/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/040312.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, March 12, 2004, Vol. 7, No. 51 Headlines A U S T R A L I A COLES MYER: Peter Scott Replaces Head of Liquor Unit COLES MYER: Discloses Increase in Profit NATIONAL AUSTRALIA: Scandal Stalls Easing of Four Pillars: Fels NATIONAL INVESTMENT: Kaye's Strategies Unrealistic, Says Analyst QANTAS AIRWAYS: Posts Changes of Directors Interests C H I N A & H O N G K O N G REGENT EXCEL: Court Sets Winding up Hearing April 14 I N D O N E S I A BANK MANDIRI: Jakarta Bourse Suspends Mandiri Share Trading SEMEN GRESIK: Expects $1.4M Net Profit in 4Q 2004 J A P A N ITOCHU CORPORATION: Senior Unsecured Rating Upgraded to "BB+" JAPAN AIRLINES: Ups Net Loss Forecast to JPY89 Billion KANEBO LTD.: Entire Operations To Be Supported By IRCJ KANEBO LTD.: Appoints New President MITSUBISHI MOTORS: U.S. Sales Continue to Drop K O R E A SK CORPORATION: Stage Set for SK Corp.-Sovereign Asset Showdown M A L A Y S I A GOPENG BERHAD: Issues Members' Voluntary Liquidation Notice METROPLEX: Restraining Order Extended PROMET: Details Securities' Removal PROTON: Sale of Mitsubishi Stake Confirmed PSC INDUSTRIES BERHAD: Revising Debt Restructuring Scheme RNC CORP: Proposes Restructuring Scheme TENAGA NASIONAL: Sells Majority Stake in TNB Coal to Techventure UCP RESOURCES: Proposes Restructuring Scheme UNIPHOENIX: De-lists Securities P H I L I P P I N E S ATLAS CONSOLIDATED: Issues Notice on Certificate of Compliance MANILA ELECTRIC: Seeks Approval of Second GRAM Application NATIONAL BANK: Raises P37M in Cebu Sale S I N G A P O R E Chartered Semiconductor: Shares Slide Again L & M: Issues Notice of Extraordinary General Meeting T H A I L A N D BANGKOK LAND: Bond Buyback Nets Profit of THB210M KRUNG THAI: Offers Fixed-Rate Mortgages SAMART CORPORATION: Clarifies Article on Fund Raising Plan SAMART CORPORATION: Plans To Raise THB1.6B Within 2 Months - - - - - - - - ================= A U S T R A L I A ================= COLES MYER: Peter Scott Replaces Head of Liquor Unit ---------------------------------------------------- Coles Myer's relocation of liquor group headquarters to Melbourne from Sydney is a start of a raft of changes some observers are expecting, The Courier-Mail discloses. The company announced on Wednesday, its Officeworks managing director Peter Scott would replace the retiring head of its liquor unit, Craig Watkins, who preferred to leave the company rather than relocate, was responsible for the controversial bottle-shop expansion. Chief Executive, John Fletcher quarantined Officeworks from analyst scrutiny that is why little is known about Mr. Scott's management style. He joined the company as an executive trainee in 1976 and has worked in most of Coles Myer's divisions, and gains respect for having build the Officeworks from scratch. K-mart and Officeworks sales results are lumped together, but once Officework sales reaches $1 billion, the business's operations will be more transparent, Mr. Fletcher said. COLES MYER: Discloses Increase in Profit ----------------------------------------- Coles Myer Limited announced on Thursday a net profit after tax of $349.5 million for the half year ended 25 January 2004, up 28.3percent on prior year underlying profit. Sales rose by 13.3 percent to $15.7 billion. "This is a great result-the highest interim profit and the strongest balance sheet in Coles Myer's history," Chief Executive Officer John Fletcher said. "It is another major step in Coles Myer's Strategy to be Australia's number one retailer in all of our brands. The business is delivering on its goals of growing shareholder value through delighting our customers and being the best team," Mr. Fletcher said. To view full copy of the press release, click http://bankrupt.com/misc/colesmyer4_031104.pdf NATIONAL AUSTRALIA: Scandal Stalls Easing of Four Pillars: Fels --------------------------------------------------------------- The currency trading scandal that recently hit the National Australia Bank (NAB) has set back by years any attempt to soften the "four pillars" policy, according to Allan Fels, former head of the Australian Competition and Consumer Commission (ACCC), The Australian reports. In a Sydney conference, Professor Fels, now the dean of the Australia and New Zealand School of Government after his retirement from the ACCC last year, said that with the scandal, no one would seriously suggest a change to the policy for years. "It's extended the life of the policy, just that single incident, not to mention HomeSide," Professor Fels told the Australian Financial Markets Association conference. The "four pillars" policy was designed to prevent a merger between any two of the four major banks - NAB, Commonwealth Bank, ANZ and Westpac. HomeSide, on the other hand, was NAB's US mortgage business, which it sold in 2001 after being forced to write down its value by $4 billion. The losses on foreign currency options have cost NAB $360 million Four traders were suspended and investigations into the bank's risk management practices were conducted. Professor Fels said the NAB scandal had also soured public opinion against the banks. "If any politician were to stand up and claim publicly that really it wouldn't be