TCRAP_Public/020930.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

           Monday, September 30, 2002, Vol. 5, No. 193

                          Headlines


A U S T R A L I A

AMP LIMITED: CEO Unveils New Capital Management Initiative
ANACONDA NICKEL: Unveils Rights Issue and Underwriting Contract
ANSETT GROUP: Third Meeting of Creditors
COLES MYER: Posts Notice of New Substantial Shareholder
COLES MYER: Expects to Achieve FY02 Forecast Profit

LIFESTYLE GROUP: Former Director Found Guilty
QANTAS AIRWAYS: Using American Airlines' New Immigration Areas


C H I N A & H O N G  K O N G

ASAT HOLDINGS: S&P Cuts LT Rating to B, Outlook Negative
CENTRO DEVELOPMENTS: Hearing of Winding Up Petition Set
HONG KONG PROPERTIES: Widens Net Loss to HK$82.733M
STRONG PROGRESS: Faces Winding Up Petition on November 13
NASHAN TRADING: Winding Up Petition Pending

STRONG PROFIT: Winding Up Hearing Set For November 6
WAI KEE: Winding Up Petition Slated For October 23


J A P A N

MARUBENI CORPORATION: Barito Files Petition in Court
MATSUSHITA ELECTRIC: Consolidation of CRT Business With Toshiba
MATSUSHITA ELECTRIC: Unveils Organizational Restructuring
MAZDA MOTOR: R&I Assigns BBB- Rating
MITSUBISHI MOTORS: R&I Places on Rating Monitor

NITTESU MINING: R&I Downgrades Rating to BBB
NTT DOCOMO: Sees H102 Loss of Y500B


I N D O N E S I A

BANK NIAGA: DPR Allows Government to Make Stake Sale Decision


K O R E A

HANVIT LEASING: Creditors Seeking Debt-Equity Swap
HYNIX SEMICON: Responds to KSE Queries
HYNIX SEMICONDUCTOR: Micron Gets Tired of Renegotiations
HYNIX SEMICONDUCTOR: HMM Disposes 0.865% Stake in Chipmaker
HYUNDAI HEAVY: Suffers Major Losses in Stock Value

HYUNDAI MERCHANT: Will Pay Back US$253M Outstanding Loans to KDB
SEOUL BANK: Hana Signs Final Contract to Acquire Bank


M A L A Y S I A

AMSTEEL CORPORATION: Proposes Reorganization of Unit
BERJAYA LAND: Proposes Convertible Loan Stocks
BERJAYA SPORTS: Purchases 8% Convertible Loan Stocks
HOTLINE FURNITURE: Creditors Approve Debt Restructuring Scheme
LION LAND: Unit Enters Debt Restructuring Scheme

PAN PACIFIC: Seeks More Time to Regularize Financial Condition
RAHMAN HYDRAULIC: Unit Ceases Operation
SPORTMA CORPORATION: MITI Okays Debt Restructuring Proposal
SUNWAY CITY: SC Okays Proposed ABS Issue


P H I L I P P I N E S

FIRST E-BANK: BDO Wins Approval to Acquire Bank
METRO PACIFIC: No Deal Reached With Ayala Land
PHILIPPINE LONG: Rival Bids for Telecom Could Come After Sep 30


S I N G A P O R E

ASIA PULP: Signs of Escrow Agreement With IBRA
CHARTERED SEMICONDUCTOR: No Changes in Fab 7 Plans
CHARTERED SEMICON: Clarifies Business Times Articles
FLEXTECH HOLDINGS: Expiry of Warrants 2002
HWA HONG: Striking Off Dormant Subsidiaries

LABROY MARINE: Executes 5-Yr S$90M Syndicated Loan Facility
LIANG HUAT: Posts 1H02 Net Loss of S$6.332M
SMRT CORPORATION: Dissolution of Subsidiary


T H A I L A N D

KRUNG THAI: Okays Bht2.6B Loan For ChiangMai

      -  -  -  -  -  -  -  -


=================
A U S T R A L I A
=================


AMP LIMITED: CEO Unveils New Capital Management Initiative
----------------------------------------------------------
AMP Limited acting Chief Executive Officer Andrew Mohl disclosed
a new capital management initiative to strengthen AMP's
financial position, involving the underwriting of the Dividend
Reinvestment Plan (DRP) for the next three dividend payments.

Mohl said he also wanted to provide the market with more detail
about the A$1 billion allocated to support UK Financial Services
(UKFS) minimum regulatory capital (MRC) requirements, announced
on 21 June 2002.

1. DRP UNDERWRITING

The AMP Board has approved on Thursday a programme to underwrite
AMP's DRP for the next 18 months.

"This is an established capital management practice, utilised by
many Australian companies," Mr Mohl said.

"It will provide AMP with additional capital management
flexibility and reinforces the Company's financial strength."

An investment bank will be appointed to underwrite up to 100 per
cent take-up under the DRP. This means the underwriter will
place any shares not taken up by shareholders under the DRP.

The program will start with the current DRP (applying to the
dividend payable on 29 October 2002) and can be adjusted or
cancelled at any time.

2. ALLOCATION OF A$1 BILLION TO UKFS

On 21 June 2002 AMP announced that it would be increasing the
capital allocated to its UKFS business by approximately A$1
billion (331 million) in 2002.

The A$1 billion forms part of the resources of 500 million
announced on 20 September 2002, designed to support the Pearl
with-profits fund to FTSE levels of 3700. AMP yesterday detailed
its plans to further support the Pearl with-profits fund at FTSE
levels to 3000, without the need for additional capital
allocations.

"One of my key priorities right now is to ensure the market is
very clear about AMP's capital management initiatives and how
they work," Mr Mohl said.

The A$1 billion capital allocation announced in June 2002
involves a three stage process to ensure compliance with
regulatory requirements.

* Stage one involved the use of short-term debt to purchase A$1
billion (GBP331 million) of inadmissible assets from the Pearl
fund. This was completed in July 2002.

* AMP is currently undertaking stage two, which involves the
current issue of Reset Preferred Securities (RPS). The proceeds
of this issue will be lent to AMP (UK) Finance Services plc and
used in part to repay short-term debt. The balance will be held
as capital resources.

* Stage three will be completed by 31 December 2002. It involves
the re-transfer into Pearl of the previously inadmissible
assets. Once transferred, the UK Financial Services Authority
will recognize these assets as admissible. These assets will be
exchanged for equity in UKFS operating subsidiaries.

The balance of the 500 million capital allocation of 169 million
will come largely from the proceeds of the sale of Cogent. The
process by which this capital allocation will be made is yet to
be determined.

Mohl said: "I want our disclosure and our communications to be
clear, full and easily understood.

"The most important point is that AMP remains a well capitalized
Company in a strong financial position."

TCRAP reported Friday that shares in the Company have been
sinking to all time lows this week as the market reacted to
revelations the group had not revealed the full extent of the
financial troubles at its British operations.


ANACONDA NICKEL: Unveils Rights Issue and Underwriting Contract
---------------------------------------------------------------
Following thorough investigations into the availability of
acceptable finance, Anaconda Nickel Limited reached an agreement
for a renounceable rights offer, which will be fully
underwritten by Glencore International AG.

The renounceable rights issue will enable Murrin Murrin Holdings
Pty Limited (MMH) to pay its proportion of the cash settlement
agreed in principle to be paid to the Project's secured
creditors amounting to US$114 million, and will provide
sufficient working capital to the Anaconda group to meet
operating and capital requirements of the Murrin Murrin project.

As previously announced, the Murrin Murrin Joint Venture
participants have an agreement in-principle with the ad-hoc
committee representing a majority of the secured creditors for
an aggregate cash settlement of US$190 million.

Glencore International AG, the other joint-owner of the Murrin
Murrin project (through its wholly owned subsidiary Glenmurrin
Pty Ltd) and a 34 percent shareholder in Anaconda, will fully
underwrite the issue of 6.46 billion shares (representing 14 new
shares for every ordinary share in issue) at 5 cents per share,
to raise a total of A$323 million. The Anaconda Board has
unanimously agreed to the rights issue and to accept the
underwriting proposal. Glencore associated directors on the
Anaconda Board did not participate in the debate or vote on the
underwriting proposal. Glencore will not be paid an
underwriting fee in connection with the rights offer.

Proceeds from the issue will be used as follows:

APPLICATION/PURPOSE                           AMOUNT $A MILLIONS

Payment to MMH Secured Creditors                      207
Working Capital, Capital and operating costs           96
Transaction Costs for the whole restructure            20
TOTAL                                                 323

The rights issue and the underwriting agreement are contingent
upon completion of the agreement with the secured creditors to
the Project and FIRB approval. As previously announced, the
agreement with the secured creditors is conditional upon
acceptances by 50 percent in number and 75 percent in value of
MMH and Glencore Nickel Pty Limited secured creditors
separately, and schemes of arrangement being pursued which will
require approval from the West Australian Supreme Court.

The Chief Executive Officer of Anaconda, Mr Peter Johnston, said
the rights offer is an opportunity for Anaconda to reduce its
unsustainable debt burden. "This is a substantial capital
raising that will allow Anaconda to reduce its debt burden and
to provide sufficient funds to assist with consistent and
adequate performance from the Murrin Murrin project. The
underwriting agreement with Glencore brings certainty to both
this issue and the cash settlement with bondholders. This cash
settlement when finally approved by the secured creditors, along
with the additional capital allowed for by the rights offer,
would relieve Anaconda from a difficult financial position and
we believe both are in the best interests of shareholders,
employees and suppliers", he said.

All shareholders are encouraged to participate in the future of
Anaconda by taking up their full entitlements in the rights
issue which is expected to commence towards the end of December
2002 once Court and other approvals have been obtained.

For further information contact:

John Quayle, COMPANY SECRETARY                 +61 8 9212 8400
Tony Dawe, Ward Holt Corporate Communication   +61 8 9221 8722


ANSETT GROUP: Third Meeting of Creditors
----------------------------------------
The third meeting of Ansett Group's creditors was held at the
Melbourne Exhibition and Convention Centre, 2 Clarendon Street,
Southbank, Melbourne (Melways Reference Map 2F, B9), Wednesday
25th September 2002 at 11.00am.

