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/raid1/www/Hosts/bankrupt/TCRAP_Public/040107.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 Wednesday, January 7, 2004, Vol. 7, No. 4 Headlines A U S T R A L I A AMP LIMITED: Unveils Adjustment of Option Exercise Prices AMP LIMITED: Issues Current Interest Notice AUSTRALIAN GAS: To Source Additional Gas from Bass Straits GYMPIE GOLD: Creditors, Receivers to Tackle Firm's Future Today GYMPIE GOLD: Issues Notice to Shareholders GYMPIE GOLD: May Remain in Administration for Months PARK AVENUE: Ex-director Fined, Barred from Managing any Firm SANTOS LIMITED: Expects AU$5 Million Dent on 2004 Earnings * Australia Life Insurance Sector Faces Challenges, Moody's C H I N A & H O N G K O N G BANK OF CHINA: China Spends US$45B on Bailout CHENGYA CO.: Parent Blinks, Injects More Cash into Losing Unit BRIGHT VANTAGE: Creditors Must Submit Claims by February 6 CHINA SOUTHERN: Receivers Keep Business Open CHINA SOUTHERN: Zhejiang Confirms 'Exposure' in Failed Brokerage DECKWELL BRIGHT: Issues Debt Claim Notice to Creditors JILIN CHEMICAL: Unveils December 30 EGM Resolutions I N D O N E S I A SEMEN GRESIK: Mulling Rights Issue to Buyout Cemex Stake LIPPO BANK: IBRA Aims to Sell 52 percent Stake by Mid February J A P A N FUJITSU LIMITED: Launches World's First ATA Hard Disk Drives MIZUHO FINANCIAL: Moody's Assigns Baa1 Rating RESONA HOLDINGS: Starts New Pay System K O R E A LG CARD: KDB May Acquire Ailing Company LG CARD: Bailout Plans Still in Doubt SK GROUP: Raises Sales, Investment Goal for 2004 M A L A Y S I A AKTIF LIFESTYLE: OCBC Bank Files Suit Against Firm AOKAM PERDANA: Issues Revised Rescue Scheme Update EMICO HOLDINGS: Financial Position Remains Unchanged HIAP AIK: Post Changes in Audit Committee O.Y.L. INDUSTRIES: Voluntary Winds Up of Dormant Unit PANCARAN IKRAB: Issues Financial Status SOUTHERN PLASTIC: Submits Rescue Scheme Proposal on Jan 24 P H I L I P P I N E S MAGNUM HOLDINGS: Plans to Address Capital Deficiency NATIONAL BANK: Eyes Local or Foreign Market For Debt Offer NATIONAL STEEL: Bidder Likely to Ask for Tariff Protection PHILIPPINE AIRLINES: Narrows Debt to US$1.5B PHILIPPINE LONG: Confident on 2003 Profit Target S I N G A P O R E CHARTERED SEMICONDUCTOR: MCL Ups Smart Card Production Volume EASTPAC CONSTRUCTION: Winding Up Hearing Set for January 16 GROSVENOR HOLDINGS: Creditors Must Submit Claims by February 3 HUA KOK: Files Legal Action Against Zhao Zhen INTERNATIONAL BEVERAGES: Issues Dividend Notice JJ INTERNATIONAL: Petition to Wind Up Pending SEATOWN CORPORATION: Issues Default Notice SINCOS PTE: Issues Debt Claim Notice to Creditors WEE POH: EGM Set for January 19 YONGNAM HOLDINGS: Issues Legal Action Update T H A I L A N D CAPETRONIC INTERNATIONAL: Director Steps Down SINO-THAI RESOURCES: SET Lifts SP Sign SINO-THAI RESOURCES: Receives Takeover Offer THAI MILITARY: Merger Talks with DBS Group Hit Snag - - - - - - - - ================= A U S T R A L I A ================= AMP LIMITED: Unveils Adjustment of Option Exercise Prices --------------------------------------------------------- AMP Limited announced that, with effect from 13 January 2003, the exercise prices applicable to options to subscribe for fully paid ordinary AMP shares granted under the AMP Employee Option Plan and AMP Executive Option Plan will be reduced to the adjusted exercise prices set out in the attached Schedule as a consequence of AMP's recent Demerger and Rights Offer. Other than as indicated in the schedule, the adjusted exercise price applicable to each option granted on a date specified in the schedule was calculated by AMP (in consultation with external consultants) in accordance with section 9.2.4 of AMP's Explanatory Memorandum relating to its Demerger. SCHEDULE Grant date Original Eligible Participants Ineligible Participants exercise * price Number of Adjusted Number of Adjusted Options Exercise Options Exercise Price Price 26/06/1999 $16.13 3,263,255 $12.64 32,427* $14.21 28/08/1999 $15.80 183,599 $12.37 4,573* $13.88 30/10/1999 $15.47 220,000 $12.03 18/12/1999 $16.10 40,000 $12.55 1/01/2000 $16.77 1,315,523 $13.10 1,412* $14.85 22/01/2000 $16.13 240,000 $12.57 19/02/2000 $14.33 30,000 $11.11 30/06/2000 $16.41 6,634,139 $12.77 45,000* $14.49 26/08/2000 $17.94 35,000 $14.02 28/10/2000 $17.37 41,406 $13.49 9/12/2000 $19.03 120,000 $14.85 21/03/2001 $19.77 43,308 $15.39 21/07/2001 $20.46 5,151,824 $15.95 57,000* $18.54 15/12/2001 $18.26 85,922 $14.09 23/03/2002 $19.44 100,000 $15.00 *Ineligible Participants in the relevant Option Plan are participants who are not entitled to receive the full reduction in the exercise prices applicable to their Options because: - Their registered addresses are in, or they are citizens or residents of, a jurisdiction outside Australia, New Zealand, the United Kingdom, the United States of America and India; or - They have agreed to forgo the full exercise price reduction. The exercise prices of Options held by Ineligible Participants have been reduced only by the amount required as a result of the effect of rules 11.3 and 11.4 of the applicable Option Plan and of ASX Listing Rules 6.22.2 and 7.22.6. For a copy of the press release, go to http://bankrupt.com/misc/AMP010604p2.pdf Manager Company Announcements Office Australian Stock Exchange Level 4, 20 Bridge Street Sydney NSW 2000 Manager Market Information Services Section New Zealand Stock Exchange Level 9, ASB Tower, 2 Hunter Street Wellington New Zealand AMP LIMITED: Issues Current Interest Notice ------------------------------------------- Pursuant to sub-section 259C(2) of the Corporations Act, AMP Limited hereby advises its current interest in the Company. To find all the relevant details go to http://bankrupt.com/misc/AMP010604.pdf AUSTRALIAN GAS: To Source Additional Gas from Bass Straits ---------------------------------------------------------- Australian Gas Light Co. (AGL.AU) will source additional gas from Bass Straits at an extra cost until such time the operations of Santos Ltd.'s (STO.AU) Moomba gas supply plant returns to normal. The company said this contingency arrangement will cost it an extra AU$5 million before tax. But Managing Director Greg Martin assures "these additional costs are expected to be fully recovered from industrial and commercial contract gas customers." The decision to source additional gas supplies was taken after Santos, the majority shareholder of the Moomba facility, said it would reduce capacity for at least two months. Fire broke out Thursday at the Moomba plant, which processes gas from Australia's largest onshore gas field, forcing authorities to restrict gas supplies to both South Australia and New South Wales. "AGL is working to ensure the safety and integrity of the New South Wales gas network it owns and operates as well as mitigating the extent to which it is necessary to curtail gas supply to NSW's industrial and commercial gas customers," Mr. Martin assured customers. GYMPIE GOLD: Creditors, Receivers to Tackle Firm's Future Today --------------------------------------------------------------- Creditors of Gympie Gold Ltd. will meet Wednesday with Joseph Hayes and Murray Smith, the administrators from KPMG appointed by the board when it placed the company into voluntary administration a week ago. According to Asia Pulse, the meeting will take place in Sydney, where administrators will outline the options for the company. A fire, which broke out at its mine on Christmas Eve, forced the company to seal the mine and subsequently apply for voluntary administration on December 30. The company said the mine will be out of production for some months. Aside from the KPMG administrators, HSBC Precious Metals (Australia) Ltd, acting as agent for the company's corporate loan facility, also called in Andrew Love, Peter Geroff and Allan Lewis of Ferrier Hodgson as receivers and managers. "The mine's closure will have significant consequences for the company's Gympie Eldorado Gold Mine north of Brisbane which is relying on cash flow from the colliery to fund a three year exploration program expected to identify millions of ounces of gold reserves," according to Asia Pulse. Gympie Gold posted AU$22.9 million (US$17.54 million) in net loss for 2002/03 in the wake of production disruptions at Southland. GYMPIE GOLD: Issues Notice to Shareholders ------------------------------------------ Following an underground fire at the Southland Colliery over the Christmas period, the Board of Gympie Gold Limited appointed Joseph Hayes and Murray Smith of KPMG as Voluntary Administrators to the Group on 30 December 2003, the Company said on Monday. Later the same day, HSBC Precious Metals (Australia) Limited, acting as Agent for the Company's corporate loan facility, appointed Andrew Love, Peter Geroff and Allan Lewis of Ferrier Hodgson variously as Receivers and Managers to the Group. The Company advised that the general meeting of shareholders, which was scheduled for 8 January 2004 to approve