/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/011130.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, November 30 2001, Vol. 4, No. 234 Headlines A U S T R A L I A ANACONDA NICKEL: Appoints Johnston As Executive Director ANACONDA NICKEL: Posts AGM Results ANSETT AUSTRALIA: Government OKs Buyer's Support Package AUSTRIM NYLEX: Discloses Chairman Moule's Address To Holders BREATHE GROUP: Shareholders Approve AGM Resolutions NORMANDY MINING: AngloGold's Increased Offer Acknowledged PRESLITE GROUP: Issues Case Profile C H I N A & H O N G K O N G ART ENOUGH: Winding Up Petition Hearing Set CHINA GARDEN: Winding Up Petition To Be Heard COUNTIFAIR COMPANY: Faces Winding Up Petition FIRST PACIFIC: Enters Sale, Purchase Agreement With Nakornchuen GUANGDONG INTERNATIONAL: Hotel Sale Slated For December HEROTIME ENGINEERING: Winding Up Petition Slated For Hearing KIRK WOOD: Faces Winding Up Petition MANDARIN RESOURCES: Subscription Agreement Conditions Completed PONDFORD LIMITED: Winding Up Petition To Be Heard SEAWOOD GROUP: Winding Up Petition Set For Hearing I N D O N E S I A ASTRA: DebtTraders Assigns 80% Safety Rating On Bond Due '05 INDOSIAR VISUAL: Sold For Rp775 Per Share SEMEN GRESIK: Commissioners In Agreement To Set Up Holding J A P A N BRIDGESTONE CORPORATION: Plans Increase In Film Production KINSHO CORPORATION: Seeks Y20B Loan Waiver KINSHO CORPORATION: Mitsubishi Tokyo To Waive Y36.5B In Loans KOKUSAI SECURITIES: 'BBB-' Rating Still On CreditWatch NIIGATA ENGINEERING: Bankruptcy Sparks Fears, Sell Offs * Japan's Life Insurers Post Profit Plunges * * Panel Proposes Bankruptcy Law Change To Protect Bondholders* K O R E A DAEWOO MOTOR: GM Takeover Gaining Momentum DAEWOO MOTOR: GM May Not Acquire Daewoo Sales Unit HYNIX SEMICON: Strategic Tie-Ups Essential For Rehabilitation HYNIX SEMICON: Committee Considers Reform Plan Revision HYUNDAI ENGINEERING: Bailout Plan Reaffirmed By Creditors SEOULBANK: Seeks Government's Planned Stake Sale Approval M A L A Y S I A ARTWRIGHT HOLDINGS: SC Grants Proposed Exemption Request ESPRIT GROUP: Seeks Shareholders' Proposed Amendments Approval JOHOR CORPORATION: Posts Unit's Defaulted Payment Updates KEMAYAN CORPORATION: KLSE Requires Detailed Progress Reports MEASUREX CORPORATION: Updates Significant Litigation Status PANCARAN IKRAB: FIC OKs Proposed Restructuring Scheme Revisions PLANTATION & DEVELOPMENT: Obtains FIC's Proposed Scheme Approval REPCO HOLDINGS: KLSE Gives Requisite Announcement Time Extension SAMLING FIBRE: Defaults US$ Banking, Credit Facilities Payments SELOGA HOLDINGS: KLSE Approves Extension Application SUNWAY HOLDINGS: Debt Plan Approved P H I L I P P I N E S METRO PACIFIC: Open To Management Buyout METRO PACIFIC: Cutting Debt Burden New Focus METRO PACIFIC: Keeping Ailing Shipping Unit Stake NATIONAL POWER: Germany's RWE Keen On Acquiring Napocor Assets NATIONAL POWER: Government Prepares New Reinsurance Deal S I N G A P O R E CAPITALAND LIMITED: Unit Converts SingMall Into Private Trust FHTK HOLDINGS: Posts Changes In Shareholder's Interest PANPAC MEDIA: Euro RSCG Files Lawsuit Against Unit ZingAsia T H A I L A N D NEP REALTY: BBL Reached Settlement Re Loans SARIN PROPERTY: Files Petition For Business Reorganization THAI RUNG: Bankrupt, Under Absolute Receivership - - - - - - - - ================= A U S T R A L I A ================= ANACONDA NICKEL: Appoints Johnston As Executive Director -------------------------------------------------------- Anaconda Nickel Limited announced the appointment of Peter Johnston to the Board as an Executive Director. Johnston recently accepted an appointment as Anacondas Chief Executive Officer following the retirement of Andrew Forrest on 16th November 2001. The Board expects Johnston to take up his Executive duties early in December. ANACONDA NICKEL: Posts AGM Results ---------------------------------- Anaconda Nickel Limited (Anaconda) advised that all resolutions to be put at the Annual General Meeting of security holders held Wednesday were passed on a show of hands. In accordance with section 251AA(2) of the Corporations Law listed below are the required details of the proxies received for each of these resolutions. RESOLUTION 2(a) ELECTION OF MR WILLY STROTHOTTE AS DIRECTOR I. Proxies in favor of resolution 15,992,205 II. Proxies against the resolution 493,599 III. Proxies abstaining from voting 37,690 IV. Discretionary 758,596 Total proxies received 17,282,090 RESOLUTION 2(b) ELECTION OF MR IVAN GLASENBERG AS DIRECTOR I. Proxies in favor of resolution 13,520,854 II. Proxies against the resolution 458,599 III. Proxies abstaining from voting 39,790 IV. Discretionary 3,262,847 Total proxies received 17,282,090 RESOLUTION 2(c) ELECTION OF MR BRIAN BEAMISH AS DIRECTOR I. Proxies in favor of resolution 16,005,642 II. Proxies against the resolution 471,099 III. Proxies abstaining from voting 37,690 IV. Discretionary 767,659 Total proxies received 17,282,090 RESOLUTION 2(d) ELECTION OF MR ANDREW FORREST AS DIRECTOR I. Proxies in favor of resolution 16,070,519 II. Proxies against the resolution 475,285 III. Proxies abstain from voting 37,690 IV. Discretionary 698,596 Total proxies received 17,282,090 RESOLUTION 2(d) ELECTION OF MR CHRIS LINEGAR AS DIRECTOR I. Proxies in favor of resolution II. Proxies against the resolution III. Proxies abstaining from voting IV. Discretionary Total proxies received * This motion did not go to a vote as Mr Linegar informed the Board that he would not be seeking re-election. RESOLUTION 3.1 GRANT OF SERIES III OPTIONS TO MR ANDREW FORREST I. Proxies in favor of resolution 13,855,147 II. Proxies against the resolution 2,728,410 III. Proxies abstaining from voting 37,690 IV. Discretionary 660,843 Total proxies received 17,282,090 RESOLUTION 3.2 GRANT OF SERIES III OPTIONS TO MR MICHAEL MASTERMAN I. Proxies in favor of resolution 13,776,973 II. Proxies against the resolution 2,806,584 III. Proxies abstaining from voting 37,690 IV. Discretionary 660,843 Total proxies received 17,282,090 RESOLUTION 3.3 GRANT OF SERIES III OPTIONS TO MR LESLIE STEWART I. Proxies in favor of resolution 13,785,977 II. Proxies against the resolution 2,797,580 III. Proxies abstaining from voting 37,690 IV. Discretionary 660,843 Total proxies received 17,282,090 RESOLUTION 3.4 GRANT OF OPTIONS TO MR ANDREW FORREST I. Proxies in favor of resolution 13,289,982 II. Proxies against the resolution 3,179,575 III. Proxies abstaining from voting 37,690 IV. Discretionary 774,843 Total proxies received 17,282,090 RESOLUTION 4 AMENDMENT OF ARTICLE 26 OF THE COMPANY'S CONSTITUTION I. Proxies in favor of resolution 16,107,128 II. Proxies against the resolution 416,139 III. Proxies abstaining from voting 37,690 IV. Discretionary 721,133 Total proxies received 17,282,090 RESOLUTION 5 NON-EXECUTIVE DIRECTORS REMUNERATION I. Proxies in favor of resolution 15,639,251 II. Proxies against the resolution 920,316 III. Proxies abstaining from voting 37,690 IV. Discretionary 684,833 Total proxies received 17,282,090 ANSETT AUSTRALIA: Government OKs Buyer's Support Package -------------------------------------------------------- The government approved a final support package to help Australian businessmen Solomon Lew and Lindsay Fox buy collapsed carrier Ansett, Asian Wall Street Journal reported Tuesday citing Transport Minister John Anderson. According to Anderson, the government had met all of their "reasonable demands" and it was now up to the businessmen to decide whether they would push through with the buy plan. Ansett, the nation's second largest domestic airline before its collapse, was put into voluntary administration in mid- September. Fox, who owns a national transport company, and Lew, who once ran Australia's largest retail company, have offered 1.8 billion Australian dollars (US$940 million) for the airline. AUSTRIM NYLEX: Discloses Chairman Moule's Address To Holders ------------------------------------------------------------ Austrim Nylex Limited disclosed Chairman John Moule's address to shareholders: "The 2000-2001 financial year was very disappointing for Austrim Nylex especially the need to writedown the book valuations of a number of assets totaling $279 million, resulting in us reporting a Net Loss of $269 million. "From the start of the year, the group faced a range of challenges which adversely affected our business. They included the introduction of the Goods and Services Tax, a weakening Australian dollar, increasing costs of purchasing polymer and other imported materials, and a slowing economy, particularly in civil and residential building and the automotive industry. "Other factors affecting our result for the year included the costs associated with restructuring our operations. The group's debt position and the lack of retained profits has meant that the directors could not pay a final dividend for the year, nor the October interest payment on the Mandatory Converting Notes. "I would like to take a little time to explain the group's performance for the year. "As you can see from the slides, the factors I have referred to show our earnings before interest and tax falling 58 per cent from $63.2 million to $26 million, on a comparative basis. This EBIT comparison indicates the operating result excluding one-off items such as asset sales. "This slide shows the group's cashflow during the financial year and emphasizes the