/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/031028.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 28, 2003, Vol. 6, No. 213 Headlines A U S T R A L I A AMP LIMITED: Sends out Demerger Details to Shareholders CENTRAL NORTH: Sells Assets, Licenses for Undisclosed Amount EPIC ENERGY: Crucial Tariff Talks with Patrons in Homestretch C H I N A BRILLIANT SUN: Winding up Hearing Set November 26 COMTECH ENGINEERING: Belden International Files Wind up Petition POLYGOLD ASIA: Petition Seeking Wind Up Set for Hearing SHAMROCK RESTAURANT: Court Sets Winding up Hearing Nov. 19 TECHNICS ENTERPRISES: Banker Initiates Wind up Proceedings I N D O N E S I A ASTRA INTERNATIONAL: Unit's Debt Plan Needs 100% Acceptance J A P A N COSMO OIL: JCR Downgrades Bonds/CP to BBB/J-2 DAIEI INC.: Plans Equity Swap for Hawks HITACHI LIMITED: Reorganizes Chip-Manufacturing Units NIKKO CORDIAL: Purchases Convertible Bonds from Citigroup NISSAN MOTOR: Slashes Domestic Firms to 100 RESONA HOLDINGS: Solicits Early Retirements SUZUTAN CO.: Unveils Rehabilitation Scheme TOSHIBA CORPORATION: Selling Stocks in Subsidiary TOSHIBA CORPORATION: Unveils 1H03 Financial Results TOSHIBA CORPORATION: Shares Down 5.2% After Profit Forecast K O R E A HANARO TELECOM: Winning Consortium Launches Financing KOLON INDUSTRIES: Unveils Restructuring Scheme KOOKMIN BANK: 2003 Third Quarter Results KOREA THRUNET: Submits Restructuring Plan SK NETWORKS: Young Wha Struggles to Avoid Suits SSANGYONG CORPORATION: Creditors Conduct Debt-Equity Swap M A L A Y S I A KSU HOLDINGS: KSE Issues Public Reprimand MAXIS COMMUNICATIONS: Reorganization Takes Effect November 1 NCK CORPORATION: Unit Enters Alliance With Swissplex Sdn OCEAN CAPITAL: Clarifies Winding Up Petition Report SCK GROUP: KLSE Delists Securities TAT SANG: KLSE Delists Securities TRU-TECH HOLDINGS: Fails to Meet Coupon Payment on RULS P H I L I P P I N E S MANILA ELECTRIC: Seeks ERC Refund Scheme Approval NATIONAL BANK: Mulls PhP40B Asset Sale Via SPV NATIONAL BANK: Clarifies NPL Ratio Report PHILIPPINE TELEGRAPH: ASM Set for November 28 S I N G A P O R E DAPHA ELECTRONICS: Winding Up Hearing Set November 7 DREAM ALLIANCE: Releases Dividend Notice I.T.I. COMMUNICATIONS: Issues Winding Up Order Notice MAXIMILLION BUILDING: Winding Up Hearing Set November 7 STRAITS INTERNATIONAL: Petition to Wind Up Pending T H A I L A N D * BOND PRICING: For the week of October 20 - October 24, 2003 - - - - - - - - ================= A U S T R A L I A ================= AMP LIMITED: Sends out Demerger Details to Shareholders ------------------------------------------------------- AMP Ltd. has started mailing its 576-page explanation on its plan to demerge the troubled U.K. operations from its relatively healthy Australasian business, The Age said yesterday. Approximately 850,000 Australian homes will receive the Explanatory Memorandum, which outlines the rationale for the demerger. CEO Andrew Mohl urged shareholders to take the time to read the proposal, which he said has the full backing of the board. "Today represents a watershed in the company's 155-year history," he told journalists in Sydney yesterday. "After the difficulties of the past few years we are bringing AMP back home because it make good business sense." He said the demerger documents contained "plenty of tangible evidence" of the strength and value of AMP's business. "It includes the reasons for the demerger, its implications and an independent expert's report -- everything shareholders need to make a rational and informed decision," he added. Essentially, AMP proposes that shareholders vote to form two separate companies -- AMP in Australasia and HHG in the U.K. -- after which they would receive one HHG share for each AMP share they hold at the demerger date. Asked whether the proposal will make the company vulnerable to takeover, Mr. Mohl admitted it would: "We recognize there is more potential for a takeover of either company as a result of the demerger. Ultimately, that is another reason why shareholders would benefit from the proposal, but of course management is very keen to see AMP go forward as an independent successful company." CENTRAL NORTH: Sells Assets, Licenses for Undisclosed Amount ------------------------------------------------------------ An affiliate of Harvard Management Co. has gobbled up some of the assets of Central North Island Forest Partnership, a New Zealand firm presently under receivership. GMO Renewable Resources, which advised the Harvard Management affiliate, told Dow Jones the purchase does not include the underlying land, which is owned by the government. The deal only covered the Crown Forest licenses of the partnership, including the trees and other assets. The adviser refused to disclose the purchase price. Ferrier Hodgson & Co., one of Central North's receivers, confirmed the sale, according to Dow Jones. The partnership, which maintains one of the Southern Hemisphere's largest man- made pine forests, is a joint venture between Fletcher Challenge Forests Ltd. and China International Trust & Investment Corp. EPIC ENERGY: Crucial Tariff Talks with Patrons in Homestretch ------------------------------------------------------------- Troubled pipeline operator, Epic Energy, is close to concluding a crucial deal with two of its three largest customers, The West Australian said yesterday. The company, which is hard-pressed to sell its AU$2.4 billion pipeline before a life-saving debt standstill expires in March next year, has been seeking approval of a proposed tariff hike to attract bidders. The paper said a deal with Alinta and Western Power -- two of Epic's major customer -- could be had within a month. The other patron, Alcoa, is still at loggerheads with Epic, according to the report. Largest of the three customers that account for 90% of Epics revenues, Alcoa anchors its adamance on the ruling of the West Australian gas regulator in May. But Epic maintains the tariffs set earlier this year was far too low for it to make an acceptable return on the pipeline or fund a crucial pipeline expansion needed to cater to an expected doubling in WA gas demand over the next 20 years. A tariff hike would definitely attract bidders to Epic's pipeline, according to the paper. The company has barely four months to peddle the Dampier-Bunbury pipeline, or its four other pipelines in the Eastern States before a current debt moratorium expires. Already, the plan has hit a snag -- two weeks ago potential bidders raised 'confidentiality issues' on the company's plan to set up a data room. This data room is unlikely to open before next week, the paper said. This means that the deadline for first and final bids for the two asset packages has been pushed further to mid-January from December 8. "The sale must be concluded by mid-March, when Epic must meet a US$1.85 billion repayment owed to the banks, which funded its purchase of the Dampier-Bunbury pipeline in 1998," The West Australian said. Sources privy to the negotiations with Alinta and Western Power told The West Australian there was "definitely some movement" in regards to a deal. One said the talks were "moving ahead pretty well" and should be concluded "reasonably soon." Neither Western Power nor Alinta would comment about the talks, the paper said. ========= C H I N A ========= BRILLIANT SUN: Winding up Hearing Set 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 Brilliant Sun Development Co. Limited. So Kin Hing of Room 1304, Yue Shun House, Yue Wan Estate, Chaiwan, Hong Kong filed the petition on October 3, 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. COMTECH ENGINEERING: Belden International Files Wind up Petition ---------------------------------------------------------------- The High Court of Hong Kong will hear on November 26, 2003 at 9:30 a.m. the petition seeking the winding up of Comtech Engineering and Consultant Co. Limited. Belden International Inc. of Unit 2101, 21st Floor, Cosco Tower, Grand Millennium Plaza, 183 Queen's Road Central, Hong Kong filed the petition on September 29, 2003. Johnson Stokes & Master represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Johnson Stokes & Master, which holds office on the 18th Floor, Prince's Building, 10 Chater Road, Central Hong Kong. POLYGOLD ASIA: Petition Seeking Wind Up Set for Hearing ------------------------------------------------------- The