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/raid1/www/Hosts/bankrupt/TCRAP_Public/000505.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, May 5, 2000, Vol. 3, No. 88 Headlines * A U S T R A L I A * BHP: HBI to be billion dollar write-off MITSUBISHI AUSTRALIA: Union concerned over job cuts * C H I N A & H O N G K O N G * CHENGDU TELECOMM.CABLE CO.: Reports net loss for 1999 HUTCHISON WHAMPOA: Facing S&P credit rating downgrade PEREGRINE INVESTMENT HLDGS: Probe results to stay closed RANK HOPE LTD: Facing winding up petition * I N D O N E S I A * PT ASTRA INT'L: CCL said to be eyeing bigger Astra stake PT ASTRA INT'L: High hopes for debt repayment PT BANK CENTRAL ASIA: Saudi investors eyeing stake * J A P A N * KYOEI LIFE INSURANCE: Falls foul of low rates SEKISUI HOUSE LTD.: To eliminate debt in 5 years * K O R E A * DAEWOO MOTORS CO.: Workers return to plant, end strike DAEWOO SECURITIES: Korea Development Bank likely for stake HYUNDAI INVEST.TRUST: IMF suports Gov't's `no bailout' HYUNDAI INVEST.TRUST: Parent to put up collateral HYUNDAI INVEST.TRUST: FSS tabs rehab plan as `best' NARA INVEST.BANKING CORP.: FSC cancels license SAMMI SPECIAL STEEL: Inchon Steel set to take over * M A L A Y S I A * TIME dotCOM: Ministry has no objection to SingTel bid TIME ENGINEERING: To consider Sapura bid * P H I L I P P I N E S * ASB GROUP: Seeks rehabilitation,debt payments suspension EEI CORP.: Posts net loss MONDRAGON INT'L PHILIPPPINES: Losses down to P995M in '99 URBAN BANK: Still no buyers for its investment arm URBAN BANK: Banque Nationale de Paris shows interest URBAN BANK: Major account holders want to own it URBAN BANK: BSP to investigate P450M loan to Puerto Azul WESTMONT INVEST.CORP.: Pearlbank dares to open books to SEC * T H A I L A N D * iTV: SCB agrees on payment of iTV fees; 3 bidders eyeing INT'L ENGINEERING PCL: Debentures to be delisted NATURAL PARK PCL: Applying for rehab under bankruptcy act ROBINSON DEPT.STORE: Reports progression of rehab to SET SIAM SYNTECH CONSTRUC.: Reports debt rehab progress to SET ================= A U S T R A L I A ================= BHP: HBI to be billion dollar write-off --------------------------------------- Resources giant BHP is biting the bullet on its troublesome Hot Briquetted Iron (HBI) plant in Western Australia. It has written off the remaining $1.1 billion dollar carrying value of the HBI plant in its latest quarterly results. The write-off follows continuing commissioning difficulties at the plant, which converts iron ore into iron briquettes for steelmaking. BHP describes the performance of the plant as extremely disappointing and a decision on the future of the operation is expected at the end of the year. The write-off has contributed to a loss after tax and abnormals of $46 million in the March quarter. However, excluding abnormals the company has achieved a quarterly operating profit of $558 million dollars - the biggest in its 115-year history. (ABC New Online 04-May- 2000) MITSUBISHI AUSTRALIA: Union concerned over job cuts --------------------------------------------------- The Manufacturing Workers Union is concerned that the real impact of cuts to blue collar workers at the Mitsubishi plants in Adelaide has been understated. Last month, the car maker announced it would cut 600 positions in an effort to bring its Adelaide plants to the break-even point, saying most of the jobs would be in clerical and managerial areas. However, union state president Ian Curry says up to 200 of the job cuts could be classed as "blue collar." He says workers have been meeting this week to discuss a log of claims over the redundancies. (ABC News Online 04-May-2000) ============================== C H I N A & H O N G K O N G ============================== CHENGDU TELECOMM.CABLE CO.: Reports net loss for 1999 ----------------------------------------------------- Chengdu Telecommunications Cable Co. reported a net loss of 103.2 million yuan ($12.5 million) in 1999, compared with a restated net profit of 12 million yuan the previous year. The maker of telecommunications cables and related equipment attributed the decline in earnings mainly to intense competition in the industry, which resulted in significant decline in the gross profit margins of key products. Owing to external factors, the company also lost a part of its market, leading to a sharp decrease in orders, it said. Chengdu Telecom said it plans to increase its overall technology content and get more involved in electronic- commerce. It will also sell more of its foreign investments and dispose of unprofitable associated companies that have no development prospects. Associated companies contributed a loss of 36.2 million yuan to the group's earnings in 1999, compared with a profit of 42.4 million yuan the previous year. Chengdu Telecom's sales fell to 336.9 million yuan from 484.1 million yuan, while gross profit, or revenue excluding the cost of sales, fell to 46.5 million yuan from 120 million yuan. This led to a narrowing of the gross profit margin to 14% from 25%. (The Asian Wall Street Journal 03-May-2000) HUTCHISON WHAMPOA: Facing S&P credit rating downgrade ----------------------------------------------------- Hutchison Whampoa is facing a credit rating cut from United States rating agency Standard & Poor's (S&P) because of concerns about its substantial upfront investment I Europe's third-generation mobile phone market. S&P yesterday placed Hutchison's A rating for foreign and local currency on credit watch with negative implications. The company last week won one of five 3G licences on offer in Britain. S&P has never rated Hutchison lower than A. S&P said it was concerned the heavy costs of licence fees, network development and operating costs would have a negative impact on Hutchison. "There is a high degree of uncertainty regarding the future profitability and cash generating ability of 3G networks," it said. PEREGRINE INVESTMENT HLDGS: Probe results to stay closed -------------------------------------------------------- The findings of a 10-month probe into the Peregrine Investments Holdings collapse may not be disclosed to the public or, if they are, may be heavily censored. Legal advice is being sought on whether the report by independent inspector Richard Farrant should be completely withheld from the public domain, or whether only part of the document should be released. "The Financial Secretary may decide to publish part or the whole of the report," a government official said yesterday. "We haven't made a decision, it depends on the advice of the Department of Justice." The report - funded by taxpayers - will give an account of the events leading to the group's spectacular crash in January 1998, identify any misconduct and give recommendations on appropriate action to be taken. In the past the government has banned publication of inspectors' reports, fuelling speculation that the most damning details are kept secret. More than 200 pages were cut from John Lees' report on the 1990 takeover of the World Trade Centre Group. Critics feared the most incriminating sections had been censored to protect certain people. The missing chapters were released in July following mounting pressure for government transparency in high-profile corporate cases and the acquittal of five accused, including former stockbroker Arthur Lai Cheuk-kwan. Any decision to prosecute in the Peregrine case would probably not be forthcoming in the near future, said a senior Department of Justice official. At this stage, the department would pick through the report and identify any areas of possible criminality. The department would assess if there was "evidence which would provide at least a starting point for a criminal charge or criminal