/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/980612.MBXT 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, June 12, 1998, Vol. 1, No. 79 Headlines C H I N A & H O N G K O N G AWT HOLDINGS: Receives Writs from Creditors AUTORICH INVESTMENT: Notice of Creditors' Meeting CA PACIFIC: Clients Line up for Maximum $150,000 Each CHARK FUNG: Appointment of Provisional Liquidators CONETOP LIMITED: Winding-up Notice ENIM OIL: Notice of Members' and Creditors' Meetings HIGH EXPAND DEVELOPMENT LIMITED: Winding-up Notice HONG KONG DRIVERS LIMITED: Winding-up Notice KEE FUNG SING: Appointment of Provisional Liquidators MIDLAND REALTY (HOLDINGS): To Cut Provisions for Bad Debts MING FUNG BULLION: Appointment of Provisional Liquidators NEW UNION WAREHOUSE LIMITED: Winding-up Notice PELHAM GAIN LIMITED: Winding-up Notice PEREGRINE DERIVATIVES: Cash of $403M Sets 20% Dividend SINOAMERICAN TELECOM: Winding-up Notice SUPERFAITH INDUSTRIES LIMITED: Winding-up Notice WING HAI SHIPPING: Members' Voluntary Winding-up WINTON COMMENCE: Appointment of Provisional Liquidators I N D O N E S I A CIKARENG LISTINDO: S&P Raises Fears of Power-Firm Defaults PT GARUDA INDONESIA: To Return Leased Planes J A P A N ASAHI LIFE: Japan Insurers' Assets Shrink $171b CHIYODA LIFE: Japan Insurers' Assets Shrink $171b MEIJI LIFE: Japan Insurers' Assets Shrink $171b SUMITOMO LIFE: Japan Insurers' Assets Shrink $171b K O R E A KOREA APPRAISAL: Sale of State Enterprises to Foreigners KOREA ELEC POWER: Sale of State Enterprises to Foreigners KOREA GAS CORP: Sale of State Enterprises to Foreigners KOREA HEAVY: Sale of State Enterprises to Foreigners KOREA MINING: Sale of State Enterprises to Foreigners KOREA NAT TOURISM: Sale of State Enterprises to Foreigners KOREA TECH BANKING: Sale of State Enterprises to Foreigners M A L A Y S I A C S HIPLA (M) SDN BHD: Winding-up Petition ETIACON CORPORATION (M) SDN BHD: Winding-up Petition KUMPULAN KEMJA SDN BHD: Winding-up Petition MARKA HOLDINGS SDN BHD: Winding-up Petition PEMBINAAN DOHA SDN BHD: Winding-up Petition PERUSAHAAN SAFRIDA: Winding-up Petition PRIYAMAS EXPORT CORPORATION SDN BHD: Winding-up Petition TOP-IN FOOTWEAR (M): Creditors' Voluntary Winding-up THYE YONG HONG CO SDN BHD: Winding-up Petition UNION PAPER HOLDINGS BHD: Plans to Revamp in Rescue Bid VIEWMAX SDN BHD: Winding-up Notice P H I L I P P I N E S PHILIPPINES AIRLINES: To Cut International Operations S I N G A P O R E WESTMONT INDUSTRIES: Restructuring Plan Due in August T H A I L A N D AMATA CITY CO, LTD: Parent Injects Baht 40M Loan MANAGER MEDIA GROUP: Placed in REHABCO Sector by SET ROBINSON DEPARMENT STORE: Suspends Interest Payment TPI POLENE: Statements Do Not Comply THAI MODERN PLASTIC: Placed in REHABCO Sector by SET THAI PETROCHEMICAL: Statements Do Not Comply ================================= C H I N A & H O N G K O N G ================================= AWT HOLDINGS: Receives Writs from Creditors ------------------------------------------- The AWT Holdings Limited, a freight forwarding company in Hong Kong, has posted an announcement in the Hong Kong Stock Exchange that the company has received writs of summaries and letters of demand from various creditors and the maximum exposure amount is aggregate to HK$90 million. Apart from the above claim, Great Mark Investment Group Ltd has issued a writ of HK$10 million against the Group`s subsidiary in respect of the rental. The financial position of the company depends on the outcome of the negotiation of the Group and the creditors regarding the rescheduling of the payment. The Group will probably issued new shares to settle some of the outstanding claims. The company said that they have sufficient capital and does not have a going concern problem. AUTORICH INVESTMENT: Notice of Creditors' Meeting ------------------------------------------------- Hong Kong Standard of June 5 shows notice of the same day that the creditors' meeting of Autorich Investment Limited will be held. CA PACIFIC: Clients Line up for Maximum $150,000 Each ----------------------------------------------------- As reported on the SCMP of June 11, the exchange council approved on June 10 a $150,000 compensation limit for each former client of the above named under a compensation package worth $412 million. All cash clients and margin clients who did not use credit lines between June 1 last year and the broker's default will receive