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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

            Friday, July 5, 2002, Vol. 5, No. 132

                         Headlines
                   

A U S T R A L I A

CHIQUITA BRANDS: South Pacific CEO Resigns
COOGI AUSTRALIA: Applies for Administration As Slump Hits Sales
ECSI LIMITED: Discloses Appointment of New Director
SOFTWARE COMMUNICATION: Appoints New Directors


C H I N A   &   H O N G  K O N G

MASTER BASE: Winding Up Petition Slated for Hearing
WANTEX TEXTILE: Winding Up Petition Hearing Set


I N D O N E S I A

MANULIFE INDONESIA: Justice Dept Finds No Witnesses vs. Judges


J A P A N

DAIE INC: UFJ to Trim Down Loans to Retailer in two Years
DAINIPPON INK: S&P Cuts Rating To BB+pi
JAPEX OMAN: Court Approves Special Liquidation
NIPPON SHOKUHIN: Food Firm Files for Court Protection
NIPPON TELEGRAPH: Submits Financial Results

NISSAN CONSTRUCTION: Rinkai to Rebuild Bankrupt Firm Via Merger
WORLDCOM INC: Aims to Reduce Business in Japan
WORLDCOM INC: Requests Nasdaq Hearing


K O R E A

DAEWOO ELECTRONICS: Asks for 36 Senior Managers' Resignation
KOREA EXPRESS: Denies Rumor of Firm Sale to Lotte Group
SEOULBANK: Hana Bank, Two Other Firms Gain Bidder Status


M A L A Y S I A

PUTRA BHD: Liquidation On Track for Year-End Completion
TECHNOLOGY RESOURCES: Chair Steps Down, Hands Reins to Telekom
TECHNOLOGY RESOURCES: Denies Being Offered Deutsche's 16% Stake
TIME DOTCOM: All Options Being Considered to Save Firm


P H I L I P P I N E S

FAIRMONT HOLDINGS: Clarifies JV Deal With Megaworld
FIRST E-BANK: Widens Q1 Net Loss to P279.784M
PHILIPPINE LONG: Moody's Downgrades Outlook to Negative
PHILIPPINE LONG: Awaits Gokongwei-First Pacific JV Deal Details


S I N G A P O R E

ASIA PULP: Pays IBRA $90M
BBR HOLDINGS: Issues Scheme of Arrangement Update
BIL INTERNATIONAL: S&P Affirms BB Rating
DBS GROUP: Government Won't Keep Holdings "Forever"
LIANG HUAT: Issues Update on Restructuring Scheme

SEMBCORP INDUSTRIES: Ups Borrowing Capacity Via MTN Program
SEMBCORP LOGISTICS: Posts Changes in The Capital's Interests

     -  -  -  -  -  -  -  -

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


CHIQUITA BRANDS: South Pacific CEO Resigns
------------------------------------------
Phil Waddups, Chiquita Brands South Pacific Ltd's Chief
Financial Officer and Company Secretary has resigned and will
leave the company on July 5, 2002.

David Green who has held the position of Chiquita's Group
Treasurer for the last six months will replace him. David has
held many key senior finance positions, most recently Chief
Financial Officer of Sigma Company Limited's $1.5 billion
Wholesaling and Retail Services Division, where he played a key
role in rationalizing and restructuring that business.

For further information:
Contact:

Mr Mano Babiolakis, MANAGING DIRECTOR AND CEO
Chiquita Brands South Pacific Limited
Telephone: (03) 8481 1500
Mobile: 0403 586 363


COOGI AUSTRALIA: Applies for Administration As Slump Hits Sales
---------------------------------------------------------------
The retail slump in the U.S. is being faulted by Australian
fashion brand, Coogi Australia, for its decision to call in
administrators, says the Sydney Morning Herald.

The maker of colorful woolen jumpers and knitted garments that
popular in tourist shops appointed George Georges and Peter
McCluskey of Ferrier Hodgson as administrators, the report says.

According to Mr. Georges, it would still be "business as usual"
for the time being, while he and Mr. McCluskey meet with Coogi
Australia Inc., the US company responsible for sales and
distribution throughout the US market.

"It appears that the Australian group struck difficulty as a
result of a retail slowdown in the US, which has hit many
businesses since September 11 last year," Mr. Georges told the
paper.

He believes that one of the reasons for the company's woes is
its over-dependency in its international sales, which accounts
for 90% of all sales, a good a portion of which are generated
from the U.S.  He estimates the firm's debts to be in excess of
$25 million.   

Jacky Taranto established the company more than 30 years ago.  
It employs more than 340 people in design, manufacturing,
warehousing, retailing and administration and has five retail
outlets in Australia's tourist destinations, the paper says.


ECSI LIMITED: Discloses Appointment of New Director
---------------------------------------------------
ECSI Limited on Tuesday announced the appointment of Dr Huang
(Ben) Xu as a Non-Executive Director of the Company.

