/raid1/www/Hosts/bankrupt/TCRAP_Public/000922.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

             Friday, September 22, 2000, Vol. 3, No. 185

                                        Headlines


* A U S T R A L I A *

EISA: Appoints voluntary administrator
NORMANDY MINING: Debt rises to $1.5B


* C H I N A  &  H O N G  K O N G *

DAN FORM HOLDING CO.: Posts 1H net loss
DIGITALHONGKONG.COM: Posts wider annual net loss
PACIFIC CENTURY CYBERWORKS: ADRS drop 13% after C&W sale
RYODEN DEVELOPMENT: Posts 1H loss
YUE XIU ENTERPRISES: Signs restructure deal


* I N D O N E S I A *

PT BANK MUAMALAT: Sues IBRA over Rp25.4B rupiah unpaid debt
PT MULIA INDUSTRINDO: Signs debt restructuring deal
PT PERUSAHAAN DAGANG: Court endorses debt rehab plan
SALIM GROUP: FSPC approves sale of 3 its entities


* J A P A N *

DAIWA BANK: Officials ordered to pay $775M
MUTSI-OGAWARA: Collapses with $1.73B in liabilities
NICHIMEN CORP.: To take 40B yen loss on accounting change
PHOENIX RESORT: Seeking restructuring assistance


* K O R E A *

DAEWOO MOTOR CO.: Creditors mulling break-up option
KOREA CHEMICAL CORP.: To be liquidated
SAEHAN MEDIA: Workout plan finalized
SSANGYONG CEMENT: Taiheiyo considering $300M investment


* M A L A Y S I A *

EUROPLUS: To raise RM600M to re-fi debt
MAH SING GROUP: To raise funds to repay bank loans
MALAYSIAN AIRLINES: Airline negotiations hit stalemate


* S I N G A P O R E *

QUANTUM M & E ENGINEERING: Facing winding up petition


* T H A I L A N D *

BANKTHAI: Sells Bt229.7M in assets
KRUNG THAI BANK: Bad loans gone, to restructure
SIAM CEMENT: Debentures sold to reduce debt
THAI PETROCHEM.INDUS.: Rehabilitation plan completed


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

EISA: Appoints voluntary administrator
--------------------------------------
Financially embattled eisa confirms its board has placed
the company into voluntary administration.

"The directors of eisa Limited resolved earlier today to
appoint Andrew Love of Ferrier Hodgson as administrator of
eisa," it said in a statement.  "The appointment takes
immediate effect."

At the same time, eisa takeover suitor Austar United
Communications has reached agreement for the sale of eisa's
business to Austar.  The sale is subject to consideration
by eisa's creditors and contract documentation.

"Austar will be assisting the administrator in the
management of the business from today," Austar and eisa
said in a joint statement, following eisa's announcement
that the company had been placed in voluntary
administration.  "The agreement negotiated with Austar will
giver certainty to eisa's customers and staff," Ferrier
Hodgson's Love said in the joint statement. "It should also
allow eisa's creditors to receive a significant dividend.
I believe that in the circumstances this is the best
possible arrangement for everyone concerned."

Austar chief executive John Porter said he regretted the
company's offer for eisa was unsuccessful.  But Austar was
happy that the outcome would ensure eisa customers
continued to receive their service, he added.

"It has always been our promise that the quality of the
service they receive will improve once they are Austar
customers."  Terms of the agreement and its financial
impact will be discussed with creditors by Love next week.
(Sydney Morning Herald  21-Sept-2000)

NORMANDY MINING: Debt rises to $1.5B
------------------------------------
Normandy Mining significantly increased its gearing during
the past 12 months and saw its balance sheet shredded as
the company battled to consolidate its takeover of Great
Central Mines.  The group's annual report, released
yesterday, showed that at June 30 net debt had risen to
$1.55 billion, lifting the company's gearing to 57 per cent
from 28 per cent a year earlier.

Despite having repaid more than $350 million during the
year, the Great Central Mines acquisition brought $US300
million ($552.07 million) of senior debt onto the Normandy
balance sheet plus a fully drawn $285 million loan
facility.  Normandy's annual report also confirmed the
company was owed $106 million by entities associated with
Mr Joseph Gutnick, the founder of Great Central Mines, the
group swallowed by Normandy last year.

Normandy's exposure to Mr Gutnick is secured against assets
in the remaining public companies within the Gutnick group.
A Melbourne mining entrepreneur, Mr Gutnick has continued
to service the debt in the latest year, at a 3 per cent
interest rate.  His debt servicing costs appear to be
largely funded by sell-downs of equity interests, including
his stake in Centaur Mining and Exploration.

Despite Normandy's debt position the Great Central takeover
will be the key driver behind an expected 10 per cent rise
in the gold miner's annual gold production to 2.2 million
ounces this year.  Normandy's chairman and chief executive,
Mr Robert Champion de Crespigny, said in the annual report
that key increments would come from full ownership of Great
Central's Yandal operations in Western Australia, and
expanding existing operations.

