/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/021031.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, October 31, 2002, Vol. 5, No. 216 Headlines A U S T R A L I A LIFESTYLE PROPERTY: Campbell Agrees to Two-year Self-ban C H I N A & H O N G K O N G CHIK FAT: Petition Seeking Wind Up Set for Hearing on Nov. 13 GAMESON TRADING: HK High Court to Hear Wind Up Suit on Nov. 20 K2 PACIFIC: November Hearing on Wind Up Petition Set MANSION SURVEYORS: Wind Up Petition Hearing Set for Nov. 6 PSINETWORKS HONG: Petition Seeking Wind Up To Be Heard Nov. 13 SCRUM INTERNATIONAL: Wind Up Petition To Be Heard December 4 YEE LEE: Hong Kong High Court to Hear Wind Up Suit on Nov. 13 I N D O N E S I A ASTRA INTERNATIONAL: Nod for New Debt Plan Likely, Say Analysts J A P A N ADVANTEST CORPORATION: Bares More Job Cuts Due to Prolong Slump NISSEKI HOUSE: Mulls Bankruptcy as Condition Turns Hopeless SKYMARK AIRLINES: Abandons Share Allocation to Commerzbank AG TOSHIBA CORP.: Losses Shrink but First Half Figures Still in Red K O R E A HYNIX SEMICONDUCTOR: Govt Aid Necessary to Resuscitate Firm HYNIX SEMICONDUCTOR: Deal Over LCD Unit Hits Snag HYNIX SEMICONDUCTOR: Hefty Capital Cut Expected in Debt Plan KT CORPORATION: Slapped with 10-day Business Suspension M A L A Y S I A L&M CORPORATION: Liquidator Appointed for L&M Agencies RAHMAN HYDRAULIC: Hearing on Originating Summons Reset SCK GROUP: Abandons Present Restructuring Plan P H I L I P P I N E S NATIONAL POWER: Takes US$250 BB Loan from Four Foreign Banks NATIONAL POWER: To Propose New Round of Power Rate Hikes S I N G A P O R E CHINA MERCHANTS: Issues Substantial Shareholders' Notice CHINA MERCHANTS: Issues Notice Of Shareholder's Interest Change CHINA MERCHANTS: Issues Notice of Shareholder's Interest Change CHINA MERCHANTS: Issues Notice of Shareholder's Interest Change KIM ENG: Liquidation of Subsidiary Won't Have Material Effect KIM ENG: Notifies of Changes in Shareholder's Deemed Interest KIM ENG: Notifies of Changes in Shareholder's Deemed Interest MENTOR MEDIA: Updates Exchange of Banta Takeover Proposal NEPTUNE ORIENT: Issues Substantial Shareholder's Interest Notice NEPTUNE ORIENT: Issues Substantial Shareholder's Interest Notice T H A I L A N D THAI AIRWAYS: Fourth Quarter Earnings Down Due to High Fuel Cost - - - - - - - - ================= A U S T R A L I A ================= LIFESTYLE PROPERTY: Campbell Agrees to Two-year Self-ban -------------------------------------------------------- The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking from Robert Leslie Campbell of McKinnon, Melbourne, the sole director of Bell's Financial Services Pty Ltd. Mr. Campbell has given an undertaking that he will not carry on a financial services business (within the meaning of the Corporations Act 2001) with respect to financial products including shares, managed investment schemes and other similar investment products, for two years. Mr. Campbell has also agreed to complete courses in relation to ethics, compliance and investment planning prior to applying for an Australian Financial Services License (AFSL), or applying to a holder of an AFSL to act as a representative of such a license holder. The enforceable undertaking follows an ASIC investigation into Mr. Campbell and his company's part in promoting investments in the Melbourne-based Lifestyle Property Group, a failed property development and marketing company. In August 2000, ASIC successfully applied to the Federal Court for the appointment of a liquidator to 54 companies within the Lifestyle group. In October 2002, Jon McKenney, a former managing director of the company, and John Caust, a former employee, were sentenced to a total of seven years jail after pleading guilty to charges brought by ASIC, relating to their roles in obtaining $5,466,970.72 from investors in residential development projects undertaken by the Lifestyle group. ASIC found that Mr. Campbell or Bell's Financial Services breached the Corporations Act by: (i) giving investment advice to clients without being appropriately licensed; (ii) marketing securities recommendations without a reasonable basis, and (iii) failing to disclose to clients the commissions or fees that Bell's Financial Services would receive as a result of their investment in Lifestyle Group Property Development Partnerships. "ASIC will take action to protect investors from advisers who are not appropriately licensed, and who fail to meet their legal duties and obligations," ASIC's Director Enforcement Jamie Orchard said. ================================ C H I N A & H O N G K O N G ================================ CHIK FAT: Petition Seeking Wind Up Set for Hearing on Nov. 13 ------------------------------------------------------------- The High Court of Hong Kong will hear the petition seeking the wind up of Chik Fat Hong Development Trading Company Ltd on November 13, 2002 at 10:00 in the morning. Tang Kiu Leung of Room 501, Heng Chun House, Tin Heng Estate, Tin Shui Wai, New Territories, Hong Kong filed the petition on September 4, 2002. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need notify in writing Tam Lee Po Lin, Nina, which holds office at the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. GAMESON TRADING: HK High Court to Hear Wind Up Suit on Nov. 20 -------------------------------------------------------------- A petition seeking the wind up of Gameson Trading Company Limited is scheduled for hearing before the High Court of Hong Kong on November 20, 2002 at 9:30 in the morning. Lau Kam Sau of Flat D, 31/F., Hong Yan Court, Sun Hing Garden, Tai Po, New Territories, Hong Kong lodged the petition on September 17, 2002. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties may attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office at the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. K2 PACIFIC: November Hearing on Wind Up Petition Set ---------------------------------------------------- K2 Pacific Limited faces a wind up petition, which will be heard by the High Court of Hong Kong on November 27, 2002 at 9:30 in the morning. Tong Hiu Lam of Flat F, 16/F., Block 24, City One, Shatin, New Territories, Hong Kong lodged the petition on September 24, 2002. