---

            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

                 Monday, April 16, 2001, Vol. 4, No. 74


                               Headlines

A U S T R A L I A

BUILDING INDUSTRY: Calls In Administrators
BUZZLE GROUP: Problems Hurt Apple Brand
HARRIS SCARFE: To Be Sold In Its Entirety
HIH INSURANCE: Creditors May Have To Wait 10 Years
HOSPITALITY GROUP: Enters Liquidation


C H I N A   &   H O N G  K O N G

CENTURY CYBERWORKS: In Talks For Tie-up With TVB
CIL LIMITED: Faces Winding Up Petition
FINE ARTS PRINTING: Hearing Set For Winding Up Petition
GUIZHOU LION: In Voluntary Liquidation
PUBLIC PROSPER: Winding Up Petition Scheduled
TRINICO LIMITED: Face Winding Up Petition


I N D O N E S I A

CHANDRA ASRI: Gov't Debt Restructuring Option Firmed Up
PERUSAHAAN LISTRIK: Existence Relies On Gov't Funding


J A P A N

KANEMATSU CORP: Fulfills Restructuring Exercises
TAMA NEW TOWN: Court OKs Rehabilitation


K O R E A

DAEWOO MOTOR: Sells Research Center Britain
DAEWOO SHIPBUILDING: Posts Profits For First Two Months
GUARANTEE INSURANCE: Fund Infusion Postponed
KOREA EXPRESS: To Get W730-B Aid From Creditors
SHINWOO CORPORATION: First To Be Dealt With CRV


M A L A Y S I A

CELCOM BERHAD: RAM Gives MSF Rating `Developing'
UNITED ENGINEERS: Defers Assets Buy To Four Months


P H I L I P P I N E S

EXPRESS TELECOMMUNICATIONS: To Present Debt Restructuring Plan
PHILIPPINE TELEGRAPH: Nears P7.3-B Debt Restructuring


S I N G A P O R E

POLYMICRO PRECISION: Bid For Approval Of Scheme Arrangement
POLYMICRO PRECISION: Shareholders Profitability Assured
PCI LIMITED: Under Selling Pressure, Analysts Say
THAKRAL CORPORATION: Presents Debt Restructuring Plan


T H A I L A N D

CIRCUIT ELECTRONICS: Restructuring Plans Tied To Thai Lao
MDX Public: Posts Bt2.941-B Net Loss

     -  -  -  -  -  -  -  -  -  -    

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


BUILDING INDUSTRY: Calls In Administrators
------------------------------------------
Building Industry Group Scheme (BIGS) called in administrators on
April 5, 2001, Australasian Business Intelligence reported last
week. Of the affected apprentice bricklayers, carpenters, and
plasterers, 100 of the total 210 have been hired by individual
employers since the week after the collapse.

Five days after the collapse of the group, a protest led by the
Construction, Forestry, Mining & Energy Union flared in the city.

However, the union and the Master Builders' Association (MBA)
will continue negotiations for a merger between the two training
schemes, MBA and BIGS.


BUZZLE GROUP: Problems Hurt Apple Brand
---------------------------------------
Apparently, Buzzle Group receiver KPMG sent letters to paid-up
customers stating that they (customers) have payables due to the
Australian Apple Computer distributor. This has been a blow to
the computer brand, Sydney Morning Herald reported last week.

According to KPMG receiver Scott Kershaw, there was no
confirmation as to how many letters were sent. Many customers
reported that they (the retail customers) have actually paid but
have been listed in the accounting system as debtors. System
problems are to blame.

Kershaw told Herald, "The accounting system has been very
unreliable."  

"They've received it but they don't know which customer to
allocate it to," he added, referring to cash amounting to over $1
million. "It is taking months to match invoices with payments ...
It was the demise of the whole thing."   

Myrna Van Pelt, corporate affairs manager at Apple, further added
that Buzzle recognized this "state of the business systems", and
transactions have to be conducted manually. However, she assures
that this case is an "isolated event" and that Apple will be able
to bounce back from this crisis, as there are already concerns
that it will negatively impact the brand's reputation and market
share.

The Buzzle Group was placed in receivership by Apple Computer,
which appointed KPMG as receiver of the Australian distributor.
Apple claimed receivables from the group, which comprised most of
the group's debts of $30 million.


HARRIS SCARFE: To Be Sold In Its Entirety
-----------------------------------------
With all options on the negotiating table, Hindal Corporate
investment bank, Harris Scarfe's appointed seller, would rather
sell the troubled 35-store retail chain as a group, Reuters
reported late last week, citing the bank's director David Beatty
in an interview with Australian Broadcasting Corp.

