---

            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, March 28, 2001, Vol. 4, No. 61


                               Headlines


A U S T R A L I A

HIH INSURANCE: NRMA Acquires Certain HIH Subsidiaries
RECORD MARKET: Long-time Retailer Up For Sale
HIH INSURANCE: QBE Drops Joint Venture Bid
BOND CORPORATION: Freed From Litigation By A$12M Payment
CO DESIGN: Workers "Unlikely To Get Entitlements"


C H I N A   &   H O N G  K O N G

CHENGDU HONGGUANG: Must Shape-Up, Regulators Say
SHANGHAI COMMERCIAL: Asked To Submit Rehab Plan
CHONGGING YU-GANG: Need To Restructure, Regulators Say
VTECH HOLDINGS: Restructure


I N D O N E S I A

DHARMALA SAKTI: Owner Violated Market Rules, Bapepam Says


J A P A N

SUMITOMO METAL: Stops U.S. Operations
FUJIKO COMPANY: Seeks Court Protection
AIWA COMPANY: To Close Plants, Cut Work Force & Sales
ASAHI JITSUGYO: Liquidates Due To Y18.3B Loans


K O R E A

HYUNDAI INVESTMENT: Group, Gov't To Sell To AIG
HYUNDAI ENGINEERING: Sinking Into Deep Crisis
HYUNDAI LIFE: Task Force To Deal With Funds Use


M A L A Y S I A

MALAYSIAN AIRLINE: BSN Buys 16M Shares
UTAMA BANKING: Merger With RHB Group Possible
CEMENT INDUSTRIES: RAM Rates Private Debt Securities Bid


P H I L I P P I N E S

NATIONAL POWER: Defers Review Of Deals With IPPs
URBAN BANK: Gov't Appeals Court To Include Execs In Charges
URBAN BANK: Two Banks Join List Of Buyers


S I N G A P O R E

ASIA PULP: Restructuring May Take Three Years To Complete
GRANDLINK GROUP: Winds Up


T H A I L A N D

ASIA TRUST: Ex-Execs Face Bt17B Bankruptcy Suit
SUPALAI PUBLIC: Repayment To BT Under Debt Restructuring
CHRISTIANI & NIELSEN: Posts Bt953.12M Net Loss In 2000
SCANDINAVIAN LEASING: Announces No Dividend Payment
ITALIAN-THAI: Sells Stakes In Subsidiaries

     -  -  -  -  -  -  -  -  -  -


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


HIH INSURANCE: NRMA Acquires Certain HIH Subsidiaries
-----------------------------------------------------
HIH Insurance Limited announced March 27, 2001 at the Australian
Stock Exchange that the transaction between NRMA Insurance Group
and HIH for the acquisition by the former of the latter's certain
subsidiaries has been completed.

The terms and conditions of the transaction are the same as
previously announced except that the overall transaction value of
$130 million has been reduced by $10 million to $120 million.
NRMA has now agreed to pick up all liabilities in respect to
certain workers compensation policies from the date on which HIH
went into provisional liquidation Thursday, March 15, 2001.


RECORD MARKET: Long-time Retailer Up For Sale
---------------------------------------------
A Queensland music record retail chain is up for sale. The Record
Market, which opened its first shop in 1960, was placed into
voluntary administration in early March 2001. As reported in The
Courier-mail March 26, administrator Brad Hellen, from Calabro
Partners, hopes to have a deal completed by April 2001 to sell
the company's four stores. He says the company has had difficulty
competing with larger chains, whose size allows them to sell CDs
for less and negotiate better rent deals. He also says the
Internet, which allows users to download some music for free, and
CD copying technology has hurt sales.


HIH INSURANCE: QBE Drops Joint Venture Bid
------------------------------------------
QBE Corporate Insurance Limited announced March 27, 2001 that it
had reached an in-principle agreement with the provisional
liquidators of HIH Insurance Limited not to proceed with the
proposed joint venture company for corporate insurances.

Subject to any necessary court, financier and regulatory
approvals, definitive agreements and limited due diligence, QBE
will now offer renewal to the corporate insurance and travel
policyholders of HIH in Australia and New Zealand and
professional liability policyholders of HIH in Asia. QBE will
assume the policy liabilities of HIH in New Zealand (except FAI
run off and certain trade credit policies) and the travel
insurance liabilities in Australia. All HIH Australian business
will be written into QBE's wholly-owned subsidiary, QBE Insurance
(Australia) Limited. The price payable by QBE to offer renewal of
the HIH business is consistent with the transaction previously
announced. QBE will not assume any of the liabilities of HIH in
Australia other than the travel liabilities under the in-
principle agreement.