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office at the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. MANSION SURVEYORS: Wind Up Petition Hearing Set for Nov. 6 ---------------------------------------------------------- The High Court of Hong Kong is scheduled to hear on November 13, 2002 at 10:30 in the morning the petition seeking the wind up of Mansion Surveyors Limited. Siu Chi Chiu of Flat K, 23/F., Block 2, Elegance Garden, Tai Po, New Territories, Hong Kong brought the petition on September 6, 2002. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties may appear during the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office at the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. PSINETWORKS HONG: Petition Seeking Wind Up To Be Heard Nov. 13 -------------------------------------------------------------- The High Court of Hong Kong will hear on November 13, 2002 at 10:00 in the morning the petition seeking the wind up PSINetworks Hong Kong Limited. by Reach Networks Hong Kong Limited whose registered office is located at 18th Floor, Telecom House, 3 Gloucester Road, Wanchai, Hong Kong brought the petition on August 29, 2002. Clifford Chance represents the petitioner. Creditors and other interested parties may attend the hearing. They only need to notify in writing Clifford Chance, which holds office at the 29th Floor, Jardine House, One Connaught Place, Central, Hong Kong. SCRUM INTERNATIONAL: Wind Up Petition To Be Heard December 4 ------------------------------------------------------------ A petition seeking the wind up of Scrum International Limited is scheduled for hearing before the High Court of Hong Kong on December 4, 2002 at 9:30 in the morning. Kawamura Co., Limited (in Creditors' Voluntary Winding-Up) whose registered office is situated at Room 1005, Allied Kajima Building, 138 Gloucester Road, Wanchai, Hong Kong filed the petition on October 3, 2002. Messrs. Bosco Tso & Partners represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Messrs. Bosco Tso & Partners, which holds office at the 8th Floor, Luk Hoi Tong Building, 31 Queen's Road, Central, Hong Kong. YEE LEE: Hong Kong High Court to Hear Wind Up Suit on Nov. 13 ------------------------------------------------------------- A petition seeking the wind up Yee Lee Yuen Gas Engineering Company Limited is scheduled for hearing before the High Court of Hong Kong on November 13, 2002 at 9:30 in the morning. Ng Siu Pong of Room 801, Yiu Shun House, Yiu On Estate, Ma On Shan, New Territories, Hong Kong brought the petition on August 29, 2002. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office at the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. ================= I N D O N E S I A ================= ASTRA INTERNATIONAL: Nod for New Debt Plan Likely, Say Analysts --------------------------------------------------------------- Astra International is expected to easily get approval for its revised debt-restructuring plan, says AFX-Asia, citing the much more realistic repayment terms in the new proposal. Given that Astra has not asked for a debt haircut and is looking to extend the repayment period by just three years -- well below the market's expectations -- the company should win support from creditors at next months' meeting, the news agency said. Astra needs approval from 67 pct of creditors at a meeting next month in order to go through with the restructuring of its US$726 million and 881 billion rupiah in outstanding debt. It has received preliminary support from an umbrella committee comprising up to 40% of its creditors, most of whom are Japanese banks, the report said. "The market is optimistic that the restructuring process will proceed to a positive outcome" by year's end, Samuel Securities analyst Denny Lesmana told AFX-Asia in an interview. "Astra has a good track record and it is not demanding a haircut or discount for the debt, so all creditors are expected to approve the debt restructuring proposals," he said. Citing an unidentified insider, Mr. Lesmana said the terms agreed to by the creditors' committee include yearly repayments of U*S$93 million and 111 billion rupiah. This reflects a much more realistic approach than the original agreement signed in 2000, which overstated Astra's operating outlook. He has a year-end target on Astra of 2,500 rupiah per share, adding it could reach its fair value of 4,400 next year if overall market sentiment improves. In a separate interview, GK Goh analyst Chengwy Karlan, who has a fair value rating on the stock of 4,550 rupiah, told AFX-Asia that Astra's show of good faith in cooperating with creditors so far will help convince them it is committed to paying them back. He expects the new restructuring terms to cut the annual "bullet" payment in half to US$100 million. ========= J A P A N ========= ADVANTEST CORPORATION: Bares More Job Cuts Due to Prolong Slump --------------------------------------------------------------- Layoffs at Advantest Corp are not over yet. The company announced recently that it will slash its group workforce by 10 percent by March next year. AFX-Asia says the latest redundancy plan follows a cut of 840 jobs implemented in fiscal 2001. In a statement, the company said the plan is motivated by the need to slash fixed costs further amid slumping sales of testing devices and measuring equipment for the telecommunications industry. It said the firm's group net loss for the current fiscal year may widen from an initial forecast of a 3.3 billion yen, due to an expected increase in retirement benefit payments from a voluntary retirement program. To achieve the payroll cut, Adventest will consider natural attrition for about 160 jobs, termination of contracts with temporary workers and implementation of a voluntary retirement program for some permanent employees, the report said. The company expects the previous downsizing to trim about 10 billion yen in fixed costs in the current fiscal year, including 5 billion yen in personnel expenses. But it believes additional cost-cutting is needed amid the prolonged high-tech slump and worse-than-expected sales of measuring equipment to telecom firms. The report says the company will also withdraw from production of devices used to examine the inside of semiconductors with electronic beams. Annual sales of the devices have been under 