the issue and placement of new shares and ratify the November 2003 placement for the purposes of raising capital, has now been cancelled. Shareholders should also refer to the Company's website www.gympiegold.com.au which contains the series of announcements made by the Company. In the first instance, shareholders should contact Roger Howe at Gympie Gold on 02 9251 2777. For a copy of the letter from Harry Adams, the Managing Director of Gympie Gold Limited, please access http://bankrupt.com/misc/gympie010604p2.pdf GYMPIE GOLD: May Remain in Administration for Months ---------------------------------------------------- Gympie Gold Ltd. is likely to remain in the hands of administrators and receivers for at least several months, Dow Jones reports. Company shares have been suspended from trading since December 29 following a fire that shut down its Southland Colliery and has put the future of the Company in doubt. Its Gympie Eldorado Gold Mine is located at Gympie, north of Brisbane. The mine in recent years has produced 30,000 to 55,000 ounces of gold a year. PARK AVENUE: Ex-director Fined, Barred from Managing any Firm ------------------------------------------------------------- Fernando Giaimo, a Perth company director, has been sentenced in the Perth District Court after pleading guilty to a charge brought by the Australian Securities and Investments Commission (ASIC). Mr. Giaimo, 56 years old, of Ballajura, was sentenced to one- year imprisonment in relation to one count of making a false statement in a document lodged with ASIC. The one-year sentence was suspended and Mr. Giaimo was required to enter into a recognizance in the amount of $5,000 for three years and to be of good behavior for that period. Mr. Giaimo was also fined $5,000. The charge followed an ASIC investigation into the conduct of Mr. Giaimo and Park Avenue Homes International Pty Ltd (Park Avenue), of which Mr. Giaimo was a director. In July 2001, Park Avenue applied to the Builders Registration Board of Western Australia (the Board) for registration as a builder under the Builder's Registration Act (WA) 1939. When considering Park Avenue's application, the Board required the company to satisfy it that the company was sufficiently financial to trade as a builder. On 27 August 2001, through his solicitor, Mr. Giaimo provided the Board with documents showing that Park Avenue had issued 150,000 ordinary uncalled shares to Mr. Giaimo on 23 August 2001. The documents included a Form 207 (Notification of Share Issue), signed by Mr. Giaimo and lodged with ASIC. The effect of this transfer was that an additional amount of $150,000 would be available to creditors if the company was placed in liquidation. Park Avenue's application was approved. On 22 April 2002, a Form 902 (Information Supplementary to a Form or Document Previously Lodged) was lodged electronically with ASIC. It stated that 'The allotment of shares form dated 23 August 2001 was lodged incorrectly as there was no allotment to be advised of'. The Form 902 was signed by Mr. Giaimo. In September 2002, Park Avenue was placed into liquidation. In response to the liquidator's queries regarding the share issue and apparent withdrawal, Mr. Giaimo stated that the shares were issued in error and without his authority. As a result of Mr. Giaimo's conviction he is disqualified from the management of corporations until 7 November 2008. The matter was prosecuted by the Commonwealth Director of Public Prosecutions. SANTOS LIMITED: Expects AU$5 Million Dent on 2004 Earnings ---------------------------------------------------------- Shareholders of the Moomba gas plant, which caught fire Thursday last week, estimate the interruption of operations will cost them as much as AU$40 million. In a report yesterday, Asia Pulse said Santos Ltd., the largest stakeholder, has estimated losses of AU$25-30 million if the waiting period before normal operations is restored would be 45 days. Santos said an estimated 2.1 million barrels of oil equivalent will also be lost during the period. "Santos Spokesman Mark Kozned said the fire would have no impact on 2003 profit and was unlikely to impact on dividends for the 2004 calendar year. The estimates are based on December 2003 oil prices and exchange rates," according to Asia Pulse. Another shareholder, Origin Energy, which holds a 13.1 percent stake in the joint venture, said it expected the disruption to slash AU$5-6 million off its 2004 bottom line. A 4.75 percent interest holder, Novus Petroleum Ltd. said the fire would take AU$2.5 million (US$1.92 million) off its operating cash flow and AU$2 million (US$1.53 million) off its net profit in the year ending December 31, 2004. Meanwhile, customers also complained about huge losses from the restriction of gas supplies that ensued after the fire. Australian steel producer OneSteel Ltd said Monday around 5,000 tonnes out of the an annual production of 1.2 million tonnes were lost when it suspended production for about 36 hours. This will cost the firm about AU$5 million in earnings before interest and tax. "The Australian Gas Light Company (AGL) [on Tuesday] said four of its large industrial customers had been affected and had subsequently reduced gas usage in accordance with standard agreed operating procedures," Asia Pulse said. * Australia Life Insurance Sector Faces Challenges, Moody's ----------------------------------------------------------- Moody's Investors Service said that the prospects for Australia's life insurance market are challenging, while long- term growth potential is apparent in the superannuating market. "The sector faces a difficult operating environment with results strongly linked to the investment markets. Without a strong improvement in investment conditions, the life industry will be challenged to produce strong and sustainable earnings," Moody's says in a new report. The report, entitled Australian Life Insurance Industry Outlook: Challenges Ahead as Earnings Remain Dependent on Better Investment Performance was authored by Donovan North, a Moody's Assistant Vice President and Analyst. "Long-term prospects in the superannuation market are good, but the life industry will face competition from other financial institutions," North notes in the new report. The report goes on to comment that the mature and evolving state of the Australian market means the emergence of challenges determined by the sophistication of customer needs, the presence of financial planners and the introduction of new products. Such challenges usually assume the form of low margins and strong competition and arise from issues not usually apparent in less developed insurance markets. "Successful companies will display strategies that clearly identify their position along Australia's wealth management value chain," he says. "Life insurers face various challenges, including the issue of achieving stronger growth and differentiation from their peers. Further consolidation is expected as smaller companies fall away," North adds. The report adds that insurers will look to increased efficiency and above-average investment performance and service levels in order to differentiate themselves from their competitors. "The regulator, APRA, will continue to play an increasingly important role in monitoring the financial health of the life insurance industry in Australia's supportive environment," North states, and expects that future regulatory focus will look at the sales practices of Australia's financial advisers. For a complete copy of the Rating Agency's report, go to http://www.moodys.com/moodys/cust/research/venus/Publication/Ind ustry%20Outlook/noncategorized_number/80830.pdf ============================ C H I N A & H O N G K O N G ============================ BANK OF CHINA: China Spends US$45B on Bailout --------------------------------------------- The Chinese government is spending $45 billion to rescue the Bank of China and China Construction Bank to help the nation's second and third-largest lenders to reduce bad loans before initial public share sales in the next two years, Bloomberg News reports. China Construction Bank last month met with investment banks to arrange an initial public offer of as much as $5 billion this year and Bank of China targets an IPO in 2005. ``It's a sizeable amount,'' said Arthur Lau, a banking analyst at Fitch Ratings, which rates Bank of China's foreign currency debt BBB+, its third-lowest investment grade. ``Their balance sheets will be cleaner, making it easier for potential equity investors to understand the situation.'' Bank of China wants to cut its bad-loan ratio below 10 percent from 17.98 percent now, to make it more attractive to investors and to compete with overseas competitors, including Citigroup Inc., which can enter China without restrictions at the end of 2005. CHENGYA CO.: Parent Blinks, Injects More Cash into Losing Unit -------------------------------------------------------------- Sichuan Expressway Co. (0107.HK) was