Mr Frank O'Halloran, CEO of QBE said, "The appointment of
provisional liquidators to HIH caused both parties to review the
participation of HIH in the proposed joint venture. We are
pleased that we have been able to reach an acceptable alternative
with the provisional liquidators, which now involves QBE assuming
responsibility for all the existing travel insurance liabilities
of HIH in Australia. The revised transaction gives corporate and
travel HIH policyholders a higher degree of certainty after some
doubts caused by the provisional liquidation."

O'Halloran further added, "A substantial amount of HIH corporate
and travel insurance business has been renewed into QBE. The HIH
and QBE teams are working closely with brokers and other
intermediaries to provide insurance coverage for a large number
of corporate and travel policyholders of HIH."


BOND CORPORATION: Freed From Litigation By A$12M Payment
--------------------------------------------------------
The Courier-Mail has reported that Alan Bond reached an out-of-
court settlement for a A$12 million artwork claim. Liquidator,
Richard England, alleged Bond had attempted to hide the proceeds
from the sale of 14 paintings that belonged to the Bond
Corporation Holdings Limited. It is believed the Bond family has
agreed to pay $A12 million to creditors of Bond Corporation. The
settlement will mean Bond Corporation creditors have received
full compensation for the transaction. The agreement finalizes
all the litigation against Bond. His creditors accepted a A$3.25
million payment in 1995 for debts of more than A$620 million.


CO DESIGN: Workers "Unlikely To Get Entitlements"
-------------------------------------------------
Workers at failed office furniture company, Co Design Plus, are
unlikely to receive their full entitlements, according to The
Daily Telegraph. The company was placed into voluntary
administration in late March 2001. Vince Barilla, a partner with
insolvency firm Prentice Parbery and Barilla, said the company
owed more than A$600,000 to its 130 staff. Barilla said debtors
were owed about A$4m, while the company had about A$2m in stock.
Co Design Plus had offices in Melbourne, Brisbane, Canberra and
several locations in Sydney.


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


CHENGDU HONGGUANG: Must Shape-Up, Regulators Say
------------------------------------------------
China's securities regulators are giving the loss-making company,
Chengdu Hongguang Industrial, until April 30 to submit
restructuring plans or face expulsion from the market, the
official Xinhua News Agency reported, citing the China Securities
Regulatory Commission.  The deadline underscores a new push to
take action against companies that are essentially bankrupt,
though they continue to trade.

                          Background

The company is involved in the production & sale of various types
of telecommunications cables, optical fibres, cable joining
sleeves, as well as equipment, manufacturing parts & materials
for the production of cables. Based in Sichuan Province, PRC, it
has issued shares totaling 160 million, with a market
capitalization of HK$110.4 million. It was first listed in the
Hong Kong Stock Exchange on December 12, 1994.


SHANGHAI COMMERCIAL: Asked To Submit Rehab Plan
-----------------------------------------------
China's securities regulators are giving ailing Shanghai
Commercial Real Estate Development Industry, until April 30 to
submit restructuring plans or face expulsion from the market, the
official Xinhua News Agency reported, citing the China Securities
Regulatory Commission.  The deadline is part of a new push to
take action against essentially bankrupt companies that continue
to trade.


CHONGGING YU-GANG: Need To Restructure, Regulators Say
------------------------------------------------------
China's securities regulators are giving Chongqing Yu-Gang
Tioxide, until April 30 to submit restructuring plans or face
expulsion from the market, the official Xinhua News Agency
reported, citing the China Securities Regulatory Commission.  The
deadline underscores a new push to take action against companies
that continue to trade though they are essentially bankrupt.


VTECH HOLDINGS: Restructure
------------------------------
VTech Holdings Limited (OTC: VTKHY) (SEHK: 303) (London SE: VTH)
announced on Monday that it had drawn up a broad-based
restructuring plan that, over the next six months, will
streamline its global operations, reduce operating costs by
approximately US$30 million and focus on higher-margin products.

The aim is to improve the group's cost structure and operational
efficiency, to drive a sustained improvement in bottom-line
growth. "The plan we are announcing marks an important move for
VTech that aims to rebuild our profitability," said Allan Wong,
Chairman of VTech.

