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

                   A S I A   P A C I F I C

            Tuesday, July 3, 2001, Vol. 4, No. 129


                         Headlines

A U S T R A L I A

ALPHA HEALTHCARE: Posts Notice Of Conditions Status
ANACONDA NICKEL: Announces Details Of Renounceable Issue
ANACONDA NICKEL: Revises Terms Of Rights Issue Proposal
AUSTRALIAN DERIVATIVES: Creditors Impose Liquidation
AUSTRIM NYLEX: Hopkins Partners Changes Holding
BRIDGE INFORMATION: AT&T Files Order To Terminate Services
BRIDGE INFORMATION: Urges Judge To Deny MDC's Request
BULONG OPERATIONS: Ikin Resigns As Director
CABLE & WIRELESS: Makes Deal With Commonwealth Of Australia
HIH HOLDINGS: Removed From Official List
HIH INSURANCE: Removed From Official List
LIBERTYONE LIMITED: Talks For Shell Sell-Off Underway
STRAITS RESOURCES: Offering Incentive Shares To Staff


C H I N A   &   H O N G  K O N G

CHINA GOOD: Winding Up Petition Hearing Set
HIGHVIEW INVESTMENT: Petition To Wind Up Scheduled
IASIAWORKS INC: Plans To Liquidate Hong Kong Unit
KENSLAND REALTY: Winding Up Petition Hearing Set
PSINET INC: Judge OKs Nixon's Retention As Special Counsel
PSINET INC: Retains Sidley As Special Counsel
SHEEN PEACE: Petition To Wind Up On Docket
TAI CHEUNG: Reports Loss Of HK$85.4M


I N D O N E S I A

TEXMACO JAYA: Transfers US$53M In Debt to Polysindo Eka
WICAKSANA OVERSEAS: Shareholders OK Jakarana Stake Sale


J A P A N

TOKYO METALLIC: Softbank To Execute Tender Offer Bid


K O R E A

DAEWOO MOTOR: Pressure On As Banks Meet Lending Obligations
DAISHIN LIFE: Submits Revised Self-rescue Plan
HYUNDAI ASAN: $22M In Overdue Tourism Fees To Be Paid Today
HYUNDAI ASAN: Mt. Kumgang Tour Suspension Planned
HYUNDAI PETROCHEM: Creditors Plan Sell-off For October
SAMSUNG MOTORS: Unpaid Debt Drops To W1.7T


M A L A Y S I A

CYGAL BERHAD: Creditors OK Composite Workout Scheme
KL INDUSTRIES: Moratorium Extended
PROJEK USAHASAMA: Still In Default
SPORTMA CORP: Three Units Wound Up
TAI WAH: Submits Revised Financial Projections
TECHNO ASIA: Posts Auditors Qualification Re Annual Report


P H I L I P P I N E S

BAYAN TELECOMS: No Legal Blunder, Benpres Says
FAIRMONT HOLDINGS: Clarifies Stock Rights Offer
MONDRAGON LEISURE: CDC Sanctions Financial Records Access
PILIPINO TELEPHONE: PLDT Transfers 208M Shares To Advisors


S I N G A P O R E

ACMA LIMITED: OUB, Maybank Offer Loans To Repay Bonds


T H A I L A N D

SIKARIN PUBLIC: Shareholders' Approve Delisting Plan
SVOA PUBLIC: Asset Plus Renders Opinion Re Tender Offer
THAI PETROCHEM: Mortgage Documentation Registration Ongoing
THAI TELEPHONE: Reaches Deal With Creditors Re Debt Workout



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


ALPHA HEALTHCARE: Posts Notice Of Conditions Status
---------------------------------------------------
In relation to Ramsay Centauri Pty Ltd's (Ramsay) off-market
offer to purchase all of the ordinary shares in Alpha Healthcare
Limited (Alpha) (Takeover Offer), Lawyers Blake Dawson Waldron
would like to refer to the notice given under section 630(2)(b)
of the Corporations Law (the Notice) lodged with the Australian
Stock Exchange (ASX) on 22 June 2001, in which the re-set date
for giving notice of the status of the conditions of the
Takeover Offer was stated to be 29 June 2001.

In addition, in accordance with section 630(5) a copy of the
notice was sent to Alpha Friday.

Notice Under Section 630(3) Of The Corporations Law

TO: Alpha Healthcare Limited ACN 000 727 882:

Ramsay Centauri Pty Limited ACN 096 070 156 (the Bidder) gives
notice under section 630(3) of the Corporations Law that:

(a) on 2 May 2001, the Bidder declared the offers dated 26 April
2001 (the Offers) by it under its off-market takeover bid to
acquire all of the fully paid ordinary shares in Alpha
Healthcare Limited free from the conditions of the Offers set
out in clause 5.1 of Section 1 of the Bidder's Statement dated
12 April 2001, which includes the Offers; and

(b) so for as the Bidder knows, the conditions of the Offers set
out in clause 5.1 of Section 1 of the Bidder's Statement dated
12 April 2001, which includes the Offers were, at the time of
giving this notice, fulfilled.

The voting power in Alpha Healthcare Limited which, so far as
the Bidder knows, it has at the time of giving this notice is
88.8 percent.


ANACONDA NICKEL: Announces Details Of Renounceable Issue
--------------------------------------------------------
Anaconda Nickel Limited (the Company) announces the following
details of the company's renounceable issue, thus:

Application For Quotation Of Additional Securities & Agreement

Name of Entity
Anaconda Nickel Limited

ACN or ARBN
060 370 783

Part 1 - All Issues

1. Class of securities issued          Ordinary Shares
   or to be issued

2. Number of securities issued         90,491,187
   or to be issued (if known)
   or maximum number which
   may be issued

3. Principal terms of the securities   The securities issued
                                       will be
   (eg, if options, exercise price     fully paid Ordinary
                                       Shares and
   and expiry date; if partly paid     will rank equally in all
   securities, the amount              respects with the fully
                                       paid
   outstanding and due dates for       Ordinary Shares currently
                                       on
   payment; if convertible securities, issue.
   the conversion price and dates
   for conversion)

4. Do the securities rank equally      Yes
   in all respects from the date
   of allotment with an existing
   class of quoted securities

   If the additional securities
   do not rank equally, please
   state:
   * the date from which they do
   * the extent to which they
     participate for the next
     dividend, (in the case of
     a trust, distribution) or
     interest payment
   * the extent to which they do
     not rank equally, other than
     in relation to the next
     dividend, distribution or
     interest payment

5. Issue price or consideration        $1.55 per share

6. Purpose of the issue (if            The proceeds of the
                                       Rights
   issued as consideration for         Issue will be used by
                                       Anaconda
   the acquisition of assets,          to fund the redemption by
   clearly identify those              Murrin Murrin Investments
                                       Pty
   assets)                             Limited of its $0.40
                                       Unsecured Notes, due on
                                       30 June 2001 with the
                                       balance
                                       to be available to
                                       Anaconda
                                       for working capital for
                                       the
                                       ramp up of the Murrin
                                       Murrin
                                       Project.

7. Dates of entering securities        No later than 31 August
                                       2001
   into uncertified holdings
   or despatch of certificates

                                      Number Class
8. Number and class of all       1. Existing  Ordinary
   securities quoted on          371,013,868
   ASX (including the
   securities in clause          2. Proposed  Ordinary
   2 if applicable)               90,491,187

                                      Number Class
9. Number and class of all               N/A
   securities not quoted
   on ASX (including the
   securities in clause 2
   if applicable)

10.Dividend policy (in the case        The profits of the
                                       Company
   of a trust, distribution            which the Directors may
                                       from
   policy) on the increased            time to time determine to
   capital (interests)                 distribute by way of
                                       dividend
                                       are payable equally on
                                       all
                                       fully paid Ordinary
                                       Shares.

Part 2 - Bonus Issue Or Pro Rata Issue

11. Is security holder approval        No
    required

12. Is the issue renounceable          Renounceable
    or non-renounceable

13. Ratio in which the securities      1 for 4.1
    will be offered

14. Class of securities to which       Ordinary
    the offer relates

15. Record date to determine           11 July 2001
    entitlements

16. Will holdings on different         N/A
    registers (or subregisters)
    be aggregated for calculating
    entitlements

17. Policy for deciding entitlements   Entitlement will be
                                      rounded in relation to
                                      fractions down to nearest
                                       whole number

18. Names of countries in which the    Hong Kong, Ireland,
                                       United
    entity has security holders        Kingdom, Malaysia,
                                       Singapore,
    who will not be sent new issue     Canada, China, Germany,
    documents                          Indonesia, Japan, South
                                        Africa,
                                       Thailand, United States.
    Note: Security holders must be
    told how their entitlements
    are to be dealt with.

    Cross reference: rule 7.7.

19. Closing date for receipt of        10 August 2001
    acceptances or renunciations

20. Names of any underwriters          Glencore International AG

21. Amount of any underwriting fee     2.5% of the price per
                                       share on or commission
                                on all shares issued under the
                                       rights issue other than
                                       on the
                                       Underwriter's pro-rata
                                       entitlement.

22. Names of any brokers to the        N/A
    issue

23. Fee or commission payable to       N/A
    the broker to the issue

24. Amount of any handling fee         N/A
    payable to brokers who
    lodge acceptances or
    renunciations on behalf
    of security holders

25. If the issue is contingent         N/A
    on security holders'
    approval, the date of
    the meeting

26. Date entitlement and acceptance    04 July 2001
    form and prospectus will be
    sent to persons entitled

27. If the entity has issued options,  N/A
    and the terms entitle option
    holders to participate on
    exercise, the date on which
    notices will be sent to
    option holders

28. Date rights trading will begin     05 July 2001
    (if applicable)

29. Date rights trading will end       03 August 2001
    (if applicable)

30. How do security holders sell       As detailed in the
                                       Prospectus
    their entitlements in full
    through a broker

31. How do security holders sell       As detailed in the
                                       Prospectus
    part of their entitlements
    through a broker and accept
    for the balance

32. How do security holders dispose    As detailed in the
                                       Prospectus
    of their entitlements (except
    by sale through a broker)

33. Dispatch date                      To be advised

Part 3 - Quotation Of Securities

34. Type of securities (tick one)

    (a) X  Securities described in Part 1

    (b)    All other securities

Example: restricted securities at the end of the escrowed
period, partly paid securities that become fully paid, employee
incentive share securities when restriction ends, securities
issued on expiry or conversion of convertible securities

    Entities that have Ticked Box 34(a)

    Additional Securities Forming a New Class of Securities
    (If the additional securities do not form a new class, go to
43)

35.    The names of the 20 largest holders of the additional
         securities, and the number and percentage of
         additional securities held by those holders

36.    A distribution schedule of the additional securities
         setting out the number of holders in the categories
         1 - 1,000
         1,001 - 5,000
         5,001 - 10,000
         10,001 - 100,000
         100,001 - and over

37.    A copy of any trust deed for the additional securities
(now go to 43)

All Entities

Fees

43. Payment method (tick one)

       Cheque attached

       Electronic payment made
       Note: Payment may be made electronically if Appendix 3B
is given to ASX electronically at the same time.

    X  Periodic payment as agreed with the home branch has been
       Arranged
       Note: Arrangements can be made for employee incentive
             schemes that involve frequent issues of securities.

Quotation Agreement

1.  Quotation of our additional securities is in ASX's absolute
discretion. ASX may quote the securities on any conditions it
decides.

2.  We warrant to ASX that the issue of the securities to be
quoted complies with the law and is not for an illegal purpose,
and that there is no reason why those securities should not be
granted quotation. We warrant to ASX that an offer of the
securities for sale within 12 months after their issue will not
require  disclosure under section 707(3) of the Corporations
Law.

3.  We will indemnify ASX to the fullest extent permitted by law
in respect of any claim, action or expense arising from or
connected with any breach of the warranties in this agreement.

4.  We give ASX the information and documents required by this
form. If any information or document not available now, will
give it to ASX before quotation of the securities begins. We
acknowledge that ASX is relying on the information and
documents. We warrant that they are (will be) true and complete.


ANACONDA NICKEL: Revises Terms Of Rights Issue Proposal
-------------------------------------------------------
The Board of Anaconda Nickel agreed Friday to revise the terms
of the proposed A$92.7 million, $2.00 Rights Issue underwritten
by Glencore International AG (the underwriter).

In order to fully secure the financial position of the Company
during the remaining ramp up period of Murrin Murrin, the Board
resolved to renegotiate the underwritten amount under the
underwriting agreement with the underwriter to A$140.3 million.

In satisfactorily achieving this outcome the Board took into
account that professional investor and institutional
participation during the Rights trading period was in the
shareholders' interests and lowered the issue price for these
new shares to $1.55 (the final price).

The new shares will rank equally with existing shares and will
be issued to all shareholders who are entered on the Company's
register as at 5 of July 2001 (the ex-rights date).

The amount of A$140.3 million raised by the Company as a result
of this issue is fully underwritten for a total fee of 2.5
percent. In addition, the underwriter has agreed to make the
A$92 million available under the original underwriting agreement
to the Company immediately upon lodgment of the Prospectus,
expected to be Friday.


