---

     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, October 3, 2000, Vol. 3, No. 192

                                      Headlines


* A U S T R A L I A *

AUSTRALIAN GOLDFIELDS: Liquidators sue accounting firm
DURBAN ROODEPOORT DEEP: Making provision for $34M bad debt
EISA: Creditors approve Austar purchase
GLOBAL FINANCE : Investors facing $17-30M in losses


* C H I N A  &  H O N G  K O N G *

CHINA TREASURE ENTERPRISE LTD: Facing winding up petition
CHING HING (HLDGS.) LTD.: Posts 1H loss
CHL ENG'G.& DECORATION CO.LTD.: Facing winding up petition
FORTEI HOLDINGS LTD.: Posts 1H net loss
GLOBAL LINK CYBER INT'L: Posts wider 1H net loss
GREAT YIELD INDUSTRIAL LTD: Facing winding up petition
JIALING NONFERROUS & MINMTLS.CO: Facing winding up petition
NETSOFT BUSINESS SYSTEMS LTD: Facing winding up petition
PLASTIC UNION MFG.CO.LTD.: Facing winding up petition
TARGET CENTURY CONSULTANTS LTD: Facing winding up petition
UNITED FAITH INT'L INVEST.LTD: Facing winding up petition
WINADE CO.LTD.: Facing winding up petition


* I N D O N E S I A *

PT TRANS PACIFIC PETROCHEM.INDO.: Gov't to aid partially


* J A P A N *

HAZAMA CORP.: To lose 15.5B yen on partner's failure
KAWADEN CORP: Share price sinks after court filing
LIFE CO.LTD.: Aiful Corp. to take over
MITSUBISHI MATERIALS CORP.: Expects group net loss
NIIGATA CHUO BANK: Criminal charges planned for ex-execs
NIIGATA CHUO BANK: Gov't okays sale to 4 other banks


* K O R E A *

BANK OF CHEJU: Planning massive layoffs
CHO HUNG BANK: Planning massive layoffs
DONG AH CONSTRUCTION: Creditors reject fresh funds
HANBO IRON & STEEL CO.: Creditor banks demand payment
HANVIT BANK : Planning massive layoffs
HYUNDAI ELECTRONICS INDUS: FSS warns of belt-tightening
HYUNDAI ENGIN.& CONST.: FSS warns of belt-tightening
HYUNDAI ENGIN.& CONST.: Struggling with self-rescue actions
KOREA EXCHANGE BANK: Planning massive layoffs
KWANGJU BANK: Planning massive layoffs
PEACE BANK: Planning massive layoffs


* M A L A Y S I A *

KUALA LUMPUR INDUSTRIES: Number of parties interested in it


* P H I L I P P I N E S *

NATIONAL STEEL CORP.: More time for rehab plan wanted


* S I N G A P O R E *

HESHE HOLDINGS: Posts annual loss
SEE HUP SENG: Posts 1H loss
SHINING CORP.: Posts 1H loss
SOGO CO: Singapore stores to close
TEAMSPHERE: Posts annual loss


* T H A I L A N D *

BANGKOK BANK OF COMMERCE: To auction Bt1B in real estate
BANGKOK INDUSTRIAL GAS CO.: Debt to parent restructured
HMC POLYMERS CO.: Debt to parent restructured
MEDIA OF MEDIAS: Subject to preparing rehab plan


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

AUSTRALIAN GOLDFIELDS: Liquidators sue accounting firm
------------------------------------------------------
Liquidators of Australian Goldfields (AGF) have sued
accounting firm Ernst & Young in a Supreme Court writ that
alleges that Ernst & Young's representations in an audit
report of 1996-97 annual accounts constituted misleading or
deceptive conduct.

The writ claims damages from the accounting firm in an
unspecified amount. The audited accounts allegedly failed
to reflect the financial effects of a joint venture
purchase of Wafi from Rio Tinto and the $A7.5 million
underwriting of a rights issue by Striker Resources.

DURBAN ROODEPOORT DEEP: Making provision for $34M bad debt
----------------------------------------------------------
Unauthorised transactions in the Australian offshoot of
Durban Roodepoort Deep (DRD) has forced the big South
African gold producer to make a bad-debt provision of 135
million rand ($A34 million) in its June-year accounts.

DRD, which is listed on the local market, said the
unauthorised transactions had only recently become
apparent.  The transactions - no other detail was given
because of likely litigation - were discovered by a special
committee set up by the group's new-look management and
board "as a result of the reduction in value, as well as
the poor returns, on investment in Australasia."

DRD said the special committee was "examining various
issues relating to the Australasian business and in
particular certain unauthorised transactions which have
only recently become apparent."

