---

       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, July 19, 2001, Vol. 4, No. 140


                         Headlines



A U S T R A L I A

BRIDGEDFS LIMITED: NM Rothschild Acquires 8.11% Stake
MORTGAGES NORTH: Court Appoints Liquidator
ONE.TEL LIMITED: Administrators Express Doubt About Royalties


C H I N A   &   H O N G  K O N G

GLOBAL FOOD: Posts Net Loss Of HK$78.1M
HON KWOK: Suffers HK$383.3M In Operating Loss
KAO SHEK: Petition To Wind Up On Docket
KIN DON: Exchange Reprimands Directors
NEXT MEDIA: Poised To Suffer Further Losses
NEXT MEDIA: Unit Renews Deal With Paramount
PACIFIC CENTURY: Bond Issue Expected To Offer Higher Yield
PACIFIC CENTURY: Put Warrants Dealing To Cease On Thursday
PACIFIC CENTURY: Seeking Options To Refinance Loans
YEE HEUNG: Hearing of Winding Up Petition Set


I N D O N E S I A

ASTRA INTERNATIONAL: Pramindo Sale Ongoing
BANK INTERNASIONAL: IBRA Dissolves Board Of Directors


J A P A N

DAIEI INC: Unit Sells Takashimaya Stake To Cut Debts
NATIONAL OIL: Expects Increased Losses
MITSUBISHI ESTATE: S&P Revises Outlook To `Stable'


K O R E A

DAEWOO ELECTRONICS: To Dispatch Sale Proposals In July
HAITAI CONFECTIONERY: Banks To Extend W270B In Loans
HYUNDAI ENGINEERING: Creditors Up Loan-Loss Reserves For Group
KOREA LIFE: Receiving W800B In Public Funds From KDIC


M A L A Y S I A

LAND & GENERAL: Court To Hear Standstill Extension Application
LONG HUAT: Clarifies Petitioner's Claim
MAN YAU: Court Grants Extension To RO
MELCON ENGINEERING: Court Strikes Petition With Cost
PILECON PTE: Winding Up Petition Served
SAMANDA MARKETING: Faces Winding Up Petition
SAMANDA MARKETING: Losses Not Expected, WTK Says
UNITED ENGINEERS: Seeks Trading Suspension


P H I L I P P I N E S

NATIONAL CONSTRUCTION: Explains Contracts Recently Signed
NATIONAL STEEL: Allengoal, Glencore Join Forces
RFM CORP: Announcement Regarding Cosmos Buyer Expected


S I N G A P O R E

ASIA FOOD: Market Affects Profitability, Auditors Say
ASIA PULP: Net Losses Expected For Year Ended December 2000
NATSTEEL LIMITED: Acquires Stake In Lee Metal
PANPAC MEDIA.COM: Cites Reasons For Lower Turnover


T H A I L A N D

SRITHAI SUPERWARE: Clarifies Report Submission
THAI PATHANA: Petition For Reorg Filed With Civil Court
THANULUX PUBLIC: Takes Over Unit's Assets

     -  -  -  -  -  -  -  -

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


BRIDGEDFS LIMITED: NM Rothschild Acquires 8.11% Stake
-----------------------------------------------------
NM Rothschild Australia Holdings Pty Ltd became a substantial
shareholder in BridgeDFS Limited, the Australian subsidiary of
Bridge Information Systems, on 4 July 2001 with a relevant
interest in the issued share capital of 8,106,684 ordinary
shares (8.11 percent).


MORTGAGES NORTH: Court Appoints Liquidator
------------------------------------------
The Australian Securities and Investments Commission (ASIC)
Tuesday announced that Ian Jessup of Jessup & Partners in
Townsville has been appointed liquidator to the solicitors'
contributory mortgage scheme operated by Cairns solicitor Pamela
Dickenson and Mortgages North Pty Ltd.

The appointment was made with the consent of Pamela Dickenson,
the director of Mortgages North.

The orders appointing Jessup, which were made in the Supreme
Court in Brisbane, provide that the liquidator will:

   * be appointed trustee of trusts in place of Mortgages North
Pty Ltd;

   * provide a notice to each investor within 21 days advising
of his appointment;

   * provide regular newsletters to ASIC and investors detailing
actions taken and anticipated in the winding up; and

   * furnish reports to ASIC in the event that it appears that
there has been any contravention or misconduct in relation to
the operation of the scheme.

The action follows ASIC's revocation on 2 July 2001 of the
dealer's license of Mortgages North (Qld) Limited, the former
responsible entity of a contributory mortgage scheme operated in
Cairns, known as the Mortgages North Investment Fund.

In April 2001, GPS Management Limited was appointed as temporary
responsible entity to that fund.

Darren McShane, ASIC National Director Financial Services
Regulation acknowledged the co-operation of Ms Dickenson with
ASIC.

"In obtaining Court appointment of a liquidator to the runout
scheme, ASIC has facilitated a prompt and orderly winding up of
affairs. We will continue to monitor the situation to ensure
that the matter is fully resolved in the interests of
investors," McShane said.


ONE.TEL LIMITED: Administrators Express Doubt About Royalties
-------------------------------------------------------------
The administrators of collapsed One.Tel Limited are doubtful
about the validity of royalty payments amounting to millions of
dollars given to companies linked to some directors, including
Jodee Rich, Rodney Adler, and James Packer, The Age reported
Wednesday.

According to the report, the royalties payments were made after
the company acquired in 1998 the directors' privately owned
Internet service provider One.Net and phone card supplier
One.Card.

The two firms were bought for $16.9 million, the report says,
citing administrators Steve Sherman and Peter Walker of Ferrier
Hodgson. This is on top of five-year royalty payments equivalent
to 5 percent of the gross revenue.

One.Tel has made payments amounting to $5.8 million in
royalties, in which, the administrators suspect, the revenue
from international and Australian operations were also factored
in, the report says.


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


GLOBAL FOOD: Posts Net Loss Of HK$78.1M
---------------------------------------
Global Food Culture Group Limited (the Company) sustained net
losses of HK$78.099 million for the year ended 31 March 2001,
down from HK$110.937 million in the preceding year.

The decrease in loss was mainly attributable to the improvement
of results of G. Sushi operation and the decrease in written off
and impairment loss on property, plant and equipment.

The turnover of the Group slightly decreased by 9 percent to
approximately HK$252 million as compared with HK$277 million for
the previous year as some unprofitable shops were closed down
during the year.

Review Of Operations

G. Sushi

G. Sushi, a sushi bar restaurant chain, managed to reduce
operating loss by 37 percent for this financial year. To
minimize loss, six unprofitable shops were closed during the
year. The chain now operates 15 shops at suitable locations.

During the year, the management initiated various measures to
rebuild the image of "G. Sushi" so as to boost the turnover of
operation, implemented tight cost control and introduced more
varieties of food items. To further enhance the image of G.
Sushi and brand awareness, the management also launched some
proactive marketing campaigns and successful joint promotion
with famous business partners such as Bank of China, First
Pacific Bank, Pacific Century Cable & Wirelesss and Park'n Shop.

Sho-Genryoku Sushi

Sho-Genryoku Sushi, the take-away sushi chain outlets of the
Group was closed down in August 2000 because of the keen
competition from retail supermarket chains and undesirable
response from the market.

Gather Food Camp and Katsugyo Japanese Restaurant

Gather Food Camp, a Japanese buffet restaurant of the Group
targeted at the mass market had opened two restaurants in
Causeway Bay and Tsimshatsui in October 1999 and December 1999
respectively. In view of the low pedestrian flow of the
Tsimshatsui restaurant and in anticipation that the business
performance of this shop would not be substantially improved,
the Group closed the Tsimshatsui restaurant in January 2001.

To improve the profitability of Gather Food Camp Causeway Bay
shop, the restaurant was partially transformed to a middle-class
Japanese restaurant. About 40% of the floor area of the
restaurant was utilized to set up Katsugyo Japanese Restaurant
in December 2000. Although the new concept of the Japanese
restaurant was well received by customers, the restaurant as a
whole still recorded a substantial operating loss during the
year.

Suishaya Japanese Restaurant

Suishaya Japanese Restaurant, a high-class Japanese restaurant
operation, continued to make positive contribution to the Group.
The high standard of food and service of this operation helped
to retain a loyal customer base over years and the management
expected that the profitability of this operation would continue
to improve.

Fishermen's Wharf

In December 1999, Fishermen's Wharf Chinese Seafood Restaurant
was re-located to the former Suishaya Japanese Restaurant
Causeway Bay shop which offered the operation a larger premises.
In view of the substantial loss recorded in the year under
review, the management had proceeded to cut operating overhead
and control food cost to minimize the loss.