need to reduce debt and to tightly control capital expenditure and to divest non-core and underperforming assets. "When directors became aware of the problems earlier this calendar year and the entrenched new levels of business, we implemented a range of initiatives to identify those of our 36 businesses which could deliver profits and growth and those that should be divested or closed, "In February 2001, we appointed a new management team, led by a new Managing Director and Chief Executive, Mr Peter Crowley, who has extensive industrial experience in Australia and overseas. He quickly implemented a more streamlined business and accountability structure. "Mr Crowley will report later in the meeting on his progress implementing the changes required to get Austrim Nylex back on a solid footing. "As we are in the process of restructuring our operations, we expect a sustainable improvement in the long term, subject to economic conditions and to further costs to be incurred in rationalization. Accounting standards demand certainty in order to provide against restructuring costs so in addition to the charges known at 30 June 2001 we anticipate further charges against future results. "We continue to be confident that our earnings from our continuing businesses before bank interest, tax, depreciation and amortization (EBITDA) will reach $100 million in the 2001- 2002 financial year, with the prospect of greater improvements in the future as the benefits of restructuring flow through. After bank interest and borrowing costs, depreciation and amortization we anticipate our result for this year to be marginally below breakeven. "We are convinced the group, albeit with more short term pain to be suffered, operationally is turning the corner. We have the support of our banks and we are committed to aggressively reducing bank debt. Through concentrating on our strong businesses and shedding poor performers, Austrim Nylex will, we believe in a couple of years, post satisfactory results and pass them on to shareholders and noteholders. "I congratulate our staff, who have contributed considerable energy and remained focused on their jobs and not been distracted during what has been a very difficult period. "Mr Crowley will provide us with an update on how we are travelling at the moment and the status of our restructuring as Agenda Item 5 and we will then respond to your questions." BREATHE GROUP: Shareholders Approve AGM Resolutions --------------------------------------------------- Shareholders of Breathe Group Ltd (BRE) approved all three resolutions put before them at the Annual General Meeting held on 29 November 2001. The resolutions regarded: 1. The re-election of Mr Philip Cornish as a director of the company. 2. The re-election of Mr Martin Dawes as a director of the company. 3. The election of Mr Allan George as a director of the company. In late September, BRE entered into conditional contracts to sell the mobile telephony retail operations of BRE in Australia and New Zealand to Armeadon Pty Limited and Armeadon (NZ) Limited in an effort to stabilize the Company in the current difficult economic environment. NORMANDY MINING: AngloGold's Increased Offer Acknowledged ---------------------------------------------------------- Normandy Mining Limited (Normandy) acknowledged the announcement by AngloGold Limited (AngloGold) Thursday that AngloGold has increased its offer for Normandy by $0.20 cash per Normandy share. AngloGold's revised offer of 2.15 AngloGold shares per 100 Normandy shares plus $0.20 cash per share implies an offer price of $1.65 per Normandy share (based on last night's closing price of AngloGold's ADRs on the NYSE). The increase in the offer is subject to the approval of AngloGold shareholders in accordance with Johannesburg Securities Exchange requirements. The closing date of the revised offer is 27 December 2001. Response of the Normandy Board - DO NOTHING The Normandy Board will meet as soon as possible to consider its position. Shareholders should do nothing at the present time. PRESLITE GROUP: Issues Case Profile ----------------------------------- Territory : Australia Company Name : Preslite Group - AIV Holdings Australia Pty Ltd Lead Partner : Nick Brooke Case Manager : Mark Wlossak Date of Appointment: 7 February 2001 Normal Contact : Jeremy Bertram Contact Phone No : (03) 8603 6808 PwC Office Location : Melbourne PO Box : GPO Box 1331L Street Address : 215 Spring Street City : MELBOURNE State : VIC Postcode : 3000 DX : DX 77 Melbourne Phone : (03) 8603 1000 Fax : (03) 8603 6044 Appointor : Company directors Registered Office of company: 4-10 Hillwin St, Reservoir Vic Company No / CAN : 081 608 488 Type of Appointment : Liquidator Lead Partner - Full Name : Nicholas Brooke Second Partner - Full Name : David L McEvoy Case Information (Last Updated 26/11/2001 10:50:55 AM) First Creditors' Meeting Date : 20 December 2000 Time : 10:00am Address: Level 8, 215 Spring St Melbourne Proxy return date : 19 December 2000 Return time : 5:00pm Second Creditors' Meeting (or adjournment) Date : 6 February 2001 Time : 10.30 am Address : Level 8, 215 Spring Street, Melbourne Proxy return date : 5 February 2001 Return time : 5.00 pm Other Key Information Report as to Affairs received from directors: By letter dated 16 January 2001, the directors of AIV Holdings Australia Pty Ltd advised the Administrators that it is not commercially possible to separate the various assets, liabilities and associated claims between AIV Holdings Australia Pty Ltd, AIV Management Services Pty Ltd and Preslite Australia Pty Ltd. Given this, the directors have stated that the Report as to Affairs for the company will show nil balances in all categories. The Preslite Australia Pty Ltd report as to affairs is available on this web site. Dates of trading by insolvency practitioner: 13 December 2000 to 6 February 2001 under Voluntary Administration. From 6 February 2001 to current In Liquidation. Business sold/ceased trading: The liquidators ceased trading the business on 9 March 2001. The purchaser now operates the business. Job closure: AIV Holdings Australia is now in liquidation, operations have ceased and the liquidators are settling the affairs of the group. Background Information The Directors appointed Nick Brooke and David McEvoy of PricewaterhouseCoopers Voluntary Administrators on 13 December 2000. A circular to creditors of the company was sent out on 15 December 2000 and provides details of the Voluntary Administration process and the first creditors' meeting. The first creditors meeting was held on 20 December 2000. Copies of the minutes of the meeting are available on this web site. At the second meeting of creditors, held on 7 February 2001, the creditors resolved to place the company into liquidation. Copies of minutes of the meeting are available on this web site. The meeting was initially held on 6 February 2001 but was adjourned to the following day due to the absence of a quorum. Current status of assignment and actions required by creditors Details of claims by creditors should be forwarded for the attention of Jeremy Bertram, c/- PricewaterhouseCoopers, Level 4, 215 Spring Street, Melbourne, VIC, 3000. AIV Holdings Australia Pty Ltd is part of the Preslite organization which includes Preslite Australia Pty Ltd and AIV Management Services Pty Ltd. We were also the Voluntary Administrators of these two companies, but we are now the liquidators as their creditors voted to place them into liquidation at the creditor meetings on 6 February 2001. The administrators have traded the Preslite Drive Technologies business (which is a division of AIV Management Services Pty Ltd) and the automotive business of Preslite Australia Pty Ltd on from 13 December 2000 and 5 December 2000 respectively. Due to the vehicle industry close down from 22 December 2000 to 15 January 2001, Preslite and PDTalso closed. Part of the Preslite business reopened on 8 January 2001 but Preslite and PDT will return to full production from 15 January 2001 under the continuing control of the Administrators. The Administrators (through PricewaterhouseCoopers Securities Pty Ltd) have received a number of non-binding indicative offers for the business from several interested parties. These parties are continuing their due diligence procedures within the Administrators' time frame which presumes that a sale of the business can be consumated by 31 January 2001. In this context, "business" means the Preslite Australia Pty Ltd automotive business and the Preslite Drive Technologies non-automotive business that operates in AIV Management Services Pty Ltd. The Administrators granted an extension for the submission of final binding offers by interested parties to 2 February 2001. A number of offers were received and the Liquidators worked through a number of issues with the preferred bidders to complete an agreement for the sale of business. A sale of the business was settled on Monday 26 February 2001 and the liquidators continued to trade on the business, under license, until 9 March 2001. The purchaser now trades the business. Likely outcome for creditors and timetable There is not likely to be any return for the unsecured creditors of AIV Holdings Australia. (Source: www.pwcrecovery.com) ================================ C H I N A & H O N G K O N G ================================ ART ENOUGH: Winding Up Petition Hearing Set ------------------------------------------- The petition to wind up Art Enough Investments Limited is set for hearing before the High Court of Hong Kong on November 28, 2001 at 9:30 am. The petition was filed with the court on August 10, 2001 by Po Sang Bank Limited (whose undertakings have been succeeded by Bank of China (Hong Kong) Limited by virtue of the Bank of China (Hong Kong) Limited (Merger) Ordinance, Cap. 1167), whose registered office is situated at Bank of China Tower, 1 Garden Road, Central, Hong Kong. CHINA GARDEN: Winding Up Petition To Be Heard --------------------------------------------- The petition to wind up China Garden Limited will be heard before the High Court of Hong Kong on December 5, 2001 at 9:30 am. The petition was filed with the court on August 17, 2001 by Sin Hua Bank Limited (whose undertakings have been succeeded by Bank of China (Hong Kong) Limited by virtue of the Bank of China (Hong Kong) Limited (Merger) Ordinance, Cap. 1167 whose registered office is situated at Bank of China Tower, 1 Garden Road, Central, Hong Kong. COUNTIFAIR COMPANY: Faces Winding Up Petition --------------------------------------------- The petition to wind up Countifair Company Limited will be heard before the High Court of Hong Kong on December 5, 2001 at 9:3.0 am. The petition was filed with the court on August 17, 2001 by Sin Hua Bank Limited (whose undertakings have been succeeded by Bank of China (Hong Kong) Limited by virtue of the Bank of China (Hong Kong) Limited (Merger) Ordinance, Cap. 1167 whose registered office is situated at Bank of China Tower, 1 Garden Road, Central, Hong Kong. FIRST PACIFIC: Enters Sale, Purchase Agreement With Nakornchuen --------------------------------------------------------------- First Pacific Company Limited (First Pacific) announced that it has signed a sale and purchase agreement with Nakornchuen Co. Ltd., a member of the T.C.C. Group, in relation to the disposal of its entire 83.5 per cent indirect interest in Berli Jucker Public Company Limited (Berli Jucker) on 28th November, 2001. The terms of the sale and purchase agreement are substantially the same as those set out in the announcement made on 21st November, 2001, with additional provisions relating to representations and warranties. First Pacific advised that completion of the sale and purchase is expected to take place on 19th December, 2001, at which time First Pacific will make a further announcement. A circular containing further details on the disposal will be dispatched to shareholders in accordance with The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Ltd. GUANGDONG INTERNATIONAL: Hotel Sale Slated For December ------------------------------------------------------- DebtTraders analysts, Daniel Fan and Blythe Berselli, say Guangdong International Trust & Investment Corporation (GITIC) plans to sell its stake in the 63-story Guangdong International Hotel for 2 billion yuan ($241 million) through an auction on December 18. According to Fan and Berselli, "We estimate the sale of the Guangzhou's tallest hotel will enable the defaulted provincial investment arm to repay another 8% of its outstanding debt to creditors." GITIC repaid 711 million yuan ($86 million) to its creditors. "We believe the news will benefit the price of the GITIC 6.75% Bond due '03," add Fan and Berselli. DebtTraders reports Guangdong International Trust & Investment Corporation's 6.750% bonds due in 2003 (GITIC1) are trading between 14.5 and 16.5. Visit http://www.debttraders.com/price.cfm?dt_sec_ticker=GITIC1for real-time bond pricing. HEROTIME ENGINEERING: Winding Up Petition Slated For Hearing ------------------------------------------------------------ The petition to wind up Herotime Engineering Limited is scheduled to be heard before the High Court of Hong Kong on January 30, 2001 at 11:00 am. The petition was filed with the court on November 12, 2001 by Po Sang Bank Limited (whose undertakings have been succeeded by Outboard Marine Corporation Asia Limited (In Creditors' Voluntary Liquidation) whose registered office is situated at 35-47 Tsing Yi Road, Tsing Yi Island, New Territories, Hong Kong. KIRK WOOD: Faces Winding Up Petition ------------------------------------ The petition to wind up Kirk Wood Development Limited is set for hearing before the High Court of Hong Kong on December 5, 2001 at 9:30 am. . The petition was filed with the court on August 17, 2001 by Sin Hua Bank Limited (whose undertakings have been succeeded by Bank of China (Hong Kong) Limited by virtue of the Bank of China (Hong Kong) Limited (Merger) Ordinance, Cap. 1167 whose registered office is situated at Bank of China Tower, 1 Garden Road, Central, Hong Kong. MANDARIN RESOURCES: Subscription Agreement Conditions Completed --------------------------------------------------------------- The Board of Directors of Mandarin Resources Corporation Limited (the Company), announced that all of the conditions precedent to the completion of the Subscription Agreement have been fulfilled and the Subscription was accordingly completed on 28th November, 2001. PONDFORD LIMITED: Winding Up Petition To Be Heard ------------------------------------------------- The petition to wind up Pondford Limited is scheduled for hearing before the High Court of Hong Kong on December 5, 2001 at 9:30 am. The petition was filed with the court on August 17, 2001 by Sin Hua Bank Limited (whose undertakings have been succeeded by Bank of China (Hong Kong) Limited by virtue of the Bank of China (Hong Kong) Limited (Merger) Ordinance, Cap. 1167 whose registered office is situated at Bank of China Tower, 1 Garden Road, Central, Hong Kong. SEAWOOD GROUP: Winding Up Petition Set For Hearing -------------------------------------------------- The petition to wind up Seawood Group Limited was heard before the High Court of Hong Kong on November 28, 2001 at 9:30 am. The petition was filed with the court on August 15, 2001 by The National Commercial Bank Limited (whose undertakings have been succeeded by Bank of China (Hong Kong) Limited by virtue of the Bank of China (Hong Kong) Limited (Merger) Ordinance, Cap. 1167 whose registered office is situated at Bank of China Tower, 1 Garden Road, Central, Hong Kong. ================= I N D O N E S I A ================= ASTRA: DebtTraders Assigns 80% Safety Rating On Bond Due '05 ------------------------------------------------------------ Analyst Daniel Fan of DebtTraders says that PT Astra International Tbk reported October 30 a turnaround in net profit for the first nine months in 2001 from an increase in sales and a substantial reduction in foreign exchange loss, compared to a loss in the same period a year ago. According to Fan, Astra's EBIDTA remained solid despite a marginal 4% drop. In addition, the Company repaid its $81.1 million Floating Rate Bond due December 2001 in March this year. Fan said, "Although we do not have a formal investment opinion on the Bond, we assign a SAFETY rating of 80% to the Astra Floating Rate Bond due '05 with a yield of 19.74% (without taking the sinking fund into account). The SAFETY rating reflects Astra's continued improvement in financial performance and our belief in its ability to meet the repayment schedule." According to DebtTraders, PT Astra International Tbk's 5.719% floating rate notes due in 2005 (ASTRA2) are trading between 60 and 63. For more real-time bond pricing information, check http://www.debttraders.com/price.cfm?dt_sec_ticker=ASTRA2 INDOSIAR VISUAL: Sold For Rp775 Per Share ----------------------------------------- The Indonesian Bank Restructuring Agency (IBRA) and PT Holdiko Perkasa (Holdiko), a holding company established pursuant to the Shareholding Settlement Agreement between IBRA and the Salim Group, announced Wednesday that Holdiko has sold its 49% shareholding in PT Indosiar Visual Mandiri Tbk. (Indosiar), a leading television station in Indonesia, to PT TDM Aset Manajemen for gross proceeds of Rp755 billion, or Rp775 per share, signifying a 10.7% premium to the closing price of Rp700 on 28 November 2001, or a 19.2% premium to the IPO price of Rp650. This proceeds represents a recovery rate in excess of 100% of its MSAA transfer value. The sale of Holdiko's 49% stake in Indosiar was officially launched at the end of August 2001 and implemented a two-tier open tender method. Subsequent to this transaction, Holdiko will hold a remaining 8.26% from its initial 57.26% stake in Indosiar, which will be divested in due course. On this transaction, Dasa Sutantio, Deputy Chairman Ad Interim - AMI, IBRA comments, "This transaction is the result of a well orchestrated teamwork which began over a year ago, and which was ultimately aimed at achieving optimum value. The sale process of Indosiar so far has been very well carried out, resulting in a competitive bid that brought an attractive offer price." Indosiar is one of Indonesia's leading television stations, broadcasting to 106 cities in Indonesia or approximately 82% of the country's television audience. Indosiar reported an increase of net income from IDR 9 billion in 1999 to IDR 108 billion in 2000. "We are pleased to have completed one of our largest transactions this year and we are glad to have had the opportunity to invest in Indosiar, which is currently one of the country's most favored assets," states