/raid1/www/Hosts/bankrupt/TCRAP_Public/010924.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, September 24, 2001, Vol. 4, No. 186
Headlines
A U S T R A L I A
ANSETT AUSTRALIA: Banks Post Financial Exposure
ANSETT AUSTRALIA: Qantas Issues Update Re A320 Aircraft
AUSTRIM NYLEX: Cites No Reason For Price, Volume Increase
COVE RESORT: Director Faces ASIC Charges
ENERGY EQUITY: Merger Negotiations Begun With Pacific Energy
MTM ENTERTAINMENT: Postpones Mediation With Force
NEWCREST MINING: Maple-Brown Changes Stake
PACIFIC DUNLOP: Posts Notice Of Directors' Interests
PASMINCO CENTURY: Century Zinc Mine Contract Continues
PASMINCO GROUP: Impact On Australian Banks
SCANBOX ENTERTAINMENT: Suspends Payment,Appoints Administrator
C H I N A & H O N G K O N G
FOURSEAS.COM: Posts Financial Announcement Summary
HENDERSON CYBER: Loss Balloons To HK$84.25M
HIGHT PROJECTS: Petition To Wind Up
LONG HILL: Winding Up Petition Hearing Set
POLYRIGHT ENGINEERING: Hearing of Winding Up Petition Set
SUM YIP-UTC: Winding Up Petition Slated For Hearing
SHIN SHIN: Winding Up Petition Pending
I N D O N E S I A
CHANDRA ASRI: Acquisition By Foreign Investor Likely
DAVOMAS ABADI: Widens Net Loss To Rp87.69B
J A P A N
ASAHI BANK: Agrees To Merge With Daiwa
FUJITSU LIMITED: Irish Plant Shutdown Scheduled
KOMATSU LIMITED: Given Lower Credit Rating By S&P
MYCAL CORPORATION: Wal-Mart Negotiates For Half Interest
SANYO SHINPAN: S&P Revises Ratings To Negative
SEAGAIA: Ripplewood, Government To Sign Seagaia Memo
K O R E A
ASIANA AIRLINES: Requests For Government Aid Forthcoming
DAEWOO ENGINEERING: Collects US$9.5M From Libya
DAEWOO MOTOR: Sale To GM To Be Signed Friday
HANBO STEEL: November Sale Likely
HYNIX SEMICONDUCTORS: Creditors To Extend New Loans
KOREA ELECTRIC: Unit Sale Imminent
SAMSUNG ELECTRONICS: Shares Hit Year Low
M A L A Y S I A
AUTOWAYS HOLDINGS: KLSE Grants Two-Month Extension
BRIDGECON HOLDINGS: KLSE Grants Announcement Extension
CONSTRUCTION AND SUPPLIES: KLSE Grants Time Extension Request
GOLD BRIDGE: Unit's Winding-Up Petition Hearing Scheduled
LIEN HOE: Posts The Loan Stocks Defaulted Payments
MYCOM BERHAD: Sees No Reason For Unusual Market Activity
PERBADANAN JOHOR: Fails To Redeem Rm400M Fixed-Rate Bonds
PERNAS INTERNATIONAL:RAM Downgrades Debt Securities To BBB3(s)
SISTEM TELEVISYEN: Court Order Lapsed Due To Aborted Scheme
SPORTMA CORPORATION: Time Extension Application Granted
TAP RESOURCES:Proposes New Memorandum, Articles Of Association
P H I L I P P I N E S
ASB GROUP: Debt Settlement Agreement With Allied Granted
NATIONAL STEEL: Allengoal Wants Lease Enforced
NATIONAL STEEL: Opening Planned Despite Hottick's Uncertainty
URBAN BANK: Exportbank Pays Urban Clients
VICTORIAS MILLING: Posts Urgent Manifestation and Motion
S I N G A P O R E
AMTEK ENG'G: Director Foo Shu Huan Lawrence Changes Interest
AMTEK ENGINEERING: Director Lai Fook Kuen Changes Stake
CAPITALAND LIMITED: Confirms Issues Re Business Times'Articles
FHTK HOLDINGS: High Court Confirms Capital Reduction
HONG LEONG: Posts Changes In Shareholder's Stake
L&M GROUP: Director Edward Seky Soeryadjaya Changes Interest
T H A I L A N D
EMC PUBLIC: Posts Change In Paid Up Capital
EMC PUBLIC: Posts Shares Sale Report
THONBURI AUTOMOTIVE: Petition For Business Reorg Filed
TPI POLENE: Potential Buyers To Present Offers On September 25
- - - - - - - -
=================
A U S T R A L I A
=================
ANSETT AUSTRALIA: Banks Post Financial Exposure
-----------------------------------------------
To clarify market uncertainty, Westpac confirmed that its
combined direct credit exposure to Ansett and Air New Zealand is
less than $6 million.
Consistent with Westpac's dynamic provisioning approach, all
problem credit exposures are provided for in respect to
anticipated losses. Total provisions for bad and doubtful debts
stood at A$1,565,000 as of 31 March 2001.
Westpac's full year earnings expectations are unaffected, as
under Westpac's dynamic provisioning process Westpac has
foreseen the need to provide against Ansett exposure.
National Australia Bank Limited also detailed its lending
exposure:
* A$43 million in unsecured lending and contingent liabilities
* A$39 million in secured lease contracts
* As yet undetermined credit card charge back entitlements
Exposure to credit card charge backs relating to Ansett cannot
be provided until the voluntary administrator makes it clear
that people holding future dated tickets have no prospect of
flying, and other matters have been clarified.
ANSETT AUSTRALIA: Qantas Issues Update Re A320 Aircraft
-------------------------------------------------------
Qantas Airways said Friday that a number of major issues need to
be resolved before Ansett A320s start to fly under an agreement
with Qantas.
Qantas Chief Executive Officer Geoff Dixon said, "We are
continuing to work with the Administrator to resolve the
outstanding issues but the reality is that they will not be able
to put these aircraft in the air before Monday, at the
earliest."
Dixon said the Administrator is attempting to finalize a range
of issues, including indemnities and rights to operate the
aircraft. Qantas should then undertake essential safety audits
on the proposed Ansett operation when an agreement is reached.
Dixon also said the Administrator is demanding that all the A320
aircraft operate from Ansett terminals, requiring passengers to
check-in at a Qantas terminal and then travel by bus or other
means to an Ansett terminal.
"This is impractical, will cause great and unnecessary
inconvenience and will delay thousands of passengers," Dixon
stated.
Dixon said the rate Qantas will pay for leasing the aircraft is
well above current commercial rates and can not be sustained. He
added, however, that the Administrator is only prepared at this
stage to provide the 10 A320 aircraft for a period of seven
days.
Qantas is examining other options to obtain the capacity that is
urgently needed to satisfy the demand for domestic travel.
AUSTRIM NYLEX: Cites No Reason For Price, Volume Increase
---------------------------------------------------------
Austrim Nylex Limited (the Company) advised that the Company is
not aware of any information that would explain the recent
trading in the Company's securities.
On 13 September, the Company released accounts covering the
2000/2001 financial year. In the Appendix 4B Preliminary Final
Report, the Company disclosed that a standstill agreement had
been reached with the entity's Banks. This agreement is
conditional upon certain approvals. Discussions with the Banks
are well advanced and the Company is very confident a
satisfactory outcome will develop early next week.
The Company continues to maintain a policy of full disclosure on
any issues which could be considered market sensitive. The
Company was surprised by media reports on the ABC radio station
3LO on Friday that linked Austrim Nylex with Ansett, resulting
in a number of inquiries being received from analysts. The
Company moved to deal with this rumor by releasing a statement
to the ASX categorically stating there was no connection or
financial exposure with Ansett the same day.
The results for the six months to 31 December 2000 included
profits from a number of asset sales. The six months to 31
December 2001 are not expected to include any such profits.
Primarily for this reason, operating profit before abnormal
items and income tax will vary by more than 15% so that the
figure for the half-year ending 31 December 2001 will be less
than the profit for the half year ended 31 December 2000.
However, it is expected that the result will accord with the
forecast of $100 million EBITDA for the year ending 30 June 2002
as announced to the ASX an 26 June 2001
There is no reason to think that the Company may record any
material abnormal or extraordinary loss for the half year ending
31 December 2001
The Company does not know of any reason for the price change and
increase in volume in the securities of the Company.
COVE RESORT: Director Faces ASIC Charges
----------------------------------------
Darryl John Loane appeared in the Southport Magistrates Court on
three charges laid by the Australian Securities and Investments
Commission (ASIC) relating to his involvement as a director of
the failed company Capital Asset Holdings Ltd (formerly Cove
Resort Pty Ltd).
