/raid1/www/Hosts/bankrupt/TCRAP_Public/031024.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, October 24, 2003, Vol. 6, No. 211
Headlines
A U S T R A L I A
QANTAS AIRWAYS: New Zealand Anti-trust Watchdog Ends Alliance
SONS OF GWALIA: UBS Suspects Real Motive Behind Share Placement
C H I N A & H O N G K O N G
CHEER SMART: Court Sets Winding up Hearing November 12
FIRST KARAOKE: Silvercord Limited Files Winding up Petition
GLORY WIN: Court to Hear Winding up Petition Next Week
FIRST SUCCESS: Winding up Hearing Set November 5
TOP CREATIVE: Wind up Sought Before Hong Kong High Court
I N D O N E S I A
ASIA PULP: U.S. Ruling Could Torpedo Debt Restructuring Plan
KALBE FARMA: Projects IDR3 Trillion in Sales this Year
J A P A N
DAIEI INC.: Retailer to Hold Special Sale
FURUKAWA ELECTRIC: Enters Alliance With Valeo
MARUBENI CORPORATION: Expects 1H03 Y19.5B Net Profit
SUMITOMO METAL: JCR Assigns BBB+ Rating
* R&I Ratings for 1H03: 8 Upgrades, 29 Downgrades
K O R E A
DAEWOO MOTOR: Indian Firm Buys Commercial Vehicle Unit
HYNIX SEMICONDUCTOR: Unveils Q303 Financial Results
SK NETWORKS: Auditor Young Wha Faces W90B Lawsuit
M A L A Y S I A
BERJAYA SPORTS: Unveils October 22 EGM Resolutions
GEAHIN ENGINEERING: MGSB, MKK OKs Debt Restructuring Exercise
MECHMAR CORPORATION: Delists Dormant Unit in RCBS
NEPLINE BERHAD: Withdraws Winding Up Petition
PARIT PERAK: LHCB Disposes of Equity Interest
TONGKAH HOLDINGS: Warrant Holders OK Proposal
UNITED CHEMICAL: Submits Revised Restructuring Proposal to SC
P H I L I P P I N E S
BACNOTAN STEEL: Court Appoints Receiver For Rehabilitation
MANILA ELECTRIC: Sees Php3.12B Annual Sales Revenue
MANILA ELECTRIC: ERC May Allow Debt Notes Issue
MANILA ELECTRIC: Projects Php1.0B 2003 Net Profit
MAYNILAD WATER: Lenders Invoke Guarantee on US$80M Loan
PHILIPPINE LONG: Businesses May Require Ample Capital Investment
PHILIPPINE LONG: Unveils Consolidated US$3.6B Total Indebtedness
URBAN BANK: Supreme Court Dismisses Criminal Case Vs. BSP
S I N G A P O R E
BOON FONG: Releases Winding Up Order Notice
CHARTERED SEMICONDUCTOR: Releases 3Q03 Financial Results
CHARTERED SEMICONDUCTOR: Discloses Wafer Shipments in 3Q03
CHARTERED SEMICONDUCTOR: Unveils Business Statistics Tables
CORONATION SHIPPING: Issues Debt Claim Notice to Creditors
DBS GROUP: Units Enter Liquidation
DBS SECURITIES: Creditors Must Submit Claims by November 19
FLEXTRONICS INTERNATIONAL: Discloses 2Q03 Financial Results
OCEAN CAPITAL: Winding Up of Subsidiaries
OZIBOU.COM PTE: Issues Dividend Notice
ST ASSEMBLY: Sees Net Profit in Third Quarter
ST ASSEMBLY: Unveils Third Quarter 2003 Conference Call
VICPLAS INTERNATIONAL: Widens 2003 Net Loss to S$3.62M
T H A I L A N D
BANGKOK LAND: Embarks on Major Housing Project
KRUNG THAI: Buys 11 Million Siam Steel Preferred Shares
PAE (THAILAND): Corrects Latest Update on Rehabilitation Plan
* Large Companies with Insolvent Balance Sheets
- - - - - - - -
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A U S T R A L I A
=================
QANTAS AIRWAYS: New Zealand Anti-trust Watchdog Ends Alliance
-------------------------------------------------------------
New Zealand's competition regulator affirmed yesterday its
decision six months ago to reject the proposed alliance of Air
New Zealand and Qantas Airways, citing its adverse effects to
rivals and consumers, the Associated Press said.
In a ruling Thursday, the Commerce Commission said the proposal
"would damage competition and harm consumers and is therefore
not in the interests of New Zealanders."
Under the proposal, the Qantas Airways will buy 22.5 percent of
Air New Zealand for 550 million New Zealand dollars ($330
million). Air New Zealand had warned it could collapse within
six years if the proposal is rejected as it would be poorly
positioned in "a struggle for survival" against Qantas, which is
the much larger airline.
In a statement, Air New Zealand CEO Ralph Norris said he was
"extremely disappointed" the company's evidence to the
regulators "had counted for little."
Qantas CEO Geoff Dixon said the airline "still believe(s) an
alliance between Qantas and Air New Zealand is in the best
interests of aviation in this region and would deliver
significant benefits to travelers and tourism."
The two competition watchdogs had taken a very narrow view of
competition and consumer interests and their decisions "are at
odds with what is occurring around the world," he said.
In September Australia's Competition and Consumer Commission
ruled against the plan, saying it would stifle competition,
raise prices and cut services. This decision is on appeal. Air
New Zealand, according to the Associated Press, may still appeal
the latest rejection to the High Court.
Air New Zealand reported a small net profit of $94 million in
August, its first annual profit in four years. It has projected
a similar profit for the current year, the report said.
SONS OF GWALIA: UBS Suspects Real Motive Behind Share Placement
---------------------------------------------------------------
UBS cautioned investors against believing that the turnaround of
Sons of Gwalia is assured after it placed 19 million shares on
the market last week at AU$3.35p each.
Citing UBS' "rare note of caution," Sydney Morning Herald said
the broker noted Peter Lalor's departure from his pronouncements
last year that a placement was not necessary. At the time,
Gwalia executive chairman also said the group's debt was still
"relatively modest." UBS expects the company to writedown
assets by $165 million, adding that a cash flow problem may be
on the cards, as well.
"We have expressed reservations regarding the [$330.7 million]
carrying value of exploration properties," UBS noted. It said a
write-down of half the properties would send Gwalia's net debt
to equity ratio, or gearing, from 44 percent to 59 percent.
UBS said the placement would prove earnings per share dilutive
in 2005 and 2006, a concern also echoed by Credit Suisse First
Boston, Sydney Morning Herald said.
In June, the company announced a strategic review, which
included AU$10 million in cost savings for 2003-04 and the loss
of 100 jobs from the gold division and Perth head office.
============================
C H I N A & H O N G K O N G
============================
CHEER SMART: Court Sets Winding up Hearing November 12
------------------------------------------------------
The High Court of Hong Kong will hear on November 12, 2003 at
9:30 a.m. the petition seeking the winding up of Cheer Smart
Engineering Limited.
Wong Lai Han of Room 1614, Kam Ping House, Long Ping Estate,
Yuen Long, New Territories, Hong Kong filed the petition on
September 17, 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.
FIRST KARAOKE: Silvercord Limited Files Winding up Petition
-----------------------------------------------------------
The High Court of Hong Kong will hear on October 29, 2003 at
10:00 a.m. the petition seeking the winding up of First Karaoke
(H.K.) Limited.
Silvercord Limited of 26th Floor, MassMutual Tower, 38
Gloucester Road, Wanchai, Hong Kong filed the petition on
September 4, 2003. Sit Fung Kwong & Shum represents the
petitioner.
Creditors and other interested parties are encouraged to attend
the hearing. They only need to notify in writing Sit Fung Kwong
& Shum, which holds office at Suite 4428, COSCO Tower, Grand
Millennium Plaza 183 Queen's Road Central Hong Kong.
GLORY WIN: Court to Hear Winding up Petition 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 Glory Win
Holdings Limited.
Lau Suet Mei of No. 11, Kam Tsin Wai, Kam Tin, Yuen Long, New
Territories, Hong Kong filed the petition on September 8, 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.
FIRST SUCCESS: Winding up Hearing Set November 5
------------------------------------------------
The High Court of Hong Kong will hear on November 5, 2003 at
10:00 a.m. the petition seeking the winding up of First Success
International Limited.
Cheung Lap Yeung Billy of Room 1932, Mei Yeung House, Mei Lam
Estate, Shatin, New Territories, Hong Kong filed the petition on
September 15, 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 34th Floor, Hopewell Centre, 183
Queen's Road East, Wanchai Hong Kong.
TOP CREATIVE: Wind up Sought Before Hong Kong High Court
--------------------------------------------------------
The High Court of Hong Kong will hear on November 19, 2003 at
9:30 a.m. the petition seeking the winding up Top Creative
Enterprises Limited.
Choi Kie Chung of 2nd Floor, Flat H, Yan Dack Building, 103 Chun
Yeung Street, North Point, Hong Kong filed the petition on
September 22, 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.
=================
I N D O N E S I A
=================
ASIA PULP: U.S. Ruling Could Torpedo Debt Restructuring Plan
------------------------------------------------------------
The debt restructuring of Asia Pulp & Paper might be delayed
anew after a New York court upheld the claims of GE Capital
Corp., Oaktree Capital Management LLC, and Gramercy Advisors
against the company.
According to Dow Jones, the ruling by the New York State Supreme
Court could pave the way for legal efforts in Indonesia to
foreclose some of APP's assets to secure the debts owed to the
three creditors or seize payments APP might make to other
creditors. The three are owed US$250 million in principal and
unpaid interest on promissory notes issued by PT Indah Kiat Pulp
& Paper and PT Lontar Papyrus Pulp & Paper, and guaranteed by
APP.
