TCRAP_Public/010511.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

                  Friday, May 11, 2001, Vol. 4, No. 93



CHIERON HOLDINGS: Posts Progress Report
HARRIS SCARFE: Strong Buyer Interest Underpins Future
JOYCE CORP: Creditors Appoint Receiver, Manager
RECKON LIMITED: Chair's Address To S-Holders
WOODSANDS PTY: Gets Notice Of Lease Termination
WOODSANDS PTY: Receiver Appointed
WOODSANDS PTY: 100-Year Lease Terminated

C H I N A   &   H O N G  K O N G

ALIVE NETWORKS: Insists Finances Sound
CHINA RESOURCES: No Disposal of HKCB Interests Planned
CHINA RESOURCES: Trading Suspended
KIN DON: Court Dismisses Winding Up Petition
KING PACIFIC: Enters Into Sale And Supplemental Deals
TOM.COM: Q1 Losses Balloons To HK$70.33-M


BANK DANAMON: Lawsuit On Horizon
SUMALINDO LESTARI: Wants Loan Restructuring Renegotiated  


NIPPON COLUMBIA: Enters Into Capital Tie-Up
TOKUYO CITY: Ex-Execs OK To Repay Y90-M


DAEWOO MOTOR: Creditors Oppose GM Bid
HYUNDAI ENGINEERING: Creditors Plan Bailout Expansion
HYUNDAI ENGINEERING: S-Holders Panel Seeks Inquiry


CSM CORP: Reports Status Of Default
GADANG HOLDINGS: Settlement Reached With Berjaya Land
GADANG HOLDINGS: SC Rejects Appeal For Reinstatement
SPORTMA CORPORATION: SC Approves Extension  
SYARIKAT BINAAN: Posts Response To SET Query
TAIPING CONSOLIDATED: Restructures To Positive NTA


METRO PACIFIC: Posts P2.25-B In Net Income
NEGROS NAVIGATION: Works Out Turnaround PLan
REYNOLDS PHILS: SEC Upholds Decision On Stock Anomaly


FHTK HOLDINGS: Update On Debt Restructuring
I-ONE.NET: Posts Proforma Half-Year Results


EKKAPAT FINANCE: Bankruptcy Process Rolls On

     -  -  -  -  -  -  -  -  -  -


Analytica Limited announces the resignations of Patricia Kelly
and Roderick Tomlinson as directors of the company effective  
May 2, 2001, due to other business commitments.

CHIERON HOLDINGS: Posts Progress Report
Chieron Holdings Limited posted the following progress report
and notice of Annual General Meeting:

Woodsands Pty Ltd is a wholly owned subsidiary of the Company
and holds a 100-year Term Lease from the State Government
(Department of Natural Resources) under the Land Act. That lease
is still on foot. Discussions have recently been held with the
Deputy Premier of Queensland, and with officers of the
Department of Natural Resources, State Treasury, and the
Department of State Development.

There are a number of issues emanating from the various parties
which really all fall into the category of "when will the cruise
ship terminal be built?"

Following meetings held to date, it is the understanding of the
Group and the Company that no preemptive action will be taken by
the various Government Departments unless and until further
discussions are held with the Group and the Company.

One of the significant issues which has prevented the Group and
the Company from being able to put funding in place to date, and
to access the approved Infrastructure Tax Offset Borrowing
Scheme, has been the continued registration by ASIC of two
alleged Thewton Nominees Pty Ltd fixed and floating charges over
the total assets of the Company.

Thewton Nominees Pty Ltd is a related party of Barry Kevin
O'Rourke, a non-executive Director of the Company, and both are
the respondents in Supreme Court action S11510/99 previously
reported and announced. That action continues, although in the
latest Defense and Counterclaim reference to the alleged charges
had been deleted.

The Company has uncovered much information from Company records
over the past 10 years, which allows it to contend that the
alleged fixed and floating charges should not be registered on
the Charges Registry at all, including, inter alia, confirmatory
action before the Supreme Court of Western Australia in 1990.

The Company, for its part, is confident that with good will
there is ample scope for all funding and leasing issues which
may be aired to be constructively concluded with new deadlines
or milestones to be recognized and achieved.

The Company will continue to work with good faith to achieve
that end.

Company Assets

Consistent with earlier announcements, the company has continued
to pursue the real situation with respect to the assets of the

The Company has previously announced that the 1998/99 accounts
and the Half Yearly Review accounts for the period ended 31
December 1999 are inaccurate. Part of those inaccuracies are
with respect to the amounts shown in those financial accounts as
owing to O'Rourke related Companies and with respect to any
secured nature of those debts.

Following an analysis of the proceeds of the Company owned
development known as Sanctuary Lakes Unit Development (a 78 Unit
development at Currumbin in Queensland), the Company is now
aware that the mortgage with Suncorp-Metway was paid in full on
10 December 1999.

O'Rourke has previously told the Company at Board level that the
project would not make a profit.

The Company believes that in excess of $1.25M owing to the
Company was diverted to others sources at the time.

Appropriate complaints have been lodged by the Company with the
Queensland Law Society, the Australian Securities and
Investments Commission and the Commissioner of Police.

The Law Society has advised that it is seeking an explanation
from a firm of solicitors whilst ASIC and the Commissioner of
Police have advised that they are investigating the matters

Notices of Demand totaling $1.4 Million have been delivered to a
firm of Solicitors, O'Rourke and his related party companies
Thewton Nominees Pty Ltd and Como Investments Limited, as well
as other Directors of those companies.

Share Transfer Form

Supreme Court action S11510/99 relates in part to an incomplete
share transfer form dealing with 78.16% of the shares in the
Company (held by Cruison Pty Ltd) being executed under threats
and showing the transaction taking place for $1.00 with the name
of the transferee left blank.

It is the understanding of the Company that a Police
investigation file on this matter is being forwarded to the
Director of Public Prosecutions.

Annual General Meeting

The Company was refused permission by ASIC to extend its
1999/2000 AGM to May 31, 2001 in the particular circumstances in
which it found itself. The Company lodged an appeal against that
decision with the Administrative Appeals Tribunal. The decision
of the Tribunal by consent is attached. The Company is looking
forward to being able to have lifted the suspension of trading
of its shares post the AGM that is planned for May 30, 2001.

At a Board meeting on March 9, 2001, the Company resolved to
pursue action against the former accountant of the Company and
the former Auditor Of the Company.

Registered Office & Principal Place Of Business

The Directors decided to advise ASIC that from the Board Meeting
on March 9, 2001 the above should be shown as 21 Hercules
Street, Hamilton, 4007. The appropriate form has been lodged
with ASIC.

Chieron Holdings Limited (Company) announced that its Annual
General Meeting will be held at the Registered Office of the
Company, 21 Hercules Street, Hamilton, Brisbane, on Wednesday,
May 30, 2001 at 10.00 am to consider and, if thought fit, pass
the following resolutions:


1. That the minutes of Annual General Meeting held on November
30, 1999 be adopted.

2. That the Profit and Loss Account and Balance Sheet of the
Company together with the Consolidated Accounts of the Company
and its controlled entities and the reports of the Directors and
Auditors thereon for the financial year ended June 30, 2000 be
and are hereby received and adopted.

3. That PJJ Blythe, having previously been appointed as a
Director and, being eligible, offers himself for election in
accordance with Article 18.5 of the Constitution of the Company.

4. That O'Rourke, having previously been appointed as a Director
and, being eligible, offers himself for election in accordance
with Article 18.7 of the Constitution of the Company.

HARRIS SCARFE: Strong Buyer Interest Underpins Future
The Receivers and Managers of Australian retail icon Harris
Scarfe have announced that none of the chain's 35 stores will
close in the near future.

Bruce Carter and John Spark of corporate recovery and turnaround
specialists Ferrier Hodgson say the decision to keep all Harris
Scarfe stores trading has been underpinned by:

* support from its landlords in the form of renegotiated short-
term rentals for a number of the chain's 35 stores nationally,

* strong ongoing trading performance, and

* very high levels of interest from potential purchasers of the
department store group in Australia and overseas.

Investment bank Hindal Corporate is well advanced on a worldwide
marketing campaign to find a buyer for Harris Scarfe and has
received more than 55 registrations of interest over the past
three weeks - including five overseas retailers looking to enter
the Australian market.

"Our decision not to close any Harris Scarfe stores in the short
term stems from the strong interest from potential purchasers;
the support of landlords, customers and suppliers; and the fact
that we have worked successfully with staff and suppliers since
our appointment a month ago to rebuild and maintain stock levels
to ensure it's business as usual at Harris Scarfe," Carter said.

