/raid1/www/Hosts/bankrupt/TCRAP_Public/010710.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   A S I A   P A C I F I C

            Tuesday, July 10, 2001, Vol. 4, No. 133


                         Headlines



A U S T R A L I A

ALPHA HEALTHCARE: Ramsay Raises Interest To 91.4%
ALPHA HEALTHCARE: Ramsay Increases Holding
ANACONDA NICKEL: Reports On Murrin Murrin June Operation
HUTCHINGS & TINDALL: Wound Up, Promoters Banned For Life
LATERAL TRADING: Former Directors Jailed
MTM ENTERTAINMENT: Babcock & Brown Raises Holding
MTM ENTERTAINMENT: Babcock & Brown Acquires More Shares
MTM ENTERTAINMENT: MTM Funds Posts Second Target Statement
NORMANS WINES: Heads Agreement For Merger Reform Extended
PASMINCO LIMITED: S&P Lowers Long-Term Rating To `BB-'
URBAN ENERGY: Placed In Administration


C H I N A   &   H O N G  K O N G

CENTURY INTERNATIONAL: Winding Up Petition Slated For Hearing
CIL HOLDINGS: Trading Suspended
EASTART FAR EAST: Winding Up Petition To Be Heard
EASTECH INDUSTRIES: Hearing of Winding Up Petition Set
EXCEL-MAX: Winding Up Petition Hearing Set
HIGHRULE LIMITED: Winding Up Petition Set For Hearing
PACIFIC CENTURY: Roadshow To Market Bond Issue Begins


I N D O N E S I A

BANK INTERNASIONAL: Possible Ratings Downgrade Ahead
BANK INTERNASIONAL: Sells Stake to Fuji Limited
WICAKSANA OVERSEAS: Reports Rp73.7B net loss in Q1


J A P A N

DAIEI INC: Unit Ties Up With Fuji Soft
DAI-ICHI MUTUAL: Tie-up Earns For Yasuda Fire Y4B
MYCAL CORP: Ba3 Ratings For Possible Downgrade, Moody's Says


K O R E A

GWANGJU BANK: KDIC To Inject Public Fund
HANVIT BANK: To Get W1.87T In Bailout Funds From KDIC
HYUNDAI ENGINEERING: Refuses To Give Up Stake In Unit
HYUNDAI PETROCHEM: Seosan Plant Shut Down Likely
KOREA LIFE: Merrill Lynch To Send Sale Guide Book
SSANGYONG FIRE: Sam-Ai Sells Stocks Block


M A L A Y S I A

BESCORP INDUSTRIES: Default Due To Cashflow Constraints
GROUP STEEL: RAM Assigns AAA(bg) On BG ABBA Bonds
KILANG PAPAN: Applies For Extension For Plan Submission
L&M CORP: Default Payments Now At RM189.2M
LION CORP: RAM Affirms A3(bg) Rating
OMEGA HOLDINGS: Negotiations With Creditor Banks Underway
PARIT PERAK: Reports Term of Agreement With Bentaniaga
RAHMAN HYDRAULIC: Gets Notice Of Mention Of Case
S&P FOOD: Seeking Shareholders Workout Approval


P H I L I P P I N E S

NATIONAL POWER: Selling Sub-transmission Assets To Meralco
RFM CORP: Assures Bondholders To Meet Obligations
URBANCORP: SEC Grants 60-Day Reprieve


S I N G A P O R E

GOLDEN AGRI: Calls Off Alliance With Cargill Asia
HO WAH GENTING: Shares Trading Suspended
L&M GROUP: Seeks Options To Raise Capital


T H A I L A N D

SAMART CORP: Posts EGM Resolutions
SIKARIN PUBLIC: Announces Summary Of Rehab Plan
TPI POLENE: Reports Progress Of Equity Raising

     -  -  -  -  -  -  -  -

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


ALPHA HEALTHCARE: Ramsay Raises Interest To 91.4%
-------------------------------------------------
Ramsay Centauri Pty Limited increased its relevant interest in
Alpha Healthcare Limited on 05 July 2001, from 40,775,948
ordinary shares (90.4 percent) to 41,229,083 ordinary shares
(91.4 percent).

Alpha Healthcare started last year selling and leasing back the
bulk of its private hospitals to mend its debt-laden balance
sheet.

Last year, the $30 million sale of four NSW private hospitals to
Australian Unity Healthcare Property Trust, an unlisted
fund owned by the Australian Unity health fund, will remove
most of Alpha's debt burden. The fund will issue a
prospectus to allow retail investors to invest in the $105
million trust.

Alpha's debt includes a $13 million loan from building
materials company James Hardie Industries, the $7.5 million
balance owing on a convertible note held by Alpha's troubled
former major shareholder, Sun Healthcare, and other bank debt.
Sun went into Chapter 11 bankruptcy protection in 1999.


ALPHA HEALTHCARE: Ramsay Increases Holding
------------------------------------------
Ramsay Centauri Pty Limited increased its relevant interest in
Alpha Healthcare Limited on 6 July 2001, from 41,229,083
ordinary shares (91.4 percent) to 41,695,909 ordinary shares
(92.4 percent).


ANACONDA NICKEL: Reports On Murrin Murrin June Operation
--------------------------------------------------------
Anaconda Nickel Limited reports that the Murrin-Murrin
operational performance for the month of June consisted of
nickel production of 2075 tons, and Cobalt production of 117
tons.

The month of June saw a slow start due to the effects of last
months planned acid plant shutdown and autoclave maintenance
schedules.

Performance picked up markedly through the month and culminated
in finishing the month of June and starting the month of July at
a commendable and consistent production rate.

The acid plant operation is stable, however it is still
restricted to @65 percent of capacity at this stage. The
company's continuing to bring in third party acid to supplement
our own acid production. Acid availability is not expected to
restrict Nickel output in July, with production levels
anticipated to build on June performance and match those
achieved in March and April of this year.


HUTCHINGS & TINDALL: Wound Up, Promoters Banned For Life
--------------------------------------------------------
The Australian Securities and Investments Commission (ASIC) has
obtained declarations and orders in the Supreme Court of New
South Wales against James Hutchings and Terrence Tindall, in
relation to the activities of the former Hutchings and Tindall
Partnership which operated from 1998 until late 2000.

The men were also banned from being involved in the management
of a company for life, with the right to apply for a variation
of this order after five years.

On 30 January 2001 ASIC obtained interlocutory orders
restraining Hutchings and Tindall from any further fundraising,
and appointing a receiver over the assets of the Partnership and
the alleged managed investment scheme.

The court found that both Hutchings and Tindall had conducted a
managed investment scheme that had more than 20 members and was
not registered as required under the Corporations Law.

Hutchings and Tindall obtained over $14 million from investors
after promising them high interest rates of between 30 and 50
per cent per annum. It appears that more than $13.5 million of
the funds they received have been lost.

In disqualifying the men from being involved in the management
of a company, Justice Windeyer said that the order was made for
the protection of the community, as there was a risk the men may
use the corporate veil to engage in activities bringing harm to
members of the public.

Both men have applied for a variation of the banning order prior
to it coming into effect, and the matter will be heard on 6
August 2001.

The court also made declarations that Hutchings and Tindall had
contravened a number of other sections of the Corporations Law
including that they had carried on a securities, investment
advice, futures broking and futures advice business without a
license.

Alexander Macintosh of KPMG was appointed receiver over the
business of Hutchings and Tindall Partnership including all
money provided to Messrs Hutchings and Tindall under the managed
investment scheme.

ASIC's enquiries into this matter are continuing.


LATERAL TRADING: Former Directors Jailed
----------------------------------------
David Knott, Chairman of the Australian Securities and Investments Commission (ASIC), described jail terms handed down
Friday for the  [Text deleted July 2, 2015. This paragraph has been edited in accordance with the spent convictions
scheme in Part VIIC of the Crimes Act 1914 (Cth).] former directors of Lateral Trading Limited (Lateral) as an important
precedent.

Lateral was an unlisted public company whose principal activity
was to trade in futures contracts and options over futures.
Lateral and associated companies were placed into liquidation
with the consent of the directors following a winding up
application by ASIC in December 1997.

After pleading guilty to a range of ASIC charges, James Bernard McDonnell has been sentenced to five years jail with a
non-parole period of three years, Ian Thomas Campbell Westcott to three years jail, to serve two years  [Text deleted
July 2, 2015. This paragraph has been edited in accordance with the spent convictions scheme in Part VIIC of the Crimes
Act 1914 (Cth).] .

Criminal charges were laid against the directors following a
joint ASIC-Australian Federal Police (AFP) investigation into
the collapse of Lateral in 1997. The matter was prosecuted by
the Commonwealth Director of Public Prosecutions in the County
Court of Victoria.

ASIC's charges included the failure of the three directors to
comply with the continuous disclosure requirements applying to
the prospectus issued by Lateral. The prospectus stated that 70
percent of capital was protected at all times by hedging, and no
supplementary prospectus was issued to disclose when more than
30 percent of the trading capital was lost.

"[Friday's] sentences highlight the seriousness of the
consequences which can follow from failing to observe the
continuous disclosure requirements applying to both listed and
some unlisted companies under the Corporations Law," Knott said.

"Other company directors and managers will no doubt take notice
of this precedent," he said.

The directors' jail sentence included a nine-month term for
their failure to disclose by way of supplementary or replacement
prospectus the loss of more than 30 percent of capital, when the
original prospectus had led investors to believe that 70 percent
of their investments were protected at all times.

