/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/020911.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, September 11, 2002, Vol. 5, No. 180 Headlines A U S T R A L I A ANACONDA NICKEL: Jumps 11% Over Payout Report ANACONDA NICKEL: Plans To Collect A$39.8M From Fluor Daniel PMP LIMITED: Posts Notice of Change in Director's Interest UNITED MEDICAL: United Medical Protection Could Continue C H I N A & H O N G K O N G CENTURY INDUSTRIES: Faces Winding Up Petition CHINA EVERBRIGHT: Loses HK$204.8M in Slowdown CHINA SHIPPING: Selling Unprofitable Container Unit to Parent FEMAX INTERNATIONAL: Hearing of Winding Up Petition Set MANIFOLD CORPORATION: Winding Up Hearing Set for Sept 18 PLAYMATES INTERACTIVE: Narrows First-half Net Loss to HK$41.48M PLENTY UNITED: Court Sets October Winding Up Hearing YUGANG INTERNATIONAL: Posts Net Loss of HK$69.5M I N D O N E S I A ASTRA INTERNATIONAL: August Car Sales Fall 15% BANK MANDIRI: S&P Upgrades L-T Rating to Stable BANK NEGARA: S&P Revises Outlook to Stable BANK NIAGA: Commerce Bank Only Serious Bidder for 51% Stake KIMIA FARMA: Unilab to Bid for Dispensary Unit SEMEN PADANG: District Court Rejects Anew Semen Gresik Petition SINAR MAS: Pledges US$40M Payment to Creditors TEXMACO PERKASA: First-Half Net Loss Narrows to Rp5.687B J A P A N ALL NIPPON: Issuing Discount Coupons to Shareholders DAIEI INC.: Slashing JPY40B Debt at Fukuoka Operations DAIKYO INC.: Selling Five Group-Owned Buildings for JPY35.9B JEC CO.: Court Declares Bankruptcy MITSUBISHI MOTORS: DaimlerChrysler Invests EUR680 MM NIPPON TELEGRAPH: Units to Launch 12-Mb ADSL Service in November YAMATO MANEKIN: Applies for Civil Rehabilitation Proceedings * S&P Cuts Ratings on Five Japanese Life Insurers K O R E A SSANGYONG CORPORATION: Creditors Mull Rescue Fund SSANGYONG MOTOR: Creditors Considering Independent Survival M A L A Y S I A AMSTEEL CORPORATION: SC Okays Circular Information Disclosure CHASE PERDANA: SC Approves Debt Rehab, ESOT Proposals KELANAMAS INDUSTRIES: KLSE Okays Application for Time Extension L&M CORPORATION: Defaults in Payment of Credit Facility L&M CORPORATION: SA, Directors Hold Rehab Plan Meeting LAND & GENERAL: Completes Implementation of BAB Swap MYCOM BERHAD: Provides Status Update on Default Payment TECHNOLOGY RESOURCES: Facing September 20 Trading Suspension TENAGA NASIONAL: Shares Fall 1.6% on Foreign Selling TIME ENGINEERING: Replies to KLSE Query on Units' Liquidation P H I L I P P I N E S FIRST E-BANK: Banco De Oro Clarifies Manila Times Report FIRST E-BANK: ChinaTrust Clarifies Interest in Bid METRO PACIFIC: Ayala Conducts Due Diligence "Quietly" NATIONAL POWER: Submits 28 Supply Contracts for ERC Approval PICOP RESOURCES: Alfonso Cruz Steps Down as Director PRIMEPLAN INTERNATIONAL: Chinese Firm Will Infuse Capital URBAN BANK: Board Endorses 18 Director Candidates URBAN BANK: Announces EIB Merger Update URBAN BANK: Exportbank Schedules New Payments to Clients S I N G A P O R E ASIA PULP: Can Only Pay $20M by Month-end CHEW EU: LTA, SCOD Debar CEH Construction CYBERMAST LIMITED: Narrows First-Half Net Loss to S$1.236M ELLIPSIZ LIMITED: Widens FY02 Net Loss to S$23M GENERAL MAGNETICS: Widens First-Half Net Loss to S$1.97M SPP LIMITED: Announces Incorporation of Unit T H A I L A N D ADVANCE PAINT: Completes Reorganization Plan JASMINE INTERNATIONAL: Facing Debt Repayment Plan Blocking - - - - - - - - ================= A U S T R A L I A ================= ANACONDA NICKEL: Jumps 11% Over Payout Report --------------------------------------------- Anaconda Nickel dove 11 percent, or 3.5 cents, to 30 cents on reports that the arbitration deal over engineering dispute with Fluor Corp provides payout amounting to only one tenth of what analysts had expected. In a statement to the Australian Stock Exchange, Anaconda Nickel will receive a net payment of A$39.8 million from Fluor Daniel covering the first phase of their arbitration, which stems from Anaconda's claims of defects in screening and acid leach constructed by Fluor at the Murrin Murrin operation. According to Paterson Ords analyst Robert Brierley, substantial reengineering costs for Murrin Murrin have nowhere been recouped and was expecting up to US$200 million payment. ANACONDA NICKEL: Plans To Collect A$39.8M From Fluor Daniel ----------------------------------------------------------- The Arbitrators of the dispute between Anaconda Operations Pty Ltd, on behalf of the participants in the Murrin Murrin Joint Venture, and Fluor Australia Pty Ltd said yesterday that they have awarded A$147.6 million to Anaconda Operations Pty Ltd in respect of its claims against Fluor Australia, and an amount of A$107.8 million to Fluor Australia in respect of its counterclaims against Anaconda Operations. The net amount awarded to Anaconda Operations on behalf of the Joint Venture participants and now payable by Fluor Australia is A$39.8 million. Anaconda's subsidiary Murrin Murrin Holdings Pty Ltd (MMH) is entitled to 60% of this amount with the balance accruing to the other Joint Venture participant, Glenmurrin Pty Ltd. The interim award has determined firstly, Anaconda Operations' claims against Fluor relating to defects in the screening and acid leach circuits where the majority of technical difficulties in the plant have been encountered, and secondly, Fluor's counterclaim against Anaconda Operations relating to the bank guarantee drawn by Anaconda Operations and other contractual amounts previously withheld. The award also includes a sum of $5million in respect of Anaconda's trade practices claim. Phase 2 of the arbitration process relating to the balance of Anaconda Operations' claims totaling approximately A$160 million and covering other areas of the plant may continue for a further 12 months. As previously announced, Anaconda has a proposal before the secured creditors of MMH which includes a cash repayment at a discount to the face value of outstanding secured debt together with a substantial part of any amounts due under the Fluor Daniel arbitration. Under the terms of the proposal currently being ratified, the secured creditors will receive 90% of the amount awarded to MMH. Accordingly, the secured creditors will receive A$21.5 million and MMH will receive A$2.4 million from the interim award. Under the terms of the proposal with secured creditors Anaconda Operations will retain 25% of any amounts awarded in Phase 2 of the arbitration. PMP LIMITED: Posts Notice of Change in Director's Interest ---------------------------------------------------------- PMP Limited disclosed to the Australian Stock Exchange the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act. Name of Director: Marcia Anne Griffin Date of last notice: 05/06/2002 Part 1 - Change of director's relevant interests in securities Direct or indirect interest Direct Nature of indirect interest (including registered holder) Nil Date of change 04/09/2002 No. of securities held prior to change 25,641 Class Ordinary Number Acquired 4,102 Number disposed Nil Value/consideration $4,170.98 No. of securities held after change 29,743 Nature of change On market trade settled by application of directors fees. UNITED MEDICAL: United Medical Protection Could Continue -------------------------------------------------------- United Medical Protection (UMP)'s provisional liquidator David Lombe has recommended that the collapsed insurer be saved from full liquidation, Asia Pulse reported. Mr Lombe of Deloitte Touche Tohmatsu has appealed for the court to hold off winding up UMP to give the company breathing space, at least until the end of the year, as he looks for a potential buyer. According to Lombe, UMP was solvent and could continue to trade with government assistance. He further said that UMP was meetings its debts, so long as the government continued to cover the bill for outstanding claims through its rescue package. The liquidator, however, said in a report released by the New South Wales Supreme Court that liabilities for Incurred But Not Recorded (IBNR) claims, known as tail claims, were at A$338.6 million. Australia's biggest medical insurer covers more than 50 percent of doctors but it went into provisional liquidation in April this year. ================================ C H I N A & H O N G K O N G ================================ CENTURY INDUSTRIES: Faces Winding Up Petition --------------------------------------------- RBG Resources PLC (in liquidation) of Grant Thornton House, Melton Street, Euston Square, London NW1 2EP., U.K., is seeking for the winding up of Century Industries Limited. The petition was filed on August 3, 2002, and