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

                   A S I A   P A C I F I C

           Thursday, June 12, 2003, Vol. 6, No. 115

                         Headlines

A U S T R A L I A

AMP LIMITED: Securities Commission Not Against Demerger Per Se
AUSTRALIAN MAGNESIUM: Administration Visible on Horizon
AUSTRALIAN MAGNESIUM: No More Govt Funds for Ailing Project
QANTAS AIRWAYS: Merger with Air New Zealand in Doubt
TOWER LIMITED: To Refinance Debt Via Capital Raising Exercise

TRANZ RAIL: Last Minute Govt Rescue Derails Likely Receivership


C H I N A   &   H O N G  K O N G

CHINA GAS: Subsidiary Forms Three-way Joint Venture


I N D O N E S I A

ASIA PULP: Ministers OK Debt Plan; Could Be Formalized Next Week
BANK MANDIRI: IPO Receives Warm Reception in Singapore Roadshow
GARUDA INDONESIA: Eyes Return of Regular Flights to China Soon


J A P A N

ALL NIPPON: OGM Set For June 26
ALL NIPPON: Shin Nihon Audits Financial Statements
MERRILL LYNCH: Author Alleges Corrupt Corporate Culture
RESONA HOLDINGS: Shares Up 17% on Bailout Report
RESONA HOLDINGS: Notes Subsidiary's Status Change

SKYMARK AIRLINES: Expects Losses Again This Year
TOYO CONSTRUCTION: Receives Financial Assistance From UFJ


K O R E A

CHOHUNG BANK: Union Bursts Into Bank Meeting
DAEWOO MOTOR: Truck Division Up For Sale
KOREA THRUNET: Hanaro Resumes Bid
SK CORPORATION: Myungin Files Lawsuit Against Three Directors
SK GLOBAL: Auditor Facing Uncertain Future

SK GLOBAL: Creditors on Final Stretch on Rescue Plan


M A L A Y S I A

HAP SENG: Clarifies Liquidation Statement
HAP SENG: Unit Enters Liquidation
MGR CORPORATION: Unveils Restructuring Scheme
NAUTICALINK BERHAD: Enters Purchase Deal With Business Sail
NAUTICALINK BERHAD: KLSE Requires Listing Requirements

NAUTICALINK BERHAD: Issues Debt Restructuring Proposal
NCK CORPORATION: Files Suit Against Purchasers
SASHIP HOLDINGS: Clarifies FY02 Financial Results
UNITED CHEMICAL: Court Grants Extension of Restraining Order


P H I L I P P I N E S

BAYAN TELECOMMUNICATIONS: Plans to Restructure US475M Debt
CE CASECNAN: NIA Fails to Pay Water Deliveries Due May 28
CEBU PRIVATE: ERC Orders Energy Supplier to Keep Power Steady
INTERNATIONAL CONTAINER: Aims to Cut Retained Earnings Deficit
LEAD LENDING: SEC Issues Cease Desist Order

MANILA ELECTRIC: Estimates P3.5B/Yr Refund Payment in Nine Years
MANILA ELECTRIC: ADB Mulls New Waiver on $100-M Loan
MANILA ELECTRIC: 4,000 Customers Get Cash Refund
NATIONAL POWER: ADB Says Show Concrete Progress First
PHILIPPINE LONG: Aims to Cut Debt by US$200M This Year

PHILIPPINE LONG: Sees Profit Up 38% This Year


S I N G A P O R E

CAPITALAND LIMITED: Striking-off Dormant Subsidiaries
L & M GROUP: Posts Notice of Shareholder's Interest
NEPTUNE ORIENT: Appoints Ang Kong Hua as New Director


T H A I L A N D

THAI PETROCHEMICAL: Speculation Makes Shares Actively Traded

     -  -  -  -  -  -  -  -

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


AMP LIMITED: Securities Commission Not Against Demerger Per Se
--------------------------------------------------------------
Following discussions Tuesday morning with Peter Willcox, the
Chairman of AMP Limited and its subsidiaries (AMP), and Andrew
Mohl, Chief Executive Officer of AMP, the Chairman of the
Australian Securities and Investments Commission (ASIC), David
Knott, has released these statement:

ASIC's POSITION ON AMP's OFFER TO SHAREHOLDERS

On Friday June 13, 2003, subscriptions will close for AMP's
current offer to shareholders (the Offer).

ASIC has been in discussions with AMP regarding the level of
financial and other information available to shareholders
respecting the Offer, and any additional information that might
assist shareholders to better assess AMP's demerger proposals
(the Demerger).

ASIC has also discussed these matters with the Australian
Prudential Regulation Authority and the UK Financial Services
Authority.

Following these discussions, ASIC's understandings may be
summarized as follows:

(1) Although the basic elements of the Demerger have been
    decided and announced by AMP, important issues of detail
    remain to be resolved. These issues have a capacity to
    impact on the final balance sheet composition of the AMP
    group companies post Demerger.

(2) AMP expects that its current equity raisings will be
    adequate to satisfy both commercial and regulatory
    requirements for equity capital in the Demerged companies.
    However, AMP has foreshadowed the possible need and
    desirability for restructuring its hybrid equity and debt.
    AMP is actively seeking to finalize outstanding details of
    its Demerger, but additional work is required to reach that
    position.

(3) The Demerger is subject to regulatory approvals that remain
    at an early stage of consideration. The information
    currently available to the prudential regulators is not
    sufficiently detailed for them to fully assess the
    proposals. Actuarial assessments of the future capital
    requirements of the Demerged companies will form part of the
    regulatory approval process, taking account of the more
    detailed proposals yet to be determined by AMP.

(4) ASIC will also require to be satisfied that relevant Scheme
    of Arrangement documents contain adequate information to
    enable shareholders to make an informed assessment of the
    Demerger.

ASIC has obtained from AMP, under the signature of its Chairman
and Chief Executive Officer, a written representation confirming
the above understandings. The representation specifically
asserts that AMP is not in possession of undisclosed information
that is in a disclosable form and would, if disclosed, be
material to the decision of a reasonable shareholder considering
the Offer (or such a shareholder who has already accepted the
Offer).

Based on this representation, and other enquiries made, ASIC is
satisfied that AMP has proviad as much information as it can to
shareholders about the Demerger at this stage. While this
situation is not ideal, ASIC considers that the opportunity for
retail shareholders to participate in the Offer (thereby
preventing dilution of their interests through the institutional
placements, and at a potential discount to those placements), is
one that many shareholders regard as important. ASIC is not
persuaded that regulatory intervention to prevent the Offer from
proceeding until AMP is able to finalize all outstanding details
would be in the best interests of shareholders. Such
intervention might result in shareholders ultimately paying a
higher price for shares under the Offer.

The fact that potentially important details of the Demerger have
yet to be decided are risks that shareholders need to consider
when deciding whether to accept the Offer. ASIC recommends that
shareholders seek independent advice from a stockbroker or
financial adviser before accepting the Offer.


AUSTRALIAN MAGNESIUM: Administration Visible on Horizon
-------------------------------------------------------
Australian Magnesium Corporation could fall into voluntary
administration if none of its major backers cough up AU$200
million soon, The Advertiser said Tuesday.

According to the paper, without the money the company cannot
draw down an AU$932 million- credit facility established last
year to fund its development.  At present, the paper said, the
company has less than AU$100 million in the bank, while its bank
debts are approaching AU$500 million.

Company directors are reportedly in talks with the Queensland
and the federal governments, the CSIRO and cornerstone investor,
Newmont Australia.  The three have a combined AU$600 million
investment in the project, with the government and Newmont
pitching AU$550 million.

The paper said Newmont is still assessing its position after
emergency talks with directors and construction group Leighton.
Queensland Premier Peter Beattie, on the other hand, said the
state government would look to juggle its financial commitment
to give the company more time to find a new partner.

"We won't put in any more funds because we've put in significant
funds but we are prepared to rearrange funds to keep AMC alive,"
Mr. Beattie said told The Advertiser.  "We may fail but I would
rather fail having tried to save the project than not tried at
all."


AUSTRALIAN MAGNESIUM: No More Govt Funds for Ailing Project
-----------------------------------------------------------
In a serious blow to efforts at avoiding voluntary
administration for Australian Magnesium Corporation, the federal
government ruled out late Tuesday further loans for the
beleaguered miner, Reuters said yesterday.

The government, however, remains committed to help the company
restructure its debt, but no new funds would be allocated beyond
the AU$150 million already committed, Finance Minister Nick
Minchin said in a statement.

"Stakeholders are working expeditiously to resolve issues
relevant to the restructuring proposal.  This restructure would
not involve the commonwealth contributing any more funding to
the project," Mr. Minchin said.

Reuters says the company is still in talks with Newmont Mining
Corp., which holds a 27.8% stake in the AU$1.5 billion mining
and smelting project in Queensland, and construction contractor
Leighton Holdings Ltd.  According to Reuters, Newmont may likely
offer help because half of Australian Magnesium's planned annual
output of 90,000 tonnes of strong and light-weight metal has
been pre-sold to automaker Ford Motor Co under a 10-year
contract worth about A$2 billion.  Newmont must repay a US$30
million loan to Ford if shipments do not begin in 2005.

Meanwhile, Queensland Premier Peter Beattie believes a scaled-
down version of the project could be viable, but he also ruled
out additional funding.  Queensland state has already loaned the
project AU$200 million.


QANTAS AIRWAYS: Merger with Air New Zealand in Doubt
----------------------------------------------------
The approval of the Qantas-Air New Zealand tie-up is now
doubtful with the revision Wednesday of the estimated economic
cost of the merger by New Zealand's anti-trust regulator.

Citing the Commerce Commission, Reuters said the revision
followed an audit of calculations made in its April draft
rejection of the proposal, which had been amended by
incorporating some technical corrections.

"The overall impact of the amendments is to increase the
negative net benefits from the proposed alliance between Air New
Zealand and Qantas," the Commission said.

To recall, the commission and its Australian counterpart, the
Australian Competition and Consumers Commission, earlier
rejected the merger, claiming there were insufficient public
benefits to outweigh the anti-competitive aspects of the
proposal.  Its previous estimate of the net detriment to the New
Zealand economy of the reduction in competition was between
NZ$156 million to NZ$402 million.  Its revised assessment pegs
the figure at between NZ$195 million and NZ$467 million in the
third year of the deal.

Under the plan, says Reuters, Qantas will take a 22.5% stake in
Air New Zealand for NZ$550 million ($315 million) and the two
airlines will form an alliance on routes to, from and within New
Zealand.  The airlines say the deal is needed to ensure their
long-term survival as the industry struggles with a slump in air
travel due to the combined effects of economic slowdown, war,
and disease.

The commission will conduct public hearings in August and hand a
final decision sometime in September, Reuters said.


TOWER LIMITED: To Refinance Debt Via Capital Raising Exercise
-------------------------------------------------------------
Fund manager, Tower Limited, announced Wednesday it will
refinance its entire NZ$300 million senior debt facilities after
incurring a ratings downgrade two weeks ago.

The New Zealand-based firm said it will embark on a NZ$200
million capital raising drive to refinance the NZ$110 million in
floating rate notes and NZ$190 million in syndicated bank debt.

"This decision follows a recent credit downgrade by Standard &
Poor's that could result in the banking syndicate requiring a
re-negotiation of pricing and terms of the existing syndicated
facility," Tower said in a statement.

S&P downgraded Tower to BBB-plus from A-minus late last month
and left the outlook on negative after Tower reported a NZ$154.4
million half-year loss, Reuters says.


TRANZ RAIL: Last Minute Govt Rescue Derails Likely Receivership
---------------------------------------------------------------
The government announced Monday a surprised rescue package for
Tranz Rail, a New Zealand transport operator rumored to be close
to sinking into receivership, The Advertiser said Tuesday.

According to the paper, the government is offering NZ$76 million
to buy a 35% stake in Tranz Rail and NZ$44 million to meet lease
payments.  It will also spend NZ$50 million on land and property
and a token NZ$1 to buy back the national rail network.

The ailing company has been the object of a takeover offer by
Toll Holdings, which is offering 75 New Zealand cents a share.
But the announcement of the government rescue pushed the firm's
share Tuesday to NZ$1.02, before easing to 93 New Zealand cents.

"The takeover offer appears to have become null and void so to
speak," said ABN Amro Craigs head of equities Bryon Burke in an
interview with The Advertiser.  "Now people are looking at the
ongoing earnings of the company, and obviously without the rail
lines people are saying it's not a bad thing."

According to New Zealand Finance Minister Michael Cullen, the
government came through for Tranz Rail after it begged for
government assistance: "It was threatened with going into
receivership because it could not meet lease payments for wagons
and locomotives due on June 19."

