/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/020708.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, July 8, 2002, Vol. 5, No. 133 Headlines A U S T R A L I A EARTH SANCTUARIES: Sells Wildlife Properties To Avoid Extinction LANDY DFK: Securities Dealer Agrees to Surrender License SPIKE AUSTRALIA: Calls in Administrators As Rescue Deal Falters C H I N A & H O N G K O N G CONDO ENGINEERING: Wind Up Petition Set for Hearing on August 7 PAK KA ENTERPRISES: Liquidation Hearing Set for August 28 SINO HK: Hearing on Wind Up Petition Next Week SINO STATES: HK High Court to Hear Liquidation Motion July 17 YABOOM LIMITED: Winding Up Motion Set for Hearing in September I N D O N E S I A BANK NIAGA: Auction Slated Anew Next Month or Early September MANULIFE INDONESIA: Probe Panel Wants 10 More Days to Pin Judges TEXMACO GROUP: Restructuring Vehicles to Issue US$3 BB Bonds J A P A N FUJITSU LTD: Hopes To Cut Debt by Y260 Billion in Three Years JAPAN TOBACCO: Closing Eight Factories by March 2005 MITSUSHI ELECTRIC: French Workers Protest Shutdown NIPPON COLUMBIA: Unveils New Share Offering Details * Moody's Downgrades IFSR Rating of Eight Insurance Firms K O R E A HANBO STEEL: Plans To Finalize Sale Negotiations by September HYUNDAI MOTOR: Moody's Confirms Ba2 Rating; Outlook Positive SAMSUNG CORP: Consolidating China Operations SEOULBANK: KDIC Mum On Rumors Hana Is Preferred Bidder M A L A Y S I A TAT SANG: Restructuring Hits Snag as Creditors Want RM40MM TIME DOTCOM: Introducing New Cellphone Services This September TIME DOTCOM: Chief Favors Partnership Without Strings Attached P H I L I P P I N E S BENPRES HOLDINGS: Discloses ASM Result COSMOS BOTTLING: Reveals CFS Report PHILIPPINE LONG: Files Suit Against First Pacific in the US PHILIPPINE LONG: Bonds Falls After Moody's Cuts Outlook URBAN BANK: Ombudsman Dismisses Case Against Officials S I N G A P O R E DBS GROUP: Posts Notice of Shareholder's Interest EXCEL MACHINE: Director Tian Kong Resigns BIL INTERNATIONAL: Director Greg Terry Quits Post PARKWAY HOLDINGS: Voluntarily Winds Up Units T H A I L A N D ASIA HOTEL: Unveils Rehabilitation Plan SRITHAI SUPERWARE: Appoints Prin Bholnivas as Board Member THAI HEAT: Issues Stocks, Restructuring Update THAI PETROCHEMICAL: Power Plant Sale to Banpu Stumbles Anew - - - - - - - - ================= A U S T R A L I A ================= EARTH SANCTUARIES: Sells Wildlife Properties To Avoid Extinction ---------------------------------------------------------------- Earth Sanctuaries, Australia's first public conservation company, is selling five sanctuaries and buying back four million shares, about 13% of issued capital, in order to help save the Company. A report by The Advertiser says the company expects to raise $7.82 million from the transaction, which will be used to pay down debts. In its 2001 financial statements, the company listed $2.3 million of total liabilities against current assets of only $1.1 million. Total assets, however, touched $24.1 million. Four sanctuaries housing wildlife will be sold to Perth-based, not-for-profit organization Australian Wildlife Conservancy and a property in the Blue Mountains outside Sydney had been sold to Earth Sanctuaries' former chairman Don Stammer. The Company will return some of the funds back to shareholders through the buyback. The Company will retain only two sanctuaries and a management contract of an eco-tourism site on Kangaroo Island following the disposal. Chairman Kevin Lynch told shareholders the Company could not have continued with 10 sanctuaries. Managing Director Proo Geddes expects Warrawong Sanctuary in the Adelaide Hills and Little River Sanctuary outside Geelong, Victoria, to generate enough revenue to expand the Company in 2005. She said Little River had returned a profit in the past six months thanks to location fees generated through the filming of the latest Ned Kelly movie and night walks. Little River is set to open on September 7 after five species are introduced to the site, she told the Advertiser. LANDY DFK: Securities Dealer Agrees to Surrender License -------------------------------------------------------- The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking from Landy DFK Securities Ltd (Landy Securities), the holder of a restricted securities dealer's license. Landy Securities has agreed to cease operating its securities business on July 8, 2002. The Company has also undertaken to do all things necessary to ensure that its license is canceled on that day. The undertaking follows an investigation by ASIC into the conduct of Landy Securities following concerns that the Company may have been involved in the operation of unregistered managed investment schemes that ASIC requires registration; and failed to adequately supervise and train its proper authority holders. SPIKE AUSTRALIA: Calls in Administrators As Rescue Deal Falters --------------------------------------------------------------- Leading Australian dotcom and Web designer, Spike Australia, has opted to commission insolvency specialist Ferrier Hodgson rather than sell the entire business for a pittance. According to the Sydney Morning Herald, the Company rejected the revised offer of info-tech millionaire Grant Greentree that could have saved the company from voluntary administration. Last month, Spike announced that Mr. Greentree would buy a 20% stake in the company for $5.8 million. Spike's Chief Executive, former Telstra manager Peter Williamson, told the paper that it had come as a "dramatic surprise to many of us that the [original Greentree] investment was not coming through." The source quoted by the paper says Mr. Greentree backed out