---

       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

            Tuesday, June 19, 2001, Vol. 4, No. 119


                         Headlines

A U S T R A L I A

BULONG OPERATIONS: Posts Prod Report For April
CENTAUR MINING: S&P Lowers Ratings To `D'
FRANKLINS AUSTRALIA: Sells 53 Stores To Pick'N Pay
HARRIS SCARFE: Sale Likely This Week
HIH INSURANCE: Gov'ts To Assume $2B Of Liabilities
ONE.TEL LIMITED: Directors May Have Hidden Financial State
ONE.TEL LIMITED: French Unit Placed In Receivership


C H I N A   &   H O N G  K O N G

COMCEWOOD DEVELOPMENT: Winding Up Petition To Be Heard
E.V. FOOD: Winding Up Petition To Be Heard
GUANGDONG BUILDING: Files For Removal From ASX List
GUANGDONG KINGMAN: Delisted
HONG KONG CONSTRUCTION: Shares Agreement Made Public
HUNG HSING: Faces Winding Up Petition
NAM FONG: Reaches Agreement With Creditor Re Claims
NETEASE.COM: Talks With I-Cable Terminated
TIANJIN INT'L: Struggles To Repay Bond


I N D O N E S I A

MEDCO ENERGI: Signs Debt Workout Deal With Bahana
RAJA GARUDA: IBRA Creates Three Sub-Obligors


J A P A N

CRAYFISH COMPANY: Q2 Loss Changed To Y782M
KEY TECHNOLOGY: Goes Into Liquidation
TOKYO MUTUAL: Off-The-Book Debt Of Y1.5B Uncovered


K O R E A

DAEWOO CONSTRUCTION: $120M Asset Disposal Scheduled  
HYNIX SEMICON: GDRs Issue Eases Liquidity Pressure
HYUNDAI ENGINEERING: Financing Costs Pay Off Possible
HYUNDAI PETROCHEM: Hanvit Calls For Bailout


M A L A Y S I A

RAHMAN HYDRAULIC: AGM Adjourned
TECHNO ASIA: Will Appoint Directors At AGM
TECHNOLOGY RESOURCES: Debt Solutions Yet To Be Found
ZAITUN BERHAD: Court Postpones Winding Up Hearing


P H I L I P P I N E S

C&P HOMES: Expected To Default Long-Term Debt
PILIPINO TELEPHONE: Cleared Of "Window-Dressing" Charges
TRUST INTERNATIONAL: Seeking Easy Debt Schemes


S I N G A P O R E

BRIERLEY INVESTMENTS: Completes Stake Sale In Tasman
BRIERLEY INVESTMENTS: Tasman Ceases To Be A Subsidiary
POWERMATIC DATA: Subsidiary To Be Liquidated


T H A I L A N D

PROPERTY PERFECT: Lower Net Loss Explained
ROBINSON DEPARTMENT: Court OKs Capital Reduction

     -  -  -  -  -  -  -  -

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


BULONG OPERATIONS: Posts Prod Report For April
----------------------------------------------
Preston Resources Limited, the parent firm of Bulong Operations
Pty Ltd (BOP), announced that the planned maintenance shut down
of Bulong Operations scheduled for March was extended due to
unforeseen maintenance requirements. Production was resumed with
the first commercial harvest on the 10 April.

Performance of the plant for the rest of the month was close to
design.

The company defaulted on the interest payment to noteholders on
June 15, 2000. BOP has been finalizing a restructure of debt and
recapitalization with its lenders.

Nickel production was 557 tons and cobalt production 37 tons.
Operating costs, before cobalt credits were approximately
US$2.85 per pound.

A total of 44,427 tons of leach feed was processed at an average
rate of 69.6 dry tons per hour.

Safety And Environment

There were no lost time injuries during the month.

The quarterly statutory stack emission monitoring was conducted
and all results were below statutory limits.

Production

Principle production statistics for the month of April are shown
in the table below.

April 2001
Actual     Plan       Variance      Variance     Unit
                                    (%)
                                                 Inputs

44,427     45,036       -609        -1.4%      Leach Feed (t)
1.80       1.84         -0.04       -2.4%      Ni Grade (%)
0.13       0.14         -0.01       -8.7%      Co Grade (%)

                                                Outputs

557.27     776          -218.73     -28.2%      Ni (t)
36.79       59          -22.21      -37.6%      Co (l)


YTD

Actual    Plan       Variance      Variance        
                                    (%)
                                               Inputs

345,394    369,206      -23,812     -6.4%     Leach Feed (t)
1.87       1.84         0.03        1.5%      Ni Grade (%)
0.15       0.14         0.01        4.3%      Co Grade (%)

                                               Outputs

5,095.23   6,091        -995.67     -16.3%    Ni (t)
337.02     446          -108.68     -24.4%    Co (l)

Total cobalt production for April was 36.79 tons, 9.25 tons as
cobalt metal and 27.54 tons of cobalt contained in sulfide.

A large percentage of cobalt was shipped as sulfide intermediate
product as high chloride levels resulting from poor crud control
prevented further refining to metal.

Mining

Mine production activities were carried out in the Federal, Gala
and Albion pits with ore and waste mining.

A total movement of 117,166 Bank Cubic Meters (BCM) was achieved
compared to a budget of 119,635 BCM.

Tenders for mining were assessed resulting in BGC Contract
Mining retaining the Mining and Crusher Loading contract for a
further three-year term.

An estimated 8,400 dry ton of material from the Federal pit was
direct hauled to the Run of Mine (ROM) ore pad saving around
$10,000 on re-handling costs.

Slow digging rates were experienced in the Albion 1A pit due to
top loading operations from `goodbye cuts'. Following completion
of mining activities on the pit floor the production fleet re-
located to commence a cutback of the northeastern pit wall.
Topsoil and waste removal continued with production rates in
excess of 7,000 BCM per shift. This is around 40 percent above
base productivity levels.

Mining of bulk waste material from the Albion cutback will
continue during May with relocation to Federal for ore
production around mid month.

Grade control activities comprised trenching in the Federal,
Gala and Albion 1A pits. Grade control estimates of feed
stockpile grades (1.82 percent Ni, 0.15 percent Co) show a very
favorable comparison with the estimation of the autoclave feed
grades (1.83 percent Ni and 0.14 percent Co).

Leach Plant

During April the ore preparation circuit ran for 579 hours,
processing 50,748 dry tons of ore, an average of 88 dry tons per
operating hour. This resulted in 44,427 dry tons being advanced
to pressure leach.

Rejection of logwasher product as scalping screen oversize
averaged 12.5 percent.

The autoclave nickel extraction for April was 91.9 percent
reflecting higher acid injection pump availability. The acid
pumps were operational for 97.8 percent of the 638 hours the
autoclave was operating. This equates to a 2 percent loss in
leach recovery. A total of 44,427 dry tons was processed giving
an average feed rate of 69.6 dry tons per hour.

A total of 95.8 hours production was lost during the month,
which resulted in the leach plant achieving 86.7 % availability
and 86.5 percent utilization.

Unscheduled maintenance accounted for 74.7 hours downtime,
operations accounted for 2.9 hours downtime and heat-up
accounted for 18 hours downtime.

Nickel and cobalt recovery losses from autoclave food to
Pregnant Liquor Storage (PLS) were 20.5 percent and 27.9 percent
respectively. The nickel losses of 20.5 percent can be broken
down as follows:

*  7.9 percent Unleached
*  0.5 percent Neutralization
* 12.1 percent Solution
     *  4.1 percent Refinery
     *  8.0 percent Counter Current Decantation (CCD)

Metallurgical Performance

The table below shows an estimate of the total plant
metallurgical balance.

Overall Plant                    Actual             Optimum
Metal Balance              Nickel      Cobalt   Nickel    Cobalt

Plant Feed Grade (%)        1.80        0.13   1.90       0.13
Plant Inputs (t)           798.1        56.8   889.3       60.8
Plant Recovery (%)          78.9        64.9   92.9       91.6
Plant Stock increase (t)    72.2         0.1   0.0        0.0
product (t)                557.3        36.8   826.1       55.7
Stock Increase &
Product (t)                629.4        36.9   826.1       55.7

Overall Plant
Untilization (%)                  86.5                   88.2

NB: Plant Inputs x Plant Recovery = Plant Stock Increase +
Product
Plant Utilization (%) = Feed Ore (dry tph)actual/Feed Ore (dry
tph) design) x Availability
Availability - Lewa hours/Total hours

Nickel and cobalt head grade accountabilities were 98.0 and 90.7
percent respectively.

Nickel and cobalt recoveries were 78.9 and 64.9 percent
respectively. Nickel recoveries were better than the previous
month, whilst cobalt recovery decreased slightly.

Nickel inventory was very low at the beginning of the month due
to the March shutdown. Nickel inventory subsequently increased
by 72 tons by the end of April. Cobalt inventory did not
significantly alter because the cobalt was sold as cobalt
sulfide due to higher than normal impurity levels.

