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       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, June 5, 2003 Vol. 6, No. 110

                         Headlines

A U S T R A L I A

AUSTRALIAN MAGNESIUM: Unlikely to Last Until Plant Opening
AUSTRALIAN MAGNESIUM: Queensland Still Willing to 'Support' Firm
MIM HOLDINGS: Xstrata Confident of 60% 'Yes' Votes Tomorrow
PASMINCO LIMITED: Believed to be Negotiating for Tax Concessions
PASMINCO LIMITED: CEO Says 'Re-float' Won't Happen this Year


C H I N A   &   H O N G  K O N G

CHAN WING: General Creditors Meeting Set for June 11
CHEUNG CHUI: Official Receiver to Host Creditors Meeting June 11
CHINA GAS: Executive Director Steps Down for Unknown Reason
KIEN HUNG: Four Seized Ships to be Auctioned Next Month
KOO KAM: General Meeting of Creditors Next Week, Says Receiver

MALAYSIA ELECTRIC: Proofs of Claim Must be in June 14
MAVERICKS FILMS: Deadline for Proofs of Claim June 13
NG FOOK: Court to Hear Annulment of Bankruptcy Order June 18
NG SHI: Creditors Have Until Next Week to Prove Claim
NONGKAI DEVELOPMENT: Chief Accused of Fraud, Under House Arrest


I N D O N E S I A

BANK MANDIRI: Lowers Shares To Be Offered at IPO to 15%
INDOMOBIL SUKSES: Reports Rp970 Million Net Profit for FY2002

* Agency Eyes 84% Success Rate in Debt-restructuring Efforts


J A P A N

JAPAN AIRLINES: Seeking Volunteers to Take Unpaid Holiday
NISSHO IWAI: Receives Two Equipment Orders from POSCO
RESONA HOLDINGS: Ohtsuka Alleges FSA Pressured Auditors
SUMITOMO REALTY: JCR Assigns BBB Ratings


K O R E A

CHOHUNG BANK: Sale Talks to Wrap up Soon
CHOHUNG BANK: Issues W300B Bonds on June 28
DAEWOO MOTOR: GM Ends China Engine Plant Talks
DAEWOO SHIPBUILDING: Issues US$225.7M in GDR's
HYNIX SEMICONDUCTOR: Receives Final Ruling on June 16

HYUNDAI CORPORATION: Creditors Consider Restructuring
KOOKMIN BANK: S&P Downgrades Rating Outlook to Negative
SK GLOBAL: Sells 1.4M SK Telecom Shares
SK GLOBAL: Hana Bank Comments on Due Diligence
SK GLOBAL: Selling Assets in Group Affiliates


M A L A Y S I A

BESCORP INDUSTRIES: Unveils Separation of Subsidiaries
BESCORP INDUSTRIES: AGM Set For June 26
EPE POWER: Defaults on Interest Payment
GEORGE KENT: Issues Debt Restructuring Proposal
JUTAJAYA HOLDING: FIC OK's Debt Restructuring Scheme

KSU HOLDINGS: Postpones Winding Up Hearing on July 1
KSU HOLDINGS: EON Bank Sues Firm
SRI HARTAMAS: Revises Terms of Reconstruction Agreement
VISIONSCAPE SDN: Enters Winding Up Petition


P H I L I P P I N E S

FIRST PHILIPPINE: Repays P1.0B of its Debt
MANILA ELECTRIC: Clarifies 2Q Profit Forecast Report
MANILA ELECTRIC: Agrees to Renegotiate IPP Contracts
PHILIPPINE LONG: Unit Enters Alliance With ElephantTalk


S I N G A P O R E

HOTEL NEGARA: Unveils Disposal of Property
MEDIASTREAM LIMITED: Clarifies Trading Suspension Report
NEPTUNE ORIENT: Posts Notice of Shareholder's Interest
SEATOWN CORPORATION: Auditor Issues FY02 Financial Statement


T H A I L A N D

BANGCHAK PETROLEUM: Government Agrees to Guarantee THB3.6B Loan

     -  -  -  -  -  -  -  -

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


AUSTRALIAN MAGNESIUM: Unlikely to Last Until Plant Opening
----------------------------------------------------------
Administrators or receivers would likely be appointed for
Australian Magnesium Corporation, which according to Shaw
Online, held crisis talks with creditors and engineering
contractor, Leighton Holdings, throughout Tuesday.

The company, already AU$500 million in debt as a result of the
project, has admitted to desperately needing a AU$200 million-
cash injection.  Last week, CEO Rod Sharp said unless a white
knight could be found quickly, the project was in danger of
collapse.

Located 25 kilometers south west of Rockhampton, the plant is
supposed to be operational in the second quarter of 2004,
ramping up to full production in 2007.  The company forecasts
that it would be profitable by 2006, according to Shaw Online.  
But at the end of March, construction of the plant, which is now
10 years in the making, was only 3.5% complete although the
engineering work was 55% complete and procurement of essential
materials was 66% complete, the report said.

Shaw Online says the federal and Queensland governments are the
company's largest creditors, being owed about AU$400 million.  
Shares closed 19c Tuesday, 63% down from last year's level.


AUSTRALIAN MAGNESIUM: Queensland Still Willing to 'Support' Firm
----------------------------------------------------------------
Queensland Premier Peter Beattie reiterated Wednesday his
support for the Australian Magnesium Corporation Limited, the
troubled firm building a AU$1.5 billion plant within the state
borders.

According to Asia Pulse, state officials and relevant
stakeholders were expected to meet with company officials
yesterday to try to find ways to save the multi-billion-dollar
project.

The Queensland government has so far committed AU$150 million
(US$98.92 million) to the company to underwrite diviand
payments, including AU$50 million (US$32.98 million) worth of
infrastructure work at an industrial park to support the
smelter, Asia Pulse said.  The federal government has loaned the
project AU$100 million (US$65.95 million), while the CSIRO is
owed AU$50 million (US$32.98 million).

Mr. Beattie, in his remark to the parliament, did not say
however what the state government plans to do or whether or not
it will grant additional loan to the company.


MIM HOLDINGS: Xstrata Confident of 60% 'Yes' Votes Tomorrow
-----------------------------------------------------------
Peter Coates, managing director of Xstrata Coal Australia Pty
Ltd., says shareholders of MIM Holdings Ltd. have only two
choices when they vote on the Xstrata takeover bid Friday: Take
it or leave it.

Mr. Coates, who has appeared in several nationwide ads to rally
support for the bid, said the company and its Anglo-Swiss
parents will just walk away if they will not get 50% support on
Friday.  He is confident, however, that at least 60% of
shareholders will vote in favor.

"We know the majority of shareholders want the transaction to
proceed and we're confident if they vote -- and we think our
[ad] campaign will get them to vote -- that we'll succeed," he
told the Advertiser recently.

Asked whether his company will consider an on-market bid if the
cash offer of AU$1.72 a share was thrown out, Mr. Coates
replied: "We have no plans to do anything else.  If this fails,
we could well just walk away."

Mr. Coates said he had expected the bid to meet resistance even
before embarking it.  This, considering the increasing
resistance in Australia to offshore takeovers -- which is why he
appeared in the advertisements, saying it was going to be a
company run by Australians.

"The reality is, whether the ownership is with offshore
investors or local people or anyone else, the business is run by
Australians for Australians and that is the message we are
trying to sell," he told the Advertiser.

Still, the Australian Shareholders Association decided Monday to
oppose the offer, saying it was too low.  The opposition of fund
manager Platinum Asset Management, which has lodged 9700 "No"
votes, has also boosted the anti-Xstrata campaign championed by
MIM CEO Vince Gauci, the paper said.

Platinum has claimed that Xstrata's US rival, Phelps Dodge Corp
could make a higher offer if MIM shareholders spurned Xstrata.
Xstrata argues, however, that Phelps Dodge would have come
forward already if it was prepared to pay more than AU$1.72.  
Phelps Dodge has declined to comment on the issue, the paper
said.


PASMINCO LIMITED: Believed to be Negotiating for Tax Concessions
----------------------------------------------------------------
Pasminco Limited, the world's largest zinc producer, is
reportedly seeking tax concessions from the state governments of
Queensland, Tasmania and South Australia.

Pasminco Spokesman Trevor Shard was quoted by Shaw Online as
saying recently: "But we have met with each of the governments
and they are all understanding of our situation."

Although he did not discuss the level of help sought by the
company, many believe it is seeking assistance by way of payroll
tax relief, reduced royalty payments and power costs.  Under
administration since 2001 with debts of more than AU$2.6
billion, the company has been hurt lately by the rise of the
Australian dollar and low metal prices.

Mr. Shard told Shaw Online the company is hoping the three
governments will recognize its substantial contributions in each
state through mines such as Century in Queensland and Rosebery
in Tasmania, as well as smelters in Tasmania and South
Australia.


PASMINCO LIMITED: CEO Says 'Re-float' Won't Happen this Year
------------------------------------------------------------
There is no chance that Pasminco Limited, the world's largest
zinc and lead miner, will re-list on the stock market this year,
according to CEO Greig Gailey.

"Until there is some sign of recovery, which I think will
largely be driven on the back of the U.S. economy, it wouldn't
be appropriate to take the company to market and the creditors
have come to the view that is unlikely to happen in the current
calendar year," Mr. Gailey told Reuters in an interview
recently.

Mr. Gailey said until its return to the market, the company will
focus on reducing cost and steer clear of trouble as zinc prices
fall.  The company entered voluntary administration in September
2001 after it ran up AU$3 billion in debts because of bad
currency hedging and low metal prices.  It called off a plan to
re-float in Australia last November, Reuters said.



================================
C H I N A   &   H O N G  K O N G
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CHAN WING: General Creditors Meeting Set for June 11
----------------------------------------------------
E.T. O'Connell, official receiver of Chan Wing Hang Gary,
announces that creditors of the company will have a general
meeting on June 11, 2003 at 11:30 in the morning.  Venue will be
at his office on the 10th Floor, Queensway Government Offices,
66 Queensway, Hong Kong.


CHEUNG CHUI: Official Receiver to Host Creditors Meeting June 11
----------------------------------------------------------------
E.T. O'Connell, official receiver of Cheung Chui Lin Key,
announces that creditors of the company will have a general
meeting on June 11 at 12:00 noon at his office on 10th Floor,
Queensway Government Offices, 66 Queensway, Hong Kong.


CHINA GAS: Executive Director Steps Down for Unknown Reason
-----------------------------------------------------------
Executive Director Liu Yujie has resigned from the board of
China gas Holdings Limited effective June 2, 2003, the company
said in a statement to the Hong Kong Stock Exchange Monday.

Xu Ying, currently a non-executive director, will replace Ms.
Liu as executive director, the company added.  It did not
indicate the reason for Ms. Liu's departure.

Dragged down by a HK$9.23 million impairment loss from
investments in securities and a HK$6.1 million amortization of
goodwill, the company reported in December a net loss of
HK$13.88 million for the first half ended September 30.  The
amount was a huge jump from just HK$1.07 million a year earlier.


KIEN HUNG: Four Seized Ships to be Auctioned Next Month
-------------------------------------------------------
Hong Kong-based lawyers representing Taiwan banks have seized
another container ship of troubled Taiwanese shipping line, Kien
Hung, The Standard said yesterday.