High Court of Hong Kong will hear November 19, 2003 at 9:30 a.m. the petition seeking the winding up of Polygold Asia Limited. Lam Mei Ha of G/F., 45 Tai Tei Tong Vilage, Mui Wo, Lantau Island, 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. SHAMROCK RESTAURANT: Court Sets Winding up Hearing Nov. 19 ---------------------------------------------------------- The High Court of Hong Kong will hear on November 19, 2003 at 9:30 a.m. the petition seeking the winding up of Shamrock Restaurant Limited. Law Yiu Tung of Room 3118, Kwai Tai House, Kwai Fong Estate, Kwai Chung, New Territories, 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. TECHNICS ENTERPRISES: Banker Initiates Wind up Proceedings ---------------------------------------------------------- The High Court of Hong Kong will hear on November 26, 2003 at 10:00 a.m. the petition seeking the winding up of Technics Enterprises (International) Limited. Bank of China (Hong Kong) Limited of 14th Floor, Bank of China Tower, No. 1 Garden Road, Central, Hong Kong filed the petition on September 30, 2003. Ford, Kwan & Co. represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Ford, Kwan & Co., which holds office at Rooms 1202-1206, Wheelock House, No. 20 Pedder Street, Central Hong Kong. ================= I N D O N E S I A ================= ASTRA INTERNATIONAL: Unit's Debt Plan Needs 100% Acceptance ----------------------------------------------------------- Astra International urged its subsidiary PT United Tractors Tbk's creditors to accept the latter's restructuring proposal, claiming the unit has a bright future. "If the negotiation with each creditor finished, certainly UT will able to finish the second credit restructure," Bisnis Indonesia quoted Budi Setiadhama, President Director of PT Astra international, as saying recently. The subsidiary is seeking 100% approval from its creditors to restructure its loans. Recently, a steering committee consisting of five creditors approved the unit's repayment schedule totaling US$268 million for Facility I and II. Under the terms of the debt restructure the due date was extended to 2008 with a 2-year extension, AFX-Asia said in a separate story. ========= J A P A N ========= COSMO OIL: JCR Downgrades Bonds/CP to BBB/J-2 --------------------------------------------- Japan Credit Rating Agency (JCR) has downgraded the ratings on the shelf registration, bonds and CP program of Cosmo Oil Company Limited from preliminary BBB+, BBB+ and J-1 to preliminary BBB, BBB and J-2, respectively. Shelf Registration: Maximum: Y100 billion Valid: two years from April 27, 2003 Issues / Amount (bn) / Issue Date / Due Date / Coupon Convertible Bonds no.3 / Y30 / Mar. 17, 1994 / Mar. 31, 2005 / 1.10% Bonds no.2 / Y10 / June 25, 1997 / June 25, 2007 / 3.30% Bonds no.3 / Y10 / Aug. 8, 1997 / Aug. 8, 2007 / 3.15% Bonds no.6 / Y5 / Sept. 8, 1999 / Sept. 8, 2004 / 3.08% Bonds no.7 / Y5 / Sept. 20, 1999 / Sept. 20, 2005 / 3.50% Bonds no.8 / Y5 / Nov. 18, 1999 / Nov. 18, 2005 / 3.10% Bonds no.9 / Y5 / Nov. 25, 1999 / Nov. 25, 2003 / 2.34% Bonds no.10 / Y5 / Nov. 25, 1999 / Nov. 25, 2004 / 2.70% Bonds no.11 / Y5 / Feb. 16, 2000 / Feb. 16, 2006 / 3.00% Bonds no.12 / Y5 / Feb. 25, 2000 / Feb. 25, 2004 / 2.45% Bonds no.13 / Y5 / Feb. 25, 2000 / Feb. 25, 2005 / 2.83% Bonds no.14 / Y5 / Mar. 7, 2000 / Mar. 7, 2006 / 3.05% Bonds no.15 / Y5 / Mar. 28, 2000 / Mar. 28, 2005 / 2.86% Bonds no.16 / Y5 / May 19, 2000 / May 19, 2004 / 2.50% Bonds no.17 / Y5 / May 24, 2000 / May 24, 2005 / 2.84% CP: Maximum: Y100 billion Backup Line: 0% RATIONALE: Cosmo Oil's earnings excluding the effects of inventory valuation dropped sharply for fiscal 2002 in the midst of severe business environment where margins shrunk rapidly. The drop was larger than those of peers. The performance since the beginning of fiscal 2003 has been going as estimated at the beginning of the fiscal year. However, there remains uncertainty over difficulty in passing of increase in costs on to the prices and the resulting instability of margins. On the other hand, the excess interest-bearing debt has not been cut well due to failure of asset disposal. Cosmo Oil plans to make capital expenditures that exceed the depreciation in the future. Thus, it is unlikely that the financial structure will improve rapidly. If the operating cash flows decrease, the financial ratios may deteriorate. JCR downgraded the rating for Cosmo Oil, taking into account the severe business environment and delay in its improvement in the earnings and financial structure. DAIEI INC.: Plans Equity Swap for Hawks --------------------------------------- Daiei Inc. plans to conduct a debt-for-equity swap deal worth 6 billion yen for its loans to its Fukuoka Daiei Hawks professional baseball club to improve its financial status, according to Kyodo News. After receiving an approval from the Professional Baseball Organization of Japan and other institutions involved, Daiei's equity stake in the club will increase to 98 percent from 60 percent, while the stake of Tadashi Nakauchi, the owner of the Pacific League club, is expected to drop to around 2 percent from 40 percent. HITACHI LIMITED: Reorganizes Chip-Manufacturing Units ----------------------------------------------------- Hitachi, Ltd. (President, Chief Executive Officer and Director, Etsuhiko Shoyama), Hitachi High-Technologies Corporation (President, Chief Executive Officer and Director, Masaaki Hayashi) and Hitachi Electronics Engineering Co., Ltd. (President and Director, Kunio Hasegawa) have announced that Hitachi High- Technologies will acquire all shares in Hitachi Electronics Engineering owned by Hitachi, Ltd. The acquisition, designed to strengthen the semiconductor related process manufacturing systems business of the Hitachi Group, is planned to take place in spring, 2004. The Hitachi Group is pushing ahead with the restructuring of its business portfolio based on its medium-term management plan, the "i.e. Hitachi Plan II", a three-year plan ending in fiscal 2005 aimed at pushing through major reforms of its operating framework and focusing on highly profitable businesses. Hitachi, Ltd. is realigning its business portfolio by exiting and restructuring certain businesses and expanding targeted business domains. The semiconductor production and inspection systems business is one of the company's core businesses under this plan. Until now, this business has been divided within the Hitachi Group. Hitachi High-Technologies is engaged in production and marketing of semiconductor process manufacturing, inspection, and evaluation systems, while Hitachi Electronics Engineering has also been involved in the production and marketing of inspection systems for the semiconductor manufacturing process, with affiliated companies taking responsibility for service, etc. However, the need for greater flexibility in the current market environment has led to plans to integrate semiconductor manufacturing and inspection system-related management resources in an effort to strengthen the business structure and improve management efficiency of the Hitachi Group as a whole. Hitachi Electronics Engineering will be renamed Hitachi High- Tech Electronics Engineering Co., Ltd. (tentative). As a member of the Hitachi High-Technologies group, the company will benefit from the synergy between the technological and sales capabilities of Hitachi High-Technologies and the product development expertise built up by Hitachi Electronics Engineering over many years, paving the way for the introduction of superior products onto the market and expansion of the group's business. Under the new organization, semiconductor testing and inspection systems, LCD manufacturing and inspection systems, and HD manufacturing and inspection systems etc. will be marketed as in-house products of the Hitachi High- Technologies group. Regarding the four consolidated subsidiaries of Hitachi Electronics Engineering, a portion of operations will be reorganized into subsidiaries of Hitachi High-Technologies, while others will continue to provide manufacturing, sales and service support as Hitachi Electronics Engineering subsidiaries. A thorough review of Hitachi Electronics Engineering operations will be conducted by an independent third party before the transfer of control takes place, to determine the time and means