/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/021015.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, October 15, 2002, Vol. 5, No. 204 Headlines A U S T R A L I A AUSTRIM NYLEX: Divests Textiles Site BALLARAT GOLDFIELDS: ASIC Stops Fundraising Efforts COLES MYER: Board Meeting Ends With No Decisions COLES MYER: Board Tipped to Block Director Lew COLES MYER: Director Lew Promises Changes If Reelected COLES MYER: NZ Unit Gets Fine for Selling Unsafe Bicycle TEN NETWORK: Broadcaster Posts A$108.6M Loss C H I N A & H O N G K O N G BENEFUN INTERNATIONAL: Net Loss Widens to Over HK$38M EURO-ASIA AGRICULTURAL: Creditors Seek HK$60M Loan Repayment GOOD SOURCE HOLDINGS: Hearing of Winding Up Petition Set GREAT WALL CYBERTECH: Net Loss Widens to HK$959M HOLY SHIPPING LIMITED: Facing Winding Up Petition IMA SYSTEM: Winding Up Petition Pending INTERACTIVE AUDIENCE: Winding Up Petition Set for Month-end I N D O N E S I A ASTRA INTERNATIONAL: Astra Sedaya Issues IDR300B Bonds J A P A N AMADA CO.: Sees Deeper Net Loss of Y6B ASAHI MUTUAL: Cuts Stock Holdings by Y200B in the First-Half FURUKAWA ELECTRIC: JCR Downgrades Rating to J-2 MITSUBISHI CORPORATION: Applies for Additional Shares' Listing NIPPON SHEET: Widens First-half Net Loss to Y1.5B NIPPON TELEGRAPH: Phone Units Admit Service Error, Issue Refunds NTT DOCOMO: Executive Salary Cuts Likely OKI ELECTRIC: Cutting 500 More Jobs SHOWA DENKO: Dissolving Polychloroprene JVs With Dupont SUMITOMO METAL: Will Ask Nippon Steel for Capital Injection K O R E A DAEWOO MOTOR: SAIC Pays $59.7M for 10% Stake HANBO STEEL: Finalizing Takeover Deal This Week HYUNDAI MERCHANT: Facing Liquidity Shortage SEOUL BANK: Trimming 519 Jobs Ahead of Hana Bank Merger M A L A Y S I A ABRAR CORPORATION: Still in Payment Default KEMAYAN CORPORATION: Provides Update on Foreign Shareholdings KSU HOLDINGS: Defaults in RM33.46M Payment NCK CORPORATION: Moratorium Period Extended to October '03 RENONG BERHAD: FIIB Accepts Offer Price of US$17 Per Share RENONG BERHAD: Shares Up Slightly After Share Issue Reports ROAD BUILDER: Selling Agricultural Land for RM215.86M SPORTMA CORPORATION: FIC Okays Amendments to Debt Rehab Scheme WEMBLEY INDUSTRIES: Seeks Extension of Time to Month-end WIJAYA BARU: Striking-Off Dormant Subsidiary P H I L I P P I N E S DIGITAL TELECOM: To Launch Mobile Operations on November 15 MULTITEL HOLDINGS: SEC Rejects Request to Withhold Probe MULTITEL INTERNATIONAL: SEC Denies Seizing Cash During Raid NATIONAL POWER: Debt Transfer Deadline Set NATIONAL POWER: ERC Decides Petition on Pricing Incentive PHILIPPINE LONG: First Pac Aims to Cut Stake's Sale Price PHILIPPINE SEVEN: Sees FY Net Loss, Slows Openings S I N G A P O R E BONVESTS HOLDINGS: Reports Voluntary Winding Up of Dormant Unit CHARTERED SEMICON: May Cut Jobs to Reduce Cost CHARTERED SEMICON: Posts Notice of Change in Interest CHARTERED SEMICON: Says Half of Directors Take Up Rights T H A I L A N D ITALIAN-THAI DEVELOPMENT: Hopes to Get THB20B in New Projects KRUNG THAI: Card Unit to Price IPO at THB19 a Share TOTAL ACCESS: Selling Up to $114M Bonds for Debt Refinancing PRASIT PATANA: Rehab Plan Implementation Progressing SIKARIN PLC: Two Directors Step Down From Board - - - - - - - - ================= A U S T R A L I A ================= AUSTRIM NYLEX: Divests Textiles Site ------------------------------------ Austrim Nylex Limited has sold the former Austrim Textiles site at Thomastown in Melbourne. "Following the Company's exit from the textiles industry earlier this year, the Thomastown site was a surplus asset," Austrim Nylex Limited Managing Director and Chief Executive Peter Crowley said. Sale proceeds of $5.08 million will be used to reduce bank debt. The reduction of Austrim Nylex Limited's unacceptably high borrowings remains the key focus for management and will be achieved through further asset sales, tighter cash flow management and focusing on improving business performance. For further information, call Tim Allerton of City Public Relationswa at telephone (02) 9281 7272, or Peter Crowley, Austrim Nylex Managing Director and CEO at telephone (03) 9529 2999. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 203, October 14, 2002) BALLARAT GOLDFIELDS: ASIC Stops Fundraising Efforts --------------------------------------------------- The Australian Securities and Investments Commission (ASIC) said Thursday it has acted to protect investors by placing interim stop orders on the fundraising documents of Ballarat Goldfields NL, as a result of insufficient disclosure. The publicly-listed gold exploration company has subsequently lodged either a supplementary or replacement prospectus which addresses ASIC's concerns. Ballarat Goldfields lodged a prospectus on 20 August 2002 seeking to raise a minimum of about $6.377 million by way of rights and public issue, for the purpose of settling debt, funding the recommencement of geological exploration on its' gold properties, and funding mine maintenance and corporate overheads while the geological program is being conducted. Shares in Ballarat Goldfields have been suspended from trading on the Australian Stock Exchange (ASX) since 24 October 2001. At that time ASIC made an order effectively suspending the company's ability to issue a short form prospectus (a simpler version of a prospectus which requires a lesser degree of disclosure) for continuously quoted securities, for one year. ASIC issued an interim stop order on the full prospectus, issued 20 August 2002, on 9 September 2002. ASIC had concerns that the expert's report in the prospectus, which the expert claimed to have been prepared in accordance with the mining industry's VALMIN Code, did not comply with the Code in several areas, and was potentially misleading. ASIC also considered that a table and statements, which provided gold content estimates of target zones, had no reasonable basis and were potentially misleading. ASIC revoked the interim stop order on 19 September 2002, after Ballarat Goldfields lodged a supplementary prospectus correcting the misleading statements and data. COLES MYER: Board Meeting Ends With No Decisions ------------------------------------------------ Coles Myer Ltd's board meeting, organized to finalize a notice of meeting for shareholders, was adjourned Monday with no decisions made on critical issues concerning board composition, Dow Jones Newswires reported. According to dissident director Solomon Lew, no business was discussed yesterday. Three of the retail company's 10 board members were away. Lew said he does not know when a new meeting will be rescheduled. COLES MYER: Board Tipped to Block Director Lew ---------------------------------------------- Majority of the divided Coles Myer board was expected to formally oppose Solomon Lew's re-election at its board meeting yesterday. The Australian Shareholder Association's Stan Mather says Mr Lew's mixed track record with Coles Myer remains an obstacle to his re-election. "One of the problems that Mr Lew does have is that over a long period of time, he has been associated with poor results for Coles Myer, and last year against the re-election of retiring directors because they had been associated with poor results," Mr Mather said. "Other things being equal, we will probably vote against Mr Lew on the same basis if he retires this year." COLES MYER: Director Lew Promises Changes If Reelected ------------------------------------------------------ Dissident Coles Myer Ltd. director Solomon Lew said Sunday he would cut links with businesses that sell goods to the Melbourne-based retailer if he wins reelection at the annual meeting scheduled on November 20, Dow Jones Newswires reported. "I am announcing today, that before the annual general meeting, I will sign a binding pledge that when I am reelected, I will sever all links with companies that sell goods to Coles Myer," he said. "This will mean there will no longer be any supplier links to the company after the end of the financial year." The move leaves Mr Lew's opposition with