/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/011218.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, December 18, Vol. 4, No. 246 Headlines A U S T R A L I A GOODMAN FIELDER: Posts Daily Share Buy-Back Notice PACIFIC DUNLOP: Executive General Manager Retires PASMINCO LIMITED: Administrators Granted Proposal Extension PRESLITE GROUP: Posts Case Profile TRAVELAND: Trading Prompts Scrutiny Of Directors' Actions * S&P Posts January Quarterly Rebalance To S&P/ASX Indices C H I N A & H O N G K O N G CLASSIC PASSION: Winding Up Sought By City Property FAME WIN: Winding Up Petition Pending FAVRIT DEVELOPMENT: Hearing of Winding Up Petition Set GOLD ASSET: Winding Up Petition Hearing Set GOOD FIELD: Winding Up Petition Slated For Hearing HINET HOLDINGS: Issues Summary Results Announcement NEW ATTITUDE: Petition To Wind Up Scheduled PEARL ORIENTAL: Cites No Reasons For Share Volume Increase WAH LEE: Appoints Independent Non-Executive Directors WAY PROPERTIES: Faces Winding Up Petition I N D O N E S I A SEMEN CIBINONG: Debt Restructuring Completed J A P A N HITACHI LIMITED: Moody's Confirms Debt Ratings, Outlook Negative MITSUI LIFE: Plans Y900B Shares Sale By March 2004 MUTUAL LIFE: Will Frontload Three-year, Y500B Plan TAISEI FIRE: Seeks Safety Net Operator Assistance TAISEI FIRE: US Federal Court Grants Plea For Assets Protection * November Bankruptcies Surge 10% To New High K O R E A DAEWOO MOTOR: Domestic Plants Resume Operation DAEWOO MOTOR: GM Increasingly Wary On Planned Takeover DAEWOO MOTOR: Pays Back W46.6 Billion To Creditors DAEWOO MOTOR: Two Firms Bid For Busan DAISHIN LIFE: FSC Censures 18 High-Level Employees HYUNDAI MOTOR: Management, Union Agree After Two-day Full Strike KOREA LIFE: Four Prospective Buyers Submit Bids KOREA LIFE: Govt Won't Offer `Put-Back-Option', Says Minister SAMSUNG GROUP: Affiliates Moving Offices To Bundang, Songnam SSANGYONG CEMENT: Signs MOU To Sell 11% Stake In Ssangyong Fire M A L A Y S I A FEDERAL POWER: RAM Reaffirms RM50M RUNIF Rating At P3 KELANAMAS INDUSTRIES: Proposes Articles of Association Adoption L&M CORPORATION: FIC OKs Proposed Restructuring Scheme REKAPACIFIC BERHAD: KLSE To Delists Securities On December 26 TECHNOLOGY RESOURCES: SC Rejects Naluri's RM600M Investment P H I L I P P I N E S NATIONAL BANK: Sy, Alactara Considered For Prexy Post S I N G A P O R E CAPITALAND LIMITED: Unit Disposes Of Parkway Stake PANPAC MEDIA: New Subsidiary Accepts Strategic Investor's Offer SEMBCORP LOGISTICS: The Capital Group Companies Changes Interest T H A I L A N D CENTRAL PAPER: Releases 2002 Holidays EASTERN PRINTING: Rehab Plan Final Hearing Set For January SANYO UNIVERSAL: SET Delists Securities December 20, 2001 SIAMSTEEL GROUP: Business Reorganization Petition Filed In Court THAI PETROCHEMICAL: Administrator Advises Reorg Plan Amendment - - - - - - - - ================= A U S T R A L I A ================= GOODMAN FIELDER: Posts Daily Share Buy-Back Notice -------------------------------------------------- Goodman Fielder Limited posted this notice: DAILY SHARE BUY-BACK NOTICE (EXCEPT MINIMUM HOLDING BUY-BACK AND SELECTIVE BUY-BACK) Name of Entity Goodman Fielder Limited ABN 44 000 003 958 We (the entity) give ASX the following information. INFORMATION ABOUT BUY-BACK 1. Type of buy-back On market 2. Date Appendix 3C was given to 13/11/2001 to ASX TOTAL OF ALL SHARES BOUGHT BACK, OR IN RELATION TO WHICH ACCEPTANCES HAVE BEEN RECEIVED, BEFORE, AND ON, PREVIOUS DAY BEFORE PREVIOUS PREVIOUS DAY DAY 3. Number of shares bought 14,049,637 446,970 back or if buy-back is an equal access scheme, in relation to which acceptances have been received $ $ 4. Total consideration paid 18,761,091 558,034 or payable for the shares 5. If buy-back is an on-market buy-back Highest price paid Highest price paid $1.38 $1.32 Date: - Lowest price paid Lowest price paid $1.30 $1.305 Date: - Highest price allowed under rule 7.33: $1.3860 PARTICIPATION BY DIRECTORS 6. If buy-back is an on-market Nil buy-back - name of each director and related party of a director from whom the company bought back shares on the previous day, the number of shares which the company bought back from each named director or related party, and the consideration payable for those shares. HOW MANY SHARES MAY STILL BE BOUGHT BACK. 7. If the company has disclosed 58,503,396 an intention to buy back a maximum number of shares - the remaining number of shares to be bought back COMPLIANCE STATEMENT 1. The Company is in compliance with all Corporations Law requirements relevant to this buy-back. 2. There is no information that the listing rules require to be disclosed that has not already been disclosed, or is not contained in, or attached to, this form. PACIFIC DUNLOP: Executive General Manager Retires ------------------------------------------------- Pacific Dunlop Limited advised that the Company's Executive General Manager of Finance, Mr Philip R Gay retired Friday after 32 years' service. The current Corporate Treasurer Mr David Graham will assume Mr Gay's responsibilities, becoming the General Manager of Finance and Treasury. The changes follow the sale of the Company's Pacific Brands business on 30 November 2001. PASMINCO LIMITED: Administrators Granted Proposal Extension ----------------------------------------------------------- Pasminco Limited Administrators Ferrier Hodgson have successfully applied to the Federal Court for an extension in the time allowed for them to convene the second meeting of creditors at which a proposal for the company's future will be put forward. This meeting must now be convened no later than 7 April 2002. Prior to this application, the meeting was required to be convened by 7 January 2002. The primary reasons for seeking the extension relate to the complexity of the Pasminco business and the fact that all relevant information and reports necessary to formulate a proposal optimal to all stakeholders, could not be finalized on the previous timetable. There are a number of regulatory and fiscal issues to be resolved to enable the Administrators and stakeholders to arrive at the decision on the most appropriate means of dealing with Pasminco's assets and liabilities. The sale process for the Century mine am continuing but is also incomplete. Accordingly, it would not have been in the interests of all stakeholders to proceed with the second meeting of creditors in early January. For further information contact: Trevor Shard Group Manager Investor Relations ++61 (3) 9288 9186 or 0419 584 515 Peter Griffin Group Manager Public Affairs ++61 (3) 9288 0463 or 0419 314 265 PRESLITE GROUP: Posts Case Profile ---------------------------------- Territory : Australia Company Name: Preslite Group - AIV Management Services Pty Ltd Lead Partner: Nick Brooke Case Manager: Mark Wlossak Date of Appointment: 13 December 2000 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 : by a special resolution of the creditors Registered Office of company: 4-10 Hillwin St, Reservoir Vic Company No / CAN : 081 931 204 Type of Appointment : Liquidator Lead Partner - Full Name : Nicholas Brooke Second Partner - Full Name : David McEvoy Case Information (Last Updated 26/11/2001 10:50:57 AM) First Creditors' Meeting Date : 20 December 2000 Time : 10:00am Address : Level 8, 215 Spring Street, Melbourne Proxy return date : 19 December 2000 Return time : 5:00pm Second Creditors' Meeting (or adjournment) Date : 6 February2001 Time : 10.30 am Address : Level 8, 215 Spring Street, Melbourne, Vic, 3000 Proxy return date: 5 February 2001 Return time : 5.00 pm Time : 12:00 PM Other Key Information Report as to Affairs received from directors: By letter dated 16 January 2001, the directors of AIV Management Services 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 Administration. 