by which Hitachi Electronics Engineering shares held by Hitachi, Ltd. will be transferred to Hitachi High-Technologies. OVERVIEW OF HITACHI ELECTRONICS ENGINEERING Company name: Hitachi Electronics Engineering Co., Ltd. Representative: President and Director, Kunio Hasegawa Main place of business: 16-3 Higashi 3-chome, Shibuya-ku, Tokyo Date of establishment: February 11, 1965 Settlement of accounts: March 31 each year Capital: 4 billion yen Number of shares issued: 30 million Share ownership: Hitachi, Ltd. (100%) Sales: FY 2001 43.2 billion yen, FY 2002 42.2 billion yen (consolidated) Net profit for the period: FY2001 15.3 billion yen, FY2002 3.3 billion yen (consolidated) Total assets: 42.9 billion yen (consolidated, as of March 31, 2003) Number of employees: 1,629 (consolidated, as of March 31, 2003) Main business activities: Manufacturing, sales and service of semiconductor testing/inspection systems, LCD manufacturing/inspection systems, HD manufacturing/inspection systems etc. Locations: Headquarters, Shonan Business Group, Saitama Business Group, Kansai Sales Office, Kyushu Sales Office Consolidated subsidiaries: Hitachi D.E. Technology Co., Ltd., and 3 other companies OVERVIEW OF HITACHI HIGH-TECHNOLOGIES Company name: Hitachi High Technologies Corporation Main place of business: 24-14 Nishi-Shimbashi 1-chome, Minato- ku, Tokyo Representative: President, Chief Executive Officer and Director, Masaaki Hayashi Code no.: 8036 (listed in Tokyo and Osaka Stock Exchange) Capital: 7.9 billion yen Number of employees: 8,187 (consolidated, as of March 31, 2003) Sales: 778.2 billion yen (consolidated, as of March 31, 2003) Main business activities: Production and marketing of Electronic Device Systems and Life Science products, Information Electronics, and Advanced Industrial Products Projected effect of reorganization on Hitachi High-Technologies' consolidated performance (unit: 100 million yen/year) year ending year ending 3/31/2005 3/31/2006 ------------------------------------------------------------- Consolidated sales 400 410 Consolidated income before income taxes 5 10 ------------------------------------------------------------- OVERVIEW OF HITACHI Company name: Hitachi, Ltd. Representative: President, Chief Executive Officer and Director, Etsuhiko Shoyama Main place of business: 6, Kanda-Surugadai, 4-chome, Chiyoda-ku, Tokyo Date of establishment: February 1, 1920 (Instigated in 1910) Settlement of accounts: March 31 each year Code no.: 6501 (listed in Tokyo, Osaka, Nagoya, Fukuoka, and Sapporo Stock Exchange) HIT (listed in New York Stock Exchange) Capital: 282.0 billion yen Number of employees: 339,572 (consolidated, as of March 31, 2003) Sales: 8,191.7 billion yen (consolidated, as of March 31, 2003) Main business activities: Offering a wide range of systems, products and services in market sectors, including information systems, electronic devices, power and industrial systems, consumer products, materials and financial services CONTACT: Hitachi, Ltd. Machiko Ikenoya, Atsushi Konno, Public Relations, Corporate Communications Division 3-3258-2056 (direct) PR@hdq.hitachi.co.jp or Hitachi High-Technologies Corporation Tatsuya Akutagawa, Toshiyuki Matsuo, General Affairs Department, Personnel & General Affairs Division 3-3504-5138 (direct) ir@nst.hitachi-hitec.com or Hitachi Electronics Engineering Co., Ltd. Koichi Tajima, Ryoji Hikosaka, Shizuka Wada, Corporate Personnel & Administration Department 3-5467-1160 (direct) web@aa.hitachi-deco.co.jp NIKKO CORDIAL: Purchases Convertible Bonds from Citigroup --------------------------------------------------------- On October 20, 2003, Nikko Cordial Corporation (Nikko) has agreed to purchase from Citigroup Inc. (Citigroup) Nikko convertible bonds held by Citigroup in the principal amount of 47.6 billion yen for a price of 73.4 billion yen. In June 1998, Nikko and Citigroup formed an alliance under which Nikko issued to Citigroup 154,181,090 ordinary shares and convertible bonds in the principal amount of JPY150 billion. In March 2000, Citigroup and Nikko agreed that Citigroup would convert a portion of the convertible bonds into ordinary shares, raising its holdings to above 20 percent, and that Citigroup would gradually sell the remaining bonds. Citigroup's shareholding level in Nikko of 20.83 percent is not affected by today's transaction. Fulfilling the March 2000 agreement, the purchase by Nikko of the remaining convertible bonds held by Citigroup will reduce Nikko's future interest obligations and will eliminate the possible dilutive effect of the convertible bonds on Nikko's shares. In addition to Citigroup's shareholding in Nikko, the two firms continue to work in partnership through Nikko Citigroup Limited and NikkoCiti Trust and Banking Corporation joint ventures. Deryck C. Maughan, Chairman and CEO of Citigroup International, said, "The Japanese market is very important to Citigroup. Citigroup will continue to grow its business in Japan, and will work with Nikko to explore other new business opportunities, including restructuring and private equity fund opportunities." Junichi Arimura, President and Co-CEO of Nikko, said, "The alliance with Citigroup, mainly in the area of the wholesale securities business through Nikko Citigroup Ltd., has exceeded all expectations. Citigroup's commitment to Japan is strong, and I wish to further explore business opportunities in growth areas based upon the relationship of mutual trust between our two companies." DETAILS OF THE CONVERTIBLE BONDS TO BE PURCHASED ARE AS FOLLOWS: Name: #16 Unsecured Convertible Bonds Coupon: 1.2 percent Maturity: March 31, 2008 Outstanding Balance: JPY47.6 billion Conversion Price: JPY447 Moody's Investors Service recently revised to stable from negative the rating outlook of Nikko Cordial Securities' (NCS) Baa2 senior unsecured debt rating and Prime-2 commercial paper rating and Nikko Cordial Corporation's (NCC) Baa3 senior unsecured debt rating and issuer rating. The revision of NCS' rating outlook reflects Moody's view that the pace of deterioration in its core earnings has begun to stabilize. While NCS may face medium-term earnings pressure from the ongoing weak state of retail money inflows into the capital market, Moody's expects the Company to achieve decent earnings through its introduction of a flexible compensation structure in an effective and timely manner. In fact, NCS has implemented substantial reduction in personnel costs in FYE3/03. NISSAN MOTOR: Slashes Domestic Firms to 100 ------------------------------------------- Nissan Motor Co. plans to reduce the number of domestic sales companies from the current 170 to around 100 as part of the rationalization of its sales structure and cut costs, the Nihon Keizai Shimbun reported Saturday. Nissan plans to boost domestic sales, the final undertaking of its structural reforms under President Carlos Ghosn. The latest reorganization plan comes after Nissan reduced the number of its domestic companies, which stood at around 200 in 1999, by about 30 as part of a restructuring plan that streamlined its dealerships into Blue Stage companies, mainly dealing in luxury cars, and Red Stage companies, that mainly handle sports cars. RESONA HOLDINGS: Solicits Early Retirements ------------------------------------------- Resona Holdings Inc. aims to solicit early retirements after next January to accelerate its business-restructuring program, Kyodo News reports. By the end of next March, the troubled banking group will reduce its overall workforce by about 2,700 personnel - about 14 percent of that at the end of March this year - including 1,500 jobs through early retirements. SUZUTAN CO.: Unveils Rehabilitation Scheme ------------------------------------------ Suzutan Co. plans to rehabilitate itself by coming under supermarket chain store operator Uny Co and seeking debt-waivers totaling 5.7 billion yen, Kyodo News reports. The struggling women's wear retailer will issue new shares worth 1.5 billion yen next February for purchase by Uny, which is based in Inazawa in the same Aichi Prefecture. TOSHIBA CORPORATION: Selling Stocks in Subsidiary ------------------------------------------------- Toshiba Corporation has decided to sell a part of its owned stocks of Shibaura Mechatronics Corporation (Headquarters: Yokohama City, Kanagawa, President: Hiroo Okuhara, Stock Code: 6590), Japan-based subsidiary Company of Toshiba Corporation in November 2003. 