/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/040730.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, July 30, 2004, Vol. 7, No. 150 Headlines A U S T R A L I A GYMPIE GOLD: Releases Outcome of Adjourned Creditors Meeting WOODSIDE PETROLEUM: CEO Heads to East Timor This Week C H I N A & H O N G K O N G 401 HOLDINGS: Unveils Directors' Resignations CHINA AIR: Enters Winding Up Proceedings JINHUI HOLDINGS: Unit Sells Two Ships After Losses NEW SPRING: FY04 Net Loss Widens to HK$18.8M SHUI WING: Winding Up Hearing Set August 25 SUPER GLORY: SFC Prosecutes Firm for Market Manipulation I N D O N E S I A INDOFOOD SUKSES: Pefindo Revises Ratings To AA MERPATI NUSANTARA: To Launch Rights Issue PERTAMINA: Commissioners Replacement Planned J A P A N ALL NIPPON: Signs Contract For 50 7E7 Jets MITSUBISHI MOTORS: S&P Gives Negative Outlook MITSUBISHI MOTORS: Holds Third Business Ethics Committee Meeting UFJ HOLDINGS: Admits To Falsifying Documents UFJ HOLDINGS: Appeals Tokyo Court Ruling On Mitsubishi Merger UFJ HOLDINGS: Management Integration with MTFG Unchanged UFJ HOLDINGS: Submits Business Improvement Plans To FSA K O R E A HYNIX SEMICONDUCTOR: Becomes Second-Largest Memory Chipmaker KOOKMIN BANK: Expects Better 2H Performance LG CARD: Creditors OK Business Reorganization Plan SSANGYONG MOTOR: Not Moving Production Facilities to China M A L A Y S I A AKTIF LIFESTYLE: Discloses Restructuring Update BOUSTEAD HOLDINGS: Issues Additional 172,000 Ordinary Shares CHG INDUSTRIES: Securities Suspension Pending GULA PERAK: Grants Listing of 10,800 Ordinary Shares KILANG PAPAN: MITI OKs Revised Restructuring Scheme KUMPULAN BELTON: Releases Default Status Update LANKHORST BERHAD: Unveils Private Placement Proposal MANGIUM INDUSTRIES: Unit Issues Default in Payments MANGIUM INDUSTRIES: Posts Monthly Production Figure for June METACORP BERHAD: Seeks Shareholder's Mandate Approval MTD CAPITAL: Issues Additional 39,000 Ordinary Shares MWE HOLDINGS: Releases Notice of Director's Interests OSK HOLDINGS: Releases Notice of Shares Buy Back PAN PACIFIC: Issues Restructuring Scheme Update PARK MAY: Proposes Restructuring Scheme RNC CORPORATION: Extends Moratorium Period TANJONG PUBLIC: Receives Notification on Listing Requirements P H I L I P P I N E S ABS-CBN BROADCASTING: To Pay 64-Centavo Cash Dividend Per Share ABS-CBN BROADCASTING: Issues News Article Clarification BENPRES HOLDINGS: Clarifies News Article on Philippine Star NATIONAL POWER: Job Cuts Could Generate PHP250Mln In Savings NATIONAL POWER: 14 SPUGs Open For Privatization PHILIPPINE NATIONAL: First Semester Growth Performance On Track PRYCE CORPORATION: Furnishes PSE With Court Order Copy SEMIRARA MINING: Clarifies News Article S I N G A P O R E CHARME LUNETTES: Court Issues Winding Up Order DAR HARNQ: Creditors To Submit Claims on August 23 DAVIN INDUSTRIES: Winding Up Order Made KIN YUEN: Releases Winding Up Order Notice REED GROUP: Announces Annual General Meeting Result T H A I L A N D BANGKOK MASS: Not For Sale, CEO Insists KRUNG THAI: Issues Explanation on Increased NPLs NFC FERTILIZER: Releases Opinion of the Business on Tender Offer THAI PETROCHEMICAL: Revised Rehab Plan Faces Problems Anew * Large Companies With Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= GYMPIE GOLD: Releases Outcome of Adjourned Creditors Meeting ------------------------------------------------------------ In a company press release, Gympie Gold Ltd. (GGL) said the adjourned second creditors meeting continued in Sydney on Wednesday. At this meeting and in the absence of any other suitable alternative, the creditors of GGL, Southland Mining Limited (SM), Southland Coal Pty Limited (SC) and Gympie Eldorado Gold Mines Pty Limited (GEGM) resolved that each of the companies be wound up, and that Murray Smith and Joseph Hayes be appointed as the Liquidators of each company. The creditors also appointed members of a committee of inspection for each of GGL, GEGM and SC. Further developments regarding the realization of the companies' assets by the Receivers and Managers will be advised in due course. Meanwhile, effective 1 July 2004, the Corporate Recovery division of KPMG separated to form an independent entity, McGrathNicol+Partners. Please note the revised contact details. Creditors who wish to discuss any aspects of the above should please contact Nick Lawry or Chania Rodwell of our staff on (02) 9338 2635 or (02) 9338 2657. CONTACT: Gympie Gold Ltd. Suite 303 , 3 Spring Street, SYDNEY , NSW, AUSTRALIA, 2000 Head Office Telephone: 02 8249 4479 Head Office Fax: 02 8249 4001 Website: http://www.gympiegold.com.au/ WOODSIDE PETROLEUM: CEO Heads to East Timor This Week ----------------------------------------------------- Don Voelte, Woodside Petroleum Ltd. (WPL) chief executive is set to visit East Timor this week to give the nation encouragement to approve the stalled pact for sharing revenue of the $6.6 billion Greater Sunrise undersea gas project, according to the Advertiser. Woodside said the pact should be ratified by the end of this year to allow key timetables, including first commercial production of liquefied natural gas (LNG), to be met. "We need ratification by the end of the year for Sunrise to maintain momentum," a Woodside spokesman said. "Without it Sunrise will stall." Woodside plans to move the said project into a $60 million engineering and design phase, but they would not want to commit shareholder funds of that magnitude while the Sunrise pact is still unclear. CONTACT: Woodside Petroleum Ltd. Woodside Plaza , 240 St Georges Terrace PERTH, AUSTRALIA, 6000 Head Office Telephone: (08) 9348 4000 Head Office Fax: (08) 9214 2777 Website: http://www.woodside.com.au/ ============================== C H I N A & H O N G K O N G ============================== 401 HOLDINGS: Unveils Directors' Resignations --------------------------------------------- The Board of Directors of 401 Holdings Limited announced that Mr. Leung Tze Hang David (Mr. Leung) and Mr. Ha Kee Choy Eugene (Mr. Ha) resigned as Managing Director and Executive Director of the Company respectively with effect from 27th July 2004 due to personal reasons. Mr. Wan Ngar Yin David (Mr. Wan), Mr. Yeung Kong Dominic (Mr. Yeung) and Mr. Shiu Shu Ming (Mr. Shiu) resigned as independent non-executive directors of the Company with effect from 28th July 2004. Mr. Wan resigned for personal reasons while Mr. Yeung resigned as a result of his decision to devote more time on his personal business. The resignation of Mr. Shiu is due to his busy engagement in other business ventures. Mr. Leung, Mr. Ha, Mr. Wan, Mr. Yeung and Mr. Shiu (collectively the Resigning Directors) and the Board confirmed that there is no mutual disagreement between them. The Resigning Directors also confirmed that there is no other matter relating to their resignation that needs to be brought to the attention of the shareholders of the Company. As at the date hereof, the executive directors of the Company are Mr. Wong Chong Kwong, Derek, Mr. Po Kam Hi, John, Mr. Lau Cheuk Hung, Terence, Mr. Au-Yeung Yok Cho and the non-executive director of the Company is Mr. Wu Chi Lok. On 21 July 2004, a winding-up petition and summons for the appointment of provisional liquidators were filed against 401 Holdings Limited by China Units Enterprises Limited, TCR-AP reported in its 148th edition. CONTACT: 401 Holdings Limited Shun Tak Centre, 200 Connaught Road Central, Hong Kong Tel: +852 2363 8301 Tel: +852 2363 8192 CHINA AIR: Enters Winding Up Proceedings ---------------------------------------- Notice is hereby given that a petition for the winding up of China Air International Travel Service (HK) Limited by the High Court of Hong Kong was on the 19 July 2004 presented to the said Court by Tsui Lai San Teresa of Room 2114, Shing Yat House, Kwai Shing East Estate, New Territories, Hong Kong. The said petition is directed to be heard before the Court at 9:30 a.m. on 25 August 2004. Any creditor or contributory of the said company desirous to support or oppose the making of an order on the said petition may appear at the time of hearing by himself or his counsel for that purpose. A copy of the petition will be furnished to any creditor or contributory of the said company requiring the same by the undersigned on payment of the regulated charge for the same. Ms. ADA CHAU MING WAI For Director of Legal Aid 34th Floor, Hopewell Centre 183 Queen's Road East, Wanchai Hong Kong Note: Any person who intends to appear at the hearing of the said petition must serve on or send by post to the above named, notice in writing of his intention to do so. The Notice must state the name and address of the person, or if a firm, the name and address of the firm, and must be signed by the person or firm or his or their Solicitor (if any) and must be served, or if posted, must be sent by post in sufficient time to reach the above named not later than six o'clock in the afternoon of the 24th day of August 2004. JINHUI HOLDINGS: Unit Sells Two Ships After Losses -------------------------------------------------- Jinhui Holdings Co. Limited announced that its unit Jinhui Shipping and Transportation has agreed to sell two vessels following losses of about US$70 million (HK$546 million) from forward freight agreements, the Standard reports. Jinhui Shipping will sell Jin Tai and Jin Kang for a total of US$56.5 million by the end of this month, which will raise the unit's pro forma first-quarter profits by 56.5 percent to US$42.7 million. Jinhui Holdings earlier estimated its shipping unit lost US$60 million to US$70 million in forward freight agreements as the rates of the dry bulk shipping market dropped since February. SHK Research analyst Oscar Choi said the disposal gain would not be able to cover the losses resulting from the forward freight agreements. CONTACT: Jinhui Holdings Co. Limited 1-6 Connaught Road West Hong Kong Tel: +852 2545 0951 Tel: +852 2541 9794 NEW SPRING: FY04 Net Loss Widens to HK$18.8M -------------------------------------------- New Spring Holdings Limited announced its audited consolidated results for the year ended 31 March 2004 together with the comparative figures for the corresponding period in last year as follows: Currency: HKD Auditors' Report: Unqualified (Audited) (Audited) Last Current Corresponding Period Period from 01/04/2003 from 01/04/2002 to 31/03/2004 to 31/03/2003 Note ('000) ('000) Turnover : 146,239 156,042 Profit/(Loss) from Operations : (7,929) (556) Finance cost : (5,799) (3,474) Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : (18,880) (5,384) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.105) (0.03) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (18,880) (5,384) Final Dividend : NIL NIL per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A The calculation of basic loss per share (2003: loss per share) is based on the Group's loss attributable to shareholders of HK$18,880,000 (2003: loss of HK$5,384,000) and of 180,000,000 shares (2003: 180,000,000 shares) in issue during the year. SHUI WING: Winding Up Hearing Set August 25 ------------------------------------------- Notice is hereby given that a petition for the winding up of Shui Wing Construction Engineering Limited by the High Court of Hong Kong was on the 19th day of July 2004 presented to the said Court by Lo Po Yu of Room 1121, Kai Lok House, Kai Yip Estate, Kowloon Bay, Kowloon, Hong Kong. The said Petition is directed to be heard before the Court at 9:30 am on the 25th day of August 2004. Any creditor or contributory of the said company desirous to support or oppose the making of an order on the said petition may appear at the time of hearing by himself or his counsel for that purpose. A copy of the petition will be furnished to any creditor or contributory of the said company requiring the same by the undersigned on payment of the regulated charge for the same. Ms. ADA CHAU MING WAI For Director of Legal Aid 34th Floor, Hopewell Centre 183 Queen's Road East, Wanchai Hong Kong Note: Any person who intends to appear at the hearing of the said petition must serve on or send by post to the above named, notice in writing of his intention so to do. The Notice must state the name and address of the person, or if a firm or his or their Solicitor (if any) and must be served or if posted, must be sent by post in sufficient time to reach the above named not later than six o'clock in the afternoon of the 24th day of August 2004. SUPER GLORY: SFC Prosecutes Firm for Market Manipulation -------------------------------------------------------- The Securities and Futures Commission (SFC) successfully prosecuted Han Sze Chao Richard & Super Glory International Ltd for intentionally creating a false market in the shares of Fortuna International Holdings Limited, the SFC announced on its Web site. Mr. Han pleaded guilty on behalf of Super Glory and himself before Mr. Anthony Yuen, a Magistrate at Eastern Magistracy. They were fined a total of $50,000 and ordered to pay investigation costs of $29,276 to the SFC. In passing sentence, His worship Mr. Yuen noted that market manipulation was a very serious offence and a custodial sentence would normally be imposed. In this instance he elected to fine Mr. Han and Super Glory having taken into account the guilty pleas, the mitigation that Han would face SFC's disciplinary action with a real possibility of losing his license (Note 1), and that Mr. Han co-operated in the SFC's investigation. The SFC investigation found that Mr. Han, who had an interest in a large number of Fortuna shares, had on numerous occasions between January and May 2002 caused small and/or single board lots to be placed to stabilize and/or peg the price of this stock just before the closing time of the market. This aggressive strategy had effectively pegged the price of Fortuna shares at around $0.30 over an extended period. An SFC spokesman said: "We welcome the court's view that market manipulation is a serious offence. Participating in or facilitating market manipulation by SFC licensees is unacceptable. Those involved can expect stern disciplinary action." ================= I N D O N E S I A ================= INDOFOOD SUKSES: Pefindo Revises Ratings To AA ---------------------------------------------- Pefindo revised the ratings of PT Indofood Sukses Makmur Tbk. (INDF or the Company) as well as its Bond I/2000 of IDR1 trillion and Bond II/2003 of IDR1.5 trillion to "idAA" from "idAA+" and at the same time assigned a rating of "idAA" to its proposed Bond III/2004 of IDR1 trillion that will be fully used to refinance its existing bank loans, of which 75% were USD loans. The ratings revision is based on the Company's weakening profitability and financial coverage ratios, however, the favorable ratings are supported by INDF's superior position in food industry, highly diversified business portfolio and high vertically-integrated operations. INDF has nine business lines namely noodles, flour, edible oils and fats (EOF), plantation, snack foods, baby foods, food seasonings, distribution, and packaging, but the four main divisions (noodles, flour, EOF and distribution) contributed 95.0% of the total Company's revenue in 2003. As to date, INDF's major shareholder is CAB Holdings Ltd. with 51.53% ownership. CONTACT: Gedung Ariobimo Sentral, 12th Fl., Jl. H.R. Rasuna Said X-2 Kav Jakarta 12950, Indonesia Phone: +62-21-522-8822 Fax: +62-021-522-6014 MERPATI NUSANTARA: To Launch Rights Issue ----------------------------------------- In order to raise fresh funds, Merpati Nusantara Airlines plans to issue around 49 percent of its shares to foreign investors or 51 percent to local investors, reports Asia Pulse. The state-owned carrier expects the rights issue to generate around IDR600 billion (US$66.66 million), which will be used to refinance debts and purchase new aircraft. Merpati President Hotashi Nababan declared that the rights issue would kick off upon parliament's approval. He added that the firm had already invited applications for financial advisers and will start the tender for strategic investors later. CONTACT: Jl. Angkasa Blok B-15 Kav. 2-3 Jakarta 10720 - Indonesia Tel: (021) 6548888 Fax: (021) 6540620 E-mail: marketing@merpati.co.id PERTAMINA: Commissioners Replacement Planned -------------------------------------------- The Indonesian government will soon replace PT Pertamina's (PTM.YY) commissioners, Dow Jones Newswires reports, citing Minister of State Enterprises Laksama Sukardi. The officials, who were appointed in October following Pertamina's conversion into a limited liability firm, will soon vacate their seats as they have already "completed their task of transforming the company from an unclear entity into a corporation." Speculations abound that the former head of the defunct Indonesian Bank Restructuring Agency (IBRA), Edwin Gerungan, will likely take over Mr. Laksamana as Pertamina's president commissioner. Last month, Petromine Watch Indonesia (PWI) Chairman Pontas Limbong urged Mr. Laksama to resign from Pertamina because of a conflict of interest between his post at the state oil firm and his position as minister for state enterprise. CONTACT: Jalan Merdeka Timur No. 1 A Jakarta 10110 Tel: (62)(21)3815111 Fax: 3846865/ 3843882 www.pertamina.com ========= J A P A N ========= ALL NIPPON: Signs Contract For 50 7E7 Jets ------------------------------------------ All Nippon Airways (ANA) has signed a contract with US-based Boeing for 50 7E7 airplanes valued at US$6 billion, reports The Associated Press. The order consists of 30 short-range 7E7-3 models and 20 long- range 