/raid1/www/Hosts/bankrupt/TCRAP_Public/020304.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, March 4, 2002, Vol. 5, No. 44
Headlines
A U S T R A L I A
ANACONDA NICKEL: Restructuring Talks With Bondholders Begin
ANSETT HOLDINGS: ASIC'S Investigation Focuses on ANZ Financials
ANSETT HOLDINGS: Parent ANZ Welcomes ASIC Announcement
AUSTRALIAN MAGNESIUM: Issues Chairman`s Brief Summary Address
ERG LIMITED: Posts CEO's Open Briefing on Valuations, Losses
MURRIN MURRIN: S&P Lowers Ratings to `CC'; CreditWatch Negative
OMNI GROUP: Discloses Chairman's Shareholder Update Letter
UECOMM LIMITED: Chairman Steps Down, Stamm Takes Post
C H I N A & H O N G K O N G
ASIA TELECOM: Winding Up Sought By SHK Financial
GUANGDONG KELON: Still Conducting Internal Audit
LUCKY CITY: Winding Up Petition Pending
NORTHEAST ELECTRICAL: Posts Equity Interests Auction Result
PRIME KING: Winding Up Petition Slated For Hearing
WIRELESS INTERNETWORKS: Seeks Circular Dispatch Time Extension
I N D O N E S I A
ASTRA INTERNATIONAL: Debt Rescheduling an Option
CITRA MARGA: Govt to Revoke Revenue Sharing Decree by March
J A P A N
ARABIAN OIL: Narrows 2001 Net Loss to Y5.9B
GAP JAPAN: Fitch Lowers Rating to 'BB-'; Outlook Negative
HITACHI LTD: Expects FY Y480B Net Loss
HITACHI: Reorganizing Information, Telecom & Media Operations
HITACHI LTD: Withdraws From U.S. Color Picture Tube Business
MATSUSHITA ELECTRIC: Integrates MCI Domestic Sales Units
MISAWA HOMES: Eliminating 20% of Workforce
MITSUBISHI ELECTRIC: Sees Y70B Net Loss
MYCAL CORP: Creditor Claims Totaled at $US15.79B
K O R E A
DAEWOO ELECTRONICS: Creditors to Make Sale Decision This Week
HYUNDAI ENGINEERING: Books W809.5B Net Loss
KOOKMIN BANK: Issuing $500M Q302 Bonds
SHINHAN BANK: Paying 20% Dividend
M A L A Y S I A
ABRAR CORPORATION: Requisite Announcement Application Pending
CHASE PERDANA: Finalizes Debt Restructuring Scheme with FI
EPE POWER: Further Defaults Interest Payment
JUTAJAYA HOLDING: Winds Up Unit
KELANAMAS INDUSTRIES: Finalizes Proposed Scheme Negotiations
MGR CORPORATION: SAs Seek Regularization Plan Time Extension
PAN PACIFIC: SC Gives Time Extension to Rebuild Core Business
SATERAS RESOURCES: Unit Faces Winding Up Petition
SISTEM TELEVISYEN: Creditors OK Proposed Scheme of Arrangement
SRI HARTAMAS: Special Administrators Released from Appointment
TAJO BHD: In the Midst of Talks With Potential White Knights
WING TIEK: Awaits KLSE's RA Time Extension Application Reply
P H I L I P P I N E S
NATIONAL POWER: Konsortium Logistik Eyes Transmission Assets
PILIPINO TELEPHONE: Becomes Independent From Parent PLDT
S I N G A P O R E
NOBEL DESIGN: Widens 2001 Loss to 5.4M
PRESSCRETE HOLDINGS: In Liability Settlement Talks W/ Supplier
T H A I L A N D
ASIA IRON: Business Reorg Petition Filed in Bankruptcy Court
GENERAL ENGINEERING: Discloses Recently Passed Resolutions
L.P.N. DEVELOPMENT: Dividend Payment Suspended
SINO-THAI RESOURCES: Appoints New Financial Consultant
TPI POLENE: Creditors Hold Key to US$375M Deal
TPI POLENE: Ups 2001 Consolidated Revenue to Bt22,551M
- - - - - - - -
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A U S T R A L I A
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ANACONDA NICKEL: Restructuring Talks With Bondholders Begin
-----------------------------------------------------------
Anaconda Nickel Limited (ASX: ANL) announced Thursday a
consolidated loss of $457,534,000 for the half-year period ended
31 December 2001. The Company also announced it has initiated
debt-restructuring negotiations with its US bondholders.
The half-year result includes an operating loss before financing
and write downs for the six-month period of $46 million, and
write downs and financing costs of $411 million resulting mainly
from changes in accounting policies and other write downs
associated with projects, low-grade ore stockpiles and non-core
assets. The changes in accounting policies were implemented to
improve the relevance and reliability of the financial reports.
The write-downs come at the end of a comprehensive internal
management review process first initiated in July 2001 and
accelerated since the appointment of the new Chief Executive
Officer in November 2001.
Since the Strategic Review process ended in December 2001, the
new management team, led by CEO Peter Johnston, has downsized
and restructured Anaconda's management team and head office
functions, prepared conservative new budgets and cashflow
forecasts, stopped discretionary spending, substantially reduced
operating costs and focused on improving the operational
performance of the Murrin Murrin nickel cobalt project.
Production at Murrin Murrin for the six months to December 2001
was 13,123 tonnes of nickel and 700 tonnes of cobalt, compared
with 8,391 tonnes of nickel and 577 tonnes of cobalt for the
previous corresponding period.
Production for the period was significantly affected by the
planned major shutdown during September and October.
The shut down incorporated rectification works as part of the
ramp-up schedule, statutory inspections and major works in the
acid plant, the pressure acid leaching and mixed sulphide
circuits. The plant has been performing in accordance with the
new budget since December.
Mr Johnston described the half-year results as a deliberate
"cleaning of the decks" strategy.
"This is a necessary step towards cleaning up the balance sheet
and building a lean cash-flow positive business," said Mr
Johnston.
Mr Johnston stated that the Company would initiate "a formal
approach to the secured bond holders of its wholly owned
subsidiary Murrin Murrin Holdings Pty Ltd with a view to
renegotiating the issuer's obligations to those bondholders on
the basis that, as the financial position of the Group presently
stands, the issuer may well go into default in the short term in
relation to its interest and debts service reserve account
obligations."
The report noted that the Anaconda subsidiary, Murrin Murrin
Holdings Pty Ltd, has been in default of a borrowing indenture
since November 1999, and the Company is not expected to
replenish its debt service reserve account for US$15.9 million
as required by the borrowing indenture in March 2002. This would
constitute an event of default.
Anaconda announced that US investment bank, Lazard Freres & Co
LLC and its Australian affiliate The Caliburn Partnership, and
US and Australian legal advisers have been engaged to advise it
in connection with its debt restructuring negotiations. The
company's advisers have conducted due diligence and an
independent reserve audit. A business valuation and debt service
analysis model have also been prepared.
Based on progress to date and the progress of similar
restructurings, the Directors have a reasonable expectation that
these negotiations will result in an acceptable restructuring of
the Consolidated Entity's debt and the addition of further
working capital. The Company has a reasonable expectation of
reaching appropriate arrangements with its secured creditors
once formal negotiations commence in March 2002.
Negotiations are at an advanced stage with Glencore for a
further drawdown of US$8.5 million from the Glencore working
capital facility. Glencore is Anaconda's largest shareholder
(33.8%) and 40% joint venture partner in the Murrin Murrin
Nickel Cobalt Operation. Anaconda's other major shareholder is
Anglo American plc (23.7%).
Mr Johnston stated, "When I arrived at Anaconda in December, one
of my first decisions was to commission new budget forecasts and
cashflow projections to provide our management team and the
directors with an accurate picture of the company's financial
position. The new management team has introduced a more
conservative and realistic approach to cashflow management and
budget forecasting."
"This `clearing of the decks' represents the beginning of a new
period for Anaconda. The Company's total focus is now on its
Murrin Murrin nickel operation and we are confident that the
plant will be generating positive cash flow within the budget
forecast period."
Mr Johnston concluded by saying, "We have already made the tough
decisions and firmly believe the company has the capacity to
remain viable. As I have said since day one, Anaconda is focused
on increasing nickel production and reducing costs. We are
confident that this outcome can be achieved and sustained. Plant
performance has improved since December, and most of the major
plant modifications and rectification works have been
successfully completed. Under these circumstances the board
agreed that it was prudent to "clear the decks" and clean up the
balance sheet."
Anaconda entered into formal arbitration hearings in January
2002 and expects to conclude in May 2002 in relation to its
claims against Murrin Murrin design and construction
contractors, Fluor Daniel.
"I can not comment specifically on the arbitration case at this
time, however I can say that the case is progressing well. The
Company believes the matters that are the subject of the
arbitration have contributed significantly to its present
financial position," said Johnston.
The Company will continue to keep the market informed as to the
progress of negotiations with US bondholders.
For further information contact:
Peter B Johnston
ANACONDA CEO
Ph: +61 8 9212 8645 (Direct)
Media Contact:
Tony Dawe
WARD HOLT CORPORATE COMMUNICATION
Ph: + 61 8 9221 8722
Mob: 0413 322 110
ANSETT HOLDINGS: ASIC'S Investigation Focuses on ANZ Financials
---------------------------------------------------------------
The Chairman of the Australian Securities and Investments
Commission (ASIC), Mr David Knott, updated the market on ASIC's
investigation into the collapse of Ansett Holdings Limited
(Ansett).
On 14 September 2001 ASIC commenced a wide-ranging investigation
into the Ansett collapse. Since that time, extensive enquiries
have been conducted in Australia, New Zealand and Singapore
involving a comprehensive review of company records and
examinations of directors and other officers. Legal advice has
been provided by Counsel on a variety of issues.
ASIC has now reached the view that, based on the evidence
currently available, there is no realistic prospect for
successfully prosecuting the directors of Ansett for breach of
their general duties of care under the Corporations Act or for
insolvent trading. This view is confirmed by Senior Counsel.
The factors contributing to this conclusion include the steps
taken by the Ansett directors to obtain financial support from
their parent company, Air New Zealand Limited (ANZ), including a
letter of comfort for $400 million for working capital
commitments in August 2001.
It is considered unlikely that evidence exists which would cause
these conclusions to be reconsidered but ASIC will reserve its
position until all aspects of the investigation are concluded.
ASIC's attention is now focused on the adequacy of disclosures
made to the market by ANZ regarding its financial position in
the period prior to 12 September 2001. The Commission believes
that, depending on the outcome of further enquiries, the public
interest may be served by the commencement of a representative
action for damages against ANZ in relation to the level of its
financial disclosures.
There are considerable complexities which ASIC must address
before making a decision on this matter. These include further
consideration of the disclosures made by ANZ; establishing the
identity of persons who have suffered damage as a consequence of
any failure by ANZ to keep the market properly informed; and
determining the damages for which a lawful claim (if any) may be
made under Section 50 of the ASIC Act on behalf of such persons.
