/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/030926.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, September 26, 2003, Vol. 6, No. 191 Headlines A U S T R A L I A AMP LIMITED: Accused of Rigging Stanbroke Pastoral Sale DUKE ENERGY: Australian Assets Could be Next in Auction List QANTAS AIRWAYS: NZ Regulator Needs More Time to Study Merger WESTERN METALS: Receives AU$21 Million for Copper Assets C H I N A & H O N G K O N G CAPITAL LANE: Winding Up Hearing Set October 22 CHAMP MILLION: High Court Sets Winding up Hearing October 22 FAITH GO: High Court to Hear Winding up Petition November 5 HONG KONG: First-half Losses Widen to HK$162.6 million JINAN QINGQI: Fined for Misappropriating IPO Proceeds I N D O N E S I A ASIA PULP: Widjaja Family Stalls Debt Talks; Creditors Plan Suit INDONESIA SATELLITE: Sells MGTI Stake for US$60 Million J A P A N DAIEI INC.: Eyes Commemorative Sales Campaign FURUKAWA CO.: R&I Downgrades From BB HIKARI TSUSHIN: JCR Upgrades Rating to BB+ MITSUBISHI ELECTRIC: Releases Revised Sales Forecast for 2004 MITSUBISHI MOTORS: Delists Stock in Japan Exchanges K O R E A CHOHUNG BANK: Shinhan May Consider Capital Increase for Bank CHOHUNG BANK: Discloses 1H03 Financial Results KOOKMIN BANK: Faces Stock Sale Investigation SK GLOBAL: Chey Tae Won Donates W100B to Company M A L A Y S I A KUALA LUMPUR INDUSTRIES: Issues Restructuring Proposal Update MERCES HOLDINGS: Enters Winding Up Petition OLYMPIA INDUSTRIES: Seeks Renewal of Shareholders' Mandate RASHID HUSSAIN: Extends Share Option Scheme to October 8 SIN HENG: Seeks Extension of Audit Report to November 30 SJA BERHAD: Reply to SGX Query TECHNO ASIA: SC Rejects YSSB Proposal WING TIEK: Signs 2nd Supplemental Deal With White Knight P H I L I P P I N E S PHILIPPINE LONG: ING Upgrades Recommendation to "Buy" S I N G A P O R E CAPITALAND LIMITED: Unit Enters Voluntary Liquidation CHARTERED SEMICONDUCTOR: Denies Parent Selling Stake CHUAN SENG: Releases Notice of Intended Dividend FLEXTRONICS INTERNATIONAL: Challenges U.S. Jury Verdict ALIMA VENUS: Issues Notice of Intended Dividend INFORMATION FUSION: Releases Notice of Preferential Payment LIP YICK: Issues Winding Up Order Notice L&M GROUP: Issues Notice of Shareholder's Interests L&M GROUP: Appoints SBI E-2 Capital as Financial Adviser MULTICO-ORCHIDS: Winding Up Hearing Set October 3 SINGAPORE TELECOMMUNICATIONS: Unveils Dissolution of Units SLET PTE: Creditors to Submit Claims by October 20 T H A I L A N D THAI PETROCHEMICAL: Creditors Turn Blind Eye to Unpaid Interests TPI POLENE: Krung Thai Bank Pressured to Grant Loan to Prachai - - - - - - - - ================= A U S T R A L I A ================= AMP LIMITED: Accused of Rigging Stanbroke Pastoral Sale ------------------------------------------------------- The Australian Agricultural Co., represented by Douglas Meagher, urged Federal Court Justice Ronald Sackville to enjoin the sale of Stanbroke Pastoral Co. to Nebo Holdings & Investments, Dow Jones reported yesterday. Mr. Meagher told the court that Marcus Derwin of AMP Henderson, who ran the sale and was a director of Stanbroke, had colluded with fellow Stanbroke director and Nebo consortium member Peter Hughes in order to make Nebo win the bid. Australian Agricultural wants the tender process to be reopened. AMP Ltd. rejected the allegations, insisting the AU$490 million transaction involving its unit, AMP Life, was above board. DUKE ENERGY: Australian Assets Could be Next in Auction List ------------------------------------------------------------ American power generator, Duke Energy Corp., is reportedly considering a sale of its US$1.02 billion interests in Australia, Dow Jones said yesterday. According to the news agency, the company has approach several investment banks, while executives recently visited Australia to investigate sale options, including a public offering of shares. An unnamed spokeswoman, in an interview with Dow Jones, admitted the group is indeed considering several options, but no decision have been made yet. Based in Charlotte, North Carolina, Duke has been selling assets to pay down debt in the wake of a credit squeeze that hit the U.S. power sector following the collapse of energy trading concern Enron Corp. in late 2001. QANTAS AIRWAYS: NZ Regulator Needs More Time to Study Merger ------------------------------------------------------------ The results of the study into the possible effects of a Qantas- Air New Zealand alliance will be out on October 24 yet, after the New Zealand Commerce Commission extended the deadline to complete its consideration of the "extensive information received." "We are working on our final economic analysis and calculations," NZCC General Manager Geoff Thorn told Asia Pulse recently. "We sought additional time to fully analyze the extensive information received." He said the four-week extension is significant and the Commission is committed to announcing its final determinations once completed, which could be within the October 24 deadline. The New Zealand competition watchdog was expected to hand down its decision on the proposed alliance this month, after its Australian counterpart determined the alliance was anti- competitive and could lead to higher airfares. According to Asia Pulse, Qantas wants to take a 22.5 percent stake in Air New Zealand at a cost of AU$500 million ($US337.5 million) under a plan that would result in Air New Zealand taking over trans-Tasman operations and flights within New Zealand for both the airlines. WESTERN METALS: Receives AU$21 Million for Copper Assets -------------------------------------------------------- Hindalco, part of India's largest non-ferrous metals group Aditya Birla, will pay Western Metals AU$21 million for its copper asset, the Financial Times said Tuesday. The Indian buyer is also expected to exercise an option to buy majority stakes in two additional plots in the same copper belt of Queensland for AU$1.5 million, the report said. Western Metals placed these assets on the auction block after falling into receivership in July on the back of hedging losses. It will retain its zinc and lead interests, in which Hindalco says it has no interest. Commenting on the acquisition, Aditya Chairman Kumar Mangalam Birla told the Financial Times the investment was another step in securing long-term supplies of copper concentrate, the intermediate material