TCRAP_Public/030529.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

         Thursday, May 29, 2003, Vol. 6, No. 105

                         Headlines

A U S T R A L I A

ARISTOCRAT LEISURE: S&P Cuts Rating to BB
ARISTOCRAT LEISURE: Shares Drop on Profit Warning
BULONG OPERATIONS: Enters Voluntary Administration
NEWMONT MINING: Offers To Acquire OSN Liabilities in Unit
NEWMONT YANDAL: S&P Lowers Rating to CC

SIRTEX MEDICAL: Cephalon Bid Unsuccessful
VOICENET LIMITED: Responds to ASX's Securities Trading Query


C H I N A  & H O N G K O N G

ASIA PAGING: Faces Winding Up Petition
EDENFOLK COMPANY: Hearing of Winding Up Petition Set
HSIN CHONG: Unit Appoint Receivers From CCIF Corporate
MING FAI: Winding Up Hearing Scheduled in June
SUN SHING: Winding Up Petition Pending


I N D O N E S I A

BANK MANDIRI: Seeks IPO Approval


J A P A N

AIOI INSURANCE: Swings Back to Profit
FUJITSU LIMITED: Halts Chip Plant in Iwate
HINO KIKAKU: Golf Course Enters Bankruptcy
RESONA HOLDINGS: 100 Board Members Resign on Restructuring
SANRIO CO.: Books US$141.4M Losses From Securities

SEGA CORPORATION: Mulling Sales Ties with EA
SEIBU DEPARTMENT: Cancels Retirement Bonuses
SNOW BRAND: Employees Handed Suspended Terms For Poisoning
SUMITOMO MITSUI: Restructures Branch Offices


K O R E A

CHOHUNG BANK: Union Postpones Strike
SK CORPORATION: April Sales Down 21%
SK GLOBAL: SK Corp. Set For Rescue Agreement


M A L A Y S I A

ABCAR CORP.: Extends Administrator's Appointment to May 26
ANSON PERDANA: Restraining Order Granted on Subsidiaries
L&M CORPORATION: SC OK's Restructuring Scheme Proposal
NYLEX BERHAD: Unit Proposes Fund Raising Exercise
OLYMPIA INDUSTRIES: SC OK's Restructuring Scheme

PERUSAHANN OTOMOBIL: Board OK's Group Reorganization Exercise
TEKUN BINA: Winding-up Petition Set For August 1


P H I L I P P I N E S

CEBU PRIVATE: Electricity Supplier to Close on June 15
C&P HOMES: Narrows First Quarter Net Loss to P55M
DIGITAL TELECOMMUNICATIONS: Anticipates Losses in Next Few Years
NATIONAL BANK: Expects 37% Drop in NPL Ratio
NATIONAL BANK: Sees Turnaround to Profitability

NATIONAL BANK: Unveils Appointment of New Directors
NATIONAL POWER: Likely to Sell US$500M Bonds
PHILIPPINE AIRLINES: Books US$5.41M Net Income in 2002
PHILIPPINE LONG: Pangilinan Steers PLDT Back to Profitability


S I N G A P O R E

ASTI HOLDINGS: Enters Subscription Agreement With Michael Loh
NATSTEEL LTD: 98 Holdings Support Amendment to Scrip Dividend
NEPTUNE ORIENT: Shareholders Approve Sale of AET


T H A I L A N D

JASMIN INT'L: Issues Update on Rehabilitation Plan

     -  -  -  -  -  -  -  -

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A U S T R A L I A
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ARISTOCRAT LEISURE: S&P Cuts Rating to BB
-----------------------------------------
Standard & Poor's Ratings Services said Wednesday that it has
lowered its corporate credit ratings on Aristocrat Leisure Ltd.
to 'BB' from 'BBB-' following the Company's announcement that
the performance of its Australian operations is being impacted
by a tough operating environment, and that the Company will
incur further charges as it restructures its U.S. operations.

"A drop off in tourism following the SARS outbreak, smoking
restrictions in gaming venues, and problem gambling minimization
policies, are resulting in reduced spending from Aristocrat's
key customer base," said Andrew Lilly - Associate Director of
Corporate and Infrastructure Financial Services.

Accounting for about 50 percent of operating income, an expected
30 percent-35 percent fall in profit contribution from Australia
in the six months to June 30, 2003, will result in materially
weakened credit-protection measures for the group.

"Aristocrat remains vulnerable to competitive pressure
considering it is in a period of significant transition, and
endeavoring to replace its Chairman, CEO, and CFO. The capital
requirements associated with the Company's U.S. expansion are
unlikely to result in meaningful debt reduction over the medium
term," Mr. Lally said.

Aristocrat's appetite for further debt usage is subject to some
uncertainty, particularly with newly appointed executives having
the potential to realign the Company's operating and financial
strategies.

Aristocrat's liquidity has materially weakened through reduced
free-operating cash flow.

The Company intends to syndicate an existing A$200 million
revolving bank facility in fiscal 2003; however, significant
one-off charges and a drop in underlying earnings leave the
syndication dependent on banker support, and market forces.

With a possibility of asset writedowns in fiscal 2003, if senior
debt obligations rise above 15 percent of total assets, (11
percent at Dec. 31, 2002), the rating on the US$130 million
convertible subordinated bonds would most likely be rated one
notch down from the corporate credit rating of the Company.

Contact: Andrew Lally, Melbourne (61) 3-9631-2077

Jeanette Ward, Melbourne (61) 3-9631-2075


ARISTOCRAT LEISURE: Shares Drop on Profit Warning
-------------------------------------------------
Shares in Aristocrat Leisure almost lost 40 percent of its
market capitalization on Tuesday when the Company warned it
would post an interim loss of A$32m-A$37m (US$21m-US$24m), just
one month after saying it expected to break even, the Financial
Times reports.

The Company has been hit by changes to Victoria state laws,
which ban smoking in gaming venues, the SARS virus and war-
related slump in tourism, and the general economic slowdown. Its
shares plummeted 64 cents to A$1.00 on Tuesday, a four-and-a-
half year low. They have lost more than three quarters of their
value this year, and are down from A$6.08 a year ago.


BULONG OPERATIONS: Enters Voluntary Administration
--------------------------------------------------
The Board of Directors of Bulong Operations Pty Ltd. has placed
the Company in voluntary administration. Geoff Totterdell and
Martin Brown of PricewaterhouseCoopers were appointed jointly
and severally as Administrator and this was followed by the
appointment of Barry Honey and Robyn McKern of KPMG as Receiver.

Despite achieving significant operational improvements,
production and cost performance have continued to be below
expectation. This situation has been significantly exacerbated
by the increasing AUD:USD exchange rate. The uncertainty
regarding future supply and cost of sulphuric acid following WMC
Resources' decision not to fully supply Bulong after the end of
2003 has also had a significant impact.

For further information, please contact Peter Rowe, CEO of
Bulong Operations Pty Ltd, on 08 9093 6200.


NEWMONT MINING: Offers To Acquire OSN Liabilities in Unit
---------------------------------------------------------
Newmont Mining Corporation announced a proposal to address the
outstanding Senior Note (OSN) and gold hedge liabilities (GHL)
of its Australian subsidiary, Newmont Yandal Operations Limited
(Yandal). Newmont acquired Yandal (formerly known as Great
Central Mines Ltd.) in February 2002 as part of the Normandy
acquisition.

In this regard, another Newmont subsidiary, Yandal Bond Company
Limited (YBCL), intends to offer to acquire all of the 8-7/8%
Senior Notes due April 2008 (the Notes) outstanding and issued
by Yandal. YBCL currently owns $62.8 million in aggregate
principal amount of the Notes. At the same time, YBCL intends to
offer to acquire all of the gold hedge obligations owed by
Yandal to counter party banks.

The aggregate offer price will be approximately $118.6 million
for the Notes not currently owned by YBCL and approximately
$100.8 million under the all cash option for the hedge counter
party positions (see below). The hedge counter parties will be
offered an alternative option to transfer a portion of the hedge
book to Newmont in lieu of any cash consideration (see below).

The Note offer will be to acquire all of the $237.2 million
principal amount of Notes not owned by YBCL plus accrued
interest for a cash payment (including an early acceptance and
consent fee) of $0.50 per dollar of outstanding principal
amount. The hedge counter party offer includes two alternatives:
counter parties may elect to receive $0.50 for each dollar of
net mark-to-market liability under their individual hedge
contracts, as calculated by YBCL as of May 22, 2003; or, in lieu
of cash, counter parties may elect to assign all such contracts
with Yandal to YBCL and enter into new hedging contracts with
Newmont, in accordance with Newmont's usual terms and
conditions, such that Newmont would assume obligations
equivalent to an undivided 40% of Yandal's existing hedge
obligations with such counter party.

