/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/020408.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, April 08, 2002, Vol. 5, No. 68 Headlines A U S T R A L I A ANACONDA NICKEL: Sells AIL to Lynas for A$5M ANSETT AIRLINES: Operating License Lapsed AUSDOC GROUP: Posts Change of Director's Interest Notice ITOCHU AUSTRALIA: S&P Affirms `B' Short-Term Rating OPEN TELECOMMUNICATIONS: Undergoes Major Restructuring C H I N A & H O N G K O N G CIL HOLDINGS: Interim Report Publication Delayed ELVEE INTERNATIONAL: Petition to Wind Up Pending NETEASE.COM: Appoints New Chief Financial Officer, Director SINOFIT (HK): Winding Up Sought by Full Gain SUN FAI: Hearing of Winding Up Petition Set I N D O N E S I A BENTALA KARTIKA: Disposes of Shares to Reduce Loan Balance PERTAMINA TBK: U.S. Court Issues Contempt Order J A P A N ASAHI MUTUAL: Sees Rise in New Policy Contracts AOKI CORP: R&I Downgrades L-T Rating to C FUJITSU LTD: Freezes Planned March 2003 Wage Hike MATSUSHITA ELECTRIC: Cuts Earnings Forecast NIPPON TELEGRAPH: Amends FY02 Financial Results NTT WEST: Introducing Major Reorganization Plan in May SNOW BRAND: Faces Earlier De-listing * S&P Downgrades Two Japanese General Trading Companies K O R E A DAEWOO MOTOR: Creditors Finalizing Deal With GM HANVIT BANK: Shareholders Meeting Approves FY01 Report HYNIX SEMICON: Creditors Deliver Counter Proposal to Micron HYUNDAI MERCHANT: Widens FY01 Net Loss To W319B MEDISON CO: Faces Delisting from KSE M A L A Y S I A ASSOCIATED KAOLIN: Awaits SC's Nod on Proposals EMICO HOLDINGS: Authorities Proposal Approval Pending HIAP AIK: Appoints Special Administrators L&M CORP.: Defaulted Interest Payment Stands RM191,779,703.30 LIEN HOE: April 19 EGM Proposed Shares Disposal MALAYSIAN RESOURCES: Unit Winding Up Petition Withdrawn MGR CORPORATION: Resolutions Passed at EGM PAN MALAYSIA: Proposal Completed RAHMAN HYDRAULIC: Writ of Summon Pre-Trial Set on June 17 RHB CAPITAL: Discloses Shares, Warrants Dealings RNC CORPORATION: Provides PRS Status Update SASHIP HOLDINGS: Workout Scheme Petition Filing Pending TIMBERMASTER INDUSTRIES: Unit SPA With White Knight Likely P H I L I P P I N E S INTERNATIONAL CONTAINER: Clarifies Debt Level Report PHILIPPINE LONG: Bond Buyers Set Conditions on Bond Offering PHILIPPINE LONG: Evaluating Financing Alternatives on Debt S I N G A P O R E EXCEL MACHINE: Clarifies Full Year Financial Statement L & M GROUP: Enters Oil Business Venture in Indonesia SEMBCORP LOGISTICS: Posts Notice of Shareholder's Interest T H A I L A N D CHONBURI-INTER: Business Reorganization Petition Filed EASTERN PRINTING: Registered, Paid-up Cap Decrease Completed NATIONAL FERTILIZER: Unit Submits Debt Restructuring Plan * FRA Accomplishes Liquidating 56 Suspended Companies - - - - - - - - ================= A U S T R A L I A ================= ANACONDA NICKEL: Sells AIL to Lynas for A$5M -------------------------------------------- Anaconda Nickel Limited has agreed to sell its wholly owned subsidiary Anaconda Industries Ltd (AIL) to Lynas Corporation Limited (Lynas). AIL is the holding company for Anaconda's interests in the Mt Weld Tantalum and Rare Earths deposits in WA. Earlier this year, the Company announced that AIL would sell its interests in the Mt Weld Rare Earths deposits to Lynas. The sale of AIL to Lynas replaces this transaction and facilitates the sale of Anaconda's entire interest in the Mt Weld Projects, including both Rare Earths and Tantalum. Lynas has agreed to purchase AIL for $5 million and will also assume AIL's contingent debt obligations of $3.75 million and future royalty payments to Ashton Mining (WA) Pty Limited. Anaconda's Chief Executive Officer, Mr Peter Johnston said, "The sale of Anaconda Industries (Mt Weld) to Lynas is another step in the rationalization process which has been under way at Anaconda since late last year, and is consistent with our strategy of focusing solely on the nickel operations at Murrin Murrin." ANSETT AIRLINES: Operating License Lapsed ----------------------------------------- The Civil Aviation Safety Authority (CASA), the peak regulatory body for air safety in Australia, confirmed Thursday that Ansett Airlines' Administrators, Mark Mentha and Mark Korda of Andersen, did not renew the operating certificate when it fell due on March 31, the Sydney Morning Herald reports, citing a CASA spokesman. The administrators are assumed to have held preliminary talks with some airlines wanting to lease Ansett aircraft. If they go ahead with a so-called wet-lease arrangement, Ansett would need to renew its operating certificate. "We told them that in the near term, like in the next few months, if you have to come back we could process [a renewal] in a few days," the CASA spokesman said, "But obviously, the longer that goes on, the more difficult it becomes." CASA plans to cancel some of the airlines' certificates for Ansett planes, particularly those mothballed last month and sent to the aircraft graveyard in California's Mojave desert. AUSDOC GROUP: Posts Change of Director's Interest Notice -------------------------------------------------------- Ausdoc Group Limited posted this notice: CHANGE OF DIRECTOR'S INTEREST NOTICE Name of Company Ausdoc Group Limited ABN 61 005 482 913 We (the entity) give the ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act. Name of Director Peter T Reilly Date of last notice 04/01/2002 Part 1 - Change of director's relevant interests in securities Direct or indirect interest Direct interest in 353,524 shares Indirect interest in 11,302,934 shares Nature of indirect interest (including registered holder) Nabawa Pty Ltd (a Company controlled by PT Reilly) - 5,842,560 shares Parmelia Pty Ltd (a Company controlled by PT Reilly) - 5,174,860 shares Parmelia Pty Ltd (as trustee for the Reilly Family Superannuation Fund) - 285,514 shares Date of change 21 & 22/03/2002 No. of securities held prior to change 11,806,458 Class Ordinary fully paid shares Number Acquired Nil Number disposed 150,000 Value/consideration $321,545.44 No. of securities held after change 11,656,458 Nature of change On market sale by Parmelia Pty Ltd Part 2 - Change of director's relevant interests in contracts Detail of contract - Nature of direct interest - Name of registered holder (if issued securities) - Date of change - No. and class of securities to which interest related prior to change - Interest Acquired - Interest disposed - Value/consideration - Interest after change - ITOCHU AUSTRALIA: S&P Affirms `B' Short-Term Rating --------------------------------------------------- Standard & Poor's on April 4 had lowered the ratings on Mitsubishi Development Pty. Ltd.'s A$300 million medium-term notes/commercial paper program to `BBB+/A-2', and affirmed the `A-2' and `B' short-term ratings on Mitsui & Co. (Australia) Ltd. and Itochu Australia Ltd., respectively. This follows action taken on their respective Japanese parent companies. The long-term rating on Mitsubishi Corp. was lowered to `BBB+' from `A-' and the short-term rating affirmed at `A-2'. The outlook on the long-term rating is negative. At the same time, the `A-2' short-term rating on Mitsui & Co. Ltd., and the `B' short-term rating on Itochu Corp. were affirmed. The rating adjustments reflect Standard & Poor's view that weak demand, deteriorating credit quality in the industrial sector, a frail banking sector, and a deflationary environment in Japan have diminished the credit strength of the country's general trading companies. If credit market and economic conditions do not improve, the credit quality of all general trading companies could come under further pressure. The vulnerability of the firms to asset write-downs in the event of bankruptcies or debt restructuring in the corporate sector, or as a consequence of general price deflation, is compounded by their substantial use of debt financing. "General trading companies are insufficiently capitalized with regard to the nature of the risks they take," said Takahiro Saimen, a credit analyst at Standard & Poor's in Tokyo. "Their credit quality is also being pressured by an increasing strategic focus on long-term lending and investment activities, which is not being balanced by a commensurate build-up of their highly leveraged equity bases." Continuing deflation will increase the real cost of debt and require higher provisioning, weakening the profitability of general trading companies and impairing their ability to reduce their debt leverage. Although Mitsubishi and Mitsui are expected to maintain adequate credit quality in the foreseeable future, they face the double challenge of strengthening their finances while expanding into new businesses with better growth prospects but