---

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

                   A S I A   P A C I F I C

            Tuesday, July 24, 2001, Vol. 4, No. 143


                         Headlines


A U S T R A L I A

AUSTRALIAN MAGNESIUM: Beattie Calls For White Knight
AUSTRALIAN MAGNESIUM: Withdraws Global Share Offer
AUSTRALIAN MAGNESIUM: Normandy Awaits Review Outcome
AUSTRALIAN MAGNESIUM: Reinstated To Official Quotation
INTERNATIONAL CONTRACT: Seeks Appointment Of Receiver
MT ENTERTAINMENT: Babcock & Brown Changes Holding
NORMANS WINES: Talks With Xanadu Terminated
PASMINCO LIMITED: Chairman Rayner Writes Re Restructuring


C H I N A   &   H O N G  K O N G

CIL HOLDINGS: Posts HK$254.65M In Operations Loss
CLIMAX INTL: Fung Resigns As Executive Director
CROWN ASSETS: Winding Up Petition Set For Hearing
FU HUI: Trading Suspended Pending Workout Deal
ROMAX (HONG KONG): Faces Winding Up Petition


I N D O N E S I A

BANK CENTRAL: Bapepam Suspects Manipulation Of Shares


J A P A N

AIWA COMPANY: Seeks Parent Firm's Financial Aid
DAIWA SECURITIES: Plans To Pull Out Of Pension Fund


K O R E A

DAEWOO HEAVY: 2002 Debt Workout Completion Likely
DAEWOO SHIPBUILDING: To Walk Out Of Workout Next Month
DAISHIN LIFE: Sale To Commence This Week
HYNIX SEMICON: To Move Stake In Investment Arm To KEB
HYUNDAI ENGINEERING: Breaking Group Ties Aug. 1
HYUNDAI HEAVY: Profit Forecast Realization Unlikely
KOHAP CORP: Creditors Move To Divide Company Into Units
SAMSUNG ELECTRONICS: Downgrades Target Profit


M A L A Y S I A

GADEK CAPITAL: FIC Approves Proposed Workout
LIEN HOE: Reports Defaults Status
MALAYSIAN RESOURCES: Bank Negara OKs Talks With Utama
UH DOVE: Units Disposes Stake In How Wah Genting


P H I L I P P I N E S

MUSIC CORP: Faces Suspension For Delay Of Report
NATIONAL POWER: Partially Terminates Contracts With Mirant


S I N G A P O R E

ASIA PULP: To Continue Bond Payments To Units' Creditors


T H A I L A N D

ADVANCE AGRO: Moody's Downgrades Rating To `Caa3'
KRISDAMAHANAKORN: Reports Progress Of Rehab Plan
NEP REALTY: Reports Debt Workout Of Affiliate
PANJAPOL PULP: Reorg Plan Transferred To Bankruptcy Court


     -  -  -  -  -  -  -  -

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


AUSTRALIAN MAGNESIUM: Beattie Calls For White Knight
----------------------------------------------------
Queensland Premier Peter Beattie is appealing for an investor
for Australian Magnesium Corporation (AMC), whose $1.3 billion
mining operation is on the verge of collapse, The Age reported
Monday.


AUSTRALIAN MAGNESIUM: Withdraws Global Share Offer
--------------------------------------------------
The Australian Magnesium Corporation Limited (AMC) global equity
offer of $680 million for the Stanwell Magnesium Project has
been withdrawn.

AMC will now pursue alternative financing options to develop
this world-class project.

AMC will work with its debt and equity syndicate on a revised
funding package for the development of the Stanwell Magnesium
Project and to realize the value of the substantial assets that
remain in place. These include the:

     * $932 million senior debt package with ABN AMRO Bank NV,
Westdeutsche Landesbank Girozentrale, ANZ Investment Bank and
JPMorgan;

     * $175 million State and Federal government commitment to
infrastructure development in central Queensland and to ongoing
research and development funding;

     * 10 year magnesium supply contract with the Ford Motor
Company;

     * 15 year energy supply contract with Stanwell Corporation
Limited;

     * proprietary, low cost and environmentally leading
magnesium processing technology;

     * environmental and construction permits; and

     * outstanding and committed project and operational teams.

AMC Chairman, Dr J Roland Williams said, "AMC received strong
support from key Australian institutional investors and the
retail investment community. However, the combination of the
current state of world financial markets and our timing
requirements resulted in the level of demand for the offer not
meeting our expectations.

"The capital raising exercise has highlighted a number of
corporate and financial opportunities locally and abroad and
these are under consideration. We also especially wish to thank
the Queensland Government for its continuing support in our
efforts to achieve financial close and advancing the development
of the project.

"We believe the assets and expertise AMC has developed,
particularly through the demonstration plant and technical and
operating personnel, are of substantial strategic value within
the light metals industry. We will be seeking to realize this
vale through alternative funding structures."