The offers will be subject to customary conditions. The
conditions to the Note offer will include, among others,
acceptance by a majority in outstanding principal amount of the
$237.2 million of outstanding Notes not currently owned by YBCL
and there not being any acceleration of Yandal indebtedness or
insolvency or similar proceeding instituted against Yandal.

The hedge offer conditions will include, among others, that no
demand for payment shall have been made by any counter party or
Note holder and that there not have been a voluntary or
involuntary insolvency or similar proceeding instituted by or
against Yandal. Note holders will also be solicited to consent
to certain amendments to the indenture pursuant to which the
Notes were issued. Formal offers to Note holders and gold hedge
counter parties are expected within a week.

Yandal is expected to carry on business as usual while the
offers are outstanding and Newmont does not believe that, in the
event the offers are successful, they will impact employees or
regular trade creditors in any way.

Wayne W. Murdy, Chairman and Chief Executive Officer of Newmont,
commented: "After a thorough review of Yandal's condition, we
have put together these offers in an equitable and transparent
manner, and we believe that they represent significant premiums
to the alternative of an insolvency administration. We look
forward to resolving this issue expeditiously."

Newmont, based in Denver, is the world's premier gold mining
company and the largest gold producer with significant assets on
five continents.


NEWMONT YANDAL: S&P Lowers Rating to CC
---------------------------------------
Standard & Poor's Ratings Services has lowered its corporate
credit rating on Newmont Yandal Operations Ltd. (Yandal) to 'CC'
from 'B-'. The outlook remains negative. The rating on the
Company's US$300 million senior notes due April 2008 is also
lowered to 'CC' from 'B-'.

The rating action follows the announcement made by Yandal's
parent Company, Newmont Mining Corp. (Newmont, BBB/Stable/-)
that it intends to offer about US$220 million for all
outstanding senior notes issued by Yandal, in addition to
acquiring all of the gold hedge obligations owed by Yandal to
counter party banks.     Newmont through its subsidiary Yandal
Bond Company Ltd. currently owns US$62.8 million of the notes.

The offer will be sent to noteholders, and hedge counter parties
within a week. For the offer to proceed, acceptance by a
majority of the noteholders in the outstanding principal not
owned by Newmont will be required.

The aggregate offer price will be about US$118.6 million for the
notes not currently owned by Newmont, and about US$100.8 million
under the all-cash option for the hedge counterparty positions.

The note offer will be to acquire all notes not owned by
Newmont, plus accrued interest, for a cash payment (including an
early acceptance and consent fee) of US$0.50 per dollar of
outstanding principal amount (US$237.2 million).

The hedge counterparty offer includes two alternatives:
counterparties may elect to receive US$0.50 for each dollar of
net mark-to-market liability under their individual hedge
contracts, as calculated by Newmont as of May 22, 2003; or, in
lieu of cash, counter parties may elect to assign all such
contracts with Yandal to Yandal Bond Company, and enter into new
hedging contracts with Newmont, such that Newmont would assume
obligations equivalent to an undiviad 40 percent of Yandal's
existing hedge obligations with such counterparty.

Standard & Poor's will continue to monitor the outcome of the
offer. However, if the offer is accepted by noteholders,
Yandal's corporate credit rating and issue rating will be
lowered to 'D'.


SIRTEX MEDICAL: Cephalon Bid Unsuccessful
-----------------------------------------
The bid by Cephalon for Sirtex Medical Limited has not been
successful, as they did not satisfy their 90 percent acceptance
condition. The Sirtex Board will meet later this week and will
release a statement to the ASX following this meeting.

According to Wrights Investors' Service, the company has paid no
dividend during the previous 2 fiscal years and also reported
losses during the previous 12 months. During the 12 months
ending 12/31/02, the company has experienced losses totaling
A$0.04 per share.


VOICENET LIMITED: Responds to ASX's Securities Trading Query
------------------------------------------------------------
Voicenet (Aust) Limited refers to the Australian Stock Exchange
(ASX)'s letter dated 27 May, 2003 in relation to Tuesday's
change in the Company's securities and the trading volume and
advise the following:

1. The Company is not aware of any information concerning it's
affairs that has not been announced, which if known, could be an
explanation for the recent trading in the securities in the
Company.

2. Not applicable.

3. There are a number of commercial negotiations taking place in
several countries around the world by the Company's Joint
Venture in London, Microgenix Technologies Ltd.

However none are at an announceable stage in our present view
although we hope to be in a position to announce completed
contracts shortly.

It appears that a section of the market believes that the
patented Microgenix Air Purification System MAPS offers a
solution to the treatment of air contaminated by the SARS virus.

To date no known Company has tested its air purification systems
against SARS. Nor has the MAPS system tested against SARS.
Microgenix is currently negotiating participation in proposed
testing to be undertaken by the CAMR, the Centre for Applied
Microbiology and Research at Porton Down, in the UK, considered
to be a leading world authority on such testing. We expect to be
in a position to advise the market on a SARS testing timeframe
shortly.

The Microgenix scientific advisor has stated "because it is
thought that the SARS virus is related to the corona virus, it
is expected that MAPS will destroy the SARS virus - it is very
similar to E Coliphage(MS2) and MAPS has undergone extensive
testing against MS2 and has proven to be 99.9 percent effective.

Microgenix has last week shipped a MAPS Model MD 170 unit to the
People's Republic of China for expedited testing at the Chinese
Ministry of Health testing laboratory responsible for
certification of all air purification products, as a pre-
requisite to anybody being able to market their air purification
products in China.

In the past weeks Microgenix has completed testing of the
effectiveness of MAPS against both Tuberculosis and Smallpox at
Porton Down. In both cases an eradication rate of close to 100
percent within 1.2 seconds was achieved. Similar results were
achieved against anthrax in past testing. To date MAPS has had
close to a 100 percent kill rate on all viruses and bacteria it
has been tested against including:

AIRBORNE PATHOGEN                                DISEASE

Rhinovirus                                       Colds
Coxsackievirus                                   Colds
Echovirus                                        Colds
Togavirus                                        German Measles
Reovirus                                         Colds
Orthomyxovirus - Influenza                       Flu
Coronavirus                                     Colds/SARS
Varicella-zoster                                 Chickenpox
Arenavirus - Junin & Machupo                     Hemmorhagic and
                                                 Lassa fever
Parainfluenza                                    Flu
Respiratory Syncytial virus                      Pneumonia
Poxvirus - variola                               Smallpox
Paramyxovirus                                    Mumps

We note that most air-conditioning systems capture only part of
any pathogens in the air but do not kill them leaving a
contaminated filter with consequent disposal problems. MAPS not
only captures virtually 100 percent of all pathogens tested to
date by eradicates all pathogens eliminating disposal problems.

4. The Company is in compliance with the ASX Listing Rules and,
in particular, Listing Rule 3.1.

J Dalco
ACTING GENERAL MANAGER



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C H I N A  & H O N G K O N G
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ASIA PAGING: Faces Winding Up Petition
--------------------------------------
Messrs. Sit Fung Kwong & Shum on behalf of the petitioner,
Unicom Paging (Hong Kong) Limited is seeking the winding up of
Asia Paging Company Limited. The petition was filed on April 22,
2003, and will be heard before the High Court of Hong Kong on
June 11, 2003.

The Unicom Paging (Hong Kong) Limited holds its registered
office at Unit 1507, Two Harbourfront, 22 Tak Fung Street,
Hunghom, Kowloon, Hong Kong.


EDENFOLK COMPANY: Hearing of Winding Up Petition Set
----------------------------------------------------
The petition to wind up Edenfolk Company Limited is set for
hearing before the High Court of Hong Kong on June 18, 2003 at
9:30 in the morning. The petition was filed with the court on
April 23, 2003 by Bank of China (Hong Kong) Limited whose
registered office is situated at 14th Floor, Bank of China
Tower, No. 1 Garden Road, Central, Hong Kong.


HSIN CHONG: Unit Appoint Receivers From CCIF Corporate
------------------------------------------------------
On 27th May, 2003, Hsin Chong Construction (BVI) Ltd. HCCBVI, a
wholly-owned subsidiary of Hsin Chong Construction Group Ltd.,
appointed Messrs. Jim Wardell and Jackson Ip, both of CCIF
Corporate Advisory Services Ltd. as the Receivers and Managers
of the assets and undertaking of Flannel Limited Flannel, an
indirect subsidiary of the Company in which the Company has a
92.79 percent equity interest, under a debenture Debenture dated
17th January, 2000.