Refinery

Cobalt solvent extraction (CoSX) averaged 89.86 percent cobalt
recovery. The movement of crud throughout the circuit caused
high entrainments, with loss of cobalt from the strip. The
upgrade of the crud recovery circuit to be commissioned at the
end of May will reduce cobalt losses associated with crud
problems.

Nickel solvent extraction (SX) averaged 94.6 percent nickel
recovery. Due to extensive cleaning of cobalt and nickel SX
during the March shutdown, there were no planned shutdowns for
gypsum cleaning during the month. There was however a need to
clean some of the problem areas on the run in an effort to
maintain flows.

The anode upgrade program continued throughout the month and
although no new anodes were installed the straightening of
buckled anodes continued. It is expected that the replacement
will recommence in May.

Starter stocks at the end of the month were 762. In light of the
extra consumption due to early harvests this also represented a
positive result.

Mining Costs. Total mining area costs for the month were under
budget by 35 percent. The lower activity levels due to single
shift mining compared to the budgeted double shift, is the main
influence on the variance.

Leach Plant Costs. Total costs were 6 percent below budget at
$2,265,400. This equates to a total unit treatment cost of
$51.00 per ton of ore leached compared to a budget of $53.40/t.

Refinery Costs. Labor was $195,000 over budget in April compared
to $259,000 in March. Total refinery staff has been reduced from
91 to 86.

Reagents were $410,000 over budget principally due to
contamination of organic extractants and organic losses.

Maintenance Costs. Costs were lower than expected, taking into
account that a number of shutdown costs were included in this
month. The main reason for this was improved plant reliability
after the shutdown.

Production Services Costs. Production Services is under budget
due mainly to reduced activity levels and outsourcing of
previously internally managed functions.

Commercial Costs. Site Administration costs are over budget by
$41,000. There are no significant variances.

Revenue                                     April-2001
                                            A$'000

Nickel sales                                3,907
Cobalt sales                                  156

Metal Production

Estimates of quarterly metal output, through to March 2002 are
shown in the table below.

Quarter Ending                    Nickel           Cobalt
                                        (in tons)

June 30, 2001                     1,885             105
September 30, 2001                1,750             180
December 31, 2001                 2,105             191
March 31, 2002                    2,007             158

Outlook

High productivity levels have continued into May. Most
components of the plant continue to perform well and the
commissioning of the dedicated diluent wash circuit in Co SX in
the near future and improved crud management should lead to
improved metal quality in coming months. These changes should
also permit more cobalt to be produced as metal (rather than
sulfide intermediate) significantly impacting on revenue.

Information in this report that relates to Mineral Resources or
Ore Reserves is based on information compiled by Lindsay Cahill
who is a Member of the Australian Institute of Mining and
Metallurgy. Lindsay Cahill is a full time employee of Preston
Resources Ltd and has sufficient experience which is relevant to
the style of mineralization and type of deposits under
consideration and to the activity undertaken to qualify as a
competent person as defined in the 1999 Edition of the
"Australasian Code for Reporting of Mineral Resources and Ore
Reserves".


CENTAUR MINING: S&P Lowers Ratings To `D'
----------------------------------------
Standard & Poor's Friday lowered its corporate credit rating on
Centaur Mining & Exploration Ltd., which is in receivership, to
`D' from double-`C'.

In addition, Centaur's rating on its US$225 million senior
secured fixed-rate notes due 2007 has been lowered to `D' from
double-`C', following Centaur's US$12.5 million interest payment
default due to noteholders on June 15, 2001.

"The problems facing Centaur illustrate the need for adequate
cash reserves for start-up projects using unproven technology or
an innovative design," said Mr. Peter Stephens, associate
director, Corporate & Infrastructure Finance Ratings at Standard
& Poor's.

"Like most projects of this nature, Centaur's Cawse nickel
project was tightly financed, relying on cash flows from the
company's existing gold operations and ramp-up production to
meet costs overruns during start-up. Initial cost overruns and
production problems at Cawse, in conjunction with the
underperformance of the company's gold operations, delayed cash
flow and quickly depleted available cash reserves. Centaur's
further attempts to raise additional capital were unsuccessful
and a receiver and manager was appointed in May 2001."

The ratings were lowered progressively to double-`C' and were
again placed on CreditWatch with negative implications on
February 22, 2001, after Centaur failed to replenish its debt
service reserve account relating to its US$225 million senior
secured notes.

The rated notes technically defaulted when Centaur failed to
replenish the debt service reserve account within the 30-day
grace period, and payment default was triggered on June 15,
2001, when interest on the bonds was not paid, Standard & Poor's
said.


FRANKLINS AUSTRALIA: Sells 53 Stores To Pick'N Pay
--------------------------------------------------
Dairy Farm International Holdings Limited announced yesterday
that its wholly-owned Australian subsidiary, Franklins Limited,
has signed a binding agreement to sell 53 stores to Pick'n Pay
Stores Limited of South Africa, subject to certain conditions
including foreign investment protocols.

Under this agreement, Pick'n Pay will acquire 53 stores and the
Franklins' brand and trading names, together with the No Frills
product brand in Australia, for a total cash consideration of
US$52 million (A$101 million).

As of 31 December 2000, the net carrying value of these
stores was US$19 million (A$35 million) and the stores broke
even at operating profit before tax level for the year ended
2000. Pick'n Pay will also acquire associated stock and certain
personnel-related liabilities.

The sale is expected to be completed within six months. The
proceeds will be used to reduce Franklins' debt. The surplus
over carrying value related to this transaction is expected to
be offset by closure and related costs of the managed sell-down
process for the remainder of the
Franklins' store network.

Dairy Farm is a leading food and drugstore retailer in the Asia-
Pacific Region. At 31 December 2000, the Group and its
associates operated over 2,200 outlets, principally
supermarkets, hypermarkets, convenience stores and drugstores,
employed some 79,000 people in nine territories and had sales of
US$6.6 billion in 2000.


HARRIS SCARFE: Sale Likely This Week
------------------------------------
The sale of Harris Scarfe Limited is expected to be completed
before the end of this week, with the sale price ranging from
A$90 million to A$110 million, The Asian Wall Street Journal
reported Friday, citing the Australian Financial Review.


HIH INSURANCE: Gov'ts To Assume $2B Of Liabilities
--------------------------------------------------
The federal and state governments may be pressured to shoulder
liabilities incurred in the downfall of HIH Insurance Limited of
up to $2 billion, ABC News Online reports Friday, citing HIH
Provisional Liquidator Tony McGrath.

McGrath said the Federal taskforce and the state governments
have now become the failed insurer's largest creditors.

"Based upon what we know, the total domestic liability covered
by government schemes is in the range of $1.5 to $2 billion."

"They will certainly get a return from that by way of dividends
and by way of re-insurance recoveries," he added.


ONE.TEL LIMITED: Directors May Have Hidden Financial State
----------------------------------------------------------
Court documents presented by the Australian Securities and
Investments Commission (ASIC) showed that three directors of
One.Tel Limited might have covered up the financial woes of the
insolvent telecommunications firm, long before it was placed
into administration, The Asian Wall Street Journal reports
Friday.

Administrator Ferrier Hodgson intimated the company must have
been insolvent since December 31, 2000 or even before that.

Meanwhile, the Supreme Court of New South Wales in Sydney has
granted ASIC the authority to restrain the assets of One.Tel's
former Joint Chief Executives Jodee Rich, Bradley Keeling, and
Chief Financial Officer Mark Silbermann.


ONE.TEL LIMITED: French Unit Placed In Receivership
---------------------------------------------------
The French subsidiary of failed One.Tel Limited has been placed
under receivership, as ordered by a Nanterre tribunal, La
Tribune reports Thursday.

According to the report, One.Tel France, notwithstanding, will
continue to provide telephony service and Internet access to its
450,000 subscribers. The report also said that a number of
companies have already started takeover negotiations with
One.Tel France.


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


COMCEWOOD DEVELOPMENT: Winding Up Petition To Be Heard
------------------------------------------------------
The petition to wind up Comcewood Development Limited is
scheduled for hearing before the High Court of Hong Kong on July
4, 2001 at 9:30 am. The petition was filed with the court on May
11, 2001 by the Director of Legal Aid, Legal Aid Department,
27th Floor, Queensway Government Offices, 66 Queensway, Hong
Kong.


E.V. FOOD: Winding Up Petition To Be Heard
------------------------------------------
The petition to wind up E.V. Food and Beverage Company Limited
is scheduled to be heard before the High Court of Hong Kong on
June 20, 2001 at 9:30 am. The petition was filed with the court
on April 25, 2001 by Oriental Rivers Limited whose registered
office is situated at Flat 39, 2nd Floor, Tower B, Cambridge
Plaza, 188 San Wan Road, Sheung Shui, New Territories, Hong
Kong.


GUANGDONG BUILDING: Files For Removal From ASX List
---------------------------------------------------
Hi Sun Holdings Limited, formerly Guangdong Building Industries
Limited, has dual primary stock listing in both Australia (since
28 September 1993) and Hong Kong (since 22 December 1997).

The Directors say an application was made 15 June 2001 by Hi Sun
to the Australian Stock Exchange for its removal from the
official list of the Australian Stock Exchange.

