/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/020128.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 Monday, January 28, 2002, Vol. 5, No. 19 Headlines A U S T R A L I A ANSETT AUSTRALIA: Jan 30 Tesna Sale Application Hearing Set BRISBANE BRONCOS: Clarifies Financial Review Article BRISBANE BRONCOS: Magic Millions Seeks Takeover Panel's Opinion CAPRAL ALUMINIUM: Finalizes 2001 Full Year Results CENTRAL NORSEMAN: Gold Election Notice Results DIGITAL NOW: Asks US Court to Administer Operations DIGITAL NOW: Posts Monthly Filing to US Bankruptcy Court NORMANDY MINING: AGG, Maple-Brown Cease to be Holders C H I N A & H O N G K O N G FUJIAN GROUP: Legal Action Filed Against Sino Earn KELLANE INVESTMENT: Winding Up Petition Hearing Set LAP MING: Hearing of Winding Up Petition Set LOYALTEX CHINA: Faces Winding Up Petition MIGHT FOUNDATE: Winding Up Petition Pending NAM FONG: Winding Up Petition Scheduled Today NEW RESTFUL: Petition To Wind Up Scheduled RICH WING: Winding Up Petition To Be Heard WAH TAK: Clarifies Press Articles, Signs Agreement With Mr Chu I N D O N E S I A INDOMOBIL SUKSES: KPPU Commences Investigation Next Month STEADY SAFE: To Restructure US$281M Debt TIMAH TBK: Divesting Units to Avoid Bankruptcy TJIWI KIMIA: Will Pay Rupiah Bond Interest J A P A N ASAHI BANK: Sells US$3.7B Cross-Held Shares CHUO MITSUI: FSA Approves Holding Company Set-up MYCAL CORPORATION: Unprofitable Stores' Closure Likely NISSAN CONSTRUCTION: Sees Y8.4B In Net Losses SEIBU DEPARTMENT: Closing Losing Outlets SNOW BRAND: S&P Cuts Rating To B+pi From Bbpi K O R E A HYNIX SEMICONDUCTOR: KEB Pres Negotiator of Hynix-Micron Deal HYUNDAI ENGINEERING: Iran Gas Plant Contract Promising HYUNDAI OIL: Unveils Manpower Reduction, Asset Sale HYUNDAI PETROCHEMICAL: Starts Reinforcing Restructuring Measures KOREA ELECTRIC: Launches Restructuring Plan, Cuts 8% of Manpower KOREA ELECTRIC: KDB Seeks to Provide W1.2T Financing KOREA LIFE: February Sale Finalization Likely M A L A Y S I A COUNTRY HEIGHTS: SC Grants Proposed Extension Request CSM CORPORATION: Updates Defaulted Payment Status CSM CORPORATION: Proposes Change of Auditors GEAHIN ENGINEERING: Finalizing Scheme Terms With White Knight IDRIS HYDRAULIC: FIC Supports Proposed Restructuring Exercise LAND & GENERAL: Interlocutory Injunction Decision Pending MAY PLASTICS: Director Abdul Mokti Resigns Units' Posts OLYMPIA INDUSTRIES: Unit's Winding Up Petition Withdrawn PAN MALAYSIA: Trial Date Postponed to April 23 PANGLOBAL BERHAD: Seeks Time Extension to Obtain Approvals SASHIP HOLDINGS: Issues RCLS for Proposed Scheme Settlement SPORTMA CORPORATION: FIC OKs Extension Proposals TAT SANG: Provides Add'l Winding Up Petition Info TECHNO ASIA: Unit Faces Winding Up Petition UNIPHOENIX CORPORATION: Unit Appoints Provisional Liquidator P H I L I P P I N E S REYNOLDS PHILIPPINES: AsiaTrust Bank OKs Rehabilitation Plan RFM CORPORATION: Shareholders Notice For Conversion Of Shares UNIWIDE HOLDINGS: Clarifies Debt Program Report S I N G A P O R E ASTI HOLDINGS: Posts Director's Interest Notice FHTK HOLDINGS: Temasek Holdings Changes Deemed Interest ISOFTEL LTD: Issued Notice of Changes In Shareholder INNO-PACIFIC: Enters Share Sale, Purchase Agreement With LPIT T H A I L A N D MUREX COMPANY: Business Reorganization Petition Filed NAKORNTHAI STRIP: Court Postpones Plan Consideration Date TANAYONG PUBLIC: Files Rehabilitation Petition in Court WONGPAITOON GROUP: Explains 20% Profit, Loss Variance - - - - - - - - ================= A U S T R A L I A ================= ANSETT AUSTRALIA: Jan 30 Tesna Sale Application Hearing Set ----------------------------------------------------------- The Administrators of Ansett Australia advised that the Application v3010/02 regarding approval of Tesna sale was mentioned at 10.15 am Friday 25 January 2002, before Justice Goldberg of the Federal Court of Australia. The hearing of the matter will heard at 10.30am Wednesday 30 January 2002, at the Federal Court of Australia, 305 William St Melbourne 3000. To see Affidavit of Administrator Mark Anthony Korda, sworn 24 January 2002, filed at Federal Court of Australia: Victorian District Registry: V3010/02, go to http://www.bankrupt.com/misc/TCRAP_Ansett0125.pdf BRISBANE BRONCOS: Clarifies Financial Review Article --------------------------------------------------- Brisbane Broncos Limited, in reference to the article on page 17 of Friday edition of The Australian Financial Review, which purports to record John Singleton's intentions regarding Brisbane Broncos Limited, clarified that Magic Millions' present intentions in relation to the Broncos, as announced to the ASX on 24 January 2002, have not changed. Magic Millions does not believe it is required to proceed with the 50 percent proportional bid of 16 cents per share for 50 percent of each shareholder's holding it announced on 29 November 2001, and, in light of the present circumstances, Magic Millions does not presently intend to proceed with that bid. As announced to the ASX on Thursday, Magic Millions is currently seeking the Takeovers Panel's view on whether it is required to proceed with its bid announced on 29 November 2001. When those views are ascertained, Magic Millions will issue a further ASX announcement clarifying its intentions. Magic Millions understands the Takeovers Panel will provide its views before trading commences next week. BRISBANE BRONCOS: Magic Millions Seeks Takeover Panel's Opinion --------------------------------------------------------------- Magic Millions League Pty Limited welcomed the Takeovers Panel's decision that a condition in the bid announced by BB Sports Pty Limited, a wholly owned subsidiary of News Limited, for Brisbane Broncos Limited on 14 December 2001 could lead to unacceptable circumstances and create uncertainty and disturbance in the market. On 22 January 2002 BB Sports announced to the market that it will make a new takeover offer to acquire 50 percent of Broncos shareholders' shares for 17 cents per share, rather than its previous offer to acquire all of Broncos shareholders' shares for 17 cents. In light of this new and superior bid by BB Sports, and consistent with its undertaking to the Takeovers Panel and its obligations under the law, Magic Millions does not believe it is required to proceed with the bid of 16 cents per share it had previously announced on 29 November 2001, and Magic Millions does not presently intend to proceed with that bid. However, Magic Millions is seeking the Takeovers Panel's views on this matter. When those views are ascertained, Magic Millions will issue a further ASX announcement clarifying its intentions. Magic Millions understands the Takeovers Panel will provide its views before trading commences next week. CAPRAL ALUMINIUM: Finalizes 2001 Full Year Results -------------------------------------------------- Capral Aluminium Limited (Capral) is scheduled to release its full year results for 2001 on 19 February 2002. The accounts will reflect some significant restructuring cost during the second half of the year following the closure of the remelt facility in December, the cost associated with employee redundancies in the sales and administration areas and the recognition of some redundant extrusion press lines. The result has yet to be finalized, however it is anticipated to be a small loss for the full year that should not exceed $5.0 million after tax. Although market activities have improved, the Company continues to operate with lower margins as the efficiency and cost initiatives are auctioned. This process will continue to operate throughout 2002, with the Board and Management confident of achieving positive returns for shareholders beyond 2002. The Company is not aware of any recent event that would contribute to the recent strong performance of the share price. TCR-AP reported on September 16, 2001 that Standard & Poor's lowered its long-term corporate credit rating on Capral to double-'B'-minus from double-'B'. At the same time, the rating was removed from CreditWatch with negative implications where it was placed on Aug. 27, 2001. The outlook is negative. CENTRAL NORSEMAN: Gold Election Notice Results ---------------------------------------------- Under the Scheme of Arrangement between Croesus Mining NL and Central Norseman Gold Corporation (CNGC), shareholders in CNGC had until 5.00pm (WST time) Thursday to elect to receive the Combined Alternative from Croesus (comprising $2.03 and 4 Croesus shares for every 10 CNGC shares held) or the Share Alternative (comprising 4 Croesus shares for every 3 CNGC shares held). Any CNGC shareholder who did not make an election to receive the Combined Alternative will automatically receive 4 new Croesus shares for every 3 CNGC shares held. CNGC's share registry has informed Croesus that elections for the Combined Alternative comprised a total of 109 million shares. As announced on 22 January 2002, the 42 million shares that would otherwise have been held by WMC as a result of its decision to receive the Combined Alternative, have been placed principally with institutional investors. TCR-AP reported on January 15 that