TCRAP_Public/010426.MBX             T R O U B L E D   C O M P A N Y   R E P O R T E R

                        A S I A   P A C I F I C

                 Thursday, April 26, 2001, Vol. 4, No. 82


                               Headlines

A U S T R A L I A

FLETCHER CHALLENGE: Board Changes Announced
FLETCHER CHALLENGE: Appoints New Chief Finance Officer
FLETCHER CHALLENGE: Rubicon To Retain Shares
GOCORP LIMITED: Shareholders Approve Merger Bid
MACQUARIE TELECOMS: Directors Announce Resignation
MACQUARIE TELECOMS: Reaffirms Strategic Direction
MACQUARIE TELECOMS: Strikes CSPA With Telstra
PASMINCO LIMITED: Completes Sale Of Ernest Henry Share


C H I N A   &   H O N G  K O N G

CHINA AEROSPACE: Posts Net Loss Of HK$1.01-B
GUANGDONG BREWERY: Sales Drop 10% To HK$613.89-M
GUANGDONG INVESTMENTS: Net Losses Cut To HK$1.35-B
GUANGDONG TANNERY: Net Losses Balloon To HK$84.55-M
PEARL ORIENTAL: Net Loss Burgeon To HK$1.11-B


I N D O N E S I A

AGRO RESOURCES: Enters Merger Deal With Inti Gerakmaju
ASURANSI JIWA: Police To Probe Indonesian Partner
IVO MAS: Merges With Satya Kisma


J A P A N

CRAYFISH COMPANY: Independent Auditors Resign
CRAYFISH COMPANY: No Plan To Dismiss Prez From Post
DAIEI INC: Operating Revenue Drops To Y1.98-Trillion
ITOCHU CORP: Rating Under Review, Moody's Says
MARUBENI CORP: Moody's Cuts Rating To `Negative'
NOMURA IBJ: Shut Down Inevitable


K O R E A

HYUNDAI ENGINEERING: Cancellation Of Stakes Possible
HYUNDAI ENGINEERING: Foreign Creditors Sought
HYUNDAI INVESTMENT: Gov't To Clinch Talks By June's End
UNION STEEL: Heads For Delisting


M A L A Y S I A

BESCORP INDUSTRIES: MoU With Hua Yang Ends
GOLDEN APPROACH: Court Adjourns Motion For Stay
MALAYSIAN TOBACCO: Asks KLSE For Extension
MAN YAU: SC Approves Restructuring Bid
NCK CORPORATION: Announces Appointment Of SAs
NCK CORPORATION: Special Administrators Appointed


P H I L I P P I N E S

NATIONAL BANK: Gov't Asks WB To Extend Deadline
NATIONAL STEEL: Allengoal Lease Bid Gets Backing


S I N G A P O R E

ASCOTT GROUP: Divests Gold Course In China


T H A I L A N D

RAIMON LAND: Construction Unit Reduces Capital


     -  -  -  -  -  -  -  -  -  -

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A U S T R A L I A
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FLETCHER CHALLENGE: Board Changes Announced
-------------------------------------------
Fletcher Challenge Forests Limited, formerly called Fletcher
Challenge Limited, announced changes to its Board and auditors.

Following completion of the separation of the Fletcher Challenge
Group, Roderick Deane, Paul Baines, Hugh Fletcher and Kerrin
Vautier have resigned from the Board.

Rodger Fisher, Stephen Hurley, Warren Larsen, Terry McFadgen
(Chief Executive Officer) and Michael Walls have been appointed
to the Board. These appointments were initially announced in the
Forests Division Information Memorandum issued during the Group
separation process. Michael Andrews and Sir Dryden Spring remain
members of the Board with Sir Dryden taking over the
chairmanship from Roderick Deane.

Since the early 1980s, owing to the size and diversity of the
Fletcher Challenge Group, KPMG and PricewaterhouseCoopers have
been joint auditors. However, following completion of the
separation, the Board has decided the ongoing audit of the
smaller entity comprising only the Forests business will be
carried out by PricewaterhouseCoopers and accordingly, KPMG has
resigned as joint auditor.

KPMG has been appointed auditor of the two new companies which
emerged from the Fletcher Challenge separation, Fletcher
Building Limited and Rubicon Limited.

Directors' Background

Rodger Fisher - (FCIS)

Fisher is a professional business consultant. Prior to this he
was the Managing Director of Owens Group Limited between 1987
and 1999. He is Chairman of the Civil Aviation Authority, the
Aviation Security Service, and The Blues Franchise Limited.
Fisher is Deputy Chairman of WEL Energy Group Limited and a
Director of the Auckland Rugby Football Union, the Eden Park
Trust Board of Control and Waste Management (NZ) Limited. Mr
Fisher is a Fellow of the Chartered Institute of Secretaries,
the Chartered Institute of Transport, the Institute of Directors
and the New Zealand Institute of Management.

Stephen Hurley - (BA), (MBA) (HONS) (HARVARD)

Hurley has been an investor in the global forest products
industry for over 25 years. He is the Founder, Chairman and
Chief Executive of Xylem Investments, Inc, an international
forestry investment firm based in Boston, Massachusetts, Prior
to founding Xylem Investments, Inc in 1994, Hurley was
Principal, Director and Investment Committee Member of Resource
Investments, Inc (RII - now know as UBS Brinson Resource
Investments), Hurley was previously a fund manager at Fidelity
Investments, and prior to that he was a Vice President of JP
Morgan Investment Management, Inc. Hurley is a member of the
Association of Investment Management and Research, the New York
Society of Security Analysts and the New York Forests Products
Analysts Group.

Warren Larsen - (MAGSC) (HONS), (BBS), (CA)

Larsen is the Chief Executive of the New Zealand Dairy Board,
having held that appointment since 1992. He previously managed
New Zealand Dairy Board's Protein Division, until his
appointment as Chief Executive in 1992. He was Chief Executive
of Bay Milk Products until 1991, and received the New Zealand
Dairy Industry Fellowship Award in 1985. Larsen is a Director of
PDL Holdings Limited and MPH (New Zealand) Limited.

Terry McFadgen - (LLB) (HONS) (AUCKLAND), (LLM) (HARVARD)

McFadgen was appointed Chief Executive of Fletcher Challenge
Forests in October 2000. He was previously Chief Executive of
Fletcher Challenge Building, a position to which he was
appointed in 1996. McFadgen has held the positions of Commercial
Director of the Construction and Property Division, Fletcher
Challenge Limited, Chief Executive Officer of Jennings Group
Limited and he also headed the Fletcher Challenge Group's
Executive Offices Department. McFadgen was, until 1990, a senior
partner at Simpson Grierson in Auckland and has worked with
international law firms in New York and London.

Michael Walls - (BA), (LLB) (VUW), (LLM) (LONDON)

Walls is a business consultant. He was previously the Managing
Director, Investment Banking, for BZW New Zealand, and then for
its successor, ABN AMRO New Zealand, from 1997 to 2000. Prior to
that Walls was a commercial lawyer at Chapman Tripp, where he
was a partner from 1972 until 1996 specializing in mergers and
acquisitions, international finance and corporate law. Walls is
a former Chairman of Directors of BHP NZ Steel Holdings Limited,
and a former Chairman of Directors of the listed Independent
Press Communications Limited (now Wilson & Horton Holdings
Limited). In addition, he has been a Director of a number of
unlisted companies. He is the Chairman of the Board of the New
Zealand Institute of Economic Research.


FLETCHER CHALLENGE: Appoints New Chief Finance Officer
------------------------------------------------------
The CEO of Fletcher Challenge Forests Limited, Terry McFadgen,
today announced that John Dell has been appointed Chief
Financial Officer for Fletcher Challenge Forests Limited.

The appointment comes as part of the reorganization of Fletcher
Challenge Forests after the separation of the Fletcher Challenge
Group.