such a bad thing if there were mergers between the Big Four banks ... they would be laughed out of court," he said. The government preserves the right to maintain the policy because of the proposed free trade agreement between the US and Australia. However, according to Professor Fels, the Government might instead agree to the foreign takeover of one of the four majors, although there was not much scope left for the banks to expand by acquisition or merger in Australia. "There are probably rather slim pickings for big banks with regard to mergers within the banking sector," he said. He added that for Australian banks to become a greater competitive force in a global market, the best way to do so was to concentrate on running their existing businesses well. He also noted that the idea that ruthless cost cutting was good for banks in the longer term is being reassessed, since some US studies revealed that closing branches did not necessarily save money. NATIONAL INVESTMENT: Kaye's Strategies Unrealistic, Says Analyst --------------------------------------------------------------- A top property analyst testified in Federal Court yesterday that the investment strategies of National Investment Institute Administrator Henry Kaye were neither practical nor realistic, reports The Courier-Mail. On the second day of the hearing in the case filed against Kaye by the Australian Competition and Consumer Commission (ACCC), property consultant Scott Keck told the court strategies taught by Kaye in his property investment course were not "practicably realistic". "I would say that it would be an extremely difficult thing to do to achieve what is promised through the strategies he proposes," he said. "Embedded within the course strategies, it is my belief, is that the course suggests it can be easily implemented. This course suggests that a student could walk out of the institute onto the footpath, approach someone, and if the property is good enough, they'll invest." The ACCC has accused Kaye and his National Investment Institute of falsely claiming in print, radio and internet advertisements that his property investment strategies could turn ordinary Australians into millionaires by enrolling in his Investment Mastery Program for a $15,000 fee. But Kaye's lawyer, Caroline Kenny, said the advertisements were a challenge designed to demonstrate to critics that the strategies worked. "The Australian public are not nearly so gullible as the complainants contend," she said. "They would treat the advertisements with a degree of cynicism." The court also heard other expert opinion that Kaye's strategies of investing in property without equity or debt could work. Brian Dudakov, a director of the consultancy firm Urbis JHD, said it was possible for individuals to follow the strategy of extensively researching an area, finding a property and then finding partners to fund the purchase. "If the deal is good then I believe the financiers can be found," he said. The strategies, he said, were "largely commonsense." It was possible, as suggested in Kaye's strategies, to find undervalued properties or properties that had not sold at auction and represented a good deal," Mr. Dudakov said. "I think you can make a good deal of money in a short period of time." In November last year, Kaye put NII into administration, owing a potential 3500 creditors $60 million. Last month creditors voted to put the company into liquidation. QANTAS AIRWAYS: Posts Changes of Directors Interests ---------------------------------------------------- Qantas Airways Limited gives the Australian Stock Exchange the information under listing rule 3.19A.2 and as agent for the director for the purpose of Section 205G of the Corporations Act. Name of Director: Peter Allan Gregg Date of Last Notice: 3 October 2003 To view full copy of notice, click http://bankrupt.com/misc/qantasairways2031104.pdf ============================ C H I N A & H O N G K O N G ============================ REGENT EXCEL: Court Sets Winding up Hearing April 14 ---------------------------------------------------- The High Court of Hong Kong will hear on April 14, 2004 at 10:00 a.m. the petition seeking the winding up of Regent Excel Limited. Law Kit Man of Room 2125, 21/F., Hang Wo House, Tai Wo Estate, Tai Po, New Territories, Hong Kong filed the petition on February 13, 2004. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, which holds office on the 34th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai Hong Kong. ================= I N D O N E S I A ================= BANK MANDIRI: Jakarta Bourse Suspends Mandiri Share Trading ----------------------------------------------------------- Due to a government plan to divest a stake in PT Bank Mandiri Tbk, the Jakarta Stock Exchange will suspend share trading in Indonesia's top bank starting on Thursday until further notice, IndoExchange reports, citing Reuters. In a statement, the bourse said, "Following the plan to further divest the government's stake in Bank Mandiri...the bourse has decided to suspend the shares trading on Thursday until further notice." The government started the book building to sell a 10 percent stake of Mandiri late on Wednesday and will close it on Thursday afternoon, according to Parikesit Suprapto, a senior