BURSA ANNOUNCEMENTS

Date : 29 January 2001

KILANG PAPAN SERIBU DAYA BERHAD ("KPSD" OR THE "COMPANY") - PROPOSED DEBT AND EQUITY RESTRUCTURING SCHEME

KILANG PAPAN SERIBU DAYA BERHAD

TypeReply to query
Reply to Query Letter by KLSE reference IDKA-010116-54046
SubjectKILANG PAPAN SERIBU DAYA BERHAD ("KPSD" OR THE "COMPANY")
- PROPOSED DEBT AND EQUITY RESTRUCTURING SCHEME

Contents :

We refer to the letter dated 18 January 2001 which was received on 22 January 2001 requesting for further information in respect of the aforesaid matter.


Based on information provided by the Company, we are pleased to inform the Kuala Lumpur Stock Exchange of the following:-

1) The outstanding debts due to the Preferential Creditors, Hire Purchase Creditors and Other Non-Essential Creditors will be settled through internally-generated funds upon completion of the Proposed Debt and Equity Restructuring Scheme;

2) The purchase consideration for the transfer of KPSD's 80% equity interest in Padas Hevea Wood Products Sdn Bhd and its entire share capital in Resofocus Corporation Sdn Bhd to Newco will become an inter-company balance upon completion of the Proposed Debt and Equity Restructuring Scheme. This amount shall be unsecured, has no fixed terms of repayment and shall bear interest at the rate of 3.0% per annum.

3) Please refer table I, II and III for the rate of redemption of the Redeemable Convertible Secured Loan Stocks ("RCSLS") A, RCSLS B and Redeemable Convertible Unsecured Loan Stocks respectively; and

4) The amount due to Priority Creditors estimated at RM6.6 million will be settled through cash proceeds to be raised from the Proposed Restricted Issue. Under Table X of the announcement dated 15 January 2001, this amount has been included under the caption "Working Capital".

      The entire amount due to Substantial Shareholder Creditor will be applied towards part settlement of the subscription consideration of the Proposed Restricted Issue by the Susbtantial Shareholder Creditor.
      This reply is dated 29 January 2001.
TABLE I

Redeemability
:
At the option of NEWCO, NEWCO may on the anniversary of the Issue Date or at anytime after the Issue Date up to and including the Maturity Date redeem all or only part of the outstanding RCSLS A subject to the condition that an equivalent proportion of the outstanding RCSLS B are also redeemed at the same time and all accrued interest is paid.
Unless previously converted or redeemed early in the manner allowed, the RCSLS A shall be redeemed for cash on a staggered basis on each of the redemption dates on the anniversary of the Issue Date beginning from and including the (3rd) third anniversary of the Issue Date up to and including the Maturity Date in the following manner:
Anniversary of Issue Date
Percentage to be Redeemed
Third
10%
Fourth
15%
Fifth
25%
Sixth
25%
Seventh
25%


TABLE II

Redeemability
:
At the option of NEWCO, NEWCO may on the anniversary of the Issue Date or at anytime after the Issue Date up to and including the Maturity Date redeem all or only part of the outstanding RCSLS B subject to the condition that an equivalent proportion of the outstanding RCSLS “A” are also redeemed at the same time and all accrued interest on RCSLS “A” is paid.
Unless previously converted or redeemed early in the manner allowed, the RCSLS B shall be redeemed for cash on a staggered basis on each of the redemption dates on the anniversary of the Issue Date beginning from and including the first (1st) anniversary of the Issue Date up to and including the Maturity Date in the following manner:
Anniversary of Issue Date
Percentage to be Redeemed
First
2.60%
Second
2.60%
Third
11.20%
Fourth
15.25%
Fifth
23.45%
Sixth
22.80%
Seventh
22.10%


TABLE III

Redeemability
:
At the option of NEWCO and subject to the consent of the RCULS holders, NEWCO may redeem the RCULS earlier during the tenure of the RCULS at anytime after the Issue Date up to and including the Maturity Date subject to the condition that the entire RCSLS “A” and RCSLS “B” shall have first been fully redeemed or converted.
At the option of the RCULS holders, the RCULS may be redeemed for cash on a staggered basis on each of the redemption dates on the anniversary of the Issue Date beginning from and including the (8th) eighth anniversary of the Issue Date up to and including the Maturity Date in the following manner:
Anniversary of Issue Date
Percentage to be Redeemed
Eighth
50%
Ninth
50%

Query Letter Contents :


We refer to your announcement dated 15 January 2001 on behalf of KPSD, in
respect of the aforesaid matter.

In this connection, kindly furnish the Exchange with the following additional
information for public release:-

1) The source of funds for the settlement of the following:-
(i) The outstanding debts due to the Preferential Creditors.
(ii) The outstanding debts due to the Hire Purchase Creditors.
(iii) The 70% of the outstanding debts due to the Other Non-Essential
Creditors.
2) How the consideration of RM6,400,000 for the transfer by KPSD to Newco of
its 80% equity interest in Padas Hevea Wood Products Sdn Bhd will be satisfied.
3) The consideration for the transfer of Resofocus Corporation Sdn Bhd to
Newco and how this will be satisfied.
(4) The rate of redemption of the Redeemable Convertible Secured Loan Stocks
("RCSLS") A, RCSLS B and Redeemable Convertible Unsecured Loan Stocks.
(5) Details of settlement to Priority Creditors and Substantial Shareholder
Creditor in table X.






Kindly furnish the Exchange with your reply within two (2) market days from the
date hereof.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE


Tan Yew Eng
Senior Manager, Listing Operations
TYE/KRISH
Copy to: Securities Commission (via fax)


Announcement Info

Company NameKILANG PAPAN SERIBU DAYA BERHAD  
Stock Name KPSD    
Date Announced29 Jan 2001  
CategoryGeneral Announcement
Reference NoCU-010129-33935