommunications company, and has announced the closure of its UK operations. LookSmart expects to reduce its headcount from 429 at the end of the third quarter 2003 to less than 200 by the end of the first quarter 2004. The Company will report final financial results for the fourth quarter 2003 and will provide a more detailed update on its restructuring plans on its regularly scheduled conference call on February 5, 2004. "Damian is a strong operational leader who has demonstrated success in building and re-building businesses for profitability. He has strong knowledge of all aspects of the company's operations since joining the product development group in 1998, having overseen several critical technology acquisitions and progressing rapidly into a senior leadership role," said Evan Thornly, LookSmart's Chairman. "We appreciate Jason's many contributions to the company culminating in our recent financial results." "The team and I are now completing the restructuring of the company to align our operations with the significant reduction in revenue expected. We are dramatically cutting costs, positioning our pay-for-placement business for growth and applying our technology assets to capture new and exciting opportunities in the large, growing and profitable Internet search industry," sad Mr. Smith. "LookSmart has made several successful business transitions in our history and we are committed to rebuilding the business to generate long-term profitability." Mr. Smith joined LookSmart in 1998 and was previously in senior operating roles at Boral, Australia's leading building products company. He holds a Masters degree in Public Policy from Harvard University and an Arts degree from the University of Sydney. To view full copy of this press release, click http://bankrupt.com/misc/looksmart_limited.pdf NATIONAL AUSTRALIA: ABN Questions Bank's Risk Management System --------------------------------------------------------------- National Australia Bank continued to reap scathing reviews from market observers Wednesday, as speculations swirled that losses from the rogue trading scandal could be bigger than it is now. The most stinging assessment came from ABN Amro, which released research, stating it did not think the bank was capable of making a reasonable estimate as to what the losses might be. "NAB's ability to unnerve investors appears limitless," The Advertiser quoted the ABN Amro report stating, in an apparent veiled reference to NAB's disasters with former U.S. mortgage broker Homeside and loans to troubled bus company, King Bros. "NAB maintains there is a very low probability that the total losses will be as high as market speculation of AU$600 million. Perhaps the most worrying issue is that it has taken a further week to establish this position. In our view the statement provides little comfort, only confusion," the report partly reads. ABN Amro is maintaining its add recommendation for now, but it quickly pointed out that the reward profile looked extremely challenging and "not for the faint-hearted." "Given the events of the past week, it is likely that market speculation will increase now that management credibility looks to be seriously damaged (perhaps beyond repair), with the result that we do appear to be reaching some form of watershed in this issue. The key issue will be how much pain is inflicted before we reach that point," ABN Amro said. On Tuesday, Fitch Ratings warned of a possible downgrade as it placed the bank on review. The move followed the 30-cent dive of NAB's share to AU$29.54 that day. Fitch noted that the biggest concern for NAB right now is the uncertainty brought by the scandal. Several analysts share this sentiment, according to The Advertiser. They opine that the market fears centered less on the likelihood total losses would exceed AU$600 million but more on the bank's uncertainty. "This is more a credibility issue for the bank, rather than deterioration in credit worthiness," Andrew Kemp from Alliance Capital Management told The Advertiser. NATIONAL AUSTRALIA: CEO Can Still Claim Hefty Paycheck if Fired --------------------------------------------------------------- Embattled National Australia Bank CEO Frank Cicutto could receive as much as AU$6 million in severance pay if he is sacked any time soon, The Age said yesterday. Under his three-year employment contract signed just last year, Mr. Cicutto is entitled to six-month notice and a payment equivalent to 18 months of his fixed salary, the paper said. "Given his annual base pay is AU$2.1 million and that, in practice, he would be unlikely to serve the six-month notice period yet be paid as normal, he would likely receive at least AU$4 million plus his accrued super after more than 30 years with the bank," The Age said. "On top of this, he would also receive one year's fixed pay as part of a 'restraint of trade' clause in the contract, taking the total severance sum to about AU$6 million." Mr. Cicutto has come under fire following the discovery of rogue trading involving the bank's foreign-currency division. The bank's losses from these transactions are estimated to reach AU$600 million. In a veiled warning, bank Chairman Charles Allen earlier this week said he is prepared to make drastic decisions to restore confidence in the bank. Many have interpreted these words as a sign that Mr. Cicutto's days are numbered. Others in the firing line include Chief Financial Officer Richard McKinnon and head of risk management, Christopher Lewis, The Age said. Meanwhile, the paper said the result of the internal audit conducted by PricewaterhouseCoopers may be released today. But Mr. Allen cautioned it would take several days for the additional losses, resulting from the revaluation of the remaining foreign currency portfolio, to be known. "Th[is]... shows this is a complex problem, and the bank is not sure how far it extends, and wants to spend a lot of time looking at the details before it communicates with the market," Wilson HTM analyst, Brett Le Mesurier, told The Age in an interview. NATIONAL AUSTRALIA: To Release Internal Probe Results this Week --------------------------------------------------------------- National Australia Bank Chairman Charles Allen pleaded for patience from investors even as he promised to make public the results of the internal investigation now being undertaken within the week. The bank has been bombarded by questions since it admitted over the weekend that losses from the rogue foreign-currency trading could top AU$600 million. Mr. Allen said the bank is now sifting through and re-valuing 22,000 contracts to determine the extent of losses. "So it is not surprising you can't get instant answers," The Age quoted Mr. Allen on Tuesday. "Analysts are increasingly pessimistic about a short-term recovery of the bank's credibility after taking into account the uncertainty about the