forced to increase its stake in Chengya Co. after authorities threatened to cancel the business permit of the loss-making unit, Dow Jones reported yesterday. The unit, set up in 1997 to build and operate the 144-kilometer Chengya expressway connecting Chengdu and Yaan City, was ordered recently to make up for a shortfall in registered capital. The subsidiary blamed Yaan Co., one of five partners in the project, for the shortfall, claiming the latter had reneged on a pledge to inject into the company a total of CNY117 million in assets. Sichuan Expressway said Yaan Co. had so far committed only CNY88 million. To skirt the possible shutdown of the unit, Sichuan Expressway poured an additional CNY28.97 million into Chengya, raising in the process its stakes to 62.595% from 58.975%, Dow Jones said. In justifying the injection, the parent said Chengya is remains profitable, despite dropping 3.05% year-on-year in the six months ended June 2003. "The directors (of Sichuan Expressway) believe Chengya Expressway will achieve a recovery in growth in its toll income and profit ability and continue to contribute to the income of the group in the future," a Sichuan Expressway statement partly reads. Following the injection, Yaan Co.'s interest in the project has fallen to 11.005% from 14.625%, said Dow Jones. BRIGHT VANTAGE: Creditors Must Submit Claims by February 6 ---------------------------------------------------------- Notice is hereby given that the creditors of Bright Vantage Enterprise Limited (In Member's Voluntary Liquidation), whose debts or claims have not already been admitted, are required on or before February 6, 2004 to prove by affidavit their debt or claims by sending their names, addresses and descriptions and full particulars of their debts or claims in accordance with Form 63A of the Companies (Winding-up) Rules, and the names and addresses of their solicitors (if any) to the undersigned Liquidators of the said Company, and, if so required by notice in writing from the said Liquidators, are personally or by their solicitors or duly authorized representative, to come and prove their said debts or claims and to establish any title they may have to priority at such time and place as shall be specified in such notice. Julian Kai Wo Chow Joint and Several Liquidator 28/F, Bank East Asia Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong Natalia Seng Joint and Several Liquidator 28/F, Bank of East Asia Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong CHINA SOUTHERN: Receivers Keep Business Open -------------------------------------------- The government team that took over China Southern Securities managed to keep operations on Monday normal after putting the company in administrative receivership last Friday. "All the company's business activities are continuing normally," Asia Pulse quoted Niu Guanxing, head of the takeover team. "Transactions are not being interrupted, and there have been no complaints from clients." Mr. Niu said his team worked overtime over the weekend to ensure that business will open Monday as normal and as hitch-free as possible. "We have outlined a detailed job description for all employees as well as the company's branches and subsidiaries, and mapped out procedures to ensure the proper management of its bank accounts." He added employees have committed to do their jobs well, believing that the company would "thrive again." Based in the Shenzhen, the brokerage has a registered capital of CNY3.45 billion (US$416.9 million) and boasts of 56 major shareholders, including state-owned banks and insurance companies. CHINA SOUTHERN: Zhejiang Confirms 'Exposure' in Failed Brokerage ---------------------------------------------------------------- Zhejiang Southeast Electric Power Co. became the first company to acknowledge partly owning China Southern Co., the country's erstwhile No.5 brokerage that fell into administrative receivership last week. In a legal notice yesterday, Zhejiang Southeast it has a CNY220 million exposure in the failed brokerage house, equivalent to 5.8% stake. It is not yet clear how the collapse of China Southern will impact its results for the year, it said. Regulators took over the management of China Southern Friday, accusing it of engaging in illegal business practices. DECKWELL BRIGHT: Issues Debt Claim Notice to Creditors ------------------------------------------------------ Notice is hereby given that the creditors of Deckwell Bright Limited (In Member's Voluntary Liquidation), whose debts or claims have not already been admitted, are required on or before February 6, 2004 to prove by affidavit their debt or claims by sending their names, addresses and descriptions and full particulars of their debts or claims in accordance with Form 63A of the Companies (Winding-up) Rules, and the names and addresses of their solicitors (if any) to the undersigned Liquidators of the said Company, and, if so required by notice in writing from the said Liquidators, are personally or by their solicitors or duly authorized representative, to come and prove their said debts or claims and to establish any title they may have to priority at such time and place as shall be specified in such notice. Julian Kai Wo Chow Joint and Several Liquidator 28/F, Bank East Asia Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong Natalia Seng Joint and Several Liquidator 28/F, Bank of East Asia Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong JILIN CHEMICAL: Unveils December 30 EGM Resolutions --------------------------------------------------- Jilin Chemical Industrial Company Limited (NYSE: JCC) held an Extraordinary General Meeting (EGM) on December 30, 2003 in Jilin City, Jilin Province, the People's Republic of China (the PRC) in which it passed the following resolution as ordinary resolution of the Company: To approve the agreement dated 13 November, 2003 entered into between the Company and Jilin Chemical Group Corporation for the purchase of certain assets including equipment and machinery at an aggregate consideration of RMB159.5 million to be satisfied by way of set off against accounts receivables of the Company from Jilin Chemical Group Corporation, and the directors of the Company (or any of them) be and are hereby authorized to take such actions and execute such documents as they may consider necessary or desirable to carry out and complete the transaction. Jilin Chemical is the largest producer of basic chemicals and chemical raw materials, and one of the largest diversified chemical enterprises in the PRC. Its primary business comprises the production of petroleum products, synthetic rubber products, chemical fertilizers and other chemical products. For the further information, please contact: Mr. Li Chunqing Jilin Chemical Industrial Company Limited Tel: +86-432-3903651 Fax: +86-432-3028126 Ms. Mabel Tai Fortune China Public Relations Ltd. Tel: +852-2838-1162 Fax: +852-2834-5109 ================= I N D O N E S I A ================= SEMEN GRESIK: Mulling Rights Issue to Buyout Cemex Stake -------------------------------------------------------- State Enterprises Minister Laksamana Sukardi disclosed the government is studying two ways to buyout the stake of Cemex S.A. in PT Semen Gresik, The Jakarta Post said yesterday. One option is to raise funds via a rights issue; the second by asking new investors to bankroll the buyback of Cemex shares. Mr. Laksamana admitted the government by itself had no money to repurchase the share. The government has a 51 percent shareholding in Semen Gresik, while Cemex holds 25.6%. As part of its stake acquisition in Semen Gresik for AU$290 million, it had the option to increase its stakes to 51% by the end of 2001. The government, however, has so far reneged on this commitment, prompting the Mexican firm to request for arbitration before the Washington D.C.