/raid1/www/Hosts/bankrupt/TCRAP_Public/020313.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, March 13, 2002, Vol. 5, No. 51
Headlines
A U S T R A L I A
ANACONDA NICKEL: Settles JV Dispute With Cobra
AUSTAR UNITED: Signs Game Service Agreement With Two Way
BRIDGE INFO: Settles AP Units' Inter-Company Balances
E*TRADE AUSTRALIA: Former Securities Representative Banned
HOTHAM WINES: Releases Chairman Brown's Half-Yearly Report
IOCOM LIMITED: Shareholders Meeting Scheduled For March 14
MAXIS CORPORATION: Issues Shares to Raise Working Capital
SAGE GLOBAL: Receiver Removed, Assets Freezing Order Lifted
C H I N A & H O N G K O N G
CHARTER PACKAGING: Winding Up Petition Hearing Set
DICKEY LIMITED: Petition to Wind Up Pending
EMEX INVESTMENT: Faces Winding Up Petition
FORD ART: Winding Up Petition Hearing Scheduled
FUJIAN INTERNATIONAL: Liquidating Assets to Repay Bondholders
INDUSTRIAL INVESTMENT: Winding Up Petition Hearing Slated
ILINK HOLDINGS: Widens 2001 Loss to HK$34.9M
SMARTONE TELECOM: Narrows Operations Loss to HK$43,885
WAH LEE: Sees No Reason for Volume Shares Increase
I N D O N E S I A
ASIA PULP: Units' Losses Reaches US$290M
J A P A N
DAIKYO INC: Considers Possible Restructuring
SNOW BRAND: Union Takes Employee Dismissal Case to Court
* Moody's Downgrades Eight Japanese Life Insurers
* R&I Reviews Rating of Non-Life Insurance Firms
K O R E A
DAEWOO ELECTRONICS: Creditors Opt to Keep Firm Afloat
DAEWOO SECURITIES: WFH Drops Plan to Buy Stakes
DAEWOO MOTOR: Tata Engineering May Acquire Poland Subsidiary
HYNIX SEMICON: Sale Talks With Micron Ongoing
HYNIX SEMICONDUCTOR: Cancels Sale Agreement With Cando Corp
MEDISON CO: CDC Approves Court Receivership
M A L A Y S I A
AMSTEEL CORPORATION: Obtains KLSE's Time Extension Approval
BRIDGECON HOLDINGS: KLSE Grants Announcement Extension
ESPRIT GROUP: Unit Faces Winding Up Petition Filed by WESD
GLOBAL CARRIERS: AMFB to Hold More Than 33% of Shares
HAI MING: Proposed Disposal Resolution Passed at EGM
MAY PLASTICS: No Real Change in Defaulted Payment Status
PANTAI HOLDINGS: Petition Hearing Date Not Yet Fixed
PSC INDUSTRIES: Court Hearing Schedule Postponed to March 14
S P SETIA: Unit Enters Facility Agreement With Lender
SOUTHERN STEEL: Restructuring US$125M Term Loan Facility
TRANS CAPITAL: KLSE OKS Regularization Plan Time Extension
P H I L I P P I N E S
PHILIPPINE AIRLINES: Five Govt Agencies to Exercise Put Option
S I N G A P O R E
PRESSCRETE HOLDINGS: Posts Notice of Shareholder's Interest
WEE POH: CEO Tang Lee Woon Resigns
T H A I L A N D
GREEN UNION: Files Business Reorganization Petition
ITALIAN-THAI: Posts Add'l Reasons for Foreign Exchange Losses
PREECHA GROUP: Omits Dividend Payment, Schedules GM
PTT PUBLIC: Clarifies Dispute With IPCO
TPI POLENE: Creditors' Support Likely, Says DebtTraders
* SET Transfers Companies Under Rehabilitation Category
- - - - - - - -
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A U S T R A L I A
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ANACONDA NICKEL: Settles JV Dispute With Cobra
----------------------------------------------
Mineral explorer Cobra Resources Ltd (CBO) announced Tuesday
that its wholly owned subsidiary, Cobra Exploration Ltd, and
Anaconda Nickel Ltd agreed to terminate the Heads of
Agreement between the parties prior to its previously proposed
spin-off of Cobra's West Musgrave exploration tenements
through its wholly owned subsidiary, Musgrave Minerals Limited.
Under a Deed of Settlement & Release, the parties have:
* agreed the Heads of Agreement is deemed to have been
terminated as of 8 June 2001, and
* released each other and all related parties in respect of
any rights or obligations under the Heads of Agreement.
In addition, Anaconda has agreed:
* to surrender its interest in lateritic nickel projects in
Papua New Guinea in favor of Cobra Exploration, and
* that it has no interests in any of Cobra's tenements.
Cobra's Chairman, Mr Laurie Ziatas, said: "This agreement allows
Cobra to look forward to a particularly exciting year ahead in
2002, with plans well advanced to undertake a demerger of our
West Musgrave assets to unlock their significant potential," he
added.
In January, the BCO confirmed plans to spin off its West
Musgrave exploration projects into a new dedicated exploration
company by utilizing an innovative mechanism involving an
exclusive Initial Public Offering (IPO) to existing shareholders
for a fixed low entry price.
The IPO will give each of Cobra's existing 3,000 shareholders
the opportunity to take up shares in the new company for a fixed
entry price of $2,000, potentially raising up to $6 million in
fresh equity funding. For this, each shareholder will receive:
* 10,000 fully paid ordinary shares in Musgrave Minerals at a
nominal issue price of 20 cents per share; plus
* a bonus issue of shares to shareholders of one free share
in Musgrave Minerals for every four Cobra shares held by them on
the record date.
This spin-off mechanism could also raise capital for the parent
company, enabling it to pursue its nickel and Marlborough
chrysoprase projects.
AUSTAR UNITED: Signs Game Service Agreement With Two Way
--------------------------------------------------------
Austar United Communications Limited (AUSTAR) announced Tuesday
that it has signed a five-year agreement with interactive games
provider, Two Way TV Australia to expand its games content. The
deal will create the introduction of Leaderboards (top 200
players) and the ability for players to compete against other
viewers to win prizes.
The first phase of the expanded service will be similar to the
existing Two Way TV games offered on AUSTAR. Viewers will have
the choice of three games where they may play for free or may
choose to submit their score to the Leaderboard via a phone line
connected to their AUSTAR decoder box. The Leaderboard for each
game will be updated hourly and will display the top 200 scores
received for the game.
During 2002, the service will be expanded to five games and will
introduce the ability for viewers to win prizes. Viewers will
utilize a phone line connected to their AUSTAR decoder box to
dial up and send their scores. Cash prizes will be awarded on a
weekly basis.
Two Way TV has provided interactive games to AUSTAR since the
launch of its iTV service in November 2000. The games are
targeted at a mature audience and focus on games such as Trivia,
Quiz and Puzzle games, which require skill to play and are
attractive to adults.
Veronica Chalom, General Manager of AUSTAR iTV said, "Games have
proven to be the most popular interactive service since
launching iTV last year."
"Due to customer demand the very popular game, `String Em In,'
will be reloaded as part of AUSTAR's TV Basic Service in April
this year. We are very excited about the deal with Two Way TV
that will provide our customers with the opportunity to
participate in Leaderboards, and potentially win prizes. We hope
that this addition will make AUSTARs interactive games more
popular with our customers," Ms Chalom concluded.
In order to meet social responsibility, AUSTAR will provide
means whereby adults in a household are able to prevent or allow
access by minors to games with prizes.
AUSTAR was the first pay TV company in Australia to commence
interactive broadcasting on a commercial basis and now boasts a
range of interactive offerings including an EPG, games, T-
mail(TM), i-Daily news service and several enhancements accessed
from channels such as Nickelodeon, Channel V, The Weather
Channel and The Lifestyle Channel.
Two Way TV Australia has an exclusive license for interactive
games and sports from Two Way TV UK, the company that holds the
valuable Premier League Soccer contract for BskyB.
In the UK, Two Way TV is one of the most successful games
companies, offering games services on the NTL, OnDigital and
TeleWest cable services. On the NTL service, where other games
services also operate, the Two Way TV games have achieved up to
half of all of the interactive traffic offered on the network
e-mail and home shopping included.
In announcing the deal, Jim McKay, Managing Director of Two Way
TV Australia, said: "We are very proud that AUSTAR have decided
to go with our service. We feel it shows the appeal of our games
and of our ability to provide a commercially viable service.
AUSTAR has certainly had the runs on the board in terms of
interactive experience and we look forward to continuing the
excellent relationship we have built with them.
"Globally, games are generally ranked first or second in terms
of interactive play rates and we fully expect this first two way
service to maintain that status on AUSTAR."
Last month, TCR-AP reported that AUSTAR had reached an `in
principle' agreement with its banking syndicate to restructure
its $400 million bank facility. The Agreement is conditional on
finalization of necessary documentation.
BRIDGE INFO: Settles AP Units' Intercompany Balances
-----------------------------------------------------
Bridge Information Systems, Inc., and its debtor-affiliates are
seeking Court authority to settle certain intercompany balances
owing by certain foreign affiliates located in the Asia Pacific
region.
David M. Unseth, Esq., at Bryan Cave, in St. Louis, Missouri,
relates that the businesses and assets of its Asia Pacific
affiliates have been sold to either Reuters or Moneyline.
"In order to finalize the wind-down of each of the Asia Pacific
affiliates, the Debtors intend to liquidate each of the Asia
Pacific Affiliates," Mr. Unseth explains. Mr. Unseth notes
that if the Asia Pacific affiliates are solvent at the time of
their respective liquidations, they may proceed with solvent
liquidation procedures. However, if the Asia Pacific affiliates
are deemed insolvent at the time of their liquidation, they will
be required to engage in insolvency proceedings. "Insolven[cy]
proceedings are lengthier and costlier than solvent liquidation
procedures," Mr. Unseth adds.
