/raid1/www/Hosts/bankrupt/TCRAP_Public/040112.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
Monday, January 12, 2004, Vol. 7, No. 7
Headlines
A U S T R A L I A
DUKE ENERGY: Confirms Sale of Aussie Subsidiary for AU$1.5B
JACOBSEN ENTERTAINMENT: Entertainment Firm Exits Administration
LOY YANG: Offer by Australian Gas-led Consortium Cleared
PASMINCO LIMITED: Credit Line Extension Makes Re-float Possible
SANTOS LIMITED: Moody's Affirms Unit's Prime-2 Ratings
SANTOS LIMITED: Faces Lawsuits Related to New Year's Day Fire
C H I N A & H O N G K O N G
ASAT HOLDINGS: S&P Assigns 'B' Rating to Proposed ASAT Bonds
CARGO-LAND WAREHOUSE: Winding up Hearing Set February 18
T.S.T. GARMENTS: Bank of China Initiates Winding up Proceedings
I N D O N E S I A
BANK LIPPO: IBRA Receive Bids From Three Investors
BANK LIPPO: Philippine Bank Joins Consortium to Acquire Bank
BANK RAKYAT: Financial Strength Rating Upgraded to D-
J A P A N
MATSUSHITA ELECTRIC: Unveils Corporate Management Strategies
MITSUBISHI MOTORS: R&I Downgrades to Rating to BB-
RESONA HOLDINGS: Unveils Secondary Sales of Common Shares
TOSHIBA CORPORATION: Markets New Focus Measurement Technology
K O R E A
KOREA THRUNET: Creditors May Delay Sale
LG CARD: Given 1-day Grace Period on Maturing Debt
LG CARD: Bailout Still Unpredictable
LG CARD: MOFE Requests LG Group to Participate in Solving Fiasco
LG CARD: Suspends Cash Payments But Escapes Default
SK GLOBAL: Wants to Pay Employees US$1.2M in Severance Benefits
SK GROUP: Prosecution Seeks Arrest Warrant for Chairman
M A L A Y S I A
AOKAM PERDANA: Issues Rescue Scheme Update
KEMAYAN CORPORATION: Issues Restructuring Update
LII HEN: U.S. Units Enter Liquidation
SELOGA HOLDINGS: Clarifies Takeover Report
SOUTHERN PLASTIC: Unveils Default in Debt Payments
TELEKOM MALAYSIA: Clarifies Celcom IPO Report
WING TIEK: Issues Debt Restructuring Update
P H I L I P P I N E S
DIGITAL TELECOMMUNICATIONS: Clarifies AT&T Rate Deal Report
DIGITAL TELECOMMUNICATIONS: Names New Directors
FORTUNE CEMENT: Issues Plan to Address Capital Deficiency
MANILA ELECTRIC: Enters Alliance With First Gas
MANILA ELECTRIC: Sees Cash Deficit in First Half Due to Refund
MAYNILAD WATER: Suppliers Threaten to Stop Services to Firm
NATIONAL STEEL: India's Global Infrastructure Improves Offer
URBAN BANK: SC Dismisses Criminal Charges Against BSP Execs
S I N G A P O R E
EAB CORPORATION: Creditors Must Submit Claims by January 26
ELOGICITY INTERNATIONAL: Winding Up Hearing Set for January 16
FALCON PILING: Issues Judicial Management Order Notice
FEDEX SUPPLY: Issues Dividend Notice
JESS PALATE: Issues First and Final Dividend Notice
LKN-PRIMEFIELD: Post Changes in Shareholder's Interest
L&M GROUP: Post Changes in Audit Committee
WEE POH: WPC Set Creditors Meeting on February 11
ZESONETTE PTE: Petition to Wind Up Pending
T H A I L A N D
BANGCHAK PETROLEUM: Sells 3 Billion Depository Receipts
TPI POLENE: To Revive 300 Million Share Offering this Week
TPI POLENE: Rejects Net Profit Forecast Allegedly Made by CEO
- - - - - - - -
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A U S T R A L I A
=================
DUKE ENERGY: Confirms Sale of Aussie Subsidiary for AU$1.5B
-----------------------------------------------------------
Newly appointed Duke Energy CEO Paul Anderson confirmed last
week the U.S. energy group is unloading its Australian and
European units. Speaking at an analyst briefing at the
company's Charlotte, North Carolina head office, he said the
move is aimed at limiting the firm's exposure to overseas
markets.
"Duke's Australian office confirmed to the newspaper that
interested buyers would be able to review Duke's books until the
end of January, with the aim of divesting the company's
Australian operations by the middle of the financial year. Any
sale is expected to raise around AU$1.5 billion," said Dow
Jones.
Mr. Anderson said the group is mulling either a trade sale or
initial public offering in disposing the overseas assets.
JACOBSEN ENTERTAINMENT: Entertainment Firm Exits Administration
---------------------------------------------------------------
Jacobsen Entertainment Limited (JEL) announced that, following a
unanimous vote by creditors at the second creditors meeting in
December, on Wednesday executed a Deed of Company Arrangement
(DOCA) proposed by the Jacobsen family, officially moving the
Company out of administration.
KordaMentha, the Company's administrators, in its report to
JEL's creditors, recommended that creditors accept the
Jacobsens' DOCA. The Jacobsen family has waived its right to be
paid out of the creditors' deed fund for the $3 million owed to
it by JEL (which remains a JEL debt to the family). Also, the
family will fund the payment to employees of 100 percent of
their entitlement. The DOCA provides the potential for unsecured
creditors to receive an ongoing return over the next two years
that will be linked to the profitability of future shows.
Further, the Jacobsen family has provided security for the JEL
bank debt.
JEL Executive Director Michael Jacobsen thanked JEL's creditors,
many of whom have been business partners of the Jacobsens for
several decades, for their unwavering support. He also thanked
JEL's shareholders for their support, noting that many of them
had contacted the Company to wish the Company well.
Mr. Jacobsen said: "We are very pleased with the outcome as it
reflects confidence in JEL and the improving outlook for the
entertainment industry. The Company is currently developing a
forward plan for its business and will announce details to the
market at the appropriate time.
"We have successfully presented world-class entertainment for
many years in Australia and throughout the world including
concerts by major international artists, highly successful
theatrical productions, outdoor stadium spectaculars and the
staging of huge arena productions.
"Now that JEL's financial standing has improved, and given our
strong industry contacts, track record and experience, we have
confidence in the future".
For further information, please contact Sarah Craig at Sefiani
Communications Group on ph. (02) 8920 0700, or email
scraig@sefiani.com.au.
LOY YANG: Offer by Australian Gas-led Consortium Cleared
--------------------------------------------------------
The Great Energy Alliance Consortium (GEAC), the group favored
by lenders of Loy Yang Power to buy the company, received two
favorable decisions last week, according to Asia Pulse.
The first came in the form of a favorable ruling by the Federal
Court, allowing the Australian Gas & Light Company (AGL) to
maintain its 35% stake in the consortium and complete its bid
for Loy Yang A Power station.
The Australian Competition and Consumer Commission had earlier
opposed the deal citing competition concerns. The consumer
watchdog has until the end of January to appeal the court's
findings, the report said. In allowing the deal, the court
disagreed with the anti-trust regulator that acquisition
violates the Trade Practices Act.
Following the court's ruling, lenders of Loy Yang agreed to give
the consortium until February 12 to complete its proposed AU$3.5
billion deal.
"Loy Yang Power is under financial pressure to complete the sale
by February 12 when a AU$500 million bullet payment on its
AU$3.2 billion bank debt is due," Asia Pulse said. "Bankers have
continued to extend the date for the payment in the hope that a
sale could be negotiated."
Loy Yang equity holders accordingly favor the AGL deal over
rival offers from the Malaysian conglomerate Genting Berhad and
U.S. energy group, AES, because it offered better value and
certainty.
"The AGL-backed transaction still needs approvals from the Loy
Yang A banking consortium and the resolution of stamp duty
issues with the Victorian government," Asia Pulse said.
The Federal Court had approved AGL's involvement after the
energy retailer gave certain undertakings, including a pledge
not to hold more than a 35 percent interest in the Loy Yang
plant, or become involved in trading activities.
"The undertakings also ensured AGL had no access to confidential
information of other retailers who dealt with Loy Yang and
ensured dealings between Loy Yang and AGL would be at arms
length," Asia Pulse added.
PASMINCO LIMITED: Credit Line Extension Makes Re-float Possible
---------------------------------------------------------------
The re-listing of collapsed Australian zinc and lead miner,
Pasminco Ltd., could happen soon after its lenders extended the
company's credit facilities, Dow Jones said Wednesday.
The AU$385 million credit facility had kept the company afloat
since it fell into administration two years ago; it expired on
December 31. Creditors are planning for a stock market re-float
and debt conversion to revive the company's sagging fortune.
Administrator Ferrier Hodgson, however, do not favor a re-float
at this time, partly because of the uncertainty until recently
of the extension of the credit facilities.
"Pasminco's bankers hope to be able to re-float the company some
time this year, although this would largely depend on market
conditions," Dow Jones said.
SANTOS LIMITED: Moody's Affirms Unit's Prime-2 Ratings
------------------------------------------------------
Moody's Investors Service affirmed last week the Prime-2 short-
term rating of Santos Finance Limited. The Moody's said its
decision reflects:
(1) An assumption (based on management guidance) that repairs
will be effected within 6-8 weeks;
(2) Operations at Moomba represent 27% of Santos Ltd's
operations - as measured by sales - and other operations are
unaffected;
(3) The substantial cash and standby facilities available to
Santos Ltd to support its business during the time the facility
is undergoing repairs. Such liquidity, together with operating
cash flow from ongoing operations, should comfortably cover all
Santos' planned expenditure for a number of months; and
(4) The presence of a Property Damage and Business Interruption
Insurance policy under which Santos Ltd is expected to claim.
