/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/021007.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, October 7, 2002, Vol. 5, No. 198 Headlines A U S T R A L I A COLES MYER: ABN AMRO Cuts Ratings to Hold COLES MYER: Deutsche Bank Maintains Hold Rating COLES MYER: UBS Warburg Keeps Buy Rating JAMES HARDIE: Dutch Regulatory Approval Due on Capital Return C H I N A & H O N G K O N G GRANDBERG LIMITED: Winding Up Petition Pending KAM LEE ENGINEERING: Hearing of Winding Up Petition Set PRO-TREE PROJECTS: Faces Winding-Up Hearing ZHONG QUAN CHEUK: Winding Up Petition Slated for October 16 I N D O N E S I A BANK NIAGA: Higher After CAHB Passes "Fit & Proper Test KIMIA FARMA: Sees Rp96.384B FY Net Profit KIMIA FARMA: Likely To Restructure Ops Into Separate Units SEMEN GRESIK: Padang Lawmakers Meets SOE Deputy on Stake Sale J A P A N DAIEI INC: Shares Plunge 15% on Reports of Kimura Appointment FURUKAWA ELECTRIC: Sets Up Connector Terminal in China JAPAN HIGHWAY: Admits Insolvency, Liabilities at JPY25T JAPEX OMAN: Court Approves Special Liquidation KINKI NIPPON: Sees Losses of Y2.51B in First Half KK FUKUNAN: Hotel Enters Civil Rehabilitation Proceedings KURARAY CO.: Issues Stock Acquisition Rights MAZDA MOTOR: Reveals Conditions of Stock Acquisition Rights NIPPON TELEGRAPH: Demanding Mizuho to Pay Y260M in Damages NIPPON TELEGRAPH: Writing-off Losses in Overseas Affiliates RESONA HOLDINGS: Completes Reorganization of Business Divisions TORAY INDUSTRIES: Revises Interim Earnings Forecast K O R E A ASIANA AIRLINES: Fitch Maintains B Rating, Watch Negative HYNIX SEMICONDUCTOR: Immediate Sale Not Possible, Says KDB KOREA LIFE: Shareholders File Court Injunction Against KDIC M A L A Y S I A HOTLINE FURNITURE: KLSE Rejects Time Extension Request JUTAYA HOLDING: Seeks Delay to Release Requisite Announcement L & M CORPORATION: Reports August Default Payment of RM192M MALAYSIAN RESOURCES: Announces Debt Settlement Scheme MALAYSIAN RESOURCES: Abdul Rahman Ahmad Redesignated as MD/CEO PANCARAN IKRAB: Exchange Rejects Request for Extension of Time RENONG BERHAD: Down 14.75% on Concerns of Getting PN4 Rating RENONG BERHAD: Hopes to Raise MR400M by December SUNWAY HOLDINGS: Shareholders Give Nod on Proposals TECHNO ASIA: Continues to Default in Payment TECHNO ASIA: Ganda Plantations Unit Faces Winding-up Petition TECHNOLOGY RESOURCES: Directors Will Not Get Preference Shares TENAGA NASIONAL: S&P Affirms BBB Rating TENAGA NASIONAL: Cutting Foreign Currency Debt to 20% TIME ENGINEERING: Lower on Fears of Getting PN4 Classification WING TIEK: SC Receives Restructuring Scheme Proposal P H I L I P P I N E S DMCI HOLDINGS: Announces Shares' Delisting INTERNATIONAL CONTAINER: Denies Charges of Double Payments PHILIPPINE TELEGRAPH: Digital Telecom Ignores NTC Order PILIPINO TELEPHONE: Tops Biggest Money Losing Firm in 2001 METRO PACIFIC: Ranks Second Biggest Money Losing Firm in 2001 S I N G A P O R E ADVANCED SYSTEM: Issues Profit Warning ASTI HOLDINGS: Pessimistic Concerning Current Year's Results AUSSINO GROUP: Striking-off Dormant Unit CHARTERED SEMICONDUCTOR: Shanmugam Buys 27,000 Shares MEDIARING.COM: Names New Board Director T H A I L A N D RAIMON LAND: Enters Into Connected Transactions SIKARIN PLC: Appoints New Audit Committee Member UNITED COMMUNICATION: TRIS Cancels Debentures Ratings - - - - - - - ================= A U S T R A L I A ================= COLES MYER: ABN AMRO Cuts Ratings to Hold ----------------------------------------- ABN AMRO has lowered its recommendation on Coles Myer, Australia's largest retailer, to Hold from Buy to reflect recent share price strength from recent low of A$5.74. Analyst says Coles Myer's net profit of A$353.8 million for the full year was within expectations. Coles Myer Chief Executive Officer John Fletcher said the result demonstrated early progress in delivering on the Group's five- year program to rebuild the business and restore shareholder value. COLES MYER: Deutsche Bank Maintains Hold Rating ----------------------------------------------- Deutsche Bank is keeping a Hold rating for ailing retailer Coles Myer, Dow Jones Newswires reports. The rating follows Coles Myer's posting of a FY02 net profit, saying the composition of result was better than expected and working capital improvements also a positive. The analyst believes the 2003 fiscal year could be "watershed year" for company, says likelihood of different structure will depend on performance of nonfood businesses. COLES MYER: UBS Warburg Keeps Buy Rating ---------------------------------------- Brokerage UBS Warburg retains a Buy rating on Coles Myer, saying a FY02 net profit of A$353.8 million was in line with downgraded expectations. "More importantly the quality of the result was sound and showed signs that the recovery in non-food business is on track," analyst says. UBS Warburg, however, says some risk remains. UBS Warburg is waiting for more detailed guidance at the Annual Meeting in November. JAMES HARDIE: Dutch Regulatory Approval Due on Capital Return ------------------------------------------------------------- James Hardie Industries N V is in the process of finalizing Dutch regulatory approval for the capital return, which was approved by shareholders at the Annual General Meeting on 19 July 2002. It is expected that the Declaration of Non-Opposition to Capital Return will be obtained from the Court of Amsterdam, on 7 October 2002 and that the Company will be in a position to announce this on 8 October 2002. This will enable the Company to confirm that the capital return record date will be 15 October 2002 and the capital return payment date will be 1 November 2002. The capital return record and payment dates are the same as those applicable to the dividend previously announced to the Australian Stock Exchange (ASX). ================================ C H I N A & H O N G K O N G ================================ GRANDBERG LIMITED: Winding Up Petition Pending ---------------------------------------------- Yu Kit Man, Brenda, of Room 1108, 11th Floor, Hang Seng North Point Building, 335-341 King's Road, North Point, Hong Kong, is seeking for the winding up of Grandberg Limited. The petition was filed on August 13, 2002 at the High Court of Hong Kong, and will be heard before the said court on November 6, 2002 at 10:00 a.m. KAM LEE ENGINEERING: Hearing of Winding Up Petition Set ------------------------------------------------------- The petition to wind up Kang Lee Engineering Company Limited was set for hearing before the High Court of Hong Kong last October 2, 2002, at 9:30 am. Choi Shui Muk of Room 3218 Hong Yat House, Yat Tung Estate, Tung Chung, New Territories, Hong Kong filed the petition with the said court last July 8, 2002. PRO-TREE PROJECTS: Faces Winding-Up Hearing ------------------------------------------- The petition to wind up Pro-Tree Projects Co. Limited was scheduled before the High Court of Hong Kong last October 2, 2002 at 9:30 am. The petition was filed with the said court last July 8, 2002 by Chan Wai Lin, Philip, whose registered office is situated at Flat A,a 2nd Floor, Block 6, On Ning Garden, Tseung Kwan O, New Territories, Hong Kong. ZHONG QUAN CHEUK: Winding Up Petition Slated for October 16 ----------------------------------------------------------- Zhong Quan Cheuk Kei Engineering Company Limited is facing a winding up petition, which is slated to be heard before the High Court of Hong Kong on October 30, 2002 at 9:30 am. Joinwell Enterprises Limited of Room 1001-2, Workingfield Commercial Building, 408-412 Jaffe Road, Causeway Bay, Hong Kong filed the petition on August 1, 2002. ================= I N D O N E S I A ================= BANK NIAGA: Higher After CAHB Passes "Fit & Proper Test ------------------------------------------------------- PT Bank Niaga Tbk was up 5 rupiah at 35 on volume of 6.88 million shares following news that Malaysia's Commerce Asset- Holding Bhd, the sole bidder for a 51 percent government stake in the company, has passed the test to bid. Indonesian Bank Restructuring Agency (IBRA) IBRA deputy I Nyoman Sender told the AFX-Asia News that Commerce Asset-Holding Bhd (CAHB) is deemed "fit and proper" by Bank Indonesia to bid for the government's 51 percent stake in PT Bank Niaga. A dealer with a local brokerage said both the market and the company needed certainty about the divestment. The news about Commerce Asset passing the "fit and proper" test is positive in the sense that it reduces the uncertainty surrounding the divestment, the dealer said. The central bank of Indonesia approved last Wednesday the sale of the 51 percent Bank Niaga stake to Malaysia's Commerce Asset for around $120 million. KIMIA FARMA: Sees Rp96.384B FY Net Profit ----------------------------------------- PT Kimia Farma president Gunawan Pranoto is optimistic the state-run pharmaceutical firm will reach a full year net profit of 96.384 billion rupiah compared to the restated 99. 