/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/020924.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 Tuesday, September 24, 2002, Vol. 5, No. 189 Headlines A U S T R A L I A BURNS PHILP: Kaneb Acquires Terminals for US$44M COLES MYER: Boardroom Battle Intensifies COLES MYER: David Jones Chief Pans Merger Talk COLES MYER: Maple-Brown Holding Boosts Share Price Slightly TELEVISION AND MEDIA: Sells US, Singapore Businesses C H I N A & H O N G K O N G ASIA GLOBAL: China Netcom Buys Global Crossing Unit ASIA GLOBAL: China Netcom Mum on Acquisition Report CHINA UNITED: Back in the Black With HK$34.510M Profit CHINA VENTURETECH: Debt Repayment Rate Seen as Low as 20% ESUN HOLDINGS: Narrows First-Half Net Loss to HK$33.284M FAR EAST TECHNOLOGY: Widens First-half Net Loss of HK$91.947M OMNITECH GROUP: First-half Net Loss Widened to HK$19.344M RENREN HOLDINGS: Reduces First-half Loss to HK$53.704M SHANGHAI BAOSTEEL: S&P Ups Ratings to BBB- SHANGHAI CENTURY: Narrows First-half Net Loss to HK$8.538M SOFTBANK INVESTMENT: Net Loss Narrows on Lower Provisions I N D O N E S I A ASTRA INT'L: Asks Foreign Brokerages to Underwrite Rights Issue BANK DANAMON: Rp500B Bond Issue to Take Place Next Year BHAKTI INVESTAMA: Shareholders Okay 4-for-10 Rights Issue J A P A N KDDI CORPORATION: Suspends Overseas Telephone Services KORONA KK: Women's Apparel Firm Enters Bankruptcy NEC CORP: Selling Shares in Meisei Electric, Restructuring Drive NIPPON MEAT: Sees JPY1B Net Loss in 2002 ROKUGO KENSETSU: Applies for Civil Rehabilitation Proceedings K O R E A DAEWOO SECURITIES: Online Stock Fraud Draws Penalty HYNIX SEMICON: Resolves Future After Micron Offer Rejection HYNIX SEMICON: Moody's Cuts Unit's Rating to Ca KOREA LIFE: Hanwha Consortium Receives Approval on Takeover M A L A Y S I A KEMAYAN CORPORATION: Sees Losses From Winding-Up Petition PILECON ENGINEERING: Faces RM34,500 Fine From KLSE TIMBERMASTER INDUSTRIES: Implements Terms of Workout Proposal TIME DOTCOM: Maxis' Acquisition Will Not Change DiGi.com TIME DOTCOM: Maxis May Buy Stake in Broadband, Fixed Line Ops P H I L I P P I N E S ABS-CBN: PSE Approves Listing, Monitoring of PDR's FIRST E-BANK: Banco de Oro Clarifies Acquisition Report NATIONAL BANK: Exhibit Celebrates 20th Year of ATM Banking NATIONAL BANK: Posts First-half Net Loss of Php1.4B PHILIPPINE LONG: Enters Partnership With SM Group RFM CORPORATION: Changes Beneficial Ownership of Securities S I N G A P O R E ASIA PULP: IBRA Urges Creditors to Join in Debt Restructuring ASIA PULP: Units Sued by Secured Note Holders for $318M CHARTERED SEMICON: CEO Hopes to Regain Profitability COSMIC INSURANCE: S&P Revises Rating to Single-'Bpi' EI-NETS LIMITED: Narrows Net Loss to S$4.092M WING TAI: Widens Net Loss to S$69.2M T H A I L A N D KARAT SANITARYWARE: Announces More Board Resignations KARAT SANITARYWARE: Inks Loan Agreement With US' Kohler KRUNG THAI: Bad Loans Fall to $1.6B in August SUBMICRON TECHNOLOGIES: Wafer Plant Opts to Restructure Debt THAI MILITARY: NPL Ratio Up to 10.76% in August THAKRAL CORPORATION: Posts Changes in Avemue Asia's Interests - - - - - - - - ================= A U S T R A L I A ================= BURNS PHILP: Kaneb Acquires Terminals for US$44M ------------------------------------------------ Kaneb Pipe Line Partners, L.P. announced that its ST Services partnership had completed an acquisition of eight bulk liquid storage terminals in Australia and New Zealand from Burns Philp & Co Ltd. In a separate transaction, Kaneb Pipe Line Operating Partnership, L.P. signed a definitive agreement to acquire an approximately 2,000 mile anhydrous ammonia pipeline system from Koch Pipeline Company, L.P. The Kaneb Companies are Kaneb Services LLC (NYSE:KSL) and Kaneb Pipe Line Partners, L.P. (NYSE:KPP) (the Partnership). Kaneb Services LLC's wholly owned subsidiary, Kaneb Pipe Line Company LLC, is the Partnership's General Partner. Kaneb will announce this week the time for a conference call to discuss these acquisitions. "The acquisitions of the terminals in Australia and New Zealand and the pipeline assets in the Midwestern United States both demonstrate the Partnership's growth strategy and will increase the value of the Partnership and the value of Kaneb Services LLC. We expect that each acquisition will be accretive to cash flow." said John R. Barnes, Chairman and Chief Executive Officer of Kaneb Services LLC. The acquisition price of the terminals of Burns Philp in Australia and New Zealand, is about Australian $80 million or approximately US$44 million, subject to adjustment based on a closing date balance sheet, for a total anticipated purchase price of approximately Australian $83 million. These port-side bulk liquid storage terminals provide storage and handling services to the chemicals, plastics and food ingredient industries in the two countries. They are the largest independent liquids terminaling providers in each of their countries. The approximately 2,000 mile anhydrous ammonia pipeline system runs from the Louisiana Gulf Coast to the upper Midwest states. It is the largest fertilizer pipeline in the country. The system has connections with three third party owned deep-water import terminals, eleven third party production and fertilizer upgrade facilities and twenty-three third party delivery terminals and has an interconnect in the Midwest with another fertilizer pipeline. The pipeline system has a current delivery capacity of approximately 2.2 million tons of product annually and includes a 1,500 ton underground storage and terminal facility in Missouri. Edward D. Doherty, Chairman and CEO of Kaneb Pipe Line Company LLC, the Partnership's General Partner, said, "Both of these acquisitions are the largest in their countries in their respective industries. Like our 1999 United Kingdom acquisition, the Australian and New Zealand terminals give us the critical mass to support a foreign operation. These first-class facilities are both supported by teams of experienced people. We look forward to the continued growth that these acquisitions will bring to our operations." KANEB is a single business represented by two separate publicly traded entities on the New York Stock Exchange. KANEB's business is focused on mid-stream energy assets - refined petroleum product pipelines, and petroleum and specialty liquids storage and terminaling facilities. KANEB is a major transporter of refined petroleum products in the Midwest and is the third largest independent liquids terminaling company in the world. Worldwide operations include 70 facilities in 26 states, the District of Columbia, Canada, the Netherlands Antilles and the United Kingdom. Its publicly traded entities are Kaneb Services LLC (NYSE:KSL) and Kaneb Pipe Line Partners, L.P. (NYSE:KPP) (the Partnership). Kaneb Services LLC is a unique limited liability company, the only publicly traded, cash distributing entity taxed as a partnership that owns the general partner interest of another publicly traded master limited partnership. KSL's assets are the KPP general partner interest and 5.1 million KPP partnership units. Through a wholly owned subsidiary, Kaneb Pipe Line Company LLC, KSL manages and operates the KPP pipeline and terminaling assets. Another KSL subsidiary provides wholesale fuel marketing services. Kaneb Pipe Line Partners, L.P., a master limited partnership, was formed in 1989 to own a 2,075 mile common carrier pipeline system from Kansas to North Dakota that has been managed by Kaneb Pipe Line Company LLC since 1953. Pipeline acquisitions in 1995 and 1998 added 725 miles of pipeline in Colorado, Iowa, South Dakota and Wyoming. The Partnership entered the liquids terminaling business with a large acquisition in 1993, and has more than tripled the size of this operation through subsequent acquisitions. In 2001, the Partnership completed a $165 million acquisition of seven West Coast, U.S. terminals. In 2002, the Partnership completed a $300 million acquisition of two world- class terminaling facilities located in Point Tupper, Nova Scotia, Canada and on the island of St. Eustatius in the Netherlands Antilles. For inquiries, contact Kaneb's Howard C. Wadsworth at telephone 972/699-4041, or via e-mail at investor@kaneb.com. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 187, September 20, 2002) COLES MYER: Boardroom Battle Intensifies ---------------------------------------- The boardroom battle between retiring Coles Myer chairman Stan Wallis and Solomon Lew shows few signs of settling, the Australian Financial Review reported. Both camps, the report said, is lobbying to win support from likely new chairman Rick Allert. Coles Myer, Australia's largest retailer with more than 2,000 stores throughout Australia and New Zealand, has hit hard times over the past couple of years, largely due to losses in its department stores. It was forced to downgrade profits earlier this year, sending its share price spiraling. COLES MYER: David Jones Chief Pans Merger Talk ---------------------------------------------- David Jones CEO Peter Wilkinson criticized market talk of possible merger with Myer Grace, part of Coles Myer. "I think that there are a whole series of reasons why that is very complicated, it is a lovely intellectual exercise, but it is a complicated fact," Wilkinson told Channel Nine's Business Sunday program. COLES MYER: Maple-Brown Holding Boosts Share Price Slightly ----------------------------------------------------------- Coles Myer Ltd was up A$0.13 or 2.26 percent at 5.87 in Friday afternoon trade, by news that Maple-Brown Abbott Ltd became a substantial shareholder of the company on September 17. Maple-Brown now has a relevant interest in the issued share capital of 59,252,108 fully paid ordinary shares (5.00 percent) Dealers said the stock has begun to attract some bargain-hunting interest, after suffering board infighting during the past two weeks. TELEVISION AND MEDIA: Sells US, Singapore Businesses ---------------------------------------------------- Embattled Television and Media Services Ltd (TMS) has sold off its US cinema advertising business and loss-making Singapore operations as it struggles under a massive debt. TMS said its cinema advertising arm Val Morgan, which recently reported a full year net loss of A$76 million (US$41.65 million), including A$67.5 million (US$36.99 million) in writedowns, will be sold to New York-based Screenvision for an initial $A6.6 million, plus a share of revenue over the next two years. Val Morgan will also close its loss-making Singapore operations and withdraw from the country after it lost its screen advertising contract with Golden Village in Singapore. Val Morgan is evaluating its remaining South American, the United Arab Emirates and Hong Kong operations. Val Morgan is currently attempting to focus and renegotiate its contracts in the core Australian and New Zealand businesses. TMS said the US sale would help the company "substantially" cut net debt, which analysts estimate at about A$60 million (US$32.88 million). ================================ C H I N A & H O N G K O N G ================================ ASIA GLOBAL: China Netcom Buys Global Crossing Unit --------------------------------------------------- Fixed-line telecom operator China Netcom Communication Group Corp has completed the acquisition of troubled wholesale carrier Asia Global Crossing with the help of an unnamed U.S. investment bank, the China Daily reported Monday, citing sources close to the deal. The report did disclose details of the price China Netcom paid. China Daily said the acquisition was made by China Netcom Communication's subsidiary China Netcom Corp Ltd. Asia Global Crossing, which operates fiber-optic cable networks linking Asia and North America, has been seeking a buyer since its 58.8 percent U.S. parent Global Crossing went bankrupt in January. In May, China Netcom was reported to be one of several companies interested in buying Asia Global Crossing, which the China Daily said had assets worth about US$1.7 billion. ASIA GLOBAL: China Netcom Mum on Acquisition Report --------------------------------------------------- Neither China Netcom Corp Ltd nor its parent company, China Netcom Communication Group Corp, was available to confirm a China Daily report that the company has completed the acquisition of Asia Global Crossing. A China Netcom press office official said she was unaware of the deal. China Netcom President Edward Tian was in a meeting and unavailable for comment. CHINA UNITED: Back in the Black With HK$34.510M Profit ------------------------------------------------------ China United Holdings Ltd reported a HK$34.510 million net profit for the six months to June, against a loss of HK$56.951 million in the same period of the previous year. Operating profit was recorded at HK$82.261 million from a loss of HK$38.524 million, over sales of HK$123.330 million. No interim dividend was declared, unchanged from the same period last year. TCR-AP reported in May that China United Holdings requested trading in its shares to be suspended on 9 May 2002 pending an announcement in relation to the proposed capital reorganization, proposed rights issue, discloseable and connected transactions. China United Holdings' principal activities are investing in trading securities, provision of brokerage and financial services, property investing, investment holding and provision of Internet and Internet related services. CHINA VENTURETECH: Debt Repayment Rate Seen as Low as 20% --------------------------------------------------------- The repayment rate on bankrupt China Venturetech Investment Corp's confirmed debts of 6.27 billion yuan will be below the 50 percent level originally planned, and could be as low as 20 percent. According to a Business Post report, no repayments have yet been made to Venturetech's domestic state and corporate creditors although the central bank lent the trust and investment company 2.6 billion yuan to cover the repayment of the firm's debts to individuals and foreign companies. In 2000, the People's Bank of China's liquidation group offered these creditors a deal under which they would be repaid 50 percent of their loans to the trust and investment firm over a five-year period from June 2003. Although none of the 277 creditors accepted the deal, the repayment rate had seemed feasible at the time since China Venturetech's total assets were valued at 4.04 billion yuan, while its debts were worth 7.41 billion yuan. However, the value of Venturetech's assets has since deteriorated markedly as the costs of liquidation have grown and assets have depreciated or been removed from the company. On top of this, staff at Venturetech continued to receive full pay ever since the People's Bank of China closed down the Company in 1998. If the liquidation is delayed further, asset values will decline further and the liquidation fees will continue to mount, a central bank official said. ESUN HOLDINGS: Narrows First-Half Net Loss to HK$33.284M -------------------------------------------------------- eSun Holdings Ltd reported for the six months to June a net loss of HK$33.284 million against a loss of HK$58.449 million in the same period the previous year. The Kowloon, Hong Kong-based eSun Holdings also recorded an operating loss of HK$21.694 million, compared with a loss of HK$51.337 million in the year-ago period, on sales of HK$56.573 million. No interim dividend was declared. It was unchanged from the same period last year. eSun Holdings Limited, formerly known as Lai Sun Hotels International Limited, develops and operates investment in media, entertainment, internet and technology-oriented businesses. It provides advertising agency services, manages hotel operations and invests in hotel and restaurant operations and property