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

                   A S I A   P A C I F I C

            Wednesday, May 15, 2002, Vol. 5, No. 95

                         Headlines


A U S T R A L I A

ARC ENERGY: TAP's Takeover Offer Lapsed
AUSDOC GROUP: Enters Exclusive Freightways Sale Negotiations
EARTH SANCTUARIES: Shareholders Must OK Blue Mts Sale Agreement   
VOICENET (AUST): Telemergencia to Sell Chile's Speech Products

* Supreme Court Winds Up Olive Grove Companies


C H I N A   &   H O N G  K O N G

ALLIED RAINBOW: Faces Winding Up Petition
CIL HOLDINGS: Further Delays Circular Dispatch
CONSTRUCTION HOLDINGS: Winding Up Petition Hearing Adjourned
HINET HOLDINGS: Posts Results of the Open Offer
KING PACIFIC: Winding Up Sought by Goodragon
NORTHEAST ELECTRICAL: Updates Auditors' Opinion on 2001 Report
NORTHEAST ELEC'L: May 27 Syndicated Loan Litigation Hearing Set


I N D O N E S I A

ASTRA INT'L: Missi Urges Directors, Commissioners Replacement
BANK INTERNASIONAL: Rights Issue, Reverse Stock Split Boost CAR
PERUSAAHAN LISTRIK: Incurs Unaudited 2001 Profit of Rp80B
SINAR MAS: Compelled to Increase Assets to IBRA  


J A P A N

DAIEI INC: Sale of Sun TV Stake to Kobe Shimbun Likely
DAIKYO INC.: Four Banks to Provide JPY470B Bailout Package
ISUZU MOTORS: Denies Reported Diesel Engine Ops Spin Off
MITSUBISHI CHEMICAL: Will Cut 2,000 Jobs in FY02
MITSUBISHI MATERIALS: Sets Up JV With Mitsubishi Corp.
MITSUBISHI MOTORS: Turns Profit After Three Years
NIPPON TELEGRAPH: Intends Shares Buy Back of Up to US$788M
SNOW BRAND: Zen-noh Taking Control of Milk Operations
SOFTBANK CORP.: Denies Report on Aozora Bank Share Sale
SOFTBANK CORP.: Loses JPY88.76B on Infrastructure Costs
SUMIKURA INDUSTRIAL: Machinery Manufacturer Goes Bust


K O R E A

DAEWOO MOTOR: Closes India Plant to Lower Inventory Level
DAEWOO MOTOR: Swings Back Into Black With $20M Profit
DAEWOO MOTOR: U.S. Office to File for Bankruptcy
HYUNDAI PETROCHEMICAL: SK Corp. Takeover Likely


M A L A Y S I A

ABRAR CORPORATION: Unit's Litigation Hearing Fixed on Oct 16
ASSOCIATED KAOLIN: Awaits SC's Nod on Proposals
CHIN FOH: Lucksoon Faces Winding Up Petition Over Unpaid Debt
CSM CORPORATION: Provides Defaulted Payment Status Update
ESPRIT GROUP: Solicitor to File Motion to Stay Winding Up Order
FORESWOOD GROUP: Provides Litigation Add'l Info
GEAHIN ENGINEERING: Answers KLSE's Litigation Query
MBF CAPITAL: Explains Auditors' 2001 Report Qualification
MEASUREX CORPORATION: Q401 Unaudited Results Deconsolidated
PILECON ENGINEERING: Subsidiary Faces Winding-Up Petition
SELOGA HOLDINGS: Seeks Regularization Plan Time Extension
YEO HIAP: Voluntarily Liquidates Dormant Units


P H I L I P P I N E S

NATIONAL POWER: Transco Privatization Delayed to 2002's End
PHILIPPINE AIRLINES: Slump Erodes Airline's Profitability
PHILIPPINE LONG: Sets Note Price


S I N G A P O R E

SEMBCORP INDUSTRIES: Cuts Stake in Losing China Park


T H A I L A N D

AM/PM (THAILAND): Files Business Reorganization Petition  
EMC PUBLIC: Discloses Shares Sale Results
SINO-THAI: BOD Meeting Approves Management Structure   
THAI TELEPHONE: Posts Q102 Operating Results

     -  -  -  -  -  -  -  -

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A U S T R A L I A
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ARC ENERGY: TAP's Takeover Offer Lapsed
---------------------------------------
Tap Oil Limited advised that its takeover offer dated 27 March
2002 for all of the fully paid shares in ARC Energy NL
(ARC) closed at 5.00pm on 13 May 2002.

At the close of its bid, Tap had relevant interest in 0.00697%
of the ARC fully paid shares.

Any inquiries regarding this announcement should be directed to
the Managing Director, Mr Paul Underwood.

ARC reported losses during the previous 12 months. It also has
paid no dividends during the last 12 months. According to
Wrights Investors' Service, the company's long term debt was
A$8.40 million and total liabilities were A$15.35 million. It's
long term debt to equity ratio is 0.40.


AUSDOC GROUP: Enters Exclusive Freightways Sale Negotiations
------------------------------------------------------------
AUSDOC Group Limited announced Tuesday that it has entered into
exclusive negotiations with a party interested in acquiring all
the ordinary shares in Freightways Express Limited
(Freightways), AUSDOC's New Zealand courier and express freight
business.

The party granted exclusivity has conducted due diligence in
relation to Freightways as part of the current sale process and
will have the opportunity to conduct confirmatory due diligence,
with a view to entering binding sale documentation by 29 May
2002. Details of AUSDOC's exclusivity and cost underwriting
arrangements with that party are set out in the Annexure.

Following discussions with Australian Stock Exchange, AUSDOC
considers that the approval of AUSDOC shareholders at a general
meeting will be required, should a sale of Freightways proceed.

AUSDOC's entry into exclusive negotiations for the sale of
Freightways allows the company to pursue a break-up strategy in
relation to Freightways, DX Express and GoMail. If this strategy
is implemented, AUSDOC will comprise AUSDOC Information
Management (AIM) and cash proceeds realized through the break-
up. Subsequently, the company would seek to facilitate the sale
of AIM through an offer to AUSDOC shareholders for their shares
in AUSDOC.

AUSDOC is considering its options and continuing discussions in
relation to its DX Express and GoMail businesses. AUSDOC is also
continuing discussions in relation to the sale of AIM.
Currently, AUSDOC is not in a position to provide any further
information, but anticipates making further announcements in due
course.

Commenting on the status of the sale process, AUSDOC's Chairman,
Michael Butler, said "We are pleased with the progress of the
sale process to date. The arrangements in relation to
Freightways, other than set out in this announcement, are non-
binding and confidential. As a result, we are unable to provide
any further information in relation to the identity of the party
involved or the terms of any possible transaction. However, we
will continue to keep shareholders informed of developments in
relation to the sale process."

ANNEXURE

Under the terms of the exclusivity arrangements relating to
Freightways, until 29 May 2002, AUSDOC is not permitted to:

   * solicit an alternative offer for the shares in or assets of
Freightways;
   * solicit an offer for the shares in AUSDOC; or
   * engage in negotiations in relation to the sale of  
Freightways with any other party who has conducted due diligence
in relation to Freightways in the previous two months.

However, AUSDOC is permitted to:

   * continue current negotiations with parties in relation to
possible offers for the shares in AUSDOC;
   * respond to unsolicited offers or proposals for the shares
in AUSDOC, where legally required to do so; or
   * respond to unsolicited offers or proposals for Freightways,
where legally required to do so.

If AUSDOC:
  
   * undertakes any of the permitted actions noted above; and
   * does not enter into binding sale documentation with the
relevant party by 29 May 2002; and
   * that party is prepared to enter into that documentation on
that date; or
   * executes binding sale documentation with the relevant
party; and
   * AUSDOC shareholders fail to approve the sale; or
   * sells any assets of Freightways valued above $1 million in
one transaction (or, in aggregate, $5 million) without the
consent of the relevant party; and
   * the relevant party does not enter into binding sale
documentation as a consequence of those asset sales,

AUSDOC is required to reimburse the relevant party's reasonable
actual costs of participating in the sale process, to a maximum
of $500,000.


BALLARAT GOLDFIELDS: Takeovers Panel Releases Decision
------------------------------------------------------
The Takeovers Panel has issued its decision in relation to the
application made by RFC Corporate Finance Ltd.

The Panel advises that it has made a declaration of unacceptable
circumstances in relation to a break fee that Ballarat
Goldfields NL (BGF) agreed to pay to Rexadis Pty Ltd. The Panel
has ordered that BGF not pay the break fee, and that Rexadis not
acquire the shares which are the subject of the break fee, nor
any other benefit in substitution for the break fee.

The Panel has also postponed the meetings at which shareholders
of BGF are to vote on the competing proposals from Rexadis, RFC
Corporate Finance Ltd and Republic Gold Ltd. The Panel postponed
the meetings for seven days to 4 June 2002.