"John is a welcome addition to the senior management team at
Fletcher Challenge Forests Limited," said McFadgen. "He brings
strong technical skills and solid experience in a public company
environment, and I look forward to his contribution."

John Dell's most recent role was as CFO for Air New Zealand. He
had a number of financial roles with Air New Zealand after his
appointment as Group Internal Auditor in 1994, including General
Manager, Finance and Group Financial Controller. Prior to that
he was a Senior Audit Manager for KPMG based in Wellington,
Melbourne, Zurich, and New York.


FLETCHER CHALLENGE: Rubicon To Retain Shares
--------------------------------------------
Rubicon Limited has elected not to exercise its right to offer
up to 117 million Fletcher Challenge Forests Preference Shares
to Fletcher Building Limited.

As part of the transactions giving rise to the separation of the
Fletcher Challenge Group, Rubicon was granted an option by
Fletcher Building Limited to put to Fletcher Building Limited at
a price of $0.25 per share up to 117 million of the 267 million
Fletcher Challenge Forests Preference Shares acquired by Rubicon
as part of the sub-underwriting arrangements entered into in
connection with the Fletcher Challenge Forests rights issues
completed in December 2000. That option was available to Rubicon
up to April 22, 2001.

Rubicon continues to hold 492 million Fletcher Challenge Forests
shares representing approximately 17.6 percent of Fletcher
Challenge Forests Limited's issued share capital.  


GOCORP LIMITED: Shareholders Approve Merger Bid
-----------------------------------------------
At an Extraordinary General Meeting held on the Gold Coast
Tuesday, shareholders voted on the proposed merger of GOCORP's
operations with those of Lasseters Casino Pty Limited. The
resolutions voted on at the meeting were carried as follows:

Motion 1 - In consideration for the transfer to the company of
all the issued shares in Lasseters Casino Pty Limited, the
company allot and issue to and in favour of Lasseters Holdings
Limited a total of 760,000,000 fully paid ordinary shares and
100,130,000 options in the issued capital of the company.

Motion 2 - Appointment of Data Jaya JB Tan as a Director of the
Company.

Motion 3 - Appointment of Peter Bridge as a Director of the
Company.

Motion 4 - Appointment of Kamal YP Tan as a Director of the
Company.

Motion 5 - Appointment of Tajuddin JH Tan as a Director of the
Company.

Motion 6 - Appointment of Kuan Peng Soon as a Director of the
Company.

Motion 7 - Appointment of Fred Finch as a Director of the
Company.

Motion 8 - Appointment of Christopher Cullen as a Director of
the Company.

Motion 9 - Appointment of John Walton as a Director of the
Company.

Motion 10 - Allotment and Issue of 500,000 options in the
Company to Christopher Cullen.

Motion 11 - Allotment and Issue of 500,000 options in the
Company to John Walton.

Motion 12 - Allotment and Issue of 1,000,000 options in the
Company to Peter Bridge.

Motion 13 - Allotment and Issue of 500,000 options in the
Company to Fred Finch.

Motion 14 - Consolidation of issued capital at a ratio of one
share for every ten shares currently on issue.

The consolidation of capital, although approved by shareholders,
will not occur until such time as the transaction has received
regulatory approval.

Motion 15 - Change its name to "Lasseters Corporation Limited".

Resignation Of Director

In accordance with the Share Sale & Subscription Agreement  
Appleby tended his resignation as a director of the company. The
Board accepted Appleby's resignation and thanked him for his
efforts over the last 2 years and wish him well in any future
endeavor.


MACQUARIE TELECOMS: Directors Announce Resignation
--------------------------------------------------
The independent directors of Macquarie Corporate
Telecommunications L L'Huillier, A Charles and G Wild will
resign, effective midnight Friday May 4, 2001.

The resignations are due to fundamental differences as to
strategic direction and priorities between the independent
directors, and the executive directors,  D Tudehope (CEO) and A
Tudehope (COO) who collectively control approximately 62 percent
of the issued capital of the company.


MACQUARIE TELECOMS: Reaffirms Strategic Direction
-------------------------------------------------
Macquarie Corporate Telecommunications expressed its
disappointment in today's announcement by directors Leon
L'Huillier, Arthur Charles and Geoff Wild, they intend to resign
from the Board, effective May 4, 2001.

Macquarie will appoint new non-executive directors, with the
assistance of Macquarie's financial adviser Allco Fell, recently
retained by the company to provide general financial advice.

While differences of views on strategic directions are
respected, Macquarie directors David Tudehope and Aidan Tudehope
said they remain confident in the company's current business
model and are committed to its long-term strategic direction.

The strategic direction, which was communicated to shareholders
by the Board at the AGM in November 2000, focuses on Macquarie's
Next Generation Integrated Carrier strategy. The four key
initiatives in that strategy are as follows:

* Expansion of the Macquarie Data Network;

* Establishment of a state-of-the-art data center, which was
launched in Sydney in December 2000;

* Establishment of a business unit to target government and not-
for-profit accounts; and

* Expansion of the company's business into the Singapore market.

The executive directors reiterate their confidence in this
strategy and will remain focused on providing innovative
services for customers and generating value for all
shareholders.


MACQUARIE TELECOMS: Strikes CSPA With Telstra
---------------------------------------------
Australian carrier Macquarie Corporate Telecommunications
(ASX:MAQ) today announced that it has entered into a Carriage
Service Provider Agreement (CSPA) with Telstra Corporation
Limited that formalizes the terms and conditions by which
Macquarie acquires most of its telecommunications services from
Telstra.

Macquarie has formalized the terms of the commercial
relationship with its largest supplier, which will provide
operational benefits to Macquarie, including the alignment of
the billing cycles of the two companies. Macquarie has also
reached a settlement of long-standing commercial disputes with
Telstra related to billing and account reconciliation issues.

The Telstra agreements have been reached after lengthy
negotiations and address two important issues facing the
company:

* The agreements resolve a majority of the carrier disputes,
which totaled $19.1 million as per note 18 in the company's
accounts for the financial year ending June 30, 2000.

* The agreements enable Macquarie to implement billing and
account reconciliation system changes which will remove the
cause of a mismatch across accounting periods between Macquarie
billings and charges from Telstra in respect of those billings.
The company previously advised it was working with its auditors
Ernst & Young on a systems review, and has received preliminary
analysis from Ernst & Young dated April 22, 2001, which
indicates a mismatch has existed in the accounting system. This
mismatch has not affected the accuracy of the billings to
Macquarie customers.

Macquarie previously made an accounting provision for the
resolution of disputes and the settlement of this dispute has
allowed the release of approximately $2 million from the
provision in the six-month period ending June 30, 2001. This
will be offset by the negative effect on EBITDA of correcting
the mismatches referred to above and which amount to
approximately $6 million.

The net effect of both these non-recurring adjustments is
approximately $4 million.

In March, guidance was provided by the company that estimated an
EBITDA loss of between $6.5 million and $10 million in the six-
month period ending June 30, 2001.

The one-off adjustments referred to above have the effect of
increasing the estimated EBITDA loss for the six-month period to
an amount of between $10.5 million and $14 million.

The adjustments are non-recurring and do not affect the ongoing
operating results of the company.

These one-off adjustments would have been treated as abnormal
items prior to recent changes to the accounting standards.


PASMINCO LIMITED: Completes Sale Of Ernest Henry Share
------------------------------------------------------
The sale of Pasminco Limited's 49 percent interest in the Ernest
Henry copper-gold mine in Queensland to MIM Holdings Limited was
completed today.

The initial payment of $115 million to Pasminco, will be applied
to retire debt. A further interest-bearing component of $35
million representing the balance of the $150-million sale price,
will be repayable over nine years.

