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            T R O U B L E D   C O M P A N Y   R E P O R T E R

                        A S I A   P A C I F I C

                  Thursday, May 31, 2001, Vol. 4, No. 106


                               Headlines



A U S T R A L I A

ALPHA HEALTHCARE: Ramsay Raises Relevant Interest
ANACONDA NICKEL: Gets Backing Of Warburg Pincus
ANACONDA NICKEL: Financing Arrangements Talks Continue
ANACONDA NICKEL: Trading Halt
ANSETT AIRLINES: Qantas Confirms Talks With AIZ
NORMANS WINES: Hope Sparked By Merger With Xanadu
ONE.TEL LIMITED: Appoints Admin'r; Pulls Rights Issue
ONE.TEL LIMITED: Insolvent; Won't Proceed With Rights Issue
ONE.TEL LIMITED: Securities Suspended
PASMINCO LIMITED: Posts Response To Media Articles


C H I N A   &   H O N G  K O N G

COSMOS COUNTRY: Hearing of Winding Up Petition Set
EVER FIRST: Winding Up Petition Slated For Hearing
HONG KONG CONSTRUCTION: Debt Standstill Goal For Talks
HONG KONG CONSTRUCTION: New Non-Exec Director Appointed
HONG KONG CONSTRUCTION: Reports Net Loss Of HK$1.153-B
HONG KONG CONSTRUCTION: Posts Notice Re AGM
SINO MARK: Faces Winding Up Petition
SIU FUNG: Placed In Third Stage Of Delisting
WORLD TRAVEL: Winding Up Petition To Be Heard


I N D O N E S I A

BANK DAI-ICHI: IBRA Sells 15% Stake
INTI INDORAYON: Moody's Affirms, Withdraws Ca Rating
WICAKSANA OVERSEAS: Selling Stake In Jakarana Tama


J A P A N

HASEKO CORP: Posts Pretax Profit Of Y14.78-B
MITSUBISHI CHEMICAL: Moody's Confirms Baa3 Rating
MITSUBISHI MOTORS: Devises ERP To Cut Up To 1,200 Jobs


K O R E A

HYNIX SEMICON: Completes Spinoff Of Non-Core Ops
HYNIX SEMICON: Newbridge Eyes Acquisition Of US$200-M GDRs
HYUNDAI MERCHANT: Seven Trips Scheduled in June


M A L A Y S I A

BRIDGECON HOLDINGS: Posts Notice Re AGM
BRIDGECON HOLDINGS: Reports Proposals' Status  
CELCOM (MALAYSIA): Court May Impose Wind-Up, Source Says
JUTAJAYA HOLDING: Board Aborts Workout Bids
MAN YAU: Court To Hear Application For Creditors Meeting
RAHMAN HYDRAULIC: Posts Notice Re AGM


P H I L I P P I N E S

NATIONAL BANK: Rehab Plan Shelved
NATIONAL POWER: Losing Strength, ADB Says


S I N G A P O R E

BRIERLEY INVESTMENTS: Conflicted Chair Steps Aside
LIM KAH NGAM: Subsidiaries Established
SEMBCORP INDUSTRIES: To Issue $150-M Medium-Term Notes


T H A I L A N D

PHAYATHAI 2: Creditors, Planner Call For Plan Revisions
PHAYATHAI 2: Planner Clarifies Report Re Merger
PRASIT PATANA: SET Lifts "SP" Sign
THAI HEAT: Court Extends Submission Of Plan Deadline

     -  -  -  -  -  -  -  -

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


ALPHA HEALTHCARE: Ramsay Raises Relevant Interest
-------------------------------------------------
Ramsay Centauri Pty Limited increased its relevant interest in
Alpha Healthcare Limited on 28 May 2001, from 16,347,767
ordinary shares (37.5 percent) to 16,885,747 ordinary shares
(38.7 percent). On 29 May, 2001, Ramsey increased its relevant
interest again, from 16,885,747 ordinary shares (38.7 percent)
to 21,256,847 ordinary shares (48.7 percent).


ANACONDA NICKEL: Gets Backing Of Warburg Pincus
-----------------------------------------------
American firm Warburg Pincus Capital is backing Anaconda Nickel
by underwriting a rights issue to the latter's shareholders for
a cash consideration of over $90 million, AAP reported Tuesday,
citing a media report.

It was also reported, that Anaconda is mulling over GE Capital's
second proposal to include debt and equity.


ANACONDA NICKEL: Financing Arrangements Talks Continue
------------------------------------------------------
As previously referred to in the March Quarterly Report Anaconda
Nickel Limited, and a further release of May 15, Anaconda Nickel
Limited has advanced negotiations and discussions regarding a
A$140 million structured finance facility and an equity
injection of A$110 million.

These discussions with various parties have included General
Electric Capital and Warburg Pincus LLC.

A third offer for equity has also been received.


ANACONDA NICKEL: Trading Halt
-----------------------------
The securities of Anaconda Nickel Limited will be placed in pre-
open pending the release of an announcement by the Company.
Unless ASX decides otherwise, the securities will remain in pre-
open until the earlier of the commencement of normal trading on
today, 31 May 2001 or when the announcement is released to the
market.

Security Code: ANL


ANSETT AIRLINES: Qantas Confirms Talks With AIZ
-----------------------------------------------
Qantas Airways Limited confirms it has been approached to
consider a transaction that would involve Qantas taking a
significant stake in Air New Zealand and Air New Zealand selling
Ansett and Ansett International to Singapore Airlines.

Following the proposal, Qantas had preliminary discussions with
the major shareholders in Air New Zealand, Singapore Airlines
and Brierley Investments Limited, and also the Chairman of Air
New Zealand, Sir Selwyn Cushing.

Qantas CEO Geoff Dixon says Qantas will await further advice or
contact from the Board of Air New Zealand and the two major
shareholders in Air New Zealand before deciding whether it will
take the matter further.


NORMANS WINES: Hope Sparked By Merger With Xanadu
-------------------------------------------------
Normans Wines Limited Managing Director R Hay wrote the
following letter to Normans Wines shareholders and convertible
noteholders:

"The past few months have been an intense period of change for
Normans Wines' and I am writing to update you on recent
activities.

"There were a number of initiatives announced with the Normans
half yearly results in March this year that are outlined below,
as well as a major recent announcement regarding a proposed
merger with Xanadu Wines Ltd.

"Should it be approved (by shareholders and noteholders of
Normans and shareholders of Xanadu), and satisfy relevant
regulatory requirements such as Court approval, the merger will
see Normans become a wholly-owned subsidiary of Xanadu. Normans
shares and convertible notes will convert to shares and
convertible notes in Xanadu. The details of the conversion will
be specified in the scheme booklet to be sent to shareholders
and noteholders in connection with the merger, which is
addressed further below.

"The proposed merger is positive news for the company's
shareholders and convertible note holders as it ensures the
future viability of Normans Wines. The proposed merger is the
result of an extensive search by the company, locally and
overseas, for a strategic partner to support the business in its
attempt to strengthen the balance sheet and implement its
strategic plan.

"Half-Year Results

"At the announcement of the half yearly results in March we
outlined the progression of the company's commitment to exit the
bulk wine market with the announcement of a non-binding Heads of
Agreement with Simeon Wines Ltd to dispose of our Monash Winery
and associated assets. Negotiations are continuing and to
further the sale process, the Company is currently conducting an
open tender process on the Monash Winery. The sale process will
include the assignment of the Riverland and Sunraysia grower
contracts. Proceeds from the prospective sale are intended to be
used for the reduction of debt and to support marketing and
sales activities for several of Normans' new brands locally and
internationally.

"The Board also outlined the full review of the carrying value
of all assets, which resulted in significant writedowns and
restructuring costs to ensure a strong and sustainable platform
for Normans' future. The writedowns were associated with the
exiting of the bulk wine business and total $5.8 million in
inventory and other adjustments. Interest expense for the period
was $2.28 million.

"In addition, the write off of intangible assets totaling $0.24
million and the loss on sale of the Kuitpo vineyard of $0.73
million contributed to our overall operating loss after tax of
$10.2 million. In arriving at this result, the future income tax
benefit of the tax losses was not recognized.

"Improved Trading Performance

"At an operating level, Normans' core business returns improved
$1,597,609 on an Earnings Before Interest and Tax, Depreciation
and Amortization (EBITDA) basis, announcing a loss of $201,375
from operations prior to writedowns, compared to a loss of
$1,798,984 on a comparative basis with the corresponding period
last year.

"International and Australian market sales have continued to
show significant improvement, with total sales revenue for the
half year of $14.9 million compared to $13.2 million for the
corresponding period last year, an increase of 12.9 percent.

"This encouraging trend has continued since the end of last
year, with total branded sales for January through April this
year being 99 percent ahead of the same period last year: 246
percent for export and 40 percent for domestic sales.

"Key highlights of the improved operating performance for the
half-year were:

"* International sales were up 38.9 percent to $4.14 million,
with sales forecast to be approximately $10.5 million 30 June
2001, a 140 percent increase on the prior year.

"* Australian sales were up 9.6 percent to $8.23 million, with
sales forecast to be approximately $17 million to 30 June 2001,
a 28 percent increase on the prior year.

"* Gross margins increased for both International and Australian
sales, with continued improvements expected.

"* Operating expenses were 12.4 percent down on the prior year.

"The turnaround of the branded bottle wine business is well
underway, as evidenced by the accelerated growth in sales and
enhanced margins into the second half.

"Normans has identified a number of key brands for development,
including Chandlers Hill, Lone Gum and Encounter Bay. These
brands have been repositioned in the market to meet consumer
demand, with the result being a number of new listings in the UK
and Australia. The strategy is to continue to drive Normans with
a manageable portfolio of easily identifiable brands with
appealing shelf presence and value for money.

