/raid1/www/Hosts/bankrupt/TCRAP_Public/011108.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
Thursday, November 8 2001, Vol. 4, No. 219
Headlines
A U S T R A L I A
HARRIS SCARFE: Acquired By Management Buyout Team
IOCOM LIMITED: AGM To Be Held On November 30
IOCOM LIMITED: Replies To ASX Query
JAMES HARDIE: Agrees To Sell Windows Business
NORMANDY MINING: AngloGold Posts Bidder`s Statement
NORMANDY MINING: Discloses CEO's Letter To Shareholders
PACIFIC DUNLOP: Posts Director's Interests Notices
WAIVCOM WORLDWIDE: Issues Administrator's Address To Holders
C H I N A & H O N G K O N G
BILLION CROWN: Winding Up Petition Slated For Hearing
CAPITAL FAITH: Winding Up Petition Set For Hearing
CONNECTED LINEN: Petition To Wind Up Scheduled
KELON ELECTRICAL: Posts Board Meeting Resolutions
NETEASE.COM: Changes Board Seat
PEARL ORIENTAL: Posts Info Re Rejected Offers, Creditor Bank
I N D O N E S I A
CITRA MARGA: Unibank Liquidation Forces Dealings With IBRA
SEMEN CIBINONG: Holcim Takes Control
J A P A N
FUJITSU LIMITED: Asks Subcontractors To Cut Software Costs
NAKAYAMA STEEL: Furnaces Scheduled For Closure Next September
NEC CORPORATION: Selling Two Telecom Equipment Operations
SOFTBANK CORP: Moody's Reviews Ba3 Debt Rating For Downgrade
SONY CORPORATION: Sees Rebound Due To Active Mobile Phone Div
TOSHIBA CORPORATION: 12,000 Employees Face Temporary Lay Offs
K O R E A
DAEWOO ELECTRONICS: Hanwha Group Buys Defense Parts Ops
HYUNDAI MERCHANT: KDB May Extend Bridge Loans
LG ELECTRONICS: US$50M Plant Opened In Mexico
M A L A Y S I A
ARTWRIGHT HOLDINGS: Eighth AGM To Be Held On November 29
EMICO HOLDINGS: Unit Enters Partnership Agreement With Wirat
GADEK CAPITAL: KLSE Grants Proposed Restructuring Approval
KIARA EMAS: Proposed Scheme Negotiations Ongoing
MECHMAR CORPORATION: Appoints Receivers, Managers To HUSB
MGR CORPORATION: KLSE OKs Extension Application
PICA (M) CORPORATION: Summary Judgment Hearing Adjourned
SELOGA HOLDINGS: Awaits KLSE's Time Extension Decision
SISTEM TELEVISYEN: SIBB Replaces AMBB As Independent Adviser
SPORTMA CORPORATION: Posts Estimated Defaulted Payments
TECHNO ASIA: Defaults Loan Interest Payments
P H I L I P P I N E S
BENPRES HOLDINGS: Shares At All-Time Low Due To Unit Debt Woes
NATIONAL POWER: Seeks US$1B For 2002 Operations
RFM CORPORATION: Orders Signing Of Cosmos Deal
SEACEM HOLDINGS: Poor Market Conditions Lead To Unit Shutdown
S I N G A P O R E
ASIA PULP: Moody's Downgrades Senior, Sub-Debt Stock Ratings
CAPITALAND LIMITED: Declares Shareholder's Interests Changes
CREATIVE TECHNOLOGIES: Shareholder's Interests Changes Listed
KOH BROTHERS: Unit Enters Into Venture With Shenyang Longhan
TUNG LOK: Announces Profit Warning
T H A I L A N D
MODERN HOME: Notifies Registration Book Closing Date
NAKORNTHAI STRIP: Court Delays Rehab Plan Consideration Date
SATHORNTHANI COMPANY: Business Reorganization Petition Filed
THAI ENGINE: Decreases Registered Capital
THAI TELEPHONE: Liquidates Subsidiary
- - - - - - - -
=================
A U S T R A L I A
=================
HARRIS SCARFE: Acquired By Management Buyout Team
-------------------------------------------------
Collapsed retailer Harris Scarfe Holdings Ltd. has been sold in
a management buyout deal which saves more than 1,700 jobs, the
Asian Wall Street Journal reported Wednesday, citing the
company's receivers and managers.
Ferrier Hodgson's John Spark and Bruce Carter said the sale will
secure the future of the 150-year-old department store group,
and see its head office and flagship store retained in Adelaide.
Investment bank Hindal Corporate helped negotiate the sale
following a restructuring of the retailer, which involved the
closure of six stores and the appointment of a new chief
executive, Robert Atkins.
Chief Executive Robert Atkins said he is confident about the 23-
store group's December quarter performance.
"We obviously set ourselves some targets post my arrival on July
9 and the business has traded in accordance with those
expectations. And that is despite the sad events of September
11.
"If I focus on the current trading, that is November, our
business is trading above last year. And given we are just
before a federal election, which has traditionally impacted
retail sales, we treat that pretty positively.
"There are a lot of reasons why Harris Scarfe got itself into
difficulties, but the reality is those 23 stores we now have all
trade profitably and form the cornerstone of the future of
Harris Scarfe.
"We're very much going to focus on the consolidation of business
in the next 12 months. During that 12 months we'll have an
opportunity to have a serious think about how we take the
business into its next phase," Atkins told Dow Jones Newswires
in an interview.
The company was placed in receivership April 6 with accumulated
debts of A$160 million.
IOCOM LIMITED: AGM To Be Held On November 30
--------------------------------------------
Iocom Limited announced that the Annual General Meeting of Iocom
Limited (ABN 80 085 905 997), (the Company), will be held on 30
November 2001 at Level 1, 44 Mountain St, Ultimo, NSW, 2007 at
2.00pm.
ORDINARY BUSINESS:
The ordinary Business of the meeting is to consider, and, if
thought fit, to pass the following resolutions as ordinary
resolutions.
1. ADOPTION OF FINANCIAL ACCOUNTS
That the financial statements of the Company, together with the
Directors Report for the year ended 30 June 2001 be adopted as
published in the Annual Report.
2. RE-ELECTION OF SCOTT BROWN
That Mr Scott Brown be re-elected as a Director of the Company.
3. RE-ELECTION OF ROBERT BIANCARDI
That Mr Robert Biancardi be re-elected as a Director of the
Company.
4. ISSUE OF OPTIONS TO ROBERT BIANCARDI
That the Company issue to Mr Robert Biancardi or his nominee
400,000 Options to subscribe to ordinary shares in the Company
which may be exercised at an exercise price of $0.10 at any time
prior to the expiry of five years from the anniversary date of
his appointment.
5. RATIFICATION OF 3,571,430 SHARE PLACEMENT
That the issue of 3,571,430 shares to raise $500,000 in April
2001 be ratified.
6. GENERAL BUSINESS
Any other business that may be brought forward in accordance
with the Company's Constitution.
IOCOM LIMITED: Replies To ASX Query
-----------------------------------
Iocom Limited posted below its reply to the Australian Stock
Exchange (ASX) query regarding Appendix 4C of the Company's
Quarterly Report on Wednesday, 31 October 2001, (the
Appendix C"), and to the Company's announcements dated 21 June
2001 and 13 September 2001 (the Announcements):
1. The Company believes that there will be sufficient cash to
fund activities during the December 2001 quarter. The following
factors should be taken into account in assessing the Company's
position:
a. The September Quarter included costs associated with
relocating the Company and subsequent downtime, and reprinting
stationery; and
b. The net operating cashflow for the December quarter, if a
loss, is expected to significantly lower than the net operating
cashflow loss reported in the September quarter.
2. The Company expects that any cashflow losses from the
December 2001 quarter forward will be significantly less than
that reported in the Appendix 4C for the September 2001 quarter.
The Company is taking steps to ensure additional capital can be
raised if needed.
3. There were several one-off expenses, including the costs
associated with relocating premises and redundancies, which were
paid within the first quarter. The Company's actual revenues
fell below expected revenues during September, primarily as a
result of disruption as a result of relocation. The financial
benefits of relocation are realized in the second and subsequent
quarters.
4. The Company became aware of the extent of the September
result in October.
5. The Board is currently in preliminary and formative
negotiations with interested parties, discussing various
opportunities including that of a strategic merger.
6. The company has complied with listing rule 3.1, and is not
aware of any matter that should currently be disclosed at this
time.
7. The Company believes its financial condition is such that,
providing there are no unforeseen events, it can meet its stated
objectives and ongoing compliance with listing rule 12.2.
JAMES HARDIE: Agrees To Sell Windows Business
---------------------------------------------
James Hardie Industries N.V. announced Wednesday that it has
entered into an agreement to sell its shares in James Hardie
Windows Pty Limited to Crescent Capital Partners Limited, which
is preparing an MBO structure to own and operate the company.
