TCRAP_Public/020913.mbx        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

          Friday, September 13, 2002, Vol. 5, No. 182

                         Headlines

A U S T R A L I A

ANACONDA NICKEL: Offers Secured Creditors US$190M Payment
AUSDRILL LIMITED: Back In the Black With A$8.6M Profit
CALTEX AUSTRALIA: S&P's BBB Ratings Unaffected by Results
COLES MYER: Board Supports Chairman Stan Wallis
COLES MYER: Shares Lower Again After Chairman Wallis Stays On

ERG LIMITED: Posts FY Loss of A$243.9M
HIH INSURANCE: Chinese Fraud Duped Senior Members of $US30M
ONE.TEL LTD: Documents Delay Hearing
PASMINCO LIMITED: Investors May Get Priority in Share Sale
PMP LIMITED: S&P Affirms BB+ Ratings, Outlook Stable

POWERTEL LIMITED: Narrows First-Half Loss to $5.5M


C H I N A   &   H O N G  K O N G

CASIL TELECOM: Narrows First-Half Loss to HK$12.895M
GRANDA CASA: Hearing of Winding Up Petition Set
HOP HING: Winding Up Hearing Set for October 16
RAINBOW INTERNATIONAL: Blames HK$44.4M Loss on High Rents
RYODEN DEVELOPMENT: Slides Into Red With HK$20M Loss

VIKAY INDUSTRIAL: Court Sets Sept 25 Winding Up Hearing
WIDESOURCE INTERNATINAL: Faces Winding Up Petition


I N D O N E S I A

BANK MANDIRI: Moving IPO Towards Year-end
SEMEN PADANG: Parent to Appeal Padang Ruling
SINAR MAS: Secures Agreement to Restructure US$18M Debt


J A P A N

ANRITSU CORPORATION: Unveils Stock Acquisition Rights
HITACHI LTD: Revises First-half Business Forecast
HITACHI SEIKI: Mori Seiki Acquires Machine-Tool Maker
HOKKAIDO INTERNATIONAL: Air Do Devises Reconstruction Scheme
MARUBENI CORP: Signs US$140M Contract With Chinese Firm

MATSUSHITA ELECTRIC: Develops Chipset Optical Disc Drives
MEISEI KENSETSU: Declared Suspended From Bank Transactions
SOFTBANK CORP: Moody's Puts B1 Rating on Downgrade Review
SUMITOMO TRUST: Fitch Affirms BBB+ Rating, Negative Outlook


K O R E A

DAEWOO ELECTRONICS: Unit Applies Redundancy Plan for Employees
DAEWOO INTERNATIONAL: Likely to Graduate From Workout Scheme
DAEWOO MOTOR: Sales Unit Rejects Plant Acquisition Reports
HANBO STEEL: Sale Talks Reaches Final Stage
HYNIX SEMICON: DB Proposes to Normalize Via Debt Restructuring

HYNIX SEMICON: Micron Talks Resumption Possible
HYNIX SEMICON: Needs Debt Write-Off to Survive
KIA STEEL: Haewon Invites Hyundai, POSCO to Insolvent Co Bid


M A L A Y S I A

MECHMAR CORPORATION: Winding Up Petition Hearing Moved
SAFIRE PHARMACEUTICALS: Agreement Terms With Pharmaniaga Set
SUNWAY HOLDINGS: Completes Disposal of Sunway Industrial
TECHNOLOGY RESOURCES: Appoints Tan Poh Keat as Director
TECHNOLOGY RESOURCES: Dato' Dr Md Khir Abdul Rahman Quits Board

TECHNOLOGY RESOURCES: Faces Trading Suspension
TECHNOLOGY RESOURCES: Implements Capital Repayment


P H I L I P P I N E S

IPEOPLE, INC.: Board Gives Nod on Subsidiary Dissolution
KUOK PHILIPPINE: Selling Pacific Online Stake to BEL, AGT
NASIPIT LUMBER: Court Declares Lumber Firm Insolvent
PICOP RESOURCES: Clarifies Power Disconnection Report


S I N G A P O R E

ABR HOLDINGS: Voluntarily Winding Up Subsidiary
BOUSTEAD SINGAPORE: Posts Notice of Shareholder's Interest
DATACRAFT ASIA: Secures US$2.6M Contract in Vietnam
FLEXTECH HOLDINGS: Director Tan Pen San Quits Post


T H A I L A N D

CENTRAL PAPER: Considering Resignation of Director
CHRISTIANI & NIELSEN: Set to Restart Rehabco Trading by 1Q03
TPI POLENE: Up 3.46% Capital Increase Alternatives

     -  -  -  -  -  -  -  -

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A U S T R A L I A
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ANACONDA NICKEL: Offers Secured Creditors US$190M Payment
---------------------------------------------------------
Anaconda Nickel Ltd, the debt-laden Australian mining group, has
offered to pay its secured creditors US$190 million as part of
its debt restructuring and re-capitalization plans.

The cash payment is in exchange for the outstanding secured
debts of the Murrin Murrin Holdings Pty Ltd, an indirectly
wholly owned subsidiary of Anaconda Nickel.

The secured creditors together hold close to 50 percent of the
outstanding debt of Murrin Murrin.

Anaconda was one of Australia's 100 largest companies with a
market capitalization of about A$1.5 billion ($815 million) at
its peak in 1999. Its shares have lost about 90 percent of their
value following technical problems with the Murrin Murrin
project - a new design of plant that can extract nickel from
nickel laterite ore.

Negotiations with creditors in New York have been ongoing since
the group defaulted on its $420 million of debt in March.

Anaconda still needs to secure the agreement of a further 25
percent of secured creditors to avoid calling in administrators
by September 15, although this deadline may be extended to
September 30.


AUSDRILL LIMITED: Back In the Black With A$8.6M Profit
------------------------------------------------------
Ausdrill Ltd has moved into the black with a net profit of A$8.6
million (US44.7 million) for the year ending June 30, 2002
compared to a net loss of $8.5 million for 2000/01.

This prompted the company to declare a 1.5 cents partly franked
final dividend, compared to nil previously.

The Perth-based drilling contractor Ausdrill said its reduced
debt by $22.6 million, driving net debt to equity down to 19.9
percent compared to 53.6 percent at June 2001.

Ausdrill said consistent results would enable it to pursue new
opportunities within its core business in Australia and in new
markets offshore. It added that improved performance had been
built on an increase in activity in Western Australia and a
strong contribution from its 50 percent owned African Mining
Services (Ghana) Pty Ltd.


CALTEX AUSTRALIA: S&P's BBB Ratings Unaffected by Results
---------------------------------------------------------
Standard & Poor's Ratings Services said Thursday that Caltex
Australia Ltd.'s (BBB/Negative/A-3) turnaround half yearly
results to June 30, 2002 are in line with expectations.

S&P said that the results reflect the benefits of higher
regional refiner margins, improved refining reliability, and
robust domestic sales. Improved earnings in the past six months
have enabled Caltex to reduce its leverage to 52 percent from 61
percent at December 31, 2001, through working capital
management, a zero dividend policy, limiting discretional
capital expenditure, and operating cost improvements.

The company's funds from operations to debt measure at June 30,
2002, had improved to 26 percent from a weak 1.6 percent for the
corresponding period in 2001, which is in line with its triple-
'B' corporate credit rating.

The oil company remains on track to achieve its debt target of
A$1.075 billion by December 31, 2002, and a further reduction to
A$950 million by December 31, 2003. Caltex's current debt is
about A$1.036 billion.


COLES MYER: Board Supports Chairman Stan Wallis
-----------------------------------------------
After a week of public infighting between company directors, the
Board of Coles Myer Ltd has confirmed its support for Stan
Wallis to remain chairman until the conclusion of the annual
general meeting on November 20.

The Board held an emergency meeting Thursday after Coles Myer
director Solomon Lew's Premier Investments, which holds a 4.9
percent stake in Coles Myer, had demanded Wallis to resign
immediately, labeling his performance as "nothing short of
disastrous".

Also, the Board reaffirmed that it is reviewing a range of
structural options as part of its continuous monitoring of
strategic progress. It has sought the advice of UBS Warburg and
Caliburn Partnership.

Coles Myer, Australia's largest retailer with more than 2,000
stores throughout Australia and New Zealand, has hit hard times
over the past couple of years, largely due to losses in its
department stores.

It was forced to downgrade profits earlier this year, sending
its share price spiraling.


COLES MYER: Shares Lower Again After Chairman Wallis Stays On
-------------------------------------------------------------
Coles Myer Ltd's shares were lower for third consecutive day on
Thursday by 0.8 percent at A$5.90 after Australia's largest
retailer confirmed chairman Stan Wallis will remain on the board
until the November AGM.

Wallis announced Monday he would step down from the company
after the AGM, but fellow director Solomon Lew's Premier
Investments, which owns almost 5 percent of Coles Myer, had
demanded he quit immediately.