The Kingdom Container, according to the report, was seized
Monday, adding to three others now anchored off the harbor of
Hong Kong.  Solicitors are now readying the papers necessary to
auction the ship, along with Liberty Container, Mandarin
Container and Convenience Container.  The Liberty Container is
currently held by law firm Deacons, acting on behalf of Hong
Kong's Yiu Lian Dockyards, while the others are detained by
solicitors Jonathan Rostron, the paper said.

At least two groups of Taiwan mortgagee banks have reserved
their claims on the seized ships, but there are several
outstanding High Court writs claiming more than US$43 million in
the Kien Hung fleet.

Partner Jonathan Rostron confirmed the firm would be applying to
the court next week for approval to sell the four vessels at
auction.  Tim Huxley, managing director of international
shipbroker Clarksons Asia, told The Standard there had already
been significant interest in the vessels from potential buyers
in Asia and Europe.

Mr. Rostron estimates the ships, which can carry between 1,400
TEUs (20 foot equivalent units) and 1,500 TEUs, would be sold
for "in excess of US$17 million each."  He said a public auction
could be held within a month, although this would depend on how
quickly legal issues could be dealt with, including getting a
judge to grant an order approving the sale by auction.

Mr. Rostron is acting on behalf of the Grand Commercial Bank,
which ordered the seizure of the Convenience Container last
week.  The other three ships were seized on the instructions of
a consortium of banks led by First Commercial.  Mr. Rostron said
four other ships, which have writs against them, might be seized
if legal actions prosper.

Kien Hung still has Ace Container, Excellence Container, Justice
Container and Prosperity Container in its fleet.


KOO KAM: General Meeting of Creditors Next Week, Says Receiver
--------------------------------------------------------------
Creditors of Koo Kam Chor will have a general meeting on June 10
at 11 in the morning, according to official receiver, E.T.
O'Connell.  The meeting will be held on the 10th Floor,
Queensway Government Offices, 66 Queensway, Hong Kong.


MALAYSIA ELECTRIC: Proofs of Claim Must be in June 14
-----------------------------------------------------
Creditors of Malaysia Electric Corporation (HK) Limited have
until June 14, 2003 to submit their proofs of claim, according
to official receiver and liquidator, E.T. O'Connell.  The proofs
must be mailed to his office on the 10th Floor, Queensway
Government Offices, 66 Queensway, Hong Kong.


MAVERICKS FILMS: Deadline for Proofs of Claim June 13
-----------------------------------------------------
Creditors of Mavericks Films Limited have until June 13, 2003 to
submit their proofs of claim, according to official receiver and
liquidator, E.T. O'Connell.  The proofs must be mailed to his
office on the 10th Floor, Queensway Government Offices, 66
Queensway, Hong Kong.


NG FOOK: Court to Hear Annulment of Bankruptcy Order June 18
------------------------------------------------------------
Take notice that the High Court has appointed Wednesday, June
18, 2003 at 11:30 a.m. to hear the application of Official
Receiver on behalf of Ng Fook Por pursuant to Section 33(1)(b)
of the Bankruptcy Ordinance to annual the bankruptcy order made
against the Bankrupt on March 21, 2000.

Any creditor who wishes to support or oppose the application to
annual the bankruptcy order shall give notice in writing to the
official receiver on the 10 Floor, Queensway Government Offices,
66 Queensway, Hong Kong, by June 6, 2003 and may appear at the
High Court on the appointed day for the purpose by himself or
his solicitor.


NG SHI: Creditors Have Until Next Week to Prove Claim
-----------------------------------------------------
Notice is hereby given that dividends are intended to be
declared by Ng Shi Wan.  Creditors who have not proven their
debts by June 14, 2003 will be excluded from the dividends,
according to Official Receiver and Trustee E.T. O'Connell.


NONGKAI DEVELOPMENT: Chief Accused of Fraud, Under House Arrest
---------------------------------------------------------------
Shares of stationary maker, Daying Modern Agriculture, dropped
sharply on Monday and Tuesday after reports aired that Chinese
property tycoon, Zhou Zhengyi, had been under house arrest since
May 26, Reuters said yesterday.

Mr. Zhou is reported to be at the center of an investigation
into countless number of business irregularities.  Accordingly,
state auditors had recently raided the businessman's trade and
real estate conglomerate, Nongkai Development (Group) Co. and
seized financial data.  The subject of the probe ranges from
questionable loans to fraud, Reuters said citing the China
Securities Journal.

"The Shanghai authorities have placed Zhou Zhengyi under house
arrest since May 26.  Nongkai and its subsidiaries are being
investigated for irregularities in their business dealings," the
Journal said.

Reuters said Mr. Zhou is the latest in a string of Chinese
corporate moguls to come under official scrutiny.  A flamboyant
businessman, he rose from mere noodle-shop owner to become the
head of a business empire spanning real estate to finance.  
Recently, he was ranked China's 11th-richest person by Forbes
magazine.

The report said Mr. Zhou is being suspected of obtaining loans
via shell companies set up by relatives and using those loans to
speculate in stock or in improper ways.  Nongkai's subsidiaries
were also suspected of falsifying receipts, it added.

Chinese state newspapers reported at the weekend that a probe
had been launched into two billion yuan ($240 million) in loans
Mr. Zhou had obtained from the Bank of China, one of the
country's four largest.  Over the weekend, Hong Kong's anti-
graft agency arrested Mr. Zhou's wife, Mao Yuping, although Hong
Kong media reports said she had since been released on bail.

Reuters said Mr. Zhou is currently the chairman of Shanghai Land
Holdings Ltd., while his wife is chairwoman of Shanghai
Merchants Holdings Ltd.  Both stocks, listed in Hong Kong, have
been suspended from trade pending clarification of the reported
allegations.

In China, Daying's hard currency B shares closed at $0.507
Tuesday, while its yuan-denominated A shares ended at 9.71 yuan.
Nongkai subsidiaries make up the majority of Daying's
shareholders.


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


BANK MANDIRI: Lowers Shares To Be Offered at IPO to 15%
-------------------------------------------------------
State-owned Bank Mandiri is only expecting a modest
participation rate at its IPO next month, as market condition
remains bleak and sentiments on the country's banking sector
continue to be poor.

Reuters says the bank would likely offer just 10-15% of its
shares, down from the original 30%.  In its prospectus published
in Bisnis Indonesia, Bank Mandiri said proceeds from the share
sale would be used by the government.  A 30% offering, according
to some analysts, would generate US$600 million.

At the end of last year, Mandiri had total assets of 250.4
trillion rupiah ($30.3 billion).  It posted an annual net profit
of 3.59 trillion rupiah, up 31 percent from a year earlier.


INDOMOBIL SUKSES: Reports Rp970 Million Net Profit for FY2002
-------------------------------------------------------------
After posting a Rp51.4 billion net loss the previous fiscal
year, PT Indomobil Sukses International bared recently a Rp970
billion net profit for FY2002, the Jakarta Post said Tuesday.

The company, Indonesia's second largest automotive assembler,
credited its subsidiaries -- which booked a total profit of
Rp888 billion -- for the sharp turnaround.  Currency gains and
sales made up the balance, the paper said.  The company said
sales in 2002 reached Rp9.1 trillion, a 23% improvement from
Rp7.4 trillion in 2001.

The Jakarta Stock Exchange, according to the paper, had earlier
sent the company two warning letters for failure to release the
audited financial result, which was supposed to be in March 31.


* Agency Eyes 84% Success Rate in Debt-restructuring Efforts
------------------------------------------------------------
There are now only seven months left in the term of the Jakarta
Initiative Task Force, the agency set up in 1998 to help
companies restructure dollar-denominated debts, The Jakarta Post
said yesterday.

As of end of May, the agency said it has already helped
restructure US$20.3 billion in corporate debts and are just
working on 27 more cases.  

"We've completed the debt workouts for most of the companies.
There are only 27 cases left to work on.  We're optimistic we
can settle more than half of them within the next seven months,"
JITF Chief Operating Officer Samuel Tobing told The Jakarta
Post.

Mr. Samuel said these remaining cases combine for US$9.4 billion
worth of debt.  He said it is likely that half of this amount
will be restructured because of the recent strong performance of
the rupiah.

All in all, Mr. Samuel said 94 debt-restructuring workouts have
thus far been completed, almost half of which used a
rescheduling mechanism that makes the maturity profile of the
debts longer.  Other schemes that were also popular were debt-
to-equity and debt-to-bond swaps, as well as a scheme that
allows debtors to buy back their debts at discounted prices.

"And there are some that also use a combination of these.  It's
a matter of striking a balance between the interests of debtors
and creditors," Mr. Samuel told The Jakarta Post.

The agency was initially scheduled to be closed at the end of
2002, but it was extended for another year, although companies
will no longer enjoy a 30 percent tax discount facility as they
did before, the report said.

The agency works in tandem with the Indonesian Bank
Restructuring Agency, one of several special purpose vehicles
sought by the IMF to be established to help restructure huge
dollar-denominated debts incurred from foreign creditors at the
height of the Asian financial crisis in the late 1990s.


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


JAPAN AIRLINES: Seeking Volunteers to Take Unpaid Holiday
---------------------------------------------------------
Suffering from a steep drop in demand, Japan Airlines Co. (JAL)
will seek volunteers from among employees to take a month off
without pay, Japan Times reports. The temporary layoff program
will be launched in July and is expected to remain in force
until March. Some 17,000 JAL employees, excluding those who work
overseas, will be eligible to sign up for the expanded program.
The airline slashed its international flight schedule after the
Iraq war and the outbreak of severe acute respiratory syndrome
scared off potential holidaymakers.

Meanwhile, Japan Airlines System Corp (JAL) and All Nippon
Airways Co. suffered the lowest occupancy rate since such data
began to be compiled in January 1999, the Tokyo Airport
Administrative Office said.


NISSHO IWAI: Receives Two Equipment Orders from POSCO
-----------------------------------------------------
In collaboration with POSCO Engineering & Construction Co., Ltd.
of South Korea, Nippon Steel Corporation and Nissho Iwai
Corporation have received an order for 2 units of Coke Dry
Quenching equipment from POSCO (formerly known as Pohang Steel &
Iron Co., Ltd.) of South Korea, JCCN reports. The units will be
installed at the POSCO Gwangyang Works third and fourth ovens
respectively.

CDQ equipment is one of the key products of the Nippon Steel
Plant & Machinery Division. Recently, the Company received
consecutive orders to build a new CDQ unit for Wuhan Iron and
Steel Company and a No.2 CDQ unit for Shougang Iron and Steel
Corporation. In addition, Nippon Steel has experience in
remodeling similar equipment in Brazil and Taiwan, which
equipment was constructed and delivered by other companies. The
Nippon Steel manufactured CDQ unit is equipped with a charging
device to disperse coke, which technology is unique to the
Company, a feed water pre-heater, etc. The unit has a high
cooling capacity, and enables efficient heat recovery with
little cooling gas. Furthermore, through the fitting of a
continuous discharge device, the unit excels in compactness and
ease of maintenance operations.

The CDQ equipment uses inert gas, which circulates through a
quenching chamber, to process quenching and cooling of red-hot
coke that is dry distilled in a coke oven. The introduction of
CDQ equipment has excellent benefits, such that it is
environment-friendly equipment as coke is quenched in the sealed
quenching chamber, preventing the dust emission that is
considered to be an issue in conventional wet quenching.
Furthermore, the sensible heat of the red-hot coke is recovered
and heat-exchanged into steam by a boiler, with the generated
steam then used for power generation. The slow cooling of the
red-hot coke in the CDQ equipment also improves coke quality and
stabilizes blast furnace operations.