generally higher risks than their traditional trading operations. OPEN TELECOMMUNICATIONS: Undergoes Major Restructuring ------------------------------------------------------ Open Telecommunications Limited (ASX code: OTT) announced a number of major initiatives designed to sharpen the company's focus on its core competencies in growing markets, lift profitability and begin to rebuild shareholder value. The strategy announced is in line with recommendations contained in the strategic review undertaken by the Company and Macquarie Technology Investment Bank over the past six months, and clearly defines the direction of the Company going forward. The restructured Open Telecommunications will focus on its core business of developing and marketing its packet-aware operational support systems (OSS) and value added service fulfillment software products, while retaining the infrastructure necessary to successfully complete development and deployment to key switching software customers, Non- strategic and non-profitable product lines, business units and software development are being closed. The new strategy allows OTT to leverage its considerable expertise in packet telephony, call control and enhanced services into the continued success of its openCI family of network inventory management and provisioning software products. "This Company now has one clear, overarching objective: to focus its business around its core technologies in markets which offer us the highest leverage, and to make sure we execute on our potential in those markets," Mr Colin Chandler, the Company's Managing Director said. "The downturn in global markets has actually provided major opportunities for Open Telecommunications globally. It has lifted demand from high quality carriers for the things we do best: systems that help carriers optimize their business and maintain high data quality", Mr. Chandler said, "Going forward, our presence in the OSS and value added service fulfillment market will be built solely around our world product, openCl, which meets this need. "Revenues associated with openCl more that doubled in the 2001 year, despite the challenging market conditions. It is clear that a business centered around this software product is the most logical business strategy for us to pursue," he added. "Operational support systems may not be the glamour end of the business, but they are the engine room, and a segment of the telecommunications software market, which will continue to grow strongly as carriers face the challenges of a more competitive market. We are in the fortunate position of having the technology and the experience to meet that need, and to help them to manage their business more effectively," he said. As announced to ASX on 15 Match 2002, the Company has been reorganized into two business divisions, comprising: * OSS, with its core product openCl, which is being deployed in Telstra and Optus in Australia, Embratel in Brazil and Williams Communications in the US; and * Switching, with its core products openWirelessCallAgent (being deployed in COMindico in Australia), openWirelessCallAgent (being deployed in LG Electronics in Korea) and the Intelligent Networking platform. In line with the new strategy, non-strategic and non-profitable product lines, business units and software development are being closed. The Company will reduce employee numbers by 77 people to approximately 315 staff, while offices in Perth, London, the Netherlands and New Zealand are being closed. OSS BUSINESS INITIATIVES The OSS Division is being enhanced as the Company considers that this business is likely to provide the clearest path to profitability. In the 2001 year, the leading position of the Company's openCl software product enabled the OSS business to double revenues, even under the prevailing challenging market conditions. As the commercialization of openC1 gathers momentum, OTT remains encouraged by the growth opportunities in its market. The Company has an established and growing openCl customer base and in addition to the current market opportunities, the Company has developed considerable capabilities in packet-based network technologies. This will position the Company to capitalize on emerging market opportunities as customer's transition to packet- aware OSS network capabilities. SPECIFIC ENHANCEMENTS TO THIS BUSINESS COMPRISE: * appropriate staff with relevant expertise in call control, internet protocol and enhanced services technologies have been transferred from the Switching business to the OSS business. The OSS business plan is to focus on its packet-aware openCl product, in which the Company has existing opportunities, technology leadership, market recognition and strategic competitive advantages; * the growth of associated systems integration capabilities for openCl including the acceleration of development of interfaces and adaptors to ensure openCl can be seamlessly deployed along side all other OSS technologies in a customers network; * enhancing and utilizing partnership arrangements to broaden the Company's OSS distribution capabilities, accelerate entry into new OSS markets and enable focus on higher margin core activities of developing and licensing OSS software; and * leveraging our strong packet telephony and value added service fulfillment domain knowledge into the evolution of the Company's openCI and packet-aware OSS roadmap. SWITCHING BUSINESS INITIATIVES Today's initiatives in the Switching Division will ensure that all activities undertaken by the group am focused on existing contractual commitments. These include: * the completion of the development, deployment and support of the major switching and intelligent networking projects to COMindico and LG Electronics; and * continuation of software support and maintenance services to CSL HKT and Bell South Peru. All activities not associated with these customer commitments will cease and specifically include: * the transfer of certain packet telephony domain experts to the OSS division; * cessation of all non-OSS related software development and commercialization activities, The Company, however, remains committed to meeting existing customer development, deployment and support commitments; * closure of the Switching Division's European sales and marketing infrastructure, including the closure of the London and the Netherlands offices; and * closure of the Company's New Zealand offices and cessation of the existing business operations in New Zealand. NEW BUSINESS STRUCTURE The key elements of the new business structure required to execute on the new corporate strategy comprise: * greater resources being focused on the OSS business particularly in sales and marketing, product development and solution deployment. These core functions predominantly occur in Sydney, Melbourne, the United States, Brazil and Hong Kong. European business opportunities are being serviced through the US and Australian offices; * the effect of the staff reductions will be particularly to improve the product focus on openCI, to reduce research and development expenditure in absolute dollar terms and to complete the development of all customer required switching products; * a focus on delivering the potential of, and better realization of value for, the Company's core OSS business, with the aim to rebuild a solid, sustainable, durable, profitable and cashflow positive business; * reducing the company's cost base and improving financial performance; and * the reduction in staff numbers in Switching and management functions by 77. Total company wide staff numbers will reduce to approximately 315 total staff. These staff reductions are almost all focused in Australia and New Zealand, Staff reductions are occurring predominantly in Switching Business functions that have largely completed specific development and deployment activities. The Company will take a one-off charge of approximately $1.4 million this half year for the cost of these actions. The ongoing monthly savings achieved for salary and premises costs alone are approximately $0.6 million per month. For further information contact: Colin Chandler Richard Kuo Rosemary Luker MANAGING DIRECTOR SVP CORPORATE MEDIA RELATIONS (612) 8925 3000 (612) 8925 3000 (612) 9212 7590 ================================ C H I N A & H O N G K O N G ================================ CIL HOLDINGS: Interim Report Publication Delayed ------------------------------------------------ The Directors of CIL Holdings Limited, with reference to the Company announcement dated 28th March 2002 in relation to further delay in dispatch of circular and delay in release of interim results announcement and dispatch of interim report, announced that there will