---

       T R O U B L E D   C O M P A N Y   R E P O R T E R

                   A S I A   P A C I F I C

          Thursday, August 29, 2002, Vol. 5, No. 171

                         Headlines

A U S T R A L I A

HIH INSURANCE: US Management Ignores Reserves Warnings
MAYNE GROUP: Posts $173.6M Net Profit
MAYNE GROUP: S&P Comments on 2002 Results
ONE.TEL LTD: Aussie Ops Has $500,000 After Debt Payment
TRANSURBAN GROUP: Expects to Post Profit Next Year


C H I N A   &   H O N G  K O N G

AMY HANDBAGS: Court Sets September Winding Up Hearing
CHINA BICYCLE: Posts Narrowed First-half Loss of CNY29.6M
EXPERT LEADER: Faces Winding Up Petition
GUANGDONG KELON: Confident it Will Get Back Loan From Rongsheng
HONG KONG CONSTRUCTION: Reaches Debt Rehab Agreement With Banks

HYCOMM WIRELESS: Narrows Net Loss to HK$97.822M
UP RIGHT CONSTRUCTION: Winding Up Petition Set for Today
WORLD HOLIDAY: Winding Up Hearing Set on October 30
YIN KWAN: Hearing of Winding Up Petition Set


I N D O N E S I A

BAKRIE & BROTHERS: Returns to Black With US$21.2M Net Profit
BANK INTERNASIONAL: First-half Net Loss Widens to Rp206.402B
HOLDIKO PERKASA: Watchdog Appeals Court Ruling
PERTAMINA: Wins Court Ruling Over Karaha Bodas


J A P A N

ALL NIPPON: Receives First Boeing 767 Freighter
FUJITSU LTD: Enters Agreement With NMS Communications
NIPPON COLUMBIA: Names New Chief
NIPPON MEAT: Aeon Postpones Meat Product Sales
NIPPON MEAT: Considers Spin-Off of Meat Operations

NIPPON MEAT: Launches Nationwide Probe on Meat Packers Beef
NIPPON TELEGRAPH: Launches Joint Tests Targeting Services
NISSHO IWAI: Merges Subsidiaries With Nichimen
SUMITOMO METAL: Selling Interest in L-S E Firm

* Fitch Affirms Ratings of Big Four Japanese Banks


K O R E A

DAEWOO MOTOR: Creditors May Offer $600M in New Loans
DAEWOO MOTOR: Halting Car Operations on Parts Supply Freeze
DAEWOO MOTOR: KDB Aims to Provide W100B Loans to Suppliers
DAEWOO MOTOR: Ministry Orders Recall of 290,000 Cars
HANBO STEEL: Postpones Deadline to Sign Sales Deal

HYUNDAI MOTOR: KFTC Sanctions Carmaker


M A L A Y S I A

AMSTEEL CORPORATION: Unit to Sell 900 Acres Land for MR27.927M
BERJAYA SPORTS: Buys Back 218,000 Shares for RM847,081.92
CHG INDUSTRIES: Revises Rehabilitation Plan
GEAHIN ENGINEERING: Aquamech Seeks Debt Payment of RM37,896.40
HUME INDUSTRIES: HIMB Announces Rights Issue of 250M Shares

LONG HUAT: Announces Winding-up Hearing Delay
MOL.COM BERHAD: Applies for Extension of Time
PLB ENGINEERING: Striking Off Dormant Subsidiary
RENONG BERHAD: Swings Back to Black With UEM Stake Sale
RENONG BERHAD: Putra Disposal Completion Expected by Year-end

SENG HUP: KEB to Acquire SEB Capital
SIME DARBY: Seeks Renewal of Authorization to Buy Back Shares


P H I L I P P I N E S

BOGO-MEDELLIN: Resignation of Director and Officers
MANILA MINING: Director Negel Tamlyn Quits Post
NATIONAL BANK: Lucio Tan Rules Out Merger With Allied Bank
NATIONAL POWER: Government Hires SSB to Arrange Bond Sale

* President Arroyo Condones P18B Loans of Electric Cooperatives


S I N G A P O R E

ASIA PULP: Creditors Accept Less Debt Payment
ACHIEVA LIMITED: Announces Resignation of Director
CHARTERED SEMICONDUCTOR: Likely to Raise Funds in 6-9 Months
FLEXTECH HOLDINGS: Shares Down on Debt Concerns


T H A I L A N D

TPI POLENE: Blames Conflict for Stake-Sale Delay

* DebtTraders Real-Time Bond Pricing


     -  -  -  -  -  -  -  -

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


HIH INSURANCE: US Management Ignores Reserves Warnings
------------------------------------------------------
The United States management of collapsed HIH Insurance has reportedly
ignored repeated warnings that it was carrying insufficient reserves from
which to pay out insurance claims, then fired the actuaries who had voiced
the concern.

The HIH Royal Commission has heard that three different actuaries and a US
insurance regulator warned the company in 1999 and 2000 that its US branch
was under-reserved by tens of millions of dollars.

Finance director Dominic Fodera said the US branch had regularly booked
reserves five per cent below the level recommended by actuarial firm
Milliman and Robertson (M&R), which at June 1999 recommended a reserve of
US$96.8 million. HIH Insurance booked reserves of US$76.3 million.

The Californian Department of Insurance also concluded that HIH's US
operations had been under-reserved by US$60 million in December 1997.

By mid-2000, HIH decided to dump M&R and another actuarial consultant,
Tillinghast, which had reached similar conclusions about reserves.

Mr Fodera said the management felt there were errors in the report and that
they were resolving that and they were responding accordingly.


MAYNE GROUP: Posts $173.6M Net Profit
-------------------------------------
Healthcare and logistics company Mayne Group reported Wednesday a net profit
after tax of $173.6 million for the full year to 30 June 2002.

Before the impact of significant items and amortization of intangibles, net
profit after tax was $218.4 million, a 64 percent increase on the previous
year. Significant items had a net $23.3 million positive impact on the
result.

Normalized earnings per share, excluding the impact of significant items and
amortization of intangibles, declined by 2.6 cents on the previous year to
30.9 cents, and takes into account the significant increase in the number of
shares on issue associated with the Faulding acquisition. Shareholders will
receive a partly franked final dividend of 8 cents per share, making a total
dividend for the year of 14 cents.

Mayne Group Managing Director and Chief Executive Officer, Mr Peter Smedley,
said the company had achieved earnings in line with management expectations
after the change in earnings forecast in April. As subsequently advised to
the market, Mayne had a higher than expected level of tax and amortization,
largely as a result of acquisitions, which was offset by the net benefit of
significant items.

"Mayne is now positioned as the leading health company in Australia, with
businesses in pharmaceuticals, health services and hospitals," Mr Smedley
said.

"This position has been achieved as a result of the substantial business
re-engineering that has taken place in the past two years, and the refining
of Mayne's asset portfolio, including the acquisitions of AHC, Faulding and
QML. Mayne is now in a position to focus on the growth and development of
its broad based business across the health sector.

"The poor result in hospitals in the second half saw a decline in EBITA
margin from 9.5% in the first half to 1.9% in the second half. Management
has put in place a detailed turnaround strategy for this business and is
focusing on a number of initiatives to achieve a reversal in performance."

Underlying EBITDA increased to $447.1 million, up $121.5 million - or 37
percent - on the prior corresponding period. Excluding the contribution of
the Faulding businesses, underlying EBITDA decreased marginally to $316.8
million.

Reported revenue of $4.99 billion was achieved during the period. This
represents a 58% increase in revenue compared to the June 2001 result.
Organic revenue growth in the past year, excluding the contribution of AHC
and Faulding, was 4.4%, driven by the health business, which grew by 10
percent.

Mr Smedley also confirmed that the proposed de-merger of Loomis, the
non-health related logistics business, is on track.

Following an extensive assessment, including a concurrent trade sale
process, the Board believes a de-merger is in the best interests of Mayne
shareholders. Unless a superior and clearly achievable trade sale
alternative emerges in the meantime, the Board envisages that formal
documentation to effect a de-merger will be lodged with relevant regulatory
authorities in late September, with a view to listing Loomis on the
Australian Stock Exchange by the end of the year.

"Logistics has performed to the higher end of management expectations in the
financial year under review and it has responded well to industry
competition, positioning it favorably to begin its future as a stand-alone
listed company," Mr Smedley said.

BUY-BACK

The Company's gearing at the end of the year was 5.1 percent and, following
the acquisition of QML, is expected to increase to around 12 percent. The
low gearing rate has resulted from the Faulding acquisition, which was paid
for predominantly in scrip. This has now prompted the Company to announce an
on-market buy-back program of up to 75 million shares, which is less than 10
percent of shares on issue. The scale of the buy-back will potentially bring
the Group's gearing towards 20 percent, while delivering value to
shareholders. The on-market buy-back program will commence after the
documentation relating to the de-merger is lodged with the ASX. Mayne has
appointed UBS Warburg and JB Were to act on the Companys behalf in respect
of this buy-back program.

PHARMACEUTICALS

Mayne Chief Executive Officer-elect, Mr Stuart James, said the generic
pharmaceuticals manufacturing and marketing business had continued its
strong growth internationally and had a robust product pipeline for key
products in major markets.

"Reported EBIT from pharmaceutical products for the nine-month contribution
since the Faulding acquisition took effect in October, including the impact
of goodwill amortization, was $44.2 million. The contribution before the
impact of goodwill was $71.2 million," he said.

"The result in the Americas has been particularly pleasing, largely due to
the launch of the oncology drug pamidronate, as it increases our presence in
the world's largest pharmaceuticals market.

"There are 11 new generic products pending approval across our major
markets - which are the UK, Australia, Canada and US - with a total branded
product market value of around US$0.7 billion, based on IMS data for the
year ended 30 June 2002. "Continuing an active product pipeline for the
pharmaceuticals business will be a priority for the group, ensuring we
maintain our leading position in key global markets in our specialty product
areas.

"Our consumer products business grew revenue by approximately 4% year on
year as the vitamin and mineral supplement category continued its recovery
from the previous year, and sales were boosted by the introduction of new
products in both Australia and the US. EBITDA margins were down as a result
of expensing costs that were previously capitalized by Faulding but margins
are expected to increase as operational efficiencies are extracted from new
manufacturing facilities.

HEALTH SERVICES

"The pharmacy services business has maintained its market leadership
position and overall brand participation rates, not withstanding integration
risks. Margins have remained strong even though some of the pharmaceutical
sales from Salisbury have been reclassified into the pharmaceuticals
business. We recently launched a new product and service package to
pharmacists that will draw on our total expertise in the health sector,
which received a positive reception.

"In pathology, total episodes increased by 3.7%, to 5.11 million, in the
last 12 months and revenue increased by 1.5% despite fee cuts. Performance
in Victoria and WA continued to be strong, and NSW is now showing episode
growth following business improvements and key senior appointments.

"In diagnostic imaging a number of acquisitions and the rationalization of
sites continued to change our examination mix towards a higher modality, so
while the number of examinations remained flat, revenue was up 9 percent and
the EBITA margin increased by 38 percent over the previous year.

"Revenue from Mayne's medical centres more than doubled in the last 12
months, primarily driven by acquisition growth, and now management's focus
will be on using the scale of the network to generate operating
efficiencies.

HOSPITALS

"The number of hospital admissions decreased by 10.8 percent on December
2001, to 266,000, which resulted from the undertaking Mayne had given to the
ACCC to divest four AHC Hospitals, and a loss of market share due to
diminished focus at individual hospital level. Excluding the divested
hospitals, admissions were down 4 percent.

"EBITA margin in hospitals declined from 8.8% in 2001 to 5.7% in
2002, primarily attributable to the combination of a high fixed cost base
and lower levels of occupancy.

"The new Hospitals management team is concentrating on restoring
relationships with doctors and improving the management of costs at each
hospital, particularly nursing labour costs which have risen during the past
year, including a high use of agency nurses.

"Insurance costs increased by more than 50% in the 2002 financial year, a
reflection of significant sector-wide rises, however, the full impact of
rising medical insurance is not expected to fully impact until 2003. The
reduction in margin on prostheses also impacted the cost base.

"Response to the new Hospitals management has been positive, with the June
quarter showing a 7 percent increase in admissions on the March quarter, a 5
percent increase on the previous June quarter.

LOGISTICS

"In the logistics division, significant operational improvements have
largely offset the effects of competitive pressure in a challenging
operating environment. Revenue was flat against last year, reflecting the
downward pricing trend, however, there was a 3 percent improvement in
earnings.

"The contract and express operations in Australia and Asia reported total
revenue of $673.9 million, marginally lower than 2001. Margins in this
business were impacted by unfavorable economic conditions, higher freight
costs after the Ansett collapse, and the loss of the contract with
Paperlinx, however, the business achieved strong growth in the Asian region
where it won and retained a number of blue-chip customers.

"In cash logistics, revenue was down 4% on 2001, totaling $221.2 million.
Margin for cash logistics reduced in 2002, reflecting the impact of the
redistribution of work from the Cash Services Australia tender, however,
management has successfully diversified revenue generation into new business
streams and concentrated on efficiency improvements.