Trading houses Nissho Iwai Corporation and Nichimen Corporation,
which integrated their management under a holding Company named
Iwai- Nichimen Holdings Corporation on April 1, both incurred
group net losses of 122.38 billion yen last year, according to
the Troubled Company Reporter-Asia Pacific. The firms attributed
the results to cost write-offs associated with the
consolidation. Nissho Iwai incurred a group net loss of 73.85
billion yen. The Company also booked an extraordinary loss of
110.91 billion yen, resulting primarily from expenses linked to
asset disposal, business restructuring and other integration
factors.

Visit NIPPON STEEL CORPORATION at
www.nsc.co.jp/english/index.html
Visit Nissho Iwai Corporation at www.nisshoiwai.co.jp/nic/E-
nic.html


RESONA HOLDINGS: Ohtsuka Alleges FSA Pressured Auditors
-------------------------------------------------------
Japan's opposition Democratic Party on Wednesday presented
allegations to parliament that the Financial Services Agency
(FSA) pressured the auditor of Resona Holdings to approve the
troubled bank's accounts, the Financial Times reports, citing
Parliament member Kohei Ohtsuka.

Ohstuka claimed the documents, obtained from Resona officials,
contradicted assertions from the FSA that it did not intervene
in the auditor's decision to question Resona's accounts. Resona
was forced to seek a bailout from the government after its
auditors refused to approve its accounts. Ohstuka said his
allegations could lead to action by prosecutors.

The FSA, which regulates both banks and accounting firms, said
it never intervened in private audits. Ohtsuka claims new
eviance will show the agency collaborated with Resona to try to
smooth over differences with the auditor, which he said would be
a breach of Japan's Securities Exchange Law.


SUMITOMO REALTY: JCR Assigns BBB Ratings
----------------------------------------
Japan Credit Rating Agency (JCR) has assigned BBB ratings to the
two series of bonds to be issued under the shelf registration of
Sumitomo Realty & Development.

Issues Amount (bn) Issue Date Due Date Coupon

Bonds no.44 Y20 / June 26, 2003 / June 26, 2007 / 1.40 percent
Bonds no.45 Y10 / June 26, 2003 / June 26, 2007 / 1.40 percent

Covenants: Negative Pledge & Collateralized Commissioned
Company: Yes

Shelf Registration: Maximum: Y200 billion Valid: two years from
May 9, 2003

RATIONALE:

Sumitomo Realty & Development is a major real estate Company of
Sumitomo group. The earnings power has been on the rise
steadily, supported by increase in the floor space of leased
properties and brisk sales of condominiums. On the other hand,
the interest- bearing debt and other debt including deposits
remain high. Given the insufficient risk buffer of net assets
for expansion of real estate business, further cut in the
interest-bearing debt should be made. JCR will pay attention to
the going of the cutback in the interest-bearing debt.


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


CHOHUNG BANK: Sale Talks to Wrap up Soon
----------------------------------------
The Korea Deposit Insurance Corporation (KDIC) and Shinhan
Financial Group (SFG) have agreed to wrap up their talks on
Shinhan's takeover of the bank as early as possible, Asia Times
reports. The two parties met Monday to exchange opinions on the
terms of Chohung sale in a switch from indirect contact through
financial advisers.


CHOHUNG BANK: Issues W300B Bonds on June 28
-------------------------------------------
Chohung Bank plans to issue 300 billion won (US$249.4 million)
in 30-year hybrid securities on June 28, Reuters said on
Wednesday, citing Chohung Bank official Lee Gon-hank. The bond
is expected to carry a yield of about 7.8 percent.

Chohung Bank's labor union alleged that during a general strike
by bank employees in July 2000, the government and the bank
signed a backdoor agreement, in which the government promised to
keep the bank independent, the Troubled Company Reporter-Asia
reported recently. The union claimed that the current steps
taken by the government to sell off the bank are in violation of
the agreement.

In July 2000, union members from most of the nation's banks held
with a general strike in protest of government-initiated
financial sector restructuring. The strike ended when the
government and the union reached a settlement, which is seen as
having diluted the government's drive to reform the financial
sector.


DAEWOO MOTOR: GM Ends China Engine Plant Talks
----------------------------------------------
General Motors Corporation has called off talks with
shareholders and creditors of Daewoo Motor Co. to buy Daewoo's
Chinese engine plant in Yantai Shandong province for US$228
million, according to Reuters on Tuesday.

Daewoo officials said talks hinged on a price for the Chinese
engine venture, which GM said the ailing Asian automaker wanted
to sell. Daewoo's Chinese engine plant was set up in 1999 with
the Shandong government and Daewoo holding 50 percent each.


DAEWOO SHIPBUILDING: Issues US$225.7M in GDR's
----------------------------------------------
Daewoo Shipbuilding and Marine Engineering Co. on Tuesday issued
US$225.7 million of global depositary receipts (GDR's) at
US$15.64 per unit, Reuters said on Tuesday, citing JP Morgan,
one of the bookrunners. The transaction was part of a move by
the Korea Development Bank (KDB) and Korea Asset Management
Corporation (KAMCO) to reduce their stake in the Company. JP
Morgan and Goldman Sachs are the bookrunners and global
coordinators of the transaction.

The shipbuilder has been under creditors-led corporate
restructuring program since 1999 along with some 10 other
affiliates after its parent Daewoo Group, now defunct, collapsed
under heavy debt exposure. KDB and KAMCO plan to sell off their
remaining stakes.


HYNIX SEMICONDUCTOR: Receives Final Ruling on June 16
-----------------------------------------------------
Hynix Semiconductor Manufacturing will receive a final ruling on
June 16 on whether it will have a 57 percent import tax imposed
on its products by the United States, DebtTraders reports.

The U.S. earlier ruled in favor of Micron Technology on loans
and guarantees to Hynix from the Korean government. The European
Commission imported a 33 percent import tax on Hynix's products
after Infineon filed a similar complaint in April. Creditors
have bailed out the chipmaker three times in the past two years
through debt rollover.


HYUNDAI CORPORATION: Creditors Consider Restructuring
-----------------------------------------------------
Creditors of troubled Hyundai Corporation are considering
applying a corporate restructuring promotion law to the trading
Company and managing it jointly as part of efforts to put it
back on track, Asia Times reports.

Before bailing out the Company, however, the creditors will call
on the Company to present a drastic self-rescue plan or enlist
lawful financial aid from Hyundai Motor and Hyundai Heavy
Industries, its former affiliates.


KOOKMIN BANK: S&P Downgrades Rating Outlook to Negative
-------------------------------------------------------
Standard & Poor's Ratings Services on Tuesday revised its
outlook on the long-term rating on Kookmin Bank to negative from
stable. At the same time, Standard & Poor's affirmed its 'BBB+'
long-term and 'A-2' short-term counterparty credit ratings on
the bank.

The outlook revision reflects concerns over Kookmin's credit to
small and midsize enterprises (SMEs) amid the downturn in the
macroeconomy. The outlook also incorporates the bank's weakened
earnings prospect due to relatively large exposure to card
credit, and its ability to manage these risks over the next few
years. Kookmin's planned merger with Kookmin Credit Card Co. Ltd
does not affect its credit ratings as risks from the card
business of the subsidiary have already been factored into the
current ratings.

``The rising delinquent credit to SMEs and the deepening concern
over household credit will continue to hurt the bank's earnings
and asset quality for the next few quarters," S&P credit analyst
Choil Young-il said. ``Plunging consumption and uncertain export
prospects are likely to further damage the bank's credit to
SMEs," he added.

Losses from card credit, accounting for about 14 percent of
total credit on a consolidated basis, has slashed the bank's
earnings since the fourth quarter of 2002. Although losses from
card credit could subside if the bank charged higher interest
rates on credit cards, deepening concerns over households'
credit profiles will continue to pressure the asset quality of
Kookmin's card assets. Delinquency on noncard assets is rising,
but is still manageable.

Kookmin has taken relatively decisive action to address its
problems, curtailing credit to individuals with weaker credit
profiles in late 2002, and focusing on managing credit risks
rather than increasing assets. Accordingly, risk assets at March
2003 remained at the same level as at the end of 2002. In
addition, in an effort to improve corporate governance, the bank
hired more nonstanding outside directors in March 2003.

Kookmin's merger with its card subsidiary does not affect its
credit ratings as Standard & Poor's analysis is conducted on a
consolidated basis. On May 30, 2003, Kookmin decided to merge
with its card subsidiary Kookmin Credit Card. Kookmin Bank has a
74 percent ownership stake in the subsidiary. Shareholders in
the card subsidiary objecting the merger will exercise reprisal
rights, and the bank will pay the reprisal value to those
shareholders in cash. Assuming all shareholders of the card
subsidiary exercise reprisal rights, the cost will lower the
bank's capitalization by about only 0.2 percent. The merger is
likely to reduce losses from the card business because the
bank's funding costs have been lower than its subsidiary's by
about 2 percent. However, other cost synergies will only be
achieved gradually because the subsidiary's labor union strongly
objects to aggressive staff cuts.
     

SK GLOBAL: Sells 1.4M SK Telecom Shares
---------------------------------------
SK Global Co., the trading arm of SK Group, will sell 1.4
million shares in SK Telecom Co. to raise cash as part of its
restructuring scheme, Reuters reported Wednesday. Creditors and
the SK Group are nearing a compromise in rescuing SK Global, the
Troubled Company Reporter-Asia Pacific reported recently. The de
facto agreement came out on Monday as the SK Group agreed to
commit more funds to rescue the firm.


SK GLOBAL: Hana Bank Comments on Due Diligence
----------------------------------------------
Keeping alive troubled SK Global Co. would generate more value
than liquidating it immediately, Reuters said, citing main
creditor Hana Bank. The comment came a day after domestic
creditors gave their initial approval to a two trillion won
($1.66 billion) bailout plan proposed by SK Global's parent SK
Group.

"The final due diligence by a local accounting firm found
keeping SK Global afloat would generate some 2.5 trillion won
($2.08 billion) more than liquidating it," said a spokesman at
Hana Bank.

SK Global, the trading arm of SK Group, has been on the verge of
bankruptcy after a US$1.2 billion accounting fraud was unearthed
in March, sending shock waves through financial markets. A final
decision on the fate of SK Global is expected in about two weeks
after further discussion among lenders.


SK GLOBAL: Selling Assets in Group Affiliates
---------------------------------------------
SK Global will sell its shareholdings in other group affiliates
to raise 959.5 billion won as part of its restructuring scheme,
the Korea Herald said on Wednesday. The affiliates include
including SK Telecom Co., SK Gas Co. and SK Securities Co. The
trading firm will sell all of its 0.35 percent stake in the gas
Company and a 14.47 percent stake in the brokerage unit. It will
also dispose of its shareholdings in other companies, including
283,000 shares in POSCO.

SK Global hopes to raise another 97.3 billion won by retrieving
the deposits for renting offices in the group's head office
building in downtown Seoul and by selling its holdings of real-
estate assets. Also under the plan, the trading firm aims to
increase its average annual earnings before interests, taxes,
depreciation and amortization to 457 billion won by 2005 from
the current 180 billion won. The Company also proposed
reorganizing its business portfolio, focusing on
telecommunication equipment distribution, oil product sales,
global trading of industrial materials and fashion distribution.