"Like other consumer electronics companies, we are faced with
high operating costs and strong competition. For the past decade,
we have pursued a strategy of driving top-line growth, which has
enabled us to achieve the size and economies of scale to build a
leadership position in global markets. We have been very
successful in this, increasing sales from US$263 million in 1990
to over US$1 billion last year. We are now focusing on driving
bottom line growth, through a comprehensive restructuring of
operations that will result in a leaner, more efficient and more
responsive VTech that is better placed to capture future market
opportunities."

The restructuring will increase economies of scale in VTech's
global operations and promote synergies among the group's
operating units. Product development will be rationalized to
focus on higher margins and more promising lines. VTech will
pursue seven key initiatives in its business restructuring, which
will contribute to the approximately US$30 million reduction in
annual operating expenses.

1. The senior management will be strengthened through the
appointment of a new chief operating officer who will oversee the
restructuring, ensure adherence to schedules and targets, improve
financial control and seek further ways to raise the efficiency
of the group.

2. The consumer telephone business operations in the US will be
rationalized and consolidated into one single location in
Portland, Oregon, in the US. The R&D structure will also be
reorganized to achieve greater cost efficiencies. Factories in
Mexico, which were acquired from Lucent Technologies in 2000 in
connection with the wired telephone business, will be divested.

3. The electronic learning products operations in Europe will be
centralized under one regional management to boost efficiency.
The operations in Hong Kong and Dongguan in Mainland China are
being streamlined.

4. The information appliances business will be integrated into
the consumer phone business unit, to leverage joint technology,
marketing and sales channels.

5. The multimedia communication products unit will be merged with
the contract manufacturing services unit.

6. eBusiness-related services, which are long-term investments
and do not yet contribute to group results, will be down-sized
and re-organized to achieve synergies with other group companies.

7. Executive directors have agreed voluntarily to reduce their
pay by 20 per cent.

VTech will slim its workforce by approximately 16 per cent
worldwide, or approximately 4,500 people, of which about 3,000
will be from the Mexico factories. The reductions have been
taking place since the end of 2000 and as far as possible are
being effected through attrition. For those being laid off, VTech
will ensure that the employees receive full severance payments in
accordance with local labour regulations.

The restructuring should significantly increase VTech's
competitiveness and allow it to focus on its three core
businesses - telecommunications, electronic learning products and
contract manufacturing, while developing mobile phones and
eBusiness-related services.

VTech is the world's leading manufacturer of high-frequency
cordless phones, with projected sales of approximately 15 million
units in its 2001 financial year. The group enjoys considerable
competitive advantages in manufacturing efficiency, high volume
production and its renowned VTech and AT&T brands.

These advantages have also helped it develop a well-regarded
contract manufacturing business for leading names in
telecommunications. The focus of the telecommunications business
unit now will be on higher-margin products such as advanced
technology 2.4Ghz cordless phones and more feature-rich 900Mhz
cordless phones.

VTech is also the leader in electronic learning products (ELPs),
which range from simple electronically-assisted toys for infants
to sophisticated tools for teenagers. The VTech brand has a
strong presence in the ELP market in both North America and
Europe.

VTech has a consistent track record of producing award-winning
products. The emphasis now will be on more segmented marketing
and the integration of features such as PC and Internet
connectivity, to raise the proportion of higher-margin sales.

VTech is also applying new approaches to production and R&D
processes to improve efficiency. VTech nevertheless warned that
temporary factors and one-off charges are expected to result in a
substantial operating loss for the full 2001 financial year,
before the positive effects of the restructuring begin to impact
on performance.

"We have built a tremendous business over the last 25 years and
have created value for shareholders. We have size, expertise in
cost-efficient manufacturing, strong brands and a diversified
product portfolio," said Allan Wong. "The leaner, more agile and
efficient company VTech will become in the next six months
through the restructuring, will provide strong bottom-line
growth, benefiting our shareholders."

VTech is a leading consumer-focused technology company. It
designs, manufactures, markets and sells electronic learning and
telecommunication products through its extensive international
distribution network. With an annual turnover over US$1 billion,
VTech currently has operations in 14 countries. The group
invested over US$50.5 million in R&D in FY00 and launches more
than 80 innovative and high-quality products each year.


