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/raid1/www/Hosts/bankrupt/TCRAP_Public/040209.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, February 9, 2004, Vol. 7, No. 26 Headlines A U S T R A L I A NATIONAL AUSTRALIA: CEO Plans Senior Management Changes C H I N A & H O N G K O N G CROWN LEGEND: Schedules Winding Up Hearing March 3 RICH CREATION: Faces Winding Up Petition SUN POWER: Schedules Winding Up Hearing March 17 I N D O N E S I A BANK NEGARA: Government May Sell 51% Stake BANK PERMATA: IBRA Undecided on Timing of Sale J A P A N FURUKAWA ELECTRIC: S&P Affirms BB- Rating MITSUBISHI MOTORS: Recalls 6,171 Vehicles NIPPON TELEGRAPH: Posts Y8.20 Trillion Nine-month Revenue SUMITOMO ELECTRIC: Swings Into Y13.43 Net Profit K O R E A LG CARD: Koram Bank Joins Rescue Plan LG CARD: LoneStar Rejects Plan to Offer Funds DAEWOO HEAVY: Union Blocks Sell Off M A L A Y S I A FORESWOOD GROUP: Exchange OKs Regularization Plan Extension GREATPAC HOLDINGS: SC OKs Audit Extension OILCORP BERHAD: Unveils Investigative Audit Results UNITED CHEMICAL: Seek Changes in Restructuring Scheme YCS CORPORATION: Issues Default Notice Update YCS CORPORATION: Aims to Regularize Financial Condition P H I L I P P I N E S NATIONAL POWER: Seeks Higher Rates S I N G A P O R E OKS CREDIT: Releases Dividend Notice SINGAPORE LEASING: Issues First Interim Dividend Notice YONGNAM HOLDINGS: Creditors File Suit Against Unit ZEPETA CO.: Issues Dividend Notice T H A I L A N D DATAMAT PUBLIC: Submits Revised Q3 Financial Statement TONGKAH HARBOUR: Unveils Capital Increase - - - - - - - - ================= A U S T R A L I A ================= NATIONAL AUSTRALIA: CEO Plans Senior Management Changes ------------------------------------------------------- National Australia Bank (NAB) Chief Executive John Stewart (NAB) will consider making senior management changes, but wants an investigation into rogue foreign currency options trading to be completed first, Dow Jones reports. He said trading limits have been changed to reduce the bank's risk profile, but conceded this more conservative approach could hurt profit. After the investigation is completed, the bank will work on a strategy for sustained growth, he added. ============================ C H I N A & H O N G K O N G ============================ CROWN LEGEND: Schedules Winding Up Hearing March 3 -------------------------------------------------- The High Court of Hong Kong will hear on March 3, 2004 at 9:30 A.M. the petition seeking the winding up of Crown Legend (Hong Kong) Limited. Fong Mei Chuen of Room 4, 6/F., Block 3, Po Tin Interim Housing, Tuen Mun, New Territories, Hong Kong filed the petition on December 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 at the 34th Floor, Hopewell Centre 183 Queen's Road East, Wanchai, Hong Kong. RICH CREATION: Faces Winding Up Petition ---------------------------------------- The High Court of Hong Kong will hear on March 3, 2004 at 9:30 A.M. the petition seeking the winding up of Rich Creation Trading Limited. Chong Lin Investments Limited whose registered office is situate at Room 11, 6th Floor, Haiphong Mansion, No. 101 Nathan Road, Kowloon, Hong Kong filed the petition on March 3, 2004. Johnson Stokes & Master represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Johnson Stokes & Master at 18th Floor, Prince's Building, 10 Chater Road, Central Hong Kong. SUN POWER: Schedules Winding Up Hearing March 17 -------------------------------------------------- The High Court of Hong Kong will hear on March 17, 2004 at 10 A.M. the petition seeking the winding up of Sun Power International Investment Limited. Cheung Lin Tai, Choi Kwok Chick and Yan Yan Motors Limited, all of Unit A, 9th Floor, Amtel Building, 144-148 Des Voeux Road Central, Hong Kong filed the petition on January 16, 2004. Anthony So & Co. represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Anthony So & Co. at Unit A, 9th Floor, Amtel Building 144-148 Des Voeux Road Central, Hong Kong. ================= I N D O N E S I A ================= BANK NEGARA: Government May Sell 51% Stake ------------------------------------------ The Indonesian government may sell a 51 percent stake in PT Bank Negara Indonesia to PT Bank Mandiri, Dow Jones reports, citing Minister of State Enterprises' Affairs Laksamana Sukardi. The government is currently studying such a possibility, including Bank Mandiri's capability to finance the acquisition. The state-owned bank was last year involved in a US$200 million lending fraud revolving around the payment of fictitious letters of credit by one of its branches in