In the same interview, Beatty noted that there are interested
parties in the sell-off, notwithstanding the current economic
plight experienced by the retail sector.

Hindal isn't counting on retailers Coles Myer Ltd and David Jones
Ltd to participate in the bidding proceedings. Beatty said, "I
don't think David Jones and Myer would be particularly interested
in Harris Scarfe, they have their own areas to concentrate on and
they'll probably stick to those particular areas and target
markets."  

Early this month, Harris Scarfe called in voluntary
administrators after it found accounting irregularities that
extend back six years, Reuters said. The Australian and New
Zealand Banking Group appointed receivers and managers to the
retail group, which owed the banking group about A$65 million.

Harris Scarge has been up for sale since Wednesday last week.


HIH INSURANCE: Creditors May Have To Wait 10 Years
--------------------------------------------------
KPMG, provisional liquidator of failed HIH Insurance, told Herald
Sun that creditors might have to wait for as long as 10 years
before they can receive final payments from the insurer firm.

According to financial market analysts, HIH's downfall could
snowball into losses estimated between $1.2 billion to $1.6
billion, Sun said.

Concerned with this, David Knott, chairman of Australian
Securities and Investments Commission, suggested that HIH should
be wound up rather than be placed in provision liquidation.

However, Tony McGrath of KPMG noted that the provisional
liquidator is still looking into the feasibility of either plan
with regard to addressing the fate of each of HIH subsidiaries.
He also added that KPMG might just opt to move for an adjournment
on the scheduled hearing on May 10 before the NSW Supreme Court.


HOSPITALITY GROUP: Enters Liquidation
-------------------------------------
Hospitality Group Training (HGT) Victoria has been in liquidation
proceedings since April 5, 2001, with debts of A$350,000, which
include A$150,000 of unpaid taxes, Australasian Business
Intelligence reported. Prior to this, the Victorian Government
had withdrawn financial assistance worth A$500,000.

Since the organization's collapse, the fate of 124 apprentice
chefs is still uncertain.


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


CENTURY CYBERWORKS: In Talks For Tie-up With TVB
------------------------------------------------
Pacific Century CyberWorks (PCCW) (HKSE:0008), through a company
spokesman, confirmed that PCCW has been negotiating with
Television Broadcasts  (TVB) (HKSE:0511) for a possible
partnership as part of PCCW's rescue operations for its troubled
TV unit Network of the World (NOW), Hong Kong IMail reported late
last week.

According to a spokesman for TVB unit Galaxy Satellite
Broadcasting, both companies are negotiating about pay-TV
services. However, both parties will not disclose further details
of the talks.

Alan Wong, a regional media analyst at Indosuez WI Carr
Securities, told IMail, "CyberWorks has aspirations to develop a
significant pay-TV service. Their business has a low penetration
rate but has a lot of infrastructure in place, so a joint venture
with TVB would make a lot of sense."

Wong also added that this partnership, should it succeed, is
expected to "consolidate the industry and strengthen competition
to I-Cable."

TVB is a leading in the free-to-air broadcasting in Hong Kong,
the report said. Its 80,000 hours of Chinese television could be
instrumental in PCCW's plan to repackage NOW and to bolster the
company's pay-TV service in Hong Kong.

Also, PCCW could serve as a strategic partner to TVB for Galaxy,
its pay-TV unit, which TVB plans to launch in 2002.


CIL LIMITED: Faces Winding Up Petition
--------------------------------------
CIL (Nominees) Limited is facing a winding up petition on May 16,
2001 before the High Court of Hong Kong. The petition was filed
with the court on March 8, 2001 by Win Data Limited, situated at
9th Floor, The Bank of East Asia Building, 10 Des Voeux Road
Central, Hong Kong.


FINE ARTS PRINTING: Hearing Set For Winding Up Petition
-------------------------------------------------------
Fine Arts Printing Supplies Company Limited is scheduled for a
winding up petition before the High Court of Hong Kong on May 16,
2001. It was filed on March 6, 2001, by Macau Presensitized
Offset Plates Company Limited located at Estrada Marginal Da Ilha
Verde Edf. Ind. "Ilha Verde" R/C"A-H, Macau.


GUIZHOU LION: In Voluntary Liquidation
--------------------------------------
Lion Teck Chiang Limited has placed its subsidiary, Guizhou Lion
Telecommunication Development Company Limited, in voluntary
administration, AFX reported last week.


PUBLIC PROSPER: Winding Up Petition Scheduled
---------------------------------------------
Public Prosper Limited is going to face a winding up petition
before the High Court of Hong Kong on April 25, 2001 at 10 am.
The petition was filed with the court February 20, 2001, by The
China State Bank Limited of 39-41 Des Voeux Road Central, Hong
Kong.