The sentences followed guilty pleas from each of the directors
in response to charges of:

   * making improper use of their position as directors of
Lateral, by misappropriating $1.46 million of Lateral funds and
giving those funds to related parties; and

   * failing to disclose to shareholders the loss of more than
30 percent of Lateral's capital (while continuing to accept new
investments of $1.18 million in Lateral). The company's
prospectus had stated that 70 percent of capital was protected
at all times, and no correcting supplementary prospectus was
issued.

McDonnell also pleaded guilty to:

   * the theft of $266,500 from other companies within the
Lateral Group of companies;

   * imposition on the Commonwealth because he failed to declare
directors' fees to the Australian Taxation Office; and

   * inducing investments in KBF Finance Limited by false
statements, those investments totaling approximately $1.1
million.

Westcott also pleaded guilty to the theft of $50,000 of KBF
Finance Limited funds.

"This case involved dishonest non-disclosure of the most serious
kind, which has been reflected in the sentences imposed by the
court," Knott said.

McDonnell was sentenced on six counts, Westcott on four counts [Text deleted July 2, 2015. This paragraph has been
edited in accordance with the spent convictions scheme in Part VIIC of the Crimes Act 1914 (Cth).]

At the time it went into liquidation Lateral had raised
approximately $18 million from approximately 700 investors in
Melbourne, Adelaide, Sydney and Brisbane.


MTM ENTERTAINMENT: Babcock & Brown Raises Holding
-------------------------------------------------
Babcock & Brown Group increased its relevant interest in MTM
Entertainment Trust on 5 July 2001, from 25,127,439 ordinary
units (31.41 percent) to 26,778,512 ordinary units (33.47
percent).


MTM ENTERTAINMENT: Babcock & Brown Acquires More Shares
-------------------------------------------------------
Babcock & Brown Group increased its relevant interest in MTM
Entertainment Trust on 6 July 2001, from 26,778,512 ordinary
shares (33.47 percent) to 28,273,536 ordinary shares (35.34
percent).


MTM ENTERTAINMENT: MTM Funds Posts Second Target Statement
----------------------------------------------------------
This document is the Second Supplementary Target's Statement
made by MTM Funds Management Limited (MTM Funds), as responsible
entity of the MTM Entertainment Trust (MME) under Part 6.5,
Division 4 of the Corporations Law on 4 July 2001 (Supplementary
Target's Statement) which supplements the Target's Statement
dated 13 June 2001 (Target's Statement) lodged with the
Australian Securities & Investments Commission (ASIC) on 15 June
2001 and the first Supplementary target's statement lodged with
ASIC on 3 July 2001 (First Supplementary Target's Statement).

This Second Supplementary Target's Statement is to be read
together with the Target's Statement and includes and amends the
First Supplementary Target's Statement by including the letter
agreement between Babcock & Brown and MTM Funds dated 5 July
2001 in Schedule 3 and by stating that the Rights Issue will be
a non-renounceable rights issue and that the underwriting fee
payable to Babcock & Brown will be 5.7143 percent of the sum
underwritten.

It also notes that the Offer was declared unconditional by
Sunderton on 5 July 2001, at which time the voting power of
Sunderton was 32.2 percent. These changes to the First
Supplementary Target's Statement have been incorporated into one
document for ease of reference.

MTM Funds wishes to update you in relation to matters in the
context of the takeover bid by Sunderton Pty Limited for all of
the units in MME. Terms in this document have the same meaning
as in the Target's Statement.

1. Status Of Offer

1.1 Offer Unconditional

   Sunderton declared its takeover bid for MME unconditional on
5 July
2001. At 5 July 2001 Sunderton's voting power in MME was 32.2
percent.

1.2 Extension Of Offer Period

   Sunderton has announced that it has extended the Offer Period
under its takeover bid to 8 August 2001.

2. Funding Of MME

   2.1 Macquarie Bank

   In its Target's Statement, MTM Funds stated that a credit
paper had been completed and submitted for credit approval by
Macquarie Bank to extend its $37.5 million loan facility which
was due to expire on 30 June 2001 and to seek an increase in the
facility limit.

   While Macquarie Bank has not agreed to increase its facility
limit, Macquarie Bank has agreed to extend its facility to 31
December 2001. This extension is subject to:

   * the exercise of the put or call option entered into by
Sunderton in relation to shares held by Inanda in the capital of
MTM Funds and the completion of the transfer of such shares to
Sunderton by 10 July
2001;

   * the exercise of Sunderton's right to appoint a majority of
directors to the board of MTM Funds by 30 July 2001; and

   * execution of formal documentation.

   The material terms of the Macquarie Bank extension are as
follows:

   * an extension fee of $200,000, including an up front fee of
$75,000;

   * interest payable at 3% over bank bill rate with a default
rate of
6 percent over bank bill rate; and

   * repayment to Macquarie Bank of $2.5 million from the
proposed rights issue by MME (Rights Issue) (see paragraph 3
below for further information on the Rights Issue).

   The terms of the Macquarie Bank extension are set out in
Schedule 1 to this document.

   2.2 Babcock & Brown Interim Liquidity Package

     Babcock & Brown, as nominee for Babcock & Brown Lease
Management
Services Partnership, intends to lend MME up to $2 million
solely to meet interest payments under MME's loan facility with
Macquarie Bank (Liquidity Package).

     MME accepted the Liquidity Package to ensure that it has
sufficient funds to cover ongoing operations following Macquarie
Bank's refusal to provide additional funding under its existing
debt facility.

     The Liquidity Package was subject to a number of conditions
set out in paragraph 12 of the Liquidity Package as set out in
Schedule 2 and amended by the letter attached in Schedule 3
(Liquidity Package
Conditions) including:

     * Approval of the terms of the extension of the Macquarie
Bank loan facility;

     * Agreement that the exercise price payable to each of
Inanda and
Multiplex under their MTM Options is reduced by $550,000 each;

     * no material adverse change in the financial position or
prospects of MME prior to execution of the documentation for the
Liquidity Package;

     * no regulatory authority intervening in relation to
Sunderton's takeover offer for MME, the Liquidity Package or the
Rights Issue; and

     * execution of binding documentation in relation to the
Liquidity
Package on or before 5 July 2001.

The conditions precedent in paragraph 12 of the Babcock & Brown
Liquidity Package were confirmed by Babcock & Brown on 5 July
2001 to have been satisfied or waived.

The terms of the Liquidity Package are set out in the attached
letter and term sheet in Schedule 2 to this document and were
amended in the attached letter dated 5 July 2001 in Schedule 3.
Terms of the Liquidity Package include an upfront fee of
$150,000 payable on the earlier of drawdown and 30 July 2001.

   2.3 Consequences Of Liquidity Package

   Following completion of the Liquidity Package documentation
by 5 July 2001, and confirmation that the conditions of the
Babcock & Brown Liquidity Package have been satisfied or waived:

     * Babcock & Brown has agreed that no success fee is payable
by MME to Babcock & Brown under the Babcock & Brown Mandate (see
paragraph 3.1 of the Target's Statement);

     * Sunderton will exercise its rights under the MTM Options
to acquire the shares in MTM Funds held by Inanda and take
control of MTM.

     This will satisfy a number of the conditions of Macquarie
Bank (see 2.1 above).

3. Rights Issue

   3.1 Terms & Timing

     Under the Liquidity Package (as amended), MME has
undertaken to proceed with an underwritten non-renounceable
Rights Issue of Units of not less than $7 million within 30 days
of the closing date of Sunderton's takeover offer. The offer
price under the Rights Issue will be $0.265 per Unit, being the
closing price of Units on the ASX on the business day prior to
Sunderton's takeover announcement.

     Babcock & Brown will underwrite the Rights Issue at the
offer price and will receive an underwriting fee of 5.7143
percent of the sum underwritten ($400,000 if Babcock & Brown
underwrites 100 percent of a
$7 million Rights Issue).

     Further terms of the Rights Issue are set out in Schedules
2 and 3 to this document.

   3.2 Consequences Of Rights Issue

     Unitholders who have not accepted Sunderton's takeover
offer will be diluted if they do not take up their rights under
the Rights Issue.

     The proceeds of the Rights Issue will be used to repay
Babcock &
Brown up to $2.5 million, reduce the Macquarie Bank facility by
$2.5 million and the balance will be available for working
capital of MME.

4. Other Developments

   4.1 MTM Options

     The exercise price payable to Inanda and Multiplex has been
reduced by $550,000 to $800,000.

   4.2 Waiver Of Babcock & Brown Success Fee

     Babcock & Brown has waived its success fee under the
Babcock & Brown Mandate (see paragraph 3.1 of the Target's
Statement)

   4.3 HOYTS

     In another development, Hoyts has purported to terminate
its $425,000 per annum lease obligation at the South Bank
convention and cinema complex in Brisbane.

     MME disputes the entitlement of Hoyts to terminate the
lease and does not accept Hoyts' allegations that MME has
repudiated the lease

5. Formal Matters

   5.1 Approval

     This Supplementary Target's Statement was approved by a
resolution passed by the Directors of MTM Funds at a Board
Meeting on 5 July 2001 and was lodged with ASIC on 6 July 2001.
Messrs Roberts and Corcoran absented themselves from the Board
Meeting to approve this Supplementary Target's Statement.

   5.2 Responsibility

     Although named in this document, none of ASIC, Inanda,
Multiplex, Macquarie Bank, Babcock & Brown, Sunderton or Hoyts
has authorized the issue of this document nor takes any
responsibility for the contents of this document or any of the
documents set out in the schedules to this document.


