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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, December 1, 2003, Vol. 6, No. 237

                            Headlines

A U S T R A L I A

ADVANCED ENGINE: Discloses AGM Results
AMP LIMITED: Issues Proposed Demerger Prospectus
AMP LIMITED: Receives HHG PLC Global Offer Document
AMP LIMITED: UK Unit Releases Listing Particulars
ARISTOCRAT LEISURE: S&P Assigns BB Rating, Negative CreditWatch

COMMSOFT GROUP: Chairman Resigns, New Director Welcomed
MAYNE GROUP: Announces Development of New Laboratory for QML
QANTAS AIRWAYS: Patricia Cross Joins Board
QANTAS AIRWAYS: VA Becoming 21st Carrier on Kangaroo Route
SOUTHCORP LIMITED: Settles With ASIC Over Market Disclosure


C H I N A  &  H O N G K O N G

CHINA EVERBRIGHT: S&P Assigns 'Bpi' Public Info Rating
CHINA INTERNATIONAL: R&I Affirms BBB+ LT Credit Rating
LAI SUN: Dec 22 AGM Scheduled
PEARL TEXTILES: Winding Up Petition Pending
PO ON: Winding Up Petition to be Heard

PRIME WEALTH: Winding Up Petition Hearing Set
SINOPEC YANGZI: Xinhua Assigns BBB- (pi) Rating; Stable Rating
YUE YUEN: S$P Rates US$300M Convertible Bond Due 2008 'BBB-'


I N D O N E S I A

ASIA PULP: NY Court Grants Temporary Restraining Order


J A P A N

ASHIKAGA FINANCIAL: Refutes Reports of Looming Bailout
HEIWA REAL: JCR Assigns BBB+ to Shelf/Bonds
ISUZU MOTORS: Recalls Trucks, Buses; Reasons Unknown
MATSUSHITA ELECTRIC: To Scrap Seniority-based Pay Beginning 2004
NICHIMEN CORPORATION: Adopts New Retirement Scheme to Cut Costs

SUMITOMO MITSUI: Net Worth Slips to Negative; Needs Bailout
TOKATSU FOODS: JCR Affirms BBB- Senior Debts Rating


K O R E A

HYNIX SEMICONDUCTOR: Citigroup Makes Firm Offer for IC Unit
HYNIX SEMICONDUCTOR: Upgraded to 'CCC+', On CreditWatch Positive
HYUNDAI CONSTRUCTION: Proposed Capital Reduction Approved
LG CARD: Rumors of GE Takeover Swirl as Creditors Feud
LG CARD: Bidding War Brewing Among Foreign Banks, Says Source

LG CARD: Liquidity Problems Won't Affect LG-Caltex, Says S&P


M A L A Y S I A

ARUS MURNI: Proposed Acquisitions Completed
C.I. HOLDINGS: 25th AGM Fixed on Dec 22
DAI HWA: In the Midst of Proposal Formulation
EASTERN & ORIENTAL: Proposed Disposal Agreements Completed
GADANG HOLDINGS: Inks Plant Treatment MOU With China

INNOVEST BHD: Inks Proposed Acquisition Supplemental Agreement
L&M CORPORATION: CDRS Completion Pending
MBF HOLDINGS: Incurs Q303 Pre-tax Loss of RM10.2M
MYCOM BERHAD: Alliance Terminated as Advising Merchant Bank
MYCOM BHD: Proposed Restructuring Scheme Implementation Pending

NALURI BERHAD: Posts Level of Operations Proposal Status
OLYMPIA INDUSTRIES: AMBB Appointment as Corp Adviser Terminated
SOUTHERN PLASTIC: SC OKs Restructuring Scheme Time Extension
TENCO BERHAD: Unit WSB's Court Proceeding Postponed
WING TIEK: Posts Auditors' F/S Statement Qualification Report


P H I L I P P I N E S

MABUHAY VINYL: Court of Tax Appeals Affirms PHP100M Ruling
MANILA ELECTRIC: Plans to Raise US$200 Million via Bond Issue
MAYNILAD WATER: Court Voids Call on US$98M Bank Facility
PHILIPPINE NATIONAL: Recovers PHP52 Million in Latest Auction


S I N G A P O R E

NATSTEEL LIMITED: 3Q03 Earnings Down 90% Year-on-year


T H A I L A N D

CAPETRONIC INT'L: SET Transfers Listing to 'REHABCO' Sector
NAKORNTHAI STRIP: 2004 Holidays Same as SET's
RAIMON LAND: Changes Exercise Warrants Price, Ratio

     -  -  -  -  -  -  -  -

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A U S T R A L I A
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ADVANCED ENGINE: Discloses AGM Results
--------------------------------------
Advanced Engine Components Limited wishes to advise, pursuant to
Listing Rule 3.13.2, that all resolutions presented to members
at the 2003 Annual General Meeting held on November 28 have been
passed.

The results of proxies for each resolution were as follows:

                     For      Against   Abstain   Discretionary
1 Election of Director -
  Mr Graham Keys    695,380    10,000       0      3,500

2 Election of Director -
  Mr George Long    695,380    10,000       0      3,500

3 Increase of Directors
  Fees              443,000   262,380       0      3,500

4 Ratification of
   Share Issue     643,128    54,252     8,000    3,500


AMP LIMITED: Issues Proposed Demerger Prospectus
-------------------------------------------------
AMP Limited provided the following Proposed Demerger - Rights
Offer Prospectus details:

(a) Convertible Loan Notes If the global offer is completed
(based on assumed net proceeds of at least œ100 million) at the
time of listing of HHG the CLNs (the proposed terms of which are
set in the Explanatory Memorandum) will not be required and AMP
will be released from its standby commitment in relation to the
CLNs. For this reason the expected timing of subscription for
the first tranche of œ50 million ($123 million) of CLNs has been
delayed from the Effective Date until the outcome of the global
offer is known.

(b) Dilution The Explanatory Memorandum discloses that any
equity raising by HHG may result in the dilution of existing HHG
Shareholders. This would also affect AMP's interest in HHG of
approximately 15% of the issued capital. The diluting impact of
the global offer will be determined by the offer price and the
net amount to be raised, which is dependent on a number of
factors and will not be known until on or about 23 December 2003
following completion of the bookbuild.

Income Securities

The Explanatory Memorandum discloses that AMP does not consider
that an event of default has occurred, or will occur, under the
terms of the Income Securities and certain other debt securities
as a result of the announcement or implementation of the
Demerger. On 20 November 2003, AMP announced that the trustee
for its Income Securities, Perpetual Trustee Company Limited
(Perpetual), has advised that it plans to seek judicial advice
on the impact of AMP's Proposal to Demerge on its Income
Securities. The judicial advice process involves a court
application by Perpetual to seek procedural advice on any
actions it should take in relation to the Income Securities. It
is expected that the court application will be initiated before
the date of the Scheme Meeting. If a court were to ultimately
find that a default had occurred, the securities would be
repayable at face value. In the unlikely event that this was to
occur, AMP has both internal and external capacity to refinance
the Income Securities and the other debt securities to which
this issue relates, including existing cash resources and debt
facilities. AMP continues to believe that no default has
occurred, or will occur, as a result of the Demerger in respect
of the Income Securities and the other debt securities to which
this issue relates.

AMP's debt refinancing

The Explanatory Memorandum discloses that AMP intends to apply
approximately $600 million towards restructuring some of its
outstanding senior and subordinated debt prior to 31 December
2003 subject to achieving satisfactory pricing and maintaining
appropriate levels of liquidity. AMP has now decided to defer
this restructure to the first quarter of 2004.

Go to http://bankrupt.com/misc/AMP1201.pdffor a copy of the
Supplementary Document.


AMP LIMITED: Receives HHG PLC Global Offer Document
---------------------------------------------------
AMP Limited has provided HHG PLC's Global Offer of HHG Shares of
10 pence nominal value each Joint Sponsors, Joint Bookrunners
and Joint Lead Managers UBS Investment Bank and Cazenove and
Admission of up to œ50,000,000 Convertible Loan Notes due 2004.


AMP LIMITED: UK Unit Releases Listing Particulars
-------------------------------------------------
HHG PLC, the UK-based operations of AMP Limited, releases UK
Listing Particulars and confirms intention to raise at least
œ100 million of new capital at LSE listing.

HHG PLC on Friday released its UK Listing Particulars (UKLP)
following approval by the UK Listing Authority. The Listing
Particulars confirm HHG's intention to raise at least œ100
million (A$246 million) of new capital at listing on the London
Stock Exchange (LSE) on 23 December 2003 (Global Offer). HHG
will be listed if the proposed demerger of AMP Limited is
approved by shareholders at the Extraordinary General Meeting on
9 December 2003 and subsequently by the Federal Court of
Australia. HHG Chief Executive Officer, Roger Yates, said the
publication of the UK Listing Particulars represented an
important step in establishing HHG as an independent listed
entity.

"Listing on the LSE, in addition to the Australian Stock
Exchange, ensures the Group's businesses can be appropriately
viewed and measured against their peers in the context of their
home market. We have worked hard over the past few months to
prepare for independence and, with significant restructuring
complete, the foundations are now in place. On demerger from
AMP, HHG will be a major financial services group, with proforma
shareholders' net assets in excess of œ1.5 billion. The Group is
well positioned to benefit from a market and economic upturn,
with scope for growth from Henderson Global Investors and the
potential for capital release from Life Services in the longer-
term," said Mr Yates. Commenting on the timing, Mr Yates said
"the London listing is the natural time to undertake the capital
raising, eliminating the need to issue the proposed Convertible
Loan Notes (CLNs) and, therefore, reducing the cost and
providing a simpler capital structure for the Group going
forward".

The net proceeds of the raising will further strengthen HHG's
investment case with the initial œ50 million (A$123 million)
being used to acquire a controlling interest in Henderson at a
Group level. The Group for general working capital purposes will
hold the next œ50 million. Any additional proceeds raised in the
Global Offer will be applied by HHG to increase its holding in
Henderson.

Details of the Global Offer

   o The Global Offer will be open to institutional investors in
the United Kingdom, Australia and international markets
(excluding the United States, Canada and Japan).

   o UBS Investment Bank and Cazenove have been appointed as
Joint Sponsors, Joint Bookrunners and Joint Lead Managers of the
Global Offer.

   o UBS Investment Bank and Cazenove will determine the Offer
Price with the agreement of HHG. A number of factors will be
considered in deciding the Offer Price and basis of allocation,
including the level and nature of demand for new shares and the
objective of encouraging the development of an orderly after-
market in HHG shares.

   o At listing on the Australian Stock Exchange, HHG will have
approximately 1.8 billion shares on issue, including AMP's 15%
holding (before the Global Offer).

   o The Global Offer is expected to be underwritten by UBS
Investment Bank and Cazenove in accordance with the terms of the
underwriting agreement (refer Part 15 HHG UKLPs).

   o The expected timeline for demerger from AMP, HHG listing
and the Global Offer is as follows: AMP Limited Extraordinary
General Meeting 9 December Court Order approval of the demerger
Scheme of Arrangement 15 December Expected announcement of HHG
Offer Price On, or about 22 December HHG CDIs representing
shares expected to On, or about commence trading on the
Australian Stock Exchange 23 December HHG shares commence
trading on the LSE 23 December

Notes to editors

1. Overview of HHG PLC Upon demerger from AMP in Australia, HHG
PLC will comprise the following UK based operations:

   o Henderson Global Investors (Henderson): a top 10 UK-
domiciled investment manager with œ69 billion of assets under
management as at 30 June 2003. Henderson will be the long-term
strategic focus for the Group;

   o Life Services: the life and pensions books of Pearl,
National Provident Life, NPI Limited and London Life which are
effectively closed to new business;

   o Other Businesses: Towry Law, a leading financial advisory
group and an investment in Virgin Money, a 50/50 financial
services joint venture with the Virgin Group. At listing, HHG
PLC will be a major financial services group, with proforma
shareholders' net assets in excess of œ1.5 billion and minimal
external debt. Subject to shareholder and Court approval of the
demerger from AMP, HHG will be listed on the London and
Australian Stock Exchanges and will be eligible for inclusion in
both the FTSE 250 and ASX 100 indices.