According to reports, a key disagreement has stemmed from
Wallis' efforts to bringing in new board members and pressure
Lew and fellow director Mark Leibler not to seek re-election
while it is also considering a proposal to demerge its Myer
Grace Bros and Target divisions from its other operations.


ERG LIMITED: Posts FY Loss of A$243.9M
--------------------------------------
The Directors of ERG Group today announced an improvement in the
second half performance on the back of better than expected cost
savings achieved in the half and second half trading in the
supply and installation segment.

The Group recorded full-year revenue of $301.6 million (an
increase of 1% on the prior year) and a loss of $243.9 million,
which included $165.3 million in one-off write-downs and
provisions, $38.2 million in depreciation and amortization, and
$22.1 million in interest costs.

HIGHLIGHTS OF THE RESULTS

* revenue on a normalised basis (removing the telecoms revenue
from the 2001 year - as the business was sold in 2001 - and non-
trading revenue) grew by more than 25% from $223.0 million to
$280.3 million;

* recurring revenue from infrastructure (long-term fare
collection and smart card projects) jumped 173% from $51.3
million to $140.0 million;

* excluding the one-off write-downs, EBITDA for the second half
was positive $2.3 million compared with a loss of $17.0 million
in the first half;

* cash flow from operations improved in the second half due
primarily to a reduction in employee costs of $21.1 million;

* major projects generating recurring revenue, ie Melbourne and
Rome, are now EBITDA and cash flow positive;

* total R&D costs dropped from $42.3 million in 2001 to $23.2
million in 2002; and

* operating costs have been slashed by over $30 million on an
annualized basis.

Tough market conditions, significant delays in contract awards
by customers and the impact of September 11 on the insurance and
bonding market all impacted the Group's performance in the full-
year. These delays impacted revenue in the full-year by more
than $40 million and led to the high level of staff cuts across
the Group. Furthermore, costs associated with the major Rome
infrastructure project were incurred and the commencement of the
Lazio phase of the project was delayed, resulting in reduced
revenue.

Directors elected not to declare a dividend, compared to a 1
cent unfranked dividend in 2001.

A summary explanation of the result is included as Attachment 1.

REDUCTION OF OPERATING COSTS

Major structural changes were implemented in the second half as
part of an aggressive cost reduction program. The Group's focus
remains on cash flow generation, with expected ongoing annual
savings of $30 million resulting from cost cutting initiatives.

Since the half-year, management's priority has been on:

* achieving aggressive cost cutting targets;

* rationalizing the Proton business acquired in March 2002 and
integrating it with ERG's business;

* reducing the cash outflow from the business; and

* restructuring the Group's finance and strengthening the
balance sheet.

All of these objectives have been achieved or are ongoing.

ONE-OFF CHARGES

The Group made provisions, write-downs and accelerated
depreciation totaling $165.3 million for the year ($155.4
million in the first half and $9.9 million in the second half).
The Directors are hopeful that the write-downs are not permanent
reductions in value but represent a conservative approach to
carrying values. The provisions are substantially due to the
accounting treatment of equity historically received in exchange
for the license of ERG's technology. Although the Directors are
confident of the business plans of each of these entities, they
believe it is difficult to precisely measure the future returns
these investments will generate. Accordingly, provisions were
raised against these investments and other amounts related to
these entities.

GROUP FUNDING

The Group has focused considerable attention on restructuring
its financing and balance sheet to ensure all new projects can
be supported.

ERG has extended its relationship with the ANZ Bank, which has
provided facilities for Melbourne and terms for funding of the
Sydney project. In addition, funding arrangements have been put
in place and others are being negotiated with major banks, and a
major infrastructure group. The total of these arrangements is
over $100 million. This is in addition to the existing $60
million facility for Melbourne.

The unlisted convertible notes, due in October 2002, will be
converted under the terms of agreements reached with the holders
of 100% of those notes, resulting in payments by the Group being
reduced from $22.8 million to an estimated $5-10 million.

Shares held by the Group in Downer EDI have been sold over the
past two months generating approximately $16 million. The
proceeds were used to pay out the Commonwealth Bank.

The Directors are confident the Group has ample funding
available to meet all its commitments and growth prospects.

PROJECT UPDATE

The maturing status of major projects is reflected in the nature
of revenues reported for the year. The infrastructure or
recurring revenue grew 173% to a level comparable with that of
system supply and installation. This growth trend is expected to
continue in future years driver primarily by the large city
projects for which ERG holds long-term outsourcing contracts.
The status of the Group's major projects is as follows:

* The Singapore system - one of the world's most advanced - is
fully operational and a great success, processing more than 1.5
million transactions per day. The customer has entered a three-
year maintenance contract with ERG.

* Rome is now EBITDA and cash flow positive, despite continued
delays in the Lazio area joining the system. The Group has
significant compensation claims lodged in respect to these
delays, which are outside the Group's control. Refinancing of
the Rome project has been deferred due to these delays.

* Melbourne is EBITDA and cash flow positive and the revised
contract arrangements are due to be finalized this month.
Further payments of approximately $20 million are due from the
customer in September. ERG will receive an additional $3 million
per annum for management of the system. Overall performance of
the system has improved significantly with improved cooperation
between both the operators and Government lowering the impact of
vandalism on the system.

* San Francisco Phase 1 has been extremely successful. Phase 1
is continuing with the large operator, MUNI, extending the
system to its entire rail network during Phase 1. A decision to
move to Phase 2 is due before year-end.

* TKE - a new contract in Hong Kong - was delivered ahead of
time and with better profit than budgeted.

DEPRECIATION AND AMORTISATION

Depreciation and amortization increased from $17.1 million in
2001 to $38.2 million in 2002. The increase reflects the first
full year of depreciation of the infrastructure owned by the
Group in the Rome project, amortization of the Proton goodwill
and amortization of the Group's investment in the MASS (multi-
application smart card solution) technology.

REVIEW OF OPERATING SEGMENTS

* Supply and installation. Revenue of $140.4 million was
recorded for the supply and installation of automated fare
collection (AFC) systems throughout the world. Before one-off
items, an operating profit of $3.7 million was recorded. Revenue
was the previous year figure of $171.7 million. The reduction in
revenue was caused by the delay in commencement of certain major
projects which are now due to commence in the current financial
year.

* Infrastructure and cards business. The infrastructure segment
of the business represents the source of long-term recurring
revenue for the Group derived primarily from the outsourced
operation of AFC systems once installed. Revenue from these
sources increased significantly to $140.0 million up from $51.3
million in the previous year. Currently the Melbourne and Rome
projects are the largest individual contributors to this
segment; however their accounting profitability is impacted by
the sizeable depreciation charges against the large-scale
capital equipment infrastructure cost. It should be noted,
however, both projects are currently EBITDA and cash flow
positive. Future infrastructure projects, such as Sydney, will
not follow this format as the AFC system will be owned and paid
for by the customer. Accordingly the operating phase of these
projects will not be burdened with depreciation charges for the
infrastructure.

* R&D and Corporate support. This segment of the business
provides the technology, financing and administrative support to
the two operational segments outlined above. With the Group's
technology at a level of maturity where standardized modules can
be successfully deployed in cities throughout the world, the
necessary level of R&D activities can be reduced significantly.
Total expenditure on R&D in the current year was $23.2 million
compared with $42.3 million in the 2001 financial year.

OUTLOOK

* The Group is hopeful that signing of contracts in Sydney and
Seattle will be finalized during the coming months. Finalization
of these contracts has been delayed by as much as 2-3 years.
Both are supply and long-term operating contracts. In both cases
the Infrastructure equipment is being acquired by the customer
and its operation outsourced to ERG. ERG is the preferred
proponent in both cases.

Project financing is being arranged for Sydney and all other
projects are forecast to be cash flow positive. San Francisco is
expected to move to Phase 2 by the end of the year. The total
value of these new projects is expected to exceed $750 million.

The Group is involved in large tenders in Canada, the
Netherlands, Sweden and the United States (Maryland, Virginia
and Washington DC). Decisions are expected during the current
financial year.

* Today we have also announced that we have been awarded an
important new contact in Las Vegas, which further strengthens
our business in the United States. The contract has been awarded
by the large Canadian group, Bombardier Inc, with whom we will
bid for the Montreal project. The new contract is initially
worth US$6 million.

* Due to delays experienced in the finalization of the contracts
in Sydney, Seattle and elsewhere, the operating revenue from
supply contracts will build towards the end of the current half-
year. Revenue in the second half is expected to be stronger than
the first half as the major projects ramp up.

Overall revenue should grow in 2003 with a much stronger growth
in 2004.

* Depreciation and amortization, mainly arising from the major
infrastructure investments, will continue to run at
approximately $35 million (before amortization of the Proton
World goodwill of $11 million each year).

* EBITDA and operating cash flow is budgeted to improve in 2003
as the cost cutting initiated in the second half of 2002 has
full impact and new projects commence.

