/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/040122.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 Thursday, January 22, 2004, Vol. 7, No. 15 Headlines A U S T R A L I A NATIONAL AUSTRALIA: Losses from Scandal Could Balloon to AU$600M NOVUS PETROLEUM: Chairman 'Disappointed' with CEO NOVUS PETROLEUM: Releases Independent Expert Report on Medco Bid NOVUS PETROLEUM: Posts Preliminary 2003 Results, 2004 Forecast C H I N A & H O N G K O N G KINGFIELD DESIGN: Faces Winding up Petition in HK High Court MANKIND INTERNATIONAL: Bank of China Files Winding up Petition TOP SHEEN: HK Court Sets Winding up Hearing March 3 I N D O N E S I A BANK INTERNASIONAL: Thanks to Scandal, IBRA Leaves with a 'Bang' BANK INTERNASIONAL: Data Custodian Vows to Cooperate in Probe J A P A N ALL NIPPON: Air Nippon Planes to Use 'ANA' Brands in April JAPAN AIRLINES: Cancels 120 Flights Because of Engine Cracks JAPAN AIRLINES: Cracks Found on 18 More Planes MITSUBISHI MOTORS: Rumors of Impending Capital Boost Swirl NIPPON SHINPAN: Finalizes Merger Agreement with UFJ Group K O R E A KIA MOTORS: Carnival Model Fails Emission Test; Recall Ordered KYOBO LIFE: Ordered to Pay KRW252 Billion in Tax Arrears LG CARD: Civic Group Accuses LG Cable Execs of Insider Trading M A L A Y S I A PAN PACIFIC: Approval of Extension of Audit Remains Pending PERNAS INTERNATIONAL: Details Latest Transaction Involving Lease PWE INDUSTRIES: Details Proposed Corporate Restructuring Plan WING TIEK: Posts Update on Corporate Debt Restructuring P H I L I P P I N E S MANILA ELECTRIC: Accused of Overcharging Anew MANILA ELECTRIC: Skirts Default with Timely Debt Pact MANILA ELECTRIC: Cancels Debt Offering, Court-mandated Refund MANILA ELECTRIC: Oral Argument on Rate Hike Stoppage Set Jan. 27 NATIONAL STEEL: Majority of Creditors Accept GIHI Offer PHILIPPINE LONG: Execs Won't Show up in Honolulu Hearing Today PILIPINO TELEPHONE: Takeover by Smart Likely, Say Sources UNIVERSAL RIGHTFIELD: Clarifies News About Abandoned Rehab Plan S I N G A P O R E SEATOWN CORPORATION: To Apply for Judicial Management Extension SINGAPORE TELECOMMUNICATIONS: Unit Accepts Offer for TMC Stake T H A I L A N D TPI POLENE: Posts Details of Newly Listed Shares - - - - - - - - ================= A U S T R A L I A ================= NATIONAL AUSTRALIA: Losses from Scandal Could Balloon to AU$600M ---------------------------------------------------------------- Investors' interest in National Australia Bank (NAB) is souring, according the Wall Street Journal, as the bank reels from the foreign-currency trading scandal that has forced it to raise pre-tax losses estimate to AU$185 million from AU$5 million. The paper said the widening investigation on the rogue-trading scam is estimated to uncover further foreign-currency trading losses, now estimated to be as much AU$600 million (US$458 million). "Analysts already expect known losses to wipe out the bank's entire fiscal 2004 earnings growth, souring the bank's appeal to investors, as the scandal is likened to events leading up to the Barings collapse last decade," the Wall Street Journal said. "Deeper losses could also jeopardize strategic plans, including a heavy U.K. investment program or a possible acquisition of Australian funds manager AMP Ltd." Chief Executive Frank Cicutto has ordered the widening of the probe to include other market operations, such as commodities, spot currency and interest rates. The move pushed the bank's shares further down, according to the report. "Though the focus continues to be on bogus trades from its foreign-currency options desk, NAB hopes the broader examination of its entire trading floor will inject much-needed confidence into its market operations," the paper said. NAB shares closed 8c lower at AU$29.84 Monday, after falling 48c on Friday, the Sydney Morning Herald said in a separate report. The paper expects further slides as speculations of more losses continue. "No one really believes much of what they are saying at the moment, and it can't be good for the share price," the Sydney Morning Herald quoted Matrix Asset Management's, managing director, Brian Ingham. "I don't know how long Frank Cicutto can stand the pressure that's building internally and is building externally for his resignation." Chairman Charles Allen has said he is willing to take "whatever action is necessary" to ensure investors, customers and staff have "full confidence" in the bank. Last week, the bank cleansed its foreign currency option book from alleged "fictitious" or "phantom" trades carried out by four traders to mask their initial losing trades, the Sydney Morning Herald said. "The removal of these trades left behind a number of open real trades with counter-parties that have racked up even more losses, with some sources indicating this could cost another AU$100 million as the trades remaining open are revalued and are assessed to see which are worth letting run. This would take total losses from the affair to at least AU$285 million," the paper added. Mr. Cicutto disputed this claim earlier this week: "Based on our work to date, there is a very low probability that the total losses will be as high as market speculation of AU$600 million." Meanwhile, David Bullen, a Melbourne trader has claimed the bank knew that internal limits had been breached. NAB's auditors, KPMG, and outside forensic accounting experts from PricewaterhouseCoopers are now investigating the matter. NOVUS PETROLEUM: Chairman 'Disappointed' with CEO ------------------------------------------------- Novus Petroleum Chairman David Blair is not too happy about how the bid for the company is turning out. In an interview with reporters Tuesday, his so-called body language seems to indicate that the chief's days in the company are numbered. "All of the independent directors don't feel that the offer from Crosby is fully reflective of value, so from that perspective I would have to say I am disappointed," Mr. Blair said, referring to the AU$1.77 a share or AU$331 million offer of Crosby Capital of Hong Kong, which is also partly financed by CEO Bob Williams. He noted that Dr. Williams was given the job of finding a rival suitor after Indonesia's Medco Energi made a hostile AU$1.74-a- share takeover bid for Novus on Christmas Eve. Because of his participation in the bidding, Dr. Williams could no longer take part in the consideration of bids. "He was given the job to use his energies to find alternative bidders plural. What has happened is he's come back with a bid, which prevents him going out and looking for other bidders. That responsibility falls much more on a day-to-day point of view on my shoulders and on Merrill Lynch. That's my only comment on the level of comfort," The Age quoted him saying. He refused to confirm whether or not the board had asked Dr. Williams to resign. Asked if the Novus board was comfortable with Dr. Williams remaining as CEO, Mr. Blair said: "Comfortable is a difficult adjective." NOVUS PETROLEUM: Releases Independent Expert Report on Medco Bid ---------------------------------------------------------------- On December 22, 2003, Medco Energi Australia Pty Ltd. (Medco), a wholly owned subsidiary of PT Medco Energi Internasional Tbk, announced its intention to make a takeover offer (the Medco Offer) for all the issued shares in Novus Petroleum Limited (Novus). The Medco Offer is $1.74 in cash for each ordinary share in Novus. The Medco Offer is subject to a number of conditions, including that Medco acquires no less than 90% of the shares in Novus. Medco served its Bidder's Statement on Novus on December 24, 2003. Novus is a geographically diversified Australian oil and gas company with a focus on natural gas exploration and