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               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 3, 2000, Vol. 3, No. 128

                                  Headlines


* A U S T R A L I A *

BONLAC FOODS: Town Braces For Milk Factory Closure
SIMSMETAL LTD.: Scrap metal Firm Fined A$2,000,000 for Competition Violation
THESPOT: David Jones Confirms Acquisition of E-Tailer's Assets

* C H I N A   &   H O N G   K O N G *

LAI SUN DEVELOPMENT: Mulls Sale Of Non-Core Assets To Pay Borrowings
PAM & FRANK: Court Will Schedule 2-Day Hearing on Winding-Up Later this Year

* I N D O N E S I A *

DJAJANTI GROUP: IBRA Threatens To Confiscate Djajanti's Assets
IDSPL FINANCE: S&P Warns IDSPL of Downgrade
PT PERTAMINA: Pertamina promises to probe graft report

J A P A N

SOGO CO.: Lenders to Forgive US$5.9 Billion to Avoid Rocking Nation's Economy
  
* K O R E A *

HYUNDAI GROUP: Agrees To Back Out Of Car Business
  
* P H I L I P P I N E S *

CAMP JOHN: Still Unable to Pay the Rent, Asks for Second Lease Restructuring
PHILIPPINE NATIONAL BANK: IMF & WB Insist on P10 Billion in New Capital
URBAN BANK: PDIC Delays Reopening of Bank Until Late July
  
* M A L A Y S I A *

BERJAYA GROUP: Reports RM549 Million Loss for Quarter Ending April 30, 2000
L&M CORPORATION: Finalising Scheme for its creditors and lenders
  
* T H A I L A N D *

PRECIOUS SHIPPING: Shipping Firm Restructures 12% Debentures
RENOWN LEATHERWEARS: Rehabilitation Plan Negotiations Continued to December




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


BONLAC FOODS: Town Braces For Milk Factory Closure
--------------------------------------------------
Bonlac Foods shuttered its milk processing plant located in Legerwood.  
Residents were shocked that it really happened, calling the plant the
lifeblood of the town since 30 of 70 people living in the town worked at
Bonlac.  

On July 25, The Mercury reports, Bonlac's board will consider expressions of
interest for future uses of the building.  Two offers are on the table today:

      (A) Alan Pye, who owns the nearby 24,000ha Rushy Lagoon property, has
          offered a sum believed to be worth more than the factory and
          equipment broken up to run his own milk processing plant.

      (B) A New Zealander proposes to retain the 30-strong workforce and
          probably create new jobs.


SIMSMETAL LTD.: Scrap metal Firm Fined A$2,000,000 for Competition Violation
----------------------------------------------------------------------------
The largest scrap metal recycler in the southern hemisphere, Simsmetal Ltd,
has been ordered to pay $2 million in penalties by Melbourne's Federal Court
following action brought by the Australian Competition and Consumer
Commission, The Mercuty reports.  Simsmetal has admitted that in 1995 it twice
attempted to reach a market-sharing arrangement with another scrap metal
merchant in South Australia.  A Simsmetal ferrous manager also told at least
one competitor in a recorded conversation that Simsmetal would "destroy" its
business if it tried to enter a customer's yard.


THESPOT: David Jones Confirms Acquisition of E-Tailer's Assets
--------------------------------------------------------------
David Jones confirmed market speculation that it acquired the assets of e-
tailer TheSpot and will use the hard assets to promote its own Internet
retailing strategy.  Immediately, TheSpot's 30,000 customers base will be
notified via e-mail of the shutdown and encouraged to shop online at David
Jones instead.

No financial terms were disclosed; it's understood, the Sydney Morning Herald
say, that David Jones got a bargain.  Six of TheSpot's employees will join
David Jones's e-commerce team while another 20 will lose their jobs.  TheSpot
founders Ms Alison Harrington and Mr Justin Punch will work with David Jones
for a week or so and then leave to pursue other ventures.  TheSpot's major
shareholder and investor, John Fairfax Holdings's online subsidiary f2, has
distanced itself from the beleaguered e-tailer - taking $4 million haircut in
the process.  



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


LAI SUN DEVELOPMENT: Mulls Sale Of Non-Core Assets To Pay Borrowings
--------------------------------------------------------------------
Lai Sun Development with its subsidiary Lai Fung Holdings plans to dispose of
about $600 million worth of properties, projects and non-core assets this
year, executive director Julius Lau Shu-yan said.  

"We will continue to dispose of some of our non-core assets," he told
reporters for Hongkong I Mail after Lai Sun Hotels' special general meeting
called to approve a reorganisation proposal.  

