/raid1/www/Hosts/bankrupt/TCRAP_Public/020206.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, February 6, 2002, Vol. 5, No. 26
Headlines
A U S T R A L I A
ANALYTICA LIMITED: Issues Commitment-Based Entity Report
BRISBANE BRONCOS: Magic Declares New 18 Cent Takeover Bid
BRISBANE BRONCOS: Takeover Panel Accepts Magic Undertaking
FROGGY MUSIC: Undergoes Liquidation
GAMES 'R': Deed of Company Arrangement Terminated
QANTAS AIRWAYS: Welcomes Federal Court Adjournment
QUOIN (INT): Sells Gizo, King Solomon Hotels
TRANSURBAN GROUP: Posts Infrastructure Bonds Distribution
UECOMM LIMITED: Incurs $58.6M Net Operating Loss
C H I N A & H O N G K O N G
CHINA HERO: Faces Winding Up Petition
LONG CAIN: Winding Up Petition To Be Heard
NORTHEAST ELECTRIC: Requests Suspension of Trading
SEAPOWER RESOURCES: Petition To Wind Up Pending
SINO ACT: Winding Up Petition Set For Hearing
YIU FAI: Winding Up Petition Slated For Hearing
YIU FUNG: Winding Up Petition Hearing Set
I N D O N E S I A
BARITO PACIFIC: Suspended After Bankruptcy Petition Report
SEMEN GRESIK: February 26 EGM Scheduled
J A P A N
KOTOBUKIYA CO: Aeon Prepares For Food Outlet Acquisition
NEC CORPORATION: Moody's Downgrades Debt Rating to Baa2
NEC CORPORATION: US Affiliate Signs Agreement With ALLTEL
SPORTS SHINKO: Obtains Affiliates' Legal Protection
SNOW BRAND: Splits Food Company Four Ways
TOSHIBA CORP: Moody's Lowers Rating To Baa1; Outlook Negative
WORLD WING: Files for Bankruptcy Protection
K O R E A
HYNIX SEMICONDUCTOR: CEO to Resume Micron Tie-Up Negotiations
HYUNDAI GROUP: Govt Gives Financial Units Sale to Expert
SSANGYONG CORPORATION: Creditors Delay Debt Rescheduling
M A L A Y S I A
CHASE PERDANA: Awaits FI Lenders' Workout Scheme Response
HOTLINE FURNITURE: Proposed Acquisition Exercise Terminated
L&M CORPORATION: Books RM190M Jan Defaulted Interest Payment
MAY PLASTICS: Signs MBO Agreement With Quintanilla
MBF CAPITAL: Provides Winding Up Petition Add'l Info
MBF HOLDINGS: In the Midst of Finalizing Proposed SOA
PLANTATION & DEVELOPMENT: Proposed Scheme Aborted
SASHIP HOLDINGS: BNM Bank Regulation Dept Allows RCLS Addition
SPORTMA CORPORATION: Gets SC's Nod on Proposal
SRI HARTAMAS: Proposes Scheme of Arrangement
SRIWANI HOLDINGS: Updates Financial Regularization Status
TECHNO ASIA: SAs Finalizing Workout Proposal
P H I L I P P I N E S
BAYAN TELECOMMUNICATIONS: Extelcom Seeking Merger With Unit
MAYNILAD WATER: Creditors to Grant US$100M Loan Time Extension
METRO PACIFIC: Explains Fort Bonifacio Proj Acquisition Report
MONDRAGON INTERNATIONAL: Clarifies Business World Report
NATIONAL POWER: Moody's Changes Rating Outlook to Stable
PHILIPPINE AIRLINES: Fare Increase Approved on January 28
NATIONAL BANK: Tan Needs 40 Signatures for Rehabilitation MOA
RFM CORPORATION: Former Subsidiary Issues Dividend Payment
UNIWIDE HOLDINGS: Clears Opposition In Rehab Plan Report
S I N G A P O R E
ADROIT INNOVATIONS: Issues Shareholder's Interest Notice
CREATIVE TECHNOLOGY: Posts Shareholder's Interest Notice
KEN AIR: Applies for Provisional Liquidation
T H A I L A N D
DELTA ELECTRONICS: Provides Inspection Update
DELTA ELECTRONICS: SET Lifts `H' Sign
LOXLEY PUBLIC: Reports Capital Increase Proceed Usage
P.E.P. FERTILIZER: Petition for Business Reorganization Filed
- - - - - - -
=================
A U S T R A L I A
=================
ANALYTICA LIMITED: Issues Commitment-Based Entity Report
---------------------------------------------------------
Analytica Limited issued its quarterly report for entities based
on its commitments:
Name of entity
Analytica Limited (Subject to Deed of Company Arrangement)
ABN Quarter ended ("current quarter")
12 006 464 866 31/12/2001
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows related to Current Year to date
operating activities Quarter (6 months)
AUD'000 AUD'000
1.1 Receipts from customers - 26
1.2 Payments for
(a) staff costs (72) (179)
(b) advertising & marketing - -
(c) research & development - (101)
(d) leased assets - (1)
(e) other working capital (63) (162)
1.3 Dividends received - -
1.4 Interest and other items of
a similar nature received 4 8
1.5 Interest and other costs of
finance paid - -
1.6 Income taxes paid - -
1.7 Other (provide details if material) (204) (352)
1.8 Net Operating Cash Flows (335) (761)
Cash flows related to investing activities
1.9 Payment for acquisition of:
(a) businesses (item 5) - -
(b) equity investments - -
(c) intellectual property - -
(d) physical non-current assets - -
(e) other non-current assets - -
1.10 Proceeds from disposal of:
(a) businesses (item 5) (128) 162
(b) equity investments - -
(c) intellectual property - -
(d) physical non-current assets 18 18
(e) other non-current assets - -
1.11 Loans to other entities - -
1.12 Loans repaid by other entities - 2
1.13 Other (provide details if material) - -
Net investing cash flows (110) 182
1.14 Total operating and
investing cash flows (445) (579)
Cash flows related to financing activities
1.15 Proceeds from issues of
shares, options, etc. 300 300
1.16 Proceeds from sale of
forfeited shares - -
1.17 Proceeds from borrowings 23 23
1.18 Repayment of borrowings - (2)
1.19 Dividends paid - -
1.20 Other (provide details if material) - -
Net financing cash flows 323 321
Net increase (decrease) in cash held (122) (258)
1.21 Cash at beginning of quarter/
year to date 404 540
1.22 Exchange rate adjustments to item 1.20 - -
1.23 Cash at end of quarter 282 282
Cash at end of quarter represents; $'000
Cash held by administrators to meet cost of administration
under creditor claims 86
Cash held by Graesser Pty Ltd to meet the ongoing research
conducted by the R & D syndicate. 196
282
PAYMENTS TO DIRECTORS OF THE ENTITY AND ASSOCIATES OF THE
DIRECTORS PAYMENTS TO RELATED ENTITIES AND ASSOCIATES OF THE
RELATED ENTITIES
Current Quarter
AUD'000
1.24 Aggregate amount of payments to
the parties included in item 1.2 Nil
1.25 Aggregate amount of loans to the
parties included in item 1.11 Nil
1.26 Explanation necessary for an understanding
of the transactions N/A
NON-CASH FINANCING AND INVESTING ACTIVITIES
2.1 Details of financing and investing transactions which have
had a material effect on consolidated assets and liabilities
but did not involve cash flows
In December 2001, Analytica Ltd acquired from Psiron Ltd its
diagnos-tic business for a total purchase price of $1,600,000.
The funding for this purchase was through a loan from Psiron
Ltd, which is repayable over a period of eight years.
The company has issued 8,000,000 cumulative redeemable
convertible preference shares to Psiron Ltd for $800,000. As at
31 December, $300,000 of this was received from Psiron and paid
to the administrator under the terms of the Deed of Arrangement.
The balance of $500,000 has been used to offset the loan
repayable to Psiron under the come and go facility to recover
the interest payable to Psiron.
Psiron has also paid $34,374 of expenses on behalf of Analytica.
2.2 Details of outlays made by other entities to establish or
increase their share in businesses in which the reporting entity
has an interest
N/A
FINANCING FACILITIES AVAILABLE
Add notes as necessary for an understanding of the position.
Amount Amount
available used
AUD'000 AUD'000
3.1 Loan facilities Nil Nil
3.2 Credit standby arrangements Nil Nil
RECONCILIATION OF CASH
Reconciliation of cash at the end Current Previous
of the quarter (as shown in the quarter quarter
consolidated statement of cash flows) AUD'000 AUD'000
to the related items in the accounts
is as follows.
4.1 Cash on hand and at bank 268 391
4.2 Deposits at call - -
4.3 Bank overdraft - -
4.4 Other (provide details) 14 13
Total: cash at end of quarter (item 1.22) 282 404
ACQUISITIONS AND DISPOSALS OF BUSINESS ENTITIES
Acquisitions Disposals
(item 1.9(a)) (Item 1.10(a))
5.1 Name of entity N/A Phytomed Laboratories
P/L Biomatrix P/L
5.2 Place of incorporation
or registration - Both in Victoria
5.3 Consideration for
acquisition or disposal - -
5.4 Total net assets - Deficiency of net
assets $151,000
5.5 Nature of business - Manufacture and sale
of Modern Chinese
Medicines
COMPLIANCE STATEMENT
1. This statement has been prepared under accounting policies,
which comply with accounting standards as defined in the
Corporations Law or other standards acceptable to ASX.
2. This statement does give a true and fair view of the matters
disclosed.
BRISBANE BRONCOS: Magic Declares New 18 Cent Takeover Bid
---------------------------------------------------------
Magic Millions League Pty Limited, a company associated with
John Singleton and Magic Millions Promotions Pty Limited,
announces a new takeover bid for Brisbane Broncos Limited.
Under the new bid, Magic Millions will offer 18 cents per
Broncos share. Shareholders can choose to accept for all of
their shares or for any number of their shares.
The Takeovers Panel has now confirmed that Magic Millions is not
required to proceed with, and Magic Millions will not be
proceeding with, the 16 cent proportional takeover bid for 50
percent of the shares held by Broncos shareholders which it
announced on 29 November 2001.
The new bid will be subject to conditions to the following
effect:
* none of the usual "prescribed occurrences" occur;
* at the end of the offer period, Magic Millions' voting
power in Broncos must be 45 percent or greater and must also be
higher than the aggregate voting power in Broncos of The News
Corporation Limited and its associates; and
* the modification to section 652B of the Corporations Act,
that the Takeovers Panel has granted to Magic Millions (referred
to below), remains in force throughout the offer period.
John Singleton has said: "We have indicated that Magic Millions
wants to run the Broncos better than the existing Board and
management. We believe Magic Millions will be in a position to
do just that if it obtains control of the Broncos. It would be
wonderful for Rugby League generally, and the Broncos
specifically, if the Broncos off field performance was as good
as their on field performance. It's time to end this off field
legal feeding frenzy. Magic Millions' new bid gives all Broncos
shareholders the opportunity to exit as much or as little of
their holding in Broncos as they please at 18 cents per
share. For the good of the game, as well as the shareholders,
News should either take up the Magic Millions offer or make all
other shareholders, including us, a better one."
On 22 January 2002, BB Sports Pty Limited (a wholly owned
subsidiary of News) announced a 17 cent proportional bid for 50
percent of the shares held by each Broncos shareholder.