"Bank Facilities

"During the half year to December, the consolidated entity
breached certain covenants contained in its lending agreement
with its principal financier. As a consequence, the principal
financier has placed the facility on demand, but has undertaken
that it will not make demand for repayment of the facilities
prior 1 August 2001, providing certain conditions are met. The
planned restructuring of the business, which includes asset
sales and equity injections as outlined in this letter is
designed to ensure that Normans satisfies these conditions.

"The conditions imposed by our financier include the reduction
of debt by the sale of the Monash Winery and the sale of the
Evanston Gardens and Strathbogie vineyards, and to fund the
continuation of negative cash flow trading by further capital
injections without encumbrance to any security provided to the
Bank. If the Company cannot meet these conditions, the Bank can
require immediate repayment of all of its facilities.

"Accordingly the ability of the consolidated entity to pay its
debts as and when they fall due, and the appropriateness of
adopting a going concern basis of accounting, is dependent upon
the Company continuing to meet those conditions set by the
financier. It is in this environment that the Board has sought
to restructure the activities of the Company and ultimately seek
the merger with Xanadu. Without the proposed merger deal, there
is a significant risk that the Company would be unable to meet
the conditions imposed.

"Information Memorandum

"As has previously been announced to the market, Normans
prepared an information memorandum to assist it in its attempts
to find a partner to support the Company and ensure its long
term viability. Normans and its advisers have committed
considerable effort and resources to the process. This has
resulted in discussions with a number of international and
domestic parties about potential relationships.

"At the time of writing the directors believe the proposed
merger via a scheme of arrangement with Xanadu provides the most
realistic opportunity to retain and provide short to medium term
upside for current stakeholders in Normans Wines. This proposal
is the subject of an Implementation Agreement, which is
addressed further below.

"Proposed Merger With Xanadu

"On 20 April 2001 we announced to the Australian Stock Exchange
that we had entered into an Implementation Agreement to merge
with Xanadu Wines Ltd by way of Schemes of Arrangement for
Normans shareholders and noteholders. On 18 May 2001 we further
announced that both Normans and Xanadu were satisfied with their
due diligence inquiries relating to the proposed merger and
that, as a consequence, Xanadu has the exclusive right to work
with Normans to give effect to the proposal.

"The Implementation Agreement provides that the merger is
subject to several conditions, including completion of an
independent expert report that the Schemes are in the best
interests of Normans share and note holders; approval by both
companies' bankers; Xanadu entering into an unconditional
commitment to raise capital for the transaction; and shareholder
and noteholder approval to the transaction. The Schemes will
also be conditional upon ASIC, Court and ASX approvals. The
directors of both companies are confident that all conditions
can be met.

"The merger, when implemented, will create one of Australia's
major premium wine producers and exporters, with a presence
spread between two of the country's most renowned premium wine
producing regions, Margaret River in Western Australia and
McLaren Vale in South Australia.

"The rapidly expanding Xanadu, a producer of premium wines in
the Margaret River region, listed on the Australian Stock
Exchange in April 2001 and is part owned by the agribusiness
investment company, Yates Ltd, (previously Norgard Clohessy
Equity Ltd), and the development fund Growth Capital Australia
Ltd. As Norgard Clohessy Equity Ltd, Yates Ltd, has enjoyed a
remarkable growth record recognised in BRW's Fast 100 survey of
Australia's fastest growing companies.

"The merger agreement is in line with Normans Wines'
transitional phase, moving from a reliance on the sale of bulk
and cask wine to the premium end of the market, a transition
which complements the marketing and distribution synergies to be
achieved with the merger with Xanadu Wines. The merger will
provide economies of scale that make production and marketing
cost effective, assisting in our expansion plans.

"Xanadu and Normans share the same export agent in the UK,
Private Liquor Brands, and both companies are in strong growth
mode in export sales. Having a presence in two of Australia's
most renowned wine growing regions, Margaret River and McLaren
Vale, is also a significant benefit from production and
marketing aspects.

"The transaction, after all conditions have been satisfied, will
result in Normans' share and note holders exchanging their
securities in Normans for securities in Xanadu, and a capital
raising in Xanadu. The amount of capital required will be
determined in conjunction with financial due diligence, and will
be between $20 million and $30 million. Xanadu has mandated
Hartley Poynton to raise the required capital.

"The merger agreement follows a strategic review by our
company's directors and senior management and an Information
Memorandum which sought to restructure the business in order to
ensure financial stability.

"The capital raising in conjunction with the merger will be used
to reduce debt and to support marketing and sales activities for
key brands in local and international markets.

"We are excited by the opportunities presented through our
partnership with Xanadu Wines, and we are looking forward to a
period of consolidated growth and profitability as a larger and
more efficient producer and marketer of premium wines to
Australian and International markets.

"Action Required Of Shareholders & Noteholders

"In order to give effect to the proposal, Normans will need to
convene meetings of its shareholders and convertible
noteholders. An initial Supreme Court approval will be required
in order to convene these meetings.

"For the purpose of assisting shareholders and noteholders to
make a decision on the proposed merger, we will be retaining an
independent expert, chartered accounting firm Ernst & Young, to
provide a report addressing whether or not the merger is in the
best interests of each of the shareholders and noteholders.

"A comprehensive scheme booklet explaining the terms of the
merger, and the report from the independent expert, Ernst &
Young, will be provided to the shareholders and noteholders
prior to the meetings.

"At present you do not need to take any steps in relation to the
proposed merger. Any action required of you will be explained in
the scheme booklet."


ONE.TEL LIMITED: Appoints Admin'r; Pulls Rights Issue
-----------------------------------------------------
The Board of One.Tel Limited (One.Tel) announced yesterday the
appointment of Administrators to assist the company and address
its immediate cash position.

Steve Sherman and Peter Walker of Ferrier Hodgson have been
appointed Administrators of One.Tel.

One.Tel's overseas subsidiaries are subject to different laws
and will be dealt with on a case by case basis.

One.Tel's auditors, Ernst & Young, informed the Board that due
diligence investigations had revealed a capital raising of $132
million would be insufficient to keep the company solvent. The
renounceable Rights Issue to raise $132 million can therefore
not proceed.

The Board heard that a capital raising sufficient to meet the
funding requirements was not available. As a result, the Board
resolved to appoint Administrators and notify the Australian
Stock Exchange of a suspension of trading prior to the market
opening this morning.

The One.Tel board made this appointment after receiving advice
from management and its auditors on One.Tel's financial position
including its:

* Immediate cash requirements; and

* Cash requirements for ongoing operations.

The Board believed the appointment of the Administrators is in
the best interests of One.Tel and all its customers, staff,
creditors and shareholders.

Sherman said while a review of One.Tel's operations was underway
it would be business as usual for staff and customers

"We will review One.Tel's operations and hold discussions with
its major creditors to identify the best means of maintaining
value for the benefit of its stakeholders. In the interim
One.Tel will continue to trade as a going concern."

An information line will be established as soon as possible to
update customers, staff and shareholders of developments, said
Company Secretary A Parker.


ONE.TEL LIMITED: Insolvent; Won't Proceed With Rights Issue
-----------------------------------------------------------
Publishing & Broadcasting Limited (PBL) and News Limited (News)
reported the Directors of One.Tel Limited have advised the
company is insolvent.

This follows due diligence investigations which led the two
independent and two management directors of One.Tel to resolve
that the $132 million rights issue would be insufficient to
assure the solvency of the company. The PBL and News directors
abstained from the vote.

The One.Tel directors also resolved to appoint Steve Sherman and
Peter Walker of Ferrier Hodgson as Administrators.

The Chairman of PBL, James Packer, and the Chairman of News
Limited, Lachlan Murdoch says: "Like all shareholders we are
angry."

"We have been profoundly misled as to the true financial
position of the company.

"We intend to explore all remedies available to us.

"We welcome the Administrators' assurance that One.Tel would
continue to trade as a going concern and that they would seek to
identify the best ways of maintaining One.Tel's value for the
benefit of all shareholders and creditors."

Peter Yates, CEO of PBL and Peter Macourt, Deputy CEO of News
Limited, of One.Tel, say the due diligence investigation
revealed that the financial position of the company was not as
reported to the Board on May 17, nor at earlier Board meetings
as they understood it

"The Board was advised on May 17 that the proposed $132 million
rights issue was prudent but not essential. However ten days
later, due diligence by the company's auditors revealed that the
$132 million rights issue would still be significantly
insufficient to assure the company's solvency," they said.


ONE.TEL LIMITED: Securities Suspended
-------------------------------------
The securities of One.Tel Limited have been suspended from
quotation immediately at the request of the Company following
the appointment of Administrators.

Security Code: ONE


PASMINCO LIMITED: Posts Response To Media Articles
--------------------------------------------------
In response to an enquiry from the Australian Stock Exchange,
the directors of Pasminco Limited confirm there are no matters
that require disclosure. It is the long-standing policy of the
company not to comment on speculation.

Media reports of intended changes in the composition of the
Board reflect statements made by the Chairman at last years'
Annual General Meeting of shareholders, when it was indicated
that some directors will retire this year and that action would
be initiated to secure suitable replacement directors.
Appropriate announcements will be made when changes occur.

The intention of the company to undertake a wide ranging
strategic review of all of its assets was announced on 15
December 2000 as part of a Business Improvement Program. The
review was also referenced in the announcement of Pasminco's
half-year results on 28 February this year.

No decisions have been taken on the future of individual assets
and the strategic review continues. The interest of third
parties in the possible purchase of our Broken Hill assets has
been announced to the market.

As previously noted, Tony Barnes was appointed Executive General
Manager, Finance & Services on 5 April 2001. There are no plans
to make further changes at the executive leadership level, says
Group Manager-Investor Relations, Trevor Shard.


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


COSMOS COUNTRY: Hearing of Winding Up Petition Set
--------------------------------------------------
The petition to wind up Cosmos Country Development Limited will
be heard before the High Court of Hong Kong at 9:30 am on 6 June
2001. The petition was filed with the court on the 2 April 2001
by Kincheng Banking Corporation, whose principal place of
business is situated at No. 55 Des Voeux Road Central, Hong
Kong.


