TCRAP_Public/010523.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

                  Wednesday, May 23, 2001, Vol. 4, No. 101


                               Headlines


A U S T R A L I A

ALPHA HEALTHCARE: Panel Rejects Application
ALPHA HEALTHCARE: Ramsay Welcomes Panel Rejection
ANACONDA NICKEL: Chairman Writes To S-Holders
BHP LIMITED: Settles Coal Prices
BHP LIMITED: Notice Of Director's Interests
BHP LIMITED: Posts Results Of EGM
DIAMOND PRESS: Goes Into Receivership
FRANKLINS AUSTRALIA: ACCC Reaches Deal Re Sale Of Stores
FRANKLINS AUSTRALIA: Woolworths Confirms ACCC Approval
HALESCOM: CBD Assessing Impact Of Liquidation
HALESCOM: CBD's CEO Resigns, Will Undertake Liquidation
HALESCOM: Liquidation In Full Swing
HIH INSURANCE: Offshore Assets Significant, McGrath Says
IMPULSE AIRLINES: Qantas Covers Impulse Passengers
INVESTMENT COMPANY: Coventry Arranges Special Dividend  
JOYCE CORP: Closes Sale Of Healthcare Unit
WINE PLANET: Cellarmaster Offers To Acquire Shares
WINE PLANET: Cellarmaster Pursues Compulsory Acquisition
WINE PLANET: Change in Substantial Holding From FBG
WINE PLANET: Suspension From Official Quotation


C H I N A   &   H O N G  K O N G

ALIVE NETWORKS: Shuts Down, Will Call In Liquidator
ASIA CAPACITY: Investors' Decision Ends Operation
ZHUHAI HIGHWAY: S&P Lowers Rating On US$85-M Notes


I N D O N E S I A

BAHANA PEMBINAAN: Bids To Repay 10% Of US$300-M Debt
HANSON INDUSTRI: Net Loss Up 125.2% In 2000
JAKARTA SETIABUDI: Undertakes Liquidation Of Unit


J A P A N

ASAHI OPTICAL: Aims To Close Lens Plant, Cut Personnel
DAIKOKUYA: Declared Bankrupt By District Court
SEGA CORP: Group Net Loss May Widen To Y58-B


K O R E A

DAEWOO MOTOR: GM Devising A Profit Model Analysis
HYUNDAI ENGINEERING: Foreign Debt Rescheduling Crucial
SK CORP: Moody's Ratifies Baa3 Ratings


M A L A Y S I A

BRIDGECON ENG'G: Reaches Out-Of-Court Settlements
LIEN HOE: Disposes Of Interests In African Unit
LIEN HOE: Reports Current Status Of Defaults
MALAYSIA LEADER: Posts Q1 Loss Of RM2.4-M


P H I L I P P I N E S

NATIONAL BANK: SEC Questions Disclosure Discrepancies
NATIONAL POWER:`Privatization' To Raise US$4.5-B  
NATIONAL STEEL: Malaysian Owners, Creditors To Meet
ORIENT COMMERCIAL: PDIC Appeals Court Ruling


S I N G A P O R E

ASIA PULP: Court Saves Unit From Closure
NATSTEEL LIMITED: Capital Reduction Plan Approved
RAFFLES HOLDINGS: Appoints New Chief Finance Head


T H A I L A N D

TELECOMASIA CORP: Board Approves Shares Issue, Warrants
TPI POLENE: Reports Changes In Q1 Results

     -  -  -  -  -  -  -  -

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


ALPHA HEALTHCARE: Panel Rejects Application
-------------------------------------------
Alpha Healthcare Limited received notification yesterday from
the Corporations and Securities Panel (the Panel) that the Panel
has declined to make a declaration of unacceptable circumstances
in relation to Ramsay Healthcare's bid for Alpha.

Alpha notes the intensive deliberations the Panel has undertaken
in considering this matter and will review the Panel's reasons
for its decision as soon as they become available. The
elaboration of the report is anticipated next week.

Alpha's Managing Director Mark Compton said, "We are obviously
disappointed, however we accept the Panel's decision and will
continue to support all shareholders through the bid process."

"We expect to have our Target's Statement in the mail to
shareholders by 25 May 2001 along with Ramsay's Supplementary
Bidder's Statement. Alpha shareholders are strongly advised to
do nothing in respect of their shareholding until they have
received and considered Alpha's Target's Statement and Ramsay's
Supplementary Bidder's Statement," Compton said.


ALPHA HEALTHCARE: Ramsay Welcomes Panel Rejection
-------------------------------------------------
Leading Australian hospital operator Ramsay Health Care Limited
was gratified by the decision of the Corporations and Securities
Panel yesterday to dismiss an application by Alpha Healthcare
Limited that Ramsay withdraw its takeover offer for Alpha.

"Alpha committed considerable resources to a lengthy Panel
hearing that in the end proved to be futile and an inappropriate
use of their shareholders' funds," Ramsay Managing Director Pat
Grier said.

"We reject totally any suggestion that our bid was
inappropriately structured. It complies with the law and market
practice. The Panel process has been an unnecessary and
unfortunate distraction for Alpha shareholders and we look
forward to a timely completion of the offer," Grier said.

"The fact remains that Ramsay is the only company with an offer
on the table for Alpha. Ramsay is in a strong position to
successfully complete the transaction, given its entitlement to
37.9 percent of Alpha's shares and its ownership of a
significant part of Alpha's outstanding debt," he said.

Grier said Ramsay would be seeking assurances from Alpha that
its Target's Statement provides Alpha shareholders with accurate
advice about the current position of the company and the likely
successful completion of Ramsay's takeover offer.

"Given the absence of a rival takeover bid, Ramsay expects
significant acceptances into its offer. We commend our offer to
Alpha shareholders," Grier said.


ANACONDA NICKEL: Chairman Writes To S-Holders
---------------------------------------------
Anaconda Nickel Limited Chairman Norman C Fussel wrote the
following statement addressed to Anaconda Nickel shareholders:

"I wrote to you on 6 April, to advise you that Allan Coogan had
retired as Chairman and that the Board of Anaconda Nickel
Limited had asked me to take on the position, which I did with
excitement about the future of your company.

"You may already be aware that I have had a lifetime of
experience in mining, metals, engineering and international
business. I was attracted to join the Board of Directors of
Anaconda Nickel Limited some six years ago as the company
provided an exciting opportunity for the development of a
lateritic nickel deposit in Australia that would go through to
the production of metal - nickel and cobalt - rather than
producing an intermediate product. I was, and remain, a champion
for the development of minerals resources in this country on a
fully value added basis.

"Six years ago the company was still in the exploration phase of
developing sufficient resources to justify the initial project
development at Murrin Murrin. As you are aware from the
company's reports it has gone on to develop a very extensive
geological resource base that has led to the development of
plans to expand in the future to a multiple property operation
which will have a major role in world markets.

"I remain excited about the future of Anaconda Nickel and the
nickel and cobalt business. It is an attractive business focused
on high strength and specialized steels and metals and will
continue to play a major role in world industrial markets.
Anaconda has the opportunity to grow into a major participating
role in the world business for those metals on the back of a
world class set of assets coupled with the technology, skills
and experience developed with our first Project. We have
developed a strong vision for the company.

"I advised you of the proposals that Anglo American plc had
presented to the Board including in my view an attempt to seek
effective control of the Company through board and management
changes, as opposed to a making a takeover offer for all your
shares.

"The independent directors of the company rejected the
ultimatums put forward by Anglo American and as reported on 4
April a formal request was received from Anglo American for a
meeting of shareholders to remove five of the members of the
Board including two independent directors, the Chief Executive
and the Chief Financial Officer. Subsequently a further formal
request was received from a number of shareholders for a meeting
of shareholders to remove the Anglo American main representative
on the Board.

"The company has issued a notice for a general meeting to be
held on 31 May in Perth to deal with both of these matters and
to provide the company with the capacity to undertake further
capital raising by way of share placements.

"I should stress that the issue is very much one for the
shareholders to decide.

"The Corporations Law provides for such situations and in the
normal democratic sense it will be the outcome of the vote that
decides whether Angelo American gains effective control of the
company.

"While accepting that the vote is clearly a matter that will be
decided by shareholders, it is a clear responsibility of Board
members to do the best for all shareholders of the company. It
is for this reason that the independent directors have taken the
view that, given the criticism forthcoming from its largest
shareholder, a full review should be undertaken of the group's
assets and financial options to be reported to all shareholders
by July 27. A number of world renowned external advisers are
being retained along with our own skills to put that review
together. It will draw together a concise and focused view of
what the future opportunities are for Anaconda Nickel.

"Contrast this with Anglo American's request for far reaching
board and management changes prior to the review being
undertaken.

"There are a number of matters that are quite clear:

"* The Murrin Murrin nickel and cobalt mine and plant that
produces final product will, in time, achieve planned design
capacity. The plant has recently been performing at 70% of
design capacity with cash operating costs in the low range of
world competition.