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


BESCORP INDUSTRIES: Unveils Separation of Subsidiaries
------------------------------------------------------
Bescorp Berhad (Special Administrators Appointed) refers to the
announcement made on behalf of the Company by Commerce
International Merchant Bankers Berhad CIMB on 20 May 2003 in
relation to the Corporate Proposals.

On behalf of the Company, CIMB announced that the Company, WCT
Engineering Berhad WCT and WCT Land Sdn Bhd (formerly known as
WCT Realty Sdn Bhd) WCTL, a wholly-owned subsidiary of WCT, have
accepted the conditions imposed by the Securities Commission SC
via its letter dated 9 May 2003 Approval Letter, save for the
following conditions:

(i) The Boards of Directors and key management of WCTL and its
subsidiaries and WCT and its subsidiaries are required to be
separated. In this connection, WCTL is required to submit a
letter of undertaking to confirm this within a period of 12
months from the date of the Approval Letter; and

(ii) WCTL is required to fully comply with the relevant
conditions of its properties stipulated by the SC as set out in
Table I prior to the implementation of the proposed acquisition
of BIB.

In view of the above, on behalf of the Company, CIMB wishes to
announce that an application has been submitted to the SC on 3
June 2003 to seek a waiver/modification on the aforesaid
conditions imposed by the SC.

For a copy of the conditions imposed by the Securities
Commission on the WCTL Properties, please visit
http://bankrupt.com/misc/tcrap_Bescorp0604.doc


BESCORP INDUSTRIES: AGM Set For June 26
---------------------------------------
The Tenth Annual General Meeting (AGM) of Bescorp Industries
will be held at Melati 3, Sheraton Subang Hotel and Towers,
Jalan SS12/1, 47500 Subang Jaya, Selangor Darul Ehsan on
Thursday, 26 June 2003 at 2.00 p.m. to transact the following
businesses:

Notes:

(1) A proxy may but need not be a member of the Company and the
provisions of Section 149(1)(b) of the Companies Act, 1965 shall
not apply to the Company.

(2) The instrument appointing a proxy, in the case of an
individual, shall be signed by his attorney duly authorized in
writing, and in the case of a corporation, shall be either given
under its common seal or under the hand of an officer or
attorney of the corporation duly authorized.

(3) The instrument appointing the proxy must be deposited at the
Registered Office of the Company at Unit 725, 7th Floor, Block
A, Kelana Centre Point, No 3 Jalan SS7/19 Kelana Jaya, 47301
Petaling Jaya, Selangor Darul Ehsan not less than forty-eight
(48) hours before the time for holding the meeting or any
adjournment thereof.

(4) Where a member appoints more than one proxy, the appointment
shall be invalid unless he specifies the proportions of his
holding to be represented by each.


EPE POWER: Defaults on Interest Payment
---------------------------------------
Subsequent to the announcement dated 2 April 2003, EPE Power
Corporation Berhad has further defaulted in the payment of
monthly interest of RM745,810.34 due to several financial
institutions FIs under its revolving credit RC facilities.

EPE informed that under the Debt Restructuring Agreement DRA
that was executed in April 2003, interests due on these RC
amounts are to be given a waiver commencing 1 January 2003 until
31 December 2003. However, upon consulting the Company's
auditor, these waivers of interest on RC can only be recognised
upon completion of the proposed scheme as announced on 30 April
2003. The status of the default of principal amount remains the
same as previously announced.

EPE has fulfilled its obligation in making the Requisite
Announcement RA on 30 April 2003. (Refer to Announcement dated
30 April 2003)

c.c. Securities Commission (By Fax / Post)
The Issue and Investment Division
No.3, Persiaran Bukit Kiara
Bukit Kiara, 50490 Kuala Lumpur
(Fax No: 6201 5213)


GEORGE KENT: Issues Debt Restructuring Proposal
-----------------------------------------------
The Extraordinary General Meeting (AGM) of George Kent
(Malaysia) Berhad (GKM) will be held at the Company's Registered
Office, George Kent Technology Centre, Lot 1115, Batu 15 Jalan
Dengkil 47100 Puchong, Selangor Darul Ehsan on Thursday, 19 June
2003 at 12 noon, for the purpose of considering and if thought
fit, passing the following resolutions with or without
modifications:

Ordinary Resolution 1
Proposed Increase In Authorized Share Capital

"THAT the authorized share capital of the Company be and is
hereby increased from RM100,000,000 comprising of 200,000,000
ordinary shares of RM0.50 each to RM200,000,000 comprising of
400,000,000 ordinary shares of RM0.50 each by the creation of an
additional 200,000,000 new ordinary shares of RM0.50 each AND
THAT the Memorandum and Articles of Association of the Company
be amended to state the new authorised share capital
accordingly."

Ordinary Resolution 2
Proposed Debt Restructuring

"THAT subject to the passing of Ordinary Resolution 1 above and
the approvals of all relevant authorities, the Proposed Debt
Restructuring as embodied in each of the Debt Restructuring
Agreement DRA of GKM, DRA of GK-Hardie Sdn Bhd GKH and DRA of GK
Equities Sdn Bhd GKE all dated 20 March 2002 be and are hereby
approved AND THAT the Directors of the Company be and are hereby
authorised to undertake and implement the following:

(i) The proposed disposal by GKE of 23,270,000 ordinary shares
of RM0.50 each, representing a 7.52 percent equity interest in
Johan Holdings Berhad to Seamico Securities Public Company
Limited for a total cash consideration of RM8,958,950 or at a
price of RM0.385 per share as settlement of debts owing to
lenders;

(ii) Subject to the approval of all relevant authorities and the
approval in principle being granted by Kuala Lumpur Stock
Exchange for listing of and quotation for 73,687,043 new
ordinary shares of the Company to be issued at RM0.50 pursuant
to the Proposed Capitalization of Sale Portion, to allot and
issue to Malayan Banking Berhad, HSBC Bank Malaysia Berhad,
Deutsche Bank (Malaysia) Berhad, Bank of Nova Scotia Berhad,
AmMerchant Bank Berhad formerly known as Arab-Malaysian Merchant
Bank Berhad, Bumiputra-Commerce Bank Berhad, United Overseas
Bank (Malaysia) Berhad, RHB Bank Berhad and EON Bank Berhad
(collectively and hereinafter referred to as GKM Lenders)
73,687,043 new ordinary shares of RM0.50 each in the Company or
such number of new ordinary shares of RM0.50 each in the Company
as approved by the authorities, credited as fully paid-up, at
par or such other price as may be approved by the relevant
authorities in consideration of the sale of unsustainable debt
of RM38,985,358 to be capitalized by the Company under the terms
of the GKM DRA AND THAT such new ordinary shares shall, on
allotment and issue, rank pari passu in all respects with the
existing issued and paid-up shares of the Company except that
such new ordinary shall not be entitled to any rights,
allotments, dividends or distributions, the entitlement date of
which precedes the allotment date of such new ordinary shares;

(iii) Subject to the approval of all relevant authorities and
the approval in principle being granted by Kuala Lumpur Stock
Exchange for the admission to the Official List for the ICULS
and listing and quotation of all the ICULS to be issued and new
ordinary shares to be issued pursuant to the conversion of the
ICULS, approval be and is hereby given to the Company for the
creation and issue on a pro-rata basis to the GKM Lenders
RM33,382,000 nominal value of ICULS to be issued at 100 percent
of the nominal value with nil coupon rate and a tenure of ten
(10) years and convertible into new ordinary shares of RM0.50
each per RM0.50 nominal value of ICULS credited as fully paid as
settlement for debts owing to the GKM Lenders amounting to
RM29,270,000 AND THAT approval be given to the Company to enter
into a Trust Deed constituting the ICULS AND THAT approval be
and is hereby given for the Directors of the Company to allot
and issue, at any time commencing from the fifth anniversary up
to the tenth anniversary of the date of issue of the ICULS or
upon conversion of the ICULS to fully paid-up ordinary shares
being early conversion exercisable on the occurrence of an event
of default under the Proposed Syndicated Term Loan Facility and
Proposed Working Capital Facility whichever is earlier, such
number of new ordinary shares of RM0.50 each in the Company,
credited as fully paid at the conversion price as approved by
the relevant authorities AND THAT arising from the conversion of
ICULS such new ordinary shares upon allotment and issue, shall
rank pari passu in all respects with the existing issued and
paid-up shares of the Company except that such new ordinary
shares shall not be entitled to any rights, allotments,
distributions or dividends, the entitlement date of which
precedes the allotment date of such new ordinary shares;

AND THAT authority be given to the Directors to enter into any
agreements and arrangements to implement, finalize and given
full effect to the abovementioned transactions under the
Proposed Debt Restructuring with full powers to assent to any
conditions, variations, modifications and/or amendments as may
be required by the relevant authorities."

Ordinary Resolution 3
Proposed Call Option

"THAT subject to the passing of Ordinary Resolutions 1 and 2
above, the option granted by the Seamico Securities Public
Limited Company Investor to Dato' Tan Kay Hock and Datin Tan
Swee Bee and their Controlled Entities to purchase from the
Investor up to 73,687,043 ordinary shares of RM0.50 each in the
Company in accordance with the terms of the GKM Option Deed
dated 12 December 2002 and Deed of Rectification dated 19 May
2003 exercisable within 3 years from the date of acquisition of
the shares by the Investor at an exercise price ranging from
RM0.382 to RM0.649 per share be approved."

Ordinary Resolution 4
Proposed Establishment Of An Employee Share Option Scheme ESOS

"THAT subject to the approval of all relevant authorities being
obtained for the new Employee Share Option Scheme, the Directors
of the Company be and are hereby authorized:

(i) To establish and administer a new Employee Share Option
Scheme for eligible employees to the Company and its
subsidiaries the Group and full time executive directors of the
Company to be known as "GKM Employees' Share Option Scheme"
(hereinafter referred to as "Proposed New ESOS subject to such
amendments to the Proposed New ESOS Scheme as may be made or
required by the relevant authorities including any revisions to
the share allocation to eligible employees as may determined by
the Securities Commission, and any other relevant authorities
which are acceptable to the Directors;

(ii) To make the necessary applications and do all things
necessary at the appropriate time or times to the Kuala Lumpur
Stock Exchange for permission to deal in and for quotation of
the new shares of the Company which may from time to time be
allotted and issued pursuant to the Proposed New ESOS;

(iii) From time to time to allot and issue such number of new
ordinary shares of RM0.50 each in the Company to eligible
employees of the Group and full time executive directors of the
Company pursuant to their exercise of the Option under the
Proposed New ESOS provided that the aggregate number of shares
issued pursuant to the Proposed New ESOS, together with previous
employees' share option schemes, do not exceed 10 percent of the
issued capital of the Company at any point in time during the
existence of the Proposed New ESOS. The said ordinary shares
shall, upon allotment and issue, rank pari passu in all respects
with existing issued and paid-up ordinary shares in the Company,
except that they shall not be entitled to any rights,
allotments, distributions or dividend, the entitlement date of
which precedes the allotment date of such new ordinary shares
and will be subject to all the provisions of the Articles of
Association of the Company relating to transfer, transmission
and otherwise; and


(iv) To modify and/or amend the Proposed New ESOS from time to
time provided that such modifications and/or amendments are
effected in accordance with the provisions of the Proposed New
ESOS relating to modifications and/or amendments and to do all
such acts and to enter into all such transactions, arrangements
and agreements as may be necessary or expedient in order to give
full effect to the Proposed New ESOS;

AND THAT the Directors be and are hereby further authorized to
give effect to the Proposed New ESOS with full power to assent
to any modifications and/or amendments in any manner as may be
required by the relevant authorities."