Jakarta. It said late last year that it might lose about half of its previously forecast 2003 net profit due to the scandal. The government owns a 99.12 percent stake in BNI and 80 percent equity in Bank Mandiri. BANK PERMATA: IBRA Undecided on Timing of Sale ---------------------------------------------- The Indonesian Bank Restructuring Agency (IBRA) said the process of selling Permata Bank might not be completed before the agency is dissolved on February 27, Asia Pulse reported on Friday. If IBRA fails to complete the selling of Permata Bank, the process would be continued by the new body to be established by the government. On the choice of which sale would get priority, he said it would depend on the market situation. ========= J A P A N ========= FURUKAWA ELECTRIC: S&P Affirms BB- Rating ----------------------------------------- Standard & Poor's Ratings Services has affirmed its long-term corporate credit rating on Furukawa Electric Co. Ltd. (BB/Negative/--), despite the Company lowering its financial forecasts for fiscal 2003 (ending March 2004). The outlook on the rating remains negative. The rating on Furukawa could be lowered if delays in restructuring lead to deterioration in the Company's financial profile beyond the revised projections, or if it is faced with additional expenses from its U.S. optical fiber solutions (OFS) business. A downward revision in expected earnings made shortly after the company showed excessive optimism over demand for domestic optical fiber is also a negative factor for the rating. On August 14, 2003, Standard & Poor's lowered its rating on Furukawa to 'BB' from 'BB+', reflecting the company's deteriorating capital structure owing to devaluation losses stemming from OFS. Furukawa's capital structure is expected to deteriorate further due to an increase in net losses, although total debt to capital is estimated to remain at slightly above 70 percent. MITSUBISHI MOTORS: Recalls 6,171 Vehicles ----------------------------------------- Mitsubishi Motors Corporation and Nissan Motor Co. will recall a total of about 114,000 vehicles in seven models to fix defects, according to Kyodo News. Nissan will recall 80,000 Caravan minivans and Como minivans, 7,000 Atlas, Condor and Elf pickup trucks and 21,000 Datsun sport-utility vehicles, all manufactured between October 1998 and September last year. Mitsubishi will recall a total of 6,171 of its four-wheel-drive Grandis minivans produced between April last year and January this year. NIPPON TELEGRAPH: Posts Y8.20 Trillion Nine-month Revenue --------------------------------------------------------- Nippon Telegraph and Telephone Corporation (NTT) posted 8.20 trillion in sales for the nine-month period from April to December, according to Reuters. This was the first time NTT released nine-month results and it did not provide a year-ago comparison. The telecom group posted a nearly 12-fold jump in net profit for the first half of its fiscal year, thanks to cost-cutting and favorable comparisons with year-ago results, which were hurt by big overseas losses. SUMITOMO ELECTRIC: Swings Into Y13.43 Net Profit ------------------------------------------------ Sumitomo Electric Industries Limited booked a group net profit of 13.43 billion yen in the April-December period, versus a net loss of 14.71 billion yen a year earlier, Kyodo News said on Friday. In the first three quarters of the current business year, Sumitomo Electric also said its pretax profit jumped more than 25 times from 1.14 billion yen to 29.38 billion yen on a 6.1 percent rise in sales to 1,099.98 billion yen. ========= K O R E A ========= LG CARD: Koram Bank Joins Rescue Plan ------------------------------------- KorAm Bank decided Thursday to join a massive effort to rescue LG Card Co., Asia Pulse reports. The decision by KorAm came hours after Korea Exchange Bank pulled out of the 2.3 trillion won (US$1.9 billion) rescue package for LG Card, which is reeling under hefty debts. LG Card's 16 major creditors put forward the rescue package in January, entrusting the management of the card firm to state-run Korea Development Bank. Carlyle Group Inc. and J.P. Morgan Chase & Co. of the United States are KorAm's controlling shareholders with a combined 36.7 percent stake in the bank. LG Card, saddled with debts of more than 23 trillion won, has been struggling to stay above water since late last year. LG CARD: LoneStar Rejects Plan to Offer Funds --------------------------------------------- U.S. private equity fund Lone Star has rejected plans to offer financial aid to LG Card, resulting in Korea