1 billion yen and are unlikely to grow. The company will work out restructuring measures by the end of this month, including possible withdrawals from other business divisions and products, the report added. NISSEKI HOUSE: Mulls Bankruptcy as Condition Turns Hopeless ----------------------------------------------------------- Struggling midsize prefabricated house builder, Nisseki House Industry Co., has given up hope of ever stabilizing its operations and is now seeking court protection, says Japan Today. The company is expected to file a rehabilitation plan with the Tokyo District Court within the week. Nisseki House is the second listed house builder to go under this year. Shokusan Jutaku Sogo Co, a builder of custom-made houses, went bust on January 13 with unconsolidated liabilities of 13.5 billion yen, the paper said. SKYMARK AIRLINES: Abandons Share Allocation to Commerzbank AG ------------------------------------------------------------- Loss-making Skymark Airlines will not push through with its plan to raise some 3 billion yen via an issuance of new shares through a third-party allocation, Japan Today said yesterday. The airline had previously planned to allocate the new shares to the Singapore branch of Commerzbank AG. The budget airline said the cancellation of the third-party allocation, decided during a recent special board meeting, was due to the broken coordination with Commerzbank (South East Asia) Ltd, which failed to meet a deadline for remittance. Last month, Troubled Company Reporter-Asia Pacific said the airline had net losses of 1.65 billion yen in the three months to July due to disappointing traffic during the soccer World Cup and a large drop in cargo operations. Although revenue for the quarter grew 7.3 percent to 10.1 billion yen, operational profits declined by more than 500 million yen to 1.58 billion yen. Playing the biggest spoiler was the cargo operations, which fell 51.1 percent to 95 million yen from a year ago. The report said the much-anticipated windfalls from the month-long World Cup, which ended June 30, did not materialize. Passenger traffic for June was the worst so far for the current business year to October. Citing Wright Investor's Service, TCR-AP bared that at the end of 2001, Skymark Airlines Co., Ltd. had negative working capital, as current liabilities were 4.17 billion yen while total current assets were only 1.47 billion yen. TOSHIBA CORP.: Losses Shrink but First Half Figures Still in Red ---------------------------------------------------------------- Toshiba Corp. again ended in red in the first half to September, although its losses have markedly shrank. In its consolidated earnings report, based on U.S. accounting rules, Toshiba said it posted a net loss of 26.41 billion yen, down from a loss of 123.14 billion yen a year earlier, and a pretax loss of 43.81 billion yen, down from 196.55 billion yen. Sales rose 5 percent to 2.63 trillion yen in the first half thanks to a strong performance in the digital-media sector, including personal computers and video equipment, and the electronic-device sector, which includes audiovisual equipment, digital cameras and liquid-crystal displays. On an unconsolidated basis, Toshiba posted a net profit of 47.11 billion yen, marking a turnaround from a loss of 101.42 billion yen a year ago, due largely to a special profit of 108.7 billion yen that the firm posted after returning a portion of the employee pension funds it has been managing and paying on behalf of the state to the government. For the full fiscal year, Toshiba forecasts a group net profit of 23 billion yen and a group pretax profit of 40 billion yen on sales of 5.65 trillion yen. In fiscal 2001, the company logged a group net loss of 254.02 billion yen and a group pretax loss of 376.69 billion yen on sales of 5.39 trillion yen. Just like the previous year, the company will skip an interim dividend payment. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Gov't Aid Necessary to Resuscitate Firm ------------------------------------------------------------ The only way for Hynix Semiconductor to fully recover is for the government to inject money into the troubled chipmaker, says Lee Duk-hoon, president of Woori Bank, one of the firm's main creditors. "There are no other ways but an injection of government money for survival of Hynix," Mr. Lee said in an interview with Dong-a Ilbo daily. "It's difficult for creditors alone to normalize [the company's operations]." Mr. Lee said Woori Bank, Korea Exchange Bank and Chohung Bank have set aside about 80% of their exposure to Hynix as loan loss reserves, indicating that recovery of the loans is difficult. HYNIX SEMICONDUCTOR: Deal Over LCD Unit Hits Snag ------------------------------------------------- A plan to ship TFT-LCD subsidiary, Hydis, to China's Beijing Orient Electronics group has hit a major roadblock, reports The Chosun Ilbo. An official of Hynix Semiconductor's creditor group told the paper Tuesday that the Chinese company requested that the Korean creditors extend a US$300 million loan facility for the sale deal, but creditors are not willing to make the loan. The requested loan accounted for two-thirds of US$450 million for the acquisition and operation of the display unit. The acquisition alone is estimated at 380 million won. The deal was announced last month and its conclusion was originally expected by the end of November. The subsidiary is considered the largest in the group. The Hynix LCD operation in Icheon, Gyeonggi Province, has been rolling out 3 million LCD units a year and employs about 1,500 workers. The operation's sales for the first half of this year reached 460 billion won, for an operational profit of 74 billion won, the paper said. The Chinese group has already invested in Korea. Beijing Orient Electronics, Hynix and Semicon Engineering jointly launched in Korea an STN-LCD maker, called Hyundai LCD, earlier this year. The Chinese firm contributed a 45-percent stake to the joint venture, Semicon 35 percent, Hynix 15 percent, and the staff of Hyundai LCD, 5 percent, the report added. HYNIX SEMICONDUCTOR: Hefty Capital Cut Expected in Debt Plan ------------------------------------------------------------ A capital write-down at a ratio greater than 20:1 will likely be