production. Listed on the Australian Stock Exchange (ASX) since 1995, its assets include production and exploration interests in the United Stated, Indonesia, Australia and the Middle East. There is no statutory requirement for the Directors of Novus to commission an independent expert's report in relation to the Medco Offer. However, the Directors of Novus have requested that Grant Samuel prepare an independent expert's report stating whether, In Grant Samuel's opinion, the Medco Offer is fair and reasonable, and the reasons for that opinion. Grant Samuel is independent of Novus and Medco and has no involvement with, or interest in the outcome of, the Medco Offer, other than the preparation of this report. A copy of the report will accompany the Target's Statement to be sent by Novus to its shareholders. To view full copy of this press release, click http://bankrupt.com/misc/novus_petroleum.pdf NOVUS PETROLEUM: Posts Preliminary 2003 Results, 2004 Forecast -------------------------------------------------------------- As part of Novus Petroleum Limited's formal response to the unsolicited off-market takeover offer by Medco Energi (Australia) Pty Ltd, Novus has completed the preparation of its preliminary unaudited results for the year ended December 31, 2003 and the Directors' Forecast for 2004. 2003 Preliminary Results Preliminary Profit $Million Preliminary Actual 2003 2002 Operating profit after tax 28.4 21.0 Non-operating loss after tax (17.0) (55.0) Net profit/(loss) after tax 11.4 34.0 Novus announces that its preliminary Operating Profit for 2003 was $28.4 million, a 35% improvement on the prior year of $21.0 million, and was achieved despite the strengthening Australian dollar. The result was reduced by non-operating items of $17.0 million leading to a preliminary net profit after tax of $11.4 million (compared to a 2002 loss of $34.0 million). The main factors influencing the improved operating result of $28.4 million included increased revenue from the United States, increasing gas production from Indonesia and a reduction in operating costs following the sale of Malacca Strait at the end of 2002. Adjusting for the sale of Malacca Strait, production increased by 15% to 6.7mmboe of which Indonesia contributed close to half over the entire year. The Wunut field in the Brantas PSC, Indonesia, has seen increases in production this year due to increased demand. Consequently this asset has made a solid contribution to profitability for the year, and has outperformed expectations. The signing of a Gas Sales Agreement means that Novus has committed to further development drilling which will allow production to be increased further. US denominated commodity prices also strengthened but were more than offset by the stronger Australian dollar that rose from an average of US$0.544 in 2002 to US$0.652 or almost 17%. This resulted in a decline in the average realized commodity price of 8% to $32.33 per boe. Operating costs have decreased largely due to the sale of the Malacca Strait asset at the end of 2002. As a mature asset, Malacca Strait had high operating costs associated with ageing production, and was also heavily taxed under the Indonesian regime. Its sale aligns the portfolio closer to our higher- profitability, gas-based strategy. The capital released from the sale of Malacca Strait was reinvested in the second half of the year into the East Cameron and Main Pass producing assets in the United States. DD&A for the period remained flat despite the favorable translation effect of the stronger Australian dollar. This was primarily due to higher depreciation charges in the Copper Basin where 2P reserves at January 1, 2003 were reduced by 13% and rising production from Indonesia and the United States. While the stronger Australian dollar has a translation impact for reporting purposes, Novus' underlying business is predominantly conducted in US dollars and hence is largely unaffected by exchange rate movements. The non-operating loss of $17.0 million relates to the write-off of the unsuccessful Gregory river exploration well drilled in Queensland, Australia, the Magnet Withers lease in Texas, United States, and the write down in the carrying value of the Tibat field in Oman due to the high level of inerts present in the gas that has resulted in the appraisal and potential development of the field being delayed until after other opportunities in the Greater Bukha area are exploited. To view full copy of this press release, click http://bankrupt.com/misc/novus_petroleum2.pdf ============================== C H I N A & H O N G K O N G ============================== KINGFIELD DESIGN: Faces Winding up Petition in HK High Court ------------------------------------------------------------ The High Court of Hong Kong will hear on February 25, 2004 at 9:30 a.m. the petition seeking the winding up of Kingfield Design Limited. Fan Yat Shing of Room 10, 3/F., Tai Shing Building, 76 Ivy Street, Tai Kok Tsui, Kowloon, Hong Kong filed the petition on December 10, 2003. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office on the 34th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai Hong Kong. MANKIND INTERNATIONAL: Bank of China Files Winding up Petition -------------------------------------------------------------- The High Court of Hong Kong will hear on February 18, 2004 at 9:30 a.m. the petition seeking the winding up of Mankind International Limited. Bank of China (Hong Kong) Limited (the successor corporation to Bank of China, Hong Kong Branch pursuant to Bank of China (Hong Kong) Limited (Merger) Ordinance (Cap. 1167) of 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong filed the petition on December 9, 2003. Chu & Lau represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Chu & Lau, which holds office on the 2nd Floor, The Chinese General Chamber of Commerce Building, 24-25 Connaught Road Central Hong Kong. TOP SHEEN: HK Court Sets Winding up Hearing March 3 --------------------------------------------------- The High Court of Hong Kong will hear on March 3, 2004 at 9:30 a.m. the petition seeking the winding up of Top Sheen Investment Limited. Cheung Fu Hi of Flat B, 6th Floor, Westview Height, 163 Belcher's Street, Kennedy Town, Hong Kong filed the petition on December 18, 2003. Or, Ng & Chan represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Or, Ng & Chan, which holds office on the 15th Floor, The Bank of East Asia Building, 10 Des Voeux Road Central Hong Kong. ================= I N D O N E S I A ================= BANK INTERNASIONAL: Thanks to Scandal, IBRA Leaves with a 'Bang' --------------------------------------------------------------- Investigators looking into the alleged insider trading at Bank Internasional Indonesia late last year have pledged to wrap up their probe before the Indonesian Bank Restructuring Agency (IBRA) is disbanded on February 27. IBRA has become the center of this quietly proceeding probe. No one knows whether investigators are close to uncovering the proverbial smoking gun or are now building a case against certain persons. The investigation became public on January 16 when the Jakarta Stock Exchange admitted it had questioned six traders. Seven more traders were scheduled to face investigators this week. Authorities are not clear about how the sale of BII shares late last year by the IBRA constituted insider trading. IBRA sold a 52% stake in the bank to the Sorak Financial Holding consortium in October and later sold a further 20% to the open market. "Questions were raised over the sale of the 20% stake in BII after the offering was oversubscribed by a factor of 21 but IBRA raised just IDR877.74 billion from the sale," IndoExchange said. "BII share prices