1. Number of Stock to be sold by Toshiba Corporation: 4,500,000 * * equals 8.99 percent of total outstanding stocks issued by Shibaura Mechatronics. Toshiba's share of Shibaura Mechatronics' stocks is expected to decrease from the current 46.92 percent to 37.93 percent after the sellout. We plan to sell Shibaura Mechatronics' stocks, giving consideration to the impact of such sellout to the stock market. 2. Reason for the Sellout, etc: Toshiba plans to sell the stocks as part of its efforts to reduce the Company's liabilities. Toshiba's sellout will also result in improvement of distribution of Shibaura's stocks, and disclosure of Shibaura Mechatronics to unaffiliated parties for marketable stocks. The plan was mutually agreed between the two companies concerned. 3. Timing of the Sellout: November 2003 Contact for the press: Corporate Communications Office: 81-(0)-3-3457-2105 TOSHIBA CORPORATION: Unveils 1H03 Financial Results --------------------------------------------------- Toshiba Corporation announced Friday its consolidated and non- consolidated results for the first half (April-September) of fiscal year (FY) 2003. 1) Overview of Consolidated and Non-consolidated Results for First Half of FY 2003 CONSOLIDATED RESULTS Toshiba's overall consolidated sales were 2,608.3 billion yen (US$23,498 million), a decrease of 26.7 billion yen from the same period of the previous year. Of this decline, approximately 90 billion yen was attributable to transfers of businesses from the parent Company, including the cathode-ray tube and the power transmission and distribution businesses. If the results of the transferred businesses were consolidated, net sales would actually have increased by approximately 65 billion yen. Consolidated operating income (loss) declined by 14.9 billion yen from a year earlier to minus 12 billion yen (minus US$108 million). Electronic Devices raised operating income against the year-earlier period, largely on the strength of the semiconductor business, while Social Infrastructure also improved operating income (loss) from a year earlier. However, operating income for Digital Products and Home Appliances saw lower operating income (loss). Income (loss) before income taxes, minority interest and equity in earnings of affiliates improved by 26.2 billion yen from the year-earlier period to minus 17.6 billion yen (minus US$159 million), mainly as a result of sales of securities. Net income (loss) declined by 5.8 billion yen from the same period of the previous year to minus 32.2 billion yen (minus US$290 million). The decline includes an increase in income tax from a year earlier. NON-CONSOLIDATED RESULTS Non-consolidated sales declined by 6 percent from the same period of the previous year to 1,459.6 billion yen (US$13,149 million). Recurring profit (loss) improved by 8.4 billion yen from the year-earlier period to minus 14 billion yen (minus US$126 million). Net income (loss) was minus 2.5 billion yen (minus US$22 million), down by 49.6 billion yen from a year earlier. This decline reflects last year's extraordinary gain from the transfer of Toshiba's employee pension fund to the government. 2) FY2003 First Half Consolidated Results by Industry Segment billion yen Net Sales Operating Income (loss) Change (%) Change Digital Products 956.8 -4% -28.2 -37.5 Electronic Devices 627.5 -1% 26.6 +20.7 Social Infrastructure 730.0 -4% -15.1 +5.9 Home Appliances 313.5 -2% -4.7 -7.2 Others 252.8 +9% 9.2 +2.8 Elimination -272.3 - 0.2 - Total 2,608.3 -1% -12.0 -14.9 DIGITAL PRODUCTS Sales and operating income (loss) of Digital Products decreased against the same period of the previous year, on lower sales from personal computers and televisions. Sales of personal computers declined from the same period a year ago, largely as a result of severe price erosion, and despite increased unit sales both in Japan and overseas. Television sets also saw lower sales. North American sales of projection televisions were sluggish, and domestic sales declined in a market starting to shift from picture tubes to flat panel displays. Falling sales in the North American market produced a decline in sales of cellular phones, despite increased sales in Japan of cellular phones with cameras. ELECTRONIC DEVICES Operating income of Electronic Devices increased from the year earlier period, largely on the strength of the semiconductor business and improved performance in the LCD business. Net sales of Electronic Devices were flat compared to the same period a year ago, reflecting the transfer of the cathode-ray tube business to a joint venture with Matsushita Electric Industrial Co., Ltd. Semiconductor sales increased from the same period a year ago, on the strength of continued healthy demand for NAND flash memory and growing demand for multi-chip package (MCP) memories for cellular phones. Sales of LCDs also increased, thanks to growth in the area of Toshiba's main product focus, small-to medium-sized, high-resolution low temperature polysilicon LCDs. SOCIAL INFRASTRUCTURE Social Infrastructure saw sales decline from the same period of the previous year, but operating income (loss) improved on higher profitability in the e-Solutions business. Sales and operating income (loss) of Industrial and Power Systems & Services decreased against the same period a year ago. Nuclear power plant business and transportation systems business saw higher sales, but sales of thermal power plant in North America were lower. The net sales decline also reflected the transfer of the power transmission and distribution business from the parent Company to TM T&D Corporation, a joint venture with Mitsubishi Electric Corporation. e-Solutions businesses increased sales from the year-earlier period, through growth in its package-type solutions business and increased sales of optical character readers. HOME APPLIANCES Sales and operating income (loss) declined, largely as a result of sluggish consumer spending and lower sales of air- conditioners in Japan's unusually short, cool summer. 3) PROJECTIONS FOR FY2003 Economic conditions in the second half of FY2003 are expected to continue an upward trend as domestic corporate capital expenditure firms up and the U.S. economy shows steady recovery. However global deflation will continue, and Toshiba anticipates continued uncertainty in the overall business environment. Consolidated and non-consolidated projections for FY2003 are shown below. Consolidated (Unit: billion yen) FY2003 Change from FY2002 Forecast Net sales 5,650 0 percent Operating income (loss) 140 +24.5 Income (loss) before taxes 90 +36.9 Net income (loss) 25 +6.5 Non-Consolidated (Unit: billion yen) FY2003 Forecast Change from FY2002 Net sales 3,020 -11 percent Recurring profit (loss) 40 -3.3 Net income (loss) 25 -58.3 FY2003 Forecast by Industry Segment Forecasts for consolidated net sales and operating income (loss) for FY2003 are shown below. (Unit: billion yen) Net Sales Operating Income (Loss) FY2003 Change from FY2003 Change from Forecast FY2002 FY2002 Forecast Digital Products 2,070 0% -22 -46.8 Electronic Devices 1,280 0% 75 +43.1 Social Infrastructure 1,780 -2% 56 +16.8 Home Appliances 640 +1% 8 +3.9 Others 510 +4% 23 +7.5 Elimination -630 - - - TOTAL 5,650 0% 140 +24.5 DIGITAL PRODUCTS Operating income (loss) will decline from the year-earlier period, largely as a result of price erosion in personal computers and lower sales of televisions in North America. ELECTRONIC DEVICES The semiconductor business will see a continued increase in operating income. The operating loss in the LCD business is now expected to improve. SOCIAL INFRASTRUCTURE Operating income is expected to increase as businesses of nuclear power plant, transportation systems, medical systems, and network systems see steady growth. HOME APPLIANCES Operating income is expected to increase on a series of new product launches and expanded sales in Asian market. 4) Projected Dividend Toshiba has cancelled its interim dividend. The full-term dividend will be determined in due course. 