/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/030129.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 Wednesday, January 29, 2003, Vol. 6, No. 19 Headlines A U S T R A L I A AUSTRALIAN GAS: Moomba Plant Resumes Gas Production BEACONSFIELD GOLD: Signs Financing MOU With Gold Investors COMESTOCK CORPORATION: Former Officer Pleads Guilty GOODMAN FIELDER: Panel Accepts Undertaking in Declining BPC MAXIS CORPORATION: Posts Change of Director`s Interest Notice PASMINCO LIMITED: Inks SPA With CBH for Elura Mine Sale TOWER LIMITED: GPG Holds 3.45% Shares C H I N A & H O N G K O N G 888 INVESTMENTS: Winding Up Hearing Scheduled in Feb 26 AN HAU: Faces Winding Up Petition CHI YIP: Winding Up Sought by Lam Kam PERFECT LINK: Winding Up Petition Set for Hearing SIMSEN INT'L: Trims Operations Loss to HK$13.54M STARBOW HOLDINGS: Releases Open Offer Results TIMEGOOD INVESTMENT: Petition to Wind Up Pending I N D O N E S I A BANK DANAMON: IBRA Remains Undecided on Share Sales BANK PUTERA: IBRA Still Requires Owner to Settle Debt J A P A N DAIHATSU MOTOR: Gives Up Alliance in Italian Manufacturing JV DAIEI INC.: Dissolving Subsidiary DAIEI INC.: Inviting Retailers to Become Store Tenants FUJITSU LIMITED: Operating Loss Narrows to Y13.1B HOKKAIDO INTERNATIONAL: Start Flights Between Asahikawa, Tokyo MITSUBISHI ELECTRIC: Ends Computer Production MIZUHO HOLDINGS: Aims to Raise Y500B in Equity Capital NKK CORPORATION: Enters Agreement With U.S. Unit ORIENT TATEMONO: Court Approves Special Liquidation RESONA HOLDINGS: Reveals Joint Venture With BEA K O R E A DAEWOO GROUP: French Unit Declares Bankruptcy KOREA ELECTRIC: Plan to Privatize Affiliates Still Afloat M A L A Y S I A ABRAR CORPORATION: Defaulted Payment Status Unchanged ANSON PERDANA: February 22 30th AGM Scheduled INTAN UTILITIES: Posts Loan Defaulted Payment Summary LIEN HOE: Reaches Loan Stock Settlement With Holders MBF HOLDINGS: Disposes of Unit in Streamlining Exercise MECHMAR CORP: KLSE Reprimands, Imposes Fine Over Listing Breach NORTH BORNEO: Clarifies Sustainable Forest Management Report PAN MALAYSIA: Not Affected by Unit's Dissolution PANGLOBAL BHD: Unit's Dec Timber Volume Reaches 23,944.04cu/m TALAM CORPORATION: Hong Kong Subsidiary Dissolved TRANS CAPITAL: Parties Agree to SSA Deadline Extension UCP RESOURCES: Requesting Requirement Waiver P H I L I P P I N E S DIGITAL TELECOM: Must Transfer Mobile License to Unit, NTC MABUHAY VINYL: Appealing Verdict Against IR Commissioner MULTINATIONAL INTERNATIONAL: Owners Charged With Code Violations NATIONAL BANK: Posts FY02 Y1.9B Net Loss NATIONAL BANK: NPL Ratio Rose Above 50% in 2002, says S&P NATIONAL POWER: Schedules Coal Supply Auction Today PHILIPPINE LONG: Continues to Focus on Debt Reduction S I N G A P O R E HOTUNG INVESTMENT: Issues Profit Warning NEPTUNE ORIENT: Issues Clarification Re APL Logistics SEATOWN CORPORATION: Files for Judicial Management VIKAY INDUSTRIAL: Completes Sale of Plot Land in Johor T H A I L A N D JASMINE INT'L: Rehab Plan Submitted to Official Receiver KRISDAMAHANAKORN PUBLIC: TAMC OKs Bt2,375.96 Debt Restructuring SOCON ENGINEERING: Files Business Reorganization Petition TELECOMASIA CORPORATION: Announces Debenture Issuance, Offering - - - - - - - - ================= A U S T R A L I A ================= AUSTRALIAN GAS: Moomba Plant Resumes Gas Production --------------------------------------------------- The Australian Gas Light Company (AGL) has been informed that gas deliveries to New South Wales and South Australia have recommenced following the completion of repair work at the Santos gas processing plant at Moomba. Damage to the plant's flare system during routine maintenance over the weekend caused a reduction of gas supplies. Repair work was completed last night and gas has been flowing into the Moomba to Sydney and Moomba to Adelaide pipelines since earlier this morning. AGL's 800,000 gas customers in NSW were unaffected by the problems at Moomba as AGL was able to source additional gas from the BHP-Billiton/Esso Gippsland Basin producers. The gas was transported to Sydney via the Interconnect and Eastern Gas pipelines. The Troubled Company Reporter - Asia Pacific reported December last year that the Company sells 15% equity interest in the Southern Cross Energy Partnership. According to Wrights Investors' Service, at the end of 2001, The Australian Gas had negative working capital, as current liabilities were A$1.88 billion while total current assets were only A$1.05 billion. CONTACT INFORMATION: Jane Counsel MEDIA RELATIONS MANAGER Direct: (02) 9922 8352 Mobile: 0416 275 273 BEACONSFIELD GOLD: Signs Financing MOU With Gold Investors ----------------------------------------------------------- A syndicate of professional investors (Gold Investors Syndicate) has signed a Memorandum of Understanding (MOU) with the Executive Director of Beaconsfield Gold NL (Beaconsfield Gold). The Gold Investors Syndicate will provide total funding of $6.5 million in two tranches. FUNDING OF ACTIVITIES NECESSARY FOR BEACONSFIELD GOLD TO GET OUT OF RECEIVERSHIP Subject to formal documentation of the heads of agreement set out in the MOU, the Gold Investors Syndicate will pay for all the activities necessary for the Beaconsfield Gold Directors to arrange for the retirement of the Receiver and Manager to Beaconsfield Gold. These activities will include the re- activation of the register of shareholders which has been frozen since the appointment of the Receiver and Manager, the preparation and auditing of the financial accounts for the Beaconsfield Gold group of companies for the 2001 and 2002 financial years, the preparation and printing of annual reports for those years and the holding of annual general meetings of shareholders (AGM's) for those years to approve the accounts. The Gold Investors Syndicate will pay directly for all the necessary activities from the first tranche of $0.5 million on the contingent basis that the total of the costs paid will be converted into ordinary, fully-paid Beaconsfield Gold shares at $0.10 per share once the Receiver and Manager has retired. The conversion price of $0.10 per share is less than the last sale price for Beaconsfield Gold shares of $0.23 in June 2001 but is considered fair and commensurate with the risk for the Gold Investors Syndicate ahead of the retirement of the Receiver and Manager. PLACEMENT OF SHARES TO THE GOLD INVESTORS SYNDICATE At the AGM to consider the financial reports for the 2001 and 2002 years, it is also proposed under the MOU that the shareholders of Beaconsfield Gold be asked to approve the placement of approximately 26.1 million ordinary, fully-paid Beaconsfield Gold shares to the Gold Investors Syndicate at $0.23 per share (the last sale price for Beaconsfield Gold shares) to raise the second tranche of $6.0 million. This placement would be subject to the retirement of the Receiver and Manager. Following the placement, the Gold Investors Syndicate would nominate a well-credentialled Director with resources experience to become Chairman of Beaconsfield Gold. It is envisaged that around $3.0 million of the second tranche would be used to pay out in full the unsecured debt owed by the Beaconsfield Gold group of companies to Allstate Explorations NL (via the Beaconsfield Mine Joint Venture) and to pay out in full the unsecured creditors of Beaconsfield Gold. It is envisaged that the balance of the $6.0 million raised, around $3.0 million, would be used to pay down Beaconsfield Gold's secured debt. Any funds from the first tranche of $0.5 million that remain unspent on the retirement of the Receiver and Manager will be paid over to Beaconsfield Gold, to add to working capital, and Beaconsfield Gold will issue the Gold Investors Syndicate with additional ordinary, fully-paid Beaconsfield Gold shares at $0.23 per share to cover the excess funds. CLAIMS AGAINST BBR Arbitration of the claims by Allstate and Beaconsfield Gold against Bateman Brown & Root (BBR), the contractor responsible for the design, construction and commissioning of the ore treatment plant, is ongoing. The claims are capped at A$20 million under the contract with BBR, so that Beaconsfield Gold's 48.49% share of the claims against BBR under the contract totals approximately A$9.7 million. In a circular to creditors and shareholders of Allstate dated 29 October 2002, one of the Joint Administrators of Allstate, Michael Ryan, said in part: "Whilst positive progress is made at the mine site, efforts continue with the $20m plus litigation of the BMJV's claim against the design and construct engineers, Bateman, Brown Root relating to the 1999 construction of the BMJV's processing plant. It is expected the arbitration hearing in relation to this matter will take place mid next year (approximately June 2003)." A successful resolution of the BBR claims would result in Beaconsfield Gold holding funds surplus to its needs, given the strong cash flows now being generated by the Beaconsfield Mine, and it is envisaged that these surplus funds would be used to further reduce the level of secured debt. BANK RE-FINANCING DISCUSSIONS A substantial banking group has also approached the Executive Director of Beaconsfield