/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/010817.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, August 17, 2001, Vol. 4, No. 164 Headlines A U S T R A L I A AMP LIMITED: ASIC Begins Disclosure Investigation AMP LIMITED: Disclosure Policies Review Conducted AMP LIMITED: H/Y Meeting With Analysts Held AUSTRALIAN WORKFORCE: Releases Case Profile COLES MYER: Brambles CEO Fletcher Named Chief Executive KEYCORP LIMITED: Director Thompson Assumes CEO Post OPTECOM LIMITED: Suspended From Trading PASMINCO LTD: Chairman Rayner Takes Leave Of Absence C H I N A & H O N G K O N G 139 HOLDINGS: Placing 1.44 Trillion Shares With Investors COMPANION BUILDING: Posts Unaudited Financial Results GOLDEN EXPRESS: Hearing of Winding Up Petition Set MANON TOBACCO: Winding Up Petition Slated For Hearing PACIFIC CENTURY: Comments On Exceptional Price, Turnover SHUN TO: Petition To Wind Up Set For September J A P A N MYCAL CORP: Drops Plans For Additional Retail Outlets K O R E A ANAM SEMICONDUCTOR: Posts Net Loss Of W121.4B; Sales Down 84% ASIANA AIRLINES: Continues Cost-Reduction Campaign DAEWOO MOTOR: Operating Profit On The Rise KOREAN AIRLINES: Lays Off Staff; Promotes Early Retirement HYUNDAI ENGINEERING: Narrows Net Loss to 86% SEOUL GUARANTEE: Liquidity Problem Likely * Govt Revises Chaebol Debt Regulations M A L A Y S I A AYER HITAM: Unit Suspends Interest Payment EPE POWER: Monthly Interest Payment Defaulted ISUTA HOLDINGS: Conversion Price Of RM1.5 Per Share LAND & GENERAL: Unit Defaults On Shares Redemption PANGLOBAL BERHAD: Requests Scheme Proposal Approval Extension UH DOVE: FIC Grants Proposal on Debt Workout P H I L I P P I N E S BELLE CORP: Posts Half-Year Loss of P367.8M METRO PACIFIC: Widens 1st Half 2001 Loss To 80% NATIONAL POWER: Excluded From GSIS Insurance Firm Selection NATIONAL BANK: Loss Widens To P1.9B S I N G A P O R E GOLDEN AGRI: Posts Notice Regarding Substantial Shareholding SEMBCORP LOGISTICS: Posts Changes In Substantial Shareholding T H A I L A N D B GRIMM: Cites Reasons For Bt35.3M Net Loss Major Variances BANGKOK RANCH: Files Petition For Business Reorganization PRASIT PATANA: Administrator Addresses Causes of Net Loss THAI PETROLEUM: Ube Industries To Buy Assets For Bt1.27B THAI WAH: Administrator Reports Reorganization Plan Progress ================= A U S T R A L I A ================= AMP LIMITED: ASIC Begins Disclosure Investigation ------------------------------------------------- The Australian Securities and Investments Commission (ASIC) revealed it has commenced a formal investigation into whether AMP Limited's complied with its market disclosure obligations. The investigation follows the Australian Stock Exchange referral relating to recent briefings of analysts by AMP and the subsequent publication of revised profit expectations for the year ended 30 June 2001. ASIC will make no further comment on the scope or progress of the investigation at this time. AMP LIMITED: Disclosure Policies Review Conducted ------------------------------------------------- AMP Limited conducted an immediate internal review of its disclosure policies and practices following concerns expressed by regulators. The concerns expressed relate to a series of briefings for analysts and institutions, which were held to ensure that all publicly available information was reflected in analysts' valuations. These briefings have been held every six months for the past two years. The Chief Executive Officer of AMP, Paul Batchelor, said: "While AMP undertook these briefings with the best of intentions, it is apparent that our approach has caused concern that these briefings were being made selectively. This is unsatisfactory and we will therefore need to change our procedures. "We regret that our approach has caused concern to the market and our staff, and believe an immediate review is the best way forward for the company. "I have requested a full review of our disclosure and briefing procedures. As one of Australia's largest listed companies, we are committed to ensuring best practice disclosure and full transparency of our processes. "We expect the review to be completed before the release of our interim results on 23 August 2001. We will seek to discuss with both ASIC and the ASX the findings of our review, and will ensure we publicly release any new procedures. "While it is too early to speculate about the outcome of the review, it is likely to include steps such as the web casting of briefings relating to results and major transactions or events. We aim to ensure that we have in place practices that allow the widest possible audience to have consistent access to the information we release. "AMP has already held preliminary informal discussions with ASIC and the ASX and will provide full cooperation with any requests for information." AMP LIMITED: H/Y Meeting With Analysts Held ------------------------------------------- AMP Limited held its regular half-yearly meetings with analysts, at which no new information was disclosed. The purpose of these regular meetings is to recap publicly available information and explain the structure of its financial accounts. At the meeting, AMP reaffirmed comments made at its Annual General Meeting on 17 May 2001 on the outlook for earnings for the2001 financial year, when Chief Executive Officer Paul Batchelor said: "At a group level, while weak equity markets will inevitably impact our investment income, we have taken decisive action to cushion this impact, deferring projects where prudent and continuing a company-wide focus on driving down costs. "Sustained weakness in equity markets will also adversely impact our asset management business, Henderson Global Investors. However, management has acted quickly to minimize the impact of current market volatility. As a result, Henderson should still deliver recurring margins above those of 2000 - a good performance relative to their peers, many of whom have been reporting lowered earnings. "The profitability of the remainder of the business has been resilient and we remain confident of delivering double-digit growth in our core, recurring operating margins this year. "Overall, in terms of outlook for 2001, our core businesses are performing well and whilst weak international financial markets may adversely impact the bottom-line in the first-half, we have a positive view of markets for the balance of the year. Together with our strong operating profit, this should deliver a sound 2001 result for AMP shareholders." AMP reaffirms its expectation for growth in total core recurring operating margins for 2001. This takes into account the expected impact of recent acquisitions and divestments. AUSTRALIAN WORKFORCE: Releases Case Profile ------------------------------------------- Territory: Australia Company Name: Australian Workforce Eligible