/raid1/www/Hosts/bankrupt/TCRAP_Public/020514.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, May 14, 2002, Vol. 5, No. 94

                         Headlines
A U S T R A L I A

ANACONDA NICKEL: Director Andrew Forrest Retires
AQUARIUS PLATINUM: Appoints New Finance Director
AUSTAR UNITED: Q102 Result Shows 95% Earning Improvement
CHROME GLOBAL: Offer's Closing Date Extended to May 24
DIGITAL NOW: Lodges March Ops Report to US Bankruptcy Court

HIH INSURANCE: Royal Commission Issues Hearing Schedule
OPEN TELECOMMUNICATIONS: Requests Continued Suspension
TRANSURBAN GROUP: MIG Settles Purchase Agreement Final Payment
UNITED NETWORKS: S&P Places Ratings On CreditWatch Negative


C H I N A   &   H O N G  K O N G

ALLEN PERKINS: Winding Up Sought by Unique Profit
INTERAD ASIA: Hearing of Winding Up Petition Set
JAWS SEAFOOD: Winding Up Petition Hearing Set
MISSKAT.COM: Petition to Wind Up Pending
NAM FONG: Creditor Dismisses Winding-Up Petition

TOM.COM: Loss Exceeds Forecasts


I N D O N E S I A

ASTRA INTERNATIONAL: DebtTraders Comments on Debt Restructuring
BANK INTERNASIONAL: BI Governor Urges Government Bail-Out
PT DANAREKSA: Debt Restructuring Plan Presentation Pending


J A P A N

ASAHI MUTUAL: Sells 20% Stake in REIT Co
DAIEI INC: Plans to Seek JPY50B in Assistance for Two Firms
DAIWA BANK: 5,000-Job Cut Likely by April 2006
HITACHI LTD: Teams Up With Itochu in Info Systems Development
JAPAN AIRLINES: US$285M Loss Linked to Terrorist Attacks

MIZUHO HOLDINGS: FSA to Release Inspection Results
SNOW BRAND: Creditors Consent to Rehab Plan
SOFTBANK CORP.: Domestic Fund Seeks to Buy Aozora Bank Stake


K O R E A

DAEWOO MOTOR: Gunsan Plant Posts $625,000 Profit
DAEWOO MOTOR: New Company to Produce 900,000 Cars Yearly
HYNIX SEMICON: Creditors See New Board Formation in July
HYNIX SEMICON: Hwang Named Top Credit OIC
KOREA ELECTRIC: Shareholders Name Kang President

KOREA LIFE: Govt to Reevaluate Assets Before Concluding Sale
SEOULBANK: Hana Bank Likely to Bid

* Chaebols Vie for State-Owned Giant Firms *



M A L A Y S I A

BRIDGECON HOLDINGS: Toong To Provide Audit Committee Guidance
DENKO INDUSTRIAL: Unit Faces Suit Over Defaulted Payment
GLOBAL CARRIERS: Marina Scheme of Arrangement Further Adjourned
KIARA EMAS: Court Gives Six-Month Restraining Order
LION GROUP: FIC, MITI Approve Amended GWRS Proposal

MBF HOLDINGS: Issues Auditor's Report Explanation
NALURI BERHAD: Won't Comply With Proposals Submission Date
PANCARAN IKRAB: SC Grants Proposed Workout Scheme Extension
RENONG BERHAD: Unit's RM80,957,556 Asset Disposal Completed
TALAM CORPORATION: Registrar Strikes Off Dormant Subsidiaries

TRANS CAPITAL: Receiver Appointment Delays Report Submission
UCP RESOURCES: Provides Default in Payment Update


P H I L I P P I N E S

NATIONAL POWER: Govt Orders Review of Power Purchase Contracts
NATIONAL POWER: IFC Offers Fund for Asset Buyers


S I N G A P O R E

ASIA PULP: Agrees on Terms for Rescheduling $13B Debt


T H A I L A N D

BANGKOK RUBBER: Files Business Reorganization Petition
EMC PUBLIC: Registered Paid-up Capital Stands at Bt590,278,160  
FUEL PIPELINE: BAFS Signs Claims Agreement for Sale
STAR PETROLEUM: Debt Restructuring Completed
THAI ENGINE: Amends Article of Association

THAI TELEPHONE: Posts April 2002 Warrant Exercise Results

     -  -  -  -  -  -  -  -

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

        
ANACONDA NICKEL: Director Andrew Forrest Retires
------------------------------------------------
Anaconda Nickel Limited announced Mr Andrew Forrest's retirement
from his post as deputy chairman and non-executive director of
the company.

Paying tribute to Mr Forrest, Chairman James Campbell said,
"Since Anaconda was formed in 1994, Andrew has made an enormous
contribution to the Company.

As Anaconda's founding Managing Director and Chief Executive,
Andrew was a key player in the development of Australia's nickel
laterite industry and his vision, energy and enterprise in
developing the Murrin Murrin nickel cobalt project, have been
widely acknowledged. On behalf of the board, I thank Andrew for
his contribution."

In response Mr Forrest said, "After giving 8 years of my life to
this company, I'm looking forward to pursuing new opportunities
leaving Anaconda in good hands confident in management's
ability, our unique technology and the potential of Western
Australia's vast laterite nickel fields".

Chief Executive Officer Peter Johnston said, "As the founder of
Anaconda, Andrew defied the odds to establish the world class
Murrin Murrin nickel cobalt project. Andrew's legacy will
continue to shape the Company's destiny long after his
departure. I know Andrew wishes the Company well, and remains
confident that Anaconda will continue to meet its challenges
going forward. On behalf of the management and staff of
Anaconda, I wish to express our gratitude for Andrew's
contribution and wish him every success in the future".

Commenting Mr Ivan Glasenberg, CEO of Glencore International AG
and a non-executive director of Anaconda said, "I would like to
thank Andrew Forrest for the energy and commitment he has put
into Anaconda and the Murrin Murrin Project. In particular, I
pay tribute to his achievement in initiating and developing the
first phases of Murrin Murrin. The continued progress at the
plant is a solid base for the project's success and represents
an endorsement of Andrew's original vision."


AQUARIUS PLATINUM: Appoints New Finance Director
------------------------------------------------
Aquarius Platinum Limited announced the appointment of Mr Walter
(Wally) Vorwerk B Com, CA (SA), (51) as Finance Director with
effect from 27 May 2002. Prior to this appointment, Mr Vorwerk
was Manager Corporate Finance at AngloGold Limited.

Says Stuart Murray, CEO of Aquarius, "We're delighted with the
appointment of Wally who has 25 years experience in the mining
industry at this crucial phase in Aquarius' development. Our
growth strategy is in place and delivering according to plan.
The restructuring of our ownership structure is now in place and
Aquarius is poised to join the industry majors as the investment
of choice in the PGMs sector. Wally's presence will further
strengthen our Johannesburg-based executive team, bringing with
him extensive experience in corporate governance, international
accounting standards and practices, equity and capital markets
and mergers and acquisitions.

Wally has had extensive executive and operational experience at
all levels within the southern African mining industry and has
held directorships of many industry-related companies. But more
than that, he has overseen and been involved in numerous merger,
acquisition and disposal transactions within AngloGold and has
had exposure to corporate finance and accounting matters at an
international level. Wally is well known in international
banking, insurance banking, insurance and investment circles and
is as committed as we are to continuing to deliver the
performance, growth and returns that our shareholders have come
to expect from Aquarius."

Mr Vorwerk's contract of employment includes a grant of 400,000
options exercisable at GBP 3.43 in line with terms of the
Aquarius Option Plan. The grant of options is subject to
approval at a Meeting of shareholders, which will be held in due
course.


