/raid1/www/Hosts/bankrupt/TCRAP_Public/010723.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

            Monday, July 23, 2001, Vol. 4, No. 142


                         Headlines



A U S T R A L I A

JOYCE CORP: Receivers Relieve Smetana From CEO Post
NATURAL GAS: Directors Resign, Replaced With Santos Nominees
NATURAL GAS: Lodges Schemes Of Arrangement Approval
NATURAL GAS: Suspended From Official Quotation
NORMANS WINES: Trading Halt
PASMINCO LIMITED: Restructures Operations, Balance Sheet


C H I N A   &   H O N G  K O N G

BRIGHTFORD LIMITED: Winding Up Petition To Be Heard
FOOK YAT: Winding Up Petition Set For Hearing
FOURSEAS.COM: Delay In Dispatch Of Composite Document Likely
G-PROP HOLDINGS: Posts Loss Of HK$458M
INNOVATIVE INTL: Enters Debt Workout Deal
KEL HOLDINGS: Completes Workout, Posts HK$14.095M In Turnover
LEONIAN INTERNATIONAL: Faces Winding Up Petition
MULTI POWER: Hearing of Winding Up Petition Set
PACIFIC CENTURY: May Slash US$2.5B Bond Issue
PEARL ORIENTAL: Trading Suspended
SINOPEC CORP: Posts Balloting Results For A Shares Issue
SUN LUM: Petition To Wind Up


I N D O N E S I A

BAKRIE & BROTHERS: Unit Hinders US$1.1B Debt Workout
DARYA VARIA: Widens Loss To Rp16.34 Billion


J A P A N

DAIWA SECURITIES: Moody's Changes Rating Outlook To Negative
SNOW BRAND: Recalls Contaminated Products Wednesday
TOKYO MUTUAL: Trustees Seeking Y680M In Damages Over Misconduct


K O R E A

DAEWOO ENGINEERING: To Get Contract To Build $237-M Plant
HAITAI CONFECTIONERY: Trading Suspended
HYNIX SEMICON: May Cut Capital Spending By 40%
KOREA LIFE: Posts Profits Of W30 Billion
POHANG IRON: Pursuing Investment Plans Despite Market Slump
SAMSUNG HEAVY: BG Group To Buy LNG Ships
SEOULBANK: DB Capital Gets Exclusive Right To Negotiate
SEOUL GUARANTEE: Gov't Still Undecided Over Fund Injection


M A L A Y S I A

AVENUE ASSETS: Enters Supplemental Deal With Genting Daya
JOHOR CITY: Defaults On Principal, Interest Payment
PANGLOBAL BERHAD: Gets Restraining Order Extension
PILECON ENGINEERING: Trading Resumes
TECHNOLOGY RESOURCES: Seeking Approval On Eurobonds Haircut
YCS CORP: SC Grants Time Extension To Execute Workout


P H I L I P P I N E S

MAYNILAD WATER: Decides To Implement Gradual Rate Hike
RFM CORP: Expects Revenue Drop After Cosmos Sale


S I N G A P O R E

CHARTERED SEMICON: Market Slump Affects Performance


T H A I L A N D

NAMPRASERT CONSTRUCTION: Reorg Petition Filed With Court
QUALITY HOUSES: No Warrants Converted

     -  -  -  -  -  -  -  -

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


JOYCE CORP: Receivers Relieve Smetana From CEO Post
---------------------------------------------------
Joyce Corporation Ltd announces that the Receivers and Managers,
who have the power to determine the composition of the Company's
management during the term of their appointment, have terminated
the services D A Smetana as Chief Executive Officer.

The Managing Director, R J M Brown, replaces Smetana as the
senior executive officer of the Company.

Smetana will continue as Chairman of the Board, which will now
comprise four non-executive directors and two executive
directors.


NATURAL GAS: Directors Resign, Replaced With Santos Nominees
------------------------------------------------------------
Following the approval by the Supreme Court of Victoria of the
Schemes of Arrangement Monday, all directors of Natural Gas
Australia Limited (NGA) resigned and were replaced with nominees
of Santos Limited, John Ellice-Flint, Michael Roberts and Don
Priestley. The secretary of NGA also resigned and was replaced
by Michael Roberts.

The registered office of NGA has now moved to Level 29, 91 King
William Street, Adelaide, South Australia 5000.


NATURAL GAS: Lodges Schemes Of Arrangement Approval
---------------------------------------------------
Natural Gas Australia Limited (NGA) lodged a copy of Judge
Warren's orders approving the three schemes of arrangement
Tuesday with the Australian Securities & Investments Commission.
NGA became a wholly-owned subsidiary of Santos Limited.

The three schemes of arrangement are effective immediately.

NGA securities ceased trading at the close of business of the
Australian Stock Exchange Tuesday and trading in new Santos
shares commenced Wednesday on a deferred settlement basis.


NATURAL GAS: Suspended From Official Quotation
----------------------------------------------
The securities of Natural Gas Australia Limited (the Company)
will be suspended from quotation from the close of trading on
Tuesday, 17 July 2001. The suspension followed the entrance of
the Court Order regarding the Company's three Schemes of
Arrangement with the Australian Securities & Investments
Commission and effecting a merger with Santos Limited

Security Codes: NGA
                NGAO


NORMANS WINES: Trading Halt
---------------------------
The securities of Normans Wines Limited (the Company) has been
placed in pre-open pending the release of an announcement by the
Company. Unless ASX decides otherwise, the securities will
remain in pre-open until the earlier of the commencement of
normal trading on Tuesday, 24 July 2001 or when the announcement
is released to the market.

Security Code: NMW
               NMWG

Normans requested a trading halt to its quoted securities (that
is, both its ordinary shares and its convertible notes) until
the end of trading on Monday 23 July 2001.

The trading halt was requested to allow the Company time to
negotiate with the ANZ Bank concerning the Company's facilities
with the Bank following the cessation in merger discussions with
Xanadu Wines Limited.

It was expected that the Company would be able to make a further
detailed announcement once it had had discussions with the
ANZ Bank. It was expected that discussions would conclude by the
close of trading on Monday 23 July 2001.

The Company was not aware of any reason why the trading halt
should not be granted.


PASMINCO LIMITED: Restructures Operations, Balance Sheet
--------------------------------------------------------
Pasminco Limited announced Friday a significant restructuring to
enhance shareholder value and ensure the company's long term
viability in an increasingly competitive global market.

Pasminco Chairman, Mark Rayner said: "The Board's objective is
to ensure the best possible outcome for Pasminco shareholders
and address the company's present financial difficulties."

"In order to enhance shareholder value, the Board has decided to
restructure the company's operations and balance sheet as
quickly and securely as possible by selling assets and reducing
debt," he said.

Discussions are progressing with the company's principal lenders
to ensure that appropriate liquidity support will be available,
if necessary, during the restructuring period and a Memorandum
to that end has been signed by the lenders and delivered to
Pasminco.

Various combinations of asset sales have been carefully reviewed
and subjected to detailed financial analysis to identify what is
likely to be the fastest and most assured solution to Pasminco's
present difficulties. The restructuring proposed is subject to
regulatory and other approvals.

However, it is expected that asset sales discussions will
proceed without delay with potential buyers, including those who
have already registered interest in each of the mining
properties.

UBS Warburg is working with the company on the restructure and
asset sales.

To achieve its objective, subject to necessary approvals,
Pasminco will sell the Century Mine in Queensland, along with
the already planned sales of the underground mines in Broken
Hill, Elura and Rosebery. The company's exploration interests,
including the Dugald River resource, will be sold.

After these asset sales the company will have world class
smelting assets in Australia, the US and Holland which deliver
stable earnings and strong cash flows. 1999/2000 smelting
earnings before interest and tax were more than $140 million and
the Business Improvement Program has significantly improved the
potential earnings stream from these assets.

Pasminco has zinc metal production facilities in the three major
market areas of the world and operates the largest primary lead
smelter in the world. It has experienced smelting management and
a lean workforce with demonstrated international operational and
marketing capability.

"Pasminco will remain the world's largest zinc and lead producer
with potential for growth when opportunities arise," Mr Rayner
said.

The restructure, to be implemented over the next twelve months
will:

     * refocus the company to deliver more stable earnings by
leveraging the business' core zinc and lead smelting
capabilities;

     * reduce the company's exposure to metal price volatility
through disposal of its mining assets;

     * cease exploration activity;

     * streamline the organization to dramatically reduce costs;
and

     * substantially reduce the company's debt and foreign
exchange  exposure.

Proceeds from asset sales will be utilized to reduce debt and as
appropriate close-out foreign currency hedges. By focusing on
smelting, Pasminco will avoid much of the volatility in earnings
arising from cyclical metal prices. It will have a strong
balance sheet with low gearing and the potential to resume
dividend payments.

David Stewart has advised the Board that he will step down from
his position as Managing Director and CEO, effective 31 July
2001.

Greig Gailey will be appointed as Managing Director and CEO and
will take up office on 6 August. Gailey most recently served as
Chief Executive of Fletcher Challenge Energy in New Zealand,
where he led the successful restructuring and development of the
company until its sale earlier this year to Shell/Apache.

His previous career, with BP, involved a number of senior
executive roles in the upstream energy and minerals industries
and in oil refining and distribution in Australia, the UK and
Europe.


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


BRIGHTFORD LIMITED: Winding Up Petition To Be Heard
---------------------------------------------------
The petition to wind up Brightford Limited is scheduled for
hearing before the High Court of Hong Kong on July 18, 2001 at
9:30 am. The petition was filed with the court on March 16, 2001
by Kau Lung Geotechnical Engineering Limited of Room 904, 9th
Floor, Hanson House, 794, 796-802 Nathan Road, Mongkok, Kowloon,
Hong Kong.


FOOK YAT: Winding Up Petition Set For Hearing
---------------------------------------------
The petition to wind up Fook Yat Kwok Seafood Restaurant Limited
is set 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 6, 2001 by Chow Kwok Yuen of Room 223, Choi Chu House, Choi
Yuen Estate, Sheung Shui, New Territories, Hong Kong.


FOURSEAS.COM: Delay In Dispatch Of Composite Document Likely
------------------------------------------------------------
Fourseas.com Limited said dispatch of composite document
regarding the proposed financial restructuring of the Company
may be delayed to on or before 26 July 2001.

The proposed financial restructuring of Fourseas.com is
comprised of Capital Reorganisation, subscription of
Subscription Shares, the Disposal Agreement (being major and
connected transaction of Fourseas.com), the Management Agreement
(being connected transactions of Fourseas.com), and the
Whitewash Waiver, jointly announced by Fourseas.com Limited,
South China Information and Technology Limited and Giant Glory
Assets Limited on 28 June 2001.

Pursuant to Rule 2(d)(iii) of Schedule VI and Rule 8.2 of the
Takeovers Code, the composite document (the "Composite
Document") regarding the Financial Restructuring Proposal and
the Whitewash Waiver is required to be dispatched by
Fourseas.com and Giant Glory to the shareholders of Fourseas.com
within 21 days of the date of the Announcement, which is 19 July
2001.

Pursuant to Rules 14.13(2) and 14.29(2) of the Listing Rules,
the Composite Document is required to be dispatched by
Fourseas.com and Giant Glory to the shareholders of Fourseas.com
within 21 days after the publication of the Announcement, which
is 20 July 2001.

In view of the earlier due date for the dispatch of the
Composite Document as required by the Takeovers Code, the
Composite Document should be dispatched by 19 July 2001.