Djaja Mulia, Director of PT TDM Aset Manajemen on the transaction. "We have managed to raised local funds to finance the particular transaction, and are confident that Indosiar will continue to lead the Indonesian television industry," he added. PT TDM Aset Manajemen is an Indonesian-based investment management company established by investment bankers Djaja Mulia and Irwan Dinata. The company's main activities focus on managing assets for its institutional and retail clients. "In our effort to increase the value of Indosiar prior to selling our shareholding, we first conducted a debt to equity swap, followed by Indosiar's Initial Public Offering (IPO) last March and then a refinancing of IDR 400 billion of its debt. Hence, with Indosiar in a sound financial position, our next step was to divest our shareholding. We are proud to announce that our recovery rate for Indosiar is well above 100%," states Scott Coffey, Director of Holdiko. The divestment of Holdiko's 49% stake in Indosiar is Holdiko's 13th transaction for this year. PT Trimegah Securities Tbk. acts as financial advisor to Holdiko and Indosiar on all previous Indosiar transactions leading to this strategic sale. To date, the overall recovery rate of IBRA/Holdiko's asset sales is 51%. "These past few weeks have been a tremendously busy time for all of us as we have concluded 5 out of the 12 assets sales we launched between last August and September, while doing all the necessary preparations to launch the sale process of Indomobil last week," added Coffey on the progress of Holdiko's other asset sales. "During the next one week, we expect to also sign Sale and Purchase Agreements to conclude the sale process of Sugar Group, Berdikari, Yakult, Riau Industrial Estates and Sulfindo," he added. To date, Holdiko has disposed of 57% of its initial portfolio, having sold its ownership in 62 out of 108 companies transferred under the MSAA. Progress on Holdiko Asset SalesHoldiko continues to progress with the sale process of its other assets from a total of 20 scheduled transactions for 2001. These transactions include the sale of Holdiko's ownerships in its Sugar Group, PT Berdikari Sari Utama Flour Mills, PT Yakult Indonesia Persada, Riau Industrial Estates (PT Herwido Rintis / PT Bintan Inti Industrial Estate / PT Karimun Sembawang Shipyard), PT Indogift Chuenher Indah, PT Indomarco Adi Prima, Sulfindo Group, and PT Indomobil Sukses Internasional Tbk. The sale processes of these remaining asset sales commenced last August and September 2001 and are expected to be completed by mid-December 2001. To date this year Holdiko has closed the following asset sale transactions: Closed in 2001 (sold in 2000) Salim Plantations US$ 368 million - Loan repayment to Holdiko Rp357 billion Mosquito Coil Group Rp610 billion Sold in 2001 First Pacific Co. Ltd. US$8.55 million Indocoal US$45.5 million Indomaret Rp162 billion Indocement (Tranch A) US$ 43.8 million Indocement (Tranch B) Rp250.4 billion Kerismas Rp297 billion Indopoly US$29.17 million Yunnan Kunlene US$14.38 million PT Indosiar Visual Mandiri Tbk. - Loan repayment to Holdiko Rp400 billion PT Salim Rengo Containers Rp204 billion PT Gumindo Perkasa Industri US$1.68 billion PT Poli Contindo Nusa Rp49.5 billion Guangdong Jiangmen ISN Float Glass US$34.17 million PT Indosiar Visual Mandiri Rp755 billion Total estimated gross proceeds from 13 transactions Rp8.551 trillion *) IDR/USD exchange rate used as of date of sale PT Holdiko Perkasa was established in relation to the settlement between the Salim Group and IBRA with regard to loans extended by PT Bank Central Asia (BCA) to companies affiliated to the Salim Group. As part of the settlement agreement with IBRA, the Salim Group transferred shares and assets in more than 100 operating companies to PT Holdiko Perkasa. As direct and indirect shareholder of these companies, it is Holdiko's responsibility to supervise each individual company with the aim of disposing of a sufficient amount of these shareholdings. Holdiko will subsequently direct the disposal proceeds to IBRA as part of the settlement agreement. The Indonesian Bank Restructuring Agency (IBRA) is an agency of the government of Indonesia established at the beginning of 1998 as the primary agency to oversee the rehabilitation of the financial sector. IBRA is authorized to take over and control troubled banks and dispose of their assets and collateral. SEMEN GRESIK: Commissioners In Agreement To Set Up Holding ---------------------------------------------------------- State Minister of State-Run Company will decide on PT Semen Gresik problem next week, while three president commissioners consecutively of PT SG, PT Padang and PT Semen Tonasa agreed to establish an holding, Bisnis Indonesia reported Thursday. "Hopefully decision can be made this week. If it is likely, there should be set up join hearing with Commission V and IX at once. Thus make it faster to complete," State Minister of State- Run Company Laksamana Sukardi said. According to him, privatization policy team chaired by Minister for Economy Dorodjatun Kuntjoro `Jakti will meet again on Friday next week. Meanwhile, PT Semen Gresik's President Commissioner Saafroedin Bahar, PT Semen Padang's President Commissioner Setiadi Dirgo and PT Semen Tonosa's President Commissioner Nizar Kayo, want to establish a new cement holding company as a solution for the spin-off problem. The three commissioners also proposed review over CSPA (conditional sale & purchase agreement) with Cemex, which has become a source of problems recently. ========= J A P A N ========= BRIDGESTONE CORPORATION: Plans Increase In Film Production ---------------------------------------------------------- Tire manufacturer Bridgestone Corp plans to increase its capacity to produce high-performance films used in car navigation systems and plasma display panels four-fold, PRNewsAsia reported on November 28. As part of the process, the company built a Y1 billion clean room at a plant in Iwata, Shizuoka Prefecture. More than Y10 billion of revenue is expected from the sale of the latest film product by the year 2006, significantly increasing current production levels by four times. Bridgestone has been faced with lawsuits blaming its tires for some 150 traffic deaths, and has since recalled some 6.5 million tires, which resulted in huge financial losses to the company. The tire company's relationship with Ford Motor Corporation has soured because one of the American auto giant's vehicle models, the Ford Explorer, exclusively used Bridgestone tires. KINSHO CORPORATION: Seeks Y20B Loan Waiver ------------------------------------------ Kinsho Corp, which recently unveiled restructuring plans, has asked the Bank of Tokyo-Mitsubishi and Mitsubishi Trust and Banking Corp to waive about Y20 billion in loans, PRNewsAsia reported on November 29. Main creditor, Bank of Tokyo Mitsubishi, has been requested to shoulder about Y12-Y13 billion of the debt waiver and Mitsubishi Trust is to shoulder the remainder. As part of its recently revealed restructuring plans, the firm, seeks to rehabilitate itself by focusing management resources on its main metals business. By March 2002, the ailing company also plans to withdraw from most of its unprofitable operations, such as textiles, machinery and real estate. KINSHO CORPORATION: Mitsubishi Tokyo To Waive Y36.5B In Loans ------------------------------------------------------------- Bank of Tokyo-Mitsubishi and Mitsubishi Trust & Banking Corp., both subsidiaries of Mitsubishi Tokyo Financial Group Inc have decided to waive a combined Y36.56 billion in loans previously granted to ailing mid-sized trading house Kinsho Corporation, according to Wednesday Asian Wall Street Journal report. Bank of Tokyo-Mitsubishi is set to waive at total of Y24.1 billion. Mitsubishi Trust on the other hand is set forgive Y12.5 billion. Kinsho recently announced that it would undertake a restructuring plan that will include drastic staff cuts and a debt waiver request. KOKUSAI SECURITIES: 'BBB-' Rating Still On CreditWatch ------------------------------------------------------ Standard & Poor's revised Monday its CreditWatch listing on the triple-'B'-minus long-term rating on Kokusai Securities Co. Ltd. to positive from negative (see ratings list below). The rating action follows the announcement by Kokusai that it will merge with two securities subsidiaries of Mitsubishi Tokyo Financial Group Inc. (MTFG), in July 2002. The merged entity is expected to eventually be held under the holding company, MTFG, as the securities arm of the group. The merger with Tokyo Mitsubishi Securities Co. and Tokyo Mitsubishi Personal Securities Co., of which the MTFG group has significant ownership, along with the new entity's expected positioning as the strategically important securities subsidiary of MTFG, should add strength to Kokusai's financial and business profiles. Although Kokusai has maintained strong business ties with MTFG, which has an indirect stake of 32.63% through the Bank of Tokyo-Mitsubishi Ltd. (A-/Negative/A-2), integration with the MTFG group has so far been limited. The combined entity will have the fourth-largest market share in Japan behind the "big three" of the Daiwa, Nomura, and Nikko Cordial groups, and about the same as Shinko Securities Co. Ltd. In resolving the CreditWatch status, Standard & Poor's will meet with the management of both Kokusai and MTFG to evaluate the exact merger scheme, integration process, and group strategy. RATINGS STILL ON CREDITWATCH; IMPLICATIONS REVISED TO POSITIVE Kokusai Securities Co. Ltd. Counterparty credit rtg BBB-/Watch Pos/-- Senior unsecd debt BBB-/Watch Pos NIIGATA ENGINEERING: Bankruptcy Sparks Fears, Sell Offs ------------------------------------------------------- The failure of heavy machinery maker Niigata Engineering sparked nervousness throughout corporate Japan, firing a sell-off in shares of firms seen to be most vulnerable by the recession that has hit the Japanese economy, NewsOnJapan reported Wednesday. Niigata filed for bankruptcy protection on Tuesday with debts totaling Y227 billion, prompting the Nikkei Stock Exchange to drop by nearly 3 percent. * Japan's Life Insurers Post Profit Plunges * --------------------------------------------- As falling share prices saddled securities portfolios and policy holders continue to distance themselves, Japan's major life insurers posted dips in business profits, the Japan Times reported on November 28, citing midterm earnings reports submitted by the companies themselves. Profits sank for the core business operations of six out of the ten major firms but even the remaining four firms posted huge losses on their massive securities holding. The biggest life insurer, Nippon Life Insurance Co., announced a huge 7.8 percent drop in its profits from core operations to Y289.4 billion. Profits from its securities portfolio decreased to Y2.4 trillion at the end of March from the Y4.2 trillion originally set. Mitsui Mutual's solvency margin ratio slid from 492.7 percent at the end of March to 427.2 percent, that of Asahi Mutual on the other hand dropped from 543.4 to 445 percent. For seven out of the ten companies, terminations rose year-on- year, falling only at Nippon Life, Dai-Ichi Mutual Life Insurance Co. and Daido Life Insurance Co. * Panel Proposes Bankruptcy Law Change To Protect Bondholders ------------------------------------------------------------- A study panel composed of academics, lawyers and other experts in corporate bankruptcies, and headed by prominent former judge Shinjiro Takagi, plans to present to the Japanese government a proposal that aims to facilitate corporate reorganizations under bankruptcy law, while protecting the interests of bondholders, the Associated Press reported on November 28. The proposal allows bondholders of a failed company to directly participate in the meetings of concerned parties that decide on reorganization plans, should they obtain court approval. The panel wants the proposal to be incorporated into a bill being drafted by the government for the revision of the Corporate Rehabilitation Law. The proposal is expected to gain wide attention in the bankruptcy field, brought in part by the September collapse of Mycal Corporation, which has drawn attention on the issue of how bonds held by individual investors will be treated in case the company reorganizes. ========= K O R E A ========= DAEWOO MOTOR: GM Takeover Gaining Momentum ------------------------------------------ General Motors Corporation's appointment of Nick Reilly to lead its "Daewoo transition team", and eventually serve as GM- Daewoo's Chief Executive Officer, has shown the American automaker's strong commitment to take over Daewoo Motor, according to the Korea Herald on Thursday, citing unnamed analysts. Such a strong commitment helps dispel speculations that GM may indefinitely delay the signing of the formal takeover contract due to conflicts with Daewoo's labor union over collective bargaining regulations. An industry analyst said, "GM has displayed its strong intention to acquire Daewoo Motor through the early appointment of a CEO." He further adds that, "It also suggested that GM has not encountered any significant obstacles to the conclusion of the final contract. Thus, the takeover procedures are expected to proceed smoothly." DAEWOO MOTOR: GM May Not Acquire Daewoo Sales Unit -------------------------------------------------- Citing an unnamed Daewoo Motor official, PRNewsAsia reported Wednesday that the General Motors Corp Daewoo take over may not include its Motor Sales' dealers network, but is considering instead using it on a contractual basis only. GM reportedly concludes that acquiring local dealerships exclusively may not prove effective because such dealerships are seen as too dependent on the headquarters. HYNIX SEMICON: Strategic Tie-Ups Essential For Rehabilitation ------------------------------------------------------------- The special restructuring body responsible for leading Hynix Semiconductor Inc.'s restructuring efforts stressed that the troubled chipmaker should consider forming strategic alliances with foreign chipmakers in its efforts to normalize business operations, PRNewsAsia reported Thursday. Former Commerce Minister Shin Kook-hwan, currently the head of the restructuring body said, "A strategic alliance is a must for Hynix." When he was asked about the possibility of a merger with either Micron or Infineon, Shin made no comment except saying that the Hynix's restructuring will proceed "in line with the global semiconductor industry's restructuring". According to DebtTraders, Hynix Semiconductor Inc.'s 8.625% bonds due in 2007 (HYUNS2) are trading below par between 47.0 and 55.0. For more real-time bond pricing updates, go to: http://www.debttraders.com/price.cfm?dt_sec_ticker=HYUNS2 HYNIX SEMICON: Committee Considers Reform Plan Revision ------------------------------------------------------- The committee tasked to lead Hynix Semiconductor Inc.'s restructuring efforts will revise some components of its reform plans as it also considers forming alliances with foreign companies, the Asian Wall Street Journal reported on Wednesday. The creditor-led committee will consider all possible options to facilitate Hynix's rehabilitation including a review of the company's ongoing restructuring plans, such as asset sales and operation shutdowns, devised to sustain its operations. Creditors recently agreed to grant the ailing chip maker a bailout package worth some W8 trillion. By the end of October, Hynix had debts totaling W8.6 trillion. Moreover, as part of its rehab efforts, Hynix has also been trying to sell some of its semiconductor operations to Chinese companies but have failed to make any progress so far. The committee aims to normalize the troubled chipmaker's operations over the next year, and to get it back into the black by the year 2003. HYUNDAI ENGINEERING: Bailout Plan Reaffirmed By Creditors --------------------------------------------------------- A W2.9 trillion bailout plan for Hyundai Engineering & Construction has been reaffirmed its creditors, who also agreed to extend maturities of the ailing construction company's existing debt, the Asian Wall Street Journal reported on November 28. Creditors also agreed to the expansion of the company's export credit line to US$85 million, to be extended at an interest rate of four percentage points above the three-month London inter- bank offered rate. The plan provides that the interest rate for Hyundai's won- denominated loans will be lowered to 7.5 percent from 10 percent. Debt maturities will also be extended by three years to end-2004. SEOULBANK: Seeks Government's Planned Stake Sale Approval --------------------------------------------------------- Seoulbank wants the South Korean government sell its stake in the bank to a consortium led by domestic and foreign companies, and is planning to submit an official proposal on the matter early this week, the Asian Wall Street Journal reported Wednesday, citing a Seoulbank spokesman. The Korean government has been trying to sell Seoulbank to domestic investors following failed attempts to entice foreign investors to acquire it. The negotiations for the sale of Seoulbank to HSBC Holdings in 1999 didn't fall through. The government also tried to sell the bank to DB Capital Partners earlier this year. =============== M A L A Y S I A =============== ARTWRIGHT HOLDINGS: SC Grants Proposed Exemption Request -------------------------------------------------------- Alliance Merchant Bank Berhad (formerly known as Amanah Merchant Bank Berhad), on behalf of the Board of Directors of Artwright Holdings Berhad (AHB or Company), announced that the Securities Commission (SC) has, by its letter dated 27 November 2001, approved the application for the proposed exemption from complying with the requirements as set out under paragraphs 21.01 and 21.02 of the SC's Policies and Guidelines on Issue/Offer of Securities (Guidelines) for the proposed issuance of RM14,410,000 nominal value of new 5-year 5.5% irredeemable convertible unsecured loan stocks as part settlement of the unsecured debts. Paragraph 21.01 of the SC Guidelines states that the issue of the debt securities should be made in the following circumstances: * the company is in need of funds for the expansion of business activities, including expansion by way of acquisition, thereby improving its productive capacity and enhancing its profitability; * the company is in need of funds for the diversification of business to achieve synergies; and * the company is in need of funds to refinance its existing borrowings, thus reducing its interest cost and thereby