"The strength of enquiries from potential purchasers shows that
many recognize the strategic value of purchasing the chain
intact and reflect the fact that along with David Jones and
Coles-Myer, Harris Scarfe is one of the three largest department
store groups in Australia."

Shoppers spent more than $400 million in Harris Scarfe stores
across Australia in 1999-2000, supporting the employment of
approximately 2,600 staff in all capital cities and a number of
major regional centers.

"The staff of Harris Scarfe have rallied strongly and together
with the Receivers and Managers have worked hard to ensure
continuity of supply and service," Carter said.

"What some customers may not realize is that they can continue
to use their Harris Scarfe charge cards and take advantage of
the chain's normal lay-by facilities."

Hindal Corporate Director, David Beatty said the firm was
confident of securing a buyer for the whole of Harris Scarfe
before the end of next month.

"We have been very pleased by the high level of interest from
more than 55 potential purchasers in Australia and overseas and
are optimistic of negotiating the sale of the intact Harris
Scarfe chain," Beatty said.

"Overseas interest has come from the USA, UK, South Africa and

"Key selling points include the enviable position as one of
Australia's leading department store groups which Harris Scarfe
has built up over more than 150 years; the underlying trading
strength of the business; and the support it has among
Australian shoppers which has been very strongly demonstrated
over the past month, particularly.

"Combined, these factors provide a unique opportunity to enter
the Australian department store market, underpinning the strong
interest we've received in the sale process."

JOYCE CORP: Creditors Appoint Receiver, Manager
Joyce Corporation Limited announced that Barry John Honey and
Robyn Beverley McKern of KPMG have been appointed joint
receivers and managers of Joyce Corporation Ltd and its
following subsidiaries:

Joyce Healthcare Group Pty Ltd
Joyce Rural PtyLtd
Marfoam Pty Ltd
Joyce Industries Pty Ltd
Bedding Investments Pty Ltd
Sierra Bedding Pty Ltd

RECKON LIMITED: Chair's Address To S-Holders
The following is the Chairman's address to Reckon Limited
shareholders, at the Annual General Meeting:

"I think that every equity investor is fully aware that year
2000 saw a significant upheaval in the dotcom or technology
sector of the market on a global basis. The sharp depreciation
of the NASDAQ index in April 2000 was followed by much negative
sentiment as previously buoyant projections of profit from
Internet businesses were revised downwards, often severely.

"When traditional methods of due diligence and financial market
scrutiny were applied to the so-called new economy companies,
many were found wanting and this adversely affected all
companies in the sector.

"While our total revenues for year 2000 of $38.2 million were
nearly double that achieved in the previous year, our loss for
the year of $27.251 million is extremely disappointing.

"Early in year 2000, while concentrating on the one off
opportunity for our software business brought about by the
introduction of the GST, we continued to spend too much time and
effort on our fledgling online business which produced minimal
revenue. In spite of our starting to wind back the online
financial services business in April 2000, it incurred a loss
for the year of $8.213 million. The online loss represents 30
percent of our total loss for the year while our online revenues
only represented 3% of our total revenues over the same period.
This will not be repeated; we have learnt a tough lesson and we
expect our significantly scaled back online business will incur
a small loss in 2001.

"The outsourcing of our call center proved to be more expensive
than we had anticipated. There was an urgent need to regain
control of this key function so that we would become closer to
our customers. Bringing the call center back into Reckon reduced
our annual call center costs, improved service to customers and
enabled us to launch, with confidence, our Advantage program,
about which I will speak in moment.

"I would like to once again refer to our core software business
and the so-called one off GST opportunity. The product we
launched onto the market is great. The outsourced distribution
of our GST applicable software was poor. We are responsible for
this and to some degree we squandered a one-off opportunity.

"The impact of the problem was that we lost track of stock
levels and sales quantities through the retail stores. While
actual sales at the retail level fell sharply in the second half
of the year it was not immediately apparent to us. Lack of
visibility of actual sales to end users resulted in us
overestimating likely sales for that period and we were left
with stock levels that were way too high in the retail channel
and at our distributor's and manufacturer's warehouses.

"Our sales in the six months to June were $33.5 million with
only $3.5 million of sales in the July to December period. On a
positive note, our share of the market grew from 32 percent to
more than 45 percent, which leaves us with a larger customer
base for a new business model, which I will refer to shortly.
However I have to say the marketing costs of $16.5 million were
high and significantly contributed to our loss for the year.

"The company has now redefined its objective, which is to be
recognized as the leader in accounting software to the small to
median enterprise market through ease of use of the software. We
also want to be known as a company that is easy to do business
with. Key components of being easy to do business with are our
annual subscription-based customer service program and our new
software training initiative. This new business model should
result in high levels of customer satisfaction that, we believe,
will improve profitability and which, in turn, should result in
an improved share price for our shareholders.

"Let me briefly outline the key components of our new business

"I have already mentioned that we have brought the call center
function back in-house. We now have a state of the art call
center at our premises. We also regained control of our
manufacturing and distribution processes and we have hired
appropriately qualified personnel to ensure these core functions
remain on track.

"We took some hard decisions and cut back the size of our staff
and created a flat management structure. A Chief Operating
Officer, Clive Rabie, with strong financial and operational
skills, was appointed leaving the Chief Executive, Greg
Wilkinson, to focus on control of product development and
procurement as well as on sales and marketing. We re-established
a keen focus on the core business of software sales and

"As already mentioned, we significantly scaled back our online
financial services offerings as the Board formed the view that
turning a profit from selling these services online was

"We closed down the operations in Asia and we sold 80 percent of
our New Zealand operation to the people actually managing that
business. Reckon New Zealand now pays Reckon Ltd a royalty on
software sales in that country.

"As of December 31, 2000 we had cash reserves of $8.8 million.
The cash burn of $2.6 million in the March quarter includes the
cash outlay of accrued expenses from the December year-end and
is not directly indicative of the trading conditions. We are
forecasting negative cash flow of $900,000 in the June quarter.

"However, from July onwards we expect to be cash positive. The
company's focus is very firmly on profitability. The financial
software business is very seasonal by nature, with January to
April traditionally very poor in terms of sales. We are also
mindful of weak retail sales across the entire economy.

"We have a very strong customer base of 440,000 registered
software users. We want to introduce them to the benefits of
Quicken Advantage membership. This is our annual subscription-
based customer service program. This program provides the
customer with lower cost of support and increases the quality of
service. It brings them up to date with the latest releases at
all times, at an affordable price package.

"With constant changes to tax and accounting policy linked with
technological advances the user gets all these benefits at a
fixed cost. For the company it will become an annuity revenue
stream if we offer good products and services and customers
renew their membership. At the moment we have 3500 members
paying about $425 pa each. New members are signing up at the
rate of 1000 per month.

"Reckon Training Pty Limited was established in January this
year. Its function is to train our current and future customers
in the effective use of ours and other common business
applications. It is already trading profitably and the future
prospects are good as many people lack the knowledge to take
advantage of their ever-changing software.

"I will quickly summarize the key components of our new business
model. It has three integrated components, which support each
other. We have a software business with 440,000 registered
users. We have recently launched an annual subscription-based
customer service program, which sells for about $425 pa per
member. Current membership is 3500. The opportunity to grow our
Advantage program is great if you see our prime target to be our
440,000 strong registered-user base. On top of that we have
started a user software training business. Demand is high and
already the business is showing a small profit. Naturally the
training and Advantage membership initiatives can trade off each

"The most important objective for your directors is to ensure
that the new three pronged business model is properly bedded
down and we meet our objective of cash flow positive trading
from July 2001 onwards. A key contributor to this objective is
the Advantage customer service program, which produces annual
revenue in excess of $400,000 for each 1000 new members secured.

"We will maintain our strong market presence and add value to
our user base with the release of some new products. We will
release Versions 8 of QuickBooks, QuickPayroll and

"In addition we have an exciting product which looks set to have
application in North America as well as Australia.

"QuickPOS is a point of sale product that has been developed at
Reckon over the past four years. As 22 percent of our user base
is retail businesses we saw the opportunity to allow them to
integrate their point of sale activity with their accounting
system, a solution not currently available to small business. As
retailers are used to cash registers our product was developed
with this in mind. The product will be marketed to our existing
customer base and through specialty cash register companies who
are enthusiastic about the product. Intuit
America and Canada have been investigating this market for some
time. At this stage a localized version of the product will be
released in Canada. It may also be released in the USA. If both
of these initiatives come off, Reckon will receive some royalty
income from the product. This income will have no impact on our
2001 results.

