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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                   A S I A   P A C I F I C

         Thursday, September 05, 2002, Vol. 5, No. 176

                         Headlines

A U S T R A L I A

CALTEX AUSTRALIA: Books H102 Profit; Prioritizes Debt Reduction
KINGSTREAM STEEL: Administrator Revises Restructuring Proposal
PHOENIX TECHNOLOGY: Ferrier Hodgson Appointed as Liquidator
TUART RESOURCES: AGM to be Held September 27
UECOMM LIMITED: Sells People Telecom Stake

WESTERN METALS: September 27 GM Scheduled


C H I N A   &   H O N G  K O N G

CHEUK TANG: Hearing of Winding Up Petition Set
ENGLONG GROUP: Winding Up Sought by China Merchants
NORTHEAST ELEC'L: Awaits Trading Resumption Request Decision
SPLENDID DUESSELDORF: Petition to Wind Up Pending
TRAIN GOOD: Winding Up Petition Slated for Hearing

WORLD BUSINESS: Winding Up Petition Hearing Set Late September


I N D O N E S I A

BANK NIAGA: Bidders to Start Due Diligence


J A P A N

FUJITA CORP: Slashing 800 More Jobs Via Early Retirement
HANKYU CORPORATION: JCR Downgrades Rating to A
KINKI NIPPON: Downgrades Rating to BBB+
MITSUBISHI SECURITIES: R&I Assigns L-T Rating to A
NTT DOCOMO: Launches "Mova(R) F67liS" Handset

TOBU RAILWAY: JCR Downgrades Rating to BBB-
TOKYO ELECTRIC: Investigates Maintenance Work at Power Plants


K O R E A

DAEWOO SECURITIES: Woori Moves On With Securities Acquisition
HYUNDAI ENGINEERING: Denies Report on Job Cuts
KOREA ELECTRIC: Moody's Assigns Baa2 Rating; Outlook Positive
KOREA ELECTRIC: Powercomm's Third Round of Auction
KUMHO INDUSTRIAL: Hopes To Close Sale of Tire Ops by Year-End

SEOUL BANK: Government Hires Goldman to Review Hana Bank Offer


M A L A Y S I A

ABRAR CORPORATION: Releases Monthly Business Update
AMSTEEL CORPORATION: Proposed GWRS Still in Progress
DAMANSARA REALTY: Provides Credit Facilities Status Update
ESPRIT GROUP: Seeks Regularization Plan Time Extension
HAI MING: Proposed Fix RCSLS, ICULS Price Conversion

HIAP AIK: Finalizing Proposed Restructuring Scheme Terms
HOTLINE FURNITURE: Receivers, Managers Appointed to Units
L&M CORP.: Invites White Knight to Participate in Restructuring
LONG HUAT: Aims to Ink Purchase Agreement With White Knight
LONG HUAT: HSBC Winding Up Petition Adjourned to November's End

MBF HOLDINGS: Finalizes Proposed SOA Documentation Execution
RAHMAN HYDRAULIC: Summons Hearing Set for September 20
RNC CORP.: KLSE OKs Articles of Association Amendment Extension
SOUTHERN PLASTIC: Sends Revised Proposal to Institutions
SPORTMA CORPORATION: Danaharta Further Extends Moratorium

TENCO BERHAD: 18th AGM Scheduled for September 25
TIMBERMASTER INDUS: Workout Proposal Formulation Continues


P H I L I P P I N E S

ABS-CBN: Clinches P3.5B Medium Term Facility
EAST ASIA: Corporate Legal Counsel Resigns
NATIONAL POWER: Privatization Thought Helpful to Deficit
NATIONAL POWER: ADB Guarantees $750M Bond
PHILIPPINE LONG: PSE Meets JG for Penalties Discussion

PHILIPPINE LONG: Signs US$145M Loan Facility


S I N G A P O R E

BOUSTEAD SINGAPORE: Disposal of Australian Subsidiary
CHARTERED SEMICONDUCTOR: Reiterates Earnings Guidance For Q302
FHTK HOLDINGS: Posts Notice of Shareholder's Interest
NIPPECRAFT LIMITED: Progress of Negotiation With Bankers
NOBEL DESIGN: Posts Interim Loss of $1.1M


T H A I L A N D

ADVANCE PAINT: Debt Repayment Under Reorg Plan Completed
HEMRAJ LAND: Proposed Early Bond Redemption Terminated
IMPERIAL PLAZA: Files Business Reorganization Petition
THAI-GERMAN: Signs Bt1.B Loan Agreement for Improvement Program

* DebtTraders Real-Time Bond Pricing

     -  -  -  -  -  -  -  -

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A U S T R A L I A
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CALTEX AUSTRALIA: Books H102 Profit; Prioritizes Debt Reduction
---------------------------------------------------------------
Caltex Australia announced Friday a major turnaround to a net
profit after tax of $130.4 million, or 48.3 cents a share, for
the first half of 2002 from a net profit after tax of $1.2
million, or 0.5 cents a share, for the first half of 2001.

Caltex Chairman Dick Warburton said that this turnaround was due
not only to higher refiner margins and rising crude oil prices,
which had resulted in gains on inventory purchased, but also to
improved refinery reliability and robust sales.

"The Board remains very conscious of its stated objective of
paying consistent dividends," Mr Warburton said. "However, the
company's current financial priority is debt reduction, and
taking this into account the Board has determined that no
interim dividend will be paid. In focusing on reducing debt
levels and improving gearing, the company is working to position
itself to better withstand the impact of external factors beyond
its control and return to profit and cash flow levels which will
support payment of a consistent dividend and investment in
cleaner fuels."

Caltex Managing Director Jeet Bindra said net debt has been
reduced to $1,036 million (52% gearing) at 30 June 2002 compared
with $1,264 million (61% gearing) at 31 December 2001. "The
company is on track to meet its debt reduction target for the
end of 2003," Mr Bindra said.

"The profit included an inventory gain of $105.9 million for the
half year to 30 June 2002. Excluding this key external factor,
the company's earnings before interest and tax (on a replacement
cost of sales basis, excluding significant items) were $129.3
million for the half year up from $36.2 million in the first
half of 2001, reflecting continued strong improvement in the
underlying performance of the business."

The $130.4 million half year profit to 30 June 2002 includes a -
$7.5 million significant expense item. This represents the
estimate of a deferred purchase consideration payable to Hanson
Australia Pty Limited (formerly Pioneer International Limited)
for the purchase of its 50% interest in Australian Petroleum Pty
Limited in 1997. This payment is subject to performance targets
for the full year and reflects the strong results for the first
half. The $1.2 million half year profit to 30 June 2001 included
a significant item of +$15.5 million.

REFINING

Mr Bindra said there were significant improvements in the
reliability and safety performance of both the Kurnell and
Lytton refineries in the first half of 2002 compared with a year
ago.

This enabled the business to benefit from improved regional
refiner margins (the difference between the price of crude oil
and the price of refined petroleum products), which averaged
US$2.70 a barrel for the first half of 2002, up from US$1.45 a
barrel for the same period last year. Regional margins were
supported by relatively strong gasoline margins, which after a
weak start with negative levels in January were firm from
February right though to the end of June.

The price of regional benchmark Tapis crude oil averaged
US$22.80 a barrel for the first half of 2002. Prices rose
steadily from US$19.50 a barrel in January, peaking at US$25.32
in May and ending the half year at US$24.01, creating gains on
inventory from the gap between what the company paid at the time
of crude purchase and the price of refined products sold in the
market place.

"Operational excellence and plant reliability continue to be key
focus areas for the company," Mr Bindra said. "We have achieved
significant improvements in these areas over the past several
months."

A major independent review of operating and management practices
at both refineries undertaken in early 2001 by a team of
international and local experts led to 148 recommendations.
Currently actions on over 60% of these recommendations have been
completed or are in progress. The remaining items are currently
being engineered and/or planned with the bulk of the items
scheduled for completion prior to the end of 2003.

At the Lytton refinery in Brisbane, there has been an
improvement in power supply reliability, with a commitment from
local suppliers Energex and Powerlink to upgrade the electricity
network that services the refinery.

The company has taken steps towards cleaner fuels production in
line with federal government regulation. In April, the catalyst
was changed in the Kurnell refinery's diesel hydrotreating unit
to allow the production of diesel with less than 500 parts per
million (ppm) sulfur, which is mandated from 1 January 2003. The
Lytton refinery has been meeting the 500 ppm sulfur
specification for some time. Further progress was made on
technical and economic feasibility studies at both the Kurnell
and Lytton refineries into options to meet the standards for
benzene in petrol and sulfur in diesel required by 2006.

MARKETING

Mr Bindra said the first six months of 2002 saw a continued
strong performance across all marketing channels. Caltex petrol
sales volumes were 3.7% higher than the same period last year,
in line with Australian market growth, while diesel sales grew
by 9%, well ahead of the national average. Caltex's share of the
total transport fuels market share grew by 1% to 28.2%.

Commercial and industrial sales volumes were 11% higher, boosted
by strong demand from the mining and industrial sectors. Jet
fuel sales for the first half were 5.7% lower than a year ago
but are recovering in the aftermath of the loss of Ansett and
the global aviation slump following September 11 due to
increased sales to both domestic and international carriers.

Performance has also been improved in the highly competitive
lubricants sector, with profit up by 6% on the comparative
period last year. Sales growth has been assisted by promotion of
the key Caltex brands Havoline and Delo through successful
motorsport sponsorship and targeted advertising.

Earnings from convenience store and related activities continued
to grow. The Star Mart convenience stores experienced average
sales increases of 6.3%, while the smaller Star Shops' average
sales grew 14.9% in the first half of 2002 compared with the
same period the previous year. Caltex's national All Stars
quality assurance program has contributed to enhanced site
performance in areas such as customer service, promotional
compliance, merchandising, brand and site presentation. The
Caltex retail offer has also grown with the upgrading and
expansion of the car wash network and new services such as phone
card rechargers.

Market research has enabled effective targeting of key audience
segments in advertising and promotions at national and site
level. Brand awareness continues to grow, with sound results
from a seven-week TV advertising campaign, the Easter road
safety Driver Reviver program and Star Day fundraising
activities for the Starlight Children's Foundation.

Caltex's road travel web site Travelmate.com.au and associated
accommodation site Needitnow.com.au has enjoyed double digit
growth in turnover.

OUTLOOK

Mr Bindra said the outlook for the second half will be largely
governed by refiner margins and crude oil prices. A fall in
petrol demand has led to a significant weakening of regional
margins in July and August 2002.

In marketing, Caltex is working to further strengthen its
position in key markets for fuels and convenience store sales
and will continue to focus on profitable business rather than
volumes.

Also, Caltex's current financial priority remains debt
reduction, as described earlier. "Good progress was made in the
first six months of 2002 as improved earnings and prudent cash
conservation enabled the debt to be reduced by $229 million down
to $1,036 million," he said. (The lower debt also benefited from
the timing of the weekly excise payments, which fell due at the
beginning of July rather than the end of June).

"The company was also successful in raising US$200 million in
the international capital market in July. The placement was well
received by US investors resulting in the transaction being
significantly oversubscribed. These funds, of varying maturities
between five and ten years, will be used to retire facilities
expiring in November 2002."

The company's current goal is to reduce debt to $950 million by
31 December 2003. "This will place the company in a much
stronger position to withstand volatile external factors such as
refiner margins, crude oil prices and freight rates and to meet
the estimated $250 million funding requirements for the
refineries' conversion for cleaner fuels production," he said.

"The remainder of the year will see a strong focus on plant
reliability and the debt reduction program. The company has
taken a number of measures to improve cash flow including
targeted cuts in capital and operating budgets, divestment of
non-core assets and strategies for enhancing revenue."


KINGSTREAM STEEL: Administrator Revises Restructuring Proposal
--------------------------------------------------------------
Mr B Hughes, Joint and Several Deed Administrator of Kingstream
Steel Limited, previously advised that the Company entered into
an agreement for the sale of it's Mining Leases, an Exploration
Lease, General Purpose Leases and Miscellaneous Licenses
covering the Tallering Peak Iron Ore Body in April 2002.

