TCRAP_Public/031212.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

           Friday, December 12, 2003, Vol. 6, No. 246

                            Headlines

A U S T R A L I A

MAYNE GROUP: Ends Exclusive Talks with New Clicks Australia
NORMANS WINES: Auditor, Two Execs Sued Over 2001 Collapse


C H I N A  &  H O N G  K O N G

CHINA CONSTRUCTION: Picked for 'Pilot' Govt Rescue Program
CHINA-HONG KONG: Posts HK$72 Million First-half Net Loss
GOOD IDEA: Faces Winding up Petition in Hong Kong High Court


I N D O N E S I A

TELEKOMUNIKASI INDONESIA: To Bare Re-audited Books by January
TELEKOMUNIKASI INDONESIA: Delisting Rumors Untrue


J A P A N

ASHIKAGA FINANCIAL: Unveil Changes In FTSE Indices
CROSSWAVE COMMUNICATIONS: Enters Deal With NTT Com
DAIEI INC.: Completes Sale of Fukuoka Assets
MITSUI MINING: IRCJ to Purchase Loans


K O R E A

HYNIX SEMICONDUCTOR: Minority Shareholders Win Suit
LG CARD: Singapore's Temasek Eyes Takeover


M A L A Y S I A

ANTAH HOLDINGS: Issues Default Status Update
BOUSTEAD HOLDINGS: Plans to issue RM350M Bonds
KEMAYAN CORPORATION: THSRSB Files Suit Against Firm
KSU HOLDINGS: Unveils Payment Default
NALURI BERHAD: Answers KLSE Query

RHB GROUP: Plans to Cut MYR4.57B Debt by Half
TENAGA NASIONAL: Gets OK For Securities Issue
TONGKAH HOLDINGS: Court OKs Restructuring Proposal


P H I L I P P I N E S

BENPRES HOLDINGS: Clarifies Maynilad Bailout Report
MUSIC CORPORATION: Wants to Erase Capital Deficiency by 2004
NATIONAL BANK: Targets Php150M Income This Year
NATIONAL BANK: Expects to Trim Bad Loans to PhP43B by Yearend
NATIONAL STEEL: Indian Firm Ops Offer to Php12.25B

PRIMETOWN PROPERTY: Court OKs Rehabilitation


S I N G A P O R E

ECON INTERNATIONAL: Clarifies Unit Liquidation Report
ETAT ENTERPRISE: Releases Winding Up Order Notice
FHTK HOLDINGS: Issues Shareholder's Interest Change Notice
GOLDENLITE DEVELOPMENT: Petition to Wind Up Pending
JOHAN SINGA: Issues Preferential Dividend

LEE PTE: Issues Winding Up Order Notice
MULTI-CHEM LIMITED: Posts Changes in Shareholder's Interest


T H A I L A N D

THAI MILITARY: Singaporean Bank Plans to Buy 20-30% Stake
TPI POLENE: Sets Public Offering January 12-16

* Large Companies with Insolvent Balance Sheets

     -  -  -  -  -  -  -  -

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


MAYNE GROUP: Ends Exclusive Talks with New Clicks Australia
-----------------------------------------------------------
Disagreements over the value of Mayne Pharmacy Services (MPS)
led Mayne Group and New Clicks Australia to cancel exclusive
negotiations early this week.

According to The West Australian, the loss of a major Glaxo-
SmithKline distribution contract was what triggered the
divergent valuation of MPS.  Before the contract loss, Mayne had
valued MPS at AU$380 million.

Mayne claims it is still negotiating with more than two other
buyers, whose identities it did not reveal.  New Clicks
Australia, on the other hand, is still keen to do a deal, but a
spokesman told The West Australian this would only happen if "it
is at a price where there is value in it."

"The business is now being targeted aggressively by Australian
Pharmaceutical Industries and Sigma," a source close to the deal
told The West Australian. "Mayne's competitors are currently in
a feeding frenzy trying to lure away banner group members and
wholesale distribution customers."

The banner groups are the chemist chains supported by MPS and
include Chem Mart, Terry White and Healthsense, according to the
paper.  MPS distributes AU$1.94 billion of goods to these and
other chains each year.


NORMANS WINES: Auditor, Two Execs Sued Over 2001 Collapse
---------------------------------------------------------
The Supreme Court of Western Australia has postponed until
February 26 the final pre-trial hearings on the lawsuit filed by
Ernst & Young, the liquidator of Normans Wines.  

The suit, according to The Advertiser, names Deloitte Touche
Tohmatsu, a former Normans officer and a former Normans director
as defendants.  The liquidator seeks AU$20 million in damages
for alleged negligence and breach of contract, on the part of
Deloitte; and alleged breaches of statutory and fiduciary
duties, in the case of the two former executives, identified by
the paper as Robert Horlin-Smith and Walter Enriquez.  Mr. Smith
served the company as secretary and chief financial officer,
while Mr. Enriquez occupied a board post.

"The liquidator alleges the company should have declared
substantial losses -- instead of profits -- in its 1997, 1998
and 1999 financial statements," The Advertiser said.

A failed merger with Perth wine company, Xanadu, accelerated the
company's collapse in July 2001.  Saddled with a AU$60 million
debt load, Xanadu brought it out of receivership later that
year.  It sold several assets, including wineries and vineyards
thereafter.  Recently, a meeting of Normans' creditors was
postponed until November 2004, the paper said.