Global Forever Green Taiwanese Restaurant

Global Forever Green Taiwanese Restaurant was closed down for a
short period during the year for renovation to upgrade its
operating condition. The temporary closure of the restaurant
accompanied with the decrease in the spending power of the
middle and high class customers resulted in an increase in
operating loss for this operation.

Remuneration of Employees

As at 31 March 2001, the Group had 572 permanent employees and
124 part time employees and total staff costs for the year ended
31st March, 2001 was approximately HK$94.9 million. All
permanent employees are under the remuneration policy of fixed
monthly salary with discretionary bonus.

Pursuant to the Company's share option scheme which was adopted
by written resolutions of the shareholders of the Company passed
on 27 August 1997, the Directors of the Company may, at its
discretion, grant options to eligible employees, including
executive directors, of the Company or any of its subsidiaries
to subscribe for shares in the Company at a price not less than
80% of the average of the closing prices of the shares on the
Stock Exchange of Hong Kong Limited (the Stock Exchange) on the
five trading days immediately preceding the date of grant of the
options or the nominal value of the shares, whichever is the
higher.

The maximum number of shares in respect of which options may be
granted under the share option scheme shall not exceed 10
percent of the issued share capital of the Company from time to
time and the maximum number of shares in respect of which
options may be granted to any one employee shall not exceed 25
percent of the maximum number of shares in respect of which
options may be granted under the scheme.

No option has been granted under the scheme since its adoption.

Financial Resources and Capital Structure

The Group currently funds its operations and capital expenditure
mainly through cash from operations, net proceeds from Rights
Issue on 27 November, 2000, bank borrowings and unsecured loan
from the substantial shareholder of the Company.

Save as disclosed above and normal trade creditors and accruals,
the Group had no other borrowings as at 31 March 2001. The Board
expect that, on a long-term basis, the Group's liquidity will be
funded from its operations and, if necessary, additional equity
financing or bank borrowing.

As at 31 March 2001, the Group had net current liabilities of
approximately HK$52.4 million. The current assets comprised bank
balances and cash of approximately HK$8.6 million (which is in
Hong Kong dollars), trade debtors of approximately HK$1.2
million, prepayments and deposits of approximately HK$11 million
and inventories of approximately HK$7.8 million.

The current liabilities mainly comprised trade creditors of
approximately HK$14 million, bills payable of approximately
HK$2.4 million, other creditors and accrued charges of
approximately HK$14.8 million, taxation payable of approximately
HK$0.1 million, bank borrowings of approximately HK$13.3 million
and the loan from a shareholder of approximately HK$36.4
million.

As at the same date, the Group had non-current assets of
approximately HK$112.5 million and non-current liabilities of
HK$18.3 million, consisting of property, plant and equipment and
bank borrowings respectively.

As at 31 March 2001, the Group had outstanding commitment under
operating lease in the following year of approximately HK$32.7
million. Save as disclosed above, the Group had no other
material commitment, including capital commitment.

On 27 November 2000, 595,245,200 new shares of HK$0.10 each were
issued by way of a Rights Issue on the basis of one Rights Issue
for every existing share then held at an issue price of HK$0.128
per share. The net proceeds of the Rights Issue of approximately
HK$73,586,000 were used by the Group to repay bank loans, other
borrowings and the loan from a shareholder and provide general
working capital of the Group.

Prospects

The management would impose tight control over the operating
costs and prudently explore new business opportunities to suit
consumers' ever-changing taste. With the gradual recovery of the
economic conditions of Hong Kong, the management expected an
improvement in the business environment for the food and
beverage industry as well as the performance of the Group in the
coming future. The group will consider cautious expansion of the
G. Sushi operation in the coming future with a view to improving
the performance of the business.


HON KWOK: Suffers HK$383.3M In Operating Loss
---------------------------------------------
Hon Kwok Land Investment Company Limited suffered an operating
loss of HK$383.295 million in the year ended 31 March 2001,
swinging from a profit of HK$22.684 million incurred in the
preceding year. The loss was made on turnover of HK$322.491
million.

The Group also incurred a net loss from ordinary activities
attributable to shareholders amounting to HK$397.101 million, a
reversal from a gain of HK$50.326 million in the previous year.

For the same year, the Group reported an audited consolidated
loss after tax and minority interests of HK$397,101,000. Such
loss was mainly due to provisions for diminution in value of the
development and investment properties held by the Group and its
jointly-controlled entities to the extent of HK$302,354,000 upon
annual revaluation of the Group's portfolio at year end. All
these provisions have been charged to the profit and loss
account in the same year.

Liquidity and financial resources

During the year, the Group disposed part of its long-term
investments. The cash flows derived thereon have largely been
applied to reduce the borrowings of the Group, including the
redemption of the A Bonds on 15 December 2000. Total interest-
bearing debts of the Group reduced from HK$1,913 million as at
31 March, 2000 to HK$1,440 million as at 31 March, 2001.
Approximately 61 percent of the debts were repayable within one
year.

As at 31 March 2001, total cash and bank balances amounted to
HK$149 million. Total committed but undrawn banking facilities
as at the year end was HK$518 million. These facilities can be
utilized by the Group to finance the construction costs of
property development projects or for general working capital
purpose.

The assets of the Group diminished as a result of provisions
made against the property portfolio. As a result, the year-end
gearing ratio measured by the total interest-bearing debts over
the total assets only showed a minor improvement from 51 percent
to 50 percent, despite overall reduction in borrowings.

Funding and treasury policy

The Group adopts a prudent funding and treasury policy. Surplus
funds are primarily maintained in the form of cash deposits with
leading banks. The acquisition and development of properties are
financed partly by internal resources and partly by secured bank
loans. Repayments of bank loans are scheduled to match asset
lives and project completion dates. All borrowings are
denominated in Hong Kong dollars, Renminbi or United States
dollars. Foreign currency exposure is monitored closely by the
management and hedged to the extent desirable.

Pledge of assets

Certain properties of the Group having an aggregate book value
of HK$2,080 million as at 31 March, 2001 were pledged to secure
banking facilities of the Group.

Contingent liabilities

As at 31 March 2001, the Group was contingently liable for
HK$66.5 million (2000: HK$107.5 million) in respect of banking
facilities granted to its jointly-controlled entities. There are
no material changes to the other contingent liabilities of the
Group as disclosed in the last published annual report for the
year ended 31 March 2000.

Employees and remuneration policies

The Group employs over 100 employees in Hong Kong, in other
parts of the People's Republic of China and overseas.
Remuneration is determined by reference to market terms and the
qualifications and experience of the staff concerned. Salaries
are reviewed annually with discretionary bonuses being paid
depending on individual performance.

The Group also provides other benefits including medical cover,
provident fund, personal accident insurance and educational
subsidies to all eligible staff. A share option scheme was
adopted by the Company in September, 1993 to enable the board of
directors to grant share options to selected employees as
incentives.

Corporate Activities

Our venture to develop Internet and technology related
investments started in January, 2000 when we established our
wholly-owned subsidiary, Hon Kwok Technology (Holdings) Limited,
to invest in a website in Beijing for long-term purpose.

The interest in the website was partly realized in May 2000
through the disposal of a 27.9 percent interest in PRC Youth
Holdings Limited to a strategic partner. As a result of the
protracted downturn of the global internet industry, your Group
ceased and disposed of its entire internet business and related
investments in Hong Kong, Beijing and Shenzhen at the end of the
financial year under review.

Subsequent to the year end, the remaining investment in
marketable securities received from the disposal of the 27.9
percent interest in PRC Youth Holdings Limited were fully
realized into cash through open market sales. Despite these, I
am pleased to report that your Group still maintained a net
profit of HK$108,459,000 from the disposals of technology
investments during the year.

The sale of the Group's investment interest in Adams Parking
(International) Limited, Adams Secuforce (International) Limited
and Access Control Systems Limited through its 50 percent equity
in Zeson Management Limited on 26 June 2000 was duly completed
on the same day.

Redemption of Convertible Bonds

As reported to you in my Interim Report for the period ended 30
September 2000, your Group has fully redeemed the 7-year 4.875
percent convertible guaranteed bonds upon maturity on 15
December 2000. In order to honor our obligations to fully redeem
in time another 5-year convertible guaranteed bonds on 5 July
2001, your Group has issued and completed a private placement of
new convertible guaranteed bonds on 18 April 2001 to raise a
total of HK$300 million which was followed by another fund
raising arrangement on 11 June 2001 to raise HK$150 million. All
outstanding convertible guaranteed bonds issued in July, 1996
were fully redeemed upon their maturity on 5 July 2001.

Review of Operations

Disposal of Properties

Formal agreement for sale of the Group's investment property
known as Hon Kwok Causeway Bay Tower entered into on 26 April
2000 for a cash consideration of HK$198,000,000 was completed on
26 May 2000.