size of the trading losses," The Age said. Morgan Stanley noted the bank is now trading at the lowest price-to-earnings ratio of any Australian bank stock. Credit Suisse First Boston, for its part, said the foreign exchange trading issue alone was "likely to remain an enduring constraint" on the bank's share price. "Accordingly, we would not be looking for any near-term recovery in the NAB share price at this stage." UBS, according to paper, predicts the bank could traders in the likely event that NAB reduced trading-risk limits. Meanwhile, some analysts and fund managers have demanded that CEO Frank Cicutto resign. "If I was Frank Cicutto I would consider myself an optimist if I was to iron five shirts for the next week," IMB Matrix Asset Management Brian Ingham told The Age in an interview. "We have seen Korean frauds costing AU$80 million, the HomeSide debacle which we were told was going to cost them a couple of hundred million and ending up costing them AU$4 billion. We then had things like software cost blow-outs, the King Bros bus credit issues -- it's been operationally across many aspects of the bank and a fairly poor period for NAB under (Mr. Cicutto's) tenure," he said. NATIONAL AUSTRALIA: Chairman Gives Update on Internal Probe ----------------------------------------------------------- I am writing on behalf of the Board of Directors to provide you with a direct explanation about unauthorized foreign currency options trading within the National and what we are doing to ensure it does not happen again. Since we made an announcement about this matter last week there has been a considerate amount of ill-informed comment and speculation. Your directors are keen to ensure you have all the facts currently available. The key developments in this matter are: (i) Foreign currency traders incurred losses in their options portfolio and sought to hide such losses by recording fictitious trades in our systems. We believe this element of the problem has been fully identified. The losses incurred by the traders have been identified as AU$185 million. (ii) Having identified the fictitious trades and removed them from our systems, we considered it would be prudent to undertake a complete revaluation of the remaining foreign currency portfolio to ensure it is appropriately and conservatively valued. This involves a careful examination of thousands of transactions. (iii) We have identified that some additional losses will arise but the full extent of such additional losses will not be known for several days. Based on our work to date, we caution shareholders against acting on any media speculation about this matter. We will advise shareholders as soon as the full extent of the revaluation is known. The Directors and executive management are extremely disappointed by the news of this breach of internal policies and procedures. We have established a structured process to review and resolve all of the issues arising from this matter. The Australian Stock Exchange and all relevant regulatory authorities were advised. We also sent a formal reference to the Australian Federal Police so that they could evaluate whether any criminal charges should be brought against those involved. Four members of the foreign currency options trading desk involved in this matter were suspended pending the outcome of the internal investigation and external inquiries and we tool appropriate steps to manage the options trading position. An independent investigation by PricewaterhouseCoopers has been commissioned to determine what happened and how it occurred. The Board will closely monitor the internal and external investigations, and the Risk Committee, chaired by Mr. Graham Kraehe, will receive regular management updates and reports from the independent investigator, PricewaterhouseCoopers. The results of this independent investigation will be made public. We will continue to update you and the broader community as developments arise. At this early stage, we expect to release the outcomes of the investigation by the end of February. In the interim, copies of the National's announcement on this matter are available to you on the National's Web site http://www.nabgroup.comor can be obtain from the Office of the Company Secretary by telephoning (from outside Australia 613) (from outside Victoria 03) 8641 4170. In conclusion, I can assure shareholders that this matter is confined to a small part of the National's operations and that it will not affect our overall business nor our customers. I can assure shareholders that the Board will take whatever action is necessary to ensure that you, shareholders, customers and staff can have full confidence in the National. Signed by DCK ALLEN Chairman VILLAGE ROADSHOW: To Seek Nod for Scheme Arrangement January 30 --------------------------------------------------------------- This meeting has been convened by the Directors out of an abundance of caution following the decision of the Supreme Court of Victoria in relation to the original scheme. The purpose of this meeting is to allow holders of Preference shares to consider and, if thought fit, pass a special resolution that any variation, abrogation or cancellation of rights attached to the Preference Shares effected or arising from the buy-back is approved and sanctioned. A booklet containing explanatory information on the scheme, a report on the scheme by the independent expert, Grant Samuel, and the notices of this meeting, the General Meeting and the second Preference Shareholder meeting has been sent to all members of the Company, including all Preference Shareholders. This meeting is a class meeting only and is not the Scheme Meeting to approve the scheme. The Scheme Meeting will commence promptly after the conclusion or adjournment of this meeting. The scheme must be approved by the Supreme court of Victoria, and will become effective on an office copy of the Court order approving the scheme being lodged with the Australian Securities & Investment Commission. It is expected that the Court hearing at which the Court will be asked to approve the scheme will be held on or shortly after January 30, 2004. Notwithstanding approval of the scheme by the Court, under section 246D of the Corporations Act, persons holding at least 10% of the Preference Shares may apply to the court to have set aside form the buy-back, the buy-back agreements, the resolution to approve the buy-back agreements or the scheme on the grounds that there has been unfair prejudice. Such variation, abrogation or cancellation of rights will take effect one month after the variation, abrogation or cancellation is made, or, if an application is made to the Court to have the variation, abrogation or cancellation set aside, when the application is withdrawn or finally determined. If the Court approves the scheme, it is proposed that the Company will