the company received approval from the Supreme Court of Western Australia to implement a Scheme of Arrangement that will result in the merger of the company with Croesus Mining NL. DIGITAL NOW: Asks US Court to Administer Operations ---------------------------------------------------- Digital Now, Inc (DNI) announced on Friday, January 25, 2002, that Alexander M Laughlin, Counsel to the Official Committee of Unsecured Creditors, has filed with the United States Bankruptcy Court motions to appoint a responsible officer to administer the operations of the Company and to remove the current board. The filings made on 24 January 2002 consist of: (a) Memorandum of points and authorities in support of motion of the official committee of unsecured creditors' to appoint chapter 11 trustee or to appoint responsible officer; and (b) Motions in support the memorandum and requiring an expedited hearing. The Board is disappointed by this development as its actions have been focused on achieving the most favorable outcome for all stakeholders and in particular, focusing on achieving the best possible return to Creditors. Its actions to date have resulted in a significant improvement in the payout that will be achieved by creditors. Importantly, the significant commitment made by the current Board through an extensive due diligence has resulted in the identification of a number of assets which had previously not been adequately disclosed. This is evidenced by the six-fold increase in the bid by one of the interested parties. DIGITAL NOW: Posts Monthly Filing to US Bankruptcy Court -------------------------------------------------------- Digital Now, Inc (DNI) released on Thursday, January 24, 2002, the monthly filing it is required to make to the United States Bankruptcy Court whilst it is under Chapter 11 Administration. This filing covers the month of December 2001. The filing consists of a monthly operating report, which includes these items: (a) Financial Background Information; (b) Income Statement; and (c) Cash Distribution Summary Report; Please note all figures are in US dollars and the year to date figures relate to the period post-petition period (i.e. from 5 October 2001). MONTHLY OPERATING REPORT INCOME STATEMENT (BUSINESS DEBTOR, CASH BASIS) CALENDAR MONTH 12/01/2001 TO 12/31/2001 (ALL FIGURES REFER TO POST-PETITION TRANSACTIONS) THIS MONTH YEAR TO DATE (A) Total Sales/Income (A) 24,363.90 105,217.45 Cost of Sales Purchases of Inventory - Purchases Services - Freight 3,060.76 4,802.04 (B) Total Cost of Sales (B) 3,060.76 4,802.04 (C) Gross Profit (C=A-B) 21,303.14 100,415.41 Operating Expenses Officer Salaries (Gross) 21,860.00 64,020.91 Other Employee Salaries (Gross) 28,768.16 79,887.30 Taxes (Payroll: Employer's Share) 1,095.81 4,069.65 Employee Benefits (Insurance, Pension Plan, etc EE's Share) 1,807.81 9,977.84 Advertising - Automobile Expenses - Meals & Entertainment 425.43 747.07 Insurance (Real Estate) - Insurance (Business) 413.96 2,921.96 Interest - Leases (other than Rent) 1,061.02 2,578.10 Outside Services & Contractors 12,091.89 44,132.14 Professional Fees (Attorney, Accountant) 2,078.60 Rent 1,648.96 31,359.44 Repairs & Maintenance 618.22 Supplies 116.28 147.63 Taxes (Real Property) - Taxes (Other) - Telephone 4,537.68 10,702.22 Travel 2,353.49 6,127.46 Utilities 926.72 1,019.28 US Trustee Quarterly Fee - Other Operating Expenses - Director's Fees 9,531.62 22,918.96 MONTHLY OPERATING REPORT INCOME STATEMENT Postage/Express Delivery 1,173.72 2,726.90 Lodging 817.55 1,064.49 Bank Service Charges 945.94 3,118.13 (D) Total Operating Expenses (D) 89,576.04 290,216.30 (E) Profit/Loss from operations (E=C-D) (68,272.90) (189,800.89) OTHER INCOME (EXPENSES) INTEREST (F) Total Other Income/Expense (F) 3,969.61 26,164.29 (G) Income Before Taxes (G=E+F) (64,303.29) (163,636.60) (H) Income Tax Expense (H) - - (I) Net Income (Loss) (I=G-H) (64,303.29) (163,636.60) EXTRAORDINARY ITEMS Loans Received - - Note Principal (Paid) - - Intercompany Payments - (25,000.00) Capital (Purchases) (Less) Unrecorded Bank Svc Chg - - (J) Total Extraordinary Items (J) - (25,000.00) (K) Cash forward from prior period (K) 405,593.10 (L) Ending Cash Balance (L=I+J+K) 341,289.81 (M) Balance per Bank Statement (M) 350,551.59 (N) Less Outstanding Checks (N) 9,543.26 (0) Add Deposit in Transit (0) 281.48 (P) Reconciled Bank Balance {P=(M-N)+O} 341,289.81 Ending Cash Balance (L) and Reconciled Bank Balance (P) should equal. CASH DISBURSEMENTS SUMMARY REPORT CALENDAR MONTH ENDING DECEMBER 31, 2001 Total Disbursements from Operating Account(See Note 1) 46,577.99 Total Disbursements from Payroll Account(See Note 2) 48,590.68 Total Disbursements from Escrow Account(See Note 3) 12.00 Total Disbursements from any other Account(See Note 4) 143.55 Grand Total Disbursements from all Accounts 95,324.22 NOTE 1 Include in this amount all checks written, wire transfers made from, or any other withdrawal from the general operating account. Exclude only transfers to the debtor-in-possession payroll account, the debtor in possession tax escrow account or other debtor in possession account where the disbursements will be listed on this report. NOTE 2 Include in this amount all checks written, wire transfers made from, or any other withdrawal from the payroll account. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession tax escrow account or other debtor-in- possession account where the disbursements will be listed on this report. NOTE 3 Include in this amount all checks written, wire transfers made from, or any other withdrawal from the tax escrow account. Exclude only transfers to the debtor-in-possession operating account, the debtor in possession payroll account or other debtor in possession account where the disbursements will be listed on this report (This account was set up to hold money received under recap plan) NOTE 4 Include in this amount any other disbursements made by the debtor including (but not limited to) cash paid from a petty cash fund or cash register amounts paid from any other debtor in possession account, and amounts paid from the accounts of others on the debtors behalf (for example, disbursements made from a law firm's escrow account as a result of a sale of property.) ATTACH A COPY OF THE MOST RECENT MONTHLY BANK STATEMENT FOR EACH DEBTOR-IN-POSSESS ACCOUNT. BALANCE SHEET AS OF DECEMBER 31, 2001 CURRENT ASSETS Cash 341,289.81 Pre-Petition Accounts Receivable 10,409.83 Post-Petition Accounts Receivable 86,421.35 Receivable from Foreign Subsidiaries unknown Notes Receivable - Inventory 793,918.63 Other Current Assets: - Prepaids - Total Current Assets unknown FIXED ASSETS Land Buildings Equipment, Furniture & Fixtures 1,464,077.54 Less Accumulated Depreciation (830,415.79) Total Fixed Assets 633,661.75 OTHER ASSETS Deposits 83,954.60 Goodwill 8,979,899.87 Investments in Foreign Subsidiaries unknown Total Other Assets unknown Total Assets unknown POST-PETITION LIABILITIES Accounts Payable 3,846.90 Notes Payable Rents and Leases Payable Taxes Payable Accrued Interest Total-Post Petition Liabilities 3,846.90 Pre-Petition Liabilities (only known amounts as submitted on schedules E&F) Priority Claims (Schedule E - priority amount) 110,736.28 Secured Debts Unsecured Debt (Schedule F) 3,188,451.30 Total Pre-Petition Liabilities 3,299,187.58 Other GAAP Liabilities unknown OWNERS EQUITY (DEFICIT) Capital Stock or Owners Investment 1,640,063.81 Paid in Capital Surplus 39,016,059.56 Retained Earnings (Deficit) Pre-Petition unknown Post-Petition (163,636.60) Total Owners Equity unknown Total Liabilities and Owner's unknown Equity NORMANDY MINING: AGG, Maple-Brown Cease to be Holders ----------------------------------------------------- AngloGold Limited ceased to be a substantial shareholder in Normandy Mining Limited on 24 January, 2002. Maple-Brown Abbott Ltd also ceased to be a substantial shareholder in Normandy Mining Limited on 24 January, 2002. Normandy NFM Limited changed its relevant interest in Otter Gold Mines Limited on 24/January/2002, from (70.27 percent) to 58,840,258 ordinary shares (70.55 percent). ================================ C H I N A & H O N G K O N G ================================ FUJIAN GROUP: Legal Action Filed Against Sino Earn -------------------------------------------------- Fujian Group Limited (the Company) was informed by its substantial shareholder, Sino Earn Holdings Limited (Sino Earn), that a Writ of Summons HCA3557/2001 has been issued on 8th August 2001 (Writ) against Sino Earn by Kincheng Banking Corporation (Kincheng, which has been renamed as Bank of China (Hong Kong) Limited (BOCHK)) claiming inter alia for repayment of outstanding overdraft in the sum of HK$72,246,432.34 together with interest thereon (Outstanding Sum). Sino Earn beneficially holds 344,568,000 shares of the Company (Sino Earn's Shareholding) representing about 32.07 percent of the entire issued shares of the Company (Shares). The Outstanding Sum owed by Sino Earn to Kincheng was secured by a share mortgage of 221,346,000 Shares out of Sino Earn's Shareholding representing about 20.6 percent of the Company's issued