fell from a high of IDR150 on October 10 last year to around IDR105 when IBRA sold 1.22 billion shares at IDR104 per share on the open market over October 18-24." "Share prices continued to fall despite extremely positive sentiment towards banking and blue chip shares and IBRA later sold 8.32 billion shares -- or a 17.43% stake -- in a block sale at IDR90 per share in December," the newswire added. Formed in 1998, IBRA is set to be dissolved next month. Mandated to restructure the messy banking sector following the Asian financial crisis, the agency had since taken over a number of bank assets in exchange for bailout funds. These assets were in turn auctioned by IBRA to recover the money lent to banks and partly finance the burgeoning budget gap of the government, which ironically is due to these bailouts. "Allegations of corruption and a plethora of related crimes have followed almost every sale undertaken by the agency," IndoExchange says. IBRA Chief Syafuddin Temenggung says his office is prepared to answer any and all questions relating to the sale, although authorities had not yet summoned agency representatives. "Mr. Temenggung has said previously that IBRA had [only wanted] local investors to enjoy their share of the action in the open market sale after IBRA sold a majority stake in BII to foreigners. He reiterated this argument [last week] and said that IBRA had merely allowed local investors to take advantage of bullish sentiment towards Indonesian banking shares," IndoExchange said, citing detikcom. Meanwhile, BII Director Dira K. Mochtar disclosed the bank recorded a net profit of IDR300 billion (US$35.9 million) in 2003. She attributed this to a surge in cumulative credits extended, which reached IDR10 trillion in 2003 from IDR5.5 trillion in 2002. According to Antara news agency, net interest income totaled IDR100 billion in 2003, while assets were reported at IDR34.727 trillion by September 2003, with net income of IDR222 billion. BANK INTERNASIONAL: Data Custodian Vows to Cooperate in Probe ------------------------------------------------------------- PT Kustodian Sentral Efek Indonesia (KSEI) promised to cooperate in the investigation of possible insider trading at Bank Internasional Indonesia (BII). However, it will only do so upon formal request by relevant authorities, IndoExchange said Tuesday. "We will provide all data not only on the case of BII... but also on other cases," Investor Indonesia quoted KSEI director, Bambang Indarto, according to IndoExchange. Local laws mandate that only the investment coordinating agency or Bapepam, the central bank, the courts or a proxy can have access to confidential documents such as those now subject of investigation by authorities. "That is the procedure," Mr. Indarto said. The investigation into insider trading at BII that allegedly happened late last year is quietly going about. IndoExchange says authorities are currently poring over data and information on the sub-accounts of share transactions. Meanwhile, Member of Parliament Antony Zeidra Abidin criticized the Bapepam and the Jakarta Stock Exchange -- the agencies leading the investigation -- for not being serious in their probe. Mr. Abidin, who sits on Commission IX, warned the two agencies would be summoned to Parliament if they don't make a good account of their efforts. "If both of them have no good work performances, the [Parliament] will summon them," he said. ========= J A P A N ========= ALL NIPPON: Air Nippon Planes to Use 'ANA' Brands in April ---------------------------------------------------------- Beginning in April, all planes operated by All Nippon Airways (ANA) and those by Air Nippon (ANK) that connects regional cities will use the ANA brand, sources privy to the plan told Japan Today yesterday. "The move follows a deregulation measure by the Ministry of Land, Infrastructure and Transport, which had barred airlines from sharing a brand among different types of planes," Japan Today said. JAPAN AIRLINES: Cancels 120 Flights Because of Engine Cracks ------------------------------------------------------------ The Japan Air System (JAS), a unit of Japan Airlines System Corporation, cancelled 120 domestic flights on Monday after it found cracks in engines made by Pratt & Whitney, a spokesman for the Japan Airlines (JAL) group said, Reuters reports. The Company revealed that it discovered cracks in six engines used in five of the six planes it had inspected. The engines were models JT8D-217A and JT8D-217C and the planes were DC-9-81s and DC-9-87s. Engine vibrations on a plane just before take-off on January 6 and a case of engine trouble the day after prompted investigation on the planes, which have two engines, were made by McDonnell Douglas, now part of Boeing Co. Checks at Pratt & Whitney's New Zealand factory showed there were cracks in the engines' compressor parts, the JAL spokesman said. Japanese aviation authorities have ordered JAS to check the remaining 19 of the 25 DC-9-81 and DC-9-87 planes it owns. The inspections are due to end by Wednesday. Pratt & Whitney was not immediately available for comment, Reuters reports. An industry source said no other Japanese airlines use the planes powered by the same engines, but an estimated 2,100 engines of the same models are in use globally. JAPAN AIRLINES: Cracks Found on 18 More Planes ---------------------------------------------- Japan Airlines Systems Corp. found cracks on the engines of 18 more Japan Air Systems Co. planes on Wednesday, forcing the carrier to cancel 62 of 390 scheduled flights yesterday, the Wall Street Journal said. More than 4,000 passengers were affected by the cancellation that followed an emergency inspection on 25 JAS MD-81 and MD-87 aircrafts earlier Wednesday. The airline had earlier canceled 120 flights affecting 7,000 people Monday and 95 flights affecting 4,900 passengers Tuesday. The airline could not estimate the effect of this flight cancellations to its earnings. Nihon Keizai Shimbun had said JAS could eventually suffer as much as JPY1 billion in losses ($9,323,140 million) due to the groundings. "We are still compiling the impact of ticket refunds and have no specific information," an unidentified JAS spokesman told the Wall Street Journal yesterday. "The inspections came after an MD-81 had to abort its takeoff at Fukuoka airport in southern Japan on January 6 due to vibrations in an engine. An MD-87 returned to Kagoshima airport, in southern Japan, the next day after developing a similar problem," the paper said. McDonnell Douglas manufactured all the planes that had developed cracks on their engines. The engines in the planes were made by Pratt & Whitney, a unit of United Technologies Corp. JAS and Japan Airlines Co. set up a holding company, Japan Airlines System Corp., in October 2002, and plan to merge their flight operations in April. MITSUBISHI MOTORS: Rumors of Impending Capital Boost Swirl ---------------------------------------------------------- Talks of a possible capital boost at Mitsubishi Motors Corp. have begun circulating after its shares rallied 11.62% to JPY269 on Monday, Reuters said. The rumors further intensified after the company announced that it would hold an extraordinary shareholders meeting, although it did not say what this meeting would be about. A Reuters source from within Mitsubishi Motors disclosed that the carmaker has been going around asking Mitsubishi group firms to buy stock in the unit so that DaimlerChrysler AG need not participate in a capital injection. Business daily Nihon Keizai reported on Wednesday that Mitsubishi Motors was considering issuing JPY100 billion in new shares to DaimlerChrysler, Mitsubishi Heavy and Mitsubishi Corp. It is