"The committee has taken and is continuing to take steps to
ensure that the control framework is strengthened and to
recover amounts due to the group," DRD said.

DRD has been active in the local mining scene for a couple
of years but has not enjoyed any real success. Its takeover
of the Sydney-based gold producer  Hargraves was something
of a disaster, with Hargraves' NSW gold mine flooded
beyond saving shortly after the takeover was completed.

DRD also had an unsuccessful fly at the Sydney-based Fijian
gold miner Emperor Mines and has more recently moved into a
control position at the Sydney-based PNG gold producer,
Dome Resources.  Dome's Tolukuma mine is a handy operation,
but earlier this year caused the group heartburn after a
box of cyanide pellets was dropped to the jungle floor from
a helicopter.  (The Age 2-October-2000)

EISA: Creditors approve Austar purchase
---------------------------------------
Creditors of financially distressed Internet service
provider eisa Ltd approved a proposed takeover bid by
Austar United Communications Ltd.  eisa administrator
Andrew Love plans to finalize the sale with a purchase
agreement with Austar and to seek directions on the
transaction from the courts next week.

Austar bid $A13 million ($US6.97 million) last week for the
direct purchase of eisa after its original $24.4 million
takeover bid failed to attract a required 90 percent of
acceptances from eisa shareholders.

GLOBAL FINANCE : Investors facing $17-30M in losses
---------------------------------------------------
Litigation has begun in Western Australia to recover
over $A1.3 million from the Global Finance Group.
Injunctions were sought by liquidator Simon Read against
the Group principal John Margaria and his wife over their
private assets.  Read claims in writs that funds were
transferred to the Margarias and their private companies in
transactions which breached John Margaria's fiduciary
duties as director of Global.

Read previously has told a Legislative Council committee
that nearly 500 investors face losses amounting to between
$A17-30 million. Read said the return to investors, most of
whom are elderly, depends on sales of properties used to
secure loans. Many of the properties have been overvalued,
however.

Read's colleague, Geoff Herbert, told the inquiry a
competent auditor should have been able to detect problems
and possible fraud long before the collapse of the company
in early 1999. Read says valuer Ron O'Connor was used
almost exclusively to value properties for some Global
clients.  (The West Australian, The Australian Financial
Review  29-Sept-2000)


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

CHINA TREASURE ENTERPRISE LTD: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on October 18 on the petition of
Wong Yau Wan and Wong Siu Wah Edit for the winding up of
China Treasure Enterprise Limited. A notice of legal
appearance must be filed on or before October 17.

CHING HING (HLDGS.) LTD.: Posts 1H loss
---------------------------------------
Ching Hing (Holdings) Ltd. recorded a net loss of HK$8.3
million for the six months ended June 30. That was a 350%
turnaround from the HK$20.9 million profit it posted for
the same period a year earlier. Loss per share was 4.28 HK
cents compared with earnings of 13.90 HK cents the year
before.  Revenue fell 27.1 percent to HK$65.2 million. No
interim dividend was proposed.

CHL ENG'G.& DECORATION CO.LTD.: Facing winding up petition
----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 6 on the petition of
Chan Sheung Yin for the winding up of CHL Engineering &
Decoration Company Limited. A notice of legal appearance
must be filed on or before December 5.

FORTEI HOLDINGS LTD.: Posts 1H net loss
---------------------------------------
Hong Kong-based investment company Fortei Holdings Ltd.
recorded a net loss of HK$1.9 million for the six months
ended June 30. That compares with a HK$43.9 million net
loss for the same period a year earlier. Loss per share was
0.44 HK cent, compared with 10.97 HK cents a year before.
Revenue plunged 97.5 percent to HK$1.3 million. No interim
dividend was proposed.

GLOBAL LINK CYBER INT'L: Posts wider 1H net loss
------------------------------------------------
Global Link Cyber International Ltd., a property investor
seeking to develop high-tech business, recorded a net loss
of HK$147.3 million for the six-month period ended June 30.
That was up from a HK$134.1 million net loss for the same
period the year prior. Loss per share was 3.06 HK cent
compared with 3.05 HK cents the year before.  Revenue
plunged 52.1 percent to HK$12.5 million. No interim
dividend was proposed.

GREAT YIELD INDUSTRIAL LTD: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 6 on the petition of
Hui Wing Foo for the winding up of Great Yield Industrial
Limited. A notice of legal appearance must be filed on or
before December 5.

JIALING NONFERROUS & MINMTLS.CO: Facing winding up petition
-----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 1 on the petition of
Nanyang Commercial Bank, Limited for the winding up of
Jialing Nonferrous & Minmetals Company Limited. A notice of
legal appearance must be filed on or before October 31.