Shares. The Directors of the Company have noted that: (i) Sino Earn has been in extreme financial difficulty after the Asian financial crisis and was unable to settle the Outstanding Sum, (ii) Sino Earn has been in negotiation with BOCHK for debt restructuring, and (iii) BOCHK has not yet taken any further legal action against Sino Earn after the issuance of the Writ. The Company, in reference to its current financial position as of 18th December 2001 of its unaudited interim results for 6 months ended 30th September 2001, informed that it is still in severe financial difficulty and continues to negotiate with its major bankers and Sino Earn on restructuring of the Company's debts. Legal representatives have been appointed to engross on drafting the formal debt restructuring legal documents among all major bankers of the Company and Sino Earn. Trading in the Company's Shares on the Exchange has been suspended at the request of the Company since 16th February 2001. Trading in the Shares will remain suspended. The Company will issue further announcement as and when it is appropriate on the progress of the restructuring process. KELLANE INVESTMENT: Winding Up Petition Hearing Set --------------------------------------------------- The petition to wind up Kellane Investment Limited is scheduled to be heard before the High Court of Hong Kong on February 6, 2002 at 9:30 am. The petition was filed with the court on December 3, 2001 by Bank of China (Hong Kong) Limited whose registered office is situated at 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong. LAP MING: Hearing of Winding Up Petition Set -------------------------------------------- The petition to wind up Lap Ming Enterprises Limited is set for hearing before the High Court of Hong Kong on January 30, 2002 at 10:00 am. The petition was filed with the court on October 31, 2001 by Sinochem International Chemicals (Hong Kong) Ltd. of 47th Floor, Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong. LOYALTEX CHINA: Faces Winding Up Petition ----------------------------------------- The Hongkong and Shanghai Banking Corporation Limited is seeking the winding up of Loyaltex China Limited. The petition was filed on November 20, 2001, and will be heard before the High Court of Hong Kong on January 30, 2002 at 11:30 am. The Hongkong and Shanghai Banking Corporation Limited holds its registered office at No. 1 Queen's Road Central, Hong Kong. MIGHT FOUNDATE: Winding Up Petition Pending ------------------------------------------- Might Foundate Development Limited is facing a winding up petition, which was heard before the High Court of Hong Kong on January 23, 2002. The petition was filed on October 10, 2001 by Strong Bases Import & Export Company Limited whose registered office is situated at Unit 701, East Ocean Center, 98 Granville Road, Tsim Sha Tsui, Kowloon, Hong Kong. NAM FONG: Winding Up Petition Scheduled Today --------------------------------------------- Nam Fong International Holdings Limited, pursuant to the announcement made on October 29, 2001 regarding a winding-up petition against the Company for the claim of approximately HK$16 million by a creditor, advised that the hearing of the winding-up petition held on January 23, 2002 has been adjourned to January 28, 2002. The Company has already reached a mutual consensus with the creditor and has signed a consent summons in which the Company agrees to settle the whole sum and the relevant legal expenses by the end of March 2002. As the Group is steadily generating income from its rental income, the repayment can be made from this source. There are also alternative sources for repayment, such as proceeds from possible sales of non-core property assets located outside of Guangzhou (no concrete plans as of now), cash and available banking facilities. The consent summons will be approved in the aforesaid adjourned hearing. Further announcement will be made by the Company to inform its shareholders of any material change on the above proceedings. NEW RESTFUL: Petition To Wind Up Scheduled ------------------------------------------ The petition to wind up New Restful Limited is scheduled to be heard before the High Court of Hong Kong on February 27, 2002 at 9:30 am. The petition was filed with the court on December 13, 2001 by Ms. Tang Wai Chun Annie, of 2B, Comfort Center, 108 Old Main Road, Aberdeen, Hong Kong; Mr. Lau Ho Wing Gordon, of 9th Floor, 34 Leighton Road, Hong Kong; Ms. Sham Wai Ling Wyning, of Flat 601, Lung Chun House, Lung Yan Court, Stanley, Hong Kong; Ms. Leung Siu Lan, of Flat 704, Chun Ma House, Ma Hang Estate, Stanley, Hong Kong; Ms. Chim Shu Yan of Flat 1301, Block R, Luk Yeung Sun Chuen, Tsuen Wan and Ms. Mui Yuet Fong of Flat 310, Chun Ma House, Ma Hang Estate, Stanley, Hong Kong. RICH WING: Winding Up Petition To Be Heard ------------------------------------------ The petition to wind up Rich Wing Engineering Company Limited is scheduled for hearing before the High Court of Hong Kong on March 13, 2002 at 9:30 am. The petition was filed with the court on December 20, 2001 by High Profit Transportation Limited whose registered office is situated at Ground Floor, 23 Tai Wong Ha Tsuen, Tsing Yi, New Territories, Hong Kong. WAH TAK: Clarifies Press Articles, Signs Agreement With Mr Chu -------------------------------------------------------------- The Board of Directors (Board) of Wah Tak Fung Holdings Limited (Company), referring to various articles appearing in the newspapers on 23 January 2002 in relation to a possible acquisition by the Company (Possible Acquisition) of a further interest in Hong Kong Satellite Technology Holdings Limited (Hong Kong Satellite), a company in which the Company currently holds an approximately 1.99% interest, and an article appearing in the newspapers on 24 January 2002 in relation to a possible placing of shares by the Company to certain investment funds in Europe and America (Possible Placing), announced that the Company is in preliminary discussions for the Possible Acquisition. Certain investment funds have also approached the Company and expressed an interest in taking up shares of the Company under the Possible Placing and preliminary discussions in relation to the Possible Placing have taken place. At this stage, no agreement has been reached in respect of the Possible Acquisition or the Possible Placing, which may or may not proceed. It is uncertain when these discussions will be concluded or whether any binding legal documentation will be executed for the implementation of the Possible Acquisition or the Possible Placing. As these discussions are still at a preliminary stage, no specific terms for the Possible Acquisition such as the extent of the interest proposed to be acquired, the timing for any such acquisition, pricing or the method of satisfaction of the consideration have been agreed and no specific terms for the Possible Placing such as pricing or the amount of shares proposed to be placed have been decided. The Company will make further announcements to inform shareholders and the public of material development (if any) in respect of the Possible Acquisition and the Possible Placing. In the event that the Possible Acquisition materializes and constitutes a notifiable transaction for the Company under the Rules Governing the Listing of Securities on the Stock Exchange (Listing Rules), the Company will comply with the relevant requirements under the Listing Rules accordingly. The Board also announced that, on 24 January 2002, the Company and Mr Chu entered into a supplemental agreement to the Subscription Agreement pursuant to which the parties agreed to modify the redemption right attaching to the Preference Shares such that any redemption of the Preference Shares will only be made at the option of the Company, instead of the holder of the Preference Shares. Save as mentioned, all other terms and conditions in the Subscription Agreement remain unchanged. A circular of the Company (Circular) containing, amongst others, details of the S&P Agreement, the Deed of Novation and the Subscription Agreement together with a notice convening a special general meeting of the Company for the Shareholders to consider and, if thought fit, to approve, amongst others, the Subscription Agreement and the Deed of Novation will be dispatched to Shareholders on 28 January 2002. Further financial and other information on the Group is contained in the Circular. ================= I N D O N E S I A ================= INDOMOBIL SUKSES: KPPU Commences Investigation Next Month --------------------------------------------------------- The Business Competition Supervisory Commission (KPPU) plans to launch an investigation into the sale of government stakes in PT Indomobil Sukses Internasional next month despite allegations of fraud, Jakarta Post reports. Previously, Commission Chairman Mohammad Iqbal said that according to the law, the Committee has the power to terminate any deals, including that of Indomobil, or a fine of between Rp1 billion and Rp25 billion against the buyer, a consortium led by PT Trimegah Securities, if its investigations prove