The directors of Fourseas.com and Giant Glory announce that, as
further time is required to collate and compile the financial
information relating to the indebtedness statement of
Fourseas.com and further information relating to the Financial
Restructuring Proposal may be required to be contained in the
Composite Document, there will be a delay in the posting of the
Composite Document.

Applications have been made to the Stock Exchange and the
Executive of the SFC for the extension of time for dispatch of
the Composite Document to 26 July 2001.


G-PROP HOLDINGS: Posts Loss Of HK$458M
--------------------------------------
G-Prop (Holdings) Limited revealed its total revenue for the
year ended 31 March 2001 amounted to HK$11 million, a decrease
of 67 percent when compared with turnover of last year. The
Group continues to streamline the non-profit making operations,
especially in property investment business.

The Group incurred a loss for the year of approximately HK$458
million. The previous corresponding period saw a loss of
approximately HK$230 million.

Approximately HK$16 million of the loss is attributable to the
amortization of goodwill and intangible assets, as well as from
the disposal of some fixed assets superfluous to the group's
requirements. Approximately HK$321 million of the loss is
attributable to the impairment loss on goodwill arising from the
acquisition of subsidiaries and associates.

Business Activity Review

Energy Saving Machine

As a result of the acquisition of an additional 12.5 percent in
the shareholding of Legend Power Ltd. (Legend Power), the
current shareholding structure of Legend Power is as follows:

   - 50 percent owned by a wholly owned subsidiary of the
Company

   - 50 percent owned by Koga Limited, a wholly owned subsidiary
of Cheung Kong Infrastructure Holdings Ltd.

A factory for the production of the energy saving machines has
now been established in Hong Kong with a capacity to produce
approximately 2,000 machines annually.

In Hong Kong, a number of the electricity savings machines have
been installed in the Jusco Department Stores and negotiations
continue with other potential users.

In international markets, joint venture companies have been
established for the British and Canadian markets. Negotiations
continue in other international markets for the establishment of
joint venture companies.

Property Investment

The company continues to streamline its property portfolio as it
concentrates on the electricity saving machine business.

CashThrough International Ltd

The Group acquired 23.33 percent shareholding in the capital of
CashThrough International Ltd. (Cash Through). CashThrough is a
start-up application service provider based in Hong Kong, which
provides a secure electronic payment processing services
platform for the users worldwide through a self-developed system
by using a product known as Internet CashCard. The technology to
develop the system and to produce the CashCard is subject to a
pending patent in the United Kingdom.

In early 2001, CashThrough signed a memorandum of understanding
with Compaq Computer Limited for the purpose of exploring the
debit payment market in China.

Advertising Agency

The Group is the exclusive advertising agent for Asia Channel of
Macau Satellite TV Station (MATV).

MATV has obtained the encrypted downlink rights from the
relevant authorities in China at the end of 2000. MATV provides
coverage to the whole of China and other countries and areas of
the Asia Pacific region. The programs will be mainly news,
entertainment and "infotainment". The target viewers will
initially be Chinese nationals.

It is expected that commercial broadcast will commence later
this year. There have been some delay in the roll out of the
project and negotiations with the domestic television
broadcasters are taking longer than anticipated.

Direct Investment

The Group acquired 5 percent shareholding in the capital of CAA
Satellite TV Ltd (CAA Satellite). This investment is intended to
complement the Group's arrangement with MATV as CAA Satellite is
one of the operators of MATV.

The Group acquired a 10 percent shareholding in Gene Bio-Tech
Corporation Ltd. (Gene Bio-Tech) for HK$40 million. Gene Bio-
Tech operates in the biopharmaceutical sector of biotechnology
and drug industry and will develop and commercialize gene
therapy products. The products are pending patent applications
in China for two kinds of technology for the treatment of
cancer. At present, the company is in the process of preparing
various phases of clinical tests of several gene technology
therapy products.

The Group had agreed to acquire a 5 percent shareholding in Full
Result Investments Ltd, which indirectly holds certain interest
in Beijing Asia Television City Company Ltd, another operators
of MATV. This transaction was not completed and has resulted in
a loss of HK$14 million to the Group. It is not anticipated that
the Group will incur any further loss from this transaction.

Financial Review

For the year ended 31 March 2001 the Group expanded its capital
base through raising HK$52 million from a subscription of
90,500,000 new shares in July 2000.

The net proceeds has been used to refinance the HK$30 million
acquisition of advertising agency right of MATV and HK$22
million as general working capital of the Group.

>From August to December 2000, a gross proceeds of HK$378.8
million was raised from issuing 7.5 percent convertible bonds.
HK$30 million has been used for acquisition of an advertising
agency company, HK$110 million for acquisition of 23.33 percent
interest in CashThrough, HK$104.9 million for acquisition of
12.5 percent interest in Legend Power, HK$40 million for
acquisition of 10 percent interest in a bio-tech company and the
balance has been used as general working capital of the Group.

As at the end of March 2001, HK$113.6 million of the 7.5 percent
convertible bonds had been converted into ordinary shares in the
Company leaving outstanding 7.5 percent convertible bonds in the
amount of HK$265.2 million.

As a direct consequence, total debt increased from HK$194
million to HK$366.2 million. Financial expenses were reduced
from HK$34 million to HK$30 million for the year under review.

Liquidity and Financing

As at 31 March 2001, the Group's borrowings amounted to HK$366.2
million. Of the total borrowings at the year end date, the
maturity profile spread over a medium term period with HK$55.9
million repayable within 1 year and HK$310.3 million within 2 to
5 years.

All of the Group's borrowings was in Hong Kong dollar at year
end and approximately 78 percent of the borrowings are fixed
rate convertible bonds.

The Group's gearing ratio increased, calculated on the basis of
the Group's net borrowings (after deducting cash and bank
balances of HK$3.4 million) over shareholders' fund, at
approximately 748 percent at the year end date.

Taking into account the present available credit facilities and
internal resources of the Group, the Group has sufficient
working capital for its present requirements in absence of
unforeseen circumstances.

Contingent liabilities

As at 31 March 2001, the Group provided HK$9.5 million
guarantees to financial institution in respect of credit
facilities extended to a jointly controlled entity. The Company
provided HK$17.4 million guarantees to financial institution in
respect of credit facilities extended to subsidiaries and a
jointly controlled entity.

Charges on Assets

As at 31 March 2001, certain assets of the Group amounting to
HK$10.5 million were pledged to banks for banking facilities
granted to the Group.

Human Resources

The Group employed 36 employees at the year end date. Employees'
cost (excluding directors' emoluments) amounted to approximately
HK$9 million for the year. Remuneration packages are generally
structured by reference to market terms, individual merits and
performance.

Prospects and Outlook

The Group will maintain a competitive business portfolio to cope
with the current worldwide economic slowdown, with the focus on
the manufacture of energy saving machines. Through joint venture
with international strategic partners, we are committed to
establishing ourselves as a leading competitor in global energy
saving devices operations.


INNOVATIVE INTL: Enters Debt Workout Deal
-----------------------------------------
Innovative International (Holdings) Limited announced it entered
into a Debt Restructuring Agreement on 17 July 2001. The
existing total indebtedness owed to the Financial Creditors by
the Company is approximately HK$660 million. The debt will be
restructured by a combination of (i) the rescheduling of
approximately HK$360 million and (ii) the issue of Convertible
Notes with an aggregate face value of HK$300 million.

Important: As the Debt Restructuring Agreement is conditional
upon the fulfillment of various conditions on or before 17
September 2001 as described below, the Proposed Debt
Restructuring may or may not proceed. Shareholders should note
that the issue of this announcement does not in any way imply
that the Proposed Debt Restructuring will necessarily be
implemented and completed. Shareholders should exercise caution
when dealing in the Shares.

The Debt Restructuring Agreement will constitute a connected
transaction under the Listing Rules and will be subject to
Independent Shareholders' approval. A Circular containing
further details of the Debt Restructuring Agreement, the advice
from the independent board committee of the Company, the advice
from the independent financial adviser of the Company and a
notice convening a special general meeting of the Company will
be sent to the Shareholders as soon as possible.

The Directors also propose to increase the authorized share
capital of the Company to HK$400,000,000 by the creation of an
additional 3,000,000,000 ordinary Shares of HK$0.10 each.

Introduction

The Board refers to the Company's Previous Announcements in
relation to a possible debt restructuring of the Group. As
previously announced on 12 April 1999, the Group was in the
process of preparing a debt restructuring proposal. The
Directors are pleased to announce that the Debt Restructuring
Agreement has been entered into between the Obligors (including
the Company), the Syndicate Agent, the Agent, the Coordinator,
the Security Trustee, the Steering Committee and the Financial
Creditors on 17 July 2001.

Debt Restructuring Agreement

Date: 17 July 2001

Parties: The Company, the other Obligors, the Syndicate Agent,
the Agent, the Coordinator, the Security Trustee, the Steering
Committee and the Financial Creditors

Amount of debt as at 17 July 2001 to be restructured:
approximately HK$660 million

Restructuring of (i) Approximately HK$360 million Rescheduled
Debt; and debts by way of:

(ii) HK$300 million of Convertible Notes consisting of (a)
HK$50 million Series A Convertible Notes due 2006 and (b) HK$250
million Series B Convertible Notes due 2006.

The amount of debts of approximately HK$660 million to be
restructured under the Debt Restructuring Agreement is about the
total amount of all bank borrowings and the existing convertible
notes as shown in the 2000 annual report of the Company.

The Rescheduled Debt and Convertible Notes are secured by a
debenture executed by the Company in favor of the Financial
Creditors. Under the debenture, the Financial Creditors have
been granted a security over all the non-current assets and
undertakings of the Group. A circular containing further
information on the Rescheduled Debt including the details of the
assets will be dispatched by the Company to the Shareholders
following the release of this press announcement as soon as
practicable.

Principal Terms of Repayment of the Rescheduled Debt

Pursuant to the Debt Restructuring Agreement, the Company should
repay the Financial Creditors the Rescheduled Debt in twenty
quarterly installments. The amounts of principal repayment of
the Rescheduled Debt for each of the first, second, third,
fourth and fifth four quarterly installments are approximately
HK$7.5 million, HK$12.5 million, HK$15 million, HK$17.5 million,
and 25 million respectively. Such principal repayment should be
paid at three-monthly intervals commencing on the first
anniversary of the date of Closing. In addition to the aforesaid
principal repayment installment, the Company is required to make
the following additional reduction payments towards the
reduction of the Rescheduled Debt:

     (i) Cash surplus as determined by an independent reporting
accountant and/or the Agent on a quarterly basis;

     (ii) Net proceeds from the disposal of any Non-core Assets
including, among other things, the investment properties, the
equities investment and excessive production facilities of the
Group including (without limitation) the disposal of the Group's
properties in Dongguan, Pinghu and Tianjin in the PRC, details
of which will be included in the Circular;

     (iii) 40 percent of the net proceeds from any issue of new
Shares; and

     (iv) Net proceeds from any debt financing.

The above-mentioned additional reduction payments towards the
reduction of the of the Rescheduled Debt will be distributed in
the following order of application:

     (i) Default interest then payable, if any;

     (ii) Interest payable by the Company on the Rescheduled
Debt which is attributable to the HIBOR element;

     (iii) The next minimum reduction installment;

     (iv) The minimum reduction installments in the inverse
order of maturity;

     (v) Interest accrued up to and including the date of
distribution which is attributable to the Margin element;

     (vi) The redemption of Convertible Notes.