595 billion a year earlier, AFX Asia reports. Pranoto said full year sales are seen rising to 1.551 trillion rupiah from the restated 1.41 trillion rupiah. He said operating profit is also expected to increase to 133.042 billion rupiah from the restated 127.34 billion a year earlier. Operating cost is seen at 381.824 billion. "I think with our best efforts we will meet this revenue (forecast), it's not so difficult for us," Pranoto said. Pranoto added earnings are expected to improve consistently over the next five years due to an operational, organizational and financial restructure. KIMIA FARMA: Likely To Restructure Ops Into Separate Units ---------------------------------------------------------- PT Kimia Farma plans to restructure by March 2003 its operations into three fully-owned subsidiaries responsible for pharmaceutical, distribution and production activities. According to an AFX Asia report, Kimia Farma will seek shareholder approval for the move at an extraordinary general meeting on November 1. Kimia Farma will act as the holding company retaining 100 percent control of the units. In September, TCR-AP reported that Kimia Farma has planned to spin off its dispensary and wholesale divisions to concentrate only on its manufacturing operation. The government originally planned to divest a 51 percent stake in Kimia Farma this year but was postponed until mid-2003, as the company needs to be restructured first to increase its value. SEMEN GRESIK: Padang Lawmakers Meets SOE Deputy on Stake Sale ------------------------------------------------------------- Several members of West Sumatra's regional parliament has a scheduled meeting with State Enterprises Ministry privatization deputy Roes Arya Wijaya last Thursday to discuss the proposed sale of a 51 percent government stake in cement maker PT Semen Gresik, AFX Asia reported. Between four and 10 legislators were expected to meet Wijaya at his office in Jakarta, a source close to the company said. Aggressive opposition from the Padang community in West Sumatra, where one of the company's operating units, PT Semen Padang, is located, has long held up the sale of Semen Gresik. The government let lapse a put option worth some US$520 million to sell the stake to Cemex SA de CV in December last year amid threats from Semen Padang that it would take over the production facilities if the sale went through. The unit was demanding it be spun-off from the Gresik group first. Mexican cement firm Cemex owns 25.5 percent of Gresik. TCR-AP reported earlier that ratings agency Pefindo has assigned a 'selective default' rating on Semen Gresik and its 600 billion rupiah bond issue. The default rating followed unit PT Semen Padang's failure to pay its 200 billion rupiah debt to PT Jaminan Sosial Tenaga Kerja (Jamsostek) that matured last August 15. ========= J A P A N ========= DAIEI INC: Shares Plunge 15% on Reports of Kimura Appointment ------------------------------------------------------------- Shares of supermarket chain Daiei fell 15.5 percent to 147 yen last Wednesday on reports of a possible appointment of Takeshi Kimura, a former Bank of Japan official and president of KPMG Financial, by Financial Services Agency head Heizo Takenaka. According to a Financial Times report, shares were also dragged down by the company's same-store sales figures which showed a 7 percent year-on-year decline in September. Mr Kimura has previously indicated that Daiei is one of 30 companies that should be eliminated if Japan is to resolve its bad-debt problems. Daiei, Japan's third largest retail group, was a subject of a 580 billion yen ($4.7 billion) rescue in February by its main banks, after the company amassed huge debts during the bubble economy to fund an aggressive expansion campaign. The company plans to cut its interest bearing debt to 900 billion yen by February 2005 from 1,660 billion yen last February. It posted a group net loss of 332.5 billion yen in the year that ended in February but has forecast a net profit of 120 billion yen this year. Daiei has been revamping stores and introducing new store formats in an attempt to improve its appeal. FURUKAWA ELECTRIC: Sets Up Connector Terminal in China ------------------------------------------------------ Furukawa Electric Co., Limited and its wholly owned subsidiary, Furukawa Precision Engineering Co., Ltd. have jointly established a connector terminal plating company in Zhongshan, Guangdong Province, China. The new company, named Furukawa Precision Zhongshan Co., Ltd. (FPZ), will begin full-scale plating of connector terminals with precious metals in January 2003. Companies investing have completed official registration of the project with Chinese authorities on September 4, 2002, and its office buildings and production facilities are scheduled for completion by the end of this year. Current manager of the planning and management department in the metals company of Furukawa Electric, Chikamasa Ujihira, has been named CEO of the company, whose capital is US$1.28 million and staff consists of approximately 50 people (planned for 2007). The site area is 6,600 square meters with building floor space of 2,100 square meters. Both companies forecast that after commencement of sample production in January 2003 and mass-production plating in March 2003, monthly output will surpass 500 million pins in 2007, generating projected sales of 120 million yen per month. It is foreseen that terminals plated by their subsidiary will replace imports to China from Japan. The plating firm will join an integrated copper-strip manufacturing company (announced earlier this year by Furukawa Electric) in Wuxi, Jiangsu Province. The plating company in Zhongshan will be the second overseas manufacturing subsidiary for Furukawa Precision Engineering, which also owns a semiconductor lead frame manufacturing company (Furukawa Precision Thailand Co., Ltd.) in Thailand. The companies are confident in the success of the project, as there are virtually no precious metal-plating companies in China that can meet quality requirements of Japanese manufacturers despite the rapid relocation of production facilities of Japanese electronic device makers (including connector makers) to China since the second half of 2000 in response to declining IT-related product sales. The absence of suitable local suppliers has caused many companies to give up plans of relocating to China. Meanwhile, many Japanese manufacturers that risked moving operations to China have eagerly awaited the availability of a reliable plating firm, according to the companies. On September 10, 2002, Moody's Investors Service downgraded the long-term debt ratings of Furukawa Electric Co., Ltd. and its supported subsidiary, Furukawa Finance Netherlands B.V., from Baa1 to Baa3. The rating outlook was negative. Moody's sees Furukawa Electric's financial profile to remain weak over the next several years, given its expected poor operating performance and cash flow. The Company initially planned to pay off the debt associated with the OFS purchase by selling asset holdings. However, due to the falling market price of these assets, we expect that it would be difficult for the Company to substantially reduce its debt level over the intermediate term. JAPAN HIGHWAY: Admits Insolvency, Liabilities at JPY25T ------------------------------------------------------- Japan Highway Public Corp. admitted to the government that it is essentially insolvent, with liabilities exceeding assets by 7 trillion yen, Asahi Shimbun reported Friday. The Company said its huge deficit in fiscal 2001 was based on private-sector accounting methods. It also said any further road construction would have to be paid for by taxpayers. Japan Highway had previously announced it was in the black in fiscal 2001. However, its calculations had not taken into account the depreciation in value of its roads. The Company's total liabilities totaled 25 trillion yen, of which 22.7 trillion yen was in the form of loans for completed roads and 2.3 trillion yen in investment from the government. For a copy of its 2001 financial report, go to http://www.jhnet.go.jp/english/annual.pdf JAPEX OMAN: Court Approves Special Liquidation ---------------------------------------------- On October September 30, 2002, The Tokyo District Court approved the start of special liquidation for Japex Oman Limited, according to Tokyo Shoko Research. The Company has total liabilities of 7.8 billion yen. The water supply firm is located at Koriyama-si, Fukusima, Japan. KINKI NIPPON: Sees Losses of Y2.51B in First Half ------------------------------------------------- Kinki Nippon Railway Co. expects to book 2.51 billion yen in extraordinary losses in