Sale of residential flats at Shun Cheong Building, 20-34 Hau Wo
Street, Kennedy Town, Hong Kong has been very encouraging. Since
the issue of the occupation permit on 5 June 2001, 89 percent of
the flats were sold up to the date of this announcement.

A 50/50 joint venture development project named Le Village at 49
Village Road, Happy Valley, Hong Kong is also under pre-sale.
Approximately 40 percent of the residential flats have been pre-
sold and construction of the entire building is expected to be
completed early next year. During the year under review, the
Group continued to sell the remaining units of the following
completed development projects:

Kam Fung Court  19 Wo Tik Street, Tsuen Wan, New Territories
Kensington Plaza  98 Parkes Street, Jordan, Kowloon
Kent Place   8 Yen Chow Street, Shum Shui Po, Kowloon
Kentwood Place  21 San Shing Avenue, Sheung Shui, New
Territories
Regent on the Hill  183 Hammer Hill Road, Diamond Hill,
Kowloon

Progress of Development Projects

Superstructure construction for the project at 44 Jardine's
Crescent and 47 Jardine's Bazaar, Causeway Bay, Hong Kong, known
as The Grandeur/Grandeur Place has been progressed up to the
28th floor. The project is expected to be completed by mid 2002
and will be launched for pre-sale in the coming months. Premium
appeal procedure for our redevelopment project at 97 Po Kong
Village Road, Diamond Hill, Kowloon has been slow and the
revised premium assessment is still pending from the government.

Investment Properties

Close to full occupancy has recently been achieved for your
Group's fully furnished service apartment, known as The
Bauhinia, at the 5th to 18th floors, 119-121 Connaught Road
Central and 237-241 Des Voeux Road Central, Hong Kong while
Honwell Commercial Centre at the podium floors is fully let.
Occupancy for Hon Kwok Jordan Centre , a commercial/office
building at 5-7A Hillwood Road, Tsim Sha Tsui, Kowloon, remains
at a very high level.

Recurrent rental income from these investment properties has
been satisfactory, especially during the period when the
prevailing interest rate is relatively low. Rental performance
of Plaza Ampang at Kuala Lumpur, Malaysia has been stable.

PRC Properties

Occupation permit for Phase One of your Group's development
project at Fu Tian District, Shenzhen, known as Millennium
Oasis, comprising two 25-storey buildings of 184 residential
units was issued on 29 June 2001. Up to the date of this
announcement, all 184 units have been sold and construction work
for Phase Two, comprising seven high-rise buildings of a total
of 547 residential units, is in progress.

It is expected that pre-sale of units in Phase Two will be
launched by September, 2001 while the expected completion date
of the entire project is scheduled in July, 2002. The three
other development projects situated at the Lu Wu District of
Shenzhen (known as Hon Kwok Lu Wu Plaza, the Da Li District of
Nanhai and the Liwan District of Guangzhou, having a total gross
floor area of approximately 5,000,000 square feet, will be held
as landbank of the Group for development in the coming years.

Overseas Properties

Application to change the zoning and land use of our development
site at Bay Street and Dundas Street West, Toronto, Ontario,
Canada has been approved by the City Council on 4 July 2000 and
your Group is in the final stage of proceeding with the
development of the site into a complex with 629,578 square feet
and 84,950 square feet for residential and commercial use
respectively.

Overview

Hong Kong is still facing a prolonged period of slow economy and
weakness in the property market is expected to persist for quite
some time. Although interest rate has been reduced by a total of
2.75 percent since January this year, with further downward
adjustments expected in the coming months coupled with various
incentives provided by developers on top of the much lowered
home prices, buying activities remain subdued while prices
continue to be sluggish.

Consumer sentiment, though slightly stabilized, remains fragile
in view of the increasing number of negative asset mortgage
loans for existing homeowners. Nowadays, property prices tend to
be indifferent to lower interest rates. So long as there is no
significant improvement in the number of homeowners with
negative asset values and the high unemployment rate, the market
is expected to linger at the current level despite favorable
interest rate.

The property markets in Shenzhen, Guangzhou and the Pearl River
Delta remain active, with prices improved satisfactorily as
compared to the property market in Hong Kong. With the continued
economic growth in China and the expected increase in investment
opportunities as a result of the forthcoming accession of China
to WTO and the hosting of the 2008 Olympics in Beijing, your
Directors are confident in the development and growth of the
Group's existing property portfolio in China and are looking for
further investment opportunities when arise.


KAO SHEK: Petition To Wind Up On Docket
---------------------------------------
The petition to wind up Kao Shek Toys Manufacturers Limited is
scheduled for hearing before the High Court of Hong Kong on
August 15, 2001 at 9:30 am. The petition was filed with the
court on June 7, 2001 by Khan Zawar of Flat D, 9/F., Siu Fung
Building, 9-17 Tin Lok Lane, Wanchai, Hong Kong.


KIN DON: Exchange Reprimands Directors
--------------------------------------
The Hong Kong Stock Exchange Monday censured Kin Don Holdings
Limited and four of its directors, citing the delayed dispatch
of the company's annual report for the year ended November 30,
1999 and the interim results for the half-year ended May 31,
2000, Hong Kong IMail reported Tuesday.

The directors were executive directors Au Tung-chi and Wei
Cheng-wen and two former executive directors Ou Tong-de and
Philip Lam Kwing-sun, the report says.

The delay, the report says, violated the existing rules of the
Exchange, which require listed firms to dispatch annual results
and reports within five months after the end of the financial
year. The rules also call for the publication of the interim
results of the listed companies not later than three months
after the said period ends.

In May, a Hong Kong court dismissed a winding up petition
against Kin Don Holdings served by Stone Church LLC, after both
parties signed a compromise agreement, which would call for the
issuance of 271.47 million new shares by Kin Don at $0.1155 to
Stone Church. The balance of debt worth $3.02 million Kin Don
would owe to Stone Church would be payable in cash.

Stone Church claimed against Kin Don an amount of US$4.42
million.


NEXT MEDIA: Poised To Suffer Further Losses
-------------------------------------------
Next Media Limited, an Internet and magazine publisher, is
likely to go deeper into the red when it reports full-year
results today, analysts said.  An analyst at a local brokerage
forecast a net loss of $68 million for the year ending March 31,
but added that number could be too optimistic.

One "should brace for the worst" because the firm has been
largely reserved about its situation, he said.

Next Media operates a handful of websites, including atnext.com
and appledaily.com, and Easyfinder magazine. It also has a
printing and publishing arm.

The firm has already reported net loss of $43.4 million for the
six months to September 30, 2000, due to significant losses
sustained by its Internet businesses.  It also reported a loss
of $78.5 million in the year to March 31, 2000.

Another analyst at a local brokerage said he expects Next Media
to continue making provisions for its online failures.  Last
year the company laid off 200 staff at its online ventures.

Next Media has been repositioning itself, shifting its focus to
magazine and newspaper publishing, after the dotcom euphoria
faded last year. The company's shares have fallen more than 90
percent from their peak of $5.45 in February 2000.


NEXT MEDIA: Unit Renews Deal With Paramount
-------------------------------------------
Next Media Limited announces that replacement printing
agreements (the Replacement Printing Agreements) were entered
into on July 16, 2001 between Paramount Printing Company Limited
and Next Media (Holdings) Limited and Apple Daily Limited.

Replacement Printing Agreements dated July 16, 2001

Parties: Paramount Printing Company Limited, a wholly-owned
subsidiary of the Company (the Contractor);

  Apple Daily Limited, indirectly owned as to
approximately 92 percent by Mr. Lai Chee Ying, Jimmy, the
Chairman, an executive director and the substantial shareholder
of the Company, and Next Media (Holdings) Limited, indirectly
owned as to approximately 83 percent by Mr. Lai (together, the
Customers)

Services to be provided
  by the Contractor: Printing of the Documents

Documents to be printed: Means pamphlets, newsletters, dairy,
booklets, leaflets, books, catalogue, supplements or such other
printed matters as the Customers may require from time to time

Term: 1 year from April 1, 2001

Expected aggregate charges
  for the contract period: Not exceeding HK$8,000,000

Payment Term: Within 90 days of invoice date

Connected Transactions

The Contractor entered into printing agreements dated September
22, 2000 (Original Printing Agreements) with the Customers for
the provision of the Services for a term of one year from April
1, 2000 which expired on April 1, 2001. Accordingly, the
Replacement Printing Agreements have been entered into with all
the terms being the same as those of the Original Printing
Agreements except that the charges for the Services to be
provided were made with reference to prevailing market charges
for similar services.

