/raid1/www/Hosts/bankrupt/TCRAP_Public/020116.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
Wednesday, January 16, 2002, Vol. 5, No. 11
Headlines
A U S T R A L I A
ASIA PACIFIC: Re-engineering Initiatives Successful
AUSTAR UNITED: Clarifies Australian Financial Review Article
EARTH SANCTUARIES: Undergoes Major Restructuring
GOODMAN FIELDER: Posts Daily Share Buy-Back Notice
IOCOM LIMITED: Geoffrey Guild Ceases To Be A Substantial Holder
NORMANDY MINING: Anglogold Will Not Increase Offer
NORMANDY MINING: Newmont Receives FIRB Acquisition Approval
C H I N A & H O N G K O N G
CIL HOLDINGS: Court Adjourns Winding-Up Petition To March 18
I-CHINANET.COM: Winding Up Petition To Be Heard
J.M.T. COMPANY: Winding Up Petition Set For Hearing
KEVIEW TECHNOLOGY: Winding Up Petition Scheduled Today
KING DRAGON: Winding Up Sought By Bank of China
WATSON COMPUTER: Hearing of Winding Up Petition Set
WELLRICH SHIPPING: Hearing of Winding Up Petition Set
WING LEE: Revises Rights Issue Timetable
I N D O N E S I A
LONDON SUMATRA: In Debt Restructuring Talks With Creditors
SORBITOL INTI: US$137M Debt Restructuring Completed
TRI POLYTA: Seeks To Restructure US$277.09M Debt
J A P A N
DAIEI INC: Books US$911M Loss, Stores Closure Seen
DAIEI INC: Govt Considers Accepting Bailout Plan
GAP (JAPAN): Moody's Lowers Senior Unsecured Rating To Baa3
TAIHEIYO COAL: Union Accepts Closure Terms
K O R E A
HYNIX SEMICONDUCTOR: Launches STN-LCD JV With Semicon, Dongfang
HYNIX SEMICONDUCTOR: Deal With Micron Likely To Drag Slightly
HYUNDAI MERCHANT: Selling Three Ports For US$2M
MITSUBISHI ELECTRIC: Slashes 2,000 Jobs At Domestic Factories
M A L A Y S I A
AUTOINDUSTRIES VENTURES: Posts Defaulted Payment Details
HAI MING: KLSE OKs Financial Regularization Time Extension
INSTANGREEN CORPORATION: LGBS Offer For Sale Oversubscribed
MAY PLASTICS: Obtains KLSE's Financial Report Submission Waiver
MBF HOLDINGS: SC Approves Proposed Schemes Of Arrangement
MTD CAPITAL: Gets SC's Nod On Proposals
OLYMPIA INDUSTRIES: Unit Issues Add'l Winding Up Petition Info
PROJEK USAHASAMA: Defaults RM2BCommercial Financing Facilities
REKAPACIFIC BERHAD: Adrian Yeo & Co. Replaces PwC As Accountant
P H I L I P P I N E S
BENPRES HOLDINGS: Unit Maynilad Water Cannot Pay US$100M Debt
COSMOS BOTTLING: SMC Buying Minority Shares For P6.045 Each
NATIONAL STEEL: Government Orders Foreclosure
NATIONAL STEEL: Union Against Govt Foreclosure Decision
REYNOLDS PHILIPINES: LBP Seeks Foreign Investors To Manage Co
S I N G A P O R E
ADROIT INNOVATIONS: Completes Payment Solutions Share Sale
ACMA LTD: Issues Profit Warning
TONG MENG: Seeks Voluntary Delisting
VIKAY INDUSTRIAL: Resumes Trading On January 15
T H A I L A N D
DATAMANT PUBLIC: Decreases Par-Value; Re-elects Directors
SINO-THAI ENGINEERING: Posts Capital Increase Report Form
SRITHAI SUPERWARE: Implements Q3 Business Reorganization Plan
T.C. ALPHA: Files Business Reorg Petition In Bankruptcy Court
THAI HEAT: Creditors Approve Rehabilitation Plan Amendments
THAI PETROCHEMICAL: Appoints Ex-Govt Housing Bank Pres As CFO
- - - - - - - -
=================
A U S T R A L I A
=================
ASIA PACIFIC: Re-engineering Initiatives Successful
---------------------------------------------------
Asia Pacific Specialty Chemicals reported that its company re-
engineering initiatives announced after the removal of the
previous Board at the EGM on June 29, 2001 have been successful
earlier than expected. The results for the APS company, which
were scheduled towards the middle of 2002, have in fact occurred
during the latter half of 2001.
The essential highlights of the turnaround in the second half
are:
* EBITDA before costs of redundancies, non-cash asset
writedowns, and EGM Costs is up 92 percent from $2,458,955 in
the first half of 2001 to $4,710,019 in the second half based on
sales in the second half which were down slightly (0.3 percent)
to $90,609,581;
* Cash flow for the second half is up 728 percent from
$621,000 to $5,146,000. This excellent cash flow was achieved
even though $1,735,982 was spent undertaking an extensive
redundancy programmed;
* Employees are down 10 percent from 403 to 361 in the second
half, which will generate on going cost savings of $3.3 million
per annum.
* Net borrowings have been reduced by over $5 million from
$27,167,000 in the first half to $22,021,000 (down 19 percent)
in the second half;
* Working Capital Reduction Programmed, which was implemented
by the Board, has yielded excellent results with $5,977,000
being reduced from working capital in the second half year (up
160 percent from previous reduction of $2,289,000).
As envisaged, the Board is completing its review of non-cash
asset writedowns, and information of this will be made available
as soon as possible. The results at this stage are unaudited.
The trading conditions experienced during the second half were
in line with that expected by the new Board, and it is
anticipated that the trading conditions should remain constant
with some small amount of upswing likely. The results are in
line with the announcement made by the new Board on the 24th of
July 2001.
The Board of APS is very pleased with the results, and would
like to thank all the employees at APS that have made this
result possible. Details of the EBITDA before redundancies,
asset writedowns and EGM costs by quarter are:
FIRST HALF SECOND HALF FULL YEAR
$000
Qtr1 1,446
Qtr2 1,013
Qtr3 2,154
Qtr4 2,556
TOTAL 2,459 4,710 7,169
According to Corporate Information Service, "during the 12
months ending 6/30/01, the company has experienced losses
totaling A$0.14 per share. These 12 month earnings are lower
than the earnings per share achieved during the last fiscal year
of the company, which ended in December of 2000, when the
company reported earnings of -0.09 per share. This company has
paid no dividends during the last 12 months. The company also
reported losses during the previous 12 months."
AUSTAR UNITED: Clarifies Australian Financial Review Article
------------------------------------------------------------
Austar United Communications Limited advised that a story in the
Australian Financial Review published Tuesday entitled, "Austar
Rollover Deal Believed To Be Close" is not based on any
information provided by Austar.
In relation to the refinancing of its $400 million debt facility
Austar reiterates that its is working cooperatively with its
banks to finalize the refinancing and that the company remains
confident it will succeed in achieving this outcome. Austar will
inform the market as soon those negotiations have been
concluded.
In relation to speculation concerning Austar's full year result,
the company notes that it reports its results to the market on a
quarterly basis, that the 2001 result has yet to be finalized
and will be released once its has been audited and approved by
the Austar board. Austar anticipates that this will happen in
the usual course in early to mid March 2002.
EARTH SANCTUARIES: Undergoes Major Restructuring
------------------------------------------------
The Board of Earth Sanctuaries Ltd (ESL) announced that it
intends to undertake a major restructuring of the Company in
order to enhance and to preserve shareholder value.
ESL while continuing to make substantial gains towards achieving
its conservation goals is not generating the positive financial
returns it would like to achieve. The two key issues for the
Company are its current cost structure and improving the returns
it generates from the properties it owns. With assets of $15
million excluding fauna (valued at $5 million), ESL is asset
rich but income poor.
The first step in the restructuring will involve the
commencement of a significant program of cost reductions. A
major program of asset sales is also being initiated.
Expressions of interest are sought on all of ESL's assets. If
interest is expressed in acquiring all the shares in ESL this
will also be considered by the Board.
The Board is concerned with the welfare of the thousands of rare
and endangered native animals in the Company's sanctuaries.
Consideration will be given at all times to their welfare.
All trading operations at Warrawong, Yookamurra, Scotia and
Hanson Bay will continue as normal.
As part of the scaling down process, the current Chairman, Dr
Don Stammer and the Chief Executive Officer, Dr Wendy Craik,
will be leaving the Company. Dr Stammer, who has been Chairman
since 1999, has indicated that he intends to retain his
shareholding.
Mr Kevin Lynch, a non-executive Director, has been appointed
Chairman of the Board and Dr John Wamsley will resume his
previous role of Managing Director. Mr Lynch and Dr Wamsley
thanked Dr Stammer and Dr Craik for their contributions to the
activities of ESL.
The Board believes that the process of asset sales is likely
both to improve ESL's future financial performance and to
facilitate some crystallization in value for shareholders above
that currently reflected in ESL's trading price.
Challenger Corporate finance has been retained by the Board to
assist the asset sales and the resulting restructure of ESL.
For further information contact:
Dr John Wamsley Greg Follent
Earth Sanctuaries Ltd Challenger Corporate Finance
Telephone: +61 8 8370 9422 Telephone: +61 2 9994 7530
After Hours: +61 8 8370 8387 Mobile: 0417 224 072
Mobile: 0407 716 074
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
ACN or ARBN
44 000 003 058
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
ASX Tuesday
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 20,182,636 25,115
back or if buy-back is
an equal access scheme,
in relation to which
acceptances have been
received
$ $
4. Total consideration paid 26,911,249 37,924
or payable for the shares
5. If buy-back is an on-market
buy-back
Highest price paid Highest price paid
$1.38 $1.51
Date: -
Lowest price paid Lowest price paid
$1.30 $1.51
Date: -
Highest price
allowed under rule
7.33:
$1.5792
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 52,792,249
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.