improving its profitability. Paragraph 21.02 of the SC Guidelines states that the funds raised pursuant to an issue of debt securities could be utilized for repayment of borrowings, but the proportion of proceeds for the reduction of short-term borrowings out of total proceeds should not be too large, preferably not more than 50%. ESPRIT GROUP: Seeks Shareholders' Proposed Amendments Approval ---- --------------------------------------------------------- Esprit Group Berhad (EGB) announced that it intends to seeks the shareholders' approval for the proposed amendments to the Company's Articles of Association (Proposed Amendments) to comply with the provisions of the KLSE Listing Requirements and to align the Articles of Association with current corporate practices. The Proposed Amendments will be tabled for shareholders' approval at the 7th Annual General Meeting of EGB to be convened later. Details of the Proposed Amendments will be sent to shareholders with the Annual Report and the Notice convening the 7th Annual General Meeting at a later date. JOHOR CORPORATION: Posts Unit's Defaulted Payment Updates --------------------------------------------------------- Johor Corporation (JCorp) had informed Damansara Realty Berhad (DBhd) that the Security Trustee had on 16 November 2001 served the Second Put Option Notice to JCorp after receiving the valuation reports on the Subject Properties from the three (3) valuers. The Second Put Option Notice requires, inter-alia, JCorp to purchase the Subject Properties at the agreed price of RM523 million representing the total of the highest of the values of the Subject Properties as per the valuations of the said valuers. Reference is made to the announcement dated on 18 September 2001 in relation to the default in principal and interest payment by Johor City Development Sdn. Bhd. (JCD), a wholly-owned subsidiary of Jcorp, whereby the guarantor banks had exercised certain of their rights under the RM400 million Bank Guarantee Facility (BG Facility) - Default in Principal Payments by JCD. EFFORTS TO RESTRUCTURE THE BG FACILITY Following the default on the RM400 million BG Facility by JCD, JCorp had made various efforts in negotiating with the guarantor banks for the purpose of restructuring the said BG Facility including, amongst others, a proposed scheme to deal with the obligations under the Put Option as part of the on going JCorp's debt restructuring exercise. As per JCorp's letters of 2 July, 17 and 26 September 2001 to the guarantor banks, JCorp had reiterated their undertaking to address their Put Option obligation under their debt- restructuring scheme and accordingly requested the guarantor banks to refrain from any dealing on DTC Property and a standstill arrangement should subsist while JCD's indebtedness is being dealt with. As a consequence, the notice of assignment of rental proceeds of DTC Property to the Security Trustee was not effected, and the rental collection of DTC Property continued to be made in favor of DBhd Group. APPLICATION FOR INTERIM INJUNCTION AGAINST THE GUARANTOR BANKS Following the legal advice from its appointed solicitors, on 13 November 2001, DBhd had filed an application for an Interim Injunction to the Kuala Lumpur High Court to, inter-alia, restrain the guarantor banks from enforcing the terms under the BG Facility against DBhd, enforcing the securities to the guarantee in particular DTC Property including the assignment of rental proceeds of DTC and the exercise of Put Option over DTC Property. The Writ of Summons was extracted from the Court on 23 November 2001 and accordingly have been served on to the guarantor banks. The hearing for the injunction had been fixed on 30 November 2001. The Board of Directors of DBhd is of the view that the Interim Injunction is necessary with the view of preserving and protecting of DBhd's core asset as well as on the ground of protecting the interest of DBhd and minority shareholders. In this respect, the Board of Directors of DBhd will take all reasonable steps as may be necessary to do the same, including but not limited to seeking relief from the Courts. KEMAYAN CORPORATION: KLSE Requires Detailed Progress Reports ------------------------------------------------------------ Arab-Malaysian Merchant Bank Berhad, on behalf of the Board of Directors of Kemayan Corporation Berhad (KCB or the Company), announced that the KLSE, via its letter dated 23 November 2001 approved an extension of three (3) months i.e. from 23 October 2001 to 22 January 2002 to enable the Company to announce its Requisite Announcement (RA). The Company is also required to provide the KLSE with detailed progress reports on the development and/or latest status of the regularization exercise: (a) 1st progress report by 6 December 2001 on any development between the Company's application letter dated 17 October 2001 and 5 December 2001; and (b) 2nd progress report by 15 January 2002 on any development between 5 December 2001 and 14 January 2002. MEASUREX CORPORATION: Updates Significant Litigation Status ------------------------------------------------------------ The Board of Measurex Corporation Berhad (MCB) announced that the Judgment obtained by Malayan Banking Berhad against MCB has been set aside by the Court of Appeal of Singapore on 22 November 2001 and has been replaced by this order: (a) MCB is given unconditional leave to defend the claim for compound interest and default interest; (b) an interlocutory Judgment is entered against MCB for principal and simple interest, the exact amount of which is to be assessed by the court. PANCARAN IKRAB: FIC OKs Proposed Restructuring Scheme Revisions --------------------------------------------------------------- Alliance Merchant Bank Berhad (Alliance), for and on behalf of the Board of Directors of Pancaran Ikrab Bhd (PIB or Company), announced that the Foreign Investment Committee (FIC) has, vide its letter dated 23 November 2001, approved the Proposed Revision to the Original Restructuring Scheme, subject to the following conditions: (1) The level of Bumiputra equity interest in Promenade Consolidated Berhad is to be increased to 30% by 31 December 2002; and (2) PIB is to obtain the approval of the Ministry of International Trade and Industry (MITI) for the Proposed Revision to the Original Restructuring Scheme. PIB had, on 30 August 2001 and 8 October 2001, submitted applications pertaining to the Proposed Revision to the Original Restructuring Scheme to the MITI. The MITI's approval for the Proposed Revision to the Original Restructuring Scheme is still pending. PLANTATION & DEVELOPMENT: Obtains FIC's Proposed Scheme Approval ---------------------------------------------------------------- Arab-Malaysian Merchant Bank Berhad, on behalf of Plantation & Development (Malaysia) Berhad (P&D or the Company), announced to the Kuala Lumpur Stock Exchange that the Company has obtained the approval of the Foreign Investment Committee (FIC) for the Proposed Debt and Equity Restructuring Scheme (Proposed Scheme) according to its letter dated 27 November 2001. REPCO HOLDINGS: KLSE Gives Requisite Announcement Time Extension ---------------------------------------------------------------- Repco Holdings Berhad (Special Administrators Appointed) (RHB or the Company) announced that the Kuala Lumpur Stock Exchange (KLSE) had, by its letter dated 23 November 2001, approved the Company's application for an extension of four (4) months from 23 October 2001 to 22 February 2002 to enable the Company to make its announcement on the Company's plans to regularize its financial condition (the Requisite Announcement). SAMLING FIBRE: Defaults US$ Banking, Credit Facilities Payments --------------------------------------------------------------- The Board of Directors of Lingui Developments Berhad [LDB] announced that: (1) On 27 November 2001, LDB's associated company, Samling Fibre Board Sdn. Bhd. [SFB], (a joint venture company between LDB, a Taiwanese and two Japanese parties), defaulted in the repayment of a principal amount of US$1.8 million on its USD52 million banking and credit facilities [Facility] granted by Bumiputra-Commerce Bank Berhad [BCB], pursuant to a facility agreement dated 25 November 1996. The outstanding balance on the Facility as at 27 November 2001 was USD35.3 million. (2) SFB's default was due to the fact that its operating profits have not been sufficient to enable it to meet its repayment obligations under the Facility. (3) LDB is currently assisting SFB in its ongoing negotiations with BCB to reschedule the repayments under the Facility. (4) Whilst LDB is willing and able to provide further funds to SFB towards the repayments under the Facility to the extent of LDB's equity interest percentage in SFB, the Japanese shareholders of SFB are unable to do the same. As SFB is only an associated company of LDB, it is of the view that it should not finance SFB entirely on its own. (5) Other than a possible provision for LDB's investment in SFB, there are no other anticipated financial or legal implications in respect of the default on the LDB and its subsidiary companies. In respect of the financial and legal implications on SFB as a result of the default, BCB may take enforcement proceedings against SFB and depending on the consequences of such proceedings, there will be financial and legal implications for SFB which cannot be determined with certainty at present. (6) As part of the security for the Facility, SFB had granted BCB a debenture, charging by way of a fixed and floating charge, all its assets to BCB. Under the terms of the debenture, BCB is empowered to appoint a receiver or receiver and manager over the assets concerned in the event of a default. (7) SFB's default under the Facility will not trigger any cross default provisions, which will have an effect on the LDB's and its subsidiary companies' credit facilities. SELOGA HOLDINGS: KLSE Approves Extension Application ----------------------------------------------------- The Board of Directors of Seloga Holdings Berhad (SHB or the Company) informed 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 exercise. 