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


DHARMALA SAKTI: Owner Violated Market Rules, Bapepam Says
---------------------------------------------------------
Defunct PT Dharmala Sakti Sejahtera's owner Suyanto Gondokusumo
violated capital market rules, the Capital Market Supervisory
Agency (Bapepam) said. The violation, AFX Asia reported citing a
Jakarta Post news story, involved the transfer of a 40 percent
stake in PT Asuransi Jiwa Manulife Indonesia to a firm based in
Hong Kong, without informing Dharmala's board and its
commissioners.

Bapepam alleged further that the transfer, made when Dharmala was
pronounced bankrupt, breached a joint venture contract between
Dharmala and Asuransi Jiwa Manulife.

Gondokusumo was not available for comment on the issue.


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


SUMITOMO METAL: Stops U.S. Operations
-------------------------------------
Sumitomo Metal Industries Ltd. revealed on Friday that it has
stopped operations of its joint venture in the U.S. with Trico
Steel, Jiji Press reported. It also explained that the move
resulted from its partner's failure.

Sumitomo officials said that its Alabama-based venture, Decatur,
which started running in March 1997, will file petitions to
reorganize as covered by Chapter 11 of the U.S. Bankruptcy Code.
This will run parallel to its major shareholder LTV Corp.'s
application filed late last year.

LTV holds half of this US-based steelmaking venture, while
Sumitomo Metal and Britain's Corus group hold 25 percent each,
according to JiJi.

Trico has debts amounting to $350 million at the end of 2000, 20
percent of which is expected to have adverse impact on Sumitomo
Metal.


FUJIKO COMPANY: Seeks Court Protection
--------------------------------------
Midsize Japanese contractor, Fujiko Company, sought court
protection from creditors under the corporate rehabilitation law,
at the Tokyo District Court on Friday, Japan Times Online
reported Monday. Fujiko, which is listed in the Tokyo Stock
Exchange and the Osaka Securities Exchange, has total group
liabilities of Y83.17 billion.

Fujiko suffered from a financial crisis, the Times said, partly
as an aftermath of its failure to redeem its golf course
investments made at the height of the asset-inflated economic
bubble in the late 1980s. Fujiko is also laden with interest
payments on bank loans used to fuel the operations of its group
of companies.

Fujiko has a negative net worth of Y12.3 billion on a
consolidated basis in fiscal 1999, which ended March 31, 2000,  
Times said.


AIWA COMPANY: To Close Plants, Cut Work Force & Sales
-----------------------------------------------------
Three major plants of Aiwa Company (TSE:6761) will all be
incorporated into one plant in accordance with its restructuring
plan, Asia Pulse reported yesterday, citing an announcement by
the company. This integration, resulting from the closures of the
two plants, will also result in the cutting of its work force by
10,000 every year, and thus cutting by 30 percent the group sales
to about Y210 billion by 2002.

The restructuring plan will also call for the operations halt in
the manufacturing of unprofitable products, AsiaPulse said, and
will shift focus on producing portable audio players, DVD players
and other digital equipment, including small audio players using
semiconductors.

The plants that are bound for closure in fiscal 2001 are in Iwate
Prefecture, Indonesia and Malaysia, AsiaPulse said. Production
will be delegated to Sony EMCS Corporation, a Sony Corp
(TSE:6758) subsidiary, and to other Chinese manufacturers.

Aiwa predicts that it will incur a group net loss of Y37.2
billion in the current year through March 31. The figure is
attributed to price competition with products manufactured in
China and in Southeast Asia. The delay in clinching new
businesses, like digital consumer electronics, will also be cited
as one of the reasons, AsiaPulse said.


ASAHI JITSUGYO: Liquidates Due To Y18.3B Loans
----------------------------------------------
Asahi Jitsugyo, an Asahi Mutual Life affiliate engaged in real
estate, is undergoing liquidation as it had accumulated Y18.3
billion in debts, Japan Times Online said, as informed by Teikoku
Databank. The motion to liquidate was approved by the Tokyo
District Court.

Asahi Mutual Life was also reported saying that it had intended
to liquidate its real estate affiliate, as its ban from doing
real property rental will commence in April 2002 covered under
the revised Insurance Business Law.

The insurance company's earnings will not be affected by the
affiliate's plight.

Asahi Jitsugyo was established in 1960 by the Asahi Mutual Life,
which holds a 10 percent stake. It is engaged in real estate
trading and management and acts as a life insurance agency.


