/raid1/www/Hosts/bankrupt/TCRAP_Public/020926.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, September 26, 2002, Vol. 5, No. 191
Headlines
A U S T R A L I A
AMP LIMITED: ASA Calls for Explanation of Management Departure
AMP LIMITED: Mohl Promises Full Disclosure
AMP LIMITED: S&P Maintains Negative Outlook for Life Unit
AMP LIMITED: Seeking New CEO
AMP LIMITED: Shares Recover on Mohl Assurances
AMP LIMITED: UBS Warburg Keeps Hold Rating
ANACONDA NICKEL: Dips Nearly 50% on Glencore Rights Issue
COLES MYER: In No Rush to Split Supermarket Firm
GOODMAN FIELDER: UBS Warburg Reiterates Buy Rating
C H I N A & H O N G K O N G
CHINA CENTRAL: First-half Losses Widen to HK$42.4M
FOUNDER HOLDINGS: Loss Narrows to HK$54.53M
SMARTONE TELECOM: Higher on FY Profit
SMARTONE TELECOM: Returns to Black With HK$115M Profit
WINSAN (CHINA): Proposes Share Reorganization to Cut Losses
WINSAN (CHINA): Reduces First-half Losses to HK$18.3M
I N D O N E S I A
BANK NIAGA: IBRA Sells More Shares Through JSX
BANK NIAGA: Government Accepts Commerce Asset Bid
SALIM GROUP: Repays 70% of IBRA Debt
TJIWI KIMIA: Resumes Trading Today
J A P A N
HITACHI LTD: Partners With UbiNetics to Develop 3G Chip-Sets
MATSUSHITA ELECTRIC: Enters JV Deal With Minebea
MITSUBISHI TOKYO: Dissolving UK Subsidiary
NIPPON MEAT: Asking Creditors to Extend Credit Line by JPY50B
NIPPON MEAT: Meat Firm Will Not Cut Jobs, Fujii Says
N.J. KANRI: Women's Apparel Firm Enters Bankruptcy
NTT DOCOMO: Launches Three New M-Stage Services
SEKISUI HOUSE: Returns to Profit in First Half
K O R E A
DAEWOO MOTOR: Executives Facing Lawsuits For Huge Losses
HYUNDAI GROUP: FSC Seeks New Bidders for Controlling Stakes
HYUNDAI MERCHANT: Restructuring Aims to Focus Management
KOREA LIFE: Hanwha to Sign Final Contract Next Month
* S&P Upgrades Six Korean Banks Credit Ratings
M A L A Y S I A
AMSTEEL CORP.: Seeks Approval of Shareholders' Mandate Renewal
ANGKASA MARKETING: Announces Disposal of Wuhan Stake for US$7.5M
AOKAM PERDANA: Appoints Andrew Gerard Purcell to the Board
AVENUE ASSETS: Completes Mega Palm Sale
CHASE PERDANA: KLSE Approves Request for Extension of Time
EPE POWER: Granted Delay to Make Requisite Announcement
ESPRIT GROUP: KLSE Rejects Two-month Extension Request
KUALA LUMPUR INDUSTRIES: SC Approves Debt Restructuring Plan
LION LAND: Seeks Approval of Shareholders' Mandate Renewal
MALAYSIA GLOBAL: Moody's Ups Rating to Baa1
SPORTMA CORPORATION: Defaults in RM222.05M Payment
SUNWAY HOLDINGS: Enters Into Supplemental Collateral Agreement
TAT SANG: Disposes Assets to Mercuries for RM19.9M
TENAGA NASIONAL: Sets EGM to Oct 10
P H I L I P P I N E S
PHILIPPINE AIRLINES: Airline Cleared of Faulty Pumps
PHILIPPINE AIRLINES: GFIs Will Pursue Judicial Proceedings
PHILIPPINE AIRLINES: Signs Code-Share Deal With Qatar Airways
PHILIPPINE LONG: Declares Cash Dividends on Convertible Stocks
PHILIPPINE LONG: First Pac Unable to Close Deal With Gokongwei
PHILIPPINE TELEGRAPH: Digital Responds to Tie Up Report
UNITRUST DEVELOPMENT: CityState Clarifies BusinessWorld Report
S I N G A P O R E
BIL INTERNATIONAL: Posts FY02 Financial and Dividend Statement
CHARTERED SEMICONDUCTOR: Responds to Queries Re Announcement
CHEMICAL INDUSTRIES: Delists $50M 2.5% of Unsecured Bonds
CSC HOLDINGS: Cancels Rights Issue of Loan Stock Due 2005
NATSTEEL LTD: Clarifies Management Buyout Offer Report
PENTON INTERNATIONAL: UK Subsidiaries Under Receivership
SPP LIMITED: Divests All Shareholding in Unit
T H A I L A N D
KRUNG THAI: Shareholders Approve Capital Restructuring
ROBINSON STORE: Debt Revamp Proceeding Without Delay
- - - - - - - -
=================
A U S T R A L I A
=================
AMP LIMITED: ASA Calls for Explanation of Management Departure
--------------------------------------------------------------
The Australian Shareholders Association (ASA) is calling for an
explanation from AMP Limited, following the departure
announcement by Carolyn Hewson, Marc de Cure, Chairman Stan
Wallis and Chief Executive Officer Paul Batchelor.
ASA chairman Ted Rofe says the public and the company's
shareholders are entitled to a full explanation as to what's
really happening.
"We really don't know the reasons for the departure, and indeed,
this is only one of a whole series of top-level departures from
the AMP," he said.
AMP LIMITED: Mohl Promises Full Disclosure
------------------------------------------
The new acting Chief Executive Officer of AMP Limited, Andrew
Mohl, has moved to reassure the public the full disclosure of
its financial position, following criticisms last week for
glossing over the problems of its UK business.
"We have not been clear, rather than we have intentionally
misled," he said.
Mr Mohl has vowed to ensure future communication is clear, full
and easily understood.
"Certainly one of my key priorities is to rebuild trust in AMP,
with our customers our shareholders, our planners and our
employees."
The new AMP chief says he has the full support of the board to
get the company back on track.
AMP LIMITED: S&P Maintains Negative Outlook for Life Unit
---------------------------------------------------------
Standard and Poor's said the outlook for AMP Ltd's AMP Life unit
remains negative pending further clarity from the company about
its senior management and strategy.
AMP chief executive Paul Batchelor stepped down this week, while
chairman Stan Wallis said he would continue his role for only
six months after a replacement CEO is formally appointed.
S&P said that changes in management are not in themselves
immediate precursors to a rating action, particularly for
strongly rated companies with good management depth.
"Clarity over the impact of these changes is expected some time
after the appointment of new executives, at which time any
changes in the company's strategy and management structure will
be apparent," S&P associate director for financial services
ratings Kate Thomson said.
AMP LIMITED: Seeking New CEO
----------------------------
AMP Limited will be conducting an international search for a new
managing director, following the resignation of CEO Paul
Batchelor, ABC News reports.
Chairman Stan Wallis has indicated he will oversee the
appointment of a permanent replacement, stay a further six
months beyond that and then resign.
Both internal and external candidates will be considered as part
of an international search, the paper said.
AMP LIMITED: Shares Recover on Mohl Assurances
----------------------------------------------
Shares of AMP Ltd. bounced off a record low Wednesday after the
Sydney-based funds manager and insurance company reassured
investors it would not seek an injection of shareholder funds to
help restore the capital adequacy of its U.K. investment arm,
AMP Pearl.
According to a Dow Jones Newswires report, AMP's shares had
rallied 28 cents, or 2.5 percent, to A$11.57 after touching an
all-time low of A$10.73 early in the session.
Acting CEO Andrew Mohl gave reassurance that Pearl's with-
profits fund will be able to meet minimum regulatory capital
requirements to FTSE levels of 3000.
Shares in AMP have been sinking to all time lows this week as
the market reacted to revelations the group had not revealed the
full extent of the financial troubles at its British operations.
AMP LIMITED: UBS Warburg Keeps Hold Rating
------------------------------------------
Brokerage firm UBS Warburg keeps hold rating on AMP Limited
after CEO Paul Batchelor resigned, saying there is no impact on
the key medium-term risk facing Australia's largest insurance
and financial services group.
UBS Warburg says there is no impact on forecasts until a
permanent CEO is appointed.
AMP is a leading international financial services business,
providing wealth management products and services to around 8
million customers worldwide. Principal activities include
retirement savings, funds management, life and general
insurance, financial planning and banking services.
AMP operates in 20 markets around the world with a significant
and efficient domestic presence in its three home markets of
Australia, New Zealand and the UK.
ANACONDA NICKEL: Dips Nearly 50% on Glencore Rights Issue
---------------------------------------------------------
Shares in Anaconda Nickel Ltd were down 49 percent at A$0.16 by
12:15 a.m. (0215 GMT) on Wednesday trade after Glencore
International AG, agreed to underwrite a A$323 million ($174
million) issue at a big discount in a bid to cut US$114 million
in debt.
Swiss-based commodities trading firm Glencore, which owns 34
percent of Anaconda, will fully underwrite the issue of 6.46
billion shares at five cents each, representing 14 new shares
for every ordinary share.
Anaconda Chief Executive Peter Johnston said the rights issue is
an opportunity for the company to reduce its unsustainable debt
burden and to provide sufficient funds to assist with consistent
and adequate performance from the Murrin Murrin project.
He said the rights issue, expected to start towards the end of
December, would require the approval of Australia's Foreign
Investment Review Board, the company's bondholders, owed some
US$190 million, before the issue can be launched.
Anaconda ran into problems after its Murrin Murrin nickel
project failed to meet promised production runs as it struggled
to install tricky heap leaching technology to extract nickel and
cobalt from otherwise worthless clay-like ore.
Anaconda reported a A$920 million year net loss for 2001/02.
COLES MYER: In No Rush to Split Supermarket Firm
------------------------------------------------
Coles Myer Ltd, Australia's largest retailer, is not in a hurry
to split up the ailing Melbourne-based company, and will take as
long as necessary to come up with a winning formula, a source
told Reuters on Wednesday.
"We want to get it right," the source said in a statement.
A view is growing in the financial community that chief
executive officer John Fletcher's key role at Coles Myer is to
demerge the retailer, but the belief was mistaken, the source
added.
GOODMAN FIELDER: UBS Warburg Reiterates Buy Rating
--------------------------------------------------
Investment banker and securities firm UBS Warburg reiterates buy
recommendation on Goodman Fielder following the New South Wales
food company's update.
UBS Warburg says Goodman Fielder represents good opportunity for
capital preservation in short term at least, and appreciation
over medium term on back of operating performance improvements
and capital management initiatives.
TCR-AP reported early this month that UBS Warburg has kept its
buy recommendation on Goodman Fielder after the fiscal year
results.
Goodman Fielder has improved its core operations and gains on
the sale of its gelatin business, which contributed to a 12.2
percent increase in net profit for the year to June 2002 to
A$132.4 million.
================================
C H I N A & H O N G K O N G
================================
CHINA CENTRAL: First-half Losses Widen to HK$42.4M
--------------------------------------------------
Central China Enterprises Ltd., formerly Indesen Industries
Company Limited, reported a widened net loss of HK$42.41 million
in the six months to June, from a loss of HK$12.32 million in
the same period last year.