He clarified that the government would not be a long-term
shareholder, but wanted to secure rail as a vital piece of
infrastructure.

Tranz Rail, according to paper, has a 3800 km national rail
network, an inter-island ferry operation, a road freight
business, the Wellington commuter rail service and a half share
of long-distance passenger operator Tranz Scenic.  The
Government sold Tranz Rail a decade ago to a consortium led by
local investment bank Fay Richwhite and U.S. rail operator
Wisconsin Central for NZ$328.3 million.  Since then Tranz Rail
has struggled with a slowing rural economy and competition on
its inter-island ferry service.

Toll Holdings told The Advertiser it still plans to pursue its
NZ$91 million bid.


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


CHINA GAS: Subsidiary Forms Three-way Joint Venture
---------------------------------------------------
The Board is pleased to announce that Shenzhen Natural Gas, a
wholly owned subsidiary of China Gas Holdings Limited, entered
into the Agreement with China Gas Development and Huainan
Natural Gas on 10 June 2003, pursuant to which Shenzhen Natural
Gas, China Gas Development and Huainan Natural Gas have agreed
to establish Huainan JV to principally engage in the design,
construction and operation of natural gas pipeline network and
ancillary facilities as well as provision of piped natural gas
in Huainan, Anhui Province, the PRC.

Huainan JV will be owned as to 40% by Shenzhen Natural Gas, 30%
by China Gas Development and 30% by Huainan Natural Gas.  Upon
its establishment, Huainan JV will be a non-wholly owned
subsidiary of the Company.

Pursuant to the terms of the Agreement, the Group will make a
total investment of RMB49,000,000 (equivalent to approximately
HK$46,666,666.67), of which RMB28,000,000 will be contributed by
Shenzhen Natural Gas and RMB21,000,000 will be contributed by
China Gas Development in Huainan JV. The investment in the sum
of RMB49,000,000 (equivalent to approximately HK$46,666,666.67)
will be contributed by the Company by way of shareholders' loans
to Shenzhen Natural Gas and/or China Gas Development,
respectively, which will in turn use such money to pay up the
registered capital in Huainan JV (the "Proposed Investment").

Huainan JV is in the process of being set up pursuant to the
Agreement. Huainan JV will be principally engaged in the Natural
Gas Project.

Reference is also made to the Company's announcement dated 10
June 2002 in which it was announced that the Company and Hai Xia
Finance would set up the BVI Company, owned as to 49% by the
Company and 51% by Hai Xia Finance. The Directors announce that
the Company has entered into the Sale and Purchase Agreement
with Hai Xia Finance on 10 June 2003, pursuant to which Hai Xia
Finance agreed to sell and the Company agreed to purchase the
51% equity interest in the BVI Company currently held by Hai Xia
Finance for a consideration of US$51 (equivalent to
approximately HK$400). The Sale and Purchase Agreement was
completed on 10 June 2003.

The Proposed Investment constitutes a discloseable transaction
under the Listing Rules. A circular containing further details
of the Proposed Investment will be dispatched to the
shareholders of the Company as soon as practicable.

The Board further announced that pursuant to a conditional
subscription agreement made between the Company as issuer and
Eastern Linker Holdings Limited as subscriber on 10 June 2003,
the Subscriber agreed to subscribe in cash for a US$6,000,000
convertible note to be issued at par by the Company. The Note
will carry a right to convert into new shares of HK$0.01 each in
the issued share capital of the Company at an initial conversion
price of HK$2.00 per Share (subject to adjustment).

The Conversion Shares will be allotted and issued pursuant to
the general mandate granted to the Directors at the special
general meeting of the Company held on 6 February 2003.
No application will be made for listing of the Note.

Trading in the shares of the Company was suspended with effect
from 9:30 a.m. on 10 June 2003 at the request of the Company
pending the publication of this announcement. Application has
been made by the Company for the resumption of the trading of
shares of the Company with effect from 9:30 a.m. on 11 June
2003.

For complete copy of press release, please click on this link:
http://bankrupt.com/misc/china_gas.pdf


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


ASIA PULP: Ministers OK Debt Plan; Could Be Formalized Next Week
----------------------------------------------------------------
The US$6 billion debt-restructuring proposal of Asia Pulp &
Paper Co. Ltd. got the nod from Indonesia's economics ministers
Friday, nudging once more the company's effort to emerge from
its debt trap, Reuters said Monday.

The approval of the company's debt plan has been postponed quite
a few times now due to conflicting proposals from various
creditors.

"The government has approved the proposal... But legal
documentation need to be done (before the final agreement),"
senior APP Executive Gandhi Sulistyanto told Reuters.

The ministers' approval came after IBRA, foreign creditors
grouped under the Export Credit Agency (ECA) and Japan's Nippon
Export & Investment Insurance (NEXI) had agreed earlier on
Friday on the restructuring proposal, Mr. Sulistyanto added.

"The approval would pave the way for state agency IBRA, which
must obtain permission for any major debt restructuring from the
group of senior economics ministers (FSPC), to officially sign
the debt workout plan on Tuesday next week," IBRA Deputy
Chairman Mohammad Syahrial told Reuters.

With US$13.9 billion in obligations, APP called a debt
moratorium in early 2001, ensnaring creditors across the world.


BANK MANDIRI: IPO Receives Warm Reception in Singapore Roadshow
---------------------------------------------------------------
Judging from the good response from Singapore-based fund
managers, the US$256 million IPO of Bank Mandiri could be a
stunning success, Reuters said Tuesday.

The bank on Monday kicked off in Singapore its international
roadshow that will take bank executives to Europe and the United
States.  With the positive response in Singapore, Reuters said
the bank's IPO could be the largest yet since the Asian
financial crisis in the late 1990s.

The IPO will float on the market up to 15% of the state-run
bank.  The proceeds will be used to plug a wide hole on the
government's budget.

In April, Bank Mandiri surprised the regional bond market by
attracting an order book of about US$1 billion for a dollar bond
issue, nearly five times its initial offering of US$200 million
as investors hunted for higher yields.  The five-year bond issue
was set at US$300 million at a spread of 425 basis points (bps)
over comparable U.S. Treasuries.  The bonds tightened to less
than 400 bps on Monday, Reuters said.

The Mandiri shares, according to Reuters, will be sold at a
maximum price of around 700 rupiah a share, about 1.1 times 2002
book value.  The indicative price range was set at 0.9 to 1.1
times book value of 632 rupiah a share last week.

Formed in 1999 after the financial crisis, the bank rose from
the ruins of four bankrupt banks.  Its sale is part of the
government's commitment to the International Monetary Fund.
Pricing will be set on June 23 with listings on the Jakarta and
Surabaya stock exchanges scheduled for July 14.  ABN Amro
Rothschild, Credit Suisse First Boston and Indonesia's Danareksa
will handle the issue.


GARUDA INDONESIA: Eyes Return of Regular Flights to China Soon
--------------------------------------------------------------
Indonesian carrier, Garuda, said it will soon revive its package
tours to China and Hong Kong, after the World Health
Organization lifted its travel ban on said destinations.

According to Asia Pulse, before the travel ban, imposed to
contain the spread of SARS, the carrier had five flights a week
to China via Shanghai and Guangzhou.  Garuda President Indra
Setiawan told Bisnis Indonesia daily recently that socialization
program is needed before recommencing normal flights to China,
Hong Kong and Singapore.  The program will be followed with
offer of cheap package tours, he said.  Garuda also plans to
start regular flights to Beijing.


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


ALL NIPPON: OGM Set For June 26
-------------------------------
All Nippon Airways Co. Ltd. (ANA) announced that the 58th
Ordinary General Meeting (OGM) of its Shareholders would be held
as follows:

In the event that shareholders will not be able to attend the
meeting, they can exercise their proxy voting rights in writing.
To do so, please examine the Supplementary Information for
Exercise of Shareholder Voting Rights enclosed therein together
with this notice, then indicate whether you are FOR or AGAINST
each of the Agenda Items shown on the enclosed Form for Exercise
of Shareholder Voting Rights by placing a check mark in the
appropriate box. After this, please sign the form, or affix your
seal, and return the form to the address indicated.

Date, Location and Agenda of the Meeting

1. Date of meeting: June 26, 2003 (Thursday), 10:00 AM

2. Location:        ANA Hotel Tokyo, Prominence Room;
                    12-33, Akasaka 1-chome, Minato-ku, Tokyo
3. Objectives:

Matters to be reported:

a. Non-consolidated Balance Sheets as of March 31, 2003;
b. Business Report for the 53rd term (from April 1, 2002 to
March 31, 2003)
c. Non-consolidated Statement of Income for the 53rd term

Matters to be resolved:

a. Approval of the Proposal for Appropriation of Loss for the
53rd term
b. Reduction in Earned Surplus Reserve
c. Changes in certain sections of the Articles of Incorporation
d. Election of 15 Directors of the Company
e. Election of 1 Corporate Auditor of the Company


ALL NIPPON: Shin Nihon Audits Financial Statements
--------------------------------------------------
Shin Nihon & Co. (SNC) have audited the financial documents,
which are balance sheets, profit and loss statements, business
report (portions pertaining to accounting matters), proposal for
appropriation of loss, and supplementary schedules (portions
pertaining to accounting matters) for the 53rd accounting
period, covering April 1, 2002, through March 31, 2003 of All
Nippon Airways Co. Ltd. (ANA) pursuant to Article 2 of the Law
for Special Exceptions to the Commercial Code of Japan
Concerning Audit, etc. of Kabushiki-kaisha. The portions of the
business report and supplementary schedules that SNC have
audited are those items based upon or relevant to the Company's
accounting books and records. The preparation of financial
documents and supplementary schedules is the responsibility of
the Company's management.

The auditor's responsibility is to express our opinion on the
financial documents and supplementary schedules from our
independent position.

SNC conducted our audit in accordance with standards,
procedures, and practices generally accepted and applied in
Japan. The audit standards require us to obtain reasonable
assurance of whether the financial documents and supplementary
schedules are free of material false statements. The audit is
based on a testing, and includes examination of accounting
principles, the way such principles are applied to, and
estimates made by the management, as well as examining the
overall description in the financial documents and supplementary
schedules. We believe that the audit provided us with reasonable
basis necessary for us to express our opinion. These procedures
include those audit procedure applied to the Company's
subsidiaries, as we considered necessary.

Based on this audit, SNC's Opinion is as follows:

1. The accompanying balance sheets and profit and loss
statement present fairly the assets and the revenues and
expenses of the Company in accordance with relevant laws and the
Articles of Incorporation of the Company.

2. The business report (portions pertaining to accounting
matters) presents fairly the condition of the Company in
accordance with relevant laws and the Articles of Incorporation
of the Company.

3. The proposal for appropriation of loss is in accordance with
relevant laws and the Articles of Incorporation of the Company.

4. Supplementary schedules (portions pertaining to accounting
matters) contained no items, which should be cited under
stipulations of the Commercial Code.

Furthermore, subsequent events described in the business report
have material impacts on the Company's assets and the state of
profit and loss of the Company in the coming fiscal years.

There are no special relationships between or among the Company,
SNAC, or its Participating Partners that should be cited under
the stipulations of the Certified Public Accountants Law.

Report of the Board of Corporate Auditors

SNC, the Board of Corporate Auditors, received reports from each
Corporate Auditor on the method and results of the audit
concerning the performance of the duties of directors during the
53rd accounting term, covering April 1, 2002, to March 31, 2003.
After due deliberation, the Board of Corporate Auditors prepared
this report as follows:

1. Outline of the auditing methods

In accordance with auditing principles determined by the Board
of Corporate Auditors, each Corporate Auditor attended meetings
of the Board of Directors and other important meetings, received
reports on operation of business from directors and others,
examined documents relating to material decisions, observed the
operations and state of assets at the head office and other
major offices, and obtained operating reports from subsidiaries
as deemed necessary. Furthermore, the Corporate Auditors
received explanations from the independent auditors and examined
the financial documents and supplementary schedules thereof.

In addition to the auditing methods mentioned above, the
Corporate Auditors, when necessary, requested reports from
Directors on transactions by a director in competition with the
Company, transactions between a director and the Company in
which the director and the Company have a conflict of interest,
any provision of profit by the Company without compensation, any
irregular transactions between the Company and subsidiaries or
shareholders, and acquisition and disposition of treasury
shares, and investigated such transactions in detail.

2. Results of the audit

     1. The Board of Corporate Auditors found that the methods
and results of the audit conducted by Shin Nihon & Co., are
appropriate.

     2. The business report presents fairly the condition of the
Company in accordance with relevant laws and the Articles of
Incorporation of the Company.

