TCRAP_Public/030107.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

            Tuesday, January 7, 2003, Vol. 6, No. 4



GLOBE INTERNATIONAL: Revises Earnings Guidance Anew
GOODMAN FIELDER: Panel OKs Burns Philp Takeover Bid
NEWCREST MINING: Withdraws from Croydon Gold Joint Venture
NEW TEL: PwC Administrators Recommend Liquidation
STARTRACK COMMUNICATIONS: Debt Plan Faces Rough Sailing in AGM

C H I N A   &   H O N G  K O N G

CIL HOLDINGS: Shares Suspended Due to Pending Winding-up Suit


DAIEI INC: Director Hirayama May Resign This Year
HITACHI LIMITED: Launches Hard Disk Drive (HDD) Storage Firm
SEIBU DEPARTMENT: May Reduce Capital by 90%
SOKAN KK: Golf Course Applies For Rehabilitation


CHOHUNG BANK: FOC to Select Primary Negotiation Partner
CHOHUNG BANK: Government Likely to Finish Sale by February
DAEWOO CORPORATION: Indian Court Rules on Unit
DAEWOO SECURITIES: KDB Acquires Hungarian Unit
HANBO STEEL: Posts Record Sales in 2002

HYNIX SEMICONDUCTOR: Additional Funding Program Unfair, Infineon
HYUNDAI INVESTMENT: No Decision Yet Regarding Sell-Off


AOKAM PERDANA: Debt Plan Deadline Extension Denied
AUTOWAYS HOLDINGS: Restructuring Scheme Awaits Receiver's Nod
KUB MALAYSIA: Answers KLSE Query on Unit's Receivership
OMEGA HOLDINGS: Faces Delisting from Kuala Lumpur Bourse
SIN HENG: Posts Details of Restructuring Plan

TECHNO ASIA: Group Remains in Default of RM900M in Bank Loans
ZAITUN BERHAD: PN4 Status Remains Unchanged

* KLSE Begins De-listing Proceedings Against 16 PN4 Firms


MANILA ELECTRIC: ERC May Decide Rate Petition Soon
NATIONAL POWER: Sees P40B Net Loss in 2002
PHILIPPINE LONG: Denies Blocking PT&T Traffic Report
PHILIPPINE LONG: Continues to Serve Clients
PHILIPPINE LONG: Clarifies "Dispute Splits PLDT Union" Report

PHILIPPINE LONG: Workers Block Entrance to Davao Offices
PHILIPPINE LONG: Labor Secretary Orders Strikers Back to Work
UNION CEMENT: Redeems P950M Long-Term CP's


AZTECH SYSTEMS: Liquidates Subsidiary
CAPITALAND LIMITED: Dormant Unit Enters Liquidation
KIM ENG: Units Enter Voluntary Liquidation
NATSTEEL LTD: Mandatory Conditional Cash Offer by 98 Holdings
VAN DER HORST: Review of Financial Performance


BANKCHAK PETROLEUM: Government Revealing Rescue Plan Next Week

     -  -  -  -  -  -  -


GLOBE INTERNATIONAL: Revises Earnings Guidance Anew
The preliminary unaudited financial results for the six months
to December 31, 2002 are currently being prepared. However, the
weaker than anticipated trading activity of Globe International
Limited (Globe) businesses, and other factors set out below,
have necessitated a revision of the earnings guidance provided
on October 25, 2002.

Globe now expects that the pre amortisation after tax earnings
will be approximately $4.1m or 1.0 cent per share for the six
months to December 31, 2002, which compares to the 1.7 to 2.2
cents per share per the previous guidance. The lower earnings
are principally derived from actual revenues in November and
December being 14.5% lower than assumed in the previous guidance
forecasts. Post amortisation earnings per share will be
approximately $0.7m or 0.15 cents per share.

Since the issuance of the prior guidance a number of specific
factors in each of Globe's key markets have impacted on the
results for the six months ended 31 December 2002, as follows:


An unanticipated further deterioration in trading activity
significantly impacted Globe's at once footwear and skate
hardware business in December.


Globe is providing $1.4m for the potential non-recovery of
receivables from distributors, mainly in Japan.


The late receipt of inventory from offshore suppliers resulted
in a loss of business and a deferment in delivery of indent
sales to early calendar 2003.

The recently appointed CEO, Mel Sutton, with the senior
management team, is completing a review of all of Globe's
businesses to establish a clear growth agenda for the future. As
a result of the review and significant changes to be
implemented, Globe is currently unable to provide a guidance of
its earnings to 30 June 2003. The directors of Globe expect to
issue revised earnings guidance for the full year as soon as it
is available but no later than at the release of the six monthly
results in early March.

Globe enters calendar 2003 as a profitable company with a strong
balance sheet. Globe's proprietary and licensed brands are very
well recognised, remain relevant and provide a sound basis for
future growth. In particular there are significant opportunities
to further leverage key brands into growth markets, particularly
in apparel and surf footwear.

For more information please contact

Mel Sutton, CEO  +613 8671 1724

GOODMAN FIELDER: Panel OKs Burns Philp Takeover Bid
The Takeovers Panel of Australia will give due course to the
objections raised by Goodman Fielder, but it won't stop Burns
Philp & Co. from sending formal bidder's statement to
shareholders, Dow Jones Newswires said late last week.

Goodman, Australia's largest food company, had argued that the
more than AU$2 billion bid of Burns Philps contained conditions
that do not comply with Australia's Corporations Act and
accepted market practice.  The company had asked the panel to
remove these conditions and have others clarified.

Burns Philp bought 14.9% of Goodman Fielder and announced its
bid for the company in mid-December.

NEWCREST MINING: Withdraws from Croydon Gold Joint Venture
Gold Aura Limited (Gold Aura) advises that Newcrest Mining
Limited has withdrawn from the Croydon Project Joint Venture
effective January 9, 2003, with full ownership reverting back to
Gold Aura.

During the Joint Venture Newcrest has spent approximately $2
million on exploration. Gold Aura considers that the work has
been of a high standard and the company will benefit from the
data produced when future exploration is undertaken. The Croydon
Goldfield is one of Australia's major historical gold producing

The exploration has delineated a new gold zone and a
considerable number of highly prospective areas elsewhere within
the project area remain untested.

In the Gilded Rose Prospect area, situated within the north
eastern part of the project area, a preliminary inferred
resource estimate by Gold Aura has identified a high grade gold
zone of 200,000 tonnes at 7.0 g/t Au (approximately 50,000
ounces contained gold), located within a lower grade zone of 2.0
million tonnes at 2.05 g/t Au containing approximately 130,000
ounces gold.

To the north west of Gilded Rose Prospect, Gold Aura has
identified a circular feature from geophysical data, which when
considered in light of the known geology, could be interpreted
as a major volcanic eruptive centre or caldera. As most major
calderas develop post extrusion collapse structures and as these
are often gold mineralised, the circular feature offers an
attractive target for drill testing.

Deep drilling has identified values of up to 11.3 g/t Au in
narrow quartz veins at depths up to 330 metres in the Croydon
Project area. This enhances the potential for significant deep
mineralisation to be developed within major structures in other
parts of the project area.

Gold Aura will now evaluate the gold zone discovered to
determine its full potential and seek a new joint venture to
evaluate the untested targets.

K Chapple

NEW TEL: PwC Administrators Recommend Liquidation
The Administrators of New Tel (ASX:NWL) (NASDAQ: NWLL), Phil
Carter and Greg Hall of PricewaterhouseCoopers today announced
they would hold the second meeting of Creditors to decide the
company's future pursuant to Section 439A of the Corporations

Mr. Carter said the meeting would be held on Monday 13 January
2003 and that the Administrators' recommendation would be to
liquidate the company.

He said the main purpose of the meeting was to consider the
Administrators' report about the business, property, affairs and
financial circumstances of New Tel.

This meeting will also require creditors to consider the
Administrators' opinion on whether it would be in the creditors'
interests for:

(a) the company to execute a Deed of Company Arrangement;
(b) the administration to end;
(c) the company to be wound up.

