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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

           Thursday, October 5, 2000, Vol. 3, No. 194

                                    Headlines


* A U S T R A L I A *

HIH INSURANCE: Exec takes big loss on share sale
ISIS COMMUNICATIONS: Head uses own funds to pay margin debt
LIBERTYONE: Looking at restructuring options
PETSEC ENERGY LTD.: Selling Gulf of Mexico lease interests


* C H I N A  &  H O N G  K O N G *

AEON CREDIT SERVICE: Secures $360M facility to cut costs
CITY e-SOLUTIONS: Investors lose big
SHOW8.COM: To slash workforce before merging
WIRELESS INTERNETWORKS LTD.: Posts 1H net loss


* I N D O N E S I A *

PT DBS SECURITIES: To cease brokerage ops in Indonesia
PT KIANI KERTAS: Gov't restructures debt


* J A P A N *

BANK OF JAPAN: To close pair of branches
CHIYODA LIFE: Given ultimatum
HAZAMA CORP: S'holders sue for political donations
KUMAGAI GUMI: S'holders sue for political donations


* K O R E A *

DAEWOO MOTOR: Creditors plan emergency funding steps
DAEWOO TELECOM: To sell IT sector to CVC
NATIONAL PENSION CORP: Huge losses on stock investments


* M A L A Y S I A *

KELANAMAS INDUSTRIES: Transfers land in debt settlement
PERUSAHAN SADUR TIMAH: Debt-ridden firm in pursuit of money
TECHNOLOGY RESOURCES INDUS.: Shares fall on rumors
TIME ENGINEERING: Share sale may be put off
TRANS CAPITAL HOLDINGS BHD: OK'd for restructure
UNITED ENGINEERS MALAYSIA: Share sale may be put off


* S I N G A P O R E *

EAGLE SERVICES ASIA: Repair license suspended


* T H A I L A N D *

NTS STEEL GROUP: Files rehab petition, appoints planner
PROPERTY PERFECT PLC: Strikes debt rehab pact
THAI LUBE BASE: Cabinet endorses debt plan


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

HIH INSURANCE: Exec takes big loss on share sale
------------------------------------------------
HIH Insurance director and former FAI Insurance chief
executive Mr Rodney Adler has sold a large chunk of his
holding in HIH at a substantial loss.

While other HIH directors have been buying following the
share slump, Mr Adler announced yesterday he had sold 2.5
million shares two weeks ago at an average of 67›. The
selling - which reduces Mr Adler's stake to 6.9 million
shares, or 1.4 per cent - comes only three months after he
topped up his holding when the shares were trading at about
$1.

In late June, Mr Adler paid slightly more than $2 million
for two million shares, saying HIH "could be a billion
dollar company again." However, barely three months later
in September, HIH announced a disastrous profit and the
forced sale of its personal lines business and the shares
halved in value.  Sharemarket analysts said Mr Adler's
selling indicated a lack of confidence in HIH despite his
recent comments in support of the embattled company.

"We have a future but we have to really buckle down. We
definitely have a future. No question, no doubt, no
ambiguity," Mr Adler said last month.

HIH chief executive, Mr Ray Williams, has led a buying
spree by HIH directors since the sharemarket rout. HIH
shares ended up 4› to 51›. (Australian Financial Review
04-Oct-2000)

ISIS COMMUNICATIONS: Head uses own funds to pay margin debt
-----------------------------------------------------------
Mr Adam Radly, managing director of Isis Communications,
having drawn on personal funds for five months, has
resorted to selling down his own shareholding in the online
education group to repay an outstanding margin lending
debt.

Radly Corp, Mr Radly's investment vehicle, yesterday
announced it had sold 1.24 million shares in Isis over the
fortnight beginning September 14.  With the share price
averaging 46c during the two-week period, Radly Corp is
likely to have realised about $570,000 from the sale.

It now owns 74.3 million shares in Isis. Mr Radly owns
around 95 per cent of those while the remainder are owned
by Mr Radly's brother, Nayer. Given Mr Radly's average
entry price was $1.30, the transaction has cost him around
$1 million, something he said yesterday was "not impressing
the hell out of me."

"I feel extremely annoyed the market has downgraded the
company to the point it has," he said. "I'm not happy about
selling the stock for a third of the entry price and being
forced to personally go backward."

In the past month shares in Isis have dropped more than 40
per cent, slumping last week to an all-time low of 38.5c.
Yesterday they closed down 1.5c at 39.5c, well off a high
in March of $2.65. However, Mr Radly can expect more losses
with Radly Corp advising the stock exchange it would likely
be "necessary for it to sell further shares [in Isis] in
similar quantities during the ensuing months in order to
meet financial obligations."

