/raid1/www/Hosts/bankrupt/TCRAP_Public/030807.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   A S I A   P A C I F I C

            Thursday, August 07, 2003, Vol. 6, No. 155

                         Headlines

A U S T R A L I A

AMP LIMITED: Posts Update on AMP Henderson Changes
BRAMBLES INDUSTRIES: Meineke Sale Completed
DOWNER EDI: Sells Foundry Business to Major Supplier CQMS
LIBERTYONE: ASIC Applies to High Court on Whitlam Decision
PASMINCO LIMITED: Banking Facilities Extended

POWERLAN LIMITED: Foresees Negative Cash Flow Due to Debts
POWERTEL LTD: Sitting Panel Appointed to Consider Application
TOWER LIMITED: Rights Issue Accepted
UECOMM LIMITED: Announces Change of Board Members


C H I N A   &   H O N G  K O N G

CAROFAITH INDUSTRIES: Petition to Wind Up Pending
CHINA RESOURCES: Proposes Restructuring, Shares Subscription
FUJIAN FURI: Xinhua Cuts Rating to CC (pi); Outlook Negative
HANSOM EASTERN: Cuts Operations Loss to HK$43.086
HEILONGJIANG AGRICULTURE: Xinhua Assigns BB (pi) Rating

MARCHI LIMITED: Aug 27 Winding Up Hearing Scheduled
SCENERY PEAK: Faces Winding Up Petition


I N D O N E S I A

DIPASENA CITRA: IBRA Asks Mandiri for US$100M Funding
SERASI AUTORAYA: Pefindo Assigns Rp500B Bond "idBBB+"


J A P A N

JAPAN AIRLINES: Unveils 1Q03 Financial Results
JAPAN AIRLINES: Suspends Sapporo-Honolulu Flights From Oct 1
JAPAN HIGHWAY: Former Employees Demand President Resignation
RESONA HOLDINGS: Chairman Braces For Harsh Reassessment Results
SANKYO SEIKI: JCR Places BB+ Rating on Credit Monitor

SANKYO SEIKI: Enters Alliance With Nidec Corp.
SEIYU LTD.: Sees Y10B Net Loss
SEIYU LIMITED: Places BB+ Rating Under Credit Monitor


K O R E A

HANARO TELECOM: Upgrades A-Bone Connectivity to 155Mbps
HANARO TELECOM: Shareholders Reject LG's Share Sale Plan
HYUNDAI MOTOR: Agrees to Labor's Demand
SK GLOBAL: Schedules & Statement Might Appear on August 20
SK GLOBAL: Debtors Ask to Maintain Cash Management System

SK GLOBAL: Foreign Lenders Agree to Take 43%-48% Payment


M A L A Y S I A

CHASE PERDANA: Changes Registered Address
CONSTRUCTION AND SUPPLIES: To Make De-listing Show Cause Letter
CONSTRUCTION AND SUPPLIES: Search for White Knight Continues
COUNTRY HEIGHTS: Clarifies Divestment Media Report
CSM CORPORATION: Provides Financial Assistance to Units

CSM CORPORATION: Updates Defaulted Loan Repayments Status
HIAP AIK: Unit Faces Court Summons From SCI
KELANAMAS INDUSTRIES: Issues Scheme Status Update
KUMPULAN HARTANAH: Replies KLSE's Winding Up Petition Query
LONG HUAT: Scheme Explanatory Statement Preparation Underway

PILECON ENGINEERING: Seeks Restraining Order Period Extension
RNC CORPORATION: Disposal Proceeds Go to Essential Creditors
SASHIP HOLDINGS: Receives De-listing Show Cause Notice From KLSE
SASHIP HOLDINGS: Required to Submit MA Reports to KLSE
TECHNO ASIA: Proposed Set-Offs and Transfers Agreement Executed

TONGKAH HOLDINGS: Disposes of Quoted Securities
WIDETECH (MALAYSIA): Widens Group Loss to RM1.611M


P H I L I P P I N E S

MANILA ELECTRIC: Appoints Jaime Camacho as Information Officer
MANILA ELECTRIC: Shelves Plan to Sell Real Estate Assets
NATIONAL POWER: Starts Transco Upgrading With Meralco
NATIONAL STEEL: Government Prepares New Bailout Plan
NATIONAL STEEL: Awaits Proposal From Two Foreign Consultants


S I N G A P O R E

CREATIVE TECHNOLOGY: Swings to S$4.6M Net Profit
NEWCALL COMMUNICATIONS: Issues Preferential Dividend Notice
OFFICE SHOPPING: Petition to Wind Up Pending
PCL TECHNOLOGY: Winding Up Hearing Set August 15


T H A I L A N D

GENERAL ENGINEERING: Ups Capital, Issues Shares
NATIONAL FERTILIZER: SET Suspends Securities Trading
QUALITY HOUSES: SET Grants Listed Securities



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


AMP LIMITED: Posts Update on AMP Henderson Changes
--------------------------------------------------
AMP Limited has on Wednesday outlined the impact of potential
changes to its listed property trust (LPT) business, managed by
AMP Henderson Global Investors.

Chief Executive Officer Andrew Mohl said that consolidation was
occurring across the Australian listed property sector and that
AMP's property strategy had to take account of these changes.

"AMP Henderson is managing an exit from the LPT sector at a time
of significant market strength while mindful of the interests of
all stakeholders - the LPT unitholders, AMP shareholders and AMP
Life policyholders," Mr Mohl said.

Three LPTs - AMP Shopping Centre Trust, AMP Diversified Property
Trust and AMP Industrial Trust -were recently subject to
takeover offers, which were recommended by AMP Henderson, the
Responsible Entity.

Changes are now proposed to the remaining LPT, the AMP Office
Trust (AOF).

AMP Henderson, the Responsible Entity for AOF, on Wednesday
proposed a restructure of the Trust's management through the
creation of a new management company, Ronin Property Group
(RPG), which subject to unitholder approval will replace AMP
Henderson as the Responsible Entity for the Trust.

If the proposed restructuring is approved by AOF unitholders,
AMP will receive a one-off payment of A$31 million as a
procurement fee for the retirement of AMP Henderson as
Responsible Entity. If approved, the changes will result in a
reduction in gross assets under management of approximately
A$1.5 billion. The annualized net profit after tax impact on AMP
Henderson will be a reduction of around A$4.2 million.

AMP Henderson and RPG will have an ongoing relationship in areas
such as property management services and new product
development.

Impact of changes on AMP Life

If the AOF proposal is approved by unitholders, AMP Henderson
will have raised a total of A$87.8 million across its four LPTs.
The cumulative profit impact from the exit of the LPT sector on
AMP Henderson will be an annualized reduction of A$16.5 million.
The full financial impact will not take place until 2004.
Mr Mohl said that property remained an important part of AMP
Henderson's asset management capability.

"AMP Henderson will continue to be Austral Asia's largest
manager of unlisted wholesale property assets with a portfolio
in excess of $10 billion, invested in the office, industrial and
retail property sectors," Mr Mohl said.

Impact of changes on AMP Life (policyholders)

AMP Life, which represents the interests of AMP's 1.7 million
policyholders, is the largest unitholder in AOF owning
approximately 21 per cent of the Trust. AMP Life is entitled to
vote on each of the three resolutions being proposed to AOF
unitholders.

AMP Life has advised AMP Henderson that it welcomes the proposal
for internalization. In order to facilitate the proposal, AMP
Life has agreed to waive any pre-emptive rights it may have in
relation to the properties it co-owns with AOF that may arise
from the implementation of this proposal. As part of the
arrangement, AMP Life has achieved greater clarity around co-
ownership agreements and ongoing management of co-owned
properties.

In terms of the three other LPTs, AMP Life sold its 12.2 per
cent stake in the AMP Industrial Trust (AIP) to Macquarie
Goodman for $1.28 per share, payable in cash. This represented a
27 per cent premium to net tangible asset value prior to the
takeover activity.

AMP Life sold its 3.8 percent stake in the AMP Diversified
Property Trust (ADP) to Stockland for $3.07, which was a 25 per
cent premium to net tangible asset value prior to the takeover
activity. AMP Life also sold its 16.75 per cent stake in the AMP
Shopping Centre Trust (ART) to Westfield for $1.80, which was a
26 per cent premium to net tangible asset value prior to the
takeover activity.

In total, the LPT activity has benefited policyholders by
realizing almost $80 million above the stated net tangible asset
value of AMP Life's previous unitholdings prior to the takeover
activity. This is in addition to an increase of some $250
million in the valuation of its direct property holdings since
the takeover activity.

AMP Life Managing Director Craig Dunn said: "AMP Life has
achieved strong returns for its policyholders by realizing units
in buoyant markets".

CONTACT INFORMATION: Karyn Munsie
        Ph: 9257 9870
        0421 050 430


BRAMBLES INDUSTRIES: Meineke Sale Completed
-------------------------------------------
Brambles Industries Limited wishes to advise that the sale of
the Meineke Car Care Centers business 2003, has now been
completed.

On July 1, Brambles reached agreement for the sale of the
Meineke business to an investor group comprised of Carousel
Capital, headquartered in Charlotte, North Carolina, The Halifax
Group, based in Washington DC and Dallas, Texas, and members of
Meineke management.

Cash consideration of US$68.5 million is payable on completion
and is subject to adjustment to reflect the level of working
capital at that time. The net assets to be sold are
approximately US$17 million under UK GAAP and US$9 million under
A GAAP (the difference being due to the treatment of goodwill).


DOWNER EDI: Sells Foundry Business to Major Supplier CQMS
---------------------------------------------------------
Downer EDI Limited announced Wednesday that it has sold its
foundry business in Maryborough, Queensland, to Central
Queensland Mining Supplies Pty Limited (CQMS). Under the terms
of the sale and purchase agreement, Downer EDI will realize book
value on the transaction.

CQMS is a major supplier of cast and fabricated products to the
Australian mining industry with manufacturing facilities in
Mackay and has a foundry interest in South Australia. CQMS will
operate the foundry under the banner of Pac Foundry on the
current Maryborough site. Pac Foundry will continue to be
Australia's leading large casting foundry with an expanded
capability to manufacture medium sized steel castings for the
mining and minerals industry, along with industrial and general
engineering markets.

Managing Director of Downer EDI, Mr Stephen Gillies, said the
sale of the foundry now completed Downer's divestment of the
non-rail related businesses in Maryborough with the facility, an
integral part of EDI Rail's operations.

On July 14, the Troubled Company Reporter - Asia Pacific
reported that Fitch Ratings, the international rating agency,
has assigned a Senior Unsecured rating of 'BBB-' to Downer EDI
Limited (Downer). The rating Outlook is Stable.