"While it is possible to seek an extension of time for convening
this meeting, we have not done so as no viable proposal for a
Deed of Company Arrangement has been presented," Mr. Carter of
PricewaterhouseCoopers said.

"In addition, our enquiries to date have indicated a number of
matters which we consider deserve more extensive investigation,
utilising the powers available to the liquidator.

"It is therefore our view that the creditors' best interests
will be served by the company being placed into liquidation
without delay," Mr. Carter said.

In the event of liquidation, creditors will be required to
consider whether a Committee of Inspection is required and, if
so, elect members of the Committee of Inspection.

PricewaterhouseCoopers has set up a 1300 number to provide New
Tel Creditors with basic information about the Administration.
The number is 1300 554 469. Creditors can also refer to


The creditors meeting will be for creditors only. Phil Carter
will hold a media briefing immediately after the conclusion of
the Creditors meeting. Details in relation to the media briefing
will be provided by Andrew Head of PwC Communications.

For media enquiries, contact:

Andrew Head
Communications, PricewaterhouseCoopers
Tel: (02) 8266 2111 or Mobile: 0411 268 001

STARTRACK COMMUNICATIONS: Debt Plan Faces Rough Sailing in AGM
Startrack Communications' annual meeting today may highlight a
shareholders revolt, as some investors have openly questioned
the scheme being backed by management to keep the company

According to The West Australian, a major issue to be tackled
today is a plan to hand over the bulk of the company's assets to
creditors to keep it in business.  Although BDO Consultants has
declared the proposal fair and reasonable, some shareholders
have questioned it because of the links between Startrack, its
major creditors and shareholders, and Startrack Africa.

One shareholder told the paper many people who had invested
substantial sums in Startrack feared they would be left with
nothing should the proposal proceed, while other investors would
enjoy significantly better exposure to the potential upside of
the technology.

Startrack provides satellite tracking and communications
services between the west coast of Africa and eastern New
Zealand via its base station in Western Australia.  Despite
minor deals to supply satellite tracking gear to oil producers
and racing yachts, Startrack has been unable to secure
sufficient customers to ensure it can meet future debt
obligations, while its share price has slumped to just 0.6 cent,
the report said.

Its main creditors have subsequently offered to cancel more than
AU$4 million in convertible note debt, which matures in March,
in return for ownership of local subsidiary Startrack Australia.
Startrack will subsequently hold only its 10 percent stake in
African affiliate Startrack Africa, which has in turn vowed to
use Startrack's satellite support services for another 12
months, guaranteeing AU$700,000 in fees to the company, The West
Australian said.  Startrack Africa was established in late 2000
as part of the global rollout of Startrack's business.

Startrack Australia's main creditor is Weston Investments, which
holds about 7 percent of Startrack in addition to AU$4 million
in convertible note debt.  Weston is wholly owned by South
African miner JCI Gold, which in turn owns 36 percent of
Startrack Africa. JCI affiliate New Mining Corp holds another 10
per cent of Startrack Africa, of which South African investors
hold 44 percent, the paper said.

Startrack Communications chief executive Johan Haasbroek told
The West Australian, some shareholders had expressed
disappointment about the proposal, but stressed there were no
realistic alternatives.

"The JCI group provided the funding to keep the Australian
business alive while we tried to get the technology into the
market place. To safeguard their investment, they needed some
assurances," he told the paper in an interview.

C H I N A   &   H O N G  K O N G

CIL HOLDINGS: Shares Suspended Due to Pending Winding-up Suit
The Stock Exchange of Hong Kong suspended trading of CIL
Holdings Ltd. yesterday due to a pending announcement related to
the results of the winding-up petition filed against it.
According to AFX-Asia, CIL Holdings last traded at HK$0.03.

In November, the company disclosed that net losses for the year
to June period had ballooned to HK$142.3 million from just
HK$4.2 million a year earlier. The heavy losses contrasted
improving sales of HK$56.6 million from HK$47.5 million.  The
operating loss amounted HK$140.4 million against a profit of
HK$26.5 million a year earlier.

Total indebtedness of the group is HK$318 million and all of
which comes 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.

Its major creditors include Ambang Jaya Sdn Bhd and Angkasa
Marketing (Singapore) Pte Limited, wholly owned subsidiaries of
Amsteel Corporation Berhad.

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.


DAIEI INC: Director Hirayama May Resign This Year
Supermarket chain operator Daiei Inc. may fall after reports
that Executive Director Takashi Hirayama may step down by
shareholders' meeting in May, according to Dow Jones. Hirayama
is the key person in the retailer's revival efforts.

Reports said Hirayama would leave to take responsibility for the
inability to produce clear results. His exit would come before a
three-year business plan is fulfilled.

HITACHI LIMITED: Launches Hard Disk Drive (HDD) Storage Firm
Hitachi, Ltd. announced that it has created a new hard disk
drive (HDD) storage company with the most advanced technology,
the most extensive product line, and the greatest global reach
in the industry.

The new company, named Hitachi Global Storage Technologies,
which comprises the HDD operations of Hitachi and IBM, is
headquartered in San Jose, California. The new company is 70
percent owned by Hitachi, with the remainder of the shares held
by IBM. Hitachi, however, will assume full ownership at the end
of 2005. IBM will have no involvement in the management of
Hitachi Global Storage Technologies.

Hitachi and IBM reached a framework agreement in June last year
under which Hitachi would purchase IBM's HDD operations for
US$2.05 billion. Since then, the two companies reached
agreements regarding all related matters, including contracts
for the supply of HDDs to IBM, treatment of intellectual
property and the provision of services. Based on these
agreements, and a revision in operating bases and personnel
covered by this acquisition, the deal closed on December 31,

As an entity specializing in HDDs, Hitachi Global Storage
Technologies will bring together the mutually complementary
qualities of both its founding companies. Hitachi boasts
cutting-edge R&D capabilities, such as in perpendicular magnetic
recording technology. Having invented the HDD, IBM has extensive
technological expertise backed by an industry-leading number of
patents, and top-level product development capabilities. With an
expanded product lineup, increased production capacity, and
enhanced global development, production and sales networks as a
result of this integration, Hitachi Global Storage Technologies
is in an extremely competitive position.

"The completion of this deal changes everything in the storage
industry -- no one else has the depth of knowledge and the
breadth of technology that we have to offer," said Dr. Jun
Naruse, chief executive officer, Hitachi Global Storage
Technologies. "Customers will see new HDD technologies reach the
marketplace more quickly than ever before, helping them meet
their growing needs for versatile, robust and economical storage

The company will provide the most extensive line of HDDs in the
industry, covering every major segment from consumer-focused 1-
inch to enterprise-level 3.5-inch products. The worldwide sales
and support capabilities of Hitachi Global Storage Technologies
will provide customers with unequaled access to products and

Hitachi Global Storage Technologies aims to use its world-class
R&D capabilities and state-of-the-art technologies to be a
driving force behind further advances in the HDD format. The new
company is determined to be a leader in the HDD industry by
developing products and offering support in a timely manner to
meet various needs in the IT market. HDDs are expected to be in
increasing demand for use in mobile terminals, PCs, servers and
other information appliances, as well as emerging consumer
electronics market, like car navigation systems, set-top boxes
and other products.

Powerful hardware is a vital element of efforts to bolster the
Hitachi Group's solutions delivering abilities. Hitachi also
sees the opportunity to capture many synergies with Hitachi
Global Storage Technologies in the Hitachi Group's consumer
electronics operations, including information appliances. In the
field of redundant array of independent disks (RAID) storage
systems, in particular, Hitachi hopes to develop worldwide
storage solutions that take advantage of Hitachi Global Storage
Technologies' powerful HDDs.

One of Hitachi's overarching goals is to leverage its
competitive edge in HDDs to exercise leadership in the IT
industry by building the infrastructure needed to support a
ubiquitous information society.

