/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/021029.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 28, 2002, Vol. 5, No. 204 Headlines A U S T R A L I A COLES MYER: Choice Between Lew and Fletcher Key AGM Issue COLES MYER: Directors Want Solomon Lew Investigated EMPIRE SYSTEMS: Former Director Sentenced to Ten Months in Jail MIM HOLDINGS: Sells Non-core German Zinc Smelter C H I N A & H O N G K O N G CHINA ANIMAL: High Court to Hear Petition Scheduled Nov. 13 CHINA LIAONING: November 6 Hearing on Wind Up Petition Set CHINA LIAONING: High Court to Hear Wind up Petition on Nov. 6 DOT MEDIA: Petition Seeking Firm's Wind Up To Be Heard Nov. 6 FULL BRIGHT: Wind Up Petition Slated for Hearing HING TAT: Petition Seeking Wind Up To Be Heard November 27 JR COLLECTION: High Court to Hear Wind Up Petition on Nov. 13 SMART DRAGON: Petition Seeking Wind Up To Be Heard Nov. 27 TRIFORD FINANCE: Wind Up Petition Hearing Set for November WELSON CHEMICALS: Winding Up Petition To Be Heard November 13 I N D O N E S I A BANK NEGARA: Fitch Rates US$100-150 Million Bonds "B-" HOLDIKO PERKASA: Metropolitan Stake Going to Berca Indonesia SINAR MAS: Agrees to Pay Creditors Monthly US$30M Starting 2003 J A P A N ALL NIPPON: R&I Assigns BBB+ Rating DAIWA SECURITIES: Swings Back Into The Black ISUZU LIMITED: Withdraws From Joint SUV Production in US KENWOOD CORPORATION: Halts Mobile Phone Production This Month SUMITOMO MITSUI: Unit Revises 1H02 Financial Result K O R E A CHOHUNG BANK: Selects Successful Bidder by Next Month M A L A Y S I A BANK NIAGA: Commerce Bank Expected to Buy 51% Stake Yesterday BERJAYA SPORTS: Unit Buys 8% Irredeemable Convertible Stocks FW INDUSTRIES: Obtains Wind Up Petition Restraining Order MWE HOLDINGS: Sells 55% Stake in Loss-making Skypark TELEKOM MALAYSIA: Finalizes Deal to Ship Mobile Unit to Celcom * KLSE Threatens to Delist Troubled Listed Companies by Dec. 31 P H I L I P P I N E S BENPRES HOLDINGS: Unit Hikes Capital S I N G A P O R E CHARTERED SEMICONDUCTOR: Clarifies 4Q02 Share Count and EPS CHARTERED SEMICONDUCTOR: Stays in The Red, Warns of More Losses EASYCALL INTERNATIONAL: AGM Set on November 28 GOODPACK LIMITED: Winding Up Dormant Subsidiary ISOFTEL LIMITED: Posts Notice of Director's Interest MEDIARING.COM: Appoints Khaw Kheng Joo as CEO T H A I L A N D KRUNG THAI: Will Refinance Bad Loans Due to Govt Pressure TPI POLENE: Reverses Last Year's Q3 Gains Due to Forex Losses - - - - - - - - ================= A U S T R A L I A ================= COLES MYER: Choice Between Lew and Fletcher Key AGM Issue --------------------------------------------------------- CEO John Fletcher has threatened to bolt out of the struggling retailer should Director Solomon Lew be re-elected to the board, the Sydney Morning Herald reported yesterday. In an interview with the Australian daily over the weekend, Chairman Rick Allert disclosed that he and Mr. Fletcher had talked recently where the latter expressed his desire to step down if Mr. Lew's 17-year tenure in the board gets extended. "If Sol gets back there'd have to be a level of discomfort. He needs to think that through," the chairman told Business Sunday. Mr. Fletcher and seven other directors including Mr. Allert are advocating shareholders vote Mr. Lew off the board during the group's annual general meeting slated on November 20. According to Mr. Allert, Mr. Fletcher has expressed reservations about Mr. Lew's $72 million worth of related-party dealings with Coles Myer and the Lew family's financial involvement with rival retailers including Witchery, NineWest and FCUK. Mr. Lew has pledged to sever all links with the suppliers. Mr. Allert said he would try to persuade Mr. Fletcher to stay, as the chief executive was "absolutely critical" to a recovery at the struggling retailer. Coles Myer has suffered a steep decline in earnings due to problems with its apparel and general merchandise businesses Target and Myer Grace. Mr. Allert said no other directors had indicated they would resign if Mr. Lew were re-elected but all would have to "think through" their positions. Mr. Lew hit back on Sunday within hours of the interview, criticizing Mr. Fletcher's role in the push to unseat him. "The chief executive is accountable to the board," he said. "It is entirely unacceptable that a chief executive should actively seek the removal of a sitting director." Mr. Lew suggested the opposition may stem from his stance on key issues. It is understood Mr. Lew has opposed during Mr. Fletcher's tenure the timing and process of a move to spin off the underperforming Myer Grace Bros department store chain and the elimination of a shareholder discount card. Last week the other directors claimed in a statement the decision to scrap the card was unanimous. In addition, Mr. Lew has called for non-executive Coles Myer directors to have the cash component of their remuneration cut in half and their pay packets more aligned to performance and payable in shares. "I have raised legitimate issues and questions in relation to very serious matters," Mr. Lew said. He went on to say that while board unity was desirable, it should not be viewed as an end in itself. Mr. Lew has a 7.4 percent stake in Coles Myer through his listed company Premier Investments and direct share purchases. A substantial part of the interest is hedged, allowing the shares to be sold after the November 20 annual meeting. Analysts estimate Mr. Lew needs at least 15-20 percent of Coles Myer to ensure his re-election, the report said. COLES MYER: Directors Want Solomon Lew Investigated --------------------------------------------------- Coles Myer, the struggling retailer, has formally asked corporate regulators and the Australian Stock Exchange to look into how director Solomon Lew is trying to shore up his position in the company's boardroom battle by "borrowing" the votes on other people's shares, ahead of the company's annual general meeting, AFX-Asia reported yesterday. "It would be a sad day for corporate Australia if control of a company were to change on the basis of borrowed votes," Coles Chairman Rick Allert was quoted by the news agency, as saying during an interview with a local television station. Mr. Allert and Coles CEO John Fletcher want Mr. Lew ousted over his opposition to a reform program that would split the company by selling its loss-making non-retail businesses, including the Myer, Grace Bros and Target stores. It is understood that Mr. Lew last week sent a yellow proxy form to shareholders on which Mr. Lew is the default proxy-holder if a box next to Mr. Lew's name is not ticked or another person is not nominated in writing, the West Australian said in a separate report. Mr. Lew's yellow voting forms have been filled in with votes for the re-election of Mr. Lew and Mr. Leibler, while leaving the other nominees blank. Coles Myer had earlier sent shareholders a blue form at which the default proxy was the company chairman and with no pre- crossed voting boxes. It is understood ASIC may release a statement this week about the two sets of proxy forms, although a spokeswoman for ASIC said there were no legal difficulties about companies or candidates sending out more than one proxy