Mr. Unseth reports that there currently exist unpaid
intercompany balances owing by each of the Asia Pacific
affiliates to:
(i) one or more other Asia Pacific affiliates;
(ii) one or more other foreign affiliates of the Debtors; and
(iii) one or more of the Debtors.
"The current status of the Intercompany Balances makes each of
the Asia Pacific affiliates insolvent," Mr. Unseth advises.
Mr. Unseth tells the Court that PricewaterhouseCoopers was asked
by the Debtors to review the ability of the Asia Pacific
affiliates to proceed with solvent liquidation procedures.
Accordingly, PricewaterhouseCoopers advised the Debtors to
implement certain settlements.
Mr. Unseth outlines the proposed settlements:
1. Bridge Information Systems Australia Pty. Ltd.
Bridge Information Systems Australia Pty. Ltd. owes BIS
America Administration, Inc. approximately $2,100,000
the payable of which will be forgiven by BIS America
Administration, Inc.
2. Telerate Australia Pty. Ltd.
Telerate Australia Pty. Ltd. owes BIS America
Administration, Inc. approximately $5,800,000 the
payable of which BIS America Administration, Inc.
is being asked to forgive.
Telerate Australia Pty. Ltd. owes TLR Administration,
Inc. approximately $350,000, the payable of which
TLR Administration, Inc. is being asked to forgive.
3. Telerate Hong Kong Ltd.
Telerate Hong Kong Ltd. owes TI Administration, Inc.
approximately $10,600,000. It is proposed that
the payable be converted into Telerate Hong Kong Ltd.
equity.
Telerate Hong Kong Ltd. owes TLR Administration, Inc.
approximately $2,100,000. It is proposed that the
payable be converted into Telerated Hong Kong Ltd.
equity.
4. Telerate Asia Pacific (Hong Kong) Ltd.
Telerate Asia Pacific (Hong Kong) Ltd. owes BIS
Administration, Inc. approximately $16,500,000. It is
proposed that the payable be converted into
Telerate Asia Pacific equity.
Telerate Asia Pacific (Hong Kong) Ltd. owes TI
Administration, Inc. approximately $18,000,000. It is
proposed that the payable be converted into
Telerate Asia Pacific (Hong Kong) equity.
5. Bridge Information Systems (Singapore) Pte Ltd.
Bridge Information Systems (Singapore) Pte Ltd. owed BIS
Administration, Inc. approximately $4,000,000. It is
proposed that the payable be converted into
Bridge Information Systems (Singapore) equity.
6. Telerate Singapore Pte Ltd.
Telerate Singapore Pte Ltd. owes TI Administration, Inc.
approximately $8,500,000. It is proposed that the
payable be converted into Telerate Singapore equity.
Telerate Singapore Pte Ltd. owes TLR Administration,
Inc. approximately $1,200,000. It has been proposed
that the payable be converted into Telerate Singapore
equity.
7. Telerate Malaysia Sdn. Bhd.
Telerate Malaysia Sdn. Bhd. owes TI Administration, Inc.
approximately $250,000. It is proposed that the payable
be converted into Telerate Malaysia Sdn. Bhd. equity.
8. Bridge Japan Inc.
Bridge Japan Inc. owes BIS Administration, Inc.
approximately $3,700,000, of which the payable is
proposed to be forgiven by BIS Administration, Inc.
Bridge Japan Inc. owes BIS America Administration, Inc.
approximately $220,000, of which payable is proposed to
be forgiven by BIS America Administration, Inc.
9. Telerate Japan Inc.
Telerate Japan Inc. owes BIS Administration, Inc.
approximately $8,150,000, of which the payable is
proposed to be forgiven by BIS Administration, Inc.
10. Bridge Information Systems Singapore Pte Ltd. (Vietnam
Representative Office)
Bridge Information Systems Singapore Pte Ltd. (Vietnam
Regional Office) owes BIS America Administration, Inc.
approximately $10,000, of which the payable is proposed
to be forgiven by BIS America Administration, Inc.
11. Telerate Asia Pacific Singapore Pte Ltd. (Vietnam
Representative Office)
Telerate Asia Pacific Singapore Pte Ltd. (Vietnam
Representative Office) owes TLR Administration, Inc.
approximately $10,000, of which the payable is proposed
to be forgiven by TLR Administration, Inc.
12. Telerate Asia Pacific Singapore Pte Ltd. (India Branch)
Telerate Asia Pacific Singapore Pte Ltd. (India Branch)
owes TLR Administration, Inc. approximately $170,000,
of which the payable is proposed to be forgiven by TLR
Administration, Inc.
Mr. Unseth explains that because the Intercompany Settlements
contemplate either the capitalization or the forgiveness of the
Intercompany Balances, implementation would constitute a
settlement by and among the Asia Pacific affiliates and the
Debtors. "The Pre-Petition Lenders have reviewed the
Intercompany Settlements and support its approval by the
Court,"Mr. Unseth adds.
The Debtors are asking the Court to authorize them to
implement the proposed Intercompany Settlements. (Bridge
Bankruptcy News, Issue No. 27; Bankruptcy Creditors' Service,
Inc., 609-392-0900)
E*TRADE AUSTRALIA: Former Securities Representative Banned
----------------------------------------------------------
The Australian Securities and Investments Commission (ASIC) has
banned former E*Trade securities representative, Rory Peter
Langman, from acting as a representative of a dealer or an
investment adviser for one year.
This action follows an ASIC investigation that found that Mr
Langman created a misleading appearance with respect to the
price for E*Trade Australia Limited shares. It also found that
he failed to act honestly, efficiently and fairly as a
representative of a dealer.
The ban relates to orders placed with Mr Langman between 6 and
23 February 2001. ASIC considers that between 6 and 16 February
2001 Mr Langman executed orders with the Australian Stock
Exchange to buy E*Trade Australia Limited shares at or near the
close of trading. Mr Langman bought orders above the market
price of previous trades, meeting the prices offered by the
sellers, prior to the close of normal trade so that his orders
would be the final trade of the day.
ASIC believed that Mr Langman failed to act efficiently,
honestly and fairly as a representative of a dealer, in respect
to the above orders as well as in the manner in which he
recorded orders placed on 6, 20 and 23 February 2001.
"Trading representatives must independently assess orders before
they are placed to ensure the integrity of the market," ASIC's
Director Enforcement, Allen Turton said.
Mr Langman has a right of appeal to the Administrative Appeals
Tribunal in relation to ASIC's decision.
HOTHAM WINES: Releases Chairman Brown's Half-Yearly Report
----------------------------------------------------------
Hotham Wines Limited posted Chairman R Brown's report to the
shareholders:
REVIEW OF OPERATIONS
The Company experienced a most difficult first half of the 2002
fiscal year a result of ambitious sales targets and the failure
to secure reliable export contracts. The situation was
compounded by the Company's need to focus on the restructuring
of the business (including increasing equity capital and
reducing the level of borrowings).
During the six months to 31 December 2001, the Company
dispatched 5,000 cases of wine compared to 6,300 cases in the
corresponding six month period. Domestic sales increased in the
first half by 6 percent to 3,500 cases while export sales fell
50 percent to 1,500 cases.
VINEYARD AND WINERY OPERATIONS
The Company continued its development of the Bridgeland Vineyard
during the period together with normal operations at the
Alexandra Bridge Vineyard and Karridale Winery. An indicative
crop expectation for the 2002 vintage is as follows:
Bridgeland Vineyard 350 tonnes
Alexandra Bridge Vineyard 185 tonnes
Contract growers 130 tonnes
Total expected crush 665 tonnes
During the year all winemaking was centralized at the Company's
modern facility at Karridale.
CORPORATE & BUSINESS RESTRUCTURING
As previously advised to shareholders, the Company's management
and board spent considerable time during this period under
review attempting to address the Company's balance sheet. In
this regard, the Company reviewed a number of opportunities to
raise capital, dispose of non-core assets, reduce the level of
secured debt and increase the scale of its operations via
mergers and acquisitions. These activities included:
* The issue in September 2001 of $288,000 of Convertible
Notes.
* The sale of the Wildwood Estate property for $2.9 million
in November 2001.
* Due diligence on the proposed merger with an Eastern States
winery operation.
As announced to the market on 17 January 2002 the Company has
reached agreement with the 'Calneggia Group' for the restructure
and re-capitalization of the Company.
The key terms of this agreement include:
* Appointment of Directors, Mike Calneggia, Tony Taylor,
David Riekie;
* Resignation of Directors, Evan Cross, Ronny Tjahjono and
Stanley Brown;
* An initial share placement to raise $640,000;
* An independent review of the carrying value of vineyard
assets and stock;
* The write-off of goodwill in respect of the Hotham brands;
* Proceeding with a fully underwritten renounceable rights
issue to raise approximately $5 million; and
* Finalizing the basis for continuing banking support and
facilities.
SUMMARY OF TRADING AND OPERATING RESULTS TO 31 DECEMBER 2001
The Company incurred a loss for the half year of $8,262,358,
after taking account of $7,602,471 in write-downs of its core
vineyard and winery assets, inventory, goodwill and the loss on
sale of Wildwood and other assets.