Exchange Bank (KEB)'s refusal to offer funds to the ailing credit card Company, the Maeil Business Newspaper said on Friday. LG Card creditors scheduled a meeting on February 5 to discuss the future of the credit card Company. DAEWOO HEAVY: Union Blocks Sell Off ----------------------------------- Labor union members of Daewoo Heavy Industries & Machinery (DHI) said they would block the government's plan to sell off the Company, Digital Chosun reports. Last month, the Korea Asset Management Corporation (KAMCO), which controls DHI, said it would carry out preliminary international bidding for the Company in March to pick a preferred bidder for exclusive negotiations. Daewoo Heavy Industry and Machinery, Ltd. has narrowed its debt ratio to 190 percent in 2003 from 253 percent a year earlier, due to early clearing of debts of 52 billion won (US$43.8 million), TCR-AP reported recently. Such financial improvement and results will positively effect the restructuring project undertaken by the firm's creditors, including Korea Asset Management Corporation. =============== M A L A Y S I A =============== FORESWOOD GROUP: Exchange OKs Regularization Plan Extension ----------------------------------------------------------- In line with the Practice Note.4/2001 of the listing requirement of the Malaysia Securities Exchange Berhad (The Exchange), Foreswood Group Berhad announced that the Exchange has approved an extension of time from January 22, 2004 to March 21, 2004 to enable the Company to submit its regularization plan to the relevant authorities for approval. GREATPAC HOLDINGS: SC OKs Audit Extension ----------------------------------------- Greatpac Holdings Berhad (GHB) announced that the Securities Commission (SC) approved its proposal to extend the Company's investigative audit and submission of the audit report to April 2004. OILCORP BERHAD: Unveils Investigative Audit Results --------------------------------------------------- Oilcorp Berhad refers to the announcement by Abrar Corporation Berhad (ACB) dated December 23, 2002 whereby ACB had obtained the approval of the Securities Commission (SC) for its proposed restructuring scheme. One of the conditions imposed by the SC in its approval for the proposed restructuring scheme was that ACB is required to appoint an independent audit firm to conduct an investigative audit on the past losses of ACB and its subsidiary companies (Group). On 17 February 2003, the SAs of ACB appointed Messrs Shamsir Jasani Grant Thornton (SJGT) to carry out the investigative audit as announced in the monthly announcement dated 3 March 2003. The investigative audit on the Group covered the financial years 1998 to 2002 (Relevant Period) was submitted to the SC on August 8, 2003. Oilcorp Berhad hereby attached below a summary of the findings of the investigative audit as extracted from the Executive Summary prepared by SJGT. To view full copy of this press release, click http://bankrupt.com/misc/oilcorp0205.doc UNITED CHEMICAL: Seek Changes in Restructuring Scheme ----------------------------------------------------- United Chemical Industries Berhad (UCI) announced that the Securities Commission (SC) has approved the Company's proposed restructuring scheme as explained in its announcement dated January 6, 2004. The SC had also via its letter dated January 12, 2004, approved the application by Alliance, on behalf of Perbadanan Kemajuan Negeri Perak, to seek a waiver from the obligation to extend a mandatory offer arising from the proposed restructuring of UCI. UCI is currently awaiting the outcome of its applications to the Foreign Investment Committee (FIC), via the SC, and the Ministry of International Trade and Industry (MITI) for the revised Proposed Restructuring. UCI had on 19 January 2004, submitted its applications to the FIC, via the SC, and MITI in respect of the revisions to the Proposed Restructuring. In the meantime, UCI is finalizing its preparation for an application to the High Court of Malaya in Ipoh to hold a Creditors' Court Convened Meeting under Section 176 of the Companies Act, 1965. YCS CORPORATION: Issues Default Notice Update --------------------------------------------- YCS Corporation Berhad is currently in the midst of addressing the default in its payment of interest in respect of redeemable convertible secured loan stock B (RCSLS-B) and irredeemable convertible unsecured loan stock A (ICULS-A). Further details, if any, will be announced accordingly. YCS CORPORATION: Aims to Regularize Financial Condition ------------------------------------------------------- YCS Corporation