AUSTRALIAN DERIVATIVES: Creditors Impose Liquidation
----------------------------------------------------
Creditors of Australian Derivatives Exchange (ADX) Wednesday
last week decided to put the company into liquidation, after
they rejected a proposal of the company's former chairman, Ralph
Doubell, Australasian Business Intelligence reports Friday.

ADX went into voluntary administration in late March, after 11
weeks of trading.

Administrator Stephen Parbery of Prentice Parbery and Barilla
recommended the liquidation of the company, the report says.


AUSTRIM NYLEX: Hopkins Partners Changes Holding
-----------------------------------------------
Hopkins Partners Funds Management Limited ceased to be a
substantial shareholder in Austrim Nylex Limited on 29 June
2001.


BRIDGE INFORMATION: AT&T Files Order To Terminate Services
----------------------------------------------------------
AT&T Corporation provides certain telecommunications and related
services to Bridge Information Systems and Savvis under
applicable tariffs and certain agreements between the parties.
These services continued even after the Debtors' filing of the
Chapter 11 cases.  The court had also ordered AT&T and other
utilities to continue rendering such services.

AT&T sent a demand for additional adequate assurances to the
Debtors.  Then, AT&T later filed a motion for an order vacating
the Utility Order, which restrained utilities from refusing
service to the Debtors and established procedures for
determining adequate assurances.  AT&T also sought an order
authorizing them to terminate services to Savvis.

To resolve the dispute, the parties met and conferred concerning
the terms under which AT&T will withdraw the motion, without
prejudice, and will continue to render their services to Bridge
and Savvis.  The parties agree that the total undisputed amount
in arrears due to AT&T by Bridge and Savvis through March 31,
2001 reached $5,235,000 - excluding costs associated with pre-
petition AT&T services provided directly to Bridge.

Judge McDonald approved the following schedule of payment from
Bridge and Savvis to AT&T:

      Date          Payment
      ----          -------
      04/05/01    $3,000,000  representing:
                                (i) A $2,350,000 partial payment
                                    of the Undisputed Arrears;

                               (ii) A $200,000 partialrefundable
                                    security deposit; and

                              (iii) A $450,000 payment for
                                    services provided by AT&T to
                                    Bridge/Savvis for the week
                                    beginning April 2.

      04/11/01      250,000 (addt'l refundable security deposit)

      05/01/01    1,442,500 (partial payment Undisputed Arrears)

      05/15/01     1,442,500  (final payment Undisputed Arrears)

      Starting April 9 and every Monday thereafter, Bridge and
Savvis shall pay AT&T a total of $450,000 each week as weekly
pre-payments for AT&T Services.

All payments to AT&T shall be made via wire transfer, shall
be directed in the manner prescribed in written instructions
which ATT has provided to Bridge and Savvis, and shall be
accompanied by a written notice by 5:00 p.m. (Eastern Time) on
the due date(by fascimile or electronic mail), that each wire
transfer has been made.  The written notice shall be sent to
AT&T's counsel.

>From time to time, AT&T and Bridge also agreed to confer in
orderto reconcile and adjust the amounts payable:

      (a) Should the Weekly pre-payments be insufficient or
should there be a material increase or decrease in the post-
petition charges due AT&T, AT&T or Bridge/Savvis, should either
party so request, is entitled to an immediate increase or
decrease in the amount of the weekly pre-payments set forth,
commencing with the weekly pre-payment following such adjustment
request, and such amount shall be equal to the total weekly
charges that accrued
during the week prior to any adjustment request; provided
however, in the event Bridge/Savvis or AT&T reasonable and in
good faith dispute any adjustment request, and Bridge, Savvis
and AT&T are unable to resolve any such dispute, Bridge/Savvis
shall not be deemed to be in violation or default under this
stipulation and order so long as Bridge/Savvis petitions the
Bankruptcy Court within five business days of the adjustment
request for resolution of the adjustment request, and agrees to
abide by such relief as the Bankruptcy Court may order.

      (b) To the extent that in any given month the charges due
AT&T exceed the weekly pre-payments made to AT&T by
Bridge/Savvis in such month, Bridge/Savvis shall, within three
business days of notification by AT&T, pay to AT&T sufficient
funds to cure the deficiency, provided however, in the event
Bridge/Savvis reasonably and in good faith dispute the
deficiency request, and the parties are unable to resolve the
dispute, Bridge/Savvis shall not be deemed to be in violation or
default of this stipulation and order so long as Bridge/Savvis
petition the Bankruptcy Court within five business days of the
deficiency request for resolution of the deficiency request, and
agree to abide by such relief as the Bankruptcy Court may order.

      (c) To the extent Bridge/Savvis or AT&T asserts any
disputes with respect to any adjustment request or deficiency
request, Bridge/Savvis or AT&T, as the case may be, shall within
two business days of an adjustment request or deficiency request
present a detailed written statement to the other parties, which
identified and describes the disputes in question.  All written
disputes submitted by Bridge/Savvis or AT&T shall be accompanied
by supporting documentation to the extent possible.  In
addition, to the extent that Bridge/Savvis or AT&T assert any
disputes with respect to the adjustment request or deficiency
request, Bridge/Savvis shall pay AT&T the undisputed amount
pursuant to the terms set forth in this stipulation and order,
subject to disgorgement as a result or Court Order.

      (d) To the extent that in any given month the charges due
to AT&T are less than the weekly pre-payments made by
Bridge/Savvis in such month, AT&T shall be permitted to apply
such funds to any outstanding post-petition balance due AT&T.
To the extent there is no outstanding post-petition balance due
to AT&T, then such amounts shall be credited against the
subsequent weekly pre-payments, which would be due from
Bridge/Savvis to AT&T.

If Bridge and Savvis fail to make any of the weekly pre-payments
on a payment date, AT&T is authorized to suspend all services
rendered, unless Bridge/Savvis cures such default within 48
hours after AT&T's written notice.  If Bridge and Savvis fail to
pay other obligations aside from the weekly pre-payments or
comply with any of the terms of the stipulation order, AT&T can
suspend its services, unless Bridge/Savvis cures the default
within 24 hours after AT&T's notice.

If Bridge and Savvis fail to cure their default within the cure
period, the automatic stay shall be terminated and the Utility
Order shall be vacated (but only with respect to AT&T) without
further notice or hearing so that AT&T will be permitted to
immediately suspend all its services rendered to Bridge and
Savvis.  AT&T will also be allowed to offset against any deposit
or weekly pre-payment held by AT&T with respect to outstanding
Bridge/Savvis obligations owed to AT&T (excluding pre-petition
Bridge direct accounts).  AT&T also reserves its right to pursue
outstanding amounts owed to AT&T by Bridge and Savvis if they
fail to make any of the payments.

The parties agree to continue reconciling any disputed amounts
not included in the undisputed arrears, which will be paid after
and agreement is reached and within 10 business days of
receiving AT&T's notice.

The term of the stipulation and order with respect to Bridge
only shall expire automatically on the following:

      (i) The effective date of Bridge's confirmed Plan of
Reorganization, or

      (ii) The closing date of a sale of substantially all of
the assets of Bridge (to the extent that AT&T is no longer
providing local and/or long distance services to Bridge), or

      (iii) The closing date of a final sale, in a series of
sales, of substantially all of the assets of Bridge (to the
extent that AT&T is no longer providing local and/or long
distance services to Bridge), or

      (iv) Conversion of Bridge's Chapter 11 proceeding to a
Chapter 7 proceeding.

Then, AT&T may apply any security deposit or remaining weekly
pre-payment to any outstanding amounts due and owing to AT&T by
Bridge /Savvis (excluding pre-petition Bridge direct accounts),
and shall refund to Bridge any remaining portion of any weekly
pre-payment or security deposit paid by Bridge.  But if AT&T
continues to provide local and/or long distance services to
Bridge post-sale, post-confirmation or post-conversion, AT&T
reserves its right to request additional adequate assurances
from Bridge.

With respect to Savvis only, the term of this stipulation and
order shall expire automatically on the following:

      (i) The effective date of Bridge's confirmed Plan of
Reorganization (on the condition that the effective date is
after all obligations contained are paid), or

      (ii) Conversion of Bridge's Chapter 11 proceeding to a
Chapter 7 proceeding.

If either events happen, AT&T may apply any security deposit or
remaining weekly pre-payment to any outstanding amounts due and
owing to AT&T by Bridge /Savvis (excluding pre-petition Bridge
direct accounts).  And if AT&T continues to provide local and/or
long distance services to Savvis post-confirmation or post-
conversion, Savvis shall provide AT&T with an additional
security deposit in the amount of $3,600,000 within five days
after the happening of an event.

But Bridge/Savvis obligations to pay the undisputed arrears
shall continue after the termination of this stipulation and
order. (Bridge Bankruptcy News, Issue No. 9; Bankruptcy
Creditors' Service Inc., 609/392-0900)


BRIDGE INFORMATION: Urges Judge To Deny MDC's Request
-----------------------------------------------------
Bridge Information System (the Debtors) is urging Judge McDonald
to deny Market Data Corporation's (MDC) request for payment of
administrative expense claim, saying that it would be unfair to
all other post-petition claimants if the Court grants MDC's
request.

Lloyd A. Palans, Esq., at Bryan Cave, in St. Louis, Missouri,
relates that the Debtors have been meeting their post-petition
obligations to MDC pursuant to the Master Optional Services
Agreement.  So, Mr. Palans tells Judge McDonald, there is no
reason why the Debtors should be compelled to make payments that
are not even due yet.  Otherwise, Mr. Palans notes, it would be
tantamount to re-writing the Agreement.

Mr. Palans adds, MDC could never justify why Debtors' should pay
their administrative expense claim over the other entities that
are parties to the Debtors' numerous executory contracts that
also require for payments overdue. (Bridge Bankruptcy News,
Issue No. 9; Bankruptcy Creditors' Service Inc., 609/392-0900)


BULONG OPERATIONS: Ikin Resigns As Director
-------------------------------------------
The Board of Directors of Preston Resources Limited, the parent
firm of Bulong Operations Pty Ltd (BOP) hereby stated they have
received the resignation of Colin Ikin as a Director from all
Preston Group Companies. The resignation is effective 29 June
2001.

The Board would like to thank Ikin for his contributions and
wish him well for the future, says Managing Director A Griffin.


CABLE & WIRELESS: Makes Deal With Commonwealth Of Australia
-----------------------------------------------------------
Cable & Wireless Optus Limited (Optus) has entered into a deed
of agreement with the Commonwealth of Australia represented by
the Department of Defence and Singapore Telecommunications
Limited (Singtel).

The deed will govern the relationship between the Department of
Defense, the Optus Group of companies and Singtel in relation to
a number of contracts under which the Department is provided
with telecommunication infrastructure, services and support.

The agreement is conditional on Singtel gaining control of the
Company, according to Optus General Counsel B Hambrett.


HIH HOLDINGS: Removed From Official List
----------------------------------------
HIH Holdings (NZ) Limited will be removed from the official list
of Australian Stock Exchange Limited from the close of trading
on Wednesday, 4 July 2001, at the request of the Company, under
listing rule 17.11.

Security Code: HNZ


HIH INSURANCE: Removed From Official List
-----------------------------------------
HIH Insurance Limited has been removed from the official list of
Australian Stock Exchange Limited as from the close of trading
on Wednesday, 4 July 2001, at the request of the Company, under
listing rule 17.11.

Security Code: HIH


LIBERTYONE LIMITED: Talks For Shell Sell-Off Underway
-----------------------------------------------------
The Liquidator of LibertyOne Limited, John Raymond Gibbons has
held discussions with several parties who have expressed
interest in acquiring the corporate shell of LibertyOne Limited
and its associated Australian Stock Exchange (ASX) listing.

To date, a number of proposals and expressions of interest have
been made to the Liquidator, none of which have resulted in
either acceptance by the Liquidator or firm recommendation from
the Liquidator to the Committee of Inspection and to
shareholders. A number of the proposals are still being assessed
and the Liquidator will keep creditors and shareholders informed
of any final outcome.

Accordingly, a section 104 - 145 declaration (previously a
section 160WA declaration) in terms of the Income Tax Assessment
Act 1997 for the 2000/01 financial year will not be issued until
such time that it can be determined that there is no likelihood
shareholders will receive any further distribution in the course
of the winding up of LibertyOne Limited.

For more information call: Duncan Clubb, Ernst & Young, at 02
9248 5555


STRAITS RESOURCES: Offering Incentive Shares To Staff
-----------------------------------------------------
Straits Resources Limited announces a total of 203,400 Ordinary
Shares will be offered to employees of Straits Resources Limited
and its Australian based subsidiaries in accordance with the
passing of the resolution at the Annual General Meeting held on
30 May 2001.

  Application For Quotation Of Additional Securities & Agreement

Name of Entity
Straits Resources Limited

ACN or ARBN
22 056 601 417

Part 1 - All Issues

1. Class of securities issued          Ordinary Shares
   or to be issued

2. Number of securities issued         A maximum of 203,400
                                       Shares
   or to be issued (if known)
   or maximum number which
   may be issued

3. Principal terms of the securities   Issue of new securities
                                       to
   (eg, if options, exercise price     employees in accordance
                                       with
   and expiry date; if partly paid     the terms and conditions
   securities, the amount              attached herewith. Refer
   outstanding and due dates for       Annexure 'A'
   payment; if convertible securities,
   the conversion price and dates
   for conversion)

4. Do the securities rank equally      Yes the new securities
                                       have
in all respects from the date       equal ranking, however
                                       are
   of allotment with an existing       subject to escrow
                                       restrictions
   class of quoted securities          as detailed in Annexure
                                       'A'.

