TCRAP_Public/010626.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

            Tuesday, June 26, 2001, Vol. 4, No. 124


                         Headlines


A U S T R A L I A

ALPHA HEALTHCARE: Ramsay Raises Substantial Holding
ALPHA HEALTHCARE: Ramsay Files Offer Extension Notice
BEACONSFIELD GOLD: Requests Receiver Appointment
BEACONSFIELD GOLD: Dir. Johanson Resigns
BEACONSFIELD GOLD: Directors Resign
BEACONSFIELD GOLD: Posts Q3 Activities Report
CBD ONLINE: Extent Of Losses Still Undetermined
FRANKLINS AUSTRALIA: Sells Stores To Foodland
ONE.TEL LIMITED: Centrica Wants UK Unit
ONE.TEL LIMITED: iiNet Not Exposed To Group


C H I N A   &   H O N G  K O N G

CITIMAX ENGINEERING: Faces Winding Up Petition
DORTEAKY DEVELOPMENT: Hearing of Winding Up Petition Set
GUANGDONG INT'L: Court Includes Key Asset In Liquidation
HUBEI XINGFU: Expects To Post H1 Losses
IASIAWORKS: HK Unit Put Into Provisional Liquidation
UPYEAR LIMITED: Petition To Wind Up Slated
WAI KEE DECORATION: Winding Up Petition Set For Hearing


I N D O N E S I A

ASIA PULP: Indonesian Units Seeking Debt Standstill
CHANDRA ASRI: IBRA Seeks Capital Reduction
GAJAH TUNGGAL: US$1.5B Debt Restructure Set For July


J A P A N

AIR DO: Public Fund Infusion Drawing Scrutiny
GARNET CONNECTIONS: Self-Liquidation Planned
SEIYO CORP: Creditors OK Liquidation Plan


K O R E A

DAEWOO HEAVY: To Graduate From Debt Workout By Next Year
DAEWOO SHIPBUILDING: August Completion Of Workout Likely
DONG AH: Libyan Gov't Withdraws $3.5B Suit
DOOSAN CORP: Selling OB Beer Shares To HopsCooperative
HAITAI CONFECTIONERY: UBS Consortium To Take Over
HYNIX SEMICON: Creditors To Raise Loss Reserves
HYUNDAI ENGINEERING: FSS, Creditor Banks Offer Bridge Loans
HYUNDAI MERCHANT: Sells 2M HHI Stake


M A L A Y S I A

GEORGE KENT: Defaults On Debt Payments
INSTAGREEN CORP: Explains Variance In Audited Results
JOHAN HOLDINGS: Defaults Payment On Credit Facilities


P H I L I P P I N E S

NATIONAL BANK: Gov't, Tan To Close Deal Re Rehab Plan
NATIONAL POWER: Bridge Financing Planned To Stem Losses
RFM CORP: Pepsico, San Miguel Battling For Cosmos


S I N G A P O R E

ASIA PULP: To Carry Out Cost-Cutting Schemes


T H A I L A N D

ADVANCE AGRO:  Workout Talks With Bondholders Ongoing
DATAMAT PUBLIC: Closing Of Shares Register Set
EASTERN WIRE: Court OKs Rehab Plan, Appoints Administrator
THAI PETROCHEM: IFC Approves Loan
TPI POLENE: Needs Capital-Raising Deadline Extension
TUNTEX (THAILAND): Board OKs Date, Agenda Of EGM

     -  -  -  -  -  -  -  -

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


ALPHA HEALTHCARE: Ramsay Raises Substantial Holding
---------------------------------------------------
Ramsay Centauri Pty Ltd increased its relevant interest in Alpha
Healthcare Limited on 22 June 2001, from 38,984,685 ordinary
shares (86.4 percent) to 39,573,857 ordinary shares (87.7
percent).


ALPHA HEALTHCARE: Ramsay Files Offer Extension Notice
-----------------------------------------------------
Ramsay Centauri Pty Limited said a Notice was lodged today with
the Australian Securities and Investments Commission pursuant to
section 650D of the Corporations Law. A copy of the Notice was
sent to Alpha Healthcare Limited, and each shareholder to whom
the Takeover Offer relates, who has not yet accepted the
Takeover Offer.

Ramsey also attached a copy of a notice given under section
630(2)(b), which also was filed with the Australian Securities
and Investments Commission today. A copy of the notice was also
sent to Alpha and the shareholders to whom the Takeover Offer
relates who have not yet accepted the Takeover Offer.

For questions in relation to the above matter, contact Lisa
Mather on 9258 5708.

Notice Of Variation Of Takeover Offer

For all the ordinary shares in Alpha Healthcare Limited ACN 000
727
882

TO: Alpha Healthcare Limited ACN 000 727 882

AND TO: The holders of fully paid ordinary shares in Alpha
Healthcare
Limited ACN 000 727 882 registered on 19 April 2001 (the
Offerees).

1. Extension Of Offer Period

By this notice Ramsay Centauri Limited ACN 090 070 156 (Ramsay
Centauri) varies its offers dated 26 April 2001 for all of the
fully paid ordinary shares in Alpha by:

(a) further extending the period during which the Offers remain
open for acceptance until 7pm Sydney time on 6 July 2001;

(b) substituting the date 6 July 2001 for the date "28 May 2001"
(the "Original Close of Offer Date"), in section 1, clause 2 of
the Bidder's Statement dated 12 April 2001, which includes the
Offer dated 26 April 2001, the Original Close of Offer Date
previously having been extended until 23 June 2001;

(c) substituting the date 6 July 2001 for the date "28 May
2001", under the sub-heading "The Offer" in the letter from the
Chairman of Ramsay Health Care Limited to Alpha Shareholders,
which appears at the front of the Offer document dated 26 April
2001; and

(d) substituting the date 6 July 2001 for the date "28 May
2001", under the heading "Important Dates" which appears at the
inside front cover of the Offer document dated 26 April 2001.

Notice Under Section 630(2)(b) Of The Corporations Law

TO: Alpha Healthcare Limited ACN 000 727 832

Ramsay Centauri Pty Limited ACN 096 070 156 (the Bidder) gives
notice under section 630(2)(b) of the Corporations Law that:

(a) as a result of a further extension of the period for which
the offers dated 26 April 2001 (the Offers) by it under its off-
market takeover bid to acquire all of the fully paid ordinary
shares in Alpha Healthcare Limited are open for acceptance, the
date in clause 5.4 of Section 1 in the Bidder's Statement dated
12 April 2001 for giving notice on the status of conditions of
the Offers is re-set as 29 June 2001;

(b) the Bidder has declared the Offers free from the conditions
set out in clause 5.1 of Section 1 of the Bidder's Statement,
which includes the Offers;

(c) so far as the Bidder knows, the conditions of the Offers set
out in clause 5.1 of Section 1 of the Bidder's Statement were,
at the time of giving this notice, fulfilled.


BEACONSFIELD GOLD: Requests Receiver Appointment
------------------------------------------------
The boards of directors of Beaconsfield Gold NL and its
subsidiary companies Beaconsfield Gold Mines Pty Ltd,
Beaconsfield Operations Pty Ltd and Beaconsfield Tasmania Pty
Ltd have resolved to ask BankWest to appoint a receiver to those
companies. In the opinion of the boards of directors, the
companies are unlikely to be able to meet their ongoing
financial commitments.

Recent Events

Week Commencing 21 MAY 2001

Beaconsfield Gold was due to pay approximately $1.3 million in
interest (six monthly payment) to its banker, BankWest, by 25
May 2001. Due to poor gold production receipts during May from
the company's share of the Beaconsfield Mine Joint Venture
(BMJV), Beaconsfield Gold was only able to pay approximately
$0.75 million, leaving approximately $0.55 million outstanding.

Week Commencing 28 May 2001

Beaconsfield Gold put forward another proposal to merge Allstate
and Beaconsfield Gold. In the proposal, Beaconsfield Gold was to
make an agreed scrip takeover offer for Allstate to move to 100
percent ownership of the Beaconsfield mine, and the bankers to
the two companies were to jointly syndicate the debt facilities
with the new Beaconsfield Gold.

On 1 June 2001, Beaconsfield Gold paid a further $50,000 to
BankWest towards the outstanding interest bill, reducing it to
approximately $0.5 million.

Week Commencing 4 June 2001

Beaconsfield Gold was brought up to date with the activities and
financial position of the BMJV by the manager, Allstate
Explorations NL (Allstate), at a BMJV committee meeting on 7
June 2001.