The Takeovers Panel has granted Magic Millions a modification to
section 652B of the Corporations Act. That modification permits
Magic Millions to withdraw its bid if, before or during its
offer period, the voting power of News (or some other person
other than Magic Millions and its associates) becomes greater
than 50 percent.
Currently, Magic Millions' voting power in Broncos is 15.66
percent and News' is 44.91 percent.
Magic Millions intends to ask the directors of Broncos to agree
that Magic Millions may send its offers to Broncos shareholders
earlier than the time prescribed under the Corporations Act so
as to ensure that Broncos shareholders have the greatest
possible time to consider and compare Magic Millions' bid and BB
Sports' bid and also to ensure that if News' voting power
becomes greater then 50 percent, and Magic Millions elects to
withdraw its bid, shareholders who have accepted Magic Millions'
offer will have the maximum possible time to accept into BB
Sports' bid.
Magic Millions intends to provide its bidder's statement to
ASIC, Australia Stock Exchange and Broncos shortly.
BRISBANE BRONCOS: Takeover Panel Accepts Magic Undertaking
----------------------------------------------------------
The Panel advises that it has accepted undertakings from Magic
Millions in relation to Magic Millions' application under
section 657EA of the Corporations Act requesting a review of the
decisions in the Brisbane Broncos Nos 1 and 2 proceedings. This
follows protracted consultation with the parties in the
contested takeover, and a further application to the Panel.
Magic Millions has offered Broncos shareholders, for all of
their shares, a bid price of 18 cents.
The bid will be conditional on Magic Millions acquiring more
than 45 percent of the shares in Broncos and having a greater
relevant interest in Broncos shares than News Corporation and
its associates at the close of Magic Millions' bid.
The proposed offer by Magic Millions is on sufficiently better
terms for Broncos shareholders that the Panel considered it
reasonable to allow it to be subject to the minimum acceptance
condition. Magic Millions will need to gain acceptances for 75
percent of the outstanding (non Magic Millions and non BB
Sports) shares to achieve 45 percent acceptance. The Panel will
not require Magic Millions to proceed with its announced bid for
50 percent of Broncos shares at 16 cents, in addition to the
increased bid.
The Panel granted Magic Millions a modification to section 652B
of the Act allowing Magic Millions to withdraw its bid if
another person gains control over more than 50 percent of
Broncos shares during the Magic Millions bid period. The Panel
granted the modification after ASIC declined to do so on
Thursday. In part, ASIC declined because the application for the
modification related to ongoing Panel proceedings.
The purpose of the withdrawal modification is to allow Broncos
shareholders who would prefer to receive 18 cents for 100
percent of their shares to accept the Magic Millions bid while
still having an opportunity to accept the BB Sports bid if it
turns out to be successful. To ensure that opportunity is as
long as possible, if BB achieves 50 percent the Panel has
required Magic Millions to decide immediately whether it will
withdraw its bid or waive all conditions and pay for all the
shares it receives.
The Panel has required Magic Millions to set out clearly in its
bidder's statement how Broncos shareholders can gain the
benefits of that opportunity. It has also required Magic
Millions immediately to write to all Broncos shareholders, make
announcements to ASX and ASIC, and to advertise in national and
local newspapers if it withdraws its bid.
The Panel believes that the protections it has built into the
process for Broncos shareholders will allow the Broncos board to
consider recommending to its shareholders that they accept the
Magic Millions bid in the absence of a higher offer.
The Panel intends that Broncos shareholders will have at least
one week in which to accept the BB Sports bid if Magic Millions
withdraws its bid. If BB Sports' voting power in Broncos
increases to more than 50 percent in the last week of BB Sports'
offer, then BB Sports' offer is automatically extended for a
further two weeks under section 624 of the Act. If BB Sports
increases to more than 50 percent earlier in its bid the Panel's
modification requires Magic Millions to advise Broncos
shareholders immediately whether its bid is withdrawn, or is
unconditional. This will allow Broncos shareholders at least a
week to consider their further actions.
In order to allow Broncos shareholders to have both offers open
before them for three weeks, the Panel has requested that the
board of Broncos consent to shortening the period between Magic
Millions giving its bidder's statement to Broncos and Magic
Millions dispatching its offers. The period would be shortened
from fourteen to seven days. The Panel understands that the
board of Broncos is considering this request.
The Magic Millions bid will also be conditional on no prescribed
occurrences occurring in relation to Broncos during the Magic
Millions bid period.
The sitting Panel in this review application was Simon McKeon
(sitting President), Ian Ramsay and Carol Buys.
The Panel will publish its reasons for this decision on its
website in due course.
Nigel Morris
DIRECTOR
Takeovers Panel
Ph: +61 3 9655 3501
nigel.morris@takeovers.gov.au
FROGGY MUSIC: Undergoes Liquidation
-----------------------------------
The Australian Securities and Investments Commission (ASIC)
obtained on Monday consent orders in the Supreme Court of New
South Wales winding up Froggy Music Pty Ltd and PAL Holdings Pty
Ltd.
Paul Weston and Neil Cussen of Horwarth Accountants were
appointed as joint liquidators of the companies.
On 13 November 2001 ASIC obtained consent orders in the Supreme
Court of NSW in relation to an unregistered managed investment
scheme promoted by Mr Karl Suleman and companies associated with
Mr Suleman, in particular Karl Suleman Enterprizes Pty Ltd.
On 26 November 2001 ASIC made an application to join PAL
Holdings Pty Ltd to the proceedings and sought orders for the
company to be wound up.
On the 16 and 31 January 2002 respectively, ASIC obtained
consent orders winding up each of the Froggy Mobile companies
and Froggy Holdings.
This matter is next before the Court at 10am on 18 February
2002.
ASIC's investigation is continuing and no further comment will
be made at this time.
GAMES 'R': Deed of Company Arrangement Terminated
-------------------------------------------------
The Directors of Games 'R' Us Australia Limited (GRU) announced
the Deed of Company Arrangement entered into between the
Joint administrators Mr Mark Reilly and Mr John Lord and GRU
dated 13 May 2001 has terminated.
Attached is a pro forma unaudited balance sheet for GRU which
appeared in GRU's notice of general meeting lodged with ASX on
21 November 2001.
PRO FORMA UNAUDITED BALANCE SHEET FOR GAMES'R'US AUSTRALIA
LIMITED
$000's
Current Assets
Cash at bank 1,300
Inventory, at cost 508
1,808
Non current assets
Plant and Equipment 100
Interests in Games'R'Us Franchise Model 153
253
Total Assets 2,061
Current Liabilities
Accounts Payable -
Net Assets 2,061
Equity
Contributed Equity (share capital
(49,272,092 shares)) 5,267
Accumulated losses (3,206)
Net Equity 2,061
The securities of Games 'R' Us Limited (the Company) will be
reinstated to official quotation at the commencement of trading
on Tuesday 5 February 2002 following the completion of fund
raising and the termination of the Deed of Company Arrangement.
QANTAS AIRWAYS: Welcomes Federal Court Adjournment
--------------------------------------------------
Qantas Airways Limited was pleased by Monday's decision by the
Federal Court to defer until Thursday the hearing of a claim by
the Australian Manufacturing Workers Union and the Australian
Workers Union for an injunction against the airline.
Executive General Manager, Aircraft Operations, David Forsyth
said Qantas had moved to put aside maintenance employees after
enduring more than five months' of bans by the two unions.
"We believe our action not to pay employees who are engaging in
industrial action is strictly in accordance with our obligations
under the Workplace Relations Act," he said.
"Throughout the dispute our overriding priority has been to
negotiate a new Enterprise Bargaining Agreement with our
maintenance employees, 60 per cent of whom have already settled.
"It is only the AMWU and the AWU who continue to take industrial
action."
Mr Forsyth said senior Qantas managers had been conducting a
series of meetings with shopfloor maintenance staff to identify
a solution to the current dispute.
"However any further proposal must be consistent with the wages
pause agreed with 10 other Qantas unions," he said.
"Qantas will appear before the Australian Industrial Relations
Commission again on Wednesday where we will continue to seek a
resolution."
Mr Forsyth said Qantas wanted to assure the traveling public
that there was no impact on the airline's day-to-day schedules
and that Qantas would continue to meet its maintenance
requirements.
Media Enquiries: Des Sullivan - Telephone (02) 9691 3742
Further information and media releases can be found at the
Qantas internet website: www.qantas.com.au.
QUOIN (INT): Sells Gizo, King Solomon Hotels
--------------------------------------------
The Board of Directors of Quoin (Int) Limited announce that the
Company has entered into a contract to sell the Gizo Hotel,
Gizo, Solomon Islands and King Solomon Hotel, Honiara, Solomon
Islands.
Sale price for the two hotels is $1,500,000 and settlement is
scheduled for 29 March 2002. This contract is subject to Solomon
Islands FIRB, finance and statutory approval following the
ratification of shareholders at a forthcoming general meeting of
shareholders.
The Hotels have been sold as part of the Quoin (Int) Limited
strategy to divest itself of hotel assets in the economically
and politically difficult areas of Solomon Islands and Papua New
Guinea.
This decision is a planned and coordinated step to reduce the
Company's debt including the onerous loan conditions of 19.5
percent per annum interest rates which place a heavy toll on the
already difficult business situation imposed upon the hotels by
the current political tensions.
The surplus sale proceeds are to be applied to retire company
debt.
TRANSURBAN GROUP: Posts Infrastructure Bonds Distribution
---------------------------------------------------------
Transurban Group advised that the distributions foreshadowed at
the Annual General Meeting on 27 November 2001 will be paid on
26 February 2002. The distributions consist of:
* The final distribution on the Equity Infrastructure Bonds
(EIBs) issued by Transurban City Link Limited (TCL), which was
deferred from December 1999 (the EIB distribution); and
* The initial distribution from the operating phase of the
project (the operations distribution).
EIB DISTRIBUTION
The amount of the EIB distribution is $9.0411 per "old" stapled
security. An "old" stapled security is the pre 6 December 1999
security consisting of one share in TCL, one unit in the
Transurban City Link Unit Trust and 499 EIBs.
A record date of 6 December 1999 was declared for the EIB
distribution and the distribution will be paid to security
holders registered on that date.
As the EIB distribution is an interest payment on bonds
certified pursuant to Division 16L of the Income Tax Assessment
Act, it can be treated by recipients in their income tax returns
as exempt income or, alternatively as generally assessable for
tax but eligible for a tax rebate at the rate of 30 per cent.
OPERATIONS DISTRIBUTION
The amount of the operations distribution is 2.25 cents per
"new" stapled security. A "new" stapled security is the
currently-trading security consisting of one share in Transurban
Holdings Limited, one unit in Transurban Holdings Trust and one
share in Transurban Infrastructure Developments Limited.
The record date for this distribution is 13 February 2002 and
the "new" stapled securities will trade ex this distribution
from 7 February 2002.
Transurban Holdings Trust will pay the operations distribution
by way of a return of capital. As a result, the distribution
will have no immediate tax impact on security holders, but each
security holder's cost base for Capital Gains Tax purposes will
be reduced by the amount of the distribution received. This will
increase the amount of the capital gain (or decrease the amount
of the capital loss) realized when the investor disposes of the
securities. Distributions of this nature are typically
categorized as "tax deferred."