form to investors, the West Australian said. EMPIRE SYSTEMS: Former Director Sentenced to Ten Months in Jail --------------------------------------------------------------- Michael Roussi, also known as Misagh Roussi, appeared on Friday before the Downing Centre Local Court, Sydney, and was sentenced by Magistrate Emmett to ten months jail, to serve seven and a half months. Mr. Roussi pleaded guilty to being involved in the management of Empire Systems Pty Limited (Empire Systems) between June 9, 1994 and April 1, 1998, when he was automatically prevented from doing so on the grounds of bankruptcy. Mr. Roussi was ordered to serve his term via periodic (weekend) detention, and will begin his sentence on September 12, 2004, following the completion of the two-year term of periodic detention he was sentenced to on September 6 this year. The September sentence related to Mr. Roussi's conviction on two charges of having improperly used his position as an officer of Empire Systems to gain an advantage of $990,923 for his wife, Ms. Rita Rohani. It followed a two-week trial in June 2002 before Judge Blackmore, where the jury heard details of Mr. Roussi's involvement with Empire Systems, a large computer retailer that went into liquidation in 1998. Some 1,500 creditors, primarily customers, lost approximately $3.5 million when Empire Systems collapsed in April 1998. "Mr. Roussi narrowly avoided a full custodial sentence today. As he is already serving weekend detention, this further sentence means he will continue to do so until April 2005 at the earliest," ASIC Director Enforcement, Allen Turton said. The charges against Mr. Roussi were laid after an investigation by the Australian Securities and Investments Commission (ASIC). They were prosecuted by the Commonwealth Director of Public Prosecutions. MIM HOLDINGS: Sells Non-core German Zinc Smelter ------------------------------------------------ Sudamin Investment GmbH will acquire the German zinc smelting business MHD from the MIM group under an agreement announced Monday. The acquisition remains subject to government approvals connected with satisfaction of the purchaser's financing requirements for the continuing business and certain regulatory approvals, and if these are obtained, is expected to be concluded in December. Sudamin is a subsidiary of Safeguard International Fund LP, a United States based private equity firm with investments in technology-oriented industrial businesses in Europe and North America. The MHD business comprises a zinc smelter, lead smelter and zinc refinery at Duisburg. MIM owns a similar business at Avonmouth in the UK. The new investor group proposes to restructure the Duisburg operation by adding additional secondary processing capacity and various other equipment upgrades to ensure long-term viability of the plant. MIM Managing Director Vince Gauci said that the two smelters were non-core businesses for MIM, which had been pursuing an exit strategy for some time. Mr. Gauci said that the acquisition agreement for MHD represented a considerably better outcome for MIM shareholders than closure. Under the acquisition agreement for MHD, MIM will pay Euro 30 million (A$53 million) to fund anticipated cash losses from weak zinc prices over the next 18 months and to contribute to the plant's conversion to a total recycling operation. After write-offs, MIM would book a loss of approximately A$68 million related to the divestment. Currently, the Duisburg plant draws about half of its feed from secondary (recycled) sources and half in the form of mine concentrates including 70 000 tonnes a year from MIM's McArthur River mine in Australia's Northern Territory. Sudamin has agreed to continue processing McArthur River concentrate at the current rate until the Duisburg plant becomes a total recycling operation. It has also been agreed that the crude lead produced at Duisburg will continue to be supplied to MIM's lead refinery at Northfleet in the UK. One of MIM's key strategic objectives is to convert the high revenues from its zinc-lead business into profits by reducing transport, smelting and refining costs for its mines and exiting the European zinc smelters. To this end, on-site production of zinc metal at the McArthur River mine using the company's Albion Process technology is under feasibility study. "Today's announcement represents a satisfactory outcome for MIM and Sudamin," Mr Gauci said. "On completion of the sale, MIM will achieve its objective of exiting a non-core business with a favourable financial outcome. For employees and the Duisburg community, the plant would continue as a long-term viable operation." For more information visit the company's Web site: http://www.mim.com.au For further information: Media: Investors: Collin Myers Allan Ryan GENERAL MANAGER CORPORATE AFFAIRS Bus: (61 7) 3833 8285 PRINCIPAL ADVISER Mobile: 0419 703 145 Investor Relations Bus: (61 7) 3833 8295 Mobile: 0419 781 380 ================================ C H I N A & H O N G K O N G ================================ CHINA ANIMAL: High Court to Hear Petition Scheduled Nov. 13 ------------------------------------------------------------ A petition seeking the wind up of China Animal Fibre Company Limited is scheduled for hearing before the High Court of Hong Kong on November 13, 2002 at 10:30 in the morning. Bank of China (Hong Kong) Limited whose registered office is situate at 14th Floor, Bank of China Tower, 1 Garden Road, Hong Kong filed the petition on September 6, 2002. The law firm Tsang, Chan & Wong represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tsang, Chan & Wong, which holds office at the 16th Floor, Wing On House, 71 Des Voeux Road, Central, Hong Kong. The Notice must state the name and address of the person, or if a firm or his or their Solicitor (if any) and must be served or if posted, must be sent by post in sufficient time to reach the abovenamed law firm not later than six o'clock in the afternoon of the 12th day of November 2002. CHINA LIAONING: November 6 Hearing on Wind Up Petition Set ---------------------------------------------------------- A petition seeking the wind up China Liaoning Limited is scheduled for hearing before the High Court of Hong Kong on November 6, 2002 at 10:00 in the morning. China Lioning Limited of 40/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong filed the petition on August 14, 2002. Linklaters represents the petitioner. Creditors and other interested parties may attend the hearing. They only neeed to notify in writing the law firm Linklaters, which holds office at the 10th Floor, Alexandra House, 16-20 Chater Road, Hong Kong. CHINA LIAONING: High Court to Hear Wind up Petition on Nov. 6 ------------------------------------------------------------- A petition seeking the wind up of China Liaoning Credit Limited is scheduled for hearing before the High Court of Hong Kong on November 6, 2002 at 10:00 in the morning. China Lioning Limited of 40/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong brought the petition on August 14, 2002. The petition is represented by the law firm Linklaters. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Linklaters, which holds office at the 10th Floor, Alexandra House, 16-20 Chater Road, Hong Kong. DOT MEDIA: Petition Seeking Firm's Wind Up To Be Heard Nov. 6 ------------------------------------------------------------- Dot Media Industries Limited faces a wind up petition, which the High Court of Hong Kong will hear on November 6, 2002 at 10:30 in the morning. Koninklijke Philips Electronics N.V. Limited whose principal place of business is situate at Groenewoudseweg 1, 5621BA Eindhoven, The Netherlands brought the petition on August 16, 2002. Petitioner in represented by Baker & McKenzie. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Baker & McKenzie, which holds office at the 14th Floor, Hutchison House, Hong Kong. FULL BRIGHT: Wind Up Petition Slated for Hearing ------------------------------------------------ The High Court of Hong Kong will hear on November 6, 2002 at 10:00 in the morning the petition seeking the wind up of Full Bright Development Limited. Full Bright Development Limited of 40/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong brought the petition on August 14, 2002 with the aid of Linklaters. Creditors and other interested parties may attend the hearing. They only have to notify in writing Linklaters, which holds office at the 10th Floor, Alexandra House 16-20 Chater Road Hong Kong. HING TAT: Petition Seeking Wind Up To Be Heard November 27 ---------------------------------------------------------- The High Court of Hong Kong has scheduled for hearing on November 27, 2002 at 10:30 in the morning the wind up petition filed against Hing Tat Investment Limited. Bank of China (Hong Kong) Limited whose registered office is situate at 14th Floor, Bank of China Tower, 1 Garden Road, Hong Kong filed the petition on September 25, 2002. Tsang, Chan & Wong represents the petitioner. Creditors and other interested parties who support or oppose the making of an order on the petition are encouraged to attend the hearing. They only need to notify in writing Tsang, Chan & Wong, which holds office at the 16th Floor, Wing On House, 71 Des Voeux Road, Central, Hong Kong. JR COLLECTION: High Court to Hear Wind Up Petition on Nov. 13 ------------------------------------------------------------- A petition seeking the wind up JR Collection Limited is scheduled for hearing before the High Court of Hong Kong on November 13, 2002 at 10:30 in the morning. The Bank of China (Hong Kong) Limited whose registered office is situate at 14th Floor, Bank of China Tower, 1 Garden Road, Hong Kong filed the petition on September 7, 2002. The petitioner is represented by Tsang, Chan & Wong. Creditors and other interested parties may attend the hearing. They only need to notify in writing Tsang, Chan & Wong, which holds office at the 16th Floor, Wing On House, 71 Des Voeux Road, Central, Hong Kong. SMART DRAGON: Petition Seeking Wind Up To Be Heard Nov. 27 ---------------------------------------------------------- The High Court of Hong Kong will hear on November 27, 2002 at 9:30 in the morning the petition seeking the wind up of Smart Dragon (Hong Kong) Limited. The Bank of China (Hong Kong) Limited whose registered office is situate at 14th Floor, Bank of China Tower, 1 Garden Road, Hong Kong, brought the petition on September 24, 2002. Messrs. Deacons represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Messrs. Deacons, which holds office at the 3rd-7th, 18th and 29th Floors Alexandra House, Chater Road, Central, Hong Kong. TRIFORD FINANCE: Wind Up Petition Hearing Set for November ---------------------------------------------------------- The High Court of Hong Kong will hear on November 20, 2002 at 9:30 in the morning the petition seeking the wind up of Triford Finance Company Limited. Bank of China (Hong Kong) Limited whose registered office is situate at 14th Floor, Bank of China Tower, 1 Garden Road, Hong Kong brought the petition on September 18, 2002. Petitioner is represented by Koo and Partners. Creditors and other interested parties who support or oppose the making of an order on this petition are encouraged to attend the hearing. They only need to notify in writing Koo and Partners, which holds office at 21-22/F., Bank of China Tower, 1 Garden Road, Central, Hong Kong. WELSON CHEMICALS: Winding Up Petition To Be Heard November 13 ------------------------------------------------------------- The petition seeking the wind up of Welson Chemicals (HK) Limited is scheduled for hearing before the High Court of Hong Kong on November 13, 2002 at 10:30 in the morning. The Bank of China (Hong Kong) Limited whose registered office is located at the 14th Floor, Bank of China Tower, 1 Garden Road, Hong Kong filed the petition on September 7, 2002 with the aid of Tsang, Chan & Wong. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing TSANG, CHAN & WONG, whose office is located at the 16th Floor, Wing On House 71 Des Voeux Road, Central, Hong Kong. ================= I N D O N E S I A ================= BANK NEGARA: Fitch Rates US$100-150 Million Bonds "B-" ------------------------------------------------------ International credit rating agency, Fitch Rating, gave PT Bank Negara's proposed US$100-150 million subordinated bond issue due 2012 a "B-" rating. AFX-Asia says the rating is in line with the bank's ratings: "B" in terms of short- and long-term senior foreign currency ratings, "D" in individual rating and "4T" in terms of support. "BNI's ratings reflect its reasonably sound overall financial position, noting that future earnings should be sufficient to cover existing loan quality problems," Fitch said in a statement. "However, the bank is constrained by the difficult operating environment in Indonesia and the very strained finances of the government, on which it is substantially dependent," says Fitch. BNI has re-focused its lending on consumers and small- to medium-sized enterprises in the wake of the 1997-98 financial crisis, as corporate sector activity dried up. It has also undertaken an operational restructuring, although the full benefits of this would not be seen until an upgrade to its technology systems in mid-2005, Fitch notes. BNI is Indonesia's second largest bank with 124 trillion rupiah in assets. HOLDIKO PERKASA: Metropolitan Stake Going to Berca Indonesia ------------------------------------------------------------ Berca Indonesia has been chosen as the winning bidder for the 47.5% stake of PT Holdiko Perkasa in property company PT Metropolitan Kentjana. Citing Holdiko vice president Irawati Koeswara, AFX-Asia said PT Berca Indonesia's bid was higher than the other two bidders -- PT Puspita Nirmala and PT Sarana Inti Trasindo Perkasa. She declined to specify the exact value proposed by Berca Indonesia but said it is above a 600 billion rupiah. Ms. Koeswara said Holdiko and Berca Indonesia are now negotiating the final details of the deal. Metropolitan Kentjana's portfolio of property assets includes the World Trade Center building and its neighbors Wisma Metropolitan I and II in Jakarta's central business district, as well as Pondok Indah Mall and Pondok Indah Estate in south Jakarta. Holdiko is aiming to raise nearly 4.0 trillion rupiah through asset sales to the Indonesia Bank Restructuring Agency (IBRA). Holdiko is