/raid1/www/Hosts/bankrupt/TCRAP_Public/030806.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, August 06 2003, Vol. 6, No. 154
Headlines
A U S T R A L I A
ANALYTICA LIMITED: Comments on SSH's Alternative Funding
ANALYTICA LIMITED: Releases Q203 Operations Review
ASHBURTON MINERALS: Releases Q203 Operations Report
AUSTAR UNITED: Lodges Q203 Cashflows Statement With ASX
REYNOLDS WINES: Securities Suspended From Official Quotation
REYNOLDS WINES: Voluntary Administrators Appointed
UNION CAPITAL: Posts Q203 Report Highlights
C H I N A & H O N G K O N G
ASIA GLOBAL CROSSING: Trustee Wants to Hire G.E.M. as Custodian
DONG FANG: Narrows Net Loss to HK$113.214M
FUJIAN GROUP: Annual Report Dispatch Delayed
GRACEFUL PACIFIC: Winding Up Petition Pending
RACON INTERNATIONAL: Winding Up Sought by Dignity Contracting
RENREN HOLDING: Settles Debt to GE Capital Via Shares Issue
SEAPOWER RESOURCES: August 25 Scheme Creditors' Meeting Set
TELFORD STATIONERY: Winding Up Petition Hearing Set
I N D O N E S I A
CITRA MARGA: Bondholders Agree With Bond Coupon
* IBRA Hosts the Second Investor Forum 2003
J A P A N
DAIEI INC.: Seeks Revival Body's Support For Fukuoka Business
RESONA BANK: Deposits Drop Y2Tr in First Quarter
RYOKUEI GROUP: Golf Club Operator Files For Court Protection
SHINTOSHI FUDOSAN: Enters Special Liquidation Proceedings
TOSHIBA CORPORATION: Wins SEK100m Order From Sweden Post
K O R E A
CHOHUNG BANK: Unveils US$407M Deficit in Second Quarter
HYNIX SEMICONDUCTOR: U.S. Amends Final Countervailing Duty
HYUNDAI GROUP: Chief Commits Suicide
KOOKMIN BANK: Secures Y2B Club Loan
SK GLOBAL: Accepts 43 Cents on the Dollar
SK GLOBAL: Domestic Creditors Approve Receivership
SK GLOBAL: Meeting With US Trustee to Form Committees
M A L A Y S I A
ABRAR CORPORATION: Provides Regularization Exercise Update
AKTIF LIFESTYLE: KLSE Grants Two-Month RA Extension
EPE POWER: July Defaulted Interest, Principal Hits RM719,484
GENERAL LUMBER: MIB Shares Admitted to KLSE Official List
KIARA EMAS: Court OKs Proposed Shareholders', Creditors' Scheme
KRAMAT TIN: Continuing New Core Business Search
KUMPULAN HARTANAH: Subsidiary Faces Winding-Up Petition
MALAYSIAN RESOURCES: Unit Inks JVSA With ST, ES
MBF CAPITAL: Capital Reduction Books Closure Set on Aug 11
NAUTICALINK BHD: Likely to Meet Proposals Submission Deadline
NCK CORPORATION: July Default in Payment Narrows to RM170.479M
PLANTATION & DEVT: Awaits SC's Abridged Prospectus Decision
RENONG BERHAD: Inks Supplemental Agreements With UEM
SENG HUP: Financial Regularization Status Remains Unchanged
SITT TATT: Inks SPA, Deed of Settlement With Vendors
SITT TATT: Reaches Final, Full Settlement With MISL
TALAM CORPORATION: Unit Makes RM900M BaIDS Settlement
TECHNO ASIA: Seeks Investigative Audit Time Extension
TRANS CAPITAL: AWC Issues Proposed Restricted Offer Prospectus
UCP RESOURCES: Releases Default in Payment Update
P H I L I P P I N E S
MANILA ELECTRIC: Mulls Seeking New Rate Increase
MANILA ELECTRIC: Targets P1.0B in Profits This Year
PHILIPPINE LONG: CSFB & Morgan Mandates US$300M Bond Issue
S I N G A P O R E
ADVANCE AGRO: S&P Rates Debt at 'CC'; Issuer Rating Remains 'SD'
BBR GROUND: Issues First Interim Dividend Notice
CHARTERED SEMICON: Fab Units Receive Safety Performance Awards
GRAND GARDEN: Issues Notice of Winding Up Order
LASCO PTE: Winding Up Hearing Set For August 15
ST ASSEMBLY: Moves Closer to Profit
T H A I L A N D
BANGCHAK PETROLEUM: Appoints Dir Chunhavajira as FRS Chairman
MILLENNIUM STEEL: SET Grants Listed Securities
NATIONAL FERTILIZER: Filing Rehabilitation Plan to Court
THAI WAH: Court Orders Registered Capital Increase
- - - - - - - -
=================
A U S T R A L I A
================
ANALYTICA LIMITED: Comments on SSH's Alternative Funding
--------------------------------------------------------
On 24 July 2003 SSH Medical Limited (SSH) released an ASX
announcement in response to Analytica Limited's takeover
proposal.
In that release SSH advises its shareholders that it has been
(and is) exploring a potential capital raising as an alternative
to Analytica's takeover bid. Analytica believed this to be
misleading and nothing more than an attempt by the CEO and the
Board to mislead shareholders into thinking that the supposed
capital raising is a credible alternative to the Analytica bid.
On 28 July 2003 called on SSH to substantiate this claim.
SSH replied to Analytica on 30 July 2003. The effect of its
reply is that it is unwilling and/or unable to substantiate this
claim.
In this respect Analytica notes SSH's appendix 4C dated 31 July,
2003, and the accompanying narration, for the quarter ending
June 2003. SSH states that its net operating cash flow is an
outflow of $208,000. Analytica does not believe this is a
fair representation of the facts. Although the covering
narrative refers to a number of one-off expenditure items it
neglects to mention the far more material one off cash
inflow items. We also note that SSH has adopted a policy of
capitalizing research and development costs. A conservative
accounting approach would have been to expense these costs and
show the related cash outflow as part of cash operating
cash outflow instead of investing activities.
Analytica believes that the proper position of the quarterly
operating cash outflow is as follows:
Stated operating cash outflow $208,000
Once off tax receipt $281,000
Capitalized salary cost $73,000
Total proper operating cash outflow for the quarter $562,000
Analytica notes that the 4C shows expenditure of $285,000 on
"other non-current assets". While it is not clear from the
appendix 4C if this amount is capitalized R&D, Analytica
believes if it is capitalized R&D the expenditure should have
been shown as operating cash outflow, which would bring the
operating cash outflow for the quarter to $774,000.
Similarly Analytica believes that the proper position of the
full year operating cash outflow is:
Stated operating cash outflow $966,000
Keyman insurance $1,000,000
Capitalized research and development - up to $1,012,000
Total proper operating cash outflow for the year $2,978,000
Analytica's view is that the capitalized R&D expenditure should
have been treated like any other expense and written off.
Capitalizing R&D can create ambiguity.
Further, tax receipts should be recognized as non-recurring and
most often represent the recoupment of a portion of the R& D
expenditure spent to claim them. The same applies to an
insurance payout.
The company, based on this analysis, is spending approximately
$250,000 per month.
It has less than six months' cash to sustain it and it is not
(despite its unsubstantiated claims) engaged in any credible
capital raising.
In light of SSH's cash position and its need for additional
capital (which SSH recognizes, by claiming, on 24 June and 24
July, that it is negotiating for a private placement), Analytica
believes that it is in the interests of SSH shareholders, and an
informed market, to publish the correspondence between SSH and
Analytica about this alternative funding. The letters are
attached at http://bankrupt.com/misc/TCRAP_ALT20806.pdf.
Analytica also notes that if its takeover succeeds, Analytica
will have in excess of $3 million to fund the businesses.
ANALYTICA LIMITED: Releases Q203 Operations Review
--------------------------------------------------
When Analytica Limited acquired its diagnostic business from
Psiron Ltd in December 2001 it did so to create a trading
business in the life sciences sector. Analytica's strategy is
to grow through mergers and acquisitions of similar businesses
to create critical mass in this sector, and was commenced with
the recently announced takeover offer for SSH Medical Limited.
To prepare the Company to implement this strategy, Analytica:
* Has paid out the Deed of Company Arrangement;
* Has strengthened its balance sheet by Psiron converting its
preference shares to ordinary shares;
* Intends, subject to shareholder approval, to convert about
$1.6 million of debt to equity;
* Has completed a small placement raising approximately
$350,000;
* Has reached an agreement with the Australian Technology
Innovation Fund Limited to underwrite a $3 million rights issue.
This agreement is subject to the SSH acquisition proceeding and
other standard underwriting conditions.
The diagnostic business has performed well with a modest growth
over the previous year and two new diagnostic product launches.
The Company has launched four new products in the last year, a
doubling of the product range. Sales growth from these new
products should follow over the next 12 months.
Go to http://bankrupt.com/misc/TCRAP_ALT0806.pdfto see cash
flow report showing total available cash, including the small
placement, of $846,000 at the end of the quarter not allowing
for the $3 million rights issue referred to above.
CONTACT INFORMATIONL Ron van der Pluijm
Managing Director
Tel: (02) 9659 8652
ASHBURTON MINERALS: Releases Q203 Operations Report
---------------------------------------------------
Ashburton Minerals Limited released its quarterly report for the
period ended 30 June 2003. Corporate highlight are below:
Drummond Basin Gold Assets
As previously announced, the Company is acquiring the Drummond
Basin Gold Assets (Drummond Assets) in NE Queensland from Delta
Gold Exploration (1995) Pty Ltd (Delta), a wholly owned
subsidiary of Placer Dome Asia Pacific Limited (Placer), by
purchasing all of the shares in Wirralie Mines Pty Ltd, the
owner of the Drummond Assets.
The Company is pleased to announce that a formal Share Sale
Agreement (SSA) between Ashburton and Delta has been signed.
Additionally, the Completion Date has been extended to 20 August
2003 to allow the Company time to complete the $3 million
fundraising it is currently undertaking via a prospectus.
Macquarie Bank facility
Under the terms of the SSA, Ashburton has to replace existing
environmental performance bonds of $2.6 million currently in
place over the Drummond project tenements. Agreement on terms
has been reached with Macquarie Bank Limited whereby Macquarie
will provide a performance bond facility (bank guarantee) up to
$2.75 million, for which Ashburton will be required to provide a
cash backing for bonds in excess of $1.5 million, that is $1.1
million. Under the terms of the facility, Macquarie is to be
issued with $0.5 million in options, at a conversion price equal
to the prospectus raising price, namely 12 cents. Ashburton will
also pay Macquarie 2% interest per annum on the $1.5 million
debt component of the facility. Formal documentation in relation
to this facility is currently in preparation.
Fundraising
To facilitate the acquisition of the Drummond Assets, the
Company lodged a prospectus with the Australian Securities and
Investments Commission offering 25 million fully paid ordinary
shares at 12 cents per share, following a 1 for 15 consolidation
of existing issued capital, to raise $3 million. The minimum
application will be for 15,000 shares, being $1,800.
The proceeds of the share offer will be used to complete an
implementation study on the oxide resource at Wirralie mine,
including confirmation of costs to re-commission the necessary
infrastructure, including refurbishment of the treatment plant,
to allow mining to recommence. These costs are currently
estimated at below $2 million. Ashburton will also complete
further exploration and development of the 297,000 oz sulphide
resource on the back of recent laboratory tests that indicate
recoveries of up to 96% of the gold from the sulphide ore
concentrate.
The closing date for applications under the prospectus is 15
August 2003.
Go to http://bankrupt.com/misc/TCRAP_ASH0806.pdffor a full copy
of the report as well as the Mining exploration entity quarterly
report.
AUSTAR UNITED: Lodges Q203 Cashflows Statement With ASX
-------------------------------------------------------
Austar United Communications (AUSTAR) on Friday filed its
Appendix 4C statement of cashflows for the quarter ended 30 June
2003, as required by the Australian Stock Exchange.
A full statement of the company's financial position for the
quarter and the first half will be released in mid-August 2003.
The cashflow statement shows that net cash generated in
operating and investing activities during the quarter ended 30
June 2003 was $18.9 million, bringing the total for the year to
date to $18.0 million.
A key contributor to this result was the receipt of $25.0
million from the sale of the company's stake in TelstraClear. In
line with AUSTAR's loan facility agreement, 65% of the net
proceeds from the sale funded the repayment of bank debt.
Capital expenditure for the quarter was $20.3 million,
representing an increase of $10.6 million from the previous
quarter. The increase reflects costs associated with general
growth in the business in addition to the planned roll-out of
upgraded customer technology.
Cash on hand at 30 June 2003 was $30.2 million. In addition,
$31.8 million was held in the "United Contingent Cash Account"
provided by UnitedGlobalCom as part of the agreement to
refinance AUSTAR's debt facility.
To see full copy of the statement of cashflow, go to
http://bankrupt.com/misc/TCRAP_AUN0806.pdf.
About Austar United Communications
Austar United Communications (Australian Stock Exchange "AUN")
is a leading provider of subscription television services in
Australia, providing principally satellite delivered services to
regional and rural Australia. AUSTAR also provides
communications services to its customers, bundling mobile
telephony and internet services with its television product.
AUSTAR's 50% owned joint venture, XYZ Entertainment, is a
significant program provider in the Australian market and owns
and/or distributes Nickelodeon, Discovery, Channel [V],
musicMAX, Arena, The Lifestyle Channel and The Weather Channel
to over 1.2 million subscribers. In addition, AUSTAR was the
first company in the Asia Pacific to launch digital interactive
television.
CONTACT INFORMATION: Deanne Weir
Group Director, Corporate Development and Legal Affairs
Austar United Communications
Telephone: 02 9295 0103
E-mail: dweir@austar.com.au
REYNOLDS WINES: Securities Suspended From Official Quotation
------------------------------------------------------------
The securities of Reynold Wines Limited were suspended from
quotation immediately following the appointment of Voluntary
Administrator.
