/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/031021.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, October 21, 2003, Vol. 6, No. 208 Headlines A U S T R A L I A EPIC ENERGY: Delays Opening of Data Room by a Week MAYNE GROUP: Bids Totaling AU$800 Million Expected this Week QANTAS AIRWAYS: Enters Low-cost Market to Soften External Shocks QANTAS AIRWAYS: Reorganization Prelude to Future Break-up QANTAS AIRWAYS: Chair Denies Sale of Business Unit Anytime Soon C H I N A & H O N G K O N G CHAMPOINT DEVELOPMENT: Lebanese Company Wants Firm Wound up LINK QUEEN: Winding up Hearing Set Next Week QUEEN EAST: High Court to Hear Winding up Petition November 26 UNIVERSE INTERNATIONAL: Reports HK$29 Million Full-year Net Loss I N D O N E S I A GARUDA INDONESIA: Expands Domestic Fleet as Air Travels Pick up GARUDA INDONESIA: Won't Revive Medan, Amsterdam Flights J A P A N DAIEI INC.: Shares Up 35% on Friday DAIEI INC.: Plans to Open 50 New Outlets in Three Years NAIGAI CO.: Cuts Workforce by 7% on Restructuring MAZDA MOTOR: Enters US$500M Joint Investment in Thailand MITSUBISHI MOTORS: Restructuring Plan Faces Delay MITSUI MINING: SMBC Gives Y20B Capital K O R E A KOOKMIN BANK: Becomes Shareholder of CLS Group Holdings SK NETWORKS: Arab Banks Relent, Sell Loans at a Discount SK GROUP: Prosecutors Face Hurdles in Expediting Bribery Probe SK NETWORKS: Creditors to Sell Part of Chey's Holdings M A L A Y S I A AOKAM PERDANA: Proposes Revised Rescue Scheme ASSOCIATED KAOLIN: Issues Corporate Exercise Update FARLIM GROUP: Releases Financial Assistance Update TECHNO ASIA: SC OKs Waiver Application TECHNO ASIA: Issues Arbitration Proceeding Update P H I L I P P I N E S ABS-CBN BROADCASTING: S&P Assigns 'B+' Rating BALABAC RESOURCES: SEC OKs Capital Hike Proposal BEYOND CABLE: Creditors OK Debt Restructuring S I N G A P O R E AMERITEK PTE: Petition to Wind Up Pending CIRCUITS PLUS: Issues Profit Warning CONTECH REALTY: Unveils October 8 EGM Resolutions EMC VENTURES: Issues Debt Claim Notice to Creditors ITALIAN FASHION: Creditors Must Submit Claims by November 17 KEN-AIR TOURS: Releases First & Final Dividend Notice OAKTECH INDUSTRIES: Issues Winding Up Order Notice SINGAPORE LEASING: Issues Dividend Notice TAT HIN: Winding Up Hearing Set October 31 T H A I L A N D CHRISTIANI & NIELSEN: Posts Update on Business Reorganization KRUNG THAI: Third Quarter Net Profit Reaches THB4.41 Billion MILLENNIUM STEEL: First-half Net Debt Down to THB644 Million RATTANA REAL: Hires Ernst & Young as Auditor SUN TECH: Posts Update on Restructuring Plan TONGKAH HARBOUR: Posts Latest Update on Business Rehabilitation * BOND PRICING: For the week of October 13 - October 17, 2003 - - - - - - - - ================= A U S T R A L I A ================= EPIC ENERGY: Delays Opening of Data Room by a Week -------------------------------------------------- Confidentiality concerns are holding up the sale of the US$1.8 billion in Epic Energy's assets, slowing the plans of one of Australia's biggest pipeline operators, Dow Jones said Monday. A dozen of potential bidders expressed concern at the way the sale is proceeding. A data room for Epic's asset -- consisting of the 1,530-kilometer Dampier-to-Bunbury pipeline and four other pipelines -- was supposed to open yesterday, but was delayed for another week because of said concerns. Accordingly, many bidders, which have business relationships with Epic, are concerned that the data room might reveal details subject of confidentiality agreements. Meanwhile, a Dow Jones source familiar with the sale process also said final bids won't be called for until early next year - - around a month later than the original schedule determined by Epic's advisers: UBS and Carnegie Wylie. He added Epic may still seek "indicative bids" in December, to try and narrow down the field of interested parties ahead of the Australian summer holiday period. Controlled by troubled U.S. utilities El Paso Corp. (EP) and Dominion Resources Inc. (DNIR), Epic is trying to finalize the sale of its 4,112 kilometers of pipelines before a debt standstill agreement with bankers expires in March, Dow Jones said. About 10 parties have expressed interest in buying the Dampier- to-Bunbury pipeline, expected to fetch up to AU$2 billion, according to Dow Jones, while around 15 groups are interested in Epic's other pipelines and a maintenance business. Among those interested in the Dampier pipeline are a consortium of Alinta Ltd. (ALN.AU), Macquarie Bank Ltd. (MBL.AU), and possibly Wesfarmers Ltd. (WES.AU). Australian Pipeline Trust (APA.AU), in which Australian Gas Light Co. (AGL.AU) holds 30%; Canadian group Enbridge Inc. (ENB); Cheung Kong Infrastructure Holdings Ltd. (1038.HK) of Hong Kong; GasNet Australia (GAS.AU); and Singapore Power have also expressed interest in Epic's assets. MAYNE GROUP: Bids Totaling AU$800 Million Expected this Week ------------------------------------------------------------ Speculations abound regarding possibilities that Mayne Group Ltd. will receive an AU$800 million offer for its troubled hospitals business, Reuters said Monday. The rumors sparked Friday a modest rally in the stock market, which pushed Mayne's shares 3.6% up to AU$3.45. This extended Mayne's climb from May's six-year low of AU$2.58. Local media said offers from several buyers are expected to be announced as early as today. The Australian Financial Review, citing company sources, said bidders include Macquarie Bank Ltd, which is leading a consortium bidding for the hospitals with Ramsay Health Care Ltd. Private equity group Catalyst Investment Partners is also in the running, while smaller, not-for-profit Catholic private hospital operator St. John of God Health Care, based in Perth, has indirectly expressed interest in some of Mayne's hospitals in the state of Victoria, Reuters said. QANTAS AIRWAYS: Enters Low-cost Market to Soften External Shocks ---------------------------------------------------------------- Qantas is launching a domestic budget airline in May next year to reduce external shocks and protect its domestic operations from cut-throat competition. Qantas CEO Geoff Dixon told Dow Jones Newswires recently the flag carrier has approached Boeing Co., Airbus and other aircraft lessors about buying or leasing an unspecified number of 737-800 or A320 planes for the new operations. He said the division will have a fleet of 23 aircrafts by mid-2005. In August, the company announced a AU$9 million net loss for the fiscal second-half, which it attributed to the war in Iraq and the outbreak of severe acute respiratory syndrome that discouraged foreign travels. It is these offshore shocks that the company hopes to avoid in the future by strengthening its domestic operations. Qantas, however, faces a formidable rival in the low-cost market. Dow Jones said Virgin Blue will have 42 planes when Qantas' low-cost operations is launched. Qantas' cost base is also 35% higher than Virgin Blue and the company will come "under pressure to cut costs as the no-frills, Brisbane-based rival prepares to enter the market for flights between Australia and New Zealand next year," Dow Jones said. Virgin intends to capture 50% of the domestic market in the coming years. It currently controls 30% of market. QANTAS AIRWAYS: Reorganization Prelude to Future Break-up --------------------------------------------------------- Qantas CEO Geoff Dixon admits the reorganization of the company into 10 business units might eventually lead to the breakup of the flag carrier, Dow Jones Monday. Appearing on Australian Broadcast Corp. television, Mr. Dixon said the restructuring does make the "floating" of different units a possibility. "It always has been the case, but certainly after we finish our restructure all of them could be quite easily floated off," Dow Jones quoted Mr. Dixon as saying. "We could float off the regional airline, we could float off Australian Airlines, we could float off our catering division, we could float off Qantas Holidays." Dow Jones said the company expects over the next two years to derive AU$1 billion in cost savings from this reorganization. The company is facing stiff competition in the domestic market, which is slowly being eaten up by budget carrier, Virgin Blue. Late last week, the company announced it will open its own budget airline next year. The reorganization will group operations into these divisions: sales and marketing, engineering, airports/catering, three more flying divisions and four associated operations covering freight, holidays, defense services and consulting. QANTAS AIRWAYS: Chair Denies Sale of Business Unit Anytime Soon --------------------------------------------------------------- Qantas Chairperson Margaret Jackson denies the company is planning to break up its operations sometime in the future, clarifying the pronouncement of CEO Geoff Dixon over the weekend. "We have no intention at this point to be floating any of our businesses off," Ms. Jackson told the Nine Network's Business Sunday program. She, however, would not rule out such a move in future: "It doesn't mean that sometime in the future your intention changes or circumstances change, or opportunities emerge, but at the moment we are very happy with the mix of businesses that we have. We think there is some great opportunities for growth in those businesses." Meanwhile, Ms. Jackson defended the company's decision to enter the domestic budget airline business and denied it is an act of desperation: "I don't think it (has) a hint of desperation. It