lodge an office copy of the Court order approving the scheme with ASIC after this additional one month period has elapsed. Accordingly, if no application is made to the Court to have the variation, abrogation or cancellation set aside, it is proposed that the Company will lodge an office copy of the Court order approving the scheme with ASIC on February 24, 2004. If an application is made to the Court to have the variation, abrogation or cancellation set aside, it is proposed that the Company will lodge an office copy of the Court order approving the scheme with ASIC when the application is withdrawn or finally determined. The scheme will become effective on the office copy of the Court order being with ASIC. It the office copy of the Court order being lodged with ASIC occurs on February 24, 2004, it is expected that the buy-back will take place on March 2, 2004. Your directors unanimously recommend that Preference Shareholders vote in favor of the resolution to be put to this meeting. Each Director entitled to vote on the resolution at this meeting to vote in favor of the resolution. Robert G. Kirby Chairman VILLAGE ROADSHOW: Sets Terms of Preference Share Buyback -------------------------------------------------------- On July 28, 2003, the board announced its intention to propose and recommend that the Company implement a scheme of arrangement with the holders of it's A Class Preference Shares involving the buy-back of all Preference Shares. On November 3, 2003, Shareholders supported the resolutions necessary to give effect to the scheme. However, on November 18, 2003, the Supreme Court of Victoria declined to approve the scheme for the reason that the Company had excluded Preference Shareholders from voting their Preference Shares and Ordinary Shareholders who were also Preference Shareholders from voting their Ordinary shares against the resolution to approve the buy-back associated with the scheme. The Court found that, although the Company was correct in excluding Preference Shareholders and Ordinary Shareholders who were associates of Preference Shareholders or associates of Preference Shareholders from voting their ordinary Shares, against the resolution. On November 20, 2003, the Company announced its intention to: (i) appeal the Court's decision not to approve the original scheme; and (ii) ask Shareholders to approve a new scheme in substantially identical terms to the original scheme. As in the case of the original scheme, the proposal consideration for the buy-back is $1.25 for every Preference Share held, 25 cents of which will be paid in cash and $1 of which will be applied under the scheme on behalf of the Preference Shareholders to acquire one Unsecured Note with an initial face value of $1. Each Unsecured Note will have an initial face value of $1 and is to be repaid in 3 installments: (i) 33 cents cash on the first anniversary of the date of issue of the Unsecured Notes; (ii) 33 cents cash on the second anniversary of the issue date; and (iii) 34 cents cash on the third anniversary of the issue date. Interest will be payable on the principal outstanding on the Unsecured Notes six monthly in arrears at the rate of 10% per annum, the first interest payment being due 6 months after the issue date. To view full copy of this press release, click http://bankrupt.com/misc/village_roadshow.pdf WOODSIDE PETROLEUM: NWS Venture to Supply Japan's Chubu Electric ---------------------------------------------------------------- North West Shelf Australia LNG advises that the NWS Venture LNG Sellers and Chubu Electric Power Company, Inc signed Thursday a sale and purchase agreement for 0.6 million tones of LNG a year starting 2009. The 15-year contract finalizes a key terms agreement signed with Chubu Electric in August 2001. The agreement also represents the last of the sale and purchase agreement with the NWS Venture's customers that have underpinned the expansion of the NWS Venture LNG processing facilities at its gas plant near Karratha, Western Australia. The NWS Venture is currently building a fourth LNG processing train with a capacity of 4.2 million tones of LNG a year, significantly increasing capacity from an existing 7.5 million tones of LNG a year. A second offshore trunkline is also being constructed enhancing operational reliability and providing opportunities for growth. A ninth LNG ship, due for delivery in April 2004, will add capacity to the Venture's shipping fleet of eight purpose-built LNG ships. NWS Australia LNG President John Banner said that the NWS was delighted to be continuing its business relationship with Chubu Electric. "This is a landmark day for the North west Shelf Venture as we expand upon a relationship that has been built over the past 15 years of reliable LNG deliveries," Mr. Banner said. "The agreement signed [Thursday] is a sign of confidence in the NWS Venture and is Japan's third largest power company based in the city of Nagoya. The utility is the second largest importer of LNG into Japan with LNG-fired power stations accounting for more than 40% of its total generating capacity." North West Shelf Australia LNG is the LNG marketing organization for the North West Shelf Venture. The six equal participants in the North West shelf Venture are: Woodside Energy Ltd (Operator); BHP Billiton Petroleum (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; Chevron Texaco Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; and Shell Development (Australia) Proprietary Limited. For Media Inquiries, contact: Tony Johnson Corporate Affairs Coordinator, NWS Venture Phone: (08) 9348 5034 Mobile: (0417) 916 638 For Investment Inquiries, contact: Mike Lynn Investor Relations Manager, Woodside Phone: (08) 9348 4283 Mobile: (0439) 691 592 ============================== C H I N A & H O N G K O N G ============================== ALWAYS FORTUNE: Faces Winding up Petition Before HK High Court -------------------------------------------------------------- The High Court of Hong Kong will hear on February 4, 2004 at 10:00 a.m. the petition seeking the winding up of Always Fortune Limited. Chow Kin Ming of Room 2007, 20/F., 248 Queen's Road East, Wanchai, Hong Kong filed the petition on December 2, 2003. Li & Partners represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Li & Partners, which holds office at Room 2201-3, 22nd Floor, World Wide House, 19 Des Voeux Road Central Hong Kong. DRAGON SONIC: HK High Court Sets Winding up Hearing February 25 --------------------------------------------------------------- The High Court of Hong Kong will hear on February 25, 2004 at 9:30 a.m. the petition seeking the winding up of Dragon Sonic (H.K.) Limited. Yu Kit Leung of Room 2508, Tai Sang House, Kin Sang Estate, Tuen Mun, New Territories, Hong Kong filed the petition on December 12, 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. EAST SUCCESS: Bank of China Initiates Winding up Proceedings ------------------------------------------------------------ The High Court of Hong Kong will hear on February 25, 2004 at 10:00 a.m. the petition seeking the winding up of East Success Electronics Company Limited. Bank of China (Hong Kong) Limited (the successor corporation to The Kwangtung Provincial Bank pursuant to Bank of China (Hong Kong) Limited (Merger) Ordinance (Cap. 1167) of 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong filed the petition on December 16, 2003. Tsang, Chan & Wong represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tsang, Chan & Wong, which holds office on the 16th Floor, Wing On House, 71 Des Voeux Road Central Hong Kong. FABRIC CENTRE: Ryoden Engineering Files Winding up Petition ----------------------------------------------------------- The High Court of Hong Kong will hear on February 18, 2004 at 9:30 a.m. the petition seeking the winding up of Fabric Centre Industries Limited. Ryoden Engineering Contracting Co. Ltd. of 10th Floor, Manulife Tower, 169 Electric Road, North Point, Hong Kong filed the petition on December 9, 2003. Munors represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Munors, which holds office on the 9/F., Asian House, 1 Hennessy Road, Wanchai, Hong Kong. ================= I N D O N E S I A ================= BANK LIPPO: IBRA Fails to Get Reasonable Stake Price Again ---------------------------------------------------------- Swissasia Global, the only consortium short-listed by the Indonesian Bank Restructuring Agency to buy its stakes in PT Bank Lippo (LPBN.JK) has submitted an under-prized bid, according to IndoExchange. The group only offered IDR403 for every share constituting the 52.05% stake of IBRA, well below the IDR591-a-share floor price. The agency has given the consortium, led by Austria's Raiffeisen Zentralbank Oesterreich AG, until next Tuesday to revise its offer. "Swissasia's under priced bid is just the latest of the hitches IBRA has faced in its attempt to offload the Bank Lippo stake," according to Dow Jones. "IBRA canceled October's sale after failing to get good bids and amid allegations that Lippo's founder, the Riady family, was involved in the bidding to regain control of the bank." Created in 1998 as an ad hoc body to clean up the messy banking sector following the Asian financial crisis, IBRA is slated to be dissolved next month. It is now racing against time to sell as many banking assets that remain under its custody before government finally disband the group on February 27. ========= J A P A N ========= HITACHI LIMITED: Settles Lawsuits Versus International Rectifier ---------------------------------------------------------------- Hitachi Ltd., its affiliate Renesas Technology Corp. and U.S. semiconductor maker International Rectifier Corp. have decided to amicably settle all outstanding lawsuits among them, Japan Today said yesterday. These lawsuits include those in Japan and the United States, according to the report. As part of the settlement, "the three companies also agreed to conclude a patent cross-licensing agreement as they recognize each party's intellectual property rights," Japan Today said. JAPAN AIRLINES: Flight Cancellation to Extend Several More Weeks ---------------------------------------------------------------- About 30-40 flights a day will be cancelled by Japan Air Systems in the next couple of weeks after it discovered engine cracks on 18 more aircrafts, Kyodo News said. "The airline has canceled a total of domestic 277 flights over the past three days, inconveniencing 16,000 passengers. The latest cancellations occurred Wednesday, when 62 flights were scrapped," the paper said. The cracks were all discovered on McDonnell Douglas-made medium- sized planes. MITSUBISHI MOTORS: To Eliminate 100 Less Workers in U.S. Plant -------------------------------------------------------------- Some 100 employees at Mitsubishi's only U.S. plant were spared in the widely anticipated layoff slated for the year, The Wall Street Journal said Wednesday. Plant Spokesman Dan Irvin told the paper the company trimmed down the number of affected employees after evaluating the plant's latest performance. The Japanese carmaker had announced up to 350 in job-cuts in December, "after waning demand cut production by 15% last year," the paper said. The dip also forced the plant in Normal, Illinois to scrap a US$200 million expansion. "It's a decision based on our anticipation of what the market's needs are going to be for the long term," Mr. Irvin told The Wall Street Journal. Mr. Irvin said month-to-month sales improved each of the last three months of 2003, although it still lagged behind the same period the year before, when sales peaked due to generous credit policies. The plant's onsite inventory also dipped from about 22,000 cars last month to about 11,000, he said. The plant is offering the same package it had offered to employees four years ago, the last time it implemented job-cuts, which drew more interest than there were positions to be eliminated, the paper said. The package includes a US$60,000 buyout and three-month extension of medical benefits. "Hopefully, this will get them what they need," said Ralph Timan, president of United Auto Workers Local 2488, which worked with the company on the buyout offer, told the Wall Street Journal. Layoffs will begin after April 1, Mr. Irvin said. The plant has 2,870 union workers and 490 nonunion employees. NIPPON TELEGRAPH: Targets Summer Launch of Broadband TV ------------------------------------------------------- Nippon Telegraph and Telephone Corp. and Sky Perfect Communications Inc. will pilot a joint venture in Osaka next month, according to News on Japan. The test run relates to the planned offering of broadband television broadcasting service sometime this summer (June- August), according to the Japanese news portal, citing the Nihon Keizai Shimbun. It added a joint venture pact is now in the works, where NTT would likely have a 3% stake. Under local laws, the telecom giant is barred from owning more than 3% of a broadcaster. "The new broadband service will be available only in areas high- speed asymmetric digital subscriber line (ADSL) Internet service by NTT's two regional telephone units -- NTT East Corp. and NTT West Corp. -- is available," News on Japan said. "The service will require special receivers to hook television sets up to the broadband networks." The maiden service will initially offer about 100 channels, gradually increasing these to 300 channels, the number being offered by Sky Perfect's satellite service. A movie-on-demand feature is also in the offing, the report said. "The firms have yet to set a subscription fee for the service, but it is likely to be at least 2,000 yen per month for standard service -- similar to the fees of other broadband service providers, including the Softbank Corp. group and KDDI Corp.," the portal said. This broadband service is expected to increase the subscribers of NTT, which currently number 4 million, and that of Sky Perfect, which boasts of 3 million subscribers. ========= K O R E A ========= LG CARD: Replacement of Main Banker in November Key to Bailout -------------------------------------------------------------- Now it can be told: LG Card Co. purposely ousted Korea First Bank (KFB) as its main banker in November to forge a "Korean solution" to its financial woes. According to Bloomberg News, the choice of Woori Bank to replace the U.S.