smelted into copper. Analysts also told the paper the acquisition was a logical step in sourcing captive feedstock to feed into copper smelters, part of Hindalco's wider desire to become an integrated smelter. The paper said India has little copper ore and Hindalco and Sterlite, the country's two dominant smelters, depend on imported concentrate. Hindalco currently procures only 13% from captive mines. ============================ C H I N A & H O N G K O N G ============================ CAPITAL LANE: Winding Up Hearing Set October 22 ----------------------------------------------- The High Court of Hong Kong will hear on October 22, 2003 at 9:30 a.m. the petition seeking the winding up of Capital Lane Holdings Limited. Industrial and Commercial Bank of China (Asia) Limited whose registered office is at ICBC Tower, 122-126, Queen's Road Central, Hong Kong filed the petition on August 27, 2003. Deacons represents the petitioner. Creditors and other interested parties are urged to attend the hearing. They only need to notify in writing Deacons, which holds office on the 5th Floor, Alexandra House, Central Hong Kong. CHAMP MILLION: High Court Sets Winding up Hearing October 22 ------------------------------------------------------------ Champ Million Limited faces a winding up petition filed with the High Court of Hong Kong, which has set a hearing on October 22, 2003 at 9:30 a.m. Wong Man Cheung of Room 35, 20/F., Block C3, Lei Chak House, Ap Lei Chau Estate, Hong Kong filed the petition. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office on the 34th Floor, Hopewell Centre 183 Queen's Road East, Wanchai Hong Kong. FAITH GO: High Court to Hear Winding up Petition November 5 ----------------------------------------------------------- The petition seeking the winding up of Faith Go Limited will be heard by the High Court of Hong Kong on November 5, 2003 at 10 a.m. Wong Wing Fei of 3/F, 85 Shek Pai Wan Road, Aberdeen, Hong Kong filed the petition on September 10, 2003. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office on the 34th Floor, Hopewell Centre 183 Queen's Road East, Wanchai Hong Kong. HONG KONG: First-half Losses Widen to HK$162.6 million ------------------------------------------------------ Hong Kong Construction reported recently a first-half net loss of HK$162.6 million, wider than last year's HK$138.5 million for the same period. According to the South China Morning Post, the company lost HK$7.4 million from the operations of associates, a sharp turnaround from last year when it derived HK$30.1 million from these activities. The company did not declare any dividend. JINAN QINGQI: Fined for Misappropriating IPO Proceeds ----------------------------------------------------- Jinan Qingqi, China's first listed motorcycle company, received a fine of RMB400,000 (US$48,235) while 10 of its executives were punished for falsifying its accounts, the Financial Times said Tuesday. According to China Securities Regulatory Commission, the company had omitted information about the way it used part of the proceeds of its initial public offering in 1993. In addition, the company failed to use RMB202 million raised in the IPO to repay bank loans, as had been promised in its prospectus. Operating out of Shandong, the Jinan Qingqi has dual listings on the A-share market and also the hard-currency B-share market, which until two years ago was reserved for foreign investors. According to the regulator, it also found discrepancies in the company's use of RMB403 million raised in other share issues, including its 1997 IPO in the B-share market. In all, the company, whose shares has been suspended from trading since May after recording three years of losses, has raised a total of RMB1.6 billion in various share issues. The company recently applied for resumption of trading after returning to profitability in the first half of this year, the report said. ================= I N D O N E S I A ================= ASIA PULP: Widjaja Family Stalls Debt Talks; Creditors Plan Suit ---------------------------------------------------------------- Foreign creditors accused the Widjaja family of employing delaying tactics, which is threatening to scupper the restructuring plan of Asia Pulp and Paper. According to Dow Jones, both sides failed to reach a common ground during a meeting Wednesday over a provision, which was supposed to be settled by now. In June, the two agreed that APP repay around US$2 billion of its Indonesian debt over 15 years, or convert that debt into shares in the company. The family is now saying there should be no timeframe to repay this portion of borrowing -- known as Tranche C or unsustainable debt. Indra Widjaja, the family's chief negotiator in the restructuring talks, told reporters after the meeting the family is not backtracking on promises to creditors. Creditors threaten to file legal action if a compromise with APP can't be reached, although they haven't yet raised this possibility with the company, a person privy to the talks told Dow Jones. For its part, the Indonesian Bank Restructuring Agency, which is APP's largest single creditor, remains hopeful a debt plan will still be reached by middle of October. INDONESIA SATELLITE: Sells MGTI Stake for US$60 Million ------------------------------------------------------- The sale of PT Indonesia Satellite Corp.'s 30.35% stake in PT Mitra Global Telekomunikasi Indonesia, is expected to double its net profit this year and help refinance a large portion of its debt, according to Dow Jones. The stake in the fixed line operator based in Central Java will be sold to a unit of Saratoga Investama Sedaya, a local investment firm, Indosat said. Along with the stake of other shareholders, Saratoga will assume 100% control of the unit, including its US$81 million debt, for US$266 million, the report said. "The sale of MGTI will benefit Indosat and boost its net profit," Tjandra Lienanjaya, who heads the research department of GK Goh Indonesia, told Dow Jones in an interview. He said if the deal is completed before the end of this year, Indosat will raise around US$60 million from selling MGTI, which can be added into its net profit for 2003. Indosat's net profit last year fell to IDR525.11 billion from IDR604.13 billion in 2001. Analysts expect Indosat's net profit this year to reach as much as IDR1.3 trillion, with most of the gain