     3. Concerning the agenda item for the Ordinary General
Meeting of Shareholders pertaining to the Appropriation of the
net loss, we have found no items, which should be pointed out in
light of the condition of Company's assets.

     4. Supplementary schedules fairly presents items to be
disclosed therein and we have found no items, which should be
pointed out.

     5. There were no material instances where directors engaged
in inappropriate activities or violated laws or the Articles of
Incorporation of the Company in the performance of their duties,
including their duties concerning the subsidiaries of the
Company.

Moreover, there were no instances where directors violated their
duties regarding transactions by a director in competition with
the Company, transactions between a director and the Company in
which the director and the Company have a conflict of interest,
any provision of profit by the Company without compensation, any
irregular transactions between the Company and subsidiaries or
shareholders, and acquisition and disposition of treasury
shares.

Shin Nihon & Co. Auditors:

Masaru Katabuchi, CPA
Representative and Participating Partner
Kazuo Tanimura, CPA
Representative and Participating Partner
Kenzo Oka, CPA
Participating Partner

The Board of Corporate Auditors:

Kazuhiko Komiya
Corporate Auditor (Standing)
Wataru Kubo
Corporate Auditor (Standing)
Yoshiro Ito
Corporate Auditor

Note:

1. Shigeru Ono, Corporate Auditor, has not affixed his seal
since he was absent from the Board of Corporate Auditors held on
May 14, 2003.

2. Corporate Auditors, Yoshiro Ito and Shigeru Ono are external
auditors as provided for in Artricle 18-1 of the Law Concerning
Special Measures under the Commercial Code for Auditors of
Incorporated Enterprises.


MERRILL LYNCH: Author Alleges Corrupt Corporate Culture
-------------------------------------------------------
The one-year statute of limitations for a defamation action by
Merrill Lynch against author, Keith Schooley, has run out.  In
his book, Merrill Lynch: The Cost Could Be Fatal -- My War
Against Wall Street's Giant (2002, Lakepointe Publishing, 282
pp.), Schooley alleges wrongdoing at Merrill Lynch ranging from
brokers to senior management, including two cover-ups of a
widespread cheating scandal.  He also alleges that the firm
employed deceptive practices during a judicial proceeding; made
misrepresentations to regulators; and has a corrupt corporate
culture.

"Merrill Lynch's silence concerning my allegations is, in my
opinion, tantamount to an admission of 'guilt'," Schooley says.
"Why else would a Company that people are supposed to trust with
their money not defend the reputation of its franchise name?"

Schooley recently sent a letter to the SEC urging it to examine
what he believes is the clear failure of Merrill Lynch's outside
directors to appropriately respond to his warning that they had
been deceived by the firm's senior management and/or inside
directors concerning alleged wrongdoing.

"I understand that the SEC's stated policy is to take action
against outside directors who seriously neglected their duties,"
Schooley wrote. "While the underlying wrongdoing that I reported
may not be on the scale of Enron, nevertheless, it is
disturbing.  The question remains -- at what point do you hold
the directors responsible?  Is it only after an Enron-like
debacle, or prior to?"

Schooley's book has generated controversy.  Nationally known
publishing legal guru, Ivan Hoffman, a Los Angeles attorney,
advised Schooley prior to publication not to go forward with the
book because he would likely be a defendant in lawsuits in
multiple jurisdictions.  All primary underwriters of media
perils insurance declined to provide coverage for the book.
Famed Oklahoma attorney, Stephen Jones, has called the book
dangerous because it "names names, takes no prisoners, and is
explosive."  And, a publicized book-signing event was recently
cancelled because of pressure brought to bear by Merrill Lynch
employees.

As to Merrill Lynch's behavior and silence, Schooley says,
"Corporate integrity, or the lack thereof, flows from the top
down.  As they say, 'The cover-up is worse than the crime.'
Frankly, the disinfectant of sunlight seems to make these guys
run for cover."


RESONA HOLDINGS: Shares Up 17% on Bailout Report
------------------------------------------------
Shares in Resona Holdings Inc. increased 17 percent to 83 yen on
Wednesday following the government's decision to acquire three-
quarters of the Company's voting stock, paving the way for the
bank to recover without outright nationalization, Bloomberg
reports. The stock earlier rose as much as 21 percent, the
highest since September.

Japan's government announced Tuesday that it will pay 52 yen for
5.7 billion common shares. It will also buy 8.32 billion
preferred shares with voting rights for 200 yen each. The bank
will receive a combined 1.96 trillion yen ($16.6 billion),
giving the government as much as 74 percent of Resona's voting
rights.


RESONA HOLDINGS: Notes Subsidiary's Status Change
-------------------------------------------------
Resona Bank, Ltd. Resona Bank, a subsidiary of Resona Holdings,
Inc. Resona HD, will temporarily be excluded from Resona HD's
consolidated subsidiaries, owing to the issuance of new shares
by Resona Bank and the share exchange contract, which it
concluded with Resona HD, in connection with its application for
an infusion of public funds. As a result, Resona Bank will be
excluded from consolidation effective from the date of issuance
of new shares, and then will return to a consolidated subsidiary
of Resona HD effective from the date of the share exchange.

Accompanying the aforementioned change in composition of
ownership, certain change in ownership composition will also
take place for other subsidiaries of Resona HD for which Resona
Bank owns directly or indirectly certain portion of their
shares.

1. Subsidiaries whose ownership composition changes
Subsidiaries subject to change in their ownership composition
are Resona Bank, Cosmo Securities Co., Ltd. and 49 others.

2. Reason for the change in ownership composition

(1) Exclusion from consolidation

The Deposit Insurance Corporation will subscribe for the common
and preferred shares to be issued by Resona Bank, totaling �1.96
trillion, on July 1, 2003. As a result of the subscription, the
portion of voting rights attached to Resona Bank's shares, which
Resona HD owns will decline from current 100 percent to 7.12
percent, and thus Resona Bank will be excluded from Resona HD's
consolidated subsidiaries. (For outline of the new shares,
please refer to the announcements released separately.)
In connection with this change, certain change in ownership
composition will also take place for other subsidiaries of
Resona HD for which Resona Bank owns directly or indirectly
certain portion of their shares.

(2) Back to status as consolidated subsidiaries

When Resona HD and Resona Bank complete their share exchange on
August 7, 2003, the percentage of the voting rights owned by
Resona HD will be recovered to 100 percent and Resona Bank will
become its consolidated subsidiary once again. Aforementioned
transactions are subject to approvals by the forthcoming general
meeting of shareholders and competent government authorities.
(For outline of the share exchange, please refer to the
announcement released separately.) In relation to this change,
other subsidiaries of Resona HD for which Resona Bank owns
directly or indirectly certain portion of their shares will also
become consolidated subsidiaries of Resona HD once again.

3. Impact of this development on the Earnings of Resona HD
This development does not affect the earnings forecast of Resona
HD for the fiscal year ending March 31, 2004, which was
announced on Tuesday.

Resona's Outlook for the Fiscal Year Ending March 2004 and
dividends can be accessed at http://www.resona-hd.co.jp/e-
ir/pdf/i_01/030610_2a.pdf


SKYMARK AIRLINES: Expects Losses Again This Year
------------------------------------------------
Skymark Airlines Co. expects to post losses for the year ending
October 31 due to startup costs for new domestic routes and
losses related to airplane damage, Dow Jones reports. The
airline, which hasn't posted a profit since its establishment in
1996, is now expecting to post a parent pretax loss of Y430
million and a net loss of Y640 million on revenue of Y22.45
billion. Skymark has no subsidiaries and only reports parent
results.

Separately, Skymark has signed a six-year leasing contract with
General Electric Capital Aviation Services for another airplane,
bringing its fleet to a total of five planes. From mid-December,
the Company plans to use the Boeing 767-300ER for flights from
Tokyo to Fukuoka and to Kagoshima, both in Kyushu in southern
Japan.


TOYO CONSTRUCTION: Receives Financial Assistance From UFJ
---------------------------------------------------------
UFJ Holdings, Inc. announced that UFJ Bank Limited and UFJ Trust
Bank Limited, both of wholly owned subsidiaries of UFJ Holdings,
Inc., decided to give financial assistance to Toyo Construction
Co.,Ltd. (Toyo Construction), as described below, in order for
Toyo Construction to execute its new medium-term business plan,
which was announced on June 10, 2003.

1. Debt forgiveness
   UFJ Bank: 15,181 million yen
   UFJ Trust Bank: 4,481 million yen

2. Subscription of preferred shares
   UFJ Bank: 3,639 million yen
   UFJ Trust Bank: 747 million yen

Impact on earnings of UFJ Holdings

UFJ Holdings does not change the current forecast of its
consolidated financial results for the fiscal year ending March
31, 2004.


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


CHOHUNG BANK: Union Bursts Into Bank Meeting
--------------------------------------------
Labor union members of Chohung Bank are strongly resisting the
sale of the Korea Deposit Insurance Corporation's stake in the
bank, JoongAng Daily reported Tuesday. The labor union on Monday
forcibly occupied the conference room at the Korea Deposit's
headquarters in central Seoul, where Korea Deposit officials on
its estimate of the bank's assets were briefing a panel of the
Public Fund Oversight Committee examining the Chohung Bank sale.
Heo Heung-jin, who heads the Chohung Bank union, delivered a 10-
minute protest against the secret meeting.

During the meeting, Korea Deposit said that Shinhan Accounting
Corporation, which examined the value of the bank, placed an
estimated value on Chohung of 5,000 won ($4.16) to 6,900 won per
share. That is higher than the value proposed by Morgan Stanley,
4,690 won to 6,400 won per share.


DAEWOO MOTOR: Truck Division Up For Sale
----------------------------------------
Daewoo Commercial Vehicle Co., a truck division of Daewoo Motor,
will be put up for bidding next month under the management of
KPMG Consulting Inc., Asia Pulse reports, citing Daewoo Motor
Chairman Lee Jong-dae on Tuesday. Lee said there are three
possible buyers for the truck maker with an annual production
capacity of 20,000 units, which has made operational profits for
months. Lee expressed fears that the sale of the overseas
facilities would take 5-10 years to complete.


KOREA THRUNET: Hanaro Resumes Bid
---------------------------------
Hanaro Telecom Inc. is in talks with foreign investors to raise
as much as $1.4 billion in fresh funds on the condition that it
takes over its smaller rival Korea Thrunet Co., the Korea Herald
reported last week. Hanaro has been in negotiations with
American International Group and Newbridge Capital for the fund
injection. Thrunet filed for court receivership in March,
cracking under the burden of heavy debt and tough competition in
the broadband market.


SK CORPORATION: Myungin Files Lawsuit Against Three Directors
-------------------------------------------------------------
Sovereign Asset Management's legal advisor Myungin filed on
Monday a lawsuit with a Seoul court against three directors of
SK Corporation namely Chey Tae-won, Son Kil-seung, and Kim
Chang-geun, the Korea Times said Tuesday. The law firm
petitioned the court to prevent the directors from voting for a
bailout of SK Global because the three are facing legal
proceedings for their roles in SK Global accounting scandal, and
they have conflict of interest on the issue.

Meanwhile, Asia Pulse reported that the British-based Hermes
Investment Management Ltd. filed an injunction through the
Myungin Law firm to prevent SK Corporation from taking part in a
bailout program to save SK Global.

DebtTraders reports that SK Corp.'s 7.500% bond due in 2006
(YUKO06KRN1) trades between 97 and 99.5. For real-time bond
pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=YUKO06KRN1


SK GLOBAL: Auditor Facing Uncertain Future
------------------------------------------
Young Wha Corporation, the long-standing auditor of SK Global,
may be forced to shut down its business if found to have
conducted negligent audits on the SK trading unit, the Korea
Times reports, citing an unnamed Financial Supervisory Service
(FSS) official. The FSS has almost completed its audit of the
local accounting firm. If FSS uncovers that the auditor was
intentionally involved in SK Global's accounting scandal, it
could possibly ask the Ministry of Finance and Economy to order
the shutdown or business suspension of the accounting firm.


SK GLOBAL: Creditors on Final Stretch on Rescue Plan
----------------------------------------------------
The creditors of the ailing SK Global have been wrapping up
their schedules for debt-for-equity conversions and debt
restructuring, aimed at keeping the Company afloat, Digital
Chosun said on Tuesday. The creditors will finalize a debt-
rescheduling and normalization plan for the firm early next
week, when the board of SK Corporation is to approve of the
firm's conversion of 850 billion won in receivables from SK
Global.

On Monday, main creditor Hana Bank proposed that the domestic
creditors of the ailing unit of SK Group convert 2.85 trillion
won of their total exposure to the firm into equity, and that
other creditors not participating in the conversion buy out 30
to 31.5 percent of their loans. Last week, domestic creditors
proposed to 12 foreign creditors of the firm that the foreign
creditors buy out the outstanding loans at 38 percent of their
total exposure of 1.3 trillion won.