that the transactions were the result of a conspiracy. "We have strong suspicions that there has been a violation of the law, so we'll launch a preliminary investigation starting on February 1, 2002," he said, adding that the initial stage of the investigation could last up to 30 days and the conclusion of the investigation could take up to 60 days. The Indonesian Bank Restructuring Agency unit PT Holdiko Perkasa sold its 72.63 percent holding in PT Indomobil Sukses Internasional and all related convertible bonds to a Trimegah- led consortium. STEADY SAFE: To Restructure US$281M Debt ---------------------------------------- Publicly listed transport company PT Steady Safe said its creditors have agreed to restructure its US$281 million debt with a hair cut of 35.82 percent, AsiaPulse said on January 14, referring to Corporate Secretary Ratnaningsih's report to the Jakarta Stock Exchange. He added that 35.51 percent of the debt will be repaid under a debt-to-equity swap, 28.34 percent under a debt-to-asset swap and the remaining 0.33 percent in cash. However, Ratnaningsih said that the implementation of the agreement is yet to be decided. TIMAH TBK: Divesting Units to Avoid Bankruptcy ---------------------------------------------- PT Timah Tbk plans to raise Rp50 billion through the sale of four subsidiaries namely, PT Koba Tin, PT Kutaraja Tembaga Raya, PT Asuransi Tugu Mandiri and Plimsoll, this year in a bid to avoid bankruptcy, the Jakarta Post reported, citing company President Erry Riyana Hardjapamekas. "Our main priority now is to save the company from bankruptcy amid plunging tin prices," Hardjapamekas said, adding that the proposed divestment is part of the company's restructuring, which must be approved by the government as majority shareholder. Timah also plans to lay off some 70 percent of its staff after its nine months to September net profit fell 92 percent due to lower world tin prices amid rampant illegal mining. There are 6,000 groups of illegal miners on the islands with a total output of 30,000 tons per year. Erry added that another factor behind the drop in tin prices was the low demand amid the economic slowdown in industrial countries. TJIWI KIMIA: Will Pay Rupiah Bond Interest ------------------------------------------ Tjiwi Kimia will pay interest on a Rp200 billion ($19 million) bond but not the principal, according to DebtTraders analysts, Daniel Fan (852-2537-4111) and Blythe Berselli (1-212-247-5300), citing the Bisnis Indonesia newspaper. "The paper company is taking the middle way between local creditors and foreign creditors. We believe Tjiwi Kimia has somehow to partly service its rupiah bond, because most of which are held by either local pension funds on behalf of its worker or banks that also provide working capital to the paper maker," Fan and Berselli said. Tjiwi Kimia also planned to announce its 2000 results by the end of this month together with the meeting of the steering committee in Jakarta. According to DebtTraders, Tjiwi Kimia's 10.000% bonds due on 2004 (TKIM1) are trading between 19 and 21.500. Go to http://www.debttraders.com/price.cfm?dt_sec_ticker=TKIM1 for real-time bond pricing. ========= J A P A N ========= ASAHI BANK: Sells US$3.7B Cross-Held Shares ------------------------------------------- Asahi Bank has sold Y500 billion of cross-held shares from April through the end of December of last year, according to the bank's interim report on its restructuring scheme disclosed on October, Asia Pulse reported on Thursday. The scheme, compiled ahead of business integration with Daiwa Bank Holdings Inc., set the annual Y500 billion targets for the sale of cross-held shares. Asahi Bank's six-month plan through March 31 focuses on the review of corporate governance, asset quality and profitability. The end of 2001 was a midway point in the reform plan. Asahi Bank plans to lessen its payroll by 1,291 in the second half of this fiscal year, reporting 600 job cuts by the end of December. CHUO MITSUI: FSA Approves Holding Company Set-up ------------------------------------------------ Chuo Mitsui Trust & Banking Co has obtained formal approval from the Financial Services Agency (FSA) for its scheme to set up Mitsui Trust Holdings Inc on February 1, Kyodo News reported on Friday. Following the creation of the holding company, Chuo Mitsui and its wholly owned subsidiary, Sakura Trust & Banking Co, will come under the wing of the new firm. TCR-AP reported that in 2001 Chuo Mitsui posts Y37.37 billion group net loss ending September 30. For the full-year ending March 2002, it expects to post a net loss of Y220 billion and a pre tax loss of Y280 billion. MYCAL CORPORATION: Unprofitable Stores' Closure Likely ------------------------------------------------------- Ailing supermarket chain operator, Mycal Corp will close 20 unprofitable stores in the next two to three months, Nihon Keizai News and AFX News reports. The company plans to inform the employees affected by the planned closures of its ruling later in January, after obtaining authorization from the Tokyo District Court. The Company operates 139 stores, including the Saty supermarket and Vivre specialty store chains. The 20 stores targeted for closure were deemed unable to turn a profit in the near future. Mycal may decide to shut down additional outlets if they continue to lose money. NISSAN CONSTRUCTION: Sees Y8.4B Net Loss ---------------------------------------- Nissan Construction Co. will expect Y8.4 billion (US$62.4 million) group net loss for the fiscal year ending March 31, a downgrade from its prior Y7.4 billion loss forecast made in November, AsiaPulse reports. The Company lowered its earnings estimate after Ikko Jutaku Co. filed for protection from creditors under the Civil Rehabilitation Law. The roughly Y1.1 billion in promissory notes held by Nissan Construction may become uncollectible. SEIBU DEPARTMENT: Closing Losing Outlets ----------------------------------------- Seibu Department Stores Ltd. will close down loss-making stores in rural areas over the next three years, Japan Times reports, citing unnamed company sources. Seibu did not reveal which stores it will close but will review all 25 of its nationwide outlets. The move is part of preparations to merge its business with the Sogo department store group, which collapsed in July 2000 and is restructuring under the guidance of Seibu. The scheme will follow the liquidation of Seiyo Corp., the group's failed real estate company, which is scheduled to take place by the end of February. Because most of Seibu's outlying stores are in leased buildings, Seibu faces penalties of several billion yen if it decides to shut them down. SNOW BRAND: S&P Cuts Rating To B+pi From Bbpi --------------------------------------------- Standard & Poor's on Thursday lowered its 'pi' rating on Japan's Snow Brand Milk Products Co Ltd (Snow Brand) to single-'B'-plus- pi from double-'B'-pi. The downgrade reflects delays in restoring Snow Brand's business and earnings bases, which were substantially weakened after a food poisoning incident in June 2000. In addition, the downgrade reflects Standard & Poor's expectation that a recently disclosed act of fraud--involving the repackaging of imported beef as Japanese beef by the company's consolidated subsidiary Snow Brand Food Co Ltd (2287) in an attempt to obtain government subsidies--will cause heavy damage to Snow Brand's brand image. This will once again undermine the confidence of consumers, retailers, and other business counterparties of the company, and is expected to cause a fall in Snow Brand's market competitiveness and sales. These further delays to the recovery of Snow Brand's earnings will cause the company's already weak credit protection measures to decline further. Without continued liquidity support from Snow Brand's main banks, such as Norinchukin Bank, the current single-'B'-plus-pi rating could be lowered further. Snow Brand Food is a 66 percent consolidated subsidiary of Snow Brand and its sales account for about eight percent of the parent's consolidated sales. It is already making losses, and a likely deterioration in the company's operating performance and financial standing as a result of the beef repackaging incident will place further pressure on Snow Brand's overall earnings and financial standing. To return to profitability, it is critical for Snow Brand to recover its earnings in its core fresh and processed milk products business. However, this business will also suffer knock-on effects from the fraud disclosure. In the dairy market, where product differentiation is difficult and price sensitivity is high, a further deterioration in consumer confidence in Snow Brand's products could cause severe damage to sales. Moreover, the company's weak corporate governance, including its poor risk management and management controls, will hamper its ability to restore its business over time. Snow Brand's financial profile has deteriorated substantially since the food poisoning incident in 2000. The company's debt usage is increasing as a result of the squeeze on its cash flow. This, combined with an