<B>Asia Pulp &amp; Paper Puts New Mill on Hold</B>

Asia Pulp & Paper Co. said it has delayed its plan to build a $1.3 billion pulp and paper mill in Malaysia ``indefinitely.''

Late last week the company's 60 percent owned Malaysian unit, Borneo Pulp and Paper Sdn, said it was planning to raise about $1 billion to finance the project.

APP shares have fallen as much as 50 percent to a record low since it announced plans for the exchange offer, valuing the company at about a twentieth of its outstanding debt.

The company has to repay more than $2 billion by the end of next year. APP as a group owes more than $10 billion.

If the Malaysian mill project goes ahead, the company said it would be willing to sell its stake down to 20 percent, and it ``would not expect to be responsible for building or financing the project.''