The Sale Agreement for the Tallering Peak Tenements, entered
into between the Company and Mount Gibson Mining Ltd (MGM), a
subsidiary of Mount Gibson Iron Ltd (MGI) had to be amended to
incorporate a right to mine in order to resolve some legal
issues. This amendment provided for the ownership of Tallering
Peak Tenements to remain with the Company and all
responsibilities and entitlements to mine Tallering Peak were
transferred to MGM. The tenements forming Tallering Peak will
eventually be transferred to MGM under the Mining Rights & Sale
Agreement once the legal impediment has been resolved.

The conditions under the Mining Rights & Sale Agreement were met
on 1 August 2002 and settlement was completed on that day. The
$4.53M consideration received consisted of $1.405M in cash paid
to the Company, $1M of MGI shares and a $2.125M Converting Note.
The Company's Committee of Creditors approved the terms of the
agreement on 1 August 2002.

Under the Mining Rights & Sale Agreement MGM did not purchase
the Wandina Sheep Station. The station is on the market to be
sold by tender closing on 6 September 2002.

RECONSTRUCTION OF THE COMPANY

It was a condition imposed on the Company when it granted the
Right to Mine to MGM, that a reconstruction proposal with an
associated entity of MGM also be accepted. The reconstruction
proposal submitted by the associated entity, who was a major
shareholder in MGI, provided for a better return to creditors
and the greatest opportunity for the Company to continue in
existence. The reconstruction proposal was approved by the
Committee of Creditors at a meeting held on 11 July 2002 and
accepted by the Company shortly thereafter in a brief exchange
of letters.

In early August 2002, the accepted reconstruction proposal was
withdrawn. The withdrawal of the reconstruction proposal did not
affect the Tallering Peak transaction. Mr Hughes is now holding
discussions with various interested parties to further develop a
suitable new proposal for a restructure of the Company and/or
the sale of it's remaining assets. Under the terms of the Deed
of Company Arrangement approved by the creditors of the Company,
should a suitable proposal be developed, details of the proposal
are to be put before the Committee of Creditors for their review
before it can be put to shareholders. Mr Hughes has agreed with
the secured creditor that a restructuring proposal is to be put
to the Committee of Creditors by no later than 30 September
2002.

Should the Committee of Creditors, approve a restructure
proposal, a meeting of shareholders will be held shortly
thereafter to obtain shareholder approval. In this regard, an
information memorandum containing details of any proposal will
be issued to shareholders prior to the convening of a meeting of
the shareholders.


PHOENIX TECHNOLOGY: Ferrier Hodgson Appointed as Liquidator
-----------------------------------------------------------
Phoenix Technology Corporation Limited (Phoenix) will be wound
up following the expiration of a stay made by Justice Austin of
the Supreme Court of New South Wales on 26 August 2002.

The Australian Securities and Investments Commission (ASIC)
successfully applied to the court for the winding-up order,
however Justice Austin ordered the decision to be stayed for
eight days so that the directors of the company could seek to
overturn that decision within that time.

The stay expired at 4pm on 3 September 2002.

ASIC applied to have Phoenix wound up after alleging that
Phoenix had failed to repay 45 former shareholders who each
elected to have their investments in Phoenix repaid to them.

The repayment option was the result of action taken by ASIC in
2001, in which ASIC alleged that Phoenix had raised funds in
breach of the Corporations Law.

The Court subsequently ordered Phoenix to make an offer to the
affected shareholders, enabling them to obtain a refund of the
money they paid for their shares.

ASIC alleged that the payments totalled $2,172,631. The
repayments were required to be paid on or before 12 November
2001.

None of these payments have been made.

Mr Peter Murray Walker of Ferrier Hodgson in Sydney was
appointed the liquidator of Phoenix.


TUART RESOURCES: AGM to be Held September 27
--------------------------------------------
A General Meeting of the Shareholders of Tuart Resources Limited
will be held at the Celtic Club Inc., 48 Ord Street West Perth,
Western Australia on Friday, 27 September 2002 at 9.00am.

AGENDA

RESOLUTION 1: AUTHORITY FOR ISSUE OF SECURITIES

To consider and if thought fit to pass, with or without
amendment, the following resolution as an ordinary resolution;

"That for the purposes of Listing Rule 7.1 of the Listing Rules
of the Australian Stock Exchange Limited and for all other
purposes, the Directors be authorized to allot and issue up to
300,000,000 fully paid ordinary shares in the capital of the
Company at an issue price of 0.1 cents per share to Digital
Factory Pty Ltd ACN 099 609 426."

RESOLUTION 2: AUTHORITY FOR ISSUE OF SECURITIES

To consider and if thought fit to pass, with or without
amendment, the following resolution as an ordinary resolution:

"That for the purposes of Listing Rule 7.1 of the Listing Rules
of the Australian Stock Exchange Limited and for all other
purposes, the Directors be authorized to allot and issue up to
300,000,000 fully paid ordinary shares in the capital of the
Company at an issue price of 0.1 cents per share to investors
within the meaning of section 708 of the Corporation Act 2001."

RESOLUTION 3: RATIFICATION OF PREVIOUS ISSUES OF SECURITIES

To consider and if thought fit to pass, with or without
amendment, the following resolution as au ordinary resolution:

"That for the purposes of Listing Rule 7.4 of the Listing Rules
of Australian Stock Exchange Limited and for all other purposes,
shareholders ratify and approve the allotment and issue of  
1,928,162 fully paid ordinary shares in the capital of the
Company to Mr Dean Scook at the following issue prices:

30,678,162 shares at 0.24 cents per share on 21 June 2002;
31,250,000 shares at 0.16 cents per share on 1 August 2002."

RESOLUTION 4: AUTHORITY FOR ISSUE OF SECURITIES

To consider and if thought fit to pass, with or without
amendment, the following resolution as an ordinary resolution:

"That for the purposes of Listing Rule 7.1 of the Listing Rules
of the Australian Stock Exchange Limited and for all other
purposes, the Directors be authorized to allot and issue up to
50,000,000 fully paid ordinary shares in the capital of the
Company at an issue price of 0.1 cents per share and up to
45,000,000 listed options to acquire an ordinary share
exercisable at 20 cents on or before 30 June 2003 at an issue
price of 0.1 cents per option to Challiston Pty Ltd CAN 068 826
139."

RESOLUTION 5: AUTHORITY FOR ISSUE OF SECURITIES IN FULFILMENT OF
LIABILITIES

To consider and if thought fit to pass, with or without
amendment, the following resolution as an ordinary resolution:

"That not for the purposes of Listing Rule 7.1 of the Listing
Rules of the Australian Stock Exchange Limited and for all other
purposes, the Directors be authorized to allot and issue up to
150,000,000 fully paid shares ordinary shares in the capital of
the Company to creditors of the Company who comprise investors
within the meaning of section 708 of the Corporations Act and
who are prepared to accept such shares in satisfaction of all or
part of their debts to the Company provided such shares shall be
valued for the purpose of debt satisfaction at not less than
0.24 cents per fully paid share."


UECOMM LIMITED: Sells People Telecom Stake
------------------------------------------
Uecomm Limited announced Wednesday that it has sold its
shareholding in voice reseller People Telecom Limited. Uecomm
will receive $1.45 million for the sale of its 15% shareholding.
Uecomm wrote down the value of its People Telecom holding to $1
million in December 2001.

The services agreement with People Telecom which was announced
at the time of the share acquisition will be replaced by the
provision of services to People Telecom at no cost to Uecomm up
to a maximum of $500,000 over two years.


WESTERN METALS: September 27 GM Scheduled
-----------------------------------------
Western Metals Limited advised that the general meeting of the
Shareholders of the Company will be held at The Sheraton Hotel,
207 Adelaide Terrace, Perth, Western Australia 6000 at 9.00am
(WST) on 27 September 2002.

The following resolutions to be considered at the General
Meeting are as follows:

RESOLUTION 1 - APPROVAL OF THE PLACEMENT BY THE COMPANY ON 26
JULY 2002 OF IN AGGREGATE 121,358,721 SHARES TO THE NOTEHOLDERS
(LISTING RULES 7.1 AND 7.4)

To consider and, if thought fit, pass the following resolution
as an ordinary resolution:

"THAT the issue and allotment by the Company on 26 July 2002 of
in aggregate 121,358,721 Shares to the Noteholders (or their
Nominees) be and is hereby approved for all purposes including
rules 7.1 and 7.4 of the Listing Rules."

RESOLUTION 2 - APPROVAL OF (1) THE PLACEMENT BY THE COMPANY OF
IN AGGREGATE 621,896,969 SHARES TO THE NOTEHOLDERS AND THE
ACQUISITION BY THE NOTEHOLDERS AND THEIR RELEVANT ASSOCIATES OF
A RELEVANT INTEREST IN SUCH SHARES AND (2) THE GRANT BY THE
COMPANY TO THE NOTEHOLDERS OF OPTIONS TO SUBSCRIBE FOR IN
AGGREGATE 207,298,989 SHARES AND THE ACQUISITION BY THE
NOTEHOLDERS AND THEIR RELEVANT ASSOCIATES OF A RELEVANT INTEREST
IN SUCH SHARES UPON EXERCISE OF THE OPTIONS (SECTION 611
CORPORATIONS ACT AND LISTING RULE 7.1)

To consider and, if thought fit, pass the following resolution
as an ordinary resolution:

"THAT:

   (1) the issue and allotment by the Company of in aggregate
621,896,969 Shares to the Noteholders (or their Nominees) as
contemplated by the Amended and Restated Noteholder Standstill
Agreement;

   (2) the acquisition by each of the Noteholders of a Relevant
Interest in such 621,896,969 Shares;

   (3) the acquisition by the Relevant Associates of a Relevant
Interest in such 621,896,969 Shares;

   (4) the grant by the Company to the Noteholders (or their
Nominees) of options to subscribe for in aggregate 207,298,989
Shares as contemplated by the Amended and Restated Noteholder
Standstill Agreement;

   (5) the acquisition by the Noteholders of a Relevant Interest
in such 207,298,989 Shares upon the exercise of the options to
subscribe for those Shares; and

   (6) the acquisition by the Relevant Associates of a Relevant
Interest in such 207,298,989 Shares upon the exercise of the
options to subscribe for those Shares,

be and are hereby approved for all purposes including:

   (a) item 7 of section 611 of the Corporations Act; and

   (b) rule 7.1 of the Listing Rules."

RESOLUTION 3 - APPROVAL OF THE ACQUISITION BY THE COMPANY OF A
RELEVANT INTEREST IN CERTAIN OF ITS OWN SHARES AS A RESULT OF
THE VOLUNTARY ESCROW ARRANGEMENTS (SECTION 611 CORPORATIONS ACT)

To consider and, if thought fit, pass the following resolution
as an ordinary resolution:

"THAT, subject to and conditional upon resolution 2 being passed
by Shareholders, the acquisition by the Company of a Relevant
Interest in:

   (1) the 621,896,969 Shares to be issued and allotted to the
Noteholders (or their Nominees) as contemplated by the Amended
and Restated Noteholder Standstill Agreement; and

   (2) all Shares issued and allotted to the Noteholders (or
their Nominees) upon the exercise of the options to subscribe
for in aggregate 207,298,989 Shares to be granted by the Company
to the Noteholders (or their Nominees) as contemplated by the
Amended and Restated Noteholder Standstill Agreement,

be and are hereby approved for all purposes including item 7 of
section 611 of the Corporations Act."


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C H I N A   &   H O N G  K O N G
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CHEUK TANG: Hearing of Winding Up Petition Set
----------------------------------------------
The petition to wind up Cheuk Tang Stel Products Company Limited
is set for hearing before the High Court of Hong Kong on October
30, 2002 at 10:00 am.   