Mr Radly said the debt had arisen after April's global tech
stock rout when the financial institution he had borrowed
from to buy the shares in Isis re-rated the group and
decided to no longer lend against it.  Mr Radly, who
declined to reveal how much he had borrowed, said before
April the bank had allowed him to borrow up to 40 per cent
of the stock's value. (Sydney Morning Herald  04-Oct-2000)

LIBERTYONE: Looking at restructuring options
---------------------------------------------
Struggling Internet media company LibertyOne said today
that it is considering options for restructuring the
company.

"Options being considered include a recapitalisation of
LibertyOne by way of a placement of ordinary shares and the
sale of assets," the company said in a statement.

The move comes after LibertyOne last week terminated its
deal with uBid for online auction websites because as part
of a deal to reduce its cash burn rates.  The company has
also undertaken a massive rationalisation over the past
couple of months, which has included the sale of most of
its businesses and a $40 million writedown of assets.

LibertyOne managing director Marcelle Anderson said today
that the company was in discussions with Von Neumann
Companies - its 51 per cent joint venture partner - in
relation to the future structure of Monet Asia-Pacific.

"In its present circumstance, LibertyOne does not have
sufficient funds to provide the working capital needed to
achieve an appropriate long-term return for shareholders,''
Anderson said.  "Accordingly, an injection of capital into
LibertyOne or into the relevant businesses following a sale
is necessary."

She added that the company would make a decision regarding
the future of LibertyOne and its assets by October 16.
"The directors will have regard, among other things, to
value and return to shareholders and the time to implement
a transaction, particularly if shareholder approval is
required," Anderson said.

The company added that it would retain the services on KPMG
corporate finance to assist in reviewing all opportunities.
LibertyOne is currently in discussions with other parties
in relation to the potential sale of its interests in Zivo,
Satellite Music Australia and Tiger Exchange.  It has also
reached agreement to dispose of its interest in golfer Greg
Norman Interactive LLC to great White Shark Enterprises.
The disposal reduces expenditure by LibertyOne for the
balance of the year by more than $600,000. (Fairfax I.T.
04-Oct-2000)

PETSEC ENERGY LTD.: Selling Gulf of Mexico lease interests
----------------------------------------------------------
Petsec Energy Ltd confirms that its wholly owned subsidiary
Petsec Energy Inc. ("PEI"), pursuant to an agreement
reached with the unsecured creditors committee, has either
sold or signed purchase and sale agreements for the
majority of its leases.

PEI sold its 33% interest in Mustang Island 883 and 100%
interest in Mustang Island leases 748, 749, 795, 797, 940
and 941 to LLOG Offshore Exploration, Inc. for US$6.375
million. The sale was approved by the Bankruptcy Court
presiding over PEI's Chapter 11 proceedings and was
completed on September 25, 2000, with an effective date of
August 1, 2000.

PEI will present the purchase and sale agreements to the
Bankruptcy Court for approval as initial bids. PEI will
also request that the Bankruptcy Court enter an Order
approving certain bid procedures with respect to each of
these agreements so that other interested bidders may
submit higher and better offers to purchase these assets.

PEI expects to conduct a final auction of the assets in
early November 2000 if any competing bids are received. Net
proceeds from the sales of PEI's assets will be distributed
to PEI's creditors, Petsec (USA) Inc. (wholly owned by
Petsec Energy Ltd), as equity owner, and certain of PEI's
senior management team in the USA, in accordance with and
upon confirmation by the bankruptcy court of a Plan of
Reorganisation.

A purchase and sale agreement has been signed with Apache
Corporation for the sale of Petsec Energy Inc.'s 50%
working interest in Main Pass leases 5, 6, 7, 84, 90, 91,
93, 104 and 105, Grand Isle 45, Ship Shoal leases 192, 193
and 194, South Marsh Island 7, and West Cameron leases 237,
543, 544 and 653. The effective date of the sale is October
1, 2000.

The sale price is US$51.2 million. Apache is the operator
of the leases. Purchase and sale agreements have been
signed with ATP Oil and Gas in respect of the West Cameron
461 lease and South Marsh Island 189 and 190 leases. The
purchase prices are US$1,617,000 and US$3,129,000,
respectively, each with an effective date of October 1,
2000.

Purchase and sale agreements have been signed with Stone
Energy Corporation in respect of the South Pelto 22 lease
and Vermilion Block 258 leases. The purchase prices are
US$800,000 and US$1,700,000, respectively, each with an
effective date of June 1, 2000.

There are six exploration leases and other miscellaneous
assets that are not subject to the Apache, ATP or Stone
agreements, which PEI will market and sell subject to
Bankruptcy Court approval.  All inquiries concerning the
divestiture of PEI's assets should be directed to the
following professionals at Houlihan Lokey Howard & Zukin
Capital, the investment bankers managing the divestiture
process for PEI and its creditors: (Reuter  03-Oct-2000)


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

AEON CREDIT SERVICE: Secures $360M facility to cut costs
--------------------------------------------------------
Aeon Credit Service (Asia) has finalized a two-year
revolving credit facility of up to $360 million for general
working capital, which also will reduce the company's
funding costs.

