/raid1/www/Hosts/bankrupt/TCRAP_Public/030610.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, June 10 2003, Vol. 6, No. 113
Headlines
A U S T R A L I A
ACMA ENGINEERING: Posts Final Share Buy-Back Notice
EARTH SANCTUARIES: Posts John Wamsley's Comments in Manly Daily
MAYNE GROUP: Acquires Gippsland Pathology Service
MIM HOLDINGS: Requests Trading Halt
MIM HOLDINGS: Shareholders OK Xstrata Scheme of Arrangement
OPEN TELECOMMUNICATIONS: AGM to be Held on June 30
ORBITAL ENGINE: $6M Capital Raising Successful
ORBITAL ENGINE: Requests Trading Halt
SNOWBALL GROUP: Undergoes $1.3M Capital Raising
TELEVISION & MEDIA: Issues Ordinary Shares
C H I N A & H O N G K O N G
AES CHINA: S&P Rates Note Issue Due 2010 'B+'; Stable Outlook
CHAMPION LIGHT: Winding Up Petition Set on Wednesday
DISTRIBUTION I: Winding Up Hearing Scheduled
INTERHATS IMEX: Winding Up Petition Slated for Hearing
PROASIA FOOD: Winding Up Hearing Set on June 18
SKYNET (INTL): Requests Trading Suspension
SUN LING: Winding Up Sought by Fortis Bank
VISION TECH: Narrows 2002 Net Loss to HK$24.519M
I N D O N E S I A
BANK INDOVER: Liquidated If Not Sold This Year, Says BI
KIMIA FARMA: To Merge With Indofarma by Next Year
PT DANAREKSA: Selling DJI Shares for US$6.5M
J A P A N
ALL NIPPON: Cancels Taipei Service Until August
ALL NIPPON: Invites Staff to Take Unpaid Holiday
AOYAMA TRADING: Moody's Changes Rating Outlook to Negative
DAIEI INC.: Carrefour Eyes Tie-up With Retailer
DAIEI INC.: Shares Up 6.45% After Carrefour Tie-Up Report
FUJITSU LIMITED: Unveils World's First Multi-Chip Package
NIKKO CORDIAL: Narrows FY02 Net Loss to Y18.94B
NIPPON TELEGRAPH: Upgrades Fiber-Optic Communications
K O R E A
CHOHUNG BANK: Banks Face Overhaul After Failing to Perform
SK GLOBAL: Outside Directors May Resign
SK GLOBAL: Sovereign Blames Creditors
M A L A Y S I A
CDL HOTELS: RAM Downgrades Bonds From P1(s) to P2(s)
C.I. HOLDINGS: April Defaulted Interest Payment Hits RM5.753M
CSM CORPORATION: Inks Restructuring Agreement With Dutarama
ESPRIT GROUP: Appeals Against Securities De-Listing
GLOBAL CARRIERS: Proposes Shareholders' Mandate; AoA Amendments
L&M CORPORATION: June 27 8th AGM Scheduled
LONG HUAT: Credit Facilities Defaulted Status Remains Unchanged
LONG HUAT: High Court Grants 90-Day Restraining Order
PERAK CORPORATION: Appoints Mahmud as Non-Exec Director
RAHMAN HYDRAULIC: Extends Proposed Disposal Approval Period
RENONG BERHAD: Inks Proposed Acquisition SSA With Probadi
TAP RESOURCES: SC Extends Proposals Implementation Deadline
TECHNO ASIA: 34th AGM Fixed on June 25
UTUSAN MELAYU: Obtains SC's Nod on Proposals
YCS CORPORATION: Faces Writ of Summons Filed by AmFinance
P H I L I P P I N E S
BAYAN TELECOMMUNICATIONS: Widens 1Q03 Net Loss to P1.5B
MANILA ELECTRIC: Implements Unbundling Discounts For Small Users
MANILA ELECTRIC: Refutes Congressman Beltran's Claim
MANILA ELECTRIC: Submitting Second Phase Refund Proposal June 16
S I N G A P O R E
ASIA PULP: Creditors Agree on Debt Payment
HUA KOK: Unit Appoints Receivers and Managers
PAN-UNITED: Unit Enters Voluntary Liquidation
THAKRAL CORPORATION: Posts Notice of Shareholder's Interest
VAN DER HORST: Appoints New Company Secretary
T H A I L A N D
MEDIA OF MEDIAS: Posts Audit Committee Members, Scope of Duty
PICNIC GAS: SET Halts Securities Trading
TANAYONG PUBLIC: Reports Business Reorganization Progress
* S&P Takes Various Rating Actions on Thai Banks
- - - - - - - -
=================
A U S T R A L I A
=================
ACMA ENGINEERING: Posts Final Share Buy-Back Notice
---------------------------------------------------
Acma Engineering & Construction Group Limited posted this
notice:
APPENDIX 3F
FINAL SHARE BUY-BACK NOTICE
(EXCEPT MINIMUM HOLDING BUY-BACK)
Name of Entity
Acma Engineering & Construction Group Limited
ACN or ARBN
41 002 737 733
We (the entity) give ASX the following information.
DESCRIPTION OF BUY-BACK
1. Type of buy-back Selective Buy-Back
DETAILS OF ALL SHARES BOUGHT BACK
2. Number of shares bought back 10,000,000
3. Total consideration paid or
payable for the shares
(A) The Company will transfer to Clifton Pastoral Pty Limited
(1/3) of all issued shares in the capital of National
Engineering (Developments) Pty Limited (Being a total of 33,333
A Class, B Class and C Class Shares);
(B) The Company will cause its wholly owned subsidiary,
Datamatic DP Pty Limited, to transfer (1/3) of the units in the
National Engineering Unit trust to Clifton Pastoral Pty Limited
(Being 333 units) and
(C) The Company will cause its wholly owned subsidiary, National
Engineering Pty Limited, which is trustee of the National
Engineering Unit trust, to issue one ordinary share to Clifton.
4. If buy-back is an on-market
buy-back:
- highest and lowest price
paid
Highest price: $N/A
Date:
Lowest price: $N/A
Date:
COMPLIANCE STATEMENT
1. The company is in compliance with all Corporations Law
requirements relevant to this buy-back.
2. There is no information that the listing rules require to be
disclosed that has not already been disclosed, or is not
contained in, or attached to, this form.
EARTH SANCTUARIES: Posts John Wamsley's Comments in Manly Daily
---------------------------------------------------------------
Earth Sanctuaries Limited posted the comments from Dr John
Wamsley, which appeared in the Manly Daily
"Earth Sanctuaries Ltd founder Dr Wamsley, who received the
Prime Minister's award as Environmentalist of the Year on
Saturday, said it (Waratah Park) would cost about $1 million to
get the sanctuary up and running. He said a feral animal-proof
fence would be built around the 12ha park and any feral animals
within the park would be eradicated. Existing cages in the park
would be removed and a walkway would be constructed so park
visitors would have access but not disturb the animals, he said.
The ranger's office building - made famous in the Skippy TV
series - would be kept as part of the public area, he said.
"We will change it from a day-time to a sunset operation, which
is when most native animals are active", he said. "The whole
process is about convincing people that the best thing they can
do for Australian wildlife is to buy shares in ESL. We're set up
as a business but not to make a profit. Businesses are outcome
oriented and charities are process oriented but ours is a
conservation- oriented outcome.
"We want local people to think of it as their sanctuary". Dr
Wamsley said an open day would be held at Waratah Park on June
14 to 15 from 11:00 am - 4:00 pm.
According to Wrights Investors' Service, at the end of 2002,
Earth Essence had negative working capital, as current
liabilities were A$5.60 million while total current assets were
only A$5.43 million. The company has paid no dividends during
previous 2 fiscal years and reported losses during the previous
12 months.
MAYNE GROUP: Acquires Gippsland Pathology Service
-------------------------------------------------
Mayne announced last week that it will acquire the remaining 68
per cent shareholding in Gippsland Pathology Service (GPS) for
$14.0 million. Mayne has held a 32 per cent stake in GPS since
June 2000 and will acquire the remaining interest through the
exercise of an option that was granted at that time and was
exercisable in the period 1 April to 30 June 2003. It is
expected to complete on 1 July 2003.
GPS has a turnover in excess of $20 million a year and provides
services throughout the Gippsland region in Victoria with six
laboratories. GPS also has contracts to service a number of
public hospitals in the region.
The acquisition complements Mayne's existing pathology business
in Victoria and provides the opportunity to reduce costs by
leveraging the group's existing infrastructure. The acquisition
will be immediately accretive to earnings per share.
CONTACT INFORMATION: Cameron Fuller
Ph: 03 9868 0968
Mb: 0417 338 953
MIM HOLDINGS: Requests Trading Halt
-----------------------------------
The securities of MIM Holdings Limited will be placed in pre-
open at the request of the Company, pending the release of the
results of the shareholders meeting held on Friday, at which the
scheme of arrangement proposed by Xstrata Holdings Pty Limited
is being considered.
Unless ASX decides otherwise, the securities will remain in pre-
open until the earlier of the commencement of normal trading on
Wednesday, 11 June 2003 or when the announcement is released to
the market.
MIM HOLDINGS: Shareholders OK Xstrata Scheme of Arrangement
-----------------------------------------------------------
MIM Holdings Limited (MIM) shareholders approved on Friday a
Scheme of Arrangement under which Xstrata Plc (Xstrata) would
acquire all of the shares in MIM for $1.72 cash per share. The
Scheme of Arrangement remains subject to satisfaction of certain
conditions precedent and the exercise of the discretion of the
Supreme Court of Queensland to approve the Scheme. The Courts
approval is expected to be sought on 12 June, 2003.
If the Scheme is approved by the Court, Xstrata will acquire all
of MIMs shares. Shareholders will receive $1.72 per MIM share,
which will be paid on the sixth business day following approval
of the scheme by the Court.
The resolution approving the Scheme of Arrangement was duly
passed by a majority of 89.1% of shares voted and 58.5% of the
shareholders who voted. Particulars of the voting were:
PROXIES LODGED NUMBER OF PROXIES NUMBER OF VOTES
Votes for 22,216 1,250,177,837
Votes against 15,893 155,611,038
Abstentions 165 2,792,942
Proxys discretion 887 5,812,857
TOTAL VOTES CAST NUMBER OF SHAREHOLDERS NUMBER OF VOTES
In favor 22,588 1,299,056,620
Against 15,971 158,176,225
Abstentions 165 2,792,942
For more information visit its website: www.mim.com.au
CONTACT INFORMATION: Allan Ryan
Principal Adviser Investor Relations
Bus: +61 (0)7 3833 8295
Mobile: +61 (0) 419 781 380
OPEN TELECOMMUNICATIONS: AGM to be Held on June 30
--------------------------------------------------
Notice is given that the annual general meeting of the members
of Open Telecommunications Limited will be held at the
Harbourview Hotel, 17 Blue Street North Sydney on 30 June 2003
at 11:00 in the morning.
The business of the meeting is:
ORDINARY BUSINESS
1. FINANCIAL STATEMENTS AND REPORTS
To receive and consider the annual financial report, directors'
report and the auditor's report of the Company for the year
ended 31 December 2002.
2. DIRECTORS
To consider, and if thought fit, to pass the following
resolution:
That Terry Cuthbertson be re-elected as a director the Company
in accordance with rule 6.1(c) of the constitution. Terry
Cuthbertson is a director retiring by rotation in accordance
with rule 6.1(f)(ii) of the constitution and is eligible for re-
election.
A full copy of Notice, including Explanatory Memorandum, can be
found at http://bankrupt.com/misc/TCRAP_OTT0610.pdf.