Mr Greg Hall and Mr Phil Carter of PricewaterhouseCoopers have
been appointed to the Company and various subsidiary companies.
A separate media release made by the Administrators can be found
at http://bankrupt.com/misc/TCRAP_RYW0806.pdf.
REYNOLDS WINES: Voluntary Administrators Appointed
--------------------------------------------------
Mr Malcolm Irving, Chairman of Reynold Wines Limited, met with
representatives with the Australian Tax Office on July 31, 2003
and was advised that, notwithstanding the Company's proposals
and ongoing discussions since October 2002, the ATO would be
seeking to enforce assessments, both issued and to be issued,
against the Company and subsidiary totaling in excess of $10
million.
This outcome is totally contrary to the expectations and the
Board had just reached agreement, subject to shareholder
approval, on a planned private placement to raise $10 million
for working capital purposed by way of a convertible note issue.
As a result from the advice received from the ATO, the Company
is unable to proceed with the placement and accordingly, having
considered the alternatives to the Company, the Directors on
Tuesday resolved to appoint Mr Greg Hall and Mr Phil Carter of
PricewaterhouseCoopers Administrators of Reynolds Wines Limited
and various subsidiary companies.
UNION CAPITAL: Posts Q203 Report Highlights
--------------------------------------------
Union Capital Limited posted the highlights of its quarterly
report for the year-ended date 30 June 2003.
BASE METALS INVESTMENTS (Mehdiabad Zinc Project - around 33%
UCL)
* Union Capital Limited (UCL) has an approximate 33% interest
in the Mehdiabad Project Joint Venture in Iran. The Mehdiabad
Project is one of the world's largest undeveloped deposits of
zinc. The deposit also contains potentially commercial
quantities of lead, silver and barite.
* The present total resource calculated in accordance by
independent geologists SRK Consulting, is 218 million tonnes of
ore grading 7.2% Zn, 2.3% Pb and 51 g/t Ag. The in-ground metal
resources are 15.7 million tonnes of zinc, 5 million tonnes of
lead and 11,100 tonnes of silver. About a third of the
resource is zinc oxide liberalization and the remainder zinc
sulphides.
* The resource is "open" over a width of 1.8 klms at the
northern end and 400 meters wide at the southern end and hence
the ultimately resource could be considerably larger.
* Ore bodies of the Mehdiabad type are often "nested", and
hence there is potential for addition ore bodies to be found in
the area.
* It is proposed to develop the project in four stages over a
period of time. Recently UCL announced the commencement of a
feasibility study into the First Stage of the project. This
study is expected to take around 12 months, and the mine and
processing plant is expected to be commissioned in early 2006.
* The First Stage is likely to produce 35,000 tonnes of zinc
metal per annum and involve an open cut mine being developed
along the eastern side of the deposit, plus an "oxide processing
plant" to treat the ore mined and produce zinc metal.
* The "oxide processing plant" is likely to involve the use
of sulphuric acid to initially dissolve the zinc metal from the
ore. The leachate will then be purified to remove all the
contaminate metals. The zinc will be recovered from the
leachate by electro-winning. The slab zinc from the cell house
will be cast into SHG zinc ingots.
* The commissioning of the First Stage will provide a
valuable cash flow to the joint venture, and will represent an
excellent "launch-pad" for the development of up to three
further stages.
* The Second Stage is likely to be commissioned in the 4th
year of the Project and involve an expansion of the "oxide
processing plant" to a total capacity of 110,000 tonnes per
annum of zinc metal.
* The Third Stage is likely to be commissioned in the 7th
year of the Project and involve an addition of a "sulphide
processing plant" of equal size to the oxide plant, expanding
the operation to 220,000 tonnes per annum of zinc metal.
* In the "sulphide processing plant" it is envisaged that
the ore will be initially concentrated using conventional
floatation methods. The zinc concentrate will then be acid
leached to produce zinc metal in the same manner as will occur
in the "oxide processing plant".
* The Fourth Stage will involve a doubling of capacity of
the "sulphide processing plant" to a total capacity of 330,000
tonnes per annum of zinc from Mehdiabad.
* Fully developed, the life of mine would still be in excess
of 30 years.
* Deposits containing substantial "zinc oxide" resources are
limited in number, and unique in that they facilitate the use of
"acid leach" technology, which can substantially reduce the cost
of production.
* The "oxide" resource at Mehdibad is thought by UCL to
total around 25% of the world's known "zinc oxide" resources,
located within substantial zinc deposits.
* Fully developed the cost of production at Mehdiabad is
expected to be under US$500 per tonne, compared to a current
zinc selling price of US$850 per tonne.
* The Mehdiabad Project is a Joint Venture between UCL,
Iranian Government Company (IMPASCO) and Itok GmbH. IMPASCO
have a US$10 million credit in recognition of the past
exploration carried out by the Iranian Ministry of Mines. UCL
and Itok have spent approximately US$3.6 million on additional
exploration and a Pre-feasibility Study, and have to provide the
next US$6.4 million before IMPASCO need either contribute, or
dilute their interest below 50%.
According to Wrights Investors' Service, at the end of 2002,
Union Capital Limited had negative working capital, as current
liabilities were A$1.52 million while total current assets were
only A$1.14 million. It also reported losses during the previous
12 months and has not paid any dividends during the previous 4
fiscal years.
================================
C H I N A & H O N G K O N G
================================
ASIA GLOBAL CROSSING: Trustee Wants to Hire G.E.M. as Custodian
---------------------------------------------------------------
Pursuant to Section 327(a) of the Bankruptcy Code and Rule 2014
of the Federal Rules of Bankruptcy Procedure, Robert L. Geltzer,
Asia Global Crossing Ltd.'s Chapter 7 Trustee, sought and
obtained the Court's authority to employ G.E.M. Auction Corp. as
his custodian effective June 18, 2003.
Mr. Geltzer says that G.E.M. has assisted in various custodian
duties in the past, including securing premises, changing locks,
providing security, inventorying assets, transporting documents
and storing them safely.
Specifically, G.E.M. will:
(i) assist the Trustee in garnering, securing, safeguarding,
packing, transporting and storing any and all books and
records of the Debtors;
(ii) determine the value of any and all furniture, fixtures
and equipment located on the Debtors' premises and make
recommendations to the Trustee as to disposition of same;
and
(iii) secure the Debtors' premises by changing the locks,
and, at the Trustee's request, retain security guards to
oversee the premises during the period the accountants
are reviewing the books and records.
According to Robert Moneypenney, CEO of G.E.M. Auction Corp.,
G.E.M. does not hold or represent any interest adverse to any
interest of the Trustee, the Debtors or their creditors with
respect to the matters it will be engaged. Hence, G.E.M. is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code. Moreover, G.E.M. is not a creditor of the
Debtors and has no relevant connection with any parties-in-
interest or their attorneys.
Upon preliminary investigation, the Debtors' estate possesses
little in terms of valuable assets, which will be sold. Thus,
Mr. Geltzer is confident that G.E.M.'s existing $200,000 bond
with the Clerk of Court constitutes sufficient protection.
Mr. Moneypenney tells the Court that G.E.M. will charge $200 per
hour for the services to be provided. Moreover, G.E.M. will seek
reimbursement for their out-of-pocket expenses. (Global Crossing
Bankruptcy News, Issue No. 44; Bankruptcy Creditors' Service,
Inc., 609/392-0900)
DONG FANG: Narrows Net Loss to HK$113.214M
------------------------------------------
Dong Fang Gas Holdings Limited posted a summary of its results
announcement for the year ended March 30, 2003:
Year end date: 31/3/2003
Currency: HKD
Auditors' Report: Unqualified
(Audited)
(Audited) Last
Current Corresponding
Period Period
from 1/4/2002 from 1/4/2001
to 31/3/2003 to 31/3/2002
Note ('000) ('000)
Turnover : 136,196 258,265
Profit/(Loss) from Operations : (57,225) (274,232)
Finance cost : (29,429) (33,712)
Share of Profit/(Loss) of
Associates : (2,129) (88,227)
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (113,214) (458,994)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.18) (12.66)
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (113,214) (458,994)
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
Remarks:
1. ADOPTION OF NEW AND REVISED STATEMENTS OF STANDARD ACCOUNTING
PRACTICE
In the current year, the Group has adopted, for the first time a
number of new and revised Statements of Standard Accounting
Practice (SSAPs) issued by the Hong Kong Society of Accountants:
SSAP 11 (Revised) Foreign currency translation
SSAP 34 Employee benefits
The adoption of these SSAPs has resulted in a change in the
format of presentation of the cash flow statement and the
statement of changes in equity but has had no material effect on
the results for the current or prior accounting periods.
Accordingly, no prior period adjustment has been required.
2. LOSS PER SHARE
The calculation of the basic loss per share is based on the net
loss for the year of HK$113,214,000 (2002:HK$458,994,000) and on
the adjusted weighted average of 631,128,400 (2002: adjusted
36,265,314) ordinary shares in issue during the year, after
adjustment for the effect of the share consolidation.
No diluted loss per share for both years have been presented as
the exercise of the potential ordinary shares would result in a
reduction in loss per share.
3. Certain prior year comparatives have been reclassified to
conform to current year presentation.
FUJIAN GROUP: Annual Report Dispatch Delayed
--------------------------------------------
As Fujian Group Limited (Provisional Liquidators Appointed)
needs more time to clarify various outstanding matters with its
auditors in relation to the accounting treatment of inclusion of
a jointly controlled entity of the Company, which is engaged in
the business of property holding, in the group's accounts and
finalize the consolidation of the group's account for the year
ended 31 March 2003 (the "Financial Year 2002/2003"), the
dispatch of the annual report for the Financial Year 2002/2003
(the Annual Report) and the publication of the audited results
for the Financial Year 2002/ 2003 have been delayed. It is
expected that the Company's audited results for the Financial
Year 2002/2003 will be published and the Annual Report will be
dispatched on or before 7 September 2003.
The postponement mentioned above constitutes breaches of
paragraph 8(1), 11(1) and 11(3)(i)(c) of the Listing Agreement,
which require the Company to publish, in a newspaper, audited
final results and to dispatch the annual report to its
shareholders not later than four months after the financial year
end. The Stock Exchange of Hong Kong Limited reserves the right
to take action against the Company in respect of these breaches.
The Company confirms that the above postponement do not
contravene the bye-laws of the Company nor the Hong Kong
Companies Ordinances so long as the Company is able to give at
least 21 clear days notice for convening the annual general
meeting (AGM) and the audited accounts to be laid at the
AGM is not more than 6 months before the date of the AGM.
Trading in the securities of the Company has been suspended
since 16 February 2001 and will be remain suspended until
further notice.
GRACEFUL PACIFIC: Winding Up Petition Pending
---------------------------------------------
Graceful Pacific Limited is facing a winding up petition, which
is slated to be heard before the High Court of Hong Kong on
August 6, 2003 at 9:30 in the morning,
The petition was filed on Ju8ne 13, 2003 by Charter Sense
Development Limited whose registered office is situated at Room
1205, 12th Floor, Leighton Centre, 77 Leighton Road, Causeway
Bay, Hong Kong.
RACON INTERNATIONAL: Winding Up Sought by Dignity Contracting
-------------------------------------------------------------
Dignity Contracting Company is seeking the winding up of Racon
International Limited. The petition was filed on June 20, 2003,
and will be heard before the High Court of Hong Kong on August
19, 2003.
Dignity Contracting holds its registered office at 34 & 36, 1st
Floor, Hutton Square, 28 Bute Street, Mongkok, Kowloon, Hong
Kong.
RENREN HOLDING: Settles Debt to GE Capital Via Shares Issue
-----------------------------------------------------------
On 18th March, 2003, renren Holdings Limited entered into the
Addendum to the Tomlin Order with renren Limited, a wholly owned
subsidiary of the Company and GE Capital pursuant to which the
Company has been approved to settle the claim in the total sum
of HK$5,690,000 from GE Capital by five installments and the 5th
installment amounting to HK$2,650,000 can be settled by way of
cash or by allotment and issue of shares of the Company to GE
Capital on or before 25th December, 2003, for the same amount
based upon the net asset value of the Company, based on the
Company's then latest published audited or interim report (i.e.
the 2002 annual report) or the average closing price for 30 days
immediately preceding the date of the new Shares to be issued
and delivered.
As the 4th installment will be settled by cash on 15th August,
2003, the management of the Company intend to settle the 5th and
final installment earlier by allotment and
issue new Shares to GE Capital in order to lower the gearing
ratio of the Company and to fully settle the claim in the total
sum of HK$5,690,000 from GE Capital at the same time. An
aggregate of 18,351,801 new Shares at issue price of HK$0.1444
per Share will be issued to GE Capital as 5th and final
settlement of the remaining HK$2,650,000. The issue price of
HK$0.1444 per new Share is calculated based on the net asset
value of the Group divided by the total number of issued shares
as stated in the 2002 annual report of the Company, which
represents a premium of 588% to the closing price of HK$0.021
per share as quoted on the Stock Exchange on 29th July, 2003,
being the last trading day prior to the suspension of trading of
shares of the Company on 30th July, 2003.
Details of the claim in the total sum of HK$5,690,000 from GE
Capital were set out in the circular of the Company dated 21st
March, 2003. As the management of the Company had no intention
to settle the 5th and final installment by allotment and issue
of new Shares of the Company to GE Capital at the time of
dispatch of the circular of the Company dated 21st March, 2003,
the details of the Addendum to the Tomlin Order were not
disclosed in the circular of the Company. This constitutes a
breach of paragraph 2 of the Listing Agreement and as such the
Stock Exchange has expressly reserved its rights to take
appropriate action against the Company and/or its Directors.
Presently, the Company was indebted to GE Capital in the total
sum of HK$3,150,000, of which HK$500,000 being the 4th
installment will be paid off by cash and the remaining
HK$2,650,000 being the 5th and last installment is to be settled
by allotment and issue of shares of the Company to GE
Capital.