will be heard before the High Court of Hong Kong on October 30, 2002 at 10:00 a.m. CHINA EVERBRIGHT: Loses HK$204.8M in Slowdown --------------------------------------------- Mainland-backed financial services conglomerate China Everbright said last week it had swung to a first half HK$204.88 million net loss compared with a HK$552.18 million profit a year earlier. China Everbright owns 21.4 percent of the Beijing-based Everbright Bank, which admitted last month to accounting irregularities. It also has stakes in a bank and an insurance business in the SAR, where operations have been hit by a prolonged economic slowdown. Last year, China Everbright earned HK$371.43 million net profit. First-half turnover fell to HK$39.2 million from HK$119.11 million in the same period last year, while net losses from associate companies slumped to HK$150.78 million from last year's HK$216.81 million, it said in a statement through the Hong Kong Stock Exchange. China Everbright shares have lost more than 42 percent in the past three months. CHINA SHIPPING: Selling Unprofitable Container Unit to Parent ------------------------------------------------------------- Oil shipper China Shipping Development Co Ltd has agreed to sell its 25 percent stake in a loss-making unit, China Shipping Container Lines Co Ltd, to its controlling shareholder, China Shipping (Group) Co., for a token of 1 yuan. China Shipping said that competition, a cooling world economy, and shipping overcapacity had caused the unit's loss of 100 million yuan in the first half. The container unit has cumulative losses of 2.2 billion yuan ($265 million). FEMAX INTERNATIONAL: Hearing of Winding Up Petition Set ------------------------------------------------------- The petition to wind up Femax International Limited is set for hearing before the High Court of Hong Kong on November 11, 2002 at 10:00 am. Mei Luen Garment Factory Limited of Unit A, B & C, 11th Floor, Cheong Shing Industrial Building, 17 Walnut Street, Taikoktsui, Kowloon, Hong Kong, filed the petition with the said court on June 20, 2002. MANIFOLD CORPORATION: Winding Up Hearing Set for Sept 18 -------------------------------------------------------- The date for hearing of the petition to wind up Manifold Corporation Limited is scheduled for September 18, 2002 at 9:30 a.m. at the High Court of Hong Kong. Bank of China (Hong Kong) Limited of 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong, filed the petition on June 25. PLAYMATES INTERACTIVE: Narrows First-half Net Loss to HK$41.48M --------------------------------------------------------------- Playmates Interactive Entertainment Ltd, a toy developer, marketer and distributor, reported a net loss of HK$41.48 million for the six months ended June 30 from a loss of HK$43.76 million in the year-ago period. Company's turnover was reported at HK$122.29 million against a HK$136.55 from the same period last year, while loss per share was at 3.88 HK cents. The calculation of loss per share is based on the weighted average of 1,070.38 million shares compared to 871.54 million shares in issue during the period. The basic loss per share for the prior period has not been adjusted as the rights issue completed on May 7, 2002 does not give rise to a bonus element. PLENTY UNITED: Court Sets October Winding Up Hearing ---------------------------------------------------- Bank of China (Hong Kong) Limited is seeking for the winding up of Plenty United Limited. The petition was filed on July 10, 2002 at the High Court of Hong Kong, and will be heard before the said court on October 9, 2002 at 9:30 a.m. YUGANG INTERNATIONAL: Posts Net Loss of HK$69.5M ------------------------------------------------ Yugang International said it turned to a net loss of HK$69.5 million, or 0.82 cents a share, in the first six months from a net profit of HK$71.5 million, or 0.85 cents, a year earlier. Sales were up 47.3 percent to HK$124 million. It did not propose a dividend. The loss was mainly due to the provision for unrealized losses on securities investments of HK$57.1 million, a general provision for trade debtors of HK$10.2 million and a deemed loss on dilution of partial interest in a listed unit of HK$2.5 million as a result of exercise of its warrants. ================= I N D O N E S I A ================= ASTRA INTERNATIONAL: August Car Sales Fall 15% ---------------------------------------------- Carmaker PT Astra International sold 15 percent fewer cars in August compared with the same month in the previous year as domestic sales dropped. Astra's investor relations official said that the company's sales of assembled Toyota Motor Corp., Isuzu Motors Ltd., Daihatsu Motor Co. vehicles and other models fell to 14,432 units in August from 16,965 the same month a year earlier. Astra's domestic sales fell 19 percent to 10,849 units, while exports were unchanged at 3,583 units, the company said. BANK MANDIRI: S&P Upgrades L-T Rating to Stable ----------------------------------------------- Standard & Poor's Ratings Services has upgraded the outlook on PT Bank Mandiri's long-term foreign currency sovereign credit ratings to stable from negative, after it earlier upgraded Indonesia's sovereign ratings. S&P also affirmed its B- long-term local currency sovereign credit and senior unsecured debt rating, and its C short-term local currency sovereign credit and CCC subordinated debt rating on Bank Mandiri. Standard & Poor's Ratings Services has raised its long- and short-term foreign currency sovereign credit ratings on Indonesia to CCC+ and C, respectively, from selective default (SD). In July, Moody's Investors Service assigned a prospective rating of B3 to PT Bank Mandiri's proposed US$150 million subordinated notes due on 2012. International rating agency Fitch Ratings has also assigned an expected long-term foreign currency rating of B- to Bank Mandiri's proposed subordinated debt issue. Bank Mandiri, established in 1998 through the merger of four state-owned banks during the economic crisis, remains wholly owned by the government and is the largest bank in the system, controlling a quarter of system deposits. As a result of the government recapitalization, the bank holds a large percentage of its assets in recapitalization bonds, comprised largely of variable rate bonds. BANK NEGARA: S&P Revises Outlook to Stable ------------------------------------------ Standard & Poor's Ratings Services revised on September 5 the outlook on Bank Negara Indonesia (Persero) Tbk's (Bank BNI) foreign and local currency counterparty credit ratings to stable from negative. The outlook revisions follow Standard & Poor's outlook revision on the sovereign ratings on the Republic of Indonesia to stable from negative. The rating agency also affirmed Bank BNI's B- long-term local and foreign currency counterparty credit and senior unsecured debt ratings, and its C short-term local and foreign currency counterparty credit ratings. BANK NIAGA: Commerce Bank Only Serious Bidder for 51% Stake ----------------------------------------------------------- Commerce Asset Holding Bhd is the only potential investor for a 51 percent government stake in PT Bank Niaga, Bisnis Indonesia reported, citing Indonesian Bank Restructuring Agency (IBRA) deputy head I Nyoman Sender. The Commerce Asset Holding consortium was one of the final two bidders in the original sale of Bank Niaga before it was cancelled due to the low offers received. After relaunching the sale, IBRA also received expressions of interest from the ANZ Bank Group Ltd consortium, as well as the PT Bank Victoria International consortium and Batavia Investment Fund II Ltd. IBRA is expected to close the sale in October. KIMIA FARMA: Unilab to Bid for Dispensary Unit ---------------------------------------------- The Unilab Group of the Philippines wants to bid for the majority shares of the dispensary division of the state-owned pharmaceutical company PT Kimia Farma, after the division becomes an independent company, a company source told the newspaper Bisnis Indonesia. The source said two other foreign investors have shown strong interest in the dispensary subsidiary yet to be established. Kimia Farma plans to spin off its dispensary and wholesale divisions to concentrate only on its manufacturing operation. The government originally planned to divest a 51 percent stake in Kimia Farma this year but was postponed until mid-2003, as the company needs to be restructured first to increase its value. "We want Kimia to first restructure its divisions which consists of retail, distribution, manufacturing and formulation," Ferdinand