/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/030826.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, August 26, 2003, Vol. 6, No. 168 Headlines A U S T R A L I A AMP LIMITED: Names Two New Directors to Board MAYNE GROUP: Consortium Offering AU$800M for Ailing Hospitals QANTAS AIRWAYS: Selling AU$500 Million Worth of Properties C H I N A & H O N G K O N G LAI SUN: Sale of Causeway Bay Plaza Spurs Market Rally SHANGRI-LA ASIA: Blames SARS Outbreak for 88% Net Profit Dive SHENYANG PUBLIC: Indicative Financial Figures Down at least 95% I N D O N E S I A BANK MANDIRI: Will Restructure Equity to Meet Dividend Payout GARUDA INDONESIA: Second Restructuring in Two Years Underway HUTAMA KARYA: Loses Management of JORR's Southern Section J A P A N HUIS TEN: Nomura Leads Theme Park Race RESONA BANK: Selling Stake In Nomura Holdings K O R E A ASIANA AIRLINES: To Start DMIA Flights Next Month HANARO TELECON: LG Group Rejects New Issue Plan HYNIX SEMICONDUCTOR: Seals LOI for Non-Memory Units HYNIX SEMICON: Develops 0.18um High Voltage Process Technology HYNIX SEMICONDUCTOR: Pushes Chip Prices Lower HYUNDAI GROUP: Affiliates Market Value Up US$1.3B KIA MOTORS: Ready to Face Union on Monday SK GLOBAL: Writes Off Over 80% Stock Value SK GLOBAL: 40% Payout Proposal Gets Mixed Reviews M A L A Y S I A EPE POWER: Widens 1H03 Pretax Loss to RM2.13M HIAP AIK: Issues Proposal to Extend Restructuring Scheme MTD CAPITAL: Schedules 10th AGM on September 15 NIPPON ELECTRIC: Shutting Down Shah Alam Operations October 15 PERNAS INTERNATIONAL: EGM Set For September 9 SATERAS RESOURCES: Delists Securities From KLSE TONGKAH HOLDINGS: Creditors Meeting Set September 15 UCP RESOURCES: Appoints Horwath as Investigative Auditor P H I L I P P I N E S MULTINATIONAL TELECOM: Officials Indicted For Swindling NATIONAL POWER: CBK to Bid For Genco Assets NATIONAL STEEL: Rehab May Push Through, Says Villamor NATIONAL STEEL: Accepting Bids Starting August 25 S I N G A P O R E AIS TRADING: Releases Winding Up Order Notice ASIA PULP: Japanese Customers Demand Forest Protection FAMCARE INTERNATINAL: Issues Winding Up Order Notice HEALTHYCO INTERNATIONAL: Releases Winding Up Order Notice MARLEX DISTRIBUTORS: Places Firm Under Judicial Management T H A I L A N D THAI HEAT: Turnaround Planner Posts Changes in Rehab Plan THAI MILITARY: Siam City Interested in THB10 Billion NPLs THAI PETROCHEMICAL: To Hire Morgan Stanley, SCB as Consultants - - - - - - - - ================= A U S T R A L I A ================= AMP LIMITED: Names Two New Directors to Board --------------------------------------------- AMP Limited Chairman Peter Willcox yesterday announced the appointment of two Directors to the Board. AMP has appointed Dr. Nora Scheinkestel, who will commence September 1, 2003, and Peter Mason, who will commence October 20, 2003. Mr. Willcox said: "I am delighted that Nora and Peter will join the AMP Board, following the appointments of Pat Handley and Meredith Hellicar earlier this year. "AMP's Board has undergone considerable renewal this year as part of the new direction of the company and the two appointments complete the rebuilding of the AMP Board, following the restructuring announced in February 2003. "The personal qualities and experience that Nora and Peter will bring to the AMP Board as we master the challenges of building a new AMP will be invaluable." Dr. Scheinkestel is currently a Director of two publicly listed companies, Newcrest Mining Ltd and PaperlinX Ltd., is Chairman of a water utility and sits on the Boards of other Government bodies. She was formerly a senior banking executive in international and project financing, currently runs her own consulting business and is an Associate Professor at Melbourne Business School. Mr. Mason is well known in Australian investment markets. With more than 30 years investment banking experience, he is currently Chairman of the JP Morgan Chase Bank group in Australia. He was previously a Director of the Lloyds Banking group investment banking businesses in Australia and the United Kingdom, Chairman and Joint Chief Executive of Schroders Australia Limited, and Group Managing Director of the Schroders investment banking businesses in the Asia Pacific region. He is also currently a Director of Mayne Group Limited. After the appointment of these Directors, the AMP Limited Board will comprise seven non-executive and two executive Directors. Seven of these nine Directors will have been appointed within the past 12 months. All Directors were elected by shareholders at the Annual General Meeting (AGM) in May 2003, with the exception of the two appointments announced yesterday. Dr. Scheinkestel and Mr. Mason will stand for election at the next AGM in 2004. MAYNE GROUP: Consortium Offering AU$800M for Ailing Hospitals ------------------------------------------------------------- A syndicate led by Macquarie Bank Ltd. is reportedly offering AU$800 million for the underperforming hospitals business of Mayne Group Ltd., the Australian Financial Review said Monday. An unidentified company spokesman, when contacted by Dow Jones to verify the report, did not directly confirm the offer, but admitted that there are negotiations going on: "The discussions are continuing with a number of parties." Mayne first floated the idea of selling its entire hospital business last month. According to the Australian Financial Review, the syndicate also involves Ramsay HealthCare Ltd. and Benchmark Healthcare. In a separate report, Reuters said the consortium's offer involve placing the hospitals into a listed property trust and dividing management control of the various facilities between Ramsay and Benchmark, a privately owned hospital operator. The hospitals unit consists of 53 hospitals that have 4,800 licensed beds. Citing the Australian Financial Review, Reuters said at least one private equity player was also considering making a competing bid. Reuters said analysts and fund managers have been speculating the hospitals would be sold for between AU$700 million and AU$800 million, well below their AU$1.1 billion value on Mayne's books, and be spun off into a listed property trust. QANTAS AIRWAYS: Selling AU$500 Million Worth of Properties ---------------------------------------------------------- An unidentified spokeswoman for Qantas confirmed Monday reports that it is selling its Sydney and Melbourne domestic passenger terminals to raise money to fund its expansion. Australian Financial Review earlier said the country's largest airline hopes to raise AU$500 million out of the assets. Accordingly, the carrier is in talks with a number of parties. "The story is accurate," a spokeswoman for Qantas told Dow Jones when sought for comments. =========================== C H I N A & H O N G K O N G =========================== LAI SUN: Sale of Causeway Bay Plaza Spurs Market Rally ------------------------------------------------------ Reports that Lai Sun Development's