The Company announced last month to the market that its
Strategic Action Plan is on track and early signs indicate that
the performance is improving. The Strategic Action Plan, which
the Company is aggressively pursuing, focuses on our strong
retail branded products and on simplifying and streamlining our
business to improve returns to shareholders.
IOCOM LIMITED: Geoffrey Guild Ceases To Be A Substantial Holder
---------------------------------------------------------------
Geoffrey Guild Hill and Associates ceased to be a substantial
shareholder in IOCOM Limited on 11/January/2002.
December last year, TCR-AP quoted Chairman Scott Brown's AGM
address to shareholders, stating that "the financial year ended
30 June 2001 was a difficult one for Iocom. The Company recorded
operating losses of $7.3 million and one off abnormal items of
$5.4 Million. The result is completely unacceptable and greatly
disappoints the Board."
NORMANDY MINING: Anglogold Will Not Increase Offer
--------------------------------------------------
Newmont has raised objections in the Takeovers Panel regarding
certain aspects of AngloGold's notice extending the offer period
in its bid for Normandy.
Following discussions with the Panel, AngloGold has confirmed
Tuesday that its offer for Normandy will not be increased.
AngloGold's Chairman and CEO, Bobby Godsell said: "Our offer
will not be increased. We have been very disciplined and taken
great care to justify our previous increases, but there is no
basis on which we could justify a further increase in the offer.
The market has already judged AngloGold's offer to be a full and
fair price."
In AngloGold's 11 January 2002 press release, it stated that
Newmont's stock price had fallen by 11 percent since AngloGold
announced its bid for Normandy (on 5 September 2001). In fact,
the Newmont stock price has fallen by 10 percent compared to the
price immediately before Newmont, not AngloGold, announced its
bid for Normandy (on 14 November 2001).
AngloGold's offer is open and available for immediate
acceptance, with payment within 3 days of acceptance. The offer
is scheduled to close at 7:00pm Sydney time on Friday, 18
January 2001.
NORMANDY MINING: Newmont Receives FIRB Acquisition Approval
-----------------------------------------------------------
Newmont Mining Corporation (NYSE: NEM) announced Monday that it
has received approval from Australia's Foreign Investment Review
Board (FIRB) for its acquisition of Normandy Mining Limited
(ASX:NDY). The approval was granted on the basis that:
* Newmont adheres to its undertaking regarding Normandy's
commitment to Australian Magnesium Corporation Limited,
* Newmont/Normandy maintains a corporate headquarters in
Australia, and
* Newmont/Normandy maintains a listing on Australian Stock
Exchange
all of which are consistent with Newmont's strategic plans.
Newmont Chairman, President and Chief Executive Officer Wayne W
Murdy said, "We have now received another significant regulatory
approval in relation to our acquisitions of Normandy and Franco-
Nevada Mining Corporation Limited. The formal approval from FIRB
of our investment in Normandy, together with last week's SEC
declaration of effectiveness of our registration statements,
should remove any doubt as to our ability to complete the
Normandy bid and acquisition of Franco-Nevada by mid-February."
Shareholders should obtain current quotes for the Newmont,
Normandy and AngloGold shares.
IMPORTANT NOTICE
Although the Normandy Board, subject to its fiduciary duties,
has recommended Newmont's offer to Normandy shareholders,
Normandy has not provided unqualified assistance to Newmont in
making its offer. Among other things, Normandy has refused to
provide Newmont with certain financial information, and it has
not permitted its auditors to issue a consent in respect of
financial information relating to Normandy.
================================
C H I N A & H O N G K O N G
================================
CIL HOLDINGS: Court Adjourns Winding-Up Petition To March 18
------------------------------------------------------------
CIL Holdings Limited (the Company), in reference to the
announcement made by the Company on 8th October, 2001 in
relation to the winding-up petition (the Petition) served
against the Company, and Star Dragon Securities Limited as the
substituted petitioner, announced that during the hearing of the
Petition held on 14th January, 2002, the Company has made an
application to the High Court of Hong Kong for an adjournment of
the Petition for a period of approximately 2 months to allow the
Company to prepare the required documents for the schemes of
arrangement to the creditors of the Company and apply to the
High Court of Hong Kong and the Supreme Court of Bermuda to
sanction the schemes under section 166 of the Companies
Ordinance and section 99 of the Companies Act 1981 of Bermuda
respectively.
The High Court of Hong Kong made an order to adjourn the
Petition to 18th March, 2002. In this connection, further
announcement will be made as and when necessary.
Trading in the shares was suspended from 10:00 a.m. on 14th
January, 2002 at the request of the Company pending release of
this announcement and application has been made to the Stock
Exchange for the resumption of trading of the shares from 10:00
a.m. on 15th January, 2002.
I-CHINANET.COM: Winding Up Petition To Be Heard
-----------------------------------------------
The petition to wind up I-Chinanet.Com Holding Limited is
scheduled for hearing before the High Court of Hong Kong on
January 23, 2002 at 10:00 am. The petition was filed with the
court on October 19, 2001 by Tan Meng Dong of 11 Boon Teck Road,
#07-02, Singapore 329585.
J.M.T. COMPANY: Winding Up Petition Set For Hearing
---------------------------------------------------
The petition to wind up J.M.T. Company Limited is set for
hearing before the High Court of Hong Kong on January 16, 2002
at 9:30 am. The petition was filed with the court on September
21, 2001 by China Merchants Bank whose principal place of
business is situated at China Merchants Tower, No. 7088 Shennan
Boulevard, Shenzhen, The People's Republic of China.
KEVIEW TECHNOLOGY: Winding Up Petition Scheduled Today
------------------------------------------------------
The petition to wind up Keview Technology (BVI) Limited is
scheduled to be heard before the High Court of Hong Kong today,
January 16, 2002 at 10:00 am.
The petition was filed with the court on October 8, 2001 by The
Hongkong and Shanghai Banking Corporation Limited whose
principal place of business in Hong Kong is at 1 Queen's Road
Central, Hong Kong.
KING DRAGON: Winding Up Sought By Bank of China
-----------------------------------------------
Bank of China (Hong Kong) Limited is seeking the winding up of
King Dragon Property Limited. The petition was filed on
September 12, 2001, and was heard before the High Court of Hong
Kong on January 9, 2002.
Bank of China (Hong Kong) Limited (the successor corporation to
Sin Hua Bank Limited pursuant to Bank of China (Hong Kong)
Limited (Merger) Ordinance (Cap. 1167) holds its registered
office at 14th Floor, Bank of China Tower, 1 Garden Road,
Central, Hong Kong.
WATSON COMPUTER: Hearing of Winding Up Petition Set
---------------------------------------------------
The petition to wind up Watson Computer Limited is scheduled to
be heard before the High Court of Hong Kong on February 6, 2002
at 10:00 am. The petition was filed with the court on December
7, 2001 by the Company whose registered office is situated at
Flat 4, 19th Floor, Block B, Yee Hong House, Hong Wah court, No.
2 Lin Tak Road, Kwun Tong, Kowloon, Hong Kong.
WELLRICH SHIPPING: Hearing of Winding Up Petition Set
-----------------------------------------------------
The petition to wind up Wellrich Shipping Limited was 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 19, 2001 by
Bank of China (Hong Kong) Limited (the successor corporation to
The Yien Yieh Commercial Bank Limited pursuant to Bank of China
(Hong Kong) Limited (Merger) Ordinance (Cap. 1167) of 14th
Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong.
WING LEE: Revises Rights Issue Timetable
----------------------------------------
Wing Lee Holdings Limited (the Company) informed that on 14
January 2002, the Company, the Underwriter, Chow Tak Hung, Chow
Woon Yin and Wong Siu Wah entered into a supplemental
underwriting agreement to revise the timetable for the proposed
Rights Issue in order to allow more time for the independent
financial adviser to prepare its letter to the Shareholders and
the preparation and dispatch of the circulars to the
Shareholders. The timetable of the Rights Issue would be revised
as:
Dispatch of the Rights Issue circular 21 January 2002
Last day of dealings in Shares on a cum-rights 28 January 2002
basis
First day of dealings in Shares on an ex-rights 29 January 2002
basis
Latest time for lodging transfer of Shares in
order to qualify for the Rights Issue 4:00 p.m. 30 January 2002
Register of members closes 31 January 2002-
8 February 2002
Latest time for return of proxy form for
the SGM 9:00 a.m. on 6 February 2002
The SGM 9:00 a.m. on 8 February 2002
The Record Date 8 February 2002
Dispatch of Rights Issue prospectus, 8 February 2002
provisional allotment letters
and excess application forms
Register of members re-opens 11 February 2002
First day of dealings in nil-paid Rights Shares 18 February 2002
Latest time for splitting nil-paid
Rights Shares 4:00 p.m. on 21 February 2002
Last day of dealings in nil-paid Rights Shares 26 February 2002
Latest time for payment and acceptance
of Rights Shares 4:00 p.m. on 1 March 2002
Latest time for the Rights Issue 4:00 p.m. on 6 March 2002
to become unconditional
Announcement of results of the Rights Issue 7 March 2002
on newspapers
Dispatch of refund cheques in respect of 8 March 2002
unsuccessful or partially unsuccessful excess
applications posted on or before
Dispatch of certificates for fully paid Rights 8 March 2002
Shares on or before
First day of dealings in Rights Shares 12 March 2002
=================
I N D O N E S I A
=================
LONDON SUMATRA: In Debt Restructuring Talks With Creditors
----------------------------------------------------------
PT London Sumatra Indonesia Tbk (Lonsum) is still in
negotiations with its creditors for about 96 percent
restructuring of its total debts, IndoExchange reports,
referring to Corporate Secretary Beny Haryanto's statement to
Jakarta Stock Exchange (JSX).
The plantation firm used the Jakarta Initiative Task Force
(JITF) as mediator in the negotiations with its creditors. The
company has reached an agreement to restructure 4 percent of the
total debt through cash payment.