The new Shares to be issued represent approximately 1.48% of the
existing issued shares capital of the Company and approximately
1.46% of the issued share capital of the Company as enlarged by
the allotment and issue of the new Shares.
REASONS FOR THE CAPITALIZATION
The Group is engaged in the media and telecommunication
businesses.
In view of the limited working capital position of the Group,
the Directors believe that it is in the best interest of the
Company to convert the Loan into equity capital. The Directors
also consider that the Capitalization will enlarge the capital
base of the Company and will reduce the gearing level of the
Group thereby strengthening the financial position of the Group.
Application will be made by the Company to the Stock Exchange
for the granting of the listing of, and permission to deal in,
the new Shares.
Trading in the Shares on the Stock Exchange was suspended at the
request of the Company from 9:30 a.m. on 30th July, 2003 pending
the release of this announcement. Application has been made to
the Stock Exchange for the resumption of trading in Shares at
9:30 a.m. on 1st August, 2003.
DEFINITIONS
In this announcement, unless the context otherwise requires, the
following expressions shall have the following meaning:
"Addendum to the Tomlin Order" the addendum entered into between
GE Capital, renren Limited, a wholly owned subsidiary of the
Company and the Company on 18th March, 2003 in respect of the
settlement of 5th and final installment amounting to
HK$2,650,000 of the Claim
"Capitalization" the subscription of the Subscription Shares at
HK$0.1444 per Subscription Share by GE Capital under the Tomlin
Order and the Addendum to the Tomlin Order by capitalizing the
HK$2,650,000 due from the Company to GE Capital
"Claim" as at the date of the Tomlin Order and the Addendum to
the Tomlin Order, both dated 18th March, 2003, the Company was
indebted to GE Capital in the total sum of HK$5,690,000, of
which HK$3,040,000 was settled by cash
"Company" renren Holdings Limited, a company incorporated in
Bermuda with limited liability and the issued Shares of which
are listed on the main board of the Stock Exchange
"Completion" completion of the Capitalization pursuant to the
Addendum to the Tomlin Order
"Directors" directors (including the independent non-executive
directors) of the Company
"GE Capital" GE Capital (Hong Kong) Limited, a limited company
incorporated in Hong Kong
"Group" the Company and all of its subsidiaries
"Hong Kong" the Hong Kong Special Administrative Region of the
People's Republic of China
"Listing Rules" the Rules Governing the Listing of Securities on
the Stock Exchange
"new Shares" an aggregate number of 18,351,801 new Shares to be
issued to GE Capital pursuant to the Tomlin Order and the
Addendum to the Tomlin Order
"Rich Delta" Rich Delta Development Limited, a company
incorporated in the British Virgin Islands with limited
liability and the beneficial owner of 632,184,558 Shares which
represents approximately 50.98% of the entire issue share
capital of the Company
"Share(s)" ordinary share(s) of HK$0.01 each in the share
capital of the Company
"Shareholder(s) holder(s) of the Share(s)
"Sky Concord" Sky Concord Development Limited, a company
incorporated in the British Virgin Islands with limited
liability, which is wholly owned by Mak Chi Yeung and is the
beneficial owner of the entire issued share capital of Rich
Delta
"Stock Exchange" The Stock Exchange of Hong Kong Limited
"Tomlin Order" Court Order dated 18th March, 2003 issued from
the High Court of the Hong Kong Special Administrative Region to
the Company and renren Limited, a wholly owned subsidiary of the
Company
"HK$" Hong Kong dollars, the lawful currency for the time being
of Hong Kong
"%" per cent.
SEAPOWER RESOURCES: August 25 Scheme Creditors' Meeting Set
-----------------------------------------------------------
Notice is hereby given that, by an Order dated 29th July, 2003,
the High Court of the Hong Kong Special Administrative Region
Court of First Instance Miscellaneous Proceedings No. 2977 of
2003 has directed that a meeting be convened of the creditors to
whom unsecured debts are owed by Seapower Resources
International Limited (Provisional Liquidators Appointed) (other
than Many Returns Limited, creditors whose claims would be
preferential in a winding-up commenced on 12th December, 2001 to
the extent of their preferential claims and secured scheme
creditors to the extent of the agreed value of and the net
proceeds of realization of their security interests) (the
"Scheme Creditors") for the purpose of considering and, if
thought fit, approving (with or without modification) the Scheme
of Arrangement proposed to be made between the Company and the
Scheme Creditors (the "Scheme Creditors' Meeting").
The Scheme Creditors' Meeting will be held at Plaza V, Lower
Lobby, Novotel Century Hong Kong, 238 Jaffe Road, Wanchai, Hong
Kong, Special Administrative Region of the People's Republic of
China on 25th August, 2003 at 10:00 a.m. at which place and
time all Scheme Creditors are requested to attend.
A copy of the Scheme of Arrangement and a copy of the
Explanatory Statement required to be furnished pursuant to
Section 166A of the Companies Ordinance (Cap.32) are available
from the office of Cosimo Borrelli and Fan Wai Kuen, the joint
and several provisional liquidators of the Company (the
"Provisional Liquidators"), acting without personal liability,
of 7th Floor, Allied Kajima Building, 138 Gloucester Road,
Wanchai, Hong Kong, Special Administrative Region of the
People's Republic of China. These documents are available free
of charge to any person entitled to attend the Scheme Creditors'
Meeting during usual business hours on any day (other than a
Saturday afternoon, a Sunday or a statutory holiday) prior to
the day appointed for the Scheme Creditors' Meeting.
The Scheme of Arrangement will be subject to the subsequent
approval of the Court. Scheme Creditors of the Company should
submit details of any claim they have against the Company, in
writing, to the Provisional Liquidators' office before 10:00 am
on 18th August, 2003.
TELFORD STATIONERY: Winding Up Petition Hearing Set
---------------------------------------------------
The petition to wind up Telford Stationery Supplies Limited is
set for hearing before the High Court of Hong Kong on August 27,
2003 at 9:30 in the morning.
The petition was filed with the court on July 9, 2003 by Bank of
China (Hong Kong) Limited whose registered office is situated at
14th Floor, Bank of China Tower, No. 1 Garden Road, Central,
Hong Kong.
=================
I N D O N E S I A
=================
CITRA MARGA: Bondholders Agree With Bond Coupon
-----------------------------------------------
The bondholders of PT Citra Marga Nusaphala Persada (CMNP)
II/1997 bond worth Rp224 billion approved the proposal on coupon
and amortization for the debt restructuring at the bondholders
meeting held on July 31, 2002, Bisnis Indonesia reports, citing
Vice Chairman of the Indonesian Pension Fund (ADPI) Satino.
Satino said that this would extend maturity of the debt from
2004 previously to 2007. Coupon would also be 16.25% for the
first and second year while for the following two years it would
be of 16%.
Amortization was also agreed at around 15%-20% for the first two
years, 20%-25% for the third year and 35%-5% for the forth year.
Tangible networth was reduced from Rp550 billion to Rp450
billion.
"The meeting marks a conclusion in negotiation of the debt
restructuring," CMNP Director of Finance Ketut Mardjana said,
adding that the agreement signing is expected within a month.
He added his company principally wouldn't want anyone to suffer
from losses with the scheme. CMNP has always been cooperative
and always pay the coupon.
* IBRA Hosts the Second Investor Forum 2003
--------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) on Friday
announced to host the second Investor Forum on August 4th 2003
at Gran Melia Hotel, Jakarta.
The Investor Forum is aimed to provide potential investors with
detailed information on many assets sales programs as follows:
* Credit Assets Sales Program IV;
The total value of the assets on offer is Rp55.4 trillion and
the final bid will be held on August 20th 2003 for the first
batch and September 10th 2003 for the second batch.
* Property Assets Sales Program III;
The program covers the sale of 2,648 units of property assets
worth Rp2 trillion and the auction will be on August 13th 2003.
* Investment Assets sales Program III;
The program is to sell the assets derived from the shareholder
settlement (PKPS), covering the sale of shares on 130 companies
and 378 property assets. The sales program consists of 2
batches. The deadline for bid submission for the two batches is
respectively scheduled at the end of August 2003 and the end of
September 2003.
* Block sale of 20% Bank Niaga Shares;
The process will be assisted by PT Trimegah Securities as the
consultant and the final bid is scheduled for September 2003.
* Divestment Program of 52% government shares on Bank Lippo
(currently, the divestment process of Bank Lippo has entered the
stage of appointing consultant);
Divestment program of 71% government shares on Bank
International Indonesia (consultant selection process is
ongoing). IBRA has to acquire the approval from the House of
People's Representative.
The Investor Forum is aimed to inform the potential investors of
many asset disposal programs organized by IBRA. It is also
offering potential investors the opportunity to acquire a
comprehensive information directly (One on One Meeting) on many
assets being offered by IBRA. Investors' interest for
participation in this forum is quite high as about 200
participants from numerous companies and financial institutions,
both local and foreign, will take part in the event.
By organizing Investor Forum 2003, IBRA expects to provide
investors with comprehensive information who will finally assist
IBRA in achieving the contribution target to the 2003 State
Budget amounting of Rp26 trillion consisting Rp18 trillion in
cash and Rp8 trillion in bonds.
=========
J A P A N
=========
DAIEI INC.: Seeks Revival Body's Support For Fukuoka Business
-------------------------------------------------------------
Ailing retailer Daiei Inc. and its four main creditor banks are
seeking support from the Industrial Revitalization Corporation
of Japan (IRCJ) for Daiei's Fukuoka business, the Tribune
Business News reported Monday. The Fukuoka business consists of
the Fukuoka Dome baseball stadium, the adjacent Sea Hawk Hotel
and Resort, and the Fukuoka Daiei Hawks professional baseball
club. Daiei is likely to finalize a plan to sell the Fukuoka
business, with debts totaling some 120 billion yen, possibly in
October.
RESONA BANK: Deposits Drop Y2Tr in First Quarter
------------------------------------------------
Resona Holdings Inc.'s outstanding balance of deposits at its
subsidiary banks totaled 32,892.1 billion yen at the end of
June, a drop of 2,018.2 billion yen from the end of March,
reports the Tribune Business News. As nearly 80 percent of the
deposit decreases involved accounts held by domestic business
corporations, the decline also reflects their withdrawal of
money to pay back loans. The injection of public funds into
Resona Bank at the end of June is expected to raise Resona
Holdings' capital adequacy ratio from 3.78 percent at the end of
March to the lower half of the 12 percent level at the end of
September.
In addition to Resona Bank, Resona Holdings has Saitama Resona
Bank, Kinki Osaka Bank, Nara Bank and Resona Trust & Banking Co.
under its wings.
RYOKUEI GROUP: Golf Club Operator Files For Court Protection
------------------------------------------------------------
Nine units of Ryokuei Group, a Japanese golf course operator,
filed for court protection from creditors with a combined 311.1
billion yen ($2.6 billion) in obligations, according to credit
information provider Teikoku Databank. Three bankrupt units of
Ryokuei's owed Resona Holdings Inc. a combined 51.6 billion yen,
which it may not recover. Closely held Ryokuei Group runs 19
golf courses. It also operates hotels, spa resorts and a
construction Company.
SHINTOSHI FUDOSAN: Enters Special Liquidation Proceedings
---------------------------------------------------------
The Tokyo Shoko Research announced that Shintoshi Fudosan Hanbai
K.K. has filed an application for commencement of special
liquidation proceedings. The real estate firm, which is located
in Chiyoda-ku, Tokyo, Japan has total liabilities of 27.2
billion yen against a capital of 320 million yen.
TOSHIBA CORPORATION: Wins SEK100m Order From Sweden Post
--------------------------------------------------------
Toshiba Corporation wins a contract for a mail sorting system
from Sweden Post, according to Nordic Business Report on Monday.
The contract, valued at approximately SEK100m, covered eight
units of the Toshiba TT-1000 mail sorting system with integrated
optical character readers and video coding systems, Toshiba
said. The systems are to be delivered beginning in June 2004.
One Swedish krona (SEK) is worth approximately 0.08 British
pounds (GBP).
Features of Toshiba TT-1000 Mail-Sorting System
1.Acceptable Mail Size: Length: 135mm min., 250mm max.
Width: 85mm min., 170mm max.
Thickness: 0.15mm min., 6mm max.
2. Processing Capability: 36,000 mails / hour
3. Stacker Modules: 304 (in two stories)
4. Size: 7m (w) x 37m (l) x 1.7m (h)
5. Noise: 67 dB at Operator's Location
Meanwhile, Bloomberg reported that Toshiba Corporation posted a
group net loss of 36.8 billion yen for the three months ended
June 30, double its loss in the year-earlier period.
=========
K O R E A
=========
CHOHUNG BANK: Unveils US$407M Deficit in Second Quarter
-------------------------------------------------------
Chohung Bank swung into the red in the second quarter with the
deficit amounting to 482 billion won (US$407 million) due to
increased provisioning for SK Global and credit card loans,
Channel News Asia said on Monday.
The bank sharply raised the provisioning rate for SK Global to
49 percent of outstanding loans in the second quarter, from 19
percent in the first quarter, after it reclassified all SK
Global loans as bad loans on uncertainties over the trading and
oil distributing Company's outlook.
HYNIX SEMICONDUCTOR: U.S. Amends Final Countervailing Duty
----------------------------------------------------------
On June 16, 2003, the U.S. Department of Commerce issued the
Final Affirmative Countervailing Duty Determination: Dynamic
Random Access Memory Semiconductors from the Republic of Korea.
On June 23, 2003, the Department published in the Federal
Register the Final Affirmative Countervailing Duty
Determination: Dynamic Random Access Memory Semiconductors from
the Republic of Korea, 68 FR 37122. On June 24, 2003, Hynix
Semiconductors, Inc., filed allegations of ministerial errors.
On June 30, 2003, the petitioner, Micron Technologies, Inc.,
filed a response to the allegations. Based on our review of the
comments received from all parties regarding the alleged
ministerial errors, we have revised the estimated countervailing
duty rate for Hynix Semiconductors, Inc., as well as the ``All
Others'' rate. The revisions to the estimated countervailing
duty rates are listed below in the ``Amended Final
Determination'' section.
