/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/030325.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, March 25, 2003, Vol. 6, No. 59 Headlines A U S T R A L I A COLES MYER: Launch of Petrol Offer Likely This June VITA LIFE: Survival Pegged on Convertible Unsecured Notes C H I N A & H O N G K O N G AGGRESSIVE ELECTRONICS: Wind up Hearing Set Next Month BESTROUND INDUSTRIES: Winding up Hearing Next Week CHIAO TAI: Winding up Hearing Scheduled for Mid-April COSMOS WIN: Bank of China Seeks Wind up; Hearing on April 2 EASTWARD HOLDINGS: Court to Hear Winding up Petition April 9 EVER-GROWTH HANDBAG: Winding up Sought; Hearing Next Week FITZROYA FINANCE: Wai Shun Files Winding up Petition GFT FASHION: High Court to Hear Winding Pp Petition April 9 HO NAM: Taiwanese Creditor Files Winding up Petition in HK LAI SUN: Gives up 20% Stake in Development Site to Cut Debt LIWEAR GARMENT: Benefun International Lodges Wind up Suit PCCW LIMITED: Observers See Deeper Slump as Firm Delays Dividend WEL-EXPRESS DEVELOPMENT: Court Sets Hearing on Wind Up Petition WELL LOK: Petition Seeking Wind up to be Heard April 16 I N D O N E S I A BERAU COAL: Creditors Grant Firm Five-year Breathing Spell KALBE FARMA: Won't Junk Igar Jaya Stake Sale, Says Spokesman KALBE FARMA: Asks Creditors to Extend Due Date to 2010 J A P A N AOZORA BANK: Stake Sale Unlikely Before End-March FUJITSU LIMITED: Eyes HDD Tie Up With Other Firms JAPAN AIRLINES: Seeks 10% Domestic Fare Hike JAPAN AIRLINES: Introduces Special Procedures for Int'l Tickets MITSUBISHI TOKYO: Discloses Adjustment in Preferred Shares K O R E A DAEWOO SECURITIES: Woori Denies Takeover Report HYUNDAI CORPORATION: Gets Debt Repayment Deferral HYUNDAI CORP.: KSE Issues Investment Warning KOREA ELECTRIC: Pays Cash Dividend POSCO CO.: Adopts Five-day Workweek SK GLOBAL: Revises 2001 Financial Result SK GLOBAL: Foreign Banks to Sue Firm M A L A Y S I A HIAP AIK: Plan to Regularize Finances Still Lacks Approval MENTIGA CORPORATION: KLSE Raps Firm for Announcement Oversight METROPLEX BERHAD: Says Negotiations with Creditors Ongoing PLANTATION & DEVELOPMENT: Howarth Named Independent Auditor SRI HARTAMAS: Gives up Hope for Recovery, Names Liquidators * 2002 Bankruptcies Break Record Set in 1985 P H I L I P P I N E S NATIONAL POWER: Seeks Proposals for $250 Million Bond NATIONAL BANK: Annual Stockholders' Meeting on May 27 PHILIPPINE AIRLINES: Undecided on Fare Hike at This Stage PHILIPPINE LONG: Clarifies Telecom Row Settlement Report PHILIPPINE LONG: Investors' Briefing Set For Today VICTORIAS MILLING: JGS Offers to Acquire Milling Firm For P2B S I N G A P O R E CHARTERED SEMICONDUCTOR: Finances May Fluctuate Drastically CHARTERED SEMICONDUCTOR: Explains Infrastructure-related Risks SEE HUP: Dormant Unit Struck-off From SGX WEE POH: Sets EGM on April 7 WEE POH: Issues Update on Re-capitalization Plan T H A I L A N D THAI PETROCHEMICAL: Family Not Indebted to Firm, Says Prachai - - - - - - - - ================= A U S T R A L I A ================= COLES MYER: Launch of Petrol Offer Likely This June --------------------------------------------------- Coles Myer expects to finalize its own fuel discount program, calculated to lure back customers from rival Woolworths, by June this year, Asia Pulse said late last week. Citing CEO John Fletcher's pronouncement that the details of the complex fuel deal are "telephone books deep," FW Holst analyst David Spry, in an interview with Asia Pulse, agreed with the timeline. According to Mr. Spry, the snag that's holding up the deal -- purportedly with Shell -- is that the latter wants to get rid of all its canopies or sites while Coles Myer only wants the ones near its supermarkets. He said the market would take a negative view if Coles Myer took on all of Shell's 2000 petrol stations. "Shell would like to get rid of them all, there is just no money in them," Mr. Spry said. "No oil company wants to be in retail, the only reason they have them is so they can sell their own products." "I am sure Coles doesn't want to take them all - that's probably what the sticking point is," Mr. Spry told Asia Pulse. Meanwhile, he warned a petrol offer won't solve all of Coles Myer's problems: "They should be looking for some differentiation rather than following the leader." Mr. Fletcher has admitted that the planned petrol offer is in response to Woolies' four cents a liter offer for customers buying AU$30 or more worth of supermarket goods. He acknowledges that it is not the be-all and end-all to their problems. He said there also was a need to change the perception that Woolworths was cheaper. Basket checks made every week showed that the two operated close to each other, Asia Pulse said. Coles Myer estimates that it has lost two percent in sales to Woolworths by losing customers attracted to its fuel offer. It calculates it can pull in an additional AU$1 billion in revenue with petrol as a lure. VITA LIFE: Survival Pegged on Convertible Unsecured Notes --------------------------------------------------------- Chairman Vanda Gould issued this candid letter regarding the Company's condition and future plans: As you are aware, 2002 was a difficult year for Vita Life Sciences Limited. The Company has survived and we all hope that the most difficult issues to be faced are behind it. All of us at Vita are now looking forward towards securing the Company's future via the Rights Issue of Convertible Unsecured Notes. Many of the issues the Company has faced have been well documented and I do not intend to go through them again here. Rather, I would like to give you an insight into what the Company hopes will be its future. Despite the numerous difficulties encountered in 2002, all of us at Vita are optimistic about its prospects for 2003 and beyond. In 2003, the Company is budgeting to increase sales revenue to over AU$37 million with expected growth in both the Medical and Health divisions, which is hoped should deliver a small profit before tax and positive cashflow from operations. We believe that such an outcome can be delivered as a result of the substantial positive changes implemented, and achievements made by the Company over recent months, including: (i) Material changes to the management group, including a new Managing Director of the Vita Health business, replacement of many of the Malaysian management, sales and marketing teams and the appointment of a Chief Financial Officer to the Company; (ii) A significant reduction in headcount and employee costs; (iii) A balance sheet restructure, involving asset write- downs and extinguishing overdrafts and senior debt. Subject to the continual improvement review process and the successful Rights Issue, which will provide Vita with the necessary funds to develop its products and strategic growth opportunities, the Company believes this restructure is mostly complete; (iv) Progress in the various legal cases involving Vita. Although no guarantees can be given, the Company is optimistic of successful outcomes; (v) Better results at Vita Medical, with improved trading in its European joint venture and in the development of new markets, such as Canada where approval to distribute Technegas was recently obtained. The roll out of Technegas generators and the sale of consumable