Revenue was down to HK$637,000 against HK$55.55 million in 2001.
Half-year dividend was omitted, unchanged from the same period
last year.
FOUNDER HOLDINGS: Loss Narrows to HK$54.53M
-------------------------------------------
Chinese publishing software firm Founder Holdings Ltd reduced
its net loss by more than half to HK$54.53 million (US$6.99
million) for the first six months of the year, from a loss of
HK$119.83 million in the same period last year, as cost
reductions partly offset a drop in turnover.
Founder Holdings supplies Chinese software to more than 90
percent of the newspaper operators in China.
The company said that since late 2001 it had slashed its
workforce by 21 percent to 1,987 as at June 30.
Its shares closed 3.17 percent lower at HK$0.61 after touching a
52-week low of HK$0.58. In the three months through Monday, the
stock had lost 33 percent.
SMARTONE TELECOM: Higher on FY Profit
-------------------------------------
SmarTone Telecommunications Holdings Ltd, Hong Kong's third-
largest cellular firm, was up HK$0.15 at HK$8.15 on volume of
241,500 shares after the company turned a profit in the year to
June, dealers said.
The company reported a year-to-June net profit of HK$115
million, reversing the year-earlier loss of HK$284 million,
while sales totaled HK$2.401 billion.
Earlier, DBS-Vickers analyst Wallace Cheung said it expected the
company to report a year to June net loss of HK$38 million,
while Dao Heng Securities analyst Benjamin Tam expected a net
loss of HK$3.0 million for the year.
SMARTONE TELECOM: Returns to Black With HK$115M Profit
------------------------------------------------------
SmarTone Telecommunications Holdings posted on Tuesday a net
profit of HK$115 million (US$14.7 million) for its year ended
June 30, its first profit in three years as cost cuts offset
slightly lower turnover.
The Hong Kong company also recommended a final dividend of seven
Hong Kong cents -- its first since 2000.
SmarTone Chief Executive Douglas Li said that cost cutting, a
scaling down of its Internet business and reduced price
competition in Hong Kong helped the firm return to
profitability.
SmarTone's earnings before interest, taxes, depreciation and
amortization (EBITDA) jumped to HK$568 million from HK$75
million a year ago, helped by an improvement in its mobile
business and a narrowed loss in its Internet division.
It said turnover fell to HK$2.4 billion (HK$307.8 million) from
HK$2.5 billion a year earlier.
SmarTone is 27 percent owned by property giant Sun Hung Kai
Properties and about 20 percent by BT Group.
WINSAN (CHINA): Proposes Share Reorganization to Cut Losses
-----------------------------------------------------------
Winsan (China) Investment Group Co Ltd is proposing to
reorganize its share capital in a bid to set off its accumulated
losses of HK$1.049 billion.
According to an AFX Asia report, the company is reducing the
nominal value of its shares from HK$0.10 per share to HK$0.01 to
raise credit of HK$140.263 million.
Winsan (China) Investment will set off its accumulated losses
using the credit, together with funds of HK$940.891 million from
its share premium account.
After the accumulated losses are reduced, a credit of about
HK$31.79 million will remain in the Company's contributed
surplus account.
WINSAN (CHINA): Reduces First-half Losses to HK$18.3M
-----------------------------------------------------
Winsan (China) Investment Group Ltd. trimmed its net loss to
HK$18.33 million for the first six months of the year, from a
loss of HK$69.19 million in the same period last year.
The company reported a revenue of only HK$171,000 for the
period, down from a revenue of HK$139.97 million in 2001.
Winsan (China) Investment has not paid interim dividends during
the last 12 months and has not paid any dividends during the
same period of last year.
=================
I N D O N E S I A
=================
BANK NIAGA: IBRA Sells More Shares Through JSX
----------------------------------------------
Bank Niaga sold 667.37 million of its shares through the Jakarta
Stock Exchange (JSX) until September 11, Asia Pulse reported.
The bank, owned by the Indonesian bank rescue agency (IBRA), is
allowed to sell 20 percent of its shares to the public through
the share market.
IBRA also is seeking to sell 51 percent of its stake in the bank
to strategic investors. It failed in its most recent attempt to
sell the stake to a Malaysian consortium over price.
IBRA deputy chairman I Nyoman Sender said that the agency earned
Rp24.26 billion from the share sales.
BANK NIAGA: Government Accepts Commerce Asset Bid
-------------------------------------------------
Bank Restructuring Agency Deputy Chairman I Nyoman Sender said
that Commerce Asset-Holding Bhd., Malaysia's second-biggest
lender, will be allowed to take control of the state-owned PT
Bank Niaga for 1.057 trillion rupiah ($117 million).
The budget and finance commission of Indonesia's parliament
shall soon approve Commerce's bid, Sender said in an interview.
TCR-AP reported yesterday that Commerce Asset has declined to
increase its offer of 26.5 rupiah per share because the price it
had offered was final.
Commerce Asset was the lone bidder for the 51 percent stake in
Niaga after Australia & New Zealand Banking Group Ltd. dropped
out.
SALIM GROUP: Repays 70% of IBRA Debt
------------------------------------
The Salim Group has agreed on Monday to repay 70 percent of the
Rp729.4 billion (US$81 million) it owes the Indonesian Bank
Restructuring Agency (IBRA), the Jakarta Post reported.
IBRA Asset Management Investment head Taufik Ma'ruf said the 70
percent, or Rp510 billion, was paid in cash, assets and with 2
percent of the total BCA shares. Salim still owes 7 percent.
Salim group, which owes IBRA some Rp58 trillion for bailing out
BCA during the 1997 financial crisis, agreed to repay the debt
under the Master of Settlement and Acquisition Agreement (MSAA).
Salim's assets include majority shares in BCA, car manufacturer
PT Astra International and in television broadcasting company PT
Indosiar Visual Mandiri.
PT Holdiko Perkasa, the holding company managing Salim assets
under IBRA, aims to raise another Rp 3.2 trillion from selling
remaining assets. These mainly cover properties such as PT
Metropolitan Kencana, which owns Wisma Metropolitan and Pondok
Indah Mall, real estate at Bumi Serpong Damai and several
resorts in Bintan.
TJIWI KIMIA: Resumes Trading Today
----------------------------------
Asia Pulp & Paper subsidiary PT Pabrik Kertas Tjiwi Kimia and
affiliate PT Indah Kiat will resume trading today after
appointing an audit committee and independent commissioners, and
publicly explaining the qualified auditor opinion attached to
their 2001 financial results, a Jakarta Stock Exchange (JSX)
spokesman told AFX-Asia.
Both companies were suspended from trade after their auditor
gave a qualified opinion on their 2001 financial results for the
second consecutive year.
Tjiwi Kimia finance director Gunawan Taslim said both companies
have appointed Grant Thornton as their new auditor after
Prasetio Utomo & Co, the local unit of Arthur Andersen, said it
took no responsibility for the contents of the 2001 financial
report.
PT Tjiwi Kimia earlier recorded a net loss of US$41.3 million in
the first half of 2002, compared to a US$25.9 million loss
during the same period last year.
=========
J A P A N
=========
HITACHI LTD: Partners With UbiNetics to Develop 3G Chip-Sets
------------------------------------------------------------
UbiNetics signed a global development and licensing agreement
with Hitachi, Ltd. to help it develop a 3G/GSM radio frequency
chip (RFIC).
UbiNetics, a supplier of 3G technology and testing solutions,
will jointly develop and license the system level design of the
RFIC to Hitachi. In turn, Hitachi will sell the new chips to its
customers, which include the world's leading handset
manufacturers.
The multi-mode solution incorporates GSM, GPRS, EDGE and UMTS
technology, so it is highly cost-effective for manufacturers.
This deal is the first of its kind to be signed by UbiNetics. It
underlines the Company's status as the world's leading
independent supplier and developer of 3G products and
Intellectual Property (IP).
"The 3G market represents an enormous growth opportunity for
Hitachi. However, given the complexity of the technology, we
needed to work with a specialist to develop the best possible
solutions for our customers," said Kunio Kobayashi, general
manager of the Radio Frequency Device Division, Multi-Purpose
Semiconductor Business Unit, Semiconductor and Integrated
Circuits, Hitachi, Ltd.
"UbiNetics was the only global supplier of chip-set solutions
that had made sufficient investments to meet our stringent
quality requirements. Furthermore, its highly experienced team
of engineers demonstrated world-leading systems knowledge,"
added Kobayashi.
"While there have been some much-publicized delays in 3G
deployments, most operators are well on the way to completing
their network build-outs. It is not a case of if 3G will arrive
-- it is here already. This is why leading device manufacturers
are making significant investments now to meet consumer demand
when the first networks go live," said Bjorn Krylander, CEO of
UbiNetics.
"Hitachi will undoubtedly be one of the leading suppliers of
chip-set solutions to this burgeoning industry. Therefore, its
decision to partner with UbiNetics and develop 3G chip-set
solutions is not only great news for us, but also a very
positive sign for the industry as a whole," added Krylander.
UbiNetics is a next generation wireless communications
technology Company. It designs and develops innovative 3G, 2.5G
and 2G products and solutions for wireless data and voice
applications and is a leader in 3G test and measurement
equipment.
The Company's 3G Test Mobile has become the industry de-facto
standard for W- CDMA infrastructure testing. This, together with
the CS100 Node B Emulator and portable TM200 Test Mobile,
position UbiNetics at the center of 3G interoperability testing.
UbiNetics also provides the industry's most robust protocol
software and physical layer IP portfolio for 3G chip-set and
handset developers and manufacturers.
The Company has developed a unique range of creative products
for UMTS and GPRS/GMS applications including customized embedded
modules and development tools.
The Company was formed in January 1999 from PA Consulting
Group's Wireless Telecommunications Practice. Since 1999,
UbiNetics has grown to over 400 employees with seven
international offices in the UK (Cambridge, Global Headquarters,
and Swindon), Hong Kong, Japan, India and the US.
Hitachi Europe Ltd. - http://www.hitachi-eu.com/semiconductors/
- is a wholly owned subsidiary of Hitachi, Ltd. Japan. It has
operations throughout EMEA, which provide sales, marketing,
technical support and research and development.
Hitachi's semiconductor and display products are key components
in the fields of smart cards, communications, automotive,
consumer, industrial, displays and system LSI. They include the
SuperH(TM) RISC microprocessors, the H8 microcontroller family,
smart card controllers, TFT displays, memories (Flash and SRAM),
transistors and diodes, and network products.
Hitachi, Ltd. - http://global.hitachi.com- is a leading global
electronics Company, headquartered in Tokyo, Japan. It has
approximately 320,000 employees worldwide. Fiscal 2001 (ended
March 31, 2002) consolidated sales totaled 7,994 billion yen
($60.1 billion). The Company offers a wide range of systems,
products and services in market sectors, including information
systems, electronic devices, power and industrial systems,
consumer products, materials and financial services.
According to TCR-AP Hitachi Ltd's cash and cash equivalents as
of June 30, 2002 totaled 799.8 billion yen (US$6,665 million), a
decline of 229.5 billion yen (US$1,913 million) during the first
quarter. Debt on June 30, 2002 stood at 2,952.7 billion yen
(US$24,606 million), 45.4 billion yen (US$379 million) less than
at March 31, 2002.