Loane, of Gold Coast, Queensland, was a director of Cove Resort
Pty Ltd.
He has been charged with one count of dishonestly obtaining a
loan totaling $4,700,000 from Lawloan Mortgages Pty Ltd, plus
one count each of forging a document and altering a document
required for procuring the registration of title to land in
Queensland.
Loane was released on bail on the conditons that he surrenders
his passport, informs of any changes of address, and stays away
from international points of departure.
The case was adjourned for a committal mention at Southport
Magistrates Court on 14 November 2001.
The matter is being prosecuted by the Commonwealth Director of
Public Prosecutions.
ENERGY EQUITY: Merger Negotiations Begun With Pacific Energy
------------------------------------------------------------
Energy Equity Corporation Ltd (EEC) and Pacific Energy Ltd (PEL)
revealed they have commenced negotiations to explore a possible
merger of both companies' commercial interests.
It is hoped that these negotiations will lead to an agreement
that can be presented to the EEC shareholders for approval.
MTM ENTERTAINMENT: Postpones Mediation With Force
-------------------------------------------------
The MTM Entertainment Trust (MME) and Force Corporation Limited
(Force) of New Zealand have decided to postpone the mediation
scheduled for September 20, 2001 in favor of direct talks
between MME and Force.
MME will advise the market of the discussions' outcome.
NEWCREST MINING: Maple-Brown Changes Stake
------------------------------------------
Maple-Brown Abbott Limited changed its relevant interest in
Newcrest Mining Limited on 17/September/2001, from 22,139,201
fully paid ordinary shares (9.14 percent) to 22,771,949 fully
paid ordinary shares (8.14 percent).
PACIFIC DUNLOP: Posts Notice Of Directors' Interests
----------------------------------------------------
Pacific Dunlop Limited posted these notices of directors'
interest:
NOTICE OF DIRECTOR'S INTERESTS
Section 205G of the Corporations Law
UPDATING NOTICE
Name of Director Sarah Carolyn Hailes Kay
Name of Company Pacific Dunlop Limited
Date of Last
Notification to ASX 20/06/2001
Date Director's
Interest Changed 14/09/2001
"I have a relevant interest in the following securities of the
company or related bodies corporate:
11,735 ordinary shares
On market purchase of 2,417 ordinary shares at $0.72 per share
pursuant to the Pacific Dunlop Non-Executive Directors Share
Plan.
"I have an interest in the following contracts to which I am
entitled to a benefit that confers a right to call for or
deliver shares in, debentures of, interests in a collective
investment scheme made available by, the company or a body
corporate: N/A"
NOTICE OF DIRECTOR'S INTERESTS
Section 205G of the Corporations Law
UPDATING NOTICE
Name of Director Ian Ernest Webber
Name of Company Pacific Dunlop Limited
Date of Last
Notification to ASX 20/06/2001
Date Director's
Interest Changed 14/09/2001
"I now have a relevant interest in the following securities of
the company or related bodies corporate:
71,666 ordinary shares
On market purchase of 2,417 ordinary shares at $0.72 per share
pursuant to the Pacific Dunlop Non-Executive Directors Share
Plan.
"I have an interest in the following contracts to which I am
entitled to a benefit that confers a right to call for or
deliver shares in, debentures of, interests in a collective
investment scheme made available by, the company or a body
corporate: N/A"
NOTICE OF DIRECTOR'S INTERESTS
Section 205G of the Corporations Law
UPDATING NOTICE
Name of Director Anthony Bowen Daniels
Name of Company Pacific Dunlop Limited
Date of Last
Notification to ASX 20/06/2001
Date Director's
Interest Changed 14/09/2001
"I now have a relevant interest in the following securities of
the company or related bodies corporate:
12,190 ordinary shares
On market purchase of 2,458 ordinary shares at $0.72 per
share pursuant to the Pacific Dunlop Non-Executive Directors
Share Plan.
"I have an interest in the following contracts to which I am
entitled to a benefit that confers a right to call for or
deliver shares in, debentures of, interests in a collective
investment scheme made available by, the company or a body
corporate: N/A"
NOTICE OF DIRECTOR'S INTERESTS
Section 205G of the Corporations Law
UPDATING NOTICE
Name of Director Herbert James Elliott
Name of Company Pacific Dunlop Limited
Date of Last
Notification to ASX 20/06/2001
Date Director's
Interest Changed 14/09/2001
I have a relevant interest in the following securities of the
company or related bodies corporate:
14,650 ordinary shares
On market purchase of 2,294 ordinary shares at $0.72 per share
pursuant to the Pacific Dunlop Non-Executive Directors Share
Plan.
"I have an interest in the following contracts to which I am
entitled to a benefit that confers a right to call for or
deliver shares in, debentures of, interests in a collective
investment scheme made available by, the company or a body
corporate: N/A"
NOTICE OF DIRECTOR'S INTERESTS
Section 205G of the Corporations Law
UPDATING NOTICE
Name of Director John Theodore Ralph
Name of Company Pacific Dunlop Limited
Date of Last
Notification to ASX 20/06/2001
Date Director's
Interest Changed 14/09/2001
"I have a relevant interest in the following securities of the
company or related bodies corporate:
78,192 ordinary shares
On market purchase of 6,229 ordinary shares at $0.72 per share
pursuant to the Pacific Dunlop Non-Executive Directors Share
Plan.
"I have an interest in the following contracts to which I am
entitled to a benefit that confers a right to call for or
deliver shares in, debentures of, interests in a collective
investment scheme made available by, the company or a body
corporate: N/A"
PASMINCO CENTURY: Century Zinc Mine Contract Continues
------------------------------------------------------
Pasminco Group Limited posted the announcement by Henry Walker
Eltin in respect to the REJV, an equity accounted joint venture
of the Henry Walker Eltin Group Limited, which is contracted to
conduct mining at the Century zinc mine under a contract with
Pasminco Century Mining Limited.
Senior management of Henry Walker met September 20, 2001 with
representatives of the administrator appointed to Pasminco, and
Pasminco management.
Henry Walker has been advised that:
* operations at the Century mine will continue, with the mine
being subject to the strategic review of Pasminco's assets that
is currently underway.
* that the REJV will be paid in full in respect of all amounts
to which it is legally entitled.
Pasminco Century Mining Limited has paid all progress claims by
the REJV that are due to date.
As shareholders in the REJV, Henry Walker Eltin is pleased to
continue operations at the Century mine pursuant to the contract
with Pasminco Century Mining Limited.
Henry Walker Eltin holds a 50% interest in the REJV.
PASMINCO GROUP: Impact On Australian Banks
------------------------------------------
Bank of Western Australia Ltd advised that it has an indirect
exposure to the Pasminco Group of A$22.5M in relation to
structured financing. The Bank expects to make a full recovery.
Westpac Banking Corporation also confirmed that its direct
credit exposure to Pasminco, which has been placed in voluntary
administration, is approximately A$195 million.
National Australia Bank Limited detailed its lending exposure,
as follows:
* A$18 million in unsecured lending
* A$140 million in unsecured foreign exchange exposure, which
ranks with other unsecured lending $53 million in secured lease
contracts
It is expected that a substantial portion of the exposures will
be recovered.
As of 31 March, 2001 total provisions for doubtful debts of the
National Australia Bank Group were A$2.981 billion.
SCANBOX ENTERTAINMENT: Suspends Payment,Appoints Administrator
--------------------------------------------------------------
The Board of Scanbox Asia Pacific Limited (SAPL) has been
notified that Scanbox Entertainment AS (cvr 25356284), a
subsidiary of VCL Film and Media AG DE and the proposed
registered holder of a parcel of 20625010 (51.56%) shares in
SAPL, has suspended payments to creditors and appointed two
administrators. SAPL is not a creditor.
================================
C H I N A & H O N G K O N G
================================
FOURSEAS.COM: Posts Financial Announcement Summary
--------------------------------------------------
Fourseas.com Limited posted the following financial
announcement:
Year ending 31/12/2001
Currency: HK$ (Unaudited)
(Unaudited) Last
Current Corresponding
Period Period
from 1/1/2001 from 1/1/2000
to 30/6/2001 to 30/6/2000
('000) ('000)
Turnover : 333,878 339,336
Profit/(Loss) from Operations : (86,545) (9,283)
Finance cost : (8,907) (7,548)
Share of Profit/(Loss) of Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (95,452) (16,831)
% Change over Last Period : N/A
EPS/(LPS)-Basic : (25.07 cents) (13.71 cents)
-Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (95,452) (16,831)
Interim Dividend per Share : Nil Nil
(Specify if with other options) : N/A N/A
B/C Dates for Interim Dividend : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : N/A
B/C Dates for Other Distribution : N/A
Remarks:
1. BASIS OF PREPARATION
In preparing the interim financial report, the directors have
given careful consideration to the future liquidity of the
Company and its subsidiaries (collectively referred to the
"Group" hereinafter). At 30 June 2001, the Group had net current
liabilities of approximately HK$117 million and net liabilities
of approximately HK$83 million.