"* The plant, which was `mechanically completed' in December
1999, has required very substantial modification and
rectification to cure problems arising from its construction and
as you know this is the subject of substantial litigation
between the company and Fluor Daniel. I am confident of the
strength of the company's claims and the expected positive
outcome for the company.

"* The technology used in the Murrin Murrin operations has
proven its robustness as a process and is the first step in
leading the company into a major position in the world nickel
and cobalt supply markets.

"* The company, ever since its incorporation, has been engaged
in a very active exploration and ground acquisition program with
a view to giving it the opportunity to expand dramatically to
become one of the major players in the world nickel and cobalt
markets. You will have seen in our quarterly reports over time,
the great advances that have been made in this regard.

"* Anglo American were given adequate opportunity to evaluate
for themselves the opportunity associated with an investment in
Anaconda Nickel in mid-1999 and following that they made a
significant investment which they have since added to using the
`creep' provisions of the Corporations Law. Since Anglo
American's original purchase they have been actively represented
at the board and have, as you would expect full access to the
operations of the company.

"Anglo American has publicly criticized the performance of the
management and board of Anaconda Nickel. I must put on the
record that the team at Anaconda Nickel are in my view, first
class, and they have shown the perseverance and foresight that
is required to take new technology and build a major undertaking
and then to see it ramp up to a present level of 70% of design
with plans for the full ramp up to be achieved in the next 12
months. I have confidence that this will be achieved.

"It is true that we still have work to do to get the plant to
its eventual capacity, but that is not unusual when dealing with
new technology and in particular building an enterprise that
produces final metal rather than an intermediate product. In
over 30 years of experience in the mining and metals business, I
have seen many such situations. No company in this business is
exempt from the difficulties that are always associated with
doing something new.

"Anglo has suggested that the company has been aggressively
financed. It comes down to a couple of issues:

"* Leverage has been used to enable, the Board to focus on
maximizing shareholder value at the end of the day and to take
advantage of a bond market that was prepared to support the
project at a time when equity markets were quite soft.

"* The balance sheet has shown the results of the deterioration
of the value of the Australian Dollar when our US Dollar debt is
expressed in Australian currency. It does not change the
underlying economics of what is fundamentally a US Dollar
business with our main commodities being sold in US dollars.

"Clearly, as the company moves to pursue expansion and further
projects, it will be necessary for the board to consider the
best financing alternatives - debt and equity - to give the
greatest shareholder value at the time.

"Anaconda Nickel has got to where it is today because it has a
great team of people. It is not a large team by world standards,
as we do not believe in bureaucracies. It is, however, a team
that brings with it a lot of skills and that has continued to
develop and add to those skills ever since incorporation.

"I have been proud to be a part of that team for many years now
and with your support would like to be part of the team going
forward.

"I urge shareholders to carefully consider the questions put
before the general meeting of shareholders and to make sure that
they do vote in person or by proxy so that they can have their
say in the future direction of the company.

"It is my recommendation to you to vote Yes for Resolutions 1
and 2 dealing with the facilitation of a placement and the
removal of Dr Campbell, and to vote No for Resolutions 3, 4, 5,
6 and 7 which are the resolutions to remove Messrs Forrest,
Masterman, Delaney, Adler and myself from the Board. For my
part, I will be voting that way too.

"It would, in my view, be most unfortunate if control of the
company were to effectively pass without all shareholders having
the opportunity to be adequately recompensed with a significant
control premium for their investment."


BHP LIMITED: Settles Coal Prices
--------------------------------
BHP Limited (BHP) announced yesterday it has settled terms for
the majority of its annually priced metallurgical coal
contracts. The following pricing and volume outcomes relate to
BHP-managed Queensland coal operations and are on a 100 percent
basis:

* Hard coking coal US dollar prices have increased by a weighted
average of 16 percent across all markets, with hard coking coal
sales volumes for next financial year expected to be about 35.5
million tons, up approximately two million tons from this
financial year.

* Semi-soft coal US dollar prices have increased across all
markets by a weighted average of 22 percent. Semi-soft sales
volumes are expected to be up to 9.5 million tons - similar to
the 2001 financial year.

A number of key changes have occurred in the structure of the
coal market, the most notable being replacement of the Japanese
coordinated buying system. As previously advised, BHP's approach
to coal price negotiations this year involved individual
negotiations with steel making customers in Japan, as well as
customers in other markets (Korea, Taiwan, India, Europe,
Brazil).

This approach differs to price negotiations in previous years
when a `benchmark pricing' system was established in Japan. The
benchmark price was commonly used in public reporting of coal
pricing settlements and, for BHP, only reflected the price
received for about 23 percent of its annual global coal sales.

The metallurgical coal market in Europe, where BHP has a
substantial market presence, has been particularly strong,
associated with the drop in exports of US coking coals. The
market in general has continued to strengthen over the course of
the last three months and it is expected that the remaining
settlements yet to be concluded will be in line with the
outcomes to date.


BHP LIMITED: Notice Of Director's Interests
-------------------------------------------
BHP Limited, in compliance with the Section 205G of the
Corporations Law posts the following notice of director's
interests:

Updating Notice

Name of Director       Barend (Ben) C Alberts

Name of Company        BHP Limited

Date of Last
Notification to ASX    January 01, 2000

Date Director's
Interest Changed       May 21, 2001
  

Alberts has a relevant interest in the following securities of
the company or related bodies corporate:

Type of security: Fully paid ordinary shares
Number of securities: 5000 beneficially held in his own name
                                                                    
On market acquisition

The director has an interest in the following contracts to which
he is entitled to a benefit that confers a right to call for or
deliver shares in, debentures of, interests in a collective
investment scheme made available by, the company or a body
corporate: Nil.


BHP LIMITED: Posts Results Of EGM
---------------------------------
BHP Limited announces that at the Extraordinary General Meeting
(EGM) held Friday relating to the proposed DLC Merger with
Billiton, all resolutions were passed by BHP shareholders.

The EGM approved the following resolutions:

Resolution 1: The DLC Merger.

Resolution 2: To adopt the new Constitution.

Resolution 3: A change of Company name.

Resolution 4: Appointment as a Director of Brian Gilbertson.

Resolution 5: The election as a Director of Michael Davis.

Resolution 6: The election as a Director of David Brink.

Resolution 7: The election as a Director of Cornelius
Herkestroter.

Resolution 8: The election as a Director of Derek Keys.

Resolution 9: The election as Director of Lord Renwick of
Clifton..

Resolution 10: The election as a Director of Barry Romeril.

Resolution 11: The election as a director of John Jackson.

Resolution 12: The increase in maximum aggregate Directors'
fees.

The implementation of the proposed DLC Merger is subject to the
receipt of all necessary regulatory approvals.


DIAMOND PRESS: Goes Into Receivership
-------------------------------------
Diamond Press, Australia's third largest printer, has been
placed into receivership, following the failure of the company's
administrators to clinch the sell-off of its assets, The Asian
Wall Street Journal reported over the weekend.


FRANKLINS AUSTRALIA: ACCC Reaches Deal Re Sale Of Stores
--------------------------------------------------------
The Australian Competition and Consumer Commission (ACCC) has
reached an in-principle agreement with Dairy Farm for the sale
of the 287 supermarkets in the Franklins' chain, the ACCC
Commissioner for Mergers and Acquisitions, Ross Jones, said
today.

The package to which the ACCC has agreed involves the sale of
200 stores to independent retailers, and a maximum of 67 stores
being sold to Woolworths. Independents will be offered around
two-thirds of the total sales value of the Franklins stores.

The package facilitates the entry of two new players into the
eastern Australian supermarket industry. Foodland Associated
Limited, an established supermarket operator in Western
Australia and New Zealand, will acquire 35 supermarkets in
Queensland and northern New South Wales. Further, 51 to 60
stores in NSW will be sold to a large overseas supermarket
operator capitalized at more than A$1.3 billion.

There will be an additional 112 stores sold through the Joint
Independent Divestiture Alliance between Franklins and Metcash.
The JIDA will assist in the sale of Franklins stores to
independent retailers in NSW, Victoria, Queensland and South
Australia.

The ACCC's approval of this deal is conditional on the parties
to the acquisition providing the ACCC with legally enforceable
undertakings that ensure that the stores that are designated to
independents in the package are ultimately transferred to them.

Woolworths will only be able to use the 'No Frills' product
brand name and the `Franklins' trade names for a transitional
period.

"The arrangement provides a major boost to the market share of
independent grocery retailers in Australia and provides a strong
third force in the supermarket industry sufficient to counter
concerns expressed over the strength of the major chains," he
said.

In reaching this in-principle agreement the ACCC accepted that
the Franklins business is in rapid decline, and that the
withdrawal of key stakeholder support was imminent. The ACCC was
concerned that an uncontrolled collapse of the chain would see
many more stores go to the major supermarket chains, with fewer
stores available for independents and new entrants than is the
case under the current proposal.

ACCC approval is conditional on receiving acceptable legally
enforceable undertakings for the divestiture of a number of
Woolworths stores to address local competition concerns.