"The EBIT contribution by Mayne Logistics Loomis in Canada was $21.5
million, 42 percent above the previous year, despite revenue being impacted
by generally poor North American economic conditions and the repercussions
of September 11. Loomis' EBITA margin of 6.4 percent was 200 basis points
above 2001, reflecting operational efficiencies at the distribution hubs
that were commissioned in 2000 and automated in 2001."

STRATEGIC FOCUS

Mr Smedley said Mayne was now in better shape, strategically, operationally
and financially, than it was two years ago.

"Today, the company has a more capable balance sheet and the share buy-back
program will improve balance sheet efficiency.

The proposed de-merged logistics provides stronger strategic clarity and,
going forward, Mayne's clear focus will be directed to developing long term
strategies to leverage its diverse capabilities across the health sector."

For investor inquiries, contact Cameron Fuller at telephone 03 9868 0968, or
mobile 0417 338 953.


MAYNE GROUP: S&P Comments on 2002 Results
-----------------------------------------
Ratings agency Standard & Poor's said Wednesday that Mayne Group Ltd.'s
(BBB-/A-2) fiscal 2002 financial results were in line with the company's
revised forecasts.

S&P said that the results, compared with those for previous years, continues
to be complicated by the financial impact of acquisitions and asset sales,
given the impact of goodwill and restructuring costs.

S&P's negative outlook on Mayne reflects the challenges faced by the company
in implementing a successful strategy for improving the performance of its
hospital division and generating cash flows.


ONE.TEL LTD: Aussie Ops Has $500,000 After Debt Payment
-------------------------------------------------------
The probe continues on the collapse of One.Tel Ltd with former company
secretary Steve Hodgson on the stand. Mr. Hodgson revealed during a
liquidator's inquiry that there was only $500,000 in the Australian bank
account after creditors bills were paid.

In the inquiry, Mr. Hogson said he spoke with joint managing director Jodee
Rich on February 27, 2001 and explained that One.Tel Ltd's Australian
operations needed an urgent injection of $26 million from the group's United
Kingdom business in February 2001 to cover creditors bills that had to be
paid on March 1 and 2.

The inquiry heard that a flash report to directors just days after the
transfer did not mention the cash injection or the Australian business' bank
balance.

One.Tel Australia only had $3.5 million in the bank at the end of February,
before the transfer, and was only due to receive $4.5 million inflow at the
same time, for a total of $8 million.

Mr. Hogson added there was $33.5 million due in bills to be paid on March 1
and 2, including $10-12 million to Lucent Technologies and $12 million to
carriers, including $4 million to Telstra.

In addition to needing the urgent transfer, One.Tel Australia's cash inflow
for February was $37 million worse than management had predicted it would be
only a month earlier, he said.

One.Tel folded in June 2001 with debts of more than A$600 million.


TRANSURBAN GROUP: Expects to Post Profit Next Year
--------------------------------------------------
Citylink operator Transurban, which posted a loss of $137.6 million this
year, claims to have smoothed the road to profit for next year with
legislated toll increases, "locked in" costs and a revamp of the lending
structure.

Transurban requires further funds for the refinancing of the group's debt,
which will now save debt servicing costs of $75 million this year and $200
million over the life of the concession.

Operating revenues, which included a full year of the Burnley tunnel for the
first time, lifted 42 percent to $191.9 million.

Transurban has overcome its customer service center problems, allowing a 21
percent reduction in call center expenses. The company also expects income
gains from higher customer use of the tollway and legislated increases in
the tolls themselves.

Transurban reported a loss of $114.4 million in the previous year.


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


AMY HANDBAGS: Court Sets September Winding Up Hearing
-----------------------------------------------------
Cheung Mei Yee Joey is seeking for the winding up of Amy Handbags
Manufacturing Limited.

The petition was filed on July 3, 2002, and will be heard before the High
Court of Hong Kong on September 25, 2002 at 9:30 a.m.


CHINA BICYCLE: Posts Narrowed First-half Loss of CNY29.6M
---------------------------------------------------------
Shenzhen China Bicycle reported a net loss of CNY29.6 million for the first
half of the year ending June 30, against a net loss of CNY58.3 million for
the previous year.

The Company also posted a pretax profit of -29.8 million yuan for 2002
from -58.3 million in 2001.

It did not report any dividend since 2001.


EXPERT LEADER: Faces Winding Up Petition
----------------------------------------
Wong Yiu Man of No. 320D, Lower Wo Che Village, Shatin, New Territories,
Hong Kong is seeking for the winding up of Expert Leader Industrial Limited.

The petition was filed on July 4, 2002, and will be heard
before the High Court of Hong Kong on September 25, 2002 at
9:30 a.m.


GUANGDONG KELON: Confident it Will Get Back Loan From Rongsheng
---------------------------------------------------------------
Guangdong Kelon Electrical Holdings Co Ltd is confident it will get back a
loan of 312 million yuan from its former major shareholder Guangdong Kelon
(Rongsheng) Group Co Ltd (GKG), the Hong Kong Economic Times reported.

Chairman Gu Chu Jun said the company did not make a provision to cover the
loan as a result.

He said GKG will give its brand names "Kelon" and "Rongsheng" to Guangdong
Kelon Electrical to partially settle the debt.

Gu did not disclose whether the two companies have reached any debt
agreement.


HONG KONG CONSTRUCTION: Reaches Debt Rehab Agreement With Banks
---------------------------------------------------------------
Hong Kong Construction (Holdings) Ltd has entered into debt restructure
agreements with its banks following eight months of negotiations.

According to an AFX Asia report, Hong Kong Construction's long-stop date for
entry into formal documentation of the agreements is December 31.

In July, Hong Kong Construction said the company and some of its
subsidiaries owe a total of HK$1.6 billion.


HYCOMM WIRELESS: Narrows Net Loss to HK$97.822M
-----------------------------------------------
Hycomm Wireless Ltd reported a net loss of HK$97.822 million for the year to
March, against a loss of HK$327.182 million the previous year.

Operating loss was recorded at HK$84.178 million from HK$197.776 million, on
sales of HK$53.4 million in 2002 and HK$165.368 million in 2001.

Hycomm Wireless' loss per share was recorded at 6.61 cents for this year.


UP RIGHT CONSTRUCTION: Winding Up Petition Set for Today
--------------------------------------------------------
The date for hearing of the petition to wind up Up Right Construction
Company Limited is scheduled for October 9 at 9:30
a.m. at the High Court of Hong Kong.

Sin King Lun of Room 825, Lai Fu House, Lai Kok Estate, Sham Shui Po filed
the petition on July 11.


WORLD HOLIDAY: Winding Up Hearing Set on October 30
---------------------------------------------------
The petition to wind up World Holiday Limited is set for hearing
before the High Court of Hong Kong on September 4, 2002 at 9:30 am.

Koon Pui Chi, whose registered office is at Room 1816, Kwong Yee House Kwong
Fuk Estate, Tai Po, New Territories, Hong Kong, filed the petition with the
court on June 11, 2002.


YIN KWAN: Hearing of Winding Up Petition Set
--------------------------------------------
The petition to wind up Yin Kwan Limited is set for hearing before the High
Court of Hong Kong on September 25, 2002 at 9:30
am.

Ng Tuen Chun, located at Room 1337, Block 11, Shek Lei (II) Estate, Kwai
Chung, New Territories, Hong Kong, filed the
petition with the said court on July 4, 2002.


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


BAKRIE & BROTHERS: Returns to Black With US$21.2M Net Profit
------------------------------------------------------------
Steel pipe producer PT Bakrie & Brothers Tbk has returned to profitability
in the first half of this year with a net profit of Rp188.19 billion
(US$21.2 million) against a net loss of Rp187.27 billion in the same period
last year.

A financial report of the company and its subsidiaries showed that gain on
foreign exchange and a decline in interest cost contributed largely to the
improved financial performance.

Bakrie & Brothers' short-term debts have been reduced to Rp1.01 trillion
from Rp9 trillion. Its long-term debts were reduced from Rp2.45 trillion to
Rp1.53 trillion.


BANK INTERNASIONAL: First-half Net Loss Widens to Rp206.402B
------------------------------------------------------------
PT Bank Internasional Indonesia for the six months to June 2002 reported a
net loss of 206.402 billion rupiah from a loss of 179.185 billion rupiah in
the previous year.

Operating loss was recorded at 221.172 billion rupiah against a loss of
196.629 billion rupiah.

The results were unaudited.

As of June 30, Bank Internasional Indonesia's capital adequacy ratio was
negative 55.43 percent from positive 16.03 percent a year earlier, falling
below the central bank's minimum 8 percent requirement.

Bank Internasional Indonesia, previously the largest private bank
pre-crisis, is the now the fifth largest bank in Indonesia. The founding
Sinar Mas group (Widjaja family) lost control of the bank during the crisis
when related party, Asia Pulp & Paper, defaulted on its loans to the bank.


HOLDIKO PERKASA: Watchdog Appeals Court Ruling
----------------------------------------------
Anti-monopoly commission chairman Syamsul Maarif said they have appealed to
the Supreme Court to overturn a lower court ruling that holding firm PT
Holdiko Perkasa had not violated competition laws over the sale of a
domestic car maker.

Earlier this month, the South Jakarta Court said Holdiko, which holds more
than 100 companies of the debt-laden Salim Group, had not violated the laws
over the sale of PT Indomobil Sukses International, once owned by Salim.

Holdiko officials could not be immediately reached for comment.

The anti-monopoly commission, or KPPU, fined Holdiko and several other local
firms a total of $30 million nearly three months ago over the 72.63 percent
stake sale of Indomobil.

KPPU investigated the Indomobil sale after widespread suspicion the Salim
Group, the largest debtor to the government following bail-out efforts
during the economic crisis of the late 1990's, might be behind the bidders.

Debtors are prohibited from buying back their assets.


PERTAMINA: Wins Court Ruling Over Karaha Bodas
----------------------------------------------
The Central Jakarta District Court today set aside a $261 million award that
Pertamina had been ordered to pay to former business partner Karaha Bodas
Co. L.L.C. (KBC) in an arbitration in December of 2000.

"This is important confirmation that the arbitration award was fundamentally
flawed," said Matthew D. Slater of the Washington, D.C., office of Cleary,
Gottlieb, Steen & Hamilton, Pertamina's attorney. "Under the treaty that
applies to international arbitration awards, the Jakarta court's decision
should be respected in other countries in which KBC is seeking to enforce
the award."

Pertamina, Indonesia's oil and gas enterprise; PT PLN (Persero),
Indonesia's electric utility; and KBC, a Cayman Islands shell company
controlled by Florida-based FPL Group and Caithness Energy L.L.C. of New
York, signed agreements in November 1994 for a geothermal project in West
Java, Indonesia. The project was suspended by the Indonesian Government in
January 1998, under pressure from the International Monetary Fund, because
of the country's crippling economic problems and as a condition of IMF
economic assistance.

"Based on the parties' agreements, the Indonesian courts have a
supervisory responsibility for the arbitration, which the Jakarta court took
seriously and executed fairly, giving KBC ample opportunity to present its
case," said Mr. Slater.

At the time of its suspension, the KBC project was still in the
exploration and development phase, and no plant had been built.  The bulk of
the $261 million award that the Jakarta court set aside today was for
assumed future profits from generating capacity that had never been
constructed, contracted, or paid for by KBC.

After the Government suspended the project, KBC immediately took the issue
to arbitration in Switzerland. The contracts by their terms are governed by
Indonesian law and are subject to Indonesian arbitration law.

The Swiss arbitral panel failed to follow the procedures for arbitration
agreed to by KBC, Pertamina, and PLN in their contracts. The panel also
exceeded its power by failing to follow Indonesian law for lost profits and
by failing to recognize force majeure, since the suspension of the project
at IMF insistence was a circumstance beyond Pertamina's or PLN's control. In
addition, by penalizing Pertamina and PLN for adhering to Indonesian law,
the award violated Indonesian public policy.

Although Pertamina has disputed any liability for the project's suspension,
the company has offered to negotiate an amicable resolution, which KBC has
categorically rejected. KBC has brought lawsuits in the United States,
Canada, Hong Kong, and Singapore seeking to enforce the award, which
Pertamina is resisting. The only other court that has considered the merits
of whether to enforce the award is in the United States, and its decision is
currently on appeal. Under relevant international law, the Jakarta court's
decision should now be respected in other countries and enforcement of the
award should be declined.

For inquiries, contact Bob Conrad of Potomac Communications Group at
telephone +1-202-466-7391 ext. 1123.


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


ALL NIPPON: Receives First Boeing 767 Freighter
-----------------------------------------------
All Nippon Airways (ANA) accepted Tuesday its first Boeing 767-300 Freighter
at a festive delivery ceremony accented by Japanese Taiko drummers playing
on the new airplane's main deck. For the ceremony, the freighter was parked
nose-to-nose with a new ANA 767-300ER (extended range) passenger plane,
which is the next airplane scheduled for delivery to the airline.