kits is expected to increase significantly in 2003 as a result; (vi) Commencement of FDA Phase III clinical trials for Technegas in Australia in order to complete the submission of a New Drug Application (NDA) for approval to sell the Technegas system in the USA. It is expected that the NDA submission to the FDA will be filed before the end or the year; (vii) Implementation of plans in Vita Health's Asian business to overcome the negative impact of the various alleged fraudulent activities and mismanagement perpetrated against Vita. Combined with the continued profitable growth of its Australian subsidiary, Herbs of Gold, Vita Health is budgeted to return to profitability in 2003; and (viii) Relocation of Head Office to Sydney in April to be closer to Vita's Australian operational assets. In summary, it has been a very challenging year and the Company, its Shareholders, Directors, management and staff look forward to a much-improved 2003. Whilst there are still substantial risks associated with the Company, I recommend that you consider taking up your Entitlement pursuant to the Prospectus. I will be taking up my entitlement in full. Vanda Gould Chairman ================================ C H I N A & H O N G K O N G ================================ AGGRESSIVE ELECTRONICS: Wind up Hearing Set Next Month ------------------------------------------------------ A petition seeking the winding up of Aggressive Electronics Limited is scheduled for hearing before the High Court of Hong Kong on April 9, 2003 at 9:30 in the morning. ENW Electronics Limited of Unit 108, 1/F., Hewlett Centre, 54 Hoi Yuen Road, Kwun Tong, Kowloon, Hong Kong filed the petition on February 24, 2003. S.Y. Fung represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing S.Y. Fung, which holds office at Flat D, 10/Flr, Full Win Commercial Centre, 573 Nathan Road, Kowloon Hong Kong. BESTROUND INDUSTRIES: Winding up Hearing Next Week -------------------------------------------------- The High Court of Hong Kong will hear on April 2, 2003 at 9:30 in the morning the petition seeking the winding up Bestround Industries Limited. Bank of China (Hong Kong) Limited, the successor corporation of the China and South Sea Bank Limited pursuant to Bank of China (Hong Kong) Limited (Merger) Ordinance of 14/F., Bank of China Tower, No. 1 Garden Road, Central, Hong Kong filed the petition on December 30, 2002. K.W. Ng & Co. represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing K.W. Ng & Co., which holds office on the 11th Floor, Wings Building, 110 Queen's Road, Central Hong Kong. CHIAO TAI: Winding up Hearing Scheduled for Mid-April ----------------------------------------------------- Chiao Tai Chen Trading (HK) Co. Limited faces a winding up petition, which will be heard by the High Court of Hong Kong on April 16, 2003 at 9:30 in the morning. Bank of China (Hong Kong) Limited (the successor corporation to Kincheng Banking Corporation 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 filed the petition on March 5, 2003. Koo and Partners represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Koo and Partners, which holds office on the 21st-22nd Floors, Bank of China Tower, No. 1 Garden Road, Central Hong Kong. COSMOS WIN: Bank of China Seeks Wind up; Hearing on April 2 ----------------------------------------------------------- A petition seeking the winding up of Cosmos Win Enterprises Limited is scheduled for hearing before the High Court of Hong Kong on April 2, 2003 at 9:30 in the morning. Bank of China (Hong Kong) Limited (the successor corporation to The China and South Sea Bank Limited, Hong Kong Branch, pursuant to Bank of China (Hong Kong) Limited (Merger) Ordinance (Cap. 1167) of 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong filed the petition on February 14, 2003. Chu & Lau represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Chu & Lau, which holds office on the 2nd Floor, The Chinese General Chamber of Commerce Bldg., 24-25 Connaught Road, Central Hong Kong. EASTWARD HOLDINGS: Court to Hear Winding up Petition April 9 ------------------------------------------------------------ A petition seeking the winding up of Eastward Holdings Limited will be heard by the High Court of Hong Kong on April 9, 2003 at 9:30 in the morning. The Incorporated Owners of Kam Ming Court of Kam Ming Court, Nos. 12 & 14 Playing Field Road, Mongkok, Kowloon, Hong Kong filed the petition on February 24, 2003. C.L. Chow & Macksion Chan represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing C.L. Chow & Macksion Chan, which holds office at Rooms 501-3, 5th Floor, Hang Seng Building, 77 Des Voeux Road Central Hong Kong. EVER-GROWTH HANDBAG: Winding up Sought; Hearing Next Week --------------------------------------------------------- The High Court of Hong Kong will hear on April 2, 2003 at 9:30 in the morning the petition seeking the winding up of Ever- Growth Handbag Factory Company Limited. Bank of China (Hong Kong) Limited (the successor corporation to Sin Hua 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 filed the petition on February 14, 2003. Chu & Lau represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Chu & Lau, which holds office on 2nd Floor, The Chinese General Chamber of Commerce Bldg., 24-25 Connaught Road, Central Hong Kong. FITZROYA FINANCE: Wai Shun Files Winding up Petition ---------------------------------------------------- Fitzroya Finance Company Limited faces a winding up petition, which will be heard by the High Court of Hong Kong on April 9, 2003 at 9:30 in the morning. Wai Shun Construction Company Limited (In Compulsory Liquidation) of 7th Floor, Allied Kajima Building, 138 Gloucester Road, Wanchai, Hong Kong filed the petition on February 28, 2003. Tanner De Witt represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tanner De Witt, which holds office at 208-9, Tower 2, Lippo Centre, 89 Queensway, Hong Kong. GFT FASHION: High Court to Hear Winding Pp Petition April 9 ----------------------------------------------------------- The High Court of Hong Kong will hear on April 2, 2003 at 10:00 in the morning the petition seeking the winding up of GFT Fashion Limited. Joachim Wolfgang Starke of House 1, Silver Chalet, Lot 379, DD 224, Serenity Path, Silverstrand, Clear Water Bay, Hong Kong filed the petition on February 20, 2003. Robertsons represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Robertsons, which holds office on the 57th Floor, The Center, 99 Queen's Road, Central Hong Kong. HO NAM: Taiwanese Creditor Files Winding up Petition in HK ---------------------------------------------------------- A petition seeking the winding up of Ho Nam Marine Trading Company Limited will be heard by the High Court of Hong Kong on April 9, 2003 at 9:30 in the morning. Hung Hsing Yu of 120 Kang Pu 2nd Road, Lin Yuan Hsiang, Kaohsiung Hsien, Taiwan, R.O.C filed the petition on February 14, 2003. Sit Fung Kwong & Shum represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Sit Fung Kwong & Shum, which holds office at Suite 4428 COSCO Tower, Grand Millennium Plaza, 183 Queen's Road, Central Hong Kong. LAI SUN: Gives up 20% Stake in Development Site to Cut Debt ----------------------------------------------------------- Subsidiaries of CapitaLand