2. Copies of HHG's Listing Particulars Copies of HHG's Listing
Particulars are available on the AMP Limited website
(www.ampgroup.com/demerger).

Important information The contents of this announcement, which
have been prepared by and are the sole responsibility of AMP
Limited, have been approved by UBS Limited solely for the
purposes of section 21(2)(b) of the Financial Services and
Markets Act 2000. UBS Limited is acting for HHG PLC in
connection with the Global Offer and no-one else and will not be
responsible to anyone other than HHG PLC for providing the
protections offered to clients of UBS Limited nor for providing
advice in relation to the Global Offer. This announcement is not
an offer to sell or the solicitation of an offer to buy or
acquire any securities in the United States or in any other
jurisdiction in which such an offer or solicitation is unlawful.
The securities referred to herein have not been, and will not
be, registered under the United States Securities Act of 1933,
as amended, and may not be offered or sold in the United States
absent registration or an exemption from registration. There
will be no public offering of any of the securities referred to
herein in the United States.


ARISTOCRAT LEISURE: S&P Assigns BB Rating, Negative CreditWatch
---------------------------------------------------------------
Standard & Poor's Ratings Services said on Friday that its 'BB'
ratings on Aristocrat Leisure Ltd. (Aristocrat) remain on
CreditWatch with negative implications (where they were first
placed on Oct. 17, 2003), following several recent
announcements by the company. These include:

   --An update of the company's profit guidance based on the
second-half trading outlook, which reiterated that earnings will
be down in Australia; and flagged earnings will be weaker in the
U.S., a key growth market for the group. Earnings also will be
lower in New Zealand, but ahead of last year in Japan and
several other smaller markets.

   --The commencement of a full review of the company's assets
and liabilities, with any adjustments resulting from this review
expected to be booked in the second half of fiscal 2003. The
company's statement that a new CEO will commence on Dec. 1,
2003, adds to the prospects that asset write-downs and some
business restructuring are likely to occur given such
adjustments usually happen when poor-performing companies
appoint new senior executives.

   --A revised agreement for one of Aristocrat's existing South
American contracts, which will result in an additional one-off
A$8 million in costs. Also, the company's adoption of new
revenue-recognition guidelines (announced with this revised
contract) will see Aristocrat reverse A$16.4 million in
previously recognized revenue, with this amount transferred to
deferred revenue.

   --The serving of legal proceedings against Aristocrat (by a
group of shareholders) relating to company announcements made
between Sept. 20, 2002, and May 26, 2003. The materiality of
this action is difficult to gauge as compensation and damages
are not specified.

While the latest earnings guidance highlighted concerns already
flagged by Standard & Poor's-namely the prospects of more
moderate growth rates in Australia, Aristocrat's modest
competitive position in the U.S., and higher working capital
requirements to fund growth in offshore markets-the other
announcements add to the uncertainty regarding Aristocrat's
current credit profile. Standard & Poor's will meet with
management in the near term to clarify issues raised in these
recent announcements, progress in turning around the U.S.
business, growth strategies in the U.S. and its other offshore
markets, and trends in the company's liquidity and financial
flexibility.


COMMSOFT GROUP: Chairman Resigns, New Director Welcomed
-------------------------------------------------------
The Directors of CommSoft Group advised on Friday, that at a
director's meeting it was resolved to accept Anthony Howard's
resignation as Chairman of the Board of the CommSoft Group. The
board extends its thanks to Mr. Howard for his guidance in
assisting the Company through a complex period of transition.

During his term of office Mr Howard oversaw the successful sale
of the Group's Intellectual Property to International Software
and Services Limited and the effectuation of a Deed of Company
Arrangement, all of which saved the current residual value in
CommSoft Group Limited. Jeff Zulman will assume the role of
Acting Chairman. CommSoft Group welcomes Jack Marcuson as a new
non-executive Director to the Board. An Initial Director's
Interest Notice and a Final Director's Interest Notice.


MAYNE GROUP: Announces Development of New Laboratory for QML
------------------------------------------------------------
Mayne Group Limited has announced that a new laboratory will be
developed for its Queensland pathology business, QML. The
development planning is expected to commence early in calendar
2004, with completion expected in June 2005.

The current facilities are unlikely to cope with future demand
and redevelopment of the existing site will be difficult due to
council zoning restrictions. The new facility will process a
greater number of episodes per day and it will be in a better
location to cater for the needs of more doctors. Mayne's Group
Managing Director and Chief Executive Officer, Mr Stuart
James, said that QML had performed above initial expectations
since being acquired in September 2002 and now that the
integration had been successfully completed it was time to focus
on its longer term requirements.

"We are very pleased with the progress of QML and a new purpose
built central facility will enable us to reduce operating costs
and improve overall efficiencies," Mr James said.

"QML has outgrown its existing laboratory which was not built
for the size of the current operation, and therefore the design
lacks the ability to optimize workflows or to economically cater
for further expansion," he said.

The total development costs are expected to be approximately
$27.5 million. Mayne is considering a number of financing
options, including a sale and leaseback transaction for the new
building. Under this scenario Mayne would expect a payback time
on the investment of less than four years.

"This is consistent with our strategy for building our
diagnostics businesses and deploying development capital where
it will deliver superior returns to our shareholders," Mr James
added.


QANTAS AIRWAYS: Patricia Cross Joins Board
------------------------------------------
The Chairman of Qantas, Margaret Jackson, announced Friday the
appointment of Patricia Cross as a non-executive Director of the
Board of Qantas Airways Limited.

Mrs Cross will fill a casual vacancy on the Qantas Board and
take up the position on 1 January, 2004.

"I am delighted that Patricia is joining the Qantas Board and I
am confident that she will further strengthen the diversity of
experience and corporate skill that is offered by the other
Board members," Ms Jackson said.

Mrs Cross is Chairman of Qantas Superannuation Limited and a
Director of Wesfarmers Limited.

She is also a Fellow of the Australian Institute of Company
Directors, a Fellow of the Australian Institute of Management, a
Fellow of the Finance and Treasury Association, and a Member of
Women Chiefs of Enterprise International. She recently received
a Centenary Medal for service to Australian society through the
finance industry.

Mrs Cross has previously served as Deputy Chairman of the
Transport Accident Commission (Victoria), a Member of the
Financial Sector Advisory Council, a Member of the Companies and
Securities Advisory Committee, Director of AMP Limited, Director
of Suncorp-Metway Limited, Member of the Merrill Lynch
Australasia Advisory Board, and an advisory member of the
Deloitte Touche Board of Partners. Mrs Cross has served on a
variety of not for profit boards, including the Murdoch
Childrens Research Institute, Opera Australia Capital Fund, the
Heide Museum of Modern Art, Director and Counselor of RMIT
University (Melbourne) and Governor of the American Chamber of
Commerce in Australia.

Mrs Cross holds a Bachelor of Science degree from Georgetown
University (Washington, DC) and, between 1981 and 1996, gained
extensive international experience in banking and finance. She
worked with Chase Manhattan Corporation, Banque Nationale de
Paris and then National Australia Bank, where her last position
was General Manager, Wholesale Banking. She was also a Member of
the National Australia Bank Executive Committee


QANTAS AIRWAYS: VA Becoming 21st Carrier on Kangaroo Route
----------------------------------------------------------
Qantas Airways Limited said Friday that Virgin Atlantic (VA)
would become the 21st airline to offer services between the
United Kingdom and Australia, following an air services
agreement reached between the United Kingdom and Hong Kong.

The Chief Executive Officer of Qantas, Geoff Dixon, said he
hoped that the positive outcome achieved in these talks would
lead the United Kingdom to grant Australia the rights to operate
between Shanghai and London, a route on which Virgin Atlantic
operates four times each week.

"China has already given Australia the rights to fly between
hanghai and London," Mr Dixon said.

"At a time when Qantas is being denied an opportunity to compete
with Virgin Atlantic over Shanghai, Virgin Atlantic has given
the impression that there is little competition on the Kangaroo
Route.

"In fact, the UK route is extremely competitive with around
twenty airlines operating services between the United Kingdom
and Australia including Air New Zealand, British Airways, Cathay
Pacific, Emirates, Japan Airlines, Lauda Air, Malaysia Airlines,
Qantas, Thai Airways, United Airlines and Singapore Airlines,
which owns 49 per cent of Virgin Atlantic.

"Qantas also competes daily with another 18 international
airlines that operate on other routes to and from Australia.

"This decision highlights once again that Australia has one of
the most liberal aviation environments in the world."


SOUTHCORP LIMITED: Settles With ASIC Over Market Disclosure
-----------------------------------------------------------
Mr David Knott, Chairman of the Australian Securities and
Investments Commission (ASIC), announced Thursday that orders
have been made in the Federal Court of Australia settling ASIC's
civil penalty proceedings against Southcorp Limited (Southcorp).

Under the settlement, Southcorp has consented to a declaration
being made that it has contravened the market disclosure
provisions of the Corporations Act.

Mr Justice Lindgren of the Federal Court ordered that Southcorp
pay a pecuniary penalty of $100,000 plus ASIC's costs.

"Today's court orders provide an effective and strong regulatory
outcome in an area that ASIC has highlighted over the past four
years," Mr Knott said.

"The selective release of information to analysts has the
capacity to undermine broad-based retail investor confidence in
the fairness of the market. Companies should generally ensure
that relevant information is provided to the whole market at the
same time.

"Southcorp's decision to settle with ASIC on the basis of
today's orders has resulted in a significant saving of taxpayer
resources that would otherwise have been required to fully
litigate this matter," Mr Knott said.

BACKGROUND

On 18 April 2002, Southcorp's then Executive General Manager of
Corporate Affairs, Mr Glen Cunningham, sent an email to selected
analysts containing information about the likely impact of the
poor 2000 vintage for premium wines on Southcorp's 2003 gross
profit.

After the email was sent to the analysts on 18 April 2002, until
the close of trading at 1.07pm on the following day, there was a
drop in the share price of 7 per cent and the volume of shares
traded was five times the average daily traded volume in the
previous two weeks.

The matter was investigated by ASIC following a referral by the
Australian Stock Exchange (ASX).

ASIC alleged that the information should have been disclosed to
the ASX under its Listing Rules and in accordance with the
Corporations Act, rather than to selected analysts.

In its statement of claim filed in the Federal Court of
Australia on 26 February 2003, ASIC sought a declaration that
Southcorp had contravened the continuous disclosure provisions
of the Corporations Act.

Under section 1317E of the Corporations Act, the Court has power
to make a declaration that the continuous disclosure provisions
of the Act have been breached. If a declaration is made, the
Court may impose a pecuniary penalty of up to $200,000. These
provisions took effect on 11 March 2002.