EFFECTIVE DATE: July 28, 2003.
FOR FURTHER INFORMATION CONTACT: Ryan Langan or Jesse Cortes,
Office of Antidumping/Countervailing Duty Enforcement, Group 1,
Import Administration, U.S. Department of Commerce, Room 3099,
14th Street and Constitution Avenue, N.W., Washington, D.C.
20230; telephone (202) 482-2613 and (202) 482-3986,
respectively.
SUPPLEMENTARY INFORMATION:
Scope of Investigation
The products covered by this investigation are dynamic random
access memory semiconductors (DRAMS) from the Republic of Korea
(ROK), whether assembled or unassembled. Assembled DRAMS include
all package types. Unassembled DRAMS include processed wafers,
uncut die, and cut die. Processed wafers fabricated in the ROK,
but assembled into finished semiconductors outside the ROK are
also included in the scope. Processed wafers fabricated outside
the ROK and assembled into finished semiconductors in the ROK
are not included in the scope.
The scope of this investigation additionally includes memory
modules containing DRAMS from the ROK. A memory module is a
collection of DRAMS, the sole function of which is memory.
Memory modules include single in-line processing modules, single
in-line memory modules, dual in-line memory modules, small
outline dual in-line memory modules, Rambus in-line memory
modules, and memory cards or other collections of DRAMS, whether
unmounted or mounted on a circuit board. Modules that contain
other parts that are needed to support the function of memory
are covered. Only those modules that contain additional items,
which alter the function of the module to something other than
memory, such as video graphics adapter boards and cards, are not
included in the scope. This investigation also covers future
DRAMS module types.
The scope of this investigation additionally includes, but is
not limited to, video random access memory and synchronous
graphics random access memory, as well as various types of
DRAMS, including fast page-mode, extended data-out, burst
extended data-out, synchronous dynamic RAM, Rambus DRAM, and
Double Data Rate DRAM. The scope also includes any future
density, packaging, or assembling of DRAMS. Also included in
the scope of this investigation are removable memory modules
placed on motherboards, with or without a central processing
unit, unless the importer of the motherboards certifies with the
U.S. Bureau of Customs and Border Protection (Customs) that
neither it, nor a party related to it or under contract to it,
will remove the modules from the motherboards after importation.
The scope of this investigation does not include DRAMS or memory
modules that are re-imported for repair or replacement.
The DRAMS subject to this investigation are currently
classifiable under subheadings 8542.21.8005 and 8542.21.8021
through 8542.21.8029 of the Harmonized Tariff Schedule of the
United States (HTSUS). The memory modules containing DRAMS from
the ROK, described above, are currently classifiable under
subheadings 8473.30.10.40 or 8473.30.10.80 of the HTSUS.
Removable memory modules placed on motherboards are classifiable
under subheading 8471.50.0085. Although the HTSUS subheadings
are provided for convenience and customs purposes, the
Department's written description of the scope of this
investigation remains dispositive.
Period of Investigation
The period for which we are measuring subsidies, or period of
investigation, is January 1, 2001, through June 30, 2002.
Amended Final Determination
In accordance with section 705(d) of the Tariff Act of 1930, as
amended, (the Act), on June 23, 2003, the Department published
in the Federal Register the Final Affirmative Countervailing
Duty Determination: Dynamic Random Access Memory Semiconductors
from the Republic of Korea, 68 FR 37122.
Subsequently, on June 24, 2003, Hynix Semiconductor, Inc.
(Hynix'' or ``respondent) submitted timely ministerial error
allegations pursuant to 19 CFR 351.224(c)(2). On June
30, 2003, the petitioner, Micron Technologies, Inc. (Micron),
submitted a rebuttal to Hynix' allegations.
Hynix alleged that, for certain loans, the Department
erroneously applied uncreditworthy benchmark interest rates to
financing obtained before Hynix was determined to be
uncreditworthy. The petitioner rebutted these allegations
stating that they related to methodological issues, not
ministerial issues. Additionally, the petitioner identified data
that showed that Hynix' allegations were for loans that were
refinanced and, therefore, the Department correctly used
uncreditworthy benchmark rates for these loans after the
refinancing date. Hynix further alleged that the Department used
long-term benchmark rates in the benefit calculations for three
short-term loans, which were refinanced for an additional year.
Micron claimed that this allegation is methodological, not
ministerial, and should be rejected. Hynix then alleged that the
Department erroneously included interest payments that accrued
outside of the POI in its benefit calculations. Micron argued
that this does not constitute a ministerial error because it is
solely related to the methodology used by the Department. Hynix
also alleged that the Department attributed the wrong percentage
of KDB Fast Track bonds to Hynix' creditors because of debt
conversions that occurred in June and December, 2001. Micron
claimed that this allegation constitutes a methodological error
allegation and, therefore, should be rejected by the Department.
Finally, Hynix alleged that the Department failed to include the
second of two interest payments that were made for the same bond
but were reported separately. Micron stated that there is no
evidence on the record linking the alleged second payment to the
bonds identified by Hynix and, therefore, the Department must
reject this allegation.
After analyzing the submissions, we have determined, in
accordance with section 705(e) of the Act and 19 CFR 351.224,
that we made the following ministerial errors in the margin
calculations for Hynix: 1) For certain loans, we did not use the
correct benchmark for financing obtained prior to the period
during which we found Hynix to be uncreditworthy; 2) We
incorrectly used a long-term benchmark interest rate for one
loan that was refinanced for one year; 3) For KDB Fast Track
bonds, we incorrectly calculated the percentage of these bonds
held by Hynix' creditors after June 2001, and December 2001. For
a detailed discussion of the ministerial error allegations and
the Department's analysis, see the July 21, 2003 memorandum from
Team to Laurie Parkhill, Acting Deputy Assistant Secretary
entitled Ministerial Error Allegations for the Final
Determination, which is on file in the Department's Central
Records Unit in Room B-099 of the main Department building.
Therefore, we are amending the final determination for the
countervailing duty investigation of dynamic random access
memory semiconductors from the Republic of Korea to reflect the
corrections of the above-noted ministerial errors. The revised
total estimated net subsidy rate for each Company is as follows:
Producer/Exporter Net Subsidy Rate
Hynix Semiconductor Inc. (formerly, Hyundai Electronics
Industries Co. Ltd.,) 44.29%
Samsung Electronics Co., Ltd 0.04% (de minimis)
(unchanged from the Final Determination)
Joseph A. Spetrini,
Acting Assistant Secretary for Grant Aldonas, Under Secretary.
HYUNDAI GROUP: Chief Commits Suicide
------------------------------------
Chung Mong-hun, Chairman of Hyundai Asan, jumped to his death
from the 12th floor of the conglomerate's headquarters in the
South Korean capital on Monday, the Financial Times reports. He
was awaiting trial on charges of having helped the South Korean
government transfer $100m of secret funds to North Korea shortly
before the historic inter-Korean summit in June 2000. Mr. Chung
was the son of the Hyundai Group founder Chung Ju-Yung.
Chung was accused of manipulating Hyundai's accounts to hide the
payments. Hyundai was South Korea's biggest business group until
it split up following the country's 1997 financial crisis.
Chung's brothers took control of the group's flagship car-making
and shipbuilding businesses, while he was left with a group of
mostly debt-laden and loss-making companies, including Hyundai
Asan, which operates businesses in North Korea.
Chung held a 4.9-percent stake in Hyundai Merchant, a major
shipping company, which has kept afloat the cash-strapped group.
He also owned 1.2 percent of Hyundai Corp., the group's trading
arm, and controlled four other Hyundai companies through inter-
subsidiary share ownership. With Chung's death, the group may
see a change of management structure.
SUMMARY OF EVENTS:
1992: Chung Mong-hun is jailed for collecting funds illegally
for his father Chung Ju-Yung's unsuccessful presidential
campaign.
June 2000: Historic summit between North and South Korea in
Pyongyang.
2000: Kim Dae-jung wins Nobel Peace Prize for his "Sunshine
Policy" of reconciliation with the North.
February 2003: Chung admits arranging $A847 million in payments
to North Korea to ensure the summit took place and for business
contracts.
June 2003: Indicted on charges of secretly paying North Korea.
August 4: Commits suicide
KOOKMIN BANK: Secures Y2B Club Loan
-----------------------------------
Kookmin Bank has secured a two billion-yen club loan from a
syndicate of seven banks, including Bayerische Landesbank, DBS
Bank, HSH NOrdbank, KBC Bank and Mitsui Banking Corp, according
to BasisPoint. The loan comprises three- and five-year tranches
and was signed on August 1.
SK GLOBAL: Accepts 43 Cents on the Dollar
-----------------------------------------
SK Global's foreign creditors agreed to accept 43 cents for
every dollar owned to avoid court receivership, DebtTraders
reports. Foreign creditors may receive a further 3 to 5 cents
depending their participation in a revival plan organized by
domestic creditors. Standard Chartered and other foreign
creditors held $630 million of debt guaranteed by SK Global.
SK GLOBAL: Domestic Creditors Approve Receivership
--------------------------------------------------
Despite opposition from foreign creditors, Hana Bank, together
with other South Korean Creditors, endorsed a plan on July 24,
2003, to put South Korea's fourth-largest business group, SK
Global Co. under court receivership.
Court receivership usually freezes an ailing firm's debt
repayment until the court decides whether to liquidate the
Company or not, an Agence France-Presse reporter explains.
According to Kim Seung Yu, chief executive of Hana Bank, the
plan was approved by 80.8 percent of domestic creditors at a
meeting attended by some foreign creditors. The receivership
plan calls for domestic creditors to buy out 1.7 trillion won of
the debt to be rescheduled at 28 percent of the principal. The
creditors would convert 23.57 percent of the remainder into
equity.
Mr. Kim says Hana can't stand back and allow SK Global's value
to deteriorate. Moreover, court receivership is inevitable
because domestic and foreign creditors disagree on how to rescue
SK Global.
Mr. Kim estimates that Korean creditors would recoup two cents
less in every dollar, or 133 billion won, owed by SK Global by
forcing it into receivership, as opposed to negotiating a deal
with overseas creditors.
Overseas creditors, demanding full payment of the $630,000,000
of debt guaranteed by SK Global as of June 30, oppose
receivership and will attempt to negotiate with domestic
lenders.
Guy Isherwood, leader of the overseas creditors' steering
committee, insisted that foreign creditors had been left out of
discussions and treated unfairly. Mr. Isherwood argues that if
foreign creditors' legal rights are prejudiced, the cost of
loans to other Korean companies may rise, not to mention the
possibility of further legal action.
Sovereign Asset Management Ltd., a Monaco-based fund, is the
largest shareholder of SK Corp. and, in turn, the biggest
shareholder of SK Global. Sovereign Asset Management called for
liquidation of the trading Company.
Agence France-Presse further reports that Korean creditors have
put pressure on London-based Standard Chartered Plc. and other
foreign lenders to accept a bailout of the unit of SK Global.
Overseas banks are given two weeks to agree, avoiding SK Global
being put under court control.
Additionally, SK Corp. is pressured to contribute 850 billion
won or $720,000,0000 to the rescue efforts by swapping debt owed
by SK Global to SK Corp. into equity. SK Corp., however, agreed
to the swap on the condition that creditors help revive SK
Global.
In this vein, Hana Bank seeks to revive SK Global's domestic
operations through debt rescheduling and the liquidation of its
activities abroad.
SK Global has already sought to liquidate its subsidiaries in
Hong Kong and the United States in response to individual legal
actions by some creditors to recover their loans.
Court receivership will be filed in two weeks and Mr. Kim
suggests that SK Corp. approve the new debt-restructuring plan
demanded by creditors.
SK Corp.'s board members will convene a meeting to discuss the
swap issue once the local creditors file in court.
Korean and Foreign Creditors Negotiate
On the eve of a major July 29, 2003 meeting between SK Global's
domestic and foreign creditors, Guy Isherwood, head of overseas'
creditors' steering committee, hinted they may change their
earlier demand for full payment.
"Foreign Creditors just might support the buyout offer," Sangim
Han of Bloomberg News reported.
Korean creditors will put Korea's No. 4 industrial group under
court control in two weeks if overseas creditors did not agree
to their proposals. (SK GLOBAL BANKRUPTCY NEWS, Issue Number 2,
July 30, 2003)
SK GLOBAL: Meeting With US Trustee to Form Committees
-----------------------------------------------------
The United States Trustee for Region 2 calls for a meeting of SK
Global America, Inc.'s 20-largest unsecured creditors on
August 11, 2002 at 2:00 p.m. in The Office of the United States
Trustee, located at 80 Broad Street, 2nd Floor, New York.
SK Global America is a subsidiary of South Korean SK Global Co.,
Ltd., one of the world's leading trading companies.
The purpose of this meeting is to form an official committee of
unsecured creditors. Creditors interested in serving on a
committee should complete and return a statement indicating
their willingness to serve on an official committee.
Official creditors' committees, constituted under 11 U.S.C. Sec.
1102, ordinarily consist of the seven largest creditors who are
willing to serve on a committee. In some Chapter 11 cases, the
U.S. Trustee is persuaded to appoint multiple creditors'
committees.
Official committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtor's
expense. They may investigate the Debtor's business and
financial affairs. Importantly, official committees serve as
fiduciaries to the general population of creditors they
represent. Those committees will also attempt to negotiate the
terms of a consensual Chapter 11 plan -- almost always subject
to the terms of strict confidentiality agreements with the
Debtor and other core parties-in-interest. If negotiations
break down, the Committee may ask the Bankruptcy Court to
replace management with an independent trustee. If the
Committee concludes that reorganization of the Debtor is
impossible, the Committee will urge the Bankruptcy Court to
convert the Chapter 11 case to a liquidation proceeding.
Immediately following the U.S. Trustee's determinations about
how many official committees will be appointed and who will be
appointed to each committee, the newly formed committees will
convene their initial meeting. The first order of business is
to listen to the U.S. Trustee explain the powers and duties of
the committee as a whole and the members' individual
responsibilities. The Committee will generally elect a
chairman.