MATSUSHITA ELECTRIC: Enters JV Deal With Minebea
------------------------------------------------
Minebea Co., Ltd. and Matsushita Electrical Industrial Co., Ltd.
has agreed to commence joint product development and consignment
production of DC axial flow box fan motors:
1.Outline of Joint Product Development and Consignment
Production
1) Products
DC axial flow box fan motors (fan motors)
2) Operational structure
Development:
Two companies will combine the respective proprietary
technologies and jointly develop products. The joint development
will be conducted at Minebea's Karuizawa Plant.
Production:
Jointly developed products and products to be consigned to
Minebea by Matsushita will be produced at the Xicen Factory of
Minebea Electronics & Hi-Tech Components (Shanghai) Ltd.,
Minebea's subsidiary in China.
Sales:
Of fan motors to be jointly developed, it is intended that,
Minebea will sell those with ball bearings, while Matsushita
will sell those with hydro-wave bearings (Matsushita's unique
fluid-dynamic bearings) and those with high reliability sleeve
bearings, under their own brand names, respectively, as in the
past.
Matsushita will sell the products to be consigned to Minebea
under its own brand.
3) Start of production
Production is scheduled to start in February 2003.
4) Sales targets
Minebea and Matsushita aim to sell jointly-developed products as
follows:
Minebea:
Fiscal Year ending March 2004 0.5 million units/month
Fiscal Year ending March 2006 4.0 million units/month
Matsushita:
Fiscal Year ending March 2004 0.5 million units/month
Fiscal Year ending March 2006 4.0 million units/month
2.Purpose of Joint Development and Consignment Production
This alliance enables the companies to develop, manufacture and
sell rapidly and in a timely manner, fan motors with high-
performance and cost-competitiveness through combining the
cutting-edge product development technologies of Matsushita's
Motor Company division with Minebea's ultra precision machining,
mass production technologies and cost-competitiveness, and
further expand, and increase profitability of their fan motor
businesses.
The fan-motor market demands more compact, higher power, quieter
and lower priced products, and expansion of the fan-motor market
is anticipated in sectors such as information &
telecommunications equipment and digital home appliances, as
well as the current PC market.
Minebea Co Limited -
www.minebea.co.jp/english/home/index_top.html - is a
comprehensive manufacturer and supplier of high precision
components such as ball bearings and precision small motors for
use in information & telecommunications equipment including
primarily PCs, household electrical appliances, aircraft, and
automobiles. As of March 31, 2002, the Minebea Group encompassed
32 plants and 52 sales offices and employs a total of 43,729
persons in 14 countries.
Matsushita Electric Industrial Co., Ltd. -
www.panasonic.co.jp/global/top.html - is a worldwide leader in
the development and manufacture of electronics products for a
wide range of consumer, business, and industrial needs. It is
best known for its Panasonic, National, Technics, and Quasar
brands.
TCR-AP reported that Matsushita has been trying to free itself
out of deep losses caused by the global electronics slump,
diving computer-chip prices and competition from Asian rivals.
For the fiscal year ended in March, the Company posted a loss of
431 billion yen ($3.6 billion) the worst loss since the Company
was founded 80 years ago as sales nose-dived in almost all of
Matsushita's major sectors such as cell phones, electronics
parts, home appliances and industrial equipment.
For inquiries, contact Yasuaki Miyahara, Minebea Co., Ltd.'s
Corporate Communications Office, at telephone 03-5343-8637, or
via e-mail at ymiyahar@minebea.co.jp.
MITSUBISHI TOKYO: Dissolving UK Subsidiary
------------------------------------------
Mitsubishi Tokyo Financial Group, Inc. (MTFG; President:
Shigemitsu Miki) announced that The Bank of Tokyo-Mitsubishi,
Ltd. (BTM), a member bank of MTFG, has decided to dissolve The
Diamond Mortgage Co., Ltd. (DMC), a consolidated subsidiary of
BTM. Dissolution is expected by the end of March 2003.
1. Outline of DMC
(1) Address: 1-8, Nihonbashi 3-chome, Chuo-ku, Tokyo
(2) President: Shoichi Fukui
(3) Capital: Japanese yen 6,865 million
(4) Business: Mortgage securities business
2. Reason for Dissolution
Due to the increasingly severe business environment, DMC has
decided to cease operations and to dissolve its business.
3. Possible loss arising from the dissolution
This event is not expected to have any material effect on MTFG's
business forecast for the current fiscal year.
4. Redemption of mortgage securities
The principal and interest on the mortgage securities that DMC
has provided will be redeemed by the end of February 2003.
BTM, as the parent Company, will provide full support to the
redemption.
For further information, please contact Masahiko Tsutsumi, Chief
Manager at the Public Relations Office, at telephone 81-3-3240-
8136.
NIPPON MEAT: Asking Creditors to Extend Credit Line by JPY50B
-------------------------------------------------------------
Nippon Meat Packers Inc. is asking creditors to extend its
credit line by 50 billion yen as it seeks to cope with a sales
slump brought on by a false-labeling scandal, Bloomberg reported
Wednesday, citing President Yoshikiyo Fujii.
Meanwhile, AFX said the Company is planning to close 10 percent
of its 400 sales offices by the end of March 2006 as part of its
rehabilitation plan.
NIPPON MEAT: Meat Firm Will Not Cut Jobs, Fujii Says
----------------------------------------------------
Yoshikiyo Fujii, President of Nippon Meat Packers Inc., will
step up streamlining efforts to cope with a sharp fall of its
business due to a beef-labeling scandal, but job cuts are an
unlikely option, Kyodo News reported Wednesday.
He said the Company would consider consolidating beef-processing
facilities and shutting down loss-making restaurants in its food
service operations.
N.J. KANRI: Women's Apparel Firm Enters Bankruptcy
--------------------------------------------------
The Japan court has declared N.J. Kanri KK bankrupt, according
to Tokyo Shoko Research Ltd.
The real estate firm, which has 160 employees, has total
liabilities of 60 billion yen.
The Company is located at Chiyoda-ku, Tokyo, Japan
NTT DOCOMO: Launches Three New M-Stage Services
-----------------------------------------------
NTT DoCoMo, Inc. and its eight regional subsidiaries will
enhance DoCoMo's M-stage(R) visual video content distribution
service with three new offerings: "M-stage V-Live", "M-stage
Visual Net," and "M-stage Book."
Following is an overview of each service, which will be
available from October 1.
M-stage V-Live Service
M-stage V-Live is a one-to-many video streaming service that
streams both live and archived video content to PDAs connected
to a PHS terminal. Both open and closed M-stage V-Live content
is provided through the infogate(TM) portal site. Open content
is available to all V-Live subscribers and includes music,
sports highlights, news, animation, tourist information and
more. Closed content is available exclusively to customers of
content providers or corporate users. Examples of this content
include English conversation lessons, security service and
investor relation tools. The new service will be available for
FOMA handsets in spring.
Content providers can choose two types of distribution form-live
or archived video content. To provide live video content,
providers need to connect their encoder PC to DoCoMo's V-Live
Center via a dedicated circuit line. To provide archived
content, providers need to send encoded content in the form of
File Transfer Protocol to DoCoMo's server.
1. Charges
For end users: Infogate subscription fee is 100 yen a month
(additional PHS transmission charges are 15 yen/minute).
Information charges may apply depending on content.
For content providers: 20,000 yen a month
- System construction (server for streaming content, circuit
line/ISDN and encoder) cost is separate.
- Content providers of closed content system are charged a fee
for CUG security (from 5,000 yen/month)
2. Compatibility
- PHS must operate at 64Kbps (PIAFS).
- PDA must incorporate PocketPC2002 OS and have PHS terminal
interface, such as CF card Slot Type II.
- PDA should have pvPlayer3 software provided by PacketVideo
installed.
The following PDAs are compatible with M-stage V-Live service.
Devices Maker/Provider
musea NTT DoCoMo
iPAQ Pocket PC H3850 Compaq Computer
hp jornada 568 HP Japan
PocketGear (MC/PG5000) NEC
Cassiopeia E-2000 Casio
M-stage Visual Net Service
M-stage Visual Net provides a communications platform that
enables numerous people to participate simultaneously in mobile
videoconferencing via FOMA video-enabled phones. Three different
videoconferencing methods are possible. First, if a
videoconference involves four people or less, the phone screen
can be split into four windows to show each person
simultaneously. Second, the phone can be set for full-screen
display of each person (up to eight participants) as they speak.
Third, all participants (up to seven participants) receive the
same image from a single videophone.
1. Service Access
a. The videoconference host accesses the Visual Net Center
(http://visualnet.cp04.docomo.ne.jp)via a FOMA handset, selects
the Visual Net menu site and specifies date, time, number of
participants and conference method.
b. Once registration has been completed, a confirmation e-mail
with login details, including a telephone number for conference
access, is sent to all participants.
c. On the specified day, participants call the designated
telephone number to begin videoconferencing.
2. Charges
Visual Net service fee is 100 yen per month (additional FOMA
transmission charges apply)
M-stage Book Service
M-stage Book service is designed to transmit digitized books and
articles to PDAs and personal computers that are connected a
DoCoMo PHS and FOMA terminal. Users can search for content by
accessing the service site and inputting book titles or key
words. Content can also be purchased and downloaded.
1. Service Access
a. M-stage Book service is accessed at
http://www.docobon.mopera.ne.jpusing a DoCoMo PHS- or FOMA-
equipped PDA.
b. By inputting key words, users can search for a variety of
content, including book reviews and excerpts, stories, and cover
photos. Dictionaries, encyclopedias and news services are also
available for a monthly fee. Subscription to Infogate is
required to purchase and download content.
2. Charges
Infogate service fee is 100 yen per month (additional
transmission charges apply). Information charges may apply
depending on content.
3.For a list of compatible devices, please see NTT DoCoMo's
website at:
www.nttdocomo.com/product/pressrelease/article/20020924_17040610
.html
NTT DoCoMo - www.nttdocomo.com - is the world's leading mobile
communications Company with more than 40 million customers. The
Company provides a wide variety of leading-edge mobile
multimedia services. These include i-mode, the world's most
popular mobile internet service, which provides e-mail and
internet access to over 33 million subscribers, and FOMA,
launched in 2001 as the world's first 3G mobile service. In
addition to wholly owned subsidiaries in the United States,
Europe and Brazil, the Company is expanding its global reach
through strategic alliances with mobile and multimedia service
providers in the Asia-Pacific, Europe and North America.
ARM - http://www.arm.com- is the industry's leading provider of
16/32-bit embedded RISC microprocessor solutions. The Company
licenses its high-performance, low-cost, power-efficient RISC
processors, peripherals, and system-on-chip designs to leading
international electronics companies.
Founded in 1975, Microsoft Corporation - www.microsoft.com - is
the worldwide leader in software, services and Internet
technologies for personal and business computing. The Company
offers a wide range of products and services designed to empower
people through great software - any time, any place and on any
device.
TCR-AP said shares in NTT DoCoMo Inc. posted a three-and-a-half
year low earlier this month due to concerns about its growth
prospects and a global slump in telecom shares.