EVER FIRST: Winding Up Petition Slated For Hearing
--------------------------------------------------
The petition to wind up Ever First (Asia) Limited is scheduled
for hearing before the High Court of Hong Kong on June 27, 2001
at 9:30 am. The petition was filed with the court on May 4, 2001
by Po Sang Bank Limited, whose registered office is situated at
No. 71 Des Voeux Road Central, Hong Kong.


HONG KONG CONSTRUCTION: Debt Standstill Goal For Talks
------------------------------------------------------
Hong Kong Construction (Holdings) (HKSE:0190) announced Monday
that the company is currently engaged in negotiations with
domestic creditors banks and floating rate noteholders to
formalize an agreement on a debt standstill, Hong Kong IMail
reported Tuesday. When realized, this deal will give the company
until January next year to negotiate for a financial
restructuring plan, outlining the payment terms and interest
rates for loans.

The company is gearing up to shift focus back to its core
construction operations.

The company and its affiliates hold a total debt of $1.74
billion, $37 million of which is owed to creditor banks and
floating rate noteholders, respectively, IMail said. The
floating rate notes, which matured in December 2000, have not
been repaid.


HONG KONG CONSTRUCTION: New Non-Exec Director Appointed
-------------------------------------------------------
The Board of Directors of Hong Kong Construction (Holdings)
Limited announces the appointment of Dr. Li Zhong Yuan as an
independent non-executive director of the company with effect
from 4 May 2001.

Dr. Li received his PhD in Mathematics from the University of
Michigan at Ann Arbor, the USA. He once worked as an instructor
in Mathematics at the Massachusetts Institute of Technology, the
USA where he was consecutively awarded research grants from the
National Science Foundation.

He has extensive working experience in a number of major
international investment banks, including Bankers Trust, Salomon
Brothers and IBJ Asia Limited and has extensive experience in
capital raising and risk management. Since late 1996, he has
been in charge of building up capital markets and derivative
businesses in multi-asset classes in Northern Asia and was a
director of Rabobank International before setting up a financial
and technology investment firm.

Dr. Li is also the managing director of Greater China Sci-Tech
Holdings Limited, a company listed on the Hong Kong Stock
Exchange.


HONG KONG CONSTRUCTION: Reports Net Loss Of HK$1.153-B
-------------------------------------------------------
Hong Kong Construction (Holdings) Limited sustained in the year
ended 31 December, 2000 a consolidated net loss HK$1.153
billion, dropping 5 percent from HK$1.213 billion booked on the
preceding year. This group loss was incurred on revenues of
HK$1.893 billion.

The company's operating loss registered a decline of 6.64
percent to HK$313.7 million from HK$336 million booked in the
preceding year.

Cost of sales stood at HK$2.15 billion, dropping 31.16 percent
from the preceding year's HK$3.123 billion. Distribution costs
and administrative expenses climbed to HK$7 million and HK$107
million respectively. Other operating expenses dropped 64.59
percent to HK$88.7 million from HK$150.5 million year-on-year.

Share loss in 2000 went down to 227.0 cents from 239.6 cents in
1999.

The calculation of basic loss per share is based on net loss for
the year attributable to ordinary shareholders of Hk$1,152.8
million (1999: HK$1,213.1 million) and on 507.9 million (1999:
506.2 million) ordinary shares, being the weighted average
number of ordinary shares outstanding during the year.

Diluted Loss Per Share

There were no dilutive potential ordinary shares in existence
during the years 2000 and 1999.

The depreciation charge for the year was HK$3.0 million (1999:
HK$3.7 million).

For the year ended 31 December 2000, the Group incurred a loss
of HK$1,152.8 million and also had net current liabilities of
HK$1,811.6 million (1999: net current assets of HK$421.2
million). The shareholders' funds reduced from HK$3,298.9
million in 1999 to HK$2,094.9 million as of 31 December 2000.

On 1 December, 2000, the Company requested its bankers for an
informal standstill arrangement on the payment of all Hong Kong
bank loan principal and interest totaling approximately HK$1.9
billion, pending the approval by the Group's bankers of a formal
debt restructuring plan.

The Company has also requested a similar standstill arrangement
with the holders of the floating rate notes (the FRNs) with
outstanding balance of US$37 million issued by Hong Kong
Construction (Capital) Ltd, a wholly-owned subsidiary of the
Company. The FRNs were due for repayment on 11 December, 2000.

In accordance with the terms of the issue of the FRNs and the
bank facility agreements, the Group was in default of the notes
and all its bank borrowings.

In January 2001, the Company entered into a Facility Agreement
and Security Sharing Agreement with banks having security over
the receivables of certain of the Company's construction
projects under which the Secured Banks have agreed to make
further advances to the Company to enable it to pay the
subcontractors of its ongoing projects.

The Secured Banks were provided with a basket of additional
security comprising properties, shares and a debenture
incorporating fixed and floating charges over the assets and
undertaking of the Company. In accordance with a "Buyout,
Repayment and Release Deed" dated 4 May 2001 entered into with
the Secured Banks, the Company successfully negotiated the
release of security over projects' receivables and thereby
making available for the use of the Group future proceeds from
construction projects.

Furthermore, Yangpu Power (Hainan) Co Ltd, a 40 percent
associate of the Group has agreed with a third party for the
disposal of the Yangpu power plant for a consideration of HK$1
billion. Deposits totaling approximately HK$555 million have
been received subsequent to the year-end subject to the
completion of a formal sale and purchase agreement.

The Directors are confident that the sale of the power plant
will be completed resulting in substantial external funding to
the Group.

The Directors are currently in active negotiations with the
Group's bankers to formalize the standstill arrangement, to
restructure the repayment of the Group's indebtedness and to
agree a plan to gradually dispose of certain of its property
interests. The Directors believe that the ongoing support from
its bankers will be forthcoming and the disposal of the Yangpu
power plant will be finalized and the balance of the proceeds
received in full.

The Directors are confident that the funds generated from the
disposal of Yangpu power plant together with the other measures
to be taken under the debt restructuring plan will enable the
Group to continue in operational existence in the foreseeable
future.

Accordingly, the Directors are satisfied that it is appropriate
to prepare the accounts on a going concern basis,
notwithstanding the Group's financial position as at 31 December
2000. Should the Group be unable to continue in business as a
going concern, adjustments would have to be made to restate the
values of assets to their recoverable amounts, to provide for
any further liabilities which might arise and to reclassify non-
current assets and liabilities as current assets and
liabilities, respectively.

The effect of these adjustments have not been reflected in the
accounts.

Modified Auditors' Report

The auditors will issue their opinion on the fundamental
uncertainty relating to the going concern basis, an extract of
which is reproduced below:

"In forming our opinion we have considered the adequacy of the
disclosures made in the accounts concerning the continued
support of the Group's bankers and the ability of the Group to
obtain sufficient external funding. The accounts have been
prepared on a going concern basis, the validity of which depends
upon the ongoing support of the Group's bankers and the
successful outcome of the Group's restructuring plan. The
accounts do not include any adjustments that would result from a
failure to obtain such support and to implement the
restructuring plan. Details of the circumstances relating to
this fundamental uncertainty are described in the accounts. We
consider that the fundamental uncertainty has been adequately
accounted for and disclosed in the accounts and our opinion is
not qualified in this respect."

Dividend

No interim dividend has been paid during the year (1999: $Nil).
The directors do not recommend the payment of a final dividend
(1999: $Nil) in respect of the year ended 31 December 2000.

Group Review And Prospects

Results

The Group reported a consolidated net loss attributable to
shareholders of Hk$1.152 billion for the year ended 31 December
2000 mainly due to provisions made for a number of assets in
China and possible losses that may be incurred in construction
projects. This compares with a loss of Hk$1.213 billion for the
previous year. The Directors are not recommending any payment of
dividends.

The Group's construction business suffered a setback due to
liquidity problems. The Group has since 1998 embarked on a
business restructuring to focus on its core construction
business and the disposal of non-core assets, one of which is a
large investment in the Yangpu power plant in Hainan province,
the sale negotiation of which has been protracted. During the
later part of last year, a number of the Group's construction
projects also experienced delay due to non-payment to sub-
contractors resulting in possible losses. The Directors
considered it prudent and have made adequate provisions in the
accounts to cover for all possible losses.

As a result of its liquidity problems, the Group has appointed a
financial adviser to begin financial restructuring as the best
possible way to protect shareholder value.

On 29 November 2000, KPMG Financial Advisory Services was
appointed to review the Group's financial and trading position
and assist in negotiations for a standstill arrangement with its
banks in Hong Kong and note-holding creditors. The Group at
present has an aggregate indebtedness of approximately HK$1.74
billion to its bank creditors in Hong Kong.

It also has the FRNs amounting to US$37 million due for
repayment on 11 December 2000 but have not been repaid. The
Group is in discussions with both bank creditors in Hong Kong
and FRN holders on a new repayment schedule of debts owing to
each of them.

Construction

The Group had in hand contracts valued at HK$9.0 billion at the
end of April 2001. They included two government contracts for
the construction of five schools in the territory, one
government joint venture contract for Penny's Bay reclamation
stage I, three West Rail projects, the widening of Tolo Highway,
improvement works at Tuen Mun Wong Chu Road, design and
construction of Shatin Government Offices, Polytechnic
University phase VI development, residential development at 41C
Stubbs Road, construction of Science Park Phase 1A at Pak Shek
Kok, the Qingzhou Min River Bridge in Fuzhou, Shanghai Expo
Center, Shanghai Outer Ring Tunnel project, and a Chinese
government joint venture contract for main construction of the
National Grand Theatre in Beijing.

The Directors are confident all the projects will be completed
despite the Group's liquidity problems. Provisions have been
made for those where losses may be incurred due to delays.