7E7-8 models. Boeing will deliver the first six 7E7-8s in April 2008 and another six in 2009. ANA will receive its first 7E7-3 jet in 2010. CONTACT: All Nippon Airways Co. Ltd. 5-10 Hanedakuko 3-Chome Ohta-Ku 144-0041, Tokyo 100-6027 JAPAN Tel: +81 3 5756 5665/+81 3 5756 5679 www.anaskyweb.com MITSUBISHI MOTORS: S&P Gives Negative Outlook --------------------------------------------- Standard & Poor's Ratings Services on Thursday raised its long- term corporate credit rating on Mitsubishi Motors Corp. (MMC) to 'CCC+' from 'SD', and its rating on the company's senior unsecured bonds to 'B-' from 'CCC+'. The outlook on the corporate credit rating is negative. "The upgrade of MMC reflects the lower possibility of near-term default by the company following the recent completion of a capital enhancement," said Chizuko Satsukawa, a credit analyst at Standard & Poor's. On June 28, 2004, the corporate credit rating on MMC was lowered to 'SD' after the company completed a transaction tantamount to a debt-for-equity swap on its bank loans. On July 15, 2004, the company issued common and preferred shares to Phoenix Capital and J.P. Morgan, completing a capital enhancement totaling �496 billion, slightly exceeding the planned amount. MMC expects its interest-bearing debt to have fallen to about �737 billion at the end of June 2004, down by about �325 billion from the end of March 2004. Although Standard & Poor's believes the capital enhancement has lowered the possibility of immediate default by the company, it is not optimistic about MMC's viability, given the damage to the carmaker's brand image and plummeting domestic sales. The company's vehicle sales in Japan (including minivehicles) fell by nearly 50% in June 2004 compared with June 2003, following a decrease of about 40% in May 2004. In the U.S., its sales performance is also deteriorating: light vehicle sales decreased by about 50% in June 2004, compared with a year earlier. Given the challenge of restoring consumer confidence in vehicle safety, plus increasingly fierce competition in key global vehicle markets, it remains unclear whether pending operational and financial restructuring measures will be sufficient to ensure MMC's survival. The rating on MMC's senior unsecured debt is higher than that on the issuer by one notch, reflecting the better protection for bondholders than bank lenders, given the likelihood of support by key creditor banks through loan waivers if the company were to again face financial distress (see Standard & Poor's report "Rating Implications of Loan Waivers for Japanese Corporates" published on Sept. 23, 2003.) This rating was initiated by Standard & Poor's and may be based solely on publicly available information and without the participation of the issuer's management. Standard & Poor's has used information from sources believed to be reliable, but does not guarantee the accuracy, adequacy or completeness of any information used. Ratings are statements of opinion, not statements of fact or recommendations to buy, hold, or sell any securities. Other analytic services performed by Standard & Poor's may be based on information that was not available for this rating and this report. A Japanese-language version of this media release is available via Standard & Poor's CreditWire Japan on Bloomberg Professional at SPCJ . Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. CONTACT: Mitsubishi Motors Corporation 2-16-4 Konan, Minato-ku Tokyo, 108-8410, Japan Phone: +81-3-6719-2111 Fax: +81-3-6719-0014 http://www.mitsubishi-motors.co.jp MITSUBISHI MOTORS: Holds Third Business Ethics Committee Meeting ---------------------------------------------------------------- The Business Ethics Committee, an advisory body for the Mitsubishi Motors board of directors, met for the third time on July 28, 2004. The third meeting, attended by all committee members, was held at Mitsubishi Motors' Okazaki plant. After observing development (design, engineering, testing), production preparations, and production processes, the committee members joined the first business ethics seminar at the plant to see firsthand the company's efforts to promote compliance on the factory floor. The committee members also had the chance to talk with the Women's Evaluation Team, a special group of female employees formed to include the opinion of women in car manufacturing. The committee members then visited the Quality Affairs Office to check the documents involved and process conducted from when product information reports are drawn up to when the company decides to submit a recall. Discussions were also held with employees involved in investigating the Company's recall problems. Some comments offered by committee members today include: Even though the company has decided to close the factory, I felt morale on the factory floor seemed to be still high and the factory is competent as ever. Industrial housekeeping seems to be fully implemented too. Business ethics start in the workplace. Looking at the data of the percentage of good products yielded by the manufacturing process the first time through, it is worth noting that organization on the factory floor has not eroded. I can see that development systems are gradually improving. But I think there wasn't enough invested in testing and developing in the past and the company needs to continue its improvements. The fact that female employees proactively offer their opinion is a very positive step towards ensuring total compliance throughout the company. But I still feel that executive positions for females are far too few. It is important to include the opinions and sense of female employees to come up with unique designs and concepts. I hope the company can gather these opinions together and act on them more to give female employees a chance to show some leadership and train other females working below them. I was able to see how the process for determining recalls is done systematically using electronic data for product information reports and technical letters. But I think you should make the process as simple as possible. Also, you should revise the process to include the opinion of departments other than the Quality Affairs Office. I was able to get a good understanding of the enormous amount of work being done in the investigations related to repair directives. I made a strong point to not stop here and continue the investigations. The next committee meeting is scheduled for August following a report on the company's extended investigations. Noboru Matsuda Business Ethics Committee Chairman UFJ HOLDINGS: Admits To Falsifying Documents -------------------------------------------- UFJ Holdings Inc. has admitted on Wednesday that the group systematically concealed data about the business conditions of corporate borrowers and submitted forged documents to the Financial Services Agency (FSA), Japan Today reveals. In a news conference, UFJ Bank president Takamune Okihara disclosed that the fake reports were submitted with the approval of the firm's board members in charge of the matter and the section chiefs responsible for evaluating the loan eligibility of the borrowers. CONTACT: UFJ Holdings, Inc. 5-6, Fushimimachi 3-chome, Chuo-ku, Osaka-shi, Osaka 541-0044, Japan www.ufj.co.jp UFJ HOLDINGS: Appeals Tokyo Court Ruling On Mitsubishi Merger ------------------------------------------------------------- Struggling UFJ Holdings Inc. is appealing a court ruling that halted its merger negotiations with Mitsubishi Tokyo Financial Group (MTFG), Japan Times reports. On Tuesday, the Tokyo District Court ordered UFJ Holdings to suspend the sale of its trust banking business to MTFG and upheld the exclusive negotiation rights of Sumitomo Trust & Banking Co., which agreed to acquire UFJ's trust bank unit prior to UFJ and MTFG's merger decision. UFJ Holdings President Ryosuke Tamakoshi declared in a news conference that the firm has no intention to pursue the merger talks without its trust-banking unit. Likewise, it ruled out plans to pay compensation to Sumitomo Trust for a quick settlement of the dispute. UFJ expects the recent court ruling to delay the merger plan, which would form the world's largest banking group with JPY190 trillion assets, exceeding Mizuho Financial Group Inc.'s JPY135 trillion. UFJ HOLDINGS: Management Integration with MTFG Unchanged -------------------------------------------------------- UFJ Holdings, Inc. announced in a press release that it had signed a memorandum of understanding with Mitsubishi Tokyo Financial Group, Inc. (MTFG) on July 16, 2004, regarding a possible management integration, and the two groups have been making discussions aiming to reach a basic agreement by the end of this month. In response to the decision by Tokyo District Court to grant Sumitomo Trust & Banking Co. Ltd a preliminary injunction, which was made yesterday, we filed an objection against the injunction with the court today. Although our discussions with MTFG must be in compliance with the injunction, we have not changed our basic stance to aim at a management integration with MTFG as an entire group. UFJ HOLDINGS: Submits Business Improvement Plans To FSA ------------------------------------------------------- UFJ Holdings, Inc. and UFJ Bank Limited settled on concrete measures to aggressively reinforce their corporate governance systems in response to the administrative actions announced by the Financial Services Agency (FSA) on June 18, 2004. In accordance with these measures, UFJ submitted business improvement plans to the FSA, responding to the administrative actions as outlined by the FSA regarding: -UFJ response to the FSA's inspections -Stance on loans to small- and medium-sized enterprises (SMEs) -Large difference between the revised financial forecast and the financial results UFJ intends to submit another business improvement plan, in response to the additional administrative action, announced by the FSA, regarding "The follow-up of the capital injected bank (the so-called '30% rule')", aiming to submit this report during the first half of September 2004. UFJ needs to carefully consider the impact of (1) the outlook of business integration with Mitsubishi Tokyo Financial Group, Inc., and (2) UFJ's aggressive actions toward the final resolution of its problem loans, in preparing this plan. (1) Executive Summary As detailed below, in terms of its response to the FSA's inspections, UFJ came to recognize, based on the results of an investigation and evaluation conducted by a third party, that there were deeds which are considered to be evasions of inspections. UFJ deeply regrets that its investigations of these issues were inadequate and inappropriate judgment was exercised. UFJ sincerely accepts the indications given by the FSA. In addition, UFJ apologizes that the deeds, which were deemed to be evasions of inspections, substantially hampered efficient implementation of the inspections, and obstructed the regulatory purposes such as securing trust and order, protecting depositors, and maintaining smooth finance. UFJ regrets and sincerely apologizes for this and the concern amongst its customers and shareholders. It makes a commitment to reform its corporate governance framework and internal control systems, such as credit risk management, through the completion of the improvement plans. The top management will lead various activities to improve management, aiming at restoring confidence in UFJ as quickly as possible. (2) Concrete business improvement measures "The problems indicated in the administrative action", "UFJ's current understanding of the problems", and "the measures to prevent recurrence" for the respective business improvement plans are as follows: (I. Business improvement plan regarding responses to the FSA's inspections) (1) Problems indicated in the administrative action The administrative action indicated that, in the course of the FSA's inspections to UFJ Bank, the bank conducted a number of inappropriate deeds as follows, including those considered to be evasions of inspections: 1) Concealment of documents -Documents were moved and concealed in rooms separated from regular working spaces. 2) Concealment of data -Important data was hidden by moving it to the server of an already-abolished section and therefore made virtually undetectable. 3) Systematic approach of (1) and (2) -The deeds described in (1) and (2) were systematically conducted prior to the FSA's inspections under instructions given, including instructions given at a series of internal meetings. 4) False response to inspectors' inquiry -In response to inspectors' inquiry whether or not there existed separated rooms from regular working spaces in order to store documents, a false reply was given that such rooms did not exist. 5) Destruction of documents -Some documents were torn up in the presence of inspectors. 6) Submission of forged minutes of meetings to inspectors -The bank forged minutes of meetings in which executives evaluated large borrowers and submitted them to inspectors during the inspections as authentic minutes. 7) Submission of forged documents to inspectors -After receiving inspectors' request for documents concerning a specific borrower, the bank forged related documents and submitted them to inspectors during the inspections as authentic documents. 8) Management's involvement in (6) and (7) -The deeds described in (6) and (7) were conducted in a systematic manner with management involvement. 9) Concealing information and giving false explanations to inspectors -The bank gave inspectors false explanations on business climates and financial conditions of some borrowers, as it concealed documents and data. (2) UFJ's current understanding of the problems UFJ determined that an investigation conducted by a third party was needed to take appropriate measures to prevent recurrence, since there were substantial differences between the indications shown in the administrative action and UFJ's understanding. In order to ensure fairness, the investigation was assigned to an investigation committee headed by Mr. Kunihisa Hama (attorney at law, former Administrative Vice Minister of the Ministry of Justice, former Head of the Tokyo High Public Prosecutors Office), and a committee consisting of attorneys at law, who were not counsel for UFJ. In addition, the examination sessions were conducted excluding UFJ personnel. Although UFJ made a statement on June 18 that "the actions could have been construed as violations of laws and ordinances, although they were not so intended", UFJ currently has a totally different understanding, based on the investigation results, that there were deeds which were deemed to be evasions of inspections as follows: -In terms of the "concealment of documents and data", the "false reply", and the "destruction of documents", UFJ believes it is reasonable to recognize that certain sections systematically conducted deeds with the intention to evade inspections. -In terms of the "forgery of minutes and documents", UFJ believes it is reasonable to recognize that certain sections systematically forged minutes and documents, as pointed out in the administrative order, with the intention to evade inspections. -In terms of the "concealment of information and false explanations to inspectors", UFJ recognizes that false explanations on business climates and financial conditions of some borrowers were made, as pointed out in the administrative order, and that some of these responses were conducted systematically. (3) Measures to prevent recurrence UFJ Bank will take the following measures: 1) Reconstruction of corporate governance framework centering on external directors -More than one non-executive director, independent from UFJ, and possessing the necessary expertise, will be appointed as non- executive directors and will be in charge of supervising the management. -The board of directors will appropriately monitor management and make important decisions, including strengthening involvement in extension of credit for large borrowers. 2) Aggressive reorganization of the Audit & Compliance Committee -Newly appointed external directors will become the chairperson and other members of this committee. -In addition, in order to rigidly ensure its independence, the committee will entirely consist of external members, including the chairperson, other external directors, and the external specialists, who will be appointed by the chairperson. -All authority to supervise and direct the internal auditing divisions will be given to the committee. -The committee, independent from management, will report on the status of UFJ's risk management, compliance, and internal auditing to the board of directors as well as to the FSA. 3) Reinforcement of compliance system -The President & CEO, executive directors, and executive officers will submit "oaths", with respect to compliance, to the Audit and Compliance Committee. -The President & CEO will govern the Compliance Department and lead compliance activities. -The bank will heighten employees' awareness of compliance and develop its monitoring function through a "Compliance Hotline". 4) Realignment of organization to strengthen internal control -The bank will establish the Internal Audit Planning Office, which will govern and supervise the Internal Audit Department as the executive office for the Audit and Compliance Committee. This department will be in charge of internal audit planning. -The Internal Audit Department will be reinforced, aiming to strengthen its auditing functions at the sections in the headquarters and to develop auditing systems further, centering on assessment of assets. -The bank has established the Financial Accounting Department and the Credit Risk Management Committee in order to reinforce its internal control framework including credit risk management. 