The Company raised HK$70 million from the issue of 3,500,000,000
new shares of HK$0.02 each to Giant Glory Asset Limited ("Giant
Glory") subsequent to 30 June 2001. The proceeds were used to
repay the amount due to a group company of South China
Information and Technology Limited ("SCIT"), a controlling
shareholder of the Company prior to the completion of the
transaction. Since then, the financial position of the Group
has improved significantly.
In addition, the Group disposed of the entire interest in
certain of its subsidiaries engaged in property investment and
49% equity interest in certain subsidiaries engaged in the sales
of air tickets and the provision of other related travel
services to SCIT for a consideration of HK$15 million subsequent
to 30 June 2001. HK$14 million of the proceeds were also used
to repay the amount due to a group company of SCIT. As a result
of this transaction, the corresponding mortgaged properties and
bank borrowings have been disposed of and the amount of working
capital required to meet the principal and interest repayment of
such bank borrowings has been greatly reduced.
Pursuant to a management agreement entered into between the
Group and SCIT on 18 June 2001, SCIT unconditionally and
irrevocably undertakes with the Group the provision of normal
working capital for the operation of the Group's sales of air
tickets and the provision of other related travel services. The
agreement is for a period of 12 months, after the completion of
transactions as set out above.
In light of the favorable outcomes of the above arrangements,
the directors of the Company are satisfied that the Group will
be able to meet in full its financial obligations as they fall
due for the foreseeable future and have, accordingly, prepared
the interim financial report on a going concern basis.
2. TAXATION
No provision for Hong Kong Profits Tax has been made as the
Company and its subsidiaries had no assessable profit for the
period.
There was no significant unprovided deferred taxation for the
period or at the balance sheet date.
3. LOSS PER SHARE
The calculation of the basic loss per share is based on the net
loss for the period of HK$95,452,000 (2000: HK$16,831,000) and
on 380,782,558 shares (2000: weighted average number of
122,758,759 shares) in issue during the period after adjusting
for the effect of the consolidation of the Company's shares on
29 August 2001.
The comparative weighted average number of ordinary shares in
issue during the six months ended 30 June 2000 has also been
adjusted for the effect of the open offer of shares (Open
Offer") at a subscription price of HK$0.02 per offer share to
those qualifying shareholders on 17 July 2000 on the basis of
three offer shares for every one ordinary share in issue on 27
June 2000. Details of the Open Offer are set out in the
announcement dated 29 May 2000. Accordingly, the basic loss per
share for the six months ended 30 June 2000 has been adjusted.
There were no dilutive potential ordinary shares in issue for
the six months ended 30 June 2001.
Diluted loss per share was not presented for the six months
ended 30 June 2000 because the exercise price of the Company's
warrants was higher than the average market price for shares for
that period.
HENDERSON CYBER: Loss Balloons To HK$84.25M
-------------------------------------------
Henderson Cyber, the growth Enterprise Market-listed technology
flagship of Henderson Land Development, reported losses in the
year to June 30 grew to HK$84.25M on a pro-forma basis. The
company's losses expanded despite HK$45.35M in interest income
on HK$894M of proceeds from its share offering and listing in
July last year.
Henderson Cyber, set up in January last year, provides Internet
access using wireless technology. It offers Internet access and
content services delivered via television and is engaged in
Internet security. Turnover in the year jumped to HK$28.3M from
HK$5.5M a year earlier. Most of Henderson Cyber's turnover was
derived from Internet service subscription fees and rental
income from set-top boxes for the company's television-Internet
service.
Analysts said the company, a latecomer to the market, faced
fierce competition in the Internet access and online brokering
markets, which saw aggressive fee discounting. Despite keen
competition, the company said it would not exit the wireless
Internet access business and was targeting a modest 1% share of
the broadband sector. It promised to commit HK$220M over three
years to its network roll out.
HIGHT PROJECTS: Petition To Wind Up
-----------------------------------
The petition to wind up High Projects Industrial Limited is set
for hearing before the High Court of Hong Kong on October 3,
2001 at 9:30 am.
The petition was filed with the court on July 12, 2001 by The
China State Bank, Limited, a banking corporation duly
incorporated under the laws of the People's Republic of China
and having branch office at No. 39-41 Des Voeux Road Central,
Hong Kong.
LONG HILL: Winding Up Petition Hearing Set
------------------------------------------
The petition to wind up Long Hill Properties Limited is
scheduled to be heard before the High Court of Hong Kong on
November 21, 2001 at 9:30 am.
The petition was filed with the court on August 9, 2001 by Sin
Hua Bank Limited, a banking corporation duly incorporated under
the laws of the People's Republic of China. The branch office is
at No. 2A Des Voeux Road Central, Hong Kong
POLYRIGHT ENGINEERING: Hearing of Winding Up Petition Set
---------------------------------------------------------
The petition to wind up Polyright Engineering Limited is
scheduled for hearing before the High Court of Hong Kong on
October 3, 2001 at 9:30 am. The petition was filed with the
court on the 24th day of August 2001 by Kincheng Banking
Corporation having branch office at Kincheng Bank Building, No.
55 Des Voeux Road Central, Hong Kong.
SUM YIP-UTC: Winding Up Petition Slated For Hearing
---------------------------------------------------
Sum Yip-Utc (Hk) Company Limited is facing a winding up
petition, which is slated to be heard before the High Court of
Hong Kong on December 19, 2001 at 9:30 am.
The petition was filed on August 27, 2001 by Sin Hua Bank
Limited, a banking corporation duly incorporated under the laws
of the People's Republic of China. The branch office is at No.
2A Des Voeux Road Central, Hong Kong.
SHIN SHIN: Winding Up Petition Pending
--------------------------------------
Shin Shin General Electric Company Limited is facing a winding
up petition, which is slated to be heard before the High Court
of Hong Kong on October 3, 2001. The petition was filed on July
13, 2001 by Kincheng Banking Corporation. The branch office is
at Kincheng Bank Building, No. 55 Des Voeux Road Central, Hong
Kong.
=================
I N D O N E S I A
=================
CHANDRA ASRI: Acquisition By Foreign Investor Likely
----------------------------------------------------
Two foreign investors have expressed interest in acquiring
government stakes in the financially ailing PT Chandra Asri
Petrochemical Center, Jakarta Post reported Friday citing
Financial Sector Policy Committee (FSPC) Secretary, Syafruddin
A. Temenggung.
The government is considering selling its stake as part of the
restructuring of Chandra Asri's huge debts.
"The government [i]s still seeking the best possible way to
restructure Chandra Asri's debts," Syafruddin said.
Committee secretary Syafruddin declined to confirm an earlier
report by the Dow Jones newswire, which quoted him as saying
that three investors, U.S.-based investment firm Goldman Sachs,
Malaysia's state-owned oil and gas company Petronas and British-
based oil and gas company BP Plc., were eying Chandra Asri.
He said the government could expect proceeds of between $800
million and $1 billion from the sale of its stake in Chandra
Asri.
Chandra Asri supplies raw material for plastic, textile and
chemical industries. It owes some US$730 million to a consortium
led by Japan's Marubeni Corp., and another $464 million to the
Indonesian Bank Restructuring Agency (IBRA), which took over
loans from troubled local banks in the wake of the 1997
financial crisis.
DAVOMAS ABADI: Widens Net Loss To Rp87.69B
------------------------------------------
PT Davomas Abadi suffered a Rp87.69 billion net loss during the
first half of 2001, up from a Rp72.82bn loss in the year-ago
period due to non-operating expenses that amounted to
Rp104.29bn, an increase from the preceding year's Rp94.75bn,
IndoExchange reported September 19, 2001.
The high expenses were mostly due to foreign exchange loss that
stood at Rp98.07bn, the previous year's loss being Rp78.67bn.
The company was suffering a capital deficiency, its equity a
minus Rp153.93bn. Davomas' stock price rose Rp75 or 11.11% to
Rp750 at midday session.
Davomas, established in 1990, is a manufacturer of cocoa beans,
and cocoa butter, raw materials for cosmetics and pharmaceutical
products, and cocoa powder.
=========
J A P A N
=========
ASAHI BANK: Agrees To Merge With Daiwa
--------------------------------------
Japan's Asahi Bank Ltd and Daiwa Bank Ltd reached a basic
agreement on a plan that would combine the two banks under a
holding company within the business year to March 2002, the
Nihon Keizai Shimbun reported Friday.