The charges received by the Contractor for the Services provided
for the period from April 1, 2001 to June 30, 2001 was
approximately HK$200,000, representing approximately 0.3 percent
of the Company's latest net tangible assets value (as disclosed
in the Company's 2000/2001 interim results and taking into
account the loss of HK$38.4 million as a result of the
termination of the Shareholders' Agreement in relation to Igloo
Finance Ltd. as announced by the Company on December 18, 2000).

As the Contractor has provided printing services to the
Customers since the expiry of the Original Printing Agreements
on April 1, 2001, the term of the Replacement Printing
Agreements commenced with effect from April 1, 2001.

The Replacement Printing Agreements were negotiated and entered
into on an arm's length basis and were based on normal
commercial terms. The charges payable to the Contractor under
the Replacement Printing Agreements were arrived at by reference
to the prevailing market charges for similar services.

The directors have also taken into account the size of the
printing jobs and the lead time required for the printing jobs
when the Replacement Printing Agreements were entered into.

The transactions contemplated under the Replacement Printing
Agreements constitute connected transactions for the Company and
require disclosure under Rule 14.25(1) of the Rules Governing
the Listing of Securities on The Stock Exchange of Hong Kong
Limited based on the expected aggregate charges for the term of
the agreements of HK$8,000,000.

In the event that during the course of the one year term
starting April 1, 2001, the aggregate consideration payable by
the Customers to the Contractor exceeds HK$10,000,000, the
relevant provisions under Chapter 14 of the Listing Rules will
be strictly complied with.

Reasons and benefit of the Transactions

Given that printing is a principal business of the Company and
its subsidiaries (the Group) and the printing charges which the
Contractor can charge the Customers under the Replacement
Printing Agreements are not less favorable than it charges
independent third parties as at the date of the Replacement
Printing Agreements and having considered the size of the
printing jobs and the lead time required for the printing jobs,
the directors of the Company (including independent non-
executive directors) are of the view that the Replacement
Printing Agreements are fair and reasonable so far as the
shareholders of the Company are concerned.

General

The Group is engaged in the printing and publication of
magazines and operation of Websites.

Further details of the transactions will be disclosed in the
next annual report of the Company.


PACIFIC CENTURY: Bond Issue Expected To Offer Higher Yield
----------------------------------------------------------
The US$2.5-billion bond issue of Pacific Century Cyberworks
Limited (PCCW) is expected to offer higher yields than other
corporate bonds, as a way to attract investors that cast doubt
on the company's fate, Hong Kong IMail reports yesterday.

"Investors are likely to demand a substantial yield premium on
PCCW-HKT's bonds over the rating benchmarks, given their
relative cautious sentiment towards the PCCW group," Eden Wong,
a corporate debt analyst at ING Barings, told IMail. Wong also
expected that the bond would be traded at 320 basis points over
comparable US Treasuries.

The company and bond roadshow organizer Morgan Stanley are
currently in the US to promote the bond to investors.

According to the report, the said bond issue is expected to be
completed within the month. Proceeds of which will be used to
refinance a part of the company's syndicated loans amounting to
US$4.7 billion.


PACIFIC CENTURY: Put Warrants Dealing To Cease On Thursday
----------------------------------------------------------
Pacific Century Cyberworks Limited announces that the dealings
in the 2001 European Style (Cash Settled) Put Warrants relating
to existing issued ordinary shares of HK$0.05 each of Pacific
Century CyberWorks Limited issued by KBC Financial Products
International Ltd. (stock code: 2217) will cease after the close
of business on Thursday, 19 July 2001. Listing of which will be
withdrawn after the close of business on Wednesday, 25 July
2001.


PACIFIC CENTURY: Seeking Options To Refinance Loans
---------------------------------------------------
Pacific Century CyberWorks Limited (the "Company") announces
that Moody's Investors Service and Standard & Poor's have
already assigned a senior unsecured issuer rating of "Baa1" and
"BBB" respectively to PCCW-HKT Telephone Limited ("PCCW-HKT
Telephone"), an indirect wholly-owned subsidiary of the Company.

In light of these investment grade ratings and the current low
interest rate environment, the Company is considering certain
options to partially refinance PCCW-HKT Telephone's existing
syndicated loan facilities.

However, no firm decision has yet been taken to refinance such
facilities and investors should exercise caution when dealing in
the securities of the Company.

Further announcements will be made if and when a firm decision
is made regarding refinancing.


YEE HEUNG: Hearing of Winding Up Petition Set
---------------------------------------------
The petition to wind up Yee Heung Yuen Food Factory (Hong Kong)
Limited is scheduled to be heard before the High Court of Hong
Kong on August 7, 2001 at 9:30  am. The petition was filed with
the court on May 31, 2001 by The China and South Sea Bank,
Limited of 136 Des Voeux Road Central, Hong Kong.


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


ASTRA INTERNATIONAL: Pramindo Sale Ongoing
------------------------------------------
PT Astra International's scheme to sell its shares in PT
Pramindo Ikat Nusantara is still ongoing and has inadequate
progress to justify a public announcement, AFX-Asia reported
yesterday citing the company spokesperson Aminuddin.

The company is in talks with Telkom, a joint operating scheme
partner of Pramindo Ikat, and expects to reach a conclusion as
soon as possible yet avoiding "a fire sale", Aminuddin added.

However, he declined to comment on the value of the planned
stake sale to Telkom nor the target date of the divestment of
its shares in Pramindo.

In an internal memo obtained by AFX-Asia, an analyst with a
foreign brokerage values Pramindo Ikat at Rp2.8 trillion. He
said since the company owns a 35 percent stake, "We expect Astra
to receive US102 million from the sale."

Proceeds of the asset sales would be used to repay debts. The
company is also divesting non-core assets to repay its debts.


BANK INTERNASIONAL: IBRA Dissolves Board Of Directors
-----------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) dissolved the
board of directors of the troubled Bank Internasional Indonesia
(BII) and organized a group to oversee the bank's daily
operations, Asia Pulse reported Tuesday.

Cholil Hasan, IBRA's coordinator of BII affairs said that the
team would assist IBRA in keeping the bank operational. It also
makes preparations for the bank's acquisition by state-run Bank
Mandiri, said Cholil Hasan, IBRA's coordinator of BII affairs.

Bank Indonesia transferred BII to IBRA as its measure to save
the bank from collapse caused by its majority stakeholder, Sinar
Mas Group. Sinar Mas Group has an outstanding debt of US$1.3
billion. It has defaulted US$64 million in interest on its
debts, which was due on June 30.

IBRA plans to inject "recycled bonds" into the bank to replace
the Sinar Mas Group debts.


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


DAIEI INC: Unit Sells Takashimaya Stake To Cut Debts
----------------------------------------------------
Printemps Ginza Company, a subsidiary of ailing retailer Daiei
Inc., has completely disposed of its stake in Takashimaya
Company for cash consideration of Y10.8 billion, The Asian Wall
Street Journal reported Wednesday.

The proceeds from the sale will be used to reduce the interest-
bearing debt of the Daiei Group totaling Y2.56 trillion, and to
ease the company's financial structure.

The Daiei unit sold 12.069 million shares, which comprised 3.9
percent stake in the entire shares of the department store
operator.


NATIONAL OIL: Expects Increased Losses
--------------------------------------
Debt-laden Japan National Oil Corporation (JNOC) will see an
increase in the company's losses by a large margin, following
the filing of United Petroleum Development Corporation (UPD) for
court protection and rehabilitation under the Civil
Rehabilitation Law, Yomiuri Shimbun reported Wednesday.

JNOC holds a 48 percent stake in UPD.

According to the report, the expected losses of JNOC are already
listed as a potential loss on the company's books.

Meanwhile, other firms, including Japan Oil Development Company
and Mubarraz Oil Company, which are under JNOC's umbrella, may
also seek court protection, following UPD's action.


MITSUBISHI ESTATE: S&P Revises Outlook To `Stable'
-------------------------------------------------
Standard & Poor's Tuesday revised its outlook on the triple-`B'-
plus long-term credit rating on Mitsubishi Estate Co. Ltd. to
stable from negative. At the same time, the long-term rating and
`A-2' short-term rating on the company were affirmed (see list).

The revised outlook reflects the company's improved prospects
for earnings stability, backed by the earnings contribution from
its Marunouchi redevelopment project.

Despite falling asset values and weak demand in Japan's property
sector, Mitsubishi Estates' core leasing business is expected to
generate stable cash flow in coming years. The company's leasing
property portfolio is expected to become more competitive as a
result of the Marunouchi redevelopment project, which began in
1999.

Under the project, Mitsubishi Estate is planning to rebuild at
least six buildings in the Marunouchi business district, one of
the most prime office locations in Tokyo, over the next seven to
eight years. The company currently owns about 45% of total
office space in the district.

