/raid1/www/Hosts/bankrupt/TCRAP_Public/010430.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

                 Monday, April 30, 2001, Vol. 4, No. 84


                               Headlines


A U S T R A L I A

AGRO HOLDINGS: Assets Up For Sale
CENTRAL NORTH: Sale May Raise Less Than $1.6-B Debts
CUE ENERGY: Reports Anggur-2 Status
FRANKLINS AUSTRALIA: Inquiry Begins Re Woolworths' Bid
HIH INSURANCE: Downfall Drags Doctors' Deal
WAREHOUSE GROUP: Reports Performance Outlook


C H I N A   &   H O N G  K O N G

CENTRAL WORLD: Faces Winding Up Petition
CHEUNG MAN KAI: Winding Up Petition
CIVILPEN LIMITED: Faces Winding Up Petition
INTEGRATED COURT: Winding Up Petition Hearing Set
SERVICE CENTER: Faces Winding Up Petition
SHANGHAI NARCISSUS: Delisted


I N D O N E S I A

HOLDIKO PERKASA: Closes Indocement Transaction
INDORAMA SYNTHETICS: Seeks Rp600-B To Refinance Loans
SINAR MAS GROUP: IBRA Seeks Widjaja's Guarantee


J A P A N

AIWA COMPANY: Net Loss Triples In FY 2000
WILD BLUE: Pulling Plug In September


K O R E A

DONGSU INDUSTRY: Declares Bankruptcy
HYNIX SEMICON: Interest Premium To Attract Creditors
HYUNDAI ENGINEERING: Bailout Package Still Unsettled
HYUNDAI ENGINEERING: Chim To Be Appointed As CEO
HYUNDAI ENGINEERING: Chung's Stake Cut By 61%
HYUNDAI ENGINEERING: Creditors In ITS To File Lawsuit
KOREA LIFE: Gov't To Infuse W1.5-Trillion
L&H KOREA: Files For Bankruptcy


M A L A Y S I A

HUANGSHI HEILEN: Court OKs Winding-Up Proceedings
INNOVEST BERHAD: Bank Accepts Proposed Settlement
JASATERA BERHAD: BOD Approves Revision Of Recap Proposal
L&M EAST: Court Grants Winding Up Order
MALAYAN BANKING: SC OKs RM1-B Bonds Program
ZAITUN INDUSTRI: Faces Winding Up Petition
ZAITUN INDUSTRI: Faces Winding Up Petition


P H I L I P P I N E S

NATIONAL BANK: NPL Stands At P40.29-B
NATIONAL BANK: Delinquent Account Investigated
URBAN BANK: Reopening Planned In Next Half
VICTORIAS MILLING: Ma¤alac Asks SEC To Drop Charges


S I N G A P O R E

CAPITALAND: Sells Stakes To Hotel Plaza Limited
LIM KAH: Posts Auditors' Report


T H A I L A N D

THAI HEAT: Trading Suspended
QUALITY HOUSES: Announces Results Of AGM
QUALITY HOUSES: Announces Results Of Conversion
QUALITY HOUSES: Appoints Directors
QUALITY HOUSES: AGM Resolves To Increase Capital
QUALITY HOUSES: BOD Sets Closing Date
QUALITY HOUSES: Closing Of Book Slated In May


     -  -  -  -  -  -  -  -  -  -

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


AGRO HOLDINGS: Assets Up For Sale
---------------------------------
Assets of Agro Holdings, which was placed into the hands of
receiver-manager Geoff Totterdell of PricewaterhouseCooper early
this month, were put up for sale Tuesday last week, Australasian
Business Intelligence reported last week.

The sale constitutes Agro Holdings' 18 tractor dealerships all
over Australia.

Agro Holdings owes A$7 million and A$9.5 million respectively to
major creditors Challenge Bank (Westpac) and ESANDA Finance
Corporation.


CENTRAL NORTH: Sale May Raise Less Than $1.6-B Debts
----------------------------------------------------
Central North Island Forest Partnership, the largest managed
forest in New Zealand, which was placed in receivership in
February, is expected to fetch a sale price lower than its total
debts of $1.6 billion, The Press reported early last week.

Worse than that, based on its timber turnover and prevailing
market prices, the forest could be valued at $600 million
according to New Zealand Timber Industry Federation CEO Wayne
Coffey.

The partnership, a joint venture of Fletcher Challenge Limited
and China International Trust and Investment Corporation
(Citic), went under the receivership of Ferrier Hodgson in
February as a result of the breach in the loan agreement made by
the two partners. The venture suffered from a downturn due to
the drop of log prices.   

Washington-based Weyerhaeuser, Carter Holt Harvey, and Fletcher
Challenge are expected to make their bids in the sell-off.


CUE ENERGY: Reports Anggur-2 Status
-----------------------------------
Cue Energy Resources Limited announces 6 AM April 26, 2001, the
Anggur-2 well in the Sampang PSC offshore East Java, Indonesia,
was at a depth of 409 metres. 30" casing was set at 156 metres.
On April 23, 2001 the well flowed in an uncontrolled manner
while drilling 26" hole at 409 metres, without a riser.

In accordance with safety procedures the drill pipe was severed
and the drilling vessel moved off location. There was no damage
to the drilling rig or injury to any personnel involved. The
flow has subsequently diminished.

Anggur-2 is located at Latitude:    7 deg 18' 15.61"S
                       Longitude: 113 deg 03' 00.22"E
                       in 15 metres of water.

Participants in the Sampang PSC are:

Cue Sampang Pty Ltd              15 percent
Santos (Sampang) Pty Ltd         45 percent (Operator)
Coastal Indonesia Sampang Ltd    40 percent


FRANKLINS AUSTRALIA: Inquiry Begins Re Woolworths' Bid
------------------------------------------------------
The Australian Competition and Consumer Commission (ACCC) began
its investigation last Tuesday into Woolworths' proposal to
acquire 80 stores of Australian retailer Franklins Australia,
The Courier Mail reported Wednesday last week. This undertaking
will take ACCC four to six weeks of studying the list of stores
involved in the proposal.

Professor Allan Fels, ACCC chairman, told Courier the agency is
wary about the proposed transaction, due to the dramatic rise of
Woolworths shares to an intra-day high of $9.07. He said, "We
are looking at each of them in each area and we are also looking
at it more globally because it would further increase the power
of the two big supermarket chains. We're very concerned about
dominance in such an important sector."


HIH INSURANCE: Downfall Drags Doctors' Deal
-------------------------------------------
The State government voiced its concern that the downfall of HIH
Insurance would continue to weigh down a deal to keep indemnity
insurance premiums at affordable rates, especially for rural
medical practitioners. The country's premier indemnity provider,
United Medical Protection, has not implemented its pledge to
reduce the premiums by 12 percent, The Herald Sun reported last
week.    

UMP explained that it has to survive the additional costs
resulting from the collapse of HIH Insurance. A UMP spokesman
said the full discount of the indemnity premiums would be made
in the next one to one-and-a-half years the legislation is
introduced.

"But costs such as reinsurance costs, interest rates and claims
may have increased or decreased current subscriptions by the
time it happens," the spokesman told The Sun.

The State Government of New South Wales is going to institute  
legislation in May "capping medical negligence payments in some
cases and preventing insurers from insuring only those doctors
of low risk."

HIH Insurance and its subsidiaries were placed in provisional
liquidation last month when the insurance giant was felled by
losses reaching $800 million incurred within the last half-year
period.


WAREHOUSE GROUP: Reports Performance Outlook
--------------------------------------------
The Chairman of The Warehouse Group Limited, Keith Smith,
released the following statement concerning latest trading
performance and the outlook for the balance of the financial
year:

"In the last few days the Group report, for the half-year ended  
January 31, 2001, including the Chairman's Report written on  
March 12, has been sent to Shareholders. This report stated that
the Clints sales performance was `subdued...reflecting the
tighter retail trading conditions evident in Australia.'

"Since the half-year, Clints trading in March and April has
deteriorated owing to the continued weak retail environment and
a fall in gross margins. Sales and gross margins are
significantly below plan owing to unsatisfactory inventory
management and other integration issues. The weak Australian
dollar is compounding margin pressure as a significant portion
of Clints merchandise is imported. There seems little prospect
of an improvement in the general Australian economic environment
in the near future.

"Following discussion at yesterday's Board meeting, we have
decided to clear slow moving inventory from the Australian
business. This will have a negative effect on short term
reported earnings and our revised forecast for Clints is that it
will not produce any positive EBIT contribution this financial
year against previous expectations of an EBIT contribution of
A$8 million.

"While management action has put the property expansion program
on track, with at least 12 new stores to be opened by the end of
the calendar year, sales in existing stores in March and April
have been significantly below expectation; hence the decision to
clear inventories at the expense of short term reported
earnings.

"Furthermore, the exercise of options by team members of The
Warehouse has resulted in an extra one-off reported expense of
A$2.2 million caused by the difference between the corporate tax
rate and the top marginal tax rate. The charge will be included
in the second half-financial results. It should be noted that
from the company's point of view, this charge is compensated for
by a reduction in the number of shares that the company would
have been obliged to issue under the scheme, had personal tax
rates not been increased.