and American International Group have agreed to buy a 20% stake of Lai Sun Development in a prime lot located at the heart of Hong Kong's business district. According to The Standard, the disposal is part of Lai Sun's attempt to cut debts, which stood at HK$8.19 billion at the end of July 2002. More importantly, the HK$463.3 million transaction will also scale down Lai Sun's debt to the companies to HK$208.3 million. The deal includes a prepayment premium of HK$46.7 million. Following the deal, the shareholdings of CapitaLand and AIG will be boosted to 45% each in the development site where Furama Hotel used to stand. Lai Sun retains 10%, according to The Standard. A HK$4 billion, 39-storey AIG Tower is expected to rise on the site by 2005. With only HK$766 million in July last year, the company had to drastically adopt a debt-restructuring plan that eventually forced it to sell in December a 32.75% stake in loss-making Asia Television. Last month, Lai Sun offered 28 HK cents a share, or HK$79.99 million in total, to buy a 50.01 per cent stake in its media and technology subsidiary eSun and make it wholly-owned. The deal wiped out HK$1.5 billion in outstanding loans it owes to eSun. The company blames its debt woes to the HK$7 billion purchase of Furama Hotel Enterprises in 1997 and the Asian financial crisis that followed soon after that caused property values to plunge. Lai Sun first sold a 65 percent stake in the development site for HK$1.88 billion in March 2000 to CapitaLand and AIG -- about a fifth of what it paid three years earlier. The 20 percent stake it has agreed to sell produced a net loss of HK$161 million for the year ending July 31, compared with a net profit of HK$53 million a year ago. It lost HK$169.1 million on the shareholders' loans as well in the last financial year, the paper said. "This transaction allows CapitaLand to increase its stake in a premium office at an attractive price," CapitaLand said. "Hong Kong is a strategic gateway to China and multinational companies will continue to occupy choice properties located in the prime central business district." LIWEAR GARMENT: Benefun International Lodges Wind up Suit --------------------------------------------------------- A petition seeking the winding up of Liwear Garment Co. Limited will be heard by the High Court of Hong Kong on April 9, 2003 at 9:30 in the morning. Benefun International Holdings Limited whose principal place of business in Hong Kong is located at 23rd Floor, Sing Ho Finance Building, 166-168 Gloucester Road, Wanchai, Hong Kong filed the petition on February 22, 2003. Messrs. Li, Wong & Lam represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Messrs. Li, Wong & Lam, which holds office at Unit 2602, 26th Floor, Tower One, 89 Queensway Hong Kong. PCCW LIMITED: Observers See Deeper Slump as Firm Delays Dividend ---------------------------------------------------------------- Market analysts expect the value of PCCW Limited stocks to slump further following the company's decision to cancel its first dividend payout originally scheduled for next year. Bloomberg says the announcement is a big blow to shareholders, who, in October last year, were assured of as much as 4.5% yield. The company blamed an unpredictable global outlook for the delay. Already, the company's stock value has fallen 97% from its peak in 2000. CLSA Ltd's Francis Cheung told Bloomberg, "there is little incentive [now] to hold the shares." He rates the stock to "sell." J.P. Morgan Securities Asia Pacific also downgraded the stock to "underweight" from "neutral," Bloomberg said. "Without a dividend, the share will have no downside support," said Edison Lee, head of telecommunications research for J.P. Morgan in Asia. Analysts attribute the delay to owner Richard Li's switching of priority to acquisition. Last month, he made an abortive takeover approach to British phone company Cable & Wireless Plc, prompting some investors to say he should instead focus on cutting the US$4.2 billion net debt left from his purchase of Cable & Wireless's Hong Kong unit two years ago. "It's hard not to conclude that the delaying of dividends is related to the company's new acquisition strategy," Mr. Cheung says. Meanwhile, the company posted recently a bigger-than-expected 2002 loss of US$995 million. The loss includes a US$1.1 billion write-off at Reach Ltd., the company's undersea-cable venture, and an 8.5 percent decline in sales. Its fixed-line business, which accounts for nine-tenths of sales, posted a 9 percent drop in revenue as its market share shrank to 82 percent from 89 percent, Bloomberg says. Operating profit rose 9 percent after the company cut jobs and trimmed costs. It produced US$430 million "free cash flow" for the year, the company said, beating its target of US$250 million. Mr. Li said the company would use cash to reduce debt. He also adds that the company would still pay dividend in the "medium term." Analysts say this means as far back as 2006. J.P. Morgan predicts the firm's earnings to drop 19% this year and 16 percent in 2004, adding that earnings at cable unit Reach will fall by half this year before interest, taxes, depreciation and amortization. Reach, a venture with Telstra Corp of Australia, has been hurt by a price slump caused by a glut of undersea-cable capacity, Bloomberg says. The venture contributed HK$738 million (US$95 million) in pretax profit to PCCW last year, compared with HK$706 million in the 11 months ended December 31, 2001. A further write-off at Reach could delay PCCW's first dividend to as late as 2006 because it will take even longer for PCCW to return to positive equity, J.P. Morgan and Credit Suisse First Boston told Bloomberg. The company had a shareholders' deficit of HK$5.9 billion at the end of 2002, a legacy of Mr. Li's acquisition of Cable & Wireless HKT Ltd. In related development, Deputy Chairman Francis Yuen told Bloomberg recently that PCCW would pay US$900 million debt at the HKT unit within two years to lift a dividend restriction imposed by banks. The repayment will lower the unit's ratio of debt to earnings before interest, taxes, depreciation and amortization to 2.5 times, allowing it to pay 100 percent dividends to PCCW, Mr. Yuen said. WEL-EXPRESS DEVELOPMENT: Court Sets Hearing on Wind Up Petition --------------------------------------------------------------- Wel-Express Development Limited faces a winding up petition lodged before the High Court of Hong Kong. A hearing has been scheduled for April 16, 2003 at 9:30 in the morning. Bank of China (Hong Kong) Limited (the successor corporation to Po Sang Bank Limited 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 filed the petition on February 26, 2003. Koo and Partners represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Koo & Partners, which holds office on the 21st-22nd Floors, Bank of China Tower, No. 1 Garden Road, Central Hong Kong. WELL LOK: Petition Seeking Wind up to be Heard April 16 ------------------------------------------------------- The High Court of Hong Kong will hear on April 16, 2003 at 9:30 in the morning the petition seeking the winding up of Well Lok Printing Limited. Bank of China (Hong Kong) Limited (the successor corporation to Sin Hua 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 