coming from the sale of MGTI, according to Dow Jones. Meanwhile, the sale will also help refinance some of its US$900 million debt later this year. Recently, the company issued IDR1.25 trillion in bonds and will issue another up to US$300 million in foreign bonds to repay expiring loans. ========= J A P A N ========= DAIEI INC.: Eyes Commemorative Sales Campaign --------------------------------------------- Daiei Inc. will carry out a commemorative sales campaign for up to eight days if its Fukuoka Daiei Hawks professional baseball team wins the Pacific League pennant this season as expected, Kyodo News said on Thursday. Involving Daiei and 29 group companies, discount sales will be offered from the day after the hoped-for capture of the pennant at some 34,000 retail outlets of the Daiei group. FURUKAWA CO.: R&I Downgrades From BB ------------------------------------ Rating and Investment Information, Inc. (R&I) has downgraded the Senior Long-term Credit Rating of Furukawa Co. Ltd. to BB From BB+. Maintained on the Rating Monitor scheme with a view to downgrading ISSUE: Bonds Rated Issue Date Redemption Issue Amount (mn) Unsec. Conv. Bonds No. 1 Dec 11, 1996 Mar 31, 2006 Yen 25,000 Unsec. Str. Bonds No. 3 Oct 18, 2000 Oct 18, 2005 Yen 5,000 Unsec. Str. Bonds No. 4 Dec 20, 2000 Dec 20, 2004 Yen 5,000 Unsec. Str. Bonds No. 5 Dec 20, 2000 Dec 20, 2007 Yen 5,000 RATIONALE: Furukawa Co., Ltd., announced a revision to its September interim results forecasts on September 19, 2003. According to the announcement, the loss accompanying the suspension of operations at the Company's Australian copper refining subsidiary Port Kembla Copper (PKC) will reach 39.3 billion yen on a consolidated basis. The Company's final interim profit will be 31 billion yen in deficit, and the deficit for the full year looks set to be 28.5 billion yen. As a result, consolidated equity capital at the end of September is forecast to decline sharply to about 18 billion yen. Taking into account the risk related to PKC, on February 12 2003, R&I downgraded Furukawa's Senior Long-term Credit Rating from BBB- to BB+ and downgraded the rating for the Company's unsecured bonds from BBB- to BB. With the announcement of the suspension of operations at PKC on July 28 2003, R&I placed Furukawa on its Rating Monitor scheme with a view to downgrading the Company's rating. At that time, Furukawa had not determined the amount of its loss. However, R&I believes that, judging from the amount that it has just announced, the level of losses will have an impact on its future evaluations of the Company's creditworthiness, and it has decided to downgrade the rating. Furukawa is considering a capital increase to bolster equity capital. R&I intend to monitor the Company's capital strategy, and the progress and feasibility of plans to strengthen management, and it will announce new ratings. HIKARI TSUSHIN: JCR Upgrades Rating to BB+ ------------------------------------------ Japan Credit Rating Agency (JCR) has upgraded the ratings on the bonds of Hikari Tsushin Inc. from B+ to BB+. Issues / Amount (billion) / Issue Date / Due Date / Coupon Bonds no.4 Y10 / Nov. 24, 1999 / Nov. 24, 2004 / 1.75% Bonds no.5 Y10 / Nov. 24, 1999 / Nov. 24, 2006 / 2.35% Bonds no.6 Y40 / Dec. 24, 1999 / Dec. 24, 2003 / 1.70% Rationale: Hikari Tsushin's performance has been recently good. It implemented drastic restructuring measures as well as change in business model in the face of deterioration in performance in fiscal year ended August 31, 2000. Expansion in sales of OA equipment also boosted the performance. Hikari Tsushin liquidated the majority of the IT ventures whose performance deteriorated. It is expected to record a net profit for fiscal 2003 ending March 31, 2004. JCR raised the rating for Hikari Tsushin from B+ to BB+, considering that many of the concerns in the rating such as obtaining funds for redemption of bonds and transactions with financial institutions were cleared away. Hikari Tsushin Inc. forecast a consolidated net loss of 4.4 billion yen for the year ending March 31, versus an earlier projected loss of 400 million yen, TCR-AP reported recently. For the seven-month accounting term to March 2002, the Company reported a group net loss of 16.12 billion yen and a pretax loss of 1.52 billion yen. MITSUBISHI ELECTRIC: Releases Revised Sales Forecast for 2004 ------------------------------------------------------------- Mitsubishi Electric Corporation has revised its fiscal 2004 business performance forecasts for the first half and the full- year periods. 1. Forecasts for fiscal 2004 consolidated results, made upon announcement of fiscal 2003 results in April 2003, have been revised as follows: (1) Interim Period (April 2003 - September 2003) (Unit: 100 million yen) Net Sales Income Before Net Income Income Taxes ------------------------------------------- Revised Forecast (A) 15,500 150 20 ------------------------------------------- Original Forecast (B) 15,000 50 0 ------------------------------------------- Change (A-B) 500 100 20 ------------------------------------------- Fiscal 2003 Interim Results 16,389 117 67 ------------------------------------------- (2) Full-Year Period (April 2003 - March 2004) (Unit: 100 million yen) Net Sales Income Before Net Income Income Taxes (Loss) ------------------------------------------- Revised Forecast (A) 33,000 200 120 ------------------------------------------- Original Forecast (B) 32,500 0 50 ------------------------------------------- Change (A-B) 500 200 70 -------------------------------------------- Fiscal 2003 Results 36,390 24 (118) -------------------------------------------- 2. Forecasts for fiscal 2004 non-consolidated results, made upon announcement of fiscal 2003 results in April 2003, have been revised as follows: (1) Interim Period (April 2003 - September 2003) (Unit: 100 million yen) Net Sales Ordinary Net Income Profit ----------------------------------- Revised Forecast (A) 9,000 210 170 ------------------------------------ Original Forecast (B) 8,500 50 50 ------------------------------------ Change (A-B) 500 160 120 ------------------------------------ Fiscal 2003 Interim Results 10,450 90 91 ----------------------------------- (2) Full-Year Period (April 2003 - March 2004) (Unit: 100 million yen) Net Sales Ordinary Net Income Profit (Loss) ------------------------------------ Revised Forecast (A) 20,500 350 290 ------------------------------------ Original Forecast (B) 20,000 250 200 ------------------------------------ Change (A-B) 500 100 90 ------------------------------------- Fiscal 2003 Results 23,192 264 (121) ------------------------------------- 3. Reasons for Forecast Revisions Due to the unseasonably cool summer in Japan, Mitsubishi Electric expects air conditioners and other home appliances to show decreased sales. However, backed by increasing private- sector capital investment in Asia and Japan, sales in industrial automation systems and information and communications systems, both on a consolidated and non-consolidated basis, are expected to outgrow original forecasts. These factors have led Mitsubishi Electric to revise its business performance forecasts, both on a consolidated and non-consolidated basis. 