The trading and operating results for the first half are
summarized as follows:
$
Sales Revenue for the half year to 31 December 2001 503,543
Proceeds from the sale of Wildwood Winery 2,900,000
Increase in self generating and regenerating
assets (SGARA) 426,114
Other Revenue 34,500
Total Operating revenue 3,864,157
Operating loss from operations before
depreciation, amortization, and interest 49,425
Depreciation expense 184,790
Amortization of goodwill 18,316
Interest expense 407,356
Operating loss from operations before asset write
downs and loss on disposal 659,887
Write down of land, property and improvement values
to current market value 3,885,142
Write off of goodwill 546,434
Write down of excess inventories to market value 1,899,361
Loss on sale of Wildwood Property and other assets 1,271,534
Net loss for the half year to 31 December 2001 8,262,358
FULL YEAR FORECAST LOSS TO 30 JUNE 2002
Based upon the Company's first half result, the Company is
forecasting a full year loss estimated not to exceed $9.0
million (which compares to the 30 June 2001 year loss of $2.718
million). The forecast loss for the second half (January to June
02) is estimated to be significantly lower than the first half,
as a result of the recent rationalization of bulk wine and non
core labeled stock, the sale of the Wildwood Vineyard, the cost
savings from staff rationalization programs and other cost
reductions instigated by current management.
The result will also be substantially below the forecasts
detailed in the Company's Prospectus of October 2000, as a
result of the lower than forecast sales (including sales to the
export markets of UK and USA), higher carrying cost of
borrowings, the lower market prices for grape contracts and the
write down in asset values outlined above.
IOCOM LIMITED: Shareholders Meeting Scheduled For March 14
----------------------------------------------------------
Iocom Limited (the Company) advised Australian Stock Exchange
Limited (ASX) on 28 November 2001 that it had agreed,
subject to obtaining all necessary shareholder approval, to
acquire Optima Computer Technology Pty Limited (Transaction).
The Company released a Prospectus dated 15 January 2002 and
Notice of General Meeting in connection with the Transaction.
The Company has also released a Supplementary Prospectus dated
15 January 2002 and a Notice of Adjourned General Meeting in
connection with the Transaction.
A general meeting of shareholders has been convened for
Thursday, 14 March 2002 to consider resolutions to implement the
Transaction.
Apart from seeking approval to acquire Optima Computer
Technology Pty Limited, the resolutions also include, but are
not limited to, a consolidation of existing capital of the
Company at a ratio of 1 security for every 4 held, issues of
further securities pursuant to a top-up scheme, and a change of
company name to Optima ICM Limited (the proposed ASX code for
Optima ICM Limited is OPI).
If all required approvals are obtained and the proposed
acquisition of Optima Computer Technology Pty Limited proceeds,
the timetable is expected to be:
WEDNESDAY 13 MARCH 2002
Last day of trading cum Bonus Options.
THURSDAY 14 MARCH 2002
The Company's securities suspended before the commencement of
trading, General meeting of shareholders to consider all
resolutions to implement the proposed Transaction.
The Company immediately advises ASX the outcome of the meeting.
FRIDAY 15 MARCH 2002
Ex-date for Issue of Bonus Options
THURSDAY 21 MARCH 2002
Record date for consolidation of existing securities on issue (1
security for every 4 held) and for determination of entitlement
to Bonus Options (1 bonus option for every 1 ordinary
consolidated share held at record date).
TUESDAY 26 MARCH 2002
Completion of Transaction including issue of shares pursuant to
the Prospectus and Supplementary Prospectus.
Wednesday 3 April 2002
Dispatch of holding statements for new shares and options issued
under the Prospectus and post consolidation of existing shares.
THURSDAY 4 APRIL 2002
Change of Company name (to Optima [CM Limited) is effective on
ASX.
ASX ticker code : OPI (shares)
OPIO (options)
SEATS short name: OPTIMA ICM
TUESDAY 9 APRIL 2002
Company reinstated to official quotation. Existing shares and
new shares and options trade on a post consolidation basis (ASX
codes: OPI a OPIO). Trading commences as part of normal opening
phase between 10:00 am and 10:10 am EDST.
It is expected another participants circular will be forwarded
on or around 3 April updating the above and details relating to
the reinstatement of the Company.
MAXIS CORPORATION: Issues Shares to Raise Working Capital
---------------------------------------------------------
The Directors of Maxis Corporation Limited advised that
following a period of negotiations with several parties, the
Company has entered agreements for the issue of up to 147
million shares to enable it to raise working capital and,
subject to due diligence, to complete the acquisition of a 25
percent interest in IQ Advanced Technologies (IQ) and acquire
certain rights to Maxis subsidiary Managed Networks.
Of the total number of shares expected to be issued, between
61.0 and 77.75 million, depending on the results of the due
diligence, will be issued at 4.2 cents each and applied towards
or set-off against the acquisition of the interest in IQ and the
rights accruing to Managed Networks. The balance of the issue,
will raise up to $750,000 in working capital.
IQ is a subsidiary of Tele2OOO Limited and is a company involved
in the development of a fully integrated Digital Hotel and
Residential Entertainment System, including a Set Top Box, which
delivers digital Video and Games and high speed internet to
Hotels and residential complexes. IQ has formed relationships
with digital interactive service, content, software and hardware
providers and channel partners, which are essential to
delivering its System.
As a part of the transaction, Managed Networks, a Maxis
subsidiary involved in the management and installation of
networks and devices, has obtained certain rights to the
management and installation of the network and the
infrastructure that will eventually be deployed as part of IQ's
Hospitality Entertainment Solution for its clients.
The shares are issued in accordance with approval obtained from
shareholders under Listing Rule 7.1 at the last AGM and under
the Listing Rule which permits the issue of up to 15(%) of
issued capital without shareholder approval.
SAGE GLOBAL: Receiver Removed, Assets Freezing Order Lifted
-----------------------------------------------------------
The Supreme Court of New South Wales has made orders removing an
interim receiver from Sage Global Fund Ltd (Sage), a publicly
listed company, and lifting an order freezing Sage's assets.
The interim receiver was appointed to Sage as well as Australian
Investors Forum Pty Ltd (AIF) and a number of related companies,
on 2 November 2001 following action taken by the Australian
Securities and Investments Commission (ASIC).
ASIC alleges that AIF and a number of individuals, including
Martin Lloyd-Cocks and Dominic Luvara, have engaged in conduct
in breach of the Corporations Act.
ASIC's proceedings also included Sage whose directors included
Messrs Lloyd-Cocks and Luvara.
The Supreme Court agreed to remove the interim receiver and lift
the freezing order on the grounds that Messrs Lloyd-Cocks and
Luvara had been replaced as directors of Sage; and as Messrs
Lloyd-Cocks and Luvara gave personal undertakings to the Court
that they, or any company under their control, would not
exercise any voting rights they may have in Sage until ASIC's
proceedings against them are resolved.
ASIC's proceedings against AIF, related companies, and a number
of individuals including Messrs Lloyd-Cocks, Luvara and Dennis
Anthony, are continuing.
================================
C H I N A & H O N G K O N G
================================
CHARTER PACKAGING: Winding Up Petition Hearing Set
--------------------------------------------------
The petition to wind up Charter Packaging & Sourcing Limited
is scheduled to be heard before the High Court of Hong Kong on
March 27, 2002 at 9:30 am.
The petition was filed with the court on January 2, 2002 by Bank
of China (Hong Kong) Limited (the successor corporation to
Kincheng Banking Corporation 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.
DICKEY LIMITED: Petition to Wind Up Pending
-------------------------------------------
The petition to wind up Dickey Limited will be heard before the
High Court of Hong Kong on May 22, 2002 at 9:30 am. The
petition was filed with the court on February 5, 2002 by Bank of
China (Hong Kong) Limited (the successor corporation to The
Kwangtung Provincial 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.
EMEX INVESTMENT: Faces Winding Up Petition
------------------------------------------
The petition to wind up Emex Investment Limited is set for
hearing before the High Court of Hong Kong on March 27, 2002 at
9:30 am. The petition was filed with the court on January 7,
2002 by Bank of China (Hong Kong) Limited (the successor
corporation to The Kwangtung Provincial 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.
FORD ART: Winding Up Petition Hearing Scheduled
-----------------------------------------------
The petition to wind up Ford Art Holdings Limited will be heard
before the High Court of Hong Kong on March 20, 2002 at 9:30 am.
The petition was filed with the court on December 31, 2001 by
Lee Yao Shan of Room 203, Block C, Westlands Garden, Quarry Bay,
Hong Kong.
FUJIAN INTERNATIONAL: Liquidating Assets to Repay Bondholders
-------------------------------------------------------------
The provincial trust company, Fujian International Trust &
Investment Corporation (FITIC), will need to liquidate its
assets to repay bondholders, as the provincial government will
not get involved in the matter, DebtTraders analysts, Daniel Fan
(852-2537-4111) and Blythe Berselli (1-212-247-5300), said.
The Company, liquidated on January 23 by People's Bank of China,
is in the process of debt registration until the end of this
month. FITIC holds 5.58 percent of Huaneng Power, which is
worth approximately US$477 million based on market
capitalization.
DebtTraders reports that FITIC's 7.375% bonds due on 2007
FUJI07CNS1) are trading between 54 and 63. For more real-time
bond pricing information, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=FUJI07CNS1
INDUSTRIAL INVESTMENT: Winding Up Petition Hearing Slated
---------------------------------------------------------
The petition to wind up Industrial Investment International
Limited is set for hearing before the High Court of Hong Kong on
today, March 13, 2002 at 9:30 am.
The petition was filed with the court on August 30, 2001 by
FirstRand Bank Limited, a company registered and incorporated in
accordance with the Company Laws of the Republic of South Africa
and having its registered address at 6th Floor, 2 First Place,
Bank City, Johannesburg, Gauteng.
ILINK HOLDINGS: Widens 2001 Loss to HK$34.9M
--------------------------------------------
ILink Holdings, 48 percent-owned by Pacific Century CyberWorks,
said its net loss for the year ended December 2001 widened 22
percent, from a year earlier to HK$34.9 million. The increase
in loss was due to higher costs, which rose to HK$63 million
from HHK$31 million, and a surge in general and administrative
expenses, which rose to HK$50.6 million from HK$22.3 million.
Its staff almost doubled to 118 from 62 a year ago.