filed the petition on February 28, 2003. Tsang, Chan & Wong represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tsang, Chan & Wong, which holds office on the 16th Floor, Wing On House 71 Des Voeux Road Central Hong Kong. ================= I N D O N E S I A ================= BERAU COAL: Creditors Grant Firm Five-year Breathing Spell ---------------------------------------------------------- PT Berau Coal, which has been in technical default since December, has reportedly succeeded in asking creditors to extend payment on US$29.15 million debts until 2008, Asia Pulse said yesterday. Citing insiders privy to the deal, the agreement with creditors was reached last weekend. According to Bisnis Indonesia, the company had been negotiating with five creditors since defaulting on the debt in December. The coal miner is one of the subsidiaries of publicly listed heavy equipment company, PT United Tractors, which has also defaulted on US$88 million debts, Asia Pulse says. United Tractors has been largely unsuccessful in peddling its stake in the company. KALBE FARMA: Won't Junk Igar Jaya Stake Sale, Says Spokesman ------------------------------------------------------------ Indonesian pharmaceutical company, PT Kalbe Farma Tbk, will continue to peddle its stake in PT Igar Jaya Tbk despite earlier setbacks, Asia Pulse said yesterday. A number of prospective local and foreign bidders recently backed out from the deal after failing to agree with Kalbe Farme on a reasonable price, the report said. An unnamed spokesman told Asia Pulse the company is now seeking new strategic investors that would offer a better price for the asset. The company is currently negotiating the rollover of about US$85 million in outstanding debts. In June last year, the company also asked creditors to extend repayments from 2005 to 2010, with a grace period until 2007. KALBE FARMA: Asks Creditors to Extend Due Date to 2010 ------------------------------------------------------ Kalbe Farma will meet creditors next month to consider a debt rollover proposal that will extend repayment of some US$85 million debt until 2010. About 35 creditors -- led by a steering committee representing the Royal Bank of Scotland, ABN Amro, Deutsche Bank, West LB, and Sumitomo Mitsui -- will study the proposal prepared by PricewaterhouseCoopers, according to company director Vidjongtius. The debt subject of the proposal is due for repayment in January 2005, Asia Pulse said. The report did not say where the meeting would take place or the exact date of the meeting. ========= J A P A N ========= AOZORA BANK: Stake Sale Unlikely Before End-March ------------------------------------------------- The sale of a major stake in Aozora Bank may not be completed this month, Reuters reported Monday, citing Aozora Bank President Hiroshi Maruyama. Softbank Corporation has put a 49 percent stake in Aozora up for sale. Among the contenders are Cerberus Capital Management, a U.S. fund, and Japanese bank Sumitomo Mitsui Financial Group. Aozora Bank has a total of 469.7 billion yen in bad loans as of June, down 19.9 billion yen from the end of March 2002, the Troubled Company Reporter-Asia Pacific reported recently. Aozora Bank (formerly Nippon Credit Bank) was the second Japanese credit bank nationalized in the wake of Asia's financial crisis after the Long-Term Credit Bank of Japan (now Shinsei Bank, owned by US investor group Ripplewood Holdings). Bad loans and Japan's "Big Bang" financial deregulation added to the bank's troubles. FUJITSU LIMITED: Eyes HDD Tie Up With Other Firms ------------------------------------------------- Fujitsu Limited plans a tie up with other firms in the field of hard disk drive (HDD) development and production but is also considering selling its HDD operations, Kyodo News reported. The report said talks related to the HDD division are under way with both Japanese and foreign companies and that Fujitsu want to engineer a tie-up arrangement by March 2004. Fujitsu Limited will lower wages in all levels of the Company by reducing the size of standard annual pay hikes, the Troubled Company Reporter-Asia Pacific reported recently. The move is expected to affect 30,000 union members, who currently receive an annual raise of 1 to 1.5 percent of their base pay, the paper said, noting that the move is a drastic step for a major Japanese firm, which traditionally increase their employees' base pay automatically each year. The Company hopes to reduce overhead and improve its competitiveness in the international arena. This, as the Company has suffered severely from poor performance in recent months. JAPAN AIRLINES: Seeks 10% Domestic Fare Hike -------------------------------------------- Japan Airlines System Corporation has sought approval from the Fair Trade Commission (FTC) to raise domestic airfares by about 10 percent to make up for higher fuel costs after oil prices rallied on concern over war in Iraq, the Nihon Keizai Shimbun (Nikkei) and Reuters said on Friday. Japan Airlines expects a second straight annual operating loss after a slowdown in international flight reservations due to worries over the Iraq war. The airline expects a group operating loss of two billion yen ($16.63 million) for the business year ending in March. The group aims to cut an additional 600 jobs, or 2.8 percent of its workforce, by March 2006. To reduce costs and overlap from the merger, it said last year it would reduce its workforce by 3,000 staff. Japan Airlines (JAL) and Japan Air System (JAS) merged to form Japan Airlines System in October 2002. JAPAN AIRLINES: Introduces Special Procedures for Int'l Tickets --------------------------------------------------------------- In view of the current situation in Iraq, effective March 18, 2003, the following special procedures are introduced for JAL Group airlines' international tickets, and apply to passengers holding individual discount and promotional tickets such as "JAL Goku" etc. * For passengers holding international tickets, which have fare rule restrictions issued on and before March 18, 2003, for travel before April 8, 2003, one change may be made to the travel schedule and at no charge. Changes must be for itineraries to be completed up until and including December 31, 2003. (The above procedures also apply to mileage award tickets of JAL/JAA/JAS flights. It may not be possible to meet your desired travel requirements depending on seat availability and applicable fare conditions. Changes may not be possible on flights of airlines other than those of the JAL Group). * Passengers wishing to postpone their itinerary should contact Japan Airlines, Japan Air System or Japan Asia Airways up until the day before the original departure date shown on their ticket. Reservations may be cancelled in the normal manner if no contact is received before the applicable date. * The above procedures will also apply to changes to unused ticket coupons of passengers who have already departed. For more information and details on these special procedures please contact Japan Airlines, Japan Air System or Japan Asia Airways as below: Japan Airlines: 0120-25-5931 Japan Air System: 0120-7-11283 Japan Asia Airways: 0120-747-801 (For information on Mileage Award tickets) Japan Airlines, Japan Asia Airways:0120-747-103 Japan Air System:0120-4-55283 MITSUBISHI TOKYO: Discloses Adjustment in Preferred Shares ---------------------------------------------------------- Mitsubishi Tokyo Financial Group, Inc. (MTFG; President: Shigemitsu Miki) announced that, pursuant to the terms and conditions of Class 2 Preferred Shares provided in the Articles of Incorporation, the initial conversion price as well as the Conversion Ceiling Price and the Conversion Floor Price of the Class 2 Preferred Shares will be adjusted as stated below, UK Wire reports. 