The sale completes the disposal of the non-zinc assets acquired
by Pasminco through the takeover of Savage Resources Limited in
1999.

That process realized a total of $247 million, after taking into
account the $33 million Pasminco has received to date via loan
repayments from Ernest Henry Mine and the $69 million received
for the coal assets sold in July 1999.

Pasminco announced on January 15 it had reached an agreement to
sell its share to Aquila Resources Limited. However, that
agreement was subject to the non-exercise of the pre-emptive
right of MIM.

As a result of the MIM decision to acquire Ernest Henry Mine,
Pasminco paid a break fee of $3 million to Aquila on April 11.


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C H I N A   &   H O N G  K O N G
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CHINA AEROSPACE: Posts Net Loss Of HK$1.01-B
--------------------------------------------
China Aerospace International Holdings' net loss for the year
ended December 31 swelled to HK$1.01 billion from a net loss of
HK$383.96 million posted in the preceding year, South China
Morning Post reported Tuesday.

"The net loss was mainly attributable to the one-off provision
against its securities investment in Asia Satellite," executive
director Wang Yanguang said, adding that the company acquired in
1997 a 14.17 percent interest in Asia Satellite. The provision
against this investment reached HK$583.21 million, the Morning
Post report said

Turnover stood, at the period's end, at HK$1.06 billion,
dropping 17 percent from HK$1.28 billion in 1999

China Aerospace is engaged in the manufacturing of high-
technology products such as consumer electronics, computer
software engineering and digital satellite broadcasting
equipment.


GUANGDONG BREWERY: Sales Drop 10% To HK$613.89-M
--------------------------------------------------
The 72-percent Guangdong Investments-controlled Guangdong
Brewery Holdings sold only 171,000 tons of beer during the year
2000, registering a drop of 10 percent in revenues to HK$613.89
million from HK$682.45 million in 1999, South China Morning Post
reported Tuesday.

The brewer's net profit at the end of the year stood at HK$10.24
million, plunging around 80 percent from HK52.7 million in 1999,
which the report said was due to a HK$42-million provision for
the withdrawal from an associate.


GUANGDONG INVESTMENTS: Net Losses Cut To HK$1.35-B
--------------------------------------------------
Guangdong Investments Limited (GDI) has cut its net losses to
HK$1.356 billion during the year ended December 31, from
HK$2.377 billion in the preceding year, South China Morning Post
reported Tuesday. The company attributed the dramatic drop in
losses to the reduced provisions for operations from HK$2.34
billion in 1999 to HK$1.37 billion last year.  

GDI's turnover at the end of the period stood at HK$4.948
billion, as opposed to the preceding year's HK$5.359 billion,
while losses per share dropped 43 percent to HK$0.5444 from
HK$0.9574, the report said.

GDI's net assets, moreover, at the end of the period climbed to
HK$8.51 billion from HK$4.5 billion recorded in 1999.

In December, GDI wrapped up its financial restructuring with 81
percent interest in GH Water Supply (Holdings) and US$20 million
of infused capital from the Guangdong provincial government,
Morning Post report said.

According to GDI Chairman Li Wenyen, the company is going to
fasttrack its disposal program of non-core assets, including 20
losing businesses, to raise the sum of HK$3 billion so as to
fulfill its debt obligations, which still amount to HK$4.5
billion.


GUANGDONG TANNERY: Net Losses Balloon To HK$84.55-M
---------------------------------------------------
Guangdong Tannery, 71.56-percent owned by Guangdong Investments,
posted for the year ended December 31 net losses of HK$84.55
million, notwithstanding a turnover rising to HK$721.14 million,
South China Morning Post reported Tuesday. Moreover, the
recorded net loss was weighed down by provisions against
impairment of trademark, trade receivables, inventory,
revaluation deficits of properties, and impairment goodwill in a
subsidiary, all amounting to HK$111 million.


PEARL ORIENTAL: Net Loss Burgeon To HK$1.11-B
---------------------------------------------
Pearl Oriental Cyberforce Limited posted a net loss for the year
ended December 31 a net loss of HK$1.11 billion ballooning from
HK$747.5 million net loss recorded in the previous year, Asian
Wall Street Journal reported Tuesday. The figure was attributed
to provisions amounting to HK$868.9 million against devaluated
properties, apart from the "drastic continuous plunge of the
market prices of telecom services."


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I N D O N E S I A
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AGRO RESOURCES: Enters Merger Deal With Inti Gerakmaju
------------------------------------------------------
Golden Agri-Resources Ltd (GAR) announced that GAR's Jakarta
Stock Exchange-listed subsidiary PT Sinar Mas Agro Resources &
Technology Tbk (SMART), has entered into an agreement to acquire
all of the assets and undertaking of its associated company, PT
Inti Gerakmaju (Inti Gerakmaju) through a merger between SMART
and Inti Gerakmaju.

The Merger

The Merger was approved on December 29, 2000 at an Extraordinary
General Stockholders' Meeting (EGSM) of SMART by the requisite
three-fourths majority of the SMART stockholders.

At a separate EGSM held by Inti Gerakmaju, the Merger was
approved by the requisite three-fourths majority of Inti
Gerakmaju stockholders.

The Merger is subject to the final approval of the Capital
Investment Coordinating Board and Ministry of Justice and Human
Rights of the Republic of Indonesia.

SMART currently holds, pre-merger, 49 percent of the issued
shares of Inti Gerakmaju. The balance 51 percent of the issued
shares are held by Arthur Tahya, as nominee of the Widjaja
family. Upon completion of the merger, Inti Gerakmaju will
dissolve without prior liquidation and its entire undertaking,
that is, its operations, assets and liabilities, will vest in
SMART, which will be the surviving entity of the merger. The
combined operations of Inti Gerakmaju and SMART will, post-
merger, be carried on under SMART.

The composition of the Board of Directors and the Board of
Commissioners of SMART will, post-merger, remain unchanged.

SMART will pay for its acquisition of Inti Gerakmaju's
undertaking through the Merger by issuing in favor of Arthur
Tahya 9,988,000 new shares in SMART (the "Consideration
Shares").

The number and value of the Consideration Shares to be issued
was determined based on:

(i) The closing price of SMART shares on the Jakarta Stock
Exchange as of August 31, 2000 (which was Rp3,000 per share);

(ii) The audited financial statements of SMART as of August 31,
2000; and

(iii) the audited financial statements of Inti Gerakmaju as of  
August 31, 2000.

In connection with the Merger, SMART's immediate holding company
PT Purimas Sasmita intends to acquire further SMART shares from
the open market, to ensure that it will continue to hold at
least 51 percent of SMART's issued ordinary share capital.


Rationale for the Merger

Inti Gerakmaju has been involved in the business of oil palm and
hybrid coconut plantations since its incorporation in 1988. It
presently owns a plantation area of 10,000 hectares in South
Kalimantan, of which 4,300 hectares have been planted comprising
2,600 hectares of oil palm and 1,700 hectares of hybrid
coconuts.

SMART carries on a vertically-integrated palm oil business
covering the development of oil palm plantations (with a planted
hectarage of over 90,000 hectares as at August 2000), processing
of fresh fruit bunches (FFB) into crude palm oil (CPO) and palm
kernel oil (PKO), refinery operations and the production and
sale of palm oil-based products including branded and unbranded
cooking oil, margarine, stearine and palm fatty acid distillate.
SMART also produces shortening and specialty fats under various
brand names for industrial purposes.

The merger is in line with GAR's plans to reduce SMART's
dependence on external sources for its CPO requirements, given
Inti Gerakmaju's current annual production of 11,004,192 tonnes
per annum.

Currently, SMART needs to source part of its CPO requirements
from the open market, the prices of which fluctuate according to
global demand. CPO is a major raw material in the consumer
edible oils manufactured by SMART.