AUSTAR UNITED: Q102 Result Shows 95% Earning Improvement
--------------------------------------------------------
Austar United Communications Limited released its first quarter
result for 2002, which showed a dramatic improvement in
financial performance following the Company restructure at the
end of 2001.

Highlights of the result included:

    * a 95% improvement in the EBITDA position to a loss of $1
million, compared to $21 million in Q4 2001;

   * gross margin improvement of 10%, up to $34.2 million from
$31.2 million in Q4 2001;

   * a 26% decrease in operating expenses to $24.7 million, down
from  $33.3 million in Q4 2001;

   * a 48% improvement in general & administrative expenses to
$9.4 million compared to $18 million in Q4 2001.

   * a reduction in operating loss, excluding significant items,
from $145 million in Q4 to $44.6 million in Q1 2002, of which
$37 million was (non cash) depreciation and amortization; and

   * a 60% decrease in capital expenditure down to $12.9 million
from $32.1 million in Q4 2001.

"These results demonstrate that Austar is on track to meet its
financial targets," said John Porter, Chief Executive Officer.
"The decisions we took last year to reshape the company are
obviously having a positive effect on the bottom line.

"Our first target is to achieve positive EBITDA for the year
2002 and it is clear from this result that we are well placed to
do that," Mr Porter commented.

In subsequent quarters, the revenue line will benefit from a
rate increase, which Austar implemented in May. If the
Australian dollar improves further, Austar will also see a
reduction in programming expenses.

"In addition to EBITDA performance it is clear that we have
drastically reduced capital expenditure. Going forward capital
expenditure will consist chiefly of that necessary for customer
acquisition," said Mr Porter

"Another major change fully reflected for the first time in this
quarter was the effect of the removal of our requirement to
equity account for the losses of TelstraClear in New Zealand.

"Having successfully reshaped the business to capture real
benefits at the gross margin and EBITDA lines by efficiently
utilizing current revenues, we are now focused on reigniting top
line growth," Mr Porter concluded.


CHROME GLOBAL: Offer's Closing Date Extended to May 24
------------------------------------------------------
The Directors of Chrome Global Limited have resolved to extend
the offer period of the current share offer by 14 days. The
closing date is now 24 May 2002.

The primary purpose of the Share s Offer is to obtain short term
working capital for the activities of the Company.  This funding
is required to enable the Directors the time necessary to pursue
longer term funding for Chrome.  


DIGITAL NOW: Lodges March Ops Report to US Bankruptcy Court
-----------------------------------------------------------
Digital Now Inc on Thursday released the monthly filing it is
required to make to the United States Bankruptcy Court whilst it
is under Chapter 11 Administration. This filing covers the month
of March 2002.

The filing consists of a monthly operating report that includes
the following items:

   (a) Financial Background Information;  
   (b) Income Statement; and
   (c) Cash Distribution Summary Report


HIH INSURANCE: Royal Commission Issues Hearing Schedule
-------------------------------------------------------
The HIH Royal Commission's sitting days will resume on Monday 13
May, and will sit each Monday to Friday in May and June.

Hours of Sitting

The sitting times will be Monday to Thursday 9:30AM to 11AM,
11:15AM to 12:45PM and 2:15PM to 4:30PM unless there is a mid
afternoon break when the hearings will conclude at 4:45PM.
Fridays 9:15AM to 11:00AM, 11:15AM to 1:00PM.

Commission Location

Level 8, 'The Landmark' 345 George Street, Sydney


OPEN TELECOMMUNICATIONS: Requests Continued Suspension
------------------------------------------------------
Open Telecommunications Limited requested on Monday a
continuation of suspension of quotation of its shares in
accordance with ASX Listing Rule 17.2.

The Company has reached an in principal agreement in respect to
the resolution of a dispute with a customer. As advised to ASX
the dispute is the subject of proceedings commenced in Supreme
Court of New South Wales. The parties to the dispute will be
seeking appropriate orders in the Supreme Court of New South
Wales to stand proceedings over until Monday 20 May 2002, or
such other date as the court considers appropriate.

OTT requests that the suspension of trading be extended until
the commencement of trading on 20 May 2002, or an earlier date
if the parties formalize and document the in principal agreement
earlier than 20 May 2002.

0TT considers that suspension of its shares from quotation is
necessary as, during the suspension period, the parties will
settle and document the proposed revised contractual
obligations. The terms of the in principal agreement may have a
material effect on the company's share price, but which cannot
be disclosed until ultimately agreed between the parties.
Therefore, the trading in the company's shares during this
period, if the suspension is not granted, may not occur on a
fully informed basis from time to time.

The Company is not aware of any reason why the suspension should
not be granted.


TRANSURBAN GROUP: MIG Settles Purchase Agreement Final Payment
--------------------------------------------------------------
Macquarie Infrastructure Group announced that under a Forward
Purchase Agreement dated 27 September 1996 between
MIG and Obayashi Corporation, MIG agreed to purchase 50,000,000
Transurban Group stapled securities with the settlement date
being in December 2002 or earlier in certain circumstances.

The final settlement payment of $62,500,000 occurred late
Thursday, earlier than the anticipated December 2002 date. The
total price paid for the Transurban Group securities is
$112,875,000. The effective entry price for the securities is
$2.52 per security.

The securities acquired are now freely tradeable. MIG's policy
in relation to the holding of listed investments is that unless
there is strategic rationale to hold a listed investment, that
interest should be disposed of in a manner and timeframe that
would provide the best result for MIG security holders.

In light of the current market and having regard to
opportunities available to Transurban Group, including those
being pursued with MIG such as Western Sydney Orbital, MIG
currently has no intention of reducing its Transurban Group
stake.

MIG's stake now totals 55 million securities.


UNITED NETWORKS: S&P Places Ratings On CreditWatch Negative
-----------------------------------------------------------
Standard & Poor's said Friday that it had placed its `BBB+/A-2'
credit ratings on UnitedNetworks Ltd. on CreditWatch with
negative implications. The action follows the placement of
UnitedNetworks Ltd.'s major shareholder, Aquila Inc. (`BBB/A-
2'), on CreditWatch negative after it announced its acquisition
of U.S.-based utility Cogentrix Energy Inc. (BB+/Watch Pos/-).

"The ratings on Aquila Inc. will have a constraining influence
on those of UnitedNetworks as long as it continues to be a major
shareholder," said Mark Legge, associate director, Corporate &
Infrastructure Finance Ratings.


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


ALLEN PERKINS: Winding Up Sought by Unique Profit
-------------------------------------------------
Unique Profit Limited is seeking the winding up of Allen Perkins
Insurance Brokers Limited.  The petition was filed on April 12,
2002, and will be heard before the High Court of Hong Kong on
July 24, 2002 at 9:30 am.

Unique Profit Limited holds its registered office at Room 301,
Far East Consortium Building, No. 121 Des Voeux Road Central,
Hong Kong.


INTERAD ASIA: Hearing of Winding Up Petition Set
------------------------------------------------
The petition to wind up Interad Asia Limited will be heard
before the High Court of Hong Kong on June 5, 2002 at 9:30 am.  
The petition was filed with the court on February 21, 2002 by
Sokell, Natasha Louise of 2nd Floor, 145 Third Street, Sai Ying
Pun, Hong Kong.


JAWS SEAFOOD: Winding Up Petition Hearing Set
---------------------------------------------
The petition to wind up Jaws Seafood Restaurant Company Limited
is scheduled for hearing before the High Court of Hong Kong on
June 12, 2002 at 9:30 a.m.

The petition was filed with the court on February 22, 2002 by
ChungWai Yan of Flat B, 10th Floor, City Centre Building, 114-
149 Gloucester Road, Wanchai, Hong Kong.  