The sale will yield cash proceeds of A$15 million payable at
closing, which is in excess of the carrying value in James
Hardie's accounts. The closing is expected to occur on 30
November, 2001 and is subject to normal and usual conditions.
James Hardie Windows is one of the largest national window
manufacturers and distributors in Australia and is the only
Australian manufacturer of louvers. The business manufactures
and sells a full range of aluminum and wood windows to the
Australian residential housing sector.
The company's aluminum and wood windows are marketed in
Australia under the brands Trendy(TM), Framex(TM) and
Ouantum(TM). Its louvers are marketed under the brand names
Breezway(TM), Palmair(TM) and NACO(TM) in Australia and in
international markets.
The company's windows are manufactured in NSW, Victoria,
Queensland, South Australia, Western Australia and the ACT. The
business employs about 580 people.
James Hardie's Chief Executive Officer, Peter Macdonald said,
"The sale of Windows reflects our focus on the significant
growth opportunities for our proprietary fiber cement technology
around the world."
NORMANDY MINING: AngloGold Posts Bidder`s Statement
---------------------------------------------------
AngloGold Limited's Offer Document and Bidder's Statement
setting out the rationale and detail of the company's offer to
acquire Normandy Mining Limited has been posted to Normandy
shareholders.
AngloGold announced its intention to make an offer to acquire
Normandy Mining on 5 September 2001 on the basis of 2.15
AngloGold shares for every 100 Normandy shares.
In his letter in the Bidder's Statement, AngloGold's Chairman
and CEO, Bobby Godsell, said the offer for Normandy created
value in five ways.
Mr Godsell said the offer:
* represented a significant premium;
* gave shareholders exposure to a high dividend pay out policy;
* enabled participation in cost saving synergies;
* gave participation in the value created by the consolidation
of ownership and management of key assets; and
* gave shareholders ownership in the world's first truly global
gold company.
NORMANDY MINING: Discloses CEO's Letter To Shareholders
-------------------------------------------------------
Normandy Mining Limited disclosed R Champion de Crespigny's,
Chairman and Chief Executive Officer of the Company, letter to
shareholders:
ANGLOGOLD'S OFFER
Normandy shareholders outside the USA and Canada will receive a
copy of AngloGold's offer document in connection with its
takeover offer for Normandy.
The Normandy Board has not yet made any recommendation in
relation to the offer.
WHAT YOU NEED TO DO
You should do nothing in relation to AngloGold's offer. Wait
until Normandy Directors have finalized their review of the
offer and you have received the Normandy response document
containing the Director's recommendation on whether or not to
accept the offer. You will have plenty of time to deal with
AngloGold's offer after receiving the Normandy response with its
recommendation.
U.S. AND CANADIAN SHAREHOLDERS
AngloGold must wait for its offer document to receive US
Securities and Exchange Commission (SEC) registration and
Canadian regulatory approvals before it can sent it to Normandy
shareholders in the United States and Canada. AngloGold has
received Australian regulatory approval to send the offer
document to US and Canadian shareholders later than the date it
is sent to shareholders outside those countries. The AngloGold
offer must remain open for at least one month after the offer
has been sent to all Normandy shareholders.
NORMANDY'S RESPONSE DOCUMENT (CONTAINING THE DIRECTOR'S
RECOMMENDATION)
As matters currently stand Normandy believes it is most
appropriate to wait until all Normandy shareholders have the
AngloGold offer document sent to them before it sends its
response document. Normandy has approval from the Australian
Securities and Investment Commission to send its response
document to shareholders up to 15 days after all shareholders
have received AngloGold's offer documents.
ANGLOGOLD'S OFFER IS STILL CONDITIONAL
AngloGold's offer is subject to a number of conditions being
satisfied including US SEC registration of the offer document,
Australian FIRB approval, 50.1 percent minimum acceptance,
AngloGold shareholder approval and other government and
regulatory approvals.
By accepting the AngloGold offer while it is still subject to
conditions, you lose the ability to sell your shares for a
higher price on-market or accept any higher offer which may be
made by an alternate bidder. You will also only receive the
consideration from AngloGold for your Normandy shares if the
AngloGold offer becomes unconditional, which would appear to be
some time away.
The Normandy Board will keep shareholders informed of further
developments in the offer process.
We would also like to take this opportunity to invite you to our
Annual General Meeting presentation between Melbourne and
Sydney. This year the presentation is being held in Melbourne at
10.00am on Friday 16 November 2001 at the Melbourne Exhibition
Center, 2 Clarendon Street, South Bank. We look forward to
seeing you there if it is possible.
PACIFIC DUNLOP: Posts Director's Interests Notices
--------------------------------------------------
Pacific Dunlop Limited posted these notices:
NOTICE OF DIRECTOR'S INTERESTS
Section 205G of the Corporations Law
INITIAL NOTICE
Name of Director Dr Edward Desmond Tweddell
Name of Company Pacific Dunlop Limited
ACN 004 085 330
Date of Appointment 26/10/2001
"I have a relevant interest in the following securities of the
company or a related body corporate:
TYPE OF SECURITY: Fully paid ordinary shares
NUMBER OF SECURITIES: 30,000
CIRCUMSTANCES GIVING RISE TO RELEVANT INTEREST:
Held beneficially in my own name
NUMBER OF SECURITIES: 100,000
CIRCUMSTANCES GIVING RISE TO RELEVANT INTEREST:
Held beneficially in Hebuirn Superannuation Fund (Trustees ED &
CS Tweddell)
NUMBER OF SECURITIES: 130,000
"I have an interest in the following contracts to which I am a
party or under which I am entitled to a benefit that confer a
right to call for or deliver shares in, debentures of, or
interests in a collective investment scheme made available by,
the company or a related body corporate: Nil"
DATE: 02/11/2001
NOTICE OF DIRECTOR'S INTERESTS
Section 205G of the Corporations Law
INITIAL NOTICE
Name of Director Peter Leslie Barnes
Name of Company Pacific Dunlop Limited
ACN 004 085 330
Date of Appointment 26/10/2001
"I have a relevant interest in the following securities of the
company or a related body corporate:
TYPE OF SECURITY: Fully paid ordinary shares
NUMBER OF SECURITIES: 15,000
CIRCUMSTANCES GIVING RISE TO RELEVANT INTEREST:
Held beneficially in own name
"I have an interest in the following contracts to which I am a
party or under which I am entitled to a benefit that confer a
right to call for or deliver shares in, debentures of, or
interests in a collective investment scheme made available by,
the company or a related body corporate: Nil"
DATE: 01/11/2001
NOTICE OF DIRECTOR'S INTERESTS
Section 205G of the Corporations Law
INITIAL NOTICE
Name of Director Stanley Phillip Gold
Name of Company Pacific Dunlop Limited
ACN 004 085 330
Date of Appointment 26/10/2001
"I have a relevant interest in the following securities of the
company or a related body corporate:
TYPE OF SECURITY: Fully paid ordinary shares
NUMBER OF SECURITIES: 122,144,301
CIRCUMSTANCES GIVING RISE TO RELEVANT INTEREST:
Held beneficially in my own name (100 shares) and by virtue of
a 10 percent economic interest in the 122,144,201 shares in the
Company held by Trefoll International III, SPRL of which I am
also a director.
"I have an interest in the following contracts to which I am a
party or under which I am entitled to a benefit that confer a
right to call for or deliver shares in, debentures of, or
interests in a collective investment scheme made available by,
the company or related bodies corporate: Nil"
DATE: 01/11/2001
NOTICE OF DIRECTOR'S INTERESTS
Section 205G of the Corporations Law
INITIAL NOTICE
Name of Director Michael J McConnell
Name of Company Pacific Dunlop Limited
ACN 004 085 330
Date of Appointment 26/10/2001
"I have a relevant interest in the following securities of the
company or a related body corporate:
TYPE OF SECURITY: Fully paid ordinary shares
NUMBER OF SECURITIES: 100
CIRCUMSTANCES GIVING RISE TO RELEVANT INTEREST:
Held beneficially in my own name
"I have an interest in the following contracts to which I am a
party or under which I am entitled to a benefit that confer a
right to call for or deliver shares in, debentures of, or
interests in a collective investment scheme made available by,
the company or a related body corporate: Nil"
DATE: 31/10/2001
WAIVCOM WORLDWIDE: Issues Administrator's Address To Holders
------------------------------------------------------------
Waivcom Worldwide Limited issued Deed Administrator N Brooke's
address to shareholders on sale of listed shell:
"Further to my update on 7 August 2001, I advise that the Deed
Administrators of Waivcom Worldwide Limited and Verona Capital
Pty Ltd (Verona) have made substantial progress towards
completion of a number of preconditions in the Heads Of
Agreement that were required to be completed by 3 November 2001.
"In view of the progress to date, the Deed Administrators and
Verona have agreed, pursuant to the terms of the Heads Of
Agreement, to extend the date for completion of the
preconditions to 3 January 2002.