Thereafter, the Committee typically conducts beauty pageants to
select their legal and financial advisors. (SK GLOBAL BANKRUPTCY
NEWS, Issue Number 2, July 30, 2003)
===============
M A L A Y S I A
===============
ABRAR CORPORATION: Provides Regularization Exercise Update
----------------------------------------------------------
In compliance with paragraph 4.1(b) of PN 4/2001, Abrar
Corporation Berhad (Special Administrators Appointed) wishes to
announce the following:
On 10 January 2002, the Special Administrators (the SAs) of the
Company held a briefing for interested parties with strong
assets backing and management expertise on the tender procedure
for the submission of offers / proposals on the restructuring
exercise of the Company. The interested parties were required to
submit the offers / proposals by 23 January 2002.
On 6 March 2002, the SAs conducted a restricted re-tender
exercise for the two (2) shortlisted bidders who were required
to submit their revised offers / proposals by 13 March 2002. On
15 April 2002, the SAs of the Company selected a White Knight to
participate in the corporate debt restructuring exercise of the
Company.
On 16 May 2002, the SAs, for and on behalf of ACB, entered into
a Memorandum of Understanding (MoU) with several parties "the
White Knight) to regulate and record the basic understanding of
the key areas of agreement pending finalization and approval of
the Company's corporate restructuring proposal (the Workout
Proposal).
On 23 May 2002, the Company announced that the moratorium under
Section 41 of the Pengurusan Danaharta Nasional Berhad Act, 1998
(the Danaharta Act), which took effect from 27 May 2000, i.e.
the date of the appointment of SAs to the Company and which
expires on 26 May 2002, has been further extended to 26 May
2003, pursuant to Section 41(3) of the Danaharta Act.
On 11 July 2002, the SAs entered into a Facilitation of Listing
Agreement with OilCorp Berhad and with the White Knight pursuant
to the MoU dated 16 May 2002 inter alia to transfer the listing
status of the Company to OilCorp Berhad.
On 29 August 2002, Public Merchant Bank Berhad (PMBB), on behalf
of the Company, announced that the quantum and structure of the
proposed offer for sale of OilCorp Shares (Proposed Offer for
Sale) have been finalized. The Proposed Offer for Sale shall
involve an offer for sale of 43,900,000 ordinary shares of
RM1.00 each in OilCorp (OilCorp Shares) at an offer price of
RM1.10 by the creditors of ACB and the vendors of Oil-Line
Engineering & Associates Sdn Bhd (Oil-Line).
On 2 September 2002, PMBB, on behalf of the Company, announced
that the Company's corporate debt restructuring proposal
(Proposed Restructuring Scheme has been submitted to the
Securities Commission for approval.
On 16 October 2002, PMBB, on behalf of the Company, announced
that the Foreign Investment Committee (FIC) had, via its letter
received on 15 October 2002, approved the Proposed Share
Exchange, the Proposed Debt Settlement, the Proposed Acquisition
and the Proposed Offer for Sale as proposed. The FIC's approval
is subject to OilCorp Berhad having a 30% direct Bumiputera
equity interest upon the implementation of the Proposed
Restructuring Scheme.
On 1 November 2002, PMBB, on behalf of the Company, announced
that the Workout Proposal for Danaharta in accordance with
Section 45(2) of the Danaharta Act approved ACB via its letter
dated 28 October 2002. Under Section 46(4) of the Danaharta Act,
the Workout Proposal binds the Company, all members and
creditors of the Company and any other person affected by the
Workout Proposal.
On 21 November 2002, PMBB, on behalf of the Company, announced
that all the relevant parties to the Facilitation of Listing
Agreement dated 11 July 2002 have agreed to extend all the
approvals that are to be obtained before 12 November 2002 to 11
January 2003.
On 23 December 2002, PMBB, on behalf of the Company, announced
that the Securities Commission had via its letters dated 18
December 2002 and 20 December 2002 approved the Company's
Proposed Restructuring Scheme as proposed, subject to certain
conditions to be fulfilled.
On 14 January 2003, PMBB, on behalf of the Company, announced
that the Company, OilCorp Berhad and the relevant parties to the
Company's Proposed Restructuring Scheme had deliberated on the
Securities Commission's decision and conditions imposed on the
Proposed Restructuring Scheme and had agreed to accept the
Securities Commission's decision and conditions imposed.
On 21 January 2003, PMBB, on behalf of the Company, announced
that the relevant parties to the Share Sale Agreements of the
Proposed Acquisitions, and the Listing Agreement have agreed to
extend the date of which the parties were to obtain all
approvals for the Proposed Restructuring Scheme to 11 March
2003.
On 17 February 2003, the SAs appointed an audit firm; Messrs.
Shamsir Jasani Grant Thornton to conduct an investigative audit
on the Company, in compliance with the conditions imposed by the
Securities Commission in approving the Company's Proposed
Restructuring Scheme via its letters dated 18 December 2002 and
20 December 2002.
On 26 February 2003, PMBB, on behalf of the Company, announced
inter alia that ACB and Oil-Line have proposed to modify the
Proposed Offer For Sale to 44,000,000 OilCorp Shares (the
Proposed OFS Modification) at an offer price of RM1.10 per
share.
On 27 March 2003, PMBB, on behalf of the Company, announced that
ACB and Oil-Line have proposed to further modify the Proposed
Offer For Sale to 44,161,000 OilCorp Shares at an offer price of
RM1.10 per share and an application with regards to the
variation to the Proposed OFS Modification was subsequently made
to the Securities Commission.
On 29 April 2003, PMBB, on behalf of the Company, announced that
ACB and Oil-Line have proposed to modify the allocation of
15,000,000 OilCorp Shares (the Proposed Allocation) to
Bumiputera investors (the Proposed Modification) to be approved
by Ministry of International Trade and Industry (MITI). The
Proposed Modification now involves the allocation of the OilCorp
Shares to public investors to be identified via private
placement.
On 27 May 2003, the Company announced that the moratorium under
Section 41 of the Danaharta Act, which took effect from 27 May
2000, i.e. the date of appointment of SAs to the Company and
which expires on 26 May 2003, has been further extended to 26
May 2004. The extension of the moratorium is pursuant to Section
41(3) of the Danaharta Act.
On 28 May 2003, PMBB, on behalf of the Company, announced inter
alia that:
1. the Securities Commission had via its letter dated 27 May
2003 approved the Proposed OFS Modification as proposed;
2. the FIC had via its letter dated 27 May 2003 approved the
Proposed OFS Modification as proposed, subject to OilCorp Berhad
having a 30% direct Bumiputera equity interests in OilCorp
Berhad upon listing on the Main Board of the Exchange; and
3. MITI had via its letter dated 27 May 2003 approved the
Proposed Allocation of 15,000,000 OilCorp Shares to public
investors via private placement instead of to Bumiputera
investors to be identified by MITI, subject to approvals being
obtained from the Securities Commission and the FIC.
On 29 May 2003, PMBB, on behalf of the Company, announced that
the relevant parties to the Share Sale Agreements of the
Proposed Acquisitions, and the Listing Agreement have agreed to
extend the date of which the parties were to obtain all
approvals for the Proposed Restructuring Scheme to 30 June 2003.
On 13 June 2003, PMBB, on behalf of the Company, announced that
the Securities Commission had via its letter dated 11 June 2003
approved the Company's application to extend the period for
implementation of the Proposed Restructuring Scheme for an
additional six (6) months to 18 December 2003.
On 17 June 2003, PMBB, on behalf of the Company, announced that
the Register of Depositors of ACB will be closed on 24 June 2003
for the purposes of implementing the Company's Proposed
Restructuring Scheme.
On 18 June 2003, the Information Circular in relation to the
Company's Proposed Restructuring Scheme was issued to the
Company's Shareholders.
On 30 June 2003, the Prospectus in conjunction with the listing
of OilCorp Berhad, which is taking over the Listing Status of
the Company on the Main Board of the Exchange, was issued. The
OilCorp Berhad shares are expected to be listed on the Main
Board of the Exchange on 5 August 2003.
On 4 July 2003, PMBB announced that the Creditors' Agent had on
30 June 2003 entered into a Call Option Agreement and a Put
Option Agreement with Ng Huat Tian, Haji Ahmad Bin Jamaludin,
Azaruddin Bin Ahmad and Pua Yow Liang (Option Shareholders).
The salient terms of the Call Option Agreement include, inter-
alia, the following:
1.The Creditors' Agent irrevocably grants to the Option
Shareholders the option to purchase such number of Option Shares
in multiples of 1,000,000 at each time, free from all liens,
charges and all other encumbrances, and with all rights
attaching thereto as at the exercise date, at the call option
price of RM1.10 per Option Share plus a holding cost of 3% per
annum, on the exercise of which the Creditors' Agent shall
become bound to sell and the Option Shareholders shall become
bound to complete the purchase of all (and not part only) of the
stipulated number of the Option Shares.
2. The Call Option may be exercised by the Option
Shareholders any time during the call option period, being the
period commencing from the date the Creditors' OilCorp Shares
are issued and allotted to the creditors of ACB through the
Creditors' Agent pursuant to the Debt Settlement up to the last
day of the ninth (9th) month from such date ("Call Option
Period") provided always that the Call Option shall be
exercisable only on that portion of Option Shares not already
acquired by the Option Shareholders pursuant to an exercise of a
Call Option and only during the Call Option Period, failing
which the Call Option will lapse and cease to have any further
effect.
3. The Creditors' Agent undertakes that for the duration of
the Call Option Period, the Creditors' Agent shall not dispose
of the Option Shares.
The salient terms of the Put Option Agreement include, inter-
alia, the following:
1. The Option Shareholders irrevocably grant to the
Creditors' Agent the option to require the Option Shareholders
to purchase such number of Option Shares in multiples of
1,000,000 at each time, free from all liens, charges and all
other encumbrances, and with all rights attaching thereto as at
the exercise date, at the put option price of RM1.10 per Option
Share not called pursuant to the Call Option plus a holding cost
of 3% per annum, on the exercise of which the Option
Shareholders shall become bound to purchase and the Creditors'
Agent shall become bound to complete the sale of all (and not
part only) of the stipulated number of the Option Shares.
2. The Put Option may be exercised by the Creditors' Agent
any time during the put option period, being the period
commencing on the day immediately after the expiry of the Call
Option Period up to the last day of the ninth (9th) month from
such date (Put Option Period) provided always that the Put
Option shall be exercisable only on that portion of Option
Shares not already acquired by the Option Shareholders pursuant
to an exercise of a Put Option or Call Option and only during
the Put Option Period, failing which the Put Option will lapse
and cease to have any further effect.
The Call Option Agreement and the Put Option Agreement are
inter-conditional. Further, the Call Option Agreement and the
Put Option Agreement are also conditional upon the completion of
the Facilitation of Listing Agreement, and the share sale
agreements dated 11 July 2003 for the acquisitions by OilCorp of
Oil-Line and Ascentland.
The Option Shareholders had agreed to create, as registered
and/or legal and/or beneficial owner a first legal charge over
20,000,000 OilCorp Shares held by the Option Shareholders (save
and except for Haji Ahmad bin Jamaludin and Azaruddin bin
Ahmad) and PHSB, with the Creditors' Agent, as security for its
obligations under the Call and Put Option.
In the meantime, the Exchange had via its letter dated 1 August
2003 noted that ACB has completed its Proposed Restructuring
Scheme pursuant to Practice Note 4/2001. Pursuant to the scheme,
ACB will be de-listed from the Official List of the Main Board
of the Exchange and OilCorp Berhad will be admitted to the
Official List of the Main Board of the Exchange in place of ACB.
Therefore, ACB is no longer required to comply with the
obligations under PN4/2001.
The transfer of the Company's Listing Status to OilCorp Berhad
forms part of the Company's Workout Proposal and the Proposed
Restructuring Scheme including the subsequent liquidation of the
Company.
AKTIF LIFESTYLE: KLSE Grants Two-Month RA Extension
---------------------------------------------------
On behalf of the Board of Directors of Aktif Lifestyle
Corporation Berhad, Southern Investment Bank Berhad wishes to
announce that the Company had received a letter dated 1 August
2003 from the KLSE approving an extension of time of two (2)
months from 8 July 2003 to 7 September 2003 for Aktif to make
its Requisite Announcement.
SIBB also wishes to announce that Aktif is still in the midst of
negotiations with the major lenders of Aktif (Creditors) to
reach mutual agreements on specific requests made by the
Creditors in relation to Aktif's proposed restructuring scheme.
The Company will inform its shareholders of any pertinent
development on the proposed restructuring scheme.
EPE POWER: July Defaulted Interest, Principal Hits RM719,484
------------------------------------------------------------
EPE Power Corporation Berhad refers to the announcement made by
Commerce International Merchant Bankers Berhad (CIMB) on behalf
of EPE dated 30 April 2003 in relation to the Proposed EPE
Restructuring Scheme.
EPE wishes to announce that the Proposed Restructuring Scheme
has been submitted to the Securities Commission, Foreign
Investment Committee and Ministry of International Trade and
Industry for their approvals on 28 June 2003, in compliance with
Practice Note 4/2001 of the Listing Requirements of the Kuala
Lumpur Stock Exchange.
Also with regards to PN1 obligation, EPE wishes to inform that
the Company has further defaulted in the payment of monthly
interest of RM719,484.10 due to several financial institutions
(FIs) under its revolving credit (RC) facilities.
GENERAL LUMBER: MIB Shares Admitted to KLSE Official List
---------------------------------------------------------
In relation to the Approval In-Principle for the Admission to
the Official List of the Kuala Lumpur Stock Exchange and the
Listing of and Quotation for the Ordinary Shares of RM0.50 Each
in Maxtral Industry Berhad (MIB) and Irredeemable Convertible
Preference Shares of RM0.10 Each in MIB (ICPS) on the Second
Board of the KLSE.