a maximum compensation of $150,000 each. Margin clients who used margin facilities would not get compensation because they traded through the broker's margin finance company which was not covered by the exchange compensation fund. Clients who lost more than $150,000 can make claims for additional compensation from the broker's liquidation process. The package will fully cover 70% of the 5,212 claimants who together claimed a higher than expected $2.4 billion, which is far more than the $1.4 billion in shares calculated by the provisional liquidators to be owed to clients, based on the company's records. SFC chief said the discrepancy might be due to some clients exaggerating losses and some making claims without deducting loans from the firm. CA Pacific has $900 million worth of shares on hand which will be repaid to clients. SFC said the CA Pacific compensation model would be used as a reference for the collapsed Forluxe Securities and Ming Fung Group's Chark Fung Securities. The SFC would seek to change legislation to allow payments to be made in batches rather than waiting for all clamis to be vetted. The government later said it would propose law changes to facilitate the compensation package, including allowing the SFC to contribute part of its reserves to the compensation fund, introducing a per claimant compensation limit and allowing repayment of individual claims after applications were verified. It said the compensation fund would be sufficient to make the repayments but the government would make a loan to top up the fund if it fell below prudent levels. CHARK FUNG: Appointment of Provisional Liquidators -------------------------------------------------- A notice dated June 5, posted on the SCMP of the same date, says that Messrs Nicholas Peter Etches, Gabriel Chi Kok Tam and Alan Chung Wah Tang all of KPMG Peat Marwick, have been appointed Joint and Several Provisional Liquidators of Chark Fund Securities Company Limited by order of the court dated May 26, 1998. CONETOP LIMITED: Winding-up Notice ---------------------------------- A petition for the winding-up of Conetop Limited was on the 21st of May, 1998. It is directed to be heard before the Court on the 24th of June, 1998. ENIM OIL: Notice of Members' and Creditors' Meetings ---------------------------------------------------- Hong Kong Standard of June 5 shows notice dated May 28 that a meeting of members, followed by a meeting of the creditors Enim Oil Company Limited will be held at 28th Floor, Wing On Centre, 111 Connaught Road, Central, HongKong on 22nd June 1998 at 10:15 am and 10:20 am respectively for passing resolution for the appointment of Messrs. Dermot Agnew and Kenneth Kokoon Tan, Certified Public Accountants,of 26th Floor, Wing On Centre, 111 Connaught Road, Central, HongKong as the Joint and Several Liquidators of the comapny and that Mr. David John Jordan shall retire. HIGH EXPAND DEVELOPMENT LIMITED: Winding-up Notice -------------------------------------------------- Notice dated May 26, 1998, posted on the SCMP of June 5 says that by order of the court dated May 20, 1998, Mr Kennic Lai Hang Lui and Lauren Wu Lau of Kennic L H Lui & Co, Certified Public Accountants, have been appointed Joint and Several Liquidators of High Expand Development Limited. HONG KONG DRIVERS LIMITED: Winding-up Notice -------------------------------------------- Hong Kong Standard of June 5 shows notice of the same date for the winding up of the above named company whose registered office is at G/F., 13 Tam Kung Temple Road, Shau Kei Wan, Hong Kong. Date of order: 27th May 1998 Date of presentation of petition: 16th March 1998 KEE FUNG SING: Appointment of Provisional Liquidators ----------------------------------------------------- A notice dated June 5, posted on the SCMP of the same date, says that Messrs Nicholas Peter Etches, Gabriel Chi Kok Tam and Alan Chung Wah Tang all of KPMG Peat Marwick, have been appointed Joint and Several Provisional Liquidators of Kee Fung Sing International Finance Company Limited by order of the court dated May 26, 1998. MIDLAND REALTY (HOLDINGS): To Cut Provisions for Bad Debts ---------------------------------------------------------- Midland Realty (Holdings) expects to make a smaller provision against bad and doubtful debt this financial year due to an expected decline in forfeitures of second homes. After the company's annual general