The purpose of the meeting is for the creditors to consider the
Deed Administrators' third report concerning each Ansett
Company's business, property affairs and financial
circumstances.

A full set of relevant documents, including the Notice of
Meeting; the third report by the Deed Administrators; proxy
forms and a complete list of relevant Ansett Group companies,
will be available from the websites
www.ansett.com.au/administrator and www.abl.com.au/administrator
from Wednesday, 18th September 2002 and hard copies will be able
to be obtained by calling the creditors' hotline on 13 13 55.

For a copy of the disclosure, visit
http://bankrupt.com/misc/TCRAP_Ansettgroup0927.pdf

The status of Ansett Group of Companies
http://bankrupt.com/misc/TCRAP_Ansettgroup0927p2.pdf


COLES MYER: Posts Notice of New Substantial Shareholder
-------------------------------------------------------
The Myer Family Investments Pty Limited became a substantial
shareholder in Coles Myer Limited on September 25, 2002 with a
relevant interest in the issued share capital of 59,608,518
ordinary shares (5.03 percent).

According to TCRAP, Coles Myer Ltd is not in a hurry to split up
the ailing Melbourne-based Company, and will take as long as
necessary to come up with a winning formula.

A view is growing in the financial community that Chief
Executive Officer John Fletcher's key role at Coles Myer is to
demerge the retailer, but the belief was mistaken, the report
said.


COLES MYER: Expects to Achieve FY02 Forecast Profit
---------------------------------------------------
Ailing retailer Coles Myer Ltd, rocked by damaging boardroom
squabbles and ongoing uncertainty about its Myer Grace Bros
structure, will hit its forecast full year net profit of A$350
million (US$189.88 million) next week, PR Newswire reports.

Analysts believe a significant item or two, most likely in the
interest and tax area, will get Coles Myer over the line.

After downgrading its initial forecast for net profit for
2001/02 of A$400 million (US$217 million), Coles Myer warned the
market in August that it was likely to achieve the lower end of
its revised A$350 million (US$189.88 million)-A$365 million
(US$198.01 million) expectation.


LIFESTYLE GROUP: Former Director Found Guilty
---------------------------------------------
A former director and employee associated with the failed
Lifestyle group of companies have appeared in the Melbourne
County Court on charges brought by the Australian Securities and
Investments Commission (ASIC).

Jon Melville McKenney, a former managing director of the
Lifestyle property group, pleaded guilty on 4 March 2002 to 15
charges under the Corporations Act, including failure to act
honestly, making improper use of his position as a director of a
number of companies within the Lifestyle group, and making a
false or misleading statement in a document lodged with ASIC.

John Lloyd Caust, a former employee of the Lifestyle property
group, also pleaded guilty on 4 March 2002 to seven Corporations
Act charges, relating to improper and dishonest use of his
position as an employee of the companies.

The charges for both men relate to their roles in obtaining and
using approximately $5,442,970.72 from investors for property
development projects undertaken by the Lifestyle group. ASIC
following an investigation into the collapse of the Lifestyle
group in 2000 brought the charges.

ASIC successfully applied for the appointment of a liquidator to
54 companies within the Lifestyle group in July and August of
2000. Creditors are owed approximately $24 million.

Both men were bailed to appear in the Melbourne County Court on
14 October 2002 for sentencing.

The Commonwealth Director of Public Prosecutions is prosecuting
this matter.


QANTAS AIRWAYS: Using American Airlines' New Immigration Areas
--------------------------------------------------------------
Qantas recently announced that it would utilize American
Airlines' new immigration facilities within Terminal 4 at Los
Angeles International Airport.

Executive General Manager Sales and Marketing John Borghetti
said this would provide a faster immigration and passenger
clearance process for customers disembarking in Los Angeles and
an easier transfer for those taking American Airlines codeshare
flights to other US destinations.

"The move into Terminal 4 is part of a continued strengthening
of the relationship between Qantas and its partner American
Airlines," Borghetti said.

Phase One of the improvements will commence from October 7 with:

- arriving Qantas passengers utilizing immigration facilities
within Terminal 4 before they exit the airport;
- introduction of Premium Liaison Service for First Class
passengers and Platinum Frequent Flyers.

During Phase One, Tom Bradley International Terminal will
continue to be used for Qantas departures.

"Once the program of improvements is complete in September 2003,
additional Qantas services will arrive and depart from Terminal
4 and customers will have access to a new Admirals Club lounge
and Flagship lounge being developed in Terminal 4 by Qantas and
American Airlines," Borghetti said.

Qantas operates 28 services each week between Australia and New
Zealand and Los Angeles and is the only carrier on the route to
offer customers the luxury of sleeper beds in First Class.

Qantas offers code share services in North America with partners
American Airlines and Alaska Airlines to 20 destinations
including New York, Newark, Boston, Dallas Fort Worth, Denver,
Miami, Chicago, San Francisco, Washington, San Diego, Oakland,
Las Vegas, Phoenix, San Jose, Honolulu, Seattle, Portland,
Toronto, Vancouver and Calgary.

According to Wright Investors Service, at the end of 2002,
Qantas Airways Limited had negative working capital, as current
liabilities were A$5.58 billion while total current assets were
only A$3.76 billion.


============================
C H I N A & H O N G  K O N G
============================


ASAT HOLDINGS: S&P Cuts LT Rating to B, Outlook Negative
--------------------------------------------------------
Standard & Poor's Ratings Services said Thursday it had lowered
its long-term corporate credit rating on Hong Kong's ASAT
Holdings Ltd. (ASAT) to single-'B' from single-'B'-plus. The
outlook on the rating remains negative.

The rating incorporates little cushion for any further
deterioration in operating performance. Further deterioration in
ASAT's ability to get access to finance and improve its
liquidity could lead to a lower rating.

ASAT is an independent provider of advanced integrated circuit
packaging designs, assembly, and test services for the
semiconductor industry.

The rating action reflects Standard & Poor's concern that
despite improved operating results in recent quarters, ASAT
still continues to generate significant losses, and that the
timing of any recovery of the Company's credit measures to
levels appropriate for the previous rating is uncertain.
Expected pricing pressures across all industry segments could
hurt the Company's operating results.

Even though management has been successful in slowly rebuilding
ASAT's revenue base by reducing the Company's reliance on the
communications market, diversifying into the consumer and
personal computer sectors, and scaling back capital expenditure,
the Company's liquidity remains constrained.

ASAT's declining cash position and operational challenges facing
the Company make it extremely vulnerable to the pressures of its
cyclical and highly competitive end markets.

In the first quarter of fiscal 2003 (the quarter ended July
2002), the Company incurred a net loss of US$62.4 million, which
included a before tax US$59.2 million non-cash charge for the
write off of certain fixed assets, and a US$3.0 million non-cash
charge for the write off of specific inventories. The first
quarter net loss compares with a net loss of US$15.9 million in
the fourth quarter of fiscal 2002.

The Company's capacity utilization stood at 35 percent in the
quarter ended July 2002, up from a very weak 20 percent in the
previous quarter. ASAT's capital spending was reduced to only
US$19.6 million during fiscal 2002, from US$108.7 million in
fiscal 2001.

Although ASAT has no term debt maturing until 2006, the Company
's liquidity position is relatively tight. Its cash balance
declined to US$31.7 million at the end of quarter ended July
2002 from nearly US$80 million at the end of fiscal 2001. The
Company has limited access to finance and could face liquidity
problems if the semiconductor industry does not stage a
meaningful recovery within the next one to two years.


CENTRO DEVELOPMENTS: Hearing of Winding Up Petition Set
-------------------------------------------------------
The petition to wind up Centro Developments Limited was set for
hearing before the High Court of Hong Kong on November 6, 2002,
at 11:00 am.

Industrial and Commercial Bank of China (Asia) Limited formerly
known as Union Bank of Hong Kong Limited of ICBC Tower, 122-126
Queen's Road Central, Hong Kong, filed the petition with the
said court last August 22, 2002.


HONG KONG PROPERTIES: Widens Net Loss to HK$82.733M
---------------------------------------------------
Singapore Hong Kong Properties Investment Limited incurred a net
loss of HK$82.733 million versus a net loss of 31.215 million a
year ago, on the back of higher finance costs and increased
impairment losses for its property portfolio, AFX Asia reported
on Friday.

The Company's sales for the period dropped to HK$3.276 million
from 5.716 million.

The investment firm is planning to improve its capital base
through rights issues or placements after the High Court of Hong
Kong approves its petition for par value reduction.

The petition hearing is scheduled on November 19, 2002.

The report said the Company's first priority is to continue
consolidation of existing businesses, investments and its
property portfolio along with the restructure of bank loans.


STRONG PROGRESS: Faces Winding Up Petition on November 13
---------------------------------------------------------
The petition to wind up Strong Progress International Limited is
set for hearing before the High Court of Hong Kong on November
13, 2002 at 10:00 am.  The petition was filed with the court on
September 2, 2002.

The petition was filed on September 2, 2002 by Nanyang
Commercial Bank, Limited whose registered office is situate at
151 Des Voeux Road, Hong Kong.


NASHAN TRADING: Winding Up Petition Pending
-------------------------------------------
The petition to wind up Nanshan Trading (Hong Kong) Limited will
be scheduled 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 the Bank of China (Hong Kong) Limited whose
registered office is situate at 14th Floor, Bank of China Tower,
1 Garden Road, Central, Hong Kong.


STRONG PROFIT: Winding Up Hearing Set For November 6
----------------------------------------------------
The date for hearing of the petition to wind up Strong Profit
Limited is scheduled for November 6, 2002 at 11:00 am at the
High Court of Hong Kong.

Industrial and Commercial Bank of China (Asia) Limited formerly
known as Union Bank of Hong Kong Limited of ICBC Tower, 122-126
Queen's Road Central, Hong Kong, filed the petition on August
22, 2002.