NETSOFT BUSINESS SYSTEMS LTD: Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 6 on the petition of
Standard Chartered Bank for the winding up of Netsoft
Business Systems Limited. A notice of legal appearance must
be filed on or before December 5.

PLASTIC UNION MFG.CO.LTD.: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 15 on the petition of
Lam Chun Ming for the winding up of Plastic Union
Manufacturing Company Limited. A notice of legal appearance
must be filed on or before November 14.

TARGET CENTURY CONSULTANTS LTD: Facing winding up petition
----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 22 on the petition of
Yuen Mang Yan, Virginia for the winding up of Target
Century Consultants Limited. A notice of legal appearance
must be filed on or before November 21.

UNITED FAITH INT'L INVEST.LTD: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 12 on the petition of
Melrose Clothing Company Limited for the winding up of
United Faith International Investment Limited. A notice of
legal appearance must be filed on or before December 11.

WINADE CO.LTD.: Facing winding up petition
------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 8 on the petition of
Kwok Wai Fong for the winding up of Winade Company Limited.
A notice of legal appearance must be filed on or before
November 7.


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

PT TRANS PACIFIC PETROCHEM.INDO.: Gov't to aid partially
--------------------------------------------------------
Though the Indonesian government has no plans to bail out
the financially-troubled, US$2.3 billion integrated
petrochemical industry in Tuban, East Java, chairman of the
Indonesian Bank Restructuring Agency (IBRA) Cacuk
Sudarijanto has confirmed that since the petrochemical
center was a strategic industry, the government would help
PT Trans Pacific Petrochemical Indotama (TPPI) seek new
investors.

"The government is still thinking of ways to invite new
investors without having to bailout or take over the
company's debts," Cacuk told reporters on the sidelines of
a dialogue on the economy.  "It is part of the company's
restructuring process."

Cacuk was responding to reports that the government via
IBRA would take over TPPI due to strong pressure from the
company's Japanese creditors.  The government had
previously bailed out another petrochemical center called
PT Chandra Asri whose creditors also included Japanese
giant trading houses.

The Tuban petrochemical center is controlled by the
Tirtamas Group, a local conglomerate which has huge debts
with IBRA. The Tirtamas Group borrowed money from local
banks prior to the economic crisis but after the crisis the
loans turned sour. The banks then transferred the non-
performing loans (NPLs) to IBRA, a unit under the finance
ministry, whose mandate includes restructuring the NPLs in
the banking sector.

The development of the petrochemical center came to a halt
in 1998 after the country was hit by an economic crisis and
social unrest.  Reports said that only around 40 percent of
the project had been completed.  Because of the crisis, no
investors want to continue financing the project including
the existing creditors: JGC Corp., Nissho Iwai Corp. and
Itochu Corp.

Reports said that out of some $900 million which had been
invested in the petrochemical center, JGC contributed $600
million.  Another $1.3 billion is needed in order for the
petrochemical project to be completed some time in 2002.
Reports said that the Tirtamas Group had so far failed to
invite new investors even though the group had agreed to
become a minority in the project.

The government took a controversial step in June when
President Abdurrahman Wahid instructed IBRA to convert all
of its $460 million investments in the petrochemical center
PT Chandra Asri into equity.  The move effectively took
over Chandra Asri's debts owed to foreign creditors
including Japanese trading houses.

Meanwhile, the foreign creditors led by Japan's Marubeni
Corp. agreed to also convert $100 million, part of its
loans to Chandra Asri, into a 20 percent equity.  The
remaining $700 million loan would be repaid in 12 years.

Abdurrahman's deal with Marubeni received a negative
response from analysts, saying that the deal was not
transparent and the taking over of the company's debts by
the government would set a bad precedent for future debt
restructuring processes.

Noted economist Sri Mulyani Indrawati said on Tuesday that
if the government did take similar measures with the Tuban
petrochemical center, it could create a further burden to
the already strained state budget.  She pointed out that
other indebted companies would also demand similar special
treatment.

Sri also said that the country's international donors would
be deeply disappointed because they would think that the
money they lent to the government would be used to bailout
the debts of the private sector instead of financing the
development of crucial infrastructure in rural areas or to
help the poor survive the economic crisis.

The government is expected to meet its traditional donors
grouped in the so-called Consultative Group on Indonesia
(CGI) on Oct. 17-18 in Tokyo, Japan, to seek another $4.8
billion loan to help finance the deficit in the 2001 state
budget. (Jakarta Post  28-Sept-2000)


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

HAZAMA CORP.: To lose 15.5B yen on partner's failure
----------------------------------------------------
General contractor Hazama Corp. reports it may suffer a
loss of up to 15.546 million yen on a business partner's
failure. The company expects to record an extraordinary
loss of about 3.4 billion yen for the year ending March
2001, a loss that already has been factored into its
earnings estimate.