debt restructuring has been progressing well pushed its shares to a 52-week high Thursday, closing at 13 HK cents, up 35.42 percent, The Standard said. The rally followed the announcement that the loss-making property developer has agreed to sell Causeway Bay Plaza I to Wing On Properties and Securities Company, a subsidiary of Wing On (Holdings), for HK$1.2 billion. The company, however, will incur a loss of HK$273 million from this transaction, but it will help repay creditors more than HK$900 million in debt. eSun Holdings CEO Lee Po-on said Lai Sun Development, the largest shareholder of eSun, intended to submit a final proposal to its creditors in a month in an effort to reduce its liabilities from HK$8 billion to HK$3 billion. Lai Sun's proposals include cash, property and securities, he said, and might also cut debts. He is confident the creditors would accept the restructuring proposal, The Standard said. SHANGRI-LA ASIA: Blames SARS Outbreak for 88% Net Profit Dive ------------------------------------------------------------- The first indications of how badly the SARS outbreak affected business in the Asia Pacific region, in particular Hong Kong, during the first-half came to light recently. Luxury hotel chain Shangri-La Asia reported a US$5.6 million net profit for the six months to June, down 88.3% from last year's US$47.9 million, The Standard said yesterday. Financial officer Madhu Rao said the company - which operates 41 hotels worldwide - posted a turnover of US$222 million, down from US$290 million. "The outbreak of the SARS epidemic in late March led to an unprecedented decline in travel volumes and hotel occupancies throughout most of the Southeast Asian region," he told The Standard. Shangri-La CEO and Managing Director Giovanni Angelini also attributed the drop in interim profit on renovation expenses of US$8.68 million during the period. He remains confident business will soon pick up. "We are confident that our hotel business in the territory will be back to normal again next month after the launch of a series of promotion campaigns," Mr. Angelini told The Standard. He said occupancy rates at its Hong Kong Island Shangri-La are back to 90 percent, and 70 percent for the Kowloon Shangri-La. For the first half, the average occupancy level of hotels in Hong Kong was 35 percent, versus 70 percent a year earlier. At the end of June, the company had net borrowings to shareholders' equity ratio of 41.1 percent, the report said SHENYANG PUBLIC: Indicative Financial Figures Down at least 95% --------------------------------------------------------------- Shenyang Public Utility Holdings practically did a somersault during the first-half as both net profit and turnover slumped by at least 95%, the Standard report yesterday. Net profit for the period only amounted to 1.78 million yuan, down 98.61% from the previous year, while turnover nose-dived to 11.67 million yuan, down 96.79%. The company blamed poor property sales for the discouraging results. No dividend will be paid. "During the period, the group seized the opportunity of continuous growth in the real estate market and focused on the sale and project construction of phase one and two of the residential project Water Flowers City in Shenyang," Chairman Xu Er-hui said, adding that 58 percent of the project had been sold. "Since the project was not up to the standard for completion and inspection, the sales income could not be recognized at this stage," he added. Revenue from its property sales shrank to a sixth of the year- ago figure to 11.39 million yuan and recorded a loss of 3.08 million yuan, the report said. ================= I N D O N E S I A ================= BANK MANDIRI: Will Restructure Equity to Meet Dividend Payout ------------------------------------------------------------- To keep a promise made to ensure the success of its initial public offering last month, Bank Mandiri announced Monday it will make use of an accounting procedure that will allow it to pay dividend this year. The company had promised to distribute an interim dividend from 2003 net profit, according to Reuters, one of the reasons why the country's biggest public offering since the Asian financial crisis was a huge success. "Because there is a ruling... the current profit cannot be distributed through a dividend, it must be used to reduce the negative retained earnings first," explained Mandiri Managing Director I Wayan Pugeg to Reuters when asked why the need to restructure the equity. "The plan will make use of an accounting procedure to restructure Mandiri's equity without legal re-organization so that assets and liabilities are revalued. Negative retained earnings will be netted off with additional paid-in capital," Reuters said. Tjandra Lienandjaja, an analyst at GK Goh Securities, told Reuters the plan would not affect the bank's valuation because it would not change Mandiri's total equity. "If the purpose is to be able to pay a dividend, investors will certainly welcome the plan," he added. The bank will release first-half figures within the week, according to Reuters. "It's above our target," Mr. Pugeg said. He declined to give details. GARUDA INDONESIA: Second Restructuring in Two Years Underway ------------------------------------------------------------ Troubled local airline, Garuda Indonesia, will begin debt- restructuring talks with creditors soon, its second in as many years, Dow Jones said yesterday. CEO Indra Setiawan, in an interview with the Financial Times recently, confirmed the company will decide on September 15 whether to seek new talks with creditors about its US$900 million- debt. As part of the restructuring, the company is offering 20% - 25% stake in its maintenance business to a strategic investor. Singapore Airlines and Lufthansa have expressed interest, he said, according to the report. HUTAMA KARYA: Loses Management of JORR's Southern Section --------------------------------------------------------- PT Hutama Karya, which still owes the Indonesian Bank Restructuring Agency (IBRA), will be paid for its interest in Jakarta Outer Ring Road's (JORR) southern section, which was awarded by the latter to PT Jasa Marga, Asia Pulse said. The compensation will be in the form of a reduction of Hutama Karya's obligation to IBRA for its debt restructuring process. The report did not indicate how much money the company still owed the agency. Beginning September, toll-road operator Jasa Marga will start managing the southern section of JORR under a transfer agreement with IBRA. This transfer will be effected once Jasa pay its Rp1.07 trillion obligation to the agency. Half of the amount will be in cash, while the balance will be in bonds, IBRA Chief Syafruddin A. Temenggung told Asia Pulse. ========= J A P A N ========= HUIS TEN: Nomura Leads Theme Park Race -------------------------------------- Nomura Principal Finance Co. has emerged as the favored bidder for Huis Ten