The reorganisation proposal provides for:

      (A) the sale of 200 commercial units at Tianhe Entertainment Plaza, in
          Guangzhou;

      (B) disposal of a 100,000 square foot area at Star House in Tsim Sha Tsui
          -- perhaps generating $250 million;

      (C) the transfer of LSD's 9.87% stake in Sunday Communications to
          Lai Sun Hotels (which is changing its name to eSun) in September;

      (D) the transfer of LSD's remaining 1.67% stake in Sunday to eSun by
          year-end; and

      (E) The partial disposal of Furama Hotel to repay some $1 billion in bank
          borrowings, and some $600 million to $700 million of $2 billion in
          bond-related debt.


PAM & FRANK: Court Will Schedule 2-Day Hearing on Winding-Up Later this Year
----------------------------------------------------------------------------
The Board of Pam & Frank International Holdings Limited advises that a hearing
on the Winding-Up Petition filed by Li Mei Trading Co. against the Company is
further adjourned by the Court for a 2-day hearing on a date to be fixed,
later in the year.  The date of hearing is expected to be known by 13th July
2000.  The basis of Li Mei's claim is that it made certain loans to the
Company of about US$1.3 million. The Company is disputing such debt.  



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


DJAJANTI GROUP: IBRA Threatens To Confiscate Djajanti's Assets
--------------------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) has threatened to confiscate
the assets of plantation and fishery interest Djajanti Group unless it
provides the agency with a lump payment of Rp 206.5 billion (US$23.7 million)
in cash as part of its debt restructuring deal.  

"We reject the order and will seek a legal solution," Djajanti's commissioner,
Effendi Sasrawijaya, told reporters late last week.  Effendi said the company
regretted the fact that the agency had never responded to any debt
restructuring proposals made by the company.

Djajanti told IBRA months ago that the company doesn't have Rp 200-plus
billion.  Djajanti's proposed repayment over a three-year period.  Having now
accumulated Rp 50 billion, Djajanti proposes paying that amount now and the
balance over three years.  


IDSPL FINANCE: S&P Warns IDSPL of Downgrade
-------------------------------------------
International ratings agency Standard and Poor's said it will soon lower its
ratings on US$150 million of secured notes issued by Indonesia's IDSPL
Finance.  The agency said the anticipated downgrade, guaranteed by Dayabumi
Salak Pratama to 'D' from 'CC,' reflected expectations DSPL "will be unable to
make its first principle payment of about $1.6 million to noteholders due June
30."  In a statement, S&P said Dayabumi, an independent geothermal power
producer on Java island, has since May 1998 been paid only 20-30 percent of
the amounts invoiced to Indonesia's state electricity company, PLN.  The low
payments had forced DSPL to meet its debt service commitments through a
combination of other sources, which were becoming exhausted, it added.


PT PERTAMINA: Pertamina promises to probe graft report
-------------------------------
State-owned oil and gas company Pertamina promised on Thursday it would probe
graft allegations amounting to Rp 1.054 trillion (US$122 million) in a recent
audit by the Development and Finance Comptroller (BPKP), the Jakarta Post
reports.  Pertamina spokesman Ramli Djaafar said the company was always open
to BPKP's investigations and would take legal actions against any findings of
corrupt activities.

"To prove the existence of corruption, further study of the findings is
required," Ramli said in a press statement.

BPKP's audit encompassed Pertamina, its subsidiaries and its production
sharing partners, covering the 1999/2000 fiscal year ending March 31.  Quoting
the audit, Ramli said that BPKP found possible irregularities in Pertamina
activities amounting to Rp 208 billion, of which some Rp 20 billion had been
clarified.  Findings of possible irregularities in Pertamina's production
sharing partners totaled Rp 820 billion, he said, with cases involving Rp 515
billion clarified.  He said that irregularities in Pertamina's subsidiaries
totaled Rp 3 billion, of which cases worth Rp 1.5 million had been clarified.  
He said that BPKP based its allegations of graft based on irregularities in
the procurement of goods and services, unreasonable payments for work,
fictional projects, faked documents, mark up practices, and nepotism.


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


SOGO CO.: Lenders to Forgive US$5.9 Billion to Avoid Rocking Nation's Economy
-----------------------------------------------------------------------------
Sogo, Japan's ninth-largest department store operator, will have US$5.9
billion in loans forgiven by creditors and the government in what will be the
nation's largest bailout ever, according to a report appearing in the Nihom
Keizai Shimbun citing unnamed government officials.  The bailout will mark the
end to days of speculation that the struggling Osaka-based retailer will be
kept afloat.  Its shares have more than doubled since June 20 after reports of
a bailout circulated and after Sogo said it was confident lenders would
forgive the loans.