Hazama is expected to assume responsibility for a 13.086
million yen debt guarantee for a Tokyo-based real estate
firm, which in turn will file for a special liquidation,
company officials have confirmed. The remainder of the 15.5
million yen sum includes 2.404 million yen in loans as well
as several million yen in claims to the company.

KAWADEN CORP: Share price sinks after court filing
--------------------------------------------------
Kawaden Corp. shares were bidding for 41 percent lower
after the company filed for court protection from creditors
last Friday. The company reported group liabilities of 25.3
billion yen ($234 million). Shares of the Tokyo-based
company saw many more sell offers than buy bids, preventing
trading under exchange rules. Shares were last offered at
44 yen, down from Friday's close of 74. The Tokyo Stock
Exchange will delist Kawaden's shares on Dec. 30.

LIFE CO.LTD.: Aiful Corp. to take over
--------------------------------------
Aiful Corp reportedly will take over the business of Life
Co Ltd later this month.

According to the Nihon Keizai Shimbun, consumer finance
firm Aiful is to begin diligence on Life Co.'s finances
immediately. It could reach a formal agreement with the
Tokyo District Court and receivers as early as next week.
If the deal goes through, Aiful will make Life Co. a wholly
owned subsidiary that will focus on the credit card
business, perhaps developing into a comprehensive financial
services company at a later time.

Life Co.'s trade name would be kept as well as all its
employees, in addition to its assets of about 1 trln yen.
Life Co. filed for protection from creditors under the
Corporate Rehabilitation Law in May with debts of around
960 billion yen.

MITSUBISHI MATERIALS CORP.: Expects group net loss
--------------------------------------------------
Mitsubishi Materials Corp. is revising its projections for
the first half of its fiscal year to expecting a 3 billion
yen consolidated net loss for the six-month period April-
September. Earlier, the company was projecting a 4 billion
yen net profit.

Mitsubishi Materials also lowered its consolidated sales
estimate for its fiscal year first half to 540 billion yen,
down from 550 billion yen estimated when it projected a
profitable semester.  The nonferrous metal smelter is
attributing the turnaround to a special loss of some 7
billion yen incurred on the liquidation of a unit
manufacturing computer-use magnetic disk boards. The
company is a wholly owned subsidiary of Mitsubishi Aluminum
Co.

NIIGATA CHUO BANK: Criminal charges planned for ex-execs
--------------------------------------------------------
Government-appointed administrators at the failed Niigata
Chuo Bank are planning to file criminal charges against
former president Ryutaro Omori and other former senior bank
officers on suspicion of breach of trust.

The criminal complaint is expected to prompt a formal
investigation by Niigata Prefectural Police to determine
the legal responsibility for the numerous bad loans that
contributed to the failure of the second-tier regional bank
last October. Niigata Chuo reported a capital deficit of
168.7 billion yen as of March 31.

According to an in-house investigation launched by the
Niigata Chuo administrators, Omori, 72, a grandson of the
founder of the Niigata-based bank, wielded enormous
influence within the board on lending policy.  The sources
said about 40 of the loan deals -- totaling 180 billion yen
-- that had been brokered by Omori in what has become known
as the "Omori file" have become virtually irrecoverable.

Most of these loans were reportedly extended for resort
development projects such as golf courses, theme parks and
hotels.  The sources said Niigata Chuo continued to dole
out questionable loans even after the bank was ordered last
June by the Financial Supervisory Agency, the predecessor
of the Financial Services Agency, to replenish its depleted
capital.

The criminal investigation is expected to focus on those
questionable loans and the police hope to establish
evidence of violation of the commercial code.  Omori, who
succeeded his uncle as president of Niigata Chuo in 1989,
was forced to relinquish his job after the FSA issued the
capital replenishment order last June. (Japan Times Online
01-Oct-2000)

NIIGATA CHUO BANK: Gov't okays sale to 4 other banks
----------------------------------------------------
The government's Financial Reconstruction Commission has
approved a proposal by Niigata Chuo administrators to sell
the bank to four provincial banks.  The four are Daishi
Bank, based in Niigata city, Taiko Bank based in Nagaoka,
Niigata Prefecture, Hachijuni Bank, based in Nagano, Nagano
Prefecture, and Higashi-Nippon Bank, based in Tokyo.

As to the failed bank's loan claims in Gunma Prefecture,
the bank will continue negotiations with Gunma Bank and
Towa Bank, both based in Maebashi, Gunma Prefecture, on a
business transfer. The receivers plans on Niigata Chuo Bank
concluding all deals on the business transfer by the end of
December.