Normans Wines listed in 1994 with a market capitalization of
AU$16.5 million and, in its first year, beat its prospectus
forecast profit of AU$2.03 million by 1 percent, according to
the paper.  

Ernst & Young represents 1548 unsecured creditors.


==============================
C H I N A  &  H O N G  K O N G
==============================


CHINA CONSTRUCTION: Picked for 'Pilot' Govt Rescue Program
----------------------------------------------------------
Industrial & Commercial Bank of China and China Construction
Bank, two of China's four major state-run commercial banks, will
receive a 130 billion yuan (US$15.71 billion) injection from
China's treasury, Dow Jones says.

The capital infusion is part of a new rescue package for the
ailing financial sector, an unnamed banker told the newswire.  
"I was told the Ministry of Finance has just taken out 130
billion yuan [from the Treasury] to give to two of the four
state-owned banks to write off their bad assets."

"Our bank [China Construction Bank] is definitely one of them. I
was told the other is ICBC," the source added.

In addition to this capital boost, China Construction will also
be allowed to withhold its profit from the state this year and
use the money to reduce its bad-loan portfolio, instead.  This
arrangement is believed to be in preparation for a public
offering in 2005.  In 2002, China Construction remitted 25
billion yuan of its profit to the government.

Last week, China Banking Regulatory Commission Chairman, Liu
Mingkang, said one or two of the country's state-run commercial
banks are to take part in a pilot reform program aimed at
reducing their bad loans, boosting their capital adequacy,
strengthening their management and ultimately listing on a stock
exchange.


CHINA-HONG KONG: Posts HK$72 Million First-half Net Loss
--------------------------------------------------------
After posting a HK$39.3 million net profit for the six months to
September last year, China-Hong Kong Photo Products ended the
period this year with a huge HK$72.01 million net loss.  The
company blamed the SARS outbreak earlier this year for the
tailspin, which pulled turnover by 26.44% to HK$678.45 million,
according to the South China Morning Post.


GOOD IDEA: Faces Winding up Petition in Hong Kong High Court
------------------------------------------------------------
The High Court of Hong Kong will hear on February 4, 2004 at
9:30 a.m. the petition seeking the winding up of Good Idea
Development Limited.  

Chan Jim Hung of Room 604, Block 16, Shek Kip Mei Estate,
Kowloon, Hong Kong filed the petition on November 28, 2003.  Tam
Lee Po Lin, Nina represents the petitioner.

Creditors and other interested parties are encouraged to attend
the hearing.  They only need to notify in writing Tam Lee Po
Lin, Nina, which holds office on the 34th Floor, Hopewell
Centre, 183 Queen's Road East, Wanchai Hong Kong.


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


TELEKOMUNIKASI INDONESIA: To Bare Re-audited Books by January
-------------------------------------------------------------
The re-audited 2002 financial results of PT Telekomunikasi
Indonesia Tbk will be ready by January this year, according to
Reuters.

The revision of the 2002 books was earlier ordered by U.S.
regulators, who spotted certain discrepancies in accounting.  
The company, which is listed in the U.S., has said the re-audit
process could decrease net income after tax for 2002 between 4-
20 percent and shareholders equity by between 3-5 percent.

"From the meeting between Telkom and its auditors, it has been
agreed that the 2002 financial results must be completed in
January 2004," Herwidayatmo, head of Indonesia's capital markets
watchdog, told reporters Wednesday.

Some analysts say the lingering problems with the company's 2002
financial results have weighed on sentiment over Telkom although
its shares have risen by more than 57 percent this year compared
to the overall Jakarta index gain of 52 percent.


TELEKOMUNIKASI INDONESIA: Delisting Rumors Untrue
-------------------------------------------------
There's no truth to speculations that the company will delist
from the New York Stock Exchange, PT Telekomunikasi Indonesia
Tbk said yesterday.

Talks that the telecom giant will cease trading on the U.S.
bourse swirled after State Enterprises Minister Laksamana
Sukardi said earlier this week that the government would review
whether to keep Telkom listed in New York because of high costs
and opportunities elsewhere.

"Telkom does not have any intention of pursuing a delisting from
the NYSE and has not received any instruction from its major
shareholder of otherwise to pursue any such option," Reuters
quoted a company statement released yesterday.


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


ASHIKAGA FINANCIAL: Unveil Changes In FTSE Indices
--------------------------------------------------
Following the nationalization of Ashikaga Bank by the Japanese
Government and in accordance with FTSE Global Equity
Index Series Ground Rules, FTSE announced the following changes:


INDEX          CHANGE                          EFFECTIVE FROM
                                               START OF TRADING

FTSE All-World     Ashikaga Financial Group     22 December 2003
Index              will be delted from the index

FTSE World Index   Ashikaga Financial Group     22 December 2003
Ex-Multinationals  will be removed from
                   the index as detailed above

FTSE Global Style Ashikaga Financial Group will 22 December 2003
Index             be removed from the index as
                  detailed above

With effect from 1 December 2003, use and redistribution of
SEDOLs is subject to a separate license from London Stock
Exchange. Please contact the London Stock Exchange for further
information on +44 (0) 20 7797 3009 or via email
sedol@londonstockexchange.com

COUNTRY CONSULTATION - FTSE Group is conducting a worldwide
consultation exercise, to gather market users' views on the
classification of countries within global indices. Visit
www.ftse.com/country to find out more and submit your view.