"While The Warehouse and Warehouse Stationery businesses
continue to perform solidly, the weak trading result from Clints
and the options tax charge now suggests that current market
consensus for after tax earnings of The Warehouse Group for the
year ended July 31, 2001 are in the region of 15 percent too
high.

"The Warehouse Group Limited expects to release its third
quarter sales for the three months ended April 30, 2001 on
Friday May 4, 2001."


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


CENTRAL WORLD: Faces Winding Up Petition
----------------------------------------
Central World Industries Limited is facing a winding up
petition, to be heard before the High Court of Hong Kong on May
23, 2001. Wong Yan Kwong of Unit 1017, 10th Floor, Metro Centre
II, 21 Lam Hing Street, Kowloon Bay, Hong Kong, filed the  
petition on March 16, 2001.


CHEUNG MAN KAI: Winding Up Petition
-----------------------------------
The winding up petition against Cheung Man Kai Investment
Company Limited will be heard before the High Court of Hong Kong
on May 23, 2001. Wing Lung Bank Limited, whose registered office
is situated at No. 45 Des Voeux Road Central, Hong Kong, filed
the petition on March 24, 2001.


CIVILPEN LIMITED: Faces Winding Up Petition
-------------------------------------------
Civilpen Limited is facing a winding up petition to be heard
before the High Court of Hong Kong on June 6, 2001. The petition
was filed with the court on April 2, 2001 by Regent Construction
Company Limited whose registered office is situated at Unit 713,
International Plaza, 20 Sheung Yuet Road, Kowloon Bay, Hong
Kong.


INTEGRATED COURT: Winding Up Petition Hearing Set
--------------------------------------------------
The winding up petition against Integrated Court Services
Limited is scheduled to be heard before the High Court of Hong
Kong on May 16, 2001. Leung Kwok Yin, Eric of Flat A, 7th Floor,
Kai Tak House, 78 Hip Wo Street, Kwun Tong, Kowloon, Hong Kong,
filed the petition with the court on March 5, 2001.


SERVICE CENTER: Faces Winding Up Petition
-----------------------------------------
Service Center Limited is facing a winding up petition, which
will be heard before the High Court of Hong Kong on May 30,
2001. Airland Enterprise Co. Limited, whose registered offices
are situated at 2nd Floor, Yau Tong Industrial Building, 2 Shung
Shun Street, Kowloon, Hong Kong, filed the petition with the
court on March 30, 2001.


SHANGHAI NARCISSUS: Delisted
----------------------------
Shanghai Narcissus Electric Appliances Company has been delisted
from the stock market by the China Securities Regulatory
Commission, signaling the trading halt of its 17.5 million yuan
Class A shares and US$110 million Class B shares, Bloomberg
reported Tuesday last week. This Shanghai-based washing machine
manufacturer has reported losses for three straight years.  

Norman Ho, fund manager of Value Partners Limited (Hong Kong),
said in the Bloomberg report, "The move to delist is good news
because it shows the authorities are putting their words into
action and are serious about raising the standard of the overall
market. We remain bullish about the Chinese market."

According to the Bloomberg report, Narcissus divested its 50
percent holdings last year in the $20-million joint venture with
Noritz for $7.3 million. At the end of 2000, the Narcissus''s
debts stood at 465.4 million yuan, while its loss burgeoned by
12 percent to 211.03 million yuan on sales of 109.8 million
yuan.

Meanwhile, China Textile Machinery Company, which holds 2.2
million Narcissus shares, announced its plan to write off its 7
million-yuan investment in Narcissus. Textile Machinery Board
Secretary Ying Minggang added, "But so long as the company
doesn't go bankrupt, there is still hope that it may turn a
profit one day."

Narcissus is the first loss-making company subjected to the
delisting drive launched by regulators to clean up the market,
as the country revs itself up to foray into the World Trade
Organization.

However, Narcissus's shares can still be traded off-market
through designated brokers, although the trading process has yet
to be determined according to regulators. "It is now up to
Narcissus to appoint which securities firms may handle their
shares," Zhou Qingye, head of the listing department at Shanghai
Stock Exchange.


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


HOLDIKO PERKASA: Closes Indocement Transaction
----------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) and PT Holdiko
Perkasa (Holdiko), a holding company established pursuant to the
Shareholding Settlement Agreement between IBRA and the Salim
Group, today announced the completion of the sale of their
entire shareholding in PT Indocement Tunggal Perkasa Tbk
(Indocement) to Heidelberger Zement AG (Heidelberger) on April
18, 2001.

The sale of IBRA's and Holdiko's shares is part of a deal
involving the sale of Indocement's shares, issuance of rights
and warrants, debt-to-equity conversion, and a put option from
the government, resulting in significant foreign investment of
more than US$300 million.

"This transaction marks a major achievement for Indonesia as a
whole. It signifies continued foreign interest accompanied by
the commitment of funds into Indonesia and in acquiring
IBRA/Holdiko assets," said Edwin Gerungan, Chairman of IBRA.
Dasa Sutantio, Director AMI of IBRA further added, "Not only
have we succeeded in attracting foreign investment by a major
multinational corporation through an IBRA asset sale, but the
government has also secured an exit for a portion of their
existing stake to be sold in due course. In addition, the
structure of the deal has provided a win-win solution to
Indocement's debt restructuring with its creditors."

IBRA/Holdiko Asset Sale

IBRA's entire 158,550,396 shares (6.38 percent prior to the
rights issue) were sold for a total Rp354.9 billion, payable 12
months after closing. Holdiko's entire 318,707,838 shares (12.83
percent prior to the rights issue) were sold as follows:
206,833,233 shares were sold for a total of US$43.8 million paid
at closing, and the remaining 111,874,605 shares for a total of
Rp250.4 billion payable 12 months after closing.

With the close of this transaction, IBRA and Holdiko no longer
hold any shareholding in Indocement.

Government Put Option

The Government of Indonesia through the Ministry of Finance
continues to hold 621,128,380 shares, or 16.87 percent of the
total 3,681,191,447 issued shares after the rights issue,
assuming no other shareholder exercises its rights. In this
transaction, the Government of Indonesia receives

(i) a put option, or the right to sell to Heidelberger, two
years after closing, 143,241,666 shares for a total amount of
Rp352.7 billion, and

(ii) 473,975,613 warrants exercisable into Indocement shares at
a price of IDR 1,200 per share for the first year and Rp1,400
per share for the second year (of which 109,305,996 is
extinguished if the put option is exercised).

Rights Issue & Debt Restructuring

Following Indocement's rights issue, effective on 24 April 2001,
Heidelberger has exercised the entire rights previously owned by
Indocement's other major shareholders, PT Mekar Perkasa (MP) and
PT Kaolin Indah Utama (KIU), to facilitate the conversion of
USD150 million of Indocement's debts into equity.

Subsequent to this, Heidelberger purchased the shares owned by
MP and KIU on 26 April 2001, resulting in Heidelberger owning an
ultimate 61.7 percent of PT Indocement Tunggal Perkasa Tbk,
assuming no other shareholder exercises his warrants rights.

Heidelberger Zement AG

Heidelberger Zement AG (Heidelberger) is the world's third
largest producer of cement, concrete and building materials,
with a total sales turnover of EUR6.8 billion. In 2000, their
Group wide cement and clinker sales volume amounted to 46.5
million tons. With an international market presence in Europe,
Turkey, North America, Asia and Africa, Heidelberger employs
more than 36,000 people in 50 countries. This acquisition will
increase the cement capacity of Heidelberger by 25 percent and
its influence in Asia will increase to 22 million tons cement
production capacity.

President & COO - Asia of Heidelberger, Thierry Dosogne,
remarked, "Indocement will benefit from Heidelberger's strong
international experience as well as from our Group's expertise
in the area of technology and international trading."

Holdiko Asset Sales

"The closing of Indocement's transaction is our sixth completed
asset sale this year," said Scott Coffey, Director of Holdiko.
Cash proceeds received by Holdiko this year to date are derived
from the following completed transactions:

First Pacific Co. Ltd.
Indocoal           US$8.55 million
Salim Plantations  US$45.5 million
- Loan repayment to  US$368 million
Holdiko            Rp357 billion
Mosquito Coil Group Rp610 billion
Indomaret         Rp162 billion
Indocement (Tranch A) US$43.8 million
           (Tranch B) Rp250.4 billion
Total Gross Proceeds  Rp5.945 trillion

"Holdiko continues to proceed with the selection process of
appointing financial advisors for individual sale transactions
scheduled for this year. In the meantime we are in the process
of conducting the due diligence phase for Kerismas, preparing
the refinancing and strategic sale of Indosiar, as well as
preparing the sale of Indopoly and Sulfindo," Coffey added.

Holdiko is expected to complete 25 to 28 asset sale transactions
and raise IDR 7.2 trillion this year.

PT Holdiko Perkasa was established in relation to the settlement
between the Salim Group and IBRA with regard to loans extended
by PT Bank Central Asia (BCA) to companies affiliated to the
Salim Group. As part of the settlement agreement with IBRA, the
Salim Group transferred shares and assets in more than 100
operating companies to PT Holdiko Perkasa.

As direct and indirect shareholder of these companies, it is
Holdiko's responsibility to supervise each individual company
with the aim of disposing of a sufficient amount of these
shareholdings. Holdiko will subsequently direct the disposal
proceeds to IBRA as part of the settlement agreement.