urged by creditors of troubled chipmaker Hynix Semiconductor, The Korea Herald said yesterday. Aside from this capital reduction, it is also widely expected that the turnaround plan prepared by financial adviser Deutsche Bank will contain a proposal for a debt-for-equity swap. KT CORPORATION: Slapped with 10-day Business Suspension ------------------------------------------------------- KT Corp., the country's largest fixed-line carrier and broadband service provider, along with three other mobile carriers, has been slapped with a business suspension order by the Korea Communications Commission, The Korea Herald said Tuesday. The order is considered the harshest ever against the country's booming mobile and broadband industries, the report said. The suspension, however, covers only all activities related to attracting and accepting new subscribers during the suspension period, which ranges between 10 and 30 days. According to a commission official, the duration of the suspension will depend on the market position of telecom operator. In this case, SK Telecom, the country's largest mobile carrier, will get the maximum 30-day business suspension. KTF, the second largest wireless service provider, and LG Telecom, ranked third, will suffer a 20-day business suspension each, the report said. KT Corp. will get the 10-day suspension. The report says the penalty is for violations of a ban related to handset subsidies. Which company will be first ordered to stop its operation of attracting new subscribers is up to Information and Communication Minister Lee Sang-chul, the report said. Although an exact timetable is hard to predict, the first suspension order would proceed in early November. The report says SK Telecom has complained that it is unfair for the government to set the degree of suspension according to the market share rather than the actual number of violations. SK Telecom's market share is 53 percent, KTF 32.3 percent and LG Telecom 14.7 percent. The report says LG Telecom's handset subsidy violation case actually totaled 3,865, topping the list. The number of violations by KTF and SK Telecom were 3,185 and 1,978, respectively. Up until recently, the commission only placed a huge sum of fines on mobile carriers for offering illegal handset subsidies. SK Telecom has paid a total of 17.1 billion won in fines, followed by KTF (14.15 billion won), LG Telecom (7.13 billion won) and KT (2.21 billion won), the report says. The strict ban on handset subsidies formally went into effect in May 2000. Korea is one of the few countries where handset subsidies, part of marketing activities by private firms, are formally banned. The peculiar measure came after three mobile carriers had engaged in excessive marketing by offering too many handset subsidies to stay ahead in the race to attract new customers. Ironically, such reckless marketing and handset subsidies lowered the cost for signing up for mobile phone service, which resulted in the exponential growth in the number of subscribers over the past couple of years, the report says. There are now more than 31 million mobile phone users, enjoying a variety of wireless data and Internet services, including reliable voice calls that are based on CDMA (code division multiple access) technology developed by U.S.-based Qualcomm Inc. =============== M A L A Y S I A =============== L&M CORPORATION: Liquidator Appointed for L&M Agencies ------------------------------------------------------ The Special Administrators of L&M Corporation (M) Bhd (L&M) hereby announce that on October 22, 2002, L&M Agencies Sdn Bhd (LMA), a subsidiary of L&M was wound up by the High Court of Malaya under the provisions of the Companies Act 1965 and the Official Receiver has been appointed as Liquidator. This announcement is dated 29 October 2002. RAHMAN HYDRAULIC: Hearing on Originating Summons Reset ------------------------------------------------------ Further to the Company's announcement dated September 25, 2002, the Company wishes to announce that the Learned Judge has adjourned the hearing to strike out the Originating Summons by Speed Operations Sdn. Bhd. & Anor to January 14, 2003. Any material development on the subject matter will be announced in due course. SCK GROUP: Abandons Present Restructuring Plan ---------------------------------------------- Aseambankers Malaysia Berhad on behalf of SCK, wishes to announce that the extension of time granted by the Securities Commission to SCK for the completion of the Restructuring Scheme had lapsed on 27 October 2002. In view of the unfavorable market conditions, the Company has decided not to proceed further with the abovementioned Restructuring Scheme. The Company is currently in the midst of formulating a new restructuring scheme and announcement in relation thereto will be made in due course. ===================== P H I L I P P I N E S ===================== NATIONAL POWER: Takes US$250 BB Loan from Four Foreign Banks ------------------------------------------------------------ Four foreign lenders have responded to the call of National Power Corporation to provide it with a one-year US$250 million bridge loan. According to the Business World, Citibank NA/Salomon Smith Barney Kong Kong Ltd., Credit Lyonnais, Standard Chartered Bank and Sumitomo Mitsui Banking Corp. will provide $62.5 million each for the loan facility. At the same time, they're inviting other banks to grant Napocor additional loan. The banks said the bridge loan is guaranteed by the Philippine government. The loan facility was launched Tuesday to a select group of local and foreign financial institutions. It bears interest of 1.10% per annum over London Interbank Offered Rate (LIBOR) for the first six months and 1.3% per annum over LIBOR for the remaining life of the facility. Obligations of Napocor may be transferred in full to the Power Sector Assets and Liabilities Management Corp. (PSALM) -- the agency created to manage the sale, disposition and privatization of Napocor's generation assets, liabilities and certain contracts with independent power producers, real estate and other disposable assets, the report said. Napocor's power plants accounts for 43% of the country's total power production. PSALM's planned $750-million bond issuance was earlier pushed back