TCRAP_Public/021106.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

         Wednesday, November 6, 2002, Vol. 5, No. 220

                         Headlines

A U S T R A L I A

COLES MYER: Two Institutional Investors Line Up Against Lew
TIDIRU PTY: Liquidation Along with Ausbanque Paused
TOWER: Investors Abandon Firm After Forecasting Losses


C H I N A   &   H O N G  K O N G

CIL HOLDINGS: Court Grants Firm More Time to Implement Debt Plan
GRACE WON: Hearing on Wind Up Petition Set for December 4
HUNG LEE: Petition Seeking Wind Up Slated for December Hearing
RADIER LIMITED: Wind Up Petition To Be Heard December 4
SINA.COM: Chops First Quarter Losses to US$500,000

UNIVERSAL TAXI: High Court to Hear Wind Up Case November 20


I N D O N E S I A

BANK DANAMON: IBRA Struggles to Sell Majority Stake
BANK NIAGA: CAHB Expects Deal Closure by Month's End


J A P A N

ASAHI MUTUAL: JCR Downgrades Rating to B+
HITACHI LIMITED: Enters Alliance With eGain
HYOGO KAIHATSU: Files For Civil Rehabilitation Proceedings
MATSUSHITA ELECTRIC: Discloses Details of Business Divisions
MATSUSHITA ELECTRIC: Executes Own Share Repurchase

MEDCA JAPAN: R&I Downgrades Rating to B+
SAPPORO BREWERIES: R&I Downgrades Rating to BB
SHOWA AIRCRAFT: JCR Affirms BBB- Rating

* O'Melveny & Myers LLP Partners with Watanabe Kokusai Law


K O R E A

ASIANA AIRLINES: Giving 15% Discount to Busan Passengers
CHOHUNG BANK: Govt Determined to Offload Bank by Month's End
CHOHUNG BANK: Govt May Opt Not to Sell 80.04% Stake
DAEWOO INTERNATIONAL: Unit Completes Restructuring Process
DAEWOO MOTOR: Daewoo Commercial Vehicle Splits From Carmaker

HYNIX SEMICONDUCTOR: Investigates Missing US$100 Million
HYUNDAI MOTOR: Slashing 130 Administrative Staff
HYUNDAI MOTOR: Enters Deal With Mitsubishi and Hyundai Mobis
KIA MOTORS: U.S. Unit Sales Up 7%
KOREA ELECTRIC: Unit Aims to Issue $200 Million in Bonds


M A L A Y S I A

AMSTEEL CORPORATION: Commission Waives Restructuring Condition
ANGKASA MARKETING: Commission Cancels Restructuring Stipulations
AOKAM PERDANA: Negotiations with 'White Knights' Continue
AUSTRAL AMALGAMATED: Status of Restructuring Scheme Unchanged
AUTOWAYS HOLDINGS: Finalizes Terms of Restructuring Scheme

CHASE PERDANA: To Hold Court-ordered Creditors Meeting Soon
CHASE PERDANA: Updates KLSE of Repayments on Defaulted Loans
CSM CORPORATION: PN4 Status on KLSE Remains Unchanged
GENERAL LUMBER: Wants Winding Up Petition Settled
KEMAYAN CORPORATION: To Regularize Finances via New Entity

MALAYSIAN GENERAL: Restructuring Application Remains Pending
MGR CORPORATION: Reports No Status Change in Restructuring Plan
PAN MALAYSIA: Tells KLSE Restructuring Plans Remain Unchanged
PROMET BERHAD: Nears Signing Definitive Restructuring Pact
RAHMAN HYDRAULIC: Request for Rescue Period Extension Pending

SASHIP HOLDINGS: Finalizing Restructuring Scheme Documents
SISTEM TELEVISYEN: Holding EGM to Approve 'Corporate Proposals'
TAI WAH: Rescue Talks Extended to Allow Debt Plan Formulation
TECHNO ASIA: Announces Modification on Restructuring Plan
TELEKOM MALAYSIA: Withdraws Investment in GT

TENAGA NASIONAL: Settlement of UBS Suit Seen by Year's End
WING TIEK: Approval on Proposed Debt Plan Remains Pending


P H I L I P P I N E S

ASIAN TERMINALS: Board Elects Richard Barclay as President
BENPRES HOLDINGS: Will Resume Debt Payments by December
EAST ASIA: Q302 Net Loss Widens to PHP795.849 Million
MUSIC CORPORATION: Enters Bankruptcy Petition in U.S.
NATIONAL POWER: Posts Results of IPP Contracts Review

NATIONAL POWER: Cutting Loan Size to US$250 Million
NATIONAL POWER: Expects to Charge Lower Electricity Prices
PHILIPPINE LONG: Holding Crucial Board Meeting on November 5
PHILIPPINE LONG: Posts 3Q02 Financial Results
PHILIPPINE LONG: Management on Track to Meet FY02 Targets

PHILIPPINE LONG: Cuts Debt by US$82 Million in September


S I N G A P O R E

NEPTUNE ORIENT: Unit Sells Loss-making Operations for US$4.50M
NEPTUNE ORIENT: Appoints Connal Rankin as Board Member
SEMBCORP INDUSTRIES: Schedules EGM on November 13
SEMBCORP INDUSTRIES: Proposes to Sell SFI Shares


T H A I L A N D

TPI POLENE: Only Court Can Remove Administrator, Says Prachai
TPI POLENE: Public Offering Next Best Option to Hike Capital
TPI POLENE: Trims EBITDA Estimate Due to Competition, Cost

     -  -  -  -  -  -  -  -  -  -

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


COLES MYER: Two Institutional Investors Line Up Against Lew
-----------------------------------------------------------
The "gang of eight" directors opposed to the re-election of
Solomon Lew to the board of Coles Myer gained major backing
Monday when AMP and the Queensland Investment Corporation said
they would vote against the long-time director.

Sydney Morning Herald yesterday said AMP's investment arm, AMP
Henderson Global Investors, will vote its 2.8 percent stake
against Mr. Lew, his boardroom ally, Mark Leibler, and nine
other external candidates.

Queensland Investment Corporation (QIC), which owns 0.6 percent
of Coles Myer's issued capital, said it planned to vote against
Mr. Lew, Mr. Leibler and the other candidates "in the interest
of an informed market."

AMP had previously led a revolt by institutions against Mr.
Lew's leadership of Coles Myer in 1995.  The coup forced Mr. Lew
to step down as chairman, but he retained his board seat.

AMP's decision to again publicly oppose Mr. Lew was consistent
with its own "disastrous business performance," a Lew source
told the paper.

Other institutions are expected to announce how they intend to
vote ahead of the meeting.  But Coles Myer's largest
institutional shareholder, fund manager Maple-Brown Abbot, is
believed to be keeping secret how it will vote its 5 percent
stake, the paper said.

The shares publicly opposed to Mr. Lew now equal about 8.4
percent of the retailer's issued capital, comprising the AMP and
QIC shareholdings, and a 5 percent stake controlled by members
of the Myer family, which said last week that all candidates,
including Mr. Lew and Mr. Leibler, would be opposed.


TIDIRU PTY: Liquidation Along with Ausbanque Paused
---------------------------------------------------
The Australian Securities and Investments Commission (ASIC) has
successfully applied to the Supreme Court of Queensland for
interlocutory orders restraining the liquidators of Tidiru Pty
Ltd (Tidiru) and Ausbanque Pty Ltd (Ausbanque) from taking any
further steps in the liquidation, until the Court makes further
orders.

ASIC is concerned about the circumstances surrounding the
reinstatement of Tidiru and Ausbanque, two deregistered
companies, by Richard Charles Salisbury and his wife, Eunice
Maraea Salisbury.

ASIC has alleged that Mr. and Mrs. Salisbury were not entitled
to reinstate the companies and that their appointment as
directors was invalid. ASIC has concerns that the appointment of
administrators and liquidators to the companies was consequently
invalid as well.

Mr. Salisbury appointed Geoffrey McDonald and Richard Albarran,
of Hall Chadwick, as administrators, and subsequently
liquidators, of the companies. He also lodged 'proofs of debt'
for the costs incurred as a result of his reinstatement of the
companies.

The companies were placed into voluntary liquidation following a
creditors' meeting on August 8, 2002.

The matter will return to court on a date to be set.


TOWER: Investors Abandon Firm After Forecasting Losses
------------------------------------------------------
About US$240 million of 43% were wiped off the market
capitalization of Tower on Monday, after the company replaced
last Friday its positive outlook for the year with a loss
forecast.

Shares of the mid-sized life insurance and funds management
group dropped AU$1.35 to AU$1.75 or 2 cents off the day's low,
Sydney Morning Herald said yesterday.  

Merrill Lynch had previously expected annual net profit of about
AU$83 million by December 5, but Tower said on Friday that it
would record a loss of at least NZ$30 million (AU$26.3 million)
and a dividend is unlikely, the paper said.  The announcement
contradicted the upbeat roadshows Tower had conducted for
brokers and investors in the past two months.

The paper says the loss could yet be far worse because Tower is
planning to revalue downwards its Australian financial planning
business, Bridges, bought for AU$168 million in 2000.  Also
Tower said it was not yet able to determine the effect of weak
sharemarkets on investment returns.

Some analysts interviewed by the Sydney Morning Herald believe
the only glimmer of hope for the share price is a takeover,
though the long-list of problems in the business suggest few
parties would be willing to make a bid right now.

"It is clearly a very tough operating environment for life
insurers and wealth management companies at the moment, and
Tower are not the only ones being affected," JB Were & Son said
in a note. "Tower are at a disadvantage given their lack of
scale or compelling brand and relatively weak distribution."

Tower cited "changes to market factors" for the revaluation now
being undertaken on Bridges. Another reason for the revaluation
of Bridges is believed to be demands by its planners for a
greater cut of commissions, the paper said.



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


CIL HOLDINGS: Court Grants Firm More Time to Implement Debt Plan
----------------------------------------------------------------
The High Court of Hong Kong adjourned Monday the winding up
hearing against CIL Holdings Ltd until December 16, 2002 to
afford the company more time to implement its restructuring
plan.

In a statement, the company said it is currently working towards
finalizing the relevant court documents in relation to the
restructuring plan and "intends to submit an application for the
directions of the courts as soon as practicable."

Total indebtedness of the group is HK$318 million and all
indebtedness are due within one year.  As of December 2001, the
group had net current liabilities of approximately HK$153
million and total liabilities to equity ratio of approximately
3.75 times.  

CIL Holdings Limited's principal activities are the provision of
interior decoration and renovation services, building
construction, electrical and mechanical engineering, trading of
building and interior decoration materials. The Group also
develops and sells computer component, hardware and software and
other electrical parts and equipment.

Other activities include property development, investment
holding and manufacturing of multi-media products. Trading of
multi-media and communication products accounted for 87% of
fiscal 2001 revenues and interior decoration materials, 13%, a
Wrights Investor's dossier says.


GRACE WON: Hearing on Wind Up Petition Set for December 4
---------------------------------------------------------
Grace Won Transportation Limited faces a wind up petition, which
the High Court of Hong Kong will hear on December 4, 2002 at
9:30 in the morning.

Ting Kam Yuen (the attorney for Chung Lai Kuen and the other
dependants of Lam Ban Jin deceased) of the Hong Kong Seaman's
Union, A2, 2/F., United Court, 37G Jordan Road, Kowloon, Hong
Kong brought the petition on October 3, 2002.  Messrs. Erving
Brettell represents the petitioner.

Creditors and other interested parties are encouraged to appear
during the hearing.  They only need to notify in writing Messrs.
Erving Brettell, which holds office at the 8/F., On Hing
Building, 1-9 On Hing Terrace, Central, Hong Kong.


HUNG LEE: Petition Seeking Wind Up Slated for December Hearing
--------------------------------------------------------------
The High Court of Hong Kong will hear on December 4, 2002 at
9:30 in the morning the petition seeking the wind up of Hung Lee
Construction Engineering Company Limited.

Wong Wai Ho of Room 1816, Kwai Yiu House, Lai Yiu Estate, Kwai
Chung, New Territories, Hong Kong brought the petition on
September 27, 2002.  Tam Lee Po Lin, Nina represents the
petitioner.

Creditors and other interested parties are encouraged to attend
the hearing.  They only need to notify in writing Tam Lee Po
Lin, Nina, which holds office at 27th Floor, Queensway
Government Offices, 66 Queensway, Hong Kong.


RADIER LIMITED: Wind Up Petition To Be Heard December 4
-------------------------------------------------------
The High Court of Hong Kong will hear on December 4, 2002 at
9:30 in the morning the petition seeking the wind up of Radier
Limited.