less ammunition in the campaign to overthrow him. Lew also said he proposes to reintroduce a shareholder discount card that was scrapped recently due to cost concerns. Lew, who is the largest single shareholder in the nation's biggest retailer with a stake of about 6 percent, also said he should remain in Coles Myer's board as he is the only one with retail experience. COLES MYER: NZ Unit Gets Fine for Selling Unsafe Bicycle -------------------------------------------------------- Australia's Coles Myer Ltd. faces a further blow with its discount retailer unit, K-Mart New Zealand, facing a fine of NZ$5,000 plus court costs for selling an unsafe bicycle, Dow Jones Newswires reports. A customer has filed a complaint concerning a "Huffy Kaibab" men's bicycle, which had a faulty left pedal crank arm that became loose and fell off after just a few minutes of riding. The Commerce Commission said Monday it is the second time the business has appeared in court for failing to comply with bicycle safety regulations. TEN NETWORK: Broadcaster Posts A$108.6M Loss -------------------------------------------- Australian broadcaster Ten Network Holdings posted a hefty 2001- 02 loss last week after further writedowns in the value of its ailing outdoor advertising arm offset strong television earnings, the South China Morning Post reported. Ten, which owns Australia's third-largest TV network, said its net loss for the year to August was A$108.6M after a weak advertising market eroded the value of its Eye Corp billboard business. However, it was the only Australian commercial network to significantly increase TV revenues in the past year after its youth-orientated programming push robbed market share from rivals Seven Network and Publishing & Broadcasting's Nine. "We will be the only network showing growth going into next year's negotiations," Ten's TV chief John McAlpine said. ================================ C H I N A & H O N G K O N G ================================ BENEFUN INTERNATIONAL: Net Loss Widens to Over HK$38M ----------------------------------------------------- Benefun International Holdings Ltd, the Hong Kong-based retailer and manufacturer of casual wear, said the its year to June net loss widened to HK$38.856 million from a loss of HK$26.15 million a year earlier. It said operating loss came in at HK$36.605 million, against a loss of HK$22.892 million the previous year. The company has not paid interim dividends during the period. EURO-ASIA AGRICULTURAL: Creditors Seek HK$60M Loan Repayment ------------------------------------------------------------ Creditor banks of embattled orchid grower Euro-Asia Agricultural (Holdings) are seeking repayment of HK$60 million in loans in the wake of chairman Yang Bin's arrest for alleged illegal business activities, the South China Morning Post reported. Hamburgische Landesbank on Tuesday gave the Shenyang-based firm 8 days to repay a HK$30 million lending facility, while Chiyu Banking Corporation is negotiating to arrange a repayment schedule for credit of HK$30 million. Revealing a boardroom in disarray, the firm said in a statement late last night it had had "difficulty" contacting five of its directors, including Mr. Yang, and could not confirm whether Euro-Asia was implicated in the illegal activities cited by the Foreign Ministry. Euro-Asia has appointed deputy chief executive Professor Gu Zhuping as acting chief executive directors with immediate effect. The firm said it had refused resignations from two executive director, chief executive Li Gang and vice president of general administration Liu Gui Fen. Both quit last Tuesday but the board said both had director's obligations and were required to serve notice periods under their employment contracts. GOOD SOURCE HOLDINGS: Hearing of Winding Up Petition Set -------------------------------------------------------- The petition to wind up Good Source Holdings Limited is set for hearing before the High Court of Hong Kong on November 6, 2002, at 9:30 am. Lau Kai Hoi of Room 518, Block E, Lok Kwan House, Lok Man Sun Chuen, To Kwa Wan, Kowloon, Hong Kong filed the petition with the said court last August 12, 2002. GREAT WALL CYBERTECH: Net Loss Widens to HK$959M ------------------------------------------------ Great Wall Cybertech Ltd said that its year to March net loss widened to HK$959.225 million from a loss of HK$171.091 million a year earlier. Its pretax loss widened to HK$1.010 billion from HK$168.818 million. No figure for the operating result was provided. The company earlier said it had to delay the announcement of its results as it needed more time to obtain information on Qingyuan Rowa Electronics Co Ltd and the company's principal subsidiary, Guangdong Rowa Air-conditioner Co Ltd. Great Wall Cybertech is a Hong Kong-based manufacturer and distributor of consumer electronic products including television products, audio products, plastic products, moulds and printed circuit boards. HOLY SHIPPING LIMITED: Facing Winding Up Petition ------------------------------------------------- Wing On Metal Company Limited, whose registered office is situated at Ground Floor, 181 Reclamation Street, Yaumatei, Kowloon, Hong Kong is seeking for the winding up of Holy Shipping Limited. The petition was filed last September 4, 2002 at the High Court of Hong Kong, and will be heard before the said court on November 13, 2002 at 10:30 a.m. IMA SYSTEM: Winding Up Petition Pending --------------------------------------- The petition to wind up Ima System Consultants Limited is scheduled before the High Court of Hong Kong on October 16, 2002 at 10:00 am. Che Tak Cheung, whose office is situated at Room 1309, Block 8, Kwai Ching Estate, Kwai Shing, New Territories, Hong Kong, filed the petition with the said court last July 30, 2002. INTERACTIVE AUDIENCE: Winding Up Petition Set for Month-end ----------------------------------------------------------- Interactive Audience Measurement Asia 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. Choi Sau Yeung Chris of Flat A, 12th Floor, Block 10, Site 11, Whampoa Garden, Hung Hom, Kowloon, Hong Kong filed the petition last August 1, 2002. ================= I N D O N E S I A ================= ASTRA INTERNATIONAL: Astra Sedaya Issues IDR300B Bonds ------------------------------------------------------ PT Astra Sedaya, a joint venture between PT Astra International and GE Capital, will issue IDR300 billion in bonds next year, Bisnis Indonesia reported, citing operations director Hendra Sugiharto. The bonds will replace medium-term notes maturing in the first quarter. The car financier targets new loans totaling IDR4.0 trillion this year, up from 3.4 trillion last year. As of August, it had provided 2.4 trillion rupiah in credit. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 203, October 14, 2002) ========= J A P A N ========= AMADA CO.: Sees Deeper Net Loss of Y6B -------------------------------------- Machinery maker Amada Co. is expecting a group net loss of 6 billion yen in the first half ending September 30, due to special losses from its retirement program, Dow Jones reported Friday. The earnings outlook was revised because of sagging domestic demand and weak private capital outlays on new plant and equipment. In addition, around 500, or 12 percent, of its workforce accepted its early retirement offer in August, resulting in a special loss of Y2.4 billion for the first half. The retirement scheme would help reduce its labor expenses by Y1.7 billion a year on a group basis from the coming fiscal year. The Company posted a group net loss of 1.3 billion yen on sales of 87.63 billion yen for the first half ending September 2001. Amada Co Revised Parent Estimate In Millions of Yen PARENT New Forecast Prior For 1H To 9/02 Forecast Sales 40,000 41,000 Pretax profit -2,900 -2,200 Net profit -3,800 -1,800 According to Wright Investor's Service, the Company reported losses of 1.59 per share during the 12-month period ending in March 2002. This implies that the management likely believes that