Under the break fee, BGF agreed to issue to Rexadis shares in
BGF equal to 14.9% of the BGF shares on issue on the day the
Break Fee shares would be allotted, less the number of shares
which were issued to Rexadis as a placement on 2 April 2002.

The Panel made no adverse finding on the intentions or good
faith of the directors of BGF. However, the Panel considered
that the break fee was likely to have a coercive effect on the
decision of BGF shareholders when they consider the three
alternative proposals for the future of BGF. The Panel
considered it unacceptable that the shareholders of BGF might be
forced to allow Rexadis to acquire a substantial interest in BGF
as a cost of rejecting the Rexadis proposal to sell BGF's gold
assets to Rexadis.

The Panel considered BGF shareholders would now need additional
time to consider the three competing alternatives without the
pressure of the break fee.

BGF will review arrangements for the now postponed meeting and
advise any revised details (time, date and venue) shortly. BGF
is pleased that the Panel has not found the actions of the
directors to have been detrimental. The Board now looks forward
to shareholders making clear decisions on the future direction
for their company at the meetings.


EARTH SANCTUARIES: Shareholders Must OK Blue Mts Sale Agreement   
---------------------------------------------------------------
The Directors of Earth Sanctuaries Ltd announced Monday that it
has entered into an agreement to sell the Blue Mountains Earth
Sanctuary for $1.17 million to a company owned and controlled by
former Chairman, Dr Don Stammer, subject to shareholder
approval.

This sale represents the highest final offer received for the
property resulting from the expression of interest process which
was announced and commenced on 14 January. The sale also grants
Earth Sanctuaries a conditional option to repurchase the Blue
Mountains property at the sale price of $1.17 million plus
holding costs and taxes. The option has a term of five years.

The Blue Mountains property has not been developed by Earth
Sanctuaries nor has the Company populated it with rare and
endangered Australian wildlife.

Shareholders will be asked to approve the sale of this property
to the former Chairman, Dr Stammer, at a shareholders' meeting
which will be called in June. At this meeting shareholders will
also be asked to approve the recently announced sale of the
Scotia, Yookamurra, Buckaringa and Dakalanta Earth Sanctuaries
to the Australian Wildlife Conservancy for $5.187 million.

This sale brings the recent program of Earth Sanctuaries
property sales to a conclusion.

Subject to shareholder approval of the sales to Dr Stammer and
the Australian Wildlife Conservancy, Earth Sanctuaries will
become debt free, have a positive cash balance and have
rationalized its business to the Warrawong Earth Sanctuary near
Adelaide, the Little River Earth Sanctuary near Melbourne and
management of the Hanson Bay Sanctuary on Kangaroo Island.  
Earth Sanctuaries will also have the benefit of the repurchase,
option granted by Dr Stammer which the company maybe able to  
exercise at an appropriate time in the future.  A key outcome
from the restructuring program is that the company's business
assets will have been rationalized to those that have the
best potential for achieving a better future balance of eco
tourism revenues and conservation costs.

The Board will shortly announce the date of its shareholders
meeting to approve the sales. At that time the company will
announce its future strategy and planned use of the proceeds
from its restructuring program.


VOICENET (AUST): Telemergencia to Sell Chile's Speech Products
--------------------------------------------------------------
Voicenet (Aust) Limited is pleased to announce that it has been
informed by Dr Chris Fay, the President of its wholly owned
subsidiary Voicenet Chile S A, that Telemergencia S A has signed
an Agreement to Develop Technology with Voicenet Chile SA
whereby Telemergencia will sell voice speech applications
developed by Voicenet Chile.

Telemergencia is a wholly owned subsidiary of Telefonica CTC,
the largest telephone company in Chile. Telefonica CTC is a
subsidiary of Telefonica, the leading telecommunications
operator in the Spanish and Portuguese-speaking world and the
second largest European operator by market capitalization.

Telemergencia sells security and home automation equipment and
services to households and small businesses. It presently serves
20,000 customers and this base is growing rapidly. A substantial
discount in home insurance costs provides a strong incentive to
install alarm systems.

The application developed by Voicenet for Telemergencia allows
alarms and switches in the home or business premises to be
remotely managed by voice over both fixed line and mobile
phones, enabling the activation of alarms or any electrically
operated device, by spoken commands.

Telemergencia will incorporate this application in its security
equipment and on sell it to the public. Initially it will use a
Voicenet Multi Purpose Speech Platform operated by Voicenet in
its premises in Santiago. Telemergencia will pay an agreed
amount per customer per month. The pricing is still subject to
final negotiation. Revenue to Voicenet will depend on sales.

Other features allow equipment in business premises or
residences to be accessed from the Web via a Voicenet Speech
Platform. If required the user is able to set timers for
switches or any electrical appliances. Equipment can be turned
on and off automatically by voice speech application or a Web
interface.

Equipment using speech activation, developed by Voicenet Chile,
has been under trial for some months and the decision by
Telemergencia to proceed is expected to lead to a revenue stream
in the next two months.

The initial implementation for Voicenet's system will use
Powermax equipment manufactured by the Israeli company Visonic
Inc. However the system that has been developed is compatible
with equipment manufactured by other companies,

Neither Telemergencia nor Voicenet are aware of any similar
Spanish Speech application in the world. In addition, the system
can be readily adapted for other languages.

Implementation of the contract with Telemergencia increases the
opportunities for Voicenet to develop applications for other
Original Equipment Manufacturers.

The sale is a major breakthrough for Voicenet. As well as
providing revenue for Chile, it is expected to create worldwide
opportunities in diverse markets for additional sales.


* Supreme Court Winds Up Olive Grove Companies
----------------------------------------------
In the conclusion of action taken by the Australian Securities
and Investments Commission (ASIC) against Mr Leslie Reginald
Nelson, the Supreme Court of New South Wales on Monday made
orders winding up a number of companies formerly managed by Mr
Nelson.

Mr Nelson, a Hurstville accountant, was previously the trustee
of a number of unit trusts into which about 120 investors,
mainly elderly retirees, placed several million dollars over the
past decade.

The companies were involved with the unit trusts and an olive
grove project planned by Mr Nelson, and will be wound up:

   * Barroin Pty Ltd
   * Provest (NSW) Pty Ltd
   * Australasian Quality Testing Pty Ltd
   * Transline Pty Ltd
   * Rural Orchard Management Services Pty Ltd
   * Mudgee Property Management Pty Ltd

Mr Andrew Love, of Ferrier Hodgson, was appointed as liquidator
of the companies.

On 25 March 2002 the court made declarations that Mr Nelson
mislead and deceived the investors into believing their money
would be invested in real property mortgages.

In fact the money was used by Mr Nelson to prop up a failing
agricultural business he owned and to purchase land in Mudgee to
establish and maintain an olive grove project.

The court banned Mr Nelson from managing corporations for life
and ordered him to pay $3 million in compensation to a number of
unit trusts.


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C H I N A   &   H O N G  K O N G
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ALLIED RAINBOW: Faces Winding Up Petition
----------------------------------------
The petition to wind up Allied Rainbow Garment Limited is
scheduled to be heard before the High Court of Hong Kong on June
19, 2002 at 9:30 am. The petition was filed with the court on
February 27, 2002 by Ng Wai Shun of Block B, 3rd Floor, Tai Wah
Building, No. 9-31 Tai Pei Square, Tsuen Wan, New Territories,
Hong Kong.  


CIL HOLDINGS: Further Delays Circular Dispatch
----------------------------------------------
CIL Holdings Limited, pursuant to Rule 8.2 of the Code and Rule
14.29(2) of the Listing Rules, is required to issue a circular
to the Shareholders in relation to, inter alia, the
Restructuring Proposal within 21 days after the date of the
Joint Announcement. As set out in the joint announcement of the
Company and the Subscriber dated 18th April 2002, it was the
intention of the Company and the Subscriber to issue a composite
document (Composite Document) containing information relating to
the Restructuring Proposal, the Discloseable Transaction and the
Connected Transaction to the Shareholders by 10th May 2002.

However, the Company and the Subscriber are currently still in
the course of finalizing various information to be disclosed in
the Composite Document and preparing for the relevant procedures
in relation to the sanctioning of the Scheme. In particular, the
Company is currently in the process of consulting its legal
advisers in respect of various arrangements relating to the
Scheme. In addition, in order to confirm the arrangements and
timetable relating to the Scheme, the Company is required to
prepare the Composite Document in a form advanced enough for
submission to the courts of Hong Kong and Bermuda for their
review and the review processes of the courts will normally take
approximately seven working days (assuming no major comment is
received from the courts) before the details relating to the
implementation of the Scheme can be confirmed by the courts.

The aforesaid matters require considerable amount of additional
time to complete, which is more than originally anticipated by
the Directors and the Subscriber. Accordingly, applications have
been made by the Company to SFC and the Stock Exchange to
further extend the date of despatch of the aforesaid composite
document from 10th May 2002 to 31st May 2002.