Mr de Crespigny said the increase was expected to be
accompanied by another fall in total cash costs to below
$300 per ounce compared to $304 in 1999 to 2000. Normandy
also expected to be in a position to move on expanding the
Boddington joint venture in WA, the Perama project in
Greece and Ghana's Yamfo-Sefwi project. (Australian
Financial Review  21-Sept-2000)


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

DAN FORM HOLDING CO.: Posts 1H net loss
---------------------------------------
Property developer and investment company Dan Form Holdings
Company Ltd. recorded a HK$10.05 million net loss for the
six-month period ended June 30. By comparison, the company
posted a slightly larger HK$12.5 million net loss the same
period a year earlier. Loss per share also narrowed to 0.66
HK cents from 0.77 HK cents.  Revenue, meanwhile, fell 26.6
percent to HK$35.4 million. No interim dividend will be
distributed.

DIGITALHONGKONG.COM: Posts wider annual net loss
------------------------------------------------
Digitalhongkong.com Ltd., a provider of an electronic
payment processing platforms for business to business and
business to consumer applications, recorded a HK$9.3
million net loss for the year ended June 30. That was up
over 300 percent from the net loss of HK$2.6 million posted
a year earlier. Loss per share also widened to 7.12
HK cents from 2.09 HK cents. The company's revenue was
HK$3.2 million during the period. No final dividend will be
distributed.

PACIFIC CENTURY CYBERWORKS: ADRS drop 13% after C&W sale
--------------------------------------------------------
Pacific Century CyberWorks Ltd.'s American depositary
receipts tumbled after Cable & Wireless Plc sold a 4.9
percent stake at an 8 percent discount, raising concern the
U.K.'s No. 2 phone company will rush to sell its remaining
shares.

"After they've sold this 4.9 percent, they have at least
three times that to sell," said David Webb, the editor of
webb- site.com. "In February, they can sell up to half of
the remaining stake. So that is an overhang."

New York-traded ADRs in Asia's second largest Internet
investment company fell 13 percent to $12.38 yesterday,
suggesting the stock should open down 10.2 percent in Hong
Kong at HK$9.65.  Cable & Wireless received cash and about
a fifth of CyberWorks on Aug. 17 in return for its holdings
in Hong Kong's No. 1 phone company, Cable & Wireless HKT
Ltd.

It raised HK$10.3 billion ($1.3 billion) selling shares at
HK$9.88 each yesterday, 8 percent lower than their HK$10.75
market price and 37 percent lower than their HK$15.80 price
when C&W acquired them.  The sale, which will leave C&W
with 15.3 percent of CyberWorks, comes as investors
worldwide question the value placed on Internet business
pioneers.

Some investors were disappointed that Merrill Lynch & Co.
had to sell the shares to independent investors and not to
a single, large telephone company.  "If they'd been able to
place the shares with a global telecoms company, they would
have been better off," said Husan Pai, senior fund manager
at Indocam Hong Kong Ltd., which manages $3 billion in Asia
and says CyberWorks is worth buying at HK$9. "Probably they
shopped around for that."

Founded by Richard Li, the son of billionaire Li Ka-Shing,
CyberWorks fell 62 percent from a peak of HK$28.50 seven
months ago.  CyberWorks shares began to slide in March
alongside Internet stocks listed on the U.S. Nasdaq Stock
Market. They tumbled further this month after GigaMedia,
one of Taiwan's largest Internet service providers, pulled
out of a venture to distribute video content online, and
CMGI Inc., a U.S.-based Internet investment company,
scrapped plans to start a fund with CyberWorks.

It also fell on concern CyberWorks Network of World
service, which includes an Internet portal and a satellite
television service, will take longer than originally hoped
to turn a profit. Viewers of NOW on televisions, computers
and mobile phones can call up text, sound or video.

"It's hard to sell 5 percent to a strategic investor," said
Peter Milliken, an analyst at Lehman Brothers Asia Ltd. in
Hong Kong. "The control will continue to lie with the
current management team. Anyone going in would go in as a
passive investor."

The stock will resume trade at 10:00 a.m. Hong Kong time.
Merrill Lynch of the U.S. handled the sale along with ABN
Amro Holding NV, HSBC Holdings Plc and BNP Paribas SA.
(Bloomberg 21-Sept-2000)

RYODEN DEVELOPMENT: Posts 1H loss
---------------------------------
Ryoden Development Ltd., a property developer and investor,
recorded a HK$16.65 million net loss for the six-month
period ended June 30. By comparison, the company posted a
net profit of HK$515,000 million for the same period a year
earlier. Loss per share was 1.48 HK cents, compared with
earnings of 0.05 HK cents per share the prior year. Revenue
fell 53.6 percent to HK$60.3 million. No interim dividend
will be distributed.