MISSKAT.COM: Petition to Wind Up Pending
----------------------------------------
The petition to wind up Misskat.com Limited is set for hearing
before the High Court of Hong Kong on June 5, 2002 at 9:30 am.  
The petition was filed with the court on February 20, 2002 by Ho
Wing Kit of Flat E, 14th Floor, Block 4, Handsome Court, Tuen
Mun, New Territories, Hong Kong.  


NAM FONG: Creditor Dismisses Winding-Up Petition
------------------------------------------------
Nam Fong International Holdings Limited announced in regards to
its Proposed Dismissal of Winding Up Petition that the Creditor
has agreed to dismiss the Winding Up Petition, following the
receipt by the creditor of an undertaking honor to two posted
dated checks signed by the Company on the settlement of the
whole sum by two installments, the first installment by mid-May
2002 and the last installment by the end of June 2002.

The relevant consent summon has been filed to the Court on
Friday and after which the order of dismissal was issued by the
court in the adjourned hearing held on Monday. Further
announcements will be made by the Company as and when
appropriate.


TOM.COM: Loss Exceeds Forecasts
-------------------------------
Tom.com said last week that its first-quarter net loss widened
nearly 8 percent to HK$75 million.  The Company's loss, which
moved beyond its Internet portal roots to include publishing and
outdoor advertising firms in Greater China, was just above the
net loss of HK$74 million forecast by brokers Cazenove Asia.

The results, weighed down by tom.com's restructuring of its
online business in the quarter ended March 31, compared with a
year-earlier net loss of HK$70.3 million. Revenue rose 8 percent
to HK$264.52M from the previous quarter as its Taiwan-based unit
Business Weekly, which had 40 magazines and 8,000 book titles,
contributed to results for the first time since Tom.com bought
it last year.

Tom.com started charging users for email services last year,
hoped to become the largest revenue generator among Chinese
Internet portals by the end of 2002.  The company's print media
business contributed most of the 13 percent quarterly growth in
offline revenue for the period.  Businesses such as magazines
and sports marketing accounted for more than 85 percent of
tom.com's revenue in the quarter.


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


ASTRA INTERNATIONAL: DebtTraders Comments on Debt Restructuring
---------------------------------------------------------------
DebtTraders Analysts, Daniel Fan (852-2537-4111) and Blythe
Berselli (1-212-247-5300) say, "Astra International might
combine the rescheduling with other corporate actions, including
asset disposal and right issue, etc, which the Company has not
come into conclusion. The rescheduling aims to provide a total
solution for the restructured debt although we believe the
Company should have a better alternative."

The Company's cash shortfall for this year is around $50-70
million (9%-12% of the amount due this year), which is not
substantial relative to approximately $580 million debt due this
year, DebtTraders noted.

"The Company's concern is not for this year payment. If it had
arranged a short-term solution for this year, the problem would
be delayed to next year. It seems the Company wants more time to
disposal of its assets, probably due to valuation or
reorganization concerns. Since there is no deterioration on the
Company's fundamentals, we believe the remaining uncertainty is
largely the terms of the restructuring," Fan and Berselli said.

The price of the Astra's 4.809% floating rate note due on 2005
(ASII05IDS1) trades between 72 and 75. Go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=ASII05IDS1
for real-time bond pricing.

According to DebtTraders, the price of the Astra III 0% bonds
due on 2006 (ASII06IDS1), which seemed immunized, are trading
between 45 and 50. For real-time bond pricing information, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=ASII06IDS1.


BANK INTERNASIONAL: BI Governor Urges Government Bail-Out
---------------------------------------------------------
Bank Indonesia Governor Syahril Sabirin urges the state to
rescue the financially beleaguered Bank International Indonesia
rather than close it, AsiaPulse reports.

"If BII is closed, the government must settle all of its
obligations, and this involves a huge amount. The government
better rescue the bank so that it need not spend a huge sum of
money," Sabirin said.

The Indonesian Bank Restructuring Agency (IBRA) has been making
an effort to rescue the bank through a rights issue, he said.

Bank Internasional Indonesia reported a net loss of Rp4.131
trillion for 2001. It also revealed an operating loss of Rp3.731
trillion. Loss per share was 45 rupiah.


PT DANAREKSA: Debt Restructuring Plan Presentation Pending
----------------------------------------------------------
PT Danareksa will conduct an informal meeting with creditors in
Singapore on May 16, 2002, to further discuss its US$173 million
debt restructuring plan, Bisnis Indonesia reports quoting
company Vice President Corporate Secretary F. Helianti
Sastrosantoso.

The debt restructuring plan, which consists of three options:
debt rescheduling, buy back, and incentive allotment, will be
presented to the creditors late this month.

"Restructurization of our company debt is underway," she said,
adding that the next talk will be held late this month, in which
the options will be discussed.

"The options was initially planned in late April 2002, but KPMG,
Danareksa financial advisor suggested a postponement until the
end of May 2002 since it was impossible to do it at the end of
April," Sastrosantoso concluded.

Danareksa debt has mounted to US$173 million in Tranche A and
Tranche B, despite another debt of Rp700 to Rp800 billion.


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


ASAHI MUTUAL: Sells 20% Stake in REIT Co
----------------------------------------
Asahi Mutual Life Insurance Co. has divested from a real estate
investment trust (REIT) firm after Tokyo's life insurance
company decided REIT's are not essential to its key operations,
Dow Jones Newswires reported, citing the Nihon Keizai Shimbun.

Asahi Mutual had a 20 percent stake in the Y350 million Tokyo
Realty Investment Management Inc. Tokyo Tatemono Co., Yasuda
Mutual Life Insurance Co., Taisei Corp. and Yasuda Real Estate
Co. each had held 20 percent.

The Company recently sold a 6 percent stake to Tokyo Tatemono, 4
percent to Yasuda Mutual and the remaining 10 percent to Yasuda
Fire & Marine Insurance Co.

Early this year, Asahi Mutual said it was seeking a capital
injection from its major creditor banks, such as Dai-Ichi Kangyo
Bank, in order to improve its financial status.


DAIEI INC: Plans to Seek JPY50B in Assistance for Two Firms
-----------------------------------------------------------
Kobe supermarket operator, Daiei Inc. is going to request about
50 billion yen in financial assistance from Bank of Fukuoka and
other local financial institutions for two of its wholly owned
group companies affiliated with the Fukuoka Daiei Hawks baseball
team, Japan Times reported.

The capital infusion would partly be used to cover cumulative
losses of about 20 billion yen incurred by the Fukuoka Dome,
which operates the Hawks' home stadium, and Fukuoka Daiei Real
Estate, which manages the adjoining Sea Hawk Hotel and resort
complex, the sources said.

Daiei has run up 140 billion yen in debts from its baseball-
related operations.

In addition to the outside financial assistance, the Fukuoka
Dome and Fukuoka Daiei Real Estate will reduce their combined
capital of 35 billion yen to almost zero.

The proposed capital reduction is aimed at reducing the Daiei
group's overall interest-bearing debt from the current Y1.66
trillion to Y1.21 trillion by the end of next February by
removing the two companies from its list of group firms subject
to consolidated accounting.

One restructuring plan envisaged by Daiei involves turning part
of Daiei's holdings in the Fukuoka Dome and the Sea Hawk Hotel
and Resort complex into securities and selling them to local
interests.

In April, the Ministry of Economy, Trade and Industry (METI) has
granted Daiei tax breaks on capital increases and real-estate
sales, while the major retailer is also eligible for lower
interest rate loans from the government-affiliated Development
Bank of Japan.

Earlier that month, Daiei Inc. revealed a consolidated net loss
of Y332.51 billion (US$2.58 billion) for the business year that
ended in February, blaming the losses on increased restructuring
costs. Its current assets stood at US$9.8 billion against
current liabilities of US$22.4 billion.

The Company plans to return to profitability in the current
business year with the help of financial support from its
creditors, UFJ Bank, Sumitomo Mitsui Banking Corp. and Mizuho
Corporate Bank.


