/raid1/www/Hosts/bankrupt/TCRAP_Public/030131.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
Friday, January 31, 2003, Vol. 6, No. 21
Headlines
A U S T R A L I A
ANACONDA NICKEL: Issues MatlinPatterson Offer Update
ANACONDA NICKEL: Mongoose Dispatches Rights Offer Document
ANACONDA NICKEL: Metal Asserts Circumstances "Unacceptable"
AUSTRALIAN GAS: Allots $7M for NGC Gas Treatment Plant Upgrade
BURNS, PHILP: Moody's Lowers Rating to B3; Outlook Negative
STADIUM AUSTRALIA: Discloses Meeting Results
STRAITS RESOURCES: Releases Q402 Activities Summary Report
C H I N A & H O N G K O N G
ASIA GLOBAL: Court Approves Assets Sale to Asia Netcom
CIL HOLDINGS: Price, Turnover Movements Unexplainable
FAVRIT DEVELOPMENT: Winding Up Sought by Nan Fung
MACRO PACIFIC: Winding Up Petition Hearing Set
PCCW LIMITED: Appoints Agent for Odd Lot Trading Arrangement
STRONG FORCE: Winding Up Petition Slated for Hearing
WINKER DEVELOPMENT: Winding Up Petition Pending
YORTER ELECTRONICS: Awaits Petition to Wind Up
I N D O N E S I A
* IBRA Launches PPAP Phase 2
J A P A N
FUJITSU LIMITED: Signs MoU With AU Optronics
HITACHI LIMITED: Unveils Mid-Term Business Plan
KANKO NIPPON: Golf Course Applies for Rehab
KINKI NIPPON: R&I Assigns BBB+
MISAWA HOMES: Reorganizes Group Structure
NIPPON STEEL: President Akira Chihaya Quits Post
NEC CORPORATION: Chip Unit Initial Share Sale May Raise $846M
NEC CORP.: Plans Broadcasting Systems Manufacturing Venture
NIIGATA ENG'NG: IHI, DBJ Set Up New Firm to Acquire Operations
NISSHO IWAI: Expects Losses This Year
TOKYO HEISEI: Real Estate Firm Enters Bankruptcy
TOKYU DEPARTMENT: Converts Y70B Debts to Syndicated Loan
TOSHIBA CORPORATION: 3Q02 Net Loss Narrows to Y6.9B
K O R E A
CHOHUNG BANK: Posts FY02 Y586B Net Loss
HYNIX SEMICONDUCTOR: Q402 Net Loss Narrows to W917.1B
HYNIX SEMICONDUCTOR: Signs MoU With KEB
HYUNDAI HEAVY: Allegedly Falsified Year 2000 Financial Results
HYUNDAI MERCHANT: Audit Board Releases Probe Findings
M A L A Y S I A
ACTACORP HOLDINGS: Provisional Liquidator Appointed to VPSSB
AKTIF LIFESTYLE: Furnishes Additional Writ of Summons Info
AOKAM PERDANA: BNM Approves RCSLS Proposed Issuance
DENKO INDUSTRIAL: Approved PCDRS Implementation Underway
JASATERA BHD: FIC OKs Revised Proposed Recapitalization Exercise
HAP SENG: Disposes of Entire EAFL Shares
KIARA EMAS: Submits Monitoring Accountant Appointment Waiver
KRETAM HOLDINGS: Writ of Summons Hearing Scheduled in May
KRETAM HOLDINGS: Obtains Capital Reduction Court Order
MALAYSIAN PLANTATIONS: Proposes CP/MTN Program to Finance Debt
OMEGA HOLDINGS: Inks Proposed Restructuring Scheme Agreements
PARIT PERAK: Unit Receives Unsettled Loan-Related Summons
PICA (M) CORPORATION: Provides Credit Facilities Status Update
PROMET BERHAD: Enters Restructuring Scheme MOU With MERSIK
SOUTHERN PLASTIC: FI Gives PDRS Conditional Approval
P H I L I P P I N E S
DIGITAL TELECOMMUNICATIONS: Nearing Tie Up Deal With Globe
GLASGOW CREDIT: Owners Face Criminal Charges
S I N G A P O R E
EXCEL MACHINE: Joint Petition Hearing Scheduled Today
VIKAY INDUSTRIAL: Unveils Property Disposal
T H A I L A N D
BANGCHAK PETROLEUM: Appoints Surapong-rukcharoen to BOD Chair
THAI PETROCHEMICAL: EPL Welcomes Bankruptcy Court Judges' Visit
* DebtTraders Real-Time Bond Pricing
- - - - - - - -
=================
A U S T R A L I A
=================
ANACONDA NICKEL: Issues MatlinPatterson Offer Update
----------------------------------------------------
The Independent Directors of Anaconda Nickel Limited (Anaconda)
have been advised on Wednesday that Australian Securities and
Investments Commission (ASIC) has granted the modifications
which are necessary to allow the MatlinPatterson Global
Opportunities Partners LP (MatlinPatterson) offer for Anaconda
shareholders' rights entitlements (Rights Offer) to proceed.
Accordingly, the Rights Offer may be open for acceptance by
rights holders as early as Thursday.
The Independent Directors have not yet seen the Rights Offer
documents.
The Independent Directors and their advisers are continuing to
assess the highly complex and conditional offer proposed by
MatlinPatterson and are in ongoing discussions with
MatlinPatterson in respect to various matters in regard to their
offer.
The Independent Directors' prime focus is to ensure the
implementation of the Creditors Scheme, which underpins the
future of Anaconda. An issue of serious concern is the potential
impact of the MatlinPatterson offer as currently formulated on
the Court approved Schemes.
The Independent Directors will finalize their assessment of the
offer shortly and communicate their recommendation to
shareholders as soon as possible. The Independent Directors thus
advise shareholders to take no action with respect to the Rights
Offer at this time.
CONTACT INFORMATION: John Quayle
Company Secretary
+61 8 9212 8400
Tony Dawe
Ward Holt Corporate Communication
+61 8 9221 8722
ANACONDA NICKEL: Mongoose Dispatches Rights Offer Document
----------------------------------------------------------
MatlinPatterson Global Opportunities Partners LP (the Fund)
announced Thursday that its wholly owned subsidiary, Mongoose
Pty Limited ACN 060 370 783 (Mongoose), commenced its dispatch
of offer documents to shareholders of Anaconda Nickel Limited
ACN 060 370 783 (ANL), in relation to Mongoose's offer for all
of the ANL rights (Rights) issued under ANL's 14 for 1 pro-rata
renounceable rights issue (Rights Offer). The offer period under
the Rights Offer has now commenced.
Mongoose is offering to acquire all of the Rights for $0.01 cash
per Right. As ANL shareholders receive 14 Rights for each ANL
share they hold, this equates to $0.14 for the 14 Rights
attached to each ANL share. Mongoose is also offering a facility
under which, instead of receiving cash for their Rights,
Mongoose will pay the cash to ANL on behalf of the ANL
shareholder by way of subscription for new ANL shares under the
ANL rights issue. ANL shareholders can choose this option for
any or all of their Rights.
The Rights Offer will close at midnight (Sydney time) on 13
February 2003 (unless withdrawn or extended).
Mongoose is also making offers for all of the shares in ANL on
issue as at 28 January 2003 for $0.12 per share (Share Offer). A
Bidder's Statement for the Share Offer was lodged with ASIC on
22 January 2003 and it is presently proposed that the Bidder's
Statement will be sent to shareholders on 5 February 2003.
The Rights Offer is conditional on all of the conditions of the
Share Offer being fulfilled or waived on or before the end of
the offer period under the Rights Offer. On 29 January 2003 ASIC
granted to Mongoose the ASIC relief referred to in subparagraph
7.6(b)(i) of the Rights Offer document. This relief is an
exemption under section 653A of the Corporations Act so that
Mongoose may exercise ANL rights acquired by Mongoose under the
Rights Offer once the Share Offer is unconditional without
breaching section 606 of the Corporations Act. The Share Offer
is now free from that condition.
WHY YOU SHOULD ACCEPT THE SHARE OFFER AND RIGHTS OFFER
The combined total consideration of A$0.26 to be offered by
Mongoose under the Share Offer and Rights Offer to acquire each
ANL share and the 14 Rights attached to each ANL share is 33%
higher than the weighted average price for ANL shares during the
period from the date of the first announcement on 25 September
2002 by ANL of the proposal to make the rights issue and 21
January 2003 (ie the period during which the ANL shares were
effectively trading `cum rights').
It is likely that the ability for ANL shareholders to sell their
Rights on ASX will be very limited. The Rights Offer enables ANL
shareholders to sell their Rights in circumstances where, if
they do not wish to exercise their ANL rights, it may be
difficult for them to otherwise dispose of them for value.
The cash Rights Offer enables ANL shareholders to realize
substantial value for the Rights issued to them at no
application price and without them having to exercise the Rights
and paying the subscription price.
Under ANL's rights issue ANL shareholders must spend an
additional A$0.70 for every ANL share they currently hold if
they wish to retain their current ownership percentage. If ANL
shareholders accept the Rights Offer and the Share Offer, they
will receive a total of A$0.26 for each ANL share they hold.
If ANL shareholders do not exercise their Rights, their
shareholding in ANL will be significantly diluted. As
underwriter of the rights issue, Glencore International AG's
shareholding in ANL could increase to 95.6% if no other
shareholders accept the rights issue.
If the Fund is successful in its objective of gaining control of
ANL, as a financial investor, the Fund's interests in increasing
the value of ANL shares will be closely aligned to the interests
of all ANL shareholders. This may not be the case where control
of ANL is gained by a shareholder who has operational or
strategic objectives in respect of ANL which are not necessarily
aligned with increasing shareholder value.
ADDITIONAL INFORMATION
Mongoose has entered into a pre-bid acceptance agreement (Pre-
Bid Agreement) with Anglo American Investments (Australia)
Limited CAN 004 639 561 (a wholly owned subsidiary of Anglo
American p1c) (Anglo) under which Anglo has agreed to accept the
Share Offer in relation to 91,800,000 ANL shares owned by it
(representing 19.9% of the total ANL shares on issue) and has
also agreed to accept the Rights Offer in respect of all of
Anglo's entitlement to Rights being 1,532,458,914 Rights
(representing 23.7% of the total number of Rights).
As the Rights Offer is currently scheduled to close on 13
February 2003 and ANL's rights issue is currently scheduled to
close on 14 February 2003, it is important that ANL rights
holders make a decision without delay as to whether to accept
the Rights Offer, exercise their Rights, sell them (on ASX or
otherwise) or let them lapse.
Go to http://www.bankrupt.com/misc/TCRAP_ANL0131.pdfto see
Mongoose' rights offer document to ANL shareholders for all of
their ANL rights issued under ANL's 14 for 1 pro rata
renounceable rights issue and a notice by Mongoose under
subsection 630(4) of the Corporations Act in relation to
Mongoose's takeover bid for all of the ANL shares.