ORBITAL ENGINE: $6M Capital Raising Successful
----------------------------------------------
Orbital Engine Corporation Limited advises that it has
successfully raised $2.8 million through a placement of
approximately 23.3 million shares at an issue price of $0.12 per
share. The Company will also make an offer via a Share Purchase
Plan so that all its shareholders resident in Australia and New
Zealand are entitled to purchase up to $5,000 worth of ordinary
shares in the Company at the placement price. United States
shareholders and those resident in other foreign jurisdictions
will not be entitled to participate in the Share Purchase Plan.
Paterson Ord Minnett Ltd acted as Lead Manager to the share
placement, which was well supported by existing shareholders and
new investors. The Share Purchase Plan of $3.2 million has also
been underwritten by Paterson Ord Minnett Ltd.
The purpose of the capital raising is to augment Orbital's now
relatively stable cash reserves in order to demonstrate to
customers a higher level of financial independence and security.
In line with the Company's announcement to the market in
February 2003, it is forecast that the Company's cash at 30 June
2003, excluding the proceeds of the capital raising, will be
approximately $6 million. The Company anticipates a break-even
result for the half-year ending 30 June 2003. With the addition
of the proceeds of the capital raising, this improved cash
position will engender increased customer confidence and the
Company will be better placed to bid and win major programs
of work.
Orbital is pleased with the response to the placement. It
demonstrates strong support for the company's strategies and
emergence as a profitable business. The Company is also pleased
to provide shareholders with an opportunity to participate in
the capital raising through the Share Purchase Plan.
The Share Purchase Plan will enable all Orbital shareholders in
Australia and New Zealand to purchase up to $5,000 worth of
ordinary shares in Orbital (ranking equally with existing fully
paid shares) at the placement price of A$0.12 per share, without
incurring brokerage or other transaction costs. In the event of
shareholder demand in excess of the pool of stock available for
the SPP (currently being approximately 26.7 million shares),
Orbital may elect to accept additional SPP applications.
Eligible shareholders who are registered as at 5:00pm (Perth
time) on Wednesday 18 June 2003 will be entitled to participate
in the Share Purchase Plan. A letter, which sets out the offer
under the Share Purchase Plan will be sent to all eligible
shareholders shortly after that date.
ORBITAL ENGINE: Requests Trading Halt
-------------------------------------
The securities of Orbital Engine Corporation Limited will be
placed in pre-open at the request of the Company, pending the
release of an announcement by the Company.
Unless ASX decides otherwise, the securities will remain in pre-
open until the earlier of the commencement of normal trading on
Wednesday, 11 June 2003 or when the announcement is released to
the market.
SNOWBALL GROUP: Undergoes $1.3M Capital Raising
-----------------------------------------------
Snowball Group Limited on Friday announced, subject to the
satisfaction of certain conditions precedent:
* A $1.3million capital raising comprising:
- a $0.75m underwritten renounceable rights issue at $0.20
per share; and
- a $0.55m placement of new ordinary shares at $0.20 per
share.
* An unwinding of the Call Option Deed arrangements between
Equity Partners Two Pty Limited (Equity Partners) and certain
shareholders (Grantors) in respect of 20.6m ordinary shares and
4.1m options (Grantors' Pool). These call options were in
respect of various shareholders who invested in the Snowball
business prior to its listing. Under the unwinding arrangements
Equity Partners will offer to acquire 40% of the Grantors' Pool
from the Grantors, a transaction which would increase Equity
Partners' holding in the ordinary voting shares on issue from
13.9% to 33.1% following completion of the capital raising and
assuming no shortfall under the Rights Issue.
$1.3M CAPITAL RAISING
Purpose: The purpose of the capital raising is to provide
additional working capital and strengthen the balance sheet to
enable the Company to accelerate achieving its objectives of
profitability, scale and critical mass on sensible commercial
terms by capturing major new business opportunities and
acquiring and/or merging with a third party(s).
Rights Issue: The $0.75m rights issue at $0.20 per share is
renounceable on the basis of one new share for every nine shares
held and is fully underwritten by Equity Partners for no fee.
The underwriting is subject to a number of conditions,
including: (i) the Grantors holding at least 90% (or such lower
percentage agreed by Equity Partners) of the Grantors Pool
agreeing to transfer 40% of those securities to Equity Partners
in return for the unwinding of the Call Option Deeds which
currently apply to 75% of the Grantors Pool; and (ii) the
subsequent approval by SNO shareholders, at a general meeting of
shareholders, of the purchase by Equity Partners of those
securities. The proposed transfer of shares by Grantors to
Equity Partners under the proposal to unwind the Call Option
Deed arrangements will not affect the rights of the Grantors to
take up their full entitlements in the proposed rights issue.
Placement: The $0.55m placement is subject to completion of the
Rights Issue. Subscribers to the placement include: Trent
Capital Limited, a company associated with Mr. Andrew Brown;
Andover Group Pty Limited, a company associated with Mr. Jeremy
Ingall; and a company associated with Mr. John McIntosh.
SHAREHOLDING RESTRUCTURE - UNWINDING OF THE CALL OPTION DEED
ARRANGEMENTS
Background: In February 2001 and prior to the listing of the
Snowball business on Australian Stock Exchange Limited, Equity
Partners invested in the Snowball business by subscribing $5.0m
for preference shares which carried entitlements that
effectively adjusted Equity Partners entry price in certain
circumstances according to investment outcomes achieved. In
preparation for the listing of Snowballs business, Equity
Partners agreed to the conversion of their preference shares
into ordinary shares (which now represent 13.9% of the issued
ordinary shares) in return for a new arrangement encompassed in
the Call Option Deeds. The Call Option Deeds were executed in
December 2001 between Equity Partners and the Grantors in
respect of 20.6m ordinary shares and 4.1m options held by the
Grantors. The Call Option Deeds were intended to preserve for
Equity Partners the underlying benefits of the original
preference shares and provide Equity Partners an ability to
exercise these call options in various circumstances up to and
until June 2004. The Call Option Deeds originally applied to
100% of the Grantors Pool; on 10 May 2003 this fell to 75% of
the Grantors Pool; on 10 May 2004 this is due to fall to 50% of
the Grantors Pool.
The Board is of the view that the Call Option Deed arrangements
may restrict the Company's ability to prosecute its business
plan
through, among other things, raising capital and/or pursuing
acquisition and/or merger opportunities.
The Proposal: In these circumstances and following discussions
with the Company and its advisers, Equity Partners has offered
to unwind the Call Option Deed arrangements by offering to
purchase 40% of the Grantors Pool now. This compares to Equity
Partners current entitlement to exercise options over 75% of the
Grantors Pool if an exercise-triggering event (such as a new
issue of shares to make an acquisition or a takeover of the
Company) occurred between now and 10 May 2004.
Subject to 90% of the Grantors accepting this proposal and
subsequent shareholder approval and following completion of the
Rights Issue and Placement, Equity Partners interest in the
ordinary voting shares on issue will increase from 13.9% to
between 33.1% (assuming a 0% shortfall under the Rights Issue)
and 40.1% (assuming a 100% shortfall under the Rights Issue).
Equity Partners Shareholding Stand-Still: Equity Partners has
formally stated that until 1 June 2004 Equity Partners will not
sell Snowball shares except if a sale occurs: (i) pursuant to
accepting a takeover bid; (ii) pursuant to shareholder approval;
or (iii) to an institution(s) provided that the sale(s) are for
shares worth at least $100,000 to each such institutional
purchaser, and that the price of those sales is at least 95% of
the weighted average share price for the preceding 5 trading
days.
Commitment: Equity Partners has indicated to the Board that it
is committed to the future of the Company, to the execution of
its current business plan and to the strategic initiatives
outlined below. The unwinding of the Call Option Deed
arrangements is technically a matter between the Grantors and
Equity Partners. It is important to note, however, that
completion of this shareholding restructure is a condition
precedent to the underwriting of the Rights Issue, completion of
which is a condition precedent to the Placement.
BOARD CHANGES
The Executive Chairman of the Company, Mr Philip Kelly, has also
advised the Board that he intends to step down as Chairman once
the proposed funding is committed as described above, and to
conclude his executive role with Snowball at the end of June. Mr
Kelly does intend to remain as a non-executive director for the
time being.
The Board has resolved to appoint Mr Peter Johnson to the Board
upon satisfaction of the condition of the underwriting as
described above, namely that the Grantors holding at least 90%
(or such lower percentage agreed by Equity Partners) of the
Grantors Pool agree to transfer 40% of those securities to
Equity Partners in return for the unwinding of the Call Option
Deeds. Mr Johnson, B Com (Hons), is a co-founder and Joint
Managing Director of Equity Partners. Mr Johnson has been
actively involved in the venture capital industry since 1987
and prior to that worked in the merchant banking field for nine
years in Sydney and London.
TRADING UPDATE
The Company continues to perform well operationally in difficult
market conditions, particularly for the financial planning
industry, controlling costs tightly while still pursuing its
growth strategy. A major corporate account has recently been won
and management is pleased with the current pipeline of
prospective new business opportunities.
Current indications regarding revenues, however, remain
consistent with the statement included in the recent Appendix 4C
announcement to the effect that whilst revenues are expected to
increase in the June 2003 quarter, achieving cash flow positive
trading by the end of June 2003 is very unlikely. There is
always the risk of deterioration in the equities markets.
Accordingly, the Board considers it prudent to proceed with the
$1.3m capital raising notwithstanding the continuing strong
operational performance.
STRATEGIC INITIATIVES
As previously announced, Snowball is firmly committed to
pursuing acquisition or merger opportunities on acceptable terms
that would have the effect of accelerating the Company's
progress to achieving profitability. In this regard, discussions
with potential strategic partners are continuing.
MANAGEMENT AND STAFF OPTION GRANT
The Board and its Remuneration Committee intend to review
Company remuneration and incentive arrangements. Equity Partners
has already indicated that if the Board resolves to do so, then
it would support the grant of up to 5.0million 5 year options
exercisable at $0.285 each, to key management and staff on a
basis to be determined by the Board, which would include
appropriate vesting/exercise provisions.
Further details regarding this matter will be advised to
shareholders once the Board has finalized the relevant details.
To the extent that any of these options are proposed to be
issued to Directors, then that will be a matter for specific
approval by shareholders, and will be considered by shareholders
along with the unwinding of the Call Option Deed arrangements.
TIMETABLE
A Letter of Offer from Equity Partners to the Grantors will be
dispatched within the next few business days. A Notice of
Meeting relating to the proposed acquisition of shares and
options by Equity Partners and any option grants requiring
approval will be dispatched to shareholders as soon as the usual
documentation, including an independents expert report, is
prepared. A further announcement regarding the timetable for the
Meeting, and the rights issue, will be made shortly.
TELEVISION & MEDIA: Issues Ordinary Shares
------------------------------------------
Television & Media Services Limited wishes to announce the issue
of 217,633,391 fully paid ordinary shares to TMS shareholders
who accepted the renounceable rights issue offer in accordance
with Appendix 3B released on 15 April 2003.
These shares have been allotted on Friday, 6 June 2003, in
addition to those allotted and announced on 2 May 2003, bringing
the total number of issued shares to 955,506,383.
================================
C H I N A & H O N G K O N G
================================
AES CHINA: S&P Rates Note Issue Due 2010 'B+'; Stable Outlook
-------------------------------------------------------------
Standard & Poor's Ratings Services said Friday that it had
assigned its 'B+' issue rating to a proposed issue by AES China
Generating Co. Ltd. (AES Chigen) of up to US$200 million in
senior unsecured notes due 2010. The proceeds will be used to
refinance an existing issue of US$180 million in senior notes
due 2006. At the same time, Standard & Poor's affirmed its 'B+'
corporate credit rating on AES Chigen. The outlook on the
corporate credit rating is stable.