1. Adjustment of the Initial Conversion Price Type of shares Class 2 Preferred Shares Initial conversion price after adjustment Japanese Yen 1,357,559.2- Initial conversion price before adjustment Japanese Yen 1,359,784.5- 2. Adjustment of the Conversion Ceiling Price Type of shares Class 2 Preferred Shares Conversion Ceiling Price after adjustment Japanese Yen 1,357,559.2- Conversion Ceiling Price before adjustment Japanese Yen 1,359,784.5- 3. Adjustment of the Conversion Floor Price Type of shares Class 2 Preferred Shares Conversion Floor Price after adjustment Japanese Yen 696,898.5- Conversion Floor Price before adjustment Japanese Yen 698,040.9- 4: Effective Date On and after March 27, 2003 Mitsubishi Tokyo Financial Group Inc. said that latent losses on domestic shares held by its group banks totaled 723.6 billion yen at the end of December, amid the protracted slump in the Tokyo stock market, the Troubled Company Reporter-Asia Pacific reported. The total broke down into 464 billion yen for the Bank of Tokyo- Mitsubishi and 259.6 billion yen for Mitsubishi Trust & Banking Corporation. Saddled with unprofitable investments and loans, the bank is also considering auctioning some to investors. For further information, please contact: Kohei Tsushima, General Manager, Public Relations Office Tel: 81-3-3240-8149 ========= K O R E A ========= DAEWOO SECURITIES: Woori Denies Takeover Report ----------------------------------------------- Woori Financial Group denied reports that a deal to acquire Daewoo Securities is in the offing, the Korea Herald reported Monday. The group is still in talks with state-run Korea Development Bank (KDB) to acquire Daewoo Securities. Nothing has been decided yet, including the method of payments. Meanwhile, media reports indicate that Woori Financial Group is planning to pay KDB in cash for the stake purchase. The Troubled Company Reporter Asia-Pacific reported in November that Hana Bank would revive plans to acquire Daewoo Securities Co. by March 2003 to expand its brokerage business after its merger with SeoulBank is completed in December of last year. The brokerage, which is up for sale, posted a wider net loss of 36.7 billion won in the three months ending September 30, compared with 11 billion won loss based on preliminary figures announced in October. HYUNDAI CORPORATION: Gets Debt Repayment Deferral ------------------------------------------------- Hyundai Corporation, whose capital has been eroded completely due to three consecutive years of losses, received a three-month repayment reprieve on US$150 million debt owed to Korea Development Bank and other banks, JoongAng Ilbo daily and AFX Asia reported Sunday. Korea Exchange Bank and Woori Bank will also roll over 150 billion won each in debt owed by the Company. The report said other banks are also expected to provide debt repayment deferrals to the Company as the Company is seen viable. HYUNDAI CORP.: KSE Issues Investment Warning -------------------------------------------- The Korea Stock Exchange (KSE) informed investors to be prudent in investing in Hyundai Corporation stocks as its capital is in the red by 50 billion won ($40 million), the Korea Times reports. KSE said the Company's operating loss was 161 billion won in 2002 versus a capital of 111 billion won. The KSE ordered the general trading Company to recapitalize by the end of this month. Its failure to do so will result in blacklisting the firm's shares as issues to be supervised on the KSE trading, it said. KOREA ELECTRIC: Pays Cash Dividend ---------------------------------- Korea Electric Power Corporation (KEPCO) decided on a cash dividend of 800 won or 16 percent of its share's par value at its regular shareholders' meeting on March 21, Asia Times reports. The dividend was higher than last year's 11 percent. According to Wright Investor's Service, at the end of 2001, Korea Electric Power Corporation (KEPCO) had negative working capital, as current liabilities were 9.29 trillion Korean Won while total current assets were only 5.37 trillion Korean Won. DebtTraders reports that Korea Electric Power Corp.'s 8.250 percent bond due in 2005 (KORE05KRN1) trades between 112.504 and 113.066. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=KORE05KRN1 POSCO CO.: Adopts Five-day Workweek ----------------------------------- POSCO Co. will soon introduce a five-day workweek together with other major Korean firms, Digital Chosun reports. The steel firm currently gives its employees every other Saturday off. POSCO Co., formerly known as Pohang Iron & Steel Company Limited, planned to repay 1.2 trillion won ($955 million) in debt maturing this year ahead of schedule using its own cash reserves, The Troubled Company Reporter-Asia Pacific reported recently. The steel maker will repay 200 billion won in privately placed debt, 50 billion yen worth of Samurai bonds and $174 million in Yankee bonds. After repayments, the Company's debts would be lowered to three trillion won. SK GLOBAL: Revises 2001 Financial Result ---------------------------------------- SK Global Co. has revised its 2001 net loss to 254 billion won from the 131 billion won it had reported earlier, the Korea Economic Daily and Dow Jones reports, quoting creditors. After the revision, the Company's assets shrank to 6.79 trillion won as of end-2001 from 6.88 trillion won, while liabilities surged to 5.84 trillion won from 4.65 trillion won, the report said. The creditors earlier agreed to freeze the Company's debt payment for three months after prosecutors discovered accounting irregularities of 1.55 trillion won earlier this month. SK GLOBAL: Foreign Banks to Sue Firm ----------------------------------- Foreign creditors of SK Global will file lawsuits against SK Global for its accounting fraud to get compensation for their loans, the Korea Times said on Friday. Union de Banques Arabes et Francaise (UBAF), a French based commercial bank, has already filed a damage claim of $18.4 million (22.1 billion won) against the firm, and other foreign banks, including HSBC, Citibank and Union Bank of California, are likely to follow suit. The moves by foreign lenders mean local banks could have no choice but to delay placing SK Global under their control, freezing its debts for the next three months. UBAF had issued a letter of credit for $17 million and paid bills on February 5 and March 5, without being aware of SK Global's accounting fraud. Local non-banking creditors are also said to be considering lawsuits and the temporary seizure of the Company's assets. =============== M A L A Y S I A =============== HIAP AIK: Plan to Regularize Finances Still Lacks Approval ---------------------------------------------------------- Reference