official at the state enterprises ministry. "The results of the book building are expected tonight," he told Reuters. He did not give further details. Mandiri shares closed 1.7 percent higher at IDR1,500 on Wednesday. Based on the market price, the sale would be worth IDR2.97 trillion. The state-owned Danareksa Sekuritas and PT UBS Securities Indonesia, a UBS Warburg affiliate, have been appointed by the government as the joint book runners. SEMEN GRESIK: Expects $1.4M Net Profit in 4Q 2004 ------------------------------------------------- PT Semen Gresik Tbk and PT Indocement Tunggal Prakarsa Tbk, Indonesia's top two cement makers are expected to report higher quarterly profits this month, buoyed by an up tick in construction. IndoExchange reports. Ahmad Solihin, analysts at Mandiri Sekuritas said a lower demand for cement in the first half was due to high energy and utilities prices but it started to recover in the second half. The construction sector was expected to benefit from interest rate cuts meant to boost loan growth, which in turn would aid housing demand and construction, said Norico Gaman, an analyst at BNI Securities. Semen Gresek, a state run company is expected to post a 12 billion rupiah ($1.4 million) net profit for the fourth quarter, compared with a 16 billion rupiah loss in 2003, according to Reuters Estimates. Sales are expected to drop 9.5 percent to 1.2 trillion rupiah. Mexican cement firm Cemex owns 25.5 percent of Semen Gresek, which takes about 50 percent of the local market. Analysts are expecting the company to increase profits 31.5 percent to 367 billion rupiah this year. Some analysts estimated the cement market would grow five to eight percent this year, much higher than Indocement's estimate of one percent growth, on expected government spending on projects ahead of the presidential elections in July. "We expect a turnaround in 2004. We expect cement demand to grow eight percent, supported by state projects coupled with an increase in demand from the property sector on the back of the low interest rate environment," BNP Paribas Peregrine said in a research report. Semen Gresik and Indocement control almost 80 percent of the Indonesian market. ========= J A P A N ========= ITOCHU CORPORATION: Senior Unsecured Rating Upgraded to "BB+" ------------------------------------------------------------- Fitch Ratings, the international rating agency, has today upgraded Itochu Corporation's (Itochu) Senior Unsecured rating to 'BB+' from 'BB-' (BB minus). Following the upgrade, the rating Outlook is now Stable. The rating action reflects Itochu's improvement in financial profile evident in ongoing asset and debt reduction, and increased capital. Since March 2000, it has reduced assets by 27.1% to JPY4.4 trillion in September 2003, while its debt has dropped 38.8% to JPY2.5 trillion over the same period. Positive net returns for the past three years and equity finance in July 2002 helped improve its shareholders' equity ratio to 10.7% in September 2003 from 4.6% in March 2000. Its net debt/equity ratio also improved to 4.1x from 11.2x during the same period. Itochu's profitability has also shown a notable recovery in the last three years, despite a weak economic climate. Its core earnings grew by 63.2% to a record high of JPY115.5 billion in FYE03 from JPY70.8 billion in FYE00, despite the asset reduction noted. This was driven by a more effective risk management system and disciplined investment practices, as well as continual cost reduction efforts. Its recent performance demonstrates that Itochu has successfully restructured itself into a cost-efficient company, with higher earnings achieved on lower sales and a leaner balance sheet. However, Itochu's key risk concerns of a weak capital base and unstable earnings remain. Its shareholders' equity is still weak compared with its peers', and insufficient to cover the maximum potential loss of assets held and in the long term it needs to boost the equity to a level at or above the maximum amount of potential loss. Moreover, despite its robust core earnings, net profit growth has lagged due to non-recurring charges. Earnings' stability is important for trading houses in order to weather the impact of the macro environment and to generate enough earnings to absorb non-recurring losses. Its robust core earnings, together with lagging net profit, indicate Itochu's lack of earnings' stability. In spite of these issues, however, Itochu has achieved a strong improvement in its post-restructuring earnings and financial profile. JAPAN AIRLINES: Ups Net Loss Forecast to JPY89 Billion ------------------------------------------------------ Citing slow recovery in passenger demand after the SARS outbreak and rising fuel costs, Japan Airlines System Corp broadened Wednesday its net loss forecast for the current business year by 37 percent, Yahoo reports, citing Reuters. The company said the rising price of jet fuel has taken its toll on its earnings, forcing it to trim group operating profit forecast for the coming 2004/05 business year by nine percent to JPY81 billion. Japan's top carrier said, for the year to March 31, group net loss will amount to JPY89 billion, up from its previous estimate of JPY65 billion. Last year, the company