TRINICO LIMITED: Face Winding Up Petition
-----------------------------------------
The winding up petition for Trinico Limited scheduled for May 16,
2001 before the High Court of Hong Kong. The petition was filed
with the court on March 2, 2001 by petitioner Kincheng Banking
Corporation located at 55 Des Voeux Road Central, Hong Kong.


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


CHANDRA ASRI: Gov't Debt Restructuring Option Firmed Up
-------------------------------------------------------
The Indonesian government has just firmed up its proposition for
a fifteen-year continuance and a 1.5-percent interest rate under
LIBOR to Chandra Asri, IndoExchange reported.

The offer involves a provision, through the Indonesian Bank
Restructuring Agency, of $50 million to the troubled company.
Meanwhile, talks between the government and Marubeni regarding
Chandra Asri's debts of $700 million are underway. The debt deal,
when finalized, will call for the conversion of about $100
million of the total amount of debts into Marubeni shares.

Syafruddin Temenggung, secretary of the Financial Sector Policy
Committee, told IndoExchange, ""If Marubeni refused the proposal,
the government will conduct legal action based on the existing
constitution. Therefore, the government asked to be the creditor
for Chandra Asri."


PERUSAHAAN LISTRIK: Existence Relies On Gov't Funding
-----------------------------------------------------
Loss-making PT Perusahaan Listrik Negara (PLN) has called for the
Indonesian government to act immediately on the company's
corporate finance restructuring before it is due to report its
financial condition by the month's end, IndoExchange reported
last week, citing Eddie Widiono, president director of PLN.

PLN is calling for a conversion of its debts to government
equity, the report said.

If the government will not do as the company asks, PLN would
likely post negative figures at the end of the month, which is
feared to be detrimental to PLN's continued existence.

Widiono explained that its negative report would have adverse
impact such as increasing expenses resulting from loss of
confidence. "For example, PLN will have difficulties buying spare
part with credit, because the supplier will doubt PLN's
capability to pay," he said as quoted by IndoExchange.

PLN has been incurring losses attributed to mounting liabilities
and its failure to compensate production costs. On the average,
PLN earns Rp300/kWh this year, against production cost of
Rp450/kwh.

Its current equity standing is at negative Rp9 trillion, but this
could rise to Rp21 trillion if finance restructuring is put in
place.  


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


KANEMATSU CORP: Fulfills Restructuring Exercises
------------------------------------------------
Kanematsu Corporation (TSE:8020) reported that the trading house
has completed its debt-restructuring program a year short of the
planned completion date, Jiji Press reported, citing company
President Tadashi Kurachi.

The three-year restructuring program involved Y155 billion in
debts and pullouts from loss-making business units.

Kanematsu, according to Kurachi, projects to post consolidated
recurring profit of Y10.5 billion for financial year 2000, and
hopes to double it to as much as Y23 billion in 2003. The company
is also bracing to lower its interest-bearing debt to Y300
billion from Y450 billion within a three-year period. It also
hopes to cut group's sales management costs by Y8 billion.

Kanematsu, which is currently strengthening its medicine and
biotechnology units, plans to boost further existing units
engaged in information technology and food.


TAMA NEW TOWN: Court OKs Rehabilitation
---------------------------------------
The Tokyo District Court approved Thursday last week the
rehabilitation program of Tama New Town Development Center, a
semipublic urban developer in Tokyo, Jiji Press reported, citing
Teikoku Data Bank Limited.

After creditors rejected its proposed rescue plan, Tama New Town
asked for court protection on March 30, through its 51-percent
stakeholder, Tokyo metropolitan government.

The developer, according to credit research firm Teikoku Data,
has total liabilities amounting to Y38.4 billion.

Established in 1988, Tama New Town, which has presently a
negative net value, is one of the entities in the construction
and real estate developing sector that took a blow from Japan's
bubble economy early in the 90s.


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


DAEWOO MOTOR: Sells Research Center Britain
-------------------------------------------
Daewoo Motor Company has sold its Worthing Technical Center in
Britain to Tom Walkinshaw Racing Company, Agence France Presse
(AFP) reported Friday last week, citing Daewoo officials. The
sale contract formally inked Thursday, is considered part of the
South Korean automaker's restructuring exercises, particularly in
its ventures abroad.

"It was the first substantial and meaningful case of
restructuring our overseas operations," Daewoo Motor spokesman
Kim Sung-Su told AFP. Kim did not disclose the sale amount,  
which industry sources estimated at about 5 million pounds.