According to Haryanto, the Company owes US$152 million to
overseas creditors, consisting of US$122 million bank loans and
US$30 million notes payable, while some US$17.4m to local
creditors, which consists of US$10 million notes payable and
US$7.4 million leasing.
SORBITOL INTI: US$137M Debt Restructuring Completed
---------------------------------------------------
PT Sorbitol Inti Murni Corporation Tbk (Sorini) had finalized
the restructuring of its US$137 million debt with its creditors,
through debt buy-back with an 82 percent haircut, effective
since December 27, 2001, IndoExchange reported Monday.
Sorini, Indonesia's biggest sorbitol producer, is one of 54
listed companies in the Jakarta Stock Exchange that undergoes
debt restructuring through Jakarta Initiative Task Force (JITF).
"Following restructurization, the total debt owed by the company
to bank amounts at Rp161 billion," the company stated.
Currently, the composition of Sorini Corp's ownership is 65.13
percent or 117.23 million shares held by founding holders, and
34.87 percent or 62.77 million shares held by the investing
public. The company's founding holders are Artha Kencana
Rayatama, who has 58.20 percent shares and PT Garama Pancamurni,
which holds 6.90 percent.
TRI POLYTA: Seeks To Restructure US$277.09M Debt
------------------------------------------------
Petrochemical company PT Tri Polyta (TPIA) is currently
negotiating with its creditors to restructure US$227.09 million
of debt including interest amounting to US$42.09 million,
IndoExchange reports, citing Company Director Suryadi.
"The company proposed through the Jakarta Initiative task Force
(JITF) as the mediator a cut in both principal and interest, and
extension of maturity date," he said.
Suryadi added the company's debt include bonds maturing in 2003
with coupons overdue since June and December 1999.
According to DebtTraders, Tri Polyta's 11.375% bond due on 2003
(TRIPOLY) trades between 28 and 33. Go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=TRIPfor
real-time bond pricing.
=========
J A P A N
=========
DAIEI INC: Books US$911M Loss, Stores Closure Seen
--------------------------------------------------
Troubled Japanese retailing giant Daiei Corp. is expected to
book an extraordinary loss of US$911 million and shut down 50
loss-making stores within a year, Channel News Asia reported on
Tuesday. Daiei is expected to register a one-time extraordinary
loss of Y100 billion to Y120 billion as a result of the planned
closure of loss-making stores. The closure would result in labor
surplus of 1,500 workers.
The Financial Daily said Daiei is expected to cut individual
employees work hours in order to secure as many jobs as possible
in a scheme called work sharing. The company is still working
out the three-year restructuring plan with its four main
creditor banks, including debt waivers and debt equity swaps, to
meet its aim of reducing group interest-bearing debt worth Y2.3
trillion.
DAIEI INC: Govt Considers Accepting Bailout Plan
------------------------------------------------
The Ministry of Economy, Trade and Industry plans to accept an
application from struggling supermarket chain, Daiei Inc.
concerning the industrial revitalization law aimed at bailing
out firms with debts and excess facilities, Kyodo News reports.
Daiei Inc, which aims to cut its group interest-bearing debts by
Y750 billion by February 2005, is in talks with its main
creditor banks, Sanwa Bank, Fuji Bank, Tokai Bank and Sumitomo
Mitsui Banking Corp on the debt-reduction plan and is expected
to reach a conclusion on the plan within the next week.
GAP (JAPAN): Moody's Lowers Senior Unsecured Rating To Baa3
-----------------------------------------------------------
Moody's Investors Service lowered Monday the long and short term
ratings of Gap Inc. to Baa3/Prime-3 respectively and left the
ratings on review for further possible downgrade. Ratings
lowered and continuing on review for possible downgrade:
Gap Inc.
* Senior unsecured intermediate term Notes issued under Rule
144A to Baa3 from Baa2.
* Senior unsecured notes to Baa3 from Baa2.
* Commercial paper and extendible commercial notes to Prime-3
from Prime-2.
Gap (Japan) K.K.
* Senior Notes, guaranteed by Gap Inc., to Baa3 from Baa2.
Gap International B.V.
* Eurobonds, guaranteed by Gap Inc., to Baa3 from Baa2.
The rating action is based on the ongoing decline in Gap Inc.'s
financial performance and the expectation that the company will
be challenged in the current operating environment to generate
significant and sustainable improvement in sales and
profitability in 2002.
The rating agency's continuing review, which is focused on Gap
Inc.'s initiatives to boost sales and profitability in its
concepts, primarily Old Navy and Gap adult, will assess the
likelihood that these initiatives will generate operating
performance and credit measures consistent with an investment
grade rating over the near to intermediate term. Moody's will
also consider the company's capital expenditure programs and
plans to refinance its bank facilities that mature in June 2002.
Gap Inc., headquartered in San Francisco, operates about 4179
stores in the U.S., Canada, the U.K., France, Germany and Japan
and an internet business.
TAIHEIYO COAL: Union Accepts Closure Terms
-------------------------------------------
The labor union at Taiheiyo Coal Mine Co has agreed Monday to
accept terms offered by the management for the mine's closure on
January 30, Kyodo News reported Monday.
The company's management informed the labor union last month
that the company would shut down due to the difficult business
climate. Union members, at a meeting in Kushiro in eastern
Hokkaido, approved of the decision.
=========
K O R E A
=========
HYNIX SEMICONDUCTOR: Launches STN-LCD JV With Semicon, Dongfang
---------------------------------------------------------------
Hynix Semiconductor and Semicon Engineering and China's Dongfang
Electronics jointly launched an STN-LCD maker, called Hyundai
LCD on Monday, Digital Chosun reported on January 14. The
Chinese company contributed a 45 percent stake in the joint
venture based in Korea, while Semicon 35-percent, Hynix 15
percent and the staff of Hyundai LCD 5 percent.
Company officials stressed that Hyundai LCD visualizes sales of
W250 billion for 2002 by focusing its sales on China's STN-LCD
market for mobile sets and PDAs, on top of the markets in the
United States and Europe. The firm also plans to set up a
production plant in China soon.
Hynix, which had total liabilities reaching US$9.1 billion 10
2000 compared to its total assets of US$1.4 billion, posted W1
trillion in operational losses last year.
HYNIX SEMICONDUCTOR: Deal With Micron Likely To Drag Slightly
-------------------------------------------------------------
Hynix Semiconductor is aiming to conclude a strategic alliance
agreement with Micron before the end of January, but the
schedule may be changed slightly, depending on how the two
firms' further negotiations to narrow their differences go,
Digital Chosun said on Sunday.
Hynix President Park Jong-sup said that the US chipmaker has in
fact come up with specific proposals for the deal, but that he
would rather not unveil them at the moment. Hynix and Micron
completed their third round of negotiations on the proposed
alliance deal in Seoul last week, and this week working level
discussions will take place between the firm's financial
advisors.
Meanwhile, the debt-ridden Korean memory manufacturer, will
reopen its Oregon DRAM plant this week, the Register reported in
its January 14 edition. The plant has been rekitted to make
256Mb DRAM previously it made 64Mb parts. The upgrade is
representative of a move by major DRAM makers to mainstream on
256Mb production, as the market moves to high-end PC production.
HYUNDAI MERCHANT: Selling Three Ports For US$2M
-----------------------------------------------
Hyundai Merchant Marine (HMM) is going to sell its three
exclusive ports within the week for US$200 million, including
one in Busan, as part of its self-rescue effort, Korea Herald
reported Tuesday, citing a creditor of the shipping firm. HMM
will first use the proceeds from the terminal sales to repay a
bridge loan worth W100 billion from Korea Development Bank.
Hutchison Port Holdings of Hong Kong and the Peninsular and
Oriental Steam Navigation Co. (P&O) of Britain are among the
expected foreign buyers, which are expected to raise their bids
at the last minute.
At the end of 2000, HMM had negative working capital, as current
liabilities were W3.25 trillion, while total current assets were
only W1.88 trillion.
MITSUBISHI ELECTRIC: Slashes 2,000 Jobs At Domestic Factories
-------------------------------------------------------------
Mitsubishi Electric will slash 2,000 jobs at domestic factories
by the end of March due to weak demand for semiconductor
products, AFP and The Times of India reported Tuesday. The
electrical equipment maker plans to reduce 1,000 jobs in the
year to March 2002 and an additional 1,000 jobs by March 2003,
but decided to move the restructuring forward. The job cuts will
only affect workers with temporary contracts lasting several
months.
"We decided to accelerate our measures to lift us out of the
current (information technology) slump as soon as possible," a
company spokesman said.
The firm, which employs a total 11,000 full-time staff and
contract workers on a consolidated basis in Japan, has total
liabilities of US$27.3 billion as of March 2001 compared to
total assets of US$33.1 billion.
===============
M A L A Y S I A
===============
AUTOINDUSTRIES VENTURES: Posts Defaulted Payment Details
--------------------------------------------------------
Autoindustries Ventures Berhad's default in payments as at 14
January 2002 stands at:
Name of Creditor Principal(RM) Interest(RM) Total(RM)
i) Pacven Walden Ventures Kedua III L.P.
2,902,570.00 1,178,102.00 4,080,672.00
ii) BI Walden Ventures Kedua Sdn Bhd
1,069,577.00 434,120.00 1,503,697.00
iii) Financial Institutions
1,280,227.95 182,657.97 1,462,885.92
__________ ___________ __________
TOTAL 5,252,374.95 1,794,879.97 7,047,254.92
========== ============ ==========
a) The reasons for the default in payments and the measures to
be taken by the Company are as announced on 14 December 2001.
The Proposed Restricted Issue of up to 13,000,000 new ordinary
shares of RM1.00 each in the Company at a proposed issue price
of RM1.00 per share for cash and proposed issue of 2,000,000 new
ordinary shares of RM1.00 each to BI Walden Ventures Kedua Sdn
Bhd and Pacven Walden Ventures III L.P. at a proposed issue
price of RM1.00 per share as part settlement of the amount due
which was announced to the Kuala Lumpur Stock Exchange on 14
December 2001 is expected to be completed by 2nd Quarter 2002.
b) There should not be financial and legal implications in
respect of the default in payments including the extent of the
Company's liability in respect of the obligations incurred under
the agreements for the indebtedness as the Management is
currently negotiating with the lenders on the rescheduling of
payment terms through the Proposed exercise.
c) The Management is of the opinion that the default in payments
should not constitute any event of default under a different
agreement for indebtedness (cross default) due to the
Management's initiative as indicated in Paragraph (b) above.