SMART's share of the branded cooking and edible oils market is
in excess of 36.5 percent. Its main brands include "Filma",
"Kunci Mas", "Palmboom" and "Menara".

The merger is also in line with SMART's corporate strategy of

(i) continuously increasing efficiency by keeping costs low
through having vertically-integrated operations comprising
plantations, CPO mills and refinery facilities; and

(ii) continuing to increase CPO production capacity through
expansion of oil palm plantations by utilizing undeveloped land
resources and acquisitions of new areas or existing plantations,
to take advantage of expected growth in the demand for CPO and
palm oil-based products both in Indonesia and the international
markets.

Financial impact

The merger is not expected to have a material impact on the net
tangible assets per share or earnings per share of the company
for the current financial year.

Interests of directors and substantial shareholders

All the directors of GAR who are members of the Widjaja family
have an indirect interest in the above transaction, as Arthur
Tahya is a nominee for the Widjaja family. Consequently, the
Merger is subject to, and will be carried out in accordance
with, the laws of the Republic of Indonesia governing
transactions of a publicly-listed company involving interested
parties.

The Widjaja Family Master Trust (2), a substantial shareholder
of GAR, would have an interest in the above transaction if and
to the extent it has any interest in Arthur Tahya.


ASURANSI JIWA: Police To Probe Indonesian Partner
-------------------------------------------------
The Indonesian police has decided to pursue its investigation on
Manulife partner, Suyanto Gondokusumo, originally the defendant
in a criminal complaint filed in November by a suspicious
British Virgin Islands-registered Roman Gold Assets Limited,
concerning the government-run sale of shares of PT Asuransi Jiwa
Manulife Indonesia, Asian Wall Street Journal reported Sunday.

The sale of shares took place in October last year, wherein
Canadian insurer Manulife Financial bought shares of its
Indonesian unit , originally held by PT Dharmala Sakti
Sejahtera, for Rp170 billion augmenting its stake to 91 percent
from 51 percent.

However, a month later, Roman Gold contested the result, as it
claimed to have bought the same shares from a company based in
Western Samoa for $50 million, a week before it was sold off to
parent Manulife. Roman Gold further stated that the company from
which it bought the shares had a special power of attorney over
the shares signed by Suyanto himself.

According to the allegations of Manulife stated in a complaint,
the document was "falsely backdated", the Journal report said,
saying that Suyanto connived with Roman Gold to block the stake
purchase by Manulife.

With the intense lobbying by Manulife, the Canadian government,
the World Bank and the International Monetary Fund, the
Indonesian police last week pinpointed Suyanto as the prime
suspect in the fraudulent transaction, along with Roman Gold
Director Haryono Winarta.


IVO MAS: Merges With Satya Kisma
--------------------------------
Golden Agri-Resources Ltd (GAR) has announced that the
stockholders of GAR's Jakarta Stock Exchange-listed subsidiary,
PT Sinar Mas Agro Resources & Technology Tbk (SMART), has
approved the merger of its subsidiaries, PT Ivo Mas Exim and PT
Satya Kisma Usaha.

The Merger

The Merger was also approved on December 29, 2000 at an
Extraordinary General Stockholders' Meeting of Ivo Mas. The
Merger is now subject to the final approval of the Capital
Investment Coordinating Board and Ministry of Justice and Human
Rights of the Republic of Indonesia.

SMART's effective interest in Ivo Mas (both direct and indirect)
is 78.4 percent.

SMART currently holds directly 56.8 percent of the issued shares
of Ivo Mas. The remaining 43.2 percent of the issued shares are
held by PT Tapian Nadenggan (Tapian), another subsidiary of
SMART. Ivo Mas, in turn, directly holds 99.97 percent of the
issued shares of Satya Kisma.

Upon completion of the Merger, Ivo Mas will dissolve without
prior liquidation and its entire undertaking, that is, its
operations, assets and liabilities, will vest in Satya Kisma,
who will be the surviving entity of the Merger.

The composition of the Board of Directors and the Board of
Commissioners of Satya Kisma will, post-merger, remain
unchanged.

Rationale for the Merger

The principal activity of Ivo Mas and Satya Kisma is to own and
develop oil palm plantations.

The Merger is part of the internal restructuring exercise to
provide for a more efficient structure within the Group, by
eliminating an intermediate holding company, i.e. Ivo Mas. The
merger and restructuring does not involve any issue of shares or
transfer of assets out of the SMART group.

Financial impact

The Merger is not expected to have a material impact on the net
tangible assets per share or earnings per share of the Company
for the current financial year.

About Golden Agri-Resources

Listed on the Singapore Exchange in 1999, Golden Agri-Resources
("GAR") is one of the largest private owners of palm oil
plantations in the world. GAR's operations are located in
Indonesia. Its turnover for the 6 months ended 30th June 2000
was US$200 million.

GAR holds rights to land totaling over 500,000 hectares and
operates 16 palm-oil processing mills, two refineries and three
kernel crushing mills.

It's primary activities include cultivating and harvesting oil
palm trees, collecting fresh fruit bunches and processing these
into crude palm oil (CPO) and palm kernel and refining CPO into
value-added products such as cooking oils, margarine and
shortening.

GAR's plantations are mainly located on the islands of Sumatra
and Kalimantan.

GAR is 55 percent owned by SGX listed Asia Food & Properties Ltd
(AFP), an investment holding company with core businesses in
agri-resources, food and property. Listed on the SGX in 1997,
AFP's principal operations are located in Indonesia, China,
Singapore and Malaysia. The AFP Group of Companies employs more
than 60,000 people with strong local, regional and international
knowledge and experience.

AFP's turnover for the 6 months ended June 30, 2000 was S$700
million.


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J A P A N
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CRAYFISH COMPANY: Independent Auditors Resign
---------------------------------------------
Chuo Aoyama Audit Corporation has resigned as the independent
auditors of Crayfish Company, Asian Wall Street Journal reported
yesterday. Chuo Aoyama, according to the report, cited
management problems as the reason behind the move.

Chuo Aoyama pointed out the resignation of Crayfish's statutory
auditors over a compensation demand of Y2 million for the
Crayfish President Isao Matsushima's alleged violation of his
fiduciary duties. The auditors, in addition, also raised their
concern about Hikari Tsushin's demand to relieve Matsushima from
his post.


CRAYFISH COMPANY: No Plan To Dismiss Prez From Post
---------------------------------------------------
Crayfish Company announced Tuesday that it will not dismiss Isao
Matsushima, the company president, from his post, as opposed to
the demand of Crayfish's biggest shareholder Hikari Tsushin
Incorporated, Asian Wall Street Journal reported Tuesday. The
company will also start scouting for candidates for the board.


DAIEI INC: Operating Revenue Drops To Y1.98-Trillion
----------------------------------------------------
The operating revenue of Daiei Incorporated, the debt-burdened
supermarket operator, dropped below the Y2-trillion mark for the
first time in 10 years. Daiei posted Y1.98 trillion for the
financial year 2000, while it made a return to group
profitability, a first in four years, registering consolidated
net profit of Y45.89 billion, Japan Times Online reported
yesterday.

In fiscal year 1999, the group recorded a loss of Y21.94
billion.

The revenue slump was attributed to the sluggish sales
performance and the shut down of loss-making stores, included in
the three-year restructuring plan.

Daiei, for the current year, expects to post a net profit of Y19
billion on operating revenue of Y2.6 trillion.


ITOCHU CORP: Rating Under Review, Moody's Says
----------------------------------------------
Moody's Investors Service placed Itochu Corporation's Ba3 issuer
rating and senior unsecured debt rating under review for
possible downgrade. Long-term debt ratings assigned to notes
issued by Itochu's subsidiaries were also placed under review.

The rating action reflects Moody's concerns over Itochu's long-
term franchise under pressure and the firm's thin economic
capitalization, which remains susceptible to adverse external
developments.