Gold with a view to investigating the re-financing of Beaconsfield Gold's existing facilities with BankWest. COMESTOCK CORPORATION: Former Officer Pleads Guilty --------------------------------------------------- Mr Hiromi (Henry) Kawada, a resident of the Gold Coast, Queensland, on Friday pleaded guilty in the Brisbane District Court to 16 charges under the Corporations Law and Queensland Criminal Code. The charges follow an ASIC investigation into Mr Kawada's involvement with two Australian-registered companies, Comestock Corporation (Australia) Pty Ltd (In liquidation) and Jillbridge Pty Ltd. Based on the Australian Securities and Investments Commission's (ASIC), allegations, the case is being prosecuted by the Commonwealth Director of Public Prosecutions. Mr Kawada pleaded guilty to one count of false pretences, two counts of failing to act honestly in the exercise of his powers and discharge of his duties as an officer of a company, two counts of improper use of his position as an officer of a company, five counts of misappropriation, one count of making a false statement as an officer of a company and five counts of forgery. Comestock Corporation and Jillbridge were real estate investment companies based in Queensland. Mr Eikichi Yazawa, a high-profile Japanese musician, was a director and major shareholder of both these companies. During the late 1980s and early 1990s, Mr Yazawa invested in excess of AU$27 million in commercial, industrial, residential and leisure real estate on the Gold Coast and Port Douglas. Mr Kawada was appointed by Mr Yazawa to manage these properties. These property investments were subsquently liquidated by the mortgagees as a result of alleged misconduct by Mr Kawada, and his colleague, Mr Harunobu Fukusato, the Japanese-based financial manager of Comestock Corporation and Jillbridge. ASIC alleges that both he and Mr Fukusato tried to cover up the loss of assets. On 17 January 2003, Mr Fukusato pleaded guilty in the Southport District Court in to five charges under the Corporations Act and Queensland Criminal Code. ASIC alleged that Mr Fukusato failed to act honestly as an officer of Comestock Corporation with intent to deceive a creditor. ASIC further alleged that Mr Fukusato failed to properly inform Mr Yazawa that Comestock Corporation had been wound up in April of 1995, and that his actions aided the commission of forgery offences by Mr Kawada. Mr Kawada was bailed on his own undertaking and ordered to surrender his passport. He will be sentenced in the Brisbane District Court on 3 March 2003. Mr Fukusato will be sentenced on a day to be fixed. GOODMAN FIELDER: Panel Accepts Undertaking in Declining BPC ----------------------------------------------------------- The Takeovers Panel advises that it has accepted undertakings from Goodman Fielder Ltd. (Goodman Fielder) in relation to the takeover bid by BPC1 Pty Ltd. (Burns Philp) (a subsidiary of Burns, Philp & Company Ltd). To assist the conduct of the Panel's proceedings, Goodman Fielder has provided an undertaking to the Panel in relation to various advertisements and communications to shareholders concerning Burns Philp's takeover offer, which are currently in dispute between the parties in the proceedings. On the basis of the undertakings from Goodman Fielder, the Panel has declined the application for interim orders from Burns Philp in relation to the proposed takeover bid for Goodman Fielder by Burns Philp, which the Panel received on 20 January 2003. The Panel is currently considering the issues raised in Burns Philp's application The President of the Panel has appointed Ilana Atlas, Michael Tilley and Marian Micalizzi to be the Sitting Panel to consider the application. CONTACT INFORMATION: Nigel Morris Director, Takeovers Panel Level 47 Nauru House 80 Collins Street Melbourne VIC 3000 Ph: +61 3 9655 3501 nigel.morris@takeovers.gov.au MAXIS CORPORATION: Posts Change of Director`s Interest Notice ------------------------------------------------------------- MAXIS CORPORATION LIMITED posted this notice: CHANGE OF DIRECTOR'S INTEREST NOTICE Name of Company Maxis Corporation Limited ABN 52 009 239 285 We (the entity) give the ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act. Name of Director Eugene Kopp Date of last notice 30/12/2002 Part 1 - Change of director's relevant interests in securities Direct or indirect interest Indirect Nature of indirect interest (including registered holder) Pebor Pty Limited (Beneficiary of Family Trust) Date of change 21/01/2003 No. of securities held prior to change 0 Class Ordinary Shares Number Acquired 1,000,000 Number disposed Nil Value/consideration $ 23,000 No. of securities held after change 1,000,000 Nature of change On-market Trade Part 2 - Change of director's relevant interests in contracts Detail of contract N/A Nature of direct interest - Name of registered holder (if issued securities) - Date of change - No. and class of securities to which interest related prior to change - Interest Acquired - Interest disposed - Value/consideration - Interest after change - Wrights Investors' Service reports that at the end of 2002, Maxis Corporation Limited had negative working capital, as current liabilities were A$2.82 million while total current assets were only A$2.56 million. The company also reported losses during the previous 12 months and has not paid any dividends during the previous 2 fiscal years. PASMINCO LIMITED: Inks SPA With CBH for Elura Mine Sale ------------------------------------------------------- Consolidated Broken Hill Ltd has entered into detailed negotiations with Pasminco Limited on a Sales and Purchase Agreement for the Elura zinc, lead, silver mine near Condor, New South Wales. The exclusive period held by Consolidated Broken Bill Ltd for completion of negotiations and sale documentation has been extended to 14 February 2003. TOWER LIMITED: GPG Holds 3.45% Shares ------------------------------------- Following enquiries from Tower Limited under Section 28 of the Securities Amendment Act, TOWER has just been advised that as at 3 January 2003, Guinness Peat Group Plc held 6,058,037 ordinary shares in TOWER Limited, equivalent to 3.45% of TOWER's issued capital. The Troubled Company Reporter - Asia Pacific reported last week that TOWER Group will increase TOWER Australia Limited's surplus assets by a further A$30 million. It also said that an independent actuary is undertaking the review and a report are expected to APRA in February 2003. The report will look at admissibility (for capital and solvency purposes) and valuations of certain strategic assets. ================================ C H I N A & H O N G K O N G ================================ 888 INVESTMENTS: Winding Up Hearing Scheduled in Feb 26 ------------------------------------------------------- The High Court of Hong Kong will hear on February 26, 2003 at 9:30 in the morning the petition seeking the winding up of 888 Investments Limited Ng Ngok Pang of Room 1801, Chi Yat House, Yat Tung Estate, Tung Chung, New Territories, Hong Kong filed the petition on December 20, 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 on the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. AN HAU: Faces Winding Up Petition --------------------------------- The petition to wind up An Hau Company Limited s set for hearing before the High Court of Hong Kong on February 12, 2003 at 10:00 in the morning. The Petition was filed with the court on December 10, 2002 by Bank of China (Hong Kong) Limited whose registered office is situated at 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong. CHI YIP: Winding Up Sought by Lam Kam ------------------------------------- Lam Kam Ming is seeking the winding up of Chi Yip Company Limited. The petition was filed on December 6, 2002, and will be heard before the High Court of Hong Kong on February 12, 2003 at 9:30 am. Megaprint holds its registered office at Flat G, 19/F., Block 2, Chestwood Court, Kingswood Villas, Tin Shui Wai, New Territories, Hong Kong. PERFECT LINK: Winding Up Petition Set for Hearing ------------------------------------------------- The petition to wind up Perfect Link Limited is scheduled to be heard before the High Court of Hong Kong on February 26, 2003 at 9:30 in the morning. The petition was filed with the court on December 20, 2002 by Chui Yuk Yin of Room 1815, 18/F., Man Fu House, Hing Man Estate, Chai Wan, Hong Kong. SIMSEN INT'L: Trims Operations Loss to HK$13.54M ------------------------------------------------ Simsen International Corporation Limited announced on 27 January 2003: Year end date: 30/04/2003 Currency: HKD Auditors' Report: N/A Review of Interim Report by: Audit Committee (Unaudited) (Unaudited) Last Current Corresponding Period Period from 01/05/2002 from 01/05/2001 to 31/10/2002 to 31/10/2001 Note ('000) ('000) Turnover : 60,966 158,627 Profit/(Loss) from Operations : (13,545) (374,546) Finance cost : (5,970) (8,068) Share of Profit/(Loss) of Associates : (6,783) (5,617) Share of Profit/(Loss) of Jointly Controlled Entities : 3,032 3,018 Profit/(Loss) after Tax & MI : (23,762) (385,417) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.0837) (1.6963) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss): N/A