6 February 2001 to current in Liquidation. Business sold/ceased trading: The liquidators ceased trading the business on 9 March 2001. The business is now operated by the purchaser. Job closure: AIV Management Services is now in liquidation, operations have ceased and the liquidators are settling the affairs of the group. Background Information Nick Brooke and David McEvoy of PricewaterhouseCoopers were appointed Voluntary Administrators by the Directors 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. The second creditors meeting was held on 6 February 2001 and the creditors resolved to place the company into liquidation. The report sent to creditors prior to this meeting is available on this web site. At the second meeting of creditors the creditors resolved to place the company into liquidation. Copies of minutes of the meeting are available on this web site. 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. The Administrators have traded the Preslite Drive Technologies business and the automotive business of Preslite Australia 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 business is now traded by the purchaser. Likely outcome for creditors and timetable There is not likely to be any return for the unsecured creditors of AIV Management Services Pty Ltd. (www.pwcrecovery.com) TRAVELAND: Trading Prompts Scrutiny Of Directors' Actions --------------------------------------------------------- The actions of ten directors of the failed Traveland travel group are likely to be examined in relation to insolvent trading, Sydney Morning Herald reported Monday, referring to a report by Hall Chadwick partner Richard Albarran. The Directors defended themselves and claimed they did not receive adequate information about the state of the former Ansett subsidiary's finances and did not take part in the day- to-day running of the troubled business. A Friday creditors' meeting will decide whether to wind up Traveland. Mr Albarran was considering to look into the conduct of former administrator Andersen. In a complicated set of transactions, Andersen sold Traveland for roughly $500,000 to e-commerce design company Internova MCI, which sold it as Internova Travel to one of its investors, Australasian Investment Corporation for about the same price in early October. * S&P Posts January Quarterly Rebalance To S&P/ASX Indices ---------------------------------------------------------- Standard & Poor's, the leading provider of equity indices in Australia, announced that effective after the close of business on Monday 31st December 2001 the following changes to the S&P/ASX Indices will occur: S&P/ASX 50 REMOVAL CODE NAME GMF GOODMAN FIELDER LTD ADDITION CODE NAME WFA WESTFIELD AMERICA TRUST S&P/ASX 100 Removal CODE NAME CTX CALTEX AUSTRALIA LIMITED ADDITION CODE NAME IIF ING INDUSTRIAL TRUST S&P/ASX 200 REMOVAL CODE NAME ECP ECORP LIMITED ARL AUSTRIM NYLEX LIMITED SNX SECURENET LIMITED BDL BRANDRILL LIMITED ADDITION CODE NAME ION ION LIMITED HDR HARDMAN RESOURCES LIMITED UGL UNITED GROUP LIMITED SYM SYMEX HOLDINGS LIMITED S&P/ASX 300 (CURRENTLY 298) DELETIONS CODE NAME MLB MELBOURNE IT LIMITED CND CANDLE AUSTRALIA LIMITED HPL HP JDV LIMITED ETR ETRADE AUSTRALIA LIMITED CAG CAPE RANGE WIRELESS LIMITED WMT WESTERN METALS LIMITED ADDITIONS CODE NAME AAC AUSTRALIAN AGRICULTURAL COMPANY LIMITED DVC DCA GROUP LIMITED JFG JAMES FIELDING GROUP KCN KINGSGATE CONSOLIDATED NL OXR OXIANA RESOURCES NL VWD VILLA WORLD LTD NAL NORWOOD ABBEY LTD CST CELLESTIS LIMITED The changes will be reflected in the starting portfolio of Tuesday December 2, 2002. ================================ C H I N A & H O N G K O N G ================================ CLASSIC PASSION: Winding Up Sought By City Property --------------------------------------------------- City Property Management (H.K.) Limited is seeking the winding up of Classic Passion Limited. The petition was filed on October 26, 2001, and will be heard before the High Court of Hong Kong on January 30, 2002 at 9:30 am. City Property's registered office is located at Room 603, Shiu Lam Building, No. 23 Luard Road, Hong Kong. FAME WIN: Winding Up Petition Pending ------------------------------------- Fame Win Development Limited is facing a winding up petition, which is slated to be heard before the High Court of Hong Kong on January 30, 2002 at 11:30 am. The petition was filed on November 20, 2001 by Hong Kong Macau International Finance Company Limited (In Members' Voluntary Liquidation) whose registered office is situated at 48th Floor, Office Tower, Convention Plaza, 1 Harbor Road, Wanchai, Hong Kong. FAVRIT DEVELOPMENT: Hearing of Winding Up Petition Set ------------------------------------------------------ The petition to wind up Favrit Development Limited will be heard before the High Court of Hong Kong on December 19, 2001 at 9:30 am. The petition was filed on August 27, 2001 by Fong Sau Yiu of Flat A, 16th Floor, 120 Broadway, Mei Foo Sun Chuen, Kowloon, Hong Kong. GOLD ASSET: Winding Up Petition Hearing Set ------------------------------------------- The petition to wind up Gold Asset International Investment Limited was heard before the High Court of Hong Kong on December 12, 2001 at 11:00 am. The petition was filed on August 21, 2001 by The China State Bank Limited, Hong Kong Branch (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, Hong Kong. GOOD FIELD: Winding Up Petition Slated For Hearing -------------------------------------------------- The petition to wind up Good Field Industries Limited is scheduled for hearing before the High Court of Hong Kong on January 9, 2002 at 11:00 am. The petition was filed with the court on September 17, 2001 by Sin Hua Bank Limited, Hong Kong Branch (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, Hong Kong. HINET HOLDINGS: Issues Summary Results Announcement --------------------------------------------------- HiNet Holdings Limited announced on 13/12/2001: (stock codes: Ord: 155 & War: 1061) Year end date: 31/3/2002 Currency: HKD (Unaudited) (Unaudited) Last Current Corresponding Period Period from 1/4/2001 from 1/4/2000 to 30/9/2001 to 30/9/2000 ('000) ('000) Turnover : 