be a delay in the publication of the interim results of the Group for the six months ended 31st December 2001 on or before 17th April 2002. Due to the delay in the preparation of management account of a major subsidiary of the Company, the Directors anticipate that reviewing the Group's account information and thereafter, the publication of interim results of the Group can be completed on or before 17th April 2002. The Directors consider increasing accounting staff of the Group for the coming years in order to have better monitoring over subsidiaries in preparing accounting materials and ensure the timely issue of the Group's result announcement and financial report. The delay in the publication of the interim results and dispatch of the interim report of the Company constitute breaches of paragraphs 10(1) and 11(6) of Appendix 7b of the Listing Rules by the Company. In this regard, the Stock Exchange reserve its right to take appropriate action against the Company and /or its Directors. The Directors have not dealt in the shares of the Company since 28th February 2002, and have undertaken to the Stock Exchange that they will not deal in the shares of the Company until the interim results for the six months ended 31st December 2001 are published. Investors are advised to exercise caution when dealing in the shares of the Company. The directors of the Company jointly and severally accept full responsibility for the accuracy of the information contained in this announcement. ELVEE INTERNATIONAL: Petition to Wind Up Pending ------------------------------------------------ The petition to wind up Elvee International Development Limited is set for hearing before the High Court of Hong Kong on May 8, 2002 at 9:30 am. The petition was filed with the court on January 29, 2002 by Tang Shui Wah, Sara of Room 2214, Block 6, Kwai Shing West Estate, Kwai Chung, New Territories, Hong Kong. NETEASE.COM: Appoints New Chief Financial Officer, Director ----------------------------------------------------------- NetEase.com, Inc. (Nasdaq:NTES) announced on April 2 that its Board of Directors has promoted Mr. Denny Lee, the company's current Financial Controller, to the position of Chief Financial Officer effective immediately. The Board of Directors also elected Mr. Lee to become a member of the Board. Prior to his joining the company in November 2001, Mr. Lee worked for the international accounting firm of KPMG as an auditor in its Hong Kong office for more than ten years. Commenting on this appointment, Ted Sun, the Company's acting Chief Executive Officer, stated, "With his proven skills in accounting and financial matters, we believe that Denny will be an outstanding Chief Financial Officer and will continue to be an important member of our management team. We also look forward to Denny's participation on the Board." Mr. Lee said, "I am excited to take on this responsibility and look forward to my expanded role in the company and the challenges that it will bring." SINOFIT (HK): Winding Up Sought by Full Gain -------------------------------------------- Full Gain Investment Limited is seeking the winding up of Sinofit (HK) Limited. The petition was filed on February 6, 2002, and will be heard before the High Court of Hong Kong on May 22, 2002. Full Gain holds its registered office at 6th Floor, World Wide House, 19 Des Voeux Road, Central, Hong Kong. SUN FAI: Hearing of Winding Up Petition Set ------------------------------------------- The petition to wind up Sun Fai Printing and Dyeing Factory Limited is scheduled for hearing before the High Court of Hong Kong on May 8, 2002 at 9:30 am. The petition was filed with the court on January 31, 2002 by Pang Toi Kok of Room 1916, Mui Yuen House, Chuk Yuen North Estate, Wong Tai Sin, Kowloon, Hong Kong. ================= I N D O N E S I A ================= BENTALA KARTIKA: Disposes of Shares to Reduce Loan Balance ---------------------------------------------------------- PT Bentala Kartika Abadi (PT BKA) is one of the holding company established by Indonesia Bank Restructuring Agency (IBRA) pursuant to the Shareholding Settlement Agreement between IBRA and the Danamon Group. PT BKA was established in relation to the agreement between Usman Admadjaja (Shareholder) and IBRA with regards to loans extended by Bank Danamon to companies affiliated to the Shareholder. As part of the refinancing agreement with IBRA, the Shareholder transferred numerous shares in operating companies to PT Bentala Kartika Abadi, which pledged the shares to IBRA as a source of repayment to BPPN/the government. The Indonesian Bank Restructuring Agency (IBRA) and PT Bentala Kartika Abadi (BKA) announced to dispose all of its shares in PT Alfindo Mercu Estate (PT AME), one of the operating companies held by PT BKA. The disposal proceeds will be used to reduce the Bentala Group Loan to IBRA. PT AME, a single asset company owns highly potential commercial land bank, which is strategically located within the central business district (CBD) Jakarta. The land is 6,227- square meter and is located along Jalan Garnisun No. 5, South Jakarta, which is part of the Kota Anggana Danamon office complex with a possibility to be accessed through the complex. The land is equipped with a development approval for high-rise commercial building up to 24-story. PT AME owns a license that allows them to operate as a general contractor, real estate developer and agent, technical building consultant, property management, and property advisor. Ray White Commercial, a division under Ray White Indonesia, act as the selling agent and disposal advisor for the transaction. Further questions regarding disposal process of PT AME disposal should be addressed to Ferry Supandji from Ray White Commercial. Other information regarding sales schedule and procedure will be announced immediately. PERTAMINA TBK: U.S. Court Issues Contempt Order ----------------------------------------------- A U.S. District Court in Houston, Texas, issued a contempt order on Tuesday against Pt Pertamina Tbk, Indonesia's national energy company, for violating a U.S. court order. Pertamina failed to withdraw a request to a Jakarta court to halt worldwide enforcement of a $261 million judgment against it. The contempt finding stems from a December 2000 award to Karaha Bodas Company by arbitrators in Switzerland working under United Nations Commission on International Trade Law rules. Swiss courts refused Pertamina's request to set the award aside. The U.S. federal court in Houston, Texas, entered a court judgment confirming the arbitration award and Pertamina is appealing the judgment to a U.S. court of appeals. Courts in Singapore and Hong Kong have recently entered similar judgments. Pertamina, however, has refused to pay the award or the judgments. As a result of the U.S. judgment, Karaha has begun the process of seizing Pertamina's assets, and Bank of America and Bank of New York have now frozen over $200 million of Pertamina's assets in New York. In response to Karaha's efforts to collect its debt, Pertamina in mid-March filed a lawsuit in Jakarta against Karaha, asking the Jakarta court to issue an injunction ordering Karaha to stop its worldwide efforts to collect the $261 million. "Indonesian companies such as Pertamina and PLN have been severely criticized in the past for their attempts to use Indonesian courts to interfere with independent international arbitrations," said Christopher F. Dugan, Karaha's counsel, "and this appears to be another example. Pertamina agreed to international arbitration, and it should keep its promises to respect that process and pay the award, instead of flouting the rule of law." In response to Pertamina's Indonesian lawsuit, Karaha on March 29 asked the U.S. court in Houston for a temporary injunction against Pertamina. The U.S. court agreed that Pertamina's actions were improper, and it ordered Pertamina to withdraw its request to the Indonesian court for an injunction against Karaha. However, Pertamina did not withdraw its request to the Indonesian court. The Indonesian court granted the injunction Pertamina requested, and imposed a fine of $500,000 a day on Karaha, payable to Pertamina. Pertamina's President Director Baihaki Hakim claimed: "We have won the case, so that the execution of the claim cannot be done because based on Indonesian law, the claim must be processed here in Indonesia." Dugan responded: "We don't believe the Indonesian court has any jurisdiction over the international arbitration. In fact, the very purpose of Karaha's arbitration agreement with Pertamina was to keep any dispute out of Indonesia's courts, and instead put it before a neutral tribunal." Facing a $500,000 a day