ASIC has noted the contents of the Report of the New Zealand
Stock Exchange (NZSE) Market Surveillance Panel dated 18
February 2002 containing a review of ANZ's compliance with the
disclosure requirements of NZSE Listing Rule 10.1. The findings
of that Report were carefully considered by ASIC before deciding
to proceed with the investigation.
ASIC has established a special task force to work through these
issues over the next three months. The task force will be headed
by Mr Jamie Orchard, ASIC's Director of Enforcement (South
West). It is hoped that the Commission will be in a position by
31 May 2002 to make a final decision in relation to this matter.
Public advertisements will be published next month providing
additional information about the possible proceedings, including
a process for relevant persons to contact ASIC.
ASIC will not comment further on this matter at this time.
ANSETT HOLDINGS: Parent ANZ Welcomes ASIC Announcement
------------------------------------------------------
Air New Zealand (ANZ), parent company of Ansett Holdings
Limited, welcomes the announcement by the Australian
Securities & Investments Commission (ASIC) that there is no
sound basis for instituting proceedings in respect of insolvent
trading or possible breaches of director's duties.
The Company will continue to co-operate fully with ASIC in its
ongoing enquiries into the adequacy of disclosures made to the
market in the period leading up to 12 September. This matter has
already been reviewed by the Market Surveillance Panel of the
New Zealand Stock Exchange, which found that the Company's
market disclosures met the requirements of its Listing Rules.
AUSTRALIAN MAGNESIUM: Issues Chairman`s Brief Summary Address
-------------------------------------------------------------
Australian Magnesium Corporation Limited posted Chairman Robert
Champion de Crespigny's supplementary remarks to shareholders at
the General Meeting held Thursday, 28 February 2002, at the
Carlton Crest Hotel, corner Ann and Roma Streets, Brisbane
commencing at 10.00 am:
CHAIRMAN'S ADDRESS - GENERAL MEETING OF SHAREHOLDERS
A great deal of work has been done behind the scenes on project
implementation and corporate activities since the Annual General
Meeting last November.
I wish to briefly discuss three Items of Interest, but before I
do this I wish to advise you of an excellent safety achievement
at our Gladstone Demonstration Plant which last weekend achieved
3 years without a lost time injury. I am sure everyone shares
management and the Board's delight with this achievement, which
reflects our emphasis on health and safety across the group, and
which we hope will be the forerunner for many more records.
Interim Financial Report: The first item I wish to touch on is
AMC's financial results. Earlier this month the Company released
its half year results AMC's consolidated loss for the six months
was $3.1 million, which amounts to a 72 per cent improvement on
a loss of $11.3 million for the previous corresponding half
year. We are not proud of reporting losses, but this was a major
improvement and the loss was in line with forecasts since we had
to absorb a number of expenses and costs related to AMC's fund
raising activities last year. Behind this result, QMAG improved
strongly, driven by an improved operational performance with
record production and sales of magnesite and magnesia. Magnesia
production rose 8.2 per cent to 98,528 tonnes and magnesia sales
increased 17 per cent to 98,305 tonnes. QMAG's operating result
improved by 48 per cent from a loss of $2.9 million to a loss of
$1.5 million and net cash flow of $2.6 million was generated. We
are looking to QMAC to sustain this cash flow generation.
Stanwell Magnesium Project Development: A lot of work on the
Stanwell Magnesium Project tendering has been achieved. AMC is
currently assessing a number of engineering, procurement and
construction tenders from a range of world class Australian and
International firms. AMC expects a number of major project
milestones will be achieved in the next few months, which will
result in major contracts being awarded. Engineering in two
major areas of the project has already commenced. In Rockhampton
a project co-ordination office has opened and work at Stanwell
on initial site facilities for the construction crews is due to
commence shortly. Major civil works are expected to commence in
the June quarter and full construction mobilization is expected
in the September quarter of 2002, as planned.
Magnesium Sales and Technology Opportunities: Those who know AMC
well, know we do not intend to be just a one-dimensional project
company. Leveraging and licensing the AM Magnesium production
technology - which is the most modern and most environmentally
progressive in the world - are opportunities AMC is actively
pursuing. Our goal also is help grow the magnesium market
through additional sales contracts and alliances and foster
magnesium car component programmes. AMC is continuing its
initiatives on the market development and technology fronts with
a number of international parties. Through this we shall support
our objective of being an Australian company with a global
leadership position in its industry.
Your Board and Management are focused on growing many different
aspects of your Company and I look forward to updating you on
progress as it evolves.
ERG LIMITED: Posts CEO's Open Briefing on Valuations, Losses
------------------------------------------------------------
ERG LIMITED posted this open briefing with corporatefile.com.au
and Chief Executive Officer, Peter Fogarty:
CORPORATEFILE.COM.AU
ERG Group Limited on February 27 announced its loss for the
half-year to December 2001 will range from $175 million to $195
million. The loss will include asset write-downs in the range of
$140 million to $160 million. Are you now valuing at zero the
licenses represented by unlisted shares within ERG's balance
sheet?
CEO PETER FOGARTY
Yes. But it's important to recognize we've made a provision for
the diminution in value, the value hasn't necessarily been
written off forever. As the companies, such as Triumphant
Launch, PCL, card.etc and ECard, mature their business plans,
their value will be more apparent.
Some of the companies are more advanced in their business plans
than others and some have reasonable cash reserves. ECard, for
instance, has $23 million in the bank. We've been consistent by
writing them all down to zero. There shouldn't be any confusion.
I'd like to also make clear that the write-downs are non-cash
accounting entries.
CORPORATEFILE.COM.AU
Why zero?
CEO PETER FOGARTY
In this decision, we've strictly followed the principles
detailed by our auditors last year. They had question marks over
the value of card.etc in Germany even though the company has
cash in the bank and powerful shareholders. We're adopting the
policy across the board. It seems illogical to us to not include
some investments and yet carry other identical type investments
in our accounts.
In our opinion, none of the entities are worthless. That
obviously appears contradictory given we're writing values down
to zero but that's our interpretation of the accounting rules.
Consistent with that decision, we've also decided not to book
license fee revenue of $55 million received in the form of
shares in unlisted companies in the December 2001 half year.
With the write-downs, the decision not to recognize the income
has obviously pushed us into a loss.
We've got to be focused on running the business and not be
distracted by accounting policy. We've been criticized for
having accounts that are hard to follow. They'll now be clearer.
Longer term, this decision will be seen to have been in
shareholders' best interests. Given the negative market
reaction, which we expected, some shareholders will have
difficulty accepting that today. Hard decisions are usually
best. We'll rebuild from here.
The write down is consistent with our plan to give greater
clarity to the investment community. In the half-year report we
hope to demonstrate that our accounts and the presentation of
them is significantly clearer than in the past.
CORPORATEFILE.COM.AU
If you continue this policy of not booking license fee income as
revenue when received in the form of shares, is it inevitable
ERG will record losses until recurring revenues exceed costs?
CEO PETER FOGARTY
No it's not. Our profitability is not simply reliant on the
infrastructure part of the business generating recurring
revenue. It is certainly an important and growing part of our
business, however we continue to win and deliver major transit
ticketing systems throughout the world. We see no reason why our
historical rate of success in this area will not continue. We
have detailed our five core earnings streams in our 2001 annual
review and they remain accurate.
CORPORATEFILE.COM.AU
Why are you continuing to take equity in unlisted companies if
you're not prepared to book a value on the equity received?
CEO PETER FOGARTY
We've always assessed the merits of an equity stake versus a
cash payment on a case-by-case basis and that will remain our
approach. But, the licensing of our technology and receipt of
equity in the licensee companies is, in our view, the best way
to maximize shareholder value. If we were to demand a cash
payment up front for each license we'd have no future interest
in the business. The upside would be lost. Not surprisingly, as
the technology supplier, our partners also want us to be
involved.
CORPORATEFILE.COM.AU
How long can you survive without a fresh equity injection given
the likelihood of future losses?
CEO PETER FOGARTY
We have no intention of going back to the market for fresh
equity. We've just completed a rights issue raising $104 million
and those funds will assist us in the funding of the acquisition
of Proton World. Our expectations regarding cash inflow haven't
changed. We've made several comments to the market and indicated
cash inflow of about $200 million this year. In the half-year to
December, it was around $120 million. Our 4B, to be lodged with
the ASX on 11 March will report a healthy cash position.
We expect to fund our growth by returning capital from our major
infrastructure projects or realizing a return on the investments
we have made in those projects.
CORPORATEFILE.COM.AU
Can you give any guidance on the likely loss in the six months
to June?
CEO PETER FOGARTY
No. We've always had a policy of not giving forecasts on
profitability. The timing of projects is not always in our
control and timing has a significant impact. The Sydney project
delay is an obvious example.
CORPORATEFILE.COM.AU
What will be the crucial factors in determining outcomes in
future periods?
CEO PETER FOGARTY
There are a number of factors. Completing the acquisition of
Proton World is an important transaction as it ensures we have
control of the two most powerful smart card technologies in the
world. The acquisition brings in Visa and Amex and major banks
as shareholders and will advance the flow of recurring revenue.
Another important event will be the final sign-off of the Sydney
contract. We also expect a decision on the Brisbane tender and a
finalization and settlement of the Melbourne claim. All are
important milestones in securing a strong position on the
eastern coast of Australia.
We also have several contracts pending. I think it's fair to say
that there's about three or four to be decided in various parts
of the world over the next month or so.
In addition, we've got a number of large ventures with some
powerful strategic partners. All are focused on utilizing the
multi-application smart card, not just the transit aspects.
They're not tender related, they're negotiations, and we hope to
get one or more concluded in the Americas and Europe before
June.
We have a number of opportunities we are working on. We don't
have to fund all these projects ourselves and perhaps that's
where the market gets confused and concerned about cash flow
requirements. Some of these projects will be self-funding and
others will have banking partners to fund them.
CORPORATEFILE.COM.AU
Thank you, Peter.
MURRIN MURRIN: S&P Lowers Ratings to `CC'; CreditWatch Negative
---------------------------------------------------------------
Standard & Poor's lowered on February 28, 2002 its issue ratings
on Murrin Murrin Holdings Pty. Ltd.'s (MMH) US$340 million
fixed-rate notes due in 2007 and its US$62 million amortizing
floating-rate notes due in 2005 to `CC' from `B+'. At the same
time, the issue rating assigned to Glencore Nickel Pty Ltd.'s
(GN) US$300 million bonds due in 2014 was lowered to `CC' from
`BB-'. Both companies remain on CreditWatch with negative
implications. The obligations of both issuers are currently
highly vulnerable to nonpayment.
"It is unlikely that either MMH or GN will generate sufficient
cash flow from the Murrin Murrin joint venture to replenish debt
service reserve accounts and meet their future debt obligations
in the short-term," said Peter Stephens, associate director,
Corporate & Infrastructure Ratings. "In the past, both issuers
have relied on their shareholders to provide funding to meet
operating cost and scheduled debt service shortfalls."