ANACONDA NICKEL: Metal Asserts Circumstances "Unacceptable"
----------------------------------------------------------
The Takeovers Panel has received an application from Metal
Holdings P/L, a company associated with Mr Andrew Forrest
seeking a declaration of unacceptable circumstances, and final
orders, in relation to the affairs of Anaconda Nickel Limited
(Anaconda).
The application is for a declaration that the underwriting by
Glencore International AG (Glencore) of the 14-for-1 pro rata
renounceable rights issue (the Rights Issue) being made by
Anaconda under a prospectus dated 20 January 2003 constitutes
unacceptable circumstances. Glencore is the underwriter for the
Rights Issue. The application asserts that Glencore is a related
party to Anaconda and therefore should not be allowed to
underwrite the Rights Issue, and potentially materially increase
its control over Anaconda, without the approval of the unrelated
shareholders of Anaconda.
The application seeks orders that Glencore not underwrite the
Rights issue without the approval of the shareholders of
Anaconda other than Glencore and its associates.
The Panel has not yet sought the views of other persons
potentially involved in the application and has therefore formed
no views on the application.
The President of the Panel has appointed the Anaconda 01 Panel,
Brett Heading, Tro Kortian and Peter Scott, to consider the
Anaconda 02 application.
AUSTRALIAN GAS: Allots $7M for NGC Gas Treatment Plant Upgrade
--------------------------------------------------------------
NGC Holdings Limited, a subsidiary of The Australian Gas Light
Company, on Thursday said it will commit $7 million to return
its Kapuni Gas Treatment Plant to full processing capacity and
to expand LPG storage at the site.
The project, which will involve recommissioning one of the
plant's three process trains and adding a further 100 tons of
LPG Storage, is expected to be completed in October this year.
NGC Chief Executive, Mr Phil James, said: "Returning the third
process train to operation will restore the Kapuni plant to full
capability and increase its current capacity to produce retail
market specification gas by around 30%. This will not only
enable the processing of greater quantities of Kapuni gas to
help meet retail market requirements, it enhances the strategic
nature of the plant to process new gas discoveries that may
require carbon dioxide removal before delivery into the market."
Mr James said there will be a future heavier reliance on the
Kapuni field to supply New Zealand's retail gas market. However,
Kapuni gas has a high (45%) carbon dioxide content, which needs
to be removed to meet the specified standard for this market.
NGC's Gas Treatment Plant is comprised of three trains for
removing carbon dioxide. Two of these were upgraded in 1995 as
part of a three-year, $25 million plant refurbishment project.
The third has not been used since that time as it was not
required in the prevailing retail market supply environment.
Since 1986, most of the Kapuni gas has been processed for
liquids removal, with the carbon dioxide left in the gas stream
to provide a carbon-rich blendstock gas for ethanol production.
Gas liquids in the form of LPG and natural gasoline are
extracted from the raw gas during the treatment process.
LPG storage at the plant will almost double from the current 130
tons to 230 tons to cope with the additional LPG generated from
the recommissioning of the third process train. This would also
be valuable in providing an improved storage buffer for an
expanding LPG market.
BURNS, PHILP: Moody's Lowers Rating to B3; Outlook Negative
-----------------------------------------------------------
Moody's Investors Service on Thursday assigned the following
ratings to Burns, Philp & Company Limited:
1. A$100 million senior secured revolving credit maturing
2007 - B1;
2. A$1.3 billion senior secured Term Loan A, maturing 2007 -
B1;
3. US$375 million senior secured Term Loan B, maturing 2009 -
B1;
4. US$150 million Senior Subordinated Notes, due 2011 - B3;
5. US$400 million 9.75% Senior Subordinated Notes, due 2012 -
downgraded to B3 from B2;
6. Senior Implied - downgraded to B1 from Ba3; and
7. Unsecured Issuer Rating - downgraded to B2 from B1.
The ratings outlook is negative.
The downgrades follow Burns Philp's unsolicited cash offer for
all the shares of Goodman Fielder Limited (GMF). At the existing
offer price of A$1.85/share, the acquisition cost would total
A$2.4 billion (US$1.4 billion), including fees and existing GMF
debt (about 7.5x estimated GMF EBITDA). In addition, integration
of GMF could be challenging, given GMF's large size relative to
Burns Philp and Burns Philp's limited knowledge of GMF's
business.
The negative ratings outlook reflects uncertainties about GMF's
underlying financial position combined with integration risks.
Recurring restructuring charges, asset sales, and now dated
audited financials (as of 6/30/02) make it difficult to
ascertain GMF's run-rate earnings, liabilities, and working
capital needs.
The ratings outlook could stabilize if the GMF acquisition is
not concluded and proceeds from the US$150 million senior
subordinated notes are returned to investors. The ratings
anticipate continued acquisition event risk, but could be
sensitive to large, company transforming transactions that are
aggressively financed.
STADIUM AUSTRALIA: Discloses Meeting Results
--------------------------------------------
MTM Investment Management Limited advised on Wednesday that it
has been replaced by James Fielding Funds Management Limited as
responsible entity of the Stadium Australia Trust as a result of
a meeting of members this morning. Notice for this meeting was
contained in the explanatory memorandum dated 27 December 2002.
Prior to inviting members to consider the following two
resolutions:
* Mr Michael Easson was appointed chairman of the meeting by
a vote on a show of hands; and
* the chairman of the meeting reported that the following
proxies had been submitted:
REMOVAL OF RESPONSIBLE ENTITY OF SAT: NO OF VOTES % OF
(RESOLUTION 1) VOTES
Number of votes cast 'FOR' the resolution 79,385,910 99.18
Number of votes cast 'AGAINST' 247,300 0.31
Number of votes cast 'ABSTAIN' 7,000 n/a
Number of votes cast 'OPEN' 402,500 0.51
TOTAL 80,042,710 100.00
APPOINTMENT OF A NEW RESPONSIBLE ENTITY OF SAT:
(resolution 2)
Number of votes cast 'FOR' the resolution 79,304,910 99.08
Number of votes cast 'AGAINST' 300,882 0.38
Number of votes cast 'ABSTAIN' 13,418 n/a
Number of votes cast 'OPEN' 423,500 0.54
TOTAL 80,042,710 100.00
RESULTS OF VOTING:
Each of the following resolutions was carried by a show of ands:
REMOVAL OF RESPONSIBLE ENTITY OF SAT: (RESOLUTION 1)
By show of hands.
That, subject to the passing of Resolution 2, MTM Investment
Management Limited (ACN 093 504 155) be removed as the
responsible entity of Stadium Australia Trust ASRN 093 502 473.
APPOINTMENT OF A NEW RESPONSIBLE ENTITY OF SAT: (RESOLUTION 2)
By show of hands.
That James Fielding Funds Management Limited (ACN 067 417 663)
(JFFM) be chosen and appointed as the new responsible entity of
Stadium Australia Trust ASRN 093 502 473 upon the valid removal
of MTM Investment Management Limited as responsible entity
pursuant to Resolution 1.
Regarding the voting interests of Convertible Noteholders:
* five of the six Convertible Noteholders submitted proxies
in favor of both resolutions, whilst one Convertible Noteholder
did not submit a proxy; and
* based on an independent valuation, MTM Investment
Management Limited advised that each Convertible Noteholder had
a NIL voting interest.
STRAITS RESOURCES: Releases Q402 Activities Summary Report
----------------------------------------------------------
Straits Resources Limited issued a summary of its fourth quarter
activities report:
* Agreement reached for the sale of Nifty and Straits' 50%
share of Maroochydore to Aditya Birla Group.
* Farm-in agreement reached for the Kingston Gold Project, a
prospective Greenstone Belt east of Kalgoolie, held by
Eaglefield Holdings.
* Revenue of $42.2 million for the quarter and $145.7 million
for the year.
* Attributable copper cathode production of 4,849 tons for
the quarter and 23,432 tons for the year.
* Coal sales of 550,000 tons for the quarter and 2.0 million
tons for the year.
PRODUCTION
Straits Resources Limited operates three mines - Nifty Copper
Operation in Western Australia, Girilambone Copper Mine in New
South Wales, and Sebuku Coal Mine in Kalimantan, Indonesia.
PRODUCTION/
SALES QUARTERS ENDED YEAR TO
31 Dec 02 31 Dec 02 31 Dec 01
Copper Cathode
Nifty Tons 4,439 21,574 22,111
Girilambone Tons 410 1,858 3,999
Total mine production Tons 4,849 23,432 26,110
Attributable to
Straits
Nifty Tons 4,439 21,574 22,111
Girilambone Tons 410 1,858 2,110
Straits - Total
production Tons 4,849 23,432 24,221
Straits - Total sales Tons 4,634 23,215 24,419
Sebuku Coal Mine
Coal mined '000t 662 2,455 2,249
Product coal '000t 571 2,065 1,966
Sales '000t 550 2,005 1,978
Revenue
Sales revenue A$'000 42,210 145,647 144,020
Nifty Copper Operation, Western Australia
(Straits Resources Limited - 100%)
Special Act Mining Lease 271
M 45/752, 753 and 754 (applications)
Miscellaneous Licences L45/74, 91 and 102
Nifty produced 4,439 tons of copper cathode during the December
quarter. Cash operating costs were US$0.66/lb.
Production for the year was 21,574 tons, a 2% decrease on the
previous year with cash costs of US$0.51/lb. As in the previous
quarter, metal production failed to meet 25,000 tons per annum
rates due to a shortfall in the quantities of ore placed under
leach. The crusher / stacker problems that resulted in the
under-performance have been rectified, and the contractor
exceeded the crushing target for December.
Girilambone Copper Mine, New South Wales
ML 1280, 1383, MPLs 294 and 295
(Straits Resources Limited - 100%)
Girilambone had a steady performance during the quarter.
Copper cathode production was 410 tons at a cash cost of
US$0.51/lb (Sept 2002 quarter US$0.47/lb). Production for the
full year was 1,858 tons at a cash cost of US$0.57/lb. Due to
the operation continuing to produce positive cash flow the
decision was made during the quarter to continue operations at
Girilambone into 2003.
Sebuku Coal Mine, Indonesia
(Straits Resources Limited - 80%)
Coal Co-operation Contract
Coal production was 571,000 tons for the December 2002 quarter
and 2.1 million tons for the year. Coal sales for the December
quarter of 2002 totaled 550,000 tons and 2.0 million tons for
the year.
Drilling has identified further coal seams to the south of Tanah
Putih pit at shallow depth and these are being followed up with
further definition drilling.
Coal Resources as at 31 December 2002 for the Sebuku operation
are tabulated below. Mine planning work is underway to determine
the Recoverable Coal Reserve estimates.