The Subscription Agreement is conditional upon certain
conditions including the approval of the Subscription Agreement
by the Shareholders at the Special General Meeting and the
Company entering into the Scheme with the Scheme Creditors and
the Scheme having been sanctioned by the courts of Hong Kong and
Bermuda. At present, it is uncertain as to when such conditions
can be fulfilled. If such conditions are not fulfilled or
otherwise waived by 5:00 p.m. on 2nd July 2002, then the
Subscription Agreement shall lapse, unless the parties to the
Subscription Agreement agree to extend the deadline of the
completion of the Subscription Agreement.

The release of this announcement does not necessarily indicate
that the Restructuring Proposal, the Discloseable Transaction
and the Connected Transaction will be successfully implemented
and completed as the conditions precedent to the Restructuring
Proposal, the Discloseable Transaction and the Connected
Transaction may or may not be fulfilled or otherwise waived.
Investors should exercise caution when dealing in the Shares.


CONSTRUCTION HOLDINGS: Winding Up Petition Hearing Adjourned
-----------------------------------------------------------
China Construction Holdings Ltd announced that on 13 May 2002,
the High Court of the Hong Kong Special Administrative Region
has adjourned the petition hearing for the winding up of CIH
to 23 September 2002 and that CIH should file affirmations
informing the Court of the implementation of the restructuring
proposal with the closing date expected to be 18 September 2002.

At a meeting of noteholders held on 10 May 2002, the new
arrangements relating to the implementation of the restructuring
proposal put forward by the Company were approved.

A further announcement on the progress will be released in due
course.


HINET HOLDINGS: Posts Results of the Open Offer
-----------------------------------------------
The Directors of HiNet Holdings Limited announced that 114 valid
acceptances of the assured allotment of Offer Shares and 90
valid applications for excess Offer Shares have been received
for a total of 4,839,519,337 Offer Shares, comprising (i)
acceptance of assured allotment of 4,273,163,246 Offer Shares
and (ii) application for 566,356,091 excess Offer Shares made
under the Open Offer. Based on 12,438,299,075 Shares in issue on
23rd April, 2002, being the record date for the purpose of
determining entitlements under the Open Offer, an aggregate of
6,219,149,537 Offer Shares will be issued under the Open Offer.
Accordingly, approximately 77.82% of the total number of
6,219,149,537 Offer Shares was subscribed.

As regards the 90 valid applications for 566,356,091 excess
Offer Shares, the Directors have resolved to allot, from among
the unaccepted assured allotment Offer Shares, to each of the
applicants, such number of Offer Shares as it has made valid
application for.

UNDER-SUBSCRIPTION OF THE OFFER SHARES

Based on the above subscription results, the Open Offer was
under-subscribed and there were 1,379,630,200 Untaken Shares.
Mega Market, as an Underwriter, has taken up 800,030,200 Untaken
Shares while the other Underwriters have procured the
subscription by investors who are independent of and not
connected with any of the directors, chief executive or
substantial shareholders of the Company or its subsidiaries or
any of their respective associates (as ascribed in the Listing
Rules) for 579,600,000 Untaken Shares. The legal adviser
confirmed to the Company that the allocation of the Untaken
Shares among the Underwriters (including Mega Market) is not in
breach of the Underwriting Agreement. The 1,379,630,200 Untaken
Shares represent approximately 22.18% of the Offer Shares and
approximately 7.39% of the Company's enlarged issued share
capital immediately following the completion of the Open Offer.

Of the 6,219,149,537 Offer Shares to be issued under the Open
Offer, Mega Market, Mr. Chan and their respective associates
(the "Substantial Shareholder") have taken up an aggregate of
2,269,470,200 Offer Shares (including the assured allotment of
Offer Shares accepted by the Substantial Shareholder and the
portion of the Untaken Shares taken up by Mega Market, as an
Underwriter, in accordance with the terms of the Underwriting
Agreement), representing approximately 36.49% of the total
number of Offer Shares. As a result, the aggregate equity
interests of the Substantial Shareholder in the Company will
increase from approximately 26.00% as at the date of this
announcement to approximately 29.50% of the total issued share
capital of the Company as enlarged by the Open Offer.

So far as the Directors and Chief Executive of the Company are
aware, save and except for the Substantial Shareholder, there
was no other person who directly or indirectly held, or was
beneficially interested in, Shares representing 10% of more in
the enlarged issued share capital of the Company immediately
following the completion of the Open Offer and the subscription
of the 1,379,630,200 Untaken Shares by the Underwriters and
other investors procured by the Underwriters in accordance with
the terms of the Underwriting Agreement.

GENERAL

All conditions of the Open Offer as set out in the Prospectus
have been fulfilled. The Open Offer became unconditional at 4:00
p.m. on Thursday, 9th May, 2002. Certificates for the Offer
Shares are expected to be despatched by ordinary post to those
entitled thereto at their own risk on or before Tuesday, 14th
May, 2002. Dealings in the Offer Shares on the Stock Exchange
are expected to commence on Thursday, 16th May, 2002.

Further announcement of the appropriate adjustments to the
conversion prices of the Convertible Bonds, the subscription
price of the Warrants and the exercise price of and the number
of Shares to be subscribed under the Share Options will be made
as soon as practicable.


KING PACIFIC: Winding Up Sought by Goodragon
--------------------------------------------
Goodragon Limited is seeking the winding up of King Pacific
International Holdings Limited. The petition was filed on
February 7, 2002, and will be heard before the High Court of
Hong Kong on May 22, 2002.

Goodragon holds its registered office at Sea Meadow House,
Blackburne Highway, Road Town, Tortola, British Virgin Islands.


NORTHEAST ELECTRICAL: Updates Auditors' Opinion on 2001 Report
--------------------------------------------------------------
Subsequent to the announcement of Northeast Electrical
Transmission & Transformation Machinery Manufacturing Company
Limited regarding the suspension of listing of its A shares on
23rd April, 2002, the Company announces the details of preparing
for resumption of listing of the Company on Shenzhen Stock
Exchange and the improvements made on the matters mentioned in
the auditors' opinion contained in the 2001 Annual Report as
follows:

MEASURES FOR RESUMPTION OF LISTING ON SHENZHEN STOCK EXCHANGE

1. Disposal of non-profitable asset

   The Company had disposed of its equity interest in Shenyang
Transformers Ltd. to Northeast Construction & Installation
Corporation for a consideration of RMB150,000,000 (see the
announcement relating to the disposal of such asset dated 26th
April, 2002 for details). Completion of the disposal is expected
to take place before 30th June, 2002. Upon completion of the
disposal, such source of loss will be segregated from the
Company.

2. Operations

   As stated in the first quarterly report of the Company for
2002, the Company has effectively halted the trend of incurring
significant loss and showed signs of growth in production,
enhancement in efficiency and made a good turnaround in its
operations. In the first quarter, the Company recorded a loss of
RMB9,780,000, representing a decrease of RMB28,030,000 as
compared with a loss of RMB37,810,000 incurred for the same
period of last year. Sales (operating) income of RMB276,870,000
was recorded, representing an achievement of 19.6% of the target
volume for the year, an increase of RMB27,240,000 as compared
with the same period of last year, and a growth rate of 11%.
From the perspective of operation characteristics and production
cycle of the industry, the second quarter is an active period
for production and sales activities, it is expected that the
operating results of the Company will be improved when compared
with the first quarter. These pave the way for making a
turnaround  from loss making to registering a profit in the
interim period of 2002 and the resumption of listing of the
Company.

IMPROVEMENTS MADE ON THE MATTERS MENTIONED IN THE AUDITORS'
OPINION

1. With regard to syndicated loan, the litigation parties are in
discussion on the provisions of the repayment agreement, and the
judge approved to adjourn the winding-up hearing for two weeks
until 13th May, 2002 in the course of court hearing in the High
Court of Hong Kong on 29th April, 2002.

2. With regard to the accounts receivable of RMB136,463,995 from
the related party, the Company has frozen the equity interest of
the Chinese party in Guhe Cable, a Sino-Japanese joint venture,
of approximately RMB6,500,000 held by the related party. As a
result of the mediation by the court, such equity interest has
been used to set off part of the debt, and the related work is
under way.

3. The Company has been actively proceeding with the settlement
of other matters in the ways as set down by the Board of
Directors in respect of the related matters mentioned in the
auditors' opinion contained in the 2001 Annual Report (see the
Annual Report published on 18th April, 2002 for details), but no
progress has been made for the time being. The Board of
Directors will take positive measures and proceed with its best
endeavour in an attempt to settle the related matters involved
in the auditors' opinion as soon as possible.