Rollover Fund (AWERF) Lead Partner: Peter Hedge Case Manager: Ian Douglas Date of Appointment: 13 December 2000 Normal Contact: Ian Douglas Contact Phone No: (02) 8266 3955 PwC Office Location: Sydney PO Box: GPO Box 2650 Street Address: Darling Park Tower 2 201 Sussex Street City: SYDNEY State: NSW Postcode: 1171 DX: DX 77 Sydney Phone: (02) 8266 3955 Fax: (02) 8266 2736 Appointor: APRA Registered Office of company: C/ PwC - Level 1 201 Sussex Street Company No / ACN: 095 333 743 Type of Appointment: Trustee Second Partner - Full Name: Ian Douglas Case Information Background Information Oak Breeze Pty Ltd was appointed as the new Trustee to the AWERF fund by APRA, on 13 December 2000. Current status of assignment and actions required by creditors Oak Breeze Pty Limited, the acting trustee of AWERF, is in the process of completing the review and finalizing the audit of AWERF for the year ended 30 June 2000. This includes reconciling fund assets to member records, producing financial statements and issuing member statements and annual reports. Australian Securities & Investments Commission (ASIC) has granted the acting trustee a further extension for issuing member statements and annual reports until 30 September 2001. The acting trustee continues to report monthly to Australian Prudential Regulation Authority (APRA) on its progress of the management of AWERF. Next milestone and estimated timetable The acting trustee estimates that the review for the 30 June 2000 year and audit of AWERF to be finalized by the end of August 2001. Accordingly, members should receive their annual statements and an annual report for the 2000-year in September 2001. The acting trustee has also commenced reconciling transactions from 1 July 2000 to the current date and intends to issue member statements and an update on the movements for the 2001 financial year in the latter stages of calendar 2001. We will provide a regular update on the status of the 2001 review as more information becomes available. Update of Member Address Details If you have changed your address since our last correspondence to you, please download and complete the Notification of Address Change form (Refer "Click here to view Published Documents" above). The completed form should be mailed or faxed to: Mr Scott Vincent Oak Breeze Pty Limited c/- PricewaterhouseCoopers GPO Box 2650 Sydney NSW 1171 Facsimile: (02) 8266 8915 (source: www.pwcrecovery.com) COLES MYER: Brambles CEO Fletcher Named Chief Executive ------------------------------------------------------- Coles Myer Ltd (CML) announced John Fletcher was appointed Managing Director and Chief Executive Officer of CML beginning 10 September 2001. The Chairman of CML, Stan Wallis, said: "The appointment follows the announcement made on 10 April 2001 that an executive search was commencing to replace CML's present CEO, Dennis Eck. Egon Zehnder International has conducted a very extensive local and international search over the past four months and we are very pleased to have secured the services of John Fletcher who retired as CEO of Brambles Industries Ltd earlier this month. He joins CML after a long and successful career with Brambles and will bring his extensive Australian and international experience and leadership skills to CML. Wallis also stated: "Whilst the last twelve months or so have been challenging for the company, CML achieved very good growth in sales earnings and returns in the previous four years under the leadership of Dennis Eck. Dennis' major contribution since he became involved with CML has clearly been the revitalization of the Group's Food & Liquor businesses, and the development of the company's e-commerce activities where he has been a major driving force. We thank Dennis for his efforts over the past seven years on behalf of shareholders and employees." "John Fletcher will take up his appointment as substantial change is occurring in the company, particularly with rejuvenating CML's General Merchandise & Apparel businesses. We look forward to a continuation of John's past achievements in creating and driving shareholder value on behalf of all stakeholders in the company." John E Fletcher, aged 50, has spent almost all his professional career with Brambles Industries, commencing in 1974 - initially in an accounting role and then in a series of operating and senior management positions. He was appointed General Manager of the Transport Division in 1982, Commercial Director Europe in 1984, Managing Director CHEP Australia in 1986, Managing Director Brambles Australia in 1988 and Chief Executive of Brambles Industries in 1993. Following the recent merger of Brambles with major entities of the UK based GKN Group and the formation of the dual listed entity, Fletcher retired as CEO of Brambles on 1 August 2001. John Fletcher has been a major driving force behind the growth of Brambles in recent years and the development and formation of the new Brambles DLC. John Fletcher was born and educated in Melbourne. He is married with three children and presently lives in Sydney but will relocate to Melbourne for the Coles Myer CEO role. KEYCORP LIMITED: Director Thompson Assumes CEO Post --------------------------------------------------- Michael Thomes is no longer Managing Director of Keycorp Limited. As an interim measure, Bruce Thompson, a director of Keycorp Limited, will assume the responsibilities of Chief Executive Officer until a permanent replacement is found. Thompson spent 32 years with Hewlett Packard before retiring as Managing Director of Hewlett Packard Australia and New Zealand last year. The company will report its audited results for the six months to June 30, 2001 on August 15. These results at the operating level before amortization, abnormal items and income tax will be in the range of between $10 million and $15 million loss as foreshadowed at the Company's Annual General Meeting in May. In addition, a provision for restructure of $3.7 million will be incorporated in the June results. This restructure, which is currently being implemented, is expected to generate savings of $15 million in the year to June 30, 2002 and $19 million in a full year. Directors plan to provide a comprehensive statement on the company's activities and forecast results for the six months to December 2001 and 12 months to June 30, 2002 on August 15. OPTECOM LIMITED: Suspended From Trading --------------------------------------- The securities of Optecom Limited (the Company) will be suspended from quotation at the close of trading on Friday, 17 August 2001 at the request of the Company, in accordance with the timetable with respect to the proposed acquisition of all the securities of Ambri Limited. The Company requested a suspension of its shares from quotation under Listing Rule 17.2, effective from close of