"I would like to thank Greg Wilkinson, his management team and
all the staff at Reckon. They have worked hard; they have taken
some tough decisions; they have learnt some difficult lessons. I
regret these lessons have been learnt at the expense to
shareholders of a loss of $27 million. However, there have been
significant achievements lately including the development of the
new versions of QuickBooks, QuickPayroll and Quicken Personal,
not to mention the new business model of software, a
subscription-based customer service program and software
training programs. I am satisfied that the problems experienced
in 2000 are now behind us and that we have a commercially viable
business model. Naturally I share the business community's
concern about the weakening and volatile environment in which we
all work.

"I would also like to take this opportunity to thank my fellow
directors for their efforts in the difficult year just past and
I look forward to the year ahead."

Reckon Limited announced that at its Annual General Meeting held
in Sydney today the three resolutions proposed at the meeting
and as contained in the Notice of Annual General Meeting, were
passed by shareholders.

The following is a copy of the summary of proxies received for
the Annual General Meeting.


NO.     UNITS        UNITS         UNITS             UNITS

1       33,963,639   156,672       14,497,499         8,086
        69.53%         0.32%           29.68%         0.02%
        69.86%         0.32%           29.82%             -
2       33,813,289   306,022       14,497,499         9,086
        69.22%         0.63%           29.68%         0.02%
        69.55%         0.63%           29.82%             -
3       33,857,636   215,792       14,519,499        32,969
        69.31%         0.44%           29.72%         0.07%
        69.68%         0.44%           29.88%             -

The second line of percentages indicates the effective units -
For, Against & Discret.

WOODSANDS PTY: Gets Notice Of Lease Termination
Woodsands Pty Ltd, a subsidiary of Chieron Holdings Limited, has
received a Notice of Lease Termination from the Honorable the
Minister for Natural Resources over the Hamilton site to be used
for a cruise ship terminal and associated facilities.

The reason given for the Termination was the non-payment of the
current year rent of $375,000.00. Previous year rent of
$490,000.00 was paid.

Parent Chieron Holdings has made approaches to the State
Government to seek further discussions.

WOODSANDS PTY: Receiver Appointed
Chieron Holdings Limited announced that on May 4, 2001
subsidiaries Woodsands Pty Ltd and Woodsands Finance Pty Ltd
received copy of a Deed dated May 4, 2001 between Homebush Bay
Sports Club Pty Limited and Desmond William Knight appointing  
Knight to act as Receiver and Manager in terms of stated
Securities held by Homebush Bay Sports Club (a subsidiary of
Walter Construction Group).

The securities were referred to in released Annual Accounts of
the Company and controlled entities for the year ended June 30,

The appointment of the Receiver will be disputed.

WOODSANDS PTY: 100-Year Lease Terminated
The State Government has terminated the 100-year lease contract
granted to Woodsands Pty Limited, a subsidiary of Chieron
Holdings Limited, on the site where Cold Stores once occupied at
Hamilton, northside of Brisbane, and where Woodsands was to
build a $170-million cruise ship terminal, The Courier-Mail
reported Wednesday. The company has defaulted twice on the
rental payments, owing the State Government over $375,000.

The exclusive lease was given to Woodsands in 1997, when it was
to construct, on the land near Brett's Wharf, the Hamilton Quay
project, a complex that would have included a hotel, office
block, plaza, aquarium and entertainment facilities intended for
cruise ships. However, the construction was aborted despite tax
breaks given by the Federal Government worth $10.1 million.

Meanwhile, appointed Receiver Des Knight has already procured
the company's financial documentation and physical assets from
the site. He said he is set to meet with the company's directors
within the week.  

The site, after the termination of lease contract, will then be
returned to Crown Land, according to a spokesman of Natural
Resources, Minister Stephen Robertson.

C H I N A   &   H O N G  K O N G

ALIVE NETWORKS: Insists Finances Sound
Alive Networks is desperately working against the clock to
stitch together a rescue package to save the company. Alive
Networks was started by former Chinadotcom co-founder Ian Henry
and ex-Hong Kong Tourist Association deputy executive director
Douglas Gautier.

Speculation is rife the network will run out of funds on Friday
unless new investors are found.  Alive Networks has declined to
answer questions about the scramble for funding and has posted a
statement on the Television Asia website, saying it is
"confident of its business potential".

International companies have expressed interest in buying Alive
Networks, with offers ranging from US$1 million to US$15
million.  The offers have reportedly been turned down.

CHINA RESOURCES: No Disposal of HKCB Interests Planned
The directors of China Resources Enterprise Limited have
confirmed that the Company is currently not in negotiation with
any parties to dispose of its interests in The HKCB Bank Holding
Company Limited.

The directors of China Resources Enterprise Limited referred to
various articles appearing in the press May 9, 2001 regarding
China Resources Enterprise, Limited possible disposal of its
interest in The HKCB Bank Holding Company Limited.

The directors further advised investors to exercise extreme
caution when dealing in the securities of the Company.

CHINA RESOURCES: Trading Suspended
At the request of China Resources Enterprise Limited, trading in
its securities of the Company was suspended, effective 10:00 AM
yesterday, pending an announcement on possible fund raising
through issuance of convertible note.

Accordingly, the following derivative warrants will also be

Stock Code      Stock Short Name
----------      ----------------
2190            CS-C RES@EC0112
2201            CL-C RES@EC0108
2202            KC-C RES@EC0107
2211            MB-C RES@EC0107
2239            ML-C RES@EC0111
2244            SG-C RES@EC0109
1708            MB-C RES@EC0112

KIN DON: Court Dismisses Winding Up Petition
Kin Don Holdings Limited announced that the winding up petition
against the Company served by Stone Church LLC was dismissed by
the Court at the hearing May 7, 2001.

Trading in the shares of the Company on the Stock Exchange was
suspended from 10:00 AM, Monday, May 7, 2001 at the request of
the Company pending the release of this announcement. An
application has been made to the Stock Exchange for the
resumption of trading in the shares of the Company effective  
10:00 AM Thursday, May 10, 2001.

Reference is made to the Company's announcements dated December
11, 2000, February 28, 2001, March 14, 2001, March 19, 2001,
April 2, 2001, April 17, 2001 and April 18, 2001 regarding the
winding up petition against the Company served by one of its
creditors, Stone Church LLC (SC) involving a debt of
US$4,418,125 (approximately HK$34,373,000). At the hearing May
7, 2001, the Court ordered a dismissal of the above petition on
grounds that the Company and SC had entered into a conditional
compromise agreement on May 6, 2001 in the settlement of the
above indebtedness.

General details of the Agreement

Under the terms of the Agreement, SC agreed to accept in full
and final settlement of all its liabilities of, and claims
against, the Company outstanding at the completion date
(including but not limited to the above debt of US$4,418,125
plus interest accrued) by the allotment of 271,471,023 new
shares of HK$0.01 each of the Company, at a minimum issue price
of HK$0.1155 per share, and cash payment of HK$3,020,063 which
will be financed by means of the Subscription as defined below.

The New Shares shall be allotted and issued as fully paid upon
completion of the Agreement, free from any security interest and
enjoy the same status and rights as all other shares of the
Company in issue at that date. The above issue and allotment of
New Shares and cash payment will be made on completion of the
Agreement, which shall take place in five banking days after the
fulfillment of certain conditions precedent (either be satisfied
by the Company or waived by SC) on or before August 31, 2001.

Conditions precedent of the Agreement

The conditions precedent of the Agreement among others include

(1) compromises of indebtedness settlement with all the
Company's creditors apart from SC but including and not limited
to Asian Growth Fund Limited, Broadway Industries Limited, The
China State Bank, Limited, Sin Hua Bank Ltd.;

(2) entering into an agreement of subscription of new shares of
the Company by its single largest shareholder, Marble King
International Limited (MK) on terms no more favorable to MK than
those set out in paragraph below;

(3) obtaining approval from the Stock Exchange with respect to
listing of any new shares to be allotted;

(4) approval from shareholders of the Company at an
extraordinary general meeting and other regulatory authorities
with respect to the Agreement, successful compromises with Other
Creditors and the Subscription; and

(5) reduction of par value of shares of the Company from HK$0.10
to HK$0.01 each as set out in the Company's announcement dated  
November 24, 2000 and its circular dated December 28, 2000.

At the extraordinary general meeting of the Company held on  
January 22, 2001, the Capital Reduction was approved by
shareholders of the Company and it is now subject to obtaining a
confirmation order from the Grand Court of the Cayman Islands
and the approval from the Stock Exchange for the listing of new
shares after the Capital Reduction. Conditions (1) and (2) shall
be fulfilled on or before June 30, 2001 (or such later dates as
may be approved by SC in writing).

