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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

            Monday, August 25 2003, Vol. 6, No. 167

                         Headlines

A U S T R A L I A

ARISTOCRAT LEISURE: Welcomes Penny Morris to Board
ATLANTIC 3: Supreme Court Orders Schemes Winding Up
CALTEX AUST: JV With Woolworths Strengthens Business, Says S&P   
PAN PHARMACEUTICALS: Investor, Director Propose Amended DOCA
VILLAGE ROADSHOW: Moody's Revises Rating Outlook to Developing


C H I N A   &   H O N G  K O N G

CHINA SCI-TECH: September 25 AGM Scheduled
EVERGAIN GLOBAL: Petition to Wind Up Pending
GUANGDONG INVESTMENT: Proposes Capital Reduction
HUDSON HOLDINGS: Deputy Chairman Chi Kwong Resigns
LAI FUNG: Shareholders OK Articles of Association Amendment

LINK CHEER: Winding Up Petition Set for Hearing
SKYLIGHT INTERNATIONAL: Petition to Wind Up Scheduled
SHUN XING: Winding Up Petition Hearing Set
VICTORY GROUP: Undertakes Placing Shares to Repay Debt


I N D O N E S I A

MERPATI NUSANTARA: Emitting Rp300B Bonds to Pay Debt

* IBRA Earns Rp751B From PPAP3


J A P A N

DAIEI INC.: Court Orders Y1.38B Debt Payment
FUJITSU LIMITED: S&P Cuts Rating to 'BB+pi' on Slow Recovery
HANKYU CORPORATION: JCR Assigns BBB+ Rating to Bonds
KINKI NIPPON: JCR Affirms BBB+ Rating
KYUSHU INDUSTRIAL: IRCJ Bails Out Bus Firm

NIPPON STEEL: Fitch Affirms Ratings at 'BB+'; Outlook Stable
NIPPON TELEGRAPH: Denies IIJ Takeover Report
NIPPON TELEGRAPH: Develops Diamond Semiconductor Devices


K O R E A

DAEWOO MOTOR: GM & Bupyeong Plant Votes to Strike
HANARO TELECOM: Shares Up 7.04% on Major Support
HYNIX SEMICONDUCTOR: Plans to Sell Non-Memory Units
HYUNDAI GROUP: Kumgang Aims to Rearrange Group Structure
SK GLOBAL AMERICA: Turning to KPMG LLC for Financial Advice

SK SHIPPING: SFC Files Accounting Fraud Against Chairman


M A L A Y S I A

ARUS MURNI: SPA Agreement Fulfilled
GOLDEN FRONTIER: Winds-Up Inactive Subsidiary Companies
HOTLINE FURNITURE: Unit Disposes Property for RM9M
KAI PENG: Replies KLSE's Proposed Disposal Query
MECHMAR CORPORATION: Provides Defaulted Loan Status Update

MECHMAR CORPORATION: Unit Sale Proceeds Used to Settle Loan
METROPLEX BERHAD: Court Grants Restraining Order Time Extension
METROPLEX BERHAD: Land Disposal Completed  
OILCORP BERHAD: Ng Tian Completing RM5M Shares Purchase
PAN PACIFIC: Appoints Tan Wing Sum as Director

PSC INDUSTRIES: Proposals Completion Date Extended for a Year
RENONG BERHAD: Disposes of Assets to Redeem SPV Bond  
SETEGAP BERHAD: Restructures RM9M Credit Facilities
SURIA CAPITAL: RA Time Extension Request Approval Pending
TAT SANG: Court Orders MMWF Winding Up


P H I L I P P I N E S

MANILA ELECTRIC: Plans New Borrowings to Pay Off Debts
UNIWIDE HOLDINGS: Swings to P140.75M Profit in First Half


S I N G A P O R E

JADE PALACE: Releases Winding Up Order Notice
KOO HENG: Issues Notice of Winding Up Order
NEPTUNE ORIENT: Posts US$68.5M Profit in Turnaround
SINCEM HOLDINGS: Issues Debt Claim Notice to Creditors
VERTEX CHINA: Goes Into Voluntary Liquidation


T H A I L A N D

ASIA HOTEL: SET Suspends Securities Trading
CHRISTIANI & NIELSEN: Posts Debt Restructuring Plan Progress
DATAMAT PUBLIC: Clarifies Investors' Misunderstanding   
MDX PUBLIC: Clarifies Q203 Financial Statement
PAE (Thailand): Incurs Bt36.56M Q203 Net Loss

UNION MOSAIC: Posts Convertible Debentures Details
UNION MOSAIC: Releases BOD Meeting No. 1/2546 Resolutions

     -  -  -  -  -  -  -  -

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A U S T R A L I A
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ARISTOCRAT LEISURE: Welcomes Penny Morris to Board
--------------------------------------------------
Aristocrat Leisure Limited announces that Ms Penny Morris AM has
accepted an invitation to join the Board of the Company as
a non-executive director, subject to normal regulatory approval.

Ms Morris' qualifications include Bachelor of Architecture
(Honors), Master of Environmental Science and Diploma of Company
Directorship. She is a Fellow of both the Royal Australian
Institute of Architects and the Australian Institute of Company
Directors.

Ms Morris is a professional company director. She has previously
held a number of senior management positions in the property and
construction industry, in both the private and public sectors.
Highlights of her executive career include roles as the Director
of Australian and Overseas Property for the Commonwealth
Government, and Group Executive, Lend Lease Property Services.
She is currently a non-executive director of Country Road
Limited, Landcom, Sydney Harbour Foreshore Authority and
Jupiters Limited. She will resign as a director of Jupiters on
completion of its merger with Tabcorp Holdings Limited later
this year.

In the past Ms Morris has been a non-executive director of
Australia Post, Colonial State Bank, Howard Smith Limited,
Energy Australia and the Indigenous Land Corporation.
Ms Morris was appointed as a Member of the Order of Australia in
the 2002 Queens Birthday Honours.

Over the last ten years, Ms Morris has been extensively involved
in corporate governance education, most notably through her
assistance with the development and delivery of governance
education programs for the Australian Institute of Company
Directors.

The Deputy Chairman, Mr John Pascoe, said "Penny Morris will
bring to the Board a number of valuable attributes. She has a
broad executive background, and over a decade of experience on
listed company boards. In addition, having been a director of
Jupiters for the past seven years, she has a sound knowledge
and understanding of the gaming industry. Penny is noted for her
commitment to improving the standards of corporate governance
and she will bring new perspectives to the Board's
deliberations. The Board is delighted that she has chosen to
join the company."

Mr John Ducker has advised that he will stand down as Chairman
at the next monthly Board meeting, to be held on 15 September,
2003, but will remain on the Board. Mr John Pascoe will assume
the duties of the Chair.


ATLANTIC 3: Supreme Court Orders Schemes Winding Up
---------------------------------------------------
Following an application by the Australian Securities and
Investments Commission (ASIC), the Supreme Court of Queensland
has made orders determining the parties to wind up the managed
investment schemes operated by Atlantic 3 Financial Pty Ltd
(Atlantic 3).

Mr Greg Moloney and Mr Peter Geroff of Ferrier Hodgson, have
been appointed as liquidators to wind up five of the schemes,
including:

   1. Mackay Leagues Club Pty Ltd (a vacant parcel of land and
building previously tenanted and utilized by the defunct Mackay
Leagues Club Pty Ltd);

   2. Numinko Pty Ltd (a student lodge operating in Toowoomba);

   3. Sentry Alliance Pty Ltd (18 strata-titled storage units in
Campbellfield Victoria);

   4. Plymouth Greens Pty Ltd, Atlantic 3 Maryborough Mortgage
Pty Ltd Advance (originally a proposed Lawn Bowls resort at
Eumundi on the Sunshine Coast and later transferred to
commercial buildings in Maryborough); and

   5. Clearview Properties Pty Ltd (proposed land subdivision
and development in Montville/Maleny on the Sunshine Coast
hinterland).

These schemes represent the larger proportion by dollar value of
all the schemes operated by Atlantic 3.

The Court ordered that Atlantic 3 wind up a further ten schemes
under the supervision of Messrs Moloney and Geroff. These orders
follow an order in July 2003 that Messrs Geroff and Moloney be
appointed interim receivers over the schemes until a
determination was made as to who should undertake the winding
up.

At that time, Atlantic 3 and its current directors, Dr Fredrick
Acker and Ms Gerilyn Polanski, conceded the schemes were
unregistered managed investment schemes under the Corporations
Act, and made an application to the Court have the schemes wound
up by Atlantic 3.

Background

ASIC alleges that since 1998, Atlantic 3 has operated and
continued to operate a number of allegedly unregistered managed
investment schemes (in the nature of mortgages) without holding
the necessary licenses, in contravention of the Corporations Law
and Corporations Act.

ASIC first commenced action in relation to Atlantic 3 in May
2003. At that time, the Supreme Court of Queensland accepted
interlocutory undertakings from Atlantic 3 and its current
directors, Dr Fredrick Acker and Ms Gerilyn Polanski. Messrs
Greg Moloney and Peter Geroff of Ferrier Hodgson (QLD) were
appointed as Investigative Accountants over the allegedly
unregistered managed investment schemes, and were required to
prepare a report, which was prepared and filed with the Court on
24 June 2003.

Atlantic 3 and its directors also provided a number of
undertakings to the court in relation to the operation and
management of the managed investment schemes.

In July 2003, ASIC obtained orders in the Supreme Court of
Queensland, Brisbane, for the appointment of Messrs Moloney and
Geroff as interim receivers to the property of various managed
investment schemes operated by Atlantic 3, until the Court
determined who should conduct the winding up.


CALTEX AUST: JV With Woolworths Strengthens Business, Says S&P   
--------------------------------------------------------------
Standard & Poor's Ratings Services said Friday that the proposed
petrol station joint venture between Caltex Australia Ltd. and
Woolworths Ltd. is expected to enhance the competitive position
of both companies in the increasingly competitive petroleum-
retailing environment.

Furthermore, the proposal is not expected to create any material
additional business or financial risks that do not already exist
at either company and, as such, will not impact their ratings or
stable outlooks.

Importantly, the partnership provides WOW with significantly
improved coverage of its petrol retailing offer and reliable
access to quality fuel, and provides a timely competitive
response to the recently announced Coles Myer/Shell petrol
retailing alliance. The partnership is considered important in
protecting WOW's supermarket market position, particularly
its key New South Wales market. For Caltex, the transaction
provides increased fuel volumes and access to an efficient
grocery supply chain in an increasingly competitive operating
environment. Although both companies expect the venture to be
earnings enhancing, Standard & Poor's notes that the action is
indicative of the intense competition for retail spending at
both supermarket and petrol station networks.

On March 4, the Troubled Company Reporter - Asia Pacific
reported that Standard & Poor's Ratings Services affirmed its
'BBB' long-term corporate credit rating on Caltex Australia Ltd.
At the same time, Standard & Poor's raised its short-term
corporate credit rating on the company to 'A-2' from 'A-3', and
revised the outlook to stable from negative.
  

PAN PHARMACEUTICALS: Investor, Director Propose Amended DOCA
------------------------------------------------------------
Mr Fred Bart and Mr Jim Selim have proposed an amended Deed of
Company Arrangement (DOCA) for Pan Pharmaceuticals Limited.

The Deed is one of the options available to creditors when they
decide the future of Pan Pharmaceuticals Limited at the second
meeting of creditors to be held on 1 September 2003.

Full details of the amended Deed can be viewed at
http://bankrupt.com/misc/TCRAP_PPH0825.pdf.

CONTACT INFORMATION: KPMG Corporate Recovery  
        Phone - 61-2-93357000  
        Email - info@panpharma.com.au
        Web - www.corporaterecovery.kpmg.com.au


VILLAGE ROADSHOW: Moody's Revises Rating Outlook to Developing
--------------------------------------------------------------  
Moody's Investors Service has revised the rating outlook for
Village Roadshow Ltd (VRL)'s Ba3 issuer rating and B2 sub-debt
rating to developing from stable. The developing outlook is
contingent upon the outcome of VRL's proposal to repurchase its
non-redeemable non-cumulative preference shares, representing a
principal and interest outlay over 3 years of A$352 million.

This proposal is subject to approval by ordinary shareholders
and preference shareholders in November 2003. Approval to
repurchase the preference share could have a negative impact on
VRL's financial profile given additional demands on cash unless
offset by greater certainty surrounding prospective cash flows
to VRL from film production including the Matrix series.

Moody's says that the proposed buyback value of approximately
A$300 million for the preference shares is higher than the
reported value of A$213 million as of FYE30/6/02. The buyback
also converts the perpetual nature of the preference shares into
3-year debt repayment obligations. VRL's management expects that
total cash requirement of A$352 million (P+I) will mainly be
funded by projected operating cash flow and cash on hand.

Moody's however notes that a significant portion of the
projected cash flow will be generated from the film production
business, which, in Moody's opinion, is less predictable and
remains uncertain at this stage. By the time, however, of any
approval to buy back preference share Moody's expects to have
greater certainty about such film cash flows.

The current Ba3 issuer rating continues to reflect VRL's
relatively high lease-adjusted leverage and its increasingly
reliant on film production and cinema exhibition businesses,
which have less predictable operating cash flow when compared to
the radio division under the listed subsidiary, Austereo. In
addition, VRL has further contingent liabilities arising from a
US$30.5 million non-judicial arbitration award issued against
its US subsidiary (which has remained dormant), A$85.1 million
and A$110 million alternative assessments issued by Australian
Tax Office, and guarantee provided to the debts of associated
companies.

At the same time, the rating reflects VRL's diversified sources
of revenue and cash flow, and its ownership in the relatively
strong radio business. Moody's however notices that Austereo's
operating performance has been under pressure due to increased
competition. Moody's also recognizes management's efforts to
restructure its exhibition division by exiting certain overseas
markets and re-deploy cash raised from assets sale to the
territories where it has competitive position, such as
Australia. Moody's also anticipates that next 12-18 months is
likely to see stronger results out of the film production
business.