Hitachi Global Storage Technologies commenced operations on
January 1, 2003, integrating IBM's HDD production and marketing
bases with Hitachi's U.S. HDD sales division. On April 1, plans
call for Hitachi, Ltd.'s Data Storage Systems Division, which
operates an HDD manufacturing facility in Kanagawa Prefecture,
to be integrated with the Japanese subsidiary of Hitachi Global
Storage Technologies by taking advantage of Japan's corporate
split law. Plans are also in hand for all Hitachi's HDD
production and sales locations, including sales operations in
Europe and Asia, to join Hitachi Global Storage Technologies.

Profile of the New Company (As of April 1, 2003)

Company name: Hitachi Global Storage Technologies, Inc.
(Headquartered in the U.S.)

Stockholders' Equity: US$2.029 billion (on establishment)

Top management team: Yoshiro Kuwata, (non-resident) Chairman of
the Board (Executive Vice President and Director, Hitachi, Ltd.)
Jun Naruse, CEO (Managing Officer, Hitachi, Ltd.) Douglas Grose,
COO (formerly general manager of IBM's Storage Technology
Division) Ryuichi Yagi, CFO (Managing Officer, Hitachi, Ltd.)

Development locations: A total of 5 bases in the U.S. and Japan

Manufacturing locations:  8 bases in 7 countries -- the U.S.,
Japan, the Philippines, Singapore, Mexico, China and Thailand

Sales locations:  Bases in 13 countries, including the U.S.,
Japan, England, Germany, France, Singapore, Taiwan and China

Main products: 3.5-, 2.5-, 1.8- and 1.0-inch HDDs

Employees: Approx. 21,500 (Hitachi, approx. 6,800; IBM, approx.

Fiscal year end: December 31

The Troubled Company Reporter-Asia Pacific reported that 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.

Hitachi, Ltd.,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.

Hitachi America, Ltd. (U.S.)
Matt Takahashi, +1-650-244-7902
Hitachi Global Storage Technologies, Inc.

Kim Nguyen, +1-408-256-7589
Hitachi, Ltd. (Japan)
Yasuo Hirano, +81-3-3258-2057
Hitachi Asia Ltd. (Singapore)
Yuji Hoshino, +65-6231-2522
Hitachi Europe Ltd. (U.K.)
Kantaro Tanii, +44-(0)1628-585379

SEIBU DEPARTMENT: May Reduce Capital by 90%
Seibu Department Stores Limited, currently under corporate
rehabilitation, has unofficially asked its shareholders to
reduce its capital by 90 percent, The Yomiuri Shimbun reported
on Friday.

This will make it easier for Seibu to receive financial
assistance from banks with which it has dealings.

Shareholders include the Seiyu Ltd., which runs a major general
merchandise store chain, Credit Saison Ltd., a non-bank Company
of Saison Group, and the Saison Group.

In December, the firm requested Mizuho Corporate Bank and Credit
Saison to provide additional 150 billion yen to 200 billion yen
in financial assistance.

SOKAN KK: Golf Course Applies For Rehabilitation
Sokan KK, which has total liabilities of 24 billion yen,
recently applied for civil rehabilitation proceedings, according
to Tokyo Shoko Research. The golf course has 10 million yen in
capital and is located at Kouga-gun, Shiga, Japan.


CHOHUNG BANK: FOC to Select Primary Negotiation Partner
The Public Fund Oversight Committee will assemble a general
meeting next week to select the primary negotiation partner for
the sale of Chohung Bank (CHB), Asia Times reported on Tuesday.

The move reflected the recent decision by the transition team of
President-elect Roh Moo-hyun to allow the incumbent government
to handle the sale of the bank.

CHOHUNG BANK: Government Likely to Finish Sale by February
The sale of the government's 80.04 percent stake in Cho Hung
Bank is likely to be completed by the end of February this year,
when the new government is to be inaugurated, Digital Chosun
reports, citing Deputy Prime Minister Jeon Yun-churl.

The Minister added that that the government has injected 2.7
trillion won in public funds in the bank, and that it is the
government's obligation to recover the rescue fund.

DAEWOO CORPORATION: Indian Court Rules on Unit
The Delhi High Court on Friday has restrained Daewoo Corporation
from making any attempt to change the statutory auditors of its
unit Daewoo Motors India Limited (DMIL), PR Newswire reports.

Daewoo Corporation wrote on December 13 to DMIL to pass the
resolution in the AGM appointing S R Batliboi as the auditors of
DMIL in place of V K Malik and Associates.

Objecting to this, ICICI counsel Arun Jaitley contended this was
an attempt to whitewash certain irregularities highlighted by
the present auditors.

DAEWOO SECURITIES: KDB Acquires Hungarian Unit
The Korean Development Bank (KDB) has acquired Hungary's Daewoo
Bank Rt from Daewoo Securities Co., reported the MTI news agency
and AFX Asia said on Thursday.  The report did not mention how
much KDB paid for the acquisition.

KDB has also granted a US$10 million loan to Daewoo Bank so that
it can extend its credit portfolio, the report said. KDB will
change Daewoo Bank's name in the first half, it added.

The Troubled Company Reporter Asia-Pacific reported in November
that Hana Bank would revive plans to acquire Daewoo Securities
Co. by March, to expand its brokerage business after its merger
with SeoulBank is completed in December.

The brokerage, which is up for sale, posted a wider net loss of
36.7 billion won in the three months ending September 30,
compared with 11 billion won loss based on preliminary figures
announced in October.

HANBO STEEL: Posts Record Sales in 2002
Hanbo Steel reached record performance last year with sales of
437 billion won (US$364.89 million), PR Newswire reports.

The local steel maker sold 1.19 million tons of steel bars and
70,000 tons of billets in 2002. Ordinary profit before
depreciation hit 70.6 billion won, up 24 per cent from 2001's
record. Its output for last year included 1.23 million tons of
steel goods and 1.18 million tons of rolled steel products.

The Troubled Company Reporter-Asia Pacific reported in November
that Officials of AK Capital, which is selected to acquire the
ailing Hanbo Steel, said that the two sides are in disputes
regarding sale of additional land in which a thermal plant is

Hanbo and AK Capital signed an MOU (memorandum of understanding)
in March 2002 to sign a final deal by August. However, the
agreement has been delayed due to differences on acquisition
methods and size.

HYNIX SEMICONDUCTOR: Additional Funding Program Unfair, Infineon
Germany's Infineon Technologies said it is deeply concerned over
the Hynix Semiconductor creditors' decision on its additional
funding program, which could aggravate unfair market competition
in the global DRAM chip markets, Digital Chosun reports.

On December 30, US firm Micron Technology Inc. strongly
protested the Korean creditor banks' agreement to provide a
debt-for-equity conversion measure for Hynix.

An unnamed Micron spokesman said that the agreement on a debt-
rescheduling plan, worth several trillion won for Hynix, runs in
a clear violation of the free-trade regulations advocated by the
World Trade Organization and the US administration.

HYUNDAI INVESTMENT: No Decision Yet Regarding Sell-Off
The Korean government is still undecided on the sale of Hyundai
Investment Trust & Securities and two other Hyundai financial
units, AFX Asia said last week, citing the Financial Supervisory

Earlier, the Korea Herald reported that Prudential Financial of
the United States may sign a memorandum of understanding (MoU)
to acquire the ailing Hyundai Investment Trust & Securities Co.
and Hyundai Investment Trust & Management Co. by March.

The report said Prudential has however decided not to acquire
another Hyundai financial unit, Hyundai Securities Co.

"Talks are ongoing for the sale of Hyundai Investment Trust &
Securities and (other Hyundai financial units), but no specific
decision has been made yet," the FSC said in a statement.


AOKAM PERDANA: Debt Plan Deadline Extension Denied
We wish to announce that the KLSE has, by their letter dated
January 3, 2003, rejected Aokam's application for an extension
of time of 4 months from the submission date of December 19,
2002 to April 18, 2003 to obtain the necessary approvals from
the regulatory authorities on its corporate proposals.