SMARTONE TELECOM: Narrows Operations Loss to HK$43,885
------------------------------------------------------
SmarTone Telecommunications Holdings Limited (stock code: 315)
announced on 11/3/2002:
Year end date: 30/6/2002
Currency: HKD (Unaudited)
(Unaudited) Last
Current Corresponding
Period Period
from 1/7/2001 from 1/7/2000
to 31/12/2001 to 31/12/2000
('000) ('000)
Turnover : 1,140,796 1,320,096
Profit/(Loss) from Operations : (43,885) (112,938)
Finance cost : Nil Nil
Share of Profit/(Loss) of Associates : Nil Nil
Share of Profit/(Loss) of
Jointly Controlled Entities : Nil Nil
Profit/(Loss) after Tax & MI : (39,354) (112,938)
% Change over Last Period : N/A
EPS/(LPS)-Basic : ($0.07) ($0.19)
-Diluted : ($0.07) ($0.19)
Extraordinary (ETD) Gain/(Loss) : Nil Nil
Profit/(Loss) after ETD Items : (39,354) (112,938)
Interim Dividend per Share : Nil Nil
(Specify if with other options) : - -
B/C Dates for Interim Dividend : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : N/A
B/C Dates for Other Distribution : N/A
Remarks:
1. Turnover
The Group is principally engaged in the provision of
telecommunications and related services and the sale of mobile
telephones and accessories.
An analysis of the Group's turnover and the contribution to
operating profit/(loss) for the period by business segment is as
follows:
Six months ended Six months ended
31 December 2001 31 December 2000
Operating Operating
Turnover profit/(loss) Turnover profit/(loss)
HK$'000 HK$'000 HK$'000 HK$'000
Mobile and
international
telecommunications
services 1,026,519 66,407 1,158,746 83,132
Mobile telephone
and accessory sales 69,248 (31,217) 132,559 (87,135)
Internet and other
services 45,029 (79,075) 28,791 (108,935)
------- --------- --------- ----------
1,140,796 (43,885) 1,320,096 (112,938)
No geographical analysis is provided as less than 10 percent of
the consolidated turnover and less than 10 percent of the
consolidated trading results of the Group are attributable to
markets outside Hong Kong.
2. Loss per share
The calculation of loss per share is based on the loss
attributable to shareholders of HK$39,354,000 (2000:
HK$112,938,000) and on the weighted average number of
591,117,244 shares (2000: 601,402,716) in issue during the year.
Diluted loss per share is the same as the basic loss per share
as there is no dilution effect arising from the share options
granted by the Company.
3. Included in the loss from operations for the period ended 31
December 2001 was a write off of fixed and other assets which
comprised the following:
Six months ended 31 December
2001 2000
HK$000 HK$000
Fixed assets - impairment loss 67,884 -
Provision against investment
securities and associate 11,613 -
-------- ---------
79,497 -
======== =========
During the six months ended 31 December 2001, the Group has
undertaken a review of the value of the fixed assets of its LMDS
business. As a result of this review, the Group made a charge
of HK$68 million to write down certain fixed assets. During the
second half of the year ended 30 June 2001, the Group also made
a charge of HK$167 million to write-down certain fixed assets of
its LMDS and other non-mobile businesses.
During the period ended 31 December 2001, the Group undertook a
review of the valuation of its investments in technology funds.
In light of the current difficult business environment, a
provision of HK$12 million was made for these funds.
4. Comparatives
Certain comparative profit and loss amounts, including turnover,
cost of goods sold and other services provided and other
operating expenses have been reclassified to conform to the
current period's presentation.
Revenue is now stated net of retention discounts and sales
incentives for both periods ended 31 December 2000 and 2001 in
accordance with the presentation adopted at 30 June 2001.
WAH LEE: Sees No Reason for Volume Shares Increase
--------------------------------------------------
The Board of Directors of Wah Lee Resources Holdings Limited
has noted the recent increase in the trading volume of the
shares of the Company stated that, save as mentioned below, it
is not aware of any reason for such increase.
The Board has been informed by Mr. Zhang Yang, the Chairman of
the Company, that on 11 March 2002 he sold, through the market
799,000,000 shares in the Company, at a price ranging between
HK$0.052 per share and HK$0.054 per share (Disposal),
representing about 3.65 percent of the Company's issued share
capital and accounting for 78.64 percent of the total trading
volume of the Company's shares on the Stock Exchange on 11 March
2002. Prior to the Disposal, to the knowledge of the Company,
Mr. Zhang was indirectly interested in 15,000,000,000 shares in
the Company, representing about 68.61 percent of the Company's
issued share capital. As a result of the Disposal, Mr. Zhang is
indirectly interested in 14,201,000,000 shares in the Company,
representing about 64.96 percent of the Company's issued share
capital.
Save as mentioned above, the Board confirmed that there are no
negotiations or agreements relating to intended acquisitions or
realizations which are discloseable under paragraph 3 of the
Listing Agreement, neither is the Board aware of any matter
discloseable under the general obligation imposed by paragraph 2
of the Listing Agreement, which is or may be of a price
sensitive nature.
=================
I N D O N E S I A
=================
ASIA PULP: Units' Losses Reaches US$290M
----------------------------------------
Asia Pulp & Paper (AAP)'s subsidiaries had combined losses of
more than US$290 million for the first nine months of 2001, the
Asian Wall Street Journal reported Monday, referring to the
Company's preliminary unaudited data released.
The preliminary data for the first three-quarters of 2001 and
consolidated 2000 results showed:
* PT Indah Kiat Pulp & Paper had a net loss of US$166.9
million on sales of US$840.5 million for the nine-month period.
For 2000, Indah Kiat reported a loss of US$400.7 million on
sales of US$1.54 billion.
* PT Tjiwi Kimia had a nine-month loss of US$36.2 million on
sales of US$583.3 million. For all of 2000, Tjiwi Kimia had a
loss of US$359.7 million and sales of US$828 million.
* PT Pindo Deli had a loss of US$89.8 million and sales of
US$480.3 million. The company had a loss of US$375.8 million and
sales of US$760.5 million for 2000.
* PT Lontar Papyrus, reported a preliminary profit of US$6.4
million for the first nine months of 2001, on sales of US$161.1
million. For 2000, it had reported a loss of US$66 million on
sales of US$323.4 million.
"Operating conditions in 2001 were challenging due to depressed
demand in the region, overcapacity in the industry and low
selling prices for company products," APP's Chief Financial
Officer Hendrik Tee said.
APP said in its statement that debt-restructuring is "complex
and continues to involve analysis of myriad . complex
transactions that span many jurisdictions and laws."
APP also appointed a new auditor, LTC & Associates, which
replaces Arthur Andersen LLP.
=========
J A P A N
=========
DAIKYO INC: Considers Possible Restructuring
--------------------------------------------
Ailing condominium builder, Daikyo Inc is considering the
possibility of restructuring, but has not revealed any concrete
decision, AFX News reported Monday. The Tokyo Stock Exchange
(TSE) halted trading in Daikyo shares in the morning of March 11
due to media reports that the firm asked its main lenders for a
debt waiver of about Y430 billion and a debt-for-equity swap of
about Y40 billion to help the Company. An unnamed Daikyo
spokesman said trading in the shares would probably resume
around 10:30 am.
The Company will consider halving its capital, which stands at
around Y70 billion, to lessen its debt burden of Y1 trillion.
The Company owes main lender UFJ Bank Ltd Y500 billion, while
the three other unnamed lenders hold lesser amounts of debt at
more than Y100 billion each.
SNOW BRAND: Union Takes Employee Dismissal Case to Court
--------------------------------------------------------
A union at Snow Brand Foods Co. will challenge employee
dismissals by taking their cases to district courts in Sapporo,
Saitama and Kobe, Japan Times said Tuesday. Union officials said
employees were informed without prior explanation that the firm
would dissolve next month, and said the firm should take
responsibility and try to rehabilitate on its own.
The Company fired most of its 1,000 employees on March 10. The
firm was accused in January of deliberately mislabeling beef
products, which caused a sharp decline in sales. It admitted
passing off imported beef as Japanese beef to benefit from a
government buyback plan introduced last fall following the
discovery of mad cow disease in the country.
* Moody's Downgrades Eight Japanese Life Insurers
-------------------------------------------------
Moody's Investors Service on Monday downgraded the insurance
financial strength ratings (IFSRs) of eight Japanese life
insurance companies. The companies affected are: Daido Life,
Dai-ichi Life, Fukoku Life, Meiji Life, Mitsui Life, Nippon
Life, Sumitomo Life, and Yasuda Life. The ratings outlook for
these companies remains negative. This concludes the reviews
that began February 5, 2002 (October 12, 2001 in the case of
Yasuda Life). At the same time, Moody's revised the rating
outlook of Taiyo Life to negative from stable.
These downgrades and negative outlooks reflect worse-than-
expected weakening of the financial conditions of these life
insurers, the grim outlook for a quick recovery in the industry
operating environment, the limited benefit of capital
contributions planned, and the uncertain prospects for
additional external support. The Japanese life insurance sector
has been facing a long-term decline, stemming from a saturated
market that coincided with the deterioration in the economic
conditions of the country. Policy-in-force has been declining,
precipitated by increases in lapses and surrenders. This,
combined with negative earnings spread and diminishing
investment portfolio values, is severely pressuring the industry
players. The number of insurance Company failures has been on
the rise and surviving industry players have not benefited from
a flight-to-quality as policyholders sought investments outside
the troubled life insurance sector.
In response to the adverse business environment, the life
insurers are actively engaged in strategic and cost cutting
initiatives, including demutualization plans, alliance
formations, new product development, and risk assets reductions.
However, in Moody's view, these actions are unlikely to
materially stem the business decline and overcome the structural
deficiencies of the industry. These measures often take much
time to implement and actual benefits are likely to be modest.