Dr Huang currently runs his own business consultancy practice in
Beijing where he assists new and established businesses across
China develop alliances and partnerships to take advantage of
opportunities arising from the opening up of the Chinese economy
and its recent admission to the WTO.

Between 1994 and 1999 Dr Huang worked for an Australian publicly
listed Company as General Manager of its Chinese operations.
Prior to that he worked in the Research Centre of Development
for the Chinese Central Government where he developed extensive
networks with officials and party workers, many of whom are now
Ministers or Senior Bureaucrats at central, provincial and city
government level.

CEO Mr Graeme Green said he was delighted to be able to attract
a candidate of Dr Huang's experience to the ECSI Board and that
Dr Huang's extensive high-level contacts would be an extremely
valuable resource as ECSI expands its business interests across
China.

Dr Huang has a Business Degree from the Shanghai University of
Finance and Economics (1985) and a PhD in Economics from the
University of New South Wales (1994). He is 47 years old and
currently resides in Beijing. He also has Australian residency.

Coinciding with this appointment, Mr Ross Homard resigned as
Non-Executive Director from ECSI with effect from the close of
business Friday 28 June 2002.

Company Chairman, Mr Jim Green said he would like to thank Ross
for his contributions to the Company's ASX listing and with the
rollout of its business in China.

ECSI Limited is an electronic security Company, which provides
security monitoring enhancements to complement the National
Alarm Response system (NAR system) currently being rolled out by
Beijing Jeton Yangtze Technology Company Limited (Jeton).

ECSI Limited listed on the ASX in April this year after raising
approximately $13.46 million from a share issue and convertible
note.

The Company recently announced that it had received the first
order under the 10-year contract with Jeton. Further orders will
be announced in the short term as Jeton connects clients to the
NAR system in Chengdu, Dalian and Beijing.

As previously announced, the Company is continuing advanced
negotiations with several global computer equipment
manufacturers who are keen on entering sales, financing and
servicing agreements over the 10-year term of the agreement with
Jeton. Negotiations will be finalized shortly.


SOFTWARE COMMUNICATION: Appoints New Directors
----------------------------------------------
Following the recently announced sale by Shell Australia of its
stake in Software Communication Group Limited (SOF) to
Bigshop.com.au Limited (Bigshop), the Software Communication
Group Limited announced on Thursday the following appointments
to its Board.

Mr Farooq Khan, Chairman and CEO of Bigshop, and Mr Victor Ho,
director of Bigshop have been appointed directors of SOF. Both
have a wealth of experience in the operations of listed
companies and will add value to the Board's strategic planning
and future direction.

Further, Mr Michael Schoenfeld has been appointed as a director.
Mr Schoenfeld is a Fellow of the Institute of Chartered
Accountants and Managing Partner of Schoenfelds. The SOF Board
will benefit from his financial background and experience.

SOF confirms the resignation of Mr Bruce Rosergarten as a
director of the Company, following the decision by Shell
Australia to sell its shares in SOF.

Mr Michael Neistat and Mr Robert Petty have also resigned. Both
were appointed in difficult circumstances last week and the
Company expresses its gratitude to them for fulfilling their
interim appointments.

SOF is also pleased to announce the appointment of Oliver Carton
as Company Secretary. Oliver is an experienced Company Secretary
of listed companies and was previously a director of KPMG in
charge of its Corporate Secretarial Group. Prior to that he was
a legal officer with ASIC. Oliver brings extensive knowledge of
corporate compliance and governance to SOF.

SOF now looks forward to a period of stability and progress
following the above appointments made with the backing of its
major shareholders.

According to TCR-AP on Monday, Software Communication Group
Limited (Sofcom) informed that that on 26 June 2002 at a meeting
of the Board of Sofcom, the Board resolved that as a result of
Robert Petty and Michael Neistat's Board appointment, it will
not be making an application to wind up the Company.


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


MASTER BASE: Winding Up Petition Slated for Hearing
---------------------------------------------------
The petition to wind up Master Base Investment Limited is
scheduled for hearing before the High Court of Hong Kong on July
10, 2002 at 9:30 am.  

The petition was filed with the court on April 8, 2002 by Bank
of China (Hong Kong) Limited whose registered office is situated
at 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong
Kong.


WANTEX TEXTILE: Winding Up Petition Hearing Set
-----------------------------------------------
The petition to wind up Wantex Textile Trading Limited is
scheduled to be heard before the High Court of Hong Kong on
August 14, 2002 at 9:30 am.  

The petition was filed with the court on May 23, 2002 by Bank of
China (Hong Kong) Limited (the successor of all the undertakings
of The Yien Yieh Commercial Bank Limited, by virtue of the Bank
of China (Hong Kong) Limited merger Ordinance Cap. 1167) whose
registered office is situated at 14th Floor, Bank of China
Tower, 1 Garden Road, Central, Hong Kong.


