/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/020509.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 Thursday, May 09, 2002, Vol. 5, No. 91 Headlines A U S T R A L I A AQUARIUS PLATINUM: Obtains SA Assets Ratiocination Approvals BALLARAT GOLDFIELDS: Obtains New Loan From Eureka CMG CH: Net Asset Value at A$0.71 Per Share HILLGROVE GOLD: Plans To Execute Deed of Company Arrangement HOTHAM WINES: Changes Name, Completes Capital Raising TERRAPLANET LIMITED: Capital Raising Completion Successful UNITED MEDICAL: NSW Court Appoints Provisional Liquidator UTILICORP ASIA: Holding Companies on Creditwatch Negative VOICENET (AUST): May 31 AGM Scheduled VOICENET (AUST): Reaches Debt Settlement Agreement With WBWA C H I N A & H O N G K O N G CELESTIAL ASIA: Exceptional Price & Turnover Unexplainable ONWAY KNITTING: Winding Up Petition Set for Hearing PEARL ORIENTAL: Shareholders Approve Resolutions at SGM WINWAY H.K: Winding Up Petition to be Heard I N D O N E S I A ASTRA INTERNATIONAL: Debt Rescheduling Likely ASTRA INT'L: Rights Offer Best Way to Cut Debt, Says Analyst J A P A N ALL NIPPON: Moody's Considers Cutting Rating to Junk Status DAI-ICHI KATEI: CCC Wins Rights to Sponsor Rehab Efforts HITACHI LTD: To License Technology to Chinese Rivals MATSUSHITA ELECTRIC: Plans Drug Discovery Tech With Tensor MIZUHO HOLDINGS: FSA Looks Into Computer Fiasco MIZUHO HOLDINGS: Gives FSA Computer Investigation Report MIZUHO HOLDINGS: Glitches May Delay Branch-Cutting Plan NIPPON TELEGRAPH: Use of U.S. Accounting Standards Likely OMRON CORPORATION: Improve Restructuring SNOW BRAND: Employees Launch Reform Campaign SNOW BRAND: Falls on Restructuring Report SOFTBANK CORP: Smart Firm Cedes Management Control to Karino K O R E A DAEWOO MOTOR: Local Market Share Crashes in April HYNIX SEMICON: May Face Prepackaged Bankrupty HYNIX SEMICON: Urged to Accept Breakup or Face Bankruptcy HYUNDAI MOTOR: Daimler Rules Out Platform Sharing SHINHAN BANK: FSS to Inspect 7 Group Units M A L A Y S I A AOKAM PERDANA: Seeks Two-Month Time Regularization Extension ASIAN PAC: Provides Debt Restructuring Exercise Status Update KUALA LUMPUR: FIC Approves Proposed Corp, Debt Restructuring PSC INDUSTRIES: Restraining Injunction Hearing Fixed on June 13 RENONG BERHAD: ROC Gets RM770,000 Advance for Working Capital RNC CORPORATION: SC OKs Proposals Implementation Time Extension S P SETIA: Call, Put Option Period Expired SATERAS RESOURCES: Adviser Works on New Proposed Workout Scheme SITT TATT: Changes Company Secretary SPORTMA CORPORATION: Gets MITI's Nod on Proposals Amendment TIMBERMASTER INDUSTRIES: Seeks KLSE's RA Extension Approval * CDRC Releases Status Report as at 31 March 2002 P H I L I P P I N E S NATIONAL BANK: BSP Sets Deadline to Submit Revised Rehab Plan PHILIPPINE AIRLINES: Resumes Flight to Tagbilaran S I N G A P O R E ASIA PULP: Readies Response to Creditors T H A I L A N D COGENERATION PUBLIC: Repurchases Remaining ECDs From Tractebel MEDIA OF MEDIAS: Posts Business Rehabilitation Plan Amendments SINO-THAI: Unit Receives Bt50M Financial Aid from Perpetual SRIVARA REAL: Releases Reorganization Plan Progress Report THAI CHEW: Files Business Reorganization Petition * DebtTraders Real-Time Bond Pricing - - - - - - - - ================= A U S T R A L I A ================= AQUARIUS PLATINUM: Obtains SA Assets Ratiocination Approvals ------------------------------------------------------------ Aquarius Platinum Limited (Aquarius) announced on Tuesday that it has received the requisite Aquarius and Kroondal Platinum Limited (KPM) shareholder approvals and ail necessary regulatory approvals to facilitate the rationalization of its South African assets, most notably the Section 39 permission of the South African Revenue Services and exchange control approval from the South African Reserve Bank. Shareholders of Aquarius have overwhelmingly approved the restructure at a meeting of shareholders held on Monday 29 April. The impact of these approvals has cleared the way for the implementation of the restructure and refinancing agreements between the Aquarius Group of companies, Impala Platinum Holdings Ltd (Implats) and Investec Bank Ltd (Investec). Aquarius is pleased to announce that the US$40 million loan agreement was signed on Tuesday 30 April. Following the rationalization of the Group, Aquarius retains a 75 percent interest in its South African subsidiary Aquarius Platinum (South Africa) (Pty) Limited (AQPSA) with its partner Implats holding the remaining 25 percent in AQPSA. AQPSA, the operating arm of the Aquarius group, owns and operates the Kroondal mine, the Marikana mine - which is currently being constructed - the Everest South project - which is in feasibility study mode - and the Everest North and Chieftain Plains prospects. Stuart Murray, Chief Executive Officer said, "This marks the culmination of 18 months of hard work to deliver a refined structure for the group that will be more clearly understood by our shareholders and importantly provides the necessary structure to support the finance for us to complete the Marikana platinum mine and places us on a sound financial footing for the future." BALLARAT GOLDFIELDS: Obtains New Loan From Eureka ------------------------------------------------- Ballarat Goldfields NL (ASX code BGF) advises that it has entered into an agreement with Eureka Capital Partners Ltd (Eureka) dated 3 May 2002 which provides for Eureka to lend $300,000 to BGF on normal terms and conditions. Eureka is associated with Rexadis Pty Ltd, to whom BGF has agreed to sell its gold assets, subject to shareholder approval at the 28 May 2002 general meeting. BGF is pleased that Eureka has seen fit to support BGF with this working capital facility which provides the Company with liquidity prior to its anticipated receipt of proceeds from the recent German litigation. The first drawdown of one third of the loan amount will be provided by 6 May 2002. The balance will be provided on completion of loan documentation, and on Eureka being satisfied that BGF will be solvent and will be reasonably likely to be able to continue trading normally. The terms of the loan agreement include the following: I. It is secured by a first ranking fixed and floating charge over the assets of BGF. II. Interest on the loan will be the ANZ 90 day bank bill rate plus 3%, payable quarterly in arrears. The interest rate shall be determined on the first business day of each quarter and shall be notified by Eureka to BGF. Interest shall be payable on the last business day of each calendar quarter. III. BGF shall not borrow more than $0.25 million while the loan is outstanding unless the loan proceeds and any outstanding interest is fully repaid from the proceeds of the borrowing. IV. The loan and any outstanding interest is to be repaid from any proceeds received: a) by or on behalf of BGF from any equity issue by BGF during a period of 12 months from the date of the loan b) by or on behalf of BGF or its subsidiaries, Oztrak Group Pty Ltd and/or Oztrak Europe GmbH, arising from their litigation in Germany, and in any event on the first anniversary of the date of the loan. V. BGF may at its sole discretion repay the loan at any time without penalty. VI. Each party will bear its own costs in the preparation and finalization of the loan agreement. BGF will bear any stamp duty payable. VII. The terms letter is legally binding although a further more detailed agreement consistent with these terms will shortly be entered into. CMG CH: Net Asset Value at A$0.71 Per Share ------------------------------------------- As CMG CH China Investments Limited previously advised, shareholders approved the proposal to restructure the Company at an Extraordinary General Meeting held on 15 April 2002. In a letter to shareholders, dated 22 April 2002, the Chairman noted the Company's intention to announce an estimate of the unaudited Net Asset Value (NAV) per ordinary share on a weekly basis. These weekly announcements will be made up until the time the Company's shares are suspended from trading on the Australian Stock Exchange (likely to be 16 July 2002). An announcement of the unaudited NAV per ordinary share at the end of each month will also continue to be made by the Company. The estimated unaudited NAV per ordinary share was A$0.71 as at 26 April 2002 (A$0.72 as at 31 March 2002). The NAV calculation values investments using current market values and exchange rates and is also after provision for tax on both realized and unrealized gains. HILLGROVE GOLD: Plans To Execute Deed of Company Arrangement ------------------------------------------------------------ Hillgrove Gold NL's Administrators, M W Prentice and M J Robinson of Prentice Parbery Barilla Chartered Accountants, advised that on 30 April 2002 the Company's creditors resolved under section 439C of the Corporations Act 2001 that the Company execute a deed of company arrangement. The Company has until 21 May 2002 to execute that deed. As at May 8, 2002, the deed is still to be signed, however, we do expect this to occur prior to 21 May 2002. HOTHAM WINES: Changes Name, Completes Capital Raising ----------------------------------------------------- The next stage in the revitalization of listed wine company, Hotham Wines Limited, has been completed with shareholders voting on 3 May 2002 to approve the name change to