Daewoo Motor took over Worthing Technical Center when it bought
the center from automobile engineering firm IAD in 1994. It was
in this center that Daewoo developed car models Matiz and Nubira.
The center maintains 500 employees.

Tom Wilkinshaw Racing Company is an automobile engineering firm
in Britain and the owner of Formula 1 racing team Arrows.


DAEWOO SHIPBUILDING: Posts Profits For First Two Months
-------------------------------------------------------
Daewoo Shipbuilding & Marine Engineering Company posted profits
for the first two months of the year, as its shares continue to
gain on a weaker won, Bloomberg reported Friday last week.

"The stock is favored because investors want to snap up the main
gainers from the won's faster-than-expected plunge," Lee Sokje, a
shipbuilding analyst at HSBC Investment Bank Plc in Seoul, said
in the report. Due to the weakening won, Daewoo Shipbuilding's
shares may soar by 25 percent within a year's period. The dollar,
up by 4 percent against the won, will further buoy the
shipbuilder's profit margin.

Daewoo Shipbuilding is an offshoot firm of Daewoo Heavy
Industries Company, which broke down in October last year after
it stumbled into trouble over its debts.


GUARANTEE INSURANCE: Fund Infusion Postponed
--------------------------------------------
According to the Korea Deposit Insurance Corporation (KDIC), the
proposed fund infusion of W700 billion into Seoul Guarantee
Insurance Company might be postponed to the month's end, owing to
an ongoing concern that the infusion, which would use taxpayers'
money, get the approval of Public Funds Management Committee, The
Korea Herald reported Friday last week, citing a KDIC official.

"In addition, a memorandum of understanding should be signed, so
a delay is inevitable," the official told The Herald.

If the W700-billion is approved, Seoul Guarantee will use the
money to defray issued bonds by bankrupt companies and those
retained by investment trust management companies.


KOREA EXPRESS: To Get W730-B Aid From Creditors
-----------------------------------------------
Korea Express Company Limited, which has been placed into court
receivership, was scheduled late last week to receive a creditor-
funded rescue package consisting of financial aid totaling W730
billion, AFX reported, citing a report by Korea Economic Daily.

The package features debt-to-equity swap and debt write-off,
worth W160 billion and W570 billion respectively. The latter
amount came in guarantees provided for parent company Dong Ah
Industrial's debts. This package is expected to reduce the
transportation company's debts to W470 billion from W1.2
trillion.


SHINWOO CORPORATION: First To Be Dealt With CRV
-----------------------------------------------
Shinwoo Corporation, a leather producer, is considering under-
taking a corporate restructuring vehicle (CRV), Asia Pulse
reported late last week, citing Hanvit Bank President Lee Duk-
hoon.

As quoted in the Pulse report, Lee said, "We will ask Arthur
Anderson to conduct due diligence on Shinwoo, which is under a
workout program, starting Friday, looking for foreign investors
who will invest in the CRV."

A corporate restructuring vehicle is "a form of paper company
established with mutual funds which manages the troubled
companies' equity on behalf of creditors. It serves to expedite
the corporate sector restructuring process and relieve problems
associated with multiple creditors participating in the clean-up
of bad companies."


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


CELCOM BERHAD: RAM Gives MSF Rating `Developing'
------------------------------------------------
Celcom Sdn Bhd's multi-structure facility (MSF), tranche 1, 2 and
5 ratings get `developing' from `negative' from Rating Agency
Malaysia Bhd (RAM), AFX reported late last week. Thus, Celcom's
MSF now stands at BBB3(s) and P3(s).

The change of outlook, RAM explained in the AFX report, stems
from the viewpoint that RAM sees slim chances for Celcom to
default debt payments after Celcom Timur Sdn Bhd's programs to
settle its outstanding balance of 70 million ringgit owed from a
100 million ringgit credit facility.

This is based on an earlier agreement, stating that default by
any of Celcom's subsidiaries would cause ripple effect on
Celcom's MSF, the report said.

Celcom Timur's debt payment plan will consist of an initial
payment worth 10 million ringgit with the balance to be paid on
installment of 5 million ringgit each month beginning April 30.

RAM assured that it will keep an eye on this settlement plan
until the balance is fully repaid.


UNITED ENGINEERS: Defers Assets Buy To Four Months
--------------------------------------------------
United Engineers (Malaysia) Bhd (UEM) has decided to defer the
submission of its plan to acquire Renong Berhad assets another
four months, The Star Online reported over the weekend.

UEM, in its announcement last week stated that the company is
still considering certain terms with regard to the proposed
acquisition, not to mention the "timing of the asset realization
programme vis-a-vis the cost of the acquisition in view of the
present market condition."