The period between the date of Closing and the Final Repayment
Date is divided into successive interest periods (Interest
Periods), the first and second of such Interest Periods are of
three months' duration and all subsequent Interest Periods are
of one month's duration. Interest on the Rescheduled Debt for a
particular Interest Period shall accrue at a rate that equals to
the sum of HIBOR for the corresponding Interest Period plus a
1.5 percent (flat rate) margin per annum. The Company should pay
that part of such accrued interest representing interest
calculated at HIBOR on the last day of each Interest Period.
That part of such accrued interest (Deferred Accrued Interests)
represents interest calculated at the margin of 1.5 percent per
annum will be deferred and paid by the Company on the
Termination Date.

Assuming there are full conversions of the Convertible Notes by
the Financial Creditors and the successful repayment of all the
twenty quarterly installments and the Deferred Accrued
Interests, there will be no outstanding debt for the Company in
so far as the Rescheduled Debt is concerned. In the case of the
Financial Creditors choose not to make any conversion of the
Convertible Notes at maturity, the repayment of the debt arising
from the Convertible Notes will then be negotiated between the
Company and the Financial Creditors.

Principal Terms of the Convertible Notes

Issuer: The Company

Principal Amount: Series A Convertible Notes - aggregate
principal amount of HK$50,000,000

Series B Convertible Notes - aggregate principal amount of
HK$250,000,000 (consisting of four sub-series: Sub-Series I
Convertible Notes of HK$12,500,000, Sub-Series II Convertible
Notes of HK$17,500,000, Sub-Series III Convertible Notes of
HK$32,500,000 and Sub-Series IV Convertible Notes of
HK$187,500,000).

Maturity Date: The fifth anniversary of the Issue Date.

Interest: 1 percent (flat rate) per annum payable monthly in
arrears.

Conversion Price: Series A Convertible Notes - HK$0.25 per
Share.

Series B Convertible Notes - HK$0.375 per Share or the market
price per Share at the respective excisable date whichever is
lesser subject to a minimum price equal to the nominal value of
a Share.

(Note: Both conversion prices are subject to adjustment upon
occurrence of certain events, including consolidation,
subdivision, capital distribution, rights issue, issue of Shares
or issue of convertible securities.)

In the event of default, the conversion price for both Series A
Convertible Notes and Series B Convertible Notes will be equal
to the lesser of HK$0.10 per Share or the then nominal value of
a Share.

Conversion Period: Series A Convertible Notes:

     - From the Issue Date and ends at 4:00 p.m. on the day 10
business days before the Maturity Date.

Series B Convertible Notes:

     - Sub-Series I Convertible Notes - from the 1st anniversary
of the Issue Date

     - Sub-Series II Convertible Notes - from the 2nd
anniversary of the Issue Date

     - Sub-Series III Convertible Notes - from the 3rd
anniversary of the Issue Date

     - Sub-Series IV Convertible Notes - from the 4th
anniversary of the Issue Date

and in each case ends at 4:00 p.m. on the day 10 business days
before the Maturity Date.

Redemption at the The Convertible Notes may be redeemed at the
option of the option of the Issuer: Company, in an amount equal
to the integral multiple of HK$1,000,000 and at the redemption
premia set out below, on a quarterly basis, and pro rata
interest shall be paid on the Convertible Notes so redeemed.

Redemption Date Redemption Price
(falling within)

1st year 101.5% to 106%
2nd year 106% to 112%
3rd year 112% to 118%
4th year 118% to 124%
5th year 124% to 130%

Series B Convertible Notes shall be redeemed before the Company
may redeem any of the Series A Convertible Notes. In addition,
Sub-Series IV Convertible Notes, Sub-Series III Convertible
Notes, Sub-Series II Convertible Notes and Sub-Series I
Convertible Notes may only be redeemed strictly in that order.

Neither the Company nor its affiliates may purchase the
Convertible
Convertible Notes: Notes at any price at any time whilst any of
the Rescheduled Debt remains outstanding. The Convertible Notes
may be transferred at any time after its issue in accordance
with the provision of the terms and conditions of the
Convertible Notes. The Company undertakes to promptly notify the
Stock Exchange upon becoming aware of any dealing in the
Convertible Notes by connected persons.

Listing: No application will be made for the listing of, and
permission to deal in, the Convertible Notes on any stock
exchange. The Company will apply to the Stock Exchange for the
listing of, and permission to deal in, the Shares to be issued
upon conversion of the Convertible Notes.

Ranking: The Conversion Shares will rank pari passu in all
respects with all other Shares in issue on the date of
conversion.

Lock-up Period: There will be no lock-up period for the shares
issued subject to the Convertible Notes.

The conversion price of HK$0.25 per Share for Series A
Convertible Notes represents:

     - a premium of approximately 273 percent to the closing
price of HK$0.067 per Share as quoted on the Stock Exchange on
18 July 2001, being the trading date immediately preceding the
date of this announcement;

     - a premium of approximately 273 percent to the average
closing price of approximately HK$0.067 per Share on the 5
trading days up to and including the date of this announcement;
and

     - a premium of approximately 273 percent to the average
closing price of approximately HK$0.067 per Share on the 10
trading days up to and including the date of this announcement.

The conversion price of HK$0.375 per Share for Series B
Convertible Notes represents:

     - a premium of approximately 460 percent to the closing
price of HK$0.067 per Share as quoted on the Stock Exchange on
18 July 2001, being the trading date immediately preceding the
date of this announcement;

     - a premium of approximately 460 percent to the average
closing price of approximately HK$0.067 per Share on the 5
trading days up to and including the date of this announcement;
and

     - a premium of approximately 460 percent to the average
closing price of approximately HK$0.067 per Share on the 10
trading days up to and including the date of this announcement.

Full conversion of the Convertible Notes (in the case of the
Series A Convertible Notes, at a price of HK$0.25 per Share, and
in the case of the Series B Convertible Notes, at a price of
HK$0.375 per Share) will lead to the issue of approximately 867
million new Shares, representing 150% of the existing issued
share capital of the Company and approximately 60% of the issued
share capital of the Company as enlarged by the Shares to be
issued upon full exercise of the rights of conversion attaching
to the Convertible Notes.

Allocation of Convertible Notes

Under the terms of the Debt Restructuring Agreement, the
allocation of Convertible Notes to the Financial Creditors for
the partial repayment of the Group's indebtedness owing to them
will be made on a pro-rata pari-passu basis in relation to their
respective individual exposure as at the Closing Date.

Conditions

Completion of the Debt Restructuring Agreement is conditional
on, among other things, the following conditions being satisfied
or waived on or before 17 September 2001 (or such later date as
the Company and the Financial Creditors may agree in writing):

     (i) the passing by the Shareholders of resolutions at a
special general meeting of the Company approving the Proposed
Debt Restructuring, the issue of the Convertible Notes and any
Shares falling to be issued and allotted upon exercise of the
conversion rights attached to the Convertible Notes and the
increase in the Company's authorized share capital;

     (ii) Legal opinions from legal counsel (in Hong Kong and
all relevant overseas jurisdictions) in form and substance
acceptable to the Agent and the Security Trustee regarding the
registration, validity and enforceability of the Debt
Restructuring Agreement and other rescheduling documentation as
required in the Debt Restructuring Agreement and other
rescheduling documentation as required in the Debt Restructuring
Agreement, and the due incorporation in respect of each of the
Financial Obligors, from a firm of solicitors or counsel
acceptable to the Agent and the Security Trustee;

     (iii) a copy of the letter from the Bermuda Monetary
Authority to the Company or its legal advisers granting
permission to the Company for the issue of the Convertible Notes
and of new Shares in the capital of the Company upon the
exercise in full of conversion rights attaching to the
Convertible Notes up to the maximum number of new shares which
would be required to be allotted and issued by the Company were
conversion rights attaching to all Convertible Notes to be
exercised in full;

     (iv) a copy of the letter from the Stock Exchange to the
Company granting approval for, inter alia, the listing of, and
permission to deal in the new shares in the capital of the
Company upon the exercise of conversion rights attaching to the
Convertible Notes up to the maximum number of new Shares which
would be required to be allotted and issued by the Company were
conversion rights attaching to all Convertible Notes to be
exercised in full, such approval to be unconditional save for
the usual conditions imposed by the Stock Exchange requiring the
production by the Company to the Stock Exchange of routine
documentation and written confirmations from the Company to the
Stock Exchange (if any);

     (v) an original letter from the Executive Director of
Corporate Finance Division of the Securities and Futures
Commission or his delegate confirming that for the purposes of
the Takeover Code, the Financial Creditors are not considered to
be acting in concert with each other solely by reason of their
having agreed to enter, or their having entered, into this
Agreement;

     (vi) a copy of the cash flow statement showing the
projected cash flow for the 12 months from 1 October,
2001prepared by the Company and verified by an independent
reporting accountant;

     (vii) a plan/program for the disposal of the Non-core
Assets (as defined in the Debt Restructuring Agreement), which
includes (without limitation) the timetable for disposal and the
estimated value of each of such Non-core Assets, in such details
and form satisfactory to the Agent and the Security Trustee; and

     (viii) the settlement of various outstanding fees including
the fee for the execution of Standstill and Debenture, fee for
the arrangement of Debt Restructuring Agreement, fee for the
engagement of the Security Trustee, fee for the engagement of
the Liaison Bank and fee for the engagement of the Syndicate
Agent with the Agent, the Steering Committee, the Co-ordinator,
the Security Trustee, the Syndicate Agent and the Financial
Creditors prior to the Closing.

If the above (and all other) conditions are not satisfied or
waived by 17th September, 2001, the Debt Restructuring Agreement
will terminate, whereupon any Financial Creditor will be
entitled to immediate repayment of any indebtedness owed to it
pursuant to the relevant existing documentation.

An application has been made to the Executive director of the
Corporate Finance Division of the SFC and any delegate of the
Executive director for the confirmation letter as stated in the
condition (v) above.

Termination

Under the terms of the Debt Restructuring Agreement, the Agent
may give written notice to the Obligors to demand repayment of
the full amount of the Rescheduled Debt (and any other amounts
then payable) and terminate the Debt Restructuring Agreement if,
among other things, any of the following events occur before the
Rescheduled Debt is fully repaid:

      (i) Failure by the Company to pay in full on the due date
(or within 30 days thereof on the first occasion of such
failure; or within 15 days thereof on the second occasion of
such failure; or within 5 days on any subsequent occasion of
such failure) any sum payable under the terms of the Debt
Restructuring Agreement (including, without limitation, any
minimum principal repayment or interest) in the manner required
by the Debt Restructuring Agreement;

     (ii) Any Obligor suspending or threatening to suspend all
or a substantial part of its operations for more than 30 days;

     (iii) On the vote of the majority Financial Creditors; (a
group of Financial Creditors then representing more that 66 2/3
percent of the aggregate by Rescheduled Debt.);

     (iv) Any member of the Group ceases to be a subsidiary
(whether held directly or indirectly) of the Company; or

     (v) Any event of default occurs under the terms and
conditions of the Convertible Notes. Details of the event of
default will be noted in the Circular and which will be
dispatched by the Company to the Shareholders following the
release of this press announcement as soon as practicable.

Existing Noteholders

China Power Investment Limited and BancBoston Investments Inc.
are the holders of US$7 million and US$5 million principal
amount of 9 percent convertible notes issued by the Company on
21 July 1998 and 13 August 1998 respectively with a due date on
the third anniversary of the issued date, convertible at a price
of HK$1.65 per Share into 56,316,363 Shares. Both of China Power
Investment Limited and BancBoston Investments Inc. are parties
to the Debt Restructuring Agreement, and the principal amount of
their existing convertible notes (together with all interest
accrued thereon) will be treated pari passu with the
indebtedness owing to each of the other Financial Creditors.