doubtful, however, that DaimlerChrysler would take up new shares, as it had said in the past it would not increase its 37% stake until the Japanese firm improved its finances. Mitsubishi Heavy and Mitsubishi Corp, along with other group firms, have a combined holding of 33.8 percent in Mitsubishi Motors. Reuters says the carmaker needs a capital injection after absorbing the problems at a U.S. finance unit. Analysts say, however, that even with a large capital boost, Mitsubishi will continue to struggle. Some even say the capital boost is in fact an indication that its three-year restructuring effort was a failure. "Last week Mitsubishi Motors said it would sell a 22 percent stake in Mitsubishi Fuso Truck & Bus to DaimlerChrysler AG for 52 billion yen ($489 million)," according to Reuters. "The money comes on top of around 130 billion yen it obtained in the initial Fuso spin-off and there is speculation that Mitsubishi will sell its remaining 20 percent stake in Fuso to Mitsubishi group firms." "Mitsubishi gains some credibility but extra funds are not going to immediately lead to new vehicle sales and an improved performance," Reuters quoted Seiji Sugiura, an auto analyst at Nomura Securities. "With a less than dynamic vehicle line-up, Mitsubishi Motors' near-term outlook will be determined by how well it manages to clean up the mess at its U.S. finance unit and how well it weathers the price war there, analysts say," according to Reuters. NIPPON SHINPAN: Finalizes Merger Agreement with UFJ Group --------------------------------------------------------- UFJ Group will become the No.1 credit card operator in Japan by March 2005 when it merges with Nippon Shinpan Co., according to Japan Today. The two companies yesterday said they have finalized their strategic tie-up plan. "Under it, UFJ Bank will invest more money in Nippon Shinpan, a move made known when it was announced in late November that Nippon Shinpan would become a consolidated subsidiary of UFJ Bank," Japan Today said. ========= K O R E A ========= KIA MOTORS: Carnival Model Fails Emission Test; Recall Ordered -------------------------------------------------------------- More than 85,000 Carnival minivans have been ordered recalled by the government, which found excessive level of nitrogen oxide in the exhaust of the car, Agence France-Presse said Tuesday. This is the second recall order for the Hyundai Group, which owns Kia Motors and together control more than 70% of the Korean car market. In 1995, the group recalled 57,000 Elantras over a similar pollution level violation. The latest recall will start next month, according to the report. KYOBO LIFE: Ordered to Pay KRW252 Billion in Tax Arrears -------------------------------------------------------- Loss-making Kyobo Life Insurance faces a KRW252 billion- tax bill due to its failure to list on the Korea Stock Exchange last year, The Korea Times said Tuesday. The requirement to list was set by the government when it gave Kyobo Life and Samsung Life a grace period for paying corporate taxes on capital gains they had realized through asset revaluation in 1989 and 1990. The two were required to list on the local bourse on or before 2003. The failure to list will also cost Samsung KRW320 billion, according to the report. "We were asked to pay a total of 252 billion won in taxes, including 66 billion in corporate taxes and additional taxes till the end of this month," a Kyobo official, reached by The Korea Times, confirmed. Both insurance companies argue the delay is not their fault and, instead, blamed regulators who they claim had failed to make appropriate listing measures. "The two companies plan to pay the taxes first, and seek a refund through administrative lawsuits," The Korea Times said. Kyobo Life Insurance has posted net losses for four years in a row, according to TCR-Asia Pacific in its report in April last year. The firm incurred a net loss of KRW678 billion in 2001, KRW277 billion in 2000, KRW368 billion in 1999 and KRW437 billion in 1998. Kyobo earned KRW6.9 trillion in the 2001 fiscal year (from April 2001 to March 2002), down by KRW3.1 trillion from 2000. In addition to its poor sales performance, the company is also struggling to retain disgruntled clients. LG CARD: Civic Group Accuses LG Cable Execs of Insider Trading -------------------------------------------------------------- Twenty-five executives of LG Cable, a unit of LG Group, are facing charges of insider trading brought by the People's Solidarity for Participatory Democracy (PSPD). According to The Korea Times, the civic group, which filed the complaint on Tuesday, anchored its case on suspicion that the executives avoided several billions of won in losses after accessing insider information about LG Card's financial health. The executives, according to the report, dumped a 2.64 percent stake or 3,147,189 shares in LG Card from November 7 to November 21. The complaint claims that the timing of this divestment could not be more perfect. On November 21 the credit card company suspended its cash advance services due to cash flow problem. This suspension precipitated LG Card's steep dive from a high of KRW13,900 on November 7 to KRW5,880 on November 27. Last Monday, LG Card shares closed at KRW600, the report said. "[The] LG Card crisis hit the financial market at the end of November but the 25 individuals evaded losses totaling 3.8 billion won; thanks to the stock selling," The Korea Times quoted PSPD official Kim Sang-jo. LG Cable Spokesman Jang Young-ho denied the allegation: "The sale was inevitable as we are making gradual steps to be spun off from the LG Group since 2002." He said there was nothing illegal about the transaction since the executives had been selling their 15 percent stake the past two years. "They were supposed to sell all the shares by December 2003 when LG Cable became independent from the parent group." Meanwhile, unionized workers of LG Investment & Securities asked the Financial Supervisory Service (FSS) to investigate LG Group Chairman Koo Bon-moo and the group's 94 executives, including the 25 individuals, for the questionable stock trading. The union claims several investors and employees of LG Investment and LG Card sustained huge losses due to the alleged insider trading. =============== M A L A Y S I A =============== PAN PACIFIC: Approval of Extension of Audit Remains Pending ----------------------------------------------------------- Reference is made to the announcement dated July 24, 2003 whereby Alliance Merchant Bank Berhad (Alliance), on behalf of PPAB, announced that the Company had appointed Messrs BDO Binder as the independent audit firm to carry out the investigative audit on the past business losses of PPAB. Messrs BDO Binder is required to complete the investigative audit by 21 January 2004, that is, within six (6) months from the date of the Investigative Auditor's appointment. Alliance, on behalf of PPAB, wishes to announce that the Company had, on January 20, 2004, sought for an extension of time of 3 months from the SC until April 21, 2004 for Messrs BDO Binder to complete the investigative audit of PPAB. The application for the extension of time is currently pending the approval of the SC. This announcement is dated 20 January 2004. PERNAS INTERNATIONAL: Details Latest Transaction Involving Lease ---------------------------------------------------------------- On behalf of the Board of Directors of Pernas International Holdings Berhad (PIHB), Aseambankers Malaysia Berhad (Aseambankers) hereby announces that on 19 January 2004 a Sale and Purchase cum Surrender of Lease Agreement (Agreement) was entered between Pernas Properties Sdn Bhd (PPSB or the Vendor), a wholly owned subsidiary