NORMANS WINES: Heads Agreement For Merger Reform Extended
---------------------------------------------------------
The Heads of Agreement for restructuring the merger of Normans
Wines Limited and Xanadu Wines Limites has been further extended
until 13 July 2001, or such later date that Normans and Xanadu
agree.

Both parties continue to work together to achieve a positive
outcome.

A further announcement will be made when the revised terms of
the merger as contemplated by the Heads of Agreement have been
finalized, or if the Heads of Agreement terminates.


PASMINCO LIMITED: S&P Lowers Long-Term Rating To `BB-'
------------------------------------------------------
Standard & Poor's today lowered its long-term rating on Pasminco
Ltd. to double-'B'-minus from double-'B'-plus. The long-term
rating remains on CreditWatch with negative implications where
it was placed on July 2, 2001.

Pasminco's already subpar credit protection measures, which have
weakened due to the historically low zinc price, will be
exacerbated further by the uncertain market outlook for zinc in
the medium term.

Consequently, Pasminco's financial flexibility also has reduced
in terms of its debt maturity profile. The company's single-'B'
short-term rating is placed on CreditWatch with negative
implications.

The rating downgrade and CreditWatch listing reflect the mining
company's recent poor profit performance due to weak zinc and
lead metals prices; restrictive foreign currency hedge position;
and high debt levels arising from the company's growth strategy,
principally the acquisition of Savage Resources Ltd. in February
1999; and the development and recent commissioning of the
Century zinc/lead mine in Queensland.

In the short term, Pasminco maintains adequate committed undrawn
funding lines of about A$110 million; however, the company has a
near-term debt maturity profile, with about A$197 million in
bank lines maturing by June 2002.

The company's first debt maturity falls due in January 2002 for
about A$33 million, or US$17 million, and is expected to be
serviced by existing cash flow and cash balances. Subsequent
debt maturities relate to bilateral bank facilities, which
currently are under renegotiation.

The CreditWatch will be resolved on determination of Pasminco's
debt refinancing and long-term capital structure. The long-term
rating could be lowered further, if the company is unable to
achieve a satisfactory debt profile.

The short-term rating could be lowered to single-'C', Standard &
Poor's said.


URBAN ENERGY: Placed In Administration
--------------------------------------
Scientific Services Limited says that an Administrator has been
appointed to Urban Energy Pty Ltd, a company in which Scientific
Services holds a 48.5 percent equity interest.

The carrying value of Scientific's investment in Urban Energy at
30 June 2001 is in the order of $460,000. The Board of
Scientific advises that this investment will be fully provided
for in the full year accounts to 30 June 2001.

Dr Michael Cohen                    Mr John Thompson
Chairman                            Managing Director
(08) 9472 5555                      (08) 9472 5555


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C H I N A   &   H O N G  K O N G
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CENTURY INTERNATIONAL: Winding Up Petition Slated For Hearing
-------------------------------------------------------------
The petition to wind up Century International Investment Limited
is scheduled to be heard before the High Court of Hong Kong on
July 18, 2001 at 9:30 am.  The petition was filed with the court
on May 21, 2001 by The National Commercial Bank, Limited Hong
Kong Branch whose principal place of business is situated at 1-3
Wyndham Street, Central, Hong Kong.


CIL HOLDINGS: Trading Suspended
-------------------------------
At the request of CIL Holdings Limited (the Company), trading in
its shares will be suspended with effect from 10:00 a.m. Monday
9 July 2001, pending the results of the hearing on 9 July 2001
in relation to the winding-up petition against the Company by
Sin Hua Bank Limited.


EASTART FAR EAST: Winding Up Petition To Be Heard
-------------------------------------------------
The petition to wind up Eastart Far East Investment Limited is
scheduled for hearing before the High Court of Hong Kong on July
18, 2001 at 9:30 am. The petition was filed with the court on
May 21, 2001 by The National Commercial Bank, Limited Hong Kong
Branch whose principal place of business is situated at 1-3
Wyndham Street, Central, Hong Kong.


EASTECH INDUSTRIES: Hearing of Winding Up Petition Set
------------------------------------------------------
The petition to wind up Eastech Industries Limited is scheduled
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 Sin Hua Bank Limited Hong Kong Branch whose principal
place of business is situated at 2A Des Voeux Road Central, Hong
Kong.


EXCEL-MAX: Winding Up Petition Hearing Set
------------------------------------------
The petition to wind up Excel-Max Development Limited is
scheduled to be heard before the High Court of Hong Kong on July
18, 2001 at 9:30 am. The petition was filed with the court on
May 21, 2001 by Sin Hua Bank Limited Hong Kong Branch whose
principal place of business is situated at 2A Des Voeux Road
Central, Hong Kong.


HIGHRULE LIMITED: Winding Up Petition Set For Hearing
-----------------------------------------------------
The petition to wind up Highrule Limited will be heard before
the High Court of Hong Kong on July 18, 2001 at 9:30 am. The
petition was filed with the court on May 21, 2001 by The
National Commercial Bank, Limited Hong Kong Branch whose
principal place of business is situated at 1-3 Wyndham Street,
Central, Hong Kong.


PACIFIC CENTURY: Roadshow To Market Bond Issue Begins
-----------------------------------------------------
Today Pacific Century Cyberworks-HKT Limited (PCCW-HKT) is set
to launch its roadshow to sell its international bond issue, The
Asian Wall Street Journal reports. This issue is expected to
ease the financial burden of the company once its 46 percent of
the total debt matures in 2005.

Up for sale is the company's US$2.5 billion in 10- and 30-year
bonds, the newspaper says.

Last week, Moody's Investors Service Inc. and Standard & Poor's
Corp. gave the expected issue higher ratings a Baa1 and triple-B
ratings, respectively, the newspaper says.


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


BANK INTERNASIONAL: Possible Ratings Downgrade Ahead
----------------------------------------------------
Moody's affirmed its ratings of Bank Mandiri, while maintaining
its review for possible downgrade of the ratings of Bank
Internasional Indonesia. These actions follow an announcement
that Bank Mandiri is evaluating a potential merger with BII.

Moody's said that the ratings of Bank Mandiri, including the
positive outlook, were affirmed, reflecting the bank's dominant
position in the industry and considerable progress in the bank's
restructuring.

The rating agency noted that the acquisition of BII would bring
Bank Mandiri an attractive consumer franchise. However, Bank
Mandiri, which is Indonesia's largest bank, is substantially
greater in size than BII.

The effect of a merger between the two banks is therefore seen
as having only a marginal impact on Bank Mandiri's financial and
strategic position.

In addition, continuing political and economic uncertainties
weigh heavily on the bank's operating environment. As a state-
run institution, Bank Mandiri is also potentially susceptible to
the increasing level of government interventionism in the
financial sector.

BII's ratings remain under review for possible downgrade. Upon a
merger with Bank Mandiri, BII's ratings would converge with
those of the larger bank.

BII's ratings are currently under review, independent of a
possible merger with Bank Mandiri, pending greater clarity on
the resolution of its claim to IBRA under a scheme that
guarantees the obligations of the Sinar Mas group to the bank.

BII is heavily exposed to the Sinar Mas group, which has been
unable to meet its financial obligations. IBRA has undertaken to
guarantee all claims of BII upon the Sinar Mas group.

The possibility has been raised that all Sinar Mas loans will be
taken over by IBRA and so-called "recycled" government bonds
will be injected into the bank. However, important details of
the guarantee mechanism are still unresolved.

In particular, the review of BII's ratings will consider the
timeliness of repayment under the guarantee and the precise
characteristics of assets received by the bank.

As merger talks between Bank Mandiri and BII progress, Moody's
will continue to monitor the evolution of IBRA's guarantee
scheme of Sinar Mas obligations, and its impact upon the merged
bank.

The following ratings were affected:

Bank Mandiri -- The following ratings were affirmed: The ratings
of the bank for deposits: long-term at Caa1 and short-term at
Not Prime, long-term senior unsecured debt at B3, and the bank
financial strength rating of E. The ratings outlook is positive.

Bank Internasional Indonesia - The review for possible downgrade
of the following ratings was maintained: the ratings of the bank
for deposits: long-term at Caa1 and short-term at Not Prime, and
the bank financial strength rating of E+.

Bank Mandiri, headquartered in Jakarta, is Indonesia's largest
bank. Controlled by the government, it had assets of Rp260
trillion (approximately US$25 billion) at end March 2001.

Bank Internasional Indonesia, headquartered in Jakarta, is one
of Indonesia's leading listed banks. Also controlled by the
government, it had assets of Rp37.4 trillion (approximately
US$3.4 billion) at end March 2001.


BANK INTERNASIONAL: Sells Stake to Fuji Limited
-----------------------------------------------
Troubled PT Bank Internasional Indonesia sold its 20 percent
shareholding in PT Fuji Bank International Indonesia to Fuji
Limited for Rp62 billion, AsiaPulse reported Friday, citing the
Jakarta Stock Exchange. The disposal of assets was decided
during the shareholders meeting on March 1999.


WICAKSANA OVERSEAS: Reports Rp73.7B net loss in Q1
--------------------------------------------------
PT Wicaksana Overseas International Tbk is suffering from a net
loss of Rp73.7 billion in the first quarter this year due to
foreign exchange losses, IndsoExchange reports Thursday
referring to the report of Deputy Finance Director Elya Karis to
the Jakarta Stock Exchange.

The company experienced a net loss of Rp36.0 billion in the same
period last year mainly caused by foreign exchange losses. Forex
losses in last year was Rp57.3 billion while this year amounted
to Rp97.0 billion.

Meanwhile, total revenue during January-March dropped 11.9
percent to Rp624 billion from Rp708.4 billion sales booked in
the same period of 2000.