fine, Karaha asked the Houston court to hold Pertamina in contempt for its failure to withdraw its request for the Indonesian injunction. On April 2, after a hearing, the Houston court found Pertamina in contempt, and ordered it to indemnify Karaha for any fines imposed on it. "It's extraordinary for a U.S. court to find a civil party in contempt, and it does so only when a party's actions are extreme and egregious," said Dugan. "This shows once again that Pertamina and Indonesia appear to be willing to do whatever they can to avoid their legal obligations. This must be another blow to Pertamina's reputation and to Indonesia's attempts to attract foreign investment. Pertamina should end this embarrassment by simply honoring its contract obligations and paying the award." Karaha, whose principal investors are two U.S. companies, FPL Energy LLC and Caithness Energy LLC, is an independent power developer that in 1994 entered into contracts with Pertamina and another Indonesian entity to develop the Karaha Bodas Geothermal Projects in Indonesia. Karaha invested over $100 million in developing the power projects, but in 1998 Indonesia suspended them. Unable to proceed, Karaha filed for arbitration in Switzerland, as contractually mandated. ========= J A P A N ========= ASAHI MUTUAL: Sees Rise in New Policy Contracts ----------------------------------------------- Ailing Asahi Mutual Life Insurance Co sees a 17 percent rise in new policy contracts in 2001 to March 31 from the previous year because of brisk sales of new life insurance products, Kyodo News reported Thursday. But the outstanding balance of policy contracts is projected to have tumbled by around 9 percent as cancellations increased due to growing customer concerns about the insurer's financial status. AOKI CORP: R&I Downgrades L-T Rating to C ----------------------------------------- Rating and Information Investment, Inc. (R&I) announced on April 1 that it has downgraded Aoki Corp's Long-term Bonds (2 series) to C from CC. RATIONALE: Aoki Corp. submitted a rehabilitation plan to the Tokyo District Court on March 6. The plan apparently set the recovery ratio for the bonds rated here at an extremely low level. Taking a cautious stance toward the recovery ratio, R&I downgrade the ratings for these two series of bonds from CC to C. When assigning bond ratings, R&I look at two issues: 1) bankruptcy risk -- the distance between the issuing company and bankruptcy; and 2) recovery risk -- the recovery ratio for bondholders following bankruptcy. R&I therefore announces a rating adjustment or the confirmation of the existing rating when the recovery ratio starts to become clear, in order to provide investors with the fullest information. In the case of Aoki, the bond repayment scheme looks set to have an extremely low recovery ratio, while interest payments are expected to be greatly reduced. R&I is therefore downgrading the rating from CC to C in the belief that it should be adjusted as soon as possible to reflect the reality of the situation. A bondholders' committee meeting will be held on May 16. R&I will continue to monitor developments as to whether the bondholders' meeting accepts the rehabilitation plan and whether the Tokyo District Court provides its acceptance. FUJITSU LTD: Freezes Planned March 2003 Wage Hike ------------------------------------------------- Fujitsu Ltd and its labor union decided to freeze the planned year to March 2003 wage hikes for some 36,000 union members for 5 months, following a weakening in its earnings, the Yomiuri Shimbun and AFX News reported Thursday. It will also slash extra pay on over-time work to 25 percent compared to the present 30 percent in the year to March 2003. The Company will also expand the 3 percent pay cut now applied only to department chiefs and higher-ranked managements to include section chief level staff. TCR-AP reported that Fujitsu Limited and wholly owned manufacturing affiliate, Yonago Fujitsu Ltd., announced on March 22 a reorganization of Fujitsu's liquid crystal display (LCD) business. Reflecting a comprehensive reassessment of the business in conjunction with Fujitsu's overall corporate restructuring initiative announced last August. MATSUSHITA ELECTRIC: Cuts Earnings Forecast ------------------------------------------- Matsushita Electric Works Ltd, maker of building materials and lighting equipment, has cut its group earnings forecast for the business year to Nov 30 because of sluggish revenues both at home and abroad, according to Kyodo News Thursday. Behind the poor revenues are larger-than-expected declines in the market for owner occupied houses, which is the Company's primary source of income, and the slow recovery in the global information technology sector. TCR-AP reported in February that Matsushita Electric Industrial's 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 Y265 billion net loss for 2001-02. NIPPON TELEGRAPH: Amends FY02 Financial Results ----------------------------------------------- Nippon Telegraph and Telephone Corporation (NTT) on Thursday amended its projected consolidated financial results for fiscal year 2002 (April 1, 2001 through March 31, 2002). The projected financial results for fiscal year 2002 for Nippon Telegraph and Telephone East Corporation (NTT East), Nippon Telegraph and Telephone West Corporation (NTT West), NTT Communications, and NTT DoCoMo have also been amended respectively, as attached. 1. NTT has amended its projected consolidated financial results for fiscal year 2002 (April 1, 2001 through March 31, 2002), as follows: Projected Consolidated Financial Results for Fiscal Year 2002 (April 1, 2001-March 31, 2002) In Million Yen Operating Revenues Recurring Profit Net Income Before Amendment (A) 11,812,000 665,000 (331,000) After Amendment (B) 11,812,000 665,000 (865,000) Increase (Decrease)(BA) 0 0 (534,000) Percentage Change (%) 0.0% 0.0% (161.3%) (Ref) Fiscal Year 2001 Result 11,414,181 726,041 464,073 Note Extraordinary Loss in Billion Yen Losses related to overseas investments 1,403 billion Losses related to Verio Inc. 538 billion Impairment on AT&T Wireless Securities 506 billion Impairment on KPN Mobile Securities and Others 359 billion Structural reform changes for NTT East/NTT West 692 billion 2. Reasons for the Above Amendments The projected consolidated financial results have been revised due to impairment on overseas investments of NTT DoCoMo and NTT Communications and to additional structural reform charges for NTT East and NTT West. For more information check the projected Consolidated Financial Results for NTT East, NTT West, NTT Communications, and NTT DoCoMo for Fiscal Year 2002 at http://www.ntt.co.jp/news/news02e/0204/020404_1.html NTT WEST: Introducing Major Reorganization Plan in May ------------------------------------------------------ Nippon Telegraph and Telephone Corp unit NTT West Corp announced a major reorganization plan to be introduced on May 1, Kyodo News said Thursday. The scheme features the consignment of sales and facility maintenance to its units. Under the new system, the Osaka-based firm serving western Japan will transfer sales operations to NTT Marketing Act and facility maintenance works to NTT Neo Mate. Both are wholly owned NTT West units. SNOW BRAND: Faces Earlier De-listing ------------------------------------ The Tokyo Stock Exchange will delist Snow Brand Foods Co. from its second section on April 30, instead of the initially planned May 23, the Japan Times reports. The last day the Company's shares will be traded at the TSE will be April 29, the report adds. The decision was made in reaction to the Company's announcement Tuesday to dissolve on April 30. * S&P Downgrades Two Japanese General Trading Companies ------------------------------------------------------- Standard & Poor's announced on April 3 that it had lowered its ratings on two major Japanese general trading companies, Mitsubishi Corp. and Marubeni Corp., reflecting the decline in their credit strength amid adverse economic and credit market conditions in Japan. Standard & Poor's also said it had affirmed its short-term ratings on three other general trading companies, Mitsui & Co. Ltd., Sumitomo Corp., and Itochu Corp., whose credit strength has remained within the current rating parameters. The outlook for credit quality in the industry as a whole is negative. The long-term rating on Mitsubishi was lowered to triple-'B'- plus from single-'A'-minus and the short-term rating affirmed at 'A-2'. The outlook on the long-term rating is nega7tive. The short-term rating on Marubeni was lowered to 'C' from 'B' and removed from CreditWatch, where it was placed on Feb. 27, 2002. At the same time, the 'A-2' short-term