None of the Financial Creditors currently have any shareholding
interest in the Company. Each of the Financial Creditors will
hold less than 35 percent of the enlarged issued share capital
of the Company immediately following Closing.

Of all the Financial Creditors, Standard Chartered Bank has the
largest amount of indebtedness owing to it. Given the principal
amount of Notes to be issued upon Closing to Standard Chartered
Bank, in the event that it were to exercise in full the
conversion rights attaching its Notes, and on the assumption
that no other Financial Creditor were to exercise any rights of
conversion, Standard Chartered Bank would hold more than 35
percent of the total voting rights attaching to Shares.

In this event, unless it separately obtains a waiver or
whitewash approval from the SFC, Standard Chartered Bank would
be required to make a mandatory offer under the Code for all of
the Shares not already owned by it and by parties acting in
concert with it.

The shareholding of all the Financial Creditors except for
Standard Chartered Bank's shareholding in the case of scenario 6
would not exceed 10 percent of the fully diluted share capital
in all of the above scenarios.

Standstill During The Pre-Closing Period

On the terms of the Debt Restructuring Agreement, the Financial
Creditors have agreed that they will not make demand or further
demand (as the case may be), accept payment or commence or
continue or pursue legal proceedings, or enforce any security,
or counterclaim in relation to the Existing Facilities in terms
of the Standstill Letter during the period commencing from the
first business day falling after the date on which the Debt
Restructuring Agreement has been signed by all the parties and
the Coordinator has received from the Company certain documents,
letters, resolutions and certificates referred to in the Debt
Restructuring Agreement.

Reasons For The Restructuring

The Debt Restructuring Agreement will allow the Group to
reschedule the repayment of part of its debts due to the
Financial Creditors over the next six years while at the same
time avoiding immediate and material dilution to Shareholders'
interests. The Convertible Notes bear only 1 percent interest
per annum and payment of part of the interest accrued (the 1.5
percent p.a. margin) on the Rescheduled Debt will be deferred
until the last payment of the principal repayment at the end of
year six.

Such interest payment arrangement should allow the Group to
direct more cash resources to its business operation and
principal debt repayment.

Furthermore, the restructuring of certain existing debt into the
Convertible Notes will reduce the interest expense of the Group,
which will in turn have a positive effect on the Group's
earnings and net asset value.

Future Plans And Prospect

The Group will continue to consolidate its core business of
manufacturing antennae and car-related consumer products. The
Directors believe that demand for the Group's core products
remain strong and the Group's re-positioning to focus on the
core line of business should provide it with more favorable
business opportunities. There will be no material change of
directors and the senior management after the Closing.

As most of the Group's Non-core Assets situated in the PRC, with
the accession of China to the World Trade Organization and the
hosting of the 2008 Olympics in Beijing, it is expected that the
Group would be in a better position to dispose of its Non-core
Assets at a better price.

Increase In Authorized Share Capital

The current authorized share capital of the Company is
HK$100,000,000 comprising 1,000,000,000 Shares of HK$0.10 each.
In order to have sufficient authorized and unissued share
capital available for the future issuance of Shares including,
but not limited to, the maximum of 3,000,000,000 new Shares
which may fall to be issued pursuant to the conversion of the
Convertible Notes in full (based on the conversion price of
HK$0.10 for the Series A Convertible Notes and Series B
Convertible Notes on the occurrence of an event of default), an
ordinary resolution will be proposed at a special general
meeting of the Company to increase the authorized share capital
of the Company from HK$100,000,000 to HK$400,000,000 by the
creation of an additional 3,000,000,000 ordinary Shares of
HK$0.10 each.

Connected Transaction

A special general meeting of the Company will be convened to
obtain approval of the Independent Shareholders to, among other
things, the Debt Restructuring Agreement, the issue of
Convertible Notes and the increase in authorized share capital.
As Mr. Chang is the guarantor for some of the indebtedness owing
to the Financial Creditors, the entering into by the Company of
the Debt Restructuring Agreement and the transaction
contemplated by it will constitute a connected transaction for
the Company under the Listing Rules. The interest of Mr. Chang
in the Proposed Debt Restructuring is different from other
shareholders and Mr. Chang and his associates will therefore
abstain from voting in such special general meeting.

An independent board committee of the Company will be appointed
to advise the Shareholders in respect of the Proposed Debt
Restructuring. An independent financial adviser will be
appointed to advise the independent board committee on whether
or not the terms of the Debt Restructuring Agreement are fair
and reasonable and are in the interests of the Company and its
Shareholders taken as a whole.

General

As the Debt Restructuring Agreement is conditional upon the
fulfillment of various conditions on or before 17 September 2001
as described above, the Proposed Debt Restructuring may or may
not proceed. Shareholders should note that the issue of this
announcement does not in any way imply that the Proposed Debt
Restructuring will necessarily be implemented and completed.
Shareholders should exercise caution when dealing in the Shares.

As mentioned above, a special general meeting of the Company
will be convened to obtain, inter alia, the approval of the
Independent Shareholders for (i) the execution of the Debt
Restructuring Agreement, (ii) the creation and issue of the
Convertible Notes and (iii) the increase in the authorized share
capital of the Company. The Circular containing further details
of the Debt Restructuring Agreement, the advice from the
independent board committee of the Company, the advice from the
independent financial adviser of the Company and a notice
convening a special general meeting of the Company will be sent
to Shareholders as soon as possible.

At the request of the Company, trading in the Company's
securities was suspended with effect from 10:00 am on 19 July
2001 pending the release of this announcement. Application has
been made to the Stock Exchange for resumption of trading of
such securities with effect from 10:00 am on 20 July 2001.
Further announcements relating to material developments of the
Proposed Debt Restructuring will be made by the Company as and
when appropriate.


KEL HOLDINGS: Completes Workout, Posts HK$14.095M In Turnover
-------------------------------------------------------------
KEL Holdings Limited's Group turnover for the year ended March
31 was HK$14,095,000. This represented a decrease of 51.98
percent as compared to that of last year.

The net profit attributable to shareholders amounted to
approximately HK$33,765,000. Basic earnings per share is
approximately HK7.26 cents. During the year under review, most
of the efforts of the Group were put toward completing the debt
restructuring exercise and uplifting of all 11 licenses held
under the List of Approved Suppliers of Materials and Specialist
Contractors for Public Works under Works Bureau of The
Government of the Hong Kong Special Administrative Region (the
"Licenses").

The turnover for the year represented outstanding contracts on
hand and accordingly, segmental information is not discussed.

Prospects

The Group had been in financial difficulty and undergone debt
restructuring since last two years and the Group's operation was
significantly affected with most of the projects being
terminated or innovated. This uncertainty already faded out upon
the completion of the Schemes of the Company and two of its
subsidiaries on 10 August 2000. The Group can now concentrate
its resources on turning around its operations.

One of the Group's principal objectives was to reactivate the
Licenses, which was voluntarily suspended by the Group in 1998.
Subsequent to the balance sheet date, in May 2001, all the
Licenses were reactivated.

Following its success in debt restructuring and reactivating of
the Licenses, the Group has been submitting tenders for
electrical and mechanical (E&M) engineering and maintenance
projects in both private and public sectors. Several contracts
with total contract sums over HK$10 million have been awarded
recently.

In addition, the Group will explore the E&M engineering business
in the PRC construction market with the assistance of Deson
which has extensive connections in the PRC construction
industry. Besides, Deson is developing its business in the
design, supply and installation of intelligent building
engineering services systems which require a high level of
technicality in E&M engineering. The Group could participate
actively in such business development so as to achieve a
synergical effect.

The Directors will seek every opportunity to re-establish the
high reputation and status of the Group which it possessed in
the E&M engineering industry before. With the Group's strong
foundation and long established expertise in the E&M engineering
business and the support by Deson, the Directors believe that
the Group could turn around into sound operation in the shortest
period of time.

Auditors' Report

The Company's auditors have issued a qualified opinion arising
from limitation of audit scope and disagreement about accounting
treatment on the current year's audited financial statements
because of:

     (1) the impracticability of performing additional
procedures during the current year's audit in respect of the
financial statements for the year ended 31 March 2000, the
opinion on which was qualified on the account of limitation of
scope. The Company's auditors have been unable to ascertain
whether the opening balances of trade payables, retention money
payables, other payables, deposits received and accruals, gross
amounts due to contract customers and accumulated losses as at
31 March 2000 are fairly stated and the profit and loss account
for the year ended 31 March 2001 is qualified accordingly; and

     (2) the net liabilities of the Company and the Group
discharged under the schemes of arrangement of the Company and
certain of its subsidiaries (the "Schemes") were accounted for
as a general reserve movement and recorded as part of the
shareholders' equity for the year. The Company's auditors
consider that any gain arising in respect of the net liabilities
discharged should be accounted for in the profit and loss
account for the year as required by statement 2.01 "Framework
for the preparation and presentation of financial statements"
and statement 2.102 "Net profit or loss for the period,
fundamental errors and changes in accounting policies" issued by
the Hong Kong Society of Accountants.

Corporate Update

During the year, the Group successfully completed its debt
restructuring exercise and subscription of new shares by Deson
Development International Holdings Limited ("Deson") which
involve the following:

   (a) Debt restructuring and share subscription agreement

       On 26 April 2000, the Company and certain of its
subsidiaries entered into a conditional debt restructuring and
share subscription agreement ("DRA") with Wonderland Development
Limited, the former holding company of the Company, Deson and
certain of the Group's bank creditors. The principal terms of
the restructuring proposal, which included the proposed schemes
of arrangement, involved, inter alia, the following:

         (I) a subscription for 400 million new shares in the
Company by Deson (the "Subscription");

         (II) three schemes of arrangement involving the Company
and its two subsidiaries, Kenworth Engineering Limited
("Kenworth") and Kenworth Group Limited ("Kenworth Group") under
Section 166 of the Hong Kong Companies Ordinance (the
"Schemes");

         (III) a reduction, subdivision and consolidation of the
share capital, a reduction of the share premium account and an
increase in the authorized share capital of the Company (the
"KEL Capital Reorganization");

         (IV) an issue of 40 million warrants to the
shareholders on the basis of one warrant for every new share
then held by the existing shareholders prior to the completion
of the DRA (the "Warrant Issue");

         (V) a reduction of issued share capital of Kenworth
from HK$127,400,000 to HK$1,592,500 (the "Kenworth Capital
Reduction"); and

         (VI) a convertible note issue to the scheme creditors
(the "Note Issue").

The Subscription, the KEL Capital Reorganization, the Warrant
Issue and the Note Issue were approved at a special general
meeting of the Company held on 19th July 2000. On 3rd August
2000, the KEL Capital Reorganization became effective. On 10th
August 2000, the Subscription and the Warrant Issue were
completed, the DRA became unconditional and Deson became the
Company's ultimate holding company. On 25th August 2000, the
Kenworth Capital Reduction was confirmed by the Court.

   (b) The Schemes

       Under the Schemes, for every HK$10,000 of scheme debt,
the Company, Kenworth and Kenworth Group, as appropriate, agreed
to make a cash payment to the scheme creditor in the amount of
HK$312.50 and the Company agreed to issue to such scheme
creditor 5,000 new shares of HK$0.10 each of the Company and
convertible notes in the principal amount of HK$187.50. On 3
August 2000, the Schemes became effective upon the registration
of the court order sanctioning the Schemes with the Registrar of
Companies in Hong Kong.