This brings an end to the proceedings, which were set down for
hearing in the Federal Court of Australia from 1 to 5 December
2003.


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C H I N A  &  H O N G K O N G
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CHINA EVERBRIGHT: S&P Assigns 'Bpi' Public Info Rating
------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday it had
assigned its 'Bpi' public information rating to China Everbright
Bank Co. Ltd (CEB). The rating reflects the bank's weak, though
improving, asset quality, low profitability, and inadequate
capitalization. It also reflects the bank's improved liquidity.

Beijing-based CEB was established in 1992 as a joint stock
commercial bank (JSCB). Its major shareholders are China
Everbright (Group) Co. Ltd. (24.2%), a state-owned enterprise,
and China Everbright Ltd. (21.4%), a Hong Kong-listed subsidiary
of China Everbright (Group) Co. Ltd. Because CEB is not listed,
its financial statements are prepared only in accordance with
Chinese accounting standards. The bank's disclosure, however, is
more transparent than that of other unlisted JSCBs that use only
domestic accounting standards.

Like China's other JSCBs, CEB experienced significant growth in
2002. This was reflected by its loans (including discounted
bills) and deposits, which grew by 31.6% and 33.5% respectively.
The bank continued to experience rapid expansion of its lending
in the first nine months of 2003, when customer loans rose by
31.5%. Although CEB's loan growth in period from 1999 to 2002
was slower than that of most of the other JSCBs, the bank, like
its peers, nevertheless faces increasing latent risk in its
loan book.

CEB's asset quality is still weak even though the amount of its
reported nonperforming loans (NPLs), as defined by China's new
5-category loan classification system, and its NPL ratio both
improved in 2002. The absolute amount of the bank's
nonperforming assets (NPAs), including NPLs and repossessed
assets, decreased by 9.9% year on year in 2002 to RMB29
billion, while its NPA ratio improved to 14.5% from 21.2% a year
earlier. The decrease in the ratio was achieved by a combination
of loan growth and a Chinese renminbi (RMB) 2.4 billion write-
off of NPLs. The bank disclosed a reduction in its NPLs in the
first nine months of 2003 of RMB 2.26 billion, or about 9.4% of
the outstanding amount at the end of 2002. However, no further
details are available.

In 2002, CEB's ratio of loan loss provisions to reported NPAs
stood at 40.3%, a coverage ratio that was about average in
comparison with the ratios of the other JSCBs. In view of the
difficulties of loan recovery and collateral liquidation, as
well as rapid changes in the value of collateral, higher levels
of provisions would be prudent. CEB's profitability remains weak
after using a substantial portion of its profits to write off
nonperforming assets in 2002. The bank's ratio of return on
average assets was a low 0.09%. In 2002, a 19.9% year-on-year
increase in net interest income and a 22.3% increase in
investment income were offset by a 75.8% increase in loan loss
provisions. CEB's capitalization is fairly weak in comparison
with that of the other JSCBs. In 2002, its ratio of adjusted
common equity to assets remained low at 3.8%. The bank needs to
improve its capitalization in view of the large amount of its
outstanding NPLs and its rapid asset growth.


CHINA INTERNATIONAL: R&I Affirms BBB+ LT Credit Rating
------------------------------------------------------
Rating and Investment Information, Inc. (R&I) has affirmed the
following ratings:

ISSUER: China International Trust & Investment Corp. (CITIC)
ISSUE: Foreign Currency Senior Long-term Credit Rating; Long-
term Bonds (2 series)

R&I RATING: BBB+ (Affirmed)
ISSUE: Commercial Paper Programme
R&I CP RATING: a-2 (Affirmed)

RATIONALE:

China International Trust & Investment Corp. (CITIC), which was
established in 1979, is an investment trust company wholly owned
by the Chinese government. The company still continues to take
advantage of its close relations with the central government in
areas such as business development. In addition to its broad
range of business in the financial sector, including domestic
commercial banking, securities and insurance and a commercial
bank in Hong Kong, CITIC also invests in non-finance businesses.

CITIC Industrial Bank, a 100% subsidiary, ranks seventh among
Chinese commercial banks in terms of asset size. Compared with
the four large state-owned commercial banks, the quality of
its assets and earning capability is better. Because assets have
expanded rapidly, however, the bank's capital adequacy ratio
measured by China's internal standards has decreased to below
6%. Unlike the four large banks, which can expect the government
to inject public funds, CITIC Industrial Bank will probably have
to procure equity capital through the group's own effort. In its
other financial businesses, the subsidiary commercial bank in
Hong Kong has stable earnings, and CITIC Securities, in which
the company has a 40% stake, has also maintained earnings even
during the stock price slump. Although CITIC had been working
towards establishment of a financial holding company intended to
improve synergy among its financial subsidiaries, CITIC
Holding Company, which was established in 2002, is presently
involved in development of product cross-selling, database
integration, and internal risk control at the domestic financial
subsidiaries.

In addition to finance, CITIC has positioned the
telecommunication business as a future strategic sector, and is
investing in areas such as satellites and optical fiber cable
networks. As competition among the major domestic
telecommunications companies continues, the key will be to
corner niche markets. The company has positioned subsidiaries in
other businesses such as natural resources as non-strategic
sectors, and continues to withdraw from unprofitable activities.
Although CITIC's consolidated equity-to-assets ratio has
declined to under 10%, this is due to the expansion of assets at
CITIC Industrial Bank. Since 1998, net income has remained at a
level of approximately 2.5 billion renminbi. CITIC continues to
reduce borrowings for non-financial businesses, particularly
foreign currency-denominated borrowings. CITIC Hong Kong, the
Hong Kong-based investment subsidiary, has also reduced its
debt. Based on these factors, R&I has affirmed its foreign
currency senior long-term credit rating at BBB+. Should CITIC
Industrial Bank further delay plans to bolster equity capital,
however, this may put adverse pressure on the rating. On
September 26, R&I affirmed the Foreign Currency Senior Long-term
Credit Rating of CITIC Hong Kong at BBB+.

R&I RATINGS:

ISSUER: China International Trust & Investment Corp. (CITIC)
Foreign Currency Senior Long-term Credit Rating: BBB+ (Affirmed)
ISSUE: Bonds Rated Issue Date Redemption Issue Amount (mn)
Samurai Bonds No. 7 (2005) Sep 19, 1996 Mar 18, 2005 Yen 10,000
Samurai Bonds No. 8 (2016) Sep 19, 1996 Sep 19, 2016 Yen 10,000
R&I RATING: BBB+ (Affirmed)

ISSUE: Commercial Paper Programme
ISSUE LIMIT: 15,000 million yen
R&I CP RATING: a-2 (Affirmed)


LAI SUN: Dec 22 AGM Scheduled
-----------------------------
Notice is hereby given that the Annual General Meeting of the
Members of Lai Sun Garment International Limited will be held at
The Chater Room I, Function Room Level (B1), The Ritz-Carlton
Hong Kong, 3 Connaught Road, Central, Hong Kong on Monday, 22nd
December, 2003 at 11:15 a.m. for the following purposes:

1. To receive and consider the Audited Financial Statements and
the Reports of the Directors and of the Auditors for the year
ended 31st July, 2003;

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

3. To appoint auditors and to authorize the directors to fix
their remuneration; and

4. As special business, to consider and, if thought fit, pass
with or without amendments, the following resolution as an
Ordinary Resolution:

"THAT:

(a) subject to paragraph (c) of this Resolution, the exercise by
the directors during the Relevant Period (as hereinafter
defined) of all the powers of the Company to issue, allot and
deal with additional shares in the Company, and to make or grant
offers, agreements and options (including warrants, bonds,
debentures, notes and any securities which carry rights to
subscribe for or are convertible into shares in the Company)
which would or might require the exercise of such power be and
is hereby generally and unconditionally approved;

(b) the approval in paragraph (a) of this Resolution shall
authorize the directors during the Relevant Period to make or
grant offers, agreements and options (including warrants, bonds,
debentures, notes and any securities which carry rights to
subscribe for or are convertible into shares in the Company)
which would or might require the exercise of such power after
the end of the Relevant Period;

(c) 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
pursuant to the approval in paragraph (a) of this Resolution,
otherwise than pursuant to (i) a Rights Issue (as hereinafter
defined); or (ii) an issue of shares in the Company upon the
exercise of rights of subscription or conversion under the terms
of any of the securities which are convertible into
shares of the Company; or (iii) an issue of shares in the
Company as scrip dividends pursuant to the Articles of
Association of the Company from time to time; or (iv)
an issue of shares in the Company under any option scheme or
similar arrangement for the grant or issue to employees of the
Company and/or any of its subsidiaries of shares in the Company
or rights to acquire shares in the Company, shall not exceed 20%
of the aggregate nominal amount of the issued share capital of
the Company as at the date of this Resolution, and the said
approval shall be limited accordingly; and

(d) for the purposes of this Resolution:

"Relevant Period" means the period from the passing of this
Resolution until whichever is the earlier of:

(i) the conclusion of the next Annual General Meeting of the
Company;

(ii) the revocation or variation of the authority given under
this Resolution by an ordinary resolution of the shareholders of
the Company in general meeting; or

(iii) the expiration of the period within which the next Annual
General Meeting of the Company is required by law to be held;
and

"Rights Issue" means an offer of shares of the Company open for
a period fixed by the directors to the holders of shares, whose
names appear on the Register of Members of the Company on a
fixed record date in proportion to their then holdings
of such shares as at that date (subject to such exclusions or
other arrangements as the directors 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 applicable to the Company)."


PEARL TEXTILES: Winding Up Petition Pending
-------------------------------------------
Pearl Textiles Far East Limited is facing a winding up petition,
which is slated to be heard before the High Court of Hong Kong
on December 3, 2003 at 10:00 in the morning.

The petition was filed on October 17, 2003 by Alessandro
Silvestroni and Wang Shao Hua both of 1203, Peninsula Square, 18
Sung On Street, Hung Hom, Hong Kong.


PO ON: Winding Up Petition to be Heard
--------------------------------------
The petition to wind up Po On Construction Crystal Treasure
Limited is set for hearing before the High Court of Hong Kong on
December 3, 2003 at 10:00 in the morning,

The petition was filed with the court on September 16, 2003 by
Wah Luen Trading Company of Flat D, 12th Floor, Block 6, Man On
Shan, 600 Sai Sha Road, New Territories, Hong Kong.


PRIME WEALTH: Winding Up Petition Hearing Set
---------------------------------------------
The petition to wind up Prime Wealth Enterprises Limited is
scheduled for hearing before the High Court of Hong Kong on
December 24, 2003 at 9:30 in the morning.

The petition was filed with the court on November 5, 2003 by
Bank of China (Hong Kong) Limited of 14/F., Bank of China Tower,
No. 1 Garden Road, Central, Hong Kong.


SINOPEC YANGZI: Xinhua Assigns BBB- (pi) Rating; Stable Rating
--------------------------------------------------------------

Xinhua Far East China Credit Ratings (Xinhua Far East), the
pioneering undertaking to rank credit risk among Chinese
corporations using international standards, assigned BBB- (pi)
long-term credit rating to Sinopec Yangzi Petrochemical Co Ltd.
The rating outlook is stable.

The long-term credit rating of BBB- (pi) for YPC is based on the
fact that the Company's core product, polyester material, has a
vigorous demand and low production capacity in China, giving the
product extensive market potential. Being a subsidiary of China
Petroleum & Chemical Corp, YPC obtains the Group's support both
in finance and upstream and downstream business. As its major
customers are the Group's downstream entities, its sales and
operating cashflow are quite predictable that bolsters debt
service.