Bonnie Lai, analyst at Core Pacific-Yamaichi, said Aeon's
funding costs remained at a high annualised rate of 8.9 per
cent in the first half of the year because of its exposure
to fixed-rate long-term debt. The company renewed a $360
million syndicated loan facility at an all-in-cost of 35
basis points. This was lower than its current loan
facilities.

Ms Lai said Aeon was also negotiating with Sanwa Bank about
reducing interest charges on its $200 million hire-purchase
structured loan. The company's interest expenses fell 17.3
per cent to $82.4 million in the first half.

"We expect Aeon's average funding costs to drop by 20 basis
points in the second half of the year," Ms Lai said.

She added that the company's card delinquency ratio was
falling on the back of an improving economy. It was
possible the company would further lower its provisions in
the second half of the year.

The company was pursuing a growth strategy and aimed to
have 730,000 cardholders by the end of the 2001 fiscal year
from the current 669,000. Advertising, staff costs and
administrative expenses were expected to increase in the
second half, she said.

"We expect Aeon to further improve its cost-to-income ratio
from 42.3 per cent to around 40 per cent," said Ms Lai.
(Hong Kong IMail  05-Oct-2000)

CITY e-SOLUTIONS: Investors lose big
------------------------------------
Several investors lost as much as 91 percent of their
investments when they bought stock of Hongkong-listed City
e-Solutions at prices near its closing level on Monday,
unaware apparently that the shares had started to trade
without entitlement to a cash windfall.

City, formerly known as CDL Hotels International, plunged
from 97 HK cents to close at 8.5 HK cents after the stock
went ""ex'', meaning owners of record yesterday were not
entitled to the company's cash payout of between $1.6
billion and $1.7 billion. That amount represents a return
of cash to shareholders following the company's proposed
restructuring plan to sell its 52.4 per cent stake in
Millennium & Copthorne to parent company City Developments
for HK$6.1 billion (S$1.37 billion).

As part of the deal, shareholders will get cash
entitlements of up to 94 HK cents per share,after adjusting
for a bonus issue. However, the last day the stock carried
this entitlement was Monday.  Despite this, investors
yesterday bought 2,000 City shares at 94 HK cents each and
another 4,000 shares at 90 HK cents a share.

There was also a married deal of 74,000 shares at 95 HK
cents each. In addition, another 88,000 shares were
transacted at between 14 HK cents and 29 HK cents. Without
the cash entitlement, these purchases were grossly over-
priced. The market realised the mispricing finally at
around noon and the stock soon fell to seven HK cents, a
level it stayed at until the close of market when it spiked
up to 8.5 HK cents.

When contacted by The Straits Times, City spokesman Gerry
de Silva attributed the sharp drop in the shares to the
"ex-date" in the capital reduction exercise of the company.

"The company's capital will be reduced from several hundred
million US dollars to just about US$75 million, and it came
into effect yesterday, de Silva said. "The value of the
shares will then have to reflect the reduced capital in
the company."  (Straits Times  04-Oct-2000)

SHOW8.COM: To slash workforce before merging
--------------------------------------------
Entertainment news and gossip Web site show8.com is
slashing its workforce before merging its units with four
unidentified companies.

Founder and talk-show host Eileen Lai confirmed the merger
but would not disclose the number of staff to be axed.
Show8 Cyber Media's four Web sites - show8.com, food8.com,
3by8.com and mango8.com - featuring gossip about movie and
TV personalities and information on dining and other
entertainment activities, are to be merged with four
different companies, including some listed firms. It hired
more than 200 people when it launched in September.

During two rounds of redundancies earlier this year, it
trimmed back to about 100 staff.  Co-founder and director
Frank Ng said the editorial department's 40 workers could
be affected by the merger, while most of technical staff
would be spared. Those being sacked will be told this week.
All sites will continue to operate under their existing
names, but Ms Lai would not reveal the new partners until
negotiations were finalised.

"After the merger, the content of the sites will become
richer because of the input from the various sources," she
added.

Meanwhile, the company was working out the compensation
package with its new partners and "everything will be
decided in the best interest of our staff", Ms Lai said.
It is the latest in a tide involving dotcoms shedding
staff. Mr Ng admitted expansion of dotcoms was difficult in
the present environment.

"In Hong Kong, there are just so few users of broadband,"
he said. "The advertisers are putting so much money into
advertising online but are not getting the results."

The Labour Department said it had received 13 inquiries
from show8.com employees regarding their rights under the
employment ordinance, but there had been no complaints.
It would monitor the situation and provide assistance to
the employees wherever necessary, an official said. (South
China Morning Post  04-Oct-2000)

WIRELESS INTERNETWORKS LTD.: Posts 1H net loss
----------------------------------------------
Telecommunications equipment maker Wireless InterNetworks
Ltd. recorded a HK$36 million net loss for the six-month
period ended June 30. That was down from HK$121.2 million
for the same period the year before.  Loss per share was
3.36 HK cents compared to 12.34 HK cents for the first
semester the previous year. Revenue for the company rose
5.7 percent to HK$177.6 million.  No interim dividend was
proposed.