In the absence of a significant economic recovery and/or a
drastic alteration of the industry structure, the profitability
and the financial health of the participants will continue to
deteriorate. While the industry woes impact all players, the
largest and best-capitalized insurers remain in a superior
position to withstand the difficulties given their stronger
franchises and greater financial resources.
These ratings were affected:
Daido Life Insurance Company (Daido Life): IFSR downgraded to
Baa2 from A3 with negative outlook
Dai-ichi Mutual Life Insurance Company (Dai-ichi Life): IFSR
downgraded to Baa2 from A3 with negative outlook
Fukoku Mutual Life Insurance Company (Fukoku Life): IFSR
downgraded to Baa3 from A3 with negative outlook
Meiji Life Insurance Company (Meiji Life): IFSR downgraded to
Baa2 from A2 with negative outlook
Mitsui Mutual Life Insurance Company (Mitsui Life): IFSR
downgraded to Ba3 from Ba1 with negative outlook
Nippon Life Insurance Company (Nippon Life): IFSR downgraded to
A3 from Aa3 with negative outlook
Sumitomo Life Insurance Company (Sumitomo Life): IFSR downgraded
to Ba1 from Baa1 with negative outlook
Yasuda Mutual Life Insurance Company (Yasuda Life): IFSR
downgraded to Baa2 from A2 with negative outlook
Taiyo Mutual Life Insurance Company (Taiyo Life): Outlook
changed to negative from stable. Baa2 IFSR remains unchanged.
* R&I Reviews Rating of Non-Life Insurance Firms
------------------------------------------------
Rating and Investment Information, Inc. (R&I) on Thursday has
completed a review into the ratings assigned to the long-term
debt and commercial paper programs of Japan's leading non-life
insurance companies, and has adjusted them as follows:
TSE COMPANY NAME SENIOR L-T CREDIT CP
RATING RATING
FROM TO FROM TO
Tokio Marine & Fire Insurance Co., Ltd. (AAA) AA+ (a-1+) a-1+
Nichido Fire & Marine Insurance Co., Ltd.(AA) AA+ (a-1+) a-1+
Yasuda Fire & Marine Insurance Co., Ltd. (AA+) AA (a-1+) a-1+
Nissan Fire & Marine Insurance Co., Ltd. (A+) (A+) (a-1+) a-1+)
Mitsui Sumitomo Insurance Co., Ltd. AA+ AA -
Nipponkoa Insurance Co., Ltd. AA- A+ a-1+ a-1+
Aioi Insurance Co., Ltd. (AA-) A (a-1+) a-1
Nisshin Fire & Marine Insurance Co., Ltd.A BBB+ a-1 a-2
Fuji Fire & Marine Insurance Co., Ltd. A- BBB+ a-1 a-2
The Asahi Fire & Marine Insurance Co., Ltd.
Insurance Claims Paying Ability (CPA) BBB canceled
Senior Long-term Credit Rating BBB assigned
First Chicago Tokio Marine Financial Products Ltd. (AAA) A A+
TSE COMPANY NAME INSURANCE CPA RATING
FROM TO
Tokio Marine Life Insurance Co., Ltd. (AAA) AA+
Mitsui Sumitomo Kirameki Life Insurance Co., Ltd. AA+ AA
Nipponkoa Life Insurance Co., Ltd. AA A+
Aioi Life Insurance Co., Ltd. (AA-) A
RATIONALE:
There is increasing insecurity about the earnings potential of
all the nation's non-life insurance companies as the
deregulation of the market proceeds. To respond to this, there
have been moves toward a reorganization of the sector, and the
five major groups have extended their dominance of the field to
account for about 85 percent of the market. Even so, the slump
in the market has become more pronounced and it will remain
difficult for even these groups to boost their earnings
potential.
Price competition is emerging, especially in the corporate
insurance sector, so each Company is striving to maintain the
earnings potential of their insurance business as best they can,
for example through slight increases in premiums for auto
insurance for the individual market and by cutting personnel
costs and property costs. Further, earnings are being pressured
by the prolongation of Japan's historically low interest rate
regime, as well as the deterioration in the fund management
environment caused by the fall in the stock market.
Another cause for concern is rocketing rates for reinsurance
resulting from the September 11 terrorist attacks on America. It
is also impossible to overlook the impact the fall in the stock
market is having on solvency. Latent profits on equity holdings
serve, along with equity capital and disaster reserves, as the
insurers' real risk coverage, and in the past this has been used
to offset the fall in insurance income. Over the last few years,
however, there has been a massive reduction in latent profits
due to the fall in the stock market, and the policy objective of
reducing exposure to share price movements has become a heavy
burden to the insurers. At a time when it is hard to boost
equity capital out of flow profits, it is now time to move away
from the previous business model in which equity holdings can
serve as collateral while new insurance policies are won.
Furthermore, three medium-ranking insurers were hit by major
losses related to reinsurance deals overseas in November 2001,
and this has driven The Taisei Fire & Marine Insurance Co.,
Ltd., into bankruptcy. This has greatly increased concerns about
the risk management systems employed by the non-life insurers.
Based on these considerations, R&I is downgrading the ratings
for the non-life insurance companies by one or two notches,
including those for the leading groups such as The Tokio Marine
& Fire Insurance Co., Ltd. The rating for Tokio M&F, which used
to be AAA, will now stand at AA+. On the other hand, the rating
for The Nichido Fire & Marine Insurance Co., Ltd., which is in
the process of integration with Tokio M&F, is being upgraded by
one notch. Regarding Nipponkoa Insurance Co., Ltd., and Aioi
Insurance Co., Ltd., meanwhile, the gap against the top three
groups in terms of sales and earnings is still large, so both of
these ratings are being downgraded into the single A range.
Medium-scale insurers The Fuji Fire & Marine Insurance Co.,
Ltd., and The Nisshin Fire & Marine Insurance Co., Ltd., have
not set up medium-term plans to revitalize earnings, and the
increased severity of the management environment has prompted a
rating adjustment for them. The downgrade for Fuji F&M, however,
is just one notch, in consideration of the management alliance
with Orix Corp., a leading non-bank, and AIG, the major US
insurance and financial group.
Comments on individual issuers will be released at a later date.
=========
K O R E A
=========
DAEWOO ELECTRONICS: Creditors Opt to Keep Firm Afloat
-----------------------------------------------------
Local creditors of Daewoo Electronics Co Ltd (DEC) may keep the
firm afloat after finding the proposals made by three foreign
bidders well below expectations, AFX News reported Monday,
citing main creditor Hanvit Bank. The Company will decide
whether to sell it in two weeks after talks with all the
creditors, it said.
According to an unnamed Company spokesman DEC has been working
on a normalization scheme since mid-February in case the sale
talks collapse. The Company was placed under a debt workout
program when the parent conglomerate, Daewoo Group, collapsed in
2000.
DAEWOO SECURITIES: WFH Drops Plan to Buy Stakes
-----------------------------------------------
Holding firm Woori Finance Holdings Co. (WFH) has scrapped plans
to acquire Korea Development Bank's controlling stake in Daewoo
Securities because of differences in the method of payment,
Korea Herald and Korea Economic Daily reported Tuesday. WFH
offered to pay Daewoo with preferred shares, in a departure from
request from KDB to pay in cash.
According to the report, Woori plans to make inroads into the
life insurance segment.
TCR-AP reported in January that Daewoo Securities Co Ltd
expected proceeds of US$14.3 million due to the restructuring of
some of its overseas operations. The firm said about US$5.3
million of the total amount comes from the recently closed Tokyo
branch's capital base, which Daewoo expects to collect.
DAEWOO MOTOR: Tata Engineering May Acquire Poland Subsidiary
------------------------------------------------------------
Daewoo Motor's Polish unit Daewoo-FSO is likely to be sold off
to an Indian firm Tata Engineering, according to Korea Herald on
Tuesday, quoting an unnamed Polish government official. He said
two European companies also expressed interest in Daewoo-FSO.
The official emphasized that the issue of making the auto
production unit of Daewoo-FSO an independent firm would be
completed around April 20, with the Polish Ministry of Finance
and creditors expected to acquire a controlling stake in the new
firm.
HYNIX SEMICON: Sale Talks With Micron Ongoing
---------------------------------------------
Hynix Semiconductor and Micron Technology have yet to iron out
differences on loan terms and contingent liability issues
surrounding ongoing sales negotiations for Hynix' assets, Asia
Pulse reported Monday. Hynix and creditors are prepared to
expand funding support by US$200 million to US$300 million, in
addition to the US$1.5 billion requested by the Micron side.
The creditors want to apply market rates on the additional
funding support, but Micron is holding out for the prime rate.
Both companies maintain different positions with regards to the
status of contingent liabilities. Micron wants the creditors to
issue a guarantee for the contingent liabilities.
A negotiating team will survey prospects for a deal, and a final
picture is expected within this week.
HYNIX SEMICONDUCTOR: Cancels Sale Agreement With Cando Corp
-----------------------------------------------------------
Hynix Semiconductor Inc has canceled the exclusive negotiating
rights with Cando Corp., a Taiwan components supplier, to sell
its thin film transistor LCD operation for $650 million, EBN
News reported Sunday. The reason for the snag in talks with
Cando was not disclosed in the report.
Some analysts in Korea believed the LCD operation sale to Cando
hit a barrier when the Taiwan firm failed to make an initial
payment called for under the original memorandum of
understanding with Hynix.
The chipmaker is seeking other interested parties for the sale
of three TFT-LCD fabs in Icheon, Korea. The delay in gaining the
$650 million purchase price for its TFT-LCD operation will
impact Hynix refinancing agreement with creditors in which it
promised to bring in cash from selling off non-semiconductor
operations.
MEDISON CO: CDC Approves Court Receivership
-------------------------------------------
The Chuncheon District Court (CDC) has approved medical device
maker Medison Co Ltd for court receivership, Korea Herald
reported Sunday. According to the Court Medison still have
competitive technology and a 57 percent domestic market share in
ultrasound diagnostic scanners.