N/A Profit/(Loss) after ETD Items : (23,762) (385,417) Interim Dividend : Nil Nil per Share (Specify if with other : N/A N/A options) B/C Dates for Interim Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: Loss Per Share (a) The basic loss per share is calculated based on the unaudited consolidated net loss attributable to shareholders for the period of HK$23,762,000 (2001: loss of HK$385,417,000) and on weighted average of 283,979,043 ordinary shares in issue (2001: adjusted weighted average of 227,216,000 ordinary shares), adjusted to reflect the ten-to-one share consolidation during the period. The loss per share for the period ended 31 October 2001 has been adjusted accordingly. (b) Diluted earnings/(loss) per share for the periods ended 31 October 2002 and 2001 have not been shown as the potential ordinary shares were anti-dilutive. STARBOW HOLDINGS: Releases Open Offer Results --------------------------------------------- The Directors of Starbow Holdings Limited announced that the Company has received 137 valid applications for the 3,509,169, 976 Offer Shares, representing approximately 87.1% of the total number of 4,030,171,677 Offer Shares available for subscription under the Option Offer. As the Open Offer is under-subscribed, the Underwriter is obliged to subscribe for and/or procure subscription for the remaining balance of 521,001,701 Offer Shares. The Open Offer became unconditional on January 24, 2003. Wrights Investors' Service reports that at the end of 2002, Starbow Holdings had negative working capital, as current liabilities were HK$42.25 million while total current assets were only HK$33.23 million. The company also reported losses during the previous 12 months and has not paid any dividends during the previous 2 fiscal years. TIMEGOOD INVESTMENT: Petition to Wind Up Pending ------------------------------------------------ The petition to wind up Timegood Investment Limited is scheduled for hearing before the High Court of Hong Kong on February 12, 2003 at 10:00 in the morning. The petition was filed with the court on December 9, 2002 by Bank of China (Hong Kong) Limited (the successor corporation to The China and South Sea Bank Limited, Hong Kong branch, pursuant to Bank of China (Hong Kong) Limited (Merger) Ordinance (Cap. 1167) of 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong. ================= I N D O N E S I A ================= BANK DANAMON: IBRA Remains Undecided on Share Sales --------------------------------------------------- The Indonesian Bank Restructuring Agency (IBRA) is still undecided in respect to the plan to pour PT Bank Danamon shares into the market, as the share market price is deemed "not feasible," Bisnis Indonesia reports, quoting IBRA Deputy Chairman for Bank Restructuring I Nyoman Sender. "IBRA is expecting to get upside from the share sales. We wouldn't surely pour it to the market at this kind of unfavorable market condition," Sender said, adding that IBRA should have resorted to the plan on Friday but now must shelve or even cancel it. Meanwhile, Chairman of House's Commission IX Max Moein strongly denied when asked about rumor over meeting between IBRA and legislators in Hotel Intercontinental Mid Plaza. "That's not true. We had no meeting with IBRA, not me or other members of the commission IX. Since there absolutely is no meeting, then there's also no point of discussion," Moein asserted. BANK PUTERA: IBRA Still Requires Owner to Settle Debt ----------------------------------------------------- The Indonesian Bank Restructuring Agency would still force Marimutu Sinivasan, the owner of PT Bank Putera Multikarsa, to pay his Rp1.317 trillion debt as stipulated in Debt Declaration Certificate (APU), which he signed on October 30, 2000, Bisnis Indonesia reports, citing IBRA Deputy Chairman for Assets Management Credit Mohammad Syahrial. "The proposed concept is indeed applicable on condition that the debt is not linked to Bank Indonesia Liquidity Support (BLBI) fund. However we should also take macro condition into consideration that we could not just abruptly give approval on it," he said, adding that IBRA must obtain Financial Sector Policy Committee (FSPC) approval for application of the concept. The assets would be sold through Strategic Assets Sales Program (PPAS). A Legal Aid Team (TPBH) and Oversight Committee (OC) study showed Sinivasan has made three "derelictions of obligation." The first related to the requirement to make payment of Rp12.17 billion in November 2000 and the second regarding the first installment of principal debt on October 30, 2001. The third dereliction he committed was in failing to make interest payment every six months as required. ========= J A P A N ========= DAIHATSU MOTOR: Gives Up Alliance in Italian Manufacturing JV ------------------------------------------------------------- Daihatsu Motor recently announced that it plans to sell all of its shares in its Italian auto manufacturing joint venture, P&D, to its Italian partner Piaggio, at the end of January. In addition, the Japanese mini vehicle manufacturer intends to dissolve its Daihatsu Europe sales company in February. This will end Daihatsu's joint venture production activities in Europe. Currently, Piaggio holds a 51 percent stake in P&D, and Daihatsu 49 percent. P&D has been manufacturing the Hijet and Porter commercial vehicles. Daihatsu believes that sales will likely remain flat in Europe, and at the close of 2002 discontinued Hijet production. After Piaggio purchases Daihatsu's shares in P&D, Daihatsu plans to revise its parts supply system for the Porter model. Daihatsu established Daihatsu Europe in November 1992 as a wholly owned subsidiary with an investment of approximately $300,000. It turned the company's management over to Piaggio in 1995, and it has remained dormant ever since the transition. For a copy of the press release, please visit www.daihatsu.co.jp According to Wright Investor's Service, at the end of 2002, Daihatsu Motor Co Ltd had negative working capital, as current liabilities were 446.16 billion yen while total current assets were only 345.74 billion yen. DAIEI INC.: Dissolving Subsidiary --------------------------------- Ailing retailer Daiei Inc. decided to dissolve its loss-making home appliance unit Palex Co., Kyodo News and said on Tuesday. The Troubled Company Reporter-Asia Pacific reported Tuesday that the Ministry of Economy, Trade and Industry (METI) denied reports that the government wants Daiei Inc. to revise its restructuring scheme, citing Minister Takeo Hiranuma. DAIEI INC.: Inviting Retailers to Become Store Tenants ------------------------------------------------------ Daiei Inc. is in final stage of talks to encourage electronics retailers to become tenants at its 35 stores, in order to revive the retailer's loss-making electronics sales operation, Dow Jones reports. Daiei named Laox Co. and Best Denki among the top candidates, but the possible earnings impact on these electronics sellers will remain uncertain until they reach a final agreement. FUJITSU LIMITED: Operating Loss Narrows to Y13.1B ------------------------------------------------- Fujitsu Limited posted a third quarter operating loss of 13.1 billion yen ending December, versus a loss of 45.8 billion yen a year earlier due to cost cutting and restructuring exercises, AFX Asia said on Tuesday. The third quarter pretax loss came in at 29.2 billion yen, after a loss of 63.1 billion in 2002, the net loss was 24.9 billion yen after a loss of 106.1 billion. HOKKAIDO INTERNATIONAL: Start Flights Between Asahikawa, Tokyo -------------------------------------------------------------- Struggling Hokkaido International Airlines, widely known as Air Do, is set to begin operating flights between Hokkaido's Asahikawa airport and Tokyo's Haneda airport as soon as possible, Kyodo News said on Tuesday. The airline needs to secure arrival and departure slots at Haneda airport "at an early date" in time for summer demand for flights to Asahikawa, Company President Susumu Takizawa said. MITSUBISHI ELECTRIC: Ends Computer Production --------------------------------------------- Mitsubishi Electric Corporation has decided to contract out production of its computer servers to NEC Corporation, effectively ending its computer production business, Nihon Keizai Shimbun and Kyodo News reported Tuesday. The decision reflects fierce competition resulting from a price war waged by U.S. competitors such as Dell Computer Corp. Under the original equipment-manufacturing agreement, NEC will produce all personal computer servers Mitsubishi Electric sells under the Mitsubishi brand, it report said. The Troubled Company Reporter-Asia Pacific reported in November that Mitsubishi Electric Corporation (MEC) expects to post an operating loss of 30 billion yen for the year on sales of 420 billion," MEC Executive Director Yukihiro Sato said. Last year, the Company's chip operations reported a first half operating loss of 19.9 billion yen on sales of 192.2 billion. MIZUHO HOLDINGS: Aims to Raise Y500B in Equity Capital ------------------------------------------------------ Mizuho Holdings Inc. is