5) Appropriate control on conduct related to inspections -The Compliance Department, responsible for inspections, will strengthen monitoring of conduct with regard to inspections and heighten the awareness of the appropriate stance in relation to inspections. -The chairman of the Audit & Compliance Committee will have a meeting with inspectors at the beginning of inspections, aiming to improve UFJ's conduct related to inspections. (II. Business improvement plan regarding loans to small- and medium-size enterprises (SMEs)) (1) Major problems indicated in the administrative action The administrative action indicated that, UFJ's procedures to monitor and verify SME lending was deemed to be inadequate by the FSA, and that the FSA deemed this to be "a case where a bank is deemed not to properly comply with the plan to revitalize management", which was stated in the "administrative treatment related to follow up of the capital injected banks". (2) UFJ's current understanding of the problems At UFJ, the procedure to manage SME lending, an important item in the plan to revitalize management has not adequately functioned. Specifically, the rules for registering customer information (industries, capital, number of employees etc.) for segmenting purposes and extraction of individual loans for businesses in accord with definitions were not adequate. Moreover, examination of accuracy in segmentation and registration was inadequate. As a result, the bank counted some loans to large corporations as lending to SMEs, and missed some SME lending. In addition, since there were inadequacies in the measures taken by the headquarters, the instructions given to branches, and the framework to supervise and monitor branches, the bank reported a certain amount of short-term lending at the fiscal year end, which did not necessarily fit the purpose of Law No.5 relating to Emergency Measures for Early Reconstruction of Financial Systems (Early Reconstruction Law). The revised actual figures, which UFJ is now examining, will be announced soon after these are finalized, and will be included in the progress report on the plan to revitalize management. (3) Measures to prevent recurrence Based on the current understanding stated above, UFJ will develop and reinforce its framework to manage and promote SME lending, in accordance with the purpose of the Early Reconstruction Law. 1) Improvement in organizational structure The Group Planning Department of UFJ Holdings and the Corporate Planning Department of UFJ Bank will take responsibility for reinforcing UFJ's internal control systems related to SME lending, reconsidering the inadequate efforts in the past. -At UFJ Bank, the Corporate Planning Department will be in charge of monitoring progress in all related sections. -The bank aims to strengthen the secondary checking functions. The Internal Audit Department will audit headquarters and branches to examine implementation of the measures to be taken, and will require the sections to correct inappropriate behaviors. 2) Reinforcement of database management UFJ will increase the accuracy of databases through reforming its database management, including revision of rules for registration and maintenance of customer information (industries, capital, number of employees etc.). At the same time, it will develop an appropriate reporting framework. -UFJ Bank will improve the accuracy of databases by establishing rules for initial registration and periodic revision of customer information, and for developing computer systems. -The bank will heighten employees' awareness of the importance of database management through rigid application of the rules and provision of instructions about the rules for branches. -The bank will clarify and unify the definitions and counting standards related to SME lending in order to establish systems to report accurate figures. 3) Improvement in abilities to recognize reality At UFJ Bank, branches will promote SME lending, and the headquarters will develop strategies and give instructions to the branches in a proper manner, in accordance with the objective of the Early Reconstruction Law. -The bank will again recognize the objective of the law: provision of sufficient funds in response to the financing needs of healthy SMEs. -The bank will adopt a well-balanced evaluation system for business performance, aiming at promotion of "loans which fit the objective of the law" as well as avoidance of "loans largely against the objective of the law". -The bank will prevent a recurrence of provision of loans, which do not fit the objective of the law, by monitoring short-term lending at the fiscal year end. 4) Promotion of SME lending UFJ Bank will continue promoting reform in its lending business, aiming to increase loans to SMEs. This will include aggressive promotion of "UFJ Business Loan", which is a loan product for small businesses, "Basic Mode", which is a credit assessment method for SME lending, and the "industrial credit standard", which is a credit assessment method for medium-sized companies. At the same time, it will increase its marketing force, specializing in the extension of lending to new SME customers. 5) Reinforcement of internal control At UFJ Bank, in addition to the monitoring conducted by the sections in charge of business promotion or risk management, the Internal Audit Department will examine the measures to be taken to prevent recurrence through auditing the headquarters and branches. (III. Business improvement plan regarding large difference between the revised financial forecast and the financial results) (1) Major problems indicated in the administrative action: The administrative action indicated that the FSA found a critical imperfection in UFJ's internal control framework, including inadequacy regarding appropriate procedures to manage credit risk and intersectional monitoring functions. The imperfection was demonstrated by the fact that provisions were increased by YEN500 billion, when UFJ announced its financial results. This increase was deemed necessary, as UFJ did not make a management decision to revise earnings forecasts for fiscal 2003, based on an adequate review of provisions. (2) UFJ's current understanding of the problems In considering measures to calculate provisions and the stance on reserves for large troubled borrowers, UFJ did not adequately take into account the uncertainty related to unexpected additional credit costs, which it might incur in the course of reducing the amount of problem loans under the Financial Reconstruction Law. UFJ understands that such a lack of deliberate and conservative judgment was due to the problems in its "internal control systems" including the credit risk management system and the mutual monitoring functions, and its "corporate governance systems", which should govern and supervise these systems. (3) Measures to prevent recurrence Based on this understanding, UFJ's management aims to show its solid intention toward credit risk management by taking the following measures: 1) Reinforcement of the board of directors' functions -The board of directors will strengthen its involvement in credit risk management through expanding the scope of its discussions related to write-offs, provisions, and large troubled borrowers. 2) Reinforcement of the headquarters' functions -UFJ Bank will ensure appropriateness in the process of credit risk management, such as the development, application, and examination of standards through the following measures: -It will ensure objectivity and transparency of standards by establishing the Credit Risk Management Committee, which will be composed entirely of external specialists. -It will ensure independence, appropriateness, and transparency of its financial results and disclosure by establishing the Financial Accounting Department, separating the accounting and tax planning team from the Corporate Planning Department. -It will improve accuracy in internal credit ratings and self- assessment by the establishment of an instruction team in the Credit Policy & Planning Department, which will provide instructions for branches and credit assessment departments. 3) Clarification of executive officers' responsibilities -UFJ Bank will improve credit risk management and monitoring functions of each executive officer by clarifying responsibilities of each officer, related to credit risk. 4) Development of mutual monitoring functions -In terms of the establishment and revisions of standards for write-offs and provisions, internal credit ratings and self- assessment framework, and credit risk management for large troubled borrowers, UFJ will aim at developing primary checking functions performed by executive divisions in charge of credit risk management. -The Internal Audit Department will be under the immediate control of the Audit & Compliance Committee in order to reinforce the monitoring functions of executive sections by being independent from management. -UFJ Bank will appropriately understand and examine credit risks related to each large borrower by establishing a specialized team for large borrowers in the Internal Audit Department. -The bank will improve its auditing functions through establishing the "Internal Audit Planning Office", which will be responsible for governing, supervising and planning of internal audits, under the Audit & Compliance Committee. -Collaborating with the Credit Risk Management Committee and the specialized team for large borrowers, the corporate auditors will examine the establishment and revisions of the standards for write-offs and provisions and will improve the effectiveness of auditing through timely and appropriate exchange of opinions with the Internal Audit Department and accountants. In addition, the corporate auditors will examine whether the new auditing systems function well. -From the standpoint of group management, UFJ Holdings, as the holding company, will examine the framework of corporate governance and internal controls at UFJ Bank and other subsidiaries. 3. Clarification of responsibilities In response to the series of administrative actions, UFJ clarified responsibilities of related directors and executive officers, and employees. Though UFJ had already punished the directors and executive officers before June 18, UFJ revised the punishment related to "UFJ's response to the FSA's inspections", as stated in the attachment. This was revised because UFJ came to recognize that "there were deeds which were deemed to be evasions of inspections", based on the investigation conducted by the third party. In addition, UFJ punished the employees as attached, based on its current understanding about the series of the administrative orders. Furthermore, UFJ clarified responsibilities, as stated in the attachment, in terms of its previous wrong understandings related to the administrative orders, which it announced on June 18, without conducting appropriate investigation. 4. Corporate governance in the future We would like to reiterate that the UFJ Group takes the administrative actions by FSA very seriously and is committed to deliver its Business Improvement Plan. By doing so, the UFJ Group is committed to re-establish its corporate governance and internal controls, including credit management. Disciplinary Punishment In response to the administrative orders *, UFJ already disciplinarily punished directors and executive officers on June 18, 2004 as follows: (1) The former top management of UFJ (the Presidents of UFJ Holdings, UFJ Bank and UFJ Trust Bank) resigned their positions, due to the net loss and suspension of dividend in the fiscal 2003 and the failure to meet the profit target regarding "follow-up of the capital injected bank (so-called '30% rule')". (2) The directors and executive officers, who had supervised the areas where the FSA took administrative actions on UFJ, were disciplinarily punished as follows: - Resignation -- Two senior executive officers resigned due to "inspections", "30% rule", "SME lending", and "revision". -- A representative director & deputy president, and an executive officer resigned due to "inspections" and "revision". -- A representative director & deputy president, a senior executive officer, and an executive officer resigned due to "inspections". - Reduction in monthly compensation -- The monthly compensation of a senior executive officer has been reduced by 10% due to "30% rule" and "revision". -- The monthly compensation of a senior executive officer and an executive officer has been reduced by 5% due to "SME lending". Based on the results of the third-party investigation, which stated there were deeds that could be deemed evasions of inspections, UFJ decided to change the disciplinary punishment for Kazumi Okazaki (representative director & deputy president), Sen Hayakawa (senior executive officer), and Masayuki Inaba (executive officer) to "dismissal". In response to the series of administrative actions, UFJ applied rigid disciplinarily punishments (demotion etc.) to 78 employees due to "inspection" and 3 employees due to "SME lending". All directors, executive officers, and corporate auditors of UFJ Holdings and UFJ Bank have been and will receive, for the time being, a 50% reduction in their monthly compensation due to the net loss and suspension of dividend in the fiscal 2003. UFJ will additionally cut the monthly compensation by 30% for Ryosuke Tamakoshi (President of UFJ Holdings) and Takamune Okihara (President of UFJ Bank), and by 20% for Toshihide Mizuno (senior executive officer of UFJ Bank), for the time being. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Becomes Second-Largest Memory Chipmaker ------------------------------------------------------------ Hynix Semiconductor Inc. outpaced rival Micron Technology Inc. in the second quarter of this year to become the world's second- largest dynamic random access memory (DRAM) supplier, market researcher iSuppli Corporation announced on its Web site. This represents another market-share triumph for Hynix of South Korea, which retook the number-three DRAM ranking from Infineon Technologies AG in the fourth quarter of 2003. Hynix in the second quarter of 2004 boosted its DRAM revenue by 23 percent compared to the first quarter. In contrast, Micron's DRAM sales increased by a modest 2 percent. Although Micron has been shifting its DRAM manufacturing capacity to produce other parts -- a move that opened the door for its competitors to take some of its market share -- this remains an impressive achievement for the long-suffering Hynix. After resolving questions concerning its ownership situation, its financial performance and its continued viability as an independent company, Hynix still faces a trade dispute. The United States and the European Union have slapped countervailing duties on imported Hynix DRAMs. Despite these challenges, Hynix in the second quarter accounted for 16.9 percent of worldwide DRAM sales, second only to fellow South Korean memory maker Samsung Electronics Ltd., which controlled 27.7 percent of global revenue. Micron fell to third place with a 15.3 percent share of global sales, 1.6 percentage points less than Hynix. The table below presents revenue market share rankings for the world's top ten DRAM makers. Even more impressive than Hynix's market share achievement was its accomplishment in DRAM operating margin in the second quarter. Due to aggressive cost-cutting efforts, Hynix's operating margin equaled approximately 40 percent in the second quarter, iSuppli estimates. This number is not far behind Samsung, whose DRAM margin is perennially the highest in the industry. By leveraging its diverse product line, which includes products ranging from graphics memories to legacy SDRAMs, Hynix achieved an average selling price (ASP) of $6.20 during the second quarter. The diverging DRAM fortunes of Hynix and Micron in the second quarter reflect their varying corporate strategies. Hynix has been sticking to its knitting by focusing on the memory business, and selling off its other product lines. In contrast, Micron and competitor Infineon Technologies AG have turned their attention to non-DRAM products and have allocated more capacity to devices like logic and CMOS image sensors. In other DRAM market-share news, Elpida Memory Inc.'s DRAM sales rose by 76 percent in the second quarter, which was the largest growth in the industry during the time period. Elpida of Japan now stands solidly among the world's top-five DRAM suppliers with a 6.4 percent market share. The Japanese supplier's DRAM unit shipment increased by 46 percent during the quarter as it ramped up production on 300-mm diameter wafers. Elpida's manufacturing partner, Powerchip of Taiwan, posted the industry's second-strongest growth during the quarter. Powerchip's DRAM revenue rose by 46 percent compared to the first quarter and its unit shipments now exceed those of any other Taiwanese suppliers. Samsung achieved the strongest sales growth of the top-four suppliers. Its DRAM sales revenue grew to $1.85 billion, up 25 percent from the first quarter. Infineon retained the number- four position with a 14.4 percent market share. The overall DRAM market in the second quarter grew to $6.7 billion, up 21.4 percent from the first quarter. iSuppli will issue its final