of the original deal after learning of the Company's true financail state. The investor joined the Company as director for global business in February and has since acted as Spike manager before his reported resignation two weeks ago. Last-minute negotiations tried to sell the entire company for considerably less than $5.8 million, but Spike's two major shareholders, Hong Kong dotcom investor, Techpacific.com, and the Australian listed Spike Networks, rejected the offer. The Company has not issued an official word about its true financial footing, but sources say it has been burning cash at a rate of up to $1 million a month. It has reached its monthly break-even point of about $2 million in only two out of the last six months, the report says. One source says debts total about $5 million, while cash reserves are below $1 million. Spike's administrator Peter Walker of Ferrier Hodgson, declined to reveal Spike's debts or cash reserves yesterday. He said the business would be rationalized, although it is not yet clear to what extent. He said several individuals are interested in investing in Spike. Spike has four offices in Sydney, Hong Kong, Tokyo and Singapore, which have all bled red ink simultaneously at times in early 2002. Listed Spike Networks, which holds 43.4% of Spike Australia, is now indefinitely suspended at 3c from a high of $3.99. ================================ C H I N A & H O N G K O N G ================================ CONDO ENGINEERING: Wind Up Petition Set for Hearing on August 7 --------------------------------------------------------------- The petition to wind up Condo Engineering (China) Limited is scheduled for hearing before the High Court of Hong Kong on August 7, 2002 at 10:00 am. The petition was filed with the court on June 4, 2002 by Wing Wo Engineering Company of Room 1503, Technology Park, No. 18 On Lai Street, Siu Lek Yuen, Shatin, New Territories, Hong Kong. PAK KA ENTERPRISES: Liquidation Hearing Set for August 28 --------------------------------------------------------- The petition to wind up Pak Ka Enterprises (Holding) Limited is scheduled for hearing before the High Court of Hong Kong on August 28, 2002 at 9:30 am. The petition was filed with the court on June 4, 2002 by Bank of China (Hong Kong) Limited whose registered office is situate at 14th Floor, Bank of China Tower, 1 Garden Road, Hong Kong. SINO HK: Hearing on Wind Up Petition Next Week ---------------------------------------------- The petition to wind up Sino Hong Kong Holdings Limited is scheduled for hearing before the High Court of Hong Kong on July 17, 2002 at 9:30 am. The petition was filed with the court on April 9, 2002 by the Secretary Justice of 2/F., High Block, Queensway Government Offices, 66 Queensway, Hong Kong. SINO STATES: HK High Court to Hear Liquidation Motion July 17 ------------------------------------------------------------- The petition to wind up Sino States Development Limited is scheduled for hearing before the High Court of Hong Kong on July 17, 2002 at 9:30 am. The petition was filed with the court on April 9, 2002 by the Secretary of Justice of 2/F., High Block, Queensway Government Offices, 66 Queensway, Hong Kong. YABOOM LIMITED: Winding Up Motion Set for Hearing in September -------------------------------------------------------------- The petition to wind up Yaboom Limited is scheduled for hearing before the High Court of Hong Kong on September 11, 2002 at 9:30 am. The petition was filed with the court on June 18, 2002 by by Camei Industrial Company Limited having its registered office situated at Rooms 1-7, 4th Floor, Chaiwan Industrial City, Phase 1, 60 Wing Tai Road, Chaiwan, Hong Kong. ================= I N D O N E S I A ================= BANK NIAGA: Auction Slated Anew Next Month or Early September ------------------------------------------------------------- Indonesia Bank Restructuring Agency (IBRA) will attempt again to sell part of the government's 97.15% stake in PT Bank Niaga Tbk in late August or early September, reports the IndoExchange. The new schedule follows the cancellation of the original transaction slated for last month. IBRA was forced to suspend the auction after receiving lower than expected offers from the two final contenders, a consortia led by the Australia and New Zealand Banking Group (ANZ) and Malaysia's second largest lender Commerce Asset-Holding Bhd (CAHB). "I will [conduct] the sale (of a majority stake) through auction and this will start in the third week of August or by early September," IBRA Chairman Syafruddin Tumenggung told reporters. To ensure greater interest, the agency will structure the divestment into two tranches: 20% of the mid-sized bank will be floated in the market, while the remaining 51% will be sold to strategic investors. CAHB has not yet indicated whether or not it is still interested in the company, but ANZ has said it is still keen on buying a strategic share. Observers, however, believe one of the reasons investors don't have an appetite for the shares, is their expensive price tag. They say the price IBRA is asking does not reflect the shares' outstanding in the market. MANULIFE INDONESIA: Probe Panel Wants 10 More Days to Pin Judges ---------------------------------------------------------------- The Justice Ministry is suing for ten more days to complete its investigation on allegations that the three judges who declared Manulife Indonesia bankrupt had been bribed, says AFX-Asia. Justice Minister Yusril Ihza Mahendra admitted last week that the investigating panel he formed is having problems convincing witnesses to testify against the rogue judges. "The ten days we have had was not enough