On 8 June 2001, the directors of Allstate announced that
Allstate was being placed in voluntary administration.

Week Commencing 11 June 2001

The administrator of Allstate assumed management of the BMJV and
issued a cash call under the Joint Venture that is due for
payment on 6 July 2001.

Beaconsfield Gold reviewed its cash position going forward and
proposed to BankWest that Beaconsfield Gold shareholders be
asked to participate in a non-renounceable rights issue.

Week Commencing 18 June 2001

BankWest served notices of default and demand for outstanding
monies under the BankWest facilities on the Beaconsfield Gold
group companies. If payment was not made in accordance with the
notices or Beaconsfield Gold indicated that it could not repay
the amount owing to the bank, the bank's intention was to
appoint a receiver to Beaconsfield Gold.

Beaconsfield Gold proposed to BankWest that, in addition to a
rights issue, Beaconsfield Gold seek sufficient loan funds from
third parties by 6 July 2001 to stabilize the company's position
in the BMJV and to repay the outstanding interest owed to
BankWest.

Beaconsfield Gold continued to investigate ways of attracting
the loan funds required late in the week and over the weekend,
but without success.

Future Of The Beaconsfield Mine

Beaconsfield Gold considers that a likely scenario going forward
is that a financially strong, experienced mining company
purchases 100 percent of the Beaconsfield gold mine. In that
case, the future of the mine will be secure under strong
operating management and the potential to extend the life of the
mine and locate additional orebodies on the
Beaconsfield exploration tenements will be enhanced.

The company remains convinced that, well managed, the mine will
be highly profitable and will continue to operate and provide
employment and economic benefits to the Tasmania community. The
board has played a significant role in the development of the
mine over many years. Several directors have been associated
with the project's progress since late 1979.

The directors have received gratifying support from various
shareholders and others over the last several weeks and would
like to record their appreciation of that support.

Suspension of Trading

The company has requested the continued suspension of trading in
the securities of the company, in accordance with the listing
rules.


BEACONSFIELD GOLD: Dir. Johanson Resigns
----------------------------------------
Robert Johanson has resigned as director of Beaconsfield Gold NL
and its subsidiary companies Beaconsfield Gold Mines Pty Ltd,
Beaconsfield Operations Pty Ltd and Beaconsfield Tasmania Pty
Ltd effect Thursday last week, 21 June 2001.

Johanson has been a director of Beaconsfield Gold NL since 1992
and was a founding director.

"The Board greatly appreciates the contribution Mr Johanson has
made to the company over the past nine years," said C B Walker,
company secretary.


BEACONSFIELD GOLD: Directors Resign
-----------------------------------
At the close of business on 22 June 2001, Harry Stacpoole
resigned as a director of Beaconsfield Gold NL and its
subsidiary companies Beaconsfield Gold Mines Pty Ltd,
Beaconsfield Operations Pty Ltd and Beaconsfield Tasmania Pty
Ltd.and George Drysdale resigned as a director of Beaconsfield
Gold NL.

Stacpoole was a director and chairman of Beaconsfield Gold NL
since 1992 and was a founding director. Prior to the formation
of Beaconsfield Gold NL, he was a chairman of the predecessor
company, Beaconsfield Gold Mines Limited. "The Board greatly
appreciates the very strong contribution Mr Stacpoole has made
to the company over the past nine years," Company Secretary C B
Walker said.

Drysdale was appointed a director of Beaconsfield Gold NL in
February 2001. Drysdale's company, Drysdale Metals Pty Ltd, is
the largest shareholder in Beaconsfield Gold NL. He has
consistently led the way in supporting equity raisings for
Beaconsfield Gold since Drysdale Metals first became a
shareholder in 1999 and the board greatly appreciates his very
strong support in recent years.


BEACONSFIELD GOLD: Posts Q3 Activities Report
---------------------------------------------
Beaconsfield Gold NL released the following activities report
for the third quarter:

Highlights

* Commissioning/optimization of 200,000 tpa ore treatment plant
continuing with March quarter gold production at rate of 73,000
ounces per year despite Merrill-Crowe filtration restrictions
(which were overcome early April).

* Since Merrill-Crowe filtration restrictions have been
resolved, total gold production has averaged 274 ounces per day,
significantly better than average of 199 ounces per day for
March quarter.

* 45,899 tons of ore at head grade of 13.9 g/t milled during the
quarter to produce 17,886 ounces of gold.

* Completion of a duplicate Bacox residue thickener in early May
will increase Bacox capacity, reduce neutralization gold losses
and allow greater operational flexibility.

* Beaconsfield Gold's net operating cash flow before capital
expenditure for quarter positive $1.0 million. Net operating
cash flow should increase going forward as costs are reduced
from the current high commissioning levels and gold production
increases.

Beaconsfield Mine Joint Venture (Beaconsfield Gold Beneficial
Interest 61.7 percent)

Beaconsfield Mine

The Hart Shaft

During the quarter, 46,689 tons (dry) of ore (last quarter
48,849 tons) and 35,152 tons (wet) of waste (last quarter 19,379
tons) was hoisted to the surface. An additional 17,194 tons of
development waste (last quarter 35,015 tons) generated during
the quarter was not hoisted, being directly used as stope
backfill. A total of 9,786 tons of "Sand fill" (last quarter
6,444 tons) was also used to fill stope voids.

Decline & Level Development

For the quarter, total waste development was 834 meters (last
quarter 828 meters) with 150 meters completed in the main access
decline (last quarter 173 meters). The decline is now at the
take-off point for the 680 meter level stopes. The primary
development fleet now consists of a two-boom drilling jumbos two
single-boom drilling jumbos, seven LHD loaders and two 32 ton
trucks.

Horizontal development was primarily off-decline and stope
access development at the 630 and 655 meter levels. Ground
conditions for the waste development continued to be excellent,
enabling good progress to be achieved. The eighth main level of
stopes at 655 meters depth was opened up during the quarter.

Ore Mining

A total of 42,715 tons at 14.5 g/t gold was mined in the quarter
(last quarter 42,167 tons at 17.0 g/t) from a total of 17 stopes
(last quarter 15 stopes). Total ore mined and held in surface
stockpiles at 31 March 2001 was approximately 2,200 tons
(approximately 1,000 tons at the end of the last quarter).

Reconciliation between estimated mined grades and mill-
reconciled head grades is continuing to improve. For the
quarter, the grades were 14.5 g/t and 13.9 g/t respectively for
a 96 percent reconciliation. While there are still some
metallurgical accounting issues to be resolved, greater
consideration continues to be given to ore losses in mining
stopes, in underground stockpile areas and during the
changeovers from separately hoisting waste and ore.

Average mined grade for the quarter was some 15 percent lower
than for the previous quarter. Problems occurred with the
planned backfilling of several higher grade stopes during
January and February and were only overcome towards the end of
the quarter. Mining in March contributed 16,822 tons at 15.9 g/t
gold, representing a disproportionate 39 percent of the
quarter's tons and 43 percent of the mined gold for the quarter.

Dewatering

Total pumping rate from the mine during the quarter was an
average of 112 liters per second (last quarter 144 liters per
second). Pumping was a combination of face pumping, pumping from
three small-diameter sub-horizontal drain holes on the 580 meter
level, and pumping from one large-diameter vertical borehole
collared on the 530 meter level.

The borehole pump continued to be cycled on and off during the
quarter as water inflow into the borehole was insufficient to
allow pumping full time. As a result the water level in the
borehole fluctuated between 673 meters and 706 meters below
surface.

Pumping rates have continued to decline due to lower
infiltration rates and are the lowest recorded since pumping
recommenced in April 1994.

Ore Treatment Plant Commission/Optimization

Gold production as bullion for the quarter was 17,886 fine
ounces or 199 ounces per day, the same rate as for the previous
quarter. As discussed below, following a very good start to the
quarter, gold recovery to bullion was then adversely affected by
restrictions associated with the filtering of the cyanide leach
residue and the subsequent Merrill-Crowe circuit. Those
restrictions were overcome in the first week of April and gold
production subsequently has been at record levels.

In the 22 days to 26 April 2001, gold shipments from the mine
have totaled approximately 6,025 ounces of fine gold (based on
preliminary bar assays). This equates to approximately 274
ounces per day, significantly better than the average of 199
ounces per day for the March quarter.