The petition was filed with the court on August 6, 2002 by SIIC
Finance Company Limited whose registered office is situated at
23rd Floor, Shanghai Industrial Investment Building, 48-62
Hennessy Road, Hong Kong.


ENGLONG GROUP: Winding Up Sought by China Merchants
---------------------------------------------------
China Merchants Bank is seeking the winding up of Englong Group
Limited.  The petition was filed on June 24, 2002, and will be
heard before the High Court of Hong Kong on September 18, 2002
at 9:30 am.

China Merchants holds its registered office at 9th Floor, China
Merchants Bank Building, No. 7088 Shennan Boulevard, Shenzhen,
the People's Republic of China.


NORTHEAST ELEC'L: Awaits Trading Resumption Request Decision
------------------------------------------------------------
Northeast Electrical Transmission & Transformation Machinery
Manufacturing Company Limited recorded loss for three
consecutive years. A shares of the Company were suspended
on 23 April 2002. However, the Company recorded profits in 2002
interim report (A shares), which was audited by the Touche
Tohmatsu Hua Yong Certified Public Accountants

The Board of Directors of the Company is of opinions that the
Company satisfies the requirement to apply for resumption of A
shares on the Shenzhen Stock Exchange (SSE) in accordance to the
relevant requirements of Rules Governing the Listing of
Securities on the Shenzhen Stock Exchange. On 3 September 2002,
the Board placed an application to the SSE for resumption of A
shares on the SSE. The Company appointed Tian Tong Securities
Ltd as promoter on behalf of the Company for resumption of A
shares and appointed Commerce & Finance Law offices.

The SSE will determine whether to accept the application for
resumption of listing on the SSE within five business days of
the application filed by the Company. Provided that the SSE did
not determine within the above period of time or rejected our
application, A shares of the Company would remain suspended on
the Trading in the H shares of the Company will remain suspended
pending the review as to whether the Company is suitable for
listing under the Rules Governing the Listing of Securities on
The Stock Exchange of Hong Kong Limtied.

Further announcement will be made as and when appropriate.


SPLENDID DUESSELDORF: Petition to Wind Up Pending
-------------------------------------------------
The petition to wind up Splendid Duesseldorf Production Limited
is scheduled for hearing before the High Court of Hong Kong on
October 16, 2002 at 10:00 am.  The petition was filed with the
court on July 25, 2002 by Man Chi Keung of Room 1507, Tai Wo
House, Wo Che Estate, Shatin, New Territories, Hong Kong.  


TRAIN GOOD: Winding Up Petition Slated for Hearing
--------------------------------------------------
The petition to wind up Train Good Limited will be heard before
the High Court of Hong Kong on October 23, 2002 at 10:30 am.  

The petition was filed with the court on July 31, 2002 by Lee
Rise Company Limited whose registered office is situated at Room
2802 Tung Wai Commercial Building, 109-111 Gloucester Road, Hong
Kong.


WORLD BUSINESS: Winding Up Petition Hearing Set Late September
--------------------------------------------------------------
The petition to wind up World Business Limited is scheduled to
be heard before the High Court of Hong Kong on September 25,
2002 at 9:30 am.  Wong Sau Chun of 6/F., Koon Mei Building, 127
Lockhart Road, Wanchai, Hong Kong, filed   the petition on July
3, 2002.  


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BANK NIAGA: Bidders to Start Due Diligence
------------------------------------------
ANZ Bank Panin of New Zealand and Commerce Asset Holding Berhad
(Malaysia), the two prospective buyers of a 51 percent
government stake in PT Bank Niaga, would carry out due diligence
before they offer a price, AsiaPulse reports.

According to Syafruddin Temenggung, Chairman of the Indonesian
Bank Restructuring Agency (IBRA), Commerce Asset Holding Berhard
already paid US$10 million in bid bond after a working meeting
with the Parliament on Monday.

There were five investors interested but only the two
consortiums moved further with concrete steps toward submitting
bids.  ANZ Bank and Commerce Asset Holding are old bidders for
Bank Niaga. The government canceled their earlier bids because
they bid below the lowest price set by the government.

The divestment process is expected to be thrashed out this
month. The government plans to sell another 20 percent stake in
Bank Niaga through the stock market.


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J A P A N
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FUJITA CORP: Slashing 800 More Jobs Via Early Retirement
--------------------------------------------------------
Struggling general contractor Fujita Corp will eliminate 800
more jobs by the end of November via an early retirement
program, to reduce its workforce of 3,500 to 2,600 by the end of
March 2003, Kyodo News reports.

The Company had earlier planned to reduce its workforce to 3,000
by the end of March next year and to 2,500 by the end of March
2005.

TCR-AP reported that Fujita, which invested in the real estate
business in the late '80s suffered from debts totaling Y879.2
billion on a consolidated basis.


HANKYU CORPORATION: JCR Downgrades Rating to A
----------------------------------------------
Japan Credit Rating Agency (JCR) has downgraded the ratings of
Hankyu Corporation on the following shelf registration, bonds,
bonds without negative pledge clause and CP program from A+, A
and J-1+ to A, A- and J-1, respectively.

Shelf Registration:
Maximum: Y200 billion
Valid: two years from March 19, 2002

Issues:
Amount(bn) / Issue Date / Due Date / Coupon
bonds no.22
Y8 / May 19, 1999 / May 19, 2004 / 1.35 percent
bonds no.23
Y5 / May 19, 1999 / May 19, 2004 / 1.35 percent
bonds no.24
Y5 / May 19, 1999 / May 19, 2006 / 1.79 percent
bonds no.25
Y10 / Aug. 30, 1999 / Aug. 28, 2009 / 2.23 percent
bonds no.26
Y10 / Aug. 30, 1999 / Aug. 28, 2009 / 2.23 percent
FRN no.27
Y15 / Sep. 28, 2000 / Sep. 30, 2010 / floating
FRN no.28
Y10 / Jun. 28, 2001 / Jun. 28, 2011 / floating
bonds no.29
Y10 / Nov. 19, 2001 / Nov. 19, 2007 / 0.96 percent
Issues (No Negative Pledge)
bonds no.20
Y10 / Sep. 18, 1998 / Sep. 16, 2005 / 1.86 percent
bonds no.18
Y20 / Jul. 24, 1998 / Jul. 24, 2008 / 2.23 percent
bonds no.19
Y10 / Sep. 18, 1998 / Sep. 17, 2010 / 2.46 percent

CP:
Maximum: Y80 billion
Backup Line: 0 percent

Rationale

Hankyu has been pushing for the group restructuring under the
mid-term management plan that was set out in April this year.
The earnings for fiscal 2001 dropped. The Company is expected to
incur a net loss of 11 billion yen for fiscal 2002, incurring
costs for closure of amusement park and other restructuring
measures.

Although the restructuring has progressed well in line with the
management policy, uncertainty over the Company's capability to
maintain and increase the earnings power increased in face of
the still stagnant local economy. Additionally, Hankyu may incur
loss again on the real estate due to the continued fall in the
land prices. Improvement in the financial structure will slow
down. JCR downgraded the rating for the Company, accordingly.

The financial support to the group companies increased the
interest-bearing debt. It plans to sell and securitize the
assets to achieve the goals of more than 6 percent ROE and less
than 10x for the interest-bearing debt/EBITDA ratio for fiscal
2004. The Company needs to narrow down the businesses further to
strengthen the earnings power so that it can offset the expected
drop in the cash flows.


KINKI NIPPON: Downgrades Rating to BBB+
---------------------------------------
Japan Credit Rating Agency (JCR) downgraded the ratings of Kinki
Nippon Railway to BBB+ from A.

Issues:
Amount(bn) / Issue Date / Due Date / Coupon
convertible bonds no.5
Y30 / Nov. 10, 1995 / Mar. 31, 2003 / 0.700 percent
convertible bonds no.6
Y30 / Nov. 10, 1995 / Mar. 31, 2008 / 1.000 percent

Rationale

Kinki Nippon Railway incurred a net loss of 34.5 billion yen for
fiscal 2001 through March 31, 2002, writing off the unrealized
loss of the equity method real estate Company. It offset the
unrealized loss on land for business purpose with the unrealized
railway assets. The financial structure deteriorated more than
expected due to the lowering net worth and the increasing
interest-bearing debt as well as the realization of unrealized
railway assets. It will take time for the Company to improve the
financial ratios to the previous levels even with the measures
to be taken in the future for improvement in the earnings.

Kinki Nippon Railway announced in June this year its
restructuring measures, consisting of cutback in payroll
expenses and liquidation of unprofitable operations. It plans to
reduce the interest-bearing debt by 300 billion yen by the end
of March 2006. It also plans to obtain a net income of 16
billion yen for fiscal 2005 ending March 31, 2006. Kinki Nippon
Railway will write down the assets of the theme park, Shima
Spain Village. It will incur the 4th consecutive loss amounting
to 33 billion yen for fiscal 2002, accordingly. Measures to
improve performance of leisure, hotel and department store are
producing good effects. JCR also believes that the cutback in
payroll expenses will be very effective for improvement in the
earnings. The debt reduction, however, depends on the sales of
assets and businesses. The Company needs to improve the asset
utilization rate and maintain the earnings power as well.


MITSUBISHI SECURITIES: R&I Assigns L-T Rating to A
--------------------------------------------------
Rating and Investment Information, Inc. (R&I) has assigned
Mitsubishi Securities Ltd.'s Senior Long-term Credit Rating to A
and Domestic Commercial Paper Program to a-1.

Issue Limit: 300 billion yen

RATIONALE:

Mitsubishi Securities Co., Ltd., is a securities Company
belonging to the Mitsubishi Tokyo Financial Group Inc. (MTFG).
The Company was formed on September 1, 2002, through the merger
of four securities companies: the retail-oriented Kokusai
Securities Co., Ltd., Tokyo-Mitsubishi Personal Securities Co.,
Ltd., and The Issei Securities Co., Ltd., and the wholesale-
oriented Tokyo- Mitsubishi Securities Co., Ltd. The rating
evaluation is based on the Company's central importance within
MTFG's securities strategy, but also takes into consideration
the lack of an adequate earnings base given the large scale of
the operational risks of the retail division and the fact that,
compared to the major securities firms, the wholesale division
lacks a track record in advance investment.

R&I had previously assigned ratings for Kokusai Securities,
which were on the Rating Monitor scheme, with a Senior Long-term
Credit Rating of (A-) and a CP rating of (a-1). The Bank of
Tokyo-Mitsubishi, Ltd., will have 52.31 percent ownership ratio
and The Mitsubishi Trust and Banking Corp. will have 3.65
percent, with the Company becoming a consolidated subsidiary of
MTFG. The use of the name Mitsubishi and the ability to employ
the three-diamond brand mark of the Mitsubishi Group will
clarify that the Company is officially MTFG's securities arm.

The firm can take advantage of MTFG's management resources in
areas such as its client base, financial base and personnel, and
this gives it strong latent potential to expand its operations.
The operational environment for second-tier and lower ranked
securities companies that are oriented to the retail sector is
becoming increasingly severe. The total deregulation of fees and
commissions in October 1999 has been followed by a decline in
fee rates. In addition, individual investors who make regular
stock purchases, for example using credit transactions, are
increasingly using the Internet for their transactions, so the
standing of the second-tier brokerages on a transaction value
base is falling.

With the asset management needs of private clients changing, all
the nation's brokerages are placing greater emphasis on
investment trusts and securities sales, so competition is
growing more intense in this field, which was Kokusai
Securities' specialist area. The performances of all Japan's
brokerages are suffering from factors such as the slump in the
stock market, but Kokusai Securities had a particularly tough
time in the March 2002 term, with a consolidated operating loss
of 31.8 billion yen (compared to a profit of 11.2 billion yen
the previous year). The four merging companies recorded an
aggregate loss of 39.7 billion yen, with Kokusai Securities
contributing the majority of this.