forecasted profits of JPY11.65 billion. Earlier, the company blamed the war in Iraq for the sharp drop in passenger traffic on its international routes. This is partly the reason why it plans to cut 8% of its workforce by 2007. The company has been stepping up cost cuts since its revenues nose-dived in early 2003 due to the SARS outbreak and the war in Iraq. KANEBO LTD.: Entire Operations To Be Supported By IRCJ ------------------------------------------------------ Instead of just bailing out Kanebo Ltd.'s cosmetics business, the Industrial Revitalization Corp. of Japan (IRCJ) decided Wednesday to support the company's entire operations, says Japan Today, citing Kyodo News. Kanebo, Japan's second-largest cosmetics maker after Shiseido Co., will use the state-backed body's financial assistance estimated at JPY365 billion to reduce its interest-bearing debts totaling JPY540 billion. Initially, Kanebo had only sought IRCJ to bail out its cosmetics division, but the company later determined that for the firm to remain afloat, its operations as a whole needed a boost. In the latest bailout plan made public Wednesday, Kanebo's cosmetics unit will be spun off into a separate firm. The plan also intends to turn around the units that produce textiles, foods, and health and toiletry goods, where the company suffers most of its losses. KANEBO LTD.: Appoints New President ----------------------------------- Japanese cosmetics giant, Kanebo Ltd., has appointed Akiyoshi Nakajima to replace Takashi Hoashi as president, Japan Times says. Mr. Nakajima, who currently oversees Kanebo's sales of cosmetics at department stores, will assume his new post later this month. The company earlier announced that Mr. Hoashi and all the other board members would step down to take responsibility for the confusion that had been caused by the constant change in the company's revival scheme. "I would like to repeat my apology for causing great troubles for shareholders, customers and business partners by changing the revival scheme several times," Mr. Hoashi said at a news conference in Tokyo. MITSUBISHI MOTORS: U.S. Sales Continue to Drop ---------------------------------------------- Suffering its sixth straight month of double-digit decline, Mitsubishi Motors Corp.'s (TSE:7211) sales in the U.S. market fell 18.6 percent in February, according to the most recent U.S. data on new-car sales, Hoovers.com reports. Mitsubishi Motors' share of the U.S. market slightly improved in February to 1.5 percent, up from 1.4 percent in January but still down from 2.4 percent in December 2002. ========= K O R E A ========= SK CORPORATION: Stage Set for SK Corp.-Sovereign Asset Showdown --------------------------------------------------------------- In what is seen as a bold test of local tolerance toward foreign investors and minority shareholder rights, SK Corporation and Monaco-based Sovereign Asset Management Ltd. are set to do battle in the annual general shareholders' meeting Friday for control of Korea's largest oil refiner, reports The Korea Herald. In an open letter to SK stakeholders yesterday, James Fitter, Sovereign's chief executive said, "We see Friday's (annual general shareholders' meeting) as a referendum on both the company and the country's commitment to reform." For five seats reserved for outsiders, both companies have fielded a full slate of candidates, all of whom with strong ties to the academic, government and business communities. To improve the standard of governance at SK Corp., the de facto holding company of SK Group, both sides will also be presenting competing sets of amendments to company bylaws. Should Sovereign prevail, it would be the first time that a foreign shareholder has prevailed after asserting its opinion as as a minority shareholder. Foreign shareholders, who held roughly 44 percent of voting rights at the end of 2003, will likely support Sovereign, the paper said. SK Corp., on the other hand, is seen as favored by at least 36 percent of the voting shares, with SK Group affiliates, employees and domestic banks supporting the current management. The votes that could turn the tide in SK Corp.'s favor could come from the Korean institutional investors, who seem to lean toward SK Corp. This, in addition to the announcement Monday by the Korean Stock Exchange that 34 out of 36 domestic asset management companies would support SK on Friday, could give SK the edge. Curiously, the state-owned National Pension Corp., which owns a 3.6 percent stake in the oil refiner, still has not declared its intentions for Friday's meeting. Analysts believe that it will not risk a possible national backlash should it support a foreign interest. Sovereign is the second-largest shareholder of SK Corp. after SK Group affiliates, with a 14.99 percent stake in the oil refiner. In the past year, a KRW1.6 trillion accounting scandal and questionable fund transfers to rescue sick affiliates have engulfed SK Group and started the board fight. =============== M A L A Y S I A =============== GOPENG BERHAD: Issues Members' Voluntary Liquidation Notice ----------------------------------------------------------- Gopeng Berhad issued this general announcement: On 17 June 2003, we advised that arrangements had been made to place six (6) of the