The Murrin Murrin joint venture has been under cash flow
pressure due to the weaker-than-expected operating performance
and low nickel and cobalt prices. Also, its progress toward
commercially sustainable operations has been slower than
expected, thus compounding the already tight cash position and
uncertainty over the quantum of compensation in the arbitration
with Fluor Daniel Australia Pty. Ltd., the project construction
engineers. The arbitration for claims over construction and
ramp-up is expected to be resolved by June 2002.
MMH is expected to make its March 1, 2002, interest payment of
US$15.9 million due on its fixed-rate US$340 million notes,
however, insufficient cash reserves and cash flow will limit the
payment of future interest obligations. Its quarterly interest
payment of about US$2 million on its US$62 million floating-rate
notes is due on March 15, 2002, and will be paid from a debt
service reserve (DSR) account, with the next payment in June
2002 vulnerable to nonpayment. GN is expected to meet its
interest payment of US$13.5 million at June 1, 2002, from funds
available in its DSR account. However, the replenishment of this
account is unlikely to be cash flow funded from the Murrin
Murrin joint venture, therefore, payment of interest and debt
amortization of US$21 million due at Dec. 1, 2002 is
questionable.
"Both MMH and GN are expected to hold discussions with
bondholders in mid March 2002 with a view to renegotiate the
current indebtedness. At such time, Standard & Poor's will
update or resolve the CreditWatch," added Mr. Stephens.
OMNI GROUP: Discloses Chairman's Shareholder Update Letter
----------------------------------------------------------
The Omni Group Limited EGM occurred as planned on the 11th
February 2002 and all motions were unanimously approved. As a
result Omni Group Limited is now renamed ECSI Limited and on
behalf of all Directors, Chairman J Green thanks all
shareholders for the support.
The prospectus was due to close on the 11th February 2002,
however this has not occurred due to a complaint submitted to
the Australian Securities Investment Commission (ASIC) from a
member of the public.
The Board was very surprised by this last minute occurrence,
which was believed has no substance, however the ASIC has
decided to issue a stop order to the prospectus and raised some
issues. The Board has decided to address and action these to
ensure no impediment to re-listing and will only mean a minimal
delay to re-listing.
Minimum funds have already been raised, and the business is
progressing and the Board advised that as stated in the
prospectus work has started on the Beijing rollout orders are
now being forwarded to ECSI.
Despite delays, the Company's progressing with Jeton to expand
the rollout as outlined in the prospectus. Beijing is only the
first of the initial 10 cities to be rolled out.
Jeton and Chinese investors chose to support the ECSI listing on
the ASX because as the Company grows the stability, transparency
and accountability of the ASX and the Australian financial
system will be a great asset to ECSI and all involved.
The Board remains confident that ECSI will achieve its
objectives and in doing so will return significant rewards to
shareholders. Regular shareholder news updates will ensure you
are kept informed of the companies' progress.
Should you require more information please contact Nigel
Kassulke, public relations, on 02 9252 0622.
Below is the letter of Chairman J Green to shareholders:
ECSI LIMITED
FORMERLY OMNI GROUP LTD
LETTER TO APPLICANTS
Thank you for applying for shares in ECSI Limited (ECSI)
pursuant to the replacement prospectus dated 21 December 2001
(Prospectus).
As the new Chairman of ECSI I am writing to update you on our
progress towards re-listing and on the status of your
application for shares in ECSI.
PROGRESS TOWARDS RE-LISTING
I can confirm that all resolutions considered at the
shareholders' meeting contemplated in the Prospectus were
unanimously approved by shareholders on 11 February 2002.
Omni Group Limited is now called ECSI Limited (short for
Electronic Control Security International) to reflect the
company's change of focus to high technology security monitoring
in China.
In the current climate of heightened demand for security and
China's entry into the World Trade Organization, we believe
there are significant opportunities for ECSI to create a strong
growth business from which shareholders could reap rewards.
NEXT STEPS
The offer under the Prospectus was due to close on 11 February
2002. However, this has not occurred due to the Australian
Securities and Investments Commission (ASIC) issuing an interim
stop order on the Prospectus in response to a complaint from a
member of the public.
The Board was surprised by this last minute hurdle and believes
that the complaint has no merit. The Board is working with ASIC
to try and remove any impediment to re-listing.
We believe this will mean a minimal delay to re-listing.
ECSI sought to raise a minimum of $8 million in funds under the
prospectus to help grow the business in China. These funds have
been secured.
SUPPLEMENTARY PROSPECTUS
The Board intends to lodge a supplementary prospectus with ASIC
as soon as possible. This supplementary prospectus will contain,
among other things, revised financial information in order to
address ASIC's concerns in respect of the Prospectus. As soon as
this supplementary prospectus is lodged ECSI will, in accordance
with section 724(2)(c) of the Corporations Act:
* issue you with ECSI shares pursuant to your application
under the Prospectus (Application);
* provide you with a copy of the supplementary prospectus;
and
* give you 1 month to withdraw your Application.
If you choose to withdraw your Application, your ECSI shares
will be cancelled and your application money refunded.
THE BUSINESS
The Jeton contract in China is progressing and the Board is
pleased to advise that, work has commenced on the Beijing roll-
out of Jeton's National Alarm Response System and orders are now
being forwarded to Electronics & Computing 21 Limited, a wholly
owned Chinese subsidiary of ECSI. Jeton has the necessary
licenses from the Chinese Government to roll-out its National
Alarm Response System in a number of cities throughout China.
ECSI and Jeton are planning the extension of the roll-out as
outlined in the prospectus. Beijing is the second of the initial
ten major Chinese cities where Jeton is licensed to roll-out the
National Alarm Response System.
SHAREHOLDERS
Former director of the Ministry for Public Security and CEO of
Jeton, Mr Lu Xiao Bing and Mr Du Kui will hold approximately ten
percent of ECSI's shares. I expect that Chinese investors will
support the ECSI listing on the Australian Stock Exchange
Limited as the Australian financial system will promote the
stability, transparency and accountability of ECSI.
For any queries relating to this letter or future announcements
please contact Nigel Kassulke at Cannings, on 02 92520622.
UECOMM LIMITED: Chairman Steps Down, Stamm Takes Post
-----------------------------------------------------
Uecomm Limited Chairman, Bob Green, announced Thursday that he
is stepping down as a director and Chairman of the Company,
effective immediately, and is to be succeeded as Chairman on an
interim basis by Keith Stamm.
"Keith Stamm has had a close involvement with Uecomm, dating
back to its establishment as an operating unit of United Energy
in the late 1990's. Keith's involvement in the early growth of
Uecomm occurred during his period as Chief Executive Officer of
United Energy between August, 1997 and February 2000," he said.
Mr Green added that Mr Stamm's appointment is on an interim
basis whilst a search is undertaken for a suitably experienced
Australian based additional director for appointment to the
Board. A decision on filling the role of the Chairman for the
longer term would be made by directors following that
appointment. "Whilst directors are anxious to add another
director to the Board as quickly as possible, it could
be expected that this search may take some months to find a
candidate with the right skills, knowledge and business acumen
to complement those of existing Board members."
Mr Green also announced that Uecomm Non-Executive Director and
Deputy Chairman, Don Bacon, would be succeeded by Mr Bob
Holzwarth, also effective Thursday, 28 February 2002.
"The appointment of Bob Holzwarth as a director and Deputy
Chairman is consistent with the role fulfilled by Don Bacon, who
has resigned to accept another overseas posting with UtiliCorp
United. Mr Holzwarth also replaces Don Bacon as CEO of United
Energy. Bob brings to the Board of Uecomm and to the Deputy
Chairman's position significant international utility expertise
at the senior management level which will complement existing
Board members' capabilities and experience," he said.
Mr Green expressed his appreciation to Mr Bacon for his efforts
as Deputy Chairman, and in assisting to turn Uecomm around in a
very difficult trading and sector environment. "I am confident
that I leave Uecomm at a time when the turn around is well
underway. I firmly believe that Uecomm and its shareholders can
now look forward to a more positive future," he said.
Mr Green's resignation follows his recent appointment as
President and Chief Executive Officer of UfiliCorp United Inc;
Mr Stamm has recently been appointed as President and Chief
Operating Officer of Global Networks Group for UfiliCorp.
TCR-AP reported in early February that Uecomm has reviewed its
operational structure. During 2001 Uecomm reduced staff numbers
and in doing so significantly cut overheads. It has also
renegotiated supplier costs and this has seen additional savings
for the Company. As a result, Uecomm moves into 2002 with a much
lower operating cost base.
================================
C H I N A & H O N G K O N G
================================
ASIA TELECOM: Winding Up Sought By SHK Financial
------------------------------------------------
SHK Financial Data Limited is seeking the winding up of Asia
Telecom Information Limited. The petition was filed on December
20, 2001, and will be heard before the High Court of Hong Kong
on March 13, 2002 at 9:30 am.
SHK Financial holds its registered office at Level 12, One
Pacific Place, 88 Queensway, Hong Kong.
GUANGDONG KELON: Still Conducting Internal Audit
------------------------------------------------
The Board of Directors (the Board) of Guangdong Kelon Electrical
Holdings Company Limited (the Company) informed that, as
previously announced on 17 December 2001, 18 January 2002, 29
January 2002 and 6 February 2002, the Company is still
conducting its internal audit in relation to the connected
transactions and inter-company financial arrangements with
Guangdong Kelon (Rongsheng) Group Company Limited (GKG).
Currently, the Company Board is reviewing the results of the
internal audit and is carrying out a final confirmation of the
contents of the announcement with GKG and will release such
announcement as soon as possible.
Trading in Company shares remains suspended pending the release
of such announcement.
LUCKY CITY: Winding Up Petition Pending
---------------------------------------
Lucky City International Limited is facing a winding up
petition, which is slated to be heard before the High Court of
Hong Kong on March 20, 2002 at 9:30 am.
The petition was filed on December 27, 2001 by Bank of China
(Hong Kong) Limited (the successor corporation to The National
Commercial Bank pursuant to Bank of China (Hong Kong) Limited
(Merger) Ordinance (Cap. 1167) of 14th Floor, Bank of China
Tower, 1 Garden Road, Central, Hong Kong.
NORTHEAST ELECTRICAL: Posts Equity Interests Auction Result
-----------------------------------------------------------
The Board of Directors of Northeast Electrical Transmission &
Transformation Machinery Manufacturing Company Limited (the
Company) (the Board) has noted an increase in the trading volume
of the shares in the Company on 26 February 2002. They are not
aware of any reasons for such increase except disclosed herein.
The Company Board of Directors also announced the auction result
of the equity interests of Northeast Electrical Transmission and
Transformation Equipment Group Corporation Limited (NET) in the
Company. Reference is made to the announcement of the Company
dated 8 May 2001 (the Announcement, in which the Company
announced that all the equity interests of NET in the Company
were frozen. On 27 February 2002, the Company was notified by
Shenyang Intermediate People Court that certain State-owned
legal person shares of the Company held by NET were put to
auction. NET, being the controlling shareholder, currently holds
380,520,000 shares, representing approximately 43.57% of the
existing issued share capital of the Company.