The two banks were expected to issue brief details of the
agreement in a Friday news conference. However, a Daiwa
spokesman claimed, "We are still in the middle of talks. At this
moment, we have not reached an agreement yet and have not set
any announcement schedule."
Under the plan, it is thought Daiwa Bank would set up a holding
company, and Asahi Bank would become a unit of that company,
thereafter, the latter would be split into independent units
focused on regional areas of operation in the spring of 2003.
Daiwa Bank's trust banking division would absorb Asahi Bank's
wholly owned subsidiary, Asahi Trust and Banking Co Ltd, within
the business year.
FUJITSU LIMITED: Irish Plant Shutdown Scheduled
-----------------------------------------------
Fujitsu Ltd. and Shinko Electric Industries of Japan agreed to
close their semiconductor plant in Dublin this November with the
loss of 340 jobs, News On Japan reported Thursday.
Both companies blamed the severe downturn in global
semiconductor demand for the closure of their factory, located
in Tallaght, south Dublin, which makes chips for mobile phones.
Shinko Electric holds a 51.1 percent stake in the plant while
Fujitsu, which is Shinko's majority shareholder, owns the rest.
KOMATSU LIMITED: Given Lower Credit Rating By S&P
-------------------------------------------------
Standard & Poor's Corp. (S&P) has revised the outlook on its BBB
long-term corporate credit rating for Komatsu Ltd. from stable
to negative.
"The outlook revision reflects rising concerns over Komatsu's
ability to sustain its current level of earnings and cash flow
over the next year or two, amid increasing business risks in the
global construction machinery industry," S&P said.
The Japan Times reported Friday that S&P has affirmed its BBB
rating on the construction machinery firm, citing its strong
market position in the industry and potential to mitigate a
prolonged downturn in domestic demand.
However, S&P noticed that Komatsu's two major overseas markets
are likely to experience marked decline in demand and increasing
price competition over the next two years, resulting in weaker
profitability.
MYCAL CORPORATION: Wal-Mart Negotiates For Half Interest
--------------------------------------------------------
The world's largest retailer, U.S. based Wal-Mart Stores Inc.,
is in final phase of negotiations on buying more than 50 percent
of the supermarket chain Mycal and eventually taking over the
management of the 96 outlets deemed profitable, the Daily
Yomiuri reported Friday.
A deal between both parties is expected soon and Wal-Mart is
likely to pay as much as Y100 billion for the purchase.
This will be the first time a foreign firm has bought into a
leading Japanese supermarket chain, an event expected to spur a
realignment of ailing supermarket chain operators in this
country.
The American retail giant has the choice either to establish a
company to take over the Mycal outlets or directly invest in the
Japanese supermarket chain by buying more than 50 percent of its
shares.
Mycal has filed for court protection under a law that allows an
ailing company to continue its rehabilitation efforts on its own
initiative. If Mycal reaches an agreement with Wal-Mart, it will
include the agreement in its rehabilitation plan and submit the
plan to its creditors.
SANYO SHINPAN: S&P Revises Ratings To Negative
----------------------------------------------
Standard & Poor's revised the outlook on its triple-'B' long-
term rating on Sanyo Shinpan Finance Co. Ltd. to negative from
stable. At the same time, Standard & Poor's affirmed the long-
term and 'A-2' short-term ratings on Sanyo Shinpan.
The outlook revision is based on the expected negative impact
from the possible failure of Mycal Corp., the parent company of
Mycal Card of which Sanyo Shinpan acquired a majority
shareholding in April 2001. Mycal Corp. is reported to be
considering filing for bankruptcy. Standard & Poor's today
downgraded Mycal Corp. to 'CCpi' from 'Bpi'.
Although the earnings from the card business would not
experience an immediate impact from these actions, over the
medium term Mycal Card's business franchise is likely to be
adversely affected by the reduction in the number of Mycal group
outlets and damage to the group's brand recognition.
Given the size of Mycal Card's operations relative to those of
Sanyo Shinpan, the negative effect from the deteriorated
earnings prospects of Mycal Card on Sanyo Shinpan's financial
profile over the medium term is a concern. Nevertheless, the
company's solid core earnings and capitalization support the
rating on Sanyo Shinpan, while any reduction in profits likely
to stem from the difficulties faced by the card business will
not be immediate.
OUTLOOK: NEGATIVE
The outlook reflects the increased uncertainty stemming from the
possible failure of Mycal Card's parent group. Mycal Card's
business franchise is likely to be adversely affected by this
action in the medium term, which, in turn, may have a negative
impact on Sanyo Shinpan's financial profile.
RATINGS AFFIRMED; OUTLOOK REVISED
Sanyo Shinpan Finance Co. Ltd.
Counterparty credit rtg BBB/Negative/A-2
Snr unsecd debt BBB
Med term nts BBB/A-2
SEAGAIA: Ripplewood, Government To Sign Seagaia Memo
----------------------------------------------------
The Miyazaki Prefectural Government and U.S. investment fund
Ripplewood Holdings LLC will sign a mid-October memorandum of
cooperation. The parties will team up to attract domestic and
foreign tourists to the Seagaia resort complex, Japan Times
reported Friday.
The memorandum also states that the groups will pledge to
jointly develop the local tourism industry and that Ripplewood
should inform the local government of significant changes in
Seagaia management.
The failed Seagaia resort complex was recently acquired by
Ripplewood in an acquisition of its Y7.32 billion in shares,
newly issued after a 100 percent capital cut.
Seagaia operator Phoenix Resort Co. and its two affiliates filed
for court protection from creditors in February with Y326.1
billion in debts making it the largest failure ever of a
semipublic entity. The Miyazaki Prefectural Government had a 25
percent stake in Phoenix Resort.
=========
K O R E A
=========
ASIANA AIRLINES: Requests For Government Aid Forthcoming
--------------------------------------------------------
Asiana Airlines and Korea Airlines were expected to submit a
proposal requesting rescue funds to the Ministry of Construction
and Transportation (MOCT) Friday, Digital Chosun reported
Thursday.
The two national flag carriers have decided to ask the
government to defray their operational costs, following the
example set by U.S. airline companies, who have asked the U.S.
government for rescue funds as a direct result of last week's
terrorist attacks.
KAL said in its proposal it is asking the government to cover
all of its security related costs, estimated at W1.6 billion
yearly, and also that the government pay subsidies for its
domestic routes. KAL plans to cancel local flights if the
demands are not met.
The two airliners posted a huge deficit in the first half of
this year because of the sluggish economy.
DAEWOO ENGINEERING: Collects US$9.5M From Libya
-----------------------------------------------
Daewoo Engineering and Construction received a US$9.5 million
installment for proceeds in arrears from Libya this Wednesday.
The company's first installment of US$9.25 million came July 30,
the exact amount promised by Libyan leader Muammar Qaddafi in
March, after he met with the firm's top executives, the Korea
Herald reported Friday.
Daewoo has a total of US$230.6 million in uncollected proceeds
for projects carried out in Libya. The company said it would
receive US$9.5 million monthly for the next 21 months.
TCR-AP reported August 15 that the Company has improved its
performance in the first half of this year, which could lead to
an early release from its creditor-imposed debt-workout program.
DAEWOO MOTOR: Sale To GM To Be Signed Friday
--------------------------------------------
A preliminary sales agreement signing, handing over the ailing
Daewoo Motor to General Motor, was scheduled for Friday,
September 21 at the Korea Development Bank (KDB), Daewoo's
largest creditor.
The Digital Chosun reported Friday that, in the US$1.2 billion
acquisition for bankrupt Daewoo Motor, General Motor will be
paying US$400 million in cash only to the Daewoo creditors.
Contrary to initial expectations, General Motors will not take
over Daewoo's Bupyeong plant, or Daewoo Auto Sales, one of its
affiliates.
Sources close to the negotiations affirmed that the creditors
and GM agreed to set up a new joint venture at US$1.8 billion in
capital and, of the capital, the creditors will be receiving
US$1.2 billion in preferred shares of the joint venture, while
the remainder US$600 million will be shared by GM for US$400
million, equivalent to a 67 percent stake, and by the creditors
for US$200 million, equivalent to a 33 percent stake.
HANBO STEEL: November Sale Likely
---------------------------------
Korea Asset Management Corporation (KAMCO) said in a statement
that it may finalize the sale of Hanbo Iron and Steel this
November, Korea Herald reported Friday.
An auction to sell the bankrupt Hanbo and possibly the signing
of a final agreement will be made in November.
There are five potential buyers for Hanbo Steel, but KAMCO did
not mention which will take over the steel maker.
The state-run agency, which has been managing Hanbo since it
went bankrupt in 1997, repeatedly failed to sell off Hanbo due
to a lack of potential buyers amid a slowdown in the global
steel industry.