The company, originally scheduled to bare the final terms of the
debt-workout plan Friday, now expects to conclude negotiations
later this month. But Dow Jones said this might be delayed
further following the U.S. ruling. So far, creditors
participating in the negotiations have agreed to extend up to 22
years the repayment of a third of APP's US$6.7 billion debt.
They have yet to agree on what to do with the two-thirds, Dow
Jones said.
One of the sticking points in the negotiations is the debt-
equity swap announced last month, which will effectively
separate the company's China operations from the rest of the
group. Dow Jones says some creditors oppose this plan because
it will deprive the Singapore holding company of revenue from
the China operations and leave it powerless to repay its own
debts, while also shielding the China assets from claims by
creditors to other parts of the group.
Meanwhile, an unnamed source working on APP's debt-workout plan
believes the U.S. ruling would have little bearing on current
negotiations. He told Dow Jones: "They [referring to the three
U.S. fund managers] have to figure out how they can come here to
claim plans and machinery."
Accordingly, foreign rulings have little influence on Indonesian
courts, which have consistently refused to issue foreclosure
orders on powerful domestic companies. In fact, Dow Jones says,
this is one of the reasons foreign export-credit agencies are
seeking a negotiated settlement of their APP claims.
APP and its units defaulted on US$13.9 billion- debts in March
2001. Its creditors include export-credit agencies from 11
countries -- including the U.S., Japan and several European
nations -- and the Indonesian government, the largest creditor.
KALBE FARMA: Projects IDR3 Trillion in Sales this Year
------------------------------------------------------
Debt-laden Indonesian pharmaceutical company, PT Kalbe Farma,
forecasts IDR3 trillion in sales this year on expectations that
sales volume will increase 15%. Company director, Vijongtius,
told Asia Pulse Tuesday the volume increase is expected because
of minimal price changes this year.
In March, the company asked creditors to rollover about US$85
million in outstanding debts. In June last year, the company
also asked creditors to extend repayments from 2005 to 2010,
with a grace period until 2007.
=========
J A P A N
=========
DAIEI INC.: Retailer to Hold Special Sale
-----------------------------------------
Ailing retailer Daiei Inc. will hold an eight-day special sale
after the Japan Series baseball championship, Kyodo News said on
Thursday. The sale, beginning the day after the end of the best-
of-seven Japan Series, will be held at 265 outlets under its
direct management as well as Daiei group stores across the
nation.
The Japan Series, which began on October 18, is being fought
between the Pacific League champion Daiei Hawks, currently owned
by the retailer, and the Hanshin Tigers, which won their first
Central League pennant in 18 years.
FURUKAWA ELECTRIC: Enters Alliance With Valeo
---------------------------------------------
Furukawa Electric Co. will negotiate with French auto parts
maker Valeo about a business tie-up on wire harnesses for
automobiles, according to Kyodo News. The business collaboration
aims to allow major Japanese electric wire and cable maker to
better deal with its Japanese customers in Europe and Valeo to
do so with its European customers in Asia.
In August, Standard & Poor's Ratings Services has lowered its
corporate credit rating on Furukawa Electric Co. Ltd. to 'BBpi'
from 'BB+pi', reflecting the Company's deteriorating capital
structure owing to devaluation losses stemming from its optical
fiber solutions (OFS) unit. The downgrade also reflects the
difficulties the Company faces in recovering profitability and
cash flow in a stagnant communications market.
On August 11, 2003, Furukawa Electric announced it would incur
an extraordinary loss of 85.9 billion yen in fiscal 2003 on a
consolidated basis to cover devaluations in fixed assets at its
OFS unit, acquired from Lucent Technologies Inc. in 2001, and
costs for restructuring the segment. It also forecasted
consolidated net losses of 72.9 billion yen.
MARUBENI CORPORATION: Expects 1H03 Y19.5B Net Profit
----------------------------------------------------
Trading house Marubeni Corporation expects a group net profit of
19.5 billion yen in the first half of this year, against the 15
billion yen it projected in May, Kyodo News reports.
Marubeni's earnings power improved due to cut in expenses as
well as withdrawal from unprofitable businesses, according to
Japan Credit Rating Agency. On the other hand, its interest-
bearing debt and total assets were reduced. However, Marubeni
still carries large amount of securities and real estate against
the amount of shareholders' equity. Reductions in the risk
assets are important issue for Marubeni. It aims to increase the
earnings and to improve the financial structure by allocating
the resources to core business areas.
SUMITOMO METAL: JCR Assigns BBB+ Rating
---------------------------------------
Japan Credit Rating Agency (JCR) has assigned a BBB+ rating to
the bonds of Sumitomo Metal Industries, Limited.
Issue / Amount (bn) / Issue Date / Due Date / Coupon
bonds no.44 / Y10 / Nov. 5, 2003 / Nov. 5, 2008 / 1.58 percent
RATIONALE:
JCR announced the upgrade of the rating for Sumitomo Metal
Industries on October 2, 2003. Since then there have been no
significant changes affecting the rating. The proceeds from
sales of the bonds will be used for retirement of the bonds
outstanding. There have been no changes in the policy of cutback
in the interest-bearing debt.
* R&I Ratings for 1H03: 8 Upgrades, 29 Downgrades
-------------------------------------------------
Rating & Investment Information Co., Ltd. (R&I) has finalized
adjustments in Long-term Senior Credit Ratings for the first
half of the 2003 financial year (from April 1, 2003 to September
30, 2003) for the companies that it rates (623 companies as of
the end of September, excluding public enterprises, public
corporations and educational institutions). Again the number of
companies that have been adjusted downwards exceeds the number
of t hose adjusted upwards.
Eight companies were upgraded for the first half of 2003,
compared with six upgrades for the first half of the 2002
financial year and three for the latter half of 2002. At the
same time, 29 companies were downgraded for the first half of
the current financial year, showing a decreasing trend in
comparison to the second half of the 2001 financial year when
downward adjustments for companies peaked at 80. This may be an
indication that the creditworthiness of companies is beginning
to stabilize, supported by the effects of restructuring and
other positive measures.
Nevertheless, while there are some visible indications of
recovery at present, the business environment for companies
remains severe and the Japanese economy is showing little
promise of relief from its protracted deflation. Therefore, it
will take some time before the creditworthiness of Japanese
companies shows general improvement.
ADJUSTED RATINGS DURING 2003 FIRST HALF
UPGRADED 2001 2002 2003
First Second TOTAL First Second TOTAL First
Half Half Half Half Half
Manufacturing Sector 5 0 5 3 1 4 4
Non-manufacturing 6 0 6 1 2 3 2
Financial Sector 1 1 2 2 0 2 2
Insurance CPA 2 0 2 0 0 0 0
Total 14 1 15 6 3 9 8
DOWNGRADED 2001 2002 2003
First Second TOTAL First Second TOTAL First
Half Half Half Half Half
Manufacturing Sector 16 39 54 32 19 48 15
Non-manufacturing 13 19 31 29 8 37 10
Financial Sector 11 17 27 6 7 13 3
Insurance CPA 4 5 8 5 0 5 1
Total 44 80 120 72 34 103 29
Note 1: Totals based on Senior Long-term Credit Ratings *
Note 2: For totals on a financial year basis, multiple
adjustments of a Company's rating during the financial year are
calculated as a single Company for the purposes of this table.
For totals on a financial half-year basis, multiple adjustments
of a Company's rating during the half year period are calculated
as a single Company for the purposes of this table.
Note 3: Excludes public enterprises, public corporations and
incorporated schools
Note 4: In the case of a merger, the rating of the surviving
Company is used.
Note 5: Insurance CPA ratings include 'op' ratings.
Note 6: Includes ratings of holding companies.
*) An R&I Senior Long-term Credit Rating is an opinion regarding
an issuer's overall capacity to pay its entire financial
obligations, without taking into account the degree of recovery
of specific obligations. A Senior Long-term Credit Rating will
be assigned to all issuers. Ratings for individual issues may
differ from the Senior Long-term Credit Rating depending on the
terms and conditions of the issue.
Noticeable among the upward adjustments were rating upgrades for
companies recognized for improvement in conditions as a result
of their own efforts. Nissan Motor made further progress in
substantially reducing its interest bearing debt by improving
its ability to create a better cash flow.
Upgraded for two years running, Nissan has gone from BBB+ to A-.
KDDI has also made steady improvement in earnings and financial
results due to a head start in third generation cellular phones
and has managed to return to the A zone. Likewise, the ability
of Shinsei Bank and Aozora Bank to bring about a recovery in
their financial bases has resulted in upgrades for both banks.
On the other hand, downgrades were seen in businesses such as
electrical equipment, commercial businesses and transport. Due
to a decrease in competitiveness in its mainstay electronics
equipment, Sony has dropped from AA+ to AA, as has Toppan
Printing due to increased risk in its electronics business.
International airlines, Japan Air System and All Nippon Airways,
whose financial bases became fragile as a result of continued
exposure to fluctuations in earnings, went from a BBB+ rating to
BBB.
For further information, please contact
Credit Rating Division, Research Department at +81-3-5644-3450.
=========
K O R E A
=========
DAEWOO MOTOR: Indian Firm Buys Commercial Vehicle Unit
------------------------------------------------------
Daewoo Motor Co. has chosen Tata Motors Ltd. as the "preferred
bidder" for the Company's commercial vehicle unit Daewoo
Commercial Vehicle Co., the Maeil Business Newspaper reports.
The initial agreement will probably be signed next week, the
Maeil Business newspaper reported, citing Daewoo Commercial
Vehicle and KPMG, which it said helped arrange the sale.
HYNIX SEMICONDUCTOR: Unveils Q303 Financial Results
---------------------------------------------------
Hynix Semiconductor Inc. announced results for its third fiscal
quarter of 2003, ended September 30, 2003. The company had total
revenues of 991 billion won for the quarter, an increase of 27
percent sequentially from 778 billion won in the second fiscal
quarter of 2003. The sequential growth in sales was mainly
attributable to the sales increase of major products that Hynix
produces on the strength of the semiconductor market recovery.