Bosch Co., operator of a bankrupt theme park in Sasebo, Nagasaki Prefecture, Kyodo News reported on Sunday. The theme park's court-appointed trustees have narrowed potential buyers of the Company to four, and are set to pick one candidate next week after a final evaluation of their purchase bids and methods of operation. Nomura Principal Finance Co. is the investment arm of the Nomura Securities group. RESONA BANK: Selling Stake In Nomura Holdings --------------------------------------------- Nomura Holdings, Inc has resolved as follows at a meeting of the Executive Management Board held on August 22, 2003 in connection with the secondary offering of its shares currently held by Resona Bank, Ltd. and disposal of treasury shares. The purpose of this offering is to improve the Company's ownership structure. Secondary Offering and Disposal of Treasury Shares I. Secondary Offering 1. Secondary offering of our shares (1) Number of shares to be offered and sold: 31,061,000 shares of common stock of the Company (the "Shares) (2) Selling shareholder and number of shares to be sold: Name Number of shares to be sold Resona Bank, Ltd. 31,061,000 Shares, (3) Offer price: To be determined on any date from Tuesday, September 2, 2003 through Thursday, September 4, 2003 (the Offer Price Determination Date). (4) Method of secondary offering: Nomura Securities Co., Ltd., and Mitsubishi Securities Co., Ltd. (Managers) shall make best efforts to sell the Shares to the general public. The Managers shall jointly underwrite those shares, which remain unsold. (5) Subscription period: Expected to be the period from the business day immediately following the Offer Price Determination Date through the 3rd business day following the Offer Price Determination Date. (6) Delivery date: Expected to be the 7th business day following the Offer Price Determination Date. (7) Subscription money: Same as the Offer Price per Share (8) Unit of offering: 1,000 Shares (9) Representative Executive Officers shall be entrusted to take any action deemed necessary in connection with this offering. (10) The Company submitted a Securities Registration Notice on August 22, 2003 under the Securities and Exchange Law of Japan. 2. Secondary offering conducted by exercise of over-allotment option (1) Number of shares to be offered and sold: 4,650,000 shares of common stock of the Company (the Shares) The number of shares mentioned above is the maximum number of shares to be sold. This number may decrease or the offering of shares by exercise of over-allotment option itself may be ceased due to market demand. The number of shares to be sold shall be determined on the Offer Price Determination Date, taking into account market demand. (2) Selling shareholder and number of shares to be sold: Name Number of shares to be sold Mitsubishi Securities Co., Ltd. 4,650,000 Shares (Maximum) (3) Offer price: Undetermined (The selling price shall be equal to the Offer Price above) (4) Method of secondary offering: Taking into account market demand for the secondary offering of our shares, Mitsubishi Securities Co., Ltd. shall make the secondary offering of shares which it borrows from a third party. (5) Subscription period: The subscription period shall be the same as that for the secondary offering of our shares above. (6) Delivery date: The delivery date shall be the same as that for the secondary offering of our shares above. (7) Subscription money: The subscription money shall be the same as that for the secondary offering of our shares above. (8) Unit of offering: 1,000 Shares (9) Representative Executive Officers shall be entrusted to take any action deemed necessary in connection with this offering. (10) The Company submitted a Securities Registration Notice on August 22, 2003 under the Securities and Exchange Law of Japan. II. Disposal of Treasury Shares (1) Number of shares to be disposed: 4,650,000 shares of common stock of the Company (the Shares) Shares, which were not subscribed to within the subscription period mentioned in (4) below shall not be disposed of by the Company. (2) Disposal price: The Disposal Price will be determined on any date from Tuesday, September 2, 2003 through Thursday, September 4, 2003. The Disposal Price shall be no less than 90 percent of the closing price on the Tokyo Stock Exchange on the Offer Price Determination Date. If there is no quotation available on that day, the closing price of the previous day is applicable. (3) Allocation of shares: Mitsubishi Securities Co., Ltd. is expected to subscribe to and purchase disposed shares. (4) Subscription period: Wednesday, September 24, 2003 (5) Payment date: Thursday September 25, 2003 (6) Unit of subscription: 1,000 Shares (7) Representative Executive Officers shall be entrusted to take any action deemed necessary in connection with this disposal. ========= K O R E A ========= ASIANA AIRLINES: To Start DMIA Flights Next Month ------------------------------------------------- Asiana Airlines will start of international flights to the Diosdado Macapagal International Airport (DMIA) in the Philippines starting September 28, according to ABS-CBN News on Sunday. The airline will be the first continuous international passenger flights to DMIA. There would initially be three flights a week from the Incheon Airport in Seoul to Clark and back. Labor and management of Asiana Airlines have reached a tentative agreement on the withdrawal of a mass layoff plan scheduled for later this year, TCR-AP reported recently. The agreement was made after several rounds of wage talks that began earlier last month. The labor union said the compromise was endorsed by 86.4 percent of 1,606 members who participated in the August 13- 18 voting. The union has 2,504 members. HANARO TELECON: LG Group Rejects New Issue Plan ----------------------------------------------- Hanaro Telecom is struggling to repay debt due on Tuesday after its main shareholders failed to keep a promise to lend financial support, according to Reuters. Hanaro Telecom shareholders declined to purchase a total of 200 billion won ($170.1 million) in five-year convertible bonds last Friday after LG Group, the largest shareholder, and others said the stock conversion price was too high. Under the terms offered last week, the convertible bonds had a maturity of five years and could be converted into shares one year after issuance at 5,000 won per share. The bonds had a yield-to-maturity of 11 percent per annum. New capital is vital for Hanaro, as the debt-laden Internet firm faces heavy competition in a saturated market. KT Corp accounts for 50 percent of the broadband service market and Hanaro has 29 percent. Meanwhile, the Korea Herald reported that Hanaro incurred 11.6 billion won in operating profits for the first six months of this year, but hasn't reported an annual profit for four years. HYNIX SEMICONDUCTOR: Seals LOI for Non-Memory Units --------------------------------------------------- Hynix