WAI KEE: Winding Up Petition Slated For October 23
--------------------------------------------------
Wai Kee Works Limited is facing a winding up petition, which is
slated to be heard before the High Court of Hong Kong on October
23, 2002 at 9:30 am.

The petition was filed on July 1, 2002 by Choi Dik Sang of Room
1802, Ching Wai House, Cheung Ching Estate, Tsing Yi, New
Territories, Hong Kong.


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


MARUBENI CORPORATION: Barito Files Petition in Court
----------------------------------------------------
PT Barito Pacific Timber filed a petition in the Central Jakarta
District Court against Marubeni Corporation and creditors after
creditors failed to recognize Barito's stake in PT Tanjung Enim
Lestari declined to 40 percent after it wasn't able to inject
additional capital, thus failing to approve the dilution of
Barito's stake in pulp production subsidiary Tanjung, the AFX-
Asia News reported.

When construction of the Tanjung plant began in 1997,
shareholders were required to deposit a total of US$150 million
in cost-of-run support (COS) and cash deficiency support (CDS).

Barito investor relations manager Aris Winantyo said Barito paid
in a total of US$114.16 million for COS and CDS. He said that
during the financial crisis of mid-1997, Tanjung Enim
shareholders agreed to increase their equity participation.

Barito, however, failed to inject additional capital and so its
ownership was diluted to 40 percent.

Winantyo said the implication of the ownership dilution is that
Barito's share of the cash support requirement must also be
reduced accordingly and "we want the excess COS and CDS paid to
Tanjung Enim to be reimbursed."

He said Marubeni and Tanjung Enim creditors have yet to sign
documentation recognizing the dilution of Barito's stake from
57.08 percent to 40 percent, even though Marubeni's stake has
increased.

Winantyo could not confirm the exact size of Marubeni's share in
Tanjung Enim. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No.
192, September 27, 2002)


MATSUSHITA ELECTRIC: Consolidation of CRT Business With Toshiba
---------------------------------------------------------------
Matsushita Electric Industrial Co., Ltd. and Toshiba Corporation
has agreed to consolidate their cathode ray tube (CRT) business
into a single joint venture Company. Plans call for setting a
Company in January 2003 to work on incorporating the new joint
venture Company at earliest possible date within their current
fiscal year ending March 31, 2003. The joint venture will be
headquartered in Osaka, with 60 percent owned by Matsushita and
40 percent by Toshiba.

The business integration will involve product development,
manufacturing, and sales operations, making the new Company the
world's third largest CRT Company, based on the two companies'
combined sales turnover in the fiscal year ended March 31, 2002.
The new Company, whose name is yet to be decided, will have some
16,000 employees worldwide. Its sales projection is
approximately 270 billion yen for the fiscal year ending March
2003.

Despite intense competition from other display devices such as
LCDs and PDPs, the global CRT market for TV use is still
expected to grow by 2 to 3 percent annually on a quantity basis,
due to CRT displays' technical advantages in such areas as
brightness, color reproducibility, and cost-performance,
especially for digital and high resolution TVs.

By making optimum use of the synergies and efficiency
enhancement expected from unification, the new Company aims to
withstand the competition and assume a leading position in the
global CRT market.

The popularization of digital broadcasting will heighten the
necessity to improve the image quality of display devices. The
joint venture will differentiate itself through its cutting edge
technology, providing high-quality images through the
integration of the two companies' technologies. These include
Matsushita's Super Slot Tension mask technology, which helps
form uniformly high-quality images and is ideal for large-sized
flat screen picture tubes for digital TV receivers, and
Toshiba's Microfilter technology, which increases the brightness
and contrast of the CRT.

The joint venture also brings together the product development
capabilities and manufacturing technologies of Matsushita and
Toshiba. It will boost its competitiveness in the global CRT
market by sharing and standardizing design methods and
manufacturing processes.

Matsushita and Toshiba plan to integrate their CRT business
operations, including research and development, manufacturing,
and sales. The integration will cover both companies'
manufacturing operations worldwide, except for those in Japan
where the parent companies will continue to run their respective
factories. They include Matsushita's factories in China, the
United States, Germany, and Malaysia, and Toshiba's factories in
the United States, Thailand, and Indonesia. The new Company will
also take over as its wholly owned subsidiary MT Display
Procurement Co., Ltd., a joint procurement Company established
with equal ownership by the two parent companies on April 15,
2002.

Media Contacts:

Matsushita Electric Industrial Co., Ltd.
Yasuhiro Fukagawa, Corp. Comm. Div.
Tel: +81-3-3578-1237, Fax: +81-3-5472-7608

Toshiba Corporation
Kenichi Sugiyama, Int'l Media Relations
Tel: +81-3-3457-2105, Fax: +81-3-5444-9202


MATSUSHITA ELECTRIC: Unveils Organizational Restructuring
---------------------------------------------------------
Matsushita Electric Industrial Co., Ltd. has determined basic
terms of business divisions/combinations to be implemented
between MEI and two of its subsidiaries, Matsushita
Communication Industrial Co., Ltd. (MCI) and Kyushu Matsushita
Electric Co., Ltd. (KME), both of which will become wholly-owned
subsidiaries through share exchanges on October 1, 2002. The
memoranda of understanding (MOU) setting forth such terms were
entered into today between MEI and each of MCI and KME. The
purpose of these business divisions/combinations is to
facilitate the groupwide business and organizational
restructuring of MEI and its subsidiaries as announced on April
26, 2002 (see MEI's April 26, 2002 press release "Matsushita
Announces Groupwide Business and Organizational Restructuring").

The basic terms of the business divisions/combinations agreed
upon today are outlined as follows:

1.Division of MEI's communications equipment sales functions,
and transfer of such to MCI

Purpose of business division

As announced on April 26, 2002 in the above-mentioned press
release "Matsushita Announces Groupwide Business and
Organizational Restructuring," MCI will be reorganized under a
new name "Panasonic Mobile Communications Co., Ltd." (PMC),
effective January 1, 2003. As part of this reorganization, MCI
will absorb the communication equipment sales unit to be divided
from MEI's Corporate Information & Communications Sales Division
in order to position PMC as a fully integrated mobile
communications Company.

Outline of business division

A. Schedule
September 26, 2002     Signing of memorandum of understanding

Late October, 2002 (planned) Board resolutions to approve
business division

Late October, 2002 (planned)  Signing of business division
agreement

January 1, 2003 (planned)  Date of business division and
transfer

January 6, 2003 (planned)  Date of commercial registration

B. Method of business division and allotment of shares
MEI will divide a certain part of its business and MCI will
succeed the divided business in exchange for an allotment of 1
share of common stock of MCI. Preceding this business division
and transfer, MCI (the succeeding Company) is scheduled to
become a wholly owned subsidiary of MEI on October 1, 2002.
Accordingly, the structure of this business division is adopted
to maintain MCI as a wholly owned subsidiary of MEI, in which
MCI will allot 1 share of its common stock to MEI (the Company
dividing a business unit) upon the division and transfer.

C. Rights and obligations to be succeeded
Assets, liabilities, rights and obligations involved in the
business to be transferred
from MEI to MCI, which are considered to be mandatory for MCI
(the succeeding Company) to operate the business to be
succeeded.

D. Cash Distribution Upon Business Division
There will be no cash distribution in relation to the business
division.

E.Prospects of paying debt obligations
MEI believes that both MEI and MCI can pay the debt obligations
to be incurred as a result of this transaction.

F.New directors and corporate auditors of succeeding Company
To be determined.

Basic information for MEI and MCI (non-consolidated basis) (as
of March 31, 2002)

Matsushita Electric Industrial Co., Ltd.  (Company to divide a
unit)

Principal Lines of Business  Manufacture and sale of electronic
and electric equipment
Date of Incorporation        December 15, 1935
Principal Office             Kadoma-shi, Osaka, Japan
Representative               Kunio Nakamura, President
Capital Stock(million yen)   258,737
Shares Issued                2,138,514,603
Shareholders' Equity         2,553,374 (million yen)

Total Assets                 4,565,972 (million yen)
Financial Closing Date       March 31
No. of Employees             49,513

Major Customers
Consumer products - widely distributed to general public through
consumer and household equipment sales networks. Business and
industrial equipment and components-- sold mainly to
corporations, government agencies and manufacturers through
systems and industrial sales networks.

Major Shareholders and Shareholdings

      Sumitomo Mitsui Banking       4.56 percent
      Japan Trustee Services Bank   4.52 percent
      (Trust account)
      Moxley & Co.                  4.45 percent
      Sumitomo Life Insurance       3.58 percent
      Mitsubishi Trust and Banking  3.16 percent
      (Trust account)
Major Banks      Sumitomo Mitsui Banking, The Asahi Bank, etc.

Matsushita Communication Industrial Co., Ltd.  (succeeding
Company) Principal Lines of Business  Manufacture and sale of
information/communication, measuring/control, audio/video,
office, medical, precision and other electronic equipment.

Date of Incorporation        May 31, 1944
Principal Office             Kohoku-ku, Yokohama, Japan
Representative               Yasuo Katsura, President
Capital Stock(million yen)   22,856
Shares Issued                188,149,981
Shareholders' Equity         322,972 (million yen)
Total Assets                 517,292 (million yen)
Financial Closing Date       March 31
No. of Employees             7,309
Major Customers              MEI

Major Shareholdersand Shareholdings
      MEI                          56.33 percent
      Japan Trustee Services Bank   3.23 percent
      (Trust account)
      UFJ Trust Bank                1.88 percent
      (Trust account A)
      Mitsubishi Trust and Banking  1.67 percent
      (Trust account)
      Bank of New York for          1.11 percent
      Goldman Sachs International
Major Banks      Sumitomo Mitsui Banking, The Asahi Bank, etc.