Thanks to debt restructuring efforts, Wireless was able to
reduce its indebtedness (not including mortgages on real
properties) during the financial reporting period from
HK$465.1 million to HK$83.2 million as of July 21.


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

PT DBS SECURITIES: To cease brokerage ops in Indonesia
------------------------------------------------------
DBS Group Holdings Ltd., Southeast Asia's largest bank by
assets, said it's winding up its brokerage operations in
Indonesia amid a slump in the nation's stock market.

The withdrawal underscores growing concern about the future
of Indonesia's stock markets, roiled by a plunge in the
rupiah and stock prices in the wake of the Asian financial
crisis of 1997- 1998, and by a recent bombing at the
nation's main exchange.  PT DBS Securities Indonesia, 75
percent owned by Singapore's DBS Group, is considering
either selling its stock trading license or returning it to
the Jakarta Stock Exchange.

The company is discussing the matter with securities
regulator Capital Market Supervisory Agency, known as
Bapepam, according to Mieke Resmiati, a director of PT DBS
Securities Indonesia.  Shrinking trading volume and a poor
market performance were the main reasons for DBS
Securities' decision to withdraw from Indonesia, Resmiati
said. The country's benchmark stock index, the Jakarta
Composite Index, has plunged from a pre-crisis high of over
740 points to 427.7 points Tuesday.

Indonesia was hard hit by the 1997-1998 Asian financial
crisis, which saw the value of the rupiah plunge, led to a
recession that devastated the economy, and contributed to
ethnic, religious and secessionist violence across the
country.  On Sept. 13, a bomb exploded in the Jakarta Stock
Exchange building, killing more than a dozen people.
(Bloomberg 04-Oct-2000)

PT KIANI KERTAS: Gov't restructures debt
----------------------------------------
The Financial Sector Policy Committee has approved the
Indonesian Bank Restructuring Agency (IBRA)'s proposal to
restructure US$628.4 million in debts owed by PT Kiani
Kertas.

"Of the total, US$226.5 million in sustainable debts would
be restructured into a 10-year term loan, including a two-
year grace period, with annual interest of around 12%," the
committee said in a statement. "A further US$246.6 million
in unsustainable debt will be restructured into a mandatory
convertible bond."

The committee also approved the swap of another US$5.6
million debt with equity. Kiani is controlled by timber
baron Mohamad `Bob' Hasan, a longtime golfing pal of ex-
president Soeharto.  Hasan currently is on trial on
corruption charges, while Soeharto is accused of massive
corruption and power abuse during his 32 years in power.

Kiani also owes some US$120 million to foreign banks
including syndicated loans to Japan's Sumitomo Bank. IBRA
controls Rp600 trillion in assets and debts of the
country's troubled companies. All agreements between IBRA
and the debtors are subject to the committee's approval.
(Mandiri On Line  04-Oct-2000)


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

BANK OF JAPAN: To close pair of branches
----------------------------------------
The Bank of Japan (BOJ) is planning to close its Otaru
branch in Hokkaido and Kitakyushu branch in Fukuoka
Prefecture as part of the Japanese government's efforts to
streamline the central bank's operation, BOJ sources
report. The closures are planned for 2001 and are the first
since the central bank was founded in 1882. The action
would reduce the number of BOJ main branches in Japan to
31.

CHIYODA LIFE: Given ultimatum
-----------------------------
The future of Chiyoda Life, one of Japan's largest life
insurance companies, is looking increasingly troubled after
its lead bank said it would bail it out only if it found an
overseas partner.

Chiyoda needs a capital injection of between Y300bn
($2.76bn) and Y500bn to survive. Tokai Bank, a mid-sized
Japanese lender in which Chiyoda holds a 3.6 per cent
stake, this year agreed to provide the funds.

"Forming an alliance with a powerful foreign partner is a
must for us to consider financial assistance to Chiyoda,"
said Hideo Ogasawara, Tokai president on Wednesday.

The change has been attributed to Tokai's ongoing three-way
merger with fellow Japanese banks, Sanwa and Toyo Trust,
creating the country's fourth-largest bank. Tokai's
partners may be concerned about the size of bail-out,
particularly as Tokai has already invested about Y70bn in
Chiyoda, which had assets of Y3,500bn at the end of March.

Mr Ogasawara's demand comes as potential candidates are
backing away from investing in the ailing Japanese company.
Allianz, the German insurance group, made an approach this
year but distanced itself from the deal soon afterwards and
is not expected to return to the negotiating table.

Chiyoda said on Wednesday that it was still in talks with
"several" unnamed international insurance companies. Larger
groups such as AIG could be candidates. Axa of France is
thought unlikely to be be interested as it took over
Japanese insurer Nichidan last year for Y200bn.