investment. FAR EAST TECHNOLOGY: Widens First-half Net Loss of HK$91.947M ------------------------------------------------------------- Far East Technology International Ltd widened its net loss for the six months to June to HK$91.947 million from HK$11.183 million. Far East Technology International is an investment company under the Far East Group of Companies. Sales were recorded at HK$47.596 million, with a loss per share of 27.7 cents. No interim dividend was declared. It remained unchanged from the same period last year. OMNITECH GROUP: First-half Net Loss Widened to HK$19.344M --------------------------------------------------------- Electronics components maker Omnitech Group Ltd said that its net loss for the six months to June widened to HK$19.344 million from a loss of HK$64.616 million in the same period of last year. Operating loss was recorded at HK$22.940 million, while sales was reported at HK$66.574 million. No interim dividend was declared, unchanged from the same period last year. RENREN HOLDINGS: Reduces First-half Loss to HK$53.704M ------------------------------------------------------ renren Holdings Ltd, formerly known as renren Media Limited, recorded a loss of HK$53.704 million for the six months to June period, compared with a loss of HK$56.793 million in the same period last year. The Company posted an operating loss of HK$52.951 million on sales of HK$15.326 million. renren did not declare any interim dividend, remained unchanged since last year. SHANGHAI BAOSTEEL: S&P Ups Ratings to BBB- ------------------------------------------ International rating company Standard & Poor's has upgraded the foreign currency credit ratings of Shanghai Baosteel Group to BBB- from BB+. The rating agency also upgraded the outlook of China's biggest steel plant from "positive" to "stable". The agency said the change reflects the substantial drop in the company's debt burden after reorganization, citing marked improvement in the company's capital structure and situation of cash flow. The company annexed two smaller state-owned, money-losing iron and steel companies during the Asian financial crisis, which led Standard & Poor's to downgrade its rating twice for fear of its prospects. The annexed companies have become profitable after they laid off 47,000 employees, about 40 percent of their total workforces. SHANGHAI CENTURY: Narrows First-half Net Loss to HK$8.538M ---------------------------------------------------------- Shanghai Century Holdings Ltd reported a net loss of HK$8.538 million for the six months to June, down from a loss of HK$95.452 million in the previous year. Operating loss also narrowed to HK$8.022 million from HK$86.674 million. No interim dividend was declared, unchanged from the same period last year. SOFTBANK INVESTMENT: Net Loss Narrows on Lower Provisions --------------------------------------------------------- Softbank Investment International Ltd's year to June net loss narrowed to HK$53.025 million from a loss of HK$97.186 million a year earlier due to lower provisioning and higher revenues. Bad and doubtful debts provision in the year under review fell to HK$7.242 million from the year-earlier provision of HK$17.446 million. Softbank Investment said its investment holding division reported an operating loss of HK$36.507 million for the year, compared to a loss of HK$81.49 million a year earlier. The operating loss for its financial services division narrowed to HK$8.81 million from a loss of HK$24.377 million previously, while the garment manufacturing business reported a slight fall in operating profit to HK$3.179 million from HK$3.646 million. ================= I N D O N E S I A ================= ASTRA INT'L: Asks Foreign Brokerages to Underwrite Rights Issue --------------------------------------------------------------- Auto giant PT Astra International has invited ABN Amro, UBS Warburg, ING Securities and JP Morgan Securities to participate in a bid to underwrite its rights issue, Bisnis Indonesia reported, citing unnamed sources. Astra, 32 percent owned by Singapore's Cycle & Carriage Ltd., is considering raising a maximum of US$100 million from a rights issue in the event creditors approve its debt rescheduling. The report said the bid may start this week. TCR-AP said last week that Astra International reported an audited net profit of 2,207 billion rupiah for the six months ended June 30, 2002, against a loss of 993 billion rupiah in the same period of last year. Astra sold 15 percent fewer cars in August compared with the same month in the previous year as domestic sales dropped. The decline was likely attributable to Astra's late launch of its new Toyota commercial vans towards the end of August, when its competitors had already unveiled new models. BANK DANAMON: Rp500B Bond Issue to Take Place Next Year ------------------------------------------------------- IBRA (Indonesian Bank Restructuring Agency) decided to postpone the issuance of 500 billion rupiah bond of PT Bank Danamon, Indonesia's fifth largest bank, until probably next year, Nelwin Adriansyah, assistant vice president of joint lead underwriter Bahana Securities told AFX Asia. The issue, to fund new consumer loans, was originally scheduled to take place in June, but was delayed due to weak interest. "If Bank Danamon issued the bonds today, they would have to sacrifice a higher coupon rate as the banking sector remains out of favor," Aldriansyah said. PT Trimegah Securities is the other underwriter to the issue. Standard & Poor's has rated last Tuesday Bank Danamon's long- term local and foreign currency counterparty credit 'B-' and its short-term credit 'C', with a stable outlook. S&P said the ratings reflect the inherently risky operating environment in Indonesia, where there are substantial economic and financial difficulties, and an asset book dominated by government local currency recapitalization bonds, which gives the bank a low ratio of loans to assets. Danamon is 99.4 percent owned by the government's Indonesia Bank Restructuring Agency (IBRA), although there are plans to privatize the bank. BHAKTI INVESTAMA: Shareholders Okay 4-for-10 Rights Issue --------------------------------------------------------- PT Bhakti Investama said its shareholders have approved the proposed 4-for-10 rights issue at an offer price of 425 rupiah per share at an Extraordinary General Meeting, AFX Asia reports. Bhakti Investama corporate secretary Fatah Subroto said the EGM also approved the issue of 875.209 million Series II warrants maturing in 2007 as an incentive for participation in the capital-raising. The Company has said about 75 percent of the 425.102 billion rupiah expected to be raised will be used to expand its investment portfolio, with the remainder to be used for working capital. The new shares will start trading on October 16. The issue will increase its total paid-up capital to 4.376 billion shares from 2.501 billion previously. PT Bhakti Investama Tbk. (BHIT) is a publicly-listed investment and holding company conducting fundamentally short and long-term investments and offering a wide range of financial services through its wholly owned subsidiaries, particularly in the investment banking activities which include merger and acquisition (M&A), financial advisory, asset management and securities brokerage. The Company's wholly owned subsidiaries include Bhakti Capital Indonesia (BCAP) and Bhakti Asset Management (BHAM). The Company's major sources of income are mostly coming from its investment banking activities, dividend, cash flow generated from the operations of consolidated subsidiaries, trading activities and periodic asset sales. ========= J A P A N ========= KDDI CORPORATION: Suspends Overseas Telephone Services ------------------------------------------------------ KDDI Corporation has decided to suspend overseas telephone services to particular areas following