"A proposal to the ASX and shareholders by Verona is not likely
to be made until after the preconditions have been satisfied. If
accepted, Verona's proposal that may result in resumption of
trading in the company's shares may not be achieved until mid-
2002.
"If you have any queries please refer to our website
www.pwcrecovery.com through the "Businesses Under Management"
link or contact Leonie Bernard of my office on 03 8603 3997."
================================
C H I N A & H O N G K O N G
================================
BILLION CROWN: Winding Up Petition Slated For Hearing
-----------------------------------------------------
The petition to wind up Billion Crown Construction Engineering
Limited will be heard before the High Court of Hong Kong on
January 9, 2002 at 9:30 am.
The petition was filed with the court on September 11, 2001 by
Chan Yuen Sing of Room 1329, Tsz Sum House, Tin Tsz Estate, Tin
Shui Wai, New Territories, Hong Kong.
CAPITAL FAITH: Winding Up Petition Set For Hearing
--------------------------------------------------
The petition to wind up Capital Faith Development Limited is
scheduled to be heard before the High Court of Hong Kong on
January 9, 20032 at 9:30 am. The petition was filed with the
court on September 10, 2001 by Cheung Siu Keung of Block 1,
7/F., 53 Shek Pai Wan Road, Hong Kong.
CONNECTED LINEN: Petition To Wind Up Scheduled
----------------------------------------------
The petition to wind up CONNECTED LINEN COTTON LIMITED is
scheduled for hearing before the High Court of Hong Kong on
January 16, 2002 at 9:30 am.
The petition was filed with the court on September 25, 2001 by
Bank of China (Hong Kong) Limited, (the successor corporation to
Sin Hua Bank pursuant to Bank of China (Hong Kong) Limited
(Merger) Ordinance, of Bank of China Tower, No. 1 Garden Road,
Central, Hong Kong.
KELON ELECTRICAL: Posts Board Meeting Resolutions
-------------------------------------------------
A meeting of the board of directors (the Board) of Guangdong
Kelon Electrical Holdings Company Limited (the Company),
convened by Xu Tie Feng, chairman of the Company, was held on 2
November 2001 in Hong Kong. Seven out of the nine directors
attended the meeting. A quorum was present throughout the
meeting.
The matters considered at the meeting:
1. The Board considered the sale and purchase agreement relating
to 20.64 percent interest in the issued share capital of the
Company
(the Acquisition) entered into between Greencool Enterprise
Development Company Limited (Greencool) as purchaser and
Guangdong Kelon (Rongsheng) Group Company Limited (GKGas vendor
on 29 October 2001 and resolved that the Acquisition is in the
best interests of the Company. The directors expressed their
support for the Acquisition taking into account their duties to
act in the best interests of the Company and its shareholders
taken as a whole.
2. Having considered the recent proposal of Greencool to change
the composition of the Board and matters discussed in paragraph
1 above, Xu Tie Feng, Qu Yunbo, Yu Chor Woon, Carol and Cai
Shier tendered their resignations as executive directors, but
such resignations shall not take effect until the day upon which
the appointments of the proposed new directors, names of which
are set out in paragraph 3 below, as directors of the Company,
have been approved by the shareholders of the Company at an
Extraordinary General Meeting of the Company (EGM).
Li Bao Guo, Dr. Philip Yu Hong Wong, Li Kwok Wing, Meocre and
Zhang Xusheng have also tendered their resignations as non-
executive directors on the basis that they do not know the new
single largest shareholder (i.e. Greencool) and the proposed new
directors and they do not have a complete understanding of
Greencool's and the proposed new directors' future plans in
relation to the Company, but such resignations shall not take
effect until the day upon which the appointments of the proposed
new directors (names of which are set out in paragraph 3 below)
as directors of the Company, have been approved by the
shareholders of the Company at the EGM.
3. Li Zhen Hua, an executive director of the Company, put
forward the following list of persons, proposed by Greencool to
be appointed as directors of the Company. The Board resolved to
convene an EGM to give shareholders an opportunity to consider
and approve such appointments of the proposed new directors. The
persons proposed by Greencool to act as directors of the Company
are:
i) Gu Chu Jun - executive director;
ii) Liu Cong Meng - executive director;
iii) Zhang Hong - executive director;
iv) Fang Zhi Guo - executive director;
v) Yan You Song - executive director;
vi) Chan Pei Cheong, Andy - independent non-executive
director;
vii) Yu Xiaoyang - independent non-executive director; and
viii) Chen Wen Hui - independent non-executive director.
If the foregoing persons are approved by shareholders of the
Company at the EGM to be directors of the Company, their term of
office will commence on the day upon which the resolutions to
appoint them as directors of the Company are passed at the EGM.
4. Following from the Acquisition, the Board resolved to obtain
the shareholders' approval at the EGM to amend the Company's
Articles of Association in view of the changes in the
shareholdings of the Company pursuant to the Acquisition. It is
proposed that the existing Article 3.5 of the Company's Articles
of Association be replaced by the following:
"As approved by the China Securities Regulatory Commission
and/or any such other applicable authority in the People's
Republic of China, the Company's entire issued share capital is
992,006,563 ordinary shares, comprising of 204,775,755 domestic
shares held by Greencool Enterprise Development Company Limited,
representing 20.64 percent of the entire issued share capital;
133,140,000 domestic shares held by Guangdong Kelon (Rongsheng)
Group Company Limited, representing 13.42 percent of the entire
issued share capital; 84,501,000 domestic shares held by
employees of the Company, representing 8.52 percent of the
entire issued share capital; 459,589,808 H shares, representing
46.33 percent of the entire issued share capital; and
110,000,000 A shares, representing 11.09 percent of the entire
issued share capital."
The proposed amendments to the Company's Articles of Association
also requires the approval of the Ministry of Foreign Trade and
Economic Cooperation and is subject to completion of the
registration procedures with the China Securities Depository and
Clearing Corporation Limited, Shenzhen Branch for the transfer
of 20.64 percent interest in the Company from GKG to Greencool.
5. The Board considered and approved the Notice of EGM and for
the EGM to be held at the Meeting Room, Dormitory Region, No.13
Ronggang Road, Ronggui, Shunde, Guangdong Province, the People's
Republic of China on 23 December 2001.
NETEASE.COM: Changes Board Seat
-------------------------------
NetEase.com, Inc. (Nasdaq:NTESE), a leading Internet technology
provider in China, announced Monday that one of its directors,
Mr. Lawrence J. Smith, has resigned effective November 5, 2001
and that the Board has elected Mr. John Yu Leung Lau to fill the
vacancy.
Mr. Smith was originally nominated and elected to the Board in
October 2000 in accordance with the contractual rights of an
affiliate of The News Corporation Limited, which is entitled to
nominate one director and to cause certain shareholders to vote
in favor of that nominee. Mr. Smith resigned from the Board in
conjunction with his resignation from his positions with News
Corporation and its affiliates.
John Lau is currently Chief Financial Officer of STAR Group
Limited, News Corporation's Asian satellite television and
multi-media business. He oversees all financial matters of STAR,
including corporate accounting, management and financial
reporting, internal audits, and treasury and tax functions. He
was previously Senior Vice President, Finance at STAR.
Prior to joining STAR in December 1998, Mr. Lau was the Chief
Financial Officer of San Miguel Brewing International Ltd, with
responsibilities covering that company's financial operations
throughout Asia-Pacific.
Mr. Lau graduated from Brigham Young University in Utah in
August 1988 with a Master's degree in Accountancy and
Information Systems and a Bachelor of Science degree in
Accounting. He is a current member of the California Institute
of Certified Public Accountants.
Commenting on this change, Ted Sun, the company's acting Chief
Executive Officer and a director, said, "We thank Mr. Smith for
all his hard work on the NetEase.com Board of Directors and wish
him well in his future endeavors. We are also pleased to welcome
Mr. Lau to the Board."
PEARL ORIENTAL: Posts Info Re Rejected Offers, Creditor Bank
------------------------------------------------------------
Pearl Oriental Holdings Limited (the Company) has confirmed with
one of the Company's creditor banks (the Bank) that Pearl
Century Limited's receivers have declined all four tender offers
received in respect to the sale of "Genesis"that is charged to
be in favor of the Bank. "Genesis", owned by Pearl Century
Limited, is a property located at 23 Severn Road, The Peak, Hong
Kong. The total indebtedness due to the Bank as of 31 October
2001 was approximately HK$326 million (the "Indebtedness").
The Company will endeavor to continue discussions with those
interested potential purchasers with a view to achieving a
better offer price for the disposal of Genesis. The disposal of
Genesis, if concluded, will constitute a notifiable transaction
for the Company under the Listing Rules and may be subject to
Rule 4 of the Takeovers Code.
The Company was informed by its registered office in Bermuda on
24 October 2001 (Hong Kong time) that a statutory demand letter
dated 18 October 2001 (which is the same as the one mentioned in
the Company's announcement dated 19 October 2001), was received
at the Company's registered office on 23 October 2001 (Bermuda
time).