Australian Wine Holdings Limited. The Company's ASX code will as a result change to AWL. This event coincides with the completion of a $5.64 million capital raising program incorporating the fully underwritten renounceable rights issue. Shareholder statements relating to the rights issue was dispatched on 6 May 2002. Mr Calneggia commented that the restructure was progressing successfully with key milestones having been achieved including: * Completion of a $5.64 million capital raising program; * Restructure of operations and senior management; * Disposal of excess wine stocks; * Completion of the 2002 vintage; * Development of the "Alexandra Bridge" label; As previously highlighted in Company announcements, negotiations are continuing for the sale of the Company's vineyard properties that should result in a cash return to the company in excess of $10 million. These funds are earmarked for strategic complimentary acquisitions and discussions in this regard are continuing on a confidential basis. Commenting on the current state of the wine industry Mr Calneggia said "The overall production from Australian vineyards in 2002 has been of exceptional quality, although in some regions crop levels have been lower than expected. Australian wine exports moved through the $1 billion target in 1999 and are likely to exceed $2 billion this calendar year. Even using conservative growth rates, it is reasonable to presume that a doubling of the wine export to market to $4 billion appears a reasonable expectation by 2006. To put this into perspective, Australia's total wheat exports are approximately $4 billion per annum, so the wine industry has the potential to be a significant export contributor." The Board maintains its view that through these recent restructuring and capital raising initiatives, Australia Wine Holdings Limited will be well positioned to capitalize on these industry opportunities. TERRAPLANET LIMITED: Capital Raising Completion Successful ---------------------------------------------------------- The Board of Terraplanet (TPL) announced a successful capital raising. TPL on 7 May 2002 confirmed that the issue of 84,700,000 new shares at 1.5 cents each (together with 1 for 5 attached options exercisable at 10 cents per share on or before 31 May 2005) pursuant to the Offer Information Statement dated 1 March 2002, was successfully completed on May 7, 2002. Existing shareholders, including the Directors, subscribed for a total of 57,744,625 new shares in respect of their entitlements, representing 68.2% of the Offer, APG Financial Services United, as underwriter of the issue procured subscriptions for the balance of 26,955,375 new shares. Holding statements for the shares and options under the Offer Information Statement will be dispatched by 10 May 2002. Terraplanet raised gross proceeds of $1,270,5000 from the issue and now plans to further develop its magazine titles through organic growth, strategic alliances, mergers and acquisitions. The capital raising follows 11 months of corporate restructuring since the appointment of a new Board in May 2001. In that time the Company has undertaken extensive cost reductions and refocused activities on its core business of magazine publishing. "Results in the first half of the year were encouraging," said Terraplanet Chairman Sandra Yates. "The Board believes this current raising will provide terraplanet with the ability to realize a number of growth opportunities." Managing Director Lesa-Belle Furhagen said that, "while market conditions were tough, terraplanet was seeing growth in the right places, with publishing revenue up by more than l0 per cent in the first half of the year." UNITED MEDICAL: NSW Court Appoints Provisional Liquidator --------------------------------------------------------- The Supreme Court of New South Wales on May 3 appointed David Lombe, a partner with Deloitte Touche Tohmatsu, as the provisional liquidator for Australia's largest medical- malpractice insurer United Medical Protection Ltd, Bestwire reports. Deloitte Touche Tohmatsu said that Lombe's first tasks encompasses: * reviewing the companies' balance sheets * obtaining a listing of assets and liabilities * commissioning an actuarial study of the companies' claims liabilities * establishibg the status of claims incurred but not reported * determining the companies' reinsurance arrangements and actions required, * reviewing and acting on litigation currently before the courts Lombe's task also includes Australasian Medical Insurance Ltd., a captive insurer owned by UMP, and MDU Australia Insurance Co. Pty Ltd., another affiliate. The government has agreed to guarantee coverage for doctors with United Medical, which debt is estimated to exceed its assets by as much as A$500 million, coverage on claims incurred between April 29 and June 30, but it isn't clear where coverage will come from beginning July 1. UTILICORP ASIA: Holding Companies on Creditwatch Negative --------------------------------------------------------- Standard & Poor's had placed Monday the `BBB/A-2' ratings on issuances by Utilicorp Asia Pacific Pty. Ltd., Utilicorp Australia (Gas) Finance Pty Ltd., Utilicorp Australia Finance Pty. Ltd., and Utilicorp Finance NZ Co. on CreditWatch with negative implications. The actions reflect the placement of Aquila Inc.'s corporate credit and senior unsecured debt ratings on CreditWatch with negative implications following the announcement of its acquisition of U.S. based utility Cogentrix Energy Inc (BB+/WatchPos/--). Aquila Inc. irrevocably and unconditionally guarantees all of the debt issued by Utilicorp Asia Pacific Pty. Ltd., Utilicorp Australia (Gas) Finance Pty. Ltd., Utilicorp Australia Finance Pty. Ltd. and Utilicorp Finance NZ Co. All are wholly owned subsidiaries of Aquila and are funding vehicles for the parent's equity interests in Australia and New Zealand. Aquila Inc.'s (formerly UtiliCorp United Inc.) Australian investments are in electricity and gas businesses. They include a 34% ownership share in the Victorian electricity distribution business United Energy Ltd. (A-/Negative/A-2) and a 50% interest in the Victorian gas utility Multinet Gas. In fiscal 2000, Aquila and United Energy acquired a 45% stake in AlintaGas Ltd. (BBB/Stable/A-2), a gas distribution and retail utility in the state of Western Australia. UtiliCorp United operates all of these utilities. Aquila also owns a 12.5% interest in an energy retailer, Pulse Energy Pty. Ltd. Aquila is an international energy company with electricity and gas network operations in the U.S., Canada, Australia, and New Zealand (providing about 75% of earnings before interest and tax); energy marketing and trading, gas gathering and processing, and independent power project ownership and development (providing almost 20% of earnings and growing rapidly); and North American telecommunication businesses and other related investments. In North America, the company serves about 1.7 million utility customers in seven states and two Canadian provinces. Aquila's corporate credit rating is based on the consolidated credit profile of the entire entity, including the various U.S. and international electricity and gas network operations and the other nonregulated subsidiaries. VOICENET (AUST): May 31 AGM Scheduled ------------------------------------- Voicenet (Aust) Limited notified that the annual general meeting of the Company will be held at The CTA Business Club, MLC Center, 19-29 Martin Place, Sydney NSW 2000 on Friday 31 May 2002 at 11:00am. BUSINESS OF THE MEETING ORDINARY BUSINESS 1. ACCOUNTS AND REPORTS To receive and consider the balance sheet, profit and loss statement of the company and of the consolidated entity and the reports of the directors and of the auditors for the year ended 31 December 2001. 2. TO ELECT DIRECTORS To Consider and if thought fit, to pass the following resolutions as separate ordinary resolutions: (a) "That Michael Bernard Silver, who retires in accordance with regulation 71(2) of the company's constitution and being eligible offers himself for re-election, be elected as a director". (b) "That Lindsay Charles Spencer Sanford, who retires in accordance with regulation 71(2) of the company's constitution and being eligible offers himself for re-election, be elected as a director". (c) "That Michael John Ivkovic who retires in accordance with regulation 71(2) of the company's constitution and being eligible offers himself for re-election, be elected as a director". 