The Prime-2 rating on Santos Finance "reflects the [continued]
unconditional guarantee provided by its parent, Santos Ltd. The
rating further reflects Santos Ltd's relatively stable cash flow
-- generated by its Cooper Basin reserves, its strong operating
experience, and its competitive operating cost position."
The rating agency expects Santos Ltd to generate negative free
cash flow in 2004 "because of its substantial capital
expenditure program and its maintenance of its historic dividend
policy. However, an un-utilized standby liquidity line totaling
AU$525 million - coupled with cash balances - should provide
adequate liquidity, even with the loss of cash flow from
Moomba."
These standby lines, however, have no Material Adverse Change
clauses that could prohibit drawdowns and, in the event of need,
some of the company's capital expenditure can be delayed.
Moody's estimates this facility plus operating cash flow would
be sufficient for a further 3-4 month delay in resumption of
normal operations beyond the currently expected 6-8 weeks.
"This conservatively also assumes that no payments are received
under the insurance policy Santos has," it said. "Furthermore,
new liquidity facilities and other financing totaling in excess
of AU$250 million should be available to Santos by the end of
the first quarter."
Santos Ltd is an oil and gas exploration and production company
headquartered in Adelaide, South Australia.
SANTOS LIMITED: Faces Lawsuits Related to New Year's Day Fire
-------------------------------------------------------------
A law firm in South Australia is preparing to lodge a case
against Santos Limited, the largest shareholder of the Moomba
gas plant that caught fire two weeks ago.
The Thompson Playford law office, according to the Australian
Financial Review, has commenced advising clients on claims and
risk management arising from the incident and would be filing
the cases "within days."
The firm did not identify its clients, but the paper expects
manufacturers to be among those inclined to file lawsuits to
recoup costs relating to lost production or higher gas charges.
==============================
C H I N A & H O N G K O N G
==============================
ASAT HOLDINGS: S&P Assigns 'B' Rating to Proposed ASAT Bonds
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its single 'B'
senior unsecured debt rating to a proposed US$125 million senior
unsecured bond issue by New ASAT (Finance) Ltd, a wholly owned
special purpose vehicle of ASAT Holdings Ltd. (ASAT,
B/Negative/--). The bonds, which will mature in 2011, will be
irrevocably and unconditionally guaranteed by ASAT.
The rating is conditional upon receipt of final documentation
and legal opinions.
The proceeds will be partially used to repay an existing
US$100.75 million senior note issue by ASAT. The balance will be
used for capital spending and as working capital, including
costs incurred in relocating ASAT's operations from Hong Kong to
China.
The rating on ASAT reflects the company's tight liquidity
position, the highly competitive and cyclical nature of the
independent semiconductor packaging industry, and the company's
reliance on the troubled communications sector. These weaknesses
are partially offset by the company's improving cost structure,
advanced packaging technologies, and good relationship with its
customers. As a result of efficiency gains and an improvement in
market conditions, ASAT's operations have improved over the past
year. The capacity utilization of the company's wire bonders had
improved to about 86% by the quarter ended Oct. 31, 2003,
compared with a range of averages of about 42% to 67% per month
during the fiscal year ended April 30, 2003. ASAT became cash
flow positive during the quarter ended July 31, 2003, and is
expected to make a profit in the quarter ending Jan. 31, 2004.
The company is moving its production facilities to China to
achieve further cost reductions. As the semiconductor industry
recovers, ASAT will need to increase its capital spending to
expand production and improve its competitiveness.
The outlook on the rating on the company is currently negative.
Although ASAT's short-term liquidity is adequate, its medium-
term liquidity could come under stress as a result of increasing
capital expenditure and the impending maturation of the
US$100.75 million term debt issue in November 2006. However, if
the proposed US$125 million bond issue proceeds successfully,
the outlook on the rating is likely to be changed to stable to
reflect improved liquidity and the subsequent extension of the
company's debt maturity. Such a rating change would also reflect
the likely improvement in ASAT's operating cash flow that is
expected as a result of the recovery of the wider semiconductor
industry. The possible change in the outlook on the rating would
be based on the assumption that ASAT's management will continue
to fund the company's growth prudently. Overspending or higher
than expected cash burn could have negative implications on the
rating and possibly the outlook.
For more information, contact:
Huiyi Qu (Hong Kong)
Phone: (852) 2533-3503
John Bailey (Hong Kong)
Phone: (852) 2533-3530
CARGO-LAND WAREHOUSE: Winding up Hearing Set February 18
--------------------------------------------------------
The High Court of Hong Kong will hear on February 18, 2004 at
9:30 a.m. the petition seeking the winding up of Cargo-Land
Warehouse Limited.
ATL Logistics Centre Hong Kong Limited of Unit 13108S, 13th
Floor, ATL Logistics Centre-B, Berth No. 3, Kwai Chung Container
Terminal, Hong Kong filed the petition on December 8, 2003.
Wilkinson & Grist represents the petitioner.
Creditors and other interested parties are encouraged to attend
the hearing. They only need to notify in writing Wilkinson &
Grist, which holds office on the 6th Floor, Prince's Building 10
Charter Road, Central Hong Kong.
T.S.T. GARMENTS: Bank of China Initiates Winding up Proceedings
---------------------------------------------------------------
The High Court of Hong Kong will hear on March 10, 2004 at 9:30
a.m. the petition seeking the winding up of T.S.T. Garments
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 December 29, 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, 12/F., Wheelock
House, 20 Pedder Street, Central Hong Kong.
=================
I N D O N E S I A
=================
BANK LIPPO: IBRA Receive Bids From Three Investors
--------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) on January 7th
2004 has received Preliminary bid documents from three
prospective investors for the divestment program of 52.05 stakes
of the Republic Indonesia's shares in PT Bank Lippo Tbk. (Bank
Lippo).
The three prospective investors are:
1. Swissasia Global Consortium, members are:
- Swissfirst Bank AG
- Chaffron Limited (own by 100 percent Raiffeisen
Zentralbank Osterreich AG)
- Matrix Asia Holdings Limited
- ASM Investment Ltd.
- Ferrell Opportunity Capital Ltd.
2. Eurocapital Asia Limited Consortium, members are :
- Export & Industry Bank
- Batavia Financial Services Fund II
- Euro Financial Fund Ltd
3. Platinum Investment Holdings Limited Consortium, members are:
- Asia Financial Holdings Limited
- Platinum Business Inc.
- Kenneth Tan
Assisted by the Committee of Independent Consultant and
Financial Advisor and Legal Advisor, IBRA will then examine the
offering letter to shortlist the bidders.
The criteria for bidder short listings include:
No. Criteria
1. Bidder Quality
- Financial Capacity
- Finance Institution's Experience
- Experience in Merger and Acquisition
2. Strategic Vision and Commitment
- Strategic Vision for Lippo Bank
- Commitment to Lippo Bank and Indonesia
3. Preliminary Bid Price
- Preliminary bid price (indication)
- Conditions related to preliminary bid
price
Based on the results of reviews and evaluations, IBRA has
selected Swissasia Global Consortium as the shortlisted bidder
for Lippo Bank Divestment Program. Meanwhile Eurocapital Asia
Limited Consortium and Platinum Investments Holdings Limited
Consortium have been declared ineligible as shortlisted bidders
because their evaluation results are lower than required by
IBRA.
The next step after bidder shortlisting is as follows:
No. Activities Time
1. Due diligence by Week II-Week III Jan. 2004
shortlisted bidder and
presentation by management
2. Final bid documents Week IV Jan. 2004 submission
3. Notification to Preferred Week IV January 2004
Bidder
4. Fit & Proper Test by Bank Week IV January -
Indonesia Week II February 2004
5. Winner notification Week II February 2004
6. Transaction Closing Week III February 2004
Note:
IBRA reserves the right to change the schedule based on the
situation and condition during the divestment process without
prior notice.
The Lippo Bank divestment program is expected to get the right
partner to develop and enhance Lippo Bank's performance as well
as rendering positive contribution to the banking sector and
Indonesia economic recovery.
IBRA will always keeps the commitment to carry out the process
of Divestment Program of Republic Indonesia's shares in Lippo
Bank in optimal manner with due reference to the principle of
transparency, accountability, fairness, and consistency in its
implementation. This is in accordance with the prevailing
regulation, to secure confidence from investors and the general
public.
BANK LIPPO: Philippine Bank Joins Consortium to Acquire Bank
------------------------------------------------------------
The Philippine Export and Industry Bank (Exportbank) is part of
a consortium led by Eurocapital Asia, Batavia Service Fund II
and Euro Growth Fund to acquire a 52.05 percent stake in PT Bank
Lippo in Indonesia, the Manila Bulletin reports, citing
Exportbank President Benjamion Castillo. Castillo said
Exportbank has sufficient funds to participate in the
acquisition of the Indonesian bank. In 2002, Exportbank acquired
Urban Bank, a medium-sized Philippine commercial bank, which
closed in 2001.
BANK RAKYAT: Financial Strength Rating Upgraded to D-
-----------------------------------------------------
Citing "improved financial fundamentals," Moody's Investors
Service raised last week the financial strength rating of Bank
Rakyat Indonesia to D- from E+ and assigned them a stable
outlook.
"The upgrade reflects BRI's improved financial fundamentals,
arising from its renewed focus on its core micro-lending, SME
and consumer businesses. Specifically, the bank enjoys the
highest net interest margin of its peer group, above industry
average asset quality, and sufficient capital to absorb the
potential risks in its balance sheet," Moody's said.
Only the bank financial strength rating was affected by this
latest rating action. These ratings were unaffected:
(i) Subordinated debt rating of B3;
(ii) Long-term/short-term deposit ratings of B3/Not-Prime.
These ratings carry a stable outlook.
Moody's advised the bank to upgrade its risk management systems
and internal controls and processes and use them as platforms
for growth. It noted the projected stiff competition in the
micro and retail segments as other banks attempt to penetrate
the sector. The rating agency also expressed concern about the
bank's vulnerability to political pressures.