HAI MING: KLSE OKs Financial Regularization Time Extension
----------------------------------------------------------
Public Merchant Bank Berhad (PMBB), on behalf of the Board of
Hai Ming Holdings Berhad (HMHB or the Company), announced that
the KLSE has approved the extension of time to submit the
Company's plans to regularize its financial condition to 7
January 2002 for the Company to comply with paragraph 5.1(b) of
PN4 through KLSE's letter dated 14 January 2002 [Ref:
KLSE/FRS/PLCs. H12(6)]
Notwithstanding this, the Company has submitted its plans to
regularize its financial condition to the relevant authorities
for approvals. As required by PN4, the Company must obtain all
the necessary approvals for the implementation of its plans
within four (4) months from the date of submission of such plans
for approval.
INSTANGREEN CORPORATION: LGBS Offer For Sale Oversubscribed
-----------------------------------------------------------
Arab-Malaysian Merchant Bank, being the Adviser for Instangreen
Corporation Berhad (Special Administrators Appointed)(ICB)
and LBS Bina Group Berhad (LBGB), announced that the LBGB's
Offer for Sale has been oversubscribed by 47.47 times and the
Placement has been fully subscribed.
The details of level of subscription are as disclosed in the
table below:
Subscription for the LBGB's Offer For Sale
Class of Total Applications Number of Ordinary Over
Applicants received Total Shares of RM1.00 Subscription
each in LBGB Rate (times)
Applied for
Bumiputra 19,048 27,676,000 45.13
Public 33,139 69,260,000 48.47
Total 52,187 96,936,000 47.47
LBGB's Offer includes the following:
* offer for sale of 2,000,000 ordinary shares of Rm1.00 each
at an offer price of Rm1.00 per ordinary share payable in full
on application (Offer For Sale); and
* 6,000,000 ordinary shares of Rm1.00 each at the price of
Rm1.00 per ordinary share payable in full on application
(Placement)
MAY PLASTICS: Obtains KLSE's Financial Report Submission Waiver
---------------------------------------------------------------
May Plastics Industries Berhad (MPI) announced that it has
obtained the waiver from the Kuala Lumpur Stock Exchange from
complying with Paragraph 9.23 (a) of the LR to issue annual
report for the financial year ended 30 June 2001. The
justifications given by MPI in seeking the exemption were:
i) MPI was at the implementation stage of proposed rescue cum
restructuring scheme comprising composite schemes of arrangement
(SOA) and various related proposals (Proposals). Upon full
implementation of the proposals, MPI would become a wholly-owned
subsidiary of KSUH Holdings Berhad (KSUH) and be de-listed from
the Official List of the Second Board of the KLSE. In place of
MPI, KSUH will assume the listing status of MPI and be admitted
to the Official List of the KLSE. In this regard, MPI will no
longer be required to comply with the KLSE Listing Requirements.
ii) A copy of the audited accounts of MPI group for the
financial year ended 30 June 2001 had been furnished to the KLSE
on 31 October 2001. On the same day, MPI had also announced to
the KLSE the said audited results of the MPI group.
iii) The annual general meeting of MPI for the financial year
ended 30 June 2001 was expected to be carried out only by way of
a circular resolution to be approved by KSUH, being the only
shareholder of MPI.
MBF HOLDINGS: SC Approves Proposed Schemes Of Arrangement
---------------------------------------------------------
Alliance Merchant Bank Berhad (Alliance), on behalf of the Board
of Directors of MBf Holdings Berhad (MBf-H or Company),
announced that the Securities Commission (SC) has, vide its
letter dated 9 January 2002, approved the Proposed Schemes of
Arrangement, as proposed, which entails:
Proposed Local Schemes:
(i) Proposed reduction in the issued and paid-up share capital
of MBf-H from RM575,455,300.50 comprising 1,150,910,601 ordinary
shares of RM0.50 each in MBf-H (MBf-H Shares) to RM57,545,530
comprising 1,150,910,601 ordinary shares of RM0.05 each.
(Proposed Reduction of Share Capital);
(ii) Proposed consolidation of twenty (20) ordinary shares of
RM0.05 each in MBf-H into one (1) ordinary share of RM1.00 each
in MBf-H (New MBf-H Share) after the Proposed Reduction of Share
Capital (Proposed Consolidation)
(iii) The proposed reduction of the share premium account of up
to RM513,842,000 to be utilized to reduce MBf-H's accumulated
losses after the proposed debt restructuring schemes (Proposed
Reduction of Share Premium);
(iv) Proposed issue of a total of 11,509,106 free warrants
(Warrants) on the basis of one (1) Warrant for every five (5)
New MBf-H Shares held to the existing shareholders upon
completion of the Proposed Reduction of Share Capital and
Proposed Consolidation;
(v) Proposed acquisition of 480,000,000 ordinary shares of MBf
Carpenters Limited (MBf Carpenters) representing 95.96 percent
equity interest therein by MBf-H from MBf Asia Capital
Corporation Holdings Limited (MACC-H) for a purchase
consideration of AUD64,080,000 or RM125,558,000 based on an
exchange rate of AUD1.00:RM1.959 as at 28 February 2001 (for
illustrative purpose) (Proposed Acquisition of MBf Carpenters).
The purchase consideration shall be satisfied by:
* the issuance of 62,779,000 New MBf-H Shares to be credited
as fully paid-up at an issue price of RM1.00 per share to MACC-
H. The New MBf-H Shares will be issued with a total of
25,112,000 Warrants on the basis of two (2) Warrants for every
five (5) New MBf-H Shares to be issued; and
* the balance of RM62,779,000 shall remain as a debt owing
from MBf-H to MACC-H (MBf-H Debt A) and will be issued with a
total of 25,112,000 Warrants on the basis of two (2) Warrants
for every RM5.00 MBf-H Debt A. Subsequently, the MBf-H Debt A
owing from MBf-H to MACC-H will be sold to Newco A, a wholly-
owned subsidiary company of MACC-H incorporated in Hong Kong to
facilitate the issuance of redeemable convertible secured loan
stocks Series A (RCSLS-A);
(vi) Proposed acquisition of 2,685,150 ordinary shares of
RM1.00 each in MBf Cards (M'sia) Sdn Bhd (MBF Cards) (formerly
known as MBf Card Services Sdn Bhd) representing 51.0 percent
equity interest therein by MBf-H from MBf Asia Capital
Corporation Limited (MACC-L) for a purchase consideration of
RM85,725,000 (Proposed Acquisition of MBF Cards) to be satisfied
as follows:
* the issuance of 42,862,500 New MBf-H Shares to be credited
as fully paid-up at an issue price of RM1.00 per share to MACC-
L. The New MBf-H Shares will be issued with a total of
17,145,000 Warrants on the basis of two (2) Warrants for every
five (5) New MBf-H Shares to be issued; and
* the balance of RM42,862,500 shall remain as a debt owing
from MBf-H to MACC-L (MBf-H Debt B) and will be issued with a
total of 17,145,000 Warrants on the basis of two (2) Warrants
for every RM5.00 MBf-H Debt B. Subsequently, the MBf-H Debt B
owing from MBf-H to MACC-L will be sold to Newco B, a wholly-
owned subsidiary company of MACC-H incorporated in Hong Kong to
facilitate the issuance of RCSLS-B; and
(vii) Proposed debt restructuring schemes of MBf-H and its
selected subsidiary companies incorporated in Malaysia namely,
MBf Property Services Sdn Bhd, MBf Flexible Packaging Sdn Bhd,
MBf Automobile Sdn Bhd, MBf Commercial Vehicles Sdn Bhd and MBf
Daewoo Sdn Bhd (MBf-H Sub Group 1), with borrowings denominated
in RM to be satisfied by the issuance of the following:
* up to 108,165,000 New MBf-H Shares;
* up to 53,700,000 Warrants; and
* up to RM26,086,000 nominal value of RCSLS;
Proposed Offshore Schemes
(i) Proposed Acquisition of MBf Carpenters from MACC-H;
(ii) Proposed Acquisition of MBF Cards from MACC-L; and
(iii) Proposed debt restructuring schemes of MBf-H and its
selected subsidiary companies incorporated in Hong Kong namely,
MACC-H and MACC-L (MBf-H Sub Group 2), with borrowings
denominated in USD to be satisfied by the issuance of the
following:
* up to 290,313,000 New MBf-H Shares;
* up to 202,173,000 Warrants (including the issuance of the
Warrants pursuant to the Proposed Acquisition/Sale of MBf
Carpenters and Proposed Acquisition/Sale of MBF Cards); and
* up to RM105,642,000 nominal value of RCSLS-USD;
Proposed employees' share option scheme for the employees and
Executive Directors of MBf-H and its subsidiaries (MBf-H Group
or Group) who meet the criteria of eligibility for participation
in the Proposed ESOS as set out in the Bye-Laws containing the
terms and conditions of the Proposed ESOS (Proposed ESOS). The
total number of new ordinary shares in MBf-H to be offered
pursuant to the Proposed ESOS shall be subject to a maximum of
10 percent of the issued and paid-up share capital of MBf-H; and
Proposed listing of and quotation for the New MBf-H Shares and
Warrants on the Main Board of the Kuala Lumpur Stock Exchange
(KLSE) to be issued pursuant to the implementation of the
Proposed Schemes of Arrangement.