Bank of China (Hong Kong) Limited (the successor corporation to
The China State Bank Limited pursuant to Bank of China (Hong
Kong) Limited (Merger) Ordinance (Cap. 1167) of 14th Floor, Bank
of China Tower, 1 Garden Road, Central, Hong Kong brought the
petition on October 4, 2002.  Koo and Partners represents the
petitioner.

Creditors and other interested parties are encouraged to attend
the hearing.  They only need to notify in writing Koo &
Partners, which holds office at the 21st-22nd Floors, Bank of
China Tower, No. 1 Garden Road, Central, Hong Kong.


SINA.COM: Chops First Quarter Losses to US$500,000
--------------------------------------------------
The loss column of Chinese Internet firm Sina.com improved
during the first quarter, says Bloomberg, which noted an 89%
drop on account of good subscription and advertising revenue.

During the three months to September 30, the firm narrowed its
losses to 559,000 US-dollars, a marked improvement from US$5.3
million a year ago.  Bloomberg says sales rose 71 percent to
US$10.3 million, while advertising revenue grew 26 percent to
US$6.5 million.  Operating profit was US$3.1 million.

Non-advertising sales more than quadrupled to a record US$3.9
million, primarily because of the growth of its wireless short-
messaging system with features such as "Mobile Hunter" dating
service and services such as electronic commerce, the company
said in a statement.


UNIVERSAL TAXI: High Court to Hear Wind Up Case November 20
-----------------------------------------------------------
A petition seeking the wind up of Universal Taxi Limited is
scheduled for hearing before the High Court of Hong Kong on
November 20, 2002 at 9:30 in the morning.

Bank of China (Hong Kong) Limited (the successor corporation to
The China State Bank Limited pursuant to Bank of China (Hong
Kong) Limited (Merger) Ordinance (Cap. 1167) of 14th Floor, Bank
of China Tower, 1 Garden Road, Central, Hong Kong filed the
petition on September 16, 2002.  Koo and Partners represents the
petitioner.

Creditors and other interested parties may attend the hearing.  
They only need to notify in writing Koo and Partners, which
holds office at the 21st-22nd Floors, Bank of China Tower, No. 1
Garden Road, Central, Hong Kong.



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


BANK DANAMON: IBRA Struggles to Sell Majority Stake
---------------------------------------------------
Indonesian Bank Restructuring Agency (IBRA) Chairman Syafruddin
Temengung said the agency is struggling to win legislators'
support for the sale of a majority stake in Bank Danamon,
highlighting again the problems behind meeting reform targets
amid an assertive legislative, the Jakarta Post reported.

Although state asset sales do not require the House of
Representatives' approval, Temengung had asked State Minister
for State Enterprises Laksamana Sukardi to send a letter to seek
the support of the legislature, to avoid a political backlash
for selling national assets.

The government plans to sell this year a 71 percent stake in
Bank Danamon, in which it owns a 99.36 percent stake under IBRA.

Selling the bank is part of the government's reform targets as
outlined under its Letter of Intent (LoI) to the International
Monetary Fund (IMF) last year.

Compliance with the LoI targets is mandatory to obtain the IMF
loans, worth in total some $5 billion under a four year
contract.

Based on the LoI, the government should have sold Bank Danamon
to strategic investors by July. Preparations however have just
begun, and Syafruddin said IBRA had yet to appoint financial
advisors for the sale.

The late start has been blamed on the long process behind the
sales of Bank Niaga and Bank Central Asia (BCA), the latter of
which took almost two years to complete.

The process has been prolonged mainly due to objections from a
number of legislators who have resisted foreign ownership in
these banks.

Last month though, several legislators admitted that they and
their colleagues were offered money by IBRA to agree to the
sale, charges the agency has denied.

Bank Danamon, Bank Niaga, BCA, and another bank slated for sale,
Bank Lippo, were nationalized after the government injected them
with billions of dollars worth of recapitalization bonds to
prevent them from folding during the 1997 economic crisis. (M&A
REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 219, November 5,
2002)


BANK NIAGA: CAHB Expects Deal Closure by Month's End
----------------------------------------------------
Commerce Asset-Holding Bhd (CAHB) Director Rozali Mohamed Ali
said CAHB expects to close the deal on its acquisition of 51
percent of PT Bank Niaga by end-November or December, at the
latest, saying they are now in the process of concluding the
terms of the purchase, a report from the AFX-Asia News said.

Commerce Asset, the final bidder for the Bank Niaga stake, made
an offer at IDR26.5 per share or a total of IDR1.057 trillion
ah, representing a price to book value level of 1.45 times. (M&A
REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 219, November 5,
2002)



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


ASAHI MUTUAL: JCR Downgrades Rating to B+
-----------------------------------------
Japan Credit Rating Agency (JCR) has downgraded the rating of
Asahi Mutual Life Insurance Company from BB to B+, removing it
from Credit Monitor.

Rationale

Asahi Mutual Life Insurance and Tokyo Marine & Fire Insurance
announced in January 2002 that they would abandon the plans to
transfer the Asahi Mutual's sales force for new business to
Tokio Marine's wholly-owned life insurance subsidiary and the
subsequent merger between the two companies. Asahi Mutual Life
Insurance plans to change the corporate form to a joint-stock
Company in 2004 and joint the Millea Holdings that was formed in
April with operations of Tokyo Marine & Fire and Nichido Fire &
Marine being integrated. Asahi Mutual Life is now carrying out
the reform plan.

The sales of new policies for fiscal 2001 ended March 31, 2002
increased a year-on-year 17 percent. Weight of switchover of the
policies in sales of new policies is high, reflecting the
Company's focus on the capturing of the changeover. On the other
hand, surrender amount increased a year-on-year 75.3 percent.
The ratio of surrender to the beginning policies in force
increased to 15.4 percent. Surrender increased rapidly after the
announcement of the cancellation for the integration plan above.
Although the surrender now lowered, JCR will continue to watch
carefully the trend of business contracts. Asahi Mutual
decreased the policies in force as of end of March 2002 by 9.7
percent from a year earlier. The drop was the highest among the
major 10 life insurers.

The core profit increased a year-on-year 1.4 percent. The
increase was primarily due to gains on cancellation of
contracts, however. Asahi Mutual's profitability as measured by
the ratio of core profit less reserves for dividends to
liability reserves remains low. The Company has been reducing
costs, pulling out of the group annuities, shrinking group
insurance business and emphasizing the retail insurance as well
as cutting the administrative jobs.

Asahi Mutual Life carried unrealized loss on stocks amounting to
237 billion yen as of end of March 2001. It has been reducing
the exposure to stock prices since then. Asahi Mutual Life
incurred pretax loss before extraordinary items and net loss for
fiscal 2001, writing down the securities and incurring loss on
sales of them. Although the unrealized loss on domestic stocks
was reduced to 105.9 billion yen as of end of March 2002, the
loss still has significantly adverse impact on the capital base
of the Company. The buffer for asset price fluctuations was
reduced with the reserves for decline in asset value and
contingency reserves being taken out almost fully. It raised
capital funds of 11 billion yen from 10 companies of Furukawa
group. Asahi Mutual's strength against the falling stock prices
lowered, anyway.


HITACHI LIMITED: Enters Alliance With eGain
-------------------------------------------
eGain Communications Corp., a leading provider of knowledge-
powered customer service software and services to the Global
2000, announced a global alliance with Hitachi, Ltd. The
companies signed a partnership agreement in September 2002 and
will initially focus on the Japanese financial services market
with plans to expand to China and other geographies in the
future. Enterprise customers will benefit from a robust, high-
ROI solution from the combination of Hitachi's platform and
systems integration expertise with eGain's best-in-class multi-
channel customer service software.

"We look forward to working with eGain, a recognized leader in
multi-channel customer service, to help companies improve their
service while reducing costs," said Mr. Keiichiro Inaba,
Department Manager of Financial Business Information Systems
Planning of Hitachi. "eGain's proven software and Hitachi's deep
systems integration and industry-specific domain expertise will
translate to maximized value for our clients."

"As companies increasingly rely on differentiated customer
service to sustain their business, we are continuing to see
worldwide demand for our offerings," said Gunjan Sinha, eGain's
President. "A strategic alliance with a leading systems
integration partner such as Hitachi will provide us broader
market reach, while assuring customer success."

"The alliance combines best-in-class providers in customer
service technologies and global systems integration," said Mr.
Nobuyuki Kuga, Regional Manager of eGain, Japan. "This will give
added impetus to eGain's already strong momentum in Japan."

eGain www.eGain.com is a leading provider of software and
services that enable knowledge-powered multi-channel customer
service. Selected by 24 of the 50 largest global companies to
transform their traditional call centers into knowledge-powered
multi-channel contact centers, eGain solutions measurably
improve operational efficiency and customer retention,
delivering a significant ROI. eGain eService Enterprise, the
Company's software suite, also available as a hosted service,
includes applications for knowledge management, web self-
service, email management, and web collaboration, as well as
certified integrations with existing call center infrastructure
and business systems. Additionally, eGain offers a comprehensive
set of professional services including business consulting,
implementation services, 24x7 support, education, and training.

Headquartered in Sunnyvale, Calif., eGain has an operating
presence in 18 countries and serves over 800 enterprise
customers worldwide, including ABN AMRO, DaimlerChrysler, and
Vodafone. To find out how eGain can help you leverage customer
service for competitive advantage, please call the Company's
offices -- United States: 888/603-4246; London: +44 (0) 1753
464646; or Sydney: +612 9492 5400.

Hitachi, Ltd. global.hitachi.com headquartered in Tokyo, Japan,
is a leading global electronics Company, with approximately
320,000 employees worldwide. Fiscal 2001 (ended March 31, 2002)
consolidated sales totaled 7,994 billion yen ($60.1 billion).
The Company offers a wide range of systems, products and
services in market sectors, including information systems,
electronic devices, power and industrial systems, consumer
products, materials and financial services.

Trademarks: FREIA21 is a trademark of Hitachi, Ltd. eGain, the
eGain logo and all other eGain product names and slogans are
trademarks or registered trademarks of eGain Communications
Corp. in the United States and/or other countries. All other
Company names and products mentioned in this release may be
trademarks or registered trademarks of their respective
companies.

According to TCR-AP Hitachi Ltd's cash and cash equivalents as
of June 30, 2002 totaled 799.8 billion yen (US$6,665 million), a
decline of 229.5 billion yen (US$1,913 million) during the first
quarter. Debt on June 30, 2002 stood at 2,952.7 billion yen
(US$24,606 million), 45.4 billion yen (US$379 million) less than
at March 31, 2002.


HYOGO KAIHATSU: Files For Civil Rehabilitation Proceedings
----------------------------------------------------------
Resona Holdings, Inc. (Resona HD) announced that Hyogo Kaihatsu
Co., Ltd. and its affiliated Company, Legend Co., Ltd. (The
Companies), both of which are customers of The Daiwa Bank, Ltd.
(Daiwa Bank), a wholly owned subsidiary of Resona HD, filed
applications to the Kobe District Court for commencement of
civil rehabilitation proceedings. Due to this development, there
arose a concern that the claims to the Companies may become
irrecoverable or their collections may be delayed. Details are
announced as follows:

1. Outline of The Company

(a) Corporate Name   1. Hyogo Kaihatsu Co., Ltd.  2. Legend Co.,
    Ltd.
(b) Address  Kitabatake 571, Oogo-cho, Kita-ku, Kitabatake 571,
    Oogo-cho, Kita-ku, Kobe-shi, Hyogo-ken Kobe-shi, Hyogo-ken

    (Registered Address) Sonezaki 2-11-24, Kita-ku, Osaka-shi

(c) Representative     Isao Obayashi   Isao Obayashi
(d) Amount of Capital  42 million yen  31 million yen
(e) Line of Business Management of golf courses Management of
    golf courses

2. Fact Arisen to the Company and Its Date

(a) Hyogo Kaihatsu Co., Ltd. The Company filed an application to
    the Kobe District Court for commencement of civil
    rehabilitation proceedings on October 29, 2002.

(b) Legend Co., Ltd. The Company filed an application to the
    Kobe District Court for commencement of civil rehabilitation
    proceedings on October 29, 2002.

3. Amount of the Claims to the Company

(a) Hyogo Kaihatsu Co., Ltd.          Daiwa Bank 0.3 billion yen
(b) Legend Co., Ltd.                  Daiwa Bank 5.2 billion yen

Asahi Bank, Kinki Osaka Bank and Nara Bank, other subsidiaries
of Resona HD, have no claims to the Companies.

4. Impact of This Development on the Previous Earnings Forecast

This development does not affect the non-consolidated and
consolidated earnings forecasts for the first half of fiscal
year 2002, which was announced on October 25, 2002.