Financial results for the most recent three fiscal years (non-
consolidated basis) (in millions of yen, except per share
amounts) Matsushita Electric Industrial Co., Ltd.(Company to
divide a unit)

Fiscal Year ended         2000/3          2001/3         2002/3
Net Sales              4,553,223       4,831,866      3,900,790
Operating Profit          75,228          76,634       (92,952)
   (Loss)
Recurring Profit         113,536         115,494       (42,480)
   (Loss)
Net Income(Loss)          42,349          63,687      (132,410)
Net Income (Loss)          20.53           30.63        (63.79)
   per Share (in yen)
Annual Dividends per       12.50           12.50          10.00
   Share (in yen)
Shareholders' Equity    1,248.31        1,306.37       1,225.39
   per Share(in yen)

Matsushita Communication Industrial Co., Ltd. (succeeding
Company)

Fiscal Year ended         2000/3          2001/3         2002/3
Net Sales                693,123          817,844        562,417
Operating Profit          56,255          51,241        (57,309)
   (Loss)
Recurring Profit          58,373          52,285        (50,614)
   (Loss)
Net Income(Loss)          35,086          32,298        (46,630)
Net Income (Loss)         186.48          171.66        (247.84)
   per Share (in yen)
Annual Dividends per       25.00           25.00           20.00
   Share (in yen)
Shareholders' Equity    1,837.60        1,988.43        1,716.59
   per Share(in yen)

Description of the business to be divided

A. Business to be divided

The communications equipment sales unit of MEI's Corporate
Information & Communications Sales Division.

B. Operating results of the business to be divided for the year
ended March 31, 2002

Net Sales Approximately 310 billion yen

C. Assets and liabilities to be divided from MEI

To be determined.

Business status of MEI after the business division and transfer

There will be no significant changes in MEI's fundamental
corporate status, including trade name, principal office, and
representative.

2. Division of MCI's automotive electronics and systems
solutions businesses for transfer to MEI.

Purpose of business division
As announced on April 26, 2002 (see previously-mentioned press
release "Matsushita Announces Group wide Business and
Organizational Restructuring"), MEI will establish a new
internal divisional Company "Panasonic Automotive Systems
Company," which will be responsible for the entire Matsushita
Group's car electronics business, and another internal
divisional Company "Panasonic System Solutions Company," to be
responsible for the Group's systems solutions business. Also,
MEI will establish a new internal divisional Company "Healthcare
Business Company," which will be responsible for healthcare
systems business. To implement these reorganizations, MCI will
divide the car electronics business currently operated by its
Automotive Multimedia Company and related divisions, and the
systems solutions businesses run by its Systems Solutions
Company and related divisions, and transfer them to MEI.

Outline of business division

A. Schedule
September 26, 2002            Signing of memorandum of
understanding
Late October, 2002 (planned)  Board resolutions to approve
business division
Late October, 2002 (planned)  Signing of business division
agreement
January 1, 2003 (planned)     Date of business division and
transfer
January 6, 2003 (planned)     Date of commercial registration

B. Method of business division and allotment of shares
MCI will divide relevant businesses and MEI will succeed the
divided businesses. MCI (the Company dividing business units) is
scheduled to become a wholly owned subsidiary of MEI on October
1, 2002, which will precede the business division and transfer.
Accordingly, MEI (the succeeding Company) will not issue shares
of its common stock to MCI upon the division and transfer.

C. Rights and obligations to be succeeded
Assets, liabilities, rights and obligations involved in the
businesses to be transferred from MCI to MEI, which are
considered to be mandatory for MEI to operate such businesses.

D. Cash Distribution Upon Business Division
There will be no cash distribution in relation to the division.

E. Prospects of paying debt obligations
MEI believes that both MEI and MCI can pay the debt obligations
to be incurred as a result of this business division.

F. New directors and corporate auditors of succeeding Company
None.

Basic information for MEI and MCI
- See "Basic information for MEI and MCI" (please note that "the
Company dividing a unit" and "the succeeding Company" are
reversed in this case).

Financial results for the most recent three fiscal years
- See "Financial results for the most recent three fiscal years"
(please note that "the Company dividing a unit" and "the
succeeding Company" are reversed in this case).

Description of the business to be divided

A. Businesses to be divided
The automotive electronics business operated by MCI's Automotive
Multimedia Company and related divisions, as well as systems
solutions businesses run by MCI's Systems Solutions Company and
related divisions.

B. Operating results of the businesses to be divided for the
most recent fiscal year
Net Sales Approximately 255 billion yen

C. Assets and liabilities to be divided from MCI
To be determined.

Business status of MEI after the business division and transfer

There will be no significant changes in MEI's fundamental
corporate status as the succeeding Company, including trade
name, principal office, and representative.

3. Joint business division in the manufacturing systems area
between MEI and KME

Purpose of business division

As announced on April 26, 2002 (see the aforementioned press
release "Matsushita Announces Groupwide Business and
Organizational Restructuring"), "Panasonic Factory Solutions
Co., Ltd." (PFSC) will be established by combining manufacturing
systems businesses of both MEI and KME. In forming PFSC, MEI
will divide the relevant business currently operated by its FA
Company, an internal divisional Company. Also, KME, which will
become a wholly-owned subsidiary of MEI through a share exchange
on October 1, 2002, will divide the related business currently
run by its FA Division, for transfer into the new Company.

Outline of business division

A. Schedule

September 26, 2002            Signing of memorandum of
understanding
Late October, 2002 (planned)  Board resolutions to approve
business division
January 1, 2003 (planned)     Date of business division and
transfer
January 6, 2003 (planned)     Date of commercial registration

B. Method of business division and allotment of shares
To establish PFSC as a wholly-owned subsidiary of MEI, the new
Company (PFSC) will allot one (1) share of its common stock to
MEI (the Company dividing a business unit) upon its succession
of the manufacturing systems business currently operated by
MEI's FA Company. At the same time, PFSC will allot another one
(1) share to MEI as the shareholder of KME (also dividing a
business unit) upon succession by the new Company of the
manufacturing systems business currently run by KME's FA
Division.

C. Rights and obligations to be succeeded
Assets, liabilities, rights and obligations involved in the
businesses to be transferred from MEI and KME, which are
considered to be mandatory for the new Company to operate the
business to be succeeded.

D. Cash Distribution Upon Business Division
There will be no cash distribution in relation to the division.

E. Prospects of paying debt obligations
MEI believes that each of MEI, KME and the new Company can pay
the debt obligations to be incurred as a result of this business
division.

F. New directors and corporate auditors of succeeding Company to
be determined.

Basic information for and KME (non-consolidated basis)
      (as of March 31, 2002)

Matsushita Electric Industrial Co., Ltd.  (Company to divide a
unit)

Principal Lines of Business  Manufacture and sale of electronic
and electric equipment
Date of Incorporation        December 15, 1935
Principal Office             Kadoma-shi, Osaka, Japan
Representative               Kunio Nakamura, President
Capital Stock(million yen)  258,737
Shares Issued                2,138,514,603
Shareholders' Equity         2,553,374
(million yen)
Total Assets                 4,565,972
(million yen)
Financial Closing Date       March 31
No. of Employees             49,513

Major Customers

Consumer products - widely distributed to general public through
consumer and household equipment sales networks. Business and
industrial equipment and components-- sold mainly to
corporations, government agencies and manufacturers through
systems and industrial sales networks.

Major Shareholders and Shareholdings

      Sumitomo Mitsui Banking       4.56 percent
      Japan Trustee Services Bank   4.52 percent
      (Trust account)
      Moxley & Co.                  4.45 percent
      Sumitomo Life Insurance       3.58 percent
      Mitsubishi Trust and Banking  3.16 percent
      (Trust account)

Major Banks      Sumitomo Mitsui Banking, The Asahi Bank, etc.
Kyushu Matsushita Electric Co., Ltd.  (Company to divide a unit)

Principal Lines of Business

Manufacture and sale of information, office automation and
industrial equipment, and electric components.

Date of Incorporation        April 10, 1951
Principal Office             Hakata-ku, Fukuoka, Japan
Representative               Hajime Sakai, President
Capital Stock(million yen)  29,845
Shares Issued                175,140,847
Shareholders' Equity         156,735
(million yen)
Total Assets                 231,295
(million yen)
Financial Closing Date       March 31
No. of Employees             5,610
Major Customers              MEI

Major Shareholders and Shareholdings
      MEI                          51.52 percent
      Sumitomo Mitsui Banking       3.23 percent
      Kyushu Matsushita Electric    2.40 percent
      Employee Shareholders'
      Association
      Japan Trustee Services Bank   2.37 percent
      (Trust account)
      Mitsubishi Trust and Banking  2.18 percent
      (Trust account)

Major Banks      Sumitomo Mitsui Banking, The Asahi Bank, etc.

Financial results for the most recent three fiscal years (non-
consolidated basis) (in millions of yen, except per share
amounts) Matsushita Electric Industrial Co., Ltd.(Company to
divide a unit)

Fiscal Year ended         2000/3          2001/3         2002/3
Net Sales              4,553,223       4,831,866      3,900,790
Operating Profit          75,228          76,634       (92,952)
   (Loss)
Recurring Profit         113,536         115,494       (42,480)
   (Loss)
Net Income(Loss)          42,349          63,687      (132,410)
Net Income (Loss)          20.53           30.63        (63.79)
   per Share (in yen)
Annual Dividends per       12.50           12.50          10.00
   Share (in yen)
Shareholders' Equity    1,248.31        1,306.37       1,225.39
   per Share(in yen)

Kyushu Matsushita Electric Co., Ltd.(Company to divide a unit)

Fiscal Year ended         2000/3          2001/3         2002/3
Net Sales                313,823         330,883        298,902
Operating Profit           5,063           7,686          3,404
   (Loss)
Recurring Profit           5,206           7,022          2,915
   (Loss)
Net Income(Loss)          (4,041)          3,513         (2,628)
Net Income (Loss)         (22.92)          19.92         (14.95)
   per Share (in yen)
Annual Dividends per       10.00           10.00          10.00
   Share (in yen)
Shareholders' Equity      915.20          920.51         895.08
   per Share(in yen)

Description of the business to be divided by MEI

A. Business to be transferred
The manufacturing systems business of the FA Company.

B. Operating results of the business to be divided for the most
recent fiscal year
Net Sales: Approximately 85 billion yen

C. Assets and liabilities to be divided
To be determined.

Business status of MEI after the business division and transfer

There will be no significant changes in MEI's fundamental
corporate status, including trade name, principal office, and
representative.