LIBERTYONE: ASIC Applies to High Court on Whitlam Decision
----------------------------------------------------------
Mr David Knott, Chairman of the Australian Securities and
Investments Commission (ASIC), advised Tuesday that ASIC has
filed an application with the High Court for special leave to
appeal the recent decision by the New South Wales Court of
Appeal in ASIC vs Nick Whitlam, Chairman of LibertyOne, an
Australian Internet technology company under liquidation.

The Court of Appeal handed down the decision on Thursday 10 July
2003.

"The case raises some important issues of law, including the
capacity in which a company chairman acts as proxy for members,
that we believe warrant consideration by the High Court", Mr
Knott said.

ASIC will make no further comment on this matter pending the
High Court's hearing of the application.


PASMINCO LIMITED: Banking Facilities Extended
---------------------------------------------
Pasminco Limited announced Tuesday that its financiers had
renewed the Summit Facility, its current banking facilities. The
facility amount, terms and conditions remain essentially
unchanged.

Commenting on the renewal, Chief Executive Officer Greig Gailey
said, "This renewal is a demonstration of the financiers`
support for the company. We are continuing to develop a number
of alternatives to restructure the company, although the equity
and float plan remains the preferred option. The recent rise in
the zinc price gives us some cause for optimism that market
balance is returning."

"As a result of the strengthening Australian dollar, we have
reviewed all aspects of our business and implemented a number of
initiatives that complement our improved operating performance.
The financiers support these initiatives and the progress we
have made in restructuring the company and have therefore
endorsed this further renewal," he said.

Mr Gailey said, "I remain confident that we will emerge from
administration a stronger and more vibrant organization with a
positive future that will see Pasminco once again a major player
in the global zinc industry."

CONTACT INFORMATION: Trevor Shard
        General Manager Investor and Community Relations
        Tel: ++ 61 (3) 9288 9186
        Mobile: 0419 584 515


POWERLAN LIMITED: Foresees Negative Cash Flow Due to Debts
----------------------------------------------------------
Software developer and vendor Powerlan Limited released its
monthly cash-flow statement for the month of June. In summary,
receipts were $3.9m and net operating cash flow was $0. 3m for
the month.

Despite the positive cash flow in June, Powerlan still predicts
it will face negative cash flows from time-to-time as the
Company continues to address legacy issues relating to its
revenue model and debt payments.

Powerlan has appointed Perry Giannopoulos to the role of Chief
Financial Officer (CFO). Mr Giannopoulos will continue to be
Powerlan's Company Secretary, a position he has held for the
last four years. Prior to joining Powerlan, Mr Giannopoulos, a
Chartered Accountant with a Masters in Commerce degree, was an
external accountant responsible for the Powerlan account. Mr
Giannopoulos' promotion follows the resignation of former CFO
Lyn Mackenzie.

To view copy of the Financial Report click
http://bankrupt.com/misc/TCRAP_PWR0807.pdf.


POWERTEL LTD: Sitting Panel Appointed to Consider Application
-------------------------------------------------------------
The Takeovers Panel advises that the President of the Panel has
now appointed a Sitting Panel to consider the application
received from the Roslyndale Syndicate (Roslyndale) seeking a
declaration of unacceptable circumstances in relation to the
affairs of PowerTel Limited (PowerTel). The application relates
to the takeover bid announced by TVG Consolidation Holdings SPRL
(TVG) for all of PowerTel's shares.

The sitting Panel comprises Teresa Handicott, Carol Buys and
Chris Photakis.

The Panel also notes a correction to its media release dated3 0
July 2003 in relation to Roslyndale's current application.
In that media release, it was stated that Roslyndale asserted
that there is an agreement, arrangement or understanding between
TVG, WilTel (PowerTel's major shareholder) and/or PowerTel in
breach of section 606 of the Act. In fact, Roslyndale did not
make such an assertion. Roslyndale did ask the Panel to make an
inquiry to determine whether there was any agreement,
arrangement or understanding between them in relation to the bid
or the variation of the bid.

The Panel has not yet sought the views of the parties affected
by the application and so has not yet formed any views in
relation to it.

CONTACT INFORMATION: George Durbridge
        Director, Takeovers Panel
        Level 47 Nauru House,
        80 Collins Street, Melbourne VIC 3000
        Ph: +61 3 9655 3553
        george.durbridge@takeovers.gov.au


TOWER LIMITED: Rights Issue Accepted
------------------------------------
TOWER Limited confirms that of the 234,183,612 shares to be
issued under its pro rata renounceable rights issue, 189,896,227
have been validly accepted by applicants prior to closing.

The balance of 44,287,385 shares are to be taken up by Guinness
Peat Group Plc and various sub-underwriters pursuant to the
Underwriting Agreement between TOWER Limited and Guinness Peat
Group Plc dated 8 July 2003.


UECOMM LIMITED: Announces Change of Board Members
-------------------------------------------------
Uecomm Limited announced Tuesday changes to the composition of
its Board of Directors.

Messrs John R. Cahill and Timothy C. Healey have been appointed
as directors and Messrs Douglas P. Evanson, Robert W. Holzwarth
and Keith G. Stamm have resigned following the exit of United
Energy as Uecomm's major shareholder on 5 August 2003.

John Cahill is the Chief Financial Officer of Alinta Limited,
which has become a 66% shareholder in Uecomm following its
acquisition of the United Energy business.  John has over 20
years experience in the energy industry in finance and
accounting.

Tim Healey has a background in finance, economic policy and
development banking.  Tim has been a director of a number of
companies and government corporations.  Tim is a director of
Alinta Limited and was previously a director of United Energy.

Uecomm Chairman, Mr Peter Shore commented, "The Board recognizes
the contribution of Doug, Bob and Keith and welcomes John and
Tim as the incoming directors.

"Their extensive financial and public company experience will
complement the industry and financial expertise of the existing
Board.  We look forward to working together to continue to build
on Uecomm's success."

Wrights Investors' Service reports that at the end of 2002,
Uecomm Limited had negative working capital, as current
liabilities were A$17.50 million while total current assets were
only A$13.88 million.


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C H I N A   &   H O N G  K O N G
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CAROFAITH INDUSTRIES: Petition to Wind Up Pending
-------------------------------------------------
The petition to wind up Carofaith Industries Limited is
scheduled to be heard before the High Court of Hong Kong on
August 27, 2003 by 9:30 in the morning.

The petition was filed with the court on July 14, 2003 by Chan
Chiu Fong of Room 924, Lai Huen House, Lai Kok Estate, Cheung
Sha Wan, Kowloon, Hong Kong.


CHINA RESOURCES: Proposes Restructuring, Shares Subscription
------------------------------------------------------------
China Resources Logic Limited, Wuxi China Resources
Microelectronics Co. Ltd., an indirectly wholly owned subsidiary
of the Company, owns 49 percent equity interests in Wuxi CSMC-HJ
Semiconductor Co. Ltd. whilst CSMC Group, through Central
Semiconductor Manufacturing Co., Ltd., an indirectly wholly
owned subsidiary of Central Semiconductor Manufacturing
Corporation, owns the remaining 51% equity interests in CSMC-HJ.

Through the proposed Restructuring, which is to be achieved by a
series of restructuring steps by both the Group and CSMC Group,
the CSMC-Tech Group will be formed which will hold 100% equity
interests in CSMC-HJ and CSMC Technologies (Wuxi) Co., Ltd. As a
result of Restructuring, the Company, through Faithway Resources
Limited, an indirectly wholly owned subsidiary of the Company
will own 50% of the issued share capital of CSMC-Tech whilst
CSMC Group, through Stockside, a wholly owned subsidiary of
CSMC, will own the remaining 50% of the issued share capital of
CSMC-Tech.

Parallel to the Restructuring, the Company and CSMC Group have
invited additional parties to invest in CSMC-Tech at a pre-money
valuation of US$95 million. The Company has, through its
indirectly wholly owned subsidiary, Faithway entered into an
Investment Agreement on 5th August, 2003. The Investment
Agreement provides that Faithway, together with Investors (other
than Faithway), will subscribe Series A Shares in CSMC-Tech for
up to a maximum value of US$83 million. The subscription are to
be carried out in three tranches with each tranche subject to
certain conditions precedent including the completion of
Restructuring which is a condition precedent for the First
Tranche Completion.

To see complete copy of the disclosure, go to
http://bankrupt.com/misc/TCRAP_China0807.pdf.


FUJIAN FURI: Xinhua Cuts Rating to CC (pi); Outlook Negative
------------------------------------------------------------
Xinhua Far East China Credit Ratings (Xinhua Far East), the
pioneering undertaking to rank credit risk among Chinese
corporations using international standards, downgraded on
Tuesday the B+ (pi) long term credit rating of Fujian Furi
Electronics Co Ltd to CC (pi). The rating outlook remains
negative.

The rating action is prompted by Furi's continued unprofitable
business operations and deteriorating financial profile. Furi
has changed businesses several times, resulting in an unclear
core business and uncompetitive products, declining
profitability and operating losses, inability to sustain
development. The Company's net operating cash flow has decreased
sharply, its debts are composed of all short-term borrowings and
are at a high level, causing heavy pressure on working capital
and weakening debt repayment ability. Moreover, the Company's
auditor issued an unqualified opinion with explanatory notes in
2002.

Xinhua Far East expects it will remain difficult for Furi to
improve its unprofitable business and to alleviate large funding
pressure in short term, making the rating outlook for the
Company negative.

Furi is principally engaged in the business of computers,
computer peripherals, and micro-electronics plus import & export
trade. In 2002 the Company's revenue from computers,
peripherals, and micro-electronics account for only 33.7% of
total revenue while import & export revenue rose to 64.2%.

Furi is a constituent of the Xinhua/FTSE China A Small Cap
Index. As of August 4, 2003, its total market cap reached RMB
1.75 billion yuan (US$216 million) while the investible market
cap accounted for RMB 524.59 million yuan (US$64.77 million).


HANSOM EASTERN: Cuts Operations Loss to HK$43.086
-------------------------------------------------
Hansom Eastern (Holdings) Limited disclosed its financial
statement summary for the year ended March 31, 2003:

Year end date: 31/3/2003
Currency: HKD
Auditors' Report: Unqualified
                                                 (Audited)
                             (Audited)           Last
                              Current            Corresponding
                              Period             Period
                              from 1/4/2002      from 1/4/2001
                              to 31/3/2003       to 31/3/2002
                              Note  ('000)       ('000)
Turnover                           : 51,493             240,683
Profit/(Loss) from Operations      : (43,086)           (72,186)
Finance cost                       : (598)              (2,122)
Share of Profit/(Loss) of
  Associates                       : N/A                N/A
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A
Profit/(Loss) after Tax & MI       : (43,684)           (47,675)
% Change over Last Period          : N/A       %
EPS/(LPS)-Basic (in dollars)       : (0.014)            (0.022)
         -Diluted (in dollars)     : N/A                N/A
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A
Profit/(Loss) after ETD Items      : (43,684)           (47,675)
Final Dividend                     : NIL                NIL
  per Share
(Specify if with other             : N/A                N/A
  options)
B/C Dates for
  Final Dividend                   : N/A
Payable Date                       : N/A
B/C Dates for Annual
  General Meeting                  : 3/9/2003           to
5/9/2003  bdi.
Other Distribution for             : N/A
  Current Period
B/C Dates for Other
  Distribution                     : N/A

Remarks:

Loss per share

The calculation of the loss per share for the year is based on
the net loss for the year of HK$43,684,000 (2002: HK$47,675,000)
and on 3,116,124,045 (2002: weighted average of 2,197,101,754)
ordinary shares in issue.