MATSUSHITA ELECTRIC: Discloses Details of Business Divisions
------------------------------------------------------------
Matsushita Electric Industrial Co. Limited posted details of its
business divisions, including information previously announced
on September 26, 2002, as follows:

1. Division of Matsushita Electric Industrial Co., Ltd's (MEI)
communications equipment sales functions, and transfer of such
to Matsushita Communication Industrial Co., Ltd. (MCI)

Purpose of business division

As announced on April 26, 2002 in the 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

October 30, 2002           Board resolutions to approve business
                           division agreement

October 30, 2002           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 one
(1) share of common stock of MCI. Preceding this business
division and transfer, MCI (the succeeding Company) became a
wholly owned subsidiary of MEI on October 1, 2002. Accordingly,
the structure of this business division was adopted to maintain
MCI as a wholly owned subsidiary of MEI, in which MCI will allot
one (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
relevant business to be transferred from MEI to MCI, which are
considered to be mandatory for MCI (the succeeding Company) to
operate such 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

There will be no new directors or corporate auditors of the
succeeding Company appointed at the time of the business
division. Yasuo Katsura has been slated as President. Other
directors and corporate auditors of the succeeding Company will
be decided at the general meeting of shareholders of the new
Company.

Basic information for MEI and MCI  (non-consolidated basis)
(as of September 30, 2002)

Trade Name Matsushita Electric Industrial Co., Ltd.                    
Date of Incorporation        December 15, 1935          
Principal Office   Kadoma-shi, Osaka, Japan   
Representative     Kunio Nakamura, President  
Capital Stock      258,738 million yen         
Shares Issued          2,138,515,837          
Shareholders' Equity   2,567,709  million yen        
Total Assets               4,401,440   million yen
Financial Closing Date     March 31           
No. of Employees              50,121          

Major Customers    Consumer products-- widely distributed to
general public through consumer and household equipment sales
networks.

Trade Name  Matsushita Communication Industrial Co., Ltd.
Date of Incorporation        May 31, 1944
Principal Office    Kohoku-ku, Yokohama, Japan
Representative     Yasuo Katsura, President
Capital Stock      258,738 million yen         
Shares Issued          188,149,981
Shareholders' Equity   317,469 million yen
Total Assets               4,401,440   million yen
Financial Closing Date     March 31           
No. of Employees              7,611

Major Customers:    Components sold mainly to corporations,
government agencies and manufacturers through systems and
industrial sales networks.


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.  Net sales 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 transferred from MEI

   Item                     Amount
   Assets                   73 billion yen
   Liabilities              72 billion yen

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

October 30, 2002           Board resolutions to approve business
                           division agreement

October 30, 2002           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. Preceding this business division and
transfer, MCI (the Company dividing business units) became a
wholly owned subsidiary of MEI on October 1, 2002. 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
relevant 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.

TCR-AP previously reported that Matsushita has been trying to
free itself 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 more information, visit the Company's Website at
www.panasonic.co.jp


MATSUSHITA ELECTRIC: Executes Own Share Repurchase
--------------------------------------------------
Matsushita Electric Industrial Co., Ltd., best known for its
"Panasonic" and "National" brand products, has purchased a
portion of its own shares from the market in conformity with
provisions of Article 210 of the Japanese Commercial Code.

The Company also announced that it will repurchase shares of its
own stock as part of ongoing efforts to maximize shareholder
value. At the general meeting of shareholders in June of this
year, a proposal for the Company to repurchase shares was
approved. Within these limits, the Company currently intends to
purchase up to 70 million shares worth a maximum of 100 billion
yen by late February 2003.

Details of the share repurchase are as follows:

1. Class of shares: Common stock

2. Period of purchase: Between October 2, 2002 and October 29,  
   2002

3. Aggregate purchase amount: 20,993,047,000 yen

4. Aggregate number of shares purchased: 17,000,000 shares

5. Method of purchase: Shares were purchased on the Tokyo Stock
   Exchange

(Reference)

The following are the resolutions that were approved at the
ordinary
general meeting of shareholders held on June 27, 2002:

- Class of shares: Common stock

- Aggregate number of shares to be purchased: Up to 180 million
  shares

- Aggregate purchase amount: Up to 300 billion yen  (M&A
  REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 219, November 5,
  2002)


MEDCA JAPAN: R&I Downgrades Rating to B+
----------------------------------------
Rating and Investment Information, Inc. (R&I) has downgraded the
senior long-term credit rating of Medca Japan Co. Ltd. to B+
from BB.

Senior Long-term Credit Rating: B+ (Downgraded from BB)
ISSUE: Bonds Rated Issue Date Redemption Issue Amount (mn)
Unsec. Conv. Bonds No. 1 May 07, 1996 May 31, 2005 Yen 4,500
Unsec. Conv. Bonds No. 2 Sep 25, 1997 Nov 30, 2006 Yen 6,000
R&I RATING: B (Downgraded from BB-)

RATIONALE:

Medca Japan Co., Ltd., is a medium-sized clinical testing
laboratory, based in Saitama Prefecture that has also been
developing a long-term care business. Its customer hospitals are
experiencing a business slump that has slowed collection on
receivables, and Medca Japan's loans to group companies and
hospitals with close ties to the Company have ballooned.

The Company is losing some of its financial flexibility as a
result. In order to expand its long-term care business, Medca
Japan has taken on a heavy burden of investment in long-term
care centers, which are necessary for this expansion. The
Company's financial composition has necessarily deteriorated.

Given additional considerations, such as the business climate
for financial institutions the Company does business with, R&I
has decided to downgrade Medca Japan's long-term preferred debt
rating two notches to B+. Since much of the Company's debt is
secured, R&I will reflect the collection risk for these bonds by
downgrading them a single notch to a rating of B.


SAPPORO BREWERIES: R&I Downgrades Rating to BB
----------------------------------------------
Rating and Investment Information, Inc. (R&I) has removed the
following ratings of Sapporo Breweries Limited from the rating
monitor scheme, and has downgraded them as follows:

ISSUER: Sapporo Breweries Ltd. (TSE Code: 2501)
Senior Long-term Credit Rating: BBB (Downgraded from (BBB+);
Removed from the Rating Monitor scheme)
ISSUE: Bonds Rated Issue Date Redemption Issue Amount (mn)
Unsec. Conv. Bonds No. 3 Jun 30, 1994 Dec 18, 2009 Yen 20,000
R&I RATING: BBB (Downgraded from (BBB+);
Removed from the Rating Monitor scheme)
ISSUE: Domestic Commercial Paper Program
Issue Limit: 50,000 million yen
R&I CP RATING: a-2 (Rating Affirmed)

R&I RATING: BBB
(Downgraded from (BBB+); Removed from the Rating Monitor scheme)

RATIONALE:

Sapporo Breweries Ltd., is ranked third in the beer industry.
Earnings deteriorated at the beginning of fiscal 2002 as the
Company was hit hard by price competition in the "happoshu" beer
(beer with a lower malt input) market and declining sales of its
leading "Black Label" brand. Since the decline in sales volume
became clear in 1998, the Company has been making efforts to
improve earnings by cutting costs, primarily through plant
closures. It has now decided to close two plants in Sapporo and
Saitama. However, it will be difficult for the Company to move
beyond offsetting the shrinkage in sales to expand earnings in
the short term under the current circumstances of a prolonged
decline in share with a likely contraction of the market.

The Company's real estate business, a relatively stable source
of earnings, has also seen a decline in profit margins primarily
at Ebisu Garden Place due to the impact of the economic
recession and changes in the demand and supply environment.
Overall earning potential and capability to generate cash flow
has declined while concerns have mounted that a reduction in
interest bearing liabilities, which have ballooned with the
redevelopment of a former factory site, will be prolonged.

In view of this, R&I has removed the Company's Senior Long-term
Credit Rating from its Rating Monitor scheme on which it was
placed with a view to downgrading on August 2, 2002 and has
downgraded the rating from BBB+ to BBB. It has affirmed its a-2
rating for the commercial paper program, which was not placed on
the Rating Monitor scheme.

R&I believe that the effects of market contraction will be
greater than previously expected. It is possible that downward
pressure will mount on the creditworthiness of the beer and
happoshu industry, including Sapporo Breweries, and the liquor
industry depending on the speed and extent of changes in the
market environment.

According to Wright's Investor Service, at the end of 2001,
Sapporo Breweries Limited had negative working capital, as
current liabilities were 276.53 billion yen while total current
assets were only 148.32 billion yen.


SHOWA AIRCRAFT: JCR Affirms BBB- Rating
---------------------------------------
Japan Credit Rating Agency (JCR) has affirmed the BBB- rating of
Showa Aircraft Industry Limited on the following bonds.

Issue Amount (bn) Issue Date Due Date Coupon
bonds no.3 Y3 / Aug. 20, 1999 / Aug. 20, 2003 / 2.93%

Rationale:

Showa Aircraft Industry Co. Limited is a truck assembler for
Hino Motors. It also manufactures specialty vehicles, aircraft
and honeycomb for aircraft. Showa Aircraft is also engaged in
real estate leasing business.

Its performance has been poor due to weak manufacturing and
hotel businesses. Facing the poor performance, Showa Aircraft
will pull out of the unprofitable truck cab assembly operation
while expanding environment equipment and catering (welfare
vehicles) business. It also plans to put forth the redevelopment
business using the real estate in Akishima, Tokyo.

The revenue is expected to decline in the current fiscal year
through March 31, 2003 due to reduction in truck cab assembly
and lowered rent revenue associated with sales of properties. On
the other hand, the pretax loss before extraordinary items will
likely drop, supported by reduced interest and depreciation
burdens. Showa Aircraft increased the interest-bearing debt from
fiscal 1996 through fiscal 2000, making large capital spending
for the real estate leasing business. It reduced the interest-
bearing debt sharply in fiscal 2001, using the operating cash
flows and proceeds from sales of properties.

The withdrawal from truck assembly will improve profitability of
the manufacturing division. Concerning the redevelopment
business, JCR will pay close attention to the future
developments as to whether or not Showa Aircraft can guarantee
cash flows that match the amount of investments. It plans to put
forth development of commercial and amusement leasing properties
in line with construction of infrastructure for roads. On the
other hand, it will take time for the hotel business to turn
profitable, although the loss decreased. Drastic measures need
to be taken for the hotel business.

At the end of 2002, Showa Aircraft Industry Co., Ltd had
negative working capital, as current liabilities were 20.73
billion yen while total current assets were only 18.65 billion
yen, according to Wright Investor's Service.


* O'Melveny & Myers LLP Partners with Watanabe Kokusai Law
----------------------------------------------------------
A new joint enterprise between law firms O'Melveny & Myers LLP
and Watanabe Kokusai Law Offices will further enhance their
ability to meet the needs of clients on matters involving issues
of Japanese and international law, the two firms announced
Monday.

"O'Melveny & Myers has long-term respect for and commitment to
the Japanese market," said Dale Araki, co-head of O'Melveny &
Myers' Tokyo office. "This joint enterprise is yet another
important step in our continued development of our Tokyo
office's leadership in providing international and Japanese
clients with quality counsel and representation in major
commercial areas of law.  Our firms' combined forces provide
clients with access to O'Melveny & Myers' global resources and
WKLO's local expertise in one office."

With this joint enterprise, the firms will leverage their
resources to meet the needs of clients that are concerned with
Japanese, regional, and global issues, such as mergers and
acquisitions, financing, real estate, and intellectual property
rights.  The joint enterprise offers clients the convenience of
an integrated offering of legal services in multi jurisdictional
transactions involving Japan.  The joint enterprise in Tokyo
includes more than 20 attorneys, all of whom are bilingual and
experienced in business dealings in Japan.

"This joint enterprise with O'Melveny & Myers is important to
our continuing vision of providing our clients with
international expertise and counsel in Western markets," said
Kosei Watanabe, WKLO's founder.  "Through this alliance we will
broaden our services and counsel for our clients, leveraging the
strengths of our respective firms."

O'Melveny & Myers LLP is one of the world's most successful and
enterprising law firms, and was among the first U.S.-based firms
to establish an office in Japan when it did so in 1987.   
O'Melveny & Myers has developed a preeminent practice in Asia,
representing clients in connection with corporate acquisitions,
financing, investments and joint ventures in Japan, including
both in-bound and out-bound mergers and acquisitions
transactions, real estate, entertainment, and intellectual
property matters.