NORTHEAST ELEC'L: May 27 Syndicated Loan Litigation Hearing Set
---------------------------------------------------------------
Northeast Electrical Transmission & Transformation Machinery
Manufacturing Company Limited announced that the solicitors act
for the overseas syndicate indicated in the hearing in the High
Court of Hong Kong on 13th May, 2002 that the syndicate agreed
with the repayment plan proposed by the Company although an
agreement has not been signed yet, and accordingly submitted an
application of adjournment of the hearing for two weeks. It was
confirmed over the phone to the Company by the syndicate that
the judge had approved to adjourn the winding-up hearing for
another two weeks until 27th May, 2002.

Trading in the H shares of the Company will remain suspended
pending further announcement as to whether the Company is
suitable for listing under the Rules Governing the Listing of
Securities on the Stock Exchange of Hong Kong Limited.


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I N D O N E S I A
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ASTRA INT'L: Missi Urges Directors, Commissioners Replacement
-------------------------------------------------------------
The Indonesian Bonds Investor Society Missi has sent a petition
to the Board of Directors and Commissioners of PT Astra
International Tbk to replace directors and commissioners who
were responsible for the US$4 million debt corporate guarantee
to Indover Bank, Bisnis Indonesia reported Tuesday.

MISI's petition, which was also sent to the Chairman of Stock
Market Supervising Agency (Bapepam), was signed by General
Chairman N.D. Murdani and General Secretary Djoko Santoso
Soenoe.

Missi supports Bapepam efforts to take an attentive and
proactive stance in tracking down the scandal thoroughly.
Bapepam could ask for the replacement of board of directors and
commissioners involved in that scandal via special general
meeting of shareholders (RULBPS) or grant special rights to
independent investors to name the successor of those scandal-hit
commissioners and directors.

According to Missi, the peace aggreement made Astra suffering
financially and let the wrongdoers freed of law sanction. "This
is undefendable by any reason. Bapepam has to impose a proper
sanction to the wrongdoer and not to Astra instititutionally."


BANK INTERNASIONAL: Rights Issue, Reverse Stock Split Boost CAR
---------------------------------------------------------------
Indonesian Bank Restructuring Agency Head Syafruddin Temenggung
said that PT Bank International Indonesia's rights issue may
raise Rp4.33 trillion, up from the original estimate of Rp3.975
trillion, and will have to be carried out after a reverse stock
split, AFX reports.

"The rights issue will be done with a reverse stock split,"
Temenggung said, adding that stock split will convert every 10
shares held into one, boosting BII's share price to Rp200.

Temenggung said after the reverse stock split and rights issue
are complete, BII's capital adequacy ratio will increase to 17
percent. As of Dec 2001, BII's CAR was negative 47.41 percent.

IBRA must first obtain parliamentary approval for these
proposals at a hearing later this month, with the rights issue
scheduled for next month.


PERUSAAHAN LISTRIK: Incurs Unaudited 2001 Profit of Rp80B
---------------------------------------------------------
Perusaahan Listrik Negara booked an unaudited net profit of Rp80
billion in 2001 compared to losses of Rp24 trillion in 2000
mainly due to the payment of accumulated government subsidy
funds since 1998, totaling Rp6.7 trillion, Jakarta Post reported
Tuesday, citing PLN president Eddie Widiono.

"That doesn't reflect our true performance. We are still
suffering from an operating loss of Rp3.3 trillion last year,"
he said, adding that PLN would still bear losses this year as
the company planned to revaluate part of its assets.

According to PLN Finance Director Parno Isworo, the Company's
assets stood at Rp65 trillion, but will be at least double after
revaluation.  The asset revaluation is part of the company's
debt restructuring strategy.


SINAR MAS: Compelled to Increase Assets to IBRA  
-----------------------------------------------
Sinar Mas Group is obliged to increase its assets to the
Indonesian Bank Restructuring Agency (IBRA) following the
assessment of Henry Bucher saying that SMG guarantee submitted
is only 80 percent to 130 percent from its overall obligations,
Bisnis Indonesia reports quoting Deputy Chairman of AMI IBRA
Taufik Mappaenre Maroef.

"Logically it must be so. The value of SMG assets by
conservative assessment is only 80% of its total obligation, as
by progressive means their assets value is 130%," Taufik said,
adding that the assessment will soon be sent to SMG side
together with the option given to IBRA.

"They are not in bargaining position because the appointment of
Henry Bucher has been agreed by both sides. Next week the result
would be submitted to SMG."

When asked about the possibility of SMG rejection of the
assessment of Henry Bucher, Taufik said it was proper. But,
according to him, "it was logical that if the submitted assets
were shrinking IBRA would asked for assets increase to reach
145% of the previous agreed value."

SMG has debts at IBRA worth of 1.3 billion which were ex-credit
of the Company to PT Bank Internasional Indonesia Tbk last year.


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


DAIEI INC: Sale of Sun TV Stake to Kobe Shimbun Likely
------------------------------------------------------
Supermarket operator Daiei Inc. plans to sell more than half of
its 17 percent stake, or 334,000 shares, in Kobe-based Sun
Television Co. to the company that publishes The Kobe Shimbun as
early as year-end, The Nihon Keizai Shimbun reported in its
Tuesday morning edition.

The planned stake sale for an undetermined amount will be part
of the retailer's ongoing restructuring plan to cut its ties
with operations that have too little relationship with its main
business.

Kobe-based Daiei is seen unloading shares worth around 10
percent of the total.

Meanwhile, 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.

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. 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, 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.


DAIKYO INC.: Four Banks to Provide JPY470B Bailout Package
----------------------------------------------------------
UFJ Bank, Mizuho Corporate Bank, Asahi Bank and UFJ Trust Bank
have agreed to provide a total of 470 billion yen in financial
assistance to Daikyo Inc, Tokyo's ailing condominium developer.

According to a report from the Nihon Keizai Shimbun, more than
400 billion yen will be provided in the form of debt waivers,
with the remainder consisting of debt-for-equity swaps.

Under the agreement, UFJ Bank will shoulder about 300 billion
yen of the more than 400 billion yen in debt waivers, while
Mizuho Corporate Bank and the two other banks will grant a total
of about 100 billion yen.

Through the financial aid, Daikyo will try to reduce its more
than 1 trillion yen in group interest-bearing debt to about
half, as well as speed up its rebuilding effort.

Together with the financial aid package, Daikyo will apply for a
rehabilitation designation under a law intended to facilitate
corporate restructuring and industry revival. If approved, the
condo developer will be able to take advantage of preferential
measures, such as a lower tax burden for the debt-for-equity
swap.

Daikyo plans to reduce its parent capitalization of about 70
billion yen by half in order to deal with nonperforming assets.
In addition, it plans to spin off ailing operations such as
leased buildings, golf courses and hotels, to focus on its
mainline condo development business.

The Tokyo Stock Exchange (TSE) halted trading in Daikyo shares
in the morning of March 11 due to media reports that the firm
asked its main lenders for a debt waiver of about Y430 billion
and a debt-for-equity swap of about Y40 billion to help the
Company.

Shares in Daikyo were up 14 percent at 91 yen on the report of
the bank-led rescue package.

As of March 2001, the Company has total current assets of
US$4.69 billion against total current liabilities of US$10
billion. The Company owes main lender UFJ Bank Ltd Y500 billion,
while the three other unnamed lenders hold lesser amounts of
debt at more than Y100 billion each.


ISUZU MOTORS: Denies Reported Diesel Engine Ops Spin Off
--------------------------------------------------------
Ailing truck maker Isuzu Motors Ltd. has denied reports that it
plans to spin off its diesel engine production or to form a new
alliance, the Tuesday edition of Dow Jones Newswires said.

The statement came after Asahi Shimbun said Monday that Isuzu,
in which General Motors Corp. (GM) holds a 49 percent stake, is
considering spinning off its diesel engine production unit to
form a joint-venture company with the U.S. carmaker giant. Isuzu
will also look for a partner on truck production, the newspaper
said.

"There is no truth to the report that we are considering
spinning off operations. We are proceeding with the V-Plan
(restructuring program) as announced earlier," an Isuzu
spokesman said.

As of March 2001, Tokyo's Isuzu Motors reported total current
assets of US$6.4 billion against total current liabilities of
US$9.3 billion.

On the Tokyo Stock Exchange at midday Tuesday, Isuzu shares were
down 1.0 percent at 97 yen.


MITSUBISHI CHEMICAL: Will Cut 2,000 Jobs in FY02
------------------------------------------------
Tokyo's Mitsubishi Chemical Corp. will lay off more than 2,000
of its 14,000 employees this fiscal year by sending some
permanently to its group firms and soliciting volunteers for
early retirement, Dow Jones Newswires reported, citing the
Tuesday edition of Nihon Keizai Shimbun.

The measure is designed to help the chemical company restore
profitability as early as this fiscal year after its posted 89
billion yen in parent-only net loss and was forced to skip a
dividend payment for fiscal 2001.

The firm has booked extraordinary losses of about Y18 billion
for fiscal 2001, including expenses for paying special early
retirement allowances to 1,100 volunteers. It is also expected
to take extraordinary losses for the same purpose for fiscal
2002.