All application monies received for the share offer and held in
trust will be refunded to investors as soon as possible.


AUSTRALIAN MAGNESIUM: Normandy Awaits Review Outcome
----------------------------------------------------
Normandy Mining Limited advises that Australian Magnesium
Corporation Limited (AMC) has withdrawn its $680 million equity
offer to complete funding for development of the Stanwell
Magnesium Project. AMC has indicated that it will seek
alternative funding strategies.

Normandy will await the outcome of this strategic review before
making any decision. The market will be fully informed as soon
as a decision is reached, says Chief Executive R J Champion de
Crespigny.


AUSTRALIAN MAGNESIUM: Reinstated To Official Quotation
------------------------------------------------------
The suspension of trading in the securities of Australian
Magnesium Corporation Limited (the Company) put in place pending
the completion of the Company's international institutional book
build, will be lifted immediately, following advice from the
Company that its global share offer has been withdrawn.

Security Code: ANM

Australian Magnesium Corporation Limited (AMC) confirms it will
seek alternative funding arrangements for the development of the
Stanwell Magnesium Project.

The key components and financial integrity of the Stanwell
Magnesium Project development continue to remain in place,
including the $932 million senior debt facility, the Ford
magnesium supply agreement, power contracts and government
endorsements.

The Company is working on alternative financing and will inform
shareholders and the market of these developments as agreements
are reached.

AMC will return all funds raised through the recent equity
offer. A letter to investors and a refund check will be issued
shortly, with a view to having all funds held in trust returned
by the end of this week.


INTERNATIONAL CONTRACT: Seeks Appointment Of Receiver
-----------------------------------------------------
On Thursday 12 July 2001, International Contract Manufacturing
Limited (ICM) (ASX: INC) requested the suspension of its shares
pending the outcome of discussions with its financiers. These
discussions have now concluded and Arlington Group Plc, ICM's
secondary lender, has indicated that it is not prepared to
provide additional funding.

Accordingly, ICM's principal lender, the National Australia Bank
Limited, has terminated the banking facilities provided to the
Company and has demanded the repayment of these facilities.

ICM is unable to repay the banking facilities, and in the
absence of any alternative funding being available, the
Directors have today requested that the secured creditors
immediately appoint a Receiver to the Company.

The Directors advise that this action has primarily been brought
about by the refusal of the Company's two major debtors to pay
amounts due for goods and services tendered, due to alleged
claims for defective products and incorrect supply of goods. The
claims were received after ICM served Letters of Demand on these
customers due to non-payment of their outstanding accounts.

The Directors strongly dispute the claims but in the absence of
sufficient cash inflow and without the support of its lenders,
the Company is unable to pay its debts as and when they fall due
and the Directors are therefore obliged to take this action.


MT ENTERTAINMENT: Babcock & Brown Changes Holding
-------------------------------------------------
Babcock & Brown Group increased its relevant interest in MTM
Entertainment Trust on 20 July 2001, from 37,629,391 ordinary
units (47.04 percent) to 38,534,761 ordinary units (48.17
percent).


NORMANS WINES: Talks With Xanadu Terminated
-------------------------------------------
Xanadu Wines Limited last Friday advised Normans Wines Limited
that the Heads of Agreement dated 26 June 2001, which provided
for negotiation of a new Implementation Agreement for the merger
of the two companies, would not be extended beyond 20 July 2001.

The merger discussions between the two companies has come to an
end.


PASMINCO LIMITED: Chairman Rayner Writes Re Restructuring
---------------------------------------------------------
Pasminco Limited Chairman M Rayner wrote to the company's
shareholders regarding the company's restructuring activities:

"I am writing to tell you about the restructuring initiatives
your Board has decided to implement to seek to address our
current financial position and ensure the company's long term
viability, thereby enhancing value for shareholders for the long
term.

Strategic Review

"As you know Pasminco has been adversely affected for some time
by a  range of factors including low zinc prices, high US$ debt
repayments and a restrictive foreign exchange option position,
all of which have combined to see our share price at
disappointingly low levels.

"Accordingly the Board has been undertaking a comprehensive
review of all assets and considering a range of options to
restructure the business and improve performance. We have been
advised during this process by UBS Warburg.

Restructuring Initiatives For Pasminco

"The Board had decided that the most compelling option is a
significant restructuring of the company, designed to solve
Pasminco's financial difficulties by refocusing the company on
its                            core lead and zinc smelting
business. The restructured company will
have more stable earnings than in the past and the potential to
grow when opportunities arise.

"To achieve this objective we have decided to sell all of
Pasminco's mining and exploration assets, other than those
related to its Tennessee USA operations. The proceeds of these
asset sales should  enable us to reduce the company's debt and
currency hedging to acceptable levels.