HYNIX SEMICONDUCTORS: Creditors To Extend New Loans
---------------------------------------------------
Creditors of Hynix Semiconductor Inc. said Thursday that they
will try to make new loans to the company by applying the so-
called corporate restructuring promotion law.
They further added that they will push for having all creditor
banks participate in granting fresh loans to Hynix according to
a clause in the law allowing creditor banks to manage an ailing
company jointly.
The Korea Herald reported Friday that creditor banks may extend
fresh loans to the chipmaker while other creditors, including
investment trust and lease companies, extend the maturity of
their bonds.
If that proves to be the case, the creditor banks will take over
the management of the chipmaker. If the banks fail to extend
fresh loans to Hynix, all creditors will vote on whether to
extend new loans to the chipmaker.
KOREA ELECTRIC: Unit Sale Imminent
----------------------------------
The Ministry of Commerce, Industry and Energy said yesterday
that Korea Electric Power Company (KEPCO) is close to selling
its affiliate, Korea Electric Power Corporation (KOPEC), as it
has already sent requests for proposals to five prospective
buyers.
The Korea Herald reported September 21, that Prospective buyers
include Doosan Heavy Industries and Construction, Hyosung Corp.
and Hanjin Transportation Co.
SAMSUNG ELECTRONICS: Shares Hit Year Low
------------------------------------------
The stock price of Samsung Electronics hit a year low Thursday
closing at W154,000 a share, down W10,000 or 6.1 percent from
the previous day.
However, the trading volume of the shares rose to 1.22 million.
Analysts blamed the share's downfall to prolonged sluggish sales
on the global market.
As a result, expectations that chip prices could soar starting
the fourth quarter disappeared, bringing down the share price of
the largest chipmaker in the country.
The Digital Chosun reported Friday that Samsung Electronics'
deficit in its memory chips operation in the third quarter could
very well continue into the fourth quarter.
===============
M A L A Y S I A
===============
AUTOWAYS HOLDINGS: KLSE Grants Two-Month Extension
--------------------------------------------------
Arab-Malaysian Merchant Bank Berhad (Arab-Malaysian) on behalf
of Autoways Holdings Berhad (AHB) announced that the Kuala
Lumpur Stock Exchange has approved AHB's application for an
extension of time for two (2) months from 26 August 2001 to 25
October 2001 to make the Requisite Announcement.
AHB on August 24, 2001 applied to the KLSE for an extension of
time, i.e. period of three (3) months, to make the Requisite
Announcement to regularize its financial condition.
AHB is still in the midst of finalizing the Proposed
Restructuring Scheme.
BRIDGECON HOLDINGS: KLSE Grants Announcement Extension
------------------------------------------------------
Bridgecon Holdings Berhad (Special Administrators Appointed)
(the Company) Announced the Company's application to the Kuala
Lumpur Stock Exchange (KLSE) for an extension of time to make
the Requisite Announcement in accordance with Practice Note No.
4/2001 has been approved by the KLSE.
KLSE has approved an extension of two (2) months from 22 August
2001 to 21 October 2001 to enable the Company to announce its
Requisite Announcement to the KLSE for public release.
The Company will provide the KLSE a detailed progress report on
the development and/or latest status of the regularization
exercise by 17 October 2001 on any development between 10 August
2001 and 16 October 2001.
CONSTRUCTION AND SUPPLIES: KLSE Grants Time Extension Request
-------------------------------------------------------------
Construction and Supplies House Berhad (CASH) informed that on
15 August 2001 CASH applied to the Kuala Lumpur Stock Exchange
(the Exchange) for an extension of time pursuant to Paragraph
5.1 of Practice Note No. 4/2001. The KLSE had, via their letter
dated 18 September 2001, approved an extension of two (2) months
from 26 August 2001 to 25 October 2001 to enable CASH to
announce its Requisite Announcement pursuant to PN4 to the
Exchange.
CASH had proceeded to identify new suitable and profitability
assets to be injected into the Group and is in the midst of
negotiating with various creditors with a view of implementing a
debt restructuring exercise.
GOLD BRIDGE: Unit's Winding-Up Petition Hearing Scheduled
---------------------------------------------------------
Gold Bridge Concrete Sdn Bhd (GCB), a subsidiary of Gold Bridge
Engineering & Construction Berhad (GBE), announced 21 September
2001 that on 17 January 2001 GBC received a Notice Pursuant to
Section 218 of the Companies Act 1965 from the solicitors acting
for NKH Auto Enterprise Sdn Bhd (NKH). The note required GBC to
pay a sum of RM53,013.95 for spare parts purchased (the Debt),
with interest, and costs of RM1,154.00 to NKH within 21 days
under a Judgement dated 7 Dec 2000 obtained by NKH in the
Butterworth Sessions Court 1 Summons No 52-2157-1999. The
execution had not been stayed.
After further discussions with NKH, GBC through their solicitors
Malik & Partners, proposed to settle the Debt by way of six
monthly installments and in return NKH was asked to withhold all
legal proceedings pending settlement of the Debt via their
letter dated 12 February 2001.
However, due to a delay in NKH's solicitors receiving the letter
dated 12 February 2001, a second Section 218 Notice dated 13
February 2001 was issued.
Following further discussions with NKH, GBC issued payments for
the full and final settlement of the Debt in three installments
of RM17,671.32 each, commencing 2 April 2001 via Malik &
Partners letter dated 9 April 2001. Although the cheques have
yet to be presented to date, GBC did not find things to be amiss
because the cheques are still within their validity period and
in the possession of NKH or its solicitors.
Since GBC was not informed at any time thereafter either by its
solicitors, NKH or their solicitors of any further disagreements
or unacceptance, GBC concluded that the matter had been settled.
As such, the publishing of the notice of winding-up petition in
the STAR of 20 September 2001 came as a surprise and neither GBC
nor the Company was aware of it.
However, on investigating the matter after the notice of
winding-up was published, it was learned that GBC solicitors
Malik & Partner had received on 19 April 2001 a letter from
NKH's solicitors stating that NKH will only consider the matter
settled if GBC also pays the interest calculated at 8% per annum
from 15 Dec 1999 and costs of RM1,154.00 in two cheques.
GBC's solicitors did not relay this information to GBC nor was a
copy of this letter sent to GBC. However, Malik & Partners had
further discussed the matter with NKH's solicitors so that NKH
would accept the payment of the principal sum of RM53,013.95 as
full and final settlement of the Debt, who had agreed to revert
in due course. Although NKH's solicitors did not revert, Malik &
Partners reasonably presumed that the 3 cheques previously sent
to them were acceptable as they were not returned.
As stated above, GBC has only received a Section 218 Notice to
date and issued payments to settle the Debt in April, May and
June.
GBC has not been served the winding-up petition and the GBC is
only been aware of the notice following its publication in the
STAR of 20 September 2001.
Particulars of Claim
An amount of RM53,013.95 for spare parts purchased in 1999
together with interest thereon at 8% per annum calculated from
15 Dec 1999 and costs of RM1,154.00.
Cost of Investment
The cost of investment of GBE in GBC is RM200,002.00 and has
been fully provided for in the accounts of GBE as at 31 March
2001. In addition, GBC owes GBE an amount of RM841,819 as at 31
March 2001; which has been fully provided for as at 31 March
2001.
Action to be taken
GBC has paid the principal amount due of RM53,013.95 and the
cheques dated 2 April, 2 May and 2 June 2001 which are still in
the possession of NKH or their solicitors are still valid and
can be presented at any time by NKH.
GBC is currently trying to resolve the payment of the interest
calculated at 8% from 15 Dec 1999 (estimated to be approximately
RM7,422.23 - 21 month period 15 Dec 1999 to 15 Sept 2001) and
costs of RM1,154.00 with NKH; failing which GBC will settle a
sum totaling approximately RM8,576.00 as demanded by NKH.
On full and final settlement of the Debt including interest and
costs NKH will be required to file a notice of discontinuance of
the winding-up petition. As further advised by GBC's solicitors
Malik & Partners vide their letter dated 20 September 2001, the
winding-up petition cannot be sustained by NKH as they cannot
prove that GBC is insolvent.
Date of Hearing of Winding-Up Petition
The date of hearing of Winding-Up Petition is on 8 November
2001.
Conclusion
As indicated by the course of events set out above, it is GCB's
opinion that the action taken by NKH is frivolous and malicious
in nature and can not be sustained. As GBC has paid the
principal sum of RM53,013.95 and will make the payments of the
interest and costs totaling approximately RM8,576.00 as
required, NKH cannot prove that GBC is insolvent to warrant an
action to wind it up.