planning to raise 500 billion yen of its 1-trillion-yen target in equity capital from domestic customers, other than financial institutions, by issuing preferred shares by March 31, the Asahi Shimbun reports. The Company will seek about 300 billion yen from institutional investors such as life insurance companies. Mizuho officials will seek the approval of the plan at an extraordinary shareholders' meeting slated for February 5. Under the plan, the Company will issue 4.5 million preferred shares, each with a value of 1 million yen. Amongst institutional investors, leading shareholder Dai-Ichi Mutual Life Insurance Co. will be asked to accept about 100 billion yen worth of the shares. Other insurers, including Meiji Life Insurance Co., Yasuda Mutual Life Insurance Co. and Fukoku Mutual Life Insurance Co. will also be asked to cooperate with the plan, the sources said. Officials will consider asking insurers to convert subordinated loans already extended to Mizuho into preferred shares. NKK CORPORATION: Enters Agreement With U.S. Unit ------------------------------------------------ National Steel Corporation recently announced that it has entered into an Option Agreement with NKK Corporation, its majority stockholder, and United States Steel Corporation. Under the terms of the Option Agreement, NKK has granted U.S. Steel an option to purchase all of its National Steel stock, which represents approximately 53 percent of National Steel's outstanding shares, and has agreed to restructure a $100 million loan previously made to National Steel by an NKK subsidiary. The option expires on June 15, 2002. If the option is exercised, NKK will receive warrants to purchase 4,000,000 shares of U.S. Steel common stock in exchange for its National Steel shares. The warrants will be exercisable through June 2007 at a price equal to 150 percent of the average closing price for U.S. Steel's stock during a 60-day period prior to the issuance of the warrants. If the option is exercised, the NKK subsidiary loan to National Steel would be restructured into an unsecured, non-interest bearing $30 million note, with a twenty year term, convertible into 1,000,000 shares of U.S. Steel common stock. In addition, if the option is exercised, U.S. Steel will offer to acquire the remaining shares of National Steel in exchange for either warrants with no less value that those provided to NKK or U.S. Steel stock based upon an exchange ratio of 0.086 shares of U.S. Steel stock for each share of National Steel stock. The option of National Steel's minority stockholders to receive warrants will only be available if a sufficient number of those stockholders elect to receive warrants so that the warrants may be listed on the New York Stock Exchange. As part of the Option Agreement, U.S. Steel and National Steel have agreed to begin negotiations of a transaction pursuant to which U.S. Steel would acquire National Steel through a merger with a newly formed U.S. Steel subsidiary. The merger would be part of the recently announced goal of achieving significant consolidation in the domestic integrated steel industry. Hisashi Tanaka, National Steel's Chairman and Chief Executive Officer, said, "We know we have a lot of hard work ahead of us to complete this transaction. In light of the adverse conditions affecting the Company and the domestic steel industry, we believe that exploring a possible combination with U.S. Steel is in the best interests of all of the Company's stakeholders at this time." National Steel indicated that its board of directors had appointed a special committee of independent directors in December to evaluate a possible transaction with U.S. Steel. Following its review, the special committee unanimously recommended that National Steel enter into the Option Agreement and pursue further discussions with U.S. Steel. The special committee will continue to actively participate in negotiations with U.S. Steel and will recommend to National Steel's full board what action, if any; it should take with respect to any definitive merger agreement with U.S. Steel. National Steel said that it did not expect to conclude negotiations regarding a merger agreement until U.S. Steel completes a review of National Steel's business, a process that is expected to require several weeks. Although U.S. Steel has the ability to exercise the option at any time during its term, National Steel understands that U.S. Steel does not currently intend to exercise the option or to consummate a merger with National Steel unless a number of significant conditions are satisfied. Some of these conditions would include approval of a strong remedy in connection with the pending proceedings under Section 201 of the Trade Act of 1974, enactment of a program sponsored by the federal government to provide relief from a significant portion of the steel industry's retiree legacy liabilities, a new contract with the United Steel Workers of America to provide labor cost savings and efficiencies, approval by the relevant antitrust authorities and a substantial restructuring of National Steel's existing debt and other obligations. Although preliminary discussions have been held with certain of the affected parties regarding these matters, there can be no assurance that understandings will be reached that would permit a combination of U.S. Steel and National Steel to be completed. Headquartered in Mishawaka, Indiana, National Steel Corporation is one of the nation's largest producers of carbon flat-rolled steel products, with annual shipments of approximately six million tons. National Steel employs approximately 8,400 employees. Please visit the National Steel's web site at www.nationalsteel.com for more information on the Company and its products and facilities. In May, NKK Corp.'s earnings reportedly fell deeply on hefty losses from the bankruptcy of its U.S. subsidiary National Steel Corp. and its undervalued securities holdings, the Troubled Company Reporter-Asia Pacific reports. It was also battered by the poor performance of its steel business. The Chiyoda-ku, Tokyo-based steel maker lost 67.59 billion yen ($544 million), compared with a profit of 96.99 billion yen a year ago. Sales declined 7.5 percent 1.654 trillion yen ($13 billion) from 1.787 trillion yen. For a copy of the press release, go to http://www.nationalsteel.com/ ORIENT TATEMONO: Court Approves Special Liquidation --------------------------------------------------- On December 25, 2002, the Tokyo District Court approved the start of special liquidation for Orient Tatemono KK, reports the Tokyo Shoko Research. The real estate firm has total liabilities of 6.7 billion yen and is located at Minato-ku, Tokyo, Japan. RESONA HOLDINGS: Reveals Joint Venture With BEA ----------------------------------------------- Resona Holdings announced the business tie-up with the Bank of East Asia The Daiwa Bank, Ltd. (Daiwa Bank, President: Yasuhisa Katsuta), one of the fully owned banking subsidiaries of Resona Holdings, Inc., came to an agreement with The Bank of East Asia, Ltd. (BEA, Chairman and Chief Executive: David K.P. Li) to enter into a business tie-up in the field of international banking services, in a response to the mounting needs among its customers for doing businesses in China and other Asian regions. By entering into the business tie-up with BEA, Daiwa Bank will be able to provide its customers with high-quality financial services offered through BEA's well-established network in those regions. 1. Objectives of the Tie-up The business tie-up with BEA will enable Daiwa Bank to compliment its international banking services and respond more comprehensively to the rising needs among its corporate customers for doing businesses in China and other Asian countries or regions. Since BEA has the largest branch network as a foreign financial institution operating in China, those customers doing businesses in China will be able to receive various local financial services through BEA's network. 2. Date for Commencement of the Tie-up January 27, 2003 3. Scope of the Business Tie-up (1) Provision of Local Financial Services through BEA's Network Daiwa Bank will introduce those customers considering or doing businesses in China and other Asian regions to BEA's offices. BEA will offer various local financial services based on standby letters of credit, etc. provided by Daiwa Bank. (2) Provision of Financial Services to BEA's Customers through Resona Group's Network in Japan Resona Group will provide financial services through its network in Japan for those BEA's customers doing businesses in Japan. Resona Group will also help BEA establish Japan Desks (planned in Tokyo and Osaka). (3) Mutual Exchange of Trainees Daiwa Bank and BEA will give considerations to exchanging trainees with a view to strengthening the mutual relationship. 