3. ISSUE SHARES AND OPTIONS To Consider and, if thought fit, to pass the following resolutions as ordinary resolutions: (a) "That the directors be authorized to issue to certain creditors of the company 34,000,000 ordinary fully paid shares in the company on the terms and conditions set out in Annexure "A"." (b) "That the directors be authorized to issue to key personnel of the company no more than five million two hundred thousand executive options to subscribe for ordinary fully paid shares in the company on the terms and conditions set out in Annexure "B"." VOICENET (AUST): Reaches Debt Settlement Agreement With WBWA ------------------------------------------------------------ The Board of Voicenet (Aust) Limited revealed that the Company has reached an agreement to settle the claim against it by William Buck WA (WBWA). The agreement includes the placement of shares in the Company to William Buck WA at 2.5 cents each in satisfaction of the claim for $223,955.00. The agreement is subject to shareholder approval which is to be sought at the company's Annual General Meeting to be held on 31 May 2002. As part of the settlement, the Board has accepted the resignation of Christopher John Brown as an officer of the Company and all related entities. ================================ C H I N A & H O N G K O N G ================================ CELESTIAL ASIA: Exceptional Price & Turnover Unexplainable ---------------------------------------------------------- Celestial Asia Securities Holdings Limited has noted the recent increases in the price and the increases in trading volume of the shares in the Company and stated that, the Company is not aware of any reasons for such increases. The Company also confirmed that there are no negotiations or agreements relating to intended acquisitions or realizations which are discloseable under paragraph 3 of the Listing Agreement, neither is the Board aware of any matter discloseable under the general obligation imposed by paragraph 2 of the Listing Agreement, which is or may be of a price-sensitive nature. ONWAY KNITTING: Winding Up Petition Set for Hearing --------------------------------------------------- The petition to wind up Onway Knitting Equipment Leasing and Trading Limited is set for hearing 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 Standard Chartered Bank, being a corporation duly incorporated in the United Kingdom with a place of business registered in Hong Kong, pursuant to Part XI of the Companies Ordinance (Cap. 32) at Standard Chartered Bank Building, 4-4A Des Voeux Road Central, Hong Kong. PEARL ORIENTAL: Shareholders Approve Resolutions at SGM ------------------------------------------------------- The Directors of Pearl Oriental Holdings Limited related that at the special general meeting of the Company held on 7 May 2002, the special resolutions relating to the change of Company name and Capital Reorganization, the ordinary resolution relating to the general mandates to issue and to repurchase adjusted shares as contained in the Circular of the Company dated 12 April 2002 were duly approved by the shareholders of the Company. WINWAY H.K: Winding Up Petition to be Heard ------------------------------------------- The petition to wind up Winway H.K. Industrial Limited is scheduled for hearing before the High Court of Hong Kong on July 3, 2002 at 10:30 am. The petition was filed with the court on March 19, 2002 by Lung Kee Metal Limited and Lung Kee Steel Limited whose registered offices are both situated at 1st Floor, Cheung Kong Electronic Building, 4 Hing Yip Street, Kwun Tong, Kowloon, Hong Kong. ================= I N D O N E S I A ================= ASTRA INTERNATIONAL: Debt Rescheduling Likely --------------------------------------------- PT Astra International Tbk is determined to reschedule the debt maturing on December 31 2002 worth US$133 million and Rp165 billion, Bisnis Indonesia reports, quoting President Director Theodore Permadi Rachmat, noting that a financial advisor has been appointed in order to analyze payment of the maturing debt. "I think rights issue will not materialize as performance of the first quart is quite good," Rachmat said and didn't answer when asked whether settlement would be a combination of paying half of the debt and extend the due date for the next half. He added that the Company will most probably sell stake in PT Astra Agro Lestari Plc as it is one of the assets that can be sold easily. Earlier, the Company disbursed US$15 million to Indover Bank in April 2002 in relation to a 1984 corporate guarantee on the Soeryadjayas' debt. ASTRA INT'L: Rights Offer Best Way to Cut Debt, Says Analyst ------------------------------------------------------------ Samuel Sekuritas Analyst Sri Wijayaningrum said that PT Astra International will be best able to cut debt by making a rights offer, IndoExchange reports. The report said that a sale of stock to current shareholders that raises at least Rp1.6 trillion would be "the best of the alternatives". Other options include divestment of stake in a Toyota Motor Corp joint venture and debt restructuring. "A stronger rupiah will also help," Sri Wijayaningrum added. Astra International, a 30% stake owned by Singaporean Cycle & Carriage, must start its negotiations with creditors by July in order to finance debt payments of US$133 million and Rp165 billion due by December. ========= J A P A N ========= ALL NIPPON: Moody's Considers Cutting Rating to Junk Status ----------------------------------------------------------- Moody's Investors Service said Tuesday it was considering cutting its credit rating for All Nippon Airways Co. to junk- bond status because of growing competition in Japan. Moody's said it was reviewing the Baa3 senior unsecured long term ratings of Tokyo's airline company on review for possible downgrade. The review is in response to the recent announcement that the Fair Trade Commission conditionally approved the merger between Japan Airlines Co., Ltd. (JAL) and Japan Air System Co., Ltd. (JAS) to create the world's third largest airline in terms of revenue. As a result, Moody's is concerned that ANA's earnings and cash flow may face downward pressure due to severe price competition from the JAL and JAS group in the domestic market, as well as the more difficult business environment facing ANA due to the weak Japanese economy. The Baa3 rating is the lowest so-called investment grade rating on the Moody's scale. If the rating's agency follows through with a downgrade of ANA, it would bring its rating closer in line with the one given to ANA by Standard & Poor's Corp. S&P has given ANA a double-B-minus rating since November 2000. In announcing its ratings review Tuesday, Moody's said it was concerned that ANA's earnings and cash flow may face downward pressure due to severe price competition from the JAL and JAS group. ANA's stock slipped 0.3 percent Tuesday to 356 yen ($2.79), a decline of just one yen, even as the benchmark Nikkei 225 Stock Average fell 2 percent. DAI-ICHI KATEI: CCC Wins Rights to Sponsor Rehab Efforts -------------------------------------------------------- Culture Convenience Club Co. (CCC) has won exclusive rights to negotiate with failed consumer electronics retailer Dai-Ichi Katei Denki Co. to sponsor its rehabilitation efforts, Kyodo News reported yesterday. In April, the Tokyo District Court has approved the rehabilitation procedures under the Civil Corporate Rehabilitation Law of Dai-Ichi Katei Denki. Dai-Ichi Katei said it would submit a restructuring plan to the court by July 17. The Tokyo-based retailer said two of its affiliates also received similar court approval to start rehabilitation procedures under the law. Dai-Ichi Katei Denki, together with Dai-Ichi Credit, filed for bankruptcy protection with the Tokyo District Court on April 17, leaving behind debts totaling Y33.9 billion. The electronics retailer posted a pretax loss of Y1.99 billion for the fourth straight year, with sales of Y27.60 billion. The Tokyo bourse will delist the Company's shares on July 17. HITACHI LTD: To License Technology to Chinese Rivals ---------------------------------------------------- Hitachi Ltd, along with Toshiba Corp and other major Japanese electronics manufacturers, plans to license technology for a number of their products to Chinese competitors, the Nihon Keizai Shimbun reported, without citing sources. Hitachi will provide a Chinese firm with technology for manufacturing projection TVs as early as next fiscal year. It will initially supply some 500 million yen worth of key components monthly to the Chinese company, the paper said. Once the Chinese Company starts producing key parts on its own, it will be asked to pay Hitachi licensing fees. In April, Hitachi posted consolidated losses of 117.42 billion yen in fiscal 2001. The Company attributed its result to a sharp decline in global demand for semiconductors and information technology-related products such as mobile phones. MATSUSHITA ELECTRIC: Plans Drug Discovery Tech With Tensor ---------------------------------------------------------- Matsushita Electric Industrial Co., Ltd. (NYSE: MC), best known for its Panasonic brand and Tensor Biosciences, today Tuesday that they have signed a five-year agreement to develop and commercialize Brain-on-a-Chip(TM) drug discovery technology. Matsushita Electric is a pioneer in the development of advanced instruments that enable the real-time study of activity patterns in living brain tissue. Its leading product in this area is the MED64 System, which uses a patented computer chip-like probe to stimulate and record the electrical activity of brain tissue samples at a multitude of locations in parallel. Tensor Biosciences is creating a new generation of highly realistic brain models and associated drug testing assays, the Brain-on-a-Chip(TM) platform, which is centered around the MED64 System. Pursuant to this agreement, the drug testing assays developed by Tensor will be patented by Matsushita Electric and licensed exclusively back to Tensor for use in the discovery of new drugs. "The MED 64 System is an exciting new business area for our company," said Mr. Fumio Otsubo, Managing Director and Member of the Board of