The Indonesian Bank Restructuring Agency (IBRA) is an agency of
the government of Indonesia established at the beginning of 1998
as the primary agency to oversee the rehabilitation of the
financial sector. IBRA is authorized to take over and control
troubled banks and disposes of their assets and collateral.


INDORAMA SYNTHETICS: Seeks Rp600-B To Refinance Loans
-----------------------------------------------------
PT Indorama Synthetics, one of the major role players in
Indonesian textile industry, is seeking to raise as much as
Rp600 billion to refinance its foreign-denominated loans and  
trim down its proposed bonds issuance this year worth Rp1
trillion, IndoExchange reported Friday last week.

Indorama's Corporate Secretary V.S. Baldwa, as quoted in
IndoExchange, explained that the company will source the amount
from different financing institutions, so as not to rely on the
bond market, which he described as "not looking so good
recently."

Eight banks have already pledged to yield to Indorama's request,
including Bank Central Asia, pledging Rp200 billion.

According to a recent study, the weakening rupiah and the major
turnaround in the Indonesian economy will be advantageous to
Indorama, which exports 50 to 60 percent of its annual optimum
production of 210,000 metric tons.


SINAR MAS GROUP: IBRA Seeks Widjaja's Guarantee
-----------------------------------------------
The Indonesian Banking Restructuring Agency (IBRA) is demanding
the personal guarantee of the owner and founder of the Sinar Mas
Group, Eka Tjipta Widjaja, over and above the assets guarantee
provided by the group with value exceeding 45 percent of the
total liabilities, IndoExchange reported Friday last week,
citing IBRA Head Edwin Gerungan.

"I do not know for certain the exact figure, but it has exceeded
the 145% level," Gerungan told IndoExchange, adding that IBRA's
demand is apart from the personal guarantees given by Eka
Tjipta's four sons.  
   
Sinar Mas Group's liabilities already amount to Rp12 trillion,
whose maturity has been postponed to September 30 in 2003.


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


AIWA COMPANY: Net Loss Triples In FY 2000
-----------------------------------------
Aiwa Company posted a consolidated net loss of Y39.01 billion
for the year ended March 31, three times as much as the Y11.46
billion in net loss made in the preceding year, Japan Times
Online reported Friday last week. Because of this, Aiwa decided
to default dividend payments.

Aiwa attributed the mercurial rise of its losses to the decline
in Japanese product consumption, and the current slump in the
American economy.

The huge figure was incurred on top of an extraordinary loss of
Y1.67 billion brought about by an early retirement offering as
entailed in the rehabilitation program.

Aiwa sales slipped 10.7 percent to Y292.90 billion, including
overseas sales of Y236.80 billion.

Aiwa now expects to cut its group net loss to Y32 billion for
the current year, Y11 billion in pretax loss on group sales of
Y240 billion.


WILD BLUE: Pulling Plug In September
------------------------------------
Operator NKK Corporation said Thursday that the indoor water
park Wild Blue Yokohama will be padlocked in September, citing  
the number of visitors have diminished recently owing to the
ongoing economic slump, Yomiuri Shimbun reported Friday last
week.

The year-round water park opened in June 1992, and as of last
March, hit the 6 million mark in volume of visitors.

NKK told Shimbun, Wild Blue was subjected to a series of
rehabilitation exercises, such as  cost-cutting measures in
operations, and vigorous ads and promo drives. However, the park
operator finds that the park has no more hope for a possible
recovery.

NKK now expects to post a loss of Y3.3 billion for the current
financial year, as a result of the inevitable closure. The
operator will later decide what to do with the land vacated by
the park.


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


DONGSU INDUSTRY: Declares Bankruptcy
------------------------------------
Dongsu Industry, a producer of concrete and tiles, has declared
itself bankrupt with debts totaling W93 billion, including bonds
worth W46 billion, Asia Pulse reported last week. The bankrupcy
was declared two days after Dongsu applied for court
receivership Monday last week with the Seoul District Court
following its failure to fulfill its obligations to Kookmin Bank
and Korea Exchange Bank amounting to W5.1 billion worth of
maturing notes.

Dongsu earned an operating profit of W23 billion via a
restructuring program last year. However, the prevailing general
conditions in the industry weighed on Dongsu's financial health.


HYNIX SEMICON: Interest Premium To Attract Creditors
----------------------------------------------------
The proposal of Hynix Semiconductor's lead-manager Salomon Smith
Blarney (SSB) to raise the annual interest premium on still-to-
be-issued convertible bonds (CB) to 12 percent is a scheme to
attract local creditors to buy the CBs, The Digital Chosun
reported Thursday last week. Total CBs to be issued by Hynix
will be worth W1 trillion.

The proposal points out that the higher per annum interest is
set to compensate for the deficit which will inevitably happen
should the CB issuances fall below Hynix shares' market price.


HYUNDAI ENGINEERING: Bailout Package Still Unsettled
----------------------------------------------------
A series of meetings Wednesday last week among creditors of
Hyundai Engineering and Construction Company (HDEC) failed to
firm up a bailout package to offer the troubled construction
giant, as creditors disagreed over the share ratio in the
proposed debt-to-equity conversion, The Digital Chosun reported
Thursday last week.

This disagreement stemmed from the refusal of a number of
creditors to disclose the definite amounts of the loans, Chosun
said.

A proposition was raised by an official of the creditor group
calling for a conversion ratio based on each creditor's total
amount of loans given to HDEC, not excepting even major creditor
banks like the Korea Exchange Bank.

The series of meetings last week saw the consistent absence of
creditors from he investment trust sector, as they maintained
their stand against the proposed conversion.


HYUNDAI ENGINEERING: Chim To Be Appointed As CEO
------------------------------------------------
Hyundai Engineering Plastic Chairman Shim Hyun-young will likely
be appointed new CEO of Hyundai Engineering and Construction
(HDEC) by the board and shareholders of the ailing builder, as
the current HDEC President Kim Yoon-kyu is expected to tender
his resignation this week, The Digital Chosun reported Friday
last week.  

On appointment, the new CEO is expected to start studying the
operations of HDEC.

Since Shim started at HDEC in 1963, he has served as a high-
ranking executive at several Hyundai units.


HYUNDAI ENGINEERING: Chung's Stake Cut By 61%
---------------------------------------------
The stake holding of Hyundai-Asan Foundation Chairman Chung
Mong-hun in Hyundai Engineering and Construction Company (HEC)
has been trimmed to 10.1 percent, or 32.70 million HEC shares,
from 25.73 percent, or 83.29 million HEC shares, The Korea
Herald reported Thursday last week, as announced by the company.

Chung transferred 15.63 percent ownership in HEC to major
creditors Korea Exchange Bank and Korea Development Bank, as it
was decided by creditors late in March. The transfer was made
through debt-to-equity conversion and capital investment
infusion, involving W1.4 trillion and W1.5 trillion
respectively.


HYUNDAI ENGINEERING: Creditors In ITS To File Lawsuit
-----------------------------------------------------
Hyundai Engineering and Construction's (HDEC) minor shareholders
and creditors in the investment trust sector (ITS) have
threatened to take court actions to quash the transfer of Chung
Ju-yung's 15.76 percent stake in HDEC to major creditors Korea
Exchange Bank and Korea Development Bank, The Digital Chosun
reported Friday last week.

The plaintiffs claim the transfer was made without shareholder
approval or that of Hyundai's directors. As a result of the
stake transfer process, they also claimed, Hyundai's minor
shareholders' voting rights were diminished.

These minor creditors and shareholders have been vocal about
their opposition to the proposed capital reduction scheme, which
is required get a third of the total votes in the shareholders'
assembly to be implemented. Creditors in the investment trust
sector also oppose the proposed debt-to-equity conversion.  


KOREA LIFE: Gov't To Infuse W1.5-Trillion
-----------------------------------------
The Korea Deposit Insurance Corporation (KDIC) is pushing
forward with its plan to infuse within the week W1.5 trillion of
public funds into Korea Life Insurance Company, but only when
the Korea Life labor union decides to abide by the terms of the
bailout, Asian Wall Street Journal reported last week, citing a
KDIC official.

According to the Journal report, the state-run deposit insurer,
which holds 100-percent ownership in Korea Life, was compelled
to bring in additional investment due to the ailing life
insurer's continued losses. KDIC already has injected into Korea
Life a total of W2.05 trillion in investments.

Korea Life is expected to be sold before the year's end through
a public auction.


L&H KOREA: Files For Bankruptcy
---------------------------------
The Korean subsidiary of Lernout & Hauspie Speech Products NV,
L&H Korea Company Limited, has filed for bankruptcy protection
in Seoul, apart from criminal charges against former employees,
including L&H former president Ju Chul Seo, and a number of
domestic banks, Asian Wall Street Journal reported, citing a
company statement.

In its complaint filed with the Seoul Prosecutor's Office, L&H
alleged that the former president of the Korean unit must have
been involved in criminal fraud and has violated his fiduciary
functions and duties.  

The same complaint pinpointed the following as its defendants:
Sam Cho, Henry Oh, and J.H. Kim, all former employees of L&H,
and officials of ChoHung Bank, Hana Bank, Hanvit Bank, and
Shinhan Bank.