investigation", he said. "My guess is that we would probably be a long way from a prosecution - or a decision to prosecute - assuming there is any criminality. The techniques available to the Financial Secretary are very different from those available to commercial crime people," he said. A financial inspector conducting interviews with people linked to a case, could force answers. However, if they protested, the evidence was useless should the case come to trial. Blockbuster corporate cases are relatively few and far between in Hong Kong, and convictions difficult to win. The Peregrine report by Mr Farrant - former chief operating officer of Britain's Financial Services Authority - was expected to focus on the firm's disclosure of information, directors' responsibilities and its internal-control system. During and before October 1997 Peregrine was rumoured to be in financial strife. The board, however, issued an announcement on October 27 quashing the rumours and reaffirming the firm's financial health. A winding-up petition was presented to the High Court in January the following year. In terms of criminality, it is difficult to hold directors liable for negligent acts or omissions. A civil case has nevertheless been launched by Cheeroll - a company within the Sun Hung Kai Group - against former Peregrine directors, including Philip Tose. Cheeroll is alleging it lost HK$27 million as a result of two sets of Peregrine statements aimed at reassuring shareholders. Another pivotal area of Mr Farrant's investigation was expected to be the US$265 million loan to Indonesian taxi company Steady Safe that led to Peregrine's collapse, and to determine whether there was any malpractice. (South China Morning Post 04-May-2000) RANK HOPE LTD: Facing winding up petition ----------------------------------------- The High Court of Hong Kong SAR, Court of First Instance, has scheduled a hearing for May 31 on the petition of Yeung Kwong Fai for the winding up of Rank Hope Limited. A notice of legal appearance must be filed on or before May 30. ================= I N D O N E S I A ================= PT ASTRA INT'L: CCL said to be eyeing bigger Astra stake -------------------------------------------------------- Barely five weeks after becoming Astra International's single largest shareholder, Singapore-listed motor and property group Cycle & Carriage Ltd (CCL) is reportedly seeking to raise its stake in the Indonesian conglomerate. The Singapore Business Times, quoting reliable sources, said CCL hoped to buy up US$50mil worth of Astra shares to increase its stake to 30% from the current 23%. If successful, the move would take CCL's investment in Astra to US$360mil. According to the report, CCL is likely to buy the additional shares from a party or parties within the consortium that it led to secure a foothold in the Indonesian group in late March. CCL's investment in Astra is largely financed by Standard Chartered Bank. It is reportedly now waiting for consortium member Bhakti Investama to repay US$40mil it helped bridge in the payment to Astra at end-March. Asked about the reported CCL move, a top executive said "it may not happen," but did not deny that the company was keen on upping its interest in Astra, adding that it would know "very soon" if its purchase would materialise. Market watchers are generally bullish on the move, citing Astra's better-than-expected results and prospects for Indonesian vehicle sales. Indeed, some buyers of Astra's newly-launched Toyota Soluna will have to wait till next year to get their cars. The latest news came on the heels of no fewer than seven key acquisitions and investments by CCL in the past 12 months. The aggressiveness and speed of its purchases have been linked to its impending loss of a part of its lucrative Mercedes-Benz business. Come Jan 1, 2001, DaimlerChrysler will assume its own wholesale and import functions in Singapore. (The Star 04-May-2000) PT ASTRA INT'L: High hopes for debt repayment --------------------------------------------- PT Astra International - Indonesia's biggest car-maker - should be able to meet its foreign debt repayments this year without additional funding, as demand rises at home and abroad. Car and car parts exports would rise 20 to 30 per cent this year, said Astra president director Theodore Rachmat, without giving a dollar value. The shipments, to neighbouring markets, would generate extra foreign currency, allowing Astra to avoid asset sales to meet debts, he said. In March, a consortium led by Singapore's Cycle & Carriage bought a 40-per-cent stake in Astra from the Indonesian Bank Restructuring Agency. Astra renegotiated its debts last year after the country's worst recession in decades pummelled demand for vehicles. Singapore's Business Times yesterday reported that Cycle & Carriage wanted to increase its stake in Astra to 30 per cent from 23 per cent. Astra exported 9,482 cars in the first quarter - 54 per cent more than the same period last year. Exports account for about 30 per cent of the revenue netted by Astra's car divisions, including parts and assembled vehicles. Mr Rachmat said the car divisions should grow faster than the company's overall shipments abroad, which are expected to lift by 10 to 15 per cent this year. Astra's car sales, which include domestic and exported Toyota, Isuzu and Daihatsu vehicles, were 34,079 units in the first quarter, more than double the 15,203 sold in the first quarter of last year. Astra's vehicle divisions last year contributed 76 per cent of its profits, up from about 50 per cent in 1998, when sales throughout the region shrank, said Ferry Wong, Jakarta-based analyst with BNP Prime Peregrine. That will probably rise to 80 per cent this year, he said. Analysts expect sales would be helped by the release of at least three new models this year. While the company is not under pressure to sell off assets, it may reduce its involvement in some businesses. For instance, it is in talks with Japan's Honda to sell part of its stake its motorcycle joint venture, Honda Federal Motors. "If the Honda deal materialises, that would just be a bonus," Mr Rachmat said. Some sales might be on the cards, with Astra still needing cash to meet its debt repayments, said Tejinder Sandhunr, head of research with HSBC Securities Indonesia. It owes as much as US$1.25 billion in both foreign and domestic loans. (South China Morning Post 04-May-2000) PT BANK CENTRAL ASIA: Saudi investors eyeing stake -------------------------------------------------- Investors from Saudi Arabia are interested in buying a stake in PT Bank Central Asia from the Indonesian Bank Restructuring Agency (IBRA), Foreign Minister Alwi Shibab said at an investors' forum. "(A) funding agency from Saudi Arabia was involved in a three-hour talk with government officials, including IBRA, to get more information about BCA, especially the financial condition of the bank," Shihab said. "There is no result so far but the negotiations will continue." He said the move is part of a wider interest among Gulf countries to invest in Indonesia. (AFX News Limited 04- May-2000) ========= J A P A N ========= KYOEI LIFE INSURANCE: Falls foul of low rates --------------------------------------------- A struggling life insurer is in tie-up talks with Prudential Insurance but has denied a capital injection had been agreed on. Prudential is reported ready to inject as much as 100 billion yen (about HK$7.15 billion) into Kyoei Life Insurance to shore up its financial base. Prudential would own two-thirds of Kyoei Life with the purchase of 100 billion yen in new shares, turning the Japanese insurer into its subsidiary, the Nihon Keizai Shimbun said. The two aim to reach a basic agreement by the end of this month, it