Analysts said Allianz's withdrawal would make other foreign
investors wary of an alliance and that the size of
Chiyoda's financial problems were a concern.  The insurer's
solvency margin was 263 per cent in March, when the Nikkei
average was about 20,000. This compares with a solvency
ratio of 600 per cent to 1,000 per cent at most large life
assurance groups.  With the Nikkei down at 16,149,
Chiyoda's solvency ratio is expected to be about 200 per
cent. (Financial Times  04-Oct-2000)

HAZAMA CORP: S'holders sue for political donations
KUMAGAI GUMI: S'holders sue for political donations
---------------------------------------------------
Shareholders of two Japanese construction companies are
suing them for up to �120m ($1.1m) damages for making
"excessive" political donations at the same time as they
were effectively bankrupt.

Stockholders in Hazama and Kumagai Gumi plan to send a
request to the companies' auditors demanding they file
lawsuits against the companies for squandering scarce funds
on political contributions when they were so cash-strapped
that they could not pay dividends.  Shareholder suits used
to be rare in Japan because they were costly and difficult
to file and there was little tradition of shareholder
rights.

However, changes to the law in recent years have made the
process simpler and cheaper. Suits over political donations
are still rare, however, and the action against the
construction companies hints at shareholders taking an
increasingly active and vigilant stance on corporate
governance.

According to the shareholders, Hazama has donated as much
as �49m to political parties, including the ruling Liberal
Democratic party and the Democratic Party of Japan, since
the 1997 fiscal year, the same year it stopped paying
dividends to shareholders. Kumagai Gumi apparently also
donated as much as Y69m to various political parties in the
past three years, a group lawyer said.

The possibility of such a lawsuit comes at a delicate time
for the troubled construction industry. Both Hazama and
Kumagai Gumi are among ailing construction companies that
have been seeking controversial debt-waivers from creditor
banks in recent months.

Hazama's creditors agreed to a debt-forgiveness package
worth �105bn only last week, while Kumagai Gumi is still in
the process of negotiating with its banks for a �450bn
loan-waiver. (Financial Times  04-Oct-2000)


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

DAEWOO MOTOR: Creditors plan emergency funding steps
----------------------------------------------------
Creditors of Daewoo Motor are drawing up an emergency
funding plan to ensure that the insolvent South Korean
carmaker can continue operations, pending a possible
takeover offer by General Motors.

The Daewoo restructuring committee, representing creditors
owed about $16bn, is due to meet on Friday in Seoul to
agree a new funding schedule for the company, according to
Daewoo executives.  "The object of the exercise is to
ensure that the company keeps operating," said one
European-based official.

Daewoo's creditors are seeking a new bidder for the company
following Ford's abrupt decision last month to abandon a
$6.9bn non-binding bid for the company.  That has cleared
the way for a possible offer from GM and Fiat Auto, the US
and Italian automotive alliance partners. Last week, Rick
Wagoner, GM chief executive, said the group needed to re-
examine Daewoo's financial data before deciding whether to
make a bid.

According to Daewoo executives, Friday's creditors meeting
could, for the first time, endorse a potential break-up of
the company.  "The meeting is expected to agree a new
funding schedule until such time that a new shareholder is
found," said one official.

On Wednesday GM declined to expand on Mr Wagoner's comments
at last week's Paris international motor show. At the time,
the GM chief executive said: "It is clear that from the
Korean side they would like to move fast. We need to
understand what options are on their mind."

GM and Fiat could emerge as the sole bidders following
Ford's withdrawal and the decision by DaimlerChrysler and
Hyundai, the German-US and Korean alliance partners, not to
make an offer.  Nevertheless, DaimlerChrysler has hinted it
could be interested in some of Daewoo's operating assets if
there was a break-up.

Industry analysts said Daewoo was technically bankrupt, and
losing more money each day that the search for a new bidder
continued.  Many Daewoo workers, including 500 employees at
its European research and development centre in Britain,
have not been paid following a cash shortage last month.

The company is due to update its UK staff on Thursday on
the worsening situation. Officials hope Korea Development
Bank, the group's main creditor, will put together funding
to allow payments to be made. (Financial Times 04-Oct-2000)

DAEWOO TELECOM: To sell IT sector to CVC
----------------------------------------
South Korea's Daewoo Telecom will sell its information and
technology business to Citibank Venture Captial (CVC) for
about 330 billion won ($295.4 million), Daewoo's main
creditor, Hanvit Bank said on Wednesday.

A contract will be signed after creditors approve the deal
on Friday, an official at the Hanvit Bank told Reuters.
CVC is a consortium composed of Citibank , Carlyle Group of
the United States, and Prudential PLC of the United
Kingdom.