On 17th January 2000, HCCBVI provided a credit facility of
HK$20,000,000 to Flannel. As security for the credit facility
and other borrowings, Flannel entered into the Debenture
charging its assets in favor of HCCBVI as lender. As of 20th May
2003 (the latest practicable date prior to publishing of this
announcement), Flannel owed HCCBVI approximately HK$13 million
under the said facility and other borrowings. The said credit
facility and the Debenture were disclosed in the Annual Report
of the Company for the year's 1999/00 to 2001/02.

The directors of HCCBVI noted that Flannel had ceased operation
on 18th June 2002 and Flannel will not be able to repay the
amount owed to HCCBVI in future. In the best interests of HCCBVI
and its shareholders, HCCBVI resolved that it is the appropriate
time to appoint Receivers and Managers in respect of Flannel's
assets and undertaking to secure loan and other indebtedness
owed by Flannel to HCCBVI. Accordingly Messrs. Jim Wardell and
Jackson Ip, both of CCIF Corporate Advisory Services Ltd. were
appointed as the Receivers and Managers on
27th May 2003.

Flannel is an inactive indirect subsidiary of the Company which
had a place of business in Hong Kong and ceased operation on
18th June, 2002 following a review of its foundation operation
and decision to withdraw from the foundation business by the
directors of Flannel, having regard to the then highly
competitive market for foundation operation. On 16th May, 2003,
the Hong Kong Housing Authority HKHA issued and served three
writs Writs from the High Court of the Hong Kong Special
Administrative Region Court of First Instance against Flannel
for a total sum of approximately HK$188 million in respect of
sums allegedly due in respect of contracts for work at Tung
Chung Area 30, Phases 1 and 3 and Yau Tong Estate, Phase 3. The
Writs relate to Flannel's alleged failure to give effect to the
decision of the HKHA's contract managers in relation to the
works under the three contracts. However, it is noted that,
notwithstanding the claims made in the Writs, the HKHA had by a
press release dated 21st October, 1999 stated that its
consultants had concluded that all piles in Tung Chung Area 30,
Phases 1 and 3 had met the structural safety standard. Further,
the directors of the Company have been advised by the directors
of Flannel that they are not aware of any remedial works having
been carried out for Tung Chung Area 30, Phases 1 and 3 and Yau
Tong Estate, Phase 3 by the HKHA.

After cessation of Flannel's operation on 18th June 2002,
foundation works form no part of the Group's core business. The
appointment of Receivers and Managers in respect of Flannel's
assets and undertaking are not expected to have any adverse
impact on the trading operations and financial position of the
Group. The Group's existing operations including the Group's
building construction and civil engineering operations will not
be affected by the appointment of Receivers and Managers in
respect of Flannel.

This announcement has been reviewed and approved by all
independent non-executive directors.


MING FAI: Winding Up Hearing Scheduled in June
----------------------------------------------
The High Court of Hong Kong will hear on June 18, 2003 at 9:30
in the morning the petition seeking the winding up of Ming Fai
Printing Equipment Company Limited. IBA Credit Limited of
International Bank of Asia Building, No. 38 Des Voeux Road
Central, Hong Kong filed the petition on April 24, 2003. Foo and
Li represent the petitioner.

Creditors and other interested parties are encouraged to attend
the hearing.  They only need to notify in writing Foo And Li,
which holds office on the 10th Floor, Rooms 1001-4, Floor New
World Tower I 18 Queen's Road Central, Hong Kong.


SUN SHING: Winding Up Petition Pending
--------------------------------------
Sun Shing (Ka Lee) Development Limited is facing a winding up
petition, which will be heard before the High Court of Hong Kong
on June 11, 2003. Bank of China (Hong Kong) Limited of 14th
Floor, Bank of China Tower, No. 1 Garden Road, filed the
petition on April 11, 2003, Central, Hong Kong.


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I N D O N E S I A
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BANK MANDIRI: Seeks IPO Approval
--------------------------------
Bank Mandiri will hold a shareholders meeting on May 29 to seek
approval for a planned initial public offering (IPO) in June,
the Jakarta Post said on Thursday. The deputy of the offices of
the State Ministry of State Enterprises, Mahmuddin Yasin, said
that the bank would sell 15 percent of its shares.

Yasin said that the bank planned to register the IPO plan with
the Capital Market Supervisory Agency (Bapepam) later this week.
The meeting would also discuss the bank's capital condition and
the appointment of a new board of directors.


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J A P A N
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AIOI INSURANCE: Swings Back to Profit
-------------------------------------
Aioi Insurance Co. incurred a net profit of 13.93 billion yen in
the year ending March 31 versus a net loss of 88.25 billion yen
a year ago, Kyodo News said on Tuesday. The non-life insurance
group credited the turnaround to cost reductions and the lack of
hefty losses it had the previous year on overseas reinsurance
claims of its United States agent following the September 11,
2001 terror attacks in the United States.


FUJITSU LIMITED: Halts Chip Plant in Iwate
------------------------------------------
Fujitsu Ltd. halted operations at its semiconductor plant in
Iwate Prefecture due to damage from Monday's powerful earthquake
in northeastern Japan, Kyodo News reports. Fujitsu is the only
domestic firm that produces a new type of semiconductor device
called the FRAM chip, and if the Iwate plant's shutdown
continues for a long time, there will be a FRAM supply shortage
in Japan.

Standard & Poor's Ratings Services reported last week that the
'BBB-pi' rating on Fujitsu Ltd. could be lowered if the
Company's cash flow and profitability fail to recover quickly,
or if its capital structure is not improved through debt
reduction.

Having reduced its fixed costs by 170 billion yen through
restructuring measures, Fujitsu returned to profitability in
fiscal 2002 (ended March 31, 2003), posting an operating profit
of 100 billion yen after an operating loss of 74.4 billion yen
in the previous year. However, its cash flow showed only a small
improvement in fiscal 2002. Funds from operations to total debt
rose to 4.3 percent from minus 2.8 percent a year earlier, which
is still very weak for the rating category.


HINO KIKAKU: Golf Course Enters Bankruptcy
------------------------------------------
Hino Kikaku K.K. has been declared bankrupt, according to Tokyo
Shoko Research Limited. The golf course located at Shinjuku-ku,
Tokyo, Japan has 55 million yen in capital against total
liabilities of 19 billion yen.


RESONA HOLDINGS: 100 Board Members Resign on Restructuring
-----------------------------------------------------------
Around 100 board members at firms affiliated with Resona
Holdings Inc. will resign as part of the banking group's
restructuring program, according to Kyodo News on Tuesday.
Resona plans to get rid of all board members aged 60 and over at
the affiliated firms, and will not pay them retirement
allowances.


SANRIO CO.: Books US$141.4M Losses From Securities
--------------------------------------------------
Sanrio Co.'s losses from management and sales of securities in
the year ending in March 31 increased to 16.5 billion yen
(US$141.4 million), according to Asia Pulse on Tuesday. To cope
with large losses, Sanrio will implement a capital reduction and
forego a dividend payout for the first time in five years.
President Shintaro Tsuji announced in October 2002 that the
Company planned to withdraw from equity investment, which it has
pursued for about 40 years.


SEGA CORPORATION: Mulling Sales Ties with EA
--------------------------------------------  
Sega Corporation will consider an offer from U.S. firm
Electronic Arts Inc. (EA) to form a North American sales
alliance aimed at shoring up its poor performance in the world's
largest gaming market, citing Sega Senior Officer Hisao Oguchi.
But Oguchi declined to provide details of the offer and said
nothing had been decided.

EA, one of Sega's top rivals in the U.S., is a leader in sports
simulation games and last year fended off a Sega challenge to
its dominance in that sector. "We have been badly beaten in the
U.S. consumer viao game market," said Oguchi, who was one of the
principle developers behind hit Sega games such as the
domestically popular Derby Owner's Club.


SEIBU DEPARTMENT: Cancels Retirement Bonuses
--------------------------------------------
Seibu Department Stores Ltd. will not pay retirement bonuses to
Chairman Kotaro Matsumoto and seven other outgoing top
executives, according to Kyodo News on Tuesday. Seibu made the
decision after its creditors agreed earlier this year on a 230
billion yen bailout scheme under a revival plan for the crippled
department store operator, clarifying the responsibility of
management, they said.


SNOW BRAND: Employees Handed Suspended Terms For Poisoning
----------------------------------------------------------
Two former employees of a Snow Brand Milk Products Co. were
given suspended prison terms Tuesday over a mass food-poisoning
outbreak from tainted milk products in summer 2000, Japan Times
said on Wednesday. The Osaka District Court handed down a two-
year sentence, suspended for three years, and a 120,000-yen fine
to Osamu Kubota, former head of the Taiki factory in the town of
Taiki, Hokkaido, that produced the contaminated ingredients of
the tainted milk products. The court also sentenced Koichi
Izumi, former chief of the skimmed milk manufacturing division
at the Taiki plant, for 18 months with a two-year suspension.