Property

The Group has interests in first class commercial and
residential developments in Shenzhen, Guangzhou, Haikou, and
Beijing. Though market conditions improved in the second half of
last year, sales and rental income were still less than expected
during the year. The Group remains optimistic that China's
eventual admission to WTO will stimulate the lackluster property
markets.

In view of the uncertain prospects for new property developments
in southern China, the Group made provisions for the diminution
in value of properties in China following declining prices in
the respective local markets.

Liquidity And Financial Resources

The Group's borrowings at the balance sheet date comprised Hong
Kong and PRC bank loans of HK$2.25 billion and the FRNs of US$37
million. As the Group and the Company were in default of all
these borrowings at the balance sheet date, these amounts became
due immediately and were classified as current liabilities.

All these borrowings are interest bearing with interest rates
fixed at market rates plus margin at various intervals of time
from one month to one year after the previous fixing. The
majority of the borrowings are denominated in Hong Kong dollars.
As of the balance sheet date the foreign currency borrowings
included US$ borrowings of 13.0 percent, RMB borrowings of 9.0
percent and Japanese Yen borrowings of 4.3 percent approximately
of the total borrowings. The Group had pledged deposits of
HK$246.1 million equivalent and cash and cash equivalents of
HK$69.8 million at the balance sheet date. The Group has not
used financial instruments for currency hedging purposes.

Details Of Charges On Group Assets

As at the balance sheet date, the Group had the following assets
charged against bank borrowings:

          Value at 31 Dec 2000    Contract Sum
             HK$ million      HK$ million

Cash deposits 175.0             -
Office floors in Hong Kong 52.0  -
Office floors in Shenzhen 234.0  -
Receivables of construction contracts in Hong Kong
                         -       6,611.0

Total value        461.0  6,611.0

Secured bank loans 552.3  538.9 #

# In addition to the receivables of construction contracts in
Hong Kong, cash deposits of HK$53.9 million were pledged as
securities.

Gearing Ratio

The Borrowings to Equity Ratio of the Group as of 31 December
2000 amounted to 106.2 percent (1999: 70.6 percent), being the
ratio of "total bank borrowings and the FRNs less cash and cash
equivalents and pledged deposits" divided by "shareholders'
equity".

Employees

At the end of 2000, there were a total of approximately 441
employees employed by the Group. The employees are remunerated
according to the nature of jobs, their and the Group's
performance, and market conditions. Some of the employees are
entitled to year-end bonus and participation in the share option
scheme of the Group.

Outlook

Since last November, the Group has concentrated its efforts on
implementing a financial restructuring plan to resolve liquidity
problems. On 4 May 2001 the Company has signed a "Buy-out,
Repayment and Release Deed" with a group of banks whose lending
to the Company were secured by the Company's construction
contracts.

The Release Deed enabled the Company to have direct access to
progress monies received from all construction contracts. The
Group is currently negotiating with its banks in Hong Kong and
the FRN holders for a formal standstill agreement to be signed.

The formal standstill, if successfully agreed, will allow a
period of time (tentatively up to 15 January 2002) for the
Company to negotiate and agree with the participating banks and
FRN holders on a financial restructure plan. The plan will set
out terms of repayment and interest rates for the loans under
restructure.

The Group will then be able to refocus its efforts and resources
back to its core business of construction. With its expertise
and experience in the construction business, the Group is
hopeful to regain its reputation in the construction industry.

Purchase, Sale Or Redemption Of Listed Securities

Neither the Company nor any of its subsidiaries has purchased,
sold or redeemed any of its listed securities during the
financial year.

Year 2000 Compliance

The Company has a smooth transition to Year 2000 and has not
experienced any Year 2000 problem.

Code of Best Practice

The Company has complied throughout the year with the Code of
Best Practice as set out by The Stock Exchange of Hong Kong Ltd
in Appendix 14 to the Listing Rules except that the Company has
only one independent non-executive director following Mr David
Yung's resignation on 3 October 2000. On 4 May 2001, Dr Li Zhong
Yuan was appointed as another independent non-executive
director.

Audit Committee

In May 1999, the Directors established an audit committee with
written terms of reference in accordance with the requirements
of the Listing Rules. Since then, the committee has held
meetings twice a year to review the half-year and annual
financial statements of the Company prior to their submission to
the board as well as to discuss the internal control and other
issues of the Company. The audit committee has reviewed the
Company's annual results for the year of 2000.


HONG KONG CONSTRUCTION: Posts Notice Re AGM
-------------------------------------------
NOTICE IS HEREBY GIVEN that the twenty-eighth annual general
meeting of the Hong Kong Construction (Holdings) Limited will be
held at Private Rooms III-IV, Regent Hotel (to be renamed as
"Hotel Inter-Continental Hong Kong"), Salisbury Road, Kowloon,
Hong Kong on Thursday, 28th June, 2001 at 10:30 a.m. for the
following purposes:

1. To receive and adopt the audited financial statements and the
reports of the directors and auditors for the year ended 31
December 2000.

2. To re-elect the retiring directors.

3. To authorize the board of directors to fix the remuneration
of the directors.

4. To re-appoint KPMG as auditors of the Company and to
authorize the directors to fix their remuneration.

5. As special business, to consider and, if thought fit, to pass
the following resolutions:

(A) As Ordinary Resolution No. 1

"THAT:

(a) subject to paragraph (c) of this resolution, the exercise by
the directors during the Relevant Period (as hereinafter
defined) of all the powers of the Company to allot, issue and
deal with additional shares in the capital of the Company and to
make or grant offers, agreements and options which would or
might require the exercise of such powers be and is hereby
generally and unconditionally approved;

(b) the approval in paragraph (a) of this resolution shall
authorize the directors of the Company to make or grant offers,
agreements and options during the Relevant Period which would or
might require the exercise of such powers after the end of the
Relevant Period;

(c) the aggregate nominal amount of share capital allotted or
agreed conditionally or unconditionally to be allotted (whether
pursuant to an option or otherwise) by the directors of the
Company pursuant to the approval in paragraph (a) above,
otherwise than pursuant to (i) a Rights Issue (as hereinafter
defined); (ii) any option scheme or similar arrangement for the
time being adopted for the grant or issue to officers and/or
employees of the Company and/or any of its subsidiaries of
shares or rights to acquire shares in the share capital of the
Company; or (iii) any scrip dividend scheme or similar
arrangement providing for the allotment of shares in lieu of the
whole or part of a dividend on shares of the Company in
accordance with the Memorandum and Articles of Association of
the Company, shall not exceed 20 per cent of the aggregate
nominal amount of the share capital of the Company in issue as
at the date of passing this resolution and the said approval
shall be limited accordingly; and

(d) for the purpose of this resolution:

"Relevant Period" means the period from the passing of this
resolution until whichever is the earlier of:

(i) the conclusion of the next annual general meeting of the
Company;

(ii) the expiration of the period within which the next annual
general meeting of the Company is required by any applicable law
or the Articles of Association of the Company to be held; and

(iii) the revocation or variation of this resolution by an
ordinary resolution of the shareholders of the Company in
general meeting.

"Rights Issue" means an offer of shares open for a period fixed
by the directors of the Company to holders of shares of the
Company on the register on a fixed record date in proportion to
their then holdings of such shares (subject to such exclusions
or other arrangements as the directors of the Company may deem
necessary or expedient in relation to fractional entitlements or
having regard to any restrictions or obligations under the laws
of or the requirements of any recognized regulatory body or any
stock exchange in any territory outside Hong Kong)."

(B) As Ordinary Resolution No. 2

"THAT:

(a) subject to paragraph (b) of this resolution, the exercise by
the directors of the Company during the Relevant Period (as
hereinafter defined) of all the powers of the Company to
repurchase shares of HK$1.00 each in the share capital of the
Company on The Stock Exchange of Hong Kong Limited or on any
other stock exchange on which the shares of the Company may be
listed and recognized by the Securities and Futures Commission
of Hong Kong and the Stock Exchange for this purpose, subject to
and in accordance with all applicable laws and the requirements
of the Rules Governing the Listing of Securities on the Stock
Exchange or any other stock exchange as amended from time to
time, be and is hereby generally and unconditionally approved;

(b) the aggregate nominal amount of shares to be purchased by
the Company pursuant to the approval in paragraph (a) of this
resolution shall not exceed 10 per cent of the aggregate nominal
amount of share capital of the Company in issue at the date of
passing this resolution and the said approval shall be limited
accordingly; and

(c) for the purpose of this resolution:

"Relevant Period" means the period from the passing of this
resolution until whichever is the earlier of:

(i) the conclusion of the next annual general meeting of the
Company;

(ii) the expiration of the period within which the next annual
general meeting of the Company is required by any applicable law
or the Articles of Association of the Company to be held; and

(iii) the date upon which the authority set out in this
resolution is revoked or varied by way of ordinary resolution of
the shareholders of the Company in general meeting."

(C) As Ordinary Resolution No. 3

"THAT, subject to the passing of Ordinary Resolution Nos. 1 and
2 set out in the notice convening this meeting, the general
mandate granted to the directors of the Company to allot, issue
and deal with additional shares pursuant to Resolution No. 1 set
out in the notice convening this meeting be and is hereby
extended by the addition thereto of an amount representing the
aggregate nominal amount of shares in the capital of the Company
repurchased by the Company under the authority granted pursuant
to Ordinary Resolution No. 2 set out in the notice convening
this meeting, provided that such amount of shares shall not
exceed 10 per cent of the aggregate nominal amount of the share
capital of the Company in issue at the date of passing this
Resolution."

Book close dates for annual general meeting: 21 June 2001 to 28
June 2001 (both days inclusive)
Latest time to lodge transfers: 4:00 p.m. on 20 June 2001


SINO MARK: Faces Winding Up Petition
------------------------------------
The petition to wind up Sino Mark Trading Limited will be heard
before the High Court of Hong Kong on May 30, 2001 at 9:30 am.
The petition was filed with the court on March 29, 2001 by Wu
Yin Fung and Kong Kwai Mui both care of Flat 2502, Block A,
Belleve Court, No. 22 Sun Sing Street, Sai Wan Ho, Hong Kong.