The first building up for redevelopment under the project is the
37-story Marunouchi Building, located in front of Tokyo station,
an important transportation hub. The new building will have
total floor space of 160,000 square meters, approximately 250
percent more than the previous building, and will begin
contributing earnings in August 2002. The next building to be
redeveloped will be the former Eiraku and Japan Industrial Club
Building, which has total floor space of 109,700 square meters.
That redevelopment is scheduled for completion in February 2003.

The office leasing market in Tokyo is likely to face pricing
pressures from the large amount of new space hitting the
metropolitan Tokyo market in the next couple of years. However,
these types of properties, which have strong locations and high-
quality information technology-related facilities, should be
able to attract strong tenants away from less prime sites and
withstand pricing pressures.

Mitsubishi Estate is also expected to benefit from steady profit
contributions from its less volatile property brokerage
business, led by its U.S.-based subsidiary and the world's
third-largest real estate service provider, Cushman & Wakefield.

Mitsubishi Estates' stable and lucrative US operations, which
are primarily focused on property brokerage and leasing,
generate about 20 percent of total sales.

Mitsubishi Estate's financial profile remains aggressive,
characterized by high debt usage. The company's level of debt
will likely remain unchanged over the next few years, as
investment will be held within internal cash flow. Total debt to
capital is expected to hover around 70 percent during this
period. As a result, cash flow protection measures will also
remain somewhat weak, with funds from operations to total debt
at below 10 percent.

However, the company is expected to generate more stable profits
since lowering the book value of its property portfolio through
write-offs in fiscal 1999 (ended March 2000) and fiscal 2000.

Mitsubishi Estate wrote off losses of Y127 billion, equivalent
to approximately half of the book value of its property for sale
portfolio (or inventories) two years earlier. The company also
benefits from superior financial flexibility, backed by its
holdings of considerably undervalued properties.

OUTLOOK: STABLE

Mitsubishi Estates' solid market position, highly competitive
leasing portfolio, and the mild geographic diversity of its
earnings base, are likely to provide stabilized earnings and
cash flow generation despite ongoing difficulty in its operating
environment, Standard & Poor's said.

ISSUER CREDIT RATINGS

Mitsubishi Estate Co. Ltd.
Corp credit rtg                                BBB+/Stable/A-2

MEC Finance USA Inc.
Corp credit rtg                                BBB+/Stable/A-2

REVISED OUTLOOKS

Mitsubishi Estate Co. Ltd.

CP                                             A-2
Sr unsecd debt                                 BBB+

MEC Finance USA Inc.
CP (Sppt: Mitsubishi Estate Co. Ltd.)          A-2

Sr unsecd debt
(Sppt: Mitsubishi Estate Co. Ltd.)        BBB+


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


DAEWOO ELECTRONICS: To Dispatch Sale Proposals In July
------------------------------------------------------
After the completion of the due diligence on the company,
creditors of Daewoo Electronics Company are ready to begin the
disposal of sale proposals to foreign investors by the month's
end, The Asian Wall Street Journal reported Tuesday, citing
Dong-a Ilbo, a local newspaper.

According to the report, about four foreign firms are anxious to
propose their bid for takeover. These firms are based in the
U.S., France and Japan.

A bidding process will commence once the creditors have agreed
on the implementation method for the planned debt-for-equity
swap, involving the sum of W400 billion, and capital writedown,
the newspaper said.


HAITAI CONFECTIONERY: Banks To Extend W270B In Loans
----------------------------------------------------
In order to fast-track the sale of bankrupt Haitai Confectionery
Company, local creditor banks have agreed to extend a total of
W270 billion in buyout financing to a consortium lead by UBS
Capital Asia Pacific, The Asian Wall Street Journal reported
Monday, citing Chohung Bank.

Meanwhile, due diligence on the assets and extent of debts of
Haitai is currently being conducted by the consortium, the
newspaper says.

Creditors estimate that the value of Haitai's assets could reach
to as much as W480 billion, factoring in goodwill.

Haitai filed for court receivership in April, four years after
it was declared bankrupt in 1997, following the collapse of the
group.



HYUNDAI ENGINEERING: Creditors Up Loan-Loss Reserves For Group
--------------------------------------------------------------
Domestic creditor banks of Hyundai Engineering and Construction
Company (HDEC) and other Hyundai Group companies have raised
their loan-loss reserves against the said firms, The Korea
Herald reports Wednesday, citing sources.

The banks are: Kookmin, Housing and Commercial, Hanvit, Hana,
Shinhan, KorAm, Chohung and Seoul. These banks agreed to swap a
total of W1.4 trillion of HDEC's debts for equity, as part of
the rescue attempts for the company.


KOREA LIFE: Receiving W800B In Public Funds From KDIC
------------------------------------------------------
Korea Life Insurance Company is going to receive W800 billion in
public funds from state-run Korea Deposit Insurance Corporation
(KDIC) late this month, The Asian Wall Street Journal reported
Monday.

Meanwhile, the government expects to complete the sale of Korea
Life by year-end through an auction.


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


LAND & GENERAL: Court To Hear Standstill Extension Application
--------------------------------------------------------------
Land & General Berhad (L&G) and Bayerische Landesbank
Girozentrale have agreed to extend the standstill period to 22
July 2001 and the Court has fixed 23 July 2001 for mention of
L&G's court application.

In relation to the default in payment of the principal sum in
respect of a Syndicated Revolving Credit Facility (the Facility)
taken by Bandar Sungai Buaya Sdn Bhd (BSB), a wholly-owned
subsidiary of Land & General Berhad (L&G), the Company announces
that the security agent for the lenders of the Facility had, on
13 July 2001, served a notice of default on BSB with respect to
the charge dated 12 July 2001 (Notice), demanding repayment of
the alleged outstanding principal sum plus accrued interest
within seven days from the date the Notice had been served.
Failure to do so the said security agent would institute legal
action to foreclose on the parcels of land which were charged as
security for the Facility.

The negotiations between BSB, L&G and the lenders to restructure
the Facility is on-going. Due to this, BSB has requested for the
said lenders' indulgence.


LONG HUAT: Clarifies Petitioner's Claim
---------------------------------------
Long Huat Group Berhad (LHG), on behalf of its wholly owned
subsidiary Long Huat Furniture Berhad (LHF), clarifies that the
amount claimed by the petitioner of the winding up petition
against LHF is for the delivery of goods to LHF in which there
is a dispute on the quality which resulted in the payment not
being made as scheduled.

LHF is currently negotiating with the petitioner and expects to
settle all outstanding issues before the hearing date of the
petition.

The company also notes that there is no interest charged on the
amount claimed for under the Winding-up Petition.


MAN YAU: Court Grants Extension To RO
-------------------------------------
The application made by the Man Yau Holdings Berhad and its
subsidiary, Wang Corporation Sdn Bhd for an extension of the
Restraining Order (RO) under Section 176 (10) of the Companies
Act, 1965 had been granted by the High Court.

The Restraining Order has been extended for another period of 3
months effective from 16 July 2001 to 16 October 2001, to
facilitate the implementation of the restructuring exercise of
the Company.


MELCON ENGINEERING: Court Strikes Petition With Cost
----------------------------------------------------
The High Court struck the winding up petition of Melcon
Engineering Consultants Sdn Bhd with cost on 5 July 2001.

A new hearing will be held on 14 September 2001.


PILECON PTE: Winding Up Petition Served
---------------------------------------
Pilecon Engineering Berhad revealed a winding up petition had
been presented on the 27 June 2001 against Pilecon Pte Ltd of
Singapore, a wholly owned subsidiary of the Company, for a claim
of S$34,809.40.

The Solicitors of Pilecon Pte Ltd have been instructed to
restrain the said petition and present a scheme of arrangement.

Profile

Since commencing operations in February 1980, the Company (PE)
has grown from a small piling firm to a construction company
offering soil and foundation engineering services as well as
undertaking major building and civil engineering projects in
Malaysia and countries such as Singapore, Brunei, Hong Kong,
Korea and Taiwan.

PE has also diversified into property development and water-
related projects. Major property development projects are in
Johor, notably in Bandar Bukit Bayu in Plentong and JB
Waterfront City, a multi-billion Ringgit infrastructural-cum-
property development to be developed over 15 to 20 years.

The Johor Baru Water Privatization Project awarded on a `build,
operate and transfer' basis involve s the upgrading of existing
facilities and construction of a new water treatment plant and
supply of potable water to the district of Johor Baru.

Besides Johor, PE also operates in Selangor, Wilayah
Persekutuan, Penang, Kedah, Malacca and Pahang.