Profitability at the EBITDA level in the 2003 year will be, to a
large extent, dependent upon both the timing of signing and
commencement of new projects.


HIH INSURANCE: Chinese Fraud Duped Senior Members of $US30M
-----------------------------------------------------------
HIH's former managing director, Terry Cassidy, has continued
giving evidence to the HIH Royal Commission on how senior
members of the insurance giant were duped by Chinese businessman
Wang Jian Cai in 1996, ABC News reported.

Mr Cassidy told the commission HIH spent A$7.5 million on set-up
costs, then paid Mr Wang US$30 million as capital for their
insurance joint venture.

However, the following year, the company went into
administration and it was revealed Mr Wang had been banned from
being a director of any financial institution for 11 years.

He said the administrators returned the bulk of the company's
money so it was viewed as a type of research and development.

Mr Cassidy also told the inquiry about a deal offered to Dominic
Fodera to encourage him to become HIH's finance director. As
part of his package, Mr Fodera asked for 560,000 shares in the
company, the same amount that had been given to other senior
managers when HIH was floated.

Mr Cassidy testified they did the deal in secret so senior
executives from another company with which HIH had recently
merged would not put their hands out too.


ONE.TEL LTD: Documents Delay Hearing
------------------------------------
Jodee Rich and other top One.Tel managers will not come to trial
for almost a year because lawyers involved in the complex case
brought by the Australian Securities and Investments Commission
say they are bogged down by more than 100,000 documents.

The Courier-Mail reported that some lawyers believe the Supreme
Court hearing may not begin until 2004.

ASIC barrister Philip Durack yesterday issued a plea to Justice
Robert Austin to get the three-month trial started by next June
1.

Mr Durack said ASIC was demanding $93 million in compensation
and wanted former One.Tel bosses banned from running Australian
companies. He said ASIC was "motivated by strong public
interest" in the case and had doubts about some of tactics
adopted by the defense.

ASIC alleges One.Tel founders Jodee Rich and Brad Keeling,
former finance director Mark Silbermann and former chairman John
Greaves breached their duties in the lead-up to the $600 million
collapse on May 29 last year.


PASMINCO LIMITED: Investors May Get Priority in Share Sale
----------------------------------------------------------
Pasminco Ltd administrators Ferrier Hodgson told shareholders
they might be given priority when creditors sell shares in the
zinc miner later this year, the Australian Financial Review
reported.

Pasminco creditors in August approved a A$2.8 billion ($1.5
billion) debt-for-equity swap under which they plan to sell
about half their stake to the public as early as November.

The zinc miner appointed administrators almost a year ago after
debt tripled amid low zinc prices and foreign exchange losses.


PMP LIMITED: S&P Affirms BB+ Ratings, Outlook Stable
----------------------------------------------------
Standard & Poor's Ratings Services said Thursday it had affirmed
its BB+ rating on commercial printer PMP Ltd, and revised the
outlook on the rating to stable from negative.

According to Paul Draffin, associate for Corporate &
Infrastructure Finance Ratings, the outlook revision reflects
the significant reduction in debt levels from the sale proceeds
of the company's U.K. and Australian magazine businesses.

"This debt reduction has significantly improved PMP's financial
profile, and assisted the company in renegotiating its domestic
bank facilities," Draffin said.

Following the debt paydown, PMP's debt levels are now estimated
to be less than A$350 million.

Standard & Poor's notes that the financial covenant package on
PMP's debt facilities remains consistent with a 'BB+' rated
company, which could constrain PMP's financial flexibility in
the event of a material deterioration in print volumes and
earnings.


POWERTEL LIMITED: Narrows First-Half Loss to $5.5M
--------------------------------------------------
The Chairman of PowerTel Limited, Miller Williams, announced
Thursday the telecommunications group's results for the half
year to 30 June 2002.

EBITDA loss for the half year fell to $5.5 million, compared
with a loss of $25.6 million for the previous corresponding
period. The company's loss after tax was $32.4 million, compared
with a loss of $47.0 million in the corresponding period.

Revenue increased to $44.1 million, up 87% from the first half
of 2001 ($23.6 million) and up 68% from the second half of 2001
($26.2 million), and the company became EBITDA (earnings before
interest, tax, depreciation and amortization) positive in June.

"I am very pleased to report that we have achieved the goal we
set six months ago and moved to monthly EBITDA positive during
the half year," Mr Williams said. "This EBITDA momentum has
continued in July (+$410k) and August (+$580k) and we are
confident of remaining EBITDA positive during the second half.

"PowerTel's revenue growth and EBITDA positive achievement
reflect increasing corporate and service provider demand for our
broadband and other services. PowerTel's building to building
connectivity across Sydney, Brisbane and Melbourne offer our
target customers a very competitive alternative product to the
incumbent operators."

"We have continued to increase our customer base, and monthly
corporate and government revenue grew by 37% over the second
half of 2001," Chief Executive Officer Stephen Butler said.
"Higher margin data and internet business accounted for over 39%
of our total revenue for the period.

"Revenue was also boosted by our strategic alliance with
Macquarie Corporate Telecommunications, which began migrating
voice traffic onto the PowerTel network in January. The alliance
continues to meet our expectations and will make a greater
contribution to earnings in the second half.

"At the same time, we succeeded in cutting operating costs to
$20.9 million, 15% lower than the second half of 2001 and 30%
lower than the previous corresponding period. We also reduced
average monthly capital expenditure to $1.8 million (previous
corresponding period: $7.3 million).

"Over four hundred city buildings are connected to PowerTel's
fiber optic network and we are continuing to expand the network
to take advantage of customer opportunities. The PowerTel
network offers voice, data, Internet and broadband services to
most of Australia's leading corporate and professional firms and
is widely regarded as the benchmark for reliability, achieving
over 99.99% availability during the half year."

BALANCE SHEET

PowerTel's total monthly cash outflow has reduced to an average
of $3.4 million per month over the first half (previous
corresponding period: $13.3 million per month). Monthly cash
outflow has reduced to $1.4 million by the end of the half-year.

PowerTel continues to enjoy support from its banking syndicate
and in September, the company maintained an undrawn $24.5
million bank facility for future operational requirements. In
addition, the company is actively exploring alternative sources
of finance to strengthen its balance sheet.

MAJOR SHAREHOLDER UPDATE

Williams Communications, a 45% shareholder of PowerTel, has
announced it expects to emerge from US Chapter 11 bankruptcy in
the second half of 2002. Williams Communications' bankruptcy has
had no operational impact on PowerTel, but has affected new
sales during the first half through negative publicity and
general market uncertainty. As Williams Communications completes
its financial restructuring, PowerTel expects that customer
confidence will be enhanced.

For investor inquiries, contact Stephen Butler of PowerTel
Limited at telephone 02 8264 3888, or for media inquiries,
contact Brian Mahoney at telephone 02 9235 1666, or visit the
company's website at www.powertel.com.au.


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C H I N A   &   H O N G  K O N G
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CASIL TELECOM: Narrows First-Half Loss to HK$12.895M
----------------------------------------------------
First-half net loss of broadband wireless access equipment-maker
Casil Telecommunications Holdings Ltd (Castel) narrowed 76
percent to HK$12.895 million.

Operating loss also narrowed to HK$10.818 million from HK$14.053
million, while sales for the first half of the year stood at
HK$41.547 million against HK$34.586 million in the previous
year.

No interim dividend was declared.

In May, managing director Wang Xiaodong said the company
expected a 60 million yuan contribution from its broadband
wireless access this year. Financial controller Robert Lau said
business was picking up and Castel could break even this year.

For the year ended December 2001, the company posted a net loss
of HK$253.6 million, compared to HK$107.36 million a year
earlier.


GRANDA CASA: Hearing of Winding Up Petition Set
-----------------------------------------------
The petition to wind up Granda Casa Limited was set for hearing
before the High Court of Hong Kong on October 30, at 10:00 am.

RBG Resources PLC (in liquidation), located at Grant Thornton
House, Melton Street, Euston Square, London NW1 2EP., U.K.,
filed the petition with the said court last August 3, 2002.


HOP HING: Winding Up Hearing Set for October 16
-----------------------------------------------
The date for hearing of the petition to wind up Hop Hing
Plumbing Company Limited is scheduled for October 16, 2002 at
10:00 a.m. at the High Court of Hong Kong.

Bank of China (Hong Kong) Limited, located at No. 1 Garden Road,
Central, Hong Kong, filed the petition on July 26.


RAINBOW INTERNATIONAL: Blames HK$44.4M Loss on High Rents
---------------------------------------------------------
Cosmetics retailer Rainbow International Holdings said its net
loss widened to HK$44.4 million in the nine months to July, from
a loss of HK$6.3 million in the same period last year.

The company blamed the dismal performance on the poor economic
environment, adding it was in a difficult financial position and
was in talks to restructure its banking facilities.