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C H I N A   &   H O N G  K O N G
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CHINA SCI-TECH: September 25 AGM Scheduled
------------------------------------------
Notice is hereby given that an annual general meeting of China
Sci-Tech Holdings Limited will be held at Plaza I-III, Lower
Lobby, Novotel Century Hong Kong, 238 Jaffe Road, Wanchai, Hong
Kong on Thursday, 25 September 2003 at 2:30 p.m. for the
following purposes:

1. To receive and adopt the audited Financial Statements and the
Reports of the Directors and of the Auditors for the year ended
31 March 2003;

2. To re-elect the retiring directors and to authorize the board
of directors to fix directors' remuneration;

3. To re-appoint auditors and to authorize the board of
directors to fix auditors' remuneration;

4. To consider as Special Business and, if thought fit, pass
with or without amendments, the following resolution as an
Ordinary Resolution:

"THAT:

   4.1 subject to paragraph 4.3 below and pursuant to the Rules
Governing the Listing of Securities on The Stock Exchange of
Hong Kong Limited (Listing Rules), the exercise by the
directors of the Company during the Relevant Period (as
hereinafter defined) of all the powers of the Company to allot,
issue and deal with additional shares of HK$0.01 each in the
capital of the Company and to make or grant offers, agreements
and options (including bonds, warrants, debentures and other
securities which carry rights to subscribe for or are
convertible into shares of the Company) which would or might
require the exercise of such power be and is hereby generally
and unconditionally approved;

   4.2 the approval in paragraph 4.1 above shall authorize the
directors of the Company during the Relevant Period (as
hereinafter defined) to make or grant offers, agreements and
options (including bonds, warrants, debentures and other
securities which carry rights to subscribe for or are
convertible into shares of the Company) which would or might
require the exercise of such power after the end of
the Relevant Period;

   4.3 the aggregate nominal amount of share capital allotted or
agreed conditionally or unconditionally to be allotted (whether
pursuant to an option or otherwise) and issued by the directors
of the Company pursuant to the approval in paragraph 4.1 above,
otherwise than

     (i) a Rights Issue (as hereinafter defined), or
     (ii) the exercise of rights of subscription or conversion
under the terms of any existing warrants, bonds, debentures,
notes or other securities issued by the Company which carry
rights to subscribe for or are convertible into shares of the
Company, or
     (iii) an issue of shares under any option scheme or similar
arrangement for the time being adopted for the grant or issue to
employees of the Company and/or any of its subsidiaries or any
other eligible person(s) of shares or rights to acquire shares
of the Company, or
     (iv) an issue of shares as scrip dividends pursuant to the
articles of association of the Company from time to time shall
not exceed 20% of the aggregate nominal amount of the issued
share capital of the Company as at the date of passing this
Resolution, and the approval shall be limited accordingly; and

   4.4 for the purpose of this Resolution, "Relevant Period"
means the period from the passing of this Resolution until
whichever is the earliest of:

     (a) the conclusion of the next annual general meeting of
the Company;

     (b) the expiration of the period within which the next
annual general meeting of the Company is required by the
articles of association of the Company or any applicable law to
be held; or

     (c) the date on which the authority set out in this
Resolution is revoked or varied by an ordinary resolution of the
shareholders in general meeting of the Company; and "Rights
Issue" means an offer of shares of the Company open for
a period fixed by the directors of the Company to the holders of
shares of the Company (and, where appropriate, to holders of
other securities of the Company entitled to the offer) on the
register on a fixed record date in proportion to their then
holdings of such shares (or, where appropriate such other
securities) as at that date (subject to such exclusions or other
arrangements as the directors of the Company may deem necessary
or expedient in relation to fractional entitlements or having
regard to any restrictions or obligations under the laws of, or
the requirements of any recognized regulatory body or any stock
exchange in, any territory outside Hong Kong applicable to the
Company)."

5. To consider as Special Business and, if thought fit, pass
with or without amendments, the following resolution as an
Ordinary Resolution:

"THAT:

   5.1 subject to paragraph 5.2 below, the exercise by the
directors of the Company during the Relevant Period (as
hereinafter defined) of all the powers of the Company to
repurchase shares of HK$0.01 each in the capital of the Company
on The Stock Exchange of Hong Kong Limited (the Stock Exchange)
or on any other stock exchange on which the securities of the
Company may be listed and recognized by the Securities and
Futures Commission of Hong Kong and the Stock Exchange for this
purpose, subject to and in accordance with all applicable laws
and the requirements of the Listing Rules or of any other stock
exchange as amended from time to time, be and is hereby
generally and unconditionally approved;

   5.2 the aggregate nominal amount of shares of the Company
which the directors of the Company is authorized to repurchase
pursuant to the approval in paragraph 5.1 above shall not exceed
10% of the aggregate nominal amount of the issued share capital
of the Company as at the date of passing this Resolution, and
the approval shall be limited accordingly;

   5.3 for the purposes of this Resolution, "Relevant Period"
means the period from the passing of this Resolution until
whichever is the earliest of:

     (a) the conclusion of the next annual general meeting of
the Company;

     (b) the expiration of the period within which the next
annual general meeting of the Company is required by the
articles of association of the Company or any applicable law to
be held; or

     (c) the date on which the authority set out in this
Resolution is revoked or varied by an ordinary resolution of the
shareholders in general meeting of the Company."

6. To consider as Special business and, if thought fit, pass
with or without amendments, the following resolution as an
Ordinary Resolution:

"THAT subject to the passing of Resolutions No. 4 and No. 5 set
out in this notice convening this meeting, the general mandate
granted to the directors of the Company to allot, issue and deal
with additional shares pursuant to Resolution No. 4 set out in
the notice convening this meeting be and is hereby extended by
the addition thereto of an amount representing the aggregate
nominal amount of shares in the capital of the Company
repurchased by the Company under the authority granted pursuant
to Resolution No. 5 set out in the notice convening this
meeting, provided that such amount of shares so repurchased
shall not exceed 10% of the aggregate nominal amount of the
issued share capital of the Company as at the date of passing
the Resolution."


EVERGAIN GLOBAL: Petition to Wind Up Pending
--------------------------------------------
The petition to wind up Evergain Global Enterprise Limited is
set for hearing before the High Court of Hong Kong on September
3, 2003 at 9:30 in the morning.

The petition was filed with the court on July 16, 2003 by Bank
of China (Hong Kong) Limited of 14th Floor, Bank of China Tower,
No. 1 Garden Road, Central, Hong Kong.


GUANGDONG INVESTMENT: Proposes Capital Reduction
------------------------------------------------
The board of directors of Guangdong Investment Limited intends
to put forward to the holders of the Company's ordinary shares
of HK$0.50 each (the Ordinary Shareholders) a proposal to reduce
the Company's share premium account by an amount equal
to the Company's accumulated losses as at 30 June 2003 and
immediately thereafter to apply the amount of the share premium
so reduced in eliminating the accumulated losses of the Company
as at 30 June 2003 (the Loss Elimination Reduction). The
Company's accumulated losses as at 31 December 2002 were
approximately HK$3,744,294,000. The Company is in the process of
finalizing its accumulated losses as at 30 June 2003 and will
provide the balance of those losses in the circular to be sent
to Shareholders (as defined below) in connection with the
Capital Reduction Proposal.

The Company currently has in issue 85,949 31/4 per cent.
redeemable cumulative convertible preference shares of par value
US$1 each and paid up value US$1,000 each (the Preference
Shares). The Preference Shares were issued on 26 May 1998. The
Board refers to the circular dated 23 August 2002 issued by the
Company, which contains further information on the Preference
Shares. GDH Limited (GDH) is the registered holder of 2,140
Preference Shares. The remaining 83,809 Preference Shares are
currently represented by global depositary receipts. Citibank,
N.A. is the registered holder of the remaining 83,809 Preference
Shares and the issuer and the depositary of the global
depositary receipts representing the same and holds all such
Preference Shares indirectly for GDH in accordance with normal
international clearing system practice (GDH and Citibank, N.A.
are together referred to as the "Preference Shareholders"). GDH
is therefore the beneficial owner of all the issued Preference
Shares.

The Board intends to put forward to the Ordinary Shareholders
and the Preference Shareholders a proposal (the Preference Share
Cancellation) involving the cancellation of the Preference
Shares and their replacement with (i) HK$497,320,000 5.1 per
cent. five-year bonds (the "Straight Bonds") and (ii)
HK$497,320,000 2.0 per cent. five-year convertible bonds (the
"Convertible Bonds"), both to be issued to GDH (as the
beneficial owner of all the issued Preference Shares) or its
nominee.

The Straight Bonds and Convertible Bonds are together referred
to as the "Bonds".

GDH will not receive any cash upon cancellation of the
Preference Shares under the Preference Share Cancellation, nor
will GDH make any cash subscription payment upon the issue of
the Bonds to it (or its nominee). The aggregate principal amount
of the Bonds will be HK$994,640,000. This is less than the
amount which GDH would have been entitled to receive upon a full
redemption of the Preference Shares pursuant to their terms
(being an amount equal to the aggregate of the paid-up par
value, credited as paid-up premium, redemption premium, and all
arrears and accruals of the outstanding fixed dividend accruing
and owing up to the date of issue of the Bonds (the Redemption
Amount)). Under a letter agreement dated 21 August 2003 between
the Company and GDH, GDH has agreed to waive the difference
between the Redemption Amount and the aggregate principal amount
of the Bonds.

The issue of the Bonds is conditional upon, inter alia, the
court's confirmation of the Preference Share Cancellation. As it
is not possible at this stage to know the date on which
the court will give its confirmation, it is not possible at this
stage to calculate (i) the Redemption Amount nor (ii) the amount
of the difference between the Redemption Amount and the
aggregate principal amount of the Bonds which GDH has agreed to
waive. However, for reference purposes only, assuming the Bonds
are issued to GDH (or its nominee) on 31 December 2003, the
Redemption Amount would be US$138,351,662 (approximately
HK$1,079,143,000). The aggregate principal amount of the Bonds
will be HK$994,640,000. The amount which GDH would therefore
be waiving under the Preference Share Cancellation is equivalent
to approximately HK$84,503,000.

The Loss Elimination Reduction and the Preference Share
Cancellation are independent exercises, and are not inter-
conditional. The Loss Elimination Reduction and the Preference
Share Cancellation are collectively referred to as the "Capital
Reduction Proposal".

REASONS FOR THE CAPITAL REDUCTION PROPOSAL

The Loss Elimination Reduction

As at 31 December 2002 (being the latest date to which the
audited consolidated accounts of the Company were made up), the
Company had accumulated losses of approximately
HK$3,744,294,000. Under the Companies Ordinance, the Company is
not permitted to pay dividends while there remain any
accumulated losses. In the usual course of events, the Company's
accumulated losses could only be reduced and eliminated by the
profits generated by the Company.

However, given the amount of the Company's accumulated losses as
at 31 December 2002 (and in light of the Company's net profits
of HK$143,201,000 for the year ended 31 December 2002), the
Board does not expect that the Company would be able to
eliminate such accumulated losses by profits (and therefore be
in the position to pay dividends on its Ordinary Shares) for a
number of years.

As at 31 December 2002, the balance on the Company's share
premium account was approximately HK$6,593,031,000. In light of
the Company's accumulated losses, the Board proposes to seek the
approval of the Ordinary Shareholders at an extraordinary
general meeting of the Company to be convened (the EGM), and the
court's confirmation, to reduce an amount standing to the credit
of the share premium account equal to the accumulated losses of
the Company as at 30 June 2003.

If the Loss Elimination Reduction is approved by the Ordinary
Shareholders and confirmed by the court, an amount equal to the
reduction in the share premium account will be applied in
immediately eliminating the Company's accumulated losses as at
30 June 2003 upon the registration by the Registrar of Companies
of Hong Kong of a copy of the Preference Share Order, together
with a minute relating to the share capital of the Company,
pursuant to section 61 of the Companies Ordinance.

The Board's intention is to eliminate entirely the Company's
accumulated losses as at 30 June 2003 from the date the Loss
Elimination Reduction becomes effective. The court's approval
will be sought to eliminate the accumulated losses entirely and,
failing which, to reduce such losses by the maximum amount
permissible.

Most of the Company's accumulated losses as at 31 December 2002
relate to provisions made by the Company for the impairment in
value of certain of its investments, some of which provisions
have yet to be realized. In order to obtain the court's
confirmation of the Loss Elimination Reduction, the Company will
undertake to the court that, inter alia, any recoveries from
such investments engendering any future write-back of such
provisions will not be distributed to the Ordinary Shareholders
until all of the Company's creditors existing at the date on
which the Loss Elimination Reduction takes effect have either
been paid or consented to the Loss Elimination Reduction.

The Loss Elimination Reduction, in eliminating the Company's
accumulated losses as at 30 June 2003, will enable the Company,
upon either the redemption of the Preference Shares or
cancellation of the Preference Shares under the Preference Share
Cancellation, to resume the payment of dividends out of any
distributable profits that may be generated by the Company in
the years subsequent to 2003.

The Preference Share Cancellation

The Company has 85,949 Preference Shares in issue, all of which
are beneficially owned by GDH. The aggregate of (i) the paid-up
par value and the credited as paid-up premium on the Preference
Shares (the Paid-Up Amount) and (ii) the redemption premium (the
Redemption Premium), as at 7 April 2003, is US$119,953,862
(approximately HK$935,640,000), representing an amount paid up
and credited as paid up of US$85,949,000 (approximately
HK$670,402,000) and a redemption premium of US$34,004,862
(approximately HK$265,238,000). Pursuant to the terms of their
issue, the Preference Shares were due to be redeemed on 7 April
2003. The Company was, however, unable to redeem the Preference
Shares on 7 April 2003 as a result of its accumulated losses.
Other than the increase in the fixed dividend pursuant to the
terms of the Preference Shares discussed below, the Company's
inability to redeem the Preference Shares on 7 April 2003 did
not attract any penalty under the terms of the Preference
Shares.

The Preference Shares carry a fixed dividend, which is currently
6.6 per cent. per annum calculated on the aggregate of the Paid-
Up Amount and Redemption Premium. Under the terms of the
Preference Shares, from 7 April 2004 onwards, the fixed dividend
will increase to 9.6 per cent. per annum calculated on the
aggregate of the Paid-Up Amount and Redemption Premium. The
fixed dividend is payable out of distributable profits generated
by the Company. However, if the Company has insufficient
distributable profits to pay the fixed dividend on the
Preference Shares, the unpaid amount will remain outstanding and
accumulate.