According to legal advice received by the Company, the period
after which the Company will be deemed under the Companies
Ordinance to be unable to pay its debts will expire 21 days
after the Statutory Demands (referred to in the Company's
announcements of 17 and 19 October 2001) arrived at the
registered office of the Company in Bermuda. In this respect,
the 21-day period will expire on 13 November 2001. As at the
date of this announcement, the Bank has not indicated to the
Company what it plans to do following the expiry of the 21-day
period. The Company will, in turn, consider its position once
the Bank has decided on its next course of action.
For the time being, the Company continues efforts to resolve the
issue relating to the Indebtedness, including soliciting and
continuing discussions with interested potential buyers of
Genesis including introducing potential investors to the Bank.
Two potential purchasers are in discussions with Mr Wong Kwan in
respect of a possible sale of his stake in the Company, to
explore various scenarios to unwind the Indebtedness owing to
the Bank.
Given the aforesaid on-going activities and negotiations, the
directors will continue to maintain discussions and cooperate
with the Bank to achieve the Bank's withdrawal or the holding in
abeyance, of any proceedings in respect to the Statutory
Demands.
The Company will make further announcements if there is any
material development in respect of (i) the possible sale of Mr
Wong's stake in the Company, (ii) the sale of Genesis and (iii)
the related Indebtedness.
=================
I N D O N E S I A
=================
CITRA MARGA: Unibank Liquidation Forces Dealings With IBRA
----------------------------------------------------------
PT Citra Marga Nusaphala Persada (CMNP) said it was not able to
dispose of US$28 million in notes before publicly listed Bank
Unibank was liquidated late on October 29, AsiaPulse reported
yesterday, citing CMNP Director Adityawarman.
He said CMNP decided to sell the notes after hearing financial
difficulty faced by the bank and a delay in the issuance of its
financial report for 2000.
"Talks with both prospective buyers and Unibank were intensive
and CMNP had urged for immediate conclusion of a deal by
offering incentives," Adityawarman said.
Now CMNP has to deal with the Indonesian Bank Restructuring
Agency (IBRA), which took over the task of settling all
financial matters with the banks' clients.
The Negotiable Certificate of Deposit includes US$10 million
maturing on May 9, 2002 and US$18 million to fall due a day
after.
CMNP had hoped to use the funds to repay its debt in bonds
maturing in February next year.
SEMEN CIBINONG: Holcim Takes Control
------------------------------------
The shareholder of PT Semen Cibinong Tbk has agreed Swiss cement
firm Holcim Ltd will become the company's controlling 75 percent
stake shareholder in the framework of restructuring its US$1,2
billion debt, Bisnis Indonesia reported Wednesday.
The company's Senior Manager of Media Relations, Nico Wattimena
said that Holcim would be the controlling shareholder once it
raises its 12,5 percent stake to 75 percent.
The previous controlling shareholder of SMCB was PT Tirtamas
Majutama.
Holcim Ltd. has played a big role in settling the Company's debt
restructuring since June 2001.
=========
J A P A N
=========
FUJITSU LIMITED: Asks Subcontractors To Cut Software Costs
----------------------------------------------------------
Fujitsu Limited has asked 300 computer system development
subcontractors to decrease service costs by a standard 10
percent from the second half to March, PRnewsAsia reported on
Tuesday.
In return for granting Fujitsu's request, the Japanese firm is
offering to share its know-how on improving systems efficiency
with the subcontractors.
This move comes at the heels of Fujitsu's announcement barely a
week ago that it posted a group loss of Y174 billion during the
first half.
NAKAYAMA STEEL: Furnaces Scheduled For Closure Next September
-------------------------------------------------------------
Ailing Nakayama Steel Works Ltd., Japan's seventh largest steel-
maker, declared plans to shut down two of its blast furnaces as
well as a sintering furnace in September next year as part of
its restructuring measures, according to Kyodo News on
Wednesday.
For the last twelve months, earnings by the Japanese steel
maker, also involved in engineering, precision casting and real
estate operations, have decreased more than 59 percent, with
only a 2 percent dividend increase, according to an analysis by
Wrights Investors Service.
NEC CORPORATION: Selling Two Telecom Equipment Operations
---------------------------------------------------------
In order to slash costs as well as boost flexibility, NEC
Corporation announced it would sell the manufacturing operations
of two of its domestic units, News On Japan reported on Monday.
The company confirmed that it was indeed negotiating with
several electronics manufacturing services (EMS) providers for
the sale, but no details as to their identity were disclosed.
Both operations posted combined sales of Y110 billion, and had
more than 1,200 employees.
The recent move is part of NEC's continuing restructuring plan
to trim its workforce and consolidate its production facilities.
The company recently announced that it posted a group operating
loss of Y55.3 billion for the first half ended September 30, and
it also forecast a consolidated net loss of Y150 billion for the
business year to next March.
SOFTBANK CORP: Moody's Reviews Ba3 Debt Rating For Downgrade
------------------------------------------------------------
Moody's Investors Service has placed Softbank Corp's Ba3 senior
unsecured long-term debt ratings under review for possible
downgrade.
The rating review reflects Moody's growing concern on Softbank's
profitability and downward pressure on the market value of its
investment portfolio.
Softbank is currently expecting to report operating losses of
Y11 billion and net losses of Y55 billion, including Y45 billion
of revaluation losses on securities holdings for the interim
period ended September 30, 2001.
In the review, the rating agency will assess the company's
ability to cope with the current difficult operating
environment; the possible impact on future financial
fundamentals; and its strategy to mitigate earnings volatility.
Softbank Corp., headquartered in Tokyo, is a leading global
provider of various internet-related businesses.
SONY CORPORATION: Sees Rebound Due To Active Mobile Phone Div
-------------------------------------------------------------
Sony Corporation expects its earnings to rebound in the second
half of the business year following an anticipated improvement
in the performance of its mobile phone division, the Japan Times
reported yesterday, quoting Sony President Kunitake Ando.
Mr. Ando jokingly said, "We have completed squeezing the pus
out of our mobile phone business, and can therefore expect a
respectable (earnings) figure from that division".
For the first half through September 30, Sony's mobile phone
division alone posted losses of Y45 billion. For its half-year
group earnings report, it posted net losses of Y43.26 billion.
Previously, following an announcement that it has posted a net
loss of Y13 billion for the quarter ended September 30, the
Japanese firm announced cost cutting measures that included the
closing down of 48 business units and finding ways to scale down
procurement costs by 15 percent.
TOSHIBA CORPORATION: 12,000 Employees Face Temporary Lay Offs
-------------------------------------------------------------
Prompted by a steadily decreasing demand for semiconductors,
Toshiba Corporation has announced plans to temporarily lay off
some 12,000 workers in its semiconductor division for several
days this November and December in a bid to slash costs and
inventory, News on Japan reported on November 7.
The affected workers will be asked to stay home for two to four
days in late November, and take a 10 percent pay cut. This move
aims to save the company some Y120 million. Toshiba is expects
an operating loss of Y150 billion for its semiconductor division
in the fiscal year ending in March 2002.
Toshiba's labor union officials have not yet been available for
comment on the matter.
=========
K O R E A
=========
DAEWOO ELECTRONICS: Hanwha Group Buys Defense Parts Ops
-------------------------------------------------------
Daewoo Electronics Co. has sold its weapons parts manufacturing
operations to Hanwha Group for W27 billion, the Asian Wall
Street Journal reported November 6.
The Daewoo business, which produces electronic components for
various military purposes, will then become a division of Hanwha
Corporation, also a Hanwha Group affiliate.
Daewoo Electronics has also revealed plans to pick a priority
buyer for its core operations, which deals with electric home
appliances. Home appliances take up about 55 percent of the
company's total sales, media products at 40 percent and the
remaining 5 percent earned by non-core businesses such as
defense and non-semiconductor activities.
Daewoo creditors, which own most of the company, have decided to
put up its core operations for sale. KPMG International is the
sale's lead manager.
Following the dissolution of the Daewoo Group, Daewoo
Electronics was one of the conglomerate's 12 affiliates
creditors chose to save through a debt workout program in August
1999.
HYUNDAI MERCHANT: KDB May Extend Bridge Loans
---------------------------------------------
Ailing Hyundai Merchant Marine Co. might be granted bridge loans
by state-controlled Korea Development Bank (KDB), according to
the Asian Wall Street Journal on Tuesday, citing a KDB official.
The KDB official provided no further details, particularly as to
the size of the loans under consideration. Hyundai Merchant has
offered no information regarding its possible loan request.
The Hyundai Group shipping unit is trying to repay its debt,
which stood at W6.3 trillion at the end June. Repayments of some
W250 billion in corporate bonds are due in November.
KDB underwrote W200 billion in bonds issued by Hyundai Merchant
Marine on Monday.
LG ELECTRONICS: US$50M Plant Opened In Mexico
---------------------------------------------
LG Electronics has opened a new US$50 million refrigerator
factory in Nuevo Leon, Mexico that will produce refrigerators
for the Mexican and Latin American markets.