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

BANK OF CHEJU: Planning massive layoffs
CHO HUNG BANK: Planning massive layoffs
HANVIT BANK : Planning massive layoffs
KOREA EXCHANGE BANK: Planning massive layoffs
KWANGJU BANK: Planning massive layoffs
PEACE BANK: Planning massive layoffs
---------------------------------------------
The nation's ailing commercial banks, including Hanvit
Bank, Korea Exchange Bank and Cho Hung Bank, are planning a
massive layoffs as part of their restructuring scheme to
meet the guideline set by the government.

Industry sources said that six banks, which also include
Peace Bank, Bank of Che Ju and Kwangju Bank, are expected
to dismiss a total of about 3,000 workers within the next
couple of months. The banks are required to submit their
restructuring programs to the government before the end of
September.

Besides, even health banks such as Kookmin Bank and Housing
and Commercial Bank are expected to streamline their
operations, including layoffs, for the projected
integration, allegedly in a voluntary manner. Among the six
affected banks, Hanvit has already informed its trade
union of its decision to lay off 14.5% of workforce or
1,550 employees.

Cho Hung Bank, which satisfied the BIS-based capital
adequacy ratio of more than 10%, also intends to fire about
200 workers in order to show its determined will for
management reform, according to industry sources. Also,
Peace Bank, Kwangju Bank and Bank of Che Ju are seeking
10%-15% of layoffs.

However, the sources noted that reaching an agreement with
their respective union looks tough. Recently, the Financial
Supervisory Commission, the bank watchdog body, has
demanded the banks to attach an agreement of the trade
unions related to the layoff plan in the their plan for
normalization of operation.  Instead, the banks are
scheduled to be tipped with public fund from the
government. (Korean Industry Update  29-Sept-2000)

DONG AH CONSTRUCTION: Creditors reject fresh funds
--------------------------------------------------
In a move that dealt a heavy blow to struggling Dong Ah
Construction, Seoul Bank and other creditor banks last week
tentatively turned down Dong Ah's request for fresh loans
of 460 billion won and a debt-for-equity swap amounting to
1.8 trillion won.

In announcing the decision, the banks expressed uncertainty
over the firm's future prospects.  Since it signed
restructuring agreements with its creditor banks two years
ago, the firm has received financial support totaling 1
trillion won. Except for the progress it made with projects
related to the Great Man-made River (G.R.M.) Project in
Libya, however, Dong Ah's business showing has been less
than impressive.

In the first half of this year, for example, Dong Ah posted
operational profits of only 6.7 billion won, a fraction of
the 80.2 billion won target it announced to creditors.
Officials of some creditor banks indicated that it may be
time to put the firm under court control.

"In some ways we've held onto Dong Ah either out of concern
for the government or fear of shouldering the burden of
loan-loss reserves. To remove the further burden on banks,
it may be necessary to consider putting the firm under
court receivership," said a bank official.

Despite its promises to respect the decision of creditor
banks, the government appears equally troubled over the
fate of Dong Ah.  Sources said that while the government is
aware of the burden on creditors, it is not eager to see
Dong Ah handed over to the court, as that would be the same
as admitting that workout programs were a mere "shelter"
for insolvent firms.

The government is also worried that court receivership
would put a period to the firm's international activities.
Sources also said that given that the firm's loans amount
to 3.5 trillion won, putting it under court receivership
would require the further injection of state funds. Dong Ah
is pleading with creditor banks for fresh loans, saying
that with the extra funds, the firm could achieve
normalization of its business activities as early as next
year.

Despite being in the red in the first half, Dong Ah
expressed confidence that, thanks to new orders, it could
achieve sales targets of 1.8 trillion won this year and 2
trillion won in 2001.  An official voiced bright prospects
for the firm's future, saying orders from Middle East
countries are likely to rise owing to an increase in oil
prices.

Libya also owes the firm about $600 million in uncollected
bonds, the official said. Dong Ah is also expected to
receive $300 million when it completes a construction
project currently under way. (Korea Herald 02-Oct-2000)

HANBO IRON & STEEL CO.: Creditor banks demand payment
-----------------------------------------------------
Creditor banks of Hanbo Iron and Steel Co. have asked a
potential US buyer to make payment soon or face a
cancellation of its deal to buy the insolvent South
Korean firm, officials said Monday.

Korea Asset Management Corp. (KAMCO), a state agency in
charge of Hanbo's sale, said the ultimatum was sent to a
US-based consortium led by Nabors Capital.  Under a non-
binding contract signed in March, the consortium was to pay
480 million dollars by Saturday for the acquisition of
Hanbo's assets including equipment, intellectual property
and all other rights. But the consortium failed to pay up
by the deadline.