meeting, financial controller Lam Fung-fong said as property prices fell steeply in the second half of last year, a number of buyers chose to forfeit down payments, not to complete the purchase, or had difficulty paying commissions. This combination of factors led Midland Realty to take a $119 million provision for bad and doubtful debts last year. Ms Lam said this year's provision would be smaller as most of the company's clients who bought flats this year were end-users, meaning the chance of a default was reduced. Chairman Freddie Wong Kin-yip said income had to be considered in the context of the property downturn because commission revenues came partly from helping developers sell units in the primary market. Average commission would be about 1.5 to 2 per cent of each purchase, he said. Mr Wong said the firm had no plans to close more of its estimated 160 offices, but did not rule out the possibility in future. MING FUNG BULLION: Appointment of Provisional Liquidators --------------------------------------------------------- A notice dated June 5, posted on the SCMP of the same date, says that Messrs Nicholas Peter Etches, Gabriel Chi Kok Tam and Alan Chung Wah Tang all of KPMG Peat Marwick, have been appointed Joint and Several Provisional Liquidators Ming Bullion Company Limited by order of the court dated May 26, 1998. NEW UNION WAREHOUSE LIMITED: Winding-up Notice ---------------------------------------------- A petition for the winding up of Expert Glory Development Limited by the Administrative Region was on the 13th day of May 1998 presented to the said Court by Omaha Investments Limited whose registered office is situate at 22nd Floor, Hutchison House, No. 10 Harcourt Road, Hong Kong; and by Honest Billion Investment Limited whose registered office is situated at 22nd Floor, South China Building, Nos. 1- Wyndham Street, Hong Kong, and that the said petition is directed to be heard before the Court at 11:00 am on the 17th day of June 1998. PELHAM GAIN LIMITED: Winding-up Notice -------------------------------------- Hong Kong Standard of June 5 shows notice of the same date for the winding up of Pelham Gain Limited, whose registered office is at Flat E, 9th Floor, Hanyee Building, Nos. 19- 21, Hankow Road, Tsimshatsui, Kowloon, Hong Kong. Date of order: 27th May 1998 Date of presentation of petition: 19th March 1998 PEREGRINE DERIVATIVES: Cash of $403M Sets 20% Dividend ------------------------------------------------------ Liquidators of Peregrine Derivatives, a subsidiary of failed securities house Peregrine Investments Holdings, have realised net cash assets of $403 million as at May 31 - sufficient for a 20 per cent payout to creditors. Speaking at a meeting yesterday between former Peregrine directors and creditors, Price Waterhouse partner Stephen Caswell said creditors could expect to be paid a dividend of at least 20 cents in the dollar by this time next year. A maximum payout to creditors of 40 per cent was the auditing firm's "best guess at this time", Mr Caswell said. Peregrine Investments - which acted as group treasurer - is Peregrine Derivatives' biggest creditor, representing about one-third of its total liabilities. Peregrine Derivatives had assets of about $1 billion against liabilities of $2.54 billion, he said. Mr Caswell said those figures assumed a 45 per cent default rate on remaining securities held by the company and no more contingent liabilities. He said the final payout would also depend on the health of some Peregrine debtors, who were also suffering from the Asian financial crisis. Price Waterhouse has collected about $407 million by selling assets, retrieving $92 million from profitable trades and recovering cash Peregrine Derivatives had on deposit with several banks and brokers. It was also revealed that Peregrine Derivatives recorded audited losses of $200 million to November last year, after having earned $54 million during the previous two years. Price Waterhouse was confirmed as the official liquidator yesterday. Mr Caswell said there were a number of issues within Peregrine which still concerned the liquidation team - including the backlog in reconciling inter-company balances, stock borrowing and lending arrangements within the group, proprietary share-trading positions, six outstanding guaranteed Korean equity-linked certificates and 10 outstanding warrant issues. Price Waterhouse is chasing