4. Future Development The business tie-up will be commenced between Daiwa Bank and BEA at the beginning. However, other members of the Resona Group may also consider joining the tie-up with a view to strengthening the relationship with BEA as a group. In addition, Resona Group will explore the possibilities of expanding the scope of the tie-up to include other fields in order to continuously respond to the diversifying needs of group customers. The Troubled Company Reporter-Asia Pacific recently reported that Resona Holdings Inc. would ask for 2-3 billion yen in financing from its Hong Kong partner Bank of East Asia Ltd. The proceeds will be used to accelerate the disposal of its bad debts. The Company aims to raise around 100 billion yen in new capital to go toward its disposal of bad loans. Daiwa Bank Holdings, Inc. changed its name to Resona Holdings, Inc. on October 1, 2002. For more information, go to http://bankrupt.com/misc/tcrap_resona0128.pdf ========= K O R E A ========= DAEWOO GROUP: French Unit Declares Bankruptcy --------------------------------------------- The Briey commercial court of France has declared Daewoo-Orion television tube factory bankrupt after a large fire last week destroyed 30-40 percent of the indebted plant, AFX News said on Monday. The court was due to rule February 6 on whether the plant could continue operations but brought forward its deliberations after the fire. Unions said the fire is a convenient opportunity for Daewoo to withdraw from its subsidiary, Les Echos said. The Company will work with national government on a severance scheme for the employees, and will make every effort to re-industrialize the area. KOREA ELECTRIC: Plan to Privatize Affiliates Still Afloat --------------------------------------------------------- The Ministry of Commerce, Industry and Energy (MOCIE) will still continue plans to privatize all five of Korea Electric Power Corporation (KEPCO)'s power-generation affiliates, the Korea Herald reported on Tuesday, citing the Director of Strategic Planning Department, Choi Min-koo. The government will also carry out the break up of KEPCO's power distribution business into smaller units, planned to take place in March. The power firm has decided to allow all the bidders for the first bid for the South-East Power Co., including two domestic firms - SK Corp. and POSCO - one foreign consortium formed by Korea Independent Energy and a foreign Company to undertake due diligence of the power Company. Originally, 14 firms (six local, eight foreign) handed in letters of intent, but many have dropped out of the competition like Hyosung Corporation and Samtan Co. KEPCO will select the priority negotiation partner in the middle of next month. KEPCO has decided to sell Southeast Power since July. The unit has the least debt among the affiliates with 1.35 trillion won and capital of 1.37 trillion won. DebtTraders reports that Korea Electric Power Corp.'s 8.250 percent bond due in 2005 (KORE05KRN1) trades between 112.504 and 113.066. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=KORE05KRN1 =============== M A L A Y S I A =============== ABRAR CORPORATION: Defaulted Payment Status Unchanged ----------------------------------------------------- Abrar Corporation Berhad (Special Administrators Appointed) wishes to announce that there have been no changes to the status in payment since the Company's previous announcement made on 30 December 2002. The Company has been placed under the administration of Special Administrators since 27 May 2000 by Pengurusan Danaharta Nasional Berhad (Danaharta) pursuant to Section 24 of the Pengurusan Danaharta Nasional Berhad Act, 1998 (the Danaharta Act). With the appointment of the Special Administrators, there is a moratorium on the Company and no creditors may take action against the Company except in accordance with Section 41 of the Danaharta Act. The moratorium expires on 26 May 2003. On 1 November 2002, Public Merchant Bank Berhad (PMBB), on behalf of the Company, announced that the Company's debt restructuring proposal (the Workout Proposal) prepared by the Special Administrators of the Company, was approved by Danaharta in accordance with Section 45(2) of the Danaharta Act. Under Section 46(4) of the Danaharta Act, the Workout Proposal binds the Company, all members and creditors of the Company and any other person affected by the Workout Proposal. The Workout Proposal will address the Company's default in payments. On 23 December 2002, PMBB, on behalf of the Company, announced that the Securities Commission (SC) had vide their letters dated 18 December 2002 and 20 December 2002 approved the Company's Workout Proposal as proposed, subject to certain conditions to be fulfilled. ANSON PERDANA: February 22 30th AGM Scheduled -------------------------------------------- Anson Perdana Berhad wishes to inform that the Thirtieth Annual General Meeting (AGM) of the Company will be held on Saturday, 22 February 2003 at 11.30 a.m. at the Registered Office, Nos. 21 & 23, Jalan Hussein (Ground Floor), 30250 Ipoh, Perak Darul Ridzuan. The Company also advised that an ordinary resolution in respect of Authority to Allot and Issue Shares in General pursuant to Section 132D of the Companies Act, 1965 is being proposed for Shareholders' approval under Special Business at the AGM. To see full copy of the AGM Notice, go to http://www.bankrupt.com/misc/TCRAP_Anson0129.doc. INTAN UTILITIES: Posts Loan Defaulted Payment Summary ----------------------------------------------------- Further to the announcements dated 27 December 2002 and pursuant to Paragraphs 9.02 and 9.04 (1) of the Listing Requirements and Practice Note No. 1/2001, the Board of Directors of Intan Utilities Berhad announced the summary of the borrowings in default and the steps taken to address the defaults by IDS Electronics Sdn. Bhd. and IDS Technology Sdn Bhd, 69% effectively-owned subsidiaries of Intan Utilities Berhad. Details of which are found at http://www.bankrupt.com/misc/TCRAP_Intan0129.xls. LIEN HOE: Reaches Loan Stock Settlement With Holders ---------------------------------------------------- Lien Hoe Corporation Berhad announced that the holders of the Loan Stocks, at a meeting held on Monday, passed a special resolution to accept the Company's proposal for settlement of all claims and/or legal actions arising out of the Redeemable Secured Loan Stocks Due August 2000 between the Company and Universal Trustee (Malaysia) Berhad on the following terms: 1. The Company will pay the sum of RM50,000,000 on or before 31 December 2002 with the proviso allowing for an automatic extension of 40 days thereafter subject to the payment of an additional sum of RM10,000 per day until actual payment of the full agreed amount; and 2. Universal Trustee (Malaysia) Berhad will withdraw the 2 legal suits against the Company once the Company makes payment in accordance to clause 1 above. The Company has secured a new credit facility to effect the above proposed settlement, which is envisaged to take place, barring any unforeseen circumstances, within the next 2 weeks. MBF HOLDINGS: Disposes of Unit in Streamlining Exercise ------------------------------------------------------- The Board of MBf Holdings Berhad (MBfH) announced that MBfH has entered into a Share Sale Agreement with Binanamik Sdn Bhd (BSB) for the disposal of 100% equity interest comprising 2,000,000 Ordinary shares of RM1.00 each in MBf Property Services Sdn Bhd (MBfPS) for a total consideration of RM1.00. The consideration was arrived at on a willing buyer and willing seller basis. Information of BSB BSB is an investment holding company incorporated on 10 September 2002. It has an authorized and paid up share capital of RM100,000 and RM2 respectively. Information of MBfPS MBfPS was incorporated on 17 October 1983 and is principally involved in the provision of property management and consultancy services to property developers. The authorized and paid-up share capital is RM2,000,000 divided into 2,000,000 Ordinary shares of RM1.00 each. As at 31 December 2001, MBfPS has accumulated losses of RM417.93 million and negative shareholders' funds of RM415.93 million. Rationale for the Disposal The disposal is part of the rationalization and streamlining exercise of the MBfH Group. Financial Effect of the Disposal The disposal is not expected to have any material effects on the earnings and net tangible assets of MBfH Group for the current financial year ending 31 December 2003. However, there will be a write-back of accumulated losses estimated at RM52.60 million at Group level arising from the effects on the deconsolidation of subsidiaries. The date of investment in MBfPS by MBfH was on 17 October 1983 and the total cost of investment is RM1,020,000. However, full provision has been made for dimunition in the value of investment in MBfPS. Approvals Required The disposal is not subject to the approval of shareholders of MBfH. However, BSB will apply for approval from the Foreign Investment Committee. Directors And Substantial Shareholders' Interest Save as disclosed, none of the directors, substantial shareholders and persons connected to the directors and substantial shareholders of MBfH has any interest, direct or indirect in the said disposal. Directors' Recommendation The Directors of MBfH, having considered all aspects of the disposal, are of the opinion that the transaction is in the best interest of the Company and the terms are fair and reasonable. Document for Inspection The Share Sale Agreement may be