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IHT: LRT Bailout Represent 10% of M'sia's Corporate Debt Burden By Bloomberg 4/9/2001 9:36 pm Tue |
[Kenapa asyik gagal sahaja projek penswastaan negara yang berjuta-juta?
Kenapa KWSP melabur dalam projek yang diceburi oleh kroni yang langsung
tidak pandai berniaga? Di negara maju projek sebegini sentiasa memulangkan keuntungan yang tidak
terjejas pun oleh kemelesetan ekonomi. Kalaulah projek ini dipantau dari mula
ini semua takkan terjadi. Itu tidak dilakukan kerana tujuan sebenar LRT
adalah untuk membuncitkan diri dan kroni. Itulah kerja sebenar Unit Perancang
Ekonomi yang berada di bawah ketiak Perdana Menteri.
- Editor] Kuala Lumpur Revives Rail Takeover Plan
Bloomberg News Bailout Would Represent 10% Reduction of Malaysia's Corporate Debt Burden
KUALA LUMPUR Malaysia has revised a plan to take over two rail
companies and convert $1.4 billion of their overdue loans into bonds in
what would be the country's biggest corporate rescue.
The government plans to acquire 80 percent of Kuala Lumpur's light rail
system, leaving Renong Bhd., Taylor Woodrow PLC, state-run pension
funds and other shareholders with the rest, according to a document
obtained by Bloomberg News. The revised plan was outlined in the 14-page document by the
state-owned debt mediator and dated Aug. 29.
The bailout would be cheaper for the government than initially planned
because by guaranteeing the bonds, it will pay creditors a lower
coupon rate. The takeover would cut by about 10 percent the country's 60 billion
ringgit ($15.79 billion) worth of bad loans, a legacy of the 1997
financial crisis in Asia, and would help banks stem a decline in profit
as the economy slows again, analysts said.
"It will help restore the stability of the banking system," said Sebastian
Chang, research head of Vickers Ballas Research (M) Sdn. "With this
kind of infrastructure it's difficult to make money. It should be in the
hands of the government." The rail plan is part of the government's effort to reduce debt at Renong
Bhd., Malaysia's biggest industrial group.
Last month, the government offered to buy a Renong unit, United
Engineers Malaysia Bhd., to reschedule debts, hasten asset sales and
wrest control of the parent from its chairman, Halim Saad.
Renong is Malaysia's most indebted company with more than 20 billion
ringgit worth of liabilities. The market value of the company has
declined 50 percent in the past 12 months. On Wednesday, it reported
a loss of 331.9 million ringgit in the year to June 30, hurt by falling
revenue, higher interest charges and development costs in its transport
business. Renong shares fell 2.8 percent Thursday. The stock market
was closed Friday for Malaysia's independence day.
Three months ago, Prime Minister Mahathir bin Mohamad deferred a
5.5 billion ringgit bond sale, first announced in December, to fund the
complete takeover of the rail systems because it was too expensive.
The rail system is run by Projek Usahasama Transit Automatik Sdn.,
owned by Renong, and Sistem Transit Aliran Ringan Sdn., which is
owned by Taylor Woodrow; Employees Provident Fund, Malaysia's
biggest pension fund, and other state-run funds.
http://business-times.asia1.com.sg/news/story/0,2276,19857,00.html?
September 1, 2001 KUALA LUMPUR Malaysia revives bailout plan for railway firms
Govt to acquire 80% of light railsystem and convert loans into debt
MALAYSIA revived a plan to take over two rail companies and convert
US$1.4 billion of their overdue loans into bonds in the nation's biggest
corporate rescue, according to a document obtained by Bloomberg
News. The government plans to acquire 80 per cent of Kuala Lumpur's light
rail system, leaving Renong Bhd, Taylor Woodrow Plc, state-run
pension funds and other shareholders with the rest. The plan is outlined
in a 14-page document by the state-owned debt mediator and dated
Aug 29. The bailout will be cheaper for the government than initially
planned because by guaranteeing the bonds it will pay creditors a
lower coupon rate. The takeover would cut by about 10 per cent the nation's RM60 billion
(S$27.4 billion) of bad loans, a legacy of the 1997 financial crisis in
Asia, and help banks stem a decline in profit as the economy slows again,
analysts said. 'It will help restore the stability of the banking system,'
said Sebastian Chang, research head of Vickers Ballas Research (M) Sdn.
'With this kind of infrastructure it's difficult to make money. It should
be in the hands of the government.' The rail plan is part of the government's effort to reduce debt at Renong
Bhd, Malaysia's biggest industrial group. Last month, the government
offered to buy a Renong unit, United Engineers Malaysia Bhd, to wrest
control of the parent from its chairman Halim Saad, reschedule debts
and hasten asset sales. Renong is Malaysia's most indebted group with more than RM20 billion
of debt. The market value of the company has halved in the past 12
months. The Corporate Debt Restructuring Committee, or CDRC, presented the
revised plan for the rail companies on Wednesday to lenders including
Bayerische Landesbank, RHB Bank Bhd, PhileoAllied Bank Bhd and
the Employees Provident Fund. Azman Yahya, chairman of the
government's debt mediator, wasn't available for comment. Other
officials declined to comment. Three months ago Prime Minister Mahathir Mohamad deferred a RM5.5
billion bond sale, first announced in December, to fund the complete
takeover of the rail systems because it was too expensive. Some
investors said the move favoured businessmen such as Mr Halim. In
1999, one of the two groups managing the longest driverless rapid
transit rail in the world defaulted on a debt payment after passenger
traffic fell. Under the new plan, the government's Ministry of Finance Inc will own
80 per cent of Syarikat Prasarana Negara Bhd, which will buy the rail
companies, the documents said. Syarikat Prasarana will then buy the
loans from creditors by issuing bonds to them in four tranches with a
maturity of between five years and 15 years, at coupon rates of
between 4 per cent and 5.4 per cent. The rates are lower than the previous 5.8 per cent and 7.2 per cent
because the government will guarantee the bonds. The creditors are
expected to decide on the plan in the second week of September. The
bonds will be issued at the end of the year. Creditors won't be asked to
take any losses on the principal amount, though they will be asked to
waive any penalty interests. Renong, which owns Projek Usahasama Transit Automatik Sdn, or Putra, defaulted in 1999 on interest payments of RM44.6 million on a RM2 billion loan, after revenue didn't cover expenses. Another line, Sistem Transit Aliran Ringan Sdn Bhd, or Star, is owned by Malaysia's biggest pension fund, Employees Provident Fund, Taylor Woodrow Plc and other state-run funds. - Bloomberg |