5,133 10,830 Profit/(Loss) from Operations : (53,379) (24,061) Finance cost : (10,965) (1,117) Share of Profit/(Loss) of Associates : - 257 Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : (64,344) (24,990) % Change over Last Period : N/A EPS/(LPS)-Basic : ($0.006) ($0.003) -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : NIL NIL Profit/(Loss) after ETD Items : (64,344) (24,990) Interim Dividend per Share : NIL NIL (Specify if with other options) : N/A N/A B/C Dates for Interim Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period: N/A B/C Dates for Other Distribution : N/A Remarks: 1. Other net income Six months ended 30 September 2001 2000 $'000 $'000 Write-back of provisions in respect of a de-consolidated subsidiary 3,835 2,676 Net gain on debt waiver - 3,487 Written back of bad debts provision 745 - Loss on disposal of fixed assets (1,891) - Gain/(loss) on disposal of subsidiaries 1,130 (2,978) Others - 527 ----------------------- 3,819 3,712 2. Loss from ordinary activities before taxation Loss from ordinary activities before taxation is arrived at after charging/(crediting): Six months ended 30 September 2001 2000 $'000 $'000 (a) Net finance expenses/(income): Interest income (1,703) (1,143) ------- ------- Interest on bank loans and overdrafts and other loans repayable within five years 10,954 1,098 Finance charges on obligations under finance leases 11 19 ------- ------ 10,965 1,117 ------- ------ Net finance expenses/(income) 9,262 (26) ======= ====== (b) Other items: Cost of stocks - 251 Staff costs 7,988 9,085 Provision for diminution in value of investment securities 33,150 - Operating lease charges in respect of properties 3,037 2,324 Depreciation - owned fixed assets 7,169 9,873 - assets held under finance lease 52 70 3. Loss per share (a) Basic loss per share The calculation of basic loss per share is based on the Group's loss for the period of $64,344,000 (2000: $24,990,000) and on the weighted average number of 10,280,528,000 ordinary shares (2000: 8,874,166,000) in issue during the six months ended 30 September 2001. The weighted average number of shares outstanding for the six months ended 30 September 2000 has been retrospectively adjusted for the effects of the capital reorganization during the period ended 30 September 2001. (b) Diluted loss per share Diluted loss per share for both periods are not shown as the potential ordinary shares are anti-dilutive. NEW ATTITUDE: Petition To Wind Up Scheduled ------------------------------------------- The petition to wind up New Attitude (H.K.) Limited is set for hearing before the High Court of Hong Kong on December 19, 2001 at 10:00 am. The petition was filed on August 31, 2001 by J.V. Fitness Limited trading as California Fitness Centers of 9/F., The Lee Gardens, 33 Hysan Avenue, Causeway Bay, Hong Kong. PEARL ORIENTAL: Cites No Reasons For Share Volume Increase ---------------------------------------------------------- Pearl Oriental Holdings Limited noted the recent increase in the trading volume of the shares of the Company and stated that the Company is not aware of any reasons for such increase. The Company confirmed that there are no negotiations or agreements relating to intended acquisitions or realizations which are discloseable under paragraph 3 of the Listing Agreement, neither is the Board aware of any matter discloseable under the general obligation imposed by paragraph 2 of the Li sting Agreement, which is or may be of a price-sensitive nature. WAH LEE: Appoints Independent Non-Executive Directors ----------------------------------------------------- The Board of Directors (the Board) of Wah Lee Resources Holdings Limited (the Company) announced that Mr. TSO Shiu Kei Vincent and Mr. TAM Sun Wing have been appointed as independent non- executive directors and members of the Audit Committee of the Company with effect from 14 December 2001. On behalf of the Company, Chairman Zhang Yang, welcomed Mr. Tso and Mr. Tam to the Board. WAY PROPERTIES: Faces Winding Up Petition ----------------------------------------- The petition to wind up China Way Properties Limited is scheduled to be heard before the High Court of Hong Kong on January 2, 2002 at 10:00 am. The petition was filed with the court on September 5, 2001 by So Shiu Chuen, Steve of Room 1804, Eastern Harbor Center, 28 Hoi Chak Street, Wuarry Bay, Hong Kong. ================= I N D O N E S I A ================= SEMEN CIBINONG: Debt Restructuring Completed -------------------------------------------- Cement maker PT Semen Cibinong's endeavor to finalize plans to restructure its US$1.2 billion in debt has been concluded, giving way for a Swiss company to gain control of the Company, The Asian Wall Street Journal reported Monday. Holcim Ltd, which would own 75% of the Company, has meet all the required legal conditions set in the restructuring agreement approved by the shareholders on November 5. According to the Company's report to Jakarta Stock Exchange, after the November 5 meeting, Holcim said there had been "long and complex negotiations" with the main creditors on how to restructure the debts of the cement producer. The restructuring plan includes the conversion of blocks of debt into new shares and the injection of capital into the company by Holcim. PT Tirtamas Majutama, which owned 43% of Semen Cibinong as of June 30, will no longer hold any stake in the cement company. The collapse of the rupiah and the Indonesian economy in 1997 and 1998 left Semen Cibinong unable to pay its loans. In June this year, Semen Cibinong shareholders agreed to write off the deposits to help clear a path for a debt-restructuring plan that would put Holcim in control of the company. ========= J A P A N ========= HITACHI LIMITED: Moody's Confirms Debt Ratings, Outlook Negative ---------------------------------------------------------------- Moody's Investors Service has confirmed the A2 senior unsecured long-term debt rating of Hitachi, Ltd. (Hitachi), Hitachi Asia Ltd., Hitachi Finance (UK) Plc, and Hitachi International (Holland) B.V. The Prime-1 short-term rating of Hitachi, Ltd., Hitachi Asia Ltd. and Hitachi America Capital, Ltd. was also confirmed. The rating outlook for the A2 rating is negative. The ratings action concludes the review initiated by Moody's on October 31, 2001. The ratings confirmation reflects Moody's view that Hitachi will be able to keep its relatively sound financial profile, despite weakened profitability. The negative rating outlook reflects Moody's concern that Hitachi's implementation of its mid-term business plan may not be proceeding fast enough, considering risks of the world IT products and semiconductor markets further deteriorating. In November 1999, Hitachi introduced a mid-term business plan. The plan aims to strengthen solution providing business, while concentrating on selected hardware products where Hitachi has a strong presence. In August 2001, Hitachi announced that it would speed up implementation