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


MANULIFE INDONESIA: Justice Dept Finds No Witnesses vs. Judges
--------------------------------------------------------------
The justice ministry admits facing difficulties in trying to pin
down the three judges accused of taking bribes that induced them
to declare Manulife Indonesia bankrupt last month.

Justice Minister Yusril Ihza Mahendra told the Antara news
agency that witnesses are shying away from investigators, who
have already finished getting the statements of the commercial
court judges.

"Even those people who were screaming during the hearing and
said that the judges had been bribed, do not want to become
witnesses," Mr. Mahendra told the news outfit.

The company, which has already appealed the decision to the
Supreme Court, was declared bankrupt on June 13.  An official of
the parent company said at the time he suspected the court had
been bribed.  The company is a subsidiary of Canadian insurance
firm Manulife Financial.

Mr. Mahendra says any evidence gathered as a result of the probe
would be endorsed to prosecutors for filing of possible criminal
charges.  He did not say whether there is a strong case against
the magistrates.


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


DAIE INC: UFJ to Trim Down Loans to Retailer in two Years
---------------------------------------------------------
UFJ Holdings Inc. will scale down loans extended to Daiei Inc.
and other large borrowers in two years, the Nihon Keizai Shimbun
and Nikkei reported Wednesday, citing President Takeshi Sugihara
in an interview with the Nihon newspaper published on Wednesday.

Excerpts from the interview are as follows:

Q: Margins at Japanese banks are low. While return on equity
averages more than 10 percent among European and U.S. lenders
that of domestic banks hovers between 3 percent and 5 percent
even when they are making money. In the face of this problem,
Economy Minister Heizo Takenaka has proposed that numeric
targets be set for banks and managers held accountable if they
fail to achieve them. What is your take on this?

A: We have set a goal of boosting group core business profits,
which now stand at around Y600 billion-Y700 billion, to more
than Y1 trillion in fiscal 2005, and raising group return on
equity to 12 percent. This is the minimum acceptance level. If
the goal is not achieved, then managers will be held accountable
by the in-house committee that appoints directors and the
committee that determines executives' salaries.

Such targets serve to clarify a course for management and to
attract institutional investors. They are not something that
should be set by the government.

Q: Outstanding UFJ group loans extended to Daiei Inc. stand at
Y760 billion. Many market players say that your group has
provided much more in loans to large borrowers than other large
banking groups have. They worry that your business may be
vulnerable to developments at borrowers. Is this a cause for
concern?

A: We have our own policies that set lending limits for each
credit rating that are stricter than the rules on large lending
under the Banking Law. Of course, there are some cases in which
lending exceeds the limit. But we reviewed the policies in
January, when UFJ Holdings was formed through the merger between
the former Sanwa Bank and the former Tokai Bank, and decided to
eliminate such cases in two years.

Q: There are also concerns over the shortage of capital at
Japanese banks, while the discussion about the need to inject
taxpayers' money into banks has not reached a conclusion.
Industry analysts criticize the four banking giants for being
slow to improve management efficiency and not being able to reap
benefits from industry regrouping. What is your view?

A: We shored up our capital base by issuing about Y200 billion
in preferred subscription certificates last fiscal year. The
environment at the capital markets is still not good, but we
would like to further strengthen our capital base when it gets
better.


DAINIPPON INK: S&P Cuts Rating To BB+pi
---------------------------------------
Standard & Poor's on Wednesday lowered its rating on Dainippon
Ink & Chemicals Inc. from triple-'B'-minus-pi' to double-'B'-
plus-pi, based on the likelihood that the Company will face
difficulty in reducing its high debt burden over the next few
years, given expected weakness in cash flows from its core ink
and industrial materials businesses.

Dainippon Ink is the world's top producer of printing inks and
organic pigments, with a global market share of about 30 percent
in both businesses. The Company has been strengthening its
global market position in these businesses and in industrial
materials through aggressive acquisitions. However, Dainippon
Ink's cost competitiveness is weak, owing mainly to the
Company's limited progress in consolidating its production and
sales bases and in lowering procurement costs. Sales fell in
fiscal 2001 (ended March 31, 2002), and funds from operations
(FFO) declined by over 40 percent (after adjusting for changes
in operating capital). These declines are attributable not only
to the stagnant demand in Japan and Europe, but also to the
weakened performance of the pigments and industrial materials
businesses in the U.S.

Dainippon Ink is highly leveraged and its financial profile is
weak. Reflecting its aggressive acquisitions, which were
primarily financed through bank borrowings and the issuance of
convertible bonds--the Company's ratio of total debt to capital
is high at around 75 percent. Dainippon Ink's total amount of
debt has slowly been decreasing since its peak of about 600 yen
billion in fiscal 1998. However, due to the limited prospects
for a meaningful improvement in cash flow, the Company's capital
structure will remain weak.