The stock has lost more than 50 percent since April 1, which
compares with a 16 percent decline in the broad TOPIX index and
a 30 percent fall in the communications sector subindex.
"DoCoMo looks cheap from a valuation perspective, but the
Company's path to new growth is still unclear," said Hideo Ueki,
Chief Investment Officer at UBS Asset Management, which oversees
12.3 billion yen ($105 million) of investment trusts.
NTT Docomo has been striving to recruit 3G users mainly due to
the limited coverage area and poor battery life of its phones.
For inquiries, contact NTT DoCoMo's Kenya Nakatsuka at telephone
81 (0) 3 5156 1111, or via e-mail at k.nakatsuka@hco.ntt.co.jp.
SEKISUI HOUSE: Returns to Profit in First Half
----------------------------------------------
Homebuilder Sekisui House Ltd. earned a group net income of 16
billion yen in the first half of 2002, versus a net loss of 20.8
billion a year ago, Bloomberg reports.
The Company raised its full-year sales forecast by 4 percent to
1.3 trillion yen.
Sekisui House posted a consolidated net loss of 84 billion yen
for the current fiscal year ending January 2002, as a result of
its realization of approximately Y100 Billion in revaluation
losses from its holdings of land for sale, TCR-AP reported in
January.
=========
K O R E A
=========
DAEWOO MOTOR: Executives Facing Lawsuits For Huge Losses
--------------------------------------------------------
Former and current executives of the now-defunct Daewoo Group as
well as accountants are facing lawsuits for running up huge
losses at five units, Channel News Asia reported Tuesday, citing
the Korea Deposit Insurance Company.
A total of 49 former and current officials of five Daewoo Group
companies were responsible for 4.3 trillion won (US$3.5 billion)
of losses, and 35 accountants incurred 2.8 trillion won of
losses.
The agency said the losses were made through irregular
bookkeeping and unfair trading between group units.
The Daewoo Group, which was once the second biggest conglomerate
in South Korea, went bankrupt in 1999 in the wake of the Asian
financial crisis.
Daewoo's 12 units have been rescued by creditors and are now
under a debt-restructuring plan.
HYUNDAI GROUP: FSC Seeks New Bidders for Controlling Stakes
-----------------------------------------------------------
South Korea's Financial Supervisory Commission is looking for
new bidders for controlling stakes in Hyundai Group's three
financial affiliates, the Yonhap News Agency reported, citing
FSC Chairman Lee Keun-young's statement to the National
Assembly.
Lee said the FSC will continue to seek out other prospective
buyers.
The FSC is currently negotiating with U.S.-based insurer
Prudential Financial Inc. (PRU) to buy stakes in Hyundai
Investment Trust & Securities Co., Hyundai Investment Trust
Management Co. and Hyundai Securities Co. (Q.HDS).
Other than Prudential, the government is also in talks with an
unidentified U.S. investor and U.S.-based investment Company
W.L. Ross & Co, an official at the FSC, a government agency
which oversees the financial industry, said previously.
Previously, Kang Kum-shik, Chairman of the public fund
management committee, said the government's effort to sell
Hyundai Investment Trust & Securities is back at "the starting
point," indicating talks with bidders have collapsed.
Last year, the government struck an agreement to sell the
controlling stakes to American International Group Inc. (AIG)
and W.L. Ross for KRW1.1 trillion ($1=KRW1,226). AIG withdrew
subsequently after the government refused to guarantee
compensation for any possible hidden debt at Hyundai Investment
Trust & Securities. W.L. Ross said then it was still interested
in the deal and would look for other partners to bid.
The government put the three debt-laden Hyundai financial
companies up for sale as they continued to face stiff
competition locally. (M&A REPORTER-ASIA PACIFIC, Vol. No.1,
Issue No. 190, September 25, 2002)
HYUNDAI MERCHANT: Restructuring Aims to Focus Management
--------------------------------------------------------
The management of Hyundai Merchant Marine (HMM) will be back on
the right track within six months at the latest as a result of
its ongoing restructuring and debt reduction scheme, AFX Asia
reported Tuesday, citing Company President Noh Jeong-ik.
The Company is planning to sell its auto shipping operations for
US$1.5 billion to a consortium formed by Wallenius Wihelmsen
Lines (WWL) and the Hyundai Motor group.
The Company's debt-to-equity ratio will fall to as low as about
360 percent from the current 1,300 percent after it receives the
proceeds at the end of October, Noa said.
Hyundai Merchant, which currently holds a 40 percent stake in
Hyundai Asan Corp, will make no additional investments in
Hyundai Asan, which is leading ferry tours and other tourism
businesses to and within North Korea.
KOREA LIFE: Hanwha to Sign Final Contract Next Month
----------------------------------------------------
After the government issued its approval for the acquisition,
Hanwha Group said it plans to sign a final contract "sometime in
October" to buy a controlling 51 percent stake in Korea Life
Insurance Co for KRW823.6 billion, the AFX-Asia News reported,
citing a Hanwha Group spokesman.
A due diligence study will be carried out in about two weeks.
Hanwha Group said in a statement that it will seek to grow into
a group focused on financial businesses to further bolster ties
with its securities, investment trust, and other financial
units. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 190,
September 25, 2002)
* S&P Upgrades Six Korean Banks Credit Ratings
----------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it had
raised its credit ratings on six Korean banks based on recent
improvement in the financial profile of the Korean corporate
sector, which together with measures taken by the Korean
government and the banking sector should limit any resurgence of
asset quality problems.
The ratings actions on the six banks are:
To From
Chohung Bank BB+/Positive/B BB/Positive/B
Kookmin Bank BBB+/Stable/A-2 BBB/Stable/A-2
Korea Exchange Bank BB/Stable/B BB-/Positive/B
Korea First Bank BBB-/Stable/A-3 BB+/Positive/B
Shinhan Bank BBB+/Stable/A-2 BBB/Stable/A-2
Woori Bank BB+/Positive/B BB/Positive/B
The banks have succeeded in reducing their problem loans. The
average ratio of problem assets, defined as precautionary and
below, to total lending at the six banks continued to decline to
6.63 percent at June 2002 from 8.50 percent at December 2001.
"Although the high level of corporate debt remains a concern,
particularly taking into account the uncertain global economic
outlook, a recent reduction in financial leverage should enable
Korean corporations to better withstand any adverse business
cycle in the future," Standard & Poor's Director Takamasa
Yamaoka said.
During Korea's economic recovery over the past three years, the
corporate sector has prioritized debt reduction. As a result,
the aggregate debt-to-equity ratio at manufacturing companies
declined to 174 percent at March 2002 from its peak of 369
percent in 1997, according to the data recently published by
Bank of Korea.
At the same time, Standard & Poor's expects increasing household
debt will continue to impair the banks' retail portfolios even
under a favorable economic cycle. However, both the Korean
government and the banking sector are making efforts to address
this issue.
During 2002, the Korean government implemented three
countermeasures to dampen the housing boom, and ordered banks to
set aside increased provisions for household loans from May
2002. At the same time, the banking sector has gradually
improved its credit bureau functions.
The positive outlooks on the ratings on Woori Bank and Chohung
Bank indicate the potential for these banks to return to an
investment-grade rating in the medium term. The recent debt
reduction by the domestic corporate sector should benefit the
two banks' corporate loan portfolios in particular, and enable
them to better leverage their historically strong franchises.
===============
M A L A Y S I A
===============
AMSTEEL CORP.: Seeks Approval of Shareholders' Mandate Renewal
--------------------------------------------------------------
The Board of Directors of Amsteel Corporation Berhad wishes to
announce that the Company intends to seek the approval of its
shareholders for the proposed renewal of shareholders' mandate
for recurrent related party transactions of a revenue or trading
nature at its forthcoming Twenty-Seventh Annual General Meeting
to be convened.
A circular containing the information on the above will be
issued to the shareholders in due course.
ANGKASA MARKETING: Announces Disposal of Wuhan Stake for US$7.5M
----------------------------------------------------------------
On behalf of the Board of Directors of Angkasa Marketing Berhad
(AMB), OSK Securities Berhad said that the original cost of
investment of Wuhan Fortune by Angkasa Transport Equipment Sdn.
Bhd (ATE) should read as US$7.5 million (equivalent to
approximately RM28.5 million), instead of US$6.0 million
(equivalent to approximately RM22.8 million), as previously
announced.
This is in reference to the announcement made by OSK Securities
on 5 August 2002 in relation to the proposals, which include the
following:
* Proposed disposal by Angkasa Transport Equipment Sdn. Bhd.
(ATE), a wholly owned subsidiary of AMB Venture Sdn. Bhd.
(AMBV), which is in turn a wholly owned subsidiary of Angkasa
Marketing Berhad (AMB), of its 50% equity interest in Wuhan
Fortune Motor Co., Ltd. for a cash consideration of Rmb1; and
* Proposed settlement of inter-company advances to Wuhan Fortune
for a cash consideration of Rmb94.66 million and proposed waiver
of the interest on inter-company advances amounting to Rmb70.82
million.
AOKAM PERDANA: Appoints Andrew Gerard Purcell to the Board
----------------------------------------------------------
Aokam Perdana Bhd has appointed Andrew Gerard Purcell as
Director of the Board, effective 24 September 2002.
Mr Purcell, an Australian, had 16 years experience in merchant
banking.
TCR-AP reported Friday that the Kuala Lumpur Stock Exchange has
suspended the trading of Aokam Perdana shares with effect on
September 25 at 9 a.m. after it was unable to submit its
restructuring plans to the authorities pursuant to the KLSE
Practice Note 4/2001.
AVENUE ASSETS: Completes Mega Palm Sale
---------------------------------------
The Board of AVENUE Assets Berhad is pleased to announce that
the Company has completed the Sale and Purchase Agreement dated
14 November 2000, entered into between AVENUE and Lucky Matrix
Sdn Bhd (LMSB) for the disposal of the entire equity interest in
Mega Palm Sdn Bhd (MPSB), which is in receivership, to Country
Heights Properties Sdn Bhd (CHPSB) for a total cash
consideration of RM1.00 only.
With the completion of the agreement, MPSB ceased to be a
subsidiary of the Company with effect from 23 September 2002.
CHASE PERDANA: KLSE Approves Request for Extension of Time
----------------------------------------------------------
Chase Perdana Berhad (CPB) had, on 26 August 2002, applied to
the Kuala Lumpur Stock Exchange (KLSE) for an extension of time
for a further two (2) months to 29 October 2002 for the Company
to obtain all the necessary approvals from the regulatory
authorities in relation to the proposed debt restructuring
scheme and proposed Emloyees' Share Option Scheme (ESOS).
On behalf of the Board of Directors of CPB, Southern Investment
Bank Berhad (SIBB) wishes to announce that the KLSE has, via its
letter dated 23 September 2002, approved an extension of time
from 30 August 2002 to 6 September 2002 to enable CPB to obtain
all the necessary approvals from the regulatory authorities.
CPB had obtained all the necessary approvals from the regulatory
authorities on 6 September 2002. The approval from the Foreign
Investment Committee was obtained on 15 May 2002, which was
announced on 16 May 2002.
CPB has obtained the Securities Commission's approval on 6
September 2002, which was announced on 9 September 2002.