For index related enquiries or further information about FTSE
please contact:

Client Services in UK: Tel: +44 (0) 20 7448 1810
Client Services in US: Tel: +1 212 825 1328 or +1 415 445 5660
Client Services in Asia Pacific: Tel: +852 2230 5800 or +65 6223
3738

Or, email your enquiries to info@ftse.com or visit the website
at www.ftse.com


CROSSWAVE COMMUNICATIONS: Enters Deal With NTT Com
--------------------------------------------------
Crosswave Communications, Inc. and Crosswave Services Inc.
(jointly referred to as Crosswave) announced Tuesday the signing
of a definitive agreement on a transfer of Crosswave operations
to NTT Communications Corporation (NTT Com).

Since concluding a letter of intent on November 11, 2003,
Crosswave and NTT Com have been negotiating the details of the
agreement, and today both parties agreed to the full terms and
conditions covering the transfer of Crosswave business
operations. The transaction will be completed on December 15,
2003 subject to the permission of the Tokyo District Court after
a creditor's meeting.

Since concluding a letter of intent on November 11, 2003,
Crosswave and NTT Com have been negotiating the details of the
agreement, and on Tuesday both parties agreed to the full terms
and conditions covering the transfer of Crosswave business
operations. The transaction will be completed on December 15,
2003 subject to the permission of the Tokyo District Court after
a creditor's meeting.


DAIEI INC.: Completes Sale of Fukuoka Assets
--------------------------------------------
Daiei Inc. will sell a leisure complex and baseball stadium in
Fukuoka to U.S. investment firm Colony Capital, Namnews reports.
Colony Capital is to acquire the assets in return for taking on
79 billion yen (US$727 million) of Daiei's debt. The retailer
decided to sell the Fukuoka business as part of efforts to
reduce its huge overall debt. However, it will retain ownership
of the Daiei Hawks baseball team, based at the Fukuoka stadium.


MITSUI MINING: IRCJ to Purchase Loans
-------------------------------------
The Industrial Revitalization Corporation of Japan (IRCJ) has
decided to purchase outstanding loans to struggling Mitsui
Mining Co. from creditor banks, Kyodo News reported on Thursday.
This means completion of negotiations over debt purchases
concerning all eight troubled firms to be bailed out by the
governmental corporate revival body.


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


HYNIX SEMICONDUCTOR: Minority Shareholders Win Suit
---------------------------------------------------
Minority shareholders of Hynix Semiconductor Manufacturing Inc.
won a lawsuit against Hyundai Securities and its former Chairman
Lee Ik-chi at the Seoul Appellate Court, according to the Korea
Times. With the court's ruling in favor of the plaintiffs, the
52 individual investors will receive a total of 350 million won
in compensation from damage claims concerning the alleged stock
price manipulation by Lee in 1998.

The investors suffered heavy losses after buying Hynix shares
before regulators looked into the Hyundai Group's dubious stock
trading in 1999. The People's Solidarity for Participatory
Democracy (PSPD) played a crucial role in helping the minority
shareholders win the legal battle.


LG CARD: Singapore's Temasek Eyes Takeover
------------------------------------------
Singapore's Temasek Holdings Ltd. will join the race to acquire
struggling LG Card Co., according to Dow Jones on Thursday.
Among other foreign investors, Newbridge Capital Ltd. has
expressed its intent to take over LG Card, an official at the
Financial Supervisory Commission said earlier. HSBC Holdings Plc
(HBC), Citibank and GE Capital were also reported by local media
as being interested in the largest credit card firm in South
Korea.


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


ANTAH HOLDINGS: Issues Default Status Update
--------------------------------------------
The Board of Directors of Antah Holdings Berhad (Antah)
announced that the updates on Antah's involvement in litigation
as announced previously on 13 November 2003 are as follows:

1. Financial Institutions

The hearing dates and status in respect of the claims made by
the following financial institutions have been fixed as follows-

Claimant Suit No. Hearing Date/Status

RHB Sakura Merchant Bankers Bhd MT4-22-921-2002 16 March 2004
Aseambankers Malaysia Bhd D3-22-152-2003 6 January 2004
Bank of Tokyo-Mitsubishi (Malaysia) Bhd D4-22-1940-2002

Extension of Time to file Notice of Appeal allowed

Mizuho Corporate Bank Ltd D1-22-280-2003 11 February 2004
Ambank Berhad S1-22-836-2002 5 January 2004
RHB Bank Berhad D4-22-1401-03 29 December 2004

There are no material developments to the other claims by
financial institutions against Antah.

2. Non-Financial Institutions

The hearing dates in respect of the claims made by the following
non-financial institutions have been fixed as follows-

Claimant Suit No Hearing Date

Haw Ah Bee Construction Sdn Bhd S3-22-1334-2002 Pending full
settlement
Southern Investment Bank Berhad S8-52-16056-03 26 January 2004

There are no material developments to the other claims by non-
financial institutions against Antah.

3. Corporate Guarantee

There are no material developments to the other claims against
companies where Antah has provided a corporate guarantee.