The defendants, are suspected to be involved in the accounting
scam that maneuvered the company's finances.


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


HUANGSHI HEILEN: Court OKs Winding-Up Proceedings
-------------------------------------------------
The Huangshi Middle Court has approved the winding-up
proceedings of Huangshi Heilen Pharmaceutical Co Ltd, a 60
percent owned subsidiary of Lion Biotech Pte Ltd, which in turn
is a 51 percent owned subsidiary of the Lion Land Berhad.

Huangshi Heilen, a company incorporated in the People's Republic
of China, is a joint-venture company between Lion Biotech and
Huangshi Antibiotic General Factory, which manufactures
antibiotics in the form of raw material, injection products and
other packaging types. Huangshi Heilen has ceased operations
since April 1999.

Lion Biotech's contribution to the registered capital of
Huangshi Heilen of Rmb75.69 million (equivalent to RM34.72
million; at an exchange rate of RM1: Rmb2.18) is Rmb45.42
million (equivalent to RM20.83 million).

The winding-up of Huangshi Heilen is not expected to have a
material impact on the earnings of the LLB Group for the
financial year ending June 30, 2001 and the proforma net
tangible assets of the LLB Group based on the audited
consolidated balance sheet as at June 30, 2000.


INNOVEST BERHAD: Bank Accepts Proposed Settlement
-------------------------------------------------
Innovest Berhad accepted the Letter of Offer dated February 20,
2001 from Arab-Malaysian Bank Berhad in relation to the
settlement of the revolving credit facility of RM3,000,000.00
from Arab-Malaysian on February 28, 2001.

Pursuant to the terms of the Letter of Offer, Arab-Malaysian has
agreed to accept Innovest's proposed settlement. Innovest will
transfer, free from all encumbrances, ownership of 9 units of
townhouse located at Palm Springs, Port Dickson as full and
final settlement for the total amount outstanding and owing
under the abovementioned banking facility as of January 31, 2001
including accruing interest.

Execution Of Agreements

Innovest and Arab-Malaysian will execute the Settlement
Agreements, Deeds of Assignment and any other security
documentation in respect of the above in order to perfect the
Proposed Settlement.

Innovest will duly inform the Kuala Lumpur Stock Exchange of the
execution of the Agreements and/or any other further
developments in relation to same.

Background

The company's principal activity was manufacturing and sale of
nets, ropes and twines until 1984, when it sold all its assets
relating to this business and moved into credit and leasing, and
the machining and general fabrication of metal materials.

The company later diversified into power electronics, fast food
business (Kentucky Fried Chicken or KFC), manufacture of
activated bleaching clay and gypsum products, and poultry
breeding and feed-milling.

Innovest then divested subsidiaries that were no longer
synergistic with it's core businesses via a reorganization
exercise. This included the disposal of its entire stake in KFC.

In December 1995, Innovest completed a series of restructuring
exercises, which involved a capital reconstruction scheme and
the acquisition of three property-based companies as well as the
wood-based business of Sim Hoe Wood Industry.

This transformed Innovest into an entity with core businesses in
property development and timber.

Innovest expanded its property and timber operations in 1996,
through participation in a multi-billion dollar land
privatization project in Bagan Datoh, Perak, and in a timber
concession covering more than 800,000 acres of forest in Congo,
Africa.

However, Innovest revisited the viability of the Bagan Datoh
project and in 1998 decided against going ahead. For the African
investment, the Group's operations were adversely affected by
the civil war. In view of the uncertainties, the costs of
investments and fixed assets in Africa have been substantially
written off.

On the back of difficult economic conditions, Innovest had, in
January 2000, proposed a comprehensive restructuring scheme
comprising capital reduction, debt conversion and capital
raising.

As of September 2000, approvals from the relevant authorities
are still pending. The completion of the scheme, expected by the
end of third quarter 2001, will see Innovest concentrating on
its immediate core business of processing timber and wood-based
related products for the export market.


JASATERA BERHAD: BOD Approves Revision Of Recap Proposal
--------------------------------------------------------
The Board of Directors of Jasatera Berhad has approved a
revision the company's proposed recapitalization exercise in
view of its non-compliance with the Securities Commission's (SC)
additional requirements in relation to inter-alia, the net
tangible assets backing of the company pursuant to a rescue and
restructuring plan.

A proposed revised plan is currently being formulated to address
the SC's requirements. In addition, the Board is concurrently
seeking the approvals of the financial institution lenders for a
Supplemental Debt Settlement Agreement pursuant to the
finalization of the Proposed Revised Scheme.

The earlier Debt Settlement Agreement had expired March 5, 2001
and the announcement was made on the even date.

Pursuant to paragraph 5.5 of Practice Note 4 of the KLSE's
Listing Requirement, Jasatera will be seeking the approval of
the KLSE for an extension of time until August 26, 2001 to make
the necessary announcement in respect of the Proposed Revised
Scheme.

Jasatera engages in construction of commercial and industrial
buildings and civil engineering works. Its subsidiaries are
involved in contracting for general building and civil works and
property development.

The company has participated in various construction projects
including the 88-storey Petronas Tower, KLIA and Commonwealth
Sports Centre in Bukit Jalil.

In September 2000, the company proposed to undertake a debt
settlement scheme involving a capital reduction and a rights
issue.


L&M EAST: Court Grants Winding Up Order
---------------------------------------
L & M Corporation (Malaysia) Berhad announced Thursday last week
that the High Court of Sabah & Sarawak at Bintulu has granted a
winding up order to L&M East Malaysia Sdn Bhd on April 20, 2001.

The Board of LMCM has no intention to appeal against the winding
up order.

Background

On May 29, 2000, the High Court granted the company a
restraining and stay order pursuant to section 176 of the
Companies Act, 1965 which has been extended.

On November 22, 2000 the company filed an application for
another extension for a further period of 90 days from December
1, 2000 to February 28, 2001.

Meanwhile, L&M proposes to undertake a restructuring scheme that
entails the following measures:

(i) transfer of its listing status to Eastern Atlas Bhd (EAB), a
newly incorporated company;

(ii) disposal of the entire equity interests in L&M Geotechnic
Sdn Bhd (LMG) and L&M Instrumentation Sdn Bhd (LMI) to EAB,
rights issue;

(iii) composite scheme of arrangement with financial
institutions and trade and other creditors of L&M and/or LMG
and/or the subsidiaries of L&M with corporate guarantees from
L&M encompassing five separate schemes of arrangement;

(iiii) acquisition by EAB of the entire equity interests in
Satujaya Sdn Bhd, Kayman Integrated Sdn Bhd and Vistashine Sdn
Bhd;

(iiiii) liquidation of the remaining subsidiaries of L&M,
excluding LMG and LMI; and

(iiiiii) listing of EAB on KLSE.

L&M and its companies had mainly provided specialized
engineering and construction services. Currently, other than the
Pelabuhan Tanjung Pelepas Project undertaken by L&M Geotechnic
Sdn Bhd, there are neither any on-going projects nor new
projects secured by other subsidiary companies.

Subsidiaries L&M Piling Sdn Bhd and L&M Prestressing Specialist
Sdn Bhd were wound up by creditors on June 1, 2000 and July 5,
2000 respectively.


MALAYAN BANKING: SC OKs RM1-B Bonds Program
-------------------------------------------
Malayan Banking Berhad announced that the Securities Commission
(SC) had on 18 April 2001 approved Maybank's Subordinated Bonds
Program of up to RM1.0 billion.

The net proceeds of the sale of the Bonds will be used for
general banking purposes.

Terms of the Bonds Issue

Description of the Bonds

Issue: RM500.0 million aggregate principal amount Subordinated
Bonds (subject to an option by Maybank to increase the issue up
to an aggregate principal amount of RM1.0 billion).

The Bonds will be unsecured subordinated obligations of Maybank.
The Bonds will qualify as Tier II capital of Maybank for
purposes of Malaysian capital adequacy regulations.

Issue Price: The Bonds will be issued at par.

Subordination: The Bonds will constitute unsecured obligations
of Maybank, subordinate in right and priority of payment, to the
extent and in the manner provided in the Bonds, to all deposit
liabilities and other liabilities of Maybank except those
liabilities which by their terms rank pari-passu in right of and
priority of payment with or subordinate to the Bonds. The Bonds
will, in the event of a distribution of assets in the winding-up
or liquidation of Maybank, rank senior to the share capital of
Maybank.

Interest Deferral: No.

Tenure: 10 years from issue/drawdown date on a 10 Non-callable
(NCL) 5 basis.

Redemption at the Option of Maybank: Maybank may redeem in whole
but not in part of the Bonds any time on or after the fifth year
from Issue Date at 100 percent of the principal amount together
with accrued interest.

Final Redemption: Unless previously redeemed, purchased and
cancelled, the Bonds will be redeemed at their principal amount
together with accrued interest on the final maturity date.

Coupon: The Bonds will bear coupon at the rate to be determined
by a book-building process being undertaken by the Bookrunner.
The coupon rate shall be stepped up by 100 basis points per
annum from the beginning of the sixth year and such rate, as
stepped up will be applicable throughout the remaining tenure of
the Bonds until final maturity date.

Coupon Payment Date: Payable semi-annually in arrears from the
date of issue of the Bonds with the last coupon payment to be
made on the maturity dates.