Whilst the Company continues to have accumulated losses, the
Company cannot generate sufficient distributable profits to pay
the fixed dividend on the Preference Shares. The unpaid fixed
dividend has therefore accumulated and, as at 30 June 2003,
amounted to US$14,417,331 (approximately HK$112,455,000). Any
unpaid accumulated fixed dividend is required to be paid on
redemption of the Preference Shares.

As the Company was unable to redeem the Preference Shares on 7
April 2003, the terms for the issue of the Preference Shares
require that, if the Company has distributable profits at any
time after 7 April 2003 (and is therefore in a position to
redeem the Preference Shares), the Company must apply its
distributable profits towards paying down the Redemption Amount
of the Preference Shares by way of partial redemptions until all
of the Preference Shares have been redeemed. Thus, the
continuation in issue of the Preference Shares would
significantly delay the date from which any dividends may be
declared or paid on the Company's ordinary shares.

The principal commercial objective for the Company in
undertaking the Preference Share Cancellation, therefore, is to
remove one of the primary bars to a resumption of dividend
payments on its ordinary shares out of any distributable
profits. The Board proposes to seek the approval of the Ordinary
Shareholders and the holders of the Preference Shares (together,
the Shareholders) at the EGM, and the court's confirmation, to
the Preference Share Cancellation. GDH, as the beneficial owner
of all the issued Preference Shares, has agreed to the
Preference Share Cancellation on the basis that the Bonds are
issued to GDH (or its nominee).

The combination of Straight Bonds and Convertible Bonds (of
equal principal amounts) to be issued to GDH (or its nominee)
pursuant to the Preference Share Cancellation was the result of
commercial negotiation between the parties.


HUDSON HOLDINGS: Deputy Chairman Chi Kwong Resigns
--------------------------------------------------
The Board of Directors of Hudson Holdings Limited announces that
Mr. Wong Chi Kwong has resigned as the Deputy Chairman of the
Board and Executive Director of the Company with effect from 21
August 2003. The Board would like to take this opportunity to
thank for Mr. Wong for his contribution to the Company.

On February 7, the Troubled Company Reporter - Asia Pacific
reported that the Company said that after considering the amount
of potential capital gain tax and the other taxes and expenses
associated with the Intended Disposal, it would not be in the
interest of the Company to proceed further with the Intended
Disposal. The Company and the JV Partner therefore mutually
agreed on 7th February, 2003 to terminate the negotiation on the
Intended Disposal


LAI FUNG: Shareholders OK Articles of Association Amendment
-----------------------------------------------------------
Reference is made to the circular dated 28th July 2003 of the
Company regarding, inter alia, the adoption of a share option
scheme, the grant of general mandates to repurchase and to issue
shares by Lai Fung Holdings Limited and amendments to the
articles of association of the Company.

The Board is pleased to announce that at the EGM held on 21st
August 2003, the ordinary resolutions for approving the adoption
of the Share Option Scheme, the grant to the Directors of the
Repurchase Mandate, the General Issue Mandate and the General
Extension Mandate and the special resolution for approving the
amendments to the articles of association of the Company were
duly passed by the Shareholders.

The Share Option Scheme is conditional on the Listing Committee
granting the approval for the listing of, and permission to deal
in, the Shares to be issued and allotted pursuant to the
exercise of the Options. Application has been made to the Stock
Exchange for the granting of such approval. The directors of the
Company confirm that the Share Option Scheme complies with
Chapter 17 of the Listing
Rules.


LINK CHEER: Winding Up Petition Set for Hearing
-----------------------------------------------
The petition to wind up Link Cheer Investment Limited will be
heard before the High Court of Hong Kong on September 3, 2003 at
10:00 in the morning.

The petition was filed with the court on July 23, 2003 by Tam
Chun Ming of Shop 306, Shek Lei Shopping Centre, Phase 2, Shek
Lei Estate, Kwai Chung, Hong Kong.


SKYLIGHT INTERNATIONAL: Petition to Wind Up Scheduled
-----------------------------------------------------
The petition to wind up Skylight International Trading Limited
is scheduled to be heard before the High Court of Hong Kong on
September 3, 2003 at 9:30 in the morning.

The petition was filed with the court on July 16, 2003 by Bank
of China (Hong Kong) Limited of 14th Floor, Bank of China Tower,
No. 1 Garden Road, Central, Hong Kong.


SHUN XING: Winding Up Petition Hearing Set
------------------------------------------
The petition to wind up Hong Kong International Investment
Limited is scheduled for hearing before the High Court of Hong
Kong on September 17, 2003 at 9:30 in the morning.

The petition was filed with the court on July 31, 2003 by Bank
of China (Hong Kong) Limited whose registered office is situated
at 14th Floor, Bank of China Tower, No. 1 Garden Road, Central,
Hong Kong.


VICTORY GROUP: Undertakes Placing Shares to Repay Debt
------------------------------------------------------
Victory Group Limited has entered into four Subscription
Agreements with Tai Man, Lu Suhua, Ng Lok Kei, and Yip Chi Kwan
Golar respectively on 18th August 2003 for the placing of
52,000,000 new Shares of HK$0.01 each in the share capital of
the Company to the 4 placees at a price of HK$0.02 per Placing
Share.

The Placing Price represents

   (i) a discount of approximately 60.78% to the closing
price of HK$0.051 per Share quoted on the Stock Exchange on 18th
August 2003, being the day of signing the 4 Subscription
Agreements and the last trading day before the suspension of
trading of the Shares on 19th August 2003;

   (ii) a discount of approximately 56.43% to the average of the
closing price per Share as quoted on the Stock Exchange of
approximately HK$0.0459 for the 10 trading days ended
18th August 2003; and

   (iii) a premium with reference to the Group's audited
consolidated net liabilities (based on the audited consolidated
net liabilities of the Group of approximately HK$13.43 million
as stated in the annual report of the Company for the year ended
31st December 2002).

The Group is in need of additional fundings. The Group has
explored various means of raising funds including additional
bank financing. The Placing is the only possible opportunity for
the Group to raise capital. The Placing Price represents a
premium with reference to the net liabilities of the Company.
After arm's length negotiation with the 4 placees and after
having considered the aforesaid circumstances, the Directors
consider the Placing Price is fair and reasonable and in the
interest of the Company.

Ranking of the Placing Shares:

The Placing Shares will rank pari passu in all respects among
themselves and with all other Shares in issue on the date of the
allotment and issue of the Placing Shares.

General mandate:

The Placing Shares will be allotted and issued pursuant to the
general mandate granted to the Directors at the annual general
meeting of the Company held on 28th May 2003. The general
mandate has not been utilized prior to entering into the
Subscription Agreements, and accordingly will be sufficient to
cover the issue of Placing Shares.

Conditions of the Placing:

The Placing is conditional upon (i) the Listing Committee
granting the listing of and permission to deal in the Placing
Shares; and (ii) the Bermuda Monetary Authority granting
permission for the allotment and issue of the Placing Shares (if
so required).

Completion:

The Placing is to be completed on or before the third Business
Day following the date on which all the conditions referred to
above are fulfilled, and in any event, no later than 18th
September 2003 or such other date as the Company and each of
the placees shall agree.

Application for listing:

The Company will make application to the Stock Exchange for the
grant of the listing of and permission to deal in the Placing
Shares.

USE OF PROCEEDS AND REASONS FOR THE PLACING

The Company is an investment holding company. The Group is
principally engaged in the marketing and wholesale distribution
of left-hand-drive motor vehicles. The Placing will generate a
total of HK$1,040,000 and net proceeds of about HK$950,000 after
payment of financial, legal, printing and publication charges.

The Company intends to apply approximately HK$600,000 for
repayment of debts and the remaining HK$350,000 for other
general working capital purposes. As the Company is in need of
additional fundings for its general working capital, the
Directors consider that the Placing represents a good
opportunity to raise further working capital for the Company
while at the same time broadening its shareholder and capital
base.

RESULTS OF LAST YEAR AND BANKING FACILITIES

The audited turnover and net loss attributable to shareholders
of the Group for the year ended 31st December 2002 were HK$33.43
million and HK$2.52 million, respectively. At present, the
banking facilities granted to the Group amounts to HK$21.64
million, which has fully utilized by the Group's subsidiaries.

FUND RAISING ACTIVITIES FOR THE PAST 24 MONTHS

During the past 24 months, the Company undertook 2 fund raising
exercises:

   (i) The issuing of 73,537,200 new shares (the "Rights
Shares") of HK$0.01 each on the basis of one rights share for
every two existing ordinary shares held by members of the
Company by way of rights issue at a price of HK$0.10 per rights
share, for net proceeds of about HK$6 million, of which HK$4.5
million was intended for reducing the borrowing of the Group and
the remaining HK$1.5 million for general working capital of the
Group. The Company has made announcement in this respect on 18th
December 2001.

The prospectus on the rights issue dated 8th January 2002 was
dispatched to qualified shareholders of the Company on 8th
January 2002, and no shareholders' approval was required on the
rights issue. The 73,537,200 Rights Shares were issued on 30th
January 2002. Net proceeds of HK$6.18 million were actually
raised, of which HK$3.5 million was used to reduce the bank
loans and the remaining funds of HK$2.68 million were used to
purchase merchandise for meeting the demand of the Group's
distribution sales in China.

   (ii) The placing of 44,000,000 new shares (the Placement
Shares) of HK$0.01 each at a price of HK$0.115 per share to 6
independent investors on 10th June 2002 for net proceeds of
approximately HK$4.5 million for the general working capital of
the Company. The Company has made announcement in this respect
on 28th May 2002. The price for the Placement Share of HK$0.115
per share represents a discount of approximately 4.96% to the
closing price of the Shares; i.e. HK$0.121 as quoted on the
Stock Exchange on 27th May 2002. The Placement Shares,
representing 19.94% of the then issued share capital of the
Company, were issued under the general mandate granted to the
Directors at the annual general meeting of the Company held
on 27th May 2002. The actual amount of net proceeds raised was
HK$4.36 million, of which HK$2 million was applied for reducing
the bank loans and the remaining HK$2.36 million was for the
procurement of updated inventories.

GENERAL

The Group is in need of additional fundings. The Group has
explored various means of raising funds including additional
bank financing. The Placing is the only possible opportunity for
the Group to raise capital. The Placing Price represents a
premium with reference to the net liabilities of the Group.
After arm's length negotiation with the 4 placees and after
having considered the aforesaid circumstances, the Directors
consider the terms of the Placing Agreement to be fair and
reasonable and in the interest of the Company and the
Shareholders as a whole. Further announcement will be made on
the status of the Placing as and when appropriate.

Trading of securities of the Company on the Stock Exchange was
suspended at 9:30 a.m. on 19th August 2003. Application will be
made to the Stock Exchange to resume trading of the securities
of the Company will effect from 9:30 a.m. on 22nd August 2003.

DEFINITIONS

"Board" board of Directors

"Company" Victory Group Limited, a company which is incorporated
in Bermuda with limited liability and listed on the Stock
Exchange

"Directors" the directors, including independent non-executive
directors, of the Company

"Group" the Company and its subsidiary

"Listing Committee" the Listing Committee of the Stock Exchange

"Listing Rules" the Rules Governing the Listing of Securities on
the Stock Exchange

"Placing" the placing of the Placing Shares pursuant to the 4
Subscription Agreements

"Placing Price" HK$0.02 per Placing Share

"Placing Shares" a total of 52,000,000 new Shares to be placed
under the Placing

"Shares" ordinary shares of HK$0.01 each in the share capital of
the Company

"Shareholder(s)" holder(s) of the Shares

"Stock Exchange" The Stock Exchange of Hong Kong Limited

"Subscription the 4 subscription agreements entered into between
the Agreements" Company and Tai Man, Lu Suhua, Ng Lok Kei and
Yip Chi Kwan Golar respectively on 18th August 2003 for the
placing of the Placing Shares

"HK$" Hongkong dollar


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


MERPATI NUSANTARA: Emitting Rp300B Bonds to Pay Debt
----------------------------------------------------
PT Merpati Nusantara Airlines plans to issue mandatory
convertible bond (MCB) worth about Rp300 billion as
restructuring scheme for its debt to PT Garuda Indonesia, Bisnis
Indonesia reports, quoting Merpati President Director Hotasi
Nababan.

"Perhaps we will sign the agreement on the restructuring late
this month," Nababan said, elaborating that the debt is in the
form of account payable accumulated for eight years coming from
Garuda's provided maintenance, and reservation service etc.

The restructuring is aimed at improving Merpati equity before it
proceeds with the planned emission of new share for strategic
investors. The company has thus far completed restructuring to
some of its debt such as the one to IBRA.

"If we could conclude all the debt restructuring, we'd be able
to rake profit this year, and reduce negative equity to attract
investors," he said, adding that the conversion of debt into MCB
helps improving financial structure since it wouldn't go to
balance but will turn to capital quasi.
  
  
* IBRA Earns Rp751B From PPAP3
------------------------------
The Indonesian Bank Restructuring Agency (IBRA) succeeded in
earning Rp751 Billion from the Property Asset Sales Program 3
(PPAP3), which was launched since July 14, 2003 till August 21,
2003. This revenue surpassed the previous PPAP2 revenue, which
was Rp647.9 Billion.

A total of 2647 assets were put for sale in PPAP3, 4771 bidders
were interested on individual asset category and 65 bidders on
bulk asset category. The results after the evaluation process on
the bid prices and bidder legal documents was a total of 894
winners for individual asset category and 15 winners for bulk
asset category.

Under bulk asset category, the most favorable asset was R50030
offering 13 units of villa in Mambruk West Java, which was bid
by 6 participants, and R50011 in form of 17 units of Apartemen
Hayamwuruk Jakarta, which was bid by 4 participants.

Under individual asset category, the most favorable asset was
F02634 located at Kompleks Sentra Niaga Utama Blok 7, Citraland
Surya Surabaya which was bid by 120 participants and F02632
located at Kompleks Pertokoan Darmo Park Blok B 19-20 Surabaya
which was bid by 90 participants.

The announcement of winners can be seen in IBRA Head Office and
in 6 BPPN Center which are in Bandar Lampung, Denpasar, Bandung,
Makassar, Semarang and Surabaya or by accessing IBRA website
http://www.bppn.go.id/indonesia/pa_ppap3_dafmen.asp.  