Medison defaulted on payments for W4.4 billion of commercial
papers with creditor Chohung Bank that matured on January 28. It
failed to honor the debt by January 29 and was declared bankrupt
that day. The Company filed an application for court
receivership on February 6.
Medison has asked its creditors to report the Company's debt
liabilities by April 22. Medison is now in talks with several
domestic and foreign companies to forge a strategic alliance
that could bring in fresh funds to the Company.
===============
M A L A Y S I A
===============
AMSTEEL CORPORATION: Obtains KLSE's Time Extension Approval
-----------------------------------------------------------
Amsteel Corporation Berhad announced that the Kuala Lumpur Stock
Exchange (KLSE), in a letter dated 7 March 2002, approved the
Company's application for an extension of time for four (4)
months from 12 February 2002 to 11 June 2002 for the Company to
obtain all the necessary approvals from the regulatory
authorities for the Company's revised proposed group wide
restructuring scheme.
Profile
The Amsteel Group has business operations in the steel, property
and hotel, plantation and motor industries. It also operates
departmental stores, hypermarkets and retail and food
businesses. Its departmental stores operate under the Parkson
name. Business operations are located both locally and overseas.
Presently, the Group is in the midst of implementing its
restructuring scheme announced in July 2000. The objective of
the scheme is to consolidate, stabilize and restructure and
rationalize the cash flow and funding of the Group and to
reorganize and restructure the Group's business.
Products : Steel billets and slabs, bars, coils and wire rods;
hot briquetted iron and iron products; bolts and nuts, tools and
dies. Motorcycles, passenger and commercial vehicles, tyres,
engines, other related parts and accessories. Printing and
writing paper and office furniture. Insurance, magnetic health-
care products, pharmaceuticals and optical products.
BRIDGECON HOLDINGS: KLSE Grants Announcement Extension
------------------------------------------------------
Alliance Merchant Bank Berhad, on behalf of Bridgecon Holdings
Berhad (Special Administrators Appointed) (BHB or Company),
announced that the Kuala Lumpur Stock Exchange had, via its
letter dated 7 March 2002, granted an extension up to 31 March
2002 for the Company to make its Requisite Announcement under PN
4/2001.
Save for the above, there are no major changes to the Company's
plans to regularize its financial position.
Profile:
On 23 February 2001, the Company had announced that it was in
the midst of formulating a restructuring scheme to regularize
its financial position. The Company had six months from 23
February 2001 to finalize a work-out plan.
On 6 April 2001, Mr Tan Kim Leong and Mr Siew Kah Toong of
Messrs BDO Binder were appointed as Special Administrators (SAs)
of the Company. On 24 May 2001, they were also appointed as SAs
of subsidiaries Bridgecon Engineering Sdn Bhd and Lean Seng Chan
(Quarry) Sdn Bhd.
Subsequently, on 1 August 2001, parties to the Company's
proposed restructuring scheme withdrew from the scheme. On 10
August 2001, the Company requested for a six-month extension
from 23 August 2001 to submit a revised plan to regularize its
financial condition.
Currently the SAs together with Pengurusan Danaharta Nasional
Bhd are exploring alternative avenues available to restructure
the Company. In this connection, the SAs called for interested
parties to participate in a proposed restructuring scheme via a
tender exercise on 3 September 2001.
ESPRIT GROUP: Unit Faces Winding Up Petition Filed by WESD
----------------------------------------------------------
The Board of Directors of Esprit Group Berhad announced that its
subsidiary company, Esprit Holland Dredging (M) Sdn. Bhd. (EHD)
was served with a Winding-Up Petition filed by Wingtut
Enterprise Sdn. Bhd. (WESD) on 11 March 2002 following a Notice
pursuant to Section 218 of the Companies Act, 1965 requiring EHD
to pay the amount of RM70,715.01
The sum claimed against EHD based on the Petition is:
* Judgement Sum Rm56,606.16
* Interest Sum on RM56,606.16 from 12,803.85
* 27.11.1998 to 29.10.2001 at the rate of 8 percent per annum
[1032 days]
* Costs 1,305.00
Total as at 29-10-2001 70,715.01
The Petition is served pursuant to a final judgment obtained by
the petitioner against EHD on 24 August 2001 in the Kuala Lumpur
Sessions Court Summons No. 8-52-12338.00.
Esprit Group Berhad holds a 51 percent equity interest in Esprit
Holland Dredging (M) Sdn. Bhd.
The Winding Up petition will be heard at the Kuala Lumpur High
Court (D1) on 9 April 2002. EHD will instruct its lawyers to
represent the Company on that date.
GLOBAL CARRIERS: AMFB to Hold More Than 33% of Shares
-----------------------------------------------------
On behalf of Global Carriers Berhad (GCB), Arab-Malaysian
Finance Berhad (AMFB) announced that the Securities Commission
(SC) via its letter dated 28 February 2002 approved the Proposed
Waiver subject to AMFB obtaining the Bank Negara Malaysia
(BNM)'s approval for holding more than 33 percent of shares in
GCB. AMFB had on 15 February 2002 written to BNM to obtain its
approval to receive 38.89 percent of GCB's shares based on GCB's
enlarged issued and paid-up capital. BNM has yet to return its
decision. Consequently, GCB has not convened the creditors'
meeting to approve its Proposed Revised Scheme.
An announcement on the final shareholdings of AMFB in GCB will
be made upon AMFB obtaining BNM's approval.
Based on the circular (Circular), AMFB and Arab-Malaysian Bank
Berhad (AMBB) will collectively hold 200,860,505 GCB Shares,
i.e. approximately 46.1 percent of the enlarged issued and paid-
up capital of GCB of 435,551,163 shares. In addition, AMFB would
also be receiving GCB's shares from certain of its Borrowers as
a settlement towards the Borrowers' debt in respect of their
share margin trading facility accounts with AMFB.
As AMFB and AMBB are effectively controlled by the same holding
company, in accordance with Part II of the Code, AMFB and AMBB
will be obliged to undertake a Mandatory General Offer (MGO) for
the remaining shares in GCB not already owned by them. As stated
in the said Circular, AMFB and AMBB are to make an application
to the Securities Commission (SC) for a waiver from having to
undertake a MGO.
Accordingly, on 28 January 2002, Arab-Malaysian Merchant Bank
Berhad (Arab-Malaysian), on behalf of AMFB and AMBB, submitted
an application to the SC for a waiver from undertaking the MGO
pursuant to Practice Note 2.9.3 of the Code (Proposed Waiver).
HAI MING: Proposed Disposal Resolution Passed at EGM
----------------------------------------------------
Hai Ming Holdings Bhd announced that the resolution on the
proposed disposal by its wholly owned subsidiary company, Hai
Ming Capital Sdn Bhd, for a total cash consideration of Rmb 2.0
million or equivalent to approximately RM890,000, of 60 percent
of the issued and paid-up share capital in Hubei Huali Paper
Mills Co. Ltd has been duly passed at the Extraordinary General
Meeting (EGM) held on Monday, 11 March 2002.
Profile
The Hai Ming Group is principally involved in the manufacture of
tissue and woodfree paper related products and the wholesale of
paper, paper products and stationery. The Group's factories are
located in Klang, Chemor, Kuching and Kota Kinabalu. Currently,
its total tissue production capacity estimated at 6,000 m/t per
annum is at full production. Due to the withdrawal of bank
credits in 1999, the woodfree division's production output is
only about 3,000 m/t per annum. Approx. 90 percent of the
Group's turnover is derived locally and the balance is derived
from exports to Singapore and Brunei.
The Company is registered with the Corporate Debt Restructuring
Committee (CDRC) to restructure the Group's borrowings. The
Company and seven of its subsidiary companies have entered into
a conditional debt restructuring agreement with its bank lenders
on 30 October 2001 involving total debts of RM53,588,638 to be
fully settled by the issuance of new Hai Ming Holdings shares,
4.5 percent 5-year redeemable convertible secured loan stock,
4.5 percent 5-year irredeemable convertible unsecured loan stock
and cash payment.
At the same time, the Company also proposes to acquire Koh Poh
Seng Plywood Co (M) Sdn Bhd (KPS) which is principally involved
in the manufacturing and trading of timber, plywood, cement and
its related products. Vendors of KPS will end up with a 72.13
percent share holding in Hai Ming following the debt
restructuring and the proposed acquisition of KPS.
MAY PLASTICS: No Significant Change to Defaulted Payment Status
---------------------------------------------------------------
May Plastics Industries Bhd said that there has been no change
in the default status since the last announcement on 7 February
2002. The defaults will be regularized after the listing of and
quotation for the entire issued and paid up share capital of KSU
Holdings Berhad on the Second Board of the KLSE.
The list of default payments as at 28 February 2002 is enclosed
in the table at http://www.bankrupt.com/misc/TCRAP_May0313.gif.
PANTAI HOLDINGS: Petition Court Hearing Date Not Yet Fixed
----------------------------------------------------------
Pantai Holdings Berhad (PHB or the Company) announced that
Pantai Support Services Sdn Bhd (PSS) was served with a Petition
under section 181 of the Companies Act, 1965. The Company was
also put on notice that Balakrishnan A/L Vairavapillai
(Petitioner) had obtained an ex-parte interlocutory injunction
(the Injunction) restraining PHB from issuing or causing to be
issued 92,966,361 ordinary shares of RM1.00 each in PHB, to the
vendors of the Acquiree Companies.
The Company clarified that the setting aside orders obtained
from the Kuala Lumpur High Court on 6 March 2002 were in respect
to the Injunction. The Petition has not been heard by the Kuala
Lumpur High Court and no hearing date has been scheduled.
There has been no settlement arrangement for the Petition or
Injunction nor were there any terms and conditions in respect to
the setting aside order of the Injunction, apart from an order
that an inquiry as to damages be carried out.