Accordingly, GCB requests that the KLSE lift the suspension of
the GBE shares, effective immediately.
LIEN HOE: Posts The Loan Stocks Defaulted Payments
--------------------------------------------------
Lien Hoe Corporation Berhad informed loan stockholders of the
current status of the following defaults pertaining to 15%
redeemable secured loan stocks due 2000 (the Loan Stocks) of
Lien Hoe in accordance with KLSE Practice Note No. 1/2001:
a. Loan Stocks interest from 1 January 2000 to 30 June 2000;
b. Loan Stocks interest from 1 July 2000 to 17 August 2000;
and
c. Maturity and redemption of Loan Stocks due 17 August 2000
Reasons for default in payments
As stated in our circular to loan stockholders dated 17 July
2000, the Company was adversely affected by the Asian financial
crisis, which resulted in the slowdown of the Malaysian economy
in general and the property market in particular. This has
affected the Company's ability to pay the Loan Stocks' principal
and interest when they fell due.
Measures taken to address the default
The Company had on 30 May 2000 received Securities Commission's
approval for its restructuring exercise which includes inter-
alia, a capital reduction and rights issue of warrants. An
amount of RM36.7 million arising from this exercise has been
earmarked for partial redemption of the Loan Stocks whilst the
balance of RM7.1 million and Loan Stocks interest of
approximately RM4.1 million will be repaid via bridging loan
from financial institutions. This loan, if approved, will be
secured by a charge over the Company's property known as
Kompleks Lien Hoe in Johor Baru valued at RM126.976 million as
at 4 May 1998.
The restructuring exercise has also been approved by the
shareholders of the Company at an extraordinary general meeting
held on 23 November 2000. Subsequently on 10 January 2001, the
High Court of Malaya granted its sanction for the capital
reduction, which forms an integral part of the restructuring
exercise of the Company. The capital reduction was completed on
15 February 2001 and the other components of the restructuring
exercise will be implemented sequentially thereafter.
In view of the depressing local stock market condition, which
may adversely affect the progress of implementation of the
restructuring exercise, the Company is actively pursuing a bonds
issue by way of securitization of Kompleks Lien Hoe as an
alternative plan. The bonds issue, if successful, will raise
sufficient cash for the Company to redeem the Loan Stocks plus
any accrued interest in full.
Financial and legal implications in respect of the default in
payments of the outstanding sums:
Under the Company's proposed debt restructuring scheme as
facilitated by the Corporate Debt Restructuring Committee, Bank
Negara Malaysia, the major lenders to the Lien Hoe Group have
agreed to restructure the majority of the Group's debts. This
proposal has also the approval by the Securities Commission on
30 May 2000 and the shareholders approval on 23 November 2000.
Save as disclosed, there are no other significant financial and
legal implications in respect of the default.
Lines of action available to the security holders against the
Company:
The Loan Stocks is secured by a charge over the Company's
property known as Kompleks Lien Hoe in Johor Baru valued at
RM126.976 million as at 4 May 1998. Loan stockholders will
continue to have a claim against the Company in respect of their
respective holdings of the Loan Stock. The rights of the
registered loan stockholders will continue to be protected by
the terms of the Trust Deed, as amended by the Amendment Trust
Deed, and will continue to be represented by the Trustee,
Universal Trustee (Malaysia) Berhad.
MYCOM BERHAD: Sees No Reason For Unusual Market Activity
--------------------------------------------------------
The Board of directors of Mycom Berhad advised the following:
(i) There is no material development in the Company's business
and affairs not previously disclosed apart from the revised
Proposed Restructuring Scheme that the Company is undertaking;
(ii) They are not aware nor have been notified of any
impending change in the major shareholders; and
(iii) To their knowledge, there are no other reasons to
account for the unusual market action other than for the
indirect interest of activity shown through its associate
company, Olympia Industries Berhad(OIB) which has announced the
receipt of a letter on 19 September 2001 from the Ministry of
Finance, Malaysia approving the renewal of a Gaming Licence to
OIB's sub-subsidiary, Diriwan Corporation Sdn Bhd to carry out
gaming activities in the State of Sabah beginning 1 October 2001
under the provisions of the Pool Betting Act 1960.
However, OIB through Diriwan Corporation Sdn Bhd is awaiting the
approval from the Sabah State authorities for issuance of
Trading Licences which are necessary for commencement of any
gaming operations in the State.
PERBADANAN JOHOR: Fails To Redeem Rm400M Fixed-Rate Bonds
---------------------------------------------------------
Rating Agency Malaysia Berhad (RAM),on 8 June 2001, had
downgraded the long-term and short term ratings for all of
Perbadanan Johor's (JCORP) private debt instruments from BBB3 to
C3 and P3 to NP respectively. The downgrades were premised on
JCORP's failure to redeem its RM55 million Notes Issuance
Facility which had matured on 17 May 2001 coupled with the
possibility of cross-default declarations by the respective
trustees of the other remaining debt instruments.
In line with RAM's downgrades, Perbadanan Johor (JCORP) was not
able to fully redeem its RM400 million Fixed-Rate Bonds which
matured on 19 September 2001. JCORP, in consultation with the
Corporate Debt Restructuring Committee, is still in the midst of
finalizing its comprehensive corporate and debt restructuring
scheme. The scheme is currently targeted for presentation to the
Ministry of Finance by end-September 2001.
Nevertheless, RAM expects the entire process to be rather drawn
out and only likely to be completed beyond this date. Meanwhile,
RAM understands that Letters of Comfort have been extended by
the State Government of Johor to affected lenders/financiers.
PERNAS INTERNATIONAL:RAM Downgrades Debt Securities To BBB3(s)
--------------------------------------------------------------
Rating Agency Malaysia Berhad (RAM) has downgraded the enhanced
long-term ratings of the RM580 million private debt securities
issued by Pernas International Holdings Berhad (PIHB), from
A1(s) to BBB3(s). The downgrade reflects the delay in the
materialization of the Group's balance sheet restructuring
scheme, which was aimed at reducing its high debt level with
fresh funds from the capital markets and proceeds from asset
sales. In total, we had expected PIHB to reduce its total debt
by over RM800 million in FYE December 2000 (FY 2000).
As a result, the Group continues to be challenged with large
financial obligations. As at 31 March 2001, PIHB had total
borrowings of RM2.57 billion. PIHB's management is seriously
looking into various options to pare down its total borrowings.
However, plans are being finalized. Meanwhile, RAM is also
maintaining the Rating Watch with a developing outlook on PIHB,
until a firm restructuring scheme is in place.
In year 2000 and early 2001, PIHB's plantation division was
affected by a significant decline in average crude palm oil
(CPO) prices. As a result, its operational cash flow contracted
and was insufficient to comfortably support the Group's debt-
servicing obligations. However, with the current uptrend in the
CPO prices, the plantation division is expected to improve its
performance.
On the other hand, PIHB's hotel operations and property
investment divisions showed better results in FY 2000 compared
to the previous year. Most of PIHB's hotels improved in terms of
average occupancy and room rates, while its property
investments' occupancy rates also increased. The Group has 3
prominent office buildings located strategically in the heart of
Kuala Lumpur and possesses 10 hotels nationwide, mostly under
the "Mutiara" name. Elsewhere, the manufacturing division
generated stable profits.
Nevertheless, the improvements achieved by these 2 divisions and
the stable profits generated by the latter were insufficient to
offset the plantation division's scant profits. PIHB is an
asset-rich Group with unencumbered assets worth in excess of RM1
billion, which gives the Group financial flexibility when
considering its options in relation to debt reduction.
SISTEM TELEVISYEN: Court Order Lapsed Due To Aborted Scheme
-----------------------------------------------------------
Arab-Malaysian Merchant Bank Berhad, on behalf of Sistem
Televisyen Malaysia Berhad (TV3), announced that the Court Order
lapsed on 17 September 2001. The Order was granted by the High
Court of Malaya on 17 April 2001 and specified a scheme
creditors' meeting has to be convened in Kuala Lumpur no later
than 5 months from the date of the Court Order. The Proposed
Restructuring Scheme has been aborted.
In addition, TV3 related that a new application, pursuant to
Section 176(1) of the Companies Act, 1965 will be filed in the
High Court once the alternative restructuring scheme has been
finalized.
SPORTMA CORPORATION: Time Extension Application Granted
-------------------------------------------------------
The Special Administrators of Sportma Corporation Berhad
(Special Administrators Appointed) (Sportma) announced that
Sportma had on 19 September 2001, obtained an approval from the
KLSE for an extension of 2 months up to 30 November 2001, for
Sportma to obtain regulatory approvals for its plan to
regularize the financial position of Sportma, subject to Sportma
submitting the plan to the relevant authorities by 30 September
2001.