"Following the restructure we will retain the smelters at Budel
(Netherlands), Hobart (Tasmania), Port Pirie (South Australia),
Cockle Creek (New South Wales) and Clarksville (USA) and
Pasminco's 50 per cent interest in Australian Refined Alloys.

"The Century (Queensland), Rosebery (Tasmania) and Elura (New
South Wales) mines will be offered for sale over the next six
months and the sale of the Broken Hill mine (New South Wales)
already underway will be completed.

"The exploration division of Pasminco will be disbanded and
exploration assets sold. Head office costs will be substantially
reduced to reflect the revised asset portfolio.

"We have had a number of approaches from potential buyers with
respect to each of the mining assets and expect this interest to
heighten with the announcement of the decision to sell the
Century mine.

"Discussions are progressing with the company's principal
lenders to ensure that appropriate liquidity support is
available, if necessary, during the restructuring period and a
memorandum of intention has been signed by the lenders. This
should enable the restructuring proposals to be handled in an
orderly fashion despite or present tight cash position arising
from the historically low zinc price, our high US$ debt and our
currency hedging.

"Some asset sales will require regulatory approval and the
consent of lenders. These processes will take some time but
envisage that the sales process will commence immediately and
the restructure will be completed within twelve months.

Benefits Of The Restructure

"The Board's objective has been to ensure the restructure
provides the best possible outcome for shareholders. This
direction will address our current financial position and
provide a base from which the company can move forward with
stable earnings and growth potential.

"The restructure is expected to result in a company with a
strong balance sheet, lower gearing and manageable debt and
currency exposure.

"The assets that we are retaining will deliver a substantial
earnings stream allowing an early improvement in shareholder
returns.

Moving Forward

"Refocusing on lead and zinc smelting will mean that Pasminco
will be a far more stable business going forward with less
exposure to the volatility of daily metal prices. By focusing on
this respect of its core business Pasminco will remain the
largest zinc and primary lead producer in the world but will
still have opportunities to expand the business in the future.

"On a separate note, David Stewart has decided to step down as
Managing Director and Chief Executive Officer, effective 31 July
2001. We would like to acknowledge the significant development
and enhancement of the company's operating assets during his
tenure. The Board has appointed Greig Gailey as his replacement
and he will take up his position from 6 August 2001. Greigh was
most recently Chief Executive Officer of Fletcher Challenge
Energy in New Zealand and prior to that successfully undertook a
number of senior executive roles with BP in Austalia and Europe.

"It is a challenging time for Pasminco as we work to refocus the
business and improve return to shareholders. We thank you for
your patience and support for Pasminco during this time. We will
be endeavoring to bring about this change as quickly and
efficiently as possible and will keep you periodically updated
on progress."


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


CIL HOLDINGS: Posts HK$254.65M In Operations Loss
-------------------------------------------------
CIL Holdings Limited booked for the year ended 30 June 2000 an
operating loss of HK$254.649 million, down from the previous
year's loss of HK$652.088 million, on turnover of HK$196.493
million.

During the year ended 30 June 2000, the Group continued its core
businesses as contractors in interior decoration and renovation,
building construction, electrical and mechanical engineering and
trading of building and interior decoration materials.

Due to the tight cash position, the Group had not won any new
contract but concentrated its available revenue resources in
completing the works in hand; this accounts for a drastic drop
in turnover to HK$196.4 million which representing a 68.1
percent decrease from the previous corresponding period.

The Group had also relied on very high financing costs in the
construction projects, which resulted in delays and subsequently
led to disputes with sub-traders, suppliers and employees. These
also account for a triple increase in the provision for bad and
doubtful debts.

All the above factors attributed to the Group loss for the year
amounting to HK$299.5 million, which representing a 50.7 percent
decrease from corresponding last year.

Liquidity And Capital Resources

During the year, the Company made several placements totaling
776 million ordinary shares at a price of HK$0.10 each. The
proceeds were used for repayment of the Group's borrowings and
interest and as the Group's additional working capital.

The net liabilities of the Group as at 30 June 2000 is
approximately HK$291.2 million, the management intends to meet
the shortfall by long term equity finance and restructuring of
existing borrowings of the Group.

Prospects

During the year under review, the Group saw the uncertainties in
the future profitability of its core businesses, and had
therefore taken steps in diversifying into other businesses and
had acquired through equity finance a number of new businesses
with minimum cash outlays but with a guarantee profit.  Such
measures taken were to strengthen the Group's assets and income
base.

The Group will actively and prudently pursue other potential
business opportunities and is currently formulating plans for
the reorganization and future development of the Group and
restructuring of existing borrowings of the Group.