Turnover of the Growth Enterprise Market-listed company fell
46.4 percent year on year in the nine months to HK$45.99
million. Gross profit margin tumbled to 10.2 percent from 46.1
percent in the previous corresponding period.

The worst-performing period in the nine months was between May
and July, during which the company recorded a net loss of
HK$30.98 million, compared with a loss HK$2.85 million in the
same period last year.

It also blamed the loss on high rents fixed by tenancy
agreements it signed a few years ago, which resulted in overall
rental expenses being 30% higher than market rents now.  Rainbow
sells beauty and personal care products through six retail
outlets, and provides services in three beauty centers.


RYODEN DEVELOPMENT: Slides Into Red With HK$20M Loss
----------------------------------------------------
Property developer Ryoden Development has recorded a first-half
net loss of HK$20 million.

In the previous corresponding period, it recorded HK$12.22
million net profit.

Turnover fell 70.9 percent to HK$120.63 million against
HK$414.16 million.


VIKAY INDUSTRIAL: Court Sets Sept 25 Winding Up Hearing
-------------------------------------------------------
The Herbert Smith firm of 23rd Floor, Gloucester Tower, 11
Pedder Street, Central, Hong Kong is seeking for the winding up
of Vikay Industrial (Hong Kong) Limited.

The petition was filed on July 3, 2002 at the High Court of Hong
Kong, and will be heard before the said court on September 25,
2002 at 9:30 a.m.


WIDESOURCE INTERNATINAL: Faces Winding Up Petition
--------------------------------------------------
The Longkou City in Shandong, China is seeking for the winding
up of Widesource International Development Company Limited.

The petition was filed on July 26, 2002, and will be heard
before the High Court of Hong Kong on October 16, 2002 at 10:00
a.m.


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BANK MANDIRI: Moving IPO Towards Year-end
-----------------------------------------
PT Bank Mandiri's planned IPO will be launched before the end of
the year, as set under the letter of intent (LoI) signed by the
government with the International Monetary Fund, AFX Asia
reports.

"Under the letter of intent (LoI) with the IMF, the government
promised to launch Bank Mandiri's IPO in June, but it has now
been rescheduled," Bank Mandiri president EC Neloe said.

Neloe said the government still needs time to finalize the
bank's new capital structure and extend the current maturity of
recapitalization bonds.

He said the Privatization Policy Team had previously set the IPO
for a 30 percent stake in the bank, of which 15 percent was
supposed to be a primary issue, with the other 15 percent
comprising government shares.

The government later proposed to increase its share offer to 30
percent and scrap the primary issue altogether.


SEMEN PADANG: Parent to Appeal Padang Ruling
--------------------------------------------
PT Semen Gresik will appeal to the Supreme Court to overturn a
Padang district court ruling rejecting its second petition to
order unit PT Semen Padang to hold a shareholders' meeting on a
management change.

The Padang district court rejected on September 7 Semen Gresik's
petition, saying the petition was not supported by the necessary
approvals from Semen Gresik chief commissioners and vice chief
commissioner.

Gresik lawyer Todung Mulia Lubis of Lubis, Santosa & Maulana
said the company will also request the Supreme Court disqualify
the judge and chairman of Padang district court, Roeslan Dahlan,
for threatening to not approve any petition from Semen Gresik
while he chairs the court.

Semen Gresik, which owns 99.99 percent of Padang, sought a
district court ruling as Semen Padang's board of directors
refused to hold an EGM as requested.

Majority shareholders do not need court approval to call a
shareholders' meeting under Indonesian law, which also
stipulates that a district court ruling is final and cannot be
contested.

Approval of the petition would have forced the West Sumatran-
based subsidiary to hold an extraordinary general meeting, at
which the central government, Semen Gresik's majority
shareholder, plans to replace the board of directors and
commissioners.

PT Semen Padang failed to pay its 200 billion rupiah debt to PT
Jaminan Sosial Tenaga Kerja (Jamsostek) that matured on August
15.


SINAR MAS: Secures Agreement to Restructure US$18M Debt
-------------------------------------------------------
Palm-based consumer company Sinar Mas Agro Resources &
Technology has secured in August an agreement from its creditors
to restructure a debt of Rp159.98 billion (US$18 million).

Asia Pulse reported that Standard Chartered Bank extended
repayment of the debt until 2009.

Sinar Mas Secretary Siany Muliani said that by August 31, the
company still had debts totaling Rp181.99 billion and US$103.99
million.

The remaining debt, which is still in the process of
restructuring, includes Rp113.14 billion and US$85.81 million to
foreign creditors.

TCR-AP reported Wednesday that the Sinar Mas Group (SMG) has
pledged to pay US$40 million as demanded by its creditors,
including the Indonesian Bank Restructuring Agency (IBRA), to an
escrow account as part of its debt-restructuring program.

SMG spokesman Yan Partawidjaja said the company will pay US$20
million by the end of this month and the remaining US$20 million
will follow by the end of next month.


=========
J A P A N
=========


ANRITSU CORPORATION: Unveils Stock Acquisition Rights
-----------------------------------------------------
Anritsu Corporation announced Tuesday that the Exercise Price of
the stock acquisition rights to be issued as stock options and
other related items were decided pursuant to the resolution of
the board of directors held on August 28, 2002.

1. Issue date of stock acquisition rights:

September 10, 2002

2. Number of stock acquisition rights (to be) issued:

309(each stock acquisition right shall be exercisable for 1,000
shares)

3. Class and issued upon experience of stock acquisition rights:

309,000 shares of the Company

4. Amount to be paid upon the exercise of each stock acquisition
right:

707,000 yen (707 yen per share)

The Exercise Price is an amount which is the average of the
closing prices of the Company's shares of common stock on the
Tokyo Stock Exchange on each day (other than any day on which no
sale is reported) of the month immediately preceding the month
in which the date of the issue of the stock acquisition rights,
September 10, 2002, falls, multiplied by 1.05 with any amount
less than one Japanese Yen arising out of such calculation to be
rounded upward to the nearest Yen.

5. Total paid-in value of the shares of the common stock of the
Company to be issued or transferred upon exercise of all the
stock acquisition rights:

218,463,000 yen

6. Amount that is transferred into paid-in capital from the
issue price of shares, in case new shares of common stock of the
Company are issued upon exercise of stock acquisition rights:

354 Yen per share

For Reference

(1) The date of the meeting of the Board of Directors setting
the date for the 76th Ordinary General Meeting of Shareholders
April 25, 2002

(2) Date of the resolution of the 76th Ordinary General Meeting
of Shareholders June 25, 2002

Anritsu is a leading maker of communications equipment such as
switches and routers for local and wide area networks. It is
also heavily involved in the production of measuring systems for
optical and digital networks, as well as weighing machines used
on production lines at food, drugs and other manufacturing
companies. Anritsu is 26.6 percent owned by NEC Corp, and over
40 percent of its sales are to overseas customers.

Anritsu Corporation on March 12 decided to accelerate a
management-restructuring plan due to severe economic downturn,
according to TCR-AP.

The Company announced the following conclusion after their
thorough consideration and discussion in the firm.

According to WorldVest Base, as of 2000, Anritsu Corporation has
Y38.2 million current liabilities and fixed assets of Y32.2
billion.

For further information, contact Hirokazu Hashimoto, Director,
Senior Manager of Accounting Section, at telephone +81-(0)3-
3473-7429, or visit the company website at
www.anritsu.co.jp/English/index_E.html.


HITACHI LTD: Revises First-half Business Forecast
-------------------------------------------------
Hitachi, Ltd. has revised its business forecast for the first
half of fiscal 2002, ending September 30, 2002, and decided on
the interim dividend, at a Board of Directors meeting convened
on September 11, 2002.

1.  Revision of business forecast for the first half of fiscal
2002, ending September 30, 2002

(1) Business forecast, Consolidated (from April 1, 2002 to
September 30, 2002)    

In millions of yen. Year-on-year comparison shown as percentage.

First half of fiscal 2002

Revised     Previous   (A)-(B)    First half
forecast   forecast(*)             of fiscal
(A)         (B)                    2001


Net sales   3,850,000   3,850,000  0    3,938,121
               98 percent         98 percent
Operating income (loss) 52,000   70,000   (18,000) (42,110)
                                 -           -
Income (loss) before
income taxes and            24,000      53,000   (29,000)     
(98,541)

minority interests               -           -
Income (loss) before        12,000      17,000    (5,000)    
(116,696)

minority interests               -           -
Net income (loss)                0       5,000    (5,000)    
(110,543)
                                 -           -
* Previous forecast was announced on April 26, 2002.
(2) Business forecast, Unconsolidated (from April 1, 2002 to
September 30, 2002)

In millions of yen. Year-on-year comparison shown as percentage.