The court found them guilty of professional negligence that
caused injuries to 200 people through the poisoning. The victims
were among some 13,000 people mainly in western Japan who
suffered diarrhea and other symptoms of food poisoning after
consuming the contaminated milk products. Snow Brand is doing
its best to ensure quality control so that its products will
never again be the source of food poisoning.


SUMITOMO MITSUI: Restructures Branch Offices
--------------------------------------------
Sumitomo Mitsui Banking Corporation announced Tuesday that its
branch offices under the Asset Restructuring Unit will be
integrated into Headquarters located at Tokyo and Osaka, and be
reorganized to the departments as below on June 16, 2003.

Through this reorganization, SMBC will further reinforce its
initiative for reengineering and restructuring of corporate
customers' businesses, and the improvement of its credit
portfolio.

Names of New Departments:
Tokyo Credit Business Dept. I-VI
Osaka Credit Business Dept. I-III
Kobe Credit Business Dept.
Credit Dept. I-IV

About Sumitomo Mitsui Banking Corporation

The Sumitomo Mitsui Banking Corporation, formerly known as The
Sumitomo Bank, Ltd., is a provider of financial products and
services. Operations include corporate finance, trade finance,
structured finance, project finance, risk management, leasing
finance, asset-backed finance, underwriting of debt issues,
international securities operations, advisory services, M&A
transactions, credit card services, electronic home banking,
financial engineering and fund management through a network of
270 domestic branches, 47 sub-branches, 17 overseas branches, 3
sub-branches, 16 representative offices, 84 consolidated
subsidiaries and 29 affiliated companies. Operations are carried
out through three segments: Banking, Leasing and Other
Operations. Banking accounted for 68 percent of fiscal 2001
revenues; leasing, 19 percent and other operations, 13 percent.
For further information, please visit the Sumitomo Mitsui
Banking Corporation home page at: www.smbc.co.jp/global/


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K O R E A
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CHOHUNG BANK: Union Postpones Strike
------------------------------------
Chohung Bank's labor union will postpone a strike planned for
later this week, reversing its earlier decision at the last
minute, Asia Pulse reports. The union protested the government's
plan to sell the troubled bank and has been stepping up its
campaign since President Roh Moo-hyun hinted at selling the
embattled bank.

"The South Korean government decided to accept dialogue with us,
so we made the decision to put off the strike slated for
Thursday in an emergency meeting," the union said in a
statement. "We will decide when and where to hold the meeting as
soon as possible after negotiations with the government."

DebtTraders reports that Cho Hung Bank's 11.875% bond due in
2010 (CHOH10KRS2) trades between 113.5 and 114.5. For real-time
bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=CHOH10KRS2


SK CORPORATION: April Sales Down 21%
------------------------------------
SK Corporation informed the Korea Stock Exchange that sales of
refined petroleum, chemical and lubricants were expected to fall
3.6 percent to 1.06 trillion won ($884 million) from 1.10
trillion won a year ago. April sales fell 21 percent from 1.34
trillion won in March, it said. Global oil prices have fallen in
the wake of the U.S.-led attack on Iraq, weighing on profit
margins of oil refiners. SK Corp said it had shut its No.2 crude
distillation unit (CDU) -- with a capacity of 115,000 barrels
per day (bpd) -- between April 1 and May 6 for regular
maintenance.


SK GLOBAL: SK Corp. Set For Rescue Agreement
--------------------------------------------
SK Corporation is set to agree on a long-awaited rescue package
worth at least 1,000 billion won (US$834 million) that will save
affiliate SK Global from bankruptcy, reports the Financial
Times. The deal, which is likely to be announced on May 28,
follows weeks of haggling between SK Corporation and creditors
about the fate of SK Global. SK Global's future has been
uncertain since March, when an accounting fraud, inflating its
profits by US$1.2 billion, was discovered.


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


ABCAR CORP.: Extends Administrator's Appointment to May 26
----------------------------------------------------------
Abrar Corporation Berhad (SPECIAL ADMINISTRATORS APPOINTED)
announced that the moratorium under Section 41 of the Danaharta
Act, which took effect from 27th May 2000, i.e. the date of the
appointment of Special Administrators to the Company, has now
been further extended to 26th May 2004. The extension of the
moratorium is pursuant to Section 41(3) of the Danaharta Act.
During the period of the moratorium, no creditor may take action
against the Company except in accordance with Section 41 of the
Danaharta Act.


ANSON PERDANA: Restraining Order Granted on Subsidiaries
--------------------------------------------------------
A restraining order (RO) pursuant to Section 176(10) of the
Companies Act 1965 has been granted by the High Court of Malaya
to the following subsidiaries of Anson Perdana Berhad (Anson) on
22 May 2003, valid for a period of 3 months:

1. Bayan Bay Development Sdn Bhd BBDSB (a 70 percent owned
subsidiary of Anson); and

2. Bayan Marina Yacht Club Berhad BMYCB (a 100 percent owned
subsidiary of BBDSB).

(A) Details Of The Events Leading To The Grant Of The Court
Order

BBDSB is in advanced negotiations with an interested party to
revive its Penang development project, which has been stalled
since 1998 due to the regional economic crisis. However, certain
creditors are taking legal proceedings against both BBDSB and
BMYCB. As there is a need to restrain all legal proceedings
while BBDSB and BMYCB work to formulate a scheme of arrangement,
it was deemed necessary to apply for an RO under Section 176 of
the Companies Act, 1965.

(B) Financial And Operational Impact On The Group

Anson does not expect the RO to have any material financial
and/or operational impact on Anson Group.

(C) Details Of The Proposed Scheme

Subject to the consent of creditors and any necessary
modifications to comply with regulatory and legal requirements,
the proposed debt-restructuring scheme of BBDSB and BMYCB would
involve the following:

To complete the development of the Megamall Phase I;
To resolve the issue relating to memberships of Bayan Bay Marina
Club; to achieve a more advantageous distribution for creditors;
and to allow BBDSB and BMYCB to continue as going concerns.

The proposed debt-restructuring scheme would be forwarded to the
creditors of BBDSB and BMYCB for approval upon the financial
advisor finalizing the full details of the proposed scheme.


L&M CORPORATION: SC OK's Restructuring Scheme Proposal
------------------------------------------------------
The Special Administrators of L & M CORPORATION (M) BHD namely
Mr. Gan Ah Tee, Mr. Ooi Woon Chee and Encik Mohamed Raslan bin
Abdul Rahman of KPMG Corporate Services Sdn Bhd Special
Administrators announced that the Securities Commission (SC) has
approved the Proposed Corporate Debt Restructuring Scheme (CDRS)
that was previously announced by the Company and the Proposed
ESOS, to be implemented by Itsucom Berhad (ITSB) subsequent to
the completion of the Proposed CDRS. In addition, the SC has
also granted its consent for the put option in relation to the
ICULS to be secured against 26,000,000 ITSB Shares, which will
be held under moratorium by the Promoters and substantial
shareholders of ITSB.

These SC approvals are subject to, inter-alia, the following
conditions:

(i) ITSB is to comply with the minimum public shareholding
spread requirement of 25 percent of the share capital of the
Company. In this respect, ITSB is required to furnish details of
the proposed share allocation pursuant to the Proposed
Distribution of Shares including a list of the recipients, for
the SC's approval;

(ii) A moratorium shall be imposed on the sale of 50 percent of
the ITSB Shares to be received by the PST Vendors, TPSB Vendors,
GSSB Vendors and SJSB Vendors, whereby they are not allowed to
sell, transfer or assign their shareholdings under moratorium
for 1 year from the date of listing. In this respect, the SC has
no objection to ITSB's proposal for the moratorium to be imposed
on the shareholdings of the following:

Please refer to Table 1.