Established in 1885, O'Melveny & Myers LLP maintains 13 offices
around the world.  One of the world's largest law firms,
O'Melveny & Myers' expertise spans virtually every area of legal
practice, including Mergers and Acquisitions; Capital Markets;
Banking and Finance; Entertainment and Media; Private Equity;
Copyright; Trademark and Internet; Patent and Technology; Trade
and International Law; Labor and Employment; Litigation; White
Collar and Regulatory Defense; Project Development and Real
Estate; Finance; Tax; and Bankruptcy.

WKLO is comprised of seven Japanese lawyers (bengoshi) licensed
to practice law in Japan.  Kosei Watanabe established WKLO in
1998.  Mr. Watanabe graduated from the University of Tokyo in
1982 and was admitted as a lawyer in Japan in 1984.  He obtained
his LL.M. from Harvard Law School in 1989, and was admitted to
the New York bar in 1990.  He worked in the New York office of
O'Melveny until 1992, whereupon he returned to Japan as a
partner of a major international Japanese law firm until
establishing WKLO.  WKLO engages in a general legal practice
with a particular emphasis on international corporate
activities, insolvency and creditor's rights, real estate and
finance, litigation and arbitration, and intellectual property
rights.



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


ASIANA AIRLINES: Giving 15% Discount to Busan Passengers
--------------------------------------------------------
Asiana Airlines Incorporated will give a 15 percent discount on
passengers who fly to Busan during the seventh Busan
International Film Festival, Asia Times said on Tuesday.

Passengers on board Asiana going to the November 14 to November
23 film festival can get the discounts when they go to the port
city of Busan and leave it between November 12 to November 28.

According to TCR-AP, Asiana Airlines had a negative working
capital at the end of 2000, as current liabilities were W1.47
trillion while total current assets were only W558.91 billion.


CHOHUNG BANK: Govt Determined to Offload Bank by Month's End
------------------------------------------------------------
The government is determined to sell its stake in Chohung Bank
by the end of this month through an auction involving foreign
and domestic bidders, the AFX-Asia News reported, citing Finance
and Economy Minister Jeon Yun-Churl.

The government wants to dispose of its 80.04 percent stake in
Chohung, but Chohung's union has threatened to go on strike
against the auction, which started last week, with a due
diligence study by four bidders reportedly from South Korea,
Japan, Taiwan and the US. (M&A REPORTER-ASIA PACIFIC, Vol. No.1,
Issue No. 219, November 5, 2002)


CHOHUNG BANK: Govt May Opt Not to Sell 80.04% Stake
---------------------------------------------------
Finance Minister jeon Yun-Churl said the government may choose
not to sell its 80.04 percent stake in Chohung Bank if the
pricing is not "appropriate," Yonhap reported.

He added that a final decision on the sale will be made after a
review of the bidders' proposals by the Public Fund Oversight
Committee comprising experts from the private sector.

His comment came amid rising public concerns that given current
low stock price levels, the bank may be sold at a bargain. (M&A
REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 219, November 5,
2002)


DAEWOO INTERNATIONAL: Unit Completes Restructuring Process
----------------------------------------------------------
Daewoo International Japan (DWJ), a unit of Daewoo
International, has completed its restructuring process, the
Korea Times said on Monday.

DWJ won approval from the Japanese court to run its own business
as it concluded that it normalized its operation.

The unit has headquarters in Tokyo and branches in Osaka and
Nagoya. Daewoo International saw its unit in the U.S. graduate
from a Chapter 11 workout program in March and its German branch
returned to normal operations in April.


DAEWOO MOTOR: Daewoo Commercial Vehicle Splits From Carmaker
------------------------------------------------------------
Daewoo Commercial Vehicle Corporation has separated from Daewoo
Motor Co. and launched its own operations on November 4, Dow
Jones reports.

Daewoo Motor finalized the separation process that was approved
by the South Korean court on September 30.

Daewoo Commercial Vehicle is Daewoo Motor's truck-making plant
in a southern city of Kunsan, and has an annual capacity of
20,000 units.

Daewoo Motor was declared bankrupt in November 2000.


HYNIX SEMICONDUCTOR: Investigates Missing US$100 Million
--------------------------------------------------------
Hynix Semiconductor Inc. will investigate the missing US$100
million "evaporated" from the sale of Hyundai Electronics UK
Limited (HEU), reports the Asia Times.

The report said the consolidated financial sheets showed the
sale of the semiconductor plant in Scotland for US$162 million
in May 2000 to Motorola.

An unnamed Company spokesman said files existed on US$100
million of that money being transferred to Hyundai Al Khafajy
(HAKC) in the Middle East, but there were no further information
on what happened to that money afterwards.


HYUNDAI MOTOR: Slashing 130 Administrative Staff
------------------------------------------------
Hyundai Motor group will lay off a total of 130 administrative
staff to cope with a possible market slump next year, through
its voluntary retirement program, Digital Chosun said on
Tuesday.

The Company will lay off 80 employees from Hyundai Motor and 50
at Kia Motors. The targeted workforce accounted for 0.7 percent
of the group's total number of white-color workers, at 19,648.

The Company had slashed 133 workers, or 5.3 percent, of the
total manpower at Rotem, the group's arm in rolling stock
production. The group acquired the unit in October.

The Company explained that the bonus package for the early
retirement program included a lump sum payment of salary worth
nine months.

According to Wright Investor's Service, at the end of 2001,
Hyundai Motor Company Limited had negative working capital, as
current liabilities were 17.88 trillion Korean Won while total
current assets were only 12.04 trillion Korean Won.


HYUNDAI MOTOR: Enters Deal With Mitsubishi and Hyundai Mobis
------------------------------------------------------------
Mitsubishi Motors Corporation (MMC), Hyundai Motor Corporation
(HMC) and Hyundai Mobis (HM) will enter into an agreement to
facilitate cooperation between the three companies. The new
cooperation agreement will replace the current relationship
between MMC and HMC based on an agreement dating back to 1982.

MMC, HMC, and HM have agreed in principle to seek to work on
projects relating to the mutual development of automotive
technology and products. Earlier this year, MMC and HMC,
together with DaimlerChrysler, established a global alliance for
a new state-of-the-art four-cylinder gasoline engine.

On top of this, MMC and HMC see opportunities to further
intensify cooperation with each other in areas such as engines,
transmissions, and basic automotive design technology. With the
addition of Hyundai Mobis to this agreement, future projects may
include cooperation on the design, development, production,
procurement, and sourcing of automotive parts and components in
Korea and Japan, as well as other locations. Specific projects
will be initiated on a case-by-case basis.

In connection with the new cooperation agreement, MMC has signed
an agreement with HM to sell approximately 3,750,000 shares of
HMC to HM, constituting all HMC shares held by MMC under the old
joint venture agreement. These shares represent approximately
1.71 percent of the total amount of HMC shares issued. The
agreement provides for the purchase by HM of these shares at a
target price of KRW36,750. The sale will occur between November
1, 2002 and March 15, 2003. MMC will realize approximately
USD$110 million in proceeds through the sale.

For a copy of the press release, click on http://www.mitsubishi-
motors.co.jp/inter/entrance.html


KIA MOTORS: U.S. Unit Sales Up 7%
---------------------------------
Kia Motors America, the U.S. unit of Kia Motors Corporation,
continued its pace to meet the Company's goal of a 10 percent
yearly sales increase despite slower sales during the month of
October.

The Company sold 17,960 vehicles in October, increasing Kia's
year-to-date sales to 203,976, a 7 percent overall increase from
the same period last year.

"While consumer confidence declined this past month, we're still
on track to meet our 10 percent sales increase for the year,"
said Peter M. Butterfield, Kia executive Vice President and
chief operating officer. "We're confident that the October
launch of our new Sorento mid-size SUV, and the new customers
we're now seeing at our dealerships, will enable us to meet our
2002 sales goals."

Kia Motors America is the U.S. sales, marketing and service arm
of Kia Motors Corp. in Seoul, South Korea.

MONTH OF OCTOBER YEAR-TO-DATE

Model       2002   2001   2002    2001
Optima      1,194  3,019  23,726  21,062
Rio         4,430  4,205  44,825  44,260
Sedona      2,214  2,620  33,954  9,932
Spectra     4,642  7,740  64,118  68,734
Sportage    3,316  6,939  34,948  45,436
Sorento     2,164  n/a 2, 405     n/a

Total       17,960 24,523 203,976 189,424

TCR-AP reported in October that Kia is saddled with 1.9 trillion
won in debts and unclear business conditions in the second half,
explaining difficulties in working out an agreement with the
labor, citing unnamed Company Executives.

DebtTraders reports that Kia Motor Corp's 9.375  percent bond
due in 2006 (KIAM06KRS1), trades between 115.110 and 115.675.
For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=KIAM06KRS1

For more information, visit
http://www.kia.com/


KOREA ELECTRIC: Unit Aims to Issue $200 Million in Bonds
--------------------------------------------------------
Korea Hydro and Nuclear Power Co, a unit of state-run Korea
Electric Power Corporation (KEPCO), plans a $200 million bond
issue to repay debt, Reuters said on Monday.

"Except for the amount of issuance, we've not finalized anything
yet," the official told Reuters.

The Company will select lead managers in December to shape up
details for the dollar denominated issuance.

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

DebtTraders reports that Korea Electric Power Corp.'s 8.250
percent bond due in 2005 (KORE05KRN1) trades between 112.504 and
113.066. For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=KORE05KRN1



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


AMSTEEL CORPORATION: Commission Waives Restructuring Condition
--------------------------------------------------------------
In accordance with Paragraph 4.1(b) of PN4 and Paragraph 8.14 of
the Listing Requirements of the KLSE, the Directors of Amsteel
Corporation Berhad (the Company) hereby announce that as of the
date hereof:

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

(2) as announced on July 12, 2002, the Securities Commission
    (SC) had approved the relevant proposals under the Proposed
    GWRS subject to certain conditions imposed by the SC.  
    Following an appeal made by the Company on the SC's earlier
    condition that the issues affecting the joint-venture
    operations of the Lion Group in the People's Republic of     
    China (PRC) must be resolved prior to the implementation of
    the Proposed GWRS (PRC Condition), the Company had on
    October 10, 2002 announced that the SC had waived the PRC        
    Condition subject to certain conditions.


ANGKASA MARKETING: Commission Cancels Restructuring Stipulations
----------------------------------------------------------------
In accordance with Paragraph 4.1(b) of PN4 and Paragraph 8.14 of
the Listing Requirements of the KLSE, the Directors of Angkasa
Marketing Berhad (AMB) hereby announce that as of the date
hereof:

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

(2) as announced on July 12, 2002, the Securities Commission
    (SC) had approved the relevant proposals under the Proposed
    GWRS subject to certain conditions imposed by the SC (SC  
    Conditions).  Following an appeal made by AMB to the SC on
    certain of the SC Conditions (Appeal), AMB had on October
    10, 2002 announced that the SC had approved the Appeal on
    the following:

    (a) The SC has waived its earlier condition that the issues
        affecting the joint-venture operations of the Lion Group
        in the People's Republic of China (PRC) must be resolved
        prior to the implementation of the Proposed GWRS subject
        to certain conditions;

    (b) The SC has waived its earlier condition that all loss
        making operations of the AMB Group, including companies
        operating in the PRC, must be divested within 2 years
        after the Proposed GWRS has been approved by all
        relevant parties subject to certain conditions; and

    (c) The SC has waived its earlier requirement for a
        moratorium on the disposal of 50% of the new AMB shares
        to be issued for the proposed acquisition of shares in
        Silverstone Berhad from certain vendors namely, Lion
        Corporation Berhad, Limpahjaya Sdn Bhd and Posim Berhad
        (Disposal Moratorium). Instead, the SC has approved
        AMB's proposal for the Disposal Moratorium previously
        imposed on the AMB shares to be received by Lion
        Corporation Berhad, Limpahjaya Sdn Bhd and Posim Berhad,
        to be imposed on Amsteel Corporation Berhad.


AOKAM PERDANA: Negotiations with 'White Knights' Continue
---------------------------------------------------------
In reference to announcement dated October 1, 2002, we wish to
inform that Aokam Perdana Bhd is in the midst of negotiations
with potential white knights.  Any requisite announcement
relating thereto as required pursuant to Paragraph 5.1(a) of PN4
would only be made upon finalization of the said negotiations.


AUSTRAL AMALGAMATED: Status of Restructuring Scheme Unchanged
-------------------------------------------------------------
Austral Amalgamated Bhd wishes to announce that there is no
change to the status of the Company's plan to regularize its
financial condition since its last announcement on October 1,
2002, in which the Securities Commission (SC) had, vide their
letter dated April 16, 2001, approved the Company's plan to
regularize its financial position (the Scheme). The details of
the SC's approval of the Scheme and the proposed modifications
of the Scheme were earlier announced by the Company on April 20,
2001, October 16, 2001, July 2, 2002 and September 2, 2002.