The next step will be the payment process by the winning
bidders, scheduled on 1 September 2003 through 15 September 2003
while refund of security deposits for non-winners will be
effective as from 1 September 2003.

The transfer of right and asset handover will be conducted at
the latest on 15 October 2003 while refund of security deposit
for the winning bidders will be conducted soon after the
transfer of entitlement.


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


DAIEI INC.: Court Orders Y1.38B Debt Payment
--------------------------------------------
The Tokyo District Court has ordered two units of ailing
retailer Daiei Inc. in charge of the group's Fukuoka business to
repay 1.38 billion yen in overdue loans to a Cayman Islands-
based investment firm Park Credit Management Co., Kyodo News
said on Friday.

The court fully supported the investment firm Park Credit in
demanding KK Fukuoka Dome and KK Fukuoka Daiei Real Estate repay
the outstanding sum.


FUJITSU LIMITED: S&P Cuts Rating to 'BB+pi' on Slow Recovery
------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its rating on
Fujitsu Limited to 'BB+pi' from 'BBB-pi', reflecting the
Company's weak financial profile and the relatively slow
recovery of its earnings and cash flow despite several years of
business reforms.

Like other electronics companies, Fujitsu continues to face
difficulty in securing profits in the platform business-which
includes computer hardware and communication equipment-amid
strong pricing pressures. The business environment is expected
to remain difficult, especially in the North American
telecommunications market, on which the Company still has a
relatively high dependence compared with its domestic peers. In
the electronic devices business, Fujitsu lacks competitive
products to ensure an improvement in earnings. Although the
Company's software business has offset weakness in its platform
and electronic devices segments, it is uncertain whether Fujitsu
can improve earnings from this business as planned, as
intensifying competition pressures its operating performance.

At the end of June 2003, Fujitsu's ratio of net debt to capital
was 64.5 percent, a further deterioration from 61.7 percent as
of March 2003. Fujitsu's capital structure, after adjusting for
differences in accounting standards, is the weakest among
Japan's five integrated electronics companies. The rating could
be lowered further if the Company does not achieve a recovery in
earnings and reduce debt as planned. Fujitsu's ability to
improve earnings and cash flow from its mainstay businesses will
also have a key impact on its future credit quality.

Fujitsu has adequate cash and equivalents and unused committed
lines to cover its payments of corporate bonds and long-term
debt maturing within a year. The Company also maintains
sufficient financing resources through its good relationship
with its major stockholder, Mizuho Corporate Bank.

However, as the Company's internal cash flow remains weak, its
ability to refinance and obtain funds from capital markets and
financial institutions will also be closely monitored in
assessing its credit quality.


HANKYU CORPORATION: JCR Assigns BBB+ Rating to Bonds
----------------------------------------------------
Japan Credit Rating Agency (JCR) has assigned a BBB+ rating to
the bonds to be issued under the shelf registration of Hankyu
Corporation.

Issue Amount (bn) Issue Date Due Date Coupon
Bonds no.32 Y30 Sept. 16, 2003 Sept. 15, 2006 1.50 percent

Covenants: Negative Pledge & Collateralized
Commissioned Company: Yes
Shelf Registration:
Maximum: Y200 billion
Valid: two years from March 19, 2002

RATIONALE:

JCR announced the assignment of BBB+ rating to the previous
series of bonds to be issued by Hankyu on June 13, 2003. There
have been no significant events affecting the rating since then.
The proceeds from sales of this series of bonds will be used for
repayment of the short-term funds. The operating profit is
expected to drop for fiscal 2003 due to temporary drop in travel
and finance businesses. The disposal of loss with respect to
reorganization of the business will be finished. The earnings
power of Hankyu is on the rise, supported by progress of the
restructuring. However, cutback in the business risk through
achievement of optimum asset size and that in interest-bearing
debt will remain as an urgent matter to be made in the near
future.

Hankyu incurred a net loss of 89.3 billion yen for fiscal 2002.
The write-offs of land for development-use deteriorated the
financial structure sharply. On the other hand, the
restructuring has been going well, increasing the earnings. The
immediate task for Hankyu, however, is reduction in the
interest-bearing debt by slashing the assets so that it can
reduce the business risk through optimum asset size.


KINKI NIPPON: JCR Affirms BBB+ Rating
-------------------------------------
Japan Credit Rating Agency (JCR) has affirmed the BBB+ rating on
the bonds of Kinki Nippon Railway Co. Ltd.

Issue Amount (bn) Issue Date Due Dat Coupon
Convertible
Bonds no.6 Y30 Nov. 10, 1995 Mar. 31, 2008 1.00%

RATIONALE:

Kinki Nippon Railway has gotten through critical period of
write-offs of the assets. It will gather pace of implementing
measures to achieve the targets under the restructuring plan.
Earnings are expected to increase for fiscal 2003 centering on
transportation and leisure businesses. However, hotel operations
are suffering from poor performance while there is concern about
drop in earnings power of real estate business. Kinki Nippon
Railway cut the interest-bearing debt by a little less than 130
billion yen in fiscal 2002 through securitization of real
estate.

Although the interest-bearing debt will be reduced further
through sell-off of the assets, Kinki Nippon Railway should
improve the unprofitable operations first. JCR will watch
carefully the future developments as to the strengthening of
earnings power through improvement in leisure, particularly
hotel business, and the progress of implementation of the
measures for improvement in asset utilization.


KYUSHU INDUSTRIAL: IRCJ Bails Out Bus Firm
------------------------------------------
The state-backed Industrial Revitalization Corporation of Japan
(IRCJ) has picked Kyushu Industrial Transportation Co. as one of
the first firms it will bail out under its rescue program, Kyodo
News reported on Saturday. The largest bus Company in Kumamoto
Prefecture, southwestern Japan, is likely to be among several
companies to be picked by the IRCJ as the first corporations it
will assist in rehabilitation.


NIPPON STEEL: Fitch Affirms Ratings at 'BB+'; Outlook Stable
------------------------------------------------------------
Fitch Ratings, the international rating agency, has affirmed
Nippon Steel Corporation's (Nippon Steel) Senior Unsecured
rating at 'BB+' and Short-term rating at 'B'. The Outlook is
Stable.

The ratings reflect the company's improved but still weak
financial profile while the severe industrial operating
environment as characterized by sluggish demand - especially
from the domestic construction industry - protectionism by the
US and China, and the problem of global steel overcapacity,
remain fundamentally unchanged. Chinese demand for steel,
however, is rising and remains the main driver for world demand.
But Fitch foresees a slowdown in its import demand as production
from its domestic steel companies increase. The agency also
notes that the joint venture between Nippon Steel and the
Shanghai-based Baoshan will have limited effect on the former's
financial performance in the short-term, while it should prove
to be an effective strategic move for the company to expand its
steel business in China in the long-term.

Nippon Steel performed well in fiscal year ended (FYE) March
2003: sales increased by 7% year-on-year to Y2.7 trillion and
operating profit doubled to Y143 billion. Its mainstay steel
business recovered thanks to a rising volume of steel sales to
domestic auto manufacturers, as well to customers in Asia, and
partly by strengthening market prices as a result of inventory
adjustments. Nevertheless, the company posted a net loss of
Y52billion due mainly to valuation losses on investment
securities and allowances for doubtful accounts.

At the same time, Nippon Steel's financial profile has improved.
It reduced debts by Y143 billion over one year, or 7%, to Y1.87
trillion as of FYE March 2003. This was below the company's own
target of Y1.9 trillion. The main contributors were strong
operating profit as well as holding capital expenditure. As a
result, net debt to EBITDA ratio improved to 5.3x compared to
7.2x in the previous year. Nevertheless, leverage is not at a
favorable level compared to the company's global peers.

Nippon Steel, Sumitomo Metals, and Kobe Steel are forming a
three-way alliance. In January 2003 Nippon Steel and Sumitomo
Metals each invested Y5 billion in the other while Nippon Steel
and Kobe Steel made a cross-investment of Y3 billion each.
Nippon Steel will begin co-operation with Sumitomo Metals in
consolidation of stainless operations, supply of sheet steel and
repair of blast furnaces and in distribution with Kobe Steel.
These efforts are estimated to save the three companies a
combined total of Y50 billion in costs, yet are not enough for a
drastic improvement in earnings structure compared to European
steel companies, which have already experienced sector
consolidations.


NIPPON TELEGRAPH: Denies IIJ Takeover Report
--------------------------------------------
Nippon Telegraph and Telephone Corporation (NTT) on Thursday
denied a newspaper report that it may take a 30 percent stake in
Internet service provider Internet Initiative Japan Inc (IIJ)
for 10-20 billion yen (US$85-169 million), according to Reuters.

The report came a day after IIJ affiliate Crosswave
Communications Inc filed for protection from creditors in Japan
with total group debts of 68.4 billion yen, highlighting the
difficult market conditions facing data service companies.

Five telecommunications carriers sued the Japan Ministry of
Public Management, Home Affairs, Posts and Telecommunications
over an access fee increase by Nippon Telegraph and Telephone
Corporation (NTT), according TCR-AP recently. The five involved
are KDDI Corp., Japan Telecom Co., Poweredcom Inc., Cable &
Wireless IDC Inc. and Fusion Communications Corp.

On April 22, the ministry approved a plan to allow NTT East
Corporation and NTT West Corporation to raise by an average 5
percent the fees they charge other carriers to access their
phone lines, the first increase since the current fee system was
introduced in 1994. The ministry decision enraged the five
firms, which say it should be nullified and claimed that the
calculation of communications costs is inaccurate because NTT's
two regional phone units should not be treated equally in view
of differences in their cost structures.


NIPPON TELEGRAPH: Develops Diamond Semiconductor Devices
--------------------------------------------------------
Nippon Telegraph and Telephone Corporation (NTT) has developed
diamond semiconductor devices whose operating frequency and
power are the highest in the world. These diamond devices will
one day replace the vacuum tubes now used in the very-high-
frequency, very-high-power region, leading to increased output
power in communication satellites, television broadcasting
stations, and radar.

NTT Basic Research Laboratory (BRL), in collaboration with the
University of Ulm, Germany, succeeded in fabricating a diamond
semiconductor device using high-purity diamond crystals. The
device's highest operation frequency is 81 G (G=109) Hz. It
therefore operates as an amplifier in the millimeter region
(frequency: from 30 to 300 GHz), which is the first time this
has been achieved for any kind of diamond device. Owing to the
properties of the diamond semiconductor, the device dissipates
heat very rapidly and can withstand operation at very high
voltages, and will operate very stably even in space.
The major problem in fabricating devices from diamond
semiconductor had been that the diamond films contained many
more defects and impurities than silicon and other
semiconductors. In April 2002, NTT developed technology for
fabricating high-quality diamond semiconductor, which solved
this problem. The semiconductor device technology developed by
University of Ulm accelerated the fabrication of diamond
semiconductor devices.

Features

1) Realization of diamond semiconductor devices.
2) Amplification of 81 GHz; the millimeter frequency band.
3) Reliability of long-term operation even in the space.
4) Operation in the high power region boosts output power of
communication satellites and broadcasting stations.
5) High power devices (output power: 30 W/mm) feasible, with
development of peripheral technologies.

Background

Recently, communication capacity has drastically increased.
There is therefore a demand for high-frequency high-power
electronic devices that can operate at high frequencies. A
portable telephone needs only about 1 W at 1.5 GHz, but
communication satellites and television broadcasting stations
require 1 kW at 10 GHz (Fig. 1). In the 10-GHz frequency region,
vacuum tubes are still used. However, vacuum tubes exhibit low
energy efficiency, and thus a high-energy loss. From the
environment viewpoint, semiconductors should replace these
vacuum tubes.

From the material standpoint, silicon, silicon carbide, gallium
arsenide, and gallium nitride are all used in practical
applications. Theoretical predictions, however, have shown that
ideal diamond semiconductor devices would operate at five times
the temperature, 30 times the voltage, and 3 times the frequency
of silicon devices (Fig.

2). This is because diamond has very high thermal conductivity,
high breakdown voltage (*1), and high maximum carrier velocity
(*2), which respectively result in rapid heat dissipation, long
lifetime, and high-frequency operation. Therefore, diamond has
been touted as the ultimate semiconductor; the one most suitable
for high-frequency high-power electronic devices.

Future

NTT BRL is now working to further improve the quality of diamond
crystal by decreasing the impurities. The target is a frequency
of 200 GHz with an output power of 30 W/mm.

Definitions of Terms

*1 Breakdown voltage
When a voltage higher than a certain value is applied to a
semiconductor, the semiconductor is destroyed. This phenomenon
is called breakdown. The high-voltage limit at which breakdown
does not occur is called breakdown voltage. This voltage depends
on the type of material. A material with a high breakdown
voltage can be used in high-voltage operation, and has an
advantage as a high power device. Diamond is a hard material and
has a very high breakdown voltage.

*2 Maximum carrier velocity, Carrier velocity

Carriers are electrons or positive holes, and their velocity
governs how a device performs. Generally, a crystal with high
crystalline quality has a high carrier velocity, and this
results in high operation speed in a device.

The high limit of carrier velocity is called the maximum carrier
velocity. Ideal diamond has a higher maximum carrier velocity
than other semiconductors.

*3 Graphite components, crystalline defects, Impurity

Graphite, like diamond, consists of carbon atoms. However,
carbon atoms in diamond have four arms (chemical bonds). On the
other hand, carbon atoms in graphite have only three arms.
Crystalline defects are disordered carbon atoms surrounded by
ordered carbon atoms. Impurities are atoms other than carbon,
like oxygen and hydrogen.

For further information, contact:

Minako Sawaki, Hirofumi Motai
Planning Division
NTT Science and Core Technology Laboratory Group
Tel: 046-240-5152
E-mail: st-josen@tamail.rdc.ntt.co.jp


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


DAEWOO MOTOR: GM & Bupyeong Plant Votes to Strike
-------------------------------------------------  
Labor union members at GM Daewoo and Daewoo Inchon Motor have
voted to strike, Digital Chosun reports. The strike is expected
to dampen GM Daewoo's planned acquisition of the Bupyeong plant.
The union of blue-color workers at the two car plants said that
about 8,000 workers were asked to cast strike votes on Wednesday
and Thursday, and the resolution on the strike passed with an
approval ratio of 78.8 percent.