4. Dividend Policy for Fiscal 2004 Regarding the dividend, the Company suspends payment of an interim dividend. The Company plans to implement a dividend payment at the end of the fiscal year after carefully assessing business performance over the full-year. (As a reference, the Fiscal 2003 interim dividend was nil and the year-end was 3 yen.) About Mitsubishi Electric With over 80 years of experience in providing reliable, high- quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation (TSE:6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. The Company has operations in 35 countries and recorded consolidated group sales of 3,639 billion yen (US$30.3 billion (1)) in the year ended March 31, 2003. For more information visit http://global.mitsubishielectric.com. (1) At an exchange rate of 120 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2003. According to Wright Investor's Service, Mitsubishi Electric Corporation has paid no dividends during the last 12 months. The company also reported losses during the previous 12 months. Mitsubishi Electric last paid a dividend during fiscal year 2001, when it paid dividends of 10.00 per share. Contacts: Mitsubishi Electric Corporation Yasumitsu Kugenuma, +81-3-3218-2391 (Investor Relations) Yasumitsu.Kugenuma@hq.melco.co.jp Katsuyuki Hashimoto, +81-3-3218-2346 (Media) katsuyuki.hashimoto@hq.melco.co.jp MITSUBISHI MOTORS: Delists Stock in Japan Exchanges --------------------------------------------------- Mitsubishi Motors Corporation (MMC) will ask the Sapporo, Nagoya and Fukuoka stock exchanges by mid-October to delist its stock due to extremely inactive trading in MMC shares there, according to Kyodo News. MMC stock will be delisted about a month after the three exchanges move it to the liquidation post in order to inform investors of its removal from the markets. Mitsubishi Motors has withdrawn from the development of diesel engines for passenger cars to concentrate on the development of new models, TCR-AP reported recently. The automaker decided to end the costly development of diesel engines following an agreement made the same day between major shareholder DaimlerChrysler AG and German automaker Volkswagen AG to use Volkswagen engines in MMC's passenger cars for the European market. ========= K O R E A ========= CHOHUNG BANK: Shinhan May Consider Capital Increase for Bank ------------------------------------------------------------ The Shinhan Financial Group (SFG) may weigh a capital increase for Chohung Bank to boost the bank's financial health, Asia Pulse reported on Tuesday, citing SFG Chairman Choi Young-hwi. Shinhan Financial Group, whose flagship is Shinhan Bank, signed an agreement in late June to buy the government's 80.04-percent stake in Chohung. Shinhan Bank is the fifth-largest bank. Choi further noted that the financial holding Company has no plans to issue additional American depositary receipts (ADRs), or certificates of stock ownership, on the New York Stock Exchange. CHOHUNG BANK: Discloses 1H03 Financial Results ---------------------------------------------- During the first half of 2003, Chohung Bank's pre-provision income rose by 10.1 percent to W787.5 billion over the same period of 2002, primarily due to an increase in interest income and a remarkable reduction in non-operating loss. However, the Bank recorded a net loss of W419.3 billion in the first half of 2003, as compared to a net income of W53.9 billion the equivalent period of the preceding year, which was mainly due to a significant rise in provision for possible loan losses. The increase in provision for loan losses was mainly the result of increased provisioning for the credit card sector and as wall as for SK Global. The Bank's profitability ratios deteriorated, affected by the net loss. ROA and ROE were (1.28) percent and (36.37) percent in 1H2003, down from 0.19 percent and 3.92 percent a year earlier. The NPL ratio also worsened by 1.80 percentage points to 4.41 percent from 2.61 percent in 1H2002 due to the reclassification of loans to SK Global as well as to the deterioration of asset quality in the retail sector. Major financial ratios: 2Q2002 2Q2003 ROA 0.19% (1.28%) ROE 3.92% (36.37%) BIS 10.61% 9.18% Net Interest Margin (NIM) 3.40% 3.07% NPL ratio 2.61% 4.41% Notes: (1) ROA and ROE calculations are based on non- consolidated data, while the BIS ratio is based on consolidated data. (2) Net interest margin and the NPL ratio calculations are based on FSS standards. As of June 30, 2002, the FSS changed the method of calculating NIM. The new standards exclude the balance of sales subject to settlement on a monthly or installment basis from interest- earning assets and related income from interest income, whereas they add demand deposits to interest-bearing liabilities and related expenses to interest expenses. All of the above-shown NIMs are adjusted according to the new FSS standard. B/S, I/S Highlights: Non-Consolidated Basis Million of Korean Won 1H2002 1H2003 For six months ended June.30 Total income W 2,667,580 W 3,014,815 Total expenses W 2,602,024 W 3,408,869 Income before income taxes W 65,556 W (394,054) Net income W 53,945 W (419,282) Non-Consolidated Basis Millions of Korean Won 4Q2002 1H2003 Loans W 45,328,520 W 46,389,567 Securities W 11,072,577 W 9,458,554 Total assets W 66,196,288 W 66,284,257 Deposits W 45,125,839 W 43,190,924 Total shareholders' equity W 2,292,298 W 2,251,844 KOOKMIN BANK: Faces Stock Sale Investigation -------------------------------------------- South Korea's Financial