trading on Friday, 17 August, 2001, ahead of the general meeting to consider the acquisition of Ambri to be held on Thursday, 23 August 2001. Subject to Optecom shareholders approving the required resolutions at the general meeting, Optecom expects to be able to satisfy the necessary conditions, so as to allow the voluntary suspension of the trading of its shares to end by 30 August 2001. The Company is not aware of any reason why its shares should not be voluntarily suspended. REQUEST FOR VOLUNTARY SUSPENSION, LAST DAY OF TRADING/OPTIONS The Directors advise that, in accordance with the timetable set out in the ASX announcement on 13th July 2001 and the Prospectus registered on the same day, they have requested a voluntary suspension of the Company's shares from trading on the ASX, effective from the close of business on Friday 17th August 2001. Friday 17th August 2001 is also the last day of trading in the Company shares cum the 1:10 Bonus Option, as set out in that Prospectus. The fully underwritten Share Offer under the Prospectus, which opened on 30 July, 2001 was closed, fully subscribed, one day later on 31 July 2001. Shareholders are reminded of the General Meeting of Shareholders to be held at 10.00am on Thursday 23rd August 2001 and that proxy forms must be lodged at the Company's Share Registry no later than 48 hours before the commencement of the meeting. Following the General Meeting of Shareholders to approve the acquisition of Ambri and other related matters as set out in the Prospectus, the Directors anticipate that the Shares will commence trading on the ASX under the new Company name of Ambri Limited (ASX Code: ABI), on or about the 30th August 2001 and that the Bonus Options will commence trading on the Australian Stock Exchange on Wednesday 12 September 2001. PASMINCO LTD: Chairman Rayner Takes Leave Of Absence ---------------------------------------------------- The National Australia Bank announced that Chairman Mark Rayner, has decided to take leave of absence from the board to concentrate on restructuring Pasminco Ltd, of which he is also Chairman. In the interim, Charles Allen will undertake the duties of the Chairman. Rayner said he had made his decision in the interest of good corporate governance at both the National and Pasminco. "It puts beyond doubt any suggestion of a conflict of interest flowing from the National's exposure to Pasminco. I have not been involved in any discussions relating to that exposure at either company," he said. ================================ C H I N A & H O N G K O N G ================================ 139 HOLDINGS: Placing 1.44 Trillion Shares With Investors --------------------------------------------------------- On 3 August, 2001, 139 Holdings Limited conditionally agreed to place, through its placing agent, Tai Fook, 1,436,560,000 Placing Shares to more than six professional investors. The investors are independent of, and not connected with, the directors, chief executive or substantial shareholder of the company, and any of their subsidiaries or any of their respective associates, at a price of HK$0.025 per Placing Share. The Placing is fully underwritten by Tai Fook and will be subject to certain termination events as set out below. The Placing Shares represent approximately 19.99% of the existing issued share capital of the company of 7,182,800,478 Shares and approximately 16.67% of the company's issued share capital as enlarged by the issue of the Placing Shares. The net proceeds from the Placing of approximately HK$34.8 million will be used for additional working capital of the Company. The Placing is conditional upon the Stock Exchange granting listing of, and permission to deal in, the Placing Shares. Tai Fook is the placing agent and underwriter and will receive a placing and underwriting commission of 2.5% on the gross proceeds of the Placing. Tai Fook is independent of and not connected with the directors, chief executive or substantial shareholder of the Company, and any of their subsidiaries or any of their respective associates (as defined in the Listing Rules). Placees Tai Fook has agreed to procure more than six placees (independent individual and institutional investors) who are independent of and not connected with the directors, chief executive or substantial shareholder of the Company, and any of their subsidiaries or any of their respective associates (as defined in the Listing Rules) to subscribe for the Placing Shares at HK$0.025 per Placing Share, failing which Tai Fook has agreed to subscribe for the unplaced portion of the Placing Shares. Placing price The placing price is HK$0.025 per Placing Share. This price was agreed after arm's length negotiations and represents (i) a discount of approximately 10.7% to the closing price of HK$0.028 per Share quoted on the Stock Exchange on 3rd August, 2001; and (ii) a discount of approximately 12.3% to the average closing price of approximately HK$0.0285 per Share as quoted on the Stock Exchange from 20th July, 2001 to 3rd August, 2001, both dates inclusive, being the last ten full trading days immediately before the issue of this announcement. Ranking of Placing Shares The Placing Shares will when issued and fully paid rank pari passu in all respects with the then existing issued Shares. Number of Shares to be placed 1,436,560,000 new Shares are to be placed, representing approximately 19.99% of the existing issued share capital of the Company of 7,182,800,478 Shares and approximately 16.67% of the issued share capital of the Company as enlarged by the issue of 1,436,560,000 Placing Shares. The Placing Shares are fully underwritten by Tai Fook. General Mandate The Placing Shares will be issued pursuant to the general mandate to allot, issue and deal with Shares granted to the directors of the Company by resolution of its shareholders passed at the Company's special general meeting held on 26th July, 2001 and the then issued share capital of the Company was 7,182,800,478 Shares. Use of Proceeds The net proceeds from the Placing of approximately HK$34.8 million referred to herein will be used for additional working capital of the Company. Condition of the Placing The Placing is conditional upon the Listing Committee of the Stock Exchange granting listing of, and permission to deal in, the Placing Shares ("Condition"). Completion The Placing is to be completed on the second business day after satisfaction of the Condition or such other date as the Company and Tai Fook may agree. The Placing Agreement will lapse if the Condition is not satisfied by 3 September, 2001 unless the parties agree otherwise. Termination Events Notwithstanding anything contained in the Placing Agreement, if at any time on or prior to 4 p.m. on the following date of fulfillment of the Condition ("Expiry Date"): (A) in the