of the business plan, as well as introduce new restructuring measures, including reductions in procurement and fixed costs. The rating agency expects that recovery of Hitachi's profitability will be modest because of the severe deterioration in global IT products and the semiconductor market. Nevertheless, Hitachi should be able to keep its relatively sound financial profile and protection measurements for its bondholders. MITSUI LIFE: Plans Y900B Shares Sale By March 2004 --------------------------------------------------- Mitsui Life Insurance Co. plans to sell shares worth Y900 billion by March 2004, which will likely cut the proportion of shares in its asset portfolio to 8 percent from the current 15 percent. The move is aimed at strengthening the insurer's financial base against stock market fluctuations, the Wall Street Journal reported Sunday, which cited Yomiuri Shimbun. MUTUAL LIFE: Will Frontload Three-year, Y500B Plan -------------------------------------------------- Asahi Mutual Life Insurance Co. has decided to frontload a three-year Y500 billion plan, aimed at strengthening the insurer's financial base against stock market fluctuations, the Wall Street Journal reported Sunday, which cited Yomiuri Shimbun. TAISEI FIRE: Seeks Safety Net Operator Assistance ------------------------------------------------- Taisei Fire & Marine Insurance Co has asked the Non-Life Insurance Policy-Holders Protection Corp. of Japan to provide assistance so it can pay part of its obligations associated with its contracts, with the safety net operator expected to set a Y44 million quota to help Taisei pay insurance money stemming from its contracts mandating it pay maturity returns, Wall Street Journal reported Friday. Members of the safety net operator, a group of non-life insurers that contributes into a pool of reserves for insolvent insurers to ensure consumers' confidence in the industry, will hold this week an extraordinary plenary meeting to approve a proposal to set the quota. Allowing Taisei to tap into the quota is dependent on some upcoming developments, including whether Taisei will cut its guaranteed yields on its policies, and will be determined only when a corporate rehabilitation program, including a possible cut in the yield, is approved by the court on the basis of the special rehabilitation law for insurers. Taisei is Japan's 16th largest among 37 non-life insurers, with assets approaching Y411.4 billion. Its revenues from insurance premiums totaled Y88.7 billion in the year ended in March 2001. TAISEI FIRE: US Federal Court Grants Plea For Assets Protection --------------------------------------------------------------- Taisei Fire & Marine Insurance Co. said Friday that a U.S. federal court provisionally granted Thursday its plea for protection of its U.S. assets from creditors in connection with its November 22 failure, induced by huge insurance payouts associated with the September terror attacks in the U.S., Wall Street Journal reported Friday, which cited Kyodo. The Federal Bankruptcy Court also barred creditors from forcibly collecting the insurer's liabilities, while ordering Fortress Re Inc, the insurer's North Carolina-based reinsurance agent, to stop concluding new reinsurance contracts on its behalf. Taisei asked the Court in New York, Wednesday, to order its creditors to refrain from collecting debts and from seizing its U.S. assets, and to order its reinsurance agent to stop concluding any new reinsurance contracts. Taisei invoked a special rehabilitation law for insurers filing for insolvency proceedings due to massive claims stemming from the September 11 terrorist attacks in New York and Washington. According to the report, Taisei is estimated to have racked up a Y74.4 billion loss due to claim payouts from reinsurance contracts with U.S. casualty insurers in connection with the September 11 attacks. * November Bankruptcies Surge 10% To New High --------------------------------------------- The number of corporate bankruptcies last month rose to 1,683 or by 10 percent compared to the previous year earlier, setting a new record for the month of November in the postwar period, Japan Times reported Friday, which quoted credit-research agency Teikoku Databank Ltd Friday. The figure, the fifth worst for any month since the end of World War II, showed bankruptcies increasing year-on-year for the third straight month and staying above the 1,800 level for the second straight month, but November bankruptcies, however, were down 3.1 percent from the previous month. The bankruptcies included Tokyo Stock Exchange listed Taisei Fire & Marine Insurance Co and heavy-duty machinery maker Niigata Engineering Co, with liabilities of Y413.1 billion and Y227 billion respectively. The credit agency tracks failures of firms with debts of over Y10 million. A total of 1,419 bankruptcies, or 76.7 percent of the total, were linked to the recession, with the figure staying above the 75 percent level for the seventh straight month. Ninety-five firms filed for court protection from creditors under a civil rehabilitation law, while 458 of the companies declaring bankruptcy had been in business for 30 years or more, accounting for 24.7 percent of the total. By industry, bankruptcies marked a year-on-year increase in all sectors except retail, transport and telecommunications. Some 548 contractors went bust in November, up 2.2 percent, while bankruptcies by manufacturers surged 26.6 percent to 352, this year's high. The number of business failures by services companies shot up 40.5 percent to a record monthly high of 222. Nine companies in the food business went under in November in connection with concerns about beef safety in the wake of the mad cow disease outbreak in Japan in September. Combined debts in the reporting month, reportedly, soared 53.9 percent from a year before to Y1.88 trillion, the second-highest amount for the month since the end of the war. Teikoku said, "Corporate earnings have worsened and personal spending has slackened, accelerating the deflationary spiral in Japan." ========= K O R E A ========= DAEWOO MOTOR: Domestic Plants Resume Operation ---------------------------------------------- Domestic plants of Daewoo Motor were scheduled to resume operations Monday after last week's halt due to a debt dispute with parts suppliers, the striking subcontractors having agreed Saturday to temporarily end their boycott, the Korea Herald reported on December 17, citing company officials. The weeklong stop of operation was estimated to cost Daewoo Motor 5,500 vehicles, or W40 billion, in lost production. A spokesman for the parts suppliers said, "We decided to take more time to settle the debt dispute, out of concerns that a protracted paralysis of Daewoo plants would mean tremendous losses and risks for all interested parties, including the national economy. "But we will continue to press Daewoo creditors to settle the unpaid debts, prior to their