Form and Denomination:

(1) The Bonds will be in bearer form and in the denomination of
RM1,000,000 each.

(2) The Bonds will be represented by a Global Certificate to be
deposited with BNM and will be traded under the Scripless
Securities Trading System maintained by BNM.

Mode of Issue: Book-building without prospectus. The Bonds will
not be listed on the Kuala Lumpur Stock Exchange.

Trading of Bonds: The Bonds shall be tradable on the secondary
market on a willing-buyer willing-seller basis under the
scripless book-entry securities trading and funds transfer
system known as "Real Time Electronic Transfer of Funds and
Securities" operated and managed by BNM.

Rating: The Bonds issue has been assigned a rating of AA2 by
Rating Agency Malaysia Berhad.

Selling Restrictions: The Bonds shall not be offered or sold,
directly or indirectly other than to persons falling within any
one of the categories of persons or in the circumstances
specified in Schedules 2, 3, 4 and 5 of the Securities
Commission Act, 1993 of Malaysia (as amended from time to time).

Enforcement Events: If the principal of, or interest on, any
Bond is not paid within 14 days after it is due, the holder of
such Note may, at its discretion and without further notice,
institute such proceedings as it chooses to enforce the
obligations of Maybank under such Bonds and may institute
proceedings in Malaysia for the winding up of Maybank, provided
that such holder shall have no right to accelerate payment of
such Bonds in the case of default in the payment of interest on
such Bonds or a default in the performance of any other
covenants of Maybank in such Bond.

Payments: Payments of principal of, and interest on the Bonds
will be made by the Paying Agent on behalf of Maybank in
immediately available funds. All payments of principal and
interest by Maybank will be made after deducting or withholding
any amounts for, or on account of, any present or future taxes
or duties of whatever nature imposed by Malaysia or any
political subdivision or taxing authority thereof or therein.
Maybank will not pay any additional amounts in respect of any
such deduction or withholding for payments of principal or
interest for or on account of any such taxes or duties.

Further Issues: Maybank may from time to time raise additional
subordinated debt which contain greater rights for bondholders
thereof including acceleration rights provided that such
subordinated debt ranks pari-passu in right and priority of
payment with or subordinate to the Bonds in the case of any
distribution of assets in any winding-up of Maybank.

Documentation: The issuance of the Bonds will be subject to the
negotiation and execution of documentation satisfactory to all
parties, which shall include, the following:

(1) Preliminary Information Memorandum;
(2) Trust Deed;
(3) Depository and Paying Agency Agreement;
(4) Global Bond Certificate;
(5) Legal opinion from the legal counsel of the Lead Arranger;
and
(6) Commitment Letters.

In view of the selling restrictions stated above, it is to be
noted that the Trust Deed will not comply with the Guidelines on
the Minimum Contents Requirements for Trust Deeds issued by the
Securities Commission and sub-division 1 of Division 4 of Part
IV of the SCA, section 92 of sub-division 2 of Part IV of the
SCA and sections 72, 74, 75 76, 77, 78, 80, 81 82, 84, 86, 87,
subsections 89(4) and 89(5) of Division 4 of Part IV of the SCA
shall not apply.

The Bonds will qualify as Tier II capital of Maybank for
purposes of Malaysian capital adequacy regulations.

The Bonds will not have any effects on the:

(i) issued and paid-up capital;

(ii) substantial shareholdings structure; and

(iii) dividend rate of Maybank.

The Bonds should not have any material effects on the:

(i) net tangible assets based on the latest consolidated audited
accounts for the financial year ended June 30, 2000; and

(ii) earnings for the financial year ending June 30, 2001 of
Maybank.

Bank Negara Malaysia's approval was obtained on March 16, 2001
in respect of the Bonds issue which will be unsecured
subordinated obligations of Maybank and that the Bonds will
qualify as Lower Tier II capital of Maybank for purposes of
Malaysian capital adequacy regulations.

The SC's approval obtained on April 18, 2001 is subject to the
following:

(i) any subsequent changes to the proposed terms and conditions
approved by the SC shall require the approval of the SC;

(ii) to forward a copy of the Facility Maintenance File to the
SC and Bank Negara Malaysia ("BNM") prior to the issuance of the
Bonds;

(iii) to forward a copy of the Trust Deed and rating rationale
to the SC prior to the issuance of the Bonds;

(iv) to inform the SC of the coupon rate of the Bonds once the
said rates has been fixed prior to the issuance of the Bonds;

(v) full disclosure to the investors on the relationship between
Aseambankers and Maybank; and

(vi) full disclosure to the investors, the relevant authorities
and on the Bond Information and Dissemination System known as
BIDS on the selling restriction of the Bonds.

The availability of the Bonds issue would nonetheless be subject
to the execution of the relevant documents for the Bonds issue
and the receipt of purchase commitments of not less than RM500.0
million nominal value of the Bonds.

None of the directors, substantial shareholders and/or person
connected to the Directors and/or substantial shareholders of
Maybank has any interest, direct or indirect, in the Bonds
issue.

The Adviser and Lead Arranger for the Bonds is Aseambankers
Malaysia Berhad.

The Bookrunner for the Bonds is Aseambankers Malaysia Berhad.

The Programme Agent for the Bonds is Aseambankers Malaysia
Berhad.


ZAITUN INDUSTRI: Faces Winding Up Petition
------------------------------------------
Genting Sanyen Industrial Paper Sdn Bhd (GSIP) has served a
winding-up petition against Zaitun Industri Sdn Bhd (ZISB) in
the High Court of Kuala Lumpur.

The petition is in respect to the alleged sum of RM13,454.79 due
and owing by ZISB to GSIP for goods sold and delivered by GSIP.
The petition was presented by GSIP without first obtaining a
judgement and the debts is disputed.

On September 18, 2000, GSIP served a notice under S218 of the
Companies Act to ZISB demanding payment of RM13,454.79.

The hearing of the winding-up petition will be at 9.00 am on  
June 14, 2001.

Based on the unaudited accounts of Zaitun Berhad as of December
31, 2000, the total cost of investment in ZISB is RM11.7
million.

GSIP's financial and operations will not be severely affected by
the said winding-up petition.

The estimate losses, if any arising from the said winding up
proceedings would not be material.

ZISB will be filing an affidavit to oppose the said winding-up
petition and move the Court to strike out the said petition.


ZAITUN INDUSTRI: Faces Winding Up Petition
------------------------------------------
Maxseal Sdn Bhd has served a winding-up petition against Zaitun
Industri Sdn Bhd (ZISB) in the High Court of Kuala Lumpur.

The said petition is in respect of the alleged sum of
RM107,054.34 due and owing by ZISB to Maxseal for goods sold and
delivered by Maxseal.

The petition was presented by Maxseal without first obtaining a
judgement and the debt is disputed.

On December 7, 2000,Maxseal served a notice under S218 of the
Companies Act to ZISB demanding payment of RM107,054.34.

The hearing of the winding-up petition will be at 9.00 am on  
June 22, 2001.

Based on the unaudited accounts of Zaitun Berhad as of December
31, 2000,the total cost of investment in ZISB is RM11.7 million.

ZISB's financial and operations will not be severely affected by
the winding-up petition.

The estimate losses, if any arising from the said winding up
proceedings would not be material.

ZISB will be filing an affidavit to oppose the said winding-up
petition and move the Court to strike out the said petition.


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


NATIONAL BANK: NPL Stands At P40.29-B
-------------------------------------
Philippine National Bank's (PNB) non-performing loans totalling
P40.29 billion as of March 23, comprising 40 percent of the
bank's total loan portfolio, Asian Wall Street Journal reported
Thursday last week. This is a 15 percent drop from the NPL
figure recorded in September of last year.

According to the report, citing a newspaper advertisement, PNB
posted a net loan portfolio of P80.33 billion and deposits
amounting to P120.79 billion, as of the same date. It also has
allocated P818 billion for its general loan loss provision to
meet the central bank's requisite of P14.74 billion for specific
loan loss reserve.


NATIONAL BANK: Delinquent Account Investigated
----------------------------------------------
The Philippine National Bank (PNB) is probing into a delinquent
account involving a P3.6-billion loan granted by PNB's Hong Kong
branch to "G.T. Pe¤a", a transaction the bank suspected to be
made under "spurious circumstances" and in "favorable terms" as
the bank learned the loan is undercollateralized, Business World
reported Friday last week. The account, as of the first quarter,
comprises 9 percent of the bank's P40.29 billion non-performing
loan portfolio (NPL).

Pe¤a is reportedly a Chinese businessman engaged in importing
Kolin air-conditioning units and fertilizers.

The account has gone unpaid since a part of the loan was
restructured three years ago listing the borrower's Hong Kong
properties as collateral.

The bank, currently, is considering filing administrative and
criminal charges against PNB officials who were involved in the
said transaction, as recommended by the central bank, said
sources close to the investigation.

An official at the central bank said, "We're not sure why (PNB
majority owner) Lucio C. Tan is not going after (G.T. Pe¤a)."


URBAN BANK: Reopening Planned In Next Half
------------------------------------------
Export and Industry Bank, which partners with National
Association of Urban Depositors and Creditors (Naud) in the
proposal to rehabilitate Urban Bank, are keeping their hopes
high in regard to the possibility of reopening Urban Bank within
the next half of the year, The Philippine Star reported Friday
last week.