SAMANDA MARKETING: Faces Winding Up Petition
--------------------------------------------
WTK Holdings Berhad says a winding-up petition under Section 218
of the Companies Act 1965, has been presented by JAC Malaysia
Sdn Bhd (JAC) on 23 June 2001, against Samanda Marketing & Sales
Sdn Bhd (SMS), a subsidiary of Central Mercantile Corporation
(M) Sdn Bhd (CMCM) which is a subsidiary of W T K Holdings
Berhad. The petition was served on SMS on 13 July 2001.

JAC's petition is based on a Judgment dated 8 May 2000 handed
down by the Senior Assistant Registrar at the Shah Alam High
Court (Under Order 14 Rules of High Court 1980) for goods sold
and delivered to SMS.

The judgment sum is RM330,414.82 together with interest at the
rate of 8 percent per annum from 28 July 1998 until full
settlement.

SMS has through its solicitors filed a Notice of Appeal dated 12
May 2000 to the Judge in Chambers and the same is fixed for
Hearing on 15 August 2001.

JAC has petitioned to the High Court of Malaysia that:

   a. SMS be wound up in accordance with the Companies Act,
1965.

   b. Such fit and proper person and persons be appointed as
liquidators of SMS.

   c. The Court grant such other relief that the Court deem fit.

   d. Cost of the petition be borne by SMS.

WTK Holdings Berhad's cost of investment in SMS through its
wholly owned subsidiary, CMCM, is approximately RM72,000.

JAC's petition will not have any significant financial and
operational effect on the WTK Holdings Berhad group and SMS does
not anticipate significant financial effect arising from the
JAC's petition should SMS choose to settle the claim.

Although SMS has ceased operation since May 1999, it will be
resisting the petition as SMS seriously disputes the amount
claimed by JAC.


SAMANDA MARKETING: Losses Not Expected, WTK Says
------------------------------------------------
WTK Holdings Berhad says that WTK Holdings Berhad group do not
anticipate any losses to arise from the winding-up petition
filed against Samanda Marketing & Sales Sdn Bhd other than legal
fees incurred to resist the petition.


UNITED ENGINEERS: Seeks Trading Suspension
------------------------------------------
United Engineers (Malaysia) Berhad yesterday requested that
trading in the ordinary shares and warrants of the Company be
suspended for four market days. United Engineers has requested
the suspension be effective from 9:00 am Wednesday, 18 July 2001
until 5:00 pm on Monday, 23 July 2001, pending a major
transaction that is expected to be announced Monday, 23 July
2001.

The details of the proposed transaction are expected to be
announced via the Kuala Lumpu Stock Exchange and the Company
believes matters raised in the query will be clarified by that
announcement.


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


NATIONAL CONSTRUCTION: Explains Contracts Recently Signed
---------------------------------------------------------
Philippine National Construction Corporation (PNCC) announces
that the Company, represented by its Chairman & CEO, Atty. Luis
F. Sison, on authority of the PNCC Board have signed the
following contracts:

      1. Shareholder Contribution Agreement by and among Manila
North Tollways Corporation (MNTC) as Borrower, the Dai-ichi
Kangyo Bank Ltd. as the Inter Creditor Agent, the Chase
Manhattan Bank as Security Trustee, the Chase Manhattan Bank
Manila Branch as Co-Security Trustee, the First Philippine
Infrastructure Corporation (FPIDC), Egis Projects S.A. of
France, Transroute International S.A. of France, Benpres
Holdings Corporation and PNCC;

      2. Mortgage, Assignment & Pledge Agreement by and among
MNTC, FPIDC, Egis Projects, PNCC, Transroute International,
Manila North Tollways Operation Maintenance Corporation (MNTOMC)
as Operator, the Chase Manhattan Bank as Security Trustee, the
Chase Manhattan Bank Manila Branch as Co-Security Trustee and
the Dai-ichi Kangyo Bank Ltd. as Itner-Creditor Agent;

      3. Toll Collection Clarification Memorandum of Agreement
in the matter of Clause 17.5 of the Supplemental Toll Operation
Agreement (STOA) (covering Phase 1 of the Manila-North Luzon
Expressway Project) by and among the Republic of the Philippines
acting by thru the Toll Regulatory Board (TRB) as Grantor, PNCC
as Franchise/Grantee, and the MNTC.

To recall, in September of last year, the government uncovered
large amount of the company's liabilities, after a due diligence
on the company was conducted, in preparation for the
privatization of the state-run contractor.

Some P32 billion in "unbooked liabilities" were discovered after
a due diligence audit by financial adviser Asset Privatization
Trust (APT), in addition to the P5.4 billion the state-owned
construction firm owed to various institutions.


NATIONAL STEEL: Allengoal, Glencore Join Forces
-----------------------------------------------
Allengoal Steel Fabrication & Trading Corporation and Glencore
Far East Philippines AG have linked ties to strengthen their bid
for debt-ridden National Steel Corporation (NSC), The Business
World reported Wednesday.

In a phone interview with World, Allengoal President Alexander
Delmo said, "We are finalizing the draft for a memorandum of
agreement (MoA) with Glencore and we expect to sign it within
the week. With Glencore as a partner, we hope to expedite the
re-opening of the plant and to be granted the lease for the
same."

The proposed agreement between both parties will call for the
injection of more than $150 million in fresh funds into NSC to
be made by Glencore, which will then be used to fulfill the
obligations of the steel firm.

Glencore, under the agreement, will shoulder the purchasing of
raw materials, production management, sale, and bringing in
technical expertise once the steel milling plant re-opens, the
report said.

Glencore Executive Vice President Angel Veloso Jr, in a letter
to NSC liquidator, was quoted as saying, "We are looking at this
project as a long term commitment and have studied different
scenarios in which to effectively operate the works which will
benefit both parties."


RFM CORP: Announcement Regarding Cosmos Buyer Expected
-------------------------------------------------------
RFM Corporation confirms that the company is currently in
discussion with both Coke/San Miguel Corporation and Pepsi Co.,
for the sale of Cosmos Bottling Corporation, of which the
company is a majority owner.

The company says no agreement has been reached at this time.

"We expect to reach final agreement with one of the parties
within the week," a source close to the company says.


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


ASIA FOOD: Market Affects Profitability, Auditors Say
-----------------------------------------------------
Deloitte & Touche and partner Chaly Mah Chee Kheong, as auditors
of Asia Food & Properties Limited report the following:

"We were engaged to audit the accompanying balance sheets of
Asia Food & Properties Limited and of the Group as at December
31, 2000, the profit and loss statements, the statements of
changes in equity and consolidated cash flow statement for the
year then ended. These financial statements are the
responsibility of the Company's directors.

"Except as discussed in the following paragraphs, we conducted
our audit in accordance with Singapore Standards on Auditing.
Those Standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant
estimates made by the directors, as well as evaluating the
overall financial statement presentation.

Concentration of risk

"We draw attention to Note 41(a) to the accompanying financial
statements, which describes the significant uncertainties that
have affected and may continue to affect the future operations
of the Group and the realization of carrying amounts of certain
assets of the Company and of the Group due to the ongoing
economic recession in Indonesia and the declining crude palm oil
(CPO) prices.

"The Indonesian economy and banking industry have been adversely
affected by the depreciation of the Indonesian Rupiah and the
adverse social and political conditions in Indonesia.

"In addition, the declining trends in international prices of
refined palm products and CPO as a result of an oversupply in
major markets have adversely affected the profitability of the
Group and the recoverable amount of the Company's investment in
quoted equity shares in the subsidiary, Golden Agri-Resources
Ltd, amounting to $811,331,000, the recoverable amount of the
Company's trade and other receivables from subsidiaries in the
Indonesia Agriculture Division amounting to $72,758,000 and the
recoverable amount of the Indonesia Agriculture Division's
plantation and refinery assets which are stated in the
consolidated balance sheet at valuations performed in 1997
pursuant to a Restructuring Exercise described in Note 2(a) to
the accompanying financial statements.

"In view of the conditional option that has been granted by the
Company to sell up to 50.1 percent of equity interest in Golden
Agri-Resources Ltd as described in Paragraph 7 below, we are
unable to determine the amount of permanent impairment in value,
if any, on the Indonesia Agriculture Division's plantation and
refinery assets that should be provided for in the Group's
financial statements as at December 31, 2000.

"The accompanying financial statements do not include the
effects of these conditions as they cannot be presently
determined and estimated. Related effects of these uncertainties
will be reported in the financial statements as they become
known and can be estimated.

Realization of Time Deposits, Cash and Cash Equivalents and Swap
Receivables

"We draw attention to Note 41(b) to the accompanying financial
statements, which describes the credit and other risk exposures
of the Company and the Group with a related party bank
incorporated in Indonesia (the Indonesian Bank) and a related
party bank incorporated in the Cook Islands (the Cook Islands
Bank).