MEASURED INDICATED TOTAL COAL
COAL RESOURCE COAL RESOURCE RESOURCE
In-Pit ('000 tons) 9,520 1,010 10,530
Stockpiles ('000 tons) 170 - 170
Total ('000 tons) 9,690 1,010 10,700
================================
C H I N A & H O N G K O N G
================================
ASIA GLOBAL: Court Approves Assets Sale to Asia Netcom
------------------------------------------------------
Asia Global Crossing announced Wednesday that the Asia Netcom
transaction was approved by the U.S. Bankruptcy Court for the
Southern District of New York yesterday.
Under the terms of the transaction, Asia Netcom, a new company
organized by China Netcom (Hong Kong) and including Newbridge
Capital and Softbank Asia Infrastructure Fund, will acquire
substantially all of Asia Global Crossing's operating
subsidiaries, excluding Pacific Crossing Ltd. and related
entities.
The Asia Netcom transaction is currently expected to close by
mid-March. Consummation of the transaction remains subject to
certain additional conditions.
Following the sale's completion, the company intends to submit a
plan of reorganization to the Bankruptcy Court for the purpose
of selling any remaining assets and distributing the value of
such remaining assets among its creditors.
About Asia Global Crossing
Asia Global Crossing provides city-to-city connectivity and data
communications solutions to pan-Asian and multinational
enterprises, ISPs and carriers. On November 17, 2002, Asia
Global Crossing Ltd. and its subsidiary, Asia Global Crossing
Development Company, commenced Chapter 11 cases in the United
States Bankruptcy Court for the Southern District of New York
and coordinated proceedings in the Supreme Court of Bermuda. No
recovery is expected for Asia Global Crossing shareholders.
CONTACT INFORMATION: Selene Lo
Hong Kong
+852 2121 2936
+852 9127 9038
selene.lo@asiaglobalcrossing.com
CIL HOLDINGS: Price, Turnover Movements Unexplainable
-----------------------------------------------------
CIL Holdings Limited noted the recent decrease in the share
price and increase in trading volume of the shares of the
Company and stated that the Board of Directors are not aware of
any reasons for the changes.
Save as disclosed in the announcements of the Company dated 20th
December 2002 relating to the results of the Hong Kong Scheme
Creditors Court Meeting and the Bermuda Scheme Creditors Court
Meeting dated 16th December, 2002 relating to winding-up hearing
and dated 31st December, 2002 in relation to the publication of
the results of the Company for the year ended 30th June, 2002
and dispatch of the annual report, The Company confirmed that
there are no negotiations or agreements relating to the intended
acquisitions or realizations which are discloseable under
paragraph 3 of the Listing Agreement, neither is the Board aware
of any matter discloseable under the general obligation imposed
by paragraph 2 of the Listing Agreement, which is or may be of a
price-sensitive nature.
The Troubled Company Reporter - Asia Pacific reported early this
month that the Hong Kong Court made an order to adjourn the
hearing of the Winding-Up Petition, which was filed by Star
Dragon Securities Limited, to February 10, 2003.
FAVRIT DEVELOPMENT: Winding Up Sought by Nan Fung
-------------------------------------------------
Nan Fung Finance Limited is seeking the winding up of Favrit
Development Limited. The petition was filed on January 2, 2003,
and will be heard before the High Court of Hong Kong on February
26, 2003.
Nan Fung holds its registered office at 9th Floor, Central
Building, No. 3 Pedder Street, Central, Hong Kong.
MACRO PACIFIC: Winding Up Petition Hearing Set
----------------------------------------------
The petition to wind up Macro Pacific 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
Hua Chiao Commercial 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.
PCCW LIMITED: Appoints Agent for Odd Lot Trading Arrangement
------------------------------------------------------------
In order to facilitate the trading of odd lots of New Shares as
a result of the Consolidation, PCCW Limited has appointed the
Agent to provide a `matching service' to those Shareholders who
wish to top-up or sell their holdings of odd lots of New Shares.
The Agent will provide the service to match the sale and
purchase of odd lots of New Shares during the period from
January 8, 2003 to February 14, 2003, both dates inclusive.
Holders of New Shares in odd lots who wish to take advantage of
this facility either to dispose of or top up their odd lots to a
board lot of 1,000 New Shares may directly contact the Agent on
telephone number 2867 1968 or through their brokers who should
contact the Agent on telephone number 2867 1859 or at 3rd Floor,
Hutchison House, 10 Harcourt Road, Central, Hong Kong during
such period.
Shareholders should note that the matching service is on a `best
efforts' basis only and successful matching of the sale and
purchase of odd lots of New Shares is not guaranteed and will
depend on there being adequate amounts of odd lots
of New Shares available for such matching.
Shareholders are recommended to consult their stockbroker, other
registered dealer in securities, bank manager, solicitor,
professional accountant or other professional adviser if they
are in any doubt about the matching facility described above.
STRONG FORCE: Winding Up Petition Slated for Hearing
----------------------------------------------------
The petition to wind up Strong Force Limited will be heard
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 Bank of China (Hong
Kong) Limited (the successor corporation to Hua Chiao Commercial
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.
WINKER DEVELOPMENT: Winding Up Petition Pending
-----------------------------------------------
Winker Development Holdings Limited is facing a winding up
petition, which is slated to be heard before the High Court of
Hong Kong on February 26, 2003 at 10:00 in the morning.
The petition was filed on January 2, 2003 by Sun Mun Kiu Eileen
otherwise known as Mun Keu Eileen Sun, the Executrix of the
Estate of Suen Kang Yau, deceased, of Room 503, Block R, Luk
Yeung Sun Chuen, Tsuen Wan, New Territories, Hong Kong.
YORTER ELECTRONICS: Awaits Petition to Wind Up
----------------------------------------------
The petition to wind up Yorter Electronics (H.K.) Limited is 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 9, 2002 by
Bank of China (Hong Kong) Limited (the successor corporation to
Hua Chiao Commercial 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
=================
* IBRA Launches PPAP Phase 2
----------------------------
Indonesia Bank Restructuring Agency officially launched the
Property Asset Sales Program 2 (PPAP 2) on January 29, 2003.
PPAP 2 offers 1,898 property units with total floor price of
about Rp1.98 trillion.
PPAP 2 is intended to fulfill IBRA's contribution target in
fiscal year 2003, revitalize the secondary market property
sector, and reduce maintenance and security expenses of the
property assets.
The types of assets on offer in PPAP 2 include land plots,
houses, villas, shop houses, stores, office space, hotels,
buildings, warehouses, apartments and factories located
throughout Indonesia. All assets are offered on an 'as is' basis
in free and clear conditions, which mean they are uninhabited
and unencumbered.
For the first time, through the PPAP 2, IBRA also offer
investment assets, namely property assets designated for
commercial activities, usually in strategic locations, of large
scales and with relatively little supply. As many as 26 of 1,898
assets on offer are investment assets with total value about
Rp1.29 trillion.
Unlike the PPAP 1, in the PPAP 2 IBRA provides buyers with
opportunities to bid for 3 (three) alternative assets in demand
with only one security deposit payment. On one side, this
strategy offers bigger opportunities for buyers to win. Another
aspect is that IBRA can sell assets in a bigger number.
As in the PPAP 1, in this PPAP IBRA continues implementing FAME
(full access maximum entry) system, a computer system which
enables buyers to bid for assets in different locations from the
IBRA office nearest their domicile.
PPAP 2 is open to general public, both individuals and
institutions. However, it is closed to employees of IBRA
including their spouse and children, consultants and notaries
involved in PPAP 2 as well as the parties subject to obligation
settlements to IBRA.
Compliant to the principle of transparency, IBRA has announced
the list of all assets on offer in PPAP 2 as well as the floor
price list in national newspaper daily Kompas of the January 29,
2003 edition, IBRA website www.bppn.go.id as well as in the
announcement boards of IBRA head office, BPPN Centers in the
cities of Medan, Lampung, Bandung, Semarang, Surabaya, Denpasar
and Makassar.
IBRA creates opportunities for prospective buyers to check the
conditions of the assets in demand at the Open House session
from today to 14 March 2003. Afterwards, prospective buyers can
apply for registration in the nearest IBRA office pursuant to
the prevailing sales procedures. In turn, the buyers can submit
their bids for assets in demand on 17 March 2003.
Buyers are obliged to submit their bids at the minimum value of
the floor price specified by IBRA. Any bid lower than the floor
price will not be eligible for further process and the paid-up
security deposit will be held by IBRA. The announcement of the
winners is scheduled for 24 March 2003.
=========
J A P A N
=========
FUJITSU LIMITED: Signs MoU With AU Optronics
--------------------------------------------
Fujitsu Limited and Fujitsu Display Technologies Corporation
Wednesday announced they have signed a memorandum of
understanding to undertake a wide-ranging collaboration in the
field of liquid crystal displays (LCDs) with AU Optronics
Corporation of Taiwan. As part of the collaboration, AU
Optronics will take a 20 percent equity share in Fujitsu Display
Technologies, currently a wholly owned subsidiary that develops,
manufactures and markets LCDs, with the remaining 80 percent to
be held by Fujitsu Limited.
The collaboration seeks to reap the benefits of combining
Fujitsu Display Technologies' accumulated expertise in cutting-
edge LCD technology and design with AU Optronics' prowess in
manufacturing. In addition to broad-based technological
collaboration, extending from production technology to product
design, the two companies will make effective use of their
combined manufacturing capabilities to generate cost
efficiencies and expand their business. The companies are
currently discussing details of the collaboration and expect to
conclude a definitive agreement in March.
The collaboration with AU Optronics, the third-largest thin film
transistor LCD manufacturer in the world, is also expected to
accelerate the diffusion of Fujitsu's advanced MVA (*1)
technology and its acceptance as an industry standard.
Going forward, as an independently operated Fujitsu group
Company specializing in LCDs, Fujitsu Display Technologies will
leverage its expertise in advanced display technologies and
design to further develop its solutions business, as well as
strengthen its capabilities as a major supplier of LCDs both
inside and outside the Fujitsu Group.
*1. MVA: Multi-domain Vertical Alignment
A Fujitsu-developed technology achieves wide-angle view, high
contrast, quick display responsiveness, and superior image
quality. Uses a rubbing-free liquid-crystal infusion technique
for higher reliability and higher productivity in manufacturing.
About Fujitsu Display Technologies Corporation
Fujitsu Display Technologies Corporation, a wholly owned
subsidiary of Fujitsu Limited, develops, manufactures and
markets LCD panels. Headquartered in Kawasaki, the Company was
established in June 2002 as part of a reorganization of
Fujitsu's LCD business.
AU Optronics Corp. http://www.auo.com,headquartered at Hsinchu,
Science-Based Industrial Park, Taiwan, is a leading manufacturer
of TFT-LCD modules both in Taiwan and in the world. The Company
offers a broad range of TFT-LCD products and related services to
OEM manufacturers and brand companies.
In September 2001, AU Optronics was formed through the merger of
Acer Display Technologies Inc. and Unipac Optoelectronics Corp.
Currently AUO operates three 3.5-generation and one fourth-
generation TFT- LCD fab. A fifth-generation TFT-LCD fab,
currently under equipment installation, is expected to begin
commercial production in the second quarter of 2003. AUO also
operates four module assembly facilities, and one R&D fab
specializing in low temperature poly silicon TFT and organic
LED.