the Company will return to profitability soon. ASAHI MUTUAL: Cuts Stock Holdings by Y200B in the First-Half ------------------------------------------------------------ Struggling life insurer Asahi Mutual Life Insurance Co. slashed its stock holdings by 200 billion yen in the first half ending September 30, as part of its two-year restructuring scheme, Dow Jones reported Friday. At present, the life insurer has shareholdings of around 850 billion yen, down sharply from 1.890 trillion yen in March 2001. The Company announced a series of drastic business reform measures in February including boosting its fund, writing off hefty latent securities losses, cutting staff and focusing on retail business. Because of the recent continued plunge in Tokyo shares, latent losses on Asahi Life's shareholdings ballooned to 210 billion yen as of September 30 from 105.9 billion yen six months ago. Latent share losses stood at 502.2 billion yen a year ago. As the life insurer has actively reduced its stock holdings over the year, the impact on its earnings from stock price fluctuations is much smaller than before, Asahi Life said. Overall latent securities losses totaled 130 billion yen as of September 30, down from 469.3 billion yen a year ago, but up from Y49.5 billion six months ago. Faced with the need to revamp its financial standing and maintain the trust of its policyholders amid the protracted economic and stock market slump, Asahi Life raised 150 billion yen in funds from three major banks in March and another 11 billion yen from 10 other Japanese corporations in August. FURUKAWA ELECTRIC: JCR Downgrades Rating to J-2 ----------------------------------------------- Japan Credit Rating Agency (JCR) has downgraded the rating of the following CP program of Furukawa Electric Company Limited to J-2 from J-1. CP Maximum: Y100 billion Backup Line: 0 percent The earnings of optical fiber cables in communications division are deteriorating sharply. The earnings of optical fiber solution (OFS) business that was acquired from Lucent Technologies Inc. in November 2001 has been lower than the forecast. The revenue from OFS was revised downward to US$300 million from the forecasted amount of US$1,600-1,800 million at the time of acquisition. The Company has already cut the jobs largely. It plans to break even at the operating profit before depreciation for fiscal 2003 and then turn profitable in fiscal 2004, restructuring the operation further. It is estimated that the pretax loss before extraordinary items for fiscal 2002 will increase to 50 billion yen from the originally forecasted 19 billion yen. Furukawa Electric earned 7.6 billion yen pretax profit for fiscal 2001. It would incur loss on write-downs of the goodwill pertaining to the OFS business amounting to 46.2 billion yen. As a result, the net loss would also increase from the originally forecasted amount of 49 billion yen to 115 billion yen. The interest-bearing debt increased to 618.1 billion yen as of end of March 2002 from 360.8 billion yen a year earlier due to acquisition of OFS business. The Company initially planned to finance the acquisition by sell-off of the common stock of JDS Uniphase Corp. and the idle assets. Deterioration in the external environment caused, however, the planned sales to delay. Furukawa Electric became the world's 2nd largest optical fiber Company after Corning Inc. There is much uncertainty about the future performance, however. Although the Company plans to restructure the OFS business further, it is still unclear when the Company can obtain operating profit. Thus, the prospect for recovery of the deteriorated financials is weak. JCR decided to downgrade the rating, accordingly. MITSUBISHI CORPORATION: Applies for Additional Shares' Listing -------------------------------------------------------------- Mitsubishi Corporation has applied for additional listing of 1,567,175,508 shares of common stock to be admitted to the Official List of the Financial Services Authority and London Stock Exchange PLC. Admission of the shares will be granted on October 15, 2002 and that admission and trading will commence on October 16, 2002. In October 2001, the total issued share capital of 1,567,175,508 was re-denominated from Shares of Common Stock Yen50 into Shares of Common Stock with no par value. These shares rank pari passu in all aspects with other existing Shares of Common Stock. According to World'Vest Base, Mitsubishi Corporation as of 2001 has 3.7 trillion yen in current liabilities and fixed assets of 908.14 billion yen. NIPPON SHEET: Widens First-half Net Loss to Y1.5B ------------------------------------------------- Nippon Sheet Glass Co. (NSG) posted a group net loss of 1.5 billion yen in the first half of this year, due to sluggish sales of lenses related to value-added communication electronics devices, Kyodo News reported Friday. The group will report an extraordinary profit of 2.6 billion yen stemming from sales gains of some of its shareholdings. In June, Standard & Poor's lowered its 'pi' rating on Nippon Sheet Glass Co. Ltd. (NSG) to double-'Bpi' from double-'B'-plus- pi based on greater-than expected earnings volatility in NSG's electronics materials business, and weaker prospects for a near- term recovery in the Company's earnings and cash flow protection. The electronics materials business has been significantly hurt by the recent slump in the global IT industry. In particular, its micro lens for optical components, which has good growth potential over the longer term, is currently suffering from weak capital spending in the U.S. telecom sector. NIPPON TELEGRAPH: Phone Units Admit Service Error, Issue Refunds ---------------------------------------------------------------- Nippon Telegraph and Telephone (NTT) units namely NTT East Corporation and NTT West Corporation will refund 14 million yen in phone bills to 1,300 customers due to disabled services for notifying the arrival of e-mails and recorded voice messages, the Kyodo news service reported. The two regional carriers admitted the announcement came two months after they confirmed the malfunctions in early August. The problems with NTT's L-mode Internet-capable fixed line services and the call-waiting services known as Catch Phone 2 and Magic Box - were first discovered during maintenance work in late July. The problems were caused by switchboard programming defects, and fixed the problems by late September. NTT DOCOMO: Executive Salary Cuts Likely ---------------------------------------- NTT DoCoMo Inc., a unit of Nippon Telegraph and Telephone Company (NTT), will cut the salaries of its senior board members by 10-20 percent to take the blame for the recent loses on investments in overseas telecommunication firms, Bloomberg reported Friday. Earlier this month, DoCoMo said it would write down 573 billion yen ($4.6 billion) for the first six months ended September 30 to account for the declining value of its investments in AT&T Wireless Services Inc., KPN Mobile NV and Hutchison 3G HK Holdings Ltd. The write-downs are in addition to the 812.8 billion yen in losses it booked last year after re-evaluating its overseas holdings. Taking responsibility for the first investment losses, President Keiji Tachikawa took a 20 percent cut in salary from April for three months. Senior executive Vice Presidents took 15 percent cut in monthly pay, while other board members took 10 percent pay cuts. OKI ELECTRIC: Cutting 500 More Jobs ----------------------------------- Oki Electric Co Limited will cut additional 500 jobs by March as part of its restructuring scheme, AFX News reports. The report said those losing their jobs in the latest round of cutbacks will be given new jobs at client companies, while the rest of the cuts will be achieved through retirements. President Katsumasa Shinozuka said the Company would restructure group companies to focus on high-growth areas such as broadband infrastructure, in a shift away from shrinking business from large telecoms carriers such as Nippon Telegraph