Information about the newly established Company

A.  Trade name:       Panasonic Factory Solutions Co., Ltd.

B.  Principal lines:  Development, manufacturing and sales
related to circuit of business manufacturing, parts mounting and
other manufacturing systems, and related service and
engineering.

C.  Principal office: Minato-ku, Tokyo, Japan
D.  Representative:   To be determined
E.  Capital stock:    To be determined
F.  Total assets:     To be determined
G.  Financial closing
     date:             March 31

Effect of the business divisions on MEI's financial results

The business divisions referred to in 1, 2 and 3 will have no
immediate material effect on MEI's consolidated financial
results. Toward the future, it is expected that the business
divisions will increase management efficiency, thus leading to
the possible contribution to operational performance
improvements of the entire Matsushita Group.

Matsushita Communication Industrial Co., Ltd. is a principal
subsidiary of Matsushita Electric Industrial Co., Ltd., and
specializes in four business areas: mobile communications,
automotive multimedia, AV and security, and system solutions.

For further information, please visit the Matsushita
Communication Industrial Co. home page at:
www.mci.panasonic.co.jp/english

Matsushita Electric Industrial Co., Ltd. is 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.

For further information, please visit the Matsushita Electric
Industrial Co., Ltd. home page at:
www.panasonic.co.jp/global/top.html

Kyushu Matsushita Electric Co Ltd. operates through the
following divisions; Manufacture & Sale of
Telecommunications/Office Equipment/Industrial Equipment
(telephone answering machines, cordless phones, integrated
telephone systems, personal handyphone related equipment,
private branch exchanges, facsimile machines, portable
navigation systems, dot matrix & laser printers, desktop
publishing systems, scanners, drives, device assembling
equipment, vacuum application equipment, water supply equipment,
water purifiers, water processors, electric pencil sharpeners,
handheld vacuum cleaners); Manufacture & Sale of Electronic
Components ( deflection yokes, optical pick ups, magnetic card
readers/writers, IC card readers, IC lead frames, servomotors,
cooling fans, communication & circuit devices).

For further information, please visit the Kyushu Matsushita
Electric Co Ltd. home page at: www.kme.panasonic.co.jp/


MAZDA MOTOR: R&I Assigns BBB- Rating
------------------------------------
Rating and Investment Information, Inc. (R&I) has assigned Mazda
Motor Corp.'s long-term debt rating to BBB-.

ISSUE: Bonds Rated Issue Date Redemption Issue Amount (mn)
Unsec. Conv. Bonds No. 4 Oct 07, 2002 Sep 28, 2007 Yen 60,000
(with negative pledge limited to the firm's other convertible
bonds)

RATIONALE:

Mazda Motor Corp. is an automaker in which Ford Motor Co. has a
33.4 percent stake. Mazda is responsible for the development of
middle-scale engines and platforms of mid-range passenger cars
for the Ford group. The earnings structure has improved thanks
to far-reaching structural reforms implemented consistently over
several years, including the sale of non-core subsidiaries and
affiliated companies, an early retirement scheme, and the
closure of the No. 2 Ujina Plant at the main Hiroshima site.

Nevertheless, even though the Company has practically no
involvement in sales financing, the shareholders capital ratio
is low, at 9.96 percent, as a result of poor performances in
the past and the fragile management condition of domestic
dealerships and other factors.

There also is still a heavy interest bearing debt burden.
Furthermore, the overseas sales ratio is at a high level of 61.3
percent, mainly for the North American and European markets, but
production bases are concentrated in Japan so earnings are
vulnerable to movements in exchange rates. Mazda is aiming to
reduce this exposure by standardizing platforms and using the
overseas production bases of Ford, as well as further cutting
costs to boost cost competitiveness. There was an 18- month
moratorium on new model launches, but since the start of the
March 2003 term a series of new models, including the "Atenza"
and "New Demio," have been launched.

It will be necessary to monitor whether these models are able to
maintain a certain level of sales despite the stiff competition,
and whether they contribute to greater earnings stability.


MITSUBISHI MOTORS: R&I Places on Rating Monitor
-----------------------------------------------
Rating and Investment Information, Inc. (R&I), has placed
Mitsubishi Motors Corp. ratings on the rating monitor scheme:

Senior Long-term Credit Rating: (BB+)

ISSUE: Bonds Rated Issue Date Redemption Issue Amount (mn)
Unsec. Conv. Bonds No. 1 Feb 13, 1996 Mar 31, 2003 Yen 100,000
Unsec. Str. Bonds No. 3 Dec 12, 1996 Dec 12, 2003 Yen 30,000
Unsec. Str. Bonds No. 5 May 28, 1997 May 28, 2009 Yen 30,000
Unsec. Str. Bonds No. 6 May 28, 1997 May 28, 2007 Yen 10,000
Unsec. Str. Bonds No. 7 May 28, 1997 May 28, 2004 Yen 20,000

ISSUE: Domestic Commercial Paper Program
Issue Limit: 250,000 million yen

RATIONALE:

Mitsubishi Motors Corp. (MMC) announced on September 20 that it
is splitting off its truck and bus operations into a new
Company, Mitsubishi Fuso Truck and Bus Corporation (MFTBC). The
new Company will be launched as a 100 percent subsidiary of MMC
in January 2003, but this holding will fall to 42 percent during
the spring as Daimler-Chrysler will purchase a 43 percent stake
and va rious Mitsubishi group firms such as Mitsubishi Corp.,
Mitsubishi Heavy Industries, Ltd., and The Bank of Tokyo-
Mitsubishi, Ltd., will acquire 15 percent collectively.

R&I expects that splitting off the truck and bus operations will
have a major impact on MMC's financial structure and cash flow
structure, and is therefore placing the ratings on the Rating
Monitor scheme. New ratings will be announced after an
investigation off actors such as the distribution of liabilities
after the split, the financial condition of the rated Company,
and its future earnings potential.


NITTESU MINING: R&I Downgrades Rating to BBB
--------------------------------------------
Rating and Investment Information, Inc. (R&I) downgraded the
following ratings of Nittesu Mining Co., Ltd. as follows:

Senior Long-term Credit Rating: BBB (Downgraded from BBB+)
ISSUE: Bonds Rated Issue Date Redemption Issue Amount (mn)
Unsec. Conv. Bonds No. 2 Jul 22, 1996 Sep 30, 2005 Yen 10,000
R&I RATING: BBB (Downgraded from BBB+)

Demand for limestone, Nittetsu Mining's mainstay product, is
falling and prices are dropping, so the Company's earnings
potential is declining. There is little prospect of any major
recovery in demand in the future since the major demand sources
are the steel making and cement sectors, so this operation's
performance is certain to stagnate. Although the Company is
cutting personnel and other costs, it appears unlikely that this
will be sufficient to compensate for the decline in profit.

Nittetsu has been investing heavily in its second mainstay of
business, copper mining, but there have been continuous
difficulties at a smelting works in Australia in which the
Company has a 20 percent stake, and this has been a drag on
consolidated performance in the form of holding-Company losses.
Nittetsu has been providing additional funding in line with its
responsibility as a shareholder, but there are now concerns that
the accumulated investment of 9.5 billion yen may be lost. Asset
efficiency has been damaged because of the failure of this
investment to generate returns, and interest-bearing debt has
risen to a high level.

Even so, R&I judges that financial composition is still
favorable in view of the accumulation of past earnings and the
Company's substantial latent profits on land and securities
holdings.

Regarding the Atacama copper mine in Chile, favorable progress
is being made toward the slated opening at the end of the fiscal
year. It is unclear how long it will be before copper production
actually begins, but shrinking the development period and using
old equipment have reduced development costs, and the lowering
of the break-even point has reduced risks.


NTT DOCOMO: Sees H102 Loss of Y500B
-----------------------------------
NTT DoCoMo Inc., a unit of Nippon Telegraph and Telephone Co.,
expects a loss of 500 billion yen (around $4.1 billion) for the
fiscal half year ending September 30, as a result of losses from
its oversees investments, Nihon Keizai Shimbun and Reuters
reported.

The Company anticipated the loss as values of its shareholdings
in AT&T Wireless Services Inc. (AWE), Hutchison 3G UK Ltd., and
KPN Mobile NV of the Netherlands have plunged.

NTT DoCoMo, which own 16 percent of AT&T Wireless Services, is
to write-off estimated loss on its holdings of the US carrier as
the share price of the US partner has fallen some one fifth
since NTT DoCoMo's acquisition.

Separately, NTT DoCoMo owns 20 percent of Hutchison 3G UK, and
15 percent of KPN Mobile.


=================
I N D O N E S I A
=================


BANK NIAGA: DPR Allows Government to Make Stake Sale Decision
-------------------------------------------------------------
The Lower House of Parliament (DPR) Commission IX head Max Moein
said the parliament will allow the government to agree a price
for selling its 51 percent stake in PT Bank Niaga to Malaysia's
Commerce Asset-Holding Bhd (CAHB).

The DPR had previously urged the government to ask Commerce to
raise its bid price for the stake from IDR26.5 to IDR30 per
share.

Commerce refused the government demand, saying its offer was
final. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 192,
September 27, 2002)


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


HANVIT LEASING: Creditors Seeking Debt-Equity Swap
--------------------------------------------------
Creditors of Hanvit Leasing Co. are seeking a debt-for-equity
swap deal worth 209 billion won before the end of September, the
Korea Herald reported Friday.

The creditors are also planning to sell part of their stake
holding in the leasing Company to Lone Star Fund.

Woori Bank and other creditors extended loans worth 1.244
trillion won to the leasing Company.

Woori Bank holds 63 percent stake in the Company.


HYNIX SEMICON: Responds to KSE Queries
--------------------------------------
Hynix Semiconductor Inc. responded to Korea Stock Exchange
(KSE)'s request for information with reference to the sale of
its TFT LCD business as follows:

Hynix Semiconductor Inc. (Hynix) recently signed a memorandum of
agreement (MOU) with a Chinese optical-electronics maker, BOE
Technology Group Co., Ltd. (BOE) for the sale of its TFT LCD
business (Hydis).