AUTOWAYS HOLDINGS: Finalizes Terms of Restructuring Scheme
----------------------------------------------------------
In compliance with the directive from the KLSE and the KLSE
Listing Requirements, AmMerchant Bank, on behalf of the Board of
Directors of AHB, wishes to announce that the Company together
with its advisers and vendors of the new businesses are in the
process of finalizing the terms of the relevant agreements to be
signed. The Company is also in the process of writing to the
Official Assignee to obtain their approvals on the proposed
restructuring scheme.


CHASE PERDANA: To Hold Court-ordered Creditors Meeting Soon
-----------------------------------------------------------
We refer to the announcement dated October 1, 2002 and wish to
announce that Chase Perdana Bhd is still finalizing the
Explanatory Statement and Circular.  The Company is expected to
convene the Court-Convened Meeting for creditors and
Extraordinary General Meeting for shareholders in due course.


CHASE PERDANA: Updates KLSE of Repayments on Defaulted Loans
------------------------------------------------------------
Further to an announcement made on October 1, 2002, Chase
Perdana Bhd wishes to relate the status of its default in the
repayment of both the principal and interest of all credit
facilities granted by Financial Institutions.  Details of these
loans may be viewed through this link:
http://announcements.klse.com.my/edms/edmsweb.nsf/ba387758ae3741
2b482568a300466fb6/8fcd04e12dc7d7f348256c64003b73d1/$FILE/Append
ix%20A-Sept%2002.xls


CSM CORPORATION: PN4 Status on KLSE Remains Unchanged
-----------------------------------------------------
On November 1, AmMerchant Bank Berhad (formerly known as Arab-
Malaysian Merchant Bank Berhad), on behalf of the Board of
Directors (Board) of CSM Corporation Bhd, announced there has
been no change to the status of CSM's plans to regularize its
financial position.

GENERAL LUMBER: Wants Winding Up Petition Settled
-------------------------------------------------
General Lumber Fabricators & Builders Bhd recently answered the
query letter the Kuala Lumpur Stock Exchange sent on November 1,
2002.  The company statement furnished KLSE this information:

(1) The date of presentation of the winding-up petition was on  
    September 5, 2002 and the matter is fixed for hearing on
    January 24, 2003 at Shah Alam High Court of Malaya.

(2) The financial and operational impact of the winding-up
    proceedings on the Group:

    As per Requisite Announcement (RA) made on October 15, 2002,
    the Group is finalizing its plan to regularize the financial
    condition and is expected to submit to the relevant
    authorities within two (2) months from the RA.  Therefore,
    we are unable to determine the operational and financial
    impact of the winding-up petition on the Group.

(3) The steps taken and proposed to be taken by the Group in
    respect of the winding-up proceedings:

    The Group has instructed the solicitors handling the case to
    negotiate with the petitioner towards a settlement
    agreement.  (This announcement is dated November 1, 2002)


KEMAYAN CORPORATION: To Regularize Finances via New Entity
----------------------------------------------------------
Public Merchant Bank Berhad, on behalf of Kemayan Corporation
Bhd, announced the Company had, on October 23, 2002, made a
requisite announcement in respect of a proposed restructuring
scheme to regularize the financial condition of the Company, via
a newly incorporated company, Rangkap Budi Sdn Bhd.

Barring any unforeseen circumstances, it is expected that an
application to the Securities Commission in relation to the
Proposed Restructuring Scheme will be submitted within one (1)
month from this November 1, 2002 announcement.

MALAYSIAN GENERAL: Restructuring Application Remains Pending
------------------------------------------------------------
In line with PN4 of the KLSE's Listing Requirements which
requires an announcement requiring the status of an affected
listed issuer's plan to regularize its financial condition be
made on the first market day of each month, AmMerchant Bank, on
behalf of the Company, wishes to announce that the decisions of
the relevant authorities, save for MITI's which was obtained on
October 23, 2002, on the Proposed Restructuring Scheme are still
pending.  


MGR CORPORATION: Reports No Status Change in Restructuring Plan
---------------------------------------------------------------
Further to our announcement dated October 10, 2002, AmMerchant
Bank Berhad (formerly known as Arab-Malaysian Merchant Bank
Berhad) on behalf of MGR Corporation Bhd wishes to announce that
there has been no change in the status of the Proposed
Restructuring Scheme as announced on June 3, 2002 and June 10,
2002 to regularize the financial condition of MGR.


PAN MALAYSIA: Tells KLSE Restructuring Plans Remain Unchanged
-------------------------------------------------------------
We wish to inform the Exchange that, since our last announcement
on October 1, 2002, there has been no change in the status of
the plans disclosed in the First Announcement of February 26,
2001, save for the changes disclosed in our announcements on May
2, 2001, July 2, 2001 and October 28, 2002, the announcements on
February 25, 2002, August 19, 2002, September 12, 2002 and
October 25, 2002 made by Commerce International Merchant Bankers
Berhad (CIMB) on behalf of the Company and the announcement on
July 9, 2002 made by CIMB on behalf of Pan Malaysia Capital
Berhad, a 73.89%-owned subsidiary of the Company.


PROMET BERHAD: Nears Signing Definitive Restructuring Pact
----------------------------------------------------------
Pursuant to the PN4 issued by the Kuala Lumpur Stock Exchange
(the Exchange), Promet Berhad refers to the announcement made on
October 29, 2002 that the Company has on the same day entered
into a Memorandum of Understanding with Damansara Indah Sdn.
Bhd. (DISB) to establish the framework of negotiations towards
the participation of DISB in a restructuring scheme of Promet
Berhad.

The Company is working towards a definitive restructuring
agreement and various sale and purchase agreements in respect of
the proposed assets injection.  (This announcement is made on
November 5, 2002)


RAHMAN HYDRAULIC: Request for Rescue Period Extension Pending
-------------------------------------------------------------
In accordance with Paragraph 4.1(b) of Practice Note No. 4/2001
(PN4) of the Kuala Lumpur Stock Exchange Listing Requirements,
Rahman Hydraulic Tin Bhd wishes to announce the status of the
Company's plan to regularize its financial condition since its
previous Monthly Announcement made on October 1, 2002.

On October 29, 2002, Public Merchant Bank Berhad, on behalf of
RHTB, announced that an application for an extension of time was
made on October 24, 2002 to the Kuala Lumpur Stock Exchange
(KLSE), seeking the KLSE's approval for an extension of up to
two (2) months (i.e. until December 29, 2002) for RHTB to comply
with the requirements under Paragraph 5.1(c) of Practice Note
4/2001 pursuant to the Listing Requirements of KLSE.

The Securities Commission (SC) had, by its letter dated October
28, 2002 received on October 30, 2002, approved the Proposed
Corporate Exercise.  Please refer to the announcement by Public
Merchant Bank Berhad dated November 1, 2002 for details of the
approval and the conditions set by SC.

As of the date of this announcement, the Company is awaiting
approval from the Foreign Investment Committee.  Any new
developments on the Company's plan to regularize its financial
condition will be announced in due course.  (This announcement
is dated 1 November 2002)


SASHIP HOLDINGS: Finalizing Restructuring Scheme Documents
----------------------------------------------------------
Further to the announcement on the implementation of the
Restructuring Scheme under Section 176 of the Companies Act,
1965 made on October 1, 2002, the Board of Directors of Saship
Holdings Bhd wishes to announce that the Company is finalizing
the relevant documents i.e. Trust Deed, Deed Poll, Restructured
Term Loan Agreement and the Subscription Agreement in relation
to the Scheme.


SISTEM TELEVISYEN: Holding EGM to Approve 'Corporate Proposals'
---------------------------------------------------------------
On behalf of the Board of Directors of Sistem Televisyen
Malaysia Berhad (TV3), AmMerchant Bank Berhad (formerly known as
Arab-Malaysian Merchant Bank Berhad) would like to announce the
status of TV3's plan to regularize its financial position:

On October 15, 2002, AmMerchant Bank Berhad had, on behalf of
TV3, announced that the Securities Commission (SC) had, by its
letters to Malaysian Resources Corporation Berhad and TV3 dated
October 9, 2002, approved the Corporate Proposals.

The Corporate Proposals is still subject to approvals from,
among others, the shareholders of TV3 via an extraordinary
general meeting to be convened.  (This announcement is dated
November 1, 2002)


TAI WAH: Rescue Talks Extended to Allow Debt Plan Formulation
-------------------------------------------------------------
In compliance with KLSE PN4, Tai Wah Garments Manufacturing
Berhad wishes to update the status of its proposed restructuring
exercise to regularize its financial condition for the month
ended October 2002.

The Company on October 16, 2002 extended the Memorandum of
Agreement entered with Tangkai Jaya Sdn Bhd, Hock Der Realty Sdn
Bhd, Setegap Jaya Sdn Bhd and parties acting in concert with
them (White Knight) for another four weeks for the formulation
of the proposed restructuring scheme of TWGB and the
implementation thereof.

Further to the announcements made on June 28, 2002 and July 2,
2002 in relation to the Proposed Disposals, the Securities
Commission (SC) by its letter dated October 29, 2002 approved
the Proposed Disposals and the proposed utilization of proceeds
from the Proposed Disposals.

Full details of the announcements in relation to the SC approval
have been made on October 30, 2002.


TECHNO ASIA: Announces Modification on Restructuring Plan
--------------------------------------------------------
Further to the announcement made on October 14, 2002, on behalf
of TAHB, AmMerchant Bank Berhad (formerly known as Arab-
Malaysian Merchant Bank Berhad) wishes to announce that there
are certain revisions to be made to the proposed restructuring
scheme of Techno Asia Holdings Bhd (Revised Scheme) as a result
of the revision in the valuation of the land banks belonging to
Kar Sin Berhad and its subsidiaries by the Securities Commission
(SC). The Revised Scheme will be submitted to the SC in due
course.

A further announcement will be made in due course once the
Revised Scheme has been finalized and accepted by the relevant
parties.  Save for the above, there are no other material
changes to the scheme.  (This announcement is dated November 1,
2002)


TELEKOM MALAYSIA: Withdraws Investment in GT
--------------------------------------------
Telekom Malaysia Bhd Chairman Tan Sri Muhammad Radzi Mansor told
the Business Times that the Company is withdrawing its
profitable investment in Ghana Telecommunications Co Ltd (GT)
because it can no longer adequately protect its investment
there.

According to Muhammad Radzi efforts are being taken to sell
Telekom's 30 percent stake in GT and recover the US$50 million
(US$1 = RM3.80) deposited with the Ghana Government. The
deposit, for an additional 15 percent stake in GT, had not been
refunded despite the scrapping of the deal in February this
year.

He said the Company is still waiting for a response from
Ghanaian officials to meet on the matter.

Telekom denied that it has offered to sell its 30 percent shares
in GT for US$200 million, adding that it has not filed any
arbitration proceedings against the Ghana Government in London.

Telekom said the cost of investment made in 1997 for the stake
is US$38 million.

Telekom said Ghana had in May agreed in principle to buy its 30
percent stake, held via Telekom's 85 percent-owned G-Com Ltd, a
Ghana-Malaysia venture. Telekom owns about 25.5 percent in GT.
The Ghana Government owns 70 percent.

Telekom lost management control in GT after the Government in
July "unilaterally terminated" the employment contract of the
managing director and appointed an interim management committee
to oversee day to day affairs.

The appointment of five other Malaysian former management
members of GT was also terminated, according to media reports in
Ghana.

Analysts said the Ghana operations contribute about RM57 million
in earnings a year. For the half-year ended June 30 2002, Ghana
Telecom contributed RM22.9 million to Telekom's earnings.

A Ghanaian media last week reported that GT will sign a new
management services agreement with Norwegian telecommunications
Company Telenor ASA.

Media reports also said Datuk Abdul Malik Mohammed, former
managing director of GT, returned to Ghana on the first week of
September for meetings to decide the valuation of Telekom
Malaysia's 30 percent stake in GT, which the Government had
agreed n principle to buy.

It is uncertain how many meetings have been conducted. Officials
of Telekom Malaysia and the Ghana Government were not
immediately available for comments.

According to the Western-African newspapers, GT had to pay about
RM239.4 million in fines over the past five years to the
National Communications Authority for failing to meet Ghana's
quality of service requirement set in an agreement.  (M&A
REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 219, November 5,
2002)


TENAGA NASIONAL: Settlement of UBS Suit Seen by Year's End
----------------------------------------------------------
A US$86.9 million claim against Tenaga Nasional Bhd is not
expected to reach trial stage next year, as the power firm is
keen on settling the suit by year's end, Bloomberg says.