AES Chigen, a wholly owned subsidiary of AES Corp., is an
independent power generation company, which owns equity
interests ranging from 25% to 70% in seven joint venture
electric power generation projects in mainland China. AES Chigen
has an aggregate nameplate capacity of 2,839 megawatts (MW), of
which 909MW is attributable to the company's equity interest in
its joint venture projects. The projects are located in six
provinces, and range in capacity from 26MW to 2,100MW. As a
holding company, AES Chigen's obligations are effectively
subordinated to the obligations of the joint ventures.
The ratings on AES Chigen reflect uncertainties about power
industry reforms in mainland China, the relative weakness of the
parent company, and refinancing risk. The proposed issue will
not be amortized but instead redeemed by a single repayment in
2010, which will expose the company to some refinancing risk. In
addition, the covenants governing the existing US$180 million
issue will be substantially relaxed, thereby removing most of
the cash trap mechanisms and giving the company greater
flexibility to return cash through dividends to AES Corp.
Liquidity may become tighter over the next few years as the
company relies more on cash contributions from projects. Ongoing
power industry reforms in mainland China remain a key concern,
although Standard & Poor's expects the implementation of a power
pool system to be a gradual process.
These concerns are somewhat mitigated by the company's sound
operating performance, improving cash flows, and strong growth
in demand for power in mainland China. The company has adequate
debt service coverage, with a projected minimum fixed charge
coverage ratio of 1.7x over the next three years.
CHAMPION LIGHT: Winding Up Petition Set on Wednesday
----------------------------------------------------
Champion Light Industries Limited is facing a winding up
petition, which is slated to be heard before the High Court of
Hong Kong on June 11, 2003 at 9:30 in the morning.
The petition was filed on April 8, 2003 by Lin Roscher of Room
906, No. 289 Sung Kiang Road, Taipei, R.O.C. and Yoel Neman,
Leon Neman, John Neman all of 1525, S Broadway, Los Angeles, CA
90015-3030, U.S.A.
DISTRIBUTION I: Winding Up Hearing Scheduled
--------------------------------------------
The High Court of Hong Kong will hear on June 18, 2003 at 9:30
in the morning the petition seeking the winding up of
Distribution I Logistics Limited.
Leung Yiu Ming of Room 945, 9th Floor, Hing Fai House, Tai Hing
Estate, Tuen Mun, New Territories, Hong Kong filed the petition
on April 28, 2003. Tam Lee Po Lin, Nina represents the
petitioner.
Creditors and other interested parties are encouraged to attend
the hearing. They only need to notify in writing Tam Lee Po
Lin, Nina, which holds office on the 27th Floor, Queensway
Government Offices, 66 Queensway, Hong Kong.
INTERHATS IMEX: Winding Up Petition Slated for Hearing
----------------------------------------
The petition to wind up Interhats Imex (H.K.) Limited is
scheduled for hearing before the High Court of Hong Kong on June
24, 2003 at 9:30 in the morning.
The petition was filed with the court on May 7, 2003 by Ho Yuk
Mui Tracy of G/F., Siu Hang Tsuen, No. 154, Tuen Mun, New
Territories, Hong Kong.
PROASIA FOOD: Winding Up Hearing Set on June 18
-----------------------------------------------
The High Court of Hong Kong will hear on June 18, 2003 at 9:30
in the morning the petition seeking the winding up of Proasia
Food Products Limited.
Ho Yuen Tak of Room 3010, Yuet Wing House, Tin Yuet Estate, Tin
Shui Wai, Yuen Long, New Territories, Hong Kong filed the
petition on May 2, 2003. Tam Lee Po Lin, Nina represents the
petitioner.
Creditors and other interested parties are encouraged to attend
the hearing. They only need to notify in writing Tam Lee Po
Lin, Nina, which holds office on the 27th Floor, Queensway
Government Offices, 66 Queensway, Hong Kong.
SKYNET (INTL): Requests Trading Suspension
------------------------------------------
At the request of Skynet (International Group) Holdings Limited,
trading in its shares will be suspended with effect from 9:30
a.m. on Friday (9/6/2003) pending the release of an announcement
in relation to the result of the hearing of the winding up
petition.
SUN LING: Winding Up Sought by Fortis Bank
------------------------------------------
Fortis Bank Asia HK, formerly known as Generale Belgian Bank, is
seeking the winding up of Sun Ling Motors Co. Limited. The
petition was filed on April 28, 2003 and will be heard before
the High Court of Hong Kong on June 18, 2003.
Fortis Bank holds its registered office at 27th Floor, Fortis
Bank Tower, 77-79 Gloucester Road, Hong Kong.
VISION TECH: Narrows 2002 Net Loss to HK$24.519M
------------------------------------------------
Vision Tech International Holdings Limited posted its financial
results summary for the year end date March 31, 2002:
(Audited)
(Audited) Last
Current Corresponding
Period Period
from 1/4/2001 from 1/4/2000
to 31/3/2002 to 31/3/2001
Note ('000) ('000)
Turnover : 70,364 147,672
Profit/(Loss) from Operations : (15,420) (40,876)
Finance cost : (483) (6,658)
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (c) (45,357)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0883) (0.222)
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (24,519) (45,357)
Final Dividend : Nil Nil
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final Dividend : N/A
Payable Date : N/A
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
=================
I N D O N E S I A
=================
BANK INDOVER: Liquidated If Not Sold This Year, Says BI
-------------------------------------------------------
Bank Indonesia (BI) is going to liquidate Bank Indover to clear
the status of the BI-owned bank based in Holland if the bank is
not sold by the end of the year, Bisnis Indonesia reports citing
Rusli Simanjuntak, BI's Head Communication Bureau.
"BI's deadline is until the end of the year. If Bank Indover is
not sold, we will liquidate the bank," Simanjuntak said, adding
that BI was trying to offer the bank to several investors.
So far, Rusli didn't mention whether there were investors
enclosing bids to BI during the offering time. "We have offered
it to investor, but the bank has not been sold. If it remains so
until the end of the year, we will be forced to liquidate the
bank."
KIMIA FARMA: To Merge With Indofarma by Next Year
-------------------------------------------------
Publicly listed PT Kimia Farma and PT Indofarma are going to
merge in 2004 after the restructuring processes of the two state
enterprises were concluded, Bisnis Indonesia reported Monday.
According to Ferdinand Nainggolan, Deputy State Minister for
State Enterprises for Logistics and Tourism, the best option for
Kimia Farma and Indofarma after their divestments were delayed
was merger. "The merger aimed to strengthen the companies'
financial structure."
"When Indofarma and Kimia Farma are merged, one of them can
concentrate on generic medicine, while the other focuses on
other prescriptions drugs and other products. Therefore, the
merged company will be healthy and have strong financial
structure," Nainggolan said.
He also revealed that Indofarma's kind if restructuring scheme
is not determined yet. It could be either partial restructuring
in some subsidiaries or total restructuring.
"The restructuring mechanism of Indofarma will be known after
the shareholders general meeting (RUPS). To be sure, the
government will try to increase the value of nilai Indofarma
through the restructuring as the government has done with Kimia
Farma," Nainggolan explained.
PT DANAREKSA: Selling DJI Shares for US$6.5M
--------------------------------------------
PT Danareksa finally decided to sell its 45 percent shares of
Danareksa Jakarta International (DJI) to a Hong Kong Investor at
the price of US$6.5 million, Bisnis Indonesia reports.
"We and the Hong Kong Investor have agreed the transaction of
DJI shares at the price of US$6.5 million," a Director of
Danareksa's Director Evi Firmansyah said.
Danareksa sold the shares of DJI, a property company developing
and owning the Jakarta Stock Exchange Building, as it was not
the main business of the state owned security company.
Danareksa was committed to refocus its business on investment
banking so that the company decided to sell step by step
businesses outside this sector.
Today, Danareksa is focusing its business on investment banking,
equity capital market, debt capital market, investment
management and treasury. It also planned to stop its foreign
currency trading and its financing business.
Following its business restructuring, the liability of Danareksa
decreased by Rp1.2 trillion to Rp1.7 trillion, while its debt-
to-equity ratio improved from 7.2 times in 2001 to 2.68 times in
2002.
=========
J A P A N
=========
ALL NIPPON: Cancels Taipei Service Until August
-----------------------------------------------
All Nippon Airways (ANA) will continue with the following
previously announced changes to its international network until
August 31 this year:
Due to changing demand brought about by the severe acute
respiratory syndrome (SARS), and in a move to improve revenues,
from May 16 ANA added an extra five non-scheduled flights to the
nine already serving the high demand Tokyo (Narita)-Seoul route,
a Company statement said. This brought the total to 14 return
flights per week, or two per day.
From July 1 to August 31, these will become scheduled flights
operated by Air Japan aircraft and crew, using 214 or 216 seat
767-300ER aircraft. ANA service on the Tokyo-Taipei route will
be suspended until August 31. The suspension of daily flights
EL2103/2104* began on May 16.
*Code-share flights between Air Nippon and Eva Air
ALL NIPPON: Invites Staff to Take Unpaid Holiday
------------------------------------------------
All Nippon Airways Co. (ANA) will invite 30-50 employees to take
a month off without pay starting in August, as part of its cost
cutting scheme, Japan Times reports. The program will help the
airline reduce annual expenses by between 100 million yen and
200 million yen in the year to March 31.
Due to the slump in international travel, largely caused by the
severe acute respiratory syndrome (SARS) scare, All Nippon
Airways, along with another Japanese carrier, has asked the
Development Bank of Japan for financial aid similar to those
granted to U.S. counterparts, the Troubled Company Reporter-Asia
Pacific reported recently. The Financial Times says it is not
yet clear how much money the carriers are asking or in what form
the aid will be packaged.
AOYAMA TRADING: Moody's Changes Rating Outlook to Negative
----------------------------------------------------------
Moody's Investors Service has changed the outlook on the Baa3
senior unsecured long-term debt ratings and issuer ratings of
Aoyama Trading Co., Ltd. (Aoyama Trading) to stable from
negative. The change in outlook reflects Moody's expectation
that the Company's earnings and cash flow will stabilize,
despite weak consumer spending and intensified competition
within Japan's retail industry.
Over the last few years, the size of Aoyama Trading's main
market, men's suits, has been shrinking due to weak demand,
while prices have fallen, reflecting rising price competition.
However, within this environment, the Company has maintained its
leading position and exhibited strong merchandising abilities.
Its "The Suit Company" format has attracted younger-generation
consumers and will contribute to restoring overall earnings.
Aoyama Capital -- a wholly owned subsidiary engaged in the
credit card business -- is supporting Aoyama Trading's more
focused customer service and sales promotions through effective
analysis and utilization of customer data. Moody's expects the
Company to continue to avoid assuming any consumer credit risk
through the use of effective alliances with specialized consumer
finance companies.
Aoyama Trading's Baa3 ratings continue to reflect the fact that
its activities are highly concentrated in the men's suits
business. The Company also operates casual wear shops --
operating under the name of "Calaja" -- as part of efforts to
diversify its business line. However, Moody's estimates that it
will need more time to improve earnings in the casual wear
businesses. The rating also incorporates Moody's expectation
that Aoyama Trading will continue to maintain a reasonable
capital structure to manage its business risks against the
backdrop of a severe business environment.
Aoyama Trading Co., Ltd., headquartered in Hiroshima, is Japan's
largest men's suit specialty retailer. The Company operates the
"Yofuku no Aoyama" stores, "Calaja" stores, and "The Suit
Company" stores.