and Telephone Corp. "We do not expect a recovery in the communications sector to their previous levels," Shinozuka said. "NTT is reining in capital spending and the situation for overseas communications companies has changed," he said. "To deal with this situation, we want to implement restructuring and other measures in the second half." The Company aims to sell 16-17 billion yen in assets, such as real estate and shares. Earlier, Oki revised its forecast for the full year to a pretax loss of 8 billion yen from breakeven, due to sales and profit declines on the weak performance of its network related products, as well as the rising yen. SHOWA DENKO: Dissolving Polychloroprene JVs With Dupont ------------------------------------------------------- DuPont Dow Elastomers L.L.C. and Showa Denko K.K. (SDK) will dissolve their manufacturing and marketing joint ventures in Japan for polychloroprene (trade name: Neoprene) effective November 1, 2002. The joint ventures are Showa DDE Manufacturing K.K. (SDEM), which manufactures Neoprene in Kawasaki, and DDE Japan K.K. headquartered in Tokyo, which markets Neoprene and other elastomeric products. SDEM is a 50-50 joint venture while DDE Japan K.K. is owned 69.9 percent by DuPont Dow and 30.1 percent by SDK. The operation dates back to 1960 when SDK and DuPont established a 50-50 joint venture Showa Neoprene K.K. in Japan for the manufacture and sale of Neoprene and other elastomeric products. DuPont Dow and SDK have agreed that the two will hereafter independently operate their respective elastomer businesses. Based on the agreement, SDEM will become a 100 percent subsidiary of SDK, and DDE Japan K.K. will be fully owned by DuPont Dow. DDE Japan K.K. will continue to sell elastomers and DuPont Dow will continue its Neoprene operations globally. SDEM will be renamed Showa Denko Elastomers K.K. and continue producing polychloroprene. And SDK will sell the product inside and outside Japan under the new trade name of "Shoprene," aiming to expand its elastomer business. Showa Denko - www.sdk.co.jp - is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. the Company makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods) electronic equipment (hard disks for computers), and inorganic materials (ceramics, carbons). The Company has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to make and market polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation to strengthen the high-value-added fabricated aluminum products operations, and is today developing next-generation optical communications- use wafers. According to Wright Investor's Service, Showa Denko Kabushiki Kaisha at the end of 2001 had negative working capital, as current liabilities were Y488.73 billion while total current assets were only Y308.55 billion. Showa Denko Kabushiki Kaisha's principal activity is the manufacture and sale of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. SUMITOMO METAL: Will Ask Nippon Steel for Capital Injection ----------------------------------------------------------- Sumitomo Metal Industries Ltd. will ask Nippon Steel Corporation for an unspecified capital injection as early as the end of October, Nikkei and Nihon Keizai Shimbun reported in its Monday edition. Sumitomo Metal needs to procure steel sheet from Nippon Steel to streamline its iron works in Wakayama Prefecture. With the move expected to depreciate its facility and result in other restructuring losses, it aims to improve its financial health by receiving capital from Nippon Steel. Nippon Steel and Sumitomo Metal agreed in February to form a comprehensive alliance in the steel business. Under the current tie-up deal, Nippon Steel and Sumitomo Metal have already merged their welding materials subsidiaries, and have agreed to integrate their stainless steel operations. In September, Japan Credit Rating Agency has downgraded the long-term debt rating and CP program of Sumitomo Metal Industries Limited from A- and J-1 to BBB and J-2, respectively. The Company recorded a net loss of 104.7 billion yen for fiscal 2001 through March 31, 2002. The loss impaired the owners' equity. The financial structure is poor relative to that of peers. ========= K O R E A ========= DAEWOO MOTOR: SAIC Pays $59.7M for 10% Stake -------------------------------------------- Chinese automaker Shanghai Automotive Industry Corp Group (SAIC) will acquire a 10 percent stake in GM Daewoo Auto and Technology Co. for US$59.7 million, Auto Asia reported Monday. The new Company is due to be formally launched this month. SAIC will join General Motors (GM) and Suzuki, as a partner in GM Daewoo Auto and Technology Co. The new venture, in which Daewoo Motor's creditors also have a stake, will operate three of the bankrupt Daewoo Motor firm's plants. GM agreed in April to pay US$251 million for a 42.1 percent stake in the Daewoo spin-off. Suzuki will take 14.9 percent and Daewoo creditors 33 percent. HANBO STEEL: Finalizing Takeover Deal This Week ----------------------------------------------- AK Capital LLC will complete its purchase of Hanbo Iron & Steel Co. for $401 million within a week, Maeil Business Newspaper and Bloomberg reported Monday. AK Capital will probably pay the money by the end of November and complete its takeover by the end of this year. The government has been trying to sell Hanbo since 1997. The government's failure to agree to a sale after it rejected a $2 billion offer from Posco five years ago caused a deterioration in the Company's plants and equipment that helped drag down the price by about four-fifths. Hanbo went insolvent in January 1997 after failing to repay its debt. HYUNDAI MERCHANT: Facing Liquidity Shortage ------------------------------------------- Hyundai Merchant Marine (HMM) suffered a serious liquidity shortage, due to a rush of two local savings banks' demand for the repayment of 8.6 billion won worth its floated commercial papers that matured on October 10, the Korea Times reported Friday. The names of the two banks were not mentioned in the report. The Company, which was suspected of sending the controversial $900 million to North Korea, managed to avoid going bankrupt by convincing the two savings banks to accept the shipping firm's and its creditor banks' requests to delay the maturity. Currently, the shipping firm's CPs held by non-bank financial institutions totals 40 billion won, of which 3.5 billion won are held by savings banks. The Company's short-term loans and corporate bonds at banks maturing this month are estimated at around 300 billion won. Main creditor Korea Exchange Bank is drawing up necessary measures to ease the firm's temporary liquidity shortage, which is expected to be resolved a month later after receiving the proceeds from the ship sales. SEOUL BANK: Trimming 519 Jobs Ahead of Hana Bank Merger ----------------------------- ------------------------- SeoulBank has decided to cut its staff by 519 people, ahead of its planned merger with Hana Bank in December, Digital Chosun reported Friday. According to an agreement between Seoulbank and the Korea Deposit Insurance Corporation, the bank will have to complete its manpower-restructuring program before November. The bank said the notification of the labor union of the plan was done in accordance with the agreement. The bank's union, however, disproved the plan, claiming that the plan does not meet the schedule for a manpower reduction as defined in the agreement. =============== M A L A Y S I A =============== ABRAR CORPORATION: Still in Payment Default ------------------------------------------- Abrar Corporation Berhad (Special Administrators Appointed) said in a Kuala Lumpur Stock Exchange disclosure that there has been no change to the status in payment since the Company's previous announcement made on 30 September 2002. Pengurusan Danaharta Nasional Berhad placed Abrar Corporation under the administration of Special Administrators since 27 May 2000 pursuant to Section 24 of the Pengurusan Danaharta Nasional Berhad Act, 1998. With the