First half of fiscal 2002

Revised     Previous   (A)-(B)    First half
forecast   forecast(*)             of fiscal
(A)         (B)                      2001

Net sales    1,510,000   1,450,000    60,000    1,778,746
                               85 percent         82 percent
Operating income (loss) (3,000)  15,000  (18,000) (28,353)
                                 -           -
Ordinary income (loss) (19,000) 15,000   (34,000) (46,689)
                                 -           -
Net income (loss) 10,000  10,000  0      (29,010)
                                 -           -
* Previous forecast was announced on April 26, 2002.

(3) Reasons for revision

With respect to operating income, in the Power & Industrial
Systems segment, there has been a decrease in the profitability
of major overseas orders of power equipment and other items and,
in Japan, of waste processing plants. In addition, in the
Digital Media & Consumer Products segment, operating income
expects to be depressed by sluggish sales of mobile phones and
room air conditioners.

In the Electronic Devices segment, although in the first quarter
semiconductors and displays exceeded initial estimates, in the
second quarter sales were affected by a softening of the market.
Thus, segment-operating income is expected to be in line with
initial projections.

With respect to other income and deductions, the appreciation of
the yen is expected to give rise to currency exchange losses.

As a result, the initial forecast for income before income taxes
and minority interests and net income has been revised downward.


2. Interim dividend for the fiscal year ending March 31, 2003
3.0 yen per share

Reference: Dividends paid for the fiscal year ended March 31,
2002

Interim dividend:  3.0 yen per share
Year-end dividend: 0.0 yen per share

CONTACT:

Hitachi, Ltd.
Takafumi Ichinose, +81-3-3258-2056 (Japan)
takafumi_ichinose@hdq.hitachi.co.jp
or
Hitachi America, Ltd.
Matt Takahashi, 650/244-7902 (U.S.)
masahiro.takahashi@hal.hitachi.com
or
Hitachi Asia Ltd.
Yuji Hoshino, +65-6231-2522 (Singapore)
yhoshino@has.hitachi.com.sg
or
Hitachi Europe Ltd.
Kantaro Tanii, +44-(0)1628-585379 (U.K.)
kantaro.tanii@hitachi-eu.com


HITACHI SEIKI: Mori Seiki Acquires Machine-Tool Maker
-----------------------------------------------------
Mori Seiki Kosan Co. (MSKC) will acquire failed machine-tool
maker Hitachi Seiki Co. (HSC), the Japan Times reported
Thursday.

Mori Seiki will acquire 450 workers of the combined 830-strong
workforce of Hitachi Seiki and an affiliated maintenance firm.

The move will bolster the size of Mori Seiki's development team
from 250 to 400 people, all of them having the ability to design
new products using a computer-aided design method.

MSKC will alter its corporate name to Mori Seiki Hitech Co. in
line with the acquisition.

Mori Seiki will pay 2.6 billion yen for the assets of Hitachi
Seiki as well as its operations.

According to the report, Mori Seiki will not assume Hitachi's
obligation to repay its debt worth 50.4 billion yen.

In August, Hitachi Seiki asked a court to protect it from its
creditors under the fast-track Civil Rehabilitation Law.

The firm, based in Abiko, Chiba Prefecture, had suffered due to
falling orders from domestic makers. It also took blows from the
higher yen and stagnant U.S. sales.

Hitachi Seiki posted a parent-only net loss of 4.04 billion yen
in the business year to March 31.


HOKKAIDO INTERNATIONAL: Air Do Devises Reconstruction Scheme
------------------------------------------------------------
Insolvent airline Hokkaido International Airlines, widely known
as Air Do, has devised a reconstruction scheme calling on
creditors to surrender up to 100 percent of their credits to the
airline, Kyodo News reports.

The move calls for the Company's 7.2 billion yen capital to be
fully employed to pay its existing debts.


MARUBENI CORP: Signs US$140M Contract With Chinese Firm
-------------------------------------------------------
Marubeni Corporation has signed a US$140 million contract of
250MW Gas-Fired Cogeneration Facility located in the Hsinchu
Science-Based Industrial Park, Hsinchu, Taiwan, Republic of
China on September 4, 2002 with private Company, Hsinyu Energy
Development Company Limited, (HYED) in Hsinchu Capital.

The whole contract will be funded by the equity of the HYED and
the syndication loan in basis on the Project Finance.

The project is developed in line with Government Cogeneration
Law and the power plant, when it's constructed, will be operated
by HYED as owner, then the whole generated electricity and steam
will be sold to the biggest and second biggest semiconductor
boundary companies in the world.

The project is located in the Hsinchu City of Taiwan and
constructed next to Hsinchu Industrial Park and will contribute
to supply suitable electricity to the industrial park. The Power
Plant will be Cogeneration System, which is environmental
friendly technology. Marubeni and its subsidiary, Marubeni Power
Systems Corporation, undertakes this project as prime
contractor, responsible for entire work in the contract
including construction work as well as equipment supply in
cooperation with Japanese leading Company.

Marubeni believes that making the best use of such experiences
in terms of representation as well as vast experiences in Power
plant project business in Asia Region would lead Marubeni to
this success.

Marubeni is intended to continue for putting high priority for
power plant business in Taiwan.

Marubeni Corporation - www.marubeni.co.jp - is a core Company of
Marubeni Group, one of Japan's leading general trading houses.
Operations encompass domestic import, export and offshore trade.
Activities range from the development of natural resources to
the retailed marketing of finished products. For the past
several years, Marubeni Group has been establishing and
enhancing its worldwide information and communication business.

Marubeni Chikusan, a unit of Marubeni Corp, aims to close its 9
branches nationwide, due to a mislabeling scandal, TCR-AP
reports.

The mislabeling case was revealed in March, when the Fair Trade
Commission discovered that the Sendai office had been
mislabeling chicken products between 1999 and 2001.

For further information on the contract, please contact Marubeni
Corporation's Hiroshi Nishizaki at telephone 03-3282-4803 or via
e-mail at Nishizaki-H@marubeni.co.jp.


MATSUSHITA ELECTRIC: Develops Chipset Optical Disc Drives
---------------------------------------------------------
Matsushita Electric Industrial Co., Ltd., best known for its
Panasonic brand of consumer electronics and digital
communications products, has recently announced the development
of a chipset for optical disc drives supporting the DVD-Multi
and CD-R/RW standards.

The DVD-Multi standard, which was developed by DVD forum whose
members included Matsushita, provides full recording and
playback support for the DVD-RAM, DVD-R, and DVD-RW formats,
thus eliminating the need for separate drives.

The new chipset consists of one chip implementing analog
processing functions, such as servo and laser power control, and
a second chip that provides optical disc controller functions.
Products incorporating this chipset will be able to deliver DVD
and CD recording and playback capabilities at the highest level
now available in the industry. Supported functions include 4x
DVD-RAM, 4x DVD-R/RW and CD-R/RW with 24/16x recording. A
PRML(Partial Response Maximum Likelihood) read channel enables
high-speed playback capability and excellent data read accuracy,
achieving 16x DVD-ROM and 48x CD-ROM performance.

In addition, this chipset can support most kinds of optical
pickup systems. Among the technical advances incorporated into
the new chipset are write strategy control technology with pico-
second order accuracy, digital signal processing employing a
proprietary PRML and digital PLL developed by Matsushita, and
high speed signal processing technology that can realize
sampling servo method.

Sample chipsets, priced at 5,000 yen, are scheduled to begin
shipping in September 2002.

Matsushita Electric Industrial Co., Ltd.
(www.panasonic.co.jp/global/top.html), best known for its
Panasonic, National, Technics, and Quasar brands, is a worldwide
leader in the development and manufacture of electronics
products for a wide range of consumer, business, and industrial
needs.

TCR-AP reported that Matsushita has been trying to free itself
out of deep losses caused by the global electronics slump,
diving computer-chip prices and competition from Asian rivals.

For the fiscal year ended in March, the Company posted a loss of
431 billion yen ($3.6 billion) the worst loss since the Company
was founded 80 years ago as sales nose-dived in almost all of
Matsushita's major sectors such as cell phones, electronics
parts, home appliances and industrial equipment.

For further information, please contact Yasuhiro Fukagawa,
International PR in Tokyo, at telephone +81-3-3578-1237, or fax
at +81-3-5472-7608.


MEISEI KENSETSU: Declared Suspended From Bank Transactions
----------------------------------------------------------
Daiwa Bank Holdings, Inc. announced Tuesday that that Meisei
Kensetsu Co., Ltd., which is a customer of its subsidiary bank,
The Daiwa Bank, Ltd. (Daiwa Bank, President: Yasuhisa Katsuta),
failed to honor its bills and was declared suspension of
transactions with banks.

As a result of this development, there arose a concern that the
claims to the Company may become irrecoverable or their
collection may be delayed. Details are:

1. Outline of Meisei Kensetsu

(1) Address              2262 Kuchiganaya, Ikuno-cho, Asago-gun,
Hyogo, Japan
(2) Representative       Noboru Kawai
(3) Amount of capital    50 million yen
(4) Line of business     General Contractor

2. Fact Arisen to the Company and Its Date
Suspension of transactions with banks on declared on September
10, 2002

3. Amount of Claims to the Company
Exposure of Daiwa Bank: Loans    2.8 billion yen
Other subsidiaries of Daiwa Bank HD, Kinki Osaka Bank, Nara Bank
and Asahi Bank have no claims to the Company.