is just us looking at the market, looking at what we can do to service the market better, what can we do to underpin tourism in Australia." "Starting a low cost carrier, what we know is that people are sensitive to price and we believe that we might be able to also stimulate the demand for travel," she said. The decision will bring Qantas head-to-head with Virgin Blue, which currently controls 30% of the domestic market. It plans to capture 50% of the domestic market in the future, a plan that analysts believe is the real reason behind Qantas' decision to launch its very own budget airline. ============================ C H I N A & H O N G K O N G ============================ CHAMPOINT DEVELOPMENT: Lebanese Company Wants Firm Wound up ----------------------------------------------------------- The High Court of Hong Kong will hear on November 12, 2003 at 9:30 a.m. the petition seeking the winding up of Champoint Development Limited. Linvest S.A.L. of 1st Floor, 120 Building, Zouk-mikael, Lebanon filed the petition on September 16, 2003. Chiu, Szeto & Cheng represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Chiu, Szeto & Cheng, which holds office on the 17th Floor, C.M.A. Building, 64 Connaught Road Central Hong Kong. LINK QUEEN: Winding up Hearing Set Next Week -------------------------------------------- The High Court of Hong Kong will hear on October 29, 2003 at 10:00 a.m. the petition seeking the winding up of Link Queen Industries Limited. Bank of China (Hong Kong) Limited (the successor corporation to The China and South Sea Bank Limited pursuant to Bank of China (Hong Kong) Limited (Merger) Ordinance (Cap. 1167) of 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong filed the petition on September 3, 2003. Chu & Lau represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Chu & Lau, which holds office on the 2nd Floor, The Chinese General Chamber of Commerce Bldg., No. 24-25 Connaught Road Central Hong Kong. QUEEN EAST: High Court to Hear Winding up Petition November 26 -------------------------------------------------------------- The High Court of Hong Kong will hear on November 26, 2003 at 10:00 a.m. the petition seeking the winding up of Queen East Enterprises Limited. Bank of China (Hong Kong) Limited of 14/F., Bank of China Tower, No. 1 Garden Road, Central, Hong Kong filed the petition on October 3, 2003. Messrs. Wat & Co. represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Messrs. Wat & Co., which holds office on the 12th Floor, Chuang's Tower, 30-32 Connaught Road Central Hong Kong. UNIVERSE INTERNATIONAL: Reports HK$29 Million Full-year Net Loss ---------------------------------------------------------------- Universe International Holdings Ltd. reported a full-year net loss of HK$29.46 million from a profit of HK$10.03 million in 2002, according to AFX-Asia. This, as sales dropped to HK$251 million from HK$306.74 million. The company did not declare a dividend for the year. ================= I N D O N E S I A ================= GARUDA INDONESIA: Expands Domestic Fleet as Air Travels Pick up --------------------------------------------------------------- Growing demands for domestic flights has encouraged Garuda Airlines to expand its domestic services fleet. According to Asia Pulse, the carrier will lease 10 Boeing 737-200 aircraft to expand the capacity of the domestic operations, which is being handled by Citilink. Garuda President Indra Setiawan said Citilink currently operates 5 Fokker 28 aircraft. She said Citilink needs to use large aircraft to meet the surging demands. Citilink is targeting 1.5 million domestic passengers a year. GARUDA INDONESIA: Won't Revive Medan, Amsterdam Flights ------------------------------------------------------- Despite calls for the revival of the Medan and Amsterdam air links due to increased demands, Garuda Indonesia Airways is not biting, Asia Pulse said. Sumatra's provincial tourism board recently said it has noticed an increased demand from the European tourists, who want the route to reopen. But Garuda General Manager Nasrizal said the cost of doing this is significantly higher than the benefits. He said Garuda's plan is to open the Medan-Singapore flight route on October 26. "Garuda has been serving the Singapore-Amsterdam direct route, so European tourists could take a connecting flight from Singapore to Medan," he told Asia Pulse in an interview. From 1992 to April 1997, Garuda served the Amsterdam-Medan- Denpasar and Frankfurt-Singapore-Medan flight routes but the services were halted due to a decline in the number of passengers, as a result of the domestic security situation at that time, Asia Pulse said. ========= J A P A N ========= DAIEI INC.: Shares Up 35% on Friday ----------------------------------- Shares in ailing retailer Daiei Inc. increased 35 percent to a 21-month high on Friday after it reported a 10.5 percent increase in interim operating profits, the Financial Times reports. Group net profit dropped 98 percent to Y2.3bn ($21m) in the six months that ended in August compared with the same period last year. Sales fell 15 percent to 992 billion yen after Japan's coolest summer in decade-dented sales of seasonal products. However, operating profits rose to 22.7 billion, boosted by the closure of loss-making stores and the withdrawal from unprofitable operations. DAIEI INC.: Plans to Open 50 New Outlets in Three Years ------------------------------------------------------- Struggling retailer Daiei Inc. plans to open 50 new outlets in the next three years by using a fund set up last year to help rehabilitate the firm, Kyodo News reported on Friday. Daiei, once the nation's largest supermarket operator, closed many outlets during the past few years as part of its restructuring program. NAIGAI CO.: Cuts Workforce by 7% on Restructuring ------------------------------------------------- Apparel maker Naigai Co. will cut 50 jobs, or about 7 percent of its workforce, through early retirement by the end of this year as part of a new three-year restructuring program. The Company's early retirement is targeted at employees aged between 45 and 58. The decisions were in response to increasing price competition with low-price imports, which have dimmed the subsidiary's business prospects. The restructuring program will formally take effect on February 1, 2004. MAZDA MOTOR: Enters US$500M Joint Investment in Thailand -------------------------------------------------------- Mazda Motor Corporation and Ford Motor Company announced that the automakers would invest an additional US$500 million (21 billion Baht) in their joint venture, AutoAlliance (Thailand) Company Limited (AAT). The additional investments will be made over the next several years to support new vehicle programs and expansion of the plant's capacity. Ford Motor Company Chairman and Chief Executive Officer William Clay Ford, Jr. made this announcement after a private meeting with Prime Minister Pol. Lt. Col. Dr. Thaksin Shinatwatra in Thailand. The announcements mark a new chapter for AAT. Within the next three years, AAT will embark on a growth plan driven by new vehicle programs, with investments in facility upgrades, additional tooling and engineering, as well as an expansion of the plant's capacity to 200,000 units (both CBU and CKD), up from the current 135,000. Thailand is an outstanding success story for Mazda and Ford in the Asia Pacific. One of the reasons for the success can be attributed to the Thai government's open policy towards foreign investment. These include not only economic incentives and relaxation of foreign ownership restrictions but also the policies and economic stability. Thailand also offers the additional advantages of a large domestic market, the biggest pick-up market outside of the United States, excellent energy and transportation infrastructure, strong supply base and available pool of skilled labor. These were reasons that compelled Mazda and Ford to invest an initial US$500 million in establishing AutoAlliance Thailand in 1995, which has since proven to be a sound and rewarding investment for both companies. Despite the economic downturn of 1997, AAT had thrived as a global exporter of one-ton pickups. AAT's operations have contributed to increased revenue and a positive trade balance of more than US$1 billion (48 billion Baht) to Thailand since the automakers started exporting the Mazda Fighter and Ford Ranger in 1998. AAT has surpassed 300,000 units production and is exporting the Fighter and Ranger to more than 130 markets worldwide, including Europe, South Africa, Australia, New Zealand and Asia. AAT's many achievements should be credited to its strong management team and employees, which itself speaks volumes of the successful partnership between Mazda and Ford that combines the best of Mazda's engineering expertise with Ford's global truck and SUV heritage. About Mazda Motor Corporation Mazda Motor Corporation (TSE: 7261) was established in 1920 and is one of Japan's leading automobile manufacturers. With its headquarters in Hiroshima, Mazda has two plants in Japan and manufacturing and assembly operations in sixteen other countries. Mazda cars and trucks are sold in more than one hundred and thirty countries. Ford Motor and Mazda agreed to collaborate in 1979, Ford Motor Company started investing in Mazda and increased its shareholding to 33.39 percent as of March 31, 1999. For further information, please visit the Mazda Motor Corporation home page at: www.mazda.com/flash.html About Ford Motor Company Ford Motor