inspected at the registered office of MBfH at Block B1, Level 9, Pusat Dagang Setia Jaya (Leisure Commerce Square), No. 9 Jalan PJS8/9, 46150 Petaling Jaya, Selangor Darul Ehsan, within fourteen (14) days from the date of this announcement pertaining to the disposal. MECHMAR CORP: KLSE Reprimands, Imposes Fine Over Listing Breach --------------------------------------------------------------- The Kuala Lumpur Stock Exchange (KLSE) in consultation with the Securities Commission (SC), publicly reprimanded and imposed a fine of RM30,000 on Mechmar Corporation (Malaysia) Berhad for breaching Paragraph 9.23(b) of the Listing Requirements (LR). Paragraph 9.23(b) of the LR states that a listed issuer's annual audited accounts together with the auditors' and directors' reports (AAA) shall be given to the KLSE for public release, within a period not exceeding 4 months from the close of the financial year of the listed issuer unless the annual report is issued within a period of 4 months from the close of the financial year of the listed issuer. The financial year-end of Mechmar was 31 December 2001 and hence its AAA was due on 30 April 2002. However, the AAA was only furnished to the KLSE on 30 May 2002. The public reprimand and fine were imposed pursuant to Paragraph 16.17 of the LR after having considered all relevant factors including the fact that Mechmar had previously breached the Main Board Listing Requirements (MBLR) and after consultation with the SC. The Exchange had publicly reprimanded and imposed a fine of RM25,000.00 on Mechmar on 31 August 2001 for its breach of Section 60(b) of the MBLR for failing to furnish the Exchange for public release its annual audited accounts together with the auditors' and directors' report for the financial year ended 31 December 2000 on or before 30 April 2001. The KLSE views the above contravention seriously and hereby cautions the Company and its Board of Directors on their responsibility to maintain appropriate standards of corporate responsibility and accountability in order to achieve greater disclosure and transparency to its shareholders and the investing public. NORTH BORNEO: Clarifies Sustainable Forest Management Report ------------------------------------------------------------ The North Borneo Corporation Berhad refers to the article appearing in the Daily Express dated 20th January 2003 in relation to the FMU 2 stating the following: "The State Government has revoked two Forest Management Unit (FMU) Agreements involving more than 135,000 hectares for failing to comply with the requirement set by the Forestry Department. It was reliably learnt that the revocation of both FMU agreements was made late last year. They were issued in 1997 to North Borneo Timber (with an area of 94,227ha under FMU 2, 05/97 SFMLA) and Modern Innovation Sdn Bhd (41,000ha under FMU 17, 08/97 SFMLA)." NBC, its wholly-owned subsidiary, The North Borneo Timbers Corporation Sdn Bhd and their Directors wish to inform that they have not received any notification from the Sabah Forestry Department nor any other relevant authorities in relation to the alleged revocation of the FMU 2 and are unaware of any revocation of the FMU 2 by the Sabah Forestry Department. The Company is making active efforts to establish the facts of the matter, and will make the necessary announcements to the KLSE after it has established with certainty the facts of the matter. PAN MALAYSIA: Not Affected by Unit's Dissolution ------------------------------------------------ Further to the announcement on 23 January 2003 on the Dissolution of Grand Union General and Motor Insurance Co. Ltd (GUG), a 55%-owned subsidiary of Pan Malaysia Holdings Berhad, the Company informed that the dissolution of GUG does not have any effect on the operations, earnings and net liabilities of the PMH Group. The accounts of GUG has not been consolidated with the accounts of the PMH Group since the financial year ended 31 March 1990. Winding-up order was made by the Hong Kong High Court against GUG on 12 December 1990. PANGLOBAL BHD: Unit's Dec Timber Volume Reaches 23,944.04cu/m ------------------------------------------------------------- PanGlobal Berhad wishes to announce that the production volume of timber of its wholly-owned subsidiary, Limbang Trading (Limbang) Sdn Bhd for the month of December 2002 was 23,944.04 cubic meters. COMPANY PROFILE The Group's principal activities include general insurance business, extraction of logs, sawmilling and manufacturing of veneer, coal mining, property investment and development, rental of office and commercial premises and operation of hotel apartments. The Company was originally a housing developer. In 1966, the Company disposed of these activities and entered into the towel and yarn manufacturing business. Over the years, the Company diversified its activities into property development, computers and insurance. The Company maintains its insurance operations through PanGlobal Insurance Bhd, with head office in Kuala Lumpur and branches in 12 states. It transferred its towel manufacturing operations to one of its subsidiaries in 1987, thus becoming a purely investment holding company. Subsequently, the Company, in 1994, disposed of its property development division and computer division and, in 1995, its textile operations. Following this, the Company became involved in timber extraction and related activities and operation of a coal mine. Both activities are carried out in Sarawak. An affected listed issuer under Practice Note 4/2001 of KLSE's Listing Requirements, the Company has submitted a proposed composite scheme of debt arrangement to the SC and the relevant authorities. The proposals are awaiting approval from SC, the High Court of Malaya and shareholders. A Restraining Order under Section 176 of the Companies Act, 1965, granted to PanGlobal together with four of its subsidiaries (PanGlobal Properties Sdn Bhd, Menara PanGlobal Sdn Bhd, Global Minerals (Sarawak) Sdn Bhd and Limbang Trading (Limbang) Sdn Bhd) has been extended to 15 November 2002. This Restraining Order affects only banking creditors. CONTACT INFORMATION: Level 27, Menara IMC 8 Jalan Sultan Ismail 50250 Kuala Lumpur Tel : 03-2019199 Fax : 03-2023977 TALAM CORPORATION: Hong Kong Subsidiary Dissolved ------------------------------------------------- On 13 May 2002, Talam Corporation Berhad had announced that Golden Glory Recreation Development Limited (Golden), a subsidiary of Talam which was incorporated in Hong Kong had commenced Members' Voluntary Winding-up pursuant to Section 230 of the Hong Kong Companies Ordinance and that Mr Wong Poh Weng and Mr Alan Thornton Rennie both of 7/F Allied Kajima Building, 138 Gloucester Road, Hong Kong were appointed as Liquidators for Golden on the same day. Talam wishes to announce that on 24 January 2003, a confirmation has been received from the Liquidator that Golden had been dissolved on 14 January 2003. TRANS CAPITAL: Parties Agree to SSA Deadline Extension ------------------------------------------------------ On 31 July 2002, AmMerchant Bank Berhad (formerly known as Arab- Malaysian Merchant Bank Berhad), on behalf of Trans Capital Holding Berhad, announced to the Kuala Lumpur Stock Exchange the Company's plans to regularize its financial condition, involving the Proposed Corporate and Debt Restructuring Scheme (Requisite Announcement). In relation to the Proposed Corporate and Debt Restructuring Scheme, AWC Solutions Facility Berhad (AWC) had entered into an agreement with TCHB and its Scheme Subsidiaries (as defined in the Requisite Announcement ) on 31 July 2002 setting out in detail the Proposed Corporate and Debt Restructuring Scheme (Master Agreement). It also entered into six(6) Share Sale Agreements dated 31 July 2002 (SSA) pertaining to the acquisition of equity interest in the Acquiree Companies (as defined in the Requisite Announcement). The Master Agreement and SSA are subject to certain conditions precedent, which were to be fulfilled on or before 31 December 2002. In relation thereto, AmMerchant Bank Berhad, on behalf of the Company, announced that at the request of AWC, all parties had agreed to extend the deadline for the fulfillment of the conditions precedent for a further period of six(6) months until 30 June 2003. The Proposed Corporate and Debt Restructuring Scheme collectively refers to: - Proposed Share Exchange - Proposed Debt Settlement Scheme - Proposed Acquisitions of Acquiree Companies - Proposed Restricted Issue - Proposed Placement and Public Issue - Proposed Transfer of Listing Status - Proposed waiver for certain of the Vendors from undertaking a mandatory general offer for the remaining Shares in AWC UCP RESOURCES: Requesting Requirement Waiver -------------------------------------------- Further to the announcement made on 24 January 2003, UCP Resources Berhad informed that in accordance with the KLSE Listing Requirements Paragraph 10.03(3), the Percentage Ratio of the related party transactions entered into by the Company and its subsidiaries with its Directors exceeded the 25% mark. Arising from the above, Paragraph 10.08(4) of the KLSE Listing Requirements states that the following must be