5) FINANCIAL POSITION - CASH FLOWS FOR FY2003 Total assets decreased by 191.1 billion yen from a year earlier to 5,047.8 billion yen (US$45,476 million). While this reflects a seasonal tendency at Toshiba, it is also due to continued efforts to lighten assets. The decline in total assets helped to reduce total debt by 42.6 billion yen. Cash flow from operating activities of 126.5 billion yen (US$1,139 million) and cash flow from investment activities of minus 107.7 billion yen (minus US$970 million) produced a free cash flow of 18.8 billion yen, a decrease by 27.2 billion yen from the same period in the previous year. The decline reflects one-time revenue from sales of DRAM manufacturing equipment during the previous term and effective use of leaseback. Toshiba will reinforce cash flow management and continue to achieve positive results. TREND OF CASH FLOW INDEX FY01 first FY01 FY02 first FY02 FY03 first half half half Equity ratio (%) 16.4 13.0 12.6 10.9 10.5 Equity ratio based on market value (%) 27.6 33.6 23.2 19.2 29.9 Debt redemption years (year) 7.7 12.1 11.7 6.4 6.5 Interest coverage ratio 5.4 3.8 4.8 8.5 9.1 Formula: Equity ratio: shareholders' equity/total assets Equity ratio based on market value: market value of shareholders' equity*/total assets * Market value of shareholders' equity is calculated as the (closing stock value at the end of a fiscal period) x (number of shares authorized at the end of a fiscal period without treasury stock) Debt redemption years: total debt, average value at the beginning and the end of a fiscal period / net cash provided by operating activities Interest coverage ratio: net cash provided by operating activities / interest payment 6) EXCHANGE RATES Projections for the second half of FY2003 are based on exchange rates of 115 yen to the US dollar and 130 yen to the Euro. TOSHIBA CORPORATION: Shares Down 5.2% After Profit Forecast ----------------------------------------------------------- Shares of Toshiba Corporation fell as much as 5.2 percent after slashing its annual profit forecast by 29 percent, according to Bloomberg. The Company fell 5 percent to 454 yen as of 9:33 a.m. in Tokyo Stock Exchange trading after earlier changing hands at 453. For the three months ended September 30, Toshiba's net income totaled 4.67 billion yen, compared with a net loss of 7.61 billion yen a year earlier. Sales rose to 1.49 trillion yen from 1.44 trillion yen. ========= K O R E A ========= HANARO TELECOM: Winning Consortium Launches Financing ----------------------------------------------------- The consortium led by American International Group (AIG) of the United States has emerged victorious in its bid to acquire a 39.6 percent stake in Hanaro Telecom, according to Finance Asia. The total financing package amounts to US$1.1 billion and will consist of a US$500 million equity injection from AIG and Newbridge Capital as well as a US$600 million loan. LG Group lost out as it aimed to add to its existing 18 percent holding after offering US$634 million for a 51 percent stake in the internet service provider. The Korean Chaebol teamed up with U.S. private equity fund Carlyle and was to be backed by Citigroup. KOLON INDUSTRIES: Unveils Restructuring Scheme ---------------------------------------------- Chemical fiber maker Kolon Industries Inc. aims to reduce its textile business and expand its non-textile business in order to attain a sales target of 1.9 trillion won (US$1.6 billion) in 2006, as part of its restructuring scheme, according to Asia Pulse on Monday. Kolon sold a total of 1.23 trillion won last year. The firm unveiled its plan in a six-day investor relation tour that began on October 27 in Southeast Asian regions, such as Hong Kong and Singapore. KOOKMIN BANK: 2003 Third Quarter Results ---------------------------------------- On October 24, 2003, Kookmin Bank held an earnings conference and released its operating results for the third quarter of 2003. Followings are the key figures released during the conference, and full presentation material is available at Kookmin Bank website (www.kbstar.com) for further information. The figures presented in this section have not been fully reviewed by our independent auditor yet, and therefore they may be subject to changes in the due course of review process. 1. FINANCIAL HIGHLIGHTS 1.1 Balance sheet figures As of the date indicated (tn Won) Sep. 30, 2003 Dec. 31, 2002 percent Change (YTD) Total Assets 190.2 171.5 10.9 Loans in Won 124.7 116.4 7.1 Total Liabilities 180.1 161.5 11.5 Deposits in Won 131.2 125.2 4.8 Total Stockholders' Equity 10.1 10.0 1.0 1.2 OPERATING RESULTS For the 9 month periods ended September 30 (bn Won) 2003 2002 percent Change (YoY) Operating Income 478.2 1,988.3 (DELTA)75.9 Operating Income before Provisioning 3,191.8 2,947.0 8.3 Non-operating Income (DELTA)1,214.9 197.9 N.A Net Income (DELTA)382.1 1,512.9 N.A 2. KEY FINANCIAL INDICATORS - NIS (cumulative): 3.74 percent - NIM (cumulative): 3.26 percent - Return on assets (annualized): (DELTA)0.21 percent . Return on equity (annualized): (DELTA)3.32 percent 3. ASSET QUALITY As of the date indicated (bn Won) Sep. 30, 2003 Dec. 31, 2002 % Change (YTD Total Loan for NPL Management 144,020.5 132,178.2 9.0 Allowance for Loan Losses 4,572.1 2,498.3 83.0 Substandard & Below Ratio 4.84% 2.89% 1.95% Coverage Ratio 65.6% 65.4% 0.2% Delinquency Ratio 3.49% 2.84% 0.65% Meanwhile, Reuters reported that Kookmin Bank posted losses of 1.4 trillion won (US$1.18 billion) after its merger with its troubled credit card unit Kookmin Credit Card, citing Kookmin Chief Financial Officer Yoon Jong-kyoo. KOREA THRUNET: Submits Restructuring Plan ----------------------------------------- Embattled broadband operator Korea Thrunet has submitted a restructuring plan with the bankruptcy court in Seoul, the Korea Times reports. If the plan is approved, the Company will soon begin a second tender to sell its entire stake, according to Thrunet spokesman Song Bo-young. Thrunet, which has been de-listed from the U.S. tech-heavy Nasdaq stock market, has 1.29 million broadband Internet customers for an 11.3 percent market share as of the end of September. In March 2003, Thrunet filed a voluntary petition for court receivership with the bankruptcy court in Seoul citing its debt burden. At that time, Thrunet was saddled with total liabilities of 810 billion won ($682.3 million). SK NETWORKS: Young Wha Struggles to Avoid Suits ----------------------------------------------- Young Wha Corporation, the auditor of SK Networks (formerly SK Global) has asked the firm's creditor banks to choose not to file damage claims, the Korea Times reports. The move comes as Young Wha faces a closedown of its business resulting from the fact that creditor banks have decided to file a class action damage claim against the accounting firm. According to TCR-AP, creditor banks 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. SSANGYONG CORPORATION: Creditors Conduct Debt-Equity Swap --------------------------------------------------------- Creditors of Ssangyong Corporation will convert 121.4 billion won (US$102.46 million) worth of loans into equity to normalize the troubled trading Company, according to Asia Pulse. The creditors, however, failed to unveil when the debt-equity conversion would be carried out. Under the plan, the Company will reduce its equity capital by 80 percent and raise 46 billion won in cash by selling assets and real estate. Through the implementation of the program, Ssangyong hopes to cut its debt to 68.5 billion won from the present 138.2 billion won by year-end, lowering its debt-equity ratio to 324 percent from 994 percent. Ssangyong Corporation engages in trading and of coal and petroleum products, iron, steel, metals, machinery, chemicals, cement and electric and electronic products. The Group operates 1 head office, 3 factories, 8 domestic branches, and 8 overseas branches. =============== M A L A Y S I A =============== KSU HOLDINGS: KSE Issues Public Reprimand ----------------------------------------- Kuala Lumpur Stock Exchange (KLSE) in consultation with the Securities Commission publicly reprimanded KSU Holdings Berhad (KSU) for breach of, Paragraph 9.16 (1) (a) of the Listing Requirements (LR). Paragraph 9.16 (1) (a) of the LR states that the content of a press or other public announcement is as important as its timing. A listed issuer must ensure that each announcement is factual, clear, unambiguous, accurate, and contains sufficient information to enable investors to make informed investment decisions. The Exchange finds the Company to be in breach of Paragraph 9.16 (1) (a) of the LR for omitting to disclose in the Company's announcement dated 5 March 2003 the fact that the injunction granted was an ex-parte injunction, which would lapse upon the expiry of 21 days from the date of the Court Order dated 3 March 2003. The public reprimand was imposed pursuant to Paragraph 16.17 of the LR after taking into consideration all the relevant facts and circumstances of the matter and after consultation with the Securities Commission. The Exchange views this contravention seriously and hereby cautions KSU and its Board of Directors on their responsibility to maintain appropriate standards of corporate responsibility and accountability in order to achieve greater disclosure and transparency to its shareholders and the investing public. PREVIOUS PUBLIC REPRIMANDS 1. On 10 May 2003, KSU was publicly reprimanded and fined RM57,000 for breach of Paragraph 9.22 (1) of the LR for failing to give to the Exchange for public release, its interim financial report for the financial period ended 30 September 2002 within the time frame stipulated. 