Asia Pacific Wire & Cable Appoints New Chairman and CEO.Business Editors NEW YORK--(BUSINESS WIRE)--March 8, 2004 Asia Pacific Wire & Cable Corporation Limited ("APWC" or "Company" OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : AWRCF) -- APWC and PEWC PEWC Ponders End Wargaming Club (gaming) Continue Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Against Set Top and Related Parties -- APWC Pledges Shares in APWC General Holdings Limited to PEWC Asia Pacific Wire & Cable Corporation Limited ("APWC" or "Company" OTC Bulletin Board: AWRCF) announced today that it has appointed Charles Han, a director and the Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of APWC, as Chairman and Jeffrey Too as Chief Executive Officer ("CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. "). Mr. Han replaces Tom Tung and Mr. Too replaces David Sun who has stepped down as CEO and recommended Mr. Too for this position. Recent Litigation Developments As previously disclosed, APWC and its parent company, Pacific Electric Wire & Cable Co., Ltd. ("PEWC"), have been prosecuting a civil action in the United States Federal Court for the Southern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of against Set Top International Inc. ("Set Top", a British Virgin Islands British Virgin Islands A British colony in the eastern Caribbean east of Puerto Rico and the U.S. Virgin Islands. Road Town, on Tortola Island, is the capital. Population: 21,700. Noun 1. company, Mr. Tom Tung, the former chairman of APWC and PEWC, and certain associated parties, in connection with an attempted transfer of a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in APWC to Set Top through a series of transactions which the Company has alleged, in the civil action, have involved self-dealing, breach of contract and fraud. On February 20, 2004, APWC's and PEWC's request for a preliminary injunction to halt the transfer of shares to Set Top was denied by the Court of Appeals for the Second Circuit and the action is continuing based on APWC's and PEWC's claims for monetary damages and return of the shares. APWC and PEWC intend to continue to vigorously prosecute this action; however, Set Top has issued a notice that it intends to conduct a public sale on March 10, 2004 of 50.44% of the issued and outstanding common shares of APWC, which, if completed, would be expected to result in a change of control of the Company. Regardless of the outcome of that announced sale, APWC and PEWC intend to continue to seek to set aside the transactions pursuant to which Set Top alleges it acquired the rights to the APWC shares. Recent Financial Developments at APWC and PEWC In connection with the restructuring of certain demand obligations totaling approximately $23.8 million owed by APWC, or one or more of its subsidiaries, to PEWC or one of its subsidiaries, the PEWC lenders have granted to the APWC borrowers a repayment extension of three years, which has been secured by a pledge of the stock of certain key APWC subsidiaries. In particular, APWC has pledged its share holdings in APWC General Holdings Limited ("AGH AGH Akademia Gorniczo-Hutnicza AGH Allegheny General Hospital (Pittsburgh, PA, USA) AGH Alpena General Hospital (Michigan) AGH Helsingborg, Sweden - Angelholm/Helsingborg (Airport Code) ") to PEWC Singapore Company (Private) Limited ("PSC (Public Service Commission) Same as PUC. ") as security for the existing loan of US$1 million and for the guarantee of other US$7.8 million existing loan facilities extended by PSC to APWC other group companies. AGH is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of APWC. PSC is a 100% owned subsidiary of PEWC. With the pledge as described herein, APWC and its other group companies are able to secure a three-year extension of the debt obligations due to PSC. The loans, as restructured, are accruing interest at market rates. Among other provisions, the loans provide that a change of control of APWC will constitute a default and thereby entitle PEWC to demand payment of the indebtedness and to otherwise exercise it rights as a secured lender in the event the loans are not repaid. About Asia Pacific Wire & Cable Asia Pacific Wire & Cable Corporation is a leading manufacturer of wire and cable products for the telecommunications and power industries in selected markets in the Asia Pacific Region. Except for statements of historical fact, this news release contains certain forward-looking statements about the Company. Such statements are subject to significant risks and uncertainties, including changes in economic and market conditions, successful implementation of growth plans, and other risks noted in the Company's SEC filings which may cause actual results to differ materially. |
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