Naud officer Jun Cadavida told Star, "I do not see any reason
why the stakeholders and depositors will not agree to the
proposed rehabilitation plan of ExportBank since it is similar
to the one presented by the Bank of Commerce." The proposed
rehabilitation plan of Bancommerce, which later backed out of
the negotiations, earned the nod of the Philippine Deposit
Insurance Corporation, the appointed liquidator, and majority of
the Urban Bank's depositors.

Exportbank's rehabilitation plan suggests the swap of 25 percent
of the deposits totaling P3 billion held by big depositors, like
Manila Electric Company, Petron Corporation, and San Miguel
Corporation, for preferred non-voting shares. The remaining
amount, the plan proposes, is withdrawable within three years.

On its end, NAUD is doing its rounds nationwide convincing
depositors to allow the conversion of 10 percent of their
deposits into equity, while the rest could be restructured in a
three-year period.


VICTORIAS MILLING: Ma¤alac Asks SEC To Drop Charges
---------------------------------------------------
Victorias Million Company (VMC) President Manuel Ma¤alac is
urging the Securities and Exchange Commission (SEC) to dismiss
the contempt charges filed against him by the VMC's management
committee (ManCom), citing that the complaint as lacking merit
and was raised allegedly with hidden agenda, Business World
reported Wednesday last week.

The complaint filed against Ma¤alac seeks to charge him with
contempt for misrepresenting himself as the company's president
especially in his liaison with the troubled sugar firm's
creditors.

On his end, Ma¤alac said the hearing panel has lost jurisdiction
over the charges against him since the case regarding VMC's
corporate rehabilitation is already with the commission en banc,
the highest decision-making body of SEC.


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


CAPITALAND: Sells Stakes To Hotel Plaza Limited
-----------------------------------------------
Hotel Plaza Limited, (HPL) has entered into a conditional
agreement with CapitaLand Limited (CL) to acquire, free from
encumbrance, interests in three hotels located in China, Vietnam
and Myanmar for an aggregate consideration of US$82 million. The
anticipated date of completion is July 31,2001.

Under the Sale & Purchase Agreement signed on 26 April 2001, HPL
will acquire:

1. The entire issued and paid-up capital of the following
investment holding companies:

(i) Suten Investment & Development Pte Ltd (SIDPL);

(ii) SGN Investment Pte Ltd (SGNIPL);

(iii) Yangon Investment Pte Ltd (YIPL);
which are incorporated in Singapore, and

(iv) Castle Star Developments Limited (CSDL), a company
incorporated in the British Virgin Islands which is to be
acquired by CL on or prior to completion; and

2. All shareholders loans extended by CL to these companies and
their subsidiaries.

SIDPL and SGNIPL collectively have an 82.7 percent interest in
Suzhou Wugong Hotel Co Ltd, a company incorporated in the
People's Republic of China (PRC) and which owns the 328-room
Sheraton Suzhou Hotel & Towers at 388 Xinshi Road, Suzhou,
Jiangsu, Peoples' Republic of China.

The property sits on a 31,000 meters square site which is held
on a 50 year leasehold from 1 October 1994. Opened in September
1998, the hotel comprises a high quality establishment built in
Ming Dynasty style.

YIPL is an investment holding company with a 95 percent interest
in the capital of Yangon Hotel Ltd (YHL) a company incorporated
in the Union of Myanmar and which owns the 359-room Hotel
Equatorial Yangon, located at the corner of Alan Pya Phaya Road
(Signal Pagoda Road) and Yaw Min Gyi Road (York Road), in close
proximity to the central business district and famous cultural
attractions.

The hotel sits on a 7,410 meters square site on a 30 year lease
from May 1997 with options for extension. Opened in 1997, the
Hotel Equatorial Yangon is an 8 storey V-shaped tower above a
rectangular podium.

Prior to or on completion, CSDL shall have an 85 percent
interest in PID Investments Pte Ltd (PIPL), an investment
company incorporated in Singapore and which has a 75 percent
interest in Westlake International Company (WIC) a company
incorporated in Vietnam.

WIC's principal activity is ownership of the Meritus Westlake
Hanoi, a 322-room hotel at 1 Thanh Nien Road, Badinh District,
Hanoi, Vietnam in the scenic lake district. The property is on a
5,700 meters square site on a 48-year lease from November 1993.
Opened in 1998, the hotel rises 20 storeys and overlooks the
beautiful West Lake and the Red River.

Under the agreement, CL will set aside an aggregate amount of
US$20 million for a period of 5 years to be applied to fund any
shortfall between actual profit after depreciation but before
interest and tax and the amount of 7 percent of aggregate
investment cost to HPL in respect of the acquisition of, and
improvements to, the hotels.

The consideration for the sale and purchase will be satisfied in
the following manner:

a) A deposit of S$500,000 is payable upon execution of the
agreement; and

b) The balance after deducting the set aside sum is payable on
completion.

The purchase consideration was arrived at based on negotiations
conducted on a willing buyer and willing seller basis and will
be funded principally by bank loans.

The acquisition is not expected to have a material effect on the
net tangible assets or earnings per share of the HPL Group for
the current financial year ending December 31, 2001.

None of the directors and substantial shareholders of HPL have
any interest in the proposed acquisition.

Upon completion, HPL will own 13 hotels with approximately 4,438
rooms in the region, comprising three in Singapore, four in
Australia, two in Malaysia, two in Vietnam and one each in
Myanmar and PRC.


LIM KAH: Posts Auditors' Report
-------------------------------
Lim Kah Ngam Limited posted the following Auditors'
(PricewaterhouseCoopers) Report to the Members of the Company:

"We have audited the financial statements of Lim Kah Ngam
Limited and the consolidated financial statements of the Group
for the financial year ended 31 December 2000 set out on pages
15 to 58. These financial statements are the responsibility of
the company's directors.

"Our responsibility is to express an opinion on these financial
statements based on our audit.

"We conducted our audit in accordance with Singapore Standards
on Auditing. Those Standards require that we plan and perform
our audit to obtain reasonable assurance whether the financial
statements are free of material misstatement.

"An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by the directors,
as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable
basis for our opinion.

"The Group and Company incurred a net loss after tax of
$20,786,000 and $18,675,000 respectively for the financial year
ended December 31, 2000. The Group's and the Company's current
liabilities exceeded the current assets by $245,339,000 and
$163,143,000 respectively at December 31, 2000.

"Subsequent to the balance sheet date on March 16, 2001, the
Company has effected a debt restructuring agreement with the
Company's and the Group's bankers and other financial lenders.
Consequently, the Group's borrowings amounting to $314,285,000
as at March 16, 2001 which were overdue as a result of default
in repayments will be converted into interest bearing secured
redeemable bonds and will be repayable in accordance with the
terms and conditions set out in Note 46 to the financial
statements.

"Notwithstanding the debt restructuring agreement, the Company's
and the Group's borrowings continue to remain high in comparison
to the shareholders' funds.

"The going concern assumption on which the financial statements
are prepared is dependent on the Company's and the Group's
ability to dispose of its investment and development properties,
at amounts close to their carrying values in the balance sheet,
as well as the continued support of its bankers in order to
provide funding for continuing operations.

"If the Group and the Company are unable to raise the necessary
financing for the foreseeable future, adjustments would have to
be made to reflect the situation that the assets may need to be
realised other than in the normal course of business and at
amounts which may differ significantly from the amounts at which
they are presently recorded in the balance sheets.

"In addition, the Group and the Company may have to provide for
further liabilities that may arise and to reclassify property,
plant and equipment as current assets.

"In our opinion,

"(a) the accompanying financial statements of the Company and
consolidated financial statements of the Group are properly
drawn up in accordance with the provisions of the Singapore
Companies Act (Act) and Singapore Statements of Accounting
Standard and so as to give a true and fair view of:

"(i) the state of affairs of the Company and of the Group at 31
December 2000, the loss and changes in equity of the Company and
of the Group, and the cash flows of the Group for the financial
year ended on that date; and

"(ii) the other matters required by section 201 of the Act to be
dealt with in the financial statements of the Company and the
consolidated financial statements of the Group; and

"(b) the accounting and other records, and the registers
required by the Act to be kept by the Company and by those
subsidiaries incorporated in Singapore of which we are the
auditors have been properly kept in accordance with the
provisions of the Act.

"We have considered the financial statements and auditors'
reports of the subsidiaries of which we have not acted as
auditors, being financial statements included in the
consolidated financial statements. The names of the subsidiaries
are stated in Note 36 to the financial statements.

"We are satisfied that the financial statements of the
subsidiaries that have been consolidated with the financial
statements of the Company are in form and content appropriate
and proper for the purposes of the preparation of the
consolidated financial statements and we have received
satisfactory information and explanations as required by us for
those purposes.

"The auditors' reports on the financial statements of the
subsidiaries were not subject to any qualification that is
material to the consolidated financial statements.

"However, certain subsidiaries which depends on continuing
financial support from the Company had paragraphs in their
auditors' reports emphasizing and drawing attention to the
subsidiaries' dependence on the continued financial support from
the Company as well as the Group's bankers and that the
financial statements of those subsidiaries did not include any
adjustments that might result from the outcome of this
uncertainty.