2. On 24 May 2003, KSU was publicly reprimanded for breach of Paragraph 9.19(19) of the LR for failing to make an immediate announcement to the Exchange when a winding up petition was served on Kumpulan Sepang Sdn Bhd (KSUSB), a wholly owned subsidiary of KSU, on 18 November 2002 by Kien Hwa Landscape Sdn Bhd for a claim of RM142,810.59, being the amount owing for landscape works and maintenance services provided to KSUSB. The announcement in respect of the winding up petition was only made by KSU to the Exchange for public release on 3 December 2002, after a delay of eleven (11) market days. 3. On 26 July 2003, KSU was publicly reprimanded for breach of Paragraphs 9.03 and 9.04(l) of the LR and Paragraph 2.1(1)(d) of PN1/2001 for failing to make an immediate announcement to the Exchange when its subsidiary, Kumpulan Sepang Utama Sdn Bhd defaulted in its repayment of the Term Loan and Bridging Loan Facilities granted by Malaysia Building Society Berhad since June 1999. The announcement in relation to the default of payment of the MBSB Facilities by KSUSB was only made on 29 November 2002, after a delay of 6.5 months from the date KSU assumed the listing status of May Plastics Industries Berhad on 10 May 2002. PUBLIC REPRIMAND KSU HOLDINGS BERHAD Breach of Paragraph 9.16 (1) (a) of the Listing Requirements (1) In consultation with the Securities Commission, KLSE hereby publicly reprimands KSU Holdings Berhad (KSU) for breach of Paragraph 9.16 (1) (a) of the Listing Requirements (LR). (2) Paragraph 9.16 (1) (a) of the LR states that the content of a press or other public announcement is as important as its timing. A listed issuer must ensure that each announcement is factual, clear, unambiguous, accurate, and succinct and contains sufficient information to enable investors to make informed investment decisions. (3) The Exchange finds the Company to be in breach of Paragraph 9.16 (1) (a) of the LR for omitting to disclose in the Company's announcement dated 5 March 2003 the fact that the injunction granted was an ex-parte injunction, which would lapse upon the expiry of 21 days from the date of the Court Order dated 3 March 2003. (4) The public reprimand was imposed pursuant to Paragraph 16.17 of the LR after taking into consideration all the relevant facts and circumstances of the matter and after consultation with the Securities Commission. (5) The Exchange views this contravention seriously and hereby cautions KSU and its Board of Directors on their responsibility to maintain appropriate standards of corporate responsibility and accountability in order to achieve greater disclosure and transparency to its shareholders and the investing public. MAXIS COMMUNICATIONS: Reorganization Takes Effect November 1 ------------------------------------------------------------ Further to the announcements made on 8 August 2003, 29 September 2003 and 13 October 2003, the Board of Directors of Maxis announced that all the conditions precedent as specified in the Reconstruction Agreements dated 8 August 2003 have been fulfilled or waived, including those relating to Ministry of Finance and Lenders of Maxis and its subsidiaries, in accordance with the terms of the Reconstruction Agreements. As a result the Proposed Reorganization will be effective from 1st November 2003. NCK CORPORATION: Unit Enters Alliance With Swissplex Sdn -------------------------------------------------------- NCK Corporation Berhad (NCK) (Special Administrators Appointed) announce dthat its subsidiary, Perumahan NCK Sdn Bhd (PNCK), had on 27 October 2003 entered into a Sale and Purchase Agreement (SPA) with Swissplex Sdn Bhd (the Purchaser) for the proposed disposal of a piece of leasehold land zoned for agricultural use held H.S. (M) 2082 P.T. No. 3609 situated in the Mukim of Sungai Buluh, District of Petaling, State of Selangor Darul Ehsan measuring approximately 6 acre 1 rood 12 pole (the Property) for a cash consideration of RM867,790. 2. DETAILS OF THE PROPOSED DISPOSAL 2.1 Description of the Land The principal activity of PNCK is contractors and PNCK is the registered and beneficial owner of the Property zoned for agricultural use held H.S. (M) 2082 P.T. No. 3609 situated in the Mukim of Sungai Buluh, District of Petaling, State of Selangor Darul Ehsan measuring approximately 6 acre 1 rood 12 pole. The Property was purchased from Mr Lim San Swee (NRIC No. 301109-10-5017) at RM555,000 as per the Sale and Purchase Agreement dated 15 September 1994. There is an estimated gains of RM312,790 upon completion of the sale . The Property has lease tenure of 99 years, which will expire on 25 July 2071. The Property is charged to the Chargee, RHB Bank Berhad as security for loan/facility granted by the Chargee to PNCK. The Land is not subject to interest restriction. 2.2 Basis for Arriving at the Sale Consideration The sale consideration for the Proposed Disposal was arrived at on a willing buyer - willing seller basis after taking into account the Directors' opinion on the current market value of the Land and valuation undertaken on the Land by the independent valuer - Henry Butcher, Lim & Long Sdn Bhd. The valuation report dated 15 November 2000 states that the open market value of the Land is RM1,100,000. The sale consideration of RM867,790 represents:- a) a discount of RM232,210 or 21% below the open market value RM1,100,000.00; b) a gain of RM315,980 or 57% above the audited net book value of the land of RM551,810 as a 30 June 2003. 2.3 Liabilities to be Assumed The Purchaser will not assume any of PNCK's liabilities pursuant to the Proposed Disposal. 3. SALIENT TERMS OF THE AGREEMENT AND VALUATION REPORT The salient terms of the Agreement are as follows:- a) The Purchaser has to pay an initial deposit of RM86,779 representing 10% of the sale consideration to PNCK's solicitors as stakeholders upon execution of the Agreement. b) The balance of RM781,011 being 90% of the sale consideration, is to be paid within three (3) months from the date of the SPA The salient terms of the Valuation Report is comparison method was adopted to value the Property at the Open Market Value of RM1,100,000 and Forced Sale Value of RM825,000. 4. UTILISATION OF PROCEEDS RAISED FROM THE PROPOSED DISPOSAL The proceeds will be used to redeem the title from the Chargee, RHB Bank Bhd, thus reducing the indebtedness of PNCK and NCK. 5. RATIONALE FOR THE PROPOSED DISPOSAL As the Property is not a major fixed asset of PNCK and its disposal will not affect the smooth operation of PNCK, the Board Of Directors has decided to dispose of the Property to generate cashflow to repay indebtedness of PNCK, 6. EFFECTS OF THE PROPOSED DISPOSAL 6.1 Share Capital The Proposed Disposal will not have any effect on the issued and paid-up share capital of NCK. 6.2 Earnings The proposed disposal will reduce the accumulated losses of NCK Group by approximately RM312,790. 6.3 Net Tangible Assets / Liabilities Per Share The Proposed Disposal will reduce the net tangible liability per share of NCK by RM0.0084. 6.4 Substantial Shareholdings The Proposed Disposal will not have any effect on the substantial shareholdings of PNCK as it does not involve transfer of shares. 