No diluted loss per share was presented for the year ended 31st
March, 2002 as the exercise prices of the Company's outstanding
share options were higher than the average market price of
shares of the Company for that year.


HEILONGJIANG AGRICULTURE: Xinhua Assigns BB (pi) Rating
-------------------------------------------------------
Xinhua Far East China Credit Ratings (Xinhua Far East), the
pioneering undertaking to rank credit risk among Chinese
corporations using international standards, on Tuesday assigned
the BB (pi) long term credit rating to Heilongjiang Agriculture
Co Ltd. The rating outlook is stable.

Xinhua Far East recognizes the Company's revenue from contract
production fees is secure and relatively stable, however in the
past 2 years the decline in grain output and grain prices has
depressed the income of family farms, increasing uncertainties
over the Company's timely collection of accounts receivable.
While China's agricultural policies and reforms have made the
Company more market-driven, this has also challenged its
operation and management. Also, the Company's investment
projects financed by its raised funds entail certain risks,
incurring much uncertainty over its profit growth. Moreover,
Xinhua Far East is concerned over deficiencies in the Company's
corporate governance and information disclosure.

In terms of financials, the Company's current revenue
recognition method is relatively optimistic, such that revenue
and profit from contract production fees appear stable in its
financial reports. However, the Company's cashflow is affected
by the reduction in grain output and its substantial accounts
receivable from related parties. Short-term debt accounts for a
large proportion of the Company's gross debt. Although its
present cash reserve partially alleviates its debt repayment
pressure, the Company's commitment to huge capital expenditure
for the short to medium term incurs significant liquidity risks.

HACL is mainly engaged in the production, refining, processing
and sale of grain such as rice, wheat, soy and corn, as well as
the production and sale of carbamide. In 2002, contract
production fees account for over 50% of HACL's turnover and over
97% of its gross profit


MARCHI LIMITED: Aug 27 Winding Up Hearing Scheduled
---------------------------------------------------
The High Court of Hong Kong will hear on August 27, 2003 at
10:00 in the morning the petition seeking the winding up of
Marchi Limited

Kwok Po Ching of Room 2015, 20/F., Tak Hong House, Hau Tak
Estate, Tseung Kwan O, New Territories, Hong Kong filed the
petition on July 16, 2003. Tam Lee Po Lin, Nina represents the
petitioner.

Creditors and other interested parties are encouraged to attend
the hearing.  They only need to notify in writing Tam Lee Po
Lin, Nina, which holds office on the 27th Floor, Queensway
Government Offices, 66 Queensway, Hong Kong.


SCENERY PEAK: Faces Winding Up Petition
---------------------------------------
The petition to wind up Scenery Peak Company Limited is set for
hearing before the High Court of Hong Kong on August 13, 2003 at
9:30 in the morning.

The petition was filed with the court on June 18, 2003 by Li Siu
Ha of 5/F., No. 75 Chung On Street, Tsuen Wan, New Territories,
Hong Kong.


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DIPASENA CITRA: IBRA Asks Mandiri for US$100M Funding
-----------------------------------------------------
The Indonesia Bank Restructuring Agency (IBRA) asks PT Bank
Mandiri to grant US$100 million funds to finance the
revitalization of the shrimp embankment of PT Dipasena Citra
Darmaja, an asset that Sjamsul Nursalim submitted to pay his
debts of Rp28 trillion to the state, Bisnis Indonesia reports.

Mulyati Silankay, President Director of PT Dipasena Citra
Darmaja, said he had submitted the funding proposal asking for
US$100 million to Bank Mandiri. "However, we estimate it is
banking consortium that will fulfill our huge need for funds.
However, the management currently is prioritizing to ask loans
from local banks first. In addition, all things have been in
coordination with the Indonesia Bank Restructuring Agency."

The funding, he added, would be allocated to develop the plasma
farmers in Dipasena and to build the cold storage in PT Wachyuni
Mandira, the subsidiary of Dipasena. The money would be
allocated to build ship jetty as the production export facility
of the company.

When asked for confirmation about the financing to Dipasena,
Chief director of Bank Mandiri E.C.W. Neloe replied the bank was
only interested in financing the plasm farmers.

"We once talked about Dipasena with the IBRA, but it was in the
context of financing the plasm farmers, not the core company.
Besides, the amount is not that big (US$100 million)," he said
but didn't explain about the method to allocate loans to the
farmers.

Since Dipasena was founded, the farmers got IDR3.8 trillion in
loans that Dipasena guaranteed and BI supported. In 2000,
Financial Sector Policy Committee (KKSK) approved the debts of
the farmers to be restructured. At the moment, it was agreed Rp2
trillion should be burdened to Dipasena's shareholders and the
other Rp1.8 trillion to the farmers.


SERASI AUTORAYA: Pefindo Assigns Rp500B Bond "idBBB+"
-----------------------------------------------------
PEFINDO assigned "idBBB+" ratings for PT Serasi Autoraya (the
Company or SERA) and its proposed Rp500 billion bond. The
ratings reflect the Company's strong presence in car rental
services with an impressive historical profitability, but are
mitigated by an aggressive business growth strategy which will
largely be financed with the borrowing funding. With good brand
name of TRAC, SERA managed to become one of the largest car
rental companies in Indonesia, focusing on car rental services
for corporate segment with long-term contracts. The Company is a
member of Astra Group, who owns 100.0% of the company's shares.

Mitigating factors for the above rating are:

   * Unproven business model of long-term car rental business in
Indonesia. Although the Company has succeeded to record an
impressive historical business growth, its business continuity
will highly depend on the further development of long-term car
rental industry in Indonesia. In addition, relatively low
barrier to entry could lead to the tightening competition, which
might constrain the Company's further business growth.

  * Relatively aggressive policy on financial leverage. The
Company's aggressive growth strategy will be largely financed
with borrowings, which in turn will significantly increase the
Company's financial leverage. With the planned bond issuance of
IDR500 billion, debt equity ratio could be higher than 5.0x, the
current maximum debt covenant from its existing creditors.


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J A P A N
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JAPAN AIRLINES: Unveils 1Q03 Financial Results
----------------------------------------------
The JAL Group announced consolidated financial results for the
first quarter (April through June 2003) of the current financial
year. This is the first time that the JAL Group has announced
quarterly results. Until now it had been the usual practice to
announce half-year results. Total operating revenues for the
three-month period were 398.8 billion yen. Operating costs were
475.8 billion yen, resulting in an operating loss of 76.9
billion yen. Ordinary income was a loss of 76.7 billion yen and
the first quarter net result was a 77.2 billion yen loss.

International passenger and cargo business were seriously
affected by the negative impact on demand resulting from the
Iraq conflict and the outbreak of SARS. On domestic routes there
was an increase in individual passenger traffic resulting from
the group's improved schedule, following the integration of the
Japan Airlines and Japan Air System domestic networks.

Over the past 10 years, the first quarter result generally shows
a loss, with the loss being made up and profits earned in the
second quarter. The first quarter results are in line with the
JAL Group forecast announced May 16, 2003.

JAL Group consolidated result (billions of yen)

                               Period: First quarter FY 2003
                               April 1 - June 30

Total operating revenue             398.8
Air transport segment only results

  International passenger           93.8
  Domestic passenger               146.0
  International cargo               35.6

Operating income                  - 76.9
Ordinary income                   - 76.7
First quarter net income (loss)   - 77.2

The lingering effects of the 2001/9/11 terror attacks, the
combined effects of the Iraq conflict and the SARS outbreaks hit
international passenger traffic hard and the number of
passengers was 46 percent down on the same period last year.
Revenue passenger traffic volume in terms of revenue passenger
ton kilometers performed was 39 percent down.

Domestic passenger traffic was unaffected by external factors
and increased in volume by 2 percent on last year, with an 1
percent improvement in volume in terms of revenue passenger ton
kilometers.

International cargo traffic was 5 percent down in volume, partly
due to the reduction in the number of passenger flights
following the SARS outbreaks and the subsequent loss of cargo
carrying capacity.

Demand was low on transpacific routes.

Although the price of fuel rose to US$ 30.5 per barrel of
Singapore kerosene in the first quarter, compared to US$ 27.00
per barrel in the same period last year, the Group fuel bill was
only 300 million yen up on last year, same period, because of
reduced consumption resulting from passenger flight suspensions
and favorable exchange rates.

Non-operating revenue included 8.4 billion yen in credits
relating to aircraft purchase. Generally favorable foreign
currency exchange rates, notably the US$-Yen rate, had a
positive effect on operating income of 4 billion yen.(First
quarter 2002, US$:Yen rate 129.3 yen per dollar: first quarter
FY2003, US$:Yen rate 119.0 yen per dollar).

For a copy of JAL Groups consolidated traffic statistics in the
first quarter April 1- June 30, 2003 vs. April 1 - June 30,
2002, go to http://www.jal.jp/en/press/2003/080101/img/FIRST
percent20QUARTER percent20FY2003.pdf


JAPAN AIRLINES: Suspends Sapporo-Honolulu Flights From Oct 1
------------------------------------------------------------
Japan Airlines (JAL) will suspend six weekly flights between
Sapporo and Honolulu from October 1 after suffering from the
effects of the Iraq war and severe acute respiratory syndrome
(SARS), Kyodo News reports, citing JAL President Katsuo Haneda.
The airline booked a group net loss of 77.3 billion yen (US$642
million) for the three months ending June 30, after the severe
acute respiratory syndrome (SARS) virus caused a slump in air
travel demand, the Troubled Company Reporter-Asia Pacific
reported recently.


JAPAN HIGHWAY: Former Employees Demand President Resignation
------------------------------------------------------------
Representatives of 125 former employees of Japan Highway Public
Corporation submitted a petition Tuesday demanding that Haruho
Fujii step down as President for bringing disgrace to the semi
governmental corporation, reports the Japan Times. The former
employees protested Fujii's recent conduct, including what they
call his unfair transfer of Sachio Katagiri, a senior Japan
Highway official and advocate of its privatization who
apparently blew the whistle by claiming the firm hid its capital
deficit. Katagiri's transfer from Japan Highway's Tokyo
headquarters to the post of deputy chief at its Shikoku branch
was considered a demotion linked to office politics. Last week,
the corporation removed Katagiri from the Shikoku position after
he contributed an article to a newsmagazine alleging the firm
hid a balance sheet showing it is already in a state of serious
capital deficit.