SIU FUNG: Placed In Third Stage Of Delisting
--------------------------------------------
Mid-liquidation Siu-Fung Ceramics Holdings Limited is proceeding
to the third stage of the delisting procedures as stipulated
under Practice Note 17 of the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited (the
"Exchange Listing Rules").

The Stock Exchange of Hong Kong stated that, effective 28 May
2001, the shares of the Company ve been put into the third stage
of the Delisting Procedures.

Pursuant to the Delisting Procedures, the Company is given a
final six months for the submission of a valid resumption
proposal. If the Company does not put forward a valid resumption
proposal by 27 November 2001, the Exchange intends to cancel the
listing of the shares of the Company.

Dealings in the shares of the Company on the Exchange have been
suspended since 10 May 2000. Since its suspension, the Company
has not been able to implement a valid resumption proposal.

A valid resumption proposal means a proposal that, if it were
implemented, would enable an issuer to demonstrate that it
complies with paragraph 38 of the Listing Agreement entered into
between the Company and the Exchange ("Listing Agreement").

Paragraph 38 of the Listing Agreement requires an issuer to
carry out a sufficient level of operations or have tangible
assets of sufficient value and/or intangible assets for which a
sufficient potential value can be demonstrated to warrant the
continued listing of the listed company's securities on the
Exchange.

As the Company is being wound up and its assets apportioned by  
Gabriel C. K. Tam and Alan C. W. Tang as the joint & several
liquidators of the Company, there is no significant activity by
the Company.

The Exchange will make a further announcement of any major
developments in due course.


WORLD TRAVEL: Winding Up Petition To Be Heard
---------------------------------------------
The petition to wind up World Travel bags (Hong Kong) Limited is
scheduled to be heard before the High Court of Hong Kong at 9:30
am on the June 13, 2001. The petition was filed with the court
on April 18, 2001 by The Hongkong Chinese Bank, Limited, whose
registered office is situated at Lippo Centre, 89 Queensway,
Hong Kong.


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


BANK DAI-ICHI: IBRA Sells 15% Stake
-----------------------------------
The Indonesian Bank Restructuring Agency (IBRA) has sold its 15
percent share ownership of frozen bank BDNI-BBO in PT Bank Dai-
Ichi Kangyo Indonesia (IDKB). 14 percent of IBRA's shares were
purchased by The Dai-Ichi Kangyo Bank Limited (DKB) of Japan,
and the remaining 1 percent by PT Itochu Management Service
Indonesia (IMS).

IBRA's total revenue from the sale of its 300 shares in IDKB is
approximately Rp12 billion, or 1.2 times book value for
financial year 2000.

PT Bank Dai-Ichi Kangyo Indonesia (IDKB) was established on 8
February 1991. It is a joint-venture bank between the Dai-Ichi
Kangyo Bank Limited, Japan (DKB) which owned 85 percent shares
and 15 percent shares of PT BDNI Tbk (Frozen Bank).

Dai-Ichi Kangyo Bank (DKB) of Japan, on 22 December 1999 signed
an agreement to merge with Fuji Bank and The International Bank
of Japan (IBJ) to form a new holding company under the name of
Mizhuo Holdings, Inc.

As part of the action plan, the merger of the three banks will
combine all their branch offices, located in Japan and other
countries worldwide.

PT Itochu Management Service Indonesia (IMS) was established in
1994. It was a joint venture company which ran a professional  
investment consultant and training service.

IBRA is an Agency of the government of Indonesia established in
1998 as the primary agency to oversee the rehabilitation of
financial sector. IBRA has the authority to take over and
control the ailing banks and to sell all the assets being
pledged to IBRA.


INTI INDORAYON: Moody's Affirms, Withdraws Ca Rating
----------------------------------------------------
Moody's Investors Service on Monday affirmed and withdrew the Ca
rating on Indorayon's US$150 million Senior Notes and US$110M
Guaranteed Notes.

Moody's says the company's operation has been seriously affected
by the closure of its pulp mill at Porsea, North Sumatra, and it
has since 1999 suspended all debt repayment.

The rating reflects the low expected recovery rate and the
apparent uncertainty in resolving creditors' claims under
Indonesian law. At the same time, Moody's withdraws the rating
following the notes' maturity in 2000 and 2001 respectively.

Although the notes remain unpaid, Moody's regards it as unlikely
that a debt restructuring agreement will be reached in the near
future, given the lack of progress on the resumption of the
mill's production.

In Moody's opinion, it remains uncertain as to when the mill
will be re-opened in view of the economic and social conditions
in Indonesia.

PT Inti Indorayon Utama, headquartered in Jakarta, Indonesia, is
a manufacturer of pulp, dissolving pulp and rayon fiber.


WICAKSANA OVERSEAS: Selling Stake In Jakarana Tama
--------------------------------------------------
PT Wicaksana Overseas International intends to dispose of all
its ownership in PT Jakarana Tama, IndoExchange reported
yesterday. The entire holding of 162,000 shares worth Rp16.20
billion will be sold to Batavia Investment Limited.

This shares divestment plan is part of the company's efforts to
focus on its core distribution operations, and for cash
consideration to pay off debts owed to its creditors.


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


HASEKO CORP: Posts Pretax Profit Of Y14.78-B
--------------------------------------------
Haseko Corporation booked, for the year ended March 31, a
consolidated pretax profit of Y14.78 billion. Haseko had
suffered a pretax loss of Y2.05 billion in the preceding year,
Japan Times Online reported yesterday. This pretax profit is the
housing contractor's first in three years, attributable to the
surge in demand for condominiums.

The company's net profit climbed 83 percent to Y95.31 billion,
as operating profit burgeoned 47.7 percent to Y26.14 billion on
revenues of Y458.92 billion, or a jump by 22.3 percent. Net
profit per share stood at Y91.69

Pretax profit on a parent-only basis went up threefold to Y18.04
billion, with operating profit rising 93.8 percent to Y20.23
billion on sales revenues totaling Y359.18 billion.

Haseko did however, book a net loss of Y21.28 billion, as
opposed to a net profit of Y3.39 billion in fiscal 1999,
incurred largely due to valuation losses from real estate and
equities, the report said.

Haseko predicts its group earnings for the year will likely drop
due to lower demand in the market, the report said.


MITSUBISHI CHEMICAL: Moody's Confirms Baa3 Rating
-------------------------------------------------
Moody's Investors Service has confirmed Mitsubishi Chemical
Inc's (Mitsubishi Chemical) Baa3 rating following the
announcement that its 100 percent subsidiary Mitsubishi-Tokyo
Pharmaceutical, Inc. and Welfide Corporation had concluded an
agreement to merge, and that the new company will start
operations in October 2001.

The rating confirmation reflects Moody's view that the merger
will not have a significant impact on the rating fundamentals of
Mitsubishi Chemical over the medium term. The outlook remains
stable.

The new company, Mitsubishi Welpharma Corporation (Mitsubishi
Welpharma), will be a consolidated subsidiary of Mitsubishi
Chemical with 40 percent of its shareholding. Mitsubishi
Welpharma will be ranked as the fifth largest pharmaceutical
company in Japan.

Moody's considers that R&D and marketing activities will be
empowered by the merger, but will not automatically lead to an
improvement in the new company's competitiveness in the
pharmaceutical market.

More and more large-scale investment in R&D and marketing is
required in the pharmaceutical industry each year in the
pharmaceutical industry - an industry which is witnessing
accelerating global consolidation.

Therefore, Moody's considers that it will be difficult for the
new company to readily enjoy the merger benefits. Moody's will
monitor how Mitsubishi Chemical will achieve real synergies from
the merged entity in the group's life science business strategy.

Moody's will also monitor whether there will be any change in
Mitsubishi Chemical's management influence on the new company,
particularly as its shareholding will be low at about 40
percent.

Mitsubishi Chemical Inc., headquartered in Tokyo, is one of the
major chemical companies in Japan. The company's consolidated
sales for the fiscal year ended March 2001 were Y1.747 trillion
(approximately US$14.6 billion).


MITSUBISHI MOTORS: Devises ERP To Cut Up To 1,200 Jobs
------------------------------------------------------
Mitsubishi Motors Corporation is prepared to offer an early
retirement plan (ERP) to workers 40 years or older with at least
ten years of employment, so as to shed 1,200 employees from its
24,700-strong workforce, Japan Times Online reported yesterday.

The job cut falls under the company's attempts to secure a
turnaround in its business performance and operations. The
company has made provisions of Y10 billion in the current year
to facilitate the proceeding of ERP.

In the fiscal year 2000, Mitsubishi Motors booked a group net
loss of Y278.14 billion, remaining in the red for the second
straight year, largely due to poor sales performance and
extraordinary losses resulting from a recall, the report said.


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


HYNIX SEMICON: Completes Spinoff Of Non-Core Ops
------------------------------------------------
Hynix Semiconductor has completed the release of its non-core
operations, all in the telecommunications-related business,
making the company solely a chipmaker, The Asian Wall Street
Journal reported Tuesday.

This spinoff of non-chipmaking operations is under the company's
corporate restructuring program, the newspaper said.

Hynix also announced Tuesday a new company would be set up next
month as a separate company for all operations outside Hynix's
semiconductor business. Since Hynix still holds majority stakes
in the units, it plans to dispose of the interest by the end of
this year, retaining only 20 percent of its entire current
stake.


HYNIX SEMICON: Newbridge Eyes Acquisition Of US$200-M GDRs
----------------------------------------------------------
According to a Dow Jones Newswires source, American investment
company Newbridge Capital Limited is considering the purchase
the US$200 million Hynix Semiconductor's global depository
receipts (GDRs), The Asian Wall Street Journal reported Tuesday.