-based International Center for the Settlement of Investment Disputes. Mr. Laksamana said the government is now in the process of selecting lawyers to face Cemex at the ICSID. "We are still selecting our lawyers for that, but on the other hand, the government is still working to seek the best possible solution to the case," he told The Jakarta Post. LIPPO BANK: IBRA Aims to Sell 52 percent Stake by Mid February ------------------------------------------------------- According to the Indonesian Bank Restructuring Agency (IBRA), the sale of the government's 52.05-percent stake in Bank Lippo would be completed next month, IndoExchange reports, citing IBRA Chairman Syafruddin A. Temenggung. Earlier, the IBRA had cancelled the bids from the three investors, Eurocapital Asia Limited, Platinum Securities Company Limited and Swissasia Global as they bid the Lippo shares at lower prices than those set by the agency. ========= J A P A N ========= FUJITSU LIMITED: Launches World's First ATA Hard Disk Drives ------------------------------------------------------------ Fujitsu Limited announced the availability of the MHT20xxBH hard disk drive (HDD) series, the world's first 2.5" HDDs with a Serial ATA interface. The new HDDs deliver superior performance, making them ideal for notebook computers and other mobile computing products. The MHT20xxBH series, which offers spindle speeds of 5,400 RPM and storage capacities of up to 80 gigabytes (GB), will be available to product manufacturers worldwide. Compared to the parallel ATA interface typically used on 2.5" HDDs today, the Serial ATA interface permits faster data- transfer rates. To complement the increasingly powerful data- processing capabilities in mobile computing products, there has been a strong market need for 2.5" Serial ATA HDDs. Fujitsu is the first in the industry to meet this need with the new MHT20xxBH series, which is equipped with a system on a chip (SoC) that supports the Serial ATA II Phase I specification (*1), achieving a host transfer rate of 150 megabytes per second, 50 percent faster than the earlier MHT20xxAH series. In addition, Native Command Queuing speeds up the drive's internal processing by allowing up to 32 instructions to be queued and their order of execution rearranged for optimal throughput. With a world-class data density of 10.7 gigabits per square centimeter (or 69 gigabits per square inch), the drive is available in 40, 60, and 80GB capacities to suit a range of customer needs. Fujitsu will begin sample shipments of the MHT20xxBH at the end of April. The Company has targeted worldwide sales of two million units in fiscal 2004 (year ending March 31, 2005). *1. Serial ATA II Phase I: An expanded specification called SATA Extensions, which includes native command queuing and other features that speed up internal processing. [MHT20xxBH Specifications] Capacity 40/60/80GB Spindle speed 5400 RPM Average seek time 12 ms Data transfer rate 150MB/sec Buffer size 8MB Maximum data density 10.7Gbit/cm2 (69Gbit/in2) Shock tolerance: Operating 225G (2 ms) Non-operating 900G (1 ms) Power requirements 5V 5 percent Power consumption R/W (typ) 2.3W Standby (typ) 0.25W Idle (typ) 0.85W Noise, when idle 2.8 Bel Weight 99g or less For more information on Fujitsu's HDDs and other storage systems, please see: http://www.fujitsu.com/services/computing/storage/hdd/ [Trademark notice] All product names and Company names mentioned herein are the trademarks or registered trademarks of their respective firms. About Fujitsu Limited Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace- setting technologies, high-reliability/performance computing and telecommunications platforms, and a worldwide corps of systems and services experts make Fujitsu uniquely positioned to unleash the infinite possibilities of the broadband Internet to help its customers succeed. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.6 trillion yen (about US $38 billion) for the fiscal year ended March 31, 2003. For further information, please visit the Fujitsu Limited home page at: www.fujitsu.com/ As part of Fujitsu Ltd.'s effort to enhance its financial stability, such as its ongoing reduction of interest-bearing liabilities, it has decided to sell a portion of its shareholdings in Fanuc Ltd. (FANUC) through a secondary offering (the Offering), TCR-AP reported recently. Contact: [Press Contact] Fujitsu Limited Public & Investor Relations Tel: 3-6252-2176 Fax: 3-6252-2753 Inquiries: http://pr.fujitsu.com/en/news/fjcontacts.html [Customer Contact] Fujitsu Limited Storage Products Group Hard Disk Business Div. Tel: 44-754-2130 Email: hdd@fujitsu.com MIZUHO FINANCIAL: Moody's Assigns Baa1 Rating --------------------------------------------- Moody's Investors Service has assigned a Baa1 junior subordinated debt rating to the U.S. dollar denominated perpetual subordinated bonds of Mizuho Financial Group (Cayman) Limited (MHFGC). Mizuho Financial Group, Inc. (MHFG) guarantees the notes on a subordinated and conditional basis. MHFGC is a directly and wholly-owned subsidiary of Mizuho Financial Group, Inc. (MHFG), which is a financial holding Company for Mizuho Financial Group entities. MHFGC is also established as a special purpose Company established for the sole purpose of raising funds in the markets and providing subordinated loans to Mizuho Corporate Bank (MHCB) and Mizuho Bank (MHBK). The net proceeds from this bond issue will be used to make subordinated loans to MHCB and/or MHBK. The Baa1 junior subordinated debt rating for the subject bonds is solely based on the junior subordinated debt ratings of MHCB and MHBK, and the restricted use of the subject bonds' proceeds to make junior subordinated loans to MHBK and MHCB. In view of the nature of this special purpose Company, the debt holders of these perpetual subordinated bonds issued by MHFGC would effectively take on the status of junior subordinated debt holders of the two Mizuho operating banks (MHBK and MHCB). Junior subordinated debt ratings of MHCB and MHBK are rated at Baa1, with stable outlooks. Moody's said Mizuho banks' long-term deposit and debt ratings reflect the bank's domestic banking franchise, as well as the Mizuho banks' significant consolidated asset size with international operations, which may warrant sufficient systemic support over the long run. Moody's added, however, that Mizuho banks' financial condition remains weak, as indicated by the E bank financial strength rating. Recently, Mizuho banks have recorded net profit for the interim period ending September 2003 due to lower than expected credit expenses, improved results from equity portfolio, and the settlement of dispute with Tokyo Metropolitan Government. Moody's will monitor whether these recent developments, particularly loan portfolio performance, could be sustainable and would lead to the bank's improved credit profile. RESONA HOLDINGS: Starts New Pay System -------------------------------------- The Resona banking group will introduce a new pay schedule in April 2004, reports the Kyodo News. As a result, the difference in annual salaries between employees with the same number of work years and similar educational background could be as high as two times. Currently, those employees are paid almost the same. ========= K O R E A ========= LG CARD: KDB May Acquire Ailing Company --------------------------------------- The Korea Development Bank (KDB) is expected to assume control of embattled LG Card Co., the Maeil Business News reports. The government and creditors of LG Card are planning to increase KDB's stake in the debt-ridden Company to a controlling level as they fear that co-management may deepen insolvency in the card firm. A consortium of four domestic banks -- Kookmin Bank, main creditor Woori Bank, National Agricultural Cooperatives Federation and KDB -- agreed in principle last Friday to put LG Card under the joint management, with KDB becoming its largest shareholder with a stake of about 19 percent. However, financial authorities and other creditors are now pushing to increase KDB's share in LG Card to more than 50 percent. LG CARD: Bailout Plans Still in Doubt ------------------------------------ The fate of LG Card Co. is still in doubt as some of its creditors demanded that the state-run Korea Development Bank shoulder a greater burden in rescuing the credit card issuer, according to the Korea Herald. If the creditors fail to agree on a rescue plan, LG Card could be placed under court receivership or liquidated, banking officials said. SK GROUP: Raises Sales, Investment Goal for 2004 ------------------------------------------------ Despite a turbulent year in 2003, in which the top managers-Chae Tae-won and Soh Kil-seung, were charged with illegal business practices, SK Group has raised its sales goal to 53 trillion won and investment goal at 3 trillion won for this year, in a move to gain long-term competitiveness for its key business units, the Maeil Business News said on Monday. "We hope to focus more on strengthening the competitiveness of existing businesses rather than expansion," an SK official said on Monday, adding it plans to invest heavily in home networking, wireless Internet and satellite DMB business units. =============== M A L A Y S I A =============== AKTIF LIFESTYLE: OCBC Bank Files Suit Against Firm -------------------------------------------------- Aktif Lifestyle Corporation Bhd refers to its announcement dated 2 January 2004 regarding its Practice Note No. 1/2001 - Default In Payment. Subsequent to this announcement, the Company received on Monday a fax from its solicitors that in respect of the suit filed against our Company by OCBC Bank Berhad (OCBC) (which was announced on 23/01/03), OCBC has obtained a summary judgement against our Company as a guarantor for the RM10.0 million loan which Aktif Lifestyle Stores Sdn Bhd (ALS) has with OCBC. The Company in consultation with its solicitors will be appealing against this judgement. Meanwhile, pursuant to Clause 6.1 of the Sale & Purchase Agreement signed with CP Properties Sdn Bhd [the Purchaser] (a subsidiary of Lion Diversified Holdings Berhad) for the sale of ALS, the Company is indemnified by the Purchaser against this claim. For your information, this relevant Clause is reproduced as follows: 6.1 Release of Guarantees 6.1.1. The PURCHASER shall use its best efforts to procure, subsequent to the Completion Date, the release and discharge of the VENDOR from its obligations under the following corporate guarantees given by the VENDOR to secure banking/credit facilities granted to ALS: (ii) Letter of Guarantee dated 1 October 1997 given in favor of OCBC Bank (Malaysia) Berhad to secure the principal sum of RM10,000,000.00 (Ringgit Ten Million). 