PSC INDUSTRIES: Court Hearing Schedule Postponed to March 14
------------------------------------------------------------
The Board of Directors of PSC Industries (PSCI or the Company)
revealed that the court hearing scheduled on the 7 March 2002
has been adjourned to 14 March 2002 to allow the solicitors of
Affin Bank Berhad and the Receivers and Managers to file their
affidavits in reply.
The Company filed an application for an interim injunction to
restrain the Receiver & Manager from exercising their rights and
duties as their appointment is not proper and valid. This is due
to the fact that Perstim has made the installment payment
towards the banking facilities based on the accepted letter of
offer dated 28 March 2001. The next installment payment will
be due on 31 March 2002.
S P SETIA: Unit Enters Facility Agreement With Lender
-----------------------------------------------------
The Board of Directors of S P Setia Berhad (S P Setia or the
Company) announced that Bukit Indah (Johor) Sdn Bhd, a wholly-
owned subsidiary company of S P Setia had on 8 March 2002
entered into a Facility Agreement with OCBC Bank (Malaysia)
Berhad (Lender, Arranger and Facility/Security Agent), Malayan
Banking Berhad and Southern Bank Berhad (Lenders) for a
syndicated term loan facility of a maximum principal amount of
RM100.0 million (the Facility).
The Facility is for a period of seven (7) years. The purpose of
the Facility is to part-finance the acquisition of 452.625 acres
of freehold land located at Gelang Patah, Johor Darul Takzim for
a total cash consideration of RM118,298,070.
The Facility will not have any effects on the share capital and
the substantial shareholders' S P Setia holdings. The Facility
will also not have any material effect on the net tangible
assets and the earnings of the S P Setia Group for the financial
year ending 31 October 2002.
None of the directors or substantial shareholders of the Company
have any interest, direct or indirect, in the Facility.
SOUTHERN STEEL: Restructuring US$125M Term Loan Facility
--------------------------------------------------------
The Board of Directors of Southern Steel Berhad informed that
the Company as Borrower, The Development Bank of Singapore Ltd,
Labuan Branch as Agent and the Financial Institutions (Banks) on
8 March 2002, entered into a Supplemental Agreement to
restructure its US$125 Million Term Loan Facility (Loan).
Salient Term of the Supplemental Agreement
Extension of Time
The repayment date has been extended from 12 February 2002
(Effective Date) to 15 June 2008 with a put option to the Banks
at the end of 5 years.
Interest Rate
The Company shall pay to each Bank interest on each Bank's share
of the Loan for each Effective Interest Period (means a period
of 3 months or 6 months at the election of the Company) in
arrear on the Effective Interest Payment Date (the last day of
an Effective Interest Period) on the Restructured Facility at
the rate per annum, which shall be:
(a) in the case of a Bank that is owed dollars under the
Restructured Facility, the aggregate of SIBOR and the Effective
Margin and interest shall be computed on the actual number of
days elapsed on the basis of a 360 day year; and
(b) in the case of a Bank that is owed Ringgit Malaysia under
the Restructured Facility (pursuant to a conversion of the Loan
or any part thereof in accordance with 3 below), the aggregate
of that Bank's Base Lending Rate or Effective Cost of Funds
(whichever is the lower) and the Effective Margin and interest
shall be computed on the actual number of days elapsed on the
basis of a 365 day year.
Convertibility
It was also agreed that within a period of twelve (12) months
from the Effective Date:
(a) all or any of the Banks may elect to convert the currency
of all sums owing by the Company to them or it under the
Facility into Ringgit Malaysia by serving a notice on the
Company; and
(b) the Company may by notice in writing request any of the
Banks (without any obligation to make a similar request to the
other Banks) to convert the currency of all sums owing by the
Company to that Bank under the Facility into Ringgit Malaysia.
TRANS CAPITAL: KLSE OKS Regularization Plan Time Extension
----------------------------------------------------------
The Board of Directors of Trans Capital Holding Berhad (TCHB)
announced that TCHB has received the approval of the Kuala
Lumpur Stock Exchange (KLSE) for the extension of time for 2
months from 1 March 2002 to 30 April 2002 in order for TCHB to
revise its regularization plan and to make a revised Requisite
Announcement (RA) to the KLSE for public release.
Profile
On 1 August 2001, principal subsidiary, Trans Capital Sdn Bhd
(TCSB), was placed under receivership by a lender bank through
the appointment of Messrs Pathmarajah & Co as the Receiver and
Manager (R&M) for some of TCSB's properties valued at RM110m as
at 30 June 2001. Presently, TCH is in consultation with the bank
and R&M to work on a comprehensive restructuring scheme in order
to turn TCSB around.
Also, TCSB had between May and end-July 2001 disposed of its
stake of approximately 10 percent in Repeat Technologies, Inc, a
company listed on the NASDAQ in the US, in order to meet urgent
working capital requirements of the Group.
=====================
P H I L I P P I N E S
=====================
PHILIPPINE AIRLINES: Five Govt Agencies to Exercise Put Option
---------------------------------------------------------------
Five government financial institutions namely Development Bank
of the Philippines, Land Bank of the Philippines, Philippine
National Bank, Government Service Insurance System and the AFP
Retirement Service Benefits Systems have decided to exercise
their put option on Philippine Airlines (PAL) in May to require
majority shareholder Lucio Tan a cash injection of P2 billion
into the airline, AFX News reported Monday, citing Development
Bank of the Philippine President Remedios Macalincag. The
following institutions will meet Friday to discuss the plan.
The five agencies and Tan signed a put option deal in April 1996
requiring Tan to buy their remaining PAL shares after six years
at 5 pesos per share. The government agencies have a combined
4.26 percent stake in PAL, while Tan owns 88.94 percent, with
the rest held by minority shareholders.
DebtTraders reports that Philippine Airlines' floating rate note
due in 2000 (PHPA00PHN1) trades between 3 and 6. For real-time
bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=PHPA00PHN1
=================
S I N G A P O R E
=================
PRESSCRETE HOLDINGS: Posts Notice of Shareholder's Interest
-----------------------------------------------------------
Presscrete Holdings Ltd posted a notice of changes in Director's
and substantial shareholder Wong Meng Khoon's interest:
Date of notice to Company: 09 Mar 2002
Date of change of shareholding: 08 Mar 2002
Name of registered holder: Wong Meng Khoon
Circumstance giving rise to the change: Sales in open market at
own discretion
Shares held in the name of registered holder
No. of shares of the change: 8,000,000
% of issued share capital: 6.72
Amount of consideration per share excluding brokerage, GST,
stamp duties, clearing fee: S$0.05
No. of shares held before change: 23,091,825
% of issued share capital: 19.41
No. of shares held after change: 15,091,825
% of issued share capital: 12.68
Holdings of Director / Substantial Shareholder including direct
and deemed interest
Deemed Direct
No. of shares held before change: 23,091,825
% of issued share capital: 19.41
No. of shares held after change: 15,091,825
% of issued share capital: 12.68
Total shares: 15,091,825
The percentage of the number of shares held after the change in
shareholding is based on the paid-up share capital of
118,980,280 ordinary shares of S$0.10 each in the share capital
of the Company at the date of the change of shareholding
referred to above.
WEE POH: CEO Tang Lee Woon Resigns
----------------------------------
The Board of Directors of Wee Poh Holdings Limited (the Company)
announced on March 11 that Ms. Gabrielle Tang Lee Woon has
resigned as the Chief Executive Officer (CEO) of the Company and
shall leave the employment of the Company with immediate effect.
Mr Chew Yin What, the Chairman of the Board of Directors, has
taken over the duties of the CEO until the Board is satisfied it
has found a suitable candidate to fill the vacancy.
TCR-AP reported on January that Wee Poh Holdings Limited will
release the necessary information in due course with regard to
any scheme of arrangement, which is agreed upon by W&P Piling
Pte Ltd (WPP) and its creditors.
===============
T H A I L A N D
===============
GREEN UNION: Files Business Reorganization Petition
---------------------------------------------------
Real estate developer Green Union Company Limited (DEBTOR) filed
its Petition for Business Reorganization in the Central
Bankruptcy Court:
Black Case Number 831/2544
Red Case Number 108/2544
Petitioner: GREEN UNION COMPANY LIMITED
Planner: ASIA ASSET ADVISORY COMPANY LIMITED
Debts Owed to the Petitioning Creditor: Bt1,588,986,298.14
Date of Court Acceptance of the Petition: August 22, 2001
Date of Examining the Petition: September 17, 2001 at 9.00 A.M.
Court Appointment for the Hearing of the Court Order: November
29, 2001
Court has postponed the Date for Examining the Petition to
January 25, 2002
Court Order for Business Reorganization and Appointment of
Planner: January 25, 2002
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Matichon Public Company Limited
and Siam Rath Company Limited: February 11, 2002
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Government Gazette : February 26,
2002
Deadline for the Planner to submit the Reorganization Plan to
the Official Receiver: May 26, 2002
Contact: Miss. Amornrat Tel, 6792525 ext. 132
ITALIAN-THAI: Posts Add'l Reasons for Foreign Exchange Losses
-------------------------------------------------------------
ITD Planner Co., Ltd. in its capacity as Italian-Thai Public
Company Limited (ITD or the Company)'s Planner, reported the
additional information pertaining to unrealized foreign exchange
losses of ITD caused by the unexpected flotation of the Thai
Baht of the loan agreements signed before July 2, 1997 for the
year end 2001, which was reviewed by Ernst & Young Office
Limited for consideration and approval.