EPE POWER: Granted Delay to Make Requisite Announcement
-------------------------------------------------------
On behalf of EPE Power Corporation Berhad, Commerce
International Merchant Bankers Berhad is pleased to announce
that the Kuala Lumpur Stock Exchange has granted an extension of
two (2) months from 29 August 2002 to 30 October 2002 to make
the Requisite Announcement, pursuant to Practice Note 4/2001 of
the Listing Requirements of KLSE.
This is in reference to EPE's announcement on 16 August 2002 on
the application to the KLSE for extension of time of three (3)
months to 30 November 2002 to make the Requisite Announcement of
EPE's plan to regularize its financial condition.
ESPRIT GROUP: KLSE Rejects Two-month Extension Request
------------------------------------------------------
Esprit Group Berhad refers to its announcement on 30 August 2002
in regard to their application to the Kuala Lumpur Stock
Exchange to seek for an approval of two (2) months until 31
October 2002 for the Company to submit its regularization plan
to the relevant authorities.
The Board of Directors wish to inform that the Exchange has
rejected the said application via their letter dated 23
September 2002.
The Company wrote to the Exchange on 24 September 2002 to appeal
against the decision made by the Exchange.
KUALA LUMPUR INDUSTRIES: SC Approves Debt Restructuring Plan
------------------------------------------------------------
On behalf of the Board of Directors of Kuala Lumpur Industries
Holdings Berhad (KLIH), Commerce International Merchant Bankers
Berhad (CIMB) is pleased to announce that the Securities
Commission (SC) has vide its letter dated 20 September 2002
approved the proposed corporate and debt restructuring within
the framework of Pengurusan Danaharta Nasional Berhad Act, 1998,
as proposed save for the following change:
(i) The purchase consideration for the proposed acquisition of
Taman Equine (M) Sdn Bhd by Equine Capial Berhad (ECB) has been
revised from RM199,000,000 to be satisfied by the issuance of
110,000,000 new ordinary shares of RM1.00 each in ECB (ECB
Shares) and RM89,000,000 nominal value ECB irredeemable
convertible unsecured loan stocks (ICULS) to RM172,000,000 to be
satisfied by the issuance of 94,600,000 ECB Shares and
RM77,400,000 nominal value ECB ICULS.
The approval of the SC for the Proposal is subject to, amongst
others, the following conditions:
(i) The approval of the SC is to be obtained for any revision to
the terms and conditions for the ECB ICULS, ECB Redeemable
Convertible Secured Loan Stocks A (RCSLS A) and ECB Redeemable
Convertible Secured Loan Stocks B (RCSLS B);
(ii) A moratorium is to be imposed on the sale of the ECB Shares
to be issued to the vendors of Equine pursuant to the
acquisition of the entire equity interest of Equine by ECB. In
this respect, the said vendors are not allowed to sell, transfer
or assign their shareholdings representing 50% of the total ECB
Shares issued as consideration for the said acquisition for at
least one (1) year from the date of the listing of the said ECB
Shares. Thereafter, on every subsequent year, the said vendors
are only allowed to sell, transfer or assign not more than one-
third (1/3) per annum of their respective shareholdings in ECB
which are under moratorium;
(iii) CIMB, KLIH and ECB are required to obtain the approvals of
all other relevant regulatory authorities before the
implementation of the Proposal and to comply with any conditions
imposed by the authorities;
(iv) The utilization of proceeds from the proposed rights issue
is subject to the following conditions:
(a) The approval of the SC is to be obtained for any change to
the original utilization of proceeds if the change in
utilization is for purposes other than for the core businesses
of ECB;
(b) The approval of the shareholders of ECB must be obtained for
any change of 25% or more to the original utilization of
proceeds. In the event the change to the original utilization of
proceeds is less than 25%, appropriate disclosures are to be
made to the shareholders of ECB;
(c) Any extension of time for the utilization of proceeds from
the proposed rights issue is to be approved by a resolution of
the Board of Directors of ECB and must be disclosed to the Kuala
Lumpur Stock Exchange (KLSE); and
(d) Appropriate disclosures on the status of the utilization of
proceeds from the proposed rights issue is to made in the
quarterly reports and annual reports of ECB until the proceeds
are fully utilized.
The SC has also approved the application by certain vendors of
Equine (namely, Datin Wong Mun Yee, Lim Ah Yee, Lim Ah Chai, the
estate of Lim Ah Soo (deceased), Muheji @ Mahyuddin bin Haji
Othman, Datuk Patrick Lim Soo Kit and Mei Shouting) for an
exemption from the obligation to undertake a mandatory general
offer for the remaining ECB Shares not held by them after the
acquisition of Equine by ECB, under Practice Note 2.9.3 of the
Malaysian Code on Take-Overs and Mergers, 1998.
The Proposals are still subject to approvals being obtained from
the following:
(i) The KLSE for the following:
(a) The admission to the Official List and the listing of and
quotation for the entire issued and paid-up share capital of ECB
on the Main Board of the KLSE;
(b) The listing of and quotation for the ECB ICULS on the Main
Board of the KLSE; and
(c) The listing of and quotation for the new ECB Shares to be
issued pursuant to the conversion of the ECB RCSLS A, ECB RCSLS
B and ECB ICULS on the Main Board of the KLSE; and
(ii) The Ministry of International Trade and Industry for the
recognition of Bumiputera investors pursuant to the proposed
offer for sale, if necessary.
LION LAND: Seeks Approval of Shareholders' Mandate Renewal
----------------------------------------------------------
The Board of Directors of Lion Land Berhad wishes to announce
that the Company intends to seek the approval of its
shareholders for the proposed renewal of shareholders' mandate
for recurrent related party transactions of a revenue or trading
nature at its forthcoming Seventy-Second Annual General Meeting
to be convened.
A circular containing the information on the above will be
issued to the shareholders in due course.
MALAYSIA GLOBAL: Moody's Ups Rating to Baa1
-------------------------------------------
Moody's Investors Service has upgraded to Baa1 from Baa2 the
rating of US$600 million trust certificates issued by Malaysia
Global Sukuk Inc.
The rating upgrade, Moody's said, is prompted by the upgrade of
Malaysia's foreign currency rating to Baa1 from Baa2 on
September 25, 2002.
The rating on the trust certificates is closely linked to the
Baa1 rating of Malaysia's foreign currency debt because
Malaysia's payment obligations in the transaction rank pari
passu with its senior unsecured foreign currency debt
obligations.
SPORTMA CORPORATION: Defaults in RM222.05M Payment
--------------------------------------------------
As required by the KLSE Practice Note 1/2001, Sportma
Corporation Berhad (Special Administrators Appointed) hereby
provides the details of its default in payment as at 31 August
2002.
The total default by Sportma on the principal sum plus interest
as at 31 August 2002 amounted to RM222,055,378.24. The default
payment is in respect of revolving credit facilities, trade
financing and overdraft utilized by Sportma.
The proposed settlement to the amount above would be settled in
accordance to the Proposed Corporate Debt Restructuring Scheme
of Sportma.
There is no further default of payment by the Company, save as
discussed above, since the previous announcement with regard to
this Practice Note.
SUNWAY HOLDINGS: Enters Into Supplemental Collateral Agreement
--------------------------------------------------------------
On 27 June 2002, the Board of Directors of Sunway Holdings
Incorporated Berhad (SunInc) announced that the Company had on
even date entered into inter-alia, a collateral agreement with
Sunway Construction Berhad (SunCon) (Collateral Agreement) in
support of the Proposed Divestment to SunCon (as defined
therein), whereby SunInc undertakes certain obligations relating
to the financial position of the companies to be acquired by
SunCon.
The Proposed Divestment to SunCon forms part of the proposed
corporate restructuring exercise of Sunway Building Technology
Berhad (SunTech) Group as earlier announced by SunInc and
SunTech on 13 May 2002 and 27 June 2002.
It principally involves SunTech's sale of its entire equity
interests in Sunway Industries Sdn Bhd (an associated company of
SunTech) and 9 subsidiaries of SunTech which are principally
involved in the construction and construction-related sector
(Construction Subsidiaries) (which collectively shall be grouped
under Sunway Machineries Services Sdn Bhd, a wholly owned
subsidiary of Sun-Block PMI Sdn Bhd, which in turn, is a wholly
owned subsidiary of SunTech) to SunCon.
As earlier announced on 27 June 2002, pursuant to the Collateral
Agreement, SunInc undertakes to, amongst others, compensate
SunCon for any Third Party Debts (as defined below) which remain
unrecovered one year after the completion date of the Proposed
Divestment to SunCon.
Under the Collateral Agreement, Third Party Debts has been
defined as "all amounts of whatsoever nature outstanding, owing
or payable to the Said Companies (comprising Sunway Machineries
Services Sdn Bhd, Sunway Industries Sdn Bhd and the Construction
Subsidiaries), as disclosed in the audited accounts of the Said
Companies as at 31 December 2001 and up to the date of
completion of SunTech's Proposed Divestment to SunCon
(Completion Date) but excluding those amounts owing to the Said
Companies by SunInc and/or any of its subsidiaries and
associated companies and Sunway City Berhad and/or any of its
subsidiaries and associated companies as at the Completion
Date."
In this connection, the Board of Directors of SunInc announces
that the Company has on 24 September 2002 entered into a
supplemental collateral agreement wherein the definition of
Third Party Debts has been amended to"(i) all outstanding debts
that are owing and payable to the Said Companies (comprising
Sunway Machineries Services Sdn Bhd, Sunway Industries Sdn Bhd
and the Construction Subsidiaries) as at 31st July 2002 and(ii)
all outstanding payments that are or may become due and payable
to the Said Companies for and in respect of all works and
services duly executed, performed and/or done by the Said
Companies in the course of their business on or before 31st July
2002 but shall exclude any outstanding debts and payments that
are or may become payable to the Said Companies by (a) Suninc
and/or any of its subsidiaries and associated companies and (b)
Sunway City Berhad and/or any of its subsidiaries and associated
companies."
Save for the amendment to the definition of Third Party Debts,
all other terms and conditions of the Collateral Agreement
remain unchanged.
Copies of the Collateral Agreement and the Supplemental
Collateral Agreement are available for inspection at the
Registered Office of SunInc at Level 16, Menara Sunway, Jalan
Lagoon Timur, Bandar Sunway, 46150 Petaling Jaya, Selangor Darul
Ehsan during normal business hours from Mondays to Fridays
(excluding public holidays) within 14 days from the date of this
announcement.
TAT SANG: Disposes Assets to Mercuries for RM19.9M
--------------------------------------------------
The Board of Directors of Tat Sang Holdings Berhad (TSHB), in a
statement to the Kuala Lumpur Stock Exchange, said that the
Company's former related company, Tat Sang Sdn Bhd (TSSB), had
on 30 June 2001 disposed off its assets to Mercuries & Muar
Wooden Furniture Mfg Sdn Bhd (MMWF) amounting to RM19,996,555.25
before the disposal of TSSB was completed on 28 September 2001.
Tat Sang said the original cost of investment in TSSB is
RM25,778,128. It does not expect a gain or a loss arising from
the disposal, as the transaction was arriving at the
subsidiary's book value.