The average selling price of DRAMs has increased more than 20
percent compared to the previous quarter, substantially
contributing to the performance improvement. Memory products
sales constituted 83 percent (DRAM: 80 percent, SRAM/Flash: 3
percent) of the total revenues and System IC contributed 18
percent in the third quarter.
Hynix generated 152 billion won of gross profit, which is an
improvement compared to 69 billion won of deficit in the second
quarter. Operating loss was reduced to 21 billion won in the
third quarter compared to 258 billion won in the second quarter.
Despite loss in operating level, Hynix achieved profit in
ordinary income and net income of 134 billion won compared to
530 billion won of loss in the second quarter. The main
contributions to the result are 'gain on valuation of
investments using the equity method of accounting' (124 billion
won) generated from overseas manufacturing and sales
subsidiaries and the reduction in 'loss on valuation of
inventories' (53 billion won).
The consolidated revenues, which include the results of overseas
subsidiaries are 1,081 billion won with 94 billion won of
operating profit. The result in the previous quarter was 845
billion won of revenue with 183 billion won of operating loss.
The consolidated ordinary income and net income have also turned
to profit of 103 billion won from 479 billion won of loss in the
second quarter.
The balance of consolidated cash and cash equivalents as of the
end of Sep. 2003 was 353 billion won. The amount of the
Company's interest-bearing debt was further reduced to 2.6
trillion won and the consolidated interest-bearing debt balance
was 3.8 trillion won. As most of Hynix's remaining debt balance
is scheduled to mature at the end of 2006, the Company will not
be burdened with debt repayment for the next several years.
Against all odds, Hynix has been maintaining its utmost efforts
for technology innovation and cost reduction. Going forward, the
Company will further expand the adoption of its Prime-chip
Technology (0.13um) and migrate to finer geometries of Golden-
chip Technology (0.11um) for the enhancement of productivity and
cost competitiveness.
This release includes a summary of the unaudited results of
Hynix Semiconductor Inc. and its overseas subsidiaries for the
third quarter of 2003. For more up-to-date information on Hynix,
please visit our website at www.hynix.com.
Please note that the financial results discussed above are
preliminary and speak only as of Sep 30, 2003. Readers should
not assume that this information remains operative at a later
time. In addition, this information may include forward-looking
statements that involve a variety of risks and uncertainties
that could cause actual results to differ materially. For
further discussion of these risks and uncertainties, readers
should refer to Hynix Semiconductor Inc.'s filings with the
Korean Securities and Exchange Commission. This document is
neither an offer to sell nor a solicitation of an offer to sell
any security of Hynix. Hynix securities may not be sold in the
United States absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended.
CONTACT:
Hynix Semiconductor Inc.
DongHoon Kang, 408-232-8084
dhkang@us.hynix.com
SK NETWORKS: Auditor Young Wha Faces W90B Lawsuit
-------------------------------------------------
Creditor banks of SK Networks, formerly known as SK Global, will
file a 90 billion won (US$76.2 million) damage claim against the
Company's auditor Young Wha Corporation for making inaccurate
audits over the past 10 years, the Korea Times said on Thursday.
Young Wha, a member firm of U.S.-based Ernst & Young, said it is
impossible for external auditors to uncover fabricated documents
made between banks and enterprises.
===============
M A L A Y S I A
===============
BERJAYA SPORTS: Unveils October 22 EGM Resolutions
--------------------------------------------------
The Board of Directors of Berjaya Sports Toto Berhad (BJTOTO)
announced that at the Company's Extraordinary General Meeting
(EGM) held on 22 October 2003 passed the following ordinary
resolutions:
ORDINARY RESOLUTION 1
- Proposed renewal of and new shareholders' mandate for
recurrent related party transactions of a revenue or trading
nature.
ORDINARY RESOLUTION 2
- Proposed renewal of authority to purchase its own shares
by the Company.
Berjaya Sports Toto Berhad (BJTOTO) recently announced the
conversion of RM 803,350 nominal amount of 8 percent
irredeemable convertible unsecured loan stock (ICULS) 2002/2012
into 798,350 new ordinary shares (conversion), according to TCR-
AP.
GEAHIN ENGINEERING: MGSB, MKK OKs Debt Restructuring Exercise
-------------------------------------------------------------
Geahin Engineering Berhad refers to the announcements dated 23
January 2002 and 21 January 2003.
The Proposed Corporate Restructuring Exercise - Extension of
time pursuant to the Restructuring Agreement dated 23 January
2002 entered into between Mayford Garments Sdn. Bhd. (MGSB),
M.K.K. Industries Sdn. Bhd. (MKK) and GEAHIN Engineering Berhad.
GEAHIN announced that the Company, MGSB and MKK have on 22
October 2003 mutually agreed to extend the cut-off date for the
implementation of the proposed debt restructuring with the
creditors and all other regulatory approvals required for the
implementation of the Proposed Corporate Restructuring Exercise
for a further nine (9) months, expiring 22 June 2004.
MECHMAR CORPORATION: Delists Dormant Unit in RCBS
-------------------------------------------------
Mechmar Corporation announced that the Company's wholly owned
overseas subsidiary, IE Services Pte Ltd, which has been dormant
since 1998 has been struck off the Registry of Companies &
Businesses, Singapore (RCBS) pursuant to section 341 (2) of the
Singapore Companies Act effective from 21 October 2003.
NEPLINE BERHAD: Withdraws Winding Up Petition
---------------------------------------------
The Board of Directors of Nepline Berhad announced that the
Winding-up Petition (No MT3-28-87-2003) filed by Chris Marine
(Singapore) Pte Ltd (the Petitioner) against the Company's
subsidiary, Timor Offshore Sdn Bhd (TOSB), has been withdrawn on
16 October 2003 (the hearing date) in the Shah Alam High Court.
The Petitioner's solicitors in their letter to TOSB's confirmed
the withdrawal solicitors dated 21 October 2003.
PARIT PERAK: LHCB Disposes of Equity Interest
---------------------------------------------
On 18 November 2002, Alliance Merchant Bank Berhad (Alliance)
had, on behalf of Parit Perak Holdings Berhad (PPHB), announced
that PPHB had formulated a plan to regularize its financial
condition as it is an "affected listed issuer" under Practice
Note No. 4/2001 issued by the Kuala Lumpur Stock Exchange (KLSE)
(PN4). The regularization plan (hereinafter referred to as "the
Proposals) have since been approved by the Securities Commission
(SC) via its letters dated 10 March 2003, 14 April 2003, 22
April 2003 and 5 September 2003, the Foreign Investment
Committee via its letter dated 30 December 2002 and Pengurusan
Danaharta Nasional Berhad via its letter dated 14 April 2003.
On 14 October 2003, Alliance had announced that Liqua Health
Corporation Berhad (formerly known as Joycity Holdings Sdn Bhd)
(LHCB), the Company, which will be taking over the listing
status of PPHB on the Main Board of the KLSE, had completed the
acquisition of 100 percent equity interest in PPHB.
On behalf of PPHB, Alliance is now pleased to announce that, in
accordance with the terms of the Proposals, LHCB has on 22
October 2003 disposed of its 100 percent equity interest in PPHB
to Parit Perak Debt Management Sdn Bhd, a special purpose
vehicle nominated by the Special Administrators of PPHB, for a
nominal consideration of RM1.00 (Proposed Disposal).
Hereinafter collectively referred to as the proposals are the
following:
- Proposed PPHB Acquisition;
- Proposed Liqua Acquisition;
- Proposed Buyback;
- Proposed Put and Call;
- Proposed Restricted Offer for Sale;
- Proposed Debt Settlement;
- Proposed Disposal;
- Proposed Placement;
- Proposed Transfer of Listing Status; and Proposed Waiver
TONGKAH HOLDINGS: Warrant Holders OK Proposal
---------------------------------------------
For consistency the abbreviation used throughout this
announcement shall have the same meaning as previously defined
in Tongkah Holdings Berhad (THB)'s announcements dated 22 August
2003, 15 September 2003 and 10 October 2003. Public Merchant
Bank Berhad, on behalf of the Board of THB, announced that at
the Adjourned Warrants Holders Meeting held on 22 October 2003,
the Warrant Holders have unanimously voted in favor of the
Proposed Amendment.
UNITED CHEMICAL: Submits Revised Restructuring Proposal to SC
-------------------------------------------------------------
The second supplemental agreement entered into between United
Chemical Industries Berhad (UCI) and Perbadanan Kemajuan Negeri
Perak and Aspirasi Ekuiti Sdn Bhd on 3 July 2003, Alliance
Merchant Bank Berhad (Alliance) on behalf of the Board of
Directors of UCI, announced that UCI had on even date of this
announcement submitted a Supplemental Application to seek the
SC's approval for the revised Proposed Restructuring.
The Supplemental Application sets out the details of revisions
to the Proposed Restructuring as well as variations to the
financial forecast and projections of the acquiree companies,
namely Harta Perak Corporation Sdn Bhd and its subsidiary
companies, and Syarikat Majuperak Berhad and its subsidiary
companies.
=====================
P H I L I P P I N E S
=====================
BACNOTAN STEEL: Court Appoints Receiver For Rehabilitation
----------------------------------------------------------
Bacnotan Consolidated Industries Inc. (BCII) announced that the
Company received on Friday, October 23, 2003, a copy of a Court
Order from the Makati Regional Trial Court appointing Atty.
Danilo L. Conception as Rehabilitation Receiver of unit Bacnotan
Steel Industries Inc.
Early this month, Bacnotan Consolidated and other creditors of
unit Bacnotan Steel filed a petition for rehabilitation of the
latter with a Makati regional trial court, AFX Asia reports.