Daewoo and CVC have been discussing the sale price since
signing a memorandum of understanding for the deal in July,
the official said. If approved, CVC will set up a
subsidiary in Korea to take over Daewoo Telecom's assets
and debts, he said.  CVC has agreed to pay 295 billion won
up front and the rest by the end of 2001, he said.

"But the sales price can be flexible at around 330 billion
won according to Daewoo Telecom's sales status," he said.

Daewoo Telecom is a telecom equipment maker and unit of the
Daewoo Group 1/8DWGR.UL 3/8, whose 12 core affiliates were
placed under debt rescheduling workout programmes by
creditors last August.  Shares of Daewoo Telecom were up
255 won at 1,975 won at 0156 GMT on Wednesday.

Daewoo Telecom posted a first half loss of 138.9 billion
won on sales of 887.8 billion won versus an 8.2 billion won
profit in the on sales of 680.3 billion first half of 1999.
(Reuter  04-Oct-2000)

NATIONAL PENSION CORP: Huge losses on stock investments
-------------------------------------------------------
Amid concerns about the government's plan to mobilize
pension funds to boost the languid stock market, the
National Pension Corp. (NPC) disclosed yesterday that had
it suffered losses of 1.22 trillion won from investments in
stock during the first eight months of the year.

The NPC's report, submitted to a lawmaker of the National
Assembly's Health and Welfare Committee, provided
ammunition to critics of the government's plan. According
to the report, the NPC incurred the losses by investing in
Korea Telecom stocks. The corporation had apparently
acquired the KT stocks, amounting to 46.1-49.2 percent of
its original 3.16 trillion won worth of stock holdings,
during the three-month period between January to March 31
this year.

In acquiring the KT shares, the corporation violated the
regulation limiting its ownership of a single stock to less
than 10 percent of its total stockholdings.  Furthermore,
the NPC also violated its own regulations stipulating loss-
cut sales when the book value of its stockholdings drop
more than 25 percent.

Due to a sharp plunge in the KT stock price Jan. 14, the
NPC experienced a 26.54 percent drop in the book value of
its stockholdings. But instead of selling the stock at a
loss, the corporation purchased more KT shares in a futile
attempt to compensate for its losses.

As a result, between January and August, the NPC suffered a
54.68 percent loss on its investment in KT stocks. Overall,
the corporation recorded a valuation loss ratio of 38.5
percent on its investment in domestic stocks, higher than
the 37.7 percent fall of the composite stock price index
during the same period.

The NPC also violated rules forbidding it from dealing with
financial institutions with a net operating capital ratio
of under 150 percent when it invested in CJ, Samsung and
Hyundai Investment Trust and Securities.  The Board of
Audit and Inspection issued official warnings to the
corporation for its failure to observe regulations. (Korea
Herald  04-Oct-2000)


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

KELANAMAS INDUSTRIES: Transfers land in debt settlement
-------------------------------------------------------
Kelanamas Industries Bhd has disposed of a piece of land
together with other property, collectively valued at RM30
million, to Pengurusan Danaharta Nasional Bhd as part of a
debt settlement arrangement. A 10-story office building in
Kuala Lumpur was charged to Danaharta, the company
confirmed in a statement. The transfer will result in an
exceptional loss of RM5.6mil for the company, to be
reflected in its financial year ending April 30, 2001.

PERUSAHAN SADUR TIMAH: Debt-ridden firm in pursuit of money
-----------------------------------------------------------
Perusahaan Sadur Timah Malaysia Bhd (Perstima), the
country's sole tin-plate manufacturer, will continue to
pursue all avenues to recover the money that was lost in
alleged irregularities.

A substantial amount may have landed in an Australian bank
with others in personal accounts. Perstima managing
director Hiroshi Kume says the company had accumulated
debts totalling about RM600 million as at the end of 1999,
a sizeable portion due to irregularities, the amount of
which is unknown.  He believes that more than RM100 million
of the debts arose from trading in shares by a subsidiary.

"We have initiated legal actions, but due to the absence of
material witnesses, we cannot proceed. But, we have not
given up hope of recovering some of the money," Kume says
in an interview with the TheEdge.Com.my.

Kume suspects that some of the money missing could have
ended up in personal accounts, including a significant sum
in an Australian bank. However, he declines to elaborate
further. Of the RM600 million debt, he says it included
RM100 million each to Sabah Development Bank Bhd and
Perwira Affin Bank Bhd, RM50 million each to three
securities firms, and to four secured bank creditors.

Perstima, which is involved principally in the manufacture
and sale of electrolytic tin plate for use in the canning
industry, was requoted on the Kuala Lumpur Stock Exchange
on Sept 26 after being revived by Pengurusan Danaharta
Nasional Bhd's special administrators.

In February last year, the company took actions against its
former managing director Datuk Soh Chee Wen and several
former directors as well as a law firm for damages for
breach of directors' fiduciary duties. The alleged breach
of fiduciary duties was in relation to the mismanagement of
a loan transaction amounting to RM100 million from Sabah
Development Bank Bhd.