DAIEI INC.: Carrefour Eyes Tie-up With Retailer
-----------------------------------------------
Europe's top retailer Carrefour SA is in talks with ailing Daiei
Inc. for a business tie-up that could involve joint purchases of
products and joint operation of stores in Japan, the Asahi
Shimbun reports.
Carrefour's aim is to cut costs and gain a foothold into urban
areas, while Daiei hopes a more varied product line-up will
strengthen it's marketing. Daiei received a $4 billion bailout
from creditors last year and has been rehabilitating with
support from the government and banks including UFJ Holdings
Inc.
DAIEI INC.: Shares Up 6.45% After Carrefour Tie-Up Report
---------------------------------------------------------
Shares in Daiei Inc. increased 6.45 percent at 132 yen after the
Asahi newspaper reported on Sunday that the world's second-
biggest retailer Carrefour SA was seeking a tie-up with the
struggling Japanese retailer, according to Reuters.
Both firms declined to comment on the possible merger.
FUJITSU LIMITED: Unveils World's First Multi-Chip Package
---------------------------------------------------------
Fujitsu Limited announced the development of a new memory
product for next-generation mobile phones and other high-
performance mobile applications, the MB84SR6H5K5K1, a multi-chip
package (MCP) combining Mobile Fast Cycle RAM (FCRAM*1) and
burst mode (*2) flash memory. Fujitsu is shipping samples of the
new chip package starting on June 2, 2003.
The new multi-chip package includes one 128Mbit (Mb) NOR-type
flash memory and two 64Mb Mobile FCRAM chips compliant with the
Common Specification for Mobile RAM (COSMORAM*3). Both memory
units are capable of burst-mode operation at 66MHz, enabling
high-speed data access. Moreover, the new MCP is a low-voltage
device, requiring only 1.8V of power.
The product is designed especially for use in 3G mobile phones,
where the burst mode operation will deliver the high-speed data
transfer rates essential for sending and playback of streaming
viao and other multimedia functions.
Fujitsu plans to extend this line to suit diverse customer
needs, adding a model with 64Mb flash memory and 32Mb Mobile
FCRAM, and increasing burst frequencies to 80MHz and even
100MHz.
[Features]
1. Fast access times
- Adding burst-mode capabilities to both the flash memory and
Mobile FCRAM allows for faster read operations.
- Burst-mode access times are 11 ns for flash memory, 12ns for
Mobile FCRAM (at 66MHz).
- Asynchronous read/write operations also supported.
2. Low power consumption
- Operating on 1.8V power, the flash memory requires a maximum
of 10 microAmps (uA), the Mobile FCRAM a maximum of 120uA of
standby current.
- The Mobile FCRAM also includes a power-down mode that
dramatically reduces its power requirements (max 10uA).
3. Pin layout shared by all three COSMORAM-developing companies
- Support for the COSMORAM standard (including pin layouts)
simplifies board and connector design for customers.
[Main Specifications of the MB84SR6H5K5K1]
Packaging: 9 x 12 x 1.4 mm 115-pin FBGA
COSMORAM-compliant burst-MCP pin layout
[Flash memory] [Mobile FCRAM]
Density: 128Mb 64Mb (x 2)
I/O configuration: x16 x16
Operating voltage: 1.65 to 1.95V 1.65 to 1.95V
Operating temperature: -30 to +85C -30 to +85C
Burst frequency: 66MHz 66MHz
Burst access time (max): 11ns 12ns
Address access time (max): 56ns 70ns
Page access time (max): -- 20ns
Active current (max): 30mA 30mA
Standby current (max): 10uA 120 uA/chip
Power-down current (max): -- 10 uA/chip
Erase/rewrite cycles (min): 100,000 --
[Glossary]
*1. Mobile FCRAM (Fast Cycle RAM)
FCRAM is an advanced memory core design, proprietary to Fujitsu,
with low power consumption and fast operation. Mobile FCRAM is a
pseudo-SRAM technology that couples an FCRAM core to an SRAM
interface.
*2. Burst mode
A special mode of operation for memory enabling fast, continuous
reads synchronized to the system clock, so that a large amount
of information can be read in a large block, simply by
specifying one partial address. FCRAM adds the ability to
perform write operations in burst mode as well.
*3. Common Specification for Mobile RAM (COSMORAM)
A specification developed jointly by Fujitsu Limited, NEC
Electronics Corp. and Toshiba Corp., and announced on February
17, 2003. Refers to a standard for burst mode pseudo-SRAM chips
and MCPs containing these chips.
[Sample Pricing and Availability]
Product name: MB84SR6H5K5K1
Price: Y15,000 in Japan (excl tax)
Available: beginning June 2, 2003
Sales target: 1 million units/month
[Trademark notice]
FCRAM is a registered trademark of Fujitsu Limited
All other product names and company names mentioned herein are
the trademarks or registered trademarks of their respective
firms.
About Fujitsu Limited
Fujitsu 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
(TSE:6702) reported consolidated revenues of 4.6 trillion yen
(about US $38 billion) for the fiscal year ended March 31, 2003.
For further information, please visit the Fujitsu Limited home
page at: www.fujitsu.com/
Hit hard by the information technology (IT) slump, Fujitsu Ltd.
plans to change its capital structure to enable it to make ready
use of capital reserves of more than 330 billion yen should it
face a rapid deterioration in earnings, according to the
Troubled Company Reporter-Asia Pacific. In 2002, Fujitsu
suffered a net loss of 175 billion yen on a parent-only basis.
It expects to swing into the black with a net profit of 50
billion yen in the current fiscal year.
Contact:
Fujitsu Limited
Bob Pomeroy, Minoru Sekiguchi, Nancy Ikehara
pr@fujitsu.com
+81-3-3215-5259
NIKKO CORDIAL: Narrows FY02 Net Loss to Y18.94B
-----------------------------------------------
Nikko Cordial Corporation posted a group net loss of 18.94
billion yen in the year ending March 31 under U.S. accounting
rules, versus a group net loss of 59.64 billion yen the previous
year, Kyodo News said on Saturday. Net loss per share was 10.29
yen, compared with 32.37 yen the previous year.
TCR-AP reported that Nikko Cordial Corporation fell into the red
for the year ending March 31 due to a drop in brokerage and
underwriting commission fees resulting from a slump in stock
markets. The Company chalked up a group net loss of 36.36
billion yen ($286 million) in the three months ended March from
2.5 billion yen a year earlier.
NIPPON TELEGRAPH: Upgrades Fiber-Optic Communications
-----------------------------------------------------
Nippon Telegraph and Telephone Corp. (NTT) has developed a
technology that can transmit data via fiber-optic networks 10
times faster than current technology, Dow Jones reports. The
development reflects NTT's efforts to tap the growing domestic
broadband market for new revenue sources amid dwindling revenue
in its mainstay fixed-line phone operations.
The new technology will increase fiber-optic communications
speeds to one gigabit a second, from around 100 megabits a
second currently, according to a NTT spokesman. NTT hopes it
will have the technology ready for mass production within one to
two years. Commercialization of the technology is still
undecided.
Telephone operator Nippon Telegraph and Telephone Corporation
(NTT) is back in the black this year with a profit of 233
billion yen (US$2 billion), due to stringent cost cutting
measures and smaller investment losses, the Troubled Company
Reporter-Asia Pacific reported recently. NTT booked a net loss
of 835 billion yen a year earlier.
=========
K O R E A
=========
CHOHUNG BANK: Banks Face Overhaul After Failing to Perform
----------------------------------------------------------
At least four financial institutions that were bailed out with
public funds are facing a shakeup after they failed to meet
first-quarter earnings targets, JoongAng Daily reported
Saturday, citing the Korea Deposit Insurance Corporation (KDIC).
Last month, KDIC inspected 11 financial institutions to look at
returns on assets and capital adequacy ratios set by the
International Bank of Settlements.
The probes were being conducted at Woori Financial Group, Woori
Bank, Woori Investment Bank, Woori Credit Card Co., Kyongnam
Bank, Kwangju Bank, Chohung Bank, the National Federation of
Fisheries Cooperatives and Korea Investment Trust Management and
Securities Co. Checks were also made at Daehan Investment and
Securities Co. and Seoul Guarantee Insurance Company. They all
had entered non-binding treaties with the Korea Deposit
Insurance Corp. to revive their businesses to a specified level
in return for public bailout funds.
Korean Investment posted a loss of 5.9 billion won ($4.9
million) and Daehan Investment a loss of 46.8 billion won in the
first quarter of this year. Woori Card and Woori Investment Bank
failed to meet other conditions stipulated by their non-binding
agreements. Chohung Bank failed to meet its projected earnings,
although it posted a net profit of 62 billion won about three
times its earnings for the first quarter of last year.
KDIC said it would implement corrective measures for financial
institutions that failed to meet their earnings targets for two
consecutive quarters. These would include warnings, cutting
wages or firing executives. It could also demand staff cuts or
mergers with other institutions.
DebtTraders reports that Cho Hung Bank's 11.875% bond due in
2010 (CHOH10KRS2) trades between 113.5 and 114.5. For real-time
bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=CHOH10KRS2
SK GLOBAL: Outside Directors May Resign
---------------------------------------
A proposed bailout plan for SK Global, including the 850 billion
won debt-for-equity swap, will be approved without outside
directors, the Korea Times reports, citing SK Global's largest
shareholder SK Corporation. SK Corporation said on Sunday that
even if all its outside directors resign, the remaining insiders
could pass the bailout plan under the current Securities
Transaction Act. The oil refinery's outside directors came under
mounting pressure from shareholders and the labor union to
reject the rescue package suggesting that SK Corp. convert 850
billion won of its debt into SK Global shares.
Currently, SK Corp.'s board comprises five inside directors, SK
Corp. Chairman Chey Tae-won, SK Group Chairman Son Kil-seung, SK
Corp. President Kim Chang-geun, SK Corp. Vice-Chairman Hwang
Doo-yul and SK Corp. Executive Director Yoo Jeong-joon and five
outside directors, including Yonsei University professor Park
Heung-soo and SK outside auditor Park Ho-suh. Given that Chey is
unable to attend the board meeting since he is currently in
jail, at least two outside directors must attend the meeting to
approve the bailout plan.
If outside directors resign on fears of facing lawsuits, the
decision will be left in the hands of the five inside directors,
which analysts say are sure to pass the proposal.
SK GLOBAL: Sovereign Blames Creditors
-------------------------------------
Sovereign Asset Management on Sunday accused creditors of
undermining the credibility of South Korea's economy by trying
to bail out SK Global, the Financial Times reports. The Monaco-
based investment fund, which fights for improved corporate
governance in emerging markets, said banks must take
responsibility for their flawed decision to lend billions of
dollars to SK Global.
Last week, SK Corporation, the largest shareholder in SK Global,
provisionally agreed to contribute US$1.68 billion to bailout of
its troubled affiliate after coming under heavy pressure from
creditors. However, Sovereign, the largest shareholder in SK
Corporation, is fiercely opposed to the rescue.
===============
M A L A Y S I A
===============
CDL HOTELS: RAM Downgrades Bonds From P1(s) to P2(s)
----------------------------------------------------
Rating Agency Malaysia Berhad (RAM) has downgraded the enhanced
short-term rating for CDL Hotels (Malaysia) Sdn Bhd's (CDL) RM80
million Redeemable Underwritten Facility (RUF), from P1(s) to
P2(s). CDL is the owner of 5-star The Regent Kuala Lumpur on
Jalan Bukit Bintang. The enhanced rating reflects the
irrevocable and unconditional corporate guarantee extended by
Millennium & Copthorne Hotels Plc (M&C). The downgrade is
premised on the continued weakening of M&C's financial
performance and balance sheet. Being predominantly in the
hospitality business with a chain of hotels across the globe,
M&C has been hit by the spate of disruptive global events that
have unfolded over the past 1-2 years. Its turnover has trended
downwards from GBP691 million in FYE 31 December 2000 (FY 2000)
to GBP568 million in FY 2002, while pre-tax profit declined from
GBP129 million to GBP60 million over the same period. In
addition, M&C's operating cash flow debt coverage dwindled from
0.22 to 0.15 times.
