ARTICLE ENTITLED : "Malaysia's Lion Plans 3.4 Bln Ringgit Reorganization of Units"
| POSIM BHD |
| Type | Reply to query |
| Reply to Query Letter by KLSE reference ID | FM-000103-67903 |
| Subject | ARTICLE ENTITLED : "Malaysia's Lion Plans 3.4 Bln Ringgit Reorganization of Units" |
Contents :
We refer to your letter dated 4 January 2000 and wish to advise the following :
“Amsteel Corporation Berhad ("Amsteel") is the holding company of the Company.
Amsteel's financial adviser, RHB Sakura Merchant Bankers Berhad with the assistance of PricewaterhouseCoopers Consulting Sdn Bhd, have developed a preliminary scheme for the restructuring of the Amsteel Group’s financial obligations. Amsteel and its aforesaid advisers are currently holding discussions with the relevant scheme creditors to obtain their feedback on the preliminary scheme. The preliminary scheme does not constitute a formal proposal for the debt restructuring of the Amsteel Group and is intended solely to elicit the creditors’ feedback on the preliminary scheme.
It is envisaged that a more definitive proposal would be made to the creditors of the Amsteel Group, which would incorporate adjustments to the preliminary scheme following negotiations and receipt of feedback from the relevant scheme creditors.
An announcement would be made in due course after finalisation of the definitive scheme, setting out the actual terms of the proposal for the restructuring of the Amsteel Group’s financial obligations as well as the terms of any corporate exercises.”
Query Letter Contents :
We refer to the above article appearing on Bloomberg, 31 December 1999, a copy
of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined
sentences, which are reproduced as follows:-
"The Lion group, one of Malaysia's biggest conglomerates, plans to
reshuffle its units in transactions worth
3.4 billion ringgit ($894 million) as it puts its house in order
after suffering its worst loss last year."
"The reorganization will help the group use revenue generated by
its key businesses to be used "for the
purpose of the debt restructuring exercise," Lion said in a
letter to creditors..."
"The plan also includes Amsteel selling its controlling stake in
Posim Bhd., a timber and pulp company, to
Lion Land for 696 million ringgit, or 4.02 ringgit a share."
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported sentences after due enquiry. In the
event you deny the above reported sentences, you are required to set forth
facts sufficient to clarify any misleading aspects of the same. In the event
you confirm the above reported sentences, you are required to set forth facts
sufficient to support the same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE
Lisa Lam
Senior Manager, Listing
SA/TFM
c.c. Securities Commission
Announcement Info
| Company Name | POSIM BHD |
| Stock Name | POSIM |
| Date Announced | 5 Jan 2000 |
| Category | General Announcement |
| Reference No | PP-000106-1451 |