Semiconductor Inc. said plans to sell its non-memory units are moving according to schedule, as the Company recently received several letters of intent (LOI) from other interested parties, the Maeil Business Newspaper said on Monday. The chipmaker said Thursday that several potential buyers have already completed spot examinations regarding the assets and debts of its non-memory business units, and added that it hopes to seal a memorandum of understanding (MOU) as soon as early September 2003. The company currently has non-memory production lines in its Echon and Kumi production facilities, and three production lines in its Chungju production plant. HYNIX SEMICON: Develops 0.18um High Voltage Process Technology -------------------------------------------------------------- Hynix Semiconductor (www.hynix.com) has completed the development of its 0.18um high voltage process technology. The 0.18um high voltage process technology was developed to address the increased requirement for a "one-chip" total solution on LDI (LCD Driver IC), which includes: Gate, Source, Controller, DC/DC converter and SRAM. The "one-chip" solution benefits manufacturers with reduced chip size and weight, resulting in a significant reduction in manufacturing cost, all due to this breakthrough of 0.18um High Voltage Process Technology. Tomato LSI, a leading LDI design house, developed the "one-chip" LCD Driver IC using Hynix's technology and received excellent results on moving picture performance. Volume production through Hynix will commence September of 2003. This process technology results in chip sizes that are 20~30% smaller than the current pure foundry service providers, thus giving customers a distinct price competitiveness when the LDI market is under constant and severe competition. Hynix is the leader in the 0.18um high voltage process technology and is a step ahead of leading foundries serving the LDI markets. LDI demand is growing rapidly as a result of increased demand for LCD panels, with Hynix's 0.18um high voltage process it took the first step in paving the way to secure new customers, sales revenue and is determined to set a trend for leaders. Hynix has scheduled the release of ULP (ultra low power) process technologies for mobile applications by December 2003, as well as various voltage ranges by February 2004 to strengthen its distinct competitive advantage in high voltage processes. HYNIX SEMICONDUCTOR: Pushes Chip Prices Lower --------------------------------------------- Hynix Semiconductor Inc. faces tariffs of 44.7 percent and 34.8 percent in the United States and Europe, respectively, which raises concerns that the chipmaker will sell more chips in the spot market, DebtTraders reports. Hynix may face similar judgment in Japan. The chipmaker plans to bypass some of the U.S. tariffs by supplying chips directly to the Asian plants of U.S. companies. HYUNDAI GROUP: Affiliates Market Value Up US$1.3B ------------------------------------------------- According to the Korea Stock Exchange on Sunday, the total market value of the four Hyundai companies swelled to 1.57 trillion won (US$1.3 billion) as of Friday, up from 1.06 trillion won on August 4, when Group Chairman Chung Mong-hun committed suicide amid ongoing probes into the group's illegal transfer of US$500 million to North Korea in 2000. Since Chung's death, the stock price of Hyundai Elevator Co. shot up by nearly one-and-a-half times from 12,350 won to 29,100 won, while that of Hyundai Merchant Marine Co. gained more than 77 percent, rising from 2,880 won to 5,100 won. Hyundai Securities Co. saw its equity price jump from 6,250 won to 7,950 won over the last three weeks, and Hyundai Corporation's share price rose 14.3 percent from 385 won to 440 won. Analysts attributed the sharp surges to growing expectations that the Hyundai companies could become more independent, enhancing management transparency and revealing more information about the conglomerate's money-losing tourism business in the North. KIA MOTORS: Ready to Face Union on Monday ----------------------------------------- Kia Motors said that the collective bargaining on a wage increase for this year would resume on August 25, according to Digital Chosun. The carmaker said that the management has already proposed conditions for the wage hike that are much closer to the union's demand. Kia also said that as losses from the strikes have been snowballing, the Company would press ahead with efforts to conclude the negotiations before the Chuseok holiday, which this year falls on September 11. The carmaker has lost 1.3 trillion won due to the strikes. SK GLOBAL: Writes Off Over 80% Stock Value ------------------------------------------ SK Global may write down the value of its stocks by 86 percent and 82 percent held by minority shareholders and the founding Chey family, respectively, according to DebtTraders. The proposal is part of the bailout plan of SK Global. In return, creditors will swap debt into SK Global shares and take control of the Company. SK GLOBAL: 40% Payout Proposal Gets Mixed Reviews ------------------------------------------------- As previously reported, the Foreign Bank Steering Committee signed-off on a proposal to swap their bank loans to SK Global for cash payments over time and a basket of warrants. Hana Bank and other domestic creditors, in turn, would manage SK Global's business under the debt-restructuring pact. "The Local Creditors are intent on swapping trillions of won of debts for equity to relieve SK Global's debt burden, and hopefully revive the ailing Company," Sangim Han at Bloomberg News reports. The arrangement is likewise expected to help relieve the uncertainty concerning SK Global's future. Guy Isherwood, representing the overseas creditors, describes the offer as a fair settlement. Rhee Noh Jong of SK Group is likewise relieved that SK Global can avoid court receivership. "I think the foreign creditors finally caved in to the pressure because they were anxious of getting a much lower recovery from SK Global going into receivership," JP Morgan's debt analyst, Pradeep Mohinani tells Bloomberg. SK Global will now be able to speed implementation of its revival plan and avoid the uncertainties of bankruptcy reorganization. However, Mr. Mohinani continues, there remains the biggest hurdle to the restructuring agreement -- Sovereign Asset Management Ltd. -- SK Corp.'s largest shareholder, which previously called for SK Global's liquidation. Sovereign Asset is against SK Corp.'s participation in solving SK Global's financial problems. Other foreign SK Corp. shareholders like Templeton Asset Management Ltd., a unit of California-based Franklin Resources Inc., and London-based Hermes Investment Asset Management Ltd., along with SK Corp.'s minority shareholders and its own union workers also opposed SK Corp.'s participation. August 19 Decision Date SK Corp. plans to hold another board