/raid1/www/Hosts/bankrupt/TCRAP_Public/011030.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
Tuesday, October 30 2001, Vol. 4, No. 212
Headlines
A U S T R A L I A
AUSTRALIAN MAGNESIUM: 19th AGM Scheduled November 27
BEACONSFIELD GOLD: Current Board Responds To Meeting Notice
COLES MYER: S&P Downgrades Long Term Rating to `BBB+'
ENERGY EQUITY: Raises Share Offer to $11.331M
MTM ENTERTAINMENT:Force Entertainment Center Litigation Settled
OMNI GROUP: Creditors' Trust Deed Executed
PACIFIC DUNLOP: Appoints Three New Directors
TELEZON LIMITED: Posts Administrator's Advice
C H I N A & H O N G K O N G
GOLDEN HORSE: Winding Up Petition Slated For Hearing
MANDARIN RESOURCES: Appoints Hodgson Impey Cheng As Auditor
MANDARIN RESOURCES: Posts Results Announcement Summary
NORTHERN INTL: Price & Turnover Movements Unexplainable
PRICERITE GROUP: Sees No Reason For Share Price Increase
VERON DEVELOPMENT: Faces Winding Up Petition
WEALTHY FULL:: Winding Up Sought By Jusco Stores
I N D O N E S I A
ASIA PULP: Indonesian Units' Profit Transferred To China
SEMEN GRESIK: Cemex Accepts Setback In Sale
TIMAH TBK: House Ready To Help Resolve Illegal Mining Problem
J A P A N
CHUO MITSUI: Seeks Funding As Part Of Restructuring Efforts
DAIWA GROUP: Moody's Reviews Ratings For Possible Downgrade
DAIWA SECURITIES: Posts Y131B Group Net Loss
NEC CORPORATION: Declares H1 Losses
SONY CORPORATION: Units' Future Grim As US$107M Loss Posted
TOSHIBA CORPORATION: H1 Losses Drive New Cost-Cutting Measures
K O R E A
HYNIX SEMICONDUCTOR: Issued GDRs Dumped Back To SK Exchange
HUNIX SEMICONDUCTOR: Creditor Banks May Not Join Bailout
HYUNDAI GROUP: Tour Unit Cuts Staff Further
HYUNDAI HEAVY: Sells Stakes To Hasten Spin Off
M A L A Y S I A
ANSON PERDANA: Restraining Order Hearing Rescheduled
ARTWRIGHT HOLDINGS: Amends Memorandum of Association
CSM CORP.: Awaits KLSE's Extension Request Approval
JASATERA BERHAD: Applies Further Extension To Complete RA
NCK CORP.: Finalizing Financial Regularization Discussions
RENONG BERHAD: Unit Enters Conditional SPA With Bukit Indah
TAT SANG: Elaborates On Appointment Of Receiver, Manager
TRANS CAPITAL: Awaits Reply On Extension Appeal
WING TIEK: Finalizing Restructuring Proposal With White Knight
ZAITUN BERHAD: In Talks With Creditors On Proposed Scheme
P H I L I P P I N E S
NATIONAL BANK: P24B Worth Assets Hitting Auctioned Block
NATIONAL POWER: Enters Trading Deal With China, PASAR
NATIONAL POWER: Auction Nearly Over
T H A I L A N D
SIAM STRIP: Postpones Vote on Debt Plan
SRIVARA REAL: Posts Business Reorganization Plan Report
THAI ELECTRONIC: Files Business Reorganization Petition
- - - - - - - -
=================
A U S T R A L I A
=================
AUSTRALIAN MAGNESIUM: 19th AGM Scheduled November 27
---------------------------------------------------
Australian Magnesium Corporation Limited posted its 19th AGM
notice:
Notice is hereby given the Nineteenth Annual General Meeting of
Australian Magnesium Corporation Limited will be held at Lawson
Room 2, Novotel Hotel, 200 Creek Street, Brisbane on Tuesday, 27
November 2001 at 9:00 am.
This business to be dealt with at the Meeting is:
ORDINARY BUSINESS
1 To receive and consider the Directors' Report and Financial
Statements for the year ended 30 June 2001 and Auditors' Report
thereon.
2. To elect Directors:
a) Mr David Hillier retires by rotation in accordance with the
Company's Constitution, and being eligible offers himself for
re-election.
SPECIAL BUSINESS
3. To consider and if thought fit, to pass the following
resolution as an ordinary resolution:
"The terms and conditions of the distribution reinvestment plan
to be implemented by the Company, which terms and conditions are
summarized in the explanatory memorandum accompanying the notice
of meeting, are approved."
OTHER BUSINESS
4. To transact any other business which may be legally brought
before the meeting.
BEACONSFIELD GOLD: Current Board Responds To Meeting Notice
-----------------------------------------------------------
Beaconsfield Gold NL (Receiver And Manager Appointed) was
notified late afternoon 24 October 2001 that a letter from
Robert Catto and notice of meeting had been mailed that day to
all shareholders of the Company. A group led by Catto is calling
for the removal of all the current members of the Board (John
Jost, John Miedecke, Mike Trumbull and Bill Tsingos) and their
replacement by Christopher Ryan, Philip Bruce and Gordon
Elkington.
RESPONSE FROM THE CURRENT BOARD
The timing of the move by Catto to remove the current Board is
disappointing because it threatens the most promising efforts of
the Beaconsfield Gold directors.
The current Board has been actively working on proposals to
recapitulate Beaconsfield Gold for the past three months.
After consulting with numerous parties, the Board is poised to
negotiate agreements with a Third Party investor and the
company's banker, BankWest. These agreements would lead to the
retirement of the Receiver and Manager to the Company and the
recommencement of trading in the Company's shares.
On 11 October 2001, the Board, together with the Receiver and
Manager, met with the Catto group in Melbourne.
The Board informed the Catto group that confidential discussions
were taking place between the directors and several interested
parties with a view to recapitulating Beaconsfield Gold.
For that reason it is a matter of concern as the Catto group's
action could destabilize the company at this critical time.
The current directors are reliably informed that the potential
Third Party investor would immediately terminate any involvement
in recapitulating the company if the Catto group's attempt to
seize control of the Board were to succeed.
The Board will respond in more detail in the coming weeks to
this opportunistic attempt to take control of Beaconsfield Gold.
In the meantime however, the Board recommends that all
shareholders.
Do not respond in any way to Catto's letter. In particular,
shareholders should not fill out and return the Proxy form until
the current Board has had the opportunity to present a full
response to shareholders.
When shareholders do fill out a Proxy form for the meeting,
preferably after they have had the opportunity to hear a full
response from the current Board, the Company requests that
shareholders return the completed Proxy form as follows:
By Mail: Beaconsfield Gold NL
Level 6, 1 Collins Street
Melbourne Vic 3000
By Fax: 03-9650-7225
The directors clearly recommend that shareholders, when they do
complete the Proxy form, vote against all the resolutions by
placing a tick in the "Against" box for resolutions 1, 2, 3, 4,
5, 6 and 7.
If any shareholders have already submitted a Proxy form, and
wish to subsequently change their voting intentions, they can
submit another Proxy form provided it is dated at a later date
than the earlier Proxy form. Any shareholder wishing to do so
can obtain a replacement Proxy form by contacting the Company
Secretary as follows:
Colin Walker
Company Secretary
Beaconsfield Gold NL
Level 6, 1 Collins Street
Melbourne Vic 3000
Phone: 03-9650-7735
Fax: 03-9650-7225
The following facts are set out as an initial response only.
They are done to provide some initial background to
shareholders.
SHAREHOLDING OF CURRENT BOARD
The current members of the Board all hold a significant number
of shares in Beaconsfield Gold as follows:
BENEFICIAL INTEREST IN FULLY PAID SHARES
John Jost 2,885,771
John Miedecke 935,949
Mike Trumbull 3,268,520
Bill Tsingos 950,000
In comparison, two of the directors proposed by Robert Catto,
Christopher Ryan and Philip Bruce, hold no shares in
Beaconsfield Gold and Gordon Elkington holds 98,400 shares.
The current Board is vitally interested in maximizing the value
of all current shareholders interests. Biographical details for
all the current board members was set out in the quarterly
report for Beaconsfield Gold to 30 June 2001 (released on 23
August 2001).