AUTOWAYS HOLDINGS: Restructuring Scheme Awaits Receiver's Nod
The previous Board of Directors of AUTOWAY wishes to announce
that the Company, Kumpulan Liziz Sdn. Bhd. and Greenleaf
Resources Sdn. Bhd. have finalized the proposed restructuring
scheme. It is currently pending the approval of the Official
Receiver to submit to the Securities Commission. An announcement
on the proposed restructuring scheme will be made in due course.

KUB MALAYSIA: Answers KLSE Query on Unit's Receivership
This refers to the announcement on December 31, 2002 and the
Kuala Lumpur Stock Exchange's query dated January 2, 2003:

(1) KUB utilized its own internally generated funds for the
    advance of up to RM40.3 million to VisionScape Sdn Bhd. As
    of September 30, 2002, KUB has made a provision of RM8.9
    million in respect of its investment in VisionScape. The
    Company is currently reviewing the carrying value of the
    assets of VisionScape and shall make further provision in
    compliance with MASB 23 of Malaysian Accounting Standard
    Board in relation to the impairment of the asset value.

(2) The appointment of the R&M is not expected to have any
    material impact on the operations of the Group as
    VisionScape's contribution to the Group's revenue for the
    third quarter ended September 30, 2002 represent only 0.2%
    or RM0.74 million to the total revenue of KUB Group totaling
    RM339.35 million. Further, VisionScape's total assets
    represent 2.9% or RM35.52 million of the total assets of KUB
    Group totalling RM1.21 billion as at September 30, 2002.

(3) The R&M was appointed with a view of recovering the
    outstanding sum of RM29,795,455.00 from VisionScape arising
    from the Debenture dated March 9, 2000. The steps to be
    taken by the R&M among others are to evaluate and dispose
    off the assets of VisionScape through a tender exercise. The
    proceeds received from the tender exercise will be utilized
    to repay KUB the outstanding sum advanced to VisionScape.

                     Jalan 65C
                     Off Jalkan Pahang Barat
                     53000 Kuala Lumpur
                     Tel: 03-421 4121
                     Fax: 03-423 3090

OMEGA HOLDINGS: Faces Delisting from Kuala Lumpur Bourse
Omega Holdings Bhd wishes to announce that the Kuala Lumpur
Stock Exchange has on 3 January 2003 served a Show Cause Notice
to the Company whereby the Company has been accorded 14 days by
the Exchange to make written representations to the Exchange on
why its securities should not be removed from the Official List
of the Exchange.

In the event that the Exchange decides to de-list the Company,
the securities of the Company shall be removed from the Official
List of the Exchange upon the expiry of 14 days from the date of
notification of the decision to de-list the Company or upon such
other dates as may be specified by the Exchange.

In the event that the Exchange decides not to de-list the
Company, other appropriate action/penalty(ies) may be imposed
pursuant to paragraph 16.17 of the Listing Requirements of the

The Company had announced the Requisite Announcement ("RA"),
pursuant to paragraph 5.1 (a) of Practice Note 4/2001 of the
Listing Requirements of the KLSE on 31 December 2002. In the RA,
the Company announced that the Company had entered into new
Restructuring Scheme Agreement with Milan Auto (M) Sdn. Bhd. and
have agreed to undertake and implement the following exercises:

     (i) Proposed Acquisition of Omega by Newco;
    (ii) Proposed Scheme of Arrangement;
   (iii) Proposed Transfer of Business;
    (iv) Proposed Acquisition of MAC by Newco;
     (v) Proposed Waiver from the MTO;
    (vi) Proposed Special Issue of Shares
   (vii) Proposed Offer For Sale of Settlement Shares by
  (viii) Proposed Offer For Sale of Shares by MA;
     (x) Proposed Listing Transfer; and
    (xi) Proposed Disposal of Omega Group.

The main purpose for the Proposed Restructuring Scheme is to
restructure the debts of Omega to enable Omega to recapitalise
and regularise its financial position and to comply with the
KLSE PN4 requirements to prevent Omega from being delisted from
the KLSE which will result in the shareholders of Omega not
being able to hold a listed share either in Omega or Newco.

SIN HENG: Posts Details of Restructuring Plan
Further to the announcement made on December 31, 2002, on behalf
of the Special Administrators (SA) of Sin Heng Chan (Malaya)
Berhad, Southern Investment Bank Berhad (SIBB) wishes to
announce that the Securities Commission (SC) had via its letter
dated December 27, 2002, which was received on December 31, 2002
approved the Proposals as follows:

(i) The Proposed Restructuring Scheme that includes, inter-alia:

    (a) a renounceable rights issue of up to 37,988,750 new
        ordinary shares of RM1.00 each (Rights Shares) at an
        issue price of RM1.00 per Rights Share on the basis of
        two (2) Rights Shares for every one (1) existing
        ordinary share of RM1.00 each (SHCM Share) held in SHCM
        (Proposed Rights Issue);

    (b) a restricted issue of up to 12,988,750 new SHCM Shares
        on the basis of one (1) new SHCM Share at an issue price
        of RM1.00 each to be credited as fully paid up for every
        RM1.00 debt to be settled (Proposed New Shares Issue) if
        the level of subscription for the Rights Shares is at
        its minimum subscription level i.e. 25,000,000 Rights
        Shares (Minimum Subscription Level);

    (c) the issuance of RM17,209,000 nominal value of
        Irredeemable Convertible Unsecured Loan Stocks (ICULS)
        together with 17,209,000 free detachable warrants
        (Warrants) to the unsecured scheme creditors on the
        basis of one (1) new Warrant for every RM1.00 nominal
        value of ICULS (Proposed ICULS with Warrants Issue);

    (d) the disposals of land and buildings by SHCM and Sin Heng
        Chan (East Coast) Sdn Bhd (SHCEC), a wholly-owned
        subsidiary of SHCM, within three years from 2003 to 2005
        (Proposed Disposals);

    (e) the transfer of 1,988,548 Shares in Mauri Fermentation
        Sdn Bhd by SHCM to its wholly-owned subsidiary, Southern
        Farms Sdn Bhd (SFSB) for a consideration of RM591,070;

    (f) the listing of and quotation for the ICULS, Warrants and
        the new SHCM Shares to be issued pursuant to the
        Proposed Rights Issue, Proposed New Shares Issue,
        conversion of the ICULS and exercise of the Warrants on
        the Kuala Lumpur Stock Exchange (KLSE).

(ii) The Proposed Employees' Share Option Scheme

The establishment of an employees' share option scheme (ESOS)
granting options to eligible employees and Executive Directors
of SHCM and its subsidiaries to subscribe up to 10% of the
issued and paid-up share capital of the Company at any time
during the existence of the ESOS (Proposed ESOS) and the listing
of and quotation for the new SHCM Shares to be issued pursuant
to the exercise of the ESOS on the KLSE.

The SC had also approved the utilisation of the of proceeds
arising from the Proposed Rights Issue as set out in Table 1

The SC imposed the following conditions to be complied in
relation to the utilisation of proceeds from the Proposed Rights
Issue are as follows:

     (i) the SC's approval must be obtained for any variation
         pertaining to the utilisation of proceeds if the said
         variation involve the utilisation of the proceeds for
         non core business activities of SHCM;

    (ii) the SHCM shareholders' approval must be obtained for
         any variation of 25% or more from the original
         utilisation of proceeds. If the deviation is less than
         25%, appropriate disclosures must be made to the SHCM

   (iii) any extension of time frame for the utilisation of the
         proceeds from the period determined by SHCM should be
         approved by a clear resolution by the Board of
         Directors of SHCM and should be fully disclosed to the
         KLSE; and

    (iv) appropriate disclosure pertaining to the status of the
         utilisation of proceeds should be made in the quarterly
         report and annual report of SHCM until the proceeds are
         fully utilised.