DAIWA BANK: 5,000-Job Cut Likely by April 2006
----------------------------------------------
Daiwa Bank Holdings Inc, the entity that oversees Daiwa Bank,
Asahi Bank, Kinki Osaka Bank and Nara Bank, has unveiled Friday
a management improvement program featuring the elimination of
more than 5,000 employees, reducing the total number to 17,900,
by the end of March in 2006, Japan Today reported.

Daiwa Bank Holdings, which adopted the new name "Resona Group"
in April, submitted the new plan to the Financial Services
Agency (FSA). The holding company is set to change its name on
Oct 1 to Resona Holdings Inc.

In mid-April, two shareholders of Daiwa Bank have filed a suit
with the Osaka District Court demanding its executives to pay
the bank 326 billion yen in compensation for huge losses
incurred by unauthorized bond deals at former Daiwa Bank's New
York branch.

According to the suit, the two plaintiffs, former shareholders
of Asahi Bank, became shareholders of Daiwa Bank Holdings after
Asahi joined the financial group in March.

Osaka-based Daiwa Bank Holdings, which as of March 2001 has
total assets of $122.8 billion, incurred the losses from
unauthorized trades of U.S. Treasury notes by a trader at the
bank's New York branch for 11 years from 1984.


HITACHI LTD: Teams Up With Itochu in Info Systems Development
-------------------------------------------------------------
Tokyo-based electronics components manufacturer Hitachi Ltd. is
set to form an alliance with Itochu Corp. in the area of
information systems development and building, Dow Jones
Newswires reported, citing the Nihon Keizai Shimbun.

The decision on the details of the tie-up is planned for the end
of September.

Under the plan, the partners will set up seven to eight joint
systems business groups each in charge of communications,
finances, biotechnologies and nano-technologies, among others,
whereby both companies will jointly develop the prototypes of
standard computer systems ordered from financial firms and
government agencies.

The firms have also agreed to consider joint acquisitions of
other companies and joint investments in start-up firms by
utilizing advanced IT technologies, the report added.

For Hitachi, the joint venture with Itochu, which boasts a
group-wide client base of about 30,000 will be quite beneficial.

0In April, Hitachi posted consolidated losses of 117.42 billion
yen in fiscal 2001. The Company attributed its result to a sharp
decline in global demand for semiconductors and information
technology-related products such as mobile phones.


JAPAN AIRLINES: US$285M Loss Linked to Terrorist Attacks
--------------------------------------------------------
Japan Airlines said Friday the group plunged into the red for
the year ended March 31, losing 36.73 billion yen (US$285
million) as the September 11 terrorist attacks in the U.S. hit
air travel.

On an operating basis, the country's largest air carrier posted
a loss of 11.93 billion yen last year.

JAL, however, forecasts a 23 billion yen profit in 2002-03 ahead
of a merger with another carrier, Japan Air System Co, starting
with the formation of a holding company in October, to create
the world's sixth biggest airline.

Revenues of JAL fell 5.6 percent year-on-year in 2001-02 to 1.61
trillion yen (US$12.5 billion), reflecting the poor demand for
international flights.

Tokyo-based JAL has current assets of 487.7 billion yen (US$3.9
billion) as of March 2001 against current liabilities of 529.9
billion yen (US$4.2 billion). At year-end, the Company has debt
of 839.8 billion (US$6.7 billion).


MIZUHO HOLDINGS: FSA to Release Inspection Results
--------------------------------------------------
The Financial Services Agency (FSA) will release the results of
its inspection of the computer fiasco at the Mizuho Financial
Group, Japan Today reported. Normally, the FSA does not make
public the results of inspections of financial entities.

"We should report the people what happened and what caused the
problem," Financial Services Minister Hakuo Yanagisawa said.

The Mizuho group experienced serious computer problems following
the April 1 launch of Mizuho Bank and Mizuho Corporate Bank
under Mizuho Holdings through the integration of Dai-Ichi Kangyo
Bank, Fuji Bank and the Industrial Bank of Japan.

The computer disaster disrupted the new operations of the
Chiyoda-ku, Tokyo-based bank, resulting in such troubles as
customers being double-billed for utilities charges and 7,000
automated teller machines malfunctioning.

Japan's Financial Services Agency began its on-site inspections
of the Mizuho Financial Group last Wednesday to look into the
truth and who is to blame for the group's massive computer
glitch. The Bank of Japan also began its inspection of Mizuho
Corporate Bank.

Mizuho Holdings, Inc. has total assets of $1.29 trillion as of
March 2001.


SNOW BRAND: Creditors Consent to Rehab Plan
--------------------------------------------
Snow Brand Milk Products Co.'s creditor banks have agreed to the
Company's request for 50 billion yen ($393.9 million) in
financial assistance, Dow Jones Newswires reported, citing the
Mainichi Shimbun.

In early May, Shinjuku-ku, Tokyo's struggling dairy products
maker has asked Norinchukin Bank, UFJ Holdings Inc. subsidiary
UFJ Bank and Mizuho Corporate Bank of Mizuho Holdings Inc. for
30 billion yen in aid through debt waivers and 20 billion yen in
aid through debt-for-equity swaps.

The banks studied the feasibility of Snow Brand's reconstruction
plan, under which it will slash its capital by 98 percent to 500
million yen from 27.8 billion yen and raise 10 billion yen
through third-party allotments of new shares, including
allotments to the National Federation of Agricultural
Cooperative Associations (Zen-Noh) and trading house Itochu
Corp.

Without the aid and its rehabilitation program, Snow Brand Milk
anticipated a negative net worth of up to 50 billion yen for the
current fiscal year through March 2003 due to losses from its
milk business, the liquidation in April of subsidiary Snow Brand
Foods Co. and operational restructuring.

The Yomiuri Shimbun estimates Snow Brand's special losses from
restructuring will total 80 billion yen for this fiscal year.

Snow Brand Milk Products has been hit hard by a series of
scandals, including a mass food poisoning incident involving its
milk products less than two years ago and by a beef-labeling
scandal earlier this year by its subsidiary Snow Brand Foods
Co., which disbanded in April as earnings deteriorated sharply.


SOFTBANK CORP.: Domestic Fund Seeks to Buy Aozora Bank Stake
------------------------------------------------------------
A Japanese investment fund is seeking to buy Softbank Corp.'s
48.87 percent stake in Aozora Bank, the former Nippon Credit
Bank, The Nihon Keizai Shimbun reported.

A Tokyo-based company established in March manages the fund,
whose top management includes officials from major banks, the
Ministry of Finance and the Bank of Japan, as well as lawyers
and entrepreneurs, the report added.

Sources say the unnamed fund, which aims to buy Softbank's
entire stake, will obtain its purchase funds from Japanese life
insurers, distribution firms and institutional investors.

By acquiring the stake, the investment fund wants to make Aozora
Bank into a "receiver bank" for failed Chubu Bank, as well as
use it to realign regional banks in the Tokyo metropolitan area.

Negotiations on the purchase of the shares will enter the "asset
examination" phase by month-end. The purchaser expected to be
determined next month.


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


DAEWOO MOTOR: Gunsan Plant Posts $625,000 Profit
------------------------------------------------
Daewoo Motor's commercial vehicle plant in Gunsan, in the south
of Seoul, posted an operating profit of 800 million won
($625,000) on sales of 26.5 billion won in April, marking its
first profit since its establishment in 1996.

The Gunsan plant, which produces large-sized trucks, sold 351
units last month, representing a 97.2 percent growth from 178
units in the year-earlier month, the Korea Herald reported.

"Effective restructuring, drastic cost-cutting and rising demand
for trucks in line with the reviving construction boom have all
contributed to turning around the truck plant," a company
spokesman said.