appointment of the Special Administrators, there is a moratorium on the Company and no creditors may take action against the Company except in accordance with Section 41 of the Danaharta Act. The moratorium expires on 26 May 2003. On 11 July 2002, the Special Administrators of the Company entered into a Facilitation of Listing Agreement inter alia to transfer the listing status of the Company to OilCorp Berhad. The Special Administrators of the Company are currently finalizing the Company's Workout Proposal pursuant to Section 44 of the Danaharta Act and the Workout Proposal will be submitted to Danaharta for approval. The Workout Proposal will address the Company's default in payments. On 2 September 2002, Public Merchant Bank Berhad, on behalf of the Company, announced that the Company's Restructuring Proposals have been submitted to the Securities Commission for approval. KEMAYAN CORPORATION: Provides Update on Foreign Shareholdings ------------------------------------------------------------- The Board of Directors of Kemayan Corporation Berhad, which is undergoing a corporate and debt restructuring scheme, wishes to announce the following information on the level of foreign shareholdings as at 30 September 2002. 1) The percentage shareholdings of entitled foreigners as at 30 September 2002 is 49 percent; and 2) The percentage shareholdings of non-entitled foreigners as at 30 September 2002 is 6.95 percent. Kemayan had already approved to award non-entitled foreigners all rights and privileges etc. except the right to vote at the General Meeting of Company. KSU HOLDINGS: Defaults in RM33.46M Payment ------------------------------------------ As required by the KLSE Practice Note 1/2001, the Board of Directors of KSU Holdings Berhad wishes to provide an update on the details of all the facilities currently in default, as enclosed in Appendix A. The default by KSU as at 30 September 2002 amounted to RM33,459,966.15 of principal sum and RM1,805,421.41 of interest for term loans and overdraft facilities. There are no other new developments since the company's previous announcement with regards to this Practice Note. APPENDIX A DEFAULT AS AT 30 SEPTEMBER, 2002 MAY PLASTICS INDUSTRIES BERHAD BANK FACILITY PRINCIPAL DEFAULT INTEREST DEFAULT 1. MIMB/MIDF Term Loan RM28,528,191.15 RM386,558.52 MAY PACKAGING INDUSTRIES SDN BHD BANK FACILITY PRINCIPAL DEFAULT INTEREST DEFAULT 1. EON BANK BHD Term Loan RM3,431,775.00 RM1,387,082.00 KUMPULAN SEPANG UTAMA SDN BHD BANK FACILITY PRINCIPAL DEFAULT INTEREST DEFAULT 1. EON BANK BHD Overdraft RM1,500,000.00 RM31,780.89 TOTAL RM33,459,966.15 RM1,805,421.41 NCK CORPORATION: Moratorium Period Extended to October '03 ---------------------------------------------------------- NCK Corporation said Friday that the moratorium for the Companies, under Section 41 of the Pengurusan Danaharta Nasional Berhad Act 1998, which took effect from the date of the appointment of the Special Administrators, has been extended to 10 October 2003. The companies included in the moratorium are NCK Wire Products Sdn Bhd, Ng Choo Kwan & Sons Hardware Sdn Bhd, NCK Aluminium Extrusion Sdn Bhd, NCK Metal Sdn Bhd and Fook Chuan Trading Sdn Bhd. The extension is pursuant to Section 41(3) of the Act. During the period of the moratorium, no creditor may take action against the Companies except in accordance with Section 41 of the Act. RENONG BERHAD: FIIB Accepts Offer Price of US$17 Per Share ---------------------------------------------------------- Renong Berhad refers to their earlier announcement on 30 August 2002 wherein the company announced that its shareholders have approved the resolution for the proposed disposal of its entire equity interest of 600,000 ordinary shares in First Islamic Investment Bank (FIIB), representing 5.3 percent equity interest as at 31 December 2001, at a price per share of not less than the latest available audited net tangible assets (NTA) value per share of FIIB at the time of disposal. As mentioned in the circular dated 15 August 2002, the NTA of FIIB based on its latest audited consolidated accounts as at 31 December 2001, is US$145.20 million or US$12.91 per share (approximately RM551.76 million or RM49.04 per share based on the exchange rate of US$1 to RM3.80). Further to the above, Renong Berhad is pleased to announce that FIIB, via its letter dated 7 October 2002 has accepted Renong's offer to purchase the FIIB Shares as treasury stocks at a price of US$17.00 per share or approximately RM64.60 per share subject to satisfactory documentation. Accordingly, the total consideration will amount to US$10.2 million or approximately RM38.76 million in cash. The Offer Price represents a premium of US$4.09 per share (or RM15.54 per share) or 32% over the latest audited NTA per share of FIIB as at 31 December 2001. As mentioned in the Circular, the disposal of the FIIB Shares is consistent with the Renong Group's direction of not having banking as part of its core business. Based on the Offer Price, the Renong Group will record a one-off exceptional gain from the disposal of its investment in FIIB of approximately RM15.26 million as shown below: RM'million Gross disposal consideration 38.76 Less : Carrying value of investment (23.0) in Renong Group as at 30 June 2001 : Estimated expenses (0.5) Gain on disposal 15.26 Renong and FIIB will enter into a share purchase agreement in due course. RENONG BERHAD: Shares Up Slightly After Share Issue Reports ----------------------------------------------------------- Shares in Renong rose 2.6 percent on Friday at 40 cents (10.5 U.S. cents) after media reports that Malaysia's cash-strapped company would proceed with a private placement of new shares despite a plunge in the stock price following news of the plan. A dealing manager at a local brokerage said that selling pressure on the stock seemed to have eased after the company's assurance that the share placement would go ahead. The infrastructure firm has lost more than 40 percent since it announced three weeks ago it would raise 400 million ringgit ($105 million) through a private placement underwritten by parent United Engineers (Malaysia) (UEM). Dealers said investors have been concerned the placement might not go through, prompting the stock exchange to classify Renong as a financially-distressed, or so-called PN4, company. Renong said the fund raising was an immediate measure to stop shareholders' funds falling into deficit and to repay debt. ROAD BUILDER: Selling Agricultural Land for RM215.86M ----------------------------------------------------- The Board of Directors of Road Builder (M) Holdings Bhd (RBH) said that Seremban Two Holdings Sdn Bhd (STH), a wholly owned subsidiary of Seremban Two Sdn Bhd (STSB), which in turn is a 70 percent owned subsidiary of RBH, had on 11 October 2002 entered into a conditional Sale and Purchase Agreement (SPA) with Condoheights Development Sdn Bhd (in members' voluntary winding- up), also a wholly owned subsidiary of STSB for the acquisition of all those 52 contiguous pieces of freehold agriculture land measuring approximately 637 hectares (1,575.63 acres) located in Labu, Negeri Sembilan for a cash consideration of RM215,860,000.00 only. The Land will be acquired by STH free from all encumbrances but subject to the existing restriction-in-interest (if any) and all the existing conditions of the title and category of land use. The Purchase Consideration was arrived at on a willing-buyer willing-seller basis and the Purchase Consideration of RM215,860,000.00 will be satisfied by STH in the following manner: a. RM21,586,000.00, being the equivalent of 10% of the Purchase Consideration, to be paid to Condoheights upon the execution of the SPA as deposit; b. RM43,172,000.00, being the equivalent of 20% of the Purchase Consideration, to be paid to Condoheights within 30 days from the date of the execution of the SPA; c. RM43,172,000.00, being the equivalent of 20% of the Purchase Consideration, to be paid to Condoheights within 60 days from the date of the