Hanbo went bankrupt due to snowballing debts in January
1997, triggering a massive scandal involving the son of
former president Kim Yong-Sam. The company's collapse also
sparked a chain of corporate failures, helping precipitate
the economic crisis which forced Seoul to go cap-in-hand
for a 58-billion-dollar bailout from the International
Monetary Fund in late 1997.

Hanbo's total debt was estimated at 4.9 trillion won (4.4
billion dollars) with its monthly loss reaching five
billion won. Most of Hanbo's facilities remained idle,
except for a steel rod production plant.  "We have sent a
letter asking the consortium to clarify its final position
as soon as possible," a KAMCO official told AFP. He refused
to give details such as dates.

The contract has no penalty provisions. But the KAMCO
official warned the consortium could face legal action if
it pulled out of the deal. "We have met all of their
demands. If there is no reply from the consortium by the
date we have set, we will take legal action, including a
suit for compensation," he said.

He said US consortium members had been at odds about issues
related to stakes and management rights after Hanbo was
taken over.  "The consortium has internal disputes, with
some members more interested in selling Hanbo after their
acquisition."

South Korean newspapers said the consortium had urged
creditors to reduce the price by 100 million dollars. But
KAMCO officials said they would not consider reducing the
price.  The consortium has reportedly complained that its
demands including the exclusive use of port facilities had
not been met.  But KAMCO officials said they had obtained
approval for the exclusive use of port facilities, along
with a government promise not to saddle the consortium with
any liability for taxes.  (Agence France Presse  02-Oct-
2000)

HYUNDAI ELECTRONICS INDUS: FSS warns of belt-tightening
HYUNDAI ENGIN.& CONST.: FSS warns of belt-tightening
-------------------------------------------------------
Hyundai Electronics Industries (HEI) and Hyundai
Engineering and Construction (HEC) will have to make "bone-
cutting" restructuring efforts next year if they want to
prevent a recurrence of the kind of liquidity crises they
experienced this year, the Financial Supervisory Service
said in a report yesterday.

The FSS said HEI will see a total of 2.35 trillion won
worth of bonds mature next year, while for HEC, the figure
is expected to reach 1.69 trillion won. Together, the two
companies will have to make good on over four trillion won
worth of maturing bonds next year.

HEI's burden is particularly heavy between December 2000
and February next year. In December, 400 trillion won worth
of bonds come due, followed by 300 billion won each in
January and February. It will have to repay or roll over
100 billion won worth of bonds each month between May and
July, 200 billion won in August, 500 billion won in
November and 750 billion won in December.

The monthly breakdown of maturing bonds for HEC next year
shows 100 billion won each month from January to August
except April and June, 200 billion won in September, 245
billion won in October and 645 billion won in December.
The company is obliged to repay 30 billion won worth of
bonds this month, 70 billion won next month and 190 billion
won in December.

An FSS official said the Hyundai Group could be plagued by
another liquidity crisis next year unless it steps up
restructuring efforts. (Korea Herald  02-Oct-2000)

HYUNDAI ENGIN.& CONST.: Struggling with self-rescue actions
-----------------------------------------------------------
Hyundai Engineering & Construction (HEC), which has gone
through two liquidity crises this year, has seen its self-
rescue plans frustrated since the end of September.

According to HEC's main creditor Korea Exchange Bank (KEB),
the flagship unit of Hyundai has failed to execute some
major steps of a self-rescue plan announced August 13 with
its failure to sell off shares of Hyundai Merchant Marine
(HMM) and Hyundai Heavy Industries (HHI) in September as
expected.  In August, HEC managed to raise W83.8 billion
out of its target of W103.5 billion for that month by
selling W73.7 billion worth of real estate and by spinning
off an energy unit for W3.4 billion and Hyundai Steel Pipe
for W6.7 billion.

In September, however, HEC fell far short of its target of
raising W280 billion, with only W100 billion raised through
the sale of its cement factories in Bangladesh for US$48
million and by selling more real estate in Taejon.  HEC has
had to change its original plan and is now carrying out the
sale of shares of HHI before selling HMM shares, but
Singapore investment firm D.I. Holdings has already missed
the September 25 deadline for paying W222.6 billion for a
stake in HHI.

KEB vice president Lee Yeon-su said the bank will just have
to trust HEC's assurances that the sale of HHI shares and
the sale of real estate and collection of debts from Iraq
will take place by early October as claimed. (Digital
Chosun  30-Sept-2000)


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

KUALA LUMPUR INDUSTRIES: Number of parties interested in it
-----------------------------------------------------------
Several listed and private parties have expressed interest
in taking over the ailing Kuala Lumpur Industries Holdings
Bhd (KLIH), among them, the owners of property group Taman
Equine (M) Sdn Bhd, according to accounting firm Horwath,
Mok and Poon.