Nainggolan, a senior state enterprises ministry official, said earlier, adding that Kimia will also undergo financial restructuring. By the end of 2001, Kimia, 90 percent owned by the government, had total assets of Rp1.2 trillion. SEMEN PADANG: District Court Rejects Anew Semen Gresik Petition --------------------------------------------------------------- The Padang district court has again rejected a petition by PT Semen Gresik against troubled unit PT Semen Padang, which would have paved way for the replacement of Padang's management, Semen Padang finance director Muchlis Karanin told AFX-Asia by telephone. Karanin said he heard the news on Saturday but is awaiting official documentation from the court. No other details were immediately available. Semen Gresik president director Satriyo was not available for comment. The first petition was rejected for technical reasons. Approval of the petition would have forced the West Sumatran- based subsidiary to hold an extraordinary general meeting (EGM), at which the central government, as Semen Gresik's majority shareholder, plans to replace the board of directors and commissioners. PT Semen Padang failed to pay its 200 billion rupiah debt to PT Jaminan Sosial Tenaga Kerja (Jamsostek) that matured on August 15. SINAR MAS: Pledges US$40M Payment to Creditors ---------------------------------------------- The Sinar Mas Group (SMG) has pledged to pay US$40 million as demanded by its creditors, including the Indonesian Bank Restructuring Agency (IBRA), to an escrow account as part of its debt-restructuring program. SMG spokesman Yan Partawidjaja said the company will pay US$20 million by the end of this month and the remaining US$20 million will follow by the end of next month. The creditors earlier demanded SMG to pay US$100 million not later than this month as a condition for the restructuring of debt of four pulp and paper subsidiaries in Indonesia. SMG paid US$60 million and asked the creditors to postpone payment of the remaining US$40 million. TEXMACO PERKASA: First-Half Net Loss Narrows to Rp5.687B -------------------------------------------------------- PT Texmaco Perkasa Engineering reported a net loss of 5.687 billion rupiah for the six months to June, against a loss of 513.939 billion rupiah in the same period the previous year. The engineering company also said that operating loss was at 130.197 billion rupiah for the fist half compared with a loss of 81.104 billion in the year-ago period. Sales, however, widened to 60.030 billion rupiah from 52.254 billion. The results are unaudited. ========= J A P A N ========= ALL NIPPON: Issuing Discount Coupons to Shareholders ---------------------------------------------------- All Nippon Airways Co. (ANA) will issue discount coupons to its shareholders to commemorate the 50th anniversary of its founding, Asia Pulse and Nikkei reported Monday. The airline will give shareowners holding 1,000 ANA shares or more as of September 30 discounts on international and domestic flights. A coupon will allow shareholders a 10 percent discount on domestic or international airfare. The coupons are valid from December 1 to November 2003. According to TCR-AP, ANA has carried out restructuring of the hotel business, selling off and securitizing the offshore hotels, as well as overhauled the lines jointly with the group companies to improve the earnings. In July, All Nippon posted a net loss of 9.5 billion yen for the year ended in March, the airline's fourth annual loss in five years. DAIEI INC.: Slashing JPY40B Debt at Fukuoka Operations ------------------------------------------------------ Retail operator Daiei Inc. will reduce its interest-bearing debt held by businesses in Fukuoka Prefecture by 35 to 40 billion yen in the next three years, the Nihon Keizai Shimbun and Nikkei reported Tuesday. Daiei's Fukuoka businesses, which cover such assets as hotels, a domed stadium and a baseball team, are profitable on an operating basis but weighed down by interest payments on debt totaling almost Y140 billion. Daiei aims to make the businesses profitable on a pretax basis by slashing debt. Daiei is planning to sell its real estate in Osaka, as well as their holdings of Daiei and OMC Card Inc. shares. The proceeds will be used to cut the Company's 20 billion yen in interest-bearing debt. It will also use free cash flow generated by the businesses in Fukuoka to pay down debt by more than 5 billion yen each year. DAIKYO INC.: Selling Five Group-Owned Buildings for JPY35.9B ------------------------------------------------------------ Condominium developer Daikyo Inc. is planning to sell its five group-owned buildings for 35.9 billion yen to Mori Trust Co., the Nihon Keizai Shimbun and Nikkei reported Tuesday. The sale proceeds will be used to pay group interest-bearing debts, which totaled 1.06 trillion yen at the end 2002. Eighteen lease buildings will remain in Daikyo's portfolio, with their fair value estimated at about Y70 billion. The Company is poised to receive a total of 470 billion yen in financial aid from four banks, including UFJ Holdings Inc. group member UFJ Bank, in the fiscal first half ending September 30. Under its business reconstruction plan, Daikyo aims to lessen interest-bearing debts to 490 billion yen by the end of 2002. JEC CO.: Court Declares Bankruptcy ---------------------------------- The Tokyo Shoko Research Ltd. (TSR) said on Monday that the Japan court has declared Jec Co., Ltd. bankrupt. The Company has total liabilities of 5.9 billion yen. The computer programming service firm, which has 282 employees, is located at Minomo-si, Osaka, Japan. MITSUBISHI MOTORS: DaimlerChrysler Invests EUR680 MM ---------------------------------------------------- DaimlerChrysler AG wants to invest 680 million euros to acquire a 40 percent stake in the truck and bus business due to be spun off by Mitsubishi Motors Corp (MMC) early next year, the BoersenZeitung reported. DaimlerChrysler will increase its influence on MMC, in which it holds a stake of 37.3 percent. MMC itself will also have a share of 40 percent in the new business, while the remaining 20 percent will be held by 10 other Mitsubishi group companies, BoersenZeitung reported. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 179, September 10, 2002) NIPPON TELEGRAPH: Units to Launch 12-Mb ADSL Service in November ---------------------------------------------------------------- NTT East Corporation and NTT West Corporation will launch its high-speed ADSL communications service with a speed of 12 megabits per second in November, compared with 8 megabits for conventional ADSL services, Asia Pulse reported Tuesday. Monthly charges will be set at 3,200 yen (US$27), 100 yen higher than the firms' 8-megabit service, and users will have to contract separately with an Internet provider. Two companies -- Nifty Corp. and NEC Corp., have already announced plans to become Net providers for the service. For ADSL users, actual communication speeds vary depending on the systems environment. Only those in a limited number of areas will be able to enjoy 12 megabits per second of speed. "Our service will be able to provide an average speed several hundred kilobits faster than 8-megabit services," said an official at NTT East. The two regional firms are subsidiaries of Nippon Telegraph and Telephone Company. YAMATO MANEKIN: Applies for Civil Rehabilitation Proceedings ------------------------------------------------------------ Yamato Manekin KK has applied for civil rehabilitation proceedings on Monday under the Civil Rehabilitation Law, according to Tokyo Shoko Research. The Company has total liabilities of 6 billion yen. The display advertising service Company, which has 72 workers, is located at Kyoto-si, Kyoto, Japan. * S&P Cuts Ratings on Five Japanese Life Insurers ------------------------------------------------- Standard & Poor's Corp (S&P) on Monday has lowered the insurer financial strength and counter party credit ratings of five major Japanese life insurance firms because their capitalization has worsened with the fall in Tokyo stock prices. The outlooks on the ratings on all five insurers are negative. S&P has downgraded the ratings of Asahi Mutual Life Insurance Co by two notches from B-minus to CCC, while it cut those of Meiji Life Insurance Co by one notch from A to A-minus. The ratings of Mitsui Mutual Life Insurance Co, Sumitomo Life Insurance Co and Yasuda Mutual Life Insurance Co were also lowered by one notch respectively from BB-minus to B-plus, BBB to BBB-minus, and from A-minus to BBB-plus. S&P noted the greater risks faced by the