The union and management of the carmakers have been in wage
negotiations nine different times since July 10, but have failed
to narrow differences over the wage hike for the year. The union
demanded a 24.34 percent hike in the basic salary, the removal
of salary differences between regular and non-regular workers,
and the reemployment of all of the former workers of Daewoo
Motor. The management has been insisting on a 10.3 percent wage
increase for this year.


HANARO TELECOM: Shares Up 7.04% on Major Support
------------------------------------------------  
Hanaro Telecom Inc. shares soared 7.04 percent to 13,100 won on
news that its major shareholders LG Group, SK Telecom and
Samsung Electronics decided to undertake convertible bonds worth
200 billion won in an effort to save the Company from a
liquidity crunch, the Korea Herald reported Thursday. However,
analysts remained neutral on the Company, saying that the
purchase of CBs by its major shareholders is just one of the
many things that should be done before Hanaro ends its liquidity
problem.


HYNIX SEMICONDUCTOR: Plans to Sell Non-Memory Units
---------------------------------------------------  
Hynix Semiconductor said on Thursday that several potential
buyers have already completed spot examinations regarding the
assets and debts of its non-memory business units, and added
that it hopes to seal a memorandum of understanding (MOU) by
next month, the Maeil Business Newspaper said on Friday.  
The Company currently has non-memory production lines in its
Echon and Kumi production facilities, and three production lines
in its Chungju production plant.


HYUNDAI GROUP: Kumgang Aims to Rearrange Group Structure
--------------------------------------------------------
Chung Sang-young, Chairman of Kumgang Korea Chemical Co., wanted
to participate in the management of Hyundai Group to try to
stabilize it, according to JoongAng Daily. Chung is the uncle of
Chung Mong-hun, the leader of Hyundai Group who committed
suicide early this month. Chung is reportedly eyeing the posts
of registered Director at Hyundai Merchant Marine Co., Hyundai
Elevator and Hyundai Logistics Co.

Chung will also purchase shares in the major Hyundai affiliates
with his private funds, the report said, adding that there could
be a shakeup of top management of Hyundai Group's leading units
if Mr. Chung asserts a management role. Chung Sang-young is the
youngest brother of Chung Jun-yung, the founder of the group. He
had been the Chief Executive Officer (CEO) of Kumgang Korea
Chemical until April 2000, when he stepped back from active
management.


SK GLOBAL AMERICA: Turning to KPMG LLC for Financial Advice
-----------------------------------------------------------
SK Global America Inc., and its debtor-affiliates cannot
reorganize its affairs or comply with the reporting requirements
of Chapter 11 without the assistance of outside accountants.
Hence, by this motion, the Debtor seek Judge Blackshear's
authority to employ KPMG LLC as accountants and financial
advisors, nunc pro tunc to July 21, 2003.

SK Global America is a subsidiary of South Korean SK
Global Co., Ltd., one of the world's leading trading companies.

SK Global America's Chief Executive Officer, Seung Jae Kim,
asserts that KPMG is well qualified to provide the accounting
and financial advisory services needed by the Debtor in its
Chapter 11 case. KPMG LLP is a firm of independent public
accountants. The Debtor has selected KPMG LLP as its accountants
and financial advisors because of the firm's diverse experience
and extensive knowledge in the fields of accounting, taxation
and bankruptcy.

Having participated in some of the largest bankruptcy
proceedings and out-of-court restructurings in the country, the
Debtor believes that KPMG is both well qualified and uniquely
able to provide services in a most efficient and timely manner.
In addition, the Debtor needs assistance in collecting,
analyzing and presenting accounting, financial and other
information in relation to the Chapter 11 case. KPMG's
employment, therefore, is essential and should be approved.

KPMG is expected to:

a. Monitor daily cash position and manage other elements of
working capital to manage liquidity;

b. Assist in gathering and analyzing information necessary to
assess the options available to the Debtor;

c. Assist in the preparation of the Debtor's financial
projections and assumptions;

d. Advise and assist the Debtor in negotiations and meetings
with equity holders, secured lenders, creditors and any official
or informal creditor committees;

e. Advise the Debtor on negotiations with potential debtor-in-
possession lenders;

f. Assist with identifying and analyzing potential cost-
containment opportunities;

g. Assist with identifying and analyzing asset redeployment and
liquidation opportunities;

h. Assist in the preparation and review of reports or filings as
required by the Bankruptcy Court or the United States Trustee,
including the preparation of the Debtor's Schedules of Assets
and Liabilities, Statement of Financial Affairs and Monthly
Operating Reports;

i. Perform other accounting services as may be necessary or
desirable, including, if applicable, implementation of
bankruptcy accounting procedures as required by the Bankruptcy
Code and generally accepted accounting principles;

j. Advise and assist the Debtor in connection with tax planning
issues, and other tax consulting, advice, research, planning or
analysis as may be requested from time to time;

k. Evaluate potential employee retention and severance plans;

l. Analyze assumption and rejection issues regarding executory
contracts and leases, including the preparation of damage
calculations;

m. Prepare liquidation analyses; and

n. Provide other financial analysis as may be requested.

The Debtor intends to compensate KPMG the customary hourly rates
charged by the firm's personnel anticipated to be assigned to
the Debtor's case as:

Partner $540 - 600

Managing Director/Director 450 - 510

Senior Manager/Manager 360 - 420

Senior Staff/Consultants 270 - 330

Associate 180 - 240

Paraprofessional 120

KPMG will also be reimbursed for necessary expenses incurred,
which includes travel, photocopying, delivery service, postage,
vendor charges and other out-of-pocket expenses incurred in
providing professional services.

The Debtor has informed KPMG, and KPMG is aware, that its
compensation for services rendered will be fixed by the Court
upon application and in accordance with the applicable
provisions of the Bankruptcy Code, the Bankruptcy Rules and the
Local Bankruptcy Rules for the Southern District of New York.
KPMG will bill its time in increments of one-tenth of an hour.

In addition to the professional fees, out-of-pocket expenses
like support staff assistance, transportation, lodging, meals,
telephone and report production are billed at cost. KPMG will
maintain detailed records of any actual and necessary costs and
expenses incurred in connection with the services to be rendered
to the Debtor.

Leon Szlezinger, a principal at KPMG LLP, relates that KPMG has
received an advance payment retainer equal to $100,000 from the
Debtor. KPMG will hold the retainer and apply it against
postpetition fees and expenses, to the extent the Court allows.
KPMG is not a prepetition creditor of the Debtor's estate, and
has received no other payments from the Debtor in the 90 days
preceding the initiation of the bankruptcy case.

Mr. Szlezinger assures the Court that KPMG is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code. Furthermore, KPMG has no connection with, and holds no
interest adverse to, the Debtor, its estate, creditors, or any
other party-in-interest in the matters for which the firm is to
be employed. (SK Global Bankruptcy News, Issue No. 3; Bankruptcy
Creditors' Service, Inc., 609/392-0900)


SK SHIPPING: SFC Files Accounting Fraud Against Chairman
--------------------------------------------------------
The Securities and Futures Commission (SFC) has filed a
complaint with prosecutors against SK Shipping Co.'s Chief
Executive Officer (CEO) Son Kil-seung over accounting
irregularities in the Company, according to Reuters. The latest
allegations come after Son was given a suspended three-year jail
term in June for his role in a US$1.2 billion accounting fraud
at group's trading arm, SK Global Company.

The allegations come after an audit conducted by another
regulator, the Financial Supervisory Service, which oversees the
banking industry, indicated that a net loss of 223.7 billion won
(US$190.3 million) in SK Shipping's 2001 books had been stated
as only a 17.3 billion won shortfall. An SK Shipping spokesman
declined to comment, while SK Group spokesman Bahng Ji-man said
the Company would wait to see what prosecutors decided.


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


ARUS MURNI: SPA Agreement Fulfilled
-----------------------------------
On behalf of the Board of Directors of Arus Murni Corporation
Berhad (AMCB), in relation to the status of the acquisition of
Consistent Harvest Sdn Bhd (CHSB), announced that the Company
has received a letter on 20 August 2003 from Messrs Peter Cheah
& Co., the due diligence lawyer confirming that:

Status of the Acquisition of CHSB

All conditions precedent specified in Sale and Purchase
Agreement between the Vendors of CHSB and AMCB have been
fulfilled save and except for the issuance and listing of the
Irredeemable Convertible Loan Stock (ICULS) on the Kuala Lumpur
Stock Exchange (KLSE)

The Company will be providing updates/announcements on the
status of the acquisitions as soon as it becomes available.


GOLDEN FRONTIER: Winds-Up Inactive Subsidiary Companies
-------------------------------------------------------
The Board of Directors of Golden Frontier Berhad hereby announce
that is has during the Board of Directors' Meeting on 21 August
2003 decided to wind-up its dormant/in-active subsidiary
companies as below:

   1. Golden Frontier Development Sdn Bhd;
   2. Sound Rich Resources Sdn Bhd;
   3. Alcamax Ventures Sdn Bhd; and
   4. Carian Wawasan Sdn Bhd.

The Company Secretary is instructed to take all necessary action
on the above matter.


HOTLINE FURNITURE: Unit Disposes Property for RM9M
--------------------------------------------------
The Board of Directors of is pleased to announce that Hotline
Development Sdn Bhd (HDSB), a wholly owned subsidiary company of
Hotline Furniture Berhad (Hotline) had on 15 August 2003 entered
into a Sale & Purchase Agreement (SPA) with Mydin Mohamed
Holdings Berhad to dispose off its property located at Lot 676,
Mukim of Damansara, District of Petaling, Selangor for a cash
consideration of RM9 Million (Proposed Disposal).

Details Of Property

The property is an industrial lot comprised of 7 warehouse bays
with a total built up area of approximately 5,978 square meters
built on a piece of freehold land of 3 acres.

The cost of investment of the property was RM10.7 million in
1995. The net book value of the property based on the last
audited accounts as at 31 May 2002 was RM13.55 million.

Consideration

The consideration for the Proposed Disposal of RM9 million was
arrived at on a willing buyer willing seller basis after taking
into consideration the Market Value of the property at RM9
million as ascribed by a firm of independent professional
valuers, Messrs KS Dhillon on 8 August 2003.

Salient Terms of SPA

The salient terms of the SPA are as follows:

(a) Condition Precedent

The SPA is conditional upon the following :

   (a) HDSB obtaining its shareholders and chargee for the sale
and transfer of the property;

   (b) MMHB obtaining the consent from the local authorities for
a business license on the property.

(b) Payment Terms

The consideration for the Proposed Disposal will be satisfied as
follows:

   (i) RM900,000 representing 10% of the consideration was paid
to Hotline's solicitors as stakeholders upon signing of the SPA;

   (ii) RM8,100,000 representing 90% of the consideration will
be paid upon completion.

(c) Completion

Upon fulfillment and satisfaction of the Condition Precedents,
the Proposed Disposal will complete by 31 January 2004. An
extension of time for 30 days is provided with an interest rate
of 10 percent per annum.

APPROVALS REQUIRED FOR THE PROPOSED DISPOSAL

The Proposed Disposal will be subject to, inter alia:

(a) the approval of the shareholders of Hotline at an
Extraordinary General Meeting; and

(b) any other relevant authorities, if required.

Rationale For the Proposed Disposal

The Proposed Disposal is part of Hotline Group restructuring
exercise and the proceeds from the Proposed Disposal will be
used to retire the property's term loan.

Effects of THE Proposed Disposal

Earnings

Upon completion, the Proposed Disposal will result in a loss of
RM4.55 million in Hotline Group for the financial year ending 31
May 2004.

Share Capital

The Proposed Disposal will not have any effect on the issued and
paid-up share capital of the Company.

Directors and substantial shareholders' interest

None of the Directors and substantial shareholders of Hotline
have any interest, direct or indirect in the Proposed Disposal.

Directors' recommendation

The Directors of Hotline have considered all aspects of the
Proposed Disposal and are of the opinion that the Proposed
Disposal is in the best interest of the Hotline Group.


KAI PENG: Replies KLSE's Proposed Disposal Query
------------------------------------------------
Kai Peng Berhad, in reply to KLSE's Query Letter reference ID:
MN-030819-41376 on Proposed Disposal of Land and Factory
(Property) to Rich Assets Development Sdn Bhd (Rich Assets)
(Proposed Disposal), furnished the following additional
information as requested:

   1) The expected gain from the Proposed Disposal is
approximately RM2.7 million;

   2) No liabilities are assumed by Rich Assets arising from the
Proposed Disposal apart from the normal statutory payments
required by all owners from the effective date of the completion
of the sale;

   3) The dates of investment on the land and building are 1990
and 1994 respectively;

   4) The Proposed Disposal has not departed from the Securities
Commission's Policies and Guidelines on Issue/Offer of
Securities;

  5) The Property's description is as follows:

     a) The factory cum office was no longer in operation and
was basically unoccupied at the time of disposal;

     b) The factory is approximately 8 years of age;

     c) The expiry of the lease is on 11/6/2029;

     d) Latest Valuation done by Independent Valuer Jones Lang
Wootton in 16 July 1998. The methods of valuation used are the
Comparison Method, Cost Method and Investment Method. The
valuation was made at RM5.5 million.

KLSE's Query Letter content:

We refer to your Company's announcement dated 18 August 2003, in
respect of the aforesaid matter. In this connection, kindly
furnish the Exchange with the following additional information
for public release:

   1) The expected gains or losses arising from the Proposed
Disposal;
   2) Particulars of all liabilities to be assumed by Rich
Assets arising from the Proposed Disposal;
   3) The date of investment by your Company in the Property;
   4) A statement whether the Proposed Disposal has departed
from the Securities Commission's Policies and Guidelines on
Issue/Offer of Securities;
   5) A description of the Property including:

     (a) the existing use; if currently used as a factory, the
effect of a disposal on the operations
     (b) the approximate age of the factory
     (c) the expiry date of the lease
     (d) whether any valuation was carried out on the Property;
if so, the name of the independent registered valuer, date and
method of valuation and quantification of the market value

Please furnish the Exchange with your reply within two (2)
market days from the date hereof.