second-quarter DRAM market share estimates in the near future. TOP TEN DRAM SUPPLIERS FOR 2Q 2004 Rank Company 2Q04 Q-over-Q Q2 sales growth market share 1 Samsung $1849 Mln 24.7% 27.7% 2 Hynix $1130 Mln 23.1% 16.9% 3 Micron $1021 Mln 1.9% 15.3% 4 Infineon $960 Mln1 7.9% 14.4% 5 Elpida $430 Mln 75.5% 6.4% 6 Powerchip $357 Mln 46.4% 5.4% 7 ProMOS/Mosel $309 Mln 21.2% 4.6% -Vitelic 8 Nanya $304 Mln 21.1% 4.6% 9 Elite $81 Mln 39.7% 1.2% 10 Winbond $70 Mln 11.0% 1.0% Others $156 Mln -1.8% 2.3% Total $6667 Mln 21.4% 100% CONTACT: Hynix Semiconductor Incorporated San 136-1 Ami-ri Bubal-eup Ichon-si Gyeonggi, KYONGGI-DO 467-866 Korea (South) Tel: +82 31 630 4114 Tel: +82 31 630 4101 iSuppli Corporation 1700 East Walnut Avenue El Segundo, CA 90245 Phone: 310 524 4000 Fax: 310 524 4050 KOOKMIN BANK: Expects Better 2H Performance ------------------------------------------- With the improving quality of its credit-card assets, Kookmin Bank expects its net profit in the second half of 2004 to be larger compared to the first, The Asian Wall Street Journal reported on Wednesday. The bank incurred a net profit of KRW307.6 billion (US$264.7 million) in the first half versus a loss of KRW161.2 billion a year earlier as provisions shrank, helped by an improvement in its credit-card operations. Loan-loss provisions fell 28% to KRW2.16 trillion from KRW2.99 trillion. Local lenders, particularly retail-oriented Kookmin Bank, have taken significant hits from credit-card-related losses following a surge in consumer credit defaulters after a spending spree in the past few years. But the banks have been focusing on reducing their bad credit-card assets, resulting in an improvement in the quality of their credit-card assets this year. CONTACT: Kookmin Bank 9-1 Namdaemoonro 2-ga Chung-gu, Seoul 100-092 Korea (South) Tel: +82 2 317 2114 Tel: +82 2 776 5637 LG CARD: Creditors OK Business Reorganization Plan -------------------------------------------------- Creditors of LG Card Co. approved on Wednesday a restructuring plan for the credit card issuer, under which the firm has agreed to sell assets and reduce debt, according to Reuters. The creditors, led by state-run Korea Development Bank (KDB), completed a KRW2.55 trillion (US$2.19 billion) debt-for-equity swap put forward in January for the troubled credit card company. LG Card expects to slash the size of assets to KRW12.6 trillion by the end of this year from last year's KRW21 trillion, and cut the ratio of risky assets against the total to 11.3 percent by 2006 from 44.4 percent at the end of 2003, KDB said. The cash-strapped card firm is expected to post a KRW175.8 billion net profit next year. For a copy of the Company's press release, go to http://bankrupt.com/misc/tcrap_lgcard0729.pdf CONTACT: LG Card Investor Relations 10th Floor, YTN Tower 6-1 Namdaemun-ro 5-ga, Joong-Gu, Seoul, Korea 100-800 Phone: 822-6009-7206 Fax: 822-6009-7983 SSANGYONG MOTOR: Not Moving Production Facilities to China ---------------------------------------------------------- Ssangyong Motor Co. will not move its production facilities to China upon takeover by Shanghai Automotive Industry Corporation (SAIC), Asia Pulse reported on Wednesday. SAIC and Chohung Bank, the main creditor of Ssangyong, signed the Memorandum of Understanding (MOU) in Seoul on Tuesday. Under the MOU, SAIC was chosen as the exclusive preferred buyer to purchase 48.9 percent shares of the South Korean carmaker. Both parties will conduct further investigation and negotiation, and if they agreed with conditions proposed by each other, they will finally sign the definitive agreements around September or October, according to SAIC President Hu Maoyuan. Ssangyong Motor has been up for sale since its creditors bailed it out following the 1997-1998 financial crisis. The South Korean company went into restructuring in 2000. CONTACT: Ssangyong Motor Company Limited 150-3 ChilgoE-dong Pyeongtaek-si, Kyonggi 459-711 Korea (South) Tel: +82 31 610 1114 Tel: +82 31 610 3739 =============== M A L A Y S I A =============== AKTIF LIFESTYLE: Discloses Restructuring Update ----------------------------------------------- Further to the initial announcement made on 15 June 2004, the Board of Directors of Aktif Lifestyle Corporation Berhad said it is still working on a restructuring scheme, the implementation of which will enable the Company to ensure a level of operations that is adequate to warrant continued trading and/or listing on the Official List. This Bursa Malaysia announcement is dated 28 July 2004. BOUSTEAD HOLDINGS: Issues Additional 172,000 Ordinary Shares ------------------------------------------------------------ Boustead Holdings Berhad's additional 172,000 new ordinary shares of RM0.50 each issued pursuant to the employees' share option scheme will be granted listing and quotation with effect from 9 a.m., Friday, 30 July 2004. CONTACT: Boustead Holdings Berhad 18th Floor, Menara Boustead, 69 Jalan Raja Chulan, 50200 Kuala Lumpur Tel: 03-2141 9044 Fax: :03-21430075 Web site: http://www.boustead.com.my CHG INDUSTRIES: Securities Suspension Pending --------------------------------------------- CHG Industries Berhad has failed to regularize its financial condition within the prescribed time frame pursuant to paragraph 8.14 of the Listing Requirements and paragraph 5.0 of Practice Note No. 4/2001. Bursa Malaysia Securities announced that the trading in the Company's securities will be suspended with effect from 9 a.m., Wednesday, 4 August 2004 until further notice. CONTACT: CHG Industries Berhad Registered Address: B-12-15 Block B Megan Avenue II 12 Jalan Yap Kwan Seng 50450 Kuala Lumpur Tel: 03-27112100 Fax: 03-27136999 Web site: www.chg.com.my GULA PERAK: Grants Listing of 10,800 Ordinary Shares ---------------------------------------------------- Gula Perak Berhad's additional 10,800 new ordinary shares of RM1.00 each issued pursuant to the conversion of 10,800 irredeemable convertible secured loan stocks will be granted listing and quotation with effect from 9.00 a.m., Friday, 30 July 2004. CONTACT: Gula Perak Berhad 218 Jalan Ipoh Kuala Lumpur, 51200 MALAYSIA +60 3 4044 2828 +60 3 4044 6688 KILANG PAPAN: MITI OKs Revised Restructuring Scheme --------------------------------------------------- Reference is made to the announcement made by AmMerchant Bank Berhad (AmMerchant Bank) on 22 June 2004 on the revision to the proposed restructuring scheme of Kilang Papan Seribu Daya Berhad (KPSD). In a disclosure to the Bursa Malaysia Securities Berhad, the Ministry of International Trade and Industry (MITI) approved the revision to the proposed restructuring scheme of KPSD vide their letter dated 27 July 2004 subject to, inter alia, the following conditions: a) Approval for the listing scheme is to be obtained from the Securities Commission (SC) and the Company is required to adhere to the guidelines on acquisitions, takeovers and mergers; b) KPSD and Padas Hevea Wood Products Sdn Bhd will be given three (3) years to fulfill the equity conditions as stated in its manufacturing licenses; and c) KPSD is required to inform the MITI of the fulfillment of the above conditions upon completion of the revision to the Proposed Restructuring Scheme. KPSD is currently waiting for approvals from the SC and the Foreign Investment Committee on its revised Proposed Restructuring Scheme. CONTACT: Kilang Papan Seribu Daya Berhad Lot 1 Harmoni Industrial Estate Kolombong, Inanam 88100 Malaysia Tel: +60 88 423 385 Tel: +60 88 423 287 This announcement is dated 28 July 2004. KUMPULAN BELTON: Releases Default Status Update ----------------------------------------------- The Board of Directors of Kumpulan Belton Berhad disclosed to the Bursa Malaysia Securities Berhad the following updates on the status of the Company's default in payment and involvement in litigation for the period from June 29, 2004 to the date of this announcement. INVOLVEMENT IN LITIGATION 1) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Belton Properties Sdn Bhd (Defendant) & Kumpulan Belton Berhad (Guarantor) Kuala Lumpur High Court Suit No. D4-22-1204-2002 No changes. 2) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Belton-Dorbyl Automotive Products Sdn Bhd (Defendant) & Kumpulan Belton Berhad (Guarantor) Kuala Lumpur High Court Suit No. D7-22-1088-2002 No changes. 3) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Belton Fasteners Sdn Bhd (Defendant) & Kumpulan Belton Berhad (Guarantor) Ipoh High Court (No.3) Civil Suit No. 22-251-2001 Our application for stay of proceedings pending our appeal to the Judge in Chambers, which was fixed for hearing on 03/06/2004 was adjourned to 08/07/2004 at the request of the plaintiff's solicitors. We have withdrawn our application for stay of proceedings. Enclosure 21, our appeal to Judge in Chambers is fixed for hearing on 7/10/2004. Enclosure 21 is an appeal against the Registrar's decision disallowing our application to adduce further evidence. 4) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Belton HWC Industries Sdn Bhd (Defendant) & Kumpulan Belton Berhad (Guarantor) Kuala Lumpur High Court Suit No: D8-22-1430-2002 Our appeal to Judge in Chambers against Registrar's decision to allow Plaintiff's application for Summary Judgement fixed for hearing on 22/07/2004 was adjourned to 03/11/2004 pending settlement. 5) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Belton Springs Sdn. Bhd (Defendant) & Kumpulan Belton Berhad (Guarantor) Kuala Lumpur High Court Suit No: D8-22-1429-2002 Our appeal to Judge in Chambers against Registrar's decision to allow Plaintiff's application for Summary Judgement fixed for hearing on 22/07/2004 was adjourned to 03/11/2004 pending settlement. 6) a) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Aesthetic Development Sdn Bhd (Defendant) Ipoh High Court Originating Summons No. 24-706-2001 The plaintiff's application by Summons in Chambers for a new auction (third) date fixed for hearing on 26/07/2004 was adjourned to 08/11/2004. b) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Aesthetic Development Sdn. Bhd (Defendant) & Kumpulan Belton Berhad (Guarantor). Ipoh High Court Suit No: 22-173-2003. The plaintiff's application for Summary Judgement fixed for hearing on 21/07/2004 was adjourned at the request of the plaintiff's solicitors to file affidavit in reply. Next date is 08/09/2004 for mention. c) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Pleasant Venture Sdn Bhd (Defendant) Ipoh High Court Originating Summons No: 24-707-2001. The plaintiff's application by Summons in Chamber for a new auction (third) date fixed for hearing on 26/07/2004 was adjourned to 08/11/2004. 7) RHB Bank Berhad (Plaintiff) vs Belton Springs Sdn Bhd (Defendant) & Kumpulan Belton Berhad (Guarantor). Ipoh High Court Civil Suit No.22-133-2001 Our appeal to Judge in Chambers against Registrar's decision in allowing Summary Judgment is fixed for hearing on 26/08/2004. 8) RHB Bank Berhad (Plaintiff) vs Belton Sdn Bhd (Defendant) & Kumpulan Belton Berhad (Guarantor) Ipoh High Court Civil Suit No.22-134-2001 Plaintiff's application for Summary Judgment was allowed by the Registrar on 13/07/2004. We have filed an appeal to Judge in Chambers on 22/07/2004. The hearing date of appeal is to be fixed by court. 9) AmBank Berhad (Plaintiff) vs Belton Sdn Bhd (Defendant) & Kumpulan Belton Berhad (Guarantor) Kuala Lumpur High Court Civil Suit No: D9-22-2365-2000 At the case management on 08/07/2004, the court has fixed 29/08/2005 and 30/08/2005 for trial. 10) AmBank Berhad (Plaintiff) vs Kumpulan Belton Berhad (Defendant) Kuala Lumpur High Court No. D2-22-1369-2003 Plaintiff's application for Summary Judgement was allowed by Registrar on 24/06/2004. We shall be filing on application for stay of execution soon pending our appeal to the Judge in Chambers filed on 29/06/2004. 11) Aseambankers Malaysia Berhad (Plaintiff) vs Kumpulan Belton Berhad (Defendant) Kuala Lumpur High Court D2-22-1827-2003 Plaintiff's application for Summary Judgement fixed for hearing on 06/07/2004 was adjourned to 17/08/2004. 12) Hong Leong Bank Berhad (Plaintiff) vs Belton Pins Industries Sdn Bhd (Defendant); Kumpulan Belton Berhad and 2 Others (Guarantor) Kuala Lumpur High Court No. D7-1845-2003 Plaintiff's application for Summary Judgement fixed for hearing on 15/06/2004 was adjourned to 17/08/2004. 13) Danaharta Managers Sdn. Bhd. (Plaintiff) vs Belton Fasteners Sdn. Bhd (Defendant) Ipoh High Court Originating Summons No. 24-389-2004 In response to Plaintiff's application to remove caveat and for vacant possession, we have filed an affidavit with counter- claim. The hearing fixed on 15/07/2004 was adjourned to 06/10/2004. Plaintiff's solicitor is writing to court for an earlier date. Note: The is no subsequent payment to lenders except repayment to the following financial institutions between 01/03/2004 to the date of this announcement: Lender Subsidiary Amount (RM) BCB Belton Sdn. Berhad 1,350,000 * BCB Belton Auto Parts Sdn. Bhd. 200,000 OCBC Belton-Dorbyl Automotive 400,000 Products Sdn. Bhd. OCBC Belton Properties Sdn. Bhd. 70,000 * Full & final payment under compromised settlement. CONTACT: Kumpulan Belton Berhad Lot 10 Sungai Siput Light Indus'l Estate 31100 Sungai Siput, Perak Darul Ridzuan 48000 Malaysia Tel: +60 3 6257 2233 Tel: +60 3 6257 8989 LANKHORST BERHAD: Unveils Private Placement Proposal ---------------------------------------------------- Lankhorst Berhad (LB) refers to the announcement dated 28 April 2004 in which Commerce International Merchant Bankers Berhad (CIMB), on behalf of the Board of Directors of LB, had announced that the Company proposes to implement a private placement of up to 10% of the issued and paid-up share capital of the Company. CIMB announced that Lankhorst Berhad would submit applications in respect of the Proposed Placement to the relevant authorities within six (6) months from the date of this announcement as opposed to the timeframe, which was previously announced. CONTACT: Lankhorst Berhad 5th Floor, Bangunan Umno Selangor Persiaran Perbandaran Section 14, 40000 Shah Alam Selangor, Malaysia Tel: 03-50313030 Fax: 03-50313036 This Bursa Malaysia announcement is dated 27 July 2004. MANGIUM INDUSTRIES: Unit Issues Default in Payments --------------------------------------------------- Mangium Industries Bhd (formerly known as Serisar Industries Bhd) (MIB) announced that its wholly owned subsidiary, Mangium Sawmill Sdn Bhd (formerly known as Kilang Papan Dasatu Sdn Bhd) (MSSB) has not paid, and is deemed to have defaulted in its repayments on facilities granted by Standard Chartered Bank Malaysia Berhad and Southern Bank Berhad, which are unsecured. A) REASON FOR DEFAULT IN PAYMENTS Due to the unfavorable timber market and depressed prices for timber and timber related products throughout Asia since the financial crisis in the year 1997, many of the Group's buyers were adversely affected and are facing financial difficulties leading to their inability to settle their outstanding balances despite efforts made by the management to collect these outstanding debts with the Group. As a result, the cash flow generated from operations was not sufficient to service the interest and principal obligations to the lenders as and when they fell due. B) MEASURES BY THE LISTED ISSUER TO ADDRESS THE DEFAULT IN PAYMENTS Standard Chartered Bank Malaysia Berhad has agreed to the Proposed Debt Settlement & Restructuring Scheme announced by MIB on 22 December 2003. C) FINANCIAL AND LEGAL IMPLICATIONS IN RESPECT OF THE DEFAULT IN PAYMENTS INCLUDING THE EXTENT OF THE LISTED ISSUER'S LIABILITY IN RESPECT OF THE OBLIGATIONS INCURRED UNDER THE AGREEMENTS FOR THE INDEBTEDNESS The estimated total outstanding as at 30 June 2004, in relation to the payments, which are in default and are the subject matter of this announcement amounts to RM10,479,501.74. Since MIB is the guarantor for these loans, MIB is liable for the full amount and any further interest and financial cost levied there or until the settlement of these debts. D) IN THE EVENT THE DEFAULT IS IN RESPECT OF SECURED LOAN STOCKS OR BONDS, THE LINES OF ACTION AVAILABLE TO THE GUARANTORS OR SECURITY HOLDERS AGAINST THE LISTED ISSUER Not applicable. E) IN THE EVENT THE DEFAULT IS IN RESPECT OF PAYMENTS UNDER A DEBENTURE, TO SPECIFY WHETHER THE DEFAULT WILL EMPOWER THE DEBENTURE HOLDER TO APPOINT A RECEIVER OR RECEIVER AND MANAGER Not applicable. F) WHETHER THE DEFAULT IN PAYMENT CONSTITUTES AN EVENT OF DEFAULT UNDER A DIFFERENT AGREEMENT FOR INDEBTEDNESS (CROSS DEFAULT) AND THE DETAILS THEREOF, WHERE APPLICABLE The facilities listed above represent the borrowings of the MIB's wholly owned subsidiary, MSSB, and as a result of their default, the remaining facilities granted by other lenders to MSSB are all technically in default by virtue of the "Cross Default" clauses in the Letter of Offers. However, the lenders have kept in view further legal action other than those, which have been disclosed in our Annual Report and Announcements, since MIB is in active negotiations with them to normalize and regularize the accounts. The details of the facilities currently in default in compliance with Section 3.1 of Practice Note 1/2001 can be accessed at http://bankrupt.com/misc/tcrap_mangium0729.doc CONTACT: Mangium Industries Berhad 2nd Floor Menara MAA 6 Lorong Api-Api 1 88000 Kota Kinabalu Sabah Tel: 6088-315000 Fax: 6088-312213 This Bursa Malaysia announcement is dated 28 July 2004. MANGIUM INDUSTRIES: Posts Monthly Production Figure for June ------------------------------------------------------------ The Board