life insurers from their mutual holding of capital with Japanese banks. The asset risks assumed by the insurers in their excessive exposure to the domestic banks have increased due to the weakened credit profiles of the banks. Against the backdrop of falling stock prices, the five insurance companies recorded a total of 1.4 trillion yen in evaluation losses and in realized losses on securities as of March 2002. At the same time, the insurers' unrealized gains on domestic stock fell by roughly 550 billion yen, highlighting their exposure to the volatility of the domestic stock market. ========= K O R E A ========= SSANGYONG CORPORATION: Creditors Mull Rescue Fund ------------------------------------------------- Creditor banks of Ssangyong Corp. may provide 60 billion won in debt-to-equity conversions to avoid bankruptcy due to liquidity shortage, Digital Chosun reported Monday, citing largest creditor Cho Hung Bank. According to the Financial Supervisory Service (FSS), two mid- level managers of Ssangyong Corp. has committed fraud in an export financing deal, stealing a total of 113.7 billion won by falsifying export documents over the last 13 years. The names of the managers were not mentioned in the report. Cho Hung stressed that the Company may go bankrupt due to a liquidity shortage, as the export financing given to the firm is due to mature within 30 to 50 days. The largest creditor bank said it would convert W50 billion block of the stolen fund into convertible bonds. Creditor banks extended 210 billion won in debt-for-equity conversion to the firm in April, as the trading firm had been incurring heavy losses. SSANGYONG MOTOR: Creditors Considering Independent Survival ----------------------------------------------------------- Creditors of Ssangyong Motor Co. have decided to reconsider the asset sale plan of the Company, after its prospective buyer, the Peugeot-Citroen consortium, dropped its bid, the Naeway Economic Daily and AFX Asia reported Friday. The report said that the carmaker is expected to continue its strong sales performance well into next year, raising the chances for independent survival. Creditors are planning to hire a consulting firm to reevaluate the carmaker and decide on its future fate based on the results of the study by the end of 2002. According to TCR-AP, at end-March, Ssangyong Motor's liabilities totaled 1.813 trillion won, while its interest-bearing debt was 868.5 billion won. =============== M A L A Y S I A =============== AMSTEEL CORPORATION: SC Okays Circular Information Disclosure ------------------------------------------------------------- On behalf of the Board of Directors of Amsteel Corporation Berhad, OSK Securities Berhad wishes to announce that the Securities Commission had vide its letter dated 5 September 2002, which was received on 6 September 2002, approved the waiver sought by Amsteel for the dispatch of the information circular to the shareholders of Amsteel. The circular is in relation to the Proposals, as follows: * Proposed disposal by Lion Ipoh Parade Sdn Bhd (LIP), a wholly owned subsidiary of Ayer Keroh Resort Sdn Bhd, which is in turn a 70%-owned subsidiary of Amsteel Corporation Berhad, of the entire equity interest in Peridan (M) Sdn Bhd for a cash consideration of RM754,998; * Proposed disposal by LIP of the entire equity interest in Arus Setia Sdn Bhd for a cash consideration of RM2; * Proposed discharge by LIP of Peridang from the repayment of the Net Inter-company amounts outstanding for a cash consideration of RM10,037,344; * Proposed discharge by LIP of Arus from the repayment of the Net Inter-company amounts outstanding for a cash consideration of RM1,039,809. CHASE PERDANA: SC Approves Debt Rehab, ESOT Proposals ----------------------------------------------------- On behalf of the Board of Directors of Chase Perdana Berhad, Southern Investment Bank Berhad (SIBB) wishes to announce that the Securities Commission (SC) has, via its letter dated 6 September 2002, approved the proposed debt restructuring scheme and proposed Employees' Share Option Scheme (ESOS) as follows: (i) capital reconstruction involving a reduction of the issued and paid-up share capital by RM0.90 for every one (1) existing CPB ordinary share of RM1.00 each, an issuance of six (6) new CPB ordinary shares of RM0.10 each and consolidation of the reduced issued and paid-up share capital on the basis of ten (10) CPB ordinary shares of RM0.10 each into one (1) new CPB ordinary share of RM1.00 each, as proposed; (ii) cancellation of CPB's share premium account as at 31 December 2000 amounting to RM159,553,660, as proposed; (iii) restructuring, waiver and settlement of debts via the issuance of new CPB private debt securities, new CPB ordinary shares, new CPB preference shares and cash settlement, as proposed, as shown in http://bankrupt.com/misc/cpd.pdf; (iv) rights issue of 28,081,602 new CPB ordinary shares of RM1.00 each at an issue price of RM1.00 each on the basis of three (3) new ordinary shares for every one (1) existing CPB ordinary share of RM1.00 each after the capital reconstruction of CPB, as stated above, (Proposed Rights Issue), compared to the rights issue of 28,081,602 new CPB ordinary shares of RM1.00 each at an issue price of RM1.00 each on the basis of three (3) new ordinary shares (Rights Shares) for every one (1) existing ordinary share together with three (3) new CPB warrants for every two (2) Rights Shares subscribed, as proposed; (v) conditional restricted issue of up to 28,081,602 new CPB ordinary shares of RM1.00 each at an issue price of RM1.00 each together with an additional restricted issue of new CPB ordinary shares of RM1.00 each to meet the minimum share capital requirement of RM40 million to minority shareholders of CPB apart from Tan Sri Datuk Dr Mohan M.K. Swami (TSDDM) and parties related to him (Proposed Conditional Restricted Issue), compared to the conditional restricted issue of up to 28,081,602 new CPB ordinary shares of RM1.00 each at an issue price of RM1.00 each together with 42,122,403 warrants to TSDDM, as proposed; (vi) placement of CPB ordinary shares of RM1.00 each by TSDDM or other parties concerned to the public, if necessary, to meet the minimum public shareholding spread of 25%, compared to the placement of CPB shares by TSDDM, if necessary, as proposed; (vii) mandatory assets disposal program for properties of scheme companies within a period of two (2) years from the date of the In-Principle Agreement dated 6 March 2002, as proposed; (viii) establishment of ESOS granting options for new CPB ordinary shares up to 10% of the issued and paid-up share capital of CPB, as proposed; and (ix) listing and quotation of new CPB ordinary shares and new CPB Redeemable Convertible Preference Shares (RCPS) pursuant to the above proposals together with new CPB ordinary shares to be issued upon conversion of the Redeemable Convertible Secured Loan Stocks (RCSLS), Redeemable Convertible Unsecured Loan Stocks (RCULS) and RCPS as well as the exercise of ESOS on the Kuala Lumpur Stock Exchange (KLSE). In relation to the proposed exemption from the requirements of paragraph 2(a) of the SC's Policies and Guidelines on the Issue/Offer of Securities (Guidelines) in relation to ESOS, the SC has advised that the said proposal is not approved except in the case of a share buy-back. Paragraph 2(a) of the SC's Guidelines on ESOS states that the number of options offered under an ESOS should not exceed 10% of the issued capital at any one time. The SC noted that proceeds from the Proposed Rights Issue and Proposed Conditional Restricted Issue based on the issue price of RM1.00 each will be utilized for the core business of CPB Group as shown in http://bankrupt.com/misc/cpb_proceeds.pdf. Conditions to be met for the utilization of the proceeds from the Proposed Rights Issue and Proposed Conditional Restricted Issue are as follows: (i) SC's approval must be obtained for any variation to the original utilization of proceeds if the said variation involves the utilization of proceeds for non-core businesses of CPB; (ii) approval of CPB's shareholders must be obtained for any variation of 25% or more over the said original utilization of proceeds. If the variation to be effected is less than 25%, appropriate disclosures must be made to the shareholders of CPB; (iii) any extension of time from that determined by CPB for the utilization of the said proceeds must be approved by a clear resolution of the Board of Directors of CPB and be fully disclosed to the KLSE; and (iv) appropriate disclosures pertaining to the utilization of the