In addition, the source said Newbridge Capital is mulling over
the prospect of placing a share investment into Hynix, since the
government has moved to approve Hynix's separation from the
Hyundai Group, the Journal said.

But the source added, as quoted by Journal, "It is unclear
whether Newbridge Capital will link its purchase of $200 million
in GDRs to equity investment in Hynix."

"Some U.S. investment funds are interested in the high-risk and
high-return GDRs of Hynix, and Newbridge Capital is the most
eager candidate," the source was quoted as saying.


HYUNDAI MERCHANT: Seven Trips Scheduled in June
-----------------------------------------------
Hyundai Merchant Marine announced Tuesday that the company will
retain only seven trips to the Mt Kumgang resort in North Korea
in the first half of June. HMM is attempting to trim back its
participation in the joint venture tourism project before it
severs its ties completely, The Digital Chosun reported
yesterday.

In May, the cruise ship operator conducted only 13 trips to the
resort due to lower volume of visits.

The company now only operates two of its four cruise ships in
the tourism venture, the report said.


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


BRIDGECON HOLDINGS: Posts Notice Re AGM
---------------------------------------
The Eighth Annual General Meeting of Bridgecon Holdings Berhad
will be held at Tournament Room (East Wing), Kuala Lumpur Golf &
Country Club No 10, Jalan 1/70D, Off Jalan Bukit Kiara ,60000
Kuala Lumpur on Friday, 29 June 2001 at 11:00 a.m for the
following purposes:

Agenda

1. To receive and adopt the Audited Accounts of the Company for
the year ended 31 December 2000 and the Directors' and Auditors'
Report thereon.   
2. To re-elect the following Directors who retire in accordance
with the Company's Articles of Association and who, being
eligible, offer themselves for re-election:  

Under Article 109

Khalid Hj Sufat        
Hasbullah Muhammad Taib       
Adam Selamat Bin Musa       

3. To re-appoint Messrs Ernst & Young as Auditors and to
authorize the Directors to fix their remuneration.  
      
4. As Special Business:

To consider and, if thought fit pass the following Ordinary
Resolution:

"That, subject always to the Companies Act 1965, the Articles of
Association of the Company and the approvals of the relevant
governmental / regulatory authorities, the Directors be and are
hereby empowered pursuant to Section 132D of the Companies Act
1965, to issue shares in the Company from time to time and upon
such terms and conditions and for such purposes as the Directors
may deem fit provided that the aggregate number of shares issued
pursuant to this resolution does not exceed 10% of the issued
capital of the Company for the time being and that such
authority shall continue in force until the conclusion of the
next Annual General Meeting of the Company."   
    
5. To transact any other business of which due notice shall have
been given.


BRIDGECON HOLDINGS: Reports Proposals' Status  
---------------------------------------------
In previous financial year, the Bridgecon Holdings Berhad and
its subsidiary companies applied to the Corporate Debt
Restructuring Committee (`CDRC') of Bank Negara Malaysia to
assist in formulating a debt restructuring scheme (`Proposed
Debt Restructuring Scheme') to restructure the financial
position of the Company and the Group.

On 23 February 2001, the Company announced that the Board of
Directors is currently in the midst of formulating the Proposed
Debt Restructuring Scheme to regularise its financial condition.
Persuant to Practice Note no.4/2001 of Kuala Lumpur Stock
Exchange, the Company has six months from 23 February 2001 to
finalise a plan to regularise its financial condition.

On 22 March 2001, the Board of Directors of the Company entered
into a Memorandum of Understanding with shareholders of Project
33 Construction Sdn.Bhd. namely Chee Soo Meng, Wong Chiew Peng,
Chong Kok Wei and Chung Pak Teng, whereby the Company agreed to
invite Project 33 Construction Sdn.Bhd. to participate in the
Proposed Debt Restructuring Scheme to regularise the Company's
financial position.

The salient terms in the Memorandum of Understanding are as
follows:

- the shareholders of Project 33 Construction Sdn.bhd. will
inject into a new company to be formed, with assets to be
identified and agreed upon by both parties;

- both the Company and shareholders of Project 33 Construction
Sdn.Bhd. agreed that in the event the Proposal is implemented
with the assistance of the Special Administrators to be
appointed by Pengurusan Danaharta Nasional Berhad, each party
will render the necessary assistance to the Special
Administrators to cause the implementation of the Proposal.

The Memorandum of Understanding will automatically expire within
six months from the date of the Memorandum of Understanding
unless mutually extended by the parties.

On 6 April 2001, Siew Kah Toong and Tan Kim Leong JP of Messrs
BDO Binder were appointed as Special Administrators of Bridgecon
Holdings Berhad. Pursuant to Section 33 of the Pengurusan
Danaharta Nasional Berhad Act 1998, the Special Administrators
shall be entitled to exercise all the functions of the Board of
Directors of the Company.

On 24 May 2001, Siew Kah Toong and Tan Kim Leong JP of Messrs
BDO Binder were appointed as Special Administrators of two (2)
wholly owned subsidiaries of the Company, namely, Bridgecon
Engineering Sdn.Bhd. (`BESB') and Lean Seng Chan (Quarry)
Sdn.Bhd. (`LSCQ') by Pengurusan Danaharta Nasional Berhad under
Section 24 of the Pengurusan Danaharta Nasional Berhad Act 1998.
Pursuant to Section 33 of the Pengurusan Danaharta Nasional
Berhad Act 1998, the Special Administrators shall be entitled to
exercise all the functions of the Board of Directors of the
Company.

As the Special Administrators were only appointed over the
Company and two (2) of the subsidiaries namely BESB and LSC, the
rest of the subsidiary companies are still controlled by their
respective Board of Directors.

Seasonal Or Cyclical Factors

The business operations of the Group were not materially
affected by any seasonal or cyclical fluctuations.

Issuance & Repayment Of Debt & Equity Securities

There were no issuance and repayment of debt and equity
securities during the period under review.

Group Borrowingns

     Secured Unsecured Total
     RM'000 RM'000 RM'000
Short term borrowings  
-Denominated in RM       28,722    163,013  191,735
-Denominated in USD  -      13,380    13,380

     28,722    176,393  205,115
  
Long term borrowings  -              -            
-
    
       28,722    176,393   205,115
   

The Company and its subsidiaries have defaulted on all of the
above bank borrowings. Consequently, the bank borrowings become
repayable on demand and therefore the entire borrowings have
been reclassified as short term borrowings. The Group is
currently negotiating with the Lenders to restructure the bank
borrowings.

Contingent Liabilities

Unsecured contingencies:   
Corporate guarantees issued in respect of
banking credit facilities granted to subsidiary companies
RM134,850,000  
debts owing to major suppliers from subsidiary companies
RM3,244,000

Bank guarantees in favour of third parties RM10,209,000

Total RM148,303,000             
  

Material Litigation

In respect of the claim made against Bridgecon Holdings Berhad
("BHB") by Arab-Malaysian Merchant Bank Berhad ("AMMB") for
amount outstanding under facilities granted by AMMB of a total
sum of RM59,905,605.42, the legal proceedings has been
temporarily put on hold pending the finalization of the Proposed
Restructuring as mentioned in Note 9.

Another claim made against Bridgecon Engineering Sdn Bhd
("BESB") {a 100 percent wholly owned subsidiary of BHB} and BHB
by Arab Malaysian Bank Berhad (`AMB') for amount outstanding
under facilities granted by AMB of RM10,151,895.31, Judgement in
Default has been obtained against BESB and BHB on 10 March 1999.
The Company's solicitors have applied for the stay of execution
of the Judgment. The hearing will be held on 6 June 2001.

The third claim made against BESB and BHB by Public Bank Berhad
("PBB") for amount outstanding under facilities granted by PBB
of a total sum of RM4,340,254.90. The hearing of PBB's
application for summary judgment fixed on 8 March 2001 has been
adjourned to 5 September 2001 for mention pending the
implementation of the Proposed Debt Restructuring Scheme.

The fourth claim made against Lean Seng Chan (Quarry) Sdn Bhd
("LSCQ") {a 100 percent wholly owned subsidiary of BHB} and BHB
by HSBC Bank Malaysia Berhad ("HSBC") for amount outstanding
under facilities granted by HSBC totaling the sum of
RM3,372,180.33.  HBMB has filed in Summary Judgment Application
and the date for hearing of HSBC's has yet to be determined.

Pursuant to Section 41 of the Pengurusan Danaharta Nasional
Berhad Act 1998, on the appointment of the Special
Administrators in BHB, BESB and LSCQ, a moratorium shall take
effect and no proceedings or execution or other legal process
may be commenced or continued.

The fifth claim made against Andarin Sdn Bhd ("ASB") {a 100
percent wholly owned subsidiary of Bridgecon Development Sdn.
Bhd. ("BDSB"); while BDSB is 100 percent wholly owned subsidiary
of BHB} and BHB by HSBC Bank Malaysia Berhad ("HSBC") of a total
sum of RM15,411,630.72. The hearing of HSBC's application for
summary judgment fixed for hearing on 17 April 2001 has been
adjourned to 7 June 2001 for decision.

All the above legal cases are pending the finalization of the
Group's debt restructuring exercise and there is still an
unofficial Standstill Agreement between the Company and the
Lenders as was previously announced to the Exchange on 14 May
1999.

On 15 February 2001, the Company was served with a Winding Up
Petition by the solicitors of Ann Joo Trading Sdn Bhd ("the
Petitioner") as the Company has stood as a Guarantor pursuant to
the Corporate Guarantee dated 15 October 1999 in favor of the
Petitioner for alleged debt due to the Petitioner for goods
allegedly sold and delivered to Bridgecon Engineering Sdn Bhd
("BESB"), a wholly owned subsidiary of the Company.