of Directors of Mangium Industries Berhad announced the following monthly production figure for the month of June 2004 in compliance with Paragraph 9.29 of the Chapter 9 of the Bursa Malaysia Securities Berhad Listing Requirements. M3 Mangium Sawmill Sdn. Bhd. (Formerly known as Kilang Papan Dasatu Sdn. Bhd.) 1) Production of sawn timber 2) Production of finger joint timber Mangium Plantations Sdn. Bhd. (Formerly known as Serisar Forest Plantation & Products Sdn. Bhd.) 1) Production of logs 42,807.50 Total 42,807.50 METACORP BERHAD: Seeks Shareholder's Mandate Approval ----------------------------------------------------- In a disclosure to the Bursa Malaysia Securities Berhad, Metacorp Berhad proposes to seek a shareholders' approval for the Proposed Shareholders' Mandate for recurrent related party transactions of revenue or trading nature at the forthcoming Extraordinary General Meeting (PROPOSAL). Circular to Shareholders containing information on the abovementioned Proposal will be dispatched to the shareholders upon obtaining approval from Bursa Malaysia Securities Berhad. This Bursa Malaysia announcement dated 27 July 2004 CONTACT: Metacorp Berhad 76, Lorong Mamanda 1 Ampang Point 68000 Ampang Selangor Tel: 03-4256 3800 Fax: 03-4251 9858/4256 5900 Web site: http://www.metacorp.com.my MTD CAPITAL: Issues Additional 39,000 Ordinary Shares ----------------------------------------------------- MTD Capital Berhad 's additional 39,000 new ordinary shares of RM1.00 each issued pursuant to the employees' share option scheme will be granted listing and quotation with effect from 9.00 a.m., Friday, 30 July 2004. CONTACT: MTD CAPITAL BERHAD Batu 8 Jalan Batu Caves Batu Caves, Selangor Darul Ehsan 68100 MALAYSIA Tel: +60 3 6189 9022 Tel: +60 3 6187 7898 MWE HOLDINGS: Releases Notice of Director's Interests ----------------------------------------------------- MWE Holdings Berhad announced that Dato' Surin Upatkoon, the Company Director, and persons connected with him, intend to deal in Company shares during the closed-period commencing from 26 July 2004 until one (1) market day after the announcement of the Company's second quarter result ended 30 June 2004. The shareholdings of Dato' Surin Upatkoon in the Company as at to date are as follows: No. of shares percentage (%) 1) Direct interest - 786,630 ordinary shares of RM1.00 each 2) Indirect interest - *25,018,895 ordinary shares of RM1.00 each * Deemed interested by virtue of his interest in Casi Management Sdn Bhd. CONTACT: MWE Holdings Berhad Plaza Monterez No.1, Jalan Merah Kesuma U9/18, Seksyen U9 40000 Shah Alam Tel: 04 - 5824811 Fax: 04 - 5824707 OSK HOLDINGS: Releases Notice of Shares Buy Back ------------------------------------------------ OSK Holdings Berhad disclosed to Bursa Malaysia Securities Berhad the details of its shares buy back on July 27, 2004. Date of buy back from: 15/07/2004 Date of buy back to: 23/07/2004 Total number of shares purchased (units): 194,900 Minimum price paid for each share purchased (RM): 1.590 Maximum price paid for each share purchased (RM): 1.650 Total amount paid for shares purchased (RM): 317,141.79 The name of the stock exchange through which the shares were purchased: Bursa Malaysia Securities Berhad Number of shares purchased retained in treasury (units): 194,900 Total number of shares retained in treasury (units): 37,613,300 Number of shares purchased, which were cancelled (units): 0 Total issued capital as diminished: Date lodged with registrar of companies: 27/07/2004 Lodged by: Mentor Management Services Sdn Bhd CONTACT: OSK Holdings Berhad Jalan Ampang 50450 Kuala Lumpur, 50450 MALAYSIA Tel: +60 3 2162 4388 Tel: +60 3 2161 8254 PAN PACIFIC: Issues Restructuring Scheme Update ----------------------------------------------- On behalf of Pan Pacific Asia Berhad (PPAB), Avenue Securities Sdn Bhd (Avenue) announced that PPAB had on 27 July 2004 entered into a conditional restructuring agreement (Restructuring Agreement) with Goh Kheng Peow and Tan Ngaip Soon (collectively, the CSB Vendors) wherein PPAB and the CSB Vendors have agreed to undertake a restructuring scheme with the intention of restoring PPAB onto stronger financial footing via an injection of new viable business. The Proposed Restructuring Scheme to be undertaken shall entail the following: (i) Proposed scheme of arrangement with PPAB's shareholders will involve: (a) Proposed reduction of the existing issued and paid-up share capital of PPAB of RM128,578,004 comprising 128,578,004 ordinary shares of RM1.00 each (PPAB Shares) to RM6,428,900 comprising 128,578,004 ordinary shares of approximately RM0.05 each (Proposed Reduction); (b) Proposed consolidation of the 128,578,004 ordinary shares of approximately RM0.05 each in PPAB into 6,428,900 of RM1.00 each PPAB Shares (Proposed Consolidation); (c) Proposed cancellation of the entire issued and paid-up share capital of PPAB of RM6,428,900 comprising 6,428,900 PPAB Shares, resulting in a credit reserve of RM6,428,900 arising in the accounts of PPAB (Proposed Cancellation); (d) In consideration for the Proposed Cancellation, Newco, a company incorporated or to be incorporated to serve as the holding company to facilitate the implementation of the Proposed Restructuring Scheme, shall allot and issue to the shareholders of PPAB 6,428,900 ordinary shares of RM1.00 each in Newco (Newco Shares) at par, credited as fully paid-up on the basis of one (1) Newco Share for every one (1) PPAB Share held after the Proposed Consolidation; and (e) Forthwith and contingent upon the Proposed Cancellation, PPAB shall apply an amount of RM6,428,900 out of the credit reserve arising in paying in full at par 6,428,900 PPAB Shares which shall be allotted and issued, credited as fully paid-up to Newco. (Collectively, the Proposed Scheme of Arrangement with Shareholders) (ii) Proposed settlement and/or compromise of the liabilities (including contingent liabilities) owing by PPAB to its creditors via inter-alia, the issuance by Newco of not more than RM18,000,000 worth of securities which will be determined later to the Company's creditors as full and final settlement of the liabilities owing (Proposed Scheme of Arrangement With Creditors); (iii) Proposed acquisition by Newco of the entire equity interest in Compugates Sdn Bhd (CSB) from the CSB Vendors for an indicative purchase consideration of RM162,000,000 (Purchase Consideration) to be satisfied by the issuance of Newco Shares at par and/or other securities by Newco, the aggregate value of which is equivalent to the Purchase Consideration to the CSB Vendors (Proposed Acquisition); (iv) Upon completion of the Proposed Acquisition, the CSB Vendors shall collectively hold more than 33% of resultant enlarged issued and paid-up share capital of Newco. In accordance with Paragraph 6(1)(a) of Part II of the Malaysian Code on Take-Overs and Mergers, 1998 (Code), the CSB Vendors are obliged to undertake a mandatory offer for all the remaining Newco Shares not already held by them. In this respect, the CSB Vendors intend to apply to the Securities Commission (SC) for an exemption from having to undertake the mandatory offer (Proposed Exemption); (v) Proposed private placement and/or restricted issue of up to 25,000,000 new Newco Shares to eligible investors to be identified and/or existing shareholders of PPAB at a minimum issue price of RM1.00 per share in order to meet the public spread requirement as stipulated under the Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Securities) (Proposed Private Placement/Restricted Issue); and (vi) Proposed transfer of the listing status of PPAB on the Main Board of Bursa Securities to Newco (Proposed Listing Transfer). (Collectively, the Proposed Restructuring Scheme) In view of the above, the Board of Directors of PPAB has resolved to abort its existing proposed restructuring scheme, which was announced by Alliance Merchant Bank Berhad on behalf of PPAB on 17 December 2002 and approved by the SC on 21 May 2003. 2) DETAILS OF THE PROPOSED RESTRUCTURING SCHEME The detailed terms and conditions of the Proposed Acquisition will be finalized and incorporated into the definitive agreements to be executed by the relevant parties. Save for the aforesaid, the Proposed Scheme of Arrangement with Creditors and the Proposed Private Placement/Restricted Issue, of which the terms and conditions have yet to be finalized, the details of the Proposed Restructuring Scheme (which will be undertaken pursuant to Section 176 of the Companies Act, 1965 (Act)) are as follows: 2.1 Proposed Scheme of Arrangement with Shareholders PPAB proposes to undertake the following: (a) Proposed reduction of the existing issued and paid-up share capital of PPAB of RM128,578,004 comprising 128,578,004 PPAB Shares to RM6,428,900 comprising 128,578,004 ordinary shares of approximately RM0.05 each; (b) Proposed consolidation of the 128,578,004 ordinary shares of approximately RM0.05 each in PPAB into 6,428,900 of RM1.00 each PPAB Shares; (c) Proposed cancellation of the entire issued and paid-up share capital of PPAB of RM6,428,900 comprising 6,428,900 PPAB Shares, resulting in a credit reserve of RM6,428,900 arising in the accounts of PPAB; (d) In consideration for the Proposed Cancellation, Newco shall allot and issue to the shareholders of PPAB 6,428,900 Newco Shares at par, credited as fully paid-up on the basis of one (1) Newco Share for every one (1) PPAB Share held after the Proposed Consolidation; and (e) Forthwith and contingent upon the Proposed Cancellation, PPAB shall apply an amount of RM6,428,900 out of the credit reserve arising in paying in full at par 6,428,900 PPAB Shares which shall be allotted and issued, credited as fully paid-up to Newco. The Proposed Scheme of Arrangement with Shareholders will be effected pursuant to Sections 64 and 176 of the Act. The 6,428,900 new Newco Shares to be issued pursuant to the Proposed Scheme of Arrangement with Shareholders shall rank pari passu in all respects with the existing Newco Shares except that they will not be entitled to any rights, dividends, allotment and/or other distributions for which the relevant entitlement date precedes the relevant issue date of the said shares. 2.2 Proposed Scheme of Arrangement with Creditors PPAB proposes to enter into discussions with its creditors to reach an agreement and/or compromise on the liabilities (including liabilities that are actual and contingent) owing by PPAB to its creditors via inter-alia, the issuance by Newco of not more than RM18,000,000 worth of securities which will be determined later to the Company's creditors as full and final settlement of the liabilities owing. As at 30 June 2003, the total liabilities (including contingent liabilities) owing by PPAB (at Company level) to its creditors amounted to approximately RM234.9 million. Details of the Proposed Scheme of Arrangement with Creditors will be announced accordingly when all terms and conditions have been finalized. 2.3 Proposed Acquisition Newco shall acquire the entire equity interest in CSB from the CSB Vendors for an indicative purchase consideration of RM162,000,000 to be satisfied by the issuance of Newco Shares at par and/or other securities by Newco, the aggregate value of which is equivalent to the Purchase Consideration to the CSB Vendors. The Purchase Consideration was arrived at on a willing buyer- willing seller basis after taking into consideration inter-alia, the following: (i) The forecast profit after taxation of RM12.0 million for the financial year ending 31 December 2004 of CSB and its subsidiary companies (CSB Group); and (ii) The historical financial performance of the CSB Group. The detailed terms and conditions for the Proposed Acquisition including the nature of the Purchase Consideration will be finalized and announced upon the execution of the definitive agreements. 2.3.1 Information on the CSB Group CSB was incorporated in Malaysia as a private limited company under the Act on 19 May 1997. The authorized share capital of CSB is RM500,000 comprising 500,000 ordinary shares of RM1.00 each of which 500,000 ordinary shares of RM1.00 have been issued and fully paid-up. The principal activities of CSB are trading, marketing and distribution of imaging, information technology and communication-based products, whilst the principal activities of its subsidiary companies are as shown in Table 1 below. The audited consolidated financial records of the CSB Group for the past five (5) financial years ended 31 December 1999 to 2003 are as shown in Table 2 below. 2.3.3 Original Dates and Cost of Investments The original dates and cost of investments of the CSB Vendors in CSB are as shown in Table 3 below. 2.4 Proposed Exemption Upon completion of the Proposed Acquisition, the CSB Vendors shall collectively hold more than 33% of resultant enlarged issued and paid-up share capital of Newco. In accordance with Paragraph 6(1)(a) of Part II of the Code, the CSB Vendors are obliged to undertake a mandatory offer for all the remaining Newco Shares not already held by them upon completion of the Proposed Acquisition In this respect, the CSB Vendors intend to apply to the SC for an exemption from having to undertake the mandatory offer pursuant to the relevant provisions of the Code. 2.5 Proposed Private Placement/Restricted Issue Newco proposes to undertake a private placement and/or restricted issue of up to 25,000,000 new Newco Shares to eligible investors and/or existing shareholders of PPAB to be identified at a minimum issue price of RM1.00 per share. Based on the above, the indicative proceeds of the Proposed Private Placement/Restricted Issue of RM25.0 million will be utilized to finance the working capital requirements of the Newco group of companies. Further details of the Proposed Private Placement/Restricted Issue will be announced upon the finalization of the terms of the Proposed Acquisition. The Newco Shares to be issued pursuant to the Proposed Private Placement/Restricted Issue shall rank pari passu in all respects with the existing Newco Shares except that they will not be entitled to any rights, dividends, allotment and/or other distributions for which the relevant entitlement date precedes the relevant issue date of the said shares. 2.6 Proposed Listing Transfer It is proposed that the entire issued and paid-up capital of PPAB be de-listed from the Official List of the Main Board of Bursa Securities and that Newco be admitted to the Official List of the Main Board of Bursa Securities with the listing of the entire issued and paid-up share capital after the Proposed Restructuring Scheme. 3) SALIENT TERMS OF THE RESTRUCTURING AGREEMENT The salient terms of the Restructuring Agreement include, amongst others the following: (i) The Proposed Restructuring Scheme is conditional upon the following condition precedents being fulfilled within twelve (12) months from the date of the Restructuring Agreement or by such later date(s) as may be mutually agreed upon in writing (Cut-off Date): (a) The approval of the following authorities (Authorities): i. The SC; ii. The Foreign Investment Committee (FIC); iii. The Bursa Securities, for the admission of Newco to the Official List, the listing of and quotation for the entire enlarged issued and paid-up shares of Newco to be issued and allotted pursuant to the Restructuring Scheme on the Main Board of the Bursa Securities and the delisting of PPAB; iv. If required, the Ministry of International Trade and Industry (MITI); and v. If required, any other relevant authorities; (b) The requisite approvals of PPAB's shareholders in general meeting for the Proposed Restructuring Scheme; (c) Sanction and confirmation of the High Court of Malaya for the Proposed Restructuring Scheme approved by PPAB's shareholders at a court convened meeting; (d) Sanction and confirmation of the High Court of Malaya for the Proposed Scheme of Arrangement with Creditors approved by the creditors at a court convened meeting; (e) The due execution and delivery of all agreements, documents and instruments necessary to document and give effect to the Proposed Restructuring Scheme including but without limitation, the entry into, execution and delivery of the definitive agreement(s) by Newco and the CSB Vendors in respect of the Proposed Acquisition; (f) PPAB being reasonably satisfied with the results of the due diligence on the CSB Group; and (g) The results of the due diligence on the PPAB group of companies do not reveal or identify any prohibition or restriction in respect of any issue, which will delay or prevent the implementation for the Proposed Restructuring Scheme. (ii) In the event the conditions precedent referred to in clause (i) Above are not fulfilled by the Cut-off Date, the Restructuring Agreement shall be deemed to be terminated and thereafter shall become null and void. (iii) In the event the condition(s) of the Authorities' approval is not acceptable to any party, the parties concerned may within 30 days from the receipt of the conditional approval, either make an appeal against the said condition(s) or reject the said condition(s). In default of any election by the parties to appeal or reject the said condition(s), all parties shall be deemed to have accepted the condition(s). (iv) PPAB and the CSB Vendors agree that in the event that the Purchase Consideration (including the number of Newco Shares/and or other securities to be issued in satisfaction thereof) shall be adjusted accordingly to reflect the purchase consideration as may be approved by the SC (Approved Purchase Consideration) PROVIDED ALWAYS THAT the Approved Purchase Consideration shall not in any event be varied by more than ten percent (10%) from the Purchase Consideration (as the case may be). Should the Approved Purchase Consideration be varied by more than ten per cent (10%), the parties hereto shall be allowed to renegotiate the terms and conditions of the Restructuring Agreement and mutually agree on a new purchase consideration in respect of the Proposed Acquisition. In the event that the parties hereto are unable to agree on a new purchase consideration within thirty (30) days of the determination by the SC being notified to PPAB or its adviser, any of the parties hereto may terminate the Restructuring Agreement by giving thirty (30) days' notice in writing to the other party. (v) Forthwith upon the execution of the Restructuring Agreement, PPAB shall be at liberty to conduct a legal and financial due diligence on the CSB Group (CSB Due Diligence) for the purposes of the Proposed Acquisition and the submissions to be made to the Authorities for approval. The CSB Due Diligence shall commence on the business day immediately following the date of the Restructuring Agreement and shall be completed within a period of thirty (30) days from the date on which all information and documents first requested by PPAB's advisers have been furnished by the CSB Group to the said advisers or prior to the execution of the definitive agreements by Newco and the CSB Vendors in respect of the Proposed Acquisition, whichever is later. (vi) The CSB Group (together with the CSB Vendors) shall be at liberty to conduct a legal due diligence on PPAB (PPAB Due Diligence) for the purposes of ensuring that there are no prohibitions or restrictions in respect of the implementation of the Proposed Restructuring Scheme. The PPAB Due Diligence shall commence on the business day immediately following the date of the Restructuring Agreement and shall be completed within a period of thirty (30) days from the date on which all information and documents first requested by the PPAB Group's advisers have been furnished by PPAB to the said advisers or prior to the execution of the definitive agreements by Newco and the CSB Vendors in respect of the Proposed Acquisition, whichever is later. 