In addition to manufacturing and assembly operations in Taiwan,
AUO has global operations in China, Japan, and the United
States. The Company markets its TFT-LCDs through two business
units including Audio Video Displays Applications and
Information Displays Applications. The Company had net sales
under ROC GAAP of NT$37.6 billion (US$1.1 billion) in 2001.
Fujitsu Limited www.fujitsu.com is a leading provider of
customer-focused IT and communications solutions for the global
marketplace. Pace-setting technologies, high-
reliability/performance computing and telecommunications
platforms, and a worldwide corps of systems and services experts
make Fujitsu uniquely positioned to unleash the infinite
possibilities of the broadband Internet to help its customers
succeed. Headquartered in Tokyo, Fujitsu Limited reported
consolidated revenues of 5 trillion yen (about US$38 billion)
for the fiscal year ended March 31, 2002. For further
information, please visit the Fujitsu Limited home page at:
Contact:
Naomi Ogawa, Robert Pomeroy
Fujitsu Limited, Public & Investor Relations
Tel: +81-3-3215-5259 (Tokyo)
Fax: +81-3-3216-9365
HITACHI LIMITED: Unveils Mid-Term Business Plan
-----------------------------------------------
Hitachi Limited intends to achieve a group-based return on
equity (ROE) of at least 8 percent this year ending March 2006,
as part of its mid-term business plan, Dow Jones said on
Thursday.
The Company will now focus on strategic business fields, such as
hard-disc drive, biotechnology and medically related operations,
Dow Jones said on Thursday.
The electronics maker will also withdraw from unprofitable
operations accounting for about 20 percent of its group revenue
within one or two years, according to Hitachi President Etsuhiko
Shoyama.
Based on its current earnings estimate, Hitachi's group ROE will
come to about 2-3 percent in the current fiscal year through
March. Last year its group ROE was minus 18.7 percent, due to
heavy losses amid a severe downturn in the global electronics
market.
KANKO NIPPON: Golf Course Applies for Rehab
-------------------------------------------
Kanko Nippon Co. Limited, which has total liabilities of 24
billion yen against a capital of 80 million yen, recently
applied for civil rehabilitation proceedings, according to Tokyo
Shoko Research. The golf course is located at Chuo-ku, Tokyo,
Japan.
KINKI NIPPON: R&I Assigns BBB+
------------------------------
Rating and Investment Information, Inc. (R&I) has assigned a
long-term debt rating of BBB+ to Kinko Nippon Railway Co.
Limited.
RATIONALE:
The earning potential of Kinki Nippon Railway Co., Ltd.'s
leisure business and other peripheral operations is poor, and it
is also difficult to envision an upturn in the operating
environment in these spheres. Kintetsu's rating therefore
strongly reflects operational risks associated with these
peripheral operations. Only a handful of the properties in its
hotel operations, which consist of a chain developed as the
Miyako Hotels & Resorts, are in the black, and its Shima Spain
Village is also struggling. Furthermore, the scale of assets of
Kintetsu's overall real estate operations, including the former
Kintetsu Real Estate Co., Ltd., became bloated due to an upswing
in unprofitable properties.
Kintetsu consequently reappraised its land holdings at the end
of March 2002 and is employing accounting procedures for
offsetting latent losses on right-of-way land.
As part of a new plan to improve the Kintetsu Group's
management, the Company is currently proceeding to reduce the
level of its labor costs, withdraw from unprofitable spheres of
business, and streamline the scale of its assets by reining in
investment. When population projections for areas along its
tracks are taken into consideration, this plan can be evaluated
positively from the standpoint of determining the Company's
rating. Since an upturn in the operating environment is
difficult to envision, though, some aspects remain slightly
obscure. Achieving the plan will necessitate improving the
earning potential of leisure operations, including hotels and
Shima Spain Village, and is contingent upon smooth progress in
selling off real estate and other assets.
Meanwhile, the fact that Kintetsu's joint business endeavors
with Mitsubishi Group financial institutions are increasing
probably bears watching. Tokyo-Mitsubishi Cash One Ltd.'s
consumer finance business launched operations in Kintetsu's
railway stations this year. Kintetsu has also entered into
collaborative research concerning a smart card with the Bank of
Tokyo-Mitsubishi Ltd. Additionally, last July it established
Global Alliance Realty Co., Ltd., a J-REIT management firm, with
Meiji Life Insurance, Co., the Mitsubishi Trust and Banking
Corp., and other partners. In this way, ties between Kintetsu
and Mitsubishi Group financial institutions have recently been
growing closer.
MISAWA HOMES: Reorganizes Group Structure
-----------------------------------------
Misawa Homes Co. will reorganize its group structure under a new
holding firm to be launched in August, as part of its
restructuring scheme, Japan Times reports.
Under the plan, the ailing house builder will fully privatize
three sales subsidiaries operating in Tokyo and other major
cities, and merge two building material producers within the
group. The move will slash costs by 18 billion yen in the 2005
business year by winnowing out overlapping personnel and
expenses.
The Company will also reduce staff levels at the parent firm to
750 by the end of March 2006 from 1,288 at the end of March
2002. It will also halve the number of board directors to eight.
The group workforce will be reduced to roughly 8,000 by the end
of March 2006 from 9,804 as of last March.
Despite a 35 billion yen debt waiver in March from its main
creditor UFJ Bank, the firm is still struggling under heavy
debts.
NIPPON STEEL: President Akira Chihaya Quits Post
------------------------------------------------
Akira Chihaya will step down as President of Nippon Steel
Corporation and be replaced by Vice President Akio Mimura
effective April 1, 2003, Dow Jones reports.
Current Chairman Takashi Imai will become honorary Chairman and
advisor, but he will resign as a member of the board after the
next general shareholders' meeting in late June.
The changes are part of a scheduled reshuffle.
Nippon Steel Corporation posted a consolidated net loss of 5.07
billion yen in the first half of 2002, versus a profit of 520
million yen a year earlier, the Troubled Company Reporter- Asia
reports.
Nippon Steel booked a net extraordinary loss of 11.66 billion
yen including 3.69 billion yen, on appraisal of invested
securities holdings, and 3.8 billion yen for additional
retirement allowances.
For more information, go to http://www.nsc.co.jp/
NEC CORPORATION: Chip Unit Initial Share Sale May Raise $846M
-------------------------------------------------------------
NEC Corporation and its unit NEC Electronics Corporation plan to
raise as much as 100 billion yen ($846 million) from the initial
sale of shares in the subsidiary by March, as part of its debt
reduction plan, Bloomberg said on Thursday.
The parent firm posted a record loss of 312 billion yen in the
year to March.
``NEC must be in a hurry to raise money because it's trying to
sell shares in the unit now,'' said Muneyuki Tsuji, who manages
15 billion yen at Japan Investment Trust Management Co. ``The
financial situation must be in a bad shape.''
Daiwa Securities SMBC Co. and Morgan Stanley are arranging the
sale of NEC Electronics shares. The sale may coincide with the
public offering of Taiyo Mutual Life Insurance Co., Japan's
eighth- largest life insurer. It plans to start marketing shares
next month and trade in April.
As of November 2002, NEC Electronics had 110 billion yen in
debt. In July, NEC forecast the chipmaker, which employs 24,000
and doesn't disclose earnings, to have about 700 billion yen in
sales for the year ending March.
NEC Electronics announced earlier that 39 financial firms would
provide the unit with as much as 110 billion yen in loans so it
can invest in new factories and equipment.
NEC CORP.: Plans Broadcasting Systems Manufacturing Venture
-----------------------------------------------------------
NEC Corporation (NEC) announced its intention to outsource the
manufacturing functions at NEC Gotemba, Ltd. (NEC Gotemba), a
manufacturing affiliate of broadcasting systems and video
equipment, to an Electronics Manufacturing Service (EMS)
provider. NEC is currently negotiating with several EMS
companies and is expected to reach a definitive agreement by
February this year with an anticipated closing by September
2003.
The main points of the transfer are as follows.
-The EMS Company will create a new Company and the manufacturing
assets will be transferred to the new Company. This new Company
will include approximately 250 people that are currently
employed at the facility.
-NEC expects to enter into a multi-year agreement with the EMS
Company to supply manufacturing services to NEC for the products
transferred under the agreement.
NEC is the top supplier of total business solutions for domestic
broadcasting stations, with a history of supplying broadcasting
systems for 78 years to 103 countries around the world. NEC
holds a strong position in the domestic digital broadcasting
systems market and its business is set to further expand not
only in Japan but also in overseas market. Through an alliance
with an EMS Company, NEC intends to improve the price
competitiveness of its products, production lead-time and
flexibility to better handle fluctuation of market demands, by
leveraging NEC's leading-edge production techniques and
technological capabilities with the EMS Company's global
manufacturing capabilities, purchasing power and product
introduction expertise. The alliance will enable the EMS Company
to obtain an extensive base for broadcasting infrastructure
systems backed by NEC's technologies and prominent human
resources.
Outline of NEC Gotemba
1. Name of the Company: NEC Gotemba, Ltd.
2. Location: Gotemba City, Shizuoka Prefecture, Japan
3. Established: April 1st, 1992
4. President: Kunio Nagashima
5. Number of Employees: approx. 250
6. Annual Sales: 18.7 billion Yen (Fiscal year ended March 31,
2002)
7. Operations: Manufacturing of broadcasting systems and video
equipment
NEC Corporation www.nec.com is one of the world's leading
providers of Internet, broadband network and enterprise business
solutions dedicated to meeting the specialized needs of its
diverse and global base of customers. Ranked as one of the
world's top patent-producing companies, NEC delivers tailored
solutions in the key fields of computer, networking and electron
devices, through its three market-focused, in-house companies:
NEC Solutions, NEC Networks and NEC Electron Devices. NEC
Corporation employs more than 140,000 people worldwide and had
net sales of approximately $39 billion in the fiscal year ended
March 2002. For further information, please visit the NEC
Corporation home page at: www.nec.com
Contact:
Akiko Shikimori
Corporate Communication Division
NEC Corporation
TEL:81-3-3798-6511
a-shikimori@ay.jp.nec.com
NIIGATA ENG'NG: IHI, DBJ Set Up New Firm to Acquire Operations
--------------------------------------------------------------
Ishikawajima-Harima Heavy Industries Co. (IHI) and the
governmental Development Bank of Japan (DBJ) will jointly create
two firms to acquire failed Niigata Engineering Co.'s mainstay
operations, Japan Times reports.
The new firms, Niigata Power Systems Co. and Niigata Transys
Co., will be formed on February 3 and each owned 70 percent by
IHI and 30 percent by the DBJ, according to the heavy machinery
maker.
Niigata Power Systems will take over the firm's engine and
turbine business, while Niigata Transys will take over its
railroad interests.