The approval of the SC for the Proposed Schemes of Arrangement
is subject to, inter-alia, the following conditions:
(a) In relation to the SC 's press release dated 28 August
2001 pertaining to the SC's Policies and Guidelines on
Issue/Offer of Securities (SC Guidelines), MBf-H must ensure
that the Deed Poll constituting the above Warrants does not
contain any provision for the extension of the exercise period
of the Warrants;
(b) Alliance/MBf-H must seek the approval of the SC for any
changes to be made on the terms and conditions for the issuance
of the RCSLS, including the list of properties to be pledged as
security for the issuance of the RCSLS;
(c) Alliance/MBf-H must seek the approval of BNM for the
Proposed Local Schemes and Proposed Offshore Schemes pertaining
to the Proposed Schemes of Arrangement. In this regard, MBf-H
had on 8 January 2002 obtained the approval of BNM for the
Proposed Schemes of Arrangement; and
(d) MBf-H must fully comply with the requirements of the SC's
Guidelines and the Guidelines on the issuance of Private Debt
Securities in relation to Proposed Schemes of Arrangement.
The Company would now proceed to seek the approval of the KLSE
for the listing of and quotation for the New MBf-H Shares and
Warrants to be issued pursuant to the Proposed Schemes of
Arrangement.
MTD CAPITAL: Gets SC's Nod On Proposals
---------------------------------------
Arab-Malaysian Merchant Bank Berhad (Arab-Malaysian), on behalf
of MTD Capital Bhd (MTD or Company), announced that the
Securities Commission (SC) has, by its letter dated 7 January
2002, approved the following proposals:
(i) Disposal of 99,999,999 ordinary shares and one(1) special
share of RM1.00 each representing the entire equity interest in
MTD Prime Sdn Bhd (MTD Prime) for a sale consideration of
RM1,200,000,000 to be satisfied by the issuance of 1,090,909,090
new ordinary shares of RM1.00 each in Dewina at an indicative
issue price of RM1.10 per share, instead of the proposed
issuance of 1,090,909,090 new ordinary shares of Dewina together
with 272,727,272 warrants attached thereto at an indicative
issue price of RM1.10 per share with warrant;
(ii) Capital repayment and distribution of up to 171,827,505
ordinary shares of RM1.00 each in Dewina held by MTD to the
entitled shareholders of MTD on the basis of one(1) ordinary
share of Dewina for every one(1) existing MTD share held, as
proposed; and
(iii) Placement of ordinary shares of RM1.00 each in Dewina
held by MTD pursuant to Proposed Disposal to certain
institutions and individuals to be identified, who are deemed
public to meet the public shareholding spread requirement at an
indicative share price of RM1.10 per share or higher (Proposed
Placement), as proposed.
The Directors of MTD have accepted the variation by the SC on
item (i) above.
The approval by the SC for the Proposals is subject to the
following conditions:
(a) MTD is required to enclose the Valuation Report on MTD
Prime (together with the basis and assumptions used to arrive at
the valuation of MTD Prime) in the Circular to Shareholders;
(b) Arab-Malaysian/MTD is required to furnish the final list
of investors who receive the Proposed Placement shares for SC's
record purposes; and
(c) The SC's approval is required for the utilization of the
proceeds from the Proposed Placement.
With reference to item (c) above, the Company proposes to
utilize the said proceeds to reduce bank borrowings of the MTD
Group. The SC's approval for the said utilization will be sought
in due course.
Adjustments will be made to the exercise price of the existing
outstanding warrants pursuant to the Proposed Distribution, in
accordance to the terms of MTD's deed poll dated 23 May 1996 and
its subsequent supplemental deed polls constituting the existing
outstanding warrants issued by MTD. The details of the
adjustments will be announced in due course.
A circular containing the details of the Proposals will be
dispatched to the shareholders in due course.
The "Proposals" refers to:
* Proposed Disposal of 99,999,999 ordinary shares and one(1)
special share of Rm1.00 each representing 100 percent of the
equity interest in Mtd Prime Sdn Bhd (Mtd Prime) to Dewina
Berhad (Dewina) from Puncak Sabit Sdn Bhd (Puncak Sabit), a
wholly-owned subsidiary of Mtd, for a sale consideration of
Rm1.2 billion to be satisfied by the issuance of 1,090,909,090
new ordinary shares of Rm1.00 each (Disposal Shares) together
with 272,727,272 detachable warrants (Disposal Warrants) at an
indicative issue price of rm1.10 per disposal share with
disposal warrant (Proposed Disposal);
* Proposed Capital repayment and distribution of up to
171,827,505 ordinary shares of Rm1.00 each in Dewina held by Mtd
to the entitled shareholders of Mtd on the basis of one(1)
Dewina share for every one(1) existing Mtd share held (Proposed
Distribution); and
* Proposed Placement to certain institutions and individuals
to be identified, who are deemed public (Proposed Placement)
OLYMPIA INDUSTRIES: Unit Issues Add'l Winding Up Petition Info
--------------------------------------------------------------
The Board of Olympia Industries Berhad (OIB) disclosed
additional information on the winding-up petition against its
subsidiary, Mascon Sdn Bhd, as requested by the Kuala Lumpur
Stock Exchange for public release:
1. The total cost of investment in Mascon Sdn Bhd (Mascon) is
RM30,655,896;
2. The winding-up proceedings have no material financial and
operational impact on the OIB Group. This is because Mascon has
been incurring losses and is in a shareholders' deficit position
and thus have no positive contribution to the OIB Group;
3. The estimated losses, if any, arising from the said petition
would not be material;
4. No interest charge was claimed under the petition;
5. As advised by the petitioner's solicitors, the petition was
presented to the High Court on 25 October 2001. However, Mascon
wishes to clarify again that it was not in receipt or officially
served with the said petition; and
6. By a letter of award dated 4 February 1998, the petitioner
has been awarded the nominated subcontractor by Mascon for
Internal Sanitary Plumbing Services for the Proposed 18-Storey
Prima Saujana Apartment (386 Units) at Plot 2 on part of Lots
48432-48434 (PT 19046-19047) Mukim Batu, Daerah Gombak, Selangor
Darul Ehsan for Palm Grove Housing Sdn. Bhd. for a contract
value of RM1,362,706.00. The petitioner claims the balance for
work done totaling RM62,474, which claim is being disputed.
The Company also advised that the trading in the shares of the
above Company has been suspended with effect from 9.00 a.m.,
Monday, 14 January 2002 until further notice.
PROJEK USAHASAMA: Defaults RM2BCommercial Financing Facilities
--------------------------------------------------------------
Renong Berhad (Renong) informed that the facility agent for the
RM2.0 billion Commercial Financing Facilities served on Projek
Usahasama Transit Ringan Automatik Sdn Bhd (PUTRA), a wholly-
owned subsidiary of Renong, through their solicitors letter
dated 26 December 2001, issued a Statutory Demand pursuant to
Section 218 of the Companies Act 1965 for the payment of these
loan amounts:
Commercial Financing Facilities Amount
Conventional Facility (principal and interest) RM1.16 billion
Islamic Facility (principal and profit) RM1.18 billion
In respect of the RM1.16 billion payable under the Conventional
Facility, PUTRA is also required to pay a further interest at
the rate of 7.75% p.a (which is 2.75% p.a over and above the
effective cost of funds of Commerce International Merchant
Bankers Berhad (CIMB) for the period from 27 December 2001 until
29 December 2001 and thereafter at the rate of 2.75% p.a above
CIMB's one month effective cost of fund until the date of
payment.
PUTRA is required to pay the outstanding amounts due within
twenty-one (21) days from 27 December 2001, failing which,
winding-up proceedings will be taken against PUTRA.
Renong informed that PUTRA had, on 24 December 2001, informed
the facility agent that it will not be able to repay the amounts
demanded under the respective notices for each of the
facilities. PUTRA had also, on the same date, informed the
Government of the situation and requested the Government to
appoint a qualifying substitute or itself purchase the assets of
the railway in accordance with the terms of the Concession
Agreement with the Government of Malaysia dated 7 August 1995.
REKAPACIFIC BERHAD: Adrian Yeo & Co. Replaces PwC As Accountant
---------------------------------------------------------------
The Board of Directors of Rekapacific Berhad informed that the
appointment of Adrian Yeo & Co. to act as Monitoring Accountant
of the Company and its subsidiaries in accordance with the
requirements of Practice Note 4/2001 in place of
PricewaterhouseCoopers (PwC) who have resigned.
TCR-AP reported that on 14 December 2001, the Company filed an
application for leave to institute judicial review proceedings
(the Application) against the Securities Commission (the 1st
Respondent) and the Kuala Lumpur Stock Exchange (the 2nd
Respondent) with the High Court of Malaya at Kuala Lumpur in the
matter of the de-listing of the Company. The Honorable Court has
since fixed 6 and 7 February 2002 for the hearing of the
judicial review application proper.
=====================
P H I L I P P I N E S
=====================
BENPRES HOLDINGS: Unit Maynilad Water Cannot Pay US$100M Debt
-------------------------------------------------------------
Maynilad Water Services Inc., a joint venture between Benpres
Holdings Corporation and France's Suez Lyonnaise des Eaux SA,
cannot repay $100 million of short-term loans due on February,
the Philippine Daily Inquirer and Bloomberg reported on Tuesday.
Benpres' stocks fell by 4 centavos, or 7.3 percent, to 51 on
growing concern that its subsidiaries cannot repay overdue
debts.
DebtTraders reports that Benpres Holdings Corporation's 7.875%
bond due in 2002 (BENPR) trades between 62.000 and 65.000. For
real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=BENPR
COSMOS BOTTLING: SMC Buying Minority Shares For P6.045 Each
-----------------------------------------------------------
San Miguel Corp (SMC), in a joint venture with Coca-Cola Co.,
which recently purchased a controlling 83.2 percent stake in
Cosmos, will soon make an offer for shares of minority
stockholders in the soft-drink firm for P6.045 each, Dow Jones
reported on January 14.
The shares of Cosmos Bottling Corp. rose 1.7 percent higher on
Monday as some market players tries to secure additional shares
of the soft-drink maker ahead of the January 17 record date of
its shareholders' entitlement to join a tender offer for the
shares. At 10:10 p.m. EST Sunday, the stock was up 1.7 percent,
or 10 centavos, at P5.90 on 5,000 shares traded.