BOUSTEAD HOLDINGS: Plans to issue RM350M Bonds
----------------------------------------------
Boustead Holdings Bhd plans to issue up to 350 million ringgit
worth of bonds to enable it to refinance its existing loans, the
Star reports. The Company is planning a bank guaranteed serial
bonds issue of up to 250 million ringgit in nominal value and
bank guaranteed redeemable convertible bonds of up to RM100mil
in nominal value. The bond issues will be completed by the
second quarter of the financial year to December 2004.


KEMAYAN CORPORATION: THSRSB Files Suit Against Firm
---------------------------------------------------
The Board of Directors of Kemayan Corporation Berhad (KCB)
informed the Kuala Lumpur Stock Exchange that the Company had on
8th December 2003 received a Writ of Summons from Teo Hang Sam
Realty Sdn Bhd (THSRSB) for the following claims against KCB in
respect of the rental of Suite 802, Tingkat 8 (Suite 802) and
Suite 2104-2106 (Suite 2104-2106) including corridor (the
Corridor), Tingkat 21, Plaza See Hoy Chan, Jalan Raja Chulan,
50200 Kuala Lumpur [the said premises]:

1. The total sum of RM3,933,950.29 as at 18 August 2003;
2. Interest at the rate of 10 percent per annum on the total
outstanding rental of RM3,933,950.29 from 18 August 2003 until
the date of full payment;

3. Double rental rate charged amounting to RM12,316.80 from 1
September 2003 until the date of handing over of vacant
possession of Suite 802;

4. Double rental rate charged amounting to RM49,593.60 from 1
September 2003 until the date of handing over of vacant
possession of Suite 2104-2106;

5. Double rental rate charged amounting to RM4,435.20 from 1
September 2003 until the date of handing over of vacant
possession of the Corridor;

6. Special damages to be imposed on the cost incurred for
reinstate the condition of the said premises together with other
charges until the date of vacant possession of the said
premises;

7. An order of vacant possession of the said premises will be
served on plaintiff immediately;

8. Cost; and

9. Such other relief as the Honourable Court may deem fit and
proper.

The claim is in respect of the Tenancy Agreements dated 8
September 1997 and 30 May 1997 entered into between THSRSB and
KCB in which THSRSB alleged that KCB has defaulted the total
payment of RM3,933,950.29 as at 18 August 2003.

The rental dispute between KCB and THSRSB under Originating
Summon No. S8-(S4)-24-1905-1999 is currently under arbitration.
KCB is seeking solicitor's advice to strike out this Writ of
Summons. Since this case is under arbitration, the Court has not
adjudicated the claim; therefore, there is no immediate loss as
at this stage except for legal fee to be incurred in defending
the claim.


KSU HOLDINGS: Unveils Payment Default
-------------------------------------
As required by the Kuala Lumpur Stock Exchange (KLSE) Practice
Note 1/2001, KSU Holdings Berhad wish to provide an update on
the details of all the facilities currently in default, as
enclosed in Appendix A.

The default as at 30 November 2003 amounted to RM106,452,694.87
of principal sum and RM29,858,476.09 of interest for
term/bridging loans and overdraft facilities.

There is no other new development since our previous
announcement with regards to this Practice Note.

APPENDIX A

DEFAULT AS AT 30 NOVEMBER 2003

MAY PLASTICS INDUSTRIES BERHAD

BANK         FACILITY   PRINCIPAL        INTEREST
                        DEFAULT          DEFAULT
1. MIMB/MIDF Term Loan  RM28,528,191.15  RM3,245,693.03

MAY PACKAGING INDUSTRIES SDN BHD

BANK            FACILITY   PRINCIPAL        INTEREST
                           DEFAULT          DEFAULT

1. EON BANK BHD Term Loan  RM3,431,775.00   RM1,888,065.78

KUMPULAN SEPANG UTAMA SDN BHD

BANK            FACILITY         PRINCIPAL        INTEREST
                                 DEFAULT          DEFAULT

1. EON BANK BHD Overdraft       RM1,500,000.00   RM198,779.91
2. MBSB         Term Loan       RM30,741,498.72  RM10,662,911.43
3. MBSB         Bridging Loan I  RM22,178,261.55  RM7,239,209.72
4. MBSB         Bridging Loan II RM20,072,968.45  RM6,623,816.22

TOTAL                            RM74,492,728.72  24,724,717.28
GROUP TOTAL                      RM106,452,694.87
RM29,858,476.09


NALURI BERHAD: Answers KLSE Query
---------------------------------
Naluri Berhad refers to the letter dated 9 December 2003 from
the Kuala Lumpur Stock Exchange (KLSE) regarding the article,
which appeared in the Nanyang Siang Pau on 9 December 2003.

On behalf of the Special Administrators (SAs) of Naluri,
Aseambankers Malaysia Berhad clarified that the SAs are
currently formulating a composite scheme to address the current
inadequate level of operations of Naluri pursuant to Practice
Note 10/2001 of the KLSE Listing Requirements. Pursuant thereof,
the SAs are exploring a scheme which encompasses a proposed
capital repayment to the shareholders of Naluri, and the
proposed acquisitions of certain assets and companies. However,
the terms of the acquisitions have not been finalized at this
juncture and no definitive agreements have been executed todate.