said proceeds must be made in the Quarterly Reports and Annual Reports of CPB until the proceeds have been fully utilized. The SC's approval is also conditional upon the following conditions: (i) the conditional restricted issue and the additional restricted issue of new CPB ordinary shares of RM1.00 each at an issue price of RM1.00 each to meet the RM40 million minimum paid-up capital requirement must first be offered to all minority shareholders of CPB, other than TSDDM and parties related to him. If the offer is not taken up by the minority shareholders of CPB, TSDDM can subscribe for the said restricted issue shares, as proposed. In relation to this, CPB/SIBB must fully comply with Chapter 15 of the SC's Guidelines; (ii) CPB Group shall cease all financial services and investment activities which are not related to the core business of the CPB Group and must not be involved in such activities in future; (iii) CPB must disclose in the circular to shareholders and prospectus the risks involved in CPB's restructuring exercise together with the business and financial risks of CPB after completion of the implementation of CPB's restructuring exercise; (iv) CPB must submit the valuation reports of all CPB Group's properties which are subject to the mandatory assets disposal program for the review and approval of the SC prior to the disposal of the relevant properties; (v) CPB must fully disclose all charges taken against TSDDM and Gomathi @ Usha Nathan A. Vaidyanathan by the SC for offences under the securities legislations in the circular to shareholders and prospectus of CPB; (vi) CPB must first endeavor to obtain external underwriters to underwrite the Proposed Rights Issue and SIBB must submit a confirmation to the SC of such efforts. If CPB fails to obtain external underwriters, TSDDM must comply with his undertaking to subscribe for the un-subscribed shares pursuant to the said Proposed Rights Issue, as proposed; (vii) CPB must ensure that the proposed share placement to meet the 25% public shareholding spread is implemented prior to the listing of new CPB securities to be issued pursuant to the proposed restructuring on the KLSE; (viii) CPB must obtain approvals from other authorities and comply with the conditions imposed (if any); (ix) CPB must comply with the conditions imposed in relation to the rating exemption for the RCSLS and RCULS as stated in the SC's letter dated 5 April 2002; (x) SIBB must submit a final copy of the ESOS bye-laws for the SC's record; (xi) SIBB must submit a confirmation letter stating that CPB has: (a) complied with all conditions of the SC's approval and that CPB's ESOS bye-laws do not contravene the SC's guidelines on ESOS; and (b) complied with the requirement to obtain other relevant approvals for the said ESOS and has complied with the conditions imposed, if applicable; the date of the confirmation letter submitted to the SC as stated in (xi) above, shall be the effective implementation date of the said ESOS; (xii) the SC's approval must be obtained for any variation to the terms and conditions for the RCSLS, RCULS and RCPS; (xiii) prior to the issuance of the RCULS, SIBB and CPB must submit the executed trust deed to the SC; and (xiv) SIBB and CPB are required to fully comply with the relevant requirements in relation to implementation of the said proposals as stated in the Guidelines and the Guidelines on Offer of Private Debt Securities. In addition, CPB is also required to establish and practice good corporate governance structure in line with the requirements and recommendations under the Malaysian Code of Corporate Governance. The Board of Directors of CPB has deliberated and accepted all the conditions imposed by the SC except for condition (vii) above in which they would want to make an appeal. The SC had via its letter dated 5 April 2002, approved the exemption from rating for the RCSLS and RCULS subject to the following conditions: (a) the RCSLS and RCULS to be issued by CPB must only be held by financial institutions, trade creditors and other creditors and shall be non-transferable and non-tradeable (in relation to the issuance of RCULS, the RCULS shall remain non-transferable and non-tradeable until it has been rated); (b) holders of the RCSLS and RCULS do not require rating for the said RCSLS and RCULS; and (c) SIBB is to confirm in writing the adherence to the above conditions. KELANAMAS INDUSTRIES: KLSE Okays Application for Time Extension --------------------------------------------------------------- AmMerchant Bank Berhad (formerly known as Arab-Malaysian Merchant Bank Berhad), on behalf of Kelanamas Industries Berhad (KIB), announced that the Kuala Lumpur Stock Exchange has, vide its letter dated 9 September 2002, approved KIB's application for an extension of time from 3 August 2002 to 30 August 2002 to make the required submission to the authorities. As previously announced, the submission had been made to the relevant authorities on 30 August 2002. Early this year, TCR-AP reported that KIB had entered into a Restructuring Scheme Agreement (RSA) with MP Technology Resources Berhad (MPTR), which involves the injection of the following companies into MPTR: a) Tai Seng Plastic Industries Sdn Bhd (Tai Seng) b) Eng Zan Machinery & Trading Sdn Bhd (Eng Zan) c) Highlight Plastic Machinery Sdn Bhd (HL) d) VCM Precision Sdn Bhd (VCM) e) Tralvest (M) Sdn Bhd (Tralvest) f) MP Plastic Industries Sdn Bhd (MPPI) L&M CORPORATION: Defaults in Payment of Credit Facility ------------------------------------------------------- Further to the announcement made on 30 August 2002 in respect of the appointment of Special Administrators (SA) for L & M Corporation (M) Bhd and refer to the Kuala Lumpur Stock Exchange's letter dated 5 September 2002. The SA are pleased to append hereunder the following additional information: 1. Events Leading to the Appointment of Special Administrators SA advise that L&M had defaulted in the repayment of credit facilities owing to Pengurusan Danaharta Nasional Berhad. As a result, Danaharta had exercised its powers under the provisions of the Pengurusan Danaharta Nasional Berhad Act, 1998 and effected appointment of the SA on 30 August 2002. 2. Terms of Reference of the Special Administrators The SA's main term of reference is to prepare a Workout Proposal, which will comprise a debt restructuring scheme to address the debts of the L&M and its subsidiary companies (L&M Group). In this connection, the SA had on 30 August 2002 informed the Exchange that they will be inviting prospective proposers/White Knights to evaluate and submit proposals to restructure the L&M Group. The SA have prepared an information Memorandum and will be holding a briefing to prospective proposers/White Knights on 11 September 2002 to be held at Danaharta's office. Depending on the outcome of the open tender exercise and on the proposals received, the SA will prepare a Workout Proposal which will aim to regularise the financial conditions of the L&M Group. The Workout Proposal must be examined by an Independent Adviser, whose role is to review the reasonableness of the proposal, taking into consideration the interests of all creditors (whether secured or unsecured) and shareholders. A meeting of secured creditors will then be held to vote on the Workout Proposal. Once approved by the secured creditors, the Workout Proposal will be submitted to the authorities for further approval prior to its implementation. 3. Financial and Operational Impact of the Appointment on the Group The appointment of SA will not have any immediate financial impact on the L&M Group. The SA have however assumed control of all operations of L&M at the holding company level and have since the date of appointment taken control and possession of its assets and records. 