ratings on Mitsui and Sumitomo, and the 'B' short-term rating on Itochu were affirmed. The rating adjustments reflect Standard & Poor's view that weak demand, deteriorating credit quality in the industrial sector, a frail banking sector, and a deflationary environment in Japan have diminished the credit strength of the country's general trading companies. If credit market and economic conditions do not improve, the credit quality of all general trading companies could come under further pressure. The vulnerability of the firms to asset write-downs--in the event of bankruptcies or debt restructuring in the corporate sector, or as a consequence of general price deflation--is compounded by their substantial use of debt financing. "General trading companies are insufficiently capitalized with regard to the nature of the risks they take," said Takahiro Saimen, a credit analyst at Standard & Poor's in Tokyo. "Their credit quality is also being pressured by an increasing strategic focus on long-term lending and investment activities, which is not being balanced by a commensurate build-up of their highly leveraged equity bases," he added. Continuing deflation will increase the real cost of debt and require higher provisioning, weakening the profitability of general trading companies and impairing their ability to reduce their debt leverage. The three strongest trading companies, Mitsubishi, Mitsui, and Sumitomo, are expected to maintain adequate credit quality in the foreseeable future. However, they face the double challenge of strengthening their finances while expanding into new businesses with better growth prospects but generally higher risks than their traditional trading operations. "Because the companies have focused their investments in sectors close to their trading businesses, and have recently made improvements to their risk management systems, the asset quality problems of the leading general traders are not as severe as those in the banking sector," said Mr. Saimen. "However, these advantages are offset by the risk associated with their significant long-term investments in businesses and joint ventures." The downward revision of Mitsubishi's long-term rating was a result of Standard & Poor's more negative outlook for credit quality in the general trading industry. For Marubeni, in addition to these industry wide factors, the downgrade of its short-term rating was based on concerns that the company will face higher borrowing costs and fewer funding options following a huge loss in fiscal 2001, owing to its highly leveraged balance sheet. Continued access to bank funding will be critical to the success of Marubeni's increasingly urgent efforts to restructure its operations and reduce its debt. Itochu's capital structure has improved as a result of its timely and drastic fixed-asset restructuring. However, the company's still weak capital structure and relatively high exposure to the construction and real estate businesses leave it vulnerable to the current economic environment. ========= K O R E A ========= DAEWOO MOTOR: Creditors Finalizing Deal With GM ----------------------------------------------- Daewoo Motor Co said the final contract to sell the truck maker to General Motor (GM) is likely to be signed on April 15-20, as the negotiating parties have mostly resolved their differences over the details, Seoul Economic Daily and AFX News reported Thursday, citing an unnamed creditor bank official. Regarding interest rates on the US$2 billion loan which creditors agreed to extend to GM after its takeover of Daewoo, both parties decided not to change the clauses of the memorandum of understanding (MOU), which stipulate that GM will have to pay the prevailing market interest rate for US$1.25 billion and 6 percent for the remaining 750 million. Both companies agreed that GM will take over 12-13 overseas operations in return for GM assuming US$834 million in obligations owed by Daewoo's foreign branches. HANVIT BANK: Shareholders Meeting Approves FY01 Report ------------------------------------------------------ Hanvit Bank held its fiscal 2001 regular general shareholders meeting on March 20 to appoint non-standing directors and approve the financial statements of fiscal 2001. As new non-standing directors, Mr. Young Ha Kim, an editorial writer of Chosun Ilbo, Mr. Young Yong Kim, an auditor to Korean committee of IPI, and Mr. Taek Soo Han, an adviser to Kim & Chang were appointed. In non-standing directors whose term expired, Mr. Dai Hwan Kim, the president of Seowon Mulsan, Mr. Sang Im Park, a professor at Suwon University, and Mr. Joon Ho Hahm, a professor at Yonsei University extended their term. In that meeting, Hanvit Bank also approved the financial statements of fiscal 2001 and changed its articles of incorporation in parts as changing the executive's title and abolishing stock option, etc. DebtTraders reports that Hanvit Bank's 12.750 percent bond due in 2010 (CMBK10KRS2) trades between 115.750 and 116.750. For real-time bond pricing go to http://www.debttraders.com/price.cfm?dt_sec_ticker=CMBK10KRS2 HYNIX SEMICON: Creditors Deliver Counter Proposal to Micron ----------------------------------------------------------- Creditors of Hynix Semiconductor Inc. delivered on Tuesday a counterproposal regarding the sale of its assets to the US firm Micron Technology that may lead to the final settlement stage, Asia Pulse said Thursday. The counterproposal agrees to fresh funding of US$1.5 billion requested by Micron at LIBOR (London Interbank Offered Rate) plus 2 percent, but no higher than 6 percent, over seven years. HYUNDAI MERCHANT: Widens FY01 Net Loss To W319B ----------------------------------------------- Hyundai Merchant Marine (HMM) posted a net loss of W319 billion in 2001 versus a W310 billion loss a year earlier, due to a lower freight rates compounded by a weak won, Imail reported Thursday. Operating profits slumped to W309.2 billion compared with 457.8 billion won in 2000. At the end of 2000, Hyundai Merchant Marine Co., Ltd. had negative working capital, as current liabilities were W3.25 trillion while total current assets were only W1.88 trillion. MEDISON CO: Faces Delisting from KSE ------------------------------------ Medical equipment supplier Medison Co. is likely to face delisting from the Korea Stock Exchange due to a disclaimer opinion by its external auditor on its financial statements, Korea Herald reported last week. Samil Accounting Co., Medison's auditor, has issued a "disclaimer of opinion" to the Company. Samil said that it could not gather materials for an accounting audit from the company. A disclaimer opinion is an auditor's statement disclaiming any opinion regarding the Company's financial condition due to an inability to gather certain relevant facts. The ailing medical equipment firm went bankrupt last January, got a nod from the court to seek court receivership in early April. =============== M A L A Y S I A =============== ASSOCIATED KAOLIN: Awaits SC's Nod on Proposals ----------------------------------------------- Associated Kaolin Industries Berhad (AKI), further to its announcement on 12 March 2002, announced that the Ministry of International Trade and Industry (MITI) had stated that MITI has no objection for AKI to undertake the Proposed Corporate and Debt Restructuring Scheme (Proposals) subject to the following conditions: (i) the approval of the Securities Commission (SC) being obtained; (ii) the approval of the Foreign Investment Committee (FIC) being obtained; (iii) the SBI involving the issue of up to 25,000,000 new Greatpac Holdings Bhd (GHB) Shares are treated as SBI Shares of which the allocation of the same will be determined separately by MITI after the SC's approval on the Proposals has been obtained; and (iv) GHB is required to inform the MITI on the actual equity structure upon the implementation of the Proposals. The FIC had, via its letter dated 21 January 2002, stated that the FIC has no objection for AKI to undertake the Proposals. The approval from the Securities Commission for the Proposals is still pending. EMICO HOLDINGS: Authorities Proposal Approval Pending ------------------------------------------------------ Affin Merchant Bank Berhad (Affin Merchant), on behalf of the Board of Directors of Emico Holdings Berhad, had announced the submission of the Proposed Debts Restructuring Scheme, Proposed Two-call Rights Issue and Proposed Employee Share Option Scheme to the Securities Commission, Foreign Investment Committee and Ministry of Trade and Industry for their consideration. On 28 February 2002, Affin Merchant had announced a Revised Proposed Rights Issue and Proposed Increase in Authorized Share Capital (Revised