erosion of equity resulting from a sizable net loss, could cause its ratio of total debt to capital to exceed 80 percent in fiscal 2001, compared with 69 percent in fiscal 2000. The rating on Snow Brand could be lowered further if the company fails to implement an effective plan to restore its reputation and improve its operating performance and credit protection measures. ========= K O R E A ========= HYNIX SEMICONDUCTOR: KEB Pres Negotiator of Hynix-Micron Deal ------------------------------------------------------------- Manfred Drost, Deputy President of Korea Exchange Bank (KEB), will serve as a key negotiator for the Hynix-Micron strategic alliance deal, Digital Chosun reported on January 23. KEB announced earlier this week that the Manfred Drost and Lee Youn- soo, the bank's Senior Managing Director, left for the United States to join in the ongoing talks between Hynix Semiconductor and Micron Technology of the United States. KEB said that the two negotiators would be joining Park Jong- sup, president of Hynix, who is now staying in Boise, Idaho where the Micron head office is situated. Reports said that Micron offered US$3.1 billion for Hynix's DRAM production plants, to which Hynix's creditors flatly declined, saying the offer is too low. HYUNDAI ENGINEERING: Iran Gas Plant Contract Promising ------------------------------------------------------ DebtTraders analysts, Daniel Fan (852-2537-4111) and Blythe Berselli (1-212-247-5300), said that Hyundai Engineering & Construction is close to winning a $1.2 billion contract for a gas plant in Iran. The Korean contractor reportedly received a verbal promise it will obtain the project. Hyundai Engineering & Construction's 0.125% convertible bond due in 2004 (HYUNENC) trades between 65 and 75. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=HYUNENC HYUNDAI OIL: Unveils Manpower Reduction, Asset Sale --------------------------------------------------- Hyundai Oil Refinery will plan to raise W600 billion in liquidity through manpower reduction and asset sales, Digital Chosun reported on Thursday. President Chung Mong-hyuk disclosed the management scheme for this year in an investor relation conference, participated in by representatives of the firm's bank creditors Thursday. The operator of Oilbank gas retail chain will complete an early retirement plan for 210 employees of its total 1,800 manpower. The company is set to secure a total of W155 billion by selling off poorly performing gas stations, freezing investments and saving costs. The firm set its sales target for 2002 at W5.3 trillion, and planned to cut its total net losses of W320 billion in 2001 to W23 billion in 2002. HYUNDAI PETROCHEMICAL: Starts Reinforcing Restructuring Measures --------------------------------------------------------------- Hyundai Petrochemical Co. has started reinforcing restructuring measures, such as retiring 210 managerial-level employees or 12 percent of its total executives in 2002, according to Korea Herald on Friday. The firm plans to secure W600 billion through self-rescue measures, including W110 billion by selling money- losing gas stations, W430 billion by issuing asset-backed securities and W45 billion by cutting expenses. It will also postpone new investments. The move will improve the firm's productivity and profitability so as to reduce its net losses to W23 billion this year from the estimated W320 billion won incurred in 2001. KOREA ELECTRIC: Launches Restructuring Plan, Cuts 8% of Manpower ---------------------------------------------------------------- Korea Electric Power Corp. (KEPCO) has launched a restructuring step featuring an 8 percent employee reduction in its head office, Digital Chosun said Thursday. KEPCO is planning to relocate 8 percent or 196 staff members of the 2,215 employees at its head office and research center to regional offices. It is also planning to reduce additional workforce at the head office by sending others to its power generation subsidiaries due to spin off soon. Last month KEPCO originally intended to sell a 51 percent stake in Korea Plant Service & Engineering (KPS) as well as management rights to either a company or consortium, but no bids were submitted, TCR-AP reported in December. A previous auction to sell KPS also ended in failure, but it was due to the lack of satisfactory price offers. KEPCO is currently mulling over different options, including a possible third round of auctions. DebtTraders reports that Korea Electric Power Corporation's 8.250% bond due in 2005 (KEPCO11) trades between 107.338 and 107.645. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=KEPCO11 KOREA ELECTRIC: KDB Seeks to Provide W1.2T Financing ---------------------------------------------------- The Korea Development Bank (KDB) aims to provide around W1.2 trillion to Korea Electric Power Corp. (KEPCO) and its six affiliates to finance power station construction and the purchase of related facilities, Korea Times said on Tuesday. A bank source stressed that the financing was originally set at W1.6 trillion but was lessen to W1.2 trillion. KDB has steadily provided KEPCO funding support with outstanding loans now reaching W11 trillion, including W6 trillion for the parent company and W5 trillion for the six affiliates. KOREA LIFE: February Sale Finalization Likely --------------------------------------------- The sale process for ailing insurer Korea Life Insurance may be finalized next month, Maeil Economic Daily and Korea Herald reported on Friday. The report said that talks with two bidders have been narrowed to the sale price. The bidding prices were estimated at about W900 billion ($676 million), inclusive of its 63-story headquarters building in Seoul. A consortium made up of Hanwha Group, Orix Life Insurance of Japan and Australia's Macquarie Life Insurance Co. is competing with MetLife, the biggest life insurer in the U.S. to buy the firm. The government infused W3.5 trillion in public funds into the struggling insurer. Korea Deposit Insurance Corp. wholly owns Korea Life after several injections of public funds. =============== M A L A Y S I A =============== COUNTRY HEIGHTS: SC Grants Proposed Extension Request ----------------------------------------------------- On behalf of the Board of Directors of Country Heights Holdings Berhad (CHHB or the Company), Arab-Malaysian Merchant Bank Berhad (Arab-Malaysian) announced that the Securities Commission (SC) had vide its letter dated 21 January 2002 approved the Company's application for the proposed extension of the tenure of the redeemable unsecured bonds 1996/2001 (Bonds) from 31 December 2001 to 31 December 2005 (Proposed Extension) to extend the tenure of the Bonds for an additional four (4) years to 31 December 2005 as proposed, subject to, amongst others, these conditions: (i) The Proposed Extension is approved by all relevant parties; (ii) The Bonds is required to comply fully with the requirements of FAST (Fully Automated System for Issuing/ Tendering) and RENTAS (Real Time Electronic Transfer of Funds and Securities) systems of Bank Negara Malaysia; and (iii) CHHB is required to report to the SC quarterly of the progress of the proposed divestment of assets charged to the holders of the Bonds, the distribution of divestment sum and the likelihood of redemption or default of the Bonds. The terms of the Proposed Extension approved by the SC are similar to those as approved by the holders of Bonds at a meeting held on 27 December 2001 as announced on even date. CSM CORPORATION: Updates Defaulted Payment Status ------------------------------------------------- CSM Corporation Berhad updated on the status of default in interest payments and principal loan repayments of the CSM Group bank borrowings as of 31 December 2001: Bank lender Facility Limit Type Total Out- Existing of standing amt security default as at Dec 01 Bank Utama Term Loan RM40M Principal RM37.5M Land and (Malaysia) repayment building Berhad and interest payments Bank Utama Overdraft RM80M Principal RM91.0M Land and (Malaysia) repayment building Berhad and interest payments Alliance Bank Term Loan RM2M Principal RM26.6M Land and Malaysia repayment building Berhad and interest payments Bank Islam Malaysia Berhad Trade i)RM10M Trade i)RM9.3M Clean Facilities facilities Overdue ii)RM4M Trade ii)RM3.9M Land & facilities Bldg and Overdue Corporate Guarantee From CSM The loan facility with Alliance Bank Malaysia Berhad will be repaid via the proceeds to be received from the proposed asset disposal, which was announced on 15 January 2002. The proposed asset disposal is currently pending approvals from the relevant authorities and shareholders. The other defaults shall be addressed in conjunction with the Group's efforts to regularize its financial conditions, as required under the Practice Note No. 4/2001 requirements. CSM CORPORATION: Proposes Change of Auditors -------------------------------------------- The Board of Directors of CSM Corporation Berhad (CSM or the Company) announced that CSM had on 21 January 2002 received a letter dated 14 January 2002 from Messrs Arthur Andersen & Co, wherein Messrs Arthur