A further announcement will be made upon the grant of the formal
approval by the Australian Stock Exchange to the aforesaid
removal of the Company from the official list of the Australian
Stock Exchange.

At present, less than 9 percent of the issued share capital of
Hi Sun is held by shareholders whose holdings are recorded on
the branch share register kept by the Company in Australia. Of
this 9 percent, less than 3 percent are held by persons or
entities who are residents in Australia.

As the capital base of Hi Sun is not large, and trading in its
Shares on the Australian Stock Exchange has not been
particularly liquid, the Directors consider that the cost of
maintaining a dual listing status in Australia is not justified.

It is expected that the ongoing cost to Hi Sun will be
substantially reduced as a consequence of its removal from the
official list of the Australian Stock Exchange.

Further, the costs of complying with the reporting obligations
of two jurisdictions will be reduced, allowing management of Hi
Sun to focus on rebuilding the Company.


GUANGDONG KINGMAN: Delisted
---------------------------
The China Securities Regulatory Commission Friday delisted
Guangdong Kingman Group Company, after rejecting the company's
appeal to be given enough time to make a turnaround in its
business performance, The Asian Wall Street Journal reports
Sunday.

Kingman, a fishery with yuan-denominated Class A shares listing,
has been making losses for three consecutive years, with
accumulated debts of over 1 billion yuan, and was subject to
delisting.

Although, under state regulations, a delisted company is
prohibited from conducting over-the-counter trading, delisted
companies can still apply for the legal transfer of
shareholders' rights, the newspaper reports.

Kingman happens to be second company to be delisted from China's
stock markets since it opened about ten years ago.


HONG KONG CONSTRUCTION: Shares Agreement Made Public
----------------------------------------------------
Hong Kong Construction (Holdings) Limited was informed that on
13 June 2001 China Everbright, Maddington and Shanghai
Construction entered into the Acquisition Agreement under which
Shanghai Construction has conditionally agreed to acquire from
Maddington 114,000,000 Shares at the price of HK$1.66 per Share.
The number of shares represents a premium of approximately 15.28
percent over the closing price of HK$1.44 per Share on 13 June
2001, being the last trading day before the publication of this
announcement.

On the same date, the Company entered into:

(a) the Subscription Agreement with Shanghai Construction under
which Shanghai Construction has conditionally agreed to
subscribe for 35,000,000 new Shares (representing about 5.76
percent of the issued share capital of the Company as enlarged
by the completion of the Subscription and the Placing) at the
price of HK$1.12 per Share; and

(b) the Placing Agreement with BNP Paribas Peregrine Securities
Limited as the Placing Agent pursuant to which the Placing Agent
has conditionally agreed to place 65,000,000 new Shares
(representing about 10.69 percent of the issued share capital of
the Company as enlarged by the completion of the Subscription
and the Placing) with independent Placees at the price of
HK$1.12 per Share on a fully underwritten basis.

The Subscription is treated as a connected transaction for the
Company under Rule 14.03(2)(a)(i) of the Listing Rules and
therefore is subject to the approval of the Independent
Shareholders at the Extraordinary General Meeting. A circular
containing, among other things, further information on the
Subscription, a letter from an independent financial adviser to
the Independent Board Committee, the recommendation of the
Independent Board Committee and a notice of the Extraordinary
General Meeting will be dispatched to the Shareholders as soon
as possible.

Each of the Subscription Agreement and the Placing Agreement
contains force majeure provisions entitling Shanghai
Construction and the Placing Agent to terminate the Subscription
Agreement and the Placing Agreement on the occurrence of certain
events as described in the sub-paragraphs headed "Termination of
the Subscription Agreement" and "Termination of the Placing
Agreement" respectively below. Should such rights be exercised
by Shanghai Construction and/or the Placing Agent (as the case
may be), the Subscription Agreement and/or the Placing Agreement
(as the case may be) would not proceed. Shareholders and
investors are advised to exercise caution in dealing in the
Shares.

Upon completion of the Acquisition Agreement, Shanghai
Construction is expected to nominate additional Directors in
order to obtain control of the majority of the Board.

Trading in the Shares was suspended from 10:00 a.m. on 14 June
2001 at the request of the Company pending the issue of this
announcement and application has been made to the Stock Exchange
for the resumption of trading in the Shares from 10:00 a.m. on
18 June 2001.

A. Acquisition Agreement

The Board was informed by China Everbright that, on 13 June
2001, China Everbright, Maddington and Shanghai Construction
entered into the Acquisition Agreement in the following terms:

Date: 13 June 2001

Vendor: Maddington

Vendor's Guarantor:
China Everbright. As at the date of this announcement and to
best of the knowledge of the Directors, China Everbright
together with its associates (including Maddington) held an
aggregate of 179,007,000 Shares, representing approximately
35.25 percent of the existing issued share capital of the
Company on the basis of 507, 853,996 Shares in issue.

Purchaser:
Shanghai Construction, which is a state-owned enterprise
established in the PRC engaged in the construction business in
the PRC. Shanghai Construction is an independent third party not
connected with any of the directors, substantial shareholders or
chief executives of the Company or any of its subsidiaries or
any of their respective associates. To the best of the knowledge
of the Directors upon the confirmation by or on behalf of
Shanghai Construction and save for the Acquisition and the
Subscription, Shanghai Construction does not directly or
indirectly (whether beneficially or through a nominee) have any
interest in any Shares and it did not deal in the Shares during
the previous six months.

Shanghai Construction and its subsidiaries have been the sub-
contractors for a number of projects for the Company in Hong
Kong and the PRC.

Number of Shares to be acquired by Shanghai Construction:
An aggregate of 114,000,000 Shares will be acquired from
Maddington, representing (i) about 22.45% of the existing issued
share capital of the Company and (ii) about 18.75% of the issued
share capital of the Company as enlarged by the completion of
the Placing and the Subscription.

Acquisition Price:
HK$1.66 per Acquisition Share, representing (i) a premium of
approximately 15.28 percent over the closing price of HK$1.44
per Share on the Last Trading Day and (ii) a premium of
approximately 14.33 percent and 17.90 percent over the average
closing prices of approximately HK$1.452 and HK$1.408 per Share
of the last five and ten trading days respectively up to and
including the Last Trading Day as quoted by the Stock Exchange.

Conditions and completion of the Acquisition:
Completion of the Acquisition is conditional on the following
conditions being fulfilled and remaining fulfilled or waived by
Shanghai Construction and Maddington as at completion of the
Acquisition Agreement:

   (a) the Executive confirming that neither Shanghai
Construction nor Maddington or any parties acting in concert
(within the meaning of the Code) with any of them will be
required to make a general offer pursuant to Rule 26 of the Code
in respect of all the issued Shares (other than the Acquisition
Shares) as a result of completion of the Acquisition Agreement;
and

   (b) all PRC states, governmental or regulatory
authorizations, permissions, filings and approvals (including
PRC foreign exchange and remittance approval) necessary for or
in connection with the transactions contemplated under the
Acquisition Agreement having been obtained or made by Shanghai
Construction.

The Acquisition is expected to be completed on or before 2:00
p.m. on 6 July 2001 or on such other date as may be agreed
between Maddington and Shanghai Construction in writing.

In the event that not all the above conditions are fulfilled or
waived as aforesaid five business days before the completion
date of the Acquisition Agreement (or such later date as the
parties thereto may agree in writing), the Acquisition Agreement
will lapse.

In the event that condition (a) above is waived by Shanghai
Construction and Maddington and the parties proceed to
completion of the Acquisition Agreement, there may or may not be
a general offer obligation under the Code.

The Disposal:

China Everbright has undertaken to procure the sale to persons
who, to the best of the knowledge of China Everbright, are
independent of and do not act in concert with China Everbright,
Maddington or Shanghai Construction or their respective concert
parties, on or before the date of completion of the Acquisition
Agreement, of 3,000,000 Shares (other than the Acquisition
Shares) held by Maddington, representing approximately 0.59% of
the existing issued share capital of the Company.

B. Subscription Agreement

Date: 13 June 2001

Issuer: Hong Kong Construction (Holdings) Limited

Subscriber: Shanghai Construction

Number of Shares to be subscribed:
35,000,000 new Shares, representing (i) about 6.89 percent of
the existing issued share capital of the Company and (ii) about
5.76 percent of the issued share capital of the Company as
enlarged by the completion of the Placing and the Subscription.

Subscription Price:
HK$1.12 per Subscription Share, representing (i) a discount of
approximately 22.22 percent to the closing price of HK$1.44 per
Share on the Last Trading Day and (ii) a discount of
approximately 22.87 percent and 20.45 percent to the average
closing prices of approximately HK$1.452 and HK$1.408 per Share
of the last five and ten trading days respectively up to and
including the Last Trading Day as quoted by the Stock Exchange.