reasonable opinion of Tai Fook there shall have been since the date of the Placing Agreement, such a change in national or international financial, political or economic conditions or taxation or exchange controls as would be likely to prejudice materially the consummation of the Placing; or (B) any material breach of any of the representations and warranties by the Company as set out in the Placing Agreement comes to the knowledge of Tai Fook or any event occurs or any matter arises on or after the date of the Placing Agreement and prior to the date of completion which if it had occurred or arisen before the date of the Placing Agreement would have rendered any of such representations and warranties untrue or incorrect in any material respect or there has been a material breach by the Company of any other provision of the Placing Agreement; or (C) the suspension of trading of the Shares on the Stock Exchange for 7 consecutive days or more, then and in any such case, Tai Fook may after consultation with the Company (to the extent that the same is reasonably practicable) terminate the Placing Agreement without liability to the Company by giving notice in writing to the Company, provided that such notice is received prior to the Expiry Date. Application for listing Application will be made by the Company to the Stock Exchange for listing of, and permission to deal in, the Placing Shares. Reason for the Placing In view of the current market conditions, the Directors consider that the Placing represents an opportunity to raise capital for the Company while broadening the shareholder base and the capital base of the Company. General As at the date hereof, the Company has not been notified of any interests in the Company's issued share capital amounting to 10% or more of the ordinary shares in issue, which is required to be recorded in the register required to be kept under section 16(1) of the Securities (Disclosure of Interests) Ordinance, Cap 396 of the laws of Hong Kong. COMPANION BUILDING: Posts Unaudited Financial Results ----------------------------------------------------- Companion Building Material International Holdings Limited announced the company's Unaudited Final Results for the year ended 31st March, 2001, together with the comparative audited figures for the corresponding year in 2000 as follows: 2001 2000 (unaudited) (audited) HK$'000 HK$'000 Turnover 524,334 838,971 (Loss) profit before taxation (723,132) 115,917 Taxation (5,036) (8,935) (Loss) profit before minority interests (728,168) 106,982 Minority interests (3,142) (6,815) Net (loss) profit for the year (731,310) 100,167 The Unaudited Final Results may or may not be subject to further changes upon the finalization of the audit by the auditors of the Group. It is expected that the audited final results of the Group for the year ended 31st March, 2001 ("Audited Final Results") will be published on 7th August, 2001 and the relevant annual report will be dispatched on or before 13th August, 2001. The directors of the Company have confirmed that they have not dealt in any securities of the Company since 27th June, 2001 and have undertaken that they will not deal in any securities of the Company until the publication of the Audited Final Results. GOLDEN EXPRESS: Hearing of Winding Up Petition Set -------------------------------------------------- The petition to wind up Golden Express Engineering Limited will be heard before the High Court of Hong Kong on September 19, 2001 at 9:30 am. The petition was filed with the court on June 29, 2001 by Lee Lok Wai ofRoom 2612, Shui Moon House, Tin Shui Estate, Tin Shui Wai, New Territories, Hong Kong. MANON TOBACCO: Winding Up Petition Slated For Hearing ----------------------------------------------------- The petition to wind up Manon Tobacco Company Limited is scheduled for hearing before the High Court of Hong Kong on August 29, 2001 at 9:30 am. The petition was filed with the court on June 18, 2001 by Hua Chiao Commercial Bank Limited of 92 Des Voeux Road Central, Hong Kong. PACIFIC CENTURY: Comments On Exceptional Price, Turnover -------------------------------------------------------- Pacific Century CyberWorks issued a statement to the HK Stock Exchange yesterday that the company has noted the recent increase in the shares price and trading volume, but that it is not aware of any reasons for such increases. The company also confirmed there are no negotiations or agreements relating to intended acquisitions or realizations which are discloseable under paragraph 3 of the Listing Agreement. The board is also unaware of any matter discloseable under the general obligation imposed by paragraph 2 of the Listing Agreement, which is or may be of a price-sensitive nature. The statement was issued by the company secretary and the general counsel of the Legal & Regulatory Affairs. SHUN TO: Petition To Wind Up Set For September ---------------------------------------------- The petition to wind up Shun To Electronic Technology Company Limited is set for hearing before the High Court of Hong Kong on the 12th day of September 2001 at 9:30 am. Oriental Union Aicargo Limited, whose registered office is situated at Units 3003-8, filed the petition with the court on June 27, 2001 30th Floor, China. ========= J A P A N ========= MYCAL CORP: Drops Plans For Additional Retail Outlets ----------------------------------------------------- Ailing supermarket chain Mycal Corporation says it will not add two large shopping facilities to its network of retail outlets, Japan Times Online reported Thursday, citing an anonymous official. One store was to be built on a 7,300-square-meter site near Nishinomiya Kitaguchi Station in Hyogo Prefecture and the other on a 7,600-square-meter lot in front of JR Nanba Station in downtown Osaka. The supermarket-chain operator disposed 6.45 million shares of subsidiary Mycal Hokkaido Corp to slash debt. Dai-Ichi Kangyo Bank will loan the firm YT50 billion by the end of the month. ========= K O R E A ========= ANAM SEMICONDUCTOR: Posts Net Loss Of W121.4B; Sales Down 84% ------------------------------------------------------------ Anam Semiconductor Co, maker of non-memory semiconductor chips for the US-based Texas Instruments, recorded a loss of W121.4 billion in the first half of this year. The company's sales fell by 84 percent over the same period last year to W89.3 billion, The Digital Chosun reported Thursday. Operating loss for the first half this year, mainly due to the slumping global semiconductor market, stands at W96.4 billion. The company has placed many of its factory workers on leave. The company graduated early from the workout program last year, with an operating profit and net profit of W19.7 billion and W108.1 billion, respectively. ASIANA AIRLINES: Continues Cost-Reduction Campaign -------------------------------------------------- Asiana Airlines, Korea's second-largest carrier, which launched a company-wide 10 percent cost-reduction campaign February of this year, plans to continues cuts in the second half, The Digital Chosun reported Thursday. The airline incurred losses totaling w156.3 billion in the first half. Asiana sold two spare aircraft in May and secured $180 million from the sales. The air carrier issued asset-backed securities worth W350 billion last month. "The global business downturn has dropped the number of passengers by about 4 percent in the first half of this year over the same period last year and the price of jet fuel remains high," an anonymous Asiana official said. DAEWOO MOTOR: Operating Profit On The Rise ------------------------------------------ Daewoo Motor, in its fourth consecutive month, reported an operating profit of W13.2 billion, The Digital Chosun reported Thursday. 