"The auditors' reports on the subsidiaries incorporated in
Singapore did not include any comments under Section 207(3) of
the Act."


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


THAI HEAT: Trading Suspended
----------------------------
The Stock Exchange of Thailand (SET) announced four listed
companies had been subjected to rehabilitation plan preparation
and posted SP (Suspension) sign to prohibit securities trading
of those listed companies and also transferred the four listed
companies to REHABCO category since March 12, 2001.

The SET also informed a time schedule for those listed
companies' management to make prudent decision on whether to
prepare a rehabilitation plan to propose to the company's
shareholders, or to ask for a voluntary delisting, or to try
another option which will benefit to all involved in the listed
companies and report their decisions to the SET by April 11,
2001 to disclose to the public.

After that, the SET will allow trading of those listed companies
on April 12, 2001 - May 11, 2001 before suspension again on May
14, 2001 until all the delisting problems have been resolved.
However, the companies could request the SET to allow continued
trading under the REHABCO category after they completed the
conditions specified by the SET. Details of the announcement
have been disseminated on PUBLIC SIMS since March 9, 2001.

The SET has considered the companies' management decision
submitted to the SET, and will proceed as follows:

1. Allows trading of three securities, which decide to prepare a
rehabilitation plan, under the REHABCO category from April 12,
2001 to May 11, 2001 to give shareholders a chance of trading
the company's securities.

(1) Thai Heat Exchange Public Company Limited (THECO)
(2) Sanyo Universal Electric Public Company Limited (SUE)
(3) Preecha Group Public Company Limited (PRECHA)

Therefore, according to Clause 24 (3) and (6) of the regulation
on trading, clearing and settlement for listed securities 1999,
the ceiling and floor limits on the main board will be expanded
from the regular +/-30 percent to +/-100 percent of their last
trading. The new limits will be in effect on April 12, 2001.   

2.Posts an SP sign to prohibit further trading of three
securities, beginning from 14 May 2001 until the causes of
delisting are eliminated or the SET  allows  continued trading
under the REHABCO category after they completed the conditions
specified. This is by virtue of Clause 5 (5) of the SET's rules,
Conditions and Procedure of the Temporary Prohibition against
Trading of Listed Securities dated on February 9, 1995.

Those three listed companies are required to proceed as follows:

1) Appoint an independent financial advisor to assist management
in the preparation of the rehabilitation plan.

2) Co-operate fully with the independent financial advisor in
organizing a meeting to present the rehabilitation plan to
analysts and shareholders, and then also propose it to the
shareholders for approval.

3) Co-operate with the independent financial advisor in
reporting every three months to the SET on its actual
implementation progress, as compared to the rehabilitation plan
until the causes of possibly being delisted are eliminated.

In case the company submits a petition under the Bankruptcy Act,
the company is able to implement the rehabilitation plan
approved by the creditors and the court in place of the plan
approved by the company's shareholders. However, the company
still has the duty to report the SET about the implementation
progress (see No 3)).

The SET would like the companies' shareholders and general
investors to follow up the proposed rehabilitation plan prepared
by those companies and their financial advisors which will be
presented to their shareholders meetings or the Central
Bankruptcy Court.

3. Still post SP sign to prohibit securities trading on Central
Paper Industry Public Company Limited (CPICO) because the
company has asked for an extension period to report its decision
which is expected to be made by April 30, 2001. The SET will
allow trading of its securites when it has reported the
information clearly.


QUALITY HOUSES: Announces Results Of AGM
----------------------------------------
The Annual General Meeting of Shareholders No. 1/2001 of
Quality Houses Public Company Limited held April 10, 2001,
10.00 a.m., at the Office of the company, located at M Floor
Q. House Building, 11 South Sathorn Road, Khet Sathorn, Bangkok,
has resolved as follows:

1. That the Minutes of the Annual General Meeting of
Shareholders
No. 1/2000, held on April 28, 2000, be certified.

2. That the company's operating results for the year 2000 be
acknowledged and certified, and the Directors' Report be
approved.

3. That the audited financial statements (including balance
sheet and profit and loss statements) of the company for the
year 2000 be approved.

4. That no distribution of dividends and no appropriation of
profits for the 2000 operating results be approved, since the
company still incurred accumulated loss.

5. That the rotated directors, i.e. Chaiwat Hutacharoen,  
Joompol Meesook and Mrs. Suwanna Buddhaprasart, be re-elected as
directors of the Company and the directors' remuneration of up
to Bt5,000,000, be approved.

6. That the appointment of Songdej Pradissamanont and/or Sophon
Permsiriwallop and/or Miss Roongnapa Lertsuwankool of Ernst &
Young Office Limited, as the company's auditors for the year
2001 and their remuneration of Bt750,000, be approved.

7. That the cancellation of the resolution of the Extraordinary
General Meeting of Shareholders No. 1/1999, held on September
27, 1999 regarding the allocation of 49,342,009 shares by
private placement and a reduction of the registered capital by
canceling 159,860,424 authorized but unissued shares at the par
value of Baht 10 each, totaling Bt1,598,604,240 from the
existing registered capital of Bt10,310,000,000 to
Bt8,711,395,760 divided into 871,139,576 shares at the par value
of Bt10 each and the amendment to Clause 4. of the Memorandum of
Association as to reflect the reduction of the registered
capital, be approved.

After the reduction of the registered capital above, there are
330,000,000 shares reserved for the exercise of warrants issued
under the resolution of the Extraordinary General Meeting of
Shareholders No. 1/1999 on September 27, 1999.

8. That the issue of 270,569,788 units of warrants with the
indicative terms set out below be approved:

Type: Warrants to purchase new ordinary                                     
shares of  the Company.  (Warrants # 3)
Amount:   270,569,788 units.

Offering/Allocation: To those who have subscribed for new
                  
ordinary shares under the rights issue, excess entitlement and
unsubscribed rights shares as specified in item no. 10(2) below
at the ratio of 1 new share: 2 units of warrants.

Term: 5 years commencing from the issue date of warrants.
Exercise ratio: One unit of warrant: one ordinary share.
Offering price: Baht zero.
Exercise price: Bt5 for each new ordinary share.
Exercise period:  Every three months.
Offering period:  To be issued after the approval from the
Securities and Exchange Commission has been obtained.
Listing: The warrants will be listed on the Stock Exchange of
Thailand, subject to applicable rules and regulations.

The terms, conditions and offering details of the above warrants
including reasons for which new shares must be reserved for the
adjustment to the exercise price or the exercise ratio of the
warrants or both will be determined at the discretion of the
Board of Directors.

9. That an increase of the registered capital of the company of
another Bt5,711,395,760 by an issue of 571,139,576 new ordinary
shares from the existing registered capital of Bt8,711,395,760
to the new registered capital of Bt14,422,791,520 divided into
1,442,279,152 ordinary shares at the par value of Bt 10 each and
the amendment to Clause 4 of the Memorandum of Association as to
reflect the increase of the registered capital, be approved.

10. That the allocation of 571,139,576 new ordinary shares at
the par value of Bt 10 each as a result of the increase of the
registered capital be made as follows:

(1) To allocate up to 135,284,894 new ordinary shares to
Government of Singapore Investment Corporation Pte Ltd. (GIC) by
way of private placement in accordance with the Notification of
the Securities and Exchange Commission re: application and
permission for the offer of new shares at the offering price of
Bt3 per share. The details of the offer such as conditions,
subscription period and other relevant details, will be
determined at the discretion of the Board of Directors.

Any unsubscribed shares may be offered in one or several
tranches from time to time by way of private placement at the
offering price per share of Bt3 or more in accordance with the
Notification of the Securities and Exchange Commission re:
application and permission for the offer of new shares.  The
details of the offer such as conditions, subscription period and
offering price shall be determined at the discretion of the
Board of Directors.

(2) To allocate 135,284,894 new ordinary shares to the existing
shareholders by way of the rights issue at the subscription
ratio of 5 existing shares to 1 new ordinary share at the
offering price of Bt3 each share and shareholders may subscribe
for excess rights shares at the same offering price. Any
fraction will be disregarded. The Board of Directors shall be
authorized to determine the terms, conditions and offering
details such as the closing date of the share register book to
determine the shareholders entitlement to subscribe for the
rights shares and the subscription period.  During the rights
offering period, the President shall be authorized to allocate
any unsubscribed shares from the rights offering to the
shareholders who subscribe for excess rights shares on the pro
rata basis (by reference to the total number of excess rights
shares and the total number of shares subscribed under the
excess entitlements).

Any unsubscribed shares remaining from the rights issue or as a
result of the fraction of shares may be offered in one or
several tranches from time to time by way of private placement
at the price of no less than the offering price under the rights
issue in accordance with the Notification of the Securities and
Exchange Commission re: application and permission for the offer
of new shares. The details of the offer such as conditions,
subscription period and offering price shall be determined at
the discretion of the Board of Directors.

(3) To reserve 270,569,788 new ordinary shares for the exercise
of warrants (WARRANTS#3) issued under item no. 8 above.

(4) To allocate 30,000,000 new ordinary shares as additional
reserve for the exercise of all types of warrants issued by the
company, which may require the adjustment of exercise price and
exercise ratio in accordance with the terms and conditions of
warrants.