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


HAP SENG: Clarifies Liquidation Statement
-----------------------------------------
Hap Seng Consolidated Berhad refers to its announcement of 4
June 2003 pertaining to the completion of the voluntary
liquidation of Skagen Fishing Network A/S (SFN). In the said
announcement, it was erroneously stated that SFN had been
inactive since its incorporation. The Company clarified that SFN
became inactive from year 1999 and not from the date of
incorporation as previously stated.


HAP SENG: Unit Enters Liquidation
---------------------------------
Hap Seng Consolidated Berhad (HSCB) refers to its announcements
dated 24 January 2003 and 24 March 2003 pertaining to the
Members' Voluntary Liquidation of Drei Kronen 1308 Euro-Asia
(DKEA), a private limited Company incorporated in Bermuda on 24
March 1997 with 50 percent shareholding therein being held by
Euro-Asia Food & Beverage (Bermuda) Limited which in turn is the
wholly-owned subsidiary of HSCB. The Board of Directors of HSCB
announced that its lawyers Conyers Dill & Pearman have advised
that the Bermuda Registrar of Companies has liquidated DKEA with
the issuance of the Certificate of Dissolution.


MGR CORPORATION: Unveils Restructuring Scheme
---------------------------------------------
The restructuring scheme of MGR Corporation Berhad (MGR)
involves the following:

(i) Incorporation of a new public limited Company in Malaysia,
Crest Builder Holdings Berhad CRESBLD, for the purpose of
implementing the Restructuring Scheme;

(ii) Acquisition by CRESBLD of MGR involving the issuance of
2,512,500 new CRESBLD shares to the existing shareholders of MGR
on the basis of one (1) new CRESBLD share for every twenty (20)
MGR shares held Share Exchange;

(iii) Acquisition by CRESBLD of the entire issued and paid up
share capital of Crest Builder Sdn Bhd CBSB from CBSB vendors
for a total consideration of RM92,727,000 to be satisfied by the
issuance of 92,727,000 new CRESBLD shares at an issue price of
RM1.00 per share CBSB Acquisition;

(iv) Exemption to the CBSB vendors from the obligation to
undertake a mandatory take-over offer for the remaining CRESBLD
shares not already owned by the CBSB vendors upon the completion
of the CBSB Acquisition and exemption to Yong Soon Chow YSC from
the obligation to undertake a mandatory take-over offer for the
remaining CRESBLD shares not already owned by YSC upon the
conversion/exercise of the Irredeemable Convertible Unsecured
Loan Stocks ICULS/Redeemable Convertible Unsecured Loan Stocks
RCULS/warrants to be issued to/procured by YSC pursuant to the
Restructuring Scheme;

(v) Rights issue of 24,000,000 warrants by CRESBLD to the
shareholders of CRESBLD upon the completion of the Share
Exchange and the CBSB Acquisition on the basis of 1.008 warrants
for every four (4) CRESBLD shares held at an issue price of
RM0.30 per warrant Rights Issue;

(vi) Debt settlement by CRESBLD of the amount owing by MGR to
MGR creditors involving the following:

(a) Cash payment of RM7,000,000 to MGR creditors and/or MGR
creditors' agent;

(b) Issuance of RM18,500,000 nominal value of ICULS at 100
percent of the nominal value of RM1.00 each and RM10,000,000
nominal value of RCULS at 100 percent of the nominal value of
RM1.00 each by CRESBLD to MGR creditors and/or MGR creditors'
agent ICULS and RCULS Issue;

(c) Transfer of 3,000,000 CRESBLD shares from YSC to MGR
creditors and/or MGR creditors' agent Transfer of CRESBLD
Shares; and (d) Put and calls options in respect of the ICULS
and RCULS to be entered between YSC and MGR creditors and/or MGR
creditors' agent.

(vii) Offer for sale/placement by YSC and MGR creditors and/or
MGR creditors' agent of 16,200,000 CRESBLD shares to the former
shareholders of MGR, Malaysian public and potential investors at
an offer price of RM1.00 per share Share Offer;

(viii) Offer for sale by MGR creditors and/or MGR creditors'
agent of RM100,000 nominal value of ICULS at 100 percent of the
nominal value of RM1.00 each and RM100,000 nominal value of
RCULS at 100 percent of the nominal value of RM1.00 each to the
employees of the CRESBLD Group ICULS and RCULS Offer; and

(ix) Transfer of the listing status of MGR on the Second Board
of the Exchange to CRESBLD (which will be listed on the Main
Board).

(The above proposals are collectively referred to as
"Restructuring Scheme

Kindly be advised that the following securities of CRESBLD:

(i) Entire issued and paid up share capital comprising
95,249,500 ordinary shares of RM1.00 each Shares;

(ii) RM18,500,000 nominal value of 3-year 3 percent-7 percent
Irredeemable Convertible Unsecured Loan Stocks 2003/2006 ICULS;

(iii) RM10,000,000 nominal value of 5-year 1 percent-9 percent
Redeemable Convertible Unsecured Loan Stocks 2003/2008 RCULS;
and

(iv) 24,000,000 Warrants 2003/2013 Warrants

(collectively referred to as "Securities arising from the
Restructuring Scheme, will be admitted to the Official List of
the Exchange, in place of MGR which will be delisted, and the
listing and quotation on the Main Board for the Shares under the
"Construction" sector, and ICULS, RCULS and Warrants under
"Loans" sector will be granted with effect from 9.00 a.m.,
Thursday, 12 June 2003, on a "Ready" basis pursuant to the Rules
of the Exchange.

The Stock Short Name, Stock Numbers and ISIN Code of the
Securities are as follows:

Security Stock Short Name Stock Number ISIN Code
Shares CRESBLD 8591 MYL8591OO009
ICULS CRESBLD-LA 8591LA MYL8591LAG28
RCULS CRESBLD-LB 8591LB MYL8591LBI25
Warrants CRESBLD-WA 8591WA MYL8591WAN59

The reference price for CRESBLD's Shares is RM1.00 and the
trading limit will be 500 percent.
ICULS

The Conversion Price is RM1.00 for each new ordinary share and
shall be satisfied by tendering RM1.00 nominal value of ICULS
for one (1) new CRESBLD share.

The ICULS shall be convertible into CRESBLD shares during the
period commencing from and including the date of issue of the
ICULS (25 February 2003) up to and including 5.00 p.m. (Kuala
Lumpur time) on Maturity Date (24 February 2006), but excluding
those days during that period on which the Register of Members
and/or the ICULS Register is or are closed.

RCULS

The Conversion Price is RM1.00 for each new ordinary share and
shall be satisfied by tendering RM1.00 nominal value of RCULS
for one (1) new CRESBLD share.

The RCULS shall be convertible into CRESBLD shares during the
period commencing from and including the date of issue of the
RCULS (25 February 2003) up to and including 5.00 p.m. (Kuala
Lumpur time) on Maturity Date (22 February 2008), but excluding
those days during that period on which the Register of Members
and/or the RCULS Register is or are closed.

Warrants

Each Warrant will entitle its registered holder, at any time
during the Exercise Period, to subscribe for one (1) new
ordinary share of RM1.00 each in CRESBLD at the Exercise Price.

The Exercise Price is RM1.00 per new CRESBLD share.

The Exercise Period is at any time during the period commencing
from and including the date of issue of the Warrants (30 May
2003) up to and including 5.00 p.m. (Kuala Lumpur time) on
Maturity Date (30 May 2013), but excluding those days during
that period on which the Register of Members and/or the Warrants
Register is or are closed. Warrants not exercised during the
said Exercise Period will thereafter lapse and cease to be valid
for any purpose.

Kindly also be advised that the Shares, ICULS, RCULS and
Warrants are prescribed securities. Dealings in the Shares,
ICULS, RCULS and Warrants should be carried out in accordance
with the Securities Industry (Central Depositories) Act, 1991
and the Rules of Malaysian Central Depository Sdn Bhd.

Kindly also be advised that only "free securities" can be
utilized for settlement of trades involving the Shares, ICULS,
RCULS and Warrants.


NAUTICALINK BERHAD: Enters Purchase Deal With Business Sail
-----------------------------------------------------------
The Board of Directors of Nauticalink Berhad (NB) announced that
it has entered into a Conditional Sale and Purchase Agreement
with Business Sail (M) Sdn Bhd BS on 5th June 2003 for the
proposed disposal of 600,000 ordinary shares of RM1.00 each,
representing 100 percent of the issued and paid-up share capital
of Asia Slipway & Engineering Sdn Bhd ASE.

Disposal Consideration

The consideration of RM120,000 is arrived at on a willing buyer-
willing seller basis after taking into consideration of the
audited net tangible assets of ASE as at 31st December 2002 and
the management accounts for the first quarter period ended 31st
March 2003.

The disposal consideration shall be satisfied by BS as follows:-

- A sum of RM10 shall be paid to NB upon execution of the
Agreement and

- The balance of the disposal consideration of RM119,990 shall
be paid within 6 months upon securing the approval from all
relevant authorities in respect of the proposed disposal.

Background Information On ASE

ASE was incorporated on 24th September 1985 in Malaysia under
the Companies Act, 1965. It has a present authorized share
capital of RM1,000,000 comprising 1,000,000 ordinary shares of
RM1.00 each and an issued and paid-up share capital of RM600,000
comprising 600,000 ordinary shares of RM1.00 each. ASE is a
wholly owned subsidiary Company of NB and is principally
involved in building, repairing, cleaning, storing and providing
slipway for barges, vessel and ships. ASE has an audited NTA of
RM129,028 and NTA per share of RM0.215 as at 31st December 2002.

Original Cost Of Investment
NB acquired ASE on 4 March 1996 at a cost of RM2,413,565.

5. Proposed Utilization Of Proceeds From The Proposed Disposal
The proceeds from the proposed disposal will be utilized as
working capital for the Group of NB.

6. Liability Assumed By BS Pursuant To The Proposed Disposal
There is no liability to be assumed by BS pursuant to the
proposed disposal save for the operating liabilities of ASE.

7. Rationale For The Proposed Disposal
The proposed disposal of ASE is mainly due to unhealthy
financial condition and the impact on reduction of overdraft
facility in ASE recently. In addition, ASE was making un-audited
net loss of RM276,000 in the first quarter period ended 31st
March 2003. Thus, this proposed disposal is expected at least to
lowering its gearing position.

8. Conditions Precedent
The proposed disposal is conditional upon inter alia, the
following:

- The approval of the Foreign Investment Committee FIC; and
- The approval of the Securities Commission SC and all other
relevant authorities necessary for the transaction being
obtained.

9. Directors' and Substantial Shareholders' Interests
Insofar as the Directors of NB are aware, none of the Directors
or substantial shareholders of NB or any person connected with
BS has any interest, directly or indirectly, in the Proposed
Disposal.

10. Effects Of The Proposed Disposal

10.1 Share Capital
The Proposed Disposal will not have any effect on the share
capital of NB, as the Proposed Disposal will be fully satisfied
in cash.

10.2 Earnings
The Proposed Disposal will not have a material impact on the
earning for the financial year ending 31st December 2003.

10.3 Substantial Shareholders
The Proposed Disposal will not have any effect on the
shareholding structure of NB as the Proposed Disposal will be
fully satisfied in cash.

10.4 Loss on Disposal
The expected loss arising from the Proposed Disposal is
RM2,293,565.

11. Statement By Board Of Directors
The Board of Directors of NB is of the opinion that the proposed
disposal is fair and rationale and in the best interest of NB
and its shareholders. The transaction will be completed within 6
months from the date of the Sale and Purchase Agreement.

12. Departure From Securities Commission SC Policies and
Guidelines.

The terms of the disposal of ASE complies with the SC
requirements.

13. Documents For Inspection

The Agreement is available for inspection during the business
hours at the registered office of NB at 8th Floor, Plaza
Pekeliling, Jalan Kampar, Off Jalan Tun Razak, 50400 Kuala
Lumpur.


NAUTICALINK BERHAD: KLSE Requires Listing Requirements
------------------------------------------------------
On 23 February 2001, Nauticalink Berhad (NB) announced that the
Company is an affected listed issuer pursuant to Practice Note
4/2001 PN4/2001 of the Kuala Lumpur Stock Exchange KLSE Listing
Requirements and is accordingly required to comply with the
requirements of PN4/2001. In this respect, NB is required to
make a requisite announcement to KLSE of its plan to regularize
the financial condition of the Company and implement the said
plan to ensure that the Company's shares will not be delisted.