As and when the definitive agreements are executed, the Company
will make an appropriate announcement to the KLSE in due course.

This announcement is dated 10 December 2003.
Query Letter content:

The Company refers to the above article appearing in Nanyang
Siang Pau, Nanyang Business Section, page C3 on Tuesday, 9
December 2003, a copy of which is enclosed for your reference.

In particular, we would like to draw your attention to the
underlined sentences, which state that Naluri Berhad will
acquire a Company involving in auto parts manufacturing for
RM100 million.

In accordance with the Exchange's Corporate Disclosure Policy,
you are requested to furnish the Exchange with an announcement
for public release confirming or denying the above reported
article and in particular the underlined sentences after due and
diligent enquiry with all the directors, major shareholders and
all such other persons reasonably familiar with the matters
about which the disclosure is to be made in this respect. In the
event you deny the above sentences or any other part of the
above reported article, you are required to set forth facts
sufficient to clarify any misleading aspects of the same. In the
event you confirm the above sentences or any other part of the
above reported article, you are required to set forth facts
sufficient to support the same.

Please furnish the Exchange with your reply within one (1)
market day from the date hereof.

Yours faithfully

LISA LAM
Sector Head,
Issues & Listing
KLL/CY
c.c. Securities Commission (via fax)


RHB GROUP: Plans to Cut MYR4.57B Debt by Half
---------------------------------------------
RHB Group plans to cut its 4.57 billion-ringgit debt by about
half and will announce details of the restructuring plan within
nine months, according to Dow Jones, citing RHB Group's
Executive Chairman Sulaiman Abdul Rahman Taib.

Sulaiman said the group's debts includes 2 billion ringgit at
holding Company Rashid Hussain Bhd. (1309.KU), 1 billion ringgit
at RHB Capital, 1.4 billion ringgit at RHB Bank and MYR165
million at RHB Sakura Merchant Bankers Bhd. (6882.KU).

RHB has also received queries from local and foreign investors
who are interested in acquiring its Vision City commercial
property project in Kuala Lumpur, Sulaiman added. He decline to
provide further details. The RHB group is controlled by Cahya
Mata Sarawak Berhad, which is the investment arm of eastern
Sarawak state.


TENAGA NASIONAL: Gets OK For Securities Issue
---------------------------------------------
The Malaysian Securities Commission has given its approval for
Tenaga Nasional's proposed issuance of 200-million ringgit in
five-year unsecured convertible redeemable income securities.
Tenaga must meet routine conditions for the issue, such as
providing a prospectus for investors.


TONGKAH HOLDINGS: Court OKs Restructuring Proposal
--------------------------------------------------
Public Merchant Bank Berhad (PMBB), on behalf of the Board of
Tongkah Holdings Berhad (THB), had on 13 November 2003, made an
application to the Kuala Lumpur Stock Exchange (Exchange) to
shorten the notice period for the books closure date in respect
of the share exchange from 12 market days pursuant to paragraph
9.19(1) of the Listing Requirements to 5 clear market days
(Application). Pursuant thereto, PMBB, on behalf of the Board of
THB, is pleased to announce that the Exchange had via its letter
dated 9 December 2003, granted its approval for the said
Application.


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


BENPRES HOLDINGS: Clarifies Maynilad Bailout Report
---------------------------------------------------
This is in reference to the news article entitled "MWSS poised
to get 30 percent of Maynilad in Gov't bailout" published in the
December 10, 2003 issue of the Manila Standard. The article
reported "The government and the Lopez group of the companies
have begun discussions on the possibility of a bailout for
Maynilad Water Services Inc. which can be concluded by the end
of the year, Malacanang sources said on Wednesday. The talk's
center on government buying 30 percent of the ailing Maynilad
for $20 million through a debt swap agreement with the
Metropolitan Waterworks and Sewerage System (MWSS). Sources said
the French Partner of the Lopez group in Maynilad, the Ondeo
Group wants to pull out of the Philippines because of losses
being incurred by the water firm."

Benpres Holdings Corporation (BPC), in its letter dated December
10, 2003.

"Please be advised that MWSS and the majorityu stockholders of
Maynilad, Benpres and Ondeo, have commenced good faith
discussions for the possible settlement of pending controversies
between MWSS and Maynilad. The discussion, while very
preliminary, is comprehensive and considers all possible options
including the idea of a debt-equity swap. Any agreement becomes
final only when all appropriate approvals from the government
are obtained."

For a copy of the press release, go to
http://www.pse.org.ph/html/disclosure/pdf/dc2003_3936_BPC.pdf


MUSIC CORPORATION: Wants to Erase Capital Deficiency by 2004
------------------------------------------------------------
Music Corporation is confident it can wipe out its capital
deficiency by next year through better profits from its
semiconductor business and by selling additional shares, reports
the Business World. The Company has already trimmed its capital
deficiency to 102 million pesos as of end-September. By end-
2003, the Company is confident this will be further reduced to
72 million pesos. This is in comparison to the 344 million pesos
in capital deficiency as of December 2002.

For the first nine months, Music said its net profit amounted to
29.79 million pesos and its operating profits at 69.98 million
pesos. The bankruptcy expenses incurred by US unit Music
Semiconductors, Inc., which amounted to PhP23 million in the
second quarter and PhP16 million in the third quarter, affected
its income.