The rating agency said Itochu has been engaged in rather
aggressive financial and operational restructuring plans in the
recent years, including substantial debt reduction and
reorganization of its business investment portfolio to achieve
better returns.

Reflecting the firm's relatively high risk appetite in the past,
Itochu has incurred massive special losses in recent years that
far exceeded its operating profits. This left the firm's
capitalization seriously eroded, although successful realization
of capital gains from sales of investment assets substantially
moderated the impact of such losses.

In response, Itochu management has adopted stricter internal
risk control policies, which Moody's welcomes as a necessary
step.

Despite some positive developments, however, Moody's remains
concerned about Itochu's yet-to-be-stabilized financial
fundamentals, characterized by high leverage, low economic
capital, thinning protection alternatives such as capital gains,
and still large real estate exposure.

Moody's is also concerned that Japan's market and regulatory
developments may lead to behavioral change by banks, Itochu's
largest creditors, and may unfavorably affect Itochu's future
funding costs.

Itochu recently announced a new strategic management plan, which
will be closely reviewed by Moody's.

Moody's assessment of Itochu's ability to generate sustainable
profits and replenish its economic capital will become an
important rating element. Moody's will also monitor the firm's
liquidity profile and funding strategies.

The following ratings were placed under review for possible
downgrade:

Itochu Corporation - the Ba3 issuer rating, and the Ba3 long-
term senior unsecured debt rating

Itochu International - the B1 long-term senior unsecured debt
rating

Itochu Finance (Europe) plc - the Ba1 long-term senior unsecured
debt rating


MARUBENI CORP: Moody's Cuts Rating To `Negative'
------------------------------------------------
Moody's Investors Service downgraded Marubeni Corporation's
rating outlook to negative from stable, Japan Times Online
reported yesterday.

According to Moody's, the rating change came as a result of
concerns that Marubeni's "long-term franchise" may be weighted
down by "harsh competition and rising financial pressure."

"Structural changes within Japan's capital market, including
regulatory developments surrounding banks, may affect Marubeni's
funding condition over time, and it may result in higher funding
costs," Moody's said.


NOMURA IBJ: Shut Down Inevitable
--------------------------------
Nomura IBJ Global Investment Advisors Incorporated, a New York
money-management joint venture of Nomura Securities Company and
Mizuho Holdings Incorporated, is going to fold up this year,
Asian Wall Street Journal reported Tuesday.

The New York joint venture employs 40 people.

Nomura spokesman Yasuo Kashiwagi told Journal, "Circumstances
have changed since the joint venture was set up. Both partners
have agreed to close the company down."

Once the closure takes effect, this will be second joint venture
of Nomura Securities and Mizuho Holdings to be axed, a London
derivatives venture being the first.


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


HYUNDAI ENGINEERING: Cancellation Of Stakes Possible
----------------------------------------------------
Shares owned by minor stockholders of Hyundai Engineering and
Construction (HDEC) may be canceled in part, as creditors of the
beleaguered construction firm are considering the possibility of
such a move, The Digital Chosun reported Tuesday, citing an
official at the Financial Supervisory Service (FSS). However,
the creditors are studying the reduction ratio, which will be
finalized by the HDEC board at the April 28 meeting.

According to reports, the government and HDEC creditors have
been pushing for the total cancellation of minor stockholders'
equity stakes, the company's depleted capital as prime
consideration, but, this will require the approval of the minor
stockholders.

The government and creditors are already preparing to make
equity investments at HDEC shares' current market price, should
the minor stockholders junk the proposal after the April 28
board meeting.

The partial cancellation may be conducted at the ratio placed at
8 to 1 or higher.  


HYUNDAI ENGINEERING: Foreign Creditors Sought
---------------------------------------------
An official of a Korean creditor of Hyundai Engineering and
Construction (HDEC) disclosed that the Korean creditor group
might ask for the cooperation of 16 foreign creditors of HDEC in
the bailout efforts for the ailing Korean construction company,
The Digital Chosun reported Tuesday. The domestic creditors are
calling for a rollover of foreign loans worth US$660 million.

These foreign loans were sourced from creditors in the United
States, Japan and the Middle East, and were made in the form of
payment guarantees, cash loans used to purchase construction
materials.


HYUNDAI INVESTMENT: Gov't To Clinch Talks By June's End
-------------------------------------------------------
The Korean government, according to an official at the FSC
subsidiary Securities Futures Commission (SFC), is confident in
the sell-off negotiations with American Insurance Group to take
over Hyundai Investment Trust and Securities Company (HITC)
before the start of the second half, The Digital Chosun reported
Monday.

Following the finalization of due diligence on HITC's
securities, AIG would also begin its own asset evaluation
proceedings.

According to the SFC official, AIG will inject into HITC an
investment amounting to US$1 billion. However, the American
consortium demanded that the Korean government must also pitch
in its counterpart financial bailout package.

On it's end, the government maintains it could not pitch in
public funds over W1 trillion.


UNION STEEL: Heads For Delisting
--------------------------------
Union Steel Company, market observers say, is doomed for
delisting, having failed to comply with regulations regarding
securities transactions, The Korea Herald reported.

According to a company official, the steel firm undertook a
buyback of shares, comprising about 5.08 percent stake, from
investors so as to secure minority shareholders with a 4-percent
stake, Herald reported. "There will be virtually no shares
traded in the market because the company's two majority
shareholders own a combined total of 96 percent of outstanding
shares," the company official told the Herald.

Union Steel's majority shareholders are Dongkuk Steel Company,
owning 58 percent, and Kwon Choel-hyun with 38 percent. Of the
two, it is the latter that has always objected to measures to
increase the company's capital for fear of its dilutive effect
on his stake.

The lessening of the minority shareholder's stakes violates the
securities transaction codes, which state listed firms will be
delisted should their minority shareholders' combined stake not
reach the 10 percent requirement.

Union Steel had a net income of W27.9 billion in 2000.


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


BESCORP INDUSTRIES: MoU With Hua Yang Ends
------------------------------------------
Aseambankers Malaysia Berhad, on behalf of the Special
Administrators (SA) of Bescorp Industries Berhad (BIB),
announced that the Memorandum of Understanding dated July 21,
2000 between the Company and shareholders of Hua Yang
Development Sdn Bhd, the Proposed Investors, to participate in
the Proposed Restructuring Scheme expired on April 20, 2001.

The Proposed Investors have expressed that they have no
intention to extend the MoU. The SAs are currently reviewing the
options available to the Company and will make such further
announcements to the Kuala Lumpur Stock Exchange in due course.

BIB will be undertaking a restructuring plan to enable it to
resume operations. Its subsidiaries, which have all ceased
operations, were involved in the manufacture of precast piles as
civil and building contractors and piling contractors.

BIB is currently preparing a revised proposed scheme of
arrangement with its creditors and is expected to submit the
proposed scheme to the court to obtain an order to convene a
formal creditors' meeting pursuant to Section 176 of the
Companies Act, 1965.

On March 2, 2000, Special Administrators were appointed to the
Company pursuant to Section 24 of the Pengurusan Danaharta
Nasional Bhd Act, 1998.


GOLDEN APPROACH: Court Adjourns Motion For Stay
-----------------------------------------------
The Shah Alam High Court on April 24, 2001 adjourned the
decision of Golden Approach Sdn Bhd's Motion for Stay of the
winding up order pending appeal and the Motion of Stay applied
by the Company under Section 243 of the Companies Act 1965 (Act
125) to September 25, 2001 and has further extended the interim
stay granted on November 22, 2000 until September 25, 2001.

The petition filed by Sri Binaraya Sdn Bhd (SBSB) against Golden
Approach Sdn Bhd (GASB), a wholly owned subsidiary of the
Company, for an alleged debt of RM2,108,820.22.