JAPEX OMAN: Court Approves Special Liquidation
----------------------------------------------
On June 20, 2002, The Tokyo District Court approved the start of
special liquidation for Japex Oman Ltd, according to Kyodo News
on Wednesday. The Company has been on a tailspin due to falling
crude oil prices and the strong yen.

Japex Oman is a unit of Japan National Oil Corp (JNOC). The firm
was set up in 1981 for involvement in oil development projects.

According to credit research firm Teikoku Databank Ltd, the
Company has total liabilities of 13.9 billion yen.


NIPPON SHOKUHIN: Food Firm Files for Court Protection
-----------------------------------------------------
Food-processing firm Nippon Shokuhin Co., which was hit by a
beef mislabeling scandal, has filed for court protection from
its creditors, AP Online said Wednesday.
  
The meatpacker tried to pass off 122 tons of foreign beef, worth
about 136 million yen, as domestic under the alleged scam, the
Agriculture Ministry said.

The firm was allegedly attempting to take advantage of a
lucrative government program that buys local meat potentially
contaminated with mad cow disease in order to get it off the
market.

According to credit research firm Teikoku Databank, the Company
has total liabilities of 21.85 billion yen ($180 million).


NIPPON TELEGRAPH: Submits Financial Results
-------------------------------------------
On June 28, 2002, Nippon Telegraph and Telephone East
Corporation (NTT East) has prepared a profit and loss statement
by services and separate profit and loss statements for voice
transmission services and leased circuit services in accordance
with Article 5 of Japan's Telecommunications Business Accounting
Regulations.

These financial documents were submitted to the Minister of
Public Management, Home Affairs, Posts and Telecommunications in
accordance with Article 17 of the same regulations.  

To see a copy of the financial documents by services, go to:
http://bankrupt.com/misc/NTTEast1.htm
http://bankrupt.com/misc/NTTEast2.htm
http://bankrupt.com/misc/NTTEast3.htm


NISSAN CONSTRUCTION: Rinkai to Rebuild Bankrupt Firm Via Merger
---------------------------------------------------------------
In a statement, Rinkai Construction Co Ltd said that as the
operational environment of the construction industry grows
increasingly tougher, the Company decided to help rebuild
bankrupt Nissan Construction Co Ltd, which filed for bankruptcy
on March 31 with debts estimated at JPY114.7 billion, and is
considering a merger and integration of operations in the
future.

"We are considering to dispatch human resources... and give
necessary financial help to Nissan Construction to allow it to
continue its current operations, to repay its debts and to
execute its rehabilitation plan," Rinkai said.

Details of its aid package to Nissan Construction will be
decided later. (M&A REPORTER - ASIA PACIFIC, Vol. No.1, Issue
No. 131, July 04, 2002)


WORLDCOM INC: Aims to Reduce Business in Japan
------------------------------------------------
WorldCom Inc is aiming to reduce its business in Japan in a bid
to raise funds for its rehabilitation, Kyodo News said
Wednesday, citing Chief Executive Officer John Sidgmore.

Mr. Sidgmore, however, denied that WorldCom would completely
withdraw from the Japanese market.

Last week, the U.S. Securities and Exchange Commission filed
civil fraud charges against WorldCom after the Company revealed
it had improperly accounted for nearly $4 billion in expenses,
inflating its earnings.

DebtTraders reports that Worldcom Inc's 11.250% bond due in 2007
(WCOM07USA1) traders between 26.5 and 28.5. For real-time bond
pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=WCOM07USA1


WORLDCOM INC: Requests Nasdaq Hearing
-------------------------------------
WorldCom, Inc. has recently requested a hearing before a Nasdaq
Listing Qualifications Panel to respond to Nasdaq's notice that
the Company has not complied with certain filing and fee
requirements necessary for continued listing. According to
Nasdaq rules, WorldCom's common and preferred stocks will
continue to be listed on The Nasdaq National Market pending the
issuance of a written determination by the Panel after the
hearing. There can be no assurance that the Panel will grant
WorldCom's request for the continued listing.

"WorldCom intends to make its case heard, and we believe that
Nasdaq will see that our Company is doing everything in its
power to uncover the circumstances of the intended restatement
and to make all the appropriate regulatory filings as soon as
possible," said John W. Sidgmore, WorldCom President and CEO.

About WorldCom, Inc.

WorldCom, Inc. is a pre-eminent global communications provider
for the digital generation, operating in more than 65 countries.
With one of the most expansive, wholly owned IP networks in the
world, WorldCom provides innovative data and Internet services
for businesses to communicate in today's market. In April 2002,
WorldCom launched The Neighborhood built by MCI - the industry's
first truly any-distance, all-inclusive local and long-distance
offering to consumers for one fixed monthly price. Effective as
of the close of regular trading on July 12, 2002, WorldCom will
eliminate its tracking stock structure and have one class of
common stock. For more information, go to
http://www.worldcom.com.