The Company's sales strength was temporarily damaged by the
imposition of administrative penalties by the FSA, as well as
the preparations for the merger. Another important factor was a
loss of morale among some employees, as a result of changes in
the standards for employee evaluation in line with the promotion
of an asset management style of business aiming to expand
earnings that are not so liable to fluctuate along with stock
market movements.

In the wholesale business, meanwhile, although the Company has
some track record in areas such as underwriting, marketing,
asset securitization as part of corporate restructuring, and M&A
and other deals, this performance compares unfavorably with the
Big Three brokerages. Furthermore, the Company has only just
embarked on development of equity related operations, and a
considerable amount of time will be needed before it can catch
up with the Big Three. The operational environment worsened and
earnings potential declined just after the Company had increased
its staffing levels in advance of an expansion in scale.

There was a large trading loss in the March 2002 term because of
a fall in bank share prices and an expansion in credit spreads
on CBs, and the division recorded a 6.2 billion yen operating
loss (compared to a profit of 300 million yen the previous
year). The main issue for the time being will be to improve the
earnings potential of the retail division. The Company is
planning to cut costs, to review staff deployment and evaluation
methods in order to restore morale, and to expand credit
transactions through steps such as a relaxation in transaction
standards.

Regarding costs, Kokusai Securities launched a voluntary
retirement scheme in June that has cut staff by 350, thus
reducing the cost burden, while the new Mitsubishi Securities
aims to implement further cuts as well. Another issue is to
raise the level of retail assets, but it is unclear whether it
will be possible to do this and still ensure profits given the
severity of the competition. For the Company to enhance its
creditworthiness it will be necessary to generate synergies
between the retail and wholesale activities, as well as
strengthening cooperation with MTFG and raising earnings
potential.


NTT DOCOMO: Launches "Mova(R) F67liS" Handset
---------------------------------------------
NTT DoCoMo, Inc. will launch its "mova(R) F671iS" i-mode(R)
handset on September 6, 2002. The F671iS, an enhanced version of
DoCoMo's popular F67li introduced in September 2001, offers a
variety of new, convenient features, such as larger text and a
function that reads aloud various content.

The F671iS has a large 2.1-inch, 65,536-color TFT LCD for clear
text display, as well as a 1.2-inch auxiliary screen on the back
of the handset for information such as incoming calls, new mail
and new messages. Text size has been enlarged some 65 percent
over the previous model, making i-mode content, e-mail messages,
stored numbers and e-mail addresses, and other menus even easier
to read. In addition, instructions supported with graphics
(arrows, etc.) explain how to perform operations, such as check
call and mail logs, listen to messages and create mail.

DoCoMo's unique `read-aloud' feature provides voice readouts of
a wide variety of information, including mail, call and message
logs, the time and day's date, stored numbers, operating menus
and more. In addition, a `voice activation' feature enables the
user simply to speak into the phone to perform operations such
as retrieve and dial stored numbers. `Voice activation' can also
be used to bring up 10 preset (changeable) menus to confirm ring
volume, new mail and more.

Three one-touch buttons enable speed dialing of three pre-
registered numbers, while large, well-spaced keys make operation
easy.

The new handset will be marketed through all DoCoMo sales
channels. The retail price is open (not fixed). The standard
accessory kit, including a battery pack, AC adapter and desktop
holder, costs 6,400 yen.

Specifications for the mova F671iS:

Height x width x thickness (folded) 97 x 52 x 28 (mm)
Weight                              Approx. 110g
Continuous stand-by time            Approx. 470 hours
Continuous talk time                Approx. 140 minutes
Data transmission speed             9,600 bps
Color                               Traditional Silver, Eternal
Pink

mova is a registered trademark of NTT DoCoMo, inc. in Japan.
i-mode and FOMA are trademarks or registered trademarks of NTT
DoCoMo, Inc. in Japan and other countries.


TOBU RAILWAY: JCR Downgrades Rating to BBB-
-------------------------------------------
Japan Credit Rating Agency (JCR) downgraded the ratings of Tobu
Railway Co., Ltd. to BBB- from BBB.

Issues:
Amount(bn) / Issue Date / Due Date / Coupon
bonds no.41
Y10 / Sept. 30, 1998 / Sept. 30, 2002 / 1.600 percent
bonds no.38
Y10 / May 13, 1998 / May 13, 2003 / 1.950 percent
bonds no.48
Y10 / June 28, 2000 / June 27, 2003 / 1.100 percent
bonds no.31
Y10 / July 19, 1995 / July 31, 2003 / 2.600 percent
bonds no.44
Y10 / May 17, 1999 / May 17, 2004 / 1.550 percent
bonds no.53
Y10 / Jun. 27, 2001 / Jun. 25, 2004 / 1.000 percent
bonds no.39
Y10 / May 13, 1998 / May 13, 2005 / 2.350 percent
bonds no.43
Y10 / Oct. 20, 1998 / Oct. 20, 2005 / 2.000 percent
bonds no.50
Y10 / Dec. 20, 2000 / Dec. 20, 2005 / 1.650 percent
bonds no.45
Y10 / May 17, 1999 / May 17, 2006 / 2.000 percent
bonds no.51
Y10 / Apr. 23, 2001 / Apr. 23, 2007 / 1.700 percent
bonds no.49
Y10 / Sept. 6, 2000 / Sept. 6, 2007 / 2.240 percent
bonds no.40
Y10 / May 13, 1998 / May 13, 2008 / 2.800 percent
bonds no.42
Y10 / Sept. 30, 1998 / Sept. 30, 2008 / 2.700 percent
bonds no.52
Y10 / Apr. 23, 2001 / Apr. 23, 2009 / 2.130 percent
bonds no.46
Y10 / June 3, 1999 / June 3, 2009 / 2.440 percent

Rationale

Tobu Railway wrote off the unrealized loss on the real estate
amounting to 307.4 billion yen in the previous fiscal year while
realizing the unrealized gains on railway assets. Although the
equity capital was not impaired, selling off the assets to cover
the write offs, the financial strength substantially weakened.
The amount of write-offs was more than expected. With the
financial buffer having gone now, it will be more important than
before that the Company improve the periodic earnings.

The group earnings power has been improving gradually along with
improvement in the performance of the leisure business. The
Company plans to sharply improve the performance of the bus and
leisure businesses under the mid-term plan. On the other hand,
earnings from the real estate leasing and sales that have been
shoring up the group earnings are expected to decline sharply.

Tobu Railway needs to restructure the operations urgently under
the new mid-term management plan and then increase the cash flow
generation capability without impairing the owners' equity. It
also needs to reduce the interest-bearing debt while avoiding
the drop in the earnings power.

TCR-AP reported that Tobu Railway Co expects to rack up a Y70
billion net loss in the year to March 31, a sharp downswing from
the forecast of Y300 million profit released Nov 28.

The Company, which runs a railway network in Kanto area
including Tokyo, announced that its group net balance is likely
to fall into the red in fiscal 2001 due mainly to its adoption
of a reform plan calling for selling real estate and booking the
resulting Y80 billion in losses.


TOKYO ELECTRIC: Investigates Maintenance Work at Power Plants
-------------------------------------------------------------
Following the announcement on August 29, concerning problems
with maintenance work at its nuclear power plants, Tokyo
Electric Power Co. (TEPCO) has decided to take action to
demonstrate its management responsibility regarding these
problems.

TEPCO has begun thorough internal investigations and will
complete this process by mid-September. According to the
investigations so far completed, it is likely that in some cases
TEPCO has actually been involved in the falsification of
records.

The following resignations have been announced:

- Hiroshi Araki will resign as Chairman at the end of September.
- Nobuya Minami will resign as President by mid-October.
- Toshiaki Enomoto will resign as Executive Vice President at
the end of September.
- Gaishi Hiraiwa and Shoh Nasu will resign as Counselors at the
end of September.

About Tokyo Electric Power Co., Inc.

Tokyo Electric Power Company, Incorporated (The) was established
in 1951 and is Japan's largest electric power supplier. The
Company is based in the Tokyo metropolitan area and surrounding
prefectures, operates one hundred and fifty seven hydroelectric
power plants, twenty nine thermal power plants and three nuclear
power plants and supplies electricity to about 23.2 million
households and 2.8 million commercial and industrial customers.
One of the world's largest electric utilities, TEPCO has a
generating capacity of 57,800 MW, produced by fossil fuel (56
percent), nuclear (30 percent), and hydroelectric (14 percent)
power sources.

Seeking diversity in the face of a reduced monopoly status
caused by deregulation, TEPCO is moving into communications. It
owns a major stake in Tokyo Telecommunication Network (TTNet,
local and long-distance phone service). TEPCO is in a
telecommunications joint venture with nine other Japanese
electric companies. For further information, please visit the
Tokyo Electric Power Co., Inc. home page at:
www.tepco.co.jp/index-e.html

According to Wrights Investors service, at the end of 2001,
Tokyo Electric Power Company Incorporate had negative working
capital, as current liabilities were Y3.02 trillion while total
current assets were only Y603.47 billion.

Contact:
Tokyo Electric Power Co., Inc.
Naoki Kobayashi
k.naoki@tepco.co.jp
+81-3-4216-1111


=========
K O R E A
=========


DAEWOO SECURITIES: Woori Moves On With Securities Acquisition
-------------------------------------------------------------
Due to the belief that owning a brokerage house would generate a
synergistic effect, Woori Finance Holdings Chair Yoon Byeong-
cheol said that his financial group intends to move ahead with
its acquisition of Daewoo Securities, the Digital Chosun
reported.

Yoon said on Sunday that his bank would concentrate on expanding
into secondary banking operations. The statement underscores his
obsession with purchasing Daewoo Securities.

Yoon also said that his bank has been eyeing the negotiations
between the government and Hanwha group, over the group's
acquisition of the ailing Korea Life Insurance Co. He suggested
that his group is ready to enter the fight to acquire the
insurer, if negotiations between the government and Hanwha break
down. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 174,
September 3, 2002)


HYUNDAI ENGINEERING: Denies Report on Job Cuts
----------------------------------------------
Hyundai Engineering & Construction Co. denied a newspaper report
from the Chosun Ilbo that it will reduce the number of its
employees to about 3,500 from about 4,250, the Bloomberg
reports.

``We're planning to reallocate some of our workforce to site
management,'' said Hyundai Engineering spokesman Lee Tae Seok.

``They will remain full-time workers. I don't know what
information the report was based on.''

Last year the Company reduced its workforce by about 500, which
include 381 workers who went on voluntary early retirement.

The Company is cutting expenses in return for the last year's
2.9 trillion won ($2.2 billion) bailout.

The Korea Exchange Bank and other lenders took over the builder
in a debt-to-equity swap to reduce Hyundai's 5.16 trillion won
of debt.

DebtTraders reports Hyundai Engineering & Con'n's 0.125%
convertible bond due in 2004 (HYNE04KRN1) trades between 70 and
80. For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=HYNE04KRN1


KOREA ELECTRIC: Moody's Assigns Baa2 Rating; Outlook Positive
-------------------------------------------------------------
Moody's Investors Service has assigned a Baa2 senior unsecured
rating to Korea Electric Power Corporation (KEPCO)'s proposed
USD650 million fixed rate notes due 2007. The rating outlook is
positive.

The rating reflects KEPCO's improved stability in its operating
performance and financial position, supported by the continuing
growth in the Korean economy and sustainability of domestic
electric demand. The rating incorporates Moody's expectation
that the on-going industry reform will bring the benefits of a
lower business risk profile to KEPCO over time. It also
incorporates our expectation that the reform will be implemented
in a manner that manages KEPCO's exposure to power price
volatility in the early years.

Moody's recognizes the potential positive impact on KEPCO's
financial strength of the current proposed industry reform.
KEPCO's diminished participation in the competitive power
generation segment over the medium term will help reduce its
earnings volatility.


The rating agency expects that cash to be raised from the sale
of the five non-nuclear power generation subsidiaries (gencos)
and other non-core assets, such as PowerCom, will help fund
KEPCO's capital expenditure and reduce the Company's financial
leverage. However, it remains uncertain at this stage as to the
timing and amount to be realized, and whether KEPCO will have
full control on the cash proceeds to repay debt.