The Asian Wall Street Journal reported Tuesday that the plant
would initially employ 300 people. The company plans to invest
another US50 million in the plant in the year 2005.
In November of last year, LG creditors demanded the company
seek a business partner to raise funds to reduce its rising
debt. Barely a month ago LG sold off 6.03 million shares in
Dacom, representing around 25 percent of its listed stock, to
Credit Suisse First Boston (CSFB) for W107 billion.
===============
M A L A Y S I A
===============
ARTWRIGHT HOLDINGS: Eighth AGM To Be Held On November 29
-------------------------------------------------------
Artwright Holdings Berhad announced that the Eighth Annual
General Meeting of the Company will be held at Hotel Istana,
Baiduri & Berlian Courtroom, No 73 Jalan Raja Chulan, 50200
Kuala Lumpur on Thursday, 29th November, 2001 at 12.00 noon.
Resolutions:
1. To receive and adopt the Audited Financial Statements of the
Company for the year ended 30th June, 2001 and the Directors'
and Auditors' Reports thereon. Resolution 1
2. To re-elect Yong Chew Keat who retires by rotation in
accordance with Article 80 of the Company's Articles of
Association and being eligible has offered himself for re-
election.
3. To approve the payment of Directors' fees for the year ended
30th June, 2001.
4. To re-appoint Messrs Deloitte KassimChan (formerly known as
Kassim Chan & Co) as the Company's Auditors and to authorize the
Directors to fix their remuneration.
5. As Special Business:
To consider and if thought fit, to pass the following
resolution, with or without modifications, as an Ordinary
Resolution:
AUTHORITY UNDER SECTION 132D
OF THE COMPANIES ACT, 1965
FOR THE DIRECTORS TO ISSUE SHARES
"THAT pursuant to Section 132D of the Companies Act, 1965, and
subject to the approvals of the relevant governmental and/or
regulatory authorities, the Directors be and are hereby
empowered to issue new shares in the Company at any time, at
such price, upon such terms and conditions and for such purposes
and to such person or persons whomsoever as the Directors may,
in their absolute discretion, deem fit, provided that the
aggregate number of shares issued pursuant to this resolution in
any one financial year does not exceed 10 percent of the total
issued share capital of the Company for the time being AND THAT
the Directors be and are also empowered to obtain the approval
from the Kuala Lumpur Stock Exchange for the listing of and
quotation for the additional shares so issued AND THAT such
authority shall continue in force until the conclusion of the
next Annual General Meeting of the Company."
6. To transact any other business of which due notice shall
have been given in accordance with the Companies Act, 1965.
EMICO HOLDINGS: Unit Enters Partnership Agreement With Wirat
------------------------------------------------------------
The Board of Directors of Emico Holdings Berhad (Emico or
Company) announced that on 30 October 2001, Emico Marketing Sdn
Bhd (EMSB), a wholly owned subsidiary of Emico, entered into a
Partnership Agreement (PA) with Wirat Cheevasrirunggrueng
(Wirat) to incorporate a company called Emico Marketing
(Thailand) Ltd, Partnership (Emico (T)).
It is agreed by both parties that the shareholding of Emico (T)
shall be:
% Initial (Ringgit holding capital equivalent)
EMSB 49% Bt490,000.00 RM43,120.00
Wirat (hold on
trust for EMSB) 11% Bt110,000.00 RM9,680.00
Wirat 40% Bt400,000.00 RM35,211.00
------- ----------------------
100% Bt1,000,000
==== =============
THE COST OF INVESTMENT AND PROFIT SHARING
The initial capital of Emico (T) shall be Baht 1,000,000. EMSB
shall contribute for 49 percent of the capital for Baht 490,000
(RM43,120.00) and pay for and on behalf of Wirat the 11 percent
of the capital at Baht 110,000 (RM9,680.00). Wirat shall signed
a trust deed for EMSB for the 11 percent capital. The balance 40
percent or Baht 400,000 shall be paid up by Wirat. The profit
sharing ratio shall be Emico 60 percent and Wirat 40 percent.
BUSINESS TO BE CARRIED OUT BY EMICO (T)
Emico (T) will principally be involved in the trading of plastic
consumable products. It has secured the contract to supply
plastic products to Sino Pacific Ltd, a licensee of Wrigley
(Malaysia) Sdn Bhd. For a start, Emico (T) will sourced the
products from a Thailand manufacturer and supply to Sino Pacific
Ltd.
RATIONALE FOR THE PROPOSED PARTNERSHIP
The proposed joint venture will enable Emico to make inroad into
Thailand especially in plastic consumable market. In view of the
implementation of AFTA in year 2003, the proposed JV would
enhance Emico's competitive edge. Furthermore, Emico is also
exploring the possibilities of exporting our existing products
into Thailand and vice versa.
FINANCIAL EFFECTS OF THE PROPOSAL
The Proposed JV is not expected to have any financial effect on
NTA and earning per share for the financial year ending 31
December 2001 as the company is expected to start operation only
in November 2001.
SOURCE OF FUNDS
The total investment of Bt600,000 (RM52,800.00) is expected to
be financed from internally generated funds.
APPROVALS REQUIRED
The Proposed joint venture does not require the approval of any
relevant authorities except the Bank Negara Malaysia. The
foreign exchange department of BNM granted its approval on 15
Oct 2001.
INTEREST OF DIRECTORS AND SUBSTANTIAL SHAREHOLDERS AND PERSONS
CONNECTED TO THEM.
None of the Directors or substantial shareholders of Emico and
persons connected to them, have any interest, direct and
indirect in the Proposed joint venture.
Copy of the joint venture agreement can be inspected at the
following address on normal working hours for a period of 2
weeks from the date of this announcement.
Registered Address: 51-21-A, Menara BHL Bank, Jalan Sultan Ahmad
Shah, 10050 Penang.
Emico also announced that the Kuala Lumpur Stock Exchange has
approved an extension of 2 weeks from 23 October 2001 to 6
November 2001 to enable Emico to submit its Proposed Plan of
Restructuring to Securities Commission.
GADEK CAPITAL: KLSE Grants Proposed Restructuring Approval
----------------------------------------------------------
The Board of Gadek Capital Berhad (Gadek Capital or the Company)
announced that the Kuala Lumpur Stock Exchange (KLSE) has vide
its letter dated 31 October 2001 approved:
* the Proposed Restructuring, (namely the Proposed Bonus
Issue, Proposed Placement and Proposed Offer for Sale); and
* KLSE's consent for a shorter announcement period to one (1)
clear market day between the announcement of the book closing
date for the Proposed Bonus Issue and the book closing date.
However, the KLSE has not approved any other proposals that may
be contemplated by Gadek Capital (prior to the implementation of
the Proposed Placement and Proposed Offer for Sale) with regards
to the application for exemption from issuing a circular to
shareholder.
The "Proposed Restructuring" refers to the following:
* Proposed acquisition of the entire issued and paid-up
capital of Khuan Choo Realty Sdn Bhd comprising 16,650,010
ordinary shares of RM1.00 each from Datuk Lim Siew Choon, Sebaya
Murni Sdn Bhd, Capt (R) Noziah Bt. Dato' Hj Osman, Zaheera Bt
Ahmad, Major (Rtd) Ismail bin Ahmad and Lim Choon Hai for a
purchase consideration of RM87,891,467 to be satisfied by way of
cash;
* Proposed acquisition of approximately 69.12 percent equity
interest of Bukit Rimau Development Sdn Bhd (BRD) comprising
3,455,997 ordinary shares of RM1.00 each from Asas Unggul Sdn
Bhd for a purchase consideration of RM49,113,513.20 to be
satisfied by way of cash and the proposed assignment to Gadek
Capital of the advances made to BRD by a director and the
holding company of BRD totaling RM30,886,486.80 for a cash
consideration of the same amount ; and
* Proposed acquisition of the entire issued and paid-up
capital of Domain Resources Sdn Bhd comprising 1,000,000
ordinary shares of RM1.00 each from Hillary Frank Fredericks
(for Che King Tow), Wee Beng Aun and Che Kiong Seong for a
purchase consideration of RM38,000,000 to be satisfied by way of
cash.
* Proposed bonus issue of 174,176,464 new ordinary shares of
RM1.00 each to be issued and credited as fully paid-up to the
then shareholders of the Company on the basis of one (1) new
ordinary share for every one (1) existing ordinary share held in
the Company (Proposed Bonus Issue);
* Proposed placement of up to 104,158,000 existing ordinary
shares of RM1.00 each to investors at a placement price to be
negotiated with the placees (Proposed Placement);
* Proposed offer for sale of 122,280,000 existing ordinary
shares of RM1.00 each to Directors, employees, to the public and
Bumiputera investors to be nominated by the Ministry of
International Trade and Industry and/or Malton Corporation Sdn
Bhd at a price to be determined later (Proposed Offer for Sale);
and
* Proposed Increase in the Authorised Share Capital.