Total earnings of the company in the first quarter this year
dropped to 11.9 percent to Rp624 billion from Rp708.4 billion
sales in the same period last year.  The decrease was the result
of lower white cigarette sales and recent termination in
distribution contract with PT BAT Indonesia Tbk. Karis said that
the company was certain that sales would pick up and
profitability would improve, as more sales would be derived from
non-cigarette business with higher margin.

The company has fully restructured its $130 million debt last
year although a total of $97 million outstanding debt remains in
US dollar.

Earlier, Wicaksana Overseas, in its Annual General Meeting held
on June 28, 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.

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.

The company had previously said the termination of the BAT
contract would hit earnings in the first half, with recovery
expected in the third and fourth quarters as the company secures
new contracts with other producers.


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


DAIEI INC: Unit Ties Up With Fuji Soft
--------------------------------------
Daiei Information Systems, a subsidiary of debt-ridden retailer
Daiei Incorporated, has linked up with Fuji Soft ABC in
information systems operations, The Asian Wall Street Journal
reports over the weekend.

According to the report, Fuji Soft, through a third party
placement, will acquire a 65 percent stake in Daiei Information
Systems for Y1.5 billion.


DAI-ICHI MUTUAL: Tie-up Earns For Yasuda Fire Y4B
-------------------------------------------------
The business alliance between Dai-ichi Mutual Life Insurance
Company and Yasuda Fire and Marine Insurance Company has earned
for the latter a sum of Y4 billion in insurance premium revenues
from sales of Yasuda products through Dai-ichi, AFX-Asia
reported late last week, citing Nihon Keizai newspaper.

Both insurers entered into a business partnership during summer
of last year. It's said to be the first mutual supply
relationship between major life and general insurance firms, the
report says.

Dai-ichi Mutual Fire and Marine, a medium sized non-life
insurance group, collapsed in May of last year, after which it
went into administration.

Dai-ichi Mutual was the first non-life insurance group to have
collapsed in Japan in 50 years.


MYCAL CORP: Ba3 Ratings For Possible Downgrade, Moody's Says
------------------------------------------------------------
Moody's Investors Service placed Mycal Corporation's (MYCAL) Ba3
senior unsecured long-term debt ratings and issuer rating under
review for possible downgrade.

The review is based on Moody's concern that MYCAL's sales and
earnings will be under pressure because of its competitors'
aggressive marketing strategies.

Competition among retailers in Japan has further intensified
this summer as they battle to capture a pie made limited by weak
consumer confidence.

Although MYCAL's same store sales have shown a stable recovery
since the beginning of the fiscal year in February 2001, the
success of MYCAL's marketing efforts in July and August will be
very important to achieving financial goals for the first half
of the fiscal year.

Moody's review will assess MYCAL's marketing counter measures
and the speed with which MYCAL achieves its financial goals and
planned debt reduction. Moody's also continues to monitor the
progress of the restructuring plan announced in January 2001.

Mycal Corporation, headquartered in Osaka, Japan, is one of
Japan's largest retailers. The company operates four main retail
formats consisting of Saty and Vivre stores, MYCAL Town
complexes, as well as Pororoca food retailers. The company's
consolidated revenues for the fiscal year ended February 2001
were Y1.72 trillion (approximately US$14.4 billion).


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


GWANGJU BANK: KDIC To Inject Public Fund
----------------------------------------
By August or September, state-owned deposit insurer Korea
Deposit Insurance Corporation (KDIC) will inject additional
bailout fund of W273.1 billion into insolvent Gwangju Bank, The
Korea Herald reports yesterday, citing KDIC Director Park Seung-
hee.

However, Park noted that the public fund provision will be made
once the deposit insurer has completed its review on the bank's
management performance, which is included in the terms and
conditions set in the memorandum of understanding (MoU) between
the bank and the government, the newspaper says.


HANVIT BANK: To Get W1.87T In Bailout Funds From KDIC
-----------------------------------------------------
Hanvit Bank will be a recipient of additional public funds
amounting to W1.87 trillion from the state-owned Korea Deposit
Insurance Corporation (KDIC) by August or September, The Korea
Herald reports Monday, citing KDIC Director Park Seung-hee.

This second round of bailout program for the bank is expected to
ease the financial crunch of the company, and thus, normalize
its operations, the newspaper says.

Park told Herald, "The KDIC will review the performance of the
insolvent commercial bank according to the terms and conditions
of the Memorandum of Understanding (MOU), which the bank signed
with the government before injecting the second round of public
funds."


HYUNDAI ENGINEERING: Refuses To Give Up Stake In Unit
-----------------------------------------------------
Hyundai Engineering and Construction Company (HDEC) has refused
to give up its stake in Hyundai Petrochemicals, as requested by
the petrochemical unit's creditors, The Digital Chosun reports
yesterday.

Creditor bank Hanvit said, "Although HDEC has agreed to
relinquish its management rights for Hyundai Petrochemical, it
has turned down the creditor group's request to cancel its
equity stakes in the company and to submit a power of attorney
for shares with voting rights."

The cancellation of shares by the largest shareholders of
insolvent Hyundai Petrochemicals is a means to materialize the
capital reduction, which is one of the conditions set by the
creditors in return for bailout funds, the report says.

Reportedly, HDEC held Friday a Board of Directors' meeting and
resolved to oppose the creditor banks' request for shares
cancellation without going through the process of valuation,
Chosun says.


HYUNDAI PETROCHEM: Seosan Plant Shut Down Likely
------------------------------------------------
The plant of Hyundai Petrochemical in Seosan City in Chung-nam
province is now tipping towards possible closure owing to
shortage of raw materials, The Digital Chosun reported
yesterday.

The shortage is supposedly due to the fact that the company's
creditor banks refused to open the letter of credit for the
importation of raw materials, an action to counter the objection
of the company's largest shareholders to a creditors' urging to
undertake a full-scale capital reduction.

This move by the creditors to reduce capital, the report says,
is one of the three conditions set in exchange for the provision
of rescue funds to the company. The two other conditions are
management revamp and the labor union's agreement to further
restructuring measures.

Four of the largest shareholders of the company that are
opposing the capital reduction move are: Hyundai Engineering and
Construction Company, Hyundai Motor, Hyundai Development
Company, and Hyundai Department Store.


KOREA LIFE: Merrill Lynch To Send Sale Guide Book
-------------------------------------------------
Merrill Lynch & Company is considering sending in August guide
books for the sale of Korea Life Insurance Company to interested
bidders, The Korea Herald reports Monday, citing the Seoul
Economic Daily.

Merrill Lynch is lead-managing the sale of the state-owned
insurer. The sale is expected to be completed by the end of the
year, the newspaper reports.

Prospective buyers include Orix Corporation, Hanwha Group and
American International Group Inc (AIG).


SSANGYONG FIRE: Sam-Ai Sells Stocks Block
-----------------------------------------
Sam-Ai Industrial Company has completed selling off its 350,000
shares in Ssangyong Fire and Marine for W2.1 billion, reducing
its stake to 15.89 percent from 20.02 percent, The Korea Herald
reported yesterday.

The shares sale by Sam-Ai is in partial fulfillment of its
pledge to give up its managerial rights in the ailing domestic
insurance company.


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


BESCORP INDUSTRIES: Default Due To Cashflow Constraints
-------------------------------------------------------
Bescorp Industries Berhad (BIB) hereby provides an update on its
default in payment, as follows:

The default in payment by BIB and its subsidiary companies (BIB
Group) was mainly due to cashflow constraints as a result of the
economic and construction industry slowdown, which adversely
affected the operational activities of BIB Group.

This resulted is a deterioration in the turnover and the
subsequent cessation of operations of the subsidiary companies
within the BIB Group.

Furthermore, the continuing increase in interest on bank
borrowings and the winding up of all the subsidiary companies
within the BIB Group, with the exception of Waktu Cerah Sdn Bhd
(WCSB), placed the BIB Group in a tight liquidity position,
which culminated into huge losses.

As a consequence of this, the BIB Group is now unable to meet
its financial obligations.

The total indebtedness of the listed issuer will be entitled to
rank for distribution under the Proposed Restructuring Scheme
(PRS) of the Company.

This comprise loans due and payable to banking institutions,
hire purchase liabilities, trade and non-trade creditors,
amounting to RM54,562,535.12 as at 30 June 2001.

As certain subsidiary companies have liabilities that are
guaranteed by BIB, in view of the liquidation of the respective
companies, the guaranteed liabilities of the subsidiary
companies, save for WCSB, which are in liquidation will be
satisfied from the realization of assets of the respective
companies.

The liabilities of WCSB which are guaranteed by BIB will be
addressed under the PRS of BIB upon crystallization of the
corporate guarantee.

Meanwhile, pursuant to Section 41 of the Pengurusan Danaharta
Nasional Berhad Act, 1998, a moratorium shall take effect to
restrain and stay all creditors of BIB from undertaking any
legal action or proceedings against BIB, to enable the
completion of the PRS.

As for the subsidiary companies, which are currently in
liquidation, no further action or proceeding shall be proceeded
with or commenced against the Company, except by leave of court,
pursuant to Section 226 of the Companies Act, 1965.

The Exchange will be updated from time to time on the status of
the proposed restructuring scheme (PRS) of BIB.

Background

The Bescorp Group will be undertaking a restructuring scheme to
enable it to resume operations. Its subsidiaries, which have all
ceased operations, were involved in the manufacture of precast
piles as civil and building contractors and piling contractors.