On June 8, KLIH had entered into an agreement with the
vendors of Taman Equine to acquire the company under a
reverse takeover exercise. However, Pengurusan Danaharta
Nasional Bhd appointed Horwath as the special administra-
tors for KLIH on June 30.

Speaking to reporters after KLIH's annual general meeting,
a partner of the accounting firm Mok Yuen Lok said the
special administrators would first look at Taman Equine's
proposal before considering the others. However, he
stressed that it was not an open-bid exercise.

The special administrators are preparing to submit a
restructuring proposal to Danaharta. They expect to
complete the proposed exercise by next year. Mok said
Howath did not rule out a capital reduction in the proposal
as it has to consider the best option for both the
shareholders and KLIH.

At the same function, KLIH's joint chief operating officer
Kwong Lok Wah said the company's wholly-owned unit People
Insurance Company (M) Bhd, which is the jewel of the group,
is not under the special administration of Danaharta.
He said People Insurance is a financially viable insurance
company, especially with its 60 per cent market share of
the local motorcycle insurance business.

The insurance company was the main contributor to the
group's operating revenue over the last two financial
years. Accounting for over 90 per cent of the group's
turnovers during the two financial years, it was the only
profitable division in the group. The company contributed
RM20.09 million and RM19.15 million for the financial years
ended March 31, 1999 and 2000, respectively.

On the consolidation taking place in the insurance
industry, Kwong said the company has not been involved in
any negotiations on this matter. KLIH registered a net loss
of RM127.9 million for the financial year ending March 31,
2000. For its last financial year, its accumulated losses
stood at RM739.64 million while the group's borrowings were
RM373.86 million. (The Edge  29-Sept-2000)


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

NATIONAL STEEL CORP.: More time for rehab plan wanted
-----------------------------------------------------
Unable to meet last Friday's deadline for filing an
alternative rehab plan, National Steel Corp. (NSC) majority
shareholder Hottick Investments, Ltd. - whose 2.02 million
NSC shares are held by Malaysian government agency
Danaharta Pengurusan Berhad -- is asking for more time to
finalize a working rehab plan for the steel maker.

With the expiration of the debt-moratorium of cash-strapped
NSC last week, the corporate regulator is once again torn
between a move to liquidate what used to be the country's
largest steel maker and a request for more time to finalize
an alternative rehabilitation plan.

Securities and Exchange Commission (SEC) officials privy to
the NSC case said the SEC will decide this week whether to
grant the extension of the debt reprieve or move for
liquidation, as proposed by the steel maker's interim
receivership committee (IRC).

"We will have to decide on what to do...If there really is
no investor, we cannot have a rehabilitation. Although
we are not too keen on extending the debt reprieve, there
are still many ways of convincing us why it should be
extended...if an investor is sure to come in, we might just
extend it," the source said. (Business World 2-Oct-2000)


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

HESHE HOLDINGS: Posts annual loss
---------------------------------
Heshe Holdings recorded a $3.9 million loss for the
financial year ended June 30. That was more than double its
$1.5 million loss for the previous year. Turnover rose 9.8
per cent to $60.4 million, reflective of the fact that the
eight Country Manna restaurants it owns here were
profitable. Cash flow for the group remains healthy,
according to Heshe, which will not declare a dividend.

SEE HUP SENG: Posts 1H loss
---------------------------
See Hup Seng recorded a first-half net loss of $2.9
million, a substantial turnaround from the net profit of
$898,000 for the same period a year ago. Turnover fell 26
per cent to $14.4 million. Loss per share was 2.65 cents
compared to earnings per share of 0.85 of a cent the first
semester last year. The company attributed the turnaround
primarily to low volumes in the construction sector.

SHINING CORP.: Posts 1H loss
----------------------------
Shining Corporation posted a net loss of $104,000 for the
half-year ended June 30. By comparison, the company had a
$602,000 net profit the prior year. Loss per share was 0.17
of a cent. Turnover fell 58 per cent to $11.6 million.

SOGO CO: Singapore stores to close
----------------------------------
Japanese department store operator Sogo Co. permanently
will shut its two stores in Singapore on Saturday. The pair
will be the first of Sogo's overseas branches to cease
operations after the company filed for court protection
from creditors in July. Sogo has operated a department
store in Singapore since 1986 and a supermarket since 1989.

TEAMSPHERE: Posts annual loss
-----------------------------
Despite its turnover more than doubling to $44.4 million,
Teamsphere slipped into the red with a $1.3 million net
loss for the year ended June 30. Loss per share was 1.34
cents.