DISTRIBUTION OUTLOOK
As previously indicated, the 2.25 cent distribution represents
the initial distribution from the operating phase of the
project. Now that the operating phase is established and the
ramp up of transaction volumes well-advanced, it is the
intention of directors to make regular distribution payments at
approximately six monthly intervals. Distribution amounts will
be established by reference to the cash surplus generated by the
CityLink entities, after allowing for the overhead costs of
Transurban Holdings and Transurban Infrastructure Developments
Limited.
The distribution amount for the six months ended 30 June 2002 is
expected to be in the range 2.25 - 3.5 cents per stapled
security, depending on the timing of the refinancing of the
Group's debt, which is targeted for the second quarter. On the
basis that the refinancing is completed by mid-2002, and given
the ongoing improvement in cash flow from operations,
distributions of around 20 cents per stapled security are
forecast for the 2003 financial year.
UECOMM LIMITED: Incurs $58.6M Net Operating Loss
------------------------------------------------
Directors of Uecomm Limited announced Tuesday, February 5, 2002
that the Company reported a net operating loss before tax of
$58.6 million ($55.2 million after tax) for the year ending 31
December 2001. Revenue from ordinary activities was $33.0
million for the full year.
These results are in line with recent projections provided by
the Company and reflect the difficult trading conditions faced
throughout 2001. Costs associated with one-off restructuring and
significant asset writedowns totaling $40.8 million also
contributed to this result. These were:
* bad debt write-offs and provisions $11.2 million
* writedown of certain network assets and equipment$10.4 million
* writedown of the investment in 'people telecom' $9.0 million
* restructuring costs, including staff redundancies $6.6 million
* costs arising from the UNITE dial-up ISP, which was sold
during 2001:
* Loss on disposal of the UNITE business and
assets $1.9 million
* Write-off of UNITE branding costs $1.7 million.
In addition to the above items, net operating losses relating to
UNITE of $4.5 million were incurred during 2001.
Uecomm has not brought to account the future income tax benefit
relating to tax losses. This treatment is consistent with that
of other listed second tier telecommunications companies and in
accordance with current accounting regulations. This resulted in
an amount of $11.6 million not being brought to account as a
future income tax benefit asset.
STRATEGY & OUTLOOK
The results for 2001 reflect the softening of the Company's
trading environment, the operational issues encountered in early
2001, the subsequent change in Uecomm's strategic direction and
the operational restructuring of the business.
Certain contracts that were being pursued by the Company did not
eventuate and other customers were impacted by the downturn in,
and the capital raising problems of the telecommunications
sector generally, resulting in significant write-offs of bad
debts and provisioning for doubtful debts.
Chief Executive Officer, Peter McGrath said that the strategic
and operational changes implemented by the new management team
should deliver positive results for Uecomm shareholders in 2002.
Operational changes have seen Uecomm's workforce reduced from
230 to approximately 120 today. As a result of reducing staff
numbers and network costs from other telecommunications
carriers, Uecomm is forecasting average cost of services and
operating expenditure of less than $3 million per month for
2002.
Staff reductions have come about by exiting the non-core
businesses of Unite, UE Access and Ue Vialight, by outsourcing
construction and decreasing corporate overheads.
"By taking the hard decisions in 2001, Uecomm is well positioned
to implement its new business plan in 2002. Uecomm will be able
to leverage off its strengths of an extensive and reliable
network coverage, leading edge products and strong service
culture to increase its market penetration. The Company is now
targeting an EBITDA positive position in the first quarter
2002," Mr McGrath said.
Over the past year Uecomm has connected a significant number of
new services. At 31 December 2001 there were 748 customer
services connected. This is a growth of 518 new connections
during 2001 (a 225 percent increase) on the 230 service
connections established at 31 December 2000.
Uecomm has access to an $80 million loan facility from United
Energy, of which $19.7 million was drawn down by 31 December,
2001.
Mr McGrath said, "Uecomm's competitive advantages, combined with
access to funding, puts the Company in a very strong position to
see it through the current difficult trading conditions and to
take advantage of opportunities that arise as the telco sector
rationalizes."
DIVIDENDS
In line with the dividend policy statement contained in the
Prospectus, Directors will not be declaring a dividend in
respect of the year 2001.
KEY FINANCIALS
KEY FINANCIALS
(# EXCLUDING SIGNIFICANT ITEMS)
AS AT DECEMBER 31 2001 $M 2000 $M
Total Revenue 33.0 43.8
EBITDA # (10.1) 19.4
EBIT # (17.5) 17.8
Net Profit before tax # (17.8) 13.8
Net Profit after tax # (14.3) 8.2
Significant Items (after tax) (40.8) (123.7)
Net Profit after tax and significant items(55.2) (115.4)
Capital Expenditure 91.8 55.9
Total Assets 159.4 193.7
Net Debt 19.7 -
Shareholders Equity 118.8 174.3
KEY RATIOS
KEY RATIOS 2001 CENTS 2000
CENTS
Earnings Per share # - 4.52
Net Asset Backing per share 23.5 34.6
CONSOLIDATED PROFIT AND LOSS ACCOUNT
CURRENT PREVIOUS
PERIOD CORRESPONDING
PERIOD
AUD000 AUD000
1.1 Revenues from ordinary activities 33,042 43,843
1.2 Expenses from ordinary activities
(see items 1.24 + 12.5 + 12.6) 91,393 149,724
1.3 Borrowing costs 282 3,977
1.4 Share of net profit (loss) of
associates and joint venture
entities (see item 16.7) - -
1.5 Profit (loss) from ordinary
activities before tax (58,633) (109,858)
1.6 Income tax on ordinary
activities (see note 4) 3,478 (5,568)
1.7 Profit (loss) from ordinary
activities after tax (55,155) (115,426)
1.8 Profit (loss) from extraordinary
items after tax (see item 2.5) - -
1.9 Net profit (loss) (55,155) (115,426)
1.10 Net profit (loss) attributable to
outside equity interests - -
1.11 Net profit (loss) for the period
attributable to members (55,155) (115,426)
CONSOLIDATED RETAINED PROFITS
1.12 Retained profits (accumulated losses)
at the beginning of the financial
period (118,273) 3,500
1.13 Net profit (loss) attributable to
members (item 1.11) (55,155) (115,426)
1.14 Net transfers (to) and from reserves
(share buy back) - (6,347)
1.15 Net effect of changes in accounting
policies - -
1.16 Dividends and other equity distributions
paid or payable - -
1.17 Retained profits (accumulated losses)
at end of financial period (173,428) (118,273)
PROFIT RESTATED TO EXCLUDE AMORTISATION
OF GOODWILL
1.18 Profit (loss) from ordinary activities
after tax before outside equity
interests (items 1.7) and amortization
of goodwill (55,155) (115,426)
1.19 Less (plus) outside equity interests - -
1.20 Profit (loss) from ordinary activities
after tax (before amortization of
goodwill) attributable to members (55,155) (115,426)
PROFIT (LOSS) FROM ORDINARY ACTIVITIES
ATTRIBUTABLE TO MEMBERS
1.21 Profit (loss) from ordinary activities
after tax (item 1.7) (55,155) (115,426)
1.22 Less (plus) outside equity interests - -
1.23 Profit (loss) from ordinary activities
after tax, attributable to members (55,155) (115,426)
REVENUE AND EXPENSES FROM ORDINARY ACTIVITIES
AASB 1004 requires disclosure of specific categories of revenue
and AASB 1018 requires disclosure of expenses from ordinary
activities according to either their nature of function.
Entities must report details of revenue and expenses from
ordinary activities using the layout employed in their accounts.
See also items 12.1 to 12.6
Current Previous
Period Corresponding
Period
AUD000 AUD000
1.24 Details of revenue and expenses
SALES REVENUES
Connection fees 5,739 15,853
Service fees 19,229 24,537
UNITE dial up internet 1,512 1,409
Broadband revenue 4,069 135
Total Sales Revenues 30,549 41,934
OTHER REVENUES
Other Trading Revenue - -
Interest from Associated Entities - -
Interest from Other persons 1,689 1,909
Proceeds on the sale of Property Plant and 32 -
Equipment
Proceeds on the sale of Investment 772
-
Total Other Revenues 2,493 1,909
Total Revenues from Ordinary Activities 33,042 43,843
EXPENSES FROM ORDINARY ACTIVITIES
Direct Costs of Providing Services
Network Services 14,592 6,213
Total Direct Costs of Providing Services 14,592 6,213
OTHER EXPENSES
Employee Benefits 19,934 7,807
Administration 9,118 1,628
Depreciation and Amortization 20,526 8,468
Occupancy 2,497 1,107
Management Fees 350 848
Other Expenses 24,376 123,653
Borrowing Costs 282 3,977
Total Other Expenses 77,083 147,488
Total Expenses from Ordinary Activities 91,675 153,701
INTANGIBLE AND EXTRAORDINARY ITEMS
Consolidated - current period
Before Related Related Amount
tax tax outside (after
equity tax)
interests attributable
to members
AUD000 AUD000 AUD000 AUD000
(a) (b) (c) (d)
2.1 Amortization of
goodwill - - - -
2.2 Amortization of
other intangibles 35 - - 35
2.3 Total amortization
of intangibles 35 - - 35
2.4 Extraordinary items - - - -
(details)
2.5 Total extraordinary
items - - - -
COMPARISON OF HALF YEAR PROFITS Current Previous
(Preliminary final report only) year year
AUD000 AUD000
3.1 Consolidated profit (loss) from
ordinary activities after tax
attributable to members reported
for the 1st half year (item 1.23
in the half yearly report) (18,911) (120,806)
3.2 Consolidated profit (loss)
from ordinary activities after tax
attributable to members for the 2nd
half year (36,244) (5,380)
CONSOLIDATED BALANCE SHEET
At end of As in last As in last
current annual half yearly
period report report
AUD000 AUD000 AUD000
CURRENT ASSETS
4.1 Cash 561 73,866 30,333
4.2 Receivables 7,931 25,868 6,557
4.3 Investments - - -
4.4 Inventories - - -
4.5 Other (provide details
if material) - - 1,264
Other Financial Assets - - 2,283
Accrued Revenue 1,090 11,998 -
Prepayments 389 1,274 -
Deferred Expenses - 671 -
4.6 Total current assets 9,971 113,677 40,437
NON-CURRENT ASSETS
4.7 Receivables 1,633 3,752 1,572
4.8 Investments (equity
accounted) 1,000 - 10,000
4.9 Other investments - - -
4.10 Inventories - - -
4.11 Exploration and evaluation
expenditure capitalized
(see para.71 of AASB 1022) - - -
4.12 Development properties
(mining entities) - - -
4.13 Other property, plant and
equipment (net) 143,918 73,880 124,135
4.14 Intangibles (net) 514 781 712
4.15 Other - Deferred Tax Assets 2,397 503 8,822
- Other - 1,111 -
4.16 Total non-current assets 149,462 80,027 145,241
4.17 Total assets 159,433 193,704 185,678
CURRENT LIABILITIES
4.18 Payables 19,543 15,959 27,149
4.19 Interest bearing
liabilities - - 831
4.20 Provisions 1,405 836 2,437
4.21 Other - Tax Liabilities - 2,243 -
4.22 Total current liabilities 20,948 19,038 30,417
NON-CURRENT LIABILITIES
4.23 Payables - - -
4.24 Interest bearing
liabilities 19,700 - -
4.25 Provisions - - -
4.26 Other Deferred Tax
Liabilities - 396 382
4.27 Total non-current
liabilities 19,700 396 382
4.28 TOTAL LIABILITIES 40,648 19,434 30,799
4.29 NET ASSETS 118,785 174,270 154,879
EQUITY
4.30 Capital/contributed equity 292,213 292,543 292,063
4.31 Reserves - - -
4.32 Retained profits
(accumulated losses) (173,428) (118,273) (137,184)
4.33 Equity attributable to
members of the parent
entity 118,785 174,270 154,879
4.34 Outside equity interests in
controlled entities - - -
4.35 Total equity 118,785 174,270 154,879
4.36 Preference capital included
as part of 4.33 - - -
EXPLORATION AND EVALUATION EXPENDITURE CAPITALISED
To be completed only by entities with mining interests if
amounts are material. Include all expenditure incurred
regardless of whether written off directly against profit.