As stated in the Announcement, the 266,520,000 State-owned legal
shares (the Legal Person Shares), representing approximately
30.52% of the total share capital of the Company, held by NET
were ruled to be frozen by Shenyang Intermediate People's Court
until 22 April 2002 owing to the indebtedness of NET with
Shenyang Branch of State Development Bank. The Legal Person
Shares were legally put to auction by Shenyang Intermediate
People's Court on 25 February 2002. After the bidding, Shenyang
Shengang Industrial Company Limited and Shenyang Xintai Shengda
Equipment Company Limited, which are independent legal entities
not connected with the directors, chief executive or substantial
shareholders of the Company or any of its subsidiaries or an
associate of any of them, got 230,000,000 shares, which
represented 26.34% of the total share capital of the Company,
and 36,520,000 shares, which represented 4.18% of the total
share capital of the Company, respectively.
The change of equity interests is subject to the completion of
formalities of share registration and transfer as required by
Shenzhen Stock Exchange. Upon completion of the registration
procedures for share transfer, Shenyang Shengang Industrial
Company Limited will become the single largest shareholder of
the Company. Currently the Board did not have any information on
Shenyang Shengang Industrial Company Limited. Further
announcement will be made by the Company to keep the
shareholders and the public informed of any development on the
above as and when appropriate.
In addition, the litigation involving the Company for being a
guarantor of a loan made to NET by China Everbright Bank as
announced by the Company on 24 January 2001 is still under
reconciliation by the court. The date for the next hearing to
discuss the lawsuit against NET has not been fixed.
The Board also confirmed that there are no negotiations or
agreements relating to intended acquisitions or realizations
which are discloseable under paragraph 3 of the Listing
Agreement, neither is the Board aware of any matter discloseable
under the general obligations imposed by paragraph 2 of the
Listing Agreement, which is or may be of a price sensitive
nature.
PRIME KING: Winding Up Petition Slated For Hearing
--------------------------------------------------
The petition to wind up Prime King International Limited is set
for hearing before the High Court of Hong Kong on March 8, 2002
at 9:30 am. The petition was filed with the court on January
28, 2002 by Iao Son Hong Tinta E Vernizes Lda whose registered
office is situated at Rua De Pequim No. 174 Cemtrp Cp,/ Lpmg
Fat. 16 Andar D/E Macau.
WIRELESS INTERNETWORKS: Seeks Circular Dispatch Time Extension
--------------------------------------------------------------
Dongguan Defa Investment Limited (Defa), the Financial Advisers
of Wireless InterNetworks Limited (Receivers and Managers
Appointed) (the Company), in regard to the Company's
Restructuring involving Capital Restructuring, Asset Transfer,
Share Transfer, Debt Restructuring involving Schemes of
Arrangement with Creditors, Subscription for New Shares, Asset
Injection Involving a Major Transaction and Whitewash Waiver,
announced that applications have been made to the Executive and
to the Hong Kong Stock Exchange for the grant of a further
extension of time for the dispatch of the Circular to 31st
March, 2002.
Under Rule 8.2 of the Code and Rule 14.13(2) of the Listing
Rules, the Circular, which will be a combined composite circular
of the Company and Defa, for the purposes of the Code, and,
inter alia, a major transaction circular of the Company for the
purpose of the Listing Rules, was required to have been
dispatched to shareholders of the Company within 21 days from
the date of publication of the Principal Announcement.
Waivers were previously granted by the Executive and the Stock
Exchange for further extensions of time for the dispatch of the
Circular to 31st January, 2002 and to 1st March, 2002. However,
more time is required to prepare the Circular.
=================
I N D O N E S I A
=================
ASTRA INTERNATIONAL: Debt Rescheduling an Option
------------------------------------------------
PT Astra International said while it is considering rescheduling
debts falling due this December, it still hopes to meet
repayments using operational cashflow or money raised through
asset sales, AFX reports, citing Corporate Secretary Aminuddin.
"First of all we will try to get money from operational
(activities). Secondly, we will try to get money by selling
assets. If it's not enough, maybe we will have to reschedule our
debt," Aminuddin said. "But that is the last alternative."
With debts worth of US$133 million and Rp164 billion due in
December, Astra desires to sell its non-core assets. Last month
it agreed to sell its 35 percent share in a telecommunications
operator being acquired PT Telekomunikasi Indonesia.
Aminuddin said the Company has not yet decided which asset will
be the next priority in the divestment strategy. Astra is still
reviewing its position and has yet to appoint a financial
advisor on the matter.
CITRA MARGA: Govt to Revoke Revenue Sharing Decree by March
-----------------------------------------------------------
Settlements and Regional Infrastructure Minister Sunarno said
that the government plans to revoke a joint ministerial decree
on toll road revenue shared between state-run PT Jasa Marga and
PT Citra Marga Nusaphala Persada early this month, AFX reported
referring to Kompas news.
The 1989 decree allows Citra Marga to operate two toll roads in
Jakarta with a revenue-sharing arrangement of 75-25 in favor of
the company until 2023. Sunarno said the revocation of the
decree will allow the two companies to renegotiate the revenue-
sharing arrangement.
TCR-AP reported last month that Standard & Poor's (S&P) has
lowered Citra Marga's corporate credit rating to 'SD' from
double 'C' due to failure to meet on its principal debt
repayments. At the same time, S&P lowered the rating on Citra
Marga's guaranteed subsidiary, Citra Marga Finance BV's US$125
million 144A Eurobond to 'D' (default) from double 'C'.
=========
J A P A N
=========
ARABIAN OIL: Narrows 2001 Net Loss to Y5.9B
-------------------------------------------
Crude oil producer Arabian Oil Co posted a group net loss of
Y5.91 billion in 2001 against a loss of Y16.15 billion in the
previous year, Kyodo News reported Friday. The Company is
setting aside Y11.63 billion in provisions to cover potential
losses from the planned transfer of its fixed properties in
Kuwait to the Kuwait government.
According to Wright Investor's Service, as of December 2000, the
Company's long-term debt was Y15.56 billion and total
obligations were Y52.53 billion. The Company supplies oil to
Japan through the development of oil fields in the water of its
Concession area off the ex-Neutral Zone between the Kingdom of
Saudi Arabia and the State of Kuwait.
GAP JAPAN: Fitch Lowers Rating to 'BB-'; Outlook Negative
---------------------------------------------------------
Fitch Ratings on Wednesday lowered its rating of Gap, Inc.'s $2
billion of senior unsecured notes to 'BB-' from 'BB' and
assigned a 'BB-' rating to the Company's expected $1 billion
convertible note to be issued under Rule 144A. The downgrade
reflects the significant addition to the Company's debt burden,
which further weakens its credit profile as well as somewhat
weaker than anticipated year-end results. The Rating Outlook
remains Negative. Fitch as a service to users of its ratings
initiated this rating. The rating is based on public
information.
Gap Inc.'s credit profile has deteriorated considerably, due
primarily to weak sales and lower operating cash flow. For the
fiscal year ended Feb. 2, 2002, leverage (total debt plus eight
times rents to EBITDAR) weakened to approximately 5.2 times (x)
from 3.0x in the same period last year and EBITDAR coverage of
interest and rents decreased to 1.8x from 3.0x over the same
period. The pending $1 billion convertible note offering is
expected to increase the company's total debt to approximately
$3 billion, which will further weaken bondholder protection
measures from year-end levels. However, this offering, coupled
with the $1 billion in cash on hand at year-end and the
anticipated $1.3 billion secured bank facility should provide
the company with sufficient liquidity for 2002.
Weak sales coupled with a more promotional retail environment
continue to pressure the company's operating performance. For
fiscal 2001, profitability, measured by EBITDAR to sales,
weakened to 13.7 percent from 21 percent in the prior year. In
order to address its difficulties and preserve cash flow, Gap
Inc. has significantly slowed its expansion plans, cutting
capital expenditures to around $400 million in 2002 from about
$1 billion in 2001. In addition, Gap Inc. has curtailed share
repurchase activity.
Nevertheless, the Negative Rating Outlook will remain in place
until the company can demonstrate its ability to appropriately
merchandise and manage its store base, and restore positive
sales momentum. While the company's merchandising strategy has
been revised to broaden its appeal, an estimated nine-month
lead-time on new merchandise postpones the beginning of a
recovery until the second half of 2002, at the earliest.
Gap Inc., based in San Francisco, operates over 4,100 retail
stores under its Gap, Old Navy and Banana Republic divisions. Of
that total, about 2,300 were domestic Gap stores, 440 Banana
Republic, 800 Old Navy and 630 international Gap stores located
in Canada, Japan, the U.K., France, and Germany.
Contact: Michelle S. Barishaw, CFA/CPA 1-212-908-0525, Thomas P.
Razukas, CFA 1-212-908-0223, New York or Philip M. Zahn, CFA 1-
312-368-3154, Chicago.
Media Relations: James Jockle 1-212-908-0547, New York.
HITACHI LTD: Expects FY Y480B Net Loss
--------------------------------------
Electronics manufacturer Hitachi Ltd (HIT) forecasts a group
operating loss of Y155 billion (US$860.2 million) and a net loss
of Y480 billion for the year, in contrast with its October
estimate of Y30 billion operating loss and Y230 billion net
loss, Dow Jones reported Thursday. The group sales forecast was
also lowered to 7Y.8 trillion from the Y7.9 trillion previously
expected.
HIT plans to cut its group work force by 20,930, 15,100 in Japan
and 5,830 overseas, in June by offering an early retirement
program for domestic workers, and halting or reducing its
unprofitable overseas operations. The latest planned job cuts
account for 6.1 percent of its total group work force of 340,939
at the end of March last year.
HITACHI: Reorganizing Information, Telecom & Media Operations
--------------------------------------------------------------
On April 1, 2002, Hitachi, Ltd. (NYSE:HIT) will reorganize its
operations in the information & telecommunications and digital
media sectors. The move is designed to enhance Hitachi's
capabilities as a total solutions provider in today's ubiquitous
information society.
At present, Hitachi's operations in these sectors encompass five
organizations: the Information & Telecommunications Systems
Group; Solution Systems; Digital Media; Information & Network
Services; and the Net-PDA Venture Company. Hitachi will
reorganize these five organizations into three: the Information
Business Group (tentative name), the Information &
Telecommunications Group (tentative name), and the Ubiquitous
Platform Group (tentative name).
The Internet continues to find its way into the very fabric of
societies the world over, as PCs, mobile phones, PDAs and other
terminals offer ready access to online networks. Society today
is being shaped by ubiquitous access to information, with
information available to anyone, anywhere, at any time. For
Hitachi, such information provides a crucial lifeline for
society. The company recognizes the growing need for total
solutions in information systems, terminals and imaging systems
to deliver greater peace of mind, security and comfort than ever
before.
