<b>Asia Pulp and Paper Halts Payments</B>

Asia Pulp and Paper Co. Ltd. has stopped payment of interest and principal on its debt and the debt of its units.

Assets of the Singapore-headquartered company are centered in such Indonesia-based operating subsidiaries as PT Indah Kiat Pulp & Paper , PT Pabrik Kertas Tjiwi Kimia , and untraded PT Pindo Deli Pulp & Paper.

Asia Pulp and Paper's (APP) stock is traded in New York where the company released a statement saying: ``On the advice of our financial advisors, Credit Suisse First Boston, we intend to immediately cease payment of interest and principal on all holding company debt and on debt issued by our subsidiaries and affiliates, the obligations of which are funded by such subsidiaries.

``In order to allow our operating subsidiaries to continue normal operations, we will be giving priority to servicing our suppliers and trade creditors,'' the statement added.

The company and its operating units face eight lawsuits for tens of millions of dollars in Singapore courts in the next few weeks.