An executive from ailing South Korean carmaker said that the
Gunsan truck plant was excluded from a takeover deal with
General Motors but will face a higher chance of finding an
overseas buyer if it succeeds in attaining an annual profit of 8
billion won as scheduled.


DAEWOO MOTOR: New Company to Produce 900,000 Cars Yearly
--------------------------------------------------------
U.S. carmaker giant General Motors Corp. plans to produce more
than 900,000 cars from the Daewoo Motor Co. operations it
purchased, the Korea Economic Daily reports, citing Daewoo Motor
President Kim Seok-hwan.

GM had initially planned annual production of 700,000 units when
considering buying the assets of the bankrupt South Korean
carmaker.


HYNIX SEMICON: Creditors See New Board Formation in July
--------------------------------------------------------
The creditor banks of Hynix Semiconductor Inc. and most industry
sources say the new board of the ailing chipmaker could be
inaugurated by July 20 at the earliest as it would take at least
40 days to hold a extraordinary shareholders meeting after
Hynix's creditors carry out a debt-for-equity swap scheduled for
June 1, the Korea Herald reported.

This means a more feasible deadline for the replacement of the
Hynix board would be around July 20, the creditor banks said.

Financial Supervisory Commission (FSC) chairman Lee Keun-young
earlier said that the new Hynix board of directors would be
formed by June 25.

Regarding the July 20 deadline, an FSC official explained it had
heard of the June 25 deadline from Korea Exchange Bank (KEB),
Hynix's main creditor bank of Hynix.


HYNIX SEMICON: Hwang Named Top Credit OIC
-----------------------------------------
Korea Exchange Bank has named Hwang Hak Joong its top credit
officer in charge of Hynix Semiconductor Inc., replacing Lee
Youn Soo who resigned from Hynix's biggest creditor.

According to a Bloomberg report, Hwang will lead creditors in
selling Hynix assets and recoup part of the $4.9 billion debt
the chipmaker owes lenders. The new OIC will oversee the bank's
Hynix team, headed by Chung Hyung Ryang with credit officers
Kang Kyung Moon and Song Joo Kyung.

Creditors had been hoping to sell Hynix's core computer- memory-
chip operations to larger U.S. rival Micron Technology Inc. Last
week, five months of talks failed when Hynix's board overruled
creditors' approval for Micron's $3 billion offer.

The Ichon-based computer memory chipmaker is under pressure to
divide and sell operations, as lenders are owed more than $5
billion.


KOREA ELECTRIC: Shareholders Name Kang as President
---------------------------------------------------
Shareholders of Korea Electric Power Corp. (KEPCO) elected Kang
Dong-suk, the former president of Incheon International Airport
Corp, as the state-run utility company's new President Saturday,
the Korea Times reported.

Kang replaces Choi Su-byong, who resigned.

His election will become official when President Kim Dae-jung
approves the choice at the recommendation of the Commerce,
Industry and Energy Minister.

Shareholders also elected An Wang-sun as auditor, and Park Hi-
kap, Park Sun-yong and Song Ki-taek as standing directors during
a meeting last Saturday.

The government is trying to sell KEPCO's power generation units
by the end of 2009 under a privatization scheme. Workers of the
units that have been spun off from KEPCO went on a strike in
February to protest the government's privatization plans.

As of June 30 2001, Seoul's electric utility company has current
assets of $3.25 billion against current liabilities of $7.2
billion.


KOREA LIFE: Govt to Reevaluate Assets Before Concluding Sale
------------------------------------------------------------
The Korean government has decided to reevaluate the assets of
Korea Life Insurance Co. before concluding the talks for the
sale of the insurer to a consortium led by the Hanwha Business
Group, Asia Pulse reported.

"We will soon ask Merryll Lynch, the lead manager for the sale
of KLI, to reassess the value of KLI as the insurer is expected
to produce hundreds of billions of won in profits in the fiscal
year which ended in March," a finance ministry official said.

The reassessment will be announced in June.

Hanwha Group has in March offered to buy a 51 percent stake for
450 billion won in Korea Life, to which the government has
injected about 3.5 trillion won in public funds.

The state-run Korea Deposit Insurance Corporation, which owns
KLI, has agreed to sell it for around 1.1 trillion won.


SEOULBANK: Hana Bank Likely to Bid
----------------------------------
Hana Bank may participate in the bid for the acquisition of
Seoul Bank next month, the Korea Herald reported.

Industry sources believe that Hana is considering purchasing
Seoul Bank in case it fails to clinch a merger deal with Korea
First Bank.

Hana Bank President Kim Seung-yu said that nothing has been
decided yet, but indicated he is interested in the bid.

The Korean government, the largest shareholder of Seoulbank, is
trying to sell the ailing South Korean bank to recoup some of
the more than $4 billion it spent bailing out the bank during
the 1998 financial crisis. It also pledged to sell the bank as
part of an International Monetary Fund-led bailout package in
late 1997.

The government has hired Goldman Sachs Group Inc. as a
consultant to find a buyer for the bank.


* Chaebols Vie for State-Owned Giant Firms *
--------------------------------------------
Top business groups have been involved in a keen backdoor
competition to acquire large-sized state-owned firms such as KT
Corp., Powercomm, Power Generation subsidiaries of Korea
Electric Power Corp. (KEPCO), and Korea Gas Corp., the Digital
Chosun reported.

Several struggling firms have also been on sale, including Korea
Life Insurance, SeoulBank, Korea Express, and Hyundai
Petrochemical Co.

The sale of telecommunications giant, KT Corp., attracted the
most attention from the nation's top groups, including Samsung,
LG and SK. The government is expected to market its 28.3 percent
stake in KT on Friday and Saturday this week.

Meanwhile, LG, SK and Hanwha of Korea, and Mirant and El Paso of
the United States are said to be interested in the two power-
generation units of KEPCO.

KEPCO already received acquisition proposals for Powercomm, its
communications network operator, on April 17, which were
submitted by six Korean firms, including a consortium led by LG
group's Dacom, Hanaro Telecom, Thrunet, and Onse Telecom. KEPCO
will be selecting one or two negotiating partners among the six
next month.

State-run Korea Gas is going to split the firm into three major
operations and sell off two of them within this year. Several
domestic firms, including LG Refinery and SK, and foreign firms
such as Exxon-Mobile and Royal Dutch Shell are the likely
bidders for the Korea Gas units.


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


BRIDGECON HOLDINGS: Toong To Provide Audit Committee Guidance
--------------------------------------------------------------
Bridgecon Holdings Berhad (Special Administrators Appointed),
pursuant to its earlier announcement made to KLSE on 3rd May
2002, informed that one of the Special Administrators of the
Company, namely, Mr. David Siew Kah Toong (MIA No: 2469) had
provided the KLSE with a written undertaking that he will sit in
all audit committee meetings and shall advise and provide
guidance to the audit committee of the Company on all matters
pertaining to financial management and financial reporting so as
to assist the audit committee in its decision making.

The Company furthered informed that BHB does not comply with
paragraphs 15.02, 15.10 (1) (a) and (b), 15.11, 15.19 and 15.20
of the LR and the KLSE had granted the Company vide its letter
dated 30 April 2002, an extension of time until 31 December 2002
to comply with the aforesaid requirements.

As imposed by KLSE, the Company shall furnish quarterly report
to KLSE on the Company's efforts to comply with the aforesaid
requirements.

Presently, these BHB audit committee members are non-executive
Directors:

   1. Mohd Razali Jaafar - Chairman

   2. Dato' Raduan Md Taib - Member


DENKO INDUSTRIAL: Unit Faces Suit Over Defaulted Payment
--------------------------------------------------------
Denko Industrial Corporation Berhad informed that Skiva
Marketing Sdn Bhd, a wholly owned subsidiary of Denko had been
served a writ of summons (dated 25 March 2002) and statement of
claim (dated 6 September 2001) on 8 May 2002, filed by Kerajaan
Malaysia (Lembaga Hasil Dalam Negeri) in the Kuala Lumpur High
Court (Suit No. S1-21-157-2002) for a sum of RM505,405.59 and
continuing interest, allegedly due from default in payment for
income tax for year of assessment 1993 and 1997.