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


DAEWOO ELECTRONICS: Asks for 36 Senior Managers' Resignation
------------------------------------------------------------
Daewoo Electronics Co. asked 36 senior managers to resign
Wednesday as part of its restructuring scheme, Asia In Focus
said Thursday.

The plan calls for the removal of 1,100-1,200 jobs, and the
transfer of its home appliance units and video equipment unit to
its subsidiary.

The Company's creditors are aiming to provide financial aid via
a debt write-off and a debt-equity-swap scheme.

The creditors will discuss and finalize the plan at a meeting of
their representatives next Monday.


KOREA EXPRESS: Denies Rumor of Firm Sale to Lotte Group
-------------------------------------------------------
Korea Express Co has rejected a report from Money Today that
Lotte Group may acquire the logistics firm, AFX Asia said
Thursday.

The Company spokesman said the firm is not in a hurry to sell
itself to an investor as the Company's businesses have turned
around.

Korea Express has been under court receivership.

Creditor institutions are presently the controlling shareholders
of Korea Express.

The Korea Express Company Limited (KOREX) provides inland and
marine transportation and storage service business. The Group
has 59 domestic branches and 13 overseas branches.

DebtTraders reports that Korea Express' 0.375% convertible bond
due in 2009 (KEXP09KRN1) trades between 120 and 130. For real-
time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=KEXP09KRN1


SEOULBANK: Hana Bank, Two Other Firms Gain Bidder Status
--------------------------------------------------------
The government has selected Hana Bank and two foreign funds from
a roster of 10 investors that had submitted letters of intent as
preferred candidates for the acquisition of the nationalized
Seoulbank, the Korea Economic Daily reported. The three
investors will carry out due diligence studies for about 15 days
from Tuesday.

Hana Bank is most likely to be picked as the final acquirer as
the government has said it wants a profitable bank to acquire
Seoulbank.

The government plans to sign a memorandum of understanding to
sell Seoulbank either at the end of this month or early next
month. (M&A REPORTER - ASIA PACIFIC, Vol. No.1, Issue No. 131,
July 04, 2002)


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


PUTRA BHD: Liquidation On Track for Year-End Completion
-------------------------------------------------------
Renong Bhd expects to net RM577 million out of the liquidation
of Projek Usahasama Transit Ringan Automatik Sdn Bhd (Putra
LRT), The Star Online reports.

In an interview with the paper recently, Renong Executive Vice-
chairman Abdul Wahid Omar disclosed that the group is proceeding
smoothly with the liquidation process.

"We are now in discussions with Syarikat Prasarana Negara Bhd,
which will take over Putra's assets from Renong," Mr. Omar told
The Star.  The liquidation is due to be completed before the end
of the year.

Chairman Tan Sri Mohd Sheriff Mohd Kassim, meanwhile, told the
paper that the group would proceed with its restructuring
exercise while focusing on developing its assets.

Mr. Sheriff said the disposal is part of Renong group's strategy
to selectively divest certain properties to increase its cash
flow and to reduce total borrowings.

Aside from Putra, the group is also planning to sell 11.6% of
its equity interest in Commerce-Asset Holding Bhd.  Several
potential buyers are allegedly interested in the stake, which
can fetch as much as RM1.1 billion, according to Mr. Omar.

An EGM would be called at the end of next month to get
shareholders' approval for the disposal.  The group expects the
sale to be sealed within the year.


TECHNOLOGY RESOURCES: Chair Steps Down, Hands Reins to Telekom
--------------------------------------------------------------
The long-standing row between Telekom Malaysia and the
management of Technology Resources Industries ended Wednesday
after the former successfully conquered the company's board.

The coup sets in motion the merger of Telecok Malaysia's mobile
arm, TM Cellular, with Technology Resource's Celcom, the No.2
mobile group to upend the leadership of Maxis Communications in
the local market.

"All the resolutions were carried at the meeting.  Telekom
people are on board while Tajudin and his team have quit," a
Telekom TLMM official, who asked not to be named, told Reuters.  

The news agency says Technology Resources founder and Chairman
Tajudin Ramli stepped down during a recent special board meeting
and brought along with him his three trusted deputies.  Telekom
CEO Md Khir Abdul Rahman and four other executives were
appointed to replace them.  Mr. Tajudin's decision ended the
three-month-old takeover impasse.  

The four directors are Tan Sri Tajudin Ramli, 56, Bistamam
Ramli, 40, Datuk Lim Kheng Yew, 50, and Mohamed Ali Yusoff, 63.  
Misters Tajudin, Lim and Bistamam were also stripped of their
respective executive positions while Mohamed Ali was removed as
the telecommunication advisor of the company.  