The present geopolitical uncertainties and lacklustre US economy
are anticipated to further impinge upon M&C's performance. Both
the US and European markets have yet to recover to pre-2000
levels and are not anticipated to improve significantly.
Meanwhile Asian hotels currently bearing the brunt of the deadly
Severe Acute Respiratory Syndrome ("SARS") are unlikely to
rebound quickly in 3Q 2003 - the period when business usually
picks up. These factors are expected to chip away M&C's
profitability in FY 2003. In spite of this, however, RAM opines
that M&C should still be able to extend financial support to CDL
and redeem the RUF come its maturity in 2006.
In 2002, The Regent's average occupancy rate (AOR) continued to
inch up from 65% to 67% while average room rate (ARR) improved
from RM232 to RM255. As a result, turnover for CDL improved by
7% to RM57.9 million, leading to just over RM6 million in
operating profit before interest and taxation (OPBIT) - almost
double the previous year's RM3.4 million. Nonetheless, given the
challenging operating environment due to SARS, CDL is
anticipated to deliver a weaker performance this year.
Although CDL's operating cash flow is sufficient to service its
interest obligations and not for the full redemption of the RM80
million RUF, it should be able to rely on its shareholder, M&C,
for support. In addition, CDL's immediate holding company, ATOS
Holding AG (ATOS), has undertaken to subscribe for up to RM80
million Redeemable Cumulative Convertible Preference Shares
issued by the former. The proceeds will be used for the partial
or full redemption of the RUF in 2006.
On a separate note, CDL's rating was placed on Rating Watch with
a negative outlook on 2 May 2003, concurrent with RAM's blanket
Rating Watch on debt issues by hoteliers within its rating
portfolio. The Rating Watch is premised on the highly uncertain
ramifications of the virulent SARS, which has severely affected
the tourism sector following the recommendation by the World
Health Organization (WHO) in April to curb non-essential travel
to SARS-affected destinations. Following this, the hotel
industry's occupancy rate has been slashed to only 25% - 30% for
most players in April compared to 64% in the same month a year
ago. RAM will reassess the situation once the WHO has lifted
most travel advisories and the tourism sector attains some
semblance of normalcy.
CONTACT INFORMATION: Sharon Yee
03-7628 1033
sharon@ram.com.my
C.I. HOLDINGS: April Defaulted Interest Payment Hits RM5.753M
-------------------------------------------------------------
In compliance with Practice Note No. 1/2001, C.I. Holdings
Berhad wishes to announce the following with regards to the
status of the default in servicing the interest payment on the
RM198 million term loan facility granted by Alliance Bank
Malaysia Berhad (ABMB-TLF) to C.I. Enterprise Sdn Bhd (CIE), a
wholly-owned subsidiary since the Company's previous
announcement dated 6th May 2003.
CIE had defaulted in the servicing of interest payment, which
stood at RM5,753,735.73 as at 30th April 2003 compared to
RM4,270,604.34 as at 31st March 2003, an increase of
RM1,483,131.39 attributable to interest accrued for the month of
April 2003.
On 20th December 2002 the Company had announced its Proposed
Corporate Restructuring (PCR) which inter-alia include the
disposal of 300,000 ordinary shares of RM1.00 each representing
the entire equity interest in CIE to QSR Brands Sdn Bhd
(Formerly known as Good Platform Sdn Bhd) for a cash
consideration of RM1.00 and the assumption of the corporate
guarantee for the ABMB - TLF given by the Company to Alliance
Bank Malaysia Berhad (ABMB).
On 26th March 2003 the Company has submitted the PCR to the
relevant authorities for approvals together with the consents
obtained from various parties including ABMB. Upon completion of
the PCR, the ABMB-TLF will be fully settled.
The Company is currently awaiting all the necessary approvals
for the implementation of the PCR.
CSM CORPORATION: Inks Restructuring Agreement With Dutarama
-----------------------------------------------------------
Further to the announcement dated 2 June 2003, Malaysian
International Merchant Bankers Berhad (MIMB) wishes to announce
that on 3 June 2003, CSM Corporation Berhad had submitted a
letter to the Kuala Lumpur Stock Exchange (KLSE) to appeal
against the decision of the KLSE to remove the securities of CSM
from the Official List of the KLSE.
On behalf of CSM, MIMB is pleased to announce that on 5 June
2003, the following agreements have been entered into pursuant
to the proposed restructuring scheme of the Company:
(a) Restructuring Agreement between CSM and Dutarama Sdn Bhd
(Dutarama), a proposed new holding company to facilitate the
restructuring scheme of the Company and to assume the listing
status of CSM on the Main Board of the KLSE;
(b) Novation Agreements between CSM, Dutarama, Fairdex
Consolidated Sdn Bhd and Berjaya Group Berhad whereby CSM will
novate to Dutarama all its rights, powers, benefits, interests,
titles and entitlements pursuant to the Sale and Purchase
Agreements dated 24 January 2003 relating to the acquisition by
CSM of the entire equity interest in Speedy Viao Distributors
Sdn Bhd to Dutarama;
(c) Sale and Purchase Agreement between CSM and Dutarama for
the acquisition by Dutarama of the entire equity interest of CSM
Ventures Berhad;
(d) Memorandum of Understanding between Dutarama and
shareholders of Kembang Sejahtera Sdn Bhd (KSSB) for the
acquisition by Dutarama of the entire equity interest of KSSB;
(e) Sale and Purchase Agreement between Dutarama and
shareholder of Tranonova Line Sdn Bhd (TLSB) for the acquisition
by Dutarama of the entire equity interest of TLSB; and
(f) Sale and Purchase Agreement between Dutarama and
shareholder of Transprima Scale Sdn Bhd (TSSB) for the
acquisition by Dutarama of the entire equity interest of TSSB.
The details of the Proposed Restructuring Scheme are set out in
http://bankrupt.com/misc/TCRAP_CSM0610.doc.
ESPRIT GROUP: Appeals Against Securities De-Listing
---------------------------------------------------
Further to the announcement dated 2nd June, 2003, the Board of
Directors wishes to announce that Esprit Group Berhad has
entered into a Memorandum of Understanding (MOU) with Dato' Nik
Mohamed Din Bin Nik Yusoff, Encik Udani Bin Mohamed Daud, Mr.
Kuan Ah Hock and Mr. Tee Kian Chon (collectively known as the
White Knight) on 6th June, 2003 involving inter alia, the
following:
(i) Proposed incorporation of Newco to assume the listing
status of Esprit Group Berhad (EGB);
(ii) Proposed capital reduction and consolidation;
(iii) Proposed share swap;
(iv) Proposed Debt settlement;
(v) Proposed acquisition of target companies;
(vi) Waiver of general Offer;
(vii) Proposed disposal of EGB;
(viii) Proposed private placement, offer for sale and/or
public issue;
(ix) Transfer of listing status of EGB to Newco.
A definitive restructuring agreement is expected to be signed
within thirty (30) days from the date of this MOU. The details
of the above proposals shall be announced once the restructuring
agreement has been signed. The resulting scheme of arrangement
will enable the Company to regularize its financial condition.
In light of the new development, the Company has written to the
Kuala Lumpur Stock Exchange (Exchange) on 6th June, 2003 to
appeal against the decision of the Exchange in consultation with
the Securities Commission to de-list the securities of the
Company from the Official List of the Exchange on 16th June,
2003.
GLOBAL CARRIERS: Proposes Shareholders' Mandate; AoA Amendments
---------------------------------------------------------------
Notice is hereby given that an Extraordinary General Meeting of
Global Carriers Berhad will be held at Lumut 1 Room, 1st Floor,
Vistana Hotel, 9, Jalan Lumut, Off Jalan Ipoh, 50400 Kuala
Lumpur on Monday, 30 June 2003 immediately upon the conclusion
of the Eighth Annual General Meeting which has been scheduled to
be held at 9:00 a.m. on the same day for the purpose of
considering and if thought fit, passing the following
resolutions, with or without modifications:
ORINARY RESOLUTION
PROPOSED SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY
TRANSACTIONS OF A REVENUE OR TRADING NATURE
(i) THAT, subject to the provisions of the Listing Requirements
of Kuala Lumpur Stock Exchange, mandate be given to the Company
and its subsidiaries to enter into, with interested Directors or
interested Major Shareholders, Related Party Transactions
involving Recurrent Transactions of a revenue or trading nature
which are necessary for its day-to-day operations as set out in
Section 2.3 of the Circular to Shareholders dated 6 June 2003,
subject to the following:
(a) the transactions are in the ordinary course of business
and are on terms not more favorable to the Related
Parties than those generally available to the public;
(b) the Proposed Shareholders' Mandate is subject to annual
renewal and disclosure is made in the annual report of
the aggregate value of transactions conducted pursuant to
the Proposed Shareholders' Mandate during the financial
year;
(c) in a meeting to obtain the Proposed Shareholders'
Mandate, the interested Directors, interested Major
Shareholders and interested persons connected with the
Directors or Major Shareholders; and where it involves
the interest of an interested person connected with
Directors or Major Shareholders, such Directors or Major
Shareholders, must not vote on the resolutions approving
the transactions. The interested Directors or interested
Major Shareholders must also ensure that persons
connected with them abstain from voting on the resolution
approving the transactions; and
(d) the issuance of a Circular to Shareholders, which
includes information required by the Listing
Requirements.
(ii) That the Proposed Mandate is subject to annual renewal. In
this respect, any authority conferred by a mandate shall only
continue to be in force until:
a) the conclusion of the first annual general meeting of GCB
following the general meeting at which such Proposed Mandate was
passed, at which time it will lapse, unless by a resolution
passed at the meeting, the authority is renewed;
b) the expiration of the period within which the next annual
meeting after that date it is required to be held pursuant to
Section 143(1) of the Companies Act, 1965 (the Act) (but shall
not extend to such extension as may be allowed pursuant to
Section 143(2) of the Act); or
c) revoked or varied by resolution passed by the shareholders
in general meeting, whichever is the earlier.
(iii) THAT the Directors and/or any of them be and are hereby
authorized to complete and do all such acts and things
(including executing such documents as may be required) to give
effect to such transactions as authorized by this Ordinary
Resolution."
SPECIAL RESOLUTION
PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION (AoA)
"THAT the deletions, alterations, modifications and additions to
the Articles of Association of the Company as set out in Section
3 of this Circular to Shareholders dated 6 June 2003 be and are
hereby approved AND THAT the Directors be and are hereby
authorized to give effect to the said deletions, alterations,
modifications and additions to the Articles of Association of
the Company."
L&M CORPORATION: June 27 8th AGM Scheduled
-----------------------------------------
The Special Administrators of L & M Corporation (M) Bhd (Special
Administrators Appointed) wishes to announce that the Eighth
Annual General Meeting of the Company will be held on Friday,
27th June 2003 at 10:00 a.m. at Bilik Seroja, Kelab Golf
Perkhidmatan Awam, Bukit Kiara, Off Jalan Damansara, 60000 Kuala
Lumpur.
To see a copy of the AGM Notice, go to
http://bankrupt.com/misc/TCRAP_L&M0610.doc.