to November from the earlier target of mid-October due to poor market conditions. PSALM had planned for the issuance of $500 million worth of dollar-denominated bonds, which will be partially backed by multilateral firm Asian Development Bank, and $250 million worth of yen-denominated bonds. Both have a maturity of 20 years. The planned $750-million bond float will raise half of the power firm's $1.5-billion funding requirement for the month. In January, the government lent Napocor $250 million from the sale of global bonds that month. A month later, the government lent Napocor another $500 million, Business World said. NATIONAL POWER: To Propose New Round of Power Rate Hikes -------------------------------------------------------- Loss-making government-owned National Power Corporation (Napocor) is preparing another electricity price increase petition, which will be submitted to the Energy Regulatory Commission, Business World reported yesterday. In an interview with the paper, Napocor vice-president and general counsel Rainier B. Butalid said the new petition will be filed even as the old petition, which was supposed to take effect late last month, has yet to be implemented. A restraining order has suspended the application of the rates in this old petition. Mr. Butalid says filing a new petition has become necessary because the old petition had used 2000 figures. He said the new pricing proposal will mitigate the huge projected losses to be incurred once it uses rates approved previously by the commission. Mr. Butalid said the new petition will propose "more realistic and relevant" rates for the power firm. "We have decided to file with the ERC a new rate petition based on 2002 figures, rather than on 2000 figures which were used as basis for the old application," he told the Business World. In its decision on Napocor's rate unbundling application issued on June 26, the commission had ordered Napocor to cut its electricity price by seven centavos per kWh starting September 26. Under the power sector reform law, Napocor must unbundle or detail its electricity price to make it more transparent. In its June 26 decision, the commission pegged Napocor's new generation charge at PhP2.48/kWh for Luzon; P3.20/kWh for Visayas; and PhP1.44/kWh in Mindanao, the report said. Last September 6, the commission revised its previous decision and pegged Napocor's generation charge at PhP2.19/kWh in Luzon; PhP2.08/kWh in Visayas; and PhP1.02/kWh in Mindanao effective September 26. Napocor projects losses of up to PHP12 billion (US$226.342 million at PhP53.017=$1) a year as a result of the reduced rates, the report said. This is based on projected annual energy sales of about 40,000 gigawatthours. Last week the Court of Appeals granted a Napocor motion and restrained the commission from implementing the reduced power rates. On Tuesday, however, Mr. Butalid said Napocor wants the court to just lift its order. In turn, the power firm will just file a new rate unbundling petition with commission. ================= S I N G A P O R E ================= CHINA MERCHANTS: Issues Substantial Shareholders' Notice -------------------------------------------------------- Name of substantial shareholder: China Everbright (Singapore) Investment Company Pte Ltd (In Members' Voluntary Liquidation) Date of notice to company: 28 Oct 2002 Date of change of interest: 28 Oct 2002 Name of registered holder: Jakeplan Holdings Limited Circumstance(s) giving rise to the interest: Others Please specify details: *Please see Notes. Shares held in the name of registered holder No. of shares of the change: 10,058,000 % of issued share capital: 6.209 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: NA No. of shares held before change: 10,058,000 % of issued share capital: 6.209 No. of shares held after change: 0 % of issued share capital: 0 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 10,058,000 0 % of issued share capital: 6.209 0 No. of shares held after change: 0 0 % of issued share capital: 0 0 Total shares: 0 0 Notes: On October 28, 2002, China Everbright (Singapore) Investment Company Pte Ltd (In Members' Voluntary Liquidation) has transferred its entire shareholdings in Jakeplan Holdings Limited to China Everbright Holdings Co. Ltd. Following the transfer of shares, Jakeplan Holdings Limited ceased to be a wholly owned subsidiary of China Everbright (Singapore) Investment Company Pte Ltd (In Members' Voluntary Liquidation). Accordingly, China Everbright (Singapore) Investment Company Pte Ltd (In Members' Voluntary Liquidation) will cease to have an interest in Jakeplan Holdings Limited 10,058,000 shares referred to by virtue of Section 7 of the Companies' Act, Cap. 50 of Singapore. Submitted by Lim Lay Hoon, Company Secretary of China Merchants Holdings (Pacific) Limited, on October 29, 2002 to the Singapore Exchange. CHINA MERCHANTS: Issues Notice Of Shareholder's Interest Change --------------------------------------------------------------- Name of substantial shareholder: China Everbright Holdings Co. Ltd. Date of notice to company: October 28, 2002 Date of change of interest: October 28, 2002 Name of registered holder: Jakeplan Holdings Limited Circumstance(s) giving rise to the interest: Others Please specify details: *Please see Notes. Shares held in the name of registered holder No. of shares of the change: 975,000 % of issued share capital: 0.602 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: NA No. of shares held before change: 9,083,000 % of issued share capital: 5.607 No. of shares held after change: 10,058,000 % of issued share capital: 6.209 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 10,058,000 0 % of issued share capital: 6.209 0 No. of shares held after change: 10,058,000 0 % of issued share capital: 6.209 0 Total shares: 10,058,000 0 *Notes: On October 28, 2002, China Everbright (Singapore) Investment Company Pte Ltd (In Members' Voluntary Liquidation) has transferred its entire shareholdings in Jakeplan Holdings Limited to China Everbright Holdings Co. Ltd. Following the transfer of shares, Jakeplan Holdings Limited became a wholly owned subsidiary of China Everbright Holdings Co. Ltd. Accordingly, China Everbright Holdings Co. Ltd. is deemed (through its interests in Jakeplan Holdings