Current Previous
period corresponding
period
AUD000 AUD000
5.1 Opening balance N/A N/A
5.2 Expenditure incurred
during current period - -
5.3 Expenditure written off
during current period - -
5.4 Acquisitions, disposals,
revaluation increments, etc. - -
5.5 Expenditure transferred to
Development Properties - -
5.6 Closing balance as shown in
the consolidated balance sheet
(item 4.11) - -
DEVELOPMENT PROPERTIES
(To be completed only by entities with mining interests if
amounts are material)
Current Previous
period corresponding
period
AUD000 AUD000
6.1 Opening balance N/A N/A
6.2 Expenditure incurred
during current period - -
6.3 Expenditure transferred from
exploration and evaluation - -
6.4 Expenditure written off
during current period - -
6.5 Acquisitions, disposals,
revaluation increments, etc. - -
6.6 Expenditure transferred to
mine properties - -
6.7 Closing balance as shown in
the consolidated balance sheet
(item 4.12) - -
CONSOLIDATED STATEMENT OF CASH FLOWS
Current Previous
period corresponding
period
AUD000 AUD000
CASH FLOWS RELATED TO OPERATING ACTIVITIES
7.1 Receipts from customers 47,220 15,581
7.2 Payments to suppliers and
employees (45,246) (16,411)
7.3 Dividends received from
associates - -
7.4 Other - (690)
7.5 Interest and other items
of similar nature received 2,620 962
7.6 Interest and other costs of
finance paid (14) (3,977)
7.7 Income taxes paid (2,424) (5,398)
7.8 GST Settlements 7,397 (927)
7.9 Net operating cash flows 9,553 (10,860)
CASH FLOWS RELATED TO INVESTING ACTIVITIES
7.10 Payment for purchases of property,
plant and equipment (93,362) (59,903)
7.11 Proceeds from sale of property, plant
and equipment 32 -
7.12 Payment for purchases of equity
investments (10,000) -
7.13 Proceeds from sale of business 772 -
7.14 Loans to other entities - -
7.15 Loans repaid by other entities - -
7.16 Other
Payments for intangible assets - (781)
7.17 Net investing cash flows (102,558) (60,684)
CASH FLOWS RELATED TO FINANCING ACTIVITIES
7.18 Proceeds from issues of securities
(shares, options, etc.) - 315,040
7.19 Proceeds from borrowings 19,700 212,583
7.20 Repayment of borrowings - (225,966)
7.21 Dividends paid - -
7.22 Other
Cost of share issue - (26,249)
Cost of share buy back - (130,000)
7.23 Net Financing Cash Flows 19,700 145,408
7.24 NET INCREASE (DECREASE) IN CASH HELD 73,305) 73,864
7.25 Cash at beginning of period 73,866 2
(see Reconciliation of cash)
7.26 Exchange rate adjustments to item
7.25 - -
7.27 Cash at end of period
(see Reconciliation of cash) 561 73,866
NON-CASH FINANCING AND INVESTING ACTIVITIES
Details of financing and investing transactions which have had a
material effect on consolidated assets and liabilities but did
not involve cash flows are as follows. If an amount is
quantified, show comparative amount.
Uecomm Limited issued 1,266,800 shares pursuant to its Share
Acquisition Loan Plan at a value of $149,989. These issues did
not result in cash flows.
RECONCILIATION OF CASH
Reconciliation of cash at the end of Current Previous
the period (as shown in the consolidated period corresponding
statement of cash flows) to the related
period
items in the accounts are as follows. AUD000 AUD000
8.1 Cash on hand and at bank 561 806
2 Deposits at call - 73,060
8.3 Bank overdraft - -
8.4 Other (provide details) - -
8.5 Total cash at end of
period (item 7.27) 561 73,866
RATIOS Current Previous
period corresponding
period
PROFIT BEFORE TAX / REVENUE
9.1 Consolidated profit (loss) from
ordinary activities before tax
(item 1.5) as a percentage of
revenue (item 1.1) (177.45) % (250.57) %
PROFIT AFTER TAX / EQUITY INTERESTS
9.2 Consolidated net profit (loss) from
ordinary activities after tax
attributable to members (item 1.9)
as a percentage of equity (similarly
attributable) at the end of the
period (item 4.33) (46.43) % (66.23) %
EARNINGS PER SECURITY (EPS) Current Previous
period corresponding
period
10.1 Calculation of the following
in accordance with AASB 1027:
Earnings per Share
(a) Basic EPS (10.90) c (63.30) c
(b) Diluted EPS (if materially - c - c
different from (a))
(c) Weighted average number of
ordinary shares outstanding
during the period used in
the calculation of the
Basic EPS 504,118,420 182,431,363
NTA BACKING Current Previous
(see note 7) period corresponding
period
11.1 Net tangible asset backing
per ordinary security 0.23 0.34
Net asset backing (including tangibles
assets) per security; 0.24 0.35
For further information contact:
Investors, Institutions, Analysts and Media:
Marta Wakeling
INVESTOR RELATIONS MANAGER
Phone: (03) 9941 4521
Mobile: 0404 837 649
E-Mail: mwakeling@uecomm.com.au
================================
C H I N A & H O N G K O N G
================================
CHINA HERO: Faces Winding Up Petition
-------------------------------------
The petition to wind up China Hero Land Limited is set for
hearing before the High Court of Hong Kong on March 27, 2002 at
9:30 am. The petition was filed with the court on January 4,
2002 by Bank of China (Hong Kong) Limited whose registered
office is situated at 14th Floor, Bank of China Tower, 1 Garden
Road, Hong Kong.
LONG CAIN: Winding Up Petition To Be Heard
------------------------------------------
The petition to wind up Long Cain Development Limited is
scheduled for hearing before the High Court of Hong Kong on
Wednesday, February 6, 2002 at 10:00 am.
The petition was filed with the court on December 5, 2001 by
Bank of China (Hong Kong) Limited whose registered office is
situated at 14th Floor, Bank of China Tower, 1 Garden Road, Hong
Kong.
NORTHEAST ELECTRIC: Requests Suspension of Trading
--------------------------------------------------
Northeast Electrical Transmission & Transformation Machinery
Manufacturing Company Limited (the Company) requested trading in
its H shares has been suspended with effect from 10:00 a.m.
Tuesday 5 February,2002 pending the release of an announcement
to clarify price sensitive information on the Company.
SEAPOWER RESOURCES: Petition To Wind Up Pending
-----------------------------------------------
The petition to wind up Seapower Resources International Limited
is scheduled for hearing before the High Court of Hong Kong on
February 20, 2002 at 9:30 am.
The petition was filed with the court on December 11, 20001 by
Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. located at
42-43/F., Two Exchange Square, 8 Connaught Place, Central, Hong
Kong.
SINO ACT: Winding Up Petition Set For Hearing
---------------------------------------------
The petition to wind up Sino Act Development 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 14, 2001 by Lo Hing Kwong (1995) & Company
Limited whose registered office is situated at Room 1304,
Paramount Building, 12 Ka Yip Street, Chai Wan, Hong Kong.
YIU FAI: Winding Up Petition Slated For Hearing
-----------------------------------------------
The petition to wind up Yiu Fai Warehousing Limited is set for
hearing before the High Court of Hong Kong on February 20, 2002
at 9:30 am.
The petition was filed with the court on the 11th day of
December 2001 present to the said Court by Cooperative Central
Raiffeisen-Boerenleenbank B.A. located at 42-43/F., Two Exchange
Square, 8 Connaught Place, Central, Hong Kong.
YIU FUNG: Winding Up Petition Hearing Set
-----------------------------------------
The petition to wind up Yiu Fung Cold Storage & Warehousing
Limited will be heard before the High Court of Hong Kong on
February 20, 2002 at 9:30 am. The petition was filed with the
court on December 11, 2001 by Cooperatieve Centrale Raiffeisen-
Boerenleenbank B.A. located at 42-43/F., Two Exchange Square, 8
Connaught Place, Central, Hong Kong.
=================
I N D O N E S I A
=================
BARITO PACIFIC: Suspended After Bankruptcy Petition Report
----------------------------------------------------------
The Jakarta Stock Exchange has suspended trading in PT Barito
Pacific Timber shares pending clarification of a reported
bankruptcy petition, AFX Asia reported Tuesday.
In the Court documents, Bank Niaga has filed a bankruptcy
petition against Barito at the Jakarta Commercial Court due to
its failure to repay Rp462.887 billion debts.
Bank Niaga is the acting trustee of Barito Pacific' bondholders.
SEMEN GRESIK: February 26 EGM Scheduled
---------------------------------------
State cement company PT Semen Gresik is set to hold its
extraordinary shareholders meeting (EGM) on Feb. 26, with the
main agenda to reshuffle its current Boards of Directors and
commissioners, Jakarta Post reports.
The massive protests against the government plan to sell off a
the 51 percent stake to Mexico's Cemex SA de CV triggers the
reshuffle of Gresik's top management.
State Minister of State Enterprises Laksamana Sukardi demanded
an immediate extraordinary shareholders meeting to replace Semen
Gresik's top management and appoint an independent board of
commissioners, referring to Sukardi's letter to Semen Gresik on
January 21.
Neither Semen Gresik nor Cemex officials were available for
comment.
=========
J A P A N
=========
KOTOBUKIYA CO: Aeon Prepares For Food Outlet Acquisition
--------------------------------------------------------
Aeon Co is set to acquire 30 of food supermarket outlets of
Kotobukiya Co, which recently filed for court protection from
creditors under the Civil Rehabilitation Law, AFX News and Nihon
Keizai Shimbun reported Sunday. Aeon runs 26 supermarket outlets
in northern Kyushu through subsidiary Kyushu Jusco.
All 134 Kotobukiya stores have been forced to temporarily close,
as product supplies have stopped. Both companies are expected to
conclude the deal by Friday. Kotobukiya has total liabilities of
Y300 billion.
NEC CORPORATION: Moody's Downgrades Debt Rating to Baa2
-------------------------------------------------------
Moody's Investors Service on February 4, 2002 has downgraded to
Baa2 from Baa1 the issuer and senior unsecured debt ratings of
NEC Corporation (NEC), NEC Industries (UK) Plc and NEC Capital,
Inc. The rating outlook is stable.
Moody's says the rating action reflects NEC's weakened
profitability. The Baa2 rating also considers NEC's high
leverage. The rating action concludes the review initiated on
October 4, 2001.The prime-2 short term rating for CP was not
included in the review. The rating for the Y100bn subordinated
security (trust preferred security) issued by a trust wholly
owned by NEC was also downgraded to Baa3 from Baa2. The rating
outlook is stable.