Despite the uncertainties regarding the future power purchase
and tariffs system, the Ministry of Commerce, Industry and
Energy (MOCIE) will manage the restructuring process in a way
that will ensure KEPCO to continue to have a sound financial
profile. One of the options considered by MOCIE is to use
vesting contracts for an interim period in order to stabilize
the power purchase price, and minimize KEPCO's exposure to
volatility in power prices during the reform process. However,
the discussions are still preliminary and it is important that
some arrangement is put in place to reduce KEPCO's exposure to
this.

The positive rating outlook reflects the potential benefits of
cash to be raised from the sale of the gencos and the resultant
debt reduction, which have not yet materialized. Moody's expects
that the structure of the sale of the first genco will provide
good guidelines regarding the type of vesting contracts to be
adopted, and the amount and use of the sale proceeds. This will
help assess the resultant impact on KEPCO's future financial
profile.

Korea Electric Power Corporation is 53.9 percent owned by the
Korean Government.

According to TCR-AP, as of June 30 2001, Seoul's electric
utility Company has current assets of $3.25 billion against
current liabilities of $7.2 billion.


KOREA ELECTRIC: Powercomm's Third Round of Auction
--------------------------------------------------
The third round of auction for the sale of Powercomm, the
telecom unit of Korea Electric Power Corporation (KEPCO), is due
Wednesday after two previous attempts failed, Maeil Business
Newspaper reports.

Participants of the latest auction round include the Dacom
consortium, which recently brought in Thrunet to the consortium,
and the Hanaro Telecom consortium.

Onse Telecom is said to be in last minute negotiations to form a
consortium rather than participate as a single Company.

An unidentified KEPCO official said it would choose a Company to
be given negotiation priority within this week and wrap up the
sales process by the end of this month.


KUMHO INDUSTRIAL: Hopes To Close Sale of Tire Ops by Year-End
-------------------------------------------------------------
Extending its original end-September target date, Kumho Group
Chairman Park Sam-koo said the group aims to complete the sale
of its tire unit to a consortium comprising Carlyle Group and JP
Morgan by the end of the year instead, the AFX-Asia News
reported.

Kumho Industrial declined to comment on the reasons for the
delay in the talks.

"We can not comment on details of the deal yet. But we will
conclude the talks by the end of the year at the latest," a
Kumho Industrial spokesman said.

At the end of February, Kumho Industrial signed a memorandum of
understanding to sell an 80 percent stake in its tire operations
to the JP Morgan-Carlyle Group consortium. (M&A REPORTER-ASIA
PACIFIC, Vol. No.1, Issue No. 174, September 3, 2002)

According to TCR-AP, Kumho Industrial posted a 23.1 billion won
net loss in the first quarter of 2001. The Company held 3.2
trillion won in liabilities against 4.2 trillion won in assets
as of last June.


SEOUL BANK: Government Hires Goldman to Review Hana Bank Offer
--------------------------------------------------------------
The Korean government has appointed Goldman Sachs Group Inc. to
study Hana Bank's ability to pay the 1.1 trillion won ($916
million) offered for SeoulBank before the government signs a
final contract, the Maeil Business Newspaper and Bloomberg
reported Wednesday.

The result of the examination is due by the end of this week.
The government may restart negotiations with Dallas-based Lone
Star Funds if Hana falls short.

Last month, the government selected Hana to negotiate a takeover
after the lender bid 1.1 trillion won in stock to buy SeoulBank,
beating a 900 billion won cash offer from Lone Star.


===============
M A L A Y S I A
===============


ABRAR CORPORATION: Releases Monthly Business Update
---------------------------------------------------
Abrar Corporation Berhad (Special Administrators Appointed), in
compliance with the monthly announcement pursuant to Practice
Note No. 4/2001 (PN 4/2001) in relation to Paragraph 8.14 of the
Listing Requirements of the Kuala Lumpur Stock Exchange,
announced the following:

On 10 January 2002, the Special Administrators (the SAs) of the
Company held a briefing for interested parties with strong
assets backing and management expertise on the tender procedure
for the submission of offers / proposals on the restructuring
exercise of the Company. The interested parties were required to
submit the offers / proposals on 23 January 2002.

On 6 March 2002, the SAs conducted a restricted re-tender
exercise for the two (2) shortlisted bidders who were required
to submit their revised offers / proposals by 13 March 2002. On
15 April 2002, the SAs of the Company selected a White Knight to
participate in the corporate debt restructuring exercise of the
Company.

On 16 May 2002, the SAs, for and on behalf of ACB, entered into
a Memorandum of Understanding (MoU) with several parties (the
White Knight) to regulate and record the basic understanding of
the key areas of agreement pending finalization and approval of
the Company's corporate restructuring proposal (Workout
Proposal).

On 23 May 2002, the Company announced that the moratorium under
Section 41 of the Pengurusan Danaharta Nasional Berhad Act, 1998
(Danaharta Act), which took effect from 27 May 2000, i.e. the
date of the appointment of SAs to the Company and which expires
on 26 May 2002, has been further extended to 26 May 2003. The
extension of the moratorium is pursuant to Section 41(3) of the
Danaharta Act.

On 11 July 2002, the SAs entered into a Facilitation of Listing
Agreement with Oilcorp Berhad and with the White Knight pursuant
to the MoU dated 16 May 2002 inter alia to transfer the listing
status of the Company to OilCorp Berhad.

On 29 August 2002, Public Merchant Bank Berhad, on behalf of the
Company, announced that the quantum and structure of the
proposed offer for sale of OilCorp Shares (Proposed Offer for
Sale) have been finalized. The Proposed Offer for Sale shall
involve an offer for sale of 43,900,000 ordinary shares of
RM1.00 each in OilCorp (OilCorp Shares) at an offer price of
RM1.10 by the creditors of ACB and the vendors of Oil-Line
Engineering & Associates Sdn Bhd (Oil-Line).

The Company's Workout Proposal will inter alia take into
consideration the interest of all stakeholders that will also
deal with the Company's plans to regularize its financial
condition, its inadequate level of operations and the minimum RM
60 million paid - up capital requirement for companies listed on
the Main Board of the Exchange.


AMSTEEL CORPORATION: Proposed GWRS Still in Progress
----------------------------------------------------
The Directors of Amsteel Corporation Berhad, in accordance with
paragraph 8.14 of the Listing Requirements and paragraph 4.1(b)
of PN4, announced that as of 2 September 2002:

   1. the proposed group wide restructuring scheme announced on
5 July 2000, 8 October 2001, 26 March 2002 and 12 July 2002
(Proposed GWRS) is still in progress;

   2. RHB Sakura Merchant Bankers Berhad, the Financial Adviser
to the Company for the Proposed GWRS, had on 9 August 2002
submitted a joint appeal to the Securities Commission (SC) on
behalf of the Company, Lion Corporation Berhad, Lion Land Berhad
and Angkasa Marketing Berhad on certain of the conditions
imposed by SC in its letter of approval to the Company for the
Proposed GWRS (Appeal). An announcement would be made upon the
receipt of the SC's reply to the Appeal; and

   3. the Company has by a notice dated 19 August 2002 informed
the scheme creditors of the Amsteel Group that the scheme
meetings of Amsteel and its subsidiaries whose debts are
addressed under the Proposed GWRS, will be held on 16 September
2002 and 18 September 2002 at the Novotel Century Hotel, 17-21
Jalan Bukit Bintang, 55100 Kuala Lumpur.


DAMANSARA REALTY: Provides Credit Facilities Status Update
----------------------------------------------------------
Damansara Realty Berhad updates the current status of its
Default in Principal and/or Interest Payment by:

a) Johor City Development Sdn Bhd (JCD) in relation to RM400
million Bank Guarantee Facility (BG Facility);

On 29 August 2002, the guarantor banks of the BG Facility
had given the approval for the discharge/reassignment of the
security created by JCD and DBHD pursuant to the BG Facility
Agreement dated 5 January 2000 entered into between, amongst
others, the guarantor banks, JCD and DBHD as well as the RM540
million Term Loan Standby Letter of Credit Facility Agreement
(SBLC Agreement) dated 21 November 1997 entered into between,
inter-alia, the guarantor banks and DBHD.

The security includes, inter-alia, an assignment of DBHD's
right over Sale and Purchase Agreement on Pusat Bandar Damansara
(PBD) pursuant to the SBLC Agreement, first legal charge in
respect of certain leases over PBD, assignment of rental
proceeds of PBD in favor of the Security Trustee and PBD charge
in escrow. To that effect, a solicitor had been appointed to
proceed with the necessary arrangements for the
discharge/reassignment process.

With regards to the legal suit taken against the guarantor
banks by DBHD, DBHD's solicitor had filed Notices of
Discontinuance with the High Court on 15 and 16 August 2002.

b) DBHD in relation to RM13.7 million Revolving Credit
Facilities (RC Facilities); and

There is no material development on the default of the RC
Facilities. DBHD is still in the process of negotiating with the
Lenders for the purpose of restructuring the said Facilities.

c) Damansara Realty (Pahang) Sdn Bhd (DRP) in relation to RM57.9
million Syndicated Term Loan Facility (Term Loan Facility)  

There is no material development on the default of the Term Loan
Facility. DRP is still in the process of negotiating with the
Lenders for the purpose of restructuring the said Facility.


ESPRIT GROUP: Seeks Regularization Plan Time Extension
------------------------------------------------------
Esprit Group Berhad, in reference to item 4.1(b) of the Practice
No. 4/2001 of the Kuala Lumpur Stock Exchange's disclosure
requirement, informed that the Company was unable to make the
necessary submission to the authorities as per the deadline on
31st August, 2002 as the Company had to sort out its legal
affairs. The Court of Appeal had on 29th August, 2002 granted a
stay of execution of the winding-up order dated 10th May, 2002
pending the disposal of the Company's appeal to the Court of
Appeal.

In view of the above, the Company has written to the Exchange on
30th August, 2002 to seek an extension of two (2) months until
31st October, 2002 in order for the Company to submit its
regularization plans to the relevant authorities.


HAI MING: Proposed Fix RCSLS, ICULS Price Conversion
----------------------------------------------------
On behalf of the Board of Directors of Hai Ming Holdings Berhad,
Public Merchant Bank Berhad informed that the Board of Directors
has proposed to fix the conversion price of the 5-year 4.5%
redeemable convertible secured loan stocks (RCSLS) and 5-year
4.5% irredeemable convertible unsecured loan stocks (ICULS) at
RM1.57 for every one (1) ordinary share of RM1.00 each in HMHB
(HMHB Shares).

The RCSLS and ICULS will be issued as consideration for part
settlement of the total debts owing to the bank lenders of the
HMHB Group and formed part of the Proposed Restructuring
Exercise approved by the shareholders at the Extraordinary
General Meeting held on 17 August 2002.

The conversion price of RM1.57 is based on the five (5) days
weighted average market price of HMHB Shares for the period from
26 August 2002 to 30 August 2002.


HIAP AIK: Finalizing Proposed Restructuring Scheme Terms
--------------------------------------------------------
The Special Administrators of Hiap Aik Construction Berhad, on
behalf of HACB and the shareholders of Lebar Daun Construction
Sdn Bhd (LDCSB) have entered into an Memorandum of
Understanding, with the intention to regulate and record their
understanding of the principal terms of a proposal, which is
comprised of the:

   i) Proposed incorporation of a new company (Newco) for the
purpose of implementing the restructuring scheme;

   ii) Proposed capital reduction and consolidation of HACB
shares;

   iii) Proposed acquisition of HACB by Newco;

   iv) Proposed acquisition by Newco of the entire equity
interest in LDCSB;

   v) Proposed fund raising exercise, which involve a proposed
public issue, proposed offer for sale and a proposed placement.

   vi) Proposed transfer of listing status of HACB to Newco;

   vii) Proposed debt settlement; and

   viii) Proposed transfer of all assets and assumption of
liabilities of HACB to a special purpose vehicle for liquidation
purposes.