42,220 cars were sold in July, producing W453.2 billion. Bupyeong Plant, which General Motors has been refusing to purchase, produced W5.1 billion, the first operating profit in about three years. Daewoo Motor clarified that the operating profit at the main plant was due to lighter manpower expenses as a total of 4,156 workers were laid off in the first half this year. "The news of operating profit at the Bupyeong plant will bolster the management of the firm which has been pushing GM to purchase it along with the newer facilities," one high-ranking Daewoo official commented. KOREAN AIRLINES: Lays Off Staff; Promotes Early Retirement ---------------------------------------------------------- Korean Airlines, the nation's carrier, with a loss of W345.9 billion in the first half, has been pressing ahead with its plan to lay off 500 workers and has begun accepting applications for early retirement, The Digital Chosun reported Thursday. The airline launched in-depth restructuring measures in the wake of their heavy losses in the first half of this year. Korean Airlines plans to limit the hiring of flight attendants to 250 in the second half of this year and plans to limit the employment of new staff as well. The company will sell off spare airplanes and plans to forgo acquisition of new aircraft to raise cash to pay off debts. HYUNDAI ENGINEERING: Narrows Net Loss to 86% -------------------------------------------- Hyundai Engineering & Construction Co. narrowed its first-half net loss to 86 percent, Asian Wall Street Journal reported Tuesday, to W24.2 billion won from W177.9 billion in the same period last year. Hyundai Engineering said that despite weaker sales and an operating loss, its net loss narrowed on debt write-offs by creditors and an extraordinary gain of 15.8 percent of its shares. It reported a W67.7 billion operating loss in the first half, compared with a W167.2 billion operating profit a year ago. Its sales went down to 19 percent atW3.139 trillion from W3.892 trillion. SEOUL GUARANTEE: Liquidity Problem Likely ----------------------------------------- Seoul Guarantee Insurance Co.'s President Hae-Choon Park said the company might face a liquidity problem in October if it pays holders of Daewoo Group units' bonds W620 billion, reported ASWJ Thursday, referring to The Korea Economic Daily. If state-run corporate debt guarantor does so, as demanded by the investment trust companies holding the bonds, it will be short of about W320 billion for other debt payment guarantees. * Govt Revises Chaebol Debt Regulations --------------------------------------- The government is devising ways to improve the large-scale conglomerate system to enhance the quality as well as quantity of their business activities, Korea Times reported Monday. "Quality oriented improvement programs should be applied to the huge asset owning companies that have `little-chaebol' tendencies by excluding them from the top 30 list," said a government source. The government plans to exclude conglomerates from the top 30 list that have only one large corporate shareholder, as opposed to individual shareholders. Conglomerates owned by a company will no longer be classified as a chaebol. Moreover, the government hopes to cut down what it sees as irrational business expansion and debt-based management. In addition, the government aims to raise the current loan ceiling of 25 percent of a company's total net worth. The government decided to stay with the current system since it found that removing the 200 percent debt-to-equity ratio rule for the companies with high interest coverage ratio (ICR) is not efficient. The ICR tests the ability of a company to make interest payments on its loans or corporate bonds with the profit it makes from business operations. =============== M A L A Y S I A =============== AYER HITAM: Unit Suspends Interest Payment ------------------------------------------ Ayer Hitam Dredging Malaysia Berhad's wholly owned subsidiary, Motif Harta Sdn Bhd Motif Harta Sdn Bhd (MHSB) further suspended its interest and principal sum payments amounting to RM3,475,090.30 as of 13 August 2001 due to several financial institutions (the Lenders) under the RM63million Syndicated Term Loan (STL) facilities. The total principal drawdown and outstanding on the STL facilities as of 13 August, 2001, is RM22.8million. The Company has proposed a debt-restructuring scheme to its Lenders and is awaiting their formal response, which is expected soon. EPE POWER: Monthly Interest Payment Defaulted --------------------------------------------- EPE Power Corporation Berhad has further defaulted on the payment of monthly interest of RM682,171.44 due to several banks (Lenders) under its revolving credit (RC) facilities. The total principal outstanding on the RC facilities as of 13 August, 2001 is RM94.6million. With the assistance of Commerce International Merchant Bankers (CIMB) as the financial advisor, the company has presented a concept paper for the debt-restructuring scheme to the Lenders and negotiations are currently taking place. ISUTA HOLDINGS: Conversion Price Of RM1.5 Per Share --------------------------------------------------- Commerce International Merchant Bankers Berhad (CIMB), in behalf of Isuta Holdings Berhad (IHB), announces that the conversion price of the irredeemable convertible unsecured loan stocks to be issued pursuant to the Proposed Debt Restructuring is fixed at RM1.50 per IHB share, being at a premium of 12 percent over the five (5)-day weighted average market price of IHB shares to August 15, 2001 of RM1.34. LAND & GENERAL: Unit Defaults On Shares Redemption -------------------------------------------------- Land & General Berhad's (L&G) wholly-owned subsidiary, Bandar Sungai Buaya Sdn Bhd (BSB), has defaulted on its financial obligation to redeem 41,000 redeemable preference shares of RM1.00 each (RPS) at par amounting