Closure of Register of Members

The Register of Members of the Company will be closed from 21
August 2001 to 24 August 2001 (both days inclusive) during which
period no transfer of shares in the Company will be registered.
In order to determine the identity of members who are entitled
to attend and vote at the Annual General Meeting held on 24
August 2001, all transfer of shares in the Company accompanied
by the relevant share certificates must be lodged with Tengis
Limited, the Company's Hong Kong branch share registrar, at
4/F., Hutchison House, 10 Harcourt Road, Hong Kong for
registration not later than 4:00 pm on 20th August 2001.

Charge On Assets

On 4 September 1998, the Group executed a guarantee and
debenture (the "Debenture") over all of its assets and
undertaking, subject to the existing security arrangements, in
favor of the security trustee in return for a formal standstill
arrangement amongst the participating bankers. Although the
formal standstill arrangement lapsed during the year ended 31
March 1999, the bankers participating in the Debenture are still
entitled to the benefit arising from the Debenture executed by
the Group.

Pursuant to the DRA, the Debenture will be released and
discharged upon the settlement of the Group's bank borrowings by
the Scheme Administrator under the Schemes.

Contingent Liabilities

     (a) As at 31 March 2001, Kenworth had received a claim of
approximately HK$341 million from a contract employer for the
alleged breach of a subcontract which Kenworth has not admitted.
Kenworth commenced legal proceedings subsequent to year end
against this contract employer for the outstanding contract sum
in respect of the completed work and the loss due to the
wrongful termination of the subcontract. On the basis that the
directors consider that Kenworth has valid defenses against the
claim and believe that it is not probable that any material loss
will be suffered by Kenworth, no provision has been made in the
financial statements.

     (b) On 20 December 2000, the Beijing Civil Court made a
judgment in relation to a contractual claim between Kenworth and
outside Hong Kong contract employer. According to the judgment,
Kenworth has to pay an indemnity of HK$13,100,000 to the
contract employer. Kenworth has appealed against such judgment.
The court hearing for the appeal has not yet been set as at the
date of approval of the financial statements. In light of legal
advice received, the directors consider foreign judgment cannot
be enforced in Hong Kong and that Kenworth has no material
assets situated in jurisdictions other than Hong Kong,
accordingly they consider it is not probable that any material
loss will be suffered by Kenworth, no provision has been made in
the financial statements.

Liquidity And Capital Resources

During the year, the Group successfully completed its debt
restructuring exercise, which significantly improved the Group's
liquidity position. As at 31 March 2001, the Group had total
assets of HK$19.3 million, and current liabilities, long term
liabilities and shareholders' equity of HK$8.1 million, HK$10.3
million and HK$0.9 million respectively.

The Group maintained a healthy working capital during the year,
with net current assets of HK$10.2 million as at 31 March 2001.
The Group's gearing ratio at the year end was 91.60 percent,
which was calculated based on the long term borrowings of
HK$10.3 million and long term capital of HK$11.2 million.


LEONIAN INTERNATIONAL: Faces Winding Up Petition
------------------------------------------------
The petition to wind up Leonian International Limited will be
heard before the High Court of Hong Kong on August 1, 2001 at
9:30 am. The petition was filed with the court on May 28, 2001
by Siu San Man of Room 3707, Tsz Ping House, Tin Tsz Estate, Tin
Shui Wai, New Territories, Hong Kong.


MULTI POWER: Hearing of Winding Up Petition Set
-----------------------------------------------
The petition to wind up Multi Power Limited is scheduled to be
heard before the High Court of Hong Kong on July 25, 2001 at
9:30 am. The petition was filed with the court on May 24, 2001
by Luxotica Hong Kong Limited of Unit A & B, 1/F., Kader
Industrial Building, 17-19 Lok Yip Road, On Lok Tsuen, Fanling,
New Territories, Hong Kong.


PACIFIC CENTURY: May Slash US$2.5B Bond Issue
---------------------------------------------
Pacific Century Cyberworks Limited (PCCW) may reduce the size of
its US$2.5 billion 10-year bond issue by up to US$1 billion,
South China Morning Post reported Friday.

This move may be undertaken due to market pressure and a weaker
demand for bonds in the telecommunication industry.

Earlier, the company ditched a plan to issue 30-year bonds, as
complementary to the US$2.5 10-year bonds.


PEARL ORIENTAL: Trading Suspended
---------------------------------
At the request of Pearl Oriental Holdings Limited, trading in
its shares was suspended effective 10:00 a.m. Friday 20 July
2001, pending the release of an announcement regarding the
Group's bank debts and discussions with the creditor banks.


SINOPEC CORP: Posts Balloting Results For A Shares Issue
--------------------------------------------------------
Further to the Company's announcement dated 11 July 2001,
Sinopec Corporation, also known as China Petroleum and Chemical
Corporation, and the lead manager of the A Share Issue, China
International Capital Corporation Limited held the balloting
ceremony regarding the issue of 1,540,000,000 A Shares within
the Network on the morning of 19 July 2001 at Level 6, Shanghai
New Construction Tower.

The balloting ceremony was conducted on the principle of
openness, fairness and impartiality. The balloting process and
balloting results were notarized by Shanghai Notarial Office.
The successful balloting numbers will be published in various
newspapers in the People's Republic of China on 20 July 2001.

There are 1,540,000 successful balloting numbers in this issue
and each successful balloting number may only subscribe for
1,000 shares of Sinopec Corp.


SUN LUM: Petition To Wind Up
----------------------------
The petition to wind up Sun Lum Company Limited is scheduled to
be heard before the High Court of Hong Kong on September 12,
2001 at 9:30 am. The petition was filed with the court on June
28, 2001 by Tam Shuk Yi of Flat F, 9/F., Block 3, Fu Kar Garden,
Tai Wai, Shatin, New Territories, Hong Kong.


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


BAKRIE & BROTHERS: Unit Hinders US$1.1B Debt Workout
----------------------------------------------------
PT Bakrie & Brothers' US$1.1 billion debt restructuring, which
began three years ago, is hampered by subsidiary PT Arutmine's
plan to transfer its share to its creditors, Bisnis Indonesia
reports yesterday citing President Director Irwan Sjarkawi.

Sjarkwai said that both foreign and local investors have agreed
to the debt-for-equity swap to push with the debt restructuring
for company and its subsidiaries. Though until now, Arutmine
still weighs on due to existing regulations. However, he added
that the problems of PT Arutmine could be settled by the end of
November 2001 at the latest.

Recently, foreign investors control 20 percent of PT Arutmine's
shares while the remainder is owned by local investors. The
company should have just sold the shares to its foreign
creditors to make them the majority shareholders since local
investors could not afford it due to the economy crisis.

The company is currently seeking approval from the Mines and
Energy Ministry to sell 20 percent of its shares to foreign
investors who happen to be PT Arutmine's creditors.

Sjarkawi said the company suffered a huge loss of Rp1 trillion
at the end of 2000, up from Rp758 billion over the previous
year, caused by the rupiah depreciation against the US dollar
and interest payments.

In the meantime, the company and its subsidiaries business
profits climbed 132 percent in the first quarter of 2001 to Rp20
billion from Rp6.6 billion in the same period last year.


DARYA VARIA: Widens Loss To Rp16.34 Billion
-------------------------------------------
Medical and pharmaceuticals company PT Darya Varia Laboratoria
Tbk suffers a loss of Rp16.34 billion in the first six months
this year, up from Rp3.97 billion in losses recorded in the
corresponding period last year, IndoExchage reported Friday.

The company attributed the loss to heavy non-operating expenses
that reached to Rp47.46 billion,

Foreign exchange loss amounting to Rp23.45 billion and interest
expenses of Rp8.23 billion cause such huge amount of non-
operating expenses. Rupiah depreciation influenced net interest
expenses and foreign exchange losses.

Darya Varia President Director Philip A Townsend said that
growth momentum of the company was halted by rupiah depreciation
that reached 23 percent. However, the increase in expenses was
still balanced by the effectiveness of efficiency in the
company's operational.

On the other hand, company's liabilities totaled Rp234.28
billion as of June 30, 2001, reflecting a 30.78 percent jump
from Rp179.14 billion last year. Total equity decreased by 15.62
percent, Rp153.84 billion from Rp182.32 billion in the previous
year.

Such condition resulted to a weaker capital structure, debt to
equity ratio swell to 152.28 percent by the end of June 2001
from 98.25 percent the year before.


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


DAIWA SECURITIES: Moody's Changes Rating Outlook To Negative
------------------------------------------------------------
Moody's Investors Service Wednesday changed the rating outlook
for Daiwa Securities Co., Ltd.'s (Daiwa Securities) Baa1 issuer
rating to negative from stable. The Baa1 long-term debt rating
and Baa1/Prime-2 issuer rating of Daiwa Securities SMBC Co. Ltd.
(Daiwa Securities SMBC), Baa2 long-term debt and issuer rating
of Daiwa Securities Group Inc. (DSGI) and Baa2 long-term debt
ratings of overseas subsidiaries are unaffected. The rating
outlook for Daiwa Securities SMBC and DSGI is stable.

The outlook change for Daiwa Securities reflects Moody's
increasing concern that the firm's core business lines
(including retail brokerage and asset management) are under
increasing downward pressure from declining core business
profitability.

Daiwa Securities is positioned as a key retail arm of Daiwa
Securities Group. In order to meet the changing requirements of
retail customers effectively and efficiently, Daiwa Securities
has instituted an active retail customer segmentation policy, as
part of its medium term strategy.

However, the worsening operating environment (as represented by
decreasing market turnover) has increasingly felt the impact of
liberalized brokerage commission and declining volume orders.

Furthermore, the slower than expected movement of retail flows
into capital market investment instruments continues to reveal
the substantially weaker level of earnings stability for retail
specialist firms like Daiwa Securities.

However, Moody's also notes that the firm's restructuring
efforts in 1998-1999 significantly improved the firm's cost
structure and lowered its break-even point.


SNOW BRAND: Recalls Contaminated Products Wednesday
---------------------------------------------------
Snow Brand, a dairy foods maker, recalled 16,242 boxes of
flavored ice-bars contaminated with calcium chloride Wednesday,
after a lawsuit was filed by consumers claiming Y66 million
against the company, Financial Times reported Thursday.

The report said that the six consumers who filed the case were
reportedly ill after drinking the contaminated milk last year.


TOKYO MUTUAL: Trustees Seeking Y680M In Damages Over Misconduct
---------------------------------------------------------------
The court-appointed trustees for collapsed Tokyo Mutual Life
Insurance Company are demanding payment of Y680 million in
damages from three heirs of the company's late chairman Toshio
Shibayama, Kyodo News reported Thursday.

The demand was made on charges that Shibayama committed
management misconduct.


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


DAEWOO ENGINEERING: To Get Contract To Build $237-M Plant
---------------------------------------------------------
Daewoo Engineering and Construction Company expects to sign a
deal with Nigeria's Shell Petroleum Development Company (SPDC)
to build the latter's $237 million gas plant in Cawthorne,
Nigeria, The Asian Wall Street Journal reported Friday.

In March, Daewoo Engineering entered into a provisional contract
with SPDC. The contract was later deferred by the Nigerian
National Petroleum Company (NNPC), SPDC's biggest shareholder,
citing concerns over Daewoo group's financial fix.

Meanwhile, Daewoo Engineering, which has completely spun off
from the Daewoo Group, is set to conclude its debt restructuring
program before the year`s end.