Niigata Engineering filed for court protection from creditors in
November 2001 with liabilities of more than 220 billion yen.
NISSHO IWAI: Expects Losses This Year
-------------------------------------
Nissho Iwai Corporation and Nichimen Corporation are forecasting
losses this year as they accelerate a financial clean up before
their business consolidation in April, according to Dow Jones.
Nissho Iwai revised its group net outlook for the year to March
to a loss of 75.5 billion yen from a profit of 6.5 billion yen.
Nichimen lowered its net outlook to a loss of 41 billion yen
from a profit of 7 billion yen.
Debt-laden Japanese trading house, Nissho Iwai, has agreed to
sell part of its stake in start-up IT business, ITX, for JPY9.32
billion, the Troubled Company Reporter-Asia Pacific said last
week.
The company, which is set to merge in April with Nichimen,
another mid-sized debt-laden trading house, says it has not yet
decided what to do with the money, but it may use it to pay its
main creditors -- UFJ, Mizuho and Tokyo Mitsubishi banks.
Nissho and Nichimen plan to cut 4,000 jobs and 130 subsidiaries
over three years to help cut costs by a cumulative JPY80
billion. The paper said even with the JPY200 billion capital
injection the two companies seek after merging in April, the new
entity would have to continue to cut total debt, which stands at
about JPY3 trillion.
TOKYO HEISEI: Real Estate Firm Enters Bankruptcy
------------------------------------------------
Tokyo Heisei Tatemono KK has been declared bankrupt, according
to Tokyo Shoko Research Limited. The real estate firm, located
at Shinjuku-ku, Tokyo, Japan has 152 million yen in capital
against total liabilities of 12 billion yen.
TOKYU DEPARTMENT: Converts Y70B Debts to Syndicated Loan
--------------------------------------------------------
Tokyu Department Store Co. will convert 70 billion yen worth of
short-term borrowing to a syndicated loan from ten banks, as
part of its five-year business reform plan until 2005, reports
Dow Jones.
The 70 billion yen portion of the group's 90 billion yen short-
term lending will be converted into a five-year loan by lenders
including its two main banks, Chuo Mitsui Trust & Banking of
Mitsui Trust Holdings Inc. and Bank of Tokyo-Mitsubishi of
Mitsubishi Tokyo Financial Group Inc.
The Company currently has interest-bearing debts of about 100
billion yen at the parent Company level and 140 billion yen on a
consolidated basis.
Among the 10 banks that have agreed to the deal are Mitsubishi
Tokyo Financial Group Inc., Chuo Mitsui Trust & Banking Co. of
Mitsui Trust Holdings Inc., Sumitomo Mitsui Financial Group
Inc., Sumitomo Trust & Banking Co. and Mizuho Corporate Bank
Ltd. of Mizuho Holdings Inc.
TOSHIBA CORPORATION: 3Q02 Net Loss Narrows to Y6.9B
----------------------------------------------------
Toshiba Corporation's net loss narrowed to 6.9 billion yen
(US$58.5 million) for the third quarter, versus a loss of 84.9
billion yen a year earlier, Channel News Asia reports.
The loss decline is "partially explained by a 65 billion yen
restructuring charge posted in the third quarter of last year,"
the report said.
Its pre-tax loss contracted to 16.8 billion yen from 143.6
billion yen a year ago.
The Troubled Company Reporter-Asia Pacific reported that Toshiba
in the three months to December 31 had a loss of 84.9 billion
yen ($636 million) versus a net income of Y11.1 billion in the
year- earlier period. Consolidated sales fell 14 percent to Y1.2
trillion from Y1.39 trillion.
For a copy of the consolidated financial statements of Toshiba
Corporation for the third quarter and the nine months ending
December 31, 2002, visit
http://bankrupt.com/misc/tcrap_toshiba0130.pdf
=========
K O R E A
=========
CHOHUNG BANK: Posts FY02 Y586B Net Loss
---------------------------------------
Chohung Bank reported a net loss of 586 billion won in 200,
versus a profit of 522.5 billion yen a year earlier, due to
increased provisioning against its exposure to corporate
clients, according to AFX Asia.
The bank also posted a 134.7 billion won operating loss,
compared to a profit of 723.1 billion won recorded a year
earlier.
HYNIX SEMICONDUCTOR: Q402 Net Loss Narrows to W917.1B
-----------------------------------------------------
Hynix Semiconductor Inc. posted a net loss of 917.1 billion won
in the three months to December, versus a loss of 1.37 trillion
won a year earlier, on the back of lower interest costs after a
creditor bailout package.
In the fourth quarter, operating loss narrowed to 347.6 billion
won from 564.3 billion a year earlier, while sales rose to 746.4
billion from 505.5 billion.
The chipmaker continued to be in the red due to weak chip prices
but losses decreased thanks to reduced financial costs and lower
inventory write-offs and corporate restructuring costs," it said
in a statement.
For the entire year of 2002, it posted a net loss of 1.95
trillion won and an operating loss of 940.3 billion won,
compared with a net loss of 5.07 trillion and an operating loss
of 1.29 trillion a year ago.
The Company's Eugene plant in the United States, posted an
operating loss of 730 billion won last year on sales of 3.18
trillion.
HYNIX SEMICONDUCTOR: Signs MoU With KEB
---------------------------------------
Hynix Semiconductor Inc. has signed a memorandum of
understanding (MoU) with main creditor Korea Exchange Bank to
comply with conditions outlined in a restructuring plan approved
last December, Dow Jones said on Thursday.
The restructuring plan, which is aimed at getting Hynix back on
its feet by 2006, involves selling its non-core assets.
The Company recently sold its thin-film transistor liquid
crystal display, or TFT-LCD, unit to China's BOE Technology
Group Co. for about $380 million, with partial financing from
some creditor banks.
Hynix will hold a shareholders' meeting on February 25 to vote
on a proposal to combine every 21 shares in Hynix into one
share.
HYUNDAI HEAVY: Allegedly Falsified Year 2000 Financial Results
--------------------------------------------------------------
Hyundai Heavy Industries Co. may have falsified documents in
2000 to show it posted a profit when it had a loss, Chosun Ilbo
and Bloomberg said on Thursday.
The Financial Supervisory Service (FSS) has almost completed an
examination of the Company's books and will decide soon whether
to penalize the Company.
The shipbuilder initially reported 2000 profit of 15.1 billion
won ($13 million), largely on increased income from stakes in
units and affiliates. In 2001, the Company readjusted the
previous year's books to show a 161.5 billion won loss, without
reflecting the change on 2001 financial statements.
HYUNDAI MERCHANT: Audit Board Releases Probe Findings
-----------------------------------------------------
The Board of Audit and Inspection said it will announce on
January 29, 2003 at 4.00 pm, the results of its investigation
into Hyundai Merchant Marine Co. over the alleged transfer of
400 billion won to North Korea ahead of the historical summit
meeting between the two Koreas in June, 2000.
The local media has been reporting that Hyundai Merchant Marine,
which led the North Korean tour businesses, allegedly handed
over the money just a week before the June-15, 2000 summit after
borrowing the funds from state-owned Korea Development Bank.
===============
M A L A Y S I A
===============
ACTACORP HOLDINGS: Provisional Liquidator Appointed to VPSSB
------------------------------------------------------------
The Board of Actacorp Holdings Berhad wishes to announce that
the Kuala Lumpur High Court, on 28 January 2003, made an order
for the winding-up of V-Pile Sistem Sdn Bhd, a wholly owned
subsidiary of the Company, pursuant to the provision of the
Companies Act 1965.
Under the Winding-up Order, the Official Receiver of the State
of Malaya has been appointed as Provisional Liquidator of VPSSB.
AKTIF LIFESTYLE: Furnishes Additional Writ of Summons Info
----------------------------------------------------------
Aktif Lifestyle Corporation Bhd, in reply the Query Letter by
KLSE reference ID: JL-030124-36713 on Writ of Summons Served on
Aktif Lifestyle Stores Sdn Bhd (ALS) and the Company, furnished
the additional information:
1. The interest rate is specified at 8.40% per annum (i.e. 2%
above the Bank's current base lending rate of 6.4%) on monthly
rest from 1 December 2002 until full settlement.
2. Full details of the default leading to this writ of
summons have been announced to KLSE via the Company's
announcement dated 18 December 2002 as below:
In accordance with PN1/2001, Aktif wishes to announce the
following the details of Default by Aktif and its subsidiary are
as follows:
(1) Aktif Lifestyle Stores Sdn Bhd (ALS), a wholly-owned
subsidiary of Aktif, had a RM20 million loan extended to it by
ING Insurance Berhad (Lender). This loan which expired on 16
November 2002 was secured by way of two bank guarantees of RM10
million each from OCBC Bank (Malaysia) Berhad (OCBC) and RHB
Bank Berhad ("RHB), respectively. These bank guarantees carry
the corporate guarantees of Aktif.
(2) Upon expiry of the loan, OCBC and RHB settled this sum with
the Lender under the bank guarantees.
(3) Subsequently, OCBC has demanded full repayment of the RM10
million paid to the Lender. Simultaneously OCBC has also called
on the corporate guarantee of Aktif.
(4) RHB also has demanded full repayment of RM10 million paid
under their bank guarantee.
Reason for Default
The Company is unable to meet these repayments as its operations
have not been able to generate sufficient funds for this
purpose.
Measures Taken to Address the Default
The Company is in the process of negotiation with its bankers to
restructure the facilities. At the same time, the Company is
working on a proposed scheme to regularize its financial
position as required pursuant to paragraph 5.1 of KLSE's
Practice Note No.4, by the extended deadline of 7 February 2003.
Below is the KLSE Query Letter content:
We refer to your announcement dated 23 January 2003.
In this connection, kindly furnish the Exchange with the
following additional information for public release:
(1) The interest rate on the amount claimed for.
(2) The financial and operational impact of the Writ of Summons
on the group.
(3) The expected losses, if any arising from the Writ of
Summons.
(4) Details of the default or circumstances leading to the
filing of the Writ of Summons.
Kindly furnish the Exchange with your reply within two (2)
market days from the date hereof.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE
Tan Yew Eng
Senior Manager, Listing Operations
TYE/WSW/JT
Copy to: Securities Commission (via fax)
AOKAM PERDANA: BNM Approves RCSLS Proposed Issuance
---------------------------------------------------
On behalf of the Board of Directors of Aokam Perdana Berhad,
Southern Investment Bank Berhad (SIBB) announced that Bank
Negara Malaysia (BNM) had, via its letter dated 28 January 2003,
approved the proposed issuance of redeemable convertible secured
loan stocks (RCSLS) to the non-resident companies in relation to
a proposed debt settlement (Proposed Debt Restructuring) to be
undertaken pursuant to the Proposals. Go to
http://www.bankrupt.com/misc/TCRAP_Aokam0131.giffor details.
For the terms of the RCSLS, go to
http://www.bankrupt.com/misc/TCRAP_Aokamdtails0131.gif.