4. Steps Taken or Proposed to be Taken by the Company in respect of the Appointment of Special Administrators The SA have assumed control of the assets and affairs of L&M with effect from 30 August 2002. The powers of the management and the Board of Directors of L&M were effectively suspended and only the SA can deal with L&M's assets and affairs. L&M CORPORATION: SA, Directors Hold Rehab Plan Meeting ------------------------------------------------------ The Special Administrators of L & M Corporation (M) Bhd (Special Administrators Appointed) said Monday that further to their appointment by Pengurusan Danaharta Nasional Berhad pursuant to Section 24 of the Pengurusan Danaharta Nasional Bhd Act 1998 on 30 August 2002, the Special Administrators have held meeting with the Board of Directors of the Company on 5 September 2002 on the proposed group restructuring scheme. The Board of Directors of the Company informed the Special Administrators that Eastern Atlas Bhd, the newly incorporated company set up to facilitate the implementation of the Proposed Scheme, had on 29 August 2002 rescinded the Acquisition Agreements entered into with Satujaya Sdn Bhd, Vistashine Sdn Bhd and Kayman Integrated Sdn Bhd, all dated 21 November 2000. Details of the Proposed Scheme had been announced to the Exchange on 24 November 2000. The Special Administrators further announced that they had on 5 September 2002 received a letter from the solicitors acting for the shareholders of Satujaya Sdn Bhd, Vistashine Sdn Bhd and Kayman Integrated Sdn Bhd to express their non-acceptance of the said rescission by Eastern Atlas Bhd. The Special Administrators and the directors of Eastern Atlas Bhd are presently seeking legal advice on this matter and will make further appropriate announcement in due course. LAND & GENERAL: Completes Implementation of BAB Swap ---------------------------------------------------- Commerce International Merchant Bankers Berhad (CIMB), on behalf of the Board of Directors of Land & General Berhad (L&G), wishes to announce that L&G has on 5 September 2002 completed the implementation of the BAB Swap. CIMB said that 29,634,164 ordinary shares of RM1.00 each in BAB have been transferred to the Settlement Agent for distribution to the Eligible Scheme Creditors. Accordingly, L&G has fully settled RM207.439 million of its indebtedness pursuant to the BAB Swap. MYCOM BERHAD: Provides Status Update on Default Payment ------------------------------------------------------- Pursuant to Practice Note No. 1/2001 in relation to Paragraph 9.04 (l) of the Listing Requirements, the Board of Mycom Berhad wishes to announce that there had been no further development since the last monthly status announcement on 8 August 2002. The solicitors for both RHB Bank Berhad and OCBC Bank (Malaysia) Berhad had applied for Order 14 against Tingkayu Plantation Sdn Bhd and Pertama Land & Development Sdn Bhd and the hearing date has now been fixed on 15 October 2002. TECHNOLOGY RESOURCES: Facing September 20 Trading Suspension ------------------------------------------------------------ To facilitate the recalling and cancellation of the existing Technology Resources Industries Berhad (TRI) shares and the distribution of Celcom (Malaysia) Berhad shares to the shareholders of TRI pursuant to the capital repayment on the basis of one (1) Celcom share for every one (1) TRI share held, the trading of TRI shares will be suspended with effect from 9.00 a.m. on Friday, 20 September 2002, that is three (3) clear Market Days prior to the Entitlement Date, and the last day of trading of TRI shares shall be Thursday, 19 September 2002. The TRI shares shall cease to be valid for trading purposes upon the listing of and quotation for the Celcom shares on the KLSE. The Celcom shares shall be listed in place of the TRI shares upon re-quotation. Henceforth when trading commences, dealings shall only be in the shares in Celcom. Your attention is also drawn to TRI's information Circular in relation to the Capital Repayment to be dispatched on 10 September 2002. TENAGA NASIONAL: Shares Fall 1.6% on Foreign Selling ---------------------------------------------------- Tenaga Nasional share price was down 1.6 percent at MYR9.35 on 335,000 shares on foreign selling, Dow Jones Newswires reported. Broker said selling was partly due to concerns over additional cost of using alternative fuels. Tenaga is currently facing shortage of gas supply. Adverse external developments also cited as part of reason for share price weakness. TIME ENGINEERING: Replies to KLSE Query on Units' Liquidation ------------------------------------------------------------- Time Engineering Berhad refers to the Kuala Lumpur Stock Exchange's query letter dated 6 September 2002 in respect of notices on Members' Voluntary Liquidation on TIME Dormant Subsidiary Companies appearing in The Star, Classified section, page 8 on Friday 6 September 2002. The TIME Dormant Subsidiary Companies include: * Gelombang Udara Sdn Bhd * Martimex Sdn Bhd * Modcomp IT (M) Sdn Bhd * Penjanaan Tenaga Perlis Sdn Bhd * Time Holdings Sdn Bhd * Time Instrumentations and Controls Sdn Bhd * Time Properties Sdn Bhd * Time Weldmaterials Sdn Bhd * United Fibre Industrial Sdn Bhd The company said it released the announcement on Members' Voluntary Liquidation of TIME Dormant Subsidiary Companies to the Exchange on 30 August 2002 concurrent with the announcement on quarterly unaudited financial statements for the period ended 30 June 2002. In response to the Exchange's queries, Time Engineering provides below the information: 1. TOTAL COST OF INVESTMENT IN TIME DORMANT SUBSIDIARY COMPANIES The total cost of investment in TIME Dormant Subsidiary Companies was RM22,890,000. The provision for diminution in value of investment in TIME Dormant Subsidiary Companies of RM22,890,000 was made in the Company's audited financial statements for the year ended 31 December 2001. 2. FINANCIAL AND OPERATIONAL IMPACT OF THE MEMBERS' VOLUNTARY LIQUIDATION ON THE TIME GROUP There was a net gain of RM8,787,000 to the Company arising from the waiver of amount owing to TIME Dormant Subsidiary Companies as reported in the Company's audited financial statements for the year ended 31 December 2001 appearing on page 105 of the Annual Report 2001. There is no other financial impact to the TIME Group as all these wholly owned subsidiary companies are dormant. 3. EXPECTED LOSSES, IF ANY, ARISING FROM THE MEMBERS' VOLUNTARY LIQUIDATION There are no losses expected arising from the Members' Voluntary Liquidation of TIME Dormant Subsidiary Companies. 4. RATIONALE FOR MEMBERS' VOLUNTARY LIQUIDATION As explained in the announcement made on 30 August 2002, the Company has decided to wind-up TIME Dormant Subsidiary Companies as part of the Group's effort to focus on the business objectives of the TIME Group. 5. DATE OF RESOLUTIONS PASSING THE MEMBERS' VOLUNTARY LIQUIDATION OF TIME DORMANT SUBSIDIARY COMPANIES The date of passing the special resolution on Members' Voluntary Liquidation of TIME Dormant Subsidiary Companies and appointment of Liquidators was on 28 August 2002. 6. DATE OF APPOINTMENT OF LIQUIDATORS The Liquidators were appointed on 28 August 2002 pursuant to the special resolution and the notice of appointment of Liquidators was duly lodged with the Companies Commission of Malaysia on 3 September 2002. ===================== P H I L I P P I N E S ===================== FIRST E-BANK: Banco De Oro Clarifies Manila Times Report -------------------------------------------------------- Banco De Oro Universal Bank, with reference to the news article entitled "Banks scramble to buy First e-bank's branches" published in the September 6, 2002 issue of the Manila Times. The article reported that "A number of local banks are competing for the right to buy the 60-branch network of First e-bank, a thrift bank subsidiary put on sale by the Metro Pacific Group. The interested banks now include Banco de Oro, owned by retail giant Henry Sy Sr. and China Trust Bank, which has Taiwanese principals. Banco de Oro Universal Bank (BDO), in its letter to the Exchange dated September 6, 2002, clarified that: We had proposals to acquire First e-Bank's branches as early as November 2001 but despite serious discussions, no agreement was concluded with the Metro Pacific Group. Banco de Oro currently has an outstanding proposal to acquire assets and assume liabilities, both on a selective basis, of First e-Bank. FIRST E-BANK: ChinaTrust Clarifies Interest in Bid -------------------------------------------------- Chinatrust (Philippines) Commercial bank Corporation (CHTR) clarified the news article entitled "Banks scramble to buy First e-bank's branches," published in the September 6, 2002 issue of the Manila Times. The article reported that "A number of local banks are competing for the right to buy the 60-branch network of First e-bank, a thrift bank subsidiary put on sale by the Metro Pacific Group. The interested banks now include Banco de Oro, owned by retail giant Henry Sy Sr. and China Trust Bank, which has Taiwanese principals. Chinatrust (Phils.) Commercial Bank Corporation (CHTR), in its letter dated September 9, 2002, advised that: "The Bank has not communicated nor expressed any desire to buy First eBank's branches. Management nor the Board of Directors currently has no intention to purchase said bank." According to TCR-AP, First E-Bank posted a net loss of 279.784 million pesos in the first quarter to March, versus a loss of 261.984 million pesos in 2001, because of lower interest income. The firm is a unit of Metro Pacific Corporation. As of end-2001, Metro Pacific has 18.5 billion pesos in consolidated interest bearing liabilities. METRO PACIFIC: Ayala Conducts Due Diligence "Quietly" ----------------------------------------------------- Teaming up with businessman Jose Campos of United laboratories, Ayala Corp has been "quietly" conducting due diligence on Bonifacio Land Corp as it might consider acquiring Metro Pacific Corp's controlling stake in the Company, the Business World newspaper reported. Ayala Corp is said to be preparing its bid in case the deal between First Pacific Co Ltd, parent firm of Metro Pacific, and the Gokongwei group to form a joint venture to acquire control of Bonifacio Land and Philippine Long Distance Telephone Co falls through. The report said Metro Pacific has already reached an agreement with the potential buyers on Friday, though it added that the parties concerned have denied it. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 179, September 10, 2002) NATIONAL POWER: Submits 28 Supply Contracts for ERC Approval ------------------------------------------------------------ The National Power Corp submitted to the Energy Regulatory Commission (ERC) on August 30 its transition supply contracts with 28 distribution utilities, but has yet to firm up its transition supply deal with Manila Electric Co., AFX Asia reported Monday. Aside from the deals submitted to the ERC, The power Company has signed supplemental agreements with 31 power distributors and expects to settle another 31 transition supply contracts, according to Napocor marketing and commercial department head Maharlika Ferina. Napocor is still negotiating with Meralco for their transition supply contract, which has been stalled since September of 2002 due to a dispute over an existing 10-year power supply pact. Napocor wants Meralco to honor the supply pact requiring it to buy 3,600 megawatts of its monthly power needs from Napocor, while Meralco wants to nullify the agreement before entering into a transition supply deal with Napocor. The power sector reform law requires the Napocor to formulate transition supply contracts with power distributors. The transition deals will permit the privatization of Napocor's power generation assets since they are assignable to the generation companies succeeding Napocor. PICOP RESOURCES: Alfonso Cruz Steps Down as Director ---------------------------------------------------- Picop Resources, Inc. (PCP), in its letter dated September 5, 2002, informed the Philippine Stock Exchange that: "The Company received on Friday a letter of resignation of Mr. Alfonso B. Cruz, Jr., Director of Picop Resources, Inc., representing Land Bank of the Philippines, the biggest single creditor. The Board will act on his resignation at its scheduled quarterly meeting on October 31, 2002. Picop expects a suggestion from Land Bank on his replacement. According to Wright Investors Service, at the end of 2001, PICOP Resources Incorporated had negative working capital, as current liabilities were 1.71 billion Philippine Pesos while total current assets were only 1.29 billion Philippine Pesos. PRIMEPLAN INTERNATIONAL: Chinese Firm Will Infuse Capital --------------------------------------------------------- Chinese firm Brighsun will acquire Primeplan International Corporation through the injection of fresh capital to cover its paid-up capital deficiency, the Philippine Star reported Monday, citing Emil Aquino, the head of the non-traditional department of the Securities and Exchange Commission. Primeplan was given until the end of August to settle its P14.8- million capital deficiency or it faces suspension of its license. According to the Securities Exchange Commission, a pre-need plan firm must have a paid-up capital of at least P50 million to be able to sell at least one plan type. The Company, which sells pension plans, has 6,336 plan holders as of April 2002. Pre-need firms are required to gradually build up their capital to 100 million pesos. New entrants, however, are required to have a paid-up capital of 100 million pesos. URBAN BANK: Board Endorses 18 Director Candidates ------------------------------------------------- These nominees were endorsed by the Board as eligible candidates for election to the Board of Directors of Urban Bank at the annual stockholders' meeting to be held on September 12, 2002: Sergio R. Ortiz-Luis Jr. Benjamin P. Castillo Donald G. Dee Alfredo M. Yao Paterno H. Dizon Hermenegildo C. Zayco Pauline C. Tan Jeffrey S. Yao Dionisio E. Carpio, Jr. Victor N. Te Reynaldo G. David Oscar de Venecia David T.C. Ng Bobby Sai Chong Cheng Wong Sai Hing Zhixiang Zhang Jose E.B. Antonio Francis Lee. TCR-AP reported that 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. In July, an official of Export and Industry Bank (Exportbank) says the bank is now in talks with other commercial banks for the possible sale of some of the closed bank's branches it had inherited from the closed Urban Bank, Business World reported. He also stressed the number of branches to be sold, should the talks with other banks progress, will be very minimal. URBAN BANK: Announces EIB Merger Update --------------------------------------- This announcement is in reference to Circular for Brokers No. 268-2002 dated February 4, 2002 pertaining to the approval by the SEC of the merger among Urbank Bank Inc., Urbancorp Investment, Inc. and Export and Industry Bank, Inc. In relation thereto, the Bank submitted to the Exchange a comprehensive disclosure relative to the aforementioned merger. A copy of the disclosure is available at the Philippine Stock Exchange (PSE) Centre and PSE Plaza Libraries. Meanwhile, AFX Asia reported that The Philippine Stock Exchange would implement the change in Urban Bank's corporate name to Export and Industry Bank and the corresponding change in its ticker by September 9. URBAN BANK: Exportbank Schedules New Payments to Clients -------------------------------------------------------- The Export and Industry Bank (Exportbank) will schedule another tranche of payments to depositors of Urban Bank on September 14, Business World reported Friday, citing Exportbank Chairman Sergio Ortiz-Luis Jr. The payment to Urban Bank depositors is part of a three-year schedule plan. Exportbank bought Urban Bank and merged the two banks' operation in 2001. Urban Bank went on a bank holiday in 2000. As part of Urban Bank's rehabilitation, Exportbank is planning to open operations of around 20 of the 27 branches of the bank. "This year we opened six, for the rest of the year we will open one a month. Next year, we will open some more branches, but we have to look at whether there will be redundancies in branches, so around 20 will be opened," he said. Exportbank is set to reopen Urban Bank's brokerage firm, Urban Securities but to be renamed as EIB Securities. ================= S I N G A P O R E ================= ASIA PULP: Can Only Pay $20M by Month-end ----------------------------------------- Asia Pulp & Paper Co. (APP) can only make half of the $40 million debt payment demanded by Indonesia's Bank Restructuring Agency (IBRA) and other creditors by the end of September, Bloomberg reported Friday, citing Asia Pulp Director Gandi Sulistiyanto. APP's deposit into an escrow account was to have completed a $100 million payment requested by creditors negotiating the repayment of $13 billion in debt that Asia Pulp stopped paying in March 2001. The paper Company paid only $60 million in August. IBRA said it has until the end of September to pay the rest. In August, Asia Pulp last defeated an attempt by some creditors to have a Singapore court replace the management of the Company, which operates pulp and paper mills in Indonesia and China. According to the High Court Justice Lai Siu Chiu, another attempt might succeed if the debt talks don't progress. To meet the demands of creditors including export credit agencies from the U.S., Japan and Germany, APP must also start paying $30 million monthly into the third-party account while debt talks resume. The Company has asked to make smaller payments. DebtTraders reports that Asia Pulp's 11.75 percent bonds due on 2005 (APP7) are trading between 28.5 and 30.5. Go to http://www.debttraders.com/price.cfm?dt_sec_ticker=APP7for real-time bond pricing. CHEW EU: LTA, SCOD Debar CEH Construction ----------------------------------------- Chew Eu Hock Holdings Limited, with reference on its