-controlled KFB was a calculated move to clinch a bailout package that eventually materialized earlier this month. The news agency said 10 days after Woori took over as main banker, the credit-card company immediately got a KRW2 trillion emergency loan. The bank is also allegedly the key to the KRW5 trillion bailout package forged this month. "They had to get the foreigner out of there to clinch the bailout," James Rooney, president of Seoul-based Market Force Co, which advises overseas investors in South Korea, told Bloomberg. "It's a Korean solution," added the former president of Templeton Investment Trust Management Co. in Seoul. "LG Card's rescue shows that South Korean companies still rely on support from local banks and the government, even after the nation threw its banks open to overseas investment after the 1997-1998 financial crisis. Foreigners own 30 percent of Korea's US$662 billion banking market from 1 percent in 1997," Bloomberg says. =============== M A L A Y S I A =============== IJM CORPORATION: Posts Details of Asset Sales to Commerce Asset --------------------------------------------------------------- Sale & Purchase Agreement for the Sale of Land together with an Office Tower to Commerce Asset-Holding Berhad, and Sale & Purchase cum Surrender of Lease Agreement with Pernas Properties Sdn Bhd and Sovereign Place Sdn Bhd for the Purchase of Four (4) Pieces of Land, all situated in Seksyen 46, Bandar Kuala Lumpur, Daerah Kuala Lumpur. IJM Properties Sdn Bhd (IJMP), a wholly owned subsidiary, has on 20 January 2004 entered into two (2) separate agreements: (1) Sale & Purchase Agreement (SPA) with Commerce Asset-Holding Berhad (CAHB) Under this agreement, IJMP will sell to CAHB three (3) pieces of freehold land held under Geran 30000 Lot 1724, Geran 7158 Lot 1508 and Geran 7157 Lot 1507 and part of a piece of the land held under Geran 7162 Lot 1512, all situated in Seksyen 46, Bandar Kuala Lumpur, Daerah Kuala Lumpur, Negeri Wilayah Persekutuan measuring approximately 10,149 square meters ("Development Land") together with an office tower and ancillary facilities to be erected thereon ("Building") for a total cash consideration of RM375,000,000 ("Purchase Price"). The Building consists of a 39-storey office tower with a total built-up area of approximately 114,744 square meters together with a four- level basement for 1,120 car park bays. The purchase consideration will be paid as follows: (i) 10% of the Purchase Price upon the execution of the SPA; (ii) 80% is to be paid progressively based on completion of the works; and (iii) A retention sum of 10%, which will be paid to stakeholders upon delivery of vacant possession (VP), of which 5% will be released to IJMP upon expiry of fourteen (14) days after presentation of the Memorandum of Transfer of the Development Land Title for registration in favor of CAHB, 2.5% to be released to IJMP after six (6) months from the date of delivery of VP and the balance 2.5% after twelve (12) months from the date of delivery of VP. The conditions precedent to the SPA include the completion of the Sale & Purchase cum Surrender of Lease Agreement (SPCSLA) between IJMP, Pernas Properties Sdn Bhd (PPSB) and Sovereign Place Sdn Bhd (SPSB) and the delivery of written confirmation thereof directly to CAHB; the issuance of the document of title of the Development Land free from all encumbrances, and the approval from the Foreign Investment Committee ("FIC") being obtained by CAHB. The completion of the development and sale of the subject property to CAHB is expected to be completed within fifty-two (52) months from the date of the SPA. (2) Sale & Purchase cum Surrender of Lease Agreement ("SPCSLA") between IJMP, Pernas Properties Sdn Bhd ("PPSB") and Sovereign Place Sdn Bhd ("SPSB") Under this agreement, IJMP will acquire four (4) pieces of freehold land held under Geran 30000 Lot 1724, Geran 7162 Lot 1512, Geran 7158 Lot 1508 and Geran 7157 Lot 1507, all situated in Seksyen 46, Bandar Kuala Lumpur, Daerah Kuala Lumpur, Negeri Wilayah Persekutuan ("the Land") measuring approximately 20,697 square meters, for a total cash consideration of RM100,000,000 comprising RM7,000,000 to be paid to PPSB ("Land Purchase Consideration") and RM93,000,000 to SPSB for the surrender of the lease of the Land to IJMP ("Lease Surrender Consideration"). The purchase consideration will be funded from the sale proceeds from CAHB and internally generated funds. PPSB is the beneficial and registered owner of the Land, while SPSB is the holder of the lease of the Land, which will expire on 10 May 2083. The purchase consideration will be paid to the respective parties as follows: (i) 5% of the Land Purchase Consideration and Lease Surrender Consideration will be paid upon signing of the SPCSLA; and (ii) The balance of the Land Purchase Consideration and Lease Surrender Consideration will be paid over a period of three (3) years in three (3) equal installments from the date of fulfillment or deemed fulfillment of the last condition precedent. The conditions precedent to the SPCSLA include approval from the FIC for the purchase of the Land being obtained by IJMP, the execution of the SPA between IJMP and CAHB, the shareholders' approval of Pernas International Holdings Berhad (PIHB) and Tradewinds (M) Berhad (TWS) for the sale of Land, if required, and the waiver from obligations under a joint venture agreement dated 7 May 1991between PSSB and Datuk Bandar Kuala Lumpur to develop the Land. PPSB is a wholly owned subsidiary of PIHB, while TWS is a 53.02% subsidiary of PIHB, and SPSB is a wholly owned subsidiary of TWS. None of the Directors or substantial shareholders of the Company, nor persons connected with them, has any interest, direct or indirect, in the transactions. The transactions will not have any significant effect on the earnings or net tangible assets per share of the Company for the financial year ending 31 December 2004, but is expected to contribute positively to the future earnings of the Group. This announcement is also available for reference at IJM Web site at http://www.ijm.com PAN MALAYSIAN: Details Takeover of MJG by Wholly Owned Unit ----------------------------------------------------------- PM Securities, on behalf of