Except for Soh, Perstima had served the writ of summons on
the former directors and the law firm. Soh, who is wanted
by the Securities Commission, is believed to be out of the
country. Perstima came under probe of the authorities two
years ago concerning the irregularities in its accounts.
In the 1997 annual report, auditors KPMG Desa Megat & Co
qualified Perstima's accounts and were unable to ascertain
the existence and recoverability of monies due to the group
from its existing and former subsidiaries. (The Edge  03-
Oct-2000)

TECHNOLOGY RESOURCES INDUS.: Shares fall on rumors
--------------------------------------------------
Technology Resources Industries Bhd's (TRI) shares slipped
9.3 per cent at the start of the week's trading despite the
company's announcement that rescheduling of its US$375
biillion (US$1 = RM3.80) eurobonds debt is on track.

TRI shares slipped 27 sen to close at RM2.64 with over 3
million shares changing hands, on speculation that
bondholders could reject the restructuring deal. Some
analysts are puzzled over the reaction towards the bond
restructuring given the fact that "the market has been
aware of the possible delay in restructuring".

While some say investors are concerned that bondholders
could reject TRI's restructuring proposal, others believe
that an extension of the bond tenure is inevitable,
concluding that it would definitely go through. According
to TRI, the nation's largest operator of cellular phones,
90 percent of bondholders have indicated support of the
restructuring deal.

Previous news reports showed that 45 per cent of TRI's
bondholders are South Koreans.  Restructuring of the bonds
which include a two-year extension of the bond tenure,
would allow TRI to recapitalise in order to resolve its
debt woes.

According to one analyst, the restructuring proposal would
possibly include repayments in instalments, beginning next
year.  TRI had defaulted on the put option of the two
tranches of eurobonds when bondholders exercised the option
late last year, raising the total amount due to US$535
million.

Extension of the bond tenure may not address the issue of
repayment methods, say analysts, but it will definitely
give TRI a breathing space to decide on possible cash
raising methods.  The eurobond issue aside, there are other
problems plaguing the share.

According to one analyst, "the counter is down on
speculation that Deutsche Telekom, TRI's strategic partner,
plans to pull out of its partnership with the intention of
forming an alliance with another local telco."

This reaction is compounded by the possibility of a cash
call via a rights issue that shareholders would not take
up, added the observer. Based on the heavy debt position of
the company, the realisation of a cash call may not be too
far fetched.

"The company has debts amounting to RM2 billion which have
to be repaid between 2001 and 2004, cash which the company
does not seem able to generate," he said.

Its only option, therefore, would be to roll over the debt
of go for a cash call.  Valuations-wise, TRI remains a very
cheap buy. Its enterprise value per subscriber stands at
US$1000 while its closest competitor, DiGi.com is trading
at US$1700, said one analyst.

"TRI is a strong buy at current valuations," she said.
According to her, the regional average for telcos is
US$1600. Another analyst says TRI's cashflow remains very
strong although earnings-wise it could continue to see a
marginal loss this year.  Its operating cashflow for the
financial year ended 2000 is estimated to be in the region
of RM900 million, most of which would probably be used to
repay its Celcom debt.

The earnings margin before interest, tax, depreciation and
amortisation for TRI is estimated to be above 40 per cent
for the coming financial year end, said the analyst. This
is substantially higher than estimated for DiGi.com which
is expected to be 33 per cent for 2000 while Time.com's
potential earnings margin is estimated to be 12 per cent.

According to one analyst, TRI could be offering an
instalment plan to bondholders with repayments starting
next year but most concur that it is rather late in the day
to react to delays in the eurobond debt restructuring.
(Business Times  03-Oct-2000)

TIME ENGINEERING: Share sale may be put off
UNITED ENGINEERS MALAYSIA: Share sale may be put off
----------------------------------------------------
Time Engineering and United Engineers Malaysia (UEM), among
Malaysia's biggest companies, may have to postpone yet
again planned sales of shares in their units as Kuala
Lumpur's stock market slides.

The companies, which were looking to raise RM7 billion
(S$3.2 billion) through the initial sale of shares in their
units this year with which to reduce debt, may find few
buyers of shares in their planned offerings, after the key
stock index yesterday sank below the 700 level for the
first time since Oct 5 last year.

"They can't have an IPO in this kind of market," said Mr KC
Low, vice-president for investment at BHLB Asset
Management. "This is almost like inviting under-
subscription."

A lot rides on the success of the share sales, which the
companies hope will help raise funds to repay more than
RM10 billion in debt, restructure their operations in order
to boost profits. The slump in the market will also stymie
efforts by scores of other Malaysian companies such as
Naluri and the Lion Group that are looking to restructure
as much as RM14.6 billion of debt this year with the help
of the country's Corporate Debt Restructuring Committee.