execution of the SPA; and d. RM107,930,000.00, being the balance Purchase Consideration, to be paid to Condoheights, on the completion date, which is within 14 days from the date when the SPA becomes unconditional. The purchase consideration will be financed by internally generated funds and/or bank borrowings. STH was incorporated in Malaysia on 30 August 1995 as a private limited company under the Companies Act, 1965. It is a dormant company and has not commenced business. STH is a wholly owned subsidiary of STSB which in turn is a 70% subsidiary of RBH. STH has an authorized and issued and paid-up share capital of RM5,000,000 divided into 5,000,000 ordinary shares of RM1.00 each. Condoheights was incorporated in Malaysia on 30 May 1984 as a private limited company under the Companies Act, 1965. Condoheights has an authorized share capital of RM500,000 divided into 500,000 ordinary shares of RM1.00 each of which RM200,000 comprising 200,000 ordinary shares of RM1.00 each have been issued and fully paid-up. Condoheights is a wholly owned subsidiary of STSB which in turn is a 70 percent equity owned subsidiary of RBH. Condoheights is the land's registered proprietor. Condoheights is currently undergoing a members' voluntary winding-up and Mr. Chuah Seong Phaik of Paul Chuah & Co. at No. 17, Jalan Ipoh Kecil, 50350 Kuala Lumpur has been appointed as the Liquidator for the winding-up. The Proposed Acquisition of Land by STH is part of the restructuring exercise to be undertaken by Condoheights pursuant to the terms and conditions of the Supplemental Agreement entered into between STSB and RBH with Reco Homebuilder (M) Sdn Bhd on 2 May 2002 (to vary the terms and conditions of the Share Subscription Agreement dated 6 November 2001). As announced to the Kuala Lumpur Stock Exchange on 7th October 2002, it is the intention of the STSB Board to keep the said Land within the STSB Group. There is no effect on the issued and paid-up share capital and shareholding structure of RBH There is no effect on the net tangible assets of the RBH Group, and on the earnings of RBH Group for the financial year ending 30 June 2003 as the Proposed Acquisition of Land is only expected to be completed in the first quarter of the financial year ending 30 June 2004. The Proposed Acquisition of Land by STH is subject to the following approvals being obtained: a. the Foreign Investment Committee; b. the approval of shareholders of STH and Condoheights; c. Condoheights having obtained the consent of the Estate Land Board to the transfer of the said Land to STH pursuant to Section 214A of the National Land Code, 1965; and d. STH having obtained the letter of waiver of stamp duty on the transfer of the said Land from the Stamp Office pursuant to Section 15A of the Stamp Act, 1959. Given that the Proposed Acquisition of Land is a transaction undertaken by STH and Condoheights, both wholly owned subsidiaries of STSB, which in turn is a 70 percent owned subsidiary of RBH, therefore none of the directors, substantial shareholders and persons connected with the directors and substantial shareholders of RBH are deemed to have any interest, direct or indirect, in the aforesaid transaction. Barring unforeseen circumstances and subject to all the required approvals being obtained, Road Builder expects to complete the Proposed Acquisition of Land within 9 months from the date of the execution of the SPA. SPORTMA CORPORATION: FIC Okays Amendments to Debt Rehab Scheme -------------------------------------------------------------- On behalf of the Special Administrator (SA), Affin Merchant Bank Berhad is pleased to announce that the Foreign Investment Committee (FIC), by its 3 October 2002 letter, has approved the Proposed Modifications to the proposed corporate and debt restructuring scheme of Sportma Corporation Berhad (Special Administrators Appointed). The approval by the FIC is subject to: i) Sportma increasing its Bumiputera equity participation to 30 percent before 30 June 2003; and ii) The approvals being obtained from the Securities Commissions (SC) and the Ministry of International Trade and Industry (MITI) for the Proposed Modifications. Further details of the Proposed Modifications can be found in the attachment at http://www.bankrupt.com/misc/TCRAP_Sportma0813.doc WEMBLEY INDUSTRIES: Seeks Extension of Time to Month-end -------------------------------------------------------- Alliance Merchant Bank Berhad, wishes to announce on behalf of Wembley Industries Holdings Berhad that it had on 11 October 2002 applied to the Kuala Lumpur Stock Exchange (KLSE) for a further extension of time to make an application to the relevant authorities in respect of the Proposals from 14 October 2002 to 31 October 2002. The Proposals include Capital Reduction and Consolidation, Debt Restructuring, Rights Issue; and Increase in Authorized Share Capital. WIJAYA BARU: Striking-Off Dormant Subsidiary -------------------------------------------- The Board of Directors of Wijaya Baru Global Berhad said in a Kuala Lumpur Stock Exchange disclosure that Pacific Chemicals (Malaysia) Sdn Bhd (PCMSB), a wholly owned subsidiary of the Company, had on 11 October 2002 submitted an application to the Companies Commission of Malaysia (CCM) to strike off its name from the register of CCM pursuant to Section 308(4) of the Companies Act, 1965. PCMSB was incorporated on 4 September 1984. It has not commenced operations since its incorporation and has no intention to commence business in the near future. The authorized share capital of PCMSB is RM25,000 comprising 25,000 ordinary shares of RM1.00 each. Its issued and fully paid up capital is RM2.00 comprising 2 ordinary shares of RM1.00 each. The application for striking off under Section 308 of the Act is only subject to CCM's approval. The striking off exercise shall not have any significant impact on the Company earnings per share, net tangible assets and share capital. ===================== P H I L I P P I N E S ===================== DIGITAL TELECOM: To Launch Mobile Operations on November 15 ----------------------------------------------------------- Digital Telecommunications Philippines Inc. (DIGITEL) will launch its mobile phone service on November 15, the Today Newspaper and AFX News reported Sunday, citing National Telecommunications Commission (NTC) Officer-In-Charge Armie Jane Borje. The NTC has approved Digitel's tariff rates of 9 pesos per minute for mobile voice calls and a maximum 3 pesos per text message for its short message service. TCR-AP reported earlier that NEC Corporation has declared DIGITEL in default of certain provisions of the Supply Contract dated July 8, 1999 between DIGITEL and NEC. The Notice of Default was issued after DIGITEL had given NEC a letter dated October 3, 2002 citing material violations of the terms and conditions of the Supply Contract by NEC, which include among others the delay in the delivery of contracted subscriber lines; the intermittent and unreliable performance of the Wireless Local Loop System; the failure to post the performance bond; and failure to turn-over certain permits clearances and other government requirements, and demanding that the same be rectified within five days from receipt of said letter. According to Wright Investor's Service, Digital Telecommunications Phils Inc. at the end of 2001 had negative working capital, as current liabilities were 8.99 billion Philippine Pesos while total current assets were only 6.01 billion Philippine Pesos. MULTITEL HOLDINGS: SEC Rejects Request to Withhold Probe -------------------------------------------------------- The Securities and Exchange Commission (SEC) rejected a request from Multitel Holdings International, Inc. to withhold any investigation against the lending investor, pending the results of an audit by accounting firm SGV & Co., the Business World reported. In an October 8 letter to Multitel counsel Vicente Millora, SEC Chairperson Lilia R. Bautista said the commission's investigation does not interfere with the ongoing SGV