As the Group is currently under financial restructuring, the
Board considers that it is difficult to raise any funding from
the equity market through placement of new Shares, without
offering a higher than usual discount to the market price of the
Shares. The Company, with a view to exercising the general
mandate to issue Shares granted by the Shareholders on 22 June
2000, decided to place up to 100 million new Shares. After arm's
length negotiations between the Company and the Placing Agent,
it has been agreed by the Placing Agent that the Placing Agent
would place up to 65 million new Shares at the price of HK$1.12
per Share on a fully underwritten basis. After lengthy
negotiations between the Company and Shanghai Construction on
the terms of the Subscription Agreement (including the
Subscription Price), Shanghai Construction agreed to take up the
remaining balance of 35 million new Shares at the same price as
the Placing Price.

The Board considers that the terms of the Subscription Agreement
(including the Subscription Price) are fair and reasonable and
are in the best interests of the Company and its Shareholders as
a whole.

Conditions and completion of the Subscription:
Completion of the Subscription is conditional on the fulfillment
of the following conditions on or before 5:00 p.m. on 31 July
2001 (or such later date as may be agreed between the Company
and Shanghai Construction in writing):

   (a) the approval of the listing of, and permission to deal
in, all the Subscription Shares being granted by the Listing
Committee of the Stock Exchange;

   (b) such listing approval not being subsequently revoked or
suspended at or before 9:30 a.m. on the completion date of the
Subscription Agreement;

   (c) the Placing Agreement becoming unconditional and not
being terminated in accordance with its terms and conditions;

   (d) all PRC states, governmental or regulatory
authorizations, permissions, filings and approvals (including
PRC foreign exchange and remittance approval) necessary for or
in connection with the transactions contemplated under the
Subscription Agreement having been obtained or made by Shanghai
Construction; and

   (e) the passing by the Independent Shareholders in the
Extraordinary General Meeting of ordinary resolution(s)
approving the Subscription Agreement and the transactions
contemplated thereunder.

Subject to the fulfillment of all these conditions and the
Placing Agreement being completed not later than the completion
of the Subscription Agreement, the Subscription shall be
completed on the third business day after the date of
fulfillment of all the above conditions (or such later date as
may be agreed between the Company and Shanghai Construction in
writing).

Completion of the Subscription Agreement is not conditional on
the completion of the Acquisition Agreement.

It is expected that the Subscription Agreement will be completed
on or before 31 July 2001.

Termination of the Subscription Agreement:
The Subscription Agreement contains force majeure provisions
entitling Shanghai Construction to terminate its subscription
obligations thereunder on the occurrence of certain events
(including any material adverse change in the local or
international political, economic or market conditions) prior to
5:00 p.m. on the business day immediately preceding the date of
completion of the Subscription Agreement. If Shanghai
Construction exercises such rights to so terminate the
Subscription Agreement, the Subscription will not proceed.
Shareholders and investors are therefore advised to exercise
caution in dealing in the Shares.

C. Placing Agreement

Date: 13 June 2001

Issuer: Hong Kong Construction (Holdings) Limited

Placing Agent:
BNP Paribas Peregrine Securities Limited, which is an
independent third party not connected with any of the directors,
substantial shareholders or chief executives of the Company or
any of its subsidiaries or their respective associates. The
Placing Agent has agreed to place the Placing Shares as agent
for the Company by way of private placing to the Placees on a
fully underwritten basis.

Placees and their independence:
The Placing Shares will be placed with the Placees (which will
be more than six in number) who will be parties independent of
and not connected with or acting in concert with any of the
directors, substantial shareholders or chief executives of the
Company or Shanghai Construction or any of their respective
subsidiaries or any of their respective associates. It is not
expected that any Placee will become a substantial shareholder
of the Company as a result of the Placing.

Number of Shares to be placed:
65,000,000 new Shares, representing (i) about 12.80 percent of
the existing issued share capital of the Company and (ii) about
10.69 percent of the issued share capital of the Company as
enlarged by the completion of the Placing and the Subscription.

Placing Price:
HK$1.12 per Placing Share, which is the same as the Subscription
Price. The terms of the Placing Agreement (including the Placing
Price) were arrived at after arm's length negotiations with the
Placing Agent and the Board considers that they are fair and
reasonable and are in the best interests of the Company and its
Shareholders as a whole.

Conditions and completion of the Placing:
Completion of the Placing is conditional on the fulfillment of
the following conditions on or before 5:00 p.m. on 6 July 2001
(or such later date as may be agreed between the Company and the
Placing Agent in writing):

   (a) the approval of the listing of, and permission to deal
in, all the Placing Shares being granted by the Listing
Committee of the Stock Exchange; and

   (b) such listing approval not being subsequently revoked or
suspended at or before 9:30 a.m. on the completion date of the
Placing Agreement.

The Company shall as soon as possible give a written notice to
the Placing Agent of the fulfillment of the condition in
paragraph (a). The Placing shall be completed on the third
business day after the date of such notice (or such other date
as may be agreed between the Company and the Placing Agent). It
is expected that the Placing will be completed on or before 6
July 2001.

Completion of the Placing Agreement is not conditional on the
completion of the Acquisition Agreement.

Termination of the Placing Agreement:
The Placing Agreement contains force majeure provisions
entitling the Placing Agent to terminate its underwriting
obligations thereunder on the occurrence of certain events
(including any material adverse change in the local or
international political, economic or market conditions) prior to
9:30 a.m. on the date of completion of the Placing Agreement. If
the Placing Agent exercises such rights to so terminate the
Placing Agreement, the Placing will not proceed. Shareholders
and investors are therefore advised to exercise caution in
dealing in the Shares.

D. General

General Mandate:
The Placing Shares and the Subscription Shares will be issued
pursuant to the general mandate to issue new Shares granted to
the Directors at the annual general meeting of the Company held
on 22 June 2000. The Company has not exercised or agreed to
exercise the power to allot and issue any new Shares pursuant to
such mandate prior to the Placing and the Subscription.

Ranking of the Placing Shares and the Subscription Shares:
The Placing Shares and the Subscription Shares will, at
completion, rank pari passu in all respects with the Shares for
the time being in issue.

Impact on shareholdings:
The impact of the Acquisition, Placing and Subscription on the
shareholdings of China Everbright, being the only substantial
shareholder of the Company as at the date of this announcement,
and Shanghai Construction and their respective associates in the
Company, is expected to be as follows:

Notes:

1. Immediately after the Disposal, the total number of Shares
held by China Everbright and its associates is expected to be
reduced from 179,007,000 Shares to 176,007,000 Shares.

2. Assuming that other than the Placing Shares and the
Subscription Shares, no new Shares will be issued or purchased
by the Company after the date of this announcement up to the
Disposal and the respective dates of the completion of the
Acquisition, Placing and Subscription.

Reasons for the Placing and Subscription and use of net
proceeds:
The Board considers that the Placing and Subscription will
enlarge the base of the Shareholders and strengthen the
financial position of the Company and, for the reasons stated
above, they are in the best interests of the Company and the
Shareholders.

It is presently intended that the net proceeds of the Placing
and Subscription of about HK$108 million will be used as to
approximately HK$40 million for repayment of debts and the
remaining balance of approximately HK$68 million as general
working capital of the Group.

Application for listing:
Application will be made to the Listing Committee of the Stock
Exchange for the listing of, and permission to deal in, the
Placing Shares and the Subscription Shares.

Connected Transaction and Extraordinary General Meeting:

The Subscription is treated as a connected transaction for the
Company under Rule 14.03(2)(a)(i) of the Listing Rules and
therefore is subject to the approval of the Shareholders (other
than China Everbright and Shanghai Construction (subject to
completion of the Acquisition Agreement) and their respective
associates, who will abstain from voting) at the Extraordinary
General Meeting, which will be convened as soon as possible. The
Independent Board Committee will be appointed to advise the
Independent Shareholders in respect of the Subscription and an
independent financial adviser will be appointed to advise the
Independent Board Committee.

A circular containing, among other things, further information
on the Subscription, a letter from an independent financial
adviser to the Independent Board Committee, the recommendation
of the Independent Board Committee and a notice of the
Extraordinary General Meeting will be dispatched to the
Shareholders as soon as possible.

Possible change in composition of the Board:
The Board is currently made up of 12 Directors, comprising 9
executive Directors and 1 non-executive Director and 2
independent non-executive Directors.

The Board is further informed that, pursuant to the Acquisition
Agreement, certain existing Directors (the number and identities
of whom have not yet been determined) will resign and Shanghai
Construction is expected to nominate additional Directors (the
number and identities of whom have not yet been determined) to
the Board in order to control the majority of the Board.

Principal activities of the Company:
The principal activities of the Company are construction and
property development/investment.

Suspension and resumption of trading:
Trading in the Shares was suspended from 10:00 a.m. on 14 June
2001 at the request of the Company pending the issue of this
announcement and application has been made to the Stock Exchange
for the resumption of trading in the Shares from 10:00 a.m. on
18 June 2001.


HUNG HSING: Faces Winding Up Petition
-------------------------------------
The petition to wind up Hung Hsing (H.K) Industrial Co. Limited
is set for hearing before the High Court of Hong Kong on July
25, 2001 at 9:30 am. The petition was filed with the court on
April 28, 2001 by The Kwangtung Provincial Bank Limited of 1st-
3rd Floors, Euro Trade Centre, 13-14 Connaught Road Central,
Hong Kong.