YUE XIU ENTERPRISES: Signs restructure deal
-------------------------------------------
Mainland-backed Hong Kong conglomerate Yue Xiu Enterprises
(Holdings) has signed an agreement with bank creditors to
restructure HK$4.9 billion (US$628 million) of unsecured
debt with a five-year secured refinancing loan, the China
Daily reported.

The average interest rate is 2.3% over the London Interbank
Offered Rate (LIBOR) or Hong Kong Interbank Offered Rate
(HIBOR), Yue Xiu said in a statement yesterday.  All of Yue
Xiu's unsecured outstanding loans have been refinanced and
the new facility is secured over the conglomerate's
unlisted assets, a Yue Xiu spokeswoman said.

Yue Xiu, owned by the Guangzhou municipal government in the
southern province of Guangdong, entered into restructuring
talks with creditors shortly after the collapse of another
state-owned vehicle, the Guangdong International Trust
and Investment Corp (GITIC), in October 1998. Yue Xiu's
core business is in infrastructure and it holds 38% in
Guangzhou Investment Co and indirectly has a controlling
interest in GZI Transport.

The spokeswoman said plans for the Guangzhou government to
inject three assets -- namely Guangzhou City Construction &
Development Holdings, Dong Fang Hotel Group and
Mingquanju holiday resort -- were progressing smoothly.
Sources close to the deal said these assets would also be
added to the security pool for the refinancing.

The refinancing agreement was signed on Tuesday with 81
banks and financial institutions. It was coordinated by
BOCI Capital, an arm of the Bank of China, Bank of East
Asia, HSBC Investment Bank Asia and Societe Generale
Asia.  The refinancing did not involve Yue Xiu's listed
subsidiaries.

Apart from the HK$4.9 billion facility, the refinancing
also included a separate HK$2.8 billion (US$358 million)
tranche of five-year standby credit facilities provided by
23 banks and financial institutions, Yue Xiu said.  This
will be used for funding infrastructure projects in
Guangzhou guaranteed by Yue Xiu. (ChinaWeb  21- Sept-2000)


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

PT BANK MUAMALAT: Sues IBRA over Rp25.4B rupiah unpaid debt
-----------------------------------------------------------
PT Bank Muamalat has filed a civil suit with the South
Jakarta District Court against the Indonesian Bank
Restructuring Agency (IBRA) and Bank Tiara Asia for an
alleged unpaid debt of 25.4 bln rupiah which it claims to
have matured in Feb 1999, prosecution lawyer Artidjo
Alkostar said.

He said IBRA, which took over Bank Tiara's debt in Aug 1998
under a government-sponsored restructuring plan, failed to
fully settle the latter's debt to Bank Muamalat. "Of Bank
Tiara's total 108.2 bln debt to Bank Muamalat, IBRA has
only repaid 82.8 bln rupiah, leaving the remaining 25.4 bln
rupiah still unpaid," the lawyer noted.

Bank Muamalat has asked the court to issue a sequestration
order on IBRA's and Bank Tiara's main office building in
Jakarta until the debt is paid, plus a 10 billion rupiah
penalty. (AsiaGateway  20-Sept-2000)

PT MULIA INDUSTRINDO: Signs debt restructuring deal
---------------------------------------------------
PT Mulia Industrindo Tbk (MI) has reached agreement
with its bank creditors on the terms for restructuring of
the outstanding debt and obligations of MI and its
subsidiaries.

The restructuring terms were set out in Master Facilities
Agreements ("MFAs") signed by MI, listed on the Jakarta
Stock Exchange under the symbol "MLIA", and its
subsidiaries PT Muliakeramik Indahraya Tbk, a leading
Indonesian floor tiles manufacturer; PT Muliaglass, a major
flat glass manufacturer; and Mulia Industrindo Finance
B.V., a finance vehicle.

Mulia Industrindo signed MFAs for over US$260m debts
indebted to 40 foreign and Indonesian financial
institutions yesterday at the Mulia Hotel in Jakarta.
Management expects to complete the restructuring after
meetings of the other two primary creditor groups --
holders of floating rate notes and Indonesian rupiah-
denominated bonds -- approve the restructuring on the same
terms as those agreed with the bank creditors.

Eka Tjandranegara, President Director of MI, said, "The
signing of the MFAs today is the result of over two years'
intensive efforts on negotiation and documentation. I am
happy that all of this is coming to an end so that we
can just get back to business."

The signing was one of the earliest major Indonesian
restructuring to agree to terms; a tribute to the
commitment of MI's management and its institutional
creditors to establish MI as a leading example of
Indonesian economic recovery.  The Steering Committee
representing the bank creditors is comprised of Bank
of America (Chairman), ABN AMRO, Credit Lyonnais and Sakura
Bank. KPMG - Siddharta Consulting acts as the Monitoring
Accountant, while Allen & Overy and Ali Budiardjo, Nugroho,
Reksodiputro are the legal counsels for creditors.