to RM41,000, and to settle a deferred cash payment of RM28,464,264.59 which represents partial settlement of the purchase consideration in relation to the acquisition of 3,094.5 acres of land in 1996 by BSB from Murna Jaya Development Berhad (MJD). Therefore, the aggregate total financial obligation of BSB which was due and payable to MJD on 12 August, 2001 amounted to RM28,505,264.59. By a joint venture agreement between L&G and MJD on 16 May 1996 and as amended by two supplemental agreements on 23 May 1996 and 23 November 2000 (collectively hereinafter referred as JVA), the parties to the JVA agreed to undertake the development of a township on a joint venture basis through BSB. MJD represents 363 families of the Federal Land Development Authority (Felda), settlers who originally owned the land, which was subsequently sold to MJD through individual sale and purchase agreements. Pursuant to the JVA, BSB had acquired 3,094.5 acres of land from MJD for the purchase consideration of RM374.3 million, of which RM65.1 million has been paid. The remaining RM309.2 million is to be satisfied by the issuance of 309,267 RPS which is redeemable at par and deferred cash payment of RM308.9 million to be settled over four years commencing in year 2000 (payment dates). The redemption of the RPS and the settlement of the deferred cash payment of RM308.9 million are guaranteed by L&G. During the period 1998 to 2000, BSB had prepaid, in the form of cash and properties totaling RM66.6 million ("contra amount"), to MJD. As provided in the JVA, the contra amount shall be spread over and contra-ed against the deferred cash payments on each of the payment dates. The first payment to MJD comprising the redemption of 41,000 RPS at par and the settlement of a deferred cash payment of RM14,823,165.29 (after deduction of a portion of the contra amount) which was due on 24 August 2000 was fully satisfied on that date by L&G for and on behalf of BSB. On 30 November 2000, L&G had made an announcement in relation to the proposed settlement of the financial obligations of BSB involving the issuance of new L&G ordinary shares of RM1.00 each to raise cash up to RM100 million to pay MJD and L&G for the advance made on 24 August 2000 whilst the balance of RM142.6 million was to be settled by BSB (BSB Settlement Proposal) on or before 12 August 2003. On 5 April 2001, L&G made a subsequent announcement that due to the prevailing stock market sentiment and economic conditions, it had to re-evaluate its debt restructuring scheme which included the BSB Settlement Proposal and the restructuring and rescheduling of its loans/facilities with financial institutions. The Board would also like to inform that BSB and L&G have been and are currently in discussions with MJD to develop a revised proposal to restructure the aforementioned financial obligations of BSB by issuance of equity in BSB (Revised BSB Proposal). The Revised BSB Proposal forms part of the overall debt restructuring exercise of the L&G Group. L&G shall make the announcement to the Kuala Lumpur Stock Exchange in respect of the details of the Revised BSB Proposal in due course. As of the date of this announcement, the Board of Directors is not aware of any legal action being taken against BSB or L&G by MJD. PANGLOBAL BERHAD: Requests Scheme Proposal Approval Extension ------------------------------------------------------------- Panglobal Berhad's (PGB) restructuring proposal approval from the Securities Commission is still pending. As such, Commerce Internationa Merchant Bankers Berhad (CIMB) has applied, on behalf of PGB, to the Kuala Lumpur Stock Exchange to seek a further extension, until 31 December, 2001, to obtain the relevant approval pursuant to PN 4/2001. UH DOVE: FIC Grants Proposal on Debt Workout -------------------------------------------- The Foreign Investment Committee (FIC) has granted UH Dove Holdings Berhad (the Company) its application in respect to the Proposed Rescue/Debt Restructuring, subject to the increase in bumiputra equity to 30 percent by 30 June 2002. The Company is still awaiting approvals from the Securities Commission (SC) and the other relevant regulatory authorities. As announced on 1 March 2001, the Company submitted a plan to regularize its financial condition to the SC, the FIC and the Ministry of International Trade and Industry on 28 February 2001. On 3 August 2001, the company revealed the Kuala Lumpur Stock Exchange, via its approval letter dated 2 August, 2001, granted an extension of two (2) months from 28 June, 2001 to 27 August, 2001 to enable the Company to obtain all necessary approvals from the regulatory authorities. ===================== P H I L I P P I N E S ===================== BELLE CORP: Posts Half-Year Loss of P367.8M ------------------------------------------- Publicly listed leisure estate and gaming firm Belle Corp. revealed its first half net loss of P924.5 million from the year-ago level of P367.8 million due to unit losses and lower property business revenues, the Asian Wall Street Journal reported Wednesday. "The net loss was basically due to the continuing losses from (units) that contributed about PHP656 million in losses," Belle Vice President and Chief Financial Officer Manuel Gana said. The units responsible for the losses are APC Group Inc., an investment-holding company with interests in telecommunications and information technology and Sinophil Corp., an investment- holding company with interests in gaming and leisure. APC reported a net loss of P837.4 million in the first half from P575.5 million a year ago period. Looking ahead, Gana said Belle's performance would depend on how the economy fares during the remainder of the year. It also depends on how soon it can settle its debts. The company is in the process of divesting assets to raise funds for debt payment. METRO PACIFIC: Widens 1st Half 2001 Loss To 80% ----------------------------------------------- Metro Pacific Corp.'s (MPC) net losses widened by 80 percent in the first half of 2001 due to higher financing charges, foreign exchange losses and booked losses of its affiliates, The Philippine Star reported Thursday. The group's consolidated net losses during the period grew to P1.088 billion, up from the P603-million loss a year ago. Operating income, however, was down to P573 million from P1.5 billion last year. MPC President and CEO Ricardo Pascua said the decline in revenues and net operating income were in line with expectations, since MPC has had no significant land sales since 1996. "MPC's management will continue to pursue strategic options to better align MPC's debt to its revenue streams, including the proposed auction of the northern central business district (CBD) area, which together with other on-going initiatives are expected to realize significant cash