signing of a formal takeover deal with General Motors. Otherwise, parts supplies will again be halted." DAEWOO MOTOR: GM Increasingly Wary On Planned Takeover ------------------------------------------------------ GM is allegedly turning increasingly wary of its planned takeover of four Daewoo plants. A top GM executive suggested late last week that cancellation of the Daewoo deal is possible, according to a December 17 Korea Herald report. GM Vice Chairman John Devine, in Detroit, said Friday that the U.S. automaker has reservations about the plan to complete the purchase of Daewoo by the end of this year. He said, "The deadline of Dec. 31 is unlikely to be met. The longer it takes the better, as we need more time to review Daewoo's finances and operations." DAEWOO MOTOR: Pays Back W46.6 Billion To Creditors -------------------------------------------------- Daewoo Motor, which posted an accumulated operating profit of W20.1 billion on turnover of W4.2 trillion in the first 11 months of this year, has implemented its first debt repayment since bankruptcy in late 1999, defusing some clouds looming over its planned takeover by GM. Daewoo, in a press release, said W46.6 billion of its debt load was paid back to creditors Saturday, Korea Herald reported on December 17. The press release said the W46.6 billion was part of the W77.8 billion, which Daewoo received last December in emergency rescue funding from local creditors. The company also forecasted of further repayments by the end of this month. "In November, Daewoo recorded 7.1 billion won in operating profit, staying in the black for the eighth consecutive month. Thus, the company's annual profit target of 1.8 billion won will be overachieved." DebtTraders reports that Daewoo Corporation's 0.000% in convertible bonds due in 2004 (DAEWC1) trades between 15.000 and 30.000. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=DAEWC1 DAEWOO MOTOR: Two Firms Bid For Busan ------------------------------------- Daewoo Motor's lead creditor Korea Development Bank said that two local companies have tendered bids to take over the ailing automaker's 5,000-unit-a-year bus plant in Busan. The bank will choose one of the two bidders as the preferential negotiator by December 22, the Korea Herald reported December 17. Sources reportedly said that Young An Hat Co. and unlisted Aju Industrial are the competing bidders. DAISHIN LIFE: FSC Censures 18 High-Level Employees -------------------------------------------------- The Financial Supervisory Commission (FSC) said Thursday it will censure 18 high-level Daishin Life Insurance employees. The company was designated as an insolvent financial institution in July and is currently undergoing a management normalization process. The employees are blamed for mismanagement that resulted in the firm's insolvency. Six were suspended from their duties, while four received official warnings of their conduct, Korea Herald reported Saturday. FSC said the management contracted loans exceeding the legally accepted limit for insurers between September of 1998 and November of 2000, while falsely recording W79 billion of subordinate loans as assets to render its solvency margin ratio higher. The insurer also illegally put aside W5.5 billion in recruiting allowance costs for 178 insurance contracts that were in fact not recruited by the insurer's registered insurance sellers, but the firm's corporate sales team. Pushing the company into deep trouble, it extended W11.7 billion of loans to six financially unstable firms in order to sell insurance to them, which resulted to W6.15 billion of bad debts for Daishin Life. FSC inspections between May and July this year showed that the insurance firm's liabilities exceeded its assets by W241.1 billion. Its total assets reached W924.5 billion, while its liabilities were recorded at W1.16 trillion. An FSC official said, "Daishin Life concentrated only on its external growth, thus incurring excessive administrative expenses, such as for scouting personnel and establishing new branches." HYUNDAI MOTOR: Management, Union Agree After Two-Day Full Strike ---------------------------------------------------------------- Hyundai Motor's union went on a full-scale two-day strike Friday, after carrying out a partial strike from November 29. The management and the union met Saturday to finalize their negotiations and agreed to reinstate 10 recently fired union workers, Korea Times reported Sunday. The meeting failed to narrow the gap on seven issues, including a wage increase, as the company reportedly expects record profits of W1.2 trillion this year. The management proposed an W88,000 increase in basic salary, a 300 percent bonus and some W700,000 in additional payment, but the union wants a W125,033 won increase in basic salary and a 568 percent bonus. The 40-hour workweek is also one of the key points that blocked an agreement. Immediate introduction of the system was pushed by the union to improve worker efficiency, but the management insisted on waiting until the government finishes the legal procedures before introducing the new work schedule. The company claimed a W500 billion loss in turnover due to the partial strike, and that an all-out strike would bring about an additional W60 billion loss per day. KOREA LIFE: Four Prospective Buyers Submit Bids ----------------------------------------------- The Korea Deposit Insurance Corp. (KDIC) said Sunday four prospective buyers for Korea Life Insurance Co. have presented their bids to the government, including a consortium of the Hanhwa Group and Orix of Japan, Metlife of the United States and two undisclosed foreign firms, the Korea Herald reported on December 17. One to two bidders will be chosen by the government this week to start negotiations on the sale of Korea Life. The purchaser, reportedly, will not be compensated for losses that arise after the sale, otherwise known as a put-back option. DebtTraders reports that Hyundai Motor's 7.330% bond due in 2005 (HMTR2) trades between 97.000 and 100.000. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=HMTR2 KOREA LIFE: Govt Won't Offer `Put-Back-Oprtion', Says Minister -------------------------------------------------------------- Minister of Finance and Economy Jin Nyum said Friday the government would not offer so-called "put-back options" to possible buyers of Seoul Bank, Korea Life Insurance, and that the government would not hurry to privatize the two financial institutions, Korea Herald reported Saturday. The statement was made after media reported that the government is likely to offer Seoul Bank and Korea Life Insurance buyers the option to sell some of the assets that turn into non-performing ones back to the government after acquisition. Jin said, "We will sell the stakes only when buyers offer reasonable prices." SAMSUNG GROUP: Affiliates Moving Offices To Bundang, Songnam ------------------------------------------------------------ Samsung Group affiliates are moving their trading, construction and home-building divisions to Samsung Plaza in Bundang, Songnam City, south of Seoul by next January, using the 8th to 20th stories of the building that are currently used by the R&D center of Samsung Electronics. The move is expected to save W10 billion a year in expenses, Korea Herald reported on December 17. Bundang already hosts seven state-run corporations and R&D centers of major private corporations, including SK Telecom and POSCO. Samsung SDS also plans to relocate its development team to Bundang in March next year, moving its 1,200 development work force to the World Shopping building in Bundang for the company to save W4-5 billion in rental fees. One or two more group affiliates are reviewing relocation to Bundang, a group official said. SSANGYONG CEMENT: Signs MOU To Sell 11% Stake In Ssangyong Fire --------------------------------------------------------------- Ssangyong Cement Industrial signed a memorandum of understanding (MOU) to sell its 11.1 percent stake in Ssangyong Fire and Marine Insurance for W12.4 billion as part of the company's restructuring plans, Korea Herald reported on December 17. Ssangyong Cement will sell the stake to Choong Ang Paper for W10,000 per share, with the definitive contract expected around December 27 upon the completion of a due diligence study on the non-life insurer. Ssangyong agreed in June to sell the stake to a local investment fund PCI Investec, but it scrapped the deal in October after the fund failed to make a pledged payment. DebtTraders reports that Ssangyong Cement's 0.250% bond due in 2005 (SSCEM) trades between 75.000 and 85.000. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=SSCEM =============== M A L A Y S I A =============== FEDERAL POWER: RAM Reaffirms RM50M RUNIF Rating At P3 ------------------------------------------------------ RAM has reaffirmed the short-term rating of Federal Power Sdn Bhd's (Federal Power) RM50 million Revolving Underwritten Notes Issuance Facility (RUNIF) at P3. The rating is premised on the implicit financial support from its major shareholder, Permodalan Nasional Berhad (PNB), without which the rating will come under pressure. Federal Power and its subsidiaries are involved in the manufacture and sale of a wide range of power cables and conductors for electrical transmission and distribution. Apart from the growth in electricity consumption, demand for power cables is largely influenced by the capital expenditure of utility giant, Tenaga Nasional Berhad (TNB). During the period under review, Federal Power remained highly dependent on its major customer, TNB, in spite of its management's aim to diversify into the overseas market. Plagued by downward pricing pressure and stiff competition in the power cable industry, Federal Power remained in the red for the third consecutive year in FYE 31 December 2000. Although the pressure from late payments by TNB had eased slightly, Federal Power's liquidity position remained tight, with a current ratio of 0.7 times. Given the Group's weak debt- servicing ability, RAM expects Federal Power to refinance its RUNIF, which will be maturing in September 2002, via external funds. KELANAMAS INDUSTRIES: Proposes Articles of Association Adoption --------------------------------------------------------------- Kelanamas Industries Berhad (KIB or the Company) announced that the Board of Directors of KIB proposed the adoption of a new set of Articles of Association for the Company in order to bring them in line with the Revamped Listing Requirements of the Kuala Lumpur Stock Exchange. A circular to shareholders in relation to the Proposed Amendments will be issued in due course upon confirmation in writing from the Kuala Lumpur Stock Exchange that is has no further comments thereon. The proposed amendments are subject to the approval of the shareholders of the Company at a general meeting to be convened at a later date. KIB also announced that the Kuala Lumpur Stock Exchange has approved an extension of three (3) months from 14 November 2001 to 13 February 2001 to enable KIB to announce its Requisite Announcement to the Exchange for public release. L&M CORPORATION: FIC OKs Proposed Restructuring Scheme ------------------------------------------------------ On behalf of Directors of L&M Corporation (M) Bhd (LMC or the Company), Affin Merchant Bank Berhad (formerly known as Perwira Affin Merchant Bank Berhad), announced that the Foreign Investment Committee (FIC) has approved the Proposed Restructuring Scheme pursuant to section 176 of the Companies Act, 1965, according to its letter dated 31 October 2001, which was received by the Company on 11 December 2001 subject to these conditions: 1. that the Company increases its Bumiputera equity shareholding to at least 30% before 31 December 2003; and 2. that the Company obtains Securities Commission approval. REKAPACIFIC BERHAD: KLSE To Delists Securities On December 26 ------------------------------------------------------------- The Board of Directors of RekaPacific Berhad (the Company) announced: 1. In a letter dated 12 December 2001, the Kuala Lumpur Stock Exchange informed the Board: i) After having considered all the facts and circumstances of the matter, which includes the Company's written and oral representations, and upon consultation with the Securities Commission, the Committee of the Exchange has decided not to allow the appeal of the Company. The Committee of the Exchange decided to maintain the penalty of de-listing in this matter. ii) The securities of the Company are to be removed from the Official List on 26 December 2001. iii) With respect to the securities of the Company, which are deposited with the Malaysian Central Depository Sdn Bhd (MCD), the securities of the Company will remain deposited with the MCD notwithstanding the de-listing. It is not mandatory for the securities of the Company to be withdrawn from MCD. Accordingly, the shareholders of the Company have the following options: a) To continue to deposit their securities with MCD; or b) To withdraw their securities from MCD at any time after the securities of the Company are removed from the Official List by submitting the application form for withdrawal in accordance with the procedures prescribed by MCD. Shareholders can contact any Member Company of the Exchange and/or MCD's helpline at 03- 20717711 or 03-20717763 for information on withdrawal procedures. The Board is presently considering its next course of action. TECHNOLOGY RESOURCES: SC Rejects Naluri's RM600M Investment ----------------------------------------------------------- The Securities Commission (SC) has rejected Naluri Bhd's revised bid to invest up to a maximum of RM600 million in Technology Resources Industries Bhd (TRI), The Edge Daily reported Friday. According to Naluri, the SC rejected the revised proposed subscription and proposed participation, as these proposals still did not contribute any cash return to