The ACCC considered a number of other proposals put forward by
Dairy Farm. In January 2001 Dairy Farm and Woolworths put
forward a confidential proposal under which Woolworths would
acquire 133 stores. The ACCC expressed competition concerns in
relation to this package, and the parties subsequently withdrew
the proposal.

The current package sees the number of supermarkets to be
offered to Woolworths scaled back considerably from previous
proposals. The number of stores offered to Woolworths has been
halved from the proposal put forward by the parties in January.


FRANKLINS AUSTRALIA: Woolworths Confirms ACCC Approval
------------------------------------------------------
Woolworths' CEO, Roger Corbett, confirms that the Australian
Competition and Consumer Commission (ACCC) had provided a
clearance for the purchase by Woolworths of 67 Franklins stores
as part of a total package involving the sale of all of
Franklins 287 stores.

"Woolworths is pleased to have been given the opportunity to
further improve competition in the areas in which each of the 67
stores are located," Roger Corbett said.

"We expect to invest a considerable amount in upgrading these
stores and in improving the range, quality and price offer to
customers in these stores."

"The acquisition is subject to execution of documentation which
is imminent and would increase Woolworths share of the
Australian Food, Liquor and Grocery (FLG) market by
approximately 1.9 percent to 26.5 percent. This is still low, by
world standards," Corbett said.

"It will also provide the certainty of employment for
approximately 7,000 existing Franklins employees and enable them
to enjoy the tremendous opportunities for increased career
development as part of the Woolworths team."


HALESCOM: CBD Assessing Impact Of Liquidation
---------------------------------------------
In response to a query from the Australian Stock Exchange, CBD
Online, the parent company of Halescom, responded:

The directors are currently assessing the Company's position in
light of the closure and liquidation of Halescom and it would be
premature and potentially misleading for the Company to comment
on this issue at this stage. In making any projections of Q4
cashflows on the basis of Q3 actual cashflows consideration
needs to be given to the impact of Halescom on the results of
both periods, including taking the following into account:

* receipts from customers in Q3 were almost entirely derived
from Halescom activities; and

* operating payments in Q3 included $1.114 million of Halescom
staff costs (including redundancies) and $1.1162 million of
other operating payments for Halescom that will not recur in Q4.

The Company expects that its operating cashflows for the quarter
will be negative, however not to the extent reported in Q3. The
Company will require additional funding in the short term and
will be relying on the provision of continued financial support
from its second largest shareholder, Davstoc Investments.

The Company is currently reviewing its business operations with
a view to significantly reducing its operating expenditures. The
Company is also in the process of identifying possible cashflow
positive acquisitions, and investigating the possibility of
undertaking capital restructuring. Further announcements will be
made at the appropriate time.

As announced on 29 March 2001, projected consolidated results
for the CBD Online group, including Halescom, for the half year
ending 30 June 2001 indicate an EBITDA loss of at least $2.5
million. This compares with projected EBITDA profit of
approximately $0.5 million for the half year communicated to
shareholders and investors in a Supplementary Offer Information
Statement dated 22 December 2000.

The 29 March 2001 announcement also advised the market that the
Company has determined that the revenue projected for its
flagship business, CBD Online, is also showing a significant
shortfall for the current financial year.

The circumstances that have had an affect on the Company's
EBITDA are that Halescom, which was purchased in January 2001,
failed to deliver the EBITDA levels expected and, on a best case
scenario, would require 12 months to break even.

This was inconsistent with the forecast performance of Halescom
provided to the Company's directors during the acquisition
process. The Company notified the market on two separate
occasions (being 12 February 2001 and 29 March 2001) that the
Company's anticipated EBITDA was below levels previously advised
to the market.

The market was notified immediately upon this information
becoming available to the directors.

The Company's business objectives and strategies outlined in the
prospectus have changed since April 2000, being the date of the
prospectus. As stated in paragraph 2, the Company is reviewing
its business operations including its objectives and strategies.
ASX will be advised of the outcome of this review at the
appropriate time.

The Company confirms that it is in compliance with the Listing
Rules and, in particular, Listing Rule 3.1.

Reference is made to the information outlined in paragraphs 1 to
6. The poor performance and closure of Halescom has had a
significant impact on the Company. The Company is undertaking
urgent action to overcome its recent setbacks. The Company will
continue to rely, in the short term, on the ongoing financial
support of Davstoc Investments.

The Company's financial condition is adequate to warrant the
continued quotation of its securities and its continued listing.

Other factors that the Company considers are relevant are the
continued support of Davstoc Investments, its intention to
restructure, the reduction of its burn rate and the current
identification of suitable cash flow positive acquisitions. The
Company is also quickly working to establish a new board and
management team to assist the implementation of these measures.

On a further examination of our Appendix 4C return we discovered
an inadvertent error in the return arising from a
miscategorization of an amount of $1.307 million, which related
to proceeds derived from the Company's rights issue. These
proceeds were incorrectly entered into the section entitled `1.1
Receipts from customers' in the `Cash flows related to operating
activities' when it should have been entered into the section
entitled `1.15 Proceeds from issues of shares, options, etc' in
the `Cash flows related to financing activities'. An
appropriately amended Appendix 4C return is attached.


HALESCOM: CBD's CEO Resigns, Will Undertake Liquidation
-------------------------------------------------------
CBD Online Limited has announced that the Board has accepted the
resignation of the CEO Gary Greenbank.

According to C L Powell, the company secretary, this is in
accordance with its previous announcement dated 29 March 2001
which stated that, Greenbank, who was based in Sydney, had
agreed to terms with the Board that would see him undertake the
closure and liquidation of Halescom over the next two to three
months before leaving CBD Online, which will relocate all its
operations to Melbourne.


HALESCOM: Liquidation In Full Swing
-----------------------------------
Halescom, the Internet trading unit of CBD Online, is in  
liquidation, as of Friday last week, Australasian Business
Intelligence reported over the weekend.


HIH INSURANCE: Offshore Assets Significant, McGrath Says
--------------------------------------------------------
Tony McGrath of KPMG, the provisional liquidator of the
collapsed HIH Insurance Limited, has announced the company is
mulling over the issue of whether to implement a scheme of
arrangement to shield the company's creditors overseas, adding
that offshore assets of HIH in the United States and United
Kingdom "are very significant", The Asian Wall Street Journal
reported over the weekend.

McGrath said on a TV business program, "We're really dealing in
our mind with an insolvency where the principle theaters of
operation are U.K., U.S. and Australia, and we're trying to deal
with it as the company was instructed to deal with it, in an
international sense."

He continued, "The way it would work if in isolation, if the
Australian companies proceed into liquidation which is a
possibility.

"In a legal sense, the options that we're really contemplating
are whether or not the company should implement what is called a
scheme of arrangement, and the reason why you should implement a
scheme of arrangement in this case is really to accommodate the
fact that this is a complex multinational organization, and to
allow a series of rules to exist to accommodate offshore
creditors, domestic creditors and other creditors that might
emerge, and that is the process we're going through now.

"It may well be that ultimately the complexities of
international law mean that we can't get to that point and that
we do need to formally liquidate the companies. That's of no
major down side to the Australian based creditors but it may
disadvantage off shore creditors."

The liquidator also noted that they have already filed for
reprieve over the company's assets in the U.S. to "preserve the
position while we consider the various options that are
available, both domestically and internationally."

The company's liabilities have already exceeded A$3 billion, and
it will be fortunate enough for creditors to receive at least
half of that amount, The Journal said.


IMPULSE AIRLINES: Qantas Covers Impulse Passengers
--------------------------------------------------
Qantas Airways Limited said yesterday that it was providing
special arrangements for Impulse passengers holding tickets for
interstate jet services.

This follows the announcement by Impulse Executive Chairman,
Gerry McGowan, that Impulse would cease operating B717 services
from this evening between Sydney and Melbourne, Sydney and
Brisbane, Melbourne and Hobart and Newcastle and Melbourne via
Sydney.

Impulse will continue to operate its Beechcraft regional
services until Sunday 27 May.

Qantas CEO, Geoff Dixon, said: "From tomorrow, Qantas will honor
all tickets issued by Impulse for interstate jet services.

"Qantas telephone sales staff will attempt to contact every
Impulse passenger booked on a jet service to advise them of the
new flight and departure time on Qantas," he said.

"All departures and arrivals for interstate jet services will be
through Qantas domestic terminals and Qantas staff will be
available to direct Impulse customers to the appropriate area.

"Qantas staff will also be available in the Impulse regional and
express terminals in Sydney, the express terminal in Melbourne
and the international terminal in Hobart to assist passengers
during the transition phase."

Qantas will announce details for handling Impulse regional
customers later this week. Dixon added the commercial
relationship between Qantas and Impulse would result in a 13
percent increase in capacity in services to Hobart, including
nine daily Boeing 717 return services between Melbourne and
Hobart from 27 May and a new, non-stop Boeing 717 daily return
service between Sydney and Hobart from 1 June.