   If the additional securities
   do not rank equally, please
   state:
   * the date from which they do
   * the extent to which they
     participate for the next
     dividend, (in the case of
     a trust, distribution) or
     interest payment
   * the extent to which they do
     not rank equally, other than
     in relation to the next
     dividend, distribution or
     interest payment

5. Issue price or consideration        Nil

6. Purpose of the issue (if            Incentive shares
   issued as consideration for
   the acquisition of assets,
   clearly identify those
   assets)

7. Dates of entering securities        To be advised
   into uncertified holdings
   or despatch of certificates

   Number Class & Number and class of all 59,639,801 (approx)
Fully paid ordinary securities quoted on  14,859,100 (approx)
Partly paid  ordinary ASX (including the 35,661,859
Convertible notes securities in clause
   2 if applicable)

                                  Number Class
9. Number and class of all       Refer Annexure 'B'
   securities not quoted
   on ASX (including the
   securities in clause 2
   if applicable)

10.Dividend policy (in the case        N/A
   of a trust, distribution
   policy) on the increased
   capital (interests)

Part 2 - Bonus Issue Or Pro Rata Issue

Items 11 to 33 are Not Applicable

Part 3 - Quotation Of Securities

34. Type of securities

    (a) x  Securities described in Part 1

    (b)    All other securities

Example: restricted securities at the end of the escrowed
period, partly paid securities that become fully paid, employee
incentive share securities when restriction ends, securities
issued on expiry or conversion of convertible securities

    Entities that have Ticked Box 34(a)

    Additional Securities Forming a New Class of Securities
    (If the additional securities do not form a new class, go to
43)

35.    The names of the 20 largest holders of the additional
         securities, and the number and percentage of
         additional securities held by those holders

36.    A distribution schedule of the additional securities
         setting out the number of holders in the categories
         1 - 1,000
         1,001 - 5,000
         5,001 - 10,000
         10,001 - 100,000
         100,001 - and over

37.    A copy of any trust deed for the additional securities
(now go to 43)

    Entities that have Ticked Box 34 (b)

    Items 38 to 42 are Not Applicable

           All Entities

Fees

43. Payment method (tick one)

       Cheque attached

       Electronic payment made

       Note: Payment may be made electronically if Appendix 3B
is given to ASX electronically at the same time.

       Periodic payment as agreed with the home branch has been
       Arranged

       Note: Arrangements can be made for employee incentive
             schemes that involve frequent issues of securities.

QUOTATION AGREEMENT

1.  Quotation of our additional securities is in ASX's absolute
discretion. ASX may quote the securities on any conditions it
decides.

2.  We warrant to ASX that the issue of the securities to be
quoted complies with the law and is not for an illegal purpose,
and that there is no reason why those securities should not be
granted quotation. We warrant to ASX that an offer of the
securities or sale within 12 months after their issue will not
require disclosure under section 707(3) of the Corporations Law.

3.  We will indemnify ASX to the fullest extent permitted by law
in respect of any claim, action or expense arising from or
connected with any breach of the warranties in this agreement.

4.  We give ASX the information and documents required by this
form. If any information or document not available now, will
give it to ASX before quotation of the securities begins. We
acknowledge that ASX is relying on the information and
documents. We warrant that they are (will be) true and complete.

Annexure "A"

Item 3 - Principal Terms Of The Securities

Employee Share Acquisition Plan - Operation

The directors may determine that the ESAP shall operate in
respect of any financial year and may determine the total value
of shares to be allotted to each eligible employee. Eligible
employees would receive a free grant of shares having a total
market value at the date of issue that is equal to the total
value determined by the directors.

The same number of shares will be allotted to each eligible
employee.

Shares issued under the ESAP will rank equally with existing
ordinary shares and the Company will apply to have the shares
quoted by the
Australian Stock Exchange (ASX).

Eligible Employees

An employee is eligible to acquire shares under the ESAP if:

* he or she is a Permanent Employee (as defined in the Income
Tax Assessment Act) of the Company or a subsidiary of the
Company on the day that the shares are allotted; or

* in the case of a full-time employee or a permanent part-time
employee:

- with at least 12 months service (whether continuous or non-
continuous); or

- who is not a resident of Australia within the meaning of the
Income Tax Assessment Act 1936; or

- who is not physically present in Australia on the day on
which the shares are allotted, the Board determines that he or
she is eligible to acquire shares under the ESAP. The Board may
determine that an employee who otherwise would be eligible to
acquire shares under the ESAP is nonetheless not eligible.

Restrictions On Shares

Shares allotted under the ESAP may not be disposed of,
transferred, encumbered or otherwise dealt with by an eligible
employee at any time until the earlier of:

a) the end of the period of 3 years commencing at the time of
acquisition of the shares by the employee; and

b) the time when the employee ceased, or first ceased, to be
employed by the company or its subsidiaries.

    Annexure "B"

Item 9 - Number & Class Of All Securities Not Quoted On ASX

                         Number    Expiry Date Exercise Price

"A" Class options       800,000   16 December 2001  $1.60
"A" Class options     1,050,000    25 May 2004   66.99 cents
"A" Class Options       600,000    29 May 2005   28.24 cents
"A" Class Options       500,000    29 May 2006   68.77 cents
Employee Options        275,000     2 July 2002         $2.15
Employee Options        250,000     9 August 2004   50.59 cents
Employee Options        910,000    29 May 2005   28.24 cents
Employee Options         60,000    29 May 2005   46.08 cents
Total                 4,445,000


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


CHINA GOOD: Winding Up Petition Hearing Set
-------------------------------------------
The petition to wind up China Good Limited is set for hearing
before the High Court of Hong Kong on August 15, 2001 at 9:30
am. The petition was filed with the court on June 6, 2001 by
Hongville Limited whose registered office is situated at 22nd
Floor, Hutchison House, 10 Harcourt Road, Central, Hong Kong.


HIGHVIEW INVESTMENT: Petition To Wind Up Scheduled
--------------------------------------------------
The petition to wind up Highway Investment Limited will be heard
before the High Court of Hong Kong on July 11, 2001 at 10:00 am.
The petition was filed with the court on May 18, 2001 by The
Kwangtung Provincial Bank Limited, Hong Kong Branch whose
principal place of business is situated at 1st to 3rd Floors,
Euro Trade Centre, 13-14 Connaught Road Central, Hong Kong.


IASIAWORKS INC: Plans To Liquidate Hong Kong Unit
-------------------------------------------------
IAsiaWorks Inc., an Internet data center company, is considering
liquidating its Hong Kong unit, as it plans to continue
operating its data centers in Taiwan and Korea, to shed some of
its debt burden and ongoing operating costs, The Asian Wall
Street Journal reported Friday.

According to the newspaper, the company is currently negotiating
with its creditors for the restructuring of its debts, while it
is seeking to raise its equity capital to finance a more
streamlined business.

The company's Hong Kong unit, which earned $26.6 million in
revenues last year, has entered into a non-binding memorandum of
understanding to refer a certain portion of its customer base to
PCCW Powerbase Data Center Services Limited, the report says.


KENSLAND REALTY: Winding Up Petition Hearing Set
------------------------------------------------
The petition to wind up Kensland Realty Limited will be heard
before the High Court of Hong Kong on August 22, 2001 at 9:30
am. The petition was filed with the court on June 8, 2001 by
Whale View Investment Limited whose registered office is
situated at 8th Floor, Cheung Lee Commercial Building, 25
Kimberley Road, Kowloon, Hong Kong.


PSINET INC: Judge OKs Nixon's Retention As Special Counsel
----------------------------------------------------------
Judge Gerber signed an interim order authorizing PSINet Inc.
(the Debtors) to employ and retain Nixon Peabody as their
special counsel, effective as of the commencement of the PSINet
cases, subject to final hearing before the Court on July 2, 2001
at 2:00 p.m. (PSINet Bankruptcy News, Issue No. 4; Bankruptcy
News Service, Inc., 609/392-0900)


PSINET INC: Retains Sidley As Special Counsel
---------------------------------------------
Prior to their petition for chapter 11 relief, PSINet Inc (the
Debtors) retained Sidley Austin Brown & Wood to represent the
company and four of its current and former officers named as
Individual Defendants in a class action filed under the
securities laws in the United States District Court for the
Eastern District of Virginia.

Sidley does not presently anticipate seeking payment from PSINet
or any of the Debtors for any fees and costs in connection with
the Securities Actions.

PSINet tells the Court that, out of an abundance of caution, in
the event that Sidley unexpectedly must seek some payment from
the Debtors at a later date, PSINet seeks the Court's
authorization to retain Sidley as special counsel, limited to
matters involving securities law and the pending Securities
Actions. In addition, Sidley may also perform limited services
in connection with the Securities Actions as they relate to the
PSINet Chapter 11 proceedings, as Wilmer, Cutler & Pickering
(WCP), general bankruptcy counsel for Debtors, may request.

To the extent Sidley seeks payment solely from PSINet's insurer,
National Union, Sidley will not seek Court approval for such
payment. Any compensation payable to Sidley by the Debtors and
their estates with respect to the Chapter 11 period will be
subject to Court approval in accordance with Sections 330 and
331 of the Bankruptcy Code, the Federal Rules of Bankruptcy
Procedure, the local Bankruptcy Rules and the orders of the
Court, including the Compensation Procedures Order.

                The Securities Class Action

Between November 3 and December 29, 2000, twenty-one putative
class action suits were filed against PSINet and four of its
current and former officers in the United States District Court
for the Eastern District of Virginia seeking relief under the
1933 Securities Act and the 1934 Securities Exchange Act. The
four officers named as individual defendants in the action are:
William L. Schrader, Harold Wills, Larry Hyatt and David N.
Kunkel.

The plaintiffs generally allege that PSINet, through the
Individual Defendants, made a series of false and misleading
statements to the press, in regulatory filings, and in company
releases concerning PSINet's acquisition of Metamor Worldwide,
Inc. and PSINet's ability to implement its business plan.

After hearing the defendants' motion to dismiss, the District
Court retained two counts of a single complaint (the McGowan
Action) and granted PSINet's motion to dismiss as to all other
counts of all complaints.

Presently, the District Court has appointed lead plaintiffs for
three potential classes and appointed local and lead counsel for
each lead plaintiff.

The District Court consolidated into one case and under one
caption all of the putative class actions, including the McGowan
Action, the actions that are the subject of an Amended Master
Complaint filed by the claimants and all other pending and
subsequently filed related cases.

After hearing the Debtors' Motion to Dismiss the Amended
Complaint and Debtors' Motion for Summary Judgment relating to
the McGowan Complaint, the District Court denied the Motion to
Dismiss and granted plaintiffs' Motion to Abate the Summary
Judgment Motion. Pursuant to an Order of the District Court, the
parties have served interrogatories and document requests,
objections and some responses. In its Order of April 2, 2001,
the District Court ordered document production in the Securities
Actions to commence on April 9, 2001. The District Court also
ordered that: (1) all document production be completed by June
4, 2001; (2) all non-expert discovery be completed by July 31,
2001; and (3) all expert discovery be completed by August 31,
2001. Also on April 2, 2001, the District Court heard a motion
to compel filed by plaintiffs and a motion to compel filed by
defendants. The District Court granted both motions.

Plaintiffs have filed a motion for class certification.
Defendants are in the process of taking discovery related to
that motion and preparing a response to that motion. Plaintiffs
have served several deposition notices, including a notice of
depositions of the Individual Defendants. Plaintiffs also have
served numerous third-party subpoenas, many of which are
pending.

During the time in which Sidley has represented PSINet and the
Individual Defendants in connection with the Securities Actions,
Sidley has become thoroughly familiar with the factual and legal
issues involved in those matters, the Debtors note, and Sidley
also has developed an extensive knowledge of PSINet's business
operations. PSINet believes that Sidley is both well-qualified
and uniquely able to continue to represent PSINet as special
securities law counsel during the pendency of the Securities
Action in an efficient and timely manner.

         Insurance Provision and Sidley's Compensation

PSINet is the insured on several insurance policies that provide
coverage to PSINet and its directors and officers, including a
policy with National Union Fire Insurance Company of Pittsburgh,
PA, and other policies with various other insurers that provide
additional layers of coverage beyond the National Union policy.
The insurance policies include direct coverage for the directors
and officers, indirect indemnification coverage for PSINet and
entity coverage for PSINet. PSINet has provided notice to its
insurers of the Securities Actions. National Union has reserved
its rights regarding all of the claims in the Securities Action
and has disclaimed coverage with respect to the claims in the
McGowan Action. Nevertheless, National Union has agreed to
advance defense costs associated with defense of all claims in
the Securities Actions.