audit on Multitel's books. Millora accused the SEC of abusing its powers by raiding Multitel's office despite ongoing discussions on the Company's plans to become legitimate. The lawyer had asked the SEC to await the outcome of the SGV audit, which was being done as part of its efforts to legitimize operations. Bautista said it appears Multitel may have been using the discussions with SEC to continue its illegal operations. Bautista said Millora had earlier denied the Baladjays were connected with Oneheart Multi-purpose Cooperative, MMC Investments and Star Enterprises Multi-purpose Cooperative. "The inventory of documents seized appear to show that documents pertaining to Oneheart, MMC and Star were located in the offices of MIHI (Multitel), clearly showing the Baladjays were connected to these entities and affirms the SEC's prior findings," she said. Also, Multitel appears to have been concealing documents from the SEC. The SEC and National Bureau of Investigation found specific documents, which Multitel had earlier denied having. Two weeks ago, the SEC issued a cease and desist order against Multitel to prevent the Company from soliciting more investments from the public. The order also covered Multitel's marketing affiliates Oneheart, Star and Everflow Group of Companies. MULTITEL INTERNATIONAL: SEC Denies Seizing Cash During Raid ----------------------------------------------------------- The Securities and Exchange Commission (SEC) responded to allegations that the corporate watchdog agency had seized cash from Multitel International Holdings Inc. (MIHI), forcing the holding firm to stop paying back its investors. "The Commission informed the public that during the service of search warrants against MIHI last September 30, the officials from the SEC and agents from the National Bureau of Investigation did not seize any cash from said corporation in order not to disrupt the return of investments to legitimate investors," the SEC said in a notice to the public. The SEC said it has the power to search and seize documents under Section 5 of the Securities Regulation Code. Bautista also said there is no provision that prohibits a SEC director from being present in the service of a search warrant. "Generally, this is left to the discretion of the director involved but we advocate leadership by example," she said. "The actions by SEC officials show that the Commission will take action without fear or favor against anyone who violates any of the laws being administered by the Commission," Bautista further said. Finding no basis in the allegations leveled against the SEC, Bautista has advised MIHI to be more prudent in their charges against government officials unless they have more concrete evidence. NATIONAL POWER: Debt Transfer Deadline Set ------------------------------------------ The Power Sector Assets and Liabilities Management Corporation (PSALM) has set a deadline to work out the transfer of debts and other financial obligations of National Power Corporation (Napocor), within the next 30 days, the Manila Bulletin and Dow Jones reported Monday. PSALM tasked to oversee Napocor's privatization, submitted to lenders the final blueprint of its privatization plan for the state utility after Philippine President Gloria Macapagal Arroyo approved the plan. "We are hoping to seal a deal with the lenders on the transfer of Napocor's debt obligations within the next 30 days," PSALM President Edgardo del Fonso said. NATIONAL POWER: ERC Decides Petition on Pricing Incentive --------------------------------------------------------- The Energy Regulatory Commission (ERC) is studying National Power Corporation's request to allow the implementation of its Special Program to Enhance Electricity Demand (SPEED) program, Business World reported Monday, citing ERC Acting Chairman Leticia V. Ibay. Ibay said the regulatory body is expected to issue its decision possibly on Friday. The SPEED proposes to extend a fixed discount of 80 centavos per kilowatthour (kWH) for industrial users in the Luzon grid directly connected to Napocor for the incremental use of power above their customer base line. Napocor also proposed a 70-centavo discount (off-peak only) for customers in the Cebu-Negros grid (Visayas), and 10 centavos for customers in the Mindanao grid. Napocor proposes for the discount to be fixed throughout the implementation of the pricing incentive program. The program is proposed to be effective until 2004, provided Napocor still has available unutilized excess generating capacity. The first phase will cover some 219 large industrial consumers in Metro Manila. To be qualified for the pricing incentive program, the firms should have minimum monthly demand of 1,000- kilowatt (kW) and above. The second phase will allows additional 437 industrial customers in Metro Manila with minimum monthly power demand of 500 kW. To recall, the Energy Department had promised to implement SPEED starting last month in compliance with President Gloria Macapagal Arroyo's directive issued during her State of the Nation Address last July to reduce the cost of electricity. However, Napocor was not able to file its final application for the implementation of the SPEED before the ERC until the second week of September. PHILIPPINE LONG: First Pac Aims to Cut Stake's Sale Price --------------------------------------------------------- First Pacific Co. Limited may cut the selling price for its 24.47 percent stake in the Philippine Long Distance Telephone Co. (PLDT), the Philippine Daily Inquirer reports. The report said the Salim group is willing to sell its PLDT shares at a minimum price of US$12 per share against the US$21 price offered by the Gokongwei group, which backed out of the prospective joint venture deal with First Pacific. First Pacific is now leaning towards an outright sale of its PLDT stake. Separately, the Inquirer reported that that John Gokongwei Jr. is still keen on the PLDT stake. PHILIPPINE SEVEN: Sees FY Net Loss, Slows Openings -------------------------------------------------- Philippine Seven Corporation sees a net loss this year due to stiff competition in the convenience store market, and has decided to suspend the opening of new 7-11 stores due to demand, AFX News reported, quoting Philippine Seven Chairman Vicente Paterno. In 2001, the Company incurred a net loss of 37.4 million pesos, compared with a loss of 11.96 million a year earlier. Paterno said Philippine Seven now expects the total number of outlets at 200 by 2004, against an earlier projection of 500 by 2005. He said there are currently 165 7-11 outlets. ================= S I N G A P O R E ================= BONVESTS HOLDINGS: Reports Voluntary Winding Up of Dormant Unit --------------------------------------------------------------- The Board of Directors of Bonvests Holdings Limited announced that wholly owned unit Unique Properties Pte Ltd., which has been dormant, is at the request of the Directors, to be put into members' voluntary winding-up on October 11, 2002 pursuant to Section 290(1)(b) of the Companies Act, Cap. 50. Bonvests Holdings Limited operates as an investment holding and provides management services to its subsidiary companies. The Group operates primarily in the following business segments: * RENTAL: Comprises the owning and letting of properties. * DEVELOPMENT: Includes the development of properties. * INDUSTRIAL: Covers collection and disposal of waste and contract cleaning. * FOOD AND BEVERAGE: Comprises the operation of food and beverage restaurants. * HOTEL: Development and promotion of hotel trade and its related services. * INVESTMENT AND OTHERS: Relates to investment trading and selling of writing instruments. CHARTERED SEMICON: May Cut Jobs to Reduce Cost ---------------------------------------------- Money-losing Chartered Semiconductor Manufacturing (CSM) may cut jobs to save money as just 40 percent of its factory capacity is now being used, the Straits Times reported Saturday. The Company, which employed 3,982 staff at the end of last