"The government had been the sole shareholder of BRI until an
initial public offering in November 2003, but still remains the
majority shareholder, with a 60% stake. Thus, it could exert
considerable influence on the bank," Moody's said.
Founded in 1895, Bank Rakyat Indonesia's primary role is to
promote the country's micro-finance and SME sectors. It is now
Indonesia's fourth largest bank in terms of assets and deposits,
controlling about 9% of system deposits. It holds approximately
29% of its assets in government recapitalization bonds, 77% of
which are fixed rate.
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J A P A N
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MATSUSHITA ELECTRIC: Unveils Corporate Management Strategies
------------------------------------------------------------
To enhance its contribution to society in this new era,
Matsushita Electric Industrial Co. introduced its three-year
management plan, "Value Creation 21" with a theme of
"deconstruction" (restructuring) and "creation" (growth
strategy) in April 2001, aiming at transforming Matsushita into
a lean and agile "Super Manufacturing Company" for the 21st
century, a Company statement said in a disclosure to the
Securities and Exchange Commission. To this end, the Company has
implemented various initiatives aimed at establishing new
business models to create a value chain between devices,
finished products, and services. As part of Value Creation 21,
the Company has thus far implemented various structural reforms,
including reforms of the domestic consumer sales and
distribution structure, manufacturing reforms, research,
development and design (R&DD) reforms and employment
restructuring.
Beginning in January 2003, Matsushita launched a new group wide
organizational structure with business domain companies
designated as strategic units, to eliminate duplication of
businesses within the Matsushita group. With this new
organizational structure, business domain companies are
responsible for R&D, manufacturing and sales within their
respective clearly defined business areas, thereby allowing them
to fully achieve growth strategies. Furthermore, from fiscal
2004, the Company also inaugurated a management system that
focuses on two business performance evaluation standards for
each business domain Company -- Capital Cost Management (CCM),
which measures capital efficiency, and cash flows, which
indicates a Company's ability to generate cash. These standards
are more closely related to those used by capital markets, and
are intended to result in management that increases corporate
value.
MITSUBISHI MOTORS: R&I Downgrades to Rating to BB-
--------------------------------------------------
Rating and Investment Information, Inc. (R&I) has downgraded the
following ratings of Mitsubishi Motors Corporation. The ratings
remain on the Rating Monitor scheme with a view to downgrading
them:
Senior Long-term Credit Rating
R&I RATING: (BB-); Downgraded from (BB);
Remains on the Rating Monitor scheme with a view to downgrading
Long-term Bonds (3 series)
R&I RATING: (B+); Downgraded from (BB);
Remains on the Rating Monitor scheme with a view to downgrading
Domestic Commercial Paper Programme
R&I RATING: b; Downgraded from (a-3);
Removed from the Rating Monitor scheme
ISSUE: Bonds Rated Issue Date Redemption Issue Amount (mn)
Unsec. Str. Bonds No. 5 May 28, 1997 May 28, 2009 Yen 30,000
Unsec. Str. Bonds No. 6 May 28, 1997 May 28, 2007 Yen 10,000
Unsec. Str. Bonds No. 7 May 28, 1997 May 28, 2004 Yen 20,000
RATIONALE:
In North America, Mitsubishi Motors has completed disposal of
losses which included a loan loss allowance increase of 50.6
billion yen for the impairment of sales finance assets during
the September 2003 midterm. However, because the Company has
suspended further high-risk loans, sales of new automobiles have
fallen into a slump. While domestic sales have begun to pick up,
however, they have concentrated mainly on the small Colt model
and are unlikely to result in a substantial improvement in
earnings. While the Company secures consistent earnings in Asia
and other regions, it has not been able to come up with a plan
for improvement that will bring quick relief to its automotive
business in general.
On the financial side, net interest bearing debt in the
automotive business climbed from 506 billion yen to 726 billion
yen in the half year from the end of March to the end of
September 2003 as a result of additional capital injections in
its North American sales finance companies. In addition, equity
capital dropped to 180.9 billion yen in the same period. It is
necessary to pay attention whether the Company can accomplish
the earnings plan in regards to the possibility of recovery of
134.1 billion yen in deferred tax assets. Mitsubishi Motors is
planning to sell off assets including securities in the March
2004 latter half year but its ability to create a healthy sales
cash flow has declined due to flagging sales. If this situation
persists over the long term, it will also have an impact on the
cash flow.
The severity of the operational environment in North America is
increasing as the entire industry becomes caught up in excessive
competition based on the sales promotion incentives, and
operational risk is increasing. On the other hand, the
difference in financial resilience between Mitsubishi Motors and
other automotive companies is widening further and this
situation may impede efforts to promote structural reform. In
view of these factors, R&I have downgraded the Senior Long-term
Credit Rating to BB-. The rating will remain on the Rating
Monitor scheme with a view to down grading. R&I have also
downgraded the Commercial Paper Program to a "B" rating and have
removed it from the rating monitor scheme. The Company's
financial composition on an unconsolidated basis has
deteriorated during the September 2003 midterm as a result of an
increase in interest bearing debt and consequently, R&I has
placed a separate rating for unsecured straight bonds at B+ in
order to reflect a one notch subordination due to recovery risk.
The challenge for Mitsubishi Motors in the days ahead lies in
whether it can move quickly to consolidate new reconstruction
plans through measures that would include a cooperative
relationship with Daimler Chrysler.
RESONA HOLDINGS: Unveils Secondary Sales of Common Shares
---------------------------------------------------------
Resona Holdings Inc. (Resona HD, President: Kenji Kawada) has
determined as follows in connection with secondary sales of its
common sales (the shares) held by its subsidiaries and
affiliates in overseas markets and solicitation for purchase of
the Shares to less than 50 offerees in Japan.
1. Number of Shares to be offered and sold:
Common shares of Resona HD: 239,024,000 shares (planned)
This is the maximum number of shares to be sold. The number
of shares to be sold will be determined by the Price
Determination Date, taking into consideration such factors as
demand for the shares and other factors.
2. Selling shareholders and number of shares to be sold:
Resona Bank Ltd. 184,435,000 shares
The Kinki Osaka Bank, Ltd. 47,642,000 shares
The Nara Bank, Ltd. 376,000 shares
Daiwa Guarantee Co., Ltd. 3,919,000 shares
Kinki Osaka Shinyo Hosho Co. Ltd. 1,210,000 shares
Daiwagin Card Co. Ltd. 876,000 shares
Daiwagin Sogo System Co. Ltd. 420,000 shares
Osaka Card Service Co. Ltd. 128,000 shares
Osaka Card DC Co. Ltd. 18,000 shares
The number of shares to be sold by each selling shareholder is
subject to change.
3. Sale Price
To be determined on any date between Friday, January 9, 2004 and
Thursday, January 15, 2004 (the "Price Determination Date),
taking into account the market price of the shares, demand for
the shares, and other factors.
4. Total Amount of Sale
Not fixed yet.
5. Subscription Period
On the Price Determination Date (Japan Time)
6. Delivery Date
The third business day following the Price Determination Date
(planned)
7. Names of Underwriters
Nomura Securities Co., Ltd. and Merril Lynch Japan Securities
Co. Ltd.
The purpose of this press release is to make a general public
announcement of the secondary sales held by Resona HD's
subsidiaries and affiliates. It has not been prepared for the
purpose of soliciting investments in the shares. Also, this
announcement does not constitute an offer of securities for sale
in the United States. Securities may not be offered or sold in
the United States unless they are registered under the U.S.
Securities Act of 1933 or exempt from registration.
8. Sales of Overseas Markets
The aforementioned underwriters will purchase all of the shares
from the aforementioned selling shareholders and will sell them,
through their overseas affiliates, in overseas (mostly European,
and excluding the U.S.) markets.
9. Sales in Japan
The aforementioned underwriters may solicit purchase of the
shares to less than 50 prospective investors in Japan with
respect to a part of the aforementioned number of shares to be
sold.
10. Stabilizing Transactions
With respect to the anticipated transactions described in items
1 through 10 above, an Extraordinary Securities Report was
submitted on January 8, 2004 in accordance with the Securities
and Exchange Law of Japan.
Not:
Of the shares specified above, those held by Resona HD's
subsidiaries as defined in the Commercial Code of Japan are
required to be sold within a reasonable period of time. Also,
the shares held by Resona HD's consolidated subsidiaries are
deducted from the qualifying capital in calculation of Resona
HD's consolidated capital adequacy ratio.
For a copy of the press release, go to
http://www.resona-hd.co.jp/e-ir/pdf/i_01/040108_1a.pdf
TOSHIBA CORPORATION: Markets New Focus Measurement Technology
-------------------------------------------------------------
Toshiba Corporation announced Wednesday that it would market
focus measurement technology that greatly improves the focal
measurement performance of semiconductor exposure systems. The
technology features an innovative photomask pattern that reduces
measurement errors by approximately 90 percent.
The technology has a Japanese patent and was awarded a U.S.
patent. This extensive patent protection opens the way for
Toshiba to promote marketing of a focus-measurement tool based
on the technology.
Focus measurement tools measure the focal accuracy of
semiconductor exposure systems or steppers, which expose circuit
patterns on wafers. Toshiba's new tool is a focus test photomask
in which grooves have been cut. Two thirds of the surface area
between each groove is shielded with a chrome deposit, forming
three distinct areas: the chrome shield, the uncoated glass
area, and the grooved area. The latter two are the same width.
When a beam of light is shone through the glass, the groove
diffracts it, causing phase shift that can be used to measure
the accuracy of the exposure on the silicon wafer. Perfect focus
produces a straight line, while distortion from the true shows
the degree of focal inaccuracy and the direction of the
inaccuracy. The measurement error of the new tool is
approximately 3 nanometers, by far the lowest recorded: current
measurements have a tolerance of approximately 30 nanometers.
Commenting on the new tool. Mr. Shunichi Hiraki, General
Manager, Process & Manufacturing Engineering Center of
Semiconductor Company at Toshiba Corporation said. "Now that we
have secured strong patent protection, we can develop the
commercial potential of the focus measurement tool. Use in our
facilities has already shown its value, and we expect to meet a
positive response from device makers and stepper makers alike.