MALAYSIAN TOBACCO: Asks KLSE For Extension
------------------------------------------
On March 5, 2001, Arab-Malaysian Merchant Bank Berhad, on behalf
of the Malaysian Tobacco Company (Company/MTC), announced that
the conditional sale and purchase agreements have lapsed as the
Company did not receive the requisite regulatory approvals
within the extended timeframe stipulated. These pertained to the
proposed acquisition of several companies involved in
infrastructure and service related activities for a total cash
consideration of RM480.0 million.

With the lapse of the Conditional SPAs, MTC has been actively
identifying suitable parties and viable assets to be injected
into MTC so as to retain the listing status of the Company and
maximize shareholders' investment value within the extension of
time granted by the Kuala Lumpur Stock Exchange (KLSE) for the
non-suspension or delisting of the Company's shares.

In view of the impending expiry of the extension on May 2, 2001,
an application has been made to the KLSE for a further extension
of time of six months until November 2, 2001 to allow MTC to
proceed and conclude the proposed reverse take-over exercise.

The application is pending the KLSE's decision.

Further, on behalf of MTC, Arab-Malaysian is pleased to announce
that the Board of Directors has deliberated and accepted an
offer from MEASAT Global Network Systems Sdn Bhd (MGNS), subject
to the approval of the KLSE as aforesaid, to inject Binariang
Satellite Systems Sdn Bhd into the Company based on terms and
conditions which are set out in Sections 2 and 12 of this
announcement.

MGNS is the holding company of Binariang Satellite.

Details Of The Offer

The terms of the Offer are as follows:

(1) MGNS will acquire Chelwood Trading & Investment Company
Limited's equity interest of 54.7 percent in MTC for an
indicative cash consideration of approximately RM434.6 million
or RM3.92 per share based on the estimated net tangible assets
(NTA) of MTC upon the anticipated completion as at June 30, 2002
after adding an agreed premium of RM20.0 million for the listing
status of the Company;

(2) Concurrently, MTC will acquire the entire equity interest of
Binariang Satellite from MGNS for an indicative purchase
consideration of RM1,248.0 million to be satisfied by way of
RM574.0 million in cash and 179.99 million new ordinary shares
of RM1.00 each in MTC at a proposed issue price of RM3.745 per
share based on the audited NTA of MTC as at December 31, 2000;

(3) Pursuant to the Proposed Disposal, MGNS will extend an
unconditional mandatory general offer (GO) to the remaining
shareholders of MTC to acquire all the remaining shares not
already owned by them based on the same terms of the Proposed
Disposal, that is at an indicative price of RM3.92 per share;
and

(4) Subject to the outcome of the mandatory GO, MGNS may
undertake an offer for sale/placement of such number of shares
to the public and approved Bumiputra investors at an issue price
to be determined to address the public shareholding spread and
the Bumiputra equity requirements, where applicable.

The conditions of the Offer are set out in Section 12 of this
announcement.

Background

Binariang Satellite was incorporated in Malaysia under the
Companies Act, 1965 on August 28, 1992. The authorized share
capital of Binariang Satellite is RM200,000,000 comprising
200,000,000 ordinary shares of RM1.00 each, of which 97,000,002
ordinary shares of RM1.00 each have been issued and fully paid-
up.

Binariang Satellite (BS) is principally involved in operating a
regional satellite network for broadcasting, telecommunications
and Internet applications.

BS is a wholly-owned subsidiary of MGNS.

BS, which is the owner and sole licensed operator of Malaysia's
first regional satellite system known as MEASAT, was awarded a
20-year license in 1993. The license is due to expire in 2013.

BS has applied to migrate its existing license to the new
licensing regime as provided for under the Communications &
Multimedia Act, 1998. BS has been conferred interim Multimedia
Super Corridor status. This initiative of the Malaysian
Government allows Binariang Satellite to enjoy a range of
benefits, which includes exemption from exchange controls and
foreign ownership restrictions.

In addition, as a project of national and strategic importance,
Binariang Satellite has been granted the Approved Service
Project status by the Ministry of Finance, which enables BS to
enjoy fiscal incentives.

BS has been in operation for over four years. It has satellite
capacity dedicated primarily to the Southeast Asian region with
30 transponders currently in operation. MEASAT-1 and MEASAT-2
are in geostationary orbit at 91.5OE and 148OE respectively.

Basis For The Purchase Consideration

The indicative purchase consideration for the Proposed
Acquisition of Binariang Satellite was arrived at on a willing-
buyer willing-seller basis after taking into consideration the
license and the terms of the long-term contracts of the company
using the discounted cashflow methodology on the net cashflows
projected to be receivable in accordance with the terms of these
long-term contracts.

However, the indicative purchase consideration is still subject
to an independent valuation by an independent valuer to be
undertaken prior to the signing of the conditional sale and
purchase agreement.

Basis For Determining The Issue And GO Price

The proposed issue price for the new ordinary shares to be
issued pursuant to the Proposed Acquisition of Binariang
Satellite was arrived at after taking into consideration the
five days weighted average market price of MTC shares up to 23
April 2001, being the last day prior to the Board of Directors'
deliberation on the Offer, of RM3.28 and the audited NTA per
share of MTC as at 31 December 2000 of RM3.745.

The proposed issue price of RM3.745 represents a premium of
approximately 14% over the five days weighted average market
price of MTC shares. It also represents a premium of
approximately 13 percent over the closing market price of MTC
shares as at 23 April 2001 of RM3.32.

On the other hand, the indicative GO price of RM3.92 per share
represents a premium of approximately 20 percent over the five
days weighted average market price of MTC shares. It also
represents a premium of approximately 5 percent over the audited
NTA per share of MTC as at December 31, 2000.

Ranking Of The New MTC Shares

The new ordinary shares to be issued pursuant to the Proposed
Acquisition of Binariang Satellite will, upon allotment and
issue, rank pari passu in all respects with the existing
ordinary shares of MTC except that the new ordinary shares shall
not be entitled to any dividends, rights, bonuses, issues or
other allotments or distributions which relevant book closing
date is on or before the date of allotment and issue.

Group Structure

The structure of the MTC group before and after the Offer is set
out.

Malaysian Tobacco Company was incorporated in Malaysia under
Section 15(1) of the Companies Ordinances, 1940 to 1946 under
the name of Malayan Tobacco Company Ltd on September 28, 1956.
The Company was converted into a public company in February
1962.

On April 15, 1966, it changed its name to Malayan Tobacco
Company Bhd and assumed its present name on March 17, 1977. MTC
was listed on the Main Board of the KLSE on July 1, 1978.

The authorized share capital of MTC is RM157,950,000 comprising
202,500,000 ordinary shares of RM0.78 each, all of which have
been issued and fully paid-up.

MTC is presently a shell company.

MGNS was incorporated in Malaysia under the Act on May 12, 1992.
The authorised share capital of MGNS is RM25,000 comprising
25,000 ordinary shares of RM1.00 each, of which 2 ordinary
shares of RM1.00 each have been issued and fully paid-up. The
principal activity of MGNS is that of investment holding.

Pursuant to the lapse of the Conditional SPAs, the Company has
been actively identifying suitable parties and viable assets to
undertake a reverse take-over exercise so as to retain the
listing status of the Company and maximize shareholders'
investment value within the time granted by the KLSE for the
non-suspension or delisting of the Company's shares.

Presently, MTC has no business. As such, the Proposed
Acquisition of Binariang Satellite will enable MTC to have an
income-generating asset whereby the business of Binariang
Satellite will provide long-term cashflows and profits, and
reasonable return on investment which will benefit MTC in the
future years.

Further, being Malaysia's sole regional satellite system
licensed operator, the Proposed Acquisition of Binariang
Satellite will position the new MTC group to take advantage of
the opportunities in the telecommunications, multimedia and
technology industries in the future.