Matsushita Electric." This potentially promising new business allows Matsushita Electric to utilize its accumulated intellectual property in the biosciences and the latest digital electronics technology. The agreement with Tensor will help us to further advance this business." "At Tensor Biosciences we believe the world of drug discovery is entering into a period of fundamental change - there is a growing awareness of the need for new tools to study the ways in which drugs effect complex biological systems, not just their component parts," said Dr. Jim Whitson, President and CEO of Tensor Biosciences. "In the case of brains, neuronal networks, not just the individual neurons that comprise them, give rise to behavior. Therefore we believe that the development of a new drug discovery technology based upon the study of these networks is the best way to significantly improve the rate of drug discovery for brain diseases. The MED64 System is the right tool at the right time for this work. We are delighted to sign this agreement with the forward-thinking people of Matsushita Electric and to join with them in pursuing this vision." The MED64 System is a multi-electrode neurophysiology instrument manufactured by Matsushita Electric for use in neurobiological research. It is capable of recording and stimulating samples of living brain tissue via any of sixty-four electrodes that are arrayed along the bottom of a dish or probe. The patented probe design is manufactured using photo-lithography much like a computer chip. Tensor Biosciences is using the MED64 System to develop its Brain-on-a-Chip(TM) technology which is used to rank which of the many potential neurotherapeutics produced each year are most likely going to be effective in humans and which have unwanted side-effects. Drug testing assays developed by Tensor are largely centered around the MED64 System's unique ability to image the activity of thousands of interacting neurons at once. In addition, Tensor has proprietary methods for recording drug effects from brain slices cultured directly on the probe and kept alive many days or even weeks. On April 1, 2002, Matsushita Electric set up a subsidiary company, Alpha MED Sciences Co., Ltd., headquartered in Tokyo, Japan, which specializes in the development, production and worldwide marketing of the MED64 System. Alpha MED Sciences combines the expertise of electronics engineers and physiologists to provide MED64 System users with continuously updated technical support and scientific information. With the spread of Brain-on-a-Chip(TM) drug discovery technology within the pharmaceutical industry, Matsushita Electric is expecting that the MED64 System will also gain wider entry into the neurobiological basic research market. Matsushita Electric Industrial Co., Ltd., best known for its Panasonic, National, Technics and Quasar brands, is a worldwide leader in the development and manufacture of electronics products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated sales of US$51.70 billion for the fiscal year ended March 31, 2002. It posted a group loss of 431 billion yen (US$3.4 billion), versus net income of 41.5 billion yen a year earlier. In addition to stock exchanges in Tokyo (6752) and elsewhere in Japan, Matsushita Electric's shares are also listed on the Amsterdam, Dusseldorf, Frankfurt, New York, Pacific and Paris stock exchanges. Additional information is available at http://www.panasonic.co.jp/global/top.html. Tensor Biosciences is a privately held biopharmaceutical corporation that began operations in the year 2000 and is headquartered in Irvine, California. From its inception, Tensor has combined the expertise of specialists in computer science and multi-electrode neurophysiology to develop a new, more predictive technology for discovering neurotherapeutics. This focus has produced various patents on methods for testing drugs on slices of living brain tissue. Based upon this technology portfolio, Tensor is currently seeking collaborations within the pharmaceutical industry. For more information on Tensor Biosciences, see the Tensor website at http://www.tensorbio.com. MIZUHO HOLDINGS: FSA Looks Into Computer Fiasco ----------------------------------------------- Japan's Financial Services Agency began its on-site inspections of the Mizuho Financial Group yesterday to look into the truth and who is to blame for the group's massive computer glitch, which came after Dai-Ichi Kangyo Bank, Fuji Bank and the Industrial Bank of Japan merged under Mizuho Holdings Inc., Kyodo News reported. The FSA officials said the financial regulator would inspect Mizuho Bank, which deals mainly with individuals, while the Bank of Japan will inspect Mizuho Corporate Bank, which deals with major corporate clients. The Mizuho group experienced serious computer problems following the April 1 launch of Mizuho Bank and Mizuho Corporate Bank under Mizuho Holdings through the integration of Dai-Ichi Kangyo Bank, Fuji Bank and the Industrial Bank of Japan. The computer disaster disrupted the new banks' operations, resulting in such troubles as customers being double-billed for utilities charges and 7,000 automated teller machines malfunctioning. MIZUHO HOLDINGS: Gives FSA Computer Investigation Report -------------------------------------------------------- The Mizuho Financial Group submitted to the Financial Services Agency on Tuesday a final report on its computer system failures following the April 1 creation of two banks under Mizuho Holdings Inc, Kyodo News reported. Japan's top banking regulator has said it might take action against Mizuho depending on the report's explanation of how the glitches occurred, steps planned by the bank to prevent recurrences and the inspection results. Senior Mizuho officials have said they would clarify management responsibility once the problems are fully repaired and the report submitted, suggesting that some may step down after the glitches that marred the launch of the huge bank's retailing banking operations. The Mizuho spokesman said the bank had seen no problems in money transfers or other operations so far on Tuesday because fewer payments were falling due. Problems at its automatic teller machines (ATMs) have already been fixed to handle any concentration of withdrawals as Japanese return from a string of national holidays, the spokesman said. MIZUHO HOLDINGS: Glitches May Delay Branch-Cutting Plan ------------------------------------------------------- Mizuho Financial Group's plan to cut back on the number of branch offices is likely to be delayed by recent computer systems glitches, The Nihon Keizai Shimbun reported. Mizuho linked the backbone computer systems of the former Dai- Ichi Kangyo Bank, Fuji Bank and Industrial Bank of Japan in April, but a backbone system that can manage all bank's branches is necessary for Mizuho to quickly integrate and close down the branches. Mizuho is considering revising its plan to integrate the computer systems to prevent the recurrence of computer systems glitches, such as the failure to automatically charge utility payments on bank accounts. As a result, Mizuho may be unable to achieve its original target of eliminating 100 branches in four years. NIPPON TELEGRAPH: Use of U.S. Accounting Standards Likely --------------------------------------------------------- Nippon Telegraph and Telephone Corp will, beginning with the current six-month period through September, draw up both overseas and domestic financial statements according to U.S. accounting standards, The Nihon Keizai Shimbun reported. NTT, listed on the New York Stock Exchange in September 1994, believes it can reduce its group accounting burden by making financial statements, one according to Japanese standards and the other according to U.S., the same. The Financial Services Agency will permit the submission of financial statements using U.S. standards. Tokyo's NTT in September 2001 posted current assets of US$28.25 billion against current liabilities of US$31.97 billion. OMRON CORPORATION: Improve Restructuring ------------------------------------------- Omron Corp., which launched a restructuring program in November 2001, will step up streamlining efforts in a bid to move into the black on a net basis in the fiscal year through March 2003, the Wednesday edition of Nihon Keizai Shimbun said. In June, the company plans to divide up an in-house company that produces and sells large systems equipment, automatic ticket barriers and automatic teller machines. In addition, Omron will establish two new in-house companies, one for production and the other for software development and maintenance services. The company also plans to integrate research and development operations by next spring as part of efforts to make new product development cheaper and more efficient. Omron will sell off idle real estate and other assets, in addition to revising personnel affairs, employee training and distribution systems. Headquartered in Kyoto, Japan, OMRON Corporation - www.omron.com - is a global leader in the field of automation. It was established in 1933 and headed by President Yoshio Tateisi, who will resign in June 2003. Omron has more than 25,000 employees in over 35 countries working to provide products and services to customers in a variety of fields including industrial automation, electronic components industries, and