Strategic Advisors Limited acts as financial advisers to
MI.  Latham & Watkins and Soemadipradja & Taher are the
company's legal counsels. (Indonesia Exchange News 21-Sept-
2000)

PT PERUSAHAAN DAGANG: Court endorses debt rehab plan
----------------------------------------------------
The Jakarta commercial court has endorsed PT Perusahaan
Dagang dan Industri Ometraco's debt repayment proposal
after the majority of creditors voted in favor of the plan.

Two creditors, however, the Indonesian Bank Restructuring
Agency (IBRA) and PT Bank Internasional Indonesia, rejected
the proposal, Ometraco administrator Ken Bernardi said.

Bernardi said Ometraco owes 457.5 bln rupiah to the 12
creditors while its assets are valued at only 56.1 bln
rupiah.  He noted that based on the latest evaluation,
IBRA's outstanding loans to Ometraco totaled 5 mln usd plus
107 bln rupiah, compared with the previous estimate of 22.7
bln rupiah.

Under the proposal, Ometraco will repay 42 bln rupiah to
IBRA, while Bank Internasional Indonesia will get 2.1 bln
rupiah for its 21.3 mln usd credit.  IBRA litigation
division staff Edward Manik said IBRA rejected the plan
because the proposed repayment is too small compared to the
principal debt.

Moreover, Manik said Ometraco did not furnish IBRA with
financial reports as the plaintiff in the bankruptcy case.
The court had previously given both debtor and creditors 45
days to negotiate a debt restructuring program.  (AFX News
Limited  21-Sept-2000)

SALIM GROUP: FSPC approves sale of 3 its entities
-------------------------------------------------
An Indonesian government body has approved the sale of
three entities from the diversified Salim Group, which is
under the control of the country's bank restructuring
agency.

In a statement obtained on Wednesday, the Financial Sector
Policy Committee (FSPC) said the three were an unidentified
palm oil plantation group; a producer and distributor of
chemicals, PT Sulfindo Adiusaha and its subsidiaries; and
the Indocoal group of mining entities.

All large asset sales of companies under the control of the
Indonesian Bank Restructuring Agency (IBRA) must be first
approved by the FSPC, a body set up by the government to
coordinate various economic policies.  The sale of the
entities should be completed in three months, although it
was unclear how much this would net IBRA.

IBRA controls the huge Salim Group, once Indonesia's
largest conglomerate headed by a close associate of
disgraced former President Soeharto.  The agency is under
mounting pressure to expedite sales of its multi-billion
dollar asset portfolio to help spur economic recovery and
support the state budget.

IBRA is charged with raising Rp18.9 trillion (US$2.16
billion) in asset sales in the truncated fiscal year of
April to December, although it has said it could bring in
more. IBRA said earlier this month it had raised Rp9.23
trillion so far.  Other Salim Group assets planned for sale
this year include television company Indosiar, Salim Coal
and Indomilk.  (Reuters, Mandiri On-Line  21-Sept-2000)


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

DAIWA BANK: Officials ordered to pay $775M
------------------------------------------
A Japanese court ordered 11 officials of Daiwa Bank to pay
a group of shareholders $775 million in compensation for
losses incurred by the bank from unauthorised bond deals at
its New York office.

Kenji Yasui, former president of the New York branch, was
ordered to pay $530 million and 10 other board members to
pay $245 million after the bank suffered $1.1 billion in
losses from fraudulent bond trading by employee Toshihide
Iguchi.  Daiwa was fined $340 million for concealing the
losses from regulators and forced to withdraw from the US.

The Osaka district court order, the largest sum awarded in
a shareholder suit, reflects the huge damage suffered by
Daiwa bank and highlights the growing intolerance of
corporate mismanagement in Japan. It followed several
similar actions in which shareholders have taken legal
action to punish management, a trend that is causing
ripples in corporate Japan.

The large fines reflected the size of the damage incurred
through the illegal trades, according to Hideaki Kubori, a
lawyer who specialises in corporate governance. Given the
huge sums involved, the suit is expected to be settled out
of court for a lower sum, he said.  The court order sent a
strong message on corporate governance to the Japanese
business community.

"The amount Daiwa executives have been fined is important,"
said Takashi Kawai, a strategist at IBJ Securities. "People
used to join a company with the aim of being in the top
management one day, but since the 'big bang' reforms,
capable people want to become specialists to avoid being
held responsible. To be in top management isn't as good as
it once was."

Nomura, Dai-Ichi Kangyo Bank and more recently Kobe Steel
executives have been sued by shareholders for paying off
sokaiya corporate racketeers.  The Daiwa incident shook
Japan five years ago and caused diplomatic tensions between
Japan and the US when the 11 years of rogue trading by Mr
Iguchi came to light in August 1995. Mr Iguchi was fined
$2m and sentenced to four years in prison. (Financial Times
20-Sept-2000)

MUTSI-OGAWARA: Collapses with $1.73B in liabilities
---------------------------------------------------
Japanese industrial park developer Mutsu-Ogawara
Development has collapsed with $1.73 billion in
liabilities.