On 28 March 2003, NB announced that the Company had entered into
a Memorandum of Understanding with Norhamzah Nordin NHN and Mohd
Azam Mohd Nor MAM for the purpose to participate in the proposed
restructuring of the Company through the setting up of a Newco
namely Orion Unggul Sdn Bhd Orion to acquire the direct and
indirect shareholdings of NHN and MAM in Hexariang Sdn Bhd
Hexariang to regularize the financial condition of NB.

Further to the announcement on 28 March 2003, on behalf of the
Board of Directors of NB, Public Merchant Bank Berhad PMBB is
pleased to announce the following:

(a) Orion had, on 6 June 2003, entered into a conditional share
sale agreement with Kosmo Seraya Sdn Bhd Kosmo, the vendor of
Hexariang, for the proposed acquisition of the entire issued and
paid-up capital of Hexariang Share Sale Agreement for a total
purchase consideration of RM70,000,000 to be satisfied by the
issuance of 70,000,000 Orion ordinary shares of RM1.00 per share
Orion Shares;

(b) The Company, Orion and Kosmo, had also, on 6 June 2003,
entered into a corporate restructuring agreement for the
purposes of giving effect and implement a proposed restructuring
scheme Corporate Restructuring Agreement. The proposed
restructuring scheme involves, inter-alia, the following:

(i) Proposed exchange of shares pursuant to a scheme of
arrangement under section 176 of the Companies Act, 1965 whereby
the existing issued and paid-up share capital of NB of
RM19,999,000 comprising 19,999,000 ordinary shares of RM1.00
each in NB NB Shares will be exchanged with new 1,999,900 Orion
Shares on the basis of one (1) new Orion Share for every ten
(10) existing NB Shares held in the Company Proposed Share
Exchange

(ii) Proposed settlement of debts owing to the creditors of NB
amounting to approximately RM47.1 million based on the cut-off
date as at 31 December 2002, by way of a scheme of arrangement
pursuant to section 176 of the Companies Act, 1965 Proposed Debt
Restructuring via the issuance of RM5,515,212 nominal value of 2
percent 3-year irredeemable convertible unsecured loan stocks by
Orion ICULS;

(iii) Proposed acquisition and settlement by Orion of the
following:

(a) The entire issued and paid-up capital of the Hexariang for a
total purchase consideration of RM70,000,000 to be satisfied by
the issuance of 70,000,000 new Orion Shares; and

(b) The RM3,400,000 7 percent 5-year convertible redeemable
guaranteed loan stocks Loan Stocks in Hexariang with Perbadanan
Nasional Berhad PNS for a total purchase consideration of
RM3,400,000 to be satisfied by the issuance of 3,400,000 new
Orion Shares.

(The above is collectively referred to as the "Proposed
Acquisitions

(iv) Proposed de-listing of the Company from the Second Board of
KLSE and the transfer of the listing status of the Company to
Orion and the listing and quotation for the entire enlarged
issued and paid-up capital of Orion on the Second Board of KLSE
Proposed Listing; and

(v) Proposed exemption to the shareholders of Hexariang and/or
persons acting in concert with them from the obligations of a
mandatory general offer under the provisions of the Malaysian
Code on Takeovers and Mergers, 1988 Code for the remaining
shares in Orion not already owned by the shareholders of
Hexariang and/or persons acting-in-concert with them after the
proposals and following the exercise of the options over the
Orion Shares pursuant to a put and call option agreement to be
entered into between NHN and MAM and PNS Proposed Exemption.
(Items (i) to (v) of the above are collectively known as the
"Proposed Restructuring Scheme

Further details of the Proposed Restructuring Scheme are set out
in the ensuing paragraphs.

2. PROPOSED SHARE EXCHANGE

The Proposed Share Exchange will be undertaken under Section 176
of the Companies Act, 1965, which entails the exchange of
19,999,000 NB Shares with 1,999,900 new Orion Shares on the
basis of one (1) new Orion Share for every ten (10) NB Shares
held by the existing shareholders of NB. Thereafter, NB will
become a wholly subsidiary of Orion.

The new Orion Shares to be issued pursuant to the Proposed Share
Exchange will upon allotment, rank pari passu in all respect
with the existing Orion Shares in issue save and except that
they shall not be entitled to any dividends, rights, bonuses,
issue, allotment and / or any other allotments or distributions,
the entitlement date (namely the date as at the close of
business on which the shareholders must be registered in order
to be entitled to any dividends, rights, allotments and / or
distributions) of which is prior to the date of the allotment of
the Orion Shares.


NAUTICALINK BERHAD: Issues Debt Restructuring Proposal
------------------------------------------------------
The proposed debt restructuring of Nauticalink Berhad (NB)
entails a settlement of debts owing by the NB Group to its
creditors comprising financial institutions whose debts are
secured by a charge or claim to title on assets of the NB Group
Secured FI Creditors, unsecured financial institution creditors
with corporate guarantees issued by NB Unsecured FI Creditors
and trade creditors of NB Trade Creditors (collectively referred
to as "Creditors, amounting to approximately RM47.1 million as
at 31 December 2002 by way of a scheme of arrangement, which
principle terms are summarized as follows:

(a) All interest (accrued up to the completion of the Proposed
Restructuring Scheme) will be waived;

(b) All proceeds from the disposal of encumbered assets of the
NB Group will be distributed on an equitable basis to the
respective Secured FI Creditors;

(c) Estimated realizable net proceeds from the disposal of
unencumbered assets (if any) of the NB Group will be distributed
among the respective Creditors on an equitable basis by way of a
proposed winding up to be undertaken after the implementation of
the Proposed Restructuring Scheme in either of the following
manner:

(i) Under the management of Orion, whereby a liquidator or an
official assignee will be appointed to liquidate or wind up the
NB Group; or

(ii) The NB Group will be sold to a stakeholder appointed by the
Creditors for RM1.00 who will administer the winding up on
behalf of the Creditors, and any net proceeds (after payment of
any expenses incurred for the winding up) will be distributed to
the Creditors on an equitable basis based on the net amount not
settled via the Proposed Debt Restructuring Proposed Winding-Up;
and

(d) After taking into account (b) and (c) above, 20 percent of
the principal amount outstanding Debt Settlement Amount
amounting to approximately RM5,515,212 shall be settled by way
of issuance of RM5,515,212 nominal value of ICULS.
The Proposed Debt Restructuring represents a full and final
settlement of all the debts owing by NB to the Creditors.
However, the total debts owing by NB to the Creditors as at 31
December 2002 will be subject to proof of debts to be undertaken
later.

The new Orion Shares to be issued upon conversion of the ICULS
will upon allotment, rank pari passu in all respect with the
existing Orion Shares in issue save and except that they shall
not be entitled to any dividends, rights, bonuses, issue,
allotment and / or any other allotments or distributions, the
entitlement date (namely the date as at the close of business on
which the shareholders must be registered in order to be
entitled to any dividends, rights, allotments and / or
distributions) of which is prior to the date of the allotment of
the new Orion Shares.

All obligations and liabilities of NB to its creditors are to be
discharged and released in full upon the issuance of the ICULS.

The salient terms of the ICULS are set out in Table 1 below.

4. PROPOSED ACQUISITIONS

4.1 Details of the Proposed Acquisitions

On 6 June 2003, Orion had entered into the Share Sale Agreement
SSA with Kosmo, the vendor of Hexariang, to acquire the entire
issued and paid-up share capital of Hexariang comprising
5,300,000 ordinary shares of RM1.00 each for a purchase
consideration of RM70,000,000 to be satisfied via the issuance
of 70,000,000 new Orion Shares.

(The ordinary shares of RM1.00 each in Hexariang sold by the
vendor of Hexariang pursuant to the SSA shall hereinafter be
referred to as "Sale Shares

Presently, Kosmo holds 4,300,000 Sale Shares, representing 81
percent equity interest in Hexariang. Kosmo will enter into an
agreement with PNS to acquire the latter's existing 19 percent
interest in Hexariang, comprising 1,000,000 Sale Shares prior to
the completion of the Proposed Acquisitions for an indicative
purchase price of RM2,280,000. Thereafter, the entire equity
interest in Hexariang will be disposed to Orion pursuant to the
terms of the SSA.

In addition, pursuant to the terms of the Corporate
Restructuring Agreement, Orion shall enter into an agreement
with PNS to settle the Loan Stocks in Hexariang amounting to
RM3,400,000 for a total consideration of RM3,400,000 to be
satisfied by the issuance of 3,400,000 new Orion Shares.

Further thereto, Kosmo will enter into a put and call option
agreement with PNS to acquire these 3,400,000 Orion Shares at an
indicative purchase price of RM3,400,000.

The respective parties would announce the details of the other
agreements after the execution of these agreements.

Following thereto, Kosmo shall own the entire equity interest of
Hexariang. Pursuant to the Proposed Acquisitions, the number of
Orion Shares to be issued will be as follows:-

Name  No. of Hexariang   percent  Purchase consideration   No.
of Orion
       securities           payable by Orion        Shares to be
issued
                            RM'000                        '000
Kosmo*   5,300,000    100   70,000                      70,000
PNS      3,400,000      -    3,400                       3,400#

* Includes the 1,000,000 Sale Shares to be acquired by Kosmo
from PNS prior to the completion of the Proposed Acquisitions

# These 3,400,000 Orion Shares will be the subject of a put and
call option arrangement to be entered into by Kosmo with PNS.

4.2 Basis of arriving at the purchase price

The purchase consideration for the Proposed Acquisitions was
arrived at on a "willing buyer-willing seller" basis after
taking into consideration of the earnings potential and
prospects of Hexariang.

4.3 Mode of satisfaction of the purchase consideration

The purchase consideration for the Proposed Acquisitions will be
satisfied by the issuance of an aggregate of 73,400,000 new
Orion Shares at par.

4.4 Ranking of the new Orion Shares to be issued

The new Orion Shares to be issued pursuant to the Proposed
Acquisitions will upon allotment, rank pari passu in all
respects with the existing Orion Shares in issue save and except
that they shall not be entitled to any dividends, rights,
bonuses, issue, allotment and / or any other allotments or
distributions, the entitlement date (namely the date as at the
close of business on which the shareholders must be registered
in order to be entitled to any dividends, rights, allotments and
/ or distributions) of which is prior to the date of the
allotment of the Orion Shares.

4.5 Status of the Sale Shares

The Sale Shares shall be acquired free from all liens, pledges,
charges, mortgages and other encumbrances whatsoever and with
all rights, benefits and entitlements now or hereafter attaching
thereto including but without limitation to all bonuses, rights,
dividends and other distributions declared, paid or made in
respect thereof on or before the completion of the Proposed
Acquisitions.

4.6 Liabilities assumed

Save for the operational liabilities of Hexariang based on its
latest audited accounts as at 30 June 2002, Orion will not
assume any further liabilities pursuant to the Proposed
Acquisitions.

4.7 Profit guarantee

Kosmo will provide a profit guarantee of at least 80 percent of
the projected profit after tax amount for the 18 months
financial period ending 31 December 2004.

Pursuant thereto, Kosmo will deposit a relevant quantum of the
new Orion Shares issued to it as consideration for the Proposed
Acquisitions as security for the profit guarantee. The number of
Orion Shares to be deposited with a stakeholder is subject to
the mutual agreement between Orion and Kosmo, and would be
determined at a later date.

4.8 The other salient terms of the SSA

The other salient terms of the SSA are set out below:

(a) Kosmo shall adhere to a moratorium on the disposal of the
Orion Shares issued pursuant to the Proposed Acquisitions as may
be imposed by the Securities Commission SC after the listing of
the new Orion Shares; and

(b) The consent from PNS shall be obtained for the sale of the
1,000,000 ordinary shares in Hexariang currently held by it to
Kosmo and subsequently the settlement of the Loan Stocks by
Orion.

4.9 Information on Hexariang

Hexariang was incorporated in Malaysia under the Companies Act,
1965 on 14 October 1996. It has an authorized share capital of
RM10,000,000 comprising 10,000,000 ordinary shares of RM1.00
each. The present issued and paid-up share capital of Hexariang
is RM5,300,000 comprising 5,300,000 ordinary shares of RM1.00
each.

Hexariang is principally an investment holding Company. Its
subsidiary companies are mostly involved in the manufacturing
and sale of automotive components and accessories.

The subsidiary companies of Hexariang and their respective
principal activities are as follows:-


Company Name Date and place  Effective equity Issued and paid-up
           of incorporation     interest           capital

Nagatrend
Sdn Bhd    3 June 1993/ Malaysia  100 percent     235,000

Nagatrend
Engineering
Sdn Bhd*  24 April 1997/Malaysia  100 percent     500,002

Nagatrend
Sdn Bhd   24 April 1997/Malaysia  100 percent     500,002

Nagatrend Sdn Bhd - Contract holder and trading of car parts and
accessories.