Qualified opinion: Disclaimer on view given by financial
statements

Disagreement of accounting treatment

"Pursuant to available information, AVT Electronics Limited
(AVT) should have become the subsidiary of the Group on 21 May
2000. In accordance with SSAP 2.132, Consolidated Financial
Statements and Accounting for Investments in Subsidiaries, the
Group should share the operating result of AVT from the date of
acquisition to the year-end.

"However, the Group started to consolidate the operation result
of AVT after 30 June 2000. The treatment is not complied with
SSAP 2.132. Based on available management accounts, AVT's
unaudited net loss for three months ended 30 June 2000 was
HK$126,000.

"Because of the significance of the possible effect of the
limitation in evidence available to us and non- compliance with
SSAP 2.132, we are unable to form an opinion as to whether the
financial statements give a true and fair view of the state of
the affairs of the Company and of the Group as at 30 June 2000
or of the Group's loss and cash flows for the year then ended.
In all other respects, in our opinion the financial statements
have been properly prepared in accordance with the disclosure
requirements of the Hong Kong Companies Ordinance.

"In respect alone of the limitation on our work relating to the
matters as set out in the basis of opinion section of this
report:

   (i) we have not obtained all the information and explanations
that we considered necessary for the purpose of our audit; and

   (ii) we were unable to determine whether proper books and
records had been kept."

Fundamental uncertainty relating to the going concern basis

"In forming our opinion, we have also considered the adequacy of
the disclosures made in note 1 to the financial statements in
respect of the fundamental uncertainty relating to debt
restructuring negotiations. The financial statements have been
prepared on a going concern basis, the validity of which depends
on the outcome of the Group's future profitability of its
operations and discussions with its financial creditors to
restructure the Group's borrowings.

"The financial statements do not include any adjustments that
would result from the failure of these debt-restructuring
negotiations. We consider that appropriate disclosures have been
made but the inherent uncertainties surrounding the
circumstances under which the Group might successfully continue
to adopt the going concern basis are so extreme that we have
disclaimed our opinion."


CLIMAX INTL: Fung Resigns As Executive Director
-----------------------------------------------
The Board of Directors of Climax International Company Limited
(the Company) announces that Mr. Fung Kin Keung Derek resigned
as executive director of the Company, effective 23 July 2001.

"The Directors would like to thank Mr. Fung for his valuable
contribution to the Company during his service," the company
said.

Meanwhile, Climax successfully completed its bank debt
restructuring agreement on 11 January 2001. Interest expenses
for the year were reduced substantially by HK$15.4 million to
HK$27.5 million and is expected to drop further to a much lower
level in the coming year owing to the scheduled repayments of
the bank debts.

The company last year sustained a net loss of HK$32.8 million.


CROWN ASSETS: Winding Up Petition Set For Hearing
-------------------------------------------------
The petition to wind up Crown Assets Limited will be heard
before the High Court of Hong Kong August 15, 2001 at 9:30 am.
The petition was filed with the court on June 7, 2001 by Po Sang
Bank Limited whose registered office is situated at No. 71 Des
Voeux Road Central, Hong Kong.


FU HUI: Trading Suspended Pending Workout Deal
----------------------------------------------
At the request of Fu Hui Holdings Limited (the Company), trading
in its shares was suspended effective 10:00 a.m. Monday 23 July
2001. A press release will be issued in relation to the Company
entering into relevant agreements for the Group's Restructuring.


ROMAX (HONG KONG): Faces Winding Up Petition
--------------------------------------------
The petition to wind up Romax (Hong Kong) Limited is set for
hearing before the High Court of Hong Kong August 1, 2001 at
9:30 am. The petition was filed with the court May 29, 2001 by
Gold Power Management Limited whose registered office is
situated at 7th Floor, Safer Industrial Building, 28 Sze Shan
Street, Yau Tong, Kowloon, Hong Kong.


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


BANK CENTRAL: Bapepam Suspects Manipulation Of Shares
-----------------------------------------------------
The Capital Market Supervisory Agency (Bapepam) suspected that
20 securities companies had worked together in controlling the
price of the shares of PT Bank Central Asia (BCA) - once the
country's biggest bank - all the way through their trading deals
prior to the bank's secondary public offering earlier this month
or on May and late June, Jakarta Post reported Friday citing
Bapepam chairman Herwidayatmo.

Herwidayatmo said at a press meeting that an analysis of BCA's
orders and transactions share-trading patterns was carried out
on 172 securities companies from May 1 to July 13.  In that
period, 20 securities companies dominated BCA share purchases.
On June 13 to June 29 when BCA shares fell, the same securities
companies dominated the selling of BCA shares. Out of the
undisclosed 20 companies, four have been examined.

Herwidayatmo added that it takes about 3 to 4 days to inspect
one securities company.  He promised to conclude the
investigation on the first Friday of August.