HAITAI CONFECTIONERY: Trading Suspended
---------------------------------------
The shares trading of Haitai Confectionery Company was suspended
beginning Thursday following the signing of an agreement selling
the business to the UBS-led consortium, which may result in the
delisting of the company's stock, Bloomberg reported Thursday.

However, according to the report, the suspension may only be
lifted once the company discloses its plans after the disposal
of the major unit.

Haitai Group's core confectionery-making unit was sold last
month to a consortium composed of UBS Capital Asia Pacific
Limited, J.P. Morgan Partners Asia and CVC Asia Pacific Limited
for the cash consideration of W480 billion, Bloomberg said.


HYNIX SEMICON: May Cut Capital Spending By 40%
----------------------------------------------
Hynix Semiconductor Inc. is likely to reduce its capital
spending by as much as 40 percent, or up to W800 billion, and
further downsize its production, The Asian Wall Street Journal
reported Friday.

Citing Hynix Chief Executive Park Chong Sup, the report said
the cut might be implemented because the company needs to meet
payments of W900 billion in interest on loans and bonds by the
year's end.

Hynix, in the second quarter ended June 30, sustained an
operating loss of W266 billion, swinging from a profit of W69
billion incurred in the previous quarter.


KOREA LIFE: Posts Profits Of W30 Billion
----------------------------------------
Korea Life Insurance Company posted a net profit of W30 billion
for the quarter ended June 30, The Korea Herald reported Friday.

This marks the first time the company has recorded a profit
since it began receiving public funds in November 1999.

Also, for the period, the company's net return on assets ratio
went up to 7.9 percent. Net gains from investments reached
W326.7 billion, the report said.

The return to the black is said to be attributable to the
insurer's performance under rigorous restructuring and strategic
management.


POHANG IRON: Pursuing Investment Plans Despite Market Slump
------------------------------------------------------------
Pohang Iron & Steel Company (POSCO) seems undaunted by the
current slump in the world steel market, as the company decided
to pursue its facility investment plans for the second half of
the year, The Korea Herald reported Thursday.

According to the report, the company will invest W800 billion in
49 projects within the period to set up facilities for the
production of high value products. This investment is also aimed
at improving the company's energy efficiency and environmental
protection measures.

POSCO Executive Director Yoo Byong-chang told Herald, "We are
continuing with our investment plans because we believe we must
keep upgrading our facilities in order to become more
competitive in the future when the market does recover."

Scheduled construction in the coming months will include, among
others, a stainless steel factory building, a chemical waster
control facility, structural improvement in the Gyangyang
factory, and the expansion of production capacity in Pohang.


SAMSUNG HEAVY: BG Group To Buy LNG Ships
----------------------------------------
Samsung Heavy Industries Company is selling two new liquefied
natural gas (LNG) transport ships to BG Group PLC (BRG), after
the two parties reached a deal, The Asian Wall Street Journal
reported Friday.

The ships may be sold at a price 3 percent less than the current
market capitalization of GBP9.52 billion, the report said,
citing BG Group.


SEOULBANK: DB Capital Gets Exclusive Right To Negotiate
-------------------------------------------------------
Financial authorities have decided to grant DB Capital Partners
the right to exclusively negotiate for the purchase of troubled
Seoulbank, Agence France-Presse reported Thursday, citing Public
Fund Management Committee Chairman Park Seung.

In its letter of intent, DB Capital Partners, an investment unit
of Deutsche Bank, is seeking to acquire up to 50 percent stake
in Seoulbank, the report says.

Thus, with the investment unit's intention, Deutsche Bank will
be relieved by Korea Deposit Insurance as lead-manager for
Seoulbank's stake sale.

Seoulbank was rescued from bankruptcy after the Asian financial
crisis by way of public fund infusion, now totaling W5.4
trillion.


SEOUL GUARANTEE: Gov't Still Undecided Over Fund Injection
----------------------------------------------------------
Korea's Public Fund Management Committee has remained undecided
regarding its proposal to inject W600 billion of public funds
into Seoul Guarantee Insurance Company (SGIC), AFX reported
Wednesday.

The injection of additional public fund is supposed to cover
SGIC guarantees to bonds of insolvent Samsung Motors
Corporation, the report said.

Meanwhile, the committee has given the go-signal to the transfer
of public funds worth W5 trillion to SGIC as coverage for
guarantees given to investment trust institutions.


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


AVENUE ASSETS: Enters Supplemental Deal With Genting Daya
---------------------------------------------------------
Avenue Assets Berhad (AAB) and Genting Daya Sdn. Bhd. (SPV), a
special purpose vehicle formed for the purpose of assuming the
debts novated by Allied Avenue Assets Securities Sdn Bhd (AAA)
pursuant to the debt restructuring exercise of AAA, entered on
19 July 2001 into a third supplemental put and call option
agreement for the purpose of the Proposed Acquisition of AAA
Debt Instruments (Supplemental Agreement).

Pursuant to the Supplemental Agreement, AAB shall have the right
to exercise the call option within the period commencing on 20
November 2000 (being the completion date of the AAA
Subscription) and ending twelve months thereafter.

The SPV shall have the right to exercise the put option during
the one-month period commencing immediately after the expiry of
the call option period.


JOHOR CITY: Defaults On Principal, Interest Payment
---------------------------------------------------
Damansara Realty Berhad (DBHD, the Company) announced Johor City
Development (JCD) a wholly-owned subsidiary of Johor Corporation
(JCorp) defaulted in its first principal repayment of
RM76,000,000 and interest servicing obligation of approximately
RM6,700,000 under the RM400 million Credit Facilities which were
payable on 18 July 2001.

Details are set out below:

1. Background

On 12 January 2000, DBHD entered into a Share Subscription
Agreement (SSA) with JCD, for JCD to subscribe to 400,000,000
"B" Redeemable Convertible Cumulative Preference Shares (RCCPS)
of RM0.01 each at an issue price of RM1.00 each in Damansara
Town Centre Sdn. Bhd. (DTCSB), a wholly owned subsidiary of
DBHD.

Simultaneously, the Company and DTCSB had also entered into SSAs
with JCorp, Malaysian National Insurance Berhad and Takaful
Nasional Sdn. Bhd. for the relevant parties to subscribe to
187,000,000, 37,000,000 and 13,000,000, "A" RCCPS of RM0.01 each
at an issue price of RM1.00 each in DTCSB, respectively.

All the subscriptions were for cash. The proceeds from the
subscription of the "A" and "B" RCCPS amounting to
RM637,000,000, were then on-lent to DBHD on 18 January 2000 for
the repayment of principal and interest of approximately RM566
million owing to Employees Provident Fund Board (EPF) by DBHD
(collectively known as Interim Financing).

The Interim Financing exercise was part of the ongoing
restructuring exercise of DBHD. The proposed reconstruction and
restructuring exercise of DBHD, involves, inter-alia, the
proposed acquisition of the entire equity interest in JCD by a
new company (Newco) to be incorporated. Subsequently, the Newco
will assume the listing status of DBHD.

Subsequent to the subscription of "A" RCCPS by JCorp, 10,000,000
of the "A" RCCPS have been disposed off to Archipelago Fund, a
closed-end fund incorporated in Luxembourg on 10 July 2000.

To procure the funds for the subscription of "B" RCCPS, JCD had
obtained a Bank Guarantee Facility ("BG Facility") from a
syndicate of ten (10) banks (BG Banks) as set out in the Bank
Guarantee Facility Agreement dated 5 January 2000 (BG Facility
Agreement).

Under the said BG Facility Agreement, the BG Banks had granted
to JCD a BG Facility of a maximum aggregate principal amount of
United States Dollar equivalent to RM400,000,000 upon terms and
subject to conditions of the BG Facility Agreement whilst DBHD
was a joint obligor for the said BG Facility.

Secured against this BG, JCD had issued a RM100 million nominal
amount of 7.15 percent Guaranteed Fixed Rate Serial Bonds, up to
RM235 million nominal amount of Guaranteed Revolving
Underwritten Notes Issuance Facility and obtained a Guaranteed
Fixed Rate Loan of RM76 million from a local financial
institution (collectively known as Credit Facilities). The
structure of the Credit Facilities under the BG Facility is set
out in Table 1.

Under the BG Facility Agreement and relevant agreements relating
to the Credit Facilities, JCD undertakes to repay the Credit
Facilities by way of amortization program (as set out in Table
2) and consequentially the amount of the BG issued shall be
reduced accordingly. The first principal repayment under the
amortization program was due on 18 July 2001 amounting to RM76
million.

In consideration for the BG Banks granting the BG Facility,
JCD/DBHD were required to execute the relevant Security
Documents in favor of the BG Banks, which constitutes, inter-
alia, the following securities:

     (a) second legal charge following the provisions of the
National Land Code over land measuring approximately 9.5 acres
in area and held under the titles known as Geran 10474 for Lot
No. 8345 and Geran 25354 (formerly Certificate of Title No.
22071) for Lot 4541, both situated in the Mukim of Kuala Lumpur,
Daerah Wilayah Persekutuan together with buildings erected
thereon (widely known as Damansara Town Centre)(DTC Property) in
favor of the Security Trustee as trustee for the benefit of the
BG Banks. Currently, DBHD is the owner of DTC Property pursuant
to the Property Sale Agreement dated 7 January 1993 between
Pusat Bandar Damansara Sdn. Bhd., Bungsar Hill Holdings Sdn.
Bhd. and DBHD (DTC SPA);

(b) an Assignment of the DTC SPA (DTC SPA Assignment) dated 24
December 1997 whereunder DBHD has assigned all of its right,
title and interest arising from the SPA in favor of the Security
Trustee as trustee for the benefit of the BG Banks; and

     (c) an Assignment of an Agreement dated 3 July 1999 for the
sale of land measuring approximately 21,438 square meters in
area and held under the titles known as Geran 44587 Lot No.
14530 Township and District of Johor Bahru, State of Johor
together with a commercial complex comprising of a three (3)-
storey retail podium with a twenty two (22)-storey office tower
(KOMTAR Property) by JCorp to JCD, ("the KOMTAR SPA Assignment")
whereunder JCD has assigned all of its right, title and interest
arising from the KOMTAR SPA in favor of the Security Trustee as
trustee for the benefit of the BG Banks.

In addition to the above security arrangement, pursuant to the
Put Option Agreement between JCD, DBHD, Societe Generale, Labuan
Branch (as the Security Trustee), and JCorp dated 5 January 2000
(Put Option Agreement), in consideration of each of the BG Banks
and JCD and DBHD entering into the Bank Guarantee Facility
Agreement at the request of JCorp and further in consideration
of RM10.00 paid to JCorp, it is agreed that the Security Trustee
shall have the option (Option), at the absolute discretion of
the Security Trustee, by delivery of an Exercise Notice by the
Security Trustee to JCorp at any time during the Option Period,
exercisable in the manner stated in clause 2.2 of the Put Option
Agreement, to require JCorp to purchase the DTC Property and the
KOMTAR Property collectively or either of the said properties
(Subject Properties) upon the terms and subject to the
conditions of the Put Option Agreement.

Upon the exercise of the Option, an agreement shall be
constituted whereunder JCorp is bound and shall purchase the DTC
Property and/or the KOMTAR Property as a treaty sale at the
agreed price (the higher of the amount equal to the amount
outstanding under the BG Facility Agreement or the highest
valuation amount of the Subject Properties valued on a "willing-
buyer willing-seller" basis, as independently valued by three
(3) valuers selected and appointed by the Security Trustee) on
the terms and conditions of the Put Option Agreement.