ROBERT CATTO
Attachment 1 is an extract from CATTO & ORS v HAMPTON AUSTRALIA
LTD (In Liquidation) & ANOR [1998] SASC 6931.
In it, Catto is described as a "professional minority
shareholder". In the fax referred to in the extract, Catto says
"the investment philosophy of my Batoka group (is) to actively
participate in minority situations as they evolve - both by
buying into them as soon as the characteristics of a profitable
squeeze are perceived AND by then proceeding with litigation and
other administrative maneuvers (if they are justified) in order
to derive maximum commercial advantage out of the situation."
The current Board has great concern when reconciling Catto's
stated investment philosophy, as described above, with his
desire to remove all of the current directors of Beaconsfield
Gold.
FURTHER INFORMATION
As stated earlier, the current Board will respond more fully to
shareholders in the coming weeks. The Company will also release
the quarterly report for Beaconsfield Gold to 30 September 2001.
In the interim, please direct all inquiries for further
information to the Chairman, John Jost on 03-9576-2166 or 0413-
304-061.
Shareholders are reminded that releases and reports by the
Company can be seen on the Beaconsfield Gold website on the
internet:
www.beaconsfieldgold.com.au
Shareholders can also email the Company on:
beaconsfieldgold@bigpond.com
COLES MYER: S&P Downgrades Long Term Rating to `BBB+'
-----------------------------------------------------
Standard & Poor's lowered Monday Coles Myer Ltd.'s (CML) long-
term rating and the ratings on its guaranteed senior debt issues
and programs to `BBB+' from `A-', and lowered the rating on the
company's reset convertible preference shares to `BBB-' from
`BBB'. At the same time, CML's `A-2' short-term rating was
affirmed, and all long-term ratings were removed from
CreditWatch where they were placed on Sept. 26, 2001. The
outlook is stable.
The rating downgrades reflect:
* The poor performance of CML's nonfood operations, and the
significant operational and cultural challenges involved in
repositioning and improving these businesses;
* The company's heightened vulnerability to its high operating
lease-adjusted leverage, as a result of the simultaneous
underperformance of its discount and traditional department
stores. Accordingly, CML's leverage policies are considered more
consistent with the 'BBB+' rating, despite the continuing solid
performance of its food and liquor business; and
* The weak economic outlook, which is expected to temper any
earnings recovery and ensure that cash flow protection measures
remain weak for the 'BBB+' rating in the near term.
Significantly, any company in the midst of a business
repositioning is more exposed to a weakness in its trading
environment, and to growing competitive threats.
CML's solid investment-grade ratings are underpinned by its very
large and diverse retail operations, strong store franchises,
and its satisfactory operating cash flow. The majority of fiscal
2001 earnings were generated from the company's well-performing,
recession-resistant food and liquor operations, which remains
the key driver of the company's very strong business profile.
CML's strong business position, however, is offset by its
moderately aggressive financial profile, which reflects the
company's extensive use of operating leases to finance its store
network. "Coles Myer has always been more highly leveraged than
its international peers, supported by its unique and significant
market positions across a diverse spectrum of Australian
retailing segments," said Paul Draffin, associate, Corporate &
Infrastructure Finance ratings.
"However, the recent underperformance of its three major nonfood
businesses highlights the vulnerability of these businesses to
ineffective retailing strategies, its increasingly competitive
markets, and its high leverage."
The underperformance of CML's nonfood businesses and an increase
in operating lease commitments caused CML's lease-adjusted funds
from operations (FFO)-to-debt ratio (before significant items
and accounting adjustments) to fall below 15 percent in 2001
(18.5 percent in 2000), and its fixed charge cover to fall below
2 times (x) (2.2x in 2000).
Standard & Poor's expects that the continued strong performance
of CML's food and liquor business, together with a modest
recovery in its nonfood earnings, will underpin a stronger
operating performance and cash flow protection ratios in the
near term. As CML's nonfood businesses improve in line with its
new strategies and store repositioning, the company's FFO-to-
debt should increase to about 20 percent in the next two to
three years.
ENERGY EQUITY: Raises Share Offer to $11.331M
---------------------------------------------
The Directors of Energy Equity Corporation Ltd (EEC) announced a
non-renounceable Share Offer of 1 new share for every 4
shares held as of 2 November 2001 at an issue price of 6.65
cents per shares to raise $11.331 million. The Share Offer
closes on 7 December 2001. The Company's major shareholder,
Energy World International Ltd (EWI) have underwritten the Share
Offer to $10 million and have advised EEC that they intend to
take up their full entitlement.
EEC Chairperson, Ron Punch, said that the proceeds from the
rights issue will be used for working capital, further debt
reduction and repayment of any loans drawn down from a
Convertible Loan Agreement provided by EWI of up to $10 million,
of which $2,080,000 has been drawn down as at Friday's date.
Mr Punch said that the rights issue enables all shareholders to
participate in the company's financial restructure. Following
the completion of the Share Offer and the anticipated
refinancing of the Company's power plant at Barcaldine in
Central Queensland, EEC's corporate debt with the Commonwealth
Bank of Australia would be $56.750 million as at 31 December
2001, down from $115 million as at 31 December 2000.
The 2001 Annual General Meeting will be held at 2.30pm on Friday
30 November 2001. The Company's Annual Report and Notice of
Meeting will be mailed to Shareholders Oil 29 October 2001.
For further enquiries, please contact EECs Company Secretary,
Ian Jordan on 61 8 9366-4777.
MTM ENTERTAINMENT:Force Entertainment Center Litigation Settled
---------------------------------------------------------------
The MTM Entertainment Trust (MME) and Force Corporation Limited
(Force) of New Zealand have settled the Force Entertainment
Center (Center) litigation.
Force will pay MME NZ$53 million on 31 January 2002. The NZ$53
million remains secured against the Center until paid. As MME
understands, Force will be raising the necessary funds by way of
a rights issue fully underwritten by its majority shareholder,
Sky City.
OMNI GROUP: Creditors' Trust Deed Executed
------------------------------------------
Omni Group Limited posted Trustee N Brooke of
PricewaterhouseCoopers's letter:
LETTER FROM PRICEWATERHOUSECOOPERS
"I wish to advise the following sequence of events in relation
to Omni Group Limited:
* On 24 August 2001 Omni's creditors agreed to vary the Deed
of Company Arrangement (DCA) so that the DCA would be terminated
and all creditors claims' against Omni would be released and
extinguished upon the payment by Asia Pacific Equity Funding Pty
Limited (APEF) of $400,000 into the Omni Group Creditors Trust
(the Trust) and APEF arranging for the issue or transfer of one
million shares in Omni to the Trust
* The amended DCA was executed on 25 October 2001
* APEF paid $400,000 into the Trust and issued one million
Omni shares to the Trust on 25 October 2001
* The Omni Group Limited Creditors Trust Deed was executed at
11.00am on 26 October 2001
* In accordance with clause 23 of the Amended DCA, the DCA
has been wholly effectuated and as a consequence Omni is no
longer in Administration
* It is now the intention for Omni to change its name to ECSI
Limited and to apply for re-quotation of Omni shares on the ASX
"I would be grateful if you would arrange for this information
to be released to the market.
"Should you have any queries, please do not hesitate to contact
me on (03) 8603 6214."
PACIFIC DUNLOP: Appoints Three New Directors
--------------------------------------------
Pacific Dunlop announced the appointment of three new directors
to its existing Board.
As foreshadowed in the Chairman's address at the 2001 Annual
General Meeting held on 12 October 2001, Dr Edward D Tweddell
has been appointed Deputy Chairman of the Company and will
succeed Mr John Ralph as Chairman upon Mr Ralph's retirement
from the Board before the end of this calendar year.
Dr Tweddell was until recently Group Managing Director and Chief
Executive Officer of FH Faulding and Company Limited. He is also
a director of National Australia Bank Ltd and Australia Post and
brings to the Company significant experience and intimate
knowledge of the health industry internationally.
Also appointed to the Board were Mr Stanley P Gold and Mr Peter
L Barnes.