Officials, the South China Morning Post explains, opted for a bailout because
of the psychological and financial damage a Sogo collapse would wreak.  Chief
among the worries of the officials engineering a bailout is that Sogo's
failure would cause Japanese consumers to fear for their own jobs and stop
spending.  A Sogo bankruptcy would have a direct impact on its 11,400
employees, the 50,000 employees at the 10,000 companies it does business with
and millions of Japanese who work at companies on financial ground almost as
shaky as Sogo's.


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


HYUNDAI GROUP: Agrees To Back Out Of Car Business
-------------------------------------------------
Hyundai Group said it will loosen links to its flagship car business, Hong
Kong I Mail reports, bowing to government pressure.  Hyundai's retreat comes
less than 24 hours after South Korea's largest industrial group insisted it
would maintain its ties to Hyundai Motor, hoping to use a new partnership with
DaimlerChrysler to strengthen its dominance of the nation's car market.  The
reversal, HKIM continues, strengthens the government's hand as it tries to
reduce the power of Korea's industrial groups, which have long been run by
their founding families as private fiefdoms.

At issue is Hyundai founder Chung Ju Yung's 9.1% stake in Hyundai Motor.  The
government has said he must reduce the holding to less than 3% before the
carmaker can be declared legally independent.  Hyundai, in response, said the
government had no right to dictate how much Mr Chung could own since he had
already sold his stakes in other affiliates and stepped down from management.
Instead of spinning off Hyundai Motor, Hyundai suggests it will sell some 20
other units ranging from Korea's largest contractor to life insurers.



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


CAMP JOHN: Still Unable to Pay the Rent, Asks for Second Lease Restructuring
----------------------------------------------------------------------------
Camp John Hay Development Corp., unable to pay its P425 million 1999 rent
payments, now owes the Bases Conversion Development Authority a total of P825
million in unpaid rent to.  Led by Fil-Estate Management Inc., and Penta
Capital Investments Corp., the Philippine Star reports, CJHDC has asked the
BCDA to restructure the second annual lease rental for Camp John Hay.

BCDA chairman Rogelio Singson revealed yesterday that the consortium made the
request early this year, shortly after his agency rejected a previous appeal
for a two-year reprieve from the payment of the second annual lease which was
due at the end of 1998.  Singson said the BCDA already granted the developer a
one-year moratorium but the grace period lapsed in December last year. He said
the grace period was granted in recognition of the delays in government
approvals.  CJHDC has missed two payments thus far and Singson said the BCDA
is still studying its request for deferment. He said whatever BCDA decides,
will still have to be approved by Malaca¤ang.

For its 1998 payment, the Star recalls, the BCDA agreed to allow CJHDC to make
a partial payment of P75 million in kind, in the form of condotel units and
club shares which the government was supposed to sell and convert into cash.
However, Singson said, CJHDC was not able to make this payment either.

  

PHILIPPINE NATIONAL BANK: IMF & WB Insist on P10 Billion in New Capital
-----------------------------------------------------------------------
The International Monetary Fund and the World Bank have directed Philippine
National Bank to obtain a P10 billion infusion of fresh capital by September
30 or forfeit the release of the second tranche -- $100 million -- of funding
available under the WB's Bank Sector Restructuring Loan.  

Finance Secretary Jose T. Pardo made the disclosure late last week following a
meeting with the IMF resident representative and WB country manager in the
Philippines.  Pardo says Bangko Sentral ng Pilipinas will impose sactions on
PNB if it doesn't comply with the directives.  Those sanctions could include
conservatorship or takeover of PNB management.

Press reports speculate that Lucio Tan, who owns 49 percent of PNB, may
contribute the fresh P10 billion of capital himself.  Other sources point to
minority shareholder Templeton Asset Management Inc., to provide funds.



URBAN BANK: PDIC Delays Reopening of Bank Until Late July
---------------------------------------------------------
The Philippine Deposit Insurance Corp. announced that it will delay reopening
Urban Bank until late July.  PDIC president Norberto Nazareno indicated that
the PDIC hopes to reopen Urban Bank before the 90-day receivership period ends
on July 26.  PDIC, Mr. Nazareno relates, is still negotiating the terms of a
rehabilitation plan.