(Collectively referred to as "Proposed Restructuring Scheme")

Currently, HACB is still in the midst of finalizing the terms of
the Proposed Restructuring Scheme. Full announcement detailing
the Proposed Restructuring Scheme will be announced in due
course upon finalization.


HOTLINE FURNITURE: Receivers, Managers Appointed to Units
---------------------------------------------------------
The Board of Directors of Hotline Furniture Berhad announced
that there is no further development since the previous
announcement on the submission of plan in regularizing its
financial condition except that the Alliance Bank Malaysia
Berhad had appointed receivers and managers for the following
subsidiaries under the powers contained in the debentures dated
16 July 1999:

   1. Hotline Furniture Manufacturers Sdn Bhd;
   2. Hotline Furniture Trading (Malaysia) Sdn Bhd;
   3. Hotline Furniture Export Trading Sdn Bhd;
   4. Hotline Home Center Sdn Bhd;
   5. Hotline Wooden Furniture Manufacturers Sdn Bhd; and
   6. Hotline Panel Products Sdn Bhd.


L&M CORP.: Invites White Knight to Participate in Restructuring
---------------------------------------------------------------
The Special Administrators of L & M Corporation (M) Bhd, who
were appointed by Pengurusan Danaharta Nasional Bhd (Danaharta)
on 30 August 2002, informed that they will be inviting
prospective proposers/White Knights to evaluate and submit
proposals to restructure L & M Corporation (M) Bhd and its
subsidiary companies (L&M Group). The Special Administrators are
presently preparing an information Memorandum and will be
conducting an open tender exercise soon.

Depending on the outcome of the open tender exercise and on the
proposals received, the Special Administrators will prepare a
Workout Proposal, which will aim to regularize the financial
conditions of L & M Group. The Workout Proposal will be
presented to Danaharta for its approval, after an Independent
Advisor has approved it.

A meeting of secured creditors will then be held to vote on the
Workout Proposal. Once approved by the secured creditors, the
Workout Proposal will be submitted to the authorities for
further approval prior to its implementation.


LONG HUAT: Aims to Ink Purchase Agreement With White Knight
-----------------------------------------------------------
Long Huat Group Berhad is planning to sign the relevant sale and
purchase agreement with Behrang Properties Sdn Bhd and
Perbadananan Kemajuan Negeri Perak collectively known as the
White Knight and consequently release the Requisite Announcement
early in September 2002.

In respect to the appointment of the monitoring accountant (MA)
pursuant to paragraph 6.1 of PN4, at the moment L.Huat is in
process of appointing an accounting firm to act as the MA. The
necessary announcement to the Exchange will be made upon
finalization of the appointment.


LONG HUAT: HSBC Winding Up Petition Adjourned to November's End
---------------------------------------------------------------
Long Huat Group Berhad informed that there is no material
development pertaining to the default in respect of the credit
facilities granted to the Company and its subsidiaries as stated
in the 1 August announcement, save for:

RHB Bank Berhad (RHB) Versus L.Huat

On 31 July 2002, RHB had presented a winding-up petition against
Long Huat Group Timber Industries Berhad, the previous name of
L.Huat. On 8 August 2002, the petitioner withdrew the petition.

HSBC Bank (Malaysia) Berhad (HSBC) Versus L.Huat

HSBC had on 28 September 2001 presented a winding-up petition
against L.Huat. The hearing of the petition, which was earlier
scheduled to be held on 20 August 2002, was postponed. The date
for the mention will be held on 29 November 2002.


MBF HOLDINGS: Finalizes Proposed SOA Documentation Execution
------------------------------------------------------------
Bf Holdings Berhad, pursuant to its announcement dated 15 July
2002 on the Securities Commission's (SC) approval for a further
extension of time until 31 December 2002 for the Company to
implement the Proposed Schemes of Arrangement (Proposed SOA),
announced that the Company is in the midst of finalizing the
legal documentation for execution by MBf-H and the parties
involved in the Proposed SOA.

The Board of Directors of MBf-H, will be submitting an
application to the Kuala Lumpur Stock Exchange (KLSE) for the
listing of and quotation for the new MBf-H shares and warrants
to be issued pursuant to the Proposed SOA, in due course.

Save for the above, there is no further development on the
status of MBf-H's plan to regularize its financial condition
pursuant to PN4/2001 issued by the KLSE, subsequent to the
Company's announcement dated 1 August 2002.


RAHMAN HYDRAULIC: Summons Hearing Set for September 20
------------------------------------------------------
Rahman Hydraulic Tin Berhad (Special Administrators Appointed),
in relation to the Originating Summons issued by the High Court
of Malaya Kuala Lumpur, Suit No. D5- 24- 184- 2002, announced
that an application to strikeout Speed Operations Sdn Bhd and
Assets Growth Berhad's (the Plaintiffs) Originating Summons (the
Application) with costs was filed on 29 August 2002.

The solicitors of RHTB (the 1st Defendant) and the Special
Administrators (the 2nd, 3rd and 4th Defendants) [the
Defendants] filed the Application.

The grounds of the Application are, amongst others:

   a) The Plaintiffs' claim discloses no reasonable cause of
action and/or the Plaintiffs' claim is frivolous or vexatious
and/or otherwise an abuse of process of Court.

   b) The Plaintiffs' Originating Summons has been filed in
contravention of Section 41(1)(e) of the Pengurusan Danaharta
Nasional Berhad Act 1998 (as amended), as the Plaintiffs have
not obtained the prior written consent of Pengurusan Danaharta
Nasional Berhad to file the said Originating Summons.

The said Originating Summons is now fixed for hearing on 20
September 2002.

Further developments on the suit will be announced in due
course.


RNC CORP.: KLSE OKs Articles of Association Amendment Extension
---------------------------------------------------------------
RNC Corporation Berhad, in relation to the Proposed Corporate
and Debt Restructuring Scheme (PRS), the previous Monthly Status
Announcements since 1st March 2001 and also all the
announcements pertaining to the PRS, announced that as of 2
September, 2002:

   (a) The Scheme is still pending the approval of the Kuala
Lumpur Stock Exchange (KLSE) for the listing and quotation of
the ordinary shares, Redeemable Convertible Secured Loan Stocks
(RCSLS) and Redeemable Convertible Unsecured Loan Stocks (RCULS)
on the Main Board of KLSE pursuant to the PRS; and

   (b) The Special Administrators and Affin Merchant Bank Berhad
are in the midst of finalizing an Information Circular detailing
the approved PRS, which will be sent out to shareholders in due
course.

   (c) On 24th July 2002, KLSE had approved for an extension of
time of 3 months until 30th September 2002 to amend the Articles
of Association.


SOUTHERN PLASTIC: Sends Revised Proposal to Institutions
--------------------------------------------------------
Southern Plastic Holdings Berhad, pursuant to KLSE Practice Note
4/2001, paragraph 4.1 (B), announced that the Company had
obtained several written approval from bankers on its informal
schemes and in the process of obtaining the rest of the bankers
approvals. It is expected to sign its Conditional Sales and
Purchases Agreements with its target acquisitions within the
next week.

Currently, the Group and the Company are still in default of
payments towards their bank borrowings (both principal and
interest) from certain financial institutions.

This was a result of the respective banks' actions in freezing
the bank borrowing facilities of the Group and the Company in
view of the Company's proposal of an informal restructuring
scheme. The bank borrowings of the Group and Company comprise
overdrafts, trade lines, and term loans.

The Board of Directors had circulated a revised proposal to the
financial institutions. The Company had obtained principal
agreements from several the financial institutions and in the
process of signing the relevant conditional sales and purchases
agreements with the target acquisitions.

Several financial institutions had taken legal actions to claim
the overdue amounts from the Group and the Company. The Company
is a corporate guarantor for certain of these amounts involved.
The contingent liabilities with respect to these corporate
guarantees amount to RM71 million. The Board is confident of the
success of the negotiation with the bankers and does not foresee
the crystallization of the corporate guarantees. The board has
employed qualified legal advisors to look into these claims to
protect the Group and the Company from legal suits in order for
the proposed restructuring scheme to be implemented.


SPORTMA CORPORATION: Danaharta Further Extends Moratorium
---------------------------------------------------------
The Special Administrators of Sportma Corporation Berhad, namely
Robert Teo Keng Tuan and Vincent Chew Chong Eu, announced that
the moratorium period for the Special Administration of the
Company has been extended by Pengurusan Danaharta Nasional
Berhad for a further period of twelve (12) months from 9
September 2002 to 8 September 2003 to enable the completion and
the implementation of the workout proposal in accordance with
Section 46 of the Pengurusan Danaharta Nasional Berhad Act 1998.


TENCO BERHAD: 18th AGM Scheduled for September 25
------------------------------------------------
Tenco Berhad notified that the Eighteenth Annual General Meeting
of the Company will be held at No. 5, Jalan Pelabur 23/1, 40300
Shah Alam, Selangor Darul Ehsan, Malaysia on Wednesday, 25
September 2002 at 10:00 a.m. to transact these matters:

ORDINARY BUSINESS  

1. To receive the audited financial statements of the Company
for the year ended 31 March 2002 together with the reports of
the Directors and Auditors thereon. (Resolution 1)

2. To approve the payment of Directors' fees for the year ended
31 March 2002. (Resolution 2)

3. To re-elect Leong Chun Yin who retires by rotation in
accordance with Article 88 of the Company's Articles of
Association. (Resolution 3)

4. To re-elect Ian Ghee Eik Kai who retires by rotation in
accordance with Article 95 of the Company's Articles of
Association. (Resolution 4)

5. To re-appoint Messrs Tai Yapp & Co. as Auditors of the
Company and to authorize the Directors to fix their
remuneration. (Resolution 5)

SPECIAL BUSINESS  

6. To consider and, if thought fit, to pass with or without
modification, the following Ordinary Resolution:

"THAT pursuant to Section 132D of the Companies Act 1965, and
subject to the approval of the relevant governmental/regulatory
authorities, the Directors be and are hereby empowered to allot
and issue shares in the Company at any time and upon such terms
and conditions and for such purposes as the Directors in their
absolute discretion deem fit provided that the aggregate number
of shares to be issued does not exceed 10% of the total issued
share capital of the Company for the time being and that the
Directors be and are hereby also empowered to obtain approval
for the listing of and quotation for the additional shares so
issued on the Kuala Lumpur Stock Exchange and that such
authority shall continue to be in force until the conclusion of
the next annual general meeting of the Company." (Resolution 6)

7. To transact any other business of which due notice shall have
been given in accordance with the Companies Act 1965.  


TIMBERMASTER INDUS: Workout Proposal Formulation Continues
----------------------------------------------------------   
Timbermaster Industries Berhad, in compliance with Practice Note
No. 4/2001 (PN 4) in relation to Paragraph 8.14 of the Listing
Requirements of the Kuala Lumpur Stock Exchange, announced that
the Special Administrators (SAs) are currently formulating a
Workout Proposal for TMIB pursuant to Section 44 of the
Pengurusan Danaharta Nasional Berhad Act, 1998 (the Danaharta
Act). TMIB's Workout Proposal will inter alia take into
consideration the interest of all stakeholders and deal with
TMIB's plan to regularize its financial condition and its
inadequate level of operations.

At the time of this announcement, the Company has not received
the approval from KLSE for a further extension of time until 30
September 2002 to make the Requisite Announcement.


=====================
P H I L I P P I N E S
=====================


ABS-CBN: Clinches P3.5B Medium Term Facility
--------------------------------------------
ABS-CBN executed a P3.5-billion Exchangeable Notes Facility
Agreement with majority of its short-term creditors. Out of
total short-term debt of P3.8 billion, creditors for P3.5
billion or 90 percent have agreed to the terms of the Note
Facility.

After completing this Notes Facility, ABS-CBN plans to launch a
bond issue. The banks then have the option to convert their
Notes into bonds and sell them to their clients.