Ordinary Resolution 5
Option Shares To Lee Pui Leng

"THAT subject to the passing of the Ordinary Resolution 4 above
and the approval of the relevant authorities, approval be and is
hereby given for the Company to offer and grant Mr Lee Pui Leng,
the Managing Director of the Company, options to subscribe for
the maximum allowable allotment of 400,000 new ordinary shares
of RM0.50 each in the Company under the Proposed New ESOS."

Notes:
Proxy
1. A member of the Company entitled to attend and vote is
entitled to appoint not more than two proxies to attend and vote
instead of him. A proxy need not be a member of the Company.
Where a member appoints two proxies, he shall specify the
proportion of his shareholdings to be represented by each proxy.

To be valid, the proxy from shall be deposited at the Registered
Office of the Company, George Kent Technology Centre, Lot 1115,
Batu 15 Jalan Dengkil 47100 Puchong, Selangor Darul Ehsan not
less than forty-eight (48) hours before the time appointed for
holding the meeting.

2. In case of a corporation, the Form of Proxy must either be
sealed or signed by a duly authorised officer or attorney.


JUTAJAYA HOLDING: FIC OK's Debt Restructuring Scheme
----------------------------------------------------
Further to the announcement made on 2 June 2003, OSK Securities
Berhad announced, on behalf of the Board of Directors of
Jutajaya Holdings Berhad (JHB), that the Company had, on 3 June
2003, received a letter from the Foreign Investment Committee
(FIC) stating that the FIC had no objection to the Proposed
Corporate and Debt Restructuring Scheme as set out in the
announcement dated 17 January 2003.


KSU HOLDINGS: Postpones Winding Up Hearing on July 1
----------------------------------------------------
KSU Holdings Berhad announced that the hearing for the winding-
up petition, which was fixed on May 27, 2003, has now been
rescheduled to July 1, 2003.

KSU Holdings Berhad was formed as part of a rescue-cum-
restructuring scheme of May Plastics Industries Bhd (the
original listed vehicle). Upon completion of the scheme in April
2002, May Plastics was de-listed from KLSE on 10.5.02, and KSUH
assumed its listing status on the same day.

The KSUH Group's core business is property development, centred
around Taman Kenanga in Sepang, Selangor. Taman Kenanga is
planned as a self-contained mixed development township
comprising 3,960 residential units, 1,982 commercial units, 111
industrial units, commercial complex, primary and secondary
school, private kindergartens, medical centre, hotel, country
club and 22-acre recreational centre. Development of Taman
Kenanga commenced in 1997 and is targeted to be completed in
2005. As at 31.10.2000, 1,613 residential units and 328
commercial units have been sold with a total sales value of
approx. RM259,730,624.


KSU HOLDINGS: EON Bank Sues Firm
--------------------------------
KSU Holdings Berhad (KSUH or the Defendant) announced that it
has received a Writ of Summons in Kuala Lumpur High Court Civil
Suit No. D7-22-788-2003 EON Suit. The Writ of Summons was served
on KSUH on 2 June 2003.

The Plaintiff, EON Bank Berhad EON has claimed for the following
reliefs:

i. Specific performance of the Defendant's undertaking to
execute a Corporate Guarantee in favor of Malaysian
International Merchant Bankers Berhad as Agent for itself and
Malaysian Industrial Development Finance Berhad in consideration
of the Term Loan Facility of RM39,852,000.00 availed by
Malaysian Industrial Development Facility and Malaysian
International Merchant Bankers Berhad to May Plastics Industries
Berhad;

ii. An order that the Defendant do execute and return the
Corporate Guarantee provided to the Defendant under cover of
Messrs. Nik Hussein & Partners, the Plaintiff's solicitors
letter dated 03.09.2002;

iii. Further or alternatively damages for breach of the
Defendant's undertaking in addition or in lieu of specific
performance;

iv. Interest on any sum found due at such rate and for such
period as this Honorable Court shall think fit;

  v. Further or other relief as this Honorable Court think fit;
and

vi. Costs.


In support of its claim, EON has stated in the Statement of
Claim as follows:

1. By an agreement the Agreement made between MIMB as Agent and
Lender and MIDF of the one part and one May Plastics Industries
Berhad MPI of the other part, MIMB and MIDF did on the terms and
conditions of such Agreement agree to grant and avail up to
their respective portions a Term Loan Facility of up to
RM40,000,000.00 the Term Loan" which was eventually availed for
RM39,852,000.00) to MPI to part finance the early redemption of
the RM40,000,000.00 bonds issued by MPI maturing on 03.09.2001
the Bonds and to extinguish the Bank Guarantee issued by MIMB
and MIDF in connection with the Bonds. The Term Loan was to be
fully repaid by MPI on or before 03.09.2001 and MPI was until
such date to pay interest at the applicable rates at the date
stipulated in the Agreement. The Agreement is contained in
and/or evidenced by MIMB's letter of offer dated 14.09.2000 and
the Bond Redemption Facility Agreement dated 20.11.2000 made
between MIMB as Agent and Lender, MIDF and MPI.

2. MPI was as at the date of the above Agreement involved in a
members restructuring scheme proposed the Scheme pursuant to
Section 176 of the Companies Act 1965 between MPI its members
and the Defendant which was intended inter alia to result in MPI
becoming a wholly owned subsidiary of the Defendant and
Defendant's shares being listed and quoted on the Second Board
of the Kuala Lumpur Stock Exchange in place of MPI.

3. Pursuant to the Scheme being approved by MPI's members and
receiving Court sanction, the Scheme as proposed was
successfully implemented. MPI became a wholly owned subsidiary
of the Defendant and on 10.05.2002 the shares of the Defendant
were listed and quoted on the Second Board of the Kuala Lumpur
Exchange in place of MPI.

4. That KSUH, in consideration of MIMB and MIDF agreeing to
grant the term loan to MPI, undertook to execute a Corporate
Guarantee for up to RM 40,000,000.00 in favour of MIMB as Agent
for itself and MIDF to secure the said Facility and that in
breach of such undertaking KSUH has failed and neglected to
execute and/or return the said Corporate Guarantee to MIMB
and/or its solicitors.

The Company has forwarded the Writ to its solicitors.

In the event of the relief's being granted to EON, KSUH will
have to execute the Corporate Guarantee to the extent of RM
40,000,000.00 including damages, interest and costs.


SRI HARTAMAS: Revises Terms of Reconstruction Agreement
-------------------------------------------------------
Sri Hartamas Berhad refer to the announcements dated 30 March
2001, 24 May 2001, 1 October 2001, 2 October 2001, 10 July 2002,
14 January 2003, 20 March 2003, 8 April 2003 and 7 may 2003.

On behalf of FACB, Commerce International Merchant Bankers
Berhad CIMB wishes to announce that FACB had entered into a
supplemental letter with Sri Hartamas Berhad (Special
Administrators Appointed)(SHB) and Hartamas Group Sdn Bhd HGB on
30 May 2003 Supplemental Letter, which serves to amend and
revise the terms of the reconstruction agreement dated 23 May
2001 as supplemented by the first supplemental reconstruction
agreement dated 25 September 2001 and the second supplemental
reconstruction agreement dated 20 March 2003 (collectively
referred to as the "Reconstruction Agreements.

The Supplemental Letter has, amongst others, introduced the
revisions as set out below to the Reconstruction Agreements. For
the purpose herein, unless otherwise stated, the terms used
shall have the same meaning as those defined in the announcement
dated 20 March 2003.

(i) To refine the provisions of the put/call option arrangement
Put/Call Option Arrangement entered into between the Creditors'
Agent and FACB in relation to the Subscription Arrangement,
whereby it has been further provided that in the event FACB
fails to satisfy its obligation pursuant to the exercise of the
Call Option, the Creditors' Agent shall be entitled to
immediately exercise the Put Option, on an accelerated basis, in
relation to the other remaining HGB Shares and HGB Warrants held
by the Creditors' Agent (referred to as the "Creditors' Shares"
and "Creditors' Warrants" respectively), and shall be entitled
to receive the put consideration and the call consideration
amounts plus any late charges thereon (collectively referred to
as the "Outstanding Liability.


VISIONSCAPE SDN: Enters Winding Up Petition
--------------------------------------------
Pursuant to our earlier announcement on 4 December 2002 on the
service of a winding up petition against Visionscape Sdn Bhd
Visionscape by Tri Art Media (M) Sdn Bhd Tri Art, KUB Malaysia
Berhad (KUB) announced that Tri Art served a winding up order on
Visionscape on June 2, 2003.


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


FIRST PHILIPPINE: Repays P1.0B of its Debt
------------------------------------------
First Philippine Holdings Corporation (FPHC) will pay 1.0
billion pesos of debt in 30 days using proceeds from an asset
sale and a loan, the Philippine Daily Inquirer reported, citing
an unidentified official of one of the Company's creditor banks.
The report gave no other details about the purported asset sale.

Earlier, the Company said its offshore subsidiary, FGHC
International Ltd, had signed an agreement with AIMCF (Cayman
Islands) Ltd to issue term notes worth US$35 million.
      

MANILA ELECTRIC: Clarifies 2Q Profit Forecast Report
----------------------------------------------------
Manila Electric Co. refers to the news article entitled "Meralco
sees P200-M profit in 2nd quarter" published in the June 3, 2003
issue of Today. The article reported that: The Manila Electric
Co. (Meralco) said it will post a complete turnaround in the
second quarter from the P300-million net loss it incurred in the
first three months of the year. In a phone interview, Meralco
President Jesus Francisco said the 8.76 centatvos per kilowatt-
hour increase in the unbundled rate of Meralco would probably
turn its profits of about 200 million pesos."

Manila Electric Company (Meralco), in its letter dated June 3,
2003, clarified that:

We wish to clarify the headline as well as the second paragraph
of the said news article published in Today newspaper, which
mentioned a P200 million profit for Meralco. Please be informed
that our President and COO had stated in the said interview that
the rate adjustment will result in additional revenues for
Meralco of approximately P200 million for the month of June
2003. We also wish to clarify that the said rate adjustment
would help the Company in mitigating its net losses incurred in
the first quarter of this year and that a turnaround may be
achieved assuming other favorable conditions such as increased
volume sales occur.


MANILA ELECTRIC: Agrees to Renegotiate IPP Contracts
----------------------------------------------------
Manila Electric Co. will renegotiate its power supply contracts
with independent power producers (IPPs) in an effort to lower
its distribution rate, the Philippine Daily Inquirer reported,
citing Economic Planning Secretary Romulo Neri. Neri met with
Meralco Director Christian Monsod on Monday.

"Meralco said it is ready to renegotiate its contract with its
IPPs, now that it has proper information and documentation to
study the contracts," Neri was quoted as saying. "My concern is
to sustain positive investor sentiment by trying to ensure that
power cost will become more manageable and at par with regional
power rates."