UEM is expected to acquire from Renong the following assets: a
50.1-percent equity interest in Park May Bhd for RM15.99 million;
and a 38.6-percent stake in Crest Petroleum Bhd for RM74.51
million; the entire issued and paid-up capital of Fleet Group Sdn
Bhd once its restructuring is completed, for RM2.9 billion.

Also included is an 80-percent stake in Amra Resources Sdn Bhd
for RM1.28 billion; and the rights, title, benefit and interest
to and under the redeemable subordinated loan by Prolink to
Renong at its book value as of November 17, 2000 of RM995.6
million.

According to analysts, UEM can still get a "better deal" in the
light of the current market conditions, that's why a review of
the valuation of these assets would be necessitated, The Star
reported.

Renong is selling off these assets as included in its debt-
restructuring program involving debts of over RM20 billion.


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


EXPRESS TELECOMMUNICATIONS: To Present Debt Restructuring Plan
--------------------------------------------------------------
Express Telecommunications Philippines Inc (Extelcom) is firming
up its debt restructuring program, which will be submitted to the
company's board for approval, Philippine Daily Inquirer reported
late last week.

The restructuring program, should it be approved by the company's
board, would involve about P2 billion of the company's debts,
P1.3 billion of which are owed to local creditors and the rest to
foreign creditors.

Meanwhile, negotiations with the Extelcom's creditors have  
resumed and are expected to be finalized by mid-year.

The results of this debt restructuring exercise will determine
the fate of Extelcom's digital cellular phone network project,
which will need a rolling capital of P5 billion to P10 billion,
the report said, citing Extelcom first vice president Felipe
Gozon.

Earlier debt restructuring negotiations called for Bayan
Telecommunications Inc to sell or increase its equity in
Extelcom. However, Bayantel, which wrote off its P6-billion
investment in Extelcom, rejected the proposal.


PHILIPPINE TELEGRAPH: Nears P7.3-B Debt Restructuring
-----------------------------------------------------
Philippine Telegraph and Telephone Corporation (PT&T) is nearing
the completion of its restructuring program involving P7.3
billion in debts, as revisions on the indicative term sheet are  
underway, Business World reported last week. The proposal, which
has yet to be approved both by the creditors and Bangko Sentral,
will call for debt-to-equity conversion and repayment term
extension.

Included in the proposed scheme is a 10-year extension on the
repayment period on half of the total amount of debts. The
proposal is also asking for a five-year grace period on principal
repayments. Serving as collateral to these debts, the report
said, are PT&T's assets listed under a mortgage trust indenture
(MTI).

Loans secured in peso denominations, the plan proposes, will bear
annual interest rates that should not go beyond 13 percent, and
based on the benchmark 91-day Treasury bill rate plus 2 percent.

For dollar-denominated loans, interest rates will not surpass 8
percent and will be computed based on the three-month London
Interbank offered rate plus 2 percent.

The rest of the total debts included in the proposed scheme will
be swapped for equity.

According to Luis Santiago, PT&T's president and chief executive
officer, the old indicative term sheet had to undergo revisions
as required by creditors' advisors. He explained in the Inquirer
report, "We were severely affected by the recent staggering peso
devaluation, and due to the prevailing economic slump and the
delays in the implementation of certain strategic projects of the
company."

The old indicative term sheet in the proposed restructuring plan
negotiated for the conversion of one-third of the total principal
debt into PT&T shares of not exceeding P1 in per share value. It
comes with the buy-back rights provision for PT&T parent company,
Republic Telecommunications Holdings Corp, with an 18-month
period.


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


POLYMICRO PRECISION: Bid For Approval Of Scheme Arrangement
-----------------------------------------------------------
PCI Limited (PCI) announced late last week that its subsidiary,
Polymicro Precision Technology Pte Ltd has proposed to implement
a Scheme of Arrangement between Polymicro and its creditors under
Section 210 of the Companies Act (Cap.50).

Polymicro has appointed KPMG Corporate Finance Pte Ltd to assist
in making an application to the courts for the implementation and
administration of the proposed scheme.

Polymicro is engaged in the business of precision engineering and
in particular, the manufacture of high-end actuator arms and
precision parts for the hard disk drive industry.

Sales for Polymicro's products have deteriorated significantly
since March 2001 with orders sliding drastically by 75 percent as
the hard disk drive industry braces itself for a major
consolidation in the light of weak global demand.

In light of the uncertainties faced by Polymicro, and high
capital investment for future projects, PCI has taken the view
that it is no longer prepared to provide financial support for
Polymicro's operational requirements.