In addition, with the Offer, the shareholders of the Company
will be given the option to either retain their investment in
MTC based on the merits and prospects of the new asset/business
or to realize their investment via the mandatory GO. The Board
of Directors is of the view that this is a better option than
voluntary liquidation, which represents a measure of last
resort.

Ultimately, the Proposed Acquisition of Binariang Satellite will
ensure that the listing status of the Company be retained which
in turn will allow the shareholders' investment value to be
maximized in the long-run.

Based on the audited accounts of MTC for the financial year
ended December 31, 2000, the total cash balance and amounts
receivable by the Company is approximately RM758.319 million.
This amount is expected to be utilized to part-finance the
Proposed Acquisition of Binariang Satellite amounting to RM574.0
million and the balance for working capital for the new MTC
group and estimated expenses for the exercise.

The proposed utilization of cash reserves is subject to the
Securities Commission's (SC) approval.

The effects of the Offer will be announced upon signing of the
conditional sale and purchase agreements pursuant to the Offer
which will be subject to an independent valuation to be
undertaken by an independent valuer on Binariang Satellite, the
completion of the financial, legal and operational (where
applicable) due diligence audit on both MTC and Binariang
Satellite, and also the latest accounts of Binariang Satellite
which is currently being audited.

The Offer is conditional upon the following:

(a) An independent valuation to be undertaken by an independent
valuer on Binariang Satellite prior to execution of the
conditional sale and purchase agreement;

(b) The completion of the financial, legal and operational due
diligence audit to be conducted on Binariang Satellite, the
results of which must be satisfactory to MTC;

(c) The completion of the financial and legal due diligence
audit to be conducted on MTC, the results of which must be
satisfactory to MGNS;

(d) Execution of a conditional sale and purchase agreement to be
entered into between MGNS and MTC, the terms of which to be
agreed upon by both parties;

(e) Execution of a conditional sale and purchase agreement to be
entered into between MGNS and Chelwood, the terms of which to be
agreed upon by both parties;

(f) An extension of time to be granted by the KLSE for the non-
suspension of the Company's listing status.

(g) The approvals being obtained from the following:

i) Prime Minister's department;

ii) Ministry of Energy, Communications and Multimedia;

iii) Securities Commission (SC) for the Proposed Acquisition of
Binariang Satellite and utilisation of cash reserves in MTC
arising from the disposal of MTC's operating businesses;

iv) Foreign Investment Committee;

v) KLSE for the listing of the new ordinary shares to be issued
pursuant to the Proposed Acquisition of Binariang Satellite;

vi) existing lenders of Binariang Satellite;

vii) the shareholders of MTC at an Extraordinary General Meeting
to be convened;

viii) the shareholders of MGNS; and

ix) any other relevant authorities.

As the Proposed Disposal and Proposed Acquisition of Binariang
Satellite are inter-conditional, the Offer is also subject to
the acceptance of the terms of the Offer pertaining to the
disposal of Chelwood's entire equity interest of 54.7 percent in
MTC by Chelwood.

Chelwood, a substantial shareholder of MTC, is the vendor to the
Proposed Disposal, which will be undertaken simultaneously with
the Proposed Acquisition of Binariang Satellite. As such,
Chelwood is deemed interested in the Offer.

British American Tobacco plc (BAT) is deemed interested in the
Proposed Acquisition of Binariang Satellite by virtue of its
indirect shareholdings in MTC through Chelwood's equity interest
in the Company. Accordingly, the nominated Directors of BAT who
sit on the Board of MTC namely Russell Cameron, Ghazali bin
Salamat, Emil Moskofian and Thye Heng Ong, have abstained from
participation and deliberation on the Proposed Acquisition of
Binariang Satellite.

Save as disclosed above, none of the Directors, substantial
shareholders and persons connected with them have any interest,
direct and/or indirect, in the Proposed Disposal and Proposed
Acquisition of Binariang Satellite.

After taking into consideration that MTC is a shell company, the
KLSE listing requirements, the business and growth prospects of
Binariang Satellite and its industry, the Board of Directors,
save for the nominated Directors of BAT namely Russell Cameron,
Ghazali bin Salamat, Emil Moskofian and Thye Heng Ong, on the
advice of Arab-Malaysian and after careful deliberation, is of
the opinion that the Offer is in the long-term interest of the
Company and its shareholders.

Submission to the SC and other authorities on the Offer is
expected to be made within three months from the date of
execution of the conditional sale and purchase agreement.


MAN YAU: SC Approves Restructuring Bid
--------------------------------------
Man Yau Holdings Berhad (MYHB) announced that the company has
received the approval of the Securities Commission for the
application made by the Promoters. Datuk Rahim Baba, Dato' Megat
Najmuddin bin Datuk Seri, Dr Hj Megat Khas and Chan Ngow applied
for an exemption under Practice Note 2.9.3 (relating to rescue
operations) of the Malaysian Code on Take-Overs and Mergers
1998. This was done according to the obligation under Part II of
the Code to extend a mandatory offer to acquire the remaining
shares in Kinta Mestika Sdn Bhd not already held by them
collectively, after the completion of the proposed acquisitions
of six private companies, as set out in the recent announcement
by MYHB dated April 12, 2001.

The Man Yau Holdings (MYH) Group produces plastic parts and
components for audio equipment, electronic products and
electrical equipment. About 95 percent of the Group's products
are sold directly to MNCs and the balance 5 percent to OEMs for
export to the US.

In 1995, MYH diversified into the manufacture of rubber latex
examination gloves and property development and in 1997 into
private education.

Currently, MYHB is seeking to resolve its cash flow problems via
a reverse take over agreement involving the acquisition of
Applied Business Systems Sdn Bhd (ABSSB), capital reduction and
consolidation or reconstruction and debt restructuring. For this
purpose a restraining order has been obtained under Section
176(10) valid for three months from October 16, 2000.

Construction of a building at Northam Road, Penang, under a new
financial package is meanwhile due for completion at the end of
year 2000, and the plastics manufacturing activities are
operational on a limited scaled down basis.


NCK CORPORATION: Announces Appointment Of SAs
---------------------------------------------
NCK Corporation (NCK) announced that on the April 16, 2001, YBhg
Dato' Nordin Baharuddin, Adam Primus Varghese Bin Abdullah and
Mdm Wong Lai Wah of Messrs Ernst & Young were appointed as
Special Administrators of NCK Corporation Berhad (NCKB) under
Section 24 of the Pengurusan Danaharta Nasional Berhad Act 1998.

The terms of reference of the Special Administrators is to take
possession of NCKB , manage the business and operations of NCKB,
assess the business viability of NCKB and prepare a workout
proposal, as soon as practicable, taking into consideration the
interests of the secured and unsecured creditors and also the
shareholders.

As such, the Special Administrators will on their appointment
assume control of the assets and affairs of NCKB. The powers of
the management and the Board of NCKB are effectively suspended
and only the Special Administrators can deal with the assets of
NCKB.

In order to preserve the assets of NCKB until we are able to
complete our task as Special Administrators, a 12-month
moratorium will take effect from the date of our appointment.
During that period, no creditor may take action against the
Company.

In the meantime, the business operation is expected to continue  
as usual and will not be disrupted. In addition no impact is
expected on the net tangible assets and earnings per share of
the Group nor will there be any expected material or significant
loss arising from the appointment of the Special Administrators.

The NCK Group's core activities are manufacturing and marketing
of aluminum and steel building materials and building
contracting.

The materials supplied by NCK Group are mainly used in the
construction and engineering sectors as structural reinforcement
for buildings and river banks; construction material for
highways, bridges and roads; structures in the construction of
factories; structure and construction material for machinery and
palm oil mills, the shipbuilding and mining industries and the
oil and gas industry.