Gold production by quarter shows the improvement being achieved.

QUARTER      GRAVITY  BACTERIAL     TOTAL     TOTAL
ENDING     GOLD  OXIDATION   PRODUCTION  GOLD      OF 100,000
PERCENTAGE  PRODUCTION  PRODUCTION  (OUNCES)    PRODUCTION
OUNCES
PER         (OUNCES)   (OUNCES)              (OUNCES/DAY)  YEAR
RATE

1999 September   451         0        451       N/A
2%
1999 December      5,443     3,104      8,547        93
34%
2000 March         8,958     5,118     14,076       155
57%
2000 June          7,939     7,074     15,013       165
60%
2000 September     7,390    10,230     17,620       192
70%
2000 December      7,861    10,432     18,293       199
73%
2001 March         5,453    12,433     17,886       199
73%

A total of 45,899 tons at a mill-reconciled grade of 13.9 g/t
gold was milled during the quarter (last quarter 50,107 tons at
16.0 g/t). Gold recovery (excluding gold in inventory changes)
averaged 87.1 percent overall (last quarter 71.0 percent).

Bacterial oxidation (Bacox) gold production increased
significantly during January, following the completion of the
mechanical modifications to the Bacox circuit in the December
quarter. By the first week of February, Bacox gold production
had risen to around 200 ounces per day or some 25 percent
greater than the feasibility study target of approximately 160
ounces per day.

Over February and March, however, Bacox gold production
progressively declined (to around 80 ounces per day) as
increasing restrictions were, experienced with the filtering of
the cyanide leach residue and the subsequent Merrill-Crowe gold
recovery circuit. The solutions being treated were becoming
progressively more cloudy and experiments with various
coagulants and flocculants were carried out without success.

In early April, it was finally recognized that the cause had
been progressively lower levels of lime addition to the circuit.
Lime addition is necessary to control the pH of the bacox
residue ahead of the cyanide leach circuit. What had not been
realized by the site personnel was that the calcium in the lime
was a critical coagulant for the solutions being treated after
the cyanidation circuit. Once the lime levels were increased,
the solutions ceased to be cloudy, the filtering problems were
overcome and gold production increased dramatically as discussed
above.

The construction of a duplicate Bacox residue thickener was
substantially completed by the end of the quarter and is
expected to be completed in early May. This will provide
additional capacity to treat Bacox product, reduce gold losses
via the neutralization circuit and allow greater flexibility in
operations.

Construction Contract & Insurance Claims

In August 2000, the Joint Venture submitted claims totaling
approximately $19 million to recover costs and losses to 30 June
2000 arising from the delay in achieving targeted commercial
production levels.

Allstate, as Manager for the Joint Venture, and the contractor
are presently discussing the resolution of the claims.
Concurrently with those discussions, the claims are proceeding
to arbitration, in accordance with the contract.

Exploration

No significant regional exploration was undertaken on either the
Joint Venture or the Beaconsfield Gold exploration licenses
during the quarter.

Costs

The Beaconsfield Mine Joint Venture commenced accounting on an
operating basis from 1 July 2000 even though the ore treatment
plant had not achieved commercial production levels.

Total cash operating expenditure for the quarter for the Joint
Venture was $7.842 million. Total gold produced for the quarter
(excluding changes in gold inventory) was 17,886 fine ounces.

Average cash operating cost of $438 per ounce produced
(excluding gold in inventory changes) for the quarter was higher
than budget but was a further improvement on the previous
quarter ($449 per ounce). Cost per ounce should continue to
reduce significantly going forward as operating costs are
reduced from the current high commissioning levels and gold
production continues to increase.

Production & Costs Summary

QUARTER ENDING     ORE    ORE   HEAD  GOLD    GOLD  TOTAL  CASH
                  MINED  MILLED GRADE MILLED  RECOV GOLD

OPERATING
                 (t)     (t)     (g/t) (oz)    (%)   PRODN
COSTS
                                  (1)          (2)   (oz)
(A$/oz)

1999 September   14,546    7,000   N/A   N/A    N/A     451  N/A
1999 December    29,613   30,986  12.3  12,250 69.8   8,547  N/A
2000 March       37,754   51,103  12.9  21,200 66.4  14,076  593
2000 June        41,820   49,699  13.3  21,200 71.0  15,013  583
2000 September   40,165   51,988  12.3  20,550 85.7  17,620  483
2000 December    42,167   50,107  16.0  25,750 71.0  18,293  449
2001 March       42,715   45,899  13.9  20,530 87.1  17,886  438

1. Mill reconciled head grade.
2. Gold recovery excluding changes in gold in circuit.

Beaconsfield Gold Corporate

Gold Hedging

During the quarter, Beaconsfield Gold delivered 10,162 ounces of
gold into the flat forwards so that, at 31 March 2001, the hedge
book consisted of 169,780 ounces of flat forwards and 8,000
ounces as a long term forward.

The flat forwards, for which the date of delivery or close out
is flexible, cover the period to June 2004 at an average gold
price of approximately A$565 per ounce gross or A$537 per ounce
net after arrangement and 1.5 percent per annum gold leasing
costs. The long term forward has a delivery date of July 2004
and an average gold price after arrangement and 1.5 percent per
annum gold leasing costs of approximately A$486 per ounce.

Beaconsfield Gold's average gold leasing cost for the quarter
was again below the assumed 1.5 percent per annum rate and the
average net gold price received was A$549 per ounce, A$53 per
ounce greater than the shipment weighted average spot price for
the quarter of A$496 per ounce.

Total treasury proceeds raised from the hedge book for the
quarter were $0.5 million and total proceeds raised since the
inception of the hedge book up to 31 March 2001 were $5.4
million.

At 31 March 2001, with the spot price of gold at A$527 per
ounce, the approximate marked to market value of the company's
hedge book was negative A$4.0 million.

Operating Cash Flow

Beaconsfield Gold's 48.49 percent direct share of net operating
cash flow before capital expenditure for the quarter was
positive $1.0 million. Net cash flow should increase going
forward as costs are reduced from the current high commissioning
levels and gold production continues to increase.

Beaconsfield Gold's 48.49 percent direct share of capital
expenditure for the quarter was $0.9 million.

BankWest Debt Facilities

The restructuring of the debt facilities with BankWest (proposed
last quarter) was approved by Beaconsfield Gold shareholders at
an EGM during the quarter.

At the end of the quarter, Beaconsfield Gold had a balance of
$27.75 million outstanding with the BankWest project loan plus a
$4.5 million convertible note with BankWest.

Beaconsfield Gold Issued Securities

The issued securities for Beaconsfield Gold are as follows:

TYPE OF SECURITIES                         NUMBER OF  ASX CODE
                                           SECURITIES

Fully Paid Ordinary Shares                 75,677,102     BCD
Listed Options ($1.25 - 15/3/02)           6,895,551    BCDOC
Company Option Scheme (average $1.06)      2,355,000
BankWest Options ($0.45 - 31/12/02)        2,500,000
BankWest Convertible Note ($4.5M @
$0.50 - 31/12/04)                            1


CBD ONLINE: Extent Of Losses Still Undetermined
-----------------------------------------------
CBD Online Limited revealed the company's Board has met to
consider the results of the accounting review conducted
following the transfer of its accounting records from the
Halescom office to the CBD office.

The Board has determined to seek advice from the Company's
auditors before determining the extent of the Company's losses,
including further write-offs of goodwill, and has adjourned the
Board meeting to Monday, 25 June 2001 pending the receipt of
this advice.

As previously related to the market, the nature and extent of
the write-offs and the predicted extent of the operating loss
will be announced as soon as they have been ascertained by the
directors.


FRANKLINS AUSTRALIA: Sells Stores To Foodland
---------------------------------------------
Foodland Associated Limited (FAL) announced yesterday it signed
a contract to purchase 36 Franklins stores in Queensland and
northern New South Wales. The company also signed a heads of
agreement to purchase Franklins' Richlands warehouse and Rocklea
fresh produce facility.

Both agreements are subject to satisfaction of normal
preconditions. The total purchase consideration will be
approximately $155 million, plus inventory.

FAL Group Managing Director Trevor Coates commented, "We look
forward to presenting the consumers in Queensland and northern
New South Wales with a supermarket offer which we are confident
they will find competitive and appealing. We also look forward
to providing the many Franklins employees who will be invited to
join our staff with career opportunities and training, which
they will find both challenging and rewarding. Finally, we look
forward to working with our suppliers to build on the mutually
rewarding and honest partnerships which are already in place in
Western Australia and New Zealand.