PCI will be making a one-time charge of $37 million to its profit
and loss accounts for the financial year ending 30 June 2001 for
its investment in Polymicro. This comprises $13 million for its
investment in share equity in Polymicro, $19 million in advances
to Polymicro and $5 million in contingent liabilities.

This provision will cause PCI to be unprofitable for the full
financial year ending 30 June 2001. PCI's financial position
still remains strong with a net cash position of $28 million and
no borrowings.

PCI is well positioned to fund all new Electronics Manufacturing
Services (EMS) projects from both existing and new customers and
those projects in the pipeline from ongoing business development
activities.

PCI is able to self-finance planned technology investments to
meet anticipated requirements of new projects.

On Wednesday last week PCI directors requested for suspension of
the trading of the company's securities for the whole day with
immediate effect pending a further announcement to be made later.


POLYMICRO PRECISION: Shareholders Profitability Assured
-------------------------------------------------------
Chuan Hup Holdings Limited, parent company of PCI Limited,
announced that PCI had decided to discontinue providing financial
support to Polymicro Precision Technology Pte Ltd and will be
making a one-time charge of $37 million to its profit and loss
accounts for the financial year ending June 30, 2001 for its
investment in Polymicro.

The company also said that as a result of the $37 million charge
made by its 32.72 percent associate, PCI, the Chuan Hup Group has
to equity account its share of the charge amounting to $12.1
million for the financial year ending June 30, 2001. The equity
accounting of its share of the charge will not have an adverse
effect on the group's cash flow position

The directors expect the company and the group to remain
profitable for the second half of the financial year ending June
30, 2001.

            Strategic View In PCI

On November 9th, 2000, Chuan Hup Holdings Limited announced the
appointment of ING Barings South East Asia Limited as financial
advisor to undertake a strategic review of the company's 32.72
percent shareholding interest in its associated company, PCI
Limited.

With the objective of enhancing the company's shareholders'
value, as well as the long term growth potential of PCI, the
purpose of the strategic review is to identify any potential
strategic partnerships as well as merger or acquisition
opportunities in relation to the company's interest in PCI.

During the period of the strategic review, ING Barings received
interests at various levels from parties interested in potential
strategic investments in PCI.

However, in view of the uncertain market conditions and outlook
of the Electronic Manufacturing Services sector, the company has
decided to defer the immediate pursuit of such interests, as well
as the consideration of other strategic initiatives until such
time when conditions are more favorable.

The directors of the Chun Hup Holdings remain committed to
continuously seek to enhance shareholders' value.


PCI LIMITED: Under Selling Pressure, Analysts Say
-------------------------------------------------
The announcements, both by PCI Limited and parent company Chuan
Hup Holdings, middle of last week regarding a write off of about
$37 million in investments in wholly owned subsidiary Polymicro
Precision Technology, a hard disck drive maker, capped ongoing
speculations about a possible takeover in PCI, Business Times
reported.

An analyst at a local brokerage house said in light of these
developments PCI would be pressed for a sell-off.

"There was so much hype built on it being bought over by a larger
global player. That's why there was such huge interest in this
stock." Late last year, PCI shares rose over $1.50.

As PCI directors had reached a decision to let go of Polymicro,
PCI called in KPMG Corporate Finance as adviser to determine the
fate of the subsidiary.

"We've been continuing to fund Polymicro. Starting in March,
Polymicro's orders dropped drastically by 75 per cent. So when we
reviewed the situation, we decided we would not continue to
provide the funding. Polymicro's business has changed so much
that we have to review our investment," Teo Teck Chuan, CEO of
PCI, explained, adding that it hasn't been determined when PCI's
stake in Polymicro would have to go, since PCI has to wait for
the results of KPMG's study.

"What it means is that we take the full provisions. We expect of
course there will be some balance left, whatever arrangement KPMG
makes. Our direction has always been conservative in this. It
won't be worse than this (a $37 million loss)."

"Basically, their (KPMG's) role is to make sure the shareholders
and creditors of Polymicro have got the best out of the whole
situation. The worst case is if they've got to liquidate it."


THAKRAL CORPORATION: Presents Debt Restructuring Plan
-----------------------------------------------------
Thakral Corporation Limited announced that at a meeting with its
bank creditors on March 29, 2001, Arthur Andersen Associates (S)
Pte Ltd, the company's independent financial advisor (IFA),
represented by Nicky Tan, presented to the bank creditors on
behalf of the company, a proposed debt restructuring plan as a
way for the company to comprehensively restructure its
indebtedness to its bank creditors.

The proposed implementation of the debt restructuring plan will
be by way of a scheme of arrangement under Section 210 of the
Singapore Companies Act (Chapter 50).