PHILIPPINE LONG: Unit Enters Alliance With ElephantTalk
-------------------------------------------------------
Elephant Talk Communications, Inc. has signed a bilateral
carrier's agreement with PLDT HK Limited, a subsidiary of PLDT
Global.  ElephantTalk estimates this agreement will initially
generate additional annual revenues of approximately $2.5
million.  ElephantTalk is a former majority owned subsidiary of
the Hartcourt Companies, Inc.

PLDT Global is a 100 percent owned subsidiary of the Philippines
largest telecom operator, Philippine Long Distance Telephone
Company (PLDT).  PLDT is the Philippines' principal supplier of
domestic and international telecommunications services with a
wide network of office exchanges in Metro Manila and 188 other
cities and municipalities throughout the Philippines.  
International long distance services are provided via PLDT's two
international gateway-switching exchanges, submarine cables and
satellite systems worldwide.  It also operates Philippines' only
nation-wide digital microwave backbone.  Other services that
PLDT provides include: digital leased lines for domestic and
international communication, high-speed data transmission, high
performance packet switching service, and private networking.  
PLDT Global has offices in U.S.A., U.K., Singapore and Hong
Kong, which is a major Asia Pacific hub.

Mr. Russelle K.P. Choi, President and CEO of ElephantTalk
commented, "We are pleased to enter into this agreement with
PLDT HK Limited linking into one of PLDT Global's major hub
locations.  Interconnecting with PLDT HK Limited further expands
our rapidly growing service area and strengthens our network
availability throughout the region.  ElephantTalk is now in an
even better position to provide more efficient and cost
effective telecommunication services between the Asia Pacific
and Greater China.  This is a major step forward in our business
expansion and we continue to pursue a number of additional
opportunities in this rapidly developing region."

Mr. Anthony Balinger, General Manager of PLDT HK Limited added,
"PLDT Hong Kong Limited is always looking for good partners to
perfect our development plans in the Asian Pacific and Greater
China areas.  Working with ElephantTalk is a definite step
forward.  This cooperation also benefits our carrier customers
with more savings on costs to a wide range of countries and
international areas."

About ElephantTalk

Elephant Talk Communications, Inc. is a leading
telecommunications Company established in 1994.  Located and
operated in Hong Kong with offices in California, Hong Kong and
Singapore, the Company owns switching facilities in China, Hong
Kong, US, and Singapore.  ElephantTalk operates international
long distance, voice, fax, data and VoIP services on both sides
of the Pacific to over 220 foreign destinations through an
advanced and scaleable network.  More information on
ElephantTalk can be found at http://www.elephanttalk.com.

For further information please contact:  Roxana Yung of Elephant
Talk Communications, Inc., (852) 2 707070 3, or fax, (852) 2
707070 7, roxana@elephanttalk.com or info@elephanttalk.com; or
Helen Kim of PLDT, (852) 2842 4522, or fax, (852) 2840 0118,
helenk@pldthk.com.

DebtTraders reports that Philippine Long Distance and Telephone
Co.'s 11.375 percent convertible bond due in 2012 (CSM06SGN1)
trades between 110 and 112.5. For real-time bond pricing, go
to http://www.debttraders.com/price.cfm?dt_sec_ticker=TELP12PHS1


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


HOTEL NEGARA: Unveils Disposal of Property
------------------------------------------
Reference is made to the announcement made by Hotel Negara
Limited on 3 December 2002 where its Board of Directors
announced that the Company was considering the disposal of the
property known as Meritus Negara Singapore situated at 10
Claymore Road, Singapore Property by way of tender sale
Exercise.

The Property is a 21-storey hotel with two basement levels of
carpark lots and 198 guest rooms covering a land area of
approximately 39,328 square feet.

Proposed Sale

Credit Agricole Indosuez Merchant Bank Asia Ltd CAIMBAL, the
independent financial adviser appointed by the Company, has
completed its evaluation of the Exercise and submitted its
report thereon to the Board.

Having considered CAIMBAL's evaluation and its recommendation,
the Board proposes to pursue the sale of the Property by way of
public tender Proposed Sale, subject to (inter alia) the
approval of the shareholders of the Company Shareholders. The
Company has appointed DTZ Debenham Tie Leung to, inter alia,
manage the marketing process for the Proposed Sale.

The Proposed Sale of the Property would constitute the disposal
of the whole or substantially the whole of the Company's
undertaking or property, within the meaning of Section 160 of
the Companies Act, Chapter 50 of Singapore Companies Act.
Further, the Proposed Sale would constitute a Major Transaction
for the purposes of Rule 1013 of the Singapore Exchange
Securities Trading Limited SGX-ST Listing Manual. Accordingly,
the approval of the Shareholders in general meeting is required
for the Proposed Sale. The Company intends to convene an
extraordinary general meeting First EGM for this purpose.

Based on the Company's audited financial statements for the
financial year ended 31 December 2002 FY2002, the net book value
of the Property (and, inter alia, plant and equipment but
excluding operating equipment, certain other equipment and
furniture, fixtures and fittings) as at 31 December 2002 was
approximately S$66,011,395. As stated in such audited financial
statements, based on a "desk-top" valuation update by Knight
Frank Pte Ltd Independent Valuer, the Property (and, inter alia,
plant and equipment but excluding operating equipment, certain
other equipment and furniture, fixtures and fittings) had an
open market value of S$93,000,000 as at 9 December 2002 based on
its existing use as a hotel December Valuation Amount.

The Independent Valuer has further updated its valuation,
ascribing an open market value of S$82,000,000 to the Property
(and, inter alia, plant and equipment but excluding operating
equipment, certain other equipment and furniture, fixtures and
fittings) as at 29 May 2003 based on its existing use as a hotel
May Valuation Amount. This updated valuation takes into
consideration the prevailing market conditions, including the
recent outbreak of Severe Acute Respiratory Syndrome (SARS).

The proforma net tangible assets of the Company as at 31
December 2002, as adjusted for the December Valuation Amount and
the May Valuation Amount *, is as follows:

Based on the audited financial statements for FY2002. Adjusted
for the December Valuation Amount Adjusted for the May Valuation

Amount
Net tangible assets
(S$'000) 49,146 76,135 65,135
Net tangible assets per
share (S$) 2.35 3.65 3.12

* Assuming that the Company's audited financial statements for
FY2002 had been adjusted to take account of the surplus arising
from the revaluation of the Property, based on the December
Valuation Amount and the May Valuation Amount respectively, as
at 31 December 2002.

Proposed Termination of Hotel Management Agreement

In connection with the Proposed Sale, the Company proposes to
terminate the hotel management agreement between the Company and
the hotel operator conditional upon, inter alia, the completion
of the Proposed Sale. The Company is in discussions with the
hotel operator on the proposed termination.

Proposed Voluntary Winding Up and Proposed Delisting

The Company carries on only the business of running the hotel on
the Property. Following the completion of the Proposed Sale, the
Company would hold substantially only cash, cash equivalents and
certain investments in stocks and shares. Pursuant to Rule 1018
of the Listing Manual of the SGX-ST, trading in the Company's
shares may be suspended until it has a business which is able to
satisfy the SGX-ST's requirements for a new listing, and the
Company may be delisted if it is unable to meet this requirement
within 12 months (or such extended period as the SGX-ST may
permit) of the suspension. Please see the section entitled
"Waivers from the SGX-ST" below.

In light of the above and in order to unlock value for the
Shareholders, the Board believes that it is in the best
interests of the Company and the Shareholders for the Company,
subject to completion of the Proposed Sale and approval of the
Shareholders, to be voluntarily wound up pursuant to Section
290(1)(b) of the Companies Act and its net assets distributed to
the Shareholders Proposed Voluntary Winding Up. Subject to
completion of the Proposed Sale, the Company intends to convene
a second extraordinary general meeting Second EGM for this
purpose. On this basis, the Company would ultimately be delisted
from the Official List of the SGX-ST Proposed Delisting.

Waivers from the SGX-ST

(1) Rule 1303(2) of the SGX-ST Listing Manual

Rule 1303(2) of the SGX-ST Listing Manual provides that the SGX-
ST may suspend trading in an issuer's shares where there is a
change in the issuer's assets that produces a situation where
its assets consist wholly or substantially of cash or short-
dated securities, as provided in Rule 1018 of the SGX-ST Listing
Manual.

As noted above, after completion of the Proposed Sale, the
Company would hold substantially only cash, cash equivalents and
certain investments in stocks and shares. The SGX-ST has granted
waiver in respect of Rule 1303(2) to allow trading in the
Company's shares to continue, notwithstanding completion of the
Proposed Sale, up to 10 market days after the Second EGM,
provided that in the event that the Shareholders do not approve
the Proposed Voluntary Winding Up at the Second EGM, the SGX-ST
will suspend trading in the Company's shares immediately after
the Second EGM pursuant to Rule 1018.

(2) Rules 1307(1) and (2) of the SGX-ST Listing Manual

Rule 1307(1) of the SGX-ST Listing Manual provides that an
issuer which is seeking to delist from the SGX-ST should offer a
reasonable exit alternative, which should normally be in cash,
to (a) the issuer's shareholders and (b) holders of any other
classes of listed securities to be delisted.

Rule 1307(2) further provides that an issuer which is seeking to
delist from the SGX-ST should normally appoint an independent
financial adviser to advise on the exit offer.

The SGX-ST has confirmed that the distributions to be made to
Shareholders in the course of the voluntary winding up of the
Company constitute a reasonable exit alternative referred to in
Rule 1307(1), and has also waived the requirement under Rule
1307(2) on the appointment of an independent financial adviser
to advise on the exit offer.

Major Shareholders of the Company

Shareholders should note that the Proposed Sale may or may not
proceed. After the close of the tender, the Board would evaluate
whether or not to accept any bids or offers (if any) for the
Property. In making its decision (including whether or not to
convene the First EGM), the Board will take into consideration,
inter alia, the terms (including as to price) of any bids or
offers made, the advice of CAIMBAL and, as the Proposed Sale
requires the approval of Shareholders, whether the major
Shareholder(s) of the Company will support the same at the First
EGM. If so, the Company intends to secure irrevocable
undertaking(s) from the relevant major Shareholder(s) to vote in
favour of the resolutions at the First and Second EGMs.

As at the date hereof:

(a) United Overseas Bank Limited and its subsidiaries have in
aggregate an interest of 42.66 percent in the Company (for the
avoidance of doubt, this excludes its deemed interests of 18.30
percent, 7.46 percent and 4.34 percent arising via its
associated companies, Overseas Union Enterprise Limited OUE),
Overseas Union Facilities (Pte) Ltd and Overseas Union Insurance
Ltd, respectively);

(b) OUE has direct interest of 18.30 percent in the Company; and

(c) Wah Hin And Company Private Limited Wah Hin has an interest
of 16.68 percent in the Company.

The Company, therefore, intends to solicit the views of one or
more of the above major Shareholders on the Proposed Sale, the
Proposed Voluntary Winding Up and the Proposed Delisting in due
course when deciding whether to proceed with the Proposed Sale.
Shareholders should also not rule out the possibility of a sale
by any one or more of the major Shareholders of their Shares
and/or a general offer for the Shares. As at the date hereof,
the Company has not been notified by the above major
Shareholders of any such sale or that it is aware of any general
offer.