meeting to decide whether to stick to their decision to take part in the pact, according to spokesman Jin Woo Jin. Meanwhile, individual foreign creditors like Standard Chartered Plc and Credit Lyonnais SA have until August 19, 2003 to fully agree to the compromise. Sovereign Threatens To Pursue Legal Action With SK Corp.'s board decision to take part on the condition that SK Telecom will participate, Sovereign Asset Management Ltd. disapproved and expressed its dislike by threatening to file a lawsuit against SK Corp. The Monaco-based fund expects a 1 trillion won or $847,000,000 drain from its 2003 net income from SK Corp. if it helps solve SK Global's problems. Sovereign believes liquidation is the best solution for SK Global. Sovereign's adviser, Lazard LLC, contends that, "SK Corp. should reject the bailout in order to direct valuable capital into the future growth of SK Corp.'s core energy business." "SK Corp.'s board should expect to be on the receiving end of legal action should it take part in a rescue package engineered by SK Global's creditors," Sovereign's CEO James Fritter informed Bloomberg. To date, the condition that SK Telecom participates in the restructuring remains unmet. (SK GLOBAL BANKRUPTCY NEWS, August 16, 2003, Issue No. 3) =============== M A L A Y S I A =============== EPE POWER: Widens 1H03 Pretax Loss to RM2.13M --------------------------------------------- EPE Power Corporation Berhad suffered RM2.13 million in pre-tax loss for the first six months ended June 30, versus a loss of RM1.44 million a year earlier, according to Credit Assess on Monday. Its revenue decreased from RM38.82 million to RM28.26 million. For its second quarter ended the same period, EPE Power pared down its pre-tax loss to RM758,000 from RM1.86 million in the year earlier period. This was despite revenue declining 24.1 percent to RM15.64 million. However, its net loss was only slightly lower at RM2.25 million when compared to the previous corresponding period. Loss per share was 18.70 sen versus 18.80 sen previously. At end- June, EPE Power has a net tangible liability per share of RM3.09. HIAP AIK: Issues Proposal to Extend Restructuring Scheme -------------------------------------------------------- Reference is made to the announcement made by AmMerchant Bank Berhad (AmMerchant Bank) on 16 May 2003 with regards to the extension of time to obtain all the necessary approvals from the regulatory authorities for the implementation of the Proposed Restructuring Scheme. Further to the announcement made on 14 August 2003, AmMerchant Bank, on behalf of Hiap Aik Berhad, announced that the Proposed Restructuring Scheme is currently subject to the SC's approval on the proposed exemption from the obligation to extend and unconditional mandatory general offer for the remaining shares in Lebar Daun Berhad not held by Dato' Noor Azman at Noor Hizam bin Mohd Nurdin (Dato Noor Azman) and Datin Norhayati Bt Abd Malik and persons acting in concert with them (Proposed Exemption). An application has been made to the Kuala Lumpur Stock Exchange by the Company for a further extension of time until 31 October 2003 to obtain the necessary approvals for the implementation of the Proposed Restructuring Scheme. MTD CAPITAL: Schedules 10th AGM on September 15 ----------------------------------------------- Notice is hereby given that the tenth Annual General Meeting (AGM) of MTD Capital Bhd will be held at lot 8359, Mukim of Batu, Batu 8, Jalan Batu Caves, 68100 Batu Caves, Selangor Darul Ehsan on Monday, 15 September, 2003 at 10.00 a.m. for the following purposes: AGENDA 1. To receive the Report of the Directors and the Audited Financial Statements for the financial year ended 31 March 2003 together with the Report of the Directors and Auditors thereon. (Resolution 1) 2. To declare a First & Final Dividend of 8 percent percent (8 percent) less Malaysian income tax for the year ended 31 March 2003. 3. To declare a First & Final Dividend of 8 percent percent (8 percent) less Malaysian income tax for the year ended 31 March 2003. To approve the payment of Directors' fees for the financial year ended 31 March 2003. (Resolution 2) (Resolution 3) 4. To re-elect the following Directors who shall retire in accordance with Article 64 of the Company's Articles of Association: (a) YBhg. Dato' Dr. Nik Hussain Bin Abdul Rahman (b) YBhg. Dato' Yu Wen Chieh (Resolution 4) (Resolution 5) 5. To re-elect YBhg. Dato' Nik Hassan Bin Abdul Rahman who shall retire pursuant to Section 129(6) of the Companies Act, 1965 to hold office until the conclusion of the next Annual General Meeting. (Resolution 6) 6. To appoint Messrs Ernst & Young as Auditors of the Company in place of the retiring Auditors, Messrs Khoo Wong & Chan and to authorize the Directors to fix their remuneration. Notice of Nomination pursuant to Section 172(11) of the Companies Act, 1965, a copy of which is set out and marked "Annexure A", has been received by the Company for the nomination of Messrs Ernst & Young, who have given their consent to act, for appointment as Auditors and of the intention to propose the following Ordinary Resolution: "THAT Messrs Ernst & Young be and are hereby appointed as Auditors of the Company in place of the retiring Auditors, Messrs Khoo Wong & Chan, to hold office until the conclusion of the next Annual General Meeting at a remuneration to be determined by the Directors." (Resolution 7) 7. As Special Business: To consider and, if thought fit, to pass the following resolution as Ordinary Resolution: ORDINARY RESOLUTION Authority To Issue Shares Pursuant To Section 132D of the Companies Act, 1965 "That pursuant to Section 132D of the Companies Act, 1965, the Directors be and are hereby authorized to issue shares in the Company at any time and upon such terms and conditions and for such purposes as the Directors may, in their absolute discretion, deem fit provided that the aggregate number of shares issued pursuant to this resolution does not exceed 10 percent of the issued share capital of the Company for the time being and that the Directors be and are also empowered to obtain the approval for the listing of and quotation for the additional shares so issued on the Kuala Lumpur Stock Exchange and that such authority shall continue in force until the conclusion of the next Annual General Meeting of the Company, subject always to the Companies Act, 1965, the Articles of Association of the Company and approval of all relevant regulatory bodies being obtained for such allotment and issues." (Resolution 8) 8. To transact any other ordinary business for which due notice has been given. NOTICE OF DIVIDEND PAYMENT Subject to the approval of shareholders at the Tenth Annual General Meeting, a final gross dividend of 8 sen per RM1.00 ordinary share, less tax at 28 percent in respect of the year ended 31 March 2003, will be paid on 31 March 2003 to shareholders, registered at the close of business on 8 