The new 767 Freighter is the first all-cargo airplane in the ANA fleet and
will enable the carrier to increase its focus on the Asian air freight
market, the fastest-growing the world. It is powered by twin GE Aircraft
Engines' CF6-80C2 engines. The CF6-80C2 has logged more than 75 million
flight hours in service.

"We have always had great confidence in Boeing airplanes," said Yoshiyuki
Nakamachi, senior executive vice president -- All Nippon Airways. "We are
certain that this new 767 Freighter is the beginning of another success as
we take this strategic step into the air cargo market."

The 767 Freighter has a capacity of more than 16,000 cubic feet (450 cubic
meters) of cargo volume, and the ability to carry approximately 60.5 tons
(54.88 metric tons) of revenue payload more than 3,270 nautical miles (6,056
kilometers). The 767 Freighter features a large cargo door on the main deck
of the forward fuselage and a single crew-entry door.

"This new freighter is a symbol of our great relationship with All Nippon
Airways," said Larry Dickenson, senior vice president, Sales -- Boeing
Commercial Airplanes. "ANA helped launch both the 777 and 767 families, and
we are confident that their first 767 Freighter will expand this important
partnership toward new horizons."

Zone temperature controls onboard the 767-300 Freighter allow ANA to
transport a wide array of cargo on each flight. For instance, perishables
can be transported at cold temperatures in one part of the airplane while
livestock such as racehorses can be transported at warmer temperatures in
another section. The 767's automated cargo loading system, which involves a
moveable floor similar to a conveyor belt, enables ANA to load and unload
cargo quickly and easily.

The 767-300 Freighter is based on the popular 767-300ER passenger twinjet
and benefits from the 767's established schedule reliability, performance
and operational advantages. Schedule reliability -- an industry measure of
departure from the gate within 15 minutes of scheduled time -- is nearly 99
percent for the 767.

All Nippon Airways is a component of the ANA Group, which currently operates
a total of 137 Boeing jetliners, including 34 747s, 21 777s, 55 767s and 27
737s.

The ANA 767 fleet is the largest in Asia, which increases to 56 airplanes
with the new freighter, and includes eight 767-200s, 34 767-300s and 13
767-300ERs. The carrier has operated 767 models since its first 767-200
delivery in April 1983. This is the 74th 767 to be delivered to ANA. The ANA
Group also includes Air Nippon and Nippon Cargo Airlines.

The 767's design provides excellent fuel efficiency, operational
flexibility, low noise levels and modern airplane systems, including an
advanced all-digital flight deck. Carriers throughout the world have ordered
a total of 934 767s of all models.

TCR-AP reported in July that All Nippon posted a net loss of 9.5 billion yen
for the year ended in March, the airline's fourth annual loss in five years.

For inquiries, contact Boeing Commercial Airplanes' Bob Saling at telephone
+1-206-766-2914, or +1-206-852-3327 (cell) or via e-mail at
bob.saling@boeing.com. One may also contact Vicki Ray at telephone
+1-425-294-6101, or via e-mail at vicki.l.ray@boeing.com.


FUJITSU LTD: Enters Agreement With NMS Communications
-----------------------------------------------------
Fujitsu Limited and NMS Communications announced Monday that they have
jointly developed a wireless video gateway system for distributing
multimedia content from the Internet to handsets supporting the IMT-2000
third-generation mobile communications protocol. Fujitsu's new system,
called GeoServe SDS, can deliver a live or stored audio and video stream to
multiple 3G mobile handsets (either 3GPP or 3G-324M compliant)
simultaneously. The system opens up many possibilities for new mobile
solutions that increase carrier revenues. Content applications can encompass
a wide range of personal or business uses, from news and entertainment
delivery to accessing company data, live security monitoring, and more.

In developing GeoServe SDS, Fujitsu incorporated NMS' Convergence
Generation(TM) media streaming platform into Fujitsu's PRIMEPOWER(TM)
server, and both companies developed application software. In addition,
Fujitsu used its own streaming distribution software for the streaming
system that ties in with the gateway system. The software distributes live
or archived media over the network and provides large-scale, stable
streaming capability and excellent real-time performance.

NTT DoCoMo is using the new gateway system for its pathbreaking FOMA
video-streaming service, called V-Live. This service transmits both live and
archived video to mobile handsets (PDAs, FOMA phones).

GeoServe SDS carries out protocol conversion not only via software running
on a UNIX server but with a dedicated board for hardware processing,
achieving optimal packet-processing performance eliminating gateway system
streaming distribution bottlenecks. Leveraging Fujitsu's technological
expertise in servers and network construction for delivering broadband
services, and NMS' industry standards-compliant audio-video technology for
mobile handsets, the companies were able to develop a high-speed,
high-quality wireless video gateway system in a very short time frame and
provide products for a nationwide carrier service. The collaboration has
also enabled NMS to quickly launch its platform and solutions business in
the Asian market.

"Fujitsu is proud that our GeoServe SDS has been used to realize IMT-2000
(3G) network-delivered multimedia information distribution services from an
early stage," said Michitaka Nohda, general manager of Fujitsu's Network
Systems Group, Network Service Solutions Division. "This system will help
carriers, services providers, and content providers offer new types of
image-based services. Moreover, we are currently developing new services
such as video conferencing and video archives for mobile Internet
environments, and we intend to contribute to the expansion of mobile
Internet services."

"NMS is privileged to work jointly with Fujitsu on this advanced gateway for
wireless video, which achieves the video streaming performance, high-density
design, and standards compliance needed for a successful service. We look
forward to continuing our partnership with Fujitsu with the carrier-ready
solution they need as they offer new multimedia services for mobile Internet
environments," said Gerrold Walker, vice president and general manager of
NMS' Platform Solutions business.

Fujitsu and NMS plan to expand this technology to support bi-directional
video transmission and multiplexed coding, thereby offering additional new
services to wireless service providers.

** NMS Communications and Convergence Generation are trademarks of NMS
Communications Corporation. All other product or corporate references may be
trademarks or registered trademarks of their respective companies.

Fujitsu is a leading provider of customer-focused IT and communications
solutions for the global marketplace. Pace- setting technologies,
high-reliability/performance computing and telecommunications platforms, and
a worldwide corps of systems and services experts make Fujitsu uniquely
positioned to unleash the infinite possibilities of the broadband Internet
to help its customers succeed.

NMS Communications designs, delivers, and supports technology-leading
systems and system building blocks for innovative voice, video, and data
services on wireless and wireline networks. The world's top communications
equipment suppliers, solution developers, carriers, and network operators
trust NMS to help them bring applications and services to market faster and
at lower costs.

Headquartered in Framingham, Massachusetts, with offices around the world
and products deployed in over 90 countries, NMS has a record of technology
innovations that have advanced the growth of the global communications
industry.

TCR-AP reported that Fujitsu reported a first quarter consolidated operating
loss of 29.0 billion yen (US$242 million), an improvement of 13.3 billion
yen over the operating loss recorded during the corresponding quarter of the
previous fiscal year. Due in part to costs associated with continuing
restructuring efforts, the Company posted a net loss for the period of 56.4
billion yen (US$470 million), compared with a net loss of 55.4 billion
during the corresponding period last year.

For inquiries, contact Ayami Shigematsu or Scott Ikeda, Fujitsu Limited
Public & Investor Relations, at telephone +81-3-3215-5259, fax
+81-3-3216-9365 or e-mail pr@fujitsu.com. One may also contact Taeko Morioka
of NMS Communications at telephone +81-3-5325-5591 or e-mail at
taeko.morioka@nmss.com.


NIPPON COLUMBIA: Names New Chief
--------------------------------
Nippon Columbia Co. has appointed Masao Nakajima as the successor of its
former President Katsumi Matsumura, who passed away a week ago, the Japan
Times reported Wednesday.

Nakajima joined Nippon Columbia earlier this year as the Executive Vice
President in charge of sales and marketing.

The Company has been restructuring its operations with the aid of Ripplewood
Holdings LLC, which owns roughly 35 percent of the music entertainment firm.

TCR-AP reported that the financially troubled music entertainment firm
posted a consolidated net loss of Y520 million and a pretax loss of Y458
million for the fiscal first half ended September 30, 2001.


NIPPON MEAT: Aeon Postpones Meat Product Sales
----------------------------------------------
Supermarket operator Aeon Co. decided to postpone selling products of Nippon
Meat Packers Inc. for now, Kyodo News reported Wednesday.

According to TCR-AP, in-house investigations have proven that five more
branches of its unit, Nippon Food, mislabeled an additional 3.7 tons of
imported beef in addition to the three known branches at Himeji, Ehime and
Tokushima.


NIPPON MEAT: Considers Spin-Off of Meat Operations
--------------------------------------------------
Nippon Meat Packers Inc. is considering a plan to spin off its meat
operations, which have been at the center of a beef mislabeling scandal that
recently sparked a retailer boycott, the Nihon Keizai Shimbun reported.

Nippon said its founder and chairman will retire to take responsibility for
a mislabeling scandal that has sparked a retailer boycott.

The company is eyeing a shift to a holding company structure that would
place the ham, sausage and processed products as well as beef operations
under its umbrella, it said. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue
No. 170, August 28, 2002)


NIPPON MEAT: Launches Nationwide Probe on Meat Packers Beef
-----------------------------------------------------------
Japan launched a nationwide probe into the origin of beef at Nippon Meat
Packers Inc., after a mislabeling beef fraud, AFP reports.

The Ministry of Agriculture, Forestry and Fisheries searched beef storage at
Nippon Food Inc. to see if all the beef the Nippon Meat Packers unit
submitted to a state-run meat buyback scheme was produced from domestic
cattle.

The scheme was created in October to help farmers get rid of surplus beef
after a mad cow scare led to decline in beef sales. Imported beef is not
covered by the scheme.

Nippon Food submitted 142.8 tons of beef for the buyback scheme in November
and received 100 million yen (840,000 dollars) in government subsidies.
Nippon Meat Packers said 4.8 tons of the total were labeled imported beef.

A ministry said the government would investigate the origin of all the 142.8
tons of beef.


NIPPON TELEGRAPH: Launches Joint Tests Targeting Services
---------------------------------------------------------
Kokuyo Co., Ltd. (President: Akihiro Kuroda), and Nippon Telegraph and
Telephone Corp. (President: Norio Wada) will conduct joint tests of a shared
PC system that will provide users with a safe, reliable, convenient, and
comfortable operating environment. The system, which will be tested for
three months starting from September 2, will enable users to quickly
recreate PC environments with personalized settings for Shared-use PCs (such
as those operating in a short-term rental locations) simply by carrying an
IC card.

Background and goals of joint tests

In 1998, Kokuyo began operating a rental space called "DESK@" (see
Attachment 1), which offers an IT environment where businessmen on the move
can rent working space by the hour. Since then, based on user needs for
expansions in mobile working environments and other infrastructures and for
reductions in office costs, the company has been investigating ways of
setting itself apart in terms of service content. Since April of last year,
it has been expanding the scale of its outlets based on the concept of
"providing venues that support the intellectual activities of
businesspersons in a ubiquitous society."
The NTT Group, meanwhile, has been promoting research and development on the
theme of "Ubiquitous Services(*1)" as one of the main pillars that will
support telecommunications services in the 21st century. An important
element of ubiquitous services is that services must overcome the
limitations of space, and must be accessible from any location. NTT Cyber
Solutions Laboratories (NTT Labs) have been promoting R&D in Shared PC
systems, one of the methods of making these services a reality.

In the joint tests, Kokuyo will verify the potential for Shared PC systems
as a new part of DESK@'s service menu targeting businesspersons who prefer
not to walk around carrying a PC with them. NTT Labs will verify numerous
technical aspects of the Shared PC system, including operating environments
and security functions, and will investigate the need for new functions in
the future.

Outline of tests

In these tests, the Shared PC system will be installed in two business
rental spaces--"DESK@ Shinbashi" and "DESK@ Tokyo" (see Attachment 2).

In the early stages of the tests, current DESK@ members will act as
monitors; use of the system will be expanded in November to included the
general public. Persons wishing to become monitors can apply to participate
via the DESK@ homepage (http://www.kokuyo.co.jp/desk/index.html).Monitors
will be issued an IC card for use with the shared PCs, which will enable
them to use the Shared PC system.

Features of the Shared PC system

(1) Create a PC environment with your own personal settings simply by
inserting an IC card

Simply by inserting a dedicated IC card and entering a password, the user
can automatically recreate a PC environment on the PC being operated using
personalized settings stored on a server.

(2) Powerful security enables safer, more reliable PC environments.

The system achieves a high-security PC roaming(*2) environment--the user's
identity is authenticated using the IC card and the password, and the user's
data contents and environment settings are stored on the server in an
encrypted format using a key that is read off of the IC card, so even the
server administrator cannot access those contents. After the work is
complete, the data is automatically erased from the hard disk, so the user's
data and setting environment are not left behind.

(3) Video chatting and smooth playback of video files and other media.

Video chatting and other multimedia applications can be operated smoothly on
high-performance client PCs.

Plans for the future

In order to maintain an understanding of usage status, both companies will
conduct evaluations and analyses of performance aspects through surveys
targeting monitors as well as evaluations of system performance as part of
continued efforts to pursue greater convenience for users.