We look forward to growing this new business area."
About Toshiba Corporation
Toshiba Corporation is a leader in the development and
manufacture of electronic devices and components, information
and communication systems, consumer products and power systems.
The Company's ability to integrate wide-ranging capabilities,
from hardware to software and innovative services, assure its
position as an innovator in diverse fields and many businesses.
In semiconductors, Toshiba continues to promote its leadership
in the fast growing system-on-chip market and to build on its
world-class position in NAND flash memories, analog devices and
discrete devices. Toshiba has approximately 166,000 employees
worldwide and annual sales of over US$47 billion. For further
information, please visit the Toshiba Corporation home page at:
www.toshiba.co.jp/index.htm
Contact:
Toshiba Corporation
Corporate Communications Office
1-1-1, Shibaura, Minato-ku, Tokyo, 105-8001, Japan
Telephone: 3-3457-2105
Fax: 3-5444-9202
e-mail: press@toshiba.co.jp
home page: http://www.toshiba.co.jp/index.htm
=========
K O R E A
=========
KOREA THRUNET: Creditors May Delay Sale
---------------------------------------
Creditors may delay the sale of Korea Thrunet Co. to gain an
upper hand in negotiations with potential buyers, Yonhap News
reported on Thursday. On Friday, creditors of Thrunet will hold
a meeting to give final approval to the Company's self-rescue
plan, which outlines how it will deal with its 810 billion won
(US$684 million) in debt.
LG CARD: Given 1-day Grace Period on Maturing Debt
--------------------------------------------------
LG Card Co. Ltd has been given a one-day grace period for its
100 billion won ($84.3 million) in maturing commercial paper,
Woori Bank, a major creditor of the card issuer, according to
Reuters. The rollover allows LG Card to avert a default on its
debt while its creditors and parent LG Group debate the final
version of a proposed $4.2 billion rescue package.
LG CARD: Bailout Still Unpredictable
------------------------------------
The fate of embattled credit card issuer LG Card Co. remained in
jeopardy after its creditors failed to agree on ways to
normalize the debt-ridden Company by a Wednesday deadline, Asia
Times reported on Friday. However, banking sources said
authorities and the creditors have narrowed differences over
providing a 5.15-trillion-won (US$4.3 billion) bailout package
for LG Card.
LG CARD: MOFE Requests LG Group to Participate in Solving Fiasco
----------------------------------------------------------------
Korean Finance and Economy Minister Kim Jin-pyo has requested
the LG Group to participate in getting unit LG Card back on its
feet, the Maeil Business News reports. Kim said that as
creditors will likely suffer losses incurred by LG Card, the LG
Group should also take responsibility regarding the financial
problems of LG Card. He added that privatization of local
financial institutions will be pursued according to schedule.
LG CARD: Suspends Cash Payments But Escapes Default
---------------------------------------------------
LG Card suspended cash advances to customers but escaped default
on maturing debt as creditors offered a one-day lifeline to
South Korea's largest card issuer, Channel News Asia reports.
Uncertainty over the future of LG Card shook stock and bond
markets and fanned fears that a possible bankruptcy could
trigger a credit crunch affecting the entire South Korean
financial system, analysts said.
An unnamed LG Card spokesman said repayment of 462.5 billion won
(390 million dollars) has been rescheduled, he said. "We were
told to repay the debts by the end of business Friday but I
think the creditors would allow us to roll over our debts for a
while," he added.
SK GLOBAL: Wants to Pay Employees US$1.2M in Severance Benefits
---------------------------------------------------------------
SK Global America Inc.'s principal business involves trade-
related activities, including the importing, exporting,
financing and wholesale and general distribution of steel,
grain, chemicals, textiles and garments, telecommunications
equipment and a variety of other goods in North America and
overseas. The trading businesses are heavily dependent on the
Debtor's parent, SK Networks Co. Ltd., formerly known as SK
Global Co. Ltd.
In accordance with the Global Restructuring, SK Networks agreed
with its and the Debtor's largest creditors that it would no
longer support the Debtor's trading operations. Consequently,
the Debtor determined to discontinue its trading operations and
close out its existing trading positions and contracts. Over
the next several months, the Debtor will terminate employees no
longer necessary to its operations. The Debtor currently
employs 35 employees who support its various trading divisions
and administrative functions at its corporate headquarters.
By this motion, the Debtor seeks the Court's permission to pay
severance, specifically, COBRA benefits and outplacement
assistance to its employees, which will be paid on termination.
Scott E. Ratner, Esq., at Togut, Segal & Segal LLP, in New York,
relates that, before the Petition Date, the Debtor paid
severance, COBRA and outplacement benefits to its employees who
were involuntarily terminated because their business unit was
shut down. The Debtor's policy to pay these benefits was made
as a sign of goodwill and in appreciation of the loyalty
displayed by the employees in remaining with the Debtor in the
face of imminent termination.
The Debtor's Severance Package provides:
A. Severance Payments -- $1,254,633 total amount
Position Severance Payment Remarks
-------- ----------------- -------
Below Manager 2 weeks base salary for Min. Amt:
every year of service 0 to 2.5
years
of service --
1 additional month's base -- 2 mos. base
salary for each 5-year salary
period of service.
2.5 to 5 years
of service --
3 mos. base
salary
Manager 1 month base salary for Min. Amt: 6
each year of service mos. base
salary
B. Health Insurance (COBRA) -- $129,449 total expense
Position Severance Payment Remarks
-------- ----------------- -------
Below Manager Debtor pays first 3 mos. None
of COBRA expense beyond
termination
Manager Debtor pays first 6 mos. None
COBRA expense beyond
termination
C. Outplacement Assistance -- $10,000 total expense
The Debtor provides three months of Outplacement
Assistance after written notification of employment termination
is issued. The Outplacement Assistance includes some
considerations like providing employees with flexible working
hours or days, assistance for some of the programs like group or
individual interviewing workshops, counseling, and job search
cost.
D. Profit-Share for Tony Zaweski -- $10,920
Pursuant to an Employment Agreement between Tony Zaweski
and the Debtor, Mr. Zaweski is entitled to a percentage of
the annual Ordinary Profit arising from the operation of
the Vista Grain division during the applicable employment
period. Mr. Zaweski and the Debtor agreed that the
Operating Profit for the Vista Grain division for 2003 is
$546,000. Pursuant to the Employment Agreement,
Mr. Zaweski is entitled to 2 percent of $546,000 or
$10,920.
According to Mr. Ratner, the Debtor merely wants to continue its
prepetition practice of making various payments to the Employees
who will be terminated upon the wind down of its business units.
The Debtor anticipates that aggregate severance payments to the
Employees will reach $1,500,000. As consideration for the
payment of the Severance, each of the Employees will be required
to execute a release discharging the Debtor from any claim that
the Employee may have against the Debtor and its estate.
Given the importance of the Employees to obtaining maximum value
for the Debtor's assets during a wind down, the Severance
payment should be allowed. Mr. Ratner explains that the
Severance payment serves as incentive for the Employees to
remain with the Debtor until each Employee's business unit is
shut down or the Debtor determines that the Employee's services
are no longer required.
Mr. Ratner points out that the Employees could have sought
alternative employment immediately upon the Debtor's decision to
file a voluntary Chapter 11 petition. But, at the Debtor's
urging, they remained in the Debtor's employ, enabling the
debtor to maintain the value of its assets. It is essential
that the Employees continue to focus their efforts in supporting
and Debtor's operations during the wind down and obtain the
maximum value for those assets.
The Debtor's corporate support Employees provide essential
administrative and accounting functions and are essential to the
wind down of the Debtor's operations. The Debtor's ability to
maximize asset recoveries and reconcile claims asserted against
it will depend on the continued support of its corporate support
staff. The corporate support employees possess unique knowledge
of the Debtor's business units, including its finances, accounts
receivable, accounts payable, customers, vendors, and other
matters concerning its operations. If the Debtor loses this
invaluable information resource, it will be extremely difficult
for the Debtor to wind down its businesses and realize the
maximum value for the assets, conduct an analysis and resolution
of the claims asserted by customers, suppliers or vendors, and
perform other tasks that are required to benefit its estate and
maximize the return to creditors. (SK Global Bankruptcy News,
Issue No. 10; Bankruptcy Creditors' Service, Inc., 215/945-7000)
SK GROUP: Prosecution Seeks Arrest Warrant for Chairman
-------------------------------------------------------
The prosecution sought an arrest warrant for SK Group Chairman
Son Kil-seung on charges of bribery and embezzlement, Yonhap
News reports. Son Kil-seung will appear at a Seoul court on
January 9 to answer questions about charges specified in the
warrant.
===============
M A L A Y S I A
===============
AOKAM PERDANA: Issues Rescue Scheme Update
------------------------------------------
Aokam Perdana Berhad refer to the announcements made on behalf
of the Board of Directors (Board) of Aokam on 19 September 2003,
14 October 2003 and 18 December 2003 in relation to the
Proposals.