"Our first task is to work with Franklins' landlords to achieve
a smooth transition process. Initial presentations have already
been completed and will be followed up with formal letters,
which are being mailed [Monday]. We are proposing a substantial
investment program to convert all of the stores to a new format.
This will be a positive improvement and enhancement of the
respective businesses," said Coates.

A list of the stores included in the contract is attached.

Stores Included In The Contract

Franklins Format      Property Name            City
Store No

2123      No Frills   Kempsey                Kempsey
2156      Fresh       Port Central           Port Macquarie
2157      Fresh       Park Beach Plaza       Coffs Harbour
4406      Fresh       Ashmore City           Ashmore
4408      Fresh       Bundaberg Plaza        Bundaberg
4409      Fresh       Canelands              Mackay
4417      Fresh       High St Plaza          Toowoomba
4419      Fresh       Mt Gravatt Food World  Mount Gravatt
4420      Fresh       Stafford City          Stafford
4425      Fresh       Tweed City             Tweed Heads South
4428      Fresh       Noosa Junction Plaza   Noosa
4430      Big Fresh   Clifford Gardens       Toowoomba
4434      Mini Fresh  Regency Plaza          Browns Plains
4437      Fresh       Earlville              Cairns
4438      Fresh       Stones Corner Village Centre Stones Corner
4442      Fresh       Ballina Fair           Ballina
4444      Fresh       Sugarlands Shoppingtown Bundaberg
4445      Fresh       Stockland              Townsville
4448      Fresh       Brookside              Mitchelton
4450      No Frills   Caloundra Village      Caloundra
4452      Fresh       Fountain Plaza         Deagon
4456      Mini Fresh  Clontarf               Clontarf
4457      Fresh       Capalaba Park          Capalaba
4458      Fresh       Beerwah                Beerwah
4461      Fresh       Birkdale Fair          Birkdale
4462      Fresh       Mudgeeraba Market      Mudgeeraba
4464      Fresh       Bay Central            Hervey Bay
4465      Fresh       Kingscliffe            Kingscliffe
4467      fresh       McDowall               McDowall
4469      Fresh       Gold Coast Super Centre Mermaid Waters
4473      Fresh       Winston Glades         Yamanto
4475      Fresh       Westfield Strathpine   Strathpine
4485      Big Fresh   Rockhampton Fair       Rockhampton
4486      Big Fresh   Redbank Plaza          Redbank
4487      Fresh       Sunland Plaza          Townsville
4488      Fresh       Carindale              Carindale

Total      36


ONE.TEL LIMITED: Centrica Wants UK Unit
---------------------------------------
The administrators of One.Tel Limited is currently in
negotiations with Centrica over the latter's bid to acquire the
failed Australian telecoms group's British unit, The Guardian
reported last week.

According to analysts, the deal involves the sale price of 60
million pounds.

On May 29, One.Tel shares were suspended from trading after the
telecommunications firm announced insolvency through its due
diligence on the rights issue worth A$132 million, the report
says.


ONE.TEL LIMITED: iiNet Not Exposed To Group
-------------------------------------------
iiNet Limited Secretary C Hollingsworth advised the market
iiNet has no exposure to the One.Tel group of companies.


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


CITIMAX ENGINEERING: Faces Winding Up Petition
----------------------------------------------
The petition to wind up Citimax Engineering Limited is set for
hearing before the High Court of Hong Kong on July 11, 2001 at
10:00 am. The petition was filed with the court on May 18, 2001
by Lee Dick Seng of Flat J, 26th Floor, Block 8, Saddle Ridge
Garden, Ma On Shan, Shatin, New Territories, Hong Kong.


DORTEAKY DEVELOPMENT: Hearing of Winding Up Petition Set
--------------------------------------------------------
The petition to wind up Dorteaky Development Limited is
scheduled for hearing before the High Court of Hong Kong on
August 8 ,2001 at  9:30 am. The petition was filed with the
court on May 31, 2001 by Sin Hua Bank Limited, Hong Kong Branch
whose principal place of business is situated at 2A Des Voeux
Road, Central, Hong Kong.


GUANGDONG INT'L: Court Includes Key Asset In Liquidation
--------------------------------------------------------
The Supreme Court of Guangdong province has ruled that a key
asset of Guangdong International Trust and Investment
Corporation (GITIC) be included in its liquidation, South China
Morning Post reported yesterday.

The asset is the 63-story commercial and hotel complex in
Guangzhou, whose value is pegged between US$150 million to
US$200 million.

In October 1998, People's Bank of China ordered the closure of
GITIC, citing the company's failure to repay its debts. In
January of the following year, the company filed for bankruptcy,
with liabilities of 24.3 billion yuan.

Government liquidators said the company's net liabilities were
16.6 billion yuan, as its recoverable assets were only valued at
7.7 billion yuan.


HUBEI XINGFU: Expects To Post H1 Losses
---------------------------------------
Hubei Xingfu Industry Company announced that the company expects
to post losses in the first half-year period, The Asian Wall
Street Journal reported yesterday, citing Shanghai Securities
News.

The company, which is engaged in textile and aluminum
businesses, has been making losses for two straight years.
Should the loss-making continue, the company could face
sanctions under the trading restrictions in China.


IASIAWORKS: HK Unit Put Into Provisional Liquidation
----------------------------------------------------
iAsiaWorks, a data-center operator, has placed its Hong Kong
unit into provisional liquidation, blaming exhausted operations
fund and sluggish sales, South China Morning Post reported
yesterday. KPMG was appointed as provisional liquidator.

The 75 workers who were laid off Sunday were directly affected
by the company's state.

iAsiaWorks' Hong Kong unit operated three data centers, located
in Wan Chai, Chai Wan, and Kwun Tong. These centers served as
iAsiaWorks' headquarters in the Asia Pacific region.

iAsiaWorks is a company based in Silicon Valley. It offers
Internet data-center services in China, Hong Kong, India,
Indonesia, Japan and South Korea, Australia, New Zealand, the
Philippines, Singapore and Thailand.


UPYEAR LIMITED: Petition To Wind Up Slated
------------------------------------------
The petition to wind up Upyear Limited will be heard before the
High Court of Hong Kong August 1, 2001 at 9:30 am. The petition
was filed with the court on May 28, 2001 by Sin Hua Bank Limited
whose principal place of business in Hong Kong is situated at 2A
Des Voeux Road, Central Hong Kong.


WAI KEE DECORATION: Winding Up Petition Set For Hearing
-------------------------------------------------------
The petition to wind up Wai Kee Decoration and Furniture Company
Limited is scheduled to be heard before the High Court of Hong
Kong on July 11, 2001 at 9:30 am. The petition was filed with
the court on May 14, 2001 by Yu Koon Keung of Room 1601, Yiu
Chung House, Yiu On Estate, Ma On Shan, Shatin, New Territories,
Hong Kong.


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


ASIA PULP: Indonesian Units Seeking Debt Standstill
---------------------------------------------------
Asia Pulp & Paper's (APP) four Indonesian units are seeking a
hold on the principal and interest payments to rupiah
bondholders, owing to foreign creditors' pressures, Jakarta Post
reported Friday.

The four Indonesian subsidiaries are PT Pabrik Kertas Tjiwi
Kimia, PT Indah Kiat Pulp & Paper, PT Lontar Papyrus and
packaging firm, PT Pindo Deli.

According to PT Pabrik Kertas Tjiwi Kimia CEO Gunawan Taslim,
APP planned to negotiate with local bondholders over the
suspension of the bond payments.

He said, as quoted in the report, "We don't abide by the
principle of our debt moratorium if we have to make preferences
over which creditors we pay."

He also added that the company intended to defer interest
payments amounting to Rp42.5 billion.


CHANDRA ASRI: IBRA Seeks Capital Reduction
------------------------------------------
Indonesian Bank Restructuring Agency will likely ask Marubeni
Corp. to convert majority of its loan to PT Chandra Asri
Petrochemical Center into equity as an oversupply of
petrochemical products & the rising price of naptha will make it
hard for the local company to repay its remaining debt, Asian
Wall Street Journal reported yesterday, citing Bisnis Indonesia.

Earlier this year, Marubeni agreed to convert $100 million of a
$710 million loan to Chandra Asri into equity.