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. The Company has on 17th October 2001 made an application to the KLSE for a further extension of time for another three (3) months from 1st November 2001 to 31st January 2002 for the Company to regularize its financial plans the soonest possible. The Board of Directors of SHB informed that the KLSE has vide its letter dated 23rd November 2001 approved the Company application for the extension of time. The Company is also required to provide the Exchange detailed progress reports on the development and/or latest status of the regularization exercised by the following dates: - 1st progress report by 6th December 2001 on any development between the Company's application letter dated 17th October 2001 and 5th December 2001; and - 2nd progress report by 15th January 2002 on any development between 6th December 2001 and 14th January 2002. The Company will hence endeavor to its best possible to make the announcement within the above-stipulated timeframe. SUNWAY HOLDINGS: Debt Plan Approved ----------------------------------- DebtTraders Analysts, Daniel Fan and Blythe Berselli, say that Sunway Holding Berhad's, formerly known as Sungei Way Construction Berhad, debt plan was approved by its bondholders on Tuesday. The debt plan consists of: (1) an upfront repayment of 50% of the accrued redemption premium (15.085%), (2) a debt extension to December 2005, and (3) an adjustment in interest rate to 1.75% over Libor for 2002 with a 25 basis point increase per year to 2.5% over Libor in 2005. The builder will repay 5% of the remaining balance in 2002, 20% in 2003, and 37.5% in 2004 and 2005, respectively. "We believe bondholders' endorsement of the debt plan is a credit positive for the Sunway 1.25% Convertible Bond due '01," said Fan and Berselli. DebtTraders reports that Sunway's 1.25% convertible bonds due this year (SUNGEI) are trading between 75 and 85. Go to http://www.debttraders.com/market_today.cfm?info_id=1154for real-time bond pricing. ===================== P H I L I P P I N E S ===================== METRO PACIFIC: Open To Management Buyout ---------------------------------------- First Pacific Co. Ltd. of Hong Kong, parent company of Philippine-based Metro Pacific Corporation (MPC), is open to a management buyout of its Philippine subsidiary currently being structured by MPC president Ricardo Pascua, the Inquirer News Service reported November 29. Pascua is on leave, disengaging himself from the ongoing bidding process for his company's stake in the Bonifacio Global City project. Despite First Pacific's approval of a buyout, top MPC's officials say that negotiations on the sale of MPC's controlling stake in Bonifacio Land Corp. are progressing as planned. METRO PACIFIC: Cutting Debt Burden New Focus -------------------------------------------- Metro Pacific Corp plans to reduce its debt load to cut down on interest expenses that have been undercutting earnings, PRNewsAsia reported Wednesday. Metro Pacific has a direct debt of about P12 billion, P5 billion of which it owes to First Pacific and remainder, to several creditors. However, if obligations of Bonifacio Land Corporation and the Fort Bonifacio Development Corporation are included, the debt increases further to P17.8 billion. The First Pacific subsidiary however wants to reduce as soon as possible, the P7 billion in direct debt it owes to outside creditors. First Pacific Chairman Manuel Pangilinan went on to say, "We want to address this issue as soon as we can in a pro- active way. What needs to be done is reduce debt as quickly as we can so the interest expenses we are experiencing now will be reduced as quickly as we can." METRO PACIFIC: Keeping Ailing Shipping Unit Stake -------------------------------------------------- Metro Pacific Corp will keep its entire stake in Negros Navigation Corp (Nenaco) following a rejection by its creditors and regulators of its plan to declare the interest in the shipping firm as dividend, PRNewsAsia reported yesterday. According to company sources, the proposed dividend distribution in Nenaco depended on both Metro Pacific and Nenaco obtaining respective approvals from creditors and regulatory agencies. Without the requisite approvals, no dividend distribution could be made. The proposed dividend, according to Metro Pacific, covers its entire interest in Nenaco, currently standing at 74 percent, and advances and receivables. NATIONAL POWER: Germany's RWE Keen On Acquiring Napocor Assets -------------------------------------------------------------- RWE AG of Germany is reportedly interested in acquiring assets of the soon-to-be-privatized National Power Corporation, according to the Asian Wall Street Journal on Wednesday, citing Napocor President Jesus Alcordo. Alcordo said that RWE, whose representative earlier inquired about the scheduled auction of Napocor's generation and transmission assets, may participate in the auction of the assets after all. But the German company has yet to submit a formal proposal as it still awaits for the release of the power reform law's implementing rules and regulations and auction guidelines. NATIONAL POWER: Government Prepares New Reinsurance Deal -------------------------------------------------------- After two failed biddings, the government still plans on arranging another negotiated contract for the reinsurance of National Power Corporation's (Napocor) assets, ABS-CBN News reported Thursday. Philippine President Gloria Arroyo has reportedly approved the initiation of a negotiated contract, according to Finance Undersecretary Antonio Bernardo, chair of the Joint Bidding Committee tasked to handle the reinsurance auction. Previously, high ranking officials from the Department of Energy and the Department of Finance recommended a negotiated contract to President Arroyo covering the state-owned power firm's US$6.5 billion Industrial All Risk insurance policy. Bernardo, commenting upon the status of the new deal, said, "We are waiting for the result of the evaluation of our technical people. We will definitely come up with the reinsurance package for Napocor before the end of the year." ================= S I N G A P O R E ================= CAPITALAND LIMITED: Unit Converts SingMall Into Private Trust ------------------------------------------------------------- The Board of Directors of CapitaLand Limited (CCL) announced on Wednesday that its wholly-owned subsidiary, CapitaLand Commercial Limited (CCL), is converting the recently established SingMall Property Trust into a private property trust (Private Trust) with a view to listing it when market conditions are favorable. CCL has also exercised the call option under the Put and Call Option Agreement dated August 22, 2001 and the call option under the Call Option Agreement dated September 10, 2001 and have nominated Bermuda Trust (Singapore) Limited, the trustee of the Private Trust as the nominated party to enter into sale and purchase agreements for the purchase of Junction 8 Shopping Center, Funan and Tampines Mall for an aggregate consideration of S$895 million. The vendors of Junction 8 Shopping Center and Funan are wholly- owned subsidiaries of The Ascott Group Limited (Ascott), a 68.9 percent owned subsidiary of CapitaLand and the vendor of Tampines Mall is a 55 percent owned indirect subsidiary of CapitaLand. Concurrent with entering the sale and purchase agreements, a deposit amounting to 10 percent of the purchase consideration of each Property was paid to the respective vendors of the Properties. The purchase of the Properties by the Private Trust will be funded by the subscription proceeds of units in the Private Trust and external borrowings. An aggregate of 720 million units will be issued in the Private Trust. Two of CCL's wholly-owned subsidiaries, CapitaLand Investments Pte Ltd and Pyramex Investments Pte Ltd will subscribe for units in the Private Trust. It is intended that investors with whom CCL is currently finalizing negotiation terms will subscribe to some of the units in the Private Trust. The purchase of the Properties is scheduled to become final on 28 December 2001. The Board of Directors of CapitaLand also announced on the same day that Pyramex Investments, a newly established investment holding company, has an authorized capital of S$100,000 and an initial paid up capital of S$2. Pyramex Investments is a wholly- owned subsidiary of CapitaLand (Retail) Investments Pte Ltd, which in turn is wholly-owned by CCL. Financial Effects The purchase consideration of the Properties, being S$295 million for Junction 8 