Earlier, members of the group demanded that Fujii give a clear
account of the present state of the corporation urging him to
heed opinions of the rank-and-file in pursuing reforms and to
stop what they called unfair personnel transfers. The group
charged that Fujii has failed to respond to such requests and
continues to give unconvincing replies to allegations over the
secret balance sheet.


RESONA HOLDINGS: Chairman Braces For Harsh Reassessment Results
---------------------------------------------------------------
Eiji Hosoya, the Chairman of Resona Holdings Inc., is bracing
for the possibility that the reassessment of the troubled
group's loan portfolio due out in September will show harsh
results, Kyodo News reports.

Resona Holdings Inc.'s outstanding balance of deposits at its
subsidiary banks totaled 32,892.1 billion yen at the end of
June, a drop of 2,018.2 billion yen from the end of March, TCR-
AP reported recently. As nearly 80 percent of the deposit
decreases involved accounts held by domestic business
corporations, the decline also reflects their withdrawal of
money to pay back loans. The injection of public funds into
Resona Bank at the end of June is expected to raise Resona
Holdings' capital adequacy ratio from 3.78 percent at the end of
March to the lower half of the 12 percent level at the end of
September.


SANKYO SEIKI: JCR Places BB+ Rating on Credit Monitor
-----------------------------------------------------
Japan Credit Rating Agency (JCR) continues to place ratings of
BB+ and J-3 on the bonds and CP program of Sankyo Seiki Mfg.
Co., Ltd. under Credit Monitor, respectively.

Issue Amount (billion) Issue Date Due Date Coupon
Callable convertible
Bonds no.2 Y10 Oct. 2,
2000 Sept. 28,
2007 0.2 percent

CP:
Maximum: Y10 billion
Backup Line: 0 percent

RATIONALE:

Sankyo Seiki announced that Nidec would buy 57,800,000 shares of
it. As a result, Nidec will be the largest shareholder of Sankyo
Seiki with the stake being 39.8 percent. JCR announced the
downgrade of the rating for Sankyo Seiki on May 29, given the
large delay in recovery of the earnings. It placed the rating
under Credit Monitor continually to examine carefully the
effectiveness of the measures to be taken to improve the
earnings and the degree of impact of the deterioration in
performance on the financials. JCR places Credit Monitor
continually to examine impact of the capital tie-up and of the
deterioration in performance on Sankyo Seiki.


SANKYO SEIKI: Enters Alliance With Nidec Corp.
----------------------------------------------
Nidec Corporation and Sankyo Seiki Mfg. Co., Ltd. Announce
Capital Alliance Nidec Corporation (Nidec) and Sankyo Seiki Mfg.
Co., Ltd. (Sankyo) held meetings of their respective boards of
directors on August 5 and decided that Sankyo will issue new
shares of its common stock to Nidec. As a result, Nidec will
become the largest shareholder of Sankyo.

1. Overview of Alliance

Sankyo will issue 57,800,000 new shares of its common stock to
Nidec and Nidec will pay Sankyo Y12,484,800,000 (based on
Y239.42 per share, the average closing price of Sankyo's share
of its common stock on the Tokyo Stock Exchange during the six
months from February 5, 2003 to August 4, 2003, with a 9.78
percent discount). The payment date will be September 30, 2003.
As a result, the total outstanding shares of the common stock of
Sankyo will be 145,111,591 shares, including 87,311,591 shares
currently outstanding, 39.8 percent of which will be held by
Nidec.

2. Purpose of Alliance

Nidec is the world's top manufacturer of small precision motors,
and currently maintains the largest market share in the world
for spindle motors, which rotate disks and are at the heart of
hard disk drives. Nidec, together with its group companies,
further aims to become the world's No. 1 manufacturer in
comprehensive drive technology in such diverse areas as
information technology devices, office automation devices, home
appliances, and automobile and industrial machinery, with the
phrase "Everything that Spins and Moves" as its keyword. It is
making efforts to further improve its technology development and
production technology and to strengthen its mass production
system, as well as its system for domestic and foreign sales.
Sankyo, whose fundamental management principle is being a
"technology Company," aims to become the No. 1 manufacturer of
opt-mechatronics, with a core focus on actuators and sensors,
through small precision motors, optical pickups, magnetic card
readers and industrial robots.

Sankyo's hard disc drive fluid dynamic bearing (FDB) motor
business, on which the Company has focused its attention as the
next major product line, is receiving high recognition for its
excellence in development and design, as well as its state-of-
the-art production facility. However, its expenses are
increasing, and it is expected to take some time before the FDB
motor business to become profitable.

The capital alliance of these two companies is a result of their
matching corporate strategies: while Nidec aims to further
enhance the group's organizational strength and management,
focusing on "Everything that Spins and Moves," Sankyo aims to
quickly establish an efficient production system and enhance its
customer base for its strategic hard disc drive FDB motor
business. As a member of the Nidec Group, Sankyo will pursue
synergies with Nidec and its group companies in various areas
starting with the FDB motor business, and will concentrate its
management resources on areas in which Sankyo and Nidec have
comparative advantages.

Nidec highly values Sankyo's technologies, which it expects will
enhance Japan's international competitiveness when proactively
utilized under the umbrella of Nidec Group for the development
and exploitation of new products and businesses.

As a result of this capital increase, Sankyo will quickly
establish a profit-making system by dramatically improving its
financial position and accelerating its ongoing management
improvement plan.

After the capital alliance, there will be no change in Sankyo's
management system and business relationships.

3. Schedule

August 5, 2003 Resolution of the board of directors of Sankyo on
the issuance of new shares September 30, 2003 Payment date
October 1, 2003
Effective date of capital increase

4. Terms and Conditions of Issuance of New Shares

(1) Number of newly issued shares 57,800,000
(2) Price per newly issued share Y216
(3) Total price of newly issued shares Y12,484,800,000
(4) Amount to be built in capital Y108 per share
(5) Date of subscription September 29, 2003
(6) Date of payment September 30, 2003
(7) Date of dividend accrual April 1, 2003
(8) Dividend recipient and number of shares on which dividend is
paid to such recipient Nidec, 57,800,000 shares
(9) Transfer restriction

Nidec will report to Sankyo when it transfers issued new shares
within 2 years from the date of issuance (October 1, 2003).

(10) Each of the above items is subject to the effectiveness of
the filing pursuant to the Securities and Exchange Law of Japan.

Sankyo Seiki will be unable to avoid a third successive
operating deficit in the year to March 2004, according to TCR-AP
recently. This is due to start up delays in the fluid dynamic
bearing motors for HDD's on which the Company is concentrating
its management resources, and the slump in optical pick up
units. Interest bearing debt is also on the rise. In the year to
March 2003, Sankyo Seiki booked some fluid dynamic bearing
motor-related development expenses to deferred assets, posing
the Company's weak financial base.

For more information, go to
http://www.nidec.co.jp/english/topics/pdf/030805sankyo.pdf

Contact:
Hiroshi Toriba
Senior Director, Nidec Corporation
Investor Relations
+81-75-935-6140
HIROSHI_TORIBA@notes.nidec.co.jp


SEIYU LTD.: Sees Y10B Net Loss
------------------------------
Seiyu Ltd. sees a net loss of 10 billion yen (US$83 million) for
the 10 months to December, forcing the Company to review its
weak capital structure, according to the Financial Times on
Tuesday. The retailer blamed the weak economy, unseasonably cool
weather and a prolonged rainy season for slower-than-forecast
sales. Analysts say that Seiyu's problems also lie in higher
costs and disruption during the remodeling of shop floors as
Wal-Mart restructures the chain.

The struggling retailer with more than 400 supermarkets and
general merchandise stores found a lifeline when Wal-Mart bought
a 6.1 per cent stake in the Company last year. Wal-Mart
increased its stake in December and has the option to boost its
share to 66.7 per cent by December 2007.


SEIYU LIMITED: Places BB+ Rating Under Credit Monitor
-----------------------------------------------------
Japan Credit Rating Agency (JCR) has placed the ratings of BB+
and J-3 on senior debts, bonds and CP program of Seiyu Ltd.
under Credit Monitor, respectively.

Senior debts
Issue Amount (billion) Issue Date Due Date Coupon
Convertible
Bonds no.1 Y30 Sept. 12,
1996 Aug. 29,
2003 0.8 percent

CP:
Maximum: Y70 billion
Backup Line: 0 percent

RATIONALE:

Seiyu announced on Tuesday the downward revision of earnings
forecasts for fiscal 2003 ending December 31, 2003. It would
incur a net loss of 10 billion yen for fiscal 2003. Drop in the
shareholders' equity due to the loss is beyond JCR's assumption.
Seiyu also announced that it would take measures to strengthen
the capital. These measures are not known, however. JCR placed
the ratings for Seiyu under Credit Monitor to examine carefully
the progress of the measures to strengthen capital, impact on
capital structure and earnings trend.


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


HANARO TELECOM: Upgrades A-Bone Connectivity to 155Mbps
-------------------------------------------------------
Internet Initiative Japan (IIJ), Japan's leading Internet access
and comprehensive network solutions provider, announced that its
26.7 percent affiliate Asia Internet Holding Co., Ltd. (AIH) and
Hanaro Telecom, Inc., (Hanaro, Headquarters: Seoul, Korea, CEO:
Shin Yun Shik) have upgraded A-Bone connectivity to STM-1
(155Mbps) from existing 2Mbps.

"A-Bone" is an IP backbone network, which directly connects each
country in the Asia-pacific region with high-speed circuits.
With appreciation on its network quality that enables to provide
reliable IP connectivity service to its Internet users, AIH and
Hanaro decided to enlarge capacity of the connectivity to "A-
Bone". It further enhances Hanaro's Internet backbone, which
already comprises multiple capacities to various countries. In
addition, this upgrade enables the enterprises deploying in
Japan and Korea to enjoy more reliable IP-VPN service through
"A-Bone VPN Service".

In order to support Korea and other Asian countries' ever
expanding growth of Internet, A-Bone will continue to sharpen
its competitive edge as the region's central piece of Internet
infrastructure of the Asia-Pacific and contribute to facilitate
faster and more-reliable transmission of data communications in
the region.