Andersen & Co has given notice in writing to the Directors of their intention to resign as auditors of the Company and its subsidiary companies. The resignation will only take effect upon the appointment of the new auditors at a duly constituted general meeting of the Company. On 24 January 2002, the Company had received a notice of nomination dated 23 January 2002 from one of its shareholders, Datuk Ta Kin Yan, for the appointment of Messrs Deloitte KassimChan, as auditors of the Company for the year ended 31 December 2001 in place of the resigning auditors, Messrs Arthur Andersen & Co, and to hold office until the conclusion of the next Annual General Meeting of the Company at a remuneration to be determined by the Directors (the Proposed Change of Auditors). The Proposed Change of Auditors is subject to and conditional upon approval being obtained from the shareholders of the Company at an Extraordinary General Meeting to be duly convened. A Circular to the shareholders containing the details of the Proposed Change of Auditors together with the Notice of Extraordinary General Meeting will be sent to the shareholders of the Company in due course. GEAHIN ENGINEERING: Finalizing Scheme Terms With White Knight ------------------------------------------------------------- Geahin Engineering Berhad (GEB or Company), in reference to the announcement dated 26 November 2001 wherein GEB announced that it had on 23 November 2001 obtained approval from KLSE for an extension of three (3) months from 26 October 2001 to 25 January 2002 for GEB to submit its Requisite Announcement to KLSE for public release, informed that the Company had on 23 January 2002 submitted an application to the KLSE for a further extension of time of another three (3) months up to 25 April 2002 in the effort to comply with the requirements of paragraph 5.1 (a) of PN4. The extension of time is required as GEB is still in the process of finalizing the terms of the proposed restructuring scheme (Scheme) with the new White Knight, Mayford Garment Industries Group pursuant to the Conditional Agreement entered into on 23 January 2002 between Mayford Garment Industries Group and GEB on the proposed restructuring scheme. As such, GEB is still unable to submit its Requisite Announcement to the KLSE. Public Merchant Bank Berhad has been appointed as the financial advisor for the said proposed restructuring scheme. They will make the said announcement in due course. IDRIS HYDRAULIC: FIC Supports Proposed Restructuring Exercise ------------------------------------------------------------- On behalf of the Board of Directors of Idris Hydraulic (Malaysia) Berhad (IHMB or the Company, Commerce International Merchant Bankers Berhad (CIMB), announced that the Foreign Investment Committee (FIC) had via its letter dated 18 January 2002 stated: (i) that it has no objection to the revised Proposed Restructuring Exercise as announced on 8 September 2001 subject to the same conditions as stated in the previous approval letter dated 23 March 2001 as announced on 28 March 2001; and (ii) that it has rejected the appeal to remove the approval of the Ministry of International Trade and Industry as a condition. The Proposed Restructuring Exercise includes: * Proposed Capital Reconstruction; * Proposed Corporate Restructuring; and * Proposed Debt Reconstruction. LAND & GENERAL: Interlocutory Injunction Decision Pending --------------------------------------------------------- The Board of Directors of Land & General Berhad (L&G), in relation to the status of default in payment of principal sum in respect of a term loan facility and a standby letter of credit facility, informed that the Court has granted a holding over order until decision of L&G's application for interlocutory injunction on 18 April 2002. The Court decision is paired with the condition that disposal of divestment assets of L&G will only be with consent of the Corporate Debt Restructuring Committee and Bayerische Landesbank Girozentrale, the latter of which shall not be withheld unreasonably at which instance, the Court shall decide. MAY PLASTICS: Director Abdul Mokti Resigns Units' Posts ------------------------------------------------------- The Board of Directors of May Plastics Industries Berhad informed that with effect from 23 January 2002 Dato' Zulkifli Bin Abdul Mokti had resigned as a director in these Company subsidiaries: a. May Wilson Holding Limited, Incorporated in Hong Kong a 100 percent owned subsidiary of May Plastics Industries Berhad b. May Sales & Marketing Company Ltd, Incorporated in Hong Hong a 100 percent owned subsidiary of May Wilson Holding Limited Dato' Zulkifli Bin Abdul Mokti, however, remains as a director of May Plastics Industries Berhad. TCR-AP reported early this month that the Company following the implementation of the debt restructuring proposal in the month of December 2001 and hire-purchase and lease creditors of the group (Unsecured Lenders), KSU Holdings Berhad (KSUH) and the said Unsecured Lenders concerned, informed the debts owed to the Unsecured Lenders were regularized with the settlement of the debts by way of shares in KSUH on the basis of RM 2.00 of debt for one (1) new KSUH share of RM1.00 each at an issue price of RM2 per share. OLYMPIA INDUSTRIES: Unit's Winding Up Petition Withdrawn -------------------------------------------------------- The Board of Olympia Industries Berhad (the Company) advised that the winding-up petition against Mascon Sdn Bhd (MSB), a 71 percent owned subsidiary of the Company, filed by Ample Construction and Plumbing (M) Sdn Bhd, had now been withdrawn by the petitioner on 22 January 2002 at the Kuala Lumpur High Court with no order as to costs. The case is now considered close. PAN MALAYSIA: Trial Date Postponed to April 23 ---------------------------------------------- Pan Malaysia Holdings Berhad (the Company), in reference to the announcements on 26 February 2001 and 22 May 2001 pertaining to the suit filed on 17 May 1996 in the High Court of Kuala Lumpur by Loyal Design Sdn Bhd (LDSB) against the Company and all its existing directors, informed that the trial dates previously fixed on 21 January 2002 and 22 January 2002, were vacated and 23 April 2002 has been fixed for mention pending the parties' compliance with case management directions given. Loyal Design Sdn Bhd (LDSB), a wholly-owned subsidiary of Malayan United Industries Berhad (MUI), filed a suit against the Company and all its then existing directors for breach of directors' duties in conducting the affairs of the Company during the period involved with the takeover offer by MUI through LDSB in respect of the Company. The suit also seeks to declare, inter-alia, that various options granted by the Company under the Company's Executive Share Option Scheme are void. PANGLOBAL BERHAD: Seeks Time Extension to Obtain Approvals ---------------------------------------------------------- Pan Global Berhad (PGB) announced that the restructuring proposal is still pending the approvals of the Securities Commission and the Controller of Foreign Exchange, Bank Negara Malaysia (CFE). Approval of the CFE is required because part of the 3.5 percent five (5)-year redeemable convertible secured loan stocks proposed to be issued under the proposed scheme of arrangement pursuant to section 176 of the companies act, 1965 (Scheme) will be issued to a Scheme creditor which is an offshore bank. As such, Commerce International Merchant Bankers Berhad, on behalf of PGB, has applied to the KLSE to seek a further extension of time until 25 April 2002 to obtain the relevant approvals. SASHIP HOLDINGS: Issues RCLS for Proposed Scheme Settlement ----------------------------------------------------------- Commerce International Merchant Bankers Berhad (CIMB), on behalf of the Board of Directors of Saship Holdings Berhad (SHB or Company), formerly known as Westmont Industries Berhad, announced that the Bank Regulation Department of Bank Negara Malaysia (BNM), through their letter dated 18 January 2002, acknowledged, that RM207,130,000 nominal value of Redeemable Convertible Loan Stocks (RCLS) are to be issued as opposed to RM197,312,000 nominal value of RCLS (as previously approved via their letter dated 15 March 2000). Subsequently, on 23 January 2002, the Exchange Control Department of BNM had also given their approval on the issuance of the additional RCLS to facilitate the settlement under the proposed restructuring scheme under section 176 of the companies act, 1965 (Proposed Restructuring Scheme). Therefore, RM207,130,000 nominal value of RCLS is to be issued as opposed to RM197,312,000 nominal value of RCLS (as previously approved via their letter dated 22 March 2000). All other terms and conditions imposed by the Exchange Control Department of BNM via their letter dated 22 March 2000 remain unchanged. SPORTMA CORPORATION: FIC OKs Extension Proposals ------------------------------------------------ On behalf of the Special Administrators of Sportma Corporation Berhad (Special Administrators Appointed), Affin Merchant Bank Berhad, formerly known as Perwira Affin Merchant Bank Berhad, announced that the Foreign Investment Committee (FIC) by its letter dated 21 January 2002, had approved the extension of time until 30 June 2003 for Sportma to comply with the 30 percent bumiputera equity participation in its enlarged issued and paid- up share capital after the Proposed Corporate and Debt Restructuring Scheme (Proposals), which is to be implemented via a newly incorporated company, Harn Len Corporation Berhad. In addition, the FIC has no objection on the amendments to the Proposals as announced on the 3 December 2001. TAT SANG: Provides Add'l Winding Up Petition Info ------------------------------------------------- Tat Sang Holdings Berhad (the Company) furnished additional information, in regards to the material litigation: 1. W & V Marketing Sdn. Bhd. (W &V) had issued a Winding-up petition to Mercuries & Muar Wooden Furniture Mfg Sdn. Bhd. (MMWF), claiming the sum of RM42,384-00 being balance purchase price of goods sold and delivered as of 22 June 2001. No interest rate is charged under the petition served. 