of Pernas International Holdings Berhad ("PIHB"); Sovereign Place Sdn Bhd (SPSB or the Lessee), a wholly owned subsidiary of Tradewinds (M) Berhad (TWS) and IJM Properties Sdn Bhd (IJMP or the Purchaser), a wholly owned subsidiary of IJM Corporation Berhad (IJM). Under the terms of the Agreement: (i) SPSB would surrender the lease with a remaining tenure of approximately 79 years on the pieces of land identified as Geran 30000 Lot 1724, Geran 7162 Lot 1512, Geran 7158 Lot 1508 and Geran 7157 Lot 1507 all in Seksyen 46, Bandar Kuala Lumpur, Daerah Kuala Lumpur, Negeri Wilayah Persekutuan (Land)(Lease) for a cash consideration of RM93 million (Lease Surrender Consideration) (Proposed Surrender of Lease); and (ii) IJMP would acquire PPSB's freehold interest in the Land for a cash consideration of RM7 million (Land Purchase Consideration) (Proposed Disposal). (The Proposed Surrender of Lease and Proposed Disposal shall collectively be referred to as the "Proposed Surrender of Lease and Disposal"). Further details of the Proposed Surrender of Lease and Disposal, the rationale for the Proposed Surrender of Lease and Disposal, the effects of the Proposed Surrender of Lease and Disposal, the conditions for the Proposed Surrender of Lease and Disposal, the advisers, the directors' recommendation, the estimated time frame for completion and the documents for inspection are as per the full announcement attached. To view full copy of the Proposed Surrender of Lease and Disposal, click http://announcements.klse.com.my/EDMS/edmsweb.nsf/ba387758ae3741 2b482568a300466fb6/482568bb00440ef648256e21003f964f/$FILE/PIHBan nv2.3(200104).doc PWE INDUSTRIES: Details Proposed Corporate Restructuring Plan ------------------------------------------------------------- (1) Introduction We refer to the requisite announcement of PWE dated 16 July 2003 (RA) and the announcement on 10 October 2003 in relation to the Proposed Corporate Restructuring of PWE. Following the announcements above, on behalf of the Board of Directors of PWE, PM Securities Sdn Bhd (PM Securities) wishes to announce certain revisions to the Revised Proposed Acquisition of BBMSB (as set out in the announcement dated 10 October 2003) pursuant to the Proposed Corporate Restructuring of PWE as follows: (i) The Proposed Acquisition of BBMSB shall be further revised to involve the acquisition of the entire issued and paid-up share capital of Bintang Bulk Mover Sdn Bhd ("BBMSB") for a consideration of RM95,117,949 to be satisfied by way of issuance of: (a) 168,235,898 new ordinary shares of RM0.50 each in Bintang Mover Berhad (BMB) (BMB Shares) at par; and (b) 22,000,000 new redeemable convertible preference shares of RM0.50 each in BMB (RCPS) at par, as compared to RM11,000,000 nominal value of Redeemable Convertible Unsecured Loan Stocks (RCULS) as announced earlier [Revised Proposed Acquisition of BBMSB (January 2004)]. Further details of the RCPS are set out in Attachment I of this announcement. (ii) The securities to be set aside under moratorium requirements shall be revised as follows: As per Revised Proposed Acquisition of BBSMB Securities Total Value % of Aggregate to be placed under Consideration Moratorium by the Vendors RM % 78,000,000 BMB shares 39,000,000 39.0 RM 11,000,000 nominal 11,000,000 11.0 Value of RCULS Total 50,000,000 50.0 As per Revised Proposed Acquisition of BBMSB (January 2004) Securities Total Value % of Aggregate to be placed under Consideration Moratorium by the Vendors RM % 78,000,000 BMB shares 39,000,000 39.0 22,000,000 RCPS 11,000,000 11.0 Total 50,000,000 50.0 Pursuant to the abovementioned revision, PWE, BMB and the vendors of BBMSB had on 20 January 2004 entered into a Second Supplemental Agreement in relation to the Revised Proposed Acquisition of BBMSB (January 2004) ("Second Supplemental Agreement") which is supplemental to the conditional Sale and Purchase Agreement dated 16 July 2003 ("SPA") and the Supplemental Agreement dated 10 October 2003 ("First Supplemental Agreement"). The Company, BMB and the vendors of BBMSB have also vide the Second Supplemental Agreement confirm, ratify and agree that whilst the Revised Proposed Settlement (as defined in the announcement dated 10 October 2003) is conditional upon the Revised Proposed Corporate Restructuring of BMB (as defined in the announcement dated 10 October 2003) becoming unconditional, the Revised Proposed Corporate Restructuring of PWE will not be conditional upon the Proposed Settlement being approved or successfully implemented. Further to the above, on behalf of PWE, PM Securities also wishes to announce that the Company had on 20 January 2004 entered into the following Second Supplemental Agreements: (i) Second Supplemental Agreement between PWE, BMB, Encik Ahmad Shalimin bin Ahmad Shafie and Encik Shahrill Sharwani bin Ahmad Fuaad in relation to the Proposed Acquisition of AWSB; (ii) Second Supplemental Agreement between PWE, BMB and Encik Mohammed Ridzal bin Ahmed Rasiddi in relation to the Proposed Acquisition of JTSB; and (iii) Second Supplemental Agreement between PWE, BMB and Encik Mohammed Ridzal bin Ahmed Rasiddi in relation to the Proposed Acquisition of PKSB. The Proposed Acquisitions (as further revised pursuant to the Revised Proposed Acquisition of BBMSB (January 2004)), Proposed Special Issue, Revised Proposed Exemption, Revised Proposed Share Exchange, Revised Proposed Placement and Proposed Transfer of Listing shall hereinafter be referred to as the "Revised Proposed Corporate Restructuring (January 2004)". The Revised Proposed Corporate Restructuring (January 2004) and the Revised Proposed Settlement shall hereinafter be referred to as the "Revised Proposals (January 2004)". The principal terms of the other proposals as comprised in the Revised Proposals (January 2004) shall remain unchanged, save for any consequential revisions pursuant to the Revised Proposed Acquisition of BBMSB (January 2004). Details of the Revised Proposed Acquisition of BBMSB (January 2004) are set out below. (2) Revised Proposed Acquisition Of BBMSB (January 2004) The Revised Proposed Acquisition of BBMSB as per the announcement dated 10 October 2003 involves the acquisition of the entire issued and paid-up share capital of BBMSB comprising 1,000,000 ordinary shares in BBMSB by BMB from Mr. Yap Hock Sing ("YHS") and Mr. Yap Hock Tian ("YHT") for an aggregate purchase consideration of RM95,117,949 to be satisfied by way of issuance of: (i) 168,235,898 BMB Shares at an issue price of RM0.50 per BMB Share; and (ii) RM11,000,000 nominal value of RCULS at 100% of the nominal value of the RCULS. The Board of Directors of PWE has agreed with the vendors of BBMSB to revise the terms of the Revised Proposed Acquisition of BBMSB to involve the acquisition of the entire issued and paid- up share capital of BBMSB by BMB from YHS and YHT for an aggregate purchase consideration of RM95,117,949 to be satisfied by way of issuance of: (i) 168,235,898 BMB Shares at an issue price of RM0.50 per BMB Share; and (ii) 22,000,000 RCPS at an issue price of RM0.50 per RCPS. Name of Shareholdings Purchase No. of No. of Vendor in BBMSB Consideration BMB shares RCPS to to be to be issued issued # of % RM shares Yap 750,000 75.0 71,338,462 126,176,924 16,500,000 Hock Sing Yap 250,000 25.0 23,779,487 42,058,974 5,500,000 Hock Tian Total 1,000,000 100.0 95,117,949 168,235,898 22,000,000 Pursuant to the revised mode of satisfaction of the purchase consideration, the securities to be placed under the moratorium requirement under the Proposed Moratorium On Sale (as defined in the RA) shall be revised as follows: Securities to Total Securities to be Total % of be issued Value placed under Value Aggregate to the Proposed