PSE Circular for Brokers No. 1749-98

July 28, 1998 PSE CIRCULAR FOR BROKERS NO. 1749-98 ASIAN TERMINALS, INCORPORATED Securities and Exchange Commission Form 11-C Current Report Under Section 11 of the Revised Securities Act (RSA) and RSA Rule 11(a)-1(b)(3) thereunder 1. Date of Report July 27, 1998 2. SEC Identification Number 133663 3. BIR Tax Identification No. 033-000-132-413-V 4. Exact name of registrant as specified in its charter ASIAN TERMINALS, INC. 5. Province, Country or other jurisdiction of incorporation Manila, Philippines 6. Industry Classification Code (SEC Use Only) 7. Address of principal office/postal code Muelle de San Francisco, South Harbor, Port Area, Manila 8. Registrant's telephone number/area code 527-80-51 to 81 9. Former name or former address, if changed since last report N/A 10. Securities registered pursuant to Sections 4 and 8 of the RSA Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding Capital stock common 1,000,000,000 Long Term Commercial Papers P1,500,000,000 11. Indicate the item numbers reported herein: Item 5 Legal Proceedings ATI requested for an additional increase of twenty percent (20%) in the tariff rate for arrastre as well as vessel charges for containerized and non-containerized cargoes which was granted by the PPA by virtue of the Excom Resolution No. 98-564 and its Board Resolution No. 1713. The said increase was implemented by ATI on July 15, 1998 in accordance with PPA Memorandum Circular No. 28-98. On the night of July 16, 1998, ATI received a Memorandum from PPA's General Manager informing ATI that a petition was filed by the Association of International Shipping Lines (AISL) against the PPA and that a temporary restraining order (TRO) valid for 72 hours was issued by the court enjoining the PPA and its agents to maintain the status quo and to refrain from implementing the additional tariff increase. In response thereto. ATI sent the PPA a letter on July 17, 1998 informing them that the Company has already implemented the tariff increase effective July 15, 1998. On July 20, 1998. ATI, through its counsel, filed an Urgent Motion for Leave to Intervene in the Petition alleging, among others, that ATI would be greatly affected by whatever outcome would result therein. In its Order dated July 23, 1998, the Court sustained the position of ATI by denying AISL's prayer for a twenty (20)-day Temporary Restraining Order (TRO). It was thus ruled that AISL failed to show convincing proof that grave and irreparable injury will result from the implementation of the tariff increase and that the said injury would be imposed on AISL before the matter can be heard in a full-blown inquiry and litigation. To-date, ATI continues to implement the higher PPA-approved tariff rates in arrastre as well as vessel charges for containerized and non-containerized cargoes. Pursuant to the requirements of the Revised Securities Act, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ASIAN TERMINALS, INC. Registrant (SGD.) ATTY RODOLFO G. CORVITE, JR. Corporate Secretary