However, the following factors constrain the Company's rating:

    * In the next five years, production expansion with more PTA
(purified terephthalic acid) facilities and tariff reduction on
imported PTA will intensify competition in China, and give
dampening pressure on PTA's price;

    * The Company's other products are also exposed to price
pressure, resulting from the rise in domestic supply and more
competitive import products;

    * The inherent volatility in petrochemical market leads to
fluctuating profit margin.

Given Sinopec's business support and the Company's expected
production expansion that will drive turnover growth, the rating
outlook for YPC is stable.

The Company is principally engaged in oil refining and
production of hydrocarbon derivatives, with four product
categories of polyester material, polyolefinic plastics, base
chemical materials and refined oil. The Company now owns 650,000
tons/year ethylene facilities, 8 million tons/year normal
pressure reduction and processing capacity of crude oil, as well
as facilities to combine 950,000 tons/year of aromatic
hydrocarbons. In 2002, YPC is one of the China's largest
producer of PTA, with annual production capacity of 720,00
tons and sales made highest contribution to the Company's
turnover.

YPC is a large cap company ranking the 15th in the Xinhua/FTSE
China A 200 Index. As of November 20, 2003, the total market cap
of the constituent accounted for RMB 20.5 billion yuan (USD 2.53
billion) with the investible market cap of RMB 4.11 billion yuan
(US$507 million).


YUE YUEN: S$P Rates US$300M Convertible Bond Due 2008 'BBB-'
------------------------------------------------------------
Standard & Poor's Ratings Services said Friday that it had
assigned its 'BBB-' issue rating to Yue Yuen Industrial
(Holdings) Ltd.'s (Yue Yuen) US$300 million zero coupon
convertible bond due 2008.

The bond will rank as a direct, unsubordinated, and unsecured
obligation of the company. The bond has a US$50 million over
allotment option. Proceeds from the issue will be used to
refinance existing debt and for potential mergers and
acquisitions. Bondholders have an option to sell on the second
anniversary of the issue date at 99.5% of its face value.

Yue Yuen is the world's largest contract manufacturer of branded
athletic and casual shoes. The company supplies to brands such
as Nike, Reebok, and Adidas. Yue Yuen has a worldwide market
share of approximately 17%. Most of its shoes are produced in
low cost centers in southern China for export to the U.S. and
Europe. Yue Yuen is controlled by Taiwan's Pou Chen Corp., which
has a 49.8% stake in the company, and the Tsai family, which has
a 19.9% interest.

The rating reflects Yue Yuen's leading market position, low cost
operations-as a result of economies of scale and low cost
production bases-healthy internal cash generation, and strong
financial flexibility. These strengths are partially offset by
increasing pressure on pricing from Yue Yuen's customers and
high customer concentration. Standard & Poor's also recognize
the market and operational challenges Yue Yuen faces in
diversifying its product base. The company recently purchased a
ladies footwear and sportswear manufacturer, and is also seeking
to expand the number of its retail outlets in mainland China.

Yue Yuen's total borrowings amounted to US$695.8 million at the
end of March 2003. Cash on hand totaled US$398.6 million. The
company made a net profit of US$87.4 million in the three months
ended June 2003, compared with US$63 million over the
corresponding period in 2002. Turnover rose 25.7% to US$665.2
million in the three months ended June 2003, compared with the
corresponding period in 2002.


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


ASIA PULP: NY Court Grants Temporary Restraining Order
------------------------------------------------------
New York State Supreme Court Justice Helen Freedman on Tuesday
ordered Asia Pulp & Paper Co. to cease its efforts to get an
Indonesian court to invalidate $350 million in bonds issued by
one of APP's biggest subsidiaries in the mid-1990s.

The temporary restraining order sets the stage for an
international legal battle that is likely to highlight the
complaints many foreign investors have about Indonesia's legal
system. APP's effort to invalidate bonds of a Jakarta-listed
subsidiary, PT Indah Kiat Pulp & Paper, follows in the footsteps
of several other Indonesian companies, which have used a nearly
identical legal strategy to keep their foreign creditors at bay.

According to Freedman, "APP's attempt to invalidate the bonds in
Indonesia appeared to violate the principles set out when the
two bonds were issued, which said disputes should be settled
under New York law."

The court ordered APP to appear at the court on Dec. 11 to
explain its action, and ordered an immediate halt to APP's
efforts to pursue its legal claims in Indonesia.

APP's Indonesian lawyer said the company hadn't been informed
about the New York court order. APP has the right to appeal to
New York appellate courts and, ultimately, to the state's Court
of Appeals. APP has previously said it would defend its
restructuring plans from legal attacks by disgruntled creditors.


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


ASHIKAGA FINANCIAL: Refutes Reports of Looming Bailout
------------------------------------------------------
Regional bank Ashikaga Financial Group <8352.T> denied last week
it is in need of a government bailout, dismissing recent reports
as pure speculation.

Rumors of an impending government intervention surfaced after an
unnamed source squealed that the group's net worth had plunged
into negative territory as of the end of March.  The source
added the government is allegedly considering injecting public
money into Ashikaga Bank, the group's core unit.

A senior FSA official told Reuters the bank had not yet formally
given the regulatory body its half-year results, whose
publication was postponed from Tuesday.  The source said the FSA
must first see those results to gauge the bank's financial
health as of the end of September before authorities can decide
what to do next.

The group informed Reuters it is still compiling results for the
first half to September 30 and would disclose them as soon as
they were finalized.  Ashikaga is located in Tochigi prefecture
north of Tokyo.


HEIWA REAL: JCR Assigns BBB+ to Shelf/Bonds
-------------------------------------------
Japan Credit Rating Agency (JCR) on Thursday assigned a
preliminary BBB+ and a BBB+ rating to the shelf registration and
bonds to be issued under the shelf registration of Heiwa Real
Estate Co., Ltd. (securities code no.: 8803).

Shelf Registration:

Maximum: Y10 billion
Valid: two years effective from August 16, 2003

Issue / Amount(bn) / Issue Date / Due Date / Coupon

bonds no.4 / Y10 / Dec. 11, 2003 / Dec. 11, 2007 / 1.76%

Covenants: Negative Pledge & Maintenance of Net Assets
Commissioned Company: No

RATIONALE

Heiwa Real Estate is a real estate company with leasing business
being the primary business. It has been investing in office and
commercial buildings in order to change its earnings structure
that is dependent on securities industry. The investments have
raised the interest-bearing debt. Stable cash flows will be
generated after start-up of new leasing properties, however. JCR
will pay close attention to the future developments as to the
going of the Osaka Stock Exchange building, which is scheduled
to be completed in November 2004, given the lackluster demand
for offices in Osaka.


ISUZU MOTORS: Recalls Trucks, Buses; Reasons Unknown
----------------------------------------------------
Two of Japan's carmakers will recall thousands of vehicles for
free repairs, according to Kyodo News, which did not state the
reason for the move.

Isuzu Motors, the report said, will recall a total of 48,078
Giga and Forward trucks as well as Gala buses made between
October 2, 1996 and January 26, 2000.  Mazda, the other carmaker
that announced a similar move, will recall 245 RX7 and Infini
RX7 sports cars manufactured between October 19, 1991 and August
26, 2002.  The report did not state the duration of the recall.


MATSUSHITA ELECTRIC: To Scrap Seniority-based Pay Beginning 2004
----------------------------------------------------------------
Beginning April next year, domestic employees of Matsushita
Electric Industrial Co. will be paid according to a merit
system, instead of the existing seniority-based scheme.

The new system, according to an unnamed company official
interviewed by Kyodo News International, has been agreed upon by
management and labor and is meant to cut personnel costs amid
intensifying competition in the electronics industry.  The
result-oriented pay system is not actually new, as it has been
in use for the 10,000 managerial employees since 1999.  Its
adoption for the entire domestic workforce will be the first
time, however.

"Matsushita's current pay structure breaks salaries down into
three components -- a base component that rises automatically
with seniority until age 45, a rank-related component that is
linked to employee grade, and a merit component that is tied to
job performance," Reuters explains.  "Under the current formula,
the base and rank-related components each account for 30 percent
of salary, while the merit component accounts for 40 percent."

"The new formula will eliminate the base component and raise the
merit component to 70 percent of the entire salary," Reuters
said, citing the unnamed company official.


NICHIMEN CORPORATION: Adopts New Retirement Scheme to Cut Costs
---------------------------------------------------------------
In an effort to reduce financial burdens, trading house Nichimen
Corp. is introducing a new system in granting retirement
benefits for its employees, according to Kyodo News.

Instead of paying retirement grants in lump sum, the company
will pay them in installments as part of monthly salaries.  It
has also adopted a 401(k)-style pension plan, beginning
September 30, to replace the existing retirement annuity system.

Nichimen is a unit of Nissho Iwai-Nichimen Holdings Corp.


SUMITOMO MITSUI: Net Worth Slips to Negative; Needs Bailout
-----------------------------------------------------------
Recently established Sumitomo Mitsui Construction Co. is in need
of another bank bailout after sliding into negative net worth in
the first half, Japan Times said Friday.

The company reported on Thursday a net loss of JPY43.18 million
for April-September, mostly due to a writedown on the value of
its assets, including real estate properties held for commercial
purpose.  It also bared a 12.6 percent slide in revenues, which
amounted to only JPY249.36 billion.  It blamed the downturn in
public works projects.

"As a result, the company fell into negative net worth, in which
liabilities exceed the firm's assets.  This theoretically means
lenders and shareholders cannot recoup their loans and
investments. To pull itself out of its financial hole, the
company said it will seek a capital injection through the
issuance of the preferred shares by the end of the current
fiscal year in March," Japan Times said.

Company officials told the paper the firm plans to issue the
preferred shares through a third-party allotment to its main
lenders.  The construction firm is believed to be in talks with
Sumitomo Mitsui Bank and other main lenders, the paper added.

Established in April, the company is the result of the merger of
Mitsui Construction Co. and Sumitomo Construction Co.  According
to company executives, excluding one-time factors, the company
is earning in its core business, and the financial assistance is
necessary only as the result of front-loading the clearance of
financial issues, including the writedown of its properties.

"According to the accounting rules, from fiscal 2005, companies
are required to write down their properties when their market
value is deemed considerably lower than that in the book. The
amount of writedown is booked as a loss for the period," Japan
Times explained.


TOKATSU FOODS: JCR Affirms BBB- Senior Debts Rating
---------------------------------------------------
Japan Credit Rating Agency (JCR) has affirmed the BBB- rating on
senior debts of Tokatsu Foods Co., Ltd. (securities code no.:
2909).

Tokatsu Foods produces and sells precooked foods to convenience
stores (CVSs). Majority of the sales are made towards
FamilyMart. The startup cost incurred for new plant in Kyushu
decreased the operating profit sharply in fiscal 2002. The
operations at the plant are going well now. The new plant is
expected to contribute to boosting the earnings of Tokatsu
Foods. It acquired vendor for FamilyMart in September this year
and then made inroads into Tohoku region. Given the poor
performance, however, JCR will pay attention to the future
developments as to how Tokatsu Foods can improve the earnings.


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


HYNIX SEMICONDUCTOR: Citigroup Makes Firm Offer for IC Unit
-----------------------------------------------------------
Negotiations between Hynix Semiconductor Inc. and a venture
capital fund run by Citigroup appear to be progressing to the
next level after the latter reportedly offered KRW520 billion
for company's non-core system integrated circuit (IC) business.