NATIONAL BANK: Targets Php150M Income This Year
-----------------------------------------------
Philippine National Bank (PNB) is targeting a net profit of 150
million pesos this year, BPI Securities reports. The bank
incurred a net profit of 6 million in October and 133 million in
the 10 months to October, BPI Securities reports.

PNB managed to sustained its recovery in the first nine months
of the year on the back of improved net interest margins, higher
fee-based gains and a reduction in operating expenses. The bank
has also disposed of some of its idle assets to raise revenue.
The planned notes issue of up to US$140 million, to raise tier 2
capitals, has been deferred until the first quarter of 2004.


NATIONAL BANK: Expects to Trim Bad Loans to PhP43B by Yearend
-------------------------------------------------------------
Philippine National Bank (PNB) aims to cut its bad loans by as
much as 5 billion pesos in the last quarter to just 43 billion
pesos, according to Business World, citing PNB President Lorenzo
B. Tan. PNB's satisfactory performance for the second year of
its five-year rehabilitation plan was traced to the 1.3-billion
pesos increase in the level of its current account and savings
account (CASA) in October. Its total deposits as of October 31
reached 150 billion pesos, 13 billion pesos higher than the
December 2002 level of 137 billion pesos.


NATIONAL STEEL: Indian Firm Ops Offer to Php12.25B
--------------------------------------------------
Indian firm Global Infrastructure Holdings Ltd. Inc. (GIHLI) has
raised its original purchase price to 12.250 billion from 11.905
billion for the National Steel Corporation (NSC) and agreed to
pay 1 billion pesos up front, instead of its original offer of
655 million pesos, the Philippine Star reported on Thursday,
citing major creditor the Land Bank of the Philippines.

Teves said NSC's creditors were now discussing GIHLI's offer
sheet individually before coming together to arrive at a final
decision.


PRIMETOWN PROPERTY: Court OKs Rehabilitation
--------------------------------------------
The Makati Regional Trial Court (RTC) has placed Primetown
Property Group Inc. under rehabilitation receivership, the
Company said in a disclosure to securities regulators on
Wednesday. In an order, the Makati RTC has referred Primetown's
rehabilitation plan to Jose Absalom Jocom Jr., the firm's duly
appointed receiver, for study, evaluation and recommendation
within 90 days from receipt of order.

Primetown has interests in a 22.6-hectare property in Mactan,
Cebu and 23 hectares of property in Boracay Island, which it is
ready to cede to the creditors to liquidate the loan. Records
showed Primetown's debts to financial institutions totaled 549.9
million pesos, while liabilities totaled 942.2 million pesos. It
also has assets totaling 695 million pesos, consisting of 407.2
million pesos in real estate projects, 223.3 million pesos in
receivables, 42 million pesos in investments, 19.7 million pesos
in other assets, and 1.7 million pesos in cash.


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


ECON INTERNATIONAL: Clarifies Unit Liquidation Report
-----------------------------------------------------
Econ International Limited (EIL) refers to the articles in the
Business Times and the Straits Times dated 3 December 2003 and 5
December 2003 respectively, commenting on the liquidation of its
subsidiary, Econ Corporation Limited (ECL).

It was necessary for ECL to propose a Scheme of Arrangement to
its creditors in May 2003 (the ECL Scheme), given its then
financial position and outlook. The hope and expectation was
that with the ECL Scheme in place, ECL's debts could be
compromised/restructured, and at the same time ECL be allowed to
continue to tender for projects. In this way, the continued
survival of ECL as an on-going concern could be facilitated. The
objective, if achieved, would also result in better recovery for
ECL's creditors. With the ECL Scheme in place, the scheme that
EIL intended to propose to its creditors (the intended EIL
Scheme) would also be facilitated. The ECL Scheme that was
proposed to creditors was one that management felt was
realistically achievable. Under the ECL Scheme, ECL's creditors
would ultimately become the majority shareholders in EIL.

The ECL Scheme was voted on and approved by the requisite
majorities of creditors, at the creditors' meeting held on 17
June 2003. The creditors' meeting was held in accordance with
the Order of Court dated 7 May 2003, under which the creditors'
meeting had to be held by 18 June 2003. ECL's efforts to obtain
the Court sanction for the ECL Scheme (which was approved by the
requisite majorities of creditors) met with opposition from
certain creditors (Opposing Creditors). The delay in obtaining
the Court's sanction, as a result of protracted legal
proceedings due to opposition from the Opposing Creditors,
created more uncertainty and made on-going operations more
difficult as ECL's financial status continued to be in doubt. A
series of contract terminations then took place. These changes
and the continued worsening of the operating environment for ECL
in the weeks and months after May 2003 (exacerbated by the delay
in obtaining the sanction of the Scheme) resulted in ECL
operating under very extreme circumstances. There was a loss in
confidence from customers, suppliers, sub-contractors and banks,
which are vital to the on-going operations of ECL. Nevertheless,
if the sanction of the Court for the ECL Scheme were to be
granted, the management of ECL believed that the Scheme could
still be carried out.