Naluri. The SC said Naluri's proposals were insufficient to revitalize the business and performance of the company. Hence, the proposals did not comply with the condition imposed by the SC on Jan 17, in relation to the disposal of Malaysian Airline System Bhd (MAS). "There are uncertainties whether the proposed investment is sufficient to acquire new business which will contribute sufficient returns to revitalize the business and performance of Naluri and to support the paid-up share capital and position of Naluri as a listed company on the KLSE," SC cited. Under the revised proposal, which was made after the SC had on Oct 31 and announced on Nov 23, Naluri had proposed a maximum of RM600 million investment in TRI from its earlier cash subscription proposal of up to RM850 million. The revised proposal rejected Naluri's initial proposals to take up a restricted issue of up to RM850 million of the total RM1.05 billion and to subscribe for excess shares not taken up by TRI shareholders in its RM754.9 million one-for-one rights issue. ===================== P H I L I P P I N E S ===================== NATIONAL BANK: Sy, Alactara Considered For Prexy Post ----------------------------------------------------- International Exchange Bank Chair Ramon Sy and Philippine Bank of Communications President Isidro Alcantara are on the government's list of possible candidates for the Philippine National Bank President post, Inquirer News Service reported on December 17. Some directors and officers who would take the reins of PNB have been identified, according to the report. Meanwhile, Philippine Deposit Insurance Corp. President Norberto Nazareno said that next week the government and tobacco magnate Lucio Tan will sign a plan detailing the conversion plan for the 25-billion-peso emergency loan extended to PNB by PDIC and the Bangko Sentral ng Pilipinas late last year. Tan will choose a president from list of names submitted by the government, but it is the government that would nominate a chair of the board, chair of the executive committee, chief financial officer, corporate secretary and deputy general counsel. Tan will also have the right to appoint four members to the PNB board and one independent director as well as the general counsel, assistant corporate secretary and deputy chief finance officer. ================= S I N G A P O R E ================= CAPITALAND LIMITED: Unit Disposes Of Parkway Stake -------------------------------------------------- CapitaLand Limited announced that its indirect wholly-owned subsidiary, Premierhealth Investments Pte Ltd (PIPL), under CapitaLand Commercial Limited, has disposed of its entire stake in Parkway Holdings Limited, an SGX-listed and Singapore-based healthcare provider. Through this transaction, PIPL sold its 120,364,000 ordinary shares, representing a 16.7 percent interest in Parkway, for S$0.99/share. CapitaLand will recognize a gain of S$1.8 million. This disposal is in line with CapitaLand's strategy of divesting its non-core assets to focus on its core competencies. This transaction will have no material impact on earnings per share or net tangible assets at the group level for the financial year ending December 31, 2001. PANPAC MEDIA: New Subsidiary Accepts Strategic Investor's Offer --------------------------------------------------------------- The Board of Directors of Panpac Media.com Limited announced that a Malaysian-based strategic investor has offered to invest in a new Panpac subsidiary incorporated in Malaysia (Newco). The company has accepted the offer and has signed a Term Sheet with the Investor on December 12, 2001. The investment will be made, subject to terms and conditions in the Term Sheet, including the due diligence exercise to be conducted by the Investor on Newco, by: (a) The Investor will invest a total sum of RM1,800,000, of which: (i) the sum of RM600,000 will be invested in the purchase of 300,000 ordinary shares in Newco from Panpac Media (Malaysia) Sdn. Bhd. (PMM) at a price of RM2.00 per share; and (ii) the sum of RM1,200,000 will be invested by way of a subscription for 600,000 new ordinary shares in the capital of Newco at a price of RM2.00 per share, based on an agreed Newco valuation of RM9,000,000 between the parties. (b) PMM shall transfer its existing magazines publishing business (excluding non-magazines publishing business such as electronic media or Internet-based publishing) to Newco (Restructuring). Completion of the transaction is expected to take place for approximately 3 months. Completion is subject to the following conditions precedents set out in the Term Sheet: (a) the results of a due diligence review of Newco being satisfactory to the Investor; (b) the completion of the Restructuring of PMM being satisfactory to the Investor; and (c) the parties entering into definitive documentation for the proposed investment. The investment by the investor is line with our group's strategy to effect a divestment of our interests in PMM, in compliance with the regulations pertaining to foreign ownership of media companies in Malaysia. The investment by the Investor, if successful, will result in an increase of 16% in the net tangible assets per share of the Group from 2.4 cents to 2.8 cents, based on our interim results as at September 30, 2001. The investment is not expected to have any effect on the earnings per share of the Group in the current year. No director or substantial shareholder of the company has any interest, direct or indirect, in the investment. SEMBCORP LOGISTICS: The Capital Group Companies Changes Interest ---------------------------------------------------------------- Sembcorp Logistics posted a notice of changes in the deemed substantial shareholding of The Capital Group Companies, Inc as follows: Date of notice to company: 13 Dec 2001 Date of change of deemed interest: 12 Dec 2001 Name of registered holder: DBS Nominees 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: 300,000 % of issued share capital: 0.04 Amount of consideration per share excluding brokerage, GST, stamp duties, clearing fee: S$1.7170 No. of shares held before change: 55,984,400 % of issued share capital: 6.58 No. of shares held after change: 55,684,400 % of issued share capital: 6.54 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 88,345,200 % of issued share capital: 10.38 No. of shares held after change: 88,045,200 % of issued share capital: 10.34 Total shares: 88,045,200 =============== T H A I L A N D =============== CENTRAL PAPER: Releases 2002 Holidays ------------------------------------- Central Paper Industry Public Company Limited announced the 2002 holidays: Tuesday January 1st New Year's Day Wednesday January 2nd Substitution for New Year's Day Tuesday January 12th Chinese Festival Friday April 12th Songkran Festival Saturday April 13th Songkran Festival Monday April 15th Songkran Festival Tuesday April 16th Songkran Festival Wednesday April 17th Songkran Festival Wednesday May 