Announcements

Date : 11 May 2000

1. ARTICLE IN THE SUN ENTITLED : "TIME may offer creditors shares in TIME dotCom". 2. ARTICLE IN THE NEW STRAITS TIMES ENTITLED: "Sapura seeks a more 'equitable solution'"

TIME ENGINEERING BERHAD

TypeReply to query
Reply to Query Letter by KLSE reference IDZO-000510-48777
Subject1. ARTICLE IN THE SUN ENTITLED : "TIME may offer creditors shares in TIME dotCom".
2. ARTICLE IN THE NEW STRAITS TIMES ENTITLED: "Sapura seeks a more 'equitable solution'"

Contents :

We refer to the Exchange's query letter dated 10 May 2000 in respect of the abovesaid articles appearing in The Sun, Sun Biz, page 1 and the New Straits Times, Business Section, cover page both on Wednesday 10 May 2000.


In response to the Exchange's query, we wish to inform you the following :-

1. The Company has not made any changes or modifications to the Proposed Composite Scheme of Arrangement under Section 176 of the Companies Act 1965 as stated in our announcement on 25 April 2000.

The Scheme as formulated by TIME with CDRC will be placed before creditors for their approval on 8 June 2000.

Under the Proposed Composite Scheme, the debts of the scheme creditors of telecommunications companies as well as non-telecommunications companies of the TIME Group will be settled by the issuance by TIME of RM1.00 nominal value 2-year zero coupon redeemable promissory notes for every RM1.00 of their debts while the secured scheme creditors of TIME will be restructured by reducing the principal outstanding, varying the existing terms and conditions of USD Bonds and by issuance of new TIME Warrants. The unsecured scheme creditors of TIME will be settled by the issuance of RM86.02 million nominal value ICULS.

2. The Company is not able to comment on the report made by Sapura Holdings Sdn Bhd.

Query Letter Contents :

We refer to the above news articles appearing in The Sun, Sun Biz, page 1, and
The New Straits Times, Business Section, cover page , both on Wednesday, 10 May
2000, a copy each is enclosed for your reference.
In particular, we would like to draw your attention to the underlined
sentences, which are reproduced as follows:-
The Sun
"Time Engineering Bhd will consider offering its creditors Time dotCom shares
instead of promissory notes convertible into cash under its current proposal,
sources close to Time said yesterday."
"Sources said Time is willing to consider giving creditors the shares as it
will further facilitate the restructuring process. However, the sources are of
the opinion that most of the creditors, especially the commercial banks, may
prefer cash as they would rather not take the risk of 'holding onto the shares'
."
The New Straits Times
"SAPURA Holdings Bhd is believed to be seeking the Corporate Debt Restructuring
Committee's co-operation to review the original debt restructuring plan of Time
Engineering Bhd and come up with what it believes to be a more 'equitable'
proposal for creditors."
" 'They want the committee to look less at who retains control of Time dotCom
and more on the equitable aspects of the deal, ' ... "
"It is believed that Sapura wants the CDRC to look again at the original Time
scheme, which it claims is vague in its debt repayment structure."



" 'All we are saying is that we want a clearer picture on how we (the
creditors) are being paid and how the valuation of RM8.3 billion (of Time) was
reached,' said Sapura president and chief executive Datuk Shahril Shamsudin
said."
"Meanwhile, industry sources said one of the Time restructuring plan's
weaknesses was that the notes to be issued by Time to creditors was not
underwritten."
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentences after due and diligent enquiry with all the directors,
substantial shareholders and all such other persons reasonably familiar with
the matters about which the disclosure is to be made in this respect. In the
event you deny the above sentences or any other part of the above reported
article, you are required to set forth facts sufficient to clarify any
misleading aspects of the same. In the event you confirm the above sentences or
any other part of the above reported article, you are required to set forth
facts sufficient to support the same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.

Yours faithfully
KUALA LUMPUR STOCK EXCHANGE


LISA LAM
Senior Manager, Listing Operations
LL/ASL/ZOOS
c.c. Securities Commission



Announcement Info

Company NameTIME ENGINEERING BERHAD  
Stock Name TIME    
Date Announced11 May 2000  
CategoryGeneral Announcement
Reference NoTE-000511-41437

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