Over the years, Hitachi has gained unparalleled experience in a
broad spectrum of businesses. Its technological prowess is also
second to none. Combining these strengths, Hitachi is pursuing a
variety of initiatives as it seeks to provide ever-more advanced
solutions.
The information & telecommunications and digital media sectors
are especially critical for advancing solutions businesses in
the ubiquitous information society. It is therefore vital that
the company reinforce its presence in these sectors above and
beyond past endeavors. Enhancing its capabilities as a total
solutions provider in a wide range of areas is a key priority.
Reorganizing businesses into three groups will enable Hitachi to
exhibit its collective strengths in information systems and
network services for corporate clients, and information terminal
solutions for individual customers.
One of the new entities to emerge from the reorganization is the
Information & Telecommunications Group. Solutions will be the
main focus of its activities, including information systems that
draw on the best of Hitachi's expertise in data storage, servers
and networks, as well as network and other information services.
The Ubiquitous Platform Group will be at the heart of Hitachi's
response to the broadband era. Here, imaging systems such as
Plasma Display Panels (PDP) and LCD projectors will be linked
with PCs, mobile phones, PDAs and other terminals to provide
solutions both to consumers and service providers whose business
depends on operating centers in many locations.
Reaping the synergies of these two groups will be the
responsibility of the Information Business Group. Another goal
of this group will be to reinforce management at the
consolidated level across IT-related businesses.
Taking the helm of the Information Business Group is Mr. Isao
Ono, who currently heads the Information & Telecommunications
Systems Group and is President and CEO of Solution Systems. Mr.
Ono, who will serve concurrently as President and CEO of the new
Information & Telecommunications Group, has been closely
involved in Hitachi's measures to enhance its capabilities as a
total solutions provider, the goal of the organizational reforms
implemented on February 1, 2002. Mr. Tsugio Momose, current
President and CEO of Digital Media, will be appointed President
and CEO of the Ubiquitous Platform Group.
Hitachi, Ltd. (NYSE:HIT), headquartered in Tokyo, Japan, is one
of the world's leading global electronics companies with fiscal
2000 (ended March 31, 2001) consolidated sales of $8,417 billion
yen (67.9 billion (a)). The Company manufactures and markets a
wide range of products, including computers, semiconductors,
consumer products and power and industrial equipment. For more
information on Hitachi, Ltd., please visit Hitachi's website at
http://www.hitachi.co.jp.
Note (a): At an exchange rate of 124 yen to the dollar.
CONTACT:
Hitachi, Ltd. (Japan)
Atsushi Konno, +81-3-3258-2056
atsushi--konno@hdq.hitachi.co.jp
or
Hitachi America, Ltd. (U.S.)
Matt Takahashi, 650/244-7902
masahiro.takahashi@hal.hitachi.com
or
Hitachi Asia Ltd. (Singapore)
Yuji Hoshino, +65-231-2522
yhoshino@has.hitachi.com.sg
or
Hitachi Europe Ltd. (U.K.)
Kantaro Tanii, +44-1628-585379
kantaro.tanii@hitachi-eu.com
HITACHI LTD: Withdraws From U.S. Color Picture Tube Business
------------------------------------------------------------
Hitachi, Ltd. (NYSE:HIT) disclosed on Thursday that it is
withdrawing from the color picture tube business in the U.S. as
part of the restructuring of its Display Products Group. As a
result, Hitachi Electronic Devices (USA), Inc., Greenville, S.C.
will shift its primary product focus to projection tubes used in
projection TVs and sell its CPT production equipment to Thomson
Multimedia. The action will result in a reduction in the
Company's workforce of approximately 270 production workers and
support staff at the Greenville, S.C. plant and field locations.
Thomson will transfer the CPT production equipment to its other
manufacturing locations.
In announcing the action, Yosuke Nakanishi, President and Chief
Executive Officer of Hitachi Electronic Devices (USA) Inc.,
said, "Changes in our markets have been dramatic and have
necessitated a change in our manufacturing focus in the
Greenville plant in order to improve the outlook for our
operations. These market conditions have dictated that we
concentrate on tubes for large screen projection TVs, where we
are the world's market leader and where there is strong future
growth potential. As a result, the production of direct view
color TV tubes is being phased out."
"The action will be effective by the end of April, 2002 and the
affected employees will be given severance commensurate with
years of service and health care coverage options. We are
committed to the viability of our plant, and that means
aggressively addressing the realities of the marketplace and
seeking new opportunities to expand our business in profitable
new markets. We are equally committed to taking care of our
people as they make this difficult transition," said Mr.
Nakanishi.
The Company will be pursuing new-product opportunities that will
enhance the Company operations.
Hitachi Electronic Devices (USA) Inc., a subsidiary of Hitachi
America, Ltd., manufactures and markets electron tubes,
projection tubes, and LCD display components. The Greenville
plant was established in 1990.
Hitachi America, Ltd. markets and manufactures a broad range of
electronics, computer systems and products, consumer electronics
and semiconductors, and provides industrial equipment and
services throughout North America. For more information on
Hitachi America, visit http://www.hitachi.com.
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the
world's leading global electronics companies, with fiscal 2000
(ended March 31, 2001) consolidated sales of 8,417 billion yen
($67.9 billion (a)). The company manufactures and markets a wide
range of products, including computers, semiconductors, consumer
products and power and industrial equipment. For more
information on Hitachi, Ltd., please visit Hitachi's Web site at
http://global.hitachi.com.
Note (a): At an exchange rate of 124 yen to the dollar.
Outline of Hitachi Electronic Devices (USA), Inc.
Location: Greenville, S.C.
Capital: $141.0 million (March, 2001)
(100% owned by Hitachi America, Ltd.)
Business: Production and marketing of CPTs, projection ray
tubes and marketing of LCD panels
President & CEO: Yosuke Nakanishi
Employees: 1,000
Outline of Hitachi America, Ltd.
Location: Brisbane, Calif.
Capital: $246.0 million (March, 2001) (100% owned by Hitachi,
Ltd.)
Business: Marketing and after-sales service of electrical and
electronic equipment, and procurement of parts and materials
President: Yoshihiro Koshimizu
Employees: 6,000 (Consolidated)
CONTACT:
Hitachi Electronic Devices (USA), Inc., Greenville
Bill Davis, 864/299-2664
bill.davis@hedus.com
or
Hitachi America, Ltd., Brisbane
Gerard F. Corbett, 650/244-7900
gerard.corbett@hal.hitachi.com
Matt Takahashi, 650/244-7902
masahiro.takahashi@hal.hitachi.com
MATSUSHITA ELECTRIC: Integrates MCI Domestic Sales Units
--------------------------------------------------------
Matsushita Electric Industrial Co., Ltd. (MEI) (NYSE:MC), and
its principal subsidiary Matsushita Communication Industrial
Co., Ltd. (MCI), announced on Wednesday plans to integrate
several domestic sales subsidiaries of MCI in efforts to enhance
efficient use of management resources of factory automation (FA)
and public systems businesses.
First, effective April 1, 2002, FA equipment-use electronic
measuring instrument businesses at four of MCI's relevant sales
subsidiaries in Japan, namely Tohoku National Electronic
Measurement Co., Ltd., Chubu Panasonic Total Automation Co.,
Ltd., Osaka National Electronic Measurement Co., Ltd., and
Kyushu National Electronic Measurement Co., Ltd., will be
transferred to Metropolitan Area Panasonic FA Co., Ltd., another
Tokyo-based sales subsidiary of MCI.
Second, the public systems marketing functions of Chubu
Panasonic Total Automation Co., Ltd. and Osaka National
Electronic Measurement Co., Ltd. will be transferred to
Panasonic Engineering Co., Ltd., also an MCI subsidiary,
effective the same date.
After completion of these business transfers, the above-named
four MCI subsidiaries will be liquidated through due procedures.
Through these reorganizations, the Matsushita Group aims to
establish an efficient, integrated FA-use measuring instrument
marketing structure, while at the same time strengthening its
foundation for expansion of public systems business and related
engineering service capabilities.
1. Basic Information About the Four MCI Subsidiaries
(as of September 30, 2001)
(1) Tohoku National Electronic
Measurement Co., Ltd.
Representative Tetsuro Yoneda, Managing
Director
Location of head office Sendai, Japan
Date of incorporation March 21, 1970
Principal Business Sales of FA and measuring
equipment
Share capital 10 million yen
Number of employees 34
Total number of outstanding shares 20 thousand shares of
common stock
Shareholders' equity 443 million yen
Total assets 653 million yen
Principal customers Alpine Electronics, Inc.,
Alps Electric Co., Ltd.
Bank reference The Asahi Bank, Ltd.
(2) Chubu Panasonic Total
Automation Co., Ltd.
Representative Ikuo Yoshida, Managing
Director
Location of head office Nagoya, Japan
Date of incorporation April 21, 1965
Principal Business Sales of FA and measuring
equipment, and wireless and
office automation (OA)
products
Share capital 20 million yen
Number of employees 129
Total number of outstanding shares 40 thousand shares of
common stock
Shareholders' equity 5,907 million yen
Total assets 6,767 million yen
Principal customers Seiko Epson Corporation,
Chubu Electric Power Co.,
Inc., Aichi Prefecture
Police Department
Bank reference The Asahi Bank, Ltd.
(3) Osaka National Electronic
Measurement Co., Ltd.
Representative Hiroshi Daikoku, Managing
Director
Location of head office Osaka, Japan
Date of incorporation September 21, 1959
Principal Business Sales of FA and measuring
equipment, and wireless
and OA products
Share capital 20 million yen
Number of employees 140
Total number of outstanding shares 4 thousand shares of
common stock
Shareholders' equity 1,452 million yen
Total assets 3,340 million yen
Principle customers Wakayama Prefecture Police
Department, Hanshin
Expressway Public
Corporation, Matsushita
Electric Industrial's
Semiconductor Company
Bank reference Sumitomo Mitsui Banking
Corporation
(4) Kyushu National Electronic
Measurement Co., Ltd.
Representative Hiroshi Machida, Managing
Director
Location of head office Fukuoka, Japan
Date of incorporation June 21, 1969
Principal Business Sales of FA and measuring
equipment and OA products
Share capital 10 million yen
Number of employees 21
Total number of outstanding shares 20 thousand shares of
common stock
Shareholders' equity 144 million yen
Total assets 379 million yen
Principle customers Mitsubishi Heavy
Industries, Ltd., Kyushu
Matsushita Electric,
Kyocera Corporation
Bank reference Sumitomo Mitsui Banking
Corporation
2. Financial Results of MCI Subsidiaries
(for the most recent three fiscal years)
(1) Tohoku National Electronic Measurement Co., Ltd.
Fiscal year ended: March 1999 March 2000 March
2001
Sales 2,270 2,677 2,726
Recurring profit 10 40 36
Net income 3 19 20
Net income per common share 155 948 1,011
Dividend per common
share, basic 0 50 50
Shareholders' equity per share 22,457 23,405 24,366
(2) Chubu Panasonic Total Automation Co., Ltd.