Major terms of the Subscription agreement to be negotiated and
entered into with MK

For the purpose of the above conditions precedent in the
Agreement, major terms of the Subscription agreement that need
be negotiated and entered into with MK include:

(1) subscription of 1,000 million to 1,300 million new ordinary
shares by MK and not more than 4,000 million transferable
convertible 10 percent fully paid preference shares depending on
the number of shares to be taken up by SC and Other Creditors
upon their compromises in the debts settlement. The objective is
to enable MK in obtaining control of not less than 51 percent of
the total issued enlarged share capital of the Company;

(2) subscription price of HK$0.02 per share; and

(3) fulfillment of conditions precedent of the Subscription -
obtaining approval from the Court of Cayman Islands in the
Capital Reduction, approval from shareholders of the Company at
an extraordinary general meeting of the Subscription, the Stock
Exchange approval for the listing of the Company's new shares,
and the granting of white-wash waiver by the Securities and
Futures Commission of Hong Kong, and where such waiver is
granted with any conditions attached, the satisfaction of those
conditions. The Subscription Agreement, will, if entered into,
constitute a connected transaction for the Company in accordance
with the Listing Rules. The Company will ensure full compliance
with the Listing Rules requirements on connected transaction

Impact of the New Shares and the Subscription Shares on
shareholding of the Company

The existing issued share capital of the Company comprises
940,661,976 shares of which MK holds 245,328,000 shares
representing approximately 26 percent of the issued share
capital of the Company.

The New Shares and shareholding of SC will represent
approximately 29 percent of the existing issued share capital of
the Company and approximately 11 percent to 12 percent of its
issued share capital as enlarged by the New Shares and
Subscription Shares.

The Subscription Shares will represent approximately 106 percent
to 138 percent of the existing issued share capital of the
Company and approximately 45 percent to 52 percent of its issued
share capital as enlarged by the New Shares and Subscription

Shareholding of MK will be increased to a range of approximately
56 percent to 62 percent of the issued share capital of the
Company as enlarged by the allotments of the New Shares and
Subscription Shares. As of the date of the announcement, the
Directors of the Company expected that there will be sufficient
public float on the shareholding of the Company upon the
allotment and issue of the New Shares and Subscription Shares in
that not less 25 percent of the Company's shares will be held by
members of the public as required under Rule 8.08 of the Listing

Since the lodging of the winding up petition by SC on December
8, 2000, the Company has commenced discussions with Other
Creditors and MK with respect to the debts settlement
arrangement and capital injection as disclosed in the Company's
announcements dated February 28, 2001, March 14, 2001 and April
18, 2001. Apart from the Agreement, negotiations with various
parties are still in progress and may or may not lead to any
agreement between the parties.

As the Agreement contains various conditions precedent, which
fulfillments depend principally on (a) the successful
negotiations and agreements with Other Creditors and (b) the
successful negotiations on terms of the Subscription and the
entering into an agreement with MK on the Subscription, the
Board considers that the Agreement may or may not proceed with.

Further announcement in relation to the progress of the
Agreement and negotiations with the Other Creditors and MK will
be made as and when appropriate.

Since the Agreement is subject to a number of conditions
precedent as mentioned above while negotiations with Other
Creditors and MK are still in progress, it is possible that such
negotiations may not lead to any agreement between the parties,
shareholders of the Company and investors should exercise
caution when dealing in the shares of the Company.

As of April 30, 2001, the Company had outstanding liabilities of
approximately HK$163 million (excluding amounts due to wholly-
owned subsidiaries) based on its management accounts.

Trading in the shares of the Company on the Stock Exchange was
suspended from 10:00 AM, Monday, May 7, 2001 at the request of
the Company pending the release of this announcement. An
application has been made to the Stock Exchange for the
resumption of trading in the shares of the Company effective  
10:00 AM Thursday, May 10, 2001.

KING PACIFIC: Enters Into Sale And Supplemental Deals
The Board of Directors of King Pacific International Holdings
Limited announced on Wednesday the following:

(1) Guangzhou Minzu Guest House

Further to those disclosed in point four (4) of the press
announcement of the Company dated January 11, 2001, this is to
inform members of the Company that a sale agreement and a
supplemental agreement dated January 31, 2001 and February 14,
2001 respectively were entered into by Yiu Wing Ningsi Real
Estate Development Company Limited, an 80 percent owned
subsidiary of the Company, and the Company as the vendors and
Fine Way Management Limited as the purchaser for Guangzhou Minzu
Guest House in Guangzhou, PRC.

The total consideration was RMB125,000,000.00 (equivalent to
HK$118,950,110.00) consisting of an acquisition cost for the
hotel at RMB110,000,000.00 and a refund of a decoration deposit
of HK$15,000,000.00 to the Group. The purchaser however had, on  
May 2, 2001, rescinded the sale agreement; details of which are
summarized in this announcement.

(2) Resignations of directors

Zeng Xiang Zhi and Ching Kwok Leung resigned as executive
directors of the Company, retroactive from March 13, 2001.

(3) Delay in publication of a circular

Pursuant to point two (2) of the Company's press announcement
dated January 11, 2001, a circular should have been sent to the
shareholders of the Company on or before February 1, 2001
advising them of the details of the joint venture agreements
with respect to the Beijing card project. The reasons for the
delay are reported in this announcement.

The delay in sending the circular constituted a breach of rule
14.13(2) of Chapter 14 of the Listing Rules and the Stock
Exchange reserves its right to take further action against the

(4) Suspension of trading

At the request of the Company, trading of the shares of the
Company on the Stock Exchange was suspended, effective 10:00 AM   
November 6, 2000, and will continue to be suspended until
further clarification has been made on the latest financial and
operational positions of the Group.


(A) The Sale Agreement and the Supplemental Agreement

The history of the Company's investment in the Hotel was covered
in point four (4) of the press announcement of the Company dated
January 11, 2001.

The Sale Agreement and a supplemental agreement dated January
31, 2001 and February 14, 2001 respectively were entered into by
the Vendors and the Purchaser for the Hotel in its current form
and conditions at the Total Consideration (which was equivalent
to HK$118,950,110.00 at the Conversion Rate) consisting of an
acquisition cost for the Hotel at RMB110,000,000.00 and a refund
of a decoration deposit of HK$15,000,000.00 to the Group.

Part of the sale proceeds would be applied to pay off all
outstanding debts and liabilities incurred in constructing the
Hotel. Net proceeds of approximately RMB4.44 million (which was
equivalent to HK$4,195,804.20) were expected by the Group.

The Purchaser was an independent third party and was not
connected with any director, chief executive or substantial
shareholder of the Company or any of its subsidiaries or an
associate (as defined in the Listing Rules) of any of them.

(B) The Reasons for the Sale

The investment project in the Hotel commenced in 1992-93. Yet
the Hotel is not in business as of today. The Company has
invested more than HK$87 million into this Project.

The long delay was caused by the fact that the Minority
Shareholders of the Subsidiary have violated the laws of sino-
foreign joint venture of the PRC and its regulations by raising
their respective shares of contractual contribution to the Hotel
within the PRC.

The illegal funding of the Minority Shareholders of the
Subsidiary, which was received and used in the construction of
the Hotel, had implicated and hampered the development of the
Hotel, which has come to a halt since 1997.

The delay can cause the PRC Government to revoke the
construction license of the Hotel and the business license of
the JV Co or to confiscate the Hotel altogether at any time. As
a result, the current state of affairs of the Hotel demanded
decisive and immediate actions by the Board.

(C) Current Conditions of the Hotel

The Hotel is located in Guangzhou City, PRC and has a gross area
of approximately 22,000 square meters. The foundation and
superstructure of the Hotel have basically been completed. Yet,
interior decoration and furnishing of the Hotel have barely

All approvals and regulatory matters of the Hotel are still

As explained in point (C) above, the Hotel has been implicated
by the investigations and prosecution by the PRC Government of
the Minority Shareholders of the Subsidiary.

The issuance of title documents and approvals for operation of
the Hotel will depend on the satisfactory solutions of the legal
entanglements caused by the Minority Shareholders.

(D) The Rescission

Unfortunately, the Purchaser rescinded the Sale Agreement May 2,
2001 on the ground that the Vendors were not able to complete
the sale on a timely basis. The Purchaser was concerned that
delay in completion of the sale would derail all its efforts,
before the construction license is revoked by the PRC
Government, to have construction and decoration of the Hotel
resumed and completed, and at the same time, to resolve the
legal entanglements that the Hotel has been implicated in .

The Vendors were not able to close the transaction in time for
two primary reasons and these were:

(a) Cheung controls the board of directors of the Subsidiary and
also holds one share in Rohtak in trust for the Company. Cheung
has, thus far, declined to return the share in trust to the
Company despite formal demand in writing by the Board; and

(b) The Company was required to explain to the Receiver the
history of the Hotel, the background of the Subsidiary and, more
importantly, to justify of the sale.