6.1.2. Subject to the due performance and observance by the VENDOR of its obligations under this Agreement, the PURCHASER shall, pending the release and discharge of the guarantees referred to in Clause 6.1.1, indemnify and save harmless the VENDOR against all liabilities, actions, proceedings, demands and costs which the VENDOR may suffer or incur in connection with any claims arising from the aforesaid guarantees subsequent to the Ops Takeover Date. The Company will keep its shareholders informed of any pertinent development. AOKAM PERDANA: Issues Revised Rescue Scheme Update -------------------------------------------------- Southern Investment Bank Berhad (SIBB) refers to the announcements made on behalf of the Board of Directors of Aokam (Board) on 19 September 2003 and 14 October 2003 in relation to the revisions made to some of the terms of the Proposed Rescue Scheme (Revised Scheme). SIBB announced that the Foreign Investment Committee (FIC) has stated, vide its letter dated 23 December 2003, which was received on 2 January 2004, that it has no objection to the Revised Scheme. The FIC's approval is subject to the condition that FIC would review the equity structure of Aokam three (3) years from the date of FIC's approval. EMICO HOLDINGS: Financial Position Remains Unchanged ---------------------------------------------------- Emico Holdings Berhad refers to its monthly announcement in relation to paragraph 8.14 (2) of the Kuala Lumpur Stock Exchange (KLSE) listing requirements and Practice Note: 4/2001 and Affin Merchant Bank Berhad's announcement dated 23 July 2003 and 30 December 2003. Emico is still in the implementation stage of the Restructuring Scheme and there has been no change to the status of Emico's plan to regularize its financial position as announced earlier. HIAP AIK: Post Changes in Audit Committee ----------------------------------------- Hiap Aik Construction Berhad posted a notice of changes in its audit committee as follows: Date of change: 05/01/2004 Type of change: Redesignation Previous Position: Member of Audit Committee New Position: Chairman of Audit Committee Directorate: Independent & Non Executive Name: Chee Yon Long Age: 44 Nationality: Malaysian Qualifications: Association of Chartered Certified Accountants, U.K. Malaysian Institute of Accountants, Chartered Accountant Working experience and occupation: Started his career in practice under Y.L Chee & Co since 1989. With more than twenty (20) years of experience in auditing, taxation, Company secretarial and corporate advisory services. Directorship of public companies (if any): Nil Family relationship with any director and/or major shareholder of the listed issuer: Nil Details of any interest in the securities of the listed issuer or its subsidiaries: Nil Composition of Audit Committee (Name and Directorate of members after change): The new composition of Audit Committee comprise of Mr Chee Yon Long (Chairman), Dr Wong Kai Fatt (Member) and Mr Yap Ah Bee (Member). O.Y.L. INDUSTRIES: Voluntary Winds Up of Dormant Unit ----------------------------------------------------- O.Y.L. Industries Bhd (OYLI) announced it will place McQuay Beirut (Offshore), Inc, S.A.L. (MQB), an indirect subsidiary of the Company, under Member's Voluntary Winding-up pursuant to Section 65 and Section 66 of the Lebanese Commercial Code. MQB is currently a dormant Company and there are no plans to activate this Company. There is no loss arising from the voluntary winding-up of MQB. The voluntary winding-up of MQB will not have any material impact on the net tangible assets and earnings per share of the OYLI Group for the financial year ending 30 June 2004. PANCARAN IKRAB: Issues Financial Status --------------------------------------- Reference is made to paragraph 4.1(b) of PN4/2001 whereby Pancaran Ikrab Bhd is required to announce the status of its plan to regularize its financial position on a monthly basis until further notice from KLSE. The Securities Commission had via its letter dated 1st April 2003 (SC Letter) which was received on 3rd April 2003, approved the Proposed Restructuring Scheme (Scheme) as proposed save for the purchase consideration for the proposed acquisition of a piece of 99 years leasehold land measuring 95.927 square meters (the Land) by Dceil International Bhd (DCIB) (formerly know as Capital Abound Sdn Bhd) is at RM5,500,000 to be satisfied by way of issuance of 5,500,000 new ordinary shares of RM1.00 each in DCIB instead of RM8,000,000 as proposed. The SC's approval for the scheme is subject to certain conditions as announced earlier. On 30th April 2003, Public Merchant Bank Bhd (PMBB) on behalf of the Company, DCIB and the Vendor of the Land had submitted an appeal against the SC's decision on the valuation of the Land of RM5,500,000. The Company through PMBB is also seeking the SC's consideration on certain revisions in relation to the Scheme to satisfy certain conditions of the SC Letter. The Securities Commission had via its letter dated 12th August 2003 which was received on 15th August 2003, approved the revisions in relation to the Scheme to satisfy certain conditions of the SC Letter but rejected the appeal against the decision of the SC on the valuation of the Land of RM5,500,000. On 26th August 2003, PMBB on behalf of the Company and DCIB announced that they have written to the Vendor of the Land to terminate the Sale and Purchase Agreement dated 30th October 2002. On 18th September 2003, the Company's solicitors, Messrs. Raja Elena, Siew & Ang (RESA) have filed the Section 176 application to the Court for the court-convened meetings, together with the Certificate of Urgency. On 19th September 2003, PMBB furnished a copy of the Draft Explanatory Statement (ES) and Circular to Shareholders to the KLSE for vetting. On 8th October 2003, PMBB received a reply from the KLSE incorporating their comments on the Draft ES and Circular and requesting for the amended draft to be furnished to them subsequently. On 9th October 2003, the Company, DCIB and the Vendors entered into Supplemental Agreements: 1. To amend and vary certain terms and conditions set out in the original Share Sale Agreements dated 15th October 2002 and 30th October 2002 pursuant to the proposed acquisitions of Dceil, Imex and Bueno; 2. To extend the completion of the Scheme for another 9 months from 15th July 2003 to 15th April 2004; and 3. That the cumulative profit guarantee to be provided by the Vendors for the 3 financial years ended/ending 30th June 2003 to 2005 of RM36 million shall now be secured by RM36 million nominal value of RCULS instead of RM18 million nominal value of RCULS. Meanwhile, further to the hearing of the Section 176 application before the Judge in Chambers on 3rd October 2003, the Judge has granted the Order in terms of the application. The sealed copy of the Court Order has been extracted by RESA accordingly. However, due to a technical error, the solicitors, RESA has filed for a discontinuance of the earlier approved Court Order and re-filed a fresh Section 176 application to the Court. On 6th November 2003, PMBB sent the amended draft of the ES and Circular to the KLSE for further comment and approval. On 20th November 2003, PMBB on behalf of the Board of Directors of PIB, announced that the Company had obtained an order from the High Court of Malaya (Court) granting the Company leave to convene a meeting for its shareholders for the purposes of considering and, if though fit, approving with or without modification the Proposed Share Exchange pursuant to Section 176 of the Companies Act 1965 (Court Convened Meeting). A fair copy of the court order duly executed by the Registrar was extracted on 14th November 2003. Pursuant thereto, the Company is required to hold the Court Convened Meeting by 4th February 2004. On 22nd December 2003, PMBB received a reply from the KLSE incorporating their comments on the amended second draft of the ES and Circular sent to them on 6th November 2003. The amended third draft of the ES and Circular is being finalized and will be sent to the KLSE in due course. An appropriate announcement will be made accordingly in due course. SOUTHERN PLASTIC: Submits Rescue Scheme Proposal on Jan 24 ---------------------------------------------------------- Southern Plastic Holdings Berhad (SPHB) announced the events that have taken