Proposal). The Revised Proposal was submitted to Securities Commission on 8 March 2002. Presently, the Company has yet to receive approval from the above relevant authorities and there has been no change to the status of Emico's plan to regularize its financial position as announced earlier. HIAP AIK: Appoints Special Administrators ----------------------------------------- Hiap Aik Construction Berhad made the following announcement in relation to the appointment of Special Administrators as required under Chapter 9 of the KLSE Listing Requirements to Hiap Aik Construction Berhad: Details of the event leading to the appointment of Special Administrators The Company is in default of its loans obligations. The appointment of Special Administrators under this circumstance is provided under the Pengurusan Danaharta Nasional Berhad Act 1998. Danaharta's Oversight Committee, a three member committee with one representative each from the Ministry of Finance, Securities Commission and Bank Negara Malaysia, has approved the appointment. L&M CORP.: Defaulted Interest Payment Stands RM191,779,703.30 ------------------------------------------------------------- The Board of Directors of L & M Corporation (M) Bhd (L&M) updated on the default in payments by the L&M Group. As at 31st March 2002, the total default payments to financial institutions in respect of various credit facilities by L&M Group is RM191,779,703.30. There is no further new development since the previous announcement with regard to the steps taken to address the default, except L&M and its wholly owned subsidiary, L&M Geotechnic Sdn Bhd had been granted a further extension of Restraining and Stay Order for a further period of six (6) months commencing from 30 March 2002 till 30 September 2002 by the High Court of Malaya on 25 March 2002. LIEN HOE: April 19 EGM Proposed Shares Disposal ----------------------------------------------- Lien Hoe Corporation Berhad (Lien Hoe or Company) advised that an Extraordinary General Meeting of the Company will be held at Laksamana Ballroom, Hotel Armada, Lorong Utara C, Section 52, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia, on Friday, 19 April 2002 at 10.00 a.m. for the purpose of considering and, if thought fit, passing, with or without modifications, the following resolution: ORDINARY RESOLUTION Proposed disposal of 75,000,000 ordinary shares of RM1.00 each representing the entire equity interest in Holiday Plaza Sdn Bhd to Windigold Sdn Bhd for a consideration of RM92,153,440 to be satisfied by cash of RM7,942,320 and assumption of liabilities of RM84,211,120 "THAT, approval be and is hereby given for the Company to dispose of 75,000,000 ordinary shares of RM1.00 each representing the entire equity interest in Holiday Plaza Sdn Bhd for a consideration of RM92,153,440 to be satisfied by cash of RM7,942,320 and assumption of liabilities of RM84,211,120 upon the terms and conditions as contained in the Conditional Sale and Purchase Agreement dated 7 January 2002 between the Company and Windigold Sdn Bhd and THAT authority be and is hereby given to the Directors of the Company to take all such steps and to enter into and execute all commitments, transactions, deeds, agreements, arrangements, undertakings, indemnities, transfers, assignments and guarantees as they may deem fit, necessary, expedient and/or appropriate in order to implement, finalize and give full effect to the aforesaid disposal with full power to assent to any conditions, modifications, revaluations, variations including but not limited to the aforesaid disposal consideration and/or amendments as may be required by any relevant authority/authorities." Profile Originally the Company (LHC) and its subsidiaries were engaged in the manufacture and trading of building materials. In 1982 and 1983, Peak Hua Holdings Bhd (PHH), a company involved in real estate and securities investment, acquired the majority shareholding in LHC. LHC then embarked upon a restructuring exercise, which resulted in diversification into property development in June 1983. Distribution of scientific/medical supplies was added in mid 1988 as was the manufacture of kitchen cabinets and knock down furniture. In 1988 the Company ceased to be a subsidiary of PHH. Subsequent to a scheme of financial restructuring in 1990, LHC branched into property investment and management through acquisitions. Over the years, LHC has also ventured into timber logging and hotel property. Currently, the Group is in the process of implementing a proposed restructuring scheme which comprises capital reduction and share consolidation; acquisition of Billiontex Industries Sdn Bhd, Rusella Teguh Sdn Bhd and Atria Properties Sdn Bhd; restricted offer for sale; debt restructuring; and rights issue of warrants. The SC on 30 May 2000 and shareholders of the Company approved the scheme on 23 November 2000. MALAYSIAN RESOURCES: Unit Winding Up Petition Withdrawn ------------------------------------------------------- Malaysian Resources Corporation Berhad (MRCB or the Company), further to its announcement on 28 March 2002 in respect of the winding-up petition against MRCB Construction Sdn. Bhd. (MCSB), a wholly-owned subsidiary of MRCB, announced that TSI Trading & Distribution Sdn. Bhd. has withdrawn their winding-up petition against MCSB. MGR CORPORATION: Resolutions Passed at EGM ------------------------------------------ MGR Corporation Berhad informed that the following resolutions put to the Extraordinary General Meeting of the Company on 30 March 2002 were passed without modifications: Special Resolution 1 Proposed Adoption of New Articles of Association "That the Articles of Association set out in Appendix II of the Company's Circular to Shareholders dated 8 March 2002 be and is hereby adopted as the new Articles of Association of the Company in substitution for and to the exclusion of the existing Articles of Association of the Company." Ordinary Resolution 1 Proposed Shareholders' Mandate for Recurrent Related Party Transactions "That the Company and/or its subsidiaries be and are hereby authorized to enter into recurrent related party transactions of a revenue or trading nature with Related Parties as specified in Section 3.2 Table A1 of the Circular to the Shareholders dated 8 March 2002, provided that such arrangement and/or transactions are necessary for the Group's day-to-day operations in the ordinary course of business on normal commercial terms which are not more favorable to the related party than those generally available to the public and not detrimental to the minority shareholders of the Company AND THAT such authority shall continue to be in force until the conclusion of the next Annual General Meeting of the Company AND FURTHER THAT all such transactions entered into by the Company and/or its subsidiaries from 1 June 2001 to the date of this resolution as set out in Section 3.2 Table A2 of the Circular to the Shareholders dated 8 March 2002, be and are hereby approved, confirmed and ratified." Profile The Company (MGR) was engaged in sawn timber trading when it began operations in 1985. It later expanded into the sale of timber logs. In 1989, MGR ventured into downstream activities beginning with wood moldings. In mid-1996, MGR branched into the downstream processing of plain plywood and subsequently supplemented its furniture operation by moving into the manufacturing of doors. The acquisition of a sawmill in 1993 enabled the Company to capture foreign markets. Henceforth, high-end value-added wood moldings and interior furniture were manufactured for the European and American markets. On 4 August 2000, the financial institution lenders of the Company and its subsidiaries, Parakaya Plywood Sdn Bhd and Kimanis Bay Timbers Sdn Bhd, entered into a debt restructuring agreement with the Company, Parakaya, Kimanis and the Company's major shareholder and Managing Director, Mr Loi Lung Kiong, to restructure the outstanding bank borrowings of the Company, Parakaya and Kimanis. On 18 December 2000, the Company was asked to revise the restructuring scheme taking into account issues raised by the SC. The revised scheme was expected to be submitted tentatively by end of May 2001. On 5 April 2001, however, MGR's corporate adviser, CIMB resigned and consequently, withdrew the proposal to the SC on 11 April 2001. Presently, MGR is looking at various options on its corporate restructuring to be crystallized by the agreed May deadline. Thereafter, a new adviser will be appointed to finalize the scheme. PAN MALAYSIA: Proposal Completed -------------------------------- Pan Malaysia Holdings Berhad (PMH), further to the announcements on 20 December 2001, 14 February 2002 