the first half of the year to September 30, due to a one-time loss under an early retirement scheme, Kyodo News reported Wednesday. According to TCR-AP, Kinki Nippon Railway incurred a net loss of 34.5 billion yen for fiscal 2001 through March 31, 2002, writing off the unrealized loss of the equity method real estate Company. It offset the unrealized loss on land for business purpose with the unrealized railway assets. The financial structure deteriorated more than expected due to the lowering net worth and the increasing interest-bearing debt as well as the realization of unrealized railway assets. KK FUKUNAN: Hotel Enters Civil Rehabilitation Proceedings --------------------------------------------------------- KK Fukunan Kaihatsu has applied for civil rehabilitation proceedings on Wednesday, according to Tokyo Shoko Research. The Company has total liabilities of 36.8 billion yen. The hotel, which has 220 workers, is located at Oomuta-si Fukuoka, Tokyo, Japan. KURARAY CO.: Issues Stock Acquisition Rights -------------------------------------------- Kuraray Co. said that the amount to be paid in upon exercise of Stock Acquisition Rights will be 412,500 yen per one unit of the Stock Acquisition Right. This is in pursuant to the resolution of the agenda concerning the issue of Stock Acquisition Rights as stock options at the 121st Ordinary General Meeting of Shareholders held on June 27, 2002 and the resolution on the issue of Stock Acquisition Rights at the meeting of its Board of Directors held on August 27, 2002. Kuraray co limited - www.kuraray.co.jp - is a manufacturer of chemical and synthetic products. The company operates through the following divisions; fibers and textiles: polyvinyl alcohol fibers, polyester, rayon, synthetic fiber, evoh fiber and antibacterial de-odorizing fiber; chemical products: resin, isoprene chemical products, activated carbon and resin processed products; man made leather, non woven fabrics and fastening materials: leather, non woven fabric, hook and loop fasteners; diversified businesses: dental materials, contact lenses, artificial kidneys, membranes, engineering and consulting. Chemical products accounted for 48% of fiscal 2001 revenues; synthetic fibers, 29%; man-made leathers, 10%; medical products and other, 13%. For inquiries, contact Kuraray Co., Ltd.'s Public Relations Dept. at telephone 81 6 6348 2111 or via e-mail at koho@kuraray.co.jp. MAZDA MOTOR: Reveals Conditions of Stock Acquisition Rights ----------------------------------------------------------- Mazda Motor announced the terms and conditions for exercising the stock acquisition rights of the 4th convertible bonds type C bonds with stock acquisition rights. 1. Conditions of stock acquisition rights Conversion price: 306 yen per share Date for calculating conversion price: October 1st Stock price (closing price) on the above-mentioned date: 273 yen Conversion premium: closing 12.09% Notes Not applicable 2. Amount to be incorporated into capital (if converted): 153 yen per share 3. Interest rate on bonds with stock acquisition rights: 0.0% per year 4. Other matters determined Not applicable (1) Issuance resolution date September 20 (2) Application period October 2 to October 4 (3) Issue date (closing date) October 7 For a copy of the press release, go to http://bankrupt.com/misc/TCRAP_mazda1004.pdf TCR-AP said the Company's shareholders capital ratio is low, at 9.96 percent, as a result of poor performances in the past and the fragile management condition of domestic dealerships and other factors. There is still a heavy interest bearing debt burden in the Company. Furthermore, the overseas sales ratio is at a high level of 61.3 percent, mainly for the North American and European markets. NIPPON TELEGRAPH: Demanding Mizuho to Pay Y260M in Damages ---------------------------------------------------------- Four firms of the Nippon Telegraph and Telephone Corp (NTT) are demanding Mizuho financial group pay 260 million yen in combined damages for losses they incurred over Mizuho's computer failure in April, Kyodo News reported Friday. The names of the NTT affiliates were not mentioned in the report. Mizuho is expected to pay the damages in full to the NTT group companies. The amount is much larger than the 50 million yen Mizuho paid to Tokyo Electric Power Co for similar losses. NIPPON TELEGRAPH: Writing-off Losses in Overseas Affiliates ----------------------------------------------------------- Nippon Telegraph and Telephone Corporation (NTT) and its subsidiary, NTT DoCoMo, Inc. (NTT DoCoMo), have made the following decision concerning the write-off of losses related to investments in overseas affiliated companies in meetings of their Board of Directors held on October 2, 2002. Outline of Write-Off NTT and NTT DoCoMo will write off losses incurred by significant declines in the market price or inferred price of shares of overseas affiliated companies held by NTT DoCoMo. The write-off is scheduled at the interim settlement of the business year ending March 2003 (i.e., September 30, 2002). 1. Write-Off Amount The total amount to be written off at the interim settlement of the business year ending March 2003(i.e., September 30, 2002) (non-consolidated settlement of NTT DoCoMo) is 573 billion yen. 2. Impact on Consolidated Settlement and Forecasts Responding to the March 2002 revision of the rules of consolidated financial statements (interim period), NTT and NTT DoCoMo have decided to prepare and to disclose their consolidated financial statements on the basis of U.S. GAAP beginning in the current interim period. Therefore, the above- mentioned write-off of losses will also be undertaken according to U.S. GAAP. The impact of this action on the interim consolidated settlements of NTT and NTT DoCoMo is currently being computed. Since the impact on the interim consolidated settlements of NTT is likely to go beyond the standard numerical value prescribed in Item 19, Paragraph 2, Article 19 of the Cabinet Office Ordinance on Corporate Disclosure, NTT will today submit an interim report to the director general of the Kanto Local Finance Bureau, in accordance with Paragraph 4, Article 24-5 of the Securities and Exchange Law. Consolidated business forecasts for the business term ending March 2003 are also scheduled to be prepared on the basis of U.S. GAAP. The impact of this change in accounting principles, as well as the impact of the above-mentioned write-off, is currently being computed and will be disclosed when completed. For inquiries, please contact the Accounting Office of Nippon Telegraph and Telephone Corporation at telephone 03-5205-5421, or via e-mail at investors@hco.ntt.co.jp. RESONA HOLDINGS: Completes Reorganization of Business Divisions --------------------------------------------------------------- The Resona Group, formerly known as Daiwa Bank Holdings, Inc, has been working on the integration of the trust business divisions within the Group. Following the partial transfer of business on October 9, 2002, such as securities investment trusts and others, from Asahi Trust & Banking Co., Ltd. (Asahi Trust & Banking) to The Daiwa Trust & Banking Co., Ltd. (Daiwa Trust & Banking), on October 1, 2002, Asahi Trust & Banking merged with The Daiwa Bank, Ltd. (Daiwa Bank). The merger completed a series of integration processes. The integration of the trust business divisions enables the Group to eliminate redundancies in businesses and pave the way for the unitary provision of high-quality trust services made available by the integration of the trust capabilities of the two institutions. From now on, as a common platform within the Group, Daiwa Bank offers group banks such private banking services as real estate and will trusts, etc. Similarly, Daiwa Trust & Banking provides pension and corporate trust services. Both of them will work on strengthening their capabilities further and, by facilitating collaborations with other member banks and fully leveraging on the Group's network, will provide the customers of the Group with high quality trust services. Businesses acquired by Daiwa Bank from Asahi Trust & Banking by the merger Amount (Billions of yen) Monetary Claims Trust 603.2 Land Trust 8.8 Special Donation Trust 0.05 Total 612.1 Daiwa Bank Holdings, Inc. changed its name to Resona Holdings, Inc. on October 1, 2002. In addition, The Daiwa Trust & Banking Co., Ltd. is scheduled to change its name to Resona Trust & Banking Co., Ltd. on October 15, 2002. Other members of the Resona Group will also change their names in such a way to include the Group name as part of their corporate names. Daiwa Bank Holdings Inc's combined securities appraisal loss at its five banks ballooned to 113.6 billion yen as of the end of June, up from 70.7 billion yen three months earlier, due to a depressed stock market, TCRAP reports. The amount of non-performing loans at the five banks namely Daiwa Bank, Asahi Bank, Kinki Osaka Bank, Nara Bank and Daiwa Trust & Banking Co declined by 37.4 billion yen to 3,318.6 billion yen in the same period. For more information, go to http://bankrupt.com/misc/tcrap_daiwa1004.pdf TORAY INDUSTRIES: Revises Interim Earnings Forecast --------------------------------------------------- Toray Industries, Inc. has revised its previous forecast of earnings for the first half of 2003 (the period from April 1, 2002 to September 30, 2002). The previous forecast was announced at the time of this fiscal year results on May 13, 2002. 