said. Kyoei Life said it was talking with Prudential but declined to confirm the report. "We have been in a close relationship with the US life insurer Prudential and our talks on a tie-up have progressed," Kyoei Life said. "But currently nothing substantial has been decided and we will make an announcement in due course." Like Dai-Ichi Mutual Fire and Marine Insurance, which collapsed on Monday, Kyoei Life is struggling to make profits under the "zero rate" monetary policy implemented by the Bank of Japan since February last year. Under the ultra-low interest rates, Kyoei Life is losing about 70 billion yen a year as it is paying out higher returns guaranteed to policyholders than it is receiving from its investments, the report said. The company's solvency margin, a yardstick to measure an insurer's ability to pay out its obligations in the event of a disaster or unforeseen loss, stood at a positive 343 per cent at the end of March last year. Although the margin exceeds the positive 200 per cent level considered the minimum for sound insurance management, the business daily said the level was "low overall" without elaborating. (South China Morning Post 03-May-2000) SEKISUI HOUSE LTD.: To eliminate debt in 5 years ------------------------------------------------ Sekisui House Ltd. (1928), Japan's top home builder, is working to strengthen its financial standing. The Nihon Keizai Shimbun recently interviewed President Isami Wada about his firm's financial strategy. Q: Sekisui recorded an extraordinary loss of 216.5 billion yen in the business year ended January 2000 due to revaluation of real estate held for resale. Can you tell us more about this charge? A: The loss was greater than the 190 billion yen we projected last September because land prices continued falling after the announcement. Besides, landholdings for sale, from among liquid assets, was not the only category that we reappraised. We also recalculated values for land classified as nonperforming within fixed assets and advance payments classified as liquid assets. As a result, the combined value of liquid assets, fixed assets and advances totaled 360.4 billion yen at the end of the year, down 42%. The operating environment is changing so rapidly that we decided to finish our preparations for market value-based accounting in one go. Q: How about the shortage of reserves for retirement payments? A: We will take an extraordinary loss of 30 billion yen in the year through January 2002 to eliminate the shortage. A discount rate of 3% will be assumed for our calculations. Q: The company is saddled with a huge volume of interest- bearing debt? Can you comment on that? A: The balance of such debt outstanding totaled 308.2 billion yen at the end of January. We will bring it to zero by January 2006 using cash and equivalents, of which we had some 284.4 billion yen at the end of January, and annual cash flow. We will also consider buying back shares for retirement. Q: Could you discuss the earnings outlook? A: As the disposal of appraisal losses on landholdings will help to improve our gross profit ratio, we expect pretax profit to rise 42% this year to 90 billion yen, which would be our first record in nine years. We hope to lift it further to 120 billion yen within four or five years. Sales are targeted at 1.4 trillion yen within four or five years, up nearly 200 billion yen from the year ended January 2000. We are improving customer service in order to realize that goal. As one example, we have not changed prices on single-family homes despite adding insulating sashes from February. We will also work to enhance the ability of our sales team. Q: Which management measure do you focus on? A: We put greatest weight on the ratio of pretax profit to total liabilities and net worth. We will raise this to 10% in four to five years, from 4.4% in the year ended January, by boosting pretax profit and shrinking assets. Total assets will be brought down to 1.2 trillion yen over the same time span through debt reduction and other means, from an average of 1.43 trillion yen for the year ended January. (Nikkei 02-May-2000) ========= K O R E A ========= DAEWOO MOTORS CO.: Workers return to plant, end strike ------------------------------------------------------ Thousands of workers at ailing Daewoo Motor Co.'s main plant reported to work Tuesday, ending a week-long strike, company officials said. Some 2,700 dayshift workers at the car maker's plant in Bupyong, 30 kilometers west of Seoul, returned to assembly lines after management agreed to discuss their grievances. About 1,000 nightshift workers also reported to work later Tuesday, both the management and union said. The Daewoo workers walked off their jobs last Tuesday to protest a dawn raid by police who arrested 20 labor activists. All but four were later released. Those under arrest included Chu Young-ho, the top union leader and organizer of the strike that was outlawed by the government. The raid followed more than two months of partial or full-scale strikes at the main plant, called to oppose the planned sale of the auto company to a foreign investor. The walkouts affected only Daewoo's main plant, which has an annual capacity of 500,000 cars. A second Daewoo plant on the nation's central west coast with an annual capacity of 300,000 cars stayed open. One of the union's major grievances is the plan by creditors to sell the ailing auto firm to a foreign investor. General Motors Corp. and Ford Motor Co. are reportedly the front-runners in international bidding for Daewoo. (The Asian Wall Street Journal 03-May-2000) DAEWOO SECURITIES: Korea Development Bank likely for stake ---------------------------------------------------------- Korea Development Bank is most likely to win a 22 pct stake in Daewoo Securities Co Ltd offered by creditors, the Maeil Business Newspaper reported, quoting a bank official and sources from the Financial Supervisory Service. It said KDB is perceived to be most actively studying the terms offered by creditors for the 22 pct stake. "(KDB) is considering becoming a diversified financial company after taking over Daewoo Securities, or resell it later on," a senior FSS official was quoted as saying. He said the acquisition price is estimated at 900 bln won, including about 150 bln for taking on 31 mln unsubscribed shares of Daewoo Securities. One official at the Financial Supervisory Service (FSS) said Wednesday that KDB and several other creditor banks of Daewoo Securities, including the Housing & Commercial Bank and Kookmin Bank, have expressed interest in taking over the brokerage firm, which is one of the nation's largest. The state-run KDB is, however, the front-runner as it is the only bank that has shown willingness to take over Daewoo Securities' loan assets, including W1.2 trillion provided to other Daewoo subsidiaries. Sources say KDB is thinking of making the takeover through the purchase of about 30.98 million unsubscribed shares of Daewoo Securities at face value, which would give it managerial rights, with a plan to eventually sell off Daewoo after normalizing its operations. A total of 61 local banks and financial institutions already own a 33% stake of Daewoo Securities as at the end of March. (AFX News Limited, Digital Chosun 03-May-2000) HYUNDAI INVEST.TRUST: IMF suports Gov't's `no bailout' ------------------------------------------------------ The International Monetary Fund (IMF) said yesterday that it would object to the injection of public funds in order to rescue the ailing Hyundai Investment Trust and Securities. David Coe, senior IMF representative in Korea said during an interview, "The Korean government should be extremely cautious not to set a wrong precedent," by providing public