4. Impact of This Development on the Forecasted Earnings of
Daiwa Bank HD This development does not affect the earnings
forecast of Daiwa Bank HD for the fiscal year ending March 31,
2003.


SOFTBANK CORP: Moody's Puts B1 Rating on Downgrade Review
---------------------------------------------------------
Moody's Investors Service has placed Softbank Corp.'s B1 senior
unsecured long-term debt rating under review for possible
downgrade.

The rating review reflects Moody's growing concern that
Softbank's earnings and cash flow will remain under pressure
because of increasingly competitive operating environment for
its asymmetric digital subscriber line (ADSL)-based internet
access service.

The major providers of ADSL services have been consistently
lowering their prices to expand their individual subscriber
bases. The lower prices have contributed to rapid growth of
subscribers in Japan's broadband data-transmission services.
However, the competition has also been intensifying.

Moody's will assess the Company's strategy to maintain rapid
growth in its number of subscribers, given under the
circumstance where Softbank's price competitiveness has been
declining, and how its strategy will impact the Company's
earnings structure.

Softbank Corporation is a leading global provider of various
internet-related businesses. The Company also engages in
software distribution, networking, and publishing services.

According to TCRAP, the Company reported a consolidated net loss
of 88.76 billion yen in the year ended March 31. The Company
aims to reduce its debt and generate cash to finance its ADSL
business, Yahoo BB.


SUMITOMO TRUST: Fitch Affirms BBB+ Rating, Negative Outlook
-----------------------------------------------------------
Fitch Ratings has affirmed its ratings of Sumitomo Trust &
Banking Company's (STBC) long-term rating of 'BBB+' with a
Negative Outlook, Short-term of 'F2', Support of '2' and
Individual of 'D/E'.

STBC reported a net loss for the 2001/2002 fiscal year, its
third in the last five years. However, the size of the recent
loss, equivalent to 5 percent of equity, was about one-third the
14 percent average for the major Japanese banks.

The smaller than average net loss was due to credit charges at 1
percent of loans were well below the major bank composite
average of 2.7 percent. Its year-on-year contraction in equity
of 11 percent was also less than half the 23 percent average for
the major banks.

In addition to the smaller net loss, the negative effect on
STBC's equity of unrealized losses on investment securities was
moderate, relative to peers. The contraction in primary capital
reduced its risk adjusted capital ratios somewhat, to 6.2
percent for Tier I and 10.9 percent for total capital. Even so,
STBC's capital ratios remain better than most Japanese peers.

Problem loans rose by 29 percent during the year to the
equivalent of 6.4 percent of total loans, a ratio that remains
well below the composite average of 9.3 percent.

The Company expects a return to a modest level of profitability
in the current year ending March 2003. However, Fitch remains
cautious about the outlook in view of the tentative nature of
Japan's economic recovery and the bank's substantial exposure to
entities in weak financial condition as well as to the vagaries
of the stock market.


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


DAEWOO ELECTRONICS: Unit Applies Redundancy Plan for Employees
--------------------------------------------------------------
A factory of Daewoo Electronics France in Villers-La -Montagne,
will apply a redundancy plan, which will involve 229 employees
losing their jobs, the Financial Times reports.

The plant manufactures microwave ovens.

The South Korean group is facing financial difficulties and does
not have the funds to modernize its factories.

At present Daewoo employs about 950 people in France compared
with 1,200 at the end of 1990.


DAEWOO INTERNATIONAL: Likely to Graduate From Workout Scheme
------------------------------------------------------------
Daewoo International Corp. and Daewoo E&C Co. are expected to
graduate from the government-led debt workout scheme by 2003,
Asia Pulse reported Thursday.

"First, creditors will discuss ways to give them authority to
manage funds by next month in recognition of their financial
improvements," an unnamed official at Woori Bank said.

"If the current upbeat records continue, we will push for their
graduation from the program early next year," the official
added.

The management authority will aid in upgrading the credit rating
of the Daewoo affiliates, though it would still be difficult to
get fresh lines of credit due to the workout agreement.

Daewoo International returned to a profit in the first half of
2002, posting 20.2 billion won (US$16.89 million) in net
profits, due to rising exports.


DAEWOO MOTOR: Sales Unit Rejects Plant Acquisition Reports
----------------------------------------------------------
Daewoo Motor Sales Corp has rejected local newspaper reports,
saying it does not have any plans to take over Daewoo Motor Co's
Gunsan commercial vehicle plant, AFX Asia reports.

The Daewoo Motor sales unit said the report is "totally
groundless."

Earlier, the Naeway Economic Daily reported that Daewoo Motor
Sales is seeking to take over the truck plant, intending to
convert it into a facility for producing sports utility
vehicles. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 181,
September 12, 2002)


HANBO STEEL: Sale Talks Reaches Final Stage
-------------------------------------------
The ongoing price negotiation between AK Capital and Hanbo
Steel's creditors has reached their final stage, the Digital
Chosun reports.

The acquisition price is estimated at US$370 million.

AK Capital is a Korean consortium led by Kwon Ho-sung, son of
Kwon Chul-hyun, the former owner of Union Steel. In the
international bidding last December to sell off Hanbo Steel, AK
Capital and CHB Steel submitted bids.

In March, the consortium established a memorandum of
understanding (MoU) with Hanbo to acquire the steel maker for
US$410 million.


HYNIX SEMICON: DB Proposes to Normalize Via Debt Restructuring
--------------------------------------------------------------
Deutsche Bank, a financial advisor for the restructuring of
Hynix Semiconductor Inc., proposed that creditors should first
normalize the chipmaker via debt restructuring before selling
the Company, AFX Asia and Yonhap news agency reported Thursday.

Under the proposal, banks were asked to convert about 2 trillion
won in debt into equity and roll over repayments of other debt.

DebtTraders reports that Hyundai Semiconductor's 8.625% bond due
in 2007 (HYUS07KRA1) trades between 60 and 65. For real-time
bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=HYUS07KRA1


HYNIX SEMICON: Micron Talks Resumption Possible
-----------------------------------------------
As no other major chipmaker has shown interest, creditors of
Hynix Semiconductor Inc may have to resume negotiations with
Micron Technology Inc to sell Hynix, evening newspaper Naeway
Economic Daily reported.

Infineon and Samsung Electronics have shown no interest in
Hynix, leaving Micron the only prospective buyer left for the
chipmaker, the report said.

Creditors have yet to decide on whether to sell Hynix's memory
or non-memory units first, according to a Hynix official said.
The official said creditors have also yet to set a date for a
meeting to discuss the details of Hynix's restructuring plans.

The official, however, said that creditors aim to complete the
Company's restructuring by the end of the year. (M&A REPORTER-
ASIA PACIFIC, Vol. No.1, Issue No. 181, September 12, 2002)


HYNIX SEMICON: Needs Debt Write-Off to Survive
----------------------------------------------
Hynix Semiconductor Inc. needs creditors to write of 2 trillion
won ($1.7 billion) of its debt in order to carry on normal
operations, Chosun Ilbo reports.

According to Hynix Chief Executive Officer Park Sang Ho, the
chipmaker could earn as much as 3 trillion won a year to keep up
payments on the remainder of its 6.1 trillion debt, following a
write-off.

In June, Korea Exchange Bank and other creditors took control of
Hynix in a 3 trillion won debt-for-equity swap.


KIA STEEL: Haewon Invites Hyundai, POSCO to Insolvent Co Bid
------------------------------------------------------------
A consortium Haewon Steeltech Co Ltd-led consortium invited
Hyundai Motor Co and POSCO join the consortium in its bid to
take over the insolvent Kia Steel Co, the Korea Economic Daily
reported.

The invitation was contained in an improved proposal submitted
by Haewon to creditors and a court-appointed receiver of Kia
Steel on September 9.

In the new takeover proposal, Haewon said it plans to allocate a
certain stake each to Hyundai Motor and POSCO if they join the
consortium, the report said.

Creditors are reviewing the new proposal positively and are
expected to sell Kia Steel at a compromised price of KRW460-470
billion, the midway point between the asking price of KRW500
billion and the bid price of KRW430 billion, it said.

Both Hyundai Motor Group and POSCO recently dropped their plans
to take over Kia Steel, citing a lack of synergies as one of the
reasons behind their abandoned bids. (M&A REPORTER-ASIA PACIFIC,
Vol. No.1, Issue No. 181, September 12, 2002)


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


MECHMAR CORPORATION: Winding Up Petition Hearing Moved
------------------------------------------------------
Mechmar Corporation (Malaysia) Berhad said Wednesday that the
hearing to strike off a petition by Bonus Point Investment Pte
Ltd to wind up the Company has been postponed to 25 November
2002 pursuant to a settlement agreement between all parties
involved.