In addition to the above security arrangement and pursuant to
the Put Option Agreement and other relevant security documents,
both JCD and DBHD had executed Powers of Attorney in favor of
the Security Trustee, inter alia, to authorize the Security
Trustee to exercise the obligations of JCD and DBHD under the
Put Option Agreement and to receive the sale proceeds to the
Subject Properties and deal with them in accordance with the
provisions of the Put Option Agreement.

2. Reasons For Default

The inability of JCD/DBHD to meet the commitment for the first
repayment principal was primarily due to the several possible
alternatives envisaged and earmarked for the first principal
repayment did not materialize due to present weak economy and
market conditions.

The failure to service the interest payment by JCD was mainly
due to lower cashflow generated from operations due to current
soft property market and depressed oil palm prices.

3. Measures Taken To Address The Default

JCD/DBHD is currently looking at various alternatives to address
the issue including to further extend the negotiations with the
BG Banks.

4. Implications In Respect Of The Default

Arising from the default, the BG Banks will have the rights to
exercise their rights under the relevant agreements constituting
the BG Facility including the security under the Put Option
Agreement. However, the financial implications have yet to be
ascertained as the BG Banks have not called for their rights
under the Security Documents and as such the full financial
implications are dependent on the actual action(s) to be taken
by the BG Banks pursuant to their rights under the BG Facility.
Furthermore JCD/DBHD is in the process to further negotiate with
the BG Banks.

Presently, the Board of Directors of DBHD has not made any
decisions on the potential implications arising from the default
on the proposed restructuring exercise of DBHD.

The default in payment constitutes an event of default under a
different agreement for indebtedness (cross default) as DBHD
provides corporate guarantees to financial institutions totaling
to approximately RM66 million for credit facilities granted to
its subsidiary.

DBHD will make periodic announcement on a monthly basis of the
status of default and the steps taken to address the default
from time to time.

Table 1

The constituents of the Credit Facilities under the BG Facility
are as follows:

                 Amount        Interest      Interest/
                  RM'000        %           Rollover Period

i) Guaranteed   *224,000     Floating     1,3, or 6 months
Revolving Under-
Written Notes
Issuance Facility
(GRUNIFs)

ii) Guaranteed  100,000       7.15% p.a.    semi-annually
Serial Bonds

iii) Guaranteed   76,000      7.20% p.a.     quarterly
Fixed Rate Loans
(FRLs)

Total          400,000



Note:

* proceeds subject to maximum of RM235 million nominal amount

Table 2

Terms of repayment / date of repayment: All of the GRUNIFs,
Serial Bonds and FRLs have a maturity period of five (5) years.
However, there is a 'program run-down' whereby all of the
facilities will have to be reduced over-time instead of 'bullet
repayments/redemption' as set out below:

GRUNIFs Serial Bonds FRLs Repayment Date
RM RM RM RM
42,000,000 19,000,000 15,000,000 76,000,000 18.07.2001
31,000,000 14,000,000 11,000,000 56,000,000 18.07.2002
17,000,000 8,000,000 6,000,000 31,000,000 18.01.2003
17,000,000 8,000,000 6,000,000 31,000,000 18.07.2003
17,000,000 8,000,000 6,000,000 31,000,000 18.01.2004
17,000,000 8,000,000 6,000,000 31,000,000 18.07.2004
83,000,000 35,000,000 26,000,000 144,000,000 18.01.2005

Total RM400,000,000


PANGLOBAL BERHAD: Gets Restraining Order Extension
--------------------------------------------------
Panglobal Berhad has obtained an extension of restraining order
for a period of four months from 16 July 2001.

The restraining order under Section 176 of the Companies Act,
1965 dated 21 September 1998 granted to Panglobal Berhad and
four (4) of its subsidiaries, namely PanGlobal Properties Sdn.
Bhd., Limbang Trading (Limbang) Sdn. Bhd., Global Minerals
(Sarawak) Sdn. Bhd. and Menara PanGlobal Sdn. Bhd, expired on 16
July 2001.

The company applied to the High Court of Malaya on 11 July 2001
for a further extension. The Proposed Scheme, which had been
approved by the Scheme Creditors, is pending approval from the
Securities Commission and Bank Negara Malaysia.

Background

The Group's principal activities include general insurance
business, extraction of logs, sawmilling and manufacturing of
veneer, coal mining, property investment and development, rental
of office and commercial premises and operation of hotel
apartments.

In early 1995 the Company underwent a restructuring as part of
which it acquired Limbang Trading Sdn Bhd which is involved in
timber extraction and related activities and Global Minerals
(Sarawak) Sdn Bhd which operates a coal mine. Both companies
operate in Sarawak. In addition, the Company acquired property
development land in Johor Bahru.

On February 2, 2000, the High Court granted a holding over
injunction to a shareholder to preserve the status quo of the
proposed Econstates disposal, the shares of which had been
pledged to an offshore bank for a loan facility granted to the
Company.

On 21 March 2000, the offshore bank gave notice that it would
force sell the shares following the expiry of the restraining
order on 20 March 2000.

On 23 March 2000, the Company was notified that the shares had
been forced sold on 22 March 2000 at RM2.00 per share.
Subsequently, on 27 March 2000, the Company was served a notice
by a shareholder that an ex parte injunction had been obtained
to restrain RBH and the offshore bank from completing the force
sale. The injunction does not involve the Company as the
Econstates shares were forced sold by the offshore bank.

In view of the action taken by the offshore bank, the SPA dated
23 September 1999 between RBH and the Company was terminated.


PILECON ENGINEERING: Trading Resumes
------------------------------------
Pilecon Engineering Berhad announces that the trading of the
Company's securities resumed 9.00 a.m., Friday, 20 July 2001.

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.


TECHNOLOGY RESOURCES: Seeking Approval On Eurobonds Haircut
-----------------------------------------------------------
Technology Resources Industries Berhad (TRI) is seeking the
approval of bondholders on its plan to repay on its outstanding
Eurobonds worth $375 million at a discount, which is proposed
under the company's debt restructuring package, The Asian Wall
Street Journal reported Wednesday, citing banking sources and
analysts.

TRI may ask bondholders regarding its plan as early as next
week, although negotiations over the terms of repayment are
currently ongoing.

According to sources close to the talks, the newspaper said, the
bondholders may likely ask TRI to repay more than the proposed
83 percent of the total principal, apart from interest and the
bonds' put premium.


YCS CORP: SC Grants Time Extension To Execute Workout
-----------------------------------------------------
YCS Corporation Berhad (YCSB) said the Securities Commission,
(SC) via its letter dated 18 July 2001, has approved the
extension of time to implement the Proposed Restructuring Scheme
for a further six months, up to and including, 21 December 2001.

Background

The Company's (YCS) early operations as a construction company
involved primarily earthworks and the construction of highways
and bridges.

Engineering activities subsequently diversified to include
construction of housing projects, commercial and industrial
buildings as well as low to high-rise office and residential
buildings, piling/foundation works, main drainage works and
other related civil engineering works. YCS is registered as a
Class A contractor, enabling it to tender for government
projects of any size.

Private corporations contribute the major portion of YCS's sales
turnover. Contracts are predominantly located within the Klang
Valley, Selangor and the southern region of Peninsular Malaysia
covering Negeri Sembilan, Malacca and Johor.

In 1999, the Company proposed a restructuring scheme involving a
capital reduction, rights issue, scheme of arrangement and
compromise repayment, acquisition of Energy Park Sdn Bhd (EPSB),
disposal of Subang Twin Business Centre, share issue and
increase in authorised share capital. Apart from the acquisition
of EPSB, the Group proposed to acquire Arau Villa Sdn Bhd
(AVSB).

The acquisition of AVSB will provide the Group with an
opportunity to maintain itself as a major property developer in
the UEP Subang Jaya area. By end of 2000, the Group has
substantially implemented the proposals under the scheme.

The Group has substantially diversified operations to property
investment holding and property development with the acquisition
of these two companies.


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


MAYNILAD WATER: Decides To Implement Gradual Rate Hike
------------------------------------------------------
Debt-laden Maynilad Water Services Incorporated, a subsidiary of
Benpres Holdings, may implement a gradual water rate hike, upon
the prodding of the Philippine government, The Business World
reported Friday.

Maynilad will implement in September starting with the rate hike
of P2 per cubic meter to help cover the company's previous
foreign exchange losses.

Further adjustments will be made in the next 18 months, as
follows: P2/cu.m. by January 1, 2002, and P3.48/cu.m. by July
2002 until December 31, 2002.

"Under this scenario, the succeeding tariff increases over the
actual basic water tariff of PhP6.58/cu.m. will be as follows:
September 1, 2001 -- plus PhP2/cu.m.; January 1, 2002 -- plus
PhP2/cu.m.; and July 1, 2002 -- plus PhP3.48/cu.m.," says
Maynilad President Rafael Alunan III.


RFM CORP: Expects Revenue Drop After Cosmos Sale
-------------------------------------------------
Once the sale of its subsidiary Cosmos Bottling Corporation is
consummated, RFM Corporation expects to post a net income of
P350 million for the year 2001, The Daily Tribune reported
Friday, citing RFM Vice President Ramon Lopez.

However, the debt-ridden company anticipates a drop in its
consolidated revenues to P12 billion, from its projection of P19
billion. This is owing to the sale of Cosmos to San Miguel
Corporation.

Last year, the company incurred a net loss of P520 million, due
to hefty foreign exchange losses amounting to P1 billion, the
newspaper said.


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


CHARTERED SEMICON: Market Slump Affects Performance
---------------------------------------------------
Chartered Semiconductor Manufacturing (Nasdaq:CHRT) (SGX-
ST:CHARTERED), one of the world's top three silicon foundries,
Thursday announced revenues and net loss for its second quarter
2001 which reflected the impact of continued severe weakness in
the end markets served by its customers, prolonged correction of
abnormally high inventories and a weakening global economic
scenario.

"The second quarter was extremely challenging for the industry
and for Chartered. In the last three quarters, the semiconductor
industry has experienced one of its sharpest decelerations and
2001 is now expected to be its worst year of contraction. Broad
weakness in end markets coupled with the extended process of
bringing inventories into balance throughout the supply chain
caused our customers to continually adjust their order levels
downward. We saw weakness in every segment and, compared to the
first quarter, the largest revenue decline was in the
communications segment," said Barry Waite, president & CEO of
Chartered.

Summary of Second Quarter 2001 Performance

     -- Net revenues were $100.7 million in second quarter 2001,
down 62.9 percent compared to $271.4 million in second quarter
2000. The significant drop in revenues was mainly due to lower
shipments to the communications and consumer segments. Including
Chartered's share of its minority-owned joint-venture company,
Silicon Manufacturing Partners (SMP or Fab 5), net revenues were
$102.4 million, down 65.8 percent from $299.6 million in the
same quarter a year ago. Compared to first quarter 2001,
Chartered net revenues were down 51.3 percent as a result of a
sharp decline in shipments to all market segments, with the
exception of the computer segment where the decline was
relatively less severe.

     -- Gross profit was negative $63.5 million, or negative
63.0 percent of net revenues, down from $94.8 million, or 34.9
percent of net revenues, in the same quarter a year ago,
primarily due to lower revenues and higher depreciation.

     -- Research and development (R&D) expenses increased by
$2.9 million from the year-ago quarter as the Company stepped up
investments in next-generation technologies and modules in
support of its strategy to provide a full suite of processes
necessary for enabling system-level integration.