October 2003. A depositor shall qualify for the entitlement to dividend only in respect of: (a) Shares transferred into the Depositor's Securities Account before 4.00 p.m. on 8 October 2003 in respect of ordinary transfers; (b) Shares bought on the Kuala Lumpur Stock Exchange on a cum entitlement basis according to the Rules of the Kuala Lumpur Stock Exchange. By Order of the Board CHAN BEE KUAN (MAICSA NO. 7003851) CHOONG YOKE LENG (LS NO. 0016) LOOI KWOK LEONG (LS NO. 0015) Secretaries Selangor Darul Ehsan NIPPON ELECTRIC: Shutting Down Shah Alam Operations October 15 -------------------------------------------------------------- Nippon Electric (M) Sdn Berhad will shut down its manufacturing operation in Shah Alam on October 15 and will result in the termination of 700 workers, based on a report on StarBiz and Credit Assess.com. The reason for the closure was due to sluggish demand for its printed circuit board (PCB). Nippon Electric has been operating in Shah Alam since 1992. The Company is a joint venture between Japanese-based Nippon Steel and Chemical Corp and Kyoden Group. PERNAS INTERNATIONAL: EGM Set For September 9 --------------------------------------------- The Board of Directors of Pernas International Holdings Berhad (PERNAS) announced that its Extraordinary General Meeting (EGM) would be held on Tuesday, 9 September 2003 at 10.00 in the morning at the Grand Nirwana Ballroom, Lower Lobby, Mutiara Kuala Lumpur, Jalan Sultan Ismail, 50250 Kuala Lumpur. The Notice and the Agenda of the EGM is as attached. The Notice of the EGM will appear in the following newspapers:- 1. The New Straits Times 2. Utusan Malaysia 3. Sin Chew Jit Poh 4. The Star Pernas International Holdings Berhad (PIHB) has embarked on the implementation of its restructuring plan to streamline its activities and partially restructure its outstanding debt of more than RM2.5 billion, TCR-AP reported recently. The Proposed Restructuring Scheme as presently formulated, contemplates the reorganization of the Group's hotel operations under one entity, Arena Target Sdn Bhd ATSB presently a 70 percent owned subsidiary of PIHB, through a series of proposed acquisitions. SATERAS RESOURCES: Delists Securities From KLSE ----------------------------------------------- After having considered all the facts and circumstances of the matter and upon consultation with the Securities Commission, the Exchange in the exercise of its powers under paragraph 16.17 of the Exchange's Listing Requirements (LR) has decided to delist the securities of Sateras Resources (Malaysia) Berhad from the Official List of the Exchange as the Company does not have an adequate level of financial condition to warrant continued listing on the Official List of the Exchange. Accordingly, the securities of the Company will be removed from the Official List of the Exchange at 9.00 a.m. on Monday, 8 September 2003. With respect to the securities of the Company, which are currently deposited with the Malaysian Central Depository Sdn Bhd (MCD), the securities may remain deposited with the MCD notwithstanding the de-listing of the securities of the Company from the Official List of the Exchange. It is not mandatory for the securities of the Company, which has been de-listed to be withdrawn from MCD. Alternatively, shareholders of the Company who intend to hold their securities in the form of physical certificates can withdraw these securities from their Central Depository System (MCD) accounts maintained with the MCD at any time after the securities of the Company has been de-listed from the Official List of the KLSE. This can be effected by the shareholders submitting an application form for withdrawal in accordance with the procedures prescribed by MCD. Shareholders can contact any Member Company of the Exchange and/or MCD's helpline at 03-20717711 or 03-20717723 for further information on the witrhdrawal procedures. The Board however has decided to appeal against the above decision of the Exchange. TONGKAH HOLDINGS: Creditors Meeting Set September 15 ---------------------------------------------------- On behalf of Tongkah Holdings Berhad (THB), Public Merchant Bank Berhad announced that the Court Convened Meetings for the Scheme Creditors and shareholders of THB will be held at THB Satu, Level 2, West Wing, 8, Jalan Damansara Endah, Damansara Heights, 50490 Kuala Lumpur on the dates and times specified below or as soon thereafter upon the conclusion or adjournment of the prior meeting: Date/Time Meeting of Shareholders will be held 15 September 2003 at 11.00 a.m. Meeting of the Scheme Creditors 15 September 2003 at 10.30 A.M. for the purpose of considering and, if thought fit, agreeing (with or without modification) to the scheme of arrangement proposed between the Company and its Shareholders and Scheme Creditors respectively. The full notice of the Court Convened Meetings is set out in the file attached below. On behalf of THB, we are also pleased to announce that: (i) A meeting of holders of RM186,558,296 nominal value of 5 year 1 percent-2 percent redeemable secured convertible Bond A 1999/2004 (Bond A) will be held at THB Satu, Level 2, West Wing, 8, Jalan Damansara Endah, Damansara Heights, 50490 Kuala Lumpur on 15 September 2003 at 9.00 a.m. for the purpose of considering and if thought fit, passing (with or without modifications), the resolutions as set out in the file attached below; (ii) A meeting of holders of RM275,980,363 nominal value of 5 year 1 percent-2 percent redeemable secured convertible Bonds B 1999/2004 (Bond B) to be held at THB Satu, Level 2, West Wing, 8, Jalan Damansara Endah, Damansara Heights, 50490 Kuala Lumpur on 15 September 2003 at 9.30 a.m. or immediately after the conclusion or adjournment of the Meeting of Bond A holders for the purpose of considering and if thought fit, passing with or without modifications, the resolutions as set out in the file attached below; (iii) A meeting of holders of RM161,996,151 nominal value of 5 year 1 percent-2 percent irredeemable convertible unsecured loan stocks 1999/2004 (ICULS) to be held at THB Satu, Level 2, West Wing, 8, Jalan Damansara Endah, Damansara Heights, 50490 Kuala Lumpur on 15 September 2003 at 10.00 a.m. or immediately after the conclusion or adjournment of the Meeting of Bond B holders, for the purpose of considering and if thought fit, passing with or without modifications, the resolutions as set out in the file attached below; (iv) An Extraordinary General Meeting of THB will be held at THB Satu, Level 2, West Wing, 8, Jalan Damansara Endah, Damansara Heights, 50490 Kuala Lumpur on 15 September 2003 at 11.30 a.m. or immediately after the conclusion or adjournment of the Court Convened Meeting for the shareholders of the Company for the purpose of considering and if thought fit, passing with or without modifications, the resolutions as set out in the file attached; and (v) A meeting of holders of 196,155,452 Warrants 1999/2004 