The Company is currently preparing a revised proposed scheme of
arrangement with its creditors and is expected to submit the
proposed scheme to the court to obtain an order to convene a
formal creditors' meeting pursuant to Section 176 of the
Companies Act, 1965.

On 2 March 2000, Special Administrators have been appointed for
the Company pursuant to Section 24 of the Pengurusan Danaharta
Nasional Bhd Act, 1998.

The company is headquartered at Unit 725, 7th Floor, Block A
Kelana Centre Point No. 3 Jalan SS7/19 Kelana Jaya 47301
Petaling Jaya (Tel: 03-78809699; Fax: 03-78808699).


GROUP STEEL: RAM Assigns AAA(bg) On BG ABBA Bonds
-------------------------------------------------
RAM has assigned long-term ratings of AAA(bg) for Tranches A, B
and C of Group Steel Corporation (Malaysia) Sdn Bhd's proposed
RM100 million Bank Guaranteed Senior Secured Al-Bai Bithaman
Ajil Bond Issuance Facility (BG ABBA Bonds).

In addition, Tranches D, E and F of the proposed BG ABBA Bonds
have been assigned long-term ratings of AA1(bg). The ratings
reflect the strength of the guarantor banks, which have enhanced
the credit risk profile of the debt securities beyond that of
the issuing company's inherent or stand-alone rating.

The proposed BG ABBA Bonds had been approved by the Securities
Commission on 30 May 2001.

The purpose of the proposed bonds is to refinance Groupsteel's
commercial loans.

Groupsteel is principally involved in the manufacturing and
marketing of galvanized and color-coated steel coils. Formerly
part of the Orna Group of companies, Groupsteel is now a 90.0
percent-owned subsidiary of its ultimate holding company, China
Steel Corporation Ltd (China Steel).

China Steel acquired both Groupsteel and its sister company,
Ornasteel Enterprise Corporation (M) Sdn Bhd (Ornasteel) in
December 2000. China Steel is one of the largest steel producers
in the world and is rated 'twAA+' by Taiwan Rating Corporation,
the only domestic rating agency in the Republic of China.

In the long run, China Steel's involvement is envisaged to
improve Ornasteel and Groupsteel's efficiencies, given the
former's proven track record of superior operating efficiency.

Nonetheless, it is necessary for China Steel to evince concrete
capital injection into Groupsteel before the former's credit
strength can be given full consideration by RAM.

Due to the start-up status of its operations, Groupsteel had
been making losses during its initial 2 years of operations.

Even though the Company made its maiden profit in FYE November
2000, the present slump in the steel industry has lowered its
sales volume and resulted in Groupsteel falling into the red
again in 1Q FYE November 2001.


KILANG PAPAN: Applies For Extension For Plan Submission
-------------------------------------------------------
Arab-Malaysian Merchant Bank Berhad, in behalf of Kilang Papan
Seribu Daya (KPSD) Berhad, has made an application to the Kuala
Lumpur Stock Exchange (KLSE) to seek for an extension of time
for submission of the proposed debt and equity restructuring
scheme to the relevant authorities for another one month to 31
July 2001.

Save as mentioned above, there is no change to the Company's
plan to regularize its financial condition from the plan as
announced on 15 January 2001.

Background

The Company (KPSD) produces 36,000 cubic meters of sawn timber
and 24,000 cubic meters of molded timber per annum out of its
factory in Kota Marudu, Sabah. It also has a kiln drying
facility with capacity of 1,500 cubic meter per discharge.

Approximately 90 percent of its products are exported to Japan,
USA and Europe. Since 1994, the Company has diversified into the
manufacture of particle board, timber doors, rubber wood
products and charcoal.

Its 80 percent-owned subsidiary, Padas Hevea Wood Products
(PHWP) produces 9,000 cubic meters of sawn timber per annum.
Approximately 95 percent are exported to Taiwan, China, USA
while the local market accounts for 5 percent of finished
products.

With effect from 14 December 1999, Special Administrators,
Messrs Ernst & Young, were appointed to the Company.

On 21 August 2000, the Company entered into a conditional
agreement with Datuk Hwong You Chuaang and his brother, Hwong
You Soon (substantial shareholders), who have proposed to
include as part of KPSD's restructuring proposal, a capital
reconstruction exercise, incorporation of a new company (Newco),
share swap involving the exchange of consolidated shares in KPSD
for new shares in Newco; acquisition of all or some existing
subsidiaries of KPSD by Newco; offer for sale of securities by
certain creditors to existing minority shareholders of KPSD;
debt restructuring involving settlement of all known debts; and
transfer of KPSD's listing status to Newco.

Also, the exercise involves completion of the acquisition of 100
percent in Resofocus Corporation Sdn Bhd under revised terms and
the internal restructuring via transfer to Newco of KPSD's
shareholding in Resofocus and 80 percent in PHWP.

The proposals were approved by Danaharta and secured creditors
on 22 December 2000 and 29 December 2000 respectively.

The company's headquarters is located at Lot 1, Harmoni
Industrial Estate Inanam 88100 Kota Kinabalu, Sabah (Tel: 088-
423385; Fax: 088-423287).


L&M CORP: Default Payments Now At RM189.2M
------------------------------------------
The Board of Directors of L & M Corporation (Malaysia) Bhd
updated the status of payment default by the L&M Group. As of 30
June 2001, the total defaulted payments to financial
institutions in respect to various credit facilities by L&M
Group is RM189,182,371.24.

The Company has taken steps to address the default by way of
undergoing a corporate and debts restructuring scheme (Scheme)
governed by Section 176 of the Companies Act 1965 and would be
settled upon completion of the Scheme.

Background

On 29 May 2000, the High Court granted the Company a restraining
and stay order pursuant to section 176 of the Companies Act,
1965 which has been extended.

On 22 November 2000, the Company filed an application for
another extension for a further period of 90 days from 1
December 2000 to 28 February 2001.

Meanwhile, L&M proposes to undertake a restructuring scheme
which involves:

   i) transfer of its listing status to Eastern Atlas Bhd (EAB),
a newly incorporated company;

   ii) disposal of the entire equity interests in L&M Geotechnic
Sdn Bhd (LMG) and L&M Instrumentation Sdn Bhd (LMI) to EAB;

   iii) rights issue;

   iv) composite scheme of arrangement with financial
institutions and trade and other creditors of L&M and/or LMG
and/or the subsidiaries of L&M with corporate guarantees from
L&M encompassing five separate schemes of arrangement;

   v) acquisition by EAB of the entire equity interests in
Satujaya Sdn Bhd, Kayman Integrated Sdn Bhd and Vistashine Sdn
Bhd;

   vi) liquidation of the remaining subsidiaries of L&M,
excluding LMG and LMI; and

   vi) listing of EAB on KLSE.

L&M and its companies had mainly provided specialized
engineering and construction services. Currently, other than the
Pelabuhan Tanjung Pelepas Project undertaken by L&M Geotechnic
Sdn Bhd, there are neither any on-going projects nor new
projects secured by other subsidiary companies.

Subsidiaries L&M Piling Sdn Bhd and L&M Prestressing Specialist
Sdn Bhd were wound up by creditors on 1 June 2000 and 5 July
2000 respectively.


LION CORP: RAM Affirms A3(bg) Rating
------------------------------------
RAM has reaffirmed the rating of A3(bg) for Lion Corporation
Bhd's RM350 million Redeemable Bank-Guaranteed Bonds
(1997/2002). The rating reflects the unconditional and
irrevocable guarantee provided by a consortium of rated
financial institutions.

The bank guarantee has, in effect, enhanced the credit risk
profile of the bonds beyond that of Lion Corporation's inherent
or stand-alone credit risk.

Lion Corporation is an investment holding company within the
Lion Group. The Lion Group consists of 9 listed companies, the
most prominent being Lion Corporation and Amsteel Corporation
Bhd.

The Group's core activity is in the steel business via its
effective 90 percent equity interest in Megasteel Sdn Bhd, the
only hot-rolled coil producer in the country.

The Lion Group announced its long-delayed Proposed Group-Wide
Restructuring Scheme (GWRS) on 5 July 2000, which was intended
to address the Group's financial problems.

The Proposed GWRS, however, has encountered numerous obstacles
and has yet to obtain all the necessary approvals. Hence, Lion
Corporation has applied to the Kuala Lumpur Stock Exchange to
extend the deadline for the Group to obtain all the said
approvals, from 25 June 2001 to 31 December 2001.

Thus far, only the approvals of Bank Negara Malaysia and the
Foreign Investment Committee have been obtained.

On 19 June 2001, the Lion Group announced that it had revised
its profit forecast and the estimated sales proceeds to be
derived from its divestment program, which was one of the
salient features in the GWRS.

Due to the revision, the Lion Group is currently in negotiations
with its bankers to review the terms of the Proposed GWRS. RAM
will monitor the progress of the revised Proposed GWRS closely.

For the 9 months ended 31 March 2001, Lion Corporation reported
a pre-tax loss of RM262.48 million against a turnover of
RM792.75 million.

The continued loss-making operations have substantially eroded
Lion Corporation's shareholders' funds. As at the same date,
Lion Corporation has negative shareholders' funds (including
minority interest) of RM59.87 million.


OMEGA HOLDINGS: Negotiations With Creditor Banks Underway
---------------------------------------------------------
Omega Holdings Berhad says that the Company is still in
negotiation with its creditor banks on the Company's proposed
debt restructuring scheme.

Omega Holdings Berhad intends to dispatch a proposed revised
scheme paper to the lenders by 4 July 2001 for their approval.