*1 Ubiquitous services
The term "ubiquitous"--derived from the Latin word for "everywhere"--means
"to be everywhere at the same time." Recently, it has come to be used to
describe applications and services that are accessible from any location, as
in the case of "ubiquitous computing" and "ubiquitous networks." NTT has
named "optic software services" and "ubiquitous services" as the two main
pillars of its operations in the context of telecommunications services for
the 21st century. By establishing mutual connections not only between users
but among a wide range of devices via networks, ubiquitous services enable
users to enjoy safe, reliable, convenient, and comfortable services anytime
and anywhere.
*2 PC Roaming

A function that uses IC cards and networks to support PC environments with
personalized settings regardless of the usage location or usage style.

Reference

1. Desk@ locations:
DESK@Tokyo: 1-9-1 Marunouchi, Chiyoda-ku, Tokyo
Inside Tokyo Station, near Yaesu North Exit
TEL: 03-5293-9450

DESK@Shinbashi: 1-10-2 Shinbashi, Minato-ku, Tokyo
Sumitomo Seimei West Shinbashi Bldg., 1F/B1
TEL: 03-3500-3300

DESK@Koubou Otemachi: 2-6-2 Otemachi, Chiyoda-ku, Tokyo
Nihon Bldg., B1
TEL: 03-5205-2181

2. Outline of operations:
Hourly rental of office space; business support services; printing services

3. Main services:
- Hourly rental of workspace (in 30-min. increments)
- Open seating for simple work (350 yen / 30 min.*)
- Open seating for work with documents or mobile devices (650 yen / 30 min.)
- Private workrooms, for when you need to concentrate (750 yen / 30 min.)
- Meeting rooms (starting at 1,300 yen / 30 min.)
- All prices are member prices.

Prices for visitors are:
Open seating: 500 yen
booths: 1,000 yen
private rooms: 1,200 yen

"DESK@" can be used by individuals or companies.
*Become a member to enjoy special member's prices.
Memberships:
-Private:
New membership: 10,000 yen
renewal: 5,000 yen
-Corporate:
New membership: 50,000 yen
renewal: 25,000 yen)

(Non-members can also use DESK@ services)
- Services to support mobile computing work, PC rental, FAX, mailboxes, copy
services, etc.
- Printing services (only available at DESK@Koubou Otemachi) Large-volume
copying, business cards, postcards, envelopes, bookbinding, address labels,
etc.

4. Opening date
DESK@Tokyo October 1998
DESK@Shinbashi December 2001
DESK@Koubou Otemachi March 2002

5. Business hours
DESK@Tokyo, Shinbashi: Mon. - Fri., 9:00 a.m. - 9:00 p.m.
Sat. 10:00 a.m. - 6:00 p.m.
DESK@Koubou Otemachi: Mon. - Fri., 9:00 a.m. - 9:00 p.m.

Nippon Telegraph and Telephone Corporation - www.ntt.com/index-e.html - was
established in 1952 as a state-owned telecommunications public corporation
and in 1986 converted to a private company to be the largest
telecommunications company in Japan and the second largest in the world. NTT
and its subsidiaries provide a wide range of telecommunications services.

Kokuyo Co., Ltd. - www.kokuyo.co.jp/ - is a manufacturer and marketer of
stationery and office equipment/furniture and related distribution, research
and other services, through the following segments; STATIONERY (notes,
albums, binders, forms, pencils); FURNITURE (desks, tables, chairs,
cabinets, lockers). Furniture for Office-Use accounted for 53% of fiscal
2001 revenues and stationery, 47%.

For further information, please contact:

Kokuyo Co., Ltd.; PR Dept.
Tokyo PR Group; Mr. Ono
TEL: 03-3474-6324
e-mail: masaki_ono@kokuyo.co.jp

Nippon Telegraph and Telephone Corp.
NTT Cyber Solutions Laboratories
PR Section; Yamashita / Hagino
TEL: 0468-59-2032
e-mail: ckoho@tamail.rdc.ntt.co.jp


NISSHO IWAI: Merges Subsidiaries With Nichimen
----------------------------------------------
Nissho Iwai Corp and Nichimen Corp said they have agreed to combine
subsidiaries Nichimen Chemicals and Nissho Iwai Chemical under a newly
created holding company, Global Chemical Holdings Inc, by October 2003.

Nichimen will transfer chemical operations, including basic chemical
materials, such as bentonite, industrial salt, and chemical products like
cosmetic materials and food additives, into GHC.

Nissho Iwai will transfer production of agricultural chemicals, synthetic
fiber materials and polyvinyl chloride to GHC.

Last year, Nissho Iwai suffered from a very weak financial profile,
characterized by high debt-usage and very weak financial flexibility caused
by its heavy reliance on short-term bank borrowings, TCR-AP reports. The
firm has total debts of Y2.4 trillion at the end of September 2001.


SUMITOMO METAL: Selling Interest in L-S E Firm
----------------------------------------------
Sumitomo Metal Industries, Ltd. (SMI) has agreed to sell its entire interest
in L-S Electro-Galvanizing Company (L-S E) to AK Steel Company (AK), as
follows.

1.Interests to be sold:

SMI will sell its 40% share in L-S E and International Steel Group (ISG),
who has purchased LTV Corp's interest in L-S E in March 2002., will sell 20%
out of its 60% share of the interest. After this transaction, AK will have
60% and ISG will retain 40%.of the interest in L-S E

2.Date of the Transaction: August 23, 2002

3.Background:

After LTV terminated its steel operation in December 2001, SMI and ISG have
studied the ways for L-S E to survive and found AK as a good purchaser for
the interest in L-S E. AK has been one of the largest suppliers to the auto
industries and wanted to expand its electro-galvanizing capacity.
Transfer of the technology from SMI to L-S E has been substantially
completed and we have accomplished our mission to create an operation to
supply quality EG products to the U.S. customers.

4.Cash flow effect for SMI:
This transaction will bring SMI a positive cash flow effect of roughly $30
million, including the proceeds from the sale of the interest and
distribution from L-S E that has been suspended due to the bankruptcy of
LTV.

Now SMI's restructuring of US operations in response to the bankruptcy of
LTV has completed by this transaction. SMI group is going to concentrate in
downstream business such as parts manufacturing and steel products
fabrication for auto industries.

SMI Group's US Operations for the auto industries
-Seymour Tubing, Inc.: Sales/Production/fabrication of Steel pipes and tubes
-International Crankshaft, Inc.: Sales/Production of forged crankshafts
-Indiana Precision Forge, L.L.C.: Sales/Production of cold-forged auto parts

L-S E - History
-Established as a joint venture between LTV(60%) and SMI(40%) in 1985.
-Use SMI's electro-galvanizing technology to serve US customers with quality
products.
-LTV had been supplying the substrates to L-S E and selling the coated
products mostly to General Motors and Ford Motors, especially after Japanese
transplants have switched from electro-galvanized sheets to
hot-dip-galvanized products.
-After LTV terminated its steel operation, L-S E has been toll coating for
the other integrated steel companies.

Sumitomo Metal Industries, Ltd. - www.sumitomometals.co.jp/e/index.html -
was established in 1949 and is a leading diversified manufacturer of steel
products and a distinguished supplier of construction, plant and system
engineering services. The company's principal activity is the manufacture
and distribution of steel products. Operations are carried out through the
following divisions: Steel Products (steel sheets and plates, tubes and
pipes, bars, wire rods, railway, automotive and machinery parts and
construction materials); Engineering (maintenance and construction) ;
Electronics and Information Services (semiconductor and silicon wafer) and
Other (transport and technology). Steel products accounted for 64% of fiscal
2001 revenues; Electronics/Information services, 17%; Other, 11% and
Engineering, 8%.

Over the next three years, SMI will face the maturity of 258 billion yen in
bonds and 430 billion yen in long-term borrowings, for a total of nearly 700
billion yen, the Rating and Investment Information reports.

This is too much to cover out of the free cash flow generated by core
businesses and from cash at hand. It should be possible to raise funds
through the sale of securities holdings, real estate and affiliated
companies, while the firm also plans to borrow funds from financial
institutions to meet the fund demand.

For further information, please contact Sumitomo Metal Industries Limited's
Yogen Morihara at telephone +81 6 6220 5111 or via e-mail at
morihara-yug@sumitomometals.co.jp.


* Fitch Affirms Ratings of Big Four Japanese Banks
--------------------------------------------------
Fitch Ratings has affirmed its ratings of the following major Japanese
banking groups: Mizuho Holdings, Mizuho Bank, Mizuho Corporate Bank, Mizuho
Trust & Banking, Mizuho Asset Trust & Banking, Sumitomo Mitsui Banking
Corporation, Bank of Tokyo-Mitsubishi, Mitsubishi Trust & Banking, UFJ Bank
and UFJ Trust Bank.

In the financial year to end-March 2002, most of the major Japanese banks
saw substantial bottom-line losses as credit costs greatly exceeded initial
predictions. (A Credit cost is a general term used in Japan and includes
loan loss provisions, loan write-offs, losses on loan sales, etc.) Falling
investment equity valuations were booked directly against capital or
recognized as losses, with the latter eroding profitability even further.

The stand-alone financial condition and performance of the major Japanese
banks remains weak. They continue to face substantial problems of varying
intensity, including burdensome levels of problem loans, heavy exposure to
the volatile stock market, weak capitalization and low profitability. With
capital depleted and most investment equity portfolios underwater on a fair
value basis, the banks now have even less of a cushion than before to deal
with future losses. In general, the quality of capital at Japan's major
banks is poor, consisting largely of deferred tax assets and government-held
preferred securities. In this regard, the superior quality of capital at
Bank of Tokyo-Mitsubishi and Mitsubishi Trust & Banking relative to the peer
group is one of the factors sustaining these two banks' higher ratings.

The banks project a return to a modest level of profitability in the year
ending March 2003, based on an assumption that credit costs can be reduced
to one-third the level of last year. However, it should be noted that in
recent years the banks' initial performance projections have usually had
little relation to actual results. This has been due to a combination of the
banks' overoptimistic projections of Japan's economic performance, their
exposure to volatile domestic stock prices and the under-reserving of
exposures to financially troubled borrowers.

Whether or not this year's projections are achievable will depend on several
factors, including the overall economy and performance of the domestic stock
market. While some observers believe the Japanese economy has bottomed out,
Fitch remains cautious in its outlook. The banks will continue to reduce
their still extensive investment equity portfolios through the current
financial year. However, bottom line profitability and capital ratios will
remain vulnerable to domestic stock price volatility for some time. Fitch
estimates that the major banks will have to dispose of approximately JPY8
trillion in stocks during the next two years in order to meet the rule
requiring that investment equity holdings not exceed the amount of Tier 1
capital by October 2004.
Some banks issued new Tier 1 capital in 2001/2002, and Mitsubishi Tokyo
Financial Group recently filed a shelf registration with the US SEC for
raising up to USD1 billion in additional funds. The shelf registration
covers various types of securities including ordinary shares. While the
major Japanese banks have varying degrees of access to the international
capital markets, their financial soundness will not be restored until they
can fundamentally improve their ability to generate capital internally.

The banks have been endeavoring to raise operating profitability primarily
through improving loan spreads. However, for lower rated borrowers, none of
the banks' current loan yields even cover their expected losses let alone
provide a positive return on allocated capital. This suggests that the banks
need to increase the spread drastically, substantially increase general loan
loss reserves and/or reduce exposures to these categories of credits.

All of the banks saw liquid deposits rise in early 2002, just prior to the
partial lifting of the blanket deposit guarantee, as liquid deposits
continue to be covered in full by the deposit insurance system for a further
year. The Financial Services Agency is currently considering the
introduction of a new type of non-interest bearing deposit account, which
would retain unlimited coverage even after the JPY10 million deposit
insurance ceiling is imposed on liquid deposits, now scheduled from April
2003. Apart from the cost burden of altering IT networks and ATMs to deal
with these so-called 'settlement accounts', Fitch does not believe such a
move would have any permanent stabilizing effect on the banking system. On
the contrary, the agency views it as another temporary fix that would in
effect confirm the underlying instability that exists in the system.

Despite the banks' adverse operating environment and their very low
Individual ratings (which reflect poor performance and weak inherent
financial strength), Fitch's debt ratings for them are well above investment
grade.

The investment grade debt ratings are sustained by the agency's expectation
that support from the government would be forthcoming should it prove to be
necessary. Consequently, there is a high degree of linkage between the
banks' debt ratings and the government's ability, and ongoing willingness,
to provide adequate and timely support. Fitch's sovereign rating on Japan is
currently 'AA' with a Negative Outlook. The banks' Outlook is also Negative
in line with the sovereign.

The following ratings are affirmed:

Mizuho Bank: Long-term rating of 'A-' with a Negative Outlook, Short-term of
'F2', Support of '2' and Individual of 'D/E'.

Mizuho Corporate Bank: Long-term rating of 'A-' with a Negative Outlook,
Short-term of 'F2', Support of '1' and Individual of 'D/E'.