Consideration and liabilities assumed by purchaser are as
follows:
Purchases of plant & equipment from TSSB: 7,670,474
Purchases of stocks from TSSB: 3,946,336
Inter company debts due to TSSB assign to MMWF: 8,379,745
TENAGA NASIONAL: Sets EGM to Oct 10
-----------------------------------
On behalf of Tenaga Nasional Berhad (TNB), Commerce
International Merchant Bankers Berhad wishes to announce the
Notice of Extraordinary General Meeting as follows:
"NOTICE IS HEREBY GIVEN that an Extraordinary General Meeting of
Tenaga Nasional Berhad (TNB) will be held at Dewan Serbaguna,
Kompleks Sukan TNB, Jalan Pantai Baru, 59200 Kuala Lumpur,
Malaysia on Thursday, 10 October 2002 at 9.30 a.m. for the
purpose of considering and, if thought fit, passing with or
without modifications, the following Ordinary Resolutions:
ORDINARY RESOLUTION 1
PROPOSED ISSUE OF FIVE (5)-YEAR UNSECURED CONVERTIBLE REDEEMABLE
INCOME SECURITIES (PROPOSED CRIS ISSUE)
"THAT, subject to the approvals being obtained from the relevant
authorities, approval be and is hereby given to the Company to:
(i) issue five (5)-year unsecured convertible redeemable income
securities (CRIS) at 100% of the nominal value of the CRIS with
a coupon rate to be determined by a committee appointed by the
Directors of the Company and an issue size which does not exceed
RM200 million nominal value of CRIS and that the CRIS shall be
convertible into new ordinary shares of RM1.00 each in the
Company (TNB Shares) at a conversion price to be determined by a
committee appointed by the Directors of the Company and
otherwise on such further terms and conditions as the Directors
of the Company may determine and provide in the trust deed to be
entered into by the Company ("Trust Deed") and such other
documents to be entered into constituting the CRIS, the
indicative terms of which are set out in Section 2.1 of the
Circular to the shareholders of the Company dated 25 September
2002;
(ii) allot and issue such number of new TNB Shares, credited as
fully paid-up, to holders of the CRIS, which are required to be
issued upon conversion of the CRIS based on the indicative terms
which are set out in Section 2.1 of the Circular to the
shareholders of the Company dated 25 September 2002 and in
accordance with the terms of the Trust Deed and that such new
TNB Shares shall upon allotment and issue rank pari-passu in all
respects with the then existing TNB Shares except that they will
not be entitled to any dividends, rights, allotments and/or
other distributions the entitlement date of which precedes the
date of allotment of the new TNB Shares;
(iii) allot and issue such number of new TNB Shares, credited as
fully paid-up, to holders of the CRIS, which are required to be
issued upon any adjustments and/or reset of the conversion price
of the CRIS based on the indicative terms which are set out in
Section 2.1 of the Circular to the shareholders of the Company
dated 25 September 2002 and in accordance with the terms of
adjustments and reset of the conversion price to be determined
by a committee appointed by the Directors of the Company and as
provided in the Trust Deed and that such new TNB Shares shall
upon allotment and issue rank pari-passu in all respects with
the then existing TNB Shares except that they will not be
entitled to any dividends, rights, allotments and/or other
distributions the entitlement date of which precedes the date of
allotment of the new TNB Shares;
(iv) utilize the proceeds from the Proposed CRIS Issue for such
purposes and in such manner as set out in Section 3 of the
Circular to the shareholders of the Company dated 25 September
2002;
AND THAT the Directors of the Company be and are hereby
empowered and authorized to give effect to the aforesaid subject
to, and with full power to amend and/or assent to or comply
with, any conditions, modifications, variations and/or
amendments in any manner as may be required or approved by the
relevant authority or authorities and to take all steps and to
enter into all such commitments, transactions, agreements,
deeds, arrangements, undertakings, indemnities, transfers,
assignments and guarantees with any party or parties as may be
required in order to implement, finalize and give full effect to
the Proposed CRIS Issue."
ORDINARY RESOLUTION 2
PROPOSED ISSUE OF FIVE (5)-YEAR UNSECURED GUARANTEED
EXCHANGEABLE BONDS (PROPOSED GEB ISSUE)
"THAT, subject to the approvals being obtained from the relevant
authorities, approval be and is hereby given for the Company to:
(i) issue five (5)-year unsecured guaranteed exchangeable bonds
("GEB") by TNB Capital (L) Ltd (Company No. LL01816) (TNB
Capital), a wholly owned subsidiary of TNB, at 100% of the
nominal value of the GEB with a coupon rate to be determined by
a committee appointed by the Directors of the Company and an
issue size which does not exceed USD500 million nominal value of
GEB, which will be guaranteed by the Company and that the GEB
shall be exchangeable into new ordinary shares of RM1.00 each in
the Company ("TNB Shares") at an exchange price to be determined
by a committee appointed by the Directors of the Company and
otherwise on such further terms and conditions as the Directors
of the Company may determine and provide in the indenture to be
entered into by TNB Capital and the Company ("Indenture") and
such other documents to be entered into constituting the GEB,
the indicative terms of which are set out in Section 2.2 of the
Circular to the shareholders of the Company dated 25 September
2002;
(ii) allot and issue such number of new TNB Shares, credited as
fully paid-up, to holders of the GEB, which are required to be
issued upon exchange of the GEB based on the indicative terms
which are set out in Section 2.2 of the Circular to the
shareholders of the Company dated 25 September 2002 and in
accordance with the terms of the Indenture and that such new TNB
Shares shall upon allotment and issue rank pari-passu in all
respects with the then existing TNB Shares except that they will
not be entitled to any dividends, rights, allotments and/or
other distributions the entitlement date of which precedes the
date of allotment of the new TNB Shares;
(iii) allot and issue such number of new TNB Shares, credited as
fully paid-up, to holders of the GEB, which are required to be
issued upon any adjustments and/or reset of the exchange price
of the GEB based on the indicative terms which are set out in
Section 2.2 of the Circular to the shareholders of the Company
dated 25 September 2002 and in accordance with the terms of
adjustments and reset of the exchange price to be determined by
a committee appointed by the Directors of the Company as
provided in the Indenture and that such new TNB Shares shall
upon allotment and issue rank pari-passu in all respects with
the then existing TNB Shares except that they will not be
entitled to any dividends, rights, allotments and/or other
distributions the entitlement date of which precedes the date of
allotment of the new TNB Shares;
(iv) utilize the proceeds from the Proposed GEB Issue for such
purposes and in such manner as set out in Section 3 of the
Circular to shareholders of the Company dated 25 September 2002;
AND THAT the Directors of the Company be and are hereby
empowered and authorized to give effect to the aforesaid subject
to, and with full power to amend and/or assent to or comply
with, any conditions, modifications, variations and/or
amendments in any manner as may be required or approved by the
relevant authority or authorities and to take all steps and to
enter into all such commitments, transactions, agreements,
indentures, deeds, arrangements, undertakings, indemnities,
transfers, assignments and guarantees with any party or parties
as may be required in order to implement, finalize and give full
effect to the Proposed GEB Issue."
ORDINARY RESOLUTION 3
PROPOSED PLACEMENT OF CRIS TO EPF
"THAT, subject to the passing of Ordinary Resolution 1 above and
approvals being obtained from all relevant authorities, approval
be and is hereby given to the Company to issue up to RM200
million nominal value five (5)-year unsecured convertible
redeemable income securities (CRIS) to the Employees Provident
Fund Board (EPF) of such amount to be determined after the
conclusion of the book-building process and upon EPF's bid being
successful AND THAT the Directors of the Company be and are
hereby authorized to do all such acts and things as they
consider fit or expedient as are necessary in order to
implement, finalize and give full effect to the proposed
placement of CRIS to EPF."
ORDINARY RESOLUTION 4
PROPOSED PLACEMENT OF CRIS TO SASB
"THAT, subject to the passing of Ordinary Resolution 1 above and
approvals being obtained from all relevant authorities, approval
be and is hereby given to the Company to issue up to RM200
million nominal value five (5)-year unsecured convertible
redeemable income securities (CRIS) to Amanah Raya Nominees
(Tempatan) Sdn Bhd - Skim Amanah Saham Bumiputera (SASB) of such
amount to be determined after the conclusion of the book-
building process and upon SASB's bid being successful AND THAT
the Directors of the Company be and are hereby authorized to do
all such acts and things as they consider fit or expedient as
are necessary in order to implement, finalize and give full
effect to the proposed placement of CRIS to SASB."
=====================
P H I L I P P I N E S
=====================
PHILIPPINE AIRLINES: Airline Cleared of Faulty Pumps
----------------------------------------------------
Philippine Airlines' fleet of Boeing 737 and 747 aircraft are
not equipped with the fuel pumps identified by the U.S. Federal
Aviation Administration as a potential hazard, local aviation
authorities have found.
An inspection by the Air Transportation Office on Monday (Sept.
16) found the flag carrier's 10 B737 jets - seven Series 300s
and three Series 400s - to be "airworthy."
"Therefore, we are giving these planes a clean bill of health,"
ATO chief Adelberto Yap was quoted as saying.
Meanwhile, PAL's four B747-400s passed a similar inspection
conducted by the local unit of the world-leading German aircraft
maintenance provider Lufthansa Technik.
In a report to PAL, Rainer Conrads, Vice President for technical
services of Lufthansa Technik Philippines (LTP), said that "no
affected fuel pumps" are installed on the airline's B747-400
aircraft.
Conrads said that LTP, which maintains PAL's entire fleet, did
not have such fuel pumps in its stocks and that it had no
intention of ordering them.
He also confirmed that none of PAL's B737 jets was covered by
the U.S. FAA warning since the faulty pumps were installed only
in series models not operated by PAL.
On August 30, the FAA issued an emergency advisory to airlines
worldwide after discovering that the pumps in particular
aircraft types were liable to chafe and explode in the rare
event that the fuel tanks run dry.
The FAA identified the B747, B757 and specific series models of
the B737 as aircraft types likely to be affected. PAL does not
operate the B757 or the Series 600, 700, 800 and 900 of the B737
that were cited by the FAA.
PAL's B747-400 "jumbos" are used on the long-haul trans-Pacific
routes while the narrow-bodied B737-300s and -400s are deployed
mainly on domestic and regional flights.
For more information, visit the Company's Website at
http://www.philippineairlines.com/
DebtTraders reports that Philippine Airlines' 7.601 percent
floating rate note due in 2000 (PHPA00PHN1) trades between 8 and
14. For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=PHPA00PHN1
PHILIPPINE AIRLINES: GFIs Will Pursue Judicial Proceedings
----------------------------------------------------------
The Government Financial Institutions (GFIs) will file charges
against Philippine Airlines as two other Lucio Tan-owned firms
refused to honor their commitment as guarantors of the primary
flag carrier's obligations to the government, Business World
reported.
"Yes, the GFIs will pursue judicial proceedings. But, (they)
first have to meet to discuss exactly what should be done. There
should be something more concrete by October," an unnamed source
said.
The GFIs' decision to file charges was a result of Fortune
Tobacco and Asia Brewery's refusal to honor their commitment as
guarantors of the put option deal.