"The fund made a 520 billion won offer and also requested that
Hynix creditors take on 200 billion won in loans the operations
owe to them," a source told Reuters late last week.

The unit, which accounts for one-fifths of annual revenues, has
been on the auction block for some time now, but the group has
been unsuccessful in unloading it due to pricing differences,
the size of the assets and a lack of investment in the business,
Reuters said.

The Reuters source said creditors will meet shortly to discuss
the proposal and to consult with Hynix over the offer, which is
far below the US$600 million value Hynix put on the unit.

"The offer may be disappointing to Hynix and creditors, but I
think other factors need to be considered such as inflow of cash
from the sale and a lack of investment," Kim Young-joon, an
analyst at Kyobo Securities, told Reuters in an interview.

If sold, it would be the second non-core assets to be divested
this year by Hynix, which recently returned to profit after
bailouts by creditors, and leave it as a pure memory chip maker,
the report added.

"The IC operations are divided into a contract chip making unit
and a division that makes chips for flat panel displays and
optical image sensors for digital cameras and camera phones.
The contract chip-making unit competes with Taiwan Semiconductor
Manufacturing Co. Ltd and United Microelectronics Corp., also of
Taiwan, while the other unit goes up against local rival Samsung
Electronics Co. Ltd and Japan's Seiko-Epson Corp.," Reuters
said.

In related a development, Standard & Poor's upgraded last Friday
Hynix's long-term credit rating to "CCC+" from "selective
default," with a positive outlook.  The rating agency cited the
asset sale efforts and a better performance of its core
business.

Hynix recently booked a KRW133.9 billion profit, its first in
six quarters.  A rising demand for memory chips made this
possible, according to the company.  Hynix is expected to post a
436.2 billion won profit in the fourth quarter versus a loss of
917.2 billion won a year earlier, according to 10 forecasts
compiled by Reuters Research.

Hynix owes creditors some KRW3.3 trillion.  It recently
underwent a multi-billion dollar bailout, which included debt-
for-equity swaps and debt rollovers, Reuters said.


HYNIX SEMICONDUCTOR: Upgraded to 'CCC+', On CreditWatch Positive
----------------------------------------------------------------
Standard & Poor's Ratings Services raised last Friday its long-
term corporate credit rating on Hynix Semiconductor Inc. to
'CCC+' from 'SD', reflecting the company's successful completion
of a debt reorganization plan and improving performance in its
core memory chip business.  At the same time, the long-term
ratings on Hynix Semiconductor Manufacturing America Inc. were
raised to 'CCC+' from 'CC'.

The long-term ratings on both companies were also placed on
CreditWatch with positive implications, following the
announcement on Nov. 26, 2003, that Citigroup had made an offer
to buy Hynix's System SI business, the company's remaining non-
memory chip division. Media reports have estimated the deal to
be worth about $500 million to Hynix.

"Hynix has emerged successfully from its debt reorganization
plan and is focusing on its core memory business, which has
recently benefited from favorable industry conditions," said
Standard & Poor's credit analyst Eun Jin Kim.

"Nevertheless, Hynix's capital investment requirements are high
and need to be increased in the medium term to maintain
competitiveness against companies such as Samsung Electronics
Co. Ltd. and Micron Tech.," Ms. Kim added.

In resolving the CreditWatch status, Standard and Poor's will
take into account potential liquidity gains from the successful
sale of Hynix's non-memory business. Any upgrade is likely to be
within one notch.

For more information, contact Eun Jin Kim (Tokyo) at
(81) 3-3593-8728 (Phone).


HYUNDAI CONSTRUCTION: Proposed Capital Reduction Approved
---------------------------------------------------------
Majority shareholders of Hyundai Engineering & Construction Co.
(HEC) (KSE:000720) approved the proposed capital reduction of
the company, amid threats by the minority to file a lawsuit to
nullify the transaction.

More than 82% of the shareholders backed the proposal that will
reduce the outstanding shares from 555.5 million to 55.95
million by swapping 9.05 existing shares for 1 new HEC stock.
This will reduce capital to KRW279.8 billion (US$233 million)
from KRW2.53 trillion, Asia Pulse said.

Saddled by debt, the company is considered financially unstable,
as losses have now eroded 70% of its capital.  Lee Ji-song,
president and CEO of HEC, said capital reduction was inevitable
to help improve the company's financial soundness and avoid its
degradation into supervised issues.

"The capital reduction will help pave the ground for Hyundai
Engineering & Construction's management normalization," Lee said
at the shareholders meeting.  "In addition to improved financial
soundness, it will facilitate mergers and acquisitions or
attraction of fresh investments."

Minority shareholders strongly protested the capital reduction,
arguing that responsibility for the company's financial troubles
should not be borne by them.

"The latest capital reduction, following a previous one in 2001,
can hardly be accepted.  We minority shareholders will file a
lawsuit to nullify the capital reduction," a minority
shareholder told Asia Pulse.


LG CARD: Rumors of GE Takeover Swirl as Creditors Feud
------------------------------------------------------
GE Capital is rumored to be in talks with LG Card, South Korea's
largest credit card company currently on the brink of a
financial collapse.

According to Reuters, investors pushed LG shares 7.65% up in
late trading Friday, way above the broader market gain of 1.09%.
The frenzied trading was spurred by talks that GE Capital was
about to make a move on LG and that creditor banks would not act
on their threat to trim down the rescue package they had earlier
promised.  A spokesman for LG Card reached by Reuters refused to
confirm the rumor, while the U.S. company was not immediately
available for comment.

Last Friday, banks that had pledged to pool together up to
US$1.7 billion in emergency funding threatened to reconsider the
idea unless non-banking institutions agreed to roll over LG's
loans.  A day earlier, LG Card repaid KRW302.5 billion in
matured notes owed to Kyobo Life Insurance, despite opposition
from the creditor banks, which wanted Kyobo Life to freeze the
repayment to support their aid package.

"We're even considering reducing loans from the two trillion won
by the amount LG Card repaid to Kyobo," Kim Kil-in, a spokesman
for Woori Bank, the main creditor of LG Card; told Reuters.
"We're concerned that other non-bank creditors can follow suit.
In that case, the two trillion won we provide will quickly run
out."

South Korea's credit card debt at the end of August stood at
78.43 trillion won ($65.25 billion), about 14 percent of its
annual economic output. Payments are overdue on about 11 percent
of the debt, according to Reuters.

LG Card, whose 14 million customers account for almost a third
of South Korea's population, is in the process of a
restructuring that includes reducing its workforce by a quarter.
It has chosen Morgan Stanley as a financial adviser for a
planned stake sale and has said it could give up management
control if required, Reuters said.


LG CARD: Bidding War Brewing Among Foreign Banks, Says Source
-------------------------------------------------------------
A sale of LG Card is reportedly shaping up, with preliminary
deals likely to be completed by January next year, Asia Pulse
said Friday.

"A considerable number of foreign investors have expressed
intention to take over LG Card," an unnamed creditor bank
official told the news agency. "If negotiations among LG Card,
creditors and prospective buyers go smoothly, a memorandum of
understanding may be signed around January next year."

Foreign companies believed to be interested in LG Card include
General Electric (GE), Citigroup, HSBC and Newbridge Capital, he
said.

In a separate interview, the chief executive officer of GE Korea
didn't dismiss the possibility. "GE is weighing a plan to
acquire troubled Korean credit card companies," said Lee Chae-
wook told Asia Pulse.

Market analysts say Citigroup and HSBC should be interested in
LG Card since a takeover fits their strategy to expand their
business areas in South Korea.  LG Card is South Korea's largest
credit card company.


LG CARD: Liquidity Problems Won't Affect LG-Caltex, Says S&P
------------------------------------------------------------
Standard & Poor's Ratings Services said Thursday that LG-Caltex
Oil Corp. (BBB/Stable/--) will not be affected by the recent
liquidity problems experienced by LG Card Co. The company has
confirmed that it will not provide any financial support to the
credit card company. LG-Caltex, which is jointly owned by the LG
group and ChevronTexaco Corp., does not have any operational or
financial ties with LG Card.

LG Card fell into financial difficulties and received a Korean
W2 trillion bailout from its creditors on Nov. 24, 2003.


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


ARUS MURNI: Proposed Acquisitions Completed
-------------------------------------------
Further to Arus Murni Corporation Berhad's announcement dated
29/08/03, the Company is pleased to announce that the Company
has completed the acquisitions of Jernih Makmur Sdn Bhd (JMSB)
and Consistent Harvest Sdn Bhd (CHSB) and has taken over the
respective businesses of JMSB and CHSB.

It is expected that the revenue generated from the said
businesses of JMSB and CHSB will be sufficient to provide the
Company with an adequate level of operation to satisfy the
minimum requirements of PN10/2001 in the near future.


C.I. HOLDINGS: 25th AGM Fixed on Dec 22
--------------------------------------
Notice is hereby given that the Twenty-Fifth Annual General
Meeting of C.I. Holdings Berhad will be held at Bilik Perdana,
Level 3, Wisma KFC, No. 17, Jalan Sultan Ismail, 50250 Kuala
Lumpur on Monday, 22 December 2003 at 10:00 a.m. for the purpose
of transacting the following business:

AGENDA

ORDINARY BUSINESS

1. To receive the Audited Financial Statements for the year
ended 30 June 2003 together with the Directors' and Auditors'
Reports thereon.  Resolution 1

2. To approve the payment of Directors' fees for the year ended
30 June 2003.  Resolution 2

3. To re-elect the following Director who is retiring in
accordance with Article 92 of the Company's Articles of
Association:

i. Mr. Chan Peng Chiw  Resolution 3

4. To re-elect the following Directors who are retiring in
accordance with Article 98 of the Company's Articles of
Association:

   i.   Maj Gen (R) Dato' Mohamed Isa Bin Che Kak  Resolution 4
   ii.  Erwin Selvarajah A/L Peter Selvarajah  Resolution 5
   iii. Datuk Syed Ali Bin Tan Sri Syed Abbas Alhabshee
        Resolution 6
   iv. Dato' Azmeer Bin Rashid Resolution 7

5. To re-appoint Messrs. Ernst & Young, the retiring Auditors,
and to authorize the Directors to fix their remuneration.
Resolution 8

SPECIAL BUSINESS

6. To consider and, if thought fit, pass with or without
modifications, the following Ordinary Resolution:

Ordinary Resolution
ú Authority to Directors to Issue Shares

"THAT pursuant to Section 132D of the Companies Act, 1965, the
Directors be and are hereby empowered to issue shares in the
Company, at any time and upon such terms and conditions and for
such purposes as the Directors may, in their absolute
discretion, deem fit, provided that the aggregate number of
shares issued pursuant to this resolution in any one financial
year does not exceed 10% of the issued capital of the Company
for the time being and that the Directors be and are also
empowered to obtain the approval for the listing of and
quotation for the additional shares so issued on the Kuala
Lumpur Stock Exchange and that such authority shall continue to
be in force until the conclusion of the next Annual General
Meeting of the Company."             Resolution 9

ANY OTHER BUSINESS

7. To transact any other business of the Company of which due
notice shall have been given in accordance with the Company's
Articles of Association and the Companies Act, 1965.