Mizuho Trust & Banking: Long-term rating of 'A-' with a Negative Outlook,
Short-term of 'F2', Support of '3' and Individual of 'C'.

Mizuho Asset Trust & Banking: Long-term rating of 'BBB+' with a Negative
Outlook, Short-term of 'F2', Support of '3' and Individual of 'E'.

Mizuho Holdings Inc: Long-term rating of 'A-' with a Negative Outlook,
Short-term of 'F2', Support of '1' and Individual of 'D/E'.

Sumitomo Mitsui Banking Corporation: Long-term rating of 'A-' with a
Negative Outlook, Short-term of 'F2', Support of '1' and Individual of
'D/E'.

Bank of Tokyo-Mitsubishi: Long-term rating of 'A' with a Negative Outlook,
Short-term of 'F1', Support of '1' and Individual of 'D'.

Mitsubishi Trust & Banking: Long-term rating of 'A' with a Negative Outlook,
Short-term of 'F1', Support of '1' and Individual of 'D/E'.

UFJ Bank: Long-term rating of 'A-' with a Negative Outlook, Short-term of
'F2', Support of '1' and Individual of 'D/E'.

UFJ Trust Bank: Long-term rating of 'A-' with a Negative Outlook, Short-term
of 'F2', Support of '1' and Individual of 'D/E'.


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


DAEWOO MOTOR: Creditors May Offer $600M in New Loans
----------------------------------------------------
Three main creditors of Daewoo Motor may offer $600 million in new loans to
the joint venture to be set up by General Motors and the creditors, the
Korea Herald and Seoul Economic Daily reported Tuesday.

The creditors banks are Woori Bank, Korea Exchange Bank and Chohung Bank.

In the meantime, the creditors may resolve this week on how to allocate $2
billion of new loans to the venture.

General Motors in April agreed to take on the debt, while with its partners
investing in 67 percent of the venture. The creditors agreed to hold the
remaining stake and also to provide $2 billion in loans to the new firm,
including $750 million at a fixed interest rate.


DAEWOO MOTOR: Halting Car Operations on Parts Supply Freeze
-----------------------------------------------------------
Daewoo Motor Co. have suspended operations at its three car making plants in
Pupyong, Kunsan and Changwon after its largest supplier, Korea Delphi
Automotive Systems Corporation, halted delivering key parts on Tuesday, AFX
Asia reports.

The Company said they are trying their best to persuade creditors to settle
the claims held by contractors.

Daewoo Motor contractors decided on Monday to stop delivering automobile
components to the carmaker after the company failed to pay the suppliers for
the parts.


DAEWOO MOTOR: KDB Aims to Provide W100B Loans to Suppliers
----------------------------------------------------------
Korea Development Bank, the main creditor of Daewoo Motor Co., plans to
supply up to 100 billion won in emergency loans to the Company's
cash-strapped suppliers, the Korea Economic Daily and Dow Jones reported
Wednesday.

The report said he suppliers had asked KDB to provide about 122 billion won
in loans.

KDB expects the suppliers would then likely scrap their plan to stop
supplying parts to Daewoo Motor.


DAEWOO MOTOR: Ministry Orders Recall of 290,000 Cars
----------------------------------------------------
The Ministry of Construction and Transportation has ordered the recall of
290,000 mid-sized cars sold by Daewoo Motor Co locally, because of brake
hose defects, Agence France-Presse and AFX Asia reported Wednesday.

"We found some problems in brake hose in the recent regular inspection,
which are not that serious...but we have made a recall decision in a bid to
ensure drivers' safety and improve our corporate image," a company spokesman
said.

Vehicles being recalled are 170,849 Nubira II models and 119, 027 Rezzo
models that were produced between December 1999 and September 2001.


HANBO STEEL: Postpones Deadline to Sign Sales Deal
--------------------------------------------------
AK Capital, the successful bidder to acquire ailing Hanbo Steel, is unlikely
to reach a final deal on August 28 as planned due to differences on the
price, the Maeil Business Newspaper reported Tuesday.

The deadline was set when the two companies signed a MOU (memorandum of
understanding) on March 2.

Creditor officials remarked that the delay to sign a deal does not
necessarily mean a failure in talks, adding they will conduct future talks
aimed at concluding payments by November this year.

AK Capital is said to propose a bidding price of $374 million, the minimum
price set by the MOU signed in March 2002.


HYUNDAI MOTOR: KFTC Sanctions Carmaker
--------------------------------------
The Korea Fair Trade Commission (KFTC) has sanctioned Hyundai Motor for
providing illegal debt guarantees and other financial support to several
unregistered units, Digital Chosun reported Monday.

The state anti-trust watchdog's two-week probe of the group in May revealed
that the Company extended a total of W20 billion in debt guarantees and
W34.5 billion in loans at very low interest rates to small companies. The
group had acquired the managerial rights but had not declared that they were
its subsidiaries.

KFTC imposed W600 million in fines and a rectification order each on Korea
DTS, a unit of the Company that provided the debt guarantee, and Hyundai
Motor, which it accused of extending the financial support.

The commission also gave warning to Chung Mong-koo, Chairman of the group,
for not reporting the acquisition of its four subsidiaries on time.

Hyundai Motor commented that the firms on question are the group's core
parts suppliers and that the group provided the support because the firms
short of funds and risked going bankrupt or being taken over by foreign
firms.

The company also said that the question of whether these firms are
subsidiaries was simply matter of one's point of view.

DebtTraders reports that Hyundai Motor's 7.600 bond due in 2007 (HYNM07KRS1)
trades between 104.100 and 104.510. For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=HYNM07KRS1


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


AMSTEEL CORPORATION: Unit to Sell 900 Acres Land for MR27.927M
--------------------------------------------------------------
Amsteel Corporation Bhd's unit Henrietta Rubber Estate Ltd has signed nine
separate agreements with seven purchasers to sell nine parcels of freehold
agricultural land in Perak for a total of 27.927 million ringgit cash.

Under the agreements, the parcels of land have a total area of about 900.
871 acres and is located partly within the Town of Tanjung Rambutan and
partly within the Mukim of Ulu Kinta in Perak.

Henrietta acquired the parcels of land in 1964 at a cost of 5.03 million
ringgit.

The proposed sale is part of the group's proposed corporate and debt
restructuring plan to rationalize its financial position and to streamline
its core businesses. Proceeds of the sale will be used to repay bank
borrowings of 25.430 million ringgit, which will in turn result in interest
savings of about 2.034 million ringgit per year.

The remaining 2.497 million ringgit will be used to defray expenses related
to the sale.

Amsteel Corp. revealed a net loss of RM609.48 million for the financial year
ended June 30, from RM675.20 million a year ago. The Company had RM7.22
billion in borrowings as of June 30.


BERJAYA SPORTS: Buys Back 218,000 Shares for RM847,081.92
---------------------------------------------------------
Berjaya Sports Toto Berhad said Tuesday that it had bought back 218,000
ordinary shares for a total consideration of RM847,081.92.

The minimum price paid for each share purchased was 3.820, while maximum
price paid for each share purchased was 3.880. The total number of shares
purchased retained in treasury was 218,000. To date, the cumulative net
outstanding treasury shares were 34,150,000.

The number of shares with voting rights in issue after the above share buy
back is 553,842,305.


CHG INDUSTRIES: Revises Rehabilitation Plan
-------------------------------------------
On 22 April 2002, Commerce International Merchant Bankers Berhad (CIMB) had,
on behalf of CHG Industries Berhad, announced that the Company has proposed
to implement the following proposals:

(a) The proposed reduction of the issued and paid-up share capital of CHG
from RM47,850,002 comprising 47,850,002 ordinary shares of RM1.00 each in
CHG (Shares) to RM23,925,001 comprising 47,850,002 ordinary shares of RM0.50
each, by canceling RM0.50 from every existing Share in CHG and the
consolidation of two (2) resultant shares of RM0.50 each into one (1) new
Shares (Original Proposed Capital Reduction);

(b) The proposed issue of up to RM84,000,000 nominal value six (6)-year 3.5%
redeemable unsecured loan stock (RULS) at an issue price of approximately
83.33% of its nominal value as settlement for up to RM70,000,000 bank
borrowings of CHG and its subsidiaries (CHG Group) (Original Proposed RULS
Issue);

(c) The proposed issue of up to RM80,000,000 nominal value irredeemable
convertible unsecured loan stock (ICULS) at an issue price of 100% of its
nominal value, as settlement for up to RM80,000,000 bank borrowings of the
CHG Group (Original Proposed ICULS Issue);

(d) The proposed renounceable two (2)-call rights issue of up to 47,850,002
new Shares ("Original Rights Shares") together with 23,925,001 new
detachable warrants (Original Rights Warrant) at an issue price of RM1.00
per Original Rights Share, on the basis of two (2) Rights Shares together
with one (1) Original Rights Warrant for every two (2) existing Shares held
prior to the Proposed Capital Reduction on a date to be determined and
announced later (Original Proposed Rights Issue);

(e) The proposed establishment of an employees' share option scheme
(Original Proposed ESOS);

(f) The proposed increase in the authorized share capital of CHG from
RM100,000,000 comprising 100,000,000 Shares to RM500,000,000 comprising
500,000,000 Shares (Original Proposed Capital Increase); and

(g) The proposed amendments to the Memorandum and Articles of Association of
CHG to facilitate the Proposed Capital Increase (Original Proposed M&A
Amendments).

The above shall be collectively referred to as the "Original Proposals".

CIMB, on behalf of the Company, would like to announce that after careful
deliberation, the Company has decided to revise the Original Proposals
(Revisions), the details of which are set out below.

DETAILS OF THE REVISIONS

The details of the Revisions are set out as follows:

The Proposed Capital Reduction
The Original Proposed Capital Reduction be revised, whereby the size of the
capital reduction will be reduced from RM0.50 per Share to RM0.20 per Share.

The Proposed Rights Issue
The Original Proposed Rights Issue be replaced by the Proposed Rights Issue

The Proposed Debts Restructuring
The Original Proposed RULS Issue and Proposed ICULS Issue shall be replaced
by the Proposed Debts Restructuring, the details of which are set out in
Section 3.3 hereof.

The Proposed Capital Increase
The Original Proposed Capital Increase and the Original Proposed M&A
Amendments shall be combined as the Proposed Capital Increase.

The Original Proposed ESOS
The Original Proposed ESOS shall be deferred indefinitely and will not form
part of the Proposals.

DETAILS OF THE PROPOSALS

The Proposed Capital Reduction
The Proposed Capital Reduction shall involve the following:
(a) The reduction in the issued and paid-up share capital of CHG from
RM47,850,002 comprising 47,850,002 Shares to RM38,280,002 comprising
47,850,002 ordinary shares of RM0.80 each, by canceling RM0.20 from every
existing Share; and

(b) Upon (a) above taking effect, the issued and paid-up share capital of
CHG of 47,850,002 ordinary shares of RM0.80 each will be consolidated into
38,280,002 Shares to be credited as fully paid-up, by consolidating five (5)
ordinary shares of RM0.80 each into four (4) new Shares.

The reduction of RM0.20 from every existing Share will give rise to a credit
of approximately RM9,570,000, which would be utilized to reduce the latest
audited accumulated losses of the Company. As at 31 December 2001, the
audited accumulated losses of the Company was approximately RM135.065
million.

The effects of the Proposed Capital Reduction are illustrated as follows:

The Proposed Capital Reduction
                                  No. of    Par value  Amount
                                shares '000    RM      RM'000
Before capital reduction           47,850      1.00    47,850
(existing share capital)
After the capital reduction        47,850      0.80    38,280
After consolidation of the shares  38,280      1.00    38,280

The High Court of Malaya's sanction for the Proposed Capital Reduction,
pursuant to Section 64 of the Companies Act, 1965 would be sought after the
receipt of the approval from the shareholders of CHG for the Proposals.

The Proposed Rights Issue

Introduction

In connection with the Proposed Capital Reduction, CHG proposes a
renounceable rights issue of 21,532,501 new Shares (Rights Shares) together
with 21,532,501 new detachable warrants (Rights Warrants) at an issue price
of RM1.00 per Rights Share, payable in full upon acceptance, on the basis of
forty five (45) Rights Shares plus forty five (45) Rights Warrants for every
hundred (100) existing Shares held prior to the Proposed Capital Reduction
on a date to be determined and announced later. The Rights Warrants will be
issued without charge.

Ranking of the Rights Shares

The Rights Shares shall, upon allotment and issue, rank pari passu in all
respects with the existing Shares save and except that they shall not be
entitled to any dividends, rights, allotments and/or other distributions
unless the allotment of the Rights Shares were made on or prior to the
Entitlement Date, i.e. the date as at the close of business on which the
names of the shareholders must be entered in the Record of Depositors in
order to participate in any dividends, rights, allotments and/or other
distributions by the Company.