GAJAH TUNGGAL: US$1.5B Debt Restructure Set For July
----------------------------------------------------
PT Gajah Tunggal Tbk is hoping to complete the restructuring of
a US$1.5 billion debt by the end of next month, Asia Pulse
reports yesterday.

The system of restructuring is still being discussed with the
creditors, Company Finance Director Moeljati Gozhali said last
weekend. The company is asking for a roll over & debt to equity
swap.

The debt includes US$350 million to Bank Dagang Negara Indonesia
(BDNI) and the proposed debt to equity swap settlement for the
debt to BDNI, which has been taken over by the Indonesian Bank
Restructuring Agency.

Gozhali added if the proposed settlement is accepted, the
company's equity position would change from negative to positive
& have equity of minus Rp500 billion by the end of 2000.

The company increased its loss from Rp500 billion the year
before and Rp1.5 trillion last year due to the Rp3.2 trillion
loss on foreign exchange.


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


AIR DO: Public Fund Infusion Drawing Scrutiny
---------------------------------------------
The local government's plan, which was approved Friday by the
Hokkaido prefectural assembly, to provide Hokkaido International
Airlines (Air Do) a bailout fund worth Y1.95 billion using
public money is now under scrutiny, Kyodo News reported over the
weekend.


GARNET CONNECTIONS: Self-Liquidation Planned
--------------------------------------------
Garnet Connections Inc., a high-speed Internet access provider,
announced Friday the company will liquidate itself, owing to the
business' unprofitable future, Kyodo News reports over the
weekend.


SEIYO CORP: Creditors OK Liquidation Plan
-----------------------------------------
Creditors of real estate developer Seiyo Corporation have
approved the company's liquidation plan, Kyodo News reports
Friday. Under the plan, Credit Saison Company will provide Seiyo
Y11.7 billion to help fund the company's liquidation exercise.


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


DAEWOO HEAVY: To Graduate From Debt Workout By Next Year
--------------------------------------------------------
Daewoo Heavy Industries and Machinery, which was spun off from
Daewoo Heavy Industries, is expected to finish its debt workout
by next year, banking on improved cashflow and `external credit
worthiness' and high export revenues, The Digital Chosun
reported yesterday.

According to major creditor Korea Development Bank (KDB), the
company is expected to book ordinary income of over W70 billion
in the current year.

In the first quarter, the company recorded an ordinary income of
W29.2 billion, while capital on-hand will stand at W150 billion
by the end of June.


DAEWOO SHIPBUILDING: August Completion Of Workout Likely
--------------------------------------------------------
The debt workout program of Daewoo Shipbuilding and Marine
Engineering Corporation (DSMEC) is expected to be completed by
August, with stable shipbuilding orders, The Digital Chosun
reported yesterday.

The company, according to major creditor Korea Development Bank
(KDB), intends to repay debts amounting to W100 billion within
this month, following its repayments made in May on obligations
totaling W50 billion.

Moreover, the company expects its 2001 sales to generate as much
as W230 billion, after posting ordinary profits of W140 billion
in the first quarter.

After the completion of the debt workout in August, KDB plans to
dispose of its interest in DSMEC.


DONG AH: Libyan Gov't Withdraws $3.5B Suit
------------------------------------------
The Libyan government has decided to drop its $3.5 billion case
against Dong Ah Construction Ind. and Korea Express. The suit
was filed at a Tripoli court in November last year, The Digital
Chosun reported Friday.

The Libyan government explained that Dong Ah, now under
liquidation, had been carrying out the joint execution of the
manmade river projects in Libya with Korea Express well and
fast, the report says.

On July 6 the decision to withdraw the suit will be approved at
a meeting of Dong Ah's creditors with the Libyan Great Manmade
River Authorities. When approved, the parties will then forge
new terms for the completion of the construction work, including
the replacement of the water pipelines at the completed portion
of the waterway project.

Dong Ah declared bankruptcy late last year, before the suit was
filed by the Libyan government. The government then seized the
construction firm's assets in Korea.


DOOSAN CORP: Selling OB Beer Shares To HopsCooperative
------------------------------------------------------
Doosan Corporation is planning to sell its 45 percent stake in
OB Beer to Dutch investment firm HopsCooperative for W560
billion, The Digital Chosun reported yesterday.

Proceeds from the sale, according to Doosan President Park Yong-
man, will be directed to the servicing of the company's debts
amounting to W2 trillion.

In 1998, under the company's restructuring program, Doosan sold
half of its stake in OB Beer to Belgium-based Interbrew.


HAITAI CONFECTIONERY: UBS Consortium To Take Over
-------------------------------------------------
Haitai Confectionery Company has signed a preliminary agreement
with UBS Capital Consortium to sell its confectionery division
for the consideration of W480 billion, The Digital Chosun
reported Friday, citing Haitai creditor group.

The consortium includes members of UBS Capital, CVC Asia
Pacific, and JP Morgan.

Through the agreement, Haitai's creditor group plans to extend a
sum of W360 billion in loans to the consortium to finance the
acquisition.

Haitai was put under court control in May, with debts close to
W1.08 trillion.


HYNIX SEMICON: Creditors To Raise Loss Reserves
-----------------------------------------------
Four of the eight creditor banks of Hynix Semiconductor
Incorporated intend to raise their loan-loss provisions against
the ailing chipmaker, The Korea Herald reported yesterday,
citing bank sources.

An official at Korea Exchange Bank, Hynix's major creditor bank,
told Herald, "We need to accumulate more reserves against loans
to Hynix though the company has recently succeeded in attracting
foreign capital investment."

The official further explained that the creditor-led bailout
program for Hynix provided the company a three-year grace period
on its debt repayments.

Meanwhile, to keep the company afloat, Hynix has sought foreign
investments worth W1 trillion, apart from the issuance of
convertible bonds worth W1 trillion to the company's creditor
banks.


HYUNDAI ENGINEERING: FSS, Creditor Banks Offer Bridge Loans
-----------------------------------------------------------
The Financial Supervisory Service (FSS) and creditor banks of
Hyundai Engineering and Construction (HDEC) are planning to
provide bridge loans to the ailing builder, The Korea Herald
reported Friday.

This plan is being considered since HDEC creditors from the
secondary financial sector and the holders of foreign bonds with
warrants (BWs) have refused to participate in the bailout
exercise for the company, the report says.

An official at FSS was quoted by the Herald as saying the bridge
loans would total W2.15 trillion to cover the debt-for-equity
swaps and capital injection which was supposed to be made by the
non-bank creditors and BW holders.


HYUNDAI MERCHANT: Sells 2M HHI Stake
------------------------------------
Hyundai Merchant Marine (HMM) has sold around 22 percent of its
9.4 million shares in Hyundai Heavy Industries (HHI) to unnamed
buyers, The Digital Chosun reported yesterday, citing HMM
executive Gang Seong-guk.

Meanwhile, HMM is considering the sale of all its remaining
stake in HHI, to further boost its financial condition, and to
complete the spin off from the Hyundai Group.


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


GEORGE KENT: Defaults On Debt Payments
--------------------------------------
George Kent (Malaysia) Berhad referred to the announcement dated
12 January 2001, released by Aseambankers Malaysia Bhd on behalf
of George Kent (Malaysia) Berhad (GKM), wherein it was announced
that the Securities Commission (SC) on 4 January 2001 approved
the Proposed Rights Issue of Shares with Warrants, Proposed
Rights Issue of ICULS, Proposed Issue of Replacement Warrants
and Proposed New Employees Share Option Scheme (Proposed Fund
Raising Exercise).

One of the conditions imposed by the SC was the requirement for
GKM to furnish to the SC a Letter of Undertaking stating that
GKM will undertake all necessary steps and actions in order to
ensure continuous support from GKM's existing bankers.

GKM has been in negotiations with its Syndicated Lenders but to-
date has not been able to conclude a restructure of the
Syndicated Term Loan of RM49.2 million. Further, due to the
present state of the capital market, it will be difficult for
GKM to implement and complete the Proposed Fund Raising Exercise
within the six months validity period of the SC's approval which
will expire on 3 July 2001.

As such, GKM had on 13 June 2001 applied to seek the SC's
approval for an extension of time for another six months (ie. up
to 3 January 2002) to implement and complete the Proposed Fund
Raising Exercise.