Background

The Company (OHB) was formed for the purpose of restructuring
Klang Valley-based Omega Securities Sdn Bhd (OS) and Pahang-
based WK Securities Sdn Bhd (WK), and subsequently seeking a
listing on the Main Board of KLSE. The restructuring of OS and
WK involved the acquisition by Omega, on 8 march 91, of 100
percent in each of the two companies.

On 17 February 1998, OS was placed under trading restriction due
to irregularities in its financial position. WK followed suit on
1 April 1998. Subsequently, on 4 May 1998, OS ceased trading
activities after it failed to meet the minimum liquid final
requirement under KLSE Rules.

OS's stockbroking license was thereafter revoked by the
Securities Commission (SC) on 5 June 1998.

Under the management of Special Administrators, the business of
WK Securities Sdn Bhd was officially taken over by KL City
Securities Sdn Bhd on 8 July 2000. WK will cease to be a
stockbroker but will remain dormant.

On 8 March 2000, the Company signed a restructuring agreement
with the shareholders of Broadland Garment Industries Sdn Bhd
which included a proposed capital reduction share exchange on
the basis of one new share in NEWCO for every one share in OHB
and the subsequent transfer of listing status of OHB to NEWCO,
rights issue, restricted issue, acquisition by NEWCO of the
entire equity interest in Broadland Garment Industries Sdn Bhd
and debt restructuring.

Meanwhile, the Company had opposed the petition by the Kuala
Lumpur Stock Exchange (KLSE) to wind up Omega Securities Sdn
Bhd. The hearing date which was fixed in October 2000 was
deferred to 17 April 2001.


PARIT PERAK: Reports Term of Agreement With Bentaniaga
------------------------------------------------------
On 3 April 2001, Parit Perak Holdings Berhad (PPHB) announced
that PPHB on 3 April 2001 entered into a Master Agreement with
Bentaniaga Sdn Bhd and Desa Lestari Sdn. Bhd. (Vendors) in a
tentative scheme of reconstruction of PPHB and its subsidiaries
(Proposals).

It was a term of the Master Agreement that:

   i) Within three months following the execution of the Master
Agreement or such longer period as may be mutually agreed
(Negotiation Period), PPHB and the Vendors shall complete the
following, failing which the Master Agreement would terminate
and be of no further force and effect:

      (a) cause Capital Dynasty Sdn Bhd (CDSB) to secure the
duly executed and stamped agreement(s) evidencing the settlement
of the debts owed by CDSB to Malaysia Building Society Berhad;

      (b) secure the duly executed and stamped agreement(s)
evidencing the divestment of CDSB;

      (c) secure the written approval(s)-in-principle of some or
all the creditors to the settlement of the liabilities owed by
PPHB, Citra Vista Sdn Bhd and Oxford Master Sdn Bhd to the
Creditors with or without conditions attached acceptable to
PPHB; and

      (d) enter into negotiations with a view to the execution
of agreement(s) relating to the proposed acquisition of the
entire equity interest in Desa Plus Sdn Bhd and Desa Hatchery
Sdn Bhd, the 30 percent equity interest in Amalania Koko Berhad
and Sabah Holdings Corporation Sdn Bhd, the 27.76 percent equity
interest in Sabah Cocoa Sdn Bhd (Desa Group) and the land held
under Ranau Country Lease No. 065316047 in the district of Ranau
within the locality of Mesilau, Sabah on terms and conditions to
be mutually agreed upon by the relevant parties (Proposed
Acquisitions). The Vendors shall also procure Korporasi
Pembangunan Desa to be a party to the Proposed Acquisitions.

The Company also announced on 2 July 2001 it had written to the
Vendors to request for the Negotiation Period to be extended to
31 July 2001. PPHB still remains in negotiation with its
creditor banks on the proposed debt restructuring.

Background

Initially the Company carried out rubber planting activities,
but its business has changed to that of an investment holding
concern. Via a restructuring scheme undertaken in 1994, the
Company divested its plantation interests and re-invested
principally into property development activities. Its main
development is the Kemayan City project in Johor Bahru, where
the Kemayan City Shopping Complex was completed in February
1999.

In February 2000, the Company sought the assistance of the CDRC
in mediating a scheme to restructure the Group's debts and
borrowings. On 8.8.2000, a restructuring scheme was unveiled
which comprises a proposed capital reduction and consolidation,
rights issue, acquisition of a shopping complex in Seremban and
a debt restructuring scheme. The proposals are expected to be
submitted to the SC within six months from 30 November 2000.

Meanwhile, the Company has been appointed the main turnkey
contractor to complete the construction of the podium block of
the largest shopping center in Seremban, known as Kemayan Square
Shopping Mall. The shopping center is targeted to reach
practical completion by the end of 2001. The Group also plans to
re-position itself in the property development sector by
constructing apartments on top of the Kemayan City shopping
podium in Johor Bahru instead of the present approved plans for
three office towers and a hotel.


RAHMAN HYDRAULIC: Gets Notice Of Mention Of Case
------------------------------------------------
The Special Administrators of Rahman Hydraulic Tin Berhad (RHTB)
revealed a case notice in the matter of Industrial Court case
between RHTB and National Union of Plantation Workers has been
received by the Company at the Ladang Pinang Tunggal, Kedah
Darul Aman on 30 June 2001.

The notice came following a complaint lodged by the National
Union of Plantation Workers that Article No. 39 (Paid Holidays)
of the ward/Collective Agreement has not been complied with.

The case will be mentioned before the Court on 13 July 2001.

Background

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

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

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

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

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

Since its formation, RHTB has been in the business of tin ore
extraction from mining leases located in Klian Intan, Perak.
RHTB widened its earnings base in 1970 via purchase of rubber
plantation Ladang Pinang Tunggal.

The rubber gloves manufacturing business which produces mainly
latex examination gloves for both export and the local market,
commenced business in 1988. The factory is located near Batu
Caves, Selangor.

In 1990, RHTB added property development to its portfolio.


S&P FOOD: Seeking Shareholders Workout Approval
-----------------------------------------------
S&P Food Industries (Malaysia) Berhad said that to date the
Company had received approvals from the Foreign Investment
Committee, the Ministry of International Trade and Industry, and
the Securities Commission (SC) for the Company's proposed
restructuring.

The proposal consists of the following:

   i) proposed capital reduction

   ii) proposed scheme of arrangement

   iii) proposed debt restructuring

   iv) proposed claim settlement

   v) proposed acquisition of new businesses

   vi) proposed acquisition of oil palm estate

   vii) proposed capitalization of debts

   viii) proposed shareholders' advance

   ix) proposed disposal of existing business

The Proposals are still subject to the following approvals:

   (i) shareholders of SPF at an Extraordinary General Meeting
and Court Convened Meeting to be convened;

   (ii) sanction of the High Court of Malaya for the Proposed
Capital Reduction and Proposed Scheme of Arrangement; and

   (iii) KLSE for the listing of and quotation for the new
Cepatwawasan Group Berhad (CGB) ordinary shares arising from the
Proposed Scheme of Arrangement, Proposed Acquisition of New
Businesses, Proposed Acquisition of Oil Palm Estate, Proposed
Capitalization of Debts and upon conversion of the irredeemable
convertible unsecured loan stocks to be issued pursuant to the
Proposed Debt Restructuring and Proposed Claim Settlement.

Background

The Company (SPFI) on 16 August 2000 proposed to undertake a
capital reduction and scheme of arrangement involving
incorporation of a new investment holding company (Newco), where
the existing shareholders of SPFI will have their respective
consolidated SPFI shares cancelled and exchanged with Newco
shares.

Upon completion of the proposed scheme, SPFI proposes to
undertake a rights issue and a debt restructuring that will
provide settlement of the Group's financial obligations by cash
repayment and the issuance of ICULS in Newco, and the settlement
of a claim by a stockbroking company also by an issuance of
ICULS in Newco.

In addition, SPFI proposes to acquire equity interests of 15
companies involved in operation of oil palm and cocoa
plantations and timber extraction, provision of equipment hiring
services, timber log trading, and provision of plantation
management services. SPFI also proposes to acquire two oil palm
estates.

Following this, Newco will dispose of the existing business of
SPFI via the disposal of SPFI and its existing subsidiaries to
Simfoni Melangit Sdn Bhd.
An application will be made to delist SPFI from the Second Board
of KLSE upon completion of the proposed scheme and to
subsequently list Newco on the Main Board of KLSE.

Upon completion of the restructuring exercise, the Company's
core business is expected to be changed to "Plantation".

SPFI had been involved in the manufacture, and trading of
coconut cream powder locally known as "Instant Santan" with the
technical back-up and research support of the Malaysian Research
and Development Institute (MARDI) in early 1983, and started
commercial production in May 1985.


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


NATIONAL POWER: Selling Sub-transmission Assets To Meralco
----------------------------------------------------------
National Power Corporation (Napocor) and Manila Electric Company
(Meralco) are resuming negotiations, shelved for past three
years, for the sale of Napocor's sub-transmission assets, The
Business World reported yesterday. The estimated value of the
asset is pegged at over P1 billion.

Napocor Senior Vice-President Asiscio Gonzaga was quoted as
saying that it is the goal of the troubled state-owned utility
firm to sell the sub-transmission facility to Meralco since it
is a distribution franchise, the local business paper reported.

Three years ago, the sale negotiations between the two parties
were stalled owing to Napocor's lack of mandate to dispose any
of its assets. However, this time around, the planned disposal
could be realized with the enacted Power Sector Reform Act
(Republic Act 9136), which would call for, among others, the
privatization of the utility firm.