Yours faithfully,
TAN YEW ENG
Senior Manager, Listing Operations
TYE/LMN
copy to:- Securities Commission (via fax)


MECHMAR CORPORATION: Provides Defaulted Loan Status Update
----------------------------------------------------------
Mechmar Corporation (Malaysia) Berhad advised that as at 30 June
2003, an additional principal sum of RM7M is due for payment on
the syndicated term loan of RM26M managed by Utama Merchant Bank
Berhad, bringing the total principal in default to RM 18M.

There is no change to the rest of the loans in default.
Repayment is being made as per agreed schedules.

The list of loans in default as at 31 July 03 can be viewed at
http://bankrupt.com/misc/TCRAP_Mechmar0825.xls


MECHMAR CORPORATION: Unit Sale Proceeds Used to Settle Loan
-----------------------------------------------------------
Further to Mechmar Corporation (Malaysia) Berhad's announcement
on 24 February 2003 in respect of the sale of its wholly owned
subsidiary, Bells Properties Sdn Bhd, the Company informed that
the sales consideration of RM7.92 M has been fully received on
15 August 2003.

The full sales consideration has been released to Utama Merchant
Bank Berhad to partially settle the Company's outstanding
syndicated term loan of RM26M leaving a balance of RM18.08M as
at of August 21, 2003.


METROPLEX BERHAD: Court Grants Restraining Order Time Extension
---------------------------------------------------------------
Metroplex Berhad refers to the earlier announcement on 21 July
2003 in relation to the Restraining Order and Proposed Debt
Restructuring of the Group.

The Board of MB wishes to announce that the High Court of Malaya
has on 19 August 2003 granted MB and its 15 subsidiaries a
further extension of the Restraining Order under Section 176 of
the Companies Act, 1965 to 21 February 2004.


METROPLEX BERHAD: Land Disposal Completed  
-----------------------------------------
Further to the announcement made by Metroplex Berhad on 7 April
2003 pertaining to the Completion of Disposal of Three (3)
Pieces of Land to Pusat Pakar Tawakal Sdn Bhd by Metroplex
Centrepoint Sdn Bhd, a Wholly-Owned Subsidiary of Metroplex
Berhad.  

The Board of Directors of MB is pleased to announce that its
wholly-owned subsidiary, Metroplex Centrepoint Sdn Bhd has on 19
August 2003 completed the disposal of three (3) pieces of land
held under Geran 4396 Lot No. 62, Geran 4426 Lot No. 92, Geran
11332 Lot No. 128, all of Section 85A, Town of Kuala Lumpur,
District of Kuala Lumpur, State of Wilayah Persekutuan, Kuala
Lumpur collectively measuring in area 12,331.10 square metres to
Pusat Pakar Tawakal Sdn Bhd for a total cash consideration of
RM28,271,681.70.


OILCORP BERHAD: Ng Tian Completing RM5M Shares Purchase
-------------------------------------------------------
Oilcorp Berhad refers to the announcement made on 4 July 2003 in
relation to, inter-alia, the Call and Put On Option Agreement
entered into between the Creditors' agent (CA) and Ng Huat Tian,
Haji Ahmad bin Jamaludin, Azaruddin bin Ahmad and Pua Yow Liang
(Option Shareholders).

Pursuant to clause 4.1 of the Call Option Agreement, where in
the event, a call option is exercised and the call option price
exceeds the 15% therehold as stipulated by the Kuala Lumpur
Stock Exchange (KLSE)' the Option Shareholders shall give a
Direct Business Transaction Notice (DBT Notice) to the KLSE.

In order to facilitate expeditious implementation of the
exercise of the call option, the Option Shareholders and the CA
had on 20 August 2003 agreed to Ng Huat Tian (one of the Option
Shareholders) immediate exercise of the call option pursuant to
clause 4.3(b) of the Call Option Agreement, at a price of RM1.97
in respect of the 5 Million ordinary shares in the Company.

Given the same and pursuant to clause 4.5 of the Call Option
Agreement, the CA shall indemnify Ng Huat Tian against the
difference in cash between the transacted price of RM1.97 and
the call option price.

Pursuant to clause 3.2 of the Call Option Agreement, Ng Huat
Tian on 20 August 2003 served an Option Notice on the CA in
respect of the 5 Million ordinary shares at the call option
price in accordance with the Call Option Agreement, the CA is
bound to sell & Ng Huat Tian is bound to complete the purchase
of the 5 Million ordinary shares.


PAN PACIFIC: Appoints Tan Wing Sum as Director
----------------------------------------------
Pan Pacific Asia Berhad posted this Change in Boardroom Notice:

Date of change : 20/08/2003  
Type of change : Appointment
Designation    : Director
Directorate    : Independent & Non Executive
Name           : Tan Sri Dato' Chen Wing Sum
Age            : 71
Nationality    : Malaysian
Qualifications :

(a) Read Philosophy & Education in Chinese University Hong Kong
under International Junior Chamber of Commerce Scholarship

(b) Barrister-at-Law, Lincoln's Inn, London

Working experience and occupation  :

(i) Professional:  He is an Advocate & Solicitor since 1962 and
currently a Consultant of Messrs Michael Chen, Gan, Muzafar &
Azwar.

Official: He is a Member of the Parliament from 1964 till 1986
and a Member of the Senate from 1997 till 2003:

   (a) Parliamentary Secretary (1964-1969)
   (b) Minister with Special Function (1973-1974)
   (c) Minister of Housing, Local Government and New Village   
       (1974-1979)
   (d) Deputy President of the Senate (1997-2000)
   (e) President of the Senate (2000-2003)

Politics:
   (a) Treasurer-General Barisan Nasional (1974-1982)
   (b) Secretary-General Alliance (1972-1974)
   (c) Deputy President-Malaysian Chinese Association (1977-
       1979)
   (d) Vice-President-Malaysian Chinese Association (1973-1977)

Corporate:

   (a) Chairman of Klang Port Authority (1984-2000)
   (b) Chairman of Malayan Borneo Finance (1972-1973)
   (c) Chairman of MULPHA International Bhd (1994-1997)
   (d) Director of Arab-Malaysian Development Bhd (1997-2000)
   (e) Director of Dijaya Corporation Bhd (1995-2000)
   (f) Director of Gopeng Berhad (1994-2000)
   (g) Director of Pan Pacific Asia Bhd. (1993-2000)
   (h) Director of People Insurance (M) Sdn Bhd (1996-2000)
   (i) Chairman of Malaysian South-South Corporation Berhad
       (since 1992)
   (j) Advisor to Road Builder (M) Holdings Bhd (appointed on 1
       June 2003)

He also has vast experience on international affairs and during
his term of office as President of the Senate, he had officially
been invited to visit Japan, China, Middle East, Latin America,
India and Eastern Europe.

Directorship of public companies (if any) : AMDB Berhad
Family relationship with any director and/or major shareholder
of the listed issuer : Nil
Details of any interest in the securities of the listed issuer
or its subsidiaries : Nil

The Troubled Company Reporter - Asia Pacific reported that the
Default in Payment as at 31 July 2003 of PPAB and its
subsidiaries in accordance with the Practice Note No. 1/2001.
Details are tabled at
http://bankrupt.com/misc/TCRAP_PPAB0819.xls.


PSC INDUSTRIES: Proposals Completion Date Extended for a Year
-------------------------------------------------------------
PSC Industries Berhad refers to the announcement dated 17 August
2001 in respect of the Securities Commission's (SC) approval on
the Proposals, comprising:

   * Proposed Debt Restructuring
   * Proposed Restricted Offers for Sale
   * Proposed Waivers Of Mandatory General Offers

On behalf of PSCI, Aseambankers Malaysia Berhad is pleased to
announce that the SC had, via its letter dated 19 August 2003
approved the extension of the completion date for the Proposals
to 15 April 2004.


RENONG BERHAD: Disposes of Assets to Redeem SPV Bond  
----------------------------------------------------
Renong Berhad refers to the announcement on 30 August 2002 where
it was announced that the shareholders of Renong approved,
amongst others, the resolution for the proposed disposal by
Fleet Group Sdn Bhd of its entire 11.16% equity interest held in
Commerce Asset-Holding Berhad (CAHB) to buyer(s) to be
identified. The shareholders mandate for the aforesaid disposal
is valid for a period of one (1) year from the date of the
Extraordinary General Meeting, which was held on 30 August 2002.

Further to the above, Fleet Group had on 8 July 2003 disposed of
158,000,000 ordinary shares of RM1.00 each in CAHB (CAHB Shares)
representing approximately 6.17% equity interest in CAHB as at
12 March 2003 to various institutional investors for a total
cash consideration of RM594.08 million or RM3.76 per CAHB share.

Renong is pleased to announce that on 21 August 2003, Fleet
Group has agreed to dispose an additional 78,152,326 CAHB Shares
(Disposal Shares), representing approximately 3.05% equity
interest in CAHB as at 12 March 2003, to Employees Provident
Fund at the same price as those disposed to the abovementioned
institutional investors of RM3.76 per CAHB Share amounting to a
total cash consideration of RM293.9 million. The disposal shall
be effected by way of direct business transactions on Kuala
Lumpur Stock Exchange.

DETAILS OF THE DISPOSAL

The price of RM3.76 was arrived at on a willing buyer wiling
seller basis. The price of RM3.76 represents a discount of 4.1%
and 1.0% to the market price of CAHB Shares and its five (5)
weighted average market price up to 21 August 2003 of RM3.92 and
RM3.797 respectively.

The Disposal Shares will be disposed of free from all liens,
mortgages, charges and other encumbrances together with all
dividends, distributions and other benefits attaching to the
Disposal Shares.

The Disposal Shares are currently pledged as security for the
RM8,197,620,000 nominal amount zero coupon redeemable secured
guaranteed bond 1999/2006 (SPV Bond) issued by Renong Debt
Management Sdn Bhd, a subsidiary of Renong, to UEM. The gross
proceeds of RM293.9 million from the Disposal, after deduction
of expenses, will be applied towards the partial redemption of
the SPV Bond.

Upon completion of the Disposal, Fleet Group's equity interest
in CAHB shall be reduced from 128,152,326 CAHB Shares to
50,000,000 CAHB Shares representing 1.95% equity interest
therein based on the paid-up share capital of CAHB as at 12
March 2003.

RATIONALE OF THE DISPOSAL

As disclosed in the Circular to shareholders of Renong dated 15
August 2002, the Disposal is part of Renong's strategy to
systematically dispose of its assets to redeem the SPV Bond
since the completion of its debt-restructuring scheme in 1999.

The Disposal is also consistent with the direction of Renong and
its subsidiaries (Renong Group) of not having banking as part of
its core business.

FINANCIAL EFFECTS OF THE DISPOSAL

Share capital and substantial shareholding

The Disposal will not have any effect on the share capital and
substantial shareholders' shareholding of Renong.

Earnings

The Disposal will result in a one-off gain of approximately
RM121.7 million to Renong after taking into consideration the
realization of the net revaluation surplus of approximately
RM131.9 million on the Disposal Shares. This will also result in
savings in interest expense of approximately RM28.2 million per
annum.

Details are set out in Table 1 at
http://bankrupt.com/misc/TCRAP_Renong0825.pdf.   

Net tangible assets (NTA)

Details of the effect on the NTA of the Renong Group are set out
in Table 2 at http://bankrupt.com/misc/TCRAP_Renong0825.pdf.   

CONDITIONS OF THE DISPOSAL

All necessary approvals for the Disposal have been obtained as
follows:

   (i) Securities Commission, on 12 September 2002, the expiry
date of which has been extended to 12 September 2003 via its
letter dated 7 July 2003;

   (ii) Foreign Investment Committee, on 30 August 2002; and

   (iii) Shareholders of Renong, on 30 August 2002.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

None of the Directors and/or major shareholders or persons
connected to them have any interest, direct or indirect in the
Disposal.

DIRECTORS' RECOMMENDATION

The Directors of Renong, after careful deliberation, are of the
opinion that the Disposal is in the best interest of the
Company.


SETEGAP BERHAD: Restructures RM9M Credit Facilities
---------------------------------------------------
Setegap Berhad announced that its subsidiary, Paving Plant &
Processes (M) Sdn. Bhd. (PPP) has entered into a sale and
purchase agreement (S&P) with Mr. Looi Vean Seng and Mr. Quah
Hooi Eng (the Purchasers) on 21st August 2003 for the disposal
of PPP's 100% equity interest comprising of 2 ordinary shares of
RM1.00 each fully paid in Rentak Bakat Sdn. Bhd. (Disposal
Shares), for a total cash consideration of RM2,550,000 (Disposal
Consideration).

Information on Rentak Bakat Sdn. Bhd.

RBSB was incorporated on 19th April 1997. Its present authorized
and issued and paid-up capital is RM100,000 and RM2
respectively. RBSB was acquired by PPP on 31st July 1997 for a
total consideration of RM1,204,000. It is an investment holding
company, having 51% equity interest in Dayalam Industries Sdn.
Bhd. (DISB), a quarry operator. It has no other investment.

SUMMARY OF KEY CONSOLIDATED FINANCIAL INFORMATION
31/12/2002
                                     RM million
1. Revenue                             15.4
2. Profit/(loss) from operations        1.13
3. Net profit/(loss) for the period     0.48
4. Basic earnings/(loss) per share      0.24
5. Net tangible assets per share        1.00

Information on the Purchasers

a) Mr. Looi Vean Seng, a Malaysian, aged 44 is a businessman
running his own family business. His company, Perniagaan &
Pengangkutan Win Soon Sdn. Bhd. deals mainly in general
transportation. Mr. Looi has been actively involved in this
business for the past 30 years.

b) Mr. Quah Hooi Eng, a Malaysian, aged 44 is a businessman
involved in the construction business. His Company Nadi Cergas
Sdn. Bhd. is principally involved in building and infrastructure
works.

Basis of the Disposal Consideration

The disposal consideration of RM2,550,000 was arrived at on a
willing buyer-willing seller basis negotiated at arm's length
between PPP and the purchasers. Based on the cost of the
Company's investment in RBSB of RM1,204,000, the Proposed
Disposal will generate a profit of approximately RM1,346,000 to
PPP.

Rationale for the Proposed Disposal

On 23rd August 2000, PPP entered into a Debt Restructuring
Agreement with its bankers namely Malayan Banking Berhad,
Southern Bank Berhad and HSBC Bank Malaysia Berhad. The salient
terms of the agreement were that PPP is to restructure its
existing credit facilities of RM9.0 million into a 4-year term
loan.