The approval of BNM is subject to the following conditions:
(i) Aokam is required to obtain and fulfill with the conditions
imposed by relevant authorities in Malaysia; and
(ii) The redemption of the RCSLS is to be made in the
denomination of Ringgit Malaysia and is to be credited into the
External Account of the respective holders of the RCSLS.
DENKO INDUSTRIAL: Approved PCDRS Implementation Underway
--------------------------------------------------------
Denko Industrial Corporation Berhad refers to the announcements
dated 18 December 2002, 30 December 2002 and 14 January 2003
wherein the Company announced that it had obtained the approvals
from the Foreign Investment Committee, the Securities Commission
(SC) and the Ministry of International Trade and Industry
Malaysia in relation to the Proposed Corporate and Debt
Restructuring Scheme (PCDRS).
In addition, on 22 January 2003, Public Merchant Bank Berhad, on
behalf of Denko, submitted an acceptance of the approval and an
appeal to the SC and is currently awaiting the SC's approval on
the said appeal. Denko is in the process of implementing the
approved PCDRS.
JASATERA BHD: FIC OKs Revised Proposed Recapitalization Exercise
----------------------------------------------------------------
Reference is made to paragraph 4.1(b) of PN 4/2001 whereby the
listed issuer is required to announce the status of it's plan to
regularize it's financial position on a monthly basis until
further notice from the KLSE.
Jasatera Berhad had already obtained the approvals from the
Securities Commission (save for the Proposed Exemption pursuant
to PN 2.9.3 of the Malaysian Code on Takeovers & Mergers
(Code)), the Ministry of International Trade and Industry (MITI)
and the Foreign Investment Committee (FIC) for the Revised
Proposed Recapitalization Exercise.
The application dated 1 November 2002 submitted to the
Securities Commission for the proposed exemption pursuant to PN
2.9.1 of the Code sought by Dato' Koo Yuen Kim, Dr. Koo Woon Kee
and parties acting in concert with them from an obligation to
extend a general mandatory offer for the remaining voting shares
in Jasatera not already owned by them is still pending approval.
HAP SENG: Disposes of Entire EAFL Shares
----------------------------------------
Pursuant to paragraph 9.19 (24) of the Kuala Lumpur Stock
Exchange Listing Requirements, the Board of Directors of Hap
Seng Consolidated Berhad announced that it has on Wednesday
disposed of the entire shareholdings in it's wholly owned
subsidiary, Euro-Asia Food Limited (EAFL) for the total cash
consideration of Malaysian Ringgit One Thousand only
(RM1,000.00).
EAFL is a private limited company incorporated in Hong Kong in
March 1995. It has an authorized capital of HKD10,000 comprising
10,000 ordinary shares of HKD1.00 each of which 2 ordinary
shares of HKD1.00 each have been issued and fully paid-up.
None of the directors or persons connected to the directors of
the Company has any interest, direct or indirect in the
Disposal. To the best of the knowledge of the directors, none of
the major shareholders or persons connected to the major
shareholders of the Company has any interest, direct or
indirect, in the said Disposal.
KIARA EMAS: Submits Monitoring Accountant Appointment Waiver
------------------------------------------------------------
On 17 January 2003 Kiara Emas Asia Industries Berhad announced
the approval of the Court to convene a Shareholders' Meeting of
Kiara Emas, for the purpose of considering and, if thought fit,
approving the Proposed Shareholders' Scheme. The Company is now
proceeding to obtain the approvals of the relevant authorities
for the Explanatory Statements to be issued to the shareholders
and Scheme Creditors for their respective meetings.
Following the audit qualification on the latest audited
consolidated accounts for the period ended 30 June 2002 and upon
consultation with the Kuala Lumpur Stock Exchange, the Company
has triggered an obligation to appoint an independent accounting
firm as a monitoring accountant pursuant to paragraph 6.0 of
Practice Note No.4/2001 of the Exchange. The Company has decided
to submit an application to the Exchange to waive the aforesaid
obligation as soon as practicable.
KRETAM HOLDINGS: Writ of Summons Hearing Scheduled in May
---------------------------------------------------------
The Board of Directors of Kretam Holdings Berhad wishes to
announce that on 29 January 2003, the Company was served a Writ
of Summons by Pembinaan LEC Sdn Bhd (LEC), a creditor of Jeffa
Construction Sdn Bhd (JCSB) which is a 51%-owned subsidiary of
KHB. LEC is claiming a sum of RM3,135,113.66 together with
interest and cost from KHB. The hearing of the Writ of Summons
is scheduled on 9 May 2003 at the High Court of Sabah and
Sarawak at Sandakan.
KHB granted corporate guarantees to LEC in respect of all monies
due and payable by JCSB to LEC. LEC through its solicitors
served a letter of demand dated 30 July 2002 on KHB demanding
that KHB settle the outstanding sum of RM3,135,113.66.
LEC entered into a Deed of Assignment of Debts dated 5 June 2002
(Deed) with JCSB and Southcon Corporation (Malaysia) Sdn Bhd
(SCM). This was pursuant to a Joint Venture Agreement (JVA) on 5
June 2002 between SCM and JCSB to establish a joint venture
company for the purpose of continuing and completing the
development of a project known as Pandan Place Commercial Center
in Johor for Majlis Bandaraya Johor Bahru. LEC had also entered
into a Settlement Agreement dated 5 June 2002 (Settlement
Agreement) with SCM.
The Deed provides:
(a) In consideration of the release by LEC of JCSB's debts to
the extent of the sum of RM3,930,786.82 (JCSB's Debt), JCSB
hereby assigns to LEC the sum of RM3,930,786.82 (SCM's Debt) out
of the SCM's joint venture undertaking under the JVA;
(b) In consideration of JCSB's assignment to LEC of SCM's
Debts, LEC hereby releases JCSB from JCSB's Debt;
(c) In consideration of the discharge by JCSB of SCM's debt,
SCM hereby agrees to settle JCSB's Debt with LEC at such time
and manner as may be mutually agreed by SCM and LEC;
(d) In consideration of SCM agreeing to settle JCSB's Debt,
JCSB hereby discharges SCM from the performance of the joint
venture undertaking under the JVA to the extent of SCM's
Debt/JCSB's Debt; and
(e) By reason of SCM's undertaking under the JVA, SCM enters
into the Deed and agrees to settle JCSB's Debt. In the event
that the JVA is terminated for any reason whatsoever, the Deed
shall automatically become null and void and of no further
effect.
Pursuant to the Settlement Agreement, SCM agreed to assume and
settle JCSB's Debt to LEC.
Pursuant to the joint venture, SCM had on 8 August 2002 given an
undertaking to JCSB and KHB as the Corporate Guarantor to settle
the said debt of RM3,930,786.82 to LEC if the Deed and the
Settlement Agreement were declared invalid by the courts and
that JCSB ought to be wound up if the said debt was not fully
satisfied.
An originating summons in the High Court of Malaya at Johor
Bahru was served on SCM and JCSB in early September 2002 by LEC.
LEC is currently seeking a declaration by the courts that the
Deed and Settlement Agreement are invalid and void. The hearing
of the originating summons at the High Court of Malaya at Johor
Bahru has been adjourned to 21 March 2003.
KRETAM HOLDINGS: Obtains Capital Reduction Court Order
------------------------------------------------------
On behalf of the Board of Directors of Kretam Holdings Berhad,
Alliance Merchant Bank Berhad wishes to announce that KHB had on
28 January 2003 obtained the court order from the High Court in
Sabah and Sarawak at Sandakan, which sanctions the reduction of
the existing issued and paid-up share capital of KHB of
RM105,253,500 comprising 105,253,500 ordinary shares of RM1.00
each to RM52,626,750 comprising 105,253,500 ordinary shares of
RM0.50 each and thereafter, consolidation of the 105,253,500
ordinary shares of RM0.50 each in such manner that every two (2)
ordinary shares of RM0.50 each shall constitute one (1) ordinary
share of RM1.00 each, upon which the sum of RM1.00 shall be
credited as having been fully paid-up.
The court order from the High Court in Sabah and Sarawak at
Sandakan had also been obtained on the same date for the
reduction in the share premium account of KHB by an aggregate of
RM81,955,410.
MALAYSIAN PLANTATIONS: Proposes CP/MTN Program to Finance Debt
--------------------------------------------------------------
Malaysian Plantations Berhad proposes to undertake a fund
raising exercise which involves the issuance of up to RM150.0
Million Underwritten Commercial Paper (CP) / Medium Term Notes
(MTN). The notes under the CP will be fully underwritten while
the notes under the MTN will be privately placed on a best
effort basis.
The proceeds from the CP/MTN Programmed will be utilized to
refinance the Company's existing borrowings and for standby
funding requirements of the Company and its subsidiaries.
A submission in respect of the CP/MTN Programmed will be made to
the Securities Commission in due course.
Accordingly, the earlier proposal of the Company to issue
RM180,000,000 nominal value 5-year 3% redeemable bonds as
announced on 20 December 2001 is cancelled.
OMEGA HOLDINGS: Inks Proposed Restructuring Scheme Agreements
-------------------------------------------------------------
Further to the announcement dated 31 December 2002 on the
Proposed Restructuring Scheme of Omega, Affin Merchant Bank
Berhad on behalf of the Board of Directors of Omega Holdings
Berhad, announced that Omega, Newco, Milan Auto (M) Sdn Bhd (MA)
and Milan Auto Corporation (M) Sdn Bhd (MAC) on 28 January 2003
entered into further agreements as part of the Proposed
Restructuring Scheme, which refers to:
(i) Proposed Acquisition of Omega Holdings Berhad by
Newco;
(ii) Proposed Scheme of Arrangement;
(iii) Proposed Transfer of Business;
(iv) Proposed Acquisition of MAC), a wholly-owned
subsidiary of MA by Newco;
(v) Proposed Waiver from the Mandatory Take-Over Offer
Requirement (MTO);
(vi) Proposed Special Issue of Shares;
(vii) Proposed Offer For Sale of Settlement Shares By
Creditors;
(viii) Proposed Offer For Sale of Shares by MA;
(x) Proposed Listing Transfer; and
(xi) Proposed Disposal of Omega Group.
THE SALE AND PURCHASE OF SHARES AGREEMENT IN MA
Particulars
MA, had on 28 January 2003, entered into an agreement with
Premium Transaction Sdn Bhd (Newco), for the Sale and Purchase
(SSA) of the entire issued and paid up share capital of MAC to
Newco for a total purchase consideration of RM120 million to be
satisfied by way of issue and 120 million new ordinary shares of
its par value of RM1.00 per share.
Background Information on Newco
Newco was incorporated in Malaysia under the Companies Act, 1965
as a private limited company on 14 September 2002. The present
authorized share capital of Newco is RM100,000 comprising
100,000 ordinary shares of RM1.00 each of which RM2.00 ordinary
shares have been issued and paid up.