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

BANGKOK BANK OF COMMERCE: To auction Bt1B in real estate
--------------------------------------------------------
Bangkok Commercial Asset Management Co., which was set up
to manage the assets of foremer Bangkok Bank of Commerce,
or BBC, is inviting bids for a second auction of real
estate assets Oct. 12.

The asset management company was setup in late 1998 to
manage the bad assets of BBC after the bank was closed by
the authorities during the financial crisis. BBC was the
first Thai bank to collapse and was initially seized by the
authorities in May 1996.

At the auction, 87 items of real estate valued at around 1
billion baht ($1=THB42.094) will be on offer.  The assets
include two factories in Bang Pa-in, 80km North of Bangkok,
a residential condominium building valued at THB300 million
in the northern city of Chiang Mai, and a plots of vacant
land.

More auctions are planned every quarter. Next year a 36-
story building in downtown Bangkok, the ICE Tower, will be
auctioned.  At its first auction the company sold only
THB90 million worth of real estate, said Sommai
Pathomvichai, Bangkok Commercial Asset Management's
managing director, blaming poor publicity. He added that
from January to August this year the company has collected
THB3.29 billion in loans.

About THB500 million worth of real estate was also
transferred to the company during the period.  Since it
actually began operation in February 1999, BAM has
collected THB12,46 billion baht in cash and real estate.
It's total of 58,658 debtors owes it THB141.85 billion.
Sommai said the company was given a total of five years to
complete the debt restructuring. (AsiaGatway  2-Oct-2000)

BANGKOK INDUSTRIAL GAS CO.: Debt to parent restructured
HMC POLYMERS CO.: Debt to parent restructured
-------------------------------------------------------
Bangkok Bank PCL (H.BBK) has restructured debt owed to
the bank by its two unlisted affiliates, HMC Polymers Co.
and Bangkok Industrial Gas Co.

The bank has accepted 0.81 million common shares and 0.23
million preferred shares in HMC Polymers worth 165.7
million baht ($1=THB42.385), the bank said in a filing to
the Stock Exchange of Thailand.  After the share transfer,
Bangkok Bank's holding in the company increases to
15.2% of HMC Polymers' paid-up capital, the bank said.

In a separate filing, the bank said it has accepted the
transfer of 0.72 million common shares in Bangkok
Industrial Gas worth THB326.2 million. The transfer
increases the bank's holdings to 18.5%.  The bank provided
no information on its previous holdings in both companies.
Bangkok Bank closed Thursday down THB1 to THB22.75.
(AsiaGatway  2-Oct-2000)

MEDIA OF MEDIAS: Subject to preparing rehab plan
------------------------------------------------
Under new procedures and guidelines established by the
Stock Exchange of Thailand for listed companies whose
financial statements show negative shareholders' equity,
Media of Medias Public Company Limited (MEDIAS) has been
determined to be subject to preparing a rehabilitation
plan.

In making its decision, SET considered the audited yearly
financial statements as of 31 December 1999 filed by
Medias, which indicated shareholders' equity of less than
zero.  Therefore, the Exchange will proceed under the
requirements of its Rules Governing Delisting of
Securities, 1999.

1. MEDIAS must improve the company qualifications to
remain being a listed company.
2. The company must inform SET whether it decide to
prepare a rehabilitation plan for presentation to company
shareholders, ask for voluntary delisting, or try other
options which will benefit all stakeholders involved in the
company. The company must also adopt a time schedule for
implementing its decision, which must be reported to the
SET by November 1.
3. MEDIAS must: 3.1 Appoint an independent financial
advisor to assist management in the preparation of a
rehabilitation plan; 3.2 Fully cooperate with the
independent financial advisor in organizing meeting to
present the rehabilitation plan to analysts and
shareholders and then propose it to the shareholders for
their approval; 3.3 Cooperate with the independent
financial advisor in reporting to the SET every three
months on its actual implementation and development
compared to the rehabilitation plan.
4. The SET has retained posting the SP sign to
prohibit further securities trading in MEDIAS until the
causes of being subject to preparing a rehabilitation plan
have been eliminated. However MEDIAS may request the SET to
allow securities trading in the REHABCO sector in case that
debt restructuring has been completed by more than 50%
worth of total debts and the rehabilitation plan have
either been approved by its shareholders or the Bankruptcy
Court according to the conditions specified by the SET.

The SET is asking the shareholders and general investors to
study the complete set of MEDIAS's financial statements
published in the R-SIMS system.  They also are requested to
closely follow up on the proposed rehabilitation plan
prepared by the company and its financial advisors which
will be presented to their shareholders meeting. (Stock
Exchange of Thailand  29-Sept-2000)


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