Company (NYSE: F) The principal activities of the Group are within two principal business segments. The Automotive segment consists of the design, manufacture, sale and service of cars and trucks, automotive components and systems. The Financial Services segment consists of vehicle-related financing, leasing and insurance, renting and leasing of cars and trucks and renting industrial and construction equipment and other activities. The Financial sector is operated through two subsidiaries, The Ford Credit Company and The Hertz Corporation. The Company operates in North America, South America, Europe, Africa and Asia-Pacific. In 2001, the Company acquired the remaining interest of 18 percent in Hertz Corporation. Automotive accounted for 81 percent of 2002 revenues; Ford credit services, 15 percent; automobile rental & leasing, 3 percent & other financial services, 1 percent. For further information, please visit the Ford Motor Company home page at: www.ford.com According to Wright Investor's Service, at the end of 2003, Mazda Motor had negative working capital, as current liabilities were 910.67 billion yen while total current assets were only 745.75 billion yen. Contact: Mazda Motor Corporation Mr K. Yoshitake yoshitake.k@tky.mazda.co.jp +81-3-3508-5022 MITSUBISHI MOTORS: Restructuring Plan Faces Delay ------------------------------------------------- Mitsubishi Motors Corporation's restructuring program will take longer than planned due to problems in the United States, AFX News reports, citing Mitsubishi Motors Corporation President Rolf Eckrodt. Eckrodt said the price war and the weak dollar are currently damaging the Company's balance sheet. Eckrodt added he is sure that in 2004 DaimlerChrysler will lift its stake in Mitsubishi to 50 percent. MITSUI MINING: SMBC Gives Y20B Capital -------------------------------------- Sumitomo Mitsui Banking Corporation will inject 20 billion yen in capital to struggling natural resources firm Mitsui Mining Co. to pave the way for the state-backed Industrial Revitalization Corporation of Japan to bail out the firm, according to Kyodo News. In line with the planned recapitalization, the mining Company will shut down some unprofitable business divisions, while eliminating more jobs from its workforce. ========= K O R E A ========= KOOKMIN BANK: Becomes Shareholder of CLS Group Holdings ------------------------------------------------------- CLS Group Holdings AG (CLS Group) announced that Korea Exchange Bank and Kookmin Bank have become shareholders of CLS Group, bringing the total number of banking and financial institutions as shareholders to 69. They join a shareholder group that consists of many of the world's largest commercial and investment banking organizations. This follows the recent announcement that the Board of Directors of CLS Bank International (CLS Bank) has endorsed, in principle, the inclusion of the Korean Won as a CLS Bank eligible currency once all the requirements in CLS Bank's rules have been satisfied and the necessary regulatory approvals have been obtained. The two banks in due course will apply to become Members of CLS Bank, the provider of Continuous Linked Settlement (CLS(R)), a global banking settlement system for the foreign exchange market. CLS Bank links eleven of the world's central banks and many of the world's leading financial institutions. A total of 54 banks are now settling live instructions for foreign exchange trades through CLS Bank, with over 90 Settlement Member customers (third parties) also live. CLS Bank is now settling on average over 100,000 payment instructions derived from foreign exchange deals submitted each day by its Settlement Members, with a gross value of approximately $US 1 trillion. Joseph De Feo, CEO of CLS Group and President and CEO of CLS Bank International added, "I am pleased to welcome the latest additions to our growing shareholder group. As we add more shareholders and currencies we are achieving our objective of increasing the value of the CLS service for our shareholders and the financial services market globally. We now look forward to delivering our risk, liquidity and efficiency benefits to a wider section of the market." Mr. Hans-Bernhard Merforth, Senior Managing Director, Head of International Business Unit of Korea Exchange Bank, said, "KEB has acted successfully as the main inter-bank foreign exchange clearer since its inception. Once a Member of CLS Bank, KEB as a flagship foreign and trade finance bank will be able to provide a top-rated settlement service to customers under the CLS system, thereby significantly reducing settlement risk." Mr Sung-Hyun Chung, Executive Vice President of Kookmin Bank said: "Kookmin Bank is a leading commercial bank in Korea with an emphasis on international finance and clearing services. Once a Member of CLS Bank, Kookmin Bank will be able to provide settlement risk free FX settlement services to customers through the CLS system. The service will significantly reduce latent settlement risk thereby increasing both foreign currency transactions and international transactions in the Korean Won." Notes to editors: CLS Group and CLS Bank: Continuous Linked Settlement (CLS(TM)) is a unique process that enables cross border currency transactions to be settled intraday on a payment versus payment basis. It is a real time, global settlement system that eliminates the settlement risk caused by delays arising from settlement across time zones. CLS represents the most dramatic change in FX settlement in over 300 years - previously banks had to rely on a global network of correspondents and a degree of faith that they had received their payments in one currency as they paid away another - CLS turns this faith into certainty. The CLS service is offered by CLS Bank International (CLS Bank), and is supported by over 65 of the world's largest global financial institutions. Together they account for a substantial majority of the cross-currency transactions across the globe. CLS Bank links to the Real Time Gross Settlement systems operated by Central Banks in eleven currencies (US Dollar, Euro, UK Sterling, Japanese Yen, Swiss Franc, Canadian Dollar, Australian Dollar, Swedish Krona, Danish Krone, Norwegian Krone and the Singapore Dollar). Additional currencies will be added over time with the Hong Kong Dollar, the New Zealand Dollar and the Korean Won due to become CLS Bank eligible currencies once all the requirements in CLS Bank's Rules have been satisfied and regulatory approval has been obtained. CLS Bank is based in New York and does the Federal Reserve supervise an Edge Corporation bank. CLS is a registered trademark of CLS UK Intermediate Holdings Ltd. For a list of Settlement Members and media contacts visit the CLS Website at www.cls-group.com CONTACT: CLS Group Julian Hargood, +44 (0)20 7971 5848 corpcom@cls-group.com www.cls-group.com or Weber Shandwick Melissa Rowling, +44 (0)20 7067 0712 mrowling@webershandwick.com SK NETWORKS: Arab Banks Relent, Sell Loans at a Discount -------------------------------------------------------- Arab Banking Corporation verbally notified SK Networks' South Korean lenders of its intention to sell their loans to SK Networks Co. at a discount, Bloomberg News reports. According to Bloomberg News, with the Arab lenders' participation, foreign banks are closer to a bonus payment of five cents on the dollar. SK Networks owe the foreign banks about 830 billion won or $720,000,000. Lenders, who have to sell debt at 43 cents for every dollar owed, hold 95 percent of debt owed by the overseas affiliates of SK Networks. (SK Global Bankruptcy News, Issue No. 6; Bankruptcy Creditors' Service, Inc., 609/392-0900) SK GROUP: Prosecutors Face Hurdles in Expediting Bribery Probe -------------------------------------------------------------- The prosecution's investigation into bribery allegations involving senior lawmakers and SK Group faces major problems as prosecutors have yet to secure sufficient material evidence, Yonhap News said on Monday. Prosecutors fear delays in investigating the allegations could inordinately influence the political landscape toward the end of this year when the national vote of confidence called for by President Roh Moo-hyun is to take place, around December 15. SK NETWORKS: Creditors to Sell Part of Chey's Holdings ------------------------------------------------------ Creditors of SK Networks will sell a part of SK Group Chairman Chey Tae-won's holdings by the end of the year to help normalize the troubled trading unit of the nation's third largest conglomerate, according to Yonhap News. Chey's personal holdings to be disposed are his stakes in the Sheraton Grande Walkerhill Hotel and two venture firms, Inoace and Contents. =============== M A L A Y S I A =============== AOKAM PERDANA: Proposes Revised Rescue Scheme --------------------------------------------- Aokam Perdana Bhd refers to the announcements made on 19 September 2003 and 14 October 2003 in relation to the revisions made to some of the terms of the Proposed Rescue Scheme (Revised Scheme). On behalf of the Board, Southern Investment Bank Berhad announced that the application on the Revised Scheme has been made to the Securities Commission on 15 October 2003. On behalf of the Board, Southern Investment Bank Berhad (SIBB) announced that Aokam had, in its letter dated 14 October 2003 to the vendors of Key Heights Sdn Bhd (KHSB), namely Amalan Menang Sdn Bhd (AMSB), Ong Sok Hean and Samudera Sentosa Sdn Bhd (Samudera), mutually agreed to revise the