Below are the shareholders of Newco as at 31 December 2002:
Shareholders Direct
No. of Shares %
Ho Yue Cay 1 50
Lew Chu Wee 1 50
2 100
The directors of Newco are Ho Yue Cay and Lew Chu Wee and the
company is currently dormant.
Salient terms of the Share Sale Agreement (SSA)
The salient terms of the SSA are as follows:
(a) The total purchase consideration of the sale shall be
RM120 million to be satisfied by the issue and allotment of 120
million new ordinary shares of its par value of RM1.00 per
share;
(b) The SSA is subject to the following:
ú The Proposed Restructuring Scheme is approved by the
Omega creditors, Omega shareholders and the sanction of the High
Court of Malaya and approvals of all other appropriate
authorities of the Proposed Restructuring Scheme;
ú Newco will have to obtain the approval of the Foreign
Investment Committee (FIC), the Securities Commission (SC), the
Ministry of International Trade and Industry (MITI) and other
relevant authorities for the purchase of MAC shares and
allotment of the Newco Shares;
ú Newco will have to obtain the approval of SC for the
issuance of the Newco Shares at RM1.00 per share;
ú MA will have to obtain a waiver from the SC from the
requirement to make a general offer to the other shares of
Newco;
ú Newco will have to obtain the approval of its
shareholders at the extraordinary general meeting (EGM) of the
shareholders of the Newco for the purchase of the MAC shares;
ú MA will have to obtain the approval of its shareholders
at the extraordinary general meeting of the shareholders of the
MA for the sale of the MAC shares;
ú Newco will have to obtain the approval of KLSE for the
quotation and listing of the Newco Shares at RM1.00 per share to
be issued to MA; and
ú The SSA is conditional on the completion of the Business
Transfer Agreement, Restructuring Scheme Agreement and Deed of
Agreement.
THE VEHICLE SUPPLY AGREEMENT (VSA)
Particulars
MA, had on the same day, 28 January 2003, entered into a
separate agreement with MAC, for the supply to MAC of Alfa Romeo
Vehicles and parts, which are manufactured by and for Fiat Auto
S.p.A. (formerly Alfa Lancia S.p.A.)
Salient terms of the VSA
The salient terms of the VSA are as follows:
ú MAC will buy from MA, Alfa Romeo vehicles and parts which
are manufactured by Fiat Auto S.p.A. (formerly Alfa Lancia
S.p.A.);
ú MAC will be given the best purchase price for the Alfa
Romeo vehicles or parts; and
ú The Alfa Romeo vehicles shall be sold to MAC at the agreed
price list provided by Fiat Auto S.p.A. (formerly Alfa Lancia
S.p.A.) with MA entitled to an additional 1% of the agreed price
of the Alfa Romeo vehicles. For clarification, the agreed price
list for the vehicles includes the customs tax payable on the
importation of the vehicles and any amount of tax or other
government charges or duty in respect of the vehicles and the
cost to the MA of conforming with any other legal requirement
imposed plus cost, insurance and freight ("CIF"), transportation
and handling charges.
THE DEED OF AGREEMENT
Particulars
Omega and Newco, had also on 28 January 2003, entered into Deed
of Agreement (DA), for the exchange of shares in Omega for new
shares in the Newco on the basis of one (1) new ordinary share
of RM1.00 only each in the Newco for every one hundred (100)
ordinary shares of RM1.00 only each held in Omega (Share
Exchange Arrangement).
The exchange of shares will only take place upon the successful
completion of Omega Restructuring Scheme.
Salient terms of the DA
ú Omega covenants and undertake to enter into the Proposed
Restructuring Scheme and to obtain all necessary approvals
required to effect the Proposed Restructuring Scheme
ú The DA is conditional on the following:
(a) That Newco's acquisition of one hundred percent (100%) of
the equity of MAC from MA is unconditional
(b) All necessary approvals from the SC, the FIC, the MITI
(if necessary), other statutory or regulatory approvals, Omega's
creditors, the High Court of Malaya, shareholders and the board
of directors of Newco and Omega.
(c) Newco shall not be required to issue more than Three
Million (3,000,000) Newco Shares to the shareholders of Omega
pursuant to the Share Exchange Arrangement under the Omega's
Proposed Restructuring Scheme
(d) The total number of Newco Shares arising from the
conversion of the Newco securities to be issued to the Company's
creditors under the Company's Restructuring Scheme shall not
exceed Twenty Five Million (25,000,000) Newco shares.
(e) The approval of the KLSE being obtained for the listing
and the quotation of all Newco's shares on the Main Board of the
KLSE.
APPLICATION TO AUTHORITIES
Omega is currently preparing the application to the authorities,
which will be submitted by the end of January 2003 as per the
announcement dated 31 December 2002.
DOCUMENTS FOR INSPECTION
The agreements are available for inspection at the Registered
Office of the Company during normal office hours from Monday to
Friday (except public holidays) for a period commencing from the
date of this announcement to the date of the EGM.
PARIT PERAK: Unit Receives Unsettled Loan-Related Summons
---------------------------------------------------------
The Special Administrators of Parit Perak Holdings Berhad
(Special Administrators Appointed) announced that a wholly owned
subsidiary of PPHB, Capital Dynasty Sdn Bhd (CDSB) has received
a sealed copy of a Summons dated 28 January 2003 filed by
Malaysia Building Society Berhad (MBSB).
The total amount of RM246,209,548.18 is claimed for the loans
granted by MBSB and the details of the amount claimed are as
follows:
a) Term Loan of RM1,490,088.97 together with the interest at
the prescribed rate of 2.5% per annum on cost of funds and 1%
per annum on the rest of months from 7 February 2003 until full
settlement;
b) Bridging Loan of RM210,073,737.15 together with the
interest at the prescribed rate of 2.5% per annum on cost of
funds and 1% per annum on the rest of months from 7 February
2003 until full settlement; and
c) Additional Bridging Loan of RM34,645,722.06 together with
the interest at the rate of 10% per annum on the additional
bridging loan and 1% per annum on the rest of months from 7
February 2003 until full settlement.
CDSB will not make any appeal to the High Court for the
abovementioned claim due to the financial constraints.
PICA (M) CORPORATION: Provides Credit Facilities Status Update
--------------------------------------------------------------
Further to the Company's announcement regarding Practice Note 4,
the Company on 17 December 2002 has through its merchant banker
CIMB, requested an extension of two months from Kuala Lumpur
Stock Exchange (KLSE) to make its requisite announcement. The
extension was approved by the KLSE on 31 December 2002.
Currently, the Company has obtained approval in principal from
majority of the creditors representing approximately 90% of the
total outstanding debts, to participate in the Scheme. The
Company shall attempt to obtain further approval from the rest
of the creditors.
The Board of Directors also provided the status of the following
credit facilities:
1. RM60 Million Guaranteed Revolving Underwriting Facility
Further to the Company's announcement on the status of the above
matter, the Court has further fixed 17 December 2003 for further
submission in relation to the Plaintiff's striking out
application. Apart from the above, the legal proceeding is still
pending in court.
2. RM5 Million Revolving Credit Facility & RM7 Million Short
Term Loan
The Company wish to inform that the Plaintiff's summary judgment
application has been postponed to 1 April 2003. Apart from the
above, the legal proceeding is still pending in court.
3. RM50 Million Term Loan Facility
The Company wish to inform that Plaintiff's summary judgment
application has been postponed to 30 January 2003. Apart from
the above, the legal proceeding is still pending in court.
4. RM4 million Revolving Credit Facility & RM7 million Overdraft
Facility
The Company wish to inform that the Plaintiff's summary judgment
application has been further fixed for hearing on 4 March 2003.
However, 4 March 2003 is a public holiday and the Company has
applied to court for another date to be fixed for the hearing.
Apart from the above, the legal proceeding is still pending in
court.
5. Approx RM3 million Credit Facility Claimed by Arab-Malaysian
Bank
The Company wishes to inform that the Company has filed in its
Statement of Defense and the Plaintiff's summary judgment
application has been further fixed for hearing on 10 March 2003.
PROMET BERHAD: Enters Restructuring Scheme MOU With MERSIK
----------------------------------------------------------
Promet Berhad, on 28 January 2003, entered into a Memorandum of
Agreement (MOA) with Dato' Mahmud Bin Ali and Mohd Shafie Bin
Mahmud on behalf of the shareholders of Mersik (M) Sdn Bhd
(MERSIK) for the purposes of undertaking a restructuring scheme
of the Company. The MOA sets out the general understanding of
the parties and to establish the framework of negotiations
towards the participation of MERSIK in a restructuring scheme of
PB which consists of the following salient indicative proposals
that is subject to further negotiation, confirmation, acceptance
and agreement:
(a) Proposed Capital Reduction and Consolidation. The
existing issued and paid-up capital of the Company be reduced by
approximately RM0.996 for every ordinary share of RM1.00 each in
PB;
(b) Newco and Proposed Share Swap. Upon completion of the
Proposed Capital Reduction and Consolidation, the resultant
share capital in the Company will be exchanged with the new
ordinary shares in a new company to be set up (Newco) on the
basis of one (1) new share in Newco of RM1.00 each for every one
(1) ordinary share (resulting from the Proposed Capital
Reduction and Consolidation) held in the Company;
(c) Proposed Debt Settlement. Newco will issue such number of
shares or other instruments or a combination thereof totaling
Ringgit Malaysia Thirty Five Million (RM35,000,000.00) only to
the creditors of the Company (the Company's Creditors) in full
satisfaction of the Company's debt as at a date to be fixed and
a debt settlement proposal which is subject to negotiations and
approvals by the Company's Creditors;
(d) Proposed Acquisition of Assets. Newco will acquire the
Assets at an estimated aggregate purchase price of Ringgit
Malaysia One Hundred Sixty Million (RM160,000,000.00) only
(which shall be subject to final confirmation and valuation) to
be satisfied by the issuance of new shares or such other
combination of instruments in Newco. The purchase consideration
will be based on the fair value as indicated by the valuation
report confirming the value of Assets and to be mutually agreed
to by MERSIK and the parties. The Assets identified for the
proposed acquisition is as follows:
(i) Kajang Plaza consisting of 10 units of 2 storey shop
houses, 24 units of 3 storey shop houses and 4 storey shop
houses with more than 12,000 sq ft built-up area, located in
Kajang town.
(ii) The total issued and paid up capital of MERSIK which
is a class `A' construction company with contracts in hand
valued at approximately RM300 million.
(iii) Development assets consisting of 350 acres of land
located at Bukit Beruntung.