LONG HUAT: Credit Facilities Defaulted Status Remains Unchanged
---------------------------------------------------------------
Long Huat Group Berhad wishes to announce that on 2 June 2003, a
copy of the sealed High Court Order dated 5 May 2003 pertaining
to the restructuring exercise of the Company (including a
restraining order granted pursuant to Section 176 (10) of the
Companies Act, 1965) was made available to LHuat by its
solicitors, Messrs Kadir Andri Aidham & Partners.
Save for the above, the Company wishes to inform that there is
no material development pertaining to the default in respect of
the credit facilities granted to the Company and its
subsidiaries from its previous announcement on the said defaults
as contained in section 23 of the unaudited first quarter
results of the Company which was announced on 30 May 2003.
LONG HUAT: High Court Grants 90-Day Restraining Order
-----------------------------------------------------
Long Huat Group Berhad wishes to announce that on 2 June 2003, a
copy of the sealed High Court Order dated 5 May 2003 pertaining
to the restructuring exercise of the Company was made available
to LHuat by its solicitors, Messrs Kadir Andri Aidham &
Partners.
The Court Order comprises, inter alia, the following:
* Pursuant to Section 176 of the Companies Act, 1965 (Act),
separate meetings shall be convened in respect of the creditors
and shareholders of the Company for the purpose of considering
and approving the restructuring exercise of LHuat (Court
Convened Meetings);
* The Court Convened Meetings shall be held within 90 days
from the date of the Court Order (i.e. 5 May 2003);
* The Court Convened Meetings shall be summoned by giving not
less than 21 days notice thereof to the creditors and
shareholders of LHuat; and
* A Restraining Order be granted pursuant to Section 176 (10)
of the Act whereby all further proceedings in any action or
proceeding against the Company including, without derogating
from the generality of the foregoing, winding up, execution and
arbitration proceedings as well as any intended or future
proceedings, be for with restrained and stayed except by leave
of the High Court for a period of 90 days.
PERAK CORPORATION: Appoints Mahmud as Non-Exec Director
-------------------------------------------------------
Perak Corporation Berhad posted this Change in Boardroom Notice:
Date of change : 04/06/2003
Type of change : Appointment
Designation : Director
Directorate : Non Independent & Non Executive
Name : Tuan Haji Megat Dziauddin bin Megat Mahmud
Age : 57
Nationality : Malaysian
Qualifications :
He holds a Bachelor of Science (Economics) (Hons) from the
Queen's University of Belfast, a Fellow of the Institute of
Chartered Accountants in Ireland and a Chartered Accountant with
the Malaysian Institute of Accountants (MIA)
Working experience and occupation : He had previously served as
a Treasury Accountant in the Accountant-General's Department,
Finance Manager with Bank Simpanan Nasional and General Manager-
Investment with Arab-Malaysian Merchant Bank Berhad. He was an
Alternate Director to Dato' Abd Wahab bin Maskan in Perak
Corporation Berhad. He is also a Board Member of Golden Hope
Plantations Berhad and several of Golden Hope Group's
subsidiaries. Currently, he is the Group Director-Finance of
Golden Hope Plantations Berhad.
Directorship of public companies (if any) : Golden Hope
Plantations Berhad
Family relationship with any director and/or major shareholder
of the listed issuer : Nil
Details of any interest in the securities of the listed issuer
or its subsidiaries : Nil
On March 14, Troubled Company Reporter - Asia Pacific reported
that the Securities Commission (SC) has approved the Proposals,
which involve:
- Proposed private placement of 10,000,000 new ordinary
shares of RM1.00 each (share(s)) representing approximately
14.29% of the existing issued and paid-up share capital of PCB
at an issue price to be determined later (Proposed Private
Placement);
- Proposed transfer of the listing of and quotation for the
entire issued and paid-up share capital of PCB from the Second
Board to the Main Board of the Kuala Lumpur Stock Exchange
(KLSE) upon completion of the Proposed Private Placement
(Proposed Transfer); and
- Proposed bonus issue of 20,000,000 new shares on the basis
of one (1) new share for every four (4) existing shares held in
PCB after the Proposed Private Placement at a date to be
determined later (Proposed Bonus Issue).
RAHMAN HYDRAULIC: Extends Proposed Disposal Approval Period
-----------------------------------------------------------
Further to the announcement on 7 March 2003 in relation to the
Proposed disposal by the Company of the lease to operate a tin
mine with the right to enter, occupy and mine on a piece of land
measuring approximately 699.509 hectares in Klian Intan, Perak
Darul Ridzuan (Mining Right), together with separate freehold
land, leases and operating assets in relation to the tin mine
operations (Related Assets), to ZR Network Sdn Bhd (ZNSB) for a
total cash consideration of RM11,500,000 (Proposed Disposal).
Rahman Hydraulic Tin Berhad (Special Administrators Appointed)
wishes to announce that it has extended the approval period to
obtain all necessary approvals from the relevant authorities on
the Proposed Disposal to 31 July 2003, pursuant to Clause 4.1 of
the Sale and Purchase Agreement between RHTB and ZNSB.
RENONG BERHAD: Inks Proposed Acquisition SSA With Probadi
----------------------------------------------------------
Renong Berhad wishes to announce that it had on 28 May 2003
entered into a Sale of Shares Agreement (SSA) with Probadi Sdn
Bhd (Probadi), a wholly-owned subsidiary of Crest Petroleum Bhd
(Crest), in relation to the proposed acquisition of 500,000
ordinary shares in Renong Overseas Corporation Sdn Bhd (ROC) of
par value RM1.00 each, representing approximately 1.11% equity
interest in ROC for a nominal cash consideration of RM1.00.
DETAILS OF THE PROPOSED ACQUISITION
The proposed acquisition involves the acquisition of 500,000
shares in ROC (Sale Shares) by Renong from Probadi, representing
Probadi's entire shareholding in ROC.
The purchase price of RM1.00 (Purchase Price) to be paid to
Probadi was arrived at after taking into consideration the
audited net tangible assets (NTA) and the earnings of ROC, which
were both negative as at 30 June 2001.
Pursuant to the SSA, the Purchase Price shall be paid in full by
Renong to Probadi within (30) days from the date signing of the
SSA or on the Business Day immediately following the date of
fulfillment of the conditions precedent mentioned in Clause 4.1
of the SSA, whichever is the later.
Renong will finance the proposed acquisition from its internal
funds.
The Sale Shares will be acquired free from all liens, charges,
mortgages, options, claims and other encumbrances whatsoever
with all rights attached thereto.
CONDITIONS OF THE PROPOSED ACQUISITION
The proposed acquisition is conditional upon the approvals being
obtained from the relevant authorities (if applicable) within
thirty (30) days from the date of the SSA.
The proposed acquisition does not require the approval of
Renong's shareholders as the relevant percentage ratios under
the Listing Requirements of Kuala Lumpur Stock Exchange ("KLSE")
are below 5%.
INFORMATION ON ROC
ROC was incorporated in Malaysia under the Companies Act 1965 on
25 May 1992 as a private limited company. Presently, the total
issued and paid-up share capital of ROC is RM45,000,007
comprising 45,000,007 ordinary shares of RM1.00 each. ROC is
currently a 98.89% owned subsidiary of Renong.
ROC is principally an investment holding company whose
activities include the provision of reimbursable support
services to the Renong Group in respect of overseas project and
management fees received from related company.
The subsidiaries of ROC are engaged in investment holding,
acquisition and development of land and representation of
holding company in South Africa.
The relevant financial information of ROC is appended in Table 1
at http://bankrupt.com/misc/TCRAP_Renong0610.pdf.
INFORMATION ON PROBADI
Probadi was incorporated in Malaysia under the Companies Act
1965, a private limited company on 15 March 1991. Probadi is an
investment holding company and is a wholly-owned subsidiary of
Crest.
Presently, Probadi has an issued and fully paid-up share capital
of RM86,400,000 comprising 86,400,000 ordinary shares of RM1.00
each.
PROSPECTS FOR ROC AND RISK FACTORS
ROC, via its 80.4% subsidiary of Rocpoint Pty Ltd is involved in
a property development project in Durban, South Africa.
ROC is subject to the inherent risk existing in the property and
construction sectors. These risks include, inter-alia,
competition, and supply of materials, changes in general
economics and business conditions and changes in government
legislation.
FINANCIAL EFFECTS OF THE PROPOSED ACQUISITION
Share capital and major shareholding
The proposed acquisition will not have any effect on the share
capital of Renong and major shareholders' shareholding in
Renong.
Earnings
The proposed acquisition will not have any material impact on
the earnings of Renong for the financial year ending 31 December
2003.
NTA
The effect of the proposed acquisition on the NTA of Renong is
negligible.
RATIONALE FOR THE PROPOSED ACQUISITION
Renong currently owns 44,500,007 shares representing 98.89%
equity interest in ROC. Renong intends to acquire the remaining
shares in ROC from Probadi in order to make ROC a wholly-owned
subsidiary for ease of administration, and to enable Renong to
have full control of ROC to chart its future direction.
DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
Ahmad Pardas Senin resigned from the Board of Renong on 12
August 2002. Ahmad Pardas Senin is a director of Crest.
Save as disclosed above, and as far as the Directors are aware,
none of the other Directors or major shareholders of Renong or
persons connected to them has any interest, direct or indirect,
in the Proposed Acquisition.
DIRECTORS' STATEMENT
After due consideration of all aspects of the Proposed
Acquisition, the Board of Directors of Renong is of the opinion
that the proposed acquisition is in the best interest of Renong.
To the best of the knowledge of the Board of Directors of
Renong, the proposed acquisition has not departed from any of
the requirements of the Securities Commissions Policies and
Guidelines on Issues/Offer of Securities.
DOCUMENTS FOR INSPECTION
The SSA will be made available for inspection at the Company's
registered office at 2nd Floor, Bangunan MCOBA, 42 Jalan Syed
Putra, 50460 Kuala Lumpur during normal office hours from
Mondays to Fridays (except for public holidays) for a period of
three (3) months from the date of this announcement.
TAP RESOURCES: SC Extends Proposals Implementation Deadline
-----------------------------------------------------------
TAP Resources Berhad refers to the letter from the Securities
Commission (SC) dated 23 December 2002 in relation to the
approval of the SC for the Proposals comprising Proposed Debt
Restructuring, Proposed Profit Guarantee Waiver And Proposed
Rights Issue.
Malaysian International Merchant Bankers Berhad, on behalf of
the Company, wishes to announce that an application for
extension of time has been submitted to the SC on 5 June 2003 to
extend the deadline from 22 June 2003 to 31 October 2003 to
complete the implementation of the Proposals.
TAP will make the requisite announcement to the Kuala Lumpur
Stock Exchange upon obtaining a decision from the SC.
TECHNO ASIA: 34th AGM Fixed on June 25
-------------------------------------
Notice is hereby given that the Thirty Fourth Annual General
Meeting of Techno Asia Holdings Bhd. (Special Administrators
Appointed) will be held at the Perdana II Function Room (9th
Floor), Hotel Grand Continental, Jalan Dato' Abdullah
Tahir/Jalan Tebrau, 80300 Johor Bahru on Wednesday, 25 June,
2003 at 11:00 a.m. for the following purposes:
AGENDA ORDINARY BUSINESS
1. To receive and adopt the Audited Financial Statements for the
year ended 31 December, 2002 together with the Directors' and
Auditors' Reports thereon. RESOLUTION 1
2. To re-elect Lee Ai Cheen who retires in accordance with
Article 90 of the Company's Articles of Association and being
eligible, offers herself for re-election. RESOLUTION 2
3. To re-elect the following Directors who retire by rotation in
accordance with Article 96 of the Company's Articles of
Association and being eligible, offer themselves for re-
election:
i. Tuan Haji Muhadzir Bin Mohd. Isa RESOLUTION 3
ii. Chye Kit Choong RESOLUTION 4
iii. Lee Sieng Meng RESOLUTION 5
4. To re-appoint Messrs KPMG as Auditors of the Company and to
authorize the Directors to fix their remuneration. RESOLUTION 6
5. To transact any other business of which due notice shall have
been given.