The rescission was unfortunate as a suitable purchaser of the
Hotel is not easy to find because of its current legal
entanglements of the Hotel. The Board will however try its very
best to find a purchaser as soon as possible.

(2) Resignation of Directors

Zeng Xiang Zhi and Ching Kwok Leung resigned as executive
directors of the Company retroactive from March 13, 2001. The
Board with a note of appreciation for their contributions to the
Group accepted their resignations.

(3) Delay In Publication Of  A Circular

Pursuant to point 2 of the Company's press announcement dated  
January 11, 2001, a circular should have been sent to the
shareholders of the Company on or before February 1, 2001
advising on the details of the joint venture agreements with
respect to the Beijing card project.

The delay in finalizing the circular was due to the immense size
of the investment and the sequence of the joint venture
agreements involved. The circular will be finalized soon and be
sent to the shareholders immediately thereafter.

It however constituted a breach of rule 14.13(2) of Chapter 14
of the Listing Rules.

(4) Suspension of trading

At the request of the Company, trading of the shares of the
Company on the Stock Exchange was suspended effective 10:00 AM   
November 6, 2000 and will continue to be suspended until further
clarification has been made on the latest financial and
operational positions of the Group.

TOM.COM: Q1 Losses Balloons To HK$70.33-M
----------------------------------------- announced that its losses for the first quarter ended
March 31 burgeoned to HK$70.33 million from HK$45.37 million for
the same period in the previous year, notwithstanding a 10-
percent rise in revenues to HK77 million, South China Morning
Post reported yesterday.

However, there is marked improvement in the quarter's bottom
line as compared to the reported loss in the previous quarter of
HK$78.32 million. According to COE Sing Wang, the narrowed loss
quarter-on-quarter could be linked to the a better control over
operating costs.

The company's offline revenue for the period was HK$56 million,
overshadowing the HK$18 million in online revenues.


BANK DANAMON: Lawsuit On Horizon
PT Bank Danamon is going to face a suit filed by lender PT Bank
Indonesian Finance and Investment Company (IFI), after failed
mediation moves made by the central bank in an out-of-court
settlement over the dispute between the two financial entities,
Bloomberg reported Wednesday.

IFI lawyer Hotman Paris Hutapea told Bloomberg, "It has been one
month now, and Bank Indonesia's mediation efforts have not
brought us anywhere. Up to now, Bank Danamon has not paid a
single rupiah of our claim."

IFI is filing for claims against Bank Danamon worth $12 million
in debts, including principal, interest and penalties, from the
$5-million loan extended in 1996 by IFI to PT Bank Nusa
Nasional, which was one of the eight banks that merged into
Danamon in 2000.

A Danamon lawyer, however, disputes the amount, saying the bank
owes IFI only half of what it is claiming.

According to the central bank, a suit against Danamon in the
bankruptcy court would place the bank in great risk of failing,
thereby destabilizing the whole banking sector.

SUMALINDO LESTARI: Wants Loan Restructuring Renegotiated  
After failing to make payments on the interest of loans that
matured March 30, 2001, PT Sumalindo Lestari Jaya Tbk is seeking
to renegotiate loans restructuring with its creditors,
IndoExchange News reported Tuesday.

According to the company's Corporate Secretary Julianto
Kusnandar, the company encountered problems living up to its log
production target, raising production costs. In addition, the
company had to contend with the drop in plywood prices in the
first quarter of the year, attributed to the China's plywood

For Sumalindo to keep and secure its future sustainability,it
will need to execute a turn-around plan which includes the
following: efficiency and productivity improvement, suspension
of new operations, strong and aggressive marketing campaigns,
and restructuring of loans.


NIPPON COLUMBIA: Enters Into Capital Tie-Up
Nippon Columbia Company Limited has struck a fundamental
agreement for capital tie-up with Ripplewood Holdings LLC and
Hitachi Limited, AFX-Asia reported Wednesday.

The deal would allow Nippon Columbia to spin off its audio-
visual operations, which would then be assumed by the company's
wholly-owned subsidiary. Both Ripplewood and Hitachi would then
buy, 98 percent and 2 percent, respectively, stakes in the  

Nippon Columbia, through this plan, will re-focus on its music
entertainment business. It will also raise its capital by as
much as Y6.6 billion through a third-party allocation in July
and October.

TOKUYO CITY: Ex-Execs OK To Repay Y90-M
Former executives of Tokuyo City Bank, Kunio Otani, Hajime
Washio and Kei Hayasaka, formerly the bank's president, senior
managing director and chairman, respectively, have agreed,
through an out-of-court settlement with the state's Resolution
and Collection Corporation, to repay a total amount of Y90
million, Japan Times Online reported yesterday.

The three former officials of the collapsed Sendai-based second-
tier regional bank were charged by RCC for extending so-called
"dubious loans" in 1991.

According to RCC, Otani and Washio were responsible for bad
loans worth Y1.6 billion granted to a local real estate firm
without substantial collateral. Hayasaka was implicated in the
case for his being negligent in overseeing the two other

RCC purchased the bank's extended loans amounting Y113.5
billion. So far, RCC has recovered 60 percent of the entire sum
of loans from borrowers, amounting to Y69.5 billion.


DAEWOO MOTOR: Creditors Oppose GM Bid
Daewoo Motor's creditor group have raised objection to General
Motor's takeover bid, which according to reports would exclude
other Daewoo plants, among them its main Bupyong plant, The
Digital Chosun reported yesterday.

The creditor group, according to a source close to the
negotiations, stands firm on selling off Daewoo and its
subsidiaries as one package.

Talk is already circulating that GM intends to acquire only the
Kunsan and Changwon plants, and the Daewoo's sales unit.

HYUNDAI ENGINEERING: Creditors Plan Bailout Expansion
An additional bailout plan is currently being worked out by
local creditor banks for Hyundai Engineering and Construction
Company (HDEC), Asian Wall Street Journal reported Wednesday,
citing a report by Seoul Economic Daily.

With this new development, the creditors are expected to appoint
either a foreign bank or a consulting firm to undertake a due
diligence on the company's finances.

The new bailout package could include the provision of
maturities extension to HDEC bonds amounting to W1.8 trillion.
The bonds are scheduled to mature next year.

HYUNDAI ENGINEERING: S-Holders Panel Seeks Inquiry
The rights group for minority shareholders of the People's
Solidarity for Participatory Democracy (PSPD) are reported to
have filed a request with the Financial Supervisory Service
(FSS) for an inquiry into Hyundai Engineering and Construction
(HDEC). The requset includes Samil Accounting Firm, the ailing
builder's external auditor, The Digital Chosun reported

According to a PSPD spokesman, there could be fabrications in
the company's accounting reports, as evidenced by the mercurial
rise in the company's deficit volume from W120 billion in 1999
to W2.98 trillion in the last year, causing a depletion in the
company's capital. PSPD further alleged that HDEC and the
external auditor could be behind this, citing the latter for its
failure to report the company's unpaid past due construction
fees from the Iraqi venture in 1999.

Korea Express (Korex) is spinning off a subsidiary into an
entity that will be engaged in e-commerce and other related
information technology (IT) services, The Korea Herald reported

The new entity will be named KE Information Technology, taking
in Korex's existing online shopping operation called Korexmall,
and will boast of capitalization amounting to W1.5 billion.

Sales for the new IT entity, which will be under the watchful
eye of Korex President Kwak Young-wook, are projected to reach
W18 billion by year's end.

This move has been approved by the courts.

Korex was placed under court receivership in November of last


CSM CORP: Reports Status Of Default
CSM Corporation Berhad reported an update on the status of
default in interest payments and principal loan repayment of the
CSM Group bank borrowings as of April 30, 2001 as follows:

Bank Utama (Malaysia) Berhad
Term Loan: (Type of Default) Principal repayment and interest
payments RM35.3 million (as of 30 April 2001) - Land and
building (Existing Security)
Overdraft: RM86.1 million - land and building

Alliance Bank Malaysia Berhad
Term Loan: RM25.0 million - land and building

Bank Islam Malaysia Berhad
Trade Facilities: RM7.1 million (trade facilities overdue)

HSBC Bank Malaysia Berhad
Term Loan: RM2.1 million - corporate guarantee from CSM

Since the company's latest announcement dated April 6, 2001,
there had been no change in the status of the above and no
further legal action had been taken against the Group.