healthcare. The company is divided into five regions and head offices are in Japan (Kyoto), Asia Pacific (Singapore), China (Hong Kong), Europe (Amsterdam) and US (Chicago). Omron Corporation liquidated two of its consolidated subsidiaries namely Omron Office Automation Products, Inc. and Omron Communicative Creation Corporation on April 5. SNOW BRAND: Employees Launch Reform Campaign -------------------------------------------- A group of employees at Snow Brand Milk Products Co has launched a campaign to get the scandal-rocked dairy product maker back on its feet, Japan Today reported. The employees will present their reform proposals to the management in June, group members said Tuesday. "We should not stay in the doldrums where everyone loses self- confidence. We want to prove ourselves," one member said. Struggling Snow Brand Milk Products has been hit hard by a series of scandals, including a mass food poisoning incident involving its milk products less than two years ago and by a beef-labeling scandal earlier this year by its subsidiary Snow Brand Foods Co., which disbanded in April as earnings deteriorated sharply. SNOW BRAND: Falls on Restructuring Report ----------------------------------------- Snow Brand Milk Products faced another blow when its shares dropped 16.7 percent to 125 yen in Tuesday's trading on the Tokyo Stock Exchange, Dow Jones Newswires reported. The fall was a result of last week's reports from local media that the struggling dairy products maker will reduce its capital by more than 50 percent and will seek financial aid of 50 billion yen ($393.9 million) from its major lenders, including Norinchukin Bank, UFJ Holdings Inc. subsidiary UFJ Bank and Mizuho Corporate Bank of Mizuho Holdings Inc. A Snow Brand Milk spokesman declined to comment on the reports, saying only that the company will disclose details of the company's restructuring plans May 20. Snow Brand's image was tainted after a beef-labeling scandal in January, which led subsidiary Snow Brand Food to dissolve operations at the end of April. The Japanese food company said last week it and the local unit of Korean food giant Lotte Group are considering an alliance in the area of ice-cream operations. It also said it would continue an alliance with Dole Food Co. Snow Brand Milk aims to reduce its 180 billion yen group debt as of the end of March through restructuring. The company will take over up to 25 billion yen in liabilities from the dissolved Snow Brand Food. SOFTBANK CORP: Smart Firm Cedes Management Control to Karino ------------------------------------------------------------ Softbank Corp. arm Smart Firm, a provider of Internet-related assistance services for small and midsize companies, has ceded management control to President Hideki Karino due to his acquisition of the company's entire equity stake, Kyodo News reported. Internet investor Softbank in April expected a group net loss of 89 billion yen ($691.5 million) for the latest business year despite a cash infusion from the partial sale of a stake in Net portal Yahoo Inc. The Company has reported a net loss of 54.3 billion yen for the April-September period and a net profit of 36.3 billion for 2000/01. The Tokyo-based Company has been looking to reduce its debt and generate cash to finance its asymmetric digital subscriber line (ADSL) business "Yahoo BB", which it launched with its subsidiary Yahoo Japan in September. ========= K O R E A ========= DAEWOO MOTOR: Local Market Share Crashes in April ------------------------------------------------- For the first time in the company's history, Daewoo Motor's domestic market share has crashed below 10 percent in April despite the final takeover contract from General Motors Corp, the Korea Herald reported. According to the bankrupt automaker, Daewoo's domestic car sales amounted to 12,857 units in April, representing an 8.5 percent share of the 152,040 cars sold nationwide. Ssangyong Motor has replaced Daewoo as the nation's No. 3 automaker since January with 13,212 cars sold in the domestic market in April. The share of Daewoo Motor's automobiles in 2000 hit 16.9 percent and dropped further to 11.8 percent last year. "With Daewoo's local market share staying at single digits and its consumer image increasingly tainted, the incoming management from GM will find it a daunting task to catch up with industry leaders, such as Hyundai and Kia," an official at the Korea Automobile Manufacturers Association said. GM aims to raise Daewoo's domestic share to 10 to 15 percent after its formal takeover in July or August. GM and Daewoo's creditors wrapped up a deal last Tuesday that will see the world's largest automaker take over about two- thirds of Daewoo's core plants and global network. Daewoo Motor filed for bankruptcy last November after amassing $17 billion in debt. HYNIX SEMICON: May Face Prepackaged Bankrupty --------------------------------------------- The South Korean government will file for a prenegotiated plan of reorganization to place Hynix Semiconductor Inc. under receivership if the chipmaker's board of directors rejects the creditors' plan to divide the company for sale. "If the board rejects the creditors' plan, we can only use prepackaged bankruptcy to place it under receivership," Financial Supervisory Commission Chairman Lee Keun-young told Yonhap News Agency Wednesday. In a prenegotiated plan, a company can head for court protection as soon as the company and creditors reach agreement on the terms of the restructuring. A prepackaged case reduces the time needed for filing court receivership from usually more than a year to three months. Last Friday, Korea Exchange Bank and 11 other creditors of Hynix met to discuss future plans for Hynix after a deal to sell the company's memory chip operations to U.S.-based Micron Technology Inc. failed. Hynix currently operates 12 factories, some of which should be sold off or liquidated. Its operations include memory and non- memory chips, TFT-LCD (thin film transistor liquid crystal display) used in flat computer screens and other business lines. Operations with little business chance will be brought together under a bad company and will be subject to liquidation. HYNIX SEMICON: Urged to Accept Breakup or Face Bankruptcy --------------------------------------------------------- South Korea's Financial Supervisory Commission said chipmaker Hynix Semiconductor Inc. should accept a proposal by creditors to break it up and sell it in pieces or face bankruptcy, Bloomberg reported. The Board will meet to discuss the split-and-sell plan Thursday or Friday and make a decision by Monday, Hynix spokeswoman Kang In Young said. If the Board scraps the proposal, creditors will seek Hynix's bankruptcy to speed the process to months instead of years. Last Tuesday, Hynix's 10 Board members unanimously rejected a $3 billion takeover offer from Micron Technology Inc, prompting creditors to say Friday the company should be broken up and sold as a way to recoup at least part of the almost $5 billion in loans they provided last year to keep the company afloat. Under a debt-for-equity swap that takes effect June 1, creditors may control as much as 80 percent of the company. Hynix's outstanding debt of KRW9.57 trillion will be reduced to KRW6.6 trillion after creditors' debt-to-equity swap. HYUNDAI MOTOR: Daimler Rules Out Platform Sharing ------------------------------------------------- DaimlerChrysler is not interested in sharing its premium-brand platforms with Hyundai Motor, the Korea Herald reports. Hartmut Schick, a DaimlerChrysler vice president in charge of public relations, said that the German-American carmaker's Mercedes Benz brand has been kept from the latest agreement with Hyundai Motor and Mitsubishi Motors to set up a joint venture passenger-car engine company. Schick said that the aluminum mid-sized engines with displacements of 1.8, 2.0 and 2.4 liters in the range of 120 to 165 horsepower, which will be jointly designed and developed with Hyundai and Mitsubishi, are not suitable for the Benz brand cars. Schick added that DaimlerChrysler's decision on whether it buys an additional 5 percent in Hyundai, on top of its existing 10.46 percent stake, would be made by the end of this year. On Sunday, chief executives of Hyundai, DaimlerChrysler and Mitsubishi signed an agreement to set up a three-way joint- venture manufacturer of passenger-car engines, with Hyundai offering its self-developed mid-sized engines to the alliance partners. As of December 2001, Hyundai Motor's current assets stood at US$3.72 billion against current liabilities of US$45.7 billion. SHINHAN BANK: FSS to Inspect 7 Group Units ------------------------------------------ The Financial Supervisory Service (FSS) will launch integrated inspections of seven of the financial companies under the wing of Shinhan Financial Holding Co. until the end of this month, the Korea Herald reports. The seven companies to be subjected to the inspections are Shinhan Bank, Bank of Cheju, Shinhan Securities, Shinhan Investment Trust & Securities, Shinhan Capital, Shinhan Life Insurance and Shinhan Financial Holding Co. The panel inspections will focus on evaluating the management of the seven financial firms based on the activities of their main affiliates, profitability, capital adequacy and management abilities. In March, Troubled