proceeds," Pascua said. After amassing P12.6 billion in cash from the sale of its non- property assets, the company will pass on new divestments this year and instead concentrate on enhancing the value of the remaining non-core holdings, Business World noted. The proceeds from these divestments were primarily used to reduce the company's debts, which is down to P16.4 billion from P21.8 billion. Over the past two years, MPC disposed of several strategic but non-property assets in line with its shift into a property development company. Among those sold were wholly-owned subsidiaries Metro Bottled Water Corp., Metrolab Industries Inc. and Metrovet Inc.; packaging firm Steniel Manufacturing Corp. and a sizable eight percent stake worth P12.1 billion in telecom giant PLDT. NATIONAL POWER: Excluded From GSIS Insurance Firm Selection ----------------------------------------------------------- The Government Service Insurance System (GSIS) will not allow debt-stricken National Power Corp. (Napocor) to participate in the selection of firms that will cover the insurance policy for its assets worth billions of dollars, The Business World reported Thursday. "GSIS will not allow Napocor's proposal to conduct electronically the bidding for the choice of reinsurers due to the complexities involved in evaluating the financial conditions of the firms. The process of e-bidding encourages transparency. It also opens the door to many players including those inefficient companies," GSIS President and General Manager Winston Garcia said Garcia. He said the process to secure insurance programs for government corporations is exclusive to GSIS as stated under Republic Act 656 or the Property Insurance Law. Garcia blamed Napocor for the delays in the processing of the payments because "its people have been remiss in submitting the documents needed." GSIS refused Napocor's proposal to form a joint committee to handle the bidding for Napocor's insurance needs. NATIONAL BANK: Loss Widens To P1.9B ----------------------------------- Philippine National Bank indicated a net loss of P1.9 billion in the second quarter, compared with a loss of P513.4M a year earlier, as interest income fell and bad loan provisions rose. The bank, which said it lost 3.9B in the first half after earlier reporting a P2 billion loss for the three months to March 31, is struggling with bad loans. PNB last reported a quarterly profit in the third quarter of last year. Provision against bad loans and other possible losses rose to P2 billion from P333.4 million. ================= S I N G A P O R E ================= GOLDEN AGRI: Posts Notice Regarding Substantial Shareholding ------------------------------------------------------------ On August 11 Golden Agri-Resources Limited released this notice: Name of substantial shareholder: First Pacific Company Limited Date of notice to company: 11 Aug 2001 Date of change of shareholding: 11 Aug 2001 Name of registered holder: Witty East Holdings Limited Details: Pursuant to the conditional put and call option agreement dated 10 May 2001 between Asia Food & Properties Ltd (AFP) and Witty East Holdings Limited, the purchaser, relating to shares in the company: (a) The purchaser had an interest in 1,106,024,734 ordinary shares of US$0.10 each in the share capital of the company; (b) PT Indofood Sukses Makmur Tbk Indofood was deemed to have an interest in the shares by reason of its 100 percent interest in the purchaser and through the purchaser's interest in the same; (c) CAB Holdings Limited (CABH) was deemed to have an interest in the shares by reason of its 48 percent interest in Indofood and through Indofood's interest in the same; and (d) First Pacific Company Limited was deemed to have an interest in the Shares by reason of its 100 percent interest in CABH and through CABH's interest in the same, The above particulars of which were previously notified to the company on 10 May 2001. The agreement has on 11 August 2001 lapsed as certain conditions precedent were not satisfied or waived on or before 10 August 2001 in accordance with the terms of the agreement. Accordingly, (i) the Purchaser ceased to have a deemed interest in the shares, (ii) Indofood ceased to have a deemed interest in the shares through the Purchaser and (iii) CABH ceased to have a deemed interest in the shares through Indofood. Consequently, First Pacific Company Limited ceased to have a deemed interest in the Shares through CABH. Shares held in the name of registered holder No. of shares of the change: 1,106,024,734 % of issued share capital: 51 Amount of consideration per share excluding brokerage,GST,stamp duties, clearing fee: Not Applicable Shares held before change: 1,106,024,734 % of issued share capital: 51 No. of shares held after change: 0 % of issued share capital: 0 Holdings of Substantial Shareholder including direct and deemed interest: Deemed Direct No. of shares held before change: 1,106,024,734 0 % of issued share capital: 51 0 No. of shares held after change: 0 0 % of issued share capital: 0 0 Total shares: 0 0 SEMBCORP LOGISTICS: Posts Changes In Substantial Shareholding ------------------------------------------------------------- Sembcorp Logistics Limited announced: Notice Of Changes In Deemed Substantial Shareholding Name of substantial shareholder: The Capital Group Companies, Inc Date of notice to company: 15 Aug 2001 Date of change: 13 Aug 2001 Name of registered holder: Raffles Nominees (Pte) Ltd Details: The reduction in the deemed shareholding was the result of a client retaining their voting rights. Shares held in the name of registered holder No. of shares of the change: 3,244,000 % of issued share capital: 0.38 Shares held before change: 35,604,800 % of issued share capital: 4.18 No. of shares held after change: 32,360,800 % of issued share capital: 3.8 Holdings of Substantial Shareholder, including direct and deemed interest Deemed Shares held before change: 92,423,200 % of issued share capital: 10.86 No. of shares held after change: 89,179,200 % of issued share capital: 10.48 Total shares: 89,179,200 =============== T H A I L A N D =============== B GRIMM: Cites Reasons For Bt35.3M Net Loss Major Variances ----------------------------------------------------------- B. Grimm Engineering Systems Public Company Limited, in its operation results as at June 30, 2001, incurred a Bt35.3 million net loss for the period as reviewed by the auditor. The company had Bt54.4 million net loss of the same period for last year. The company said the major variances of Bt19.1 million comes from the following: Variance from normal Operation (1) Ordinary sales for this period of Bt 41.4 Million decreased by Bt132.56 Million compared with same period last year (2) Gross project margin was recorded as negative at 25 percent of sales compared with the same period