Under the put option agreement forged by PAL and the government
in 1996, the two Tan-owned companies promised to settle the
primary flag carrier's obligations in case of default.
The report said both Fortune Tobacco and Asia Brewery refused to
honor their obligations as guarantors given a pending case filed
by some PAL shareholders against the GFIs.
PHILIPPINE AIRLINES: Signs Code-Share Deal With Qatar Airways
-------------------------------------------------------------
Philippine Airlines (PAL) and Qatar Airways recently signed a
code-share agreement for services between Manila and Doha,
giving PAL its fifth gateway in the Middle East.
The agreement allows both carriers to jointly offer seats on
flights operated by Qatar Airways between the two capitals,
which have now increased to five times weekly from three
previously.
"This partnership gives PAL another opportunity to be of service
to our Filipino compatriots based in Qatar. They will benefit
from this pact in terms of more frequencies to and from Doha as
well as convenient connections to PAL's domestic network," said
Henry So Uy, PAL executive Vice President for the commercial
group.
The joint service is published and displayed in the computer
reservations system as both Qatar Airways (QR) and PAL (PR)
flights.
PAL has designated the Manila-Doha flight as PR 613, departing
Manila every Tuesday, Thursday, Friday and Sunday at 11:00 p.m.,
and every Saturday at 11:15 p.m. Arrival in Doha is 5:15 a.m.
the next day.
The Doha-Manila service is known as PR 612, with departures from
the Qatari capital every Monday, Thursday, Friday and Saturday
at 11:59 p.m., and every Wednesday at 10:30 p.m.
Arrival in Manila is 2:15 p.m. Thursday for the Wednesday flight
and 3:35 p.m. the following day for the rest of the schedule.
All flights are operated using Airbus 300-600R widebody
aircraft.
Doha is PAL's fifth point in the Middle East. The flag carrier
operates three times a week to Riyadh. It also serves Dubai six
times weekly, Abu Dhabi twice weekly and Cairo twice weekly via
code-share pacts with Emirates, Gulf Air and Egypt Air,
respectively.
Qatar Airways, one of the fastest growing airlines in the world,
is PAL's eighth code-share partner, after Emirates, Gulf Air,
Egypt Air, Malaysia Airlines, Garuda Indonesia, Vietnam Airlines
and Cathay Pacific Airways.
The forging of such commercial alliances allows PAL to widen its
route network and serve new markets further afield.
For the copy of the press release, go to
http://www.philippineairlines.com/
PHILIPPINE LONG: Declares Cash Dividends on Convertible Stocks
--------------------------------------------------------------
Philippine Long Distance Telephone Company (TEL), in a letter
dated September 24, 2002, advised the Philippine Stock Exchange
that:
" During the meeting of the Board of Directors of the Company on
September 24, 2002, the following cash dividends were declared:
1. P1.00 per outstanding share of the Company's Series E 10
percent Cumulative Convertible Preferred Stock, for the annual
period ending September 30, 2002, payable October 31, 2002 to
the holders of record on October 14, 2002.
2. P1.00 per outstanding share of the Company's Series K 10
percent Cumulative Convertible Preferred Stock, for the annual
period ending September 30, 2002, payable October 31, 2002 to
the holders of record on October 14, 2002.
3. P1.00 per outstanding share of the Company's Series O 10
percent Cumulative Convertible Preferred Stock, for the annual
period ending September 30, 2002, payable October 31, 2002 to
the holders of record on October 14, 2002.
4. P1.00 per outstanding share of the Company's Series U 10
percent Cumulative Convertible Preferred Stock, for the annual
period ending September 30, 2002, payable October 31, 2002 to
the holders of record on October 14, 2002.
5. P1.00 per outstanding share of the Company's Series C 10
percent Cumulative Convertible Preferred Stock, for the annual
period ending September 30, 2002, payable November 29, 2002 to
the holders of record on October 24, 2002.
6. P1.00 per outstanding share of the Company's Series D 10
percent Cumulative Convertible Preferred Stock, for the annual
period ending October 31, 2002, payable November 29, 2002 to the
holders of record on October 24, 2002.
7. P1.00 per outstanding share of the Company's Series J 10
percent Cumulative Convertible Preferred Stock, for the annual
period ending October 31, 2002, payable November 29, 2002 to the
holders of record on October 24, 2002.
8. P1.00 per outstanding share of the Company's Series T 10
percent Cumulative Convertible Preferred Stock, for the annual
period ending October 31, 2002, payable November 29, 2002 to the
holders of record on October 24, 2002.
9. P1.00 per outstanding share of the Company's Series X 10
percent Cumulative Convertible Preferred Stock, for the annual
period ending October 31, 2002, payable November 29, 2002 to the
holders of record on October 24, 2002.
10. $1.029412 per outstanding share of the Company's Series III
Convertible Preferred Stock, payable October 15,2002 to the
holders of record on October 9, 2002.
11. P4.675 per outstanding share of the Company's Series V
Convertible Preferred Stock, payable October 15,2002 to the
holders of record on October 9, 2002.
12. US$09925 per outstanding share of the Company's Series VI
Convertible Preferred Stock, payable October 15,2002 to the
holders of record on October 9, 2002.
13. JY10.179725 per outstanding share of the Company's Series
VII Convertible Preferred Stock, payable October 15,2002 to the
holders of record on October 9, 2002.
Cash Dividend (Series E,K,O,U)
Cash P1.00 per share
Ex-Cash October 9, 2002
Record Date October 14, 2002
Date Payable October 31, 2002
Cash Dividend (Series C, D, J, T, X)
Cash P1.00 per share
Ex-Cash October 21, 2002
Record Date October 24, 2002
Date Payable November 29, 2002
For a copy of the disclosure, go to
http://bankrupt.com/misc/TCRAP_PLDT0925.pdf
DebtTraders reports that Philippine Long Distance Telephone's
11.375 percent bond due in 2012 (TELP12PHS1) trades between 92
and 94. For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=TELP12PHS1
PHILIPPINE LONG: First Pac Unable to Close Deal With Gokongwei
--------------------------------------------------------------
First Pacific Co Ltd will not be able to close, by September 30,
its deal with the group of businessman John Gokongwei Jr to form
a joint venture that will take over First Pacific's controlling
interests in Philippine Long Distance Telephone Co (PLDT),
Business World reported, citing First Pacific executive Vice
President Rebecca Brown.
Brown, who had earlier told AFX-ASIA that First Pacific was
"still continuing with the transaction" with the Gokongwei
group, could not be reached for clarification of the report.
After September 30, First Pacific could entertain offers for
First Pacific's PLDT stakes from other groups.
Under the agreement, First Pacific and the Gokongwei group will
form a joint venture to acquire First Pacific's controlling
interests in PLDT and Bonifacio Land Co.
However, the Gokongwei group's intention to conduct due
diligence first on both firms before finalizing the deal with
First Pacific has met opposition from PLDT and Metro Pacific
management. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No.
190, September 25, 2002)
PHILIPPINE TELEGRAPH: Digital Responds to Tie Up Report
-------------------------------------------------------
Digital Telecommunications Philippines, Inc. made an
announcement in reference to the news article entitled "PT&T
link up with Digitel cut due to huge debt" published in the
September 24, 2002 issue of the Manila Times.
The article reported that "DIGITAL Telecommunications Phils.
Inc. (Digital) has disconnected its link with Philippine
Telegraph and Telephone Co. (PT&T) after the latter failed to
pay the former access charges amounting to more than P44
million.
The disconnection leaves PT&T's 35,417 subscribers unable to
call Digitel subscribers. In a letter to the National
Telecommunications Commissions (NTC), PT&T Assistant Vice
President for Carrier Relations Ernesto Barro said Digitel still
refused to restore interconnection links despite PT&T's promise
to settle its obligations by paying P2 million every month.
Digital Telecommunications Philippine, Inc. (DGTL), in its
letter to the Exchange dated September 24, 2002, stated that:
Digital Telecommunications Philippine, Inc. confirmed the said
news article that Digital indeed disconnected its link with PT&T
due to the latter's failure to pay its access charges to
Digitel.
For a copy of the disclosure, visit
http://bankrupt.com/misc/TCRAP_PhilipineTelegraph0925.pdf
UNITRUST DEVELOPMENT: CityState Clarifies BusinessWorld Report
--------------------------------------------------------------
CityState Savings Bank, Inc. responded to the news article
entitled "Unitrust's foreign owners give consent to Citystate
rehab bid" published in the September 25, 2002 issue of the
BusinessWorld.
The article reported that publicly listed Citystate Savings Bank
has secured the consent of the Japanese group in Unitrust
Development Bank, thus advancing its bid to rehabilitate the
closed bank.
"On record, (we have secured) 40 percent of the stockholders of
Unitrust. We are still working on the local group which is 60
percent of the stockholders," Citystate Savings Executive Vice-
President Rey D. Delfin said in a telephone interview on
Tuesday.
Mr. Delfin said the Japanese group gave its approval the other
day.
Further to the Circular for Brokers No. 2478-2002 dated
September 19, 2002, Citystate Savings Bank, Inc. (CSB), in its
letter to the Exchange dated September 25, 2002, stated that:
The Company informed that Exchange that Citystate Savings Bank,
Inc. has secured the consent of the Unitrust's foreign owners
namely, Minamoto Saiken Kaishu Co., Ltd., Japan G. Universal Co.
Ltd., Japan G O Group International Co., Ltd., G. Cosmos Japan
Co., Ltd. Kanzaki Kyoei Kaihatsu Co., Ltd. and Genta Ogami,
through their attorney at Law and Trustee, the Nagasawa Sogo Law
Office based in Tokyo, Japan comprising 40 percent of the total
stockholding of Unitrust Bank.
The press release is found at
http://bankrupt.com/misc/TCRAP_Unitrust0925.pdf
=================
S I N G A P O R E
=================
BIL INTERNATIONAL: Posts FY02 Financial and Dividend Statement
--------------------------------------------------------------
BIL International Limited (BIL) furnished the following
additional information in respect of its Full Year Results
released on 23 September 2002:
(a) A brief analysis of the nature of the operating expenses as
disclosed in the consolidated profit and loss account on page 8
for the group for the year ended 30 June 2002 is as follows:
YTD 30 Jun 02
US$ million
Personnel expenses 9.2
Project and other costs 8.2
Reorganization costs and provisions 6.4
Operating lease expenses 3.6
Guarantee & retainer fees 16.6
Total 44.0
(b) Reason for the changes in "Listed Investments"
Current listed investment refers to our investment in Fraser and
Neave Limited, which we have been selling since June 2002.
TCR-AP reported Wednesday that BIL International has returned to
profit after two years of hefty losses because of gains from
asset sales at its hotel unit and the sale of shares in a local
beverage firm.
BIL posted a net profit of $10.4 million for the year ended June
30, compared with a loss of $119.6 million in the previous year.
CHARTERED SEMICONDUCTOR: Responds to Queries Re Announcement
------------------------------------------------------------
Chartered Semiconductor Manufacturing Ltd. (CSM) responded to
queries regarding the Company's recent announcement on the
update of its fourth-quarter 2002 revenue target.
These statements will provide a better understanding of the
rationale and timing behind the announcement:
CSM's guidance policy is as follows:
1. Provide formal detailed guidance only for the current
quarter.