According to Teikoku Data Bank, the Tokyo-based Mutsu-
Ogawara Development has filed for liquidation with the
Tokyo District Court. The development company was set up
jointly by the Japanese government and private companies.
It now becomes the largest bankruptcy case for companies so
jointly set up.

Mutsu-Ogawara was established in 1971 by the Japanese
government for the purpose of developing an industrial park
in Aomori. Its debts grew after it was unable to attract
enough businesses to the industrial park, according to
Teikoku.

NICHIMEN CORP.: To take 40B yen loss on accounting change
---------------------------------------------------------
Nichimen Corp. plans to record a consolidated extraordinary
loss of 40 billion yen in the six-month period ended
September 30 due to the introduction of market value
accounting.

The major trading house will likely offset the loss with an
equivalent amount of special profit, enabling group net
profit to reach 1 billion yen, which would still be down
from 2.1 billion yen a year earlier.  The parent company is
expected to suspend the annual dividend, placing priority
on rehabilitation of its financial condition.

Of the 40 billion yen extraordinary loss, 30 billion yen
will come from appraisal losses on assets and the transfer
of reserves. The remaining 10 billion yen will be losses
from liquidating affiliates.  Sales should fall about 20%
to 1.2 trillion yen. The gross profit margin will improve
by 1 percentage point to more than 5%, thanks to less
activity in metal trading and other unprofitable
operations.

Group pretax profit should rise 9% to 10 billion yen.
The company will complete the transition to market value
accounting in the first half, with the one exception being
cross-shareholdings.  For the full year through March 2001,
Nichimen is unlikely to post additional group appraisal
losses on 78 billion yen in properties for sale at the end
of March. In previous years, losses were recognized on
these properties if values fell by more than 50%.
(Indonesian Daily News On-Line  21-Sept-2000)

PHOENIX RESORT: Seeking restructuring assistance
------------------------------------------------
Phoenix Resort, Ltd., operator of debt-ridden Seagaia
resort complex in Miyazaki, has given up on reconstructing
itself and has begun negotiations with domestic and foreign
companies for management transfers and financial
assistance.

The resort complex has outstanding debts totaling some
121.8 billion yen.  Phoenix Resort is funded by both the
public and private sectors, with one of its main creditors
being Dai-Ichi Kangyo Bank. If Phoenix Resort is successful
with it currently negotiations, president Eitaro Kimoto
will then start negotiations with creditors concerning debt
forgiveness, the company revealed.

The resort complex likely will face a shortage of operating
funds through fiscal 2002. Consequently, Phoenix Resort is
looking for sponsors as a way of avoiding bankruptcy.


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

DAEWOO MOTOR CO.: Creditors mulling break-up option
---------------------------------------------------
South Korean creditor banks of Daewoo Motor Co.are thinking
about breaking up the bankrupt Daewoo Motor Co. as
prospects dimmed for a complete sale of the carmaker.

A lack of enthusiasm from bidders after Ford Motor Co.'s
withdrawal of its 6.9 billion dollar takeover offer has
forced creditors into a rethink, analysts said.  Uhm Rak-
Yong, head of Korea Development Bank, the main creditor,
told reporters: "The basic position of creditors is to sell
Daewoo Motor in a package deal. But we will remain flexible
during negotiations. If the potential buyer makes really
good proposals, we will consider excluding some of Daewoo
Motor's assets from the deal."

Two alliances between General Motors and Fiat and
DaimlerChrysler with Hyundai Motor Co. had been in
competition with Ford during the first auction in June.
Following Ford's dramatic pullout last Friday, General
Motors has hesitantly said it was talking with Fiat while
DaimlerChrysler at first said it was not interested in a
new offer.

It has since indicated it would be interested in buying
parts of Daewoo if it was broken up.  The creditors had
sought new offers by the end of September and had set a
deadline of October 20 for a deal to be completed. That
deadline now looks set to be pushed back if a breakup
becomes more likely.

"We have yet to send our invitations to GM and Hyundai-
Daimler," said the KDB chief who has taken charge of the
new auction. "Talks are under with these firms before
sending them out."

Lee Keun-Young, chairman of the state Financial Supervisory
Commission, meanwhile gave a national assembly committee
more details of the proposed auction.  "We will consider
introducing a new system under which the potential buyer
has to put up a guarantee payment when he signs a takeover
contract."

He said the system would help prevent a repetition of
Ford's withdrawal.  South Korean financial officials have
already imposed stricter rules to prevent bidders from
pulling out of the new auction, saying only binding offers
would be accepted.  As the bids received in the first
auction were non-binding, Ford was able to withdraw without
risking penalties even after being selected as the primary
negotiating partner.  (Agence France Presse  21-Sept-2000)

KOREA CHEMICAL CORP.: To be liquidated
--------------------------------------
Korea Chemical Co. will be liquidated due to sales
difficulties, according to Planning and Budget Minister
Jeon Yun-churl, adding that non-viable state-run companies
in South Korea that waste tax-payer money also will be
liquidated along with their subsidiaries.