Nagatrend Engineering Sdn Bhd*- Design and manufacture of tools,
dies, jigs, metal stamped parts, engineering services and
general contractor.

Nagatrend Plastic Sdn Bhd- Design and manufacture of plastic
injection moulded parts, moulds and general contractor for
components and accessories.

* A wholly owned subsidiary of Nagatrend Sdn Bhd.

5. PROPOSED LISTING

The Proposed Listing entails the de-listing of NB from the
Official List of the Second Board of KLSE and subsequently the
listing of Orion in place of NB on the Second Board of KLSE.

6. PROPOSED EXEMPTION

Upon completion of Proposed Restructuring Scheme, Kosmo and/or
parties acting in concert with it will hold 73,400,000 Orion
Shares representing approximately 97.35 percent of the enlarged
share capital of Orion Group (after the proposed put and call
option arrangement but before conversion of the ICULS). Pursuant
to Part II of the Code, Kosmo and/or parties acting in concert
with it will be required to extend a mandatory take-over offer
for the remaining Orion Shares not already owned by them.

Pursuant thereto, Kosmo and/or parties acting in concert with it
will seek an exemption under Practice Note 2.9.3 of the Code
from their obligations to undertake a mandatory take-over offer
for the remaining Orion Shares not already owned by them upon
the completion of the Proposed Restructuring Scheme.

7. INFORMATION ON ORION

Orion was incorporated in Malaysia under the Companies Act, 1965
on 20 May 2003. Its authorized paid-up share capital is
RM100,000 comprising 100,000 Orion Shares. The present issued
and paid-up share capital is RM2 comprising 2 Orion Shares. The
principal activity of Orion is that of investment holding.

Orion was incorporated to facilitate the implementation of the
Proposed Restructuring Scheme.

RATIONALE OF THE PROPOSED RESTRUCTURING EXERCISE

NB is an investment holding Company and also provides services
to its subsidiaries. Its subsidiaries are involved in the
provision of ferry services to various popular island resorts
along the coast of Peninsular Malaysia; building, repairing,
cleaning, storing and providing slipway for barges vessels and
ships; transportation and haulage; operator of restaurants; and
vessel chartering services.

The NB Group has been experiencing losses since 1997 and has
negative shareholders' funds of RM45.7 million as at the
financial year ended 31 December 2002. Due to the global
economic slowdown, which badly affected the overseas markets,
the weakening of the regional currencies coupled with the
political instability of certain export markets had reduced the
demand of the NB Group services. The NB Group is highly geared
with total borrowings of RM43.2 million as at 31 December 2002.
The inability of its businesses to generate sufficient revenue
and cash flow to service its debts obligations has resulted in
the classification as affected listed issuer under Practice Note
4/2001 of the KLSE Listing Requirements. The Group also does not
foresee that it will be able to generate sufficient future
profits and cash flow to meet its entire financial obligation in
the ordinary course of business or through the sale of its
assets.

The Proposed Restructuring Scheme is aimed at reviving the
financial strength of the Company through the injection of
profitable and viable assets via the Proposed Acquisitions and
thus provides the Creditors and the existing shareholders of NB
an avenue to recover part of their debts or investments. The
primary objective of the Proposed Debt Restructuring is to
address its financial predicament, to rescue the Company from
being de-listed pursuant to the letter dated 30 May 2003 from
KLSE. It is also intended to rescue the Company from the likely
event of being wound up or placed under a receivership due to
its inability to meet its financial commitments and to revive
the financial strength of the Company via Hexariang.

The Proposed Share Exchange will provide the existing
shareholders of NB an avenue to recover a portion of their
investment, thus enabling the existing shareholders to benefit
from the promising prospects of the Hexariang Group as opposed
to the current position of NB.
9. RISK FACTORS

The Proposed Acquisitions are subject to the following risk
factors, which are informative and may not be exhaustive.

9.1 Political, economic and regulatory

Like all business entities, changes in the political, economic
and regulatory conditions in Malaysia and elsewhere in the world
could materially affect the financial and business prospect of
the Hexariang Group. Amongst the political, economic and
regulatory uncertainties are the changes in the political
leadership, currency exchange rules, and changes in the
accounting policies and taxation.

9.2 Business risk

NB and its subsidiary companies are principally involved in the
provision of ferry services and transportation industries whilst
the Hexariang Group is principally involved in the manufacturing
and trading of automotive parts and accessories. In this
respect, the new core business activities will expose the
enlarged Orion Group to risks inherent in the automotive
industry which includes, inter-alia, rising labor costs,
availability of the raw material, the fluctuation in the foreign
exchange, the implementation of the Asean Free Trade Area AFTA
and the availability of funds.

Although no assurance can be given that any change in these
factors will not have a material adverse impact on the enlarged
Orion Group after the Proposed Restructuring Scheme, the
management of Orion will take the necessary steps to mitigate
the above risks, such as, longer term contracts with its
suppliers, adopting better planning and strategies through
regular management meeting to address to any operational and
non-operational issues encountered from time to time by the
enlarged Orion Group.

Among other measures, Hexariang is certified with the
internationally recognized ISO-9002 and QS-9000 quality
certifications. Efforts are also underway to obtain the ISO
TS/16949, the highest certification available for vendors to the
automotive industry.


By having quality standards, the Hexariang Group has fulfilled
the first requirement of being a first tier vendor to all the
global automotive original equipment manufacturers OEMs.

The advent of AFTA, whilst detrimental to vendors solely
dependent on them, is a positive development for the Hexariang
Group. The opportunity to supply regional OEMs (most of which
are located in Thailand) is greater and since most OEMs are
practicing global sourcing policies, the opportunity arises for
global supply as well.

9.3 Change in controlling shareholders

Following the completion of the Proposed Restructuring Scheme,
Kosmo will emerge as the controlling shareholder in Orion. In
this respect, Kosmo as the new controlling shareholder may
introduce a new set of Directors who shall effectively determine
the future business direction of Orion. Thereafter, Kosmo will
be able to influence the outcome of the matters requiring the
vote of the Orion shareholders, unless it is required to abstain
from voting by law and/or the relevant authorities.

9.4 Competition

The Hexariang Group originated as a supplier of automotive
safety equipment and accessories. It has since diversified to
include a comprehensive design and fabrication of tools and
dies, stamping works, plastic injection, product design and
development as well as the "state-of-the-art" plastic painting
services. The Hexariang Group supplies to, amongst others,
manufacturers of Proton, Perodua, Ford, Kia and Honda vehicles.
The management of Hexariang is of the opinion that although
there is a number of auto-parts manufacturers and assemblers in
Malaysia, Hexariang has been in the industry for the past 10
years and has established itself as one of the major players in
the industry particularly for the manufacturing of automotive
safety equipment and accessories. Furthermore, the Hexariang
Group has also manufactured parts for the electrical and
electronic industries. This has provided the Hexariang Group
with the opportunity to diversify into various industries.

Moreover, to enhance the Hexariang Group's competitiveness, it
is continuously undertaking research and development work to
enhance the quality of its end products and identifying methods
to reduce its cost of production. This may also enhance the
Hexariang Group's profitability in the future.
9.5 Asean Free Trade Agreement AFTA

In accordance with the AFTA agreement, by 1 January 2005, all
import duties imposed on foreign cars will be at 5 percent. Only
cars assembled or produced in Asean countries with more than 40
percent local content are eligible to enjoy the tariff cuts as
agreed under AFTA. In this respect, it is expected that the
competition between the local and foreign car manufacturers,
namely, Proton and Perodua will be more intense. The position of
the car manufacturers after the post-AFTA is still uncertain.

What is certain is the reduction in market share of the local
OEMs against other ASEAN based manufacturers. This is due to the
closer price gap between the locals and foreign brands in
Malaysia.

As provided in the AFTA agreement, only cars with 40 percent
local content will be eligible to enjoy the tariff cuts. Based
on the current established reputation of Hexariang, Hexariang
could tap on the opportunities available then, to also supply
its products to these foreign car manufacturers. As part of this
effort, the Hexariang Group has forged strategic alliances with
similarly certified QS-9000 companies from Germany, Italy,
Netherlands and Korea. The alliances range from technical
cooperation to joint ventures and from technical cooperation to
exclusive regional agency. All selected partners are current
first tier suppliers to major global OEMs.

9.6 Dependence on key personnel
The success of the enlarged Orion Group will depend to a
significant extent upon the abilities and continuous efforts of
the Directors and senior management of Hexariang to operate the
existing businesses. In addition, the enlarged Orion Group's
future success will also depend upon its ability to attract and
retain skilled personnel. In this regard, the management of the
enlarged Orion Group will conduct proper training and guidance
to its staffs to enhance their skill and equip them with the
necessary knowledge and expertise to carry out daily operations
and also ensuring that the staffs are adequately remunerated.

PROSPECTS

Production of transport equipment continued to surge following
strong sales of both passenger and commercial vehicles. Outlook
for the sector remained positive with a double-digit growth of
15.4 percent during the first half of 2002 (January 2001: 18.7
percent) with the production of cars below 1,600 cc increasing
by 31.2 percent. The strong performance of the industry was
backed by an easy credit environment which, offered low interest
with longer repayment period as well as affordable down
payments. The brisk sales of motor vehicles in 2001 continued in
2002. Total vehicle sales in the first six months in 2002
increased strongly by 20.3 percent compared to the same period
in 2001. Most notably, sales of commercial vehicles registered a
robust growth of 22.7 percent reflecting improved business
confidence. Sales of passenger cars continued its double-digit
growth of 19.9 percent. These trends are expected to continue as
the year progresses, fuelled by higher demand arising from
improved consumer confidence as a result of better income and
employment prospects. In addition, intensive promotional
activities by car dealers as well as higher loan availability
for civil servants are expected to further boost sales.

The motor vehicles sales in Malaysia were projected to grow at
3.5 percent for 2003 and the projection of 3.5 percent growth
had factored the impending war against Iraq. The Iraq war has
apparently affected local car buyers' sentiment to some degree
with a number of distributions of both foreign and local cars
reporting slower sales of late. However, according to the
Malaysian Automotive Association, it is still too early to
predict the impact of the war on the car business in Malaysia.

(Source: Extract of the press released made by Malaysia
Automotive Association.)

With the improved economy outlook in 2003, the GDP is expected
to improve at 6 percent - 6.5 percent, arising from a broader
based economy with growth emanating from a more pronounced role
of a rate sector.

The improved GDP is expected to boost the consumer spending, and
hence, improve the performance of the motor vehicle industry and
augur well for the enlarged Orion Group in the future.

CONDITIONALITY

The Proposed Share Exchange, the Proposed Debt Restructuring,
the Proposed Acquisitions and the Proposed Exemption are inter-
conditional among each other. The Proposed Listing is
conditional upon the Proposed Share Exchange, Proposed Debt
Restructuring, the Proposed Acquisitions and the Proposed
Exemption.

APPROVALS REQUIRED

The Proposed Restructuring Scheme is subject to the following
approvals being obtained:

(i) The approval of the SC for the Proposed Restructuring
Scheme;

(ii) The approval of the Foreign Investment Committee and the
Ministry of International Trade and Industry for the Proposed
Acquisitions;

(iii) The Bank Negara Malaysia for the issuance of the ICULS to
the Creditors;

(iv) The approval from the KLSE for the de-listing of NB and the
Proposed Listing, and the listing of and quotation for the
existing and new Orion Shares to be issued pursuant to the
Proposed Restructuring Scheme and the new Orion Shares resulting
from the conversion of the ICULS on the Second Board of KLSE;

(v) The High Court's sanction and approval for the Proposed
Share Exchange and the Proposed Debt Restructuring;

(vi) The approval of the shareholders of NB at a general meeting
and a meeting sanctioned by the High Court of Malaya for the
Proposed Restructuring Scheme and the Proposed Share Exchange
respectively;

(vii) The approval from the Creditors at a meeting sanctioned by
the High Court of Malaya for the Proposed Debt Restructuring;

(viii) The approval of the shareholders of the Orion to increase
the authorized and paid-up share capital of Orion for the
purpose of implementing the Proposed Restructuring Scheme and
the approval for its participation in the Proposed Restructuring
Scheme;

(ix) The consent from PNS to the sale of the 1,000,000 shares in
Hexariang held by it to Kosmo and the settlement of the Loan
Stocks to Orion; and

(x) The approval of any other relevant authorities, if required.


EFFECTS OF THE PROPOSED RESTRUCTURING EXERCISE

13.1 Share Capital

The effects of the Proposed Restructuring Scheme on the share
capital of NB as at 31 December 2002 and Orion as at 20 May 2003
(being the date of incorporation) are set out in Table 3 below.