NATIONAL STEEL: Government Orders Foreclosure
---------------------------------------------
The government has ordered the immediate foreclosure of National
Steel Corporation (NSC) as well as the creation of a special
purpose vehicle that will allow creditor banks to acquire the
assets of the debt-laden firm, Business World reported Monday.
President Arroyo said it is time to foreclose or gather the
creditors to form a special purpose vehicle to take over the
assets of NSC.
Secretary Manuel A. Roxas II of The Department of Trade and
Industry will meet next week with Malaysia's debt rehabilitation
agency, Pengurusan Danaharta Nasional Berhad, to evaluate the
foreclosure option. Roxas said creditor banks and Danaharta
would decide whether to pursue the reopening of NSC's steel
facility in Iligan City, which used to be the largest steel
maker in the country before it closed down in 1999.
The company's biggest creditors, the majority of whom are in
favor of foreclosure proceedings, are Philippine National Bank,
Land Bank of the Philippines, Allied Banking Corp., and Westmont
Bank. The four banks hold the majority of NSC's P9.87 billion
debts.
NSC, which declared a state of suspension of payment and
rehabilitation in December 1999 after it failed to meet maturing
liabilities, suspended its operations in November that year due
to financial problems highlighted by its failure to repay debts
to 14 creditor banks. SEC declared the company insolvent in
March 2000.
NATIONAL STEEL: Union Against Govt Foreclosure Decision
-------------------------------------------------------
The labor union of National Steel Corporation (NSC) opposed the
government's decision to foreclose the debt-ridden plant,
Business World said on Tuesday. President Arroyo announced NSC
will be foreclosed and the government will establish a special
purpose vehicle that will permit creditor banks to acquire its
assets.
The National Steel Labor Union-Federation of Free Workers
(Naslu-FFW) stressed that the government's foreclosure efforts
is a latest twist to further stall the reopening of the plant.
"The foreclosure is a sure-fire formula for tying down the
assets for at least one-year from actual foreclosure, because of
the one-year redemption period," Naslu President, Simplicio H.
Villarta, Jr. said.
REYNOLDS PHILIPINES: LBP Seeks Foreign Investors To Manage Co
-------------------------------------------------------------
The Land Bank of the Philippines (Landbank) is seeking for
foreign groups to manage debt-ridden aluminum maker Reynolds
Philippines Corporation, Business World said January 15. Sources
said that Landbank is set to go back to the negotiating table
with groups, which had earlier expressed interest to save the
company from its financial problems
Landbank, currently the single largest shareholder of RPC with
40 percent, which was previously held by Profinda Holdings Corp.
that used its RPC shares as collateral for debts owed to
Landbank, approved last week Reynold's debt restructuring
scheme, which aims to lessen its debts to P1 billion from P3
billion. The source said RPC's creditors would sign the
restructuring program this month, with at least 67 percent of
the firm's creditors having given their nod to the debt program.
Landbank will take over company management by March or April.
Aside from the entry of the new investor, the restructuring plan
is also expected to pave the way for RPC's raising of around
P400 million in last-in-first-out (LIFO) funds to finance the
importation of raw materials and other working capital
requirements. The company will need US$12 million to operate at
capacity. RPC currently owes both secured and unsecured
creditors over P2.5 billion, half of which were from Landbank.
=================
S I N G A P O R E
=================
ADROIT INNOVATIONS: Completes Payment Solutions Share Sale
----------------------------------------------------------
Further to the Company's announcement on December 31 2001, the
Board of Directors announced that the sale of all the Adroit
Innovation's shares in The Payment Solutions Company Pte Ltd to
Network for Electronic Transfers (Singapore) Pte Ltd has been
completed on January 14, 2002.
The Company announced its plans to restructure in the face of an
increasingly challenging market environment on May last year.
The restructuring move involves the reduction of staff by 34
employees, 18.7 percent of the current workforce, reported TCR-
AP.
ACMA LTD: Issues Profit Warning
-------------------------------
The Directors of Acma Ltd (the Company), referring to the
announcement of the Company's results for the half-year ended
June 30, 2001 made on September 26, 2001 and the clarification
statement dated October 2, 2001, whereby the Directors stated
that the Group expected to be profitable in the second-half,
said the group instead expects to incur a loss for the second-
half due to:
(i) further weakening in global market conditions in the
fourth quarter, which adversely affected the performance of
certain Group subsidiaries;
(ii) delays encountered in the delivery and completion of
certain significant projects which adversely and materially
affected Group profits for the financial year ended 31 December
2001 (as the related profits can only be recognized in the
following financial year, FY 2002);
(iii) inventory and development expenses to be written down
as a result of a listed subsidiary's recent decision in December
2001 to revamp its business model which resulted in the
surrender of certain significant distribution agencies;
(iv) provisions for costs relating to the rationalization of
the Group's internet businesses; and
(v) additional provisions in respect of inventories and
accounts receivables, made further to the review after the
current financial year-end in light of the prevailing adverse
economic climate.
To partly mitigate the impact of the above on the Group's
operating results moving forward, the Group has taken the
following actions:
(i) a reduction in head-count on a Group-wide basis;
(ii) a reduction of staff and management compensation
packages; and
(iii) implementation of other cost cutting measures with the
view to reducing the overall business costs of the Group and
improving profit margins.
Despite the loss expected for FY 2001, management believes that
the aforesaid steps taken, coupled by further improvement
expected in the performance of various Group subsidiaries,
should help see the Group move firmly on the path of
profitability in FY 2002.
The Directors will provide more details of the Group's business
outlook for the new financial year ending December 31, 2002 when
the Group announces its results for the financial year ended
December 31, 2001.
TONG MENG: Seeks Voluntary Delisting
------------------------------------
Tong Meng Industries Limited (Tong Meng or the Company)
announced that the Directors of the Company (the Directors) have
received a proposal from Tong Meng Holdings Pte Ltd (TM
Holdings) on January 7, 2002 seeking the voluntary delisting of
Tong Meng from the Official List of the Singapore Exchange
Securities Trading Limited (SGX-ST) under Clause 208 of the SGX-
ST Listing Manual (the Delisting Proposal).
Under the terms of the Delisting Proposal, TM Holdings proposes
to offer to all shareholders of Tong Meng (Shareholders) $5.25
in cash for every one ordinary share of $1.00 in the capital of
Tong Meng (Share) held by them (the Delisting Exit Offer).
The Directors have reviewed the Delisting Proposal and have
resolved Tuesday that an Extraordinary General Meeting (EGM) of
the Company will be held in due course to seek the approval of
Shareholders to the Delisting Proposal and to apply to the SGX-
ST for the voluntary delisting of Tong Meng.
The Delisting Proposal
Under Clause 208 of the SGX-ST Listing Manual, the SGX-ST may
agree to an application for the delisting of Tong Meng if:
(a) Tong Meng convenes a general meeting to obtain the approval
of Shareholders to the Delisting Proposal;
(b) the resolution to delist Tong Meng is approved by a majority
of at least 75 percent in nominal value of the Shares held by
Shareholders present and voting, on a poll, either in person or
by proxy at the meeting;
(c) the resolution to delist Tong Meng is not voted against by
10 percent or more in nominal value of the Shares held by
Shareholders present and voting, on a poll, either in person or
by proxy at the meeting;
(d) a reasonable exit alternative, which should normally be in
cash, is offered to the Shareholders; and
(e) Tong Meng appoints an independent financial adviser to
advise the Independent Directors on the exit offer.
The SGX-ST has advised that, in addition to complying with
Clause 208 of the SGX-ST Listing Manual, the independent
financial adviser be of the opinion that the Delisting Exit
Offer is reasonable.
Conditions
The delisting of Tong Meng from the Official List of the SGX-ST
and the Delisting Exit Offer will be conditional on, among other
things, obtaining the approval of Shareholders at the EGM to
delist Tong Meng, as prescribed by Clause 208.
Upon meeting these conditions, an application will be made to
the SGX-ST to delist Tong Meng from the Official List of the
SGX-ST.
Shareholders should note that, under Clause 208, the Directors
and the Controlling Shareholders (as defined below) of Tong Meng
are not required to abstain from voting on the resolution to
delist Tong Meng to be proposed at the EGM (the Delisting
Resolution). As of January 14, 2002 (the Announcement Date),
Fairbanks Holding (Pte) Ltd, Kayakita Corporation Sdn Bhd,
Premium Bond Company Limited, Premium Bond (M) Sdn Berhad,
Kayakita Investment Pte Ltd (the Substantial Shareholders) and
Tan Sri Dato' Dr Teh Hong Piow (together with the Substantial
Shareholders, the Controlling Shareholders) collectively have
direct and deemed interests in 6,060,497 Shares, representing
approximately 75.8 percent of the existing issued and paid-up
capital of the Company. Under the terms of the Delisting
Proposal, the Controlling Shareholders have confirmed their
intention that their entire shareholdings in the Company will be
voted in favor of the Delisting Resolution.
Rationale for Delisting
The Delisting Proposal was made by TM Holdings to the Company
and the Directors agreed to table the Delisting Proposal before
Shareholders after careful consideration and discussions.
Following such discussions, the Directors believe that the
Delisting Proposal is in the best interests of Shareholders for
the following reasons:
Lack of Liquidity
The trading volume of the Shares on the SGX-ST has been low with
the Shares trading only on one market day in 2001 and eight
market days in 2000. Total trading volume in those two years was
only 21,000 Shares. As at the Announcement Date, the Shares were
last traded on 19 April 2001 and there has been no trading in
the Shares since then.
The low liquidity of the Shares has resulted in a lack of
investor interest in, and research coverage of, Tong Meng. The
justification for maintaining Tong Meng's listed status of
providing Shareholders with liquidity for their Shares therefore
appears to be no longer valid.
No Need for Access to Capital Markets
Another reason for maintaining a listing on the SGX-ST is to
gain access to the capital markets for fund-raising purposes.