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


HYUNDAI INVESTMENT: Group, Gov't To Sell To AIG
-----------------------------------------------
Hyundai Investment Trust Company (HITC) securities could be spun-
off from the Hyundai group and sold to an American consortium,
AIG, The Digital Chosum reported Tuesday, as talks between Korean
government and AIG are in full swing.

Meanwhile, the Anjin accounting firm is currently undertaking
asset valuation of the company.

The report also said Hyundai Securities, the largest shareholder
of HITC, intended to sell off its equity stakes in the company.
HITC's spin-off measure may be sold in package deal to AIG along
with Hyundai Securities and Hyundai Investment Trust Management
Company.  

Moreover, according to the Chosun report, the government will
likely suspend all negotiations if public fund infusion will go
beyond W1 trillion, since both parties had estimated Hyundai
unit's capital deficits at W1.2 trillion.


HYUNDAI ENGINEERING: Sinking Into Deep Crisis
---------------------------------------------
Kim Yoon-kyu, president of Hyundai Engineering and Construction
(HEC), announced Monday that the company's capital base is bound
to take a nosedive to below-zero level as a result of its
deficits in fiscal year 2000, the Korea Herald reported.

"Hyundai Construction suffered huge losses last year, due to
massive sales of its holdings of securities at a loss and
mountains of uncollected construction fees from abroad," said Kim
as quoted by the Herald.

The company has been suffering from mounting losses from the
business, pegged at over W500 billion ($400 million). Moreover,
HEC's financial woes will continue to be weighed down by the
slump in the North Korean tourism business. Added to this, it has
been burdened by its monthly tourism fee of $12 million for Mt
Kumgang.

Kim, the Herald said, threatened that the loss of Hyundai
Construction's invisible corporate value and assets would have
adverse impact on the national economy.

He forecast company's net profit this year to reach about W850
billion.


HYUNDAI LIFE: Task Force To Deal With Funds Use
-----------------------------------------------    
The Public Fund Management Committee, a private-governmental task
force to oversee the use of public funds, might handle the
insolvency plight of Hyundai Life Insurance. And how it will be
dealt with will depend on the results of the panel's meeting
today.

Hyundai's case will be tackled along with two other insolvent
life insurers, Hanil and Samshin.

According to a Korea Herald report, the members of the committee
met last week to "determine the future of the three troubled
insurance companies but failed to arrive at a conclusion."

"The committee is to meet Wednesday to take up the issue again,"
an official at the Ministry of Finance and Economy told the
Herald.


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


MALAYSIAN AIRLINE: BSN Buys 16M Shares
--------------------------------------
Bank Simpanan Nasional Bhd has acquired 2.15 percent stake in
Malaysian Airline System Bhd (MAS), equivalent to 16.56 million
in shares, the Edge reported Saturday.

The national savings bank said that this acquisition was made
over the past month from the open market and for investments, the
Edge report continued. 15.42 million shares were bought on Feb
27, while another 1.14 million shares were acquired between Feb
28 and March 16 from the open market.


UTAMA BANKING: Merger With RHB Group Possible
---------------------------------------------
Utama Banking Group Berhad (UBG) announced last week at the Kuala
Lumpur Stock Exchange that Tan Sri Abdul Rashid Hussain's
comments and suggestion of a possible merger between UBG and the
RHB Group seem interesting and worth investigating. The board of
directors of UBG is reviewing the situation.

On a preliminary basis, Tan Sri Abdul Rashid Hussain's suggestion
has its merits and UBG will take the necessary steps to consult
Bank Negara Malaysia (BNM) including seeking permission from BNM
to begin discussions with the RHB Group.

UBG will keep shareholders informed of any developments.


CEMENT INDUSTRIES: RAM Rates Private Debt Securities Bid
-----------------------------------------------------------
Rating Agency Malaysia Berhad has assigned enhanced long and
short-term ratings of BBB3(s) and P3(s) to Cement Industries of
Malaysia Berhad's proposed RM100 million 5-year Commercial
Paper/Medium Term Notes Programme (CP/MTN).

An enhanced long-term rating of BBB3(s) has also been assigned to
CIMA's proposed RM166 million 5-year Redeemable Convertible
Secured Loan Stocks (RCSLS). While the Securities Commission has
granted the approval for the proposed CP/MTN, the proposed RCSLS
is still pending approval from the said authority.