mode of settlement in relation to the proposed acquisition of the entire issued and paid-up share capital of KHSB comprising 6,000,002 ordinary shares of RM1.00 each (Shares) (Proposed Acquisition). The proposed revision is as follows: As announced on 19 Sep As Revised RM RM Purchase consideration for the proposed acquisition of RM94,536,000 is to be satisfied as follows: New Aokam Shares at par 69,536,000 71,036,000 1.5% 3-year Irredeemable 25,000,000 23,500,000 Convertible Unsecured Loan Stocks with free detachable warrants (Warrants) ------------ ----------- TOTAL 94,536,000 94,536,000 ASSOCIATED KAOLIN: Issues Corporate Exercise Update --------------------------------------------------- Associated Kaolin Industries Berhad (AKI) (Special Administrators Appointed) announced: Contents: I Capital Reduction; II Termination of AKI's outstanding warrants 1996/2005; III Share exchange of 5,465,023 ordinary shares of rm1.00 each in AKI (AKI shares) on the basis of one (1) new ordinary share of rm1.00 each in Greatpac Holdings Berhad (GHB) (GHB share) for every one (1) AKI share held (share exchange); Iv Renounceable rights issue of up to 16,395,070 new GHB shares on the basis of three (3) new GHB shares for every one (1) existing GHB share held after the share exchange at an issue price of rm1.00 per GHB share (Rights Issue); V Special Bumiputera Issue (SBI) of 25,000,000 new GHB shares to bumiputera investors at an issue price of rm1.00 per GHB share (SBI); Vi Acquisition of the entire equity interest in Greatpac Sdn Bhd (GPSB) by GHB for a total consideration of rm72,000,000 to be satisfied by the issuance of 72,000,000 new GHB shares at an issue price of rm1.00 per GHB share (GPSH Acquisition); Vii acquisition of the entire equity interest in success profile SDN BHD (success profile) by GHB for a total consideration of rm17,727,272 to be satisfied by the issuance of 17,727,272 new GHB shares at an issue price of rm1.00 per GHB share (success profile acquisition); Viii debt restructuring of AKI; IX Waiver from undertaking a mandatory general offer (waiver); and X Transfer of listing status of AKI to GHB (transfer of listing) (Collectively To Be Referred To As Corporate Exercise) The Company refers to the announcements made on behalf of AKI dated 26 September 2001, 2 October 2001, 3 October 2001, 29 January 2002, 22 February 2002, 15 July 2002, 17 January 2003, 10 March 2003, 17 March 2003, 3 April 2003, 12 May 2003, 25 June 2003, 30 July 2003 and 13 August 2003. On behalf of AKI, Commerce International Merchant Bankers Berhad wishes to announce that pursuant to the modified workout proposal dated 13 June 2003 (Modified Workout Proposal), Starguard Resources Sdn Bhd, Saporiti Resources Sdn Bhd, Shucho Asia Trading Sdn Bhd and Poh Kim Heng (the "Grantees) have on 16 October 2003 entered into an option agreement (Option Agreement) comprising a put option (Put Option) and a call option (Call Option) on certain GHB Option Shares (as defined therein) with the creditors of AKI through the creditors' agent, Horwath (AF No. 1018) (Creditors' Agent) upon the terms and subject to the conditions contained therein. The salient terms of the Put Option include, inter-alia, the following: 1. The Grantees will irrevocably grant the Creditors' Agent the Put Option to require the Grantees to purchase up to 25,705,933 ordinary shares in GHB of RM1.00 each (GHB Option Shares) from the Creditors' Agent based on the terms as specified in Table 1. 2. The Put Option may only be exercised by the Creditors' Agent. 3. Right to sell The Creditors' Agent shall be entitled to sell the GHB Option Shares at any time it deems fit without giving any prior notice to the Grantees provided always that the GHB Option Shares are sold for at least RM1.30 per GHB Share and the Grantees have not exercised the Call Option on such GHB Option Shares. 4. Security The deposit by the Grantees of up to 25,705,933 security shares (Security Shares) less all such proceeds raised from the Rights Issue and the SBI, in accordance with the Respective Proportions (as described in Table 1). In respect of the Security Shares, which shall comprise such GHB Shares, which will be subjected to a one-year moratorium from the date of the listing of GHB Shares on the Kuala Lumpur Stock Exchange imposed by the SC. The Grantees shall at all times ensure that the aggregate number of Security Shares held by the Creditors' Agent shall at all times be no less than the number of GHB Option Shares from time to time held by the Creditors' Agent. Any Security Shares held in excess of one (1) time the number of GHB Option Shares held by the Creditors' Agent should be released to the Grantees. If any of the Grantees are in default of their respective obligations to buy the GHB Option Shares pursuant to the Option Agreement, then the Creditors' Agent shall not be obliged to release any of the Security Shares pledged by the defaulting Grantee(s) until all the GHB Options Shares have been sold and all shortfall arising there from (if any) have been recouped from the proceeds of sale of the respective Security Shares. The salient terms of the Call Option include, inter-alia, the following: 1. The Creditors' Agent, on behalf of the creditors of AKI will irrevocably grant the Call Option to the Grantees to require the Creditors' Agent to sell up to 20,564,746 GHB Option Shares to the Grantees based on the terms as specified in Table 2. 2. The Call Option may only be exercised by each of the Grantees based on the terms in Table 2. 3. If the Grantees fail to pay for such GHB Option Shares upon the exercise of the Call Option (Unpaid Called GHB Option Shares), then the Creditors' Agent shall be entitled to put such number of called GHB Option Shares back to the Grantees in which event the Grantees are obliged to purchase the Unpaid Called GHB Option Shares at a price of RM1.06 per GHB Option Share (if the call is made during the First Call Option Period, as described in Table 2) or RM1.12 per GHB Option Share (if the call is made during the Second Call Option Period, described in Table 2). The Put Option granted by the Grantees to the Creditors' Agent and the Call Option granted by the Creditors' Agent to the Grantees are subject to the following conditions precedent being obtained namely: (a) the approvals of the Securities Commission, the Ministry of International Trade and Industry, and the Foreign Investment Committee; (b) the issue of the GHB Option Shares by GHB to or in favour of the Creditors' Agent and/or their nominees pursuant to the Modified Workout Proposal; (c) the approval of the Kuala Lumpur Stock Exchange for the Transfer of Listing and the listing of and quotation of the GHB Shares to be issued pursuant to the Corporate Exercise; (d) the approvals of other relevant bodies, authorities or regulatory bodies as the Special Administrators of AKI may deem necessary or expedient for the Modified Workout Proposal; (e) the completion of the Corporate Exercise; and (f) the approvals, consents or waivers from any relevant regulatory authorities or third parties which are necessary for the grant of each of the Put Option and the Call Option or the performance and completion of the transactions contemplated in the Option Agreement. The Option Agreement dated 16 October 2003 can be inspected at the Registered Office of AKI at 9A Persiaran Greentown 7, Greentown Business Centre, 30450, Ipoh, Perak Darul Ridzuan during office hours for a period of three (3) months from the date of this announcement. FARLIM GROUP: Releases Financial Assistance Update -------------------------------------------------- Pursuant to Paragraphs 8.23 and 10.08 of the Listing Requirements of Kuala Lumpur Stock Exchange, FARLIM GROUP (MALAYSIA) BHD announced the financial assistance rendered or made on October 17, 2003 as set out in the annexure. For more information, please go to http://announcements.klse.com.my/linkwebmainpage.nsf/lca.htm TECHNO ASIA: SC OKs Waiver Application -------------------------------------- AmMerchant Bank Berhad, on behalf of Techno Asia Holdings Berhad (TAHB), announced that the Securities Commission (SC) has vide its letter dated 14 October 2003 (which was received on 15 October 2003) approved the Company's application for the following waivers in relation to the SC's conditions on provision of debts and lands of Kar Sin Berhad (KSB) and its subsidiaries (KSB Group) and Yu & Sons Sdn Bhd (YSSB), in connection with the Proposed Restructuring of TAHB, as announced on 20 December 2002: 1. Provisions for debts as at 30 April 2003, in relation to debts, which are above six (6) months (Debts) of KSB Group and YSSB, save for KSB's debts under the "Others" category. In relation to the KSB's Debts under the "Retention Sum" category, the retention must fall within the retention period as stated in the contracts/agreements. Full provision must be made for retention sums which are disputed or which are above six (6) months after the retention period. 