NAM FONG: Reaches Agreement With Creditor Re Claims
---------------------------------------------------
Pursuant to the announcement made Nam Fong International
Holdings Limited on 11 May 2001 regarding a lawsuit against the
Company for the claim of HK$18.21 million by a creditor, the
Company has reached a mutual consensus with the creditor by
signing a consent order.

The relevant writ of summons was served to the Company on 14 May
2001 and an extension of 21 days has been granted by the Court
to the Company to file and serve the Defense to the summons.

The Company has now reached a mutual consensus with the creditor
by entering into a legal binding consent order, according to
which the Company agrees to pay the interest of HK$1.5 million
upon the signing of the consent order and the loan principal of
HK$18.21 million plus interest of HK$0.82 million will be
settled by three installments payable in July, August and
September 2001.

In the event the Company is unable to settle the repayment in
accordance with the terms of the consent order, the creditor is
entitled to demand immediate repayment of the whole outstanding
sum.

The Company intends to make the repayment with proceeds from the
Group's rental income and sales of non-core property assets,
cash and available banking facilities.

Having considered that the Group derives a stable recurring
income from its rental operations, the board of directors of the
Company believes that there will be no material adverse impact
on the financial position of the Company. Further announcement
will be made by the Company to inform its shareholders of any
material developments on the above proceedings.

Shareholders and investors should exercise extreme caution when
dealing in the shares of the Company.


NETEASE.COM: Talks With I-Cable Terminated
------------------------------------------
The board of directors of i-CABLE Communications Limited said
that its discussion with Netease and some of its shareholders
has been terminated. There was a prior announcement on 8 June
2001 issued by the Company in relation to its confidential
discussion with Netease.com, Inc. (Netease) and some of its
shareholders for the Company's proposed acquisition of Netease.  

Accordingly, the Company will not proceed with the proposed
acquisition for the time being.


TIANJIN INT'L: Struggles To Repay Bond
--------------------------------------
Tianjin International Trust & Investment Company (Tianjin ITIC)
is struggling to meet coupon payment of 148 million yuan on
five-year bond worth 12.5 billion yuan, as a result of the
failure of state-run firms to make repayment on loans, The Asian
Wall Street Journal reports Friday.

Jin Baoxin of Tianjin ITIC said that the company is still in the
process of obtaining enough cash to meet the latest of its semi-
annual obligation, although it can't be sure the company can
raise the amount within the 14-day grace period ending June 27,
the newspaper says.

Jin was quoted as saying, "Apparently the situation this year is
worse than last year. We gave out loans to many state-owned
enterprises and now we can't get (the money) back."

Last year, Tianjin ITIC made the coupon payment on the 2001 bond
on the default deadline. Because of it, Japan's Rating &
Investment Information Inc. downgraded Tianjin ITIC's note to
CCC+ from B-, said to be the lowest rating for a bond that has
yet to officially default.


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


MEDCO ENERGI: Signs Debt Workout Deal With Bahana
-------------------------------------------------
President Director of Medco Energi International Hilmo Panigoro
has revealed that on June 8, 2001, Medco and Bahana Pembinaan
Usaha Indonesia signed a debt restructuring agreement,
IndoExchange reported Monday.

Under the agreement, the interest will be set at 10 percent for
dollar-denominated debt and 20 percent for rupiah-denominated
debt, the report says. However, both parties opted not to
disclose the mature and grace periods for the debt repayment.

Medco, in 1998, made cash payments of US$22 million and Rp2
billion on its debts owed to Bahana, which results in a total of
$65 million and Rp110 billion in principal and interest that was
rescheduled, under the debt restructuring agreement.

Hilmo said Medco's liability to foreign creditors has also been
restructured.

Medco's debt, including that owed to foreign creditors, now
stands at $700 million, while its debt owed to IBRA now amounts
to nearly $24 million.


RAJA GARUDA: IBRA Creates Three Sub-Obligors
--------------------------------------------
In bid to accelerate the handling of debt restructuring of
Obligor Raja Garuda Mas Grup (RGM), the Indonesian Bank
Restructuring Agency (IBRA) has divided the 12 subsidiary
companies under RGM into 3 sub-obligors.

The three sub-obligors consist of Riau Complex, Non Riau Complex
and Inti Indorayon Utama.

In the following are explanations about each obligor:

1. Sub-obligor Riau Complex:

IBRA is a minor creditor with 22 percent of total debt of Riau
Complek of US$1.3 billion or US$286 million. As a result, a
decision by IBRA will not serve as the benchmark. Meanwhile the
restructuring of Riau Complex is mediated through the Jakarta
Initiative with all corresponding requirements and conditions
for restructuring have been approved by FSPC.

The requirements include implementation of debt restructuring
scheme as agreed by majority creditors.

Debtor Name Total Outstanding
PT Riau Andalan Pul & Paper US$30.797.469
PT Riau Andalan Kertas US$76.214.061
PT Riau Prima Energi US$179.066.429

There are at least five reasons of commercial viability of
restructuring of Riau Complex especially in term of pricing and
format. First, the debt principal can be paid by installments
within 6 years or expected to be paid up by 2005. Second, there
is no writeoff on interest arrears.

Third, interest rate is about 3.5 percent above average three-
month time deposit average or deposit interest rate plus 3.5
percent per annum.

Fourth, deferment of interest for a maximum of 18 months and
interest is still surcharged on the deferred interest.

Fifth, excess cash sweep mechanism is implemented in
anticipation of possible excess cash availability for payment
acceleration.

The restructuring chronology of sub-obligor Riau Complex is as
follows:

Three debtos: Riau Andalan Pulp & Paper, Riau Andalan Kertas and
Riau Prima Energi grouped under sub-obligor Riau Complex have
signed agreement with local creditors including IBRA on 30 June
2000.

The restructuring scheme implements rescheduling of all
obligations within a maximum of 6 years plus 2 years for Forex
Loss portion without any discount on both the principal and
interest.

The debtor has paid its obligation in conformity to the
Restructuring Ageement of Riau Complex from 1 September 1999 to
January 2001.

Since end of January 2001 the debtor has raised request to the
creditor for payment dispensation in line with the debtor's cash
flow condition. Dispensation in request include decrease in
interest rate and deferment of principal payment which is
already overdue or will be in due time.

The debtor's inability to meet its obligation in full has made
its debtor status under-performance because since 1 February
2001, the debtor can only pay a portion of the interest
obligation.

In addition to current interest rate payment, as from March 2001
the debitur should have paid the installment which falls mature
in every quarter.

However, the debtor suffers from cash shortage due drop in pulp
price which -- based on assumption by financial consultant
Deloitte Touche Tohmatsu (DTT)-- is expected to reach above
US$500 per ton to as low as US$320 per ton in early April 2001.
Due to this condition, the debtor cannot meet its obligation in
full.

Based on such reasons, the debtor has officially requested the
creditors to agree with the proposed adjustments including:

Deferment of principal payment, interest arrear, the deferred
interest payment which is due 26 March 2001.

The fixed interest rate on the principal and deferred interest
is set at 6% per annum based on the pulp price of US$400 per
metric ton.

There is no interest charged on Forex Loss and Interest Arrear.

Interest rate on working capital is set at that of three-month
time deposit plus 1 percent per annum. The time deposit interest
rate is based on the average interest rate of 6 (six) banks
namelu Bank Danamon, Mandiri, Niaga, Panin, Universal and Bank
Negara Indonesia (BNI).

However, majority of the Riau Complex syndication have not yet
agreed with the debtor's proposal because the requested price
does not match the cost of fund conditions of the Riau Complex
syndication participants.

Up to this moment, a series of intensive discussions is going
on. And the creditors expect that in the end the agreement is
not much different from the previous restructuring scheme.

2. Sub-obligor Non Riau Complex

Eight companies grouped under the sub-obligor Non Riau Complex
have signed Memorandum of Understanding on 15 December 2000 with
the following restructuring scheme:

Debtor Name Total Outstanding     Restructuring Scheme
PT Raja Garuda Mas Lestari US$ 1.449.600   Debt Transfer to PT
Asia Forestama Raya (AFR) and debt rescheduling within 7-10
years

PT Asia Forestama Raya   US$ 3.258.821  Rescheduling within 7-10
years

PT Inter Benua Medan Perkasa  US$ 1.428.571   Debt rescheduling
within 3 years 9 months

PT Sola Gratia US$ 25.950.000   30 percent rescheduled within
8-10 years and the remaining 70 percent in convertible bonds

PT Mitra Unggul Pusaka   US$7.634.219    Rescheduling within 6
years

PT Raja Garuda Mas Sejati US$ 1.114.794   Rescheduling within
6 years

PT Unimegah Utama Raya US$ 3.116.588   Rescheduling within
10 years

The restructuring scheme will be accepted by IBRA if all debtors
have paid 20 percent of total interest arrear before signing the
Resctructuring Agreement.

This condition has been fulfilled by almost all debtors. IBRA is
currently preparing the Restructuring Agreement to be completed
in June 2001.

3. Sub-obligor Inti Indorayon Utama.

IBRA is a minority creditor with a portion of only 3.8 percent
of total debt US$359.3 million or US$13,747,304.