Two banks have chosen not to participate in the Notes Facility:

Standard Chartered for P100 million and BNP Paribas for US$3.6
million. ABS-CBN continues to talk to these two banks and
reassures them that after completing the Notes Facility, ABS-CBN
will review refinancing options for the Standard Chartered and
BNP Paribas loans.

"ABS-CBN continues to enjoy the strong backing of its majority
creditors. The two banks represent only 7 percent of its total
short-term loans," said Randolph T. Estrellado, ABS-CBN chief
financial officer.

"Under the Agreement, the banks who participate improve their
position from clean to secured with an MTI (Mortgage Trust
Indenture) on the fixed assets of the Company, and have the
option of converting into a tradeable bond instrument that we
intend to issue when market conditions improve," Estrellado
said.

With the move, ABS-CBN strengthens its balance sheet by
lengthening the maturity profile of its debt and improving its
current ratio to 1.9X.

The broadcaster is the fifth Company among the Benpres Holdings
Corp. group facing debt-payment problems, TCR-AP reports.
Benpres, which is the parent of ABS-CBN, is seeking to
reorganize $202 million of debt due this year.

According to Wright Investors Service, at the end of 2001, ABS-
CBN Broadcasting had negative working capital, as current
liabilities were 7.11 billion Philippine Pesos while total
current assets were only 6.33 billion Philippine Pesos.


EAST ASIA: Corporate Legal Counsel Resigns
------------------------------------------
East Asia Power Resources Corporation (PWR), through SEC Form
17-C dated September 2, 2002, informed the Securities and
Exchange Commission (SEC) and the Philippine Stock Exchange,
Inc. (PSE) that Atty. J. Ildebrando B. Ambrosio, Corporate Legal
Counsel and Assistant Corporate Secretary, has resigned
effective August 31, 2002.

According to Wright Investors Service, at the end of 2001, East
Asia Power Resources had negative working capital, as current
liabilities were 2.84 billion Philippine Pesos while total
current assets were only 1.33 billion Philippine Pesos.


NATIONAL POWER: Privatization Thought Helpful to Deficit
--------------------------------------------------------
The privatization of the National Power Corp.'s (Napocor)
generating and transmission assets will help plug the country's
consolidated public sector deficit as it is expected to provide
inflow of investments worth $4 billion to $5 billion, the Power
Sector Asset and Liabilities Management Corp. (PSALM) said.

PSALM President Edgardo del Fonso said Napocor's privatization
would also provide annual savings of about $500 million or P25
billion in financing charges.

"The Government will be faced with worse financial problems if
we do not privatize Napocor. We expect to generate some $4
billion to $5 billion in proceeds from the sale of Napocor
assets, which will be used to pay off its maturing obligations.
If we do not sell Napocor, the Government will have to find ways
including borrowing from different sources to offset the
foregone proceeds. Borrowing would cost us additional financing
charges," Mr. del Fonso said, noting that the country's budget
deficit as of July has hit P133 billion, exceeding the target of
P130 billion by the end of the year.

"Privatizing Napocor will free up the Government of this
financial burden because the operations and maintenance of
Napocor facilities will be passed on to the private sector," Mr.
del Fonso stressed.

PSALM, the spin off Company mandated to undertake Napocor's
privatization, estimates that up- front cash to be derived from
the sale of Napocor assets, both generation and transmission,
will reach $2.1 billion. PSALM also expects to generate some
$2.9 billion from deferred proceeds including concession fees
from the sale of the National Transmission Co. (Transco).
Transco is the spin off Company handling the operations and
maintenance of Napocor's transmission assets.

"There is an urgent need to undertake the privatization of
Napocor. Because of its serious financial problems, Napocor can
no longer maintain, if at all expand, its operations because of
the huge investments required in this business," Mr. del Fonso
said.

He explained that Napocor has been losing approximately P25
billion annually. Any delay in the privatization of Napocor
could mean total annual cost of P50 billion from foregone
savings of P25 billion due to financing costs and another P25
billion in Napocor annual losses.

Mr. del Fonso, thus, echoed the appeal of President Gloria
Macapagal-Arroyo to the legislators to pass the proposed bill
granting franchise rights to Transco.  President Arroyo last
week asked the senators and congressmen to prioritize the
enactment of the Transco franchise bill saying this is an
indication "to the world that the Philippines is still a
functioning economy."

"The Transco franchise bill is a necessary ingredient in
privatizing Transco because without it the would-be owner of
Transco could not operate and control the business. Without it
we can not attract the significant investments from qualified
investors that we need," Mr. del Fonso said.


NATIONAL POWER: ADB Guarantees $750M Bond
-----------------------------------------
The Asian Development Bank (ADB) will guarantee National Power
Corporation's $750 million new bond, DebtTraders analysts,
Daniel Fan (852-2537-4111) and Blythe Berselli (1-212-247-5300)
reported, citing the IFR magazine.

This is a credit enhancement aiming to reduce the overall
borrowing cost of the new issue. The Philippine government
guarantees some of the older National Power Corporation bonds.

The analysts believe that the arrangement will substantially
enhance the credit of Napocor if the new bond has a cross-
default clause, that is, a default on any of the Napocor bonds
will constitute a default on the new bond.

National Power Corporation's 9.750 percent bond due in 2009
(NATP09PHN1) trades between 104.276 and 105.337. For real-time
bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=NATP09PHN1


PHILIPPINE LONG: PSE Meets JG for Penalties Discussion
------------------------------------------------------
Philippine Stock Exchange President Ernest Leung said PSE
officials met JG Summit Holdings Inc on September 3 to discuss
the penalties imposed on the Company for alleged disclosure
violations. JG Summit has been rejecting the reports and has
said it will not be part of the PLDT transaction.

The PSE had fined JG Summit PhP30,000 for failing to immediately
clarify reports that it was part of the joint venture deal
between its owner John Gokongwei Jr. and First Pacific Co Ltd to
take over the Philippine Long Distance Telephone Co.

Coupled with the PhP1,000 daily fine, that penalty has now risen
to PhP80,000. The Company also faces potential delisting of its
shares if it does not pay the fine, Leung said. (M&A REPORTER-
ASIA PACIFIC, Vol. No.1, Issue No. 174, September 3, 2002)


PHILIPPINE LONG: Signs US$145M Loan Facility
--------------------------------------------
The Philippine Long Distance Telephone Co (PLDT) signed on
Wednesday a US$145 million multi-currency term loan facility to
address debt maturing in 2002-2004, AFX News said Wednesday.

The facility was split into two tranches of 10.914 billion yen
and US$53.3 million, respectively, which will be drawn down in
June and December 2003. It will refinance part of the principal
of two outstanding term loans.

The interest on the yen and US dollar tranches is six-month yen
LIBOR plus 385 basis points and six-month usd LIBOR plus 365
basis points, respectively, PLDT said. It will be payable in six
equal semi-annual installments from June 2004, with maturity on
December 2006.

The Company said the favorable response received by the lead
arrangers during the syndication allowed it to raise the amount
of the borrowing from US$130 million to 145 million.

"We are encouraged by the support given to PLDT by our various
creditor groups as we worked on completing our liability
management initiatives," PLDT President Manuel Pangilinan said.

"We believe that this is an affirmation by our lenders that the
fundamentals of our business remain strong. It also demonstrates
the confidence in our Company to deliver on our commitment to
enhance PLDT's position as the country's premiere
telecommunications Company."

PLDT said the new loan will address "a significant part" of its
maturities in 2003, but did not specify any amount. Including
the new facility, PLDT has so far raised US$644 million for its
debt refinancing.

Joint lead arrangers BNP Paribas, Citigroup, ING Bank NV and
Mizuho Corporate Bank Ltd said in a separate statement that the
US$145 million loan will refinance a 19 billion yen syndicated
term loan and a US$103 million term loan maturing in 2003.

They said "the syndication attracted strong support from both
international and domestic banks, and was oversubscribed."

Ten other banks participated in the facility are Banco de Oro
Universal Bank, UOB Philippines, the International Commercial
Bank of China, United World Chinese Commerce Bank, Sumitomo
Mitsui Banking Corp, Bank of Tokyo Mitsubishi, Credit Lyonnais,
Chinatrust Philippines Commercial Bank Corp, Norddeutsche
Landesbank Girozentrale and Equitable PCI Bank.

DebtTraders reports that Philippine Long Distance Telephone's
11.375% bond due in 2012 (TELP12PHS1) trades between 92 and 94.
For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=TELP12PHS1


=================
S I N G A P O R E
=================


BOUSTEAD SINGAPORE: Disposal of Australian Subsidiary
-----------------------------------------------------
The Board of Directors of Boustead Singapore Limited disclosed
Monday that the Company's wholly owned subsidiary, Prevalent
Technologies Pte Ltd, has completed the sale of its entire stake
in its wholly owned Australian subsidiary, Geometry Pty Ltd, to
Mr. Ashley Philip Mahar, Geometry's Managing Director, for a
cash consideration of A$1.00 (approximately S$0.97).

Under the terms of the sale, the Company will also be forgiving
its loan of S$392,000 advanced to Geometry.

Geometry is engaged in the development of spatial technology
application tools and has been operating since October 2000. For
the financial year ended 31 March 2002, Geometry incurred a net
loss of S$138,000 and its net liabilities stood at S$57,000. In
the light of Geometry's current underperformance and uncertainty
over its future prospects, the Board is of the view that it
would be not prudent to continue funding Geometry's operations.

Based on the audited consolidated accounts of Boustead and its
subsidiaries for the financial year ended 31 March 2002 (FY
2002) and on the audited accounts of Geometry for the same year
ended, the disposal of Geometry has the following financial
effects on Boustead:

(a) there will be no significant impact on the net tangible
asset per share of Boustead of S$0.24, assuming that the
disposal had been effected at the end of FY 2002;

(b) the loss per share of Boustead will be increased from
S$0.029 to S$0.030, assuming that the disposal had been effected
at the beginning of FY 2002.

The operating loss before income tax attributable to Geometry
based on the its audited accounts for FY 2002 is S$113,000. The
surplus of the sale proceeds over the net book value of Geometry
is as at 31 March 2002 S$57,000.

None of the Directors of Boustead or, as far as Boustead is
aware, its controlling shareholders have any interest, direct or
indirect, in the disposal of Geometry.


CHARTERED SEMICONDUCTOR: Reiterates Earnings Guidance For Q302
--------------------------------------------------------------
Chartered Semiconductor Manufacturing on Monday reaffirmed its
third-quarter earnings guidance, which was originally provided
on July 19, 2002.

"The quarter is progressing much as we had expected, with
sequential growth in the communications segment of our business
and moderate weakness in the computer segment," said George
Thomas, Vice President & CFO of Chartered. "In our July
guidance, we had projected that revenues would be up 5 percent
sequentially. Midway through the quarter, we are moderating that
guidance slightly and now expect that revenues will be flat to
up 5 percent sequentially, which equates to up approximately 60
to 70 percent from the same quarter last year. Even at the low
end of this band, we still expect to remain within the range of
our original earnings guidance.

"We are continuing to make very good progress on our leading-
edge 0.18-micron shipments. In July we projected that revenues
from 0.18-micron shipments would comprise at least 35 percent of
third-quarter revenues, up from 10 percent in the first quarter
and 24 percent in the second quarter. Our expectation now is
that it will be between 35 and 40 percent of total revenues,"
Thomas stated.