Meanwhile, the stable outlook reflects the rating agency's
expectation that NEC will be able to stabilize and improve
profitability by further enhancing its soft/solution providing
businesses, as well as equipment for telecommunication
infrastructure, while restructuring its DRAM division.
NEC Corporation, headquartered in Tokyo, is the 3rd largest
integrated electronics company in Japan.
According to Dow Jones on Monday NEC doubled its previous loss
forecast for the full year ending in March to Y300 billion. The
company expects its first-ever group operating loss for the full
fiscal year. The company said it would lose Y57 billion during
the period, reversing its previous forecast for a profit of Y30
billion.
NEC CORPORATION: US Affiliate Signs Agreement With ALLTEL
---------------------------------------------------------
NEC America, Inc. (Nasdaq:NIPNY) announced that ALLTEL has
agreed to distribute NEC key telephone system ( KTS) products
throughout its national network.
Headquartered in Little Rock, Ark., ALLTEL is a leading national
telecommunications provider, reaching some 10 million customers
by offering local telephone, wireless, long-distance, paging and
Internet services in 24 states. ALLTEL serves some 6.6 million
wireless customers, and 2.6 million local telephone customers,
ranking sixth in each category. As part of this agreement,
ALLTEL will make NEC key products available to its customers in
all markets.
"We are very enthused about our partnership with ALLTEL,"
explained Shuichi Hashimoto, vice president and general manager
of NEC America's Corporate Networks Group. "They are an
aggressive company, and, like NEC, they are extremely focused on
delivering service and value to the customer."
Designed specifically for the small to medium business
environment, NEC key products are known within the industry for
their reliability and scalability. Product lines, including
Electra Elite(R) and InfoSet(TM), offer users robust feature
sets, including built-in management systems to control
expenditures. NEC key products are also designed to incorporate
new features when they become available through easy software
upgrades.
Editors Note: For additional information on NEC's Corporate
Networks Group and its products, please consult the World Wide
Web at http://www.cng.nec.com.
About NEC America Inc.
NEC America, Inc., an affiliate of NEC Corporation
(Nasdaq:NIPNY), develops, manufactures, and markets a complete
line of advanced communications products and software for public
and private networks, including digital key telephone and PBX
systems; wireless communications; ATM switching systems;
facsimile equipment; fiber optic transmission systems; data
communications products; digital microwave radio, satellite
communications and network management systems. NEC Corporation,
with its affiliates worldwide, is a $43 billion global leader
whose 150,000 employees are dedicated to providing leading-edge
computer, communications and semiconductor products and
services. For more information about NEC America, visit
www.necamerica.com.
According to Dow Jones, NEC (NIPNY) revealed a group net loss of
Y155.07 billion in the October-to- December quarter, as sales
tumbled 9.5 percent to Y1.125 trillion. The loss was a reversal
of the Y8.31 billion in profit that the company reported in the
same period in 2001.
CONTACT: NEC America, Inc., Irving
Steve Kopel, 214/262-2411
skopel@necam.com
or
Scott Cooper Associates
Glenn Goldberg, 631/249-9700
glenn@scottcooper.com
SPORTS SHINKO: Obtains Affiliates' Legal Protection
---------------------------------------------------
Osaka-based company Sports Shinko Group has filed for legal
protection of its 17 affiliates under a corporate rehabilitation
law, and received court approval for its own protection on
Monday, Kyodo News reported on February 5. The golf-course
management firm manages links at more than 30 locations in and
outside Japan with 60,000 total members. The firm is saddled
with Y296.5 billion in liabilities.
SNOW BRAND: Splits Food Company Four Ways
-----------------------------------------
Snow Brand Food will be divided into four companies, including
one specializing in the ham and sausage business, due to a meat-
labeling scandal, according to AP Online and Nihon Keizai on
Monday. Company officials stressed that the firm won't be able
to survive related to a loss of confidence by consumers toward
meat. The firm has notified 1,000 part time employees that they
will be fired by March 10.
A Company spokeswoman Kazu Tagushi said Snow Brand Milk Products
Co. President Kohei Nishi would announce its group wide
restructuring plans later Tuesday. The Company is accused of
sticking made-in-Japan labels on Australian beef to profit from
a government scheme to buy domestic meat feared contaminated
with made cow disease. Last week the company's President Shozo
Yoshida resigned because of the scandal.
TOSHIBA CORP: Moody's Lowers Rating To Baa1; Outlook Negative
-------------------------------------------------------------
Moody's Investors Service has downgraded to Baa1 from A3 the
senior unsecured debt ratings of Toshiba Corporation (Toshiba),
Toshiba International Finance (Netherlands) B.V., Toshiba
Capital (Asia) Ltd., Toshiba America Capital Corporation and
Toshiba Carrier Corporation. The rating outlook is negative.
The rating action concludes the review initiated on October 30,
2001. The prime-2 short term rating for CP was not included in
the review. Moody's says the rating action reflects Toshiba's
weakened profitability.
The current steep downturn of the global IT market and a delay
of restructuring of its DRAM (dynamic random access memory)
division severely affect Toshiba's profitability. A weakened
profitability of its notebook PCs was another factor for the
decline.
Toshiba will be able to manage its profitability to some extent
because it will withdraw from standard type DRAM, which has
substantial price volatility. However, the negative rating
outlook reflects the rating agency's concern that Toshiba lacks
competitive products as profitable as its DRAM and notebook PCs
in the past.
Toshiba Corporation, the 2nd largest integrated electronics
company in Japan, is headquartered in Tokyo.
Dow Jones said on Monday that Toshiba in the three months to
December 31 had a loss of Y84.9 billion ($636 million) versus a
net income of Y11.1 billion in the year-earlier period.
Consolidated sales fell 14 percent to Y1.2 trillion from Y1.39
trillion.
WORLD WING: Files for Bankruptcy Protection
-------------------------------------------
Tokyo-based travel agency World Wing Tours Co on Monday applied
to the Tokyo District Court for bankruptcy protection under the
fast-track corporate rehabilitation law with obligations
totaling Y1 billion, Kyodo News reports. The Company became the
latest casualty in the wake of the September 11, 2001 terrorist
attacks in New York and Washington.
=========
K O R E A
=========
HYNIX SEMICONDUCTOR: CEO to Resume Micron Tie-Up Negotiations
-------------------------------------------------------------
Hynix Semiconductor Inc's Chief Executive, Park Chong-sup, left
for the United States on Saturday to hold discussions with
Micron regarding a possible alliance, Reuters said Tuesday,
citing company spokeswoman, Kang In-young.
Creditors who rescued Hynix twice in 2001 said they want $5
billion for Hynix's memory operations and a slice of its non-
memory business, while saying Micron has offered less than $4
billion. The two sides started negotiations in December.
Meanwhile, Infineon Technologies AG said that it is in talks
with Hynix Semiconductor Inc concerning a possible tie-up
involving memory chips, but refused to say whether it has made
an offer, according to AFX News on Monday. A company spokesman
has declined to comment on whether talks with Hynix had
progressed to a more concrete basis.
HYUNDAI GROUP: Govt Gives Financial Units Sale to Expert
---------------------------------------------------------
The government is planning to form a delegation led by an expert
from the private sector to engage in a deal with foreign
enterprises to sell off three Hyundai Group financial firms
namely Hyundai Investment Trust and Securities Co., Hyundai
Securities Co. and Hyundai Investment Trust Management Co, the
Korea Herald said Tuesday, citing an official at the Financial
Supervisory Commission.
A consortium led by the U.S. investment fund W.L. Ross, the
Prudential Financial Group and a U.S. financial firm has
expressed an interest in gaining control of the firms.
The government was forced to acquire stakes in the three
troubled companies due to the 1997 economic crisis.
SSANGYONG CORPORATION: Creditors Delay Debt Rescheduling
--------------------------------------------------------
Creditors of Ssangyong Corp. will postpone their decision on
debt rescheduling for the firm until February 8, after the lunar
New Year Day, which falls on February 12, Korea Herald reported
Tuesday. The creditors will first form a council to discuss the
planned debt-for-equity swap, capital reduction and interest
cuts. A due diligence examination of Ssangyong showed the
company's worth as a growing concern, which was estimated at
W430 billion, much greater than its liquidation value of W220
billion.
===============
M A L A Y S I A
===============
CHASE PERDANA: Awaits FI Lenders' Workout Scheme Response
---------------------------------------------------------
Chase Perdana Berhad (the Company) is still awaiting for a
decision from some of the Financial Institution (FI) lenders
following to the meeting on 13 December 2001. As to-date,
the majority of FI lenders who had responded to the Corporate
Debt Restructuring Committee and the Company advisor, Southern
Investment Bank Berhad (SIBB) have indicated their support to
the Company Proposed Debt Restructuring Scheme.
Upon signing and execution of an agreement with FI lenders, the
Company, via SIBB will make the Requisite Announcement as
required under Paragraph 5.1 (a) of PN 4.
The Company also provided a status report on its default in the
repayment of both the principal and interest of all credit
facilities granted by Financial Institutions detailed in the
table set at http://www.bankrupt.com/misc/TCRAP_Chase0205.xls
An update on the progress of the Company's Proposed Debt
Restructuring Scheme is made separately in another announcement
pursuant to Paragraph 4.1 (b) of Practice Note No. 4/2001 on
even date.
HOTLINE FURNITURE: Proposed Acquisition Exercise Terminated
-----------------------------------------------------------
The Board of Directors of Hotline Furniture Berhad (Hotline)
announced that the corporate exercise approved by the Securities
Commission on 1 August 2000 involving the Proposed Acquisition
of Macro System Consultancy Sdn Bhd group of companies was
terminated on 31 January 2002 and the Proposed Rights Issue has
been aborted.
Hotline will announce a new restructuring proposal in due course
as to comply with the Practice Note 4/2001 of the KLSE Listing
Requirements.
L&M CORPORATION: Books RM190M Jan Defaulted Interest Payment
------------------------------------------------------------
The Board of Directors of L & M Corporation (M) Bhd (L&M)
updated on the default in payments by the L&M Group. As at 31
January 2002, the total default payments to financial
institutions in respect of various credit facilities by L&M
Group is RM190,130,994-84.
L&M has applied to the Exchange for extension of time from
obtaining approvals from the Securities Commission and The
Ministry of International Trade and Industry for the proposed
regularization of the financial condition of L&M till 30 March
2002.
The Board of Directors of L & M Corporation (M) Bhd also
announced that there is no further development since the
previous announcement on the result of the submission of plan in
regularizing its financial conditions.
In view of the Company had yet to obtain the approvals from
Securities Commission and Ministry of International Trade and
Industry within four (4) months from the date of submission,
i.e. 3 September 2001, according to the paragraph 5.1(c) of the
Practice Note 4/2001 of the KLSE Listing Requirements, then, the
Company had applied for an extension of time till 30 March 2002
from the Exchange for obtaining the approvals from the said two
authorities. Such application is pending the approval from the
Exchange.
MAY PLASTICS: Signs MBO Agreement With Quintanilla
--------------------------------------------------
The Board of Directors of May Plastics Industries Bhd (the
Company) announced that an agreement was signed on 7 January
2002 between the Company and Quintanilla Sdn Bhd in relation to
the proposed management buy-out (MBO Agreement), which is an
integral part of the proposed rescue cum restructuring scheme
comprising composite schemes of arrangement pursuant to section
176 of the companies act 1965 and various related proposals (the
Proposals). The Company announced to the Kuala Lumpur Stock
Exchange the salient terms and conditions of the MBO Agreement
on 9 January 2002.