Bacnotan Consolidated, which directly owns a 30 percent stake in
Bacnotan Steel, said the unit owed it 67 million pesos as of
December 31, 2001.
For more information, go to
http://www.pse.org.ph/html/disclosure/pdf/dc2003_3379_BCI.pdf
MANILA ELECTRIC: Sees Php3.12B Annual Sales Revenue
---------------------------------------------------
The annual sales revenue of Manila Electric Co. (Meralco)
expects to surge by 3.12 billion pesos if the Philippine Energy
Regulatory Commission (ERC) approves the 0.1358 pesos per
kilowatt-hour rate hike application filed by the power
distributor earlier this month, Dow Jones reports. Meralco
Senior Assistant Vice President for utility economics Ivanna
dela Pena said the estimate also assumes that the Company is
able to maintain its current sales volume.
She said the rate adjustment petition is anchored on the need to
update Meralco's tariffs to more recent levels, particularly on
the re-appraisal of its assets, which was last undertaken in
1998. Meralco's power sales in the first half rose 5.8 percent
on year to 11.59 billion kwh, boosting revenue for the period
7.6 percent on year to PHP65.42 billion.
MANILA ELECTRIC: ERC May Allow Debt Notes Issue
-----------------------------------------------
The Energy Regulatory Commission (ERC) may allow Manila Electric
Co. to issue debt notes, instead of cash refunds, to its
commercial and industrial customer, Business World newspaper
reports, quoting ERC Chairman Manuel Sanchez. But he said the
ERC would still have to check if the Meralco proposal violates
any law.
Meralco has been ordered by the Supreme Court to return
overcharges to customers dating back to 1994, which the Company
expects to cost about 30.5 billion pesos. The Company has so far
paid 2.75 billion pesos either in cash or bill rebates to
customers with electricity consumption of no more than 300
kilowatthours monthly. Earlier Meralco's estimates placed the
refund to industrial and commercial customers, comprising the
bulk of its big users, at 18.0-20.0 billion pesos.
MANILA ELECTRIC: Projects Php1.0B 2003 Net Profit
-------------------------------------------------
Manila Electric Co. (Meralco) expects to meet its 2003 net
profit goal of 1.0 billion pesos, despite cash flow pressures
that it intends to address through a proposed tariff increase of
0.1358 pesos per kilowatthour, AFX Asia reports, citing Company
President Jesus Francisco said. Meralco is pinning its hopes of
sustained profitability on higher electricity sales during the
Christmas holidays.
Meralco officials also refused to provide any indications on the
Company's third quarter results. Despite cash flow pressures,
Meralco was able to settle US$44.00 million in debt obligations
in September and October. In 2004, it expects maturing debts to
reach 11.00 billion pesos, Meralco Vice-President and treasurer
Rafael Andrada said.
MAYNILAD WATER: Lenders Invoke Guarantee on US$80M Loan
-------------------------------------------------------
The bridge lenders of Maynilad Water Services, Inc. on Wednesday
advised Benpres Holdings Corporation that they are calling on
the shareholders' guarantee on the Maynilad bridge loan in the
amount of US$80,061,105,36.
Benpres, with an interest of 59 percent in Maynilad, believes
the action has no significant impact in its current negotiations
with creditors for financial restructuring. Benpres has already
included its share of Maynilad-related bridge loan obligation of
US$48,036,663.22 within the total aggregate on and off-balance
sheet liabilities around US$551,500,000.00 under Benpres's
Balance Sheet Management Plan (BSMP) announced to the public in
June 2002. All bridge lenders are in fact active participants in
the Benpres BSMP discussions and are represented in the overall
creditors committee that regularly meets with Benpres on all
issues regarding its debt restructuring efforts.
For a copy of the disclosure, please visit
http://www.pse.org.ph/html/disclosure/pdf/dc2003_3375_BPC.pdf
PHILIPPINE LONG: Businesses May Require Ample Capital Investment
----------------------------------------------------------------
Philippine Long Distance and Telephone Co. (PLDT)'s businesses
may require substantial capital investment, which the Company
may not be able to finance.
In a disclosure to the Securities and Exchange Commission, the
Company's projects under development and the continued
maintenance and improvement of the Company's networks and
services, including Smart's projects, networks and services,
require substantial ongoing capital investment. The Company's
consolidated capital expenditures in 2001 and 2002 totaled
Php28,201 million and Php17,154 million, respectively. The
Company's 2003 budget for consolidated capital expenditures is
Php15,000 million, of which approximately Php6,000 million is
budgeted to be spent by PLDT and approximately Php9,000 million
is budgeted to be spent by Smart. PLDT's capital spending is
intended principally to finance the continued build-out of its
data and Internet protocol infrastructures and for its data
services and the maintenance of its network. Smart's capital
spending is focused on expanding and upgrading its GSM network
to meet increased demand for cellular services.
Future strategic initiatives could require us to incur
significant additional capital expenditures. The Company plans
to finance a portion of the Company's future capital
expenditures from external financing sources, which have not yet
been fully arranged. The Company cannot assure you that
financing for new projects will be available on terms acceptable
to us or at all. If the Company cannot complete the Company's
development programs and other capital projects, the Company's
growth, results of operations and financial condition could be
materially and adversely affected.
The Company's ability to refinance its debt and raise new
financing to fund the Company's working capital, capital
expenditures and other needs depend on many factors beyond the
Company's control.
In addition to the Company's existing available credit
facilities, the Company may require significant new external
financing in order to fund all of the Company's operating,
investment, capital expenditures and debt service requirements
and to refinance and extend the maturities of the Company's
short and medium-term indebtedness. The Company's ability to
arrange for this and other financing and the cost of such
financing will be dependent on numerous factors outside of the
Company's control, including:
- general economic and capital market conditions, including
the peso-to-U.S. dollar exchange rate;
- the availability of credit from banks or other lenders;
- investor confidence in us;
- investor views about the Philippines;
- the continued success of the Company's business;
- the Company's credit ratings and the sovereign credit
ratings of the Philippines; and
- provisions of tax and securities laws that may be
applicable to the Company's efforts to raise capital.
Any credit rating downgrades may significantly affect the
availability and the terms of the Company's prospective
financing, including financing costs. In addition, restrictions
under the Company's current indebtedness subject us to various
financial tests, which could prevent us from incurring
additional debt. Inability to arrange such debt could materially
and adversely affect the Company's ability to fund the Company's
anticipated operating, investment and capital expenditures as
the well as the Company's anticipated debt service requirements,
and could result in defaults and cross defaults under the
Company's existing debt, thereby adversely affecting the
Company's results of operations and financial condition.
PHILIPPINE LONG: Unveils Consolidated US$3.6B Total Indebtedness
----------------------------------------------------------------
Philippine Long Distance and Telephone Co. (PLDT)'s substantial
indebtedness could impair the Company's ability to fulfill the
Company's financial obligations, service the Company's other
debt and carry out new financings.
In a filing to the Securities and Exchange Commission, as of
December 31, 2002, the Company had consolidated total
indebtedness of approximately Php191,710 million (US$3,600
million), including short-term debt of approximately Php760
million (US$14 million) and a consolidated ratio of debt to
equity (total debt on a consolidated basis divided by
stockholders' equity) of 11.68x. The Company's consolidated
ratio of earnings to fixed charges was less than the minimum
required ratio of 1.0x for the year ended December 31, 2002. For
an explanation of how the Company calculates the Company's
consolidated ratio of earnings to fixed charges, see footnote 7
to the Company's consolidated financial data table under
"Selected Financial Data" and Exhibit 7 in "Item 19." The
Company's existing debt contains covenants, which, among other
things, require PLDT to maintain certain financial ratios
calculated in accordance with Philippine GAAP on a consolidated
and non-consolidated basis, limit the Company's ability to incur
indebtedness, make investments, incur expenditures and pay
dividends. Financial statements prepared in conformity with
Philippine GAAP differ in some material respects from financial
statements prepared in conformity with U.S. GAAP. For a
description of some of these covenants, see "Item 5. Operating
and Financial Review and Prospects - Liquidity and Capital
Resources - Financing Activities - Debt Financing - Covenants."
The Company's substantial indebtedness and the requirements and
limitations imposed by the Company's debt covenants could have
important consequences. For example, they could:
- make it more difficult for us to satisfy the Company's
debt obligations;
- require us to dedicate a substantial portion of the
Company's cash flow to payments on the Company's indebtedness,
thereby reducing the availability of the Company's cash flow to
fund working capital, capital expenditures and other general
corporate requirements;
- limit the Company's ability to refinance the Company's
debt obligations or incur new debt needed to finance the
Company's working capital, capital expenditure or other
requirements;
- limit the Company's flexibility in planning for, or
reacting to, changes in the Company's business and the industry
in which the Company operate; and
- place us at a competitive disadvantage compared to the
Company's competitors.
If the Company is unable to meet the Company's debt service
obligations or comply with the Company's debt covenants, the
Company could be forced to restructure or refinance the
Company's indebtedness, seek additional equity capital or sell
assets. An inability to effect these measures successfully could
result in a declaration of default and an acceleration of some
or all of the Company's indebtedness.
Under the indenture for the Company's 10.625 percent Notes due
2007 and 11.375 percent Notes due 2012, the Company may only
incur additional debt, subject to certain exceptions, if, after
incurrence of such debt, the Company's consolidated leverage
ratio under Philippine GAAP, (the ratio of debt to EBITDA
calculated on a non-consolidated basis based on definitions
provided in the same indenture and except under certain
circumstances) would be less than 5.5 to 1 on or prior to
December 31, 2003, 5.0 to 1 after December 31, 2003, and on or
prior to December 31, 2004 and 4.5 to 1 thereafter. Because the
Company's consolidated leverage ratio presently is in excess of
5.5 to 1, the Company is currently restricted from incurring any
additional debt, subject to certain exceptions, including
exceptions for refinancing transactions. In addition, the
Company expects that the Company will have difficulty meeting
the Company's debt payment obligations if the Company does not
continue to receive cash dividends from Smart.