The majority of NCK Group's sales are to the domestic market.
NCK Group has diversified both upstream into the manufacturing
sector and downstream into the property development,
construction and related services sector.

NCK Group is currently undertaking a rationalization exercise to
provide an avenue for the restructuring of its working capital
requirement and the streamlining of its operations into
profitability. With the cash proceeds arising from various
disposals that are proposed, NCK would be able to reduce its
debt burden.


NCK CORPORATION: Special Administrators Appointed
-------------------------------------------------
Pursuant to Section 24 of the Pengurusan Danaharta Nasional Act
1998, Pengurusan Danaharta Nasional Berhad (Danaharta) had
recommended the appointment of Special Administrators for NCK
Corporation Berhad to the Oversight Committee.

With the approval of the Oversight Committee, the appointment of
the Special Administrators took effect April 16, 2001.

NCK Corporation Berhad (NCKB) had defaulted in its interest
servicing and principal repayments since April 1999. Over the
last 18 months, NCKB, with the assistance of the CDRC, had
attempted to restructure its debts. Despite this, an acceptable
plan could not be conceived and implemented.


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


NATIONAL BANK: Gov't Asks WB To Extend Deadline
-----------------------------------------------
The Philippine government, according to Finance Secretary
Alberto Romulo, is requesting an extension from World Bank in
order to sell Philippine National Bank. The goveernment is
asking for six more months. The bank sale must go through before
World Bank grants the $300 million banking sector reform loan
(BSRL) that the government is trying to access, Malaya reported
Tuesday.

Norberto Nazareno, president of the Philippine Deposit Insurance
Corporation, told Malaya that the due diligence audit, which
will be the basis for the joint sale of stakes held by the
Philippine government and majority shareholder Lucio Tan, being
conducted by PricewaterhouseCoopers is due by the end of this
month.

"Obviously, they needed more time and (June) is a little bit too
close. We could ask (for) probably six months (extension),"
Romulo said.


NATIONAL STEEL: Allengoal Lease Bid Gets Backing
------------------------------------------------
Pengurusan Danaharta Nasional Berhad, which has taken over the
stakes held by Hottick Investments Limited, said it is going to
back up the bid of Allengoal Steel Fabrication Trading Company
to lease the steel plant of the beleaguered National Steel
Corporation (NSC), while NSC's parent Hottick is still in the
search for the steel firm's white knight, The Edge Daily
reported Monday.

Allengoal proposed the Philippine government lease the plant at
P20 million per month for a minimum of two years, apart from
rehabilitating NSC and injecting cash deposits and revenues of
P100 million. Moreover, Allengoal intends to give the steel
firm's owner a share of net profits by as much as 40 percent
once it recoups the cost.

NSC is currently in receivership, placed there by the Securities
and Exchange Commission, with debts amounting to P15 billion.


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


ASCOTT GROUP: Divests Gold Course In China
------------------------------------------
The Ascott Group has divested its interest in The Masters Golf
and Country Club in Guangzhou, China accelerating the divestment
of its non-core businesses.

It has sold its stake to Simplex Capital Asia Limited, a
Hongkong-based investment company, for US$16.3 million in cash,
and 150 transferable country club memberships valued at US$2.3
million.

The Ascott Group's CEO, Kee Teck Koon, said, "The golf course
development has been a drag on the company's cashflow and
profitability.

"Although we have managed to break even at the operating level
this year, it is in the best interest of our group to divest it,
and focus our resources and management expertise on our core
serviced residence business, in which we are clear regional
leaders with significant competitive advantage."

He added: "Although the sale price is below the golf
development's book value of S$45.5 million, and will thus result
in a loss of S$10.5 million for the current financial year,
going forward, this divestment is financially positive for the
group. We will no longer be saddled with further losses from the
golf course business. We estimate that the sale will save the
company S$5.2 million per annum in further operating               
costs, interest and depreciation."

The Masters Golf and Country Club is a joint venture started in
1993 between the then Liang Court Holdings (subsequently renamed
Somerset Holdings) with 70 percent stake, and the Guangzhou
Fangcun District Government with 30 percent stake.

Located in the Fangcun district, the golf club has a world-class
18-hole golf course designed by the UK Professional Golfers'
Association, a 64-bay public driving range, and a 6,000-square
meter Mediterranean-style club house.

Under the agreement, Simplex Capital Asia will honor the
existing terms and conditions in the club's founder and ordinary
memberships.

The sale of its golf course business forms part of The Ascott
Group's strategy to dispose its non-core businesses and S$1.4
billion worth of non-core assets over the next two to three
years.

Moving rapidly on its divestment program, the group last month
sold its Orchard Point retail podium for S$91 million; and last
week assigned all its retail property management contracts to
CapitaLand Commercial for S$8.5 million.

The company has also announced plans to dispose another S$400 to
S$500 million of its retail properties in Singapore in the next
few months.

Together with cash generated from operations, the proceeds from
the sale of its non-core properties will be used to retire debts
and fund the expansion of its serviced residence business in
Europe, North Asia, Australia and the US.

The Ascott Group, which is today the Asia Pacific's largest
serviced residence company, aims to transform from a regional
leader into a global leader in serviced residences. It targets
to expand its network of serviced residences to 15,000 units by
2005, from its current 6,000 units.

Last month, it announced a S$5-million brand rationalization and
promotion exercise to develop its leading regional serviced
residence brands - 'The Ascott' and 'Somerset' brands -- into
global brands.

The sale of the Masters golf course project will result in a
decrease of 0.68 Singapore cent in the company's earnings per
share and net tangible assets per share for the current
financial year.

However, this will be partially offset by the net gain of S$5.9
million from the divestment of Orchard Point, which positively
contributes to earnings per share of 0.37 Singapore cent and an
increase of 0.48 Singapore cent in net tangible assets per share
for the current financial year.

Payment for the Orchard Point transaction will be received in
August this year, although the sale will complete in August
2002.

About The Ascott Group

The Ascott Group is the Asia Pacific's largest serviced
residence company. Its "The Ascott" and "Somerset" serviced
residence brands are dominant market leaders in the region.
Created through the merger between The Ascott Limited and
Somerset Holdings Limited in November 2000, the group owns
and/or manages over 6,000 serviced residence units in 16 cities
in 10 countries.

Headquartered in Singapore, The Ascott Group's shares are listed
on the Singapore Exchange as "Ascott". The group is the serviced
residence arm of CapitaLand Limited, Southeast Asia's largest
listed property company.


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T H A I L A N D
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RAIMON LAND: Construction Unit Reduces Capital
----------------------------------------------
Raimon Land Public Company Limited, represented by Raimon Land
Planner Company Limited as its Planner, announced that Raimon
Construction Co., Ltd. (formerly NCC International-Raimon Land
Co., Ltd.), in which Raimon Land Public Company Limited has
invested at the ratio of 40 percent, has effected reduction of
the company registered capital from the existing amount of Bt10
million to Bt2.5 million, by decreasing the number of shares to
250,000 ordinary shares.

In such reduction of the registered capital of Raimon
Construction Co., Ltd., it will result that Raimon Land Public
Company Limited as a shareholder reduce the number of shares
from the existing 400,000 shares, par value of Bt10 each,
totaling Bt4 million to only 100,000 shares at par value of Bt10
each, totaling Bt1 million.  

However, the number of the 100,000 shares held by Raimon Land
Public Company Limited still accounts for 40 percent of the
registered capital of Raimon Construction Co., Ltd. in
accordance with the original proportion earlier invested by the
Company.

After such reduction of the registered capital, Raimon Land
Public Company Limited, as shareholder, will receive the refund
of capital from Raimon Construction Co., Ltd. in respect of
300,000 shares, at Bt10 per share, totaling Bt3 million.


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

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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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