About Hanaro:

Hanaro Telecom Inc., which was officially launched in September
1997, marketing the advent of a new era of competition in Korea
local call market, has grown to be the high-speed Internet
service provider in the region. With Seoul, Busan, Incheon and
Ulsan at the head of the list, in April 1999, Hanaro has
expanded the Internet access market by deploying nationwide
fiber optic networks covering 100 cities, in the end of 2002.
Hanaro Telecom integrated broadband Internet access services,
such as 'I am ADSL', 'HFC' and 'BWLL' into single brand,
'HanaFOS', in June, 2001. Website: http://www.hanaro.com

About AIH:

Asia Internet Holding Co., Ltd. (AIH) was established in 1995,
to construct and operate "A-Bone", the Internet backbone network
covering the Asia Pacific region. A-Bone directly links
countries in the region with high-speed and large-capacity
circuits, which enables intra-Asian information traffic to be
routed effectively. Shareholders supported AIH in the region
such as Internet Initiative Japan (IIJ, NASDAQ: IIJI; share
holding ratio: 26.69 percent), Sumitomo Corporation (31.61
percent), NTT Communications, Itochu Corporation, Telekom
Malaysia and Communications Authority of Thailand. Website:
http://www.abone.net

About IIJ:

Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ:
IIJI) is Japan's leading Internet-access and comprehensive
network solutions provider. The company has built one of the
largest Internet backbone networks in Japan, and between Japan
and the United States. IIJ and its group of companies provide
total network solutions that mainly cater to high-end corporate
customers. Services range from the delivery of new generation
network services over an optical-fiber infrastructure that is
optimized for data communications, to the construction of pan-
Asian IP backbone networks. The company also offers high-quality
systems integration and security services, Internet access,
hosting/housing, and content design.

Meanwhile, Reuters reported that Hanaro Telecom Inc. would float
300 billion won ($252.9 million) in short-term bonds to help
ease cash shortage. The loss-making Internet provider has 356
billion won in debt set to mature this year and it would also
seek to raise foreign capital in a move to secure more operating
funds.

CONTACT: Internet Initiative Japan
Mayumi Ikeda or Yuki Teshima, 3-5259-6310
press@iij.ad.jp
http://www.iij.ad.jp/


HANARO TELECOM: Shareholders Reject LG's Share Sale Plan
--------------------------------------------------------
Shareholders of Hanaro Telecom rejected a new share sale plan
proposed by LG Group, JooangAng Daily reported Wednesday. LG put
to vote a plan to issue 200 million new shares, which have a
face value of 5,000 won (US$4.20), at 2,500 won, aiming to raise
500 billion won in total for the financially distressed Hanaro.

The plan earned only 62 percent votes, falling short of the
necessary 67 percent. Of the total 279 million floated shares of
Hanaro, 72 percent, or 233 million shares, took part in the
vote. LG Group and Daewoo Securities Co., the fourth largest
shareholder, supported the plan, while Samsung Electronics and
SK Telecom opposed it.

The LG Group is currently the biggest shareholder of Hanaro
Telecom, holding a 15.92 percent stake, followed by Samsung
Electronics (8.49 percent) and SK Telecom (5.5 percent).


HYUNDAI MOTOR: Agrees to Labor's Demand
---------------------------------------
Hyundai Motor Co. accepted on Tuesday the labor union's demand
for participation in management in an apparent bid to end a
prolonged strike that has disrupted operations for more than a
month, Asia Times reports. In negotiations, the Company agreed
to notify the union of a board meeting and form a joint panel to
review and approve management decisions like mergers and
acquisitions, investment and expansion, plant relocation and
introduction of new machinery and technology.


SK GLOBAL: Schedules & Statement Might Appear on August 20
----------------------------------------------------------
SK Global asked the U.S. Bankruptcy Court for the Southern
District of New York for an extension of time to prepare and
deliver its Schedules and Statements until October 4, 2003.
That's a bit too long at this early juncture, Judge Blackshear
says. With that in mind, Judge Blackshear extends the deadline
for SK Global America Inc., to file its Schedules of Assets and
Liabilities and Statement of Financial Affairs through August
20, 2003, without prejudice to the Debtor's right to request
further extensions as necessary. (TROUBLED COMPANY REPORTER Vol.
6. Issue No. 154)


SK GLOBAL: Debtors Ask to Maintain Cash Management System
---------------------------------------------------------
Greg Zipes, Esq., representing the United States Trustee,
advised Judge Blackshear that Bank One, N.A., isn't on the U.S.
Trustee's list of Authorized Bank Depositories for the Southern
District of New York.  Accordingly, none of SK Global's funds
should be deposited at Bank One post petition.  The Debtor
should be required to transfer all funds held in accounts at
Bank One to a banking institution that is qualified as an
Authorized Bank Depository for the Southern District of New York
without delay.

Judge Blackshear declines the U.S. Trustee's draconian
invitation.  By September 8, 2003, Judge Blackshear rules, Bank
One must qualify as an Authorized Bank Depository for the
Southern District of New York or the Debtor will need to
transfer its funds at Bank One to an approved institution. (SK
GLOBAL BANKRUPTCY NEWS, Issue No. 2, July 30, 2003)


SK GLOBAL: Foreign Lenders Agree to Take 43%-48% Payment
--------------------------------------------------------
Mr. M.W. Jung, President of SK Global Co., Ltd., Mr. Kang M.
Lee, Senior Executive Vice President of Hana Bank and Mr. Guy
Isherwood, Chairman of the Foreign Bank Steering Committee of
creditors of SK Global, announced today that SK Global and the
members of the Foreign Bank Steering Committee had reached
agreement on the broad commercial terms for restructuring the
debt owed by SK Global's overseas subsidiaries to foreign banks.
Those terms have been put before the foreign banks for their
consideration and approval.  The Foreign Bank Steering Committee
will work with SK Global and Hana Bank over the next few weeks
to settle the details of the proposal.

    43 percent-48 percent in Cash Plus Warrants

Under the proposal, foreign bank creditors will surrender their
claims against SK Global's overseas subsidiaries in exchange for
a payment of 43 percent in cash (payable in four quarterly
installments) and an additional, incentive payment of 3 percent
to 5 percent depending on the level of participation of SK
Global's foreign bank creditors in the restructuring.  The
incentive payment will be made in a single installment 4-1/2
years after the closing of the restructuring.  If 95 percent or
more of the outstanding debt owed to foreign banks is tendered
in the restructuring, the incentive payment will be 5 percent.
This amount will fall to 4 percent if participation is between
90 percent and 95 percent, and to 3 percent if participation is
between 80 percent and 90 percent.  All payments to be made by
SK Global will be secured by a pledge of marketable securities.
In addition, participating foreign bank creditors will receive
warrants to purchase common stock of SK Global beginning January
1, 2005.

"We are extremely pleased with the terms of the proposal," said
Mr. Jung.  "This is in line with the restructuring plan agreed
by SK Global with its Korean financial institution creditors and
will permit SK Global to proceed to speedy implementation of its
recovery plan and avoid the difficulties and uncertainties of
bankruptcy reorganization."

Mr. Isherwood, speaking on behalf of the Foreign Bank Steering
Committee, said, "The members of the Foreign Bank Steering
Committee of SK Global are pleased that we have been able to
reach an agreement that reflects the value of our claims and
will allow the foreign banks to participate in the recovery of
SK Global.  A bankruptcy proceeding against SK Global in Korea
would have served the interests of neither the Company nor its
creditors, and we are gratified that a fair settlement is now
possible." (SK GLOBAL BANKRUPTCY NEWS, Issue No. 2, July 30,
2003)


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


CHASE PERDANA: Changes Registered Address
-----------------------------------------
Chase Perdana Berhad posted this notice:

Change description : Registered
Old address        : Suite 8.3, 8th Floor, Wisma Chase Perdana,
                     Off Jalan Semantan, Damansara Heights,
                     50490 Kuala Lumpur
New address        : Suite 7.3, 7th Floor, Wisma Chase Perdana,
                     Off Jalan Semantan, Damansara Heights,
                     50490 Kuala Lumpur

Telephone no       : 03-27183700
Facsimile no       : 03-20940503
E-mail address     : www.chaseperdana.com.my
Effective date     : 01/08/2003

Last month, the Troubled Company Reporter - Asia Pacific
reported that Chase Perdana provided an update on the status of
its default in the repayment of both the principal and interest
of all credit facilities granted by Financial Institutions.
Details can be found at
http://bankrupt.com/misc/TCRAP_Chase0707.xls.


CONSTRUCTION AND SUPPLIES: To Make De-listing Show Cause Letter
---------------------------------------------------------------
Construction and Supplies House Berhad wishes to announce the
following:

   1. that CASH has been accorded fourteen (14) days by the
Kuala Lumpur Stock Exchange to make written representations to
the Exchange on why its securities should not be removed from
the Official List of the Exchange;

   2. in the event the Exchange decides to de-list CASH, the
securities of CASH shall be removed from the Official List of
the Exchange upon the expiry of fourteen (14) days from the date
of notification of the decision to de-list CASH or upon such
other date as may be specified by the Exchange; and

   3. in the event the Exchange decides not to de-list CASH,
other appropriate action/penalty(ies) may be imposed pursuant to
Paragraph 16.17 of the Listing Requirements.


CONSTRUCTION AND SUPPLIES: Search for White Knight Continues
------------------------------------------------------------
On 26 February 2001, Construction and Supplies House Berhad
Was considered an "affected listed issuer" pursuant to PN4
issued by the KLSE. PN4 companies are required to provide a
monthly status update to the KLSE.

On 30 June 2003, Alliance Merchant Bank Berhad (Alliance), on
behalf of CASH, had announced that the previous corporate
proposals as announced on 28 February 2002 (Previous Proposals),
had been terminated.

With the termination of the Previous Proposals, CASH is now
trying to secure a new "white knight" in order to regularize its
financial condition. Presently, CASH has yet to secure any
suitable candidate as its new "white knight".

Appropriate announcements to update the status of CASH will be
made as and when required to inform the KLSE on any further
developments, which may take place.


COUNTRY HEIGHTS: Clarifies Divestment Media Report
--------------------------------------------------
Country Heights Holdings Bhd refers to the Kuala Lumpur Stock
Exchange's query on 4 August 2003 in relation to the article
entitled "Khazanah may buy stakes in CHHB properties" that
appeared in The Edge, page 1, on Monday, 4 August 2003.

As previously announced, CHHB, as part of its strategic business
plan, is weighing the option of divesting assets within the CHHB
Group to focus on property development. To this end, preliminary
discussions have been held with various parties but no agreement
has been reached as at to date.

CHHB will make an appropriate announcement should there be any
agreement or decision by the Board of the Company in its
strategic business plans per the Exchange's Listing
Requirements.

Kuala Lumpur Stock Exchanges's Query Letter content:

We refer to the above article appearing in The Edge, page 1, on
Monday, 4 August 2003, a copy of which is enclosed for your
reference. In particular, we would like to draw your attention
to the underlined sentence, which is reproduced as follows:

"Country Heights Holding Bhd (CHHB) may sell strategic stakes in
some assets in the Mines Resort City to Khazanah Nasional..."