Limited) to have an interest in 10,058,000 shares referred to by virtue of Section 7 of the Companies' Act, Cap. 50 of Singapore. Submitted by Lim Lay Hoon, Company Secretary of China Merchants Holdings (Pacific) Limited, on October 29, 2002 to the Singapore Exchange. CHINA MERCHANTS: Issues Notice of Shareholder's Interest Change --------------------------------------------------------------- Name of substantial shareholder: China Everbright (Singapore) Investment Company Pte Ltd (In Members' Voluntary Liquidation) Date of notice to company: October 28, 2002 Date of change of interest: October 28, 2002 Name of registered holder: China Everbright (Singapore) Investment Company Pte Ltd (In Members' Voluntary Liquidation) Circumstance(s) giving rise to the interest: Others Please specify details: Transfer of shares to wholly owned subsidiary company, Jakeplan Holdings Limited. Shares held in the name of registered holder No. of shares of the change: 975,000 % of issued share capital: 0.602 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: NA (distribution in specie) No. of shares held before change: 975,000 % of issued share capital: 0.602 No. of shares held after change: 0 % of issued share capital: 0 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 9,083,000 975,000 % of issued share capital: 5.607 0.602 No. of shares held after change: 10,058,000 0 % of issued share capital: 6.209 0 Total shares: 10,058,000 0 *Note: China Everbright (Singapore) Investment Company Pte Ltd (In Members' Voluntary Liquidation) is deemed (through its interests in Jakeplan Holdings Limited) to have an interest in 10,058,000 shares referred to by virtue of Section 7 of the Companies Act, Cap. 50 of Singapore. Submitted by Lim Lay Hoon, Company Secretary of China Merchants Holdings (Pacific) Limited, on October 29, 2002 to the Singapore Exchange. CHINA MERCHANTS: Issues Notice of Shareholder's Interest Change --------------------------------------------------------------- Name of substantial shareholder: Jakeplan Holdings Limited Date of notice to company: 28 Oct 2002 Date of change of interest: 28 Oct 2002 Name of registered holder: Jakeplan Holdings Limited Circumstance(s) giving rise to the interest: Others Please specify details: Transfer of shares from holding company, China Everbright (Singapore) Investment Company Pte Ltd (In Members' Voluntary Liquidation). Shares held in the name of registered holder No. of shares of the change: 975,000 % of issued share capital: 0.602 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: NA (distribution in specie) No. of shares held before change: 9,083,000 % of issued share capital: 5.607 No. of shares held after change: 10,058,000 % of issued share capital: 6.209 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 0 9,083,000 % of issued share capital: 0 5.607 No. of shares held after change: 0 10,058,000 % of issued share capital: 0 6.209 Total shares: 0 10,058,000 Submitted by Lim Lay Hoon, Company Secretary of China Merchants Holdings (Pacific) Limited, on October 29, 2002 to the Singapore Exchange. KIM ENG: Liquidation of Subsidiary Won't Have Material Effect ------------------------------------------------------------- The Board of Directors of Kim Eng Ong Asia Holdings Ltd (the Company) wishes to announce that its dormant wholly owned subsidiary, Ong Research (Malaysia) Sdn. Bhd., has been placed in Members' Voluntary Liquidation on October 29, 2002 and that Encik Mohd Anwar Yahya and Ms Yap Wai Fun of PricewaterhouseCoopers have been appointed liquidators of the said subsidiary. The voluntary liquidation of the said subsidiary will not have any material effect on the net tangible assets and earnings per share of the group. KIM ENG: Notifies of Changes in Shareholder's Deemed Interest ------------------------------------------------------------- Name of substantial shareholder: YUANTA CORE PACIFIC SECURITIES CO. LTD Date of notice to company: 29 Oct 2002 Date of change of deemed interest: 29 Oct 2002 Name of registered holder: The Central Depository (Pte) Limited Yuanta Securities Asia Financial Services Limited Circumstance(s) giving rise to the interest: Open market purchase Shares held in the name of registered holder No. of shares of the change: 50,000 % of issued share capital: 0.0083 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: $0.6900 No. of shares held before change: 85,948,566 % of issued share capital: 14.1635 No. of shares held after change: 85,998,566 % of issued share capital: 14.1718 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 91,044,566 0 % of issued share capital: 15.0033 0 No. of shares held after change: 91,094,566 0 % of issued share capital: 15.0116 0 Total shares: 91,094,566 0 Submitted by Gee Gek Leng, Executive Director/Company Secretary of KIM ENG ONG ASIA HOLDINGS LTD, on October 29, 2002 to the Singapore Exchange. KIM ENG: Notifies of Changes in Shareholder's Deemed Interest ------------------------------------------------------------- Name of substantial shareholder: YUANTA SECURITIES ASIA FINANCIAL SERVICES LIMITED Date of notice to company: 29 Oct 2002 Date of change of interest: 29 Oct 2002 Name of registered holder: The Central Depository (Pte) Limited Circumstance(s) giving rise to the interest: Open market purchase Shares held in the name of registered holder No. of shares of the change: 50,000 % of issued share capital: 0.0083 Amount of consideration per share excluding brokerage, GST, stamp duties, clearing fee: $0.6900 No. of shares held before change: 85,948,566 % of issued share capital: 14.1635 No. of shares held after change: 85,998,566 % of issued share capital: 14.1718 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 5,096,000 85,948,566 % of issued share capital: 0.8398 14.1635 No. of shares held after change: 5,096,000 85,998,566 % of issued share capital: 0.8398 14.1718 Total shares: 5,096,000 85,998,566 Submitted by Gee Gek Leng, Executive Director/Company Secretary of Kim Eng Asia Holding Ltd., on October 29, 2002 to the Singapore Exchange. MENTOR MEDIA: Updates Exchange of Banta Takeover Proposal --------------------------------------------------------- INTRODUCTION Mentor Media Ltd (Mentor) would like to refer to the earlier announcements by Mentor relating to the Acquisition and