Total Indebtedness claimed by the Petitioner was RM504,047.36
which will include interest charges to be accrued thereon:
        RM
Principal     450,469.11
Interest (18 percent) 53,578.25
Total                504,047.36

The alleged debt totaling the sum of RM504,047.36 as at 5
December 2000 is disputed on bona fide and substantial grounds
by BESB vide Kuala Lumpur Suit No D2-22-2356-2000 against the
Petitioner wherein BESB is claiming the sum of RM2,362,584.00
for late delivery of the goods which has attributed to the
imposition of Liquidated and Ascertained Damages ("LAD") and
furthermore, the said goods were not according to the
specifications, of merchantable quality and also not according
to the sample. The Petitioner, however, filed a Defense and a
Counterclaim in the said Suit wherein they claimed the sum of
RM504,047.36 against BESB.

On 23 March 2001, the Kuala Lumpur High Court has struck out the
petition with no order as to costs. The Court further struck out
the application by the Company to strike out the Petition and
stay further proceedings on the Petition with no order as to
costs on the application by the Company's solicitors. The Court
Order was filed by the Company's solicitors on 3 April 2001 and
was subsequently extracted from Court on 5 April 2001. For all
intents and purposes, the Petition is no longer in existence.

Save as disclosed above, there were no other pending material
litigation for the financial quarter under review.

Based on the unaudited financial results, the Group recorded a
turnover of RM3.5 million in the first quarter ended 31 March
2001 compared to RM7.4 million in the fourth quarter ended 31
December 2000. The engineering and construction sector are
contributing approximately 92 percent of the Group's turnover
and most of the projects are completing.

The Group registered a consolidated loss before tax of RM11.3
million for the first quarter compared to a consolidated loss
before tax of RM20.1 million in the fourth quarter ended 31
December 2000.

Based on the unaudited financial results for the period ended 31
March 2001, the Group recorded an accumulated turnover of RM3.5
million and registered a pre-tax loss of RM11.3 million. The
loss is mainly attributed to high cost of borrowing and lower
turnover.

In the opinion of the Directors, the prospects of the Group
shall to a large extent depend on the finalization of the
proposed debt restructuring scheme so as to regularize the
Group's financial condition pursuant to Practice Note No.4/2001.


CELCOM (MALAYSIA): Court May Impose Wind-Up, Source Says
--------------------------------------------------------
Leading mobile phone operator Celcom (Malaysia) Sdn Bhd, may
face court-imposed wind-up if the company fails to pay RM100.3
million, plus interest, to Celcom Timur (Sarawak) Sdn Bhd within
a three-week period, The Asian Wall Street Journal reported
Tuesday, citing the Dow Jones Newswires source. Celcom was
served an affidavit last May 10 demanding payment on the
outstanding debt and obligations.

The court may impose the winding up of the company under Section
218 of Malaysia's Companies Act, the report said.

Celcum Timur is a joint venture company of Celcom (Malaysia),
holding 60 percent stake, and Sarawak Electricity Supply
Corporation, which owns the remaining 40 percent stake.

The newspaper noted cash-strapped Celcom Timur, an operator of
fiber-optic cable in Sarawak, takes 95 percent of its revenues
from Celcom (Malaysia).


JUTAJAYA HOLDING: Board Aborts Workout Bids
-------------------------------------------
In addition to the announcement made on 20 December 2000,
Alliance Merchant Bank Berhad, on behalf of the Board of
Directors of Jutajaya Holding Berhad revealed the Board has
decided to abort the following Proposals:

(i) Proposed Debt Restructuring between Jutajaya and a
subsidiary company, namely Orbit Prestige Sdn Bhd, with its
secured and unsecured lenders amounting to RM72.59 million;

(ii) Proposed rights issue of up to RM38,729,443 nominal value
of ICULS at 100 percent of the nominal value of Jutajaya on the
basis of RM1.00 nominal value of ICULS for every one existing
Jutajaya Share held (Proposed Rights Issue of ICULS);

(iii) Proposed rights issue of up to 38,729,443 new ordinary
shares of RM1.00 each in Jutajaya (Rights Shares) together with
up to 38,729,443 free detachable Warrants at an issue price of
RM1.00 per share on the basis of one (1) Rights Share with one
free detachable Warrant attached thereto, for every one existing
Jutajaya Share held; or

Proposed rights issue of up to 38,729,443 Rights Shares at an
issue price of RM1.00 per share on the basis of one Rights
Share, for every one existing Jutajaya Share held; and

(iv) Listing and quotation of the ICULS and the new Jutajaya
Shares to be issued pursuant to the Proposals and upon
conversion of the ICULS pursuant to the Proposed Rights Issue of
ICULS, on the Second Board of the Kuala Lumpur Stock Exchange.

The company originated in 1955 as a family partnership in Pulau
Ketam, Selangor, dealing in fishing nets, boating equipment and
fishing gear. It served primarily the needs of the local
fisherfolk in the area and also several coastal towns within
Selangor until 1965 when the business was shifted to Klang.

After over 30 years of involvement in the marketing of fishing
nets and gear, the partners subsequently ventured into the
manufacture of fishing nets which led to the incorporation of
the Company. Jutajaya obtained its manufacturing license to
manufacture fishing nets in December 1985.
The Group's products have since extended to synthetic nettings,
ropes and twines. These products are mainly used in the fishing
industry, plantations, construction-related industries and
sporting activities.

In a rationalization exercise carried out in 1996, its net and
rope making operations were transferred to a subsidiary and the
Company transformed into an investment holding company.

The Group then diversified into property development via the
acquisition of a property development company within the same
year. To further branch into the construction sector, the Group
acquired Jutajaya Buildtech Sdn Bhd (formerly known as Kemayan
Construction Sdn Bhd).

In July 1999, the Company acquired 100 percent of Bidalan Teguh
Sdn Bhd, an investment holding company which owns a 70 percent
stake in Desiran Juta Sdn Bhd. Desiran has entered into a JVA
with Labuan Fisheries (M) Sdn Bhd to acquire the rights to
manage, upgrade, and rehabilitate a fisheries complex located in
Labuan for a period of 25 years commencing 8 December 1998. The
business of Desiran includes manufacturing and sale of ice
blocks, sale of diesel to trawlers, processing and packaging of
seafood products and fishing. In the same year, the Company
acquired 71 percent in Action Wear (M) Sdn Bhd, which is
involved in the manufacturing of sports apparel for the export
market.


MAN YAU: Court To Hear Application For Creditors Meeting
--------------------------------------------------------
The Board of Directors of Man Yau Holdings Berhad announces that
the application made by the Company and its two subsidiaries,
namely Man Yau Plastic Factory (Malaysia) Sdn Bhd and Wang
Corporation Sdn Bhd, to the Kuala Lumpur High Court for the
convening of the proposed meetings of creditors and/or
shareholders, is fixed for hearing on 12 June 2001.

This announcement is in relation to the company's proposed
rescue/restructuring scheme comprising the following:

* Proposed schemes of arrangement under section 176 of the
Companies Act, 1965, in relation to debt restructuring and share
exchange proposals;

* Proposed reverse takeover of Man Yau Holdings Berhad via
acquisitions of various companies;

* Proposed private placement;

* Proposed employee share option scheme.

Man Yau Holdings, incorporated as a private limited company in
Malaysia on 31 December 1992 and converted into a public limited
company on 11 February 1993, holds office at No. 42 & 43 Jln
Desa, Taman Desa Off Jalan Kelang Lama 58100 Kuala Lumpur with
tel  03-7844833 and fax 03-7834835.

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

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

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

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


RAHMAN HYDRAULIC: Posts Notice Re AGM
-------------------------------------
On behalf of the Special Administrators of Rahman Hydraulic Tin
Berhad (RHTB or the Company), the company announces that the
86th Annual General Meeting (AGM) of RHTB will be held at
Quality Hotel Shah Alam, Plaza Perangsang, Persiaran
Perbandaran, 40000 Shah Alam, Selangor Darul Ehsan on Friday, 15
June 2001 at 10:00 a.m.

The AGM is going to transact the following ordinary businesses:

Ordinary Business

1. To receive the Accounts for the year ended 31 December 1997
and the Reports of the Directors and Auditors thereon.

2. To receive the Accounts for the year ended 31 December 1998
and the Reports of the Directors and Auditors thereon.

3. To receive the Accounts for the year ended 31 December 1999
and the Reports of the Directors and Auditors thereon.

4. To receive the Accounts for the year ended 31 December 2000
and the Reports of the Directors and Auditors thereon.

5. To approve the payment of directors' fees of RM10,000 for the
financial year ending 31 December 2001.

6. To re-elect Gopalan A/L S. Vengadasalam who is retiring
pursuant to Article 109 of the Company's Articles of
Association.

7. To re-elect Ganesan A/L Sundaraj who is retiring pursuant to
Article 109 of the Company's Articles of Association.

8. To re-elect K. Ravathi A/P M. Karuppiah who is retiring
pursuant to Article 109 of the Company's Articles of
Association.

9. To re-appoint Messrs. BDO Binder as auditors of the Company
and to authorize the Directors to fix their remuneration.

Explanatory Notes To The Agenda

On 16 June 2000, Yeo Eng Seng, Adam Primus Varghese bin Abdullah
and Wong Lai Wah (Ms) of Messrs Ernst & Young were appointed as
Special Administrators ("SA") of the Company by Pengurusan
Danaharta Nasional Berhad ("Danaharta") pursuant to Section 24
of the Pengurusan Danaharta Nasional Berhad Act, 1998.

By virtue of the appointment, the SA assumes control of the
assets and affairs of the Company. The powers of the management
and Board of Directors are suspended and a twelve-month
moratorium has been placed upon the Company with effect from the
date of appointment of the SA.