The restructuring process if mediated through the Jakarta
Initiative and is still faced with technical constraints. In
addition, the debtors still await the company to resume its
operation. As a result, the most viable restructuring scheme is
still under negotiation.

This problem will be too difficult for the debtor itself so that
the government should provide the guideline for finding out the
best solution on this problem.

The debtors have won a permit from the government to resume its
operation, especially for pulp production, while the rayon
production is still disallowed.

However, because local people still resist against the
operational resumption the governmental permit cannot be
implemented by the debtor.


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


CRAYFISH COMPANY: Q2 Loss Changed To Y782M
------------------------------------------
Crayfish Company has changed its reported loss for the second
quarter to Y782 million from Y589 million, The Asian Wall Street
Journal reports Friday.

The revision was made on the determination that Crayfish would
not likely retrieve its investment in MCC Holdings Limited
(MCCH), equivalent to 60 percent stakeholding in MCCH, the
report says, citing a company statement.

After a re-evaluation of MCC Holdings' financial state, Crayfish
resolved to book a loss of Y194 million, accounting for the
devaluation of the securities of MCCH, the newspaper says.


KEY TECHNOLOGY: Goes Into Liquidation
-------------------------------------
Loss-making Japan Key Technology Center will be liquidated in
two years, after the Diet, through a House of Councilors plenary
session, passed the bill Friday, Japan Times Online reports
yesterday.

With the bill's passage, the New Energy and Industrial
Technology Development Organization (NEDO) and the
Telecommunications Advancement Organization will take over the
operations of the public corporation.

According to the report, the center was founded in 1985 with the
objective of promoting research and studies of key technologies.


TOKYO MUTUAL: Off-The-Book Debt Of Y1.5B Uncovered
--------------------------------------------------
Bankrupt insurer Tokyo Mutual Life Insurance Company has an off-
the-book debt of Y1.5 billion as a result of its acquisition of
a piece of land in Hachioji, Tokyo via construction firm Taisei
Corporation, Yomiuri Shimbun reports yesterday.

The acquisition was made in 1991 by the construction company on
behalf of the failed second-tier insurer to evade controls of
the Finance Ministry on speculative land transactions, the
report says.

Moreover, Tokyo Mutual bought the land from Taisei in 1997,
under an agreement that Taisei would pay Y1.5 billion, which was
to cover the discrepancy between the amount Taisei paid to
acquire the land and the sum to buy the property from the
Taisei. The sum was not recorded in the insurer's financial
reports.

Tokyo Mutual filed for court protection with the Tokyo District
Court in March. In May, Taisei took legal action against the
insurer, with claims of Y1.5 billion which the construction firm
alleges has remained unpaid.

An official at Tokyo Mutual Life said, "We planned to gradually
pay off our debts, having contracts for constructing buildings
with Taisei. We had little intention of keeping an off-the-book
debt."


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


DAEWOO CONSTRUCTION: $120M Asset Disposal Scheduled  
---------------------------------------------------
Daewoo Construction Company is expected to dispose this month of
its three real estate assets in Eastern Europe, valued at $120
million, The Asian Wall Street Journal reported yesterday,
citing an official at the Korea Asset Management Corporation
(Kamco), which has approved of the proposed sale.

The three assets include a hotel and an office building in
Bulgaria, and an office building in Poland.

The sale of the assets is part of the debt workout for Daewoo
Construction.


HYNIX SEMICON: GDRs Issue Eases Liquidity Pressure
--------------------------------------------------
The issuance of global depository receipts (GDRs) worth $1.25
billion, despite the downturn in the semiconductor market, was
expected to ease the liquidity pressure for the ailing chipmaker
Hynix Semiconductor, The Asian Wall Street Journal reported
yesterday, citing industry analysts.

The GDRs were issued at $12 apiece, with 24 percent discount
over the local share price. Hynix, moreover, has issued a total
of 104,165,000 GDRs, equivalent to 520,825,000 of its common
shares in an offering to both Korean and international
investors.

These GDRs will likely be traded on the Luxembourg Stock
Exchange starting June 21.

According to lead-manager Salomon Smith Barney (SSB), there's an
overallotment option to issue additional GDRs, comprising 15
percent of the $1.25-billion issued GDRs, but only if more
investors would surface within 30 days from pricing. When
realized, this additional issuance may earn for Hynix as much as
$1.44 billion in new investments.

Meanwhile, in a report by The Digital Chosun Monday, the
company's TFT-LCD unit will be bought by a consortium of Taiwan
and Chinese companies for as much as $500 million.

The expected infused investment will reach W3.36 trillion within
a month's time, about 30 percent of the company's total debts.

However, market analysts cannot conclude Hynix's financial woes
will be over based on the expected success of the GDR issue, The
Digital Chosun reports.

Choi Suk-po, chief researcher of Meritz Securities, was quoted
as saying, "The chance for survival for Hynix has indeed
increased since it successfully issued GDRs, but the ultimate
fate of the company is still dependent on how soon the
semiconductor industry will recover from the current slump."


HYUNDAI ENGINEERING: Financing Costs Pay Off Possible
-----------------------------------------------------
Hyundai Engineering and Construction Company (HDEC) will likely
be able to meet its debt service with its operating income for
the current year, but only if the plan for debt-for-equity swap
is implemented and new loans are granted, The Digital Chosun
reported yesterday, citing ADL, the management consultant of the
ailing builder.

According to ADL estimates, HDEC's debt coverage ratio will
surge by twice as much as its total debt service for the year.
In addition, the company's debt service ratio will reach to 2.7
times next year, and 5.3 times in 2003, as opposed to an April
projection of 1.49 and 2.2 for 2001 and 2002 respectively.

However, an official at the Korean Exchange Bank told Chosun
that the report would not affect changes in the bank's
restructuring plan for HDEC, adding that ADL's current estimates
bore no major differences from the projections reported in
April.


HYUNDAI PETROCHEM: Hanvit Calls For Bailout
-------------------------------------------
Hanvit Bank, the biggest creditor of Hyundai Petrochemical
Company, is urging the company's two biggest shareholders,  
Hyundai Heavy Industries (HHI) and Hyundai Motor, to provide
bailout funds to the company, The Korea Herald reported
yesterday.

Hanvit President Lee Deok-hoon offered the two shareholders two
options -- either bankroll the petrochemical firm, or surrender
their managerial rights.

HHI owns 49.9 percent, while Hyundai Motor holds a 15 percent
stake in the petrochemical company.

HHI, has no intentions of supporting Hyundai Petrochemical
financially, as it is considering selling its stake in its
sister firm.


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


RAHMAN HYDRAULIC: AGM Adjourned
-------------------------------
The Special Administrators of Rahman Hydraulic Tin Berhad (RHTB)
announced the Eighty Sixth Annual General Meeting (AGM) of the
Company was adjourned until further notice following an
adjournment proposal voted on and carried by the Members present
at the Meeting immediately upon commencement of the AGM.

No business as set out in the Notice of AGM was transacted.

Background

Special Administrators (SA) were appointed to the Company (RHTB)
on 16 June 2000 pursuant to Section 24 of the Pengurusan
Danaharta Bhd Act 1998.

On 27 September 2000, a Heads of Agreement was entered into with
Speed Operations Sdn Bhd, an agent of the vendor of White Knight
Companies, for a restructuring of RHTB which will result in the
vendors becoming RHTB's substantial shareholders.

The proposed White Knight Companies to be injected by the
vendors are Metronic Engineering Sdn Bhd, Skymech Automation Sdn
Bhd and its subsidiaries, Metro Health Sdn Bhd, MH Medic Sdn
Bhd, and the Esquetech Group of Companies. The SA are presently
formulating a workout proposal with Speed Operations.

Currently also, there is an injunction against the Directors of
the Company which was brought about through a legal action taken
by one of the shareholders of the Company.

The Company meanwhile continues with its tin mining operations
in Perak, property development at Taman Kempas, Sungei Petani,
rubber gloves manufacturing, and rubber and oil palm plantation.

Since its formation, RHTB has been in the business of tin ore
extraction from mining leases located in Klian Intan, Perak.
RHTB widened its earnings base in 1970 via purchase of rubber
plantation Ladang Pinang Tunggal. The rubber gloves
manufacturing business which produces mainly latex examination
gloves for both export and the local market, commenced business
in 1988. The factory is located near Batu Caves, Selangor.

In 1990, RHTB added property development to its portfolio.


TECHNO ASIA: Will Appoint Directors At AGM
------------------------------------------
Techno Asia Holdings Berhad say the following additional Agenda
will be transacted at the Annual General Meeting announced on 30
May 2001:

Subsequent to the issuance of the notice of Annual General
Meeting, the Company received letters from two members
nominating Encik Alam Shah Bin Abdul Rahman, Cik Susana Binti Ab
Rahman, Lim Heng Piew, Encik Ishak Bin Ismail, Encik Roslan Bin
Soib, Encik Hazlan Bin Hashim and Kong Fui Kien @ Patrick Kong
for appointment as Directors of the Company at the forthcoming
Thirty Second Annual General Meeting to be held on 28 June 2001.