"According to the Board of Audit and Inspection, Korea
Construction Management Corp. mismanaged assets by failing
to lay off excessive manpower, but I'll make sure such
counter-productive behavior does not occur again," Jeon
said at a briefing with reporters.

Jeon added changes could be made to the 1998 plan for
manpower reductions in the public sector to allow for
additional lay offs to improve efficiency and save costs.
He said the auditing board has informed the proper
authorities about those companies guilty of mismanaging
funds and his ministry will send out official documents to
speed up the punishment for crimes.

Regarding the sale of state-run corporations, Jeon said
Korea Heavy Industries & Construction Co. (Hanjung) will be
listed on the stock market and seek partnership with
foreign firms.  He added the government will not take part
in the sales procedures for companies designated for
privatization but will leave the decision to major
shareholders.  (Asia Pulse  19-Sept-2000)

SAEHAN MEDIA: Workout plan finalized
------------------------------------
Creditors of the Saehan Group have finalized a debt workout
program for Saehan Media, the group's manufacturer and
exporter of cassette tapes and videotapes.

The workout follows the conclusion of a rehabilitation plan
for its flagship Saehan Industries, Inc. last week. Under
the plan, the creditors will grant a debt-for-equity swap
worth 75 billion won to the company, according to main
creditor Hanvit Bank. Out of the total, debts of 60 billion
won will be converted into common stock, with the remainder
to be swapped for convertible bonds.

Creditors also will extend fresh loans of 100 billion won
to Saehan Media by buying export bills from the company,
Hanvit confirmed.  The creditors' decision lays the
foundation for Saehan Media's rehabilitation.

SSANGYONG CEMENT: Taiheiyo considering $300M investment
-------------------------------------------------------
Ssangyong Cement Industrial Co., Korea's top cement maker,
is seeking an investment of more than $300 million from
Japan's Taiheiyo Cement Corp. to help cut its debt.

The talks with Taiheiyo follow after negotiations to sell a
20 percent stake to U.S.-based Texas Industries Inc. for
$300 million collapsed two months ago.  "Talks with
Taiheiyo Cement have been progressing rapidly, and we
expect the investment to exceed $300 million, which will
give the Japanese company co-managerial rights," said Lee
Sang Chan, a Ssangyong Cement spokesman.

He declined to say when an agreement would be made or how
much of a stake the Japanese company would receive.
Taiheiyo Cement officials were not immediately available
for comment.  Ssangyong Cement aims this year to reduce 1.9
trillion won ($1.7 billion) of debt, or about half of its
total debt incurred before Korea's financial crisis in
1997.

The cement company is also looking to sell real estate and
part of its 69 percent stake in affiliate Ssangyong
Information and Communications Corp.  Still, some analysts
say the investment from Taiheiyo would barely make a dent
in Ssangyong Cement's debt problems.

"Securing the foreign investment will help Ssangyong to
better meet its interest payments on its debts, but
Ssangyong needs a lot more than $300 million to cut its
debt burden," said Kang Jong Lim, an analyst at Daewoo
Securities Co. in Seoul.

Talks with Texas Industries broke down earlier because it
wanted Ssangyong's creditors to provide fresh capital to
the cement maker first, analysts said.  Should Ssangyong
succeed in acquiring Taiheiyo's investment, Chohung Bank,
Korea Development Bank and other creditors plan either to
swap 100 billion won worth of debt into equity or to buy
convertible bonds of the same amount, the Korea Economic
Daily said.

Chohung Bank denied the report, saying "nothing has been
decided at this time."  Ssangyong Cement shares gained 5.7
percent to 1,680 won, after hitting its 15 percent daily
limit earlier today. So far this year, its shares have
fallen 42 percent compared with a 43 percent decline in the
benchmark Kospi index. (Bloomberg  21-Sept-2000)


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

EUROPLUS: To raise RM600M to re-fi debt
---------------------------------------
Europlus Bhd's wholly-owned subsidiary, Europlus
Corporation Sdn Bhd (ECSB), is proposing a RM600 million
private debt securities (PDS) exercise for refinancing its
existing banking facilities.

The proceeds also will be used for the construction of low
to medium-cost properties of ECSB and its subsidiaries
costing below RM250,000 a unit. Europlus (formerly Larut
Consolidated Bhd) said the PDS issue will be comprised of
RM350 million underwritten Murabahah Notes Issuance
Facility (Munif) and RM250 million secured Al-Bai Bithaman
Ajil with Islamic Debt Securities (BAIDS).