"If the securities companies are guilty of manipulation, they
will be brought to court where they could face a penalties of
Rp15 billion and jail term of up to 10 years for those
involved," he said, referring to article 91 of the Law No 8/1995
on the capital markets.

The 40 percent divestment of the government in BCA, which is a
part of the government's agreement with the International
Monetary Funds, started the bank's limelight.

Earlier this month, the government sold a 10 percent stake
through a secondary public offering. However, charges of insider
trading were leveled against BCA's lead underwriter, the state-
owned PT Danareksa Securities.


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


AIWA COMPANY: Seeks Parent Firm's Financial Aid
-----------------------------------------------
Aiwa Company, an audio equipment manufacturer, is seeking
addition financial assistance from its parent, Sony Corporation,
Kyodo News reported Monday, citing industry sources. This
decision will spark the revision of the struggling company's
planned new shares issue to raise funds.

Last month, Aiwa Company decided to padlock its research and
development (R&D) unit in Singapore and cut 249 jobs, due to
high operating costs that would eat up company profits.


DAIWA SECURITIES: Plans To Pull Out Of Pension Fund
---------------------------------------------------
Daiwa Securities Group is considering filing for the withdrawal
of its membership from the Japan Securities Dealers Employees
Pension Fund, the brokerage industry pension fund, Kyodo News
reported Monday, citing officials at Daiwa.

Last week, Moody's Investors Service changed the rating outlook
for Daiwa Securities' Baa1 issuer rating to negative from
stable.

According to Moody's, the outlook change for Daiwa Securities
reflects the rating agency'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.


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


DAEWOO HEAVY: 2002 Debt Workout Completion Likely
--------------------------------------------------
According to Korea Development Bank (KDB) Governor Jung Keun-
yong, Daewoo Heavy Industry and Machinery will likely be freed
from debts next year, when it is expected to complete its
workout, The Korea Herald reported over the weekend.

Meanwhile, Jung told The Herald that other companies, which are
under the bank's supervision and fail to normalize operations
under the workout exercise face a number of consequences. They
are likely to be liquidated, transferred to corporate
restructuring vehicles (CRVs), broken into different units, or
placed under court receivership.

By end of September, KDB is set to undertake credit assessments
of about 220 ailing firms, the report says.


DAEWOO SHIPBUILDING: To Walk Out Of Workout Next Month
------------------------------------------------------
Korea Development Bank (KDB) Governor Jung Keun-yong revealed
last week that Daewoo Shipbuilding and Marine Engineering may
graduate from its debt workout program next month, The Korea
Herald reported Friday.

Daewoo Shipbuilding has been under the supervision of KDB, the
report said.


DAISHIN LIFE: Sale To Commence This Week
----------------------------------------
The sale of insolvent Daishin Life is set to begin this week, as
Korea Deposit Insurance Corporation (KDIC) will start placing
official sales advertisements, The Korea Herald reported Monday,
citing the Financial Supervisory Commission.

While the sale is ongoing, the government will work out its plan
to inject public funds into the insurer and settle labor
problems in the company to begin the regularization of business
operations, the report said.

Daishin Life was declared insolvent after it was discovered that
the company had debts exceeding its assets by as much as W241.1
billion, with a solvency margin ratio of -908.5 percent.

According to The Herald, a solvency margin ratio "indicates how
well-equipped an insurer is to pay out insurance claims made by
its clients."

However, the report said that should the sale fail, the
government will have the option of transferring the insurer's
assets and debts to another insurance firm with a stable
financial condition.


HYNIX SEMICON: To Move Stake In Investment Arm To KEB
-----------------------------------------------------
Hynix Semiconductor Inc. will relinquish its entire 41.9 percent
stake in Hyundai Investment Trust & Securities Company to state-
controlled Korea Exchange Bank, the ailing chipmaker's largest
creditor, The Asian Wall Street Journal reported late last week.

Hynix will not get any compensation for the stake transfer, and
it was not disclosed when the transfer will take effect.

The transfer is called for in Korean law regarding a unit's
spinning off from its parent group. The law requires the company
retain only a below-3-percent stake holding in other group
units, the report said.


HYUNDAI ENGINEERING: Breaking Group Ties Aug. 1
-----------------------------------------------
The Fair Trade Commission (FTC) announced late last week that
Hyundai Engineering and Construction (HDEC), after meeting
requirements for a spin-off, will finally break ties with the
Hyundai Group, starting August 1, The Korea Herald reported over
the weekend.

At present, HDEC's stake is being controlled by Korea Exchange
Bank, Korea Development Bank, and other creditor institutions
with a combine stake holding of 86.98 percent. That leaves
Hyundai Group with only 3.54 percent.


HYUNDAI HEAVY: Profit Forecast Realization Unlikely
---------------------------------------------------
Hyundai Heavy Industries expects that its profit projections for
the year will not be met, as the company has already lost a
total of W81.9 billion owing to its shareholding in insolvent
affiliates, The Digital Chosun reported Monday.