complied with: i. To make an immediate announcement to the Exchange (as announced on 24 January 2003); ii. To appoint a main adviser; iii. To appoint an independent adviser; iv. To disclose all information in a circular to shareholders; and v. To seek shareholders' approval in general meeting. A request for a waiver from the above compliance (ii) to (v) has been made to the Exchange on 27 January 2003 and is currently pending approval. ===================== P H I L I P P I N E S ===================== DIGITAL TELECOM: Must Transfer Mobile License to Unit, NTC ---------------------------------------------------------- Digital Telecommunications Philippines Inc. (Digitel) must transfer its mobile network and license to unit Digitel Mobile before the latter is allowed to operate a mobile phone service, the Philippine Star and AFX Asia reported, citing the National Telecommunications Commission. Digitel had been planning to shift its mobile services to Digitel Mobile, while it concentrates on the fixed line business. Before a provisional authority is granted, the application will have to be taken up in several public hearings, the report said. According to a Wright Investor's Service dossier, Digitel at the end of 2001 had negative working capital, as current liabilities were PHP8.99 billion while total current assets were only PHP6.01 billion. MABUHAY VINYL: Appealing Verdict Against IR Commissioner -------------------------------------------------------- Mabuhay Vinyl Corporation (MVC) advised that the Court of Tax Appeals (CTA) has promulgated its resolution in connection with the case Mabuhay Vinyl Corporation vs. Commissioner of Internal Revenue, CTA Case No. 5669. Please note that out of the alleged deficiency withholding and income taxes for taxable years 1988 and 1989 supposedly amounting to 776,993,983.92 pesos the CTA has ordered Mabuhay Vinyl Corporation to pay the amount of 119,209,625.29 pesos purportedly representing deficiency withholding taxes, plus 20 percent delinquent interest computed from February 24, 1998 until fully paid. The Company believes that the CTA erred in ordering such payment of deficiency withholding tax considering that the Bureau of Internal Revenue's assessment has no legal basis. The Company shall be filing a motion for reconsideration with the CTA and, if necessary, to the Court of Appeals. For more information, go to http://www.pse.org.ph/html/disclosure/pdf/dc2003_0149_MVC.pdf MULTINATIONAL INTERNATIONAL: Owners Charged With Code Violations ---------------------------------------------------------------- The Makati Prosecutors Office has charged the owners of Multinational International Holdings Inc., Saturnino and Rosario Baladjay, with violation of the registration requirements of the Securities Regulation Code (SRC), the Philippine Star said on Tuesday. If found guilty, Rosario and Saturnino and other responsible officers of Multitel face seven to 21 years of imprisonment or a fine of 50,000 pesos to 5 million pesos, or both in the discretion of the court. The Multitel Group's modus operandi was to offer high interest rates of as much as 15 percent a month for a six-month placement of 100,000 pesos. The Company was issued a cease-and-desist order in January 2002 for offering investment contracts without prior registration with the SEC. Multitel reportedly scheduled the membership meeting on Monday at 6 p.m. at the Quirino Grandstand. The SEC estimates that the Multitel Group collected between 20 billion pesos and 25 billion pesos from various individuals all over the country. The group reportedly employs about 600 agents or what they term as counselors. One counselor was said to handle as much as 700 million pesos worth of accounts. NATIONAL BANK: Posts FY02 Y1.9B Net Loss ---------------------------------------- Philippine National Bank (PNB) recorded a net loss of 1.9 billion pesos in the fiscal year 2002, lower than the year- earlier loss of 4.1 billion, according to AFX Asia. The narrowed loss was due to various revenue-generating and cost-cutting initiatives. The bank and major shareholder's Lucio Tan and the government signed in May 2002 a rehabilitation program for the bank. NATIONAL BANK: NPL Ratio Rose Above 50% in 2002, says S&P --------------------------------------------------------- A recent announcement that non-performing loans at the Philippine National Bank (CCCpi) in 2002 hit 51 percent of total loans (based on regulatory definition) is in line with Standard & Poor's expectations, given that the bank is one of the weakest in the system, with poor asset quality and insufficient provisioning, itself constrained by severely weakened capitalization. With the newly signed Special Purpose Vehicle (SPV) Law in January 2003, Philippine banks (Philippine National Bank included), are redoubling their efforts to set up asset management companies (AMC's) to help dispose of bad loans and rebuild their balance sheets. While Standard & Poor's views this as a positive development toward resolving the system's asset quality problems, the success of this approach will be determined largely by the structure of the legal framework in which AMC's are allowed to operate and dispose of impaired assets. Pending public disclosure of the details of such transactions, the creation of an AMC would technically lower a bank's NPA's so it can focus on quality accounts. However, depending on the terms of the agreements, if there is a significant haircut on the value of assets transferred to an AMC that is larger than already provisioned, profitability of the banks could further weaken in the short-to-medium term. NATIONAL POWER: Schedules Coal Supply Auction Today --------------------------------------------------- The National Power Corporation (NPC) will hold an auction for its coal requirements on January 29 after purchase delays left it with one month's inventory, Philippine Daily Inquirer and Bloomberg reported. The power firm needs 2.67 million metric tons of coal for power plants that provide 40 percent of the country's energy needs, the report said. The National Power Corporation (Napocor) is set to complete its restructuring by the end of February, the Troubled Company Reporter-Asia Pacific reported on Monday. As a result of this move, 3,800 employees out of its 5,100-strong work force would be retained to fill in the positions in a reorganized Napocor. Napocor will post vacant positions within the firm, which must be filled by February 28, 2003. At least 1,500 Napocor employees will be retrenched and retired as part of restructuring program in the privatization of the state-owned firm. PHILIPPINE LONG: Continues to Focus on Debt Reduction ----------------------------------------------------- Following the successful completion of its liability management exercise involving $1.3 billion in debts, telecommunications giant Philippine Long Distance Telephone Co. (PLDT) will continue to focus on reducing its debts, the Philippine Star said on Monday, citing PLDT President and Chief Executive Officer Manuel V. Pangilinan. Pangilinan made this comment after PLDT gained the commendation of the international banking community as a result of the successful implementation of its liability management initiatives in 2002. The Asset Asian Awards commended PLDT for completing a series of initiatives that covered the export credit agencies, the public debt capital market as well as the syndicated bank loan market. The initiatives included putting in place a $149-million loan facility from KfW of Germany in January 2002, launching a two- tranche $350-million global bond offering in late April 2002, and signing of a $145-million equivalent syndicated term loan facility in September 2002. PLDT was able to surmount the challenge posed by debts falling due between 2002 and 2004 amounting to around $1.3 billion, while at the same time demonstrating to the investor community that the Company's cash flows supplemented by dividends from Smart continue to be solid in the coming years. ================= S I N G A P O R E ================= HOTUNG INVESTMENT: Issues Profit Warning ---------------------------------------- The Board of Directors of Hotung Investment Holdings Limited has advised the Board, that the full year ended 31 December 2002 financial results indicate that the Company and its subsidiaries (the Group) will record a substantial loss. For the first half of 2002, the Group had announced on 18 September 2002 a loss of NT$229 million. The second half of 2002 losses are expected not to exceed NT$550 million. This is attributable to the further unanticipated deterioration in the global equity markets in 2H2002, in particular the telecommunication stocks and poor performance of technology companies. Much larger provisions on investments have been made as a result of the deteriorating market conditions. In addition, the current external auditors have advised the Group to implement a one-off refinement of the cost allocation methodology applied by the Group on its investments. The effect of this new refinement increases the cost of investments disposed in 2002, and consequently, resulted in increased losses on disposal. The Board expects to announce