for the investigation into the bribery allegations. We need ten more days," Mr. Mahendra told reporters. He said the panel is now coordinating with police and the Bank Indonesia to check the judges' bank accounts. Jakarta Commercial Court judges declared the Company bankrupt June 13. But an official of Manulife Financial, the Canadian parent, accused the magistrates of taking a bribe, forcing the justice ministry to investigate the matter. TEXMACO GROUP: Restructuring Vehicles to Issue US$3 BB Bonds ------------------------------------------------------------ PT Bina Prima Perdana and PT Jaya Perkasa Engineering, two new companies of Texmaco Group set up by the Indonesia Bank Restructuring Agency, will issue this month a total of Rp29.04 trillion of convertible bonds, says IndoExchange. The bond issue will be undertaken along with the restructuring of the group's finances, says M. Syahrial, an IBRA official charged with asset management credit. The establishment of the new companies was among those undertakings by the Committee for Policy-Making in the Financial Sector (KKSK) dated October 2, 2000, which was assigned with the restructuring of the Texmaco Group's debts. Under this plan, one of the companies (PT Bina Prima Perdana) would be 70%-owned by IBRA, while the other (PT Jaya Perkasa Engineering) will be wholly owned by Texmaco. Mr. Syahrial says IBRA will eventually transfer all of its credits to the Texmaco Group to the new companies, and in return the new companies will issue exchangeable bonds to the IBRA at par with the amount of credits being transferred. The credits that will be transferred to Bina Prima Perdana will be appropriated to the eight assets of the company, while the transfer to Jaya Perkasa will involve nine assets. In return for the transfer of the credits, Mr. Syahrial said the two new companies will issue exchangeable bonds, which will mature at the 8th, 9th, 10th and 11th years. Coupon payment will start at the first year after the issuance of the bonds, with yield to maturity of 7% per annum in dollars and 14% per year in rupiahs. To ensure payment of the bonds, Mr. Syahrial said the IBRA will place representatives in the new companies. Meanwhile, the agency will seek the approval from the KKSK for the restructuring of PT Texmaco Perkasa Engineering, PT Perkasa Heavyindo Enginering, PT Perkasa Indo Baja, PT Wahana Perkasa Auto Jaya, and PT Texmaco Micro Indo Utama. In addition, the agency will review the restructuring proposal for PT Perkasa Indo Steel, PT Texmaco Taman Synthetic, PT Wastra Indah, PT Saritex Jaya and PT MKT Tekstil. The IBRA will fulfill the condition required to make effective the restructuring of the main agreements contained in the Master Refinancing Agreement (MRA), such as the amount of obligation and the supporting legal documents, IndoExchange said. ========= J A P A N ========= FUJITSU LTD: Hopes To Cut Debt by Y260 Billion in Three Years ------------------------------------------------------------- Fujitsu Ltd is planning to cut its interest-bearing debt by 260 billion in three years, the Nihon Keizai Shimbun and AFX Asia reported Thursday. The Company will reduce inventory assets to 500 billion yen from 630 billion at the end of March by improving inventory management, and will use a cash-management system to collectively manage group funds. Fujitsu procured 250 billion yen from the issue of zero-coupon bonds with stock warrants in May. Of that amount, it will use 90 billion yen to redeem bonds issued in the past, and 50 billion yen to pay back loans. JAPAN TOBACCO: Closing Eight Factories by March 2005 ---------------------------------------------------- Japan Tobacco Inc (JT) will shut down eight of its 25 tobacco factories starting 2003 to the end of March 2005 due to cloudy prospects for its tobacco business, Kyodo News said Friday. The Company is also considering consolidating seven sales offices in fiscal 2003 starting next April, cutting the number of sales offices to 181 from 188. MITSUSHI ELECTRIC: French Workers Protest Shutdown -------------------------------------------------- About 100 unionized employees protested against the Company's decision to shut down the facility in Bretagne, Western France, Kyodo News said Thursday. About 120 workers also staged a demonstration outside the Japanese Embassy in Paris Wednesday and demanded talks with Mitsubishi Electric. NIPPON COLUMBIA: Unveils New Share Offering Details --------------------------------------------------- Nippon Columbia Co will issue a total of 49,646,000 new shares at 141 yen per share in and outside Japan through Lehman Brothers Japan Inc and Lehman Brothers International (Europe) to enhance its capital base, Kyodo News said Thursday. Subscriptions will be accepted in units of 1,000 shares with payment due July 22. TCR-AP reported last year that the financially troubled music entertainment firm, posted a consolidated net loss of Y520 million and a pretax loss of Y458 million for the fiscal first half ended September 30, 2001. * Moody's Downgrades IFSR Rating of Eight Insurance Firms --------------------------------------------------------- Moody's Investors Service on Thursday has downgraded the insurance financial strength ratings (IFSR) of Japanese P&C insurance: Tokio Marine, Nichido Fire, Sompo Japan, Mitsui Sumitomo Insurance, Nipponkoa Insurance, Aioi Insurance, and Nissay Dowa. This concludes the review initiated on March 8, 2002. The ratings outlook for these companies is stable. Moody's also downgraded the IFSR for Toa Reinsurance, and kept the rating on review for further downgrade. Moody's also placed the IFSR for Toa Reinsurance Company of America (Toa Reinsurance of America), a wholly owned subsidiary of Toa Reinsurance, on review for possible downgrade. Toa Reinsurance has a reasonably strong franchise as the only domestic general reinsurance Company. However, Moody's notes that the Company's business has been declining, partly due to increased underwriting capacity as a result of consolidation of domestic direct insurers. The review will assess the strength of the Company's franchise and the impact of its efforts to expand overseas. The downgrade of the companies is based upon Moody's view that despite the limited cyclicality of the P&C industry in Japan, the sluggish macro-economic environment has led to slow industry growth, low investment returns and increasing volatility of asset portfolios. Furthermore, the Japanese P&C industry is facing challenges in managing the new competitive environment, and business integrations that have not been experienced in the past. While the industry is generally coping well with the change, Moody's believes that these challenges have heightened the overall credit risk of the sector. The two notch downgrade of Aioi is primarily due to the deterioration in both its capital level and customer confidence from the huge losses from the reinsurance program related to Fortress Re. Moody's believes it will be a challenge for Aioi to restore its franchise and financial position in an increasingly competitive operating environment. Nonetheless, Moody's believes the financial strength of the Japanese P&C insurance companies continues to be relatively strong, given their well-established franchises, sound capitalization and limited competition in the Japanese insurance market - particularly when compared to other deregulated overseas markets. The following ratings were affected: Tokio Marine & Fire Insurance Co., Ltd. IFSR downgraded to Aa2 from Aa1, outlook stable Nichido Fire & Marine Insurance Co., Ltd. IFSR downgraded to Aa3 from Aa2, outlook stable Sompo Japan Insurance Inc. IFSR downgraded to Aa3 from Aa2, outlook stable Mitsui Sumitomo Insurance Co., Ltd. IFSR downgraded to Aa3 from Aa2, outlook stable Issuer rating downgraded to Aa3 from Aa2, outlook stable Senior unsecured debt rating downgraded to Aa3 from Aa2, outlook stable The CP rating (P-1) and short-term insurance financial strength rating (P-1) of Mitsui Sumitomo Insurance were unaffected NIPPONKOA Insurance Company, Limited IFSR downgraded to A2 from A1, outlook stable Aioi Insurance Company, Limited IFSR downgraded to A3 from A1, outlook stable Nissay Dowa General Insurance Co., Ltd. IFSR downgraded to A3 from A2, outlook stable Toa Reinsurance Company, Ltd. IFSR downgraded to A2 from A1, continues to be on review for possible downgrade Toa Reinsurance Company of America IFSR A2, placed on review for possible downgrade ========= K O R E A ========= HANBO STEEL: Plans To Finalize Sale Negotiations by September ------------------------------------------------------------- Yamato Kogyo will conduct final negotiations to determine the purchase price of the Pusan works of Hanbo Steel Corporation, Asia Pulse said Thursday. The negotiator hopes to finalize the deal by the end of September. The Pusan works has the capacity to produce 1.1 million tons of crude steel annually. It had revenues of 302.8 billion won in 2002. Hanbo Steel, which went bankrupt in 1997, is a unit of Hanbo Group. HYUNDAI MOTOR: Moody's Confirms Ba2 Rating; Outlook Positive ------------------------------------------------------------ Moody's Investors Service on Thursday confirmed the Ba2 long- term senior unsecured debt of Hyundai Motor Company (HMC), but changed the outlook to positive from stable. The change in outlook reflects the Company's improving performance in the Korean and US automobile markets, and the progress in improving its financial leverage and liquidity. Moody's says that HMC has made considerable progress in several important financial and operational areas. HMC has increased market share and unit sales (despite the industry downturn in the US) and has reduced its cost structure. It has introduced attractive new models and continues to solidify its position as the dominant player in the Korean automotive market. HMC has also built-up a cash position that currently is approximately US$2.9 billion. However, Moody's says that HMC's rating could be constrained by several continuing critical risk factors, which can hamper the Company's performance going forward. HMC has a high dependence on exports, which make earnings and cash flow very sensitive to changes in exchange rates. Moreover, Hyundai's recent decision to construct a facility to produce 235,000 vehicles per year in Alabama (for completion in 2005) will have additional financial and operational risks for the Company. Nevertheless, the positive outlook reflects HMC's potential to manage and reduce these risks while achieving continued improvements in its earnings and cash flow. The rating also reflects our expectation that the Company will achieve an adequate degree of success with its US investments. TCR-AP reported last month that Hyundai Motor's union and management has agreed to a 5,000 won wage hike, 200 percent increase in the yearly bonus and an additional payment of 1.5 million won to its workers after marathon negotiations. With the tentative deal in place, the union returned to normal operations on June 17. The Company announced that the weeklong limited strike had caused about 350 billion won in damages. As of December 2001, Hyundai Motor's current assets stood at US$3.72 billion against current liabilities of US$45.7 billion. SAMSUNG CORP: Consolidating China Operations -------------------------------------------- In order to position itself as the largest computer-monitor firm in China, the South Korean electronics giant Samsung will merge its computer-monitor and television joint ventures in China and improve the marketing of televisions, the China Electronics Page reported. The move is regarded as a key step in Samsung's global restructuring to combine the production of TV sets and computer monitors. "Tianjin Tongguang Samsung Electronics Co Ltd and Tianjin Samsung Electronic Display Co Ltd will be finally united under a new visual-display division, although we are still applying for approval from China's central government," Ko Tae-il, President of the Visual-Display Division of Samsung Electronics in China, said. Since Samsung's ventures in Tianjin are with Chinese companies, the Company should first devise an appropriate way of dividing up the stakes to satisfy the two local partners and win support from the central and local governments. Tianjin Tongguang Samsung Electronics Co (TTSEC), a joint venture with Tianjin Communication and Broadcasting Co Ltd, is the South Korean Company's biggest television production base in China. Samsung invested about US$100 million in it and the base produces 1.1 million TV sets per month. Tianjin Samsung Electronics Display Co (TSED), Samsung's joint venture with Tianjin Electronic Instrument Corp, produces more than 5 million computer monitors annually, one-fifth of Samsung's world total. DebtTraders reports that Samsung Corporation's 0.250% convertible bond due in 2006 (SAMC06KRS1) trades between 132 and 134. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=SAMC06KRS1 SEOULBANK: KDIC Mum On Rumors Hana Is Preferred Bidder ------------------------------------------------------ The Korea Deposit Insurance Corp (KDIC) declined to confirm a report that the government has selected Hana Bank and two foreign funds as preferred candidates for the acquisition of the nationalized Seoulbank. "We cannot confirm or deny such reports as the process of the auction should be kept confidential," an official at the KDIC's sales team said. The M&A Reporter Asia Pacific reported yesterday that the three were selected from the 10 investors that submitted letters of intent for the acquisition of Seoulbank on June 27, and that the three investors are to conduct due diligence exercises for about 15 days from Wednesday. The report said that Hana Bank is most likely to be picked as the successful bidder as the government has said it wants a profitable bank to acquire Seoulbank. (M&A REPORTER - ASIA PACIFIC, Vol. No.1, Issue No. 132, July 05, 2002) =============== M A L A Y S I A =============== TAT SANG: Restructuring Hits Snag as Creditors Want RM40MM ---------------------------------------------------------- Rubberwood furniture maker Tat Sang Holdings Bhd warns of far more turbulent weather ahead, after bankers and creditors conspired recently to sue the Company for the recovery of more than RM40 million in loans. According to The Star, the move is another serious blow to the restructuring efforts at the holding company, which at the moment is moving at snail's pace due in part to the receivership of certain subsidiaries. The online paper did not name the banks and creditors who initiated the suit, but it is known that Standard Chartered Bank (M) Bhd and Standard Chartered Bank Offshore Labuan VS, Bumiputra Commerce Bank Bhd, Malayan Banking Bhd and Bank Pembangunan dan Infrastruktur Malaysia Bhd are among the company's lenders. To date the holding company has contingent liabilities comprising corporate guarantees given to financial institutions in respect of banking facilities granted to subsidiaries amounting to RM37.5 million and US$1.5 million, the report says. Under these contingent liabilities, certain creditors have filed claims against the company's subsidiaries to recover principle debts of RM2.32 million plus interest and cost. The principle debts have been provided in the financial statement of the group but no provision has been made for interest and costs, pending the outcome and settlement of the legal proceedings, the company said. Group revenue and loss before tax for the current nine months has fallen to RM7.459 million and RM7.122 million, respectively, compared with revenue of RM47.238 million and a pre-tax profit of RM5.621 million for the corresponding period last year, the paper says. In its notes to the accounts, the Company said that since the appointment of receivers and managers to certain subsidiaries, the company had been facing a severe cash flow position as most suppliers demanded cash in advance for goods supply. According to the Company, the recent suit has "exacerbated the company's liquidity problem and have resulted in consecutive lower production output for each financial quarter under review. The key drawback to improving the company's sales performance is lack of working capital." It added that with the high level of depreciation, and current outstanding group bank borrowings of RM42 million (including accrued interest), finance charges will remain high and continue to have a major impact on the earnings of the group to the end of the current financial year. "The ability of the group and company to continue as a going concern in the foreseeable future is dependent on the success of the restructuring of the group's business. "The performance of the group continues to be unsatisfactory, and the delay in undertaking the debt restructuring exercise has resulted in heavy interest costs which would contribute further towards losses in subsequent quarters," the company said. The paper says the group is currently