problems associated with overseas information services. In these cases, customers reported being connected to overseas telephones and receiving invoices for international calls they were unaware they were making mainly when they accessed pictures and images over the Internet. To deal with these problems, KDDI has installed special voice guidance systems and free detection software. It has now decided to suspend providing phone services to Diego Garcia (country code:246) and Republic of Seychelles (country code:248), the areas with the most inquiries and claims. KDDI has suspended calls made using the 001 and 0078 international prefixes and that includes calls from mobile phones and PHS. It has also suspended international phone calls from pre-paid mobile phones, 0052 phone calls and au international phone calls (*) International phone calls that announce the call charge at the end of the call KDDI has installed a voice guidance service and an operator to provide information to users making calls using the international operator on 0051 as well as credit card calls on 0055 (including calls made using the super world card). International phone call charges will apply to international operator phone calls (station calls) while services are suspended. Services will be suspended from December 16, 2002. For more information, visit the company's website at http://www.kddi.com. KORONA KK: Women's Apparel Firm Enters Bankruptcy ------------------------------------------------- The Japan court has declared Korona KK bankrupt, according to Tokyo Shoko Research Ltd. The women's blouse and shirt firm, which has 160 employees, has total liabilities of 8.5 billion yen. The Company is located at Ichinomiya-si, Aichi, Japan. NEC CORP: Selling Shares in Meisei Electric, Restructuring Drive ---------------------------------------------------------------- NEC Corporation (NEC) will sell its entire 15.2 percent stake in Meisei Electric, as part of a restructuring drive aimed at cutting costs, Nihon Keizai Shimbun and Reuters reported Saturday. The shares will be sold to fund manager Japan Equity Capital Co., a joint venture between Daiwa Securities SB Capital Markets Co and Sumitomo Corporation. NEC is expecting to post a net profit of one billion yen (US$8.14 million) due to its restructuring. Meisei Electric, which manufactures telecom devices and weather observation equipment, incurred a net loss of two billion yen on sales of 18.4 billion yen in the year ended March 2002, the Nikkei said. A spokesman for NEC refused to comment. NIPPON MEAT: Sees JPY1B Net Loss in 2002 ---------------------------------------- Scandal-hit Nippon Meat Packers Inc. is projecting a net loss of 1 billion yen in the full year, Japan Times reported Saturday. The Company has sliced its interim and full-year group earnings forecasts for the 2002 business year in response to falling sales and profits in the wake of its involvement in a beef- mislabeling scam. The Company, widely known as Nippon Ham, said sales tanked after retailers stripped its products from shelves after news of the scandal broke, and the firm was forced to suspend its beef- related business operations. On September 12, the Japan government filed criminal complaints against the former chiefs of three sales offices of a Nippon Ham subsidiary on suspicion of defrauding the government of nearly 10 million yen in subsidies by having employees knowingly mislabel imported beef as domestic. ROKUGO KENSETSU: Applies for Civil Rehabilitation Proceedings ------------------------------------------------------------- Rokugo Kensetsu KK has applied for civil rehabilitation proceedings last week under the Civil Rehabilitation Law, according to Tokyo Shoko Research. The Company has total liabilities of 11 billion yen. The highway and street construction firm, which has 123 workers, is located at Nagoya-si, Aichi, Japan. ========= K O R E A ========= DAEWOO SECURITIES: Online Stock Fraud Draws Penalty --------------------------------------------------- Daewoo Securities Co, Mirae Asset and Tong Yang have been penalized over online stock fraud involving Delta Information and Communications shares, AFX Asia reports, citing the Financial Supervisory Service (FSS). Daewoo will be banned from opening new online trading accounts for a month from October 1. Mirae Asset and Tong Yang will see the whole business activity of their two key branches in Seoul suspended for the same period for illegal transactions. The three have been ordered to sack or discipline 29 employees including 10 in Daewoo. The FSS called for prosecutors to investigate 18 others including online analysts, private moneylenders and major shareholders of Delta Information. The FSS also pledged tougher steps against fraudulent stock trading. "We are pushing ahead with comprehensive measures against financial crimes in stock trading," it said in a statement. The Delta Information scandal came to light after a Daewoo trader was arrested for stealing the password to an account of Hyundai Investment Trust Management Co to sell 5.0 million Delta shares for 25.8 billion won. Other brokers and Delta's executives were accused of manipulating share prices to reap illegal gains. HYNIX SEMICON: Resolves Future After Micron Offer Rejection ----------------------------------------------------------- After the former board of Hynix Semiconductor rejected a take over offer from U.S. firm Micron Technologies Inc, Hynix hired Deutsche Bank to come up with a plan for the Company, Bloomberg reported, citing Finance Minister Jeon Yun Churl. The future of debt-ridden Hynix will be decided soon. "I hope we can resolve the Hynix troubles as soon as possible, when Deutsche Bank finalizes the draft for restructuring," Jeon told members of the American and European Union chambers of commerce in Seoul. The Company's main choices are to break up and sell off the Company or provide more money to keep it afloat independently. Jeon said he was skeptical about Hynix's ability to survive on its own because memory-chip prices are dropping. In June, Hynix was taken over by its creditors. (M&A REPORTER- ASIA PACIFIC, Vol. No.1, Issue No. 188, September 23, 2002) HYNIX SEMICON: Moody's Cuts Unit's Rating to Ca ----------------------------------------------- Moody's Investors Service on Friday has downgraded to Ca from Caa1 the rating for the senior secured notes issued by Hynix Semiconductor Manufacturing America, Inc. (HSMA). The outlook is stable. Moody's said the rating reflects the credit strength of its majority owner, Hynix Semiconductor Inc. (HSI). The rating action concludes the rating review for possible downgrade announced on August 28, 2001. HSI's profitability has been depressed by the fall that has occurred in DRAM (dynamic random access memory) prices since 2001. Although the Company recorded an operating profit in the first quarter of this year, it fell into deficit in the second year as the DRAM market slipped back. Moody's does not expect Hynix's profitability to rebound significantly in the near future, as the world PC market is unlikely to grow as rapidly as it did before. The PC market consumes approximately 70 percent of the world DRAM production. Furthermore, the financial difficulties facing Hynix will also severely hinder its future competitiveness and viability as the availability of funds for capital expenditure becomes constrained. Hynix Semiconductor Manufacturing America, Inc., headquartered in Eugene, Oregon, is a special purpose vehicle dedicated to the operation of a semiconductor fabrication line in Oregon. HSI holds majority stake in HSMA indirectly. Hynix Semiconductor Inc., headquartered in Seoul, the Republic of Korea, is one of the world's leading memory semiconductor manufacturers. KOREA LIFE: Hanwha Consortium Receives Approval on Takeover ----------------------------------------------------------- The Hanwha