announcement on August 15, 2002, the Board of Directors of the Company wishes to announce that the Land Transport Authority (LTA) and the Standing Committee on Debarment (SCOD) has debarred its wholly owned subsidiary CEH Construction for a period of 2.5 years with effect from 11 September 2002 to 10 March 2005, due to and following CEH Construction's novation of the project at Queensway, Commonwealth Avenue Road Interchange, Contract Number 3214. As announced on August 15, 2002, CEH Construction has been placed in judicial management since November 7, 2001, and the Company and its group of companies has not secured any new contracts in the last financial year. In addition, in view of the Group's cash flow problems, the Group had novated and/or subcontracted its remaining contracts to minimize further losses. As previously announced, the Company has entered into an option agreement and a supplemental deed in relation to the acquisition of certain companies of Hiap Hoe Holdings Pte Ltd and the issue and allotment of shares in the Company in consideration therefore (the Acquisition). In addition, the judicial manager of CEH Construction is in the process of finalizing a scheme of arrangement with its creditors (the Scheme) to restructure the liabilities of CEH Construction. As the debarment is pertinent only to CEH Construction, the Board of Directors is of the view that the debarment will not apply to the enlarged group following the Acquisition in relation to private sector projects. The Group intends to make an application to appeal to SCOD to seek lifting of the debarment on the basis that the Scheme and the Acquisition being completed, as the enlarged group will then be in a better position to tender for new public sector projects. The Company is in the process of seeking the approval of the Singapore Exchange Securities Trading Limited (SGX-ST) in respect of the Acquisition. The extraordinary general meeting of the Company to seek the approval of its shareholders in respect of the Acquisition and the Scheme, and the creditors meeting to seek the approval of the creditors of CEH Construction in respect of the Scheme, will be convened as soon as practicable after the approval-in-principle of the SGX-ST is obtained. Thereafter, the Company will announce the progress and development of the Scheme and the Acquisition in due course. Directors Responsibility Statement The Directors collectively and individually accept full responsibility for the accuracy of the information given in this Announcement, and confirm, after making all reasonable enquiries, that to the best of their knowledge and belief, the facts stated and opinions expressed in this Announcement are fair and accurate in all material aspects as at the date hereof, and that there are no material facts the omission of which would make this Announcement misleading. CYBERMAST LIMITED: Narrows First-Half Net Loss to S$1.236M ---------------------------------------------------------- Cybermast Ltd posted a net loss of S$1.236 million in the six months to versus 3.607 million a year earlier despite weaker sales as lower costs mitigated the fall in sales, AFX Asia reports. Financial Results: Sales - S$452,000 versus 991,000 Net loss - S$1.236 million versus loss 3.607 million Loss per share - S$2.20 cents versus loss 6.55 Interim div - nil; unchanged ELLIPSIZ LIMITED: Widens FY02 Net Loss to S$23M ----------------------------------------------- Ellipsiz Limited posted a net loss of S$23.1 million for the fiscal year to June, Kelive reports. Ellipsiz's cash position was also eroded by some S$15 million from S$59.4 million to S$44 million as a result of the significantly weaker operations. Looking ahead, management stated that outlook for the Company remains murky and it is currently working on a new business model for the Advanced Packaging Solutions Group which has a burn rate of S$600k to S$800k per month for MicroFab alone. While it is comforting to know that overall orders for the first two months of fiscal 2003 is firmer on a year on year basis, management could not offer visibility beyond Q1. Although losses are expected to narrow after this round of big bath accounting by the Company, Kelive would not turn buyers until the outlook for the industry or the Company clears up. GENERAL MAGNETICS: Widens First-Half Net Loss to S$1.97M -------------------------------------------------------- General Magnetics incurred a net loss of S$1.97 million in the six months to June, versus a net loss of 1.577 million in the previous year, because of weak demand and lower selling prices of both magnetic and optical media products, AFX Asia reported Friday. Financial Results: Sales - S$12.776 million versus 14.612 million Net loss - S$1.97 million versus loss 1.577 million Loss per share - 1.97 cents versus loss per share 1.58. Interim div - nil; unchanged SPP LIMITED: Announces Incorporation of Unit -------------------------------------------- The Board of Directors of SPP Limited has announced the incorporation of a wholly owned unit Company known as S3 Engineering (S) Pte. Limited (S3). The authorized and paid-up share capital of S3 are S$2,000,000 and S$2 respectively. It is contemplated that S3 will be a joint venture vehicle pursuant to the announcement made on 2 August 2002 that SPP had signed a Letter of Intent to establish joint ventures to market machinery and equipment for tire, tire related and rubber industries and to set up tire mould manufacturing facilities in China. SPP will announce at a later date when the joint venture agreements are finalized. The incorporation of S3 is not expected to have any significant impact on SPP's net tangible assets or earnings per share for the current year ending 31 December 2002. None of the Directors or substantial shareholders of SPP have any interest in the incorporation of S3. SPP Limited is a subsidiary of Tuan Sing Holdings Limited. The Company is a diversified marketing, engineering and industrial services group with subsidiaries involved in trading and marketing (SPP Trading Pte Ltd), distribution (Globaltraco International Pte Ltd), engineering and construction (BPL Group), environmental and geotechnical (Soil & Foundation Pte Ltd) activities throughout the Asia Pacific region. According to Wright Investor's Service, at the end of 2000, SPP Limited had negative working capital, as current liabilities were S$60.34 million while total current assets were only S$47.74 million. =============== T H A I L A N D =============== ADVANCE PAINT: Completes Reorganization Plan -------------------------------------------- Advance Paint and Chemical (Thailand) Public Company Limited, in a disclosure to the Stock Exchange of Thailand, said that it has successfully completed its Business Reorganization Plan. Consequently, it is organizing a presentation of the company information and business plan to the analysts to be held on 12 September 2002 at 10.00 - 12.00 A.M. at Royal Meridien Hotel, Concorde 4 room. TCR-AP reported Monday that Advance Paint & Chemical has proceeded with and implemented certain steps in accordance with its rehabilitation plan that includes the reduction and increase of the capital and the allotment of new shares. The Company has also appointed BangpaIn Planner Co., Ltd. as the Plan Administrator, as approved by the Central Bankruptcy Court on 5 July 2002. JASMINE INTERNATIONAL: Facing Debt Repayment Plan Blocking ---------------------------------------------------------- Citigroup Inc. has asked a Thai court to block a proposal from Jasmine International Pcl to change how the Thai telecom company repays about 12 billion baht ($284 million) in defaulted debt. Thailand's biggest undersea fiber-optic network operator does not need a bailout because it can repay debt as its assets exceed liabilities, said Chokechai Nilijiansakul, a lawyer at Linklaters (Thailand) Ltd. who is representing the Thai arm of Citigroup's Citibank unit at the Central Bankruptcy Court. Chokechai told the court that Jasmine had assets of about 17 billion baht and liabilities of 16 billion baht on December 31. Jasmine is seeking protection from Citibank, Bangkok Bank Pcl and other creditors as it prepares to revamp debt payment. Jasmine said it needs a bailout because it is not generating enough cash to repay foreign-currency debt. The company, controlled by Commerce Minister Adisai Bodharamik's family, stopped paying debt at the end of 2001. It turned to a second-quarter loss of 1.4 billion baht after recording a 169 million baht profit a year earlier. 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 ***