4) RATIONALE FOR THE PROPOSED RESTRUCTURING SCHEME PPAB Group had recorded consecutive losses after taxation for the past 5 years of approximately RM314.0 million, RM209.4 million, RM487.3 million and RM28.0 million for the financial year ended 31 December 1999, 18 months ended 30 June 2001 and financial years ended 30 June 2002 and 2003 respectively due to the economic downturn in 1997 which had severely affected the PPAB Group's business operations. As a result, the PPAB Group ceased its core business of timber operations in 2002. The main objective of the Proposed Restructuring Scheme is to return PPAB to better financial standing and profitability, thereby benefiting all stakeholders. 5) PROSPECTS OF THE CSB GROUP Upon completion of the Proposed Restructuring Scheme, PPAB will have a new core business via the CSB Group whose principal activities are of trading and distribution of prepaid phone cards, telecommunication equipment and office equipment. Globalization and liberalization have intensified competition and resulted in the emergence of new players in the market, particularly lower cost-producing nations. This has prompted the Government to strengthen further the nation's competitiveness. Additional measures were designed to build upon the present competitive edge, which hinges on the pillars of political stability, a business-friendly Government, educated and easily trainable workforce, abundant natural resources as well as efficient economic management that have contributed to the present strong macroeconomic fundamentals. The excellent network of infrastructure, including high-speed broadband information communication technology (ICT) connectivity has further enhanced the nation's competitiveness. Further measures were focused on reducing the cost of doing business, accelerating the transition to ICT as the enabling tool to enhance productivity as well as developing human resource to meet the demands of the New Economy. The electrical and electronic industry (E&E Industry) maintained its position as the major contributor to the export-oriented manufacturing industries, despite a slower growth 4% during the half of the year, on account of strong growth of semiconductors, ventilating and air conditioning as well as electronic equipment. Electronic equipment manufactured mainly comprised data processing equipment, communications, automotive, military and civil aerospace equipment as well as consumer electronic products. This industry continues to be Malaysia's largest export earner at 65.5% during the first six months of 2003. The global demand for electronic products, estimated at RM4,028 billion in 2002, is expected to increase by about 10%-12% in 2003, thereby providing positive impact on the performance of this industry in Malaysia. Further, growth in the E&E Industry is envisaged to gain strength following higher inter-regional trade, particularly between Association of South East Asian Nation and East Asian region. (Source: Economic Report 2003/2004) 6) RISK FACTORS (a) Change in control Following the completion of the Proposed Restructuring Scheme, the CSB Vendors are expected to emerge as the largest controlling shareholders of Newco. The CSB Vendors as the new controlling shareholders may introduce new Directors who will effectively determine the future business direction of Newco. In this regard, the CSB Vendors will be able to influence the outcome of matters requiring the vote of Newco's shareholders, unless they are required to abstain from voting by law and/or the relevant authorities. (b) Political, economic and regulatory risks Like all other business entities, changes in political, economic and regulatory conditions in Malaysia, could materially and adversely affect the financial and business prospects of the CSB Group. Amongst the political, economic and regulatory uncertainties are the changes in political leadership, expropriation, nationalization, re-negotiation or nullification of existing sales orders and contracts, interest rates, method of taxation and currency exchange rates. While the CSB Group will seek to limit the impact of such risk to its business, there is no assurance that any change in the above factors will not have a material adverse effect on the business and operations of the CSB Group. (c) Business risks The CSB Group's principal activities, which are related to the trading and distribution of prepaid phone cards, telecommunication equipment and office equipment will be subjected to certain risks inherent the ICT sector. These may include changes in general economic conditions and political conditions, inflation, taxation, interest rates and exchange rates of foreign currencies and changes in business conditions such as, but not limited to, deterioration in prevailing market conditions, labour and material supply shortages, increase in costs of labour and raw materials. (d) Competition The CSB Group competes in a competitive and fast moving prepaid phone card industry where its success is dependent on its ability to increase market share and market presence within its target markets. The ability to compete depends upon many factors both internal and external, including stock availability, product distribution channels, pricing and customer service and support. The CSB Group's strategy is to constantly meet and improve on fulfilling customers' needs and requirements in terms of prepaid distribution, namely in the availability and delivery of prepaid products and services as and when the customer requires them. Nevertheless there can be no assurances that any changes in the competitive environment will not have a material effect on the CSB Group's business. (e) Dependence on key personnel The success of the CSB Group will depend to a significant extent upon the abilities and continued efforts of its current management team. The loss of any member of its management team may have an impact on the CSB Group's operations. The CSB Group's future success will also depend upon its ability to attract and retain skilled personnel. 7) EFFECTS OF THE PROPOSED RESTRUCTURING SCHEME The proforma effects of the Proposed Restructuring Scheme on the share capital, net tangible asserts (NTA), gearing and substantial shareholdings of PPAB and Newco can only be determined upon finalization of the detailed terms of the Proposed Restructuring Scheme. A detailed announcement will be made in due course upon finalization of the aforesaid terms. The Proposed Restructuring Scheme is expected to contribute positively to the future earnings of Newco. 8) CONDITIONS OF THE PROPOSED RESTRUCTURING SCHEME The Proposed Restructuring Scheme is subject to and conditional upon approvals from, amongst others, the following: (a) The SC; (b) The FIC; (c) The Bursa Securities, for the admission to the Official List, the listing of and quotation for the entire enlarged issued and paid-up shares of Newco to be issued and allotted pursuant to the Restructuring Scheme on the Main Board of the Bursa Securities and the delisting of PPAB; (d) The MITI, if applicable; (e) The shareholders of PPAB; (f) The sanction of the High Court of Malaya; (g) The creditors of PPAB; and (h) Other relevant authorities The Proposed Scheme of Arrangement with Shareholders, Proposed Scheme of Arrangement with Creditors, Proposed Acquisition, the Proposed Exemption, the Proposed Private Placement/Restricted Issue and the Proposed Listing Transfer are inter-conditional upon one another. 9) DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTEREST Save for their interest as shareholders, none of the Directors and/or substantial shareholders of PPAB and persons connected with the Directors and substantial shareholders have any interest, direct or indirect, in the Proposed Restructuring Scheme. 10) ADVISER Avenue has been appointed as adviser for the Proposed Restructuring Scheme. 11) OTHER MATTERS A detailed announcement in compliance with the relevant provisions of the SC's Policies and Guidelines on Issues/Offer of Securities and the Listing Requirements of Bursa Securities will be made in due course upon the finalization of the detailed terms of the Proposed Restructuring Scheme and the execution of the definitive agreements for the Proposed Acquisition. Barring any unforeseen circumstances, the Proposed Restructuring Scheme is expected to be completed within twelve (12) months from the date of this announcement. 12) DOCUMENTS FOR INSPECTION The Restructuring Agreement may be inspected at the registered office of PPAB at Unit No. 602B, Level 6, Tower B, Uptown 5, 5 Jalan SS 21/39, Damansara Uptown 47400 Petaling Jaya, Selangor Darul Ehsan during normal business hours from Mondays to Fridays (except public holidays) for a period of three (3) months from the date of this announcement. This Bursa Malaysia announcement is dated 27 July 2004. CONTACT: Pan Pacific Asia Berhad Unit No. 602B, Level 6, Tower B, Uptown 5, 5 Jalan SS21/39, Damansara Uptown, 47400 Petaling Jaya, Selangor Tel: 03-77278168 Fax: 03-77271622 For more information, go to http://bankrupt.com/misc/tcrap_panpacific0729.doc PARK MAY: Proposes Restructuring Scheme --------------------------------------- Bursa Malaysia Securities Berhad announced that the proposed restructuring scheme of Park May Berhad is comprised of the following: (a) Proposed acquisitions of six (6) subsidiaries of Kumpulan Kenderaan Malaysia Berhad (KKMB) by Konsortium Transnasional Berhad (KTB), the company which will assume the listing status of Park May pursuant to the Proposed Restructuring Scheme, for a total purchase consideration of RM85,055,614 to be satisfied by the issuance of 170,111,229 new ordinary shares of RM0.50 each (Shares) in KTB (Proposed Acquisitions); (b) Proposed conditional voluntary offer by KTB to acquire all the issued and paid-up share capital of Syarikat Kenderaan Melayu Kelantan Berhad (SKMK), a subsidiary of KKMB, comprising 7,250,620 ordinary shares of RM1.00 each to be satisfied by the issuance of new Shares in KTB at an issue price of RM0.50 per Share on the basis of ten (10) new KTB Shares for every one (1) existing ordinary share of RM1.00 each held in SKMK; (c) Proposed conditional voluntary offer by KTB to acquire all the issued and paid-up share capital of Tanjong Keramat Temerloh Utara Omnibus Berhad (Keramat), a subsidiary of KKMB, comprising 1,054,653 ordinary shares of RM1.00 each to be satisfied by the issuance of new Shares in KTB at an issue price of RM0.50 per Share on the basis of seven (7) new KTB Shares for every one (1) existing ordinary share of RM1.00 each held in Keramat; (Items (a), (b) and (c) to be collectively referred to as "Proposed Acquisitions Of Bus Companies) (d) Proposed exchange of all the existing ordinary shares of RM1.00 each in Park May with new Shares in KTB on the basis of two (2) new Shares in KTB for every three (3) existing ordinary shares held in Park May prior to the Proposed Shares Cancellation (Proposed Share Exchange); (e) Proposed cancellation of the entire issued and paid-up share capital of Park May and issuance of new ordinary shares of RM1.00 each in Park May to KTB; (f) Proposed debt restructuring of the Company's balance outstanding Commercial Papers of approximately RM74.0 million (Proposed Debt Restructuring); (g) Proposed waiver to KKMB and parties acting in concert with it from the obligation to extend an unconditional mandatory general offer for all the remaining Shares not already owned by them in KTB after the Proposed Acquisitions Of Bus Companies and Proposed Share Exchange; (h) Proposed offer for sale / placement of the Shares in KTB held by KKMB in order to comply with the minimum 25% public shareholding spread requirement; and (i) Proposed admission of the entire enlarged issued and paid-up share capital of KTB to the Official List of the Malaysia Securities Exchange Berhad and proposed delisting of Park May. (Items (a) to (i) to be collectively referred to as "Proposed Restructuring Scheme) On 11 March 2004, AmMerchant Bank Berhad (AmMerchant Bank), on behalf of Park May, announced that the Company has submitted an application to the Securities Commission (SC) and other relevant authorities for the Proposed Restructuring Scheme. In this respect, on behalf of the Company, AmMerchant Bank is pleased to announce that the SC has approved the Proposed Restructuring Scheme, as proposed, via its letter dated 27 July 2004 (which was received on 28 July 2004). However, the SC's approval on the Proposed Restructuring Scheme is subject to the following conditions: (i) The Proposed Restructuring Scheme and the issuance of prospectus for the offer for sale should only be implemented after approval has been obtained from the Commercial Vehicles Licensing Board (CVLB) for the following: (a) The transfer of the CVLB licences from the United Transport Co. Sdn Bhd to Kenderaan Langkasuka Sdn Bhd (Langkasuka), both being subsidiaries of KKMB, or, alternatively, approval for the existing bus lease agreement between these two companies; (b) The bus lease agreement between Langkasuka and three (3) subsidiaries of Park May, namely Central Province Wellesley Transport Company Sdn Bhd, The Min Sen Omnibus Company Sdn Bhd and Sam Lian Omnibus Company Sdn Bhd; and (c) The bus lease agreement between Kenderaan Klang Banting Berhad (Klang Banting) and three (3) subsidiaries of Park May, namely The Kuala Lumpur, Klang And Port Swettenham Omnibus Company Berhad, The Kuala Selangor Omnibus Company Berhad and Tanjung Karang Transportation Sdn Bhd, and after approvals from the other relevant authorities have been obtained. Should the above-mentioned bus lease agreements (Lease Agreements) and/or transfer of licenses be disallowed by CVLB and / or the parties involved be penalized under the CVLB Act, 1987 (CVLB Act), Park May / KTB are required to inform the SC of the impact of the penalty on KTB and its subsidiaries' (KTB Group" or "Group) business operations, financial position and earnings and to seek SC's reconsideration for the Proposed Restructuring Scheme (including any necessary revision); (ii) Park May / KTB should make full disclosure in the Explanatory Statement / Circular to Shareholders and prospectus for the offer for sale on the following: (a) Basis of arriving at the purchase consideration for the eight (8) companies which are the subject of the Proposed Acquisitions Of Bus Companies. In this regard, AmMerchant Bank / Park May / KTB are to comment on the reasonableness of the purchase consideration; and (b) The potential implications of the breach of the relevant sections of the CVLB Act arising from the Lease Agreements involving Langkasuka and Klang Banting, the potential impact on the KTB Group's operations, financial position and earnings should CVLB's approval be not granted for the Lease Agreements or should the relevant parties be penalized under the CVLB Act, and the detailed measures and action plan taken by the Group to address the issue; (iii) Park May / KTB should inform the SC of the final number of KTB Shares to be offered pursuant to the proposed offer for sale / placement of Shares in order to comply with the 25% public shareholding spread requirement; (iv) Moratorium to be imposed on 85,055,615 new KTB Shares issued to KKMB as consideration for the Proposed Acquisitions, in