Group-led consortium has received final approval to acquire 51 percent stake in Korea Life Insurance Co. for 823.6 billion won, AFX Asia reports, citing Public Fund Oversight Committee Chairman Kang Keum-shik. One of the conditions for the acquisition requires Hanwha Group to cut its group-based debt-to-equity ratio to 200 percent or below by the end of 2005 from the current 232 percent, the report said. Korea Life also will be banned from extending any financial fund to units of Hanwha Group over the next three years after the acquisition. =============== M A L A Y S I A =============== KEMAYAN CORPORATION: Sees Losses From Winding-Up Petition --------------------------------------------------------- The Board of Directors of Kemayan Corporation Berhad said Monday that as the claim has been taken up as liability in the accounts of the Company, there will be no further expected losses except for legal fees to be incurred in challenging the winding-up petition. As the Company is seeking legal opinion, it is unable to assess the financial and operational impact on the Group. Kemayan Corporation originated as a plantation concern developing oil palm plantations in Pahang and cocoa plantations in Sabah. It undertook corporate exercises from 1993 to 1995 focusing on construction and property related activities via the acquisition of companies and projects. Besides these, the Group is also involved in other activities like timber logging and saw-milling, food manufacturing, retailing and trading, education, aviation, hotel and tourism. The 1997/1998 economic crises faced by the country and the region severely affected the Group's cashflow and operation of projects. The Company and certain of its subsidiary companies obtained a Restraining and Stay Order (RO) on 12 August 1998 from the High Court of Malaya under Section 176(10) of the Companies Act, 1965 for the purpose of implementing a proposed corporate restructuring scheme. The RO has been extended to 3 June 2002. The Company entered into a second MOU on 19 February 2002 with a White Knight for injection of assets and to propose a corporate restructuring scheme. PILECON ENGINEERING: Faces RM34,500 Fine From KLSE -------------------------------------------------- The Kuala Lumpur Stock Exchange (KLSE) has publicly reprimanded and imposed a fine of RM34,500 on Pilecon Engineering Bhd for breaching the Listing Requirements (LR). The requirement says that a listed issuer's annual audited accounts together with the auditors' and directors reports shall be given to the Exchange for public release within a period not exceeding four months from the close of the financial year of the listed issuer. KLSE said that as the financial year-end of Pilecon was December 31, 2001, its annual audited accounts were due on April 30, 2002, but were only furnished to the KLSE on June 4, 2002. It said that the public reprimand and fine were imposed after having considered all relevant factors, including the fact that Pilecon had previously breached the KLSE's LR and after consultation with the Securities Commission. In July, TCR-AP reported that Pilecon Engineering's winding-up petition had been presented at the Kuala Lumpur High Court on 18 June 2002 against Pilecon Geotechnics Sdn Bhd (PGSB), a wholly owned subsidiary of the Company and served onto PGSB on 17 July 2002, for a claim of RM113,428.50. The winding-up petition hearing will be on 19 February 2003. TIMBERMASTER INDUSTRIES: Implements Terms of Workout Proposal ------------------------------------------------------------- Aseambankers Malaysia Berhad, on behalf of Timbermaster Industries Berhad, wishes to announce that the Company had on 18 September 2002 entered into an agreement with Leong Wei Kong (LWK), Abd Aziz bin Jantan (together with LWK, the Promoters), Leweko Resources Berhad (LRB) and the Special Administrators (SA) for the purpose of, inter alia, giving effect to and implementing the terms of the Workout Proposal which are as follows: - Proposed capital reconstruction involving a capital reduction and consolidation of TMIB shares (Proposed Capital Reconstruction); - Proposed acquisition of the entire reduced and consolidated share capital of TMIB by LRB (Proposed Exchange Of Shares); - Proposed acquisitions of the shares of Maju Weko Timber Industries Sdn. Bhd. (MWTI), Maju Leweko Timber Sdn Bhd. (MLT), Sykt Amiziz (M) Sdn. Bhd. (SAM), Kota Pinang Sdn. Bhd. (KPSB), Sesenduk Air Sdn. Bhd. (SASB) and Petralman Sdn. Bhd. (PSB) (hereinafter collectively referred to as the Vendor Companies) by LRB (Proposed Acquisitions Of Vendor Companies By LRB); - Proposed offer for sale and/or placement of LRB shares by the Promoters (Proposed Offer for Sale and/or Placement of Shares); - Proposed transfer of TMIB's listing status to LRB; - Proposed settlement of debt in TMIB (Proposed Debt Restructuring); - Proposed waiver from the obligation to make a mandatory offer by the Vendors under the Malaysian Code on Takeovers and Mergers 1998 (Proposed MO Waiver); and - Proposed liquidation of TMIB. The above proposals will collectively be referred to as the Proposed Restructuring Scheme. In relation to the Proposed Acquisitions of Vendor Companies by LRB, the Vendors, LRB and TMIB had on 18 September 2002 entered into six separate sale and purchase agreements for the acquisitions by LRB and the disposal by the Vendors of the shares of the Vendor Companies. The Proposed Restructuring Scheme is conditional upon the approvals of Danaharta (for the Workout Proposal), the Securities Commission, the Foreign Investment Committee, the Ministry of International Trade and Industry, Kuala Lumpur Stock Exchange and any other relevant authorities. The Proposed Restructuring Scheme does not require approval of the shareholders of TMIB. The proforma financial effects of the Proposed Restructuring Scheme are set out in the attachment of this announcement. None of the directors and substantial shareholders of TMIB and any other persons connected to them has any substantial interest, direct or indirect in the Proposed Restructuring Scheme. Having considered all aspects of the Proposed Restructuring Scheme, the SA is of the opinion that the Proposed Restructuring Scheme is in the best interest of the Company and the TMIB Group. The application to the SC for the Proposed Restructuring Scheme is expected within one month from the date of this announcement. TIME DOTCOM: Maxis' Acquisition Will Not Change DiGi.com -------------------------------------------------------- DiGi.com Bhd Chief Operating Officer Tore Johnsen said Maxis Communications Bhd's acquisition of TimeCel, the cellular operations of Time dotCom Bhd, is not a surprise and will not dramatically change DiGi.com's strategy, the Star reported. He also said there is a window of opportunity for the company to gain market share, while its rivals work to complete their merger, but the company is not underestimating its rivals. "We look at them as strong competitors ... but DiGi is a lean organization, it is efficient, innovative in products and services, and has a quality network. No doubt it would be a tough market to operate in, but we believe we are able to grow and have a (decent) share and position," he added. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 188, September 23, 2002) TIME DOTCOM: Maxis May Buy Stake in Broadband, Fixed Line Ops ------------------------------------------------------------- Maxis Communications Bhd may take an equity stake in Time dotCom Bhd's broadband and fixed line services business if the joint venture to market fixed line services lives up to its promise, the Edge reported, quoting unidentified sources. It said the initial focus of the joint venture will be the corporate sector, which is Time dotCom's strong point, and later move on to the retail sector. It said Maxis will spend 2 billion ringgit on the joint venture. TCR-AP said last week that Time dotCom is planning to sell its cellular operations held under unit TIMECel Sdn Bhd to Maxis Communications at an indicative price of RMB1.3 to 1.6 billion in cash subject to a due diligence. Time dotCom will use the entire proceeds from the sale for capital repayments to shareholders and towards defraying expenses relating to the exercise, subject to approval from shareholders and the relevant authorities. ===================== P H I L I P P I N E S ===================== ABS-CBN: PSE Approves Listing, Monitoring of PDR's -------------------------------------------------- The Philippine Stock Exchange approved on September 8, 1999, subject to either actual issuance or exercises of PDR's, the listing application of ABS-CBN Holdings Corporation to list a maximum of 272,000,000 Philippine Deposit Receipts (PDRs) In this connection, please be advised that the Company's PDR agent has received notices from ABS-CBN shareholders for the exchange of 70,000 ABS-CBN common shares to 70,000 PDRs. In view thereof, the listing of the 70,000 PDRs as represented by PDR Certificate No. 1146 is set on Friday, September 20, 2002. This brings the number of PDRs listed arising from the exchange of 70,000 ABS-CBN shares to a total of 269,410,900 PDRs. The designated PDR agent is hereby authorized to record and register in its books the above-mentioned number of PDRs. Earlier this month, ABS-CBN executed a P3.0 Billion Exchangeable Notes Facility Agreement with majority of its short-term creditors. For the past several months, ABS-CBN has undertaken a Master Financial Plan, of which the Facility is a major component, to improve its loan maturity profile. Other creditors of ABS-CBN have also signified their intention to participate in the Facility. ABS-CBN expects that the participating creditors in the Facility will represent at least 88 percent of its total short-term loans. A Mortgage Trust Indenture secures the Facility over substantially all of the assets of ABS-CBN. Until recently, all existing short-term creditors of ABS-CBN have graciously allowed the extension of the maturity of their credits, as long as interest payments are current and all short- term creditors are maintained on a pari passu basis on loan payments. In this respect, ABS-CBN has been fully compliant. Two of its short-term creditor banks have indicated that they are not participating in the Facility and have given notice for the payment by ABS-CBN of the amounts due under the relevant loan agreements with said banks. To date, ABS-CBN's outstanding principal obligations with these two banks amount to P100 Million and US $3.6 Million, respectively. The amounts due to these banks represent only about 1 percent of the total consolidated assets of ABS-CBN and 7 percent of its total short-term loans. Upon terming out of the majority of its short-term loans, ABS- CBN will improve its current ratio to about 1.90x, while maintaining its net-interest bearing debt-to-equity ratio at 0.45x. For a copy of the disclosure, go to http://bankrupt.com/misc/TCRAP_ABSCBN0923.pdf For more information, visit http://www.abscbn-ir.com/dis2002- g.shtml. FIRST E-BANK: Banco de Oro Clarifies Acquisition Report ------------------------------------------------------- Banco de Oro Universal Bank clarifies the news article entitled "Banco de Oro to take over First e-Bank?" published in the September 23, 2002 issue of the BusinessWorld. The article reported "Wealthy businessman Henry Sy's Banco de Oro Universal Bank is reportedly taking over First e-Bank, the banking arm of the Metro Pacific group. Over the weekend, BusinessWorld learned that Banco de Oro has beaten Asia United Bank and Bank of Commerce in the bidding for the right to rehabilitate First e-Bank. The deal was closed last Friday," the source said. Banco de Oro Universal Bank (BDO), in its letter to the Philippine Stock Exchange dated September 23, 2002, clarified that: "BDO submitted to the Bangko Sentral ng Pilipinas the Company's proposed assumption of the liabilities and purchase of certain assets of first e-Bank. As of this writing, we have not received any notice of approval from the Monetary Board. BDO will accordingly advise the Philippine Stock Exchange and the investing public of any transaction in which the Bank is involved that would require public disclosure. For a copy of the disclosure, go to http://bankrupt.com/misc/TCRAP_Firstebank0923.pdf. NATIONAL BANK: Exhibit Celebrates 20th Year of ATM Banking ---------------------------------------------------------- Philippine National Bank Superteller (PNB) was born on December 18, 1981. After a series of rigorous tests, it debuted on February 25, 1982. Thus, ATM banking was introduced in the Philippines. To celebrate this pioneering venture on its 20th year of ATM banking, PNB will hold an ATM exhibit entitled, A Show of ATM Force, at the PNB Financial Center along President Diosdado Macapagal Blvd., Pasay City from September 23to 25, 2002. Joining this event are Channel Solutions, NCR, IBM and Siemens, four of the world's foremost makers of automated tellering machines (ATMs), showing their new breed of ATM products and applications. Meanwhile, PNB ranked first among 27 member-banks in two categories used by Megalink in its monthly reports from July 2001 to June 2002. These categories are controllable approval rate and host availability rate. Megalink monitors its member-banks on a regular basis using these two categories to ensure strict adherence to the highest standards in ATM servicing. PNB - www.pnb.com.ph - ranked first with a high score of 99.08 percent in terms of controllable approval rate. This refers to the percentage rate that PNB successfully processes transactions of other banks' ATM cardholders. PNB also ranked first with a high mark of 99.80 percent in terms of host availability of member-bank. This refers to the percentage rate that PNB successfully allows its cardholders to transact at other banks' ATMs. PNB's high performance reflects its commitment to excellent customer service, particularly to its ATM cardholders. NATIONAL BANK: Posts First-half Net Loss of Php1.4B --------------------------------------------------- Philippine National Bank (PNB) incurred a net loss of 1.4 billion pesos in the eight months to August, AFX Asia reported Monday, citing bank President Lorenzo Tan. Tan said the bank's NPL ratio remained at about 50 percent at the end of August. He said the bank has started lending but still remains "very selective." "The central bank has yet to approve our rehabilitation program but we are now preparing the infrastructure. We have identified some areas where we can make some money," he said. PNB is targeting an increase in its depositor base, currently at 3 million, particularly in the low-cost deposits market. Joint ventures with other banks for remittance businesses are also being planned, Tan said. PHILIPPINE LONG: Enters Partnership With SM Group ------------------------------------------------- In a disclosure, PLDT Fonkard product manager Ane Guzman said Philippine Long Distance Telephone Co (PDLT) has entered into a partnership with the SM Group of Companies to offer the country's first ever hybrid pay phone and theme park card. She said the new SM Storyland Fonkard Plus will allow users to place calls using more than 12,000 PLDT pay phones nationwide and avail of rides at Storyland theme parks at some of the SM shopping malls. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 188, September 23, 2002) RFM CORPORATION: Changes Beneficial Ownership of Securities ----------------------------------------------------------- Food and beverage firm RFM Corporation posted changes in its beneficial ownership of securities. For a copy of the SEC For 23-B, visit http://bankrupt.com/misc/TCRAP_RFM0923.pdf Meanwhile, RFM Corporation revised its 2001 financial statement to show a net loss instead of a net profit as advised by its auditors, TCR-AP reports. In a disclosure to the Philippine Stock Exchange, RFM posted a net loss of 3.05 billion pesos last year against a net loss of 520 million pesos in 2000. DebtTraders reports that RFM Capital's 2.750% convertible bond duein 2006 (RFM06PHS1) trades between 100 and 110. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=RFM06PHS1 ================= S I N G A P O R E ================= ASIA PULP: IBRA Urges Creditors to Join in Debt Restructuring ------------------------------------------------------------- Indonesian Restructuring Agency (IBRA) Chairman Syafruddin Temenggung has called on all secured and unsecured creditors of Asia Pulp & Paper (APP) to participate in the Company's debt restructuring process, AFX Asia reported. Under a Memorandum of Understanding (MoA) signed in July, IBRA agreed to work with the steering committee to restructure APP's debt by September 30. "Some creditors and consultants are worried about missing the deadline. But I say we will not miss it because starting from next week (this week) I will lead the debt restructuring myself," Temenggung said. The Chairman said he is not concerned about Deutsche Bank AG's plan to appeal a Singapore High Court ruling rejecting its petition to place APP under judicial management. "They are minority creditors who pretend to be major creditors. In fact, most large creditors have supported IBRA in the restructuring process," he said. APP's has total outstanding debt of US$13.9 billion, of which some 1.25 billion is owed to IBRA. It called a standstill on repayments in March 2001. ASIA PULP: Units Sued by Secured Note Holders for $318M ------------------------------------------------------- Three investors sued Asia Pulp and Paper Co. Ltd. (APP) and its four units because the latter are reneging on promises to repay them $318 million, Bloomberg reports. The plaintiffs, hedge fund Gramercy Advisors LLC, investment firm Oaktree Capital Management LLC and General Electric Co.'s General Electric Capital Corp. filed the complaint in state court in New York. The three secured note holders object to Asia Pulp's repayment plan because it doesn't give them priority. Asia Pulp has struggled to reschedule debt since the 1997 Asian financial crisis. APP said, on September 10, it wanted 13 years to repay debt, with principal payments beginning at the end of the fifth year. Creditors had anticipated between eight and 10 years, as recommended by their appointed auditor, KPMG International. While the Company says it will repay its debt, "that doesn't mean all creditors should be treated the same," plaintiffs' lawyer Richard Cooper said. "That's not what we bargained for when we acquired these instruments." "So many global institutions are involved, it's about violation of investor rights," said Mark Mobius, managing director of Templeton Asset Management Ltd. who last year urged Singapore to investigate the Company for fraud over $1 billion in missing funds. "If justice is done with Asia Pulp & Paper, you might see more interest" in investing in Indonesia, he said. APP and several of its Indonesian subsidiaries defaulted on notes from 1994 and 1995 that paid annual interest ranging from 11.75 percent to 12.5 percent, the suit said. As of September 12, when the suit was filed, the total amount due to all holders of the three series of notes was $989 million, including principal and interest, court papers said. The investors say the defendants' pulp and paper mills, insurance proceeds and other assets secured their debt. Defendants are Asia Pulp units APP International Finance Co. BV; PT Lontar Papyrus Pulp & Paper Industry; Indah Kiat International Finance Co. BV; and PT Indah Kiat Pulp & Paper Corporation. The plaintiffs seek $147 million from Asia Pulp, APP Finance, and Lontar, and $171 million from Indah Kiat Finance and Indah Kiat Pulp & Paper. GE Capital's exposure is $35 million, spokesman Peter Stack said. Gramercy Advisors said its exposure is about $75 million. 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. CHARTERED SEMICON: CEO Hopes to Regain Profitability ---------------------------------------------------- Chartered Semiconductor Chief Executive Officer Chia Song Hwee said the Company aims to regain profitability and boost long- term competitiveness, the Business Times reported. "My job is to get us back to profitability, and there is nothing we are doing that isn't also addressing the long-term fundamental need to return money to shareholders," he said. Song Hwee said he is not surprised that investors are questioning the Company considering the losses it posted in the past quarter. COSMIC INSURANCE: S&P Revises Rating to Single-'Bpi' ---------------------------------------------------- Standard & Poor's Ratings Services said Friday it had revised its insurer financial strength rating on Cosmic Insurance Corp. Ltd. to 'R' from single-'Bpi' following an announcement on Friday that the Monetary Authority of Singapore (MAS), the domestic regulator for the insurance industry, has ordered the Singapore-based general insurer to cease writing new business with immediate effect. On July 24, 2002, Standard & Poor's lowered its public information (pi) insurer financial strength rating on Cosmic Insurance to single-'Bpi' from double-'Bpi' because the Company's financial profile had weakened. The MAS said its action was a pre-emptive move to protect the interests of Cosmic Insurance's policyholders in view of the Company's underlying serious operational difficulties, including continued losses arising from higher claims, large uncollected premium balances, and inadequate loss reserves. The regulator further explained that it had given Cosmic Insurance time to tackle these problems but that the Company had failed to overcome them. The MAS added that although Cosmic Insurance had raised additional capital to strengthen its financial position, the Company had been unable to restore its solvency margin to the required level. The MAS pointed out that in view of Cosmic Insurance's failure to re-establish its solvency margin at the required level and the Company's other continuing operational difficulties, it had exercised its statutory powers to direct the Company to stop accepting new business and to run-off its existing business in an orderly manner. An insurer rated 'R' has been placed under regulatory supervision owing to its financial condition. In the course of regulatory supervision, the regulators may have the power to favor one class of obligations over others or pay some obligations and not others. The rating does not apply to insurers subject only to non-financial actions such as market conduct violations. EI-NETS LIMITED: Narrows Net Loss to S$4.092M --------------------------------------------- Ei-Nets Limited narrowed its net loss in the year to June to S$4.092 million from a loss of 27.949 a year ago, in the absence of large exceptional losses seen in the previous period, AFX Asia reports. The Company expects another challenging year ahead due to poor economic conditions and the continued dampened operating environment for e-commerce activities. To finance its working capital requirements, the Company's board is evaluating the need to call upon the first tranche of the S$10 million standby shareholders' loan facility amounting to S$3.5 million and other financing alternatives. No interim dividend was declared, unchanged from the same period last year. WING TAI: Widens Net Loss to S$69.2M ------------------------------------ Wing Tai Holdings posted a net loss of S$69.2 million versus a net loss of S$21.9 million a year ago, GK Goh reports. This was mainly due to exceptional losses amounting to S$95.2 million. The bulk of the exceptional items were from provisions (S$87.9m) were for foreseeable losses on development projects, including the Waterfront project in