To date, Sidley has been paid $200,000 by PSINet, satisfying the
retention amount set forth in the National Union policy. PSINet
notes that invoices from Sidley payable by National Union in the
amount of $468,156.81 remain outstanding and additional invoices
payable by National Union are being prepared for services to
date.

Christine Liverzani Prame, a partner in Sidley, advises that the
amount on invoices from Sidley payable by National Union has
accrued to $748,564.

Both PSINet and Sidley expect National Union to continue to
advance the fees and costs related to defense of this action.
With respect to compensation and reimbursement arrangements, Ms.
Prame affirms what is set forth in PSINet's application.

Ms. Prame also advises the Court that, as she understands, the
prosecution of the Securities Actions could result in the
assertion of substantial indemnification claims against PSINet
by the Individual Defendants. She notes a substantial risk that,
if the Securities Actions proceed and liability results, PSINet
will not be able to satisfy all of its indemnification
obligations through the application of insurance proceeds.
PSINet has disputed the insurers' position, and will continue to
do so, Ms. Prame relates, but, in light of that position, Ms.
Prame cautions of an increased risk that PSINet ultimately will
be responsible for indemnifying the Individual Defendants
without the benefit of insurance proceeds.

Sidley expects to continue representing the Individual
Defendants in the Securities Action. If any conflict should
arise between PSINet and any or all of the Individual
Defendants, Sidley will inform the Court immediately, Ms. Prame
assures.

Sidley will accrue fees for services in connection with the
Securities Actions at hourly rates currently ranging from $155
per hour for new associates to $550 per hour for senior
partners. Time devoted by legal assistants is charged at billing
rates currently ranging from $80 to $150 per hour. These hourly
rates are Sidley's standard hourly rates for work of this nature
and are subject to periodic adjustments to reflect economic and
other conditions. Sidley will also accrue direct charges for
expenses arising from its representation of PSINet and its
officers.

The principal attorneys and paralegals presently designated to
represent PSINet and their current standard hourly rates are:

           Mark D. Hopson                $450
           Michael D. Warden             $400
           Christine Liverzani Prame     $370
           Griffith Green                $350
           Colleen M. Lauerman           $275
           Anne Mayer Turk               $235
           Patrick F. Linehan            $185
           Licha M. Nyiendo              $185
           C. Kevin Marshall             $160
           Anthony Fabic                 $130
           Elizabeth Hord                $110

Sidley has informed the Debtors that the partners and associates
of Sidley who will be engaged in the Securities Actions are
members in good standing of the bar of the District of Columbia,
and that certain of those partners and associates are members of
the bar of the Commonwealth of Virginia or such other
jurisdictions as are relevant.

Sidley has also informed the Debtors that, except as described
in the Prame Affidavit, Sidley (i) does not hold or represent
any interest adverse to the Debtors or their estates with
respect to the matters for which Sidley is to be retained, and
(ii) does not have any "connections", as contemplated within
Bankruptcy Rule 2014(a), with the Debtors, creditors and any
other party in interest, their respective attorneys and
accountants, the U.S. Trustee or any person employed in the
Office of the U.S. Trustee, with respect to the matters on which
Sidley is to be retained.

In her affidavit, Ms. Prame reveals that Sidley has represented,
and currently represents: Anderson Consulting LLP, AT&T, Banc
One Leasing, Bell South, Computer Associates International, DIME
Commercial Corp., Donaldson, Lufkin & Jenrette, EMC Corporation,
FINOVA Capital Corp., GE Capital Corp. General Electric CA,
Hewlett-Packard, ICG Telecom Group, Lucent, Morgan Stanley,
Nissho Electronics, Primus Knowledge Solutions, Veritas Software
Corp. However, such representation is in matters unrelated to
the Debtors.

Ms. Prame further reveals that Sidley has represented MSTD with
respect to an investment in MSTD by PSINet Strategic Services,
Inc., one of the Debtors. Mr. Prame assures that, insofar as she
has been able to determine, Sidley has not and will not
represent MSTD in matters related to the PSINet chapter 11 cases
and the matters for which Sidley is to be retained.

Ms. Prame acknowledges that, Sidley and certain of its partners,
counsel and associates may have in the past represented, and may
currently represent and likely in the future will represent,
creditors and other parties in interest of the Debtors in
connection with matters unrelated to the Debtors and their
chapter 11 cases. In addition, certain of Sidley's partners,
counsel, associates or other employees may hold or in the past
have held publicly traded stock of PSINet Inc. or of creditors
of one or more of the Debtors. Accordingly, Sidley is not able
to state with certainty that every client connection has been
disclosed.

Ms. Prame indicates that, based on what is known to her and
related to the Court, she believes that Sidley is eligible for
employment and retention by PSINet pursuant to Sections 327(e)
and 328 fo the Bankruptcy Code and Bankruptcy Rule 2014(a).

Ms. Prame also covenants that, in the event that it determines
that it has any other connections with any significant creditors
of the Debtors once the Debtors' schedules have been filed.

The Debtors submit that the employment of Sidley by PSINet is
necessary and in the best interests of the Debtors and their
estates, their creditors and parties in interest. (PSINet
Bankruptcy News, Issue No. 4; Bankruptcy News Service, Inc.,
609/392-0900)


SHEEN PEACE: Petition To Wind Up On Docket
------------------------------------------
The petition to wind up Sheen Peace 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 May 25, 2001 by The
China State Bank Limited, Hong Kong Branch whose principal place
of business is situated at 39-41 Des Voeux Road Central, Hong
Kong.


TAI CHEUNG: Reports Loss Of HK$85.4M
------------------------------------
Tai Cheung Holdings posted a loss of HK$85.4 million for the
year to March 31, against a net profit of HK$4.3 million for the
year 1999-2000.  Turnover rose to HK$244.3 million from HK$104.4
million, the company said.


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


TEXMACO JAYA: Transfers US$53M In Debt to Polysindo Eka
-------------------------------------------------------
Publicly listed textile company PT Texmaco Jaya Tbk transferred
a debt of around US$53 million to its parent company PT
Polysindo Eka Perkasa Tbk, Asia Pulse reported Thursday.

The scheme is intended to facilitate the restructuring process
of the company's debts, said Texmaco Corporate Secretary Veterin
S.

The debts include Rp288.93 billion and US$3.58 million to the
Indonesian Bank Restructuring Agency and Rp3.11 billion and
US$20 million to other creditors, Veterin S told the Jakarta
Stock Exchange last Wednesday.

The company will provide the collateral with its assets.


WICAKSANA OVERSEAS: Shareholders OK Jakarana Stake Sale
-------------------------------------------------------
PT Wicaksana Overseas International Tbk, in its Annual General
Meeting on Thursday, approved the 60 percent stake sale of
subsidiary PT Jakarana Tama to Batavia Investment Ltd for
US$6.43 million to comply with the company's debt restructuring
deal with its creditors, AFX reports Thursday.

Deputy Finance Director Elys Karis said the company has not been
able to make up for the losses brought about by the termination
of its contract with Batavia Investment.

According to AFX, the company has previously said the
termination of the BAT contract will hit earnings in the first
half, with recovery expected in the third and fourth quarters as
the company secures new contracts with other
producers.

It has projected a net loss of Rp128.6 billion this year and
sales of Rp2.341 trillion, against a net loss of Rp201 billion
and sales of Rp2.541 trillion last year.


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


TOKYO METALLIC: Softbank To Execute Tender Offer Bid
----------------------------------------------------
Softbank Corporation is set to carry out a tender offer bid to
Tokyo Metallic Communications Corporation, Kyodo News reports
Friday.

Softbank's acquisition bid is in line with its thrust of
branching into the business of high-speed asymmetric digital
subscriber line (ADSL), which it hopes to offer as service to
individual customers and corporate clients through subsidiary
Yahoo! Japan Corporation and Tokyo Metallic respectively.

The acquisition is going to cost Softbank some Y4.5 billion and
the assumption of Tokyo Metallic liabilities.


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


DAEWOO MOTOR: Pressure On As Banks Meet Lending Obligations
-----------------------------------------------------------
Daewoo Motor will need to raise as much as W100-billion monthly
working capital on its own in the second half of this year, as
its creditor banks are going to cut its financial support
starting early this month, The Digital Chosun reported
yesterday.

Daewoo Motor's Director Kim Jong-do was quoted as saying,
"Considering that Daewoo Motor has been running in black since
April for three consecutive months, the company will not need to
seek further assistance from creditor banks."

Kim added that the company will only be able to raise its
working capital on its own if creditor banks agree to defer the
payments on debts now totaling W22.8 trillion, the report says.

It has been reported that creditor banks of the insolvent Korean
automaker pledged to extend a total of W727.9 billion to the
company, but only for the first half of the year, the report
says.

So far, total loans that have been extended now total W595.1
billion. The rest of the pledge, amounting to W132.8 billion, is
expected to be released early this month.

According to Kim, the company has completed around 80 percent of
its self-rescue program, part of which was the laying off of
over 7,000 workers.


DAISHIN LIFE: Submits Revised Self-rescue Plan
----------------------------------------------
After its original plan was rejected by the financial watchdog,
Daishin Life Saturday submitted to the Financial Supervisory
Commission (FSC) its revised management improvement plans, The
Korea Herald reports yesterday.

According to the plan, Daishin Life owner Yang Jae-dong and his
family will not inject any private money into the ailing life
insurer, and the company will not make any further investments
in Daishin Securities, the report says.

The panel is currently reviewing the plan.


HYUNDAI ASAN: $22M In Overdue Tourism Fees To Be Paid Today
-----------------------------------------------------------
Hyundai Asan, now the sole operator of the Mt. Kumgang venture
after the pullout of Hyundai Merchant Marine, was expected
yesterday to pay its overdue tourism fees amounting to $22
million, The Digital Chosun reports.

The amount covers the monthly payments from February to May, for
operating the tourism business, the report says. In addition,
the company was also expected to include the monthly fees for
June, amounting to $400,000.

Hyundai Asan Managing Director Kim Bo-sik told Chosun, "As the
money from Korea National Tourism Organization (KNTO) came in
late, we were not able to send the money to North Korea today.
Therefore, we will send the money by July 2."


HYUNDAI ASAN: Mt. Kumgang Tour Suspension Planned
-------------------------------------------------
Hyundai Asan is expected to suspend its Mt. Kumgang tour
operations in the first half of the month, as the company
considered cutting its scheduled ten tours to three-day trips
Sunday, The Digital Chosun reported yesterday.

The cancellation is planned due to the drop in the number of
tourists booked for the trip to the North Korean mountain
resort.


HYUNDAI PETROCHEM: Creditors Plan Sell-off For October
------------------------------------------------------
Creditors of Hyundai Petrochemical Company are set to complete
the sale of the company in October, The Korea Herald reported
yesterday, citing a creditor bank official.

The creditors also agreed Friday to extend a bailout package to
the company in the form of fresh loan worth W622.1 billion,
including a rollover of existing loans until the completion of
the sale.

"With a bailout plan for Hyundai Petrochemical drawn up, the
creditors will soon prepare a debt rescheduling program and push
to sell the company through mergers and acquisitions or asset
sales," the official was quoted as saying.

Meanwhile, the debt rescheduling plan for the company is
underway and is expected to be completed within two or three
months. The plan will be completed after the reevaluation of the
company's enterprise value.

According to a recent due diligence audit by Arthur Andersen,
the company's net assets and net liabilities stood at W2.8
trillion and W2.6 trillion, respectively.


SAMSUNG MOTORS: Unpaid Debt Drops To W1.7T
------------------------------------------
Samsung Motors unpaid debts, which are guaranteed by its sister
firms, have dropped to W1.7 trillion from W2.45 trillion, after
creditors issued asset-backed securities (ABS) on their 1.1
million shares in Samsung Life Insurance, The Asian Wall Street
Journal reported yesterday, citing Naeway Economic Daily.

According to the report, Samsung Life purchased W747.9 billion
of the ABS.


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


CYGAL BERHAD: Creditors OK Composite Workout Scheme
---------------------------------------------------
Following the financial crisis which began in 1997, the ringgit
was substantially depreciated, lending rates reached record high
levels and the stock market plunged. Cygal Berhad's banking
facilities were recalled or frozen by the financial
institutions. Collections became very difficult and demand for
payment increased. These, together with the litigation cases
encountered by Cygal in early 1998, has resulted in the
management experiencing difficulty in focusing on the revival of
Cygal and its subsidiaries and associated companies (Cygal
Group) activities.

Accordingly, on 18 July 1998, Cygal and its scheme subsidiaries,
namely Cygal Concretepump Sdn. Bhd. (CCS), Cygalland Development
Sdn. Bhd., Cygal Geotechnics Sdn. Bhd. (CGeotechnics) and C.T.A.
Realty Sdn. Bhd. applied to the Court for a restraining order
against further court proceedings to facilitate the finalization
and implementation of a scheme of restructuring pursuant to
Section 176 of the Companies Act, 1965.

On 4 August 1998, the said order was granted by the Court.
Cygalland and CGeotechnics were excluded from the said
Restraining Order subsequently as they will service and repay
their respective borrowings from funds generated from their
operations.