2. Previous conditions imposed on: a. Phase 2J, Mukim Sitiawan, Daerah Manjung, Perak; b. Lot A3 and A4, Mukim Lumut, Daerah Manjung, Perak; c. PT 6676, Lot 9445, 9240 to 9248, Mukim Lumut, Daerah Manjung, Perak; and d. Lot 966 and 985, Mukim Sitiawan, Daerah Manjung, Perak. Please kindly refer below for further details on the new conditions imposed by the SC on the abovementioned pieces of land. Land: SC Conditions Phase 2J: None. Lot A3 and A4, Mukim Lumut, Daerah Manjung, Perak 1. To provide SC with a written undertaking that Yu Neh Huat Bhd (YNHB) will use its best efforts to transfer and register these lands to KSB within six (6) months from the issue date of the separate land titles by the relevant authorities; and 2. To make quarterly announcements to the Kuala Lumpur Stock Exchange (KLSE) on the status of application and a copy of the announcement must be forwarded to the SC. PT 6676, Lot 9445, 9240 to 9248, Mukim Lumut, Daerah Manjung, Perak 1. To provide SC with a written undertaking that YNHB will use its best endeavours to amalgamate the land titles within one (1) year from the date of the SC waiver letter i.e. 14 October 2003; and 2. To make quarterly announcements to the KLSE on the status of application and a copy of the announcement must be forwarded to the SC. Lot 966 and 985, Mukim Sitiawan, Daerah Manjung, Perak 1. To provide SC with a written undertaking that YNHB will use its best efforts to transfer and register these land to KSB within six (6) months from the date of SC waiver letter i.e. 14 October 2003; and 2. To provide SC with a monthly status report. TECHNO ASIA: Issues Arbitration Proceeding Update ------------------------------------------------- Further to the announcement dated 5 July 2002, on the initiation of arbitration proceedings in respect of two (2) claims, the Special Administrators of Techno Asia Holdings Bhd. (Special Administrators Appointed) announced an update of the arbitration proceedings as follows: 1. The first claim made by Techno Asia Holdings Berhad (Special Administrators Appointed) (the Company) together with Westmont Offshore Sdn Bhd (WOSB) as claimants against Westmont Power (Bangladesh) Ltd (WPBL) as respondent has been deemed withdrawn pursuant to Article 30(4) of the International Chamber of Commerce (ICC) Rules of Arbitration. Whilst the Claimants had deposited their portion of the required deposit, the Respondent's portion of the deposit to be placed with the International Court of Arbitration was not made resulting in the arbitration proceedings deemed to be withdrawn. 2. The second claim was made by WOSB as Claimant against WPBL and Energycorp (UK) Ltd (EUK) as Respondents. The Claimant and Respondents are in the midst of exchanging pleadings and documents. Only upon completion of this exchange will the hearing date be fixed. ===================== P H I L I P P I N E S ===================== ABS-CBN BROADCASTING: S&P Assigns 'B+' Rating --------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' long-term rating and 'B' short-term rating to ABS-CBN Broadcasting Corp. (ABS-CBN). The outlook is stable. At the same time, Standard & Poor's also assigned its 'B+' rating to ABS-CBN's proposed US$150 million senior secured notes issue. ABS-CBN is the leading media and entertainment Company in the Philippines. It is a part of the Philippines-based Benpres group, which owns several other businesses such as electricity and water utilities, toll roads, real estate developments and hospitals. In the six months ended June 2003, ABS-CBN had revenues of Philippine peso (PHP) 6.9 billion (US$126 million), and net income of PHP507 million. "A key constraining factor in ABS-CBN's rating is the financially distressed situation of its owner Benpres, which controls 85 percent of shareholders' voting rights in ABS-CBN," said Sharad Jain, credit analyst and director in Standard & Poor's Corporate and Infrastructure Ratings Group. Benpres has been unable to repay maturing debts since June 2002 and is currently negotiating with its bankers to restructure its debt of US$550 million. "The proposed note issuance incorporates a ring-fencing mechanism to reduce the risk of commingling of ABS-CBN's cash flows with those of its parent and associate companies, through loans, aggressive dividend payouts, or capital returns. However, the ring fencing is weakened by the lack of creditors' control on the nomination of the independent directors," said Mr. Jain. ABS-CBN's creditworthiness is also protected from its parent's weak financial profile because under the Philippine law, the insolvency of, or an action of insolvency against a Company is unlikely to trigger the insolvency of its subsidiary, or automatically permit the filing of an involuntary insolvency action against the subsidiary. Although ABS-CBN's liquidity is adequate to repay the debts maturing in 2003, its ability to repay debts maturing in 2004 and 2005, totaling about PHP4 billion, remains linked to its success in the placement of its proposed US$150 million notes. "The weaknesses in ABS-CBN's credit profile are partly offset by its dominant position in the free-to-air TV market in the Philippines. In 2002, ABS-CBN's two main television channels (channel 2 and channel 23) had a combined audience share of 46 percent and airtime advertising revenue share of about 62 percent in the Mega-Manila region. Furthermore, foreign ownership restriction, limited spectrum availability, and high capital required to compete effectively combine to create a high barrier to entry into the TV broadcasting business," added Mr. Jain. BALABAC RESOURCES: SEC OKs Capital Hike Proposal ------------------------------------------------ The Securities and Exchange Commission (SEC) has approved Balabac Resources and Holdings Co. Inc.'s application to hike its authorized capital stock by six times its current level, paving the entry of beer and tobacco magnate Luico Tan into the firm, according to Business World. Mining firm Balabac Resources asked the SEC to increase its authorized capital to PhP5 billion from PhP73.778 million to allow Saturn Holdings Corporation, a Company owned by Mr. Tan, to acquire 1.23 billion shares of the firm equivalent to a 93 percent stake. Saturn Holdings owns a 2.13 percent stake in Tanduay Holdings, Inc. The SEC has also exempted its plan to issue the 1.23 billion common shares, with a par value of PhP1 apiece, from registration requirements. The SEC exempted the share issue from its stringent registration requirements since it will be issued to not more than 20 individuals. BEYOND CABLE: Creditors OK Debt Restructuring --------------------------------------------- Beyond Cable Holdings Inc, the joint venture between the Lopez group's SkyCable and Home Cable of Philippine Long Distance Telephone Co., has formally agreed with creditors to restructure 2.50 billion pesos in debts, reports AFX Asia. Both SkyCable Chairman Eugenio Lopez III said the parties have signed a memorandum of agreement (MoA), paving the way for the full merger of SkyCable and Home Cable, and the injection of fresh capital in Beyond Holdings by a new investor. The Lopez group's Benpres Holdings owns SkyCable, while PLDT Beneficial Trust Fund's MediaQuest Holdings Corp owns Home Cable. ================= S I N G A P O R E ================= AMERITEK PTE: Petition to Wind Up Pending ----------------------------------------- The petition to wind up Ameritek (Singapore) Pte Ltd. is set for hearing before the High Court of the Republic of Singapore on October 31, 2003 at 10 o'clock in the morning. O2 Labs Pte Ltd, a creditor, whose address is situated at 123 Penang Road, #02/03-12 Regency House, Singapore 238465, filed the petition with the court on October 2, 2003. The petitioners' solicitors are Messrs Legalworks Law Corporation of 138 Robinson Road, #13-08/10 The Corporate Office, Singapore 068906. Any person who intends to appear on the hearing of the petition must serve on or send by post to Messrs Legalworks Law Corporation a notice in writing not later than twelve o'clock noon of the 30th day of October 2003 (the day before the day appointed for the hearing of the Petition). CIRCUITS PLUS: Issues Profit Warning ------------------------------------ The Board of Directors of Circuits Plus Holdings Ltd deem it appropriate to issue a profit warning in anticipation of the Company's announcement of the Group's results for the first half of the financial year ending 31 March 2004 (FY2004). The Group is expected to report a significant loss for the first half of FY2004 due to the following: 1) The Group had stated in the announcement of 5 June 2003 in Paragraph 10 of its full year financial statement and dividend announcement for the financial year ended 31 March 2003, that it "expects a more difficult year ahead". The absence of any significant improvements in business conditions has affected sales for the Group in the first half of FY2004. 2) The unfavorable business conditions and a change in the major shareholder of Shan Dong Ju Li Circuits Plus Electronic Technology Co., Ltd have resulted in a prolonged delay in the commencement of operations for Shan Dong Ju Li Circuits Plus Electronic Technology Co., Ltd. Accordingly, the Directors, as part of their periodic review of impairment, would provide for a write-down on the Group's cost of investment in the associated Company based on the latest available management accounts. 3) Provision for slow-moving stocks in respect of buffer stocks, which were produced to minimize and cover any adverse impact that could arise from the relocation of production for some of our key customers from our Singapore plant to Malaysia plant. The relocation was smooth but unfortunately, the key customers' orders slowed down due to adverse business conditions resulting in slow-moving stocks. Provision for slow-moving stocks will also be made for buffer stocks produced to minimize the risk of late deliveries to customers in preparation of our outsourcing of production of certain PCB orders to China as the outsourcing logistics and co-ordination had not yet reached a mature stage. In our recent review, we noted that the pre-Christmas season orders have not been forthcoming as projected. Therefore, the Directors have decided to make a provision on these stocks. 