(e) Waiver of Mandatory Offer. The vendors of the Assets will
seek a waiver from the Securities Commission pursuant to the
Malaysian Code on Take-Overs and Mergers, 1998, from having to
undertake a mandatory offer of the ordinary shares in Newco not
already owned by the vendors of the Assets upon completion of
the Proposed Acquisition of Assets;
(f) Proposed Disposal of the entire equity of PB. Upon
completion of the Proposed Acquisition of Assets, Newco shall
dispose the entire issued and paid up capital of the Company for
Ringgit Malaysia One (RM1.00) for liquidation purposes;
(g) Transfer of Listing Status of PB to Newco. Newco shall
apply to the Kuala Lumpur Stock Exchange (KLSE) for a transfer
of the listing status of PB on the Main Board which shall result
in the Company being delisted from the Main Board of the KLSE;
(h) Proposed Private Placement, Restricted Offer for Sale
and/or Public Issue. In conjunction with the proposals, certain
vendors of the Assets may carry out a private placement and/or
restricted offer for sale of their shares in Newco for the
purpose of meeting the public spread and bumiputera
shareholdings requirements.
Notwithstanding the above, the abovementioned proposals, in
particular the Proposed Acquisition of Assets, are subject to
variations and amendments.
A definitive restructuring agreement and the aforementioned
agreements in relation to the restructuring scheme of the
Company shall be entered into within thirty (30) days from the
date of this MOA or such extended time as may be agreed in
writing by both parties.
The Company and parties agree that immediately on the execution
of the relevant agreements (on or within thirty (30) day period
from the date of the MOA or such period as the respective party
thereto may mutually agree), a Requisite Announcement with
details of the scheme pursuant to Practice Note 4/2001 under
Paragraph 8.14 of Listing Requirements of the KLSE shall be made
to the KLSE.
SOUTHERN PLASTIC: FI Gives PDRS Conditional Approval
----------------------------------------------------
Reference is made to the announcements dated 21 November 2002,
11 December 2002, 16 December 2002 and 31 December 2002 in
relation to the Proposals, which involved a Proposed Restricted
Issue; Proposed Special Bumiputera Issue, Proposed Acquisitions,
Proposed Debt Restructuring Scheme, Proposed Exemption under the
Malaysian Code of Take-Overs and Mergers, 1998 (Code), and
Proposed Increase in the Authorized Capital.
On behalf of Southern Plastic Holdings Berhad, Commerce
International Merchant Bankers Berhad announced that one of SPHB
Group's unsecured Financial Institution Creditors (FI
Creditors), namely Aseambankers Malaysia Berhad has given its
conditional approval-in-principle for the Proposed Debt
Restructuring Scheme via its letter dated 17 January 2003. As a
result, the Company has received conditional approvals-in-
principle of 73.0% in value and 50.0% in number of the unsecured
FI Creditors.
=====================
P H I L I P P I N E S
=====================
DIGITAL TELECOMMUNICATIONS: Nearing Tie Up Deal With Globe
----------------------------------------------------------
Globe Telecom Inc. is close to an agreement with rival Digital
Telecommunications Philippines Inc. to link their mobile
networks, Bloomberg reports.
``There are no significant obstacles at this time,'' Globe
President Gerardo Ablaza said.
Digital Telecom, the nation's second-biggest fixed-wire phone
Company also known as Digitel, is seeking to enter the wireless
market, which has been grabbing traffic from landline services.
The Company earlier this month declined comment on when it will
start its wireless service.
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.
GLASGOW CREDIT: Owners Face Criminal Charges
--------------------------------------------
The Pasig Prosecutors Office has recommended the criminal
prosecution of the owners and directors of Glasgow Credit and
Collection Services Inc. for having allegedly committed large-
scale estafa, the Philippine Star said on Friday.
Pasig Prosecutor Fernando H. Dumpit signed the order.
In the order, Dumpit said: "Based on the evidence adduced, there
exists a sufficient ground to engender a well-founded belief
that crime of large-scale estafa in violation of Article 315 of
the Revised Penal Code, has been committed and respondents are
probably guilty thereof and should be held for trial."
Dumpit said all the elements of estafa by means of deceit under
Article 315, subdivision 2 (a) of the Revised Penal Code were
present.
Among these elements: the offended party was induced to part
with big money or property because of the fraudulent means; such
false pretense was executed prior to or simultaneously with the
commission of the fraud; and that as a result thereof, the
offended party suffered damage.
Among the Company's owners are Manuel Roldan Jr, Radiacion
Badias, Jenilyn Condes, Roldan Estacio, and Jonathan Condes.
The Securities and Exchange Commission (SEC) has issued Glasgow
a cease-and-desist order for offering to the public investment
contracts without prior registration with the corporate
regulator.
=================
S I N G A P O R E
=================
EXCEL MACHINE: Joint Petition Hearing Scheduled Today
-----------------------------------------------------
The Board of Directors of Excel Machine Tools Ltd announced that
the joint petition for judicial management order, which has been
adjourned, to be heard on January 31, 2003 and will be
rescheduled on February 14, 2003.
The Board will provide a monthly update regarding the Company's
financial situation and will announce immediately any material
development, which takes place between the monthly updates.
VIKAY INDUSTRIAL: Unveils Property Disposal
-------------------------------------------
Vikay Industrial Limited announced that, on 22nd January 2003,
it completed the sale (or Disposal) of its industrial property
located at 1100 Lower Delta Road Singapore (the Property) for a
cash consideration of Singapore Dollars Two Million (S$2m). The
cash consideration was arrived at on a willing buyer willing
seller basis. The Property was vacant and not tenanted. The
Property was also a non-productive which was not critical to the
operations of the Company. In view of the non-core nature of the
asset, the Company had been granted a waiver by SGX from having
to seek shareholders' approval in connection with the Disposal
under Rule 1014 of the Listing Manual.
The Property had a net book value of S$1.7 million before the
Disposal. The Disposal resulted in a positive contribution of
S$0.3 million to the profit before tax for the financial year
ended 31 December 2002 by way of a writeback on the provision
for impairment made previously. Both the Group earnings per
share and net asset value per share for FY 2002 were increased
by 0.03 cent as a result of the Disposal. Apart from the write
back that affected the previous financial year, the Disposal
would not have any material financial impact during the current
financial year.
None of the Directors or substantial shareholders of the Company
has any interest in the Disposal of the Property.
===============
T H A I L A N D
===============
BANGCHAK PETROLEUM: Appoints Surapong-rukcharoen to BOD Chair
-------------------------------------------------------------
Mr. Chokchai Atsawarangsalit of Planning and Corporate Analysis
Division Manager, Corporate Planning Office, announced that Mr.
Praphad Phodhivorakhun has resigned his directorship from the
Company's Board of Directors together with the Chairman
of the Audit Committee, with effective date from January 27,
2003 onwards.
The Bangchak Petroleum Public Company Limited (BCP) board of
directors meeting No. 2/2003 held on January 28, 2003 has
passed a resolution to inform the following:
1. The Appointment of the Company's Director
Approved the appointment of Mr. Nipon Surapong-rukcharoen to be
the Company's Director filling in the vacancy.
2. The Appointment of the Member of the Audit Committee
Approved the appointment of Mr. Nipon Surapong-rukcharoen to be
the Member of the Audit Committee.
3. The Appointment of the Chairman of the Audit Committee
Approved the appointment of Mr. Anusorn Tamajai (a present
member of the Audit Committee) to be the Chairman of the Audit
Committee filling in the vacancy.
The approvals were effective from January 28, 2003.
THAI PETROCHEMICAL: EPL Welcomes Bankruptcy Court Judges' Visit
---------------------------------------------------------------
Effective Planners Ltd. (EPL) announced Wednesday that a group
of judges assigned to Thailand's Bankruptcy Court made a pre-
arranged on-site visit to various production facilities of
Rayong-based Thai Petrochemical Industry Public Company Limited
(TPI). Effective
Planners Limited(EPL), a subsidiary of Ferrier Hodgson, as the
court sanctioned plan administrator of TPI, joined together with
senior Thai executives to host the judges on their site tour.
EPL provided the judges with a briefing on TPI Group's
operations and production processes in addition to conducting a
tour of the refinery, petrochemical plant, power generating
facility, tank farm and related port facilities.
"We welcome the judges ongoing interest in gaining a more
comprehensive, first-hand view of all facets of TPI's
operations. This will help them to reach appropriate judgments
in several matters concerning the rehabilitation of TPI. EPL
continues to receive overwhelming support from TPI's creditors
for its work in implementing TPI's court sanctioned
rehabilitation plan. We welcome the opportunity to provide
details on all of the value generating strategic and operational
changes that have been implemented at TPI. These changes have
been carefully conceptualized to ensure that the interests of
TPI's creditors, employees and customers are optimally
represented at all times," said Mr. Peter Gothard, Managing
Director at Effective Planners Limited.
"As a result of TPI's former CEO initiating in excess of 35
legal proceedings against EPL, many of which have been filed
with the Bankruptcy Court, these judges have become very
familiar with the TPI restructuring. Against that backdrop, it
is very appropriate that the judges would visit TPI's production
complex to ensure that their perspectives are based on a
complete and thorough understanding of all facets of TPI," added
Mr. Gothard.
EPL is the Plan Administrator of TPI and is a wholly-owned
subsidiary of Ferrier Hodgson, which operates throughout the
Asia Pacific region and specializes in financial restructuring,
corporate recovery, insolvency management and related services.
FH established a Bangkok office in March 1998. Since then, the
firm has developed a solid and growing presence in Bangkok with
50 specialists in diverse sectors including banking,
petrochemical, telecommunications, hotel, property and
transportation. In Thailand, FH has been involved in projects
acting for creditors (including major bank lenders) and
shareholders, with the total financial debts of transactions
exceeding US$12 billion.
CONTACT INFORMATION: Aziam Burson-Marsteller
James/Waraporn/ Satida
Tel. 0 2252 9871
* DebtTraders Real-Time Bond Pricing
------------------------------------
Issuer Coupon Maturity Bid - Ask Weekly change
----- ------ -------- --------- -------------
Asia Pulp & Paper FRN due 2001 1.5 - 2.5 0
Asia Pulp & Paper 11.75% due 2005 31.0 - 32.0 0
APP China 14.0% due 2010 29.0 - 31.0 -1
Asia Global Crossing 13.375% due 2006 11.5 - 13.5 +1
Bayan Telecom 13.5% due 2006 14.0 - 16.0 -2
Daya Guna Sumudera 10.0% due 2007 2.0 - 4.0 0
Hyundai Semiconductor 8.625% due 2007 67.0 - 70.0 0
Indah Kiat 11.875% due 2002 35.0 - 37.0 0
Indah Kiat 10.0% due 2007 25.5 - 27.5 -0.5
Paiton Energy 9.34% due 2014 78.0 - 80.0 +2
Tjiwi Kimia 10.0% due 2004 21.5 - 23.5 +0.5
Bond pricing, appearing in each Friday's edition of the
Troubled Company Reporter - Asia Pacific, is provided by
DebtTraders in New York. DebtTraders is a specialist in global
high yield securities, providing clients unparalleled services
in the identification, assessment, and sourcing of attractive
high yield debt investments. For more information on
institutional services, contact Scott Johnson at 1-212-247-5300.
To view our research and find out about private client accounts,
contact Peter Fitzpatrick at 1-212-247-3800. Real-time pricing
available at www.debttraders.com
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. 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 ***