MEDIASTREAM LIMITED: Clarifies Trading Suspension Report
--------------------------------------------------------
In clarification of the Company's announcement dated 3 June
2003, the Directors of the Company clarified that the decision
to suspend trading of the shares of the Company on 3 June 2003
was in response to the substantial increase in the trading
volume of the Company's shares so as to avoid speculation in the
trading of shares.

As announced previously, the Company is always in discussions
with various parties on a range of strategic opportunities and
options which may or may not lead to a definitive agreement and
the Directors are in no position at such preliminary levels to
provide any information in respect of this matter, As such, the
Directors are not aware of any information which has not been
previously announced by the Company, which if known, would
result in the trading activity.


NEPTUNE ORIENT: Posts Notice of Shareholder's Interest
------------------------------------------------------
Neptune Orient Lines Limited (NOL) posted a notice of changes in
substantial shareholder Temasek Holdings (Private) Ltd.'s
interests:
  
Date of notice to Company: 03 Jun 2003
Date of change of deemed interest: 30 May 2003
Name of registered holder: CDP : CREDIT AGRICOLE ASSET
MANAGEMENT SINGAPORE LIMITED
Circumstance(s) giving rise to the interest: Sales in open
market at own discretion

Information relating to shares held in the name of the
registered holder:
No. of shares which are the subject of the transaction:
(210,000)
% of issued share capital: 0.02
Amount of consideration (excluding brokerage and stamp duties)
per share paid or received: S$1.3195
No. of shares held before the transaction: 1
% of issued share capital:  
No. of shares held after the transaction: 2
% of issued share capital:  

Holdings of Substantial Shareholder including direct and deemed
interest
                                           Deemed    Direct
No. of shares held before the transaction: 4,723,304 383,465,362
% of issued share capital:                 0.4       32.58
No. of shares held after the transaction:  4,513,304 383,465,362
% of issued share capital:                 0.38      32.58
Total shares:   

Note: Under "Shares held in the name of registered holder",
Temasek will revert with the figures for 1 & 2 when they are
available.

Based on NOL's paid up capital of 1,176,965,462 as of May 21,
2003.


SEATOWN CORPORATION: Auditor Issues FY02 Financial Statement
------------------------------------------------------------
The Board of Directors of Seatown Corporation Ltd. announced the
auditors' report to members of the Company for the financial
statements for the year ended 30 September 2002 as follows:

Auditors' Report to the Members of Seatown Corporation Ltd

1. We were engaged to audit the accompanying financial
statements of Seatown Corporation Ltd. and the consolidated
financial statements of Seatown Corporation Ltd and its
subsidiaries (the Group) as at 30 September 2002 and for the
year then ended set out on pages 25 to 67, all expressed in
Singapore dollars. These financial statements are the
responsibility of the Company's directors.

2. The financial statements for the previous financial year were
reported on by auditors other than TKH & Company, whose report
dated 29 January 2002 expressed an unqualified opinion on those
financial statements.

3. Except as discussed in the following paragraphs, we conducted
our audit in accordance with Singapore Standards on Auditing.
Those Standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant
estimates made by the directors, as well as evaluating the
overall financial statement presentation.

4. The Group and the Company incurred net losses of
approximately $73,106,000 and $71,957,000 respectively for the
year ended 30 September 2002. As of 30 September 2002, the
Group's and the Company's current liabilities exceeded their
current assets by approximately $90,839,000 and $25,688,000
respectively and the Group was in a net shareholders' deficit
position of approximately $58,067,000. As at 30 September 2002,
the Group's overdrafts exceeded its cash balances by
approximately $7,753,000.

5. As disclosed in Notes 15 and 27 to the consolidated financial
statements, the Company and certain subsidiaries within the
Group have defaulted in payments and breached certain financial
covenants and failed to comply with certain indebtedness
agreements. Consequently, some of the existing credit agreements
of the Group, which contained cross-default clauses have been
breached as a result of these breaches in other indebtedness
agreements. As a result of these breaches in covenants and
defaults in payment, the lenders have the right to recall the
outstanding loans immediately, upon serving a notice of default
to the Company and the borrowing subsidiaries concerned.
Consequently, these loans become repayable upon demand as at 30
September 2002 in accordance with the respective loan
agreements. Accordingly, in the consolidated financial
statements, the long-term portion of this long-term debt has
been reclassified to current liabilities. As at the date of this
report, the Group has received notices of default from various
lenders for repayment of outstanding loans as well as
termination of credit facilities granted to companies in the
Group. The Group is presently negotiating with certain lenders
to the Group for waiver of these breaches and defaults and for
extension of terms of repayment. It is presently not possible to
determine the eventual outcome of these negotiations.

6. On 4 September 2002, due to continued liquidity problems, the
Company applied to the High Court of Singapore, under Section
210 (10) of the Companies Act, for a stay of action against its
creditors to allow the Company to formulate a Scheme of
Arrangement for a meeting of creditors. Prior to the meeting of
creditors, circumstances changed and in the opinion of the
Directors, it was no longer viable for the Company to proceed
with the Scheme of Arrangement, and on 26 February 2003, the
Company was placed under judicial management.

On 13 December 2002, the Company entered into a conditional
investment agreement Investment Agreement with Hui Yuan
Investment Limited Hui Yuan, a Company incorporated in the
British Virgin Islands, in relation to the proposed acquisition
by the Company of all the shares of its wholly-owned subsidiary,
Wise Glory Group Ltd. The proposed acquisition will result in
Hui Yuan holding more than 50 percent of the shareholding of the
Company. The appointed judicial manager will be implementing the
Investment Agreement, which is subject to the following
conditions:

(i) Restructuring of debt structure, capital structure and
group structure of the Group to the reasonable satisfaction of
Hui Yuan;

(ii) Completion of a satisfactory legal and financial due
diligence review; and

(iii) Obtaining the waiver from Securities Industry Council, of
the requirement of Hui Yuan to make a general offer for the
outstanding shares of the Company in connection with the
transactions contemplated by the Investment Agreement.

In order to implement the Investment Agreement, approvals are
required from:

(i) The majority of the shareholders of the Company,
representing not less than three-fourths of its members;

(ii) All consents and approvals required under any and all
applicable laws and regulations for the transactions
contemplated by the Investment Agreement;

(iii) The Singapore Exchange for the listing of the Company's
new shares; and

(iv) The sanction from High Court.

The ability of the Group and the Company to continue as going
concerns is dependent upon the successful implementation of the
Investment Agreement. As at the date of this report, there are
significant uncertainties relating to the successful
implementation of the Investment Agreement.

7. During and subsequent to the financial year ended 30
September 2002, due to continued liquidity problems, the
following principal subsidiaries commenced separate court
proceedings to restrain creditors from taking legal actions
against them and for the purpose of restructuring their debts:

(i) Seatown Construction Pte Ltd SCPL

On 17 May 2002, SCPL obtained from the High Court of Singapore,
under Section 210 of the Companies Act, for an order to convene
a creditors' meeting to consider a Scheme of Arrangement for the
purpose of restructuring its debts. Subsequent to the financial
year ended 30 September 2002, prior to the meeting of creditors,
SCPL decided not to proceed with the Scheme of Arrangement and
on 7 February 2003, SCPL was placed under judicial management
following a petition filed on 15 January 2003 by the Directors.
On 4 April 2003, the Judicial Manager convened a creditors'
meeting, which approved, inter-alia, and the following matters:

a) The sole outstanding construction project of the Company be
completed;

b) All outstanding issues from the Company's previous projects
be resolved and all receivables from these projects be
collected;
  
c) Monies received from (a) and (b) above be used to settle
outstanding debts on such basis as the Judicial Manager may
determine.

(ii) Seatown Foundation Engineering Pte Ltd SFEPL

On 14 June 2002, SFEPL obtained from the High Court of
Singapore, under Section 210 of the Companies Act, for an order
to convene a creditors' meeting to consider a Scheme of
Arrangement for the purpose of restructuring its debts. Pursuant
to the creditors' meeting held on 3 April 2003, the creditors of
SFEPL rejected the proposed scheme of arrangement. On 10 April
2003, the directors of SFEPL filed a petition to the High Court
of Singapore for an order to be placed under judicial
management. As at the date of this report, the High Court has
yet to convene to hear the petition. Upon approval by the High
Court for SFEPL to be placed under judicial management, the
appointed Judicial Manager will be proposing a new scheme to
restructure all outstanding debts of SFEPL on such terms as may
be agreed between the Judicial Manager and the creditors.
(iii) Tri-Mix Pte Ltd TMPL

On 3 April 2003, TMPL applied to the High Court of Singapore,
under Section 210 of the Companies Act, for an order to convene
a creditors' meeting to consider a Scheme of Arrangement for the
purpose of restructuring its debts. As at the date of this
report, the High Court has yet to convene to hear the
application.

Based on records filed by the creditors of SCPL and SFEPL under
the above court proceedings, there are unrecorded outstanding
claims from various subcontractors and creditors which the Group
is disputing as being inflated or without basis. As at the date
of this report, we are unable to determine the total amount of
outstanding claims against the Group by these subcontractors and
creditors since the Group is still consolidating these claims.
In addition, we do not consider the information made available
to us sufficient to enable us to form an opinion as to whether
these claims are valid and should be accrued for and
accordingly, we are unable to determine the actual amount of
liabilities owing to these various subcontractors and creditors
as at 30 September 2002. Consequently, we are unable to
determine the financial effects, including contingent
liabilities, of these unrecorded outstanding claims on
construction work-in-progress, inventories, cost of sales and
foreseeable losses in the accompanying financial statements. In
addition, the ability of the above companies and the Group to
continue as going concerns is dependent on the successful
outcome of SCPL and SFEPL under judicial management and the
successful implementation of the proposed scheme of arrangement
by TMPL.

8. During the financial year, as a result of delay in a
development project of a subsidiary, Seatown Development (Tuas)
Pte Ltd, as well as default in payments and breaches in certain
financial covenants of existing credit agreement by this
subsidiary with a financial institution (the "lender, the lender
has withdrawn its entire banking facility amounting to
$27,628,000 granted to the subsidiary for financing the
construction cost of the entire project. As at 30 September
2002, $10,712,840 has been drawn-down by the subsidiary under
the banking facility to finance development costs of the
project. As a result of the withdrawal of banking facility by
this lender, the development progress of this project slowed
down significantly due to lack of funds. The Directors are
presently negotiating with the lender for waiver of these
breaches and defaults and for reinstatement of the banking
facility. The ability of the subsidiary to continue as a going
concern is dependent upon the successful reinstatement of this
banking facility by the lender. It is presently not possible to
determine: (a) the eventual outcome of the Directors'
negotiation with the lender; (b) the amount of liquidated
damages and foreseeable losses to be provided in the financial
statements as a result of further delays due to lack of funds
and (c) the adjustments required to be made in the consolidated
financial statements should the Directors decide to cease or
novate the development of the project to third parties.

9. For the financial year ended 30 September 2002, included in
the consolidated financial statements are construction revenues
and costs amounting to $13,299,000 and $12,652,000 respectively
derived from certain construction piling projects of the Group.
As at 30 September 2002, progress billings rendered by the Group
in relation to these projects amounted to $3,097,347.
Recognition of these construction revenues and costs as well as
progress billings rendered by the Group were based on estimation
made by management on the stage of completion of these projects
as at 30 September 2002. However, we were unable to obtain
sufficient evidence to evaluate the basis of estimation made by
management. Accordingly, we are unable to form an opinion on
whether these construction revenues and costs as well as
progress billings are properly stated in the consolidated
financial statements.