The Rights Warrants

The principal terms of the Rights Warrants are set-out in below:

Issuer: CHG

Issue size: Up to 21,535,501 Rights Warrants

Form: The Rights Warrants will be issued in registered form and constituted
by the Deed Poll

Subscription Rights: Each Rights Warrant carries the entitlement, at any
time during the Exercise Period, to subscribe for one (1) new Share at the
Exercise Price, subject to adjustments in accordance with the provisions of
the Deed Poll

Reserve Warrants: In the event that the total number of Rights Warrants
holders holding at least 1,000 Right Warrants is less than one hundred
(100), the Board reserves the right to issue up to 100,000 Rights Warrants
to a primary subscriber to be identified at an issue price of RM1.00 per
Rights Warrant for the purpose of creating the spread requirement

Exercise Period: Six (6) years commencing on and including the date of issue
of the Rights Warrants

Exercise Price: The exercise price of the Rights Warrants is fixed at RM1.00
per Share. This exercise price has been fixed based on a premium of 69.5%
from the theoretical ex-all price of the Share after the Proposed Capital
Reduction and the Proposed Rights Issue based on the five (5) day weighted
average market price of the Shares until and including 9 April 2002 (being
the latest practicable date prior to the announcement of the Proposals) of
RM0.28 per Share. The Exercise Price is subject to adjustment under the
terms and conditions to be set out in the Deed Poll and shall be satisfied
in cash

Expiry: At the close of business on a date six (6) years from the date of
issue of the Rights Warrants, any Rights Warrant which has not been
exercised will lapse and cease thereafter to be valid for any purpose

Board Lot: Comprising 1,000 Rights Warrants

Ranking: The new Shares to be issued pursuant to the exercise of the Rights
Warrants shall, upon allotment and issue, rank pari passu in all respects
with the existing Shares save and except that they shall not be entitled to
any dividends, rights, allotments and/or other distributions, unless the
allotment of the new Shares were made on or prior to the date of the
Entitlement Date

Listing: Application will be made to the KLSE for the admission to the
Official List and the listing of and quotation for the Rights Warrants and
the listing of and quotation for the new Shares to be issued pursuant to the
exercise of the Rights Warrants

Pricing of the Rights Shares with Rights Warrant

The issue price of RM1.00 per Rights Share is at a premium of 69.5% to the
theoretical ex-all price of RM0.59 per Share after the Proposed Capital
Reduction and Proposed Rights Issue computed based on the five (5)-day
weighted average market price of the Shares until and including 9 April 2002
(being the latest practicable date on which such price could be calculated
prior to the announcement of the Original Proposals) of RM0.28 per Share.

The Proposed Rights Issue will also include the issuance of Rights Warrants
to enhance the attractiveness of the Rights Shares.

Proposed Utilization of Proceeds

The cash proceeds to be raised from the Proposed Rights Issue will be
utilized in the following manner:
                                                   RM'000
Gross proceeds to be raised from the
Proposed Rights Issue                              21,533
Part repayment of bank borrowings pursuant
to the Proposed Debts Restructuring                 9,000
General working capital requirements of the Group  10,033
Estimated expenses for the Proposals                2,500
Gross proceeds utilized                            21,533

The Proposed Debts Restructuring

The Proposed Debts Restructuring involves the restructuring of total
outstanding bank borrowings comprising trade and non-trade financing of up
to RM179,188,000. The Proposed Debts Restructuring will not involve
RM40,000,000 bank borrowings to be settled pursuant to the proposed disposal
of the Company's entire equity interest in Syarikat Galas Setia (Ulu
Kelantan) Sdn Bhd (SGS), a wholly owned subsidiary of CHG, which is pending
the approval of the Securities Commission (SC) (Proposed Disposal of SGS),
certain bank guarantees of SGS amounting to RM420,000 and a term loan of CHG
Plywood Sdn Bhd (CHGPly), a wholly owned subsidiary of CHG amounting to
RM205,000. The Proposed Debts Restructuring is subject to the completion of
the Proposed Disposal of SGS.

The actual amount of bank borrowings to be restructured pursuant to the
Proposed Debts Restructuring will be determined at a later date to be fixed
by the Company with the consent of the banks that participate in the
Proposed Debts Restructuring (Lender Banks).

The details of the Proposed Debts Restructuring is set out as follows:

(i) The Proposed Debts Restructuring involving CHGPly

The total outstanding borrowings of CHGPly of up to approximately RM110.0
million will be restructured as follows:

(a) Up to RM49.9 million will be assumed by CHG, out of which RM5.5 million
will be repaid in cash from proceeds arising from the Proposed Rights Issue
and the remaining amount of up to RM44.4 million will be settled via the
Proposed ICULS Issue (the details of which are set out below); and
(b) Up to RM60.1 million will be settled via the Proposed CHGPly RSLS Issue
(the details of which are set out below).

However, it has been proposed that up to RM6.0 million will be carved out
from the RM60.1 million above to be maintained as trade facilities for the
working capital of CHGPly. This amount will be derived from the existing
trade facilities provided by the Lender Banks. However, the actual amount of
trade lines to be maintained is subject to the approvals of the Lender
Banks. The actual amount of trade facilities to be carved out from the
RM60.1 million to be restructured will be excluded from the settlement via
the Proposed CHGPly RSLS Issue.

(ii) The Proposed Debts Restructuring involving Cheng Hin Timber Industries
Sdn Bhd (ChengHin)

The total outstanding borrowings of ChengHin of up to approximately RM33.8
million will be restructured as follows:

(a) Up to RM15.3 million will be assumed by CHG, out of which RM1.7 million
will be repaid in cash from the proceeds arising from the Proposed Rights
Issue and the remaining amount of up to RM13.6 million will be settled via
the Proposed ICULS Issue; and

(b) Up to RM18.5 million will be settled via the Proposed ChengHin RSLS
Issue (the details of which are set out below)

(iii) The Proposed Debts Restructuring involving SGS

The total outstanding trade financing of SGS of up to approximately RM9.0
million will be restructured, whereby the entire amount will be assumed by
CHG, of which RM0.5 million will be repaid in cash from proceeds arising
from the Proposed Rights Issue, RM4.9 million will be settled by the
Proposed CHG RSLS Issue (the details of which are set out below) and the
remaining amount of up to RM3.6 million will be settled via the Proposed
ICULS Issue.

(iv) The Proposed Debts Restructuring involving CHG

As at 31 July 2002, CHG has an outstanding syndicated bank guarantee
facility of approximately RM26.4 million (Called SynBG). The Called SynBG
arise pursuant to the payment obligation of the Company in redeeming part of
the Bonds 1994/1999 that matured on 15 June 1999.

Further, CHG will assume a total outstanding bank borrowings of up to RM74.3
million from CHGPly, ChengHin and SGS, comprising up to RM49.9 million,
RM15.3 million and RM9.0 million respectively.

The total outstanding bank borrowings of up to RM100.6 million, comprising
the Called SynBG of RM26.4 million and the amount of bank borrowings it will
assume of up to RM74.3 million, will be restructured as follows:

(a) Up to RM19.3 million, which comprise RM14.4 million Called SynBG
together with RM4.9 million trade financing of SGS, will be settled via the
Proposed CHG RSLS Issue;

(b) Up to RM72.3 million, which comprise RM10.7 million Called SynBG
together with RM44.4 million, RM13.6 million and RM3.6 million bank
borrowings of CHGPly, ChengHin and SGS to be assumed by CHG, will be settled
via the Proposed ICULS Issue; and

(c) RM9.0 million, which comprise RM1.3 million Called SynBG together with
RM5.5 million, RM1.7 million and RM0.5 million bank borrowings of CHGPly,
ChengHin and SGS respectively to be assumed by CHG, will be repaid in cash
from proceeds arising from the Proposed Rights Issue.

The details of the Proposed CHG RSLS Issue, Proposed CHGPly RSLS Issue,
Proposed ChengHin RSLS Issue and the Proposed ICULS Issue are as follows:

(i) The Proposed CHG RSLS Issue

The Proposed CHG RSLS Issue involves CHG issuing up to RM23,547,000 nominal
value RSLS at an issue price of approximately 81.97% of its nominal value,
i.e. at a total issue price of up to RM14,397,548, as settlement of up to
RM14,397,548 of its outstanding bank borrowings.

The principal indicative terms of the CHG RSLS are set out in
http://bankrupt.com/misc/chg1.pdf.

(ii) The Proposed CHGPly RSLS Issue

The Proposed CHGPly RSLS Issue involves CHGPly issuing up to RM72,096,000
nominal value RSLS at an issue price of approximately 83.33% of its nominal
value, i.e. at a total issue price of up to RM60,079,448, as settlement of
up to RM60,079,448 of its outstanding bank borrowings.

However, based on the maximum carve out amount of RM6,000,000 as explained
above, the actual issue size of the CHGPly RSLS may reduce to a nominal
value of up to RM64,896,000 and the issue value may reduce to an amount of
up to RM54,079,448. The actual nominal value of the CHGPly RSLS to be issued
will, amongst others, be subject to the actual amount to be carved out and
to be maintained as trade facilities.

The principal indicative terms of the CHGPly RSLS are set out in
http://bankrupt.com/misc/chg2.pdf.

(iii) Proposed ChengHin RSLS Issue

The Proposed ChengHin RSLS Issue involves ChengHin issuing up to
RM22,145,000 nominal value ChengHin RSLS at an issue price of approximately
83.33% of its nominal value, i.e. at a total issue price of RM18,453,693, as
settlement of up to RM18,453,693 of its outstanding bank borrowings.

The principal indicative terms of the ChengHin RSLS are set out in
http://bankrupt.com/misc/chg3.pdf.

(iv) Proposed ICULS Issue

The Proposed ICULS Issue involve CHG issuing up to RM72,354,000 nominal
value ICULS at an issue price of 100% of its nominal value to settle part of
the Called SynBG amounting to RM10,648,000 and up to RM61,706,000 total
outstanding bank borrowings of CHGPly, ChengHin and SGS to be assumed by
CHG.

The principal indicative terms of the ICULS are set out in
http://bankrupt.com/misc/chg4.pdf.

The Company and the Lender Banks will enter into a debts restructuring
agreement that will set out the detail terms of the Proposed Debts
Restructuring. As at to date, the Company and the Lender Banks are in
discussion to finalize the terms of the debts restructuring agreement.

Proposed Capital Increase

The Proposed Capital Increase involves the increase in the authorized share
capital of CHG from RM100,000,000 comprising 100,000,000 Shares to
RM500,000,000 comprising 500,000,000 Shares through the creation of an
additional 400,000,000 Shares. The Proposed Capital Increase is necessary to
facilitate the implementation of the Proposed Right Issue and Proposed ICULS
Issue.

As a result of the Proposed Capital Increase, the M&A of the Company will be
amended accordingly to facilitate the increase in the authorized share
capital of CHG.

RATIONALE FOR THE PROPOSALS

Consequent to the regional financial crisis in 1997 and its aftermath, the
Group suffered major losses that resulted in the significant deterioration
of its financial position. The Proposals has been structured to address the
current financial condition of the Group, whereby it aims to, amongst
others, strengthen the financial position of the Group, reduce its level of
financial leverage and debts service cost and to restore it to a profitable
position.

The Proposed Capital Reduction

Pursuant to the Proposed Capital Reduction, which forms an integral part of
the entire Proposals that aims to address the CHG Group's gearing level as
well as its financing needs, the equity shareholders are required to give up
20% value of their issued and paid-up share capital. This is required in
order to secure the participation of the Lender Banks in the Proposed Debts
Restructuring. Although the capital reduction will reduce the number of
Shares held by the shareholders of CHG, their equity interests in CHG remain
unchanged. In addition, the Proposed Rights Issue will make up more than the
decrease in the number of Shares held by provisionally allotting 45 Rights
Shares together with 45 Rights Warrant for every hundred 100 existing Shares
held prior to the Proposed Capital Reduction.

The Proposed Rights Issue

The Proposed Rights Issue which involves the issuance of 21,532,501 Rights
Shares together with 21,532,501 Rights Warrants, on the basis of 45 Rights
Shares plus 45 Rights Warrants for every 100 existing Shares held prior to
the Proposed Capital Reduction, is necessary to raise funds which will be
utilized to repay part of the Group's bank borrowings pursuant to the
Proposed Debts Restructuring, to finance the general working capital
requirements of the Group and to pay expenses relating to the Proposals. In
addition to recapitalizing the financial position of the CHG Group, the
Proposed Rights Issue will also restore the equity holdings of the
shareholders of CHG after the Proposed Capital Reduction.

The Proposed Debts Settlement

The Proposed Debts Settlement is structured to allow the Group to
immediately reduce its high gearing to a more manageable level via the
Proposed ICULS Issue, and to term out the repayment of its bank borrowings
over a period of up to six (6) years via the Proposed CHG RSLS Issue,
Proposed CHGPly RSLS Issue and the Proposed ChengHin RSLS Issue that will
enable the Group to match its future cash flows from operations with its
financial obligations. Further, the Proposed Debts Restructuring is also
expected to reduce the interest expenses and payments of the Group.

Proposed Capital Increase

The proposed increase in the authorized share capital of the Company is to
accommodate the increase in the issued and paid-up share capital of the
Company pursuant to the Proposed Rights Issue and the subsequent exercise of
the Rights Warrants and conversion of the ICULS as well as and to provide
for any future increase in capital.