Other than this, there has been no change in the status of the
proposals as announced on 2 January 2002.
Prior to the listing of and quotation for the entire issued and
paid up share capital of KSUH on the Second Board of the KLSE,
the Company/KSUH will implement a non-renounceable offer for
sale of the rights to allotment of 33,701,033 new KSUH shares
(which represent a portion of the new KSUH shares to be issued
to certain vendors pursuant to the EEDB/KAB Acquisitions) to the
entitled shareholders of KSUH (being the MPI shareholders who
received their respective KSUH shares pursuant to the Shares
Exchange) at an offer price of RM2.00 per share on the basis of
five (5) KSUH shares for every two (2) KSUH shares held after
the Shares Exchange.
The Company will make further appropriate announcements from
time to time.
MBF CAPITAL: Provides Winding Up Petition Add'l Info
----------------------------------------------------
MBf Capital Berhad (MBfC), in reference to Kuala Lumpur Stock
Exchange's letter dated 4 February 2002 on the notice of
winding-up petition served by Southern Investment Bank Berhad
(SIBB) on MBfC, provided this information as requested by the
Exchange for public release:
1) The date of the presentation of the winding-up petition
was 1 December 2000 and the date the winding-up petition was
served on MBfC was 23 May 2001;
2) The particulars of the claim including amount claimed for
under the petition was RM5,739,201.70 and the interest rate was
7.95 percent as at end January 2002;
3) For year 2000 until todate, the current interests have not
been serviced. This was to be in line with MBf Leasing Sdn Bhd's
(MBfL) proposed debt restructuring scheme (Scheme), which has
been proposed to the creditors. If the Scheme is approved, the
Lenders will waive the interests from 1January 2000 until the
commencement of the Scheme;
4) The management of MBfC does not foresee any immediate
financial or operational impact on the Group. The winding up
petition is fixed for hearing on 4 April 2002. It would be
rendered academic in view of the Section 176 Scheme of
Arrangement to restructure the debts of MBfC, to which
application to the Kuala Lumpur High Court to obtain an order to
convene Scheme Creditors Meetings have been made. The management
and its advisors envisage the Scheme Meetings to take place
within the next 2 months.
5) MBfC do not foresee any additional losses as the interests
have been fully provided. However, the impact cannot be
ascertained at this juncture.
6) MBfC has taken the necessary steps by meeting SIBB to
discuss on the above matter and is endeavoring to settle the
matter with SIBB.
MBfC would like to highlight that the above sum of
RM5,739,201.70 is principally a guaranteed debts for credit
facilities taken by MBfL, a wholly owned subsidiary of MBfC,
which currently has obtained a Restraining Order from the High
Court of Malaya at Kuala Lumpur.
Meanwhile, as announced earlier, MBfC informed that it has
engaged a financial advisor to formulate a Scheme of Compromise
to restructure the debts of MBfC and its relevant group of
companies, which shall include MBfL.
Alliance Merchant Bank Berhad, on behalf of MBf Capital, had on
16 January 2002, announced that due to certain variations
proposed by the creditors to be made to MBf Capital's proposed
debt restructuring scheme, the court-convened meetings for MBf
Capital, MBf Leasing Sdn Bhd (MBf Leasing) and MBf Factors Sdn
Bhd (MBf Factors) have been postponed to a later date.
MBf Capital is currently finalizing the variations to the
proposed debt restructuring scheme and the supplemental
explanatory statements of MBf Capital and MBf Leasing/MBf
Factors detailing the variations will be dispatched to the
creditors of the MBf Capital Group in due course.
The dates of the postponed court-convened meetings for the
purposes of putting the proposed debt restructuring scheme to a
vote shall be announced in due course.
MBF HOLDINGS: In the Midst of Finalizing Proposed SOA
-----------------------------------------------------
Alliance Merchant Bank Berhad (Alliance), for and on behalf of
the Board of Directors of MBf Holdings Berhad (MBf-H or
Company), announced that the Company is in the midst of
finalizing the legal documentation for execution by MBf-H and
the parties involved in the Proposed Schemes of Arrangement
(Proposed SOA). Alliance has, via a series of announcements
released to the Kuala Lumpur Stock Exchange (KLSE) in January
2002, announced that it has obtained the approvals for the
Proposed SOA from the Securities Commission and Bank Negara
Malaysia.
Alliance, on behalf of the Board of Directors of MBf-H, will be
submitting an application to the KLSE for the listing of and
quotation for the new MBf-H shares and warrants to be issued
pursuant to the Proposed SOA, in due course.
Save for the above, there is no further development on the
status of MBf-H's plan to regularize its financial condition
pursuant to Practice Note No. 4/2001 issued by the Kuala Lumpur
Stock Exchange, subsequent to the Company's announcement dated 2
January 2002.
PLANTATION & DEVELOPMENT: Proposed Scheme Aborted
-------------------------------------------------
Arab-Malaysian Merchant Bank Berhad (Arab-Malaysian), on behalf
of Plantation & Development (Malaysia) Berhad (P&D or the
Company), announced that the vendors of the plantation companies
have through Mayvin Consolidated Berhad (MCB), the new holding
company to assume the listing status of P&D pursuant to the
proposed debt and equity restructuring scheme (Proposed Scheme)
has informed P&D via its letter dated 1 February 2002 that it
has decided not to pursue the Proposed Scheme based on the
revised terms and conditions as set by the Securities Commission
(SC). Therefore, the Proposed Scheme has been aborted.
P&D is presently negotiating with a few potential parties to
devise a plan to regularize its financial position.
An application to the Kuala Lumpur Stock Exchange will be made
in due course to seek an extension of time for the Company to
finalize another plan to regularize its financial condition.
SASHIP HOLDINGS: BNM Bank Regulation Dept Allows RCLS Addition
--------------------------------------------------------------
The Board of Directors of Saship Holdings Berhad (SHB or the
Company), formerly known as Westmont Industries Berhad, informed
that the Bank Regulation Department of Bank Negara Malaysia
(BNM) on 18 January 2002 had acknowledged the RM207,130,000
Redeemable Convertible Loan Stock (RCLS) to be issued instead of
RM197,312,000, which has previously been approved on 15 March
2001. The Exchange Control Department of BNM also given their
approval on the issuance of the additional RCLS vide their
letter dated 23 January 2002.
The filing of petition to the High Court for sanction of the
Restructuring Scheme is in progress.
SPORTMA CORPORATION: Gets SC's Nod on Proposal
----------------------------------------------
The Special Administrators (SA) of Sportma Corporation Berhad
(Sportma) announced that the Securities Commission has vide its
letter dated 31 January 2002 approved the Proposed Corporate and
Debt Restructuring Scheme of Sportma (Proposal). Details of the
said SC's approval will be announced to the Exchange in due
course for public release.
The Proposal is still pending these approvals, to be obtained
from the relevant authorities:
(i) The SC for the issue of private debt securities, namely the
Proposed Issue of Redeemable Convertible Secured Loan Stocks
(RCSLS) and
(ii) The Ministry of International Trade and Industry for the
extension of time to comply with the bumiputra equity
participation.
SRI HARTAMAS: Proposes Scheme of Arrangement
--------------------------------------------
The Special Administrators (SA) of Sri Hartamas Berhad (the
Company) announced that pursuant to Paragraph 8.16 of the
Listing Requirements, the Company is an "affected listed issuer"
as:
1. The Company has inadequate level of operations.
2. The Company undertakes to comply with its obligations as set
out in the Practice Note as follows:
a) The Company must within nine (9) months from the date of
the Initial Announcement make an announcement to the Exchange of
a detailed proposal, the implementation of which will enable the
Company to ensure a level of operations that is adequate to
warrant continued trading and/or listing on the Official List
(Requisite Announcement);
b) Once the Company has announced a detailed proposal to
ensure an adequate level of operations, the Company must submit
the same to the relevant authorities for approval within two
months from the date of the Requisite Announcement or the date
of the Initial Announcement (where the detailed proposal was
made on or before the effective date of this Practice Note); and
c) The Company must obtain all approvals necessary for the
implementation of such detailed proposal within four (4) months
from the date of submission of such detailed proposal to the
relevant authorities for approval.
3. If the Company fails to revert to a level of operations that
warrants the continued trading and listing within the timeframe
stipulated by the Exchange, it may be de-listed by the Exchange.
4. The Company is also an affected listed issuer under Practice
Note No. 4/2001 whereby it is required to regularize its
financial condition. The Company had on 24 May 2001 and
subsequently on 2 October 2001, via Commerce International
Merchant Bankers Berhad, announced the details of the Proposed
Scheme of Arrangement of SHB, the implementation of which, shall
enable the Company to regularize its financial position and
level of operations. The Proposed Scheme of Arrangement of SHB
has been submitted to the Securities Commission for approval on
29 September 2001. The Securities Commission is still reviewing
the proposals.
5. In view that the Company had announced the details of the
Proposed Scheme of Arrangement of SHB pursuant to Practice Note
No. 4/2001, the Company would not be announcing any plan
pursuant to Practice Note No. 10/2001 and that the announcements
made pursuant to Practice Note No. 4/2001 shall prevail.
Further to the Company's application of the Proposed Scheme of
Arrangement of SHB to the Securities Commission on 29 September
2001, the Special Administrators of SHB informed that the
Securities Commission is still reviewing the proposals. As
announced to the Exchange on 31 January 2002, the Special
Administrators have accordingly applied to the Exchange to
extend the deadline to obtain the relevant authorities' approval
on its plan to regularize its financial condition for three (3)
months from 29 January 2002 to 29 April 2002.
SRIWANI HOLDINGS: Updates Financial Regularization Status
---------------------------------------------------------
Commerce International Merchant Bankers Berhad (CIMB) on behalf
of Sriwani Holdings Berhad (SHB or Company), announced that the
following events have taken place since the last announcement on
2 January 2002 pertaining to SHB 's plan to regularize its
financial condition:
(i) On 11 January 2002, the Corporate Debt Restructuring
Committee (CDRC) accepted the application by SHB to be admitted
for debt restructuring under the purview of the CDRC;
(ii) On 17 January 2002, CIMB on behalf of SHB, applied to
the KLSE for an extension of time of four (4) months from 22
January 2002 to submit the application for its plan to
regularize its financial condition to the relevant authorities;
and
(iii) On 30 January 2002, SHB, its major shareholder, Saga
Menang Sdn. Bhd. and the financial institution lenders under the
proposed debt restructuring scheme (Proposed Scheme) entered
into a Standstill Agreement in order to facilitate the
preparation of the Proposed Scheme and thereafter, subject to
the requisite approvals being obtained, the implementation of
the Proposed Scheme.