more than 200 transactions involving over 200 counterparties. Price Waterhouse's partner in charge of the Peregrine liquidation, David Hague, confirmed that a forensic auditing team had completed a preliminary report - separate from the Securities and Futures Commission's probe - dealing with the conduct of the investment bank's directors and financial advisers, bank financial controls and events leading up the bank's demise. SINOAMERICAN TELECOM: Winding-up Notice --------------------------------------- The Hong Kong Standard of June 9 shows a notice which says that the Joint and Several Provisional Liquidators of the above named company, John Robert Lees and Desmond Chung Seng Chiong, both of 8th Floor, Hong Kong Club Building, 3A Chater Road, Hong Kong, require creditors of the company to send to them on or before 23rd June 1998 their full names and addresses, particulars of their debts or claims and the names and addresses of their solicitors. SUPERFAITH INDUSTRIES LIMITED: Winding-up Notice ------------------------------------------------ A petition for the winding-up of Superfaith Industries Limited was on the 17th of April, 1998. It is directed to be heard before the Court on the 24th of June, 1998. WING HAI SHIPPING: Members' Voluntary Winding-up ------------------------------------------------ Hong Kong Standard of June 5 shows notice dated the same date about the voluntary winding up of Wing Hai Shipping and Management Enterprises Limited and that creditors are requested to send in particulars about debts and claims on or before June 26. WINTON COMMENCE: Appointment of Provisional Liquidators ------------------------------------------------------- A notice dated June 5, posted on the SCMP of the same date, says that Messrs Nicholas Peter Etches, Gabriel Chi Kok Tam and Alan Chung Wah Tang all of KPMG Peat Marwick, have been appointed Joint and Several Provisional Liquidators of Winton Commence Limited by order of the court dated May 26, 1998. ================= I N D O N E S I A ================= CIKARENG LISTINDO: S&P Raises Fears of Power-Firm Defaults ---------------------------------------------------------- The SCMP of June 11 shows an article of Agence France- Presse which says that Standard & Poor's sounded an alarm on June 10 over the fate of independent power producers in Indonesia, saying it is maintaining a negative credit watch on four of them. The negative watch is said to affect US$980 million in bonds and loans and reflected the increasingly severe uncertainties facing both Indonesia and the specific debt issuing projects. The agency cited as an alarming bell the announcement last weekend by the state-owned electricity company, Perusahan Listrik Negara, that it had cancelled a contract with a locally owned power producer, Cikareng Listindo, due to the company's links to former president Suharto. PT GARUDA INDONESIA: To Return Leased Planes -------------------------------------------- Financially troubled flag carrier PT Garuda Indonesia is to return all its leased aircraft and use only planes it owns itself, the airline's president director Soepandi told Reuters June 10. As around 1,000 protesting workers, including ground staff, flight attendants and pilots in uniform rallied outside the company's headquarters, Soepandi also told the crowd that all relationships with firms associated with the family of former president Suharto would be ended. Garuda is in a perilous financial state. Minister for State-Owned Enterprises Tanri Abeng said earlier this week that the airline had around $200 million in debt with half of this already due. The firm has been hit by the region's economic downturn and the rupiah's plunge against the dollar. Most of the company's costs are in dollars while its income is in rupiah. The protesting workers stressed that they were not on strike and that services were continuing as normal despite their demonstration. They accused Garuda's management of having worsened the airline's financial predicament. ========= J A P A N ========= ASAHI LIFE: Japan Insurers' Assets Shrink $171b ----------------------------------------------- The SCMP of June 10 says that Japan's eight biggest life insurers lost 31 trillion yen or 3.4% of their 919 trillion yen worth of individual insurance and pension fund assets during the year to March. Customers withdrew most funds from those companies believed to be in