2. On 27 June 2001, W & V served on MMWF the Statutory Notice dated 22 June 2001 pursuant to Section 218 of the Companies Act 1965 to pay the sum of RM42,384-00 within three weeks from the service of the said Notice but as of the date of this Petition (i.e. 24 October 2001), no payment has been received since the service of the said Notice and therefore lead to the filing of the Winding-up petition against MMWF. 3. The total cost of investment by Tat Sang Holdings Berhad in MMWF is RM22,962,945 4. MMWF is still placed under receivership thus the financial and operational impact of the Group cannot be determined at this point of time. 5. There shall be no additional expected losses incurred except for additional legal cost in defending the proceedings against MMWF. The Group has since appointed a solicitor to oppose the petition. 6. The W & V had presented the petition to the Court on 24 October 2001 and the petition was served to MMWF on 17 January 2002 (rectification on the date of receipt for the announcement made on 22 January 2002 which is stated as 10 November 2001 but based on the lawyer copy the petition was just served to MMWF on 17 January 2002). By this rectification, the Board wishes that the disclosure of the above winding up met the requirement under Chapter 9 of the new Listing Requirements. TECHNO ASIA: Unit Faces Winding Up Petition -------------------------------------------- The Special Administrators of Techno Asia Holdings Berhad (Special Administrators Appointed) (the Company) announced that a winding-up petition dated 21 January, 2002 has been served on Westmont Power (Kenya) Limited (WPKL), a company incorporated in Kenya, on 23 January, 2001 by East African Power Management Limited (EAPML) in respect of WPKL's refusal to acknowledge or settle alleged outstanding management fees of USD574,355.36. WPKL is contesting this claim. Solicitors have been appointed by WPKL to strike out the proceedings initiated by EAPML. The solicitors have advised that WPKL has strong grounds to strike the proceedings. As a matter of urgency, WPKL's solicitors will file an application to strike the winding-up petition. WPKL is a subsidiary company of Westmont Offshore Sdn. Bhd., which in turn is wholly owned by the Company. UNIPHOENIX CORPORATION: Unit Appoints Provisional Liquidator ------------------------------------------------------------ The Board of Directors of Uniphoenix Corporation Berhad announced that the Company has just been informed by the directors of its subsidiary, Rubfil Sdn Bhd (Rubfil) that Rubfil has appointed a Provisional Liquidator on 19th November 2001 in relation to its Creditors' Voluntary Winding Up. The winding up does not affect the on-going operation of the Group and also does not has any adverse financial impact on the Group. ===================== P H I L I P P I N E S ===================== REYNOLDS PHILIPPINES: AsiaTrust Bank OKs Rehabilitation Plan ------------------------------------------------------------ Asiatrust Bank has approved the rehabilitation and financial restructuring plan of Reynolds Philippines Corp. (RPC), aiming to revive the struggling aluminum manufacturer, the Philippine Star reported on January 25. Asiatrust is the second creditor to approve the plan. The first was Land Bank of the Philippines. RPC Senior Vice President Jose Cervantes said the firm's financial adviser, Penta Capital Investment Corp., has expressed confidence that it would be able to get the approval of at least 67 percent of RPC's creditor banks. Landbank is negotiating with possible investors to figure out a way of restructuring RPC and possibly reopening its manufacturing plant in Cavite. Cervantes said RPC is not aware of any new prospective investor that has expressed interest in saving RPC from its financial problems. RPC had expressed optimism that the approval of its restructuring plan would enable the firm to raise around P400 million of last-in, first-out (LIFO) funds to finance importation of raw materials and provide working capital. RFM CORPORATION: Shareholders Notice For Conversion Of Shares ------------------------------------------------------------- RFM Corporation disclosed to the Philippine Stock Exchange (PSE) on Monday, saying that on March 5, 1997, the Exchange approved subject to the actual exercise of the Conversion Right by the preferred shareholders, the application of RFM Corporation (the Company) to list 254,466,865 common shares, with a par value of P2.00 per share, to cover the underlying shares of the 10 percent convertible preferred shares, at the conversion ratio of 1 common share for every 1 preferred share held. Furthermore, on January 31, 2001, the Company's Board of Directors approved and ratified the amendment of the conversion rate of the preferred shares (disclosed via Circular for Brokers No. 230-2001), dated February 1, 2001), from a conversion ratio of 1 common share for every 1 preferred share to a conversion ratio of 2.34 common shares for every 1 preferred share held. In connection therewith, please be advised that the Company has received notice from preferred shareholders for the conversion of 26,509,660 preferred shares to 62,032,614 common shares. In view thereof, the listing of the 62,032,614 common shares is set for Tuesday, January 22, 2002. This brings the number of common shares listed arising from the conversion of 57,737,586 preferred shares to a total of 105,830,490 common shares. UNIWIDE HOLDINGS: Clarifies Debt Program Report ----------------------------------------------- Uniwide Holdings Inc', in reference to Business World article in the January 18, 2002 entitled, "BPI gives conditional OK to Uniwide debt program", clarified that company received a copy of Bank of the Philippine Islands' comment on Uniwide's Second amendment to the rehabilitation plan. BPI stating its support on the approval of the rehab plan but seeking certain revisions to the proposed settlement terms. The term sheets for the debt settlement of secured creditors, as embodied in the rehab plan, provide uniform principles such as: a. Mode of payment is through dacion en pago One of the objectives of the rehab plan is maximum debt reduction via dacion en pago. Uniwide seeks to reduce its debt to a level that it's projected cashflows can service. b. Cut-off date of debt The rehab plan provides that the cut-off date in determining the amount of debt to be liquidated via dacion is principal plus interest and all loan related fees as of June 30, 1999. The full amount as of cut-off date will be paid with no haircut. c.Transfer of Ownership is via the most cost efficient scheme The dacion en pago also covers expenses to effect the transfer of properties to the banks. taking into account the limited real estate assets of Uniwide, the dacion shall be via the most cost efficient scheme that is acceptable under the SEC rules on the rehabilitation of companies under suspension of payment. d. Leaseback arrangement on operating stores The rehab plan's projected cashflows show that Uniwide will be able to generate funds to service the operational and debt related requirements. However, operating requirements assume certain levels of costs. In line with this, Uniwide proposes to lease the operating properties at a lease rate that Uniwide operations can support and sustain. ================= S I N G A P O R E ================= ASTI HOLDINGS: Posts Director's Interest Notice ----------------------------------------------- Asti Holdings Limited posted a notice of changes in Director Cheng Chai Hong interests: Date of notice to company: 24 Jan 2002 Date of change of interest: 24 Jan 2002 Name of registered holder: Cheng Chai Hong Circumstance giving rise to the change: Others Please specify details: Acceptance of Share Options granted Shares held in the name of registered holder No. of options of the change: 18,000 % of issued share capital: Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: S$1.00 (exercise price: S$0.29) No. of options held before change: 0 % of issued share capital: No. of options held after change: 18,000 % of issued share