and 13 March 2002 concerning the Proposal, informed that the Proposal was completed on 2 April 2002 (the Date of Completion). With effect from the Date of Completion, PHR becomes a wholly- owned subsidiary of PMH. The "Proposal" refers to the following: (i) Acquisition by PMH of the Remaining 800,000 Ordinary Shares of RM1 each in Pengkalen Holiday Resort Sdn Bhd (PHR) From Lai Sun Development Company Limited (Lai Sun) for a Cash Consideration of RM1 (ii) Acceptance of the Assignment of Debt Owed by PHR to Lai Sun for a Cash Consideration of Rm549,998. RAHMAN HYDRAULIC: Writ of Summon Pre-Trial Set on June 17 --------------------------------------------------------- Rahman Hydraulic Tin Berhad (Special Administrators Appointed) (the Company), further to the announcement dated 25 March 2002 regarding the Writ of Summons issued by the High Court of Malaya at Kuala Lumpur, Suit No. D4-22-988 Year 2001, announced that Mr Leong Yew Chin has filed an appeal against the decision of the Deputy Registrar to allow the striking-out of the Statement of Claim and Writ of Summons with costs. The matter is fixed for pre-trial case management on 17 June 2002. RHB CAPITAL: Discloses Shares, Warrants Dealings ------------------------------------------------ Arab-Malaysian Merchant Bank Berhad (Arab-Malaysian), on behalf of RHB Capital Berhad (RHB Capital), pursuant to Section 36 of the Malaysian Code on Take-overs and Mergers, 1998, disclosed the following dealings in the shares and warrants of RHB Capital. The details of which are set out in Table 1 found at http://www.bankrupt.com/misc/TCRAP_RHB0408.doc,based on the information furnished to Arab-Malaysian by Sumitomo Mitsui Banking Corporation (SMBC) through RHB Capital. Neither Arab- Malaysian nor RHB Capital shall be responsible for the accuracy of the said information. As a result of the said dealings, SMBC now holds 13,808,778 RHB Capital shares and 750 RHB Capital warrants and ceases to be a substantial shareholder of RHB Capital. RNC CORPORATION: Provides PRS Status Update ------------------------------------------- RNC Corporation Berhad provided an update on the status of the Proposed Corporate and Debt Restructuring Scheme (PRS) as of April 1, as follows: (a) The Scheme is still pending the approval of the Kuala Lumpur Stock Exchange (KLSE) for the listing and quotation of the ordinary shares, Redeemable Convertible Secured Loan Stocks (RCSLS) and Redeemable Convertible Unsecured Loan Stocks (RCULS) on the Main Board of KLSE pursuant to the PRS; and (b) The Special Administrators and Affin Merchant Bank Berhad are in the midst of finalizing an Information Circular detailing the approved PRS, which will be sent out to shareholders in due course after the receipt of clearance from the KLSE on the content of the circular. KLSE has approved the application for an extension of time until 30th June 2002 for the following: (a) to amend the Articles of Association; and (b) to obtain a general mandate for recurrent related party transactions of a revenue or trading nature. SASHIP HOLDINGS: Workout Scheme Petition Filing Pending ------------------------------------------------------- The Board of Directors of Saship Holdings Berhad (SHB or the Company), further to the announcement on the implementation of the Restructuring Scheme under Section 176 of the Companies Act, 1965 made on 1 March 2002, informed that the Restructuring Scheme under Section 176 of the Companies Act, 1965 is pending for filing of Petition to the Court for sanction and approval of the Restructuring Scheme. TIMBERMASTER INDUSTRIES: Unit SPA With White Knight Likely ----------------------------------------------------------- Timbermaster Industries Berhad (Special Administrators Appointed) (TMIB or the Company), further to its announcement on 1 March 2002, announced that the Kuala Lumpur Stock Exchange (KLSE) had by its letter dated 7 March 2002 granted the Company until 31 March 2002 to make the Requisite Announcement (RA). The Company however appealed to the KLSE on 18 March 2002 for a further extension of time until 7 May 2002 to make the RA under PN 4 as the white knight of TMIB had requested an extension of time until 30 April 2002 to comply with the conditions precedent set out in the Memorandum of Understanding dated 14 August 2001. Currently, KLSE's consideration of the further extension of time until 7 May 2002 for the Company to make the RA is still pending. In the meantime, as part of TMIB's restructuring exercise involving the following subsidiaries: * Kompleks Perkayuan Timbermaster Smallholders Sdn Bhd (Special Administrators Appointed) (KPTS) The SA is now close to signing the Sale and Purchase Agreement (SPA) with a white knight in respect of the sale and purchase for the assets in KPTS. * Timbermaster Timber Complex (Sabah) Sdn Bhd (Special Administrators Appointed) (TMTC) The SA is finalizing the terms and conditions of the Share Sale Agreement (SSA) with a white knight for the sale and purchase of the entire issued and paid up capital of TMTC pursuant to a Memorandum of Understanding dated 20 July 2001. ===================== P H I L I P P I N E S ===================== INTERNATIONAL CONTAINER: Clarifies Debt Level Report ---------------------------------------------------- International Container Terminal Services, Inc. clarified on March 27 that the debt level after the full redemption of the US$130 million convertible notes last March 12 dropped further to P2.5 billion, and not US$2.5 billion. It was an inadvertent typographical error. PHILIPPINE LONG: Bond Buyers Set Conditions on Bond Offering ------------------------------------------------------------ Prospective buyers of the planned US$350 million bond offer of the Philippine Long Distance Telephone Co (PLDT) have set three conditions before subscribing to the debt instruments, Manila Bulletin and AFX reported Wednesday, quoting PLDT President and CEO Manuel Pangilinan. The bond buyers require PLDT to have an EBITDA higher than what will be agreed upon to be able to incur new debts. The fund- raising plan must exclusively be for refinancing purposes and third, asset sales will only be allowed to pay existing debts. Pangilinan stressed that PLDT has not made any commitment to comply with them and said they were merely feedback from the market. The CEO emphasized that the prospective buyers were also pressing for an annual interest yield of around 11.85 percent to 12.25 percent on the bonds. DebtTraders reports that Philippine Airline's 7.601% floating rate note due in 2000 (PHPA00PHN1) trades between 3.5 and 6.5. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=PHPA00PHN1 PHILIPPINE LONG: Evaluating Financing Alternatives on Debt ---------------------------------------------------------- The Philippine Long Distance Telephone Co (PLDT) is still evaluating various financing alternatives of its debt as part of its liability management scheme, AFX News said Thursday. The Company will make an announcement when any material financing is completed. The Company issued the statement after a report that it is planning a road show in April for its US$500 million bond float. ================= S I N G A P O R E ================= EXCEL MACHINE: Clarifies Full Year Financial Statement ------------------------------------------------------ The Board of Directors of Excel Machine Tools Ltd (the Company), further to the Proforma Full Year Financial Statement and Dividend Announcement made on 29 March 2002 (the Announcement), further clarified and explained the following: 1. In respect of item 2(c) of the Announcement, the Group provided for specific doubtful debts of S$4.4 million on the recommendation of the auditors of our Hungary operation. Management has also decided on a write down of stock by S$2.4 million comprising a specific provision of S$1.7 million for slow moving stock and a general provision of S$0.7 million for components and machine spare parts. 2. In respect of item 8 of the Announcement, where it was stated that the Group "has entered into discussions with its banks for the continued support of the banks", the Company would highlight that there has been no breach of financial covenants on the part of the Group save for Excel Precision (Singapore) Pte Ltd (EPS), a wholly-owned subsidiary of the Company. EPS is required by one of its banks to maintain a minimum network of S$1 million at all times. As at 31 December 2001, EPS has a net worth of S$139,302. The Company is presently in discussion with the said bank for its continued support. 