The SC's approval is also conditional upon the following

     (i) SIBB is required to confirm to the SC that Dato' Choo
         Keng Weng and Alor Setar Industry Holdings Sdn Bhd
         (ASIH) have sufficient financial resources to subscribe
         for the Rights Shares allocated to them and to
         subscribe  for any un-subscribed portion of the Rights

    (ii) SHCM must submit the valuation reports of the SHCM
         Group's properties which are subject to the Proposed
         Disposals for the review and approval of the SC prior
         to the Proposed Disposals;

   (iii) SHCM can only utilise the proceeds arising from the
         Proposed Disposals as working capital for the SHCM

    (iv) SHCM must ensure that 25% of SHCM's issued and paid-up
         share capital is held by public shareholders pursuant
         to the implementation of the Proposals;

     (v) SHCM is required to appoint an independent audit firm
         (which is experienced in investigative audit and is not
         the existing or previous auditors of SHCM Group) within
         two (2) months from the date of the SC's approval
         letter to conduct an investigative audit on the
         Company's previous losses. The Company is also required
         to take the necessary/appropriate measures to recover
         the said losses. Based on the findings of the
         investigative audit, the Company is required to report
         to the relevant authorities in the event of any breach
         of laws, regulations, rules, guidelines and the
         Company's memorandum and articles of association by any
         member of the Company's Board of Directors and/or any
         other party that had caused such losses in the Company.
         Further, SHCM is required to improve its corporate
         governance. The investigative audit is to be completed
         within six (6) months from the date of appointment of
         the independent audit firm and appropriate announcement
         should be made to the KLSE in respect of the findings
         of the investigative audit. Two (2) copies of the said
         investigative audit report must be forwarded to the SC
         after the completion of the investigative audit;

    (vi) SIBB/SHCM is required to disclose in the information
         circular to shareholders and prospectus the risks in
         relation to the debt restructuring scheme of SHCM
         together with all the business and financial risks of
         SHCM upon the completion of the said restructuring

   (vii) SIBB/independent placement agent must submit the final
         list of investors/creditors who subscribe for the new
         SHCM Shares pursuant to the Proposed New Shares Issue
         for the SC's information and furnish a written
         confirmation that the shares placement has complied
         with all the relevant requirements under the SC
         Policies & Guidelines on Issue/Offer of Securities (SC

  (viii) the SC's approval must be obtained for any variations
         made to the terms and conditions for the issuance of
         the ICULS with detachable Warrants;

    (ix) before the issuance of the ICULS with detachable
         Warrants, SIBB must furnish the following:

         (a) the FMF/JPB (Facility Maintenance File) form to the
             SC and Bank Negara Malaysia; and

         (b) a certified true copy of the trust deed which has
             been duly executed to the SC;

     (x) SIBB and SHCM must obtain approvals from other relevant
         authorities before the implementation of the Proposals
         and comply with the conditions imposed (if any);

    (xi) SIBB and SHCM must fully comply with the SC's
         requirements and guidelines in relation to the issuance
         of Warrants save and except for the exercise price of
         the Warrants that has been fixed at RM1.00; and

   (xii) SIBB and SHCM are required to fully comply with the
         relevant requirements in relation to the implementation
         of the Proposals as stated in the SC Guidelines and
         including the SC Guidelines on ESOS dated 24 October
         2002 and the SC Guidelines on Offer of Private Debt

In addition to the above, SIBB is pleased to announce that the
SC had also approved the application by ASIH and parties acting
in concert with it i.e. Macronet Sdn Bhd, Dato' Choo Keng Weng,
Dato' Haji Esa bin Haji Mohamed, Ghazali Bin Saiboo and Datin
Ong Sok Hean for an exemption from the obligation to undertake a
mandatory offer under Practice Note 2.9.3 of the Malaysian Code
On Take-Overs and Mergers, 1998 (Code) to acquire the remaining
SHCM Shares not owned by them in the event where ASIH (a company
owned by Dato' Choo Keng Weng, Dato' Haji Esa bin Haji Mohamed
and Ghazali Bin Saiboo) being the subscriber named by Dato' Choo
Keng Weng, subscribed for any un-subscribed Rights Shares up to
a maximum of 25,000,000 Rights Shares.

However, the application to the SC for the exemption to ASIH and
parties acting in concert with it from the mandatory offer
obligation for the remaining SHCM Shares where ASIH's
shareholding in SHCM will exceed 33% or exceed 2% in any six (6)
months period that will only arise in the future, after the
conversion of the ICULS, exercise of the Warrants and the
acquisition of SHCM Shares under the put option agreement
entered into between the trustee and ASIH (Option Agreement),
under the following scenarios:

(a) acquisition of new SHCM Shares which are held by the trustee
    on behalf of the unsecured scheme creditors following the
    exercise of the put option under the Option Agreement;

(b) conversion of the ICULS acquired by ASIH pursuant to the
    execution of the put option under Option Agreement;

(c) exercise of the Warrants acquired by ASIH from the trustee
    for the unsecured scheme creditors; and/or

(d) conversion of the ICULS acquired by ASIH pursuant to the
    execution of the put option by the trustee and the exercise
    of the Warrants acquired by ASIH from the trustee in the
    event the Rights Shares are fully subscribed;

will only be considered by the SC after the following matters
have been fulfilled:

     (i) ASIH has obtained approval from the independent
         shareholders of SHCM in accordance with the "white-
         wash" procedure, as provided under paragraphs 5(b)(i)-
         (iv), Practice Note 2.9.1 of the Code. Approval from
         the shareholders of SHCM, if obtained, will be valid
         for the entire tenure of the ICULS, Warrants and Option

    (ii) SHCM is not allowed to implement any corporate
         proposals which will change the percentage
         shareholdings of ASIH and parties acting in concert
         with it in SHCM prior to the conversion of ICULS,
         exercise of the Warrants and the acquisition of SHCM
         Shares pursuant to the Option Agreement by ASIH and
         parties acting in concert with it which will result in
         a mandatory offer obligation on them;

   (iii) ASIH is not allowed to be involved in any transactions
         involving SHCM's securities, during the tenure of the
         ICULS, Warrants and Option Agreement. Nonetheless, ASIH
         can convert the ICULS, Warrants or sell SHCM Shares
         held by them on condition that ASIH will continue to
         own more than 33% of voting shares in SHCM;

    (iv) If the conversion of the ICULS, exercise of the
         Warrants and the acquisition of SHCM Shares under the
         Option Agreement by ASIH will result in its equity
         interests in SHCM increasing to a level exceeding the
         mandatory offer limit, ASIH and SIBB are required to
         inform the SC such transaction and confirm that all
         conditions as mentioned in (i) (ii) and (iii) above,
         have been fully complied with. ASIH and SIBB are
         required to make the necessary announcement to inform
         the shareholders of SHCM; and

     (v) If ASIH have converted the ICULS, exercised the
         Warrants and acquired SHCM Shares under the Option
         Agreement to a level whereby the exemption from the
         mandatory offer obligation is no longer required, ASIH
         and SIBB are required to make the necessary
         announcement to inform the shareholders of SHCM.

SIBB and SHCM are required to provide written confirmation to
the SC on the compliance with all the above terms and conditions
upon completion of the Proposals.

SHCM, the SA of SHCM, ASIH and parties acting in concert with it
are currently deliberating on the conditions imposed by the SC
and will decide on the next course of action. An appropriate
announcement will be made in due course.