Mr Gold, aged 59, is currently President and Chief Executive
Officer of Shamrock Holdings Inc, a diversified investment
company wholly owned by the Roy Disney Family, based in Burbank
California, USA. Prior to joining the Shamrock Group, Mr Gold
was a partner in a Los Angeles based law firm. Mr Michael J
McConnell, aged 35, who is resident in Sydney and his
representative in Australia, has been appointed an alternate
director by Mr Gold.
Mr Barnes, aged 58, had a long career with one of the world's
leading consumer marketing organizations, the Philip Morris
Group. His experience with Philip Morris was gained across a
number of its wine and tobacco businesses in the USA, the UK and
Asia. Prior to his retirement from Philip Morris, Mr Barnes was
President of Philip Morris Asia. He is the Chairman of the Co-
Operative Research Center for Viticulture and a director of
Metcash Trading Limited and Samuel Smith & Son Pty Limited.
PACIFIC BRANDS
Pacific Dunlop also advised that it is progressing its
negotiations for the sale of its Pacific Brands business on an
exclusive basis with an investor consortium led by CVC Asia
Pacific Limited. The transaction is expected to be concluded by
the end of November.
TELEZON LIMITED: Posts Administrator's Advice
---------------------------------------------
Telezon Limited (Administrators Appointed) posted Joint and
Several Administrator L A Fitzgerald letter of advice:
"I refer to my appointment as Joint and Several Administrator of
Telezon on 28 September 2001 pursuant to Section 436A of the
Corporations Act 2001.
"I advise that I do not intend to proceed with the Annual
General Meeting for Telezon as advertised by the company prior
to my appointment.
"I confirm that the second meeting of creditors of Telezon was
held on 25 October 2001. At that meeting it was resolved by
creditors that the meeting be adjourned for a period of up to
sixty days to allow time to further investigate the affairs of
the company and analyze the proposals for the future of the
company.
================================
C H I N A & H O N G K O N G
================================
GOLDEN HORSE: Winding Up Petition Slated For Hearing
----------------------------------------------------
The petition to wind up Golden Horse Furniture Factory Limited
is scheduled for hearing before the High Court of Hong Kong on
November 7, 2001 at 9:30 am.
The petition was filed with the court on July 31, 2001 by Sin
Hua Bank Limited, Hong Kong Branch (whose undertakings have been
succeeded by Bank of China (Hong Kong) Limited whose registered
office is situated at Bank of China Tower, 1 Garden Road,
Central, Hong Kong.
MANDARIN RESOURCES: Appoints Hodgson Impey Cheng As Auditor
-----------------------------------------------------------
The board of directors of Mandarin Resources Corporation Limited
(the Company) announced the resignation as auditors of the
Company and its subsidiaries, Discovery Net Limited, Jumbo
Profit Investments Limited, Sources Investments Limited, World
Target International Limited, Gold Winner Asia Limited, Prime
Profit Investments Limited, Profit Sky Investments Limited and
Top Yield Investments Limited, of Messrs Deloitte Touche
Tohmatsu Certified Public Accountants (Deloitte) in accordance
with Section 140A of the Companies' Ordinance (Cap. 32 of the
Laws of Hong Kong) with effect from 24 October 2001.
In a letter of resignation dated 24 October 2001, Deloitte has
included a statement, which in the view of Deloitte, should be
brought to the attention of the members or creditors of the
Company. The said statement of Deloitte is reproduced in full as
follows:
"The interim financial report of the Company and its
subsidiaries published by the previous directors on 28th March
2001 relating to the six month period ended 31st December 2000
included investments in securities stated at an amount of
HK$71,815,904.
It has been brought to our attention by the current directors of
the Company that investments in securities stated at
HK$62,314,703 as at 31st December 2000 were disposed of in
February 2001 in consideration of the transfer of certain
receivables amounting to HK$62,940,000.
The current directors have claimed that the disclosures made in
the interim financial report were inadequate due to failure to
specifically identify this transaction. No reasons have been
furnished to us to enable us to understand the basis upon which
the current directors have apparently come to this conclusion.
In the absence of such reasons we have no basis upon which to
conclude whether or not there was any inadequacy of disclosure
in this respect.
If there was inadequacy of disclosure, its correction is a
matter for the directors."
The Board has noted Deloitte's statement.
Deloitte has indicated that, apart from the matter referred to
in the statement above, there are no other professional reasons,
which should be brought to the attention of the new auditors
that would affect their acceptance of appointment as the
auditors of the Company. However, the formal professional
clearance letter has not yet been issued by Deloitte to the new
auditors as at the date of this announcement.
The Board also announced the appointment of Messrs HLB Hodgson
Impey Cheng Certified Public Accountants as the Company's
auditors with effect from 24 October 2001.
MANDARIN RESOURCES: Posts Results Announcement Summary
------------------------------------------------------
Mandarin Resources Corporation Limited announced on 26 October
2001:
Year end date: 30/6/2001
Currency: HK$ (Audited)
(Audited) Last
Current Corresponding
Period Period
from 1/7/2000 from 1/7/1999
to 30/6/2001 to 30/6/2000
Turnover : 198,024,390 152,660,878
Profit/(Loss) from Operations : (40,733,737) 8,501,296
Finance cost : (14,674) (26,491)
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 : (46,989,301) 3,950,919
% Change over Last Period : N/A
EPS/(LPS)-Basic : (5.3 cents) 0.4 cent
-Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (46,989,301) 3,950,919
Final Dividend per Share : Nil Nil
(Specify if with other options) : - -
B/C Dates for Final 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) (Loss)/Profit from operations
(a) Turnover:
Continuing operations
- Trading of listed securities 76,825,615 18,172,116
- Manufacturing and trading of
electrical equipment 93,861,346 90,132,245
- Provision of electrical engineering
and contracting services 27,332,074 43,956,342
Discontinued operations
- Manufacturing and trading of building
materials 5,355 400,175
---------- ----------
198,024,390 152,660,878
=========== ===========
(b) (Loss)/Earnings per share
The calculation of the basic (loss)/earnings per share is based
on the net loss for the year of HK$46,989,301 (2000: net profit
of HK$3,950,919) and the weighted average of 887,349,507 (2000:
884,200,000) shares in issue during the year. The weighted
average number of shares outstanding for 2000 has been
retrospectively adjusted for the effect of shares subdivision
during the year.
The calculation of diluted loss per share for the year is based
on the net loss attributable to shareholders for the year of
HK$46,989,301 and the weighted average of 888,549,507 ordinary
shares in issue during the year.
There were no dilutive potential ordinary shares in issue during
the year ended 30 June 2000, and accordingly, the diluted
earnings per share was not shown. Deemed ordinary shares were
identified as shown in reconciliation below for the purpose of
calculating diluted loss per share during the year ended 30 June
2001. The effect is anti-dilutive and accordingly, the diluted
loss per share was not shown for the year ended 30 June 2001.
The reconciliation of number of ordinary shares is as follows:
Weighted average number of ordinary shares used in
calculating basic loss per share 887,349,507
Deemed issue of ordinary shares at
no consideration 1,200,000
------------
Weighted average number of ordinary shares used in
calculating diluted loss per share 888,549,507
============
NORTHERN INTL: Price & Turnover Movements Unexplainable
-------------------------------------------------------
Northern International Holdings Limited has noted the recent
increases in the price and the increases in trading volume of
the shares of the Company and wish to state that we are not
aware of any reasons for such increases.
The Company also confirmed that there are no negotiations or
agreements relating to intended acquisitions or realizations
which are discloseable under paragraph 3 of the Listing
Agreement, neither is the Board aware 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
PRICERITE GROUP: Sees No Reason For Share Price Increase
--------------------------------------------------------
Pricerite Group Limited noted the recent increases in the price
of the shares in the Company and wish to state that, save for
the proposed right issue of 1,384,518,000 rights shares at
HK$0.10 per right share as announced by the Company on 9 October
2001, we are not aware of any reasons for such increases.
The Company also confirmed that there are no negotiations or
agreements relating to intended acquisitions or realizations
which are discloseable under paragraph 3 of the Listing
Agreement, neither is the Board aware 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.