To date, the outstanding amount under the term loan is RM6.3m
with the next installment of RM2.7m due on 31st October 2003.
PPP intends to utilize the proceeds from the sale towards
fulfilling its obligation under the DRA.

Financial Effects of the Proposed Disposal

On Share Capital

The Proposed Disposal will not have any effect on the issued and
paid-up share capital of Setegap Berhad.

On Net Tangible Asset (NTA)

The Proposed Disposal will not have any material effect on the
consolidated NTA of Setegap Group for the financial period
ending 31 December 2003.

On Earnings

The Proposed Disposal will not have any material effect on the
Earning of Setegap Group for the financial year ending 31
December 2003.

Conditions to the Proposed Disposal

PPP's shareholders in its Extraordinary General Meeting convened
and held on 20th August 2003 have approved the Proposed
Disposal.

The salient terms of the S&P are as follows:

   i) PPP agrees to sell and the Purchasers agree to purchase
the Disposal Shares, free from all claims, charges, liens,
encumbrances and equities whatsoever together with all rights
attached thereto and all dividends rights and distributions
declared paid or made in respect thereof from the date of
registration of the Disposal Shares in favor of the Purchasers
or their nominees for the consideration.

   ii) The Purchasers shall settle the Disposal Consideration of
RM2,550,000 in the following manner:

     (a) upon execution of the S & P, the Purchasers shall pay
to PPP's solicitors the sum of RM255,000 in cash, being 10% of
the Disposal Consideration as deposit and part payment towards
the Disposal Consideration;

     (b) The balance Disposal Consideration of RM2,295,000 shall
be paid by the Purchasers to PPP's solicitors within 3 months
from the date of the S & P (the Completion Date);

     (c) in the event that the Purchasers fail to pay the
Balance Disposal Consideration or any part thereof by the
Completion date, PPP shall grant an extension of 1 month to the
Purchasers to make payment of the Balance Disposal Consideration
or any part thereof provided always that the Purchasers shall
pay to PPP interest on the unpaid amount at the rate of 10% per
annum commencing from the day following the expiration of
Completion Date up to the date of full payment of the Balance
Purchase Price.

The Proposed Disposal is not subject to the approval of the
shareholders of Setegap Berhad or any government authorities.

Directors' and Substantial Shareholders' Interest

None of the Directors and Substantial Shareholders of Setegap
Berhad or persons connected with them have any interest, direct
or indirect, in the Proposed Disposal.

Directors' Opinion on the Proposed Disposal

The Directors of the Company are of the opinion that the
Proposed Disposal is in the best interest of the Company.

Completion of the Proposed Disposal

The Proposed Disposal is expected to be completed by early
November 2003 whereupon all conditions precedent as set out in
the S & P are fulfilled including the full payment of the
disposal consideration by the Purchasers to PPP.

Documents for inspection

Copies of the sale and purchase agreement relating to the
Proposed Disposal will be available for inspection at the
registered office of PPP during normal office hours for a period
of two (2) weeks commencing from the date of this announcement.


SURIA CAPITAL: RA Time Extension Request Approval Pending
---------------------------------------------------------
Reference is made to Suria Capital Holdings Berhad's  
announcement made on 3rd June 2003 in which had announced that
the KLSE had via a letter dated 3rd June 2003 approved Suria's
application for an extension of time of three (3) months from 23
May 2003 to 22 August 2003 to make the Requisite Announcement
pursuant to paragraph 6.1 of PN 10/2001 of the KLSE Listing
Requirements.

Sabah State Economic Planning Unit via its letter dated 19
August 2003, had notified the Company that the Federal Cabinet
had approved the proposed privatization of the seven (7) ports
under the jurisdiction of Sabah Ports Authority (SPA) subject to
certain conditions. It is also stated in the same letter that
there are a few outstanding pertinent issues, which need to be
resolved between the State Government of Sabah, SPA and Suria
prior to the execution of the Privatization Agreement. Hence,
the Requisite Announcement is not expected to be made by 22nd
August 2003.

In view of the above, Suria had on the 21st August 2003 sought a
further extension of time from the KLSE to make the Requisite
Announcement, the approval from the KLSE of which is currently
pending.


TAT SANG: Court Orders MMWF Winding Up
-------------------------------------
Tat Sang Holdings Berhad refers to the Winding-Up Petition: W &
V Marketing Sdn Bhd VS Mercuries & Muar Wooden Furniture
Manufacturing Sdn Bhd on 17 January 2002, claiming the sum of
RM42,384.00 being balance purchase price of goods sold and
delivered as of 22 June 2001.

The Board of Directors of TSHB (Board) wish to announce that on
7 August 2003, MMWF was wound up by order of the court.


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


MANILA ELECTRIC: Plans New Borrowings to Pay Off Debts
------------------------------------------------------
The Manila Electric Co. (Meralco) is looking at borrowing anew
to pay off maturing obligations, according to Business World on
Friday. Meralco is scheduled to repay 1 billion pesos in
September and 1.2 billion pesos in October. Earlier, European
bank ING said Meralco might have to borrow at a higher cost due
to its negative credit rating, which means the credit risk may
be higher. In an August study, the bank said it would likely
cost Meralco 12 percent to raise dollar-denominated debts with a
five-year maturity, as against the current average cost of debt
at 8 percent.

The Company is having cash flow problems because of a Supreme
Court ordered the firm to refund overcharges it collected
between 1994 and 2003. Meralco estimates that the refund would
amount to around 30 billion pesos. Meanwhile, Meralco also has
to look for funds to pay off 4.7 billion pesos in short-term
debts falling due in January.


UNIWIDE HOLDINGS: Swings to P140.75M Profit in First Half
---------------------------------------------------------
Debt-saddled retail and property firm Uniwide Holdings Inc.
posted a net profit of 140.75 million pesos in the six months to
June, versus a net loss of 116.53 million pesos in the same
period last year, finally ending a five-year losing streak that
led to its receivership and rehabilitation starting 1999,
Business World reported Friday.

Retail operations ended January-June in the black with the help
of cost-cutting measures and profits from Uniwide's debt for
property swaps with its banks. Uniwide assets totaled 7.8
billion pesos as of June 30, from 7.64 billion pesos as of end-
December last year. Its liabilities reached 5.10 billion pesos,
almost unchanged from the 5.08 billion pesos at the start of the
year.


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


JADE PALACE: Releases Winding Up Order Notice
---------------------------------------------
Jade Palace Kitchen Pte Ltd. issued a winding up notice made on
the 8th day of August 2003.

Name and address of Liquidator: The Official Receiver
45 Maxwell Road #05-11
The URA Centre (East Wing)
Singapore 069118.

CENTRAL CHAMBERS LAW CORPORATION
Solicitors for the Petitioner.


KOO HENG: Issues Notice of Winding Up Order
-------------------------------------------
Koo Heng Goldsmith & Jewelry (Pte) Limited issued a notice of
winding up order made on 8th August 2003.

Name and address of Liquidator: The Official Receiver
Insolvency & Public Trustee's Office
45 Maxwell Road #05-11/#06-11
The URA Centre, East Wing
Singapore 069118.

RAJAH & TANN
Solicitors for the Petitioner.


NEPTUNE ORIENT: Posts US$68.5M Profit in Turnaround
---------------------------------------------------
Shipping firm Neptune Orient Lines (NOL) posted a second quarter
net profit of US$68.5 million against a loss in the same period
last year, according to Channel News Asia. This makes it the
second straight quarter and first half year that NOL is back in
the black. Earlier this year, the group completed its sale of
American Eagle Tankers and expects its next sale to be valued at
about 50 to 60 million dollars. NOL says it'll continue to
divest its non-core assets.

NOL reported a second year of losses in 2002 and has to sell
assets to reduce $2.8 billion of debt, $264 million of which is
due by June, the Troubled Company Reporter-Asia Pacific reported
recently.


SINCEM HOLDINGS: Issues Debt Claim Notice to Creditors
------------------------------------------------------
The creditors of Sincem Holdings Pte Ltd., which are being wound
up voluntarily, are required on or before 15th September 2003 to
send in their names and addresses and the particulars of their
debts or claims, and the names and addresses of their solicitors
(if any), to the liquidators, c/o 47 Hill Street #05-01, Chinese
Chamber of Commerce & Industry Building, Singapore 179365, and
if so required are to come in and prove their debts or claims as
shall be specified or in default will be excluded from the
benefits of any distribution made before such proof.

WONG KIAN KOK
KON YIN TONG
WILLIAM CAVEN HUTCHISON
Joint Liquidators.


VERTEX CHINA: Goes Into Voluntary Liquidation
---------------------------------------------
The creditors of Vertex China Pharmaceutical Investment Pte Ltd,
which is being wound up voluntarily are required on or before
the 15th day of September 2003 to send in their names and
addresses and particulars of their debts or claims, and the
names and addresses of their solicitors (if any) to the
undersigned, the liquidator of the Company and, if so required
by notice in writing by the liquidator are, by their solicitors
or personally, to come in and prove their debts or claims at
such time and place as shall be specified in such notice, or in
default thereof they will be excluded from the benefit of any
distribution made before such debts are proved.

LEE KHENG NAM
Liquidator.
c/o 77 Science Park Drive
#02-15 Cintech III
Singapore Science Park
Singapore 118256.


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


ASIA HOTEL: SET Suspends Securities Trading
-------------------------------------------
Previously, the Stock Exchange of Thailand has posted the NP
(Notice Pending) sign against the securities of ASIA Hotel
Public Company Limited (ASIA) since 20 May 2003 and 18 August
2003 because ASIA submitted the SET its first and second
quarterly reviewed financial statements ending 31 March 2003 and
30 June 2003 with its auditor reported his inability to reach
any conclusion and the SET was waiting for the conclusion
whether the company has to amend its financial statements.

The Securities and Exchange Commission (SEC) informed the SET
that it is not necessary to amend ASIA's financial statements on
the issue that the auditor stated, therefore, "NR" (Notice
Received) sign is posted against ASIA's securities effective on
August 22, 2003 to announce that the SET received the conclusion
from the SEC.  

However, the SET has still suspended trading all securities of
ASIA until the causes of de-listing are eliminated.


CHRISTIANI & NIELSEN: Posts Debt Restructuring Plan Progress
------------------------------------------------------------
CN Advisory Company Limited, as Plan Administrator of
Christiani & Nielsen (Thai) Public Company Limited, held a
meeting on the 23 July 2003 and resolved to reduce and increase
capital in accordance with the Reorganization Plan approved by
the Central Bankruptcy Court on the 2nd May 2003. The details
are as follows:

1. Approved to transfer money reserved according to the law in
the amount of Bt28,481,390 and transfer share premium in the
amount of Bt1,139,892,473.42 to compensate for the accumulated
loss.

2. Approved to reduce un-paid capital in the amount of
18,035,800 shares at Bt10 per share, thereby reducing registered
capital from Bt1,592,193,200 to Bt1,411,835,200.

3. Approved to reduce capital to compensate for the accumulated
loss by reducing the value per share from Bt10 to Bt0.01 (1
Satang). The registered paid capital is thereby reduced from
Bt1,411,835,200 to Bt1,411,835.20.

4. Approved to increase capital from Bt1,411,835.20 to
Bt312,015,580 allocated as follows:

     4.1 Allocate 31,060,370,400 new ordinary shares to present
shareholders in the proportion of 1 : 220 new shares in the
value of Bt0.01 (1 Satang) with an offer sale price of Bt0.01 (1
Satang) per share;

     4.2 Allocate 80 new ordinary shares to private placement in
the value of Bt0.01 (1 Satang) with an offer sale price of
Bt0.01 (1 Satang) per share.

If shares allocated in 4.1 and 4.2 are not sold out, they will
be allocated to Crown Property Bureau and/or Siam Commercial
Bank Public Company Limited. The reason for the increase of
capital is to provide the Company with sufficient capital to
operate the business

5.  Approved to alter the par value of share from Bt0.01 to Bt1.

On 30th July 2003 CN Advisory Company Limited, as Plan
Administrator has submitted the above details and requested The
Central Bankruptcy Court order the reduction and increase of
capital including the revision of the Memorandum of Association.

The Central Bankruptcy Court has inquired on the 5th of August
2003 1:30 p.m. and ordered the Planner Administrator to proceed
as requested.  

The book-closing of shareholders registered for the right to buy
the increase of capital will be followed after the registration
of reduction of capital is completed. The report will be
submitted in the mean time.


DATAMAT PUBLIC: Clarifies Investors' Misunderstanding   
-----------------------------------------------------
Reference is made to the Stock Exchange of Thailand's news
article on August 19, 2003 warning the investors about investing
in securities of companies in REHABCO group.  Then, on August
20, 2003, the same news was also published in several daily
newspapers.  This caused misunderstandings among investors and
shareholders that the securities of Datamat Public Company
Limited (DTM) is under the consideration for trading suspension,
or signed SP.  The misunderstanding has caused panic sales of
DTM.  As a result, the closing price of DTM on August 20, 2003
fell to Bt1.41 from that of August 19, 2003 at Bt1.83, or 22.95%
down.

The Company has concerned that the misunderstanding is likely to
cause losses and damages to investors and the Company's Capital
Increase Plan and business.  Therefore, the Company would like
to provide the following information for more accurate and
better understanding of investors:

1. DTM is actively and normally traded in the SET market in the
REHABCO group.  Currently, the Company has not yet been informed
by SET or is being under any circumstances that DTM might be
suspended from trading (signed SP).

2. The Company is at the final stage of the Capital Increase
Plan of approximately Baht500 million.  The Plan involves the
selling of 321 million new shares to specific 38 types of
investors (Private Placement) according to the announcement of
SEC and the rehabilitation plan, which has been approved by the
Company's shareholders.

3. The money in the amount of approximately Baht170 million will
be used as repayments of debts to 5 creditor banks.  These banks
have agreed to reduce the Company's debts to 60% under the
condition of one time repayment.  After these debt repayments,
the Company's debts under the debt restructuring contract, under
the Bank of Thailand's supervision, will be Bt280 million with 7
banks, and will be repaid within 7.5 years.

4. After the abovementioned Capital Increase and debt
repayments, it is expected that the equity will be positive, and
the debt : equity ratio will be below 1:1.