Shopping Center, S$191 for Funan and S$409 million for Tampines Mall, was arrived at on a willing- buyer-willing-seller basis and were based on independent property valuations. The acquisition of the Properties is not expected to have any material impact on the earnings per share and net tangible asset value of CapitaLand at the group level, even if CCL and/or its subsidiaries are the sole unitholders of the Private Trust. Interests of Directors and Substantial Shareholders Mr. Lim Chin Beng and Mr. Jackson Peter Tai, who are directors of CapitaLand, are the Chairman of Ascott and CCL respectively. Mr Liew Mun Leong, the President and CEO of CapitaLand, is also the Deputy Chairman of Ascott and CCL respectively. Mr. Lui Chong Chee, the Chief Financial Officer of CapitaLand, is the Alternate Director to Mr. Liew Mun Leong on the Board of Ascott and also a Director of CCL. Mr Ed Ng Ee Peng, the Chief Executive Officer of CCL, is also a Director of TML. Save as aforesaid, none of the Directors of CapitaLand has any interest, direct or indirect, in the transaction described above and the Directors are not aware of any substantial shareholders of CapitaLand having any interest in the transaction. FHTK HOLDINGS: Posts Changes In Shareholder's Interest ----------------------------------------------------- FHTK Holdings Limited posted a notice of changes on the interests of substantial holder Oversea-Chinese Banking Corporation Limited. A portion of the disclosed notice: Notice Of Changes In Substantial Shareholder's Interests Name of substantial shareholder: Oversea-Chinese Banking Corporation Limited Date of notice to company: November 27, 2001 Date of change of interest: November 23, 2001 Name of registered holder: Oversea-Chinese Bank Nominees Private Limited 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: 120,000 Percent of issued share capital: 0.01 Amount of consideration per share excluding brokerage, GST, stamp duties, clearing fee: S$0.10500 No. of shares held before change: 731,122 Percent of issued share capital: 0.06 No. of shares held after change: 611,122 Percent of issued share capital: 0.05 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 48,581,292 149,495,667 Percent of issued share capital: 3.95 12.14 No. of shares held after change: 48,581,292 149,375,667 Percent of issued share capital: 3.95 12.13 Total shares: 48,581,292 149,375,667 Oversea-Chinese Banking Corporation Limited direct interest under registered holder UOB Kay Hian Private Limited is 148,764,545 (12.08 percent) and registered holder Oversea- Chinese Bank Nominees Private Limited is 611,122 (0.05 percent) and deemed interest under registered holder UOB Kay Hian Private Limited is 48,176,448 (3.92 percent) and under registered holder Keppel Bank Nominees Private Limited is 404,844 (0.03 percent). Total interest after change is 16.08 percent. PANPAC MEDIA: Euro RSCG Files Lawsuit Against Unit ZingAsia ----------------------------------------------------------- Euro RSCG Pte Ltd (Euro RSCG), an advertising agency, had on July 12, 2001 filed a claim against our subsidiary, ZingAsia Pte Ltd (ZingAsia), for an aggregate amount of approximately $360,000, allegedly being sums due and owing from ZingAsia to Euro RSCG under an Advertising Agency Agreement dated September 1, 2000 entered into between the said parties. Euro RSCG commenced proceedings in the High Court and filed an application for summary judgment to recover the sum of $360,000. ZingAsia disputed the claim and filed an application to have the matter referred to arbitration as provided for under the Agreement. Both applications were heard by the High Court on November 27. The Court granted the application of ZingAsia for a stay of proceedings and has referred the matter to arbitration. The Court also awarded ZingAsia the costs of the application. The Court made no order in respect of Euro RSCG's application for summary judgement. The company also previously disclosed in its Annual Report dated August 13, 2001 that ZingAsia has proposed a Scheme of Arrangement (Scheme) between ZingAsia and its creditors under section 210 of the Companies Act (Cap. 50) of Singapore. The Scheme received the approval of creditors representing the requisite majority in terms of number and value at the creditors meeting held on September 27, 2001. KPMG Corporate Finance Pte Ltd was appointed to assist ZingAsia on all matters relating to the Scheme. Due to Euro RSCG's application for summary judgement as stated above, the Court sanction of the proposed Scheme had to be kept in abeyance. In view of the outcome of the Court hearing yesterday, ZingAsia will proceed to make an application to the Court for sanction of the Scheme. The effects of the Scheme have been provided for in the financial accounts of the Group as at September 30, 2001. Save as disclosed above, the Directors are of the view that the successful implementation of the Scheme will not have any other material impact on the Group's financial performance in the current fiscal period to December 31, 2001. =============== T H A I L A N D =============== NEP REALTY: BBL Reached Settlement Re Loans ------------------------------------------- NEP Realty and Industry Public Company Limited (NEP) informed that Bangkok Bank Public Company Limited (BBL) sued NEP in a black case No. Tho. 14396/2544 for repayment of loans under loan agreement made with BBL calculation up to 18 October 2001, balance of O/D Bt30,129,839.67, P/N Bt64,400,000 in principal and Bt31,411,134.94 in interest. As of 28 November 2001, NEP agreed to enter into a contract of compromise with BBL in black case No. Tho. 14396/2544 at the Civil Court. Under the contract of compromise, BBL agrees not to charge the interest amount Bt25,940,974.61, and NEP agrees to repay complete such payments by 30 September 2009. SARIN PROPERTY: Files Petition For Business Reorganization ---------------------------------------------------------- The Petition for Business Reorganization of real estate developer Sarin Property Company Limited (DEBTOR) was filed in the Central Bankruptcy Court: Black Case Number 707/2543 Red Case Number 729/2543 Petitioner: SARIN PROPERTY COMPANY LIMITED Debts Owed to the Petitioning Creditor: Bt6,590.46 million Planner: Sarin Planner Company Limited Date of Court Acceptance of the Petition: September 7, 2000 Date of Examining the Petition: October 2, 2000 at 9.00 A.M. Court Order for Business Reorganization and Appointment of Planner: October 2, 2000 Announcement of Court Order for Business Reorganization and Appointment of the Planner in Matichon Public Company Limited and Siam Rath Company Limited: October 11, 2000 Announcement of Court Order for Business Reorganization and Appointment of the Planner in Government Gazette : October 31, 2000 Deadline for Planner to submit the Business Reorganization Plan to Official Receiver: January 31, 2001 Planner postponed the date of submitting the Plan #1st: February 28, 2001 Planner postponed the date to submit the reorganization plan # 2nd: March 28, 2001 Appointment date of the Meeting of Creditors for the plan consideration: April 19, 2001 at 9.30 AM. The Meeting of Creditors had passed the resolution accepting the reorganization plan pursuant to Section 90/46 Court postponed the appointment date for the plan consideration to May 15, 2001 at 10.00 am. Court Order for Accepting the reorganization plan : May 15, 2001 and appointed Sarin Planner 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 30, 2001 Announcement of Court Order for Accepting the Reorganization Plan in Government Gazette: July 3, 2001 Contact: Mrs. Bang-Orn Tel, 6792525 ext 112 THAI RUNG: Bankrupt, Under Absolute Receivership ------------------------------------------------ The Central Bankruptcy Court declared Thai Rung Reung Finance and Securities Co. Ltd. , one of 56 suspended companies under the supervision of the Financial Sector Restructuring Authority (FRA), bankrupt and put it under absolute receivership upon the request filed by the company's liquidator. Mr.Kamol Juntima , the FRA's Chairman , said that during October 24 - November 2,2001 Thai Rung Reung had distributed proceeds from the asset sales worth Bt2,913.07 million to their eligible creditors who had filed their claims with the FRA. Of this amount, Bt2,827.00 million or 97.04 % were paid to the Financial Institutions Development Fund (FIDF). Mr.Kamol said that to date , the FRA has already brought 38 suspended companies into the bankruptcy process. In November , six to nine companies are expected to be taken into the process, followed by five to eight more in December. As a result , 52 of 56 suspended companies would be put under absolute receivership by the end of this year. Thai Rung Reung Finance and Securities Co. Ltd. was ordered to suspend operations by the Ministry of Finance on August 5,1997. As of September 30, 2001, the company had Bt7,303.07 million in remaining assets and Bt14,874.87 million in outstanding debts. All of the creditors have to file claims with the Official Receiver for their outstanding debts within 2 months after the receiving orders are publicized. 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-Merlin, 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 prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $575 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***