BY ORDER OF THE BOARD
C.I. HOLDINGS BERHAD

Lim Phooi Kee (MIA 2759)
Lee Peng Khoon (MIA 2251)
Company Secretaries

Kuala Lumpur
Date: 28 November 2003

NOTES:
1. A member of the Company who is entitled to attend and vote at
the Meeting is entitled to appoint one or more than one proxy to
attend and vote in his(her) stead. A proxy need not be a member
of the Company and the provisions of Section 149(1)(b) of the
Companies Act, 1965 shall not apply to the Company.

2. The instrument appointing a proxy shall be in writing under
the hands of the appointor or of his(her) attorney duly
authorized in writing or if the appointor is a corporation
either under its common seal or under the hand of its officer or
its duly authorized attorney.

3. Where a member appoints two or more proxies, he(she) shall
specify the proportion of his shareholdings to be represented by
each proxy.

4. The instrument appointing a proxy must be deposited at the
Company's registered office at 10th Floor, Tower Block, Kompleks
Antarabangsa, Jalan Sultan Ismail, 50250 Kuala Lumpur not less
than forty-eight (48) hours before the time for holding the
meeting or adjourned meeting.


Explanatory Notes on Special Business

Authority to Directors to Issue Shares

In line with the Company's plan for expansion / diversification,
the Company is actively looking into prospective areas so as to
broaden the operating base and earnings potential of the
Company. As the expansion / diversification may involve the
issue of new shares, the Directors, under present circumstances,
would have to call for a general meeting to approve the issue of
new shares even though the number involved is less than 10% of
the issued share capital.

In order to avoid any delay and costs involved in convening a
general meeting to approve such issue of shares, it is proposed
that the Directors be empowered to issue shares in the Company
up to an amount not exceeding in total 10% of the issued share
capital of the Company for the time being for such purposes as
they consider would be in the interests of the Company. This
authority, unless revoked or varied at a general meeting, will
expire at the next Annual General Meeting of the Company.


DAI HWA: In the Midst of Proposal Formulation
---------------------------------------------
Pursuant to Dai Hwa Holdings (M) Berhad's Initial Announcement
made on 27 August 2003 in respect of the position of the Company
having inadequate level of operations by virtue of Paragraph
2.1(b) of PN 10, the Company hereby wishes to announce that it
is still in the process of formulating the proposal required to
ensure adequate level of operations and the Company shall advise
the Exchange on the said proposal in due course.


EASTERN & ORIENTAL: Proposed Disposal Agreements Completed
----------------------------------------------------------
Further to the announcements dated 28 May 2002, 2 September
2002, 29 November 2002, 3 April 2003 and 30 September 2003 in
relation to the Proposed Disposals; Proposed Debt Settlement;
and Proposed Debt Disposal.

Alliance Merchant Bank Berhad on behalf of Eastern & Oriental
Berhad, wishes to announce on behalf of the Board of Directors
of EOB that the following transactions have been completed on 24
November 2003 pursuant to the terms of the respective share sale
agreements and sale and purchase agreement dated 28 May 2002 as
amended by the relevant supplemental agreements:

   a) the disposal of Ambangan Puri Sdn Bhd (APSB) (APSB
Disposal) for RM32,573,306;

   b) the disposal of Regal Alliance Sdn Bhd (RASB) (RASB
Disposal) for RM35,988,769;

   c) the disposal of E & O Properties Sdn Bhd (EOP) (EOP
Disposal) for RM8,690,013; and

   d) the disposal by True Vitality Sdn Bhd (TVSB) of adjoining
parcels of land measuring approximately 4.838 acres held under
Lots 123, 130 and 131, Section 63, Town and District of Kuala
Lumpur (TVSB Land) for RM90,000,000 (TVSB Land Disposal).

The consideration for the RASB Disposal has been adjusted from
RM26,988,769 to RM35,988,769 after adjusting for total dividends
of up to RM58.2 million as opposed to RM67.2 million stated in
the Circular to shareholders dated 15 September 2003.

The consideration for the APSB Disposal has been adjusted from
RM29,573,306 to RM32,573,306 after adjusting for total dividends
of up to RM18.0 million instead of RM21.0 million as stated in
the Circular to Shareholders dated 15 September 2003.

The Debt Settlement and the Debt Disposal involving the
settlement and acquisition by E&O Property Development Bhd
(formerly known as Kamunting Corporation Bhd) ("EOPD") of the
inter-company debts due to EOB by APSB, its subsidiary Seventy
Damansara Sdn Bhd (formerly known as Beta Auto Sdn Bhd) (BASB),
EOP and its subsidiaries were also completed on 24 November
2003.

Pursuant to the Debt Settlement, EOPD has issued RM116,000,000
4-year secured Bonds with 116,000,000 detachable Warrants on 24
November 2003 to EOB.

The 116,000,000 Warrants together with the new EOPD shares of
328,385,150 shares of RM0.50 each issued pursuant to the TVSB
Land Disposal and the Debt Disposal will be listed on the Main
Board of the Kuala Lumpur Stock Exchange once all the necessary
documentation and procedures have been complied with.

The EOB group's estimated gain amounts to approximately RM29
million pursuant to the disposals mentioned above.


GADANG HOLDINGS: Inks Plant Treatment MOU With China
----------------------------------------------------
The Board of Directors of Gadang Holdings Berhad is pleased to
announce the signing of a Memorandum of Understanding (MOU) on
21 November 2003 with Xiangcheng County Government, Suzhou City
in Jiangsu Province in the People's Republic of China for the
purpose of investing in the "Development, Construction and
Operation of the Waste Water Treatment Plant in Xiangcheng
County"  (Treatment Plant) and to collect waste water treatment
fees for a concession period of 30 years.

The Treatment Plant has a total capacity of 24,000 cubic meter
per day comprising Phase 1 and 2 with each phase having a
capacity of 12,000 cubic meter per day. As todate, Phase 1 of
the Treatment Plant has been completed and commissioned, while
the construction of the Phase 2 Treatment Plant is expected to
commence soon.

The total investment cost to be contributed by Gadang for the
Treatment Plant is Renminbi 43 million (approximately RM20.67
million) which will be held by its wholly-owned subsidiary to be
incorporated in the People's Republic of China.

Under the MOU, Gadang is given 3 months to conduct a due
diligence review and feasibility study on the viability of this
investment before the execution of a formal agreement.


INNOVEST BHD: Inks Proposed Acquisition Supplemental Agreement
--------------------------------------------------------------
Innovest Berhad refers to the announcement made on 23 September
2003 and 21 November 2003 in relation to the Proposed Rescue
Scheme.

On behalf of the Board of Directors (Board) of Innovest,
Southern Investment Bank Berhad (SIBB) wishes to announce that
the Company had on 27 November 2003 entered into a supplementary
share sale agreement (Supplemental Agreement) with Bistari LP
Berhad (Bistari LP) and the vendors of Le Premiere Sdn Bhd
(LPSB), namely, Dr Wong Poh Kun, Wong Poh Lum, Jewel Precinct
Sdn Bhd (JPSB) and Pasti Prestij Sdn Bhd (PPSB) (collectively,
referred to as the LPSB Vendors) to vary certain terms in
relation to the basis of purchase consideration of the proposed
acquisition of LPSB (Proposed Acquisition).

The summary of the revision to the terms on the Proposed
Acquisition is tabled at
http://bankrupt.com/misc/Innovest1201.gif.

EXEMPTIONS FOR COMPLIANCE WITH THE SC'S POLICIES AND GUIDELINES
ON ISSUE/OFFER OF SECURITIES (SC GUIDELINES)

On behalf of the Board of Innovest, SIBB wishes to inform that
the application for the Proposed Rescue Scheme is in compliance
with the SC Guidelines, except for Paragraphs 6.13(a)(iv) and
6.14(a) where exemptions will be sought as part of the
application for the Proposed Rescue Scheme to the SC.

DOCUMENTS AVAILABLE FOR INSPECTION

The Supplemental Agreement will be available for inspection at
the Registered Office of Innovest at Suite 9B.1, Level 9B, Wisma
E&C, No. 2, Lorong Dungun Kiri, Damansara Heights, 50490 Kuala
Lumpur from Monday to Friday (except public holidays) during
business hours for a period of fourteen (14) days from the date
of this announcement.


L&M CORPORATION: CDRS Completion Pending
----------------------------------------
The Special Administrators of L & M Corporation (M) Bhd (Special
Administrators Appointed), namely Mr. Gan Ah Tee, Mr. Ooi Woon
Chee and Encik Mohamed Raslan bin Abdul Rahman of KPMG Corporate
Services Sdn Bhd, wish to announce that all the conditions
precedent as stated in the amended and re-stated reconstruction
agreement and the several share sale agreements entered into on
18 November 2002 to facilitate and implement the Corporate and
Debt Restructuring Scheme (CDRS), have been complied with.
Accordingly, the Special Administrators wish to announce that
the Acquisitions and the Private Placement were completed on 20
November 2003 and a total of 89.8 million ITSB Shares and 36.1
million ICULS were issued on that day.

The CDRS is still pending the completion of the Capital
Reduction and Consolidation, Share Exchange, Distribution of
Shares, Distribution of ICULS, Cancellation and Re-issuance of
L&M Shares and Transfer of the Listing Status.

The Special Administrators also wish to announce that ITSB, the
company incorporated to assume the listing status of L&M, had on
22 November 2003, changed its name to Prinsiptek Corporation
Berhad.


MBF HOLDINGS: Incurs Q303 Pre-tax Loss of RM10.2M
-------------------------------------------------
MBF Holdings Berhad posted the quarterly report for the
financial period ended 30 September 2003. Below is an excerpt of
the Quarterly Report:

Review of performance

The Group recorded a turnover and a pre-tax loss of RM261.5
million and RM10.2 million respectively for the current quarter
ended 30 September 2003.  The loss was mainly due to the
additional provision for commitment amounting to RM8.3 million
and interest cost of RM9.5 million.

Variation of results against preceding quarter

For the quarter ended 30 September 2003, the Group recorded a
pre-tax loss of RM10.2 million as compared to the preceding
quarter pre-tax profit of RM918.7 million.  The substantially
higher profit for the previous quarter was mainly due to the
waiver of interest and debts resulting from the completion of
the scheme of arrangement and gains arising from the disposal of
subsidiaries.

Current Year Prospects

With the full implementation of the proposed scheme of
arrangement on 30 June 2003 and the on-going rationalization
exercise, MBfH will focus on it's core activities of card and
payment services in Malaysia and trading and agriculture in
Papua New Guinea and Fiji, all of which are profitable and
expanding businesses.  In addition, the Group will continue to
take the necessary steps to reduce its borrowings and finance
costs.

For complete copy of the quarterly financial statement, go to
http://bankrupt.com/misc/Mbf1201.xls.


MYCOM BERHAD: Alliance Terminated as Advising Merchant Bank
-----------------------------------------------------------
Alliance Merchant Bank Berhad (Alliance) wishes to announce that
on 19 November 2003, by mutual agreement, Alliance had
terminated its appointment as the advising merchant bank of
Mycom Berhad in relation to the proposed corporate exercise,
with immediate effect.


MYCOM BHD: Proposed Restructuring Scheme Implementation Pending
---------------------------------------------------------------
The Board of Directors of Mycom Berhad wishes to announce that,
by mutual agreement, the appointment of Alliance Merchant Bank
Berhad (AMBB) as the corporate adviser for Mycom's Proposed
Restructuring Scheme has been terminated on 19 November 2003.
The Proposed Restructuring Scheme, which was approved by the
shareholders of Mycom on 30 October 2003, is currently pending
implementation.