Fiscal year ended: March 1999 March 2000 March 2001
Sales 8,417 10,045 8,762
Recurring profit 417 648 63
Net income (loss) 255 300 (3)
Net income (loss) per
common share 6,371 7,500 (85)
Dividend per common
share, basic 100 100 100
Shareholders' equity
per share 137,477 144,715 148,460
(3) Osaka National Electronic Measurement Co., Ltd.
Fiscal year ended: March 1999 March 2000 March 2001
Sales 12,765 10,785 12,854
Recurring profit 127 38 94
Net income 76 60 28
Net income per common share 18,922 15,118 6,891
Dividend per common
share, basic 1,000 750 750
Shareholders' equity
per share 374,816 388,933 436,514
(4) Kyushu National Electronic Measurement Co., Ltd.
Fiscal year ended: March 1999 March 2000 March 2001
Sales 1,121 1,073 1,301
Recurring profit 12 6 17
Net income 12 2 8
Net income per common share 626 87 384
Dividend per common share, basic 50 50 50
Shareholders' equity per share 8,489 7,899 8,777
Notes:
1. Amounts are in millions of yen, except per share amounts,
which are in yen.
2. Amounts are rounded to the nearest one million yen, except
per share amounts.
CONTACT:
Panasonic Finance (America), Inc.
Akihiro Takei, 212/698-1365
TCR-AP reported last week that Matsushita said huge losses on
mobile phones and components and a costly early retirement
program would boost its consolidated net loss this business year
to an estimated Y438 billion. In October it had forecast a Y265
billion net loss for 2001-02.
MISAWA HOMES: Eliminating 20% of Workforce
------------------------------------------
Prefabricated homebuilder Misawa Homes Co will eliminate 2,000
jobs or 20 percent of its total workforce of 10,500, as part of
its three-year reconstruction plan, Kyodo News reported Friday.
Main creditor UFJ Bank will consider infusing Y70 billion in
financial assistance to Misawa, the report said.
The Company's principal activities are the design, manufacture,
vending and construction of prefabricated 'Misawa Homes',
housing development and housing industry-related businesses
including all aspects of home care.
According to Wright Investor's Service, at the end of 2001,
Misawa Homes Co Ltd had negative working capital, as current
liabilities were Y640.20 billion while total current assets were
only Y489.34 billion.
MITSUBISHI ELECTRIC: Sees Y70B Net Loss
---------------------------------------
Mitsubishi Electric Corp will expect to post a consolidated net
loss of Y70 billion in fiscal 2001 through March, due to weak
performance of the electronic device and information equipment
division, according to Kyodo News on Friday.
TCR-AP reported last month that Mitsubishi Electric will cut
2,000 jobs at domestic factories by the end of March due to
sluggish demand for semiconductor products. The firm, which
employs a total 11,000 full-time staff and contract workers on a
consolidated basis in Japan, has total liabilities of US$27.3
billion as of March 2001 compared to total assets of US$33.1
billion.
MYCAL CORP: Creditor Claims Totaled at $US15.79B
------------------------------------------------
Creditor claims on a parent-only basis against failed retailer
Mycal Corporation totaled Y2.11 trillion ($US15.79 billion) as
of last month, Asia Pulse reported Friday, citing Company
administrator and Aeon Co President, Motoya Okada. Of the Y2.11
trillion, secured claims totaled Y630.64 billion.
The final amount on claims is still unknown because there may be
duplicate reporting and claims still to come. As part of the
Company's restructuring efforts, Mycal aims to transfer 320 of
its 1,300 workers who work at the headquarters to stores on
Friday. It plans to shut down 19 stores in April.
=========
K O R E A
=========
DAEWOO ELECTRONICS: Creditors to Make Sale Decision This Week
-------------------------------------------------------------
Creditors of Daewoo Electronics Co. (DEC) will decide this week
whether to push ahead with the sale of the Company, Korea Herald
reported Friday, quoting an unnamed creditor bank official. The
decision was made at a steering committee meeting Wednesday,
designed to brief the creditors on the bids recently submitted
by three prospective buyers.
TCR-AP reported last week that DEC creditors received three
letters of intent from foreign firms to take over the Company. A
creditors' steering committee meeting will be held Wednesday to
discuss details of the sale of the Company. The Company was
placed under a debt workout program when the parent
conglomerate, Daewoo Group collapsed in 2000.
HYUNDAI ENGINEERING: Books W809.5B Net Loss
-------------------------------------------
AFX News reported on Thursday that Hyundai Engineering &
Construction posted un-audited financial figures for the fiscal
year 2001, compared to the previous year:
Sales - W6.23 trillion versus W6.38 trillion
Operating loss - W480 billion versus profit W24.3 billion
Recurring loss - W1.21 trillion versus loss W632.5 billion
Net loss - W809.5 billion versus loss W2.98 trillion
TCR-AP reported last week that Hyundai Engineering and
Construction sees net loss of around W800 billion for the fiscal
year 2001 as it plans to write off more of its claims in Iraq.
The Company is in talks with its external auditor the size of
the claims to be written off in its financial statements for the
fiscal year 2001.
DebtTraders reports that Hyundai Engineering & Construction's
0.125% convertible bond due in 2004 (HYNE04KRN1) trades between
82 and 88. For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=HYNE04KRN1
KOOKMIN BANK: Issuing $500M Q302 Bonds
--------------------------------------
Kookmin Bank (KB) will consider issuing dollar-denominated bonds
worth $500 million in the third quarter of 2002 to help
refinance its maturing debt, Dow Jones reported Wednesday,
citing an unnamed official at the bank's international finance
team. The official said KB plans to raise a total of about $1.4
billion to $ 1.5 billion this year to refinance its maturing
debt. The bank has to pay $830 million in maturing loans and
floating rate notes (FRNs) by the end of next month.
KB aims to raise $400 million to $500 million through loans or
FRNs in the second half of 2002. The Company will sign a
contract at end-March to secure about $400 million to $500
million through a combination of one-year syndicated loans and
FRNs. It will receive funds in early April and will use them to
pay maturing overseas loans and FRNs.
SHINHAN BANK: Paying 20% Dividend
---------------------------------
Shinhan Bank will pay 20 percent dividend equivalent of its
5,000-won face value at an annual shareholders meeting
yesterday, Korea Herald reported Friday. The 20-percent dividend
will be paid out to Shinhan Financial Group, the bank's holding
company, which will in turn decided on its dividend rate March
20.
The bank's shareholders has accepted the appointment of three
new Vice Presidents, while the bank's Board supports a plan to
separate its credit card division and set up an independent
credit card Company.
TCR-AP reported Friday that the Financial Supervisory Service
(FSS) is investigating Shinhan Bank branches in Tokyo and Osaka
until March 21 because of losses worth W30 billion due to loans
it extended to former Chairman Lee Hee-gun. The agency will
focus its inspection on the size and impact the losses would
have on branch operations.
===============
M A L A Y S I A
===============
ABRAR CORPORATION: Requisite Announcement Application Pending
-------------------------------------------------------------
Abrar Corporation Berhad (Special Administrators Appointed)(the
Company) announced that it had on 23 February 2001 made an
announcement (the First Announcement) confirming that it is
deemed an Affected Listed Issuer due to the fulfillment of the
criterias as set out in paragraph 2.1 of PN 4/2001.
As an Affected Listed Issuer, the Company is required to comply
with the time schedule to regularize its financial condition in
compliance with paragraph 5.1 of PN 4/2001 and must make an
announcement to the Exchange of the Company's plan to regularize
its financial condition within six (6) months (the Requisite
Announcement) from the date of the First Announcement i.e. by 23
August 2001.
On 3 September 2001, the Exchange granted the Company an
extension of two (2) months until 22 October 2001 to make the
Requisite Announcement pursuant to the Company's application on
13 August 2001.
On 23 November 2001, the Exchange granted the Company a further
extension of two (2) months from 23 October 2001 to 22 December
2001 to enable the Company to make the Requisite Announcement
pursuant to the Company's request on 17 October 2001.
On 10 January 2002, the Special Administrators of the Company
held a briefing for interested parties with strong assets
backing and management expertise on the tender procedure for the
submission of offers/proposals on the restructuring exercise of
the Company. The interested parties were required to submit the
offers/proposals on 23 January 2002.
On 25 January 2002, the Exchange granted the Company an
extension of time from 23 December 2001 to 28 February 2002 to
enable the Company to make its Requisite Announcement pursuant
to the Company's request on 10 December 2001.
The Special Administrators of the Company are currently
reviewing the offers/proposals submitted to them by the
interested parties and thereafter will formulate a Workout
Proposal for the Company.
The new Workout Proposal will take into consideration the
interest of all stakeholders that will also deal with the
Company's plans to regularize its financial condition, its
inadequate level of operations and the minimum RM60 million
paid-up capital requirement for companies listed on the Main
Board of the Exchange.
In view of the above, the Company will not be able to make its
Requisite Announcement by 28 February 2002.
On 7 February 2002, the Company sought the approval of the
Exchange for a further extension of ten (10) months to 31
December 2002 to make the Requisite Announcement. The Exchange's
reply to the Company's request is still pending.
CHASE PERDANA: Finalizes Debt Restructuring Scheme with FI
----------------------------------------------------------
The Board of Directors of Chase Perdana Bhd (CPB), in reference
to the Company's announcement on 29 January 2002 in respect to
the Kuala Lumpur Stock Exchange (KLSE)'s approval on the
extension of time of up to 28 February 2002 to release the
Requisite Announcement (RA), announced that the Company, via
Southern Investment Bank Berhad (SIBB) had on 26 February 2002,
made an application to the KLSE for a further extension of time
of up to 30 April 2002 to release the Requisite Announcement.
The application is currently pending the KLSE's approval.
The Company is finalizing the terms of the debt-restructuring
scheme with all the financial institution (FI) creditors in
order to execute the in-principle agreement.
Upon signing and execution of the an agreement with the FI
creditors, the Company, via SIBB will make the Requisite
Announcement as required under Paragraph 5.1 (a) of PN/4 2001.
EPE POWER: Further Defaults Interest Payment
--------------------------------------------
EPE Power Corporation Berhad (the Company), subsequent to the
announcement on 25 February 2002, announced that it has further
defaulted on the payment of monthly interest of approximately
RM669,000 under its revolving credit (RC) facilities from
several financial institutions.
In addition, the Company, on 25 February 2002 and 26 February
2002, defaulted on its payment obligation to settle the
outstanding amount of the facilities (including the RC
facilities) demanded by two (2) financial institutions.
In relation to the status of its restructuring scheme, EPE has
revised the concept paper and is currently finalizing the debt
restructuring proposal before presenting it to the lenders.
JUTAJAYA HOLDING: Winds Up Unit
-------------------------------
The Board of Jutajaya Holding Berhad (Juta), further to the
announcement on 27 February 2002, informed that Norsan Fishing
Net Industries Sdn Bhd (Norsan), a wholly owned subsidiary of
Juta, is a dormant company as the proposed development in
Tebrau, Johor Bahru had been shelved. As such, there is no
operational impact to the Group as a result of the winding up
petition.