Furthermore, the following additional resolutions will be tabled
at the Thirty Second Annual General Meeting for consideration:

Resolution No. 6: To appoint Encik Alam Shah Bin Abdul Rahman as
Director.
Resolution No. 7: To appoint Cik Susana Binti Ab Rahman as
Director.
Resolution No. 8: To appoint Mr Lim Heng Piew as Director.
Resolution No. 9: To appoint Encik Ishak Bin Ismail as Director.
Resolution No. 10: To appoint Encik Roslan Bin Soib as Director.
Resolution No. 11: To appoint Encik Hazlan Bin Hashim as
Director.
Resolution No. 12: To appoint Mr Kong Fui Kien @ Patrick Kong as
Director.

Profile

The Company carried on the business of cultivating and
processing oil palm in its early days, under the name of Central
Oil Palm Industries Sdn Bhd. The Company later evolved into an
investment holding company with subsidiaries involved in
property development, investment holding, oil palm plantations,
power generation and hotel operations.

The Company changed its name to Techno Asia Holdings to better
reflect its current activities and business as an investment
holding company with diversified business.

The oil palm operations are based in Teluk Intan, Perak and
Lahad Datu, Sabah. The main property development activity is in
the 1,276-acre Taman Mount Austin in Johor Bahru comprising
light industrial, commercial and residential development.

Overseas, the Company is involved in the supply of electricity
to Mombasa in Kenya, Ecuador, Bangladesh and Dominican Republic.

In July 2000, the Company appointed a merchant bank as adviser
to a proposed restructuring exercise which is presently still
under discussion.

In September 2000, the Company received a requisition from 11
shareholders to convene an EGM to remove 5 of the directors
pursuant to the powers conferred by Section 144(3) of the
Companies Act 1965. Following an EGM on 21 November 2000, the
directors were removed and six new directors were appointed.


TECHNOLOGY RESOURCES: Debt Solutions Yet To Be Found
----------------------------------------------------
Technology Resources Industries Berhad says the company is still
evaluating various options to address the Group's financial
commitments and obligations. To date, the Board of Directors has
yet to decide on the final option.

Background

Originally active in the manufacture and sale of electrical
equipment, the Company (TRI), began its technical agreement with
Sharp Corporation of Japan in 1970 to manufacture "Sharp" brand
products in JV with Sharp Japan, Trusmadi Sdn Bhd and the Roxy
Group of Companies.

The Company diversified into banking and property development
and transferred its manufacturing business to a new company,
Sharp-Roxy Appliances, in 1985.

In 1989, a substantial part of its banking investment was
disposed of, whereas the property interests were expanded. The
former was subsequently completely divested in 1991, whereupon
the manufacturing activities were consolidated and three main
areas of focus emerged: transportation, telecommunication and
tourism.

Two years later, in 1993, the Group made a strategic move to
focus operations in the telecommunication industry through the
acquisition of Cellular Communications Network (Malaysia) Sdn
Bhd (Celcom), the first private operator involved in cellular
telecommunication besides Telekom Malaysia Bhd. Entry into the
international telecommunications scene followed via JVs and
other arrangements with companies in Cambodia, China, Tanzania,
Bangladesh and Canada.

In June 1995, Celcom's existing trunk transmission license was
amended to become a full domestic transmission license which
enables it to offer public switched telephone network services
and carry end-to-end transmission whether by fiber optics,
microwave satellite or VSAT technology.

With its international gateway license, which started operations
in November 1993, TRI now offers the full range of
telecommunication services, from mobile cellular to transmission
and fixed line services to international gateway services.

Also in 1995, Celcom signed a fiber optic joint development
agreement with Tenaga Nasional Bhd (TNB) and Malaysian Resources
Corporation Bhd, enabling it to lay a fiber optic network along
TNB's electrical transmission lines and distribution
infrastructure in Peninsular Malaysia.

A similar arrangement was entered into with Petroliam Nasional
Bhd's Peninsular gas utilization project to provide linkage to
areas not covered by TNB's transmission grid. Celcom is also
working with Lembaga Letrik Sabah and Sarawak Electricity Supply
Corporation to expand their fiber optic transmission network.

As operations grew extensively, TRI underwent a restructuring
exercise again in September 1996, this time concentrating on
seven core businesses: mobile services, transmission,
international gateway, fixed network, value-added
services/multimedia, data group/other services and international
ventures. Another significant event was the purchase by Deutsche
Telekom AG of a 21 percent stake in TRI, in October 1996,
heralding a strategic alliance especially in the transfer of
expertise and technology.

The Company has recently obtained approval for an agreement to
restructure the RM1.75b multi structure facility of subsidiary
Celcom comprising floating rate bonds, a guaranteed revolving
underwriting facility, US Dollar term loans and fixed rate
bonds. The repayment period for the facility has been extended
from December 2002 to September 2004. In another development,
Telefonaktiebolaget LM Ericsson and Lucent Technologies Inc will
provide Celcom new financing totaling US$232 million to support
part of its capital expenditure over the next five years.

TRI's US$375 million worth of eurobonds, due in 2004, have
spawned ongoing discussions with the committee representing
bondholders on terms and conditions for bond restructuring.


ZAITUN BERHAD: Court Postpones Winding Up Hearing
-------------------------------------------------
The hearing of the winding-up petition for Zaitun Berhad, filed
against the company by Maxseal Sdn Bhd has been postponed by the
Court to 9;00 am on 3 July 2001.


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


C&P HOMES: Expected To Default Long-Term Debt
---------------------------------------------
C&P Homes, Inc is expected to default on its payment of its
long-term commercial papers (LTCP) worth P1.5 billion due
November this year. The debt-ridden housing developer is making
an effort to draw up a debt workout with different creditor,
Business World reports Monday.

According to the report, another P1.5 billion worth of LTCPs are
expected to mature in two years.

C&P chairman and CEO Sulficio O. Tagud Jr said the company has
been in default since 1999, when the company stalled its
servicing on debts of P3 billion in November 1999, owing to
liquidity problems.


PILIPINO TELEPHONE: Cleared Of "Window-Dressing" Charges
--------------------------------------------------------
The Securities and Exchange Commission (SEC) is clearing
Pilipino Telephone Corporation (Piltel) from charges of "window-
dressing" its financial statements, The Philippine Star reports
Monday.

Based on the Corporate Acts of the company's new management as
of December 31, 1998, the SEC's Corporation Finance Department
(CFD) deemed the write-off and determination of some inventory
losses as reflective of "the fair state of the financial
condition of the company as attested to by its external auditors
for the years 1998, 1999 and 2000", the newspaper says.

CFD further noted, "These are prudential methods of recognizing
losses in conformity with the conservatism principle in
accounting."

Cited were the following: "a) the write down of P782.5 million
from the carrying value of construction in progress which
management deemed unrecoverable in the light of the prevailing
economic conditions; b) the write-off of P301-million prepaid
commissions which were capitalized in previous years; and c) the
recognition of inventory losses for certain inventory items."

In April, SEC imposed on Piltel a fine of P75,000 form having
made late filing of its financial report concerning its default
of its debt payments in 1999, the Star reports.


TRUST INTERNATIONAL: Seeking Easy Debt Schemes
----------------------------------------------
Paper manufacturing giant Trust International Paper Corporation
(Tipco) is seeking from creditor banks easy payment schemes for
debts worth P4.5 billion, which were restructured two years ago,
The Philippine Daily Inquirer reports Sunday.

According to the report, Tipco is seeking a 1 percentage point
cut in the interest rate on the remaining debts, apart from a
waiver on charges to imposed on the company when the two-year
grace period on principal payments lapses in July.

Tipco President Elon Ting is asking for revisions in the
restructuring agreement made in 1999, after its failure to
secure a white knight to bring in fresh capital worth $20
million, the report says.

The paper company's largest creditor banks include Equitable PCI
Bank, Metropolitan Bank and Trust Co., United Coconut Planters
Bank and the Bank of the Philippine Islands.

Tipco expects to meet payment of P300 million on the company's
commercial papers set to mature on July 1.


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


BRIERLEY INVESTMENTS: Completes Stake Sale In Tasman
----------------------------------------------------
Brierley Investments Limited (BIL) announced Friday it had
completed, through its wholly-owned subsidiary, BIL (NZ
Holdings) Ltd, the sale of its entire holding in New Zealand
listed-company Tasman Agriculture Limited for cash proceeds of
NZ$117 million.

BIL (NZ Holdings) Ltd has been a shareholder of Tasman
Agriculture Limited for the past 10 years, and has sold its 66
percent stake to Dairy Holdings Limited, a farming consortium
based in New Zealand's South Island.

BIL's CEO, Greg Terry, said the consideration represented a
price of NZ$1.68 per share, which would give BIL a profit on the
transaction of approximately NZ$25 million.

"We are particularly pleased with the results of this
transaction."

"Eighteen months ago Tasman's share price did not reflect the
net tangible asset backing of the company's dairy farms. We
began a farm sale process so that the true value of the assets
would be recognized," he said.

Terry said this strategy had been successful and that BIL was
able to sell its shares at about double the average of the
company's share price over its holding period.