Citing the Business Times, the news agency said the suit filed
by UBS Warburg in London in February is likely to go on trial by
July next year.  Bloomberg, however, says that meetings between
representative from both parties have been constructive toward
an early settlement.

UBS Warburg claims the company failed to honor part of an
agreement relating to a US$500 million bond sale in 1997.  

In related news, the Kuala Lumpur Stock Exchange rapped the
company on Monday for taking more than three months to inform
investors of the suit and potential liability arising from the
dispute.


WING TIEK: Approval on Proposed Debt Plan Remains Pending
---------------------------------------------------------
Further to the submission made to the Securities Commission (SC
submission), the Board of Wing Tiek Holdings Bhd wishes to
inform that the Company is still awaiting the outcome of the SC
submission.

An informal meeting was held on October 23, 2002 with the Scheme
Creditors to brief them on the Proposed Corporate and Debt
Restructuring Scheme.  All but three of the Scheme Creditors
attended the briefing.



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


ASIAN TERMINALS: Board Elects Richard Barclay as President
----------------------------------------------------------
The Board of Directors of Asian Terminals Inc. has elected
Richard Barclay as the Company's new Executive Chairman and
President replacing Roger Davies, and John Buckley as Chief
Executive Officer (CEO) and Executive Vice President, AFX Asia
reported.

Buckley and Colin Childs occupied the seats left vacant with the
resignations of Davies and Genya Iwasaki on August 6 and June 19
respectively.

  
BENPRES HOLDINGS: Will Resume Debt Payments by December
-------------------------------------------------------
Benpres Holdings Corporation will resume debt payments by
December with or without creditors' agreement, Bloomberg
reported Tuesday, citing Chief Financial Angel Ong said.

The utilities and media Company and its creditors failed to
agree on a debt reorganization plan before debt payments were
due to resume in this month.


EAST ASIA: Q302 Net Loss Widens to PHP795.849 Million
-----------------------------------------------------
East Asia Power Resources Corporation posted a net loss of
795.8349 million pesos in the three months to September, versus
a loss of 140.335 million pesos a year earlier, AFX Asia
reported Monday.

The widened net loss was due to the impact of lower billing
rates and a higher depreciation expense.

In the nine months to September, net loss stood at 676.043
million pesos, compared with the year-earlier 2.076 billion.

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


MUSIC CORPORATION: Enters Bankruptcy Petition in U.S.
-----------------------------------------------------
A United States Bankruptcy Court will hear Music Corporation's
reorganization plan on December 6, AFX Asia said on Tuesday,
citing a disclosure filed by the Company with the Philippine
Stock Exchange.

The court in the State of California is hearing an involuntary
Chapter 11 Bankruptcy Petition filed against unit Music
Semiconductors by Tality Corporation.

The bankruptcy petition had been due to concerns by Tality that
Music would transfer its semiconductor assets to the
Philippines.

Music said in its disclosure it is finalizing business plans for
2003, but gave no details.

The shareholders meeting scheduled for December 9 will be moved
to January 17 to allow the Company's President, Michael Burton,
to attend the U.S. hearing.

In October, TCRAP reported that the Board of Directors of Music
Corporation (MUSX) has decided to abandon the proposed group-
restructuring plan approved by the Board of Directors and the
stockholders on September 12, 2001 and October 04, 2001,
respectively.

The Board has set the Annual Stockholders' Meeting of MUSX on
December 9, 2002. The venue and time of meeting will be
announced in due course. The close of business on November 8,
2002 has been fixed as the record date for the determination of
the stockholders entitled to notice of such meeting and any
adjournment thereof, and to attend and vote threat.


NATIONAL POWER: Posts Results of IPP Contracts Review
-----------------------------------------------------
The Department of Energy (DOE), Power Sector Assets and
Liabilities and Management Corp. (PSALM) and Mirant Corp.
announced that they have successfully resolved, through
bilateral agreement between the Philippine Government and the
firm, all outstanding issues on the power contracts entered into
by the National Power Corp. (Napocor) with Mirant.

This as the Government undertakes the second phase review of
power contracts entered into by Napocor with the independent
power producers (IPPs). Under the Republic Act 9136 or the
Electric Power Industry Reform Act (EPIRA), Napocor's assets and
power contracts were transferred to PSALM.

President Gloria Macapagal-Arroyo has mandated the DoE, PSALM
and two other agencies, National Economic and Development
Authority (NEDA) and the Department of Justice (DOJ), to work
out a plan of action following the results of the initial review
of IPP contracts.

"This proves that the Government and the private sector, in a
climate of cordial one-on-one dialogue, can work together to
achieve mutually agreeable solutions. The Government has said
time and again that it will not unilaterally cancel or abrogate
these contracts in order to preserve its reputation for honoring
the sanctity of contracts. By talking rationally with the IPPs,
we have accomplished our goal of easing the financial burden of
Napocor and lowering the power costs while preserving investors'
confidence," Energy Secretary Vincent S. Perez, Jr. said.

"Mirant's existing contracts with Napocor are legally sound and
will remain in effect. The Philippine Government asked that we
work with them to resolve power price and reliability concerns,"
Mirant international senior vice-President Rick Kuester said.

"Under the voluntary agreement, Mirant's operational position in
the Philippine is reaffirmed and strengthened, while future
energy costs for the Philippines will be curtailed. Mirant looks
forward to continuing our operations in the Philippines under
this mutually beneficial agreement," Mr. Kuester added.

As a result of the bilateral agreement with Mirant, PSALM
President Edgardo M. del Fonso said the Government expects to
save approximately $10 million per year on the purchase of power
from Mirant's Pagbilao plant under the existing build-operate-
transfer (BOT) contract. This will result in a reduction of
approximately $10 million in annual pre-tax revenue, Mirant
said.

Mirant and the Government also agreed to amend the contracts for
the Navotas Gas turbines plants, which are currently being
operated by Mirant under BOT scheme.

The Navotas Gas Unit 1-3 contract were among the 11 IPP
contracts that passed the review but were  found to have some
remedial financial issues that need to be addressed to assure
that the Government and the public are not being unduly
prejudiced. The Navotas Gas Plant Unit 4, on the other hand, was
among the six contracts that have no legal or financial issues.

The agreement would allow Mirant to sell the energy output of
the Navotas plants to other customers over an extended period of
time. According to Mr. Del Fonso, instead of the Government
paying Mirant a total of $16.7 million under the existing
contracts, Mirant will pay the government $12.1 million under
the new arrangement.

"The arrangement on the Navotas plants is a net benefit of $28.8
million to the Government and relieves Napocor of the obligation
to purchase power from the Navotas plants," Mr. Del Fonso said.

PSALM estimated that the bilateral agreement will result in
total nominal savings to the Government of between $277 million
to $387 million in stranded contract costs.

The agreement reached with Mirant will not preclude the
Government from exploring further areas of potential cost
reduction related to Mirant's IPPs, subject to mutual consent of
both parties.

Mirant entered the Philippines in 1989 and invested in the
development of new power generation. Filipino consumers and
industry continue to benefit fro the electricity that Mirant
power plants generate.

Mirant currently operates seven separate power plants in the
Philippines with a combined generation of approximately 2,000
megawatts.

For a copy of the press release, visit http://www.doe.gov.ph/


NATIONAL POWER: Cutting Loan Size to US$250 Million
---------------------------------------------------
National Power Corporation (Napocor) has launched its one-year
bridging loan, cutting the deal's size to US$250 million from
US$400 million, Reuters said on Monday.

Citibank, Salomon Smith Barney, Credit Lyonnais, Standard
Chartered Bank and Sumitomo Mitsui Banking Corporation are the
arrangers of the loan, which is guaranteed by the Philippine
government.

The power Company also aims to raise US$750 million in a bond
offering later this year, backed by a partial guarantee from the
Asian Development Bank, that should cover the balance of the
state energy firm's financial requirements for 2002 and
refinance the bridging deal.


NATIONAL POWER: Expects to Charge Lower Electricity Prices
----------------------------------------------------------
National Power Corporation (Napocor) expects to soon charge
lower electricity prices set by the Energy Regulatory Commission
(ERC), reports the Business World.

The lower rates will only be temporary, while the power firm
prepares a new petition for higher rates to be submitted to ERC.

ERC has agreed to review the petition in exchange for Napocor's
withdrawal of a suit before the Court of Appeals questioning the
lower power prices.

The Commission ordered Napocor to cut rates by seven centavos
per kilowatthour (kWh) starting September 26.

ERC also pegged Napocor's new generation charge at PhP2.48/kWh
for Luzon; PhP3.20/kWh for Visayas; and PhP1.44/kWh for
Mindanao.

On September 6, ERC revised the decision and directed Napocor to
further lower generation rates to PhP2.19/kWh for Luzon;
PhP2.08/kWh for Visayas; and PhP1.02/kWh for Mindanao.

Napocor questioned the ERC order before the appellate court,
noting that it projects to incur revenue losses of up to PhP12
billion a year as a result of the reduced rates.

Napocor Vice-President and General Cousel Rainier B. Butalid
said the Company will withdraw the court petition and instead
file a new rate petition with ERC.


PHILIPPINE LONG: Holding Crucial Board Meeting on November 5
------------------------------------------------------------
The Board of Directors and shareholders of the Philippine Long
Distance Telephone Co. (PLDT) had a crucial board meeting on
November 5, demanding that President and Chief Executive Officer
Manuel V. Pangilinan update them about controlling stakeholder
First Pacific Co. Ltd.'s plans to divest its stake in the
Company, the Philippine Star said Tuesday.

This as PLDT sees third quarter earnings to double or tripled
from 500 million pesos from the last year to between P1.1 to
P1.5 billion this year, brought about largely by higher
contributions from wireless subsidiary Smart Communications,
Inc.


PHILIPPINE LONG: Posts 3Q02 Financial Results
---------------------------------------------
Philippine Long Distance Telephone Company (PLDT) announced that
its consolidated net income surged to Pesos 4.2 billion during
the first nine months of 2002. Consolidated EBITDA rose by 16
percent during the same period, from Pesos 29.4 billion last
year to Pesos 34.2 billion this year.

EBITDA margin remained strong at 58 percent of revenues versus
55 percent last year. Consolidated revenues grew by 10 percent
to Pesos 58.9 billion during the period. Ratio of cash operating
expenses to revenues improved to 39 percent from 42 percent due
to strong revenue growth of Smart Communications, Inc. (Smart)
and reductions in cash operating expense levels at PLDT Fixed.
Ratio of capital expenditures to revenues improved to 19 percent
from 37 percent, reflecting more efficient capital spending.

PLDT also announced that it has on a year-to-date basis paid
down debts of its Fixed Line business by US$82 million, in line
with the objectives set out in its liability management program.

The driver for much of PLDT's robust growth continues to be the
strong performance of Smart, which substantially increased its
subscriber base and posted significant growth in revenues,
EBITDA, and net income. Smart is also expected to pay cash
dividends to PLDT in December
of 2002.

PLDT's fixed line business maintained its dominant position with
over 2.1 million subscribers and a market share of almost 70
percent. PLDT's fixed line business remained a key strength of
the PLDT Group and continued to provide strong and stable cash
flows despite a modest decline in revenues for the third quarter
of 2002.

Wireless: Still leading the way

PLDT's wireless subsidiary, Smart, remains the key driver of
PLDT's strong performance during the first nine months 2002.

PLDT's wireless group kept its market leadership position in
terms of subscriber base. As of September 30, 2002, the combined
GSM and analog cellular subscribers of Smart and Pilipino
Telephone Corporation (Piltel) reached almost 8 million, growing
by 2.3 million subscribers or 41 percent over the combined base
of 5.6 million subscribers last year. This represents a 57
percent share of the total wireless market in the Philippines.

On a stand-alone basis, Smart's GSM subscriber base increased
from 4.0 million subscribers as of 30th September 2001 to 5.9
million subscribers as of 30th September 2002, an increase of
1.9 million subscribers. For the third quarter alone, net adds
for Smart totaled close to 650,000 new subscribers. This
maintains Smart's position as the leading GSM cellular provider
in the country with a market share of 44 percent.

Piltel's own GSM subscriber base under the brand name "Talk
N'Text" also showed positive growth. "Talk N'Text" subscribers
reached over 1.7 million as of 30th September 2002 from
approximately 1.2 million subscribers last year, representing an
increase of about 500,000 subscribers. Piltel remains the third
largest GSM provider in the country.

Smart's revenues rose by almost Pesos 8 billion or 51 percent to
Pesos 23.7 billion in the first nine months of 2002 from Pesos
15.7 billion for the same period in 2001. EBITDA showed strong
growth at 59 percent from Pesos 8.2 billion last year to Pesos
12.9 billion this year.