In accordance with the Exchange's Corporate Disclosure Policy,
you are requested to furnish the Exchange with an announcement
for public release confirming or denying the above reported
article and in particular the underlined sentence after due and
diligent enquiry with all the directors, major shareholders and
all such other persons reasonably familiar with the matters
about which the disclosure is to be made in this respect.

In the event you deny the above sentence or any other part of
the above article, you are required to set forth facts
sufficient to clarify any misleading aspects of the same.

In the event you confirm the above sentence or any other part of
the above article, you are required to set forth facts
sufficient to support the same.

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

Yours faithfully,
WAN RAHIEL HJ WAN RAMLI
Assistant Manager
Listing Operations
IS/WSW/NMA Copy to: Securities Commission (via fax)


CSM CORPORATION: Provides Financial Assistance to Units
-------------------------------------------------------
The Board of Directors of CSM Corporation Berhad wish to make
this announcement pursuant to Paragraph 3.0 of Practice Note No.
11/2001 which is to be read in conjunction with Paragraph
8.23(1)(ii) of the Kuala Lumpur Stock Exchange Listing
Requirements.

Go to http://bankrupt.com/misc/TCRAP_CSM0807.docfor the
information on financial assistance rendered or made by CSM, in
the format as set out in Appendix PN 11/2001-A of the said
Practice Note.


CSM CORPORATION: Updates Defaulted Loan Repayments Status
---------------------------------------------------------
Pursuant to the KLSE Practice Note No. 1/2001, following is an
update on the status of default in interest payments and
principal loan repayments of the CSM Group bank borrowings as at
31st July 2003:

Bank    Facility   Limit   Type   Total outstanding   Existing
lender                       of       amount as at     security
                           default     31 July 2003

RHB Bank  Term      RM40M  Principal  RM43.09M         Land and
Berhad    Loan             repayment                   building
                           and interest
                           payments

RHB Bank Overdraft i)RM35M  Principal i) RM46.09M      Land and
Berhad                      repayment                  building
                            and
                   ii)RM45M interest  ii) RM59.27M     Third
                            payments                   party
                                                       land and
                                                       building

Bank Islam Trade   i) RM10M Trade     i) RM9.40M       Clean
Malaysia   facilities       facilities
Berhad                      overdue
                   ii) RM4M Trade     ii) RM4.05M      Land &
                            facilities                 Building
                            overdue                    and
                                                       Corporate
                                                       Guarantee
                                                       from CSM

MP Factors Factoring RM5M   Factoring  RM6.27M         Land &
Sdn. Bhd.  facilities       facilities                 Building
                            overdue                    and
                                                       Corporate
                                                       Guarantee
                                                       from CSM

Further to the previous monthly status report, there have been
no further changes to the above.

The Company has also released it quarterly report for the year-
ended 30 June 2003. A copy can be found at
http://bankrupt.com/misc/TCRAP_CSM20807.doc.


HIAP AIK: Unit Faces Court Summons From SCI
-------------------------------------------
The Special Administrators of Hiap Aik Construction Berhad
(Special Administrators Appointed) informed on the following
litigation matter:

Kuala Lumpur High Court Companies (Winding-up) No.: D8-28-25-
2003 SCI Marketing Sdn Bhd - v - Solid Panel Sdn Bhd

This is to announce that SCI Marketing Sdn Bhd (SCI) has filed a
petition pursuant to the provisions of the Companies Act 1965 to
wind up Solid Panel Sdn Bhd (SPSB) a wholly owned subsidiary of
Hiap Aik Construction Berhad (Special Administrators Appointed)
(HACB) on 30 Jun 2003 for the sum owing of RM30,078.11 as at 1
Feb 2003 and a copy of the said winding-up petition have been
received by HACB on 1 Aug 2003.

Hiap Aik appended below the additional information pursuant to
Appendix 9A (Part C) of the Kuala Lumpur Stock Exchange Listing
Requirements:

   i. Interest rate claimed under the petition is 1.5% per month
on the outstanding balance from date of expiry to date of
regularization of account.

   ii. Failure by SPSB to pay its debts led to the filing of the
petition.

   iii. Total cost of HACB's investment in SPSB is RM899,996.
However full provision for diminution in value of the investment
had been made during the financial year ended 31 December 2002
and was reflected in the financial statements for that year.

   iv. SPSB ceased its operation in year 2002 and therefore
there would be little or no operational or financial impact
other than the judgment sum.

   v. Expected losses arising from the aforesaid petition would
be to the extend of the outstanding amount plus accrued
interest.

   vi. To date, no action have been taken by SPSB in respect of
the petition and SPSB will not be taking any actions with
regards to the winding up petition as all companies under the
HACB Group will eventually be wound up as per the Proposed
Restructuring Scheme. Please refer to our announcement to the
Exchange dated 14 November 2002 for the details of the Proposed
Restructuring Scheme.

   vii. Date of hearing of the petition is fixed on 30 September
2003.


KELANAMAS INDUSTRIES: Issues Scheme Status Update
-------------------------------------------------
On 26 November 2001, Kelanamas Industries Berhad had entered
into a Memorandum of Understanding (MOU) with MP Technology
Resources Berhad (MPTR), Tai Seng Plastic Industries Sdn Bhd
(Tai Seng) and other companies, in relation to a Proposed Scheme
to regularize its financial condition.

Subsequently on 28 February 2002, KIB had entered into a
Restructuring Scheme Agreement (RSA) with MP Technology
Resources Berhad (MPTR), which involves the injection of the
following companies into MPTR.

   a) Tai Seng Plastic Industries Sdn Bhd (Tai Seng)
   b) Eng Zan Machinery & Trading Sdn Bhd (Eng Zan)
   c) Highlight Plastic Machinery Sdn Bhd (HL)
   d) VCM Precision Sdn Bhd (VCM)
   e) Tralvest (M) Sdn Bhd (Tralvest)
   f) MP Plastic Industries Sdn Bhd (MPPI)

(Collectively referred to herein as "New Business")

The New Business is a group of companies involved in the
manufacturing of plastic related products. Pursuant to the
Proposed Restructuring, MPTR would assume the listing status of
KIB. Under the RSA, KIB and the New Business agreed to undertake
and implement a restructuring scheme, which is subject to
approval from the authorities, and consist of the following
exercises:

   (a) Proposed Acquisition of KIB;
   (b) Proposed Acquisition of SBM Food Industries Sdn Bhd;
   (c) Proposed Scheme of Arrangement;
   (d) Proposed Acquisition of New Business;
   (e) Proposed Special Issue;
   (f) Proposed Offer for Sale;
   (g) Proposed Acquisition of MPR;
   (h) Proposed Acquisition of Plastronic;
   (i)  Proposed Transfer of Listing Status;
   (j) Proposed Disposal/Liquidation; and
   (k) Proposed General Offer Waiver (GO Waiver)

(Collectively referred to herein as "Proposed Restructuring")

The transactions contemplated above are inter-conditional to
each other save for the Proposed Acquisition of MPR, Plastronic
and Disposal/Liquidation. The Proposed Acquisition of MPR,
Plastronic and Disposal/Liquidation are conditional upon the
completion of the other proposals under the Proposed
Restructuring but not vice versa.

On 3 May 2002, AmMerchant Bank Berhad (AmMerchant) has made
announcement on behalf of the Board of Directors of KIB to seek
the approval of Kuala Lumpur Stock Exchange (KLSE) for an
extension of time of three (3) months, from 3 May 2002 to 3
August 2002 for KIB to make the submission of its proposal to
the authorities.

On 18 June 2002, AmMerchant has made announcement on behalf of
the Board of Directors of KIB that KLSE has, via its letter
dated 17 June 2002, approved the Company's application for an
extension of time to make the required submission to the
authorities. The extension of time is effective from 3 May 2002
to 3 August 2002.

On 30 August 2002, KIB submitted the Proposed Restructuring to
the Securities Commission. For further details, kindly refer to
the announcements made by AmMerchant on behalf of KIB on 2
August 2002 and 30 August 2002.

Kuala Lumpur Stock Exchange has, via its letter dated 9
September 2002, approved the Company's application for an
extension of time from 3 August 2002 to 30 August 2002 to make
the required submission to the authorities. As previously
announced, the submission had been made to the relevant
authorities on 30 August 2002.

The Foreign Investment Committee (FIC) has via its letter dated
21 November 2002, approved the Proposed Restructuring Scheme
subject to MPTR, the vehicle to assume the listing status of
KIB, maintaining at least 30% bumiputra equity interest at the
point of listing. For further details, kindly refer to the
announcement made by AmMerchant on behalf of KIB dated 2
December 2002.

The Securities Commission has via its letter dated 31 December
2002, approved the Proposed Restructuring Scheme subject to
conditions as stated in the said letter. For further details,
kindly refer to the announcement made by AmMerchant on behalf of
KIB dated 2 January 2003.

On 14 January 2003, AmMerchant announced on behalf of the Board
of Directors of KIB that via a letter dated 14 January 2003, an
appeal was made against the FIC's condition such that MPTR, the
company to assume the listing status of KIB, be granted a period
of three (3) years from the date of quotation of MPTR's shares
on the Main Board of the KLSE to achieve the 30% bumiputra
equity interest instead of upon listing of MPTR's shares as
contained in FIC's approval letter dated 21 November 2002.

On 20 January 2003, AmMerchant had announced on behalf of the
Board of Directors of KIB that the Ministry of International
Trade and Industry (MITI) has via a letter dated 15 January 2003
approved the Proposed Restructuring Scheme subject to
conditions. For further details, kindly refer to the
announcement dated 20 January 2003.

Further to the announcement dated 14 January 2003, AmMerchant
has on behalf of the Board of Directors of KIB announced on 12
March 2003, that the FIC has via a letter dated 6 March 2003,
granted MPTR a period of three (3) years (from the date of
quotation of MPTR's shares on the Main Board of the KLSE) to
increase its bumiputra shareholding interest to 30%.

On 22 April 2003, KIB has obtained a Court Order in term of the
Application under Section 176(1) of the Companies Act, 1965.

On behalf of the Board of Directors of the Company, AmMerchant
Bank Berhad has announce that MPTR, the vehicle to assume the
listing status of the Company, has on 29 July 2003 entered into
the Supplemental Agreement with the vendors.


KUMPULAN HARTANAH: Replies KLSE's Winding Up Petition Query
-----------------------------------------------------------
Kumpulan Hartanah Selangor Berhad refers to the Kuala Lumpur
Stock Exchange's query letter dated 4 August 2003 (Ref No : NM-
030804-37812) in relation to the Notice of Winding-Up Petition
on Sap Air Hitam Properties Sdn Bhd (Sap Air Hitam), a wholly-
owned subsidiary of Kumpulan Hartanah Selangor Berhad.