a holding company established pursuant to the Shareholding Settlement Agreement between IBRA and the Salim Group. SINAR MAS: Agrees to Pay Creditors Monthly US$30M Starting 2003 --------------------------------------------------------------- The Sinar Mas Group informed the Jakarta Stock Exchange last week that beginning 2003 it will pay US$30 million a month to an escrow account in Bank Mandiri, as part of an agreement reached with creditors of its affiliates. The payment will answer for the obligations of pulp and paper subsidiaries Tjiwi Kimia, Indah Kiat, Pindo Deli and Lontar Papyrus, said Asia Pulse, citing the stock exchange disclosure. Toward the end of this year the group will also pay US$20 million to the escrow account. In addition, it will have to pay bond coupon to holders, the group said. The payments will not affect its working capital, Sinar Mas assures. In August, another troubled unit, Palm-based consumer company Sinar Mas Agro Resources & Technology also secured an agreement from its creditors to restructure debts of 159.98 billion rupiah (US$18 million). Standard Chartered Bank agreed to extend repayment of the debt until 2009. Troubled Company Reporter-Asia Pacific previously reported that the group, as of August 31, had debts of 181.99 billion rupiah and US$103.99 million. The remaining debt, which is still in the process of restructuring, includes 113.14 billion rupiah and US$85.81 million to foreign creditors. Meanwhile, the Indonesian Bank Restructuring Agency (IBRA), as the appointed leader of creditors approving the restructuring program, hopes that bondholders would join the creditors in the program, the report says. Holders of bonds issued by the subsidiaries of Sinar Mas Group have refused to take part in the restructuring program, which will free the debtors from paying the principal of the bonds in 10 years. ========= J A P A N ========= ALL NIPPON: R&I Assigns BBB+ Rating ----------------------------------- Rating and Investment Information, Inc. (R&I) has assigned All Nippon Airways Co.'s long-term debt rating to BBB+ issued under the shelf registration scheme. Long-term Bonds (10 Series) ISSUE: Bonds Rated Issue Date Redemption Issue Amount (mn) Unsec. Str. Bonds No. 1 Jun 11, 1997 Jun 11, 2007 Yen 35,000 Unsec. Str. Bonds No. 2 Sep 19, 1997 Sep 18, 2009 Yen 20,000 Unsec. Str. Bonds No. 3 Sep 19, 1997 Sep 19, 2017 Yen 20,000 Unsec. Str. Bonds No. 4 Mar 25, 1998 Mar 25, 2008 Yen 20,000 Unsec. Str. Bonds No. 6 Apr 06, 1999 Apr 06, 2004 Yen 20,000 Unsec. Str. Bonds No. 7 Apr 06, 1999 Apr 06, 2007 Yen 10,000 Unsec. Str. Bonds No. 8 Jul 29, 1999 Jul 28, 2006 Yen 15,000 Unsec. Str. Bonds No. 10 Dec 16, 1999 Dec 16, 2011 Yen 10,000 Unsec. Str. Bonds No. 11 Mar 01, 2000 Mar 01, 2006 Yen 20,000 Unsec. Str. Bonds No. 12 Mar 01, 2000 Mar 01, 2010 Yen 10,000 RATIONALE: The operating environment surrounding ANA is changing significantly due to the integration of Japan Airlines Co., Ltd., and Japan Air System Co., Ltd. On domestic routes, there are concerns over deterioration in profit due to fare cutting in the short term. However, in the medium term there are expectations of an easing in competitive conditions due to the decrease in the number of carriers and an increase in ANA's share of the high profitability major routes. Therefore, it is likely that ANA will continue to maintain a solid operational base in the future. On international routes, the company will remain unable to breakout of a structural deficit although profit looks set to improve due to the concentration of management resources on Narita Airport, which is anticipated to see a boom in demand. According to Wright Investor's Service, at the end of 2002, All Nippon Airways Co Ltd (ANA) had negative working capital, as current liabilities were 444.86 billion yen while total current assets were only 407.83 billion yen. DAIWA SECURITIES: Swings Back Into The Black -------------------------------------------- Daiwa Securities Group Inc posted consolidated net profit of 7.22 billion yen in the April-September first half of fiscal 2002, a reversal from a net loss of 131.58 billion yen a year earlier. According to Kyodo News, the profit was due largely to a cut in sales and general administrative expenses which helped boost a consolidated pretax profit sharply from 1.18 billion yen a year earlier to 15.57 billion yen, the major brokerage house said. More than 20 clients of Daiwa Securities Group Inc. have pending lawsuits against the Company, seeking more than 300 million yen in compensation, claiming they were cheated of millions of yen. The plaintiffs claim a former employee at a Nagoya branch of the major brokerage house encouraged clients to invest from 1997 to 2001, stressing the brokerage guaranteed her special arrangements to purchase shares in blue chips cheaply. ISUZU LIMITED: Withdraws From Joint SUV Production in US -------------------------------------------------------- Struggling Japanese automaker Isuzu Motors Ltd said Friday it will pull the plug on its unprofitable sport utility vehicle (SUV) joint venture in the United States with Fuji Heavy Industries Ltd as part of its three-year management plan. Kyodo News says Isuzu will be the first Japanese automaker to withdraw from auto production in the U.S. KENWOOD CORPORATION: Halts Mobile Phone Production This Month ------------------------------------------------------------- Japan's Kenwood Corp. (J.KNW or 6765) will stop producing mobile phones at the end of October, the Nihon Keizai Shimbun Saturday reported in its Saturday morning edition, citing company sources. The firm will halt output at a subsidiary in Yamagata Prefecture and turn the unit into a production base for industrial wireless equipment. The subsidiary plans to reduce its work force of nearly 400 to about 150 through a voluntary retirement program and other means. Kenwood aims to put its restructuring efforts on track by concentrating on areas where it retains competitiveness, such as in-car devices. The Yamagata subsidiary is a midsize manufacturer of mobile phones for J-Phone Co., with an output of about 700,000 units in fiscal 2001. Although the firm posted about Y1 billion in operating profit on an estimated Y40 billion in sales that year, the firm believes expanding earnings in the future will be difficult. Kenwood entered the mobile phone business in the U.S. in 1991, and launched Japanese sales in 1994. It had about Y17 billion in liabilities in excess of assets in the year ended March, but plans to eliminate the negative net worth through financial assistance from Asahi Bank, its main bank, by the end of this year. It will implement sweeping cost cuts to speed its earnings recovery. The move will mark the first exit of a leading brand from the mobile phone market. According to the Japan Electronics and Information Technology Industries Association, domestic shipments of mobile phone handsets, including cellular phones and personal handyphone system devices declined 1.8% from a year earlier to 50.77 million units in fiscal 2001, registering the first year-on-year fall. Despite the shrinking market, manufacturers are forced to make a growing amount of research and development investments