Hong Kong. The balance was largely losses incurred on cessation of WT- iAdvantage ($3.3 million) and disposal of a factory building in Ang Mo Kio ($4.0 million). GK Goh do not expect a near term recovery for the high-end residential segment to which the Group has a large exposure to. GK Goh maintains a sell rating. The Company provides property development, property investment and management services; manufactures, trades and retails of woven labels, garments, architectural products and accessories; and restaurant operations. Property development accounts for 34 percent of fiscal 2001; investment property, 26 percent; trading, 24 percent and retail, 16 percent. =============== T H A I L A N D =============== KARAT SANITARYWARE: Announces More Board Resignations ----------------------------------------------------- Asanee Chantong, Joint Managing Director of Karat Sanitaryware Public Company, said Monday in a disclosure to the Stock Exchange of Thailand that more directors have stepped down from their post in the Bangkok-based sanitaryware producer. The resignation of Mr. Viphandh Roengpithya, Independent Director; Miss Sukon Kanchanalai, Chairman of the Audit Committee and Independent Director; Mrs. Duangkamol Sakuntanaga, Vice-Chairman, Director and Member of the Audit Committee; and Mrs. Yuwaluck Pipitmethanont, Member of the Audit Committee shall be effective on September 24, 2002. Nine of Karat Sanitaryware resigned on September 20. Karat Sanitaryware Public Company, Limited produces sanitaryware such as bathtub, septic tank, grease trap, water tank and air pump under the tradename of YASUNAGA. KARAT SANITARYWARE: Inks Loan Agreement With US' Kohler ------------------------------------------------------- Karat Sanitaryware Public Company Limited, in a disclosure to the Stock Exchange of Thailand, said Friday it has signed Refinancing Loan Agreement and Land Sale and Purchase Agreement. Details are as follows: 1. Refinancing Loan Agreement Lender: Kohler Co. of the U.S.A. Principal: Tranche A - US$17.50 Million Tranche B - US$650 Million Baht Security: None Borrowing Term: None Repayment: At any time after the second anniversary of the agreement, Lender may demand Borrower to repay the Loans by sending Borrower at least 15 days notice prior to the repayment date. Prepayment Penalty: None Interest Rate: Tranche A - LIBOR + 1 % per annum Tranche B - MLR - 1 % per annum Interest Payment: On a quarterly basis 2. Land Sale and Purchase Agreement The sale of land to RPLM (Thailand) Company Limited totaling 1,152 Rai 3 Ngan 79.73 Square Wah at the amount of 472.7 Million Baht was in accordance with the new debt restructuring plan. KRUNG THAI: Bad Loans Fall to $1.6B in August --------------------------------------------- The non-performing loans (NPLs) of state-run Krung Thai Bank Plc, Thailand's second largest bank, stood at 7.98 percent of total lending at end-August, against 8.32 percent at the end of July. The bank said its NPLs, loans with no revenues for at least three months, amounted to 68.86 billion baht ($1.60 billion) at the end of August, compared with 71.42 billion baht at the end of July. The reported August NPL figures were based on a bad loan reporting practice made by Thai banks that excluded their fully provisioned bad assets that the central bank allowed to be written off. Krung Thai's assets at the end of August totaled 1.105 trillion baht, while total liabilities were at 1.035 trillion baht. Krung Thai Bank plans to offer more shares to the public in November, which will reduce the government's stake in the bank to 49 percent from 92 percent. SUBMICRON TECHNOLOGIES: Wafer Plant Opts to Restructure Debt ------------------------------------------------------------ Submicron Technologies has decided to restructure its debts, paving the way for the relaunch of plans to build the country's first electronic wafer fabrication plant, Bangkok Post reported. The plan has drawn both praise and words of caution. Several electronics companies believe the plant will turn Thailand's semiconductor industry into a production center of value-added products, while others are skeptical whether the project should be restarted now, given the slump in the dot.com industry. An executive of a US-based chipmaker, who asked not to be identified, said there was clearly a lot of mismanagement of the previous attempt to launch the wafer project. The government and related agencies should work closely together to avoid the restarted project turning into a disaster "like it did before," the executive said. Under the debt-restructuring plan implemented by the Thai Asset Management Corporation, 12 billion baht would be written off. About US$1.2 billion will be injected into the company, mainly by a German consortium. Infineon Technologies AG will take a stake of up to 25 percent and will guarantee to buy all output from the factory. Other investors will lift the consortium's take to more than 50 percent in a renamed operation. THAI MILITARY: NPL Ratio Up to 10.76% in August ----------------------------------------------- Thai Military Bank Plc, Thailand's sixth largest bank, said Monday its non-performing loans (NPL) at the end of August totaled 31.41 billion baht ($726.6 million), or 10.76 percent of total loans before allowance for doubtful accounts. The August NPL figures are based on a calculation method that allows fully provisioned bad assets to be written off. TCR-AP reported last week that Admiral Prasert Boonsong has resigned as director, effective October 1, 2002. THAKRAL CORPORATION: Posts Changes in Avemue Asia's Interests ------------------------------------------------------------- Thakral Corporation Ltd posted a notice of changes in substantial shareholder Avemue Asia Capital Management, LLC's interests as follows: Name of substantial shareholder: Avemue Asia Capital Management, LLC Date of notice to company: September 19, 2002 Date of change of interest: March 28, 2002 Name of registered holder: 1. HSBC (Singapore) Nominees Pte Ltd 2. Bear, Stearns Secrurities Corp. Circumstance(s) giving rise to the interest: Others Please specify details: Conversion of debt to equity pursuant to scheme of arrangement sanctioned by High Court of Singapore on 21/11/2001. Shares held in the name of registered holder No. of shares of the change: 124,355,620 Percentage of issued share capital: 8.3 Amount of consideration per share excluding brokerage, GST, stamp duties, clearing fee: S$0.25 No. of shares held before change: 0 Percentage of issued share capital: 0 No. of shares held after change: 124,355,620 Percentage of issued share capital: 8.3 Holdings of Substantial Shareholder including direct and deemed interest No. of shares held before change: Percentage of issued share capital: No. of shares held after change: 132,084,660 (Deemed) Percentage of issued share capital: 8.8 (Deemed) Total shares: 132,084,660 (Deemed) Information relating to shares held in the name of the registered holder (2): No. of shares which are the subject of the transaction: 7,729,040 Percentage of issued share capital: 0.5% Amount of consideration (excluding brokerage and stamp duties) per share paid or received: S$0.25 No. of shares held before the transaction: 0 Percentage of issued share capital: 0% No. of shares held after the transaction: 7,729,040 Percentage of issued share capital: 0.5% Note: 1. HSBC (Singapore) Nominees Pte Ltd is the registered holder of the Unreleased Shares. (Definition of "Unreleased Shares" is according to the Scheme of Arrangement.) 2. Bear, Stearns Securities Corp. is the registered holder of the Released Shares. (Definition of "Released Shares" is according to the Scheme of Arrangement. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 188, September 23, 2002) 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, Salve M. Mordeno, 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 ***