Company Reporter Asia Pacific reported that FSS was investigating Shinhan Bank branches in Tokyo and Osaka until March 21 because of losses worth W30 billion due to loans it extended to former Chairman Lee Hee-gun. The agency had focused its inspection on the size and impact the losses would have on branch operations. =============== M A L A Y S I A =============== AOKAM PERDANA: Seeks Two-Month Time Regularization Extension ------------------------------------------------------------ Affin Merchant Bank Berhad, on behalf of Aokam Perdana Berhad announced that it has submitted an application to the KLSE on 3 May 2002 for an additional time of four (4) months over the permissible two (2) months from 25 June 2002 to 24 October 2002 for Aokam to make the necessary applications to all the relevant authorities on the revised regularization plan. Barelu days ago, Aokam Perdana is in discussion with the relevant lenders to restructure and/or reschedule the loan. This debt restructuring effort forms an important component of the proposed acquisition announcement by the Company on 26 April 2002. ASIAN PAC: Provides Debt Restructuring Exercise Status Update ------------------------------------------------------------- Asian Pac Holdings Berhad, pursuant to the completion of its Corporate Debt Restructuring Committee (CDRC) debt restructuring exercise, announced the following development as part of its continuous obligation to place the Company in a stronger financial position: 1. Further to the Debt Restructuring Agreement signed on 6 March 2000 and the Memorandum of Share Deposit signed on 19 December 2000, AP has met its undertaking to certain specific lenders namely Arab-Malaysian Merchant Bank Berhad, Arab-Malaysian Finance Berhad, Affin Bank Berhad, Mayban Finance Berhad, Kewangan Bersatu Berhad and Public Finance Berhad in redeeming from them RM8,366,175 nominal value of Redeemable Convertible Secured Loan Stocks 2000/2005 in return for the release of quoted securities belonging to the margin clients of Kin Khoon & Co. Sdn Bhd (KKC) held by these lenders. 2. The return of the quoted securities in item (1) above is also in line with the winding down of KKC's stockbroking operations following the transfer of the stockbroking license from KKC to Allied Avenue Assets Securities Sdn Bhd, as announced on 4 February 2002. As stated in the said announcement, in winding down the operations, the management was also considering certain proposals made by the clients to settle their outstanding positions and/or recovery of its debts. Accordingly, some of those settlement/recovery made vide a combination of cash, properties and unquoted shares were accepted as viable by management, hence arrangements have been made to complete the process. In the light of this development, as one of the properties offered by KKC's outstanding clients is held by a company, Wangsa Masyhur Sdn Bhd (Wangsa), in accepting the settlement as part of the process of winding down its operations, AP vide its wholly-owned subsidiary company, KKC will become the holding company of Wangsa. Wangsa, an investment holding company has an issued and paid-up share capital of RM500,000 comprising 500,000 ordinary shares of RM1.00 each. KUALA LUMPUR: FIC Approves Proposed Corp, Debt Restructuring ------------------------------------------------------------ On behalf of the Board of Kuala Lumpur Industries Holdings Berhad (Special Administrators Appointed), Commerce International Merchant Bankers Berhad announced that the Foreign Investment Committee has approved the Proposed Corporate and Debt Restructuring within the Framework of Pengurusan Danaharta Nasional Berhad Act, 1998. The approval of the FIC is subject to Equine Capital Berhad increasing its Bumiputera equity interest to at least 30% upon listing. The listing status of KLIH will be transferred to ECB as an integral part of the Proposal. The Proposal is still subject to approvals being obtained from: (i) The Securities Commission; (ii) Bank Negara for the issuance of the ECB irredeemable convertible unsecured loan stocks (ICULS (iii) The Kuala Lumpur Stock Exchange (KLSE) for the following: (a) The admission to the Official List and the listing of and quotation for the entire issued and paid-up share capital of ECB on the Main Board of the KLSE; (b) The listing of and quotation for the ECB ICULS on the Main Board of the KLSE; and (c) The listing of and quotation for the new ordinary shares of RM1.00 each in ECB to be issued pursuant to the conversion of the ECB redeemable convertible secured loan stocks A, ECB redeemable convertible secured loan stocks B and ECB ICULS on the Main Board of the KLSE; and (iv) The Ministry of International Trade and Industry for the recognition of Bumiputera investors pursuant to the proposed offer for sale, if necessary. PSC INDUSTRIES: Restraining Injunction Hearing Fixed on June 13 --------------------------------------------------------------- PSC Industries Berhad, further to its announcement dated 24 April 2002, informed that the court hearing on 6 May 2002 pertaining to the application for an interim injunction to restrain the Receivers and Managers appointed by Affin Bank Berhad on Perstim Industries Sdn Bhd is now fixed for mention on 13 June 2002, pending settlement. TCR-AP reported on early April that PSCI has resolved it debt restructuring with its major creditor, Affin Bank Berhad. The Company finalized a 5-year settlement arrangement with ABB in respect of banking facilities due to them totaling RM464 million. The settlement arrangement was reached arising from the continuous negotiation with ABB for a viable and mutually acceptable debt restructuring solution. RENONG BERHAD: ROC Gets RM770,000 Advance for Working Capital ------------------------------------------------------------- Renong Berhad wishes to inform the Exchange that it is providing Renong Overseas Corporation Sdn Bhd (ROC) with a further advance of up to RM770,000. The advance shall be utilized by ROC for its working capital. ROC, a company incorporated in Malaysia, is a 93.33% owned subsidiary of Renong Berhad. The other shareholders of ROC include United Engineers (Malaysia) Berhad (UEM), Kinta Kellas Public Limited Company, Cement Industries of Malaysia Berhad, TIME Engineering Berhad, Faber Group Berhad and Probadi Sdn Bhd. ROC is principally an investment holding company whose activities include the provision of reimbursable support services to the Renong Group of Companies. UEM, a shareholder of ROC, is also a major shareholder of Renong Berhad. As such, ROC is a person connected to a major shareholder of Renong Berhad and therefore, this advance is deemed to be a related party transaction. RNC CORPORATION: SC OKs Proposals Implementation Time Extension --------------------------------------------------------------- On behalf of the Special Administrators of RNC Corporation Berhad (Special Administrators Appointed), Affin Merchant Bank Berhad, announced that the Securities Commission vide its letter dated 30 April 2002, (which was received on 7 May 2002), had approved the extension of time for six (6) months until 17 October 2002 for the implementation of the Proposals. The "Proposals" encompasses the following: * Proposed Capital Reconstruction; * Proposed Group Reorganization; * Proposed Debt Settlement; * Proposed Rights Issue; * Proposed Acquisitions; * Proposed Distribution; * Proposed Exemptions; * Proposed Restricted Offer for Sale; and * Proposed Transfer to Main Board. S P SETIA: Call, Put Option Period Expired ------------------------------------------ The Board of Directors of S P Setia Berhad, in reference to its announcements dated 12 December 2001, 9 May 2001 and 23 August 1999 and the approval of the shareholders of the Company obtained on 20 January 2000 in relation to the Call Option granted to Setia Indah Sdn Bhd (Purchaser) and Put Option granted to Kelana Ventures Sdn Bhd (Vendor) over HD(D) 290193 Ptd 88357 measuring approximately 1,110.532 acres Of land located in Mukim Tebrau, Johor Darul Takzim (Call and Put Option Arrangement) pursuant to the terms of a Sale and Purchase Agreement dated 23 August 1999 made between the Purchaser and the Vendor, announced to the Kuala Lumpur Stock Exchange that the extended Option Period for the exercise of the Call and Put Option has expired on 3 May 2002 and the Board does not wish to proceed further with the Call and Put Option Arrangement. TCR-AP reported last month that the Securities Commission had, via their letter dated 11 April 2002, approved the Proposed Refinancing, for the purchase of: (i) Approximately 452.625 acres of freehold land identified as H.S.(D) 258291 PTD 71060 and H.S.