The Proposed Fund Raising Exercise include a Proposed Rights
Issue of Shares with Warrants and Proposed Rights Issue of ICULS
which will raise approximately RM64.7 million to be utilized as
follows:

Part repayment to the Syndicated Lenders
and Bilateral Lenders of GKM -- RM30.0 million

Working Capital for GKM Group -- RM32.7 million

Estimated expenses relating to the Proposals -- RM2.0 million

Total -- RM64.7 million

In the meantime, pending the implementation of the Proposed Fund
Raising Exercise, the following credit facilities of GKM and two
of its subsidiaries are in default:

George Kent (Malaysia) Berhad

(a) Default in payment of principal sum of the Syndicated Term
Loan of RM49.2 million.

(b) Default in payment of principal sum of banking facilities
amounting to RM24.3 million extended by a financial institution.

The Syndicated Term Loan of RM49.2 million extended by six
Syndicated Lenders together with banking facilities totaling
RM49.7 million extended by seven Bilateral Lenders are presently
secured by a charge in favour of an Agent Bank acting as
Security Agent over GKM's land and building at Lot 1115, Batu 15
Jalan Dengkil, 47100 Puchong, Selangor Darul Ehsan and a charge
on a fixed deposit of RM1.6 million with a licensed bank.

The implication is that upon default the Agent Bank will be
entitled to enforce the charge over the assets pledged as
security.

GK-Hardie Sdn Bhd (GK-Hardie)

Default in payment of the principal sum of RM8.4 million and
interest of RM1.8 million in respect of banking facilities
extended by a financial institution.

The reason for the default in payment is that GK-Hardie had
ceased operations in March 1999 and the Company is currently in
negotiations with the bank to restructure the facilities.

The banking facilities are secured by a corporate guarantee of
GKM. The implication is that upon default the financial
institution can have recourse to GKM for the full or balance
amount outstanding.

GK Equities Sdn Bhd (GK-Equities)

(a) Default in principal repayment of a Revolving
Credit/Overdraft facilities amounting to RM9.9 million and
interest of RM675,606 extended by a financial institution.

(b) Default in principal repayment of a Revolving Credit
facility of RM5.0 million and interest of RM80,347 extended by a
financial institution.

(c) Default in payment of interest of RM49,894 in respect of a
Revolving Credit Facility extended by a financial institution.

The reason for the default is that GK-Equities, which is an
investment holding and trading company does not have sufficient
funds to effect both principal and interest payments. The
abovementioned credit facilities in default are secured by
pledge of quoted securities to each of the financial
institutions. The implication upon default is that each of these
financial institutions will be entitled to foreclose on the
quoted securities pledged.

None of the bank borrowings of GKM or its subsidiaries listed
above are secured under any debenture, which will empower the
debenture holder to appoint a receiver or receiver and manager
over the property of GKM or its subsidiaries.

GKM is currently in negotiations with the Syndicated Lenders and
Bilateral Lenders of GKM and all lenders of GK-Hardie and GK-
Equities to restructure their bank borrowings.

To date none of these financial institutions has taken any
action to enforce the charges created by GKM and the relevant
subsidiaries. As at date hereof, the Board of Directors of GKM
is not aware of any legal action being taken against GKM or its
subsidiaries by its lenders.

Profile

The Company was established in Penang in 1936 as a service
branch of the then parent company, George Kent Ltd, UK.
Subsequently, it was incorporated in 1951 as George Kent
(Malaysia) Bhd (GKM) and in 1974 went public through an offer
for sale of 40 percent of its share capital to Malaysians. In
1981, the controlling stake of GKM held by George Kent Ltd was
sold to Johan Holdings Bhd.

GKM is an engineering company involved in manufacturing, trading
and the investment and development of water infrastructure
schemes. The core business is in the water industry. Over the
years, it has grown to become the leader in the region in brass
products manufacturing. GKM is the market leader in the supply
of control instrumentation, telemetry, pipes, valves and
fittings, industrial and domestic water meters, water tanks and
building automation systems.

GKM is also involved in the manufacture of fiber glass
reinforced polyester (FRP) panel tanks for bulk water storage,
KWH electricity meters, brass extrusions and UPVC plastic pipes
for water supply and plumbing services.

GKM is a company with regional activities in ASEAN countries and
Papua New Guinea.

The company is located at Lot 1115, Batu 15 Jalan Dengkil 47100
Puchong Selangor with tel no 03-5715455; and fax no. 03-
5713295/9954.


INSTAGREEN CORP: Explains Variance In Audited Results
-----------------------------------------------------
Instagreen wishes to announce that the audited results of the
Group deviate from the unaudited results announced on 26
February, 2001. The reconciliation and explanation thereof are
set in the table below:

Unaudited  Audited   Difference
                       (RM'000)    (RM'000)  (RM'000)

Group loss before tax 27,451    145,059    -117,608

Group tax charge 22         21          1

Group loss after tax before Minority Interest
                       27,473    145,080     -117,607

Minority Interest -3,572   -8,641       5,069

Group loss after tax and Minority Interest
                         23,901   136,439     -112,538

The differences between unaudited and audited results were
mainly due to the following:

1. Group loss before tax

There was an additional provision of impairment in value of
fixed assets in respect of properties, plant and machinery,
construction in progress and properties under development in the
overseas subsidiaries, i.e. Lamdeal Holdings Ltd (LHL) and its
subsidiaries, amounting to RM116,768,000.

There was also an additional accrual for borrowing interest and
operations expenditure amounting to RM840,000.

2. Taxation

The taxation reduced by RM1,000, which is immaterial in this
context.

3. Minority Interests

The minority interest has increased by RM 5,069,000 as a result
of additional share of losses arising from the reasons mentioned
above.

Background

On 9 September 1999, Special Administrators from Deloitte Kassim
Chan, were appointed by Pengurusan Danaharta Nasional Bhd over
Instangreen and two of its subsidiaries -- Instangreen
(Landscape) Sdn Bhd and SPJ Construction Sdn Bhd.

The Special Administrators had, on behalf of Instangreen, on 11
May 2000 entered into a conditional MOU with the vendors of LBS
Bina Holdings Sdn Bhd and certain of its subsidiaries/associate
companies with the intention of participating in a restructuring
scheme of Instangreen.

The proposed restructuring scheme will involve capital
reconstruction, exchange of shares and transfer of listing
status of the Company to a new company (Newco), debt
restructuring entailing the settlement of all or part of its
debts via the issuance of new shares, ICULS and redeemable
convertible secured bonds in Newco, acquisition of the LBS Group
by LBS Bina Group Bhd (LBSBG), and disposal of Instangreen's
several subsidiaries to LBSBG. The LBG Group is principally
involved in property development.

On 9 October 2000, the Company conditionally agreed to transfer
its listing status to LBSBG, being the Newco. Instangreen has
also entered into several share sale agreements with LBSBG to
dispose of several subsidiaries to the latter. The proposals are
still subject to the approvals of Danaharta and secured
creditors before submission to the SC.

The Instangreen Group had been providing golf course
consultation and construction services in Malaysia since 1983.


JOHAN HOLDINGS: Defaults Payment On Credit Facilities
-----------------------------------------------------
Johan Holdings Berhad refers to the announcement dated 9 May
2001 released by Aseambanker Malaysia Bhd on behalf of Johan
Holdings Berhad wherein it was announced that the Securities
Commission (SC) on 8 May 2001 approved the extension of time up
to 13 November 2001 for Johan to complete the Proposed Rights
Issue of Shares with Warrants, Proposed Right Issue of ICULS,
Proposed Issue of Replacement Warrants and Proposed New
Employees Share Option Scheme (Proposed Fund Raising Exercise).

As announced previously, one of the conditions imposed by the SC
is the requirement for Johan's debt restructuring scheme in
respect of the Syndicated Term Loan of RM66.73 million to be
finalized and signed with the Syndicated Lenders before Johan
can implement the Proposed Fund Raising Exercise.

Until Johan's debt restructuring scheme with the Syndicated
Lenders is finalized and signed the condition imposed by the SC
cannot be satisfied. The Proposed Fund Raising Exercise includes
a Proposed Rights Issue of Shares with Warrants and Proposed
Rights Issue of ICULS to raise approximately RM175.3 million, to
be utilized as follows:

Part repayment to the Syndicated Lenders and other bank
borrowings 95.0
Additional Working Capital for main subsidiaries of the Group
76.3
Estimated expenses relating to the Proposals 4.0 -- RM175.3
million.