year, has five wafer fabrication plants and is now equipping its sixth plant. CSM needs a capacity utilization rate of 70 percent to break even, warned in September that it would miss fourth-quarter revenue targets because of flagging customer demand. Analysts said Chartered, fresh from raising US$620 million (S$1.1 billion) in a poorly subscribed rights issue last week, needs further cuts to its operating costs. Analysts estimate that labor costs account for between 5 and 10 per cent of CSM's operating costs, while depreciation costs comprise about 50 per cent. Analysts expect Chartered to post a US$343 million loss this year after a record loss of US$384 million in 2001. It is expected to continue bleeding red ink through next year. Singapore Technologies holds a 60.5 per cent stake in Chartered, the world's third-largest contract maker of microchips. Its subsidiary, Singapore Technologies Engineering, announced 460 retrenchments last week. A Chartered spokesman declined to comment. CHARTERED SEMICON: Posts Notice of Change in Interest ----------------------------------------------------- Chartered Semiconductor Manufacturing Ltd. posted a notice of changes in Director Ang Tang Yong's interest: Date of notice to Company: 11 Oct 2002 Date of change of shareholding: 10 Oct 2002 Name of registered holder: Ang Tang Yong Circumstance(s) giving rise to the interest: Others Please specify details: Allotted shares pursuant to the exercise of rights to subscribe for new shares under Chartered's rights offering Shares held in the name of registered holder No. of shares of the change: 143,460 Percentage of issued share capital: 0.0057 Amount of consideration per share excluding brokerage, GST, stamp duties, learning fee: S$1.00 No. of shares held before change: 179,540 Percentage of issued share capital: 0.0072 No. of shares held after change: 323,000 Percentage of issued share capital: 0.013 Holdings of Director including direct and deemed interest Deemed Direct No. of shares held before change: 0 179,540 Percentage of issued share capital: 0 0.0072 No. of shares held after change: 0 323,000 Percentage of issued share capital: 0 0.013 Total shares: 0 323,000 Ang Tang Yong is an alternate director of Chartered Silicon Partners Pte Ltd, a subsidiary of Chartered Semiconductor Manufacturing Ltd. CHARTERED SEMICON: Says Half of Directors Take Up Rights -------------------------------------------------------- The Singapore Exchange Securities Trading Limited (SGX) filings showed that several Chartered Directors, including President and Chief Executive Officer Chia Song Hwee, had subscribed to the rights offer, the Straits Times and Dow Jones reported. Chia took up 107,829 shares at $1 apiece. Chartered shares closed 1.5 cents higher at 91.5 cents on Sunday. 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 =============== T H A I L A N D =============== ITALIAN-THAI DEVELOPMENT: Hopes to Get THB20B in New Projects ------------------------------------------------------------- Construction giant Italian Thai Development PCL, which hopes to graduate from its arduous debt-restructuring program today, expects to win new domestic and overseas construction projects worth THB20 billion this quarter, the Nation reports. President Premchai Karnasuta said Ital-Thai's new projects would likely be the Nam Thuen 2 dam project in Laos worth THB10 billion, a railway project in Bangladesh worth THB4 billion and a domestic project valued at THB5 billion. Revenue from the new projects would start to be recognized next year, while about Bt6-7 billion in revenue would be booked this quarter from several nearly completed projects, he said. If the company can generate income as targeted, he believes that it can begin paying dividends to shareholders in two years. Ital-Thai entered the debt restructuring process of the Central Bankruptcy Court last year with about Bt22 billion in debt. Its Bt12.8-billion debt restructuring - involving a share buy-back, debt-to-equity swap and debt rescheduling - has been completed and the Central Bankruptcy Court approved its rehabilitation plan last month. Its major creditors are Siam Commercial Bank; investment bank Credit Suisse First Boston, a unit of Credit Suisse Group; and BNP Paribas Bank. KRUNG THAI: Card Unit to Price IPO at THB19 a Share --------------------------------------------------- Krung Thai Card PCL, a spin-off of state-owned Krung Thai Bank PCL's credit card business, will offer 51 million shares at a share price of between 19 baht and 23 baht in its initial public offering, Dow Jones Newswires reports. The IPO, set for between October 16 and 18, will reduce Krung Thai Bank's stake to 49 percent. It is targeted to raise about 500 million baht, bringing its post IPO capital to 1 billion baht, divided in 100 million shares. Of the 51 million shares to be offered to the public, 50 million will be new shares, while 1 million are existing shares. TOTAL ACCESS: Selling Up to $114M Bonds for Debt Refinancing ------------------------------------------------------------ Total Access Communication Plc (TAC), Thailand's second-largest mobile phone firm, plans to sell up to 5 billion baht ($114 million) of seven-year bonds for debt refinancing in October, Reuters reports. According to an underwriter, who declined to be identified, TAC will offer the first lot of 4 billion baht to institutional and retail investors. The rest will be reserved for offer later if demand exceeded the first lot. Detail of the coupon rate is yet to be finalized. TAC, 30 percent owned by Norway's Telenor, said the refinancing plan is aimed at reducing interest expenses. TCR-AP in September reported that TAC planned to sell by year- end as much as 4 billion baht of bonds and borrow 4 billion baht from banks. ABN Amro Holding NV and Siam Commercial Bank Pcl are Total Access' advisers on the sale. According to Bloomberg data, Total Access has 52 billion baht in debt due through 2006. It includes $200 million of bonds that investors may convert into stock at $10.50 a share. PRASIT PATANA: Rehab Plan Implementation Progressing ---------------------------------------------------- Prasit Patana Public Company Limited (PYT) sets out below its Progress Report on the implementation of its Rehabilitation Plan for the period from 9 July 2002 to 9 October 2002: - PYT is in the process of transferring the Assets and Liabilities relating to the hospital business to Phyathai 1 Hospital Company Limited. - Minority shareholders holding shares in Phyathai 2 Hospital Company Limited (PYT2) and Phyathai 3 Hospital Company Limited (PYT3) confirmed their intention to exchange their shares in PYT2 or PYT3 for shares in PYT at 20 July 2002. - The budgeted capital expenditure for the period from 1 March 2002 to 30 September 2002 is 76.64 MB, and total spending for the period from 1 March 2002 to 30 September 2002 is 40.07 MB. - PYT commenced paying interest in respect of Restructured Debt and Performance Linked Obligation Debt in accordance with the conditions specified in said agreements to financial creditors. The first interest payment was on 9 August 2002. - The lenders appointed Bank of Ayudhaya Plc. as the Facility Agent and the Security Agent on 5 August 2002. PricewaterhouseCoopers Corporate Restructuring Limited is the Plan Administrator of PYT. SIKARIN PLC: Two Directors Step Down From Board ----------------------------------------------- Sikarin Public Company Limited said in a disclosure to the Stock Exchange of Thailand that two board of directors have resigned from being board of directors of company effective October 11. The reason for the resignation of Mr. Anant Kieatfeungfoo and Mr. Taweesak Hongtong was not disclosed. Bangkok-based Sikarin, which is under rehabilitation, is in the hospital business. S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick, Salve M. Mordeno, Maria Cristina Pernites-Lao, Editors. Copyright 2002. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $575 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***