INVESTMENT COMPANY: Coventry Arranges Special Dividend  
------------------------------------------------------
Coventry Group, the Western Australian (WA) automotive dealer
that had a cross-shareholding with the Investment Company of the
West (ICW), has agreed to release a special dividend of A$0.391
per share in February next year. The release will be in addition
to an earlier dividend of A$0.15 per share, Australasian
Business Intelligence reported over the weekend. This dividend
distribution will bring the total payout from the ICW
liquidation, which was decided by the ICW's shareholders last
year, to A$0.541.

ICW was placed in liquidation last year as it was deemed non-
viable under the revised Australian taxation legislation, the
report said.


JOYCE CORP: Closes Sale Of Healthcare Unit
------------------------------------------
The directors of Joyce Corporation Limited announce that
following negotiations with a major international manufacturer
and supplier of complementary health care products, the Company
has reached agreement for the sale of its subsidiary, Joyce
Healthcare Group Pty Ltd. The sale, which is expected to be
finalized before 30 June 2001, will generate cash inflow of
approximately $9.5 million and profit of approximately $6.0
million. Further details will be provided once formal
documentation has been completed.

The Company's health care subsidiary is one of the assets which
the Board had previously identified for sale as part of its
strategic plan for the future direction of the Company, an
outcome of which is a reduction in financial gearing.

Gearing

Proceeds from the sale of the health care subsidiary together
with the proceeds from the sale of the Company's Melbourne
factory property will reduce the Company's bank debt by
approximately $17 million. The directors expect that by 30 June
2001 cash flows from the sale of the property and the health
care business together with cash flows from other sources will
meet the Bank's debt repayment requirements.

Appointment Of Administrator

The directors of Joyce Corporation Ltd advise that they have
appointed Ross Norgard and Bryan Hughes, of chartered accounting
firm Norgard Clohessy as joint and several administrators of the
Company.

As stated in the Company's letter to the Exchange dated 4 May
2001 (advising of the appointment of receivers and managers),
the directors believe that the Company has a financially viable
future and that the short-term issues facing the Company can be
successfully resolved.

Having considered the Company's future prospects and taken
professional advice on the matter, the directors formed the view
that the appointment of an administrator would best serve the
interests of all the Company's stakeholders.

This action is considered to be the best course to achieve an
outcome, which should result in an early retirement of the
Receivers and Managers and enable the requoting of the Company's
shares on the Exchange.


WINE PLANET: Cellarmaster Offers To Acquire Shares
--------------------------------------------------
Wine Planet Holdings Limited Chairman F Swan wrote the following
statement addressed to shareholders of the company:

"On 10 April 2001, Cellarmaster Wines Pty Limited, a wholly
owned subsidiary of Foster's Brewing Group Limited, offered to
acquire your Wine Planet shares. Our records show that
Cellarmaster has not received a valid acceptance of its offer
from you.

"As acceptances have been received in respect of more than 90
percent of Wine Planet shares, Cellarmaster proposes to acquire
your Wine Planet shares under the compulsory acquisition
provisions of the Corporations Law. The acquisition will be
effected for the same consideration as that offered by
Cellarmaster under its takeover offer (35 cents per Wine Planet
share).

"On completion of the compulsory acquisition procedure,
Cellarmaster will issue the consideration for your shares to
Wine Planet, who will hold the monies in trust for you and will
contact you in writing to notify you of this and to seek your
instructions as to how to deal with the monies.

"Wine Planet will be delisted from the Australian Stock Exchange
shortly after the close of the offer."


WINE PLANET: Cellarmaster Pursues Compulsory Acquisition
--------------------------------------------------------
Cellarmaster's takeover bid for the ordinary shares of Wine
Planet closed at 7:00 PM on 11 May 2001.

On behalf of Cellarmaster, Foster's Brewing Group Limited gives
notice under Listing Rule 3.3 that:

(a) as of 11 May 2001, Cellarmaster and its associates had a
relevant interest in 94.63 percent of the ordinary shares of
Wine Planet; and

(b) Cellarmaster has proceeded to compulsory acquisition of the
outstanding ordinary shares of Wine Planet and lodged a notice
of compulsory acquisition with the Australian Securities and
Investments Commission and the Australian Stock Exchange Limited
on 9 May 2001.


WINE PLANET: Change in Substantial Holding From FBG
---------------------------------------------------
Cellarmaster Wines Pty Ltd and Foster's Brewing Group Ltd
increased their relevant interest in Wine Planet Holdings
Limited on 11 May 2001, from 151,901,807 ordinary shares (94.63
percent) to 154,015,451 ordinary shares (95.95 percent).


WINE PLANET: Suspension From Official Quotation
-----------------------------------------------
The securities of Wine Planet Holdings Limited has been
suspended from quotation from the close of trading on Wednesday,
16 May 2001, in accordance with listing rule 17.4, following the
dispatch by Cellarmaster Wines Pty Limited on 9 May 2001 of
compulsory acquisition notices to dissenting offerees of the
Company.

Security Code: WIN


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


ALIVE NETWORKS: Shuts Down, Will Call In Liquidator
---------------------------------------------------
Alive Networks, the fledgling cable-TV channel devoted to
travel, finally shut down Monday after a half-year run, The
Asian Wall Street Journal reported yesterday. A liquidator will
be called in to formalize its closure,

Alive Network's Ian Henry, also the founder of Chinadotcom
Corporation, said in a statement: "We continue to believe that
Alive Networks' business proposition is sound and that its
potential is enormous.

"Our own funding, as well as our ability to raise additional
funds, has been crippled by the current world-wide market
downturn and lack of investor appetite for new and innovative
businesses."


ASIA CAPACITY: Investors' Decision Ends Operation
-------------------------------------------------
Asia Capacity Exchange (ACE), an Internet bandwidth broker, has
ended up in closure, following its major investors' decision to
shut down the company made early this month, South China Morning
Post reported yesterday.

According to ACE's biggest investor Richard Parkinson, the
company is currently seeking a buyer to take over its assets. He
told Post, "At this point it is not really operating as a going
concern."

ACE, Post said, was established in March 1999 as a business-to-
business portal for bandwidth trading among telecommunications
firms, Internet service providers (ISPs), and the like. It was
designed to become a prime player in the international market
for trading communications capacity as a product.


ZHUHAI HIGHWAY: S&P Lowers Rating On US$85-M Notes
--------------------------------------------------
Zhuhai Highway Company's senior notes worth US$85 million due
2006 received a downgrade from double-`C' to `D' rating from
Standard & Poor's (S&P), while the company's subordinated notes
worth US$115 million got a `D', Asia Pulse reported

The rating agency reasoned, "Numerous events of default have
occurred and are still continuing under Zhuhai's senior notes
indenture since the payment default on the subordinated notes in
July 2000."

Trustee Chase Manhattan Bank Limited, however, on April 23,
issued, upon the request of a majority of the senior
noteholders, a notice of acceleration to Zhuhai, which deemed
that the entire principal of all the senior notes and interest
accrued to be due and payable immediately pursuant to section
4.2 of the indenture, Pulse reported.

The trustee, furthermore, made a disbursement on May 14 among
all senior noteholders a fraction of the entire sum of US$25.6
million held at its accounts as called for in the notice of
acceleration.

S&P, nevertheless, deemed a payment default on the senior notes,
claiming that the trustee has yet to receive full payment due as
covered in the notice of acceleration.


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


BAHANA PEMBINAAN: Bids To Repay 10% Of US$300-M Debt
----------------------------------------------------
PT Bahana Pembinaan Usaha, the beleaguered state-owned
securities company, has proposed at a meeting with 27 creditors
Monday to repay 10 percent of its debts totaling US$300 million,
citing that this could be the most "realistic option", Jakarta
Post reported.

Company spokesman Yasser Arafat told Post, "Such an option is
the most realistic offer that can be made in the restructuring
of the company's debts." The other option presented was
liquidation, whose proceeds would then be divided
proportionately among all of Bahana's creditors, including the
Indonesian Bank Restructuring Agency.

The report said, the company's assets now stand at Rp1.1
trillion (or US$100 million, according to Post's conversion),
while debts are pegged at US$300 million.

An independent auditor will be appointed to conduct another
evaluation of the company's assets, which is expected to be
completed next month, Post said.


HANSON INDUSTRI: Net Loss Up 125.2% In 2000
-------------------------------------------
PT Hanson Industri Utama posted last year a net loss of Rp208.31
billion, up 125.20 percent from the previous year's net loss of
Rp92.50 billion, IndoExchange reported. The weakening
performance of the company was blamed on a sluggish sales
performance and exorbitant expenses.

Sales generated a total of Rp305.96 billion, a 13.03 percent
drop from the previous year's Rp351.82 billion, as cost of goods
sold declined 13.75 percent to Rp328.83 billion in 2000 from
Rp381.26 billion in the preceding year.

Operating expenditures, moreover, went up 12.07 percent to
Rp25.48 billion from Rp22.73 billion year-on-year.

The textile manufacturer also incurred foreign currency losses
despite its export-oriented business.  

The company's liabilities, at the end of the period, stood at
Rp712.32 billion, up 10.11 percent from the previous year's
recorded liabilities of Rp646.89 billion, thus inflating that
company's debt-to-equity ratio to 2,183.55 percent in 2000 from
632.74 percent in 1999.