dormant and fully owned subsidiaries on members' voluntary liquidation. Further to our announcement on 28 February 2004, we advise that the remaining two (2) wholly owned subsidiaries namely Clay and Minerals Sdn Bhd and GB Industrial Minerals Sdn Bhd, had each convened an Extraordinary General Meeting (EGM) on 8 March 2004 and at the respective EGM, a Special Resolution to wind up the company voluntarily was resolved. This Kuala Lumpur Stock Exchange Announcement was dated 9 March 2004. METROPLEX: Restraining Order Extended ------------------------------------- In an amended announcement, the Company stated: Further to our announcement made on 20 February 2004 on the application for extension of the Restraining Order (RO) and for an order that meetings with creditors be convened within a period of time, the Board of Directors of Metroplex Berhad wishes to announce that the Kuala Lumpur High Court had on 26 February 2004 extended the RO from 21 February 2004 to 21 July 2004. The Court has further granted the Order to Convene Creditors' Meeting by 30 June 2004. More details on the extension of the RO and the Order to Convene Creditor's Meeting may be viewed on the following link: http://bankrupt.com/misc/Metroplex.doc PROMET: Details Securities' Removal ----------------------------------- The Company issued this general announcement: The securities of a Practice Note No. 4/2001 (PN4) company, Promet Berhad (PROMET), were removed from the Official List of the Malaysia Securities Exchange Berhad (the Exchange) with effect from 9:00 a.m. today. On 20 February 2004, the Exchange had announced that the Securities Commission (SC) had vide its letter dated 16 February 2004 decided not to approve PROMET's appeal against its decision to reject PROMET's proposed restructuring scheme. In the circumstances and in accordance with the Exchange's earlier decision, the securities of PROMET would be de-listed from the Official List of the Exchange. For full details on the decision of the Exchange, click on: http://bankrupt.com/misc/PROMET.doc PROTON: Sale of Mitsubishi Stake Confirmed ------------------------------------------ Perusahaan Otomobil Nasional Bhd. or Proton has officially confirmed that Japan's Mitsubishi Motors Corporation has sold its 7.93% stake in Proton, according to Dow Jones. But Proton did not identify the buyers or the value of the sale. According to local fund managers, the shares were placed to both foreign and local funds at between MYR9.10 ($1=MYR3.8) and MYR9.40 a share and the offer was fully taken up. Mitsubishi had initially offered the shares to the Malaysian government's investment arm, Khazanah Nasional Bhd. But Khazanah, which already holds a 32% stake in Proton, said it was not interested in purchasing the shares, as this would trigger a mandatory general offer. Malaysian laws require entities that acquire 33% or more of a company to make a general offer for the rest of the shares. Proton and Mitsubishi had been strategic partners since the inception of the latter as the country's national carmaker. Mitsubishi also has an 8% stake in Proton. The company has declared that, "Proton looks forward to a continuing relationship with Mitsubishi, collaborating on product development, engineering and manufacturing." PSC INDUSTRIES BERHAD: Revising Debt Restructuring Scheme --------------------------------------------------------- Avenue Securities Sdn Bhd ("Avenue") on behalf of PSC Industries Berhad wishes to announce that PSCI proposes to revise certain terms and conditions of the Original Proposals ("Revised Proposals") with the intention of expediting the implementation of its debt restructuring exercise. Avenue has been appointed as the adviser to the Company. For full details of the proposed revisions to the debt restructuring scheme, click on the following link: http://bankrupt.com/misc/PSC.doc RNC CORP: Proposes Restructuring Scheme --------------------------------------- On 9, 16 and 18 February 2004, OSK Securities Berhad (OSK), on behalf of the Special Administrators (SA) of RNC Corporation Berhad (RNC or the Company) had sought the approval of Malaysia Securities Exchange Berhad (MSEB) on the following in relation to the Proposed Scheme: (a) Shortening of the period between the Notice of Books Closure and the Books Closure Date of RNC's proposed capital reconstruction exercise, from twelve (12) clear market days to four (4) clear market days; (b) Shortening of the period between the Notice of Books Closure and the Books Closure Date of the proposed rights issue of Aliran Ihsan Resources Berhad (AIRB), from twelve (12) clear market days to four (4) clear market days; (c) Shortening of the period between the Books Closure Date of the proposed rights issue of AIRB, and the closing date for the receipt of applications for and acceptance of the new AIRB shares of RM1.00 each, from at least twenty-two (22) market days to at least ten (10) market days; and (d) Exemption for the trading of the entitlements to the AIRB rights issue shares on MSEB. On behalf of the SA of RNC, OSK is pleased to announce that MSEB has via its letter dated 9 March 2004, approved the applications set out in (a), (b) and (d) above. In respect of the application set out in (c), MSEB has approved the shortening