13.2 Earnings

The Proposed Restructuring Scheme is not expected to materially
affect the earnings of NB for the financial year ending 31
December 2003, as it will be completed only by the end of June
2004.

However, the Proposed Restructuring Scheme is expected to
contribute positively to the earnings of Orion in the 18 months
financial period ending 31 December 2004 due to the earnings
contribution from the Hexariang Group.

13.3 Net tangible assets NTA

The proforma effects of the Proposed Restructuring Scheme on the
latest audited NTA of NB as at 31 December 2002 and Orion as at
the date of incorporation are set out in Table 4 below.

13.4 Substantial shareholders' shareholding structure

The proforma effects of the Proposed Restructuring Scheme on the
substantial shareholders' shareholding of NB as at 31 December
2002 and Orion as at the date of incorporation are set out in
Table 5 below.


APPLICATION TO THE SC

Application to the SC for the approval of the Proposed
Restructuring Scheme shall be made within one and a half (1 �)
months from the date of this announcement.

DEPARTURE FROM THE SC GUIDELINES

PMBB is not aware of any departure from the guidelines
stipulated by the SC.

16. INTERESTS OF DIRECTORS AND SUBSTANTIAL SHAREHOLDERS AND
PERSONS CONNECTED WITH THEM

None have the Directors of NB and/or substantial shareholders of
NB and/or person connected to them have any interest, direct or
indirect, in the Proposed Restructuring Scheme.

STATEMENT OF DIRECTORS

The Board of Directors of NB having taken into consideration all
aspects of the Proposed Restructuring Scheme, is of the opinion
that the Proposed Restructuring Scheme is in the best interest
of NB.

ADVISER

NB has appointed Perdana Merchant Bankers Berhad (PMBB) as the
adviser for the Proposed Restructuring Scheme.

EXPLANATORY STATEMENT AND CIRCULAR TO SHAREHOLDERS AND NOTICE OF
COURT CONVENED MEETING AND EXTRAORDINARY GENERAL MEETING EGM

An explanatory statement and circular to shareholders setting
out the details of the Proposed Restructuring Scheme together
with the notice of the court convened meeting and EGM will be
dispatched to the shareholders of NB in due course.
20. DOCUMENTS FOR INSPECTION

The SSA and the Corporate Restructuring Agreement are available
for inspection at the registered office of NB at 8th Floor,
Plaza Pekeliling, Jalan Kampar, Off Jalan Tun Razak, 54000 Kuala
Lumpur during the normal office hours from Monday to Friday
(except public holidays) for 14 days from the date hereof.


NCK CORPORATION: Files Suit Against Purchasers
----------------------------------------------
NCK Corporation Berhad (NCK) (Special Administrators Appointed)
announced the following:

The subsidiaries of NCK namely, NCKH and FCT had entered into a
Conditional Sale of Shares Agreements with Messrs Yap Choo Tong,
Lim Beng Hean, Khaw Chin Wah and Chaw Chee Meng (collectively
known as "the Purchasers on 10 January 2002 for the disposal of
NCKH's and FCT's entire share investment in UCP Resources Berhad
UCP comprising 6,608,846 ordinary shares of RM1.00 each and
2,964,540 ordinary shares of RM1.00 each respectively in UCP.
The proposed disposal was submitted to the relevant authorities
on 24 January 2002 and SC approval was obtained on 18 June 2002.
The condition precedents thereto have been complied with.

However, NCKH and FCT have yet to receive the Balance Purchase
Price of RM4,163,573 and RM1,867,660 respectively from the
Purchasers. As such, NCK's solicitors had filed the Writ of
Summons for an Order of Specific Performance against the
Purchasers and it was served to the Purchasers on 9 June 2003.

An action was commenced by NCKH and FCT, in the amount and
particulars of claim of RM4,163,573 and RM1,867,660 respectively
together with interest at the rate of 8 percent per annum from
16 September 2002 on the Balance of Purchase Price till date of
full satisfaction.


SASHIP HOLDINGS: Clarifies FY02 Financial Results
-------------------------------------------------
The Board of Directors of Saship Holdings Berhad (Special
Administrators Appointed) (SHB) informed the Exchange that there
is a material difference between the audited financial
statements of the Company and the Group and the un-audited
results that was announced on 27 February 2003.

The material difference was due to the reclassification of
property, plant and equipment of RM117,175,000 in current asset
to conform with the presentation of the financial statements on
a realization basis (an increase of 29.2 percent of current
assets [RM518,012,000/RM400,952,000]).

No formal valuations by independent professional valuers were
carried out as the Directors deemed the prevailing cost less
accumulated depreciation and impairment losses to approximate
the property, plant and equipment's fair value. Depreciation
charges for the year have been recognized in the income
statement as they arose from the normal operations of the Group
and the Company during the financial year ended 31 December
2002. The change in basis did not have a financial impact on the
financial statements as the Directors deemed the carrying value
of the property, plant and equipment to approximate their
realizable value.

In the previous financial year, property, plant and equipment
were stated at cost less accumulated depreciation and impairment
losses. Property, plant and equipment retired from active use
and held for disposals are stated at the lower of net book value
and net realizable value.

Revaluation of certain properties in 1993 and 1997 was carried
out primarily for certain one off events undertaken by the Group
and the Company and was not intended to effect a change in the
accounting policy to one of revaluation of properties and
accumulated impairment losses.

The net loss for the year ended 31 December 2002 was RM154.51
million as compared with the un-audited net loss of RM156.26,
which is a difference of only 1.1 percent. For the audited
financial statements for the year ended 31 December 2002, the
Auditors have qualified the report as follows:

"1) On 28 April 2003, Pengurusan Danaharta Nasional Berhad
Danaharta appointed Special Administrators to the Company and a
wholly owned subsidiary. The Special Administrators are in the
process of preparing a workout proposal pursuant to the
Danaharta Act. This could involve changes to the amounts and
classification of certain balance sheet items. The final outcome
is uncertain at the date of this report.

2) The financial statements are prepared on the realization
basis. However, the Group and the Company did not carry out
formal valuations of their assets and liabilities, as the
Directors deemed the realizable values of the assets and
liabilities to approximate their respective book values.
Provision for costs to realize the assets and to discharge the
liabilities has also not been made in the financial statements.
Should formal valuations be performed by independent
professional valuers on the assets and liabilities and provision
for such costs be made, adjustments may have to be made in the
financial statements to reduce/increase the value of the assets
to their recoverable amounts and to provide for any further
liabilities which may arise.

3) As explained in Note 16 to the financial statements, the
Company and its subsidiaries are engaged in various litigations,
which may have a material effect on the financial position of
the Group and of the Company. Full provision has not been made
in the financial statements as the Directors contend that the
outcomes of these litigations, which have been included in the
Scheme of Arrangement, are highly uncertain. We are unable to
assess the completeness and adequacy of the Group and the
Company's liabilities arising from these litigations.

In view of the significant effects of the above matters, we are
unable to form an opinion as to whether:

a) The financial statements are properly drawn up in accordance
with the provision of the Companies Act, 1965 and applicable
approved accounting standards in Malaysia so as to give a true
and fair view of:

i) The state of affairs of the Group and of the Company at 31
December 2002 and the results of their operations and cash flows
for the year ended on that date; and

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

b) The accounting records required by the Companies Act, 1965 to
be kept by the Company and the subsidiaries have been properly
kept in accordance with the provisions of the said Act.

However, in our opinion, the registers required by the Companies
Act, 1965 to be kept by the Company and its subsidiaries have
been properly kept in accordance with the provisions of the said
Act."


UNITED CHEMICAL: Court Grants Extension of Restraining Order
------------------------------------------------------------
Alliance Merchant Bank Berhad, on behalf of the Board of
Directors of United Chemical Industries Berhad (UCI), announced
that the High Court of Malaya in Ipoh had on 9 June 2003 granted
UCI an extension to the Restraining Order (Extended RO) pursuant
to Section 176 (10A) of the Companies Act, 1965.

The Extended RO is effective for a period of nine (9) months
commencing from 9 June 2003 and expiring on 9 March 2004, and is
not expected to have material financial and operational impact
on UCI in view that:

(i) The Extended RO is to facilitate the Company to develop and
effect the implementation for its proposed scheme of arrangement
and compromise with its shareholders and creditors; and

(ii) The manufacturing operations of UCI had been ceased.

This announcement is dated 10 June 2003.


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


BAYAN TELECOMMUNICATIONS: Plans to Restructure US475M Debt
----------------------------------------------------------
Bayan Telecommunications (Bayantel) plans to restructure its
US$475 million debt into (1) US$275 million of amortizing bonds
maturing in nine years with principal repayments and interest
step-up and (2) US$200 million of 0 percent convertible bonds,
according to DebtTraders. The amortizing bonds will be for
creditor banks while the 0 percent convertible bonds will be for
bondholders.

The Company said secured creditors have agreed with the plan in
principal. It wants to resolve certain issues with bondholders
as soon as possible. The Company expects that the 1.5 billion
pesos (US$29 million) capital expenditures can boost its cash
flow to a level sufficient for servicing the US$275 million
amortizing bonds in nine years, which is equivalent to an
average of approximately US$31 million per year. DebtTraders
believe the incremental cash flow of $31 million per years is
not efficient, compared to the expected expenditures of US$29
million. Currently, the Company was barely able to cover its
cash operating expenses in last two years.


CE CASECNAN: NIA Fails to Pay Water Deliveries Due May 28
---------------------------------------------------------
CE Casecnan's power purchaser, National Irrigation
Administration (NIA), did not pay the monthly power and water
deliveries due on May 28, DebtTraders reports. The Company does
not know why NIA did not pay, which is different from previous
payment delays. According to the Company, NIA has previously
delayed the payments before for administrative reasons. The
Company is contacting the Philippine government hoping to
resolve the problem. NIA has been paying the power and water
deliveries with the exception of on tax reimbursement on the
water deliveries.

CE Casecnan has filed arbitration against NIA. Despite of the
temporary non-payment by NIA, DebtTraders believe the disputes
will eventually be resolved in a reasonable manner. The
obligations of NIA under the agreement with CE Casecnan carry
the full faith and credit of the Republic of the Philippines.
Such obligations of NIA are affirmed and guaranteed by the
Republic.


CEBU PRIVATE: ERC Orders Energy Supplier to Keep Power Steady
-------------------------------------------------------------
The Energy Regulatory Commission (ERC) has ordered the Cebu
Private Power Corporation (CPPC) and the Visayan Electric Co.
(Veco) not to disrupt power supply in Cebu City while the ERC
hears their petition, Asia Pulse reports. After over two hours
of talks with CPPC, Veco and the Department of Energy (DOE) on
June 6, the ERC en banc decided to take jurisdiction over CPPC's
planned suspension of operation. After they adjourned at 12:30
p.m., the DOE officials met with Veco and CPPC officials to sign
a memorandum of agreement (MOA).

Veco maintained its position to stick with the terms in their
existing contract with CPPC, which is pegged at 2 percent lower
than the National Power Corp.'s (Napocor) price. On the other
hand, CPPC is asking for a formula pricing that will
automatically allow them to adjust their selling price to Veco
based on the prevailing price of fuel and the peso against the
dollar.


INTERNATIONAL CONTAINER: Aims to Cut Retained Earnings Deficit
--------------------------------------------------------------
International Container Terminal Services, Inc. (ICT) will apply
its additional paid-in capital to reduce its retained earnings
deficit, which stood at 145.3 million pesos as of end 2002, BPI
Securities reports. At the end of 2001, International Container
Terminal Service had negative working capital, as current
liabilities were 7.65 billion Philippine Pesos while total
current assets were only 5.88 billion Philippine Pesos.


LEAD LENDING: SEC Issues Cease Desist Order
-------------------------------------------
The Securities and Exchange Commission (SEC) has issued a cease
and desist order (CDO) to Lead Lending Corporation for
unauthorized offering, solicitation and acceptance of deposits
or placement of investments from the public, the Manila Times
reports. The Company sold securities in the form of investment
contracts to more than 20 investors without having filed any
registration statement.

The investigation further revealed that for a minimum investment
of 20,000 pesos under a minimum period of three months,
investors are guaranteed a return of four percent interest a
month. The contract is renewable after the expiration of the
term of the original contract.

"Lead Lending Corp. has solicited more than 19 investment
contracts during a 12-month period. Taken in the light of the
corporation's primary purpose, it is undeniable that the
corporation has violated the Corporation Code for having engaged
in acts beyond the scope of its authority," added the SEC's
Compliance and Enforcement Department (CED).