2. Provide that guidance at the time of prior quarter earnings
release (filed on MASNET)
3. Formal guidance is given on: Revenue, Average Selling Price,
Utilization, Gross Profit (Loss), Net Income (Loss), and
Earnings (Loss) per Share
4. Guidance update is given mid-way through the quarter via
press release (filed on MASNET)
In April 2002, Chartered made shareholders aware of an internal
target for 4Q revenues (revenues only.) This was not
characterized as guidance since the Company's guidance
visibility is limited to the current quarter. It was stated as
an internal goal. Here is what Chartered has said publicly
regarding this goal:
19 Apr 2002 - 1Q02 Earnings Release
"Assuming that market and customer strength continues as we now
anticipate, we have set our sights on a target to achieve a
fourth-quarter 2002 revenue run-rate of at least double that of
first quarter 2002."
19 Jul 2002 - 2Q Earnings Release
"We are reiterating the target, first set in April, to double
revenues from the first quarter to fourth quarter of this year,
even though the current market environment makes it somewhat
more challenging."
2 Sep 2002 - 3Q Mid-qtr Earnings Release
"In April, Chartered set a target to double revenues, including
our share of SMP revenues, from first quarter to fourth quarter
of this year. To achieve this target, revenues must grow
approximately 20 percent sequentially in the fourth quarter.
While the latest projections from our customer base continue to
support this target, visibility into the strength of their end
markets continues to be poor, and their demands could moderate.
Chartered will provide specific fourth-quarter guidance in our
earnings release in October."
16 Sep 2002 - Rights Offering Announcement (In both Prospectus,
and in a shorter (6 page) Announcement, both filed on MASNET on
16 Sep 2002)
"In April 2002, we set a target to double revenues, including
our share of SMP revenues, from the first quarter to the fourth
quarter of this year (SMP is a minority-owned joint venture
Company and therefore, under our U.S.GAAP reporting, SMP's
revenues are not consolidated). To achieve this target, revenues
would need to grow approximately 20 percent sequentially in the
fourth quarter. Based on reduced demand projections received
from a number of our customers since our mid-quarter update on
September 2, 2002, and based on commentary published in
September regarding weakening end user markets, we now believe
that the fourth quarter target set in April 2002 is no longer
achievable. As is our normal practice, we will provide formal
guidance for the fourth quarter at the time of our third quarter
earnings release in October 2002."
During the week of August 26, in preparation for the 3Q02 Mid-
quarter release to be issued on September 2, 2002, in addition
to reassessing 3Q02, Chartered also updated its assessment of
4Q02 revenue potential by looking both at customer demand and
manufacturing capability. Customer demands as of that date still
more than supported the 4Q02 revenue target, as did
manufacturing capability. However, since customer demands for
4Q02 had fallen over the last quarter, Chartered thought it
important to include a comment on the 4Q02 revenue target in its
Mid-quarter release. The Company said:
"While the latest projections from our customer base continue to
support this target, visibility into the strength of their end
markets continues to be poor, and their demands could moderate.
Chartered will provide specific fourth-quarter guidance in our
earnings release in October."
Likewise, in preparation for the filing of the Rights Offering
Prospectus on September 16, Chartered updated its assessment of
4Q02 revenue potential once again, by looking both at customer
demand and manufacturing capability. During the week prior to
September 16, the update of customer forecasts showed that a
number of customers had lowered their 4Q02 demands and the
consolidation of customer demands no longer supported the 4Q02
target. Therefore, in Chartered's MASNET filings on 16
September, the Company highlighted this, under "Recent Financial
Developments" in both the Prospectus and in a shorter 6-page
announcement filed at the same time. Chartered stated:
"Based on reduced demand projections received from a number of
our customers since our mid quarter update on September 2, 2002,
and based on commentary published in September regarding
weakening end user markets, we now believe that the fourth
quarter target set in April 2002 is no longer achievable. As is
our normal practice, we will provide formal guidance for the
fourth quarter at the time of our third quarter earnings release
in October 2002."
"We did not provide specific numerical guidance because it
appeared, based on the trend of downward adjustments we were
seeing internally, and observing in published comments from
semiconductor analysts and other semiconductor companies, that
the industry was still in the process of reassessing end user
demand potential for 4Q02."
In summary, the Company would like to point out that at every
critical milestone, proper due diligence and assessment was
completed, and the appropriate public disclosures were made.
For a copy of the press release, visit
http://bankrupt.com/misc/TCRAP_CharteredSemicon0925.pdf
DebtTraders reports that Chartered Semiconductor Mnfg's 2.500
percent convertible bond due in 2006 (CSM06SGN1) trades between
89 and 91. For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=CSM06SGN1
CHEMICAL INDUSTRIES: Delists $50M 2.5% of Unsecured Bonds
---------------------------------------------------------
Chemical Industries (FAR EAST) Limited recently announced that
the Company's $50 million 2.5 percent unsecured bonds, which
matured on September 23, 2002 and the warrants issued by the
Company pursuant to the Deed Poll dated September 1, 1997 have
been delisted on September 23, 2002.
TCRAP reported Wednesday that Chemical Industries (FAR EAST)
Limited has successfully completed the refinancing for the
Company's $50 million 2.5 percent unsecured bonds maturing on 23
September 2002 (Bonds).
At the end of 2002, Wright Investor's Service said Chemical
Industries (Far East) Limited had negative working capital, as
current liabilities were 106.98 million Singapore Dollars while
total current assets were only 34.03 million Singapore Dollars.
CSC HOLDINGS: Cancels Rights Issue of Loan Stock Due 2005
---------------------------------------------------------
CSC Holdings Limited has canceled a total of 7,110,000 principal
amount of secured loan stocks that are due in 2005, thus
reducing the number of principal amount of loan stock from
17,001,700 to 9,891,700.
The cancellation is not expected to have a material impact on
the results of the Company for the current financial year.
TCR-AP reported that Construction firm CSC Holdings incurred a
net loss of S$10.266 million compared to S$12.757 million in the
previous year.
According to World'Vest Base, at the end of 1999, CSC Holdings
Ltd has fixed assets of S$31.2 million and current liabilities
were S$33.6 million.
NATSTEEL LTD: Clarifies Management Buyout Offer Report
------------------------------------------------------
Natsteel Limited responded to the Business Times article, which
was published on September 25, 2002.
In the Business Times article, it was mentioned (under para. 5),
that "the revised offer has been accepted by the Company's board
of directors but the deal would have to go before a shareholder
vote scheduled on October 18."
The Company clarified that the above statement is factually
incorrect as NatSteel Ltd has yet to announce or finalize the
date for the Extraordinary General Meeting (EGM) for
shareholders to vote on the management buyout offer (MBO).
As highlighted in the Company's indicative timetable in the
NatSteel Ltd announcement dated 6 September 2002, the EGM is
likely be held in October 2002. Natsteel Ltd will announce
details on the EGM via a circular to shareholders and on Masnet
prior to the EGM.
PENTON INTERNATIONAL: UK Subsidiaries Under Receivership
--------------------------------------------------------
The Board of Directors of Penton International Ltd recently
announced that its wholly owned subsidiaries Penton Tools
Limited, Tool Teck (Wales) Limited, Vogue Moulds Limited and
C.A.C. Tooling Holdings Limited had been served letters of
demand by HSBC Bank Plc (HSBC) on 19 September 2002 for payment
of all monies and liabilities owing to HSBC under a Debenture
dated 11 September 2001.
Owing to the financial positions of the UK Subsidiaries, the
Directors of the respective UK Subsidiaries had concluded that
the UK Subsidiaries were insolvent and unable to pay their debts
as and when they fall due and, therefore, requested HSBC to
appoint receivers to place the UK Subsidiaries under
receivership.
HSBC had proceeded to appoint Administrative Receivers from
PricewaterhouseCoopers on 20 September 2002.
Meanwhile, the Board will inform shareholders that it will
explore all feasible options with regard to the future of the
Company.
SPP LIMITED: Divests All Shareholding in Unit
---------------------------------------------
The Board of Directors of SPP Limited (SPP) announced that SPP
has divested all its shareholding in its wholly owned subsidiary
Progressive Builders Pte Ltd (Progressive) to Strike
Construction Pte Ltd for a consideration of $80,000 subject to
the terms and conditions of the sale and purchase agreement. As
such, Progressive ceases to be a subsidiary of SPP.
Progressive has been a dormant and inactive Company under the
Group's Engineering Services Division since 2000, following the
Group's consolidation of its engineering and construction
services under Bored Piling (Pte) Ltd. This divestment is part
of the planned corporate re-structuring and streamlining of the
Group's operations undertaken since FY2001.
The divestment is not expected to have a material effect on the
earnings per share or the net tangible assets per share of the
Company and its subsidiaries for the financial year ending 31
December 2002.
None of the Directors has any interest, direct or indirect, in
this transaction.
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.
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T H A I L A N D
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KRUNG THAI: Shareholders Approve Capital Restructuring
------------------------------------------------------
Krung Thai Bank PCL, the country's second-largest commercial
bank, is likely to resume paying dividends next year after
shareholders approved a capital restructuring plan to prepare
for a public offering and partial privatization expected in
November or by early next year, board Chairman Suphachai
Pisitvanich said Tuesday.
The restructuring will allow Krung Thai to repurchase 10.80
billion warrants from the Financial Institutions Development
Fund (FIDF), which currently controls some 87 percent of Krung
Thai, for 0.61 baht per unit, for a total of 6.59 billion baht.
Registered capital will be reduced by 108 billion baht to 111.96
billion through the cancellation of 10.8 billion unissued shares
reserved for the warrant exercise.
The bank will then reduce par value of shares to 5.15 baht from
10 baht, resulting in paid-up capital falling to 57.6 billion
baht.
Excess reserves and funds gained from the par value reduction
will be used to wipe out accumulated losses of 76 billion baht.
Krung Thai chairman Supachai Pisitvanich said following the
restructuring, accumulated losses would fall to only 84 million
baht.
Mr Supachai noted that the FIDF had injected total capital of
over 180 billion baht into Krung Thai over the past several
years with no prior writedown of capital.
Krung Thai's assets at the end of August totaled 1.105 trillion
baht, while total liabilities were at 1.035 trillion baht.
ROBINSON STORE: Debt Revamp Proceeding Without Delay
----------------------------------------------------
Robinson Department Store Plc and Robinson Planner Ltd. have
announced that all core components of the comprehensive debt
restructuring plan for the department store chain have been
implemented, Bangkok Post reports.
Robinson Planner Ltd, jointly owned by Central Retail Corp (CRC)
and Ferrier Hodgson Ltd, as a representative of the creditors,
is the Court-appointed plan preparer and plan administrator of
Robinson.
The capital increase from 148 million shares to 1,480 million
shares is part of the retailer's plan to restructure the
company's debt, which stood at about 22 billion baht at the
beginning of its rehabilitation.
Robinson Department Store has completed two major steps in the
rehabilitation plan, which was approved last December. The first
is the initial repayment totaling 938 million baht and the
second, the issue of 3,615 million baht in notes to all
unsecured financial creditors.
Robinson has paid its noteholders, including principal and
interest exceeding one billion baht, ahead of schedule as stated
in the plan.
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
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