of the closing date of applications for and acceptance of the rights to fourteen (14) market days (instead of ten (10) market days as applied for). This Kuala Lumpur Stock Exchange announcement is dated 9 March 2004. TENAGA NASIONAL: Sells Majority Stake in TNB Coal to Techventure ---------------------------------------------------------------- In an all-share deal that will result in its emergence as the largest shareholder of Techventure Bhd, Tenaga Nasional Bhd (TNB) will sell its 70% stake in TNB Coal International Ltd, The Star learned recently. By way of new shares, the proposed RM139.5 million deal calls for Techventure to pay TNB RM97.65 million for its 70% stake and RM41.85 million to Nik Sallahuddin Nik Hussein, who owns the other 30% of the coal mining company, the report said. The new Techventure shares to be issued would be subject to a ceiling price of RM1.50 and a floor price of RM1.20, and TNB's stake in Techventure, depending on the final agreed price, would vary between 49% and 46%. In a statement to the stock exchange on Tuesday, TNB said the proposed deal was contingent upon its obtainment of an exemption from making a general offer for the remaining Techventure shares. The deal is valid for six months. TNB Coal is a mining contractor for several mines in South Kalimantan, Indonesia, The Star says. It owns the exclusive mining rights to five concession areas there, and currently supplies coal to TNB Fuel Services Sdn Bhd, a subsidiary of the utility company. Techventure's purchase price of RM139.5 million would be for the entire equity of TNB Coal, and Techventure would assume the mining company's debt, including the US$68 million loan facility it signed in August last year to buy an 80% stake in Dynamic Acres Sdn Bhd, which owns the coal mines in Kalimantan. TNB, on the other hand, would reduce its debt through the deal, as it would not have to consolidate the accounts of Techventure since the latter will become an associate. Techventure, in a separate statement, the acquisition of TNB Coal will afford it an income-generating businesses and assets. "The Techventure Group has been recording consecutive losses after taxation for the past two years of approximately RM27.6 million (unaudited) and RM30.3 million for the financial years ended Dec. 31, 2003 and 2002 respectively," it said. "As a result, Techventure's unaudited consolidated NTA (net tangible assets) per share has deteriorated to 79 sen as at Dec. 31, 2003. The proposed acquisition will provide Techventure a new core business of coal supply which will contribute to the future profitability of Techventure," it added. UCP RESOURCES: Proposes Restructuring Scheme -------------------------------------------- The Securities Commission has approved the Proposed Corporate and Debt Restructuring Scheme of UCP Resources while subject to certain conditions. For more details on the Securities Commission's decision, click on the following link: http://bankrupt.com/misc/UCP.doc UNIPHOENIX: De-lists Securities ------------------------------- The Exchange, upon consultation with the Securities Commission has notified Uniphoenix Corporation Bhd that it has decided to wait for the outcome of UCB's appeal against the SC's decision to reject the company's application for approval of its regularization plans. The Exchange has also notified UCB that in the event the appeal to the SC is not allowed, the de-listing of the securities of UCB from the Exchange will be effected. Full details of the Exchange's decision on the appeal of Uniphoenix Corporation Bhd may be viewed by clicking on the following link: http://bankrupt.com/misc/Uniphoenix.doc ===================== P H I L I P P I N E S ===================== ATLAS CONSOLIDATED: Issues Notice on Certificate of Compliance -------------------------------------------------------------- Atlas Consolidated Mining and Development Corporation furnished the Philippine Stock Exchange the attached copy of its Compliance Officer's Certification on the corporation's compliance with the provisions of its Manual on Corporate Governance. For your information, Jose G. Cervantes Senior Vice President To view a copy of Certificate of Compliance, click http://bankrupt.com/misc/atlasconsolidated031104.pdf MANILA ELECTRIC: Seeks Approval of Second GRAM Application ---------------------------------------------------------- Manila Electric Company (Meralco) filed to the Energy Regulatory Commission on Tuesday, its second Generation Rate Adjustment Mechanism (GRAM) application for a new generation charge of 3.4583 pesos per kilowatthour, 0.16 peso higher than the previous GRAM filing. The petition covers cost of generation for the October to December 2003 period, AFX Asia reports. The GRAM is a cost-recovery mechanism the ERC put in place under guidelines released in Feb 2003. The result of National Power Corporations (NPC) implementation of Long-Run Avoidable Cost-based rates is an increase of 0.16 per kilowatt-hour in the average generation cost of October to December, according to Meralco. NPC handles half of Meralco's supply, increased its rates by around 0.50 peso per kilowatt-hour during the period covered in its recent GRAM filing with the ERC. Meralco said the delayed recovery of generation cost due to