On top of this recorded loss, the company anticipates it will
incur losses totaling W105 billion due to its 49 percent stake
in Hyundai Petrochemical, which the company has waived, upon the
request of the affiliate's creditors, the report said.


KOHAP CORP: Creditors Move To Divide Company Into Units
-------------------------------------------------------
Major creditors of Kohap Corporation are seeking the endorsement
of the 55 company creditors to adopt a written resolution that
will ask for the division of the ailing company into several
units, The Korea Herald reported Saturday.

The creditors deem the move as a practical means to normalize
the company. The major creditors are also seeking the approval
of other creditors for the appointment of an auditing firm to
perform the due diligence on the company.

Earlier, the major creditors group failed to pass a resolution
that sought the disposal of the company's five non-core textile
operations. The creditors wanted the company to concentrate on
its four petrochemical businesses.

The resolution is up for adoption this week.


SAMSUNG ELECTRONICS: Downgrades Target Profit
---------------------------------------------
Due to the downward trend in the information and technology (IT)
sector, Samsung Electronics is expecting a lower net profit than
the W6.43 trillion in net profit recorded last year, The Digital
Chosun reported Monday.

For the current year, the company's projected net profits is
pegged somewhere around W3 trillion, to be made on projected
sales of W37 trillion, the report said.


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


GADEK CAPITAL: FIC Approves Proposed Workout
--------------------------------------------
Gadek Capital Berhad announced that the company's Proposed
Restructuring was approved as proposed by the Foreign Investment
Committee (FIC) via its letter dated 17 July 2001.

The approval of the FIC is subject to the following main
conditions:

     i) 30 percent Bumiputra equity participation must be
maintained at all times in Gadek Capital;

     ii) Approval from the Ministry of International Trade and
Industry (MITI); and

     iii) Approval from the Securities Commission (SC).

At the date of this announcement, approvals from the MITI and
the SC are still pending.


LIEN HOE: Reports Defaults Status
---------------------------------
Lien Hoe Corporation Berhad reports the current status of the
following defaults pertaining to the Loan Stocks of Lien Hoe in
accordance with KLSE Practice Note No. 1/2001:

   a. Loan Stocks interest from 1 January 2000 to 30 June 2000;

   b. Loan Stocks interest from 1 July 2000 to 17 August 2000;
and

   c. Maturity and redemption of Loan Stocks due 17 August 2000

1.Reasons for default in payments:

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

2.Measures taken to address the default:

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

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

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

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

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

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

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


MALAYSIAN RESOURCES: Bank Negara OKs Talks With Utama
-----------------------------------------------------
The article entitled "MRCB identifies buyer for its RHB stake"
which appeared in The Edge Daily on 20 July 2001, Malaysian
Resources Corporation Berhad (MRCB) announced Bank Negara
Malaysia, through its letter dated 18 July 2001 which was
received on 19 July 2001, has given its approval to MRCB to
commence negotiation with Utama Banking Group Berhad. The
article was in regard to the Company's proposed disposal of its
22.68 percent equity interest in Rashid Hussain Berhad (Proposed
Disposal).

However, the Proposed Disposal is subject to the approval of the
Ministry of Finance.

Since the negotiation is still at a preliminary stage, the
Company is not able to provide any details until the deal is
firmed up.

A substantial portion of the proceeds from the Proposed Disposal
will be utilized to reduce the Group's debts.


UH DOVE: Units Disposes Stake In How Wah Genting
------------------------------------------------
UH Dove Holdings Berhad (the Company) (UHD) announced 20 July
2001, the Company's wholly owned-subsidiary, namely U.H.
Industries Sdn. Bhd. has disposed of part of its investment in
Ho Wah Genting Berhad (HWGB). The stake is comprised of 39,000
shares representing 0.024 percent of the issued and paid-up
capital of HWGB through the open market in the KLSE.

Details of Consideration [Paragraph 10.07(a)(i)]

The 39,000 shares were disposed at the respective price shown
below through the open market in the KLSE:

Number of Shares Disposed Selling Price (RM)
18,000 0.885
21,000 0.880

Particulars of the Transaction [Paragraph 10.07(a)(ii)]

The particulars of the investment in HWGB are as follows:

Number of Shares held
of RM1.00 each Percentage
Before Disposal 277,600 0.17%
After Disposal 238,600 0.15%

Statement that the Directors, Major Shareholders and/or person
connected with them have no interest, direct or indirect, in the
transaction [Paragraph 10.07(a)(iii)]

Based on the statutory records of the Company and to the best of
our knowledge and belief, none of the Directors and Major
Shareholders and/or person connected with them has interest,
direct or indirect, in the aforesaid disposal.