funds for the key financial arm of Hyundai Group without holding its major shareholders responsible for losses. "To the extent that investors suffer losses because of malfeasance on the part of an ITC, it seems appropriate that the ITC and its major shareholders are held responsible for the losses," he said. He said the Hyundai Investment case reflects that it didn't act in the best interest of investors as it is supposed to. Coe said his understanding of the government's handling of the case is that the government is not considering using public money to bail out Hyundai Investment Trust and may try to help it through loans and other types of financing, summing this up as "an appropriate position." As to the transactions from trust accounts to proprietary accounts of Hyundai Trust and Investment to the tune of 3.2 trillion won, widely seen as a key stranglehold on the firm's liquidity flow, the IMF representative said that as clearly stated in the agreement between the government and IMF, this illegal practice should be stopped and the government should enforce relevant regulations as stipulated. "I expect the Korean government will enforce relevant regulations," he said, commenting on reports that it would ask for a waiver of its program agreed to with the IMF on the resolution of loans from trust accounts to proprietary accounts of Hyundai Investment Trust by the end of the year. He said that it would be unusual for the government to make such a request and, should it be made, it could be dealt with during Korean government-IMF consultations next month, stressing that the Korean government has not approached him on this issue. As to the consequences of the Hyundai Investment Trust case, he denied the possibility that it might trigger another crisis, saying that Korea had its foreign reserves depleted in 1997 and now has more than $80 billion in reserve. "The ongoing case lacks the systematic failure that caused the 1997 financial crisis." Coe said that Hyundai has not improved corporate governance norms as much as expected, contributing to its present troubles. "But I don't think the analogy between Hyundai and Daewoo is valid." Daewoo Group, once the country's second largest chaebol, collapsed and is in the process of being dismantled under a debt workout program, a mountain of debt being one of the key reasons for its demise. (The Korea Times 03-May-2000) HYUNDAI INVEST.TRUST: Parent to put up collateral ------------------------------------------------- Hyundai Group said that its chairman Chung Mong-hun and other Hyundai companies will put up their holdings of three unlisted subsidiaries worth some 1.7 trln won as collateral to cover losses at Hyundai Investment Trust & Securities Co Ltd. Chairman Chung will offer 9,816 shares in Hyundai Information Technology Co Ltd and 1,773,311 shares in Hyundai Logistics Co Ltd, it said. Other Hyundai companies will put up their holdings in Hyundai Information Technology Co Ltd, Hyundai Logistics Co Ltd and Hyundai Autonet after the three unlisted companies are registered on KOSDAQ, it said. (AFX News Limited 04-May-2000) HYUNDAI INVEST.TRUST: FSS tabs rehab plan as `best' --------------------------------------------------- Head of the standing committee of the Financial Supervisory Commission, Dong-soo Kim, said Hyundai Group's restructuring plan for unit Hyundai Investment Trust & Securities Co Ltd was the "best under the current circumstances". "The plan is reliable because the collateral worth 1.7 trln won that the group has put up can be used in case the financial restructuring plan pursued by Hyundai Investment Trust fails," he said. "In to my opinion, Hyundai will be able to complete the normalization of the (investment trust unit's) operations by the end of the year. "FSS will consider the roll-over of 3.28 trln won in loans owed by the investment trust company later this year in consultations with the IMF if Hyundai makes such a request. However, given Hyundai's ample liquidity, it may not be necessary", he added. (AFX News Limited 04-May-2000) NARA INVEST.BANKING CORP.: FSC cancels license ---------------------------------------------- The Financial Supervisory Commission yesterday canceled Nara Investment Banking Corp.'s business license. The FSC said it has revoked Nara's license because it has been unable to come up with a viable plan to resolve its insolvency. The financial watchdog suspended Nara's operations in January following its inability to pay cash to its customers. The company was irrevocably damaged by the fallout from the Daewoo Group debacle. Nara Investment suffered losses by intermediating the provision of call loans by Daehan Investment Trust Corp. to Daewoo units. When Daewoo went belly up, the burden to pay back the call loan fell on Nara, throwing it into insolvency. Nara's capital adequacy ratio was estimated at minus 7.1 percent at the end of 1999, including losses from Daewoo Group bonds. (The Korea Herald 04-May-2000) SAMMI SPECIAL STEEL: Inchon Steel set to take over -------------------------------------------------- Hyundai Group affiliate Inchon Steel (KSE: 04020) would take over the insolvent Sammi Special Steel for 60 billion won ($ US54 million), industry sources said Wednesday. Inchon Steel also agreed to assume debts worth 400 billion won in addition to the cash payment under the terms for the sale hammered out with the Korea Asset Management Corp. (KAMCO). An official contract is expected to conclude Thursday with a public announcement of the deal due following the signing. The sources said Sammi's debts were around 1 trillion won but a large part of them would be written off, with Inchon Steel taking over about 400 billion won. (Asia Pulse 03- May-2000) =============== M A L A Y S I A =============== TIME dotCOM: Ministry has no objection to SingTel bid ----------------------------------------------------- The Energy, Communications and Multimedia Ministry has no objection to Singapore Telecommunications Ltd's (SingTel) bid for a stake in Time dotCom Bhd as long as it conforms to existing policy. "We do not have any stand on the deal. We are leaving it as a commercial decision between those companies," its minister Datuk Leo Moggie said after addressing a technology conference in Sungai Besi yesterday. He added, however, that the issue of national security was relevant and would be taken into account. "We will take that into account but not as an isolated case. We have to look at it from a total perspective. Until we study the proposal, we won't make a decision," he said. Moggie also said the ministry, which would approve any deal for Time from a licensing standpoint, had no opinion as to whether Sapura Telecommunications Bhd or SingTel should be prefered in their bids for Time dotCom. Time Engineering Bhd and Sapura Commenting on the departure of Datuk Mohamad Said Mohamad Ali as Telekom Malaysia Bhd chief executive effective May 1, Moggie said there was no reason other than the fact that his term had expired. "Datuk Mohamad Said has done a good job as chief executive and he has helped stabilise the company," he added. Moggie said the choice of Dr Khir Md Abdul Rahman as the new Telekom chief executive fitted well into the changing telecommunications industry which was headed towards a convergence of services. "It is not enough to be just a network company," said Moggie, adding that a traditional telco had to become a full service provider nowadays. "Khir has a history in computing and information technology, and this is important for the company and the industry," he added. (The Star 04- May-2000) TIME ENGINEERING: To consider Sapura bid ---------------------------------------- Time Engineering Bhd will consider the Sapura group's proposal for