The above defaults will be addressed in conjunction with the
Group's efforts to regularize its financial conditions, as
required under the PN4/2001 requirements by way of loan
restructuring and acquisition of new assets. The management is
currently negotiating with the bank lenders on various options
available to restructure the existing loans and is also engaged
in discussions with interested parties on potential assets for

CSM will make the necessary announcements upon finalization of
the proposals, which is expected to be within the timeframe of 6
months from the date of the First Announcement i.e. by August
26, 2001 in compliance with the requirements under PN4/2001.


The Company's activities are focused in manufacturing, trading
and distribution of food and allied products, property
management, investment and development.

Formed as a wholly-owned subsidiary of Cold Storage Holdings PLC
(CSH), the Company commenced operations in February 1974, upon
completion of a reorganization of the CSH Group in Malaysia.

As part of the reorganization the Company acquired the Malaysian
assets of Cold Storage Singapore Pte Ltd and was then converted
into a public company and listed on KLSE.

The Company diversified its earnings base into property-related
activities in 1993 and, in 1994, into manufacturing and
distribution of dairy products in JV with Nestle SA Switzerland
and Dairy Farm International Holdings Ltd. Through JVs, the
Company also acquired stakes in the Guardian Pharmacy chain and
in AMS Health Care Products with the view, then, to build up a
substantial supermarket chain.

However, as a response to the current market conditions, and in
order to focus on higher profit trading and manufacturing
activities, in 1998 the Company divested its investments in the
supermarket and pharmaceutical retailing chains.

Trading and manufacturing and property management will
henceforth remain the focus of the Group, in addition to
property development that is envisaged to improve in the years
to come. With this change in focus, the Company has changed its
name to CSM Corporation.

GADANG HOLDINGS: Settlement Reached With Berjaya Land
Gadang Holdings Berhad announced that on May 4, 2001 the company
entered into a Settlement Agreement (SA) with Berjaya Land
Berhad (BLand), the holding company of New Pantai Expressway Sdn
Bhd (NPE) for the full and final settlement and satisfaction of
the Company's Claim against NPE in relation to the termination
of the Company's appointment as Turnkey Contractor for the New
Pantai Highway Project.

The aforesaid settlement is subject to the completion of the
proposed disposal by BLand of its entire interest in NPE to Road
Builder (M) Holdings Berhad.

The aforesaid settlement has no material effects on the earnings
per share and net tangible assets of the Company for the
financial year ending May 31, 2001.

However, the settlement will contribute positively to the
earnings per share and net tangible assets of the Company for
the financial year ending May 31, 2002 subject to the successful
completion of the Proposed NPE Share Disposal.

Based on the prevailing condition, the Board of Directors is of
the opinion that the aforesaid settlement was entered into in
the best interest of the Company.

GADANG HOLDINGS: SC Rejects Appeal For Reinstatement
Gadang Holdings Berhad on January 17, 2001 appealed to the
Securities Commission (SC) to reinstate the proposed issue of
RM28,652,000 nominal value of ICULS to the vendors of Achwell
Property Sdn Bhd and Mandy Corporation Sdn Bhd, compared to the
RM14,616,000 nominal value of ICULS as approved by the SC.

On May 4, 2001, the SC rejected the appeal.


The Gadang Group's core business activity is in earthworks,
civil engineering and building construction. It also undertakes
property development and investment, and to complement these
activities, engages in the manufacture of cement.

As of December 31, 2000, the Group's operations are situated in
Selangor and Federal Territory (Kuala Lumpur). Worth in Ringgit
of contracts in hand/total order book as of December 31, 2000
was RM670,749,825.

SPORTMA CORPORATION: SC Approves Extension  
The Special Administrators of Sportma Corporation Berhad
announced that the company had obtained the Securities
Commission's (SC) approval for the extension of time for a
period of six months up to November 5, 2001 for the
implementation of the Proposed Corporate and Debt Restructuring
Scheme, which had been earlier approved by the SC vide its
letter dated November 6, 2000.


On September 9, 1999, Pengurusan Danaharta Nasional Bhd
appointed the Special Administrators (SA) to manage the affairs
of the Company. Production activities were reduced to the
minimum during the Receiver & Manager's period and during the
appointment of the SA.

Subsequently the Company ceased operations following a Lease
Agreement, which was executed on December 3, 1999 between the
Company and Amalgamated Composite Technologies Sdn Bhd (ACT) for
the lease of fixed and hire purchase assets of the Company and
Silkprint Industries Sdn Bhd.

On March 15, 2000, the secured creditor of the Company approved
a plan as proposed by the SA. The proposed restructuring plan
involves cancellation of the entire share premium reserves of
Sportma, transfer of Sportma's listing status of Harn Len
Corporation Bhd (Harn Len) by way of exchanging 10 existing
Sportma shares for one new share in Harn Len, rights issue,
injection of profit generating assets, disposal of non-
synergistic business and liquidation of existing non-viable and
defunct businesses.

As a result, shareholders of Sportma will become shareholders of
Harn Len; and Sportma will become a wholly-owned subsidiary of
Harn Len. Harn Len will thus become the new ultimate holding
company of Sportma.

Sportma had commenced operations in 1990 producing tennis,
badminton, squash and racquetball racquets for leading brands
such as Wilson, Spalding, Rossignol, Kneissl and Adidas.

SYARIKAT BINAAN: Posts Response To SET Query
The Board of Directors of Syarikat Binaan Budi Sawmill Berhad
(SBBS) announced that the Company was unable to reply to the
Stock Exchange of Thailand immediately as the Company required
time to verify the relevant information internally and with its
external Auditors.

The Company had announced a loss after tax of RM5.9 million
(unaudited) in its 4th Quarterly Report to your Exchange on  
February 27, 2001. Subsequent to that, the Company had submitted
the audited accounts for the year ended December 31, 2000 to
your Exchange on April 30, 2001, among others, a loss after tax
of RM4.3 million.

The variance of RM1.6 million was mainly due to the following
provisions in the Company's audited accounts:

1. Reversal of provision for deferred tax amounting to RM3.0

2. Increase in provision for doubtful debts amounting to RM1.1

3. Increase in provision for compensation to an ex-employee
amounting to RM0.2 million; and

4. Increase in provision for Directors' fees amounting to RM0.05

Syarikat Binaan Budi Sawmill Bhd (SBBS) is engaged in the
manufacture and sale of sawn and moulded timber, wood-based and
timber products and furniture. Its current markets include
Germany, Netherlands, Belgium, Italy, UK, and Denmark.

Its modern and integrated timber complex is located in Kuala
Krai, Kelantan.

TAIPING CONSOLIDATED: Restructures To Positive NTA
Taiping Consolidated Berhad (TCB) confirmed that upon the
listing and quotation of Irredeemable Convertible Preference
Shares (ICPS), Restricted Issue Shares and the requotation of
the Consolidated Shares on May 10, 2001, TCB has successfully
completed and restructured itself to a positive adjusted Net
Tangible Assets by definition of Section 2.2 under the
provisions of Practice Note No. 4/2001. As such, TCB no longer
falls under the definition of an "Affected Listed Issuer" under
the provisions of Practice Note No. 4/2001.

The details of TCB financial results will be announced in due


Originally a tin mining company, the Company (TCB) branched into
its current core business of property development in 1990. Among
the landmark properties developed by the Group in Kuala Lumpur
is Lot 10, Star Hill Center which houses Tangs Department Store
as its anchor tenant, and the JW Marriot International Hotel.

TCB is currently involved in the Sentul Raya project.

It is in the process of implementing a restructuring exercise,
proposed in March 1999, which includes a capital reconstruction,
scheme of arrangement with creditors, a restricted issue to YTL
Corporation Bhd (YTL) and the restructuring of subsidiary,
Sentul Raya Sdn Bhd (SRSB).

The restructuring exercise is in its final stage of completion.
The various proposals have received the approval of the SC, FIC
and the scheme creditors of TCB and its four subsidiaries (the
scheme companies).

Subsequently, on February 20, 2001, the High Court confirmed
TCB's capital reconstruction and sanctioned the composite scheme
of arrangement of the scheme companies.

As of March 2001, the Company is in the midst of implementing
the capital reconstruction, restricted issue and issue of ICPS
to creditors. Upon the completion of these exercises, YTL will
become TCB's majority shareholder with the revived Sentul Raya
development project as its principal asset.


METRO PACIFIC: Posts P2.25-B In Net Income
Metro Pacific Corporation (MPC) reported unaudited consolidated
net income of P2.25 billion for the year ended December 2000. In
1999, the company reported a net income of P2.40 billion.