VERON DEVELOPMENT: Faces Winding Up Petition
--------------------------------------------
The petition to wind up Veron Development Limited is set for
hearing before the High Court of Hong Kong on November 7, 2001
at 9:30 am.
The petition was filed with the court on August 1, 2001 by Bank
of China, Hong Kong Branch (whose undertakings have been
succeeded by Bank of China (Hong Kong) Limited whose registered
office is situated at Bank of China Tower, 1 Garden Road,
Central, Hong Kong.
WEALTHY FULL:: Winding Up Sought By Jusco Stores
------------------------------------------------
Jusco Stores (Hong Kong) Co., Limited is seeking the winding up
of Wealthy Full Trading Limited. The petition was filed on
August 6, 2001 and will be heard before the High Court of Hong
Kong on November 14, 2001. Jusco Stores holds its registered
office at Kornhill Plaza (South), 2 Kornhill Road, Quarry Bay,
Hong Kong.
=================
I N D O N E S I A
=================
ASIA PULP: Indonesian Units' Profit Transferred To China
--------------------------------------------------------
The profits generated by Asia Pulp & Paper (APP)'s Indonesia
units are being transferred gradually in order to finance the
group's Chinese business unit operations, Bisnis Indonesia
reported yesterday.
A Bisnis source analyzing the debt payments of APP's units PT
Pabrik Kertas Tjiwi Kimia Tbk (TKIM), PT Indah Kiat Pulp & Paper
Tbk (INKP), PT Lontar Papyrus Pulp & Paper Industry, and PT
Pindo Deli Pulp & Paper Mills said he reached that conclusion
based on APP's better performance in China.
"The probability of profit transferring from APP's Indonesia
units to APP's China unit is very high since the condition there
is more conducive," he said.
Yan Partawijaya, head of corporate communications division of
the Sinar Mas Group-owned by APP, failed to comment on the
issue.
According to the source, in terms of the Indonesia business
scale, they could have easily paid some of the bond debts. He
said that APP's management had once issued a projection on the
performance of the Indonesian units for 2001. Based on the
estimation, APP management expected stagnant performance.
SEMEN GRESIK: Cemex Accepts Setback In Sale
-------------------------------------------
Cemex SA (CX) accepted the Indonesian government's decision to
delay the planned sale of PT Semen Gresik (P.SGK) to CX until
December, The Asian Wall Street reported Monday.
President Megawati Sukarnoputri's announced last week that the
government postponed the sale for a privatization team to study
the impact of the sale. But Cemex said it continues to support
the Indonesian government and its decision to extend a put
option on local cement company Semen Gresik until Dec. 14.
"Cemex understands that the government needs this time to assess
the issues and arrive at the most appropriate solution for the
good of Indonesia," Cemex said.
The government had a long-standing agreement to sell its entire
51 percent stake in Gresik to Cemex through a put option by Oct.
26 for $520 million. However, there were problems linked to
Semen Gresik's unit Semen Padang in West Sumatra. The government
later proposed spinning off Semen Padang to get around the
problem, but that issue remains in dispute.
TIMAH TBK: House Ready To Help Resolve Illegal Mining Problem
-------------------------------------------------------------
If necessary, The House of Representatives is ready to help
state-owned tin mining giant PT Timah Tbk seek ways to resolve
rampant illegal mining activities at its mining sites,
IndoExchange reports Monday, citing Legislator Ramson S. of
House Commission VIII.
"We (the House) can then set up a coordination system with both
central and local administrations to put an end to those illegal
practices," Ramson said.
However, he did not provide details as to when the meeting could
take place, saying it was for Timah to decide.
"The rampant illegal tin mining had contributed to pressure on
the price of the commodity, which has already been badly hit by
the world's economic recession," Timah president Erry Riyana
Hardjapamekas said.
Last month Hardjapamekas predicted net profits for this year
would plummet. He also projected big losses for next year if the
government fails to resolve the problem immediately.
=========
J A P A N
=========
CHUO MITSUI: Seeks Funding As Part Of Restructuring Efforts
-----------------------------------------------------------
In an effort to stay afloat, Chuo Mitsui Trust and Banking Co.
announced the division of its wholesale and retail trust
operations by transferring its wholesale business to its
subsidiary Sakura Trust & Banking Co. before March, Japan Times
reported Sunday.
The ailing financial institution is also seeking between Y60
billion and Y70 billion in funding from other members of the
Mitsui Group.
Following the planned division and transfer, both trust banks
will be united into one holding company and shall be called
Mitsui Trust Holdings.
Chuo Mitsui, currently suffering from bad loans and stock
losses, has been exerting continued efforts to create a
restructuring plan that would make it more attractive to
investors.
Last week, the company drastically cut its earnings projections
to a net loss of Y36 billion for the first half ended September
30. Its previous projection a net profit of Y7 billion.
DAIWA GROUP: Moody's Reviews Ratings For Possible Downgrade
-----------------------------------------------------------
Moody's Investors Service has placed the Baa1 long-term issuer
rating of Daiwa Securities Co., Ltd. (Daiwa) on review for
possible downgrade. The Baa2 long-term debt rating of Daiwa
Securities Group Inc. (DSG), and the credit ratings of overseas
subsidiaries guaranteed by DSG (Daiwa America Corp., Daiwa
Securities Trust & Banking plc, and Daiwa Europe Finance B.V.)
are also placed on review for possible downgrade. At the same
time, Moody's has changed the outlook for Daiwa Securities SMBC
Co., Ltd.'s (Daiwa Securities SMBC) credit ratings to negative
from stable.
The rating agency says that the Daiwa review will focus on its
stand-alone ability to stabilize its targeted retail operations
amid the weak economic climate and deteriorating operating and
business environment.
Moody's will also examine the balance sheet impact from losses
on impaired assets held by the group's real estate subsidiary,
and residual risks in relation to its capital.
The rating outlook change of Daiwa Securities SMBC reflects
Moody's increasing concern about that company's stand-alone
ability to improve and stabilize its wholesale operating
franchise in the face of limited prospects of an immediate
strong recovery of the capital market.
Moody's will continue to monitor its progress in diversifying
its business and earnings sources, given the competition from
other Japanese and foreign houses. Moody's adds, however, that
the current ratings fully incorporate the likelihood of implicit
credit support for Daiwa Securities SMBC from Sumitomo Mitsui
Banking Corporation (long-term/short-term credit rating:
A3/Prime-1) in the event of a possible stress situation.
The following companies and ratings were placed on review for
possible downgrade:
Daiwa Securities Co., Ltd. -- Baa1 long-term issuer rating.
Daiwa Securities Group Inc. -- Baa2 unsecured senior debt
rating,
Daiwa America Corp. -- Baa2 senior long-term debt rating
Daiwa Securities Trust & Banking (Europe) plc - Baa2 senior
long-term debt rating
Daiwa Securities Trust & Banking (Europe) plc - Baa3
subordinated long-term debt rating
Daiwa Europe Finance B.V. - Baa2 senior long-term debt rating
The following rating was excluded from the review process:
Daiwa Securities Co., Ltd. -- Prime-2 short-term issuer rating.
DAIWA SECURITIES: Posts Y131B Group Net Loss
--------------------------------------------
Japanese brokerage firm Daiwa Securities Group Inc. posted a
group net loss of Y131.60 billion for the first half ended
September 30, a turnaround from a profit of Y41.95 billion
posted during the same period last year.
The Asian Wall Street Journal reported Sunday that the brokerage
firm's woes can be attributed to Japan's sagging stock market
and its effect on broking and underwriting commissions.
Aside from the group net loss already announced, the company
also suffered a special loss of Y127.5 billion due to extra
costs incurred as it restructured its real estate operations in
preparation of its New York listing.
Last month, international rating agency Fitch, lowered the
Individual ratings of Daiwa Securities SMBC: Individual rating
lowered to 'C/D' from 'C'; Outlook for the Long-term rating of
'A-' (A minus) is revised to Negative
NEC CORPORATION: Declares H1 Losses
-----------------------------------
Citing losses in its electronic device operations, specifically
memory chips, NEC Corporation sank deeply in the red for the
first half ended September 30, the Asian Wall Street Journal
reported on October 28.
With the recent terrorist attacks contributing to the slumping
demand plaguing the global technology industry, the company
expects to post losses until March of next year.