The proposed issue, which is guaranteed by Europlus, is
arranged by Abrar Discounts Bhd. The tenure of the Munif
and BAIDS is five and three years respectively. Europlus
said the proposed PDS issue was to tap into the corporate
debt market and to take advantage of the lower cost of
funds. It also enables long term funds to be raised for
repayment and refinancing of bank borrowings to better
match the duration of the projects undertaken by the ECSB
group of companies. (The Edge  21-Sept-2000)

MAH SING GROUP: To raise funds to repay bank loans
--------------------------------------------------
Mah Sing Group Bhd is proposing a fund-raising exercise
that includes a one-for-one rights issue with warrants, a
special Bumiputra issue and employees share option scheme
(ESOS), with the proceeds earmarked to repay bank
borrowings and for the subscription of shares in
subsidiaries.

In a statement to the Kuala Lumpur Stock Exchange this
evening, Mah Sing said it had proposed a one-for-one rights
issue of 43.98 million shares, with the equal number of
warrants. It also proposed a special Bumiputra issue of
12.26 million shares and an ESOS scheme not exceeding 10
per cent of the total paid-up capital at the time of offer
of the options.  Mah Sing had also proposed to double its
authorised share capital from RM100 million to RM200
million.

The issue price of the rights and special issue will be
determined at a later date. It said the proceeds from the
rights issue and special Bumiputra issues totalling RM56.24
million would be used to repay bank borrowings (RM7.43
million), and to subscribe to shares of PT Mah Sing
Indonesia (RM7.41 million), Mah Sing Plastics Industries
Sdn Bhd (RM10 million) and Mah Sing Properties Sdn Bhd
(RM30 million).

Mah Sing said the exercise would increase its paid-up
capital from RM43.98 million to RM154.21 million, assuming
the full exercise of the warrants. (The Edge 20-Sept-2000)

MALAYSIAN AIRLINES: Airline negotiations hit stalemate
------------------------------------------------------
Talks between loss-making flag carrier Malaysian Airlines
System (MAS) and Austalian-based Qantas Airlines about a
possible investment are reportedly "as good as abandoned."

A senior official of Khazanah Nasional, the government's
investment arm, told the Business Times that a deal
presented by Qantas was found to be too much in its favor.
Khazanah had been widely expected to buy a 29 per cent
stake in MAS from Naluri, the single largest shareholder in
the carrier, before selling most of the shares to Qantas,
the newspaper said.

But the official said talks between Khazanah and Qantas
were virtually over as they could not agree on a deal.
Khazanah had now identified a new prospective equity
partner for MAS and initial talks had begun, the newspaper
quoted another unidentified industry source as saying.
The Khazanah official said negotiations between Khazanah
and Naluri were progressing slowly over the pricing of MAS
shares.

"A deal [between Khazanah and Naluri] is inevitable . . .
it is a question of timing and price," he said.

The Business Times in July reported that Qantas was set to
buy a 20 per cent stake, but that management would remain
in Malaysian hands.  MAS posted a net loss of M$258.57
million (about HK$530.5 million) in the year to March 31,
compared with a net loss of M$700 million previously.
(South China Morning Post  21-Sept-2000)


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

QUANTUM M & E ENGINEERING: Facing winding up petition
-----------------------------------------------------
A petition has been filed in the High Court of Singapore
for the winding up of Quantum M&E Engineering Services Pte
Ltd.  The petition involves a S$1.3 million claim filed by
liquidators of Articool Engineering Co Pte Ltd., which
partially owns Quantum M&E Engineering Services Pte Ltd.


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

BANKTHAI: Sells Bt229.7M in assets
----------------------------------
State-owned BankThai PCL (H.BT) has signed an agreement by
which it will sell downtown assets, including land, an
office building and office materials, to the state's Anti
Money-Laundering Office for 229.74 million baht
($1=Bt42.398). The price represents a 50% discount,
according to the bank. BankThai has assets worth around Bt9
billion left to be sold. The bank was formed from the
merger of a failed private bank and 12 closed finance
companies.

KRUNG THAI BANK: Bad loans gone, to restructure
-----------------------------------------------
Having transferring 530 billion baht in bad loans to an
asset management company, state-owned Krung Thai Bank now
will restructure its organization to be leaner and more
efficient, including a cut in the number of its employees.

The asset transfer to Sukhumvit Asset Management Co, owned
by the Financial Institutions Development Fund, will leave
employees in some departments with less work. With 15,811
employees, the bank says it will offer voluntary redundancy
incentives to about 6,000 excess staff. At least 800
employees of the asset management division will be
transferred voluntarily to Sukhumvit Asset Management,
according to bank sources.

Dusit Tengniyom, senior executive vice-president of the
bank, who is responsible for the division, will head the
new asset management company. Two other departments-the
business development unit and the subsidiaries and
investment unit-will be scaled down as they are less active
in the current banking environment.

However, the business banking and corporate banking units
will be expanded as they are more active in dealing with
the bank's large and medium-sized clients, particularly in
risk management, a practice that has become a key element
in commercial bank lending. Along with the restructuring,
the bank will introduce a new job evaluation system, under
which pay rises will hinge on individual performance, a key
element in improving efficiency.