UTUSAN MELAYU: Obtains SC's Nod on Proposals
--------------------------------------------
Utusan Melayu (Malaysia) Berhad (Utusan) refers to its
announcement dated 9 April 2003 with regard to the approval of
the Underwriters of RM110.0 million (Reduced to Rm105.0 million)
Revolving Underwriting Facility to extend the Facility for a
further period of three (3) years from 10 April 2003 to 10 April
2006 and for a reduced amount of RM100.0 million (the Proposal).
Utusan Melayu is pleased to announce that the Securities
Commission (SC) had via its letter dated 30 May 2003 addressed
to Affin Discount Berhad (ADB), a copy of which was received on
6 June 2003, approved the Proposal.
The approval of the SC to the above-mentioned Proposal was
subject to inter-alia, the following conditions:
1. all relevant documentation pertaining to the Proposal to
be perfected within one (1) month from the SC's approval
date;
2. a certified true copy of the perfected Supplemental Trust
Deed to be submitted to the SC by ADB within seven (7)
days from the date of the perfection;
3. full disclosure of the plan by Utusan to redeem the
Facility to be made to the underwriters/noteholders; and
4. ADB is required to submit a written confirmation on the
compliance of all the terms and conditions of the approval
to the SC.
YCS CORPORATION: Faces Writ of Summons Filed by AmFinance
----------------------------------------------------------
YCS Corporation Berhad wishes to announce that one of its
subsidiary companies, Puncak Kayan Sdn Bhd (PKSB) has on 4th
June 2003 been served a writ of summons dated 7th May 2003 and a
statement of claim dated 5th May 2003.
The Plaintiff is AmFinance Berhad. The Defendants are PKSB and
YCS Corporation Berhad.
The statement of claim include:
(a) Outstanding indebtedness of RM 2,144,661.38.
(b) Default interest of 1%p.a. over the prescribed rate of
9.95% p.a. on the RM 2,144,661.38 calculated on a daily
basis from 14th September 2002 until full settlement.
=====================
P H I L I P P I N E S
=====================
BAYAN TELECOMMUNICATIONS: Widens 1Q03 Net Loss to P1.5B
-------------------------------------------------------
Bayan Telecommunications (Bayantel) increased its first quarter
net loss by 56 percent to 1.5 billion pesos ($29 million) in
2003 due to (1) a drop in sales revenues and (2) an increase in
operating expenses from a year ago, DebtTraders reports. Total
revenues dropped by 12 percent to 1.1 billion pesos ($22
million) in the first quarter of 2003 from 1.3 billion pesos
($25 million) the same quarter in 2002. During the period,
revenues from data and voice services dropped by 27 percent and
8 percent to 276 million pesos ($5 million) and 788 million
pesos ($15 million), respectively, from the year before.
Operating expenses expanded by 12 percent in the first quarter
of 2003 to 690 million pesos ($13 million), mainly attributable
to higher marketing expenses relating to the launch of tri-media
ads, higher leases for international circuits and transponders
and restructuring expenses.
As a result, EBITDA fell by 36 percent to 385 million pesos ($7
million). If the Company excludes the restructuring expenses of
98 million pesos ($2 million) and the incremental marketing
expenses of 34 billion pesos ($0.5 million), normalized EBITDA
will be 517 million pesos ($10 million), which still represents
a 14 percent drop from the same quarter in 2002. As of March 31,
2003, total debt remained little changed at $417 million,
including the $200 million 13.5 percent Notes due 2006, and 3
billion pesos ($58 million). Total debt-to-EBITDA continued to
stay at an unsustainable level of approximately 12 times.
Bayantel has proposed to its creditors that its total debt of
$417 million and 2,990 million pesos will be converted into a
$275 million interest-bearing and amortizing redeemable note
maturing in nine years and the balance into a zero-coupon note
convertible into equity in Bayantel. DebtTraders do not see how
the Company can generate cash to service its debt. Bayantel was
barely able to generate cash flow to cover its operating
expenses in the first quarter of 2003. As such, DebtTraders are
maintaining a SELL recommendation of the 13.5 percent Bond due
'06.
MANILA ELECTRIC: Implements Unbundling Discounts For Small Users
----------------------------------------------------------------
The Manila Electric Company (Meralco) will implement the
unbundling of its charges starting with its June 2003 billing
cycle in compliance with the May 30 order of the Energy
Regulatory Commission (ERC), a Company statement said.
The ERC order provides graduated discounts to residential
customers consuming within 100 kilowatt-hours per month, which
the Commission considers as lifeline users. As of April 2003,
these customers number 1.33 million representing 34 percent of
Meralco's 3.96 million customers.
"The customers that would benefit the most from the lifeline
discounts are those consuming within 50 kWh who will get a 50
percent discount in their monthly bills with the unundling. Some
591,000 customers or 15 percent of Meralco's total number of
customers already fall in this category," says Meralco Utility
Economics head Ivanna de la Pena.
De la Pena added that residential users consuming within 51 to
70 kWh get a monthly discount of 35 percent while those
consuming within 71 to 100 kWh will get a 20 percent discount on
their monthly bill.
The approved unbundled charges no longer include an income tax
component.
"This is in accordance with the recent Supreme Court decision
which declared that Meralco cannot recover income taxes from its
customers' charges," Meralco spokesman Elpi Cuna said.
Meralco was also directed by the ERC to no longer collect the
purchased power adjustment.
"In the unbundled Meralco rates, customers will clearly see what
they are paying for as the new rates unbundle or itemize the
bill according to cost and function, in general, generation,
transmission, distribution, metering, supply, and universal
charges," Cuna added.
The unbundled rates also show which portions of the electric
bill are pass-through charges that Meralco collects on behalf of
other entities, and what goes to Meralco, de la Pena explained.
The pass-through charges are the Generation Charge, Transmission
Charge, System Loss Charge, Franchise Tax and the Universal
Charge.
The portions that only go to Meralco are the Distribution
Charge, Metering Charge, Supply Charge, and the Currency
Exchange Rate Adjustment (CERA).
The unbundling of charges of all electric utilities in the
Philippines is in compliance with Section 36 of Republic Act
9136 or the Electric Power Industry Reform Act of 2001.
Meralco filed its proposed unbundled rates for approval by the
ERC on December 26, 2001.
"The ERC decision on Meralco's unbundling came out on March 20,
2003 after almost a year and a half of extensive regulatory
proceedings and public scrutiny, including the conduct of 55
public hearings participated in by 18 organizations and
interested parties," Cuna said.
The recent order resolves the motion for reconsideration filed
April 9 by Meralco on the ERC's March 20 decision.
MANILA ELECTRIC: Refutes Congressman Beltran's Claim
-----------------------------------------------------
The Manila Electric Company (Meralco) categorically denied
reports that the Company will forfeit refunds not claimed by
customers consuming 0-100 kWh per month within the three-day
period specified by Meralco, the Company said in a statement.
Refuting the statement of Party List Representative Crispin
Beltran that there is a deliberate attempt to confuse the public
and sabotage the release of the refund, Elpi Cuna, Meralco Vice
President for Corporate Communication, said it is Mr. Beltran
who is deliberately misleading customers.
"We hope that Mr. Beltran can be more careful about his
statements. If he has concerns on the refund process, he should
go to the Energy Regulatory Commission to present his side,"
Cuna said.
Meralco said that 40 branches and refund centers will be
designated to process refund claims and will be open from Monday
to Saturday from 7 a.m. to 7 p.m.
Cuna added that there would be more ads in tri-media which
customers should watch out for before June 6.
"We are currently conducting an all-out information drive and
intensified our public information campaign to educate all our
customers on the refund and credit implementation process. In
fact, the Company has asked the help of public service radio and
TV stations, including newspapers, to drive our message across,"
Cuna said.
MANILA ELECTRIC: Submitting Second Phase Refund Proposal June 16
----------------------------------------------------------------
The Manila Electric Co. (Meralco) has been allowed to defer the
submission of its proposal for the second phase of refunds to
customers that belong to middle and upper consumption bracket,
the Business World reports. Meralco will submit its proposal to
the Energy Regulatory Commission on June 16. The firm was
originally supposed to submit it last May 24.
Meralco Senior Assistant Vice-President and head of utility
economics Ivanna G. dela Pe¤a said the proposal will cover
consumers with consumption of 101 kilowatt hours (kwh) per month
or more, including commercial and business establishments. She
also said there is likely to be "several phases" for the refund.
=================
S I N G A P O R E
=================
ASIA PULP: Creditors Agree on Debt Payment
------------------------------------------
Asia Pulp & Paper Co. and its key creditors, the Indonesian Bank
Restructuring Agency (IBRA) and representatives of the Export
Credit Agencies from 11 countries signed an agreement approving
the latest repayment proposals for $6.4 billion of debt,
including a default clause meeting creditor demands, DebtTraders
reports. The default mechanism allows a 90-day initial grace
period following any payment default. If the payment default
were not remedied within that period, creditors would be able to
declare all the restructured debt due and payable on 75 percent
of creditors voting for the default. If the payment default was
not cured within a second 30-day grace period and less than 75
percent of creditors voted for the acceleration, only 67 percent
of majority votes could accelerate the debt. The votes will
decrease to 51 percent after a third 30-day cure period.
In the event that a majority of creditors were still not in
favor of accelerating the debt, a fourth 30-day grace period
would be permitted, following which 25 percent of creditors
would be able to vote to accelerate the debt. According to the
terms, APP operating companies' $6.4 billion debt will be
restructured into Tranche A ($1.2 billion), Tranche B ($3
billion) and Tranche C (about $2.2 billion). Only Tranche A is
sustainable based on debt service of between $30 million and $40
million per month in ten years. Repayments of Tranche B depend
on refinancing in 10 years. Tranche C is payable in 12 years and
extendable for a further 3 years.
HUA KOK: Unit Appoints Receivers and Managers
---------------------------------------------
The Board of Directors of Hua Kok International Ltd (HKI)
announced that its subsidiary AGP Pte Ltd AGP has been notified
that Messrs Michael Ng and Peter Chay of KPMG have been
appointed jointly and severally as Receivers and Managers of
AGP.
HKI owns 56.4 percent of the share capital of AGP. At HKI's
extraordinary general meeting held on 23 May 2003, the
shareholders of HKI had approved the divestment of inter alia,
all HKI's shares in AGP (as part of the PD Group) under a sale
and purchase agreement dated 26 February 2003 entered into
between HKI and Rayo Pte Ltd. The said divestment is pending
completion. Pursuant to the sale and purchase agreement, the
management control of AGP had been handed over to Rayo Pte Ltd
since 26 February 2003.
The above appointment of Receivers and Managers is not expected
to have any material impact on the net tangible assets and
earnings per share of the Hua Kok Group for the financial year
ending 30 June 2003 as HKI expects the completion of the
divestment to take place in accordance with the sale and
purchase agreement.
PAN-UNITED: Unit Enters Voluntary Liquidation
---------------------------------------------
The Board of Directors of Pan-United Corporation Ltd (PUC)
announced the voluntary liquidation of Omniview Systems Pacific
Pte Ltd OSP, a 84.4 percent subsidiary of Pan-United Engineering
Pte Ltd PUE. PUE is a wholly owned subsidiary of the Company.