TECHNO ASIA: Group Remains in Default of RM900M in Bank Loans

Lim Tian Huat and Chew Cheng Leong of Messrs. Ernst & Young were
appointed Special Administrators over Techno Asia Holdings Bhd
and a subsidiary company, Prima Moulds Manufacturing Sdn. Bhd.
(PMMSB) on February 2, 2001. The Special Administrators were
subsequently appointed over the following subsidiary companies
of TECASIA on April 30, 2001:

(1) Mount Austin Properties Sdn. Bhd.;
(2) Cempaka Sepakat Sdn. Bhd.;
(3) Ganda Edible Oils Sdn. Bhd.;
(4) Litang Plantations Sdn. Bhd.;
(5) Wisma Dindings Sdn. Bhd.;
(6) Ganda Plantations (Perak) Sdn. Bhd.; and
(7) Techno Asia Venture Capital Sdn. Bhd. (collectively known as
the "Affected Companies")

Pursuant to the announcement in respect of Practice Note 1/2001,
TECASIA wishes to announce that the Company and its
subsidiaries, namely Mount Austin Properties Sdn. Bhd (Special
Administrators Appointed), PMMSB (Special Administrators
Appointed), Prima Moulds Sdn. Bhd. and Ganda Energy and
Holdings, Inc continue to default in payments of their loan
interest and principal sums owing to several financial
institutions. The outstanding amounts as at November 30, 2002
were as follows:

                       Loan & Hire Purchase            TOTAL
Principal         Interest         (RM)
                      (RM)              (RM)
The Company       465,992,544      306,191,992     772,184,536
The Group         562,383,467      352,944,405     915,327,872

Measures Taken to Address the Default

TECASIA is considered as an "affected listed issuer" pursuant to

Further to the measures undertaken as announced on December 4,
2002, the status of TECASIA's plan to regularize its financial
position are as set out in the announcements made on December 4,
2002, December 11, 2002, December 20, 2002 and December 26,

Implications in respect of the Default in Payments

TECASIA wishes to announce that Pengurusan Danaharta Nasional
Berhad had on January 30, 2002 and April 26, 2002 granted an
extension of twelve (12) months to the moratorium previously in
effect for TECASIA and PMMSB and seven other subsidiaries
pursuant to Section 41(3). The said extension will expire on
February 2, 2003 and April 30, 2003 respectively. All legal
actions initiated against TECASIA and other affected
subsidiaries will be stayed and any petition for winding-up, or
any appointment of a receiver, receiver and manager or
provisional liquidator cannot proceed during the moratorium

ZAITUN BERHAD: PN4 Status Remains Unchanged
Zaitun Berhad wishes to announce that there is no change to the
status of its plan to regularize its financial position since
the last announcement made by the Company on December 2, 2002.

* KLSE Begins De-listing Proceedings Against 16 PN4 Firms
Seventeen companies listed on the Kuala Lumpur Stock Exchange
faces delisting if they fail to adequately explain why their
securities should not be stricken off from the bourse, The Edge
Daily said yesterday.

In a statement, the KLSE said it had already sent notices to the
companies classified as PN4, ordering them to submit their
respective explanations within 14 days from receipt.  The
delisting procedure, however, have only been started on 16 of
the 17 companies because that of Rekapacific Bhd had been
deferred pending disposal of the latter's application for
extension of time.

The 16 companies are Main Boarders CSM Corporation Bhd, Mancon
Bhd, Omega Holdings Bhd, Promet Bhd, Sateras Resources (M) Bhd
and Uniphoenix Corporation Bhd; while the Second Boarders are
Autoways Holdings Bhd, Esprit Group Bhd, Jutajaya Holdings Bhd,
Long Huat Group Bhd, Nauticalink Bhd, Repco Holdings Bhd, SCK
Group Bhd, Southern Plastic Holdings Bhd, United Chemical
Industries Bhd and Zaitun Bhd.

KLSE said the market capitalization of the 16 companies totals
RM800 million, which represents only 0.17 percent of the total
value of the KLSE.  As at January 3 this year, 94 out of 865
listed companies were under PN4 condition.  This represents
about 11 percent in terms of the number of companies, but only
0.9 percent in terms of market capitalization.   As at January
3, the KLSE's total market capitalization totals RM473.92
billion, while that of all PN4 companies amounts to RM4.42

KLSE executive chairman Datuk Mohd Azlan Hashim told The Edge
Daily the de-listing procedures would be carried out in a "fair,
objective and consistent manner and affected companies will be
accorded due process."

"It is only upon due consideration and relevant due processes
that the KLSE will decide on whether to de-list the companies
referred to as specified PN4 companies (applications not
submitted)," said Mr. Mohd Azlan.

On the impact to shareholders, he said de-listing was not the
end of a company nor is it a closure of the company's business
or operations.  He said the de-listed companies would remain a
public company with existing shareholders.  He said de-listed
companies could still regularize their financial conditions and
re-apply for listing when they satisfy the relevant conditions
and the Securities Commission guidelines on the issue/offer of

"PN4 companies have been given time in the course of about two
years to regularize their financial condition," Mr. Mohd Azlan
told The Edge Daily.

Since the creation of the status, 115 companies comprising 58
Main Board and 57 Second Board companies have been classified
under PN4. Of this, 21 companies (nine Main Board and 12 Second
Board) companies have successfully implemented their
restructuring plans and have been transferred out of PN4

KLSE said of the remaining 94 companies, which have yet to
regularize their financial conditions, 13 are referred to as
non-specified PN4 companies and 81 as specified PN4 companies.

Non-specified PN4 companies are those that had made their first
announcement that they were affected listed issuers under PN4
after December 31, 2001, while specified ones are those that
were affected on or before that date.

KLSE said as announced on Nov 26, 2001, an extension of time to
Dec 31, 2002 - the stipulated deadline - was granted to all
specified PN4 companies to obtain all regulatory approvals
necessary for the implementation of their regularization plans.

It said of the 81 specified companies, 47 have received
approvals and are in the process of implementing their plans,
while 17 have submitted the applications to the authorities, but
had not obtained all approvals as of Dec 31, 2002.

The KLSE said it would only commence de-listing procedures
against the 17 specified PN4 companies (applications submitted)
after the outcome of their applications is known. It will
proceed with de-listing if any regulatory approval is not

It said the 17 specified PN companies (applications submitted)
have been suspended except for Tongkah Holdings Bhd, UCP
Resources Bhd and Wembley Industries Holdings Bhd, but these
three will be suspended on January 10 as announced earlier.


MANILA ELECTRIC: ERC May Decide Rate Petition Soon
Manila Electric Co. shares were higher on Tuesday on hopes that
the Energy Regulatory Commission (ERC) will soon decide on the
Company's rate increase petition, AFX Asia said on Monday.

ERC said on Friday that it expects to decide on Meralco's
pending rate petitions "anytime soon."

Meralco has a pending consolidated petition with the ERC seeking
a basic rate increase of 0.30 pesos per kilowatt hour and a 1.12
pesos per kwh increase in unbundled generation rate. Meralco was
ordered last year by the ERC to consolidate the two petitions to
speed up the hearings. The firm filed the petitions for the
basic rate increase in April 2000, and for rate unbundling on
Dec 26, 2001.

At 9:48 am, Meralco B was up 0.75 pesos or 7.50 percent at 10.75
on volume of 1.422 million shares, while its A shares were up
0.40 or 4.55 percent at 9.20 on 187,000 shares.

NATIONAL POWER: Sees P40B Net Loss in 2002
The National Power Corporation (Napocor) expects a net loss of
40 billion pesos in 2002 from 10 billion pesos a year earlier,
the Philippine Daily Inquirer and Dow Jones reports, quoting
Napocor documents.

The documents also showed that the company's net loss this year
is expected to hit 84.5 billion, due to lower sales, a rate
reduction and higher expenses stemming from its restructuring.

The power firm may spend about 13 billion pesos in severance pay
for employees that will be shed as part of the restructuring.

PHILIPPINE LONG: Denies Blocking PT&T Traffic Report
The Philippine Long Distance and Telephone Co. responded to the
news article entitled "PT&T accuses PLDT of blocking calls"
published in the December 27, 2002 issue of Today.

The article reported that: "The Philippine Long Distance
Telephone Co. (PLDT) has been accused of blocking long-distance
calls coming from the Philippine Telegraph and Telephone Co.
(PT&T) despite an order from the National Telecommunications and
Commission (NTC) to restore interconnection between the two
telecom companies. Ernesto Barro, PT&T assistance Vice President
for carrier relations, accused PLDT of deliberately controlling
the interconnection between them because the telecom giant does
not want to recognize P114 million worth of toll settlement
claims it allegedly owes PT&T for 2001.