(D) 317225 PTD 116765 located at Gelang Patah, in Mukim of Pulai, District of Johor Bahru, Johor Darul Takzim; and (ii) approximately 34.518 acres of freehold land held under part of Master Title known as Geran 10027 Lot No. 41557 located at Mukim of Batu, District of Kuala Lumpur, State of Wilayah Persekutuan. SATERAS RESOURCES: Adviser Works on New Proposed Workout Scheme --------------------------------------------------------------- Sateras Resources (Malaysia) Berhad, further to its announcements on 1 April 2002 and 24 April 2002 in respect of the Proposed Settlement of RM254,170,157 debts owing to identified Creditors of the Sateras Group and Proposed Restructuring Scheme informed that Arab-Malaysian Merchant Bank Berhad, its new adviser, is urgently working on the New Proposed Restructuring Scheme. The Board will make details of the new proposal available as soon as they are finalized. Due to the recession, SRM has proposed a debt restructuring scheme, which has received approval-in-principle from 70% of its creditors and financial institutions. The scheme proposed a debts-for-equity swap with 12% accrued interest up to the date of share issuance. In September 1999, the debt restructuring scheme was approved by the FIC and MITI while the SC's approval was obtained in April 2000. On 7 November 2001, the SC approved variations to the proposals and a further extension of time to 27 April 2002 for completion of the proposals. The proposals are currently pending shareholders' approval at an EGM to be convened. SITT TATT: Changes Company Secretary ------------------------------------ Sitt Tatt Berhad posted this notice: Date of change : 03/05/2002 Type of change : Resignation Designation : Joint Secretary License no. : MAICSA 7019696 Name : Hong Kim Heong Last month, TCR-AP reported that Sitt Tatt Berhad received a notification from the Registrar of Companies stating that Enerplus Sdn Bhd, a dormant wholly-owned subsidiary of the Company, was officially struck-off from the register pursuant to Section 308 of the CA 1965. SPORTMA CORPORATION: Gets MITI's Nod on Proposals Amendment ----------------------------------------------------------- On behalf of the Special Administrators of Sportma Corporation Berhad (Special Administrators Appointed), Affin Merchant Bank Berhad, in reference to the announcements of the Proposed Corporate and Debt Restructuring Scheme made on 21 March 2000, 5 September 2000, 10 November 2000, 3 December 2001, 23 January 2002 and 5 February 2002, announced that the Ministry of International Trade and Industry (MITI) via its letter dated 29 April 2002, which was received on 30 April 2002, has no objection to the amendments of the Proposals as announced on the 3 December 2002 subject to: (i) the approval of the Securities Commission being obtained; (ii) the approval of the Foreign Investment Committee being obtained; (iii) Harn Len Corporation Berhad (Harn Len) is required to discuss with the MITI and to obtain its approval to comply with the bumiputera equity participation pursuant to the implementation of the Proposals; and (iv) Harn Len is required to apply to the Ministry of International Development Authorities to seek its approval on the transfer of the manufacturing license owned by Sportma and/or its subsidiaries to Harn Len. TIMBERMASTER INDUSTRIES: Seeks KLSE's RA Extension Approval ----------------------------------------------------------- Timbermaster Industries Berhad (Special Administrators Appointed) announced that the Kuala Lumpur Stock Exchange by its letter dated 6 May 2002 has granted the Company until 7 May 2002 to make the Requisite Announcement (RA) under PN4. The Company will appeal to the KLSE to grant the Company until 30 August 2002 to make the RA. Profile The Company (TIB) and four of its subsidiaries, are currently under the management of Special Administrators (SA), Messrs PricewaterhouseCoopers. Pengurusan Danaharta Nasional Bhd appointed them to these companies on 14 December 1999 and 24 January 2000. The objective of the appointment is to formulate a corporate and debt restructuring proposal which takes into consideration the interest of all stakeholders. The SA had also in April and May 2001 conducted a second tender exercise seeking proposals for TIB. On 14 August 2001, the SA and the White Knight (WK) entered into a MOU to record the basic understanding of the key areas of agreement. The success of the workout proposal would depend on WK fulfilling certain conditions precedent by 30 November 2001. The proposal broadly entails a capital reconstruction, share exchange, acquisition of WK by a newly incorporated company (Newco), debt restructuring of TIB's creditors and transfer of listing status to TIB. In view of this, KLSE has granted TIB a two-month extension to make its requisite announcement of its restructuring plans. * CDRC Releases Status Report as at 31 March 2002 ------------------------------------------------- The Corporate Debt Restructuring Committee (CDRC) on May 7 provided a status update as at 31 March 2002 which highlights the progress made in the finalization of debt restructuring schemes under its purview from 1 January 2002 to 31 March 2002. Visit http://www.bankrupt.com/misc/TCRAP_CDRC0509.pdffor full Report. ===================== P H I L I P P I N E S ===================== NATIONAL BANK: BSP Sets Deadline to Submit Revised Rehab Plan ------------------------------------------------------------- Rafael Buenaventura, Bangko Sentral ng Pilipinas (Central Bank of the Philippines or BSP) governor, said Philippine National Bank will present to the Monetary Board within a month a revised rehabilitation plan that includes inputs from the Senate government corporations committee, the BusinessWorld newspaper reported. Buenaventura said that among the committee proposals being considered is extension of PNB's rehabilitation period from five to ten years. The committee also wants the bank to repay some 7 billion pesos in restructured loans to the government in less than 10 years. Earlier this week, the country's Securities and Exchange Commission (SEC) has fined PNB 100,000 pesos a day from April 30 for failing to meet the deadline on that day for the submission of its 2001 annual report to the regulatory body. PNB majority shareholder Lucio Tan and the government signed last Friday an agreement to swap the bank's 25 billion pesos debt from the BSP and Philippine Deposit Insurance Corp. (PDIC) to the state for equity, paving the way for the bank's rehabilitation. It begins with a reverse privatization wherein the government would reacquire management control of the bank until such time that it becomes profitable. Under the agreement, 7.8 billion pesos of PNB's debt to the state will be converted into shares, another 7 billion will be stretched into a 10-year loan, while the remaining 10 billion will be offset against the government's liabilities to the bank. The government and Mr. Tan's group would then jointly sell at least 67 percent of the bank to a strategic private investor at a more opportune time in the future. PHILIPPINE AIRLINES: Resumes Flight to Tagbilaran ------------------------------------------------- Philippine Airlines will resume a long-awaited service between Manila and Tagbilaran City on May 17, 2002, providing a first- ever direct jet link to the tourist island of Bohol, reports the Philippine Star. The service will initially operate three times a week, with departures from Manila every Tuesday, Friday and Sunday at 3 p.m. Arrival in Tagbilaran is at 4:15 p.m. The return flight departs Tagbilaran on the same days at 5 p.m., arriving in Manila at 6:15 p.m. PAL will deploy Boeing 737-300 jetliners, configured in a 148- seat monoclass layout, on the route. The last time PAL flew to Tagbilaran in 1999, it did so using a Fokker 50 turbo-propeller airplane. Philippine Airlines, which in February incurred a net loss of P358 million, began on May 3 a weekly charter operation connecting Guangzhou in China with Subic Bay and Manila to cater to Guangzhou's growing leisure market. The country's flag carrier is entering its fourth year of a 10- year rehabilitation scheme after a labor strike crippled operations in 1998. ================= S I N G A P O R E ================= ASIA PULP: Readies Response to Creditors ---------------------------------------- Asia Pulp & Paper Co Ltd said Monday it is in the process of preparing a preliminary response memorandum for consideration by its creditors, Business Times reported. APP, which froze repayment of principal and interest of its debt of some US$13 billion in March last year, said there was much more common ground after its creditors outlined a proposed restructuring of the debt. The restructuring plan includes measures such as the conversion of debt into equity, and a proposal for the Widjaja family, which controls APP, to make some form of contribution to APP. One suggestion is for the Widjaja family to inject some of their assets into APP, such as the forestry concessions that supply APP with timber. The Troubled Company Reporter Asia Pacific said yesterday APP has appointed Eddy Pianto, a member firm of Grant Thornton International, to audit Indonesian subsidiaries PT Pabrik Kertas Tjiwi Kimia and PT Indah Kiat Pulp & Paper. APP also appointed new independent commissioners at Tjiwi Kimia and Indah Kiat. Asia Pulp & Paper - http://www.asiapulppaper.com- has called a moratorium in March 2001 on its $13 billion debt as operations tottered under the weight of a liquidity crunch, falling pulp and paper prices and ratings downgrades. The New York Stock Exchange delisted APP last July. The Company's Indonesian subsidiaries, Indah Kiat and Tjiwa Kimia, were suspended from the Jakarta Stock Exchange for failing to submit their latest financial statements. =============== T H A I L A N D =============== COGENERATION PUBLIC: Repurchases Remaining ECDs From Tractebel -------------------------------------------------------------- Pursuant to the form 10-6 which The Cogeneration