of last year at negative 9.34 percent of sales, with some projects production loss during this period due to more spending, including the increased contingency cost for completing the projects. (3) Selling and administration expenses decreased to Bt18.2 million compare with last year for the same period. BANGKOK RANCH: Files Petition For Business Reorganization --------------------------------------------------------- Bangkok Ranch Company Limited, which is engaged in sale of ducks, had its Petition for Business Reorganization filed to the Central Bankruptcy Court: Black Case Number Phor. 23/2542 Red Case Number Phor. 2/2543 Petitioner: Bangkok Ranch Company Limited Planner: Bangkok Ranch Planner Company Limited Debts Owed to the Petitioning Creditor: Bt3,974,098,000.00 Date of Court Acceptance of the Petition: December 9,1999 Court ordered for the business reorganization: January 10, 2000 Announcement of Court Order for Business Reorganization and Appointment of the Planner: in Government Gazette on February 22, 1998 Deadline for Creditors to submit the Application for Payment in Business Reorganization: March 22, 2000 Deadline to object any Applications for Payment in Business Reorganization: April 5, 2000 Deadline for the Planner to submit the Plan to the Official Receiver: May 22, 2000 49 creditors submitted the application for debt repayment in the amount of US$3,138,715,655.64 + US$24,424,320.27 Appointment date for Creditors' meeting to consider the Plan: August 10, 2000 at 9.30 am. Landmark Hotel Court issued an order of accepting the Business Reorganization Plan: August 17, 2000 Announcement of Court Order for accepting the Business Reorganization Plan: in Matichon Public Company Limited and Siam Rath Company Limited: August 24, 2000 Announcement of Court Order for accepting the Business Reorganization Plan: in Government Gazette: September 19, 2000 Contact: Mr. Chalermkiat or Ms. Amornrat, Tel: 6792513 PRASIT PATANA: Administrator Addresses Causes of Net Loss --------------------------------------------------------- Prasit Patana Public Company Limited (PPCL) through its plan administrator PricewaterhouseCoopers Corporate Restructuring Limited, in accordance with the regulations of the Stock Exchange of Thailand (SET), made a clarification on the causes of the differences between the net loss of the company and the consolidated entity consisting of PPCL, Phyathai 2 Hospital Co Ltd (PYT 2) and Phyathai 3 Hospital Co Ltd (PYT 3) for the six months ending 30 June 2001 and the results for the same period ending 30 June 2000. The company said the consolidated financial statements are not directly comparable with those of the six months ended 30 June 2000 because for the six months ended 30 June 2001 the following subsidiaries have not been included in the consolidated statements: - Phyathai IV (Petchburi Road) Hospital Company Ltd (PYT4); - Phyathai Ubol Hospital Company Limited; - Klass-V Company Limited; - Phuket Paradise Company Limited (PP); - Dulwich International Company Limited; and - Phya Thai Herbs Company Limited (Herbs). These companies have not been included because: -each of them is insolvent and most of them are non- operating; - the investments in and loans to these companies have been fully provided for by the holding company and other related companies and are carried in their accounts at NIL value; - it is unlikely that any of those companies that have ceased operations will resume; - PP and Dulwich have undergone restructuring in cooperation with their major creditor and will no longer be controlled by PPCL, and nor can they make any repayment to PPCL in respect of monies owed; - the assets of Klass-V and PYT4 are pledged to creditors who are expected to enforce their securities, and the recoverable values of the assets are not expected to fully repay the creditors concerned; and - none of the companies can fully repay their creditors and therefore the prospects of any recovery to Prasit Patana Public Company Limited or other related companies is so remote as to be discounted. Phyathai Ubol Company Limited, one of the company's subsidiaries, ceased operations by resolution of the board of directors dated August 4, 2001. The three entities comprising the consolidated entity at 30 June 2001 PPCL , PYT 2 and PYT 3 are classified as "core entities". Audited financial statements for the year ended 31 December 2000 are based on the same consolidated entity as reported for 30 June 2001. Aside from the above, the other major item that contributed to the difference in net loss between the two periods is the increase in loss on foreign exchange of Bt85.40 million (consolidated) and Bt84.60 million. THAI PETROLEUM: Ube Industries To Buy Assets For Bt1.27B -------------------------------------------------------- Effective Planners has wrapped up deals to sell non-core assets of Thai Petrochemical Plc (TPI) as well as debts held in two companies to Ube Industries of Japan for 1.27 billion, the Bangkok Post reported August 16. Effective Planners, a subsidiary of Australia-based Ferrier Hodgson, is administering the business rehabilitation plan of TPI, the country's largest corporate debtor with some $3.8 billion in outstanding obligations. Under one deal, Effective Planners agreed to sell debts of TPI Polene Plc held by TPI at a 50 percent discount for a total of Bt1.22 billion. In another deal, it agreed to sell TPI's five million shares in Thai Caprolactam Co for Bt50 million. THAI WAH: Administrator Reports Reorganization Plan Progress ------------------------------------------------------------ Thai Wah Group Planner Company Limited, the plan administrator of Thai Wah Public Company Limited, pursuant to the Central Bankruptcy Court order on February 14, 2001 approving the Business Reorganization Plan, reported the progress of the implementation of the Business Reorganization Plan: 1. On June 29, 2001 the Company has already effected principal and interest payment due on June 29, 2001 to the creditors in the Debt Restructuring Agreement totaling US$1.81 million and Bt32.85 million. 2. The Company has procured a subsidiary company named Koh Chang Laguna Company Limited to sell land at Trad Province, one of the non-core assets, to Mr. Pisute Ratanawongse and friends. Proceeds from sale is Bt9.5 million above the minimum asset price indicated in the Business Reorganization Plan. 3. On August 9, 2001 the Plan Administrator with the resolution from the Creditors' Steering Committee has filed a petition to the Central Bankruptcy Court to extend the execution of the security documents due on August 14, 2001 for another 30 days to be due on September 13, 2001. 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. Lyndsey Resnick, Roy Tabamo, Maria Vyrna Nineza, 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 ***