Mitsubishi Chemical has launched negotiations with its labor
union, seeking to work out conditions for early retirement by
this fall.


MITSUBISHI MATERIALS: Sets Up JV With Mitsubishi Corp.
------------------------------------------------------
Mitsubishi Materials Corporation, Japan's leading producer of
various inorganic materials, cement, and certain fabricated
metal products, has set up a joint venture with major trading
house Mitsubishi Corp. to offer construction-site information
and electronics solution services, Kyodo News reported.

In April, the Tokyo-based company said it would continue its
current tie-up with Ube Industries Ltd in the field of sales,
distribution, and research and development of cement products.

Mitsubishi Materials has been implementing a medium-term
business plan, originally laid out in January 2001, to improve
its overall profitability by reducing its cost base and
restructuring its business portfolio.

As of March 2001, the Company has total current assets of US$4.1
billion against total current assets of US$6.5 billion.


MITSUBISHI MOTORS: Turns Profit After Three Years
-------------------------------------------------
Mitsubishi Motors Corp (MMC), Japan's fourth-largest car maker,
has returned to profitability for the first time in three years
in the 12 months to March 31 following a drastic restructuring
in its material and personnel costs, Handelsblatt reported.

Tokyo-based MMC, in which German-U.S. auto giant DaimlerChrysler
AG holds a 37.3 percent stake, posted a net profit of 1.13
billion yen in fiscal 2001, a turnaround from a loss of 27.8
billion yen the previous year. The high losses had been caused
mostly by the group's ailing car business.

"So far we have met all the targets of our three-year plan, and
in some cases we have exceeded them. We will also exceed our
targets for 2002 and 2003," chief operating officer Rolf Eckrodt
said.

Eckrodt, a former DaimlerChrysler manager, will take over at the
helm of MMC next month. He plans to transform MMC into a
profitable and growing company within three years and put it in
a position to reduce its debt mountain that currently totals 1.2
trillion yen.

Mitsubishi Motors, at the end of 2001, had negative working
capital, as current liabilities were Y1.95 trillion while total
current assets were only Y1.23 trillion.


NIPPON TELEGRAPH: Intends Shares Buy Back of Up to US$788M
----------------------------------------------------------
Telecommunications giant Nippon Telegraph and Telephone Corp.
(NTT) plans to buy back this year up to 100 billion yen (US$788
million) worth of its shares, the Nihon Keizai Shimbun said.

By absorbing NTT shares in the market, NTT hopes to correct a
supply-demand imbalance created by repeated sales of its shares
by the government, the report said.

Tokyo's NTT has forecast its net loss for the year ended explode
to 865 billion yen after a two-trillion-yen write-down of
assets. In September 2001, the Company posted current assets of
US$28.25 billion against current liabilities of US$31.97
billion.


SNOW BRAND: Zen-noh Taking Control of Milk Operations
------------------------------------------------------
The National Federation of Agricultural Cooperative Associations
(Zen-noh) is set to take a stake in Snow Brand Milk Products Co.
that will give it 30 to 40 percent of the voting rights, the
Nihon Keizai Shimbun reports.

Zen-noh, which will become the largest shareholder, is expected
to underwrite a total of 5 billion yen in shares.

Snow Brand Milk's rehabilitation plan calls for an initial
reduction in its capitalization from 27.8 billion yen to 500
million yen, followed by a capital increase of about 10 billion
yen.

In a bid to offset restructuring-related losses, Shinjuku-ku,
Tokyo's struggling dairy products maker has in early May asked
Norinchukin Bank, UFJ Holdings Inc.'s UFJ Bank, and Mizuho
Holdings Inc.'s Mizuho Corporate Bank for a total of 50 billion
yen ($393.9 million) in financial assistance consisting of 30
billion yen in debt waivers and 20 billion yen in debt-for-
equity swaps, of which 15 billion yen will not have voting
rights.

The newly issued stock that will grant voting rights is expected
to total about 15 billion yen, including 10 billion yen of stock
that will be privately placed. Zen-noh's 5 billion yen in stock
is likely to give it a stake exceeding 30 percent. Depending on
the extent of capital provided by others besides Zen-noh, the
actual stake figures will fluctuate.

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.: Denies Report on Aozora Bank Share Sale
-------------------------------------------------------
Internet investor Softbank Corp. has denied a media report that
it plans to sell shares in Aozora Bank and will likely choose a
buyer in June, Kyodo News reported.

The Nihon Keizai Shimbun said Monday that a Japanese investment
fund is seeking to buy Softbank Corp.'s 48.87 percent stake in
Aozora Bank, the former Nippon Credit Bank.

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.


SOFTBANK CORP.: Loses JPY88.76B on Infrastructure Costs
-------------------------------------------------------
Internet business investor Softbank Corp. dipped into the red in
the year that ended March 31 with a consolidated net loss of
88.76 billion yen compared with a profit of 36.63 billion yen
the previous year, Japan Times reported.

Softbank blamed the loss on extraordinary losses totaling 177.84
billion yen, which included 118.46 billion yen in valuation
losses on shareholdings.

It also booked a 19.98 billion yen extraordinary loss, mainly
due to a devaluation of intangible fixed assets at Key3Media
Group Inc. that resulted from changes in U.S. accounting
standards.

Softbank did not disclose its earnings projections for this
year, citing possible changes in stock and currency markets that
may greatly affect it as a holding company.

Softbank President Masayoshi Son said the company had 365.6
billion yen in long-term debts at the end of March, down from
487.5 billion yen at the end of last September.

The Tokyo-based Company has been looking to reduce its debt and
generate cash to finance its asymmetric digital subscriber line
(ADSL) business "Yahoo BB", which it launched with its
subsidiary Yahoo Japan in September.


SUMIKURA INDUSTRIAL: Machinery Manufacturer Goes Bust
-----------------------------------------------------
Major metalworking machinery manufacturer Sumikura Industrial Co
has filed for bankruptcy on Friday with the Tokyo District
Court, Japan Today reported.

Sumikura Industrial in Minato-ku, Tokyo produces a variety of
products such as recycling equipment, heating furnaces, saws,
and heavy construction equipment.

The company, with total liabilities of 1.8 billion yen, said it
lost public faith following the arrests in February of several
company executives, including former President Hajime Oshima, on
suspicion of paying off "sokaiya" corporate racketeers.


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


DAEWOO MOTOR: Closes India Plant to Lower Inventory Level
---------------------------------------------------------
Daewoo Motor India, Daewoo Motor's operations at its Surajpur
plant near Delhi, has temporarily shut down operations to lower
inventory level and also buy time from creditors to put the unit
back on track, the Times of India reported.

"We have enough inventory with us. Looking at the current low
sales, we are first trying to clear off the present inventory
before producing new cars," Daewoo Motor India deputy MD DW Kim
said.

Kim further added that the firm would review its production
strategy once the plant becomes operational again.

The Indian venture was left out of General Motors' agreement in
April with Daewoo Motor Company of South Korea to acquire parts
of its troubled empire. According to the deal, GM will acquire
Daewoo's overseas sales subsidiaries in Austria, France,
Germany, Italy, Puerto Rico, Spain, Switzerland, and in the
Netherlands. In addition, the German-U.S. auto giant has also
acquired the manufacturing plants located in Changwon and
Kunsan, South Korea, and the automobile operations in Hanoi,
Vietnam.

Daewoo India management has since recommenced talks with its
creditor banks and financial institutions seeking deferment of
its loan repayment.

In the first round, it has initiated talks with its lead
creditors Exim bank and IBDI, who have moved to recall their Rs
400-crore loan.

Another lender, ICICI, has moved the Mumbai High Court seeking
recovery of the money it lent to Daewoo Motor India.

Kim said they are exploring other options with their creditors
to find the best possible way to keep the firm afloat. The
Indian venture is also in talks with the Korean parent and the
government to help them see through the problem.


DAEWOO MOTOR: Swings Back Into Black With $20M Profit
-----------------------------------------------------
Daewoo Motor Co., the bankrupt South Korean automaker that
General Motors Corp agreed to revive, reported an operating
profit of 26 billion won ($20 million) in the January-April
period, compared with an operating loss of 39.7 billion won a
year earlier, Auto.com reported.

Analysts said a return to an operating profit was inevitable due
to layoffs and other cost cutting measures the automaker
implemented.

Daewoo Motor's total liabilities stood at 24 trillion won versus
7.9 trillion won in assets as of the end of 2001.

General Motors and its partners earlier agreed to buy some
Daewoo Motor assets for $1.17 billion in cash and assumed debt.


DAEWOO MOTOR: U.S. Office to File for Bankruptcy
------------------------------------------------
The U.S. branch office of Daewoo Motors Co., which was excluded
from the sales deal sealed with General Motors, plans to file
bankruptcy this week.

According to a report by Bloomberg News, Daewoo Motors' U.S.
subsidiary will file for bankruptcy while asking for continuous
guarantee services for Daewoo cars sold in the U.S.