On 10 September 2001, Sportma's subsidiaries namely, Artforce
Sdn Bhd, Chemitech Industries Sdn Bhd and Senibina Ceria Sdn
Bhd, were wound up by way of creditors' voluntary liquidation.
Tan Kim Leong was the appointed Liquidator of the companies.
TAP RESOURCES:Proposes New Memorandum, Articles Of Association
--------------------------------------------------------------
The Board of Directors of TAP Resources Berhad (TAP or the
Company) announced that the Company proposes the adoption of a
new Memorandum and Articles of Association to comply with the
provisions of the new Listing Requirements of the KLSE, the Act
and other relevant regulatory and statutory requirements.
The Proposed Adoption is subject to the approval of the KLSE and
the shareholders of TAP at the forthcoming Extraordinary General
Meeting.
The Circular to shareholders containing the information on the
Proposed Adoption will be issued to the shareholders in due
course.
TCR-AP published on August 30, 2001 TAP's Revised Debt
Restructuring Proposal.
=====================
P H I L I P P I N E S
=====================
ASB GROUP: Debt Settlement Agreement With Allied Granted
--------------------------------------------------------
A Memorandum of Agreement (MoA) between the ASB Group of
Companies and Allied Banking Corp. for the settlement of the
creditor bank's P1.03 billion exposure, was approved by the
Securities and Exchange Commission recently, Business World
reported Friday.
In a recent order, SEC general counsel Eugenio E. Reyes and
hearing panel member Rosalinda Tividad-Tesorio approved the MoA
citing that the agreement is beneficial to both parties.
Under the MoA, ASB member companies, ASB Realty Corp. and ASB
Development Corp., agreed to release all their rights, titles
and interests in certain real properties mortgaged in favor of
Allied Bank.
The bank agreed that upon completion of the transfer of the
mortgaged assets, it would cancel and discharge the first lien
over real properties, including several units in the group's
condominium projects.
The MoA is the first step for the eventual settlement and
satisfaction of the loan obligations to Allied, in the amount of
P1.03 billion.
NATIONAL STEEL: Allengoal Wants Lease Enforced
----------------------------------------------
Allengoal Steel Fabrication and Trading Corporation, barred from
implementing a lease agreement with National Steel Corporation
more than a year ago, now wants to enforce the contract in
preparation for their takeover of the steel firm's mills.
In a letter to the Securities and Exchange Commission (SEC),
Allengoal president Alexander S. Delmo said "considering the
adverse-growing plant conditions and the worker's plight which
we have referenced in crafting and finally signing the contract,
we are constrained to strongly request the SEC to immediately
concur with the contract."
Business World reported Friday that Allengoal also handed the
commission an improved lease contract, which included, among
other things, an increase in the proposed lease payment, a
profit-sharing scheme with the NSC, and provisions for the
possible pre-termination of the contract by mutual agreement.
NATIONAL STEEL: Opening Planned Despite Hottick's Uncertainty
-------------------------------------------------------------
The Department Trade and Industry (DTI) is still bent on re-
opening the National Steel Corporation's (NSC) Iligan plant,
despite shareholder Hottick Investment Ltd., backpedaling from
the government-led evaluation committee, Business World reported
Friday.
The evaluation committee, which was formed under the initiative
of DTI more than two months ago, is merely a parallel procedure
to the liquidation process being conducted by the Securities and
Exchange Commission (SEC) and therefore should not supercede the
latter, all this according to DTI chair, Manuel Roxas III.
He even stressed the evaluation committee is only a voluntary
process, tasked to receive and evaluate proposals from
prospective NSC investors, but decision will ultimately be
SEC's.
The evaluation committee, which is composed of representatives
from DTI, National Development Co., and NSC creditor-banks and
its Malaysian shareholders, was earlier considered a
breakthrough in resolving the impasse between NSC owners.
NSC creditor banks and Hottick, the Hong Kong-based investment
arm owned by Renong Berhad of Malaysia, used to be on a deadlock
on the issue of NSC's temporary reopening until DTI mediated.
URBAN BANK: Exportbank Pays Urban Clients
-----------------------------------------
The Export and Industry Bank (Exportbank) started the payout of
deposits and claims locked in closed Urban Bank for over a year
last Friday.
In a press statement, Exportbank president Benjamin P. Castillo
said that the payout went largely due to the cooperation between
the bank and the National Association of Urban Depositors and
Creditors, and the Philippine Deposit Insurance Corp. (PDIC).
The bank extended payouts of up to P500,000.
The payout is part of the rehabilitation plan approved by the
PDIC June last year. Under the scheme, the balance of depositors
and claims will be repaid over the next three years.
The merger between Urban Bank and Exportbank was also provided
under the rehabilitation plan.
VICTORIAS MILLING: Posts Urgent Manifestation and Motion
--------------------------------------------------------
Victorias Milling Company, Inc. (VMC) furnished the SEC with a
copy of the "Urgent Manifestation and Motion" dated 31 August
2001 in its Petition for the Declaration of a State of
Suspension of Payments, for the Approval of a Rehabilitation
Plan, and the Appointment of a Management Committee. The case is
docketed as SEC Case No. 07-97-5693, which reads:
"THE MANAGEMENT COMMITTEE OF THE VICTORIAS MILLING COMPANY, INC.
(VMC MANCOM) in the above-entitled case, by its undersigned
counsel, and to this Honorable Commission respectfully manifests
that Mr. Nilo Flor Cruz has been appointed as Acting Corporate
Secretary of Victorias Milling Company, Inc. (hereinafter
referred to as 'VMC') while Atty. Grace Cassandra A.L. Alfafara
has been appointed as Assistant to the Secretary of VMC MANCOM.
In addition, Messrs. Nilo Flor Cruz and Abelardo Bugay were
authorized by the VMC MANCOM to sign the Stock Certificates of
VMC.
PRAYER WHEREFORE, it is respectfully prayed that this Honorable
Commission take note of the foregoing manifestation and direct
that it be made part of the records of the instant case. xxx"
=================
S I N G A P O R E
=================
AMTEK ENG'G: Director Foo Shu Huan Lawrence Changes Interest
------------------------------------------------------------
Amtek Engineering Ltd posted a notice of changes in director Foo
Shu Huan Lawrence's stake:
Name of substantial shareholder: Foo Shu Huan Lawrence
Date of notice to company: 29 Sep 2001
Date of change of interest: 19 Sep 2001
Name of registered holder: Foo Shu Huan Lawrence
Circumstance giving rise to the change: Open market purchase
Shares held in the name of registered holder
No. of shares of the change: 58,000
% of issued share capital: 0.032
Amount of consideration per share excluding brokerage,
GST, stamp duties, clearing fee: S$0.41
No. of shares held before change: 842,000
% of issued share capital: 0.463
No. of shares held after change: 900,000
% of issued share capital: 0.495
Holdings of Substantial Shareholder including
direct and deemed interest
Deemed Direct
No. of shares held before change: 842,000
% of issued share capital: 0.463
No. of shares held after change: 900,000
% of issued share capital: 0.495
Total shares: 900,000
No. of Warrants: 170,000
No. of Options: 110,000
AMTEK ENGINEERING: Director Lai Fook Kuen Changes Stake
-------------------------------------------------------
Amtek Engineering Ltd posted a notice of changes in director Lai
Fook Kuen's interest:
Name of director: Lai Fook Kuen
Date of notice to company: 29 Sep 2001
Date of change of interest: 18 Sep 2001
Name of registered holder: Lai Fook Kuen
Circumstance giving rise to the change: Open market purchase
Shares held in the name of registered holder
No. of shares of the change: 3,000
% of issued share capital: 0.001
Amount of consideration per share excluding brokerage,
GST, stamp duties, clearing fee: 0.40
No. of shares held before change: 7,750,250
% of issued share capital: 4.259
No. of shares held after change: 7,753,250
% of issued share capital: 4.261
Holdings of Substantial Shareholder including
direct and deemed interest
Deemed Direct
No. of shares held before change: 7,750,250
% of issued share capital: 4.259
No. of shares held after change: 7,753,250
% of issued share capital: 4.261
Total shares: 7,753,250
No. of Warrants : 1,240,040
No. of Options : 147,500
CAPITALAND LIMITED:Confirms Issues Re Business Times' Articles
--------------------------------------------------------------
In a recent interview that CapitaLand's CEO, Liew Mun Leong, had
with the Business Times, the CEO addressed several broad issues
including the Group's longer-term strategies, redevelopment
plans and succession plans, which resulted in a series of
articles appearing in the 20 September 2001
edition of The Business Times. The company confirmed the
following points appearing in the articles:
(1) In 2001, CapitaLand plans to divest another $1 billion to $2
billion worth of properties, mostly to funds, as part of a
longer-term strategy to grow fee-based income into a significant
source of revenue for the group.