Time dotCom "within the context" of its own restructuring plan and circumstances. However, Time will also continue discussions with Sapura and members of the Sapura group to obtain their consent for its own restructuring plans, the company said in a statement yesterday. The statement also noted that Sapura's bid for Time dotCom is not underwritten and may involve a bond issue to raise cash. In contrast, Time's own restructuring plan was prepared jointly with the Corporate Debt Restructuring Committee and will be placed before creditors on June 8, it added. Time said the Sapura Group is not related to the Time group of companies but are either creditors or shareholders in some units. Sapura, which controls the listed Sapura Telecommunications Bhd, last week put in a bid for Time dotCom Bhd, rivalling Singapore Telecommunications Ltd (SingTel). Yesterday, Sapura sources told the Malaysian Business Times that it has a good chance of buying a stake in Time dotCom. The newspaper quoted sources as saying that Sapura's bid was backed by secured funds totalling RM1.8 billion (S$813.6 million), more than half of which was coming from a global telecommunications supplier with the remainder sourced from financial institutions. The paper did not name the global telecoms company. Sapura had been rumoured to be eyeing the Time stake with Hongkong's Hutchison Whampoa Ltd, but Hutchison was not mentioned in its proposal and there was speculation a big European firm might be backing Sapura. But in a statement later yesterday Sapura declined to comment on the rumour and said it has been in talks with several global companies as part of its business operations. "We cannot verify or quash rumours which at this time are rife due to our announcements on Friday regarding our interest in bidding for Time ...," it said in a statement. A Malaysian minister yesterday also reiterated the government's stand that it will not interfere in the two- way race to buy Time Engineering Bhd's telecommunications assets. "We don't have any stand. We'll leave it to the commercial decision of the parties involved," the national Bernama news agency quoted Energy, Communications and Multimedia Minister Leo Moggie as saying. His statement follows a similar statement by the Deputy Finance Minister Shafie Mohd Salleh on Tuesday. Mr Moggie said his ministry had not seen the two bids and also declined comment on whether Kuala Lumpur prefers a Malaysian company to take over Time. He said a government policy allows up to 30 per cent foreign investment in a Malaysian company. As such, the government would not have any objection to SingTel if the Singapore company obtained all the necessary approvals, he added. Time shares closed four sen up at RM4.66 yesterday. (Business Times 04-May-2000) ===================== P H I L I P P I N E S ===================== ASB GROUP: Seeks rehabilitation,debt payments suspension -------------------------------------------------------- Facing possible investigation by both the Bangko Sentral (Central Bank) and the Securities and Exchange Commission (SEC), the ASB Group of Companies has filed with the corporate watchdog a petition for financial rehabilitation and suspension of debt payments. The ASB Group, with liabilities of more than 12.7 billion Philippine pesos ($0.308 billion at PhP41.269=$1), sought a 60-day suspension of all actions and claims by creditors and suppliers. "The institution of extra judicial and judicial foreclosure proceedings and the filing of court actions against (ASB Group) will necessarily result in the paralyzation of its business operations and its assets being lost, dissipated or wasted," it said. Despite possessing properties worth PhP19.21 billion ($0.465 billion) -- more than enough to cover its obligations -- the realty firm feels it will be unable to meet its obligations within a year due to the "massive withdrawal by creditors of their loans, coupled by the...glut in the real estate market, the severe drop in the sale of real properties and decreased investor confidence." Capital stock stood at PhP2.192 billion ($0.053 billion) as of end-March. At present, the ASB Group said both secured and unsecured creditors are pressing for payments of due and maturing obligations, threatening to initiate actions that will adversely affect its operations and "shatter its hope in rehabilitating itself." The ASB Group has between PhP8 billion ($0.194 billion) and PhP10 billion ($0.242 billion) in "direct borrowings" to individuals and creditor banks. Of the amount, about PhP3 billion ($0.073 billion) to PhP4 billion ($0.097 billion) are owed to three to four mostly Chinese-Filipino investors, the sources said. Most of the loans are secured by real estate. It has tapped the services of auditing firm SyCip, Gorres, Velayo & Co. (SGV) as adviser. "There is a clear, present and imminent danger that the creditors...will institute extra judicial and judicial foreclosure unless restrained by the (SEC)," the ASB Group said. At the same time, the ASB Group said at least 712 creditors, 317 contractors and suppliers and over 492 condominium unit buyers will be "prejudiced by the disruption of (its) operations." Some of its creditor banks are Allied Banking Corp.; Equitable PCI Bank; International Exchange Bank (iBank); Metropolitan Bank & Trust Co.; the Philippine National Bank; Rizal Commercial Banking Corp.; Union Bank of the Philippines; and United Coconut Planters Bank. While majority of the debts to creditor banks are said to be secured by real estate assets such as condominium units and the popular Ortigas Center landmark, St. Francis Square, a BusinessWorld source said iBank has a "PhP300- million ($7.27-million) clean omnibus line that was fully availed." iBank president and chief executive officer Ramon Y. Sy earlier said the bank has "over PhP200 million ($4.85 million)" in unsecured loans to the ASB Group. Individual lenders, meanwhile, include a congressman, a high-profile lawyer, and big names from the Filipino- Chinese business community, the source added. Earlier, ASB said it will come up with a repayment plan within 30 days, which ended last Saturday. Last Tuesday, however, it sent out letters stating that it will have to file for suspension of payments because one of the creditor banks does not want to "cooperate," the source said. "One bank is not allowing the group to get their deposits," the letter read. The ASB Group started experiencing liquidity problems after jittery individual creditors demanded a repayment of their investments last month. The individual creditors reportedly feared a repeat of the Westmont Investment Corporation (Wincorp) fiasco. Wincorp began experiencing liquidity problems last February after UOB Philippines discovered irregularities and cancelled its short-term check clearing facility with the bank. This prevented Wincorp from making full payment to about 1,300 investors, mostly Chinese-Filipinos. Be that as it may, the ASB Group said it remains feasible and profitable and that it will "eventually be able to pay all its obligations given some changes in its management, organization, policies, strategies, operations or finances." Along with its petition for a debt payment suspension, ASB submitted a rehabilitation plan that calls for the disposal of some assets worth PhP10 million ($0.242 million) through dacion en pago, or payment in kind, with creditor banks and other individual creditors, among others. Also under the interim rehabilitation plan, payment to creditors will be made on a pro rata basis on or before July 28, this year. According to ASB, however, a more detailed and comprehensive rehabilitation proposal will be presented within the next few weeks. It said proposal may call for the