Tong Meng has not raised funds from the capital markets since 1
January 1990. The Directors are of the view that Tong Meng is
unlikely to require access to the capital markets in the
foreseeable future to finance its operations and therefore
believe that this reason is likewise no longer valid.
Significant Premium Over Past Trading Prices
The Exit Offer Price:-
(a) represents a premium of approximately 101.9 per cent. over
the last traded price of $2.60 per Share on the SGX-ST on 19
April 2001;
(b) represents a premium of approximately 71.6 per cent. over
the highest traded price of $3.06 per Share since 1 January
1999; and
(c) is equal to the highest traded price of $5.25 per Share
since 1 January 1990.
The Delisting Proposal offers Shareholders an opportunity to
realize the value of their past investment in Tong Meng at a
significant premium over the trading prices of the Shares on the
SGX-ST in the past three years.
In summary:
Tong Meng's listed status no longer fully achieves its objective
of creating liquidity in the Shares.
Tong Meng is unlikely to require access to the capital markets
in the foreseeable future and so is unlikely to need its listed
status for this purpose.
The Exit Offer Price represents a significant premium of
approximately 101.9 per cent. over the last traded price of
$2.60 per Share on the SGX-ST on 19 April 2001.
Compulsory Acquisition
Under Section 215(1) of the Companies Act, Chapter 50 of
Singapore (the Companies Act), if an offeror acquires 90 per
cent. or more of the shares of a Singapore-incorporated company
(other than those already held at the date of the offer by, or
by nominees for, the offeror or its subsidiaries) the offeror
may compulsorily acquire the shares held by dissenting
shareholders.
In the event that TM Holdings acquires 90 per cent. or more of
the issued share capital of Tong Meng pursuant to the Delisting
Exit Offer, TM Holdings intends to exercise its right to
compulsorily acquire all the Shares of the dissenting
Shareholders (the Compulsory Acquisition) under Section 215(1)
of the Companies Act. Upon completion of the Compulsory
Acquisition, Tong Meng will become a wholly-owned subsidiary of
TM Holdings.
As at the Announcement Date, there are no Shares held by, or by
nominees for, TM Holdings.
Tong Meng's Financial Condition
On 14 January 2002, the Company announced that its unaudited
consolidated net tangible asset value (NTA) as at 31 December
2001 was approximately $21.35 million or $2.67 per Share. The
NTA included, inter alia, a freehold property (Freehold
Property) and investments in quoted securities (Quoted
Securities) which were carried at a book value of approximately
$2.11 million and $7.27 million as at 31 December 2001
respectively.
The Quoted Securities consist of 1,326,000 Public Bank Berhad
(PBB) shares, 49,006,100 PBB-Foreign Market shares as well as
40,000 Rashid Hussin Bhd shares. As at the Announcement Date,
the aggregate market value of the Quoted Securities is
approximately RM137.09 million.
On 3 October 2001, the Company announced that its Freehold
Property has been valued at RM6,000,000. The surplus arising
from this revaluation has not been taken into its books.
Arthur Andersen is the tax adviser of the Company. The notional
tax liabilities arising from a hypothetical disposal of the
Freehold Property and the Quoted Securities are computed by the
management of the Company in consultation with the tax adviser.
As at the Announcement Date, the notional tax liabilities
arising from a hypothetical disposal of the Freehold Property is
not expected to be more than RM350,000. In addition, notional
tax liabilities arising from a hypothetical disposal of the
Quoted Securities are not expected to be material. It should be
noted that the above tax considerations are based on a
hypothetical sale of the Freehold Property and the Quoted
Securities and the Directors currently do not have any intention
to dispose of the Freehold Property and/or any of the Quoted
Securities. These tax computations are therefore provided for
shareholder information only. Shareholders should note that the
tax computations have been prepared in consultation with the
Company's tax advisers and no confirmation has been sought from
the relevant tax authorities. The actual tax liabilities that
may arise from an actual disposal of the Freehold Property
and/or any of the Quoted Securities may therefore differ from
the above tax computations depending on the rulings of the
relevant tax authorities.
Directors' And Substantial Shareholders' Interests
Note: All references to shareholding interests as set out in
this section have been computed as defined under Section 7 of
the Companies Act.
As at the Announcement Date, the Substantial Shareholders
collectively have direct and deemed interests in 6,055,497
Shares, representing approximately 75.7 percent of the existing
issued and paid-up capital of the Company and Tan Sri Dato' Dr
Teh Hong Piow has a direct interest in 5,000 Shares,
representing approximately 0.06 percent of the existing issued
and paid-up capital of the Company. The Substantial Shareholders
are companies in which Tan Sri Dato' Dr Teh Hong Piow has a
controlling interest. Tan Sri Dato' Dr Teh Hong Piow has
therefore direct and deemed interest in 6,060,497 Shares
representing approximately 75.8 percent of the existing issued
and paid-up capital of the Company.
The Directors are Tan Sri Dato' Dr Teh Hong Piow and Messrs Geh
Cheng Hooi, Paul, Tai Yoon Loy, Teh Hong Khiam and Lai Kim
Leong.
Tan Sri Dato' Dr Teh Hong Piow, the Chairman of Tong Meng, has a
direct and deemed interest of approximately 75.8 percent in the
Shares and a controlling interest in TM Holdings.
Mr Teh Hong Khiam is a director of TM Holdings and a brother of
Tan Sri Dato' Dr Teh Hong Piow.
Mr Lai Kim Leong is a director of TM Holdings.
Save as disclosed, none of the Directors are deemed to have a
material interest in the Delisting Proposal. Messrs Geh Cheng
Hooi, Paul and Tai Yoon Loy are independent Directors (the
Independent Directors) with respect to the Delisting Proposal.
TM Holdings (formerly known as Dumares Investment Pte Ltd) was
incorporated in Singapore on 30 November 2000. As at the
Announcement Date, it has an authorized share capital of
$100,000 comprising 100,000 ordinary shares of $1.00 each and an
issued and paid-up capital of $3.00 comprising 3 ordinary shares
of $1.00 each. The shareholders of TM Holdings are Fairbanks
Holding (Pte) Ltd, Premium Bond Company Limited and Kayakita
Investment Pte Ltd. The directors of TM Holdings are Mr Teh Hong
Khiam and Mr Lai Kim Leong. The principal activity of TM
Holdings is that of investment holding.
Financial Adviser
TM Holdings and Tong Meng have appointed The Development Bank of
Singapore Limited (DBS Bank) to advise TM Holdings and Tong Meng
in connection with the Delisting Proposal.
DBS Bank, as financial adviser to TM Holdings, confirms that
sufficient financial resources are available to TM Holdings to
satisfy in full all acceptances of the Delisting Exit Offer by
Shareholders other than the Controlling Shareholders.
Independent Financial Adviser
Tong Meng has appointed ANZ Singapore Limited (ANZ) as the
independent financial adviser to the independent Directors to
advise on the Delisting Exit Offer. Based on its review of the
Delisting Exit Offer as at the Announcement Date, ANZ is of the
opinion that the Delisting Exit Offer is reasonable. ANZ will
issue its formal opinion in the Circular (as defined below).
In the meantime, Shareholders who are considering selling any of
the Shares should consult their bank manager, solicitor,
accountant or other professional adviser before taking any
action. Unless they have made an independent decision as to
their Shares based on their personal investment objectives,
financial situation, particular needs or prevailing market
conditions, they may wish to refrain from selling their Shares
until they have received the detailed recommendation of the
independent Directors on the Delisting Exit Offer (including
ANZ's advice) to be included in the Circular.
Other Information
A circular to be issued by the Company (the Circular) will be
dispatched to Shareholders in due course. The Circular shall
include, among other things, further information regarding the
Delisting Proposal, a notice of the EGM, the terms and
conditions of the Delisting Exit Offer, and the recommendations
of ANZ and the independent Directors regarding the Delisting
Exit Offer.
VIKAY INDUSTRIAL: Resumes Trading On January 15
-----------------------------------------------
Vikay Industrial Ltd, which has been under judicial management
for the last four years, will resume trading on January 15,
Channel News Asia reported on January 14. The company was
suspended from Sesdaq in November 1997 after sinking under $168
million in debts. The judicial management was lifted by the High
Court on Monday after the completion of the rescue package by E-
Path. E-Path pumped $12 million into the firm, of which $5
million was to buy out the creditors from the books, leaving $7
million in working capital for the company.
The resumption comes after a restructuring of the company by its
judicial managers Bobby Chin, Michael Ng and Tham Sai Choy of
global financial advisory KPMG. The company emerges from the
four-year restructuring exercise now owned by wood and shipping
businessman Kea Kah Kim's E-Path Developments Ltd. The scheme
involved a debt-to-equity conversion comprising capital
reduction of almost $60 million, share consolidation which
reduces its par value from 25 cents a share to half a cent a
share, restructuring of some $86 million of debt and the issue
of some 353 million new shares.
The liquid crystal display maker company has about 400
employees, and recorded net loss of almost $4 million on sales
of $4.3 million for the first half of last year.
===============
T H A I L A N D
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DATAMANT PUBLIC: Decreases Par-Value; Re-elects Directors
---------------------------------------------------------
Datamat Public Company Limited reported the resolutions of the
Board of Directors Meeting No.1/2002 held on January 14, 2002.
The meeting resolved:
1. To approve the paid up capital decrease, by decrease the par
value from Bt10 (Baht Ten) to Bt1 (Baht One), provided that such
Par Value decrease shall be made after the Company has completed
the registration of the previous paid-up capital increase from
allotment to shareholder with the Ministry of Commerce.
2. Due to resignation of the directors Mr. Apichat Phantumvanit
and Mr. Ekachai Kiertchaipanich from the Company's Board of
Director effective January 7,2002, Mr. Kusol Sangkananta and
Mr. Stephane Colette Alfred de Baets have been re-elected as
directors.