Berhad is required to make the requisite announcement to the Malaysia Securities Exchange Berhad (MSEB) of a plan to regularize its financial condition by January 4, 2004. The Company, on January 27, 2004 obtained an approval from MSEB an extension of three months from January 5, 2004 to March 31, 2004 to enable the Company to make the requisite announcement. Save for the above, there is no change to the status announced earlier. ===================== P H I L I P P I N E S ===================== NATIONAL POWER: Seeks Higher Rates ---------------------------------- National Power Corporation (Napocor) wants the Energy Regulatory Commission (ERC) to reconsider the lowering of electricity prices in Luzon and the Visayas, as well as the increase in Mindanao rates, reports the Business World. It also wants a new price-setting mechanism to replace the long run avoidable cost (LRAC) scheme, which was suspended by the commission in an order last January 26. Under this scheme, electricity is more expensive during peak hours. The commission had ordered Napocor to reduce its effective rates in Luzon and the Visayas after it had failed to justify its petition for a rate increase. ================= S I N G A P O R E ================= OKS CREDIT: Releases Dividend Notice ------------------------------------ OKS Credit & Moneylenders (S) Pte Ltd. issued a notice of intended dividend as follows: Address of Registered Office: Formerly of 230 Upper Bukit Timah Road #06-11 Singapore 588188. Court: Supreme Court, Singapore. Number of Matter: Companies Winding Up No. 179 of 1995. Last Day for Receiving Proofs: 13th February 2004. Name & Address of Liquidator: The Official Receiver The URA Centre (East Wing), 45 Maxwell Road #06-11, Singapore 069118. Dated: 30th January 2004. SUNARI BIN KATENI Assistant Official Receiver. SINGAPORE LEASING: Issues First Interim Dividend Notice ------------------------------------------------------- Singapore Leasing International (Pte) Ltd. issued a notice of first interim dividend as follows: Address of Registered Office: c/o 10 Collyer Quay #21-01 Ocean Building, Singapore 049315. Court: High Court of Singapore. Number of Matter: 600004 of 2001. Amount per centum: 11.1 cents per Dollar. First and final or otherwise: First Interim. When payable: 30th January 2004. Where payable: 10 Collyer Quay #21-01 Ocean Building Singapore 049315. YONGNAM HOLDINGS: Creditors File Suit Against Unit -------------------------------------------------- Yongnam Holdings Limited announced on December 2, 2003, and in its follow-up announcement dated January 5, 2004, that one of its subsidiaries, Yongnam Malaysia, was faced with legal actions commenced by certain of its trade creditors (the Malaysian Trade Creditors), of which the following have filed winding-up petitions against Yongnam Malaysia: a. CH Yodoform Sdn Bhd (Claim for RM 722,589.55); b. All Pak Industries Sdn Bhd (Claim for RM 491,643.31); c. Danamin Trade & Services Sdn Bhd (Claim for RM 113,818.66); d. Industrial Hardware Supply Sdn Bhd (Claim for RM 142,556.27); e. Sunsing Importer & Exporter Sdn Bhd (Claim for RM 37,853.30). Yongnam Malaysia has been in negotiations with these creditors and has succeeded in securing the agreement of the following creditors to postpone the hearing of their winding-up petitions, pending further progress of the proposed bilateral agreements. The new dates for the hearing of the winding-up petitions are: a. CH Yodoform Sdn Bhd - 14 April 2004; b. All Pak Industries Sdn Bhd - 29 March 2004; c. Industrial Hardware Supply Sdn Bhd - 23 April 2004; d. Sunsing Importer & Exporter Sdn Bhd - 19 March 2004. In addition to the above, another creditor, European Profiles Marketing Sdn Bhd has filed a winding-up petition for the outstanding amount of RM 10,880.24. Hearing of this petition is scheduled for 17 February 2004. Yongnam Malaysia is initiating negotiations with the creditor to accept the bilateral agreements. Pursuant to successful negotiations, Danamin Trade & Services Sdn Bhd has agreed to withdraw its winding-up petition. Yongnam Malaysia is continuing its efforts to negotiate with all of its other creditors to accept the proposed bilateral agreement as settlement of amounts owing to them. Yongnam Malaysia will also continue to negotiate with the creditors who have filed winding-up petitions to continue to hold their hands until a satisfactory outcome on the proposed bilateral agreement can be reached. Proposed Bilateral Settlement With a view to avoiding further claims being made against Yongnam Malaysia or further writs of seizure and sale being