"As disclosed in Note 41(b)(i) to the accompanying financial
statements, as at December 31, 2000, the Group has time deposits
and cash and cash equivalents of approximately $85,375,000
placed with the Indonesian Bank. The realization of the Group's
time deposits and cash and cash equivalents placed with the
Indonesian Bank may be adversely affected if the financial
condition of the Indonesian Bank deteriorates, or if
restrictions are placed by the Indonesian government or by the
Indonesian Bank on the Group's ability to withdraw such deposits
and cash and cash equivalents upon demand or upon their
maturity. These financial statements do not include any
adjustment relating to the uncertainties over the recovery of
these time deposits and cash and cash equivalents. Related
effects of these uncertainties will be reported in the
consolidated financial statements as they become known and can
be estimated.

"As disclosed in Note 41(b)(ii) to the accompanying financial
statements, the Company and the Group have time deposits and
cash and cash equivalents amounting to $147,006,000 and
$624,602,000 respectively and the Group has two Indonesian
Rupiah/United States Dollar Principal Only Swaps recorded in the
accompanying balance sheets at an aggregate carrying amount of
US$87,500,000 (equivalent to $151,725,000) with the Cook Islands
Bank.

"The Cook Islands Bank is currently experiencing liquidity
shortages brought about by its inability to recover deposits and
loans given to related parties in Indonesia, which have been
affected by the depreciation of the Indonesian Rupiah and the
adverse economic conditions in Indonesia. As a result of the
liquidity shortages, in May 2001, the Cook Islands Bank has
proposed to repay the Group's cash and cash equivalents and time
deposits amounting to US$297,000,000 (equivalent to
$514,998,000) over a 5 year period.

"As a result of the aforementioned matters, there is substantial
doubt on the ability of the Cook Islands Bank to repay the
amounts due under the time deposits and cash and cash
equivalents and on its ability to fulfill its obligations upon
the maturity of the two swap contracts in July 2002 and 2003.

"The Board of directors has commissioned independent legal
advisors to conduct a review, which is ongoing, relating to the
deposits with the Cook Islands Bank. Related effects of the
above matters will be reported and disclosed in the accompanying
financial statements, statutory or other forms of reporting
obligations of the Company and the Group as they become known
and can be estimated.

Breach of Loan and Debt Covenants

"As disclosed in Notes 21(b), 23(f) and 26(b) to the
accompanying financial statements, the Company and certain
subsidiaries within the Group have defaulted in payments and
breached certain financial covenants and failed to comply with
certain indebtedness agreements.

"In addition, some of the existing credit agreements of the
Company and the Group have been breached as a result of these
breaches in other indebtedness agreements. As a result of these
breaches in covenants and defaults in payment, the lenders have
the right to recall the outstanding loans immediately, upon
serving notices of defaults to the Company and the subsidiaries
concerned. Consequently, these loans become repayable upon
demand as at December 31, 2000 in accordance with the respective
loan agreements.

"Accordingly, in the accompanying financial statements, the non-
current portion of these long-term debts have been reclassified
to current liabilities. As a result of this reclassification
from non-current to current liabilities, the Group's current
liabilities exceed its current assets by $699,914,000 as at
December 31, 2000.

"The amount of loans and debts which the subsidiaries have
defaulted in payments and breached certain covenants and
indebtedness agreements include $309,723,000 which have been
guaranteed by the Company.

"The directors of the Company and the respective subsidiaries
are presently negotiating with the lenders to the Company and
the Group for waiver of these breaches and defaults and for
extension of terms. It is presently not possible to determine
the eventual outcome of these negotiations.

Going Concern

"The matters set out in Paragraphs 3, 4 and 5 above may affect
the validity of the going concern assumption on which the
accompanying financial statements are prepared. The validity of
the going concern assumption on which the accompanying financial
statements are prepared depends on the successful conclusion of
all of these matters. Therefore, we are not able to form an
opinion as to whether the going concern basis of presentation of
the accompanying financial statements is appropriate.

"The accompanying financial statements do not include any
adjustments relating to the realization and classification of
asset amounts or to the amounts and the classification of
liabilities that may be necessary if the Company and the Group
are unable to continue as going concerns. If the Company and the
Group were unable to continue as going concerns for the
foreseeable future, adjustments may have to be made to reflect
the situation that assets may need to be realized other than in
the amounts at which they were recorded in the accompanying
balance sheets.

"In addition, the Company and the Group may have to provide for
further liabilities that might arise, and to reclassify non-
current assets and non-current liabilities as current assets and
current liabilities respectively.

Investment in Quoted Shares in a Subsidiary

"As stated in Notes 11 and 43 to the accompanying financial
statements, the market value of the Company's 55.02 percent
equity investment in a subsidiary, Golden Agri-Resources Ltd, of
$257,000,000, is substantially lower than its book value of
$811,331,000. In addition, as stated in Note 39(a) to the
financial statements, in May 2001, the Company has entered into
a conditional option agreement to sell up to 50.1 percent of
equity interest in the subsidiary at an agreed price, which will
result in a loss on disposal amounting to between $303,000,000
to $505,000,000 for the Company and between $367,000,000 to
$603,000,000 for the Group, depending on the percentage of
equity interest disposed.

"We were informed by the directors of the Company that the
conditional option has not yet been exercised by the holder of
the option as at the date of this report.

"No provision has been made for diminution in value of this
investment in the Company's financial statements. The directors
are of the view that no provision for diminution in value is
required as at December 31, 2000 since the Company had intended
to hold the investment on a long-term basis as at the balance
sheet date.

"In view of the conditional option that has been granted by the
Company to sell up to 50.1 percent of equity interest in Golden
Agri-Resources Ltd as described in Paragraph 3 above, we are
unable to determine the amount of permanent impairment in value,
if any, on the Company's investment in Golden Agri-Resources Ltd
and on the Indonesia Agriculture Division's plantation and
refinery assets that should be provided for in the Company's and
the Group's financial statements as at December 31, 2000.

"The accompanying financial statements do not include the
effects of these conditions as they cannot be presently
determined and estimated. Related effects of these uncertainties
will be reported in the financial statements as they become
known and can be estimated.

The auditors' reports on the financial statements of the
subsidiaries were not subject to any qualification and in
respect of the subsidiaries incorporated in Singapore did not
include any comment made under Section 207(3) of the Singapore
Companies Act except for the following subsidiaries whose
auditors' reports on the financial statements of the
subsidiaries were qualified as follows:

   a) Golden Agri-Resources Ltd and its subsidiaries (GAR)

      The auditors' report on GAR dated July 3, 2001 has a
disclaimer of opinion. The auditors did not express an opinion
on the consolidated financial statements of GAR because the
auditors stated that:

         i) there are significant uncertainties that have
affected and may continue to affect the future operations and
the realization of carrying amounts of certain assets of GAR due
to the ongoing economic recession in Indonesia and the declining
crude palm oil prices;

         ii) there are uncertainties concerning the realization
of GAR's time deposits and cash and cash equivalents amounting
to US$13,130,000 (equivalent to $22,767,420) placed with a
related party bank incorporated in Indonesia and the realization
of GAR's time deposits and cash and cash equivalents amounting
to US$248,155,000 (equivalent to $430,301,000) and currency swap
receivables amounting to US$87,500,000 (equivalent to
$151,725,000) with a related party bank incorporated in the Cook
Islands. The Board of directors of GAR has commissioned
independent legal advisors to conduct a review which is ongoing,
relating to the deposits with the Cooks Islands Bank;

          iii) certain subsidiaries in GAR have defaulted in
payments, breached certain financial covenants and failed to
comply with certain indebtedness agreements and the lenders have
the right to recall the outstanding loans immediately.
Accordingly, the non-current portion of these long-term debts
have been reclassified to current liabilities, resulting in the
Group's current liabilities exceeding its current assets by
US$347,132,000 (equivalent to $601,927,000); and

          iv) the matters set out in the preceding paragraphs
may affect the going concern assumption on which GAR's financial
statements have been prepared. The use of the going concern
assumption depends on the successful conclusion of the above
mentioned matters.