The purpose of the RM100 million CP/MTN is to finance, in part,
the acquisition of 35% equity stake in Negeri Sembilan Cement
Industries Sdn Bhd ("NSCI") from Perbadanan Kemajuan Negeri
Negeri Sembilan, an additional injection of RM60 million into
NSCI and for working capital requirements of CIMA and its
subsidiaries. The RM166 million RCSLS is part of the debt
restructuring exercise between CIMA, NSCI and the secured
financial institutional lenders of NSCI.

The ratings reflect the credit risk of CIMA without potential
adverse implications arising from the parent-subsidiary
relationship with United Engineers (Malaysia) Berhad (UEM).

The enhanced ratings are based primarily on two covenants
constraining significant further channeling of funds from CIMA to
UEM. First, there is a proposed covenant in the CP/MTN and RCSLS
issues restricting future loans and advances to the holding
company, UEM. As such, the covenant would to some extent isolate
the credit risk of UEM from CIMA's credit risk profile.

Second, a covenant to restrict significant dividend payments will
be placed on CIMA. The covenants will be incorporated into the
Trust Deeds of the respective Private Debt Securities issues.


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


NATIONAL POWER: Defers Review Of Deals With IPPs
------------------------------------------------
Energy Secretary Jose Isidro Camacho disclosed in a Philippine
Star report March 26, 2001, that his department has "decided to
defer the review" of the contracts between National Power
Corporation (Napocor) and independent power producers (IPPs). He
reasoned, "There is a possible inclusion of a provision in the
[Power Reform] bill that would also require a review."

Napocor President Jesus Alcordo raised his proposition to review
the IPP contracts as part of the measures to cut down the
company's mounting losses, the Star reported.

The power firm is considering restructuring the IPP contracts via
an extension for debt repayments to 25 years. Its obligations
owed to the foreign-denominated IPPs comprise the bulk of its
debts. Napocor's debts, as of December 2000, total P900 billion,
more than half of which ($10 billion) is owed to the IPPs.

Initial studies showed that areas in the IPP contracts might
possibly be revised to allow the ailing power-provider to
recover. Apart from this, Napocor will also review the payments
for operations and maintenance given to the IPPs.


URBAN BANK: Gov't Appeals Court To Include Execs In Charges
-----------------------------------------------------------
The government is appealing to the Regional Trial Court of
Makati, in a motion for reconsideration, to overturn its earlier
ruling that excluded two Urban Bank officers from estafa charges
raised by Bangko Sentral ng Pilipinas and the Philippine Deposit
Insurance Corporation, the Philippine Daily Inquirer reported  
Monday.

The two Urban Bank executives are chairman Arsenio Bartolome III
and senior vice president Corazon Bejasa. An earlier court ruling
cited a lack of sufficient evidence to prove that the two had
knowledge of the bank's purchases of the investment house's bad
loans and excluded them.

Government prosecutors, the Inquirer said, argued otherwise,
adding that they have documents to prove so.

BSP and PDIC found out that the closed bank's liquidity crises
resulted from the collapse of its subsidiary investment house,
wherein the Urban Bank reportedly holds 40 percent of shares.


URBAN BANK: Two Banks Join List Of Buyers
-----------------------------------------
Business World reported on Monday, citing an industry source,
that International Exchange Bank (iBank), run by Ramon Sy, and
Tambunting-owned Planters Development Bank have expressed
interest in Urban Bank. The two are joining a list of prospective
buyers, which includes Banco de Oro Universal Bank (BDO), and
Rizal Commercial Banking Corp. (RCBC) of the Yuchengco's.

The source told World that the two banks "are in the process of
evaluating Urban Bank."

Plantersbank poses to be a strong contender in the eventual bid
as its market niche in small and medium enterprises (SMEs) runs
parallel to Urban Bank's target market.

A publicly listed company, Plantersbank is the third largest
thrift bank in the country, while middle-size iBank is the 20th
largest bank in the country. The latter has assets, as of last
year, amounting to P35.6 billion.


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


ASIA PULP: Restructuring May Take Three Years To Complete
---------------------------------------------------------
Asia Pulp & Paper Company (APP) expected that its planned debt
restructuring might be completed in 2 to 3 years, The Asian Wall
Street Journal reported, citing a source familiar with the
company. The amount involved in this proposal reached US$12
billion.

APP met last week with a number of its major creditors, the first
meeting of its kind between concerned parties since the
financially beleaguered company had announced default on all its
debt payments two weeks ago, the Journal said.