For the second half of this year, the electronics giant plans to
speed up its restructuring efforts by streamlining chip
production lines, shifting workers out of the suffering
electronics devices division, and further cutting capital
spending.
For the first half ended September 30, NEC posted a group
operating loss of Y55.3 billion in its electronics device
division. Losses are expected to increase over Y100 billion for
the whole year.
SONY CORPORATION: Units' Future Grim As US$107M Loss Posted
------------------------------------------------------------
Previously expected by analysts to post a small profit, Sony
Corporation instead announced a net loss of Y13 billion (US$107
million) for the quarter ended September 30, according to a
Friday report by News On Japan.
To offset the damage, Sony also announced cost cutting measures
that include the closing of 48 business units and finding ways
to scale down procurement costs by 15 percent.
However, analysts remain skeptical as to whether the efforts
will help. According to the same analysts, these new efforts
would only be enough to partly relieve the damage done by the
falling prices of products like semiconductors, personal
computers and display screens.
TOSHIBA CORPORATION: H1 Losses Drive New Cost-Cutting Measures
--------------------------------------------------------------
Financially hurt by its losing electronic device operations,
Toshiba Corporation posted losses for the first half ended
September 30, according to a report by the Asian Wall Street
Journal on Sunday.
The company still expects losses for the remainder of the year
until March, and plans to accelerate restructuring efforts to
stay afloat amid the recent Information Technology slump.
As part of restructuring efforts, Toshiba plans to cut 10
percent, more or less around 3,000 group workers, from its
semiconductor division by the end of this year.
Chip production facilities will be reduced by 30 percent in an
effort to decrease fixed costs by 20 percent for the year.
Toshiba posted a group operating loss of Y72 billion for the
first six months until September. Chip division losses are
expected to increase to Y150 billion for the whole year.
The company now forecasts a group net loss of Y200 billion for
the whole year. A year ago, the company posted a profit of
Y96.17 billion.
=========
K O R E A
=========
HYNIX SEMICONDUCTOR: Issued GDRs Dumped Back To SK Exchange
-----------------------------------------------------------
Of about 530.82 million in global depository receipts (GDRs)
issued by Hynix Semiconductor last June, about 452.16 million or
86.2 percent have been converted into shares listed in the Korea
Stock Exchange, making the overseas issuance almost meaningless,
the Korea Herald reported on October 29, quoting officials of
Korea Securities Depository (KDS).
According to a KDS official, the issuance of the GDR's, lead
managed by Salomon Smith Barney and LG Investment and
Securities, was meant to attract foreign capital, but overseas
investors have been uncooperative, converting the DR's into
shares and selling them, effectively flooding the market.
The same official blamed the massive sell-offs to the current
free fall of chip prices, because according to him, foreign
investors wanted to limit their losses by disposing of the
Global DRs.
HUNIX SEMICONDUCTOR: Creditor Banks May Not Join Bailout
--------------------------------------------------------
Three of ailing Hynix Semiconductor Inc.'s creditor banks,
Kookmin Bank, Housing & Commercial Bank and Shinhan Bank are
mulling over the possibility of selling their debt in the
troubled Korean chipmaker thereby avoiding participation in the
bailout, according to a Sunday report by the Asian Wall Street
Journal.
No final decisions regarding non-participation in the bailout
have been released, although a spokesman for Housing &
Commercial said publicly that his company has been considering
the move as part of its options.
Housing & Commercial has loaned W172.1 billion to Hynix, Kookmin
on the other hand, has granted the company a total of W409.7
billion in loans while Shinhan Bank's exposure to the Hynix
totaled W400.6 billion.
HYUNDAI GROUP: Tour Unit Cuts Staff Further
-------------------------------------------
Hyundai Asan, the Hyundai Group unit in charge of the Mt.
Kumgang tour project, has decided to again cut staff numbers,
including executives, in a bid to cope with the current
liquidity crisis, the Digital Chosun reported Friday.
Chung Mong-hun, President of the Hyundai Group will be heading
to North Korea to meet with the officials of the country's Asia
-Pacific Peace Committee to find ways of "jumpstarting" the
inter-Korea tour project, currently facing cessation. Hyundai
Asan is currently seeking government aid to be able to pay for
the tour fee.
HYUNDAI HEAVY: Sells Stakes To Hasten Spin-Off
-----------------------------------------------
In order to move ahead with its bid to spin off from the Hyundai
Group, Hyundai Heavy Industries (HHI) sold large portions of its
stakes in sister companies, Hyundai Securities and Hyundai
Corporation, according to a Friday report by the Digital Chosun.
Last Friday, HHI announced that it has sold off its 768,000
shares in Hyundai Securities, effectively lowering its shares to
2.52 percent. In the same announcement, the company disclosed
that it has also sold its 2.2 million shares stake in Hyundai
Corp., lowering its stake to 2.91 percent.
This move is integral to the company's eventual separation from
the Hyundai Group because it needs to lower its stakes in its
sister companies below 3 percent as a requirement for
separation.
===============
M A L A Y S I A
===============
ANSON PERDANA: Restraining Order Hearing Rescheduled
----------------------------------------------------
Anson Perdana Berhad announced that the hearing regarding the
Company's application for an extension of the Restraining Order
pursuant to Section 176 of the Companies Act, 1965, has been
continued to 2 November 2001.
Background
The 1997 financial crisis adversely affected the operations of
the Group and the Company. In view of these adverse financial
conditions, the Group in December 1998 sought the assistance of
the Corporate Debt Restructuring Committee (CDRC) to restructure
its short-term debts. The Company has also appointed an
Independent Financial Consultant to provide advisory services
pursuant to a restructuring scheme.
In October 1999, the Company appointed an additional advisor to
act directly on behalf of the Group to develop and negotiate
with the financial institutions, trade and other creditors an
integrated debt-restructuring scheme. In line with the Group's
restructuring efforts, on 29 February 2000, the Group sold
several parcels of oil palm plantation land to Felcra Berhad for
RM98m cash.
As the Group's debt restructuring dragged on to the end of 2000,
the Group applied for legal protection under Section 176 of the
Companies Act, 1965, to the Kuala Lumpur High Court (KLHC). On
September 25 2000, the KLHC granted a three-month Restraining
Order (RO) for the Company to implement the restructuring
scheme, which was subsequently extended to 24 March 2001. An
application to extend the RO was submitted to the High Court and
a hearing is pending.
ARTWRIGHT HOLDINGS: Amends Memorandum of Association
----------------------------------------------------
The Board of Directors of Artwright Holdings Berhad (Artwright
or the Company) announced that the Company proposes to amend its
existing Memorandum and Articles of Association (Proposed
Amendments) to comply with the provisions of the new Listing
Requirements of the KLSE and to incorporate the relevant
regulatory and statutory requirements.
DETAILS OF THE PROPOSED AMENDMENTS
Proposed Amendment to the Memorandum of Association
The Memorandum of Association of the Company is proposed to be
amended by inserting a new Clause III(50) immediately after the
existing Clause III(49), to read as follows:
"III(50) To purchase its own shares subject to, and in
accordance with the provisions of the Companies Act, 1965, the
rules, regulations and orders made pursuant thereto (as
modified, amended or re-enacted from time to time) and the
requirements of the Kuala Lumpur Stock Exchange and any other
relevant authority."
Articles of Association
The Proposed Amendments to the Articles of Association of the
Company are made to ensure compliance with the provisions of the
new Listing Requirements of the KLSE and also to update the
Articles so as to be in line with current practices and where
relevant to render consistency throughout.
RATIONALE FOR THE PROPOSED AMENDMENTS
The Proposed Amendments are to incorporate the provisions of the
Listing Requirements as required by the KLSE and other relevant
regulatory and statutory requirements, where relevant, to render
consistency throughout.
CONDITIONS OF THE PROPOSED AMENDMENTS
The Proposed Amendments are subject to and conditional upon the
approvals being obtained from the following:
(i) KLSE;
(ii) Shareholders of Artwright at an Extraordinary General
Meeting (EGM) to be convened.
DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTERESTS
None of the Directors and/or substantial shareholders and/or
persons connected to Directors and/or substantial shareholders
of Artwright have any interests, either direct or indirect, in
the Proposed Amendments.