KIARA EMAS: Proposed Scheme Negotiations Ongoing
------------------------------------------------
On behalf of Kiara Emas Asia Industries Berhad (the Company),
Arab-Malaysian Merchant Bank Berhad announced that the parties
are engaged in on-going negotiations leading to the finalization
of the details of the Proposed Scheme.
Previously the Company announced on 18 October 2001 that a
Memorandum of Understanding had been entered into with Excellent
Avenue Sdn. Bhd. in relation to a Proposed Scheme to regularize
the financial condition of the Company and its subsidiaries,
Discussions with bank creditors are in-progress towards an
amicable settlement of all the outstanding indebtedness of the
Company and its subsidiaries as an integral part of the Proposed
Scheme.
A firm of public accountants has been appointed to carry out an
independent financial due diligence audit on the Company and its
subsidiaries. In addition, a firm of solicitors has been
instructed to carry out a legal due diligence on the Company and
its subsidiaries.
MECHMAR CORPORATION: Appoints Receivers, Managers To HUSB
----------------------------------------------------------
Mechmar Corporation (Malaysia) Berhad announced that Arthur
Andersen & Co had served a notice on HandiMart (USJ) Sdn Bhd
(HUSB). Arthur Andersen has been appointed as Receivers and
Managers of HUSB effective 31 October 2001 under the terms of a
debenture dated 8 June 2000, given to BSN Commercial Bank
(Malaysia) Berhad, and vested in Affin Bank Berhad.
The Receivers and Managers have not taken over the management of
the company pending negotiations between the company and the
bank to settle the outstanding loan by installments.
Details of HUSB:
Date of Incorporation: 20.10.1997
Directors: Tan Keng Boon and Leong Oi Mooi
Shareholders: MechMar Corporation (Malaysia) Berhad (100 percent
owned)
Authorized Capital: RM1, 000,000.00
Paid Up Capital: RM 1,000,000.00
Net Book Value of HUSB as at 30.6.2001 is (RM 2,958,238).
Details of events leading to the Appointment:
Defaulted in payment of installments due on principal following
cashflow constraint with the current economic downturn. This has
been announced to KLSE under Default in Payment. The last
announcement was made on 31.10.2001.
Financial and operational impact on the aforesaid Appointment on
MechMar Group - not material
Expected losses arising from the Appointment - No material
effect.
Steps taken by the Company in respect of the aforesaid
Appointment - the Receivers and Managers are mediating to revise
the repayment schedule on the outstanding amount between the
bank and HUSB.
Kindly be advised that the trading in the shares of the Company
has been suspended with effect from 9.00 a.m., Tuesday, 6
November 2001 until further notice.
MGR CORPORATION: KLSE OKs Extension Application
-----------------------------------------------
MGR Corporation Berhad announced that on 1 November, 2001 the
Kuala Lumpur Stock Exchange approved the Company's application
for an extension from 21 November 2001 to 28 February 2002 to
enable the Company to obtain all the necessary approvals from
the regulatory authorities for its regularization plan.
Profile
The Company (MGR) was engaged in sawn timber trading when it
began operations in 1985. It later expanded into the sale of
timber logs. In 1989, MGR ventured into downstream activities
beginning with wood moldings. In mid-1996, MGR branched into the
downstream processing of plain plywood and subsequently
supplemented its furniture operation by moving into the
manufacturing of doors.
On 4 August 2000, the financial institution lenders of the
Company and its subsidiaries, Parakaya Plywood Sdn Bhd and
Kimanis Bay Timbers Sdn Bhd, entered into a debt restructuring
agreement with the Company, Parakaya, Kimanis and the Company's
major shareholder and Managing Director, Mr Loi Lung Kiong, to
restructure the outstanding bank borrowings of the Company,
Parakaya and Kimanis.
On 18 December 2000, the Company was asked to revise the
restructuring scheme taking into account issues raised by the
SC. The revised scheme was expected to be submitted tentatively
by end of May 2001.
On 5 April 2001, however, MGR's corporate adviser, CIMB resigned
and consequently, withdrew the proposal to the SC on 11 April
2001. Presently, MGR is looking at various options on its
corporate restructuring to be crystallized by the agreed May
deadline. Thereafter, a new adviser will be appointed to
finalize the scheme.
PICA (M) CORPORATION: Summary Judgment Hearing Adjourned
--------------------------------------------------------
The Board of Directors of Pica (M) Corporation Berhad (Pica or
the Company) announced that on 29 October 2001 the hearing
regarding the Plaintiffs' application for summary judgment
pursuant to Order 14 of the Rules of the High Court was
adjourned to a later date. Pica has requested the suit be
dismissed.
SELOGA HOLDINGS: Awaits KLSE's Time Extension Decision
------------------------------------------------------
The Board of Directors of Seloga Holdings Berhad (SHB or the
Company) revealed that the Company is looking into various
proposals to regularize the Company's financial position and
will make the necessary announcement upon finalization of the
corporate proposals.
As announced by SHB on 3rd September 2001, the Company is
required to announce its detailed plan to regularize its
financial condition by 1st November 2001.
On 17 October 2001, the Company applied to the KLSE for a
further extension of another three (3) months from 1 November
2001 to 1 February 2002 for the Company to regularize its
financial plan.
The Company is awaiting a decision from the KLSE on granting SHB
an extension of time.
A further announcement will be made upon receipt of the decision
of the KLSE.
SISTEM TELEVISYEN: SIBB Replaces AMBB As Independent Adviser
------------------------------------------------------------
On behalf of Sistem Televisyen Malaysia Berhad (TV3), Arab-
Malaysian Merchant Bank Berhad (Arab-Malaysian) announced that
Southern Investment Bank Berhad (SIBB), formerly known as
Perdana Merchant Bankers Berhad, has been appointed the
Independent Adviser to the minority shareholders of TV3. SIBB
will oversee the Corporate Proposals in place of Affin Merchant
Bank Berhad (AMBB), formerly known as Perwira Affin Merchant
Bank Berhad.
SPORTMA CORPORATION: Posts Estimated Defaulted Payments
-------------------------------------------------------
Sportma Corporation Berhad (Special Administrators Appointed)
(Sportma) provided an estimate of its default in payment as of
31 October 2001, as found at
http://www.bankrupt.com/misc/Sportma-default.xls
The total default by Sportma on principal sum plus interest as
at 31 October 2001 amounted to RM208,738,041.93. The default
payment is in respect of revolving credit facilities, trade
financing and overdraft utilized by Sportma.
Chemitech Industries Sdn Bhd, a wholly-owned subsidiary of
Sportma had as at 31 October 2001, defaulted on RM603,780.98,
made up of a principal sum of RM470,000.00 plus RM133,780.98 in
interest, in respect of its term loan.
TECHNO ASIA: Defaults Loan Interest Payments
--------------------------------------------
Techno Asia Holdings Berhad (Special Administrators Appointed)
announced that the Company and its subsidiaries, namely Mount
Austin Properties Sdn. Bhd. (Special Administrators Appointed),
Prima Moulds Manufacturing Sdn. Bhd. (Special Administrators
Appointed), Prima Moulds Sdn. Bhd. and Ganda Energy Holdings,
Inc. had defaulted in payments of its loan interest and
principal sum owing to several financial institutions. The
outstanding amounts as at 30 September, 2001 are:
Loan and Hire-Purchase Total (RM)
Principal (RM) Interest (RM)
TECASIA 462,301,796 213,725,471 676,027,267
Group 558,787,444 248,937,966 807,725,410
Reasons for Default
The default arose as a result of the financial and economic
crisis in the region in 1997. Property sales and collections,
which contributed significantly to the Group's profit, had been
adversely affected. Consequently, the Group has not been able to
service its credit facilities.
Pursuant to Section 24 of the Pengurusan Danaharta Nasional
Berhad (Amendment) Act, 2000, Mr. Lim Tian Huat and Mr. Chew
Cheng Leong of Messrs. Arthur Andersen & Co. were appointed
Special Administrators over the Company and a subsidiary
company, Prima Moulds Manufacturing Sdn. Bhd. on 2 February,
2001. Both Mr. Lim Tian Huat and Mr. Chew Cheng Leong were
subsequently appointed Special Administrators of the following
subsidiary companies of the Company on 30 April, 2001:
1. Mount Austin Properties Sdn. Bhd. ;
2. Cempaka Sepakat Sdn. Bhd.;
3. Ganda Edible Oils Sdn. Bhd.;
4. Litang Plantations Sdn. Bhd.;
5. Wisma Dindings Sdn. Bhd.;
6. Ganda Plantations (Perak) Sdn. Bhd.; and
7. Techno Asia Venture Capital Sdn. Bhd.
Measures Taken to Address the Default
TECASIA is considered as an "affected listed issuer" pursuant to
PN4/2001.