place from 1st December 2003 to 31st December 2003. An announcement was made on 11th December 2003 and 17th December 2003 on the winding-up petition - OCBC Bank (M) Sdn. Bhd. against SPHB. An announcement was made on 23rd December 2003 on the present status of the winding-up petitions against SPHB and its subsidiaries. A requisite announcement was made by our advisors Kuala Lumpur City Securities Sdn. Bhd. (KLCS) on 22nd December 2003 on the submission of the proposed restructuring scheme. An announcement was made by our advisors KLCS on 23rd December 2003 to seek the indulgence of the Securities Commission to grant a final extension of time of one month from 24th December 2003 to 24th January 2004 for SPHB to submit the proposed restructuring scheme. An announcement was made by our advisors KLCS on 30th December 2003 in the matter of the proposed scheme of arrangement and compromise under Section 176 of the Companies Act 1965('CA 1965') of SPHB and in the matter of Section 176 (10) of the CA 1965 and Order 62, Order 88 and Order 92 of the Rules of the High Court 1980 (restraining order) ===================== P H I L I P P I N E S ===================== MAGNUM HOLDINGS: Plans to Address Capital Deficiency ---------------------------------------------------- Magnum Holdings Inc. refers to Memo for Brokers No. 248-2003 dated October 2, 2003 pertaining to the Implementing Guidelines on Article XVI, Section 2 (f) of the Listings and Disclosure Rules, which took effect on October 17, 2003. Pursuant to the aforementioned guidelines, a listed Company may be considered for delisting if its stockholders' equity becomes negative. Thus, listed companies suffering from this financial condition, as reflected in its latest audited financial statements, must comply with the relevant provisions of the said guidelines. In relation thereto, Magnum Holdings, Inc. (MHI), in a letter dated January 5, 2004, submitted the following disclosure with respect to its plan of activities to be undertaken to bring the stockholders' equity from negative to positive: For a copy of its plan of action, go to http://bankrupt.com/misc/Magnum010604.pdf NATIONAL BANK: Eyes Local or Foreign Market For Debt Offer ---------------------------------------------------------- The Philippine National Bank (PNB) plans to increase additional capital this month to strengthen its ability to cover for risks, Business World reports. But it is still considering whether to pursue raising Tier 2 capital from local investors or the foreign market given the effect of the coming Presidential elections on the market and a pending review by international credit firms on Philippine banks' debt ratings. PNB Board of Directors has approved a plan to offer up to PhP2.2 billion in subordinated notes, which would qualify under Tier 2. The Tier 2 scheme calls for the issuance of debt papers with a fixed yield. It is usually the capital outside of common equity or Tier 1. The notes will mature in January 2015 from the date of issuance. PNB named JP Morgan as the lead arranger for the debt offering and Multinational Investment Bancorporation as the selling agent. NATIONAL STEEL: Bidder Likely to Ask for Tariff Protection ---------------------------------------------------------- Global Infrastructure Holdings Ltd., one of the two bidders for National Steel Corporation, is seeking tariff protection if and when it finally wins the contract to rehabilitate and eventually own the steel firm, according to Business World. Representatives of Global Infrastructure have raised the matter with the Department of Trade and Industry and the management committee of National Steel composed of creditor banks. The government and the management committee of National Steel have yet to decide on the proposal. PHILIPPINE AIRLINES: Narrows Debt to US$1.5B -------------------------------------------- Philippine Airlines, Inc. (PAL) has reduced its debt to US$1.5 billion from the US$2.3-billion level when it first started to restructure debt payments, reports the Business World. The airline is on schedule with its debt payments, paying about PhP400 million to PhP500 million each month to creditors, the biggest of who are European credit agencies. As of 2003, PAL had paid about $1 billion to creditors, PAL President Avelino L. Zapanta said. PHILIPPINE LONG: Confident on 2003 Profit Target ------------------------------------------------ Philippine Long Distance Telephone Co. (PLDT) expects a net profit of 10 billion pesos in the fiscal year 2003, according to Business World, citing PLDT President Manuel Pangilinan. PLDT had a net income of PhP3.12 billion in 2002. Shares of PLDT leapt to their highest level in nearly four years on Monday due to rosy profit prospects for 2003 and this year, helping the stock market to its highest level since March 2001, traders said. In the first nine months of 2003, PLDT's fixed line business incurred a net loss of 1.4 billion pesos, TCR-AP reported recently. PLDT has embarked on a labor force reduction program particularly in the fixed line segment to limit the losses. ================= S I N G A P O R E ================= CHARTERED SEMICONDUCTOR: MCL Ups Smart Card Production Volume ------------------------------------------------------------- Microelectronics Company Limited, one of the leading application-specific integrated circuit (ASIC) design and system integration companies based in China and China's first fabless Company to be listed on the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong (GEM Stock Code: 08102), announced plans to increase production volume of its smart card and digital power meter products at Chartered Semiconductor Manufacturing (Nasdaq: CHRT and SGX-ST: Chartered), one of the world's top three dedicated semiconductor foundries. Additionally, the companies are embarking on collaboration into emerging markets, such as radio-frequency identification (RFID) chips. "We are extremely pleased to collaborate with Chartered as our long-term primary foundry partner," said Shi Lei, general manager of Fudan Microelectronics. "We were able to benefit from Chartered's advanced system-on-chip technology expertise and world-class manufacturing capabilities. More importantly, Chartered possesses a strong commitment toward long-term collaboration as well as a focus on helping customers achieve market commercialization. These factors were instrumental to Fudan Microelectronics' market success within China and growing recognition overseas as a credible system solutions provider." "Fudan Microelectronics is a success story in the growth of China's semiconductor industry as it transformed from an IC research laboratory at Fudan University into a professional, leading business enterprise in China that it is today," said Bo Cheng, vice President and general manager of Asia Pacific at Chartered. "We are pleased with the early achievements of Fudan Microelectronics, who has been a customer of Chartered since 1997. We are also pleased that Chartered's efforts in China are bearing fruits. As China is seen as a strategic market for Chartered, we will continue to innovate, expand and customize our offerings of value-added technologies and solutions to better address local needs." For its products, Fudan Microelectronics utilizes Chartered's proven EEPROM and analog processes across multiple technology nodes. Fudan Microelectronics is also working with several of Chartered's qualified design and backend test and packaging partners to access a complete suite of silicon-proven solutions for reducing risk and shortening time to market. 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. About Shanghai Fudan Microelectronics Shanghai Fudan Microelectronics Company Limited was established in July 1998. It is an ASIC design and system integration Company based in the People's Republic of China and is mainly engaged in the design and sale of ICs for industrial applications. Products developed and sold by the Company can be classified into five categories -- ICs for telecommunication products, smart cards, motor vehicle electronic products, power supply electronic products and consumer electronic products. The Company provides IC testing software development, IC chips and IC product testing, production of probe card, research consultation on IC technology and development of overseas market. Information about Fudan Microelectronics can be found at www.fmsh.com. Media Contact: Chartered: Maggie Tan +65.6360.4705 maggietan@charteredsemi.com Fudan Microelectronics: Ding Qi Qi +86.21.5308.5050 extension 110 dingqiqi@fmsh.com.cn EASTPAC CONSTRUCTION: Winding Up Hearing Set for January 16 ----------------------------------------------------------- The petition to wind up Eastpac Construction Pte Ltd. is set for hearing before the High Court of the Republic of Singapore on January 16, 2004 at 10 o'clock in the morning. Trison Engineering Pte Ltd., a creditor, whose address is situated at Block 1002, Toa Payoh Industrial Park #06-1439, Singapore 319074, filed the petition with the court on December 1, 2003. The Petitioner's solicitors are Messrs Straits Law Practice LLC of 133 New Bridge Road #16-01 Chinatown Point Singapore 059413. Any person who intends to appear on the hearing of the petition must serve on or send by post to Messrs Straits Law Practice LLC a notice in writing not later than twelve o'clock noon of the 15th day of January 2004 (the day before the day appointed for the hearing of the Petition). GROSVENOR HOLDINGS: Creditors Must Submit Claims by February 3 -------------------------------------------------------------- The creditors of Grosvenor Holdings (Singapore) Pte Ltd (In Members' Voluntary Liquidation), which is being wound up voluntarily are required on or before the 3rd day of February 2004 to send in their names and addresses and particulars of their debts or claims, and the names and addresses of their solicitors (if any) to the undersigned, the liquidators of the said Company and, if so required by notice in writing by the said liquidators are, by their solicitors or personally, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. Dated this 2nd day of January 2004. JEREMY SIMON SPRATT STEPHEN TREHARNE Liquidators. c/o 8 Salisbury Square London EC4Y 8BB United Kingdom. HUA KOK: Files Legal Action Against Zhao Zhen --------------------------------------------- The Board of Directors of Hua Kok International Ltd announced that it has issued a writ of summons against Mr. Zhao Zhen. The action is for repayment of a loan of USD500,000.00 (the Loan) granted by the Company to Zhao Zhen under a loan agreement dated 14 August 2003 (the Loan Agreement) together with interests and costs and expenses incurred in the preparation of the Loan Agreement. The Loan was granted for the specific purpose stated in the Loan Agreement, that is, Zhao Zhen shall use the whole of the Loan for the purpose of setting up of a Company in Beijing, China (Beijing Company) and to do all such other things related thereto to enable the Beijing Company to be operationally ready. Subject to the terms and conditions of the Loan Agreement, the Loan was to be repaid by Zhao Zhen in the manner set out below:- (i) Zhao Zhen shall, before the date falling 3 months from the date of the Loan Agreement, account to the Company for all costs and expenses incurred and monies paid in relation to the Beijing Company and all such amounts which are mutually agreed by the parties as having been incurred or paid in relation to the Beijing Company (Agreed Amount) shall be set off against the Loan whereupon, inter alia, the Loan shall be deemed repaid to the extent of the Agreed Amount and the balance (if any) of the Loan after deducting the Agreed Amount shall be repaid to the Company forthwith in cash; and (ii) If there is no Agreed Amount, the Loan shall be repaid in full on the date falling 3 months from the date of the Loan Agreement. Prior to 13 November 2003, the Company's solicitors have written to Zhao Zhen's solicitors requesting that Zhao Zhen submit an account of the costs and expenses incurred by Zhao Zhen in relation to the Beijing Company. However, Zhao Zhen and the Company failed to agree on an "Agreed Amount" as contemplated under the Loan Agreement. In the premises, the Loan became due and payable on 14 November 2003. The Company will make further immediate announcement(s) as and when appropriate. Further to the announcement made by the Company on 13 August 2003 (Masnet no. 75) in relation to the proposed placement of 43,735,000 new ordinary shares to Mr Zhao Zhen, the Company wishes to announce that, due the above development, the Company has decided not to proceed with the proposed placement. INTERNATIONAL BEVERAGES: Issues Dividend Notice ----------------------------------------------- International Beverages Corporation Pte Ltd. (In Liquidation) issued a notice of intended dividend as follows: Address of Registered Office: c/o The Liquidator's Office. Last day for receiving Proofs: 23rd January 2004. Name of Liquidator: Mr Don M Ho, CPA. Address: c/o Don Ho & Associates Certified Public Accountants Corporate Advisory & Recoveries Equity Plaza 20 Cecil Street #12-02 & 03 Singapore 049705. Tel: 65320320 (8 lines). Fax: 65320331. JJ INTERNATIONAL: Petition to Wind Up Pending --------------------------------------------- The petition to wind up JJ International Entertainment Pte Ltd is set for hearing before the High Court of the Republic of Singapore on January 9, 2004 at 10 o'clock in the morning. Cheung Kwok Chung, a creditor, whose address is situated at Unit H, 10/F Gemstar Tower, 23 Man Lok Street, HungHom, Kowloon, Hong Kong, filed the petition with the court on November 11, 2003. The Petitioner's solicitors are Messrs Loo & Partners of 88 Amoy Street, Level Three, Singapore 069907. Any person who intends to appear on the hearing of the petition must serve on or send by post to Messrs Loo & Partners a notice in writing not later than twelve o'clock noon of the 8th day of January 2004 (the day before the day appointed for the hearing of the Petition). SEATOWN CORPORATION: Issues Default Notice ------------------------------------------ The Board of Directors of Seatown Corporation Ltd refer to the announcements released by the Company on 1 July 2003, 5 August 2003, 3 September 2003, 7 October 2003, 5 November 2003 and 2 December 2003 regarding the state of the banking facilities obtained by the Company's subsidiaries and, which are currently in default. The Directors make this announcement to confirm that there have been no further developments since the date of the earlier announcements. SINCOS PTE: Issues Debt Claim Notice to Creditors ------------------------------------------------- Notice is hereby given that the creditors of Sincos Pte Ltd (In Members' Voluntary Winding Up) which is being wound up voluntarily are required on or before 3rd February 2004 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 Liquidators of the said Company, and, if so required by notice in writing from any of the Liquidators, are, personally or by their solicitors, 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 2nd day of January 2004. JOHN TEO CHENG LOK Liquidator. 15 Beach Road #03-10 Beach Centre Singapore 189677. Tel: 6336 2828. Fax: 6339 0438. Note: Claims must be supported by a Proof of Debt (prescribed Form 77). Form 77 may be obtained from www.tfwlcl.com/form77.pdf WEE POH: EGM Set for January 19 ------------------------------- The Eight Annual General Meeting (EGM) of Wee Poh Holdings Limited will be held on Monday, 19 January 2004, at Orchid Country Club, Sapphire Room 2, 1 Orchid Country Club Road, Singapore 769162, at 9.30 a.m. for the following purposes: AS ORDINARY BUSINESS: 1. To receive and adopt the Directors' Report and Accounts for the year ended 30th June 2003 together with the Auditors' Report thereon. (Resolution 1) 2. To approve the payment of Directors' fees totaling S$108,000 for the year ended 30th June 2003 (2002 : S$109,000) (Resolution 2) 3. To re-elect Mr Wong Teck Kui, a Director who is retiring pursuant to Article 91 of the Articles of Association. (Resolution 3) 4. To re-elect Mr Chew Eu Hock, a Director who is retiring pursuant to Article 91 of the Articles of Association. (Resolution 4) 5. To re-elect Mr Chew Ban Chuan Victor Mark, a Director who is retiring pursuant to Article 91 of the Articles of Association. (Resolution 5) 6. To re-elect Mr Tan Kee Seng, a Director who is retiring pursuant to Article 91 of the Articles of Association. (Resolution 6) 7. To re-elect Mr Dr Ding Kuan Yong David, a Director who is retiring pursuant to Article 91 of the Articles of Association. (Resolution 7) 8. To re-elect Mr Tan Song Koon, a Director who is retiring pursuant to Article 95 of the Articles of Association. (Resolution 8) 9. To re-appoint Messrs Deloitte and Touche as Auditors and to authorize Directors to fix their remuneration. (Resolution 9) 10. To consider if thought fit, to pass the following resolution as an Ordinary Resolution, with or without modifications: "THAT the Directors be, and are hereby authorized subject to Section 161 of the Companies Act (Cap 50), the Articles of Association of the Company and the listing rules of The Singapore Exchange Securities Trading Limited, to allot and issue shares in the Company (whether by way of rights, bonus or otherwise) at any time and upon such terms and conditions and for such purposes and to such persons as the Directors may in their absolute discretion deem fit provided that the aggregate number of shares to be issued pursuant to this Resolution does not exceed 50 percent. of the issued share capital of the Company for the time being (of which the aggregate number of shares to be issued on a pro rate basis to existing shareholders shall not exceed 20 percent. of the issued share capital of the Company for the time being), and unless revoked or varied by the Company in a general meeting, such authority shall continue in force until the conclusion of the next annual general meeting of the Company or the date by which the next annual general meeting of the Company is required by law to be held, whichever is the earlier." (Resolution 10) 11. To transact any other business that may be transacted at an annual general meeting. (Resolution 11) BY ORDER OF THE BOARD TAN HUI MENG COMPANY SECRETARY 5 January 2004 NOTES: 1. A member of the Company entitled to attend and vote at the Annual General Meeting is entitles to appoint a proxy to attend and vote on his/her behalf. A proxy NEED NOT be a member of the Company. 