The four nominees of Telekom Malaysia, namely, Datuk Dr. Md Khir
Abdul Rahman, 54, Datuk Dr. Mohd Munir Abdul Majid, 54, Lim
Kheng Guan, 60, and Rosli Man, 49, were appointed as directors.  

"I feel disappointed.  We have always said we want to create,
unlock and deliver the value to shareholders but now we are
totally out of the merger process," Lim Kheng Yew, a long-time
confidante of Mr. Tajudin and one of the four TRI directors who
resigned, told Reuters.

Telekom has long desired the company due to its 27% share of the
mobile phone market.  Although it has a near monopoly of the
fixed-line market, Telekom's mobile phone unit is weak.  

The 75% state-owned telecom giant first got its chance to gain a
foothold in the company when Mr. Tajudin defaulted on personal
loans of 1.4 billion ringgit.  This allowed a state agency to
forfeit and sell his assets including 13% in the company.

Telekom snapped up the stake and has since spent 1.7 billion
ringgit boosting its ownership to 31%.  It plans to spend
another 3-4 billion ringgit to buy out other holders to complete
the marriage of its loss-making mobile business with the
company, the report says.

Reuters says it is expected that the Board takeover will kick
off a long awaited consolidation in the crowded 18 billion-
ringgit telecom industry, which hosts five players at the
moment.


TECHNOLOGY RESOURCES: Denies Being Offered Deutsche's 16% Stake
---------------------------------------------------------------
Telekom Malaysia denies reports that it had been offered the 16%
stake of Deutsche Telekom in Technology Resources Industries for
a minimum of 4.00 ringgit apiece.

"Telekom Malaysia Bhd (TM) wishes to confirm that it has not
received any indication from Deutsche Telekom AG that it is
seeking a minimum of 4.00 ringgit a share and a 10-year contract
from TM to exit from Technology Resources Industries Bhd," the
company said in response to a query from the stock exchange.

Earlier, Malay Mail said the German telecom giant had allegedly
peddled its Technology Resources stakes to Telekom, which until
recently had been immersed in a drawn out takeover battle with
management.  

In a separate statement, Telekom Malaysia said it is unable to
comment on further speculation that Deutsche Telekom also has a
"buy-out clause" to veto important decisions in Technology
Resources.  Telekom Malaysia said it is "not a party to any
agreement," which grants Deutsche Telekom such rights.

The Germany firm has refused to comment on the reports.


TIME DOTCOM: All Options Being Considered to Save Firm
------------------------------------------------------
Loss-making Time dotCom Bhd could either be restructured, merged
or sold to another firm any time soon in order to survive, a
ranking official of State investment agency Khazanah Nasional
Bhd told AFX-Asia recently.

"We are considering all possible options for the company to move
forward as it is not profitable at the moment.  We may
restructure Time dotCom to make it profitable, or merge it with
another telco, or just sell it to other interested parties,"
Khazanah CFO Anwar Aji was quoted recently by Business Times as
saying.

Merging with Maxis Communications Bhd, however, is not an option
at the moment, Mr. Anwar told the paper.  

"Khazanah is not holding merger talks with any party," he said.  
"Whatever the decision, we'll make sure that shareholders' value
is maximized."

Time dotCom posted a net loss of 43.2 million ringgit in full-
year 2001 compared to its forecast of a net profit of 150.6
million ringgit, the report said.

Khazanah has a substantial stake in Time dotCom.


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


FAIRMONT HOLDINGS: Clarifies JV Deal With Megaworld
---------------------------------------------------
In reference to Circular for Brokers No. 1726-2002 dated July 1,
2002 relative to the approval by the Board of Directors of
Fairmont Holdings, Inc. (FAIR) to "swap a portion of its thirty
percent in the Joint Venture Agreement (JVA) with Megaworld
Corporation (Megaworld) with completed residential units of
Megaworld in the Marina Residential Project."

In reply to the Philippine Stock Exchange's query with regard to
the aforementioned matter, Megaworld Corporation (MFG), in it's
letter dated July 2, 2002, advised that:

Megaworld Corporation and Fairmont Holdings, Inc. are currently
negotiating the terms of the proposed swap of Fairmont's 30
percent share in their Joint Venture Agreement for the
development of the Marine Square project, with completed
residential units of Megaworld in the same project.

Megaworld will hold a meeting of its Board of Directors this
week to secure approval for the terms of the swap and the
implementation thereof."

To have a copy of the original disclosure click on
http://www.pse.org.ph/html/disclosure/pdf/dc2002_1747_MEG.pdf


FIRST E-BANK: Widens Q1 Net Loss to P279.784M
---------------------------------------------
First E-Bank posted a net loss of 279.784 million pesos in the
first quarter to March, versus a loss of 261.984 million pesos
in 2001, because of lower interest income.