EBITDA margins remained over 50 percent for the third quarter of
2002. Net income surged to Pesos 3.8 billion for the period
ending 30th September 2002 compared with Pesos 2.8 billion last
year representing an increase of 36 percent. Smart's growth was
principally anchored on its growing subscriber base, the
reduction of its subscriber acquisition costs, and the
stabilization of its Average Revenue Per User (ARPU) levels.

Revenues from cellular data services, which include all SMS and
text-related services as well as value-added services doubled to
Pesos 8.6 billion in 2002 from Pesos 4.3 billion in 2001.

The growth in data services of Smart was enhanced by aggressive
and innovative value-added services through Smart zed, Smart
Money and interactive tie-ups with various multi-media
providers. Smart's 64K super SIM card boosted subscriber takes
up while it continued to maximize the use of these value-added
services that help sustain ARPU.

Complementing the strong growth in revenue, net income and
subscribers was Smart's efficient capital spending.

As of September 30, 2002, Smart's capital expenditures stood at
Pesos 5.4 billion, which puts it on track to meet its 2002
capital expenditure target of Pesos 9.0 billion. This represents
a Pesos 10 billion reductions in capital expenditures as
compared with 2001, which reached a high of Pesos 19 billion
capex spent. As a percentage of revenues, Smart's capital
expenditures for 2002 is envisaged to reach only 30 percent of
its projected 2002 revenues compared with almost 80 percent of
revenues in 2001.

Fixed Line: Overcoming a challenging market

Overall fixed line revenues showed an expected decline, except
for revenues from data and other network services, which grew
during the period under review. Total revenues from PLDT's fixed
line business decreased by Pesos 1.4 billion or 4 percent to
Pesos 33.6 billion in the first nine months of 2002 from Pesos
35 billion in the same period last year. PLDT's fixed line
business posted a net income of Pesos 1.8 billion for the first
nine months of the year.

Revenues from data and other network services of the fixed line
business rose by over 17 percent, from Pesos 3.5 billion to
Pesos 4.1 billion in 2002. Continued growth is expected from
this segment of the business as demand for these services
increase and as PLDT extends its market leadership in the data
business.

Local exchange service revenues showed a slight decrease of 3
percent from Pesos 16.4 billion in 2001 to Pesos 15.9 billion in
2002 primarily due to the market's shift towards the prepaid
variant of PLDT's phone service. International long distance
revenues decreased by 13 percent from Pesos 9 billion in 2001 to
Pesos 7.9 billion in 2002 due to the combined effects of lower
international settlement rates and lower volumes. National long
distance revenues likewise decreased by 11 percent from Pesos
6.6 billion last year to Pesos 5.8 billion this year principally
due to cheaper alternative forms of communication such as
cellular text messaging and e-mail.

Management continues to aggressively implement aggressively its
program to reduce cash operating expenses, contain capital
expenditures, and improve operational efficiencies. For the
first nine months of 2002, cash operating expenses decreased to
Pesos 11.7 billion compared with Pesos 12.8 billion during the
same period last year. PLDT expects to be able to achieve its
full year target to reduce cash operating expenses to below
Pesos 16 billion. In addition, PLDT expects to reduce further
its capital expenditures to under Pesos 7 billion for 2002,
representing approximately 16 percent of revenues compared with
21 percent last year.

Operational efficiencies on the other hand continue to show
improvement as the number of fixed lines in service per employee
increased from 161 last year to 169 this year.

For a copy of the press release, visit
http://bankrupt.com/misc/tcrap_PLDT1105.pdf


PHILIPPINE LONG: Management on Track to Meet FY02 Targets
---------------------------------------------------------
Commenting on the September 30 results, Manuel V. Pangilinan,
President and CEO of PLDT said, "The Company's solid performance
during the first nine months of 2002 coupled with the completion
of our liability management program confirm that the
Fundamentals of our business are strong, and our outlook moving
forward remains positive."

"Notwithstanding the uncertainties the Company faces at the
shareholder level, our strong performance should dispel any
doubt that we are distracted from our priorities or our focus.

Management's commitment towards meeting our targets, maintaining
our leadership position in all our lines of business, and
delivering the best service to our customers remains as firm as
ever," Pangilinan concluded.

For further information, please contact:
Annabelle L Chua, Anna V Bengzon and Menardo Jimenez, Jr
Tel No: 816-8213 Tel No: 816-8024 Tel No: 816-8468
Fax No: 844-9099 Fax No: 810-7138 Fax No: 893-5174

For more information, click on
http://bankrupt.com/misc/tcrap_PLDT1105.pdf


PHILIPPINE LONG: Cuts Debt by US$82 Million in September
--------------------------------------------------------
The Philippine Long Distance Telephone Co (PLDT) reduced the
debt of its fixed line business by US$82 million at the end of
September as part of its liability management program, AFX Asia
reports.

The reduction was made possible by its use of improving cash
flows to pay down debt. It did not give its current debt level.

The refinancing of US$1.3 billion in debt maturing 2002 to 2004
helped the Company's third quarter earnings.

"After the successful completion of PLDT's liability management
exercise, the focus and priority now of PLDT management are on
debt reduction," it said.

In the third quarter of this year, PLDT signed a US$149 million
refinancing facility with German bank KfW and issued 350 million
in global notes maturing in 2002 and 2012.

The Company also also secured a US$145 million multi-currency
term loan, which it will use to refinance loans falling due in
2003.



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


NEPTUNE ORIENT: Unit Sells Loss-making Operations for US$4.50M
--------------------------------------------------------------
APL Logistics, a unit of Neptune Orient Lines Ltd., has sold the
assets and operations of its consumer direct fulfillment
operation, known as APL Direct Logistics, to NewRoads, based in
Greenwich, Connecticut.

Terms of the sale mean NewRoads assumes the lease and management
of APL Direct Logistics' facility in Hebron, Kentucky and the
associated fulfillment customer contracts.

APL Logistics Chief Executive Officer Hans Hickler said that the
operation had been losing money, and the operating loss had
impacted US$7.6 million this year to date on APL Logistics'
parent Company Neptune Orient Lines (NOL).

The e-logistics operation had been sold for US$4.5 million,
which was a further loss for the Company of US$4 million, on top
of the operating loss.

"The fulfillment operation came as part of our purchase of GATX
Logistics last year. It has not performed well under our
structure and is an activity that is not part of our strategy as
now formulated," Hickler said. "NewRoads is a Company with
decades of experience and strong core skills in providing cost
effective fulfillment services and this operation will fit well
with them."

APL Logistics' parent, Singapore-based NOL, had announced its
intention to sell the fulfillment operation earlier this year,
expressing its desire to deliver improved bottom-line results
and to allow APL Logistics to focus more strongly on its core
competencies. These core competencies include warehousing,
transportation management and strategic third-party logistics
services that provide end-to-end supply chain services enabled
by innovative IT tools that help customers to manage their
inventory from factory floor to customer door.

"With this sale, we will be reviewing any possible impairment to
goodwill arising thereof and an appropriate announcement would
be made if it were material," said NOL Group Chief Financial
Officer, Lim How Teck.

"Throughout 2002, NewRoads has continued to demonstrate a
sustained ability to grow both its client portfolio and
services," said Fred Forsyth, NewRoads President and Chief
Executive Officer. "We are in a strong position, both
organizationally and financially, to acquire facilities and
other services to satisfy the growing needs of our current
clients as well as to provide additional capabilities and
capacity for new clients. NewRoads' depth of experience and
breadth of capabilities enable us to deliver significant
improvement in fulfillment-related business process services.
The Hebron facility adds outstanding talent, technology and
processes to our offering."

APL Logistics www.apllogistics.com is the supply-chain
management arm of Singapore-based NOL Group, which is engaged in
logistics and global transportation. APL Logistics has 4,500
employees around the world and operates in 55 countries. It is a
sister Company of APL, the global container transportation
provider.

NewRoads www.newroads.com provides business process outsourcing
solutions of fulfillment, customer care and supply chain
execution to deliver products, information requests and rebates
to customers who order over the telephone, via the Internet, and
by mail or catalog. By combining best-practices solutions and
services with its nationwide network of more than 20
distribution and call centers, NewRoads efficiently and cost
effectively delivers its clients' products and enhances their
customers' brand buying experience. Based in Greenwich, Conn.,
NewRoads clients' include Restoration Hardware, Godiva
Chocolatier, American Eagle Outfitters, Avon and Procter &
Gamble.

Media inquiries:
APL Logistics
Scott Dailey +1.510.272.8011, or
Sarah Lockie +65.6371.5022

NewRoads
Christine Mushinsky +1.410.604.1572


NEPTUNE ORIENT: Appoints Connal Rankin as Board Member
------------------------------------------------------
Neptune Orient Lines (NOL) has appointed banking and human
resource specialist Connal Rankin to its Board of Directors.

NOL Chairman, Cheng Wai Keung, said he was delighted to announce
the Board had appointed Rankin, who is the Group General
Manager, Group Human Resources of HSBC Holdings, with effect
from today.

Connal Rankin (aged 60) began his banking career with HSBC as a
trainee more than forty years ago and has held numerous
international postings, including in Brunei, Australia, Canada,
the Philippines as well as Hong Kong. He was the General Manager
and CEO (Singapore) of HSBC Singapore for five years from 1995
and is currently based in London.

Cheng said, " Rankin brings to the Board not just his skills as
an international banker but his skills as head of human
resources for the HSBC Group. This specialist skill further adds
to the wealth of talents the Board can draw upon."

Cheng said Rankin would also sit on the Executive Resource and
Compensation Committee.

Media inquiries
Sarah Lockie
+65.6371.5022
sarah_lockie@nol.com.sg


SEMBCORP INDUSTRIES: Schedules EGM on November 13
-------------------------------------------------
The Extraordinary General Meeting of the members of SembCorp
Industries Ltd. will be held at The Theatrette, 60 Admiralty
Road West, Singapore 759947 on November 13, 2002 at 10.20 a.m.
(or as soon thereafter following the conclusion or adjournment
of the extraordinary general meeting of the Company to be held
at 10.00 a.m. on the same day and at the same place) for the
purpose of considering and, if thought fit, passing, with or
without any modifications, the following resolution which will
be proposed as an Ordinary Resolution:

ORDINARY RESOLUTION

That the proposed sale (the "Proposed Sale by the Company of
375,000,000 ordinary shares of S$0.05 each in the capital of
Singapore Food Industries Limited (the "SFI Sale Shares held by
its wholly-owned subsidiary, Singapore Technologies Industrial
Corporation Ltd STIC, to be undertaken by way of a renounceable
preferential offer for sale (the "Preferential Offer by the
Company of the SFI Sale Shares to the shareholders of the
Company be and is hereby approved and that approval be and is
hereby given to the Directors to:

(1) (a) provisionally allocate for sale the SFI Sale Shares to
holders of ordinary shares of S$0.25 each in the capital of the
Company SembCorp Industries Shares in the Register of Members of
the Company and Depositors who have SembCorp Industries Shares
entered against their names in the Depository Register
maintained by The Central Depository (Pte) Limited CDP as at the
close of business on a date to be determined by the Directors
(the "Books Closure Date Shareholders on the basis of a minimum
of 0.1921578 to a maximum of 0.2059464 SFI Sale Share for every
one existing SembCorp Industries Share held by Shareholders on
the Books Closure Date, fractional entitlements to be
disregarded; and

(b) offer the SFI Sale Shares for sale to the Shareholders at
the price of S$0.70 in cash for each SFI Sale Share, payable in
full on application and on such terms and conditions as the
Directors may determine, including the following:

(i) no provisional allocation of the SFI Sale Shares shall be
made in favour of, and no renounceable provisional letters of
allocation shall be issued or sent to, Shareholders having
registered addresses outside Singapore and who have not, at
least five Market Days (as defined in the Listing Manual of the
Singapore Exchange Securities Trading Limited) prior to the
Books Closure Date, provided to the Company or CDP, as the case
may be, addresses in Singapore for the service of notices and
documents or to Shareholders as the Directors, in their absolute
discretion, consider should be precluded from such allocation by
virtue of any securities legislation of a foreign country
applicable to them, under which legislation the Company has not
sought registration or such other compliance for the allocation
and offer of the SFI Sale Shares (the "Overseas Shareholders;

(ii) the entitlements to the SFI Sale Shares otherwise
attributable to Overseas Shareholders but for the provisions of
sub-paragraph (i) above, be disposed of in a manner and on such
terms as the Directors may determine, distributing the net
proceeds (if any) of such disposal to and among such Overseas
Shareholders, in proportion to their respective shareholdings in
the Company as at the Books Closure Date, provided that if the
amount to be distributed to any such Overseas Shareholder is
less than S$10, it shall be retained for the benefit of the
Company;