The U.S. car dealers for Daewoo Motors are requesting that
Daewoo continue to offer guarantee services for Daewoo cars sold
in Korea. Out of the 525 Daewoo Motors dealers in the country,
over 300 are requesting that GM include U.S. dealers as a part
of its acquisition plan for the bankrupt South Korean automaker.


HYUNDAI PETROCHEMICAL: SK Corp. Takeover Likely
-----------------------------------------------
SK Corp., South Korea's largest oil refiner, plans to form a
venture with an unidentified foreign partner to acquire Hyundai
Petrochemical Co., the Korea Herald reported, citing SK Managing
Director Yu Jeong Jun.

Analysts say it is still unclear whether SK Corp. intends to buy
the whole of Hyundai Petrochemical or parts of it.

Last year, Hanvit and 64 other creditors approved a 2 trillion
won rescue for Hyundai Petrochemical, resulting to a first-
quarter profit of 35 billion won from a 77.6 billion won loss at
the end of last year.

Creditors, who now fully own Hyundai Petrochemical following the
debt bailout, plan to sell all shares in the company by year-
end.

Hanvit Bank, a Hyundai Petrochemical creditor, is leading the
company's restructuring on behalf of other creditors.

The petrochemical company had a debt totaling KRW2.6 trillion as
of June 2001.


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


ABRAR CORPORATION: Unit's Litigation Hearing Fixed on Oct 16
------------------------------------------------------------
Abrar Corporation Berhad (Special Administrators Appointed),  
further to the Company's announcement on 13 December 2001 in
respect of the legal suit by Eng Lian Enterprise Sdn Bhd (ELESB)
against Bangsar Properties Sdn Bhd, a 100% sub-subsidiary of the
Company, announced that BPSB's Solicitors had on 9 May 2002
advised the Company that the Kuala Lumpur High Court has fixed
the matter for further Mention on 16 October 2002.


ASSOCIATED KAOLIN: Awaits SC's Nod on Proposals
-----------------------------------------------
Associated Kaolin Industries Berhad announced that the Kuala
Lumpur Stock Exhange (KLSE) approved an extension of two months
from 19 April 2002 to 19 June 2002 to enable AKI to obtain all
the necessary approvals from the regulatory authorities.

Reference is made to the announcement on 12 March 2002, in which
AKI announced that the KLSE had approved an extension to 19
April 2002 to enable AKI to obtain all the necessary approvals
from the regulatory authorities on AKI's Proposed Corporate and
Debt Restructuring Scheme (Proposals). As announced on 2 May
2002, the status of AKI's Proposals remains unchanged. The
approval from the Securities Commission for the Proposals is
still pending.


CHIN FOH: Lucksoon Faces Winding Up Petition Over Unpaid Debt
-------------------------------------------------------------
The Board of Directors of Chin Foh Berhad informed that Lucksoon
Contracts Sdn Bhd (Lucksoon), a company which CFB holds a 33%
effective equity interest, was served a winding-up petition on 7
May 2002 filed in the High Court of Malaya at Kuala Lumpur
(Companies Winding-up No. D7-28-169-2002) in respect of an
alleged debt of RM44,835.00 claimed by CCIS Syspecialists (M)
Sdn Bhd (CCIS). The date of the presentation of the winding-up
petition in the High Court was 20 February 2002.

The claim made by CCIS is in relation to an alleged outstanding
sum due and owing to CCIS for consultancy service in relation to
the various quality system for the establishment and
implementation of ISO 9001 for Lucksoon. The amount claimed does
not have any interest rate attached.

After seeking the consultation of its solicitors, the Board of
Lucksoon is of the firm view that the alleged debt claimed by
CCIS represents a debt towards which Lucksoon has a genuine and
bona fide dispute. The Board of Lucksoon has also instructed its
solicitors to apply for a striking out of the petition and/or an
injunction to restrain further proceedings in the winding-up
action.

The total cost of CFB's investment in Lucksoon is RM4.8 million.

The amount of claim by CCIS is relatively small and hence the
Directors are of the opinion that the Winding-Up Petition on
Lucksoon will not have any significant financial and operational
impact on the CFB Group.

The Board of CFB does not expect any losses arising from the
winding-up proceedings.


CSM CORPORATION: Provides Defaulted Payment Status Update
---------------------------------------------------------
CSM Corporation Berhad (CSM), pursuant to the KLSE Practice Note
No. 1/2001, updated on the status of default in interest
payments and principal loan repayments of the CSM Group bank
borrowings as at 30 April 2002. Details are set at the table
found at http://www.bankrupt.com/misc/TCRAP_CSM0515.doc

The loan facility with Alliance Bank Malaysia Berhad was settled
via the proceeds received from the asset disposal approved by
the shareholders of CSM at an Extraordinary General Meeting held
on 11 April 2002.

CSM on 3 May 2002 announced a proposed settlement & termination
agreement with Saujana Pertiwi Sdn. Bhd. (SPSB), whereby SPSB
shall pay in full the principal and outstanding interest on the
overdraft facility of RM45 million. This proposal is subject to
CSM's shareholders' approval.


ESPRIT GROUP: Solicitor to File Motion to Stay Winding Up Order
---------------------------------------------------------------
Esprit Group Berhad informed that the Shah Alam High Court had
on 10 May 2002 ordered the Winding-Up of EGB in a petition filed
by Southern Investment Bank Berhad, formerly known as Perdana
Merchant Bankers Berhad.

EGB will instruct its solicitors to file an application to stay
the Winding-Up Order under Section 243 of the Companies Act,
1965 in order to facilitate the on-going proposed restructuring
exercise.


FORESWOOD GROUP: Provides Litigation Add'l Info
-----------------------------------------------
Foreswood Group Berhad, further to the litigation suit no. 22-
34-2002-1 and in reply to KLSE's Query Letter reference ID: KA-
020503-33327 dated 06 May 2002, furnished this additional
information for public release:

1) Litigation arises due to default in repayment of the credit
facilities extended.

2) Interest rate

Facility Claimed Amount @ 28.02.2002 Interest Rate

Term Loan

   (i) Tranche 1 - RM12,517,884.60 AMMB - 7.31% p.a.

   (ii) Tranche 2

   AMMB - RM23,257,940.92 AMMB - 7.31% p.a.
   AMBB - RM33,804,864.44 AMBB - 8.65% p.a.

BA/RC

   (i) BA - RM8,618,424.07 7.06% p.a.

   (ii) RC - RM8,508,962.25 7.31% p.a.

TL

   Tranche 1 (i) Tranche 1 - RM839,705.41 7.31% p.a.
   Tranche 2 (ii) Tranche 2 - RM3,938,630.67 7.31% p.a.

RC RM5,655,276.93 7.31% p.a.

BA RM13,726,786.30 7.06% p.a.

Facility Sale Price Claimed Amount Interest Rate

Al-Bai Bithaman RM5,862,803 RM1,072,402
Ajil

B.A. RM5,932,988 7.06% p.a.

Revolving Al-Wujuh RM9,397,768 RM5,682,759.40
Financing Facilities

B.A. RM4,236,041 9.9% p.a.

3) Steps proposed to be taken:

   The company and Foreswood Industries Sdn. Bhd. is negotiating
with the banks to restructure the amount owing.


GEAHIN ENGINEERING: Answers KLSE's Litigation Query
---------------------------------------------------
Geahin Engineering Berhad, in reply to Query Letter by KLSE
reference ID: KA-020509-30837 regarding the Legal Suit:
Malaysian Oxygen Berhad (MOX) against Geahin, responded the
subject matter as follows:

   1) Except for the alleged disputed sum of RM77,705.68 by MOX,
there are no other and additional financial and operational
impacts on the Geahin Group.

   2) The Company is only exposed to a contingent loss on the
alleged disputed sum of RM77,705.68 arising from the said
litigation.

   3) MOX alleged that Geahin owes them for goods delivered and
unpaid cylinder rental charges of which is seriously questioned
and substantially disputed by Geahin.


MBF CAPITAL: Explains Auditors' 2001 Report Qualification
---------------------------------------------------------
MBF Capital Berhad, in accordance with Paragraph 9.19(35) of the
Exchange's Listing Requirements, explained that the
qualification stated in the Auditors' Report of its Annual
Audited Accounts 2001 is due to:

   a) As at 31 December 2001, the Group and the Company have net
shareholders' deficit of RM1,949,749,000 and RM1,997,344,000
respectively. The management of the Company is currently working
on a Proposed Scheme of Compromise (SOC) with its creditors
while certain subsidiaries of the Company are working on
Proposed Schemes of Arrangement (SOA) with their respective
creditors. The outcome of these exercises, which is uncertain as
at the date of this report, could result in adjustments being
made to certain amounts and classification of assets and
liabilities of the Group and the Company.

   b) As at 31 December 2001, the Group and the Company had
contingent liabilities of approximately RM292,411,000 and
RM801,023,000 respectively which were not provided for in the
financial statements. Of these, unsecured guarantees of the
Company of approximately RM218,411,000 were in respect of
credit facilities granted to certain subsidiaries of MBf
Holdings Berhad, a corporate shareholder of the Company.