A cornerstone of most of these companies' proposals to
restructure debt is the sale of assets such as stakes in
units.  Time and UEM have already postponed plans to sell
shares in their units once. Last month, Time, Malaysia's
most indebted company, said it could not meet its target to
raise RM1.8 billion this month in the initial sale of
shares in its Time dotCom unit.

The telecommunications company, which wants to raise money
to help repay RM5 billion in debt, set next month as the
new target for the share sale. For its part, UEM, the
country's biggest toll road operator, is seeking to
raise as much as RM5 billion by January. Its initial public
offer (IPO) was slated originally for December. Investors
said they did not think the new deadlines could be met.

"It seems quite ambitious, given the market conditions,"
said Mr Tan Poh Hong, who helps manage US$14 billion
(S$24.5 billion) at American Express Asset Management in
Singapore.  UEM shares have tumbled 20 per cent in just the
past nine days, while Time has fallen 15 per cent.

The companies could not be reached immediately for comment
on whether they planned to postpone the sales again.
Investor concern that the IPOs will get a cool reception
have been deepened by the poor showing of some recent share
sales.

"There's greater competition for the public's money now
that stocks" have declined, said Mr Low of BHLB. "What was
out of reach for some has now become cheaper," so it is
less attractive to go for IPO stocks. "The underwriters are
the ones who would be nervous. They are the ones who
have to take on bigger risks, not the public."

The drop is also hurting plans by companies to sell assets.
Naluri, the controlling shareholder of Malaysian Airline
System, is selling some of its assets, including part of
its shares in the national carrier, as part of a plan to
reorganise debt by mid-2002.  Lion Group, owner of
Malaysia's biggest publicly traded steel maker, is also
working to sell assets to repay RM10.2 billion of debt.
(Bloomberg, Straits Times  04-Oct-2000)

TRANS CAPITAL HOLDINGS BHD: OK'd for restructure
------------------------------------------------
Trans Capital Holdings Bhd has received approval from the
SC to implement the proposed debt restructuring and rights
issue exercise announced August last year. Among proposals
approved are the issuance of five-year unlisted redeemable
convertible cumulative preference shares to its lender
banks/financial institutions as well as a 3-for-2 rights
issue exercise of up to 79.29 million shares at RM1 each.


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

EAGLE SERVICES ASIA: Repair license suspended
---------------------------------------------
Eagle Services Asia (ESA), an associate company of SIA
Engineering Company (SIAEC), had its license to repair and
overhaul local aircraft engines suspended last week.


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

NTS STEEL GROUP: Files rehab petition, appoints planner
-------------------------------------------------------
NTS Steel Group Public Company Limited, having filed a
rehabilitation petition with the Central Bankruptcy Court
("the Court") on September 2, 2000 and the Court fixing
October 2 as a first hearing date, the Court Oct. 2 ordered
the company be rehabilitated and appointed 331 Planner
Company Limited as the planner.

PROPERTY PERFECT PLC: Strikes debt rehab pact
---------------------------------------------
Property Perfect Public Company Limited directors
unanimously approved the company's entry into a debt
restructuring agreement with Asia Recovery II Fund under
which it would in principle transfer mortgaged collateral
land located at Tambol Suan Koo Wieng, Amphur Bang Kruai,
Nonthaburi Province, in settlement of the debts with Asia
Recovery II.

Property Perfect unanimously approved and authorized Mr.
Chainid Ngow-Sirimanee, Managing Director, to negotiate in
details with Asia Recovery II.

Property Perfect's directors also have approved the filing
of a petition to the Central Bankruptcy Court for the
rehabilitating the businesses of the company after which
the company could negotiate the restructuring of its debts
with the majority of its creditors. The firm will propose
appointment of Property Perfect Planner Co., Ltd. as
planner of the Company and appointed Mr. Chainid Ngow-
Sirimanee as leader of the Working Group in the preparation
of submission of the petition for rehabilitation of the
businesses of the Company.

The company also intends to sell 40,000 ordinary shares in
Granito Co., Ltd. with a par value of 100 baht per share to
Mr. Chartchai Phanichcheewa for 10 baht per share. Total
sales price will be 400,000 baht, the company booking a
10.6 million baht loss for the transaction.

THAI LUBE BASE: Cabinet endorses debt plan
------------------------------------------
The Thai cabinet yesterday endorsed a debt-restructuring
plan for Thai Lube Base Co, an affiliate of the state-run
refinery Thai Oil Plc.

Under the plan, Thai Lube Base proposes to slash its debts
to US$66 million from $201.6 million. Creditors would
convert $68.6 million in debt to 20% equity. The firm then
would raise capital by $67 million via its shareholders.

In the process, Thaioil would be unable to inject
sufficient new capital to maintain its 38% holding, its
stake shrinking to 10%. The Petroleum Authority of Thailand
would increase its holding to 38% from 30%, however; Nippon
Mitsubishi Oil would continue to hold 22%, BP Oil 5% and
other shareholders 5%.


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

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