     -- General and administrative (G&A) expenses decreased by
$13.1 million compared to the year-ago quarter, primarily due to
reductions in payroll and related expenses. Sales and marketing
expenses increased by $1.6 million primarily due to increased
support for customer prototyping activities.

     -- Pre-production fab start-up costs were $3.7 million in
second quarter 2001, all related to Fab 7, compared to $5.6
million mostly related to CSP (Fab 6) in the same quarter a year
ago.

     -- Equity in income of our minority-owned joint-venture
fab, SMP (Fab
5), was a loss of $25.2 million compared to a profit of $0.2
million in the year-ago quarter, primarily due to a significant
drop in the utilization rate caused by reduced demand. Minority
interest in loss of our joint-venture fab, CSP (Fab 6), was
$18.3 million compared to $10.3 million in the year-ago quarter,
primarily due to higher depreciation and low utilization.

     -- Other income was $5.5 million compared to $0.4 million
in the year-ago quarter. The increase was primarily due to grant
income related to our R&D and training activities. Net interest
income was $3.3 million compared to $8.9 million in the year-ago
quarter, primarily due to higher interest expense associated
with the convertible bond offering completed in early April.

     -- Net loss of $107.6 million, or negative 106.8 percent of
net revenues, reflected a decline of $165.5 million from a net
income of $58.0 million, or 21.4 percent of net revenues, in the
same quarter a year ago.

     -- Loss per American Depositary Share (ADS) and loss per
share (EPS) in second quarter 2001 were $0.78 and $0.08
respectively on a diluted basis, compared with a profit per ADS
and profit per share of $0.43 and $0.04 respectively in second
quarter 2000. Average diluted ADS count and ordinary share count
increased by 2.2 million and 22.6 million respectively,
primarily due to the follow-on offering in May 2000.

Wafer Shipments and Average Selling Prices

     -- Shipments in second quarter 2001 were 87.8 thousand
wafers (eight-inch equivalent), a decrease of 61.2 percent
compared to 226.2 thousand wafers (eight-inch equivalent) in
second quarter 2000 and a decrease of 47.3 percent compared to
166.4 thousand wafers (eight-inch equivalent) shipped in first
quarter 2001, due to lower demand.

     -- ASP decreased by 4.4 percent to $1,147 per wafer in
second quarter 2001 compared to $1,200 per wafer in second
quarter 2000. Compared to first quarter 2001, ASP declined 7.6
percent from $1,242 per wafer. Excluding the impact of a $3.9
million adjustment relating to prior period activity with a
specific customer, the ASP for second quarter 2001 was $1,192
per wafer, a decline of 0.7 percent and 4.0 percent
respectively, compared to the year-ago quarter and previous
quarter.

     -- Capacity utilization declined to 31 percent in second
quarter 2001 from 107 percent during the year-ago quarter and 61
percent in first quarter 2001. The decline was primarily due to
lower demand; however, a higher capacity level also affected the
utilization rate in the second quarter. Capacity increased
approximately 26 percent from second quarter 2000 to second
quarter 2001 and was slightly higher in second quarter 2001
compared to first quarter 2001.

Market Dynamics

For the twelve months ending June 30, 2001, the communications
segment continued to be the largest contributor to revenues.

Revenue Breakdown by Market Segment(a)

                                 Twelve months ending
                         Mar 31, 2001        Jun 30, 2001
---------------------------------------------------------------
Market Segment          % of Net revenues   % of Net revenues
---------------------------------------------------------------
   Communications               49                  45
   Computer                     27                  32
   Consumer                     14                  12
   Memory                       9                  10
   Other                        1                   1
---------------------------------------------------------------

(a) Including Chartered's share of its minority-owned joint-
venture    company, SMP (Fab 5)

    By region, the US continued to be the Company's largest
market.

Revenue Breakdown by Region(b)

                                Twelve months ending
                        Mar 31, 2001        Jun 30, 2001
---------------------------------------------------------------
Region                  % of Net revenues   % of Net revenues
---------------------------------------------------------------
   America                 60                  61
   Europe                  22                  19
   Asia-Pacific            14                  16
   Japan                   4                   4
----------------------------------------------------------------

(b) Including Chartered's share of its minority-owned joint-
venture company, SMP (Fab 5)

Recent Highlights and Achievements

In June, Chartered delivered to Integrated Silicon Solution,
Inc. (ISSI) the first production-ready device to utilize its
leading edge 0.13 micron, all-copper technology. Volume
production of this high-performance static random access memory
(SRAM) is expected to begin ramping in second half of this year.
Additional customer prototyping is also expected to take place
in the second half of this year. This success with ISSI
validates Chartered's ability to integrate high-performance,
high-density building blocks, thus enabling delivery of proven
manufacturing solutions to customers using system-on-chip
methods for advanced devices.

Earlier this month, Chartered announced a new low-k process for
the fabrication of next-generation integrated circuits. This
copper technology has been implemented at the 0.13-micron
technology node, where Chartered has successfully demonstrated
yield on an SRAM test vehicle.

Initially targeted at semiconductors for communications
applications such as high-performance optical networking and
broadband data transport systems, it is also expected to be well
suited for designs in computing and consumer electronics
applications. The announcement marks an important milestone
toward the successful integration of copper and advanced low-k
dielectrics, offering a proven platform for addressing the
system requirements of leading-edge applications at 0.13 micron
and below. A key deliverable of the joint development agreement
between Chartered and Agere Systems, the new technology is
scheduled for 0.13-micron manufacture as early as the first
quarter of 2002.

Review and Outlook

The Company has not yet seen signs of stabilization in the
marketplace and customer visibility remains poor. Inventory
reductions are still significantly impacting order rates, making
it more difficult to determine end-market consumption. While our
customer demands and industry modeling continue to point toward
a bottoming in the second half of this year, the exact timing
and pace of the expected recovery is difficult to predict.

Given this uncertainty, Chartered is reducing its 2001 capital
expenditure plan and is continuing to execute on a wide range of
actions to reduce cost across the organization. For example,
during the second quarter, including maintenance time, Chartered
idled its fabs for periods ranging up to twelve days. Given
forecasted utilization levels for the third quarter, Chartered
expects to continue selective idling of its fabs, while avoiding
customer disruptions, in order to reduce cost.

The Company projects the following for third quarter, based on
limited visibility:

     -- Revenues down approximately 15 percent, compared to the
second quarter

     -- Average selling price up by a few percentage points,
compared to the adjusted $1,192 second-quarter ASP

     -- Utilization in the mid-20s

     -- Gross profit margin a loss of approximately $84 million
to $86 million

     -- Loss per ADS approximately 94 to 96 cents

Based on the current assessment of semiconductor market growth
over the next two to three years, the Company has re-profiled
its start-up plan for Fab 7, its first 300mm fab. Initial
production is not expected to be required until 2003, one year
later than the prior plan. Primarily due to this change, the
Company will reduce 2001 capital expenditures to $700 million,
down $300 million from the prior plan of $1,000 million.

Solid progress has already been made on the development of 300mm
process technology with the Company having completed over three-
fourths of the necessary unit process "recipes." This work will
continue through completion, and Chartered retains the
flexibility to accelerate the Fab 7 schedule should the market
recover more quickly than expected.

"While the industry rebound appears likely to occur later in the
year than previously expected, we remain confident in our belief
that the foundry industry can grow at a compounded annual rate
of 30+ percent this decade, driven by the increasingly
compelling economics of outsourcing and the rapid growth rate of
fabless semiconductor companies. Chartered has both the
technology momentum, as evidenced by our recent 0.13-micron
announcements, and the financial strength, as evidenced by our
strong balance sheet, cash and credit facilities of well over
two billion dollars, to remain a top-tier player in this dynamic
industry. With our core strengths becoming even more
complementary to our customers, we expect to be well positioned
when solid industry growth resumes," said Waite.

Webcast Conference Call Friday

Chartered will be discussing its second-quarter results and
third-quarter outlook on a conference call Friday, July 20,
2001, at 8:30 a.m. Singapore time (US time 5:30 p.m. PT/8:30
p.m. ET, July 19, 2001). A webcast of the conference call will
be available to all interested parties on Chartered's Web site
http://www.charteredsemi.com,under Investor Information,
Releases & Confcalls.

Mid-Quarter Guidance

The Company provides a guidance update midway through each
quarter. For the third quarter, the Company anticipates issuing
its mid-quarter guidance update, via news release, on Friday, 31
August, Singapore time.

About Chartered

Chartered Semiconductor Manufacturing is one of the world's top
three silicon foundries. The Company's business model is
distinguished by its strategy to build trusted long-term
relationships, where manufacturing is part of a larger customer-
service focus that includes joint development and implementation
of new process technologies supporting novel applications within
the broad communications market. Chartered operates five
semiconductor fabrication facilities at its Singapore
headquarters, with a substantially completed sixth fab that is
in the process of being equipped as a 300mm facility.

A Company with both global presence and perspective, Chartered
is traded on both the Nasdaq Stock Market in the United States
(Nasdaq:CHRT) and on the Singapore Exchange Securities Trading
Limited in Singapore (SGX-ST:CHARTERED). The Company reported
2000 revenues of over US$1.1 billion. More than 4,300 Chartered
employees are based at 11 locations around the world.
Information about Chartered Semiconductor Manufacturing can be
found at http://www.charteredsemi.com.


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


NAMPRASERT CONSTRUCTION: Reorg Petition Filed With Court
--------------------------------------------------------
The Petition for Business Reorganization of Namprasert
Construction Company Limited (the Debtor) was filed to the Civil
Court:

   Black Case Number Lor.Phor. 5/2542

   Red Case Number Phor. 9/2542

Petitioner: Namprasert Construction Co.Ltd: debtor

Planner: Ferrier Hodgson Co. Ltd

Debts Owed to the Petitioning Creditor: Bt1,808,759,623.94

Date of Court Acceptance of the Petition: April 30,1999

Court Order for Business Reorganization and Appointment of
Planner: June 9, 1999

Number of creditors filing Applications for Debt Repayment: 277

Amount of debts: Bt2,318,279,148.74

Regarding this matter, the creditors' meeting passed a special
resolution accepting the above amended plan and a resolution
establishing the creditors' committee which is comprised of:

   1. AYUDHYA BANK PUBLIC CO., LTD.

   2. BANGKOK BANK PUBLIC CO., LTD.

   3. SIAM CEMENT PUBLIC CO.,LTD.

   4. SATTANASIN BANK PUBLIC CO., LTD.

   5. KRUNGTHAI BANK PUBLIC CO., LTD.

   6. BANK THAI PUBLIC CO., LTD.

The Court issued an order accepting the reorganization plan:
March 2, 2000

Appointment Date of the Meeting of Creditors for Amendment the
Plan on May 17, 2001 at 9.30 a.m. Thammasat Convention Hall, Soi
Sathorn 1, South Sathorn Road: Last Update

Contact: Mr.Thanawat, Tel. 6792525 ext. 123


QUALITY HOUSES: No Warrants Converted
-------------------------------------
Quality Houses Public Company Limited had announced information
regarding exercise of warrants (QH-W2) by using electronics
media (R-SIM) in order for the warrant holders to exercise their
warrants. The date for conversion of warrants to common shares
no. 2 was July 19, 2001.

Quality Houses Director Suwanna Buddhaprasart announced that
there was no warrant conversion made by the warrant holders. As
the result, there are still 329,999,942 remaining warrants.


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
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delivered via e-mail. Additional e-mail subscriptions for
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subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 301/951-6400.

                      *** End of Transmission ***