PM Securities Sdn Bhd, on behalf of the Board of Directors of
General Lumber Fabricators & Builders Bhd is pleased to announce
that the KLSE had on 30 July 2003, given its approval in-
principle for admission to the Official List of the KLSE and the
listing and quotation of the entire issued and paid-up share
capital of MIB of up to RM91,256,207 comprising up to
152,989,214 ordinary shares of RM0.50 each in MIB (MIB Shares)
and up to 147,616,000 ICPS to be issued pursuant to the Proposed
Restructuring Scheme of GLFB and up to 147,616,000 MIB Shares to
be issued pursuant to the conversion of the ICPS on the Second
Board of the KLSE.
Apart from the above, there has been no material development on
the status of the Proposed Restructuring Scheme of GLFB.
KIARA EMAS: Court OKs Proposed Shareholders', Creditors' Scheme
---------------------------------------------------------------
Reference is made to Kiara Emas Asia Industries Berhad's
Proposals consisting of:
i. Proposed Shareholders' Scheme
ii. Proposed Creditors' Scheme
iii. Proposed Disposal
iv. Proposed Acquisition
v. Proposed Special Issue
vi. Proposed Restricted Issue
vii. Proposed Mandatory Offer
viii. Proposed Transfer Of Listing Status
(hereinafter collectively referred to as the "Proposals")
ix. Proposed Exemption
On behalf of Kiara Emas, AmMerchant Bank Berhad wishes to
announce that the Company has, on 31 July 2003, obtained the
High Court's sanction in respect of the Proposed Shareholders'
Scheme and the Proposed Creditors' Scheme.
A copy of the Court order will be lodged with the Companies
Commission of Malaysia in due course.
KRAMAT TIN: Continuing New Core Business Search
-----------------------------------------------
Pursuant to the announcement dated 31 July 2003, the Board of
Directors of Kramat Tin Dredging Berhad wishes to inform that
the Company is currently continuing its efforts in identifying a
suitable new core business, the implementation of which will
enable KTD to ensure a level of operations that is adequate to
warrant continued trading and/or listing on the Official List.
The Troubled Company Reporter - Asia Pacific reported this week
that the Kuala Lumpur Stock Exchange has granted KTD an
extension of three (3) months from 5 July 2003 to 6 October 2003
to make its Requisite Announcement under PN10 to the Exchange
for public release.
KUMPULAN HARTANAH: Subsidiary Faces Winding-Up Petition
-------------------------------------------------------
Kumpulan Hartanah Selangor Berhad announced that a Winding-Up
Petition pursuant to Section 218 of the Companies Act, 1965 was
served on SAP Air Hitam Properties Sdn Bhd (SAP Air Hitam), a
100% owned subsidiary company of SAP Holdings Berhad (SAP) which
in turn is a wholly owned subsidiary of KHSB on 31July 2003 by
the Petitioner, Bekal Cepat Sdn Bhd at the registered office of
Lot 1A, Level 1A, Plaza Perangsang, Persiaran Perbandaran,40000
Shah Alam, Selangor Darul Ehsan.
The Petitioner, Bekal Cepat Sdn Bhd alleging that SAP Air Hitam
is indebted to the Petitioner in the sum of RM66,505-81 and cost
of RM2,000-00 pursuant to Judgment dated 19 March 2003 via Kuala
Lumpur Sessions Court Summons No. 8-52-10755-2001.
The solicitors for the Petitioners has on 13 May 2003 in
accordance with Section 218 of the Companies Act, 1965 served a
Notice for the outstanding sum dated 8 May 2003 on SAP Air Hitam
at its registered office of Lot 1A, Level 1A, Plaza Perangsang,
Persiaran Perbandaran,40000 Shah Alam, Selangor Darul Ehsan.
The Company furnishes the information as required by the
Exchange for public release:
1. We received a Winding-Up Petition which was presented via
Kuala Lumpur High Court Companies Winding-Up Petition No. D6-28-
688-2003 on 31 July 2003.
2. The total amount claimed under the petition is RM68,505-81
being the judgment sum and cost.
3. The total cost of investment in SAP Air Hitam by KHSB
through SAP is RM500,000-00.
4. The Company does not foresee the amount claimed to have
any financial nor operational impact on the Group.
5. Apart from the amount claimed, the Company does not
foresee any further losses except for legal cost in which the
Company needs to pay the petitioner's solicitors as well its
ours.
6. KHSB is taking the necessary steps to resist the Winding-Up
Petition.
7. The Petition will be heard on 1 October 2003
MALAYSIAN RESOURCES: Unit Inks JVSA With ST, ES
-----------------------------------------------
The Board of Directors of Malaysian Resources Corporation Berhad
is pleased to announce that its wholly-owned subsidiary, MRCB
Environmental Services Sdn Bhd, (MES), formerly known as
Amirijaya Sdn Bhd has entered on Monday into a Joint Venture and
Shareholders Agreement (JVSA) with Saluran Teraju Sdn Bhd (ST)
and Everlasting Sparkle Sdn Bhd (ES).
MRCB Environment Sdn Bhd (ME), formerly known as Digiwill Sdn
Bhd, a wholly-owned subsidiary of MES has been identified to be
the joint venture vehicle for the provision of environmental
management services. ME was incorporated on 14 November 2000.
The authorized share capital of ME is RM100,000.00 comprising of
100,000 ordinary shares of RM1.00 each of which 2 shares have
been issued and fully paid-up. The paid-up share capital of ME
will be increased to RM100,000.00 to be subscribed by the joint
venture parties in the following proportion:
MES - 55%
ST - 27%
ES - 18%
MES was incorporated on 23 November 2000. The authorized share
capital of ST is RM100,000.00 comprising of 100,000 ordinary
shares of RM1.00 each of which 2 shares have been issued and
fully paid-up. MES is primarily involved in the business of
providing services in relation to the implementation and
development of integrated environmental management and general
pollution prevention services.
ST was incorporated on 30 June 2000. The authorized share
capital of ST is RM100,000.00 comprising of 100,000 ordinary
shares of RM1.00 each of which 100 shares have been issued and
fully paid-up. ST is involved in the study, development and
implementation of environmental engineering in Malaysia.
ES was incorporated on 14 January 2000. The authorized share
capital of ES is RM100,000.00 comprising of 100,000 ordinary
shares of RM1.00 each of which 2 shares have been issued and
fully paid-up. ES is a general investment company.
None of the Directors nor persons connected with the Directors
of MRCB and substantial shareholders of MRCB have any interest,
direct or indirect in the joint venture.
The Troubled Company Reporter - Asia Pacific reported that the
High Court of Malaya (Court) on 8 July 2003 gave its sanction
for MRCB to undertake the Demerger of MRCB and Media Prima
Berhad (being the company that will assume the listing status of
Sistem Televisyen Malaysia Berhad) (Demerger) pursuant to the
Proposed Corporate Restructuring Scheme.
MBF CAPITAL: Capital Reduction Books Closure Set on Aug 11
----------------------------------------------------------
On behalf of the Board of Directors of MBf Capital Berhad,
Alliance Merchant Bank Berhad is pleased to announce the books
closure date in relation to the following:
Reconstruction of the share capital of MBf Capital pursuant to a
scheme of arrangement and reconstruction involving the
following:
* The capital reduction of the existing issued and paid-up
share capital of MBf Capital from RM782,314,000 comprising
782,314,000 ordinary shares of RM1.00 each to RM19,557,850
comprising 782,314,000 ordinary shares of RM0.025 each via the
cancellation of RM0.975 from each existing ordinary share of
RM1.00 par value in MBf Capital (Capital Reduction);
* The issuance of 19,557,850 consolidated shares of RM1.00
each in MBf Capital (Consolidated MBf Capital Share(s)) on the
basis of one (1) Consolidated MBf Capital Share for every forty
(40) resultant ordinary shares of RM0.025 each after the Capital
Reduction (Share Consolidation); and
* The share exchange of 19,557,850 Consolidated MBf Capital
Shares for 19,557,850 new ordinary shares of RM1.00 each in MBf
Corporation Berhad (MBf Corporation) (New MBf Corporation
Share(s)) on the basis of one (1) New MBf Corporation Share for
each Consolidated MBf Capital Share held by the existing
shareholders of MBf Capital after the Capital Reduction and
Share Consolidation (Share Exchange).
NOTICE IS HEREBY GIVEN THAT the shareholders of MBf Capital
registered on the Record of Depositors and the Record of Members
of MBf Capital as at 11 August 2003 will be entitled to the New
MBf Corporation Shares pursuant to the Capital Reduction, Share
Consolidation and Share Exchange.
FURTHER NOTICE IS HEREBY GIVEN THAT a Depositor shall qualify
for entitlement to the new MBf Corporation Shares only in
respect of the MBf Capital shares transferred into the
respective depositors' securities accounts before 4:00 p.m. on
11 August 2003 in respect of the ordinary transfer.
Shareholders are reminded that pursuant to Section 29 of the
Securities Industry (Central Depositories) (Amendment) (No. 2)
Act 1998, shareholders who held undeposited securities were
required to deposit their shares with the Malaysian Central
Depository Sdn Bhd (MCD) by 1 December 1998 unless otherwise
exempted from the mandatory deposit requirement. All shares not
deposited with MCD by 1 December 1998 would have been
transferred to the Ministry of Finance (MOF). For the purpose of
the Capital Reduction, Share Consolidation and Share Exchange,
all such shares transferred to the MOF shall be recalled for
cancellation, consolidation and subsequent share exchange upon
completion of the Capital Reduction, Share Consolidation and
Share Exchange.
The existing MBf Capital shares were last traded on 4 February
2002 and trading of the same has remained suspended. The
suspension of trading of the existing MBf Capital shares will
continue until the admission to the Official List and listing of
and quotation of all the new MBf Corporation shares arising from
the Share Exchange and other exercises which are integral to the
scheme of arrangement and reconstruction as detailed in the
Explanatory Statement-cum-Circular to Shareholders dated 28
April 2003.
Any enquiries concerning the notice of books closure should be
addressed to the Company's share registrar, Insurban Corporate
Services Sdn Bhd (76260-W), located at No. 149, Jalan Aminuddin
Baki, Taman Tun Dr. Ismail, 60000 Kuala Lumpur (Tel.No. : 03-
7729 5529/7727 3873, Fax No.: 7728 5948).
NAUTICALINK BHD: Likely to Meet Proposals Submission Deadline
-------------------------------------------------------------
Since Nauticalink Berhad's last announcement made on 3 July 2003
in compliance with PN4, there have been positive developments in
the Company coming up with corporate restructuring proposals as
announced on 14 July 2003 post requisite announcement (RA).
Additionally, NB's appeal against de-listing of its securities
from the Official List of the Kuala Lumpur Stock Exchange has
also met with some success as announced on 25 July 2003. To
reiterate, the KLSE has granted NB an extension of time of
fourteen (14) days for the Company to submit its regularization
plans to the relevant authorities for approval.
Currently, the Company and its Advisers are in the process of
finalization of the corporate restructuring proposals. In this
respect, the Directors are confident of meeting the deadline
given by the Exchange for submission.
NCK CORPORATION: July Default in Payment Narrows to RM170.479M
--------------------------------------------------------------
In compliance with Practice Note 1/2001, NCK Corporation Berhad
(Special Administrators Appointed) wishes to announce the
following with regards to the status of credit facilities on
which the NCK Group has defaulted in payment since the Company's
previous announcement dated 2 July 2003.
Total borrowings on which the NCK Group has defaulted in payment
stood at RM170,479,910 as at 31 July 2003 compared to
RM438,675,165 as at 30 June 2003, a reduction of RM268,195,255
attributed to the following:
RM
Borrowings as at 30 June 2003 438,675,165
Add : Interest accrued for the month of July 2003 1,049,748
Less : Reduction in borrowings attributed to
deconsolidation of subsidiary companies
(see table below) (269,245,003)
Borrowings as at 31 July 2003 170,479,910
Borrowings of subsidiaries which have been deconsolidated are as
follows:
RM
Ng Choo Kwan & Sons Hardware Sdn Berhad
(NCK Hardware) (134,472,416)
Fook Chuan Trading Sdn Bhd (FCT) (30,493,468)
NCK Aluminium Extrusion Sdn Bhd (NCK Aluminium) (49,408,365)
NCK Marketing Sdn Bhd (NCK Marketing) (12,634,259)
NCK Metal Sdn Bhd (NCK Metal) (42,236,495)
Total (269,245,003)
(Note: NCK Marketing is a 100% owned subsidiary of NCK
Aluminium)
As announced to the KLSE on 1 July 2003, the Proposed Disposal
of NCK Metal has been completed on 30 June 2003, and the Special
Administrators released from their appointment on that same
date.
NCK also announced to the KLSE on 4 July 2003 that the Special
Administrators have also been released from their appointments
in NCK Hardware, FCT and NCK Aluminium on 4 July 2003. These 3
subsidiary companies have been placed under Provisional
Liquidation on 4 July 2003 and Messrs Lim Tian Huat and Adam
Primus Varghese bin Abdullah of Messrs Ernst & Young were
appointed as Provisional Liquidators on that same date.
Subsequently on 29 July 2003, Messrs Lim Tian Huat and Adam
Primus Varghese bin Abdullah were appointed Liquidators of the 3
companies via 3 separate Meetings of Creditors.
The banking facilities of the above subsidiaries totaling
RM269,245,003 have been secured by Corporate Guarantees of NCK
Corporation Berhad and have accordingly been reflected as
Provision for Liabilities in the Balance Sheet of NCK.
PLANTATION & DEVT: Awaits SC's Abridged Prospectus Decision
-----------------------------------------------------------
Reference is made to the circular to the shareholders of
Plantation & Development (Malaysia) Berhad dated 7 May 2003 in
respect of the application to the Securities Commission (SC) for
the disbursement for free of RM100,000 nominal value of Fountain
View Irredeemable Convertible Unsecured Loan Stocks (ICULS) by
Mujur Zaman Properties Sdn Bhd, to at least 100 selected persons
(Disbursement).