On 24 November 2003, the High Court ruled that it would not
sanction the ECL Scheme. By this time, the circumstances facing
ECL were very different from those at the outset when the ECL
Scheme was proposed. With the Scheme dismissed, ECL's operations
could not have continued whilst ECL was insolvent. Options such
as appointing interim judicial managers would, in ECL's
management's opinion, not be useful now since the operating
circumstances have deteriorated and are likely to be aggravated
even further after the Court's unfavourable ruling even if the
ruling were to be appealed. Any possible appeal against the
decision would have to be weighed against the reality of the
circumstances facing ECL, the continued uncertainty of ECL's
position, the loss of creditor confidence and the lack of legal
immunity from lawsuits during the period while the appeal was
waiting to be heard. Further losses of S$28m were also incurred
by ECL for the first-half of the financial year ended 30
September 2003 (which were included in EIL's announcement on 28
November 2003 of the Group's unaudited results for the same
period); and ECL was also debarred from tendering for government
jobs for a period of five years (which was intended to be
appealed against, if the ECL Scheme was approved, as per the
announcement on 4 November 2003).

Having considered the circumstances in their totality, the
consequences (and the viability) of the various possible courses
of action and taking into account the relevant advice obtained,
it was with deep regret that ECL was put into liquidation by
ECL's management. On 26 November 2003, ECL commenced the
creditors' voluntary liquidation, and provisional liquidators
were appointed, which was announced by EIL on 28 November 2003.

On 27 November 2003, the Opposing Creditors petitioned to place
ECL under interim judicial management (the Petition). The
Petition was heard in the High Court on 3 December 2003. The
High Court ordered that all proceedings in the Petition filed by
the Opposing Creditors be stayed for the reason that leave of
Court was not obtained before the Petition was filed as required
by Section 299(2) of the Companies Act, Cap 50. Unless the stay
order is lifted by another order of court, the Opposing
Creditors cannot proceed further with their Petition. The
Opposing Creditors have filed an application for the stay order
to be lifted and this application is fixed for hearing in the
High Court on 15 December 2003.


ETAT ENTERPRISE: Releases Winding Up Order Notice
-------------------------------------------------
Etat Enterprise Pte Ltd issued a winding up order notice made
the 28th day of November 2003.

Name and address of Liquidator: The Official Receiver
The URA Centre (East Wing) 45 Maxwell Road #05-11/#06-11
Singapore 069118.

Dated the 28th day of November 2003.

Messrs LEE BON LEONG & CO.
Solicitors for the Petitioner.


FHTK HOLDINGS: Issues Shareholder's Interest Change Notice
----------------------------------------------------------
FHTK Holdings Limited issued a notice of changes in substantial
shareholder Citibank N.A. (Singapore)'s interest:

Date of notice to Company: 05 Dec 2003
Date of change of shareholding: 04 Dec 2003
Name of registered holder: Citibank Nominees Singapore Pte Ltd
Circumstance(s) giving rise to the interest: Sales in open
market at own discretion
Information relating to shares held in the name of the
registered holder:  

No. of shares which are the subject of the transaction:
4,405,000
% of issued share capital: 0.358
Amount of consideration (excluding brokerage and stamp duties)
per share paid or received: S$0.095
No. of shares held before the transaction: 29,001,320
% of issued share capital: 2.356
No. of shares held after the transaction: 24,596,320
% of issued share capital: 1.998

Holdings of Substantial Shareholder including direct and deemed
interest
                                           Deemed  Direct
No. of shares held before the transaction: 0       97,322,000
% of issued share capital:                 0       7.907
No. of shares held after the transaction:  0       92,917,000
% of issued share capital:                 0       7.549
Total shares:                              0       92,917,000

No. of Warrants Nil
No. of Options Nil
No. of Rights Nil
No. of Indirect Interest Nil


GOLDENLITE DEVELOPMENT: Petition to Wind Up Pending
---------------------------------------------------
The petition to wind up Goldenlite Development Pte Ltd. is set
for hearing before the High Court of the Republic of Singapore
on January 9, 2004 at 10 o'clock in the morning. The Bank of
China, a creditor, whose address is situated at 4 Battery Road,
Bank of China Building, Singapore 049908, filed the petition
with the court on November 28, 2003.

The Petitioner's solicitors are Messrs Rajah & Tann of 4 Battery
Road, #15-01 Bank of China Building, Singapore 049908. Any
person who intends to appear on the hearing of the petition must
serve on or send by post to Messrs Rajah & Tann a notice in
writing not later than twelve o'clock noon of the 8th day of
January 2004 (the day before the day appointed for the hearing
of the Petition).


JOHAN SINGA: Issues Preferential Dividend
-----------------------------------------
Johan Singa Holdings Pte Limited issued a notice of intended
preferential dividend as follows:

Address of Registered Office: Formerly of 150 Orchard Road, #07-
17/18 Orchard Plaza, Singapore 238841.

Court: Supreme Court, Singapore.

Number of Matter: Companies Winding Up No. 303 of 1986.

Last Day for Receiving Proofs: 19th day of December 2003.

Name & Address of Liquidator: The Official Receiver The URA
Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118.

Dated: 5th day of December 2003.

KAREN LOH
Assistant Official Receiver.


LEE PTE: Issues Winding Up Order Notice
---------------------------------------
Lee Pte Limited issued a notice of winding up order notice made
on the 28th day of November 2003.

Name and address of Liquidators: The Official Receiver 45
Maxwell Road #06-11 The URA Centre (East Wing) Singapore 069118.