The debt restructuring plan will incorporate the following
features:

           Sustainable Long Term Debt

A long term debt level of S$87 million (in addition to local RMB
working capital facilities in China), which has been verified to
be sustainable by an independent financial consultant appointed
by the IFA, will be retained by the Thakral Group after the
restructuring.

            Debt Buy-Back

A total sum of S$35 million, comprising of a cash injection of
S$15 million by the Thakral Family into the company by way of a
convertible subordinated loan and a sum of S$20 million from the
funds of the company, will be set aside for the purpose of a
debt-buy back exercise.

As noted in an earlier announcement on January 31, 2001, the debt
buy-back exercise involves the company calling for a tender, open
to all its bank creditors, wherein each bank creditor may choose
to submit an offer to the company to retire the whole or part of
its debt.

            Cash Distribution

A cash distribution of up to S$35 million from the company's
escrow accounts will be made to the remaining bank creditors
after the debt buy-back has been conducted.

A further cash distribution of up to S$5 million will be made to
the remaining bank creditors from the proceeds of realization of
the remaining non-core assets and any monies which may be
unutilized in the debt buy-back.

        Conversion of Bank Debts to Equity

The remaining bank debts, estimated to be valued at up to S$292
million (subject to the outcome of the debt buy-back exercise),
will be converted to equity at a price of S$0.25 per share.

      Conversion of Family's Subordinated Loan to Equity

The subordinated loan of S$15 million given by the Thakral Family
to partially fund the debt buy-back will be converted to shares
in the company at the conversion price and at the same time as
the conversion of the bank debts into converted shares.

         Elimination of Accumulated Losses

Subject to the necessary regulatory approvals and approval of its
shareholders, the company will effect a capital reduction to
reduce the par value of each of its existing ordinary shares in
its share capital.

The company will then utilize the share premiums arising from the
capital reduction and the debt-equity conversion to offset
against its accumulated losses.

The debt restructuring plan, upon completion, will have a
positive impact on the company's shareholder funds and its net
tangible assets of up to S$307 million.

        Grant of Put Option To Bank Creditors

A put option would be granted by the Thakral Family (via one or
more of the Thakral Family's investment holding companies) to the
bank creditors to put a total of up to S$22 million in value of
the converted shares over a period of two years at the conversion
price for S$7 million and at the conversion price (plus interest)
for S$15 million.

        Grant of Call Option To Thakral Family

The converted shares less the put option shares stated above
shall be held in an escrow account.

The bank creditors shall grant the Thakral Family a call option
to acquire a significant portion of the balance converted shares
at the conversion price plus holding cost, exercisable over a 4-
year period. The remaining converted shares will be released to
the bank creditors over 36 equal installments.

The terms of the scheme are currently being finalized in
consultation with the informal working group, which is comprised
of former members of the working group appointed pursuant to the
Standstill Agreement dated 15 June 2000, which has since expired.

The company will in due course make an application to the High
Court of Singapore to convene a meeting of the creditors of the
company for the purpose of approving the scheme between the
company and its creditors pursuant to section 210 of the
Companies Act (Chapter 50).

Once the requisite approval is obtained from the High Court of
Singapore to convene the Court Meeting, a notice calling for the
Court Meeting will be advertised in the Straits Times and the
Lianhe Zaobao.

It is emphasized that the features outlined above should be
regarded as indicative terms only and may be subject to further
revisions and amendments by the company, its bank creditors and
the High Court of Singapore.

Tan said after the meeting: "The meeting among all the creditor
banks of Thakral went very well and there was a general consensus
that there should be a speedy implementation of the restructuring
proposal. The focus is now on moving ahead with the restructuring
exercise so that the Group can substantially reduce its
indebtedness to its bank creditors to a sustainable level and
concentrate its efforts on growing the businesses. The
restructuring when completed will have a very positive impact on
the company's shareholder funds and its net tangible assets of up
to S$307 million."

Tan further added: "The Thakral Family has shown their continuing
commitment to the company by undertaking to inject additional
funds of S$37 million. The Family will continue to maintain a
significant stake in the company which will be further increased
through a call option to buy back shares from the banks over a
period of four years."