Rationale for the Disposal

The disposal was made to raise additional working capital for
UHD Group.


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


MUSIC CORP: Faces Suspension For Delay Of Report
------------------------------------------------
Music Corporation will face a trading suspension imposed by the
Philippine Stock Exchange (PSE), should the company fail to
disclose its financial performance report, AFX-Asia reported
Monday. The company may also be slapped with corresponding
fines.

In June, Music Corporation reported that it sustained a first
quarter net loss of P91.001 million on P335.7 million in sales.

The listed semiconductor company's operating loss amounted to
P91.09 million, as its cost of sales reached P102.6 million.
Expenditures totaled P342.2 million.


NATIONAL POWER: Partially Terminates Contracts With Mirant
----------------------------------------------------------
National Power Corporation (Napocor) has partially terminated
its four Navotas Gas Turbine Contracts with Mirant Philippines
Corporation, The Philippine Star reported Monday.

The move was designed to realize savings of up to P1.447 billion
from January 2002 to December 2002, and $502,000 from January
2003 to March 2005 for Gas Turbine 4, the newspaper said.

In addition, Napocor hopes reduce its losses. As of December 31,
2000, Napocor posted a year's loss of P12.9 billion.

Napocor documents, which the Star obtained, stated, "The
termination of the contracts will ease the financial burden of
Napocor as a result of its continuous payment of $1.147 million
monthly capacity fee despite the plant's minimal dispatch."


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


ASIA PULP: To Continue Bond Payments To Units' Creditors
--------------------------------------------------------
Asia Pulp & Paper Company (APP) intends to push ahead with its
plan to make bond payments to domestic creditors of the
Indonesian units, The Asian Wall Street Journal reported Monday.

The company maintained its earlier decision regarding the
payment, despite the parent firm's call for debt standstill in
March, and restructuring of $13 billion in debts and
obligations, the newspaper said.

APP Finance Director Hendrik Tee told the Journal, "We have been
under substantial public pressure in Indonesia to pay our local
bondholders and are extremely disappointed that they have, to
date, refused to take part in the restructuring."


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


ADVANCE AGRO: Moody's Downgrades Rating To `Caa3'
-------------------------------------------------
Moody's Investors Service downgraded the credit ratings for
Advance Agro's guaranteed unsecured notes due 2007 and
convertible bonds due 2001 to Caa3 from Caa1.

The rating action followed the company's default on the US$28
million final principal repayment of the bonds.

"The rating downgrade reflects the low expected recovery rate in
view of the subordinated status of the notes and bonds to the
company's secured debt, and the apparent uncertainty in
resolving creditors' claims under the legal system in Thailand,"
Moody's said.

"In Moody's opinion, the missing of the repayment reflects very
tight liquidity of the company in the recent weak products price
environment. The rating outlook remains negative."


KRISDAMAHANAKORN: Reports Progress Of Rehab Plan
------------------------------------------------
According to the rules and regulations of the Stock Exchange of
Thailand (SET) regarding rehabilitation plans, any company under
rehabilitation (REHABCO) that has its rehabilitation plan
approved by its shareholders is required to retain a financial
advisor to provide the report on its operating performance in
each quarter during the period of the rehabilitation plan.

Introduction

Krisdamahanakorn Public Company Limited (KMC) was notified by
the SET on March 5, 1999 regarding the classification of being
delisted by the SET.  KMC has notified the SET regarding its
intention to rehabilitate the company and has appointed Finansa
Securities Limited (Finansa) to be a financial advisor for
preparing of KMC's rehabilitation plan.

Finansa has prepared KMC's rehabilitation plan with the
cooperation of KMC and Ernst & Young Office Limited (E&Y) as
KMC's auditor who reviewed KMC's financial projection over the
2-year rehabilitation plan from 3rd quarter of 1999 to 2nd
quarter of 2001.

The extraordinary shareholders' meeting No. 1/2000 of KMC has
resolved to approve the rehabilitation plan on October 16, 2000.
By the request of KMC under the conditions of the SET, KMC's
shares were resumed their trading on the SET on December 7,
2000.

Since then, KMC and Finansa have submitted the progress reports
of rehabilitation plan of 3rd and 4th quarter of 2000.

The Progress of the Rehabilitation Plan and Operating
Performance of 1st Quarter of 2001

KMC and Finansa have analyzed KMC's auditor report of 1st
quarter of 2001 compared with KMC's financial projection under
the rehabilitation plan and would like to report the progress of
the rehabilitation plan and operating performance of 1st quarter
of 2001 as follows:

   Operating performance of normal property development business
is lower than the projected figures of 1st quarter of 2001since
the revenues are mostly generated by the sales of small-size
property.

   Sales of property, management fee income and revenues from
construction services are 27.50 percent lower than the
projection. Cost of sales and construction services are 10.49
percent lower than the projection.