4) In view of the unfavorable business conditions, commercial production of research and development initiatives of the Group are likely to be delayed. Therefore, the Group will be making an accelerated amortization charge for its capitalized research and development expenditures as a matter of prudence. Details of the above will be provided when the Company announces its half-year results for FY2004 by the end of November 2003. CONTECH REALTY: Unveils October 8 EGM Resolutions ------------------------------------------------- At an Extraordinary General Meeting (EGM) of Contech Realty Pte Ltd (Members' Voluntary Winding Up) duly convened and held at 60 Admiralty Road West #03-01, Singapore 759947 on 8th October 2003 at 10.00 a.m., the following resolutions were duly passed: SPECIAL RESOLUTION (a) RESOLVED that the Company be wound up voluntarily pursuant to section 290 (1) (b) of The Companies Act (Chapter 50). ORDINARY RESOLUTIONS RESOLVED: (b) That Mr Kon Yin Tong, Mr Wong Kian Kok and Mr William Caven Hutchison of Foo Kon Tan Grant Thornton be and are hereby appointed liquidators, jointly and severally, for the purpose of the winding up. (c) That the liquidators be remunerated for the work of winding up the Company on their normal scale of professional fees. SPECIAL RESOLUTION (d) That the liquidators be empowered to exercise any of the powers given by sub-sections of (1) and (2) of section 272 of the Companies Act (Chapter 50) and to distribute to members in specie any part of the assets of the Company. LIM KAH HING Director. EMC VENTURES: Issues Debt Claim Notice to Creditors --------------------------------------------------- The creditors of EMC Ventures Pte Ltd (In Members' Voluntary Liquidation), which is being wound up voluntarily are required on or before the 17th day of November 2003 to send in their names and addresses and particulars of their debts or claims, and the names and addresses of their solicitors (if any) to the undersigned, the Liquidators of the said Company and, if so required by notice in writing by the said Liquidators 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. CHEE YOH CHUANG LEOW QUEK SHIONG Liquidators. 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423. ITALIAN FASHION: Creditors Must Submit Claims by November 17 ------------------------------------------------------------ Notice Is Hereby Given that the Creditors of Italian Fashion Fabrics Pte Ltd (In Members' Voluntary Winding-Up), which is being wound up voluntarily, are required on or before 17 November 2003 to send in their names and addresses and the particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to the undersigned, the Joint Liquidators of the said Company, and if so required by notice in writing from the said Joint Liquidators or 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. STEVEN TAN CHEE CHUAN AND DOUGLAS TAN KAY YEOW Joint Liquidators. 138 Cecil Street #15-00 Cecil Court Singapore 069538. KEN-AIR TOURS: Releases First & Final Dividend Notice ----------------------------------------------------- Ken-Air Tours Pte Ltd. issued a notice of first and final dividend as follows: Address of Registered Office: c/o 10 Collyer Quay #21-01 Ocean Building Singapore 049315. Court: High Court of Singapore. Number of Matter: 600037 of 2002. Amount percentum: 0.3 cents per Dollar. First and final or otherwise: First and final. When payable: 15th October 2003. Where payable: 10 Collyer Quay #23-05 Ocean Building Singapore 049315. OAKTECH INDUSTRIES: Issues Winding Up Order Notice -------------------------------------------------- Oaktech Industries (S) Pte Ltd issued a winding up order notice made on the 3rd day of October 2003. Name and Address of Liquidator: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118. Ref: CW217/03. Messrs PILLAI & PILLAI Solicitors for the Petitioners. SINGAPORE LEASING: Issues Dividend Notice ----------------------------------------- Singapore Leasing International (Pte) Ltd issued a notice of intended dividend as follows: Address of Registered Office: c/o 10 Collyer Quay #21-01 Ocean Building Singapore 049315. Court: High Court of Singapore. Number of Matter: 600004 of 2001. Last day of receiving proofs: 17th October 2003. Name of Liquidator: Ong Yew Huat. Address: 10 Collyer Quay #21-01 Ocean Building Singapore 049315. TAT HIN: Winding Up Hearing Set October 31 ------------------------------------------ The petition to wind up Tat Hin International Trading Pte Ltd. is set for hearing before the High Court of the Republic of Singapore on October 31, 2003 at 10 o'clock in the morning. Adani Exports Limited (India Company Registration No. 19067/1993), a creditor, whose address is situated at Adani House, Nr. Mithakhali Circle, Navrangpura, Ahmedabad 380009, India, filed the petition with the court on October 7, 2003. The petitioners' solicitors are Messrs Gurbani & Co of No. 9 Temasek Boulevard, #17-01 Suntec Tower 2, Singapore 038989. Any person who intends to appear on the hearing of the petition must serve on or send by post to Messrs Gurbani & Co a notice in writing not later than twelve o'clock noon of the 30th day of October 2003 (the day before the day appointed for the hearing of the Petition). =============== T H A I L A N D =============== CHRISTIANI & NIELSEN: Posts Update on Business Reorganization ------------------------------------------------------------- During the year 2001 Christiani & Nielsen, as Parent Company and guarantor of its subsidiaries, received demands by some of its creditors to repay the loans and guarantee obligations in the total amount of approximately THB1,429 million. Under the circumstance whereby the Company had a large amount of retained loss and capital deficit, the Company was not in a position to repay the obligations. On 31 May 2002, the Company applied for business reorganization to the Central Bankruptcy Court, and on 8 July 2002, the Court ordered the Company to undergo business reorganization in accordance with the Bankruptcy Act, under the reorganization plan of CN Advisory Co., Ltd. as the Planner. On 15 January 2003, CN Advisory Co., Ltd. as the Planner proposed the business reorganization plan to the lenders and creditors for approval. The meeting of the lenders and creditors was held on 18 February 2003 to approve the business reorganization plan. More than 92% of the lenders and creditors accepted the Plan. The Court set the date for considering the Plan on 3 March 2003, which was postponed to 11 April, 24 April and 2 May 2003 respectively. On 2 May 2003, the Court approved the Plan and appointed CN Advisory Co., Ltd. as the Plan Administrator. The basis of the Plan can be summarized as follows: Debt Restructuring The classification of the creditors is according to the right to claim and benefit as specified in conditions and regulations specified in Section 92/42 bis. of Bankruptcy Act. The creditors are classified into 12 groups consisting of 3 groups of Secured Creditors and 9 groups of Unsecured Creditors. Debt structure and payment plans are as follows: Group of Creditors Claimed Percentage Submitted of debt re- (Million payment Baht) Secured Creditor 169 100% Secured Creditor 10 100% Unsecured Creditor (Short-term Loan) 130 100% Unsecured Creditor (Debenture Creditors) 1,719 3% Unsecured Creditor (Debenture Creditor 75 25.9% by Court Order) Trade Creditors 130 96.98% Lending Creditors from related company 390 3% Guarantee Note Creditors for loan to 1,437 3% related company Group of Creditors Claimed Percentage Submitted of debt re- (Million payment Baht) Guarantee Note Creditors 3,156 3% Bangkok Metropolitan Administration 3,482 No effect Revenue Department 118 3% Other Creditors 129 3% Group Restructuring The Company will concentrate on construction business in Thailand only. The Company intends to sell the shares, projects or close the dormant subsidiaries or subsidiaries with operating loss. These subsidiaries include construction business and mechanical and electrical engineering business in Asia and Europe, Investment and Development business. Capital Restructuring - Transfer of the legal reserve for the premium and deficit of par value to compensate the Company's retained loss. - Decrease of unpaid capital from Baht 1,592,193,200 to Baht 1,411,835,200 by cancellation of 18,035,800 un-paid shares. - Decrease of paid-up capital to compensate the retained loss by reducing par value from Baht 10 per share to Baht 0.01 per share. - Capital increase by the sale of ordinary shares and/or warrants and/or convertible securities to existing shareholders and/or private placement and/or general public in the amount not exceeding Baht 500 million. During June 2003, the Company has transferred the ownership of land and buildings of the Company to settle the debt of 169 million Baht to the secured creditor in Group 1. This is in accordance with the Plan. On 30 July 2003, CN Advisory Co., Ltd. as the Plan Administrator submitted the request to the Court to proceed with the Business Reorganization Plan which was approved by the Court on 2 May 2003 as follows: 1. The request for the Court's order to decrease and increase capital as follows: 1.1 Decrease of unpaid capital of 18,035,800 shares resulting in the decrease of registered capital from Baht 1,592,193,200 to registered capital of Baht 1,411,835,200. 