Supervisory Service (FSS) said it would ask the prosecutor's office to probe Kookmin Bank in connection with its sale of a stake in SK Securities CO. four months ago, the Korea Herald reported Thursday. Kookmin sold 7.28 million shares of SK on May 12; one day before the securities Company announced its plan to write off some of its shares. The Financial Supervisory Service alleged that Kookmin acquired confidential information about the write off beforehand and was thus able to avoid losses potentially as large as 2.8 billion won (US$2.4 million). The watchdog will also file complaints with the prosecution against two Kookmin officials who were in charge of the stock transaction. SK GLOBAL: Chey Tae Won Donates W100B to Company ------------------------------------------------ Chey Tae Won, owner of the SK Group, will contribute 100,000,000,000 won or $85,000,000 in personal assets to SK Networks Co. (formerly known as SK Global Co.) in a attempt to keep SK Global Co. afloat, Sangim Han of Bloomberg News reports. The donation includes a 40 percent stake in Sheraton Walkerhill Hotel and some stakes in three unlisted companies. Creditors will use the donation to partially cover the difference of SK Global Co.'s debts and assets. (SK Global Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., 609/392-0900) =============== M A L A Y S I A =============== KUALA LUMPUR INDUSTRIES: Issues Restructuring Proposal Update ------------------------------------------------------------- On behalf of Kuala Lumpur Industries Holdings Berhad (KLIH) (Special Administrators Appointed), Commerce International Merchant Bankers Berhad announced that the Securities Commission (sc) has, via its letter dated 22 September 2003 approved the Company's application for an extension of time from 19 September 2003 to 31 December 2003 to complete the proposed corporate restructuring within the framework of Pengurusan Danaharta Nasional Berhad Act, 1998. MERCES HOLDINGS: Enters Winding Up Petition ------------------------------------------- The winding up petition of Merces Holdings Berhad (MHB) has been presented to the Kuala Lumpur High Court on 29 July 2003 against MHB by Concrete Engineering Products Berhad (CEPB) and served onto MHB at its registered office on 22 September 2003. The total amount claimed by CEPB against MHB is RM758,994.03 being the judgment sum, interest and costs due as at 18 May 2003 pursuant to the judgment obtained from the Shah Alam High Court by CEPB on 6 November 2002 pertaining to the claim of RM545,859.15 as at 17 March 2001 against the wholly owned subsidiary, Merces Builders Sdn Bhd (MBSB) and MHB as Corporate Guarantor of MBSB, for the supply of pre-stressed spun concrete piles by CEPB to MBSB in relation to the Likas Sport Complex Project in Kota Kinabalu, Sabah (the Likas Project). MBSB had on 11 November 2002 filed in Notice of Appeal for the matter to be heard before Judge in Chambers and the matter has yet to be fixed for hearing of the appeal by the Court as at to-date. MBSB was appointed as Management Contractor for the Likas Project by Demirama Sdn Bhd (Demirama) on 10 January 2001 and the appointment had subsequently been terminated on 22 June 2001. MBSB had on 10 June 2002 taken a legal proceeding against Demirama to claim for RM12,037,320.75 being work done and materials supplied by MBSB for the Likas Project as of the termination date. An arbitrator had then been appointed to hear and decide on the disputes between MBSB and Demirama and the arbitration proceeding is currently in progress. The winding up petition is filed pursuant to Section 218 of the Companies Act, 1965 on the purported ground that MHB is unable to pay its debts and therefore, ought to be wound up by the High Court under the provisions of the Companies Act, 1965 and a liquidator be appointed. The total cost of investment in MBSB is RM93.0 million. The winding up proceedings, if not struck off, will have material financial and operational impact on the MHB Group. Meanwhile, MHB with its solicitors are taking the appropriate actions in response to the winding up petition. Necessary announcement will be made to the Kuala Lumpur Stock Exchange in due course. OLYMPIA INDUSTRIES: Seeks Renewal of Shareholders' Mandate ---------------------------------------------------------- The Board of Directors of Olympia Industries Berhad intends to seek approval from its shareholders for the proposed renewal of the existing shareholders' mandate and proposed new shareholders' mandate for recurrent related party transactions of a revenue or trading nature as well as a general mandate for the provision of financial assistance at the forthcoming annual general meeting of the Company. A circular to shareholders in relation to the above proposals will be sent together with the notice of the annual general meeting to shareholders in due course. RASHID HUSSAIN: Extends Share Option Scheme to October 8 -------------------------------------------------------- Rashid Hussain Berhad refers to its announcement dated 21 April 2003 wherein the Securities Commission (SC) had approved an extension of six (6) months until 8 October 2003, for RHB to implement the RHB Group Employees' Share Option Scheme (ESOS). On behalf of RHB, AmMerchant Bank Berhad announced that it had, on 24 September 2003, submitted an application on behalf of RHB to the SC for a further extension of six (6) months until 8 April 2004, for the implementation of the ESOS. SIN HENG: Seeks Extension of Audit Report to November 30 -------------------------------------------------------- Sin Heng Chan (Malaya) Berhad (Shchan) refers to the announcements made on 31 December 2002, 3 January 2003, 27 February 2003 and 25 March 2003 in relation to the investigative audit to be conducted on the Company pursuant to the conditions imposed by the Securities Commission (SC) in its approval letter dated 27 December 2002. On behalf of the Special Administrators (SA) of SHCM, Southern Investment Bank Berhad announced that the independent auditors have requested the SA to seek an extension of time from the SC to complete the investigative audit report for the Company. Accordingly, the SA has on 24 September 2003 sought an extension of time from the SC until 30 November 2003 for the submission of the investigative audit report to the SC. SJA BERHAD: Reply to SGX Query ------------------------------ SJA Berhad (SJA) reply herewith subject to the ratification and consent of the Official Assignee that the winding-up order granted against the Company on 10th September 2003 by the High Court of Penang was initiated and applied for by Bank Utama (Malaysia) Berhad. The Company had prior to the hearing of the winding-up petition made a proposal on 9th July 2002 to the said Bank to settle the debt owing by the Company. However, the said Bank rejected the proposal on 11th July 2002. The Company did attempt to oppose the winding-up petition by filing Affidavit-in -reply to the Petition but as the amount owing to Bank Utama (Malaysia) Berhad exceeded many times the statutory debts of RM500 under Section 218 of the Companies Act 1965, the Company felt that the inability of repaying the debt to the said Bank is not a defence against the statutory debt having regard to the surrounding circumstances against the Company. The Company had referred the matter to its legal adviser after the winding-up order and it was advised that the Company has no chance to be revived in its next step unless the Company pays all the debts owing to its creditors in full. Query Letter content: We refer to your announcement dated 11 September 2003 in respect of the aforesaid matter. In this connection, kindly inform the Exchange for public release within three (3) market days from the date hereof as to the steps taken or proposed to be taken by your Company in respect of the winding-up order granted against the Company and the appointment of Official Assignee in this respect. LISA LAM Sector Head, Issues & Listing LL/YYT/ZOOS TECHNO ASIA: SC Rejects YSSB Proposal ------------------------------------- AmMerchant Bank Berhad, on behalf of Techno Asia Holdings Berhad (Tahb) Special Administrators Appointed, announced that the Securities Commission (SC) had vide its letter dated 23 September 2003 (which was received on 24 September 2003), rejected the proposal by Yu and Sons Sdn Bhd (YSSB) (a subsidiary Company of Yu Neh Huat Berhad, which is the white knight of TAHB) to pay a dividend of RM10.80 million to the existing shareholders of YSSB as at 31 December 2002 prior to the completion of the restructuring scheme. WING TIEK: Signs 2nd Supplemental Deal With White Knight -------------------------------------------------------- For consistency, the abbreviations used throughout this announcement shall have the same meaning as previously defined in Wing Tiek Holdings Berhad (WTHB)'s announcement dated 30 August 2002 in relation to the Proposed Corporate And Debt Restructuring Scheme (Proposed CDRS). The Board of WTHB announced that the resolutions tabled at the Court-Convened Meeting in relation to the Proposed Share Exchange and at the Extraordinary General Meeting in relation to the Proposed WTHB Land Acquisition and the Proposed WTSP Acquisition held on September 24 were not approved by the required majority of shareholders. The Board of WTHB, together with JAKS Sdn Bhd, Dato' Hj Jamian bin Mohamad, Ang Ken Seng and Ang Lam Poah (collectively known as the White Knight), will deliberate on the next course of action to be taken, if any. Accordingly, the Board of WTHB and the White Knight have in a Second Supplemental Agreement signed Wednesday mutually agreed to extend the time period to 30 June 2004 to fulfil all the conditions precedent including obtaining the requisite approvals as set out in the Principal Agreement. The Board of WTHB will make an appropriate announcement in relation to the above in due course. ===================== P H I L I P P I N E S ===================== PHILIPPINE LONG: ING Upgrades Recommendation to "Buy" ----------------------------------------------------- ING Financial Markets has raised its 12-month target price for Philippine Long Distance Telephone Co. (PLDT) to 780 pesos on expectation that it will be able to pay a cash dividend in 2005, aided by increased dividends from its wireless unit Smart Communications Inc., the Philippine Daily Inquirer reports. ING said it has upgraded its recommendation on PLDT to "buy" from "hold" as it forecasted the company to record an earnings per share growth of percent this year and nine percent in 2004, primarily due to Smart's gains. "Smart's strong performance should accelerate PLDT's debt reduction and enable PLDT itself to pay a cash dividend in 2005," ING said. ING said it believed PLDT's share price rally was not yet over, with Smart continuing to grow its subscriber base. ================= S I N G A P O R E ================= CAPITALAND LIMITED: Unit Enters Voluntary Liquidation ----------------------------------------------------- The Board of Directors of CapitaLand Limited announced that it has placed its 95 percent owned indirect subsidiary, Shanghai Bai Hua Property Investment Consultants Co., Ltd (Bai Hua), under members' voluntary liquidation. A party unrelated to the CapitaLand Group owns the remaining 5 percent of Bai Hua, which is incorporated in the People's Republic of China. The liquidation of Bai Hua is not expected to have any material impact on the net tangible assets or earnings per share of the CapitaLand Group for the financial year ending 31 December 2003. CHARTERED SEMICONDUCTOR: Denies Parent Selling Stake ---------------------------------------------------- Chartered Semiconductor Manufacturing (CSM) has denied the market speculation that Singapore Technologies group (ST Group) would be paring its stake in the Company, Kelive reports. Share price spiked on Friday after a vague rumor ST would sell part of its holdings to an unknown party. Kelive is a little skeptical of the rumor and market's reaction to it. Firstly, if the potential buyer was a financial investor, it would likely be buying at a discount to market price, which does not justify a run up in the share price. Moreover, a sale to a financial investor would increase the supply of Chartered shares, which should ultimately depress its price. Market euphoria may be understandable if the potential buyer were a strategic investor in the form of a large chipmaker like Intel. This may be seen as a vote of confidence for the Company. However, this is highly unlikely as most chipmakers are trying to lighten their balance sheets instead of adding on to them. Moreover, Chartered would be more than happy to form a strategic relationship with any major chipmaker without the