the worst shape. The biggest loser, Asahi Life, managed a minus 1.45% return. Asahi, Dai-ichi, Meiji, Sumitomo and Yasuda, using US disclosure standards for the first time, revealed they had a combined non-performing debt of 1.7 trillion yen, more than double the amount they previously admitted to. The flow of money out of life insurers, especially those that seem financially weak, was sparked by the collapse in April last year of Nissan Mutual which said its liabilities outstripped assets by 10%. Analysts said some weaker companies might be pushed into the arms of interested buyers. CHIYODA LIFE: Japan Insurers' Assets Shrink $171b ------------------------------------------------- The SCMP of June 10 says that Japan's eight biggest life insurers lost 31 trillion yen or 3.4% of their 919 trillion yen worth of individual insurance and pension fund assets during the year to March. Customers withdrew most funds from those companies believed to be in the worst shape. Chiyoda Life, with 41 trillion yen in assets, lost 12.2% of its policies and pensions during the year. Chiyoda Life now has negative "hidden" stock profits of 108 billion yen. Sumitomo, Mitsui and Chiyoda also have "hidden" losses on their real estate portfolios. Analysts said some weaker companies might be pushed into the arms of interested buyers. This year a subsidiary of General Electric agreed to purchase the sales business of Toho Mutual Life Insurance, while the American International Group said it might buy Aoba Life Insurance, the company that took over the policies of the failed Nissan Mutual Life Insurance. MEIJI LIFE: Japan Insurers' Assets Shrink $171b ----------------------------------------------- The SCMP of June 10 says that Japan's eight biggest life insurers lost 31 trillion yen or 3.4% of their 919 trillion yen worth of individual insurance and pension fund assets during the year to March. Customers withdrew most funds from those companies believed to be in the worst shape. Meiji Life, the only company with a positive spread, managed a return of 0.37%. The flow of money out of life insurers, especially those that seem financially weak, was sparked by the collapse in April last year of Nissan Mutual which said its liabilities outstripped assets by 10%. Analysts said some weaker companies might be pushed into the arms of interested buyers. SUMITOMO LIFE: Japan Insurers' Assets Shrink $171b -------------------------------------------------- The SCMP of June 10 says that Japan's eight biggest life insurers lost 31 trillion yen or 3.4% of their 919 trillion yen worth of individual insurance and pension fund assets during the year to March. Customers withdrew most funds from those companies believed to be in the worst shape. Sumitomo, Mitsui and Chiyoda have "hidden" losses on their real estate portfolios. Asahi, Dai-ichi, Meiji, Sumitomo and Yasuda, using US disclosure standards for the first time, revealed they had a combined non-performing debt of 1.7 trillion yen, more than double the amount they previously admitted to. ========= K O R E A ========= KOREA APPRAISAL: Sale of State Enterprises to Foreigners -------------------------------------------------------- The SCMP of June 9 reports that the cash-strapped government is poised to lure foreign investors back to its fragile markets by selling off up to 12 top state-owned assets. The report said that selling shares in state enterprises to foreigners coincides with the government's policy to revive South Korea's battered economy with the help of foreign capital. KOREA ELEC POWER: Sale of State Enterprises to Foreigners --------------------------------------------------------- The SCMP of June 9 reports that the cash-strapped government is poised to lure foreign investors back to its fragile markets by selling off up to 12 top state-owned assets. The report said that selling shares in state enterprises to foreigners coincides with the government's policy to revive South Korea's battered economy with the help of foreign capital. KOREA GAS CORP: Sale of State Enterprises to Foreigners ------------------------------------------------------- The SCMP of June 9 reports that the cash-strapped government is poised to lure foreign investors back to its fragile markets by selling off up to 12 top state-owned assets. The report said that selling shares in state enterprises to foreigners coincides with the government's