PMI, wishes to announce that the total shareholding of MJB including acceptances received up to 5.00 p.m. on 20 January 2004, being the final closing date of the Offer, held by PMI together with Excelton Sdn Bhd ("Excelton"), a wholly owned subsidiary of PMI are as follows: Number of MJB % of the issued Shares and paid-up share Capital of MJB(1) Number of MJB shares held by PMI and Excelton as at 20 November 2003, 80,852,700 64.72 being the latest practicable date prior to the dispatch of the offer document Number of MJB shares acquired by Excelton during the offer period 6,516,500 5.22 i.e. from the date of dispatch of the Offer Document up to January 20, 2004 Acceptances for the 25,900,184 20.73 Offer received after the dispatch of the Offer Document i.e. from November 21, 2003 to January 20, 2004 Total 113,269,384 90.67 Note: (1) Based on the existing issued and paid-up capital of MJB of 124,921,000 ordinary shares of RM1.00 each (after excluding 1,079,000 ordinary shares in MJB held as "treasury shares" pursuant to the share buy-back exercise of MJB). Shareholders of MJB are advised that pursuant to paragraph 8.15(4) of the revised Listing Requirements of the Malaysia Securities Exchange Berhad, trading in the securities of MJB will be suspended immediately upon the expiry of 30 market days from the date of the immediate announcement by MJB when PMI has acquired more than 90% of the total number of its listed shares. This announcement is dated 20 January 2004. cc: Wong Wing Seong Securities Commission COMPANY PROFILE The PMI Group is involved in a wide range of activities in Malaysia and overseas through its subsidiaries and associates. Group operations are located in Malaysia, Singapore, Hong Kong, China, Australia, the UK, Europe, India and North America. Among the PMI Group is 46.13% owned listed company Malayan United Industries (MUI), and 61.84% owned Metrojaya, also listed. MUI has interests ranging from, among others, retailing, hotels, food and confectionery, property, financial services, manufacturing and trading, travel and tourism and educational services. MUI owns 42.88% of Laura Ashley Holdings plc, a company listed on the London Stock Exchange. Metrojaya operates departmental stores, specialty stores and a hypermarket. The Group, including its associated company, MUI, is continuing its efforts to consolidate and rationalize its operations to strengthen its financial position and improve its earnings. CONTACT: 21st Floor, MUI Plaza Jalan P.Ramlee 50250 Kuala Lumpur Tel: 03-21441470 Fax: 03-21447789 ===================== P H I L I P P I N E S ===================== BENPRES HOLDINGS: Clarifies Amendment to Consolidation Pact ----------------------------------------------------------- This is in reference to the news article entitled "PLDT, Lopezes seal equity merger in Beyond Cable" published in the January 21, 2004 issue of The Philippine Star. The article reported that: "The Philippine Long Distance Telephone Co. (PLDT) and the Lopez-owned Benpres group have finally agreed to make their respective controlling interests in Home Cable and Sky Cable following the signing of master consolidation agreement (MCA) between the two groups recently, The STAR learned. The signing of the MCA and the merger of Sky and Home is expected to complete the consolidation of the county's two leading cable television companies that began with a merger at the operations level. x x x "Sources however disclosed that the merger is likely to occur through the acquisition by the Benpres group of Home Cable's assets. In return for the assets, Sky Cable will be issuing shares to the PLDT group. Under this scenario, Sky Cable will be owning Home Cable while the owners of Home will be holding shares in Sky Cable. All interests in Sky Cable, both by the Lopezes and by the PLDT group, will be consolidated in the holding company Beyond Cable. x x x" Benpres Holdings Corporation ("BPC"), in its letter dated January 21, 2004, stated that: "x x x We wish to clarify that what was signed was a further amendment to the Master Consolidation Agreement dated July 18, 2001 to amplify certain provisions. However, the consolidation of the ownership of the PLDT Group and Benpres Group in the Cable companies into Beyond Cable Holdings, Inc. as well as the merger of the cable companies have been agreed upon in the July 18, 2001 Master Consolidation Agreement. The amendment, among other things, clarified the infusion of additional capital into Beyond Cable Holdings, Inc. and that the merger of operations can take any form that would address regulatory and personnel issues. The parties are still discussing the form of the merger." For your information, Jose G. Cervantes Senior Vice President Philippine Stock Exchange MANILA ELECTRIC: ERC Ignorant of its Own Rulings, Says President ---------------------------------------------------------------- Manila Electric Co. (Meralco) accused the Energy Regulatory Commission of ignorance of its own jurisprudence when it ordered the power distributor to reset the computation of a provisional rate hike. The commission had granted Meralco in November a 12-centavo provisional increase pending the resolution of its petition for a 13-centavo hike; setting the effectivity of the order January 1. Meralco, citing previous rulings of the regulator, implemented the increase on energy consumptions reflected on all billing statements dated January 1 onwards. "What the ERC (Energy Regulatory Commission) stated in its January 9 order was for us to implement the increase based on consumptions beginning January 1, 2004, which is a deviation from the usual way we charged our customers," Meralco President Jesus Francisco told ABS-CBN News in a phone interview Tuesday. He explained that Meralco charges customers based on a billing cycle, which is a process that starts with meter reading, followed by billing, then collection. The commission's clarification that the provisional increase should only be implemented on consumptions from January 1 is "contrary to the generally accepted definition of a billing cycle," he said. "We consulted this with the other utility firms, and all of them used the billing cycle, which, in this case, would mean that all bills that came out after January 1 would be paid even if the consumption on those bills were made partly in December or January," Mr. Francisco said. In its motion for reconsideration, Meralco cited that in previous rulings of the then-Energy Regulatory Board (ERB), specifically in 1984, 1986, and 1990, the effectivity dates of the adjustment was specifically stated as "meter readings starting..." from a certain date, as this defines the start of a billing cycle. When the ERB shifted to the "February 1994 billing cycle" to specify the effectivity of a rate adjustment, it clarified that what it meant by February 1994 billing cycle was "power consumed