the Scheme up to 30 August 2002, and to a query from the SGX-ST on October 2, 2002 relating to a substantial decrease in the price of Mentor shares (2 Oct SGX Query). Further to its last announcement on August 30, 2002 relating to the Acquisition and the Scheme, Mentor wishes to provide an update on the status of the developments between Banta Corporation (Banta), Wong Yat Foo (WYF, a major shareholder of Mentor) and Mentor regarding, among other things, their discussions on (1) how and under what conditions the purchase consideration to WYF would be paid to him and (2) the condition precedent to the Scheme requiring Mentor Group to have at least S$37,500,000 in net tangible asset value (the NTA) as of the Determination Date (being a date falling on or after September 30, 2002 and 14 days or less before the Scheme becomes effective). DISCUSSIONS BETWEEN BANTA, WYF AND MENTOR FROM AUGUST 13, 2002 TO OCTOBER 2, 2002 In the course of the discussions between Banta, WYF and Mentor in the period from Mentor's announcement dated 13 August 2002 up to the date of the 2 Oct SGX Query, the Directors understand that Banta proposed, among other things, for WYF's consideration: (a) revising the amount of WYF's Holdback Amount of US$7,500,000 which was previously announced on 20 June 2002; (b) Banta holding on to a substantial portion of the purchase consideration which will be due to WYF under the Scheme (the Earnout Amount) and releasing the Earnout Amount to WYF if and when the Mentor Group (together with the supply-chain management businesses of Banta Global Turnkey in Asia, except any such business specifically excluded) achieves certain levels of profits in calendar years 2003, 2004 and 2005; (c) in the event that specified levels of profits are not achieved, WYF will lose the Earnout Amount according to an earnout formula proposed by Banta. In addition, Banta and Mentor also discussed revising the minimum amount of the net tangible asset value of the Mentor Group under the NTA condition precedent. As of October 2, 2002, the parties' discussions on the above terms had not resulted in any agreement being reached. In view of a substantial decrease in the price of Mentor shares in the three days up to 2 October 2002, Mentor had as a precautionary measure requested that Mentor shares be suspended from trading with immediate effect on 2 October 2002 pending an announcement by Mentor. IMPLEMENTATION OF THE SCHEME From October 2, 2002 to October 10, 2002, Mentor deliberated on its possible course of action in relation to the Scheme. The Directors understand that Banta had applied to the Securities Industry Council (SIC) on October 10, 2002 for a ruling on Banta's right to terminate the Scheme by invoking certain conditions precedent (the Relevant Conditions) to the Scheme stated in the announcement on June 20, 2002. From October 10, 2002 to October 18, 2002, Mentor had submitted information, representations and documents pursuant to requests by SIC. SIC had on October 18, 2002 ruled that Banta is not entitled to invoke any of the Relevant Conditions to terminate the Scheme, based on the information, representations and documents submitted by Mentor and Banta. Notwithstanding SIC's ruling on October 18, 2002, Banta had by an announcement made in the United States on October 21, 2002, stated its intention to seek a court ruling to terminate the Scheme (the Banta Announcement). Notwithstanding SIC's ruling on October 18, 2002, Banta had by separate letters to Mentor and Wong Yat Foo on October 21, 2002, claimed that the implementation agreement dated June 20, 2002 entered into between Banta and Mentor (the Implementation Agreement) had been terminated. Alternatively, Banta claimed that the Implementation Agreement had been rescinded. In the further alternative, if the Implementation Agreement was not already rescinded, Banta by the letter purported to rescind it. As a further alternative to Banta's position that the Implementation Agreement had been rescinded, Banta purported to invite Mentor to consult with Banta on certain conditions precedent which Banta claimed Mentor had failed to satisfy. On October 24, 2002, Banta by a letter to Mentor purported to give Mentor notice of termination of the Implementation Agreement. On October 25, 2002, Banta by a letter from its legal advisers stated its intention to commence proceedings against Mentor and two of Mentor's directors. The above-mentioned letters from Banta are hereinafter referred to as the "Banta Letters". The Banta Letters did not set out the factual details supporting such conclusions, and Mentor and the two Directors named in the Banta Letters deny that there is any basis for the allegations and conclusions under the Banta Letters. As stated in the joint announcement by Mentor and Banta dated June 20, 2002, Banta is not permitted to invoke any of the Relevant Conditions to terminate or prevent the implementation of the Scheme without first consulting the SIC. Mentor has instructed its legal advisers to respond to Banta accordingly, and to reiterate that Mentor would not accept the purported breach of the Implementation Agreement by Banta. From October 18, 2002 to date, Mentor has been in discussions with its legal advisers on the appropriate course of action to be taken. Mentor has also written to the SIC on October 24, 2002 to consult the SIC on issues relating to the Singapore Code on Take-overs and Mergers (the Code). The SIC has requested Mentor for more information, to which Mentor responded on October 28, 2002. Notwithstanding the Banta Letters and the Banta Announcement, the Directors of Mentor are of the view, that as at the date hereof, it is in the interests of Mentor and the Mentor shareholders for Mentor to take steps to implement the Scheme, including the despatch of the Scheme Document, under the Implementation Agreement for so long as the obligations therein subsist, and for so long as Banta is not entitled to invoke the Relevant Conditions to terminate the Scheme. Mentor therefore proposes to continue to take steps to implement the Scheme, including despatching the Scheme Document shortly. The expected dates for the despatch of the Scheme Document and the date of the Court Meeting to be held for Mentor shareholders to vote on the Scheme will