Following the termination of AMBB's services, the Board has on
27 November 2003 appointed Southern Investment Bank Berhad as
the corporate adviser to the Company in relation to the said
Scheme.


NALURI BERHAD: Posts Level of Operations Proposal Status
--------------------------------------------------------
Reference is made to Naluri Berhad (Special Administrators
Appointed)'s announcements dated 18 April 2003, 7 May 2003, 30
May 2003 and 28 August 2003.

On 21 April 2003, Pengurusan Danaharta Nasional Berhad
(Danaharta) had called for a public tender for its 309,648,000
ordinary shares of RM1.00 each representing approximately 44.84%
in Naluri.

On 27 June 2003, Danaharta announced that at the close of the
tender on 23 May 2003, it had received five bids, of which only
two qualified for evaluation, both bidding for 220.96 million
shares representing 32% equity interest in Naluri. Of the two
qualified bidders, Atlan Holdings Berhad (AHB) was declared the
winning bidder with a bid price of RM1.98 per Naluri share.

On 11 August 2003, AHB announced that its 70% owned subsidiary
company, Atlan Properties Sdn Bhd ("APSB") had entered into a
conditional sale and purchase agreement with Danaharta for the
proposed acquisition by APSB of 220,965,222 Naluri shares for a
cash consideration of RM437,511,139.

In view of the above, the Special Administrators of Naluri are
presently considering AHB's proposals to ensure an adequate
level of operations for the Company for continued trading and /
or listing on the Official List of the Exchange together with
the proposed capital repayment, in the best interest of all
stakeholders of the Company.


OLYMPIA INDUSTRIES: AMBB Appointment as Corp Adviser Terminated
---------------------------------------------------------------
The Board of Directors of Olympia Industries Berhad wishes to
announce that, by mutual agreement, the appointment of Alliance
Merchant Bank Berhad (AMBB) as the corporate adviser for OIB's
Proposed Restructuring Scheme has been terminated on 19 November
2003. The Proposed Restructuring Scheme, which was approved by
the shareholders of OIB on 30 October 2003, is currently pending
implementation.

Following the termination of AMBB's services, the Board has on
27 November 2003 appointed Southern Investment Bank Berhad as
the corporate adviser to the Company.


SOUTHERN PLASTIC: SC OKs Restructuring Scheme Time Extension
------------------------------------------------------------
With reference to Southern Plastic Holdings Bhd's announcement
dated 13 October 2003, Kuala Lumpur City Securities Sdn Bhd
wishes to inform that the Company has applied for and received,
approval from the Securities Commission (SC) for an extension of
time until 24 December 2003 to submit an appeal in relation to
the SC's non-approval of the Company's proposed restructuring
scheme as announced on 25 September 2003. In approving the
extension of time, the SC reminded that this would be the final
extension of time granted to submit a comprehensive appeal.

A revised restructuring scheme, which aims to address the
deficiencies of the original scheme, is presently being
finalized and an announcement will be released in due course.


TENCO BERHAD: Unit WSB's Court Proceeding Postponed
---------------------------------------------------
The Board of Directors of Tenco wishes to inform that the
proceedings brought by Malaysian Trustees Bhd against Westech
Sdn Bhd (WSB), a wholly-owned subsidiary of the Company, under
Penang High Court Suit No. 24-1672-2002 had been postponed to a
date to be fixed by the Court whilst cases under Penang High
Court Suit No. 24-1673-2002 and the Johor Bahru High Court Suit
No. 24-2427-2002 had been withdrawn.

Meanwhile, there are no material developments to the claims made
by Malayan Banking Berhad against WSB, Wilron Products Sdn Bhd
and Tenco Industries Sdn Bhd, all wholly-owned subsidiaries of
the Company. Tenco's solicitors had been instructed to dispute
the alleged claims.


WING TIEK: Posts Auditors' F/S Statement Qualification Report
-------------------------------------------------------------
Wing Tiek Holdings Berhad refers to the qualifications contained
in the Report of the Auditors on the Audited Financial
Statements for the year ended 31 July 2003 and appended below
the qualification made by the Auditors and the explanation of
the Directors of WTHB on the qualification made.

"1. As disclosed in Note 2 to the financial statements, the
property, plant and equipment of the Group and Company are
stated at net estimated realizable value of RM69.4 million and
RM57.8 million respectively based on a professional valuation on
the forced sale value basis and public auction reserve price
conducted in September 2001, May 2002 and June 2002. The
valuation of these assets were not updated during the current
financial year and they continue to be stated at their previous
estimated realizable value based on professional valuation less
impairment loss as assessed by the Directors. In the absence of
a recent independent valuation report, we are unable to assess
the need for any further adjustment in order for these
properties, plant and equipment to be stated at their net
recoverable amounts at 31 July 2003.

2. As disclosed in Note 13 to the financial statements, the
relevant subsidiaries and the Company which are to be liquidated
under the Proposed Corporate Debt Restructuring Scheme (CDRS),
have made provisions of RM3.2 million and RM1.5 million
respectively as retrenchment costs payable to their employees.
The retrenchment costs in respect of the non-union employees of
the relevant subsidiaries and the Company, which amounts to
RM1.9 million and RM0.7 million respectively, is based on the
last 6 months salary drawn by the employees and is expected to
be paid within the next 12 months. We are unable to determine
reliably the provision for these retrenchment costs as they are
not specifically provided for in the terms of employment with
these non-union employees and whether the amount provided for
would be sufficient.

3. As disclosed in Note 18 to the financial statements, the
Company and its subsidiaries carried out a Proof of Debt
exercise to confirm the principal debts and interest outstanding
as at 31 January 2003. The Company and its subsidiaries had
accrued interest on borrowings and penalty interest at an
interest rate of 10% per annum for the subsequent six months
ended 31 July 2003. We are unable to assess reliably the amount
of interest expense on borrowings and penalty interest and
whether the accruals for these interests would be sufficient.

4. As stated in Note 23 to the financial statements, CBS
Corporation Limited ("CBSC") has filed a claim for arbitration
against the Company and three parties in respect of a dispute
for the supply of turbines, generators and auxiliary equipment
for USD83 million. On 10 November 1998, the International Court
of Arbitration decided that the arbitration cannot proceed in
its present form following objections raised by the defending
parties. There have been no further actions taken against the
Company. We are unable to ascertain whether any further
liability may arise.

5. As stated in Note 25, to the financial statements, two
subsidiary companies in Bangladesh, Westmont Trading
(Bangladesh) Ltd and Westmont Development Ltd are dormant and
are consolidated based on unaudited management financial
statements. The investments in these subsidiaries have been
written off as it is the intention of the Board of Directors to
liquidate the companies. No liquidation expenses have been
provided for in the financial statements and we are unable to
ascertain the amount of any liabilities that may arise, if any.

Except for the effects of any adjustments that may be required
in relation to the matters referred to in the preceding
paragraphs,

   a) the financial statements, which have been prepared on a
break up basis, except for Wing Tiek Steel Pipe Sdn. Bhd. (WTSP)
which has been prepared on a going concern basis, are properly
drawn up in accordance with the provisions of the Companies Act,
1965 and applicable approved accounting standards in Malaysia so
as to give a true and fair view of:

     i) the state of affairs of the Group and the Company as at
31 July 2003 and of the results of their operations and cash
flows for the year ended on that date; and

     ii)the matters required by Section 169 of the Companies
Act, 1965 to be dealt with in the financial statements of the
Group and of the Company.

   b) the accounting and other records and the registers
required by the Companies Act, 1965 to be kept by the Company
and the subsidiaries of which we have acted as auditors have
been properly kept in accordance with the provisions of the said
Act.."

Without further qualifying their opinion, the Auditors have
drawn attention to the following:

i. The Company is an "Affected Listed Issuer" pursuant to
Practice Note 4/2001 (PN 4) due to the deficit in its
shareholders' funds. As disclosed in Note 26 to the financial
statements, WTHB is pursuing a corporate debt restructuring
exercise under Section 176 of the Companies Act, 1965. The
Proposed CDRS will entail certain subsidiaries of WTHB,
including the Company to be wound up.

ii. The Group and Company have net current liabilities of
RM588.5 million and RM500.7 million respectively, and a deficit
in shareholders' funds of RM580.1 million and RM500.7 million
respectively.

iii. The Group's banking facilities have been suspended. As at
31 July 2003, the Group and Company's suspended short term bank
borrowings including accrued interest amounted to RM630.8
million and RM456.3 million respectively.

In view of the matters referred to in paragraphs (i) to (iii)
above, the Company and its subsidiaries, except for WTSP, will
not be able to continue as a going concern and will not be able
to realize their assets and discharge their liabilities in the
normal course of business. Accordingly, the financial statements
of the Company and its subsidiaries, except for WTSP, have been
prepared on a break-up basis to reduce the value of all assets
to their estimated realizable amounts, to provide for any
further liabilities, which may arise, and to reclassify plant
and equipment and investments as current assets.

The financial statements of WTSP, includes an emphasis on the
going concern ability of the company as the company has a
deficit in shareholders' funds amounting to RM37.4 million. The
validity of the going concern assumption is dependent on the
continuous financial support from the company's bankers and
creditors and the ability of the company to achieve future
profitable operations.

The financial statements of certain subsidiaries have been
qualified on the basis as below:

Subsidiaries Qualifications

WTSP

1. Unable to assess reliability of the amount of interest
expense on borrowings and penalty interest and whether accruals
for interest on borrowings would be sufficient.

Wing Tiek Metal Industries Sdn Bhd

1. Unable to determine the appropriateness of the net realizable
value of property, plant and equipment. The net realizable value
of property, plant and equipment has been stated at the previous
estimated realizable value based on professional valuation in
2002 less further impairment loss.

2. Unable to asses reliability of the amount of interest expense
on borrowings and penalty interest and whether accruals for
interest on borrowings would be sufficient.

3. Unable to assess reliability of the amount of provisions for
retrenchment costs required in respect of non-union employees as
it is not specifically included in the terms of employment and
whether the amount would be sufficient.

Wing Tiek Ductile Iron Pipes Sdn Bhd

1. Unable to determine the appropriateness of the net realizable
value of property, plant and equipment. The net realizable value
of property, plant and equipment has been stated at the previous
estimated realizable value based on professional valuation in
2002 less further impairment loss.

2. Unable to asses reliability of the amount of interest
expense on borrowings and penalty interest and whether accruals
for interest on borrowings would be sufficient.

3. Unable to assess reliability of the amount of provisions for
retrenchment costs required in respect of non-union employees as
it is not specifically included in the terms of employment and
whether the amount would be sufficient.

Wing Bee Hardware Sdn Bhd

1. Unable to assess reliability of the amount of provisions for
retrenchment costs required in respect of non-union employees as
it is not specifically included in the terms of employment and
whether the amount would be sufficient.

2. Unable to asses reliability of the amount of interest expense
on borrowings and penalty interest and whether accruals for
interest on borrowings would be sufficient.

Ikhlas Holdings Sdn Bhd

1. Unable to determine the appropriateness of the net realizable
value of property. The net realizable value of property has been
stated at the previous estimated realizable value based on
professional valuation in 2002 less further impairment loss.

Victory Skyline Sdn Bhd

1. Unable to asses reliability of the amount of interest expense
on borrowings and penalty interest and whether accruals for
interest on borrowings would be sufficient.