The agreed price by the parties is US$380 million for the
transfer of the total assets of the TFT LCD business of Hydis,
including fixed assets, factory building and related structures,
intangible assets, assets of overseas subsidiaries and
sales/distribution network of the Company.

However, this amount can be adjusted after the due diligence for
the value of the assets.


HYNIX SEMICONDUCTOR: Micron Gets Tired of Renegotiations
--------------------------------------------------------
U.S.-based Micron Technology has been concentrating on building
up its own financial status, rather than taking over another
DRAM producer, the Digital Chosun reported, citing Steve
Appleton, chair and CEO of Micron.

The Micron CEO spearheaded negotiations with Hynix Semiconductor
to purchase the Korean firm, but the negotiations broke down
after Hynix's board of directors vetoed the sale.

After the failed bid to sell off the struggling chipmaker,
creditors have continued to press ahead with their position,
opting for the sale amid heated opposition from the firm's
management and labor.

Appleton commented that if the aborted deal resurfaces, the
negotiations would have to start at the drawing board, as the
conditions for acquisition have changed drastically. He also
said that he has not received any offer to renegotiate the deal
from Hynix. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No.
192, September 27, 2002)


HYNIX SEMICONDUCTOR: HMM Disposes 0.865% Stake in Chipmaker
-----------------------------------------------------------
Hyundai Merchant Marine Co Ltd has decided to sell its entire
0.865 percent stake or 45.4 million shares in Hynix
Semiconductor Inc on the market from September 27 to December 31
in a bid to secure liquidity and repay debt, AFX Asia reports.

The Hynix shares to be sold are valued at 226.8 billion won
based on a par value of 5,000 won per share.

Hyundai Merchant bought the Hynix shares at 12,600 won per unit
on average.


HYUNDAI HEAVY: Suffers Major Losses in Stock Value
--------------------------------------------------
Hyundai Heavy Industries and Doosan Groups saw their market
capitalization plunge the most among the 20 largest affiliates
of chaebols listed on the Stock Exchange, the Korea Stock
Exchange (KSE) said Friday.

KSE said the market capitalization of Hyundai Heavy Industries
Group fell 49 percent from 2.68 trillion won (US$2.2 billion) to
1.33 trillion won during the period April 18 until September 25.
Doosan Group dropped 48 per cent to 973.3 billion won from two
trillion won during the same period.


HYUNDAI MERCHANT: Will Pay Back US$253M Outstanding Loans to KDB
----------------------------------------------------------------
Hyundai Merchant Marine (HMM) will pay back outstanding loans of
310 billion won (US$253 million) in total to the Korea
Development Bank (KDB) in October, PR Newswire reports.

In June 2000, KDB extended a total of 490 billion won to the
Hyundai affiliate - 400 billion won in overdraft facilities and
90 billion won in loans. HMM has repaid 170 billion won and 10
billion won respectively.

HMM is planning to repay the outstanding loans when it receives
proceeds from the sale of auto-shipping vessels worth 1.8
trillion won (US$1.47 billion) at the end of next month.


SEOUL BANK: Hana Signs Final Contract to Acquire Bank
-----------------------------------------------------
Hana Bank and Korea Deposit Insurance Corporation (KDIC) signed
a final contract on September 27 to acquire Seoul Bank, Korea
Herald reports.

KDIC will hold an operating committee meeting Friday, which will
approve the sale of its stake in the lender, while Hana Bank and
Seoul Bank each will hold shareholders' meetings Friday to
approve the transfer of shares between them.

Earlier this month, Hana Bank agreed to acquire Seoul Bank,
which has been on the selling block since 1999.

In October, the two lenders will also hold shareholders'
meetings to get approval of the banking consolidation.

DebtTraders reports that Seoulbank's 3.791 percent floating rate
note due in 2006 (BKSE06KRN1) trades between 97 and 99. For
real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=BKSE06KRN1


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


AMSTEEL CORPORATION: Proposes Reorganization of Unit
----------------------------------------------------
Pursuant to the orders of the High Court of Malaysia,
Silverstone, a subsidiary Company of Amsteel Corporation Berhad,
had on 4 September 2002 served a notice to its shareholders to
convene meetings for the purpose of considering and approving
the scheme of arrangement between Silverstone and its
shareholders involving the proposed acquisition by Angkasa
Marketing Berhad (AMB) of 100 percent equity interest in
Silverstone from the shareholders of Silverstone comprising:

i) ACB, Umatrac Enterprises Sdn Bhd, Posim Berhad, Lion
Corporation Berhad (LCB), Limpahjaya Sdn Bhd, Datuk Cheng Yong
Kim (DAC) and parties deemed connected to Tan Sri William H.J.
Cheng and DAC (collectively referred to as the Relevant
Shareholders); and

ii) all other minority shareholders of Silverstone (Minority
Shareholders) referred to hereafter as the Proposed Silverstone
Scheme.

In this regard, the Directors of ACB announced that the scheme
meetings for the Proposed Silverstone Scheme with the categories
of shareholders as particularised in Table I were held earlier
today and the voting results are set out in Table I below.

The resolution pertaining to the Proposed Silverstone Scheme as
set out in Silverstone's Circular to shareholders dated 4
September 2002 was passed by the requisite majority at the
Extraordinary General Meeting (EGM) of Silverstone held on
Thursday.

Following the conclusion of the aforesaid scheme meetings and
the EGM, the Proposed Silverstone Scheme remains subject to,
inter alia, the following conditions precedent:

i) the approval of the shareholders of AMB;

ii) the Proposed Silverstone Scheme being sanctioned by the High
Court pursuant to Section 176 of the Companies Act, 1965; and

iii) the proposed corporate and debt restructuring exercises of
LCB, Lion Land Berhad, Amsteel Corporation Berhad and AMB group
of companies as first announced on 5 July 2000, and subsequently
revised vide the announcements dated 11 September 2000, 19
October 2000, 8 October 2001 and 26 March 2002, being
unconditional.

Shareholders of Silverstone Votes in Favor:

Relevant Shareholders Scheme Meeting 100 percent
Minority Shareholders Scheme Meeting 98.84 percent in number and
99.21 percent in value


BERJAYA LAND: Proposes Convertible Loan Stocks
----------------------------------------------
Commerce International Merchant Bankers Berhad (CIMB) announced
that an application in relation to the Berjaya Land Berhad (B-
Land) proposals dated 11 July 2002 would be submitted to the
Securities Commission (SC) within three (3) months from 11 July
2002.

Due to the delay in finalizing the terms and conditions of the
Proposed B-Land irredeemable convertible unsecured loan stocks
(ICULS) offer for sale with all relevant parties, B-Land is
unable to submit the said application within the stipulated
period. The Company expects to submit the application to the SC
in relation to the B-Land Proposals within four (4) months from
the date hereof.

An advertisement pertaining to the delay in submission of the
application to the SC in relation to the B-Land Proposals will
be published in the Utusan Malaysia and the Sun in due course.


BERJAYA SPORTS: Purchases 8% Convertible Loan Stocks
----------------------------------------------------
The Board of Directors of Berjaya Sports Toto Berhad said its
wholly owned subsidiary FEAB Properties Sdn Bhd has purchased
irredeemable convertible unsecured loan stocks (ICULS) in the
Company as follows:

1. Date of Purchase: 26th September 2002

2. Number of ICULS Purchased: 100,000

3. Minimum price paid for each ICULS: RM2.42

4. Maximum price paid for each ICULS: RM2.53

5. Total consideration paid: RM249,615.82

6. Total number of ICULS held to-date: 2,396,000

7. Cumulative consideration: RM7,116,658.80 paid to-date

The Company has obtained the necessary approvals for the above
purchase of ICULS up to an amount not exceeding RM1.2 billion.
Details on the ICULS purchase were disclosed in the Company's
Circular to Shareholders dated 5th April 2002 and the Abridged
Prospectus relating to the Rights Issue of ICULS dated 20th June
2002.


HOTLINE FURNITURE: Creditors Approve Debt Restructuring Scheme
--------------------------------------------------------------
Public Merchant Bank Berhad, on behalf of the Board of Directors
of Hotline Furniture Berhad (HFB), announced that the approvals-
in-principle for the Proposed Debt Restructuring have been
obtained from the following creditors of HFB and its subsidiary
companies:

(i) All the Financial Institution Creditors, comprising secured
and unsecured financial institution creditors and Pengurusan
Danaharta Nasional Berhad wth debts amounting to RM103,492,738
owing by HFB and its subsidiairies as at 30 November 2001; and

(ii) Majority of the Trade Creditors comprising unsecured trade
creditors of HFB and the unsecured trade creditors of HFB's
subsidiaries with corporate guarantees issued by HFB with debts
amounting to RM2,603,174 as at 30 November 2001.

Pursuant thereto, HFB will enter into a debt restructuring
agreement and deeds of settlement with the Financial Institution
Creditors and the Trade Creditors respectively for the Proposed
Debt Restructuring prior to the submission of the applications
to the relevant authorities.


LION LAND: Unit Enters Debt Restructuring Scheme
------------------------------------------------
On May 6, 2002, the Directors of Lion Land Berhad (LLB)
announced that Amsteel Mills Sdn Bhd (AMSB), a subsidiary
Company of LLB, had applied to the High Court of Malaya for an
order to convene meetings of its creditors for the purpose of
considering and approving the scheme of arrangement between AMSB
and its creditors (Scheme Creditors) to facilitate the
settlement of its debt owing to the Scheme Creditors (Proposed
Scheme).

Debts not addressed under the Proposed Scheme consist of trade
creditors and other creditors (amounting to approximately RM257
million as at 30 June 2002) and the management of AMSB expects
such liabilities to be repaid in the ordinary course of
business.