The matters highlighted above had raised substantial doubt that
the Group and the Company will be able to continue as a going
concern. The ability of the Group and the Company to continue as
a going concern is dependent upon the successful outcome of the
various restructuring exercises. 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 SOA of certain subsidiaries of the Company and the SOC of
the Company were approved by their creditors at the recent court
convened creditors' meetings pursuant to Section 176 and 177 of
the Companies Act, 1965, held on 25 March 2002 and 26 March 2002
respectively. The Company's Adviser is presently preparing the
submission of the Company's SOC to the relevant regulatory
authorities. Upon approvals being obtained, a general meeting
would be held to seek shareholders' approval on the SOC.
Thereafter, implementation would take place and we are targeting
completion by first quarter of 2003.

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


MEASUREX CORPORATION: Q401 Unaudited Results Deconsolidated
-----------------------------------------------------------
Measurex Corporation Berhad, further to its announcement on 30
April 2002, announced that the unaudited results for the MCB
Group for the period ended 31 December 2001 include the results
of Measurex Holdings Pte Ltd (MH) group up to 31 October 2001
and thereafter, the results of the MH Group were deconsolidated
with effect from 1 November 2001. Reason being loss of control
of MH by the management of MCB and the subsequent liquidation of
MH and its subsidiaries, namely Measurex Engineering Pte Ltd and
Measurex Precision Pte Ltd.


PILECON ENGINEERING: Subsidiary Faces Winding-Up Petition
---------------------------------------------------------
Pilecon Engineering Berhad announced that a winding-up petition
had been presented at the Kuala Lumpur High Court on 21 February
2002 against Pilecon Geotechnics Sdn Bhd, a wholly-owned
subsidiary of the Company and served onto PGSB on 10 May 2002,
for a claim of RM1,054,193.50.

1. The Details of default or circumstances leading to the filing
of the winding-up petition against PGSB  

   The petition was filed by Supermix Concrete Industries
(Supermix) against PGSB. As a supplier of ready-mixed concrete,
Supermix supplied and delivered ready-mixed concrete to PGSB's
various projects. Supermix alleged that a sum of RM1,054,193.50
is due and owing by PGSB of which PGSB denies owing to Supermix
and genuinely disputes the said claim.

2. The total cost of investment in PGSB : RM20 million

3. The financial and operational impact on the Group

   There is no operational impact to the Group. In the event the
winding-up petition succeeds, there would be an estimated
exceptional loss of RM1,054,193.50.

4. The expected losses : PGSB is expected to incur legal fees of
approximately RM12,000.00

5. The amount of interest claimed: Nil

6. The date of hearing of the winding-up petition: 21 May 2002.

7. The steps taken and proposed to be taken by PGSB in respect
of the winding-up proceedings: PGSB will take all possible
actions to contest the winding-up petition served.

The Company also advised that trading in the above Company's
securities was suspended with effect from 9.00 a.m., Monday, 13
May 2002 until further notice.


SELOGA HOLDINGS: Seeks Regularization Plan Time Extension
---------------------------------------------------------
Seloga Holdings Berhad, in relation to PN No. 4/2001, is
required, inter-alia, to submit plans to regularize its
financial position (Regularization Plan) to the relevant
authorities, including to the Securities Commission within 2
months from the date of the Requisite Announcement i.e. by 4th
April 2002. In this regard, the KLSE had approved the Company's
application dated 29th March 2002 for an extension of time to
4th May 2002 to enable the Company to make a submission of the
Regularization Plan to the authorities for approval.

The Board of Directors of the Company wishes to announce that
the Company has on even date revised its application to the KLSE
for a further extension of time to submit the Regularization
Plan to the relevant authorities from 4th June 2002 to 24th June
2002.

This is considering that additional time will be required to
finalize negotiation with its creditors for the preparation for
the submission to the authorities and finalization of the
details of the Regularization Plan undertaken.


YEO HIAP: Voluntarily Liquidates Dormant Units
----------------------------------------------
Yeo Hiap Seng (Malaysia) Berhad advised that pursuant to section
254(2) of the Companies Act 1965, the members of its wholly
owned subsidiaries, Yeo Hiap Seng (Sabah) Sdn Bhd and Yeo Hiap
Seng (Malacca) Sdn Bhd have, by way of special resolution,
resolved to voluntarily wind up their respective companies and
that Mak Kum Choon and Kek Ah Fong be appointed as liquidators
to act jointly and severally for the purposes of such winding-
up.

The abovenamed subsidiary companies are dormant.

The winding-up of the said subsidiary companies are not expected
to have any material financial impact on the earnings or net
tangible assets of the company and group.


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


NATIONAL POWER: Transco Privatization Delayed to 2002's End
-----------------------------------------------------------
The privatization of National Power Corp. (Napocor)'s
transmission assets will be delayed to end of this year as
certain regulatory approvals are required before such sale is
carried out, ABS CBN News reported.

"There is this issue on franchise. The concessionaire wants the
franchise to go with the sale, meaning, it wants to own the
franchise. But we need to amend the law first," National
Transmission Co. (Transco) president Asisclo Gonzaga said.

The key amendments proposed to the Electric Power Industry
Reform Act or RA 9136 include granting Transco a new nationwide
franchise for operation of the transmission system and grid for
50 years; transferability of Transco's nationwide franchise for
operation of transmission system and grid to concessionaire;
inclusion of Edgardo del Fonso, president of the Private Sector
Assets and Liabilities Management (PSALM) company, in the
Transco board of directors; exemption of PSALM, Transco from
taxes, fees and other charges; exemption of from guarantee
ceiling of the transferred NAPOCOR indebtedness and independent
power producer (IPP) obligations to PSALM; and granting of
eminent domain power to PSALM.

PSALM is tasked to oversee the privatization of Napocor's
assets. The state firm's generating assets would be grouped
through the so-called generation companies (GENCOS) and
transmission facilities to be sold through the Transco.

The PSALM had earlier projected to complete the sale of Transco
in June or July.

Gonzaga added the transmission assets are expected to fetch a
hefty $2 billion.


PHILIPPINE AIRLINES: Slump Erodes Airline's Profitability
----------------------------------------------------------
The country's flag carrier, Philippine Airlines, flew back into
the red with a net loss of 1.5 billion pesos in the fiscal year
ended March, as the September 11 terrorist attacks in the United
States dampened people's appetite for travel, the Philippine
Daily Inquirer reported.

PAL President Avelino Zapanta said that that the airline could
have been profitable if not for the adverse impact of the
terrorist attacks in the United States.

Without the bleak impact of September 11 on tourism, PAL was on
its way to reaping one billion pesos in profits in the past
fiscal year, Zapanta said.

Some 2.11 billion pesos in losses in September, October and
November wiped out about 600 million pesos in profits made in
the first five months of the fiscal year from April 2001, he
said.

Makati-based Philippine Airlines, which in February incurred a
net loss of 358 million pesos, is entering its fourth year of a
10-year rehabilitation scheme after a labor strike crippled
operations in 1998.


PHILIPPINE LONG: Sets Note Price
--------------------------------
Manila-based telecommunications giant Philippine Long Distance
Telephone Co. (PLDT) announced on Monday a tender offer
consideration for its 8.5 percent notes due 2003 and 10.625
percent notes due 2004.

The tender offer is subject to the terms and conditions set
forth in the company's offer to purchase dated April 11, 2002.
This will expire at 5 p.m. New York time on May 15, unless
extended by the company.

Holders of notes who tendered prior to 5 p.m. on May 2, 2002,
which was the early repurchase payment date, will receive the
tender offer consideration plus the early repurchase payment of
$15 per $1,000 principal amount of notes.

The tender offer consideration for the 8.5 percent notes due
2003 was determined using the yield of the 3.875 percent US
Treasury note due June 30, 2003 (the applicable reference
security), plus a fixed spread of 350 basis points.

The yield on the applicable reference security, as calculated by
the dealers-managers at 2 p.m., New York City time, on May 10,
2002, was 2.410 percent.

Accordingly, the tender offer yield and the tender offer
consideration per $1,000 principal amount of notes are 5.910
percent and $1,012.55, respectively.

The total consideration is $1,027.55, which includes the early
repurchase payment.

The tender offer consideration for the 10.625 percent notes due
2004 was determined using the yield of the 5.25 percent US
Treasury note due May 15, 2004 (the applicable reference
security), plus a fixed spread of 385 basis points.

The yield on the applicable reference security, as calculated by
the dealer managers at 2 p.m., New York City time, on May 10,
2002, was 3.207 percent.