On behalf of the Board of Aokam, Southern Investment Bank Berhad
(SIBB) is pleased to announce that the Securities Commission has
vide its letter dated 31 December 2003, which was received on 5
January 2004, and its facsimile dated 8 January 2004, approved
the Proposals as follows:
(i) Proposed recapitalization of Aokam which involves, amongst
others, reduction of 95 percent of the existing issued and paid-
up share capital of Aokam (i.e. reduction of par value of each
existing ordinary share of RM1.00 each (Share) to RM0.05 each,
and subsequent consolidation of twenty (20) ordinary shares of
RM0.05 each into one (1) Aokam Share (Proposed Capital Reduction
and Consolidation), as proposed;
(ii) Proposed cancellation of the entire share premium account
of Aokam totalling RM15,543 and the utilization of the resulting
reserves to write-off against Aokam's accumulated losses from
RM120,099,203 to RM120,083,660 (Proposed Share Premium
Reduction), as proposed;
(iii) Proposed debt settlement involving four (4) schemes of
arrangement between Aokam, Aokam Industries Sdn Bhd, Pembangunan
Papan Lapis (Sabah) Sdn Bhd and Pacific Wood Products Sdn Bhd,
with their respective creditors (Proposed Debt Settlement), as
proposed;
(iv) Proposed acquisition of the entire equity interest in Key
Heights Sdn Bhd (KHSB) from Amalan Menang Sdn Bhd (AMSB), Madam
Ong Sok Hean and Samudera Sentosa Sdn Bhd (Samudera) for a
purchase consideration of RM94,536,000 to be satisfied by the
issuance of 71,036,000 new Aokam Shares at par and 23,500,000
Irredeemable Cumulative Convertible Preference Shares of RM1.00
each (ICCPS) (Proposed Acquisition), as compared to the proposed
issuance of 23,500,000 ICCPS at par together with 23,500,000
warrants;
(v) Proposed renounceable rights issue of 14,597,646 new Aokam
Shares (Rights Shares) at an issue price of RM1.00 per Rights
Share together with 14,597,646 free detachable warrants
(Warrants) on the basis of seven (7) Rights Shares for every two
(2) existing Aokam Shares held after the Proposed Capital
Reduction and Consolidation and one (1) new Warrant for every
one (1) new Rights Share subscribed (Proposed Rights Issue), as
proposed;
(vi) Proposed special issue of 10,000,000 new Aokam Shares
together with 10,000,000 free detachable Warrants to Bumiputera
investors at RM1.00 per Aokam Share (Proposed Special Issue), as
proposed;
(vii) Proposed employees' share option scheme for eligible
employees and executive Directors of the Aokam Group to
subscribe for up to 10 percent of the issued and paid-up share
capital of the Company (Proposed ESOS), as proposed; and
(viii) Proposed listing of and quotation for on the Main Board
of the Kuala Lumpur Stock Exchange (KLSE), as proposed:
(a) Up to 230,524,430 new Aokam Shares to be issued pursuant to
the Proposed Acquisition, Proposed Debt Settlement, Proposed
Rights Issue, Proposed Special Issue, upon conversion of the
ICCPS and upon exercise of the Warrants and ESOS options;
(b) 23,500,000 Aokam ICCPS to be issued pursuant to the Proposed
Acquisition; and
(c) 24,597,646 Aokam Warrants to be issued pursuant to the
Proposed Rights Issue and Proposed Special Issue.
The SC has taken note that upon completion of the Proposed
Rescue Scheme, the vendors of KHSB will place out their
respective Aokam Shares to meet the 25 percent public
shareholding requirement.
The SC has also noted that upon implementation of the Proposed
Rescue Scheme, the proceeds arising from the Proposed Rescue
Scheme will be utilized as set out in Table 1 below.
However, the following conditions have to be met for the said
utilization of proceeds:
(i) The approval from Aokam shareholders must be obtained for
the utilization of proceeds from the Proposed Rescue Scheme and
any variation of more than 25 percent from the original
utilization of proceeds. If the variation is less than 25
percent, appropriate disclosures must be made to Aokam
shareholders;
(ii) Any extension of time for the utilization of the proceeds
from the period determined by Aokam should be approved by a
final resolution by the Board of Aokam and should be fully
disclosed to the KLSE; and
(iii) Appropriate disclosures pertaining to the status of the
utilization of proceeds should be made in the Quarterly Report
and Annual Report of Aokam until the said proceeds are fully
utilized.
The SC's approval on the Proposals is also conditional upon the
following conditions:
(i) Aokam is required to appoint an independent audit firm
(which is experienced in investigative audit and is not the
existing or previous auditor of the Aokam Group) within two (2)
months from the date of the SC's approval letter to conduct an
investigative audit on the past losses of the Company. The Board
of Aokam and its management are required to provide full co-
operation in the investigative audit process. The Company is
also required to take the necessary/appropriate measures to
recover the past losses. Based on the findings of the
investigative audit, the Company is required to report to the
relevant authorities in the event of any breach of laws,
regulations, rules, guidelines and/or the Company's memorandum
and articles of association by any member of the Company's Board
and/or any other party that had caused such losses in the
Company. The investigative audit is to be completed within six
(6) months from the date of appointment of the independent audit
firm and an appropriate announcement should be made in respect
of the findings of the investigative audit. Four (4) copies of
the said investigative audit report must be forwarded to the SC
after the completion of the investigative audit;
(ii) Full provision has to be made for trade debts of the KHSB
Group which:
(a) are under dispute;
(b) legal action has been initiated/taken; and
(c) have been outstanding for more than six (6) months.
The Board of KHSB is required to provide a written confirmation
to the SC that all trade debts that have exceeded the credit
period can be recovered and provisions for doubtful and bad
debts have been made in the financial accounts and financial
forecast of the KHSB Group as mentioned above, prior to the
issuance of the circular to shareholders of Aokam/prospectus of
Aokam;
(iii) The vendors of KHSB are required to provide compensation
for any bad debts, where the appropriate provision was not made
for the said bad debts or disclosure was not made in the
circular to shareholders/prospectus regarding the said bad
debts;
(iv) All debts between the KHSB Group and its related companies,
incurred not within the ordinary course of business of the KHSB
Group, has to be settled prior to the issuance of the circular
to shareholders of Aokam/prospectus of Aokam;
(v) Any future business transaction between the Aokam Group and
companies related to the Directors of Aokam must be conducted on
an arm's length basis and not based on the terms that are
unfavorable to the Aokam Group. The Audit Committee of Aokam has
to observe the terms of the business transactions and the
Directors of Aokam must disclose any related business
transaction, if any, every year in the Annual Report of Aokam;
(vi) The following disclosures must be made in the circular to
shareholders of Aokam/prospectus of Aokam:
(a) Full explanation on the factors, which caused Aokam's losses
in the past years as well as the measures that were/will be
taken to recover the said losses;
(b) Risk management plan of Aokam pursuant to the Proposed
Rescue Scheme;
(c) Management succession plan to ensure the continuation of the
management of the Company following the Proposed Rescue Scheme;
(d) The total trade debts of the KHSB Group, ageing analysis of
the said trade debts and debts that have exceeded the credit
period. The Directors of KHSB are required to provide
comments/statements in relation to the recoverability of the
trade debts, which have exceeded the credit period;
(e) Information on situations which can give rise to conflicts
of interest with the Aokam Group (including KHSB) and measures
that have been/will be taken to overcome such situations; and
(f) Information on the timber extraction agreements and timber
purchase agreements;
(vii) Full provision shall be made for tax penalty, which may be
imposed on the KHSB Group pursuant to the delay in submitting
the assessment form by the KHSB Group. The vendors of KHSB are
required to provide compensation for any tax penalty to be
imposed, where appropriate provision is not made for the said
penalty;
(viii) Moratorium is imposed on the vendors of KHSB for the
securities to be received as sale consideration of KHSB
(Consideration Securities). The vendors of KHSB are not allowed
to sell, transfer or assign their shares up to 50 percent of the
Consideration Securities for one (1) year from the date of
listing of the Consideration Securities. The vendors of KHSB are
required to disclose the total Consideration Securities held by
them, which are subject to the moratorium, before the Proposed
Rescue Scheme is implemented;
(ix) Extension of time for the timber extraction agreement
between Wincohasil Sdn Bhd and Rakyat Berjaya Sdn Bhd, as well
as the timber purchase agreement between Bizkaya Sdn Bhd and
Sabah Berjaya Sdn Bhd has to be made before the issuance of the
circular to the shareholders of Aokam;
(x) Compliance with all the relevant requirements under SC's
Policies and Guidelines on Issue/Offer of Securities (SC
Guidelines), especially requirements under Chapter 5,9,12,13 and
Guidance Note 13 of the SC Guidelines; and
(xi) Compliance with the conditions imposed by other relevant
authorities, if any.
An extract of the SC's letter in relation to the conditions
above is set out below.
In the event of any inconsistency, the Bahasa Malaysia version
of the conditions shall prevail.
SIBB and Aokam are required to provide written confirmation to
the SC on the compliance with all the above terms and conditions
upon completion of the Proposals.
SIBB and Aokam are also reminded that any breach or non-
compliance of the terms or conditions imposed by the SC, as
stated in the above paragraphs, is considered to be an offence
under the Securities Commission Act 1993 (SCA) and is subject to
penalties as provided for under the said SCA.
On behalf of the Board of Aokam, SIBB is also pleased to
announce that the SC had vide its letter dated 31 December 2003,
which was received on 7 January 2004, approved the proposed
exemption to AMSB, Madam Ong Sok Hean, Samudera and parties
acting in concert with them namely, Mr. Sy Choon Yen, Ms Looh
Yen Loo, Mr. Loke Kar Wing and Ms Ong Dea Bea from the
obligation to undertake a mandatory offer to acquire the
remaining voting shares in Aokam after the Proposals under
Practice Note 2.9.3 of the Malaysian Code on Takeovers and
Mergers, 1998.
This announcement is dated 8 January 2004.
Table 1 Utilization of proceeds
Acquisitions for business expansion/diversification
14,597,646
Working capital
7,500,000
Estimated expenses for the proposals
2,500,000
Total
24,597,646
KEMAYAN CORPORATION: Issues Restructuring Update
------------------------------------------------
For consistency, the abbreviations used throughout this
announcement shall have the same meaning as previously defined
in Kemayan Corporation Berhad (KCB)'s announcement dated 22 July
2003.
Public Merchant Bank Berhad refer to the announcements on 22
July 2003, 15 August 2003 and 28 November 2003 in respect of the
Proposed Restructuring Scheme.