policy to revive South Korea's battered economy with the help of foreign capital. KOREA HEAVY: Sale of State Enterprises to Foreigners ---------------------------------------------------- The SCMP of June 9 reports that the cash-strapped government is poised to lure foreign investors back to its fragile markets by selling off up to 12 top state-owned assets. The report said that selling shares in state enterprises to foreigners coincides with the government's policy to revive South Korea's battered economy with the help of foreign capital. KOREA MINING: Sale of State Enterprises to Foreigners ----------------------------------------------------- The SCMP of June 9 reports that the cash-strapped government is poised to lure foreign investors back to its fragile markets by selling off up to 12 top state-owned assets. The report said that selling shares in state enterprises to foreigners coincides with the government's policy to revive South Korea's battered economy with the help of foreign capital. KOREA NAT TOURISM: Sale of State Enterprises to Foreigners ---------------------------------------------------------- The SCMP of June 9 reports that the cash-strapped government is poised to lure foreign investors back to its fragile markets by selling off up to 12 top state-owned assets. The report said that selling shares in state enterprises to foreigners coincides with the government's policy to revive South Korea's battered economy with the help of foreign capital. KOREA TECH BANKING: Sale of State Enterprises to Foreigners ----------------------------------------------------------- The SCMP of June 9 reports that the cash-strapped government is poised to lure foreign investors back to its fragile markets by selling off up to 12 top state-owned assets. The report said that selling shares in state enterprises to foreigners coincides with the government's policy to revive South Korea's battered economy with the help of foreign capital. =============== M A L A Y S I A =============== C S HIPLA (M) SDN BHD: Winding-up Petition ------------------------------------------ Sunshine Construction Sdn Bhd (petitioner) has on 21/4/98 petitioned for the winding-up of C S Hipla (M) Sdn Bhd (respondent). Hearing was set on 7/8/98. ETIACON CORPORATION (M) SDN BHD: Winding-up Petition ---------------------------------------------------- Chew Sien Chee & Co. (petitioner) has on 30/5/98 served a notice of winding-up against Etiacon Corporation (M) Sdn Bhd (respondent). Date of hearing has been set on 23/6/98. KUMPULAN KEMJA SDN BHD: Winding-up Petition ------------------------------------------- Lembaga Kemajuan Pahang Tenggara (petitioner) petitioned for the winding-up of Kumpulan Kemja Sdn Bhd (respondent) on 22/4/98 over a debt of RM87,730. Kumpulan Kemja Sdn Bhd has a paid-up capital of RM87,481. Hearing was set on 1/9/98. MARKA HOLDINGS SDN BHD: Winding-up Petition ------------------------------------------- Perwira Affin Bank Bhd (petitioner) has on 23/4/98 petitioned for the winding-up of Marka Holdings Sdn Bhd (respondent). Hearing was set to be on 24/6/98. PEMBINAAN DOHA SDN BHD: Winding-up Petition ------------------------------------------- Lembaga Kemajuan Pahan Tenggara (petitioner) has petitioned for the winding-up of Pembinaan Doha Sdn Bhd (respondent) on 22/4/98 for a debt of RM160,970. The respondent has a paid up capital of RM200,000. The petition has been set to be heard on 1/9/98. PERUSAHAAN SAFRIDA: Winding-up Petition --------------------------------------- Lembaga Kemajuan Pahang Tenggara (Petitioner) has petitioned for the winding-up of Perusahaan Safrida Sdn Bhd (Respondent) on 22/4/98 over a debt of RM166,755. Perusahaan Safrida Sdn Bhd has a paid-up capital of RM150,000. Hearing was set on 1/9/98. PRIYAMAS EXPORT CORPORATION SDN BHD: Winding-up Petition -------------------------------------------------------- Gan Seng Biang (Petitioner) on 28/3/98 petitioned the winding-up of Priyamas Export Corporation Sdn Bhd (respondent). Hearing was set on 31/7/98. TOP-IN FOOTWEAR (M): Creditors' Voluntary Winding-up ---------------------------------------------------- The creditors of Top-in Footwear (M) Sdn Bhd, on 3/6/98 appointed a liquidator to wind-up the company. All creditors were given up to 11/7/98 to submit their claims. THYE YONG HONG CO SDN BHD: Winding-up Petition ---------------------------------------------- Song Bok Seng Sdn Bhd (Petitioner) has on 2/6/98 served a winding-up petition against Thye Yong Hong Company Sdn Bhd, Kee Khew (KL) Sdn Bhd and Cheng Thai Sdn Bhd (respondents). UNION PAPER HOLDINGS BHD: Plans to Revamp in Rescue Bid ------------------------------------------------------- Union Paper (listed in the KLSE) has proposed a restructuring scheme involving disposal of existing loss- making businesses and acquisition of income generating assets. It believes the scheme would provide immediate opportunity and strong contributions to the group. The group engaged in manufacturing and trading paper products, has been incurring losses since the year ended 31/8/94. The group also intends to change its core business to oil palm, cocoa cultivation, timber extraction, and road and bridge maintenance. VIEWMAX SDN BHD: Winding-up Notice ---------------------------------- Members of Viewmax Sdn BHd has on 28/5/98 resolved to liquidate the company. Creditors are given up to 5/7/98 to admit their claims against the company. ===================== P H I L I P P I N E S ===================== PHILIPPINES AIRLINES: To Cut International Operations ----------------------------------------------------- Philippine Airlines (PAL) announced Wednesday it would sharply cut international operations and sell or lease several of its aircraft after sacking 620 pilots who mounted a crippling six-day strike, reports Agence France- Presse June 10. PAL said in a statement it would instead expand its domestic services, deploying its long-haul aircraft to more lucrative local routes. PAL declared the six-day-old strike over and said the dismissal of the striking pilots was final. It had earlier said it was hiring permanent replacements. "The strike is over and a downsized PAL emerges from the ... illegal walkout of the 625-stong Airline Pilots Assocation of the Philippines," the loss-making airline said in a statement. The airline said it was losing about 200 million pesos (5.1 million dollars) a day from the strike. PAL posted a record net loss of 8.08 billion pesos (200 million dollars) in the year to March. It took on a heavy debt load partly to finance a four billion dollar, 36-plane refleeting program begun in 1996. ================= S I N G A P O R E ================= WESTMONT INDUSTRIES: Restructuring Plan Due in August ----------------------------------------------------- An article in the Business Times of June says Westmont Industries Bhd (WIB) and its wholly-owned subsidiary Sabah Shipyard Sdn Bhd (Saship) will present the details of its restructuring proposals to the High Court August 29. Creditors of the group are expected to vote on the proposals on the same day. Group director Datuk Jaffar Indot told reporters he is "reasonably confident" the group's creditors will support the proposed restructuring plan, given the encouraging feedback. Westmont Industries and Sabah Shipyard owe creditors about RM970 million. Of the amount, WIB owes RM66.49 million, of which RM61.09 million is due to unsecured creditors which include financial institutions, RM869,000 to partially- secured creditors and RM4.88 million to unsecured general creditors, including hire-purchase and leasing companies. Saship's debt amounts to RM907.3 million, including RM197.91 million owed to WIB and a provision of RM312 million for bad debts. The proposals will be binding on all WIB's creditors if it is approved by 75 per cent of the creditors in terms of value and 50 per cent in the number of each class of creditors, said Jaffar. The proposed settlement involves a cash payment, a debt- equity conversion into new shares in WIB, and a moratorium on debt. WIB posted a pre-tax loss of RM664.79 million on a turnover of RM376.61 million. Group loss after tax stood at RM715.58 million. =============== T H A I L A N D =============== AMATA CITY CO, LTD: Parent Injects Baht 40M Loan ------------------------------------------------ The Bang Pakong Industrial Park 2 Public Company Limited would like to announce that the Board of Directors Meeting No. 2/1998 held on May 19, 1998 passed resolutions concerning a connected transaction on June 9. Amata City Co., Ltd., a subsidiary in which the Company holds 71.5% of the registered capital of Baht 300 million. The Board was resolvedto render loan to Amata City Co., Ltd. to help lessen the cash flow problem of Amata City in short-term. Total value of the assistance is Baht 