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


CIRCUIT ELECTRONICS: Restructuring Plans Tied To Thai Lao
---------------------------------------------------------
Circuit Electronics Industries (Public) Company Limited (CIRKIT)
has already signed the Debt Restructuring Plan with Thai Lao
Lignite Company Limited (TLL). The summary, as follows:

1) Interest : Fragmented into 3 periods

Period I   : From the default date to April 30, 2000
Period II  : From May 1, 2000 to April 30, 2001 or on the signing
of the Shareholder Agreement, whichever is the earlier
Period III : From May 1, 2001 or on the signing of the
Shareholder Agreement, whichever is the earlier to the expected
Financial Close at December 2002

2) Interest Rate

Period I   : Interest will be accrued at the Promissory Note rate
but not exceed MLR plus 2 percent of KTB rate if exceed MLR plus
2 percent of KTB, use MLR plus 2 percent
Period II  : Interest will be accrued at MLR of KTB rate

3) Interest Payment

Period I   : Accrued Interest for Period I shall be paid at the
first draw down of funds (financial year ending December 2002)
from the project lenders but not later than March 31, 2003.
Period II  : 30 percent of the accrued interest for Period II
shall be paid on May 31, 2001 or on the signing of the
shareholder agreement and receive the fund whichever is the
earlier.
           : The balance of 70 percent of the accrued interest
will be paid at the first draw down but not later than March 31,
2003
Period III : 15 percent of the accrued interest for Period III
shall be paid by quarterly upon complete 3 months from May 1,
2001
           : The balance of 85 percent of the accrued interest
will be paid at the first draw down but not later than March 31,
2003

4) Repayment: Repayment of all loan obligations shall be paid at
the first draw down but not later than March 31, 2003


Description        Interest Rate            Payment Schedule                  
1) Accrued Interest Period I  MLR + 2%     not later than Mar.
31, 2003      

2) Accrued Interest  Period II  -  30% MLR   May 31, 2001                     
                      -  70% MLR      not later than Mar. 31,
2003      
3) Accrued Interest  Period III -  15% MLR  July 31, 2001          
(Quarterly)
                      -  85% MLR    not later than Mar. 31, 2003      
4) Principal Loan                   not later than Mar. 31, 2003      

Note: Term and conditions in this Debt Restructuring Agreement
same as term and conditions in Debt Restructuring Agreement which
TLL signed with Financial Institutes except collateral.

               Management's Opinion

In 1997, the management confided that TLL would have the ability
to pay the loan per scheduled due, as TLL was granted a
concession to develop a lignite mine close to Hongsa, in the Lao
People's Democratic Republic.  

TLL had formed Hongsa Lignite (Lao PDR) Co., Ltd., a 75 percent
subsidiary, to explore and operate lignite mine.  

In 1994, TLL also formed Thai-Lao Power Co, Ltd (TLP), a wholly-
owned subsidiary, for the purpose of implementing the Hongsa
Lignite Private Power Plant Project under a Memorandum of
Understanding between the governments of Thailand and Laos,
whereby Thailand agreed to purchase 1,500 MW of electric power
form Laos.  

TLP would operate a lignite-fired 720 MW power plant to sell
approximately 608 MW via a 25-year Power Purchase Agreement (PPA)
to the Electricity Generating Authority of Thailand (EGAT).  

The Memorandum of Understanding between TLP and EGAT was signed
on September 16, 1996, and the draft of PPA was signed on
December 18, 1997. The PPA between TLP and EGAT would be signed
in the third-fourth quarter of 1998.  

The Power Plant's financing was targeted to reach completion
within 1999. TLP's commercial operation was expected by 2002, and
its internal rate of return was projected at approximately 18
percent at that time. EGAT did not have the policy to revise the
Power Development Plant (PDP) and TLL had just signed the Final
Draft PPA with EGAT, which meant that EGAT still needed to
purchase power from TLL.

The management was confident that TLL could complete the project
and repay the loan as schedule.

The economic crisis in Thailand affected the power demand, and
power usage diminished, leaving Thailand with a power reserve.  

EGAT had revised the Power Development Plan (PDP) to postpone the
power plant construction, to purchase from IPP, SPP and postpone
the purchase of 1,600 MW electricity from Laos to 2006 and 1,700
MW to the year 2008. This was expected to effect in the delay in
development of the TLL's power project.

However, TLL is negotiating with EGAT for the tariff due to
changing in exchange rate system, which TLL expects to sell the
electricity to EGAT in the year 2006 and complete financial
closure in December 2002.  

Upon the declaration of the commercial operation date, the
critical financial closure will become a reality. The proposed
financing structure would indicates TLL will be in a position to
repay the loans.


MDX Public: Posts Bt2.941-B Net Loss
------------------------------------
MDX Public Company Limited reported for the year ended December
31, 2000, the company posted a net loss of Bt2.941 billion, up
from Bt1.7 billion the preceding year.

The company incurred an operations loss of Bt2.919 billion from
total turnover of Bt110.99 million. The company also registered
Bt28.26 million losses from equity.

As of December 31, the company's assets stood at Bt5.124 billion,
and Bt7.156 billion in liabilities.


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