The Company may not be able to maintain compliance with
restrictive covenants and ratios imposed by the Company's
indebtedness
The Company's debt instruments contain restrictive covenants and
require us to comply with specified financial ratios and other
financial tests calculated in accordance with Philippine GAAP at
relevant measurement dates, principally at the end of quarterly
periods. Financial statements prepared in conformity with
Philippine GAAP differ in some material respects from financial
statements prepared in conformity with U.S. GAAP.
The principal factors that can negatively affect the Company's
ability to comply with these financial ratios and other
financial tests are depreciation of the peso relative to the
U.S. dollar, poor operating performance of PLDT and its
consolidated subsidiaries, impairment or similar charges in
respect of investments or other assets that may be recognized by
PLDT and its consolidated subsidiaries, and increases in the
Company's interest expenses. As of December 31, 2002,
approximately 94 percent of PLDT's consolidated indebtedness was
denominated in foreign currencies, principally in U.S. dollars,
and many of these financial ratios and other tests are
negatively affected by any the weakening of the peso. The peso
declined by approximately 1 percent against the U.S. dollar to
an average of Php51.583 to US$1.00 in 2002 from an average of
Php51.009 to US$1.00 for the year 2001. At December 31, 2002,
the exchange rate was Php53.254 to US$1.00, equivalent to
approximately 3 percent depreciation of the peso relative to the
rate at the end of 2001. At September 30, 2003, the exchange
rate was Php54.877 to US$1.00, equivalent to approximately 3
percent depreciation of the peso relative to the rate at the end
of 2002. Certain of the Company's financial ratios would be
adversely affected by impairment or similar charges. In
addition, certain of the Company's financial ratios would be
adversely affected by increases in interest expense, which may
result from factors including issuance of new debt, the
refinancing of lower cost indebtedness by higher cost
indebtedness, depreciation of the peso, the lowering of PLDT's
credit ratings or the credit ratings of the Philippines, an
increase in reference interest rates and general market
conditions.
PLDT's ability to maintain compliance with financial covenant
requirements measured on a non-consolidated basis is principally
affected by the performance of the Company's fixed line
business, which is predominantly conducted by PLDT. PLDT cannot
be assured of the benefit of results generated by Smart and
PLDT's other subsidiaries and investors in assisting in
complying with non-consolidated covenants or covenants that are
calculated without giving effect to the results of PLDT's
subsidiaries and investors.
To date, the Company has maintained compliance with all of the
Company's restrictive financial ratios and covenants as measured
under Philippine GAAP under the Company's loan agreements and
other debt instruments. However, if negative factors adversely
affect the Company's financial ratios, the Company may be unable
to maintain compliance with these restrictive ratios and
covenants or be unable to incur new debt. During 2001, the
Company's performance under certain of these ratios, including
the Company's total debt to EBITDA and interest coverage ratios,
was close to the permitted thresholds. Under some of the
Company's loan agreements, the requirements with respect to the
Company's debt to EBITDA ratio on a non-consolidated basis has
become more restrictive at the end of the second quarter of 2003
and will continue to become more restrictive in increments
thereafter, which will make it more difficult for PLDT to
maintain compliance with this ratio in the future. In the
future, the Company's performance under certain of the Company's
ratios may again fall close to the permitted thresholds.
Inability to comply with the Company's restrictive financial
ratios and covenants or raise new financing could result in a
declaration of default and acceleration of some or all of the
Company's indebtedness unless the Company are able to obtain
waivers or amendments from the relevant lenders. The terms of
some of the Company's debt instruments have no minimum amount
for cross-default.
URBAN BANK: Supreme Court Dismisses Criminal Case Vs. BSP
---------------------------------------------------------
The Supreme Court has dismissed the petition filed by former
Urban Bank President Teodoro Borlongan questioning the dismissal
by the Ombudsman of the criminal charges he filed against
several Bangko Sentral ng Pilipinas (BSP, the Central Bank of
the Philippines) officials in connection with the closure of
Urban Bank, BSP said in a statement.
In a decision dated October 13, 2003, the Supreme Court said:
"we find no compelling reason to deviate from the ruling of the
Ombudsman that the right to question the action of the BSP
officials in closing the bank and placing it under receivership
belongs only to the stockholders representing the majority of
the capital stock of the banks. (Underscoring ours
The Supreme Court said Borlongan's petition raises the sole
issue of " whether or not the Ombudsman committed grave abuse of
discretion amounting to lack of or in excess of jurisdiction in
dismissing petitioner's complaint for lack of probable cause."
In its order dismissing the case, the Supreme Court ruled that
the determination whether a probable cause exists lies within
the sound discretion of the Office of the Ombudsman.
The Supreme Court declared, " It can be readily discerned that
the findings of the Ombudsman are essentially factual in nature.
Accordingly, in assailing such findings and contending that the
Ombudsman committed grave abuse of discretion, petitioner is
actually raising questions of fact. In resolving whether or not
the Ombudsman committed grave abuse of discretion, a review of
the evidentiary facts is necessary. This we cannot do for this
Court is not a trier of facts. The determination whether a
probable cause exists lies within the sound discretion of the
Office of the Ombudsman. We have more than once declared our
reluctance to interfere in the exercise of such discretion
absent any compelling reason." (Underscoring ours)
In his petition filed with the Supreme Court, Borlongan assailed
the Ombudsman's decision dated June 24, 2003 dismissing his
charges that BSP officials (Bangko Sentral ng Pilipinas Governor
Rafael B. Buenaventura, Deputy Governor Alberto V. Reyes,
Managing Director Dolores Yuvienco, Director Candon Guerrero,
Legal Counsel Juan de Zuniga, Jr., and retired Director Tomas
Aure) violated the laws in connection with the closure of Urban
Bank. In dismissing Borlongan's complaint, the Ombudsman ruled
that there is no probable cause to hold respondents liable for
the crimes charged.
=================
S I N G A P O R E
=================
BOON FONG: Releases Winding Up Order Notice
-------------------------------------------
Boon Fong Manufacturing & Trading Pte Ltd issued a winding up
order notice made on the 10th day of October 2003.
Name and address of Liquidators: Wee Aik Guan and
Tam Chee Chong of Messrs Deloitte & Touche 6 Shenton Way
#32-00 DBS Building Tower Two Singapore 068809.
Dated this 11th day of October 2003.
HARRY ELIAS PARTNERSHIP
Solicitors for the Petitioners.
CHARTERED SEMICONDUCTOR: Releases 3Q03 Financial Results
--------------------------------------------------------
Chartered Semiconductor Manufacturing (CHARTERED), one of the
world's top three dedicated semiconductor foundries, announced
its results for third quarter 2003.
"In the third quarter, we saw improvement in each of the market
sectors that Chartered serves, and our expectation is that
further improvement will take place in the fourth quarter," said
Chia Song Hwee, President & CEO of Chartered. "Revenues of our
total business base in the third quarter were up 32 percent
year-over-year and 14 percent sequentially. The progress we are
continuing to make this year in advanced technology and in
utilization of mature capacity contributed to the growth.
Revenues from advanced technologies were up 50 percent compared
to the fourth quarter of 2002. Revenues of our 0.13-micron
product offering increased over 45 percent sequentially, and now
represent 8 percent of total revenues compared to 1 percent in
the final quarter of last year. Since the fourth quarter of last
year, we have increased shipments of mature technology wafers by
58 percent, and we are in the early stages of seeing additional
benefits from the four-point plan to rationalize and improve
utilization of mature capacity, announced in February.
"During the quarter, we also made several important
announcements that reinforce the progress Chartered is making in
executing on our strategy. In a sign of the growing acceptance
of the Chartered-IBM process platform, Infineon announced that
it would join the team at the 65-nanometer node, bringing
additional strength and expertise, and further expanding market
reach. Chartered also detailed the silicon deliverables for our
NanoAccess(TM) technologies at 90 nanometer and rolled out our
NanoAccess Alliance. Finally, in-line with the plan outlined in
February, Chartered announced the establishment of a new
business relationship in China. Collaborating with Chinese
foundry CSMCTech, Chartered will sell six-inch equipment from
Fab 1 to the new venture and transfer certain mature
technologies in exchange for cash and an equity stake. In
addition to providing a potential income stream, the arrangement
provides another avenue for broadening Chartered's exposure to
the rapidly evolving China market," Chia said.
Summary of Third Quarter 2003 Performance
- Revenues were $137.7 million, up 7.9 percent compared to
second quarter 2003. Revenues including Chartered's share of SMP
were $185.3 million, up 13.6 percent from $163.1 million in the
previous quarter, due to increases in all major market sectors
with the largest contribution coming from the communication
sector. The largest percentage increase occurred in the consumer
sector, which reached its highest revenue level since fourth
quarter 2000. Compared to third quarter 2002, revenues were up
6.3 percent from $129.5 million. Revenues including Chartered's
share of SMP were up 32.0 percent from $140.4 million in the
year-ago quarter, driven primarily by the communication sector
and to a lesser extent the consumer sector.
- Gross loss was $21.7 million, or negative 15.8 percent of
revenues, an improvement from a loss of $27.3 million, or
negative 21.1 percent of revenues in the year-ago quarter,
primarily due to higher revenues and lower depreciation.
Compared to second quarter 2003, gross loss improved $10.7
million, also primarily due to higher revenues and lower
depreciation.
- Research and development (R&D) expenses were $30.3 million, an
increase of 44.8 percent from the year-ago quarter, primarily
due to increased investments to accelerate the Company's
technology roadmap which provides customers a breadth of
processes, enabling systems-level integration.
Beginning in first quarter 2003, R&D expenses include
Chartered's share of expenses related to the IBM joint-
development agreement, announced in November 2002.