Based on current market and customer trends, the Company's
updated guidance for third quarter 2002 is as follows:

- Revenues: approximately flat to up 5 percent sequentially (up
approximately 5 percent to 10 percent sequentially including
Chartered's share of SMP). Previous guidance was revenues up
approximately 5 percent sequentially (up approximately 10
percent, including Chartered's share of SMP)

- ASP: up approximately 5  percent sequentially, compared to
previous guidance of "up a few percentage points" sequentially
- Utilization: approximately 40 percent, compared to previous
guidance of "low 40s"

- Net loss: approximately $87 million to $90 million, unchanged
from previous guidance  

- Loss per ADS: approximately $0.63 to $0.65, unchanged from
previous guidance

In April, Chartered set a target to double revenues, including
our share of SMP revenues, from first quarter to fourth quarter
of this year. To achieve this target, revenues must grow
approximately 20 percent sequentially in the fourth quarter.
While the latest projections from our customer base continue to
support this target, visibility into the strength of their end
markets continues to be poor, and their demands could moderate.
Chartered will provide specific fourth-quarter guidance in our
earnings release in October.

Webcast Conference Calls

In a separate press release issued Monday, Chartered announced a
Rights Offering. Because of this announcement, two special
conference calls have been scheduled, one timed for investors in
Asia and a second call timed for investors in the US and Europe.

First Conference Call:

- Singapore time: September 2, 2002, at 9:00 a.m. (US time: 9:00
p.m. ET/6:00 p.m. PT, September 1, 2002).  
Second Conference Call:  

- US time: Tuesday, September 3, 2002 at 10:00 a.m. ET/7:00 a.m.
PT (Singapore time: 10:00 p.m., September 3, 2002)

A webcast of both conference calls will be available to all
interested parties on Chartered's web site at
www.charteredsemi.com, under Investor Information, Releases &
Confcalls.

This announcement is in lieu of the mid-quarter update
previously scheduled for Wednesday, September 4, 2002, Singapore
time.

Chartered will release its third-quarter 2002 earnings on
Friday, October 25, 2002, Singapore time, before the Singapore
market opens.

Chartered's original guidance for third-quarter 2002 was
published in the Company's second-quarter 2002 earnings release
which can be found at
http://www.charteredsemi.com/investor/index_financial.htm.


FHTK HOLDINGS: Posts Notice of Shareholder's Interest
-----------------------------------------------------
FHTK HOLDINGS LTD posted a notice of changes in substantial
shareholder Oversea-Chinese Banking Corporation Ltd's interest:

Date of notice to Company: 02 Sep 2002
Date of change of interest: 30 Aug 2002
Name of registered holder: Oversea-Chinese Bank Nominees Private
Limited
Circumstance(s) giving rise to the interest: Others
Please specify details: Change of registered holder

Shares held in the name of registered holder
No. of shares of the change: 1,654,966
percent of issued share capital: 0.13
Amount of consideration per share excluding brokerage,GST,stamp
duties,clearing fee: 0
No. of shares held before change: 7,180,663
percent of issued share capital: 0.6
No. of shares held after change: 8,835,629
percent of issued share capital: 0.73

Holdings of Substantial Shareholder including direct and deemed
interest

- Deemed Direct
No. of shares held before change: 0 189,226,959
percent of issued share capital: 0 15.38
No. of shares held after change: 0 189,226,959
percent of issued share capital: 0 15.38
Total shares: 0 189,226,959

Oversea-Chinese Banking Corporation Limited's direct interest
under registered holder UOB Kay Hian Private Limited is
180,391,330 (14.65 percent) and under registered holder Oversea-
Chinese Bank Nominees Private Limited is 8,835,629 (0.73
percent). Total interest after change is 15.38 percent.


NIPPECRAFT LIMITED: Progress of Negotiation With Bankers
--------------------------------------------------------
Nippecraft Limited announced the progress of negotiation with
the Company's bankers and financial lenders for the month of
August 2002.

a) There are no further developments with the banks.

b) SGX-ST is currently reviewing the draft circular with regards
to the disposal of Collins Office Products International Trading
Limited (COPI).

c) KPMG is continuing in its role as stated in the Company's
previous announcement.

According to Wrights Investor's Service, at the end of 2001,
Nippecraft Limited had negative working capital, as current
liabilities were 130.11 million Singapore Dollars while total
current assets were only 125.05 million Singapore Dollars.


NOBEL DESIGN: Posts Interim Loss of $1.1M
-----------------------------------------
Nobel Design is still in the red with an interim loss of $1.1
million. The Company's 10 percent in turnover to $13.6 million
is due to non-consolidation of Buylateral.com's revenue, GK Goh
reports.

The Company managed to reduce net loss from $4.7 million to $1.1
million mainly attributable to the successful implementation of
stringent cost control measures.

According to GK Goh, the group's outlook has a healthy order
book of $11 million, which will be recognized in the second half
of the year.

However, if the anticipated economic recovery does not
materialize and the business climate and consumer sentiments
continue to deteriorate, the Company would expect its losses to
widen in the second half.

A Company press release revealed on February 2001 that Nobel
Design's Internet businesses namely buylateral.com Pte Ltd and
home2be.com Pte Ltd are likely to incur losses during the second
half-year. The losses in the Internet businesses were mainly due
to lower-than-expected revenues and expenditures required for
market development, branding and infrastructure set-up costs.

This will adversely impact the performance of the Group for the
full year.

TCR-AP reported that Nobel Design Holdings posted a loss of $5.4
million in 2001 versus $2.1 a year earlier.


===============
T H A I L A N D
===============


ADVANCE PAINT: Debt Repayment Under Reorg Plan Completed
--------------------------------------------------------
The Central Bankruptcy Court has approved the Business
Reorganization Plan of Advance Paint and Chemical (Thailand)
Public Company Limited on 5 July 2002 with Bang Pa-In Planners
Company Limited as Plan Administrator.

The Plan Administrator has made repayment of debt to the
creditors under the early repayment provision in clause 4.9 of
the Plan. Consequently, it is regarded that the Plan
Administrator has successfully completed the Plan and could
legally ask the Court to terminate the Plan under the conditions
of the Plan.


HEMRAJ LAND: Proposed Early Bond Redemption Terminated
------------------------------------------------------
Hemaraj Land and Development Public Company Limited, in
reference to the meeting of bondholders relating to
US$60,000,000 3 Percent Convertible Bonds Due 2003 held on
Monday, announced that the purpose of the meeting was to ask the
bondholders to approve the early redemption on 9th September,
2002 of all outstanding bonds at 50 percent of the
nominal value.  All outstanding claims under the bonds, all
accrued interest and any other monetary debts would be waived
and discharged.

The Company also informed that US$22,445,000 of the principal of
the Bonds was produced or represented at the Meeting,
constituting 94.29 percent of the principal amount of the Bonds
outstanding. Of a total number of 22,445 votes cast, 15,915
votes in favor of the proposed resolution, being 70.91 percent
of the total votes cast at the meeting.

However, the approval of this matter required an Extraordinary
Resolution, which must be passed by 75 percent of the total
votes cast at the meeting.  Therefore, the Extraordinary
Resolution has not been passed and the Company will not proceed
with the proposed early redemption at this time.


IMPERIAL PLAZA: Files Business Reorganization Petition
------------------------------------------------------
The Petition for Business Reorganization of Imperial Plaza
Company Limited (DEBTOR), engaged in rental service for
retailing, was filed to the Central Bankruptcy Court:

   Black Case Number 339/2543

   Red Case Number 369/2543

Petitioner: Asia Bank Public Company Limited

Debts Owed to the Petitioning Creditor: Bt2,915,830,883.25

Planner: Mr. Songkram Kijlertpairoj

Date of Court Acceptance of the Petition: May 4, 2000

Court Order for Business Reorganization and Appointment of
Planner: May 29, 2000

Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Matichon Public Company Limited
and Siam Rath Company Limited: June 7, 2000

Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Government Gazette on June 22,
2000

Deadline for the Planner to submit the Business Reorganization
Plan to the Official Receiver: September 22, 2000

Appointment Date of the Creditors' meeting for the plan
consideration has been postponed to January 15, 2001 at 9.30 am.
Convention Room no. 1105, 11th Floor Bangkok Insurance Building,
South Sathorn

The Meeting had passed a resolution selecting a New Planner
Court had issued the order for Selecting a New Planner: January
25, 2001 and Appointed Silom Asset Company Limited to be as the
New Planner

Announcement of Court Order for Selecting the New Planner in
Matichon Public Company Limited and Siam Rath Company Limited:
February 2, 2001

Announcement of Court Order for Selecting the New Planner : in
Government Gazette: March 6, 2001

Appointment Date of the Meeting of creditors for the New Plan
Consideration: May 18, 2001 at 9.30 am. Convention Room no.
1104, 11th Floor Bangkok Insurance Building, South Sathorn

The Meeting of Creditors had no resolution accepting the new
reorganization plan

Court had issued an Order Canceling the Order for Business
Reorganization pursuant to Section 90/48 since June 7, 2001

Announcement of Court Order for Canceling the Reorganization in
Matichon Public Company Limited and Siam Rath Company Limited:
June 18, 2001

Announcement of Court Order for Canceling the Reorganization in
Government Gazette: July 24, 2001

Contact: Mr. Somkit, Tel 6792525 Ext. 144


THAI-GERMAN: Signs Bt1.B Loan Agreement for Improvement Program
---------------------------------------------------------------
Thai-German Ceramic Industry Public Company Limited (TGCI) on
Tuesday announced that it signed a Bt1.5 billion loan agreement
with Siam City Bank Company Limited (SCIB) and Industrial
Finance Corporation of Thailand (IFCT). The funds will be used
to support TGCI's Production Efficiency Improvement Program.

The loan by SCIB is Bt780 million. This includes a Bt530 million
long-term loan and a working capital account of Bt250 million.
The terms of the long-term loan are 6 years and 6 months and the
grace period is 2 years.

Another Bt720 million loan extended by IFCT is comprised of a
Bt530 million long-term loan with a term of 6 years and 6 months
and the grace period of 2 years and a Bt190 million working
capital account.          
  
"The contract signing marked a significant step in the company's
history," said Vongvuthi Vuthinantha, Chairman of Thai-German
Ceramic Industry Plc. "It is our commitment to elevate our
production capabilities to meet international standards in order
to facilitate our business growth. With this major investment,
we will have Asia's most innovative and high-tech ceramic tile
manufacturing facilities."

The TGCI Production Efficiency Improvement Program was designed
to upgrade the production process by using advanced
technologies.  Under the program, TGCI can produce high quality
tile products with lower production costs and enhanced staff
productivity. The new production system is also friendly to the
environment.


* DebtTraders Real-Time Bond Pricing
------------------------------------

Issuer             Coupon   Maturity   Bid - Ask   Weekly change
------             ------   --------   ---------   -------------

Asia Pulp & Paper     FRN     due 2001    10 - 12        -1
Asia Pulp & Paper     11.75%  due 2005  29.5 - 30.5      +2.5
APP China             14.0%   due 2010  27.5 - 29.5      +2
Asia Global Crossing  13.375% due 2006    18 - 20        +1
Bayan Telecom         13.5%   due 2006    19 - 21        0
Daya Guna Sumudera    10.0%   due 2007     3 - 5         0
Hyundai Semiconductor 8.625%  due 2007    61 - 66        0
Indah Kiat            11.875% due 2002    30 - 31        0
Indah Kiat            10.0%   due 2007  26.5 - 28.5      +1
Paiton Energy         9.34%   due 2014    70 - 75        0
Tjiwi Kimia           10.0%   due 2004    25 - 27        0
Zhuahi Highway        11.5%   due 2008    35 - 37        0

Bond pricing, appearing in each Thursday's edition of the
TCR-AP, is provided by DebtTraders in New York. DebtTraders is a
specialist in global high yield securities, providing clients
unparalleled services in the identification, assessment, and
sourcing of attractive high yield debt investments. For more
information on institutional services, contact Scott Johnson at
1-212-247-5300. To view our research and find out about private
client accounts, contact Peter Fitzpatrick at 1-212-247-3800.
Real-time pricing available at www.debttraders.com


S U B S C R I P T I O N  I N F O R M A T I O N

Troubled Company Reporter -- Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick,
Maria Vyrna Nineza-Merlin, Maria Cristina Pernites-Lao, Editors.

Copyright 2002.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.  Information
contained herein is obtained from sources believed to be
reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6 months
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.

                 *** End of Transmission ***