Public Company Limited (COCO or the Company) submitted to the SET on 25 March 2002, it was mentioned in Item 5.2 of the form that there will be a tender offer for the convertible debentures at the price of Bt9,163 per unit. The convertible debentures referred to in Item 5.2 of the form 10-6 are the European Convertible Debentures (ECDs). As previously notified to the SET on 5 March 2002, COCO had partially redeemed the ECDs on 12 February 2002 and there remains only 30 units outstanding, out of the total of 120,000 units. COCO is in the process of repurchasing the remaining ECDs back from the ECD holder. If the repurchase process is completed before the commencement of the tender offer period, no tender offer for the ECD is required. Notwithstanding the above, if the repurchase is not completed before the commencement of the tender offer period, Tractebel S.A. (as the major shareholder of the Company and the tender offeror) informed COCO that it will not make a formal tender offer for the 30 remaining ECDs. However, it will provide as an additional alternative, either in the tender offer document in relation to shares or otherwise, an opportunity for the ECD holders to sell their ECDs to Tractebel S.A. at the price of 9,163 per unit, if they wish, in addition to the sale of the ECDs back to COCO. MEDIA OF MEDIAS: Posts Business Rehabilitation Plan Amendments -------------------------------------------------------------- K.Y.S. Holding Co, Ltd., Plan Administrator of Media of Medias Public Company Limited, in reference to the Business Rehabilitation Plan and Summary of the Business Rehabilitation Plan of the Company submitted to the Stock Exchange of Thailand on January 16, 2002, informed that after receiving the written notices confirming amount of debt/equity swap from creditors, the plan administrator has made the amendments to some parts of the Plan regarding total amount of debts and the debt settlement period. Such amendments were approved by the Creditors Committee during the Meeting held on March 6,2002. Summary of the amendments to the Plan are as follows: * Guidelines of debt structuring clause 4.4 page 16-17 of the Plan and the attachment #5 of the Plan Amend total amount of debts Original Amend (Million Baht) (Million Baht) Interest carried debt 176.9 178.0 Non-interest carried debt 65.2 35.4 Hanging debt 86.3 5.0 Settled by advertisement airtime debt 0.0 3.7 Convertible Debenture 22.3 22.2 Debt/equity swap 273.2 324.3 Offset with Account Receivable 6.4 6.4 Hair Cut: Principal 127.5 127.5 Accrued interest 176.9 176.9 Revenue Department payable in dispute 141.3 141.3 Total 1,076.1 1,68.7 * Attachment # 4 of the Plan Details of debts guarantee values of guarantee have been changed according to the valuation made by the independence valuer after the Court approved the Plan. Original value New value (Million Baht) Main assets used as guarantee for creditor Group 1-Secured Creditor 65.7 80.0 Subordinate assets used as guarantee for creditor Group 2- Other secured Creditor 48.2 32.1 Attachment # 8 of the Plan Guidelines of debt structuring clause 4.4 page 16-17 of the Plan amendment the beginning and ending date of principal repayment . Creditors under Section 130(Group 3) January 31, 2002 - June 30, 2002 to May 31, 2002 - October 31, 2002 Strategic Important Creditors(Group 4) June 30, 2002 - June 30, 2009 to October 31, 2002 - October 31, 2009 Others except Group 3 and 4 March 31, 2004 - December 31,2009 to July 31,2004 - April 30, 2010 SINO-THAI: Unit Receives Bt50M Financial Aid from Perpetual ----------------------------------------------------------- Sino-Thai Engineering & Construction Public Company Limited (STECON) notified that HTR Company Limited, an 80.90% owned subsidiary of STECON, has received a financial support from a related person, Perpetual Prosperity Company Limited. On April 25, 2002, Perpetual Prosperity Company Limited has given a clean loan in the amount of Bt50,000,000 to HTR Company Limited to repay and release mortgage from Ekachart Finance Public Company Limited with the same interest rate and repayment term. In accordance with Notifications to SET, Re: rules, procedures and disclosure of connected transaction Clause 9 (1), the company disclosed the transaction as follow: 1. Date on which transaction occurred: 25 April 2002 2. Parties Involved Lender: Perpetual Prosperity Company Limited Borrower: HTR Company Limited (80.90% owned by STECON) 3. General Characteristics of Transaction: Perpetual Prosperity Company Limited gave a clean loan in the amount of Bt50,000,000 to HTR Company Limited to repay to and release mortgage from Ekachart Finance Public Company Limited with the same interest rate and repayment term. 4. Total value of the Transaction: Value of the Loan Agreement is Bt50 million or 2.64 percent of the total asset value of the company as of December 31, 2001 which equals to Bt1,896.77 million. 5. The details of STECON, HTR and relationship: * STECON owns 80.90% of HTR * 2 STECON, HTR and Perpetual Prosperity have a common Director which is Mr. Anutin Charnvirakul. 6. The nature and extent of the interest of the connected persons in the transaction: HTR Company Limited (a subsidiary) has received a financial support from Perpetual Prosperity Company Limited (a Related person) with details as shown in clause 4 above. The total value of the transaction is Bt50 million or 2.64 percent of total asset value of the company as of 31 December 2001 which equals to Bt1,896.77 million. According to the SET regulation, any connected transaction with the size higher than 0.3 percent but lower than 3 percent of the asset value of the Company stated in the latest financial statement, need no approval from the shareholders but must be disclosed to the SET. SRIVARA REAL: Releases Reorganization Plan Progress Report ------------------------------------------------------------ Asset Recovery Company Limited, Business Reorganization Plan Administrator of Srivara Real Estate Group Public Company Limited, summarized the progressive report of the Company as follows: 1. The Company increased its registered capital from Bt10 Million to Bt1,218.94 Million and increased paid up capital from Bt10 Million to Bt1,205.91 Million divided into 120,591,501 ordinary shares with par value of Bt10 in order to repayment of debt to group 1 creditor and some of group 2 creditors whose debt has already been approved by the receiver. 2. The Company transferred mortgaged assets to group 1 creditor totaling Bt860.12 Million and to group 2 creditor totaling Bt194.73 million. Remaining assets could not be transferred because some are syndicate loan and some are in process of transfer assets. 3. For repayment of debt to the creditors, the Company has sold the freehold property, which mostly was transferred to the customers. 4. The Company repaid some portion of the debt in cash to group 1 to group 6 creditors whose debt has already been approved by the receiver, including group 7 and group 8 creditors. 5. The Company is in the process of capital increase registration for debt repayment to 2 creditors of group 2 whose debt was approved by the receiver. After capital increase, the registered capital will be Bt1,250.93 Million. THAI CHEW: Files Business Reorganization Petition -------------------------------------------------- Dog food producer Thai Chew International Company Limited (DEBTOR)'s Petition for Business Reorganization was filed to the Central Bankruptcy Court: Black Case Number 1564/2544 Red Case Number- /2545 Petitioner: THAI CHEW INTERNATIONAL COMPANY LIMITED Debts Owed to the Petitioning Creditor: Bt397,000,000 Date of Court Acceptance of the Petition: November 19, 2001 Date of Examining the Petition: December 17, 2001 at 9.00 A.M. Court has postponed the Date for Examining the Petition to January 28, 2002 Court has postponed the Date for Examining the Petition to February 25, 2002 Court had issued an Order for the Disposition of the case as the Petitioner had withdrew the Petition for Reorganization on February 27, 2002 Contact: Ms. Amornrhat Tel, 6792525 ext. * DebtTraders Real-Time Bond Pricing ------------------------------------ Issuer Coupon Maturity Bid - Ask Weekly change ------ ------ -------- --------- ------------- Asia Pulp & Paper FRN due 2001 10 - 12 0 Asia Pulp & Paper 11.75% due 2005 26 - 27 +1 APP China 14.0% due 2010 24 - 26 -1 Asia Global Crossing 13.375% due 2006 22 - 25 +3 Bayan Telecom 13.5% due 2006 20 - 22 0 Daya Guna Sumudera 10.0% due 2007 1.5 - 3.5 0 Hyundai Semiconductor 8.625% due 2007 70 - 80 -1 Indah Kiat 11.875% due 2002 27.5 - 28.5 +0.5 Indah Kiat 10.0% due 2007 22.5 - 24.5 +1 Paiton Energy 9.34% due 2014 65 - 68 0 Tjiwi Kimia 10.0% due 2004 22 - 24 +1 Zhuahi Highway 11.5% due 2008 28 - 33 0 Bond pricing, appearing in each Thursday's edition of the TCR-AP, is provided by DebtTraders in New York. DebtTraders is a specialist in global high yield securities, providing clients unparalleled services in the identification, assessment, and sourcing of attractive high yield debt investments. For more information on institutional services, contact Scott Johnson at 1-212-247-5300. To view our research and find out about private client accounts, contact Peter Fitzpatrick at 1-212-247-3800. Real-time pricing available at www.debttraders.com 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 ***