7. CONDITIONS OF THE PROPOSED DISPOSAL The Proposed Disposal is not subject to the approval of shareholders of NCK and the relevant government authorities. 8. INFORMATION ON THE PURCHASER The Purchaser is Swissplex Sdn Bhd (Company No. 586587-H), a company incorporated in Malaysia and having itts registered address at No. 11-3, Lorong 6C/91, Taman Shamelin Perkasa, Batu 3 1/2, Jalan Cheras, 56100 Kuala Lumpur. 9. DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTEREST None of the Directors, substantial shareholders of PNCK or persons connnected with them has any interest, direct or indirect, in the Proposed Disposal. 10. ESTIMATED TIME FRAME OF COMPLETION The Proposed Disposal is estimated to be completed within 3 months from the date of the SPA. 11. DIRECTORS' RECOMMENDATION The BOD, after careful deliberation on the Proposed Disposal, is of the opinion that the Proposed Disposal is in the best interest of PNCK. 12. DOCUMENTS FOR INSPECTION The following documents are available for inspection at the Registered Office at 2nd Floor, Units No. 6, 8, 10, 12, Jalan 2/109E, Jalan Desa, Taman Desa, Off Jalan Klang Lama, 58100 Kuala Lumpur from Mondays to Fridays (expect Public Holidays) during normal business hours from the date of this announcement until the date of the completion date. a) Sale and Purchase Agreement dated 27 October 2003 between PNCK and Swissplex Sdn Bhd. b) Valuation Report dated 15 November 2000 from Henry Butcher, Lim & Long Sdn Bhd. OCEAN CAPITAL: Clarifies Winding Up Petition Report --------------------------------------------------- Ocean Capital Berhad refers to the query from the Kuala Lumpur Stock Exchange letter dated 23 October 2003 on the above matter. 1. INTEREST RATE ON THE AMOUNT CLAIMED. The petitioner is claiming for the total debt of RM93,994.84 from Ocean Subsidiaries for supply of merchandise stock and there is no interest rate as the claimed amount does not include any interest costs. 2. 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 total claim of RM93,944.84 by Pan creative Sdn Bhd is for the debt due from Ocean Subsidiaries for the purchase of merchandise stocks. The petitioner had demanded the outstanding debt be paid immediately and as the Ocean Subsidiaries were not able to meet the immediate payment had instead proposed a monthly payment of 3 percent on the outstanding debt. This arrangement was not agreeable to the petitioner. QUERY LETTER CONTENT: We refer to your Company's announcement dated 22 October 2003 in respect of the aforesaid matter. In this connection, kindly furnish the Exchange immediately with the following additional information for public release:- 1. The interest rate on the amount claimed for; and 2. The details of the default or circumstances leading to the filing of the winding-up petitions against Pasaraya Ocean (J.B) Sdn Bhd, Pasaraya Ocean (Melaka) Sdn Bhd, Pasaraya Ocean (Seremban) Sdn Bhd and Pasaraya Hugo (Kajang) Sdn Bhd. Yours faithfully TAN YEW ENG Sector Head, Issues & Listing WSW/TYE/LMN copy to: Securities Commission (via fax) SCK GROUP: KLSE Delists Securities ---------------------------------- After having considered all the facts and circumstances of the matter and upon consultation with the Securities Commission, the Exchange has decided that SCK Group Berhad's appeal against the Exchange's decision be disallowed and that the securities of the Company be de-listed from the Official List of the Exchange as the Company does not have an adequate level of financial condition to warrant continued listing on the Official List of the Exchange. Accordingly, please be informed that the securities of the above Company will be removed from the Official List of the Exchange at 9.00 in the morning on Monday, 27 October 2003. With respect to the securities of the Company which are deposited with the Malaysian Central Depository Sdn Bhd (MCD), please be informed that the securities of the Company will continue to remain deposited with the MCD notwithstanding the de-listing of the securities of the Company from the Official List of the Exchange. It is not mandatory for the securities of the Company to be withdrawn from MCD. Shareholders of the Company who intend to hold their securities in the form of physical certificates can withdraw these securities from their Central Depository System accounts with MCD, at anytime after the securities of the Company are de- listed from the Official List of the Exchange by submitting the application form for withdrawal in accordance with the procedures prescribed by MCD. Shareholders of the Company can contact any Member Company of the Exchange and/or MCD's helpline at 03-20717711 or 03-20717723 for information on the withdrawal procedures. TAT SANG: KLSE Delists Securities --------------------------------- After having considered all the facts and circumstances of the matter and upon consultation with the Securities Commission, the Kuala Lumpur Stock Exchange has decided that Tat Sang Berhad's appeal against the Exchange's decision be disallowed and that the securities of the Company be de-listed from the Official List of the Exchange as the Company does not have an adequate level of financial condition to warrant continued listing on the Official List of the Exchange. Accordingly, please be informed that the securities of the above Company will be removed from the Official List of the Exchange at 9.00 in the morning on Monday, 27 October 2003. With respect to the securities of the Company which are deposited with the Malaysian Central Depository Sdn Bhd (MCD), please be informed that the securities of the Company will continue to remain deposited with the MCD notwithstanding the de-listing of the securities of the Company from the Official List of the Exchange. It is not mandatory for the securities of the Company to be withdrawn from MCD. Shareholders of the Company who intend to hold their securities in the form of physical certificate can withdraw these securities from their CDS accounts with MCD, at anytime after the securities of the Company are de-listed from the Official List of the Exchange by submitting the application form for withdrawal in accordance with the procedures prescribed by MCD. Shareholders of the Company can contact any Member Company of the Exchange and/or MCD's helpline at 03-20717711 or 03-20717723 for information on the withdrawal procedures. TRU-TECH HOLDINGS: Fails to Meet Coupon Payment on RULS ------------------------------------------------------- Tru-Tech Holdings Berhad (Tru-Tech) announced that it was unable to meet the yearly coupon payment for its RM55 million Redeemable Unsecured Loan Stocks (RULS) (1996/2006). Nonetheless, the Company managed to redeem the RM3 million nominal amounts of the RULS, payable on 20 October 2003. Another RM42 million of the principal remains outstanding, which should be redeemed on a staggered basis over the next 3 years to 2006, according to the repayment schedule. Prior to this, the bondholders had granted their indulgence for 2 earlier extensions to the RULS's maturity, first from 18 October 2001 to 18 October 2004, and then from 18 October 2004 to 18 October 2006. Tru-Tech is currently in the midst of discussions with the bondholders to defer the coupon payment by another 12 months. Under the Trust Deed, Tru-Tech is given a 30-day grace period to remedy the default before the provisions of the Trust Deed are enforced. After this grace period, the trustee may declare that the outstanding RULS (with accrued interest) are immediately repayable. If the Company fails to remedy the situation, this would lead to an event of default. Meanwhile, RAM will continue to closely monitor the developments on the RULS, which currently carry a long-term rating of C1. Analyst: Janice Chong 03 - 7628 1774 janicechong@ram.com.my ===================== P H I L I P P I N E S ===================== MANILA ELECTRIC: Seeks ERC Refund Scheme Approval ------------------------------------------------- Manila Electric Co. (Meralco) is seeking approval from the Energy Regulatory Commission to implement the third and fourth phases of the Supreme Court-ordered refund of overcharges to customers, AFX Asia reported on Friday. The Company proposes to undertake the third phase in two years and the fourth phase in five years. The Company's proposed guidelines and procedures for the refund's third and fourth phases will cost the utility some 23.40 billion pesos. The