accordance with the moratorium requirements as stipulated in the SC's Policies and Guidelines on Issue/Offer of Securities (Issues Guidelines); (v) The directors and substantial shareholders of the new KTB Group should not be involved in any business, which would be in conflict with the Group's core business activities. Accordingly, KKMB should dispose of its interest in Sistem Kenderaan Seremban-KL Sdn Bhd and any other companies involved in the provision of bus services before the implementation of the Proposed Restructuring Scheme; (vi) Park May should appoint an independent firm of auditors (which has the requisite experience in conducting investigative audits and which is not the existing or previous auditors of the Park May Group) within two (2) months from the date of this letter to conduct an investigative audit so as to ascertain the reasons for the past losses of Park May. Park May is also required to take the necessary actions to recover its past losses and, based on the findings of the investigative audits, Park May is required to make a report to the relevant authorities should there have been any transgression of any relevant laws, regulations, guidelines or the Memorandum & Articles of Association of Park May's Directors and / or any other party that had resulted in the said losses. The investigative audit must be completed within six (6) months from the date of appointment of the independent firm of auditors and appropriate announcement must be made on the findings of the investigative audit. Four (4) copies of the report are to be forwarded to the SC immediately after the completion of the investigative audit; (vii) AmMerchant Bank and KTB should obtain the SC's prior approval should there be any change to the terms and conditions of the irredeemable convertible secured loan stocks (ICSLS) to be issued pursuant to the Proposed Debt Restructuring; (viii) Prior to the issue date of the ICSLS, AmMerchant Bank should submit the following information or documents to the SC: (a) A copy of the Facility Maintenance File (FMF/JPB) form; (b) A certified true copy of the executed trust deed for the ICSLS; (c) Ratification to the issuer's declaration submitted by KTB by its new Board of Directors upon it being constituted and an extract of the board resolution evidencing the ratification; and (d) A hard and soft copy of the complete principal terms and conditions for the ICSLS. (ix) AmMerchant Bank / KTB should inform the SC on the completion of the Proposed Restructuring Scheme; and (x) Park May / KTB should comply with the relevant requirements of the Issues Guidelines in relation to the implementation of the Proposed Restructuring Scheme. CONTACT: Park May Berhad Lot 18115 Batu 5 Jalan Kelang Lama, Kuala Lumpur 58100 Malaysia Tel: +60 3 7982 7060 Tel: +60 3 7625 4987 The announcement is dated 28 July 2004. RNC CORPORATION: Extends Moratorium Period ------------------------------------------ The Special Administrators of RNC Corporation Berhad, namely Robert Teo Keng Tuan and Vincent Chew Chong Eu announced that the moratorium period for the Special Admninistrators of the Company has been extended by Pengurusan Danaharta Nasional Berhad for a further period of twelve (12) months from 28 July 2004 to 27 July 2005 pursuant to Section 41(3) of the Act. CONTACT: RNC Corporation Berhad 20/F East Wing Plaza Permata Jalan Kampar Off Jalan Tun Razak, 50400 Kuala Lumpur Wilayah Persekutuan Malaysia Tel: +60 3 4043 9411 Tel: +60 3 4043 1233 TANJONG PUBLIC: Receives Notification on Listing Requirements ------------------------------------------------------------- Tanjong Public Limited Co. received notifications pursuant to Paragraph 14.09 (a) of the Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Malaysia) of Dealings during Open Period. Bursa Malaysia announced that the Company has been notified of the following dealings by Yin Yee Yuen, a Principal Officer of the Company pursuant to Paragraph 14.09 (a) of the Listing Requirements of Bursa Securities: (1) Notification on 27 July 2004: (a) (i) That he has disposed in the open market of the Bursa Securities, 20,000 shares of 7.5 pence each in Tanjong representing 0.0050% of the issued share capital of Tanjong as at the date of the transaction; (ii) Date of transaction - 26 July 2004; and (iii) Transaction price - RM12.30 per share of 7.5 pence each. (b) (i) That he has disposed in the open market of the Bursa Securities, 20,000 shares of 7.5 pence each in Tanjong representing 0.0050% of the issued share capital of Tanjong as at the date of the transaction; (ii) Date of transaction - 26 July 2004; and (iii) Transaction price - RM12.40 per share of 7.5 pence each. (c) (i) That he has disposed in the open market of the Bursa Securities, 10,000 shares of 7.5 pence each in Tanjong representing 0.0025% of the issued share capital of Tanjong as at the date of the transaction; (ii) Date of transaction - 26 July 2004; and (iii) Transaction price - RM12.50 per share of 7.5 pence each. CONTACT: Tanjong Public Limited Co. Kuala Lumpur City Centre Kuala Lumpur, 50088 MALAYSIA Tel: +60 3 381 3388 Tel: +60 3 381 3399 ===================== P H I L I P P I N E S ===================== ABS-CBN BROADCASTING: To Pay 64-Centavo Cash Dividend Per Share --------------------------------------------------------------- A 64-centavo per share cash dividend would be given to ABS-CBN Broadcasting Co. stockholders on record on August 10, BusinessWorld reports. "ABS-CBN has good overall performance in 2003, with double-digit revenue growth, healthy balance sheet, and continued strong cash generation. ABS-CBN would like to share its exceptional performance with its stockholders," BusinessWorld quoted Chairman and Chief Executive Eugenio Lopez III as saying. An earlier report states that ABS was setting aside PHP500 million or half of its 2003 net income as dividend payment. According to the firm, 2003 net income rose by 500 percent to PHP1 billion as a result of improved economic climate and a stronger and leaner organization. Chief Financial Officer Randolph Estrellado said even if the broadcasting firm fails to get a US$120-million loan, it would still give out cash dividends because it has not been able to do so in the past two years. The loan will be used to refinance the PHP3 billion worth of debts maturing in the next 18 months. CONTACT: ABS-CBN Broadcasting Corp. ABS-CBN Broadcasting Centre Complex Mother Ignacia St. cor. Sgt. Esguerra Ave. Quezon City Telephone Numbers: 924-4101 to 4122; 415-2272 Fax Number: 431-9368 Email Address: oliver_calma@abs.pinoycentral.com Website: http://www.abscbn-ir.com ABS-CBN BROADCASTING: Issues News Article Clarification ------------------------------------------------------- ABS-CBN Broadcasting Corp. issued to the Philippine Stock Exchange a clarification to the news article entitled "ABS-CBN to acquire Benpres' 60 percent stake in Sky Cable" published in the July 28, 2004 issue of The Philippine Star (Internet Edition). The article reported that: "Lopez controlled media giant ABS-CBN Broadcasting Corp. plans to acquire the more than 60-percent controlling stake of parent Benpres Holdings Corp. in Sky Cable, The STAR learned on Tuesday. Highly placed sources from the Lopez group said that the acquisition by ABS-CBN of Sky Cable makes more sense because of the synergy between the two businesses. No decision has yet been reached as to how ABS-CBN will compensate Benpres for the purchase, but one option is a share-swap arrangement, a Lopez group official told The STAR." ABS-CBN Broadcasting Corporation ("ABS"), in its letter dated July 28, 2004, informed the Exchange that: "ABS-CBN Broadcasting Corp. presently has no plans to acquire Benpres' stake in Sky Cable or increase its stake in Sky Cable or Beyond Cable, Inc. other than in relation to the US$30,000,000 it recently invested in Beyond Cable in the form of a convertible debt instrument which will be converted into equity after two years." BENPRES HOLDINGS: Clarifies News Article on Philippine Star ----------------------------------------------------------- In a disclosure to the Philippine Stock Exchange, Benpres Holdings Corp. issued a clarification to the news article entitled "ABS-CBN to acquire Benpres' 60 percent stake in Sky Cable" published in the July 28, 2004 issue of The Philippine Star (Internet Edition). The article reported that: "Lopez-controlled media giant ABS-CBN Broadcasting Corp. plans to acquire the more than 60-percent controlling stake of parent Benpres Holdings Corp. in Sky Cable, The STAR learned on Tuesday. Highly placed sources from the Lopez group said that the acquisition by ABS-CBN of Sky Cable makes more sense because of the synergy between the two businesses. No decision has yet been reached as to how ABS-CBN will compensate Benpres for the purchase, but one option is a share-swap arrangement, a Lopez group official told The STAR." Benpres Holdings Corporation (BPC), in its letter to the Exchange dated July 29, 2004, stated that: "To date, there has been no discussion on an acquisition by ABSCBN Broadcasting Corporation of the Benpres Holdings' stake in Sky Cable." CONTACT: Benpres Holdings Corp. 4/F, Benpres Building Exchange Road corner Meralco Avenue Ortigas Center, Pasig City Telephone Number: 633-3368 Fax Number: 634-3009 E-mail Address: jr_benpres@bayantel.com.ph Website: http://www.benpres-holdings.com NATIONAL POWER: Job Cuts Could Generate PHP250Mln In Savings ------------------------------------------------------------ National Power Corp. (Napocor) will cut 370 jobs out of its 3,790 employees which would generate PHP250 million in savings from payroll, BusinessWorld reports. The state-owned power firms annual payroll amounts to PHP2.5-billion. Energy Secretary Vincent S. Perez Jr. said the retrenchment is in line with President Gloria Macapagal Arroyo's call to improve the efficiency and competitive performance in government service. But he would still consult Napocor where the retrenchments may be. "We are not specifying any individual, position, or place. It could be from anywhere, senior management, legal management, casual, contractual, or job orders," BusinessWorld quoted Mr. Perez as saying. "We have given the retirement and separation benefits to employees in those positions as interim assignments and therefore all of them have actually received their separation benefits in line with the EPIRA [Electric Power Industry Reform Act]," he added. Mr. Perez stressed that retrenched employees will have a good chance of being employed by companies interested in buying Napocor's generation projects. The job cuts would not be the first for Napocor. In 2002, the power firm reduced its 8,000 strong work force to 3,790 which resulted to a savings of PHP600 million. NATIONAL POWER: 14 SPUGs Open For Privatization ----------------------------------------------- Fourteen of National Power Corp.'s (Napocor) Small Power Utilities Groups (SPUG) would now be open for takeover to new power players, the Philippine Star reports, citing Energy Secretary Vincent S. Perez. According to Mr. Perez, there is a steady increase in the power requirements in the large island area due to increased economic activities, and most of them are promising tourist destinations, which is why privatization of the SPUGs would be necessary in order to meet their power requirements. The privatization of the SPUG areas, which would be done simultaneously with the sale of Napocor's generating assets, will be carried out within a year. Napocor-SPUG areas are being grouped into "waves" based on the suitability of the areas for supply by new private providers to ensure an orderly and well-managed private sector participation process. The "first wave" areas open for private sector participation are considered the most attractive to new players. Rules and procedures for the inflow of private capital in missionary electrification has been sent out by the Department of Energy. Napocor-SPUG operations' fund comes from missionary areas' electricity sales and from the universal charge, a component of the power bill charged to all electricity consumers. Mr. Perez said they want to make sure that the new power players would be capable financially and technically to supply electricity. They are expected to pursue projects that would address the lowest long-term cost of power and services, environmental compatibility with the local area and the most advantageous implementation schedule. Eight of the 14 SPUG's are in Luzon while there are three each in the Visayas and Mindanao. The areas open for new players in Luzon are Catanduanes, Marinduque, Masbate, Occidental Mindoro, Oriental Mindoro, Palawan, Romblon and Tablas Island; Bantayan Island, Camotes Island and Siquijor in the Visayas; and Basilan, Sulu and Tawi-tawi in Mindanao. The current peak demand in the 14 Napocor-SPUG areas total 93.7 megawatts (MW). Considered as missionary or unviable areas, Napocor-SPUG provides the electricity needs of these areas. As of Dec. 2002, the company operates a total of 234.32 MW SPUG facilities. Of these, 145 MW are in Luzon, 21.39 MW in Visayas and 35.26 MW in Mindanao. PHILIPPINE NATIONAL: First Semester Growth Performance On Track --------------------------------------------------------------- In a press release dated July 28, 2004, the Philippine National Bank (PNB) announced that it has kept its growth performance on track as total resources grew by PHP16.49 billion or eight percent to PHP216 billion as of June 30, 2004 from the end-2003 level of PHP199 billion. The increase in assets was pushed by the expansion in customer deposits and proceeds from the issuance of Tier 2 capital, which were deployed in trading and investment securities and interbank loans. The Bank's first semester performance proves the continued effectiveness of the rehabilitation initiatives which it started to pursue in mid-2002, anchored on the "Good Bank - Bad Bank" strategy. Under the Good Bank, deposit liabilities grew by seven percent to PHP158.238 billion from PHP148.291 billion in December 2003. This was propelled by the increase in low-cost deposits whose Average Deposit Balance grew by PHP6.431 billion or 11 percent during the first half of the year. Trading and investment securities also contributed to the healthy growth in the Bank's asset base, expanding by 12 percent to PHP51.476 billion from the PHP45.964 billion level as of end-2003. Initiatives under the Bad Bank further boosted efforts to improve the Bank's balance sheet. Through focused work-out strategies aimed at improving asset quality and reducing non- performing accounts, a total of PHP2.325 billion in loans were restructured, collected and foreclosed during the first half of 2003. Consequently, NPL ratio declined to 45.6 percent in June 2004, from the end-2003 figure of 46.4 percent. As a result of successes realized under the Good Bank - Bad Bank initiatives, Net Interest Margin grew by a hefty 52 percent or nearly PHP400 million during the semester. Interest Income increased by PHP474 million driven by improvements in the portfolio mix of investments and loan restructuring efforts. Interest Expense grew only slightly by PHP77 million mainly due to higher interest rates during the period, tempered by a much improved funding cost structure. Fee-based and other income amounted to PHP2.272 billion from the previous year's PHP2.551 billion, mainly because of lower collection figure for fees and charges. Trading gains on investment securities, income from acquired assets as well as rentals of bank premises and equipment continued to be strong during the period. Total ROPOA sales amounted to PHP1.029 billion, compared to PHP875 million implemented sales last year. The Bank's public auctions of foreclosed properties held in various parts of the country, such as, in Tarlac, Batangas, Camarines Sur, Cebu, Bacolod, Davao, Cagayan de Oro, and Zamboanga, as well as the use of other sales channels such as the internet have effectively expanded the market for PNB's foreclosed properties. Despite the slowdown in incoming foreign remittances experienced by the country during the first half of the year, PNB's figure continued to grow to contribute significantly to fee-based income. Administrative and Other Expenses grew by 14 percent to PHP3.073 billion from PHP2.694 billion in the first half of 2003, as the Bank absorbed the impact of the government's decision to revert back to the GRT system of taxation. As a result, PNB's net income for the first six months amounted to PHP40 million, lower than the PHP91 million it earned during the same period last year. The change in the taxation system, which saw a return from the Value Added Tax system to the Gross Receipts Tax system, was the biggest non-recurring item that affected the Bank's net income performance in the first half of 2004. PNB's capital base remained solid during the period, with Total Capital Funds of PHP24.345 billion representing 11.27 percent of Total Resources. The consolidated Group's capital adequacy ratio likewise improved to 15.1 percent from the end-December 2003 figure of 13.7 percent. The Bank has budgeted to end the year with a net profit of PHP205 million. The second half of 2004 is expected to see a picking up in the pace of the Bank's revenue generation performance as its core businesses accelerate in growth. These include a re-focusing of lending thrust to more profitable segments such as SMEs and LGUs as well as consumer finance, the launching of new products targeted at specific market segments, the conversion of PNB representative