PMBB, on behalf of the Board of KCB, wishes to announce that the
SC had vide its letter dated 6 January 2004, which was received
on 7 January 2004, approved as proposed, a variation to the
approval condition which was set out in the SC letter dated 21
November 2003 i.e. the profit after tax guarantee by the vendors
of Amber Resources Sdn Bhd (Amber) and CDM Sdn Bhd (CDM) as
follows:
Profit/(loss) after tax As approved earlier The proposed
variation
RM'000 that has been
approved
RM'000
Financial year ending
31 March 2005
-Amber 4,492 3,336
-CDM (621) 535
Total 3,871 3,871
Financial year ending
31 March 2006
-Amber 4,757 3,489
-CDM (592) 676
Total 4,165 4,165
The remaining approval conditions imposed by the SC vide its
letter dated 16 July 2003 and 21 November 2003 is maintained.
LII HEN: U.S. Units Enter Liquidation
-------------------------------------
Further to our announcements made on 01 October 2003 and 25
August 2003, on the steps taken by Lii Hen Industries Bhd to
cease operation of losing U.S. subsidiaries, Mega Creations,
Inc., and its subsidiary Home Creations, Inc. with the objective
of protecting the interest of the Company and its shareholders,
the Company announced that the application documents pertaining
to the dissolution for the above U.S. subsidiaries have been
completed on 6 January 2004.
FINANCIAL EFFECTS ON THE EXERCISE
The voluntary dissolution of the above US subsidiaries is not
expected to have any material effect on the Group's financial
performance for the year ending 31 December 2004.
INTEREST OF DIRECTORS, SUBSTANTIAL SHAREHOLDERS AND PERSONS
CONNECTED
None of the Lii Hen Directors, Substantial Shareholders and
persons connected to Directors and/or Substantial Shareholders
of Lii Hen is deemed interested directly or indirectly in the
above exercise.
SELOGA HOLDINGS: Clarifies Takeover Report
------------------------------------------
Seloga Holdings Berhad refers to the letter dated 7 January 2004
from Malaysia Securities Exchange Berhad (MSEB) on unusual
market activity and pursuant to paragraph 9.11 of the Listing
Requirements of the MSEB pertaining to response to unusual
market activity under the Corporate Disclosure Policy, the
Directors of Seloga Holdings Berhad confirmed that they are not
aware of any material situations/events that have not been
previously disclosed or any other reasons that could have
contributed to the increase in price and high volume in the
Company's shares recently other than the two articles that
appeared in the New Straits Times dated 22 December 2003 with
the caption "Seloga may resume prior uptrend move" and The Edge
Financial Daily dated 7 January 2004 with the caption "Seloga
Holdings" respectively, copies of which are attached.
The Directors of Seloga wish to clarify that to the best of
their knowledge and belief, they are not aware that the Company
is a take-over candidate by a prominent corporate figure.
Query Letter content:
The Malaysia Securities Exchange Berhad draw the Company's
attention to the sharp increase in price and high volume in
Seloga's shares recently.
In accordance with paragraph 9.11 of the Exchange's Corporate
Disclosure Policy on Response To Unusual Market Activity, the
Company is requested to furnish the Exchange with an
announcement for public release after a due enquiry seeking the
cause of the unusual market activity in the Company's
securities. When considering the Company's response and when
making the required announcement, your attention is particularly
drawn to the continuing disclosure requirements set out in
Chapter 9 of the KLSE's Listing Requirements.
The announcement is to reach the Exchange within one (1) market
day via KLSE Listing Information Network (KLSE Link).
WENDY TAN
Sector Head
Listing Compliance
Group Regulations
SOUTHERN PLASTIC: Unveils Default in Debt Payments
--------------------------------------------------
The following are the outstanding liabilities in respect of
default in payments to financial institutions by Southern
Plastic Holdings Bhd. and its subsidiaries (SPHB group) as at
31st December 2003. These outstanding liabilities are in respect
of credit facilities extended by financial institutions to SPHB
group.
A) SOUTHERN PLASTIC HOLDINGS BHD.
i) Affin Bank Berhad RM8,820,069.00
ii) Aseambankers Malaysia Berhad RM3,384,650.00
iii) OCBC Bank (M) Berhad RM1,181,470.00
B) SOUTHTIM (M) SDN. BHD.
i) Malayan Banking Berhad RM11,839,796.00
ii) OCBC Bank (M) Berhad RM5,534,140.00
iii) United Overseas Bank Berhad RM1,973,962.00
iv) Affin Bank Berhad RM3,827,993.00
C) SOUTHTECH (M) SDN. BHD.
i) United Overseas Bank Berhad RM2,737,066.00
ii) Malayan Banking Berhad RM8,292,626.00
D) SOUTH ISLAND ENTERPRISE SDN. BHD.
i) United Overseas Bank Berhad RM796,423.00
E) SOUTHTECH PLASTIC (M) SDN. BHD.
i) United Overseas Bank Berhad RM5,195,666.00
ii) Hong Leong Bank Berhad RM4,402,292.00
iii) Bank Pembangunan RM1,875,500.00
iv) Alliance Bank Berhad RM806,105.00
v) Malayan Banking Berhad RM7,478,371.00
F) FUJISU MARKETING (M) SDN. BHD.
i) Malayan Banking Berhad RM799,162.00
G) SOUTHTECH PROPERTIES SDN. BHD.
i) EON Bank Berhad RM1,804,470.00
H) SOUTHERN PLASTIC SDN. BHD.
i) Malayan Banking Berhad RM10,055,727.00
TELEKOM MALAYSIA: Clarifies Celcom IPO Report
---------------------------------------------
The letter dated 6 January 2004 from the Kuala Lumpur Stock
Exchange (KLSE) regarding the following news article appearing
in the New Straits Time, Business Times section; page B2 on
Tuesday, 6 January 2004 refers:
"TELEKOM Malaysia Bhd, tipped to launch a RM2.5 billion to RM3.5
billion initial public offering (IPO) for its mobile arm
Celcom...."
The Company wished to clarify as follows:
a) TM has not ruled out the possibility of re-listing Celcom.
b) However, at this time, no decision has been made in respect
of timing, size and price of the Celcom Shares to be offered
pursuant to such re-listing exercise.
c) No decision has been made in respect to the appointment of
advisers for the said re-listing exercise.
The decision to re-list Celcom will, inter alia take into
account the succcess of the on-going integration exercise and
the interest of optimizing value to the shareholders of TM.
Query Letter content:
We refer to the above news article appearing in the New Straits
Times, Business Times section, page B2, on Tuesday, 6 January
2004, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the
underlined sentence, which is reproduced as follows:-
"TELEKOM Malaysia Bhd, tipped to launch a RM2.5 billion to RM3.5
billion initial public offering (IPO) for its mobile phone arm
Celcom ..."
In accordance with the Exchange's Corporate Disclosure Policy,
you are requested to furnish the Exchange with an announcement
for public release confirming or denying the above reported
article and in particular the underlined sentence after due and
diligent enquiry with all the directors, major shareholders and
all such other persons reasonably familiar with the matters
about which the disclosure is to be made in this respect. In the
event you deny the above sentence or any other part of the above
reported article, you are required to set forth facts sufficient
to clarify any misleading aspects of the same. In the event you
confirm the above sentence or any other part of the above
reported article, you are required to set forth facts sufficient
to support the same.
Please furnish the Exchange with your reply within one (1)
market day from the date hereof.
Yours faithfully
LISA LAM
Sector Head, Issues & Listing
Regulatory Division
KLL/ZOOS
c.c. Securities Commission (via fax)
WING TIEK: Issues Debt Restructuring Update
-------------------------------------------
The Board of Wing Tiek Holdings Berhad has on Thursday issued
the Letter to Warrant Holders informing them of their
entitlement to participate in the Share Exchange pursuant to the
proposed scheme of arrangement between WTHB, its shareholders
and JAKS Resources Berhad under Section 176 of the Companies
Act, 1965 (the Act), the contents of which are summarized as
below:
Warrant holders of WTHB are hereby notified that WTHB, an
affected listed issuer as defined in Practice Note 4/2001 of the
Listing Requirements of the Malaysia Securities Exchange Berhad
(MSEB), has proposed to carry out a corporate and debt
restructuring scheme (CDRS) to regularize its financial position
and the CDRS has received the approvals from the relevant
authorities. The debt-restructuring scheme, which forms part of
the CDRS, was approved by the Scheme Creditors at a Court-
Convened Meeting held on 21 July 2003 pursuant to Section 176 of
the Act. The shareholders of WTHB approved the relevant
resolutions on the CDRS, as set out in the Explanatory Statement
and Circular to Shareholders, at the Court-Convened Meeting and
Extraordinary General Meeting held on 24 September 2003.
As part of the CDRS, the existing shareholders of WTHB will
exchange the existing ordinary shares of RM1.00 each held in
WTHB (WTHB Share(s)) with new ordinary shares of RM1.00 each in
JAKS Resources Berhad (JAKS Resources Share(s)) on the basis of
1 new JAKS Resources Share for every 8 existing WTHB Shares held
on a date to be determined (Entitlement Date) pursuant to the
proposed scheme of arrangement between WTHB, its shareholders
and JAKS Resources Berhad under Section 176 of the Act (Share
Exchange).
Upon completion of the CDRS, JAKS Resources Berhad will be
listed on the Main Board of the MSEB in place of WTHB.
Thereafter, WTHB would be removed from the Official List of the
Main Board of the MSEB and the entire issued and paid-up share
capital of WTHB would be de-listed. Consequently, the warrants
issued by WTHB would be de-listed. Upon the listing of and
quotation for the JAKS Resources Shares and the delisting of
WTHB Shares and warrants, only the JAKS Resources Shares will be
traded. The approval-in-principle of the MSEB will be sought for
the listing of and quotation for the JAKS Resources Shares and
the delisting of WTHB Shares and warrants.
In this connection, warrant holders who wish to participate in
the Share Exchange, are advised to exercise the warrants at any
time prior to the Entitlement Date. An announcement on the
Entitlement Date will be made in due course.