Philippine Long Distance Telephone Co. (PLDT), in a letter to
the Exchange dated January 2, 2003, clarified that:

PLDT vehemently denies the report that PLDT has been blocking
PT&T traffic. There is also no truth to the report that PLDT
owes PT&T toll settlement claims.

The press release is located at

PHILIPPINE LONG: Continues to Serve Clients
The Philippine Long Distance Co. (PLDT) continues to provide
service to its clients in all aspects of operations despite the
ongoing labor strike, the Manila Bulletin said yesterday.

PLDT subscribers need not be bothered with the labor strike the
company is experiencing, the firm said in a statement. Serving
its subscribers remains its top priority despite the temporary
inconvenience caused by the strike.

DebtTraders reports that Philippine Long Distance Telephone's
11.375 percent bond due in 2012 (TELP12PHS1) trades between 92
and 94. For real-time bond pricing, go to

PHILIPPINE LONG: Clarifies "Dispute Splits PLDT Union" Report
This is with reference to the news article entitled "Dispute
splits PLDT union, causes poor strike turnout" published in the
December 27, 2002 issue of the Manila Standard.

The article reported that: The ongoing strike at Philippine Long
Distance and Telephone Co. has failed to paralyze the dominant
carrier's operations. But management and union have agreed to
hold another conciliation meeting at the Department of Labor and
Employment on January 3, 2003 to amicably settle the labor

Philippine Long Distance and Telephone Co., in a letter to the
Philippine Stock Exchange dated January 2, 2003, advised that:

"Very few members have participated in the strike of the PLDT
union of rank and file employees.

PLDT also confirms the DOLE initiated further conciliation
meetings between management and the union to amicably settle the
labor dispute. One such meeting was held on December 27 and
another is scheduled on January 3, 2003.

For a copy of the press release, go to

PHILIPPINE LONG: Workers Block Entrance to Davao Offices
Retrenched workers of the Philippine Long Distance Telephone Co.
(PLDT) and their sympathizers blocked the entrance to the firm's
largest telephone exchange in Davao City on January 3 after
union officials claimed that the management in Manila ignored
their grievances, Business World reported Tuesday.

Babylyn Bautista, spokesperson for the protestors, vowed her
group would paralyze the Davao City central exchange's operation
until the management recognizes the issues raised by her group
and its union leaders in Metro Manila.

Last Friday's blockade-picket practically sealed the local PLDT
office from customers including those who wanted to pay their
bills. Employees working inside who were contacted by phone,
however, claimed the company's operation, including bills
payment and repair services, was normal and that many customers
were able to transact business especially in late afternoon of

PHILIPPINE LONG: Labor Secretary Orders Strikers Back to Work
Labor Secretary Patricia Santo Tomas has ordered striking
employees of Philippine Long Distance Telephone Co. (PLDT) to
return to work, reports AFX Asia.

In view of the failure of parties to settle the dispute through
consultations, Santo Tomas said she has certified the case for
compulsory arbitration by the National Labor Relations
Committee. The 6,700-member PLDT workers' union went on strike
on December 27 to protest the layoffs of 500 workers, effective
December 31.

UNION CEMENT: Redeems P950M Long-Term CP's
Union Cement Corp has redeemed a total of 950 million pesos in
long-term commercial papers, which matured on December 20 and
23, AFX Asia said on Friday. At 10.48 am on Friday, Union Cement
was not traded from the previous close of 0.45 pesos.

In April, the Troubled Company Reporter-Asia Pacific reported
that the Company aims to settle P1.5 billion in total debt this
year to bring down its total debt load to P1.7 billion.


AZTECH SYSTEMS: Liquidates Subsidiary
The Directors of Aztech Systems Limited announced that in line
with the Group's consolidation of its operations and
restructuring of its unprofitable operations, the Group will
close its operations in Batam with effect from 31st December
2002 and proceed with the voluntary liquidation of its
subsidiary in Batam, PT Galaxy Batam PT Galaxy (held through
Gateway Industrial Limited).

PT Galaxy has an authorised capital and paid-up capital of Rp
2,334,468,160 (S$1,413,500). Its principal activity was
manufacturing of electronics products.

With the general weak demand for electronics products worldwide,
PT Galaxy's operations have been affected for the past few
years. After more than 6 years of operations, PT Galaxy had as
at 31st December 2001 a net capital deficiency of Rp
10,775,273,385 (S$1,970,813). PT Galaxy had incurred the
following losses for the following past reporting periods:

Year / Period Turnover
S$ million Loss after Taxation S$ million
FY 2000 97.97 (0.56)
FY 2001 52.42 (0.21)
6 months ended 30th June 2002 (unaudited) 29.51 (0.52)

After reviewing in depth the financial position of PT Galaxy and
considering that the foreseeable future remained uncertain in
view of the prevailing difficult economic conditions, the Group
has decided to take steps to commence the closure of PT Galaxy's

As at 31st December 2001, the Group's investment in PT Galaxy
has been fully provided. The closure of PT Galaxy will not have
any significant effect on the consolidated net tangible assets
per share of the Group for the year ending 31 December 2002.

The Directors of Aztech are of the view that with the closure of
the Batam operations, the Group would be able to free up
resources and to focus on the Group's other manufacturing

CAPITALAND LIMITED: Dormant Unit Enters Liquidation
The Board of Directors of Capitaland Limited announced that its
indirect wholly-owned subsidiary, Zhongten Investment &
Development Pte Limited Zhongten has been placed under members'
voluntary liquidation.

Messengers Low Sok Lee Mona and Cheng Soon Keong of Messrs Low,
Yap & Associates have been appointed as the liquidators of
Zhongten.  Zhongten is currently dormant and its liquidation is
not expected to have any material impact on the net tangible
assets or earnings per share of CapitaLand Group for the current
financial year ending 31 December 2002.

KIM ENG: Units Enter Voluntary Liquidation
The Board of Directors of Kim Eng Ong Asia Holdings Ltd
disclosed that its subsidiaries, Ong Research Pte. Ltd. and Ong
(Money Brokers) Holding Private Limited have been placed in
Members' Voluntary Liquidation on 3 January 2003 and that Messrs
Steven Tan Chee Chuan and Douglas Tan Kay Yeow have been
appointed liquidators of the said subsidiaries.

Ong Research Pte. Ltd. and Ong (Money Brokers) Holding Private
Limited have ceased operations since March 2002 and July 2002,

The voluntary liquidation of the subsidiaries will not have any
material effect on the net tangible assets and earnings per
share of the Group.

NATSTEEL LTD: Mandatory Conditional Cash Offer by 98 Holdings
NatSteel Limited (NatSteel) had on December 31, 2002 announced
that the closing date of the mandatory conditional cash offer
(the "98 Holdings Offer by 98 Holdings Pte. Ltd. 98 Holdings has
been extended to 3.30 p.m. on January 10, 2003.

Further to that announcement, your Board wishes to summarise the
various options available to you, as a shareholder of NatSteel,
in respect of your holdings of NatSteel shares.

Option I: Accept the 98 Holdings Offer

The 98 Holdings Offer is at S$2.06 for each NatSteel share. 98
Holdings has announced that it has no further intention to
revise the 98 Holdings Offer.

To accept the 98 Holdings Offer, you must submit by 3.30 p.m. on
10 January 2003 the appropriate form of acceptance in accordance
with the procedures set out in the offer document dated 21
October 2002 containing the 98 Holdings Offer.

The 98 Holdings Offer is conditional upon the number of NatSteel
shares for which acceptances of the 98 Holdings Offer have been
received, together with the number of NatSteel shares owned,
controlled or agreed to be acquired by 98 Holdings and its
concert parties, exceeding 50 per cent. of the issued NatSteel
shares as at the close of the 98 Holdings Offer.

Accordingly, if you accept the 98 Holdings Offer, 98 Holdings
will acquire your NatSteel shares and you will receive S$2.06
for each NatSteel share only if the above condition is

If the above condition is not satisfied by 3.30 p.m. on 10
January 2003, all your NatSteel shares in respect of which you
have accepted the 98 Holdings Offer will be returned to you.