Kumpulan Hartanah furnished the information as requested by the
Exchange for public release:

   1. There is no interest charged on the amount claimed
pursuant to the Judgment Order.

   2. The solicitors for the Petitioner has on 13 May 2003 in
accordance with Section 218 of the Companies Act, 1965 served a
Notice for the said outstanding sum dated 8 May 2003 on SAP Air
Hitam at its registered office of Lot 1A, Plaza Perangsang,
Persiaran Perbandaran, 40000 Shah Alam, Selangor Darul Ehsan.
The Petitioner did not receive any payment and upon the expiry
of the 21 days of the Notice, the Petitioner filed and served
the Winding-Up Petition on SAP Air Hitam.

   3. The Company has made a settlement proposal before the
winding-up petition being served on SAP Air Hitam. The Company
is actively pursuing the payment proposal with the Petitioner
and are confident that the proposal can be resolved soonest on
an out of court basis.

Below is the KLSE's Query Letter content:

We refer to the your Company's announcement dated 1 August 2003
in respect of the aforesaid matter. In this connection, kindly
furnish the Exchange immediately with the following information
for public release:

   1. The interest rate on the amount claimed for, if any.
   2. The details of the default or circumstances leading to the
filing of the winding-up petition.
   3. The steps that your Company/SAP Air Hitam has taken and
will take with regards to the winding-up petition.

Yours faithfully,
INDERJIT SINGH
Senior Manager
Listing Operations
IS/WSW/NMA


LONG HUAT: Scheme Explanatory Statement Preparation Underway
------------------------------------------------------------
As announced by Southern Investment Bank Berhad on 22 and 25
July 2003 that conditional approvals had been obtained from
Securities Commission, Foreign Investment Committee and Ministry
of International Trade and Industry in relation to the proposed
restructuring exercise of Long Huat Group Berhad.

The Company is now in the process of preparing the Explanatory
Statement to the shareholders and scheme creditors of LHGB as
well as the circular to the shareholders of LHGB to obtain their
approvals for the proposed restructuring exercise at the
respective court convened meetings/extraordinary general
meeting.


PILECON ENGINEERING: Seeks Restraining Order Period Extension
-------------------------------------------------------------
Pilecon Engineering Berhad the announcement dated 5 May 2003
whereby the Kuala Lumpur High Court has, pursuant to Section
176(1) of the Companies Act, 1965 granted an order requiring
Transbay Ventures Sdn Bhd, a subsidiary of the Company (TVSB),
to convene a meeting with its creditors within ninety (90) days
from 5 May 2003 (Order to Convene Creditors' Meeting) as well as
a restraining order (Restraining Order) for a period of ninety
(90) days from 5 May 2003. The Restraining Order has expired on
3 August 2003.

Pursuant to the above, the Company wishes to announce that TVSB
is taking necessary steps to apply to the Kuala Lumpur High
Court for an extension of time to the Restraining Order in order
for TVSB to finalize the Proposed Debt Restructuring Scheme.


RNC CORPORATION: Disposal Proceeds Goes to Essential Creditors
--------------------------------------------------------------
RNC Corporation Berhad (Special Administrators Appointed) refers
to the announcements dated 22 May 2003 in relation to the
modifications to the Proposed Corporate and Debt Restructuring
(Proposed Scheme).

On behalf of the Special Administrators (SA) of RNC, the Board
announced that the Securities Commission has via its letter
dated 31 July 2003 (which was received on 4 August 2003)
approved the following:

   1) the disposal of assets of RNC and Arensi Plastics Sdn Bhd
(APSB) to Industrial Resins (Malaysia) Berhad (IRM) and/or its
nominee, Beta Network Sdn Bhd (BNSB) for a sale consideration of
RM1,500,000; and

   2) The proceeds of RM1,500,000 from the proposed disposal
shall be utilized to settle Essential Creditors in priority over
all classes of creditors.

Notes:

The Essential Creditors comprise persons with claims in respect
of:

   (i) payments, which are required to be made under law;
   (ii) costs, fees and expenses incurred or to be incurred by
the SA in connection with, but not limited to, the preparation,
approval and implementation of the workout proposal; and
   (iii) any credit facility provided to the SA by Danaharta
pursuant to Section 66A of the Pengurusan Danaharta Nasional
Berhad Act, 1998 as amended by Pengurusan Danaharta Nasional
Berhad (Amendment) Act 2000 and includes any subsequent
revisions therefrom.


SASHIP HOLDINGS: Receives De-listing Show Cause Notice From KLSE
----------------------------------------------------------------
The Special Administrators of Saship Holdings Berhad wish to
inform that on 1 August 2003, the Company had received a notice
from the Kuala Lumpur Stock Exchange (the Exchange) to show
cause as to why the securities of the Company should not be de-
listed from the Official List of the Exchange.

In respect of the above:

   a) the Company has been accorded 14 days by the Exchange to
make representations to the Exchange on why its securities
should not be removed from the Official List of the Exchange;

   b) in the event the Exchange decides to de-list the Company,
the securities of the Company shall be removed from the Official
List of the Exchange upon the expiry of 14 days from the date of
notification of the decision to de-list the Company or upon such
other date as may be specified by the Exchange; and

   c) in the event the Exchange decides not to de-list the
Company, other appropriate action/ penalty (ies) may be imposed
pursuant to paragraph 16.17 of the Listing Requirements.


SASHIP HOLDINGS: Required to Submit MA Reports to KLSE
------------------------------------------------------
The Special Admninistrators of Saship Holdings Berhad (Special
Administrators Appointed) wish to inform that the Company has
received a letter dated 1 August 2003 from the Kuala Lumpur
Stock Exchange (the Exchange) in respect of the above
applications and the Exchange has agreed to:

   1. waive Saship from the requirement of having to continue
with the services of the Monitoring Accountant (MA) appointed
pursuant to Paragraph 6.1 (a) of PN4 (Section 8.14 of the
Listing Requirement (LR). However the Special Administrators are
required to perform the services of the MA pursuant to Paragraph
6.1(a) of PN4 (Section 8.14 of the LR) which includes the
preparation and submission of MA reports to the Exchange; and

   2. allow Saship to submit the MA reports to the Exchange for
the periods from March 2003 to April 2003 and May 2003 to June
2003 within 30 days from the date of this letter.


TECHNO ASIA: Proposed Set-Offs and Transfers Agreement Executed
---------------------------------------------------------------
Techno Asia Holdings Berhad (Special Administrators Appointed)
Refers to the announcements made on 1 August 2003 in relation to
the Proposed Set-Offs and Transfers, which entails:

   (i) Proposed Set-Off and Transfer of Lot No. 6863 held under
HS(D) LP 14132 located in Mukim of Hutan Melintang, District of
Hilir Perak, Perak Darul Ridzuan by Ganda Plantations (Perak)
Sdn Bhd (SA Appointed) (GPPSB) to the Secured Creditor, namely
Malpac Capital Sdn Bhd (Malpac), or its Nominated Party at a
Transfer Value of RM13.300 Million (Proposed Set-Off and
Transfer of Lot 6863 by GPPSB); and

   (ii) Proposed Set-Off and Transfer of Lot No. 11644 held
under HS(D) Lp 13127 located in Mukim of Durian Sebatang,
District of Hilir Perak, Perak Darul Ridzuan by Cempaka Sepakat
Sdn Bhd (SA Appointed) (CSSB) to the Secured Creditor, namely
Malpac, or its Nominated Party at a Transfer Value of Rm34.098
Million (Proposed Set-Off and Transfer of Lot 11644 by CSSB).

AmMerchant Bank Berhad, on behalf of TAHB, wishes to announce
that the settlement agreements in relation to the abovementioned
Proposed Set-Offs and Transfers (in accordance with the approved
workout proposals of GPPSB and CSSB including any modifications
made thereto) have been executed on 4 August 2003.


TONGKAH HOLDINGS: Disposes of Quoted Securities
-----------------------------------------------
Tongkah Holdings Berhad informed that it had on 31 July 2003
been notified by PB Trustee Services Berhad (the trustee in
respect of the Company's RM186,558,296 Nominal Value of 5 year
1%-2% Redeemable Secured Convertible Bonds A 1999/2004 and
RM275,980,363 Nominal Value of 5 year 1%-2% Redeemable Secured
Convertible Bonds B 1999/2004 (collectively "Bonds")) that they
have on 25 and 28 July 2003, disposed of some of the Company's
securities held in public listed companies, which are pledged
with them in relation to the Bonds.

The proceeds of sale are retained in the sinking fund accounts
maintained pursuant to the respective trust deeds relating to
the Bonds.

Go to http://bankrupt.com/misc/TCRAP_Tongkah0807.pdffor
information on the securities disposed.


WIDETECH (MALAYSIA): Widens Group Loss to RM1.611M
--------------------------------------------------
The Board of Directors of Widetech (Malaysia) Berhad informed
that its Audited Accounts for the financial year ended 31 March
2003 recorded a Group Loss After Taxation and Minority Interest
(Audited Results) of RM1,611,000. This represents an increase of
RM674,000 or 72% as compared with the Unaudited Group Loss After
Taxation and Minority Interest (Unaudited Results) of RM937,000
which was announced to the Exchange on 28 May 2003.

The variance between the Audited Results and Unaudited Results
is primarily due to the provision of inventories, debtors and
employee benefits of RM517,000, RM94,000 and RM34,000
respectively in connection with the purported and unilateral
termination of the sole distributorship agreement by Camozzi
s.p.a., disclosed in the Notes to the Fourth Quarterly Report
announced to the Exchange on 28 May 2003. The Company's
subsidiaries, namely, EPA Automation Sdn Bhd and EPA Automation
Pte Ltd had on 28 May 2003, commenced litigation against Camozzi
s.p.a. and three others which was announced to the Exchange on
13 June 2003 and 20 June 2003 on the basis that the said
termination is wrongful and unlawful.

In view of the litigation, the Company has adopted a prudent
approach towards the said provisions resulting in the increase
in the loss position.


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


MANILA ELECTRIC: Appoints Jaime Camacho as Information Officer
--------------------------------------------------------------
Manila Electric Co. (Meralco) has named its Vice President Jaime
Camacho as Chief Information Officer effective August 16, 2003,
replacing Roberto Almazora. Camacho will hold both posts. The
Philippines largest power distributor disclosed no other details
of the appointment.


MANILA ELECTRIC: Shelves Plan to Sell Real Estate Assets
--------------------------------------------------------
Manila Electric Co. (Meralco) is temporarily shelving its plan
to sell some of its real estate properties this year, the
Philippine Star reported Wednesday, citing Meralco President
Jesus Francisco. Francisco said the sale of any piece of
property anyway would not be sufficient to cover for the
Company's financial requirement for the year.