capital: Holdings of Director including direct and deemed interest Deemed Direct No. of options held before change: 0 0 % of issued share capital: No. of options held after change: 0 18,000 % of issued share capital: Total shares: 0 18,000 FHTK HOLDINGS: Temasek Holdings Changes Deemed Interest ------------------------------------------------------- FHTK Holdings Ltd posted a notice of changes in substantial shareholder Temasek Holdings (Private) Ltd's deemed interests: Date of notice to company: 21 Jan 2002 Date of change of interest: 08 Jan 2002 Name of registered holder: DBS Nominess 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: 810,000 % of issued share capital: 0.06 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: S$0.11 No. of shares held before change: 85,454,279 % of issued share capital: 6.94 No. of shares held after change: 84,644,279 % of issued share capital: 6.88 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 85,454,279 0 % of issued share capital: 6.94 0 No. of shares held after change: 84,644,279 0 % of issued share capital: 6.88 0 Total shares: 84,644,279 0 Temasek Holdings is deemed to have an interest in these shares under Section 7 of the Companies Act, Cap 50. ISOFTEL LTD: Issued Notice of Changes In Shareholder ---------------------------------------------------- Isoftel Ltd issued a notice of changes in substantial Shareholder/Director Au Sai Chuen: Date of notice to company: 24 Jan 2002 Date of change of interest: 23 Jan 2002 Name of registered holder: The Central Depository (Pte) Ltd for account of AU SAI CHUEN 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: 1,250,000 % of issued share capital: 0.55 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: 1,000,000 at S$0.14378 per share 250,000 at S$0.145 per share No. of shares held before change: 1,275,000 % of issued share capital: 0.56 No. of shares held after change: 25,000 % of issued share capital: 0.01 Holdings of Director/Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 40,275,000 1,275,000 % of issued share capital: 17.6 0.56 No. of shares held after change: 40,275,000 25,000 % of issued share capital: 17.6 0.01 Total shares: 40,275,000 25,000 Percentage of shareholding calculated based on 228,868,152 shares in issue as of January 24, 2002. INNO-PACIFIC: Enters Share Sale, Purchase Agreement With LPIT ------------------------------------------------------------- The Board of Directors of Inno-Pacific Holdings Ltd (the Company) announced that its subsidiary, Shakey's Holdings Pte Ltd (Shakey's) has on 24 January 2002 entered into a Share Sale and Purchase Agreement (the Agreement) with Lighten Point Investment Ltd (LPIT or the Purchaser), a company incorporated in the British Virgin Islands. The Agreement is in respect of the sale of the entire issued share capital of Shakey's wholly owned subsidiary, Shakey's International Limited, (SIL) to the Purchaser for cash consideration of S$1,250,000. Completion of the Agreement shall be within 60 days from the date of the Agreement. Information on SIL SIL, a company incorporated in Hongkong, is the franchise owner of the Shakey's trademark and system worldwide except United States of America, Japan and Philippines. It has a master franchisee in each of the territory of Malaysia and Mexico. In China and Canada, it has only one franchisee each. SIL source of income is the collection of royalties and franchise fees from these franchisees while providing operational and other support to them. Rationale As at 31 December 2000, SIL has incurred an accumulated loss of about S$27 million and is expecting an operating loss of about S$550,000 for the year ended 31 December 2001. For the past years, SIL has not been able to develop the Shakey's franchise system successfully and the Company and Shakey's are of the view that the continued ownership of SIL is not in the best interest of the Company and Shakey's. The Company is rationalizing its investments and operations and the disposal of SIL will allow the Company and Shakey's to focus on its core business of Shakey's Inc., which is the franchiser of the Shakey's trademark and systems in the United States of America. Shakey's Inc., has more than 45 franchisees, which collectively own 70 outlets in the United States of America. Financial effects As at 31 December 2000, the audited NTA for the IPH Group was S$26.1million. Hence, on a proforma basis, the sale of SIL would have had no material impact on the IPH Group's audited NTA as at 31 December 2000 had the sale of SIL taken place on that date. Directors and substantial shareholders' interest None of the Directors or substantial shareholders of the company has any interest, direct or indirect in the above sale of SIL. =============== T H A I L A N D =============== MUREX COMPANY: Business Reorganization Petition Filed ----------------------------------------------------- Murex Company Limited (DEBTOR), engaged in real estate development and golf club business, filed its Petition for Business Reorganization in the Central Bankruptcy Court: Black Case Number 114/2544 Red Case Number 310/2544 Petitioner: SIAM CITY BANK PUBLIC COMPANY LIMITED Planner: SIAM CITY M. B. COMPANY LIMITED AND M. THAI CORPORATE RESTRUCTURING COMPANY LIMITED Debts Owed to the Petitioning Creditor: Bt3,488,511,758.78 Date of Court Acceptance of the Petition: February 16, 2001 Date of Examining the Petition: March 19, 2001 at 9.00 AM Date of Continuing the Examination of the Petition: April 9, 2001 at 9.30 AM Date of Continuing the Examination of the Petition: April 18, 2001 at 9.30 AM Court Order for Business Reorganization on April 26, 2001 and Appointing SIAM CITY M. B. COMPANY LIMITED & M. THAI CORPORATE RESTRUCTURING COMPANY LIMITED to be the Joint Interim Executives Announcement of Court Order for Business Reorganization and Appointment of the Joint Interim Executives in Matichon Public Company Limited and Siam Rath Company Limited: May 11, 2001 Announcement of Court Order for Business Reorganization and Appointment of the Joint Interim Executives in Government Gazette: June 14, 2001 Court Order for Appointment of Planner: June 7, 2001 Announcement of Court Order for Appointment of the Planner in Matichon Public Company Limited and Siam Rath Company Limited: June 18, 2001 Announcement of Court Order for Appointment of the Planner: in Government Gazette: July 24, 2001 Deadline for the Planner to submit the Reorganization Plan to the Official Receiver: October 24, 2001 Planner postponed the date of submitting the reorganization plan #1st to November 24, 2001 Planner postponed the date of submitting the reorganization plan #2nd to December 24, 2001 Appointment date for the Meeting of Creditors to consider the Reorganization Plan: January 30, 2002 at 9.30 am. Convention Room 1105, 11th Floor, Bangkok Insurance Building, South Sathorn Road Contact: Miss Amornrhat Tel, 6792525 ext. 132 NAKORNTHAI STRIP: Court Postpones Plan Consideration Date --------------------------------------------------------- Maharaj Planner Company Limited, in its capacity as the Planner of Nakornthai Strip Mill Public Company Limited (NSM), informed that the Court has postponed the date to conduct a hearing and consideration of the Rehabilitation Plan, which is supposed to be held on January 24, 2001, until February 28, 2002 at the Central Bankruptcy Court. TANAYONG PUBLIC: Files Rehabilitation Petition in Court ------------------------------------------------------- Tanayong Public Company Ltd. (the Company) on January 22, 2002, has filed a Petition for Rehabilitation with the Central Bankruptcy Court, Bangkok. This alternative is the most transparent and good for all parties concerned, according to a statement in Stock Exchange of Thailand. The Court accepted the Petition and set the date for hearing on February 18, 2002. WONGPAITOON GROUP: Explains 20% Profit, Loss Variance ----------------------------------------------------- Wongpaitoon Group Public Company Limited, referring to the quarterly income statement ended March 31, 2000 (Q1/2000) and March 31, 2001 (Q1/2001), had the net loss of Bt513.07 million and Bt129.82 million, respectively, for these reasons: 1. The Company has improved the productive efficiency and minimized cost. With these efforts, the gross loss of Bt175.63 million in the Q1/2000 turned to the gross profit of Bt3.38 million in Q1/2001 with the quarterly sale of 723.81 million and 567.68 million and the cost of sale of Bt899.44 million and Bt564.30 million, respectively. 2. A decrease in the Company's expenses by Bt45.75 million could be clarified as: Salary and Wages 7.82 million Adjustment in investment item 24.87 million Export expenses 6.30 million Advisor Fee 3.18 million Export Sale Fee 3.58 million 3. The reduction of interest payment from Bt107.31 million in Q1/2000 to Bt38.37 in Q1/2001 as a result of the debt restructuring. 4. In the year 2000, the company realized loss from debt restructuring pursuant to the rehabilitation plan in the approximate amount of Bt158 million. 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. 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