As at the date of this letter, the 98 Holdings Offer has not
become unconditional.

Your independent Directors have in the third supplemental
circular (the "Third Supplemental Circular dated 26 December
2002 issued in relation to the 98 Holdings Offer, relying on the
advice and recommendation of ANZ Singapore Limited (the
independent financial adviser to the independent Directors of
NatSteel) made a recommendation in respect of the 98 Holdings

Please refer to the section entitled "Recommendation of the
Independent Directors of the Company" on pages 3 to 6 of the
Third Supplemental Circular for the complete recommendation.

Option II: Continue to Hold NatSteel Shares

If you wish to continue to hold your NatSteel shares, you need
not take any action in respect of your NatSteel shares.

As stated in its announcement dated 22 December 2002, your
current Board intends to recommend a distribution of S$0.70 per
NatSteel share to be paid in early 2003 plus S$0.27 per NatSteel
share thereafter when reasonably practicable. Your Board also
intends to continue its practice of distributing surplus cash
prudently at the appropriate time.

Your Board does not believe it is commercially viable for
NatSteel to distribute S$1.55 per NatSteel share in the
immediate future and still function as a properly capitalised
group capable of maintaining its performance and growth
prospects. Therefore it is not certain that you will receive a
distribution of S$1.55 per NatSteel share in the immediate
future if you continue to hold your NatSteel shares.

In the event that there is a change to the members of the
current Board, the amount of the cash distribution, which may be
recommended by the newly constituted Board may be different.

If you have already accepted the 98 Holdings Offer, you are
entitled to withdraw your acceptance and continue to hold your
NatSteel shares.

Option III: Dispose of NatSteel Shares

If you wish to dispose of your NatSteel shares, you may do so by
selling your NatSteel shares through the Singapore Exchange
Securities Trading Limited (SGX-ST) or in an off-market sale1.

If you have already accepted the 98 Holdings Offer, you are
entitled to withdraw your acceptance and sell your NatSteel
shares through the SGX-ST or in an off-market sale.

If you sell your NatSteel shares through the SGX-ST, you will
receive the cash proceeds from such sale after three market days
(regardless of whether the 98 Holdings Offer becomes

Withdrawal of Acceptance and Further Information

If you wish to withdraw your acceptance of the 98 Holdings
Offer, you may do so by written notice to 98 Holdings Pte. Ltd.
c/o Macronet Information Pte Ltd, 4 Shenton Way #03-01, SGX
Centre 2, Singapore 068807 (such notice of withdrawal shall be
effective only when actually received by 98 Holdings).

For further information on the 98 Holdings Offer or if you have
questions on how to withdraw your acceptance, you may call the
toll-free help line set up by Standard Chartered Bank, the
financial adviser to 98 Holdings, at 1800-324 1123 (from 9.00
a.m. to 7.00 p.m. daily).

Responsibility Statement

The Directors of the Company (including those who have delegated
detailed supervision of this letter) have taken all reasonable
care to ensure that the facts stated in this letter are fair and
accurate, and that no material facts have been omitted and they
jointly and severally accept responsibility accordingly.

Where any information has been extracted from published or
otherwise publicly available sources or is otherwise provided by
or on behalf of other parties, the sole responsibility of the
Directors of the Company has been to ensure that such
information has been accurately and correctly extracted from
such sources or, as the case may be, accurately reflected or
reproduced in this letter.

For more information, go to

VAN DER HORST: Review of Financial Performance
Van Der Horst Limited (VDH), which is under judicial management,
refers to the disposal of the last remaining operating
subsidiary in October 2001 and the leasehold premises at Pandan
Crescent Singapore in January 2002 to Fargro Pte Ltd, the Group
and Company's results for the financial year ended 30 September
2002 reflected the cessation of turnover and rental income. Cash
balances of approximately US$22.3 million were deployed during
the year towards repayment to the Company's creditors thereby
reducing interest income. The trend will be one of no
significant income in the future as the Group's assets have been
divested and proceeds used for the repayment of creditors.

The Group and Company have outstanding loans of S$119.8 million
as at 30 September 2002 of which the outstanding US$ bank
liabilities was US$67.095 million. The depreciation of the SGD
against the USD during the year was 1% that was a significant
improvement from the previous year's exchange rate movement
resulting in a decline in foreign exchange losses by 45%
compared to the previous financial year.

The Company entered into a Debt Assignment Agreement with
Shantex Holdings Pte Ltd on 8 March 2002, and had to submit a
Scheme to the Company's Creditors for approval. The Scheme
included a proposal for the Debt Assignment. The Scheme was
approved by the Creditors at a meeting held on 28 June 2002 and
was approved by the Court on 12 July 2002. Distributions to the
Bank Creditors and Non-Bank Creditors would be completed shortly
and the outstanding liabilities to the Bank Creditors would be
discharged and assigned to Shantex Holdings Pte Ltd.

The Company has recorded an extraordinary gain. Two of the
Company's wholly owned subsidiaries, Van der Horst Hong Kong
Limited and VDH Finance (One) Limited were placed under
voluntary liquidation. There were loans of S$107.1 million owing
to these subsidiaries resulting in the write back of these loans
on the liquidations. The extraordinary items also included a
loss on disposal of assets to Fargro Pte Ltd of S$8.9 million
during the financial year.

Pursuant to the provisions of the Scheme of Compromise and
Arrangement between the Company and its creditors, the value of
the Company's equity interest in Space Imaging LLC was
US$6,858,016. In November 2002, these shares were distributed to
the bank creditors in consideration for reduction in the bank
debts. Due to the reversal of provision for dimunition in value
of investment made in prior year, there was an extraordinary
gain of S$7.3 million recorded in the books of the Company.

The Company made a Masnet announcement on the proposed
acquisition of Goldwater Company Limited. Please refer to the
announcement on the future outlook of the Company.

As at September 30, 2002, the Group does not have any operating
subsidiaries or businesses except for dormant subsidiaries.


BANKCHAK PETROLEUM: Government Revealing Rescue Plan Next Week
A senior official at the finance ministry told Business Day over
the weekend that the select committee studying the options for
ailing state-owned refinery Bangchak Petroleum will bare its
recommendations next week.

The State Enterprise Policy Committee was originally scheduled
to come up with the recommendations this Friday, according to
Business Day.  Deputy Finance Minister Varathep Rattanakon said
the new deadline for the committee's output is January 13.

Chai-Anand Samudavanija, chairman of a sub-committee that has
also been tasked to do the preliminary evaluation of the
company's debt woes, had previously said that Bangchak still has
the potential to succeed in its foray in the domestic energy
market.  As such, a bailout by the government was necessary to
keep it afloat.

Bangchak, one of Thailand's leading refiners, has an annual
refining capacity of 120,000 barrels per day, but is currently
running at 58 percent capacity utilization, the second lowest
after Thai Petrochemical Industry, which has a capacity of
215,000 barrels per day, Business Day said.

Bangchak is also one of the most heavily indebted with total
loans estimated at 20 billion baht.

"I am confident the sub-committee will be able to come up with a
conclusive analysis of Bangchak's problems that will eventually
be submitted to the national committee," Mr. Varathep told
Business Day in an interview.

The national committee will then decide what the best option
will be for rehabilitating Bangchak's business before forwarding
it to the Cabinet for the final decision, he said.

During a meeting on December 26 last year, the sub-committee
said its recommendations for rescuing Bangchak necessitated
sourcing new loans with lower borrowing costs. At the same time,
it also urged a merger with a state-owned counterpart like Thai
Oil and an increase in Bangchak's capital with the government
acting as guarantor.

The burden of servicing huge debts had affected Bangchak's
financial position badly, company sources told Business Day.
Bangchak is due to repay some seven billion baht to savings
cooperatives and the company is still looking for funds to meet
this particular obligation.  In the first half of 2002, Bangchak
posted a net profit of 647 million baht, the paper said.

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

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

Copyright 2003.  All rights reserved.  ISSN: 1520-9482.

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