1st National Labor Day Thursday July 25th Buddhist Lent Day Monday August 12th Her Majesty The Queen's Birthday Wednesday October 23rd Chulalongkorn's Day Thursday December 5th His Majesty The King's Birthday Wednesday December 28th Substitution for New Year's Eve Monday December 30th Substitution for New Year's Eve Tuesday December 31st New Year's Eve EASTERN PRINTING: Rehab Plan Final Hearing Set For January ---------------------------------------------------------- Eastern Printing Public Company Limited (EPCO) advised that at the Creditors' Meeting on December 12, 2001 at the Central Bankruptcy Court, the Creditors passed the Rehabilitation Plan. The Court set a final hearing for January 17, 2002 at 9.30 am. SANYO UNIVERSAL: SET Delists Securities December 20, 2001 --------------------------------------------------------- The Stock Exchange of Thailand (SET) has officially announced that Sanyo Universal Electric Public Company Limited (SUE) will be formally delisted from the SET from 20 December 2001 onwards. SUE's securities will be listed securities until 19 December 2001. The SET decision follows an earlier request from the management of SUE that the company be delisted. The SET has decided the company has fulfilled its obligations under the rules governing the delisting of securities. Therefore, the Board of Governors has approved the delisting of SUE 's securities as it requested by virtue of Section 171 (4) of the Securities and Exchange Act B.E. 2535 (1992). SIAMSTEEL GROUP: Business Reorganization Petition Filed In Court ---------------------------------------------------------------- The Petition for Business Reorganization of stock investor Siamsteel Group International Company Limited (DEBTOR) was filed to the Central Bankruptcy Court: Black Case Number 868/2543 Red Case Number 867/2543 Petitioner: SIAMSTEEL GROUP INTERNATIONAL COMPANY LIMITED Debts Owed to the Petitioning Creditor: Bt3,132,769,011.52 Planner: SiamSteel Planner Company Limited Date of Court Acceptance of the Petition: October 20, 2000 Date of Examining the Petition: November 20, 2000 at 9.00 A.M. Court Order for Business Reorganization and Appointment of Planner: November 20, 2000 Announcement of Court Order for Business Reorganization and Appointment of the Planner in Matichon Public Company Limited and Siam Rath Company Limited: November 27, 2000 Announcement of Court Order for Business Reorganization and Appointment of the Planner in Government Gazette: December 26, 2000 Deadline for Planner to submit the Business Reorganization Plan to Official Receiver: March 26, 2001 Planner postponed the Date of Submitting the Reorganization Plan #1: April 26, 2001 Planner postponed the Date of Submitting the Reorganization Plan #2: May 26, 2001 Appointment date for the Meeting of Creditors to consider the plan: June 29, 2001 at 9.30 am. Convention Room 1104, 11th Floor, Bangkok Insurance Building, South Sathorn Road The Meeting of Creditors had a resolution accepting the reorganization plan pursuant to Section 90/46 Court had issued the order accepting the reorganization plan July 20, 2001 and Appointed Siam Steel Planner Company Limited to be as a Plan Administrator Announcement of Court Order for accepting the Business Reorganization Plan and Appointment of the Plan Administrator in Matichon Public Company Limited and Siam Rath Company Limited: August 6, 2001 Announcement of Court Order for accepting the Business Reorganization Plan and Appointment of the Plan Administrator in Government Gazette: August 30, 2001 Contact: Mr. Tanawat Tel, 6792525 ext 123 THAI PETROCHEMICAL: Administrator Advises Reorg Plan Amendment -------------------------------------------------------------- Effective Planners Limited, Plan Administrator of Thai Petrochemical Industry Public Company Limited (TPI), announced that during the first year of TPI plan administration, the Plan Administrator has successfully achieved several significant objectives stated in the Business Reorganization Plan: 1) Completing the conversion of USD 756 million accrued interest to equity entitling creditors to 75% of TPI's expanded share capital. 2) Appointing Dr. Tongchat Hongladaromp as the President of TPI. 3) Establishing USD 79.67 million of working capital facility to allow additional utilization of production facility. 4) Continuously paying the interest to creditors on the Tier 1 portion of Scheme Debt. 5) Effecting payment of all interest outstanding in respect of the period up to 31 December 1997 to bring all creditors to a common starting position. 6) Reimbursing expenses of the informal steering committee of creditors incurred on behalf of all creditors in the restructuring of TPI. 7) Establishing and maintaining control of the operations of the TPI Group. However, because of factors outside of the Plan Administrator's control, one objective in the Plan has not been possible to achieve. That objective was to raise at least US$200 million in aggregate from the sale of Non-Core Assets, and apply the Net Proceeds in the reduction of TPI's debt by 31 December 2001 (Repayment Milestone). The global economic downturn, delay in recovery of the petrochemical industry cycle, delay in TPI Polene's capital increase from a new partner, and other external factors have contributed to the delay in TPI's Non-Core Assets sales program. The Plan Administrator has distributed a Special Report to Creditors with the unanimous support of the Milestone Date to 31 December 2002, or such later date as may be agreed by the Committee of Creditors. All Scheme Creditors will be requested to vote on two issues: 1) Since the failure to meet the Repayment Milestone mentioned above will constitute an Event of Default under the Plan, the Scheme Creditors will have to vote whether to take any action in respect of the Event of Default. 2) The Scheme Creditors will also vote whether to approve a postponement of the Repayment Milestone to 31 December 2002, or such later date as may be agreed by the Committee of Creditors. A voting request in respect of the Event of Default will be issued by Standard Chartered, the Facility Agent, on or about 7 January 2002. A meeting of the Scheme Creditors to vote on the second issue above is expected around the end of January 2002. The exact date and time will be announced later. The fact that the vote not to take any action in respect of the Event of Default and the vote to postpone the Repayment Milestone Date have the unanimous support of the Committee of Creditors, in its capacity as such, the Plan Administrator is confident that the Event of Default will not be called and that the Plan amendment will be approved by the creditors. In the meantime, the Plan Administrator still continues to implement the Plan and the proposed amendment will allow greater flexibility in the plan administration and operations of TPI. 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, 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 ***