On 18 October 1999, under the purview of the Corporate Debts
Restructuring Committee, the Company obtained an informal
standstill with its local financial institution (FI) creditors
and on 6 December 1999, Cygal obtained a Court Order to exclude
the FI creditors from its Section 176 restraining order
protection.

On 13 November 1999, Cygal announced a proposed settlement
scheme between the Company and the non-FI creditors, details of
which are set out in Section 2.2.2 (Proposed Non-FI Scheme). The
Proposed Non FI Scheme was subsequently presented to the non-FI
creditors and was approved at the non-FI creditors meeting on 7
December 1999. The Court on 23 December 1999 approved and
sanctioned the Proposed Non FI Scheme.

Further to the above, the Board of Directors of Cygal announces
that Cygal, after several months of negotiation, has obtained
the approval-in-principle from the FI Creditors to implement a
composite restructuring scheme, including the Proposed Non FI
Scheme, to restore the Company's financial position so as to
enable it to concentrate on its core activities.

The proposed restructuring scheme encompasses the following:

   (i) Proposed exchange of 47,778,000 shares of Cygal with
35,833,500 new ordinary shares of RM1.00 each in a new
investment holding company, Active Accord Sdn. Bhd. (Newco), via
a members' scheme of arrangement pursuant to Section 176 of the
Act on the basis of three (3) new ordinary shares in Newco for
every four (4) shares held in Cygal (Proposed Share Exchange);

   (ii) (a) Proposed settlement of indebtedness of Cygal and two
of its subsidiaries, CCS and CTA (Proposed Debt Restructuring)
comprising the following:

      * the settlement of indebtedness amounting up to
approximately RM229 million to FI creditors by the issue of up
to approximately RM140 million nominal value of three-year zero
coupon irredeemable convertible unsecured loan stocks in Newco
(ICULS A), up to approximately RM18 million nominal value of
three-year zero coupon irredeemable convertible unsecured loan
stocks in Newco (ICULS B) and up to approximately RM82 million
nominal value of five-year 3 percent redeemable convertible
secured loan stocks in Newco (RCSLS) (Proposed FI Scheme); and

      * the settlement of indebtedness amounting to
approximately RM27 million to non FI creditors by the issue of
approximately RM27 million nominal value of ICULS B;

   (b) Proposed part settlement of indebtedness of United Golden
Mile Aviation Ltd., a subsidiary of Cygal (UGMA) amounting to
approximately RM730,000 to Overseas Chinese Banking Corporation
Ltd. (Labuan Branch) by the issue of approximately RM730,000
nominal value of ICULS B (Proposed OCBC Settlement);

(iii) Proposed Fund Raising;

(iv) Proposed acquisition of property development companies
(Proposed Acquisitions);

(v) Proposed employees' share option scheme (ESOS) for all
eligible employees and Executive Directors of Newco, Cygal and
its subsidiaries (Newco Group) (Proposed ESOS or Scheme); and

(vi) Proposed delisting of Cygal and listing of and quotation
for the entire issued and paid-up capital of Newco on the Second
Board of the Kuala Lumpur Stock Exchange (KLSE) (Proposed Newco
Listing).

The Proposed Share Exchange, Proposed Debt Restructuring and
Proposed Newco Listing are inter-conditional. The Proposed Fund
Raising, Proposed Acquisitions and Proposed ESOS are conditional
upon the Proposed Share Exchange, Proposed Debt Restructuring
and Proposed Newco Listing.

             Details Of The Proposals

Proposed Share Exchange

A new investment holding company, Active Accord Sdn. Bhd. was
incorporated to facilitate the implementation of the Proposals.
The existing shareholders of Cygal will have their respective
shares in Cygal, exchanged with new Newco ordinary shares of
RM1.00 each on the basis of three new ordinary shares in Newco
for every four shares held in Cygal.

The Proposed Share Exchange will be implemented through a
members' scheme of arrangement pursuant to Section 176 of the
Act.

Upon completion of the Proposed Share Exchange, shareholders of
Cygal will receive 35,833,500 new ordinary shares of RM1.00 each
in Newco and Cygal shall become a wholly-owned subsidiary of
Newco. The new Newco ordinary shares to be issued pursuant to
the Proposed Share Exchange will rank pari passu in all respects
with each other and with the existing two (2) ordinary shares of
RM1.00 each in Newco.

Proposed Debt Restructuring

The indebtedness of Cygal and certain of its subsidiaries with
the FI and non FI creditors are proposed to be settled via the
following arrangement:-

   Proposed FI Scheme

   The FI creditors have given their approval-in-principle for
Cygal and subsidiaries, CTA and CCS to settle the aggregate
amount of principal and interest and expenses (including but
limited to legal costs) due and owing by the Company, CTA and
CCS to the FI creditors pursuant to the credit facilities
granted by the FI creditors as at 31 March 1999 (Outstanding
Sum) in the following manner:

      (a) Interest accruing on the Outstanding Sum shall be
waived for the period commencing from 1 April 1999 thereon;

      (b) Every RM1.00 of the interest accruing on the
Outstanding Sum for the period from 1 April 1998 to 31 March
1999 (Outstanding Interest) will be converted into ICULS B;

      (c) RM0.61 for every RM1.00 of the Balance Outstanding Sum
(being defined as the Outstanding Sum less the Outstanding
Interest) will be converted into ICULS A; and

      (d) RM0.39 for every RM1.00 of the Balance Outstanding Sum
will be converted into RCSLS.

Pursuant to the Proposed FI Scheme, ICULS B and RCSLS will be
issued by Newco at 100 percent of their respective nominal
values whereas ICULS A shall be issued at approximately 91.74
percent of its nominal value. The indicative salient terms of
the ICULS A, ICULS B and RCSLS are set out in Table 2, Table 3
and Table 4 respectively.

The Proposed FI Scheme shall be conditional upon signing of a
Settlement Agreement between the Company and the FI creditors.

It is the intention of Cygal that the RCSLS will not be rated
and as such, application will be made to the Securities
Commission (SC) for a waiver from rating of the RCSLS as
required under the Private Debt Securities Guidelines issued by
the SC.

Proposed Non FI Scheme

The Proposed Non FI Scheme involves the settlement of
indebtedness of Cygal and CTA to its identified non-FI
creditors, which was announced by Cygal on 13 November 1999.

The Proposed Non-FI Scheme was presented to the non-FI creditors
and approved by the non-FI creditors at the court convened
meeting held on 7 December 1999. Pursuant to the Proposed Non FI
Scheme, all the amounts due to the identified non-FI creditors
shall be settled on the basis of RM1.00 nominal value of ICULS B
for every RM1.00 of debts recognized and accepted from claims of
the non-FI creditors as at 31 October 1998. All interest and
penalties accruing after 31 October 1998 until the Proposed Non
FI Scheme becomes effective shall be completely waived by the
non FI creditors. The indicative salient terms of the ICULS B
are set out in Table 3.

The details of indebtedness to be settled under the Proposed Non
FI Scheme are set out in Table 5.

Upon completion of the Proposed Non FI Scheme, all claims by the
non FI creditors under the Proposed Non FI Scheme shall be
deemed to have been fully and irrevocably satisfied and the non
FI creditors shall fully discharge and free Cygal and all
relevant parties from all actions, proceedings, claims, demands
or guarantees whatsoever which non FI creditors have or may have
for or in respect of the liabilities notwithstanding any
deficiencies in the eventual actual recovery by the non FI
creditors, mistakes and error of whatsoever kind in the proof of
debts filed by non FI creditors or the failure or omission to
file the proof of debts and no action, suit, arbitration,
proceeding and/or enforcement of security may thereafter be
initiated or maintained by any non FI creditors in respect of
all claims by the non FI creditors admitted for proof under the
Proposed Non FI Scheme.

All legal proceedings commenced and filed in any Court or other
tribunal of competent jurisdiction by a non FI creditor in
respect of amount due to him shall, upon the acceptance by him
of the Proposed Non FI Scheme and upon the said scheme becoming
effective, be dismissed on the terms that each party shall bear
its own cost. All orders, awards, judgment debts, interest
thereon and costs relating to any of the liabilities shall be
subject to the Proposed Non FI Scheme and be satisfied in the
manner above and the judgment creditors shall be prohibited from
levying any writ of execution or other similar actions against
Cygal Group.

As from the day on which the Proposed Non FI Scheme becomes
effective, all previous arrangements, compromises, commitments,
negotiations and moratorium entered into between Cygal and the
non FI creditors shall be superseded by the Proposed Non FI
Scheme.

Proposed OCBC Settlement

It is also proposed that RM730,000 of the total amount owing by
UGMA to Overseas Chinese Banking Corporation (Labuan Branch) is
to be settled via issuance of approximately RM730,000 nominal
value of ICULS B. The total of principal and interest
outstanding as at 31 December 2000 is RM9,941,078. The balance
outstanding after the part settlement will be repaid by disposal
of UGMA's assets.

Pursuant to the Proposed Debt Restructuring, the total
indebtedness to be settled by Cygal Group amounts up to
approximately RM256,862,000 and shall be settled via the
issuance of up to RM140,205,000 nominal value of ICULS A, up to
RM45,996,000 nominal value of ICULS B and up to RM82,238,000
nominal value of RCSLS.

2.3 Proposed Fund Raising

Cygal proposes to implement a fund raising exercise involving
issue of new Newco shares in conjunction with the overall
restructuring scheme of the Group. The Proposed Fund Raising
will raise the necessary funds for the Group to relieve its
existing tight cashflows.

The Company is presently considering the various options
available to undertake the Proposed Fund Raising and will
announce the details when finalized.

Proposed Acquisitions

In conjunction with the overall restructuring scheme of the
Group, Cygal proposes to acquire property development companies,
for which the consideration will be satisfied by way of issue of
new Newco shares to enhance its earnings. Details of the
Proposed Acquisitions have yet to be finalized and will be
announced upon signing of definitive agreements.

Proposed ESOS

The Proposed ESOS will involve the granting of options to
Eligible Employees of the Newco Group to subscribe for new
ordinary shares of RM1.00 each in Newco (ESOS Options). The
total number of Newco shares which may be made available under
the Scheme shall not exceed 10 percent of the total issued and
paid-up share capital of Newco at the time the options are
offered.

The Proposed ESOS, when implemented, shall be in force for a
period of ten years commencing from the date of the confirmation
letter submitted by the adviser to the SC that the Newco has:

   (a) fulfilled the SC's conditions of approval for the Scheme
and that the Bye-laws of the Proposed ESOS do not contravene the
SC's Policies and Guidelines on Issue/Offer of Securities in
relation to the ESOS; and

   (b) obtained all other relevant approvals for the Scheme and
has fulfilled any conditions therein, subject however to any
extension or renewal to the Scheme as may be effected by the
Newco with the approval of the relevant authorities and
shareholders of Newco.

Any employee (including the Executive Directors) of the Newco
Group shall be eligible to participate in the Scheme if, as at
the date of the written offer, the employee:

   (a) is a Malaysian citizen and has attained the age of
eighteen (18) years; and

   (b) is employed full time and on the payroll of a company
within the Newco Group (other than a company which is dormant).

The price at which the Eligible Employees of the Newco Group are
entitled to subscribe to the new ordinary shares in Newco
pursuant to the exercise of ESOS Options shall be determined in
accordance with the Policies and Guidelines on Issue/Offer of
Securities issued by the SC, which states that the exercise
price should be at a discount of not more than 10 percent from
the weighted average market price of Newco shares for the five
market days immediately preceding the date of offer of the ESOS
Options, provided that the subscription price shall in no event
be less than the par value of Newco shares.

The new Newco shares to be issued pursuant to the exercise of
the Options under the Proposed ESOS will, upon allotment and
issue, rank pari passu in all respects with the then existing
issued and paid-up Newco shares except that the new Newco shares
so issued will not rank for any rights, dividends, allotments
and/or other distributions, the entitlement date of which
precedes or falls on the relevant exercise date of the Options
and will be subject to all the provisions of the Articles of
Association of Newco.

Proposed Newco Listing

It is proposed that, in conjunction with the Proposals, Newco
will be the new holding company of Cygal Group and will take
over the listing status of Cygal. It is also proposed that Cygal
be delisted from the Official List of the Second Board of the
KLSE and the Newco be admitted to the Official List for the
KLSE, with the listing of the entire issue and paid-up share
capital of Newco on the Second Board of the KLSE.

           Rationale For The Proposals

Proposed Share Exchange and Proposed Newco Listing

The Proposed Share Exchange is to create an organizational
structure whereby the listed company in Cygal Group will be an
investment holding company and its operations will remain at
Cygal and its subsidiaries. This will facilitate better
management and day to day operations of the Newco/Cygal Group.

Proposed Debt Restructuring

The Proposed Debt Restructuring is essential to:

   (i) restore the financial and operational viability of the
Cygal Group and to enable the Group to continue as a going
concern with a view to restore and improve its profitability;

   (ii) enable the FI and non FI creditors to recover amounts
higher than those possible in the event of liquidation; and

   (iii) avoid and mitigate the risk of a break-up situation,
thereby enhancing the long term interest of all the stakeholders
of the Company including shareholders, employees and business
associates.

Proposed Fund Raising

The Proposed Fund Raising is to be undertaken to raise the
necessary funds for the operations of the Cygal Group.