With the conclusion of the scheme meetings of AMSB today, the
Proposed Scheme remains subject to the following: -

(i) approval of Bank Negara Malaysia;

(ii) sanction of the High Court of Malaya under Section 176(3)
of the Companies Act, 1965 (Act) being obtained for the proposed
group wide restructuring scheme of Lion Corporation Berhad, LLB,
Amsteel Corporation Berhad and Angkasa Marketing Berhad group of
companies as first announced on 5 July 2000, and subsequently
revised vide the announcements dated 11 September 2000, 19
October 2000, 8 October 2001 and 26 March 2002;

(iii) sanction of the Proposed Scheme by the High Court of
Malaya under Section 176(3) of the Act; and

(iv) approval of any other relevant authorities.

Meeting of AMSB Lenders 93.10 percent in number and 96.64
percent in value

Meeting of Non-Financial Institution ("Non-FI") Creditors Class
I 100 percent

Meeting of Non-FI Creditors Class II 94.87 percent in number and
99.40 percent in value


PAN PACIFIC: Seeks More Time to Regularize Financial Condition
--------------------------------------------------------------
On behalf of the Board of Directors of Pan Pacific Asia Berhad
(PPAB), Alliance Merchant Bank Berhad announced that PPAB has
made another application to the Kuala Lumpur Stock Exchange
(KLSE) seeking KLSE's approval for an extension of time of a
further one (1) month from 30 September 2002 to 31 October 2002
for the Company to make a requisite announcement to the KLSE of
a plan to regularize its financial condition (Proposed Scheme)
within the time frame stipulated, in compliance with the
requirement of paragraph 5.1(a) of Practice Note 4/2001 (PN4) of
the Listing Requirements of the KLSE.

PPAB together with its appointed scheme adviser, Deloitte &
Touche Consulting Group Sdn Bhd, had presented its Proposed
Scheme to the lenders of the PPAB group of companies and had met
up with the lenders on several occasions to discuss the Proposed
Scheme. PPAB is still currently waiting for feedback from its
lenders. The requisite announcement of the details of the
Proposed Scheme will be announced once the Proposed Scheme is
finalized and the agreement-in-principle for the said scheme has
been procured from the lenders.


RAHMAN HYDRAULIC: Unit Ceases Operation
---------------------------------------
Hahman Hydraulic (RHTB) announced that its unit Healthcare
Gloves Sdn. Bhd. (HCG) has ceased business operations with
effect on September 18, 2002.

HCG, a wholly owned subsidiary of RHTB, was incorporated in
Malaysia and is principally engaged in the manufacturing and
marketing of latex examination gloves.

2. RATIONALE FOR CESSATION

The financial performance of HCG has fallen below expected
levels mainly due to competitive prices from other glove
manufacturers, obsolete plant and Machinery and high operating
costs, resulting in monthly losses. The cessation of business
operations was effected to minimize further losses to HCG and to
preserve the assets of the RHTB Group.

3. EFFECTS OF THE CESSATION

The cessation of business operation of HCG involved the
termination of employment contracts of all HCG's employees. All
employees of HCG will be compensated for the termination of
their contracts in accordance to the terms of their employment
and/or the applicable legislation. The cost of termination of
employment contracts (retrenchment benefits payable by HCG) is
estimated at approximately RM 250,000.

The cessation of HCG's operation is not expected to have any
material financial effect on the net tangible assets and earning
per share of the RHTB Group for the financial year ended 31
December 2002.


SPORTMA CORPORATION: MITI Okays Debt Restructuring Proposal
---------------------------------------------------------
Affin Merchant Bank Berhad (Affin Merchant) announced that the
Ministry of International Trade and Industry (MITI) has approved
the proposed modifications of the corporate and debt-
restructuring scheme of Sportma Corporation Berhad (SCB) on 30
August 2000, 6 November 2000 and 31 January 2002.

The approval of the MITI is conditional upon the approval of the
Securities Commission and the Foreign Investment Committee being
obtained for the Proposed Modifications.


SUNWAY CITY: SC Okays Proposed ABS Issue
----------------------------------------
Sunway City Berhad refers to its announcement dated August 15,
2002 and the announcements made by Alliance Merchant Bank Berhad
on May 16, 2002, June 13, 2002, August 19, 2002 and September
25, 2002 in respect of the Proposals, which include, inter-alia,
the Proposed issue of asset-backed securities (ABS) by AREB of
up to a nominal amount of RM450.0 million (Proposed ABS Issue)
to facilitate the purchase of the Proposed Disposals.

The Company on September 25, 2002 received the letter of
approval from the Securities Commission approving the Proposed
ABS Issue.

I. Proposed disposals of five (5) properties, plant and
machinery and lease rights, and redeemable preference shares,
with an aggregate value of up to RM892 million to ABS Real
Estate Berhad (formerly known as Domain Hectares Sdn Bhd)
(AREB), a special purpose vehicle (Proposed Disposals);

II. Proposed issue of commercial paper/ medium term note (CP/
MTN) programme by the Company of up to a nominal amount of
RM250.0 million (Proposed CP / MTN Programme);

III. Proposed taking of operating leases by Suncity from AREB
and granting of sub-leases by Suncity to the respective vendors
thereof; and

IV. Proposed issue of asset-backed securities by AREB of up to a
nominal amount of RM450.0 million (Proposed ABS Issue) to
facilitate the purchase of the Proposed Disposals (Collectively
Referred To As "The Proposals)


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


FIRST E-BANK: BDO Wins Approval to Acquire Bank
-----------------------------------------------
The Monetary Board has approved the agreement between Banco de
Oro (BDO) and First e-Bank (1st e-Bank), whereby BDO will assume
deposits and certain other liabilities of 1st e-Bank, subject to
certain conditions (including among others, Monetary Board
approval), and to final documentation between the parties and
related interests.

Under the agreed structure, BDO, a universal bank, will assume
the banking business of 1st e-Bank, thereby increasing BDO's
deposits by about P10 billion and its customer base by an
estimated 80,000 depositors, mostly Small and Medium Scale
Enterprises. BDO believes this acquisition will further enhance
BDO's strong SME banking business and broaden its consumer
lending activities, particularly in residential mortgages. 1st
e-Bank rings to BDO its cash management business and over 60
well-distributed outlets, improving BDO's distribution and
market coverage. A significant number of 1st e-Bank's branches
are located in areas where DBO has limited presence. Combined,
the two bank's branches will exceed 180 outlets, nationwide. The
acquisition of 1st e-Bank's business is in line with BDO's
commitment to cultivate BDO as a recognized player in the
banking sector and thereby grow shareholder value.

Under the structure, the depositors of 1st e-Bank will be
protected, by becoming depositors of BDO, a highly capitalized
and strong universal bank. 1st e-Bank's customers will gain
access to BDO's wider branch network and its broader array of
financial products. Upon fulfillment of certain specific
conditions, BDO will take over the banking business of 1st e-
bank.

For a copy of the disclosure, go to
http://bankrupt.com/misc/TCRAP_Firstebank0927.pdf


METRO PACIFIC: No Deal Reached With Ayala Land
----------------------------------------------
In a disclosure to the Philippine Stock Exchange (PSE), Ayala
Land Inc. said it has not yet reached any agreement with Metro
Pacific Corp covering financial assistance for the latter's loan
restructuring or participate in any development project in the
Fort Bonifacio Global City.

The disclosure followed Banco de Oro's confirmation it was
approached by Metro Pacific's Fort Bonifacio Development Corp to
help finance the Bonifacio Ridge condominium project in the
global city.

Ayala Land said it is "not in the position to dictate upon FBDC
the parties with whom it should contract," in reaction to
reports FBDC was seeking financing assistance from Sy's Banco de
Oro.

Ayala Land reiterated the statement of Jaime Augusto Zobel de
Ayala II, President of parent Ayala Corp that it has
participated in certain discussions principally being conducted
between Metro Pacific and the Unilab group concerning Metro
Pacific's debt restructuring program.

The discussions included an offer to Ayala Land and the Unilab
group to consider making financing available for the completion
of certain development projects in the Global City, Ayala Land
said. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 192,
September 27, 2002)


PHILIPPINE LONG: Rival Bids for Telecom Could Come After Sep 30
---------------------------------------------------------------
The Philippine Long Distance Telephone (PLDT) Company is nearing
the end of its exclusive agreement with John Gokongwei Jr. for
the latter to purchase the Company, DebtTraders analysts, Daniel
Fan (852-2537-4111) and Blythe Berselli (1-212-247-5300)
reported.

After September 30, rival bids to gain control of PLDT from
First Pacific will be able to be entertained. Since First
Pacific gained control of the Philippine long distance Company,
PLDT has lost about three-quarters of its value.

The original deal had been structured as a joint venture between
First Pacific and Gokongwei that would then own a controlling 24
percent stake in PLDT. Gokongwei would own two-thirds of the
venture, giving him control of one of the largest companies of
the Philippines in a deal valued at $925 million.

DebtTraders reports that Philippine Long Distance Telephone's
11.375 percent 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
=================


ASIA PULP: Signs of Escrow Agreement With IBRA
----------------------------------------------
Asia Pulp & Paper Company Ltd (APP) announced Wednesday that
four of its principal Indonesian operating subsidiaries have
entered into escrow agreements with the Indonesian Bank
Restructuring Agency (IBRA), and Bank Mandiri, a major
Indonesian bank. Under the terms of the escrow agreement, the
operating subsidiaries, Indah Kiat, Tjiwi Kimia, Lontar Papyrus,
and Pindo Deli have today paid the sum of US$60,000,000 into an
escrow account established at Bank Mandiri.

This will be followed by a further US$40,000,000 to be paid
before the end of the month and US$20,000,000 in subsequent
months.

Teguh Wijaya, Chief Executive Officer of APP noted that
implementation of escrow arrangements prior to entering into a
final restructuring plan was an innovative measure to assure the
creditors of APP, and its operating subsidiaries, of their good
faith.

The money paid into the Escrow Account will be applied under the
terms of the consensual debt restructuring plans to be agreed in
respect of each of the Indonesian operating companies.

Meetings in respect of the debt restructuring plans are
scheduled to continue this week under the leadership of Mr
Syafruddin Temenggung, the Chairman of IBRA.

Wijaya commented, "We are very pleased that the escrow accounts
have now been established as requested by IBRA. This will
provide assurance for creditors during the discussions going
forward and is a positive launching pad for future discussion."