Any employee who cannot work in the new working environment
can apply for the bank's early retirement package, which
will be offered twice in the next five years. Bank sources
conceded that the restructuring and job evaluation
programme had been designed partly to force a certain
number of employees to join the early retirement scheme.

"It's necessary to do this as the bank, by agreement with
its labour union, cannot lay off employees," a bank
management source said.

The subsidiaries and investment unit had been established
with an initial plan to acquire contracts to manage bad
assets for other financial institutions. However, sources
noted that the bank itself did not trust the unit's
capabilities and had transferred its ailing assets to
Sukhumvit Asset Management Co.

In return for the transfer of the bad assets, Sukhumvit
Asset Management will issue promissory notes worth 108
billion baht guaranteed by the FIDF to the bank as payment.
(Bangkok Post  21-Sept-2000)

SIAM CEMENT: Debentures sold to reduce debt
-------------------------------------------
Siam Cement Plc has reported that its issue of 15 billion
baht in debentures, the proceeds from which are to be used
to pay down long-term loans, was fully subscribed ahead of
the deadline.

Subscriptions opened on Sept 4 and were to close on Sept
28.  Vice-president Aviruth Wongbuddhapitak confirmed
investor response was good, which he attributed to
reasonable yields and confidence in the industrial
conglomerate's operation. The company will use funds from
the issue to repay long-term loans set to mature in the
next two years in order to reduce its interest burden.

THAI PETROCHEM.INDUS.: Rehabilitation plan completed
----------------------------------------------------
The long-awaited business rehabilitation plan for Thai
Petrochemical Industry Plc has been completed, according to
Anthony Norman, managing director of Effective Planners Co.

The plan would be submitted to receivership officials in
the business rehabilitation office of the Central
Bankruptcy Court on Monday, he said. TPI creditors are
expected to vote on the plan in November, and Mr Norman
expressed confidence that they would approve it, as the
plan would strengthen the financial health of TPI in the
future.

The main component of the plan would involve converting
outstanding interest of US$756 million into a 75% stake of
TPI's registered capital, with conversion at 5.45 baht a
share.  However, the converted shares could not be sold
until TPI's rehabilitation plan was fully implemented,
which would be in 2004.

TPI chairman Prachai Leopairatana would have the right of
first refusal in buying back the converted shares at 5.45
baht each, plus 1.5 times the prevailing interest rate.
In repurchasing the shares, Mr Prachai could buy all the
shares alone or with other former shareholders of TPI.

Mr Norman said the remaining debts would be divided into
two groups. On the first group totalling $2 billion,
scheduled interest payments would be made, with the
principal repaid on Dec 31, 2004. The same schedule would
apply to a second group of debts totalling $1 billion.

The rehabilitation plan requires the disposal of TPI's non-
core assets totalling $200 million to repay its loans in
2001. There is no mention of which non-core assets would be
sold. Nor does the plan mention a previously contentious
proposal to increase TPI's capital by about $700 million.

However, it does allow for additional sources of funding.
TPI would be allowed to borrow up to a maximum of $250
million, but not to raise new capital until after 2004.
All its existing loans in terms of baht, US dollars, euros
and yen would be converted into one common currency.

Seven TPI affiliates that have filed for business
rehabilitation would adopt plans similar to TPI's.
Mr Prachai said yesterday that he accepted the final plan
as the best one possible under the circumstances. He said
one important improvement was a condition that the
creditors who would be TPI's major shareholders could not
sell their shares until 2004. Earlier agreements contained
no such restriction.

He said the conditions preventing share sales and allowing
for buy-backs later would benefit all concerned and would
help the price of TPI shares improve steadily. As creditors
would not be able to sell their shares over the next four
years, only 25% of the shares would be available for
trading in the market.  Mr Prachai said the amount of
shares to be bought back after 2004 would depend on the
prevailing situation at the end of the rehabilitation
period.

"Earlier, I had already made up my mind to accept whatever
would happen. The conditions offered in the plan are quite
acceptable. However, it is definite now that I would have
to lose my control of TPI as I am no longer its major
shareholder."

He said he was pleased, however, that the planner had
agreed to postpone the disposal of TPI's non-core assets as
they might not fetch good prices at present. In particular,
there was a plan to cut TPI's stake in cement maker TPI
Polene to 30% from 48% after the latter completed its debt-
equity conversion.

Mr Prachai said he had no objection to the disposal but the
selling price of TPI Polene shares had to be properly
considered. However, he said he strongly opposed the idea
of selling TPI's power plant as it played a very crucial
role in the conglomerate's core business and was central to
its business rehabilitation and long-term viability.
(Bangkok Post  21-Sept-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 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 prior written permission of the
publishers.  Information contained herein is obtained from
sources believed to be reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6
months delivered via e-mail. Additional e-mail
subscriptions for members of the same firm for the term of
the initial subscription or balance thereof are $25 each.
For subscription information, contact Christopher Beard at
301/951-6400.

                      *** End of Transmission ***