To date, the condition imposed by the SC has not been fulfilled
and as such, the Proposed Fund Raising Exercise cannot be
implemented. Further due to the weak capital market, it will be
difficult for Johan to implement the Proposed Fund Raising
Exercise.

The delay in implementing the Proposed Fund Raising Exercise
(which if completed would have raised net proceeds of RM171.3
million) had adversely affected the ability of Johan and a few
of its subsidiaries to meet with some of their immediate
financial obligations to some of their lenders.

Due to the delay in raising the much needed funds from the
Proposed Fund Raising Exercise, the following credit facilities
of Johan and certain of its subsidiaries are in default:

Johan Holdings Berhad (Johan)

(a) Default in payment of the principal sum of RM66.73 million
and interest of RM5.7 million in respect of its Syndicated Term
Loan of RM66.73 million extended by Syndicated Lenders.

(b) Default in payment of interests amounting to RM3.5 million
on Overdraft and Revolving Credit facilities of a total of RM129
million extended by Bilateral Lenders.

The credit facilities of (a) and (b) above are secured by a
charge in favour of an Agent Bank as security for both the
Syndicated Lenders and Bilateral Lenders over landed properties
at Lot 288, Section 57, Kuala Lumpur and Lot 1115, Mukim
Dengkil, Daerah Sepang, Selangor Darul Ehsan and 34,000,000
shares in George Kent (Malaysia) Berhad.

The implication is that upon default the Agent Bank will be
entitled to enforce the charge over the assets pledged as
security.

Mustika Resort Sdn Bhd (Mustika)

Default in interests payment of RM1.6 million on a Term Loan of
RM10.0 million.

This loan is secured by a charge over Mustika's land at HS(D)
Dgs. 6374 PT. 3005, Mukim Lumut, Daerah Manjung, Perak Darul
Ridzuan.

The implication upon default is that the financial institution
will be entitled to enforce the charge over the land.

Lumut Marine Resort Berhad (Lumut Marine)

Default in principal repayment of RM290,000 in respect of a Term
Loan facility of RM2.7 million. This loan is secured by a charge
over Lumut Marine's land and building on Lot 4182, Jalan Titi
Panjang 32200 Lumut, Perak Darul Ridzuan.

The implication is that upon default the financial institution
will be entitled to enforce the charge over the land and
building.

Prestige Ceramics Sdn Bhd (Prestige)

(a) Default in principal repayment of RM29 million and interests
of RM1,028,787.08 in respect of a Syndicated Term Loan of RM29
million.

This Term Loan is secured by a charge over Prestige's land and
building at Lot 1115, Mukim Dengkil, Daerah Sepang, Selangor
Darul Ehsan and the wall tiles plant and machinery.

(b) Default in principal repayment of trade lines facility of
RM1,683,733 extended on a clean basis.

(c) Default in principal repayment of RM5.0 million and interest
of RM1,014,406.06 in respect of a Term Loan facility of RM20
million.

This Term Loan is secured by a charge over Prestige's floor
tiles plant and machinery.

The implication upon default is respect of (a) and (c) above is
that the financial institution will be entitled to enforce the
charge over the pledged landed property and assets.

Johan Equities Sdn Bhd (Johan Equities)

(a) Default in principal repayment of a Revolving Credit
Facility of RM5.0 million and interest payment of RM78,461.40.

(b) Default in interest payment of RM121,154.40 on a Revolving
Credit Facility of RM5.0 million.

(c) Default in interest payment of RM15,107.68 in respect of a
Revolving Credit Facility of RM600,000.

(d) Default in principal repayment of RM498,000 and interest of
RM13,018.83 in respect of an Overdraft Facility of RM498,000.

All the abovementioned credit facilities in default are secured
by pledge of quoted securities to each of the financial
institutions. The implication upon default is that each of the
financial institution will be entitled to foreclose on the
quoted securities pledged.

None of the bank borrowings of Johan or its subsidiaries listed
above are secured under any debenture, which will empower the
debenture holder to appoint a receiver or receiver and manager
over the property of Johan or its subsidiaries.

Johan is currently in negotiations with the Syndicated Lenders
and Bilateral Lenders of Johan including all lenders of
Prestige, Mustika, Lumut Marine and Johan Equities to
restructure its Group borrowings. To-date none of these
financial institutions has taken any action to enforce the
charge created by Johan and its subsidiaries.

As at date hereof, the Board of Directors is not aware of any
legal action being taken against Johan or its subsidiaries by
its lenders.

In terms of a cross default arising from the default in payment
by Johan and the abovementioned subsidiaries, none of the other
bankers of the Johan Group has declared an event of default in
respect of credit facilities extended to the Johan Group.

Two of Johan's overseas subsidiaries' bank borrowings are also
in default viz:

Johan International Limited (JOIL)

Default in principal repayment of US$150,000 and interest
payment of US$29,009 in respect of a Term Loan of US$3.9 million
extended on a clean basis.

Abacus Pacific N.V. (APNV)

(a) Default in principal repayment of US$10.0 million and
interest payment of US$1,277,464 in respect of a Revolving
Credit Facility of US$10.0 million extended by a financial
institution on a clean basis.

(b) Default in principal repayment of US$693,710 and interest
payment of US$402,960 in respect of a Term Loan of USD7.6
million extended by a financial institution. 5,000,000 shares of
S$0.20 each in Jacks International Limited have been pledged as
security.

(c) Default in principal repayment of US$550,000 and interest
payment of US$226,149.65 in respect of a Revolving Credit
Facility of US$3 million extended by a financial institution.
5,000,000 shares of S$0.20 each in Jacks International Limited
have been pledged as security.

The default in payments arose from the deficiency in funds from
operations of the business of these overseas subsidiaries. Both
JOIL and APNV are currently in negotiations with their lenders
to restructure the loans and the management is not aware of any
legal action being taken by any of their lenders against these
two subsidiaries.

The implication upon default is that the financial institution
in (b) and (c) above will be entitled to foreclose on the quoted
securities pledged as security. To-date none of these financial
institutions has taken any action to foreclose on the quoted
securities pledged.


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


NATIONAL BANK: Gov't, Tan To Close Deal Re Rehab Plan
-----------------------------------------------------
The government and Philippine National Bank (PNB) majority
shareholder Lucio Tan are nearing to an agreement regarding the
rehabilitation plan for the beleaguered bank, The Philippine
Star reported yesterday.

A source close to the negotiations said both parties are
expected to reach an agreement by July or August on the rehab
plan, which will include the conversion of about P5 billion of
the P25-billion emergency loan to PNB from Philippine Deposit
Insurance Corporation (PDIC) and Central Bank into equity.

Apart from that, the government has proposed that a part of the
loan would be used to offset the government's non-performing
loans from the bank, while PDIC will assume the loan exposure of
the Central Bank, and issue a promissory note to pay the loan
from the latter, the report says.

The loan will then be included in PNB's debt restructuring
program.


NATIONAL POWER: Bridge Financing Planned To Stem Losses
-------------------------------------------------------
The National Power Corporation (Napocor) is drawing up schemes
to bridge finance future losses resulting from the 30 centavos
per kilowatt hour (kWh) mandatory rate reduction (MRR), which is
to be implemented in July. The rate reduction is a result of the
Electric Power Industry Reform Act (EPIRA), The Philippine Star
reported Friday.

However, Napocor documents did not provide the sum the state-
owned utility firm plans to utilize in the bridge financing.

Referring to the rate reduction under the power reform act,
Napocor President Jesus Alcordo was quoted as saying, "We will
definitely implement it by the July 26 billing period on the
distribution side. It would probably hit the consumers by August
depending on the billing cycle of the distributors."

Napocor expects losses of up to P3 billion due to the rate
reduction.


RFM CORP: Pepsico, San Miguel Battling For Cosmos
-------------------------------------------------
According to industry sources, American firm PepsiCo Inc, and
domestic beverage giant San Miguel/Coca Cola are battling for a
controlling stake in Cosmos Bottling Corporation, a soft drink
unit of cash-strapped RFM Corporation, The Philippine Daily
Inquirer reported Friday.

Negotiations are underway between RFM and PepsiCo for a
strategic partnership in Cosmos, although sources said PepsiCo
might come in as a minority stakeholder in the profitable
softdrink unit. San Miguel/Coca Cola, on the other hand, would
want nothing less than a majority stake in Cosmos.

Although RFM would still like to maintain its control of the
unit, it remained bent on divesting a fraction of its 84.52
percent stake.