During a difficult year, in which the Philippine economy and
currency was adversely affected by prevailing economic and
political uncertainties, net earnings were principally derived
from the sale of an 8.0 percent stake in Philippine Long
Distance Telephone Company (PLDT) which generated a net gain of
P5.0 billion. In addition, gains totaling P257 million were
realized from the sales of investments in Steniel Manufacturing
Corporation and Metrovet, Inc.

These gains, however, were partially offset by foreign exchange
losses arising on US dollar denominated borrowings as the peso
depreciated 19 per cent over 2000. In addition, MPC made
additional provisions against its non-property investments, and
certain affiliates reported losses in 2000.

Despite this prevailing economic condition, MPC registered
consolidated pre-tax operating income before extraordinary items
of P162 million, from consolidated revenues of P9.79 billion in
2000, compared to P576 million of pre-tax income in 1999 from
revenues of P9.83 billion. Higher operating expenses and a
sluggish demand resulted in lower operating margins and pressure
on the country's banking system led to higher interest rates
and, in turn, higher financing charges.

Basic earnings per share for the year was centavos 11.68, on a
weighted average number of shares of 18,598,898, and fully
diluted earnings per share was centavos 11.40, on a weighted
average number of shares of 19,066,069.

As a consequence of the Company's asset disposals during the
year, consolidated interest bearing liabilities have declined 27
percent to P16.41 billion, from P22.35 billion in 1999. With its
equity position increasing to P68.27 billion as at the end of
2000, MPC improved its gearing ratio to 0.39x from the previous
year's level of 0.51x. The current ratio was slightly lower at
1.14x, from 1.6x in 1999, largely due to the increase in the
current portion of long-term debts.

Review of Operations

Fort Bonifacio Development Corporation (FBDC), the developer of
the Bonifacio Global City which is owned 55 percent by Bonifacio
Land Corporation, in which MPC has a 66 percent controlling
interest, closed the year with a net income before tax of P1.47
billion, compared to P2.45 billion attained in 1999. With the
completion of Big Delta in April 2000, all previous land sales
in that area were fully recognized and with no new land sales
being booked in 2000, revenues dropped to P3.98 billion (P4.25
billion in 1999) and net operating income declined to P1.44
billion (P2.13 billion in 1999).

Meanwhile, significant project progress was made during the year
including the completion of the Kalayaan flyover in February
2000. This expressway links Sen. Gil Puyat Avenue (formerly
Buendia) to Kalayaan Road thereby affording efficient access to
Bonifacio Global City. Further development of key access
infrastructures along C-5 road leading to the Global City has
progressed. The upgraded Sampaguita Bridge gate and the
construction of the Upper East gate will be completed and ready
for use in middle of 2001.

Development of Expanded Big Delta A commenced in 1999 and is now
85% complete. Initiatives ithin E-square, FBDC's 25 hectare,
PEZA accredited IT zone in the Global City, have advanced with
the Hatchasia Global City Center nearing completion and Net One
Center, an IT empowered office development, has recently topped-
out its building with completion anticipated by mid-2001.

The Bonifacio Ridge condominium project, which broke ground in
early 2000 had recorded unit sales of 47 percent by year end.
Other high-end residential condominium projects within the
Bonifacio Global City, have started to release units to their

Pacific Plaza Towers (PPT), MPC's signature project in the
Bonifacio Global City, contributed a net operating profit of
P658 million, on sales of P3.15 billion in 2000. This represents
an increase of 15 percent over 1999's net operating income of
P570 million, on sales of P2.49 billion. As of end-2000,
approximately 60 percent of PPT's 393 units were sold, and the
first few units were turned over to owners by middle of February

Landco Pacific Corporation (LPC), the residential resort
development subsidiary of MPC, registered an increase in net
operating profit to P142 million, from P139 million in 1999, on
sales of P462 million, against sales of P616 million in 1999.
The decline in sales is reflective, in part, of the flat real
estate sector. Also contributing to the lower level of sales is
a reduced contribution from the highly successful Punta Fuego
development as it is now largely sold out. Despite this, LPC has
managed to improve its operating profit through the rigorous
implementation of cost-cutting measures introduced last year.

Ricardo S. Pascua, President and CEO of Metro Pacific, commented
on the Company's performance. "Affected by a very difficult
economic environment, the year 2000 has been a challenging year
for Metro Pacific. Nonetheless, I am very pleased with what has
been achieved by the group. Not only have we returned a profit
but also, in so doing, we have successfully completed the
repositioning of Metro Pacific as a quality real estate
development company. We envisaged that the real estate sector
will be a principal beneficiary of the renewed confidence in the
economy and I am confident that Metro Pacific is well placed to
take full advantage of this."

NEGROS NAVIGATION: Works Out Turnaround PLan
Metro Pacific Corp (MPC) subsidiary Negros Navigation Company
Inc (Nenaco) has drawn up a recovery plan to raise the level of
its operating efficiency beginning in the current year, Manila
Times reported yesterday.

According to MPC CEO Grant Ferguson, Nenaco's net loss last year
reached P814.8 million, bigger by 4.75 percent than the previous
year's net loss of P777.8 million.

He also added, the recovery plan will include capital
restructuring, rationalization of routes, review of
organizational structure, improving the service quality, strong
and sharp marketing programs, among others.

Nenaco board, according to Ferguson, has also approved a new
round of capital restructuring exercise, targeted to reduce its
P3.4-billion existing deficit by 76 percent. After this exercise
will be effected, Nenaco will then raise its authorized capital
stock to P4 billion, and proceed with the issuance of new shares
valued at P1.3 billion.

In this light, with the option of a sell-out as a going concern,
Metro Pacific plants to implement the rehabilitation of Nenaco
to make it more palatable to prospective investors.

REYNOLDS PHILS: SEC Upholds Decision On Stock Anomaly
The Securities and Exchange Commission (SEC) has yielded to the
plea of the Philippine Stock Exchange to carry out the latter's
ruling on the stock manipulation case of Reynolds Philippines
Corporation (ROC), Philippine Star reported yesterday.

PSE ordered the imposition of penalties on RPC, implicating 10
of its stock brokers, charged for illegal sales schemes
involving wash sales and matched orders, the report said.

Otherwise, an overruling by the commission on PSE's decision
would have negative impact on the exchange as a self-regulatory
organization (SR)), according to a PSE statement.

"We have this understanding with the SEC on our role as an SRO
that they will recognize our powers to discipline our own
members, provided there is no abuse of discretion," said PSE
president Ramon Garcia.


FHTK HOLDINGS: Update On Debt Restructuring
FHTK Holdings Limited reported an update on the status of its
debt restructuring exercise. Terms defined in the earlier
announcements shall, unless the context otherwise requires, have
the same meaning in this announcement.

(1) The Banks have agreed in-principle to:

(a) the extension of the deadline for implementing the debt
restructuring plan pursuant to the Debt Restructuring Agreement
to August 15, 2001;

(b) a proposed capital reduction exercise by way of --

(i) cancellation of the issued and paid-up capital of the
Company lost or unrepresented by available assets to the extent
of S$0.15 for each Share and the reduction of the par value of
each Share from S$0.20 to S$0.05, such that the issued and paid-
up capital will be reduced from S$131,574,848.40 divided into
657,874,242 Shares to S$32,893,712.10 divided into 657,874,242
Shares, and

(ii) the cancellation of an amount of S$42,702,000 standing to
the credit of the share premium account of the Company and
representing capital lost or unrepresented by available assets,
such that the amount standing to the credit of the share premium
account of the Company amounting to S$42,702,000 as at 31
December 2000 will be eliminated.

An aggregate of $141,383,000 being part of the Group's
accumulated losses and capital unrepresented by available assets
will be written off pursuant to the Capital Reduction Exercise.
Subsequent to the capital reduction exercise, the share premium
created by the issue of the conversion ordinary shares to the
creditor banks, would be used to eliminate the balance of the
Group's accumulated losses, thus enabling the Group to continue
its operations on a clean slate.

Details of the proposed Capital Reduction Exercise, which is
subject to the approval of the court, will be disclosed in a
Circular to Shareholders for the purposes of obtaining the
Shareholders' approval on the Debt Restructuring Plan and the
Capital Reduction Exercise.

(3) All other terms of the Debt Restructuring Plan, as
summarized in our announcements of October 24, 2000, November 8,
2000 and February 21, 2001, remain unaffected.

(4) On February 2, 2001, the Company also sought clarification
from the SGX-ST as to whether the call options granted to the
shareholders as set out in paragraph (c) of our announcement  
November 8, 2000 over up to 70 percent of the Conversion
Ordinary Shares require specific Shareholder approval pursuant
to Clause 941 and Practice Note 9c of the SGX-ST Listing Manual
and confirmation that the transactions contemplated in the
Restructuring Agreement do not constitute related party
transactions pursuant to Chapter 9A of the Listing Manual.