- Sales and marketing expenses was $8.3 million, a decline of
27.3 percent from $11.4 million in the year ago quarter,
primarily due to lower financial support for customer
prototyping activities.
- General and administrative (G&A) expenses were $10.8 million,
an increase of 6.7 percent compared to $10.1 million in the
year-ago quarter, and an increase of 145.2 percent compared to
$4.4 million in second quarter 2003. The second quarter included
a gain of $4.9 million resulting from equipment disposition.
Excluding this gain, second quarter 2003 G&A expense would have
been $9.3 million.
- Other operating expenses were $3.3 million, all related to Fab
1 restructuring expense.
- Equity in income (loss) of our minority-owned joint-venture
fab, SMP (Fab 5), was an income of $8.8 million compared to a
loss of $21.5 million in the year-ago quarter, primarily due to
significantly higher revenues.
- Other income was $4.6 million compared to $7.3 million in the
year-ago quarter, and $8.6 million in second quarter 2003. The
third quarter 2002 included significantly higher grant income
related to our R&D and training activities. The second quarter
included a gain of $5.9 million associated with intellectual
property licensing. Excluding this gain, second quarter 2003
other income would have been $2.7 million.
- None of the losses in our consolidated joint-venture fab,
Chartered Silicon Partners (CSP or Fab 6), were allocated to the
minority interest in third quarter, compared to $8.5 million in
the year-ago quarter. CSP remained in a negative net worth
position in third quarter 2003; therefore, Chartered continued
to recognize 100 percent of the joint venture's results, which
were a loss of $48.5 million in the quarter. At the end of the
quarter, CSP's net worth was negative $114.7 million.
- Net loss was $75.9 million, or negative 55.1 percent of
revenues, compared to a net loss of $89.4 million, or negative
69.0 percent of revenues, in the year-ago quarter. Included in
third quarter 2003 net loss was a $3.3 million Fab 1
restructuring expense. $23.8 million due to the CSP accounting
treatment discussed above also unfavorably impacted net loss.
- Loss per American Depositary Share (ADS) and loss per share in
third quarter 2003 were $0.30 and $0.03 respectively, compared
with a loss per ADS and loss per share of $0.56 and $0.06
respectively in third quarter 2002. Average ADS count and
ordinary share count increased by 90.8 million and 908.1 million
respectively, primarily due to the eight-for-ten rights offering
completed in October 2002.
INVESTOR CONTACTS:
Suresh Kumar
(1) 408.941.1110
sureshk@charteredsemi.com
Clarence Fu
(65) 6360.4060
cfu@charteredsemi.com
MEDIA CONTACTS:
Chartered U.S.:
Tiffany Sparks
(1) 408.941.1185
tiffanys@charteredsemi.com
Chartered Singapore:
Maggie Tan
(65) 6360.4705
tanmaggie@charteredsemi.com
CHARTERED SEMICONDUCTOR: Discloses Wafer Shipments in 3Q03
----------------------------------------------------------
Chartered Semiconductor announced wafer shipments in third
quarter 2003 as follows:
In a disclosure to the Securities and Exchange Commission,
shipments in third quarter 2003 were 153.7 thousand wafers
(eight-inch equivalent), an increase of 37.4 percent compared to
111.9 thousand wafers (eight-inch equivalent) in third quarter
2002. Shipments in third quarter 2003 increased by 9.7 percent
compared to 140.1 thousand wafers (eight-inch equivalent)
shipped in second quarter 2003. Shipments including Chartered's
share of SMP were 185.0 thousand wafers (eight-inch equivalent),
an increase of 55.6 percent compared to 118.8 thousand (eight
inch equivalent) in third quarter 2002. Shipments including
Chartered's share of SMP in third quarter 2003 increased by 10.9
percent compared to 166.8 thousand wafers (eight-inch
equivalent) shipped in second quarter 2003.
ASP decreased 1.7 percent from $911 per wafer in second quarter
2003 to $896 per wafer in third quarter 2003, primarily due to
product mix, partially offset by higher shipments of 0.13-micron
wafers. ASP including Chartered's share of SMP increased 2.4
percent from $978 per wafer in second quarter 2003 to $1,002 per
wafer in third quarter 2003.
CAPACITY AND UTILIZATION
Capacity utilization in third quarter 2003 was 59 percent
compared to 39 percent in the year-ago quarter, and 55 percent
in second quarter 2003. Capacity in third quarter 2003 was up
approximately 3 percent sequentially. Capacity utilization is
based on total wafer shipments and total capacity, both of which
include our share of SMP.
UTILIZATION TABLE
Data including Chartered's share of SMP
Thousand 8" equivalent 3Q 2002 4Q 2002 1Q 2003 2Q 2003 3Q
2003
Total wafers shipped 118.8 118.9 135.4 166.8 185.0
Total capacity 304.6 301.1 297.8 305.4 313.7
Utilization 39 % 39 % 45 % 55 % 59 %
About Chartered
Chartered Semiconductor Manufacturing, one of the world's top
three dedicated semiconductor foundries, is forging a customized
approach to outsourced semiconductor manufacturing by building
lasting and collaborative partnerships with its customers. The
Company provides flexible and cost-effective manufacturing
solutions for customers, enabling the convergence of
communications, computing and consumer markets. In Singapore,
Chartered operates five fabrication facilities and has a sixth
fab, which will be developed as a 300mm facility.
A Company with both global presence and perspective, Chartered
is traded on both the Nasdaq Stock Market (Nasdaq: CHRT) and on
the Singapore Exchange (SGX-ST: CHARTERED). Chartered's 3,500
employees are based at 11 locations around the world.
Information about Chartered can be found at
www.charteredsemi.com.
CHARTERED SEMICONDUCTOR: Unveils Business Statistics Tables
-----------------------------------------------------------
The following business statistics tables provide information on
revenues including Chartered Semiconductor Manufacturing 's
share of SMP by market sector, region and technology.
Breakdown by Market Sector
Revenues including Chartered's share of SMP Percentage of Total
3Q 2002 4Q 2002 1Q 2003 2Q 2003 3Q 2003
Communications 39 % 47 % 43 % 49 % 49 %
Computer 46 % 40 % 43 % 34 % 33 %
Consumer 12 % 9 % 10 % 14 % 15 %
Other 3 % 4 % 4 % 3 % 3 %
Total 100 % 100 % 100 % 100 % 100 %
Breakdown by Region
Revenues including Chartered's share of SMP Percentage of Total
3Q 2002 4Q 2002 1Q 2003 2Q 2003 3Q 2003
Americas 73 % 62 % 57 % 59 % 62 %
Europe 14 % 16 % 25 % 21 % 18 %
Asia-Pacific 8 % 15 % 13 % 15 % 15 %
Japan 5 % 7 % 5 % 5 % 5 %
Total 100 % 100 % 100 % 100 % 100 %
Breakdown by Technology (micron)
Revenues including Chartered's share of SMP %age of Total
3Q 2002 4Q 2002 1Q 2003 2Q 2003 3Q 2003
0.13 and below 0 % 1 % 1 % 6 % 8 %
Up to 0.15 0 % 2 % 9 % 8 % 15 %
Up to 0.18 40 % 36 % 33 % 22 % 16 %
Up to 0.25 19 % 19 % 15 % 17 % 20 %
Up to 0.35 21 % 24 % 23 % 25 % 23 %
Above 0.35 20 % 18 % 19 % 22 % 18 %
Total 100 % 100 % 100 % 100 % 100 %
0.18 and below 40 % 39 % 43 % 36 % 39 %
Recent Highlights and Events
- Chartered, IBM and Infineon announced a joint development
agreement to accelerate the move to 65-nanometer semiconductor
manufacturing process technology. Under this multi-year
engagement, Chartered, IBM, and Infineon plan to jointly develop
a common advanced foundry process at 65 nanometer, as well as
variants tuned for high performance and low power. The companies
are also exploring extensions to 45-nanometer technology. To
assist foundry customers in designing with these technologies,
the companies have also agreed to work together with third-party
providers to provide a robust ecosystem of optimized design
tools.
This announcement is an extension of the Chartered-IBM joint
development agreement announced in November 2002, to drive a
common foundry process platform that scales from 90 nanometer
through next-generation 65-nanometer technology and provides a
path to 45 nanometer.
- Chartered detailed the deliverables for its NanoAccess SoC
manufacturing technologies at the 90- nanometer node, which are
based on the Chartered-IBM process platform, and also announced
immediate availability of design manuals and SPICE models.
Initial process qualification for both FTEOS and low-k
dielectric options is targeted for completion by the first
quarter of 2004.
- Chartered also announced formation of the NanoAccess Alliance
in support of its manufacturing technologies at 90 nanometer and
beyond. Under the NanoAccess Alliance, Chartered and more than
15 leading third-party companies are pre-qualifying 90-nanometer
design solutions for earlier silicon validation and lower risk
production of leading-edge integrated circuits and system-on-
chip devices.
- Chartered entered into an arrangement with CSMC Technologies
(CSMC-Tech), in order to leverage its equipment assets in Fab 1,
technology and expertise in mature processes. The announcement
also marked a significant milestone toward executing to its fab
rationalization plan.
Under the arrangement, Chartered will sell equipment, transfer
and license selected proven mature process technologies, and
provide the required operational assistance to CSMC-Tech for a
total of $33 million, in cash and an equity stake.
CORONATION SHIPPING: Issues Debt Claim Notice to Creditors
----------------------------------------------------------
Notice is hereby given that the creditors of Coronation Shipping
Pte Ltd (In Members' Voluntary Liquidation), which is being
wound up voluntarily, are required on or before the 19th day of
November 2003 to send in their names and addresses, with
particulars of their debts or claims and the names and addresses
of their solicitors (if any) to the undersigned, the Liquidator
of the said Company, and, if so required 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.
Dated this 17th day of October 2003.