1. Revised projection for the first half of FY 2003 (the period from April 1, 2002 to September 30, 2002) 1. Consolidated basis (unit: millions of yen) Net Sales Operating profit Ordinary profit Net profit Previous forecast (A) 490,000 7,000 1,000 1,000 Revised forecast (B) 490,000 11,000 7,000 1,000 Change (B-A) 0 4,000 6,000 0 Change in % 0.0% 57.1% 600.0% 0.0% Reference: result in the 1st half of FY 2002 518,390 15,956 7,726 1,248 (2) Non-consolidated basis (unit: millions of yen) Net Sales Operating profit Ordinary profit Net profit Previous forecast (A) 220,000 -2,000 -3,000 1,500 Revised forecast (B) 220,000 2,000 1,000 1,500 Change (B-A) 0 4,000 4,000 0 Change in % 0.0% 0.0% 0.0% 0.0% Reference: result in the 1st half of FY2002 238,125 1,198 5,032 4,024 2. Factors behind the revision Toray - http://www.toray.co.jp/- has been implementing a drastic strengthening of the company, in line with the 'Project New Toray 21' program announced on April 1 this year. The results achieved by this program have in some cases exceeded expectations, prompting an upward revision to management's previous forecast of interim earnings on both a consolidated and non-consolidated basis. The company plans to announce its earnings forecast for the full fiscal year (April 1, 2002 to March 31, 2003) at the time of its interim earnings announcement on November 12, 2002. This is due to the lack of visibility in the business environment in the second half of the fiscal year. II. Record of special credits and charges (non-consolidated basis) Toray expects to record the following major special credits and charges at the parent level for the first half of FY 2003 (the period ending September 30, 2002). 1. Special credits Gain on securities contributed to employee retirement benefit trust Amount: 9.5 billion yen Details: From placement of some negotiable securities as annuity assets in trust 2. Special charges Loss on liquidation and write-down of subsidiaries securities Amount: 5.7 billion yen Details: In conjunction with derogation of shares in the domestic subsidiaries In July, Moody's Investors Service changed the outlook on the Baa1 senior unsecured long-term debt ratings of Toray Industries, Inc. (Toray) to negative from stable. The change in outlook reflects Moody's concerns over Toray's ability to improve its cash flow over the medium term. Due to the severe business environment for its synthetic fiber and chemical products, Toray's performance remains weak. The Company has completed its program of investing in 23 projects in ten countries to re-engineer its global production system of polyester fiber and films and reinforce other business lines such as IT-related products. However, it cannot obtain meaningful results from the projects at present. For further information, contact Ichiro Maeda at Ichiro_Maeda@nts.toray.co.jp or Naoko Ebihara at Naoko_Ebihara@nts.toray.co.jp from the Corporate Communications Section. One may also contact Kenjiro Kamiyama at Kenjiro_Kamiyama@nts.toray.co.jp or Tatsuma Nagaya at Tatsuma_Nagaya@nts.toray.co.jp of the IR Section, or at telephone 81-3-3245-5178, fax 81-3-3245-5459. ========= K O R E A ========= ASIANA AIRLINES: Fitch Maintains B Rating, Watch Negative --------------------------------------------------------- Fitch Ratings has maintained the 'B' Senior Unsecured foreign currency rating of Korea's Asiana Airlines, Inc. on Rating Watch Negative. Asiana's rating was placed on Rating Watch Negative at the time of a downgrade in February 2002; the primary cause of the Watch Negative has been liquidity pressure due to low cash balances and substantial short-term refinancing needs. Although the operational performance and the business environment of the company have improved in the first half of 2002, considerable refinancing risk remains. About USD436 million of debt (equivalent to 2.5 times annualized earnings before depreciation and amortization after interest) is short term in nature. Any improvement in liquidity is highly dependent upon business disposals. The company completed the sale of a 39%-stake in Incheon Airport Foreign Carrier Cargo Terminal for KRW21.8 billion in May 2002 and is currently in discussions with short-listed buyers to sell its airport services and catering divisions. Management expects the sales to complete in the next few months. Asiana's profitability in the first half of 2002 picked up owing to improved yields, lower fuel prices, lower interest rates and foreign exchange gains (the positive impact of the appreciation of the Korean won on translation of its USD debt and revenues). While revenues from passenger flights (63% of sales) increased by about 9.6% in 1H2002, load factor remained stable at 71% as a result of increased capacity. Asiana's cargo operations (29% of sales) recorded an increase in yield by 7% in 1H2002. The cargo load factor increased from 70.9% in 1H2001 to 75.7% in 1H2002 because of rising shipments of technology-related products to the United States. Asiana remains vulnerable to volatility in foreign exchange rates (63% of on-balance sheet borrowings are denominated in USD), fuel prices, interest rates and the global economy. It has a very limited degree of financial flexibility and the resolution of the Rating Watch Negative is dependent upon the success of asset sales in the next few months. Fitch will continue to monitor closely the credit profile of Asiana. In accordance with Asiana's corporate rating, the 'B+' rating of the securitization transaction, OZ Receivable Plc Series 2000-1 Secured Notes, also remains on Rating Watch Negative. HYNIX SEMICONDUCTOR: Immediate Sale Not Possible, Says KDB ---------------------------------------------------------- The immediate sale of Hynix Semiconductor Manufacturing Ltd. appears impossible at the moment because of lack of interested buyers, Korea Economic Daily and AFX reported, citing main creditor Korea Development Bank. The enterprise value of the company needs to be maintained via a program of selling non-core operations and then restructuring debt, the report said. Creditors will determine a course of action on the chipmaker at a meeting scheduled sometime in October. KOREA LIFE: Shareholders File Court Injunction Against KDIC ----------------------------------------------------------- After the government's decision to sell-off of Korea Life to a Hanwha group-led consortium last week, 9 former shareholders of the insurer filed on Wednesday for a court injunction on the deal against the Korea Deposit Insurance Corp (KDIC), the government arm in charge of selling off government-owned companies, the Digital Chosun reported. In the application for the court injunction, former chair of Korea Life Choi Soon-young and other shareholders claim that the sale of the insurance company violates the Constitution. The shareholders referred to a case in 1999, the government financial sector watchdog agency judged the insurance company to be a non-viable financial organization and ordered it to reduce its capital. The reduction would strip shareholders of their managerial rights. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 197, October 04, 2002) =============== M A L A Y S I A =============== HOTLINE FURNITURE: KLSE Rejects Time Extension Request ------------------------------------------------------ Public Merchant Bank Berhad, on behalf of the Board of Hotline Furniture Berhad, wishes to inform that the Kuala Lumpur Stock Exchange (KLSE) had on even date, rejected the Company's request for an extension of time to comply with its obligation set out in paragraph 5.1 of the PN4. Further, the KLSE reminded Hotline of the Company's obligation to obtain all the authorities' approval necessary for the implementation of its scheme by 31 December 2002, failing which the Company may be de-listed from the Official List of the Exchange pursuant to Paragraph 16.09 of the Listing Requirements. JUTAYA HOLDING: Seeks Delay to Release Requisite Announcement ------------------------------------------------------------- As Jutajaya Holding Berhad had released the First Announcement on 7th December 2001, the original timeframe for the release of the Requisite Announcement in accordance with paragraph 5.1 (a) of Practice Note 4/2001 will be on 6th June 2002. The Kuala Lumpur Stock Exchange (KLSE) had on 17th June 2002 approved an extension of two (2) months from 7th June 2002 to 6th August 2002 and further extension of two (2) months from 7th August to 7th October 2002 to enable the Company to announce its Requisite Announcement to the Exchange for public release. The Board of Directors of the Company wishes to announce that the Company had on 2nd October 2002 submitted an application to KLSE for an extension of time for a further one (1) month till 31 October 2002, to release the Requisite Announcement. L & M CORPORATION: Reports August Default Payment of RM192M ----------------------------------------------------------- The Special Administrators (SA) of L & M Corporation (M) Bhd said in a disclosure to the Kuala Lumpur Stock Exchange that the total default payments to financial institutions in respect of various credit facilities by L&M Group as informed by the directors of L&M is RM192,098,246.91. As announced to the Exchange on 1 October 2002, the SA is presently in the midst of evaluating the proposals received from the open tender exercise. Upon finalization of the evaluation and award to the successful tenderer, the SA will prepare a Workout Proposal incorporating the proposed scheme of arrangement to regularize the financial conditions of L&M Group. The Workout Proposed will be presented to Pengurusan Danaharta Nasional Berhad and a meeting of secured creditors will then be held to vote on the Workout Proposal. Once approved by the secured creditors, the Workout Proposal will be submitted to the authorities for further approval prior to its implementation. MALAYSIAN RESOURCES: Announces Debt Settlement Scheme ----------------------------------------------------- Malaysian Resources Corporation Berhad (MRCB) announced Thursday the salient features of the Proposed Debt Settlement Scheme: * Upon implementation of the Scheme, the first RM5,000 owing to each unsecured creditor will be settled in cash. Subsequently, a debt waiver of 40% on the total outstanding debt due to all its unsecured creditors. * The remaining outstanding debt after the debt waiver will be settled in cash in two installments. The first installment of 50 percent of the total amount due will be paid on the implementation of the Scheme and the balance will be paid within 9 months from the implementation of the Scheme is proposed. * The settlement to the unsecured creditors will be determined following a Proof of debt exercise. Based on internal records, the total amount of debt owed to unsecured creditors is RM28.8 million. RM23.3 million is due to MRCB Group and the balance of RM5.5 million is due to trade creditors. The amount owed to individual creditors is currently being determine through a proof debt exercise which will determine for the purposes of the Scheme, the validity of claim and the actual amounts owed, if any, of the individual creditors. Based on internal records, there are approximately 200 unsecured creditor. Pending finalization of the proof of debt exercise, we are unable to provide a listing of the individual trade creditors, which would not be potentially misleading or inaccurate. Debt waived under the scheme is 40 percent or approximately RM11 million based on internal records subject to a proof debt exercise. At this point in time, we are unable to quantify the interest and penalty charges claimed by the creditors as this is subject to the proof of debt exercise. The source of funds for the Proposed Debt Settlement will be derived, inter alia, from the sale proceeds of Milmix assets. The Proposed Debt Settlement Scheme has no effect on MRCB's Group gearing position, share capital and substantial shareholders' shareholding. The Proposed Debt Settlement Scheme is not expected to have any material effect on the Group net tangible assets per share and earnings per share. The estimated time frame for completion of the Proposed Debt Settlement Scheme is 12 months from the date of the order. None of the Directors and substantial shareholders of MRCB has any interest, direct or indirect, in the Proposed Debt Settlement Scheme of Milmix. The Board of Directors of MRCB, after careful consideration and having considered all relevant factors, is of the opinion that the Proposed Debt Settlement Scheme of Milmix is in the best interest of the Company and its shareholders. The Proposed Debt Settlement Scheme of Milmix does not involve issuance of new shares and therefore has not departed from the Securities Commission's Policies and Guidelines on Issue/Offer of Securities. TCR-AP reported in its Friday edition MRCB's announcement of the winding-up petition against its wholly owned subsidiary, Milmix Sdn Bhd, which is scheduled for hearing on 22 January 2003. MALAYSIAN RESOURCES: Abdul Rahman Ahmad Redesignated as MD/CEO -------------------------------------------------------------- Malaysian Resources Corp Bhd's Abdul Rahman Ahmad has been redesignated from his chief executive officer position to group managing director/chief executive officer with immediate effect. Reason for the move was not disclosed. TCR-AP reported Friday that Milmix Sdn Bhd, a wholly owned subsidiary of Malaysian Resources, has been served a winding-up petition by Classic Aluminium & Glazier, and is scheduled for hearing on 22 January 2003. As announced on 25 September 2002, the High Court of Malaya had on 23 September 2002, granted Milmix a Restraining Order (RO) for a period of 3 months from the date of the RO to allow for implementation of the Proposed Debt Settlement. Amounts owing to unsecured creditors including Classic are to be settled under the Proposed Debt Settlement. PANCARAN IKRAB: Exchange Rejects Request for Extension of Time -------------------------------------------------------------- Public Merchant Bank Berhad (PMBB), on behalf of the Board of PIB, wishes to inform that the Kuala Lumpur Stock Exchange had on even date, rejected the Company's request for an extension of time to comply with its obligation set out in paragraph 5.1 of the PN4. TCR-AP in its September 23 edition said that PMBB had on even date, on behalf of the Board of Directors of PIB, made an application to the KLSE to seek a further extension of time from 20 September 2002 to 20 October 2002 for the Company to make the Requisite Announcement. RENONG BERHAD: Down 14.75% on Concerns of Getting PN4 Rating ------------------------------------------------------------ Renong Berhad was down 0.09 ringgit or 14.75 percent at 0.52 on volume of 8.667 million shares on fears that the company may not be able to raise sufficient funds from its private placement of shares, which will result in a deficit in its shareholders funds and a reclassification as a PN4 stock, dealers said. "Investors are worried that Renong may not raise the money needed to avoid a deficit in their shareholders fund. If they fail, that means the company will have to fall under the PN4 condition," an institutional dealer with a local brokerage said. An analyst with another brokerage said that the company is not doing well. "I doubt that the private placement would attract much interest." Under the Kuala Lumpur Stock Exchange's definition, a PN4 company is a financially-distressed company. RENONG BERHAD: Hopes to Raise MR400M by December ------------------------------------------------ Renong Bhd expects to sell 400 million ringgit ($105 million) of new stock by December to keep it afloat, Bloomberg reported Friday. "We're trying our best" to implement the sale by December, Renong vice chairman Abdul Wahid Omar said. The move is an immediate measure while the company formulates a long-term plan to turn around the business. Renong Bhd also tumbled 11 sen, or 18 percent, to 50 sen last Thursday morning after it said it would sell 400 million ringgit ($105 million) of new shares to keep its capital from being wiped out. Renong is selling assets to help pare debt as part of a plan to dismantle an empire of 13 public companies built around the company by tycoon Halim Saad. Renong, which suffered losses in the three months to June, said if it continues to incur losses there is a significant risk that the group's shareholders' funds will be in deficit in the near future. SUNWAY HOLDINGS: Shareholders Give Nod on Proposals --------------------------------------------------- Aseambankers Malaysia Berhad, on behalf of the Board of Directors of Sunway Holdings Incorporated Berhad, is pleased to announce that the shareholders of the Company had at the Extraordinary General Meeting held on 3 October 2002 approved the ordinary resolutions in relation to the Proposals. The Proposals include: * Proposed termination of the existing Employees' Share Option Scheme (ESOS) of a duration of