issued with RM186,558,296 nominal value of 5 year Bonds A 1999/2004 and RM275,980,363 nominal value of 5 year Bonds B 1999/2004 and detachable immediately upon issue to be held at THB Satu, Level 2, West Wing, 8, Jalan Damansara Endah, Damansara Heights, 50490 Kuala Lumpur on 15 September 2003 at 12.00 p.m. or immediately after the conclusion or adjournment of the Extraordinary General Meeting for the shareholders of the Company for the purpose of considering and if thought fit, passing with or without modifications, the resolutions as set out in the file attached. UCP RESOURCES: Appoints Horwath as Investigative Auditor -------------------------------------------------------- Pursuant to the announcement made by Public Merchant Bank on 23 July 2003, the Board of Directors of UCP Resources Berhad has appointed Horwath as the Investigative Auditor on 21 August 2003. This is in accordance with one of the conditions imposed by the Securities Commission upon its approval of the Company's Proposed Corporate and Debt Restructuring Scheme on 18 July 2003. For more information on Horwath Clark Whitehill's chartered accountants and business advisers, go to http://www.horwathcw.com/website.html ===================== P H I L I P P I N E S ===================== MULTINATIONAL TELECOM: Officials Indicted For Swindling ------------------------------------------------------- The Securities and Exchange Commission (SEC) announced that top officials of Multinational Telecom Investors Group (Multitel), owned by Ro-sario A. Baladjay, have been indicted for violation of Presidential Decree 1689 and the Securities Regulation Code (SRC), according to the Manila Times on Monday. PD 1689 pertains to the rules against swindling, or estafa. The indictment carried out by the National Bureau of Investigation was based on the complaint filed by a certain Almira P. Castillo, an investor of Multitel. Apart from Baladjay, other individuals indicted include Saturnino M. Baladjay, Anna Marie Caballero, William Sy, Rodolfo D. Pagtalunan, Julius Gonzalo L. Fuentevella, and Marissa M. Castulo. Baladjay is currently being investigated for pyramiding and is facing charges of syndicated estafa. Authorities allege that thousands of investors lost as much as 30 billion pesos in Multitel. The complainants said Baladjay solicited investments on the promise of monthly returns of 4 percent to 15 percent. NATIONAL POWER: CBK to Bid For Genco Assets ------------------------------------------- CBK Power Co. Limited will bid for the National Power Corporation's generation assets, the Malaya Newspaper reported Monday, citing Company President and Chief Executive Officer Gerard Katz. CBK is committing to spend US$470 million to rehabilitate the plant that will increase its capacity to over 750 megawatts. CBK, which is joint venture partnership between IMPSA of Argentina and Edison Mission Energy of California, is currently rehabilitating and expanding the Caliraya-Botocan- Kalayaan hydropower plant in Laguna. Power Sector Assets and Liabilities Management Corp. (PSALM) President Edgardo del Fonso said the global settlement with CBK Power would yield savings of approximately US$95 million in nominal terms. This includes CBK Power's concession to waive its right to collect from Napocor the last four installments, amounting to US$26 million, due on the security deposit. NATIONAL STEEL: Rehab May Push Through, Says Villamor ----------------------------------------------------- The National Steel Corporation (NSC) can still be rehabilitated and regain its "glory" according to the Malaya Newspaper, citing NSC's former rehabilitation manager Melchor Villamor. Villamor added that the right technical approach, appropriate funding and right management would do the trick. Villamor said that in order to attract investors, the re- operation of NSC should be broken up into three manageable stages. The first most crucial stage is the rehabilitation and operation followed by upgrading and expansion and the last, integration. He said that the rehabilitation process, which he estimates at 2 billion pesos should not be sidetracked that the commercial aspect of the project would be neglected. At rehab stage, he said, the plant should be churning out steel products that are of acceptable quality, with reliable delivery, and competitive in terms of costing. NATIONAL STEEL: Accepting Bids Starting August 25 ------------------------------------------------- Beginning August 25, the National Steel Corporation (NSC) will accept formal offers from interested investors for the lease with an option to buy the Iligan steel facility, the Malaya Newspaper said on Monday. Interested investors have until September 30 to submit their technical and financial offers. A new investor would have been selected to rehabilitate and operate the plant by the end of September or October. Some 500 employees will be hired on a rotation basis to do housekeeping chores in the plant such as cleaning the plant premises, do minor repairs of the building and so on. ================= S I N G A P O R E ================= AIS TRADING: Releases Winding Up Order Notice --------------------------------------------- The creditors of AIS Trading Pte Ltd. (In Members' Voluntary Liquidation), which is being wound up voluntarily, are required on or before the 23rd day of September 2003 to send in their names and addresses, with particulars of their debts or claims and the names and addresses of their solicitors (if any) to the undersigned, the Liquidator of the Company, and, if so required by notice in writing by the Liquidator, are by their solicitors, or personally, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. RAMASAMY SUBRAMANIAM IYER Liquidator. c/o 8 Cross Street #17-00 PWC Building Singapore 048424. ASIA PULP: Japanese Customers Demand Forest Protection ------------------------------------------------------ Asia Pulp & Paper Co. (APP)'s Japanese customers are threatening to stop buying paper from the Company unless it cleans up its environmental record, according to Dow Jones on Friday. The customers demanded APP to take steps to protect the forest near sits pulp-and-paper mill on Indonesia's Sumatra Island. Environmentalists estimate that at current rates of deforestation, Sumatra's lowland forest, home to tigers and elephants, would disappear within five years. Stung into action, APP signed an agreement with the World Wide Fund for Nature (WWF) this week. Indonesia's Sinar Mas Group, which owns APP and a number of forestry companies, has agreed to set aside 58,500 hectares of its concessions in Sumatra's Riau province as a conservation area. The Company also pledged to tighten up procedures to stop illegally logged wood ending up in its mills, and to publish by January a plan to make its forestry operations self-sustaining over the next few years. DebtTraders reports that Asia Pulp's 11.75 percent bonds due on 2005 (APP7) are trading