talking with potential "white knights" with suitable viable businesses and assets for injection into the group. TIME DOTCOM: Introducing New Cellphone Services This September -------------------------------------------------------------- Ailing Time dotCom will launch in September its multimedia messaging service (MMS), a messaging innovation that can contain still images, voice or audio clips, says AFX-Asia. Speaking during the Company's re-launch of the GPRS service, CEO Robert Fox said this new service, along with the GPRS, will play an important role in the firm's next-generation mobile network deployment. The Company actually launched the GPRS service in December 2000, but the network still needed a lot of improvement. It has since undergone a number of trial sessions, said the CEO. At the moment, the service is available in Peninsular Malaysia, but there are plans to extend it to East Malaysia soon. "Recently we have had a number of significant collaborations with leading application developers such as NTT Data, BT exact and Mobileum to name a few," Mr. Fox said. He believes these collaborations will ultimately make Time dotCom a leading integrated telecommunications solutions provider in the country. For now, the Company is trying to reverse its fortunes, after posting net losses of 43.2 million-ringgit in 2001. The poor performance completely missed the 150.6 million-ringgit net profit forecast for the year. TIME DOTCOM: Chief Favors Partnership Without Strings Attached -------------------------------------------------------------- CEO Robert Fox believes the Company can tie-up with another telecom operator without necessarily merging equities, referring to the recent merger between Telekom Malaysia's TM Cellular and Technology Resource's Celcom. "There are many ways to form (partnerships). We have a strong collaborating philosophy and have demonstrated (that) in the last several months... So, it is possible to have ways of collaborating or ways of getting together without actually having equity based mergers," Mr. Fox told reporters. "I think the trends towards national (growth) and various other trends will see operators able to reduce their cost base, increase their reach to new people effectively without actually necessarily getting into equity-type (partnerships)," he said. Recently, State investment agency Khazanah Nasional Bhd, which holds a substantial stake in the company, hinted that the firm might either be restructured, sold or merged with another operator to reverse its dire condition. The merger of TM Cellular and Celcom is expected to propel the combined group into the No.1 spot of the mobile phone market. Asked for his comments on the impact of the merger to Time, Mr. Fox said: "I don't comment on other people's business. But I think we've got to look at this in the context of where Malaysia is heading as an ever increasingly competitive marketplace." He said a pro-competition environment is important as competition breeds innovation in the marketplace, and "I believe that we will continue to rely on a sound competitive environment." ===================== P H I L I P P I N E S ===================== BENPRES HOLDINGS: Discloses ASM Result -------------------------------------- Benpres Holdings Corporation, with reference to Circular for Brokers No. 1481-2002 dated June 5, 2002 pertaining to the results of the Annual Meeting of Stockholders of Benpres Holdings Corporation (BPC) held on June 4, 2002. In compliance with the letter of the Securities and Exchange Commission requiring the disclosure of the name of the independent director, the Company furnished the Exchange a copy of its SEC Form 17-C, which stated that: "As previously disclosed in the form 17-IS filed by the Company, Mr. Washington Z. Zycip is the independent director." A copy of the document can be located at http://bankrupt.com/misc/TCRAP_Benpres_dir.pdf COSMOS BOTTLING: Reveals CFS Report ----------------------------------- Cosmos Bottling Corporation, with reference to the Circular for Brokers No. 32 dated May 29,1997 pertaining to the features of the Convertible Preferred Shares (CFS) of the Company disclosed the following pertinent dates in relation to its convertible preferred shares: 1. Issue Date of the convertible preferred shares is Feb 20, 1998 2. Final Redemption Date is Feb 20, 2003 3. End of Conversion Period is 15 banking days before Feb 20, 2003, which, barring unanticipated banking holidays during said period would be January 30, 2003. PHILIPPINE LONG: Files Suit Against First Pacific in the US ----------------------------------------------------------- The Philippine Long Distance Telephone Company (PLDT) on Wednesday filed a suit against First Pacific Company Limited (First Pacific) in the United States District Court for violation of requirements under U.S. Securities Law. First Pacific failed to disclose a copy of the Memorandum of Agreement (MOA) it entered into with the Gokongwei Group in violation of Item 7 of Schedule 13 D of the United States Securities Exchange Act of 1934, which requires filing as an exhibit, "copies of all written agreements, contracts, arrangements, understandings, plans or proposals relating to, among others, the acquisition of issuer control and the transfer of the securities. The complaint was filed in the United States District Court, Southern District of New York on July 3, 2002. To have a copy of the SEC filing click on http://bankrupt.com/misc/TCRAP_PLDT_suit.pdf PHILIPPINE LONG: Bonds Falls After Moody's Cuts Outlook ------------------------------------------------------- The Philippine Long Distance Telephone Co. bonds fell after Moody's Investors