3. In respect of item 12(a) of the Announcement, out of the approximately S$65 million of current liabilities, the amount of bank borrowings repayable within one year totaled S$53.3 million. The Group is presently in discussion with its banks for their continued support, including inter-alia, restructuring the repayment of these short-term loans. 4. In respect of item 12(b) of the Announcement, there was an inadvertent error in that the comparison should be made against 30/06/2001 figures (instead of 30/06/2000). As such, the Group borrowings repayable after one year, which are secured should be S$16,573,000 (instead of S$ 27,884,389) as at 30/06/2001. L & M GROUP: Enters Oil Business Venture in Indonesia ----------------------------------------------------- L&M Group, further to the announcement made by L&M Group Investments Ltd (L&M) on the 3 April 2002, disclosed on Thursday that in the Joint Venture Agreement with Perusahaan Daerah Pembangunan Aceh (PDPA) and PT Teknodaya Reka Utama, L&M shall have a 25 percent interest in the joint venture company known as PT Petroleum Nanggroe Aceh Darussalam (PETRONAD). No commitment has been entered into as yet on the amount to be invested by L&M. The joint venture at this stage will not have any material impact on the net tangible asset or the profit of the Company. The Joint Venture Agreement provides that Mr Edward Seky Soeryadjaya, the Chief Executive Officer of L&M will be appointed the President Director of PETRONAD. Save as aforesaid, no director or substantial shareholder has any interest, direct or indirect in the Joint Venture Agreement. SEMBCORP LOGISTICS: Posts Notice of Shareholder's Interest ---------------------------------------------------------- Sembcorp Logistics posted a notice of change in The Capital Group Companies, Inc.'s interests: Date of notice to company: 04 Apr 2002 Date of change of deemed interest: 03 Apr 2002 Name of registered holder: DBS Nominees Pte Ltd Circumstance giving rise to the change: Sales in open market at own discretion Shares held in the name of registered holder No. of shares of the change: 67,000 Percentage of issued share capital: 0% Amount of consideration: S$2.221 No. of shares held before change: 56,171,400 Percentage of issued share capital: 6.60% No. of shares held after change: 56,104,400 Percentage of issued share capital: 6.59% Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 85,932,200 Percentage of issued share capital: 10.10 No. of shares held after change: 85,270,200 Percentage of issued share capital: 10.02 Total shares: 85,270,200 SembCorp Logistics Limited -- http://www.semblog.com/-- provides marine salvage, offshore supply base services, passenger ferry services, tug services for berthing and docking of ships, ocean towage, marine transportation and integrated logistics services. =============== T H A I L A N D =============== CHONBURI-INTER: Business Reorganization Petition Filed ------------------------------------------------------ Chonburi - Inter Company Limited (DEBTOR), engaged in developing and managing hotel businesses, filed its Petition for Business Reorganization to the Central Bankruptcy Court: Black Case Number 1214/2544 Red Case Number 1023/2544 Petitioner: CHONBURI CONCRETE PRODUCT COMPANY LIMITED Planner: CHONBURI - INTER PLANNER COMPANY LIMITED Debts Owed to the Petitioning Creditor: Bt294,353,966 Date of Court Acceptance of the Petition: October 5, 2001 Date of Examining the Petition: November 5, 2001 at 9.00 A.M. Court Order for Business Reorganization and Appointment of Planner: November 5, 2001 Announcement of Court Order for Business Reorganization and Appointment of the Planner in Matichon Public Company Limited and Siam Rath Company Limited: November 13, 2001 Announcement of Court Order for Business Reorganization and Appointment of the Planner in Government Gazette: November 29, 2001 Deadline for the Planner to submit the Reorganization Plan to the Official Receiver: March 1, 2002 Contact: Mr. Anusit Tel, 6792525 ext. 122 EASTERN PRINTING: Registered, Paid-up Cap Decrease Completed ------------------------------------------------------------ Eastern Printing Public Co., Ltd.(EPCO) has completed the legal process required for decreasing of the company's registered capital and paid-up capital as follows: 1. Decrease the number of outstanding common shares at ratio of 4 to 1 from 36 million shares to 9 million shares; resulting in the decreasing of the paid-up Capital from Bt360 million to Bt90 million. 2. Decrease the par value from Bt10 to Bt4 resulting in the decreasing of the paid-up Capital from Bt90 million to Bt36 million. The decrease of the company's registered capital and paid-up capital of the "EPCO" security in the trading system is effective from April 5, 2002 onwards. NATIONAL FERTILIZER: Unit Submits Debt Restructuring Plan --------------------------------------------------------- National Fertilizer Public Co., Ltd. informed that the Board of Directors' meeting no. 2/2545 on March 29, 2002 of Rayong Bulk Terminal Co., Ltd., a subsidiary that the company holds 56.25 percent of registered capital, passed the resolution to allow Rayong Bulk Terminal make debt restructuring agreement with four lenders, namely, Bangkok Bank Public Co., Ltd., The Industrial Finance Corporation of Thailand, The Siam Commercial Bank Public Co., Ltd., and Thai Asset Management Corporation. Total debts are Bt1,064 million and this debt restructuring of Rayong Bulk Terminal Co., Ltd. will provide the following effects to the Company: 1. As a result from such debt restructuring Rayong Bulk Terminal Co., Ltd. will be able to use its own cash flow from operation to run its business and does not have to depend on the parent company's increased capital. Therefore, financial burden of the company will end up, while it is facing with liquidity shortage problem. 2. Receiving privilege to pay interest at 1% p.a. depending on Rayong Bulk Terminal Co., Ltd's ability to repay interest will enable Rayong Bulk Terminal Co., Ltd. to choose paying interest at appropriate rate without being charged at default rate in case of its inability to service interest according to the agreement. Therefore, the Company will not absorb minority loss from Rayong Bulk Terminal Co., Ltd. which occurred from defaulted rate in case that Rayong Bulk Terminal Co., Ltd could not service interest according to the agreement. 3. The Company will not loose any right to manage or to reduce its minority interest in Rayong Bulk Terminal Co., Ltd. * FRA Accomplishes Liquidating 56 Suspended Companies ----------------------------------------------------- Mr. Kamol Juntima, Chairman of the Financial Sector Restructuring Authority (FRA), said in a press conference on April 3,2002 that the FRA has accomplished its mission in liquidating the 56 suspended finance companies under its supervision after the Central Bankruptcy Court declared Finance One Plc., the last suspended company, bankrupt and put it under absolute receivership on April 1,2002. The FRA is now preparing for its own liquidation. All the documents on its operations will be systematically kept as an archive for future studies. In May 2002 FRA Board will report to the Minister of Finance to recommend to the Cabinet to dissolve the organization by virtue of Section 41 of the Emergency Decree on Financial Sector Restructuring B.E.2540. Mr. Kamol said the FRA has fulfilled its three main objectives: 1. To rehabilitate 58 Suspended Companies; 2. To assist bona fide depositors and creditors of the Suspended Companies; and 3. To administer the liquidation process of the Suspended Companies whose operations are no longer viable. The FRA Board approved two rehabilitation plans submitted by Kiatnakin Finance and Securities Plc. and Bangkok Investment Plc., which were allowed to resume their business operations in April 1998. The 56 other suspended companies whose rehabilitation plans were rejected were to be liquidated under the FRA procedures. Under the FRA's liquidation process, the assets of the 56 Suspended Companies were auctioned off and the proceeds from the asset sales were distributed to creditors of each suspended company in accordance with the FRA's procedures. The liquidated companies were then brought into the Bankruptcy Process under the Bankruptcy Act, with the remaining assets of such companies to be handled by the Official Receiver. Mr. Kamol noted that the FRA process benefited both creditors and debtors of the 56 suspended companies. "Under the FRA's liquidation procedures, the creditors were repaid in a short time with little cost. This would provide them with new money for investments. The debtors were likewise helped with hair cut or other forms of debt restructuring," said Mr. Kamol. 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 members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***