is made to the announcement made by Hiap Aik Construction Bhd on 9 April 2002 ("First Announcement"), the announcement made by AmMerchant Bank Berhad (formerly known as Arab-Malaysian Merchant Bank Berhad) ("AmMerchant Bank") on 14 November 2002 ("Requisite Announcement") and on 20 November 2002. In accordance with Practice Note 4/2001 of the Listing Requirements of Kuala Lumpur Stock Exchange ("PN4"), an affected listed issuer, which has made the Requisite Announcement and submitted its plan to regularize its financial condition to the relevant authorities, must obtain all approvals necessary for the implementation of such plan within four(4) months from the date of submission of such plan for approval, i.e. by 20 March 2003. AmMerchant Bank, on behalf of the Company, wishes to inform that to date, the Company has only received an approval from the Foreign Investment Committee on 30 December 2002. The remaining relevant authority is currently in the midst of reviewing the Proposed Restructuring Scheme. An application has been made to the Kuala Lumpur Stock Exchange by the Company for an extension of time of two(2) months, i.e. until 19 May 2003 to obtain the necessary approvals for the implementation of the Proposed Restructuring Scheme. MENTIGA CORPORATION: KLSE Raps Firm for Announcement Oversight -------------------------------------------------------------- The Kuala Lumpur Stock Exchange in consultation with the Securities Commission, publicly reprimanded Mentiga Corporation Berhad for breach of paragraph 9.19(19) of the Listing Requirements (LR). Paragraph 9.19(19) of the LR states that a public listed company is required to make an immediate announcement to the Exchange for public release for any application filed with a court to wind up the company or any of its subsidiaries. MENTIGA did not make an immediate announcement to the Exchange pursuant to Paragraph 9.19(19) of the LR in respect of a winding-up petition served on MENTIGA on 13 March 2002. The public reprimand was imposed pursuant to paragraph 16.17 of the LR after taking into consideration all relevant factors including the fact that MENTIGA is a repeat offender of the LR and after consultation with the Securities Commission. The Exchange had publicly reprimanded and imposed a fine of RM10,000 on MENTIGA on 6 October 2001 for breach of Section 60(b) of the Main Board Listing Requirements where the Company failed to issue printed annual audited accounts within 4 months from the close of the financial year end of the Company. The Exchange views the above contravention seriously and hereby cautions the Company and its Board of Directors of their responsibility to maintain appropriate standards of corporate responsibility and accountability in order to achieve greater disclosure and transparency to its shareholders and the investing public. METROPLEX BERHAD: Says Negotiations with Creditors Ongoing ---------------------------------------------------------- This refers to the earlier announcement on 21 February 2003 in relation to Metroplex Berhad's restraining order and proposed debt restructuring. We wish to advise that following the restraining order granted by the High Court of Malaya, Metroplex Bhd is continuing to work out its debt restructuring with its creditors. An announcement would be made to the Kuala Lumpur Stock Exchange once an agreement has been reached on this. PLANTATION & DEVELOPMENT: Howarth Named Independent Auditor ----------------------------------------------------------- Reference is made to the announcement dated 31 January 2003, made by AmMerchant Bank Berhad, on behalf of Plantation & Development (Malaysia) Bhd, relating to the Securities Commission's approval for the Proposed Restructuring Scheme of P&D via its letter dated 28 January 2003 wherein the SC's approval was subject to, inter-alia, the appointment by the Company or Fountain View Development Berhad of an independent audit firm within two (2) months from the date of the SC's approval letter. In this regard, AmMerchant Bank, on behalf of the Company, is pleased to announce that the Company has appointed Messrs Horwarth as the said independent audit firm on 19 March 2003. SRI HARTAMAS: Gives up Hope for Recovery, Names Liquidators ----------------------------------------------------------- The Special Administrators of Sri Hartamas Berhad ("SHB") hereby give notice that the Workout Proposal of the Company, a wholly owned subsidiary, was approved in accordance with the Pengurusan Danaharta Nasional Berhad Act 1998 ("Danaharta Act") by Pengurusan Danaharta Nasional Berhad ("Danaharta") and the Secured Creditors of the Company on 28 January 2002 and 29 January 2002 respectively. Pursuant to the said Workout Proposal and following the disposals of the assets and the debt settlement, it was proposed that the Company be liquidated. The directors of the Company had on 21 March 2003 resolved: (i) That the Company cannot by reason of its liabilities continue its business and that it be wound up voluntarily; (ii) That pursuant to Section 255 of the Companies Act, 1965, Gan Ah Tee and Ooi Woon Chee c/o KPMG Corporate Services Sdn Bhd, 8th Floor, Wisma KPMG, Jalan Dungun, Damansara Heights, 50490 Kuala Lumpur, be and are hereby appointed jointly and/or severally as Provisional Liquidators for the purpose of the winding up; and (iii) That separate meeting of members and creditors of the Company be convened on 17 April 2003 pursuant to Section 255(1)(b) of the Companies Act, 1965. Pursuant to Section 28(2) of the Danaharta Act, the Oversight Committee, on the recommendation of Danaharta, has approved the release and discharge of the Special Administrators of the Company with effect from 21 March 2003. In view of the above, notice is hereby given that the Special Administrators of the Company have been released from their appointment and discharged of all duties and liabilities with effect from 21 March 2003. The moratorium in respect of the Company is terminated with effect from 21 March 2003. Yours faithfully For and on behalf of Sri Hartamas Berhad - Special Administrators Appointed Ooi Woon Chee Special Administrator * 2002 Bankruptcies Break Record Set in 1985 -------------------------------------------- Analysts expect the number of corporate and personal bankruptcies to rise further this year and might even upend the 2002 tally, a record high since 1985, Agence France Presse said yesterday. "Bankruptcy numbers are lagging indicators for the economy, so with the slow economic pick-up coming out of 2001 we may see bankruptcies continue to rise," an economist told the news agency. Wong Chee Seng, senior economist at DBS Bank said: "Assuming that the economy [this year] grows by the projected 4-5 percent, the bankruptcy numbers will stabilize - but if there is sub-par growth at two to three percent, the problem of rising bankruptcies will come back." For 2002, corporate and personal bankruptcy totaled 12,268, the highest yearly figure since 1985 and up 5 percent from 11,685 cases in 2001, according to The Edge newspaper. Last year's bankruptcies also grew by more than 50 percent since 1998, when the economy underwent its worst recession since the country's independence in 1957, the paper adds. ===================== P