Description For The Company Only
As of December 31,2001
Foreign Currencies Loan from Loan US$ 97,121,218.24
Agreements signed before July 2,1997 Y5,013,971,096.30
Unrealized loss on foreign exchange Bt2,362,697,489.92
Realized loss on foreign exchange -None-
(due to under Rehabilitation Process)
Accounting Policy
As of December 31, 2001, the Company has outstanding long-term
loan and short-term loans according to various loan agreements
signed before July 2nd , 1997 in the amount of US$97,121,218.24
and Y5,013,971,096.30 which are presented in the financial
statement. Forward contracts or other hedging instruments have
not hedged such loans. Therefore, the Company has unrealized
loss on exchange of BT2,362,697,489.92 resulting from the
declining of the Thai Baht value.
Repayment for the above-mentioned loans in Year 2002 : -None-
(due to under Rehabilitation Process)
Below is the Auditor's Report on Additional Information Relating
to Unrealized Foreign Exchange Losses:
To the Board of Directors of Italian-Thai Development Public
Company Limited
I have audited the financial statements of Italian-Thai
Development Public Company Limited for the year ended 31
December 2001 and have issued my report on those statements in
my report dated 28 February 2002. My audit of those financial
statements included a review of the information in the
accompanying report "Additional Information Relating to
Unrealized Foreign Exchange Losses" which was prepared by the
Company's management for submission to the Stock Exchange of
Thailand.
Based on my review, I am not aware of any material modification
that should be made to the information in the report "Additional
Information Relating to Unrealized Foreign Exchange Losses" of
Italian-Thai Development Public Company Limited for the year
ended 31 December 2001.
Ruth Chaowanagawi
Certified Public Accountant (Thailand) No. 3247
Ernst & Young Office Limited
PREECHA GROUP: Omits Dividend Payment, Schedules GM
---------------------------------------------------
The Board of Directors of Preecha Group Plc. at a meeting
(No.1/2545) held on March 8, 2002 at 11.00 passed these
resolutions:
1. That the Company will omit dividend payment for the operation
from January 1, 2001 to December 31, 2001 .
2. That an ordinary general meeting of shareholders for the year
2002 should be held on April 26,2002 from 9.00am. at 9th floor
Preecha Group Building, 1919 Pattanakarn Road, Suanluang,
Bangkok. That the agenda for the meeting will:
(1) Certify the minutes of the extraordinary shareholders
meeting no. 1/2001
(2) Certify the company's annual report and the board of
directors report for 2001.
(3) Approve the company's balance sheets, profit and loss
statements, and cash flow statements as at December 31, 2001.
(4) Consider the allocation of net profit of legal reserves
and dividend omission for the year 2001''s operational results.
(5) Consider the 2002 remuneration for the board of
directors.
(6) Appoint new directors to succeed those completing their
terms, fix the number of directors and their authority.
(7) Appoint an auditor and fix the auditing fee for the year
2002.
(8) Consider other issues (if any)
3. That the date for closing the Company share register for the
right to attend the ordinary general meeting of shareholders
will be on April 9, 2002 at 12.00pm until April 26, 2002.
PTT PUBLIC: Clarifies Dispute With IPCO
---------------------------------------
PTT Public Company Limited (PTT or the Company), in reference to
certain press released about the result of the dispute since
1997 between PTT and IPCO-G&C Joint Venture (Thailand) (IPCO)
with regard to the construction of onshore parallel pipeline
laying from Rayong - Bangpakong - Wang Noi, announced that the
International Court of Arbitration (ICC) had come to an award
that PTT is to pay penalties on lawsuit in the amount of
approximately US$25 million including expenses from the file
complaint.
PTT does not accept the award of ICC since PTT has participated
in these arbitration proceedings under standing protest as it
believes IPCO improperly instituted them and that they proceeded
contrary to the agreement of the parties and applicable law and
also the award contains numerous errors of fact and of law,
therefore, the award of ICC is not final.
During the arbitration proceed by IPCO, PTT also instituted its
own proceedings against IPCO in the Thai Courts through the
Office of the Attorney-General for the delay of work submission
which caused PTT damages amounting to approximately Bt4,000
million (US$100 million). The case is in the process of taking
evidence.
To protect PTT's right, PTT intends to vigorously challenge any
attempt by IPCO to enforce it in Thailand or elsewhere. In
addition, PTT shall not pay any amount to IPCO until the final
judgment from the Thai Courts.
This particular dispute has already been disclosed in page 127
of PTT's prospectus during the IPO and in the notes to PTT's
financial statements.
TPI POLENE: Creditors' Support Likely, Says DebtTraders
--------------------------------------------------------
DebtTraders analysts, Daniel Fan (852-2537-4111) and Blythe
Berselli (1-212-247-5300), say "TPI Polene's US$375 million
offer from Siam City Cement is likely to obtain an approval from
creditors. Siam City Cement bought 77 percent stake in TPI
Polene for US$375 million and will consider an additional cash
injection, of which US$180 million will be used to buy back
US$250 million of debt."
"We believe the news is a credit positive for the TPI Polene
2.75% Convertible Bond due '06," Mr Fan and Berselli add.
TPI Polene Public Co Ltd'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.
* SET Transfers Companies Under Rehabilitation Category
-------------------------------------------------------
The Stock Exchange of Thailand (SET) has established procedures
and guidelines for a listed company to be transferred to the
category named Companies Under Rehabilitation (REHABCO) by
considering a listed company's financial statements showing
negative shareholders' equity on its balance sheet. However, it
should be noted that any unrealized losses that occurred as a
result of the of 1997 change in the exchange rate system can be
used to adjust its shareholders' equity. In addition, in case
the auditor has issued a qualified opinion, the Exchange may
consider the financial condition of the listed company by
including the adjusted condition from the auditor's report. If
company shareholders' equity is less than zero, the SET will
transfer the listed company to the REHABCO category.
The SET has considered the audited annual financial statements
ending 31 December 2001 filed by listed companies. As a result,
the four companies listed here have been subjected to
rehabilitation plan preparation because they reported negative
shareholders' equity. They have been divided into two groups as
follows:
1.1 Three listed companies subjected to rehabilitation plan
preparation:
* Asia Hotel Public Company Limited (ASIA)
* Distar Electric Corporation Public Company Limited (DISTAR)
* General Engineering Public Company Limited (GEL)
1.2 One listed company whose rehabilitation plan has already
been approved by the creditors and the Bankruptcy Court:
* The Royal Ceramic Industry Public Company Limited (RCI)
Therefore, the SET will proceed under the requirements of the
Rules Governing Delisting of Securities, 1999 by transferring
the securities of these four listed companies to the REHABCO
category on 11 March 2002 as indicated in the two groups below:
* Group 1 The three listed companies subjected to
rehabilitation plan preparation are ASIA, DISTAR and GEL.
1. The SET will temporarily post an SP (suspension) sign on 11
March 2002 to suspend further trading for 30 days from the date
of announcement to 9 April 2002. This is to give the companies'
management time to make prudent decisions that benefit all
parties concerned.
2. These companies must inform the SET by 9 April 2002 whether
they have decided to prepare a rehabilitation plan to propose to
the companies' shareholders; or whether they would like to ask
for voluntary delisting; or they would like to attempt
rehabilitation under new Bankruptcy Act; or whether they would
like to try other options which will benefit all company
stakeholders involved. The companies must also provide the SET
with a time schedule to implement their decisions.
3. In case a company decides to prepare a rehabilitation plan to
propose to the shareholders, the company must proceed as
follows:
3.1 Appoint an independent financial advisor to assist
management in the preparation of the rehabilitation plan.
3.2 Co-operate fully with the independent financial advisor
in organizing a meeting to present the rehabilitation plan to
analysts and shareholders, and then also propose it to the
shareholders for approval.
3.3 Co-operate with the independent financial advisor in
reporting every three months to the SET on its actual
implementation progress, as compared to the rehabilitation plan
until the causes of possibly being delisted are eliminated.
In case the company submits a petition under the Bankruptcy
Act, the company is able to implement the rehabilitation plan
approved by the creditors and the court in place of the plan
approved by the company's shareholders. However, the company
still has the duty to report the SET about the implementation
progress (see No 3.3).
4. The SET will allow trading the securities of three listed
companies, ASIA, DISTAR and GEL under the REHABCO category from
10 April 2002 to 9 May 2002 after receipt of all required
information (see No.2.). This is to give all shareholders a
chance to trade the securities, before further suspension
during the company has implemented the rehabilitation plan.
5. The SET will post an SP (suspension) sign to prohibit the
trading of three listed companies, ASIA, DISTAR and GEL on 10
May 2002 onward. However, these listed companies may request the
SET to allow continued trading under the REHABCO category, if
they have completed their debt restructuring more than 50
percent of their total debts, and the rehabilitation plan has
either been approved by the shareholders or the Bankruptcy Court
in accordance with the conditions specified by the SET.
* Group 2 The one listed company whose rehabilitation plan
has been approved by the creditors and the bankruptcy court is
RCI.
1. The SET allows trading RCI's securities under REHABCO
category because their rehabilitation plans have been approved
by the creditors and the Bankruptcy Court and the companies have
already disseminated the major elements of the rehabilitation
plans via the SET information system (R-SIMS).
2. RCI still has to report to the SET every three months on
their actual implementation progress, as compared to their
rehabilitation plan.
The SET requests that all shareholders and general investors
study the complete set of the financial statements of these four
listed companies and the rehabilitation plans of RCI published
in the R-SIMS system. The SET also recommends that they follow
up on the rehabilitation plan progress of ASIA, DISTAR and GEL
which these companies and their financial advisors must prepare
to present at their shareholders' meetings or the Bankruptcy
Court.
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick,
Maria Vyrna Nineza-Merlin, Maria Cristina Pernites-Lao, Editors.
Copyright 2002. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers. Information
contained herein is obtained from sources believed to be
reliable, but is not guaranteed.
The TCR -- Asia Pacific subscription rate is $575 for 6 months
delivered via e-mail. Additional e-mail subscriptions for
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information, contact Christopher Beard at 240/629-3300.
*** End of Transmission ***