Based on the Statement of Interest claimed by Kian Hin &
Co.(Pte) Ltd, the interest charged varies from 6.4% per annum to
12.10 percent per annum. The interest charged was from 1 August
1994 to 14 December 2001.
KELANAMAS INDUSTRIES: Finalizes Proposed Scheme Negotiations
------------------------------------------------------------
Kelanamas Industries Berhad (KIB or the Company), in reference
to previous Company announcements, related:
The Master Agreement dated 9 May 2000 entered into between KIB
and Dolomite Berhad lapsed on 8 November 2001. However, both
parties have resolved that they will not further extend the
Master Agreement. The lapse was due to additional Company
liabilities, on which both parties were unable to reach an
agreement.
KIB made an application to KLSE on 9 November 2001 for an
extension of time of three (3) months from 14 November 2001 to
enable the Company to work out an alternative Scheme for the
Company. KLSE has approved an extension of three (3) months from
14 November 2001 to 13 February 2002 to enable KIB to announce
its Requisite Announcement to KLSE for public release. On 8
February 2002, KIB has made an application to KLSE for an
extension of time for another month from 13 February 2002 to
make the Requisite Announcement.
On 26 November 2001, KIB had entered into a Memorandum of
understanding (MOU) with MP Technology Resources Berhad (MPTR),
Tai Seng Plastic Industries Sdn Bhd (Tai Seng) and other
companies, in relation to a Proposed Scheme to regularize its
financial condition.
Under the Proposed Scheme, MPTR will be used as the vehicle to
assume the listing status of KIB. The Proposed Scheme, which is
subject to modifications and variations as may be deemed
necessary by the parties concerned, would include these
components and will be subject to all relevant approvals:
1. Proposed Capital Reconstruction of KIB;
2. Proposed Scheme of arrangement between MPTR and the
shareholders of KIB whereby the shareholders of KIB will be
offered MPTR shares;
3. Proposed Scheme of arrangement between MPTR and the
creditors of KIB whereby creditors of KIB will be offered MPTR
shares in satisfaction of the amount owing by KIB to the
creditors;
4. Proposed acquisition of the following companies by MPTR:
ú Tai Seng Plastic Industries Sdn Bhd (Tai Seng)
ú Eng Zan Machinery & Trading Sdn Bhd (Eng Zan)
ú Hightlight Plastic Machinery Sdn Bhd (HL)
ú VCM Precision Sdn Bhd (VCM)
ú Tralvest (M) Sdn Bhd (Tralvest)
ú HIM Marketing Sdn Bhd (HIM)
ú Hearngrange Packaging Industries Sdn Bhd (HG)
ú MP Recycle Products Sdn Bhd (MP Recycle)
5. Proposed transfer of listing status of KIB to MPTR.
Currently, both parties are in the midst of negotiations in
order to finalize and execute all agreements in respect to the
Proposed Scheme.
MGR CORPORATION: SAs Seek Regularization Plan Time Extension
------------------------------------------------------------
Mgr Corporation Berhad announced that the Kuala Lumpur Stock
Exchange (Exchange), on 1st November 2001, approved the
Company's application for an extension of time from 21st
November 2001 to 28th February 2002 to enable the Company to
obtain all the necessary approvals from the regulatory
authorities for its regularization plan.
However, the previous proposed corporate restructuring scheme,
as announced on 21st September 2001, through the Company's
adviser, Commerce International Merchant Bankers Berhad, was
suspended with the appointment of Special Administrators (SAs)
to the Company on 11th October 2001.
Subsequently, the SAs invited interested parties to submit
proposals involving the acquisition of certain assets of the
Company, including its listing status. Five (5) proposals were
received by the SAs on 9th November 2001. However, the SAs were
unable to successfully conclude negotiations with the initial
favored party. Consequently, invitations were extended to the
other four (4) interested parties to re-submit an improved
proposal. The SAs are still in the midst of finalizing the
evaluation of the proposals re-submitted by the four (4)
interested parties.
In view of the above, the SAs had on 27th February 2002 applied,
on behalf of the Company, to the Exchange for an extension of
time, from 1st March 2002 to 1st June 2002, to submit its plan
to regularize the financial condition of the Company to the
regulatory authorities.
A further announcement will be made upon successful negotiation
and confirmation of the terms of the proposal.
PAN PACIFIC: SC Gives Time Extension to Rebuild Core Business
-------------------------------------------------------------
Alliance Merchant Bank Berhad, announced, on behalf of Pan
Pacific Asia Berhad (PPAB or Company), that the Securities
Commission (SC) had, via their letter dated 26 February 2002,
approved the application by PPAB for an extension of time until
30 September 2002 to rebuild its core business.
PPAB had proposed to utilize the proceeds arising from the
disposal of Peninsula Securities Sdn Bhd by PPAB to K&N Kenanga
Berhad (Disposal) to rebuild the Company's core business within
six (6) months from the date of the implementation of the
Disposal. The Disposal was completed on 30 August 2001.
SATERAS RESOURCES: Unit Faces Winding Up Petition
-------------------------------------------------
Sateras Resources (Malaysia) Berhad (the Company) announced that
a winding-up petition had been presented at the Kuala Lumpur
High Court on 2 January 2002 against New Decade Holdings Sdn Bhd
(NDH), a wholly-owned sub-subsidiary of the Company, and served
to NDH on 6 February 2002 for a claim of RM1,375,610.03
Details of default or circumstances leading to the filing of the
winding-up petition against NDH
A terminated contractor, Sri Lanjutan (M) Sdn Bhd (SLSB) filed
the petition against NDH. SLSB was appointed as the contractor
for a development project known as "Proposed Housing Development
on Lots 71,72,78-80, 5603 and 5604, Mukim of Senai, Kulai,
Daerah Johor Bahru, Negeri Johor Darul Takzim." SLSB alleged
that a sum of RM1,375,610.03 is owing by NDH of which NDH denies
is due and owing and genuinely disputes the claim.
Financial and operational impact on the Group
There is no further impact to the Company or the Group as full
provision has been made; the actual amount, which is disputable,
has yet to be determined until the completion of the development
project.
Expected losses
NDH is expected to incur legal fees of approximately RM55,000.00
Amount of interest claimed: Nil
Date of hearing of the winding-up petition: 28 March 2002.
Steps taken and proposed to be taken in respect of the winding-
up petition:
i. NDH has filed an injunction against the Notice pursuant to
Section 218 of the Companies Act,1965 by SLSB and the hearing
date has been fixed on 4 March 2002;
ii. NDH will file an application to strike out the winding-up
petition; and
iii. NDH will file a suit to counterclaim against SLSB.
SISTEM TELEVISYEN: Creditors OK Proposed Scheme of Arrangement
--------------------------------------------------------------
On behalf of the Board of Directors of Sistem Televisyen
Malaysia Berhad (TV3 or Company), Arab-Malaysian Merchant Bank
Berhad announced that the proposed scheme of arrangement
pursuant to Section 176 of the Companies Act, 1965 (Proposed
Scheme of Arrangement) between TV3, scheme creditors of TV3 (TV3
Scheme Creditors), scheme members of TV3, Profitune Berhad
(Newco) and Malaysian Resources Corporation Berhad has been
approved by TV3 Scheme Creditors at a court convened meeting
held on Thursday, 28 February 2002.
The approval was obtained from 96.7% of the TV3 Scheme Creditors
present and voting either in person or by proxy, representing
99.9% in value of the TV3 Scheme Creditors, subject to final
certification by the independent scrutineer for the meeting.
As such, the Company has obtained the requisite approval from
the TV3 Scheme Creditors as required by Section 176 of the
Companies Act, 1965.
The proposed scheme of arrangement remains subject, inter-alia,
to the approvals of, the relevant authorities, the shareholders
of TV3 and the High Court of Malaya (Court).
TV3 will submit a petition to the Court for sanction of the
Proposed Scheme of Arrangement once all the relevant approvals
have been obtained.
SRI HARTAMAS: Special Administrators Released from Appointment
--------------------------------------------------------------
The Special Administrators of Sri Hartamas Berhad (SHB) hereby
give notice that the Workout Proposal of Sri Hartamas Hotels Sdn
Bhd (Company No.: 14938 - W) (the Unit) as approved in
accordance with the Pengurusan Danaharta Nasional Berhad Act
1998 (Danaharta Act) has been implemented.
Pursuant to section 28(2) of the Danaharta Act, the Oversight
Committee, on the recommendation of Pengurusan Danaharta
Nasional Berhad, has approved the release and discharge of the
Special Administrators of the Unit with effect from 19 February
2002.
In view of the above, notice is hereby given that the Special
Administrators of the Unit have been released from their
appointment and discharged of all duties and liabilities with
effect from 19 February 2002. The moratorium in respect to the
Unit is terminated, with effect from 19 February 2002.
TAJO BHD: In the Midst of Talks With Potential White Knights
------------------------------------------------------------
Public Merchant Bank Berhad (PMBB), on behalf of the Board of
Tajo Berhad (Tajo or the Company), advised that the Company is
still in the process of evaluating and negotiating with its
potential "white knights", which forms an integral part of its
regularization plans. In view of that, PMBB informed that the
Company is unable to make the revised Requisite Announcement by
28 February 2002.
Background
On 10 October 2001, PMBB on behalf of the Board of Directors of
Tajo (Board), announced that an application for an extension of
time pursuant to Paragraph 5.1(c) of PN4 had been made to the
KLSE.
The KLSE, via its letter dated 1 November 2001, granted its
approval for a further extension of time from 11 October 2001 to
28 February 2002 to enable Tajo to:
1. Revise its regularization plan;
2. Make a revised Requisite Announcement to the KLSE; and
3. Submit its revised plan to the regulatory authorities for
approval.
WING TIEK: Awaits KLSE's RA Time Extension Application Reply
------------------------------------------------------------
Wing Tiek Holdings Berhad (WTHB or the Company), further to the
announcement made on 25 October 2001 and 26 November 2001, is
required to make its Requisite Announcement to the Kuala Lumpur
Stock Exchange of its plan to regularize its financial condition
by 28 February 2002.
Its Major Creditor advised WTHB that it would be desirable for
WTHB and the identified White Knight to work on a restructuring
plan, which would provide a "total solution" for the Wing Tiek
Group of Companies. The "total solution" requirement by the
Major Creditor has resulted in the need for further negotiations
between WTHB and the identified White Knight.
In view thereof, WTHB, on 15 February 2002, submitted an
application to the Exchange for a further extension of time to
make the Requisite Announcement (RA) and this is now pending
approval from the Exchange.
=====================
P H I L I P P I N E S
=====================
NATIONAL POWER: Konsortium Logistik Eyes Transmission Assets
------------------------------------------------------------
Malaysian power firm, Konsortium Logistik Bhd, shows interest in
bidding for the transmission assets of National Power
Corporation (Napocor), Today newspaper and AFX News reported
Thursday, quoting National Transmission Co President Asisclo
Gonzaga. According to Gonzaga, the consortium's Executive
Chairman Mirzan Mahathir visited the country recently,
accompanied by representatives of Tenaga Nasional Bhd.