   Revenues from interest income, rental fee and golf course are
43.57 percent, 46.43 percent and 3.59 percent higher than the
projection, respectively. Other income is 35.24 percent lower
than the projection while selling and administration expenses
are 11.78 percent higher than the projection. There is Bt35.64
million operating loss before interest expenses compared to the
projected operating loss before interest expense of Bt3.35
million.

   In first quarter of 2001, interest expenses are 348.19
percent higher than the projection since the debt restructuring
with 8 other creditors is not completed as expected. KMC has to
realize high interest expenses based on existing high interest
rates and loan amount.

   However, part of interest expenses incurred in 3rd and 4th
quarter of 2000 and 1st quarter of 2001 will be reversed to
profit from debt restructuring after the debt restructuring is
completed.

   After first quarter of 2001, KMC has completed the debt
restructuring with 2 more creditors which total amount of debt
restructuring is Bt321.36 million. This debt restructuring will
be appeared in KMC's.

   However, overall operating performance of normal property
development business for the last 3 quarters (3rd and 4th
quarter of 2000 and 1st quarter of 2001) outperforms the
projection. Revenues from sales of property, management fee
income and revenue from construction services are 72.06 percent,
92.13 percent and 175.66 percent higher than the projection,
respectively. Revenues from interest income, rental income and
golf course are 99.70 percent, 12.23 percent and 10.03 percent
higher than the projection, respectively.

   Only other income is 83.33 percent lower than the projection.

   Cost of sales and construction services are 78.05 percent
higher than the projection figures due to increase in sales of
property and revenue from construction services. Actual gross
profit margin is 34.09 percent, which is 7.14 percent higher
than the projection. Selling and administration expenses are
7.78 percent lower than the projection.

   Therefore, the operating income before interest expenses is
Bt42.35 million compared to the projected operating loss before
interest expenses at Bt10.90 million.

Furthermore, as mentioned in E&Y auditing report for the 1st
quarter of 2001, KMC is preceding the requirements specified in
the debt restructuring agreements with creditors (the
Requirements), which include converting debt to equity and debt
to assets. Although KMC has completed the debt restructuring
with many creditors, the actions to meet the Requirements
consume longer time than expected. However, the financial
statement of KMC will resume to be as the projection whenever
KMC completes its actions to meet the Requirements.

The extraordinary items from contract termination and debt
restructuring which are not realized in 3rd and 4th quarter of
2000 and 1st quarter of 2001 will be realized within year 2001.
KMC has further process its debt restructuring by signing the
debt restructuring agreement with Bangkok Bank Public Company
Limited on June 29, 2001 as reported to SET earlier. KMC expects
to complete its debt restructuring within year 2001.

Generally, KMC's operating performance in property development
business in the last three quarters are outstanding. Total
revenue from sales and construction services as well as
operating profit are well above the projected figures.


NEP REALTY: Reports Debt Workout Of Affiliate
---------------------------------------------
NEP Realty and Industry Public Company Limited reports the
following workout undertaken by its affiliate:

1. Date of Entry: 20 July 2001

2. Parties involved between Saraburi Industrial Park Company
Limited (SIP), an affiliate of NEP Realty and Industry Public
Company limited,  and NFS Asset Management Company limited
(NFS)

3. Transaction in brief: SIP signed debt-restructuring agreement
with NFS for the total debt Bt558,581,728.95 (Calculation
interest up to June 30, 2001). SIP will swap land about 1,017
rais to NFS for repayment. Te register the authorization in land
title deed by December 31, 2001. After this SIP and NEP can
reduce interest payment Bt58 million per year.


PANJAPOL PULP: Reorg Plan Transferred To Bankruptcy Court
---------------------------------------------------------
Panjapol Pulp Industry Public Company Limited (the Debtor) is
engaged in the Sale and Produce of paper, paper pulp, products
from paper and paper pulp, plastic bags and boxes. Its Petition
for Business Reorganization was filed to the Civil Court:
Transferred to the Central Bankruptcy Court

   Black Case Number Lor.Phor. 6/2542

   Red Case Number Phor. 12/2542

Petitioner: Thai Farmer Bank and Panjapol Pulp Industry Public
Co.Ltd: debtor

Planner: Mr.Surapongs Tejavibulya

Debts Owed to the Petitioning Creditor: Bt2,655,707,937.33

Date of Court Acceptance of the Petition: May 17,1999

Court Order for Business Reorganization and Appointment of
Planner: June 29, 1999

Number of creditors filing Applications for Debt Repayment: 102

Amount of debts: Bt45,447,516,859.80

Court order for the plan consideration: March 28, 2000 at 9.00
AM

The Court issued an order accepting the reorganization plan:
March 30, 2000

Contact: Mr. Songthom or Ms. Pacharee, Tel. 6792514


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

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