phase III refund, which Meralco intends to undertake from March 2004 to Feb 2006, will cost 4.91 billion pesos. It will cover residential and general service customers, who consumed more than 300.00 kilowatt hour (kWh) in their April 2003 bill. The Company expects to refund as much as 18.53 billion pesos under phase IV, which is the last and covers commercial and industrial customers. Meralco intends to undertake the refund to its major customers from July 2005 to March 2010, either through a financial instrument incorporating a liquidity mechanism or fixed credit to bills, depending on the gross refund amount. The Supreme Court earlier upheld its Nov 2002 ruling, which was based on a 1998 decision of the defunct Energy Regulatory Board ruling that Meralco had over billed customers from Feb 1994 due to its treatment of income tax as operating expense, which the Company used as basis in computing its tariff. NATIONAL BANK: Mulls PhP40B Asset Sale Via SPV ---------------------------------------------- Philippine National Bank (PNB) plans to sell 40.00 billion pesos worth of bad assets through a special purpose vehicle (SPV), the Business World newspaper reported, quoting PNB executive Vice President Federico Cadiz. The bank is studying plans to sell 20 billion pesos worth of foreclosed assets and another 20 billion pesos of non-performing loans through interested SPV investors. PNB is not limiting its strategy to the SPV and is also weighing the advantages of disposing of properties through joint ventures and selling to portfolio investors looking for specific products such as office properties. NATIONAL BANK: Clarifies NPL Ratio Report ----------------------------------------- The Philippine National Bank (PNB) clarified the news article entitled "Philippine National Bank NPL ratio 50 percent as of Sept 19 versus 49" published by Bloomberg on October 22, 2003. The article reported, "Philippine National Bank said its non- performing loans (NPL) of 48.06 B pesos accounted for 50 pct of total loan portfolio as of Sept 19 compared with 49 pct as of June 19. In its published statement of condition, the bank said it set aside 16.43 B pesos as specific provisions for loan losses as of Sept 19, while general provisions totaled 1.54 B. Philippine National Bank (PNB or the Bank), in a letter dated October 22, 2003, disclosed to the Philippine Stock Exchange that despite the decrease in total amount of the NPL of the bank, the ratio of NPL to total loan portfolio increased because of the lower loan portfolio of the bank as of September 19, 2003. PHILIPPINE TELEGRAPH: ASM Set for November 28 --------------------------------------------- Further to Circular for Brokers No. 3268-2003 dated October 13, 2003, Philippine Telegraph and Telephone Corporation (PTT) furnished the Philippine Stock Exchange a copy of its SEC Form 17-IS (Preliminary Information Statement) in connection with its Annual Stockholders' Meeting which will be held on November 28, 2003, at 3:00 in the afternoon at the 4th Floor, Amorsolo Grand Ballroom, Holiday Inn Galleria Manila, One Asian Development Bank Avenue, Ortigas Center, Pasig City. As previously announced, "for the purpose of determining the stockholders entitled to vote at the annual meeting, the record date has been set on October 24, 2003." A copy of the PTT's Preliminary Information Statement shall be made available for reference at the PSE Centre and PSE Plaza libraries. For more information, go to http://www.pse.org.ph/html/disclosure/pdf/dc2003_3401_PTT.pdf ================= S I N G A P O R E ================= DAPHA ELECTRONICS: Winding Up Hearing Set November 7 ---------------------------------------------------- The petition to wind up Dapha Electronics Corporation Ptd. Ltd. is set for hearing before the High Court of the Republic of Singapore on November 7, 2003 at 10 o'clock in the morning. Bank of China, a creditor, whose address is situated at 4 Battery Road, Bank of China Building, Singapore 049908, filed the petition with the court on October 16, 2003. The petitioners' solicitors are Messrs RAJAH & TANN of 4 Battery Road, #15-01 Bank of China Building, Singapore 049908. Any person who intends to appear on the hearing of the petition must serve on or send by post to Messrs Rajah & Tann a notice in writing not later than twelve o'clock noon of the 6th day of November 2003 (the day before the day appointed for the hearing of the Petition). DREAM ALLIANCE: Releases Dividend Notice ---------------------------------------- Dream Alliance (S) Pte Ltd. (In Creditors' Voluntary Winding Up) issued a notice of intended dividend as follows: Address of Registered Office: formerly of 420 North Bridge Road #04-07 North Bridge Road Centre Singapore 188727. Court: N/A. No. of Matter: N/A. Last day for receiving proofs: 17th November 2003. Name of Liquidators: Gerald Loong Sie Kiong & John Teo Cheng Lok. Address of Liquidators: 15 Beach Road #03-10 Beach Centre Singapore 189677. I.T.I. COMMUNICATIONS: Issues Winding Up Order Notice ----------------------------------------------------- I.T.I. Communications Pte Ltd. issued a notice of winding up order made on the 10th day of October 2003. Name and address of the Liquidator: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118. (Ref: W.JL.7175.1.02.dcr) Messrs WENDY WONG & PARTNERS Solicitors for the Petitioner. MAXIMILLION BUILDING: Winding Up Hearing Set November 7 ------------------------------------------------------- The petition to wind up Maximillion Building & Civil Engineering Pte Ltd. is set for hearing before the High Court of the Republic of Singapore on November 7, 2003 at 10 o'clock in the morning. Ko Aik Trading, a creditor, whose address is situated at 186 Choa Chu Kang Road, Singapore 689464, filed the petition with the court on October 16, 2003. The petitioners' solicitors are Messrs BL TOK & CO. of 47 Hill Street, #06-09 Chinese Chamber of Commerce & Industry Building, Singapore 179365. Any person who intends to appear on the hearing of the petition must serve on or send by post to Messrs BL TOK & CO. a notice in writing not later than twelve o'clock noon of the 6th day of November 2003 (the day before the day appointed for the hearing of the Petition). STRAITS INTERNATIONAL: Petition to Wind Up Pending -------------------------------------------------- The petition to wind up Straits International Resources 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. Kaki Bukit Industrial Park Pte Ltd., a creditor, whose address is situated at 62 Kaki Bukit Industrial Terrace, Singapore 416142, filed the petition with the court on October 7, 2003. The petitioners' solicitors are Messrs Rajah & Tann of 4, Battery Road, #15-00 Bank of China Building, Singapore 049908. Any person who intends to appear on the hearing of the petition must serve on or send by post to Messrs Rajah & Tann 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 =============== * BOND PRICING: For the week of October 20 - October 24, 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 1 APN News & Media Ltd 7.250% 10/31/08 4 Australia Commonwealth Gov't Loans 3.000% 7/29/49 62 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 10 BIL Finance Ltd 8.250% 10/15/03 11 BIL Finance Ltd 8.750% 10/15/04 10 BIL Finance Ltd 8.750% 10/15/04 10 BIL Finance Ltd 9.000% 10/15/05 11 BIL Finance Ltd 9.250% 10/15/04 11 BIL Finance Ltd 10.000% 10/15/03 11 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 Garratts 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 64 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 9 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 43 Teco Electric & Machinery Co Ltd 2.750% 4/15/04 74 KOREA ----- Korea Electric Power Corporation 7.950 4/1/96 64 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 1 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 1 Gadang Holdings Bhd 3.000% 10/21/07 4 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 Media Prima Bhd 2.000% 7/18/08 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 43 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 69 Sengkang Mall Ltd 4.880% 11/20/04 1 THAILAND -------- Asia Credit PCL 3.750% 11/17/03 54 Bangkok Bank PCL 4.589% 3/3/04 64 Bank of Asia PCL 3.750% 2/9/04 64 Kiatnakin Finance and Securities PCL 4.000% 11/30/03 58 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 ***