BusinessWorld reports that two competing acquisition deals are under
consideration by the PDIC:

      (A) Asia United Bank, offers a seven-year pay-out period for the bank's
          liabilities with repayment coming from operating profits; and

      (B) Bank of Commerce, whose proposal calls for a interest haircut-free,
          three-year payout period for all deposits and other liabilities, with
          the Social Security System kicking PhP600 million into the pot.

A ranking Bangko Sentral (Central Bank of the Phils.) official told BW that
Bancommerce's proposed rehabilitation plan for Urban Bank will likely get the
approval of the Bangko Sentral's policy-making Monetary Board unless its rival
can improve its bid.  "At this point, Bancommerce has the advantage over Asia
United," the official, requesting anonymity, said.  "The PDIC wants both banks
to improve their offers with higher equity and shorter deposit payout
periods," the official said.


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


BERJAYA GROUP: Reports RM549 Million Loss for Quarter Ending April 30, 2000
---------------------------------------------------------------------------
Berjaya Group Bhd said its net loss for the year to April 30, 2000 grew five-
fold following write-offs on investments and other provisions.  Berjaya, a
property-to-gaming group, said last week its net loss rose to RM549.37 million
(S$250.6 million) from a loss of RM109.85 million in 1999.

The exceptional losses for the full year were RM330 million, compared with
gains of RM321.46 million a year earlier, The Business Times relates.

The exceptionals for the quarter were due mainly to write-down of long-term
investments, write-offs of overseas lottery development spending and partial
shares in an unidentified listed unit, Berjaya said.


L&M CORPORATION: Finalising Scheme for its creditors and lenders
-----------------------------------------------------
L&M Corporation (M) Bhd, which obtained a restraining order under Section 176
of the Companies Act, is finalising a capital-restructuring scheme to be put
forward to its creditors and lenders, according to a report circulated by The
Edge.  

The company's executive director Mohamed Jamal Mohd Ramli says: "We are closed
to presenting a scheme that is acceptable to all our lenders and creditors and
expect to receive their consent before the expiry of the restraining order (at
the end of August).  The scheme will involve a capital-restructuring exercise
that could include a rights issue or an injection of assets such as property
and land."

He hopes to have a business plan in place for the group by the first quarter
of next year so that L&M can have a new start, The Edge reports.  

Jamal also says the group had difficulties in collecting the debts because
many of them were companies either under Section 176 or pending restructuring
by the Corporate Debt Restructuring Committee.  "It will take time, maybe up
to two years, for these companies to complete their restructuring schemes. We
can't wait, we have to make the provisions and move on," he adds.



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


PRECIOUS SHIPPING: Shipping Firm Restructures 12% Debentures
------------------------------------------------------------
Precious Shipping Plc obtained the consent of the holders of its Bt 2.5
billion issue of 12% unsecured debentures.  Bondholders will have two options:

      (1) An up-front 40% cash payment with the balance converted into a new
          Redeemable Convertible Debenture.  The convertible security can be
          swapped for equity in 30 months.  Precious will retain the option of
          redeeming the new debentures before the expiration of the 30-month
          period; or

      (2) Conversion of the 12% Bond into a five-year, 6% commercial loan.

"This is one more step toward the completion of our debt restructuring plan
and we expect to complete the entire process by the middle of July," PSL
finance director Khushroo Wadia told The Nation.  The company's managing
director, Khalid Hashim, added that the restructuring process has been going
on for more than a year and its completion would allow the company to focus on
its real business of shipping.



RENOWN LEATHERWEARS: Rehabilitation Plan Negotiations Continued to December
---------------------------------------------------------------------------
Renown Leatherwears Plc. "has attempted very hard in negotiation with the
lenders regarding the debt restructuring plan," Director Apipun Wongpensri
said in a regulatory filing last week.  But more tiime is needed to achive a
consensus.  

Renown proposed a rehabilitation plan on March 10, 2000.  There were lenders
with outstanding debts of 1,866 million baht or 46% of total outstanding debts
voted in favor of the plan and lenders with outstanding debts of 709 million
baht or 18% of total outstanding debts voted against the plan.  Further, there
were lenders with outstanding debts of 437 million baht or 11% of total
outstanding debts did not cast the votes and lenders with outstanding debts of
1.011 billion baht or 25% of total outstanding debts did not attend the
meeting.

However, the extension period almost ends and the company is in the process of
revising and negotiating with the lenders to improve such debt restructuring
plan, which is expected to reach agreement in near future. Therefore, the
company will postpone the submission of the plan until December 30, 2000.



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. Darryl Henning, Managing Editor, James Philip P.
Jover and Cristina Pernites, Editors.

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

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                        * * * End of Transmission * * *