RFM CORP: Assures Bondholders To Meet Obligations
-------------------------------------------------
RFM Corporation and its wholly owned subsidiary RFM Capital
Limited have pledged to bondholders that the company and its
unit would meet its bonds payment, The Philippine Star reports
yesterday.

Payment will be made using an escrow fund and the proceeds from
the sale of its shares in Consumer Bank and Psi Technologies and
its tuna brand, totaling $38 million.

Total bond obligation, including put premium, now stands at $56
million, the newspaper says, citing RFM Chief Finance Officer
Meldin Al Roy.

The report also says that the company is now negotiating with
bondholders regarding the repayment plan for the remaining $18
million in obligation.


URBANCORP: SEC Grants 60-Day Reprieve
-------------------------------------
Urbancorp Investments Inc, an investment house 40 percent owned
by the closed Urban Bank Inc, is getting a 60-day debt reprieve
from the Securities and Exchange Commission (SEC), The
Philippine Daily Inquirer reported Sunday.

The SEC Panel, which handed down the order last week, said that
the extension on the debt reprieve for Urbancorp could be lifted
earlier once the SEC has approved the investment house's
rehabilitation plan.

Earlier, Urban Bank receiver, the Philippine Deposit Insurance
Corporation (PDIC), had approved in principle the rehabilitation
plan for Unbancorp prepared and presented by Export and Industry
Bank (Exportbank) and its partner, National Association of Urban
Bank and Urbancorp Depositors and Creditors.


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


GOLDEN AGRI: Calls Off Alliance With Cargill Asia
-------------------------------------------------
Golden Agri-Resources Limited (GAR) has called off its alliance
with Cargill Asia Pacific Ltd, which involved the incorporation
of Cargill-Mas Holdings Ltd, says Director Sia Siew Kiang.

Market-related events in the past six months are the main
reasons GAR and Cargill have called off the alliance. Consequent
to the dissolution of Cargill-Mas, the joint venture between
Cargill-Mas and Seletar Investments Pte Ltd has been terminated.

This follows the joint announcements made on 12 April and 2 June
last year relating to the alliance and joint venture,
respectively.

GAR and Cargill will continue their activities in the respective
palm oil market segments.

Listed on the Singapore Exchange in 1999, Golden Agri-Resources
Ltd. (GAR) is one of the largest private palm oil plantations in
the world. Its principal operations are located in Indonesia.

With a total planted area of 273,000 hectares, the company's
primary activities include the cultivation and harvesting oil
palm trees, collecting fresh fruit bunch and processing these
into crude palm oil (CPO) and palm kernel and refining CPO into
value-added products such as cooking oils, margarine and
shortening. GAR operates 18 palm-oil processing mills, two
refineries and four kernel crushing mills.

GAR is 55 percent owned by Singapore Stock Exchange (SGX) listed
Asia Food & Properties Ltd (AFP), an investment holding company
with operating businesses in agri-resources, food and
properties.

Listed on the SGX in 1997, AFP's principal operations are
located in Indonesia, China, Singapore and Malaysia. The AFP
Group of Companies employs more than 60,000 people with strong
local, regional and international knowledge and experience.
AFP's turnover in 2000 was S$1.4 billion.


HO WAH GENTING: Shares Trading Suspended
----------------------------------------
Ho Wah Genting International Limited has requested the
suspension of trading of Ho Wah Genting International Ltd's
shares effective 6 July 2001, pending an announcement, says
Managing Director Thor Chin Keong.


L&M GROUP: Seeks Options To Raise Capital
-----------------------------------------
The directors of L&M Group Investments Limited are of the view
that there are reasonable grounds for the company and its
subsidiaries to continue as a going concern as the creditor bank
remains supportive of the L&M Group, says Attlee Hue, the
Company Secretary.

The company is also currently exploring various options of
raising capital including the disposal of non-core assets.


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


SAMART CORP: Posts EGM Resolutions
----------------------------------
Samart Corporation Public Company Limited announces the
resolutions of the Extraordinary General Meeting of Shareholders
No. 1/2001 held on July 4, 2001 are as follows:

1. The minutes of the Ordinary General Meeting of Shareholders
2001 was certified;

2. Approved the issuing of 3,765,754 units of warrants to the
Company's directors and the Company and the Subsidiaries'
employees with criteria, conditions and procedures of the offer
as follows:

   2.1 Details of Warrants

       Type of warrants: Warrants will be non-transferable and
non-sellable. The warrant holders are entitled to exercise their
rights to subscribe for the company's ordinary shares

       Project duration: 5 years

       Maturity: 5 years

       Number of warrants: 3,765,754 units which will be
allocated to the Company's directors and the Company and the
Subsidiaries' employees

       Offering price: Bt0 per unit

       Exercise ratio: 1 unit of warrant to one ordinary share

       Ordinary shares reserve: 3,765,754 shares for the
exercise of warrants

       Secondary market: The Company will not apply for listing
of warrants on The Stock Exchange of Thailand

       Exercise price: Bt15

   2.2 Criteria, Conditions and Procedures of the Offer

       2.2.1 The issue and offer of the above warrants to the
Company's directors and the Company and the Subsidiaries'
employees will be made after getting approval from the SEC
and/or the other relevant authorities.

       2.2.2 The number of 3,765,754 units of warrants will be
offer to the Company's directors and the Company and the
Subsidiaries' employees.

             The Allocation Committee specified in paragraph 2.3
below will be empowered to determine the allocation of warrants
based on the level of seniority, importance to the company,
period of employment and performance of each director and
employee.

       2.2.3 In case that any warrant holders ceases to be
employees of the Company or the Subsidiaries by reasons of
retirement, death, or disability, the warrant holder will be
eligible to exercise the warrants until the maturity of the
warrants.

       2.2.4 In case that any warrant holders ceases to
employees of the Company or the Subsidiaries as a result of
resignation, termination or dismissal from being an employee of
the Company or its subsidiaries, for whatever reasons, the
warrant holder will no longer be eligible to exercise the
unexercised warrants previously allotted to the warrant holder.

             The unexercised warrants must be promptly returned
to the Company.

             The Allocation Committee set out in Clause 2.3 will
be empowered to allocate the returned warrants to other
employees and/or directors or to cancel the returned warrants in
whole or in part.

       2.2.5 In case that any warrant holders cease to be
directors of the Company, the Allocation Committee will be
entitled to determine either to cancel the unexercised warrants
previously allotted to the warrant holders or to maintain the
exercise rights of the warrant holders to exercise the
unexercised warrants until the maturity of the warrants.

       2.2.6 The allotment of warrants will be divided into 5
tranches throughout the project duration as follows:


   Year                   Allotment amount
    1         Not exceed 10% of the total number of warrants

    2         Not exceed 15% of the total number of warrants

    3         Not exceed 20% of the total number of warrants

    4         Not exceed 25% of the total number of warrants

    5         Not exceed the number of warrants remained from
the previous allotments

       2.2.7 In any event, the warrants will expire after their
maturity date.

       2.2.8 The Allocation Committee will be entitled to
determine and propose to the shareholders' meeting for further
approval regarding the names of any employee of the Company or
the Subsidiaries who will be allotted warrants in excess of five
percent of the total Number of Warrants and the names of
directors of the Company and the maximum number of warrants
which will be allotted to the aforementioned employees and
directors.

List of employees allotted in excess of 5 percent of the total
number of warrants:

Name of Director       Position       Number of warrants   % of
warrant
                                          Allotted
allotment

1. Mr Charoenrath Vilailuck Executive
                            Chairman/       400,000    10.62...1
                            Chief Executive Officer

2. Mr Thavatchai Vilailuck President   400,000         10.62...2

List of Directors obtaining the warrants' allotment

Name of Director       Position   Number of warrants   % of
warrant
                                       Allotted
allotment

1. Mr Pichai Vasnasong  Chairman         32,000             0.85

2. Mr. Vichien  Tejapaibul         Vice Chairman    32,000  0.85

3. Mr. Seri  Suksathaporn          Director         20,000  0.53

4. Ms. Rapeepan  Luangaramrut      Director         32,000  0.85

5. YBhg Dato' Ir Mohd Zin Mohamed  Director         14,000  0.37

6. Mr. Lim Kheng Guan              Director         14,000  0.37

7. Mrs. Siriphen Vilailuck        Director         32,000  0.85

8. Mr. Charoenrath Vilailuck      Director      32,000  0.85...1

9. Mr. Thavatchai Vilailuck       Director      32,000  0.85...2

10. Mr Sirichai Rasameechan       Director      24,000  0.64...3

11. Mr. Julpas  Kruesopon           Director    22,000 0.58...4

12. Mr. Ramlan Ahmad                Director     14,000 0.37...5

Note:

1. Total number of warrants to be allotted to Mr. Charoenrath
Vilailuck as the Company's Director and employee will be 432,000
units or equivalent to 11.47 percent of the warrant allotment.

2. Total number of warrants to be allotted to Mr. Thavatchai
Vilailuck as the Company's Director and employee will be 432,000
units or equivalent to 11.47 percent of the warrant allotment.

3. Total number of warrants to be allotted to Mr. Sirichai
Rasameechan as the Company's Director and employee will be
174,000 units or equivalent to 4.60 percent of the warrant
allotment.

4. Total number of warrants to be allotted to Mr. Julpas
Kruesopon as the Company's Director and employee will be 152,000
units or equivalent to 4.01 percent of the warrant allotment.

5. Total number of warrants to be allotted to Mr. Ramlan Ahmad
as the Company's Director and employee will be 80,000 units or
equivalent to 2.12 percent of the warrant allotment.