On 6 August, 2001, the Special Administrators, on behalf of
TECASIA, entered into a conditional Memorandum of Understanding
(MOU) with Semai Warnasari Sdn. Bhd. and Dr. Yu Kuan Chon, with
the intention of setting the key areas of understanding on a
corporate restructuring exercise (the Restructuring Scheme).
On 7 September, 2001, the Special Administrators have on behalf
of TECASIA, signed a Principal Agreement with the abovementioned
parties with the intention of implementing the Restructuring
Scheme pending the finalization and approval of the Workout
Proposal.
The Restructuring Scheme is intended to form a part of the
Workout Proposal which will be subject to an examination by an
Independent Advisor, who will review the reasonableness of the
Workout Proposal taking into consideration the interests of all
creditors and shareholders.
The parties to the MOU and other relevant parties are finalizing
the details of the Workout Proposal of the Company and its
subsidiaries, where relevant, which will be announced in due
course.
On 19 October, 2001, TECASIA had applied to the KLSE for an
extension of time to release the Requisite Announcement and is
now pending the KLSE's approval.
Implications in respect of the Default in Payments
As Special Administrators have been appointed to TECASIA and the
abovementioned subsidiaries pursuant to Section 41 of the
Pengurusan Danaharta Nasional Berhad (Amendment) Act, 2000, a
twelve (12) month moratorium is in effect and all legal actions
initiated against TECASIA and other affected subsidiaries, will
be stayed. Further, any petition for winding-up, or any
appointment of a receiver, receiver and manager or provisional
liquidator cannot proceed.
=====================
P H I L I P P I N E S
=====================
BENPRES HOLDINGS: Shares At All-Time Low Due To Unit Debt Woes
--------------------------------------------------------------
Weighed down by debt problems plaguing two of its units namely
Maynilad Water Services Inc. and Bayan Telecommunications Inc.,
Benpres Holdings Corporation shares were at an all-time low
during late trading, PrnewsAsia reported yesterday.
As of 11:28am Tuesday, Benpres was down P0.05 or 10.42 percent
at 0.43 on turnover of 4.32 million shares.
BayanTel creditors early this week refused to pardon part of its
US$477 million debt. The Benpres telecommunications unit is
seeking to restructure its debt by getting a partial condonation
from creditors, stretching maturities and swapping shares for
debt.
Maynilad Water was also granted permission to up its tariff but
has yet to secure a US$350 million term loan to finance its
cash-strapped operations.
Following these developments, analysts speculate that Benpres
would likely post a net loss for the third quarter.
NATIONAL POWER: Seeks US$1B For 2002 Operations
-----------------------------------------------
In order for the state-controlled National Power Corporation to
finance its operations for next year, it needs to raise a total
of at least US$1 billion, PRNewsAsia reports November 6, quoting
Finance Secretary Jose Isidro Camacho.
Camacho said that the needed amount might possibly be raised by
the national government through borrowings. The government
previously announced plans to borrow some US$2.9 billion from
creditors, both foreign and official, for its budget set for
next year.
RFM CORPORATION: Orders Signing Of Cosmos Deal
----------------------------------------------
RFM Corporation's Board of Directors has ordered the agreement
be signed for the sale of its controlling stake in its bottling
unit, Cosmos Bottling Corporation, to San Miguel Corporation,
according to a Wednesday PRNewsAsia report.
RFM Vice President Ramon Lopez said, "The approval was based on
an adjusted enterprise value of P14 billion for 100 percent of
Cosmos, which translates to about P6.045 per Cosmos share".
The beleaguered food conglomerate VP further added, "As earlier
disclosed, all shareholders can also expect a declaration of
cash dividend equivalent to all the excess cash of Cosmos prior
to the deal closing and transfer of ownership."
SEACEM HOLDINGS: Poor Market Conditions Lead To Unit Shutdown
-------------------------------------------------------------
Southeast Asia Cement Holdings Inc (Seacem) announced that its
unit, Lloyds Richfield Industrial Corp, decided to suspend its
cement manufacturing operations, effective Monday, due to
worsening market conditions, PrnewsAsia reported on Tuesday.
In an official disclosure, Seacem said "This temporary measure
arises from a strategic review of market conditions, costs and
capacity utilization, and is aimed at rationalizing costs and
maximizing competitiveness."
However, Seacem added that its cement-manufacturing unit will
keep trading but will utilize alternative cement products from
other producers.
Seacem personnel affected by the suspension will be laid off for
a maximum period of six months.
=================
S I N G A P O R E
=================
ASIA PULP: Moody's Downgrades Senior, Sub-Debt Stock Ratings
------------------------------------------------------------
Moody's Investor Service downgraded Tuesday the senior unsecured
rating of Asia Pulp & Paper Co Ltd and its subsidiaries (APP
Group) to Ca from Caa3, and the sub-debt & preferred stock
rating to C from Ca.
The rating downgrade reflects the rating agency's concern that
creditor interests will be further impaired by the lack of
progress on the debt restructuring program that was put in place
in March 2001 when the APP Group announced a debt standstill.
Moody's says that the recent resignation of Arthur Anderson (the
holding company's auditors) will further delay the availability
of audited financial information, and in turn affect the
progress of negotiations on debt restructuring. The rating
downgrade also reflects the deteriorated expected recovery rate
and the apparent uncertainty in resolving creditors' claims
under Indonesian law.
Debts affected:
APP International Finance Company B.V. Secured Global Notes,
guaranteed by Asia Pulp & Paper Co Ltd and PT Lontar Papyrus
Pulp & Paper Mills, and Euro MTN Program, guaranteed by Asia
Pulp & Paper Co Ltd, Caa3 to Ca
APP Finance (IX) Ltd Global Notes, guaranteed by Asia Pulp &
Paper Co Ltd, Caa3 to Ca
APP Finance (VI) Mauritius Ltd Convertible LYONS, guaranteed by
Asia Pulp & Paper Co Ltd, Caa3 to Ca
APP Finance (VII) Mauritius Ltd Convertible Global Bonds,
guaranteed by Asia Pulp & Paper Co Ltd, Caa3 to Ca
APP International Finance (Mauritius) Ltd, Global MTN Program,
guaranteed by Asia Pulp & Paper Co Ltd, Caa3 to Ca
PT Indah Kiat Pulp & Paper Corp Secured Euro Notes, Caa3 to Ca
Indah Kiat International Finance Co B.V. Secured Global Notes,
guaranteed by PT Indah Kiat Pulp & Paper Corp, Caa3 to Ca
Indah Kiat Finance Mauritius Ltd Global Bonds, guaranteed by PT
Indah Kiat Pulp & Paper Corp, Caa3 to Ca
PT Indah Kiat Pulp & Paper Corp Domestic Currency Issuer Rating,
Caa3 to Ca
Tjiwi Kimia Finance Mauritius Limited Global Notes, guaranteed
by PT Pabrik Kertas Tjiwi Kimia, Caa3 to Ca
Pindo Deli Finance Mauritius Ltd Global Bonds, guaranteed by PT
Pindo Deli Pulp & Paper Mills, Caa3 to Ca
APP China Group Ltd Senior Unsecured Notes, guaranteed by Asia
Pulp & Paper Co Ltd, Caa3 to Ca
APP Global Finance (III) Cayman Ltd Euro Notes, backed by
preference shares, Ca to C
APP Finance (II) Mauritius Ltd Preferred Stock Rating,
guaranteed by Asia Pulp & Paper Co Ltd on a subordinated basis,
Ca to C
Asia Pulp & Paper Company Limited, headquartered in Singapore,
is one of the world's largest paper products companies, with
pulp, paper, tissue and packaging production facilities in
Indonesia and China.
Its rated operating subsidiaries, mainly located in Indonesia,
are PT Indah Kiat Pulp & Paper Corp, PT Pabrik Kertas Tjiwi
Kimia, PT Pindo Deli Pulp & Paper Mills, and PT Lontar Papyrus
Pulp & Paper Mills. APP China Group Limited, is the immediate
holding company of the China operation.
CAPITALAND LIMITED: Declares Shareholder's Interests Changes
------------------------------------------------------------
CaptiLand Limited announced on Tuesday that it had issued a
notice of changes in substantial shareholder Singapore
Technologies Pte Ltd's Deemed Interests. A portion of the
announcement detailing the changes:
Notice Of Changes In Substantial Shareholder's Deemed Interests
Name of substantial shareholder: Singapore Technologies Pte Ltd
Date of notice to company: November 6, 2001
Date of change of interest: September 25, 2001
Name of registered holder: CDP: Vickers Ballas & Co 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: 250,000
Percent of issued share capital: 0.01
Amount of consideration
per share excluding
brokerage, GST,
stamp duties, clearing fee: S$0.413
No. of shares held before change: 250,500
Percent of issued share capital: 0.01
No. of shares held after change: 500
Percent of issued share capital: 0.00002
Holdings of Substantial Shareholder including direct and deemed
interest
Deemed Direct
No. of shares held before change: 329,675,338 1,197,123,933
Percent of issued share capital: 13.1 47.55
No. of shares held after change: 329,425,338 1,197,123,933
Percent of issued share capital: 13.09 47.55
Total shares: 329,425,338 1,197,123,933
CREATIVE TECHNOLOGIES: Shareholder's Interests Changes Listed
-------------------------------------------------------------
Creative Technology yesterday announced changes in substantial
shareholder Merrill Lynch & Co. Incorporated's Deemed Interests.