(iii) L&M is required to appoint an independent firm of auditors
(with experience in investigative audit and which is not the
existing or previous auditors of the L&M Group) within 2 months
from the date of the SC's approval letter to conduct an
investigative audit into the past losses of L&M Group. L&M is
required to take the necessary/relevant measures to recover the
losses incurred by L&M. Based on the results of the
investigative audit, L&M is required to lodge a report with the
relevant authorities should there be any violation of laws,
regulations, guidelines and/or Memorandum and Articles of
Association of L&M by the Board of Directors of L&M and/or any
other parties which have caused the said losses to the L&M
Group. The said investigative audit should be completed within 6
months from the date of appointment of the independent firm of
auditors and an appropriate announcement should be made to the
KLSE on the findings of the investigative audit. Upon completion
of the said audit, 2 copies of the investigative audit report
must be submitted to the SC;

(iv) RHB Sakura Merchant Bankers Berhad RHB Sakura/L&M/ITSB are
required to obtain the approval of the SC for any amendments to
the terms of the issuance of ICULS;

(v) Prior to the issuance of the ICULS, RHB Sakura/L&M/ITSB are
required to furnish, inter-alia, the following documents to the
SC:

(a) A certified true copy of the trust deed; and
(b) Extract of resolution of the new board of directors of ITSB,
after its formation, to ratify the declaration submitted to the
SC in relation to the issuance of ICULS;

(vi) ITSB is required to comply with the conditions imposed on
the development and land rights as set out in Table 2;

(vii) L&M is required to issue an information circular to its
shareholders and disclose clearly the reasons for the losses
incurred by the Company, details of the provisions of bad debts
as well as the effects of the proposed restructuring of L&M on
the shareholders. RHB Sakura is also required to comment on the
valuation of the purchase consideration of the Acquiree
Companies;

(viii) In relation to PST's outstanding trade debts of RM23.65
million as at 31 December 2002, the Directors of PST are
required to furnish written confirmation to the SC that the said
trade debts are fully recoverable, other than those for which
provision for bad debts have been made. In the event the said
trade debts are not recovered, the substantial shareholders of
PST are required to compensate for the un-recovered amount;

(ix) ITSB Group must take pro-active steps to recover trade
debts exceeding credit period or make the appropriate provisions
in its accounts before the listing of ITSB. ITSB Group is also
urged to strengthen its credit management system (including
having a clear credit policy) in order to avoid problems
associated with debt collection in the future;

(x) The Directors of ITSB are required to furnish written
confirmation and declaration that the trade debts of ITSB Group
exceeding the credit period are recoverable and full provision
have/will be made in its accounts for debts exceeding credit
period; and

(xi) ITSB is required to disclose clearly in its information
circular the terms of its ongoing "turnkey" projects and the
risks associated with them. Further, ITSB/PST is advised that
contracts for new projects to be entered into in the future
should contain better terms, which are beneficial to the Company
and terms that will limit the financial risks to the Company.
Accordingly, ITSB/PST is also advised not to "over commit" to
projects which are beyond its operational and financial
capabilities.

The Special Administrators will convene a meeting to deliberate
on the abovementioned conditions imposed by the SC for the
Proposed CDRS. A further announcement will be made following the
Special Administrators' deliberation of the aforesaid SC's
conditions.

The SC has further in their letter, noted that RM2 million out
of the proceeds from the Proposed Private Placement will be
utilized for the Proposed Debt Settlement. Nevertheless, the SC
has imposed the following conditions in relation to the said
utilization of proceeds from the Proposed Private Placement:

(a) SC's approval must be obtained for any changes to the
utilization of proceeds if such changes involve any utilization
other than for the core business of ITSB Group;

(b) The approval of the shareholders of ITSB must be obtained
for any subsequent deviation amounting to 25 percent or more
from the original utilization of proceeds. In the event the
deviation is less than 25 percent, appropriate disclosure will
be required to the shareholders of ITSB;

(c) Any extension of time for the period which has been
determined by ITSB for the utilization of the said proceeds must
be approved by a final resolution of the Board of Directors of
ITSB and should be announced to the KLSE; and

(d) Appropriate disclosures on the status of the said
utilization of the proceeds are required to be made in the
quarterly and annual reports of ITSB until all the proceeds are
fully utilized.

The Special Administrators are also pleased to announce that the
SC had also in the same letter, granted a waiver to Dato' Foo
Chu Jong, Foo Chu Pak, Shariman bin Zainal Abideen and Wong Chui
Kheng (who are deemed to be acting in concert) from their
obligation to extend a mandatory general offer for the remaining
ITSB Shares which are not already owned by them upon completion
of the Proposed CDRS, pursuant to Practice Note 2.9.3 of the
Malaysia Code on Takeovers and Mergers, 1998.


NYLEX BERHAD: Unit Proposes Fund Raising Exercise
-------------------------------------------------
On behalf of Nylex (Malaysia) Berhad, Alliance Merchant Bank
Berhad announce that Nylex's wholly owned subsidiary, Tamco
Corporate Holdings Berhad (Tamco), is proposing to undertake a
fund raising exercise which involves the issuance of up to
RM80.0 Million Nominal Value of Bai' Bithaman Ajil Serial Bonds
Proposed BBA Serial Bonds on a private placement basis. Alliance
Merchant Bank Berhad and Citibank Berhad are the Principal
Advisers and Lead Arrangers for the Proposed BBA Serial Bonds.

Tamco will use up to RM60.0 Million of the proceeds from the
Proposed BBA Serial Bonds for part settlement of the inter-
Company loans due to its current parent Company, Nylex, with the
balance for meeting working capital requirements of Tamco and
issuance expenses of this proposed fund raising exercise.

In this connection, an application in respect of the Proposed
BBA Serial Bonds has been submitted to the Securities Commission
on May 27.


OLYMPIA INDUSTRIES: SC OK's Restructuring Scheme
------------------------------------------------
Olympia Industries Berhad (OIB) refers to the announcements made
by Alliance Merchant Bank Berhad Alliance, on behalf of the
Company's board on 11 March 2002 and 27 March 2003 in relation
to the Securities Commission's SC approval letters dated 8 March
2002 and 25 March 2003, respectively SC's Approvals wherein the
SC had given its conditional approval to the Proposed
Restructuring Scheme and the subsequent revisions thereto.

Further to these SC Approvals, Alliance, on behalf of the Board,
wishes to announce that on even date, the Company has notified
the SC further revisions to the Proposed Restructuring Scheme,
details of which are set out in Section 2 below.


2. PROPOSED REVISIONS

2.1 Proposed Debt Restructuring

As submitted to the SC and subsequent to the due diligence
exercise undertaken by the scheme advisers, OIB will be
undertaking a debt restructuring scheme with certain secured and
unsecured creditors Scheme Creditors of OIB and its subsidiaries
(collectively known as "OIB Group, whereby OIB proposes to
restructure debts amounting to RM1,022,987,192, comprising
principal amount of RM857,569,243 and interest of RM165,417,949
as at 30 June 2001. The total accrued interest from the
respective cut-off dates of the debts to be restructured would
be waived.

In addition, Dairy Maid Resort & Recreation Sdn Bhd DMRR, a
wholly owned subsidiary of OIB, has proposed, as per the request
of the Pengurusan Danaharta Nasional Berhad Danaharta which is
the sole lender to DMRR, to separately restructure debts
amounting to RM116,082,690, comprising principal amount of
RM72,500,000 and interest of RM43,582,690 accrued up to 30 June
2001. The principal amount of RM72,500,000 is proposed to be
restructured into DMRR restructured term loan DMRR-RTL and
RM22,667,261 of the total accrued interest up to 30 June 2001
would be settled by way of new ordinary shares of RM1.00 each in
OIB OIB Shares. RM20,915,429 of the remaining total accrued
interest up to 30 June 2001 would be waived.

However, DMRR has to continue servicing the principal repayment
of the debts to Danaharta on a monthly basis. At the time of
submission to the SC on 20 July 2002, the principal amount was
calculated to take into account the monthly repayment up to
December 2002, the expected implementation time for the Proposed
Restructuring Scheme. Therefore the final nominal value of the
DMRR-RTL to be issued could only be determined at a later date
prior to the implementation of the Proposed Debt Restructuring.

As such, the Company proposes to revise the nominal value of the
DMRR-RTL to reflect the revised amount of debt to be
restructured Proposed DMRR Revision. As at 31 March 2003, the
principal amount of the debt in DMRR stands at RM67,500,000.
Details on the Proposed DMRR Revision are set out in Table 1
below.

The Proposed DMRR Revision will not have any effect on the
quantum of new OIB Shares and the other financial instruments to
be issued pursuant to the Proposed Debt Restructuring.

2.2 Revision to the utilization of proceeds

Part of the proceeds to be raised from the Proposed Special
Issue will be utilized for the compensation to Danaharta for the
low interest payable for the first four (4) years of the tenure
in respect of the DMRR-RTL. In view of the Proposed DMRR
Revision, such compensation to Danaharta will be reduced
accordingly. Based on the outstanding principal amount of DMRR's
debt of RM67,500,000 as at 31 March 2003, the compensation for
the low interest payable for the first four (4) years of the
tenure in respect of the DMRR-RTL is estimated at RM5,416,192.
However, the final compensation sum can only be determined at a
later date prior to the implementation of the Proposed
Restructuring Scheme.