EFFECTS OF THE PROPOSALS

Issued and Paid-up Share Capital

The proforma effects of the Proposals on the share capital of CHG are set
out in http://bankrupt.com/misc/chg5.pdf.

Substantial Shareholders' Shareholdings

The proforma effects of the Proposals on the shareholdings of the
substantial shareholders of CHG as at 15 August 2002 are set out in
http://bankrupt.com/misc/chg6.pdf.

Net Tangible Assets (NTA)

The proforma effects of the Proposals on the NTA of the CHG Group are set
out in http://bankrupt.com/misc/chg7.pdf.

Earnings

The Proposals is not expected to affect the earnings of the Group for the
financial year ending 31 December 2002 as the Proposals are expected to be
completed in the second half of the financial year ending 31 December 2003.
However, the Proposals are expected to contribute positively to the earnings
of CHG Group for the financial year ending 31 December 2003.

CONDITIONS OF THE PROPOSALS

The Proposals are subject to approvals being obtained from the following:

(a) the SC, for the Proposed Capital Reduction, Proposed Rights Issue and
Proposed Debts Restructuring;

(b) the Kuala Lumpur Stock Exchange (KLSE), for the admission to the
Official List of the KLSE, the listing of and quotation for the Rights
Warrants and the listing of and quotation for the new Shares arising from
the Proposed Rights Issue, the conversion of the ICULS and exercise of the
Rights Warrants;

(c) the Foreign Investment Committee and/or the Ministry of International
Trade and Industry for the Proposed ICULS Issue, where applicable;

(d) the High Court of Malaya pursuant to Section 64 of the Companies Act,
1965 for the Proposed Capital Reduction;

(e) the requisite approvals from the Lender Banks in respect of the Proposed
Debts Restructuring;

(f) the shareholders of CHG for the Proposals at an EGM to be convened. The
Proposed Capital Reduction and Proposed Capital Increase require the
approval of 75% of the shareholders of CHG who are present and are eligible
to vote at the EGM;

(g) Bank Negara Malaysia for the issuance of the Rights Warrants; and

(h) any other relevant authorities and/or parties, if applicable.

The Proposed Capital Reduction, Proposed Rights Issue, Proposed Debts
Restructuring and Proposed Capital Increase are inter-conditional to one
another, and they are collectively conditional on the Proposed Disposal of
SGS. The Proposed Disposal of SGS is currently pending the approval of the
SC.

DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTERESTS

Save and except for their respective entitlements to the Proposed Rights
Issue, where applicable, none of the Directors and substantial shareholder
of CHG and persons connected to the Directors and substantial shareholder of
CHG have any interest, direct or indirect, in the Proposals.

UNDERTAKINGS AND UNDERWRITING ARRANGEMENT

Mr. Francis Foo See Yuan, being a substantial shareholder of CHG with
shareholding of 7,490,664 Shares, representing 15.65% of the issued and
paid-up share capital of CHG as at 15 August 2002, will give his irrevocable
undertaking to subscribe for his entitlement of 15.65% of the Rights Shares
that will be issued pursuant to the Proposed Rights Issue.

Mr. Lum Weng Loy, being a shareholder of CHG with shareholding of 2,354,000
Shares, representing 4.92% of the issued and paid-up share capital of CHG as
at 15 August 2002, will give his irrevocable undertaking to subscribe for
his entitlement of 4.92% of the Rights Shares that will be issued pursuant
to the Proposed Rights Issue.

Mr. Francis Foo See Yuan and Mr. Lum Weng Loy will also give their
irrevocable undertakings to exercise at least 187,497 Rights Warrants
immediately upon their listing to enable the Company to meet the minimum
issued and paid-up share capital of RM60.0 million required for listing on
the Main Board of the official list of the KLSE.

CIMB and/or CHG will arrange for the remaining Rights Shares and Rights
Warrants under the Proposed Rights Issue to be fully underwritten at an
underwriting commission rate to be determined at a later date. The
underwriting commission will be fully borne by the Company.

STATEMENT BY DIRECTORS

The Board of Directors of CHG is of the opinion that the Proposals are in
the best interest of CHG.

ADVISER

CIMB continues to act as the adviser for the Proposals.


GEAHIN ENGINEERING: Aquamech Seeks Debt Payment of RM37,896.40
--------------------------------------------------------------
Geahin Engineering Berhad said Tuesday that on August 26, 2002, it has been
served by registered post with a Statutory Notice dated August 21, 2002 in
pursuant to Section 218 of the Companies Act 1965 by Aquamech Corporation
Sdn. Bhd, the alleged creditor.

Aquamech is demanding for the alleged debt of RM37,896.40 to be paid within
twenty-one (21) days from the service of the said Notice, failing which the
Company shall be deemed to be unable to pay its debt under Section 218 (2)
(a) of the said Act and appropriate action will be taken to wind-up the
Company.

The purported debt of RM37,896.40 is litigated by the Company and is now
pending litigation in Kuala Lumpur Saman No.(2) 52-746-2002 between Aquamech
and the Company which will be coming up for mention on 04.09.2002.

Meanwhile, the Company's Solicitor is opposing the said Notice and the
Company will keep all parties concerned informed about its outcome in due
course.

In addition, the Company wish to inform that except for the alleged debt of
RM37,896.40 as mentioned above, there are no other and additional financial
and operational impacts on the Geahin Group.


HUME INDUSTRIES: HIMB Announces Rights Issue of 250M Shares
-----------------------------------------------------------
Commerce International Merchant Bankers Berhad, on behalf of Hume Industries
(Malaysia) Berhad (HIMB), announced Tuesday a renounceable rights issue of
up to 250,242,630 new ordinary stock units of RM1.00 each in HIMB at an
issue price of RM2.00 per right stock.

The rights issue is payable in full upon acceptance, on the basis of one
rights stock for every one existing ordinary stock unit of RM1.00 each held.

Registrar's name, address, telephone no:
Hong Leong Nominees Sendirian Berhad
Level 5, Wisma Hong Leong
18 Jalan Perak
50450 Kuala Lumpur
Tel. No.: (603) 21641818

Payment date: 13/09/2002
Number of new shares/securities issued (units): 250,242,630
Ratio: 1 : 1
Rights Issues/Offer Price: 2


LONG HUAT: Announces Winding-up Hearing Delay
---------------------------------------------
Long Huat Group Berhad said Tuesday that the winding-up hearing at the
Temerloh High Court on 20 August 2002 had been postponed.

The case has been fixed for mention on 29 November 2002.


MOL.COM BERHAD: Applies for Extension of Time
---------------------------------------------
Further to the Company's announcements dated 12 July 2002, 25 July 2002 and
31 July 2002, AmMerchant Bank Berhad (formerly known as Arab-Malaysian
Merchant Bank) wishes to announce on behalf of the Board of Directors of
MOL.com Berhad that it has on 28 August 2002 applied to the Kuala Lumpur
Stock Exchange (KLSE) for a two-month extension time period, from 1
September 2002 till 31 October 2002, to secure approval from the Securities
Commission for the implementation of its proposed rights issue.

Although approval has been obtained as announced on 12 July 2002, conditions
were imposed on the Company by the Securities Commission.

The Company has submitted an appeal against certain of these conditions and
will be making an announcement in due course following the outcome of the
appeal.


PLB ENGINEERING: Striking Off Dormant Subsidiary
-------------------------------------------------
The Board of Directors of PLB Engineering Berhad wishes to announce that PLB
Logistics Sdn. Bhd., a wholly owned subsidiary of PLB Ventures Sdn. Bhd.
which in turn is a wholly owned subsidiary of the Company, had on 27 August
2002 submitted an application to the Companies Commission of Malaysia (CCM)
to strike off its name from the register of CCM pursuant to Section 308(4)
of the Companies Act, 1965.

PLB Logistics was incorporated on 17 April 1985. The authorized capital of
PLB Logistics is RM500,000 comprising 500,000 ordinary shares of RM1.00
each. Its issued and paid-up capital is RM2.00 comprising 2 ordinary shares
of RM1.00 each fully paid up.

PLB Logistics is a dormant company and has ceased its operations since
October 1991. It has no intention to commence business in the near future
and has no asset or liability with any other party as at 31 July 2002.

The application for striking off under Section 308 of the Act is subject to
CCM's approval and shall not be subjected to the approvals of Securities
Commission, Foreign Investment Committee, Kuala Lumpur Stock Exchange or the
shareholders of the Company.


RENONG BERHAD: Swings Back to Black With UEM Stake Sale
-------------------------------------------------------
Renong Bhd swung back to the black with a net profit of RM766.44 million in
the year to June from a loss of RM1.44 billion a year earlier, mainly due to
a gain from the sale of its stake in United Engineers Malaysia Bhd (UEM),
the Edge Daily reported.

As of end-June, Renong has total long-term loans of RM4.426 billion and
short-term borrowings of RM407.088 million.

Renong's revenue fell to RM282.06 million for the year, from RM339.49
million previously. It posted revenue of RM64.31 million in the fourth
quarter against RM101.54 million in the previous corresponding quarter.

It said the partial redemption of the Renong SPV bond had resulted in
interest savings of about RM33 million in the fourth quarter. Total interest
savings for the 18 months ending Dec 31, 2002, is estimated to be about
RM160 million.

Renong will continue to accelerate its efforts to redeem the bond that has
accreted to RM4.05 billion as at June 30 via a structured asset disposal
program in efforts to reduce the debt burden and to preserve positive
shareholders' funds.


RENONG BERHAD: Putra Disposal Completion Expected by Year-end
-------------------------------------------------------------
Renong Bhd plans to complete the sale of its light rail transport (LRT) unit
Projek Usahasama Transit Ringan Automatik Sdn Bhd (PUTRA) by year-end.

The government has taken over Putra, which is currently being liquidated, in
a move to resolve the LRT operator's outstanding debts.

The Kuala Lumpur High Court on April 26 of this year made an order for the
winding-up of PUTRA and appointed several liquidators.


SENG HUP: KEB to Acquire SEB Capital
------------------------------------
The Board of Directors of Kempulan Emas Berhad (KEB) wishes to announce that
it had on 27 August 2002 entered into a Principal Agreement (PA) with Seng
Hup Corporation Berhad (SHCB) for the implementation of a proposal that
includes inter alia, the acquisition of the entire issued and paid share
capital of Salcon Engineering Berhad (SEB), a subsidiary of KEB from KEB and
the other shareholders of SEB, by a new company (Newco) to be incorporated
in accordance with the terms of the PA.

Pursuant to the powers set out under Section 24 of the Pengurusan Danaharta
Nasional Berhad Act, 1998, Pengurusan Danaharta Nasional Berhad (Danaharta)
appointed Mr Tan Kim Leong, JP and Mr Siew Kah Toong of BDO Binder as
Special Administrators (SAs) of SHCB on 9 September 1999.

Pursuant to Section 44 of the Act, the SAs are required to prepare a workout
proposal (which includes relevant parts of the Proposal) setting forth the
SAs' plan in respect of SHCB.

KEB in response to a briefing held by the SAs on 25 July 2002 in respect of
the tender exercise for SHCB, had submitted the Proposal to the SAs. The
Proposal was accepted by the SAs and Danaharta.

The Proposal in summary entails mainly the following:

1 Proposed incorporation of a new company, Newco, which shall be the vehicle
to undertake the proposals referred to below;

2 Proposed exchange of the ordinary shares of SHCB for new ordinary shares
in Newco at a ratio to be determined later (Proposed Share Exchange)
resulting in the acquisition of the entire issued and paid up share capital
of SHCB;

3 Proposed acquisition by Newco of the entire issued and paid up share
capital of SEB;

4 Proposed offer for sale and/or placement by the shareholders cum vendors
of SEB of Newco Shares;

5 Proposed public issue of new Newco shares at an issue price to be
determined later;

6 Proposed transfer of listing status from SHCB to Newco and from the Second
Board to the Main Board of the KLSE;

7 Proposed cash settlement of all known debts to creditors of SHCB; and

8 Proposed disposal and subsequent liquidation of SHCB upon implementation
of (1) to (7) above.

The salient terms of the PA includes inter alia:

1 Upon execution of the PA, KEB shall pay SHCB the sum of RM1.0 million as a
deposit and the sum of RM0.5 million to the SAs as interim payment of costs.

2 The key areas of agreement expressed in the PA are subject to and
conditional upon the following:

* SHCB being satisfied with the due diligence review to be conducted on SEB
and Newco; and

* all relevant approvals shall be obtained within 180 days from the date of
the PA or such extended time as shall be determined by the SAs in their sole
discretion.


SIME DARBY: Seeks Renewal of Authorization to Buy Back Shares
-------------------------------------------------------------
Sime Darby Berhad said Tuesday that it proposes to seek the approval of its
shareholders for the proposed renewal of the authorization to purchase its
own shares and the shareholders' mandate to allow the Sime Darby Group to
enter into recurrent related party transactions of a revenue or trading
nature at the forthcoming Thirty-Fourth Annual General Meeting (AGM) of the
Company.