The procedures for the exercise of the warrants are as set out
in the deed poll dated 13 July 1994, the supplemental deed poll
dated 21 April 1997 and the second supplemental deed poll dated
15 January 1999 (collectively known as "Deed Poll).
The Deed Poll and the Explanatory Statement and Circular to
Shareholders will be available for inspection at the registered
office of WTHB at 10th Floor, Tower Block, Kompleks
Antarabangsa, Jalan Sultan Ismail, 50250 Kuala Lumpur during
normal business hours from Mondays to Fridays (except public
holidays) from 8 January 2004 up to the Entitlement Date.
If warrant holders have questions on the procedures for the
exercise of the warrants, please contact the Company's Registrar
at the following address:
Signet Share Registration Services Sdn Bhd
11th Floor, Tower Block
Kompleks Antarabangsa
Jalan Sultan Ismail
50250 Kuala Lumpur
Tel No.: 03 - 2145 4337
Fax No.: 03 - 2142 1353
Contact person: Ms Selina Ng
Please note that the purpose of this notice is to inform warrant
holders of their entitlement to participate in the Share
Exchange if the warrant holders exercise the warrants before the
Entitlement Date and should not be taken to indicate that the
Company recommends to exercise the warrants. Warrant holders
should rely on their own evaluation to assess the merits and
risks involved when exercising the warrants. If warrant holders
are in doubt as to the course of action that they should follow,
they should consult their stockbroker, banker, solicitor or
other professional adviser immediately.
For detail information pertaining to the above share exchange,
please refer to the letter sent to warrant holders dated January
8, 2004.
=====================
P H I L I P P I N E S
=====================
DIGITAL TELECOMMUNICATIONS: Clarifies AT&T Rate Deal Report
-----------------------------------------------------------
This is in reference to the news article entitled "Gokongwei's
Digitel expects rate deal with AT&T by end Januar," published in
the January 8, 2004 issue of the Philippine Daily Inquirer. The
article reported that "Digital Telecommunications Phils. Inc. of
the Gokongwei group expects to reach a termination rate
agreement with American telecommunications giant AT&T
Corporation by the end of the month, raising the possibility of
finally resolving their long-standing rates dispute. Digitel
senior Vice President for legal and inter-carrier services
William Pamintuan on Thursday said negotiations between the
Gokongwei-owned firm and the U.S. carrier were still ongoing but
hopes were high that an agreement will be reached soon."
Digital Telecommunications Philippines, Inc. (DGTL), in its
letter dated January 8, 2004, advised the Philippine Stock
Exchange that:
"We confirm the said statement that our Company has an ongoing
negotiation with AT&T and we expect the rates dispute to be
resolved anytime soon."
For a copy of the press release, go to
http://www.pse.org.ph/html/disclosure/pdf/dc2003_069_DGTL.pdf
DIGITAL TELECOMMUNICATIONS: Names New Directors
-----------------------------------------------
Digital Telecommunications Philippines Inc. informed the
Philippine Stock Exchange of the following:
1. The appointment of Mr. Gabriel C. Singson as Director to
fill-in the position vacated by the late Mr. Eduardo M.
Villanueva; and
2. The appointment of Mr. Jame L. Go as Vice Chairman of the
Board
For a copy of the press release, go to
http://www.pse.org.ph/html/disclosure/pdf/dc2004_062_DGTL.pdf
FORTUNE CEMENT: Issues Plan to Address Capital Deficiency
---------------------------------------------------------
This is in reference 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, Fortune Cement Corporation (FCC), in a
letter dated December 22, 2003, which the Exchange received on
January 6, 2004, submitted the attached disclosure with respect
to its plan of activities to be undertaken to bring the
stockholders' equity from negative to positive.
The Philippine Stock Exchange shall inform the Trading
Participants and the investing public of further developments on
the matter.
For more information, go to
http://www.pse.org.ph/html/disclosure/pdf/dc2003_035_FCC.pdf
MANILA ELECTRIC: Enters Alliance With First Gas
-----------------------------------------------
The Meralco IPP Independent Review Committee (IRC) announced
Wednesday the conclusion of its negotiations with First Gas,
resulting in a package of concessions worth up to 30 billion
pesos, with immediate savings of P10.6 billion or three centavos
per kilowatt hour for costumers.
Manila Electric Co. (Meralco) President & COO, Mr. Jesus P.
Francisco, and First Gas contain the package of concessions in
an Amendment to the Power Purchase Agreement between Meralco and
First Gas, which was on January 7, at 10:15 A.M.
Negotiations were finalized last December 29, aftera 17-month
long series of meetings, according to Meralco IRC Chairman Gary
B. Teves.
"First Gas grants many major concessions that directly benefit
consumers in this renegotiated agreement, which offer added
savings under every scenario," Teves said.
Concessions with immediate value include First Gas shouldering
local business and community taxes, while conditional
concessions include increasing discounts on electricity rates,
paying higher penalties for non-performance, and until 2011, not
charging Meralco for energy delivered beyond the contracted
amount.
"The positive results of this process are a clear indication of
Meralco's commitment to its customers," IRC member Emilio Vicens
said.
"It was the spirit of cooperation, partnership and service to
the consumers that made compromise possible," added First Gas
Vice Chairman and CEO Peter D. Garrucho.
Meralco sources power from NPC and its three IPPs; Quezon Power,
First Gas' Sta. Rita plant and FGP Corporation's San Lorenzo
plant. Sta. Rita and San Lorenzo both utilize environment-
friendly natural gas from Malampaya.
Meralco consumers will begin to receive the full benefits of the
Meralco-First Gas IPP review upon the Energy Regulatory
Commission's (ERC) approval of the renegotiated agreement.
Meralco consumers will begin to receive the full benefits of the
Meralco-First Gas IPP review upon the Energy Regulatory
Commission's (ERC) approval of the renegotiated agreement.
The Meralco IRC was created to oversee negotiations with
Meralco's IPPs and includes Meralco independent Directors Gary
B. Teves, LandBank President and CEO, and Emilio Vicens, Union
Fenosas Managing Director for Asia.
For more information, go to
http://www.pse.org.ph/html/disclosure/pdf/dc2004_041_MER.pdf
MANILA ELECTRIC: Sees Cash Deficit in First Half Due to Refund
--------------------------------------------------------------
Manila Electric Co. (Meralco) expects a cash deficit in the
first half of 2004 due to its ongoing refund of overcharges to
customers worth 30.5 billion pesos and other expenses, Business
World newspaper reported quoting Company President Jesus
Francisco.
Francisco said a shortened refund period of six months for big
residential customers would further bleed the Company's
finances. Meralco has been asking the Energy Regulatory
Commission to extend the refund period for big residential
clients to one year, instead of the six-month period ordered by
the regulator.
Meralco has US$80 million in short-term loans maturing in
January, and has 3.9 billion worth of long-term loans, which
would fall due in the first quarter of the year.
MAYNILAD WATER: Suppliers Threaten to Stop Services to Firm
-----------------------------------------------------------
Contractors are threatening to stop supplying goods and services
to Maynilad Water Services Inc. until the water firm starts
paying them on time, Business World reports, citing Maynilad
receiver Rosario S. Bernaldo. The suppliers said that Maynilad's
operations would be severely hampered if they were to cut their
ties with it, pending the approval of its petition for
rehabilitation.
Maynilad lawyer Ronald Ledesma said his client was aware of the
complaints and was addressing them. Maynilad President Rafael
Alunan III is also looking for money so his firm could pay its
suppliers. A number of the creditors that have sought Ms.
Bernaldo's intervention are mid-sized companies with
collectibles of less than 1 million pesos each from Maynilad.
NATIONAL STEEL: India's Global Infrastructure Improves Offer
------------------------------------------------------------
Indian firm Global Infrastructure Holdings Limited has further
improved its offer to acquire the National Steel Corporation by
proposing to shorten its payment term to eight years from the
previous 10 years, AFX Asia reports. Earlier, Global
Infrastructure also increased its bid price to 12.25 billion
pesos from 11.095 billion, and its upfront cash to 1 billion
pesos from 655 million.
Creditors of National Steel have until January 15 to approve the
offer. They are the Philippine National Bank, Land Bank of the
Philippines, China Banking Corp, Rizal Commercial Banking Corp,
Credit Agricole Indosuez, Metropolitan Bank and Trust Co,
Equitable PCI Bank, United Coconut Planters Bank and Danaharta
of Indonesia. Only two of these banks have yet to approve Global
Infrastructure's proposal
URBAN BANK: SC Dismisses Criminal Charges Against BSP Execs
-----------------------------------------------------------
The Supreme Court (SC) has dismissed with finality the criminal
charges filed by Urban Bank against the top officials of the
Bangko Sentral ng Pilipinas (BSP), upholding the earlier ruling
of the Office of the Ombudsman, the Philippine Star said on
Friday.
The case is one of many filed in separate petitions by Urban
Bank President Teodoro Borlongan, this time involving criminal
charges against BSP Governor Rafael Buenaventura, Deputy
Governor Alberto V. Reyes and examiners Ma. Dolores B. Yuvienco,
Candon B. Guerrero and Tomas S. Aure Jr. The SC has already
dismissed the criminal charges filed against Buenaventura et al
but Borlongan appealed the decision.
In September 2003, the Export and Industry Bank Inc. (EIB) has
completed the second of three tranches of repayments of deposits
in the closed Urban Bank under the three-year Liability
Servicing Program (LSP), TCRAP reported. The LSP is part of a
rehabilitation plan for Urban Bank, which was absorbed by EIB in
2001. The last tranche of repayments under the LSP is due on
September 12, 2004. The Philippine Central Bank (Banko Sentral
Ng Pilipinas) closed Urban Bank in 2000 after the bank declared
a holiday due to liquidity problems.
=================
S I N G A P O R E
=================
EAB CORPORATION: Creditors Must Submit Claims by January 26
-----------------------------------------------------------
The creditors of EAB Corporation Pte Ltd (In Members' Voluntary
Liquidation) are required on or before January 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.
CHEE YOH CHUANG
LEOW QUEK SHIONG
Liquidators.
18 Cross Street
#08-01 Marsh & McLennan Centre
Singapore 048423.