The proceeds to be utilized for the compensation for the low
interest of DMRR-RTL cannot be determined at this juncture and
is still subject to further change. As stated earlier, the final
nominal value of the DMRR-RTL and the compensation for the low
interest payable to Danaharta could only be determined at a
later date prior to the implementation of the Proposed Debt
Restructuring. Hence, any difference between the final
compensation amount and the RM5,817,392 approved by the SC for
this purpose via its letter dated 25 March 2003 shall be
utilized for the general working capital of OIB for its core
business.


3. RATIONALE

The Proposed DMRR Revision is primarily to reflect the effect
the monthly principal repayment made by DMRR to Danaharta on the
final nominal value of DMRR-RTL to be issued. The reducing
balance of the DMRR-RTL has a consequential effect on the
compensation for the low interest payable for the first four (4)
years of the tenure in respect of the DMRR-RTL that will be
payable upfront via the cash proceeds from the Proposed Special
Issue. Based on the outstanding principal amount of DMRR's debt
of RM67,500,000 as at 31 March 2003, the compensation for the
low interest payable for the first four (4) years of the tenure
in respect of the DMRR-RTL is estimated at RM5,416,192. The
final compensation sum could only be determined prior to the
implementation of the Proposed Debt Restructuring, when the
final nominal value of the DMRR-RTL is ascertained.

As a result of the Proposed DMRR Revision and in view that the
compensation amount for the low interest of the DMRR-RTL can be
determined at only prior to the implementation of the Proposed
Debt Restructuring, the final amount of the proceeds from the
Proposed Special Issue to be utilized for the compensation can
also only be determined later. The compensation for the low
interest of the DMRR-RTL cannot be determined at this juncture
and is still subject to change, due to the reducing balance of
the secured debt of DMRR to be restructured.

4. FINANCIAL EFFECTS
4.1 Shareholding structure and issued and paid-up share capital

The aforesaid revisions to the Proposed Restructuring Scheme
will have no effect on the shareholding structure and issued and
paid-up share capital of OIB.

4.2 Proforma consolidated net tangible assets NTA

The aforesaid revisions to the Proposed Restructuring will not
have any material effect on the proforma consolidated NTA of OIB
Group as at 30 June 2002.

4.3 Earnings

The aforesaid revisions to the Proposed Restructuring will not
have any material effect on the earnings of OIB Group for the
financial year ending 30 June 2003.


5. APPROVAL REQUIRED

The aforesaid revisions to the Proposed Restructuring Scheme do
not result in a change to the aggregate quantum and terms of the
new OIB Shares, warrants and financial instruments to be issued
by OIB and any departure from the conditions imposed in the SC's
Approvals.

Hence, the Proposed Restructuring Scheme shall be subject to the
approval of the shareholders of OIB in a forthcoming
extraordinary general meeting to be convened.


6. DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

None of the Directors and/or major shareholders of the OIB group
and/or person(s) connected with the Directors or major
shareholders of the OIB Group has any interest, direct or
indirect in the aforesaid revisions to the Proposed
Restructuring Scheme.


7. DIRECTORS' OPINION

After taking into consideration the current financial position
of the OIB Group, the Directors of OIB are of the opinion that
the aforesaid revisions to the Proposed Restructuring Scheme are
in the best interest of the OIB Group and its shareholders.


PERUSAHANN OTOMOBIL: Board OK's Group Reorganization Exercise
-------------------------------------------------------------
On behalf of the Board of Directors PERUSAHAAN OTOMOBIL NASIONAL
BHD  (Proton), Commerce International Merchant Bankers Berhad
(CIMB) announced that the Board has approved the proposed group
reorganization exercise to be undertaken by Proton that will
involve the following:

(a) Proposed exchange of shares pursuant to a scheme of
arrangement under Section 176 of the Companies Act, 1965 Scheme
of Arrangement between Proton and its shareholders, whereby all
the existing shareholders of Proton will exchange all their
ordinary shares of RM1.00 each in Proton for new ordinary shares
of RM1.00 each in a new Company to be incorporated Newco on the
basis of one new ordinary shares of RM1.00 each in Newco for
every one existing ordinary shares of RM1.00 each held in Proton
Proposed Share Exchange;

(b) Proposed reorganization of the corporate structure of the
Proton group of companies

Proton Group via the distribution of assets of Proton to Newco
and intermediate holding companies of Newco IHC Proposed Group
Reorganization;

(c) Proposed transfer of listing status of Proton to Newco and
the subsequent delisting of Proton from the Official List of the
Kuala Lumpur Stock Exchange Proposed Listing Transfer;

(d) Proposed exemptions to Newco and/or the IHC from the
obligation to make a mandatory general offer pursuant to Part II
of the Malaysian Code of Takeovers and Mergers, 1998, for the
remaining shares in companies which are not wholly-owned by
Newco and/or the IHC (as the case may be) after the Proposed
Group Reorganization Proposed Exemptions.

(The abovementioned proposals are collectively referred to
herein as the Proposals)

The effect on the corporate structure of the Proton Group before
and after the Proposals is set out in Table 1 in the attached
file.

2. RATIONALE FOR THE PROPOSALS

Proton is reorganizing to take advantage of the various
opportunities surfacing domestically and globally in the fast
changing and competitive automotive market.

The Proposed Group Reorganization represents a strategic step
forward to transform Proton from a manufacturer of vehicles to
provide a whole new suite of products and services with an
expanding and diversifying business model. It is also designed
to allow Proton to venture into new opportunities, which would
include joint ventures involving manufacturing, sales and
marketing, engineering services and ancillary products.

Following this strategic transformation, Proton's business
activities will be streamlined and focused on its core
competencies hence facilitating further expansion into existing
downstream activities and new businesses.

3. INDUSTRY REVIEW AND PROSPECTS OF THE PROTON GROUP

The global automotive industry is undergoing major structural
changes, namely technological advancement in all aspects of
automotive production, market liberalization and the flow of
reorganization and rationalization amongst international
automotive companies. These developments have a significant
impact on the domestic and regional policies and strategies in
the automotive industry and it is vital that the Malaysian
automotive industry move in line with this recent development.

The two-year extension approved for Malaysia to include the CBU
(Completely Built-Up) and CKD (Completely Knocked-Down)
automotive products into the CEPT (Common Effective Preferential
Tariff) scheme of the AFTA has enabled the Malaysian automotive
industry to be more resilient, and to undertake the necessary
restructuring exercise to prepare for the market opening
commitments under the AFTA. To date, most of the Malaysian
automotive products have already been offered for tariff
concession, including tractors, ambulances and motor homes,
dumpers designed for off-highway use, special purpose vehicles,
chassis and bodies and parts and components. For parts and
components, 60 percent of the products are already at tariffs of
between 0 percent and 5 percent, while 40 percent are at tariffs
of between 11 percent and 20 percent. Tariffs on all parts,
components and other automotive products, which have been
included in the CEPT scheme will be reduced to between 0 percent
and 5 percent by 2003.

Last year, Malaysia accounted for 34.3 percent of the total
sales of motor vehicles in ASEAN, with passenger car sales in
Malaysia presenting 28 percent of overall motor vehicle sales in
ASEAN.

Nevertheless, developments in the Malaysian automotive industry
show that, there is continued interest amongst local and foreign
investors to undertake automotive manufacturing and assembly, as
well as the manufacture of automotive parts. For the two-year
period between 2001 and 2002, eleven projects were approved for
automobile manufacture and assembly. Total investments amounted
to RM955.2 million, of which 66.4 percent or RM634.1 million
were domestic investments, and 33.6 percent or RM321.1 million
were foreign investments. For the manufacture of automotive
components in the two years 2001 and 2002, 71 projects amounting
to RM642.1 million were approved. Out of the total amount, 53
percent or RM340.1 million were domestic while 47 percent or
RM302.0 million were foreign.

Upon completion of the Proposals, Proton would be better
positioned to capitalize on the vast business opportunities (as
mentioned above) expected in the automotive industry.

4. EFFECTS OF THE PROPOSALS

4.1 Share Capital/ Shareholding Structure
Pursuant to the Proposals, Proton will become a wholly owned
subsidiary of Newco. There will be no change in the issued and
paid-up share capital of Proton.

Shareholders of Proton, through the Proposed Share Exchange,
will become shareholders of Newco. The effects of the Proposals
on the issued and paid-up share capital of Newco is set out in
Table 2 below.

4.2 Net Tangible Assets NTA
Upon completion of the Proposals, the consolidated NTA of Newco
will not be materially different from the NTA of the Proton
Group prior to the Proposals.

4.3 Earnings

The Proposals will be completed in the second half of the
financial year ending 31 March 2004. Hence the Proposals are not
expected to have any material impact on the consolidated
earnings of Newco for the said financial year. Barring any
unforeseen circumstances, the Proposals are expected to have a
positive impact on the consolidated earnings of Newco
thereafter.