The Board of Directors is of the opinion that it is in the best
interest of the Company to pursue the Proposed Corporate and
Debt Restructuring Scheme, which entail all subsidiaries of
WTHB, including WTHB but except WTSP to be wound up. Once the
Proposed CDRS is successfully implemented, the financial
problems of WTHB will be resolved and it will be able to
continue as going concerns.


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


MABUHAY VINYL: Court of Tax Appeals Affirms PHP100M Ruling
----------------------------------------------------------
Disclosure Department
Listings and Disclosure Group
Philippine Stock Exchange, Inc.

Attention: Mr. Jose G. Cervantes
           Senior Vice-President

Gentlemen:

Further to our disclosure dated 21 January 2003, please be
advised that Mabuhay Vinyl Corporation (the Corporation)
received a copy of the resolution promulgated by the Court of
Tax Appeals (CTA) denying the Motion for Reconsideration filed
by the Corporation pertaining to the CTA's decision in
connection with the case 'Mabuhay Vinyl Corporation vs.
Commissioner of Internal Revenue (CIR), CTA Case no. 5669.'

The Corporation believes that the CTA erred in denying said
Motion for Reconsideration and shall be filing a Petition for
Review with the Court of Appeals in due course.

We shall advise the Exchange of any future developments on this
matter.

Very truly yours,

Ma. Melva E. Valdez
Corporate Information Officer


In January, Mabuhay Vinyl Corp (MVC) was ordered by the Court of
Tax Appeals to pay PHP119.2 million because of deficiencies in
withholding taxes from February 24, 1998 and corresponding
interest.  The ruling from the tax appeals court stems from a
Bureau of Internal Revenue (BIR) ruling in 1997 saying MVC had
withholding and income tax deficiencies valued at PHP776.9
million.  MVC subsequently filed a motion for reconsideration
with the court, claiming that the BIR ruling had no legal basis.

According to Wright Investor's Service, Mabuhay Vinyl has paid
no dividends during the last 12 months and the previous two
fiscal years.


MANILA ELECTRIC: Plans to Raise US$200 Million via Bond Issue
-------------------------------------------------------------
Manila Electric Co.'s (Meralco) bond issued will most likely
happen in the first quarter next year, according to Benpres
Holdings Chairman Oscar Lopez over the weekend.

In an interview with The Philippine Star, Mr. Lopez said the
power utility is still studying its options and in the process
of seeking regulatory approval for the debt issue.  He said
Meralco will likely issue seven-year bonds.  Benpres owns and
manages Meralco and First Philippine Holdings Corp., which Mr.
Lopez also chairs.

"Hopefully, Meralco will conduct the bond issuance of US$200-
million plus by the first quarter of next year," he said, adding
that the financial advisor charged to handle this transaction
has been commissioned already.  He refused to identify it.

At present, Meralco's largest creditors BPI and Citibank N.A.
act as the company's financial advisors for its comprehensive
loan-restructuring program, the paper said.  The company is
scheduled to pay at least PHP5.5 billion in long-term loans in
the first quarter, part of the PHP11 billion maturing debts next
year.

"We would probably be retiring half of the PHP11 billion in the
first semester of next year.  These are all long-term dollar
loans," Meralco Treasurer Rafael Andrada told The Philippine
Star.

Thus far, he said, the company has paid up US$20 million and
US$24 million worth of loans that matured in September and
October 2003, respectively.  Another US$1 million to US$2
million will be paid this December.

"The issuance of the debt papers is one of the options being
eyed by Meralco to raise much-needed funds to finance its
operational expenses as well as its capital expenditure for
2004, including payments of maturing debts.  Meralco is
currently saddled with financial difficulties because of the
Supreme Court order directing [it] to reimburse its customers
some PHP30.05 billion worth of overcharges," The Philippine Star
said.

The company needs about PHP24.7 billion to finance the last two
stages of the refund process, which will be paid in installments
in the next eight years.  The company spent about PHP1.7 billion
for Phase I of the refund process and is expected to spend about
PHP4.6 billion for Phase II, which started on September 1.

In addition to the refund ruling, Meralco was also slapped with
a PHP20 billion fine for failing to meet the terms under its 10-
year power supply contract with the National Power Corporation,
the state-owned power generation firm.


MAYNILAD WATER: Court Voids Call on US$98 Mln Bank Facility
-----------------------------------------------------------
In connection with the Stay Order issued by Branch 90 of the
Quezon City Regional Trial Court on November 17, 2003 in
connection with the petition of Maynilad Water Services, Inc.
(Maynilad) for corporate rehabilitation, Benpres was informed
that the Regional Trial Court issued on November 27, 2003 an
order, which:

     (i) Declares that the act of MWSS in commencing on November
         24, 2003 the process for the payment by the banks of
         the US$98 million out of the US$120 million standby
         letter of credit so the banks have to make good such
         call/drawing of payment of US$98 million by MWSS not
         later than November 27, 2003 at 10:00 p.m. or any
         similar act for that matter is violative of the Stay
         Order; and

    (ii) Orders MWSS through its officers/officials to withdraw
         under pain of contempt the written certification/notice
         of draw to Citicorp International Limited dated
         November 24, 2003 and declares void any payment by the
         banks to MWSS in event such written
         certification/notice of draw is not withdrawn by MWSS
         and/or MWSS receives payment by virtue of the standby
         letter of credit.

Orders issued by the court under the Interim Rules on Corporate
Rehabilitation are immediately executory.

Benpres Holdings Corporation
Enrique I. Quiason
Corporate Secretary


PHILIPPINE NATIONAL: Recovers PHP52 Million in Latest Auction
-------------------------------------------------------------
Fifty-seven idle properties of Philippine National Bank fetched
PHP52 million during an auction last week, the bank's third for
the year, The Manila Bulletin said.

The properties sold at the public auction, which were mostly
located in Metro Manila, Quezon City and Bulacan; accounted for
49% of the 117 total properties the bank has already disposed
this year.  It plans to sell an estimated PHP2.5 billion in real
and other properties owned or acquired (ROPOA) before year-end.
At present, the bank has PHP75 billion worth of idle assets,
consisting of PHP30 billion in ROPOA and PHP45 billion in non-
performing loans, the report said.

According to Resty Ingal, vice-president for marketing, the bank
will sell properties in Cavite, Laguna and Batangas next month.
During its first auction the bank recovered PHP51 million out of
foreclosed properties and another PHP30 million in the second
auction.  The bank official did not give an estimate for the
next sale.


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


NATSTEEL LIMITED: 3Q03 Earnings Down 90% Year-on-year
-----------------------------------------------------
Net earnings of NatSteel Limited in the third quarter plunged
90%, according to Channel News Asia, due to the continuing weak
demand in the local construction sector.

Singapore steel operations lost SG$2.4 million in the quarter
due to higher costs and foreign exchange losses, the company
said.  Sale, however, grew 12% to SG$421 million.  In explaining
the huge shortfall, the company noted that last year's earnings
were due to a one-time gain from the sale of NatSteel Broadway
and NatSteel Brasil in the same quarter.

For the full year, the company expects pre-tax profits before
exceptional items to be higher than last year's.


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


CAPETRONIC INT'L: SET Transfers Listing to 'REHABCO' Sector
-----------------------------------------------------------
The Stock Exchange of Thailand (SET) has decided that Capetronic
International (Thailand) Public Company Limited (CAPE) must
remedy its characteristics, if it is to remain as a listed
company. In the meantime, effective 26 November 2003, the SET
has suspended trading in this company's securities by posting a
SP (Suspension) sign against them, and will transfer its
securities to the "Companies Under Rehabilitation" (REHABCO)
sector effective 27 November 2003.

The Stock Exchange of Thailand has established grounds for de-
listing when the listed company's operations are halted entirely
or almost entirely and the assets used in operation have
significantly lessened or are going to do so.  According to
information from CAPE, the company has significantly reduced its
production capacity, including utilization rates, and sharply
reduced its workforce. CAPE plans to dispose of much of its
machinery and inventories for further cost reduction. Because of
the significance of the uncertainty of its ongoing operation,
its auditor was unable to provide any assurance that its
financial statements for the period ended 30 September
2003presented the company's financial position fairly in all
material respects.(details as on the reviewed financial
statements for the period ended 30 September 2003 and the
clarification on its machinery disposal and reduction of the
firm's staff are from the company's news on SETSMART dated 16 &
27 June, 25 August, 24 September and 8 October 2003).


Based on the above information, the SET considers that the
company's operations are almost entirely halted and the assets
used in the operations have significantly lessened or are going
to do so. Therefore, the SET will proceed under the SET's Rule
Governing De-listing of Securities, 1999, as follows:

1. Announce that CAPE must restore its characteristics to remain
as a listed company, and post the SP (Suspension) sign against
the company's securities to suspend further trading in them,
effective 26 November 2003.

2. Transfer the securities of CAPE to the REHABCO sector on 27
November 2003. CAPE must informed the SET by 25 December 2003
whether it has decided to propose an operating plan to restore
its listing status, whether the company would like to ask for
voluntary de-listing, or other alternatives which will benefit
all stakeholders. The company must also provide the SET with its
schedule to implement its decision.

3. Continue to post the SP (Suspension) sign against the firm's
securities until it is able to remedy its listing status in
accordance with guidelines and procedures for exclusion from
being de-listed and returning to the former sector.

The SET would like all shareholders please follow up the
proposals of CAPE's operating plan to remedy its listing status,
when presented to the SET.


NAKORNTHAI STRIP: 2004 Holidays Same as SET's
---------------------------------------------
In its capacity as the Planner of Nakornthai Strip Mill Public
Company Limited, Maharaj Planner Company Limited informed that
the 2004 holidays of NSM are of no difference to the Stock
Exchange of Thailand 2004 holidays.

Last month, the Troubled Company Reporter - Asia Pacific
reported that the Company suspends the recording of interest
expense since beginning of 2003 upon the approval of Company's
Rehabilitation Plan on December 11, 2003 by the Central
Bankruptcy Court.


RAIMON LAND: Changes Exercise Warrants Price, Ratio
---------------------------------------------------
Raimon Land Public Company Limited (Raimon) announced recently
that due to the recent share subscriptions by way of Private
Placement between 7th and 10th November 2003, the exercise price
and the exercise ratio of warrants of the Company (RAIMON-W)
will be adjusted as specified in the Warrant Prospectus as
follows;

                       Per Warrant at           Par Warrant
                         Par Baht 5            at Par Baht 1
                         Old        New              New
Exercise Price (Baht) *  5.00   4.814            0.963
Exercise Ration
per Warrant               1    1.03870                  1.03870

Commenting on the adjustment, Mr. Nigel J. Cornick, CEO of
Raimon, said that "The new exercise price and new exercise ratio
should bring some benefit to the Warrant holders and has been
calculated under the published warrant agreement."

Raimon Land is a Thai real estate developer specializing in the
residential market and is listed on the SET. Further details in
regards to the Company may be obtained from Raimon Land's
website at www.raimonland.com.

CONTACT INFORMATION: Mr. Nigel J. Cornick
        Chief Executive Officer
        Raimon Land Plc.
        22nd Floor, The Millennia Tower
        62 Langsuan Road, Pathumwan,
        Bangkok 10330
        Tel : +66 (0) 2651-9600 to 4
        Fax : +66 (0) 2651-9614
        Email: nigel@raimonland.com


                            *********


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

Troubled Company Reporter -- Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Lyndsey Resnick, Mavy Nineza-Merlin, Ma. Cristina
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Copyright 2003.  All rights reserved.  ISSN: 1520-9482.

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                 *** End of Transmission ***