He emphasized that the Malaysians are looking for local partners
because Philippine law only allows 40 percent foreign ownership
of Napocor's assets.
DebtTraders reports that National Power Corporation's 9.750%
bond due in 2009 (NATP09PHN1) trades between 97.826 and 99.548.
For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=NATP09PHN1
PILIPINO TELEPHONE: Becomes Independent From Parent PLDT
--------------------------------------------------------
Pilipino Telephone Company will be independent of its parent
Philippine Long Distance Telephone Corporation (PLDT),
DebtTraders analysts, Daniel Fan (852-2537-4111) and Blythe
Berselli (1-212-247-5300) reported, citing Business World
newspaper. Piltel is unlikely to receive further investment from
its parent after it showed positive EBITDA in January. Piltel's
Talk N' Text is the third largest GSM network with a 13 percent
market share in the country. It aims to be EBITDA positive this
year.
Pilipino Telephone Co's 4.980% floating rate note due in 2016
(PLTL15PHS1) trades between 23.5 and 26. For real-time bond
pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=PLTL15PHS1
TCR-AP reported Friday that Company posted its 2001 net loss of
P6.6 billion ($129 million), mainly due to significant marketing
expenses in support of Talk N Text's growth, its GSM brand.
Extraordinary expenses of P1,177 billion ($23 million) include
debt restructuring costs, write-down of a CDMA network and
various computer software packages and paying network assets.
=================
S I N G A P O R E
=================
NOBEL DESIGN: Widens 2001 Loss to 5.4M
--------------------------------------
Nobel Design Holdings posted a loss of $5.4 million in 2001
versus $2.1 million in 2000, Business Times reported on Friday.
Turnover dropped 23 percent to $41 million. Losses per share
advanced to 4.92 cents from 1.93 cents last year. Net tangible
assets per share declined 5.01 cents, or 28 per cent, to 12.61
cents. No dividend was declared.
A Company press release revealed on February 2001 that Nobel
Design's Internet businesses namely buylateral.com Pte Ltd and
home2be.com Pte Ltd are likely to incur losses during the second
half-year. The losses in the Internet businesses were mainly due
to lower-than-expected revenues and expenditures required for
market development, branding and infrastructure set-up costs.
This will adversely impact the performance of the Group for the
full year.
PRESSCRETE HOLDINGS: In Liability Settlement Talks W/ Supplier
--------------------------------------------------------------
Presscrete Holdings Ltd (the Company) announced on Thursday that
it is presently negotiating with the equipment supplier of
Ceramic Technologies Pte Ltd (CT) for the final settlement of
the Company's liability under the corporate guarantee given by
the Company in favor of the equipment supplier to secure certain
of CT's liabilities.
In tandem with this development, the Company is also in
discussion with a potential investor for an injection of
business, assets and cash into the Company. To-date the Group's
bankers (excluding CT's) have not demanded repayment of the
Group exists loans at short notice. The Company will make prompt
disclosure as and when there are further developments.
===============
T H A I L A N D
===============
ASIA IRON: Business Reorg Petition Filed in Bankruptcy Court
------------------------------------------------------------
Asia Iron Manufacturing Company Limited (DEBTOR), engaged in
manufacturing of iron line, files it Petition for Business
Reorganization was filed in the Central Bankruptcy Court:
Black Case Number 718/2544
Red Case Number 700/2544
Petitioner: ASIA BANK PUBLIC COMPANY LIMITED BY MR. SOMSUK
WRORAWIJAK, THE AUTHORIZED PERSON
Planner: MISS VEERAPA ROJJANAPIYAWONG
Debts Owed to the Petitioning Creditor: Bt1,172075,234.66
Date of Court Acceptance of the Petition: July 27, 2001
Date of Examining the Petition: August 27, 2001 at 9.00 A.M.
Court Order for Business Reorganization and Appointment of
Planner: August 27, 2001
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Matichon Public Company Limited
and Siam Rath Company Limited: September 6, 2001
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Government Gazette: October 2,
2001
Deadline for the Planner to submit the Reorganization Plan to
the Official Receiver: January 2, 2002
Planner postponed the Date to submit the Business Reorganization
Plan to Official Receiver #1st: February 2, 2002
Contact: Mr. Chat Tel, 6792525 ext. 124
GENERAL ENGINEERING: Discloses Recently Passed Resolutions
----------------------------------------------------------
The Board of Directors of General Engineering Public Company
Limited at a meeting # 1/2002 held on February 28, 2002 passed
these resolutions:
1. That the meeting will approve the Company's balance sheet,
profit and loss statements, as at December 31, 2001.
2. That the Company will omit a dividend payment and the
directors' remuneration for the operation from January 1 to
December 31, 2001 because of the Company operation loss.
3. That an ordinary General meeting of shareholders # 1/2002
should be held on April 25, 2002 from 9.30 a.m. at Eastin Lake
side Hotel 50/452 Moo 6, Changwatana Road, Banmai, Pakkred,
Nonthaburi.
4. That the date for closing the Company share register for the
right to attend the meeting will be on April 4 at 12.00 p.m.
until April 25, 2002.
5. That the meeting will appoint these persons from SGV-NA
THALANG CO.,LTD. as auditors for 2002:
1. Mr. Vichien Thumtrakul
2. Mr. Winid Silamongkol
3. Miss Kalyarat Chaivorapongsa
6. That Mr. Srettha Thavisin be appointed an independent Company
director and on the audit committee.
7. That the closure of Loxley Infra Company Limited, our
associated company, 40 percent owned by the Company. Loxley
Infra was set up to support the Independent Power Producer (IPP)
project. Nowadays, the economic situation was not suitable for
such project. Therefore, the Company has to discontinue the
project.
L.P.N. DEVELOPMENT: Dividend Payment Suspended
----------------------------------------------
L.P.N. Development Public Company Limited informed that the
Board of Directors Meeting's resolution No1/2002 on 27th
February 2002:
1. The Company will hold the Ordinary General Meeting of
Shareholders No 1/2002 On Thursday 25 April 2002 at 14.00 hrs.
at the Company's office No 1168/109 36 floor, Lumpini Tower
Building, Rama IV Road with this agenda:
Agenda 1 To consider adoption the Minutes of the Ordinary
General Meeting of Shareholders No 1/2001.
Agenda 2 Boards of Directors report the Company's 2001
annual operations.
Agenda 3 To consider approval the balance sheets and profit
and loss accounts for the years ended 31st December 2001.
Agenda 4 To consider approval the profit allocations and
paid out of dividends.
Agenda 5 To consider electing directors to replace those
whose directorship had expired and designating director's
remuneration.
Agenda 6 To consider appointing auditors and designating
their remunerations.
Agenda 7 Other matters (if any)
2. The meeting resolved not to pay dividend for the company's
operations for the 12-month period of 1 January to 31 December
2001, and the date for closing the Shareholder Book was
designated at 12.00 hrs. On Friday 5 April 2002 until the
meeting ended.
SINO-THAI RESOURCES: Appoints New Financial Consultant
------------------------------------------------------
Sino-Thai Resources Development Public Company Limited (the
Company), in regards to its appointment of Yuanta Securities
(Thailand) Company Limited (Yuanta) as the financial consultant
according to the Company's Rehabilitation Plan, announced that
the Executive Board Meeting No. 2/2002 has a resolution to
appoint Phillip Securities (Thailand) Public Company Limited as
the financial consultant according to the Company's
Rehabilitation Plan in compliance with the Stock Exchange of
Thailand requirements to refrain from the ground of delisting.
Due to Kim Eng Securities (Thailand) Limited (Kim Eng) merger
with Yuanta on January 2, 2000, Yuanta had transferred its
assets to Kim Eng, and its financial consultant responsibilities
was suspended as Securities and Exchange Commission's
declaration. The Consultant Agreement between the Company and
Yuanta was terminated on February 22, 2002.
The Company will submit the above-mentioned matter to Board of
Directors and Shareholder Meeting for their consideration.
TPI POLENE: Creditors Hold Key to US$375M Deal
----------------------------------------------
The US$375-million binding deal between the ailing TPI Polene
Public Company Limited and Siam City Cement Public Company
Limited (SCCC) will immediately return to square one if the
proposal fails to win the approval of creditors holding at least
95 percent of TPI Polene's debt, Bangkok Post reports.
"We're committed to all the requirements of creditors, who had
earlier asked TPI Polene to conclude negotiations with potential
strategic investors by Feb 25," Prachai Leophairatana, the
Founder and Administrator of TPI Polene's restructuring plan,
said.
Earlier, SCCC agreed to buy a majority stake in TPI Polene for
US$375 million. The deal will be submitted to creditors within
90 days. Under the terms of the share subscription deal, SCCC
would subscribe to US$375 million of the new shares through
private placement. A total of 1.7 billion new shares would be
allocated to SCCC and its designees, representing a 77 percent
stake. Of the total proceeds, US$180 million would be used to
buy back debt from creditors on a voluntary basis, and the
remaining US$195 million is slated to repay debts.
Mr Prachai said that the deal has no buy-back conditions, but he
is committed to buying back the stake through the stock market
when the time is right.
"Because of the huge debt, TPI Polene is now like a fallen
angel. It will return to heaven when the debt is restructured,"
Mr Prachai said.
TPI POLENE: Ups 2001 Consolidated Revenue to Bt22,551M
------------------------------------------------------
TPI Polene Public Company Limited (the Company) submitted to the
Stock Exchange of Thailand (SET) the financial statements and
consolidated financial statements of the Company for the year
ended December 31, 2001 with a summary of the Company's
operational performance:
Total consolidated revenue for the year 2001 is Bt22,551
million. This has increased substantially by Bt8,241 million or
57.59 percent compared to the revenue of Bt14,310 million for
the year 2000
The Company earned a net profit of Bt4,590 million in 2001 as
compared to net loss of Bt5,717 million in 2000, a substantial
increase of Bt10,307 million. The significant increase of
180.29 percent was mainly due to an increase in total revenue as
mentioned above including the decline in expenses resulting from
a reduction in both production cost per unit and financial cost.
In addition, the Company recognized gain from the disposal of an
investment in Thai Caprolactam Pcl., its associated company and
recorded a substantial reduction in loss on foreign exchanges in
2001 as compared to that in the previous year.
The Company's consolidated financial statement recorded earning
per share of Bt9.04 in 2001 as compared to net loss of Bt11.27
in 2000. The book value per share was Bt34.06 in 2001 as
compared to Bt33.30 in 2000.
DebtTraders reports that TPI Polene's 2.750% convertible bonds
due on 2006 (TPIP06THS1) are trading between 56 and 60. Go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=TPIP06THS1
for real-time bond pricing information.
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
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Copyright 2002. All rights reserved. ISSN: 1520-9482.
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