The expected losses are:

i) The plaintiff's claim against SM for the following:

   a) The total sum of RM505,405.59 with interest of 8% per
annum from the date of judgment until date of full settlement

   b) Legal costs

   c) Such other relief as the Honorable Court thinks fit

ii) Legal fees arising from defending the suit

Denko and SM do not expect any material operational and
financial impact arising from the suit as the amount claim have
been partially provided for (under-provision of RM91,000.00) in
the accounts of SM. The management of SM has initiated
negotiation with LHDN to workout a proposed settlement with
funds deriving from the Proposed renounceable rights issue of
shares with warrants attached (gross proceeds RM65,783,723.00),
one of the corporate proposals approved by Securities Commission
on 16 April 2001. The Securities Commission vide its letter
dated 4 April 2002, has approved Denko's application for a
further extension of time up to 15 October 2002 to implement the
Corporate Proposals. The solicitors of SM have been instructed
to defend the suit.

Cost of investment of Denko in SM is as follows:

Investment (May 1997) RM6,672,070.00
Provision for diminution in value (March 2000) (RM4,814,433.00)
---------------------------
RM1,857,636.00
Provision for diminution in value (March 2001) (RM1,857,636.00)
---------------------------
RM 1.00
================


GLOBAL CARRIERS: Marina Scheme of Arrangement Further Adjourned
---------------------------------------------------------------
The Board of Directors of Global Carriers Berhad advised in
regards to the Proposed Composite Scheme, the Proposed BSNC
Leasing (M) Sdn Bhd Settlement Scheme and the Proposed Non-
Financial Creditors Settlement Scheme (Proposed Revised
Schemes), that the scheme of arrangement involving Marina
Shipping (M) Sdn Bhd and its secured creditors has been
adjourned again. The date for the adjournment shall be advised
in due course.

On April 25, TCR-AP reported that the scheme of arrangement
involving Marina Shipping (M) Sdn Bhd and its secured creditors
has been adjourned to 10 May 2002.


KIARA EMAS: Court Gives Six-Month Restraining Order
---------------------------------------------------
Kiara Emas Asia Industries Berhad announced that the High Court
of Malaya at Seremban granted an application for a Restraining
Order pursuant to Section 176 of the Companies Act, 1965 to
Kiara and its subsidiary companies namely, Hup Lee Coachbuilders
Sdn Bhd and Hup Lee Coachbuilders Holdings Sdn Bhd. The
Restraining Order is valid for six (6) months effective from 22
April 2002.

Early this month, TCR-AP reported that Kiara Emas expects to
finalize its negotiations with the remaining bank creditors
prior to submission of the applications for approvals to the
relevant authorities shortly.


LION GROUP: FIC, MITI Approve Amended GWRS Proposal
---------------------------------------------------
The Board of Directors of Lion Group, which is composed of Lion
Corporation Berhad (LCB), Lion Land Berhad (LLB), Amsteel
Corporation Berhad (ACB) and Angkasa Marketing Berhad (AMB), in
reference to the further revisions to the terms of the proposed
debt restructuring exercises, divestment program and corporate
restructuring exercises (collectively referred to as the
"Amended GWRS Proposals"), announced that the Foreign Investment
Committee (FIC) and Ministry of International Trade and
Industries (MITI) have approved the relevant proposals within
the Amended GWRS Proposals that had required their respective
approvals. The relevant proposals within the Amended GWRS
Proposals that require the approval of the Controller of Foreign
Exchange, Bank Negara Malaysia have also either been approved or
approved in-principle.

The approvals from the FIC are subject to LCB, LLB, AMB and ACB
increasing their respective Bumiputera equity participation to
not less than 30% before 31 December 2003. The approvals from
the MITI to AMB are subject to AMB increasing its Bumiputera
equity participation to 30% before 31 December 2003 whilst the
approval from the MITI to LCB requires Megasteel to increase its
Bumiputera equity participation to 30% within 2 years from the
date of the approval from the Securities Commission.
The Amended GWRS Proposals remain subject to approvals being
obtained from, inter-alia:

   (i) the Securities Commission;

   (ii) the Kuala Lumpur Stock Exchange for the listing of and
quotation for the new shares and warrants to be issued pursuant
to the Amended GWRS Proposals;

   (iii) the scheme creditors whose debts are proposed to be
addressed under the Amended GWRS Proposals;

   (iv) the shareholders of the LCB, LLB, ACB and AMB and other
scheme companies;

   (v) the Amended GWRS Proposals being sanctioned by the High
Court pursuant to Section 176 of the Companies Act, 1965 and the
proposed capital reconstruction exercises under the Amended GWRS
Proposals being sanctioned by the High Court pursuant to Section
64 of the Companies Act, 1965.

Shareholders of LCB, LLB, ACB and AMB and potential investors
are requested to refer to the announcements dated 5 July 2000,
11 September 2000, 19 October 2000, 8 October 2001and 26 March
2002 for further details of the Amended GWRS Proposals.


MBF HOLDINGS: Issues Auditor's Report Explanation
-------------------------------------------------
MBF Holdings Berhad, in reply to the KLSE's Query Letter
reference ID: PL-020508-43775 in regards to the Auditors'
Report, explained that the qualification stated in the Auditors'
Report of its Annual Audited Accounts 2001:

(i) The Company had obtained approvals from the relevant
regulatory authorities and is currently in the midst of
implementing the approved restructuring exercise, which is
targeted to complete by July 2002. Pending the successful
implementation of the approved restructuring exercise,
resumption of normal operations and return to profitability of
the Group and the Company, there are significant uncertainties
that may affect the future operations of the Group and the
Company, the recovery of assets of the Group and their ability
to maintain and repay debts.

The ultimate effect of these uncertainties, which may be
material on the financial statements, cannot presently be
determined and accordingly the financial statements do not
include any adjustments that may result from these
uncertainties.

(ii) For the year ended 31 December 2001, the Group and the
Company incurred net losses of RM178,891,000 and RM99,678,000
respectively and as of that date, the Group's and the Company's
current liabilities exceeded their current assets by
RM1,414,295,000 and RM913,699,000 respectively. These factors
raised substantial doubt that the Group and the Company will
continue as a going concern. The ability of the Group and the
Company to continue as a going concern is dependent on the
successful implementation of the said restructuring exercise,
resumption of normal operations and return to profitability of
the Group and the Company.

The financial statements of the Group and the Company do not
include any adjustments to the amounts and classification of
assets and liabilities that might be necessary should the Group
and the Company be unable to continue as a going concern.

The above uncertainties have therefore, resulted in the
qualification of the Auditors' Report in the Annual Audited
accounts for year 2001


NALURI BERHAD: Won't Comply With Proposals Submission Date
----------------------------------------------------------
Alliance Merchant Bank Berhad, on behalf of the Board of
Directors of Naluri Berhad announced that the submission to the
relevant authorities in relation to the Proposals will not be
made within the time-frame as announced earlier.

On March 12, the Company announced that the submission to the
relevant authorities for the Proposals would be made within two
(2) months from the date of the announcement.

The Board has on 8 May 2002 deliberated on the matter and has
decided to withhold the submission to the relevant authorities
pending the outcome of the public tender of the controlling
block representing 44.84% of the share capital of Naluri by
Pengurusan Danaharta Nasional Berhad.