forming of a strategic alliance with third party investors, including joint ventures and similar arrangements. ASB also nominated former SEC commissioner Monico V. Jacob, former National Development Company president Arthur Aguilar and former SGV chairman Carlos Alindada to sit in the firm's interim receivership committee and ensure that its assets are kept in place. The ASB Group is composed of ASB Holdings, Inc., ASB Realty Corp., ASB Development Corp., ASB Land, ASB Finance and its allied companies -- Makati Hope Christian School, Bel-Air Holdings Corp., Winchester Trading Inc. VYL Development Corp., Gerick Holdings Corp., and Neighborhood Holdings, Inc. (Business World 04-May-2000) EEI CORP.: Posts net loss ------------------------- EEI Corp. posted a net loss of 665.3 million pesos ($16.1 million) for 1999, down form a net profit of 270.2 million pesos in 1998. The Philippine construction concern blamed over revenue on the continued slump in the property sector. (Dow Jones) (The Asian Wall Street Journal 03-May-2000) MONDRAGON INT'L PHILIPPPINES: Losses down to P995M in '99 --------------------------------------------------------- Cash-strapped Mondragon International Philippines Inc. (MIPI) was able to trim its losses last year to P995.218 million from P1.132 billion in 1998. MIPI said it was able to pare down its losses despite a drastic drop in its revenues from operations which last year stood at only P523.739 million compared to P1.614 billion in the previous year or 1998 before its financial woes unraveled. Last year, MIPI's current liabilities amounted to P6.25 billion while its long-term debts totaled P1.28 billion. MIPI said its financial statements for 1999 are not yet complete because of the takoever of the Clark Development Corp. (CDC) of its Mimosa Leisure Estate which prevented it from having access to records. MIPI said that although legal proceedings are still ongoing, it is still willing to come to an amicable settlement with the CDC and the Philippine Amusement and Gaming Corp. or Pagcor. "The normalization of the Mimosa Regency Casino's operation is still the company's primary objective being the major revenue contributor among the business modules in the Mimosa Leisure Estate," MIPI said in a disclosure to the Securities and Exchange Commission. It added that the forcible takeover of certain operating modules or units of Mimosa has caused loss of revenues to the company specific to the contribution of golf operations and the revenue generation from the hotel and villas as well as food and beverage sales. MIPI said the Mimosa Golf & Country Club including the Monte Vista Hotel was forcibly taken over by CDC even before the lapse of the five-day period given by the Court Sheriff for MLRC to comply with the writ of execution. However, the rights of existing Mimosa golf club members, in any case, will not be affected as they are vested rights already existing and validly entered into by Mondragon. (Philippine Star 04-May-2000) URBAN BANK: Still no buyers for its investment arm -------------------------------------------------- "They are all 'on book' transactions, but it's larger than Urban Bank's trust department -- which is unusual," the central bank chief said. Assets of banks with investment houses are usually far larger than those of their subsidiaries, but "this is not the case with Urban Bank," he said. The Bangko Sentral and the Securities and Exchange Commission (SEC) will jointly appoint a custodian bank to manage the disposal of assets of the investment house. Mr. Buenaventura also denied there is a political angle to the investigation of Urban Bank, where former President Ramos is chairman emeritus. He added the central bank has not yet discovered any unusual transactions in the bank's records. "But we are still looking at the withdrawals," he said. He added that the Bangko Sentral is working closely with the Philippine Deposit Insurance Corporation (PDIC) to prepare Urban Bank's books for examination by prospective buyers. We're speeding up the process so that we can fast- track the due diligence of the interested parties," Mr. Buenaventura said. Banco de Oro Universal Bank, the International Exchange Bank, Singapore-based Keppel TatLee Bank Ltd. and another foreign bank have expressed interest in acquiring Urban Bank for its 28-branch network. Meanwhile, the plan of the Social Security System (SSS) to liquidate its real estate investments in Urban Bank will likely run afoul of the country's corporate liquidation rules, the central bank said. "SSS is a meaningful shareholder in Urban Bank so (it is) last in line when it comes to asset distribution," Mr. Buenaventura told reporters. SSS has asked Urban Bank to surrender a piece of real estate in the Fort Bonifacio Global City project to satisfy its investment in a joint property undertaking. As a shareholder, Mr. Buenaventura said the SSS will have to wait for all of the bank's liabilities to be satisfied first. Under local corporate laws, liquidated assets will be used to first satisfy the defunct company's liabilities to the National Government, usually in the form of taxes. Next are creditors secured by real estate mortgage or other forms of collateral, and then unsecured creditors. Finally, the remaining assets will be used to satisfy the claims of preferred shareholders and common shareholders, respectively. The Bangko Sentral chief said while the SSS' plan to liquefy its investments in Urban Bank may be "well- intentioned," it will likely be opposed by other creditors and shareholders. "Basically, other shareholders will object that SSS is trying to get ahead of them in the asset pool," he said. "If (the SSS is) successful, this will diminish the assets that will be left available to other concerned parties." He said that SSS will likely file a suit against Urban Bank for its failure to inform shareholders of its financial situation "in a timely manner. It's up to them (SSS), but their complaint seems to be similar to (that of) San Miguel Corp. (SMC)," Mr. Buenaventura said. The Bangko Sentral chief said that if SMC -- which has two representatives on Urban Bank's board -- claimed to be unaware of Urban Bank's true financial state, "what more for SSS" which is a minority shareholder in the bank? In a related development, the Justice department has strengthened and expanded the powers of the task force tasked to investigate bank frauds as an offshoot of the Urban Bank financial woes. Press Assistant Secretary Michael T. Toledo told reporters in Malaca�ang the Department of Justice (DoJ) has renamed the body from Task Force on Bank Fraud to Task Force on Financial Fraud. "In the interest of public service and pursuant to the provisions of existing laws, the Task Force on Bank Fraud is hereby expanded and strengthened to include in its mandate the investigation and prosecution of cases involving violations of banking, securities and other related laws, including financial fraud," DoJ Order No. 156 issued yesterday said. The order was signed by Justice Secretary Artemio G. Tuquero and forwarded to Malaca�ang a day after President Estrada ordered the DoJ to investigate allegations of wrongdoing that led to the temporary closure of Urban Bank last April 27. The original task force on bank fraud was formed under Department Order No. 58, issued last February 21. Named chairman of the expanded task force was assistant chief state prosecutor Leonardo Guiyab, Jr. while senior state prosecutor Estherbella N. Rancea was named vice- chairman. Appointed as members of the task force were senior state prosecutors Archimedes V. Manabat and Japar Dimaampao, as well as state prosecutors Albert R. Fonacier, Josefino A. Subia, Cielito A. Luyun, Merba Waga, Peter Ong and