JAKARTA SETIABUDI: Undertakes Liquidation Of Unit
-------------------------------------------------
PT Jakarta Setiabudi Property has liquidated its subsidiary PT
Skyline Service Indonesia (SSI), effective March 21, 2001,
pursuant to the unit's shareholders' meeting decision and as
regulated in Rule No. 13 dated March 27, 2001, IndoExchange
reported.

The reason cited was the termination of contracts. Jakarta
Setiabudi Property's President Director Tubagus Farid Wadji
said, "At present, SSI does not have new contract, which makes
the company's operating expenses bigger than its income."

Farid assured the subsidiary's liquidation would not have
adverse impact on the parent company's performance. SSI's assets
and equity were valued at Rp511 million and Rp492 million,
respectively, at the time of liquidation.

The liquidation, according to Farid, was expected to strip
Jakarta Setiabudi Property only about 0.03 percent of the
group's total assets, or roughly Rp256 million.


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


ASAHI OPTICAL: Aims To Close Lens Plant, Cut Personnel
-------------------------------------------------
Financially ill Asahi Optical Company, as covered by a new
medium-term management scheme, is pushing ahead with the plan to
slash jobs by 13 percent, or 300 workers, and padlock its
domestic replacement lens plant located in Saitama Prefecture,
Japan Times Online reported yesterday.

The plant's operations, according to the Times report, will be
relocated to other plants, including one in Vietnam in the next
year.

The Pentax camera maker posted, for the year ended March 31, a
consolidated net loss of Y1.24 billion, falling from Y12.14
billion net loss booked in the preceding year, the report said.


DAIKOKUYA: Declared Bankrupt By District Court
----------------------------------------------
The Fukushima District Court Monday pronounced the Daikokuya
department store bankrupt, after the store shut down its
business operations. Daikokuya was placed into court
receivership with debts amounting to Y9.1 billion, Mainichi
Shimbun reported yesterday.

Years ago, the company went into a financial reconstruction
program which eventually failed, the report said. The store,
whose capital was listed at Y60.72 million, employed a total of
185 employees.


SEGA CORP: Group Net Loss May Widen To Y58-B
--------------------------------------------
Analysts expect Sega Corporation may post its group net loss at
Y58 billion, or Y356.37 per share in the year's period ended
March 31, from Y42.9 billion last year, Bloomberg reported
yesterday. The projection was based on the expenses attributed
to the company's move to drop its Dreamcast videogame console,
and shift focus on software development.

The company's sales dipped to Y260 billion, dropping 23 percent.

Following this shift, Bloomberg said, the company went on
promoting its software development capabilities, and was able to
secure contracts along this line with Microsoft Corp, to design
its Xbox game console, Sony Corp, its PlayStation 2, Nintendo
Company, its GameCube, and Japan's NTT DoCoMo Inc, its Internet-
enabled cellular phones.

Sega announced it aimed to make a comeback this year, apart from
its thrust to cut its debts by March 2004. Sega also intends to
cut its 1,081-strong workforce at the parent company by 35
percent by March next year.


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


DAEWOO MOTOR: GM Devising A Profit Model Analysis
-------------------------------------------------
General Motors (GM), after finalizing its due diligence on
insolvent Daewoo Motor, has started working on a profit model
analysis for the Korean automaker, The Digital Chosun reported
yesterday.

According to the report, Korea Development Bank (KDB) President
Jung Keun-yong announced in a press conference it was not
expected that a GM bid proposal would be forwarded to his
office, adding that there has never been any information
regarding GM's bidding price.

Jung also explained that both KDB and GM had not yet set a
timetable for the negotiations, Chosun said.


HYUNDAI ENGINEERING: Foreign Debt Rescheduling Crucial
------------------------------------------------------
Hyundai Engineering & Construction Company (HDEC) is going to
call on its creditors for a rescheduling of its foreign debts,
all amounting to US$920 million, about 72 percent of which was
granted by foreign creditors, The Asian Wall Street Journal
reported yesterday, citing HDEC new CEO Shim Hyun-young.

This move is part of the company's rescue operations, Shim said,
adding that the company has already contracted Lazard, a Hong
Kong-based consulting outfit to manage the negotiations, which
was expected to take only about 15 to 20 days.

According to another Hyundai official, Korea's largest builder
defaulted payment on loans worth US$20 million to Morgan
Guarantee Trust Japan in April. The company, however, agreed to
repay the outstanding $14 million by the end of July, the report
said.

HDEC last year booked a net loss of W2.98 trillion. Currently,
its debts total W8.1 trillion, half of which is due to mature
this year.

The company, moreover, is working out to cut 20 percent of its
5,750-strong regular workforce. On Friday, the company is going
to appoint a new CFO, the report said.


SK CORP: Moody's Ratifies Baa3 Ratings
--------------------------------------
Moody's Investors Service has confirmed the Baa3 rating of the
senior unsecured debt securities of SK Corporation (SK).

The Baa3 rating reflects SK's position as the leading oil
refining and marketing company in Korea; its strong domestic
market share; and its strategic importance to the Korean economy
and national security.

Moody's says the rating also recognizes SK's improved debt
protection measures and the impact of future deregulation on the
Korean oil industry. The rating outlook is stable.

SK has made considerable progress in reducing debt burden over
the past year through asset sales and shareholders' rights
offerings in preparation for a fully deregulated market.

It is also attempting to strengthen its balance sheet structure.
However, the company's interest coverage and cash flow, as a
percentage of total debt, remain weak compared with its more
highly rated peers.

An upgrade in SK's ratings would depend upon management's
success in further reducing the company's financial leverage.

Moody's considers that SK requires a stronger equity cushion,
given its exposure to volatile crude and feedstock import prices
and its higher reliance on low-margin export markets as a result
of excess capacity at its Ulsan refinery, which in turn supports
SK's high operating rate.

Moody's believes, however, that in the absence of major capacity
projects at Korean refineries, gradual but increased demand for
oil products in Korea should help reduce low-margin exports over
time.

Historically, the Korean oil industry has been heavily
regulated, reflecting its vital importance to national security.
However, in order to strengthen the industry and to revitalize
the entire Korean economy, the government finally began the
deregulation process in 1997 and introduced competition among
domestic oil companies.

SK Corporation is Korea's largest oil refining and marketing
company. Based in Seoul, SK's other businesses include gas,
petrochemicals and coal.


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


BRIDGECON ENG'G: Reaches Out-Of-Court Settlements
-------------------------------------------------
Ann Joo Resources Berhad announced the legal suits between Ann
Joo and Bridgecon Engineering Sdn Bhd (Suit No. D2-22-2356-2000,
and Companies Winding Up D7-28-35-2001 Petition 2) had been
settled out-of-court with the debts owed by Bridgecon to Ann Joo
Trading Sdn Bhd (AJT) being fully paid. AJT is a wholly-owned
subsidiary of the Ann Joo.

The above Petitions 1 and 2 were withdrawn with no order as to
costs. Applications by BESB and Bridgecon Holdings Berhad
respectively to strike out the Petitions 1 and 2 and to stay
further proceedings on the Petitions were also withdrawn with no
order as to costs.

In respect to Suit No. D2-22-2356-2000, BESB and AJT have
mutually agreed not to proceed with legal actions and the
counterclaim, respectively, with no order as to costs.

All the subject legal suits have been fully and amicably
resolved.


LIEN HOE: Disposes Of Interests In African Unit
-----------------------------------------------
The Board of Directors of Lien Hoe Corporation Berhad say the
Company disposed of its entire shareholdings in Lien Hoe
(Africa) Sdn Bhd (LH Africa), on 21 May 2001. LH Africa is a
wholly-owned subsidiary, represented by 500,000 ordinary shares
of RM1.00 each. Cheng Kiew purchased the LH Africa shares for a
consideration of RM1.00 (Ringgit Malaysia One Only) subject to
the following conditions:

1. Cheng Kiew will cause LH Africa to repay the Company a sum of
RM36.027 million, being advances owing to the Company, from
future profits of LH Africa in the event its operations in
Liberia is revived.

2. Cheng Kiew will not dispose of/transfer the shares of LH
Africa to another party without prior consent of the Company.

LH Africa was incorporated in Malaysia on 17 May 1983. The
principal activity of LH Africa is investment holding. It holds
a 51 percent equity interest in Carlton Resources Inc.
(Carlton), which prior to its cessation of operations, was
involved in timber logging in Liberia. Based on the latest
audited accounts for the financial year ended 31 December 1999,
LH Africa recorded a loss of RM563,859 for the year and has a
deficit of RM36.35 million in its shareholders' funds.

The aforesaid inter-company advances of RM36.027 million had
been fully written off in the books of the Company.

Cheng Kiew was the Country Manager of LH Africa and was posted
to Liberia before the civil unrest in 1996 to oversee the timber
logging operations in Liberia. Mr Cheng Kiew has since resigned
on 30 April 2000.