the GRAM resulted in under-recoveries of 785 million pesos for the period, which will be recovered over six months from May-Oct 2004 billings at 0.06 peso per kilowatt-hour monthly. "Over-recoveries in the past GRAM approval, likewise spread over a six-month period from February to July at close to 0.06 peso per kWh, were adjusted downwards by 0.05 peso to reflect the difference in the use of supply and billing month kilowatt-hour volumes in computing the monthly recoverable generation cost", Meralco added. The new generation charge the company will collect from May 1 after the ERC approval is received, is just a pass-through charge from NPC's rate increase, Elpi Cuna, Meralco's vice- president for corporate communication said. NATIONAL BANK: Raises P37M in Cebu Sale --------------------------------------- The Philippine National Bank (PNB) auctioned off P37 million worth of foreclosed properties during its first provincial auction in Cebu on February, posting a total of PhP215 million from five public auctions held since last year, Abs-Cbn reported on Wednesday, quoting PNB's auction manager CB Richard Ellis. A house and lot in Sunny Hills Subdivision, Talamban Cebu City was sold for PhP6.68 million, which was the highest winning bid while, a 602-square meter residential lot in Mandaue City received the lowest winning bid at P245,000. CB Richard Ellis director Jojo C. Salas said PNB sold 17 out of 29 Cebu properties up for auction last February 28. The success of the first provincial auction has prompted the bank to schedule another auction in Tarlac City later this month. PNB has 75 billion pesos worth of non-performing assets, consisting of 30 billion pesos worth of foreclosed assets and 45 billion pesos worth of bad loans, according to The Philippine Daily Inquirer. The success in provincial auctions prompted the bank to schedule another auction in Tarlac city this month. ================= S I N G A P O R E ================= Chartered Semiconductor: Shares Slide Again ------------------------------------------- Shares of Chartered Semiconductor Manufacturing hit an 11-week low on Wednesday, reports Serena Ng of The Business Times. Shares have fallen by almost 10% this week as questions emerge whether the firm is losing its market share to a Chinese rival. It has been reported that Chartered Semiconductor's rival Shanghai-based Semiconductor manufacturing Industrial Corporation (SMIC) has said that it has been getting strong orders from US firms- namely Broadcom and Marvel, both of which are also customers of the Singapore-listed chip foundry. SMIC is currently in the midst of US$1.8 billion Initial Public Offering (IPO) in New York and Hong Kong. But Kim Eng analyst Dharmo Soejanto says that SMIC's gain is not necessarily Chartered's loss. "Broadcom and Marvel are quite unique - they are fabless companies but have their own manufacturing technologies, so because of that they can go to every fab and use them, which they already do," Soejanto said. "So unless you can tell for sure that allocation-wise they are allocating more to SMIC (versus the others) than before, it's hard to conclude that Chartered has lost any business," he added. Broadcom, one of the world's largest suppliers of wireless networking chips, was Chartered's single-largest customer in 2003. Based on information gathered from its annual report, Chartered's top five customers for the year 2003 also included Agilent Technologies, Mediatek, Motorola and ST Microelectronics, and these five companies accounted for approximately 53 per cent of its 2003 revenue of some US$550 million. However, Mr. Soejanto also noted that based on information from SMIC's listing prospectus, the Chinese chipmaker, whilst currently being smaller than Chartered in terms of capacity and revenues, could potentially catch up with Chartered by the end of this year as it is rapidly adding capacity. L & M: Issues Notice of Extraordinary General Meeting ----------------------------------------------------- NOTICE IS HEREBY GIVEN that an Extraordinary General Meeting of the Company will be held on 25 March 2004 at 11.00 a.m. at 2 Tanjong Penjuru Crescent Singapore 608968 for the purpose of considering, and if thought fit, passing, with or without modifications, resolutions regarding debt restructuring, among others. For full details on the resolutions to be discussed during the meeting, click on the following link: http://bankrupt.com/misc/L&M.doc =============== T H A I L A N D =============== BANGKOK LAND: Bond Buyback Nets Profit of THB210M ------------------------------------------------- Bangkok Land Plc (Bland) yesterday said that it had bought back a further 7.15 million of its Swiss Franc Exchangeable Notes at 25 percent of their face value, Business Day reports. One of the country's leading property developers, Bland, which owns Impact Arena and the Muang Thong Thani satellite city, said the company issued 28.22 million new shares on March 4 at THB2 per share to bondholders in exchange for THB225.83 million (equivalent)worth of outstanding bonds. The company could post with this transaction an extraordinary profit of THB210 million (including saving of interest expense of THB41 million) for the three months ended March 31. With the prior and current