EFFECTS OF THE PROPOSED AMENDMENTS
The Proposed Amendments will not have any impact on the share
capital, earnings, dividends and net tangible assets of the
Company.
DIRECTORS' RECOMMENDATION
The Directors are of the opinion that the Proposed Amendments
are in the best interest of the Company and its shareholders as
the amendments will ensure compliance with the relevant
statutory and regulatory requirements.
CSM CORP.: Awaits KLSE's Extension Request Approval
---------------------------------------------------
On behalf of the Board of Directors of CSM Corporation Berhad
(CSM or the Company), announced that the Company was unable to
make the Requisite Announcement by 25 October 2001 as CSM is
still in discussions with prospective investors on potential
assets for injection.
In relation to this, the Company wrote to the KLSE on 8 October
2001 regarding a further extension to 31 December 2001 to make
the Requisite Announcement. Currently, the application is still
pending the KLSE's approval.
JASATERA BERHAD: Applies Further Extension To Complete RA
----------------------------------------------------------
On behalf of the Board of Jasatera Berhad, Public Merchant Bank
Berhad announced that the Company, via our letter to KLSE dated
17 October 2001 requested an extension of another one (1) month
(i.e. up to 24 November 2001) (Extension) to comply with the
requirements of paragraph 5.1(b) of PN4/2001. The Company is
currently awaiting the KLSE's reply on its request for the
Extension.
On 24 August 2001, Jasatera made an announcement on the detailed
plan to regularize the financial condition of the Company
(Requisite Announcement). Pursuant to paragraph 5.1(b) of
PN4/2001 of the KLSE Listing Requirements, Jasatera was required
to submit its plan to regularize its financial condition to the
relevant authorities for approval, within two (2) months from
the Requisite Announcement, i.e. by 24 October 2001.
NCK CORP.: Finalizing Financial Regularization Discussions
----------------------------------------------------------
The Special Administrators (the SA) announced on behalf of NCK
Corporation Berhad (Special Administrators Appointed) that the
Company had on 28 July 2001 applied for an extension of six (6)
months to release the Requisite Announcement (RA) to the Kuala
Lumpur Stock Exchange (KLSE). The KLSE, on 30 August 2001,
approved an extension of two (2) months from 26 August 2001 to
25 October 2001 to enable the Company to announce its RA to the
Exchange for public release.
The Company is currently finalizing negotiations with interested
parties with the view of regularizing financial conditions. The
Company is therefore not able to announce a detailed plan to
regularize its financial condition and has accordingly on 24
October 2001 sought for an extension from the KLSE for another
two months to make the RA. The approval from the Exchange is
still pending.
RENONG BERHAD: Unit Enters Conditional SPA With Bukit Indah
-----------------------------------------------------------
On behalf of Renong Berhad (Renong or the Company), Commerce
International Merchant Bankers Berhad (CIMB) announced that
Prolink Development Sdn. Bhd (Prolink), acting as agent for
Prolink Greens Sdn. Bhd (Prolink Greens), entered into a
conditional sale and purchase agreement (SPA) on 25 October 2001
with Bukit Indah (Johor) Sdn. Bhd. (Bukit Indah) to dispose of
two (2) parcels of freehold land held under H.S.(D) 258291 PTD
71060 (1st Land) and H.S.(D) 317225 PTD 116765, Mukim of Pulai,
Daerah Johor Bahru, Johor Darul Takzim, measuring approximately
295.221 acres and 157.404 acres respectively for a cash
consideration of RM118,298,070.
The freehold land held under H.S.(D) 317225 PTD 116765 measures
approximately 169.404 acres, of which a portion measuring
approximately 12 acres will be excluded (2nd Land) from the
proposed disposal of two (2) parcels of freehold land by Prolink
Greens, a wholly-owned subsidiary of Prolink, which in turn is a
64 percent-owned subsidiary of Renong, to Bukit Indah, a wholly-
owned subsidiary of SP Setia Berhad, for a cash consideration of
rm118,298,070 (Proposed Disposal).
Prolink Greens and Bukit Indah will apply to the relevant
authority for partition of the 2nd Land upon registration of the
transfer of the 2nd Land.
The 1st Land and 2nd Land are collectively known as the "Land".
The Land is situated in Gelang Patah, which is located at the
south-west of Johor Darul Takzim, and forms part of the
development project known as Bandar Nusajaya.
DETAILS OF THE PROPOSED DISPOSAL
The cash consideration of RM118,298,070 for the Land
(Consideration) was arrived at on a willing-buyer willing-seller
basis after taking into consideration the open market valuation
of RM118,300,000 for the Land by Jones Lang Wootton, a company
of registered professional valuers, on 12 September 2001 using
the comparison method of valuation.
The Consideration shall be paid by Bukit Indah in the following
manner:
(i) A ten percent (10 percent) deposit of RM11,829,807 was paid
in favor of Pengurusan Danaharta Nasional Berhad (Danaharta)
upon signing of the SPA; and
(ii) RM94,768,263 of the balance sum shall be paid to Danaharta
whilst the remaining RM11,700,000 shall be paid to Prolink
within two (2) months from the day on which the last of the
conditions precedent as set out in Section 5 herein has been
fulfilled.
The aggregate sum of RM106,598,070 paid and payable to Danaharta
shall be utilized to service the interest obligation of
Prolink's borrowings from Danaharta whilst the remaining
RM11,700,000 shall be utilized for the working capital of
Prolink.
The Land is currently deeded to BSN Commercial Bank Berhad,
Alliance Merchant Bank Berhad (formerly known as Amanah Merchant
Bank Berhad), Arab Malaysian Merchant Bank Berhad, Malayan
Banking Berhad and Affin Bank Berhad (formerly known as Perwira
Affin Bank Berhad) (collectively known as the "Chargees"). The
rights, titles, interests and benefits of the Chargees are
vested in Danaharta.
The Land will be disposed of free from all encumbrances and with
vacant possession, but subject to all categories of land use,
conditions and restrictions in interest, express or implied, and
upon the terms and conditions as contained in the Deed of
Covenants as mentioned in Section 2.6 herein.
Prolink and Bukit Indah have also, on the same date entered into
a Deed of Covenants, whereby Bukit Indah covenants with Prolink
that it will, inter-alia, ensure that all development or works
or construction carried on or caused or permitted to be carried
out upon the Land shall be consistent with and shall be for the
purpose of residential development in accordance with and as
anticipated in the Development Master Plan (DMP) submitted to
the State Government of Johor Darul Takzim by Prolink.
Bukit Indah also agrees, covenants and undertakes to arrange for
the provision or construction of any sewerage, water, roads,
drains, electricity and telecommunication supplies required
pursuant to the DMP leading up to the boundaries of the Land
(Primary Infrastructure) on a cost sharing basis between and
amongst all owners and/or developers whose land will be served
by the Primary Infrastructure.
In the event that Bukit Indah fails to arrange for the provision
or construction of the Primary Infrastructure, Prolink shall be
entitled but not obliged to engage a third party to provide the
Primary Infrastructure and Bukit Indah shall bear its share of
the cost on the aforementioned cost sharing basis. In addition,
all internal roads, drains, sewerage, water supply, electricity
and telecommunication supplies within the Land shall be
constructed by Bukit Indah at its own cost and expense and shall
connect to and be suitable for connection to the Primary
Infrastructure.
A copy of the conditional SPA and the Deed of Covenants will be
made available for inspection at the Registered Office of Renong
at 2nd Floor, Bangunan MCOBA, 42, Jalan Syed Putra, 50460 Kuala
Lumpur during normal office hours between Monday and Friday
(except public holidays) for a period of three (3) months from
the date of this announcement.
The Land was acquired by Prolink Greens between May 1994 and
June 1995 at a cost of approximately RM41,996,000. The net book
value, based on its latest audited accounts as at 30 June 2000,
amounted to approximately RM61,081,000.
RATIONALE FOR THE PROPOSED DISPOSAL
The Proposed Disposal will enable the Renong Group to continue
the disposal of its land bank to an established and reputable
co-developer for the development of the Land and its vicinity
known as Bandar Nusajaya.