Service on Thursday downgraded its credit outlook leaving its rating at Ba3, the Manila Times and Bloomberg reported Friday. Moody's changed its outlook because the telephone firm has faced delays in refinancing debt maturing in the next 12 months. "Moody's didn't promise a reinstatement of a stable rating." The Moody's outlook may make it more expensive for the Company to refinance $1.3 billion of debt maturing by 2004, only part of which has been refinanced, unnamed analysts said. URBAN BANK: Ombudsman Dismisses Case Against Officials ------------------------------------------------------ The Office of the Ombudsman has dismissed the criminal complaint filed by Urban Bank officials against Rafael Buenaventura and other central bank officials of criminal and administrative liability regarding the closure of Urban Bank in 2000, AFX Asia said Thursday. However, four other unnamed central bank officials are liable for simple neglect of duty. Urban bank was ordered closed by the central bank's Monetary Board after declaring a bank holiday on April 25, 2000 because of liquidity problems. ================= S I N G A P O R E ================= DBS GROUP: Posts Notice of Shareholder's Interest ------------------------------------------------- DBS Group Holdings Limited posted a notice of changes in substantial shareholder Temasek Holdings (Private) Ltd's interests as follows: Notice Of Substantial Shareholder's Interests Name of substantial shareholder: TEMASEK HOLDINGS (PRIVATE) LIMITED Date of notice to Company: 28 Jun 2002 Date of change of deemed interest: 25 Jun 2002 Name of registered holder: CDP: DBS NOMINEES Circumstance giving rise to the change: Open market purchase Shares held in the name of registered holder No. of shares of the change: 20,000 percent of issued share capital: Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: S$12.6000 No. of shares held before change: percent of issued share capital: No. of shares held after change: percent of issued share capital: Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 4,886,311 184,932,180 percent of issued share capital: 0.33 12.59 No. of shares held after change: 4,906,311 184,932,180 percent of issued share capital: 0.33 12.59 Total shares: 4,906,311 184,932,180 This transaction was reported to Temasek Holdings (Private) Limited on June 28, 2002. Based on 1,468,701,151 shares issued (31 May 2002) All sales are discretionary sales unless stated otherwise. EXCEL MACHINE: Director Tian Kong Resigns ----------------------------------------- The Board of Directors of Excel Machine Tools Ltd on Thursday announced that Mr. Chao Tian Kong has resigned as a Director of the Company with effect from 28 June 2002. Mr. Robin Lau has been appointed Managing Director of the Company with effect from the same date. TCR-AP reported last week that due to the continued weak market in the global economy, the Company expects to post a loss for the first half of 2002. The Group is taking steps to address the pressure on margins through efforts to reduce costs and improve operational efficiencies. BIL INTERNATIONAL: Director Greg Terry Quits Post ------------------------------------------------- The Board of Directors of BIL International Limited (BIL) announced on Thursday the resignation of Mr. Greg Terry as a non-executive director of BIL with effect on July 3, 2002. Meanwhile, the Company announced through its wholly owned subsidiary, Inscribe Investments Limited, it has sold 503,000 shares of Fraser and Neave Limited at the price of S$7.9238 per share. BIL now holds 9.582 percent of the paid-up capital of Fraser and Neave Limited. PARKWAY HOLDINGS: Voluntarily Winds Up Units -------------------------------------------- The Board of Directors of Parkway Holdings Limited said on Thursday that the following wholly owned subsidiaries had ceased to carry on businesses: (1) Development Planning & Management Private Limited; (2) Parkway Development (China) Private Limited; (3) Parkway Land Pte. Ltd.; & (4) Trademart Builders Pte Ltd All units, which are incorporated in Singapore, have been voluntarily wound up on July 4, 2002. =============== T H A I L A N D =============== ASIA HOTEL: Unveils Rehabilitation Plan --------------------------------------- The Stock Exchange of Thailand (SET) recently announced that Asia Hotel Public Company Limited (ASIA) had been subjected to a rehabilitation plan and posted suspension sign to prohibit securities trading of ASIA and also transferred to REHABCO category since 11 March 2002. The SET also informed a time schedule for ASIA's management to make prudent decision on whether to prepare a rehabilitation plan to propose to the company's shareholders, or to ask for a voluntary delisting, or to try another option which will benefit to all involved and report the decision to the SET in order to disclose to public by 9 April 2001.However, ASIA had asked for an extension period to report its decision by 8 July 2002. The SET has considered the ASIA's management decision submitted to the SET (details appear in the R-SIMS system on 4 July,2002) and will proceed as follow; 1. Allow trading of ASIA securities, which decide to prepare a rehabilitation plan, under the REHABCO category from 5 July 2002 to August 5, 2002 to give shareholders a chance of trading ASIA's securities. Therefore, according to Clause 24 (3) and (6) of the regulation on trading, clearing and settlement for listed securities 1999, the ceiling and floor limits on the main board will be expanded from the regular +/-30% to +/-100% of their last trading. The new limits will be in effect on 5 July 2002. 