H I L I P P I N E S ===================== NATIONAL POWER: Seeks Proposals for $250 Million Bond ----------------------------------------------------- The National Power Corporation (Napocor) is seeking proposals for a $250 million bond issuance next month to finance its operating expenses, Dow Jones reports, citing Power Sector Asset and Liabilities Management Corp. President Edgardo del Fonso. Del Fonso said banks are expected to start submitting proposals this week. The bond structure might either be in U.S. dollars, euro or yen with a maturity of 15 to 20 years. The Asian Development Bank (ADB) will provide cover on an agreed portion of the total debt service, the report said. NATIONAL BANK: Annual Stockholders' Meeting on May 27 ----------------------------------------------------- The Philippine National Bank (PNB) advised the Philippine Stock Exchange (PSE) that the Board of Directors of the bank in its regular meeting held on March 21, 2003, approved the holding of the Annual Stockholders' Meeting on May 27, 2003 at 8:00 a.m. at the Ballroom Upper Lobby, Century Park Hotel, 599 Pablo Ocampo Sr. St. Malate, Manila. The Agenda for the meeting are as follows: 1. Call to Order 2. Secretary's Proof of Notice and Quorum 3. Approval of the Minutes of the 2003 Annual Stockholders' Meeting held on June 25, 2002 4. Report of the President on the Results of Operations for the Year 2002 5. Approval of the 2002 Annual Report 6. Ratification of All Acts and Proceedings of the Board of Directors and Corporate Officers since the 2002 Annual Stockholder's Meeting 7. Election of Directors 8. Appointment of External Auditor 9. Other Matters 10. Adjournment For this purpose, only stockholders of record as of April 28, 2003 will be entitled to vote at this meeting. The press release is located at http://www.pse.org.ph/html/disclosure/pdf/dc2003_0823_PNB.pdf PHILIPPINE AIRLINES: Undecided on Fare Hike at This Stage --------------------------------------------------------- The airline fares of Philippine Airlines (PAL) will stay at their present levels for the moment according to PAL President Avelino Zapanta, Asia Pulse reports. "There are still no plans although we are studying it very Carefully. Remember, even if fuel prices have skyrocketed in the previous months and our excise tax exemption for imported jet fuel has been removed last month, we have not raised fares," Zapanta said. PAL said the final decision would be known before April 15. PHILIPPINE LONG: Clarifies Telecom Row Settlement Report -------------------------------------------------------- This is in reference to the news article entitled "Telecom row settlement seen" published in the March 21, 2003 issue of Today. The article reported in part "It is likely that AT&T Corporation will give in to the Philippine carriers' demand for higher termination rates. Initial feedback from the Philippine Long Distance Telephone Co.'s (PLDT) two-day meeting with AT&T in Hong Kong has it that the US carrier is willing to talk things over to come into a possible agreement that would likely end the dispute. 'We are pleased that AT&T clearly understands our position and is exploring all possible options to resolve the dispute,' said PLDT Vice President for media Affairs Butch Jimenez. He described the first day of discussions with AT&T as exploratory in nature. PLDT stressed in the meeting that it will not abide by the Abelson Order unless both parties agreeon a new rate." Philippine Long Distance Telephone Company (TEL), in its letter dated March 21, 2003, advised the Exchange that: "Upon the request of AT&T, a meeting was held between AT&T and PLDT executive to discuss possible ways to resolve the dispute on termination rates between the parties. The parties have likewise agreed to hold continuing discussions on the matter." For a copy of the press release, go to http://www.pse.org.ph/html/disclosure/pdf/dc2003_0826_TEL.pdf PHILIPPINE LONG: Investors' Briefing Set For Today --------------------------------------------------- The Philippine Long Distance & Telephone Co. (PLDT) will hold an investors' briefing to discuss the Company's full year 2002 financial and operating results on Tuesday, March 25, 2003 at 3:00 pm at the Camella Room, Mezzanine Floor, Dusit Hotel Nikko, Makati City. Philippine Long Distance Telephone Co (PLDT) expects to resume dividend payments in the fist half of 2005, TCRAP reports, citing Christopher Young, the firm's Chief Financial Adviser. PLDT suspended payouts to ordinary shareholders in mid-2001 but has kept up preferred dividend payments. DebtTraders reports that Philippine Long Distance Telephone's 11.375 percent bond due in 2012 (TELP12PHS1) trades between 92 and 94. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=TELP12PHS1 VICTORIAS MILLING: JGS Offers to Acquire Milling Firm For P2B ------------------------------------------------------------- JG Summit Holdings (JGS) has offered to acquire the shares, convertible notes and liabilities of Victorias Milling Corporation (VMC) for 2 billion pesos, BPI Securities reports. JGS also offered to inject 300 million to VMC in the form of a senior loan convertible equity. VMC was taken over by 25 creditor-banks last year under a 2.5 billion pesos equity-for-debt swap agreement. The banks have a 69.5 percent stake in the Company. ================= S I N G A P O R E ================= CHARTERED SEMICONDUCTOR: Finances May Fluctuate Drastically ----------------------------------------------------------- Chartered Semiconductor Manufacturing Ltd.'s revenues, expenses and operating results have varied significantly in the past and may fluctuate significantly from quarter-to-quarter in the future due to a number of factors, many of which are outside our control. These factors include, among others: - The cyclical nature of both the semiconductor industry and the markets served by our customers; - Changes in the economic conditions of geographical regions where our customers and their markets are located; - Shifts by integrated device manufacturers, or IDMs, between internal and outsourced production; - Inventory and supply chain management of our customers; - The loss of a key customer or the postponement of an order from a key customer or the failure of a key customer to pay accounts receivables in a timely manner; - The occurrence of accounts receivables write-offs; - The rescheduling or cancellation of large orders; - The rescheduling or cancellation of planned capital expenditures; - Our inability to qualify new processes or customer products in a timely manner; - The return of wafers due to quality or reliability issues; - Malfunction of our wafer production equipment; - Unforseen delays or interruptions in our plans for new fabrication facilities; - The timing and volume of orders relative to our available production capacity; - Our ability to obtain raw materials and equipment on a timely and cost effective basis; - Environmental events or industrial accidents such as fires or explosions; - Our susceptibility to intellectual property rights disputes; - Impairment charges on assets held and used; - Our ability to continue with existing and entering into new partnerships, technology and supply alliances on mutually beneficial terms; - Currency