by the customers in January 1994 which would then be billed in February 1994." With over 4 million customers, Meralco said it reads meters on a staggered basis. A reading in January 1, 2004, which is the start of the January billing cycle, will comprise mainly of December consumption. A reading in January 31, the end of the January 2004 billing cycle, will consist of January consumption, it added. "Depending on when the specific meter is read, the increase will apply either to consumption in December 2003 or January 2004, or partly in December 2003 and another part in January 2004," Meralco said in its motion. MANILA ELECTRIC: May Have Dangled ERC Concession by Creditors ------------------------------------------------------------- Details about the debt rollover successfully negotiated by the Manila Electric Co. (Meralco) remains unclear a day after the transaction. In a disclosure to the Philippine Stock Exchange Wednesday, Meralco simply stated that the maturity of the US$88 million short-term loan that fell due that day has been extended to March this year. The lack of details has spawned speculations that the company is carving out a deal using the concession it had gained from the Energy Regulatory Commission recently. According to Filipino Web portal Yehey, on January 12 the commission granted Meralco provisional authority to convert US$600 million unsecured obligations into secured loans to give it flexibility in sourcing new financing. "The deterioration in its credit ratings as well as its failure to comply with the required financial ratios are clear indicators that Meralco is having and will continue to have difficulty in addressing its financial burden," Yehey quoted the January 12 order of the ERC. "Meralco is hereby granted a provisional authority to convert its unsecured loans into bonded indebtedness in the aggregate amount not to exceed US$600 million," the order reads, adding, "The commission finds it reasonable to allow Meralco to have the flexibility to incur additional loans to ease its financial burden. Thus, the provisional approval of the instant application is warranted." The ERC, according to Yehey, also authorized Meralco to issue supplemental indentures providing for the issuance of its first mortgage bonds under the mortgage trust indenture. "Meralco's mortgage trust indenture lists all current and future assets of the company for purposes of using these as collateral," Yehey said. "The firm earlier issued bonds which were backed by assets in the mortgage trust indenture to effectively provide collateral for loans it secured in the past. The document, which was drawn up in 1957, had been used as collateral for loans from multilateral agencies, among others." Meralco faces more than PHP4 billion in maturing debts this quarter. These include the US$88 million short-term loan that had just been extended and PHP3.9 billion in long-term unsecured debts. According to Yehey, the company filed its application to convert US$600 million unsecured obligations into secured loans on September 5, 2003. Meralco justified the application as the only way for it to successfully pursue debt options to finance its cash shortfalls and ensure it won't default on obligations. It said its current financial standing allows it to avail of long-term loans only if it can provide security under its mortgage trust indenture. MANILA ELECTRIC: S&P Retains 'CC' Rating Following Debt Rollover ---------------------------------------------------------------- Standard & Poor's Ratings Services said yesterday that the Philippines' Manila Electric Co. Ltd.'s (Meralco; CC/Negative/-- ) immediate liquidity crisis has been averted. This follows the company's agreement with its lenders to roll over its PHP4.7 billion (US$88 million) debt that was due for repayment on Jan. 21, 2004. Meralco's lenders have agreed to a deferment of this repayment until March 4, 2004. Nevertheless, Meralco remains stressed. The company also has scheduled long-term debt repayments due in February and March, and customer refunds required by the electricity regulator. The company is attempting to manage its financial strain through a number of measures, which are subject to varying degrees of uncertainty. Standard & Poor's 'CC' long-term rating on Meralco reflects the pressure on the company's finances and that it remains currently highly vulnerable to nonpayment of its financial commitments in full and in a timely manner. For more information, contact: Mark Legge (Melbourne) Phone: 61-3-9631-2041 Ian Greer (Melbourne) Phone: (61) 3-9631-2032 MANILA ELECTRIC: Completes PHP4.7 Billion Capital Investment ------------------------------------------------------------ Manila Electric Co. reported yesterday that the three projects it had undertaken last year were completed in December. These projects are: (a) The construction of the first phase of a new 34.5-kilovolt feeder in Quezon City, (b) The retirement and relocation of a portion of a feeder from Mandaluyong to Makati city, and (c) The unloading of a sub-station feeder in the province of Bulacan. "The projects are part of the power firm's PHP4.7 billion capital investment program in 2003," AFX-Asia quoted company a statement released yesterday. NATIONAL STEEL: Liquidator Predicts April or May Reopening ---------------------------------------------------------- National Steel Corporation liquidator, Danilo L. Concepcion, expects the mothballed steel-maker to be up and running again by April or May, following the acceptance by creditor banks of Global Infrastructure Holdings Inc.'s offer recently. In an interview with BusinessWorld, he said the banks and the Indian buyer will sign a purchase agreement within 60 to 90 days; thus the plant could reopen by April at the earliest. "After the new owner takes over, I will bow out as liquidator. Although I still have remaining assets to sell, such as spare parts and raw materials, these could easily be sold to Global Infrastructure," he told BusinessWorld. The proceeds will be used to pay National Steel's unsecured creditors, including former employees. Between now and April, Mr. Concepcion said, Global Infrastructure will prepare the plant for operations, by cleaning and repairing some equipment and machinery. Meanwhile, he denied allegations of irregularity in the bidding process. He said the offer of Global Infrastructure was "far superior" to that of LNM Holdings N.V. "The banks believe that the guaranteed cash payment by Global Infrastructure amounting to PHP13.5 billion over a 10-year period was better than the PHP2.3 billion payment proposed by LNM. Under LNM's proposal, this cash payment is payable only after all the legal issues concerning the Iligan plant have been resolved in favor of [National Steel]," he said. "On a present value basis, the banks believe that Global Infrastructure's offer is more than double