Moratorium by the Consideration Vendors RM RM 178,000,000 89,000,000 78,000,000 39,000,000 39.0 BMB Shares BMB Shares 22,000,000 11,000,000 22,000,000 11,000,000 11.0 RCPS RCPS Total: 100,000,000 50,000,000 50.0 After taking into account the Revised Proposed Acquisition of BBMSB (January 2004). No RCULS will be issued pursuant to the Revised Proposed Acquisition of BBMSB (January 2004). (3) Financial Effects Of The Revised Proposals (January 2004) The financial effects of the Revised Proposals (January 2004) are set out in Attachment II of this announcement. (4) Directors' Statement The Board of Directors of PWE is of the opinion that the Revised Proposed Acquisition of BBMSB (January 2004) is in the best interest of the Company and its shareholders. (5) Compliance with Guidelines The terms of the Revised Proposed Acquisition of BBMSB (January 2004) have been arrived at consistent with the Policies and Guidelines on Issue/Offer of Securities and the subsequent amendments/revisions issued by the Securities Commission ("SC"). (6) Submission to Authorities The relevant applications for the Revised Proposed Acquisition of BBMSB (January 2004) are expected to be submitted to the regulatory authorities including the SC and Foreign Investment Committee in due course. This announcement is dated 20 January 2004. Copy to: Securities Commission Attn: Mr. Wong Wing Seong To view salient terms of the Redeemable Convertible Preference Shares, click http://announcements.klse.com.my/EDMS/edmsweb.nsf/ba387758ae3741 2b482568a300466fb6/482568bb00440ef648256e21003af96c/$FILE/Salien t%20Terms%20of%20RCPS-Attachment1.doc To view financial effects of the Revised Proposals, click http://announcements.klse.com.my/EDMS/edmsweb.nsf/ba387758ae3741 2b482568a300466fb6/482568bb00440ef648256e21003af96c/$FILE/Financ ial%20Effects-Attachment2.doc WING TIEK: Posts Update on Corporate Debt Restructuring ------------------------------------------------------- [Note: For consistency, the abbreviations used throughout this announcement has the same meaning as previously defined in the Company's announcement dated August 30, 2002. A copy of this announcement is available at http://bankrupt.com/misc/wing_tiek.doc] As part of the CDRS, WTHB's listing status on the Main Board of the Malaysia Securities Exchange Berhad (MSEB) will be transferred to JAKS Resources Berhad (JAKS Resources), whereby the entire enlarged issued and paid-up share capital of JAKS Resources will be listed in place of the issued and paid-up share capital of WTHB. Upon listing of JAKS Resources on the Main Board of the MSEB, approximately 21.31% of the enlarged issued and paid-up share capital of JAKS Resources will be held by public shareholders as defined under the Listing Requirements of the MSEB. As such, there will be a shortfall of 3.69% from the 25% public spread requirement pursuant to Chapter 3.05 of the Listing Requirements of MSEB, resulting in a non-compliance of the Listing Requirements of MSEB. In connection to the above, JAKS Resources had on 13 January 2004 submitted an application to the MSEB for an extension of time of six (6) months to meet the 25% public shareholding spread pursuant to Chapter 3.05 of the Listing Requirements of the MSEB from the date of listing of JAKS Resources on the Main Board of the MSEB (Listing Date) (Application). As part of the Application, Ang Lam Poah, a substantial shareholder of JAKS Resources, has given an undertaking to the MSEB to reduce his equity interest in JAKS Resources by placing out 12,000,000 ordinary shares of RM1.00 each in JAKS Resources held by him, to parties deemed public shareholders before the expiry of 6 months from the Listing Date to assist JAKS Resources to meet the public shareholding spread requirement. The placement by Ang Lam Poah, if carried out would have to comply with the relevant requirements including the rules of the Malaysian Central Depository Sdn Bhd and the Listing Requirements of the MSEB, if required. Any approvals that may require for placement from any authority will have to be sought prior to the placement. In this connection, the Board of WTHB wishes to announce that the MSEB had on 16 January 2004 approved the Application of JAKS Resources for an extension of time of 6 months, which shall commence on the Listing Date and expires at the end of the said 6 months, to comply with the public shareholding requirement. In addition, JAKS Resources is required to make follow-up announcements on the following on a bi-monthly basis and no later than 14 days from the expiry of the 2-month period: (a) the status of its plan to meet the 25% public spread. In this respect, JAKS must explain the progress it has made within the last 2 months in relation to its plan to comply with the 25% public spread; (b) if there has been no progress made, an explanation of the reason as to the lack of progress; and (c) and explanation of any steps JAKS Resources has taken in respect of its lack of progress. This announcement is dated 20 January 2004 and is made on behalf of WTHB. ===================== P H I L I P P I N E S ===================== MANILA ELECTRIC: Accused of Overcharging Anew --------------------------------------------- Another accusation of overcharging was brought forward by a group called POWER -- People Opposed to Warrantless Electricity Rates -- on Monday, which claimed that Manila Electric Co. had pocketed PHP225 million in illegal charges in December. The group claims Meralco [rated CC/Negative by S&P] illegally applied in December the 12-centavo provisional increase that the Energy Regulatory Commission had allowed in a November 27 order. Under this order, the commission granted Meralco's petition to impose a 12-centavo provisional increase "effective, with respect to its billing cycles, beginning January 2004" pending the resolution of its petition to increase rates by an average of 13.58 centavos per kilowatt-hour. "Meralco had imposed the increase on the January billing statement of its customers, which partly covers electricity used in December. This, Meralco said, was in line with standard practice," BusinessWorld said Tuesday. But the commission clarified on January 12 that it had actually meant the increase to become effective January 1. By this time, Meralco had already sent out the January billing statements to some of its customers. "The rate increase is bad enough, but Meralco adds more to the woes of the consumers by trickery and dishonesty in the computation, resulting in a new overcharge...," BusinessWorld quoted POWER convenor, Ramon Ramirez. "This is blatant dishonesty on the part of Meralco. If it can do this so openly on the computations of electric bills, it is quite possible that there are other similar computational hocus-pocus that this giant utility company does behind the scene to gain undue advantage over its consumers." "In a study, the group showed that a billing statement sent by Meralco which covers power consumption from Dec. 6 to Jan. 6 multiplied the electricity consumption of a particular customer by the higher rate. Meralco, Mr. Ramirez said, should have pro- rated the increase so that it only covered consumption starting January 1," BusinessWorld said. "Since the arithmetic is elementary, it is not difficult to see that Meralco intentionally computed it that way in order to earn millions through overcharging knowing that consumers won't bother to check how their bills are computed. After all, it is a very rare consumer who will ask for the latest schedule of rates and who will double check the bill before paying," Mr. Ramirez told BusinessWorld. Mr. Ramirez estimates that the alleged overcharging has so far cost consumers as much as PhP300 million, if one were