Proposed Acquisitions

The Proposed Acquisitions are expected to enhance and widen the
earnings base of the Newco/ Cygal Group.

Proposed ESOS

The rationale for the Proposed ESOS is as follows:

   (i) to reward and retain Eligible Employees whose services
are vital to the operations and continued growth of the Newco
Group;

   (ii) to provide an incentive for Eligible Employees to
participate more actively in the operations of the Newco Group
and to encourage them to contribute to the future growth of the
Newco Group;

   (iii) to give Eligible Employees a greater sense of ownership
and belonging so that they are motivated to be more productive;
and

   (iv) to increase the level of commitment, dedication and
loyalty amongst Eligible Employees.

Approvals Required

The Proposals (other than the Proposed Fund Raising and Proposed
Acquisitions) are subject to the following approvals being
obtained:

   (i) the SC;

   (ii) the Foreign Investment Committee for the Proposed Share
Exchange and Proposed Debt Restructuring;

   (iii) the KLSE for the following:

      (a) Proposed Newco Listing;

      (b) listing of and quotation for the ICULS A and ICULS B;
and

      (c) listing of and quotation for the new ordinary shares
in Newco to be issued pursuant to the exercise of the ESOS
Options and the conversion of the ICULS A, ICULS B and RCSLS.

   (iv) the shareholders of Cygal at an extraordinary general
meeting (EGM) to be convened;

   (v) the High Court for the Proposed Share Exchange and
Proposed Non FI Scheme; and

   (vi) any other relevant authorities.

Directors' & Major Shareholders' Interests

Datuk Bujang Bin Buyong @ Jislen bin Bagong, JP being the
Executive Chairman, Dato' Seow Yong Chin being the Managing
Director, Syed Zain Al-Kudcy bin Syed Mahmood and Chin Kok Wah
being the Executive Directors of the Company, are entitled to
participate in the Proposed ESOS and are therefore deemed
interested in respect of their respective entitlements under the
Proposed ESOS. The aforesaid Directors have abstained and will
continue to be abstained from all deliberations in respect of
their respective entitlements under the Proposed ESOS at the
relevant meetings of the Board. They will also abstain from
voting in respect of their direct and indirect shareholdings in
Cygal on the ordinary resolutions pertaining to their respective
entitlements under the Proposed ESOS at an EGM to be convened to
consider the Proposed ESOS.

As at 30 March 2001, Datuk Bujang bin Buyong @ Jislen bin Bagon,
JP and Syed Zain Al-Kudcy bin Syed Mahmood respectively hold
30,000 and 978,000 ordinary shares of RM1.00 each in Cygal. In
addition, as at 30 March 2001, Datuk Bujang bin Buyong and
Jislen bin Bagong, JP, Syed Zain Al-Kudcy bin Syed Mahmood and
Dato' Seow Yong Chin are deemed interested in 19,164,086
ordinary shares of RM1.00 each in Cygal held by Cygal Holdings
Sdn. Bhd..

Save as disclosed above, none of the other Directors and major
shareholders of Cygal or any persons connected to the Directors
and major shareholders of Cygal have any interest, direct or
indirect, in the Proposals (other than the Proposed Fund Raising
and Proposed Acquisitions which have not been finalised).

Directors' Statement

Having considered all aspects of the Proposals, the Directors of
Cygal are of the opinion that the Proposals are in the best
interests of the Company.

Adviser

CIMB has been appointed as the adviser to Cygal for the
Proposals.

Application To The Relevant Authorities

Applications to the relevant authorities for the Proposals are
expected to be made within 2 months from the date of
finalization and announcement of the Proposed Fund Raising and
Proposed Acquisitions.

TABLE 2 - INDICATIVE SALIENT TERMS OF THE ICULS A

Issuer: Newco.

Nominal Value: RM1.00.

Issue Price: approximately 91.74 percent of the nominal
value of the ICULS A.

Issue Size: Up to RM140,205,000 nominal value.

Tentative Issue Date: Subject to the execution of the Settlement
Agreement and all relevant approvals.

Tenure: 3 years from the date of issue (inclusive)
of the ICULS A.

Maturity Date: The date falling one business day before the
third (3rd) anniversary from the date of issue of the ICULS A.

Coupon Rate: Nil.

Conversion Rights: Holders will have the right to convert one
(1) ICULS A into one (1) new ordinary share(s) of RM1.00 each in
Newco at the Conversion Price on the Maturity Date.

Conversion Period: On the Maturity Date. If the Maturity Date
falls on a Saturday or Sunday or a public holiday, then it shall
be the preceding business day, on which banks are open in Kuala
Lumpur for the transaction of business.

Conversion Price: Subject to the approvals of and any
condition imposed by the relevant authorities, the conversion
price shall be satisfied by tendering one (1) ICULS A for one
(1) new ordinary share of RM1.00 each in Newco.

Convertibility: All the ICULS A shall be converted by Newco
into new ordinary shares of RM1.00 each on the Maturity Date at
the Conversion Price.
Mode of Conversion : The Conversion Price shall be satisfied by
tendering the requisite nominal value of ICULS A for
cancellation by Newco, at the nominal value of the ICULS A.

Listing: Subject to the approvals of the relevant
parties, application will be made to the KLSE for the listing
and quotation of the ICULS A and the eventual new ordinary
shares of RM1.00 each in Newco arising from the conversion of
the ICULS A.

Redemption: There will not be any redemption of the
ICULS A. Upon expiration of the Tenure of the ICULS A, all
outstanding ICULS A will be mandatory converted into new
ordinary shares in the Newco.

Status: The ICULS A to be issued will be unsecured
and shall as between ICULS A holders thereof, rank pari passu
without any preference or priority amongst themselves.

Status of new ordinary shares: The new ordinary shares of RM1.00
each in Newco to be issued pursuant to the conversion of the
ICULS A shall rank pari passu in all respects with the then
existing ordinary shares of Newco in issue, except that they
shall not be entitled to any rights, dividends, allotment and/or
other distributions which have been announced prior to the date
of issue of the said ordinary shares.

Governing Laws: The laws of Malaysia.

Jurisdiction: The Issuer shall unconditionally and
irrevocably submit to the exclusive jurisdiction of the courts
of Malaysia.

TABLE 3 - INDICATIVE SALIENT TERMS OF ICULS B

Issuer: Newco.

Nominal Value: RM1.00.

Issue Price: 100 percent of the nominal value of the ICULS
B.

Issue Size: Up to RM45,996,000 nominal value.

Tentative Issue Date: Subject to the execution of the Settlement
Agreement, all relevant approvals.

Tenure: 3 years from the date of issue (inclusive) of
the ICULS B.

Maturity Date: The date falling one business day before the
third (3rd) anniversary from the date of issue of the ICULS B.

Coupon Rate : Nil.

Conversion Rights: Holders will have the right to convert two
(2) ICULS B into one (1) new ordinary share(s) of RM1.00 each in
Newco at the Conversion Price on the Maturity Date.

Conversion Period: On the Maturity Date. If the Maturity Date
falls on a Saturday or Sunday or a public holiday, then it shall
be the preceding business day, on which banks are open in Kuala
Lumpur for the transaction of business.

Conversion Price: Subject to the approvals of and any condition
imposed by the relevant authorities, the conversion price shall
be satisfied by tendering two (2) ICULS B for one (1) new
ordinary share of RM1.00 each in Newco.

Convertibility: All the ICULS B shall be converted into new
ordinary shares of RM1.00 each in Newco on the Maturity Date at
the Conversion Price.

Mode of Conversion: The Conversion Price shall be satisfied by
tendering the requisite nominal value of ICULS B for
cancellation by Newco, at the nominal value of the ICULS B.

Listing: Subject to the approvals of the relevant
parties, application will be made to the KLSE for the listing
and quotation of the ICULS B and the eventual new ordinary
shares of RM1.00 each in Newco arising from the conversion of
the ICULS B.

Redemption: There will not be any redemption of the ICULS
B. Upon expiration of the Tenure of the ICULS B, all outstanding
ICULS B will be mandatory converted into new ordinary shares in
Newco.

Status: The ICULS B to be issued will be unsecured
and shall as between ICULS B holders thereof, rank pari passu
without any preference or priority amongst themselves.

Status of new ordinary shares: The new ordinary shares of RM1.00
each in the Newco to be issued pursuant to the conversion of the
ICULS B shall rank pari passu in all respects with the then
existing ordinary shares of Newco in issue, except that they
shall not be entitled to any rights, dividends, allotment and/or
other distributions which have been announced prior to the date
of issue of the said ordinary shares.

Governing Laws: The laws of Malaysia.

Jurisdiction: The Issuer shall unconditionally and
irrevocably submit to the exclusive jurisdiction of the courts
of Malaysia.

TABLE 4 - INDICATIVE SALIENT TERMS OF THE RCSLS

Issuer: Newco.

Nominal Value: RM1.00.

Issue Price: 100 percent of the nominal value of the RCSLS.

Issue Size: Up to RM82,238,000 nominal value.

Tentative Issue Date: Subject to the execution of the Settlement
Agreement and the approval of all relevant parties.

Tenure: 5 years from the date of issue (inclusive) of
the RCSLS.

Maturity Date: The date falling one business day before the
fifth (5th) anniversary from the date of issue of the RCSLS.

Coupon Rate: 3.0 percent per annum, to be paid annually.

Redemption: Newco shall have the option to redeem the
RCSLS at any time during the tenure of the RCSLS on the basis of
RM1.00 for every RM1.00 nominal value of RCSLS. Minimum amount
to be redeemed is RM15 Million (Minimum Redemption Amount).

Security: The RCSLS will be secured by a charge over Lot
6019, Mukim of Senai, Kulai, District of Johor Bharu. Should the
redemption of the RCSLS be less than the minimum amount, the
security can be sold and the proceeds utilized to repay the
shortfall of the Minimum Redemption Amount.

Conversion Rights: Holders will have the right to convert one
(1) RCSLS into one (1) new ordinary share(s) of RM1.00 each in
Newco on the Maturity Date at the Conversion Price.

Conversion Period: On the Maturity Date. If the Maturity Date
falls on a Saturday or Sunday or a public holiday, then it shall
be the preceding business day, on which banks are open in Kuala
Lumpur for the transaction of business.

Conversion Price: Subject to the approvals of and any condition
imposed by the relevant authorities, the conversion price shall
be satisfied by tendering one (1) RCSLS of RM1.00 value for one
(1) new ordinary share of RM1.00 each in Newco.

Convertibility: All outstanding RCSLS shall be converted into
new ordinary shares of RM1.00 each on the Maturity Date at the
Conversion Price.

Mode of Conversion: The Conversion Price shall be satisfied by
tendering the requisite number of RCSLS for cancellation by
Newco, at the nominal value of the RCSLS.

TABLE 4 - INDICATIVE SALIENT TERMS OF THE RCSLS (cont'd)

Form and Denomination: The RCSLS will be issued in bearer form
and constituted by a trust deed to be executed between the
Issuer and a trustee.

Subject to (1) the Code of Conduct and Market Practices for the
Malaysian Corporate Bond Market issued by the Institut Peniaga
Bon Malaysia (IPBM) and approved by Bank Negara Malaysia (BNM)
and (2) the Code of Conduct and Market Practices for Malaysian
Scripless Securities Market under the "Real Time Electronic
Transfer of Funds and Securities (RENTAS) system issued by BNM,
or their replacement thereof (collectively "the Code of
Conduct") applicable from time to time, the RCSLS shall be
issued in bearer form and in multiples of RM1.00 and constituted
by a trust deed to be executed by the Issuer and the Trustee.

Listing: The RCSLS will not be listed on the KLSE.

Status of new ordinary shares: The new ordinary shares of RM1.00
each in Newco to be issued pursuant to the conversion of the
RCSLS shall rank pari passu in all respects with the then
existing ordinary shares of Newco in issue, except that they
shall not be entitled to any rights, dividends, allotment and/or
other distributions which have been announced prior to the date
of issue of the said ordinary shares.

Governing Laws: The laws of Malaysia.

Jurisdiction: The Issuer shall unconditionally and
irrevocably submit to the exclusive jurisdiction of the courts
of Malaysia.


KL INDUSTRIES: Moratorium Extended
----------------------------------
Kuala Lumpur Industries Holdings Berhad said the moratorium
under Section 41 of the Pengurusan Danaharta Nasional Berhad Act
1998 (the Act), which took effect from 30 June 2000 has been
extended to 29 June 2002 pursuant to Section 41(3) of the Act.
During the period of the moratorium, no creditor may take action
against the Company except in accordance with Section 41 of the
Act.

Early in May, the Company announced that its Special
Administrators were finalizing the workout proposals of the
company and four affected subsidiary companies for submission to
Pengurusan Danaharta Nasional Berhad.


PROJEK USAHASAMA: Still In Default
----------------------------------
Renong Berhad revealed that, further to the announcement made on
31 May 2001, Projek Usahasama Transit Automatik Sdn Bhd (PUTRA)
has remained in default on its interest servicing obligations in
respect of its RM2.0-billion Commercial Financing Facilities.

The outstanding interest/profit payment as at 28 June 2001 is
RM341.7 million.