Earlier this month, TCR-AP reported that MechMar Corporation has
in August paid RM4 million towards repayment of outstanding
principal due to a syndicated term loan managed by Utama
Merchant Bank Berhad thereby reducing the term loan to RM27
million.


SAFIRE PHARMACEUTICALS: Agreement Terms With Pharmaniaga Set
------------------------------------------------------------
Pharmaniaga Berhad, in a statement to the Kuala Lumpur Stock
Exchange, confirmed Wednesday the salient terms of the agreement
between the company and Safire Pharmaceuticals (M) Sdn Bhd
(Special Administrators Appointed).

Pharmaniaga said that the amount due from Remedi Pharmaceuticals
(M) Sdn Bhd to Safire Pharmaceuticals represents purchase of
pharmaceutical items by Remedi from Safire for trade.

On the Effective Date, Remedi will either:

(i) pay the Pharmaniaga all Remedi book debts, where the company
will then release the same amount to Safire; or

(ii) pay all Remedi book debts directly to Safire.

There will be no related party transaction arising from the
settlement of Remedi book debts as above.


SUNWAY HOLDINGS: Completes Disposal of Sunway Industrial
--------------------------------------------------------
The Board of Directors of Sunway Holdings Incorporated Berhad
(Suninc) is pleased to announce that it has completed on 9th
September 2002 the Proposed Disposal of the entire issued and
paid-up share capital of Sunway Industrial Products Sdn Bhd by
Sunway Marketing Sdn Bhd.

The completion of the disposal was upon fulfillment and
satisfaction of all conditions precedent under the Share Sale
Agreement dated 2nd August 2002.


TECHNOLOGY RESOURCES: Appoints Tan Poh Keat as Director
-------------------------------------------------------
Technology Resources Industries Berhad, in a statement to the
Kuala Lumpur Stock Exchange, said that it had on 11 September
2002 appointed Tan Poh Keat as Non Independent & Non Executive
Director of the company's board.

The 66-year old Director is a professional engineer registered
with the Board of Engineers, a member of the Institution of
Engineers (Malaysia), and member of the Institution of
Electrical Engineers (UK). He finished Bachelor of Engineering
(Electrical) and Master of Engineering in Auckland University.

He joined Jabatan Telekom Malaysia in 1962 as an engineer and
has served in various appointments, the last being Deputy
Director General. Subsequently he joined Telekom Malaysia Berhad
(TMB) as Director, Network Service and retired at the end of
1991.

He was an independent consultant to Maxis Communication Bhd from
1993 - 1998. Currently, he is an independent consultant to
Fujikura Ltd, Japan and Fujikura Federal Cables Sdn Bhd since
1992.

He is also the Non-executive Director in the Boards of IT
Partners Sdn Bhd, Capricorn Engineering Sdn Bhd, and Telekom
Malaysia Berhad.


TECHNOLOGY RESOURCES: Dato' Dr Md Khir Abdul Rahman Quits Board
---------------------------------------------------------------
Technology Resources Industries Berhad (TRI), in a statement to
the Kuala Lumpur Stock Exchange, said that Dato' Dr Md Khir
Abdul Rahman has stepped down as Non Independent & Non Executive
Director of the Company effective 11 September 2002.

Khir said his task as a board member in TRI representing Telekom
Malaysia was to pave the way for the start of the business
combination process between TRI's Celcom and Telekom's TMTouch.

"Since the process is ongoing, it is appropriate that I devote
full attention to the management of the Group. Now I will be
able to oversee the business combination process from Telekom
Malaysia Group's perspective," he said.


TECHNOLOGY RESOURCES: Faces Trading Suspension
----------------------------------------------
Wireless telecommunications provider Technology Resources
Industries Berhad (TRI) said its shares will be suspended for
redistribution today.

The suspension is part of TRI's restructuring plan announced
earlier this year.


TECHNOLOGY RESOURCES: Implements Capital Repayment
--------------------------------------------------
Technology Resources Industries Berhad (TRI) is implementing a
capital repayment to its shareholders pursuant to Section 64 of
the Companies Act, 1965 by way of cancellation of the entire
issued and paid-up ordinary share capital of TRI and the
distribution by TRI of all the issued and paid-up ordinary
shares of RM1.00 each in Celcom (Malaysia) Berhad (formerly
known as Celcom (Malaysia) Sdn Bhd) held by TRI to TRI
shareholders on the basis of one (1) Celcom share for every one
(1) TRI share held.

Shareholders of TRI whose name appear in the Register of Members
of TRI at the close of business at 5.00 p.m. on 26 September
2002 shall be entitled to the Capital Repayment.

To facilitate the recalling and cancellation of the existing TRI
shares and the distribution of Celcom shares to the shareholders
of TRI pursuant to the Capital Repayment, the trading of TRI
shares will be suspended with effect from 9.00 a.m. on Friday,
20 September 2002 until completion of the Capital Repayment and
transfer of listing status to Celcom.

The last day of trading of TRI shares shall be Thursday, 19
September 2002. The TRI shares shall cease to be valid for
trading purposes upon the listing of and quotation for the
Celcom shares on the KLSE. The Celcom shares shall be listed in
place of the TRI shares upon re-quotation. When trading
commences, dealings shall only be in the shares of Celcom.


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


IPEOPLE, INC.: Board Gives Nod on Subsidiary Dissolution
--------------------------------------------------------
The Board of Directors of IEWorks, Inc., a subsidiary of
iPeople, Inc., has approved the dissolution of IEWorks, Inc. by
shortening its corporate life.

Last April 12, 2000, the Company changed its name from
Petrofields Corporation (formerly Petrofields Exploration &
Dev't Co., Inc.) to iPeople Inc.

Petrofields is a wholly owned subsidiary of Benguet Corporation,
which is involved in mineral exploration and development in the
Philippines.

The Company aims to make the Philippines, a country that is
self-sufficient in energy. The Company is continuing its
explorations in areas outside of the petroleum province of North
West Palawan.

Petrofields firmed up its position in Mindanao, the Visayan Sea,
Ragay/Samar Seas, and the Manila Bay. Geographical permits
secured all the potential prospective areas in the Eastern
Philippines basins.


KUOK PHILIPPINE: Selling Pacific Online Stake to BEL, AGT
---------------------------------------------------------
Kuok Philippine Properties, Inc., with reference to Circular for
Brokers No. 2357-2002 dated September 2, 2002, pertaining to the
joint statement issued by Belle Corporation (BEL) and Abacus
Gaming Technologies, Inc. (AGT) with regard to their concluded
Purchase Agreement with Kuok Philippine Properties, Inc. (KPP)
for the purchase and sale of KPP's interest in Pacific Online
Systems Corp. (Pacific Online)

In relation thereto, KPP, in a letter to the Exchange dated
September 9, 2002, disclosed that:

Kuok Philippine Properties, Inc. has finalized agreements to
sell its interests in Pacific Online to Belle Corporation,
Abacus Gaming Technologies, Inc. (Abacus) and Subco Technology,
Inc. (Subco) under the following terms and conditions:

Buyer      No. of Shares

Belle      4,335,577
Abacus     8,671,154
Subco      5,780,769

Total     18,787,500

Purchase Price: P25 million payable as folows:

Downpayment: 30 percent

Balance: Payable quarterly over 24 months at 10 percent interest

Taxes: Capital gains taxes for KPPI's account; documentary stamp
taxes for buyer's account

The Company will inform the Exchange of any developments on this
transaction.

According to TCR-AP, Kuok Philippines Properties Inc posted a
net loss of 156.293 million pesos in the six months to June from
371.131 million a year earlier, due to cost reduction efforts
and a decrease in foreign exchange losses after the
restructuring of a dollar-denominated loan.

The Company's principal activities are property holding and
investments. It is also authorized under its present charter to
engage via direct and indirect investments in the industries of
food, trading, agriculture, construction, and infrastructure
development, including energy-related projects, transportation
and manufacturing.


NASIPIT LUMBER: Court Declares Lumber Firm Insolvent
----------------------------------------------------
Nasipit Lumber Company, Inc. (NAS), with reference to Circular
for Brokers No. 435-2002 dated February 26, 2002 pertaining to
the trading suspension issued on the shares of the Company, in
view of its application for insolvency and liquidation with the
Courts, in accordance with the Exchange's Rule on Delisting of
Securities.

In relation thereto, the Exchange is in receipt of a letter from
the Assignee/Trustee for the Company, which stated that:

An "Order of Adjudication' dated May 7, 2002, promulgated by the
Regional Trial Court, Branch 46, Manila, Nasipit Lumber Company,
Inc., was declared insolvent and all its assets and liabilities
were assigned to a court appointed Liquidator. In effect, the
Company has ceased operation.

The Exchange shall inform the Trading Participants and the
investing public of further developments of the matter.