10. As at the date of this report, we were unable to obtain
independent confirmations from various financial institutions
concerning outstanding cash balances, overdrafts, short-term
loans and hire purchase liabilities of the Group and the Company
amounting in aggregate to $6,788,759 and $100,909 respectively
as at 30 September 2002. As a result, we were unable to obtain
sufficient appropriate independent evidence to determine the
validity and completeness of balances with and liabilities,
including contingent liabilities, owing to these financial
institutions. Accordingly, we are unable to form an opinion on
whether these outstanding cash balances, overdrafts, short term
loans, hire purchase and contingent liabilities are properly
stated and disclosed in the accompanying financial statements
and the consolidated financial statements.
11. At the date of this report, we were unable to obtain
independent confirmations from certain trade creditors, other
creditors, loans from certain directors of a subsidiary and
amount due from an outside party of the Group and the Company
amounting in aggregate to $4,297,563 and $3,147,816 respectively
as at 30 September 2002. We do not consider information and
records made available to us from alternative procedures
sufficient for us to form an opinion on whether these balances
as at 30 September 2002 are properly stated in the accompanying
financial statements and the consolidated financial statements.

12. At the date of this report, we were unable to obtain
independent confirmations from certain directors of the
subsidiaries for the amounts of emoluments, which they have
received or are receivable by them for the financial year. We do
not consider information and records made available to us from
alternative procedures sufficient for us to form an opinion on
whether the amounts of directors' remuneration for the year
ended 30 September 2002 are properly stated in the accompanying
financial statements and the consolidated financial statements.
13. The ability of the Company and the Group to continue as
going concerns and meet their financial obligations as and when
they fall due is dependent on several factors which include:

(i) The Group not incurring significant losses in the future
and being able to secure additional new profitable contracts;

(ii) The successful implementation of the Investment Agreement
with Hui Yuan Investment Limited by the appointed judicial
manager of the Company as mentioned in paragraph (6) above.

(iii) The successful outcome of SCPL and SFEPL under judicial
management and the successful implementation of the proposed
scheme of arrangement by TMPL as mentioned in paragraph (7)
above;

(iv) The successful reinstatement of banking facility by a
financial institution to provide financing to enable completion
of a subsidiary's development project as mentioned in paragraph
(8) above;

(v) The successful outcome of negotiations between the
Directors and lenders to the Group concerning the preservation
of existing banking facilities available to the Group including
those where covenants have been breached not being withdrawn or
materially reduced by the banks and the indemnities provided by
the Company to third parties such as financial institutions in
respect of performance bonds and guarantees issued by such third
parties on account of its subsidiaries not being called upon by
such third parties;

The matters set out in the preceding paragraphs may affect the
going concern assumption on which the accompanying financial
statements and the consolidated financial statements have been
prepared. The use of the going concern assumption depends upon
the successful conclusion of the above-mentioned matters.
Therefore, we are not able to form an opinion as to whether the
going concern basis of presentation of the accompanying
financial statements and the consolidated financial statements
is appropriate. The accompanying financial statements and the
consolidated financial statements do not include any adjustments
relating to the recoverability and classification of asset
amounts or to amounts and classification of liabilities that may
be necessary if the Company and the Group are unable to continue
as going concerns. If the Company and the Group are unable to
continue as going concerns for the foreseeable future,
adjustments may have to be made to reflect the situation that
assets may need to be realized other than in the amounts at
which they are recorded in the accompanying balance sheets. In
addition, the Company and the Group may have to provide for
further liabilities that might arise, and to reclassify fixed
assets and long-term liabilities as current assets and current
liabilities respectively.

14. The auditors' report on the financial statements of the
following subsidiaries of which we are the auditors contain a
disclaimer of opinion and included comments made under Section
207(3) of the Act as describe below. We did not express an
opinion on the financial statements of the following
subsidiaries as at 30 September 2002 and for the financial year
then ended because:

(i) Seatown Construction Pte Ltd SCPL

a) SCPL was in a net shareholders' deficit position;

b) SCPL has defaulted payments, breached certain financial
covenants and failed to comply with certain indebtedness
agreements;

c) SCPL was placed under judicial management;

d) SCPL was unable to ascertain whether claims by various
subcontractors should be accrued for; and

e) We were unable to obtain independent confirmation from
certain financial institutions concerning outstanding cash
balances, bank overdrafts, bank loans and hire purchase
liabilities.

(ii) Seatown Foundation Engineering Pte Ltd SFEPL

a) SFEPL was in a net shareholders' deficit position;

b) SFEPL has defaulted payments, breached certain financial
covenants and failed to comply with certain indebtedness
agreements;

c) SFEPL filed a petition to the High Court of Singapore for an
order to be placed under judicial management;

d) SFEPL was unable to ascertain whether claims by various
subcontractors should be accrued for;

e) We are unable to obtain independent confirmation from
certain financial institutions concerning outstanding bank
overdrafts, bank loans and hire purchase liabilities;

f) We were unable to obtain independent confirmations from
certain trade creditors or obtain sufficient and appropriate
evidence from alternative procedures to enable us to form an
opinion on whether the trade creditors balances are properly
stated as at 30 September 2002;

g) We were unable to obtain sufficient evidence to evaluate the
basis of estimation by management on the stage of completion of
certain piling projects; and

h) we were unable to obtain independent confirmations from a
director or obtain sufficient and appropriate evidence from
alternative procedures to enable us to form an opinion on
whether the amount of emolument received or is receivable by him
is properly stated as at and for the financial year ended 30
September 2002.

(iii) Fermold Pte Ltd FPL


a) FPL was in a net shareholders' deficit position;

b) FPL has defaulted payments, breached certain financial
covenants and failed to comply with certain indebtedness
agreements; and

c) We were unable to obtain independent confirmation from
certain financial institutions concerning outstanding bank
overdrafts, bank loans and hire purchase liabilities; and

(iii) Fermold Pte Ltd FPL (continued)


d) We were unable to obtain independent confirmations from
certain trade creditors or obtain sufficient and appropriate
evidence from alternative procedures to enable us to form an
opinion on whether the trade creditors balances are properly
stated as at 30 September 2002.

(iv) Tri-Mix Pte Ltd TMPL


a) TMPL was in a net shareholders' deficit position;

b) TMPL has defaulted payments, breached certain financial
covenants and failed to comply with certain indebtedness
agreements;

c) TMPL has applied to the High Court of Singapore under
Section 210 of the Companies Act for an order to convene a
creditors' meeting to consider a Scheme of Arrangement for the
purpose of restructuring its debts; and

d) we were unable to obtain independent confirmation from
certain financial institutions concerning hire purchase
liabilities.

(v) Seatown Development (Tuas) Pte Ltd SDTPL


a) SDTPL was in a net shareholders' deficit position;

b) SDTPL has defaulted payments, breached certain financial
covenants and failed to comply with certain indebtedness
agreements; and

c) SDTPL's principal lender has withdrawn its entire banking
facility granted to them for the development of SDTPL's sole
development project resulting in a significant slowdown in the
development of this project.

(vi) Cheng Engineering & Equipment Pte Ltd CEEPL


a) CEEPL was in net shareholders' deficit position;

b) We were unable to obtain independent confirmations from
certain trade creditors or obtain sufficient and appropriate
eviance from alternative procedures to enable us to form an
opinion on whether the trade creditors balances are properly
stated as at 30 September 2002; and

c) We are unable to obtain independent confirmations from
certain directors concerning loans owing to them and amounts of
emoluments received or are receivable by them or obtain
sufficient and appropriate evidence from alternative procedures
to enable us to form an opinion on whether these amounts are
properly stated as at and for the financial year ended 30
September 2002.

(vii) PacCan Construction Specialists Pte Ltd PCS


a) PCS was in net shareholders' deficit position; and

b) We were unable to obtain independent confirmations from
certain creditors or obtain sufficient and appropriate evidence
from alternative procedures to enable us to form an opinion on
whether other creditors balances are properly stated as at 30
September 2002.

(viii) Pacific Can Manufacturing Pte Ltd PCM
Pacific Can Building Pte Ltd
PacCan Landscape Pte Ltd
Pacific Best Pte Ltd

a) These companies were in net shareholders' deficit positions
and accordingly, are dependent on the Company for financial
support. There are significant uncertainties as to whether the
Company is able to provide such financial support and assistance
to these subsidiaries to enable them to continue to operate as
going concerns.

15. We did not audit the financial statements of the following
subsidiaries, all incorporated in Malaysia, of which we have not
acted as auditors:

(i) Pacific Can (Malaysia) Sdn Bhd;

(ii) Capital I Sdn Bhd; and

(iii) Seatown-Pyramid Sdn Bhd

As disclosed in Note 10 to the consolidated financial
statements, the financial statements of these subsidiaries were
audited by other auditors whose auditors' reports for the
financial year ended 30 September 2002 were withheld and have
not been made available to us as at the date of this report.
Accordingly, the consolidated financial statements of the Group
are made out and issued prior to the issuance of the above
subsidiaries' audited accounts.

For the purpose of preparation of the consolidated financial
statements of the Group as at and for the financial year ended
30 September 2002, un-audited management accounts of these
subsidiaries were used. We did not perform any work on the un-
audited management accounts of these subsidiaries as the
directors are of the opinion that it is not practical nor
beneficial to extend the scope of the audit. Accordingly, we are
unable to and we do not express an opinion on the consolidated
financial statements.

16. Because of the significance of the matters referred to in
the preceding paragraphs, we are not in a position to, and do
not, express an opinion on whether the accompanying financial
statements and consolidated financial statements are properly
drawn up in accordance with the provisions of the Singapore
Companies Act and Singapore Statements of Accounting Standard
and so as to give a true and fair view of:


(i) The state of affairs of the Company and of the Group as at
30 September 2002 and of the results, changes in equity of the
Company and of the Group, and cash flows of the Group for the
financial year then ended; and

(ii) The other matters required by Section 201 of the Act to be
dealt with in the financial statements of the Company;

17. In our opinion, except for the matters referred to in the
preceding paragraphs, the accounting and other records and
registers required by the Act to be kept by the Company and
those subsidiaries incorporated in Singapore, of which we are
the auditors have been properly kept in accordance with the
provisions of the Act.

18. Because of the significance of the matters discussed in the
preceding paragraphs, we are unable to satisfy ourselves that
the financial statements of the subsidiaries which have been
consolidated with the financial statements of the Company are in
the form and content appropriate and proper for the purposes of
the preparation of the consolidated financial statements as
defined in Section 209A of the Act.

TKH & Company
Certified Public Accountants
Singapore
22 April 2003


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T H A I L A N D
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BANGCHAK PETROLEUM: Government Agrees to Guarantee THB3.6B Loan
---------------------------------------------------------------
Local state-run commercial banks Krung Thai Bank Plc and
Government Savings Bank are expected to grant Bangchak Petroleum
Plc a THB3.6 billion- loan to cover the three-year debentures
maturing next Saturday.

This, after the cabinet approved Tuesday the proposal by Energy
Minister Prommin Lertsuridej to guarantee the loan, a
prerequisite sought by the banks, Business Day said.  

Despite the willingness of the two banks to bankroll the
redemption, government Spokesman Sita Divari said the company
should consider other lenders who could provide cheaper loans.



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