due to the rapid sophistication of handsets. Earlier this month, shares of Kenwood Corporation increased 24 percent after the receiving 27 billion yen ($221 million) in financial assistance through bank loans and a sale of shares to investors, TCRAP reports. In August, ailing audio equipment maker Kenwood Corporation discussed with its creditors a financial assistance deal worth Y20B, centering on a debt-for-equity swap, including Asahi Bank Ltd. As of March 2002, the firm's debt exceeded its assets by 17 billion yen. SUMITOMO MITSUI: Unit Revises 1H02 Financial Result --------------------------------------------------- Sumitomo Mitsui Banking Corporation (SMBC) announced Friday that its consolidated subsidiary, The Bank of Kansai, Ltd., has revised its earnings estimates for the first half of fiscal 2002 ended September 30, 2002, which was published on May 24, 2002. The Bank of Kansai, Ltd. Announces Revision of Earnings Estimates for First Half of Fiscal 2002 And Impairment of 'Other Securities' on Non-consolidated Basis. The Bank of Kansai, Ltd. announced today revision of earnings estimates for the first half of fiscal 2002 ended September 30, 2002, which was published on May 24, 2002. 1. Revision of earnings estimates (First half of fiscal 2002 ended September 30, 2002) (Consolidated) (Millions of Yen) Operating Operating Net Income Profit Income Previous estimate (A) 21,000 2,100 1,100 Revised estimate (B) 21,700 3,400 1,650 Difference (B)-(A) 700 1,300 550 Percentage change 3.3% 61.9% 50.0% (Non-Consolidated) (Millions of Yen) Operating Operating Net Income Profit Income Previous estimate (A) 16,000 1,600 800 Revised estimate (B) 16,100 2,600 1,250 Difference (B)-(A) 100 1,000 450 Percentage change 0.6% 62.5% 56.3% 2. Factors behind the revisions The core banking income is expected to hit a record high 5,200 million in the first half of fiscal 2002 thanks to a steady increase in loans to consumers (centered on housing loans) and small companies. Though the amount of impairment of securities increased due a sharp drop in the stock market, operating profit and net income were favorable as a result of a decrease in credit cost from a greater recovery of non-performing loans. The consolidated estimates were revised in line with the above revision of the non-consolidated estimates. Consolidated and non-consolidated capital ratios are expected to be approximately 8.4% and 8.5%, respectively. Estimates for the full fiscal year are being prepared and will be presented at the time of interim result announcement. 3. Impairment of 'Other Securities' The Bank of Kansai applies the mark-to-market method to marketable securities classified as 'other securities', which are defined under the Article 8-21 of the Regulations Concerning Financial Statements. Amount of impairment on such securities as of September 30, 2002 is as follows: (Millions of yen) Amount % Impairment of other securities (A) 466 Stockholder's equity as of March 31, 2002 (B) 40,877 (A)/(B) .1% Operating profit for the year ended March 31,2002 (C) 3,398 (A)/(C)13.7% Net income for the year ended March 31,2002 (D) 1,452 (A)/(D)32.1% Impairment of 'other securities' whose market values are available or can be rationally computed, such as listed securities and OTC securities, are calculated. (Reference: Unrealized Losses on Securities after Impairment) (Millions of yen) September 30, 2002 Unrealized Losses 1,273 Amount to be stated on stockholders' equity (58%) 741 According to TCR-AP, Sumitomo Mitsui Banking Corp posted an appraisal loss of 631.7 billion yen on its shareholdings at the end of June, up 130.8 billion yen from the end of March. The Company expects to post a year to March 2002 net loss of over 300 to 350 billion yen due to bad loan disposals. The bank will also revise its November forecast for the year to March 2002 losses from non-performing loan write-offs to Y1.6 trillion from 1 trillion. ========= K O R E A ========= CHOHUNG BANK: Selects Successful Bidder by Next Month ----------------------------------------------------- The government plans to select the successful bidder for Cho Hung Bank by around the end of November, by short-listing four of the eight bidders, the Digital Chosun said Friday. A total of 15 domestic and foreign financial organizations had earlier expressed intent to bid for the government-owned bank, but only eight actually submitted a bid. An official at the Ministry of Finance and Economy said that, provided that the bidders' offers for the acquisition run in favor of the seller, the government would not hesitate to sell its total 80.01 percent stake in the bank. =============== M A L A Y S I A =============== BANK NIAGA: Commerce Bank Expected to Buy 51% Stake Yesterday ------------------------------------------------------------- Commerce Asset Holding Bhd, which is the only qualified bidder for the 51% stake in PT Bank Niaga, was expected yesterday to make a decision on the proposed sale and purchase agreement. According to AFX-Asia, the proposal was presented before the officials of Commerce Asset more than a week ago, but a decision could not be made right away. The Indonesian Bank Restructuring Agency, however, said a decision was likely yesterday. Troubled Company Reporter-Asia Pacific could not confirm as of press time whether a deal had indeed been reached. Commerce Asset passed a "fit and proper" test - an examination of the bidder's suitability conducted by Bank Indonesia - prior to negotiations for a final sale and purchase deal, having been the only bidder invited to take the test. Commerce Asset bid 26.5 rupiah per share for a total of 1.057 trillion rupiah, representing a price to book value level of 1.45 times. The government currently owns around 97 percent of Niaga. BERJAYA SPORTS: Unit Buys 8% Irredeemable Convertible Stocks ------------------------------------------------------------ The Board of Directors of Berjaya Sports Toto Berhad wishes to inform that its wholly owned subsidiary, FEAB Properties Sdn Bhd has purchased ICULS in the company as follows: (1) Date of Purchase : 28 October 2002 (2) Number of ICULS Purchased : 128,000 (3) Minimum price paid for each ICULS : 2.84 (4) Maximum price paid for each ICULS : 2.87 (5) Total consideration paid : RM365,899.05 (6) Total number of ICULS held to-date : 4,710,000 (7) Cumulative consideration : RM13,311,792.15 paid to-date The Company has obtained the necessary approvals for the above purchase of ICULS up to an amount not exceeding RM1.2 billion. Details on the ICULS purchase were disclosed in the Company's Circular to Shareholders dated 5th April 2002 and the Abridged Prospectus relating to the Rights Issue of ICULS dated 20th June 2002. FW INDUSTRIES: Obtains Wind Up Petition Restraining Order --------------------------------------------------------- FW Industries Berhad wishes to make these announcements: (1) That the Company has on 25th October 2002 been served with a Petition for Winding-Up presented by Messrs Ann Joo Metal Sdn. Bhd. (Company No:260316-P) at the Shah Alam High Court and scheduled to be heard on 7th January 2003; (2) That the Company has also on 25th October 2002 been served with an Ex-Parte Order of Court dated 