4.4 Corporate Structure

The corporate structure of the Proton Group before and after the
Proposals is set out in Table 1 below.


5. APPROVALS OF THE PROPOSALS

The Proposals are conditional upon approvals of the following:

(a) The Securities Commission SC for the Proposals (in regards
to the Proposed Exemptions, only if required);

(b) The Foreign Investment Committee for the Proposed Share
Exchange and Proposed Group Reorganization;

(c) The Ministry of International Trade and Industry for the
Proposed Share Exchange and Proposed Group Reorganization;

(d) The High Court of Malaya for the sanction of the Scheme of
Arrangement;
(e) The shareholders of Proton at a court convened meeting and
extraordinary general meeting for the Proposals;

(f) The shareholders of subsidiaries and associated companies of
Proton, which are not wholly owned by Proton for the Proposed
Group Reorganization and/or Proposed Exemptions (if required);

(g) The Kuala Lumpur Stock Exchange for the Proposed Listing
Transfer and the listing of and quotation for the Newco Shares
to be issued pursuant to the Proposed Share Exchange;

(h) The creditors of Proton and/ or its subsidiaries and
associated companies, if required; and

(i) Any other relevant authorities or parties.

The Proposed Share Exchange, Proposed Group Reorganization,
Proposed Listing Transfer and Proposed Exemptions (if required)
are inter-conditional upon each other.

6. DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

None of the Directors and/or Major Shareholders of Proton and
persons connected to them has any interest, direct or indirect,
in the Proposals.

7. DIRECTORS' RECOMMENDATION ON THE PROPOSALS

The Board, after careful deliberation, is of the opinion that
the Proposals are in the best interests of the Proton Group.

8. APPOINTMENT OF ADVISER

The Board has appointed CIMB as the Adviser for the Proposals.

9. SUBMISSION OF APPLICATION TO THE RELEVANT AUTHORITIES

Applications to the SC for the Proposals will be made within
three (3) months from the date of this announcement.


TEKUN BINA: Winding-up Petition Set For August 1
------------------------------------------------
In relation to the Kuala Lumpur Stock Exchange (KLSE)'s query
regarding the details or circumstances leading to the filing of
the winding-up petition against Tekun Bina Sdn. Bhd., SETEGAP
BERHAD informed that it arises out of a contractual and
settlement dispute regarding the supply and installation of
signboards. There is no interest payable to be claimed under the
winding-up petition. The hearing date for the petition has been
fixed on 1 August 2003.


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


CEBU PRIVATE: Electricity Supplier to Close on June 15
------------------------------------------------------
Cebu City will have a critical power situation once the Cebu
Private Power Corp. (CPPC) shuts down and stops selling
electricity to the Visayan Electric Co. (Veco) on June 15, Sun
Star Daily said Wednesday. By then, Cebu will be left with a
minimal 20-megawatt power reserve instead of the ideal 90
megawatts. Veco Public Relations Assistant Ethel Natera said
CPPC decided to close shop after suffering heavy losses since
last year.

Veco officers and engineers are currently looking for
alternative sources of power to cover the expected 60-megawatt
loss because of the CPPC closure. They are expected to meet
again this week to look into the problem.


C&P HOMES: Narrows First Quarter Net Loss to P55M
-------------------------------------------------
C&P Homes Inc. posted a net loss of 55 million pesos in the
first quarter ending in March versus a net loss of 64 million
pesos in the prior year, AFX Asia said on Wednesday. Costs and
expenses fell to 351 million pesos from 463 million, while
foreign exchange losses and interest expenses declined to 139
million from 185 million the previous year.

The company said it is implementing measures to generate
liquidity including the sale of certain assets, rationalization
and streamlining of operations and settlement of obligations
through "outright and unconditional" sale of properties. C&P
said it expects to return to profitability in the next three
quarters.
      

DIGITAL TELECOMMUNICATIONS: Anticipates Losses in Next Few Years
----------------------------------------------------------------
Gokongwei-owned Digital Telecommunications Philippines, Inc.
(Digitel) expects two to three years of losses before it can
recover the capital sunk into its mobile phone business Sun
Cellular, reports the Business World. In a press briefing,
Digitel President and chief executive Lance Y. Gokongwei said
the Company's cellular business is expected to turn in profits
in four years.

In the first quarter, Digitel posted a consolidated net loss of
173.6 million pesos (US$3.3 million), compared to a net income
of 44.9 million pesos in the same period last year. Digitel's
wireless service Sun Cellular registered an operating loss of
122 million pesos during the first quarter. Mr. Gokongwei said
Digitel has invested $300 million in its wireless business. Sun
Cellular started commercial operations on March 29.


NATIONAL BANK: Expects 37% Drop in NPL Ratio
--------------------------------------------
Philippine National Bank (PNB) will sell non-performing assets
this year to improve its loan portfolio, Reuters said Tuesday.
The bank expected the ratio of its non-performing loans (NPLs)
to total loans to drop to 37 percent by the end of this year
from 50.1 percent as of end-2002. The NPL ratio peaked at 55
percent around mid-2002. The average bad loan ratio for
Philippine commercial banks stood at 15.50 percent as of end-
March.  

PNB planned to reduce the volume of non-performing loans by 10
billion pesos ($190 million) by the end of the year. The NPL
ratio would come down through restructuring and sale of non-
performing assets to a special purpose firm.


NATIONAL BANK: Sees Turnaround to Profitability
-----------------------------------------------
After posting huge losses for three years, Philippine National
Bank (PNB) may finally return to profitability this year on the
back of asset sales and increased earnings from its fee-based
services, the Philippine Star said on Wednesday. In 2000, PNB
incurred a net loss of P5.9 billion, although strategic
adjustments as well as remedial measures trimmed the losses down
to P4.1 billion and P1.9 billion in 2001 and 2002, respectively.

This year, PNB President Lorenzo V. Tan expects to register a
net income of between 20 million pesos to 100 million pesos,
depending mainly on the bank's ability to dispose of its bad
assets. The bank has also been holding talks with several groups
interested in investing or acquiring its bad assets. These
include foreign asset management corporations (AMCs) interested
in forming special purpose vehicles (SPVs) and avail of the huge
discounts.


NATIONAL BANK: Unveils Appointment of New Directors
---------------------------------------------------
Philippine National Bank (PNB) advised the Philippine Stock
Exchange that in the Annual Stockholders' Meeting of the PNB
held on May 27, 2003, in PNB stockholders took up and approved
the following:

1. The election of the following as directors of the Bank to
serve as such for a period of one year and until their
successor(s) shall have been elected and shall have qualified:

Domingto T. Chua
Santiago S. Cua Jr.
Francisco A. Dizon
Vicente L. Panlilio
Alejandro R. Roces
Washington Z. Sycip
Lorenzo V. Tan
Lucio C. Tan
Ricardo M. Tan
Florencia G. Tarriela
Macario U. Te

The independent directors as Mr. SyCip and Mr. Roces.

2. Appointment of SGV & CO. as the Bank's external auditor

At the organization meeting of the Board of Directors
immediately following the Annual Shareholders' Meeting, the
following were elected to the positions set forth after their
names:

Francisco A. Dizon   Chairman of the Board
Lorenzo V. Tan              Vice Chairman & President
Sylvia Chan-Lim             Treasurer
Renato J. Fernandez         Corporate Secretary
Benilda V. Abrasia-Tejada   Internal Auditor

For a copy of the press release, go to
http://www.pse.org.ph/html/disclosure/pdf/dc2003_1690_PNB.pdf


NATIONAL POWER: Likely to Sell US$500M Bonds
--------------------------------------------
National Power Corporation may soon sell US$500 million of
dollar bonds, according to Reuters, citing an unnamed senior
government official. The state-owned power utility needs to
borrow US$1 billion this year to plug its financing gaps.

The Power Sector Assets and Liabilities Management Corp. (PSALM)
is in talks with multilateral creditors for the transfer of the
National Power Corporation (Napocor) assets and liabilities, The
Troubled Company Reporter-Asia Pacific reported Wednesday. PSALM
is still in the process of "satisfying" some terms in the loan
agreement with creditors before they could give the go-signal
for the transfer of the Napocor assets to PSALM.


PHILIPPINE AIRLINES: Books US$5.41M Net Income in 2002
------------------------------------------------------
Philippine Airlines recorded a net income of 286 million pesos
for the year ending in March versus a loss of 1.7 billion pesos
a year earlier, Asia Pulse reports. However, the airline failed
to reach a P1 billion-profit target for the fiscal year, nor the
estimated 400 million pesos to 500 million pesos net income as
the Severe Acute Respiratory Syndrome (SARS) scare greatly
affected the airline.