The rationale for the disposal of LH Africa is to fulfill the
condition imposed by the Securities Commission in its approval
for the Company's corporate exercise on 30 May 2000 that the
Company must divest or wind-up its investment in Carlton and to
maximize recovery of the Company's cost of investment in and
advances paid to Carlton.

None of the directors and substantial shareholders of the
Company has any interest, direct or indirect, in the above
transaction and the transaction does not have any material
impact on the earnings and the net tangible assets of the
Company and its subsidiary companies.


LIEN HOE: Reports Current Status Of Defaults
--------------------------------------------
Lien Hoe Corporation Berhad released the current status of the
following defaults pertaining to the Loan Stocks of Lien Hoe in
accordance with KLSE Practice Note No. 2/98:

a. Loan Stocks interest from 1 January 2000 to 30 June 2000;
b. Loan Stocks interest from 1 July 2000 to 17 August 2000; and
c. Maturity and redemption of Loan Stocks due 17 August 2000

1. Reasons for default in payments:

As stated in our circular to loan stockholders dated 17 July
2000, the Company was adversely affected by the Asian financial
crisis, which resulted in the slowdown of the Malaysian economy
in general and the property market in particular. This has
affected the Company's ability to pay the Loan Stocks' principal
and interest when they fell due.

2. Measures taken to address the default:

The Company had on 30 May 2000 received Securities Commission's
approval for its restructuring exercise which includes inter-
alia, a capital reduction and rights issue of warrants. An
amount of RM36.7 million arising from this exercise has been
earmarked for partial redemption of the Loan Stocks while the
balance of RM7.1 million and Loan Stocks interest of
approximately RM4.1 million will be repaid via bridging loan
from financial institutions. This loan, if approved, will be
secured by a charge over the Company's property known as
Kompleks Lien Hoe in Johor Baru valued at RM126.976 million as
of 4 May 1998.

The restructuring exercise has also been approved by the
shareholders of the Company at an extraordinary general meeting
held on 23 November 2000. Subsequently on 10 January 2001, the
High Court of Malaya granted its sanction for the capital
reduction, which forms an integral part of the restructuring
exercise of the Company. The capital reduction was completed on
15 February 2001 and the other components of the restructuring
exercise will be implemented sequentially thereafter.

In view of the depressing local stock market condition, which
may adversely affect the progress of implementation of the
restructuring exercise, the Company is actively pursuing a bonds
issue by way of securitization of Kompleks Lien Hoe as an
alternative plan. The bonds issue, if successful, will raise
sufficient cash for the Company to redeem the Loan Stocks plus
any accrued interest in full.


3. Financial and legal implications in respect of the default in
payments of the outstanding sums:

Under the Company's proposed debt restructuring scheme as
facilitated by the Corporate Debt Restructuring Committee, Bank
Negara Malaysia, the major lenders to the Lien Hoe Group have
agreed to restructure the majority of the Group's debts. This
proposal has also the approval by the Securities Commission on
30 May 2000 and the shareholders approval on 23 November 2000.
Hence, there are no significant financial and legal implications
in respect of the default.


4. Lines of action available to the security holders against the
Company:

The Loan Stock is secured by a charge over the Company's
property known as Kompleks Lien Hoe in Johor Baru valued at
RM126.976 million as of 4 May 1998. Loan stockholders will
continue to have a claim against the Company in respect of their
respective holdings of the Loan Stock. The rights of the
registered loan stockholders will continue to be protected by
the terms of the Trust Deed, as amended by the Amendment Trust
Deed, and will continue to be represented by the Trustee,
Universal Trustee (Malaysia) Berhad.


MALAYSIA LEADER: Posts Q1 Loss Of RM2.4-M
-----------------------------------------
Malaysia Leader Universal Holdings Berhad posted for the first
quarter ended March 31 a net loss of RM2.433 million, on
revenues amounting to RM276.641 million, as opposed to a net
loss of RM14.076 million a year ago.

The company's pretax profit was pegged at RM708,000, as opposed
to pretax loss of RM11.298 million recorded in the corresponding
period last year.


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


NATIONAL BANK: SEC Questions Disclosure Discrepancies
-----------------------------------------------------
The Securities and Exchange Commission (SEC), through a letter
signed by SEC Corporate Finance Director Justina Callangan, has
ordered Philippine National Bank to furnish an explanation
regarding the discrepancies in the bank's disclosure on the
shareholdings of Lucio Tan, Business World reported yesterday.

Should the bank fail to do so and satisfy the commission, it
could be charged with violation of a provision on beneficial
ownership under the Securities Regulation Code (SRC), the
newspaper reported.

To explain the provision, World said, "Under the Securities Law,
any person who acquires directly or indirectly the beneficial
ownership of more than 5 percent of a class of security, should
submit to the Commission a sworn statement including the buyer's
personal background, purpose of the purchase and number of
shares acquired."

Callangan cited that the bank excluded Tan in the bank's 2000
annual report's list of stockholders, when Tan was listed as a
beneficial owner in the bank's information statement as of March
this year, the report said.

Apart from an explanation regarding the aforementioned matter,
the commission also ordered PNB to submit a revised annual
report, with the additional information in place, the newspaper
said.


NATIONAL POWER:`Privatization' To Raise US$4.5-B  
------------------------------------------------
National Power Corporation, the state-run power utility firm,
intends to raise as much as US$4.5 billion from its planned
privatization, which is going to entail the sale of company
assets, Malaya reported, citing Energy Secretary Jose Isidro
Camacho. The privatization could only happen, though, once the
power reform bill is passed by the 11th Congress on June 4.

The privatization of the power firm is covered by the bill, the
newspaper reported.


NATIONAL STEEL: Malaysian Owners, Creditors To Meet
---------------------------------------------------
Malaysian owner, Hottick Investment Limited, and local creditor
banks of beleaguered National Steel Corporation (NSC) are set to
meet this week to iron out their respective stand over the issue
on temporary operations of the steel maker's plant in Iligan
City, Business World reported yesterday.

The meeting has been facilitated through the mediation of the
Department of Trade and Industry (DTI). DTI Secretary Manuel
Roxas told World, "We will meet with them this week and we can
say this is a move closer in determining whose party will be
operating the plant."

The dispute between the two parties stemmed from a proposal of
Allengoal Steel Fabrication & Trading to re-open and
rehabilitate the said plant. The proposal met the opposition
from the local creditors, while Hottick was keen on granting
Allengoal's proposal.


ORIENT COMMERCIAL: PDIC Appeals Court Ruling
--------------------------------------------
The Philippine Deposit Insurance Corporation (PDIC) has filed a
petition with the Supreme Court (SC) appealing the Court of
Appeals decision regarding the closure of Orient Commercial
Banking Corporation (Orientbank) three years ago, so as to
proceed with the liquidation of the bank's assets, the Asian
Wall Street Journal reported over the weekend.

PDIC cited the appeals court overlooked some facts when it
overruled the resolution passed by the Monetary Board, the
policy-making body of the central bank (BSP), to close
Orientbank, the newspaper said. PDIC is asking the SC to uphold
the bank's closure.

In its ruling, the appeals court also put the authority of PDIC
as the Orientbank's receiver into suspension, thus deferring the
proposed sell-off of Orientbank's assets to cover its debts.

Orientbank started as a thrift bank before it went into
commercial banking in October 1997. Two months thereafter, the
central bank found out that the bank was illiquid and insolvent.
In less than two months Orientbank declared a bank holiday, the
newspaper said.


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


ASIA PULP: Court Saves Unit From Closure
----------------------------------------
The High Court of Singapore, last Friday, granted a request
filed by beleaguered Asia Pulp & Paper Company for a stay of
court proceedings in the case between Bank of East Asia Limited
and APP's Singaporean unit Paper Box Industries Pte Ltd, thus
thwarting a threat of imminent liquidation, The Asian Wall
Street Journal reported Monday.

Bank of East Asia claimed Paper Box owed the bank S$588,693.  
APP lawyers pushed for a stay on the case's proceedings to
thwart the threat of liquidation, which another bank creditor
Overseas Union Bank is set to pursue in accordance to the terms
of a debenture agreement.

This is the second time this month that APP was granted a stay
on all court proceedings the company and its units are facing.
Early this month, The Journal said, the Singapore's High Court
granted APP's request to forestall a winding-up petition filed
against APP by the Swedish pulp trading firm CellMark AB, citing
claims of over US$10 million.


NATSTEEL LIMITED: Capital Reduction Plan Approved
-------------------------------------------------
At the Extraordinary General Meeting of NatSteel Limited held on
26 March 2001, the holders of the ordinary shares of S$0.50 each
in the capital of the Company and the holders of redeemable
convertible cumulative preference shares of US$1.00 each in the
capital of the Company approved, among others, the reduction of
the share premium account of the Company by the sum of up to
S$318.2 million.

Such sum is to be applied towards the payment of S$0.87 for each
Ordinary Share, which has been issued and fully paid-up or
credited as fully paid-up. On 2 May 2001, the Capital Reduction
was confirmed by the High Court of the Republic of Singapore.