17th October 2002 appointing Mr. Anthony Joseph Skelchy as the appointed Provisional Liquidator; (3) That the Company has on 28th October 2002 obtained an Ex- Parte Order of Court dated 28th October 2002 to stay all proceedings pertaining to the said Petitions including but not limited to the exercise of the powers and duties of Mr. Anthony Joseph Skelchy, the Provisional Liquidator for the Company pending the final disposal of the Company's Application to set aside the said Petition and the said Order of Court dated 17th October 2002; (4) That the Company's said Application to set aside the said Petition and the said Order of Court dated 17th October 2002 has been fixed for hearing on 21st November 2002; and (5) That the Company shall keep the public informed on further development and outcome of the said matters. MWE HOLDINGS: Sells 55% Stake in Loss-making Skypark ---------------------------------------------------- The Board of Directors of MWE Holdings Berhad wishes to announce that the Company has on 28 October 2002 entered into a Share Sale Agreement with Mr Khor Chin Tian to dispose to the latter its shareholdings of 550,000 ordinary shares of RM1.00 each in Skypark for a cash consideration of RM167,750/-. Skypark is a 55% owned subsidiary of MWE and the authorised and paid-up share capital of Skypark is RM1,000,000/-. Arising from the disposal, Skypark has ceased to be a subsidiary of MWE on 28 October 2002. RATIONALE OF THE DISPOSAL The disposal is in line with the Group's plan to dispose of companies which are either inactive, loss-making and non-core to the Group's business. FINANCIAL EFFECT OF THE DISPOSAL The disposal is not expected to have any material effect on the Group's earnings and the net tangible assets for the financial year ending 31 December 2002. INTEREST OF DIRECTORS AND SUBSTANTIAL SHAREHOLDERS None of the directors nor substantial shareholders of the Company and persons connected to the directors or substantial shareholders has any interest, direct or indirect in the said disposal. TELEKOM MALAYSIA: Finalizes Deal to Ship Mobile Unit to Celcom -------------------------------------------------------------- Telekom Malaysia announced yesterday that it had firmed up its decision to sell its wholly owned mobile phone unit, TM Cellular Sdn. Bhd., to Celcom (Malaysia) Bhd. An agreement to this effect was supposed to be signed yesterday, as well, Dow Jones Newswires reported. "A full announcement on the terms of the Proposed Disposal will be made by Telekom Malaysia after the signing of the said agreement," the company said in a statement to the Kuala Lumpur Stock Exchange. No other details were provided, Dow Jones said. TM Cellular is a loss-making unit of Telekom Malaysia, the country's most dominant telecom player. Celcom is the cellular phone arm of Technology Resources Industries Bhd (TRI), a struggling telecom that is currently in the middle of a lawsuit seeking the recovery of remuneration packages illegally awarded to three former directors. Under a merger timetable, the two parties are required to sign a sale and purchase agreement by October 29. * KLSE Threatens to Delist Troubled Listed Companies by Dec. 31 --------------------------------------------------------------- The Kuala Lumpur Stock Exchange has issued an ultimatum of until December 31, 2002 for distressed public companies to stabilize their financial positions or else face delisting. The deadline for PN4 companies was issued last week, according to AFX-Asia. A PN4 company is defined by the KLSE as a financially distressed firm with negative shareholder funds. "Who would buy or take over such a company at this time?" Megat Najumuddin asked at a press briefing after a presentation on corporate governance. He is the president of the Malaysian Institute of Corporate Governance. "Companies should practice self-regulation instead of depending on authorities to enforce corporate governance rules," he said, adding that the law enforcement process needs to be more efficient to ensure that corporate offenders are brought to justice. "Justice must be seen to be done... Investors must know that wrongdoers are being prosecuted... Our enforcement process is taking too long and wrongdoers are getting away," Megat Najmuddin said in support of KLSE's deadline. ===================== P H I L I P P I N E S ===================== BENPRES HOLDINGS: Unit Hikes Capital ------------------------------------ The Securities and Exchange Commission has approved the increase in authorized capital stock of First Philippine Infrastructure Development Corp., from P1 billion to P2.5 billion, the Philippine Star said Saturday. First Phil. Infrastructure is a 30-percent-subsidiary of Benpres Holdings Corp. Documents filed with the SEC showed the capital hike was intended to finance additional working capital requirements, the report said. Organized in 1994, FPIDC operates an eight-kilometer tollroad that is envisioned to connect the Subic Bay freeport area to the North Luzon Expressway. FPIDC has a 76.3-percent stake in Manila North Tollways Corp., which will undertake the rehabilitation, expansion and operation of the North Luzon Expressway. Its other partners in MNTC are Egis Projects SA of France (10 percent), Leighton Australia Ltd. (10 percent) and the Philippine National Construction Corp. (3.7 percent) MNTC's tollroad project involves the widening of the existing 84-kilometer North Luzon Expressway, construction of new interchanges, upgrading of existing interchanges, and installation of a new toll collection system. It is estimated to cost $375 million, to be financed with 36 percent equity and 64 percent debt. In July 2001, MNTC secured a $254-million loan from the Asian Development Bank, International Finance Corp., Export Finance and Insurance Corp., SEK of Sweden, and a consortium of foreign banks. The project benefits from having experienced tollroad companies as sponsors. PNCC is a government corporation that has the franchise for both the North Luzon Expressway and the South Luzon Expressway. Egis, on the other hand, developed and operates more than, 6,000 kilometers of toll expressways in Europe. The three sponsor corporations will form an operations and maintenance company for the operation of the tollroad. Construction work on the project had incurred delays due to the government's failure to acquire the necessary right-of-way (ROW) for the widening of the road. To eliminate the need for it to put in additional equity in the tollroad company and to raise funds to pay off maturing debts, Benpres is looking into the possibility of unloading its stake in MNTC. Benpres said earlier that the sale of its 30-percent equity participation in MNTC might take place soon since discussions are now ongoing with unit First Philippine Holdings Corp. Other assets Benpres may divest to bring down overall debt to a more manageable level are interests in Sky Vision's Beyond Cable and Rockwell Land Corp. Benpres said the divestment of its 24.5-percent stake in Rockwell might take a while due to the prevailing slump in the real estate market. Angel Ong, Benpres vice-president for finance, said earlier the company expected to raise about $200 million