1.2 Decrease of paid-up capital to compensate the retained loss by reducing par value from Baht 10 per share to Baht 0.01 per share resulting in the decrease of paid up capital from Baht 1,411,835,200 to paid up capital of Baht 1,411,835.20. 1.3 Increase of registered capital of Baht 310,603,744.80 comprising 31,060,374,480 shares at par value of Baht 0.01 (1 Stang) from registered capital of Baht 1,411,835.20 to registered capital of Baht 312,015,580. The 31,060,374,400 new ordinary shares will be allotted to the existing shareholders in the ratio of 1 old share to 220 new shares. In the event that there are unsubscribed shares remaining after the subscription by the existing shareholders, the Plan Administrator may offer the remaining unsubscribed shares to existing shareholders; Crown Property Bureau and/or Siam Commercial Bank PCL and/or CPB Equity Co., Ltd. (additional reported on 25 August 2003). The addition of 80 new ordinary shares will be allotted to private placement. 1.4 After the allotment of shares in 1.3 above, the registration of the par value of the shares shall be made from par value of Baht 0.01 per share (1 Stang) to par value of Baht 1.0 per share. This will result in a reduction of the number of shares to 312,015,580 shares. 2. Report the Group Restructure to the Court that the Plan Administrator will proceed to sell the shares in 9 subsidiaries and other companies together with the closing down of 2 subsidiaries which are dormant or having an operating loss. On 5 August 2003, the Court ordered the Plan Administrator to proceed with the capital decrease and increase as requested. During 11-12 September 2003, the Company has transferred its ownership in land and buildings amounting to 17.7 million Baht to partially repay the debt to Creditor Group 5. This is in accordance with the Plan approved by the Court. In September 2003, the Company has sold its shares in subsidiaries and other companies which are dormant or having an operating loss as follows: 1. Sale of shares in On Shing, a subsidiary company, to Intertec Holdings Limited; 2. Sale of shares in Christiani & Nielsen Construction Asia Limited, a subsidiary company, to Intertec Holdings Limited; 3. Sale of shares in Christiani & Nielsen A/S, a subsidiary company, to Intertec Holdings Limited; 4. Sale of shares in Christiani & Nielsen Limited, a subsidiary company, to Intertec Holdings Limited; 5. Sale of shares in Intertec Holdings Limited to a private entity which has no relationship with the Company; 6. Sale of shares in Siam Chaisri Co., Ltd. to United Securities Public Company Limited; 7. Sale of 4,791,297 shares of Christiani & Nielsen (Thai) Public Company Limited held by Indochina Investments Limited to a private entity which has no relationship with the Company. During 16-19, 22 and 26 September 2003, the Company has proceeded with the capital increase to increase the registered capital from Baht 1,411,835.20 to the registered capital of Baht 312,015,580. The registration has been made with the Registrar on 30 September 2003. KRUNG THAI: Third Quarter Net Profit Reaches THB4.41 Billion ------------------------------------------------------------ Krung Thai Bank PCL's net profit jumped 65% in the third quarter after a revaluation of its assets, Dow Jones said. From only THB2.88 billion last year, net profit improved to THB4.41 billion this year. According to Dow Jones, the bank wrote back THB1.32 billion after an asset revaluation by independent appraisers. There were no such item in the year-earlier report, the paper said. MILLENNIUM STEEL: First-half Net Debt Down to THB644 Million ------------------------------------------------------------ To: Managing Director, The Stock Exchange of Thailand Re: Report on Progress of the Business Reorganization Process In accordance with SET regulations, requiring listed companies undergoing business reorganization to provide an update every 6 months, Millennium Steel Public Company Limited reports thus: (1) Progress of NTS Business Reorganization Plan Process N.T.S. Steel Group Public Company Limited (NTS), a subsidiary, has already completed, according to the business reorganization plan, its re-capitalization consisting of a debt-to-equity conversion, transfer of non-core assets to pay debt and merger with the steel companies in the Siam Cement Group. The Bankruptcy Court has ordered to terminate the NTS Business Reorganization since February 28, 2003. (2) Offering Securities to the Existing NTS Securities Holders MS have offered the securities for the 2nd time to the existing NTS securities holders who have not exchanged their NTS securities to MS securities, during August 18, 2003 to October 10, 2003. (3) Financial Status In the first half of the year 2003, MS had net cash inflow of THB551 million, allowing it to pay down current liabilities. This reduced total debt to THB644 million. The company will pay the short term loan amounting to THB996 million and the long term loan of THB9,553 million with the additional deferred interest in the amount of THB232 million, at the interest rate of 1% as loan agreement conditions in 2008 and 2010, respectively. 4. Operating Results The NTS had first half sales of THB4,194 million and net loss of THB81 million, up from THB508 million- net sales and THB117 million- net loss in the second half of 2002. 5. Other 5.1 NTS have started to install new machinery to improve the efficiency of the Bag House System at Bowin plant, Chonburi Province. This project is expected to start to run around second half of the year 2004. 5.2 MS have installed the new machinery to produce the Wire Rods with high value added at the Siam Iron and Steel (2001) Company Limited, Ta-Luang plant, Saraburi Province. This project is expected to finish and start to test run in October 2003. Please be informed accordingly. Sincerely Yours, Mr. Santi Charnkolrawee President, Millennium Steel Public Company Limited RATTANA REAL: Hires Ernst & Young as Auditor -------------------------------------------- Re: Restructuring progress report To: Director and Manager, The Stock Exchange of Thailand Rattana Real Estate Public Company Limited wishes to provide this progress report on its restructuring efforts: (1) The company has asked Ernst & Young Office Limited to become its auditor for the fiscal year 2002. It also asked the firm to adjust its loan from financial institutions. (2) In 2004, the Company expects to pay all its loans and forecasts an increased sale. Please be informed accordingly, Sincerely yours, Mr. Vitavas Vibhagool Managing Director SUN TECH: Posts Update on Restructuring Plan -------------------------------------------- Re: Rehab Plan Update and Financial Report for Six months to June 2003 To: President, The Stock Exchange of Thailand Sun Tech Group Public Company Limited has been forbidden from trading by the Stock Exchange of Thailand because it is currently under rehabilitation. As a result, the company has not been submitting quarterly financial results. However, the company is required to submit its financial report for the six months ended June 30, 2003: (1) Implementation of the business reorganization plan. Pursuant to the company's rehabilitation petition filed with the Central Bankruptcy Court (The Court), Srisongkram Planner Company Limited has been appointed the company's debt- restructuring planner. As of April 9, 2001, creditors have resolved to approve the business reorganization plan of the company and on May 3, 2001 the court approved the plan and appointed Srisongkram planner Company Limited as Plan Administrator. The company cannot follow the plan right as it has yet to comply with the requirements that will enable the company to withdraw working capital of THB100 million. Since March 29, 2002, the company has set a series of Steering Committee meetings to address this item. After the first meeting, the Plan Administrator extended the implementation of the plan in case of precondition from March 31, 2002 to June 30, 2002, which the Steering Committee approved. But on December 20, 2002, the Plan Administrator extended anew the implementation of the plan from June 30, 2003 to December 31, 2003, which was again approved by Steering Committee. So far, the Company has repaid seven creditors group (Unsecured Creditors/Trade Creditors) in the amount of THB19,700.00. Total debts repaid now amount to THB23,986,006.43. (2) Results as of June 30, 2003 Shareholders equity is -THB6,381.90 million while net loss for the period June 30, 2002-03 is THB874.69 million, which translates to THB5.30 per share. The company blames this on the 44.4% drop in agricultural revenues. (3) List of related parties and conflict List of related parties: (Baht: Thousand) Revenue from ground rental - Sun Tech Scrap Processing Company Limited 2,400 Revenue from leasing rental - Sun Tech Scrap Processing Company Limited 3,850 Others revenue - Sun Tech Scrap Processing Company Limited 262 Interest expense - Sun Tech Scrap Processing company Limited 0 - S.T.G. international Trading company Limited 581 - Kinko Business Center (Thailand) company Limited 0 - Sriracha Harbor public Company Limited 0 Others Expense - S.T.G. international Trading company Limited 395 Short -Term loans and advance (no interest) - Sun Tech Scrap Processing Company Limited 15,865 - Kinko Business Center(Thailand) company Limited 150 - Metal Star company Limited 429 Short - Term loans - S.T.G. international Trading company Limited 5,190 rate 10% - Kinko Business Center(Thailand) Company Limited 