than LNM's offer despite a lower down payment by Global Infrastructure of PHP1 billion," Mr. Concepcion added. The plant closed in 1999 after failing to pay debts of PHP16 billion, leaving some 4,000 workers jobless. The firm blamed the entry of cheaper steel from Russia and South Africa for its financial woes. UNIVERSAL RIGHTFIELD: Rehab Petition Denied on Mere Technicality ---------------------------------------------------------------- For claiming that no similar case was pending against the company, a Mandaluyong court rejected Tuesday the rehabilitation petition filed by DM Consunji. According to Filipino Web portal Yehey, Regional Trial Court Judge Edwin D. Sorongon junked the petition to rehabilitate Universal Rightfield Holdings after noting that parent DMCI Holdings and DMCI subsidiaries, Universal Leisure Club and Universal Leisure Corp., are in fact facing a PHP2 billion civil case that directly relates to Universal Rightfield. Ironically, this separate case is also pending before Judge Sorongon. "The false claim prompted the magistrate to deny the rehabilitation petition nearly two weeks after it was filed. It is still unknown whether DM Consunji could still re-file the case following the dismissal," Yehey said. "The dismissal meant Universal Rightfield will have to continue paying its debts as these fall due, including the almost PHP500 million it allegedly owes parent company, DMCI Holdings," the portal added. Meanwhile, Judge Sorongon ordered the shareholders of Universal Leisure Club to prove that DMCI, its units and officials had wasted Club Funds. Unless they do, he said, he will not create a management committee that will take over the operations of the Club, realty company Universal Rightfield and Universal Leisure Corp. -- all subsidiaries of DMCI Holdings. The judge also denied the application to place the companies under receivership. "I will forego the appointment of a receiver but instead hear the propriety of forming a management committee. But the court will not grant your request if you don't show proof of dissipation and losses," the judge said during Tuesday's hearing. According to Yehey, the PHP2 billion contract breach suit was brought against DMCI, subsidiaries and officers after they allegedly failed to deliver amenities in exchange for shares bought at PHP1 million apiece. "Under the rules on intra-corporate controversies, a court may only approve the plea for a management committee if it is proven that fund wastage was committed by corporate officials," Yehey said. "The committee is usually comprised of at least three independent financial and management experts appointed by the court." The next hearing of this civil suit will be on January 29. ================= S I N G A P O R E ================= CAPITALAND LIMITED: Members Voluntary Liquidation Complete ---------------------------------------------------------- Further to the announcements made on 24 July 2003 and 24 September 2003, the Board of Directors of CapitaLand Limited wishes to announce that its indirect subsidiaries, namely, Shanghai Bai Hua Property Investment Consultants Co., Ltd ("Bai Hua") and Shanghai Xin Rui Property Development Co., Ltd ("Xin Rui"), have been liquidated. The liquidation of Bai Hua and Xin Rui (both incorporated in the People's Republic of China) is not expected to have any material impact on the net tangible assets or earnings per share of the CapitaLand Group for the financial year ending 31 December 2004. SINGAPORE TELECOMMUNICATIONS: Director Sells Interest in Unit ------------------------------------------------------------- PART I 1. Date of notice to issuer: 21/01/2004 2. Name of Director of Subsidiary: Ng Seng Sum 3. Please tick one or more appropriate box(es): [x] a Director's (including a director who is a substantial shareholder) Interest and Change in Interest. [Please complete Parts II and IV] PART II 1. Date of change of interest: 20/01/2004 2. Name of Registered Holder: Ng Seng Sum 3. Circumstance(s) giving rise to the interest or change in interest: Sales in open market at own discretion 4. Information relating to shares held in the name of the Registered Holder: No. of shares held before the change: 107,100 As a percentage of issued share capital: No. of shares which are the subject of this notice: 100,000 As a percentage of issued share capital: Amount of consideration (excluding brokerage and stamp duties) per share paid or received: SG$1.96 No. of shares held after the change: 7,100 As a percentage of issued share capital: PART III 1. Date of change of interest: 2. The change in the percentage level: From % to % 3. Circumstance(s) giving rise to the interest or change in interest: 4. A statement of whether the change in the percentage level is the result of a transaction or a series of transactions. PART IV 1. Holdings of Director of Subsidiary, including direct and deemed interest: Direct Deemed No. of shares held before change: 107,100 % of issued share capital: - No. of shares held after change: 7,100 % of issued share capital: =============== T H A I L A N D =============== TPI POLENE: KTB Wants Another 3 Months to Complete Due Diligence ---------------------------------------------------------------- The Central Bankruptcy Court of Thailand postponed until April 26 the next meeting of TPI Polene Plc and its creditors, following a manifestation by Krung Thai Bank that its due diligence would take another three months to complete. "The court has delayed the court hearing by a further three months. KTB [Wednesday] told the court that the entire process of conducting a due diligence on TPIPL's asset and debt would take until April to complete," Business Day quoted Apichart Phunkaesorn as saying yesterday. He is the lawyer of Bangkok Bank Plc (BBL). Krung Thai will base its decision whether to extend a new loan to the company on the outcome of its due diligence. This new loan is crucial for TPI Polene, as most foreign creditors believe the ability of the firm to raise new capital would eliminate such long-standing legal disputes concerning a failed fundraising and default on principal debt. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Shareholders Total Equity Assets Company Ticker ($MM) ($MM) ------- ------ ------------ ------- CHINA & HONG KONG ----------------- Guangdong Sunrise Holdings Co., Ltd. 000030 (184.24) 23.04 Jinan Qingoi Motorcycle 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 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 -------- Christiani & Nielsen CNT (24.03) 35.80 (Thai) PCL Datamat PCL DTM (9.53) 13.66 Jutha Maritime PCL JUTHA (3.70) 31.60 National Fertilizer PCL NFC (30.82) 297.40 Nakornthai Strip Mill PCL NSM (654.33) 608.46 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, 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. 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 ***