from the sale of shares in its subsidiaries. Benpres is seeking to reschedule repayments of its $596.9 million (approximately P30.9 billionm) in debts in order to execute an orderly divestment of certain assets. Credit Lyonnais was appointed as financial adviser to assist Benpres in the debt restructuring program of its troubled subsidiaries and address means to strengthen the group's capital structure. It was also tasked to search for a new investor in Benpres' water utility unit Maynilad Water Services Inc. ================= S I N G A P O R E ================= CHARTERED SEMICONDUCTOR: Clarifies 4Q02 Share Count and EPS ----------------------------------------------------------- Chartered Semiconductor Manufacturing announced a correction to the fourth quarter 2002 share count and loss per American Depositary Shares (ADS) guidance, which was provided in its third quarter earnings release earlier today. The figure provided in the release earlier today, 260 million American Depositary Shares (ADSs), was incorrect. The corrected fourth quarter 2002 guidance for share count and for loss per ADS is: - Average share count for EPS calculation: approximately 241 million ADSs. - Loss per ADS: approximately $0.47 to $0.49 including a one- time charge of approximately $0.02 per ADS associated with workforce re-sizing. CHARTERED SEMICONDUCTOR: Stays in The Red, Warns of More Losses --------------------------------------------------------------- Chartered Semiconductor Manufacturing yesterday announced its seventh straight quarter of losses and warned that its fourth quarter outlook would be 'considerably weaker' than what it had earlier advised. It added that it was laying off 300 staff after reassessing the pace of recovery in the global semiconductor industry. For the third quarter ended Sept 30, Chartered's sales rose by a hefty 63 per cent from the previous corresponding period to US$129.5 million. The Q3 revenue was up 1.6 per cent compared with the second quarter. The Q3 US$89.4 million loss, however is within forecast. On the current quarter, the world's third-largest maker of customized computer chips said growth had 'slowed significantly' since mid-September, as customers worked through their inventory positions. The weaker outlook is expected to depress Q4 revenue by 20 per cent sequentially, resulting in a Q4 net loss of US$114 million to US$117 million. Despite the downbeat forecast, Chartered's shares - among the worst performers in the local market - gained one cent to 94 cents yesterday with 14.6 million units traded. Its Q3 loss per share came in at six US cents on a diluted basis, down from seven US cents in Q3 2001. But the wafer foundry said its capacity utilization rate - which gauges the proportion of production capacity used - could slide into the 'mid-30s'. This moves Chartered further away from the estimated 70 per cent utilization target needed to get back in the black. The utilization rate in Q3 was 39 per cent. The company's vice-president & chief financial officer, George Thomas, said: 'Chartered's outlook for Q4 2002 is considerably weaker than projections earlier in the year, driven by both a general delay in the semiconductor market recovery and by a significant decline in our computer segment revenues, where we believe some customers are working through excess inventory which will probably take a couple of quarters to correct.' Giving its take on Chartered, Kim Eng Ong Asia said: 'The results show no fundamental improvement for the company. Competitive pressures remain extreme and we expect losses to continue to mount.' The brokerage is maintaining its 'underperform' call on Chartered's stock. But JM Sassoon analyst Terence Wong painted a different picture. 'Chartered's balance sheet has been strengthened considerably after the rights offering, with gross gearing falling from 0.9 times to 0.6 times,' he said. 'It will be armed with US$1.9 billion of ready funds for future investments and business expansion, which should put it in good stead when demand returns.' Chartered's president and chief executive officer, Chia Song Hwee, said the recent rights helped swell the company's cash hoard to US$1.3 billion. 'That would adequately cover our capital spending needs into 2004.' Mr Chia said Chartered wants to eventually fund its own organic growth, and this will be achieved when its eight-inch foundry Fab 6 hits full capacity production of 29,000 wafers per month, up from 12,000 to 14,000 now. EASYCALL INTERNATIONAL: AGM Set on November 28 ---------------------------------------------- The Annual General Meeting of EasyCall International Limited will be at Tianjin University of Commerce Boustead College, West of the Institute of Urban Construction, Jin Yan Road, XiQing District, Tianjin, People's Republic of China, on Thursday November 28, 2002 at 3.00 p.m. AGENDA Quorum The Chairman to confirm that a quorum was present and to declare the meeting open. Notice of Meeting The Chairman or the Secretary to the Meeting to confirm that Notice of the Meeting has been given in accordance with the Bye- Laws of the Company. Minutes The minutes of the Annual General Meeting of members held on 30 November 2001 to be read and approved. Proxies The proxy counts with regard to the following Resolutions to be taken. Annual Financial Statements Resolution 1 To receive and consider the annual financial statements, including the Directors' Report, Independent Audit Report, Statement by the Directors, Profit and Loss Account, Balance Sheet and Cash Flow Statement of the Company for the financial year ended 30 June 2002. Election of Directors Resolution 2 To elect the following persons as Directors of the Company, to serve until the next Annual General Meeting of the Company, or until their respective successors are elected or appointed: (a) Re-election of Mark Carnegie as director (b) Re-election of Wong Fong Fui as director (c) Re-election of Dov Brener as director (d) Re-election of Loh Kai Keong as director (e) Election of Chia Yew Boon as director (f) Election of John Tang as alternate director to Chia Yew Boon Appointment of Auditors Resolution 3 To appoint Messrs Deloitte & Touche of 6 Shenton Way, #32-00 DBS Building Tower Two, Singapore 068809 as Auditors of the Company for the current financial year. Any Other Business To consider any other business that may properly come before the meeting. NOTES: Eligibility to vote For the purposes of the Meeting, shares will be taken to be held by persons who are registered as members 48 hours before the appointed time for holding the Meeting. Proxies A member of the Company entitled to attend and vote at the Meeting shall be entitled to appoint not more than two persons (whether members of the Company or not) as the member's proxy or proxies, to attend and vote on the member's behalf. Where two proxies are appointed the appointments shall be of no effect unless each proxy is appointed to represent a specified proportion of the member's voting rights. If this Proxy Form is executed under a Power of Attorney, a certified copy of the Power of Attorney must be lodged at the Singapore Office of the Company with the Proxy Form. Companies which have a Common