First E-Bank three months to March results:

Revenue - 158.024 million pesos versus 258.504 million
Expenses - 437.808 million pesos versus 520.488 million
Net loss - 279.784 million pesos versus loss 261.984 million

The firm is a unit of Metro Pacific Corporation.

According to TCR-AP, as of end-2001, Metro Pacific has 18.5
billion pesos in consolidated interest bearing liabilities. Out
of these loans, 11 billion pesos is attributed to the Company,
2.7 billion pesos to Bonifacio Land Corp., 2.9 billion pesos to
Fort Bonifacio Development Corp., 1.1 billion pesos to Negros
Navigation Co., and 765 billion pesos to Landco Pacific.


PHILIPPINE LONG: Moody's Downgrades Outlook to Negative
-------------------------------------------------------
Moody's Investors Service on Wednesday has downgraded Philippine
Long Distance Telephone Company's (PLDT) outlook to negative
from stable.

Moody's also affirmed PLDT's senior unsecured rating of Ba3 and
its preferred stock rating of B2.

The downgrade is caused by delays in finalizing PLDT's near term
refinancing initiatives, which may impact its ability to cover
debt maturing in the next twelve months.

The Company intends to retire over half of its debt maturing in
2003 from free cash flows, while relying on new financing to
cover part of the balance.

Moody's note PLDT's planned increase in free cash flow
represents a significant improvement on the past and is subject
to favorable market conditions continuing, with a material
reduction in capex.

There is a heightened degree of refinancing risk given delays in
finalizing finance and the reliance on improved cash flows.

The rating outlook is, accordingly, revised to negative from
stable.

Successful completion of pending financing initiatives will
assist with a revision of the outlook, while ongoing delays may
result in further downward rating pressure.


PHILIPPINE LONG: Awaits Gokongwei-First Pacific JV Deal Details
---------------------------------------------------------------
The Board of Directors of Philippine Long Distance Telephone Co
(PLDT), are waiting for the details of the joint venture between
First Pacific Co Ltd and the Gokongweis to take control of PLDT
before making legal moves against the Gokongwei group, the
BusinessWorld reports. But once details of the deal are made
known to other PLDT shareholders, the board will make its legal
moves.

"The PLDT board's unanimous decision (to prevent a takeover of
PLDT by the Gokongweis) remains the same. Upon the advice of the
board's legal counsel, the PLDT board has decided to fully and
vigorously implement the resolution that the Gokongwei group is
a competitor regardless of the choice of corporate vehicle," the
paper quoted one of its PLDT sources as saying.

First Pacific has yet to submit to the PLDT board a copy of its
agreement with the Gokongweis to form a joint venture that will
acquire First Pacific's 24.4 percent stake in PLDT. (M&A
REPORTER - ASIA PACIFIC, Vol. No.1, Issue No. 131, July 04,
2002)


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

ASIA PULP: Pays IBRA $90M
-------------------------
Debttraders analysts Daniel Fan (852-2537-4111) and Blythe
Berselli (1-212-247-5300) reported that Asia Pulp & Paper has
paid $90 million to IBRA on June 28. Sinar Mas Group has settled
the balance of the $240 million or 20 percent lf the $1.2
billion debt due to IBRA with 16 percent shares of BII instead
of shares of APP Group.

As part of the arrangements between Sinar Mas Group and IBRA on
June 28, 2002, IBRA was granted a pledge of the shares in Indah
Kiat, Tjiwi Kimia and Pindo Deli.


BBR HOLDINGS: Issues Scheme of Arrangement Update
-------------------------------------------------
BBR Holdings (S) Ltd announced on Wednesday that in accordance
with the scheme of arrangement between BBR Construction Systems
Pte Ltd (BBRCS), a subsidiary of the Company, and certain
creditors of BBRCS, the participating creditors (other than the
small creditors) have been repaid in cash an amount equal to 10
percent of the approved claims and have been allotted the
Company's shares equal to 70 percent of the approved claims.

The participated small creditors of BBRCS have been repaid in
cash an amount equal to 50 percent of the approved claims.


BIL INTERNATIONAL: S&P Affirms BB Rating
----------------------------------------
Standard & Poor's on Wednesday has affirmed its double-'B'
corporate credit rating on Singapore-headquartered investment
holding Company BIL International Ltd. (BIL) and removed the
rating from Credit Watch with negative implications, where it
was placed on Sep. 21, 2001. The outlook is stable.

The rating action follows the successful refinancing of BIL's
US$300 million bank debt, due originally on July 23, 2002,
through a new three-year revolving loan facility, thereby
eliminating near-term refinancing risks. The rating reflects
BIL's relatively modest asset coverage of debt, with a ratio of
portfolio value to net debt of about 1.9 times, the
concentration of its investment portfolio in five major assets,
of which two are unlisted, high management turnover, and a
disappointing record of profitability. However, aided by cost-
cutting efforts and an equity accounting profit relating to the
disposal of 37 hotels by BIL affiliate Thistle Hotels in early
2002, BIL is expected to record a profit in fiscal 2002,
compared with a net loss of US$119.6 million in fiscal 2001.