Edmundo Macarubbe. "The members of the task force are hereby authorized to enlist and coordinate the pertinent services of other government agencies to ensure successful performance of their functions," Mr. Tuquero said in the order. Earlier yesterday, Mr. Tuquero said in a radio interview that DoJ will tap prosecutors who are experts in banking and accounting to form the task force ordered by President Estrada to investigate Urban Bank. He said he ordered Justice Undersecretary Regis V. Puno to draw up a list of lawyer-accountants who will be named to the task force. He also noted that the Bangko Sentral is conducting a separate investigation into the reported unusually heavy withdrawals that hit two other commercial banks last weekend -- the International Exchange Bank and the Philippine Bank of Communications. (Business World 03- May-2000) URBAN BANK: Banque Nationale de Paris shows interest ---------------------------------------------------- Banque Nationale de Paris has expressed interest in acquiring Urban Bank Corp, which was closed last week amid heavy withdrawals, the Philippine Star reported, quoting Philippine Deposit Insurance Corp (PDIC) vice president Ricardo Tan. Urban Bank was placed under the receivership of state-run PDIC last Wednesday. "In addition to Banco de Oro, one or two non-Philippine banks have expressed interest in Urban Bank. One is a regional player, Keppel Tatlee Bank, and a leading bank from Europe, Banque Nationale de Paris," Tan said. The newspaper also reported that four officials of Urban Bank were included in the Bureau of Immigration's hold- departure order list to prevent them from leaving the country while investigations are being conducted to determine the cause of the bank's collapse. Immigration Commissioner Rufus Rodriguez ordered the inclusion of Urban Bank chairman Arsenio Bartolome, president and chief executive officer Teodoro Borlongan, corporate secretary Corazon Bejasa and senior vice president Renato Claravall in the hold-departure list. (AFX News Limited 03-May-2000) URBAN BANK: Major account holders want to own it ------------------------------------------------ Some clients of beleaguered Urban Bank are interested in converting their accounts into equity in a bid to help the bank regain its footing, Philippine Deposit Insurance Corporation (PDIC) president Norberto C. Nazareno said yesterday. A group of the bank's high net worth clients, Mr. Nazareno told BusinessWorld in a telephone interview, has expressed intention to convert their accounts into equity. "I have been talking with some of Urban Bank's clients and they have expressed their plan to convert their accounts to equity," he said. "These clients are those that have investment accounts with the bank (like) San Miguel (Corp.), Meralco (Manila Electric Co.), Petron (Corp.) and some high net worth individual clients," the PDIC chief added. Mr. Nazareno said these clients are planning to pool their accounts, convert this into equity and, in the process, look for a possible partner who will invest in Urban Bank. He said the group is also planning to ask the Bangko Sentral for financial assistance so that the troubled commercial bank can reopen at the soonest possible time. Mr. Nazareno said the group needs to raise at least 2.8 billion Philippine pesos ($0.068 billion at PhP41.269=$1) to reopen the bank. "They could discuss among themselves who will infuse what amount...they could do it on a pro rata basis, depending on who was there first. They could also make arrangements on who will support the depositors claims," he said. If the process goes through, the group plans to reopen the bank under a different name. Mr. Nazareno said six banks, three foreign and three local, have already expressed interest in a stake in the troubled commercial bank. But he refused to name names, saying it may be premature since it just an expression of interest. It was earlier reported that local banks Banco de Oro Universal Bank, International Exchange Bank and Rizal Commercial Banking Corp. have expressed interest in Urban Bank. As for the foreign banks, Singapore-based Keppel Tatlee Bank and France-based Banque Nationale de Paris have also expressed their intention to buy into Urban Bank. Meanwhile, the travel ban imposed by the Bureau of Immigration and Deportation against four senior executives of Urban Bank may have been prompted by complaints filed against the bank. "The hold order is probably an offshoot of the complaints filed by the bank's shareholders like San Miguel Corp., some depositors, as well as some (fund) placers in their trust fund," Bangko Sentral (Central Bank) Gov. Rafael B. Buenaventura told reporters yesterday. Last week, major shareholder SMC filed a complaint with the Bangko Sentral against Urban Bank for its lack of transparency in disclosing the true financial state of the bank. It also asked for the bank to make good on nine manager's checks it issued worth PhP179.2 million ($4.34 million) to various subsidiaries of the food conglomerate. SMC has some PhP1.3 billion ($0.032 billion) worth of exposure to the bank. Covered by the hold departure order (HDO) are Urban Bank board chairman Arsenio Bartolome, president and CEO Teodoro Borlongan, senior vice-president and corporate secretary Corazon Belasa, and senior vice-president Renato Claravall. The HDO, however, excluded the other directors. The HDO was issued in connection with the investigation ordered by Malaca�ang into the activities of Urban Bank which led to its declaration of a bank holiday last week. Mr. Buenaventura said, however, that it is still too early to tell if any of the bank's top management violated banking regulations. "We don't know yet if there is any criminal liability," he said. "We are still looking into their transactions." Apart from SMC, Social Security System is also set to file a formal complaint against Urban Bank for its management's failure to inform state-run pension fund -- another substantial shareholder -- of the deterioration in the bank's financial condition in a timely manner. (Business World 04-May-2000) URBAN BANK: BSP to investigate P450M loan to Puerto Azul -------------------------------------------------------- Two days before it went on a bank holiday, Urban Bank Inc. reportedly granted a P450-million loan to Puerto Azul Land Inc. of the Panlilio family. Industry sources revealed that the loan was released on April 24, the day when Urban Bank officials said withdrawals reached P800 million before peaking at P1 billion the next day. Three days after Pali got its loan, the bank shut down. Industry sources said the Pali loan was one of the "skeletons" in Urban Bank's closets that the Bangko Sentral ng Pilipinas and Philippine Deposit Insurance Corp. are now investigating. Sources inside the central bank said Malaca�ang itself asked government regulators to look into the Pali loan. Apart from this loan, the BSP is also investigating reports that inside information enabled some people close to Urban Bank's key officials to make huge withdrawals and loan released before the bank went belly up. The government took control of Urban Bank after the small commercial lender temporarily closed to halt a run on deposits, its biggest bank seizure since the 1997 Asian currency crisis. One source said Urban Bank chair and founder Arsenio Bartolome III asked President Estrada to allow state-owned pension Social Security System to take over the bank. "The president would never have allowed it, assuming they really asked for a bailout," said Buenaventura. No Urban Bank official was available for comment yesterday. Bartolome's secretary said he was on a meeting outside the office and could not be contacted. There had been unconfirmed reports