"Please refer to Note 42(a) for details of the auditors' report
on GAR.

    b) Asia Integrated Agri Resources Limited and its
subsidiaries (AIARL)

       The auditors' report on AIARL dated July 2, 2001 has a
disclaimer of opinion. The auditors did not express an opinion
on the consolidated financial statements of AIARL because the
auditors stated that:

         i) the Company may be unable to provide ongoing
financial support to the AIARL;

         ii) the holders of the US$25,000,000 (equivalent to
$43,350,000) convertible notes have issued a demand for
immediate repayment of the notes and included a reference to the
breach of covenant requiring the submission of audited financial
statements within 90 days after the year end; and

         iii) the AIARL group may be unable to continue as a
going concern.
Please refer to Note 42(b) for details of the auditors' report
on AIARL.

    c) AFP Land Limited and its subsidiaries (AFP Land)

       The auditors' report on AFP Land dated [May 28, 2001]
issued a qualified opinion on the financial statements of AFP
Land as the directors of AFP Land are unable to determine:

         i) the recoverability of balances, amounting to
$11,650,000, from related companies, given the fundamental
uncertainties affecting the financial position of the Company;

         ii) the recoverability of cash and cash equivalents and
time deposits of $42,199,000 placed with a related party bank;
and

         iii) whether investment properties amounting to
$3,750,000 used to secure bank facilities for the Company would
be called by the bank to settle the loan obligation of the
Company.

"Because of the significance of the matters referred to in the
preceding Paragraphs 3 to 8 above, we are not in a position to,
and do not, express an opinion on whether the accompanying
financial statements and consolidated financial statements are
properly drawn up in accordance with the provisions of the
Singapore Companies Act and Singapore Statements of Accounting
Standard and so as to give a true and fair view of:

    a) the state of affairs of the Company and of the Group as
at December 31, 2000 and of the results, changes in equity of
the Company and of the Group, and cash flows of the Group for
the financial year then ended; and

    b) the other matters required by Section 201 of the Act to
be dealt with in the financial statements
and consolidated financial statements.

"In our opinion, except for the matters referred to in the
preceding paragraphs, the accounting and other records and
registers required by the Act to be kept by the Company and by
those subsidiaries incorporated in Singapore of which we are the
auditors have been properly kept in accordance with the
provisions of the Act.

"We have considered the financial statements and auditors'
reports of all the subsidiaries of which we have not acted as
auditors, being financial statements included in the
consolidated financial statements. The names of these
subsidiaries are indicated in Note 43 to the financial
statements.

"Except for the matters referred to in Paragraph 8 above, we are
satisfied that the financial statements of the subsidiaries that
are consolidated with the financial statements of the Company
are in the form and content appropriate and proper for the
purposes of the preparation of the consolidated financial
statements and we have received satisfactory information and
explanations as required by us for those purposes."


ASIA PULP: Net Losses Expected For Year Ended December 2000
-----------------------------------------------------------
In its statement filed with the U.S. Securities and Exchange
Commission, Asia Pulp & Paper Company (APP) expects to post a
net loss for the year ended December 31, 2000, although the
company admits it has yet to "quantify these amounts", The Asian
Wall Street Journal reports Wednesday.

"We are currently experiencing substantial liquidity and other
financial difficulties," the company said in its statement dated
June 29, signed by APP Chief Finance Officer Hendrik Tee,
referring to the company's failure to file its annual report for
2000 with the commission.

Further, it added, "[the management] has been focusing its
efforts on developing and implementing plans to reduce costs and
increase liquidity, and to evaluate financial and strategic
options that would allow us to restructure our operations and
our existing indebtedness."

In March, Asia Pulp & Paper called for a debt standstill, to
work on the restructuring of its debts and obligations reaching
$13.4 billion.


NATSTEEL LIMITED: Acquires Stake In Lee Metal
---------------------------------------------
NatSteel Limited revealed it has completed its subscription for
60 million ordinary shares in the capital of Lee Metal Group
Ltd. The subscription represents 20 percent of the latter's
existing issued share capital, or 16.7 percent of the enlarged
share capital further to the Placement Agreement dated 17 March
2001 at the subscription price of S$0.155 per share.

NatSteel's total investment amounts to an aggregate of
S$9,300,000.

None of the directors or substantial shareholders of NatSteel
has any interests, direct or indirect, in this transaction.

Last week, NatSteel announced that due to the continued weakness
in the domestic construction sector and restructuring measures
being taken, the Group will post a loss for the half year ended
30 June 2001.

NatSteel's Singapore steel operations, in particular, have been
impacted by lower selling prices and by electricity tariffs some
35 percent higher than the corresponding period last year.


PANPAC MEDIA.COM: Cites Reasons For Lower Turnover
--------------------------------------------------
In order to provide additional information relating to the
Company's full year results for the financial year ended 31
March 2001, disclosed and released on 30 June 2001, Panpac
Media.com Limited released the following:

I. When the Directors were first aware that the bases for their
expectations were no longer appropriate, resulting in a lower
turnover and higher operating losses for the second half of
FY2001 compared to the first half of FY2001

Despite the cessation of our Hong Kong operation and the
cessation of publication of the 3 titles in Singapore, we had
expected that revenue in H2 FY2001 would be higher than H1.

The expectation was on the basis that the loss in revenue
arising from these would be compensated by additional revenue
from the two new titles published by the Group in Malaysia with
effect from Q3. The basis for our expectations, however, was
adversely affected by the sudden and severe economic slowdown in
Q4.

Discounting the effects of the weak market conditions in Q4, the
rationalization of our publishing program should have had a
positive impact on the Group's profits in H2. Losses in H2 were
significantly higher than H1 largely as a result of one-time
charges arising from the closure of AsiaStockWatch, and the
restructuring of ZingAsia portal.

II. Revised prospects statement relating to future performance
of the Company

Despite the economic slowdown, the Directors expect the Group's
performance in the current fiscal period ending December 31 2001
to be significantly better than the previous year.

This is because of the measures taken to rationalize the Group's
business activities, particularly with regards to the two
Internet businesses.

III. Details of the exceptional loss amounting to $3,230,000

The exceptional loss amounting to $3,230,000 was due to the
write-down of the book value of equipment and software of both
Asiastockwatch and ZingAsia to their estimated realizable
values.


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


SRITHAI SUPERWARE: Clarifies Report Submission
----------------------------------------------
SGV-Na Thalang & Co., Ltd. as the Plan Administrator of Srithai
Superware Public Company Limited, said the submitted progress
report is for the fourth and fifth quarters of implementing
Srithai Superware Public Company Limited's Business
Reorganization Plan from October 1, 2000 to March 31, 2001.


THAI PATHANA: Petition For Reorg Filed With Civil Court
-------------------------------------------------------
Thai Pathana Steel Industry Public Company Limited (the Debtor)
is engaged in smelting and melting metal to produce the tools
using in the part of engineering, architecture and agriculture
and also producing round bar, reform bar, channel steel, and
other form of steel.

The Debtor's Petition for Business Reorganization was filed to
the Civil Court:

   Black Case Number Lor.Phor. 3/2542

The case has been transferred to the Central Bankruptcy Court

   Red Case Number Phor.19 /2542

Petitioner: Phatra-thanakit Public Company Limited

Planner: Thai Pathana Steel Industry Public Co.Ltd: debtor

Debts Owed to the Petitioning Creditor: Bt820,381,221.98

Date of Court Acceptance of the Petition: April 2,1999

Court Order for Business Reorganization and Appointment of
Planner: May 4, 1999

The creditors' meeting then passed special resolution accepted
the first and the second issues of the amended plan and also
passed the special resolution establishing the creditors'
committee which is comprised of:

   1. ASIA BANK PUBLIC COMPANY LIMITED (creditor number 34)

   2. KRUNG THAI BANK PUBLIC COMPANY LIMITED (creditor number
41)

   3. BANK THAI BANK PUBLIC COMPANY LIMITED (creditor number 26)

   4. AIG FINANCE (THAILAND) PUBLIC COMPANY LIMITED (creditor
number 22)

Number of creditors filing Applications for Debt Repayment: 62

Amount of debts: Bt4,137,627,114.06

The Court issued an order accepting the reorganization plan:
January 20, 2000 and appointed THAI PATHANA STEEL INDUSTRY
PUBLIC CO.LTD to be an administrative planner

Court approved the amended plan: June 21, 2000

Announcement of Court Order for Business Reorganization and
Appointment of the Planner: in Matichon Public Company Limited
and Siam Rath Company Limited: June 29, 2000

Announcement of Court Order for Business Reorganization and
Appointment of the Planner: in Government Gazette on July 27,
2000

Contact: Mr. Chanin, Tel. 6792512


THANULUX PUBLIC: Takes Over Unit's Assets
-----------------------------------------
As per the resolution of the 27th Ordinary Shareholders' Meeting
in April, the subject of which was the restructuring of the
Company, Thanulux Public Company Limited (the Company) revealed
its wholly owned subsidiary Thanulux Kabinburi Company Limited
has merged with the Company since July 1, 2001.

The merger was carried out by transferring all assets and
liabilities of Thanulux Kabinburi Co. Ltd. to the Company.


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

Troubled Company Reporter -- Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick,
Ronald Villavelez, Maria Vyrna Ni¤eza, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.  Information
contained herein is obtained from sources believed to be
reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6 months
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 301/951-6400.

                      *** End of Transmission ***