TECHNO ASIA: SAs Finalizing Workout Proposal
--------------------------------------------
Mr. Lim Tian Huat and Mr. Chew Cheng Leong of Messrs. Arthur
Andersen & Co. were appointed Special Administrators over Techno
Asia Holdings Berhad (TECASIA) and a subsidiary company, Prima
Moulds Manufacturing Sdn. Bhd. on 2 February, 2001. The Special
Administrators (SAs) were subsequently appointed over the
following subsidiary companies of TECASIA on 30 April, 2001:
1. Mount Austin Properties Sdn. Bhd.;
2. Cempaka Sepakat Sdn. Bhd.;
3. Ganda Edible Oils Sdn. Bhd.;
4. Litang Plantations Sdn. Bhd.;
5. Wisma Dindings Sdn. Bhd.;
6. Ganda Plantations (Perak) Sdn. Bhd.; and
7. Techno Asia Venture Capital Sdn. Bhd. (collectively known
as the "Affected Companies")
Pursuant to the announcement dated 3 January, 2002 in respect of
Practice Note 1/2001, TECASIA wishes to announce that the
Company and its subsidiaries, namely Mount Austin Properties
Sdn. Bhd. (Special Administrators Appointed), Prima Moulds
Manufacturing Sdn. Bhd. (Special Administrators Appointed),
Prima Moulds Sdn. Bhd. and Ganda Energy Holdings, Inc. had
continued to default in payments of its loan interest and
principal sum owing to several financial institutions. The
outstanding amounts as at 31 December, 2001 are:
Loan and Hire-Purchase Total
(RM)
Principal (RM) Interest (RM)
TECASIA 463,153,369 232,547,779 695,701,148
Group 559,547,592 271,008,824 830,556,416
2. Measures Taken to Address the Default
TECASIA is considered as an "affected listed issuer" pursuant to
PN4/2001.
Further to the measures undertaken as announced on 3 January,
2002, the SAs advise that the workout proposals of the Affected
Companies have been approved save for the workout proposals of
Wisma Dindings Sdn. Bhd. (Special Administrators Appointed) and
TECASIA. The SAs are currently in the process of finalizing
these workout proposals. As the lenders in TECASIA are secured
against assets provided by the subsidiary companies and TECASIA
had provided corporate guarantees to several of its
subsidiaries' creditors, the Requisite Announcement can only be
released when approvals from Danaharta and the respective
secured creditors for all SAs Appointed companies including
TECASIA, have been received.
3. Implications in respect of the Default in Payments
TECASIA wishes to announce that Pengurusan Danaharta Nasional
Berhad has on 30 January, 2002 granted an extension of twelve
(12) months to the moratorium previously in effect for TECASIA
and Prima Moulds Manufacturing Sdn. Bhd. (Special Administrators
Appointed) pursuant to Section 41(3). The said extension shall
expire on 1 February, 2003. The moratorium for the other
affected subsidiaries continues to be in effect. All legal
actions initiated against TECASIA and other affected
subsidiaries will be stayed and any petition for winding-up, or
any appointment of a receiver, receiver and manager or
provisional liquidator cannot proceed.
Arab-Malaysian Merchant Bank Berhad (Arab-Malaysian), on behalf
of TECASIA, announced that there had been no major changes to
the status of TAHB's plan to regularize its financial position,
save for Pengurusan Danaharta Nasional Bhd's (Danaharta)
approval for TAHB's workout proposal, which had been obtained on
28 January 2002. The workout proposals of TAHB and its
subsidiary company, Wisma Dindings Sdn Bhd are now pending the
approval from the secured creditors in a secured creditors
meeting scheduled to be convened soon.
Upon obtaining the approval of the secured creditors for the
workout proposals for TAHB and WDSB, Arab-Malaysian will then,
on behalf of the Company, announce the Requisite Announcement to
the KLSE.
=====================
P H I L I P P I N E S
=====================
BAYAN TELECOMMUNICATIONS: Extelcom Seeking Merger With Unit
-----------------------------------------------------------
Express Telecommunications Co Inc (Extelcom) is seeking a merger
with Benpres Holdings Corp, a subsidiary Bayan
Telecommunications Inc (BayanTel), AFX News reported on Tuesday.
Extelcom has offered to withdraw its opposition to BayanTel's
planned foray into mobile services if it merges with BayanTel.
The Supreme Court has permitted BayanTel to engage in mobile
phone services, which had been opposed by Extelcom on claims it
would harm their partnership. Extelcom is 47 percent owned by
BayanTel.
According to an unnamed BayanTel source, the firm could no
longer financially sustain the loss-making Extelcom. Extelcom
President Advinculo Quiblat said that the firm would decide
within the week if it would file an appeal with the Supreme
Court.
DebtTraders reports that Bayan Telecommunications Inc's 13.500%
bond due in 2006 (BAYAN) trades between 18.5 and 20. For real-
time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=BAYAN
MAYNILAD WATER: Creditors to Grant US$100M Loan Time Extension
--------------------------------------------------------------
Creditors of Maynilad Water Services Inc are expected to approve
the six-month extension of the firm's US$100 million bridge loan
to mature on February 28, AFX News and Business World said on
Monday. An unnamed company source said that the company hopes to
finish its rate rebasing during the six-month extension of the
loan, which will permit it to raise more funds.
The source denied rumors that the creditors want the loan to be
collateralized with shares from Maynilad affiliate ABS-CBN
Broadcasting Corp.
Maynilad Water Services is a unit of Benpres Holdings
Corporation.
METRO PACIFIC: Explains Fort Bonifacio Proj Acquisition Report
--------------------------------------------------------------
Metro Pacific Corporation, in reference to the Business World
article entitled, "Two foreign groups keen on Fort Bonifacio
projects" published in the January 28, 2002, explained that
while there are indeed several groups who have expressed
interest in acquiring specific properties in the Global City,
these discussions are still in a preliminary stage and we are
not in a position to make any announcement or public disclosure
at the moment.
The article reported "Two more foreign groups are eyeing Fort
Bonifacio in Taguig for possible developments but only on a
project basis."
Metro Pacific Corp. Chairman, Manuel V. Pangilinan said a number
of groups have joined the list of companies interested to
acquire properties within the central business district. There
have been new parties with respect to specific properties. There
are one or two foreign groups and there are also local. These
are for specific properties in Fort Boni, 'Mr. Pangilinan said.
The MPC Chairman, however, refused to reveal the identities of
the interested groups."
The Company assured that should there be any transaction or
development which would require a public disclosure, it will
accordingly advise the exchange and the investing public at the
appropriate time and in the appropriate manner.
DebtTraders reports that Metro Pacific's convertible bond due in
2003 (METPAC) trades between 124 and 125. For real-time bond
pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=METPAC
MONDRAGON INTERNATIONAL: Clarifies Business World Report
--------------------------------------------------------
Mondragon International Philippines Inc, in reference to the
news article entitled, "CDC asks Supreme Court aid to collect
from Mondragon Leisure" published in the January 29, 2002 issue
of the Business World, which reported:
"Government lawyers have asked the Supreme Court to compel a
cash-strapped property developer to honor a compromise agreement
reached three years ago for the settlement of P325 million in
unpaid rentals."
"In a petition, the office of the government corporate counsel
(OGCC), representing Clark Development Corp. (CDC), said
Mondragon Leisure and Resorts Corp. (MLRC) should be ordered to
stick to the provisions of the 1999 deal or it will seize assets
of the Gonzales-controlled firm. ...Chief Government Counsel
Amado D. Valdez said MLRC could no longer renege on the earlier
agreement, which was approved by SC justices. ..."
clarified in its letter dated January 29, 2002, that Mondragon
has not received a copy of the petition referred to in the
Business World article, nor were the company aware that one had
been filed by the office of the government corporate counsel on
behalf of Clark Development Corporation. If the article is
accurate, Mondragon welcomes this development because the
company have said all along that it do have a valid Compromise
Agreement approved by the Office of the President in 1999
against which the then chairperson of PAGCOR took a hardline and
effectively prevented our banks and possible co-investors from
assisting us in fulfilling all the provisions we had agreed to.
Nevertheless, the firm complied substantially and CDC is aware
of this. Hopefully, so is the OGCC, or if not, they shall be. As
to our restructuring plan, this is under process with the First
Metro Investment Corporation, a fully owned subsidiary of
Metrobank. Other sources of revenue for us are 25 percent of the
gross winnings from the Mimosa Regency Casino, which reopened
seven months ago, and rentals from Mondragon House, our building
in Salcedo Village.
NATIONAL POWER: Moody's Changes Rating Outlook to Stable
--------------------------------------------------------
Moody's Investors Service on Monday revised the outlook of
National Power Corporation's ('NPC') Ba1 debt ratings to stable
from negative, following Moody's change of the outlook of its
sovereign ceiling ratings for the Philippines. NPC's Ba1 rating
reflects the Republic of the Philippines' unconditional and
irrevocable guarantee of its rated senior unsecured debts.
The National Power Corporation will declare 8,000 positions
empty as part of the firm's restructuring under the power sector
reform law, AFX News and Manila Standard reported Tuesday.
TCR-AP reported earlier this week that Napocor has canceled its
US$500 million, seven-year bond issue after prohibitive yields
from investors. The Energy Department and issuers Bear Stearns
and JP Morgan Chase withdrew the bond flotation after foreign
investors saying they were only willing to buy the bonds one
percentage point higher than the 9.25-9.50 yield that had been
canvassed by the investment banks during the bookbuilding.
PHILIPPINE AIRLINES: Fare Increase Approved on January 28
---------------------------------------------------------
Philippine Airlines and other carriers' fares were approved to
increase by 10 percent on January 28, according to DebtTraders
Analysts Daniel Fan, 852-2537-4111 and Blythe Berselli, 1-212-
247-5300. The move is to offset the negative effects caused by
the September 11, 2001 event.
Philippine Airlines may miss its P1 billion ($20 million) profit
target for its fiscal year ending March 2002. A loss in 2002 may
prevent the airline from listing its shares, which requires
three years of consecutive earnings. The airline has made a
profit for two consecutive years in 2000 and 2002.
Philippine Airlines Inc has deferred its planned initial public
offering (IPO) because of expectations that the company will not
meet the three-year profitability requirement of the Philippine
Stock Exchange, TCR-AP reported earlier this month, quoting the
airline's President Avelino Zapanta. He said that PAL posted a
net profit in the last two years while undergoing rehabilitation
but expects a net loss for 2002 ending March related to the
slump in airline traffic. He emphasized that PAL will likely be
in the red in 2002.
Philippine Airlines' 7.601% floating rate note due in 2000
(PHAIR) trades between 3.000 and 6.000. For real-time bond
pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=PHAIR
NATIONAL BANK: Tan Needs 40 Signatures for Rehabilitation MOA
-------------------------------------------------------------
Philippine National Bank (PNB) majority owner Lucio Tan needs
the signatures of 40 corporations and individuals associated
with his block to enforce the memorandum of agreement (MOA) he
intends to sign with the government for the rehabilitation of
PNB, AFX News and Philippine Star said Tuesday.
Tan and the Finance Department are expected to sign the MoA by
February 8, enabling the government to retake management of the
bank and oversee its revival. The deal will dilute Tan's 67
percent holding in the bank, held by individuals and corporate
entities, to 44.98 percent. The government is preparing
documents that will authorize Finance Secretary Jose Isidro
Camacho to sign the MoA.
RFM CORPORATION: Former Subsidiary Issues Dividend Payment
----------------------------------------------------------
The Philippine Stock Exchange said on Thursday that RFM
Corporation revealed that its former beverage subsidiary, Cosmos
Bottling Corp., now a part of the San Miguel Corporation and
Coke Group, has completed the necessary cash audit and issued
the payment of P1.029 billion cash dividend to all Cosmos
shareholders of record, as of December 20, 2001. The cash
dividend, declared last December 10, 2001, represents the excess
of cash and cash equivalents over short and long-term bank debt
of Cosmos, before the transfer to SMC and Coke, or as of
financial closing date on January 3, 2002.