LOKE POH KEUN
Liquidator.
c/o 8 Cross Street #17-00
PWC Building
Singapore 048424.
DBS GROUP: Units Enter Liquidation
----------------------------------
Following the merger between the Vickers Ballas Group and the
DBS Securities Group in September 2001, there was duplication in
the number of companies required for the merged business of the
renamed DBS Vickers Group. The redundant companies below have
consequently either been liquidated or put into liquidation.
This will have no impact on the customers or business of the DBS
Vickers Group, as well as no material impact on the DBS Group.
a) The following companies in the DBS Vickers Group have been
liquidated or dissolved:
J Ballas Trading Pte Ltd
Vernant Assets Limited
Oriental Hearts International Ltd
Pan Shine Investments Ltd
Vickers Ballas Hong Kong Holdings Ltd
Vickers Ballas (BVI) Holdings Ltd
DBS Securities Philippines Inc
b) The following companies in the DBS Vickers Group have been
placed in liquidation:
DBS Vickers Securities Malaysia Pte Ltd
Vidasia Nominees Limited
J Ballas (Hong Kong) Company Limited
Vickers Ballas Hong Kong Securities Ltd
Vickers Ballas Capital Ltd
DBS Securities Nominees (HK) Ltd
DBS Securities Holding Pte Ltd
DBS Trading Pte Ltd
DBS Vickers Securities (Philippines) Inc
PT DBS Securities Indonesia
Vickers Ballas (UK) Plc.
DBS Vickers Securities Holdings Pte Ltd (DBSVSH) is the parent
Company of the DBS Vickers sub-group within the DBS Group of
companies. DBSVSH is a wholly owned subsidiary of DBS Bank Ltd,
in turn a wholly-owned subsidiary of DBS Group Holdings Ltd.
DBS SECURITIES: Creditors Must Submit Claims by November 19
-----------------------------------------------------------
The creditors of DBS Securities Holdings Pte Ltd (In Members'
Voluntary Liquidation), are required on or before the 19th day
of November 2003 to send in their names and addresses, with
particulars of their debts or claims and the names and addresses
of their solicitors (if any) to the undersigned, the Liquidator
of the said Company, and, if so required by notice in writing by
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.
KO CHIN SIONG
Liquidator.
c/o 8 Cross Street
#02-01 PWC Building
Singapore 048424.
FLEXTRONICS INTERNATIONAL: Discloses 2Q03 Financial Results
-----------------------------------------------------------
On October 22, 2003, Flextronics International Ltd. issued a
press release announcing its results for the first fiscal
quarter ended September 30, 2003.
The press release includes proforma-operating results. Proforma
operating results are not based on any standardized methodology
prescribed by U.S. generally accepted accounting principles (
GAAP) and are not necessarily comparable to similar measures
presented by other companies. Proforma operating results should
not be considered in accordance with GAAP.
(In millions, except EPS) (1)
QUARTER ENDED
SEPT 30, JUNE 30, SEPT 30,
2003 2003 2002
Net sales $3,503.2 $3,106.7 $3,340.6
Proforma Operating Income $73.5 $48.6 $72.3
GAAP operating income (loss)$13.3 $(278.5) $72.3
Proforma net Income GAAT net
income (loss) $(100.1) $(289.7) $34.7
Diluted Proforma EPS $0.09 $0.04 $0.08
Diluted GAAP EPS $(0.19) $(0.56) $0.07
SIX MONTHS ENDED
SEPT 30, 2003 SEPT 30, 2002
Net sales $6,609.9 $6,467.6
Proforma Operating Income $122.2 $124.7
GAAP operating income (loss)$(265.2) $(83.1)
Proforma net Income GAAT net
income (loss) $68.0 $70.1
Diluted Proforma EPS $0.12 $0.13
Diluted GAAP EPS $(0.75) $(0.19)
(1) Proforma results exclude intangibles amortization, costs
associated with the early extinguishments of debt and
restructuring charges, as applicable. See Schedules for a
reconciliation of proforma results to generally accepted
accounting principles (GAAP) results.
Net sales totaled $3.5 billion for the second quarter ended
September 30, 2003, reflecting a 13 percent sequential increase.
Proforma net income was $47.5 million or 9 cents per diluted
share for the quarter, which represents a sequential increase of
133 percent in proforma net income. Including after-tax
amortization expense of $7.7 million and unusual charges of
$139.9 million, we incurred a net loss of $100.1 million on a
GAAP basis, which is a 19-cent loss on a diluted per share
basis.
The unusual charges recorded in the second quarter ended
September 30, 2003 include a $95.2 million loss on the early
retirement of debt, relating to a refinancing that should reduce
annual interest expense by more than $43 million, which
increases earnings per share by 7 cents. Unusual charges also
include after-tax charges of $44.7 million, relating to our
previously announced restructuring plan, which we expect to
complete by the end of our fiscal year.
"The September quarter revenues and earnings were significantly
better on a sequential basis, which supports our belief that end
markets have improved," said Michael E. Marks, Chief Executive
Officer of Flextronics. "We have improved our capital structure,
lowered our interest expense and improved annual cash flow by
reducing high coupon interest payments. Cash flow is good and
spending is under control, as evidenced by the sequential
reduction of more than 6 percent in SG&A expenses."
Addressing the business outlook, Marks added, "We believe that
next year should show improvement in several areas. The industry
will be nearly finished with major restructurings, excess
equipment capacity should be substantially reduced, and demand
should be better. With the expected increase in profits from our
ODM, logistics, design and network services, the Company believe
that Flextronics is well positioned for growth in revenue and
profits. We are increasingly confident that our business is
improving."
In terms of guidance, the Company indicated that the December
quarter should generate sales in the range of $3.6 - $3.9
billion and proforma earnings of $0.13 - $0.15 per diluted
share. This represents an increase in the bottom end of our
previous guidance of two cents per share. Expectations for the
March quarter reflect a typical sequential decline in sales to a
range of $3.0 - $3.3 billion, and a related typical decline in
proforma earnings to a range of $0.07 to $0.09 per diluted
share. GAAP earnings are expected to be lower than proforma
earnings reflecting approximately two cents per diluted share of
quarterly amortization expenses as well as further restructuring
charges, which we expect will range in the aggregate from $50 -
$60 million, or a total of eight to ten cents per diluted share,
spread over the next few quarters. The actual timing of such
charges, and accordingly the actual difference between quarterly
proforma and GAAP earnings, has yet to be determined.
A conference call hosted by Flextronics' management will be held
on October 22 at 1:30 p.m. PDT to further discuss the financial
results of the Company and its future outlook. This call will be
broadcast via the Internet and may be accessed by logging on to
the Company's website at www.flextronics.com. Additional
information in the form of a slide presentation and CEO's Letter
that summarizes and discusses the quarterly results may also be
found on the site. A replay of the broadcast will remain
available on the Company's website after the call.
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.
ABOUT FLEXTRONICS
Headquartered in Singapore, Flextronics is the leading
Electronics Manufacturing Services (EMS) provider focused on
delivering operational services to technology companies. With
fiscal year 2003 revenues of $13.4 billion, Flextronics is a
major global operating Company with design, engineering,
manufacturing and logistics operations in 29 countries and five
continents. This global presence allows for manufacturing
excellence through a network of facilities situated in key
markets and geographies that provide its customers with the
resources, technology and capacity to optimize their operations.
Flextronics' ability to provide end-to-end operational services
that include innovative product design, test solutions,
manufacturing, IT
FLEXTRONICS CONTACTS:
Thomas J. Smach
Senior Vice President of Finance
+1.408.576.7722
investor_relations@flextronics.com
Renee Brotherton
Director of Corporate Marketing
+1.408.576.7189
renee.brotherton@flextronics.com
OCEAN CAPITAL: Winding Up of Subsidiaries
-----------------------------------------
Ocean Capital Berhad (Ocean) announced that a winding-up
petition had been served on Pasaraya Ocean (J.B) Sdn. Bhd.,
Pasaraya Ocean (Melaka) Sdn. Bhd., Pasaraya Ocean (Seremban)
Sdn. Bhd. and Pasaraya Hugo (Kajang) Sdn. Bhd. (collectively
known as Ocean Subsidiaries) on 21 October 2003, for claim of
RM11,625.28, RM53,720.38, RM16,499.46 and RM12,149.72
respectively. The winding-up petition on the Ocean Subsidiaries
was presented at the Shah Alam High Court on 5 September 2003
and the sealed winding-up petition was served on 21 October
2003.
(a) The details of default or circumstances leading to the
filing of the winding-up petition against Ocean Subsidiaries :
Messrs Low & Lee, the solicitors for Pan Creative Sdn. Bhd.
against Ocean Subsidiaries, filed the petition. The claim by Pan
Creative Sdn. Bhd. is for the debt due from Ocean Subsidiaries
for the purchase of merchandise stocks.
(b) The total cost of investment in the Ocean Subsidiaries is as
follows:
(i) Pasaraya Ocean (J.B) Sdn. Bhd. - RM2.5 million
(ii) Pasaraya Ocean (Melaka) Sdn. Bhd. - RM1 million
(iii) Pasaraya Ocean (Seremban) Sdn. Bhd. - RM1million
(iv) Pasaraya Hugo (Kajang) Sdn. Bhd.- RM1million
(c) The financial and operational impact on the Group:
There is no financial and operational impact on the Group.
(d) The expected losses:
At this point in time, the Ocean Subsidiaries are expected to
incur legal fees of approximately RM25,000.00.
(e) The date of hearing of the winding-up petition : 6 May 2004.
(f) The steps taken and proposed to be taken by Ocean
Subsidiaries in respect of the winding-up proceedings:
(i) To file an application to stay the winding-up proceeding and
to refrain the petitioner from advertising and gazetting the
winding-up petition; and
(ii) To oppose the winding-up petition.