to add the overcharges this month. He said Meralco earns an additional PHP7.5 million a day from the illegal rate increase. He urged the power distributor re-compute the billings and return the overcharges to customers immediately. "It must also issue a public apology to its more than four million consumers for the overcharging," he added. POWER, according to BusinessWorld, is a broad alliance of advocacy and consumer groups, including militant group Bagong Alyansang Makabayan (Bayan), the National Association of Electricity Consumers for Reforms, Agham, Alerto Mamimili, and Consumers Union of the Philippines. "Meralco should be severely sanctioned and its franchise revoked for committing such a blatantly illegal act. The ERC commissioners on the other hand have proven to be grossly incompetent in carrying out their duties to protect the consumers. They should resign or else face ouster by the people," BusinessWorld quoted Bayan Spokesman Renato Reyes in its report Tuesday. Bayan also called on Meralco to freeze the funds it collected between December 1 and January 15 because this would be contested. In addition, it called on consumers to suspend payment of their electric bills pending a re-computation, adding that Meralco should be cited for contempt by the commission for its failure to properly comply with its order. Meralco, for its part, said in a statement that it implemented the increase "in a manner consistent to previous rulings on what a billing cycle is." "There was no attempt to take advantage of our customers," Meralco Corporate Communications head Elpi Cuna said in the statement. He added the commission's clarification that the rate increase was to begin January 1 was "contrary to the generally accepted definition of a billing cycle." "(It) is a process that starts with meter reading, followed by billing, then collection," the statement reads. "With its over four million customers, meters are read on a staggered basis. A reading in Jan. 1, 2004, which is the start of the January billing cycle, will comprise mainly of December consumption. A reading in January 31, the end of the January 2004 billing cycle, will consist of January consumption. Depending on when the specific meter is read, the increase will apply either to consumption in December 2003 or January 2004, or partly in December 2003 and another part in January 2004," the statement added. This is not the first time that Meralco was accused of overcharging. The Supreme Court, in May last year, ordered the power distributor to refund customers some PHP29 billion for surcharges covering between February 1994 to May 2003. MANILA ELECTRIC: Skirts Default with Timely Debt Pact ----------------------------------------------------- Embattled Manila Electric Co. got a much-needed reprieve in its debt repayments yesterday after creditors extended the maturity of the company's US$80 million short-term loan. According to AFX-Asia, the debt would have matured yesterday had Meralco President Jesus Francisco not reached an agreement with creditors yesterday. He did not disclose details of the pact in a phone interview with the newswire. MANILA ELECTRIC: Cancels Debt Offering, Court-mandated Refund ------------------------------------------------------------- Manila Electric Co. scrapped yesterday its planned refinancing via an international capital markets transaction next month. As a result of this cancellation, Meralco said it is "[no longer] in a position to undertake a six-month refund period for Phase III," referring to the Supreme Court mandated order in May last year to refund consumers some PHP28 billion in surcharges. To view full copy of this press release, click http://bankrupt.com/misc/meralco.pdf MANILA ELECTRIC: Oral Argument on Rate Hike Stoppage Set Jan. 27 ---------------------------------------------------------------- The Supreme Court has set for oral argument on January 27, 2004 the case filed by a civic group that sought a temporary restraining order stopping the implementation of Meralco's 12- centavo provisional increase. To view full copy of this press release, click http://bankrupt.com/misc/meralco_court.pdf NATIONAL STEEL: Majority of Creditors Accept GIHI Offer ------------------------------------------------------- Indian steel giant, Global Infrastructure Holdings Inc. (GIHI), now has the backing of 60% of National Steel Corporation's (NSC) banking creditor, BusinessWorld said yesterday. This is reportedly enough to snatch the steel-maker since the bidder needed only a "simple majority approval." Sources told the paper that it was the Indian firm's increased offer to PHP13.25 billion and the reduction of the payment period to eight from 10 years that finally got the other creditors on board. The Philippine National Bank -- NSC's largest creditor -- is believed to be the first to accept the bid, according to TCR-Asia Pacific. The only other bidder for NSC is LNM Holdings of London, which offered PHP7 billion, which included an improved up-front cash offer of PHP2.5 billion. The NSC management, however, picked the GIHI bid and granted the group a 90-day exclusive negotiating period that was to end by next month. A BusinessWorld source said creditor banks are now finalizing the memorandum of agreement needed to prepare the acquisition contract. "The [agreement] would be signed as soon as possible," the source said, adding that after the signing, creditor banks would approve a detailed acquisition agreement. It is not yet known which creditor banks approved Global's offer. Earlier, LNM Holdings claimed that Credit Agricole and China Bank had rejected GIHI's offer. NSC's creditors include Philippine National Bank, Land Bank of the Philippines, UOB (Westmont Bank), Allied Bank, Asian Bank, Bank of Commerce, China Bank, Equitable PCIBank, Rizal Commercial Banking Corp., Traders Royal Bank, Credit Agricole Indosuez, Wise Cito, and United Coconut Planters Bank. Of the banks, PNB has the biggest stake, followed by Land Bank of the Philippines. Based in Iligan City, the steel-maker stopped operating in 1999 after failing to pay debts of some PHP16 billion, leaving some 4,000 workers jobless. The company blamed cheaper imported steel from Russia and South Africa for its woes. Thereafter, operations were taken over by Malaysian investors, Hottick, but it failed to revive the company. Eventually, the Malaysian government's debt rehabilitation agency took over the stake. The debt rehabilitation agency then worked with Philippine creditor banks to revive the steel plant, the paper said. PHILIPPINE LONG: Execs Won't Show up in Honolulu Hearing Today -------------------------------------------------------------- Filipino executives invited by the Federal Bureau of Investigation and the U.S. Department of Justice to appear before a Honolulu grand jury are expected to skip the proceedings today. Sources at the Philippine Long Distance Telephone Co. (PLDT) told the Philippine Daily Inquirer that its executives will not appear in court Wednesday upon the advice of Sullivan & Cromwell as well as by Covington & Burley, the two blue-chip American law firms hired by PLDT. The reason: the FBI agents failed to properly serve the majority of the subpoenas. Aside from the two law firms, PLDT has also hired the services of Francis Lim, a member of the local ACCRA law firm. He is said to have practiced antitrust law in Washington D.C. during the early years of the Corazon Aquino presidency. Other telecom officials summoned to appear before the grand jury, which is looking into alleged anti-trust practices of Philippine telecoms, include those of Digitel of businessman John Gokongwei and the Lopez-owned Bayantel. Digitel is represented by Shearman & Sterling