that the bank's owners and officials, including chair emeritus and former President Fidel Ramos, led the rash of withdrawals from Urban Bank. Urban Bank, with P11.9 billion of assets, is one of the smallest of the 50-odd commercial banks in the country where the government has been trying to force banking mergers in the hope that few bigger banks will better survive financial shocks. (Philippine Star 04-May-2000) WESTMONT INVEST.CORP.: Pearlbank dares to open books to SEC ----------------------------------------------------------- PearlBank Securities yesterday said it doesn't owe a single centavo to Westmont Investment Corp. and pushed for a speedy and open investigation into the investment firm's transactions. In a statement, PearlBank dared Wincorp to open its books to regulators. On March 8, Wincorp reportedly denied central bank examiners access to its books and transaction records. The Bangko Sentral ng Pilipinas (Central Bank of the Philippines) was trying to validate reports that Wincorp violated banking laws by accepting deposits and lending funds without authority or license from the BSP. (Business World 04-May-2000) =============== T H A I L A N D =============== INT'L ENGINEERING PCL: Debentures to be delisted ------------------------------------------------ International Engineering Public Company Limited (IEC) informed that the company's Convertible Debentures (IEC@1) will be matured on 11 May 2000. However, IEC failed to comply with the debentures covenant requirement. Therefore, on 15 March 1999, the majority of debentures holders passed a resolution to let the trustee of debentures holders file a lawsuit against IEC. As of 23 July 1999, the trustee of debentures holders already filed a lawsuit to the Civil Court demanding IEC to repay principal with interest amounting to Baht 449.59 million to debentures holders. Later, IEC offered to buy back debts at 15% of the debenture value from the holders who are willing to sell debt to IEC at that price. For the remaining debenture holders, when the Court has judgement, they will become judgement creditors and waiting to enter into restructuring plan with other creditors. IEC has informed the SET that on 11 May 2000, there will be no redemption as terms and conditions stating the rights and duties of the debenture issuer and the debenture holders due to IEC is still in the process of debt restructuring. Because of the maturing of the debentures, IEC@1 will thereforebe delisted from the Exchange. By virtue of Clause 5 (6) of the SET's Rules, Conditions and Procedures for the Temporary Prohibition of Trading of Listed Securities, notified on February 9, 1995, the SET will suspend trading of Debentures of IEC marked as IEC@1 from 8 May 2000 until 11 May 2000 and IEC@1 will no longer be listed securities on the Exchange starting from 12 May 2000. (Stock Exchange of Thailand 03-May-2000) iTV: SCB agrees on payment of iTV fees; 3 bidders eyeing -------------------------------------------------------- Siam Commercial Bank has agreed to pay the concession fees due today by television station iTV pending a debt restructuring expected to be completed later this month. Chatchaval Phannalarp, SCB senior executive vice-president, said the bank had approved new loans to the station to pay the fees. A 300-million-baht loan would be made this month, followed by another 400 million in July. Excluding the new loans, SCB has around 2.8 billion baht worth of debt outstanding to iTV. The bank also controls a 7.3% stake in the station, which has a paid-up capital of 1.2 billion baht. Sources said iTV would first write down capital to help cover outstanding debt. Other loans would be swapped for equity, which would then be sold off to new investors. Meanwhile, three bidders - Merrill Lynch, Lombard and Broadcasting Network Thailand - are negotiating to take a shareholding in iTV, with due dilligence expected to be completed within two weeks. Shin Corporations, the telecom giant owned by Thaksin Shinawatra, has expressed interest in taking a stake in iTV, but bank executives said it preferred to sell off shares gained from the restructuring to several investors, to avoid a concentration of ownership by any one particular group. (Bangkok Post 04-May-2000) NATURAL PARK PCL: Applying for rehab under bankruptcy act --------------------------------------------------------- According to "The Disclosure Guidelines for Listed Companies Applying for business rehabilitation under the Bankruptcy Act," please be advised that: (1) The court ordered for business reorganization, and further allowing the company to go under rehabilitation process on May 2, 2000 (2) The court appointed the plan preparer, NPK Management Service Co., Ltd., as the rehabilitation planner of which the qualification was submitted to SET as referred. (Stock Exchange of Thailand 03-May-2000) ROBINSON DEPT.STORE: Reports progression of rehab to SET -------------------------------------------------------- Robinson Department Store Public Company Limited (the "Company"), through Jongkolrattana Lamwilai, Vice President, Finance Line, hereby informs the Stock Exchange of Thailand that the Company filed a petition for business rehabilitation of the Company with the Bankruptcy Court ("Court") on 5 April 2000, and today (2 May 2000) the Court has ordered to approve the business rehabilitation of the Company and appointed Robinson Planner Limited to be a planner of the Company's business rehabilitation. All duties to manage the Company's businesses and assets, as well as legal rights of its shareholders except for the right to receive dividend, shall be vested to the planner, i.e. Robinson Planner Limited, under Section 90/25 of the Bankruptcy Act B.E. 2483. The Directors, comprised of 6 persons, are 1) Mr. Kanok Wongtrangan, 2) Mr. Pandit Mongkolkul, 3) Mr. Pracha Phathayakorn, 4) Mr. Anthony James Norman, 5) Mr. Warwick Reginald Kneale and 6) Mr. Yundyong Thantiviramanon. The authorized director signatories of Robinson Planner Limited is: Mr. Kanok Wongtrangan or Mr. Pandit Mongkolkul or Mr. Pracha Phathayakorn signing jointly with Mr. Anthony James Norman, Mr. Warwick Reginald Kneale or Mr. Yundyong Thantiviramanon, to be two persons altogether and affixed with the Company's seal." (Stock Exchange of Thailand 03- May-2000) SIAM SYNTECH CONSTRUC.: Reports debt rehab progress to SET ---------------------------------------------------------- Siam Syntech Construction PCL, through Mrs.Sawang Mankhongchareon, Chief Executive Officer, hereby reports its debt restructuring progress to the Stock Exchange of Thailand. Since SSC had signed debt restructuring agreement under the Bank of Thailand (CDRAC ACCESSION) on May 28, 1999, SSC had worked out with creditors since then. On January 28, 2000, SSC had submitted a final restructuring plan to the creditors. Later, on February 15, 2000, SSC got an approval vote of 53.91% from the amount of debt and 43.48% from the number of creditors, which have the right and voted. But under the regulation of CDRAC, SSC need to get an approval vote of 75% and 50% in orderly. Then CDRAC has appointed Bangkok Bank Pcl. to be a negotiator to reach a solution of requirement from all financial creditors. The final solution was to support SSC to file petition to the Bankruptcy Court. Recently, SSC has filed the petition to the Bankruptcy Court on April 24, 2000 and will make an inquiry on May 22, 2000 at 9.00 a.m. (Stock Exchange of Thailand 03-May- 2000) 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., Washington, DC USA. Darryl Henning, Managing Editor, James Philip P. Jover and Cristina Pernites, Editors. Copyright 2000. 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 301/951-6400. *** End of Transmission ***