MANILA ELECTRIC: Estimates P3.5B/Yr Refund Payment in Nine Years
----------------------------------------------------------------
Manila Electric Co. (Meralco) estimates that it needs to repay
an average of 3.5 billion pesos (US$67 million) per year to
customers for next nine years, DebtTraders reports. About one-
fifth of the amount will be in cash and three-fifth will be for
credit. The remaining one-fifth will be determined later. The
company also estimates it needs to reimburse National Power
Corporation 20 billion pesos (US$381 million). The company and
National Power Corporation are working on an agreement to pass
on the penalty to final consumers in five-year time. Meralco has
no bond or bullet debt.

It has approximately 5.5 billion pesos (US$105 million) of
short-term notes due in July, which the company is working on
extending the maturity at a lower rate. Other than the short-
term notes, the company plans to extend another one or two
amortizing debt. As of December 31, 2002, Meralco had total debt
of 33.2 billion pesos (US$632 million), versus EBITDA of 8.6
billion (US$3.9 times). If DebtTraders assume Meralco can pass
on the penalty to final customers, total debt-to-EBITDA will be
7.5 times after taking into account the refund to customers.
DebtTraders believe that Meralco's better-than-expected debt
profile will benefit Quezon Power.


MANILA ELECTRIC: ADB Mulls New Waiver on $100-M Loan
----------------------------------------------------
The Asian Development Bank (ADB) revealed Tuesday that it might
grant the Manila Electric Co. (Meralco) another waiver that will
prevent the Company from being declared in default on its $100-
million loan from the multilateral creditor, according to ABS-
CBN News on Wednesday. The ADB is now in the process of
evaluating Meralco 's request.


MANILA ELECTRIC: 4,000 Customers Get Cash Refund
------------------------------------------------
The Manila Electric Co. (Meralco) announced that more than 4,000
customers have been able to get their refund in cash while close
to 2,000 customers opted to have their refund credited to their
future bills, ABS-CBN reports. There are about 1.3 million
customers of the utility firm who fall under phase 1 of the
refund scheme that started Thursday last week. Under phase 1,
Meralco customers with monthly consumption of less than 100-
kilowatt-hour (kWh) will get one-time cash refund.


NATIONAL POWER: ADB Says Show Concrete Progress First
-----------------------------------------------------
The Asian Development Bank (ADB) needs to see concrete progress
in the privatization of the National Power Corp. (Napocor)
before giving the go-signal for a $250-million partial guarantee
loan for the power firm, Philippine Star reports, citing ADB
country director for the Philippines Thomas Crouch.

Crouch said ADB also wanted to see the transfer of the
transmission function of Napocor to the new entity created under
the Electric Power Industry Reform Act of 2001 (EPIRA), the
National Transmission Corp. (Transco). The $250 million ADB-
backed bond float will form part of the $1.2 billion financing
requirement of Napocor for 2003 particularly as payment of the
Company's maturing debts and operating expenses.


PHILIPPINE LONG: Aims to Cut Debt by US$200M This Year
------------------------------------------------------
Philippine Long Distance Telephone Co. (PLDT) is expected to
reduce consolidated debt by about $200 million this year,
Reuters said Tuesday, citing Chief Executive Officer Manuel
Pangilinan. He did not elaborate on how PLDT would reduce the
debt. The telecom firm was able to reduce US$127 million of debt
using funds generated internally in 2002. The group is estimated
to have total debts of about US$3 billion.


PHILIPPINE LONG: Sees Profit Up 38% This Year
---------------------------------------------
Philippine Long Distance Telephone Co. (PLDT) said earnings
could rise 38 percent this year from a year ago, driven by its
unit Smart Communications and continued cost cutting scheme,
according to Reuters. Analysts have projected earnings of 8.5
billion pesos this year. The debt reduction, cost cutting and
stellar revenue and earnings growth at Smart have helped PLDT's
stock price recover from 10-year lows set last October. In the
year to June 9 2003, the stock has risen 71 percent,
outperforming the main index by 51 percent.


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


CAPITALAND LIMITED: Striking-off Dormant Subsidiaries
-----------------------------------------------------
The Board of Directors of CapitaLand Limited announced that the
following dormant indirect wholly-owned subsidiaries of
CapitaLand have, upon their application and as subsequently
notified in the Government Gazette notification dated 23 May
2003, been struck off the Register of Companies pursuant to
Section 344 (4) of the Companies Act, Cap. 50, with effect from
9 April 2003:

Azinger Investments Pte Ltd
PVortal 2 Pte Ltd
PVortal 4 Pte Ltd
PVortal 5 Pte Ltd

The above striking-off of CapitaLand's subsidiaries is not
expected to have any material impact on the net tangible assets
or earnings per share of the CapitaLand Group for the current
financial year ending 31 December 2003.


L & M GROUP: Posts Notice of Shareholder's Interest
---------------------------------------------------
L&M Group Investments Ltd. posted a notice of changes in
shareholder Kenetic Trading & Construction Pte Ltd.'s interests:

Date of notice to Company: 06 Jun 2003
Date of change of interest: 05 Jun 2003
Name of registered holder: The Central Depository (Pte) Ltd
Circumstance(s) giving rise to the interest: Sales in open
market at own discretion

Information relating to shares held in the name of the
registered holder:
No. of shares which are the subject of the transaction:
6,823,000
% of issued share capital: 0.42
Amount of consideration (excluding brokerage and stamp duties)
per share paid or received: 0.02
No. of shares held before the transaction: 103,476,000
% of issued share capital: 6.32
No. of shares held after the transaction: 96,653,000
% of issued share capital: 5.9

Holdings of Substantial Shareholder including direct and deemed
interest
                                           Deemed Direct
No. of shares held before the transaction: 0      103,476,000
% of issued share capital:                 0      6.32
No. of shares held after the transaction:  0      96,653,000
% of issued share capital:                 0      5.9
Total shares:                              0      96,653,000



NEPTUNE ORIENT: Appoints Ang Kong Hua as New Director
-----------------------------------------------------
Neptune Orient Lines Limited (NOL) announced the appointment Ang
Kong Hua as new Director of the Company effective June 2, 2003.

Country of principal residence: Singapore

Whether appointment is executive, and if so, the area of
responsibility: No

Working experience and occupation(s) during the past 10 years:
1966-67 Projects Officer
Economic Development Board

1967-68 Assistant Commissioner
Bases Economic Conversion
Dept

1968-74 Senior Manager
Corporate Finance Division
DBS Bank

1974-75 Director
Asiatic Navigation Ltd

1975-todate President
NatSteel Ltd

Other directorships

Past:
Name of Company Date of Appointment Date of Resignation

1. Tat Lee Bank Limited 16 Jun 1990 29 Jul 1998
2. Fantasy Island Pte Ltd 01 May 1994 26 Aug 1998
3. Wujin NatSteel Co. Ltd 21 Jul 1995 28 Jan 1999
4. 7 Bridge Street Pty Limited 16 Dec 1997 16 Jun 1999
5. PT Citraland Adigraha 24 Mar 1997 16 Jun 1999
6. Unimar Marketing Pte Ltd 05 Feb 1997 16 Jun 1999
7. ECS Computer (Asia) Pte Ltd 16 Mar 1992 16 Jun 1999
8. NatSteel Resorts International Pte Ltd 02 Dec 1989 16 Jun
1999
9. National Oxygen Pte Ltd 09 Oct 1982 16 Jun 1999
10. NatSteel Electronics Ltd 22 Apr 1988 05 Jan 2001
11. Transtech Capital Investments I Ltd
(In members Voluntary Liquidation) 22 Jul 1986 10 May 2001
12. Transtech Capital Investments II Ltd
(In members Voluntary Liquidation) 22 Jul 1986 10 May 2001
13. NatSteel Engineering Pte Ltd 10 Mar 1982 07 Aug 2001
14. Raffles Marina Ltd 09 Feb 1990 07 Aug 2001
17. Laguna National Golf and Country Singapore Labour Foundation
Securities Industry Council  28 Oct 1994 27 Apr 1984 01 Jan 1990
(Appointed Chairman 1998) 07 Aug 2001 30 Nov 2001 31 Dec 2001
18. Transpac Industrial Holdings Limited 07 Feb 1994 11 Jan 2002
19. Transpac Ventures I Ltd 10 Nov 1989 11 Jan 2002
20. Asia Venture Fund Ltd 10 Nov 1989 11 Jan 2002
21. Transpac Capital Pte Ltd 10 Nov 1989 11 Jan 2002
22. Transtech Venture Management Pte Ltd 22 Jul 1986 31 Jan 2002
23 Eastern Wire Pte Ltd 01 Jan 1976 08 Feb 2002
24. NatSteel Technology Investments Pte Ltd 23 Dec 1981 08 Feb
2002
25. Engineering Computer Services (S) Pte Ltd 16 Mar 1992 08 Feb
2002
26. NatSteel Properties Pte Ltd 04 Oct 1996 08 Feb 2002
27. Eastern Sand Pte Ltd  08 Feb 2002
28. P T Taman Nongsa Indah Village  02 Apr 1991 08 Feb 2002
29. Tropical Resorts Limited 28 Apr 1995 08 Feb 2002
30. NatSteel Broadway Ltd 10 Sep 1996 19 Jul 2002
31. NatSteel Brazil  22 July 1997 18 Oct 2002
32. Aco Minas Gerais S.A. - Acominas 29 Nov 1999 18 Oct 2002
33. Singapore Post Pte Ltd  27 July 2001 20 Mar 2003

Present:
COMPANY DATE NATURE OF STATUS OF

NAME OF COMPANY/ENTITY REGN. NO. APPOINTED INTEREST COMPANY

NatSteel Ltd and its subsidiaries

1. Eastern Industries Private Limited 196200169D 18 Dec 1975
Director Pte Ltd Co.
2. NatSteel Chemicals Ltd 196800220K 01 Jan 1976 Director Pte
Ltd Co.
3. NatSteel Ltd 196100107C 01 Jan 1981 Director/President Listed
Co.
4. Eastern Pretech Pte Ltd 198203232D 30 Aug 1982
Chairman/Director Pte Ltd Co. (formerly known as Eastern
Partek Pte Ltd)

Associated Companies of NatSteel Ltd

5. Southern Steel Berhad 364/1963 10 Feb 1982 Director Listed
Co.
6. SteelAsia Manufacturing Corporation AS094-000546 11 Dec 1996
Director Pte Ltd Co.
7. Bangkok Synthetics Co., Ltd 441/2536 25 Feb 1993 Director Pte
Ltd Co.
8. Southern NatSteel (Xiamen) Ltd 01810 28 Oct 1994 Director Pte
Ltd Co.
9. Intraco Limited 196800526Z 22 Apr 1988 Chairman/Director
Listed Co.

Other Companies

10. Lieng Chung Corporation - 10 Sep 1996 Director -
(Kowloon) Ltd
11. Government of Singapore 198102265N 28 Nov 1997 Director Pte
Ltd Co. Investment Corporation Private Limited
12. GIC Special Investments Private 199900988R 25 Mar 1999
Director Pte Ltd Co. Limited
13. K1 Ventures Limited 197000535W 27 Jul 2000 Director Listed
Co. (formerly known as Keppel Marine Industries Limited)
14. Singapore Telecommunications 199201624D 08 May 2001
Chairman/ Listed Co. Limited Director
15. Glory Central Holdings Limited 445772 19 Jun 2001 Director
Pte Ltd Co.
16. Crown Central Assets Limited 493827 03 June 2002 Director
Pte Co.
17. Crown Central Assets Pte. Ltd. 200009753D 09 Sep 2002
Director Pte Ltd Co.


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


THAI PETROCHEMICAL: Speculation Makes Shares Actively Traded
------------------------------------------------------------
Speculation that the court will endorse Wednesday the
appointment of a new rehabilitation plan manager for Thai
Petrochemical Industry Plc triggered active trading on the stock
market, Business Day said yesterday.

TPI shares were one of the most actively traded since Tuesday in
anticipation of the court ruling, according to the paper.
Trade volume reached THB251 million, or about 2.3 percent of the
total market volume on Tuesday.

The Thai central bankruptcy court will make its decision on
whether to approve the rehabilitation management team of TPI as
proposed by the majority of creditors.  Prachai Leophairatana,
founder and current interim manager of the country's largest
debt defaulter, has so far expressed opposition to the
creditors' choice of Thai Planner Company.

"Uncertainty over the TPI case relies on the acceptance (of the
creditors' proposed team) of the debtor," said Pongrat
Rapanatavannanda, a research manager at Kiatnakin Securities,
told Business Day.  "Prices may rise on possible approval of the
new management team. But TPI is a speculative share, you have to
accept that there is a volatility risk."



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

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