effected against Yongnam Malaysia, the Group is proposing to use its best efforts to settle the debts owed by the Malaysian Trade Creditors by entering into bilateral settlements (the Malaysian Settlement Agreements) with all or some of the Malaysian Trade Creditors. As announced on 20 November 2003, such settlement is contemplated to be made by way of the issue of new Shares (the Malaysian Shares) at an issue price of S$0.10 per Share. It is anticipated that a condition of the proposed Malaysian Settlement Agreements, amongst others, would be a stay of all present, pending, contingent or fresh suits, actions or proceedings against Yongnam Malaysia, including but not limited to winding up proceedings, judicial management proceedings, arbitrations, appointment of a receiver and/or manager or the enforcement or execution against or recovery of any assets of Yongnam Malaysia or monies due to Yongnam Malaysia (including garnishee proceedings), by the relevant Malaysian Trade Creditors. As mentioned in the announcement of 20 November 2003, the Malaysian Settlement Agreements are subject to various approvals being obtained, details of which can be found in the announcement of 20 November 2003. CAVEAT It should be noted that the aforementioned Malaysian Settlement Agreements are subject to various approvals being obtained. Such approvals are beyond the control of the Company and there is no assurance that all such approvals will be granted by the relevant authorities and that the Group will be successful in entering into the Malaysian Settlement Agreements. Further, negotiation with the Malaysian Trade Creditors may take some time (during which additional claims may be filed and additional writs of seizure and sale effected against Yongnam Malaysia) and may not necessarily be successful. In the event that any Malaysian Trade Creditor(s) elects to proceed with its claim against Yongnam Malaysia and Yongnam Malaysia is not able to reach settlement with such Malaysian Trade Creditor(s), Yongnam Malaysia may be compulsorily wound-up. The Directors are of the opinion that such an event would not have a material impact on the Group as the Group's principal operations are in Singapore, Hong Kong and Thailand. Accordingly, holders of securities in the Company and investors are advised by the Board to exercise caution in their dealings in the securities of the Company. Further announcements will be made by the Company as and when appropriate. ZEPETA CO.: Issues Dividend Notice ---------------------------------- Zepeta Co. Pte Ltd. issued a notice of first and final dividend as follows: Address of Registered Office: Formerly of 1 Goldhill Plaza #01- 31, Singapore 308899. Court: Supreme Court, Singapore. Number of Matter: Companies Winding Up No. 240 of 1995. Amount Per Centum: 68.5%. First and Final or otherwise: First & Final Dividend. When Payable: 20th January 2004. Where Payable: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118. Dated: 30th January 2004. TOH HWEE LIAN Assistant Official Receiver. =============== T H A I L A N D =============== DATAMAT PUBLIC: Submits Revised Q3 Financial Statement ---------------------------------------------------- Datamat Public Company Limited posted changes in its third quarter financial statements ended September 30, 2003, with the auditor's note dated January 28, 2004: The consolidated financial statements of the Company's subsidiaries show a lower net profit, equity in undistributed net profit and investments in subsidiaries of Baht 5843.77, or 0.00% of total revenue, 0.02% of equity in undistributed net profit and 0.00% of investments in subsidiaries. The Company's auditor considered that such difference had no material effects to the consolidated financial statements and the Company's financial statements. There are also differences derived from the reclassification of accounts which had no material effects to the net assets and net profit: accounts payable decreased and other payables decreased with the same amount, and the offset of total income and total expenses with the same amount. Wiwat Avasiriphongs Director TONGKAH HARBOUR: Unveils Capital Increase ----------------------------------------- Tongkah Harbour Berhad announced that the capital increase from the Company's private placements in November and December is being used for construction of a condominium (Bt10.6 million), repayment of a long-term loan (Bt7.2 million) and repayment of a short-term loan (Bt14.8 million). ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., 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 ***