APP is expected to complete drawing up its proposal for debt
restructuring within the next 6 months. It has appointed Credit
Suisse First Boston as its adviser, while White & Case LLP and
Singapore's Drew & Napier as legal counsels.

APP holds its headquarters in Singapore, while most of its assets
are in Indonesia and China. The company also holds American
depository receipts listed on the New York Stock Exchange.


GRANDLINK GROUP: Winds Up
-------------------------
Grandlink Group has been wound up by Singapore's High Court, the
Straits Times reported on Tuesday. Grandlink has debt obligations
to its creditors amounting to over US$18 million.

Justice G P Selvam appointed liquidators Monday to take over the
company, shrugging off a proposal by Grandlink to appoint a third
party to run the company rather than wind it up, the Times said.  

Grandlink's funeral march began when Internationale Container
Transport, a German transportation firm, filed the petition with
the court, citing Grandlink's failure to pay its debts amounting
to US$290,660, the Times said. The petition received support from
OCBC Bank and law entity David Chong & Company, to whom Grandlink
owes US$18 million and US$20,000, respectively.

According to the Times report, Grandlink lawyer Edwin Lee asked
the court for two weeks' deferment for it to finalize
negotiations for capital infusion with a Taiwanese company.
However, the Justice Selvam rejected the application, the Times
said.


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


ASIA TRUST: Ex-Execs Face Bt17B Bankruptcy Suit
-----------------------------------------------
Three former top executives and shareholders of the defunct Asia
Trust Bank (ATB) are facing bankruptcy suits filed against them
by Dhipaya Sin Co, ATB's asset management arm, Bangkok Post
reported Monday. They are Wallop Tarnvanichkul, Methinee
Tarnvanichkul and Tinnakorn Tarnvanichkul, and all owing the bank
a combined amount of over Bt17 billion.

In this bankruptcy suit, the Post reported that Wallop owes the
bank Bt6.38 billion, while his daughter, Methinee, owes Bt4.98
billion and his son, Tinnakorn, owes Bt5.77 billion. While
Wallop's and Tinnakorn's whereabouts are unknown, Methinee is
going to refute the action against her and her case will be heard
before the court on April 18.

The three were named, along with other executives of the bank, in
civil suits filed by ATB on August 2, 1985. They were charged
with damaging the bank. In 1988, the Supreme Court ruled against
the defendants and ordered them to pay what they owed to the
bank, the Post said.

Khunying Lalinthip was the only defendant in that case who was
able to settle debts amounting to Bt300 million of the Bt515
million demanded from her. Others claimed inability to pay the
debt and thus were declared bankrupt.


SUPALAI PUBLIC: Repayment To BT Under Debt Restructuring
--------------------------------------------------------
Supalai Public Company Limited announced yesterday at the Stock
Exchange of Thailand that on March 26 Supalai issued and sold
unsecured debentures and convertible debentures in reference to
the debt restructuring agreement Supalai entered into with Bank
Thai Public Company Limited (BT).

The transaction was made in accordance with the following
details:

i) Repayment of its debt to BT: Supalai has repaid its debts owed
to BT in the amount of Bt219,228,824.48.

ii) Issue and sale of unsecured debentures:

The company has issued and sold the "Supalai Public Company
Limited Unsecured Debentures No. 4 Due 2007" to BT in the number
of 164,357 units at the price of Bt841.2652 each, totaling Bt
138,267,824.48.

iii) Issue and sale of convertible debentures:

The company has issued and sold the "Supalai Public Company
Limited Convertible Debenture No. 5 Due 2001" to BT in the number
of 80,961 units at the price of Bt1,000 totaling of Bt80,961,000.

iiii) Exercise of conversion right. BT exercised its conversion
rights pursuant to all of its convertible debentures specified in
item 3 and such conversion causes BT to acquire ordinary shares
in the number of 3,864,400 shares with the conversion price at
Bt20.95 per shares.


CHRISTIANI & NIELSEN: Posts Bt953.12M Net Loss In 2000
------------------------------------------------------
Christiani & Nielsen (Thai) Public Company Limited (C&N) reported
on Monday at the Stock Exchange of Thailand that the company
incurred a net loss of Bt953.12 million for the year ending
December 31, 2000, as compared to the preceding year's Bt253.98
million.