five years from 23 December 1999 to 22 December 2004; * Proposed establishment of new ESOS 2002/2012; * Proposed shareholders' mandate pursuant to paragraph 10.09(1) of the Kuala Lumpur Stock Exchange Listing Requirements in relation to provision of financial assistance by Sunway Holdings Incorporated Berhad to Sunway Construction Berhad Group (SunCon) in the form of corporate guarantee to or in favor of another person as security for due performance on the SunCon Group, which is necessary for the SunCon Group to procure a contact or secure work from the public and private sectors. TECHNO ASIA: Continues to Default in Payment -------------------------------------------- Mr. Lim Tian Huat and Mr. Chew Cheng Leong of Messrs. Ernst & Young were appointed Special Administrators (SAs) over TECASIA and a subsidiary company, Prima Moulds Manufacturing Sdn. Bhd. (PMMSB) on 2 February 2001. The Special Administrators were subsequently appointed over the following subsidiary companies of TECASIA on 30 April, 2001: 1. Mount Austin Properties Sdn. Bhd.; 2. Cempaka Sepakat Sdn. Bhd.; 3. Ganda Edible Oils Sdn. Bhd.; 4. Litang Plantations Sdn. Bhd.; 5. Wisma Dindings Sdn. Bhd.; 6. Ganda Plantations (Perak) Sdn. Bhd.; and 7. Techno Asia Venture Capital Sdn. Bhd. Pursuant to the announcement dated 5 September, 2002 in respect of Practice Note 1/2001, TECASIA wishes to announce that the Company and its subsidiaries, namely Mount Austin Properties Sdn. Bhd (Special Administrators Appointed), PMMSB (Special Administrators Appointed), Prima Moulds Sdn. Bhd. and Ganda Energy Holdings, Inc continue to default in payments of their loan interest and principal sums owing to several financial institutions. The outstanding amounts as at 31 August 2002 were: Loan & Hire Purchase Total Principal (RM) Interest (RM) (RM) The Company 464,999,719 285,273,013 750,272,732 The Group 561,390,642 329,563,577 890,954,219 Measures Taken to Address the Default TECASIA is considered as an "affected listed issuer" pursuant to PN4/2001. Further to the measures undertaken as announced on 5 September 2002, there has been no major changes to the status of TECASIA's plan to regularise its financial position. Implications in respect of the Default in Payments TECASIA wishes to announce that Pengurusan Danaharta Nasional Berhad had on 30 January, 2002 and 26 April, 2002 granted an extension of twelve (12) months to the moratorium previously in effect for TECASIA and PMMSB and seven other subsidiaries pursuant to Section 41(3). The said extension will expire on 2 February 2003 and 30 April 2003 respectively. All legal actions initiated against TECASIA and other affected subsidiaries will be stayed and any petition for winding-up, or any appointment of a receiver, receiver and manager or provisional liquidator cannot proceed during the moratorium period. TECHNO ASIA: Ganda Plantations Unit Faces Winding-up Petition ------------------------------------------------------------- The Special Administrators of Techno Asia Holdings Berhad said that a winding-up petition obtained by Central Mercantile Corporation (M) Sdn. Bhd. (CMCSB) has been served on Ganda Plantations Sdn. Bhd. (GPSB) on 30 September 2002. The winding-up petition was obtained by CMCSB subsequent to a judgment entered against GPSB on 29 November, 2001 in the High Court at Kuala Lumpur. The amount claimed is RM1.75 million, together with interest accrued at the rate of 8% per annum. GPSB is contesting this claim and will be represented by its solicitors at the hearing fixed on 15 November 2002 at the High Court in Johor Bahru. GPSB is a 79.45 percent owned subsidiary company of Techno Asia. TECHNOLOGY RESOURCES: Directors Will Not Get Preference Shares -------------------------------------------------------------- Technology Resources Industries Bhd will not proceed with the issue of two redeemable preference shares to two directors as proposed earlier in its restructuring scheme, AFX Asia reports. The statement did not name the directors that would have received the preference shares. The company said that the issue and redemption of the preference shares was to facilitate TRI's implementation of its internal restructuring exercise but this is no longer necessary. TRI also expects to complete the transfer of the listing status of its shares to unit Celcom Bhd, which is the final stage of its restructuring scheme, in the middle of this month. TENAGA NASIONAL: S&P Affirms BBB Rating --------------------------------------- Standard & Poor's Ratings Services said Thursday it affirmed its triple-'B' counterparty credit ratings on Tenaga Nasional Bhd., Malaysia's largest power company. The outlook is stable. "The rating benefits from the company's policy support from the Malaysian government, which owns 70 percent of Tenaga, despite the lack of base rate tariff increases to support Tenaga's weakened financial profile," Standard & Poor's credit analyst Erly Witoyo said. "As a key player in the Malaysian economy as the sole transmitter and distributor of electricity and the main electricity generator, Standard & Poor's would expect the government and the regulator to support the company during any operational or financial crisis", he said. Tenaga's new management team is actively restructuring debt, which is expected to reduce interest costs and foreign exchange risk, and extend debt maturities. Although proceeds from asset sales should reduce debt over time, overall debt might increase to finance future generation, distribution, and transmissions expansion, S&P said. The signing of additional power purchase agreements is expected to burden the company's financial profile even more, it added. Tenaga has a cash balance of Malaysian ringgit (RM) 967 million (US$255 million) and unutilized credit facilities of RM2.4 billion as of June 30, 2002. These resources should be sufficient to address near-term debt repayments of RM1.1 billion. Debts maturing over the next four years total about RM7.7 billion. Tenaga should be able repay these from internal cash flows and from the divestment of its Kapar Power plant and minority shares in various Malaysian independent power producers. TENAGA NASIONAL: Cutting Foreign Currency Debt to 20% ----------------------------------------------------- Tenaga Nasional Bhd. has set a five-year target to reduce its foreign currency debt exposure to 20 percent of total debt from 52 percent, the Sun daily reports. According to Chairman Jamaludin Mohd Jarjis, Tenaga Nasional has started focusing more on raising funds in the local bond market and from domestic bank borrowings. As of May 31, Tenaga's total foreign currency debt exposure amounted to MYR14.76 billion. TIME ENGINEERING: Lower on Fears of Getting PN4 Classification -------------------------------------------------------------- Time Engineering Bhd was down 0.075 ringgit at 0.74, on volume of 702,000 shares, on concerns that it may be at risk of being classified by the Kuala Lumpur Stock Exchange (KLSE) as a PN4 or financially weak company. A dealer said that with parent Renong Bhd facing the risk of being placed under PN4, all units within the group became suspect. "Investors would rather cash out than to hold on to stocks that are placed under PN4. This is because most PN4 counters fetch very low prices," the dealer said. WING TIEK: SC Receives Restructuring Scheme Proposal ---------------------------------------------------- Further to the announcement made by the Board of Directors of Wing Tiek Holdings Berhad (WTHB) on 1 October 2002, the Board said that the Company's adviser, RHB Sakura Merchant Bankers Berhad, has on 2 October 2002 submitted the Proposed Corporate and Debt Restructuring Scheme to the Securities Commission for their approval. As reported in the TCR-AP in September, the proposed corporate and debt restructuring scheme involve: (i) A proposed scheme of arrangement between WTHB, its shareholders and JAKS Resources Sdn Bhd (which will later be converted to a public company) under Section 176 of the Companies Act, 1965 whereby the entire issued and paid-up share capital of WTHB will be exchanged with a total of approximately 8.5 million new ordinary shares of RM1.00 each in JAKS Resources on the basis of 1 new JAKS Resources Share for every 8 ordinary shares of RM1.00 each in WTHB held on a date to be determined; (ii) JAKS Resources to carry out the following proposed acquisitions: (a) The proposed acquisition by JAKS Resources from WTHB of 9 pieces of freehold land (WTHB Land) for a total purchase consideration of RM75.0 million to be satisfied by the issuance of 40.0 million new JAKS Resources Shares at par and RM35.0 million nominal value of Redeemable Convertible Secured Loan Stocks-B 2003/2010 (RCSLS-B) at 100% of its nominal value (Proposed WTHB Land Acquisition); (b) The proposed acquisition