offices into full remittance centers, and more active cross-selling of group products, including bancassurance. CONTACT: Philippine National Bank PNB Financial Center President Diosdado Macapagal Boulevard, Pasay City Telephone Numbers: 891-6040 to 70; 526-3131 to 40 Fax Number: 551-5187 Email Address: pesayco@pnb.com.ph Website: http://www.pnb.com.ph PRYCE CORPORATION: Furnishes PSE With Court Order Copy ------------------------------------------------------ Pryce Corp. (PPC) refers to Circular for Brokers Nos. 3135-2004 dated July 9, 2004 and 3173-2004 dated and July 12, 2004 pertaining to Pryce Corporation's filing of Petition for Corporate Rehabilitation with Prayer for Suspension of Payments. In relation thereto, the Corporation to submitted the Philippine Stock Exchange the attached Court Order with regard to the abovementioned petition filed at the Regional Trial Court of Makati City, Branch 138. To view full copy of the Court Order, click http://bankrupt.com/misc/PRYCECOPORATION.pdf CONTACT: Pryce Corp. 17/F, Pryce Center 1179 Chino Roces Ave. Cor. Bagtikan St., Makati City Telephone Number: 899-4401 Fax No/s: 899-6865 E-mail Address: pryce@info.com.ph Website: http://www.Philgardens.com SEMIRARA MINING: Clarifies News Article --------------------------------------- Semirara Mining Corp. issued to the Philippine Stock Exchange a clarification to the news article entitled "DMCI Holdings forecasts higher profits this year" published in the July 29, 2004 issue of Today. The article reported that: "Consunji said Semirara has already exceeded last year's profit levels as of end June. In the first half of the year, net income stood at PHP140 million and revenues stood at Php1.8 billion." Semirara Mining Corporation (SCC), in its letter to the Exchange dated July 29, 2004, disclosed that: "Please be informed that we are confirming the veracity of his statement that during the first half of the year, net income and gross revenues of Semirara Mining Corporation stood at PHP140 million and PHP1.8 billion, respectively." CONTACT: Semirara Mining Corp. 4/F, Dacon Building 2281 Pasong Tamo Ext., Makati City Telephone Numbers: 867-3377 to 79; 888-3000 Fax Number: 888-3000 local 1136 Email Address: demagdayo@dmci.net ================= S I N G A P O R E ================= CHARME LUNETTES: Court Issues Winding Up Order ---------------------------------------------- In the Matter of Charme Lunettes International Pte Ltd., a Winding Up Order was made on July 16, 2004. Name and address of Liquidator: Official Receiver, Singapore at 45 Maxwell Road #05-11/#06-11 The URA Centre (East Wing) Singapore 069118. Messrs Khattar Wong & Partners Solicitors for the Petitioner. Singapore. Note: (a) All creditors of the above named company should file their proof of debt with the liquidator who will be administering all affairs of the company. (b) All debts due to the above named company should be forwarded to the liquidator. DAR HARNQ: Creditors To Submit Claims on August 23 -------------------------------------------------- Notice is hereby given that the creditors of Dar Harnq Industry (Singapore) Pte Ltd., whose debts or claims have not already been admitted, are required on or before August 23, 2004 to submit particulars of their debts or claims and any security held by them to the Liquidator. This should be done by delivering or sending through the post the Liquidator's address a formal Proof of Debt in accordance with Form 77 containing their respective debts or claims. In default of complying with this notice they will be excluded from the benefit of any distribution made before their debts or claims are proved or their priority is established and from objecting to the distribution. Lim Say Wan Liquidator. c/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809. This Singapore Government Gazette announcement is dated July 23, 2004. DAVIN INDUSTRIES: Winding Up Order Made --------------------------------------- In the Matter of Davin Industries Pte Ltd., a Winding Up Order made on July 16, 2004. Name and address of Liquidator: The Official Receiver 45 Maxwell Road #05-11/#06-11 The URA Centre (East Wing) Singapore 069118. Messrs WONG PARTNERSHIP Solicitors for the Petitioners. This Singapore Government Gazette announcement is dated July 23, 2004. KIN YUEN: Releases Winding Up Order Notice ------------------------------------------ In the matter of Kin Yuen Petroleum Pte Ltd., a Winding Up Order made the 9th day of July 2004. Name and address of Liquidator: The Official Receiver 45 Maxwell Road #05-11/#06-11 The URA Centre (East Wing) Singapore 069118. Messrs LIM & LIM Solicitors for the Petitioner. This Singapore Government Gazette announcement is dated July 23, 2004. REED GROUP: Announces Annual General Meeting Result --------------------------------------------------- The Board of Directors of Reed Group Holdings Ltd is pleased to announce that at the Annual General Meeting of the Company held on 28 July 2004, all resolutions relating to matters as set out in the Notice of Annual General Meeting were duly passed. By Order of the Board Tan San-Ju Company Secretary This announcement is submitted on July 28, 2004 to the Singapore Stock Exchange. =============== T H A I L A N D =============== BANGKOK MASS: Not For Sale, CEO Insists --------------------------------------- Bangkok Mass Transit System PCL (BTS) chief executive Keeree Kanjanapas has stressed that the skytrain operator is not for sale, according to the Bangkok Post. Mr. Keeree, who is also a major shareholder of BTS, said that from the very beginning, it never crossed his mind to invest in the project just for sale. "If I wanted to sell the skytrain, it would be done at the date before the company decided to sign a financing deal with the creditors, he said. The refinancing deal had gone through a thorough and careful review by the creditors and was deemed relatively costly. "Money is not the priority for us," Mr. Keeree insisted. "It is all about inner feelings. We are willing to sell the project immediately, even at a loss, if the government believes that we failed to fulfill our obligations agreed in the concession contract to reduce traffic and help Bangkok commuters, the Bangkok Post quoted Mr. Keeree as saying. The government says the takeover of the elevated train system and the Bangkok subway system is part of a mass transit expansion plan aimed at linking the two systems together. Mr. Keeree said the government should use money it would raise to buy the two projects if it really wants to accelerate the extension of the mass transit, this would also be an easier solution than being locked in a dispute with the private firms. Authorities have proposed buying out the holdings of creditors such as German development bank KfW, Siam Commercial Bank, the International Finance Corp and Thai Asset Management Corp. The creditors were willing to cut the operators US$1 billion (THB41.10 billion) debt by up to 45 percent if the government purchases the remaining 55 percent, Transport Minister Suriya Jungrungreangkit said. But according to BTS Chairman Kasame Chatikavanij, a term sheet of the debt-restructuring plan has been completed with creditors and was expected to become an official agreement at the company's shareholders meeting scheduled for mid-September. The restructuring plan calls for THB16 billion in debt to be converted into an equity stake, about THB8 billion to be forgiven and the remainder repaid over an 18-year period, the Bangkok Post report stated. If the company succeeds in raising funds by floating shares on the stock market, it could cut its debt in half from THB20 billion, Mr. Keeree said. CONTACT: The Bangkok Mass Transit System PCL 1000 Phahonyothin Road Lad Yao, Chatuchak Bangkok 10900 Telephone: 0 2617 7300 Fax: 0 2617 7133, 0 2617 7135 BTS Hotline: 0 2617 7141-2 BTS Tourist Information Center: 0 2617 7340 KRUNG THAI: Issues Explanation on Increased NPLs ------------------------------------------------ Krung Thai Bank PCL (KTB) refers to the previous news reports on the operating performance for the first half-yearly period of 2004 of Krung Thai and the increasing non-performing loans (NPLs) as well as provision for possible loan losses. In this connection, Krung Thai PCL wishes to further explain that: (1) The Bank's financial position is still strong. In this first half-yearly period, the Bank earned a net profit of THB6,806 million compared to a net profit of THB1,587 million in the same period of 2003. The Bank increased its provision for possible loan losses by THB3,250 million compared to the increase by THB3,541 million of provision for possible loan losses in the same period of last year. Currently, the Bank's total provision for possible loan losses stands at THB62,062 million while its ratio of capital to risk assets is 8.8 percent. Of this eight percent is tier-one capital which is higher than the capital adequacy requirement specified by the official authority. Therefore, the Bank is confident that it will still be able to make profit continuously in the second half of this year. (2) Krung Thai Bank has set aside its provision for possible loan losses higher than the Bank of Thailand's requirement for the past two years by adhering to the principle of prudence in case of certain incidents that might have an impact on the debtors' loan repayment ability in the future especially the restructured groups of debtors who have even complied with the specified terms and conditions. Apart from the restructured debtors, the Bank still has another amount of loan loss provision for loans in general. (3) The debt classification that resulted in higher figure of NPLs this time originated from the joint discussion between the Bank of Thailand and Krung Thai Bank. In the latest inspection by the BOT, more stringent criteria were used in classifying debts as doubtful of loss despite the debtors' regular repayment. Such stringent criteria are considered as an outlook for the future that there may be incidents or factors barring some debtors from regularly repaying debts as they do at present. (4) The increased NPLs from the more stringent loan classification do not have any impact on the Bank's expenses in this period since the Bank has already adopted the more stringent criteria of loan loss provisioning in excess of the requirement. The impact that took place represented the transfer of excess provision for possible loan losses into the provision for each individual debtor. (5) Approximately half of the increased NPLs are the restructured debtors, most of which are those transferred from the First Bangkok City Bank while the other half represents the general debtors comprising several corporate and medium debtors, and they are not involved in the government's projects at grassroots level. (6) In considering credit extension or lending, the Bank's consideration has been made prudently and strictly with systematic process of credit approval in the form of committees at each level. The Bank has also improved and developed its risk management system on continuous basis. The Bank's debt classification and provisioning in the past complied with the prevailing standards and requirements specified by the official authorities during that time. It was the Bank of Thailand that held discussion with Krung Thai Bank and wished to set more stringent criteria by using prudent judgment in considering the qualitative risk in classifying the non-performing loans or NPLs debtors as well as provisioning for doubtful-of-loss debts, and also wanted Krung Thai Bank to set an example of adopting more stringent criteria in order to be prepared of the Basel II or new capital accord. Krung Thai Bank thus agreed with the Bank of Thailand and would comply with the stringent criteria by following up the matter and hold close discussion with the authority. (7) According to certain press reports publishing information and list of names alleged to be KTB's customers, the Bank wishes to state that it does not have the policy to disclose the customers' names and information since they are business information/data between the Bank and the customers that are not to be disclosed. As for the information referring to the Bank of Thailand, it is the official information not to be disclosed to the general public Krung Thai Bank dose not have any knowledge of the source and facts of the alleged lists of names and information as appeared in the news. Please be informed accordingly. Yours sincerely, Krung Thai Bank Public Company Limited Pongsathorn Siriyodhin (Mr. Pongsathorn Siriyodhin) First Senior Executive Vice President Acting President of KTB CONTACT: KRUNG THAI BANK PCL Address: 35 SUKHUMVIT ROAD, KHLONG TOEI NUA, WATTANA Bangkok Telephone: 0-2255-2222 Fax: 0-2255-9391-6 Website: www.ktb.co.th NFC FERTILIZER: Releases Opinion of the Business on Tender Offer ---------------------------------------------------------------- This is in relation to Mr. Nuttaphob Ratanasuwanthawee's intention to purchase the remaining of the ordinary share of the NFC Fertilizer PCL (NFC) (previously named National Fertilizer Public Company Limited) pursuant to the details in the Tender Offer (Form 247-4) issued on July 9, 2004. In order to comply with the Notification of the Securities and Exchange Commission (SEC) No. Kor Jor 59/2545 re: Reports and Time Period for Preparing Opinion on the Tender Offer, the C.J. Morgan Company Limited as the Plan Administrator of the NFC would like to submit the Opinion of the Business on the Tender Offer (Form 250-2) pursuant to the details in the attachment and the Opinion of the Advisory Plus Company Limited (shareholder's advisor) pursuant to last details in the attachment for assisting shareholders on considering the Tender Offer. Please be advised accordingly. Yours respectfully, Visot Kajchamaporn and Mr. Ziriwat Anunkusri C.J. Morgan Company Limited On behalf of the Plan Administrator of NFC Fertilizer PCL To view full copy of the Opinion of Business Tender Offer, click http://bankrupt.com/misc/nfcfertilizer072904.txt CONTACT: NFC FERTILIZER PCL LAOPENGNGUAN BLDG 1, FLOOR 17-19, 333 VIBHAVADI RANGSIT ROAD, CHATU CHAK, Bangkok Telephone: 0-2618-8100 Fax: 0-2618-8200 Website: www.nfc.co.th THAI PETROCHEMICAL: Revised Rehab Plan Faces Problems Anew ---------------------------------------------------------- With the transfer of Thai Petrochemical Industry PCL's (TPI) US$$2.95-billion debt to many new creditors, the completion of the company's rehabilitation plan would not be possible this year, reports Business Day, citing TPI's legal advisor Chavalit Atthasart. According to Mr. Chavalit, the new creditors who bought TPI stakes have different objectives, and if the new rehabilitation plan did not serve their needs, this would hinder the rehab plan's completion for problems would surely arise, aside from present problems with TPI's founder Prachai Leophairatana. TPI's debt has been sold to other creditors at a 50 percent discount. The ministry of finance expected TPI's rehabilitation to be completed soon, in order to bring in PTT Plc as the new strategic investor. Pakorn Malakul Na Ayudhya, a member of TPI's plan administrator team, said last week that the plan would be finalized by November. CONTACT: THAI PETROCHEMICAL INDUSTRY PCL TPI TOWER,FLOOR 8, 26/56 NEW JUN ROAD, THUNGMAHAMEK, SATHON Bangkok Telephone: 0-2678-5000, 0-2678-5100 Fax: 0-2678-5001-5 Website: www.tpigroup.co.th * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Shareholders Total Equity Assets Company Ticker ($MM) ($MM) ------ ------ ------------ ------- CHINA & HONG KONG ----------------- Guangdong Sunrise-B 200030 (-177.22) 45.09 Guangdong Sunrise-A 000030 (-177.22) 45.09 Shenzhen China Bicycles-B Co., Ltd. 200017 (-203.9) 52.16 Shenzhen China Bicycles-A Co., Ltd. 000017 (-203.9) 52.16 Shenzhen Great Ocean 200057 (-10.87) 11.27 Shenzhen Petrochemical Industry Group 200013 (-290.79) 25.62 Shenzhen Petrochemical Industry Group 000013 (-290.79) 25.62 INDONESIA --------- Barito Pacific Timber Tbk Pt BRPT (-50.67) 393.92 PT Smart Tbk SMAR (-37.38) 398.89 JAPAN ----- Fujitsu Comp Ltd 6719 (-46.88) 316.07 Kanebo Limited 3102 (-3409.58) 4163.73 Prime Systems 4830 (-100.79) 130.2 MALAYSIA -------- CSM Corporation Bhd CSM (-8.40) 41.55 Faber Group Bhd FAB (-7.16) 504.98 Kemayan Corp Bhd KOP (-353.12) 84.89 Panglobal Bhd PGL (-41.07) 187.79 Sri Hartamas Bhd SHB (-138.37) 24.48 YCS Corporation Bhd YCS 28.34 160.27 PHILIPPINES ----------- Pilipino Telephone Co. PLTL (-400.56) 115.91 SINGAPORE --------- Pacific Century Regional Developments Ltd PAC (-176.29) 1050.46 THAILAND -------- Asia Hotel PCL ASIA (-26.62) 96.21 Asia Hotel PCL ASIA/F (-26.62) 96.21 Bangkok Rubber PCL BRC (-41.29) 80.14 Bangkok Rubber PCL BRC/F (-41.29) 80.14 Central Paper Industry PCL CPICO (-37.02) 40.41 Central Paper Industry PCL CPICO/F (-37.02) 40.41 Datamat PCL DTM 2.27 17.21 Datamat PCL DTM 2.27 17.21 Jutha Maritime JUTHA (-0.78) 29.03 Jutha Maritime JUTHA/F (-0.78) 29.03 National Fertilizer PCL NFC (-91.34) 293.84 National Fertilizer PCL NFC/F (-91.34) 293.84 Siam Agro-Industry Pineapple And Others PCL SAICO (-14.84) 13.32 Siam Agro-Industry Pineapple And Others PCL SAIC0/F (-14.84) 13.32 Thai Wah Public Company Limited-F TWC (-43.88) 168.15 Thai Wah Public Company Limited-F TWC/F (-43.88) 168.15 Tuntex (Thailand) PCL TUNTEX (-50.94) 398.25 Tuntex (Thailand) PCL TUNTEX/F (-50.94) 398.25 ********* 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, Faith Marie Bacatan, Reiza Dejito, 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 ***