The Proposed Disposal is also part of Renong's strategy to
selectively divest certain properties in order to increase its
operating cashflow and to reduce the total debt required for the
development of Bandar Nusajaya.
FINANCIAL EFFECTS OF THE PROPOSED DISPOSAL
Share Capital
The Proposed Disposal will not have any effect on the share
capital of Renong.
Substantial shareholding
The Proposed Disposal will not have any effect on the
substantial shareholders' shareholdings in Renong.
Earnings
Based on the latest audited consolidated accounts of Renong for
the financial year ended 30 June 2000, the Proposed Disposal is
expected to result in a profit after taxation and minority
interests of approximately RM26,366,000 at the Renong Group
level.
Net tangible assets (NTA)
Based on the latest audited consolidated accounts of Renong for
the financial year ended 30 June 2000, the Proposed Disposal
would increase the NTA of the Renong Group by 1.14 sen per share
as set out below:
Audited as at After the
30 June 2000 Proposed
RM'000 Disposal
RM'000
Share capital 1,161,832 1,161,832
Share premium account 2,000,456 2,000,456
Reserves (1,515,736) (1,489,370)
Shareholders' equity 1,646,552 1,672,918
Less: Intangible assets (382,608) (382,608)
NTA 1,263,944 1,290,310
No. of shares in issue ('000) 2,323,664 2,323,664
NTA per share (sen) 54.39 55.53
CONDITIONS OF THE PROPOSED DISPOSAL
The Proposed Disposal is conditional upon the following
approvals being obtained within a period of four (4) months from
the date of the SPA (Approval Period):
(i) shareholders of Renong at an Extraordinary General
Meeting to be convened;
(ii) shareholders of Prolink Greens and Bukit Indah;
(iii) Foreign Investment Committee;
(iv) State Authority of Johor Darul Takzim; and
(v) consent by Danaharta to release the Land.
In the event all the aforementioned approvals have not been
obtained within the Approval Period, the conditional SPA shall
be automatically extended for a further period of two (2)
months.
DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
Mr. Lee Siew Choong, a past Director of Renong, having resigned
on 3 October 2001, is a partner of a legal firm where Y. Bhg.
Dato' Abdul Rashid bin Abdul Manaff, Y. Bhg. Tan Sri Zaki bin
Tun Azmi and Mr. George Anthony David Dass are partners and also
directors of SP Setia. Y. Bhg. Dato' Abdul Rashid bin Abdul
Manaff is also a major shareholder of SP Setia.
Save as disclosed above, none of the Directors and major
shareholders of Renong or persons connected to them has any
interest, direct or indirect, in the Proposed Disposal.
INDEPENDENT ADVISER
In compliance with Paragraph 10.08 of the Listing Requirements,
the Directors of Renong have appointed Southern Investment Bank
Berhad (formerly known as Perdana Merchant Bankers Berhad) as
independent adviser to the minority shareholders of Renong in
respect of the Proposed Disposal.
DIRECTORS' RECOMMENDATION
The Directors, after due consideration of all aspects of the
Proposed Disposal, are of the opinion that the Proposed Disposal
is in the best interests of the Company.
ADVISER
CIMB has been appointed as adviser to Renong for the Proposed
Disposal.
TAT SANG: Elaborates On Appointment Of Receiver, Manager
--------------------------------------------------------
Tat Sang Holdings Berhad (TSHB or the Company) released
additional information regarding its appointment of receiver and
manager:
A. Details Information Of The Subsidiaries And Its Property
Which Are Under The Receiver and Manager
Mercuries & Muar Wooden Furniture Mfg Sdn Bhd is principally
engaged in the manufacturing of furniture to cater to the export
orders of TSHB. The principal products of MMWF comprises wooden
furniture, particularly rubberwood, which include fully knock-
down and semi knock-down chairs, dining table and antique dining
table with veneer top. The products are mainly exported to the
USA and Europe.
Jastaka Sdn Bhd and Techmax Industry Sdn. Bhd. are investment
holding company. To date, JSB and TISB have not started trading
or commence operations.
The Board of Directors wished to advise that on 22 December,
1999, MMWF has entered into Loan Facility Agreement totaling
RM12.0 million of which Malayan Banking Berhad is the Manager
for the facilities and consists of the following:
TYPE RM'000
Overdraft (OD) 1,000
Bankers Acceptance (BA) 11,000
12,000
To date, MMWF has fully utilized the loan facilities of RM12.0
million.
The Loan Facilities are secured by:
ú Third party second legal charged for RM6,000,000 over 2
parcels of land with factories in Muar, Johor belonging to JSB
and TISB
ú Second debenture for RM6,000,000 on MMWF, JSB and TISB's
fixed and floating assets
ú A Corporate Guarantee by TSHB
B. The Net Book Value Of The Affected Properties
Based on the audited accounts of TSHB as at 31 July, 2000, the
net book value (NBV) of the affected properties are as follows:
COMPANY TYPE OF ASSETS NBV AS AT 31.07.2000
MMWF Fixed assets 18,923,315
JSB Landed properties 3,159,501
TISB Landed properties 3,434,139
C. Details Of The Events Leading To The Appointment Of The
Receiver And Manager
Due to the default in payment for the aforesaid banking
facilities, MMWF, JSB, TISB were placed under receivership upon
the appointment of Mr Kenneth Teh Ah Kiam and Mr Chew Hoy Ping
of Pricewaterhouse Coopers on 23 day of October 2001 as per the
terms and conditions of the debenture of the loan facilities.
D. The Financial And Operational Impact Of The Aforesaid
Appointment
The R & M is reviewing the position to determine the operational
and financial impact of the Group at this point in time
E. The Expected Losses Arising From the Aforesaid Appointment
As the wholly owned subsidiaries of TSHB have been placed under
the receivership, the losses could not be determined at this
point in time
F. The Steps Taken Or Proposed To Be Taken By TSHB In Respect Of
The Aforesaid Appointment
As, such, the Directors are unable to comment on the proposed
actions to be taken by TSHB.
TRANS CAPITAL: Awaits Reply On Extension Appeal
-----------------------------------------------
The Board of Directors of Trans Capital Holding Berhad (TCHB)
announced that TCHB had, by the letter dated 19 October 2001 to
the Kuala Lumpur Stock Exchange (KLSE), appealed for a further
extension to comply with the requirements of paragraph 5.1 of
PN4/2001 because TCHB need more time to work on the new
restructuring scheme to regularize its financial position. TCHB
is currently waiting for the KLSE's reply to its appeal.
On 27 September 2001, the Board of Directors TCHB made an
announcement that TCHB had, on 25 September 2001, received
approval from the KLSE for an extension of two (2) months from
22 August 2001 to 21 October 2001 to comply with the
requirements of paragraph 5.1 of PN4/2001.
WING TIEK: Finalizing Restructuring Proposal With White Knight
--------------------------------------------------------------
The Board of Directors of Wing Tiek Holdings Berhad (WTHB)
informed that WTHB has met up one of the major creditors and
potential "White Knight" to finalize the restructuring plan to
regularize its financial condition. The major creditor and
potential "White Knight" are still exploring alternative options
for the restructuring plan. As such, WTHB is still in the midst
of finalizing the proposal in relation thereto.
In view thereof, on 19 October 2001, WTHB submitted an
application to the Exchange for an extension of time to make the
Requisite Announcement, which is now pending approval from the
Exchange
ZAITUN BERHAD: In Talks With Creditors On Proposed Scheme
---------------------------------------------------------
Zaitun Berhad (Zaitun or the Company) announced that it is still
in negotiations with its creditors to procure their agreement-
in-principle on its proposed restructuring scheme and
anticipates that the deadline for the Requisite Announcement of
25 October is unlikely to be met. Accordingly, the board of
Directors wishes to announce that it had on 17 October 2001
applied to the KLSE for a further extension of three (3) months
for the Company to make its Requisite Announcement. The
application is currently pending the KLSE's decision.
On 25 September 2001, the Board of Directors of Zaitun announced
that the KLSE granted the Company conditional approval for an
extension of two (2) months from 26 August 2001 to 25 October
2001 to enable the Company to announce a detailed proposal.
Implementation of the proposal will regularize the financial
condition of the Company ("Requisite Announcement").