be announced shortly. The Mentor Board wishes to state that it takes a serious view of its duties and obligations under the Code and towards Mentor shareholders, and will continue to consult with SIC, and respond to SIC's queries, regarding the implementation of the Scheme. CAUTION TO SHAREHOLDERS AND INVESTORS The Directors wish to caution that while Mentor proceeds to take steps to implement the Scheme, it currently remains uncertain whether Banta would proceed with the acquisition of Mentor shares under the Scheme. Mentor shareholders and investors are accordingly urged to exercise great caution when trading in Mentor shares in the meantime and should note that there is no assurance that the Scheme can, or will, be fully implemented in accordance with the terms thereof. LIFTING OF SUSPENSION The Company expects to request that the trading of Mentor shares resumes on October 30, 2002, barring any material developments arising after this announcement. Accordingly, the Company expects to make a separate announcement on the lifting of the suspension of trading of Mentor shares on October 30, 2002. RESPONSIBILITY STATEMENT The Directors of Mentor (including those who may have delegated detailed supervision of the preparation of this announcement) have taken all reasonable care to ensure that: (1) the facts stated and opinions expressed in this announcement relating to Mentor are fair and accurate; and (2) no material facts relating to Mentor have been omitted from this announcement, and they jointly and severally accept responsibility accordingly. Submitted by Lo Swee Wen, Director, October 29, 2002 to the Singapore Exchange. NEPTUNE ORIENT: Issues Substantial Shareholder's Interest Notice ---------------------------------------------------------------- Name of substantial shareholder: UBS AG and its group of companies worldwide Date of notice to company: October 29, 2002 Date of change of interest: October 25, 2002 Name of registered holder: Proprietary positions as well as in the names of various mutual funds, unit trusts and discretionary accounts managed by UBS group of companies Circumstance giving rise to the change: Others Please specify details: Transfer of shares to non-voting portfolio by asset management client Shares held in the name of registered holder No. of shares of the change: (50,100) % of issued share capital: 0.0043 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: No. of shares held before change: 78,258,605 % of issued share capital: 6.6539 No. of shares held after change: 78,208,505 % of issued share capital: 6.6496 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 76,935,196 1,323,409 % of issued share capital: 6.5414 0.1125 No. of shares held after change: 76,885,096 1,323,409 % of issued share capital: 6.5371 0.1125 Note: Figures Based on Neptune Orient Line Limited's paid up capital of 1,176,133,887 as at March 7, 2002. Submitted by Marjorie Wee, Company Secretary, on October 30, 2002 to the Singapore Exchange. NEPTUNE ORIENT: Issues Substantial Shareholder's Interest Notice ---------------------------------------------------------------- Name of substantial shareholder: UBS AG and its group of companies worldwide Date of notice to company: October 28, 2002 Date of change of interest: October 24, 2002 Name of registered holder: Proprietary positions as well as in the names of various mutual funds, unit trusts and discretionary accounts managed by UBS group of companies Circumstance giving rise to the change: Open market purchase Shares held in the name of registered holder No. of shares of the change: 6,000 % of issued share capital: 0.0005 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: S$0.76 No. of shares held before change: 78,031,605 % of issued share capital: 6.6346 No. of shares held after change: 78,037,605 - % of issued share capital: 6.6351 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 76,708,196 1,323,409 % of issued share capital: 6.5221 0.1125 No. of shares held after change: 76,714,196 1,323,409 % of issued share capital: 6.5226 0.1125 Based on Neptune Orient Lines Limited's paid up capital of 1,176,133,887 as of March 7, 2002. Submitted by Marjorie Wee, Company Secretary of Neptune Orient Lines Limited, on October 29, 2002 to the Singapore Exchange. =============== T H A I L A N D =============== THAI AIRWAYS: Fourth Quarter Earnings Down Due to High Fuel Cost ---------------------------------------------------------------- Escalating oil prices has hit hard the fourth quarter margins of Thai Airways, driving its net profit to 10 billion baht ($229.8 million) in its 2001/02 financial year ending on September 30, suggesting a fourth quarter net profit of just 780 million baht, Reuters said yesterday. Thai Airways reported a net profit of 9.22 billion baht in the first nine months of the financial year, and is due to post its official full-year results in mid-November. "The forecast for Thai Airways has been cut from 15 billion to 10 billion baht due to higher oil prices in the last quarter as a result of U.S.-Iraq tension," Deputy Transport Minister Pichate Satirachaval told Reuters. Kim Eng Securities research head Vikas Kawatra says this is not the time to hold any airline stocks, particularly the company's shares. "You have increased oil costs and forex losses. So it's not looking good," Mr. Kawatra told Reuters. Thai Airways is highly vulnerable to currency volatility and a weak baht magnifies the cost of its imported oil and interest payments on its dollar-denominated debt, the news agency said. But some analysts are keen on Thai Airways because of its strong passenger growth, although they note concern about the overall health of travel to Southeast Asia following this month's devastating blasts on the Indonesian holiday island of Bali. "We expect Thai Airways to continue to show traffic strength in September," Merrill Lynch analyst Komsun Suksumrun, who has a share price target of 50 baht for the stock, said in a research note last week. "But while an adverse impact from the Bali bombings currently appears relatively muted, as reflected by limited cancellations of bookings, we think it would be premature to rule out...a negative effect on air travel demand to Thailand." 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 ***