"We believe we have now maximized our value and it is time for
other investors to take the company forward."

Terry also said that sales of non-core New Zealand assets over
the last six months had realized cash of more than NZ$350
million. This represented a profit over book value of more than
NZ$50 million.

BIL is now able to consider a number of opportunities in the
Australasian region.


BRIERLEY INVESTMENTS: Tasman Ceases To Be A Subsidiary
------------------------------------------------------
The Board of Directors of Brierley Investments Limited (BIL)
announced Friday that its wholly-owned subsidiary, BIL (NZ
Holdings) Ltd, has completed the sale of its entire shareholding
in Tasman Agriculture Limited (Tasman), comprising 66 percent of
the total issued share capital of Tasman, to Dairy Holdings
Limited, for a total sale consideration of approximately NZ$117
million.

Tasman, which is a company listed on the New Zealand Stock
Exchange, owns dairy farms in the South Island of New Zealand
and has sheep, beef and dairy interests in Tasmania. Tasman also
undertakes conversion of sheep and beef farms into dairy farms.

Through the sale, Tasman will cease to be a subsidiary of BIL.

BIL has been a shareholder of Tasman for more than 10 years. BIL
has been selling its substantial holdings in New Zealand dairy
farms. It still retains dairy and beef operations in Tasmania,
Australia.

BIL's book value of its interest in Tasman is NZ$92 million. The
excess of the sale proceeds over the book value is approximately
NZ$25 million.

The transaction is not expected to have any material effect on
the Group's net tangible assets or earnings per share for the
financial year ending 30 June 2001.

None of the Directors or Substantial Shareholders of the Company
has any interest, direct or indirect, in the transaction.


POWERMATIC DATA: Subsidiary To Be Liquidated
--------------------------------------------
The Board of Directors of Powermatic Data Systems Limited
announces that the Company's wholly-owned subsidiary,
Powermatic-Apcom Systems Pte Ltd, would be wound up voluntarily
under Section 290(1)(b) of the Companies Act, Cap. 50 pursuant
to an Extraordinary General Meeting held on 31 May 2001.

Powermatic-Apcom Systems Pte Ltd's principal activity of
distribution of computer products mainly to the Indian
subcontinent is no longer viable and the Company has been
dormant in the last financial year.

The above transaction does not have any material effect on the
net profits, earnings per share and net tangible assets of the
Company for the current financial year ending 28 February 2002.

None of the directors or substantial shareholders of the Company
have any interest, direct or indirect, in the transaction.


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


PROPERTY PERFECT: Lower Net Loss Explained
------------------------------------------
Property Perfect Public Company Limited would like to clarify
the result of our financial performance as of March 31, 2001.  
The Company reported net loss which is 20 percent less than the
net loss reported in the corresponding period of the previous
year.

The Company reported a net loss in the amount of Bt465 million
for the period of three months as of March 31, 2001. The
decrease in net loss by Bt985 million or a decrease by 68
percent was a result of the following reasons:

1. The Company had a higher gross margin in the amount of Bt22
million due to the increased selling price.

2. Share of loss of associates companies decreased by Bt657
million compare to the same period of the previous year

3. Other income were increase in the amount of Bt13 million.

4. Loss from exchange rate increased in the amount of Bt123
million.

5. Interest expenses decreased by Bt144 million.

6. Selling and administrative expenses and doubtful debt
decreased in the amount of Baht 32 million.

7. As the Court has ordered the Company to enter the
rehabilitation process, the claims which have been filed through
debt process were higher than the amount recorded by the
Company. The Company then made an additional allowance for the
amount of Bt240 million for this purpose and recorded it in the
income statement.


ROBINSON DEPARTMENT: Court OKs Capital Reduction
------------------------------------------------
Robinson Department Store Public Company Limited (Company) and
its appointed Plan Administrator Robinson Planner Limited state
that on 1 May 2001, the Court has granted an approval for the
Plan Administrator to proceed with registration of reduction and
increase of capital, and amendment to the Memorandum and
Articles of Association of the Company with the Commercial
Registration Department, Ministry of Commerce. The amendment was
made in order to comply with the provisions of the business
reorganization plan of the Company, the details of which are
provided as follows:

1. The Company shall reduce its registered capital by way of
canceling the 38,911,849 unissued shares, which have the par
value of Bt10 per share, for the total amount of Bt389,118,490
from the existing registered capital of Bt1,870,000,000 to be
the registered capital of Bt1,480,881,510, divided into
148,088,151 ordinary shares, which have the par value of Bt10
per share in order to effect the registered capital of the
Company to be equal to its existing paid-up capital;

2. Clause 4 of the Company's Memorandum of Association shall be
amended for the consistency with said capital reduction as
mentioned in item 1 above to be as follows:

   "Clause 4. The registered capital is Bt1,480,881,510 divided
into
148,088,151 shares, the par value is Bt10 per share, classified
into 148,088,151 ordinary shares, none preference share."

3. The Company's existing registered capital of Bt1,480,881,510
divided into 148,088,151 ordinary shares, which have the par
value of Bt10 per share, shall be increased in addition for the
amount of Bt13,327,933,590 divided into 1,332,793,359 ordinary
shares, which have the par value of Bt10 per share, to be the
total registered capital of Bt14,808,815,100 divided into
1,480,881,510 ordinary shares, which have the par value of Bt10
per share. The process of registration of such capital increase
shall be promptly proceeded after the completion of registration
of capital reduction and amendment to Clause 4. of the Company's
Memorandum of Association as stated above in items 1 and 2.

The Company shall allocate the newly issued shares arisen from
such capital increase by way of private placement i.e. to the
specific investor(s) of not exceeding 35 persons and/or
institutional or qualified investor(s) pursuant to the
Notification of the Securities and Exchange Commission No.
GorJor.12/2543 re: procedures in relation to the application for
offering of new shares and its permission dated 22 March 2000.  
Details of the allocation shall be in accordance with the
provisions as specified in the business reorganization plan of
the Company which the summary of such is provided as follows:

   (1) 888,528,906 newly issued ordinary shares (equivalent to
approximately 60 percent of all issued and paid-up shares of the
Company after the capital increase) shall be allocated to the
Unsecured Financial Creditors of the Company who are groups 2, 3
and 4 creditors as specified in the Company's business
reorganization plan, by way of conversion of debts in the amount
of approximately Bt1.777 billion owed to said groups of
creditors into such amount of ordinary shares, at the price of
Bt2 per share.

   (2) 370,220,377 newly issued ordinary shares (CRC Support
Shares) (equivalent to approximately 25 percent of all issued
and paid-up shares of the Company after the capital increase)
shall be allocated to Central Retail Corporation Company Limited
(CRC) and/or the designated person(s) of CRC, at the

   (3) 74,044,076 newly issued ordinary shares (MIOP Shares)
(equivalent to approximately 5 percent of all issued and paid-up
shares of the Company after the capital increase) shall be
allocated to Special Purpose Vehicle(s) which is/are juristic
person(s) incorporated by a group of the Company's management
according to the Management Incentive Ownership Program, at the
offering price of Bt0.0001 per share.

   4. Clause 4 of the Company's Memorandum of Association shall
be amended for the consistency with said capital increase as
mentioned in item 3 above to be as follows:

      "Clause 4. The registered capital is Bt14,808,815,100
divided into 1,480,881,510 shares, the par value is Bt 10 per
share, classified into 1,480,881,510 ordinary shares, none
preference shares."

   5. Clause 8 and 10 of the Company's Articles of Association
shall be amended to be as follows:

      "Clause 8. In paying on shares, subscriber or purchaser
shall not set-off with the Company's debt unless in order for
the compliance with the Company's business reorganization plan
as approved by the Court on 20 December 2000."; and

      "Clause 10. The Company shall have foreign shareholders
holding shares altogether of not more than forty nine percent of
all issued shares of the Company."

   6. After price of shares is paid to the Company by such
persons as stated in items 3 (2) and (3) above and following to
the proceeding of registration of capital increase of the
Company's registered capital, the Company's registered capital
and paid-up capital shall also
be reduced in the amount of Bt3,702,203,770 divided into
370,220,377 ordinary shares, which have the par value of Bt10
per share, from the existing registered and paid-up capital of
Bt14,808,815,100 divided into 1,480,881,510 ordinary shares,
which have the par value of Bt10 per share, to be the total
registered and paid-up capital of Bt11,106,611,330 divided into
1,110,661,133 ordinary shares, which have the par value of Bt 10
per share.

   7. Clause 4 of the Company's Memorandum of Association shall
be amended for the consistency with said capital reduction as
mentioned in item 6 above to be as follows:

     "Clause 4. The registered capital is Bt11,106,611,330
divided into
1,110,661,133 shares, the par value is Bt10 per share,
classified into 1,110,661,133 ordinary shares, none preference
shares."


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

Troubled Company Reporter -- Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick,
Ronald Villavelez, Maria Vyrna Ni¤eza, Editors.

Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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

The TCR -- Asia Pacific subscription rate is $575 for 6 months
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 301/951-6400.

                      *** End of Transmission ***