DBS GROUP: Government Won't Keep Holdings "Forever"
---------------------------------------------------
Asked whether the government sees its stake in the banking
sector as a strategic one, Deputy Prime Minister and Monetary
Authority of Singapore chairman Lee Hsien Loong said he does not
expect the government to maintain its controlling stake in DBS
Group "forever," the Straits Times reported.

But as a matter of practical policy, he said he does not see the
government "deliberately reducing" its 30 percent stake or
divesting to another party.

If another Singaporean bank made a bid for DBS Group, Mr. Lee
said the government would "very seriously" consider their offer.
(M&A REPORTER - ASIA PACIFIC, Vol. No.1, Issue No. 131, July 04,
2002)

TCR-AP reported Thursday that DBS units, DBS Card Centre Pte Ltd
and POSB Computer Services Pte Ltd, have been placed under
voluntary liquidation on June 28, 2002, as part of its
restructuring exercise.


LIANG HUAT: Issues Update on Restructuring Scheme
-------------------------------------------------
The Board of Directors of Liang Huat Aluminium Limited announced
on Wednesday the restructuring update on the group's banking
facilities:

The Company's principal bankers are presently considering the
Group's business plan, operating action plan and funding
requirements.

The Company will keep shareholders informed of further
developments.


SEMBCORP INDUSTRIES: Ups Borrowing Capacity Via MTN Program
-----------------------------------------------------------
SembCorp Industries announced on Wednesday that it has increased
the size of its Medium Term Note (MTN) Program from $500 million
to $2 billion.

The first series issued under the MTN Program of $250 million
five-year fixed rate notes, was issued in October 2000, with a
maturity period of five years and bore a fixed coupon rate of
4.45 percent. per annum. The second series of $150 million
seven-year fixed rate notes issued in June 2001 bore a fixed
rate coupon of 4.125 percent. per annum. The third series of
$100 million three-year fixed rate notes, also issued in June
2001, bore a fixed rate coupon of 3.21 percent. per annum. The
Notes are listed on the Singapore Exchange Securities Trading
Limited and interest on the series are payable semi-annually in
arrears.

Increasing Financing Flexibility through the Debt Capital
Markets

The increase in the size of the MTN Program by $1.5 billion will
have no impact on SembCorp Industries' debt level and gearing,
until new notes under this Program are issued. This increase
will provide SembCorp Industries with greater flexibility and
options to fund its future capital expenditure, investments and
working capital requirements. It would also enable the Company
to further tap the debt capital markets on favorable terms when
the opportunity arises, and widen its investor base.

About the MTN Program:
The Program allows the Company to issue notes in the debt
capital markets with maturities varying between three months to
15 years (and any other maturity), which constitutes direct,
unconditional, unsubordinated and unsecured obligations of the
Company. The notes rank pari passu amongst themselves and
equally with all other present and future unsecured obligations
(other than subordinated obligations) of the Company. The notes
can be issued in Singapore Dollars, US Dollars and other major
convertible currencies and are subject to compliance with all
applicable legal and regulatory requirements.

Media contact:

Ms Beverley Wong
Executive
Group Corporate Relations
Tel : 63579 153
Fax : 63522 163
E-mail : beverley.wong@sembcorp.com.sg


SEMBCORP LOGISTICS: Posts Changes in The Capital's Interests
------------------------------------------------------------
Sembcorp Logistics Ltd recently posted a notice of changes in
substantial shareholder The Capital Group Companies, Inc's
interests.

Name of substantial shareholder: The Capital Group Companies,
Inc
Date of notice to Company: July 3, 2002
Date of change of deemed interest: July 2, 2002
Name of registered holder: Raffles Nominees Pte Ltd
Circumstance(s) giving rise to the interest: Sales in open
market at own discretion

Shares held in the name of registered holder

No. of shares of the change: 55,000
percent of issued share capital: 0
Amount of consideration per share excluding brokerage, GST,
stamp duties,
clearing fee: S$2.23
No. of shares held before change: 25,573,800
percent of issued share capital: 3
No. of shares held after change: 25,518,800
percent of issued share capital: 3

Holdings of Substantial Shareholder including direct and deemed
interest

No. of shares held before change: 78,149,200 (Deemed)
percent of issued share capital: 9.17 (Deemed)
No. of shares held after change: 78,094,200 (Deemed)
percent of issued share capital: 9.17 (Deemed)
Total shares: 78,094,200 (Deemed)


                         *********


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.

This material is copyrighted and any commercial use, resale or
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                 *** End of Transmission ***