AmMerchant Bank Berhad, on behalf of P&D, wishes to announce to
the Kuala Lumpur Stock Exchange that the SC had approved the
application subject to the condition that a prospectus has to be
issued in relation to the proposed issuance of Fountain View
ICULS and the subsequent Disbursement.
Subsequent to deliberation on the aforesaid condition imposed by
the SC, P&D had submitted an application to the SC, for a
variation to the condition. In lieu of issuance of a prospectus,
P&D had sought to indulgence of the SC for allowing the issuance
of an abridged prospectus. The decision of the SC is pending as
at the date of this announcement.
There are no other material developments in the Proposed
Restructuring Scheme of P&D subsequent to the announcements
dated 1 July 2003 and 11 July 2003.
RENONG BERHAD: Inks Supplemental Agreements With UEM
----------------------------------------------------
Renong Berhad refers to the Proposed Scheme of Arrangement Under
Section 176 of the Companies Act, 1965 (Proposed SOA), inter-
alia, the Second Supplemental Agreement for the Amendments to
the Global Bond Certificate and the Conditions (SA) between
Renong Debt Management Sdn Bhd (Renong SPV), a subsidiary of
Renong, and United Engineers (Malaysia) Berhad (UEM), and the
Listed Securities Swap Agreement (LSSA) between the Company and
UEM.
On behalf of Renong, Commerce International Merchant Bankers
Berhad wishes to announce that further to the SA and LSSA
entered into between the parties therein, the following
agreements were entered into on 1 August 2003:
i) Third Supplemental Agreement for the Amendments to the
Global Bond Certificate and the Conditions between Renong SPV
and UEM (TSA); and
ii) Supplemental Agreement to the LSSA between the Company and
UEM .
The TSA and Supplemental Agreement to the LSSA were entered into
to revise certain terms and conditions of the SA and LSSA as a
result of the disposal by Fleet Group Sdn Bhd (Fleet Group), a
wholly-owned subsidiary of Renong, of 158,000,000 ordinary
shares of RM1.00 each in Commerce Asset-Holding Berhad (CAHB
Shares) for a total cash consideration of RM594.08 million
(Disposal). The 158,000,000 CAHB Shares form part of the
securities to be disposed of to UEM pursuant to the LSSA.
Details of the Disposal have been set out in the announcement
dated 8 July 2003.
Pursuant to the Supplemental Agreement to the LSSA, the
remaining 128,152,326 CAHB Shares held by Renong through Fleet
Group shall be transferred to UEM for a total consideration of
RM399,835,257, being the existing consideration as stipulated in
the LSSA based on RM3.12 per CAHB Share. The revised list of
securities to be transferred to UEM pursuant to the Supplemental
Agreement to the LSSA are set out in Table 1 at
http://bankrupt.com/misc/TCRAP_Renong0806.gif.
Pursuant to the TSA, the proceeds from the Disposal and other
proceeds that may be received by Renong for the disposal of any
of the listed securities or part thereof as set out in Table 1
to third parties at any time prior to the completion of the
proposed partial settlement of the SPV Bond which includes the
proposed restructuring of the outstanding balance of the same
shall, after deducting all relevant expenses, be for the account
of Renong and utilized solely towards the settlement of the SPV
Bond. However, there shall be no revision to the yield-to-
maturity for such corresponding value of SPV Bond to be redeemed
from proceeds received from the aforesaid Disposal and other
disposals, which shall remain at 9.4% compounded semi-annually.
The TSA and Supplemental Agreement to the LSSA are conditional
upon such approvals as required by the SA and LSSA respectively
and of them becoming unconditional and capable of completion.
The TSA and Supplemental Agreement to the LSSA are available for
inspection on Mondays to Fridays (other than public holidays) at
2nd Floor, Bangunan MCOBA, 42 Jalan Syed Putra, 50460 Kuala
Lumpur for a period of three (3) months from the date of this
announcement.
SENG HUP: Financial Regularization Status Remains Unchanged
-----------------------------------------------------------
Further to the announcement made on 2 June 2003 by AmMerchant
Bank Berhad with regards to the Company's plan to regularize its
financial condition, AmMerchant Bank, on behalf of Seng Hup
Corporation Berhad (Special Administrators Appointed), had
announced on 2 July 2003 that further to the approvals obtained
from the Securities Commission (SC) via its letters dated 26
December 2002, 31 December 2002 and 2 June 2003, the SC had, via
its letter dated 30 June 2003, approved the following:
(a) A revision to the Proposed Restructuring Exercise to
allow the Company to complete a proposed sale of assets and
business of SHCB prior to the completion of the proposed
disposal of the entire issued and paid-up share capital of SHCB
to a special purpose vehicle and the liquidation of SHCB and its
subsidiaries, both of which form part of SHCB's Proposed
Restructuring Exercise; and
(b) A proposed extension of time of up to 31 October 2003 for
SHCB to implement and complete its Proposed Restructuring
Exercise, which includes the proposed transfer to the main board
of the Kuala Lumpur Stock Exchange and the proposed employee
share option scheme.
Further to the above, an announcement on the Notice of Books
Closure was made on 17 July 2003 (as part of the Proposed
Restructuring Exercise) for the recall of the existing ordinary
shares of RM1.00 each in SHCB and the issuance of new ordinary
shares of RM0.50 each in Salcon Berhad (Salcon) to the existing
shareholders of SHCB to replace their existing SHCB shares on
the basis of one(1) new Salcon share for every twenty four(24)
SHCB shares held (Share Exchange). The new Salcon shares were
allotted on 24 July 2003.
Information Circulars dated 10 July 2003 and 17 July 2003
setting out the details of the Proposed Restructuring Scheme
undertaken by SHCB and the above Books Closure respectively has
been dispatched to the shareholders. The prospectus for Salcon
was issued on 28 July 2003.
Save for the above, there is no other material development to
the status of SHCB's plans to regularize its financial position
since its last monthly status announcement made on 1 July 2003.
SITT TATT: Inks SPA, Deed of Settlement With Vendors
----------------------------------------------------
Sitt Tatt Berhad has received a notification dated 1 August
2003, from the Directors, Tan Sri Datuk Dr Mohan Swami, JP and
Dato' Pang Wee Pat, JP (collectively referred to as "the
Directors") via their solicitors that the Directors have on 31
July 2003, entered into a Sale and Purchase Agreement with MISL
& Associates Sdn Bhd (MISL), Datuk Mazlan Bin Jamaludin, Kor
Hiang Ling, Lim Lek Teck, Lai Moon Kwai and Lim Chih Li @ Lin
Zhili (collectively referred to as "the Vendors") and Bintang
Ketara Sdn Bhd that the Directors have agreed to purchase all
the 1,002 ordinary shares in MISL.
MISL is the owner of the following shares:
a) 43,459,500 shares of STB free from moratorium;
b) 34,138,000 Irredeemable Convertible Preference Shares
(ICPS) of STB, of which 50% is held under moratorium; and
c) 62,562,500 ordinary shares of STB held under moratorium.
The Directors also have on 31 July 2003, executed a Deed of
Settlement with the Vendors and MISL wherein:
a) MISL has agreed to sell to the Directors and the Directors
have agreed to purchase from MISL, the 43,459,500 shares of STB
free from moratorium;
b) MISL and the Directors have reached a full and final
settlement of all their differences on the terms and conditions
therein contained and wish to discontinue the legal action
pertaining thereto. The sale referred to in (a) above is
conditional upon the discontinuance of the legal action in this
paragraph (b).
SITT TATT: Reaches Final, Full Settlement With MISL
---------------------------------------------------
Sitt Tatt Berhad informed that it has reached a full and final
settlement with MISL & Associates Sdn Bhd (MISL) of all their
differences in relation to the termination of the SSA and on the
matters which are the subject of the litigation proceedings
between the parties. In pursuance thereto, the parties have
entered into an agreement containing the following material
terms in respect of the retraction of the Company's termination
letter dated 2 July 2003:
a) MISL agrees and confirms to the Company that:
i) MISL shall honor and comply with all terms and
conditions of the Profit Guarantee Agreement dated 23 January
2002 (PGA) including to deposit the Irredeemable Convertible
Preference Shares (ICPS) with the stakeholder in accordance with
the provisions of the PGA;
ii) MISL agrees to fully perform all its obligation under
the SSA.
b) The Company confirms and agrees to:
i) retract its termination notice dated 2 July 2003 of the
SSA and the SSA shall continue in full force and effect as if it
were never terminated.
c) The parties agree to:
i) procure the discontinuance of the proceedings and the
setting aside of the injunction obtained by the Company on 23
July 2003;
ii) irrevocably release and discharge each other against
all obligations, claims and actions arising from or concerning
the proceedings and the injunction;
iii) upon discontinuance of the proceedings and setting
aside of the injunction, MISL shall immediately withdraw the
notice to requisition the Extraordinary General Meeting of the
Company to remove the Board of Directors of the Company;
The Company also wishes to announce that further negotiation
with Mr Chiang Cheng Leong on the 125,125,000 ordinary shares
and the ICPS shall hereafter cease.
TALAM CORPORATION: Unit Makes RM900M BaIDS Settlement
-----------------------------------------------------
The Board of Directors of Talam Corporation Berhad wishes to
announce that Maxisegar Sdn Bhd, a wholly-owned subsidiary of
Talam had on 28 July 2003 made an early settlement of two
Islamic Debt Securities totaling to RM900.00 million. This
represents an early settlement of 7 months from the maturity
date of the RM300.0 million Al-Bai Bithaman Ajil With Islamic
Debt Securities (BaIDs) and 15 months from the maturity date of
the RM600.0 million BaIDs. The early settlement would result in
interest savings by Talam.
The early settlement of the two (2) BaIDs was made via the
Sinking Fund Accounts created and managed by a trustee to
capture the billing proceeds arising from 4 projects, Taman
Puncak Jalil, Saujana Damansara, Bukit Sentosa III and Danau
Putra and the proceeds from the Asset-Back Al-Bai Bithaman Ajil
with Islamic Debt Securities Facility ("Islamic ABS") which
encompasses the sale of certain assets in Taman Puncak Jalil and
Saujana Damansara to Ambang Sentosa Sdn Bhd. Talam announced the
Islamic ABS on 10 June 2003.
The RM300.0 million BaIDs was issued in March 2001 to redeem
certain bank borrowings and to part finance the development cost
of Bukit Sentosa III and Danau Putra . The RM300.0 million BaIDs
was scheduled to mature in March 2004.
The RM600.0 million BaIDs was fully issued in February 2002 to
part finance the construction of the main campus of University
Industry Selangor ("UNISEL") and to part finance the development
and construction of two (2) pieces of development land known as
Taman Puncak Jalil and Saujana Damansara. The RM600.0 million
BaIDs was issued in three tranches and were scheduled to mature
in October 2004, November 2005 and February 2006 respectively.
Taman Puncak Jalil and Saujana Damansara, two of Talam's most
successful projects, are strategically located within the
respective vicinity of Bukit Jalil and Sierramas in Sungai
Buloh. Both the projects have attracted strong interest from the
public with almost 100% units sold since its first launch in
June 2001 and August 2001 respectively.
TECHNO ASIA: Seeks Investigative Audit Time Extension
-----------------------------------------------------
With reference to the announcement made on 17 February 2003,
AmMerchant Bank Berhad in relation to the Proposed Restructuring
Exercise.
On behalf of Techno Asia Holdings Berhad (Special Administrators
(SA) Appointed), Arab Malaysian Merchant Bank Berhad had
submitted an application to the Securities Commission on 1
August 2003 for an extension of time of up to 30 November 2003
for Messrs BDO Binder to finalize the investigative audit on
TAHB's previous business losses in compliance with one of the
conditions set by the Securities Commission in its approval
letter dated 17 December 2002.
TRANS CAPITAL: AWC Issues Proposed Restricted Offer Prospectus
--------------------------------------------------------------
On behalf of Trans Capital Holding Berhad, AmMerchant Bank
Berhad wishes to announce the status of TRANCAP's plan to
regularize its financial position (Proposals).
AmMerchant Bank wishes to announce that the exchange of shares
pursuant to the scheme of arrangement under Section 176 of the
Companies Act, 1965 between TRANCAP, all its shareholders and
AWC Facility Solutions Berhad (AWC) (the new holding company to
assume the listing status of TRANCAP), whereby all the existing
shareholders of TRANCAP will exchange all their shares in
TRANCAP for new ordinary shares of RM0.50 each in AWC on the
basis of one (1) ordinary share of RM0.50 each in AWC for every
twelve (12) existing ordinary shares of RM1.00 each in TRANCAP
was completed on 27 July 2003. Shares of AWC were also issued to
the unsecured creditors of TRANCAP on the same day as settlement
of the debt owed by TRANCAP in accordance to scheme of
arrangement under Section 176 of the Companies Act, 1965 between
TRANCAP and its scheme subsidiaries and its scheme creditors.
Subsequently, AWC had also issued a prospectus dated 31 July
2003 in relation to its proposed restricted offer for
subscription and offer for subscription for the ordinary shares
of RM0.50 each in AWC. In this connection, a notice to all the
former minority shareholders of TRANCAP was issued by AWC on the
same day informing them that 1,000,000 Shares from the Offer for
Subscription have been made available to the former minority
shareholders of TRANCAP whose names appear in the Record of
Depositors of TRANCAP at the close of business at 5:00 p.m. on
15 July 2003 via balloting (Notice). A copy of the Notice can be
found at http://bankrupt.com/misc/TCRAP_Trancap0806.pdf.