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S I N G A P O R E
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ASIA PULP: To Carry Out Cost-Cutting Schemes
--------------------------------------------
As it carries out asset disposal and debt restructuring
involving US$13.4 billion, Asia Pulp & Paper Company (APP) is
implementing its cost reduction measures as a means to improve
its operating efficiency, The Asian Wall Street Journal reported
Friday.

APP is undertaking preliminary discussions with prospective
buyers for the sale of some of its units in China and Indonesia.


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


ADVANCE AGRO:  Workout Talks With Bondholders Ongoing
-----------------------------------------------------
Advance Agro Public Company Limited (AA) is in negotiations with
the holders of its convertible debentures for the restructuring
of its debts amounting to US$28.65 million, The Nation reported
last week.

The plan to restructure came after the pulp and paper maker
failed to repay its debts by its deadline last Monday.


DATAMAT PUBLIC: Closing Of Shares Register Set
----------------------------------------------
The ordinary general meeting of Datamat Public Company Limited
shareholders #31, held on 29 April 1999, approved to reduce the
capital amount 40,227,913 shares out of 53,637,218 shares with
balance at 13,409,305 shares of Bt10 each.

Thus, the Board of Director's Meeting No. 4/2544 held on the 18
June 2001 resolved the following:

1. That the date for closing the company shares registration for
reduction the capital will be on the 3rd of July 2001 at 12.00
a.m.

2. Any fraction from capital reduction more than point five is
to be deemed as one share, after that the difference of share
from 13,409,305 shares to be borne by Mr. Manoo Ordeedolchest,
the director.


EASTERN WIRE: Court OKs Rehab Plan, Appoints Administrator
----------------------------------------------------------
The Central Bankruptcy Court considered the Rehabilitation Plan
of Eastern Wire Public Company Limited on June 21, 2001. The
Planner, Phiraphan Phalasuk, wished to announce the following:

1. The Central Bankruptcy Court ordered to approve the
Rehabilitation Plan and appointed Mr Phiraphan Phalasuk as the
Plan Administrator.

2. The Creditor Committee consists of three creditors as the
following:

   i) Standard Chartered & Nakornthon Bank Public Company
Limited

   ii) Bangkok Metropolitan Bank Public Company Limited   and

   iii) EGGA Holding Company Limited

The Plan Administrator submits the Rehabilitation Plan Summary
of Eastern Wire Public Company Limited. The Company will
implement the Rehabilitation Plan after the Court approves the
Reorganization Plan.

The Rehabilitation Plan Summary Of
Eastern Wire Public Company Limited

Objectives

To fairly repay the debts to all creditors as much as possible

To develop and improve management, efficiency and competitive of
EWC

To keep employment status of EWC

Plan Administrator
Mr.Phiraphan   Phalasuk
555  Rasa Tower, Room No.1201-1203, Phaholyothin Road,
Chatujak, Bangkok  10900

Time Period for Implementing the Business Reorganization Plan:
Within 365 days after the court approves the Business
Reorganization Plan

Reason of Insolvency Service Debt
   i) Seriously the lack of liquidity

   ii) Highly the interest burden

   iii) Economic recession and demand of product decreasing

Financial Status of EWC as of August 11, 2000

   Total assets: Bt665,621,315.26

   Total liabilities: Bt1,874,608,183.55

   Total shareholders equity: Bt(1,208,986,868.29)

Debt Classification

First creditor: secured creditor (more than 15 percent of total
debt)
Bt324.40 million

Second creditor: secured creditor (less than 15 percent of total
debt)
Bt207.66 million

Third creditor: unsecured creditors
Bt988.26 million

Fourth creditor: unsecured creditors (guarantor)
Bt294.60 million

Total debt: Bt1,814.92 million

Allocation of Scheme Debt

1. EWC will sell the pledged equipment of the first creditor and
the second creditor. Then EWC will allocate the principal of
debt amount Bt28 million for the first creditor and the second
creditor within 30 days after the court approves the Business
Reorganization Plan.

2. EWC will allocate the principal of debt amount Bt110 million
for all creditors within 35 days after the court approves the
Business Reorganization Plan as the following:

   2.1 Bt38 million for the first creditor and the second
creditor

   2.2 Bt72 million for the third creditor and the fourth
creditor

3. EWC will sell the predged land, building and equipment of the
first creditor and the second creditor. Then EWC will allocate
the principal of debt amount Bt60 million for all creditors
within 360 days after the court approves the Business
Reorganization Plan as the following:

   3.1 Bt22 million for the first creditor and the second
creditor

   3.2 Bt38 million for the third creditor and the fourth
creditor


4. EWC will borrow Bt8 million from EGGA Holding Company
Limited.  Then
EWC will allocate the principle of debt amount Bt8 million for
the first creditor, the second creditor, the third creditor and
the fourth creditor within 365 days after the court approves the
Business Reorganization Plan.

5. Then all creditors had allocated the principal of debt as the
following allocation of scheme debt. The first creditor, the
second creditor, the third creditor and the fourth creditor will
discharge from the rest of principal debt after (exception the
amount Bt8 million as of the 4th above) all creditors had
already received the principal of debt as the following
allocation of scheme debt.

Future Business Plan

After the Court approves the Business Reorganization Plan, EWC
will operate the core business by Rayong Wire Industries Company
Limited (RWI) which EWC holds 99.99 percent of issued and paid-
up share capital.

   Main product of RWI Plant:

   1. PCW: Prestressed Concrete Wire used in heavy construction

   2. TBW: Tyre Bead Wire used in all types of tire product

   3. W.W.: Welding Wire used in various industries

RWI had finished the debt reorganization plan as of March 27,
2000.

The Creditor Committee

The creditor committee will supervise EWC to achieve the
Business Reorganization Plan.

The creditor committee consist of three creditors as the
following:

   i) Standard Chartered & Nakornthon Bank Public Company
Limited

   ii) Bangkok Metropolitan Bank Public Company Limited

   iii) EGGA Holding Company Limited


THAI PETROCHEM: IFC Approves Loan
---------------------------------
The International Finance Corporation (IFC), World Bank's
private investment arm, has approved a loan to Thai
Petrochemical Industry (TPI) as part of a package worth US$100
million drawn up by Bangkok Bank, Kreditanstalt Fuer
Wiederaufbau, and other creditors, The Business Day Thailand
reported Friday.

The IFC loan is intended to enable the refiner to raise its
production capacity to 125,000 barrels a day from 65,000
barrels, which is expected to bolster the company's capacity to
repay by 2004 its overdue loans of $1.2 billion, the report
says.

IFC's Thai office head Timothy Ryan was quoted as saying, "It's
a bankable transaction. Time for deliberations process [among
lenders] is short. The sooner TPI gets the working capital to
boost capacity, the better."


TPI POLENE: Needs Capital-Raising Deadline Extension
----------------------------------------------------
TPI Polene Public Company Limited is calling for an extension of
the June 29 deadline set by the creditors for the company's
plans to raise capital, AFX reports, citing TPI Polene Chief
Executive Prachai Leophairatana.

However, according to a The Nation report, the creditors are set
to reject any delay and will call an "event of default" should
the company fail to make the deadline.

Creditors will see that the company is declared bankrupt if they
find the company's current restructuring plan is not plausible.


TUNTEX (THAILAND): Board OKs Date, Agenda Of EGM
------------------------------------------------
The Board of Directors of Tuntex (Thailand) Public Company
Limited at its meeting No.6/2544 held on June 23, 2001 has
resolved as follows:

1. To approve and appoint Mr Khanit Khongthanarat and Mr C.T.
Chang as new directors of the Company which shall be submitted
to shareholders meeting for approval.

2. To approve the date and agenda of the Extraordinary General
Meeting of Shareholders No.1/2001 which will be held on July 27,
2001 at 9.30 a.m., at Conference Room, Floor 8, BB Building,
No.54, Sukhumvit Road, Klongtoey Nua, Wattana, Bangkok. The
agendas are as follows:

   1) To consider and approve the minutes of the previous
shareholders meeting.

   2) To consider and appoint Mr.Khanit Khongthanarat and
Mr.C.T.Chang as new directors of the Company.

   3) Other business. (if any)

3. To approve the date and time of closing share registration
for shareholders meeting from July 10, 2001 at 12.00 noon until
the end of the meeting.


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

Troubled Company Reporter -- Asia Pacific is a daily
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Inc., Trenton, NJ USA, and Beard Group, Inc., Washington, DC
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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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