This year, Meralco needs to pay up some P11 billion worth of
maturing loans, of which P5.5 billion are short-term loans.
Another P6.67 billion is needed for the Phase I and II of the
refund process to be implemented within the year. Last Nov. 15,
the Supreme Court ordered Meralco to refund to its 3.8 million
customers the 16.7 centavos per kwh overcharges from 1994 to
2003.


NATIONAL POWER: Starts Transco Upgrading With Meralco
-----------------------------------------------------
The compromise settlement agreement between the National Power
Corporation (Napocor) and Manila Electric Co. (Meralco) is a
necessary step in order to start the revitalizing and upgrading
of the country's transmission lines, the Philippine Star said on
Wednesday, citing National Transmission Co. (Transco) President
Alan Ortiz.

"The Napocor-Meralco settlement agreement is a breakthrough. It
will allow Meralco to draw from its own independent power
producers (IPPs) at their contracted capacities. Napocor, for
its part, will lower its production from the coal plants. This
will reduce power rates by P0.12 per kilowatt hour," Ortiz said.

The settlement agreement enables Meralco to buy power from its
IPPs - First Gas and Quezon Power - at their contracted levels
of 83 and 86 percent, respectively. This will pave the way for a
lowering of the present rates by P0.12/kwh to Meralco's
consumers. Both Meralco and Napocor, and recently, Transco, have
reiterated that rates will indeed go down by P0.12/kwh.

DebtTraders reports that National Power Corporation's 9.750%
bond due in 2009 (NATP09PHN1) trades between 106.081 and
107.497. For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=NATP09PHN1


NATIONAL STEEL: Government Prepares New Bailout Plan
-----------------------------------------------
The Philippine government is preparing a new bailout package for
National Steel Corporation (NSC), which would involve the
issuance of bonds to raise funds that would be used to buy the
Company's promissory notes from its creditor banks, the
Philippine Star reported on Wednesday.

Sources said the Malacanang is preparing a scheme where the
National Government would completely assume NSC's P16.5-billion
obligation by buying its promissory notes from creditor banks
and using the proceeds of a planned bond offer to bankroll the
bailout. The Philippine National Bank (PNB) was leading the
effort to select the financial advisor and the main question was
whether NSC needed a new rehabilitation plan or to initiate
liquidation proceedings.


NATIONAL STEEL: Awaits Proposal From Two Foreign Consultants
------------------------------------------------------------
Creditors of National Steel Corporation (NSC) are awaiting
proposals from two foreign consultants to help in the financial
recovery of the moribund steel firm, reports the Business World.
Ernst & Young is being considered as the financial adviser for
NSC, but the group has yet to present its proposal to creditors.
The Hatch Group is being considered as technical adviser about
the Company's prospects as well as the local steel industry.

Hatch's business units and affiliates provide consultancy
services to clients in the mining, minerals, metals, industrial
infrastructure and energy sectors. Ernst & Young has offices in
over 140 countries with services on auditing and accounting, tax
compliance and planning, corporate finance, online security,
enterprise risk management, and other critical business-
performance issues, among others.


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


CREATIVE TECHNOLOGY: Swings to S$4.6M Net Profit
------------------------------------------------
Singapore's Creative Technology Ltd. posted a net profit of
S$4.6 million in the fiscal fourth quarter ending in June 30,
compared with a year-ago loss of S$48.4 million, according to
Reuters. The year-ago quarter included a one-time charge related
to the acquisition of 3Dlabs Inc. of $26 million and an
investment loss of $29.8 million.


NEWCALL COMMUNICATIONS: Issues Preferential Dividend Notice
-----------------------------------------------------------
Newcall Communications Singapore Pte Ltd. (In Creditors'
Voluntary Liquidation) issued a notice of intended preferential
dividend under section 328 (1) of the companies act (Chapter 50)

Name of Company: Newcall Communications Singapore
Pte Ltd (In Creditors' Voluntary Liquidation).

Address of former registered office: 9 Temasek Boulevard, #20-03
Suntec Tower Two, Singapore 038989.

Last day for receiving proofs: 16th August 2003.

Name of liquidators: CHEE YOH CHUANG & LIM LEE
MENG.

Address of liquidators: c/o 18 Cross Street #08-01 Marsh &

McLennan Centre Singapore 048423.
Dated this 1st day of August 2003.
CHEE YOH CHUANG
LIM LEE MENG
Liquidators.


OFFICE SHOPPING: Petition to Wind Up Pending
--------------------------------------------
The petition to wind up Office Shopping Network Pte Ltd. is set
for hearing before the High Court of the Republic of Singapore
on August 8, 2003 at 10 o'clock in the morning. Tanakasa Pte.
Ltd., a creditor, whose address is situated at 122 Middle Road,
#08-03 Midlink Plaza, Singapore 188973, filed the petition with
the court on July 16, 2003.

The petitioners' solicitors are Messrs David Siow Chua & Tan, of
No. 133 New Bridge Road, #11-03 Chinatown Point, Singapore
059413. Any person who intends to appear on the hearing of the
petition must serve on or send by post to Messrs David Siow Chua
a notice in writing not later than twelve o'clock noon of the
7th day of August 2003 (the day before the day appointed for the
hearing of the Petition).


PCL TECHNOLOGY: Winding Up Hearing Set August 15
------------------------------------------------
The petition to wind up PCL Technology Pte Ltd. is set for
hearing before the High Court of the Republic of Singapore on
August 15, 2003 at 10 o'clock in the morning. Hewlett-Packard
Singapore (Private) Limited, a creditor, whose address is
situated at 450 Alexandra Road, Singapore 119960, filed the
petition with the court on July 21, 2003.

The petitioners' solicitors are Engelin Teh Practice LLC, of No.
10 Collyer Quay, #23-01 Ocean Building, Singapore 049315. Any
person who intends to appear on the hearing of the petition must
serve on or send by post to Engelin Teh Practice LLC a notice in
writing not later than twelve o'clock noon of the 14th day of
August 2003 (the day before the day appointed for the hearing of
the Petition).


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


GENERAL ENGINEERING: Ups Capital, Issues Shares
-----------------------------------------------
General Engineering Public Company Limited reported a connected
transaction in relation to the debt restructuring plan
negotiated with the company financial auditors under CDRAC.

The Company should increase the capital and allot of newly
issued shares to connected companies.  The details are as
follows:

1. The date on which the  : 60 days from the date of
   shareholders' meeting    transaction occurred

2. The parties involved:

    Name                          Relationship with the company
Shining Route (Thailand) Co.,Ltd.  Shareholder         5.39%
Pattanavasu Co.,Ltd                Major shareholder  18.09%

3. The general characteristics of  the transaction:  Issuance of
new securities

4. Details of the securities involved

        -  Class of securities     : newly issued common share
        -  Number of new securities: 13,000,000 shares
        -  Shining Route (Thailand) Co., Ltd.: 2,000,000 shares
        -  Pattanavasu Co., Ltd.    : 11,000,000 shares
        -  Par Value: Bt2.50
        -  Offering  price per share : Bt2.50

5. The total value of the consideration :

        - Shining Route (Thailand) Co.,Ltd.: Bt5,000,000
        -  Pattanavasu Co., Ltd.: Bt27,500,000

6. Market value of the security issued: Bt2.52 as at May 9, 2002


NATIONAL FERTILIZER: SET Suspends Securities Trading
----------------------------------------------------
The Stock Exchange of Thailand (SET) announced National
Fertilizer Public Company Limited had been subjected to
rehabilitation plan preparation and posted SP (Suspension) sign
to prohibit securities trading of NFC since 6 June 2003 and also
transferred to REHABCO category since 9 June 2003.

The SET also informed a time schedule for NFC's management to
make prudent decision on whether to prepare a rehabilitation
plan to propose to the company's shareholders, or to ask for a
voluntary de-listing, or to attempt rehabilitation under the
Bankruptcy Act, or to try another option which will benefit to
all involved and report the decision to the SET in order to
disclose to public by 7 July 2003.

However, NFC had asked for an extension period to report its
decision by 15 August 2003.

The SET has considered the NFC's management decision submitted
to the SET on 1 August 2003 and will proceed as follows:

   1. Allow trading of NFC securities, which decide to prepare a
rehabilitation plan, under the REHABCO category from 4 August
2003 to 2 September 2003 to give shareholders a chance of
trading NFC's securities. Therefore, according to Clause 24 (3)
and (6) of the regulation on trading, clearing and settlement
for listed securities 1999, the ceiling and floor limits on the
main board will be expanded from the regular +/-30% to +/-100%
of their last trading. The new limits will be in effect on 4
August 2003.

   2. Post an SP sign to prohibit further trading of NFC
securities, beginning from 3 September 2003 until the cause of
delisting is eliminated or the SET allows continued trading
under the REHABCO category after it completed the conditions
specified. This is by virtue of Clause 5 (5) of the SET's rules,
Conditions and Procedure of the Temporary Prohibition against
Trading of Listed Securities dated on 9 February 1995.
NFC is required to proceed as follow:

     1) Appoint a so-called planner, as agreed to in court, to
be the person responsible for preparing the required
rehabilitation plan and act as the company's financial advisor.

     2) Implement the rehabilitation plan approved by its
creditors and the court, in place of the plan approved by the
company's shareholders.

     3) The planner and plan administrator must report to the
SET every six months to the SET on its actual implementation
progress, as compared to the rehabilitation plan until the cause
of possibly being de-listed is eliminated.

The SET would like the NFC's shareholders and general investors
to follow up the progress of NFC.


QUALITY HOUSES: SET Grants Listed Securities
--------------------------------------------
Starting from August 6, 2003 the Stock Exchange of Thailand
(SET) allowed the securities of Quality Houses Public Company
Limited (QH) to be traded on the SET after finishing capital
increase procedures.

    Name                 : QH
    Issued and Paid up Capital
         Old             : Bt5,892,613,880
         Number of common stock: 1,178,522,776 Shares
         New             : Bt5,895,166,320
    Number of common stock 1,179,033,264
    Shares Par value     : Bt5
    Allocate to          : Warrant holders,
    Directors and employees :
             - Warrant No.3  2,200 Units
             - Warrant ESOP 508,029 Units
    Exercise Ratio       : Warrant : Common Stock
             - Warrant No. 3 1:1.00793
             - Warrant ESOP   1:1.00051
    Exercise Price       : Warrant No. 3 Bt5
    Warrant ESOP  Bt5
    Number of common     : Warrant No.3  Bt2,215
    Shares stock from exercise: Warrant ESOP 508,273 Shares
    Exercise Date        : July 21, 2003





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

Troubled Company Reporter -- Asia Pacific is a daily newsletter
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