and interest rate fluctuations that may not be adequately hedged; and - Technological changes. Due to the factors noted above and other risks discussed in this section, many of which are beyond our control, you should not rely on quarter-to-quarter comparisons to predict our future performance. Unfavorable changes in any of the above factors may seriously harm our company. In addition, it is possible that in some future periods our operating results may be below the expectations of public market analysts and investors. In this event, the price of our securities may under perform or fall. For more information, go to http://www.shareholder.com/Common/Edgar/1095270/11455-49-03- 278/03-00.pdf CHARTERED SEMICONDUCTOR: Explains Infrastructure-related Risks -------------------------------------------------------------- Chartered Semiconductor Manufacturing Ltd. may face several risks in constructing and equipping new fabrication plants, a Company statement said. Where we expand by constructing new fabrication plants, there will be certain uncontrollable events that could delay the project or increase the costs of construction and equipping, even if we take the project management and planning steps we believe are necessary to complete the new fabrication plants on schedule and within budget. Such potential events include: - A major design and/or construction change caused by changes to the initial building space utilization plan or equipment layout; - Technological, capacity and other changes to our plans for new fabrication plants necessitated by changes in market conditions; - Shortages and late delivery of building materials and facility equipment; - Delays in the installation, commissioning and qualification of our facility equipment; - A long and intensive wet season that limits construction; - A shortage of foreign construction workers or a change in immigration laws preventing such workers from entering Singapore; - Strikes and labor disputes; - On-site construction problems such as industrial accidents, fires and structural collapse; - Delays in securing the necessary governmental approvals and land lease; - Delays arising from modifications in capacity expansion plans as a result of uncertainty in economic conditions; and - Delays arising from demand exceeding supply and long lead times for delivery of equipment during periods of growth in the industry. For more information, go to http://www.shareholder.com/Common/Edgar/1095270/11455-49-03- 278/03-00.pdf SEE HUP: Dormant Unit Struck-off From SGX ----------------------------------------- The Board of Directors of See Hup Seng Limited announced that an application has been submitted to the Registrar of Companies for its wholly-owned subsidiary, See Hup Seng (China) Limited SHS China, to be struck-off from its Register. SHS China is a dormant Company for which no business activity is expected to carry out within the next few years. This striking- off exercise is in line with the Group's policy to restructure the group. WEE POH: Sets EGM on April 7 ---------------------------- The Extraordinary General Meeting (EGM) of Wee Poh Holdings Limited will be held at Orchid Country Club, 1 Orchid Club Road, Boardroom 1, Singapore 769162 on 7 April 2003 at 9.30 a.m. for the purpose of considering and, if thought fit, passing the following resolution, with or without any modifications:- Ordinary Resolution THAT, subject to the approval of shareholders of the Company being obtained in general meeting for the proposed capital reduction to reduce the par value of the Company's ordinary shares from $0.20 to $0.005 each (the "Capital Reduction and subsequent to the Capital Reduction being effected by the Company, the Directors of the Company be and are hereby authorized to allot and issue at least 40,000,000 but up to a maximum of 80,000,000 new ordinary shares of $0.005 each (the "Shares at an issue price of $0.05, credited as fully paid-up, free from all liens, charges and other encumbrances and ranking pari passu in all respects with the then existing Shares to the WPC Creditors, or such number of them, for the settlement of certain amounts owing to them by Wee Poh Construction Co. (Pte.) Ltd., a subsidiary of the Company, of at least $2.0 million but up to a maximum of $4.0 million (the Best Effort Debt Conversion) THAT the Directors of the Company be and are hereby authorized, on their absolute discretion, to complete and do all such acts and things including, without limitation, offering such number of Conversion Shares to each WPC Creditor in settlement of such portion of the amounts owing to them by Wee Poh Construction Co. (Pte.) Ltd., executing all such documents and approving any amendments, alterations or modifications to any documents as they may consider necessary, desirable or expedient to give full effect to the Best Effort Debt Conversion. WEE POH: Issues Update on Re-capitalization Plan ------------------------------------------------ Further to the Announcement dated 10 February 2003, the Directors of Wee Poh Holdings Limited announced to the shareholders of the Company that, at the Court hearing on 21 February 2003 for the winding-up petition (the Petition) served by Wili Marketing Pte Ltd on the Company's subsidiary, W&P Piling Pte Ltd, on 4 February 2003 the Court had adjourned the hearing of the Petition to 25 April 2003 pending due consideration. The Company will continue to update Shareholders on any further developments on matters relating to the re-capitalization plan. =============== T H A I L A N D =============== THAI PETROCHEMICAL: Family Not Indebted to Firm, Says Prachai ------------------------------------------------------------- The report that his family would soon face a THB8.8 billion demand is groundless, says Prachai Leophairattana, CEO and plan administrator of TPI Polene. In an interview with Business Day recently, Mr. Prachai said Thai Petrochemical Industry never granted any loan to any member of his family, branding the report traced to a director of Effective Planners as malicious. He admitted that while he was the company's major shareholder, loans were made to some TPI subsidiaries, but never to a family member as claimed by the report. He noted that loans were given to TPI subsidiary companies such as TPI GIEC, TPI Holding, and Pornchai Enterprise. "Such loan provisions given to those subsidiaries were undertaken in earnest and in accordance with the law," he told Business Day. He said after lending to its subsidiaries, TPI placed some of its shares as a guarantee with financial institutions. "All the obligatory financial documents that TPI had endorsed are with court receivership officers and can be examined any time," he assured. Mr. Prachai suspects the damaging report has something to do with the plan by TPI Polene to raise capital by another US$180 million through the sale of shares at 17 baht a piece. In addition, he also plans to urge the Central Bankruptcy Court to revise key rehabilitation requirements on TPI and the postponement of the sale of US$200 million worth of non-core assets -- all of which contradict the proposals of Effective Planners. 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, Mavy Nieza-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 ***