the Group' financial results for the full year ended 31 December 2002 in March 2003. NEPTUNE ORIENT: Issues Clarification Re APL Logistics ----------------------------------------------------- In the wake of the Straits Times article of 25 January, 2003 headlined "NOL Reverses Course on Logistics Ventures", Neptune Orient Lines Ltd (NOL) clarifies that its commitment to growing its subsidiary, APL Logistics Ltd (APL Logistics), is unchanged. The article put a number of comments in a recent interview out of context. The suggestion in the article that APL Logistics was no longer pursuing the higher-value business of providing supply-chain solutions is incorrect. APL Logistics will continue to focus on growing those areas of its business that provide end-to-end supply chain solutions, and will also ensure that it focuses on the core business of warehousing and freight consolidation, thereby building on its existing book of business in its effort to return to profitability. APL's acting CEO also did not forecast NOL was likely to return to profit this year, as stated. Consistent with other comments by Company officials, he said the Company (APL) was targeting a return to profitability this year. Meanwhile, Dow Jones reported that the shipping Company lost US$151 million in the six months to June 30, a development that analysts say likely contributed to the departure of Chief Executive Flemming Jacobs on January 7. SEATOWN CORPORATION: Files for Judicial Management -------------------------------------------------- The Directors of Seatown Corporation Ltd. and its wholly owned subsidiary, Seatown Construction Pte Ltd SCPL have filed Judicial Management petitions with the High Court of Singapore on 20 January 2003 and 15 January 2003 respectively. The hearing dates for the Company and SCPL are 4 February 2003 and 7 February 2003 respectively. An Interim Judicial Manager has been appointed for SCPL on 20 January 2003 pending the hearing on 7 February 2003. VIKAY INDUSTRIAL: Completes Sale of Plot Land in Johor ------------------------------------------------------ The Board of Directors of Vikay Industrial Ltd announced that on 31 December 2002, the Company's wholly owned subsidiary, Vikay Technology Sdn Bhd, has completed its sale of CT 3625 Lot 6197, District of Johor Bahru, State of Johor, Malaysia (the Property) for a consideration of RM 2,200,000.00 (the Sale). The Sale of the Property was pursuant to the restructuring exercise of the Company consequent to its judicial management. As disclosed in the circular dated 2 November 2001 of the Company to the shareholders, the Property comprised part of the assets to be disposed from the Group pursuant to the restructuring plan as it was a non-productive and non-viable asset, which was not critical to the operations of the Company. The proceeds from the sale had been paid over to Silverstream II Pte Ltd, the special purpose vehicle set up by the former creditors of the Company. The Property did not have a carrying value in the Company's group accounts. The sale therefore did not have a material impact on the earnings per share and net tangible assets per share of the Group. None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the Sale. =============== T H A I L A N D =============== JASMINE INT'L: Rehab Plan Submitted to Official Receiver -------------------------------------------------------- Chaengwatana Planner Co., Ltd., as the Planner of Jasmine International Public Company Limited, in reference to the Central Bankruptcy Court's order on September 17, 2002 that the Company be under rehabilitation process, announced that Company's business rehabilitation plan is completed and submitted to the Official Receiver on 27 January 2003. KRISDAMAHANAKORN PUBLIC: TAMC OKs Bt2,375.96 Debt Restructuring --------------------------------------------------------------- The Board of Thai Asset Management Corporation (TAMC) has approved Krisdamahanakorn Public Company Limited's restructuring of its Bt2,375.96 millions existing debt (or 11.63% of Total debt) and the new debt restructuring plan agreed with Krung Thai Bank Public Ltd (KTB). Currently, both creditors and company are in the process of preparing the contract agreement and the detail of these debt restructurings are provided as follow: 1. Debt restructuring plan with TAMC 1.1 Relevance debt include Bt2,375.96 millions in Principal and Bt178.20 millions in interest (All other interest is hair cut) 1.2 Transfer all collateral asset to TAMC 1.3 Company shall repay Bt103.49 millions loan for 7 years with the beginning interest rate at MLR-4% and shall make principal repayment in the fourth, fifth, sixth, and seventh year.1.4 Company is entitled to Bt200 millions debt for 7 years with no interest and provide the right to TAMC to receive ordinary shares at the price of Bt10 as debt repayment in the fourth year. 1.5 Company transfer debt to equity in the category of preference shares which can be transferred to 182,412,857 of ordinary shares at the price of Bt10. 2. Debt restructuring plan with KTB 2.1 Relevance debt includes Bt3,824.08 millions and Bt2,023.80 millions accrued interest at 30 September 2002, summing to Bt5,847.88. Company in allowed to calculate the principal plus interest at Bt4,008.59 millions and hair cut all other interest. 2.2 Transfer all collateral to repay debt at Bt2,521.23 millions 2.3 Transfer debt to equity in the category of preference shares for 158,965,978 shares at the price of Bt10. Henceforth, company expects to sign debt restructuring contract agreement with both mentioned creditors within this month. SOCON ENGINEERING: Files Business Reorganization Petition --------------------------------------------------------- Socon Engineering Company Limited (DEBTOR), engaged in iron transformation and machinery setting business, filed its The Petition for Business Reorganization was filed in the Central Bankruptcy Court: Black Case Number 939/2544 Red Case Number 871/2544 Petitioner: SOCON ENGINEERING COMPANY LIMITED Debts Owed to the Petitioning Creditor : 890,497,539.08Baht Date of Court Acceptance of the Petition : September 6, 2001 Date of Examining the Petition: October 1, 2001 at 9.00 A.M. Court Order for Business Reorganization : October 1, 2001 and Appointed the Debtor's Executive to be an Interim Executive Announcement of Court Order for Business Reorganization in Matichon Public Company Limited and Siam Rath Company Limited: October 17, 2001 Announcement of Court Order for Business Reorganization in Government Gazette : November 1, 2001 Court Order for Appointment of Planner : December 7, 2001 Announcement of Court Order for Appointment of the Planner in Matichon Public Company Limited and Siam Rath Company Limited: December 20, 2001 Announcement of Court Order for Appointment of the Planner in Government Gazette : January 8, 2002 Deadline for the Planner to submit the Reorganization Plan to the Official Receiver: April 8, 2002 Planner postponed the Date to submit the Business Reorganization Plan to Official Receiver #1st : May 8, 2002 Planner postponed the Date to submit the Business Reorganization Plan to Official Receiver #2nd : June 8, 2002 Central Bankruptcy Court had issued the Order for Canceling the Order for Reorganization of Socon Engineering Company Limited since June 17, 2002 Announcement of Court Order for Canceling the Order for Reorganization in Matichon Public Company Limited and Siam Rath Company Limited: June 26, 2002 Announcement of Court Order for Canceling the Order for Reorganization in Government Gazette : July 23, 2002 Contact : Ms. Umaporn Tel, 6792525 ext. 142 TELECOMASIA CORPORATION: Announces Debenture Issuance, Offering --------------------------------------------------------------- Enclosure: Summary of Significant Details of Secured debenture with periodic payments of TelecomAsia Corporation Public Company Limited No. 1/2546, due 2007. With regard to the resolution of the Extraordinary General Shareholders Meeting No. 1/2544 held on 28th June 2002, of TelecomAsia Corporation Public Company Limited approving the issuance and offer to sell various types of debentures in one whole lot or in multiple placements, depending on the discretion and conditions of the Board of Directors, and/or persons assigned by the Board of Directors: The principal amount of debentures will not exceed Bt36,000 million. The Company has already been granted an approval of the issuance and offering to public of the aforesaid Thai Baht Debentures by the Office of the Securities and Exchange Commission for 3 tranche (including this last tranche), which are Tranche Offering Period Amount of the Debentures 1 7th - 14th October 2002 Bt11,715.40 million 2 7th - 14th October 2002 Bt6,750.00 million 3 10th - 14th February 2003 Bt2,000 million, with reserved amount for additional offering up to Bt1,600 million. Details of the Debentures can be found at http://www.bankrupt.com/misc/TCRAP_TA0129.pdf. 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, Maria Vyrna Nineza-Merlin, Maria Cristina Pernites-Lao, Editors. Copyright 2003. 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. 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