40,000,000. This is considered a connected one as there is connected persons. The size of transaction is equivalent to 1.81% of NTA. MANAGER MEDIA GROUP: Placed in REHABCO Sector by SEC ---------------------------------------------------- The Stock Exchange of Thailand (SET) has established a policy to place long suspended listed companies in a special sector called Companies Under Rehabilitation sector or REHABCO. This sector comprises either listed companies facing the possibility of delisting according to the SET's regulations or those firms which are in the rehabilitation process. The Stock Exchange of Thailand (SET) is to expand the ceiling and floor limits for the common stock of Manager Media Group Public Company Limited (MGR). This is because it has been suspended for more than 15 consecutive days. Therefore, according to Clause 21 (2) and (5) of the regulation on trading, clearing and settlement for listed securities 1998, the ceiling and floor limits for MGR shares on the main board will be expanded from the regular + 30% to +100% of their last trading prices (Bt2.90). The new limits will be in effect on JUNE 15, 1998. ROBINSON DEPARMENT STORE: Suspends Interest Payment --------------------------------------------------- Robinson Department Store PLC, the second largest department store in Thailand, has suspended payment of interest and principal on 6.8 billion yen (US$48.5 million) of floating-rate notes due in 2000. The Thai retailer, in a statement to the Stock Exchange of Thailand said that it won`t resume payment for six months until it completes a financial restructuring plan. It also said that it will suspend payments on other debts though it didn't identify those obligations. The company gives no explanation for its decision but assured that the company is in sound condition to continue its operation its business operation. TPI POLENE: Statements Do Not Comply ------------------------------------ Referring to the reviewed consolidated financial statements for the period ending 31 March 1998 filed by TPI Polene Plc. (TPIPL), the auditor's report paragraph 4 states: "As further explained in Note 1, events of postponement have occurred on all long-term debt, which enables lenders to declare their debts due and payable, and to demand immediate repayment. Generally accepted accounting principles require that all such debt be shown as current on the balance sheet. Debt in the amount of Baht 25.57 billion has not been so reclassified". The SET has asked the company to rectify the situation within 30 days or by 10 July 1998. The SET, therefore, cautions shareholders and investors to carefully consider TPIPL's full financial statements and expect a revised version. THAI MODERN PLASTIC: Placed in REHABCO Sector by SET ---------------------------------------------------- The Stock Exchange of Thailand (SET) has established a policy to place long suspended listed companies in a special sector called Companies Under Rehabilitation sector or REHABCO. This sector comprises either listed companies facing the possibility of delisting according to the SET's regulations or those firms which are in the rehabilitation process. THAI PETROCHEMICAL: Statements Do Not Comply -------------------------------------------- Referring to the reviewed consolidated financial statement for the period ending 31 March 1998 filed by Thai Petrochemical Industry Pcl. (TPI), the auditor's report paragraph 4 states: "As further explained in Note 1, events of postponement have occurred on all long-term debt, which enables lenders to declare their debts due and payable, and to demand immediate repayment. Generally accepted accounting principles require that all such debt be shown as current on the balance sheet. Debt in the amount of Baht 68.9 billion has not been so reclassified". The SET has asked the company to rectify the situation within 30 days or by 10 July 1998. The SET, therefore, cautions shareholders and investors to carefully consider TPI' full financial statements and expect a revised version. 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., Princeton, NJ USA, and Beard Group, Inc., Washington, DC USA. Debra Brennan and Lexy Mueller, Editors. Copyright 1998. All rights reserved. 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 $875 per month 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 301/951-6400. * * * End of Transmission * * *