The Proposals are:

   * Proposed Bonus Issue
   * Proposed Cancellation of Capital
   * Proposed Capital Repayment


PANCARAN IKRAB: SC Grants Proposed Workout Scheme Extension
-----------------------------------------------------------
Alliance Merchant Bank Berhad, on behalf of the Board of
Directors of Pancaran Ikrab Bhd, announced that the Securities
Commission (SC) has approved the Company's application dated 17
April 2002 for a further extension of time until 31 December
2002 for the Company to implement the Proposed Restructuring
Scheme. This approval for the extension of time is subject to
the Company complying with the SC's Guidelines on Private Debt
Securities, for the issuance of the Redeemable Convertible
Unsecured Loan Stocks pursuant to the Proposed Restructuring
Scheme.


RENONG BERHAD: Unit's RM80,957,556 Asset Disposal Completed
-----------------------------------------------------------
On behalf of Renong Berhad, Commerce International Merchant
Bankers Berhad, in reference to the Disposal of approximately
227.761 acres of freehold land held under PTD 71047 and PTD
71065, Mukim of Pulai, Daerah Johor Bahru, Johor Darul Takzim by
Prolink Seaview Sdn Bhd, a wholly-owned subsidiary of Prolink
Development Sdn Bhd, which in turn is a 64%-owned subsidiary of
Renong Berhad, to Ho Hup Jaya Sdn Bhd, a wholly-owned subsidiary
of Ho Hup Construction Company Berhad, for a cash consideration
of RM80,957,556.35, announced that the Disposal has been
completed on 7 May 2002.


TALAM CORPORATION: Registrar Strikes Off Dormant Subsidiaries
-------------------------------------------------------------
Talam Corporation Berhad announced that Bukit Sentosa Management
Services Sdn Bhd and Perotech Industry Sdn Bhd, both dormant
subsidiaries of Talam have been struck off from the register by
the Registrar of Companies pursuant to powers conferred by
subsection 308(4) of the Companies Act, 1965 and accordingly
dissolved.


TRANS CAPITAL: Receiver Appointment Delays Report Submission
------------------------------------------------------------
The Board of Directors of Trans Capital Holding Berhad announced
that TCHB has received the approval of the Kuala Lumpur Stock
Exchange (KLSE) for the extension of time of one (1) month until
31 May 2002 for submission of the 2001 Annual Audited Accounts
of TCHB.

The reason TCHB was unable to release the 2001 Annual Audited
Accounts pursuant to Paragraph 9.23 (b) of the Listing
Requirements are due to the following, which delayed the
preparing and finalizing the accounts for TCHB Group:

   1) the appointment of the Receiver and Manager of Trans
Capital Sdn. Bhd., a subsidiary company of TCHB, all the
accounting books and related documents were handed over to the
Receiver

   2) TCSB is awaiting confirmation from the bankers and
solicitors on the balance due by TCSB to them respectively.


UCP RESOURCES: Provides Default in Payment Update
-------------------------------------------------
UCP Resources Berhad, in accordance with Practice Note No.
1/2001 of the Kuala Lumpur Stock Exchange Listing Requirements,
hereby provides an update on its default in payment:

   (i) UCP Geotechnics (M) Sdn Bhd, a subsidiary of UCP
Resources Bhd, as at 7 May 2002 and 9 May 2002, defaulted in
principal payments of RM600,000 and RM454,000 respectively for
Bankers Acceptance facilities granted from Affin Bank Bhd; and

   (ii) UCP Manufacturing (M) Sdn Bhd, a subsidiary of UCP
Resources Bhd, as at 10 May 2002, defaulted in principal
payments of RM530,000 for Bankers Acceptance facilities granted
from Affin Bank Bhd.

The UCP Group shall make periodic announcement on a monthly
basis to the Exchange of the current status of the default and
of the steps taken to address the default until such time when
it is remedied.


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


NATIONAL POWER: Govt Orders Review of Power Purchase Contracts
--------------------------------------------------------------
President Gloria Macapagal Arroyo has ordered a review of power
purchase contracts entered into by the National Power Corp to
determine ways of reducing power purchase costs, AFX Asia
reported.

Last week, Arroyo ordered the state-owned power utility to cease
collecting from power distributors an average surcharge of 0.85
pesos per kilowatthour under the power purchase adjustment (PPA)
mechanism.

The surcharge, which pays for unsold power guaranteed under
"take or pay" contracts Napocor has with independent power
producers (IPPs), is subsequently passed on to consumers.
Napocor buys half of its power requirements from IPPs.

National Power, saddled with $7 billion of debt, forecasts a
loss of 34 billion pesos this year, three times more than last
year.


NATIONAL POWER: IFC Offers Fund for Asset Buyers
------------------------------------------------
The International Finance Corp., the private investment arm of
the World Bank, is keen to provide equity or financing of up to
50 million dollars per project to investor groups pre-selected
by the government to undertake projects in the privatization of
state-run National Power Corp., Philippine Daily Inquirer
reports.

"We are one of the first foreign institutions that supported the
independent power producers in the 1990s because we saw the
catalytic effect of these projects on the country's economy. We
believe that the current power reform program is a sound reform
and we would like to support it by financing more projects," IFC
country manager Sergio Pimenta said.

IFC could take up to 25 percent equity per project or between 20
million and 50 million dollars per project, Pimenta said.

Energy Secretary Vincent Perez Jr. had previously announced the
government's plan to sell the transmission assets of Napocor in
June or July and its generation assets late this year or in
early 2003.

The government has established the Power Sector Assets and
Liabilities Corp. (PSALM) to facilitate the sale of Napocor's
assets.


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


ASIA PULP: Agrees on Terms for Rescheduling $13B Debt
-----------------------------------------------------
Asia Pulp & Paper Co. has agreed in "principle" with its
creditors on the terms for rescheduling its $13 billion debt,
Bloomberg reported.

APP, based in the World Trade Center in Singapore, agreed to
restrictions on taking on new loans and will pursue the option
of a debt buyback.

In February, creditors rejected APP's preliminary debt
restructuring proposal within hours of its presentation. They
have complained that APP concealed key financial information.

Indonesia's Widjaja family controls APP, which froze repayment
of principal and interest on its hefty debt in March 2001.

The restructuring plan includes measures such as the conversion
of debt into equity, and a proposal for the Widjaja family to
inject some of their assets into APP, such as the forestry
concessions that supply APP with timber and a much shorter
rescheduling period of five years, instead of 13 APP earlier
proposed.

Asia Pulp & Paper - http://www.asiapulppaper.com- has called a  
moratorium in March 2001 as operations tottered under the weight
of a liquidity crunch, falling pulp and paper prices and ratings
downgrades.

The New York Stock Exchange delisted APP last July. The
Company's Indonesian subsidiaries, Indah Kiat and Tjiwa Kimia,
were suspended from the Jakarta Stock Exchange for failing to
submit their latest financial statements.

Asia Pulp's financial adviser is Credit Suisse First Boston Inc.


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


BANGKOK RUBBER: Files Business Reorganization Petition
------------------------------------------------------
Sports and Fashion shoes manufacturer Bangkok Rubber Public
Company Limited (DEBTOR)'s Petition for Business Reorganization
was filed at the Central Bankruptcy Court:

   Black Case Number 1628/2544

   Red Case Number 1313/2544

Petitioner: BANGKOKRUBBER PUBLIC COMPANY LIMITED

Planner: B.R.C. PLANNER COMPANY LIMITED

Debts Owed to the Petitioning Creditor: Bt9,838,946,323.99

Date of Court Acceptance of the Petition: November 28, 2001

Date of Examining the Petition: December 24, 2001 at 9.00 A.M.