2.Post an SP sign to prohibit further trading of ASIA securities, beginning from 6 August 2002 until the causes of delisting are eliminated or the SET allows continued trading under the REHABCO category after they completed the conditions specified. This is by virtue of Clause 5 (5) of the SET's rules, Conditions and Procedure of the Temporary Prohibition against Trading of Listed Securities dated on 9 February 1995. ASIA is required to proceed as follow: 1) Appoint an independent financial advisor to assist management in the preparation of the rehabilitation plan. 2) Co-operate fully with the independent financial advisor in organizing a meeting to present the rehabilitation plan to analysts and shareholders, and then also propose it to the shareholders for approval. 3) Co-operate with the independent financial advisor in reporting every three months to the SET on its actual implementation progress, as compared to the rehabilitation plan until the causes of possibly being delisted are eliminated. The SET announced to ASIA' shareholders and general investors to follow up the proposed rehabilitation plan prepared by ASIA and its financial advisor, which will be presented to its shareholders meetings. SRITHAI SUPERWARE: Appoints Prin Bholnivas as Board Member ---------------------------------------------------------- In reference to the Business Reorganization Plan of Srithai Superware Public Company Limited (Srithai), which was approved by the Meeting of Creditors on December 21, 1999 and the Court on December 30, 1999 referred herein the approved plan that the company has to appoint the Chief Financial Officer (CFO). In addition the CFO will be nominated to be a member of the Board of Directors of Srithai. In a selection process to identify an appropriate candidate to be the CFO, Mr. Prin Bholnivas was appointed as the CFO of Srithai on March 23, 2000. According to the approved plan, Mr. Prin Bholnivas has been appointed as a member of the Board of Directors of Srithai on July 3, 2002. THAI HEAT: Issues Stocks; Restructuring Update ---------------------------------------------- Thai Heat Exchange Public Co., Ltd. (THECO) on Friday had issued 31,408,200 preferred stocks and 80,264 convertible debentures according to the recent financial restructure and rehabilitation plan that allows the conversion being done at the end of each quarter. At June 25, 2002, TISCO Public Company Limited., has requested to convert 1,039,900 preferred stocks to be common stocks at rate 1 preferred stock equals to 1 common stock as well as to convert 6,634 convertible debentures to be common stocks at rate 1 convertible debenture equals to 100 common stocks. Meanwhile, Credit Agricole Indosuez Bank has also requested to convert 1,509,700 preferred stocks to be common stocks at rate 1 preferred stock equal to 1 common stock. It is concluded that the total number of preferred stocks have been reduced from 31,408,200 stocks to read 28,858,600 stocks and the total number of convertible debentures have been reduced from 80,264 units to read 73,630 units. The paid up common stocks then have been changed from 22,551,200 units value Baht 225,512,000 to be 25,764,200 units value Baht 257,642,000. THAI PETROCHEMICAL: Power Plant Sale to Banpu Stumbles Anew ----------------------------------------------------------- The sale of Thai Petrochemical Industry's (TPI) power plant to Banpu Power Co has hit another snag and would likely delay the transaction for several months, reports Bangkok Post. Jesd Jesdpiyawong, executive consultant of Effective Planners, the debt administrator of TPI, says discussions could even "go back to square one" if disagreement between the creditors' steering committee and the board are not resolved. "We've anticipated the delay. It's not mainly due to protests by TPI's labor unions, but because the deal itself has yet to go before both the creditors' steering committee and Effective Planners' board for approval," he explained. "There are still a lot of misunderstandings over the plan, particularly among certain labor unions of TPI. More explanation is necessary," he said. Central to the eight unions' argument against the deal are the alleged disadvantageous terms of the deal, particularly the proposed 25-year contract to repurchase power from Banpu Power. Under the proposed purchase agreement, Banpu Power would pay $58 million in cash up front, while issuing $12 million in subordinated debentures carrying a 9% coupon rate over a 13-year term, says the paper. Another $30 million would be payable within 30 months of the approval of the environmental impact assessment report for the plant expansion plan, or by May 30, 2006. Once the plant is transferred to Banpu, the Company must increase generating capacity by at least 80 megawatts within three years from the current 108 megawatts in order to improve the reliability of steam and electricity supplies to the TPI group. Banpu must also retain the power plant's employees. Meanwhile, Mr. Jesd says the Court has moved the hearing to amend TPI's debt restructuring plan from June 25 to July 18. That amendment concerns the deadline for selling non-core assets worth US$200 million, which the administrator wants to be extended beyond March 31 next year. "The plan to complete the asset transfer of the plant to Banpu by September this year is also likely to be delayed," Mr. Jesd said. However, it would be too early to discuss whether the delay of the deal would affect the deadline to sell $200 million in non-core assets by March next year. TPI employs a total of 6,000 employees, says the paper. ********* 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. 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