On 4 October 2001 Zaitun announced that it had appointed Messrs
Howarth Mok & Poon, a firm of Public Accountants as its
Monitoring Accountant pursuant to paragraph 6.1(a) and in
compliance with the conditional approval of KLSE.
=====================
P H I L I P P I N E S
=====================
NATIONAL BANK: P24B Worth Assets Hitting Auctioned Block
--------------------------------------------------------
Around P24 billion worth of Philippine National Bank foreclosed
assets will be bid out to seven investment banks by yearend,
Business World reported yesterday.
The terms of reference for the bidding will be released sometime
this week, according to PNB president Feliciano L. Miranda Jr.
Investment banks that have expressed interest so far are ING
Barings, Lehman Brothers, Deutsche Bank, Pricewaterhouse
Coopers, JP Morgan Chase and Morgan Stanley Dean Witter.
The banks signified their intent to purchase PNB's assets
through the creation of asset management companies (AMC) whose
purpose are to buy bank's troubled assets at discounted prices
and later resell them through debt securities to make profits.
The non-performing loan (NPL) ratio of PNB has been at its worst
in recent years, consisting about 53 percent of its total loan
portfolio, more than three times the commercial banking
industry's average of 18 percent.
Partly due to higher interest expenses, lower earnings and
larger provisions for probable loan losses, PNB posted P3.92
billion in losses for the second quarter of the year.
Plans are in the works to reduce the bank's NPL's by P15 billion
or bring it 35 percent of the total loan portfolio. A
rehabilitation plan that would hopefully resurrect PNB into
profitability is currently being worked out.
NATIONAL POWER: Enters Trading Deal With China, PASAR
-----------------------------------------------------
The National Power Corporation (Napocor) together with the
Philippine Associated Smelting and Refining Corporation (Pasar)
and the People's Republic of China have engaged in a counter
trading arrangement which will facilitate trading between them
with no cash involved, according to a report by the Inquirer
News Service yesterday.
Napocor gets its coal needs from Chinese suppliers while China
purchases copper concentrate from Pasar, which in turn, gets its
electricity requirement from Napocor.
A general agreement regarding the trade will be signed when
Napocor president, Jesus Alcordo accompanies Philippine
president Gloria Macapagal Arryo when she makes her presidential
visit to China.
Transmission assets of Napocor are up for sale this month as
part of the Philippine government's efforts to privatize the
ailing power company.
NATIONAL POWER: Auction Nearly Over
-----------------------------------
The final auction for the sale of National Power Corporation's
transmission assets is finally nearing completion. Only the
final list of bidders for the state-owned power company's
industrial all-risk insurance policy has yet to be completed,
because revisions have been made in its provisions by the joint
committee tasked to oversee the bidding, the Inquirer News
Service reported on Sunday.
The insurance policy covers US$6.5 billion worth of assets,
which include generating plants, sub-stations and a nationwide
transmission network.
Efforts to trim the list of bidders did not succeed. The list
still includes six insurance brokers Aon Energy, Alexander
Forbes, Andrew Higgins Pickering, Arthur J. Gallagher, Marsh &
McLennan and Heath Lambert.
The November schedule for the new bidding has been moved yet
again to November 22.
===============
T H A I L A N D
===============
SIAM STRIP: Postpones Vote on Debt Plan
---------------------------------------
Siam Strip Mill's (SSM) Bt26-billion debt restructuring plan
became stuck at its first creditors meeting late last week
because four new key amendments were proposed, The Nation
reported Monday, thus voting on the plan has been postponed to
November 5.
Of the more-than-200 creditors attending the meeting, 70
controlled debts amounting to a combined Bt16.7 billion.
Citibank, Itochu and Sumitomo Bank of Japan are the three
largest lenders.
"We need more time to consider the plan in detail. A final
decision is expected to be made by the next meeting," an
anonymous source from Citibank, one of the three largest
lenders, said.
The bank alone holds 37 per cent of the total debt while Itochu
and Sumitomo Bank hold 23 and 26 per cent, respectively.
"The creditors need more time to consider the four amendments
that were presented to them for the first time at the meeting. I
do believe the plan will get the approval at the next meeting,"
Joint Managing Director Warwick Kneale of Ferrier Hodgson said.
One of the four amendments concerns the amount of debt the
creditors would get back after the restructuring.
"Creditors are still reluctant to vote for the plan which they
saw for the first time. They need to study the plan critically
because SSM is a big company and the total debt is considered
huge," said a SSM source.
Although the company went into rehabilitation following a
decision by the Central Bankruptcy Court in March, its plant
continues to run. Some trade creditors had injected funds so it
could purchase raw materials, said the SSM source.
SRIVARA REAL: Posts Business Reorganization Plan Report
-------------------------------------------------------
Srivara Real Estate Group Public Company Limited (he Company) is
responsible to submit the progressive report on the Business
Reorganization Plan to the receiver according to Bankruptcy Act.
Asset Recovery Company Limited, the plan administrator,
summarized the progressive Company report:
1. According to Reorganization Plan clause 4.2.3, the Company
reduced registered capital and paid up capital by reducing the
number of issued shares from 100 shares to 1 share. After the
reduction, the registered and paid up capital was changed from
Bt1,000 Million or 100 million shares to Bt10 Million or 1
million ordinary shares. The Company already informed the TSD to
issue new share certificates to the shareholders.
2. The Company replaced the paid contracts with new contracts
for customers who hold contract to buy and sell of land and that
land, has no mortgage. The rest of customers are under
negotiation and some of them cannot be reached.
3. The Company has transferred mortgaged assets to creditor
group 1 totaling Bt697.15 Million and to creditor group 2
totaling Bt103.80 million. Remaining assets could not be
transferred because of seizure or under syndicate loan.
4. In order to have assets ready to be sold and for better
living environment of resident, the Company has improved the
project environment.
5. The Company has insured freehold assets to protect damage,
which might be occurred.
THAI ELECTRONIC: Files Business Reorganization Petition
-------------------------------------------------------
Electronic pieces and sound instrument manufacturer Thai
Electronic Industry Public Company Limited's (DEBTOR), Petition
for Business Reorganization was filed to the Central Bankruptcy
Court:
Black Case Number 529/2543
Red Case Number 622/2543
Petitioner: THAI ELECTRONIC INDUSTRY PUBLIC COMPANY LIMITED
Debts Owed to the Petitioning Creditor: Bt665,073,353.19
Planner: Premire Planner Company Limited
Date of Court Acceptance of the Petition: June 30, 2000
Date of Examining the Petition: August 18, 2000 at 13.00 A.M.
Court Order for Business Reorganization: August 18, 2000
Court Order for Appointment of the Planner: September 18, 2000
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Matichon Public Company Limited
and Siam Rath Company Limited: September 26, 2000
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Government Gazette: October 17,
2000
Deadline for Planner to submit the Business Reorganization Plan
to Official Receiver: January 17, 2001
Appointment Date of the Creditors' Meeting for Considering the
Plan: December 20, 2000 at 9.30 a.m. Convention Room No. 1103
11th Floor, Bangkok Insurance Building, South Sathorn
The Meeting had a special resolution accepting the
Reorganization Plan
Court issued an Order accepting the Plan: January 12, 2001 and
Appointed Premier Planner Company Limited to be as the
Administrative Planner
Announcement of Court Order for Accepting Business
Reorganization Plan in Matichon Public Company Limited and Siam
Rath Company Limited: February 5, 2001
Announcement of Court Order for Accepting Business
Reorganization Plan in Government Gazette: March 1, 2001
Appointment Date of the Meeting of Creditors for Amendment the
Plan on May 9, 2001 at 9.30 a.m. Convention Room No. 1103 11th
Floor, Bangkok Insurance Building, South Sathorn Road
Court had issued an Order on June 28, 2001 for Accepting the
Amendment of the Plan pursuant to Section 90/63
Announcement of Court Order for Accepting the Amendment of the
Plan in Matichon Public Company Limited and Siam Rath Company
Limited: July 9, 2001
Announcement of Court Order for Accepting the Amendment of the
Plan in Government Gazette : August 7, 2001
Contact: Mrs. Bang-orn Tel, 6792525 ext 112
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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