Dated the 1st day of December 2003.

Messrs RAJAH & TANN
Solicitors for the Petitioner.


MULTI-CHEM LIMITED: Posts Changes in Shareholder's Interest
-----------------------------------------------------------
Multi-Chem Limited issued a notice of changes in Director Foo
Suan Sai's interest:

Name of director: Foo Suan Sai (also a substantial shareholder)
Date of notice to Company: 05 Dec 2003
Date of change of interest: 05 Dec 2003
Name of registered holder: Foo Suan Sai
  
Circumstance(s) giving rise to the interest: Others
Please specify details: Warrants

Information relating to shares held in the name of the
registered holder:  
No. of warrants which are the subject of the transaction:
100,000
% of issued share capital:  
Amount of consideration (excluding brokerage and stamp duties)
per share paid or received: 0.145
No. of warrants held before the transaction: 14,315,000
% of issued share capital:  
No. of warrants held after the transaction: 14,415,000
% of issued share capital:  

Holdings of Director including direct and deemed interest
                                             Deemed      Direct
No. of warrants held before the transaction: 11,481,000
14,315,000
% of issued share capital:   
No. of warrants held after the transaction: 11,481,000
14,415,000
% of issued share capital:   
Total shares: 11,481,000 14,415,000

No. of Warrants
No. of Options
No. of Rights
No. of Indirect Interest


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


THAI MILITARY: Singaporean Bank Plans to Buy 20-30% Stake
---------------------------------------------------------
Singapore's DBS Bank is reportedly among a number of local and
foreign banks eyeing a stake in Thai Military Bank, according to
Dow Jones.

An unnamed director of the bank told the newswire the
Singaporean bank wants a 20-30% stake in the local bank in line
with its plan to increase its presence in Thailand's consumer
and small- and medium-sized business segments.


TPI POLENE: Sets Public Offering January 12-16
----------------------------------------------
Anticipating the return of bullish trades by mid-January,
troubled cement manufacturer, TPI Polene Plc, is scheduling its
long-delayed public offering on January 12-16.

"We are confident the market sentiment will regain bullishness
in that period," Wanchai Manosuthi, president of Tisco
Securities, told Bangkok Post.  Tisco is acting as the financial
adviser and lead underwriter of the transaction.

He said the company's shares were of interest to investors as it
had strong fundamentals and its cement business had good growth
potential in line with the robust economy.  The company earned a
net profit of THB3.8 billion in the first nine months of this
year and projects profits of THB5 billion for the year.


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
                                        Total          
                                        Shareholders   Total  
                                        Equity         Assets   
Company                       Ticker    ($MM)          ($MM)    
-------                       ------    ------------   -------  

CHINA & HONG KONG
-----------------

Guangdong Sunrise Holdings
Co., Ltd.                      000030     (184.24)     23.04
Jinan Qingoi Motorcyle
Co., Ltd.                      600698     (193.08)    113.96
Shenzhen China Bicycles
Co., Ltd.                      000017     (239.91)     60.39
Shenzhen Great Ocean
Shipping Co., Ltd.               200057      (10.87)     11.27
Shenzhen Petrochemical
Industry Group Co., Ltd.       000013     (243.36)     89.48


INDONESIA
---------

PT Lippo Securities  Tbk        LPPS       (3.62)       14.26
Smart Tbk                       SMAR      (37.38)      398.89


MALAYSIA
--------

CSM Corporation Bhd             CSMB        (8.40)      41.55
Faber Group Bhd                 FBMS        (7.16)     504.98
Kemayan Corp Bhd                KOPS      (289.67)     114.38
Panglobal Bhd                   PGL0       (41.07)     187.79
Promet Bhd                      PMPT      (174.45)      50.49
Saship Holdings                 SASH      (168.68)     136.30
Sri Hartamas Bhd                SRIH      (118.91)      99.76
Tongkah Holdings Bhd            TKHS       (78.01)     112.62
Uniphoenix Corporation Bhd      UNI       (145.25)      33.34


PHILIPPINES
-----------

Pilipino Telephone Co          PNOTF     (356.17)      122.97


SINGAPORE
---------

Pacific Century Regional
Developments Ltd                PCEN      (931.65)     7369.85


THAILAND
--------

Datamat PCL                     DTM         (9.53)       13.16
National Fertilizer PCL         NFC        (30.82)      297.40
Siam Agro-Industry Pineapple
And Others PCL                  SAIC       (13.88)       14.02
Thai Nam Plastic PCL            TNPC        (2.00)       24.33
Tuntex (Thailand) PCL           TUN        (26.82)      381.43


Each Friday edition of the Troubled Company Reporter - Asia
Pacific contains a list of companies with insolvent balance
sheets based on the latest publicly available balance sheet
available to our editors at the time of publication.  At first
glance, this list may look like the definitive compilation of
stocks that are ideal to sell short.  Don't be fooled.  Assets,
for example, reported at historical cost net of depreciation may
understate the true value of a firm's assets.  A company may
establish reserves on its balance sheet for liabilities that may
never materialize.  The prices at which equity securities trade
in public market are determined by more than a balance sheet
solvency test.


                            *********


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
Pernites-Lao, Editors.

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

This material is copyrighted and any commercial use, resale or
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                  *** End of Transmission ***