On 20 April 2001, PUTRA has requested for the indulgence from
its financiers to extend the moratorium period on the
interest/profit payments and to waive the penalty margin of 1%
per annum (where applicable) on all interest/profit payments
outstanding for the period beginning 30 September 1999 until
PUTRA's Proposed Debt Restructuring Scheme is in place. The
decision from the financiers on this matter is still pending.

Currently, PUTRA is working closely with the relevant agencies
on the Scheme.


SPORTMA CORP: Three Units Wound Up
----------------------------------
The Special Administrators of Sportma Corporation Berhad
(Special Administrators Appointed) [SCB] wish to announce that
the following subsidiary companies have been wound up by way of
members' voluntary liquidation on 28 June 2001:

Name of Subsidiary

Sportma Sporting Goods Sdn Bhd
Sportma Medicare Sdn Bhd
Sportma Food Industries Sdn Bhd

Siew Kah Toong has been appointed as liquidator of the
abovementioned companies.

The liquidation of the abovementioned subsidiary companies is
not expected to have any financial or operational impact on SCB,
as the subsidiary companies have yet to commence operation since
incorporation.


TAI WAH: Submits Revised Financial Projections
----------------------------------------------
On 22 June 2001, Tai Wah Garments Manufacturing Berhad submitted
a revised financial projections for years ending/ended 30 April
2001 to 2004 to the Securities Commission (SC) for its
consideration. The Company needed to revise the financial
projections in view of the change in the economic environment.

As the Company does not foresee its ability to regularize its
financial condition by 23 June 2001, i.e. four months time frame
as stipulated in paragraph 5.1 (c) of PN 4, the Company has
written to the KLSE to request for an extension of time to
regularize the Company's financial condition by 31 August 2001.

The extension of time requested is based on a tentative
timetable prepared by the Company's merchant bankers, Perdana
Merchant Bankers Berhad.

Meanwhile, the High Court of Shah Alam has on 11 June 2001
sanctioned the results of the formal Section 176 creditors'
meeting without any modifications or variations.


TECHNO ASIA: Posts Auditors Qualification Re Annual Report
----------------------------------------------------------
Techno Asia Holdings Berhad (formerly Westmont Land Asia Berhad)
posts the detailed explanations on the qualifications stated in
the Auditors' Report of the Annual Report 2000, as follows:

The Special Administrators of the Company and eight other
subsidiaries as detailed under Qualification No. 1 have no
personal knowledge of the events and transactions relating to
Qualifications Nos. 2 to 6 as these pertain to events and
transactions covering the period prior to the appointment of the
Special Administrators.

Furthermore, the figures reported in the financial statements of
the Group and the Company for the period under review are
subject to the carry over effects of past transactions. The
Special Administrators are unable to take responsibility for the
completeness or accuracy of the accounting records in relation
to those matters, which the Special Administrators do not have
personal knowledge, and such responsibility remain with the
respective directors who held office during the material time.

Qualification No. 1

The appointment of Mr. Lim Tian Huat and Mr. Chew Cheng Leong of
Messrs. Arthur Andersen & Co. as Special Administrators over the
Company and eight subsidiaries is confirmed. Special
Administrators were appointed over the Company and Prima Mould
Manufacturing Sdn. Bhd. (formerly known as Techno Asia Sdn.
Bhd.) (Special Administrators Appointed) by Pengurusan Danaharta
Nasional Berhad (Danaharta) on 2 February 2001.

On 30 April, 2001, Danaharta further appointed Special
Administrators over the following subsidiaries:

ú Mount Austin Properties Sdn. Bhd. (formerly known as Westmont
Mount Austin Sdn. Bhd.)

ú Techno Asia Venture Capital Sdn. Bhd. (formerly known as
Westmont Venture Capital Sdn. Bhd.)

ú Wisma Dindings Sdn. Bhd.

ú Cempaka Sepakat Sdn. Bhd.

ú Ganda Plantations (Perak) Sdn. Bhd.


ú Ganda Edible Oils Sdn. Bhd.

ú Litang Plantations Sdn. Bhd.

The Special Administrators have on 20 April 2001 invited
proposals from any interested parties with credible asset
backing and relevant management expertise to participate in the
restructuring of the Company.

The proposals received from all interested parties following the
close of the tender period on 11 May 2001 are being evaluated by
the Special Administrators to facilitate a workout proposal to
be developed.

The workout proposal would be subject to an examination by an
Independent Adviser, whose role is to review the reasonableness
of the proposal, taking into consideration the interests of all
creditors (whether secured or unsecured) and shareholders.

The outcome of the workout proposal may involve changes to the
amount and classification of certain balance sheet items.

Qualification  No. 2

The losses, net current liabilities and deficit shareholders'
funds recorded by the Group and Company for the year ended 31
December, 2000 are primarily attributable to the following:

ú Finance costs associated with the borrowings of the Group and
Company

ú Write off of cost of investment in a bank in Uganda

ú Provision for doubtful debts had been made in respect of
outstanding receivables due from related and third parties

ú Provision for diminution in value of an unquoted investment in
a subsidiary

The ability of the Company to continue as a going concern is
dependent on the successful outcome of the workout proposal
being developed by the Special Administrators.

Qualification No. 3

Other receivables of RM92.2 million comprise primarily of
amounts owing by an associated company and several third
parties. Enquiries are being made to establish the
recoverability of these receivables and, where appropriate, the
Special Administrators have referred certain matters to the
Company's solicitors for their further action.

Qualification No. 4

The Special Administrators are currently liaising with the
Company's solicitors on record as to the merits of a claim made
against the Company by a bank in Uganda to establish the
likelihood of this claim crystallizing in the books of the
Company.

Qualification No. 5

Enquiries are being made by Special Administrators to establish
the nature of the claim and the status of the repayment
obligations of the former director in order to confirm if this
contingent liability against the Company will materialize. As at
31 December 2000, this liability had not crystallized for
payment by the Company in its books of accounts.

Qualification No. 6

As the auditors of the subsidiary did not observe the stocktake
of the inventories located at the power barge which operates in
the Dominican Republic, they are unable to satisfy themselves as
to the quantities of inventories stated.

Qualification No. 7

The Special Administrators have facilitated the process for the
audit of the Company's financial statements for the year ended
31 December 2000 to be completed. It was considered appropriate
for the Board of Directors of the Company to ensure the audited
accounts for the subsidiaries are approved.

This matter was not attended to prior to the deadline of 30
April 2001 for submission of the audited accounts of the Company
to the Kuala Lumpur Stock Exchange.

In the circumstances, the Special Administrators have taken
steps for the accounts of Prima Moulds Manufacturing Sdn. Bhd.
(formerly known as Techno Asia Sdn. Bhd.)(Special Administrators
Appointed), Prima Moulds Sdn. Bhd., Westmont Offshore Sdn. Bhd.
and Westmont Power (Kenya) Limited to be adopted. As regard to
an associated company of the Company, namely Westmont Power
(Bangladesh) Limited, however, the Special Administrators have
not received any notice from its Board of Directors confirming
the audited accounts have been approved and adopted.

Qualification No. 8

A Letter of Representations in the form and context requested
from the Special Administrators was not provided in respect of
the period subsequent to the appointment of Special
Administrators as the Special Administrators have not had
sufficient opportunity to determine at this point of our
administration if there are circumstances which may require
material adjustments to the accounts of the Company.

Hence, the Special Administrators considered it inappropriate to
provide the Letter of Representations in the form and context
requested.


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


BAYAN TELECOMS: No Legal Blunder, Benpres Says
----------------------------------------------
A news article entitled "BayanTel loses cellular license on
legal blunder" published in the 25 June 2001 issue of Business
World, reported "Bayan Telecommunications, Inc. (BayanTel) has
lost its cellular license due to a legal blooper. The Supreme
Court second division has denied its petition to review last
year's ruling of the Court of Appeals (CA) revoking the firm's
permit to construct, install, operate and maintain a nationwide
cellular mobile telephone service (CMTS) for failing to strictly
follow court rules on appealing cases."

Benpres Holdings Corporation (BPC), the parent firm of Bayantel,
clarified that:

"We wish to advise you that the said news article was erroneous
in that:

   1) the Supreme Court (Second Division) has not denied
BayanTel's petition for review of the Court of Appeals' ruling
revoking the company's permit to construct, install, operate and
maintain a nationwide cellular mobile telephone service, and

   2) there was no legal blunder.

"With respect to the first, the Resolution issued by the Supreme
Court dated 16 April 2001, denied BayanTel's motion for
extension of time to file a petition for review, not the
petition for review itself, which was already filed with the
Supreme Court on 11 April 2001. After receipt of the said
Resolution (of 16 April 2001), BayanTel has not received any
other resolution/order from the Supreme Court. Hence, BayanTel's
petition for review is still pending with the Supreme Court.

"With respect to the alleged `legal blooper', we reiterate that
there was none. The Resolution (of 16 April 2001) which denied
BayanTel's motion for extension of time to file petition for
review states the reason for the denial as follows: `lack of
statement of the dates of receipt of the assailed judgment of
the Court of Appeals and of filing of the motion for
reconsideration of said judgment,' citing Rule 45 Section 2 of
the 1997 Rules of Procedure.

"After receipt by BayanTel of the questioned Resolution (dated
16 April 2001) on 22 May 2001, BayanTel immediately filed on the
following day (May 23) a motion for reconsideration of the said
Resolution stating therein that the Resolution was erroneous
because:

   1. Contrary to the Resolution, BayanTel's motion for
extension clearly showed that it has not lost the fifteen (15)
day reglementary period within which to appeal when it stated in
paragraph 1 of its motion that:

     `1. It has until 13 March 2001 within which to file its
Petition for Review considering that a copy of the Resolution of
the Court of Appeals denying its Motion for Reconsideration was
received on 26 February 2001.'

     The motion for extension was thus filed on time because it
shows on its face that it was filed on 13 March 2001.

   2. Section 2, Rule 45 of the 1997 Rules of Civil Procedure
which provides:

      `SEC. 2 Time for filing; extension. The petition shall be
filed within fifteen (15) days from notice of judgment or final
order or resolution appealed from, or of the denial of the
petitioner's motion for new trial or reconsideration filed in
due time after notice of the judgment. On motion duly filed an
served, with full payment of the docket and other lawful fees
and the deposit for costs before the expiration of the
reglementary period, the Supreme Court may be for justifiable
reasons grant an extension of thirty (30) days only within which
to file the petition.'

   This does not require that a motion for extension of time to
file petition for review should state the dates of receipt of
the assailed judgment of the Court of Appeals and of the date of
the filing of the motion for reconsideration. It is in the very
petition where the material dates should be stated.

   3. BayanTel has already filed its Petition for Review on 11
April 2001, prior to the issuance of the Resolution in question
on 16 April 2001. In said Petition for Review, all the material
dates were stated therein.

   The motion for reconsideration has not been resolved by the
Supreme Court.

   It must be pointed out that the Supreme Court usually grants
extensions of 30 days to file petitions for review `conditioned
upon the timeliness of its filing.'

   It is also significant to note that the Office of the
Solicitor General, representing the National Telecommunications
Commission (NTC), also filed a petition for review with the
Supreme Court questioning the same Court of Appeals' ruling
revoking the authority granted by NTC to BayanTel to maintain
and operate a cellular phone service. The case is docketed as
Case No. G.R. 147096 and pending with the First Division of the
Supreme Court."


FAIRMONT HOLDINGS: Clarifies Stock Rights Offer
-----------------------------------------------
The Circular for Brokers No. 1653-2001 dated 25 June 2001 in
connection with Megaworld Corporation's (MEG) disclosure stated
that:

"The management of Fairmont Holdings, Inc. is considering a One
Billion rights issue to be implemented, hopefully, in the next
five (5) months and that the proceeds of the rights issue will
be used to finance Fairmont's mass housing business."

Fairmont Holdings, Inc., in clarification of the aforementioned
disclosure, stated that:

"We confirm that Fairmont Holdings, Inc. is considering a One
Billion rights issue which it seeks to implement in the next
five (5) months. The encouraging prospects of the mass housing
sector combined with the new administration's retention of mass
housing in its list of priorities has spurred Fairmont to
reconsider its previous stand of putting on hold the stock
rights project of its previous management.

"After a careful study of its options, the present management of
Fairmont now feels that a stock rights offering may be the only
viable way of financing Fairmont's initial venture into mass
housing development."


MONDRAGON LEISURE: CDC Sanctions Financial Records Access
---------------------------------------------------------
Mondragon International Philippines, Inc. (the Company)
announced that Clark Development Corporation (CDC) has granted
Mondragon Leisure and Resorts Corporation (MLRC) the authority
to have access to its financial records.

The Company said: "Today we are happy to inform you that we have
been granted, by the new management of CDC, the authority to
have access to our financial records."

In relation thereto, the Company submitted CDC's letter to the
Exchange dated 21 June 2001, which reads as follows:

"Please be informed that we have given MLRC the authority to
have access on their financial records, as well as that of their
subsidiaries, situated at the Mimosa Leisure Estate in Clark. We
have assigned our authorized representatives to oversee and
assist in the retrieval of these records to establish proper
endorsement to the MLRC's external auditor, Joaquin Cunanan &
Co., for the preparation of their financial statement.