Court Order for Business Reorganization and Appointment of
Planner: December 24, 2001

Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Matichon Public Company Limited
and Siam Rath Company Limited: January 4, 2002

Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Government Gazette: January 22,
2002

Deadline for the Planner to submit the Reorganization Plan to
the Official Receiver: April 22, 2002

Contact: Ms. Niramon Tel, 6792525 ext. 143


EMC PUBLIC: Registered Paid-up Capital Stands at Bt590,278,160  
--------------------------------------------------------------
EMC Power Co., Ltd, the Plan Administrator of EMC Public Company
Limited, informed that the company has registered the paid up
capital from Bt537,512,610 to Bt590,278,160 on May 10, 2002.

The Plan Administrator informed that EMC will convert
the debt to equity by issuing the ordinary shares to Bank of
Asia Plc. in the amount of Bt52,765,550 divided into
5,276,555 shares, due to orders from the official receiver and
as provided in the rehabilitation plan that EMC has to convert
the debt to equity by issuing the ordinary shares.


FUEL PIPELINE: BAFS Signs Claims Agreement for Sale
---------------------------------------------------    
Bangkok Aviation Fuel (BAFS) held the Board of Directors Meeting
No. 3/2545 on 10 May 2002 and passed the following material
resolutions:

1. The Meeting acknowledged the conditions and the execution
of the Second Amendment to Fuel Pipeline Transportation Ltd.
(FPT)'s Debt Restructuring Agreement which was executed on 28
March 2002 with the approximate debt amount of Bt3,129 million,
whose material conditions include:

   * repayment of the principle to correspond with the cash flow
balance of FPT

   * the payment of interest at the rate of 1% with the
outstanding interest at the rate of MLR-1% to be accrued and to
be written off on an annual basis if the debtor is able to make
monthly repayment in accordance with the principle repayment
schedule for a continuous period of 3 years but the debt owing
to BAFS with the interest rate of 1% will not be accrued.

In addition, BAFS had signed the Agreement for Sale of
Claims with Group 2 Debtors of FPT; whereby BAFS is to purchase
and become the creditor in respect of the claim of Bt415.1
million, which results in BAFS becoming a creditor of FPT in the
portion of 16.054%.  The first payment of Bt207.55 million was
made on 29  March 2002 and the balance of Bt207.55 million will
be paid on a quarterly basis in the amount of Bt17.30 million
for a period of 12 quarters starting from June 2002 until March
2005.  Such payment for the purchase of the guarantee debt will
no longer affect BAFS's performance since the Company had set a
reserve for such damages in BAFS's financial statement in the
year 2001.      


STAR PETROLEUM: Debt Restructuring Completed
--------------------------------------------     
PTT Public Company Limited is pleased to notify that Star
Petroleum Refining Company Limited (SPRC), an affiliate of PTT
with 36% ownership, has already completed its process of
proposing the debt-restructuring plan for the lenders'
consensus.  

SPRC's competitive position will be strengthened due to its low
debt, low operating costs and high efficiency and reinforce its
alliance with the Rayong Refinery Company Ltd. as a leading
world-class refiner of petroleum products in Asia Pacific.


THAI ENGINE: Amends Article of Association
------------------------------------------
Churchill Pryce Planner Company Limited, Plan Administrator of
Thai Engine Manufacturing Public Company Limited, reports the
Central Bankruptcy Court order (Court order), approved on 20th
August 2001, to amend the Article of Association of TEM in
respect to the capital increase/allotment as part of the
Reorganization Plan (the Plan), approved on 20th December 2000:

1. Capital increase

The Plan was proposed to increase capital from Bt3.75 million to
Bt75 million by issuing 7.125 million new shares at par value of
Bt10 per share in total of Bt71.25 million.

2. Allotment of increased share capital

The Plan was proposed the allotment of the increased capital of
7.125 million shares at par value of Bt10 per share totaling
Bt71.25 million. The details of such allotment are that the
increased capital will be allocated among creditors of Thai
Engine Manufacturing Public Company Limited pro rata to their
remaining outstanding claims against TEM via a debt-for-equity
swap.  Therefore, creditors will thus become the majority
shareholders of TEM following restructuring at the shareholding
structure of the original shareholders of 5% and new
shareholders (creditors under the debt-for-equity swap) of 95%.

3. Schedule for shareholders meeting to approve the capital
increase/ allotment No schedule for shareholders meeting.  Since
the Company is under the business reorganization process,
the Plan Administrator had filed the petition to the Court to
approve the Article of Association amendment of TEM to reflect
the Plan implementation. The Court approved the amendment on
20th August 2001.

4. Approval of the capital increase/allotment by relevant
government agency and conditions thereto (if any) -

5. Objectives of the capital increase and plans for utilizing
proceeds received from the capital increase Step 5 of the Plan
was proposed that creditors who are entitle to the debt-for-
equity swap will be repaid in the form of the Company shares
instead of cash.  The creditors will receive cash subsequent to
any offers proposed from new investor.

6. Benefit which the Company will receive from the capital
increase/ allotment

For the Company under the business reorganization process, the
implementation of debt-for-equity swap, as specified in the
Plan,  is a way to limit cash for principle and interest
repayments.  Instead, the Company can operate the business by
using this fund for working capital and be able to stay in
business.  This will benefit both creditors and shareholders in
the long run.

7. Benefits which shareholders will receive from the capital
increase/ allotment

   7.1 Dividend Policy: Cannot determine currently

   7.2 Person who offers to purchase increased capital can start
getting dividend since the period of: Cannot determine currently

   7.3 Others

The creditors will receive money in case that there is any offer
proposed from new investor.

8. Other details necessary for shareholders to approve the
capital increase/ allotment - None

9. Schedule of implementation where the board of directors of
the Company passes a resolution approving the capital increase/
allotment

After the Court approved the capital reduction, capital increase
and debt-for-equity swap on 20th August 2001, Churchill Pryce
Planner Company Limited, as a Plan Administrator of TEM, started
requesting information from creditors in order to process their
information as new shareholders into the system of Thailand
Securities Depository Company Limited. The process started since
late 2001, however, outstanding information from some creditors
has delayed the process implementation.

Since beginning of 2002, the Company has conducted intensive
follows up, via telephone or fax, of necessary information from
remaining creditors, resulted in some progress. However, to
complete this step on schedule, the Plan Administrator prepared
a shareholding report based on information given in the existing
record.

The process for debt-for-equity swap and capital increase is
briefly set out as follows:

   * The Company opened a scripless account with Thailand
Securities Depositories Co., Ltd;

   * Propose to amend the Article of Association of Thai Engine
Manufacturing Public Company Limited with
the Ministry of Commerce;

   * List the shares on the Stock Exchange of Thailand;

   * Propose sale to new investor to repay creditors who swapped
his debt for equity.


THAI TELEPHONE: Posts April 2002 Warrant Exercise Results
---------------------------------------------------------      
Thai Telephone & Telecommunication Public Company Limited,
pursuant to the Company's Business Reorganization Plan dated
November 29, 2000 (including amendments dated December 6 and 15,
2000), which had been approved by the Central Bankruptcy Court
on December 27, 2000, has allocated, at no cost, 281,155,610
units of warrants, which give each holder the right to
subscribe for ordinary shares, to the entitled creditors and to
the Company's existing shareholders.

The warrants' term is 5 years, and 1 unit of warrants can be
exercised to purchase 1 ordinary share at Bt4.85 each from
October 1, 2001 to 17.00 hrs. of September 29, 2006. The details
of warrants' terms and conditions have been stated in the
Prospectus.

TT&T also reported that during the exercising period of April
2002, 15,000 units of warrants were exercised by 1 warrant-
holder. Therefore, total amount of the unexercised warrants is
281,133,580 units. The Company shall allocate 15,000 ordinary
shares for this exercise and subsequently apply to the Stock
Exchange of Thailand for listing these new shares as listed
securities.


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

Troubled Company Reporter -- Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick,
Maria Vyrna Nineza-Merlin, Maria Cristina Pernites-Lao, Editors.

Copyright 2002.  All rights reserved.  ISSN: 1520-9482.

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