The SGX has confirmed that the Clause 941, Practice Note 9c and
Chapter 9A of the SGX-ST Listing Manual do not apply to the Debt
Restructuring Plan. It has however ruled that the Call Option
Shareholders should refrain from voting on the Debt
Restructuring Plan in the Extraordinary General Meeting that
will be called to approve, inter alia, the Debt Restructuring

(5) The Company will call for an Extraordinary General Meeting
to obtain the Shareholders' approval for the Debt Restructuring
Plan and the Capital Reduction Exercise. The Company is
currently preparing a Shareholders' Circular to explain the
terms of the Debt Restructuring Plan and the Capital Reduction
Exercise, which will be disseminated to the Shareholders upon
the Shareholders' Circular being approved by the SGX-ST.

I-ONE.NET: Posts Proforma Half-Year Results
I-One.Net International Limited posted an operating loss of
S$31.480 million for the half-year period ended January 31,
2000, as opposed to the operating profit of S$2.151 million of
the previous period in the same year. The current figure was
made on turnover of S$11.798 million, as opposed to S$19.259
million for the preceding period.

Compared to the first half year of FY00, turnover for the Group
decreased by 38.9 percent or S$7.5 million from S$19.3 million
to S$11.8 million. The decrease was mainly due to an extremely
weak demand for our services in Electronic Media sector as a
result of the collapse of the Internet bubble.

Turnover in Electronic Media decreased by 82.8 percent or S$7.7
million from S$9.3 million to S$1.6 million. However, turnover
for Print Media increased by 3.0 percent or S$0.3 million from
S$9.9 million to S$10.2 million.

Within the Print Media, turnover for time sensitive printing
increased by 11.4 percent or S$0.8 million from S$7.0 million to
S$7.8 million. Turnover for annual report increased by 95.6
percent or S$458,000 from S$479,000 to S$937,000.

In profit breakdown, the Print Media recorded S$1.8 million
profits while the Electronic Media recorded a S$10.6 million
loss before exceptional item.

With the decrease in sales and a high fixed costs associated
with the Electronic media business, the Group recorded S$9.7
million operating loss before exceptional item for first half of

The major expenses relating to Electronic Media business were:

i) Manpower and related cost S$4.1 million

ii) Marketing and I-One operating costs S$4.0 million

iii) Startup cost of new businesses S$1.0 million

Together with an estimated one-time charge of $21m for business
restructuring (see item 6), the company recorded an operating
loss before income tax of $31.4 million.

A statement by the Directors of the Company on whether "any item
or event of a material or unusual nature which would have
affected materially the results of operations of the Group and
Company has occurred between the date to which the report refers
and the date on which the report is issued."

If none, to include a negative statement.

In the opinion of the Directors of the Company, apart from the
following items, no item or event of a material or unusual
nature has arisen which could have affected materially the
results of operations of the Group and the Company has occurred
between the date to which the report refers and the date on
which report issued:

i) S$5.9 million for provision for loss of i-one related assets;
ii) S$10.5 million for provision for internet related debts and
incubation projects; and
iii) S$4.6 million for unamortized past i-One developmental

Given this weak performance of the Electronic Media and
following the profit warning issued on Jan 9, 2001, the Board
has decided to exit the Internet kiosks business in Singapore as
new technologies such as 3G phones and the high PC penetration
in our homes and businesses will make the kiosk business model
less relevant.

Further, several potential risk factors highlighted in the
Group's IPO prospectus and annual reports, have become a
reality, such as:

(i) slow market acceptance and utilization of the i-One kiosk

(ii) inability to secure sufficient optimal sites for i-One
kiosks, eg the removal of our kiosks from Orchard Road mall due
to government's plan to redevelop Orchard Road;

(iii) operating costs associated with sustaining this business
far exceeding advertising revenue which fell in line with
economy slowdown.

In line with this move, the Group has also decided to stop new
investments in its kiosk projects in China and will be exploring
optimal avenues for withdrawal with its joint venture partners.

To exit the kiosk business, the Group has decided that it is
necessary to make an estimated one-time charge of S$21.0 million
to its profit and loss accounts for the financial year ending 31
July 2001. This comprises of S$5.9 million for provision for
loss of i-one related assets, S$10.5 million for provision for
internet related debts and incubation projects, and S$4.6
million for unamortized past i-One developmental costs. The
Group expects to incur a loss for second half of the current
financial year, though on a much smaller scale than the first
half. Overall, the Group will incur a loss for the financial
year ending July 31, 2001.

With this restructuring, the Group will now re-focus its
business plans on its proven time sensitive financial printing
business. This 15 year-old business has been providing the Group
with good cash flow and has been recording a steady average 10-
15 percent revenue growth annually. It is a regional leader in
this niche with customers from all leading international and
local securities firms.

Going forward, this growth will be complemented by its new setup
in Shenzhen, China where the company has just started a new
financial printing operation focusing on one-stop pre-press
services ranging from translation, creative design, layout,
printing and delivery. The Board believes that this market has
potential as Shenzhen houses some 50 securities firms and with
500 firms listed on the Shenzhen Stock Exchange. In addition,
the market for financial printing is expected to grow further
when Shenzhen Stock Exchange introduces a technology board. To
provide further focus for the Chinese market, the Group has also
closed its Suzhou operations and consolidated it into the
Shenzhen outfit.

Apart from exiting the kiosks business, the Group has already
started a process of cost cutting and manpower reduction from
372 on July 31, 2000 to 295 today. Further reductions are
expected by July 31, 2001.

This will result in manpower and operational cost savings of up
to S$10 million per year. With aggressive cost cutting and
focusing on cash flow positive business, barring unforeseen
circumstances, the Board believes that these measures will allow
the Group to return to profitability in the next 12-18 months.


The Stock Exchange of Thailand (SET) announced two listed
companies have been subjected to rehabilitation plan preparation
and posted SP (Suspension) signs to prohibit securities trading
of those listed companies and also transferred the two listed
companies to REHABCO category April 9, 2001. The SET also
informed a time schedule for those listed companies' management
to make a 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 May 9, 2001 to disclose to the

After that, the SET will allow trading of those listed companies
on May 10, 2001 - June 8, 2001 before suspension again on June
11, 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 April 5, 2001.

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

1. Allows trading of two securities, which decide to prepare a
rehabilitation plan, under the REHABCO category from May 10,
2001 to June 8, 2001 to give shareholders a chance of trading
the company's securities.

(1) B. Grimm Engineering Systems Public Company Limited (BGES)
(2) Prasit Patana Public Company Limited (PYT)

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 May 10, 2001.   

2.Posts an SP sign to prohibit further trading of two
securities, beginning from June 11, 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 February 9, 1995.

Those two 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

EKKAPAT FINANCE: Bankruptcy Process Rolls On
The Central Bankruptcy Court declared three suspended companies,
namely, Ekkapat Finance and Securities Plc, Krung Thai Finance
and Securities Plc, and Pacific Finance and Securities Plc
bankrupt and put them under absolute receivership on April 30,

Kamol Juntima, Chairman of the Financial Sector Restructuring
Authority (FRA), said these three companies which once were
under the supervision of the FRA have already distributed the
proceeds from asset sales amounting to Bt5,895.66 million to
their eligible creditors who had filed their claims according to
the FRA's rules and procedures, 96.98 percent of which
(Bt5,717.44 million) was paid to the Financial Institutions
Development Fund (FIDF).

Under the Bankruptcy Law procedures, the Official Receiver of
the Legal Execution Department is given sole authority to
liquidate the remaining assets of these three companies. The
creditors who have already received payments under the FRA's
procedures are entitled to receive additional payments in the
bankruptcy process for their outstanding debts. All the
creditors have to file claims with the Official Receiver within
two months after the receiving orders are publicized.

Kamol said, as of now, the FRA has brought 14 suspended
companies into bankruptcy process. In May 2001, five others are
going to be brought into the process and seven will be paying
debts to their creditors. In June 2001, ten companies will call
creditors' meetings and the remaining 20 will notify their
creditors of the results of claim adjudications.

Ekkapat Finance & Securities Plc was established on October
17,1994. It was one of 42 finance companies suspended on August
5, 1997. The company's creditors have been repaid amounting to
Bt2,161.45 million, of which Bt2,074.13 million was paid to the
Financial Institutions Development Fund (FIDF). After completing
debt repayment under the FRA's procedures, the company has
Bt1,288.61 million of remaining assets and Bt4,763.92 million of
outstanding debts as of February 28, 2001. Most of remaining
assets are under foreclosure process.

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,
Ronald Villavelez, Maria Vyrna Ni¤eza, Editors.

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

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