The shareholders of Sime Darby had, at an Extraordinary General Meeting
(EGM) held on 6th November 2001, approved the renewal of the authorization
for the Company to buy back up to 232,596,007 shares in Sime Darby
representing 10% of the then issued share capital of the Company. The said
authorization will expire at the conclusion of the forthcoming AGM of the
Company and Sime Darby proposes to seek a renewal of the authorization at
the said AGM.

At the EGM held on 6th November 2001, the shareholders of Sime Darby had
also granted a mandate for Sime Darby and its subsidiaries to enter into
recurrent related party transactions of a revenue or trading nature which
are necessary for the day-to-day operations of the Group, provided such
transactions are made at arms' length, on normal commercial terms which are
not more favorable to the related parties than those generally available to
the public and are not to the detriment of the minority shareholders of the
Company. The said mandate also will expire at the conclusion of the
forthcoming AGM of the Company.

Pursuant to Paragraph 10.09 of the Kuala Lumpur Stock Exchange (KLSE)
Listing Requirements and KLSE Practice Note No. 12/2001, Sime Darby proposes
to seek a renewal of the shareholders' mandate to allow the Sime Darby Group
to enter into recurrent related party transactions at the forthcoming AGM of
the Company.


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


BOGO-MEDELLIN: Resignation of Director and Officers
---------------------------------------------------
Bogo-Medellin Milling Co., Inc. announced that the following individuals
have resigned from the Company effective immediately.

1. Mr. Timothy T. Bennett, as Director.
2. Ms. Bi Yong S. Chungunco, as Corporate Secretary, to be replaced by Atty.
Frances Yuyucheng;
3. Ms. Marise V. Marquez, as Assistant Corporate Secretary.

According Business World, Jardine Davies Inc. (JDI) would give up its
interests in sugar milling company Bogo-Medellin Milling Co. (BMMCO), which
has been suffering from the economic crunch.

In a disclosure to the Philippine Stock Exchange on Tuesday, JDI said it has
decided to divest at least 1.2 million shares in the milling company to
existing shareholders of BMMCO.

Bogo-Medellin is one of the country's oldest sugar companies. It is
primarily engaged in the milling of sugar with molasses as the byproduct.


MANILA MINING: Director Negel Tamlyn Quits Post
-----------------------------------------------
Manila Mining Corporation has informed the Philippine Stock Exchange that
Board of Directors of the Company has accepted the resignation of Negel
Tamlyn as Director of the Company. Mr. Tamlyn resigned and had to go back to
his country for personal/family reasons.

Manila Mining Corporation's principal activities are the exploration,
mining, milling, concentrating, converting, smelting, treating, buying,
selling, producing and dealing in precious and semi-precious metals like
gold, silver, copper, ores, minerals and their by-products.

According to Wright Investor's Service, at the end of 2001, Manila Mining
had negative working capital, as current liabilities were 1.18 billion
Philippine Pesos while total current assets were only 209.32 million
Philippine Pesos.


NATIONAL BANK: Lucio Tan Rules Out Merger With Allied Bank
----------------------------------------------------------
Lucio Tan rules out the possibility of a merger between Allied Banking
Corporation and the Philippine National Bank (PNB), hinting that he was more
inclined to sell rather than go through the tedious process of merging two
banks, the Philippine Star reported Wednesday.

Tan holds 44.98 percent of PNB after signing a dacion en pago agreement with
the Philippine Deposit Insurance Corp. (PDIC) which now also holds 44.98
percent of the bank.

Market rumors said that Tan was planning to work out the merger between PNB
and Allied Bank especially after PNB has successfully resolved the payment
of the P25-billion loan it got from the PDIC and the Bangko Sentral ng
Pilipinas (BSP).

PNB has so far settled P10 billion of its P25 billion loan in an agreement
where PNB ceded, transferred and conveyed to PDIC all the existing
collaterals covering the loan, in the form of mortgages covering twenty-two
selected government accounts and assets amounting to P10 billion.


NATIONAL POWER: Government Hires SSB to Arrange Bond Sale
---------------------------------------------------------
The government has hired Salomon Smith Barney Inc. and Nomura Holdings Inc.
to arrange a sale of US$750 million bonds to help fund the National Power
Corporation (Napocor), Bloomberg reported Tuesday, citing the Power Sector
Assets and Liabilities Management Corporation (PSALM) President Edgardo Del
Fonso.

The report said Salomon would arrange a sale of $500 million of 20-year
bonds, covered by a partial guarantee from the Asian Development Bank.
Nomura will sell $250 million of 18-year, yen-denominated debt.

Napocor needs money to repay debts and finance its operations, where losses
are forecast to rise at least threefold to 34 billion pesos ($653 million)
in 2002.


* President Arroyo Condones P18B Loans of Electric Cooperatives
---------------------------------------------------------------
The Department of Energy (DOE) on Monday welcomed the President Gloria
Macapagal-Arroyo's approval to condone some P18 billion outstanding loans of
the 119 electric cooperatives to the government.

"We are very pleased that the President has approved the condonation of the
rural electrification loans of the electric cooperatives. This will mean
lower electricity rates to more than six million households served by the
coops throughout the country," Energy Secretary Vincent S. Perez, Jr. said.

He explained that the condonation of the cooperatives rural electrification
loans incurred as of June 26 last year is only one of the programs that is
outlined in the Executive Order (EO) promulgating the Restructuring Program
of Electric Cooperatives.

"Members of the energy family worked together with Malaca¤ang until late
evening last Thursday to finalize the EO. While the Electric Power Industry
Reform Act mandates the condonation of the coops financial obligations, we
want to emphasize that there is a need to implement lasting reforms in the
operations of the electric cooperatives because the rural electric consumers
deserve the best service that they can get," Secretary Perez added.

Section 60 of RA 9136 provides for the condonation of all outstanding
financial obligations of electric cooperatives to National Electrification
Administration (NEA) and other government agencies, which were incurred for
purposes of financing rural electrification program upon the effectivity of
the law. The law says that the loans be assumed by the Power Sector Assets
and Liabilities Management Corp. (PSALM).

The energy chief said the EO will set forth the terms and conditions of the
reform program, whether mandated or self-imposed, on the electric
cooperatives. In her statement last Friday, President Arroyo thanked the
electric cooperatives for all their efforts in the rural electrification
program of the Government, citing the gains achieved in Lanao del Sur,
Masbate, Aklan and Basilan.

The President also stressed that a comprehensive restructuring program will
seal the fate of a developed and improved electrification service in the
countryside.

"I will not allow any EC to hold hostage to its inefficiencies the thousands
of member-consumers in its area coverage. Our people deserve the best, and I
will see to it that they get it," President Arroyo said.

President Arroyo also directed NEA to "exercise forcefully, strictly and
consistently its supervisory powers over the electric cooperatives."

Secretary Perez reiterated the President's order last Friday to see
improvements in the performance and electric service of the cooperatives in
the next 180 days following the issuance of the EO stating the measures to
be implemented by the cooperatives.
"I want to see dramatic impact results from the performance improvement and
rehabilitation and efficiency plans of ECs within the next 180 days, after
which for those which will fail, all other measures shall be open for
consideration," the President said.

"Our electric consumers are diligently paying their monthly electricity
bills but there a number of electric cooperatives that have been performing
poorly for so long. We can no longer afford our consumers to be put at a
disadvantage. We want to see drastic changes to happen," Secretary Perez
said.


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


ASIA PULP: Creditors Accept Less Debt Payment
---------------------------------------------
Creditors accepted a proposal from Asia Pulp & Paper (APP) to pay only US$60
million instead of US$100 million this month, as part of the ailing
Company's debt-restructuring plan, Asia Pulp said Wednesday.

ASIA PULP's entire debt is estimated at US$13.9 billion.

The remainder of the debts will be paid in September.

Last week the Indonesian Bank Restructuring Agency (IBRA) and foreign
creditors said APP has to pay US$100 million in August, and US$20 million
every month, as part an agreement for the restructuring of the company.


ACHIEVA LIMITED: Announces Resignation of Director
--------------------------------------------------
Achieva Limited announced Tuesday the resignation of one of its directors,
Chia Chong Leong effective August 20, 2002.

At half time, Achieva posted an operating loss before interest and tax of
$3.4 million compared to an operating profit before interest and tax of $6.2
million for the corresponding period last year.

Due to funding difficulties faced by Nanochip, Inc., Achieva took a decision
to voluntarily liquidate Nano Storage so as to cut losses.

In the event of a successful funding exercise by Nanochip, Inc., the Group
may be able to recover $965,000 as per the terms of the convertible notes
issued by Nanochip, Inc.

Achieva had earlier concluded an Asia-Pacific distribution agreement with
Nanochip, Inc., and would be able to benefit from the Asian distribution
rights for Nanochip's products should they go into commercial production.


CHARTERED SEMICONDUCTOR: Likely to Raise Funds in 6-9 Months
------------------------------------------------------------
OCBC Investment Research said Chartered Semiconductor Manufacturing might
raise funds through rights issue or share placement within 6 to 9 months,
Dow Jones reported Wednesday.

OCBC stressed that this may not be the best time to issue shares or rights
as share price is very weak.

TCR-AP reported in July that analysts are expecting Chartered Semiconductor
Manufacturing Ltd to post a second quarter loss of about US$104.5 million,
its sixth consecutive quarterly loss.

The report said the analysts don't expect loss-making Chartered to shift to
the black until the second half of next year.

DebtTraders reports that Chartered Semiconductor Mnfg's 2.500% convertible
bond due in 2006 (CSM06SGN1) trades between 89 and 91. For real-time bond
pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=CSM06SGN1


FLEXTECH HOLDINGS: Shares Down on Debt Concerns
-----------------------------------------------
Shares of Flextech Holdings declined S$0.015 or 6.38 percent at a new all
time low of 0.22 on concerns that the Company may have difficulties in
raising funds to meet debt payments, AFX Asia reported Wednesday.

Reports said the bleak outlook for the semiconductor industry is hurting the
stock as well as shares of its unit ASTI Holdings Ltd., which is likely to
post losses for the first half.

TCR-AP reported that Flextech Holdings will continue in its efforts towards
raising funds for additional working capital and further reduction of bank
borrowings.


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


TPI POLENE: Blames Conflict for Stake-Sale Delay
------------------------------------------------
Siam City Cement PCL's acquisition of a 77 percent stake in cement maker TPI
Polene PCL has been stalled due to conflicts among creditors, the Bangkok
Post reports.

According to TPI Polene chief executive Prachai Leophairatana, the problem
arose when Bangkok Bank wanted the company to scale down the debt buyback
conditions to only $95 million at a price not over 65 percent of the debt's
face value.

Prachai said that Bangkok Bank, which has owed about 20 percent of total
debt, has tried to partially amend TPI Polene's debt restructuring plan and
lobbied other creditors at a meeting on July 30. The proposed change has
caused dissatisfaction among other creditors who need high returns from the
sale of the company's interest.

Siam City Cement, a unit of Holcim Ltd. of Switzerland, is seeking to buy
the TPI stake for $375 million.


* DebtTraders Real-Time Bond Pricing
------------------------------------

Issuer             Coupon   Maturity   Bid - Ask   Weekly change
------             ------   --------   ---------   -------------

Asia Pulp & Paper     FRN     due 2001    10 - 12        -1
Asia Pulp & Paper     11.75%  due 2005  29.5 - 30.5      +2.5
APP China             14.0%   due 2010  27.5 - 29.5      +2
Asia Global Crossing  13.375% due 2006    18 - 20        +1
Bayan Telecom         13.5%   due 2006    19 - 21        0
Daya Guna Sumudera    10.0%   due 2007     3 - 5         0
Hyundai Semiconductor 8.625%  due 2007    61 - 66        0
Indah Kiat            11.875% due 2002    30 - 31        0
Indah Kiat            10.0%   due 2007  26.5 - 28.5      +1
Paiton Energy         9.34%   due 2014    70 - 75        0
Tjiwi Kimia           10.0%   due 2004    25 - 27        0
Zhuahi Highway        11.5%   due 2008    35 - 37        0

Bond pricing, appearing in each Thursday's edition of the TCR-AP, is
provided by DebtTraders in New York. DebtTraders is a specialist in global
high yield securities, providing clients unparalleled services in the
identification, assessment, and sourcing of attractive high yield debt
investments. For more information on institutional services, contact Scott
Johnson at 1-212-247-5300. To view our research and find out about private
client accounts, contact Peter Fitzpatrick at 1-212-247-3800. Real-time
pricing available at www.debttraders.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., Trenton, NJ USA, and Beard Group,
Inc., Washington, DC USA. Lyndsey Resnick, Maria Vyrna Nineza-Merlin, Maria
Cristina Pernites-Lao, Editors.

Copyright 2002.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or publication
in any form (including e-mail forwarding, electronic re-mailing and
photocopying) is strictly prohibited without prior written permission of the
publishers.  Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same firm for the
term of the initial subscription or balance thereof are $25 each.  For
subscription information, contact Christopher Beard at 240/629-3300.

                 *** End of Transmission ***