by JAKS Resources from Dato' Hj Jamian bin Mohamad, Ang Ken Seng and Ang Lam Poah (collectively referred to as the JAKS Vendors) of 2,000,000 ordinary shares of RM1.00 each in JAKS Sdn Bhd (JAKS Shares) representing the entire equity interest in JAKS, for a purchase consideration of approximately RM208.0 million to be satisfied by the issuance of approximately 208.0 million new JAKS Resources Shares at par (Proposed JAKS Acquisition); (c) The proposed acquisition by JAKS Resources from Ang Ken Seng and Ang Lam Poah (collectively referred to as the PTS Vendors) of 700,000 ordinary shares of RM1.00 each in Pipe Technology System Sdn Bhd (PTS) (PTS Shares) representing 70.00% equity interest in PTS, for a purchase consideration of approximately RM12.0 million to be satisfied by the issuance of approximately 12.0 million new JAKS Resources Shares issued at par (Proposed PTS Acquisition); (d) The proposed acquisition by JAKS Resources from WTHB of 45,912,738 ordinary shares of RM1.00 each in Wing Tiek Steel Pipe Sdn Bhd (WTSP) (WTSP Shares) representing approximately 98.05% equity interest in WTSP for a cash consideration of RM1.00 (Proposed WTSP Acquisition); (Collectively, the Proposed WTHB Land Acquisition, the Proposed JAKS Acquisition, the Proposed PTS Acquisition and the Proposed WTSP Acquisition shall hereafter be referred to as the Proposed Acquisitions) (iii) The proposed settlement and compromise repayment of the debts owing by WTHB and its subsidiary companies namely, Wing Tiek Metal Industries Sdn Bhd (WTMI), Wing Tiek Ductile Iron Pipe Sdn Bhd (WTDIP), Wing Bee Hardware Sdn Bhd (WBH) and Victory Skyline Sdn Bhd (VS) and WTSP to certain creditors (Scheme Creditors) with the following: (a) the RM60.0 million nominal value of Redeemable Convertible Secured Loan Stocks-A 2003/2010 ("RCSLS-A") to be issued at 100% its nominal value by JAKS Resources; (b) the 40.0 million new JAKS Resources Shares to be received by WTHB pursuant to the Proposed WTHB Land Acquisition; (c) the RM35.0 million nominal value of Redeemable Convertible Secured Loan Stocks-B 2003/2010 (RCSLS-B) to be received by WTHB pursuant to the Proposed WTHB Land Acquisition; and (d) a further 35.0 million new JAKS Resources Shares to be issued by JAKS Resources to WTHB at par. (Collectively referred to as the "Proposed Debt Restructuring Scheme"); and (iv) The proposed transfer of WTHB's listing status on the Main Board of the Kuala Lumpur Stock Exchange (KLSE) to JAKS Resources (Proposed Transfer of Listing Status). WTHB was incorporated in Malaysia under the Act on 30 June 1975 nder the name of Wing Tiek Hardware Sdn Bhd. It changed its name to Wing Tiek Holdings Sdn Bhd on 21 December 1988. The Company as converted into a public company and assumed its current name on 20 February 1989. On 18 January 1990, WTHB was listed on the Main Board of the KLSE. WTHB is principally involved in investment holding, hardware dealer, general merchants and civil contractor. As at 31 July 2002, the authorized share capital of WTHB is RM100,000,000 comprising 100,000,000 WTHB Shares of which 68,081,700 WTHB Shares have been issued and fully paid-up. The Directors of WTHB as at 31 July 2002 comprise Datuk Nordin Bin Salleh, Mohamed Bin Musa, Poh Liong Ban and Dr Ramanathan A/L Kulanthaivelan, none of whom holds any direct or indirect interest in WTHB. ===================== P H I L I P P I N E S ===================== DMCI HOLDINGS: Announces Shares' Delisting ------------------------------------------ DMCI Holdings, with reference to the Circular for Brokers no. 2336-2002 dated September 4, 2002, through SEC Form17-C dated October 2, 2002, disclosed that: "Of the total preferred shares issued, below is the remaining balance after taking into account the following: 2,400,000 Total number of preferred shares issued by Compnay (596,895) Shares held as of April 5, 2002 (711,524) Shares redeemed for the period of April 9-September 30, 2002 (52,720 April 9-30) (73,050 May 1-31) (5,320 June 1-30) (1,390 July 1-31) (5,350 August 1-31) (573,694 September 1-30) (145,391) Acquires by D.M. Consunji, Inc. (376,020) Redemption as agreed with the shareholders (8,830-redeemed June 2) (8,830-rdeemed July 2) (8,830-redeemed July 2) (8,830-redeemed August 15) (200,000-redeemed August 19) (108,700-redeemed August 22) (32,000-redeemed September 2) 570,170 Remaining number of oustanding preferred shares" In view thereof, a total of 573,694 preferred shares redeemed for the month of September should be delisted from the official registry of the Exchange effective Friday, October 4, 2002. This brings the number of the Company's outstanding preferred shares to 570,170. The designated stock and transfer agent is hereby authorized to cancel in its books the above number of preferred shares. TCR-AP reported in April that DMCI Holdings Inc. has warned it will not be able to wholly redeem or buy back the P2.4 billion (US$46.98 million) convertible preferred shares it issued in April five years ago due to financial constraints, citing DMCI Chief Finance Officer Herbert M. Consuji. The disclosure can be accessed at http://bankrupt.com/misc/tcrap_dmci1004.pdf INTERNATIONAL CONTAINER: Denies Charges of Double Payments ---------------------------------------------------------- International Container Terminal Services, Inc. (ICTSI) has denied charges of double payments at the Manila International Container Terminal (MICT), following a report in the Manila Bulletin last September 30. Felipe C. Pacheco, MICT terminal manager, explained that ICTSI charges its clients for the use of MICT facilities and equipment. These clients include shipping lines, cargo consolidators and logistics providers. In turn, MICT's clients charge their respective clients for services they render. Shipping line and cargo consolidator clients include importers, exporters and cargo consignees. ICTSI operates the MICT. Pacheco made this statement after Felix Romano, president of the Visayas-Mindano Customs Brokerage, Inc., accused the Philippine Ports Authority (PPA), ICTSI and Cargo Systems, Inc. (CSI) of an "unholy alliance." CSI is a cargo consolidator and a subsidiary of Orient Overseas Container Lines. Pacheco explained that ICTSI strictly adheres to a tariff schedule approved and regulated by the PPA: "The tariff is very specific, leaving no room for double charging." He, however added, that ICTSI has no control over the charges made by shipping lines and cargo consolidators to their importer- exporter clients: "What the cargo consolidator charges are their own service fees." According to Pacheco, CSI is one of five cargo consolidators operating at the MICT Container Freight Station (CFS): "The CFS facilities are servicing the shipping lines and cargo consolidators. What the shipping lines and cargo consolidators pay ICTSI is use of space, equipment and personnel" Pacheco said that this was not the first time that ICTSI has received complaints on exorbitant charging by cargo consolidators: "In fact, we have expelled a cargo consolidator who charged overpriced processing fees." Use of CFS facilities is among the services provided by ICTSI for its shipping line and cargo consolidator clients. In this case, CSI uses several bays and equipment at the MICT CFS and employs ICTSI personnel. Aside from CSI, other cargo consolidators at the MICT CFS are APL Logistics, Maersk Logistics, Expeditors and Orient Freight. Port user groups, the Port Users Confederation (PUC) and CY/CFS- OCZ Operators Assocation (ACOP) monitor charges made by cargo consolidators to protect the interests and concerns of the import-export sector. Last September 2001, the Bureau of Customs issued an order promulgating the issuance of uniform rates being charged by cargo consolidators as endorsed by PUC and ACOP. According to Edward I. Altman's Z-Score model, this company's Z- Score was -0.08. Normally, when a company has a Z-Score of below 1.81, this is an indication that there are problems with the company. Conversely, a Z-Score of above 3.0 indicates that the firm is healthy. At the end of 2001, International Container Terminal Service - http://www.ictsi.com/- had negative working capital, as current liabilities were 7.65 billion Philippine Pesos while total current assets were only 5.88 billion Philippine Pesos. PHILIPPINE TELEGRAPH: Digital Telecom Ignores NTC Order ------------------------------------------------------- Philippine Telegraph and Telephone Corp said Digital Telecommunications Philippines Inc. (Digitel) is ignoring an order from the National Telecommunications Commission to unblock interconnection between them, AFX Asia reported Thursday. Digitel earlier said it cut interconnection links with PT&T due to the latter's failure to pay access charges. "PT&T... awaits further action by the NTC while (preparing) to immediately remit