(2) The acid test for the longer term is that income from
predominantly fee-based businesses have to be more than 50% of
the profit.
(3) Liew has no plans to leave CapitaLand.
(4) He believes that a merger with Keppel Land would be out of
sync with the group's current strategy of "de-gearing and
becoming asset light".
FHTK HOLDINGS: High Court Confirms Capital Reduction
----------------------------------------------------
Pursuant to FHTK Holdings Ltd's capital reduction exercise to
reduce the par value of ordinary shares in the company's capital
from S$0.20 to S$0.05 each, the company announces that following
the High Court's confirmation of the Capital Reduction on 19
September 2001, a copy of the Order of Court was lodged with the
Registrar of Companies on 20 September 2001.
The Capital Reduction is now completed and effective.
Listing and quotation of the Company's ordinary shares with the
new par value of S$0.05 each on the Main Board of the Singapore
Exchange Securities Trading Limited in place of the same number
of the original Shares with a par value of S$0.20 each, will
commence 9:00 am on 21 September 2001.
HONG LEONG: Posts Changes In Shareholder's Stake
------------------------------------------------
Hong Leong Singapore Finance Limited posted a notice of changes
in substantial shareholder, Kwek Holdings Pte Ltd's Deemed
Interests:
Notice Of Changes In Substantial Shareholder's Deemed Interests
Name of substantial shareholder: Kwek Holdings Pte Ltd ("KH")
Date of notice to company: 19 Sep 2001
Date of change of interest: 18 Sep 2001
Name of registered holder: Citibank Nominees (Singapore) Pte Ltd
("Citibank Nominees") for account of Welkin Investments Pte Ltd
("Welkin").
Circumstance giving rise to the change: Others
Please specify details: Open Market Purchase
KH has deemed interest in these shares held in the name of the
registered holder, Citibank Nominees for account of Welkin, a
wholly-owned subsidiary of Hong Leong Investment Holdings Pte.
Ltd.
Shares held in the name of registered holder
No. of shares of the change: 89,000
Percent of issued share capital: 0.021
Amount of consideration per share
excluding brokerage, GST, stamp duties,
clearing fee: S$1.3221
No. of shares held before change: 475,000
Percent of issued share capital: 0.11
No. of shares held after change: 564,000
Percent of issued share capital: 0.131
Holdings of Substantial Shareholder including direct and deemed
interest
Deemed Direct
No. of shares held before change: 204,849,758 0
Percent of issued share capital: 47.602 0
No. of shares held after change: 204,938,758 0
Percent of issued share capital: 47.622 0
Total shares: 204,938,758 0
Note:
% of issued share capital is based on the Company's issued share
capital of 430,340,464 shares of $1.00 each as at 18 September
2001.
L&M GROUP: Director Edward Seky Soeryadjaya Changes Interest
------------------------------------------------------------
L&M Group Investments Ltd posted a notice of change in
director/substantial shareholder Edward Seky Soeryadjaya's
stake:
Name of director/substantial shareholder: Edward Seky
Soeryadjaya
Date of notice to company : 19 Sep 2001
Date of change of interest : 18 Sep 2001
Name of registered holder : The Central Depository (Pte) Ltd
Circumstance giving rise to the change: Sales in open market at
own discretion
Shares held in the name of registered holder
No. of shares of the change : 230,000
% of issued share capital : 0.103
Amount of consideration per share excluding brokerage, GST,
stamp duties, clearing fee : 0.11183
No. of shares held before change: 2,035,333
% of issued share capital : 0.916
No. of shares held after change: 1,805,333
% of issued share capital : 0.813
Holdings of Director/Substantial Shareholder
including direct and deemed interest
Deemed Direct
No. of shares held before change: 18,230,000 2,035,333
% of issued share capital: 8205 0.916
No. of shares held after change: 18,230,000 1,805,333
% of issued share capital: 8.205 0.813
Total shares: 18,230,000 1,805,333
===============
T H A I L A N D
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EMC PUBLIC: Posts Change In Paid Up Capital
---------------------------------------------
EMC Power Co., Ltd, the plan administrator of EMC Public Company
Limited (the Company), informed that the Company has registered
the paid up capital from Bt75,000,000 to Bt441,806,540 on
September 20, 2001.
EMC PUBLIC: Posts Shares Sale Report
------------------------------------
EMC Public Company Limited posted its shares sale report:
EMC Public Company Limited
September 20, 2001
1. Information relating to the share offering
Category of shares offered : Ordinary Shares
Price per share : Bt10
Subscription and payment period : September 20, 2001
2. Result of the sale of shares
[ ] totally sold out
[ X ] partly sold out, with 23,614,777 shares remaining.
The company will deal with the remaining shares as follows:
The plan administrator is unable to convert some debt to common
shares because the official receiver doesn't issue the orders of
the claim for payment yet. The plan administrator has to
receive all the orders then will convert the debt to
3. Details of the sale
Thai investors Total
Juristic Natural
Persons Persons
Number of persons 42 5 47
Number of shares 36,584,931 95,723 36,680,654
Subscribed
Percentage of total
Shares offered for sale 60.67 0.16 60.83
4. Amount of money received from the sale of shares
Net amount received: Bt366,806,540
THONBURI AUTOMOTIVE: Petition For Business Reorg Filed
------------------------------------------------------
Thonburi Automotive Assembly Plant Company Limited's (DEBTOR),
Petition for Business Reorganization was filed to the Central
Bankruptcy Court:
Black Case Number 314/2543
Red Case Number 29/2543
Petitioner: Bangkok Bank Public Company Limited
: Thai Farmers Bank Public Company Limited
: Standard Chartered Nakornthon Bank
: THONBURI AUTOMOTIVE ASSEMBLY PLANT COMPANY LIMITED
Planner: PriceWaterHouseCoopers Corporate Restructuring Company
Limited
Debts Owed to the Petitioning Creditor: Bt27,432,787,792.07
Date of Court Acceptance of the Petition: April 27, 2000
Court Order for Business Reorganization and Appointment of
Planner: May 22, 2000
Announcement of Court Order for Business Reorganization and
Appointment of the Planner: in Matichon Public Company Limited
and Siam Rath Company Limited in 2000
Announcement of Court Order for Business Reorganization and
Appointment of the Planner: in Government Gazette on July 11,
2000
Deadline for the Planner to submit the Business Reorganization
Plan to the Official Receiver: October 11, 2000
Court allowed the Planner to postpone the submitted date of
Business Reorganization Plan: November 11, 2000
Appointment Date of the Creditors' Meeting for the Plan
Consideration: January 16, 2001 at 9.30 am. Sirigit Convention
Center, New Ratchadapisek Rd.
The Meeting had passed a special resolution accepting the
Reorganization Plan
Court had issued the order accepting the reorganization plan:
March 7, 2001 and Appointed PriceWaterHouseCoopers Corporate
Restructuring Company Limited to be as the Plan Administrator at
the first stage and Thonburi Automotive Assembly Plant Company
Limited to be as the Plan Administrator at the second stage
Announcement of Court Order for accepting the Business
Reorganization Plan and Appointment of the Plan Administrator :
in Matichon Public Company Limited and Siam Rath Company Limited
in March 16, 2001
Announcement of Court Order for accepting the Business
Reorganization Plan and Appointment of the Plan Administrator:
in Government Gazette in April 10, 2001
Contact: Ms. Poonsiri Tel 6792511
TPI POLENE: Potential Buyers To Present Offers On September 25
--------------------------------------------------------------
Thai cement producer TPI Polene PCL's two potential foreign
investors will present their proposals to buy a major stake in
the company at the company's creditors' meeting scheduled for
Sept. 25, Asian Wall Street Journal reported Wednesday citing an
anonymous source from the company's creditors steering
committee.
"All TPI Polene's creditors will meet next week to make a
decision on whether to extend the deadline for the company's
US$180 million capital increase, which is a key step in its
Bt49.9 billion (US$1THB44.205) debt-restructuring plan," the
source said.
Under the plan, TPI Polene is required to issue new shares worth
up to US$180 million to a strategic investor.
TPI Polene has asked its creditors for another extension to Dec.
28 to raise the necessary capital under its debt-restructuring
plan.
"The creditors are expected to make the decision within two
weeks after the Sept. 25 meeting," the source added.
TPI Polene is a subsidiary of Thai Petrochemical Industry PCL,
the country's largest debt defaulter, with debts worth $3.7
billion.
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,
Maria Vyrna Nineza, Jerros Dolino, Editors.
Copyright 2000. All rights reserved. ISSN: 1520-9482.
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