Accordingly, the tender offer yield and the tender offer
consideration per $1,000 principal amount of notes are 7.057
percent and $1,051.68, respectively.

The total consideration is $1,066.68, which includes the early
repurchase payment). All prices assume a May 17, 2002 payment
date.

Credit Suisse First Boston Corp. and Morgan Stanley & Co. Inc.
are acting as the telecom giant's dealer-managers in the
transactions.

Meanwhile, PLDT is expected to make a net income of 1.3 billion
pesos in January-March 2002, double the 629 million in profit it
made a year earlier.

Stockbrokerage house DBS Vickers Securities said the gain is
mainly due to the cut in Pilipino Telephone Corp.'s (piltel) net
loss contribution and the strong showing of cellular phone
subsidiary Smart Communications Inc.

PLDT's good performance and fund-raising measures would help it
address its obligations totaling $2.8 billion, most of which is
denominated in dollars. Around $1.3 billion of that debt is
scheduled to mature between this year and 2004.

According to investment bank BA Asia, PLDT owes $766.9 million
to various export credit agencies, with German development bank
Kreditanstalt fuer Wiederaufbau the largest, holding $474.9
million.


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


SEMBCORP INDUSTRIES: Cuts Stake in Losing China Park
-----------------------------------------------------
Singapore conglomerate SembCorp Industries will cut its stake in
a loss-making industrial park in eastern China and transfer
management control to its Chinese partner.

According to a Reuters report, Singapore-Wuxi Investment
Holdings, a Singapore consortium 78.4 percent owned by SembCorp
Industries, will transfer 21 percent of its stake to the
Economic Development Board Group Corporation of the New District
of Wuxi, a unit of the Wuxi municipal government.

This would reduce SembCorp's holding in Wuxi-Singapore
Industrial Park Development Co to 38.5 percent from 54.8
percent.

As part of the agreement, the Chinese firm will also transfer a
25 percent stake in Wuxi Garden City Mall Hotel Co to the
Singapore consortium, bringing its the latter's stake to 95
percent.

In April, SembCorp Industries Ltd has agreed to sell its
remaining 20 percent stake in Singapore Computer Systems to
Green Dot Capital Pte Ltd for S$53 million, or S$1.73 per share.

The sale is in line with the non-core asset divestment program
of SembCorp Industries as it seeks to focus its operations on
utilities, engineering & construction, environmental
engineering, logistics and marine engineering.

SemCorp - http://www.sembcorp.com.sg- is Singapore's largest  
engineering and construction contractor. The company's total
current assets as of December 2000 stood at US$1.48 billion,
against liabilities of US$1.83 billion.


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


AM/PM (THAILAND): Files Business Reorganization Petition  
--------------------------------------------------------
Convenient store AM/PM (Thailand) Company Limited (DEBTOR)'s
Petition for Business Reorganization was filed to the Central
Bankruptcy Court:

    Black Case Number 1692/2544

    Red Case Number- /2545

Petitioner: S.N. PRODUCTION TRADING COMPANY LIMITED

Debts Owed to the Petitioning Creditor: Bt606,059,283.82

Date of Court Acceptance of the Petition: December 6, 2001

Date of Examining the Petition: January 14, 2002 at 9.00 A.M.

Court has postponed the Date for Examining the Petition to
February 4, 15 and 19, 2002 at 9.00 a.m.

Court has postponed the Date for Examining the Petition to March
14, 2002 and April 4, 2002 at 9.00 A.M.

Contact: Mr. Chat Tel, 6792525 ext. 124


EMC PUBLIC: Discloses Shares Sale Results
-----------------------------------------      
EMC Public Company Limited posted the Results of its Share Sale
to the Kuala Lumpur Stock Exchange:

1. Information relating to the share offering
   Category of shares offered      :       Ordinary Shares
   Number of shares offered        :       14,044,170 shares
   Offered to                      :       1 Creditors
   Price per share                 :       Baht    10
   Subscription and payment period :       May 10, 2002

2. Result of the sale of shares
   [     ]       totally sold out
   [  X  ] partly sold out,  8,767,615 shares remaining.

The company will deal with the remaining shares as follows:

The plan administrator is unable to convert some debt to
ordinary shares because the official receiver hasn't issued the
orders of the claim for payment yet.  The plan administrator has
to receive all the orders before converting the debt to ordinary
shares again and then will consider the conversion for the
remaining shares.

3. Details of the sale

          Thai investors    Foreign investors   Total
      Juristic  Natural  Juristic  Natural      

No of persons      1         -           -           -      1
No of shares     5,276,555   -           -           - 5,276,555
Subscribed
Percentage of total 38       -           -           -      38
Shares offered for sale

4. Amount of money received from the sale of shares
   Total amount            :       Bt52,765,550
   Less expenses (specify) :                   -
   Net amount received     :       Bt52,765,550


SINO-THAI: BOD Meeting Approves Management Structure   
----------------------------------------------------
The Board of Directors of Sino-Thai Engineering & Construction
Public Company Limited reported the resolutions adopted on the
Board of Directors Meeting No.3/2002:

1. The Board of Directors has resolved to approve the Management
Structure, It was further approved that a Managing Director be
appointed and authorized to manage, operate and control the
Company's business operation.

2. For any transactions that require approval from the Board of
Directors or Shareholders Meeting pursuant to Law or Regulations
governing the business affairs of the Company, the Managing
Director shall comply the said Law and Regulations.

3. Furthermore, the Managing Director is hereby authorized to
delegate his power to other persons as deemed appropriate. The
Managing Director or his representative is prohibited from
conducting any transactions, which they may have a conflict of
interest with the Company or a subsidiary.


THAI TELEPHONE: Posts Q102 Operating Results
--------------------------------------------
Thai Telephone & Telecommunications Public Company Limited would
like to report its operational results for the first quarter of
2002, as follows:

As of March 31, 2002, the Company and its subsidiaries recorded
an operating profit of Bt424 million and a net profit of Bt296
million in comparison with an operating profit of Bt326
million and a net loss of Bt956 million for the same period of
2001. The improved operating results are due to changes in both
revenue and expense as described below.

Operating Revenues: The Company's operating revenue decreased
slightly from Bt1,696 million for the first quarter of 2001 to
Bt1,689 million for the same period of 2002 resulting from the
following details.  

        1. Concession Revenue decreased slightly from Bt1,667
million in 2001 to Bt1,659 million in 2002 as a result of lower
Average Revenue Per Unit (APRU) though more cumulative
billable lines. The ARPU for the first quarter of 2002 was Bt577
with the cumulative billable lines of 1,202,748 compared to
Bt623 and 1,197,386 lines as at the same period of the previous
year. Though lower ARPU, this stability of concession revenue
was mostly contributed by T-Tel operation which has commenced
the service since October 2001.

        2. Sales and Services Revenue, which solely contributed
by the subsidiaries from dropwire installation, in-house wiring
and telephone sets and equipment sales, slightly increased from
Bt29 million in 2001 to Bt30 million in 2002.

Operating Costs and Expenses: The Company's operating expense
largely declined from Baht related expense as follows.

        1. Operating, Administrative and General Expenses
significantly reduced from Bt612 million in 2001 to Bt542
million in 2002 as a result of certain discount from annual
payment of leased circuit rental to TOT. Besides, the
cancellation of the Company's rehabilitation since December 24,
2001 resulted a huge cost reduction in legal and financial
advisor fees.

        2. Depreciation & Amortization maintained at a normal
and same level at Bt599 million in the first quarter of 2002
compared with Baht 602 in the same period of 2001.

        3. Director's Remuneration decreased from Bt2.9 million
in 2001 to Bt2.1 million in 2002 mainly due to lower number of
directors.

Other Revenues and Expenses: Details of these items are
described as follows.

        1. Interest Income showed a great increase from Bt1
million in 2001 to Bt7 million in 2002 resulting from more
flexibility for the Company's investment after completion of
debt restructuring on Closing Date.

        2. Other Income increased from Bt22 million in 2001 to
Bt30 million in 2002 due to sales of the Company's products,
specifically T-BOX, T-Net and Caller ID.  

        3. Interest Expense reduced significantly from Bt699
million in 2001 to only Bt450 million in 2002 due to completion
of debt restructuring as well as continuing lower market
interest lending rate for both MLR and LIBOR.

        4. Income Tax increased largely from Bt3 million in 2001
to Bt24 million in 2002 as a result of a favorable operation for
the subsidiaries during the first quarter of 2002.
     
       5. Foreign exchange gain or loss representing a net
result of unrealized foreign exchange gain or loss on
revaluation of foreign currency liabilities as well as realized
gain or loss from actual foreign currency debt repayment within
the period. As total foreign outstanding debt of US$413 million,
the Company then recorded its net foreign exchange gain of Bt310
million for the first quarter of 2002, with the reference
exchange rate at Bt43.6178 per USD, which appreciated from
Bt44.3597 per USD at the end of 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 2002.  All rights reserved.  ISSN: 1520-9482.

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