need of them taking a stake. Last but not least, regardless of the nature of the potential buyer, given Chartered's constant requirement for cash, it would have made more sense for the company to issue new shares as opposed to selling existing vendor shares. Kelieve believes the share run up in the last few months, and especially on September 17, overdone. Fundamentals may have improved, but not so much as to justify a doubling of share price. Chartered is still expected to incur losses this year and next year. The denial of the rumor is likely to cause a knee- jerk drop in share price. Kelive maintains its sell recommendation on the stock. CHUAN SENG: Releases Notice of Intended Dividend ------------------------------------------------ Chuan Seng Kim Development Pte Ltd. (In Liquidation) issued a notice of intended dividend as follows: Address of registered office: c/o The Liquidator's Office. Last day for receiving proofs: 15th October 2003. Name of Liquidator: Mr Don M Ho, CPA. Address: c/o DON HO & ASSOCIATES Certified Public Accountants Corporate Advisory & Recoveries Equity Plaza 20 Cecil Street #12-02 & 03 Singapore 049705. Tel: 6532 0320 (8 lines). Fax: 6532 0331. FLEXTRONICS INTERNATIONAL: Challenges U.S. Jury Verdict ------------------------------------------------------- Flextronics International Ltd. announced that it is appalled that a jury in Orange County, California, on Thursday returned a verdict against Flextronics, in favor of Beckman Coulter, that totals US$934 million, including US$931 million in punitive damages, in a case that began as a US$2.2 million contract dispute relating to a manufacturing relationship between the companies. "We believe that the verdict is clearly unsupported by either the law or the facts and that the award of punitive damages is excessive and unwarranted, since the jury found only US$3.0 million of actual contract and tort damages to Beckman," said Michael Marks, Chief Executive Officer of Flextronics. Flextronics believes that this verdict should be overturned because it violates California law and Flextronics' right to due process under state and federal constitutions. U.S. Supreme Court rulings as applied in California establish that punitive damages generally must be limited to four times the amount of actual compensatory damages caused by tortious conduct. In this case, the jury found only $800,000 of actual tort damages, meaning punitive damages, if any, should be limited to no more than $3.2 million instead of the $931 million awarded. "We intend to mount a vigorous challenge of this run-away jury verdict, and are fully confident that this award will be almost entirely eliminated in subsequent legal proceedings," said Marks. The judge presiding over the case has not yet entered a judgment on the jury's verdict, and Flextronics expects to file appropriate post trial motions to correct the jury's decision and will appeal if necessary. This award was particularly surprising in light of the testimony by Beckman witnesses that Flextronics did nothing intentionally wrong in the business relationship, which amounted to less than $20 million of revenue over 3 years. During the trial, the court made a number of errors of law that Flextronics believes will require a reversal of this award on appeal, preventing Flextronics from presenting key evidence that would have negated Beckman's tort claims (which gave rise to all of the punitive damages), and erroneously instructing the jury regarding the law. "That this irrational verdict could be rendered, even if subsequently corrected, exemplifies the need for reform of a legal system in which juries are allowed to impose absurd punitive damages," noted Marks. Flextronics will discuss this matter further at a previously scheduled Analyst and Investor Day on September 25, 2003, in New York City. Management presentations will begin at 12:00 Noon EDT. A live Web cast of the presentations will be available at http://www.flextronics.com.A replay of the Web cast will remain available on the Company's website for 90 days after the presentation day. Minimum requirements to listen to the broadcast are Microsoft Windows Media Player software (free download at http://www.microsoft.com/windows/windowsmedia/download/default.a sp) and at least a 28.8 Kbps bandwidth connection to the Internet. In addition, Flextronics plans to make materials related to this case available on its website http://www.flextronics.com. ALIMA VENUS: Issues Notice of Intended Dividend ------------------------------------------------ Kalima Venus Corporation (Singapore) Pte Ltd. issued a notice of intended dividend as follows: Address of Registered Office: Formerly of 17 Phillip Street #05-01 Grand Building Singapore 048695. Court: Supreme Court, Singapore. Number of Matter: Companies Winding Up No. 270 of 2000. Last Day for Receiving Proofs: 26th September 2003. Name & Address of Liquidator: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118. TOH HWEE LIAN Assistant Official Receiver. INFORMATION FUSION: Releases Notice of Preferential Payment ----------------------------------------------------------- Information Fusion Pte Ltd. (In Liquidation) issued a notice of intended preferential payment as follows: Address of Registered Office: c/o The Liquidator's Office. Last day for receiving Proofs: 14th October 2003. Name of Liquidator: Mr Don M Ho, CPA. Address: c/o Don Ho & Associates Certified Public Accountants Corporate Advisory & Recoveries Equity Plaza 20 Cecil Street #12-02 & 03 Singapore 049705. Tel: 65320320 (8 lines). Fax: 65320331. LIP YICK: Issues Winding Up Order Notice ---------------------------------------- Lip Yick Trading Company Private Limited issued a notice of winding up order made on the 12th day of September 2003. Name and address of Liquidator: The Official Receiver Insolvency & Public Trustee's Office 45 Maxwell Road #06-11 The URA Centre (East Wing) Singapore 069118. Messrs RAJAH & TANN Solicitors for the Petitioner. L&M GROUP: Issues Notice of Shareholder's Interests ------------------------------------------------ L&M Group Investments Ltd. issued a notice of substantial shareholder Ho Lee Construction Pte Ltd.'s interests: Date of notice to Company: 22 Sep 2003 Date of change of interest: 12 Jun 2003 Name of registered holder: The Central Depository (Pte) Ltd Circumstance(s) giving rise to the interest: Sales in open market at own discretion Information relating to shares held in the name of the registered holder: - No. of shares which are the subject of the transaction: 5,000,000 % of issued share capital: 0.31 Amount of consideration (excluding brokerage and stamp duties) per share paid or received: 0.02 No. of shares held before the transaction: 83,000,000 % of issued share capital: 5.07 No. of shares held after the transaction: 78,000,000 % of issued share capital: 4.765 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before the transaction: 0 83,000,000 % of issued share capital: 0 5.07 No. of shares held after the transaction: 0 78,000,000 % of issued share capital: 0 4.765 Total shares: 0 78,000,000 L&M GROUP: Appoints SBI E-2 Capital as Financial Adviser -------------------------------------------------------- The Board of Directors of L&M Group Investments Ltd. announced that the Company has on 22 September 2003 appointed SBI E2- Capital Pte Ltd. as the Independent Financial Adviser to prepare the advice to its independent shareholders on the Whitewash Resolutions. Further to the 3rd paragraph of Note 10 of the announcement made on 30 August 2003, L&M Group Investments Ltd announced that the Securities Industry Council has waived the requirement for (i) the Soeryadjaya Family and its concert parties, and (ii) the Bank and its concert parties to make a general offer for the Company following the acquisition by each of 30 percent or more of the Company's voting rights as a result of the loan restructuring exercise subject including the condition that the majority of the independent holders of voting rights of the Company present and voting at a general meeting(s), held before the issue of the new Company shares pursuant to the loan restructuring exercise, approve by way of a poll, two separate resolutions (the Whitewash Resolutions) to waive their rights to receive a general offer from (i) the Soeryadjaya Family (i.e. Mr William Soeryadjaya; Mr Edward Seky Soeryadjaya and Mr Edwin Soeryadjaya) and its concert parties, and (ii) the Bank and its concert parties, respectively; MULTICO-ORCHIDS: Winding Up Hearing Set October 3 ------------------------------------------------- The petition to wind up Multico-Orchids Pte Ltd. is set for hearing before the High Court of the Republic of Singapore on October 3, 2003 at 10 o'clock in the morning. RHB Bank Berhad, a creditor, whose address is situated at 90 Cecil Street #03-00, Singapore 069531, filed the petition with the court on September 11, 2003. The petitioners' solicitors are Messrs Shook Lin & Bok of 1 Robinson Road #18-00, AIA Tower, Singapore 048542. Any person who intends to appear on the hearing of the petition must serve on or send by post to Messrs Shook Lin & Bok a notice in writing not later than twelve o'clock noon of the 2nd day of October 2003 (the day before the day appointed for the hearing of the Petition). SINGAPORE TELECOMMUNICATIONS: Unveils Dissolution of Units ---------------------------------------------------------- Singapore Telecommunications Limited (SingTel) announced that Singapore Telecom Europe Limited and Singapore Telecom International Europe Limited (collectively the Companies), wholly-owned subsidiaries of SingTel, have been dissolved and removed from the register maintained by Companies House, England and Wales, pursuant to Section 652A of the Companies Act 1985 on 9 September 2003. The Companies had ceased to provide consulting, administrative and advisory services in the United Kingdom. SLET PTE: Creditors to Submit Claims by October 20 -------------------------------------------------- Notice is hereby given that the creditors of Slet (Int'l) Pte Ltd. (In Members' Voluntary Liquidation), which is being voluntary wound up, are required on or before the 20th October 2003 to send in their names, addresses and full particulars of their debts or claims and the names, addresses of their solicitors (if any) to the Liquidator of the Company, and if so enquired by notice in writing from the said Liquidator are, by their solicitors or personally, to come in and prove their said 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. RAJARAM MEHTA VENKATESH PRASAD Liquidator. 20 Raffles Place #10-08 Ocean Building Singapore 048620. =============== T H A I L A N D =============== THAI PETROCHEMICAL: Creditors Turn Blind Eye on Unpaid Interests ---------------------------------------------------------------- The President Stock Exchange of Thailand Re: Information Regarding the Participating Scheme Creditors' Resolution With reference to the Thai Petrochemical Industry Public Company Limited's (the company) unpaid interests for the three consecutive months during April, May and June, Please be advised as follows: The company was informed by the Committee of Creditors Wednesday (24 September 2003) that on Monday, 22 September 2003, which was scheduled for the Participating Scheme Creditors to cast their votes for the "Event of Default" as stated under the company's Reorganization Plan for the above unpaid interest, the majority of the Participating Scheme Creditors did not cast their vote for the above unpaid interest as the "Event of Default." Your kind acknowledgement to the above-mentioned matter is highly appreciated. Yours sincerely, Suwit Nivartvong For Plan Administrator Thai Petrochemical Industry PCL TPI POLENE: Krung Thai Bank Pressured to Grant Loan to Prachai -------------------------------------------------------------- Prachai Leophairatana has gained an ally in Finance Minister Suchart Jaovisdha who has allegedly instructed state-owned Krung Thai bank to help the businessman retain his control of TPI Polene. According to the Financial Times, the bank is now evaluating whether to arrange a syndicated loan to TPI Polene, the cement- making subsidiary of troubled Thai Petrochemical Industries. Mr. Prachai, who founded but lost control of Thai Petrochemical two years ago, is currently battling to keep his grip on the cement unit, which creditors want to sell to a foreign partner. TPI Polene's debt is estimated to be US$1 billion. The report said a loan from Krung Thai bank would help Mr. Prachai pay off existing creditors and avoid selling out to a foreign firm. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick, Mavy Nineza-Merlin, Ma. 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 ***