Messrs Chan Ket Teck, Timothy James Reid and Goh Thien Phong of
PricewaterhouseCoopers have been appointed liquidators to
conduct the voluntary liquidation of OSP.
The above transaction will not have a material impact on the
consolidated net tangible assets per share and earnings per
share of the PUC Group for the financial year ending 31 December
2003.
None of the Directors of the Company have any interest, direct
or indirect, in the transaction.
THAKRAL CORPORATION: Posts Notice of Shareholder's Interest
-----------------------------------------------------------
Thakral Corporation posted a notice of changes in substantial
shareholder Jasvinder Singh Thakral's interests:
Date of notice to Company: 06 Jun 2003
Date of change of interest: 05 Jun 2003
Name of registered holder: Thakral Investments Holdings Pte Ltd
Circumstance(s) giving rise to the interest: Others
Please specify details: Deemed interest by virtue of Section 7
of the Companies Act, Cap. 50 -
Madam Satvinder Kaur, spouse of
Mr. Jasvinder Singh Thakral ceased to be a shareholder of
Thakral Investments Holdings Pte Ltd (TIHPL). Mr. Jasvinder
Singh Thakral was deemed to be interested in the shares held by
Madam Satvinder Kaur in TIHPL.
There is no change in the number of shares held by TIHPL in the
Company.
Information relating to shares held in the name of the
registered holder:
No. of shares which are the subject of the transaction:
22,189,585
% of issued share capital: 1.48
Amount of consideration (excluding brokerage and stamp duties)
per share paid or received: Nil
No. of shares held before the transaction: 22,189,585
% of issued share capital: 1.48
No. of shares held after the transaction: 22,189,585
% of issued share capital: 1.48
Holdings of Director including direct and deemed interest
Deemed Direct
No. of shares held before the transaction: 22,189,585 0
% of issued share capital: 1.48 0
No. of shares held after the transaction: 0 0
% of issued share capital: 0 0
Total shares: 0 0
No. of Options - 2,000,000 (granted on 7 April 2003)
VAN DER HORST: Appoints New Company Secretary
---------------------------------------------
Van der Horst Ltd (Under Judicial Management) announced the
following:
1. The appointment of Mr Attlee Hue Kuan Yew as Secretary of the
Company in place of Ms Yvonne Choo with effect from 1 June 2003.
2. The appointment of M & C Services Private Limited as Share
Registrar of the Company in place of Lim Associates (Pte) Ltd
with effect from 1 June 2003.
3. The Register of Members and Index of the Company are kept at
138 Robinson Road #17-00, The Corporate Office, Singapore 068906
with effect from 1 June 2003.
===============
T H A I L A N D
===============
MEDIA OF MEDIAS: Posts Audit Committee Members, Scope of Duty
-------------------------------------------------------------
The Board of Directors' meeting of Media of Medias Public
Company Limited No.3/2546 held on May 29, 2003 passed
resolutions, effective May 29, 2003, appointing:
1. Mr. Yongyuth Withyawongsaruchi as the Chairman of the
audit committee.
2. Mr. Chet Raktakanishta as the audit committee.
3. Mr. Jessada Promjart as the audit committee.
2. The Audit Committee of the Company has the scope of duties
and responsibilities, and shall report to the board of director
on:
1. Oversee the company's financial reporting process and
the disclosure of its financial
2. Ensure the company has adequate and effective internal
control systems.
3. Ensure the company follows all the relevant regulations
and laws.
4. Appoint the company's auditors and determine audit fees.
5. Ensure a listed company does not engage in any
activities that may lead to a conflict of interest.
6. 6. Produce an Audit Committee Report in the Annual
Report. The Chairman of the Audit Committee must sign
the report.
7. Other matters as defined by the Board of Directors.
The company hereby certifies that the aforementioned members
meet all the qualifications prescribed by the Stock Exchange of
Thailand.
PICNIC GAS: SET Halts Securities Trading
----------------------------------------
The Stock Exchange of Thailand has posted `H' sign against the
stock of Picnic Gas and Chemicals Public Company Limited because
the company is going to disclose the information concerning its
net profit in 2nd quarter of 2003.
The company is asked by the SET to give clarification to the
investors through the SET. It was unable to render the
clarification that can be disclosed to the investors before this
morning trading session.
As a result, trading in PICNIC stocks is halted from morning
session of June 6, 2003 onwards until the company clarifies and
discloses the clarification to the public.
TANAYONG PUBLIC: Reports Business Reorganization Progress
---------------------------------------------------------
Pursuant to the Business Reorganization petition of Tanayong
Public Company Limited filed on January 22, 2002 with the
Central Bankruptcy Court, and subsequently the Court gave an
order on February 18, 2002 for the Business Reorganization and
appointing Tanayong Planner Company Limited as the Planner of
Tanayong Public Company Limited.
Accordingly, Tanayong Planner Company Limited, as the Planner of
Tanayong Public Company Limited, has prepared the Plan and sent
to the Official Receiver as well as all the creditors having
voting rights.
The Official Receiver then called for a series of meetings of
creditors with voting rights in order to discuss whether to
accept the Plan or to revise it. And at the April 22, 2003
meeting, those at the creditors' meeting have passed a
resolution to approve the plan. Thus the Court had set June 4,
2003 as a date for considering the plan.
However, before this date, 14 creditors raised their objections,
whereupon at this June 4, meeting the Court has accepted and
requested for more explanation by these creditors as well as for
further consideration by the Court.
* S&P Takes Various Rating Actions on Thai Banks
------------------------------------------------
Standard & Poor's Ratings Services has reappraised the Thai
banking industry in light of the improvements in economic
conditions and progress made in dealing with non-performing
assets in the system. As such, Standard & Poor's has a more
positive view of the Thai banking industry in general and taken
various rating actions on individual Thai banks:
-- The long-term counterparty credit rating on Siam
Commercial Bank Public Co. Ltd. was raised to 'BB' from 'BB-',
and the outlook revised to positive from stable. The bank's 'B'
short-term counterparty credit rating was affirmed.
-- The ratings on the following banks were affirmed and the
outlooks revised to positive from stable: Bangkok Bank Public
Co. Ltd. (BB/Positive/B), Bank of Ayudhya Public Co. Ltd.
(B/Positive/B), and KASIKORNBANK PUBLIC CO. LTD. (BB/Positive/B;
formerly Thai Farmers Bank).
-- The ratings and outlooks on Industrial Finance Corp. of
Thailand (IFCT; BB+/Stable/B), and Bank of Asia Public Co., Ltd.
(BB/Stable/B) were affirmed.
-- The public information ratings on Krung Thai Bank Public
Co. Ltd. ('BBpi'), Siam City Bank Public Co. Ltd. ('Bpi'), and
Thai Military Bank Public Co. Ltd. ('Bpi') were affirmed.
The rating and outlook actions reflect Standard & Poor's view
that, after many years struggling with the aftermath of the
1997-1998 Asian crisis, the Thai banking sector has improved its
credit profile. This has been driven by two main factors:
Thailand's favorable economic growth rate of more than 4% in
2002 and into 2003, which has helped alleviate stresses in
the operating environment; and efforts made by banks and
regulatory authorities to address non-performing assets (NPAs;
which include loans on 3-month overdue basis, as well as
restructured loans and foreclosed properties) in the system.
Assisted by better economic conditions and the transfer of bad
loans to the government's Thai Asset Management Company, NPAs in
the domestic banking system have fallen substantially as a share
of total loans in the past two years, although they remain high
at 30.5% at year-end 2002. This substantial proportion of bad
assets is, however, mitigated by larger loan-loss reserve
coverage and the better NPAs recoverability prospects brought
about by the general economic improvement. In tandem with
improving asset quality, Thai banks have achieved higher
operating profits, although still significantly below pre-crisis
levels.
Although ratings on several banks carry a positive outlook, the
rate of improvement at these institutions differs, meaning any
future upgrade would not necessarily occur for all banks at the
same time.
The upgrade on Siam Commercial acknowledges the efforts made by
the bank in improving its financial profile, particularly in
reducing problem loans, in strengthening the reserving coverage
against NPAs, and in its higher operating profitability. The
combination of more aggressive bad debts charge-offs, and the
disposal of bad loans to the Thai Asset Management Company and a
tapering off of restructure loans, allowed Siam Commercial to
reduce its 2002 NPAs ratio by eight percentage points to
34.4%.
Also, Siam Commercial took a one-off, large credit charge that
helped to strengthen the bank's reserving coverage against NPAs
to 47.6%, the highest among domestic peers in 2002. Recognition
is also given to the bank's ability to maintain operating
profitability (as measured by pre-provision net operating income
ratio) above domestic industry averages. Siam Commercial's pre-
provisioned net operating income ratio was 1.96% in 2002
(compared against an industry average of 0.7%).
The outlook revisions on Bangkok Bank, Bank of Ayudhya, and
KASIKORNBANK reflect their efforts made in strengthening
reserving coverage against NPAs and in bedding down problem
loans. There is divergence in the banks' operating
profitability, however, and although KASIKORNBANK has a smaller
market franchise than Bangkok Bank, it has made more rapid
progress in improving its operating profitability, predominantly
through its more disciplined cost control and ability to manage
margin dynamics. Operating profitability rose to 1.19% from
0.5%, which compared favorably with Bangkok Bank's 0.8% in 2002.
Also, KASIKORNBANK's ratio of net interest income over average
earning assets tends to be higher than major domestic peers,
which could be attributable to the bank's pricing advantage.
Should KASIKORNBANK continue to make good improvement in its
financial profile, there would be a higher probability for a
rating upgrade.
On the other hand, Bangkok Bank's ratio of net interest income
tends to be lower, due to the bias of its loan book toward the
larger corporate sector (that tends to command finer margins).
In the past two years, Bangkok Bank's interest income on average
earning assets (a measure of profitability) has been
particularly subject to competitive pricing pressure because of
limited viable lending opportunities and rising
disintermediation.
Bank of Ayudhya's earlier initiatives to rein in expenditure
have tightened cost management, and together with the ability to
manage margin dynamics, has allowed the bank to achieve its
first positive pre-provisioned net operating income ratio of
0.64% in 2002, since 1998.
IFCT's ratings, which were affirmed, incorporate the implicit
government support the agency receives for its quasi-public
policy role. Despite the initiatives taken to improve its
funding mix, the bank still faces the challenge of improving its
operating performance. Its high level of nonperforming loans and
high borrowing, however, undermines its efforts
cost structure. Furthermore, IFCT's likely expansion into a
specialized wholesale bank could provide it with more funding
flexibility, but could also pose risks to it risk profile.
The affirmation of the ratings on Bank of Asia acknowledges the
financial flexibility afforded to the bank as a result of its
majority ownership by, and its integration with, ABN AMRO Bank
N.V. (AA-/Stable/A-1+). However, the bank's profitability faces
short-term challenges with restructured loans lapsing to
nonperforming status and the need to set aside loan loss
provisions. The continued financial support of ABN-AMRO remains
a critical rating factor.
The 'BBpi' rating on Krung Thai Bank incorporate the implicit
support from its majority ultimate owner, the government of
Thailand, stemming from the bank's current quasi-public policy
role. The 'Bpi' rating on Siam City Bank and Thai Military Bank
reflect their still-weak financial profiles. Although Siam City
Bank's NPAs ratio of 4.8% was the lowest among domestic peers in
2002, the evaluation is based on publicly available information
and incorporates a certain degree of information risk.
Furthermore, given its status as a nationalized bank, Siam City
Bank could be subject to public policy directed lending, and its
book could still contain some embedded credit risks.
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.
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