OZIBOU.COM PTE: Issues Dividend Notice
--------------------------------------
Ozibou.com Pte Ltd. (In Creditors' Voluntary Liquidation) issued
a notice of intended dividend as follows:
Address of former registered office: 27 Ubi Road 4 #04-01 MSL
Building Singapore 408618.
Last day for receiving proofs: 31st October 2003.
Name of liquidators: CHEE YOH CHUANG & LIM LEE MENG.
Address of liquidators : c/o 18 Cross Street #08-01 Marsh &
McLennan Centre Singapore 048423.
Dated this 17th day of October 2003.
CHEE YOH CHUANG
LIM LEE MENG
Liquidators.
ST ASSEMBLY: Sees Net Profit in Third Quarter
---------------------------------------------
ST Assembly Test Services Ltd. expects to post a net profit of
US$825,000 in the third quarter ending in September 30, marking
a turnaround in the chip testing and packaging Company's
fortunes that have seen it stumble in red ink for the past 10
quarters, Dow Jones reports, citing unnamed analysts. The
forecasts vary from a profit of US$5.8 million to a US$1.7
million loss.
In the third quarter a year ago, ST Assembly recorded a loss of
US$17.6 million and revenue of US$63.1 million. Even those
analysts estimating a loss in the third quarter say their
forecasts veer on the conservative side, adding that there is a
chance ST Assembly could turn in a profit this time.
ST Assembly tests and packages chips for companies like Broadcom
Corp. (BRCM) and Chartered Semiconductor Manufacturing Ltd.
(CHRT).
ST ASSEMBLY: Unveils Third Quarter 2003 Conference Call
-------------------------------------------------------
ST Assembly Test Services Ltd., a leading independent
semiconductor test and advanced packaging service provider,
plans to issue it's press release on the results of the third
quarter 2003 on Wednesday, October 29, 2003, Singapore, before
market opens on the Singapore Exchange.
A conference call has been scheduled for 8:00 a.m. in Singapore
on October 29, 2003. This will be 9:00 a.m. on October 29 in
Tokyo, 4:00 p.m. on October 28 in San Francisco, 7:00 p.m. on
October 28 in New York, and 12:00 a.m. on October 29 in London.
During that call, a portion of time has been set-aside for
analysts and interested investors to ask questions of executive
officers.
Calling 719/457-2728 and referencing confirmation code 668805
may access the call. The playback will be available
approximately three hours after the conclusion of the conference
call and is accessible by dialing 719/457-0820 and referencing
confirmation code 668805. The Company will also webcast the
conference call live through CCBN at http://www.stts.com.
About ST Assembly Test Services Ltd. (STATS)
ST Assembly Test Services Ltd, is a leading semiconductor test
and assembly service provider to fabless companies, integrated
device manufacturers and wafer foundries. With it's principal
operations in Singapore and global operations in the United
States, United Kingdom, Japan and Taiwan, STATS offers full
back-end turnkey solutions to customers worldwide. STATS'
expertise is in testing mixed-signal semiconductors, which are
extensively used in fast growing communications applications
such as data networking, broadband and mobile communications.
STATS also offer advanced assembly services and have developed a
wide array of traditional and advanced lead frame and laminate
based products, including various ball grid array packages to
serve some of the world's technological leaders. STATS was
listed on the Nasdaq National Market and The Singapore Exchange
in January 2000 and is in the Morgan Stanley Capital
International (MSCI) Index and the Straits Times Industrial
Index. Further information is available at www.stts.com.
CONTACT:
ST Assembly Test Services Ltd.
SINGAPORE CONTACTS:
Elaine Ang (IR), 65-68241738
Fax: 65-68228887
angelaine@stats.st.com.sg
or
Khor Hwee Eng, 65-68241291
Fax: 65-68227831
khorhweeeng@stats.st.com.sg
US CONTACTS:
Drew Davies (IR), 408-586-0608
Fax: 408-586-0652
daviesd@statsus.com
or
Lisa Lavin, 208-939-3104
Fax: 208-939-4817
lavinl@statsus.com
VICPLAS INTERNATIONAL: Widens 2003 Net Loss to S$3.62M
------------------------------------------------------
Vicplas International posted a net loss of S$3.62 million in the
year ending in July 31, 2003, versus a net loss of S$1.99 a year
earlier, according to Reuters. The Company does not expect to be
profitable in the next six months.
Vicplas International Limited is a manufacturer and distributor
of pipefittings and electrical conduits.
===============
T H A I L A N D
===============
BANGKOK LAND: Embarks on Major Housing Project
----------------------------------------------
Assured of completing its debt-restructuring by March next year,
Bangkok Land Plc announced Tuesday it will join a major housing
project near the Srinakarin Road.
The company will partner with French construction company,
Bouygues, in implementing this project, CEO Anant Kanjanapas
told Bangkok Post in an interview earlier this week. Once
completed, the Srinakarin Park housing estate will have between
4,000 and 5,000 detached houses that will be priced between THB8
million and THB15 million.
"The project will be developed in phases over five to 10 years.
Construction of the first 460 units will start near the end of
this year and sales by CB Richard Ellis will begin early next
year," Bangkok Post said.
Two weeks ago, creditors agreed to reduce the company's debt to
THB2.45 billion from THB13.81 billion, according to TCR-Asia
Pacific. The agreement guarantees the conclusion of the
company's rehabilitation early next year. To make this
possible, major creditor Thai Asset Management Corporation
agreed to accept THB6 billion worth of assets from the company
in exchange for debts. Commercial banks also agreed to accept
assets worth THB3.98 billion as payment for the company's debts.
KRUNG THAI: Buys 11 Million Siam Steel Preferred Shares
-------------------------------------------------------
Re : Purchase of shares of the Siam Steel Syndicate
Company Limited
To : President, The Stock Exchange of Thailand
Reference: CMD No. 423 /2546
We, Krung Thai Bank Public Company Limited, would like to inform
that we completed purchasing the 11,892,638 preferred shares of
the Siam Steel Syndicate Company Limited as described below:
Objective : Debt Restructuring
Type of Business : Steel Bar Manufacturer
Registered Capital : THB472,381,200
Par Value : THB10.00 per share
Type of Transaction : Buying of 11,892,638
preferred shares of the
Siam Steel Syndicate
Company Limited at Baht
0.01 per share. And after
this transaction KTB will
hold 25.16% of the
registered capital of the
Siam Steel Syndicate
Company Limited.
This transaction is not regarded as transaction of acquisition
or disposal of the assets of a listed company according to the
specified criteria and as the scope of connected transaction of
a listed company.
We appreciated your kind acknowledgement of the mentioned and
taking the process on your part relevant to this matter.
Sincerely yours,
For Krung Thai Bank Public Company Limited
Mr. Suwit Udomsab
Senior Executive Vice President
International Business & Financial Markets Group
PAE (THAILAND): Corrects Latest Update on Rehabilitation Plan
-------------------------------------------------------------
Re: PAE Thailand Public Company Limited (PAE) Notice of
Correction
To: President, The Stock Exchange of Thailand
Dear Sir,
We refer to our letter dated 20 October 2003 stating the Report
to update the Rehabilitation Progress of PAE.
Please note that there is a correction to be made to Paragraph
two (2). The words "reject the capital" should be substituted
with "inject the capital."
Yours faithfully,
Ian Pascoe
Director
GTT PLANNERS CO., LTD.
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Shareholders Total
Equity Assets
Company Ticker ($MM) ($MM)
------- ------ ------------ -------
CHINA & HONG KONG
-----------------
Guangdong Sunrise Holdings
Co., Ltd. 000030 (184.24) 23.04
Jinan Qingi Motorcyle
Co., Ltd. 600698 (193.08) 113.96
Shenzhen China Bicycles
Co., Ltd. 000017 (239.91) 60.39
Shenzhen Great Ocean
Shipping Co., Ltd. 200057 (10.87) 11.27
INDONESIA
---------
PT Lippo Securities Tbk LPPS (3.62) 14.26
PT Mulia Industrindo Tbk MLIA (118.23) 479.02
Smart Tbk SMAR (37.38) 398.89
MALAYSIA
--------
CSM Corporation Bhd CSMB (8.92) 45.11
Faber Group Bhd FBMS (7.16) 504.98
Hotline Furniture Bhd HOTF (19.68) 11.80
Kemayan Corp Bhd KOPS (289.67) 114.38
Kuala Lumpur Industries Bhd KLIS (107.69) 116.92
MBf Corp Bhd MBFS (516.81) 189.99
Panglobal Bhd PGL0 (35.72) 191.12
Promet Bhd PMPT (148.71) 65.25
Saship Holdings SASH (168.68) 136.30
Sri Hartamas Bhd SRIH (118.91) 99.76
Tongkah Holdings Bhd TKHS (78.01) 112.62
Uniphoenix Corporation Bhd UNI (145.25) 33.34
PHILIPPINES
-----------
Pilipino Telephone Co PNOTF (356.17) 122.97
SINGAPORE
---------
Pacific Century Regional
Developments Ltd PCEN (931.65) 7369.85
THAILAND
--------
Datamat PCL DTM (9.53) 13.16
National Fertilizer PCL NFC (30.82) 297.40
Thai Nam Plastic PCL TNPC (2.00) 24.33
Tuntex (Thailand) PCL TUN (26.82) 381.43
Each Friday edition of the Troubled Company Reporter - Asia
Pacific contains a list of companies with insolvent balance
sheets based on the latest publicly available balance sheet
available to our editors at the time of publication. At first
glance, this list may look like the definitive compilation of
stocks that are ideal to sell short. Don't be fooled. Assets,
for example, reported at historical cost net of depreciation may
understate the true value of a firm's assets. A company may
establish reserves on its balance sheet for liabilities that may
never materialize. The prices at which equity securities trade
in public market are determined by more than a balance sheet
solvency test.
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
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subscription or balance thereof are $25 each. For subscription
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*** End of Transmission ***