and Perry Pe, a son-in-law of Mr. Gokongwei. Former Philippine Securities and Exchange Commission Chairman Perfecto Yasay Jr. represents Bayatel. PILIPINO TELEPHONE: Takeover by Smart Likely, Say Sources --------------------------------------------------------- Pilipino Telephone Corporation (Piltel) might soon be taken over by sister company Smart Communications Inc., which needs to list on the local bourse on or before August. In its report Tuesday, the Philippine Daily Inquirer said rumors about a backdoor listing for Smart have been going around for some time and it appears that a takeover of Piltel would be the most expedient way to do it. Both Piltel and Smart are subsidiaries of Philippine Long Distance Telephone Co. (PLDT). Sources privy to the plan told the Inquirer a number of key PLDT officials support the plan, which may be decided upon in the next few weeks. Under its congressional franchise, Smart is required to offer 30% of its common shares to the public by August. PLDT President and CEO Manuel Pangilinan had previously said an initial public offering of Smart would likely raise around US$600 million. Meanwhile, Piltel outlined last week a strategic plan to return to positive equity by 2013. It expects to return to profitability this year, with net profit of PHP402.4 million, after a projected net loss of PHP3.33 billion in 2003. It reported a net loss of PHP21.8 billion for 2002, according to the Inquirer. UNIVERSAL RIGHTFIELD: Clarifies News About Abandoned Rehab Plan --------------------------------------------------------------- This in reference to the news article entitled "Universal Rightfield debt relief case denied" published in the January 21, 2004 issue of the BusinessWorld (Internet Edition). The article reported that "(a) Mandaluyong judge yesterday denied the petition of construction firm DM Consunji to rehabilitate listed Universal Rightfield Holdings. Regional Trial Court Judge Edwin D. Sorongon junked the corporate recovery bid due to a technicality after petitioner DM Consunji claimed there were no similar pending cases involving Universal Rightfield in any local court. But in fact, a PHP2 billion civil case is also filed at the sala of Judge Sorongon involving Universal Rightfield, parent DMCI Holdings, and DMCI subsidiaries Universal Leisure Club and Universal Leisure Corp. x x x" Universal Rightfield Property Holdings, Inc. ("UP" or the "Company"), in its letter dated January 21, 2004, stated that: "x x x Please be advised that we are not in any position to declare the veracity of the news article today. As you may have noticed, it is only BusinessWorld thru its Senior Reporter, Ms. Cecile S. Visto, who is making close monitoring on the subject. Further, it (sic) quite obvious that efforts are being done by certain individuals having a keen interest in discrediting the Corporation. As we have advised you earlier, we will disclose all material information as soon as we have received an order from the court." For your information, Jose G. Cervantes Senior Vice President Philippine Stock Exchange ================= S I N G A P O R E ================= SEATOWN CORPORATION: To Apply for Judicial Management Extension --------------------------------------------------------------- The Board of Directors of Seatown Corporation Ltd ("Company") wishes to announce that the Company held an informal creditors' meeting on 17 January 2004. The purpose of the meeting was for the Judicial Manager of the Company, Mr. Nicky Tan Ng Kuang, to inform and update the creditors on the status and duration of the Judicial Management of the Company and related matters. The Judicial Manager of the Company informed the attending creditors that he intends to apply to the High Court to extend the validity of the Judicial Management Order to 26 August 2004 in order to complete the conditional investment agreement entered into between the Company and Hui Yuan Investment Limited ("HY Investment") pursuant to which the Company proposed to acquire all the shares in Wise Glory Group Ltd, a wholly owned subsidiary of HY Investment. SINGAPORE TELECOMMUNICATIONS: Unit Accepts Offer for TMC Stake -------------------------------------------------------------- Singapore Telecommunications Limited ("SingTel") wishes to announce that its wholly owned subsidiary, SingTel Interactive Pte. Ltd. ("SIP") has received an offer from CS Loxinfo Public Company Limited ("CS Loxinfo") to purchase SIP's entire holding of 17,353,601 ordinary shares in Teleinfo Media Company Limited ("TMC"), representing 25 percent interest in TMC, for a cash consideration of THB200 million (approximately SG$8.6 million) or THB11.53 per share. SIP intends to accept the offer subject to the satisfaction of certain conditions and the finalization of definitive documents. TMC is primarily engaged in the directories business in Thailand. SingTel has a 16.81 percent interest in CS Loxinfo. A further announcement will be made in due course. By Order of the Board Chan Su Shan (Ms) Company Secretary =============== T H A I L A N D =============== TPI POLENE: Posts Details of Newly Listed Shares ------------------------------------------------ To: The President The Stock Exchange of Thailand Re: Submission of Form 53-5 Attachment: Form 53-5 TPI Polene Public Company Limited (TPIPL) would like to submit to the Stock Exchange of Thailand Form 53-5 regarding the results of the sale of newly issued ordinary shares of the Company. Please be informed accordingly. Best regards, Prachai Leophairatana Chief Executive Officer (F 53-5) Form of Report to the Stock Exchange of Thailand of the Results of the Sale of Shares TPI POLENE PUBLIC COMPANY LIMITED January 20, 2004 1. Information relating to the share offering Category of shares offered: New ordinary shares Number of shares offered: 300,000,000 shares Offered to: Public Price per share: Baht 37 per share Subscription and payment period: 9.00 a.m. to 4.00 p.m. on January 15 -16, 2004 and 9.00 a.m. to 12.00 a.m. on January 19, 2004 2. Results of the sale of shares : [ / ] totally sold out [ - ]partly sold out, with _____ - _____ shares remaining. The company will deal with the remaining shares as follows: _____ - _____ 3. Details of the sale Thai investors Foreign investors Juristic Individuals Juristic Individuals Total persons persons No. of persons 162 12,355 4 150 12,671 No.of Share 15,243,900 279,356,000 2,760,000 2,640,100 300,000,000 Subscribed Percentage of total shares offered for sale 5.08 93.12 0.92 0.88 100.00 (4) Proceeds from the sale of shares Total amount 11,100,000,000 Baht Less expenses: Fee for application for offering of newly-issued shares 50,000 Baht Registration statement filing fee 8,880,000 Baht Capital increase registration fee 250,000 Baht Placement fees 333,000,000 Baht (under a condition that the Company is able to sell the 300,000,000 shares in full) Printing costs of prospectus, subscription forms and other documents 900,000 Baht Advertising and publication costs 100,000,000 Baht Other expenses 5,000,000 Baht Total 448,080,000 Baht Net amount received 10,651,920,000 Baht The Company hereby certifies that the information contained in this report is true and complete in all respects. Mr. Prachai Leophairatana (Signed) Chief Executive Officer Mr. Prayad Liewphairatana (Signed) President CONTACT: 26/56 New Jun Road, Thungmahamek, Sathon Bangkok Phone: 0-2678-5100, 0-2678-5000 Fax: 0-2678-5001-5 ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania USA, and Beard Group, Inc., Frederick, Maryland USA. Lyndsey Resnick, 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. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $575 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***