APP is one of the world's leading pulp and paper companies. With
current pulp capacity of 2.3 million tonnes and paper and
packaging capacity of 5.7 million tonnes, it ranks number one in
non-Japan Asia.

Headquartered in Singapore, APP currently has 16 manufacturing
facilities in Indonesia and China and markets its products in
more than 65 countries on six continents.

The press release is located at
http://bankrupt.com/misc/TCRAP_APP0927.pdf

DebtTraders reports that Asia Pulp's 11.75 percent bonds due on
2005 (APP7) are trading between 28.5 and 30.5. Go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=APP7for
real-time bond pricing.


CHARTERED SEMICONDUCTOR: No Changes in Fab 7 Plans
--------------------------------------------------
Chartered Semiconductor Manufacturing responded to the news
articles published by News Online on September 18, 2002 and the
EE Times Online on September 20, 2002, which could potentially
be confusing in suggesting that the Company had accelerated its
plans for Fab 7, the Company clarified that there have not been
any changes in its plans for this fab.

Based on the Company's current assessment of market demand,
initial production from Fab 7 is expected in the late third
quarter of 2003, and the rate of ramp thereafter will be based
on market demand. Fab 7 is Chartered's first 300mm fab.

While the Company's usual practice is not to comment on media
reports relating to the Company, in this particular case, the
Company is of the view that it is necessary to issue a
clarification because the Company is in the midst of an offering
of its securities and the report attributed certain statements
to the Company which are potentially confusing.


CHARTERED SEMICON: Clarifies Business Times Articles
----------------------------------------------------
Chartered Semiconductor Manufacturing Ltd clarified its position
in response to two articles that appeared in the September 25,
2002 edition of The Business Times (BT). Under the "On the
grapevine" column appearing on page 2, the article "Stamp of
parsimony" had inaccurately suggested that Chartered was
unwilling to pay postage in the form of providing pre-paid
envelopes to shareholders for its rights offering.

In fact, the practice in Singapore is not to include a pre-paid
envelope together with the prospectus in relation to rights
offering or initial public offerings.

For Chartered's rights offering, the Company will accept
applications, which are submitted with inadequate or nil
postage.

In addition, an article appearing on page 4 misleadingly
suggested that Chartered's rights offering could be called off.
Chartered would like to emphasize that the rights offering will
proceed. As stated in the prospectus relating to the rights
offering, Chartered has secured the commitment from its two
largest shareholders, Singapore Technologies and Singapore
Technologies Semiconductors, to subscribe all their primary
rights and Merrill Lynch has agreed to purchase any shares that
are not taken up in the rights offering. Therefore, Chartered
will receive the full amount of approximately US$634 million
from the offering.


FLEXTECH HOLDINGS: Expiry of Warrants 2002
------------------------------------------
Flextech Holdings Limited notified Wednesday that holders of
Warrants 2002 (Warrant holders) who are in doubt as to the
action they should take should consult their stockbrokers, bank
managers, accountants, solicitors or other professional advisers
immediately.

Warrant holders who have sold their Warrants 2002 should
immediately upon receipt of a copy of this notice, send it to
the purchaser or to the bank, stockbroker or agent through whom
the sale was effected for onward transmission to the purchaser.

EXPIRY OF WARRANTS 2002

Warrant holders are reminded that in accordance with the terms
and conditions of the Warrants 2002, the subscription rights to
subscribe for new ordinary shares of S$0.15 each (New Shares) in
the capital of the Company will expire on Tuesday, 22 October
2002, after which time, any rights comprised in the Warrants
2002 which have not been exercised will lapse and the Warrants
2002 will cease to be valid for any purpose.

EXERCISE PRICE

The exercise price is currently S$1.50 for each New Share
(Exercise Price).

PROCEDURE FOR EXERCISE OF WARRANTS 2002

Warrantholders who wish to exercise their subscription rights
must do so in accordance with the terms and conditions of
Warrants 2002. In particular, an exercising Warrantholder must
complete and sign the notice in the prescribed form (Exercise
Notice) and deliver the same to the warrant agent of the
Company, Lim Associates (Pte) Ltd ("Warrant Agent") at its
address stated below, not later than 5.00 p.m. on 22 October
2002, together with, inter alia:

(a) the remittance in Singapore currency by banker's draft or
cashier's order drawn on a bank operating in Singapore made
payable to "FLEXTECH HOLDINGS LIMITED" for the full amount (free
of any foreign exchange commissions, remittance charges or other
deductions) equal to the aggregate Exercise Price payable in
respect of the Warrants 2002 being exercised. The following
particulars should be clearly written on the reverse of the
banker's draft or cashier's order:

(i) the name of the Warrantholder; and
(ii) the Securities Account(s) number which is to be debited
with the Warrants 2002 being exercised (in relation to Warrants
2002 registered with The Central Depository (Pte) Limited (CDP);

(b) the relevant warrant certificate(s), if the Warrants 2002
are registered in the name of the exercising Warrantholder;

(c) the payment of any fees or expenses payable to CDP and any
stamp, issue, registration or other similar taxes and duties
arising on such exercise;

(d) if applicable, the payment of any fees or expenses for, and
submission of any necessary documents required in order to
effect the issuance and/or delivery of, the share certificates
for the New Shares; and

(e) such evidence (if any) as the Warrant Agent may require to
determine or verify the due execution of the Exercise Notice by
or on behalf of the exercising Warrantholders (including every
joint holder, if any);

The Warrant certificates shall no longer be acceptable for
deposit with CDP for registration purposes after 4 October 2002.

Warrant holders who intend to use their Loan Stock deposited
with The Central Depository (Pte) Limited ("CDP") to tender
towards payment of the monies due to the exercise of rights
under the Warrants 2002, can do so not later than 5.00 p.m. on
22 October 2002.

Warrant holders whose Warrants 2002 are registered in the name
of CDP should note that the exercise of their subscription
rights is further conditional upon, inter alia, the number of
Warrants 2002 being exercised being available in the free
balance of their securities account with CDP.

Copies of the Exercise Notice will be sent to Warrantholders
whose names appear in the Register of Warrantholders as at 24
September 2002, and are also obtainable from the Warrant Agent,
whose address, telephone and business hours are as follows:

Lim Associates (Pte) Ltd
10 Collyer Quay #19-08
Ocean Building
Singapore 049315
Tel no. 65365355
(8.30 a.m. to 5.30 p.m. from Mondays to Fridays)

LAST DAY FOR TRADING IN Warrants 2002

The last day for trading in the Warrants 2002 on the Singapore
Exchange Securities Trading Limited (SGX-ST) will be 15 October
2002 and trading will cease with effect from 9.00 a.m. on
October 16, 2002. The Warrants 2002 will then be de-listed from
the Official List of the SGX-ST on October 23, 2002.


HWA HONG: Striking Off Dormant Subsidiaries
-------------------------------------------
Dormant units of Hwa Hong Corporation Limited (Hwa Hong) have
applied to the Registrar of Companies to be struck off the
Register under Section 344 of the Companies Act, Cap. 50:

(i) SP International Pte. Ltd. (SPI)
(ii) SPACE Resources Pte Ltd (SPR)
(iii) SP Vietnam (Pte.) Ltd. (SPV)

The Registrar of Companies has accepted the applications.

SPI, SPR and SPV are wholly owned subsidiaries of Singapore
Warehouse Company (Private) Ltd., which in turn is a wholly
owned subsidiary of Hwa Hong.


LABROY MARINE: Executes 5-Yr S$90M Syndicated Loan Facility
-----------------------------------------------------------
The Board of Directors of Labroy Marine Limited announced
Thursday that the Company has executed a 5-year S$90,000,000
Syndicated Term Loan Facility Agreement (the Facility) with a
syndicate of banks and financial institutions (the Lenders)
arranged by the Development Bank of Singapore Limited (the
Arranger).

The Company intends to use part of the Facility to refinance the
S$60,000,000 transferable loan facility granted to the Company
under a loan agreement dated 2 September 1997 made between the
Company and the Development Bank of Singapore Limited as lender
and arranger. The balance of S$30,000,000 will be utilized for
the refinancing of short term borrowings, to finance capital
expenditure and working capital requirements of the Company and
it's subsidiaries.

The Facility is not expected to have a material effect on the
net tangible assets per share and earnings per share of the
Company and its subsidiaries for the current financial year
ending 31 December 2002.

None of the directors or substantial shareholders of the Company
has any interest, direct or indirect, in this transaction.

According to Wright Investor's Service, at the end of 2001,
Labroy Marine Limited had negative working capital, as current
liabilities were 187.62 million Singapore Dollars while total
current assets were only 156.10 million Singapore Dollars.


LIANG HUAT: Posts 1H02 Net Loss of S$6.332M
-------------------------------------------
Liang Huat Aluminium Ltd said its net loss widened to S$6.332
million in the six months to June versus 3.097 million a year
ago as sales in the fabrication division fell by 66 percent,
mainly due to the absence of major commercial contracts, AFX
Asia reports.

The Company does not expect to post a profit for the current
year, as it does not expect any economic recovery in the
countries in which it operates.


SMRT CORPORATION: Dissolution of Subsidiary
-------------------------------------------
SMRT Corporation Ltd announced that Hollycourt Limited, a
wholly-owned subsidiary held by TIBS Holdings Ltd, which in turn
is a wholly-owned subsidiary of the Company, was dissolved on 29
August 2002, pursuant to voluntary liquidation proceedings
commenced earlier.

Hollycourt Limited was an investment holding Company
incorporated in the British Virgin Islands and its dissolution
will have no impact on the business or affairs of the Group.


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


KRUNG THAI: Okays Bht2.6B Loan For ChiangMai
--------------------------------------------
Krung Thai Bank Plc and Bank of Ayudhya Plc said they have
jointly approved a 2.6 billion baht syndicated loan for
ChiangMai Construction Co Ltd, AFX said Thursday.

A total of 1.6 billion baht will be used to refinance
ChiangMai's foreign debt and the remainder for working 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,
Salve M. Mordeno, Ma. 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
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contained herein is obtained from sources believed to be
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