3. To approve convening an Extraordinary General Meeting of
Shareholder No. 1/2002 on February 21,2002 at the Company's
Headquarters located Datamat Building 2nd Floor No. 1252
Pattanakarn Road, Suanluang Subdistrict, Suanluang District,
Bangkok at 2.00 p.m. Such Meeting will have the following
agenda:
1) To consider approving the Minutes of the Extraordinary
General Meeting of Shareholders No. 1/2001;
2) To consider approving the paid-up capital decreased by
decreasing the par value from Bt10 (Baht Ten) to Bt1 (Baht One);
3) To consider approving the amendment of Clause 4. of the
Memorandum of Association in consistent with the paid-up capital
decrease;
4) To appoint the directors and to revise the director's
Authorities;
5) To consider other issues (if any).
4. To approve the closing date of the Shareholders register in
order to suspend the Company share transfer on January 30, 2002
commencing 12.00 p.m. until the adjournment of the Extraordinary
General Meeting of Shareholders No. 1/2002.
SINO-THAI ENGINEERING: Posts Capital Increase Report Form
---------------------------------------------------------
Sino-Thai Engineering and Construction Public Company Limited
(the Company) reported the resolutions of Board of Directors
Meeting No. 1/2002 held on January 11, 2002, at 14.30 hours to
15.30 hours, concerning the increase of capital and allotment of
new shares:
1. Capital Increase
The Board of Directors Meeting has resolved to increase its
capital from Bt850,000,000 to Bt1,020,000,000 by issuance of
17,000,000 common shares at the nominal par value of Bt10 per
share. The total capital increase will be Bt170,000,000.
2. Allotment of New Shares
The Company shall allocate 17,000,000 common shares, at the
nominal par value of Bt10 each, totally Bt170,000,000.
The details of the warrants on ordinary shares are as follows:
Category of Warrant: the warrants on ordinary shares of
Sino-Thai Engineering & Construction Plc.
Type : transferable warrant certificate specified name of
shareholders
Allotment Method : to the Company's existing shareholders.
The allotment of ordinary share purchase warrants shall be made
upon prior approval from the relevant organizations.
Number of Warrants issued: 17,000,000 Units
Sale Price/Warrant: Bt0 (Zero Baht)
Maturity Period : 5 years from the date of issuing of warrant
Exercising Ratio: The ordinary shareholder and/or the preferred
shareholder is eligible to one unit of warrant for the
five existing shares of which he holds.
Exercising Price : Bt10 (Ten Baht)
Exercising Period: The exercising of the rights of warrants
shall commerce after period of one year calculated from
the date of issuing of warrants up to the date of its
maturity of five years. The exercising of the right of
warrants shall made on every the 30th day of March, June,
September, December of each year. In the last time, the
exercising of the right of warrants shall exercise on
the date of its maturity of five years. If the said
exercise date to falls under the SET's holiday. The
exercising of the rights of warrants shall be made in the
following business day.
Number of shares reserved for : 17,000,000 shares exercising the
rights of warrants
Secondary market: The Company shall file an application for
listing the warrants that are issued for registration to
the Stock Exchange of Thailand.
The affection of shareholder: Number of share reserved for
exercising the rights of warrants is 16.67 percent of the
paid
up registered capital after capital increase and the
exercising of the right of warrants in this time.
3. Convening the Extraordinary Meeting of Shareholders for an
approval of the capital increase and the new share appropriation
The Extraordinary Meeting of Shareholders No. 1/2002 will be
convened at 10.00 hours, on February 14, 2002 at the Company's
conference room, 27th Floor, Sino-Thai Tower, no. 32/57
Sukhumvit Road (Soi Asoke), Kwaeng Klongtoey-Nua, Khet Wattana,
Bangkok. To determine which shareholders are eligible to attend
the shareholders meeting, the Company will close the Share
Register Book on January 25, 2002 at 12.00 hours until the
meeting is adjourned.
4. Objectives of the Capital Increase
The additional capital shall be used in business operation and
for the future business expansion of the Company.
5. Benefits to the Company
The Capital increase is enable the Company to be stabilized on
the larger capital base which establishes better opportunities
in the future bidding. In addition, it also eases up the working
capital in the Company's business operation.
6. Benefits to the Shareholders
* Right to keep the same shareholding ratio
* Right to obtain the dividends in the future whereas the
Company is successful in its restructuring plan and in case the
Company retains earnings in its business.
SRITHAI SUPERWARE: Implements Q3 Business Reorganization Plan
-------------------------------------------------------------
SGV-Na Thalang & Co., Ltd. as the Plan Administrator of Srithai
Superware Public Company Limited Plan (Srithai), informed of the
progress for the third quarter of year 2001, from July 1, 2001
to September 30, 2001, of the Company's Business Reorganization
Plan:
Restructuring of Indebtedness
On the Implementation Date, April 28, 2000, the portion of the
Affected Debt, aggregating USD 84.2 million was exchanged for
the Secured Floating Rate Notes (Secured FRNs).
From July 1, 2001 to September 30, 2001, the progress of
restructuring of indebtedness can be summarized as setout below.
Lists of Parts Completed
* Payment of interest for the period from April 29, 2001 to
July 27, 2001 accounting for 91 days at LIBOR rate of 5.6250
percent plus 1 percent margin, amounting to US$11.54 per note,
totaling US$971,668.
* Perfection of the securities mortgaged is completed.
Lists of Parts in Process
* Payment of interest and repayment of principal as stipulated
in the Term and Condition of Secured FRNs.
Restructuring of Share Capital
On April 28, 2000, affected debt amount of USD 89 million was
converted into equity of Srithai by the way of setoff. The
progress of implementing in part of restructuring of share
capital during this period can be summarized as follows.
Lists of Parts Completed
* Some Depositary Receipts holders have exchanged their
Depositary Receipts for Srithai's common shares.
List of Parts in Process
* The balance of the holders of Depositary Receipts are
entitled to exchange the depositary Receipts for Srithai's
common shares before December 8, 2001.
Disposal of Non-Core Assets
List of Parts in Process
* The developing of a framework, including timing and finding
interested parties, for disposal of non-core assets.
Management Arrangements
List of Parts in Process
* The appointment of new CFO to be a member of Board of the
Company.
* Two non-executive directors as banks'' representatives are
to be determined.
T.C. ALPHA: Files Business Reorg Petition In Bankruptcy Court
-------------------------------------------------------------
The Petition for Business Reorganization of T.C. Alpha Jibsen
Company Limited (DEBTOR), representative for distributing of
building equipment, agricultural equipment and other goods and
services, was filed In the Central Bankruptcy Court:
Black Case Number 1098/2543
Red Case Number 30/2544
Petitioner: T.C. ALPHA JIBSEN COMPANY LIMITED
Planner: Dragon Capital (Thailand) Company Limited
Debts Owed to the Petitioning Creditor: Bt790,258,682.75
Date of Court Acceptance of the Petition: December 27, 2000
Date of Examining the Petition: January 22, 2001 at 9.00 AM
Court Order for Business Reorganization and Appointment of
Planner: January 22, 2001
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Matichon Public Company Limited
and Siam Rath Company Limited: January 31, 2001
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Government Gazette: February 27,
2001
Deadline for the Planner to submit the Reorganization Plan to
Official Receiver: May 27, 2001
Planner postponed the date of submitting the reorganization plan
#1st to June 27, 2001
Planner postponed the date of submitting the reorganization plan
#2nd to July 27, 2001
Appointment date for the Meeting of Creditors to consider the
plan had been postponed to September 28, 2001 at 9.30 am.
Convention Room 1104, 11th Floor, Bangkok Insurance Building,
South Sathorn Road
The Meeting of Creditors had a resolution Not Accepting the
reorganization plan pursuant to Section 90/48
Contact: Mr. Somkit Tel, 6792525 ext 144
THAI HEAT: Creditors Approve Rehabilitation Plan Amendments
-----------------------------------------------------------
Thai Heat Revival Company Limited, reorganization planner of
Thai Heat Exhange Public Company Limited, has send the
rehabilitation plan to the central bankruptcy court on November
30 , 2001. The planner and creditors had submit three amendments
to the plan. On January 11, 2001 the creditor meeting approved
two planner amendments. The resolutions of the creditor meeting
are accepting the rehabilitation plan 97.05 percent and
appointed four creditor directors:
1.The Industrial Finance Corporation of Thailand
2.National Finance Public Company Limited
3.Ekachart Finance Public Company Limited
4.Bank Thai Public Company Limited
The details of the approval rehabilitation plan of the company
are:
1.Converting the debt of 13 financial institutions to 12,583,200
convertible prefer shares at Bt10 per share totaling
Bt125,583,200.
2.The remaining debt of 13 financial institutions amount of
Bt265 million will be fully paid within 10 years.
3.Stopping accrued interest from March 2001 onward until the
court admit the company into rehabilitation process. After that
the company has to pay the interest at the rate 3 percent per
annum until December 2003 and the rate not more than 5 percent
per annum for the year 2004-2005 and MLR rate for the year after
2006.
4.Account payables pay at normal credit term.
5.The preferential right of labor payables not exceeding
100,000 Baht will be fully paid in the year 2002. The normal
labor payables, which exceeding Bt100,000 will be fully paid in
the year 2005 and accrued interest rate 7.5 percent will be paid
in the year 2006 to 2007.
6.Thai Heat Exchange Public Company Limited will be the
management planner for the period of 5 years.
The central bankruptcy court set the date to judge the
rehabilitation process on 30 January 2002.
THAI PETROCHEMICAL: Appoints Ex-Govt Housing Bank Pres As CFO
-------------------------------------------------------------
Effective Planners Limited, Plan Administrator of Thai
Petrochemical Industry Public Company Limited (TPI), informed
that Khun Bhichar Damrongpiwat, former President of the
Government Housing Bank, has been appointed to become TPI's
Chief Financial Officer (CFO), effective February 1,2002
This management change is intended to facilitate the
implementation of the rehabilitation plan for 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, Maria Cristina Pernites-Lao, Editors.
Copyright 2002. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
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