ELOGICITY INTERNATIONAL: Winding Up Hearing Set for January 16
--------------------------------------------------------------
The petition to wind up Elogicity International Ptd 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. P&O Australia
Ports Pty Ltd., a Company incorporated in New South Wales,
Australia and having its registered office at Level 8, 160
Sussex Street, Sydney, NSW 2000, Australia, a Shareholder, filed
the petition with the court on December 15, 2003.
The Petitioners' Solicitors are TSMP Law Corporation of 6,
Battery Road #33-01, Singapore 049909. Any person who intends to
appear on the hearing of the petition must serve on or send by
post to TSMP Law Corporation 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).
FALCON PILING: Issues Judicial Management Order Notice
------------------------------------------------------
Notice is hereby given that a petition for placing Falcon Piling
Pte Ltd. under the judicial management of a judicial manager by
the High Court was, on the 12th day of November 2003 presented
by the Company (pursuant to a resolution of its board of
directors) and that the said petition is directed to be heard
before the Court at 10.00 am on the 9th day of January 2004 and,
Mr. Yin Kum Choy of K C Yin & Co has been nominated as the
judicial manager; and any person who intends to oppose the
making of an order under section 227B (5) (b) or the nomination
of a judicial manager under section 227B (3) (c) may appear at
the time of the hearing by himself or his counsel for that
purpose; and a copy of the petition will be furnished to any
creditor or member of the Company requiring it by the
undersigned on payment of the regulated charge.
The Petitioner's address is 61 Gul Drive, Singapore 629500.
The Petitioner's solicitor is Yeo Wee Kiong Law Corporation of 1
Raffles Place, #39-02 OUB Centre, Singapore 048616.
YEO WEE KIONG LAW CORPORATION
Note:
Any person who intends to appear on the hearing of the petition
must serve on or send by post to the abovenamed solicitor notice
in writing of his intention so to do. The notice must state the
name and address of the person, or if a firm, the name and
address of the firm, and must be signed by the person or firm,
or his or their solicitor (if any) and must be served, or, if
posted, must be sent by post in sufficient time to reach the
abovenamed 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).
FEDEX SUPPLY: Issues Dividend Notice
------------------------------------
Fedex Supply Chain Services International Pte Ltd issued a
notice of intended dividend as follows:
Address of Registered Office: c/o 10 Collyer Quay, #21-01 Ocean
Building, Singapore 049315.
Last day of receiving proofs: 9th January 2004.
Name of Liquidator: Sim Guan Seng.
Address: c/o 10 Collyer Quay #21-01 Ocean Building, Singapore
049315.
JESS PALATE: Issues First and Final Dividend Notice
---------------------------------------------------
Jess Palate Pte Ltd (In Creditors' Voluntary Liquidation) issued
a first and final dividend notice as follows:
Address of Registered Office: c/o KONG, LIM & PARTNERS 98A Amoy
Street Singapore 069918.
Amount percentum: 100 percentum of all admitted preferential
claims.
First and Final or otherwise: First and Final.
When Payable: 6th January 2004.
Where Payable: KONG, LIM & PARTNERS, 98A Amoy Street, Singapore
069918.
LIM YEONG SENG
Liquidator.
LKN-PRIMEFIELD: Post Changes in Shareholder's Interest
------------------------------------------------------
LKN-Primefield Limited issued a notice of dealings in LKN-
Primefield shares by a director of the Company's subsidiary
PART I
1. Date of notice to issuer: 07/01/2004
2. Name of director of the Company's subsidiary: Leong Sin Kuen
3. Please tick one or more appropriate box(es):
x a Director's (including a director who is a substantial
shareholder) Interest and Change in Interest. [Please complete
Parts II and IV]
PART II
1. Date of change of shareholding: 30/12/2003
2. Name of Registered Holder: Leong Sin Kuen
3. Circumstance(s) giving rise to the interest or change in
interest:
Others
Please specify details: Conversion of 4,204,546 non-redeemable
convertible preference shares of S$0.20 each into 4,204,546
ordinary shares of S$0.20 each
4. Information relating to shares held in the name of the
Registered Holder:
No. of shares held before the change: 5,968,750
As a percentage of issued share capital: 2.95
No. of shares which are the subject of this notice: 4,204,546
As a percentage of issued share capital: 1.83
Amount of consideration (excluding brokerage and stamp duties)
per share paid or received: NA
No. of shares held after the change: 10,173,296
As a percentage of issued share capital: 4.42
PART III
1. Date of change of interest:
2. The change in the percentage level: From percent to percent
3. Circumstance(s) giving rise to the interest or change in
interest:
4. A statement of whether the change in the percentage level is
the result of a transaction or a series of transactions.
PART IV
1. Holdings of director of the Company's subsidiary, including
direct and deemed interest:
Deemed Direct
No. of shares held before change: 5,968,750
% of issued share capital: 2.95
No. of shares held after change: 10,173,296
% of issued share capital: 4.42
L&M GROUP: Post Changes in Audit Committee
------------------------------------------
The Board of Directors of L&M Group Investments Limited
announced that Mr. Edward Seky Soeryadjaya has tendered his
resignation as a member of the Audit Committee with effect from
8 January 2004. He remains an Executive Director acting in the
capacity of Chief Executive Officer.
(II) APPOINTMENT TO THE AUDIT COMMITTEE
The Company announced that Mr. Husni Heron has resigned as an
Executive Director with effect from 8 January 2004. He continues
to be a Director of the Company in a non-executive capacity. Mr.
Husni Heron has also been appointed a member of the Audit
Committed with effect from 8 January 2004 in place of Mr. Edward
Seky Soeryadjaya.
WEE POH: WPC Set Creditors Meeting on February 11
-------------------------------------------------
Further to our announcement on 11th December 2003 in relation to
the application of our principal subsidiary, Wee Poh
Construction Co Pte Ltd (WPC), for a Proposed Scheme of
Arrangement (the SOA), the Board of Directors of Wee Poh Holding
Limited announced that the High Court of Singapore (the Court)
has granted an order in terms of the application. Amongst
others, the Court has ordered:
a) That WPC convene a creditors meeting pursuant to Section 210
of the Companies Act, Chapter 50 of Singapore (the Act), to be
held no later than 11 February 2004 for the purpose of
considering and if thought fit, approving with or without
modification the SOA proposed to be made between:
(1) WPC and the unsecured creditors of WPC as defined in the SOA
and
(2) WPC and the preferential creditors of WPC as defined in the
SOA.
b) That further proceedings in any action or proceedings against
WPC (including execution proceedings) are restrained pursuant to
Section 210(10) of the Act, except by leave of and subject to
such terms as the Court may impose.
The Company will issue the notice of the creditors meeting at a
later date.
ZESONETTE PTE: Petition to Wind Up Pending
------------------------------------------
The petition to wind up Zesonette Pte Ltd Co. is set for hearing
before the High Court of the Republic of Singapore on January
16, 2004 at 10 o'clock in the morning. Mthree Asia Pte Ltd., a
creditor, whose address is situated at 70 Bendemeer Road, #01-03
Hiap Huat House, Singapore 339940, filed the petition with the
court on December 8, 2003.
The petitioners' solicitors are The Petitioners' Solicitors are
Messrs Ng Ong & Chee at No. 2 Finlayson Green, #10-05 Asia
Insurance Building, Singapore 049247. Any person who intends to
appear on the hearing of the petition must serve on or send by
post to Messrs Ng Ong & Chee 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).
===============
T H A I L A N D
===============
BANGCHAK PETROLEUM: Sells 3 Billion Depository Receipts
-------------------------------------------------------
Oil refiner Bangchak Petroleum PCL will sell 3 billion baht
(US$77 million) of depository receipts as part of a debt-
reorganization plan, Business Day reports. The Company will sell
the depository receipts, which are guaranteed by the government,
at about 13 baht each to investors from January 26 to 28. The
government also guaranteed a return 10 percent higher than
Bangchak's share price when the receipts are redeemed.
The Company, which is controlled by the Thai government, has
debt of about 19.5 billion baht. A depository receipt is a
document issued in place of stock that sometimes represents
ownership of shares in the Company.
TPI POLENE: To Revive 300 Million Share Offering this Week
-----------------------------------------------------------
Restructuring cement maker, TPI Polene PCL, will put 300 million
shares on the market from January 15 to 16, according to
Reuters.
The placement is its third attempt at raising funds from the
market to bankroll its restructuring. It scrapped the first two
due to poor market responses in March and November last year.
Reuters said the company hopes to raise at least US$180 million
from the transaction. CEO Prachai Leophairatana said the final
offer price will be finalized by January 19 after a bookbuilding
exercise on January 12. Tisco Securities is lead underwriter.
"The offer price is in range of 40-50 baht each. We hope things
will go smoothly this time," Mr. Prachai told Reuters during a
phone interview.
TPI has been restructuring its US$1.1 billion debt since 2001.
As part of its rehabilitation plan, it is also seeking a US$750
million loan from state-run Krung Thai Bank, one of its major
creditors, to buy debt back from creditors at a discount.
"In February 2002, TPI Polene agreed to sell a 77 percent stake
for US$375 million to rival Siam City Cement, 32 percent-owned
by Switzerland's Holcim, but later opted for a public share sale
instead," Reuters said.
Its creditors include Thailand's biggest commercial bank,
Bangkok Bank PCL, and German development bank Kreditanstalt fuer
Wideraufbau (KfW), Reuters added.
TPI POLENE: Rejects Net Profit Forecast Allegedly Made by CEO
-------------------------------------------------------------
TPI Polene PCL issued Friday a disclaimer on the reported THB5-6
billion net profit that CEO Prachai Leophairatana had reportedly
forecast for fiscal year 2003.
"Prachai Leophairatana has never quoted such expected net profit
for the year 2003 as quoted [in the news Thursday]," a statement
filed with the Stock Exchange of Thailand partly reads.
The company was expected to published its full-year 2003 results
Friday.
*********
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
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*** End of Transmission ***