(iii) in connection with the disposal referred to in sub-
paragraph (ii) above, the Directors be and are hereby authorized
to provisionally allocate the SFI Sale Shares representing the
entitlements of Overseas Shareholders in the name of any person
as the Directors may nominate for the purpose of disposal of the
entitlements to the SFI Sale Shares of Overseas Shareholders;

(iv) to allocate and offer for sale the SFI Sale Shares not
taken up pursuant to the provisional allocation of the SFI Sale
Shares or which represent fractional entitlements disregarded in
accordance with the terms of the Preferential Offer to satisfy
applications made by Shareholders for any excess SFI Sale Shares
to such Shareholders, provided that any allocation of SFI Sale
Shares to Shareholders who have applied for excess SFI Sale
Shares shall be made in priority to any application for excess
SFI Sale Shares made by Singapore Technologies Pte Ltd, a major
shareholder of the Company, which has undertaken to (aa)
purchase all of the SFI Sale Shares which will be allocated to
it under the Preferential Offer and (bb) purchase all SFI Sale
Shares not purchased, or applied for, by the other Shareholders;
and

(v) the SFI Sale Shares shall be sold under the Preferential
Offer (aa) fully paid, (bb) free from all liens, equities,
charges, encumbrances, rights of pre-emption and any other third
party rights or interests of any nature whatsoever and (cc)
together with all rights attached thereto as of September 10,
2002 being the date of the announcement of the Proposed Sale and
the Preferential Offer (the "Announcement Date and thereafter
attaching thereto (including the right to any dividends or other
distributions declared, made or paid by SFI on or after the
Announcement Date); and


(2) the Directors of the Company and each of them be and are
hereby authorized to complete and do, and/or procure STIC to
complete and do, all such acts and things (including, without
limitation, to execute all such documents and to approve any
amendment, alteration or modification to any document as may be
required under or pursuant to the Proposed Sale and the
Preferential Offer) as they or he/she may consider necessary,
desirable or expedient to give effect to this Resolution as they
or he/she may deem fit.

Notes:
1. A member of the Company entitled to attend and vote at the
Extraordinary General Meeting is entitled to appoint a proxy to
attend and vote in his stead. A proxy need not be a member of
the Company.

2. The instrument appointing a proxy must be lodged at the
registered office of the Company at 9 Bishan Place #08-00,
Junction 8, Singapore 579837, not less than 48 hours before the
time appointed for the Extraordinary General Meeting.


SEMBCORP INDUSTRIES: Proposes to Sell SFI Shares
------------------------------------------------
On September 10, 2002, SembCorp Industries Limited announced a
proposed sale (the Proposed Sale of 375,000,000) ordinary shares
of $0.05 each SFI Sale Shares in the capital of Singapore Food
Industries Limited SFI, representing approximately 75 percent of
the issued share capital of SFI, at the price of S$0.70 per SFI
Sale Share.

The Proposed Sale will be undertaken by way of a renounceable
preferential offer (the Preferential Offer) of SFI Sale Shares
to SembCorp Industries shareholders, pro rata to their
respective shareholdings in the Company. Under the Preferential
Offer, all entitled SembCorp Industries shareholders will be
entitled to purchase between:

a minimum of 0.1921578(1) to a maximum of 0.2059464 SFI Sale
Share for every one ordinary share of $0.25 each in the capital
of the Company (each, a "SembCorp Industries Share(2)held as at
5.00 p.m. on November 25, 2002, being the expected date on which
the Transfer Books and the Register of Members of the Company
will be closed in order to determine the entitlements of
SembCorp Industries shareholders under the Preferential Offer
(the Books Closure Date), depending on the total number of
issued SembCorp Industries Shares as at the Books Closure Date,
fractional entitlements to a SFI Sale Share to be disregarded.

Notes:

(1) In the announcement of the Proposed Sale and the
Preferential Offer on September 10, 2002, the minimum ratio was
stated as 0.1922490 SFI Sale Share. The change in the minimum
ratio is due to the increase in the total number of vested and
exercisable options to subscribe for new SembCorp Industries
Shares granted pursuant to share option schemes/plans
implemented by the Company between September 10, 2002 and
October 15, 2002.

(2) These figures are only indicative as they are based on the
total number of SembCorp Industries Shares in issue as at
October 15, 2002. The actual offer ratio will be based on the
total number of SembCorp Industries Shares in issue as at the
close of business on the Books Closure Date.

The Proposed Sale and the Preferential Offer is subject to the
approval of SembCorp Industries shareholders at an extraordinary
general meeting EGM of the Company to be held on November 13,
2002. The circular convening the EGM has been despatched to
SembCorp Industries shareholders.

On February 28, 2002, 106,950,000 warrants Warrants entitling
the holders thereof Warrantholders to subscribe for 106,950,000
new SembCorp Industries Shares were issued. In order to
determine definitively the issued share capital of the Company
so that the offer ratio of SFI Sale Shares to each SembCorp
Industries Share under the Preferential Offer may be fixed, the
Warrants should not be exercizable from 12.00 p.m. on November
13, 2002, up to and including November 25, 2002 and the Register
of Warrantholders would need to be closed for this purpose.

Warrantholders who wish to exercise all or part of their
Warrants in order to be eligible to participate in the
Preferential Offer in respect of the new SembCorp Industries
Shares to be issued pursuant to such exercise, should exercise
their Warrants, and deliver the relevant exercise notice(s) and
other required documents and the subscription moneys, in
accordance with the terms and conditions of the Warrants before
12.00 p.m. on November 13, 2002.

NOTICE OF CLOSURE OF REGISTER OF WARRANTHOLDERS

The Register of Warrantholders will be closed from 12.00 p.m. on
November 13, 2002, up to and including November 25, 2002 (the
"Warrant Closure Period. The Warrants will not be exercizable
during the Warrant Closure Period. Closure of the Register of
Warrantholders during the Warrant Closure Period is necessary to
determine definitively the issued share capital of the Company
in order to fix the offer ratio of SFI Sale Shares to SembCorp
Industries Shares under the Preferential Offer.



===============
T H A I L A N D
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TPI POLENE: Only Court Can Remove Administrator, Says Prachai
-------------------------------------------------------------
Prachai Leophairatana, the restructuring administrator of TPI
Polene, decried Monday a plan by the creditors steering
committee to oust him from his post extra-judicially.

According to a Bangkok Post report, Mr. Prachai claims that any
change in administrators would need formal approval from the
Central Bankruptcy Court.  Mr. Prachai, founder of the indebted
Thai Petrochemical Industry group, is overseeing TPI Polene's
rehabilitation plan involving debts of US$1.2 billion.

Last week, the creditors' steering committee, led by the German
development bank Kreditanstalt fur Wiederaufbau and Bangkok
Bank, announced that a vote would be held to remove the
administrator for failure to comply with the rehabilitation
plan.  The group cited the company's failure to meet the
deadline for a $180-million capital increase.

The steering committee said that changing plan administrators
would require the approval of creditors holding two thirds of
the company's total debts.  Committee members insist the
rehabilitation plan clearly states different conditions under
which a change in administrators is possible without having to
involve the court.

But Mr. Prachai said Monday that any failure to meet plan
deadlines was not the fault of the plan administrator.  Instead,
he said, actions by the creditors themselves had contributed to
delays in raising capital.

The Bangkok Post has also learned that the steering committee is
specially discontented with Mr. Prachai's failure to implement
the sale of a 77% shareholding in the company to Siam City
Cement.  Siam City Cement, a unit of Swiss-based Holcim, had
offered $375 million for the TPI Polene stake in a deal agreed
in principle in February.

But Mr. Prachai said that after the preliminary agreement with
Holcim had been made, the steering committee moved to negotiate
directly, making amendments without consulting him.

These amendments are now subject of a petition filed by Mr.
Prachai with the Central Bankruptcy Court.  The petition also
requests permission to meet the capital increase requirement
through a public offering.  The court is scheduled to rule on
the request on Nov 20.

"Both the creditors and I cannot make a move until after the
court ruling. And the creditors have no right to vote to remove
the plan administrator. That authority belongs to the court,"
Bangkok Post quoted Mr. Prachai as saying Monday.

Mr. Prachai said that among the disputed amendments was a clause
to maintain existing personal guarantees made by the founding
Leophairatana family worth six billion baht, including 1.5
billion from Mr. Prachai himself.  Under the original sale
agreement, the personal guarantees would be withdrawn following
the share acquisition by Siam City Cement.

Another change would revoke the right of Mr. Prachai to
repurchase petrochemical units of TPI Polene, including a Rayong
plant making low-density polyethylene and ethylene vinyl
acetate.  The amended deal would also require Holcim to maintain
at least a 51% stake in TPI Polene, even once outstanding debt
was reduced to under $200 million, the paper said.

Mr. Prachai insists that the new amendments were biased against
him and his family, and that Holcim had set the terms at the
request of the creditors' steering committee after the
preliminary agreement had been signed.

TPI Polene posted third quarter consolidated revenues of 4.3
billion baht compared with 10.2 billion the year before. It
booked a net loss of 1.38 billion baht, compared with net
profits of 5.9 billion the year before, largely due to foreign-
exchange losses, the paper said.


TPI POLENE: Public Offering Next Best Option to Hike Capital
------------------------------------------------------------
TPI Polene Plc is now going to consider a public offering to
hike its capital, said senior executive vice president Orapin
Leophairatana, who disclosed that a previous share subscription
with Siam City Cement has already legally expired.

Ms. Orapin said the share subscription entered in February this
year expired on June 30.  Had the plan pushed through, Siam
City, a subsidiary of Swiss firm Holcim AG, would have taken a
75% stake in TPI for US$375 million.

Ms. Orapin told AFX-Asia that in the wake of the bid's expiry,
TPI is mulling a plan to raise capital via a public offering.
Under the firm's restructuring plan, she said capital raising
can be done by ways of a public offering, rights issue, private
placement or strategic partner.

The vice president, meanwhile, admitted that the company sent a
letter on October 31 to all of its scheme creditors in order to
oppose the proposal to oust the company from the position of the
plan administrator.

"The company has complied with the Master Restructuring
Agreement.  We have never defaulted on debt repayment while the
delayed equity raising was not caused by us," she said at a news
conference.

TPI Polene has been paying interest every month since January
2000.  It has also completed its first principal repayment of
US$25 million on June 30, she said.  According to her, the delay
in equity raising was not the company's fault, as creditors had
already spent 9 months in negotiation with Holcim.

"The company was not allowed to participate in the negotiation
with Siam City Cement or its parent, Holcim, since the agreement
was made," Ms. Orapin said.

The existing Master Restructuring Agreement requires not less
than 66 percent of creditors' approval to dismiss the plan
administrator.  It also requires a Court endorsement, she said.

TPI Polene had previously filed a petition to the Central
Bankruptcy Court for an approval on public offering, AFX-Asia
said.  On September 10, the Central Bankruptcy Court said it
would oversee talks between TPI Polene and its creditors on ways
to increase capital, either by way of a private placement or a
public offering.

On October 10, however, talks were called off after both sides
failed to reach an agreement.   The court set a date of November
20 for further talks.


TPI POLENE: Trims EBITDA Estimate Due to Competition, Cost
----------------------------------------------------------
Restructuring cement maker TPI Polene Plc lowered early this
week its EBITDA forecast to 4 billion baht from 4.7 billion
baht, despite maintaining sales projections of 17.5 billion
baht.

According to AFX-Asia, the company, in cutting its forecast,
took into account the impact of price competition and additional
costs from debt restructuring.

"The price competition seen earlier this year, together with
extra expenses stemming from debt restructuring will pressure
EBITDA," senior vice president for finance and accounting
division Prasert Ittimakin said at a news conference recently.

In the first nine months, EBITDA stood at 2.03 billion baht,
AFX-Asia said.  Mr. Prasert said, however, that increasing
demand will mean cement sales forecasts this year of 17.5
billion baht will be met.  In 2001, TPI Polene's sales were 13
billion baht.

Mr. Prasert said the current price of mixed cement is now 60-70
baht per bag compared with prices previously as low as 20-25
baht.  He said the company expects its results to improve in the
fourth quarter from the third quarter as demand for cement
continues to rise while there is no price competition.

However, he could not say whether the company will turn to a
profit in the fourth quarter as it also depends on foreign
exchange losses.  Most of the company's debt is denominated in
foreign currencies, of which 65-70 percent is in dollar terms,
13-14 percent in euro terms and 7-8 pct is in yen terms, he
said.




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

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