C&N  also reported that the audited financial statements of
certain overseas subsidiary companies were already included in
the consolidated financial statements, of which the total assets
and total revenues as of and for the year ended December 31, 2000
were approximately Bt1.88 billion and Bt1.976 billion
respectively as opposed to that of 1999, of Bt1.154 billion and
Bt1.232 billion, respectively.

Consolidated loss from operations was shown at Bt984.18 million
in 2000, while the company incurred operations loss of Bt669.73
million for the same year.

The report also said that according to the letter of the Stock
Exchange of Thailand dated January 28, 2000, C&N was still under
delisting consideration.  However, C&N could request the
securities be traded in REHABCO group upon the accomplishment of
the company's capital and debt restructuring plan in accordance
with the guidelines announced by the Stock Exchange of Thailand.

Christiani & Nielsen (Thai) Public Company Limited was
incorporated as a limited company under Thai laws and became a
public limited company under the Public Limited Company Act on
November 26, 1992.  The company operates in Thailand with
principal activity in construction business. The company has
various local and overseas subsidiary companies.

During the period under report, C&N had significant deficit.
C&N's ability to continue their operations depends upon future
operating results and the recovery of Thailand's economic
problems and financial crisis.  However, the financial statements
under report have been prepared under the going-concern basis,
which presumes that the C&N will continue their operations as
going concerns and that the realization of assets and settlement
of liabilities and obligations will occur in the ordinary course
of their businesses, without any expectation of significant
disruption to the ongoing activities.

On September 16, 1996, the report said, the company submitted a
rehabilitation plan to The Stock Exchange of Thailand for the
period of two years ended December 31,1997.  The Rehabilitation
Plan was approved by the Stock Exchange of Thailand on November
19, 1996 and the requisite legal and regulatory actions had been
undertaken in order to put the plan into effect.

As part of the plan, C&N has discontinued the operations of
certain units. The net liabilities and operating results of the
discontinued operation units have been separately shown in the
consolidated balance sheets and earnings statements as at and for
the years ended December 31, 2000 and 1999.


SCANDINAVIAN LEASING: Announces No Dividend Payment
---------------------------------------------------
The Board of Directors of Scandinavian Leasing Public Company
Limited at a meeting held on March 23, 2001 had the following
resolutions:

1. The company has no dividend payment for the operation from
January 1 to December 31, 2000 because of accumulated retained
loss.

2. The annual general meeting of shareholders on 1/2001 should be
held on April 26, 2001 at 4.00 PM at Emperor Room, Pacific City
Club, 28th Floor, Two Pacific Place, 142 Sukhumvit Road,
Klongtoey, Bangkok.

3. The date for closing the company share register for the right
to attend the meeting will be on April 9, 2001 at 12.00 AM until
April 26, 2001.

4. The agenda for the annual general meeting of shareholders
will:

4.1 Certify the minutes of the annual general meeting of
shareholders held on April 25, 2000;

4.2 Certify the company's operational results of 2000 and its
annual report;

4.3 Approval the company's audited financial statements for the
year ended December 31, 2000;

4.4 Consideration of dividend payment for 2000's operational
results;

4.5 Appointment of directors replacing those retiring by rotation
and fix their remuneration for 2001;

4.6 Appointment of company's auditor and fix the auditing fee for
2001;

4.7 Other business.


ITALIAN-THAI: Sells Stakes In Subsidiaries
------------------------------------------
Italian-Thai Development (ITD), according to director and CEO
Premchai Kannasuth, has parted with its stakes in some of its
subsidiaries, Business Day reported Monday. Those sold include
its 50 percent stake in a cement plant in Saraburi, which was
valued at Bt0.5 billion and its 13.34 percent stake in Thai LNG
Power, priced at Bt$46.8 million.

"ITD is selling shares in its subsidiary firms with the intention
of reducing overhead. The cash from the sell-offs will provide
added liquidity for core businesses," Premchai told Business Day.

In the sale process is its 20 percent stake in the Royal Orchid
Sheraton, worth Bt0.5 billion, Premchai said in the report.

The firm is currently working on its debt-restructuring scheme
involving around Bt11 billion debts with principal creditors
Sunwa Bank and the Hong Kong and Shanghai Banking Corporation.
Negotiations with these creditors will be finalized within a
month's time, Business Day reported.

Premchai added that ITD is eyeing on overseas construction
projects. 30 percent of the company's earnings came from its
overseas ventures, while the bigger bulk of 70 percent came from
public construction works projects.


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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