If there are any remaining shares from (3) and (4) above as a
result of the warrants not being issued or exercised, these
remaining shares may be allotted at the discretion of the Board
of Directors in one or several tranches from time to time by way
of private placement at the price of no less than the offering
price under the rights issue in accordance with the Notification
of the Securities and Exchange Commission, re: application and
permission for the offer of new shares, provided that the
offering price, subscription period, procedures and conditions
of the offer shall be determined by the Board of Directors.

11. That Clause 10 of the Articles of Association in relation to
the limit on foreign shareholdings be amended to read as
follows:

Clause 10

The shares of the company may be transferred without
restriction, unless such transfer of shares would cause non-Thai
persons to hold shares in the company in excess of 40 percent of
the total issued shares in the company.

Non-Thai persons may acquire ordinary shares of the company in
excess of the restricted ratio prescribed in paragraph one of
this Article by means of:

(a) subscription of new shares offered by private placement to
qualified investors in accordance with the Notification of the
Securities and Exchange Commission re: application and
permission for the offer of new shares in accordance with the
Annual General Meeting of Shareholders no. 1/2001, held on  
April 10, 2001, or

(b) subscription of new shares offered to the existing
shareholders under the rights issue and excess entitlements in
accordance with the Annual General Meeting of Shareholders no.
1/2001, held on April 10, 2001, even though the ratio of the
non-Thai shareholdings has reached 40 percent of the total
issued shares in the Company.  However, such shareholding shall
not cause the total shareholding ratio of the non-Thai persons
to exceed 49 percent of the total issued shares in the company.

The non-Thai shareholdings exceeding 40 percent up to 49 percent
shall also apply to the case of any transfer of shares from non-
Thai persons, who have acquired new shares by means of
subscription of new shares under paragraph two to any non-Thai
persons in any stage of transfer until those shares are
transferred to Thai persons.

12. That the appointment of Chayanth Chokviriyakorn and Ravee
Mongkoltawee as new directors of the company be approved.

13. That the reduction of the company's registered and paid up
capital for the purpose of writing off accumulated losses by
reducing the par value of Bt10 each to Bt5 each be acknowledged.
The company would proceed with the obtaining of a shareholders
approval for capital reduction after completion of the rights
issue.

It was noted that the reduction of paid up capital for the
purpose of writing off accumulated loss would not adversely
affect the shareholders value but would enhance the company's
ability in declaring dividends to shareholders in the future.

14. That Clause 3 of the Articles of Association be amended to
read as follows:

Clause 3

Any provisions that are not set out in these Articles of
Association shall be governed by and constructed in accordance
with the public company law in every respect.

The company shall comply with the securities and exchange law. If
the company's securities are listed on the Stock Exchange of
Thailand, the company shall comply with the regulations,
notifications, orders or requirements of the Stock Exchange of
Thailand including requirements concerning disclosure of
information, connected transactions and acquisition or disposal
of substantial assets of the company or its subsidiaries.


QUALITY HOUSES: Announces Results Of Conversion
-----------------------------------------------
As Quality Houses Public Company Limited had announced
information regarding exercise of warrants (QH-W2) by using
electronics media (R-SIM) for the warrant holders to exercise
their warrants, the date for conversion of warrants to common
shares no. 2 was April 19, 2001.  

The company also announced that there is no any warrant
conversion by the warrant holders. As the result, there are
329,999,942 remaining warrants.


QUALITY HOUSES: Appoints Directors
----------------------------------
Quality Houses Public Company Limited announced the appointment
of Chaiyant Chokviriyakorn and Ravee Mongkoltavee as the
Directors of the company.

Shareholders of the company approved the said appointments during
the annual general meeting of shareholders held on April 10,
2001.


QUALITY HOUSES: AGM Resolves To Increase Capital
------------------------------------------------
The Annual General Meeting of Shareholders No.1/2001 of Quality
Houses Public Company Limited held on April 10, 2001 had
resolved to increase QH's registered capital from
Bt8,711,395,760 to Bt14,422,791,520 by an issue of 571,139,576
ordinary shares with a par value of Bt10 each, and resolved to
allocate up to 135,284,894 new ordinary shares to Government of
Singapore Investment Corporation Pte. Ltd. (GIC) by way of
private placement in accordance with the Notification of the
Securities and Exchange Commission, re: application and
permission for the offer of new shares, at the offering price of
Bt3 per share.

The subscription date to allocate new ordinary shares to GIC is
on April 20, 2001.  The offering price at Bt3 per share is below
Bt3.12987 per share, which is equivalent to 90 percent of the
"market price of the company's ordinary shares" (derived by the
weighted average market price of the ordinary shares on the
Stock Exchange of Thailand 5 consecutive days prior to the
subscription date, which is equal to Bt3.47763 per share).

The company considered for the adjustment of exercise price and
exercise ratio by pursuing the adjustment formulas as specified
in the offering prospectus of warrants certificates #2 issued by
Quality Houses Public Company Limited effective on April 8, 2000
section 1 clause 1 Adjustment Conditions (Kor) as follows:

1. Adjustment of exercise price and exercise ratio Under the
conditions of warrants in clause 1 (Kor), when the company
offers for sale ordinary shares to existing shareholders and/or
to the public and the average price per share of those newly
issued ordinary shares below 90 percent of the "market price of
the company's ordinary shares", the adjustment of the exercise
price and exercise ratio shall become effective immediately from
the first day the purchaser of ordinary shares is entitled to
subscription of newly issued ordinary shares (the first day of
posting a XR sign) in case the right offering to existing
shareholders, and/or from the first day of sale of newly issued
ordinary shares to the public, as the case may be.    

- The exercise price will be adjusted according to the following
formula:

Price 1 = Price 0 * [(A * MP) + BX] [MP (A + B)]

- The exercise ratio will be adjusted according to the following
formula:

Ratio 1 = Ratio 0 * [MP (A + B)] [(A * MP) + BX]

Whereas;
Price 1 means the new exercise price after adjustment
Price 0 means the existing exercise price before adjustment
Ratio 1 means the new exercise ratio after adjustment
Ratio 0 means the existing exercise ratio before adjustment
MP      means the "market price of the company's ordinary
Shares" which is equal to the weighted average market price of
the ordinary shares on the Stock Exchange of Thailand 5
consecutive days prior to the date fixed for calculation (the
weighted average price is equal to the value of the total shares
traded and divided by the number of shares traded) A means the
number of fully paid-up ordinary shares on the day prior to the
closing date of a register book for the right to subscribe newly
issued ordinary shares in case of sale to existing shareholders
and/or the date prior to the first day of sale newly issued
ordinary shares to the public, as the case may be.

B means the number of newly issued ordinary shares for sale to
existing shareholders and /or to the public.

BX means the proceeds received from the offering less the
underwriting expenses for the sale of the newly issued ordinary
shares both to existing shareholders and/or to the public.

2. The calculation of exercise price and exercise ratio

The exercise price and exercise ratio of QH warrants
certificates #2 after the private placement of newly issued
ordinary shares will be as follows:

- The adjusted exercise price will be as follow:
  Price 1 =  6.25 * [(541,139,576 * 3.47763) + 405,854,682]
             [3.47763 * (541,139,576 + 135,284,894)]
        = Bt6.07832 per share

- The adjusted exercise ratio will be as follow:
  Ratio 1 = 1.0 * [3.47763 * (541,139,576 + 135,284,894)]
            [(541,139,576 * 3.47763) + 405,854,682]
        =   1.02824 shares per 1 unit of warrant

3. The effective date of the adjusted exercise price and
exercise ratio

The adjusted exercise price and exercise ratio of QH warrants
certificate #2 shall become effective immediately from April 20,
2001 onward.


QUALITY HOUSES: BOD Sets Closing Date
-------------------------------------
The Annual General Meeting of Shareholders No. 1/2001 of Quality
Houses Public Company Limited, held on April 10, 2001, has
approved to allocate 135,284,894 new ordinary shares to the
existing shareholders by way of the rights issue at the
subscription ratio of 5 existing shares to 1 new ordinary share
at the offering price of Bt3 each share and shareholders may
subscribe for excess rights shares at the same offering price.
Any fraction will be disregarded. The Board of Directors is
authorized to fix the closing date of the share register book to
determine the shareholders entitlement to subscribe for the
rights shares and the subscription period.

The Board of Directors' Meeting No. 6/2001, held on April 23,
2001, has resolved as follows:

1. the share register book be closed to determine the
shareholders entitlement to subscribe for the rights shares on  
May 10, 2001 (XR); and

2. the subscription period will be between May 25-31,
2001(business days).


QUALITY HOUSES: Closing Of Book Slated In May
---------------------------------------------
With reference to the report of the resolutions of the Board of
Directors' Meeting No. 6/2001, on April 23, 2001, that the share
register book will be closed to determine the shareholders
entitlement to subscribe for the rights shares on May 10, 2001
(XR) and the subscription period will be between May 25 to 31,
2001(business days).

Quality House announced that the shareholders who subscribe for
the rights shares would be allotted free warrants (Warrants #3)
at the ratio of 1 new share: 2 units of warrants, according to
the resolution of the Annual General Meeting of Shareholders No.
1/2001, held on April 10, 2001.


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

Troubled Company Reporter -- Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick,
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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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