between 28.5 and 30.5. Go to http://www.debttraders.com/price.cfm?dt_sec_ticker=APP7for real-time bond pricing. FAMCARE INTERNATINAL: Issues Winding Up Order Notice ---------------------------------------------------- Famcare International Pte Ltd issued a notice of winding up order made the 1st day of August 2003. Name and address of Liquidator: The Official Receiver 45 Maxwell Road #05-11/#06-11 The URA Centre (East Wing) Singapore 069118. RAJAH & TANN Solicitors for the Petitioners. HEALTHYCO INTERNATIONAL: Releases Winding Up Order Notice --------------------------------------------------------- Healthyco International Group issued a notice of winding up order made the 15th day of August 2003. Name and address of Liquidator: The Official Receiver of Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118. Messrs RAJAH & TANN Solicitors for the Petitioner. MARLEX DISTRIBUTORS: Places Firm Under Judicial Management ---------------------------------------------------------- Notice is hereby given that a petition for placing Marlex Distributors Pte Ltd (formerly known as Brumag Marketing Pte Ltd) under the judicial management of judicial managers by the High Court was, on 30th day of July 2003 presented by its directors (pursuant to directors' resolution in writing passed pursuant to the Company's Articles of Association) and that the petition is directed to be heard before the Court at 10.00 a.m. on the 22nd day of August 2003 and Mr Yin Kim Choy of Messrs K C Yin & Co of 100 Tras Street, #16-01 Amara Corporate Tower, Singapore 079027 has been nominated as the Judicial Manager; and any person who intends to oppose the making of an order section 227B (5) (b) or the nomination of judicial manager under section 227B (3) (c) may appear at the time of hearing by himself or his counsel for that purpose; and a copy of the petition will be furnished to any creditor or member of the Company requiring it by the undersigned on payment of the regulated charge. The Petitioners' address is care of 50 Raffles Place, #17-01 Singapore Land Tower, Singapore 048623. The Petitioners' solicitors are Messrs David Lim & Partners of 50 Raffles Place, #17-01 Singapore Land Tower, Singapore 048623. Messrs DAVID LIM & PARTNERS Solicitors for the Petitioners. Any person who intends to appear on the hearing of the Petition must serve on or send by post to Messrs David Lim & Partners, notice in writing of his intention so to do. 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 or 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 solicitors not later than 12.00 noon of the 21st day of August 2003 (the day before the day appointed for the hearing of the Petition). =============== T H A I L A N D =============== THAI HEAT: Turnaround Planner Posts Changes in Rehab Plan --------------------------------------------------------- The Director and Manager The Stock Exchange of Thailand Thai Heat Revival Company Limited as the reorganization planner of Thai Heat Exchange Public Company Limited has sent the correction of the rehabilitation plan to the central bankruptcy court on August 15, 2003. These are the details of the correction plan: (1) Grace period for loan payment to the financial institutions. Under the existing rehabilitation plan, the company had to pay the loan to the financial institutions quarterly starting June 30, 2002 and will pay the new loan on the year 2006. Payment has been extended from 2012 to 2014. (2) Interest for the year 2002-2003 and calculated at 3%; 2004- 2005 at 2.5% and MLR after the year 2005. The Heat Revival Co., Ltd. Reorganization Planner of Thai Heat Exchange PLC Mr. Surin Wanpensakul Director THAI MILITARY: Siam City Interested in THB10 Billion NPLs --------------------------------------------------------- State-owned Siam City Bank PCL has answered the call by Thai Military Bank PCL for buyers of its non-performing loan portfolio, Dow Jones reported yesterday. Last Friday, Siam City Bank President Apisak Tantivorawong told reporters it is evaluating the value of the transaction and will send a proposal to Thai Military soon. Dow Jones said the bank is offering to buy THB10 billion worth of problem loans, but it is not clear whether this amount refers to the face value or if the bad loans had been discounted. Thai Military, a state-controlled bank, plans to use the proceeds of the sale to redeem THB13.3 billion in hybrid debt and for provisioning against loan losses. A total of THB45 billion of NPLs was offered for sale by the bank earlier this month. The bank's problem loans are estimated around THB64 billion. The bank will open for subscription September 8-12 an eight-to- five rights issue of 6.405 billion new shares at THB3.5 each to raise THB22.417 billion in fresh capital, the report said. After the September sale, Thai Military plans to sell another batch of bad loans between October this year and December next year. Mr. Apisak expects the deal with Siam City to be completed before the end of September, the deadline for Thai Military's capital raising plan. THAI PETROCHEMICAL: To Hire Morgan Stanley, SCB as Consultants -------------------------------------------------------------- New financial advisors, Morgan Stanley Dean Witter and SCB Securities, have 90 days to suggest a new restructuring plan for Thai Petrochemical Industry Plc, Business Day said yesterday. A highly placed source told Business Day the new advisors have been selected to study the state of the company and help draw details of the new restructuring plan, including the cost of the procedure. An official announcement of their engagement will be made soon. The two advisors will do their jobs separately, but if their plans are viable and the costs aren't too high, both firms will be officially hired. But TPI may select only one financial adviser if its plan and cost is more attractive than the other house, Business Day said. The two were selected from a pool of eight financial institutions that had offered their services to the firm. Meanwhile the Stock Exchange of Thailand (SET) said it will allow shares of TPI to resume trading beginning yesterday following clarification on questions about the company's financial statements for the second quarter. The SET suspended trade in the company's shares on Friday because the company's auditor was unable to express an opinion on the financial statements. TPI informed the SET that the auditor couldn't reach a conclusion because a new administrator had been appointed. TPI is the country's largest debt defaulter and also Asia's largest integrated petrochemical company. A new management led by Mongkon Ampornpisit recently took over supervision of the company's turnaround plan, which seeks to revamp TPI's US$2.8 billion debt owed to various creditors including the Bangkok Bank Plc. The new team includes renowned people like Pala Sookawesh, Pakorn Malakul and Thanong Bidaya. 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