PAL was even planning to go on public listing but a net loss on
its third year of rehabilitation following two years of
profitability prevented it from doing so. PAL President Avelino
Zapanta said it is too early to say at this time how the airline
will do for this year.


PHILIPPINE LONG: Pangilinan Steers PLDT Back to Profitability
-------------------------------------------------------------
Philippine Long Distance Telephone Co. (PLDT) President Manuel
V. Pangilinan has effectively steered PLDT back to profitability
this year, the Philippine Star said on Wednesday. Credit Suisse
First Boston (CSFB) projects 2003 PLDT net income to reach
P7.189 billion, improving further to P10.148 billion next year,
as against P1.473 billion in 2002. Revenue estimates are
likewise bullish with year-end earnings expected to hit P87.93
billion this year and P92.016 billion in 2004, compared to
P80.163 billion last year.

More importantly, PLDT was able to sustain its credit
improvement, according to Banc of America Securities. As of
March 31, 2003, its net debt to equity ratio dropped to 1.69
times, compare to 1.79x in 2002 and 1.98x in 2001. "We believe
this is a good set of results from both a profitability and
credit perspective," BA's Asia credit research group said. PLDT
is now focusing on further reducing its debts as well as that of
Smart, bringing down costs of manpower, and boosting free cash
levels further.



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


ASTI HOLDINGS: Enters Subscription Agreement With Michael Loh
-------------------------------------------------------------
Further to the announcement by ASTI Holdings Limited on 13 May
2003 in relation to the entry by the Company into a binding term
sheet with Mr Michael Loh (the Term Sheet), the Company
announced that it has entered into the subscription agreement
with Mr Loh dated 27 May 2003 (the Subscription) Agreement to
further document the terms of Mr Loh's proposed investment in
the Company to raise additional funds to meet the Company's
working capital requirements.

2. SHAREHOLDERS' APPROVAL

The Company will, in due course, issue a circular to its
shareholders explaining the rationale for the transaction, and
convene an extraordinary general meeting to seek the approval of
its shareholders.


NATSTEEL LTD: 98 Holdings Support Amendment to Scrip Dividend
-------------------------------------------------------------
The Board of Directors of NatSteel Ltd refers to the statement
issued by 98 Holdings Pte. Ltd. 98 Holdings on May 28.

The Board welcomes the statement made by 98 Holdings to support
an amendment to the scrip dividend scheme resolution (Resolution
4) to be proposed at the extraordinary general meeting (the EGM)
of the Company tomorrow. The Board believes that such an
amendment to Resolution 4 should accommodate the concerns, which
had been expressed by Sanion Enterprises Limited Sanion.

The effect of the amendment is that it would subject the
implementation of the scrip dividend scheme by the Company to
the passing of a whitewash resolution (1). With the passing of
the whitewash resolution, Sanion may elect to receive NatSteel
shares pursuant to the scrip dividend scheme without being
required to make a takeover offer for NatSteel. 98 Holdings has
confirmed to the Company that its representative will be
proposing the amendment to Resolution 4 at the EGM tomorrow.

Sanion had expressed its concern that, with its 29.99 per cent.
shareholding in NatSteel, it faces a high degree of risk of
triggering a takeover obligation if it were to elect to convert
its dividend into scrip. The amendment to Resolution 4 would
defer the implementation of the scrip dividend scheme unless and
until the whitewash resolution, waiving the obligation of Sanion
to make a takeover offer for Sanion, is passed. The passing of
the whitewash resolution would therefore enable Sanion to elect
for a scrip dividend without being required to make a takeover
offer for NatSteel.

If the amended Resolution 4 is passed, all shareholders will be
able to participate in the scrip dividend scheme and the Company
will have the opportunity to retain cash by allowing
shareholders to elect for scrip in lieu of cash dividends.

The Board re-affirms its opinion that all the matters to be
proposed at the EGM are in the interests of the Company and
shareholders and continues to recommend that shareholders VOTE
IN FAVOR of all the Resolutions to be proposed at the EGM
(including the amendment to Resolution 4 and the amended
Resolution 4). Shareholders who have already submitted proxy
forms may change the voting instructions in their proxy forms by
submitting the amended voting instructions to the Company prior
to the voting of the relevant Resolution at the EGM.

Note:

1. A whitewash resolution is a resolution passed in accordance
with Appendix 1 to The Singapore Code on Take-overs and Mergers
and is subject to the prior approval of the Securities Industry
Council (the "SIC. It must be approved by a majority of NatSteel
shareholders, present at the meeting and voting by way of a
poll, and is subject to such other conditions as the SIC may
impose. The whitewash resolution acts as a waiver by NatSteel
shareholders of their rights to receive a general offer from
Sanion. Sanion will be required to abstain from voting on the
whitewash resolution. 98 Holdings has, in its statement released
today, said that it will vote in favor of the whitewash
resolution if it is proposed to NatSteel shareholders. Based on
98 Holdings' current shareholding in NatSteel, the whitewash
resolution will be passed if 98 Holdings votes in favor of it.


NEPTUNE ORIENT: Shareholders Approve Sale of AET
------------------------------------------------
Shareholders of Neptune Orient Lines (NOL) have approved the
sale of the Company's crude oil transportation Company American
Eagle Tankers (AET) to Malaysia International Shipping
Corporation Berhad (MISC).

NOL shareholders at an Extraordinary General Meeting in
Singapore today voted unanimously in favor of the proposed sale
of the entire share capital of AET, which is still subject to
the approval of MISC shareholders.

NOL Chairman Cheng Wai Keung welcomed the favorable response and
thanked shareholders for their support for the proposal, which
paves the way for the NOL Group's exit from the crude oil
transportation business.

"This is a strategic move that will allow us to focus on our
core container transportation and logistics businesses, APL and
APL Logistics, while at the same time strengthening our balance
sheet and unlocking value for shareholders," he said.

Executive Director and CFO, Lim How Teck said that under the
terms of the agreement, MISC will pay a purchase price for
equity of US$445 million in cash at closing for the acquisition
of the lightering specialist company, which today operates 29
Aframax tankers and two Very Large Crude Carriers (VLCCs),
principally in the Gulf of Mexico/Atlantic basin. MISC will also
fund a US$75 million cash dividend from AET to NOL.

The purchase price is also subject to adjustment on a dollar-to-
dollar basis for the profits earned from February 8, 2003 to the
closing date. MISC has agreed as well to increase the equity
price should AET achieve certain performance milestones over the
next two years.

"As a result of the strategic divestment, the NOL Group is
expected to reduce its debt burden, with net gearing cut by
approximately half," Mr Lim said.

Pursuant to approval by MISC shareholders and regulatory
approval, the sale of AET will be completed by the end of July
2003.

Media inquiries
Sarah Lockie
+65-6371-5022
sarah_lockie@nol.com.sg

ABOUT NOL

NOL is a Singapore-based global transportation and logistics
company engaged in shipping and related businesses. Its
container transportation arm, APL Liner, provides customers
around the world with container transportation services that
combine high quality inter-modal operations with state-of-the-
art information technology, while APL Logistics provides end-to-
end supply chain management services through its global network.
Its crude oil transportation company, American Eagle Tankers
(AET) provides quality services to the oil industry, principally
in the Caribbean and Gulf of Mexico region, currently operating
29 Aframax tankers, of which seven are chartered in, and two
VLCCs.


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


JASMIN INT'L: Issues Update on Rehabilitation Plan
--------------------------------------------------
Jasmine International Public Company Limited, by Cheangwatana
Planner Co., Ltd., as the Company's planner, announced that, as
the Central Bankruptcy Court has held a session to consider
approving the Rehabilitation Plan (the Plan) and creditor
classification on 28 May 2003, the Central Bankruptcy Court
ordered to dismiss against the creditor classification objection
lodged by the creditors which meant that the creditor
classification by the Company's planner is correct.  

Furthermore, the Central Bankruptcy Court has rendered the order
for evidence hearing in consideration of the Plan on 18 June, 10
and 11 July 2003 respectively.  The Company will promptly inform
you detail and progress accordingly.  

As for the progress of the Business Rehabilitation of Jasmine
International Overseas Co., Ltd. (JIOC), which is the Company's
subsidiary, on 26 May 2003 at 9:00 a.m., certain creditors of
JIOC have lodged petitions against the plan approval of JIOC,
and, thus the Central Bankruptcy Court informed the planner of
JIOC and the official receiver to provide the explanations
within 9 June 2003 and scheduled to render the order regarding
the plan approval of JIOC on 8 July 2003 at 9:00 a.m.





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
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USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick,
Mavy Nineza-Merlin, Ma. Cristina Pernites-Lao, Editors.

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

This material is copyrighted and any commercial use, resale or
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