Seal, unless executing the Proxy Form by Power of Attorney, must execute the Proxy Form under Seal. Forms of Proxy must be deposited at the Singapore Office of the Company at least 48 hours before the time of the Meeting. TCRAP reported that the Group restructured its operations last year to weed out loss making operations, taking one-time charges totaling A$39.4 million (S$37.9 million). These comprised A$13.7 million (S$13.2 million) in impairment provisions against the Group's Internet network infrastructure and paging infrastructure equipment, a A$22.2 million (S$21.4 million) provision made in respect of its Thai paging operations and a A$3.5 million (S$3.4 million) charge arising from the disposal of its Indonesian paging operations. GOODPACK LIMITED: Winding Up Dormant Subsidiary ----------------------------------------------- The Directors of Goodpack Limited announced that Goodpack Limited's subsidiary, Able Agents Limited, has commenced members' voluntary winding up. Able Agents Limited, a 100 percent owned subsidiary incorporated in Hong Kong, is dormant and its winding up will not have any material impact on the net earnings per share or net tangible assets per share of Goodpack Limited for the financial year ending 31 December 2002. ISOFTEL LIMITED: Posts Notice of Director's Interest ---------------------------------------------------- Isoftel Limited posted a notice of changes in Director Au Sai Chuen's interest: Date of notice to company: 25 Oct 2002 Date of change of interest: 23 Oct 2002 Name of registered holder: Citibank Nominees (Singapore) Pte Ltd Circumstance(s) giving rise to the interest: Sale initiated by financial institution to meet obligations Shares held in the name of registered holder No. of shares of the change: 50,000 % of issued share capital: 0.022 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: 0.055 No. of shares held before change: 39,531,000 % of issued share capital: 17.272 No. of shares held after change: 39,481,000 % of issued share capital: 17.25 Holdings of Substantial Shareholder/Director including direct and deemed interest Deemed Direct No. of shares held before change: 39,531,000 25,000 % of issued share capital: 17.272 0.01 No. of shares held after change: 39,481,000 25,000 % of issued share capital: 17.25 0.01 Total shares: 39,481,000 25,000 MEDIARING.COM: Appoints Khaw Kheng Joo as CEO --------------------------------------------- MediaRing.com Limited has appointed Khaw Kheng Joo as the Chief Executive Officer of the Company with effect on November 1, 2002. Khaw has been a director of the Company since March 6, 2002 and will continue to sit on the Board as an Executive Director. Khaw was previously the Senior VP of Celestica Inc., a listed company on both the American and Canadian Stock exchanges. Celestica is one of the largest electronic contract manufacturers in the world. In Oct 2001, Celestica Inc. acquired Omni Industries and Khaw assumed his current position overseeing previous Omni Electronics entities in Singapore, Johore, Bintan, Mexico and Shanghai with a staff of about 5000. Prior to joining Omni Industries, Khaw had 26 years work experience at Hewlett Packard in various positions with his last assignment as General Manager of the Pocket PC Division. In addition to MediaRing, Khaw currently sits on the board of Total Automation, a listed company in Singapore as well as Senoko Power. He had previously served on the board of EDB. He is also a member of the advisory council for the business school of Singapore Polytechnic. 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 =============== KRUNG THAI: Will Refinance Bad Loans Due to Govt Pressure --------------------------------------------------------- Thailand's Krung Thai Bank intends to refinance bad loans owed by borrowers, who had been delinquent since the 1997 financial crisis hit the region, in an effort to boost its loan portfolio, Dow Jones Newswires said yesterday. The report said the state-owned bank is under heavy pressure from the government to expand its loan book. Bank analysts warn, though, that lending fresh funds to some of Thailand's weakest or most recalcitrant debtors is a risky strategy that could leave Krung Thai Bank with losses. It could also undermine investor interest in a public offering of shares that Krung Thai Bank is expected to launch within months, analysts told Dow Jones Newswires in separate interviews. The bank has just concluded a capital restructuring, approved by shareholders in September, in preparation for a public offering and partial privatization expected in November or by early next year. The restructuring will allow Krung Thai to repurchase 10.80 billion warrants from the Financial Institutions Development Fund (FIDF), which currently controls some 87 percent of Krung Thai, for 0.61 baht per unit, for a total of 6.59 billion baht. The restructuring reduces capital by 108 billion baht to 111.96 billion through the cancellation of 10.8 billion unissued shares reserved for the warrant exercise. The bank then reduces par value of shares to 5.15 baht from 10 baht, resulting in paid-up capital falling to 57.6 billion baht. Excess reserves and funds gained from the par value reduction will be used to wipe out accumulated losses of 76 billion baht. Krung Thai's assets at the end of August totaled 1.105 trillion baht, while total liabilities were at 1.035 trillion baht. TPI POLENE: Reverses Last Year's Q3 Gains Due to Forex Losses ------------------------------------------------------------- An undisclosed foreign exchange loss led troubled cement maker TPI Polene Plc to post a third quarter net loss despite a 7.97% increase in sales, AFX Asia reported yesterday. Net loss for the three months to September amounted to 1.38 billion baht, reversing the year-earlier profit of 5.93 billion baht. The company, however, rode on the back of a 4.04 billion- baht sales from 3.75 billion a year ago. Total consolidated revenues fell to 4.34 billion baht in the third quarter from 10.24 billion baht. EBITDA was 832 million baht and 2.03 billion baht for the third quarter and nine months, the company said. The company said there were no disposal gains or reversals of accrued default interest during the three months compared with the same period last year. In September, Judge Pichai Nilthongkham of the Thai Central Bankruptcy Court ordered creditors to meet on October 9-10 to consider two options to restructure the firm's one billion- dollar debt. The court said both sides had failed to agree during an earlier meeting to decide restructuring strategies, which reportedly included a capital hike and mortgaging some assets. Most creditors of TPI Polene, a unit of Thailand's biggest corporate debt defaulter, Thai Petrochemical Industry, want to sell the majority stake to a strategic partner, Troubled Company Reporter-Asia Pacific said in a previous report. The court had earlier suggested that a public offering should also be considered to raise capital and facilitate the restructuring of the company. On mortgage of assets, the parties agreed to work out a detailed proposal to be submitted to the official receiver. 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 ***