According to Company Secretary Lim Su-ling, the Board of
Directors of the Company is pleased to announce that the Order
of Court confirming the Capital Reduction was lodged with the
Registrar of Companies and Businesses for registration on 19 May
2001. The Capital Reduction accordingly took effect on 19 May
2001.


RAFFLES HOLDINGS: Appoints New Chief Finance Head
-------------------------------------------------
Raffles Holdings Limited announced Monday that Chong Kee Hiong
has been appointed Vice President and CFO of Raffles Holdings,  
effective 18 May 2001.

Prior to joining Raffles Holdings Limited, Chong was Senior Vice
President of Adroit Innovations Limited, in charge of Business
Development and Investments. He also oversaw the company's
financial and accounting functions and the launch of Adriot's
Initial Public Offering.

Before joining Adroit Innovations Limited, Chong was the Group
Financial Controller of Tuan Sing Holdings Limited, a public
listed company with interests in Property, Manufacturing,
Construction, and Trading, from 1997 to 2000. He was also the
Financial Controller of RSP Architects, Planners & Engineers
(Pte) Ltd, from 1995 to 1997.

Chong obtained his Bachelor of Accountancy from the National
University of Singapore on a KPMG Peat Marwick Scholarship in
1990. He is also a member of the Institute of Certified Public
Accountants of Singapore.

Corporate Information

On 23 April 2001, Raffles Holdings announced the acquisition of
Swissotels Hotel and Resorts, with its portfolio of 23 hotels.
With the acquisition, Raffles Holdings Limited enhanced its
position as the leading hotel chain headquartered in Asia
Pacific having a portfolio with the most extensive reach
worldwide, across the six continents of Asia, Europe, North
America, South America, Australia and Africa.

Raffles Holdings (post acquisition) has a portfolio of 39 hotels
with 13,457 rooms in 34 destination cities. Raffles Holdings is
a subsidiary of CapitaLand Limited, which has an asset base of
over S$18 billion. Both companies are listed on the Singapore
Exchange.

Raffles International Limited, formed in 1989, is the hotel
management arm of Raffles Holdings. Raffles International is a
name well respected in the industry for its standards of
quality, award winning concepts and innovative approach towards
hotel management.

Raffles International's hotels and resorts are marketed under a
two-tiered brand structure. The "Raffles brand" of hotels
distinguishes themselves by the highest standards of products
and services available in major cities on an international
level.

The "Swissotel brand" and "Merchant Court" hotels offer quality
accommodation and the full range of modern facilities and
amenities expected by today's discerning traveler, with an
emphasis on quality and comfort.

The Raffles International approach to each hotel is unique,
innovative and market-driven. Our commitment is to create and
manage hotels, which by their style and quality, are immediately
recognized as hotels of preference.


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


TELECOMASIA CORP: Board Approves Shares Issue, Warrants
-------------------------------------------------------
The following resolutions and recommendations were passed and
made by the Board of Directors of TelecomAsia Corporation Public
Company Limited at the Meeting No. 5/2001 held on May 21, 2001:

A. Acquisition of Assets (Equity Interest in Bangkok Inter
Teletec Co., Ltd.)

A.1 Consideration of the Acquisition of Assets and Connected  
Transaction.

The Board of Directors of the Company (with the CP Directors  
abstaining) passed a resolution authorizing the Company to issue
307,499,978 new ordinary shares and 100,000,000 equity warrants
to the Charoen Pokphand Group Co., Ltd., Chanloe Co., Ltd.,  
Voravit Janthanakul and/or any other designated person (CP
GROUP) in consideration for 614,999,956 ordinary shares in
Bangkok Inter Teletec Co., Ltd. (BITCO).

The Transaction is subject to the approval of the shareholders
and creditors of the Company, and shall be deemed completed upon
the acquisition of approvals, as well as upon the satisfaction
of certain conditions precedent related to the Transaction.

The Transaction is subject to the Notification of the Stock
Exchange of Thailand (SET) Re: Rules, Procedure and Disclosure
of Information Concerning the Acquisition and Disposition of
Assets of Listed Companies and the Notification of the SET Re:
Rules, Procedures and Disclosure of Connected Transactions of
Listed Companies.  

Consequently, the Transaction must be submitted to a meeting of
the shareholders of the Company for their consideration and
approval. The Transaction must be approved at the shareholders'
meeting by a vote of no less than three-fourths of the total
number of votes present in person or by proxy at the meeting and
entitled to vote, provided however that the interested
shareholders shall not be entitled to vote at the shareholders'
meeting. The Transaction will therefore be submitted to the
meeting of the shareholders of the Company for their further
consideration and approval.

In addition, as the CP GROUP will acquire additional shares of
the Company as a consequence of this Transaction, the
Notification of the Securities and Exchange Commission (SEC) Re:
Rules, Conditions and Procedures of the Acquisition of
Securities for the Purpose of Taking Over a Business is also
relevant. The CP GROUP must therefore request a waiver of the
mandatory tender offer from the shareholders of the Company and
the SEC.

The details of the Transaction appear in the Information
Memorandum.

A.2 Acknowledgement of the Preliminary Presentation by Jardine
Fleming Thanakom Securities Limited.  

In connection with the resolutions to referred in A.1 above, the
Board of Directors of the Company has received the preliminary
presentation by Jardine Fleming Thanakom Securities Limited
(JFT), the independent financial advisor selected by the Sub-
Committee to issue a fairness opinion on the fairness of the
Transaction from a financial point of view, and noted that a
written fairness opinion would be issued by JFT to the
independent directors of the Company.

A.3 Consideration of the Proposal to Increase the Authorized
Capital of the Company and Approving the Allotment of New
Ordinary Shares From the Increased Authorized Capital. In
connection with the resolutions referred to in A.1 above, the
Board of Directors of the Company (with the CP Directors
abstaining) passed a resolution authorizing the increase of the
authorized capital of the Company from Bt29,831,500,000 to
Bt33,906,499,780 by issuing 407,499,978 new ordinary shares with
a par value of Bt10 per share as compensation to the CP GROUP in
consideration of the shares acquired by the Company in BITCO.

In connection with the resolutions referred to in A.1 above, the
Board of Directors

a. 307,499,978 ordinary shares shall be allotted to the CP GROUP
in consideration of the shares acquired by the Company in BITCO.
The Company will file an application to the SET for approval of
the new shares issued to the CP GROUP after all conditions
precedent related to the Transaction have been satisfied.

b. 100,000,000 ordinary shares shall be reserved as the
allocation for the exercise of the equity warrants to be issued
to the CP GROUP in consideration of the shares acquired by the
Company in BITCO.

This matter will be submitted to the meeting of the shareholders
for their further consideration and approval.

A.4 Consideration of the Proposal to Amend the Memorandum of
Association of the Company. As a consequence of the said
proposed increase in the authorized capital of the Company, the
Board of Directors of the Company (with the CP Directors
abstaining) passed a resolution to replace Clause 4 of the
existing Memorandum of Association of the Company with the
following:

"Clause 4. The authorized capital is Baht 33,906,499,780
equivalent to 3,390,649,978 shares, divided into 2,688,649,978
common shares and 702,000,000 preferred shares."

This matter will be submitted to the meeting of the shareholders
for their further consideration and approval.

A.5 Consideration of the Proposal to Issue Equity Warrants to
the CP GROUP. In connection with the resolutions referred to in
A.1 above, the Board of Directors of the Company (with the CP
Directors abstaining) passed a resolution to approve the
issuance of 100,000,000 equity warrants to the CP GROUP in
consideration for the shares acquired in BITCO.  The details of
the warrants are as follows:  

Type of warrants:       Equity warrants
Number of warrants to be issued :       100,000,000 units
Maturity:       2 years from the Closing Date of the
Transaction
Exercise ratio:       Each equity warrant is exercisable into
one fully paid-up ordinary share of the Company
Exercise price : Bt32 per share
Exercise period: No earlier than 6 months and no later 2 years
from the Closing Date of the Transaction
Number of shares reserved
for the exercise of warrants: 100,000,000 shares

This matter will be submitted to the meeting of the shareholders
for their further consideration and approval. At the
shareholders' meeting, the shareholders shall also be required
to authorize the Board of Directors and/or any person delegated
by the Board of Directors to amend the terms and conditions of
the warrants, and to undertake any action necessary or related
to the issuance of the warrants.

A.6 Consideration of the Waiver of the Mandatory Tender Offer by
the CP GROUP.
  
As a consequence of the Transaction, the CP GROUP will increase
their shareholding exercises its 100,000,000 warrants).  The CP
GROUP therefore falls under the criteria of the Notification of
the SEC Re: Rules, Conditions and Procedures of the Acquisition
of Securities for the Purpose of Taking Over a Business. In
consideration of the foregoing, the Board of Directors of the
Company passed a resolution to approve and submit the waiver of
the mandatory tender offer requirement to a meeting of the
shareholders of the Company for their consideration and
approval.

B. Reduction of Foreign Currency Exposure

B.1 Consideration of the Approval of the Issuance and Offer of
Debentures.  