400 rate 11.5% - Sriracha Harbor public Company Limited 6,358 rate 9% List of related parties in normal business operation: Type of related parties - Sun Tech Scrap Processing Company Limited is a subsidiary company of Sun Tech Group Public Company Limited. - S.T.G. International Trading Company Limited is a subsidiary company of Sun Tech Group Public Company Limited. - Kinko Business Center (Thailand) Company Limited is a subsidiary company of Sun Tech Group Public Company Limited. - Sriracha Harbor Public Company Limited is connected to Sun Tech Group Public Company Limited. - Metal Star Company Limited is connected to Sun Tech Group Public Company Limited. Pleased be informed accordingly, Dr. Chaiyaphon Horrungruang President TONGKAH HARBOUR: Posts Latest Update on Business Rehabilitation --------------------------------------------------------------- Re: Report on progress of restructuring To: Director General, The Stock Exchange of Thailand Dear Sir, According to SET rules, which requires companies under rehabilitation to report the progress of its performance every 6 month as of 31 March and 30 September of each year, the Company, therefore, would like to report the financial and operational performances as of 30 September 2003 as follows: (1) Operation of Andesite, Gold and Tin Mining 1.1 Andesite Quarry Andesite performance during the first 6 months ended June 2003 is as follows: Unit : million Baht Year 2002 2003 Sales 21.59 5.85 % increase/decrease - (72.90%) Production cost 15.45 9.80 % increase/decrease - (36.57%) Gross Margin 28.44% (67.52%) Andesite sales during the first 6 months of 2003 decreased 72.90% in compare to the same period last year. This is due to the decrease of the ballast sales and the rescheduling of ballast delivery by the State Railway of Thailand, which also command a higher selling price as compared to other by products. Cost of sales also decreased 36.57% in compare to the same period last year. However, the decrease in production cost was not in proportion to sales revenue because the main products sales for the period were aggregates, road base and coarse dust instead of ballast which have the same average cost. 1.2 Gold mining (Tungkum Limited (TKL)) TKL has already received all six (6) mining licenses. Currently, the Company is in the process of constructing infrastructure and gold ore processing plant which will be completed in 2004. 1.3 Tin Mining Currently, the Company uses contractors, operating their own dredges, to conduct its offshore mining operations, but under the technical supervision of THL's staff and consultants. In years 2000 and 2001, THL received a fixed income of Baht 575,000 per month plus a share of the tantalum (a byproduct in tin smelting). Starting 2002, THL's income from tin and tantalum is based on production and price levels at the international metals market. During the first 6 months of 2003, THL's net income from tin and tantalum was Baht 0.32 million, a decrease of 80.61% from Baht 1.65 million of the same period in 2002. This was attributable to the decline in sales volume due to the less number of dredges and operating days of the dredge in the period. (2) Property development Pursuant to the Company's plan to develop its land on Ratchadapisek Road, the Company has now finalized that the said land will be developed to be a Condominium (28 Floors). Currently, the Company is in negotiation on a joint-venture with a property development company. The project, (with substructure work in progress), is expected to be launched next month, November 2003. (3) The Company's debt restructuring In Debt Restructuring, THL has completed restructuring by converting its short term liabilities into long term liabilities since July 2001. The Company has started to repay the principal and outstanding interest according to the restructuring agreements since March 2003. (You may view the debt balance as of the end of September 2003 through this link http://bankrupt.com/misc/tongkah_harbour.htm) Thus, as of June 2003, the Company has a net loss of THB21.72 million THB0.05 per share. The Company, therefore, reports the progress in the Company's financial and operational performances in accordance with its Rehabilitation Plan (or Operational Plan) as of September 2003 for your consideration. Sincerely yours, Ronald Ng Wai Choi Managing Director * BOND PRICING: For the week of October 13 - October 17, 2003 ------------------------------------------------------------- Issuer Coupon Maturity Price ------ ------ -------- ----- AUSTRALIA --------- Advantage Group Ltd 10.000% 4/15/06 1 Amcor Ltd 6.500% 10/29/49 12 Amcom Telecommunications Ltd 10.000% 10/28/07 2 APN News & Media Ltd 7.250% 10/31/08 4 Australia Commonwealth Gov't Loans 3.000% 7/29/49 63 Austrim National Radiators Ltd 9.500% 10/31/04 45 Bendigo Bank Ltd 8.000% 5/29/49 9 BIL Finance Ltd 8.000% 10/15/07 11 BIL Finance Ltd 8.250% 10/15/03 10 BIL Finance Ltd 8.750% 10/15/04 10 BIL Finance Ltd 8.750% 10/15/04 11 BIL Finance Ltd 9.000% 10/15/05 10 BIL Finance Ltd 9.250% 10/15/04 11 BIL Finance Ltd 10.000% 10/15/03 10 Capital Properties NZ Ltd 8.500% 4/15/05 8 Capital Properties NZ Ltd 8.500% 4/15/07 8 Capital Properties NZ Ltd 8.500% 4/15/09 9 Consolidated Minerals Ltd 11.250% 3/31/05 1 Djerriwarrh Investments Ltd 7.500% 9/30/04 4 Evans & Tate Ltd 8.250% 10/29/07 1 Fletcher Building Ltd 7.900% 10/31/06 8 Fletcher Building Ltd 8.300% 10/31/06 8 Fletcher Building Ltd 8.500% 4/15/04 7 Fletcher Building Ltd 8.600% 3/15/08 8 Fletcher Building Ltd 8.750% 3/15/06 8 Fletcher Building Ltd 8.850% 3/15/10 8 Fletcher Building Ltd 10.500% 4/30/05 7 Fletcher Building Ltd 10.800% 11/30/03 7 Feltex Carpets Ltd 10.250% 9/15/08 1 Fernz Corp Ltd 8.560% 10/15/06 8 Futuris Corporation Ltd 7.000% 12/31/07 2 Garrats Ltd 12.000% 12/31/03 1 Gympie Gold Ltd 8.500% 9/30/07 1 Hy-Fi Securities Ltd 7.000% 8/15/08 7 Hutchison Telecoms Australia 5.500% 7/12/07 1 JB Were Capital Markets Ltd 8.750% 12/31/03 31 Macquarie Bank Ltd 1.800% 8/15/15 63 NPT Capital Ltd 9.500% 11/30/04 9 Nuplex Industries Ltd 9.300% 9/15/07 8 Pacific Retail Finance 9.250% 9/15/07 10 Port Douglas Reef Resorts Ltd 9.000% 4/1/04 1 Powerco Ltd 8.150% 9/1/07 7 Powerco Ltd 8.400% 5/22/07 7 Queensland Treasury Corporation 0.500% 5/19/10 71 Richmond Ltd 10.750% 12/15/04 10 Salomon Smith Barney Australia 4.250% 2/1/09 9 Sky Network Television Ltd 9.300% 10/29/49 8 Straits Resources Ltd 10.000% 12/31/03 1 Strathfield Group Ltd 11.000% 12/31/05 1 Tower Finance Ltd 8.750% 10/15/07 9 TrustPower Ltd 8.300% 9/15/07 8 TrustPower Ltd 8.500% 9/15/12 8 CHINA & HONG KONG ----------------- China Petrochemical Corp 1.000% 5/8/08 44 Teco Electric & Machinery Co Ltd 2.750% 4/15/04 73 KOREA ----- Korea Electric Power Corporation 7.950 4/1/96 62 Kolon Industries Inc 0.250% 12/31/04 52 MALAYSIA -------- Asian Pac Holdings Bhd 4.000% 12/22/05 1 Asian Pac Holdings Bhd 4.000% 12/22/05 1 Artwright Holdings Bhd 5.500% 3/05/07 1 Arus Murni Corporation Bhd 0.500% 8/24/06 1 Berjaya Group Bhd 5.000% 10/17/09 1 Berjaya Land Bhd 5.000% 12/30/09 1 Berjaya Sports Toto Bhd 8.000% 8/04/12 4 Camerlin Group Bhd 5.500% 7/15/07 1 Crescendo Corporation Bhd 3.000% 8/25/07 1 Crest Builder Holdings Bhd 1.000% 2/25/08 1 Crest Builder Holdings Bhd 3.000% 2/25/06 1 Dataprep Holdings Bhd 4.000% 8/5/05 1 Dataprep Holdings Bhd 4.000% 8/6/07 2 Eden Enterprises (M) Bhd 2.500% 12/2/07 1 Eox Group Bhd 4.000% 1/10/06 1 Europlus Bhd 7.000% 4/19/06 1 Furqan Business Organisation Bhd 2.000% 12/19/05 45 Gadang Holdings Bhd 3.000% 10/21/07 3 Grand Central Enterprises Bhd 5.000% 2/17/05 1 Gula Perak Bhd 6.000% 4/23/08 1 Hong Leong Industries Bhd 4.000% 6/28/07 1 Halim Mazmin Bhd 8.000% 6/30/04 3 I-Bhd 5.000% 4/30/07 1 Insas Bhd 8.000% 4/19/09 1 Integrax Bhd 3.000% 12/24/05 1 Kumpulan Emas Bhd 7.000% 11/15/04 1 Kumpulan Jetson 5.000% 11/28/12 1 LBS Bina Group Bhd 4.000% 12/31/06 1 LBS Bina Group Bhd 4.000% 12/31/07 1 Larut Consolidated Bhd 7.000% 7/19/05 1 Mutiara Goodyear Development Bhd 2.500% 1/15/07 1 MWE Holdings 5.500% 10/7/04 1 NAM Fatt Corporation Bhd 2.000% 6/24/11 1 OSK Holdings Bhd 3.500% 3/1/05 1 OSK Holdings Bhd 6.000% 3/1/05 1 Pantai Holdings Bhd 5.000% 3/28/07 1 Patimas Computer Bhd 6.000% 2/19/06 1 Puncak Niaga Holdings Bhd 2.500% 11/20/16 1 POS Malaysia & Services Holdings Bhd 8.000% 11/26/04 1 Orlando Holdings Bhd 3.000% 3/16/05 1 Rashid Hussain Bhd 0.500% 12/23/12 1 Rashid Hussain Bhd 3.000% 12/23/12 1 Southern Steel Bhd 5.500% 7/31/08 2 Tanah Emas Corporation Bhd 2.000% 12/9/06 1 Tap Resources Bhd 2.000% 6/29/06 1 Time Engineering Bhd 2.000% 12/25/05 1 Wah Seong Corporation Bhd 3.000% 5/21/12 4 PHILIPPINES ----------- Bacnotan Consolidated Industries, Inc. 5.500% 6/21/04 42 SINGAPORE --------- CSC Holdings Ltd 6.500% 4/27/05 1 Tampines Assets Ltd 5.625% 12/7/06 1 Tincel Ltd 5.000% 6/13/11 1 Tincel Ltd 7.400% 6/13/11 1 Rabobank Singapore 1.000% 1/15/13 68 THAILAND -------- Asia Credit PCL 3.750% 11/17/03 54 Bangkok Bank PCL 4.589% 3/3/04 64 Bangkok Land PCL 4.500% 10/13/03 9 Bank of Asia PCL 3.750% 2/9/04 64 Kiatnakin Finance and Securities PCL 4.000% 11/30/03 58 MDX PCL 4.750% 9/17/03 8 Property Perfect PCL 3.250% 3/28/49 8 Siam Commercial Bank PCL 3.250% 1/24/04 64 Tuesday's edition of the TCR-Asia Pacific delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Saturday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. ********* 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., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland 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 ***