The names of the directors of the Company in office as at the
date of this notice are:

Ganesan A/L Sundaraj  (Appointed on 26 Feb. 2001)
Gopalan A/L S. Vengadasalam  (Appointed on 26 Feb. 2001)
K. Ravathi A/P M. Karuppiah  (Appointed on 26 Feb.2001)

* Tan Sri Dato' Wan Sidek Bin Hj. Wan
   Abdul Rahman  (Appointed on 3 June1998)
* Tuan Haji Abdul Malek Bin Hormat  (Appointed on 15 June
1998)
* Chong Kee Ling, JP  (Appointed on 24 August 1999)
* Dato' Syed Hamzah Bin Syed Abu Bakar  (Appointed on 24 Nov.
1999)
* Lim Siang Kim  (Appointed on 31 Jan. 2000)

Ganesan A/L Sundaraj, Gopalan A/L S. Vengadasalam and K. Ravathi
A/P M. Karuppiah were appointed by the Special Administrators
and in accordance with Article 109 of the Company's Articles of
Association, they retire from the Board at the forthcoming
Annual General Meeting and, being eligible, offer themselves for
re-election.

No Annual General Meeting was held since 31 December 1998, being
the date on which extension of time was granted by the Registrar
of Companies to convene the Annual General Meeting in 1998.

In view of this, by virtue of Article 109 of the Company's
Articles of Association, the directors as marked with an
asterisk are de facto directors of the Company being persons
occupying the position of directors without re-election by
members of the Company.

Pursuant to Section 33 of Pengurusan Danaharta Nasional Berhad
Act 1998 (as amended), upon the appointment of the Special
Administrators on 16 June 2000, the Board of Directors shall not
perform or exercise any function as an officer of the Company
unless with the prior written approval of the Special
Administrators.

The Special Administrators had authorized the Board of Directors
to convene the Eighty Sixth Annual General Meeting of the
Company to transact the ordinary businesses of Annual General
Meeting.


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


NATIONAL BANK: Rehab Plan Shelved
---------------------------------
Philippine National Bank's proposed rehabilitation will be
shelved for a tentative period until the Bangko Sentral ng
Pilipinas (BSP) (Central Bank) has received all the relevant
proposals, The Philippine Star reported yesterday.

BSP Deputy Governor Alberto Reyes was quoted by The Star as
saying, "The BSP is waiting for the reverse rehabilitation
proposal, including its formula in dealing with the P25-billion
emergency loan." Mr Reyes added that the BSP remains confident,
however, that the bank can proceed with the rehabilitation
within the year.

One of the major encumbrances that BSP is trying to hurdle, the
newspaper said, is the provision of emergency loans worth R15
billion and P10 billion granted by BSP and the Philippine
Deposit Insurance Corporation respectively to the bank, the
newspaper said. This is so, since BSP, under law is not allowed
to hold equity in any bank.

However, an option is proposed that PDIC could assume the total
amount of both emergency loans, which could then be converted
into equity. PDIC, the newspaper said, will issue promissory
note to BSP for the amount of P10 billion, but only if the
government has enough reserves to cover the promissory note.


NATIONAL POWER: Losing Strength, ADB Says
---------------------------------------
Asian Development Bank (ADB), in its assessment of the National
Power Corporation's (Napocor) present condition, said that the
state-owned debt-stricken power firm might not be able to
survive, Malaya Business reported yesterday.

ADB cited that Napocor lacks the money to secure its existence
in the next five years without power blackouts, Malaya said.

The report added that Napocor, which lost P13 billion last year,
has been subsisting on its huge borrowings to pay debts and
finance capex.

According to Energy Secretary Isidro Camacho, a total investment
of P382 billion would be necessary to secure the power sector in
the next 10 years.


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


BRIERLEY INVESTMENTS: Conflicted Chair Steps Aside
--------------------------------------------------
Sir Selwyn Cushing has advised the Board of Air New Zealand that
he is immediately stepping aside as Chairman pending the outcome
of a proposal by Qantas Airways to acquire a significant
shareholding in Air New Zealand from Brierley Investments
Limited and Singapore Airlines Limited.

Sir Selwyn has also advised that he intends to make a statement
to the Singapore Stock Exchange regarding his chairmanship of
Brierley Investments Limited later in the day.

Sir Selwyn will remain a director of both Air New Zealand and
BIL. It is inappropriate in the circumstances for Sir Selwyn to
make any further comment.


LIM KAH NGAM: Subsidiaries Established
--------------------------------------
The Board of Directors of Lim Kah Ngam Limited stated WhiteBox
Computer Pte Ltd, which is wholly owned by Primefield Company
Pte Ltd, a wholly owned subsidiary of the Company, established
two subsidiaries, the particulars of which are as follows:

1. WhiteBox Computer (Malaysia) Sdn Bhd

(i) Principal activities: Retailing, distributing and selling of
WhiteBox computer products

(ii) Place of Incorporation: Malaysia

(iii) Authorized Capital: RM1,000,000 (divided into 1,000,000
ordinary shares of RM1.00 each)

(iv) Issues/Paid-up capital: RM300,000

- WhiteBox Computer Pte Ltd owns 60 percent (RM180,000)

2. WhiteBox Computer Vietsin Co., Ltd

(i) Principal activities: Assembling, retailing, distributing
and selling of WhiteBox computer products

(ii) Place of Incorporation: Vietnam

(iii) Investment Capital: US$500,000

(iv) Legal Capital: US$150,000

- WhiteBox Computer Pte Ltd owns 75 percent (US$112,500)

None of the Directors nor the substantial shareholders of the
Company have any interest in the aforesaid Subsidiaries.

Further, the establishment of the Subsidiaries will not have any
impact on the Company's net tangible assets and earnings per
share for the financial year ending 31 December 2001.


SEMBCORP INDUSTRIES: To Issue $150-M Medium-Term Notes
------------------------------------------------------
SembCorp Industries announces that it will issue a second series
of $150 million seven-year fixed rate notes and a third series
of $100 million three-year fixed rate notes under its $500
million Medium Term Note (MTN) Program. It issued the first
series of these Notes in October 2000.

These second and third series will respectively bear fixed rate
coupons of 4.125 percent per annum and 3.21 percent per annum,
payable semi-annually in arrears. The earlier series of $250
million five-year fixed rate notes bore a fixed coupon rate of
4.45 percent per annum.

The mandate for the second MTN series was awarded to UOB Asia
Limited as Lead Manager. The mandate for the third MTN series
was awarded to Overseas Union Bank Limited and The Hongkong and
Shanghai Banking Corporation Limited as Joint Lead Managers.

The $250 million from these two series will be used to refinance
a portion of SembCorp Industries' existing debt and for the
Group's capital expenditure. The Notes, when issued respectively
on or around June 6, 2001, and June 7, 2001, will be listed on
the Singapore Exchange Securities Trading Limited.

Fund Raising by Accessing Equity Capital Markets Not Required in
2001

With the issuance of these Notes, SembCorp Industries does not
foresee the need to access the equity capital markets given
current market conditions. The Group's capital expenditure for
2001 is now reduced due to the postponement of some projects
into 2002.

The current year's capital requirement can therefore be
satisfied by a combination of operating cashflows, bilateral
facilities and proceeds from divestments.

A review of projects slated for 2002 is also being conducted
which may result in the estimated capital expenditure for next
year being reduced as well.

SembCorp Industries will therefore not need to raise equity
until it wins a major project.


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


PHAYATHAI 2: Creditors, Planner Call For Plan Revisions
-------------------------------------------------------
Phayathai 2 Hospital, a subsidiary of Prasit Patana PLC, its
creditors and its planner PricewaterhouseCoopers have proposed
revisions to the hospital's business rehabilitation plan,  
postponing the creditors' meeting set for Monday to June 20,
Bangkok Post reported Tuesday.

The rehabilitation plan was filed by the company's planner
PricewaterhouseCoopers with the Central Bankruptcy Court in
October 2000.

The proposed revisions in the plan will fall in issues
concerning debt repayments and cashflow estimates.

The hospital has outstanding debts amounting to Bt4.6 billion
owed to creditors, over a third of the group's total debts of
Bt12 billion.


PHAYATHAI 2: Planner Clarifies Report Re Merger
-----------------------------------------------
Pricewaterhouse Coopers Corporate Restructuring Limited as
Planner of Prasit Patana Public Company Limited said the Prasit
Patana received a news clipping concerning the possible merger
of Phayathai Group of hospitals and Bamrungrad Hospital as
printed in Krungthep urakij Newspaper on 29 May 2001.

Prasit Patana states it has no prior knowledge of this
announcement and has not been involved in any negotiation or
discussion of such a merger.  

We confirm that, because of the appointment of the Planner under
the Bankruptcy Act B.E. 2483, as amended, the shareholders and
directors of the parent company at present have no authority to
control or manage the business, or to negotiate or agree with
other parties in relation to merging with or acquiring other
businesses.

The Act Section 90/25, clearly states that "subject to Section
90/42 and Section 90/64, upon an appointment of the plan
preparer is made by the Court, the power and duties in managing
the business and asset of the debtor and all legal rights of the
debtor's shareholders, except the right to receive dividend
shall be vested in the plan preparer."

As the Planner of the company, PricewaterhouseCoopers Corporate
Restructuring Limited who is responsible for preparing the
rehabilitation plan confirms to the Stock Exchange of Thailand
that the rehabilitation plan does not contain any proposal or
intention to merge with or acquire any other company or
business.


PRASIT PATANA: SET Lifts "SP" Sign
----------------------------------
The Stock Exchange of Thailand (SET) announced that Prasit
Patana has publicly disclosed the clarification concerning an
unconfirmed new regarding the merger of its subsidiary Phayathai
Group of hospitals and Bamrungrad Hospital through the SET
already.

SET lifted the "SP" sign assigned to the company's stock
effective from the morning session yesterday onwards.


THAI HEAT: Court Extends Submission Of Plan Deadline
----------------------------------------------------
Thai Heat Exchange Public Company Limited received court
approval on 25 May 2001, of a deadline extension for the
submission of the rehabilitation plan to the Central Bankruptcy
Court for one month from 27 May 2001 to 27 June 2001 by the
reorganization planner of Thai Heat Exchange PCL.


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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