After due consideration, the Board of Directors of the Company
passed the following resolutions in connection with the approval
of the issuance and offer of debentures:

B.1.1 The Board of Directors approved the issuance and offer to
sell various types of debentures in one whole lot or in multiple
placements depending on the discretion and conditions of the
Board, or authorized directors.  The debentures will be issued
in Thai Baht, within the sum of not over Bt36,000 million, in
accordance with the following details:

Use of Proceeds: To repay existing debt.
Type: Amortization or Bullet Payment, Secured or Unsecured         
Debenture, which suit prevailing market conditions.
Currency: Baht, and/or any other currencies.
Amount: The principal amount of debentures will not exceed
Bt36,000 million, or equivalent, in any other foreign
currencies.
Offering: Offered domestically to the public and/or
institutional investors in whole or in part which could be
single or multiple offering.
Interest: Subject to the prevailing market conditions at the
time of issue and offering.
Maturity: Not exceeding 20 years.

Early Redemption: Debenture-holders and/or the Company may or
may not hold the right to redeem the debentures prior to
maturity. This will depend on the conditions of each issue of
the debentures.
Special Conditions: In the case that there has been a bond
redemption, within the amount approved, the Company can replace
it with an additional bond of the same nature and under the
conditions and amounts given here above.

Additional restriction and conditions of the Bond, such as, face
value, offered price per unit, interest rate, appointment of
Bond holders' representatives, allocation method, offering
details, early redemption, an account to be established to
receive the proceeds from the sale of the Bond, and listing in
one or more of the securities exchange markets shall be
considered and decided by the Board of Directors, or persons
assigned by the Board of Directors.
        
B.1.2 The Board of Directors authorized the President and the
Chief Financial Officer, acting jointly, to have power to
specify or change the details and conditions relating to the
issue and offer for sale of such debenture, and also to have
authority to do any acts and things necessary for and in
relation to carrying out of the issuance and the offer for sale
of such debenture in compliance with the applicable law.

The foregoing transaction will therefore be submitted to the
meeting of the shareholders of the Company for their further
consideration and approval.

B.2 Currency Swap: Consideration of Approving the Entering Into
of a Payment and Indemnity Agreement and Connected Transaction.  
The Board of Directors of the Company were advised that the
Company entered into the US Dollar Amendment Agreement dated 22
December 1999 (the US Dollar Amendment Agreement) with Citicorp
International Limited (as Agent) and the lenders named therein,
including Kreditanstalt F?r Wiederaufbau (KfW) and the Security
Agreement Amendment and Restatement Agreement dated 22 December
1999 (the SAARA) with the banks listed therein (including KfW)
and other parties whereby the Company has obligations to make
repayment of advances in US Dollars to the Banks (including
KfW).

The Company is seeking to enter into an arrangement to reduce
its exposure to the currency exchange rate fluctuation and KfW,
a major shareholder of the Company, has agreed to assist the
Company in this regard.  Consequently, KfW is willing, subject
to the terms and conditions under the draft Payment and
Indemnity Agreement (the Agreement) proposed to be entered into
between the Company and KfW, to accept repayment from the
Company under the US Dollar Amendment Agreement of a portion of
its share of certain repayment installments in Thai Baht rather
than US Dollars.

The Board of Directors of the Company has passed a resolution
concerning the entering into and performance of the transactions
generally contemplated in the Agreement whereby the Company will
make payment of fixed amounts in Thai Baht to satisfy the
corresponding portion of the payment obligation in US Dollars to
KfW under the US Dollar Amendment Agreement, and to reimburse
and indemnify KfW for costs, expenses, losses, etc. in
connection with the Agreement, the swap agreement between KfW
and the third party and certain related documents.

The foregoing transaction is deemed to be a connected
transaction pursuant to the Notification of the SET Re: Rules,
Procedures and Disclosure of Connected Transaction of Listed
Companies, which must consequently be submitted to a meeting of
the shareholders for their approval.  Details of the transaction
appear in the attached Information Memorandum regarding the
arrangement to reduce the foreign currency exposure of the
Company.

C. Consideration of Convening the Extraordinary General Meeting
No. 1/2001 of the Shareholders of the Company.

The Board of Directors of the Company approved the convening of
the Extraordinary General Meeting No. 1/2001 of the Shareholders
of the Company on June 28, 2001 at 2:00 p.m. at the Auditorium
Room, 21st Floor, Telecom Tower, 18 Ratchadaphisek Road, Huay
Kwang, Bangkok 10320, Thailand, in accordance with the following
agenda:

C.1 To approve and adopt the Minutes of the Annual Ordinary
General Meeting of the Shareholders of the Company for the Year
2001.

(The Board of Directors recommended that said Minutes be
approved and adopted.)

C.2 To consider and approve the acquisition of assets by the
Company and the Connected Transaction referred to in A above.

(The Board of Directors recommended that the Transaction be
approved.)

C.3 To consider and approve the increase of the authorized
capital of the Company from Bt29,831,500,000 to Bt33,906,499,780
by issuing 407,499,978 ordinary shares, with a par value of Bt
10 per share, and to further consider and authorize the
allotment of the 407,499,978 ordinary shares as: (a) 307,499,978
ordinary shares to be issued to the CP GROUP; and (b)
100,000,000 ordinary shares to be reserved as the allocation for
the exercise of the equity warrants to be issued to the CP
GROUP, all in consideration for the shares acquired by the
Company in BITCO.

(The Board of Directors recommended that the increase of
authorized capital be approved.)

C.4 To consider and approve the amendment of the Memorandum of
Association of the Company to conform with the increase in the
authorized capital of the Company.

(The Board of Directors recommended that the amendment of the
Memorandum of Association of the Company be approved.)

C.5 To consider and approve the issuance of the 100,000,000
equity warrants to the CP GROUP in consideration of the BITCO
shares acquired.

(The Board of Directors recommended that the issuance of the
equity warrants by the Company be approved.)

C.6 To consider and approve the waiver of the mandatory tender
offer requirement by the CP GROUP.

(The Board of Directors recommended that the waiver of the
mandatory tender offer requirement be approved.)

C.7 To consider and approve the issuance and offer of debentures
referred to in B.1 above.

(The Board of Directors recommended that the issuance and offer
of debentures be approved.)

C.8 To consider and approve the entering into of a Payment and
Indemnity Agreement and the Connected Transaction referred to in
B.2 above.

(The Board of Directors recommended that the Payment and
Indemnity Agreement and currency swap be approved.)

C.9 Other business (if any).

D. Specification of the Date for Closing of the Share Register
Book. The Board of Directors of the Company specified that the
period for closing of the Share Register Book of the Company for
the purpose of determining which shareholders shall be entitled
to attend the Extraordinary General Meeting No. 1/2001 of the
Shareholders of the Company shall commence on June 7, 2001 at
12.00 noon and shall terminate commensurate with the termination
of said Meeting.

The Board of Directors appointed Supachai Chearavanont,
President and CEO of the Company, as the individual authorized
by law to amend the date, time and agenda of the Extraordinary
General Meeting No. 1/2001 of the Shareholders of the Company,
as well as to amend the period for closing of the Share Register
Book for the purpose of determining which shareholders shall be
entitled to attend the Meeting.


TPI POLENE: Reports Changes In Q1 Results
-----------------------------------------
TPI Polene Public Company Limited would like to provide
information regarding changes in the Consolidated Financial
Statement for the first quarter ended March 31, 2001, reviewed
by the auditors of the Company as follows:

Total consolidated revenue increased by Bt892 million from
Bt3,516 million in first quarter 2000 to Bt4,408 million in
first quarter 2001. This 25.37 percent increase in total revenue
was attributable to an increase in cement sales revenue in both
domestic and international market, which was up by 21.59 percent
and 68.96 percent over first quarter 2000, respectively.

In addition, LDPE/EVA sales revenues increased in both domestic
and international market by 8.63 percent and 39.89 percent over
the same period in the previous year, respectively.

Gross revenue picked up by Bt296 million from Bt956 million in
first quarter 2000 to Bt1,252 million in first quarter 2001, a
substantial increase of 30.96 percent. Total consolidated net
loss was at Bt857 million in first quarter 2001 as compared to
net loss of Bt296million in first quarter2000. An increase of
189.53 percent was mainly resulted from loss on foreign exchange
of Bt574 million.

Pursuant to the Debt Restructuring Plan, the Company has to
raise an equity fund of at least US$180 million in cash to be
used for the payment of existing borrowings of US$219 million
under the Voluntary Debt Repurchase Process at discount by June
2001. If fund raising could be successfully exercised within
June 2001, the Company would be able to recognize gain from
redemption of debt securities and gain on debt compromise as the
Company could acquire indebtedness at discount under the
voluntary Debt Repurchase Process.

In addition, the Company has to convert an accrued interest as
at November 30, 1999 owed by the Company and TPI Concrete Co.,
Ltd. for the amount of approximately Bt6,000 million together
with guarantee fee into equity at a the same price and time as
the equity fund raising of US$180 million will be exercised. In
effect, this will bring down the debt equity ratio of the
Company to be at an appropriate level with the lower risk of
foreign exchange together the reduction in the interest expense
subsequently.


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

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