       2.2.9 Other than the above-mentioned employees who will
be allotted warrants in excess of five percent of the total
number of warrants, the number of warrants to be allotted to any
employee throughout the project duration will not exceed five
percent of the total number of issued warrants, unless the
shareholders' meeting approval is obtained.

   2.3 Appointment of Allocation Committee for consideration of
directors and employees qualifications to be entitled to the
allocation of warrants.

       The Allocation Committee will consist of the following
persons:

          1. Mr.Charoenrath Vilailuck

          2. Mr.Thavatchai Vilailuck

          3. Mr.Sirichai Rasameechan

       The Allocation Committee will be empowered to determine
the allocation of warrants based on the level of seniority,
importance to the company, period of employment and performance
of each directors and employees.

   2.4 Criteria, conditions and procedures for the exercise of
warrants.

       2.4.1 Exercise period

       The number of 3,765,754 units of warrants allotted to the
Company's directors and the Company and the Subsidiaries'
employees may be exercised every 3 months during a period of
warrants.

       2.4.2 Exercise rights

       Warrant holders may exercise their rights either in whole
or in part

       2.4.3 Exercise date

       During the exercise period, warrant holders may exercise
their rights to purchase ordinary shares during the office hours
of the Company of the last working days of March, June,
September and December.

   2.5 Financial assistance to employees by the issuing company
in relation to a source of funds (if any)

                        - None -

   2.6 Effect to the shareholders upon the issue of warrants

       Upon the exercise of total warrants issued, the dilution
effect will be five (5.00) percent of the total issued shares in
the Company.

   2.7 Substantial information that might affect the investors'
decision (if any)

                      - None -

   2.8 Procedures for unallotted warrants

       At the end of the Project Duration, all warrants, which
are unallotted or remained from the previous allotments, will be
cancelled.

   2.9 Purpose and necessity of the warrant issuance under the
ESOP plan

       To motivate the employees to perform their best to
enhance the operating results of the Company and the
Subsidiaries.

3. Approved the allocation of 3,765,754 ordinary shares at the
par value of Bt10 from the total of 4,684,911 unpaid ordinary
shares in order to reserve for the exercise of warrants.

4. Approved the amendment of the Company's Articles of
Association by adding section 7, Miscellaneous, clause 44 to be
read as follow:

            Section 7
            Miscellaneous

    Clause 44 The Company's seal will be as follow

              (Company's Seal)

Samart Corporation has met, negotiated and submitted more
information to most of the creditors and got quite positive
feedback with regard to their support on the Company's debt
restructuring plan.

Details of preliminary Debt Restructuring:

* The Company's debt will be reduced from existing Bt8.7 billion
to be Bt3.975 billion with 6 years tenure of payment.

* The remaining debt will be paid by transferring of 10.5
million of SHIN shares to creditors for a total consideration of
Bt2.2 billion. The rest of Bt2.525 billion debt will be settled
by conversion from debt to equity.

* After such conversion, the creditors will be the shareholders
of the Company and its subsidiaries by:

- Hold approximately 18 percent of SAMART's shares;

- Hold approximately 9 percent of SAMTEL's shares;

- Hold 30 percent of sharers in SAMART's subsidiaries exclude
SAMTEL group.

* After the restructuring, the Company's interest payment will
be reduced from Bt550 million to Bt250 million per annum.


SIKARIN PUBLIC: Announces Summary Of Rehab Plan
-----------------------------------------------
The Stock Exchange of Thailand announced Sikarin Public Company
Limited might be delisted from the SET because the shareholders'
equity of the company has a negative value, according to the
regulation of SET re: the delisting of listed company B.E. 2542.

The company and Adkinson Securities Public Company Limited, the
financial advisor, have prepared the rehabilitation plan whose
summary is presented therein:

1) The analysis of problems and their causes.

   1.1) Financial problem.

       The company faced financial problem during the year 1997-
1999, which resulted in the company's consolidated balance sheet
as of December 31, 1999 showed an accumulated loss of Bt1,605.60
million and a deficit of Bt317.41 million. The important reasons
for such a huge amount of loss were the losses from devaluation
of assets and other non-operating losses, which equals to the
total amount of Bt959.80 million for three consecutive years.

   1.2) Operating problem.

      The operating result of the hospital, which is the core
business of the company, faced operating losses during the year
1996-1998. During that time, the company's profit and loss
statements showed losses from operations at the amount of
Bt31.79 million, Bt94.63 million and 42.24 million,
respectively, or equal to 7.51 percent, 39.01 percent and 12.82
percent of the revenue from hospital business.

      One important reason for such losses was the sale of
Samrong General Hospital, in 1996 as a result the company faced
a sharp decrease of total revenue from Bt425.45 million in 1996
to Bt242.58 million in 1997. By the time, the company had only 2
hospitals left in operation, and those two hospitals had been in
the business for only two years.

      Another reason for a huge amount of operating losses were
the selling and administration expenses, which was so high as 40
percent of revenue as well as the bad debt and doubtful accounts
which was as high as 14 percent of revenue.

2) Plan for problem solving.

   2.1) The problem solving which was done during the year 1999-
2000.

      2.1.1) Financial problem solving.

      The Company has negotiated for debt restructuring with
each of the creditor of the company and subsidiaries since 1999.
The result of such negotiations can be categorized into 2 groups
as follows:

     a) The debt paid with hair-cut.

    Amount of debt before negotiation  Bt298.47 million

    Amount paid     Bt68.40 million

    Gain from debt restructuring   Bt230.07 million

    b) The debt restructured in term of payment and interest
rate.

    Amount of debt before negotiation    Bt499.84 million

    Amount as of Dec. 31, 2000      Bt482.08 million

The current amount equals to 62.15 percent of total debt as
shown in the consolidated balance sheet as of Dec. 31, 2000.

    2.1.2)  Operating problem solving.

       The company had improved the hospital operation in
several areas, such as

       a) adjustment of pricing,

       b) improvement of hospital quality to the industrial
standard,

       c) improvement of the quality of other services,

       d) joining the government's social security program,

       e) finding revenue in other businesses relating to the
hospital operation,

       f) economizing in the cost of hospital operation,

       g) economizing in the selling and administration
expenses.

As a result of the improvements mentioned above, the company had
the revenue from hospital operation at the increasing rate of 23
percent per year during 1999-2000. The company could also
decrease the selling and administration expenses to the level of
19 percent of revenue in 2000. Consequently, the company had a
net profit of Bt239.27 million and a decreasing deficit of
Bt71.32 million by the year 2000.

   2.2) The proposed plan for problem solving.

      Objective of the plan: To make the shareholders' equity,
which was Bt71.32 million as of year end 2000, to show a
positive value. Policy of the plan:

      a) To emphasize in the core business, the hospital
operation, which is less risky and the management team has long
time experience.

      b) To accomplish the objective of the plan, the management
team will adopt the plan, which has the least effect to the
company and shareholders.

     Details of the plan:

     2.2.1) Financial problem solving.

         The company will continue to negotiate the remaining of
the debt of the company with 3 financial institution creditors
with the total amount of Bt92 million as well as the remaining
debt of a subsidiary, which has the total amount of Bt18
million. The company expects to accomplish all debt
restructuring in 2001.

     2.2.2) Operating problem solving.

        The company has a policy to maintain the improvement for
the better efficiency and effectiveness of the hospital
operations. During the preparation of this rehabilitation plan,
the company has been upgrading the ISO standard from ISO 9002 to
the higher standard of ISO 9001 version 2000.

        The company is also expecting to get the HA (Hospital
Accreditation) standard, which is on the process of approval by
an institution under the Ministry of Public Health. The company
expects to get both standards in 2001.

        The goal of solving the operating problem is shown in
the financial projections.  The revenue from hospital operation
is expected to increase during 2001-2003 at the rate of 14.96
percent, 14.76 percent and 9.19 percent per year respectively.
The selling and administration expenses are to be maintained at
19 percent of revenue throughout the 3 years.

According to the rehabilitation plan described above, and if
there is no other situation where the company would have to book
an extraordinary loss or expense, the company expects, as the
earliest, to have a positive value in the shareholders' equity
by the 2nd quarter of the year 2003.


TPI POLENE: Reports Progress Of Equity Raising
----------------------------------------------
TPI Polene Plc and its advisors, CLSA Singapore Pte Ltd and
Seamico Securities Plc Wednesday made presentations to around 50
creditor representatives in Bangkok advising them of the status
of negotiations with four potential strategic partners, all
vying for an equity stake in Polene.

The confidential presentations covered the substantial progress
made since the appointment of Polene's advisors on 29 March 2001
and stated that selected strategic investors would commence due
diligence overdue next two to three weeks, subject to
confirmation of the Equity Raising process by the Scheme
Creditors.

Commenting on progress, Robert Hanka, Director and Head of
Mergers & Acquisitions of CLSA said, "We believe a lot has been
achieved in the very short time made available to us and we are
aiming to complete the entire process by the end of the year."

"Investor feed back and the willingness of several of the
World's largest cement producers to commit to the process in
writing has been of tremendous encouragement," he added.

Orapin Leophairatana, Senior Executive Vice Present of Polene,
also said, "Generally, the support of our major creditors at
this critical point in negotiations is essential if we are to
achieve our goals. We see a long term commitment to Polene by a
major international cement producer as a clear demonstration
that we are working towards an acceptable solution to the
Company's debt problems."

Polene is one of Thailand's largest cement producers, with
current capacity of nine million tons per annum and the ability
to increase this to over 12 million tons. It is recognized as
one of the most efficient cement producers in Asia.

A further presentation was made in Singapore on 5 July 2001.


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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