2. The instrument appointing a proxy must be deposited at the Company's registered office at 213 Upper Thomson Road, Singapore 574348, not less than 48 hours before the time set for holding the annual general meeting. YONGNAM HOLDINGS: Issues Legal Action Update -------------------------------------------- Yongnam Holdings Limited announced on 2 December 2003 that one of its subsidiaries, Yongnam Malaysia, was facing legal actions commenced by certain of its trade creditors (the "Malaysian Trade Creditors), of which the following have filed winding-up petitions against Yongnam Malaysia: a. CH Yodoform Sdn Bhd (Claim for RM 722,589.55); b. All Pak Industries Sdn Bhd (Claim for RM 491,643.31); c. Danamin Trade & Services Sdn Bhd (Claim for RM 113,818.66); d. Industrial Hardware Supply Sdn Bhd (Claim for RM 142,556.27); e. Sunsing Importer & Exporter Sdn Bhd (Claim for RM 37,853.30). Yongnam Malaysia has been in negotiations with these creditors and has succeeded in securing the agreement of the above creditors to postpone the hearing of their winding-up petitions, pending further progress of the proposed bilateral agreements. The new dates for the above winding-up petitions are: a. CH Yodoform Sdn Bhd - 14 January 2004; b. All Pak Industries Sdn Bhd - 29 March 2004; c. Danamin Trade & Services Sdn Bhd - 6 January 2004; d. Industrial Hardware Supply Sdn Bhd - 12 January 2004; e. Sunsing Importer & Exporter Sdn Bhd - 19 March 2004. Danamin Trade & Services Sdn Bhd has agreed to a postponement of the winding-up petition due for hearing on 6 January 2004. Negotiations with CH Yodoform Sdn Bhd and Industrial Hardware Supply Sdn Bhd are still on-going. Yongnam Malaysia is continuing its efforts to negotiate with all of its other creditors to accept the proposed bilateral agreement as settlement of amounts owing to them. Yongnam Malaysia will also continue to negotiate with the creditors who have filed winding-up petitions to continue to hold their hands until a satisfactory outcome on the proposed bilateral agreement can be reached. Proposed Bilateral Settlement With a view to avoiding further claims being made against Yongnam Malaysia or further writs of seizure and sale being effected against Yongnam Malaysia, the Group is proposing to use its best efforts to settle the debts owed by the Malaysian Trade Creditors by entering into bilateral settlements (the "Malaysian Settlement Agreements) with all or some of the Malaysian Trade Creditors. As announced on 20 November 2003, such settlement is contemplated to be made by way of the issue of new Shares (the "Malaysian Shares) at an issue price of S$0.10 per Share. It is anticipated that a condition of the proposed Malaysian Settlement Agreements, amongst others, would be a stay of all present, pending, contingent or fresh suits, actions or proceedings against Yongnam Malaysia, including but not limited to winding up proceedings, judicial management proceedings, arbitrations, appointment of a receiver and/or manager or the enforcement or execution against or recovery of any assets of Yongnam Malaysia or monies due to Yongnam Malaysia (including garnishee proceedings), by the relevant Malaysian Trade Creditors. As mentioned in the announcement of 20 November 2003, the Malaysian Settlement Agreements are subject to various approvals being obtained, details of which can be found in the announcement of 20 November 2003. CAVEAT It should be noted that the aforementioned Malaysian Settlement Agreements are subject to various approvals being obtained. Such approvals are beyond the control of the Company and there is no assurance that all such approvals will be granted by the relevant authorities and that the Group will be successful in entering into the Malaysian Settlement Agreements. Further, negotiation with the Malaysian Trade Creditors may take some time (during which additional claims may be filed and additional writs of seizure and sale effected against Yongnam Malaysia) and may not necessarily be successful. In the event that any Malaysian Trade Creditor(s) elects to proceed with its claim against Yongnam Malaysia and Yongnam Malaysia is not able to reach settlement with such Malaysian Trade Creditor(s), Yongnam Malaysia may be compulsorily wound-up. The Directors are of the opinion that such an event would not have a material impact on the Group as the Group's principal operations are in Singapore, Hong Kong and Thailand. Accordingly, holders of securities in the Company and investors are advised by the Board to exercise caution in their dealings in the securities of the Company. The Company will make further announcements as and when appropriate. =============== T H A I L A N D =============== CAPETRONIC INTERNATIONAL: Director Steps Down --------------------------------------------- Subject : Notice of the resignation of the Company's director To : President, The Stock Exchange of Thailand Khun Chou, Jui-Hsiang tendered his resignation letter with effect from January 2, 2004. For your information. Sincerely yours, Seni Sudsawad Director of Finance and Accounting The Stock Exchange of Thailand classifies Capetronic International (Thailand) PCL under "Companies under Rehabilitation." CONTACT: 105 MOO 3,Bangna-Trat Road, Thakham, Bang Pakong Chacherngsao Phone: (038) 573161-72 Fax: (038) 573173-4 SINO-THAI RESOURCES: SET Lifts SP Sign -------------------------------------- The Stock Exchange of Thailand (SET) first posted the "SP" (Suspension) sign on the securities of Sino-Thai Resources Development Public Company Limited (STRD) because the Stock Exchange of Thailand (SET) has received the information that there might be a significant change in the Company's shareholder structure but the SET have not received any notification from the Company. The SET considers that the said information has major impact on the price of its securities. Now, the information has publicly disclosed to the investor, therefore, the SET has lifted the "SP" sign from STRD's securities effective from January 6, 2004 onwards. SINO-THAI RESOURCES: Receives Takeover Offer -------------------------------------------- Subject: Statement of Firm Intention to Make a Tender Offer To : The President, Stock Exchange of Thailand Sino-Thai Resources Development Public Co., Ltd. has been informed by IFCT Advisory Co., Ltd. that Mr. Vichai Limpanyakul, Mrs. Karanjana Manathamphaiboon, Mrs. Suladda Asawapayathkul, Mrs. Jintana Surapanich and Mr. Kitti Cheevakittigul intent to make a tender offer to purchase securities of the Company, as detailed in the "Statement of Firm Intention to Make a Tender Offer (Form 247-3)." Please be informed accordingly. Sincerely yours, Vitoon Somboon Managing Director To view full copy of this press release, follow this link http://bankrupt.com/misc/sino_thai.htm The Stock Exchange of Thailand classifies Sino-Thai Resources Development PCL under "Companies under Rehabilitation." CONTACT: Sino-Thai Tower, Floor 2 32/23 Sukhumvit 21 Road, Wattana, Bangkok Phone: 0-2260-2808-9 Fax: 0-2260-2810 THAI MILITARY: Merger Talks with DBS Group Hit Snag --------------------------------------------------- The planned merger of Thai Military Bank and DBS Thai Danu Bank PCL may not push through, as disagreements over some details of the deal begin to emerge, The Nation said, according to Dow Jones. The Singaporean parent of DBS Thai Danu, which holds a 51.7% stake in the bank, has reportedly demanded that Thai Military Bank set aside an additional THB30 billion in loan loss provision before it agrees to the merger. In addition, DBS Group Holdings Ltd. also allegedly asked for options of shares of the merged entity, which it could exercise once the bank's financial status improves. It is not clear whether or not Thai Military Bank is amenable to the proposal. According to The Nation, TMB Chairman Sommai Phasee neither confirmed nor denied there was a setback in the merger deal. "The deal has not collapsed, but then it is not OK either. We will talk to them (DBS officials) next week. Now, they are still on vacation," The Nation quoted Mr. Sommai as saying. The merger was supposed to be announced this week, according to Dow Jones. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick, Ma. Cristina Pernites-Lao, Editors. Copyright 2004. 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. 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