transactions, Bland has accomplished the buyback of foreign currency bonds with a total face value of THB1.39 billion, and have resulted in the company gaining approximately THB440 million. All these transactions were part of an overall restructuring arrangement the company is offering to all bondholders. The offer will expire by the end of this month. UK-based Seamico Securities Plc and Guy Butler were commissioned to coordinate with the bondholders in the buyback of the remaining amount of bonds. KRUNG THAI: Offers Fixed-Rate Mortgages --------------------------------------- Krung Thai Bank and the Secondary Mortgage Corporation (SMC) on Wednesday, signed agreements to offer the first 30-year fixed- rate mortgages to ever hit the Thai market, Bangkok Post reported on Tuesday. A three, five and seven-year term will have fixed interest rates, after which, borrowers may choose to either renew their fixed loans based on prevailing interest rates or switch to a floating rate. A five-year loan is fixed at a rate of 4 percent, and then pegged to the prime-lending rate minus one quarter of a percentage point. The fixed-mortgage program was launched to expand financing options and help reduce interest rate risk for homebuyers. A 20 billion baht worth of mortgages is to be lent under the program over the next two years. The SMC, a state agency is set up to support home mortgage securization, also plans to offer credit guarantees to banks under the programme, where loan defaults within the first three years are 100 percent covered by the agency in return for a 0.25 percent fee. SAMART CORPORATION: Clarifies Article on Fund Raising Plan ---------------------------------------------------------- With reference to Reuters news regarding Company's fund raising plan involving debenture, warrants, etc., Samart Corporation, would like to clarify that the process of potential fund requirement as per the business plan for next three to five years is under consideration and has not been finalized. Hence any specific details regarding this issue cannot be disclosed as of today. Once, these issues are concluded, the company shall promptly notify the stock exchange in due course. The company or any of its representatives were never involved with any specific disclosure regarding this issue as quoted in the media recently. Please be informed accordingly. On behalf of Samart Corporation Plc. (Mr. Sirichai Rasameechan) Executive Vice Chairman SAMART CORPORATION: Plans To Raise THB1.6B Within 2 Months ----------------------------------------------------------- To finance its business expansion plans and to write off its accumulated debt within the year, Samart Corporation plans to raise THB1.6 billion within two months, the Bangkok Post reports. Samart Corporation president Thawatchai Vilailuck said the capital needed for its business expansion and refinancing part of its debts could be raised by May. However, the company still has to determine exactly how it would raise the funds. Warrants issue or bonds are among the options being considered by the company. The accumulated losses of Samart currently amount to THB627 million according to Mr. Thawatchai. He added that as soon as these are paid off, the company would commence paying shareholders their dividends. Samart Corporation posted a net profit of 1.79 billion baht last year compared with a net loss of 68 million baht in 2002. Revenues last year were 12.16 billion baht, up 45% from 2002, with the strong gains attributed to increased sales from its core mobile phone distribution networks, data services, entertainment and information services and antenna production operations. Samart I-Mobile, Samart Corp.'s flagship business in which it has a 70% stake, is not included in its plans to raise capital, according to Mr. Thawatchai. This, he says, is because the THB1.2 billion proceeds obtained from its recent listing on the stock exchange would suffice for the company's expansion plans this year. Samart currently owes Krung Thai Bank THB2.2 billion with principal payments of THB150 million and THB130 million in interest due this year. But Mr. Thawatchai said Samart still had cash from its capital raising and profit from its core Samart I-Mobile. A SCB Securities analyst said Samart's financial balance sheet showed that the company had positive equity. He said Samart and Samart I-Mobile (SIM) shares were good investments, particularly SIM which entered the business five years ago and had posted average of 80% growth a year. He added that Samart had been lagging behind in investments in fast-growing mobile technology. ``But today things have changed and now we aim to be the biggest content provider through a variety of alliances,'' he said. SIM shares are still undervalued when compared with its revenue growth, he said. Samart shares closed yesterday on the Stock Exchange of Thailand at 10.10 baht, down 30 satang in trade worth 309 million baht, while SIM closed at 18 baht, up 20 satang in trade worth THB76.6 million. ********* 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., Frederick, Maryland USA. Lyndsey Resnick, Ma. Cristina Pernites-Lao, Faith Marie Bacatan, 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. 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