to Digitel the first of the committed 2 million pesos monthly payments," PT&T said. PT&T said NTC had asked Digitel on Sept 5 to unblock the interconnection link within one week from that day and that PT&T must settle initially its "indisputed obligations" to Digitel by paying 2 mln pesos per month. However, Digitel on September 10 added a new precondition to the traffic settlement issue, PT&T said. PILIPINO TELEPHONE: Tops Biggest Money Losing Firm in 2001 ---------------------------------------------------------- Ailing Pilipino Telephone Corp. (Piltel) ended up as the country's top biggest money-losing firm in 2001, Business World reported Friday, citing the Securities and Exchange Commission. Piltel's losses for 2001 represented a 321 percent increase from a loss of PhP5.15 billion in 2000, due to higher marketing and promotion expenses, increased depreciation charges and extraordinary charges. Exceptional charges include a PhP14-billion write-down of Piltel's old cellular phone networks and write-off of PhP386 million of computer software and paging network assets. Piltel is a unit of Philippine Long Distance Telephone Co. (PLDT). The top 5,000 corporate reports is a joint venture of the SEC and credit ratings agency Credit Information Bureau, Inc. DebtTraders reports that Pilipino Telephone Corp's 3.030% floating rate note due in 2016 (PLTL16PHS1) trades between 35 and 38. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=PLTL16PHS1 METRO PACIFIC: Ranks Second Biggest Money Losing Firm in 2001 ------------------------------------------------------------- Metro Pacific Corporation ranks the second biggest money-losing firm in the Philippines in the year 2001, versus a profit of P2.77 billion a year earlier, according to the Business World, citing the Securities and Exchange Commission. The losses were due to the company's asset impairment provisioning of PhP19.2 billion for its investment in Fort Bonifacio Global City and shipping firm Negros Navigation Co. ================= S I N G A P O R E ================= ADVANCED SYSTEM: Issues Profit Warning -------------------------------------- The Board of Directors of Advanced System Automation Limited advises that due to the prolonged slowdown of the semiconductor industry, the sales turnover of the Group for the half-year ended 30 September 2002 has declined substantially compared to that of same period last year. Besides the slowdown, the Board has also recommended prudent measures to provide for write-offs on some obsolete equipment, R&D knowhow and inventories. As a result, loss for the half-year ended 30 September 2002 will be significant. On the other hand, the Board also noted that the performance of second quarter was much better than that of first quarter. Compared to first quarter, sales turnover of second quarter had grown by more than 200 percent and its Operating Loss reduced by 20 percent approximately. ASTI HOLDINGS: Pessimistic Concerning Current Year's Results ------------------------------------------------------------ Further to its announcement of its half-year results on 27 September 2002, ASTI Holdings Ltd elaborates further on its prospects for the current year. In its announcement of its full year results on 22 March 2002, the Group stated that it expected performance to improve in the current year. The Group no longer expects its performance to improve in the current year as compared to last year due to the following reasons: 1. The semiconductor industry previously anticipated a recovery in 2002, but this has not materialized. The mid-year consensus forecast for Chip Equipment Industry in July 2002 projected capital equipment sales to decline 19% this year compared to Year 2001. As a result of the continued downturn, capital equipment spending had not increased as expected. 2. The semiconductor industry is likely to remain depressed for the rest of the year, and it is uncertain when a sustainable recovery will occur. AUSSINO GROUP: Striking-off Dormant Unit ---------------------------------------- The Board of Directors of Aussino Group Limited announced the Company's wholly own subsidiary, Isitana Fashion Creations Pte Ltd, a dormant company, has applied to the Registrar of Companies to be struck off from the Register pursuant to Section 344 of the Companies Act, Cap.50. The Registrar of Companies has accepted the application. The striking off of the abovementioned subsidiary does not have any material effect on the earnings per share and net tangible assets of the Company. CHARTERED SEMICONDUCTOR: Shanmugam Buys 27,000 Shares ----------------------------------------------------- K Shanmugam, the Director of Sembcorp Industries, has bought 27,000 shares of Chartered Semiconductor Manufacturing Limited at $0.975 per share. With his latest purchase, Shanmugam now owns 180,000 Chartered shares. According to TCR-AP, Chartered Semiconductor Manufacturing Ltd announced that it has dispatched a prospectus dated 14 September 2002 (Prospectus) to holders of its American Depositary Shares (ADSs) as of 17 September 2002 (Entitled ADS Holders) and to holders of its ordinary shares with a registered address in Singapore, the United States and Malaysia as of 18 September 2002 (Entitled Shareholders), together with the related subscription and other documents. MEDIARING.COM: Names New Board Director --------------------------------------- MediaRing.com has appointed Eileen Tay-Tan Bee Kiew to the Company's Board of Directors. Eileen Tay-Tan Bee Kiew has recently retired as a Partner in KPMG, the Public Accounting Firm. She joined KPMG as a Partner on 2.1.1991. Tay has been in the public accounting field for more than 25 years. Her key areas of experience include Audit and Tax. According to TCR-AP, Mediaring.com Ltd revealed a net loss of S$34.568 million versus a loss of S$55.955 million the previous year. In January, Media Ring announced a corporate restructuring and a 35 percent reduction in its worldwide workforce and operations as the Company moves to focus on its higher growth telecommunications products and services. =============== T H A I L A N D =============== RAIMON LAND: Enters Into Connected Transactions ----------------------------------------------- The Board of Directors' Meeting No. 28/2545 of Raimon Land Planner Co., Ltd. (acting in the capacity of the Plan Administrator of Raimon Land Public Company Limited) held on 3rd October, 2002 have resolved to approve that Raimon Land Public Company Limited enters into the connected transactions as follows: To purchase 286,544 shares in Strategic Property Co., Ltd. from Seamico Securities Public Company Limited at the approximated price of Bt5.75 each share, totaling Bt1,650,000. Seamico Securities Public Company Limited, is a shareholder of Raimon Land Public Company Limited, which holds 27.98 percent of the total issued shares in Raimon Land Public Company Limited. Mr. Nigel John Cornick, an authorized director of Raimon Land Planner Company Limited, (acting in the capacity of the plan administrator of the Company) is authorized to negotiate, agree and execute all agreements relating to the connected transactions on behalf of the Company. The entry into the above transactions would be regarded as connected transactions under the SET's regulation regarding rules, procedures and disclosure of connected transactions of listed companies and would not be exempted under clause 8 of the SET's regulations. The Bangkok-based real estate developer is, therefore, required to prepare a report and disclose information in this regard. SIKARIN PLC: Appoints New Audit Committee Member ------------------------------------------------ At the board meeting on 2 October 2002, Mr. Kittipan Sasanawin has resigned from being audit committee and the board appointed Mr. Kraiwut Sirinupong to be audit committee to replace the resigned one, effective 2 October 2002. The members of audit committee will consider appointing the chairman of the audit committee and then reports to the Stock Exchange of Thailand. Bangkok-based Sikarin, which is under rehabilitation, is in the hospital business. UNITED COMMUNICATION: TRIS Cancels Debentures Ratings ----------------------------------------------------- Thailand's TRIS Rating Co. has cancelled the company rating of United Communication Industry PLC (UCOM) and the rating of its 2,282 million baht senior debentures. The cancellations came at the request of the company, because UCOM's debentures have been prepaid since 17 September 2002. Therefore, TRIS Rating will no longer monitor UCOM's company and issue ratings, and the ratings assigned previously cannot be used as references. TRIS Rating on 12 February 2002 assigned UCOM and issue ratings at BBB-. 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. 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