Construction Nasipit Lumber Co. Inc. was incorporated and
registered with the Securities and Exchange in 1946 primarily to
carry general lumber and timer business.

Its forest concession cover about 98,000 hectares situated in
Tungao, Butuan City and the Municipaalities of Nasipit, Carmen,
Las Nieves and Buenavista, Agusan del Norte. Its factory and
other plant facilities are in Nasipit, Agusan del Norte.

Address:

5/F Maritima Building 117 Dasmarinas Street, Binondo, Manila
(632) 241-4901 to 07

For a copy of the disclosure, go to
http://bankrupt.com/misc/TCRAP_Nasipit0912.pdf


PICOP RESOURCES: Clarifies Power Disconnection Report
-----------------------------------------------------
Picop Resources Inc. responded to recent newspaper reports:

The issue of power disconnection of Picop Resources Inc. (Picop)
from the National Power Corporation (NPC) was the offshoot of
several issues, which Picop was seeking resolution for several
years now.

The fact that Picop did not pay the latest power bills was only
the manifestation of voltage fluctuation consequences that has
accumulated equipment damage amounting to P152 million off grade
products stocks in non moving inventory amounting to P119
million and unfair increase in rates of P140 million since 2001
to June 2002.

The Company had been in several discussions with National Power
Corporation (NPC) to address the issues and it was extremely
difficult on PICOP's part to be always on the threat of
disconnection while the problems remain unresolved.


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


ABR HOLDINGS: Voluntarily Winding Up Subsidiary
-----------------------------------------------
The Board of Directors of ABR Holdings Limited said that
Fairwood Singapore Pte Limited (FSPL), a subsidiary of the
Company has appointed Provisional Liquidators for the purpose of
a creditors' voluntary winding up of FSPL.

FSPL is a dormant Company and based on the latest audited
consolidated accounts of the Group for the financial year ended
31 December 2001, there is no significant impact on the
consolidated net tangible assets per share of the Group.

The loss per share of the Group will reduce by 0.64 cents,
assuming that FSPL has been liquidated at the beginning of the
financial year ending 31 December 2002.


BOUSTEAD SINGAPORE: Posts Notice of Shareholder's Interest
----------------------------------------------------------
Boustead Singapore Limited posted a notice of changes in
substantial shareholder Chew Leong Chee's interest:

Date of notice to Company: 11 Sep 2002
Date of change of interest: 10 Sep 2002
Name of registered holder: Chew Leong Chee
Circumstance(s) giving rise to the interest: Open market
purchase

Shares held in the name of registered holder
No. of shares of the change: 17,000
Percentage of issued share capital: 0.009
Amount of consideration per share excluding brokerage,GST,stamp
duties,clearing fee: S$0.35
No. of shares held before change: 1,432,000
Percentage of issued share capital: 0.77
No. of shares held after change: 1,449,000
Percentage of issued share capital: 0.78

Holdings of Substantial Shareholder including direct and deemed
interest
                                    Deemed    Direct
No. of shares held before change: 17,820,000  1,432,000
Percentage of issued share capital:     9.62       0.77
No. of shares held after change:  17,820,000  1,449,000
Percentage of issued share capital:     9.62       0.78
Total shares:                     17,820,000  1,449,000

Mr. Chew Leong Chee has a deemed interest in the shares held by:

Macondray & Company, Inc - 10,000,000 shares
Representations International (H.K.) Ltd - 6,400,000 shares
ARC Ventures Limited - 1,420,000 shares

Therefore, Mr. Chew Leong Chee's total interest (including
deemed interest) is 19,269,000 (10.40 percent) shares.

No. of Warrants : 180,000
No. of Options : NIL
No. of Rights : NIL
No. of Indirect Interest : 1) Macondray & Company, Inc 500,000
warrants

2) Representations International (H.K.) Ltd 1,520,000 warrants


DATACRAFT ASIA: Secures US$2.6M Contract in Vietnam
---------------------------------------------------
Datacraft secures a new contract to provide Vietnam's second
largest telecommunications carrier, Hanoi Post and
Telecommunications (HNPT), with network infrastructure, Kelive
reports.  

The US$2.6 million contract requires Datacraft Vietnam to design
and build an ISP data centre for HNPT, strengthening the telco's
revenue base ahead of the government's moves to introduce local
loop competition.

Datacraft is excited by the potential of the telecoms market in
Vietnam.  While still in its infancy, the number of Internet
users in Hanoi expected to grow by 400 percent over the next
three years.  HNPT already has a large number of local telephone
service customers and its own customer service capabilities, and
the implementation of the new data center improve capabilities a
step further.

The HNPT contract represents a breakthrough for Datacraft in
Vietnam since it established its operations there in 1998 as the
HNPT contract represents one of Datacraft Vietnam's most
sizeable projects in the service provider sector thus far.

The new contract builds on a shrinking base.  However, it
remains doubtful that the current pace of recovery will enable
Datacraft to return to prior levels of profitability by 2003.  

With the recent change of its fiscal year end to September,
Kelive expects Datacraft to post a loss of US$30 million for the
previous 15-month period.  

The outlook for the Company remains bleak and rebuilding
investor confidence remains an arduous task.  Kelive maintains
sell.

For more information on Kelive market analysis, go to
http://www.kelive.com/kelive/userview/Home.jsp.


FLEXTECH HOLDINGS: Director Tan Pen San Quits Post
--------------------------------------------------
The Board of Directors of Flextech Holdings Limited (FHL)
announced that Dr. Tang Pen San will step down as Chief
Executive Officer and Executive Director of the Company on
September 16, 2002.

Dr. Tang has given notice of his resignation recently. The Board
and Dr. Tang have mutually agreed for an early release from his
responsibilities in FHL.

The Board will take steps to appoint a successor at an
appropriate time. Pending the appointment of a successor, Mr Au
Sai Chuen, the Executive Chairman of the Company, will be the
Acting CEO from 16 September 2002.

During his employment with FHL, Dr. Tang had assisted the group
to regionalize its businesses and grow beyond the core business
of industrial distribution. He was involved in many of the
strategic merger and acquisition projects undertaken by the
group to expand its businesses internationally. He also
contributed and assisted in the formation and initial public
offering of ASTI Holdings Limited and its group of companies on
SESDAQ.

Dr. Tang's departure will not affect the current efforts in
restructuring the FHL group to strengthen its financial
position.

The Board takes this opportunity to thank Dr. Tang for his
service and contributions to the group in the past 6 years and
wishes him the best in his future endeavors.

In August, TCR-AP reported that the shares of the Company
declined S$0.015 or 6.38 percent at a new all time low of 0.22
on concerns that it may have difficulties in raising funds to
meet debt payments.

Flextech Holdings will continue in its efforts towards raising
funds for additional working capital and further reduction of
bank borrowings.


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


CENTRAL PAPER: Considering Resignation of Director
--------------------------------------------------
Central Paper Industry Public Co., Ltd (CPICO), in a statement
to the Stock Exchange of Thailand, said that it is considering
the resignation of Mr.Tawee Srisomboonrananon, the President and
authorized Director.

CPICO director Parkpoom Sitthiprasert said the announcement was
made in compliance with the Board of Directors' Meeting
No.6/2002 held on September 11, 2002.

In May, TCR-AP reported that CPICO had a net loss of Bt98.64
million in the first quarter of 2002 compared to a net loss of
Bt67.36 million at the same quarter in 2001.


CHRISTIANI & NIELSEN: Set to Restart Rehabco Trading by 1Q03
------------------------------------------------------------
Christiani & Nielsen (Thai) Plc plans to ask the Stock Exchange
of Thailand to allow its shares to resume trading in the Rehabco
sector by the first quarter of next year.

The company, whose share trading has been suspended since 1998,
is in the process of restructuring debts of one billion baht,
300 million of which are due for repayment six years from now,
with Siam Commercial Bank as its largest creditor. The remaining
debts are mostly owed to trade creditors.

"The debt restructuring plan being prepared by CN Advisory Co
will be put to the creditors steering committee for
consideration by November 20," Christiani & Nielsen managing
director Danuch Yontrararak said.

Yontrararak added that the firm had to put its equity into the
black first before making the request to the SET. The equity was
currently over 900 million baht in deficit.

The company believes that it will break even this year after
posting a loss of 142.9 million baht last year.


TPI POLENE: Up 3.46% Capital Increase Alternatives
--------------------------------------------------
TPI Polene shares were up 0.60 or 3.46 percent at 17.90 baht on
trade of 2,162 lots after the Central Bankruptcy Court
supervised mediation opened the way for capital increase
alternatives, AFX Asia reported Wednesday.

The meeting has fixed in principle that private placement be
considered first for a capital increase. A public offering has
also been proposed.

Bualuang Securities senior vice president Padermbhop Songkroh
said TPI Polene stock was heavily traded because of speculative
interest following the mediation move.

Investors consider TPI Polene to be of interest if the company
succeeds in increasing capital.



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

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