"We regret that previous requests of MLRC regarding the above
matter were not acted upon in the past."


PILIPINO TELEPHONE: PLDT Transfers 208M Shares To Advisors
----------------------------------------------------------
Philippine Long Distance Telephone Company (PLDT) announced that
it has transferred a total of 208 million shares of common stock
of Pilipino Telephone Corporation (Piltel), owned by and
registered in PLDT's name, to certain financial advisors of
Piltel.

The share transfers were effected for the purpose of settling,
for and on behalf of Piltel, part of the fees owing to said
advisors in connection with the Piltel Debt Restructuring.

Such shares represent 12.29 percent of the outstanding common
shares of Piltel.


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


ACMA LIMITED: OUB, Maybank Offer Loans To Repay Bonds
-----------------------------------------------------
Acma Ltd (the Company) revealed that on 28 June 2001 the company
accepted letters of offer from Overseas Union Bank Limited (OUB)
and Malayan Banking Berhad (Maybank) for a term loan amounting
to S$50 million and a bridging loan amounting to a further S$50
million. Both OUB and Maybank will participate equally in the
Loans.

The Loans are taken to finance the repayment of its S$100
million Bonds 2001 upon their maturity on 1 August 2001. The
disbursement of the Loans is subject to shareholders' approval
of the Company's proposed rights issue which it announced on 25
May 2001 (the Rights Issue).

The Rights Issue is expected to raise between S$56 million and
S$70 million and the S$50 million bridging loan will be repaid
from the proceeds of the proposed Rights Issue. The S$50 million
term loan will be repayable over a period of 5 years, with
repayment commencing 18 months from the date of first drawdown.

The Company expects to finalize and complete all documentation
in relation to the Loans before 1st August 2001. With these
Loans in place and subject to shareholders' approval being
obtained for the proposed Rights Issue, the Company will be able
to meet its entire obligations in respect of its S$100 million
Bonds 2001.

Both OUB and Maybank have been the Group's principal bankers
since 1990.

OUB is also acting as the lead manager and main underwriter for
the Rights Issue.


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


SIKARIN PUBLIC: Shareholders' Approve Delisting Plan
----------------------------------------------------
Sikarin Public Company Limited announces the Shareholders'
resolution made at no.23 hold on June 29,2001 as follows:

   1. To certify the minutes of the ordinary general meeting of
shareholder no 22.

   2. To reappoint the following members of the Board of
Directors after their retirement:

          1. Mr. Wichai Tongtang

          2. Mr. ATT Tongtang

          3. Mr. Perasak Pisolyabutr

   3. To approve the company balance sheets and profit and loss
statement as at
December 31,2000.

   4. To appoint BDO Richfield Limited By Mr.Boonsri
Techavarutama and
Mr.Anurak lelapiyamitr  as company auditor of 2001. The company
must pay no higher than 1,500,000 baht per year.

   5. More than three-fourths of shares voted to approve the
delisting, rehabilitation plan.


SVOA PUBLIC: Asset Plus Renders Opinion Re Tender Offer
-------------------------------------------------------
SVOA Public Company Limited (SVOA or the Company) received the
amendment or additional information (Form 247-6) from Mr. Min
Intanate (Offeror), which was prepared by Thai Sakura Securities
Company Limited dated 21 June 2001. The said amendment concerned
with the offered price per share from Bt7.00 to Bt7.50 whereas
other conditions being unchanged, and this offer is the final
offer and cannot be amended further.

Asset Plus Securities Company Limited (Asset Plus), the
financial adviser of the company's shareholders, has considered
the amendment of the offer and opined that this amendment will
provide more benefits to shareholders.

The offered price is comparatively higher than the fair value of
SVOA shares assessed earlier by Bt0.96 to Bt2.60 per share as
summarized below (details of business assessment of SVOA shares
by various approaches have been shown in the Opinion of
Independent Financial Advisor on the Tender Offer dated 15 June
2001):

Valuation approaches    Assessed value  Premium over assessed
        per share(Baht) value (Baht)

Discounted cash flow    6.50    1.00
Adjusted book value     6.54    0.96
Price to book value     4.90    2.60

Furthermore, considering the sufficiency of funds for making a
Tender Offer under this amended offer against the letter of
confirmation of US$2,200,000 funds making available for the
tender offer issued by Citibank N.A. of Singapore, Asset Plus
has opined that this fund is sufficient for fulfilling the
tender offer under this amended offer.

Asset Plus would like to reconfirm the Opinion of Independent
Financial Advisor on the Tender Offer dated 15 June 2001 that
the shareholders should accept this Tender Offer.

Asset Plus hereby certifies that it has rendered its opinion
relevant to the tender offer with due care in accordance with
the professional standard, taking into account the interest of
the shareholders. However, the shareholders should carefully
make decision either to accept or reject the tender offer by
taking each shareholder's investment objective and constraints
into consideration.


THAI PETROCHEM: Mortgage Documentation Registration Ongoing
-----------------------------------------------------------
Thai Petrochemical Industry Public Company Limited (TPI)
announces that the registrations of the mortgage documentation
is continuing, and are all expected to be completed by the end
of this month. The rest of the summary of the progress report,
prepared by TPI Plan Administrator (PA) Executive Planners
Limited, of TPI's plan implementation is as follows:

1. Administration

Inter-Creditor Deed

   At the time of writing, the Inter-Creditor Deed was unsigned
by six Creditors representing around 5 percent of the required
signatories less than 1 percent of the total principal debt.

Guarantee Confirmations

   The providers of guarantees (as listed in Schedule 6 of the
Plan) failed to provide the guarantee confirmations required
under s.2.2(c)(iii) of the Plan that were due on 3 May 2001.

   The Creditors have resolved to waive the resulting default.

2. Initial Payment

   The members of the TPI Group Creditors' Steering Committee
(the CSC) have continued the deferment of their entitlements of
the interest component of the initial payment in order to
support TPI pending receipt of additional working capital
facilities. These amounts total approximately US$25 billion.

3. Interest

   Tier (i) interest for the period of March to May 2001 was
remitted in full to all Creditors on 29 March 2001, 27 April
2001, and 1 June 2001, respectively, detailed as follow.

March
Currency        Amount (unit: million)
Thai Baht            199.98
US Dollars             5.20
Yen                   12.03
Euros                  0.15

April
Currency      Amount (unit: million)
Thai Baht            205.26
US Dollars             5.31
Yen                   11.63
Euros                  0.15

May
Currency     Amount (unit: million)
Thai Baht            230.18
US Dollars             4.76
Yen                   11.02
Euros                  0.16

   Note that in cases where principal amounts were not yet
adjudicated by the Official Receiver the Plan Administrator (PA)
used principal balances as confirmed with the relevant
creditors.

   Due to continuing cash flow constraints, Tier (ii) interest
for the period of March to May 2001 has been accrued.

4. Finalization of Creditors Claims

   Principal Confirmations

      Six of the seventy-two principal balances, which need to
be confirmed, remain in dispute.

      Please note that the principal balances used to calculate
the debt to equity conversion are still subject to change. It
follows that the equity allocations may be adjusted after the
adjudication process is complete.

   Adjudication of Total Claim Amounts

      At the date of writing there remained sixty-four claims
under adjudication by the Official Receiver.

5. Asset Sales

   Power Assets

      A document seeking expressions of interest in making an
investment in TPI's power plant (the Plant) was distributed to a
group of approximately 45 potential investors on 11 June 2001.
Expressions of interest are sought by 9 July 2001. A detailed
Information Memorandum will then be provided to select investors
on 16 July 2001.

      The CSC has approved the establishment of a new TPI
subsidiary. The new subsidiary will be called Rayong Energy
Company Limited (RECL) and its incorporation is likely to be
finalized by the end of June or early July 2001. It is intended
that the Plant assets will be transferred to RECL prior to a
sale of its shares to the incoming investor.

   TPI Polene Debt

      The PA has concluded a preliminary agreement to sell the
Bt2.446 billion of inter-company debt owed by TPI Polene PCL to
TPI, along with TPI's equity stake in two associated companies
of TPI. The expected proceeds of these asset disposals amount to
Bt1.273 billion, or approximately US$28.3 million.

      As required by the Plan, the consent of the CSC has been
granted for these transactions to proceed.

      The PA is now working towards the conclusion of
documentation.

   Real Estate Assets

      The PA has executed formal mandate letters with FPD
Savills (FPDS) to act as the agent for the sale of certain TPI
properties as previously identified in the FPDS report of 9
April 2001.  FPDS estimates a six-week lead time for the
production of marketing material before marketing of the
properties can begin.

   General

      The PA has issued a formal offer for the sale of three
specialist chemical storage tanks, currently owned by TPI, to
the shareholders of two associated companies of TPI.


THAI TELEPHONE: Reaches Deal With Creditors Re Debt Workout
-----------------------------------------------------------
On June 29, 2001, Thai Telephone & Telecommunication Public
Company Limited (TT&T or the Company) and its creditors reached
mutual arrangements and signed the Restructuring Agreements to
restructure the Company's debts and payables totaling Bt40,636
million as specified in TT&T's Business Reorganization Plan.

The framework for the Agreements was negotiated pursuant to the
timetable and procedures as set out by the Corporate Debt
Restructuring Advisory Committee (CDRAC) and such framework was
approved by a majority of the Company's creditors in a meeting
on March 1, 2000.

The Company subsequently filed a petition to restructure its
debts and payables with the Central Bankruptcy Court on April 7,
2000 and the Plan was approved by a majority of the Company's
creditors on December 21, 2000 subject to the approval of final
documentation of the Agreements by the Steering Committee of the
creditors.

The Central Bankruptcy Court approved the Plan on December 27,
2000. The signing of the Agreements satisfies a major
outstanding condition to the final implementation of the
Company's business reorganization. The Company expects to close
the transaction in the near future.

As of December 31, 2000 TT&T had total equivalent restructured
debts and payables of approximately Bt40,636. Of this amount,
Bt25,164 million equivalent in debts are owed to financial
creditors. Bt8,077 million equivalent of this amount are owed to
its major suppliers of equipment and services. A total of
Bt7,163 million equivalent are owed to related parties and a
total of Bt232 million to small suppliers.

The Agreements call for the balance equivalent debt of Bt33,240
million to be restructured into Bt20,606 million equivalent in
Tranche A Loans, Bt6,018 million equivalent in Tranche B Loans
and Bt6,616 million equivalent in Tranche C Loans.

Tranche A Loans have a term of approximately 11.5 years which
includes 1.5 years grace period. Interest on Tranche A Loans is
to be paid currently on a monthly basis.

Tranche B Loans have a term of approximately 13 years including
a grace period of approximately 11.5 years. Tranche B interest
is to be paid monthly, but may be capitalized in an amount
equivalent to 18 months of interest without triggering a
default.

Tranche C Loans have a term of 17.5 years with a 14-year grace
period. Premium accrues on the Tranche C Loans but is not
payable until redemption. Tranche C Loans are subject to
repurchase by the Company with the proceeds of new equity to be
raised pursuant to the new equity raising process described
below.

In lieu of converting a pro-rata amount of loans into Tranche C
Loans, the secured lenders and major suppliers have elected to
convert Bt1,000 million of a portion of their loans directly
into ordinary shares at the same price and on the same terms as
the related parties at the closing of the restructuring. Such
amount represents the maximum amount of debts that may be
converted into common equity under the Plan.

All accounts payable to, and subordinated loans from, the
related parties in the aggregate of Bt7,163 million will be
converted into ordinary shares of the Company at the conversion
price of Bt4.85 per share. Small suppliers claim Bt232 million
will be paid by the Company either in cash at the Closing Date
at a 35 percent discount or in 100 equal monthly payments with
no interest.

Besides, restructuring plan warrants in an amount equal to 10%
of the total grossed-up number of ordinary shares in the Company
outstanding on the Closing Date will be issued as part of the
Agreements to the financial creditors, the major suppliers and
the Company's existing shareholders. Lenders will be granted 50
percent of such warrants with the balance distributed to the
existing shareholders. These warrants will be exercisable until
5 years after the date of issue. Such warrants can only be
exercised by means of a cash payment to the Company.

As part of the Agreements, TT&T undertakes to raise new common
equity in the aggregate amount of Bt5,000 million with a minimum
Bt3,000  million in cash to be used for debt repurchase within a
period of 2.5 years from the closing of the restructuring,
pursuant to a process as mutually agreed. A portion of the
proceeds of the new equity shall be used for capital expenditure
in order to enable the Company to compete effectively in a
deregulated environment.

If the equity search process does not produce the required
amount of new equity by the dates which are 24 and 30 months
after the Closing Date, the Company shall issue to each holder
of Tranche C Loans additional warrants at such times. The
exercise price for such warrants shall be market-based, but in
no event lower than Bt10.

The Company is being advised in the restructuring process by The
Kensington Group as financial advisor and Milbank, Tweed,
Hadley & McCloy and International Legal Counselors Thailand
Ltd. as legal advisors. The Secured Lenders' Committee was
advised by PricewaterhouseCooopers as financial advisor and
Linklaters (Thailand) Ltd. as legal advisors.


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

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

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