5. However, the real value of the Company, which is in the ICT
business, must be inclusively assessed with the information
technology (IT) knowledge, know-hows and the value of the
Company's and the group's intellectual property rights.  The
restructuring of the Company needs to include continuance of
technology expansion, development and personnel development, not
only financial restructuring.

The Company is confidence that of its business and
rehabilitation program.  The Company's consolidated revenues
have increased 340 % comparing to the same period of the last
year.  There are projects on hands and the sales of software
have shown positive signs in the 3rd Quarter, both domestically
and overseas in 7 countries.  


MDX PUBLIC: Clarifies Q203 Financial Statement
----------------------------------------------
Wittayu Planner Co., Ltd., on behalf of the Plan Administrator
of MDX Public Company Limited, announced that as the auditor did
not assure that Q2/2003 financial statements and consolidated
financial statements of MDX Public and its subsidiaries were
presented fairly, the following are clarified:

1. Liabilities shown in MDX's financial statements and MDX and
its subsidiaries' consolidated financial statements are higher
than its assets, together with a high level of deficit.  All
these factors cause concern about the company's continued
operation. The financial statements are, then, prepared
on going concern basis.

MDX is under implementation of Rehabilitation Plan, which has
already been approved by the Central Bankruptcy Court. After
completion of the Plan, MDX will have roughly about 16.43
percent of its principal liabilities left while its paid-up
capital will increase to Bt4,756.30 million. Furthermore,
its deficit will be cleared off.

2. Financial statements of four subsidiary companies
incorporated in the consolidated balance sheet incurred loss
from operation and substantial deficit. Two of them are inactive
while others have large amount of interest expense. These cause
loss from operation on those companies.

3. MDX did not record tax and penalty, which were assessed by
the Revenue Department for an amount of Bt160.02 million into
its liabilities.

The Revenue Department have assessed taxes and penalty on MDX'
revenue for total amount of Bt286.22. However, MDX is quite
confident that the assessment is higher than it should be. MDX,
then, filed the petition to the Revenue Department's committee
for reinvestigation of the tax assessment. It is now under
consideration process of the committee.

4. The statement of income of one associated foreign company,
accounted for investment by equity method, has not been reviewed
by any auditors. Investment in another associated company was
not recorded by equity method in MDX's financial statements.

The reasons are that one associated company is a foreign company
while the other is not listed in the Stock Exchange of Thailand.
So, they are not obliged to prepare quarterly financial
statements as listed company. Furthermore, MDX can not
participate in management activities due to its limited
shareholding.

Due to the above factors, the auditor is, then, unable to assure
that the financial statements and consolidated financial
statements of MDX and its subsidiaries were presented in
accordance with generally accepted accounting principles.
However, MDX has already disclosed all sufficient information in
its financial statements.

Furthermore, MDX would like to clarify the main factors that
caused Q2/2003 operating result differ more than 20 percent from
those in 2002 as follows:

1. In Q2/2003, MDX transferred its land valued Bt180.20 million
to the Industrial Estate Authority of Thailand (IEAT) to offset
its Bt183.89 million liabilities as stated in the Joint
Cooperating Agreement. The land transferred has book value of
Bt19.54 million. The difference totaling Bt160.66 million was
booked as Profit from transfer of land.

2. Interest payable, totaling Bt32.62 million, arising from
breach of agreement to the IEAT was reversed. This means
increase in Other revenue.


PAE (Thailand): Incurs Bt36.56M Q203 Net Loss
---------------------------------------------
PAE (Thailand) Public Company Limited (PAE) reported that the
performance of the second quarter 2003 has a net loss Bt36.56
million compared to Bt114.19 million in the same period of 2002.
This is due to:

1.) Revenue from sales and construction works in the second
quarter of 2003 is Bt12.54 million which has decreased by 37.89%
or Bt7.65 million

2.) In the second quarter of 2003 cost of sales and construction
work was Bt20.62 million, which represents 164.39% of revenue
from sales and construction. Cost of sales and construction in
the second quarter of 2002 was Bt38.58 million or represents
191.04% of revenue from sales and construction.

3.) The selling and administration expenses in the second
quarter of 2003 was Bt7.98 million or decreased by 43.36% from
the same period of last year. Interest expenses were still high
with an amount of Bt14.90 million or increased by 14.91%. In
addition, provision of doubtful debt of a trade debtor was
written-back in an amount of Bt59.64 million. Further
information in this regard please refer to the auditor report.  

4.) Current liabilities exceed current assets by Bt3,119.85
million which includes long-term liabilities Bt781.18 million.
The Amended Plan has recognized the liabilities before
Rehabilitation. The Amended Plan of PAE that was approved by the
Central Bankruptcy Court on 15 November 2002 is under the
implementation step. The Plan Administrator expected that the
investor should inject the remaining capital fund into PAE
restructuring fund account according to the Amended Plan. The
Plan Administrator should subsequently distribute the return to
creditors in accordance with the Amended Plan subject to the
approval to increase paid-up capital from the Ministry of
Commerce and the issuance shares of Thai Securities Depository.

Following the issuing of the new shares and the repayment to
creditors, the balance sheet of PAE will show significant
positive equity. The revenue forecast for the remaining year is
THB 300 m and new investor two has advised that sufficient
working capital lines and bonding facilities are in place to
further expand on this revenue base.


UNION MOSAIC: Posts Convertible Debentures Details
--------------------------------------------------
The Union Mosaic Industry Public Company Limited posted the
Essential Details of Convertible Debentures:

1. Objective of issuance: To comply with Debt Restructuring
                          Contract between the Company and
                          Thai Asset Management Corporation
                          and TISCO Finance Plc. (Debt
                          Restructuring Contract).

2. Detail of convertible debenture

      Type              : Convertible debenture without
                          collateral with specific holder and no
                          representative of debenture's holder.
      Maturity          : 5 years counted from the date of
                          issuing debenture.

      Number of convertible debenture issued  : 160,000 shares

      Par value         : Bt1,000.00 each
      Sales price per shares : Bt1,000.00 each
      Total values      : Bt160,000,000.00
      Date of issuing   : When approval has been granted by
                          the Office of the Security and
                          Exchange Commission, which expect
                          to be within September 30th, 2003.
      Maturity date     : 5 years counted from the date of
                          issuing debenture.
      Collateral          : Without collateral.

      Interest payment date: Interest payment twice a year,
                             every 6 months counted from the
                             date of issuing convertible
                             debenture.
      Interest rate     : Float interest rate equal to interest
                          rate specified in Debt Restructuring
                          Contract of the Company, which is
                          MLR of Thai Asset Management
                          Corporation minus one percent year.

      Conversion ratio  : 1 convertible debenture per 100
                          common shares.
      Converting price  : Bt10.00

      No. of common share issued to support the issuance of
      convertible debenture: 16,000,000 shares

      Period of time for exercising right: Convertible debenture
                  holders shall exercise the right to convert
                  convertible debenture to common
                  shares every opening day of the
                  commercial bank during maturity period
                  of convertible debenture.
      Sales offering: 144,744 shares of convertible
                      debenture will be first to offer for sales
                      to both Thai Asset Management
                      Corporation as debtors of the
                      Company and 15,256 shares to TISCO
                      Finance Plc. the other debtors before
                      the issuance of the debenture, for the
                      benefit of debt restructuring and to
                      comply with Debt Restructuring
                      Contract.   

     Right to purchase back debenture before maturity:
                 Issuers of debenture can purchase back
                 convertible debenture from Thai Asset
                 Management Corporation and TISCO
                 Finance Plc. amount 57,896 shares
                 and 6,104 shares accordingly within 3
                 months counted from the date of
                 issuing debenture with price Bt1,000.00
                 each plus accrued interest counted from the
                 date of last interest payment to the date the
                 Company purchase back plus return benefit in
                 price Bt250.00 each. And the issuers of
                 convertible debenture will have to
                 cancel convertible debenture that purchase
                 back immediately.     

Right of issuers to redeem debenture before maturity: Issuers   
                 of convertible debenture do not have right to
                 redeem convertible debenture before maturity.

     Limitation of transfer: Transfer of debenture no matter
                 times it take, it should be limited to the
                 persons that are former debtors of the
                 Company before the offer to sell
                 convertible debenture under the Debt
                 Restructuring Contract.

     Affect of issuance convertible debenture : Since the
                number of shares that prepare to support the
                right to convert convertible debenture will be  
                50 percent of number of all issue and
                paid up of the Company. If right has
                been exercised to purchase all of
                common share, it will have an impact
                to shareholders of the Company in the
                matter of ratio of ownership or right to vote
                (control dilution) of shareholders and
                the price to exercise the right to
                convert debenture will be lower than
                the market price, which will create the
                affect on price (price dilution) as the
     Followings:                                            
             
           1. The affect to original shareholders
              in decreasing of ratio of ownership or
              right to vote of original
              shareholders (control dilution). In
              case right to convert convertible
              debenture has all been exercised
              by calculating from issue and paid
              up of present capital.

   Total amount of shares that all have been paid up = 32,000,0
00 shares x (par value of Bt10 each).

   Total amount of shares that all come from exercising right =  
16,000,000 shares x (par value of Bt10 each).

   Total number of shares after right has been exercised =
48,000,000 shares x (par value of Bt10.00 each).

   Ratio of original shareholders after right has been exercised  
= 66.67 percent

2. The affect to price of share (price dilution) when right to   
                     convert debenture has been exercised will
                     have an impact to price of share  and
                     since debenture holders can exercise
                     their rights every day, the calculation
                     of impact to price of share has been
                     calculated using the assumption from
                     marketing, which was the closing price
                     of the Company at August 19th, 2003
                     and under the assumption that
                     debenture holders exercise their right
                     to convertible debenture immediately
                     after the allotment.

Therefore the Board of Director and or the person that the Board
of Director has been appointed, has the right to set up details
and other conditions of convertible debenture according to
regulation and condition of Debt Restructuring Contract of the
Company.


UNION MOSAIC: Releases BOD Meeting No. 1/2546 Resolutions
---------------------------------------------------------
The Union Mosaic Industry Public Company Ltd. informed the
resolution of the Board of Director's meeting, held on August
20th, 2003 at the Company's meeting room as follows:

1. The Meeting of the Board of Director passed a resolution to
cancel the Extraordinary General Meeting of Shareholders No.
1/2546, which is scheduled to be held on September 2, 2003 at
65 Rama 9 Road, Huaykwang, Bangkok and also to cancel the
closing of the share register book for attending the
Extraordinary Shareholders' Meeting that fix on August 13, 2003
up until the meeting has been duly convened.

The Company has to cancel the Extraordinary General Meeting of
Shareholders, because the Company has to practice according to
rule and principle of the office of the Security and Exchange
Commission about the issuance of convertible debenture and right
to exercise converting to common shares at the price lower than
the market price. The cancellation of the Extraordinary
General Meeting of Shareholders and renew meeting will be a
benefit to the shareholders to get enough additional information
according to rule and principle of the office of the Security
and Exchange Commission for approval.

If the Company does not conduct accordingly, the Company shall
not be able to issue convertible debenture to debtors of the
Company in order to restructure debt within the specific time in
the Debt Restructuring Contract between the Company and group
of debtors of the Company, which will be the subjects for
debtors of the Company to sue the Company to force a case with
the Company according to original value of debt. And if the
Company shall issue the convertible debenture within the
specific time, the Company will receive the deduction of debt
(Haircut) by an amount of Bt408,262,138.00 included all amount
of accrued interest, which will bring a good result to the
Company and shareholders in order to improve the financial
status of the Company.

2. The Meeting of the Board of Director passed a resolution that
the Extraordinary General Meeting of Shareholders No. 1/2546 is
rescheduled to be held on September 23, 2003 at 10:00 a.m. at
the Company's meeting room, 29th floor, Chamnan Phenjati
Business Center Building, 65 Rama 9 Road, Huaykwang, Bangkok, to
consider the following matters:

      - Agenda No. 1: To approve the minutes of the Annual
General Meeting of Shareholders No. 1/2003.

      - Agenda No. 2: To consider the issuance of convertible
debenture amount Bt160 million as to pay debt for the creditors
according to the details in the issuance of convertible
debenture report form.

      - Agenda No. 3: To consider an offer to sell exercised
convertible debenture at a price lower than the market price
according to The Office of the Security and Exchange
Commission's requirement.

      - Agenda No. 4: To consider the increase of registered
capital of the Company from Bt320 million to Bt480 million by
mean of the issuance of new ordinary shares amount 16,000,000
shares with par value of  Bt10 according to the details in the
capital increase report form.  

      - Agenda No. 5: To consider the amendment of the Company's
prospectus about registered capital of the Company as the
followings:
     
        - Registered capital: Bt480,000,000.00
        - Divided into48,000,000.00 shares
        - Par value of Bt10.00
        - Shall be separated as:
        - Ordinary shares 48,000,000 shares
        - Preferred shares  - shares

      - Agenda No. 6: To consider the allotment of capital
increase in term of common shares as the followings:

     1. Amount 16,000,000 shares to support the converting of
convertible debenture.

     2. Amount 6,400,000 shares for an offer to sell to the
original shareholders that name has been registered in register
book at the date that the Board of Director and or the persons
that the Board of Director appointed has the right to fix the
closing of register book, according to the ratio of shares by
shareholders and shall has right to book purchasing of         
capital increase in term of common share in ratio of 5 original
common shares to 1 capital increase in term of common shares
with price Bt12.50 each by giving the Board of Director and or
the persons that the Board of Director appointed has the right
to fix the closing of register book to stop the transfer action
of shares for the right of shareholders to book the purchasing
of capital increase common shares.

       - Agenda No. 7: To consider the transfer of legal reserve
amount Bt32,000,000 and premium on share capital amount
Bt493,800,000.00 to compensate for the accumulated loss of the
Company. And the accumulated loss of the Company will be as the
followings:

          - Retained loss as of January 1st, 2003       
(1,095,210,289.50)
          - Less legal reserve  32,000,000.00
          - Less premium share capital 498,800,000.00      
                                     530,800,000.00
          - Retained loss (564,410,289.50)

     - Agenda No. 8: To consider other matters (if any).

3. The closing date of the share register book for attending the
Extraordinary Shareholders' Meeting No. 1/2546 is on September
4, 2003 onward until the meeting is duly adjourned.


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

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

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