UCP RESOURCES: Releases Default in Payment Update
-------------------------------------------------
In accordance with Practice Note No. 1/2001 of the Kuala Lumpur
Stock Exchange Listing Requirements and further to the earlier
announcement made, UCP Resources Berhad provided an update on
its default in payment as follows:
(i) UCP Manufacturing (M) Sdn. Bhd., a subsidiary of UCP
Resources Bhd, as at 31 July 2003, defaulted in repayment of
Bankers Acceptance, Overdraft, Term Loan and Current Account
amounting to RM49,155,713 made up of a principal sum of
RM40,508,072 and interest of RM8,647,641;
(ii) UCP Marketing (M) Sdn. Bhd., a subsidiary of UCP
Resources Bhd, as at 31 July 2003, defaulted in repayment of
Bankers Acceptance and Term Loan amounting to RM8,702,151 made
up of a principal sum of RM7,936,500 and interest of RM765,651;
and
(iii) Universal Concrete Products Sdn. Bhd., a subsidiary of
UCP Resources Bhd, as at 31 July 2003, defaulted in repayment of
Bankers Acceptance amounting to RM3,217,421 made up of a
principal sum of RM3,000,000 and interest of RM217,421.
The UCP Group shall make periodic announcement on a monthly
basis to the Exchange of the current status of the default and
its steps taken to address the default until such time when it
is remedied.
Further details of the default can be found at
http://bankrupt.com/misc/TCRAP_UCP0806.xls.
=====================
P H I L I P P I N E S
=====================
MANILA ELECTRIC: Mulls Seeking New Rate Increase
------------------------------------------------
Manila Electric Co. (Meralco) is considering whether it will
seek a new rate increase from the government within the year, to
keep it afloat after the Supreme Court ordered it to refund
customers 30 billion pesos in overcharges, Dow Jones reports.
Meralco returned to the black in the second quarter, posting a
net profit of 391.15 billion pesos after a loss in the first
quarter.
The Supreme Court in April upheld an earlier order requiring
Meralco to refund customers for excess charges dating back to
1994. Meralco was planning to implement the refund in four
phases over a period of nine years. Meralco has set aside PHP5.5
billion for capital spending for 2003, of which PHP1.67 billion
has already been spent in the first half.
MANILA ELECTRIC: Targets P1.0B in Profits This Year
---------------------------------------------------
Manila Electric Company (Meralco) is confident that it will meet
its full year profit target of 1 billion pesos this year, BPI
Securities reports. This optimism is hinged on the recent rate
hike granted by the Energy Regulatory Commission (ERC). However,
Meralco continues to grapple with the adverse impact of both the
SC-ordered refund and debt service. Debt payment over the next
three years is estimated at US$150Mn. As a consequence, MER
plans to cut capex spending to P5.5Bn this year (from P6.5Bn).
Also, the Company plans to file for a new tariff increase this
year.
PHILIPPINE LONG: CSFB & Morgan Mandates US$300M Bond Issue
----------------------------------------------------------
Philippine Long Distance Telephone Co. (PLDT) has mandated CSFB
and Morgan Stanley for a dollar-denominated bond deal for around
US$300 million, BasisPoint reports.
DebtTraders reports that Philippine Long Distance and Telephone
Co.'s 11.375 percent convertible bond due in 2012 (CSM06SGN1)
trades between 110 and 112.5. For real-time bond pricing, go
to http://www.debttraders.com/price.cfm?dt_sec_ticker=TELP12PHS1
=================
S I N G A P O R E
=================
ADVANCE AGRO: S&P Rates Debt at 'CC'; Issuer Rating Remains 'SD'
----------------------------------------------------------------
Standard & Poor's Ratings Services on Friday affirmed its 'CC'
senior unsecured debt rating on leading Thai paper manufacturer
Advance Agro Public Co. Ltd.'s US$48.7 million debt due 2007
(actually issued by Advance Agro Capital B.V.). The rating is
removed from CreditWatch, where it was placed with negative
implications in February 1999. Nevertheless, the rating on the
notes indicates that they remain highly vulnerable to
nonpayment, although the company continues to make timely
interest payment.
However, the issuer rating on Advance Agro remains 'SD' because
of the company's continued failure to make timely payment on its
bank debts since the beginning of 2002. At March 31, 2003,
Advance Agro was in default on repayments of Thai baht (THB) 2.5
billion (US$60 million) of debt from Thai banks. Advance Agro
has also not made the quarterly payments on the Thai bank loans
that were restructured in 2000, and it is in breach of financial
covenants on these loans, which entitles the banks to call
THB5.7 billion debts on demand.
Although the company is not making payments for the THB9.2
billion loans from export credit agencies, these obligations
have been met by the Thai banks, which have guaranteed these
obligations. Therefore, the company is highly dependent on the
domestic banks. "Advance Agro's ability to service its debt in a
timely manner is severely constrained by a large amount of
potential debt repayments, strained financial position of other
companies in the group, unavailability of any cushion on
liquidity facilities, and high dependence on local banks for
meeting the foreign currency debt obligations," said Sharad
Jain, credit analyst and director at Standard & Poor's Corporate
and Infrastructure Ratings group.
Standard & Poor's considers Advance Agro's debt level, which has
been more than 75% of capital since 1999, as very aggressive for
a company engaged in a cyclical business. The unsustainability
of its high debt is reflected in the very weak fund from
operations to debt ratio of 9% for the past five years.
"Standard & Poor's expects Advance Agro to remain in
default until it completes ongoing negotiations with domestic
banks to restructure its debt," said Mr. Jain.
BBR GROUND: Issues First Interim Dividend Notice
------------------------------------------------
BBR Ground Engineering Pte Ltd. (In liquidation) issued first
interim dividend as follows:
Address of Registered Office: Office of the Liquidator.
Number of Matter: Companies Winding Up No. 600189 of
2001.
Amount Per Centum: 100 percent (Preferential creditors)
1 percent (Unsecured creditors).
First & Final or Otherwise: First Interim Dividend.
When Payable: 6th August 2003.
Where Payable: Office of the Liquidator
c/o DON HO & ASSOCIATES
Certified Public Accountants
Corporate Advisory & Recoveries
20 Cecil Street #12-02 & 03
Equity Plaza
Singapore 049705.
Tel: 6532 0320 (8 lines).
Fax: 6532 0331.
Name of Liquidator : Mr DON M HO, CPA.
CHARTERED SEMICON: Fab Units Receive Safety Performance Awards
--------------------------------------------------------------
Chartered Semiconductor Manufacturing, one of the world's top
three dedicated semiconductor foundries, announced that four of
its fabrication facilities received Gold and Silver honors at
the annual Safety Performance Awards 2003 organized by
Singapore's Ministry of Manpower (MOM).
Companies applying for the safety awards undergo rigorous review
of their safety management systems and performance. The panel of
judges includes representatives from the MOM, Singapore National
Employers Federation, Singapore Contractors Association,
Singapore Confederation of Industries, Association of Singapore
Marine Industry and the National Trades Union Congress.
"Winning these safety awards assures our employees, customers,
partners and suppliers that Chartered is committed to providing
a safe and healthy work environment and protecting its long-term
business interests," said Daniel Steele, director of corporate
environmental, health & safety. "At Chartered, we emphasize an
accident-free safety culture through the personal responsibility
of our employees, resident partners, contractors and vendors."
For the second consecutive year, Chartered received Gold awards
for its Fab 3 and Chartered Silicon Partners (CSP or Fab 6) for
demonstrating excellent standards in safety performance and
safety management systems. Chartered received Silver awards for
its Fab 1 and Fab 2.
About Chartered
Chartered Semiconductor Manufacturing, one of the world's top
three dedicated semiconductor foundries, is forging a customized
approach to outsourced semiconductor manufacturing by building
lasting and collaborative partnerships with its customers. The
Company provides flexible and cost-effective manufacturing
solutions for customers, enabling the convergence of
communications, computing and consumer markets. In Singapore,
Chartered operates five fabrication facilities and has a sixth
fab, which will be developed as a 300mm facility.
A Company with both global presence and perspective, Chartered
is traded on both the Nasdaq Stock Market and on the Singapore
Exchange. Chartered's 3,500 employees are based at 11 locations
around the world. Information about Chartered can be found at
www.charteredsemi.com.
Chartered Semiconductor Manufacturing (CSM) posted a narrower
second quarter loss this year, citing an increase in customer
orders, TCR-AP reported recently. The Company posted its
tenth consecutive quarter of losses, with a net loss of $90
million, or 36 cents loss per diluted American Depositary Share
(ADS), for the quarter ended June 30. That compared with a net
loss of $90.7 million, or 57 cents loss per ADS share, in the
year-earlier period. Second quarter revenue was $127.6 million,
basically flat on $127.5 million a year ago, but up 22.9 percent
sequentially. The Company had forecast sequential revenue growth
of only 17 percent to 20 percent.
CONTACT:
Maggie Tan, (65) 6360.4705
tanmaggie@charteredsemi.com
GRAND GARDEN: Issues Notice of Winding Up Order
-----------------------------------------------
Grand Garden Seafood Restaurant Pte Ltd (RC No. 199905956W)
issued a notice of winding up order made on 25th day of July
2003.
Name and address of Liquidator: The Official Receiver
45 Maxwell Road #05-11
The URA Centre (East Wing)
Singapore 069118.
CENTRAL CHAMBERS LAW CORPORATION
Solicitors
LASCO PTE: Winding Up Hearing Set For August 15
----------------------------------------------
The petition to wind up Lasco Pte Ltd. is set for hearing before
the High Court of the Republic of Singapore on August 15, 2003
at 10 o'clock in the morning. The Bank of China, a creditor,
whose address is situated at Battery Road, Bank of China
Building, Singapore 049908, filed the petition with the court on
July 18, 2003.
The petitioners' solicitors are Hee Theng Fong & Co. of 7
Temasek Boulevard, #13-02 Suntec Tower 1, Singapore 038987. Any
person who intends to appear on the hearing of the petition must
send by post to Messrs Hee Theng Fong & Co., notice in writing
of his intention to do so. The notice must state the name and
address of the person, or, if a firm, the name and address of
the firm, and must be signed by the person firm, or his or their
solicitor (if any) and must be served, or, if posted, must be
sent by post in sufficient time to reach the petitioners'
solicitors not later than 12 o'clock noon of the 14th day of
August 2003.
ST ASSEMBLY: Moves Closer to Profit
-----------------------------------
ST Assembly Test Services Ltd. (STTS) edged nearer to profit
after losing money for 10 straight quarters, Dow Jones reports.
The Company's net loss for the second quarter ended June 30
narrowed substantially to US$700,000 from a US$21.6 million loss
a year ago, as revenue surged 71 percent to US$87.6 million.
The chip tester and packager expects third-quarter revenue to be
between US$92.0 million and US$96.4 million, compared with
US$63.1 million a year ago - putting it just a few million
dollars away from the US$100 million level required to turn a
profit.
===============
T H A I L A N D
===============
BANGCHAK PETROLEUM: Appoints Dir Chunhavajira as FRS Chairman
-------------------------------------------------------------
The Bangchak Petroleum Public Company Limited's Board of
Directors Meeting No. 8/2003 held on July 29, 2003 had passed a
resolution to approve the appointment of Mr. Pichai
Chunhavajira, the Company's Director, to be Chairman of the
Financial Restructuring Committee (FRS), who is responsible for
conducting the Company's financial restructuring plan in
accordance with the Cabinet's resolution, with the effective
date from July 29, 2003 until the completion of the financial
restructuring process.
Mr. Pichai Chunhavajira, the Company's directors, has the
experiences in raising funds of PTT Plc. in the stock market and
conducting many financial restructuring plans of the PTT's
subsidiaries.
MILLENNIUM STEEL: SET Grants Listed Securities
----------------------------------------------
Starting from August 5, 2003 ,the Stock Exchange of Thailand
(SET) allowed the securities of Millennium Steel Public Company
Limited (MS) to be traded on the SET after finishing capital
increase procedures.
Name : MS
Issued and Paid up Capital
Old : 5,445,463,627
Commom Shares : 3,800,281,586 shares
Preferred Shares : 1,645,182,041 shares
New : Bt5,445,463,627
Commom Shares : 3,831,031,503 shares
Preferred Shares: 1,614,432,124 shares
Par Value : Bt1
Allocate to : The Kasikornbank Public Company Limited
for conversion of Preferred Share to
Common Share amounting to 30,749,917
shares.
Ratio : 1 Preferred Share : 1 Common Share
Conversion Price : -
Conversion Date : 17 July 2003
Note : MS's preferred shares are not listed on the SET
NATIONAL FERTILIZER: Filing Rehabilitation Plan to Court
--------------------------------------------------------
National Fertilizer Public Company Limited has reached mutual
agreement with the financial institution creditors to propose
the financial restructuring through the Central Bankruptcy
Court, and this includes the search of qualified strategic
partners to support of the working capital fund, to increase
production efficiency and to expand the distribution channels
for the Company's products.
The financial institution creditors, consisting of Thai Asset
Management Corporation and the Siam Commercial Bank PLC,
recently gave a solution to select a new strategic partner group
which, comprising the joint holdings of China Xiyang Group and
Thaipicon and Industry Co., Ltd.
In this regard, the Company, the financial institution creditors
and the new investor group have a mutual concurrence to go
through a rehabilitation process by filing to the court
proposing the plan as procedurals as such imposed in practice.
THAI WAH: Court Orders Registered Capital Increase
--------------------------------------------------
Thai Wah Group Planner Company Limited as the Plan Administrator
of Thai Wah Public Company Limited, advised that the Central
Bankruptcy Court issued on July 29, 2003 an order for Thai Wah
to decrease its unissued shares and increase its registered
capital by Bt262,500,000 by issuing 26,250,000 new ordinary
shares with the par value of Bt10.
All new ordinary shares shall be proportionately allotted to the
Creditors pursuant to the Amended Business Reorganization Plan
of the Company.
Information on the capital decrease and increase are detailed in
the Capital Increase Report Form, which can be found at
http://bankrupt.com/misc/TCRAP_TWH0806.pdf.
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick,
Maria Vyrna Nineza-Merlin, Maria Cristina Pernites-Lao, Editors.
Copyright 2003. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers. Information
contained herein is obtained from sources believed to be
reliable, but is not guaranteed.
The TCR -- Asia Pacific subscription rate is $575 for 6 months
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each. For subscription
information, contact Christopher Beard at 240/629-3300.
*** End of Transmission ***