The changes are:
Notice Of Changes In Substantial Shareholder's Deemed Interests
Name of substantial shareholder: Merrill Lynch & Co., Inc.
Date of notice to company: November 6, 2001
Date of change of shareholding: November 1, 2001
Name of registered holder: Citibank (Singapore)
Circumstance giving rise to the change: Others
Please specify details: Open market sale and purchase
Shares held in the name of registered holder
No. of shares of the change: 15,000
Percent of issued share capital: 0.021
Amount of consideration
per share excluding
brokerage, GST,
stamp duties, clearing fee: SGD 11.11 and SGD 11.25
No. of shares held before change: 28,500
Percent of issued share capital: 0.039
No. of shares held after change: 43,500
Percent of issued share capital: 0.06
Holdings of Substantial Shareholder including direct and deemed
interest
Deemed Direct
No. of shares held before change: 4,214,058
Percent of issued share capital: 5.824
No. of shares held after change: 4,229,058
Percent of issued share capital: 5.845
Total shares:
No. of Warrants
No. of Options
No. of Rights
No. of Indirect Interest
KOH BROTHERS: Unit Enters Into Venture With Shenyang Longhan
------------------------------------------------------------
The Directors of Koh Brothers Group Limited refers to the
announcement made by its listed subsidiary G & W Group
(Holdings) Limited (G&W) on November 6, 2001 in relation to the
joint venture agreement (JVA) entered into by G&W Industrial
(China) Pte Ltd, a wholly-owned subsidiary of G&W, for the
purposes of setting up a joint venture company in Shenyang, PRC
to engage, amongst others, in property development in PRC.
The first proposed project of the JV Company is to undertake the
development of a piece of land of approximately 60,000 square
meters in Shenyang, PRC. Further information on the JVA and the
Project are set out in the Announcement.
Under the JVA, the parties thereto have agreed that upon the
completion of the Project, Koh Brothers Property Management
(Shenyang) Co., Ltd, a wholly owned subsidiary of the Company,
shall have a first right of refusal to be appointed to manage
the completed Project on terms to be agreed.
Save as disclosed above, none of the Director or substantial
shareholder of the Company has any interest, direct or indirect,
in the proposed transactions contemplated under the JVA.
TUNG LOK: Announces Profit Warning
----------------------------------
The Board of Directors of Tung Lok Restaurants Ltd announced
that in view of the sharper-than-expected economic slowdown, the
Company is expected to incur a loss for the full financial year
ending December 31, 2001.
As disclosed in the release of the first half-year results on
September 28, 2001, the Board said that profits were lowered in
the period due to start-up and running-in costs incurred by
three new outlets. These higher costs continued into the second
half as a result of the addition of five new outlets.
The Board had also said in its commentary on the current-year
performance, "Given the difficult current economic conditions,
the Board does not expect the performance of the second half
year to be better than that of the first half."
The economic conditions in Singapore have taken a more drastic
turn for the worse following the tragic events of September 11,
2001. Recent official projections by the Government have also
indicated that Singapore is having its worst recession since
independence in 1965.
Accordingly, the Company deems it fit to issue a profit warning
ahead of the closure of the full year results.
===============
T H A I L A N D
===============
MODERN HOME: Notifies Registration Book Closing Date
----------------------------------------------------
As part of the Business Rehabilitation Plan (the Plan) of Modern
Home Development Plc. (the Company), which was approved by the
Central Bankruptcy Court (the Court) on October 27, 2001, the
capital reduction will be implemented.
Due to the capital decrease process, the Company informed that
the share register book shall be closed as from on 12.00 hours
on November 15, 2001 until the completion of the process, so as
there will be new issuance of shares during that period.
Capital Decrease
The Decrease of the Company's paid-up capital from 62,010,000
ordinary shares with a par value of Bt10 to 62,010 ordinary
shares with a par value of Bt10. The Company will combine the
1,000 shares to I share. In case of any fraction exceeding or
equivalent to 0.5 will be entitle to receive I ordinary share.
In the event that the number of shares after the capital
reduction is not in accordance with the conditions, the Company
shall consider:
1. If the number of shares is less than 62,010 shares, the
different shall be allocated to The "Asset Management
Corporation (AMC)"
2. If the number of shares is greater than 62,010 shares, the
different shall be deducted from the number of shares that
shall be allocated to The "Asset Management Corporation (AMC)"
Please note that the existing share certificates shall not be
recalled after the approval from the Ministry of Commerce. The
recall shall be taken place after the second capital reduction.
NAKORNTHAI STRIP: Court Delays Rehab Plan Consideration Date
------------------------------------------------------------
Maharaj Planner Company Limited (Maharaj Planner), in its
capacity as the Planner of Nakornthai Strip Mill Public Company
Limited (NSM), informed that The Central Bankruptcy Court
(Court) has postponed the hearing date, and consideration of the
Company's Rehabilitation Plan, to December 4, 2001, at the
Court.
Maharaj Planner also announced that NSM holiday in year 2002,
which is different to the Stock Exchange of Thailand's holiday,
is Monday 30th December, 2002 "New Year's Eve".
SATHORNTHANI COMPANY: Business Reorganization Petition Filed
------------------------------------------------------------
The Petition for Business Reorganization of Sathornthani Company
Limited (DEBTOR), engaged in developing the real estate for
sales and rentals, was filed in the Central Bankruptcy Court:
Black Case Number 576/2543
Red Case Number 637/2543
Petitioner: SATHORNTHANI COMPANY LIMITED
Debts Owed to the Petitioning Creditor: Bt1,644,510,482.45
Planner: Sathornthani Company Limited
Date of Court Acceptance of the Petition: July 28, 2000
Date of Examining the Petition: August 28, 2000 at 9.00 A.M.
Court Order for Business Reorganization and Appointment of
Planner: August 28, 2000
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Matichon Public Company Limited
and Siam Rath Company Limited: September 4, 2000
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Government Gazette: September 21,
2000
Deadline for Planner to submit the Business Reorganization Plan
to Official Receiver: December 21, 2000
Planner postponed the Date to submit the Business Reorganization
Plan to Official Receiver #1st: January 21, 2001
Planner postponed the Date to submit the Business Reorganization
Plan to Official Receiver #2nd: February 21, 2001
The Meeting of Creditors had passed a special resolution
accepted the plan
Court Order for Accepting the reorganization plan: April 18,
2001 and appointed Sathornthani Company Limited to be the Plan
Administrator
Announcement of Court Order for Accepting the Reorganization
Plan in Matichon Public Company Limited and Siam Rath Company
Limited: May 14, 2001
Announcement of Court Order for Accepting the Reorganization
Plan in Government Gazette: June 19, 2001
Contact: Miss Phataree Tel, 6792525 ext 143
THAI ENGINE: Decreases Registered Capital
-----------------------------------------
Churchill Pryce Planner Company Limited, the Plan Administrator
of Thai Engine Manufacturing Public Company Limited, informed
that the Company's registered and paid up capital has been
reduced to Bt3.75 million or 0.375 million shares 22nd October
2001.
On 20th August 2001, the Central Bankruptcy Court ordered
approval of the capital reduction and amendment of Memorandum of
Association of Thai Engine Manufacturing Public Company Limited
(the Company) as an implementation of the Business
Reorganization Plan, which the Court approved on 20th December
2000.
THAI TELEPHONE: Liquidates Subsidiary
-------------------------------------
Thai Telephone & Telecommunication Public Company Limited
notified that the Company's Board of Director's Meeting No.
8/2001 held on November 6, 2001 has adopted these resolutions:
1. To acquire the entire business, including the assets,
liabilities and employees of TT&T Value Added Service Company
Limited, which is the Company's subsidiary in which the Company
holds 66.66 percent of the paid-up share capital, as well as to
enter into any agreements related to the creditors and debtors
of
TT&T Value Added Service Company Limited and other persons as
necessary for the acquisition of such business after the
Company's creditors have granted approval for the Company to
acquire the said entire business and the Court has ordered the
cancellation of the reorganization of the Company.
2. To dissolve TT&T Value Added Service Company Limited after
the Company has acquired the entire business of TT&T Value Added
Service Company Limited.
3. To apply for approval of the Company's creditors and TT&T
VAS' creditors to acquire the entire business of TT&T Value
Added Service Company Limited and to dissolve TT&T Value Added
Service Company Limited pursuant to 1 and 2 above.
The transactions pursuant to 1 and 2 above shall be proceeded
after the Company has been granted the approval from the
Company's and TT&T VAS' creditors, as well as the Company's
Shareholders' Meeting.
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.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
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*** End of Transmission ***