The amount is inclusive of interest earned for the period, from
January 3, 2002 to not more than 2 days before payment date, or
covering the period when the audit of the cash levels were being
done. The applicable interest rate was the average 91-day T-Bill
rate of 8.873 percent on the last auction day prior to January
3, 2002. The recent sale transaction between RFM and SMC valued
Cosmos at P14 billion, making it the biggest deal of its kind in
the country last year.
The purchasers have likewise started the process of making a
tender offer to purchase the shares of the other Cosmos
shareholders. With around 2.3158 billion shares on a fully
converted and diluted basis that are subscribed and outstanding,
a Cosmos shareholder would get a cash dividend of around
P0.445425 per common share, and a purchase price of around
P6.045 per common share, both based on pre-tax amount. RFM
President and CEO Jose A. Concepcion III, who was also the
former Cosmos Chairman and CEO, said, ""with the payment of
this cash dividend and the forthcoming tender offer, we approach
the end of the Cosmos sale transaction. We are happy and proud
that we have created good value in Cosmos, and we were able to
share the gains with all the Cosmos shareholders who have
supported us all the way."
UNIWIDE HOLDINGS: Clears Opposition In Rehab Plan Report
--------------------------------------------------------
Uniwide Holdings Inc, in reference to the news article entitled,
"PNB opposes new changes to Uniwide rehabilitation plan"
published in the January 29, 2002 issue of the Business World,
which stated that "pushing for its right to foreclose on
properties of Uniwide Group of Companies, creditor Philippine
National Bank expressed strong objections to the second amended
rehabilitation plan prepared by the debt-saddled warehouse
operator. In an opposition filed with the SEC, PNB challenged
the viability of Uniwide's second amended plan, saying it is
unfair to creditors. 'The plan clearly defeats the rationale of
rehabilitation which is to protect the right and interest of the
creditors.' PNB said. ..." clarified that the company as of
January 31, 2002 have not received a copy of the opposition
filed by the Philippine National Bank.
According to its letter to the Philippines Stock Exchange, the
main objective of Uniwide's Rehabilitation Plan is to
rehabilitate the retail operations of Uniwide in order to
generate sufficient cash to fully pay its restructures secured
and unsecured debts and save jobs of thousand of employees. To
achieve this, Uniwide aims to reduce its debt to its minimum
level by maximizing the value of its properties for 'dacion en
pago' arrangements with its creditor banks. In order to maximize
the value of the properties, the issue of equitable distribution
of assets relative to the loan amounts must be addressed, thus
creditor banks must release properties in excess relative to the
loan amount to be settled.
=================
S I N G A P O R E
=================
ADROIT INNOVATIONS: Issues Shareholder's Interest Notice
--------------------------------------------------------
Adroit Innovations Limited posted a notice of changes in
substantial shareholder Apsilon Ventures Pte Ltd's interests:
Date of notice to company: 04 Feb 2002
Date of change of interest: 01 Feb 2002
Name of registered holder: Apsilon Ventures Pte Ltd
Circumstance giving rise to the change: Sales in open market at
own discretion
Shares held in the name of registered holder
No. of shares of the change: (189,000)
% of issued share capital: 0.07
Amount of consideration per share excluding brokerage,GST,stamp
duties,clearing fee: S$0.13
No. of shares held before change: 18,128,000
% of issued share capital: 7.14
No. of shares held after change: 17,939,000
% of issued share capital: 7.06
Holdings of Substantial Shareholder including direct and deemed
interest
Deemed Direct
No. of shares held before change: 0 18,128,000
% of issued share capital: 0 7.14
No. of shares held after change: 0 17,939,000
% of issued share capital: 0 7.06
Total shares: 0 17,939,000
The percentages are computed based on 254,030,178 issued shares
as of February 4, 2002.
CREATIVE TECHNOLOGY: Posts Shareholder's Interest Notice
--------------------------------------------------------
Creative Technology Ltd posted a notice of changes in
substantial shareholder Ng Kai Wa's deemed interest:
Date of notice to company: 04 Feb 2002
Date of change of shareholding: 31 Jan 2002
Name of registered holder: Ng Kai Wa
Circumstance giving rise to the change: Others
Please specify details: Refer to table created below
Shares held in the name of Ng Kai Wa
Circumstances giving rise to the change: Open Market Sale
No. of shares of the change:200,000
% of issued share capital:0.278%
Amount of consideration per share excluding: S$27.078 (for
100,000 shares),
brokerage, GST, stamp duties, clearing fee: US$15.10 (for
100,000 shares)
No. of shares held before change: 3,811,217
% of issued share capital: 5.292%
No. of shares held after changed: 3,611,217
% of issued share capital: .014%
KEN AIR: Applies for Provisional Liquidation
--------------------------------------------
A company press release on February 1, 2002 revealed that Ken-
Air Tours has applied to the Court for the appointment of a
provisional liquidator and for the Court to sanction a package
that would allow a third party to assist Ken-Air to fulfill its
commitment to its customers pending the orderly dissolution of
the company.
The customers' interest has always been Ken-Air's top priority.
For the customers who have been affected by the unfortunate
situation, all Ken-Air Holiday Stores will be closed on Saturday
and Sunday, 2nd and 3rd February. This will allow its management
and staff the time to update their records so that they will be
able to answer customers' enquiries regarding bookings when we
reopen at 10.00am on Monday, February 4, 2002.
In the meantime, as their records are being updated, their staff
will make every effort to contact as many affected customers as
possible over the weekend to advise them of their status and
answer their enquiries.
On February 4, 2002 the company announced to travelers that they
may be required to fill up -" the Request Refund Form" where
appropriate, which will be submitted to the appointed
Liquidator, who will determine their refund, if any.
The Volunteers and staff are in no position to determine that.
Please register at 3rd Floor first and get a number tag. They
will be instructed to proceed to either the 3rd Floor or the 4th
Floor using the Lift. The company will appreciate that only the
parties affected proceed to the Staff and Volunteers Table.
Please note the following:
1. Your Travel Insurance purchased is null and void. You
may fill a "Request Refund Form". We suggest that you purchase
your travel insurance again.
2. All Travel Vouchers and Prize Letters are null and void.
You may fill a "Request Refund Form"
3 Ken- Air Refunds or Money still owing to you for any
matters. You may fill a "Request Refund Form" with details
(Staff/ Volunteers will assist you)
4. Visas and Passports are all in order. You may collect your
Visa and Passport.
5. Air tickets that you have with you, are valid and you are
assured of flying.
6. For All Forward Travel Arrangements, your Staff will
enlighten you
In the meantime customers may email at: usa@kenair.com.sg or fax
us at 3338428. For updates log on to www.kenair.com.sg
===============
T H A I L A N D
===============
DELTA ELECTRONICS: Provides Inspection Update
---------------------------------------------
Delta Electronics (Thailand) Plc. provided further clarification
as follows:
"From inspection done by the Ministry of Industry and IEAT on
February 2, 2002 at 9:00am upon four Delta factories, conclusion
could be drawn as follows:
* Factory No. 1 Main structure does not appear to be
abnormal, only a fracture on 2nd floor at the 'cooling machine'
area. However, for the safety practice, we had stopped the
operation in order to have thorough inspection upon strength of
the area by 'certified engineer', within Monday the company will
submit the blueprint to the IEAT. The company has already
prepared and arranged all equipments, materials, labors and
engineers for the re-enforcements. Upon the approval of 'the
blueprint', the company is ready to proceed with the
construction that would be completed within 24 hours. The
factory is expected to start normal operation by February 6,
2002.
* Factory No. 2 The main structure does not appear to have
any abnormalities, therefore, the continuation of operations
could proceed as normal.
* Factory No. 3 The overall structure does not appear in any
way abnormal. There is only a slight slope on the floor, and to
be doubly safe, the company will submit 'the blue-print' to the
IEAT by Monday. The company has already prepared and arranged
all the equipments, materials, labors and engineers for the
repair. Upon the approval of 'the blueprint', the company is
ready to proceed with the repair that would be completed within
24 hours. The factory is expected to start normal operation by
February 6, 2002.
* Factory No. 4 The company has sold this fourth factory to
'Spring Industrial (Thailand) Company Limited' since the year
1999.
* Factory No. 5 The collapsed area has been cleared and is
safe. On other areas of similar structure, new design to re-
enforce the structure has been completed by a certified
engineer. The company is ready to submit the blueprint to IEAT
for approval within Monday. The company has also prepared and
arranged all the equipment, materials, labors and engineers for
the construction. Upon the approval of the blueprint, the
construction will be started and completed within 24 hours. The
factory is then ready to resume operation to compensate and
recover upon the sudden stoppage production quantity with
holiday overtimes and night shifts.
DELTA ELECTRONICS: SET Lifts `H' Sign
-------------------------------------
The Stock Exchange of Thailand posted an "H" sign on the
securities of Delta Electronics (Thailand) Public Company
Limited (DELTA) on Monday morning as DELTA had been unable to
disclose any information on the news reported that DELTA's
factories have been closed for inspections to the public via
Electronic Information Disclosure (ELCID) system.
As to date, DELTA has now met this requirement by releasing this
information to the SET as well as to general investors thus the
SET lifted the "H" sign from DELTA effective from the Monday
afternoon trading session of the 4th February 2002 onward.
LOXLEY PUBLIC: Reports Capital Increase Proceed Usage
-----------------------------------------------------
Loxley Public Company Limited (the "Company") would like to
report that following the Company's increase of its registered
capital from Bt400 million to Bt2,000 million by issuing 160
million new ordinary shares, the allocation of shares was
divided into 3 allotments:
Allotment No. 1
Increased by issuing 65 million new ordinary Received Bt568.75M
shares for sale to the Company's existing shareholders.
Allotment No. 2
Increased by issuing 10 million new ordinary Received Bt87.5M
Shares for sale to the directors and employees of the Company.
Allotment No. 3
Increased by issuing 85 million new ordinary
shares for conversion of the ECDs.
Total Bt656.25M
The cash proceeds from the capital increased, the Company has
used funds as:
1. Debt repayment and interest expenses Bt502.54 million
2. Retained for working capital Bt98.24 million
Remaining funds Bt55.47 million
P.E.P. FERTILIZER: Petition for Business Reorganization Filed
-------------------------------------------------------------
The Petition for Business Reorganization of fertilizer and
chemical products buyer and Seller P.E.P. Fertilizer Company
Limited (DEBTOR) was filed in the Central Bankruptcy Court:
Black Case Number 286/2544
Red Case Number 478/2544
Petitioner: P.E.P. FERTILIZER COMPANY LIMITED
Planner: Mr. Somkit Sumetachottimeta
Debts Owed to the Petitioning Creditor: Bt1,641,913,538.86
Date of Court Acceptance of the Petition: April 18, 2001
Date of Examining the Petition: May 14, 2001 at 9.00 AM
Court postponed the date of examining the petition to June 15,
2001
Court Order for Business Reorganization and Appointment of
Planner: June 15, 2001
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Matichon Public Company Limited
and Siam Rath Company Limited: July 2 , 2001
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Government Gazette: August 7, 2001
Deadline for the Planner to submit the Reorganization Plan to
the Official Receiver: November 7, 2001
Planner postponed the date of submitting the reorganization plan
#1st to December 7, 2001
Planner postponed the date of submitting the reorganization plan
#2nd to January 7, 2002
Contact: Mr. Somkit Tel, 6792525 ext. 144
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
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re-mailing and photocopying) is strictly prohibited without
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