/raid1/www/Hosts/bankrupt/TCRAP_Public/001220.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

           Wednesday, December 20, 2000, Vol. 3, No. 247

                                       Headlines


* A U S T R A L I A *

MYPRICE.COM: Another dotcom dealer crashes
NEXT MEDIA: First-half loss widens by 22% to HK$43.4M
SAUSAGE SOFTWARE: Share price heading in wrong direction


* C H I N A  &  H O N G  K O N G *

CAN DO HOLDINGS LTD.: Posts $62.54M 1H net loss
CHEVALIER CONSTRUCTION: Posts HK$19.76M 1H net loss
CIG-WH INT'L (HLDGS.): Posts HK$19.17M 1H net loss
CIL HOLDINGS: To retire HK$113M in debt with share issue
CULTURECOM HOLDINGS: Posts HK$13.12M 1H loss
INNOVATIVE INT'L.: Posts HK$48.19M 1H net loss
iREGENT GROUP: Shares plunge on loss revelation
WAH FU INT'L: Posts 1H loss of $5.11M
401.COM: Posts $36.51M 1H net loss


* I N D O N E S I A *

PT TIRTAMAS COMEXINDO: IBRA bankruptcy petition rejected


* J A P A N *

DAIEI INC.: Names more stores for closure
KANSAI KOGIN: Credit union bank gives fresh funds
MITSUBISHI MOTORS: May close factory in Nagoya
TOKYO SHOGIN: Credit union bank gives fresh funds


* K O R E A *

CHEJU BANK: FSC declares insolvent; to scrap shares
HANVIT BANK: FSC declares insolvent; to scrap shares
KOREA AEROSPACE INDUSTRIES: Lenders in debt-to-equity swap
KOREA LIFE INSUR.: Follows first-half trend of losses
KOREA TELECOM: Fears of job losses spark strike
KWANGJU BANK: FSC declares insolvent; to scrap shares
KYOBO LIFE INSUR.: Follows first-half trend of losses
KYONGNAM BANK: FSC declares insolvent; to scrap shares
PEACE BANK: FSC declares insolvent; to scrap shares
SEOUL BANK: FSC declares insolvent; to scrap shares


* M A L A Y S I A *

ANTAH HOLDINGS: To close 20 of UK-based affiliate stores
OMEGA HOLDINGS: Posts annual loss, but nears rehab end
PERWAJA STEEL: Gov't mulls sale of ailing steel firm
UNITED CHEMICAL INDUSTRIES: SC rejects debt-to-equity plan


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

NATIONAL STEEL CO.: SEC to allow lease of its mills
PHILIPPINE TEL.AND TEL.: Creditors to own 60% after swap


* T H A I L A N D *

NATURAL PARK: Applies for business rehabilitation
SUPALAI PLC: Debt Repayment to SCBPF under Debt
THAI IRYO GARMENT CO.: Pay workers or lose assets


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

MYPRICE.COM: Another dotcom dealer crashes
------------------------------------------
MyPrice.com.au has collapsed after a bitter falling out
with its major backer, US-based priceline.com.

The start-up, which attracted investors such as Telstra and
US financier George Soros, will shut its doors before it
burns up all of its $30 million cash pile and will return
what's left to shareholders. The company was established in
March and attracted plenty of executive talent, including
Telstra veteran Peter Shore who was made chief executive
and who had once been touted as the next chief of Telstra.

Frank Blount, who headed Telstra through most of the 1990s
and was succeeded by Ziggy Switkowski, was chairman of
Myprice.com.au. Telstra's investment was believed to be
around $10 million but sources said it had valued
Myprice.com.au's business model at more than $250 million,
as recently as October.

But the fortunes of Sydney-based Myprice.com.au were tied
to those of Priceline.com. Priceline.com shares have
crashed from $US165 last year to just $US1.81 on
Friday. Myprice.com.au decided to shut down after
Priceline.com attempted to increase leasing charges for the
use of its technical platform, The Australian has learnt.

The US company was charging myprice.com.au about $US50,000
($91,000) a month but recently tried to increase the
charges to $US650,000 a month. Sources said priceline.com
had underestimated the cost of its technical platform and
the difficulty in customising the service in Australia.
On top of this, the number of services offered by
Priceline.com was shrinking and demand was evaporating, the
sources said.

Priceline.com joint-venture agreements with other companies
were on the backburner, and it had recently postponed plans
to roll out its "name your price" service in Japan. Sources
said Myprice.com.au directors, including Mr Blount and
Melbourne lawyer Mark Leibler, had seen the "writing on the
wall" and with other directors took a decision at the
weekend to shut the business. Mr Shore declined to comment
when asked about the lease charge increases but hinted they
were behind the company's decision to shut up shop.

"Priceline has recently decided to scale back its business
activities in the US," Mr Shore said. "It's focusing on its
core travel business and as a consequence (is) not able to
support the company with technology (at) cost as originally
forecast."

Priceline.com offers a web-based auction site platform
where customers name the price they want to pay for a
service and Priceline.com's web-based technology then
searches the internet to try to match the bid with a
seller. Priceline had expected it to be big in the
financial services and telecommunications markets.

But, in early December, it announced it would shelve those
plans and focus primarily on trying to match travellers
with cheap air fares. Analysts said the Australian market
was not big enough to support an auction site for air
tickets and Myprice.com.au had been focusing on a platform
of selling cheap telephone time to overseas destinations.

Mr Shore said all suppliers would be paid out in full and
the company's 30 staff were being offered industry-standard
redundancy packages. Heis believed to have negotiated a big
termination clause in his contract but refused to discuss
that yesterday. He said he would look for a new job early
in the New Year. Myprice.com.au's backers had expected to
list the company on the stock exchange in 2002. (The
Australian 19-Dec-2000)

NEXT MEDIA: First-half loss widens by 22% to HK$43.4M
-----------------------------------------------------
Next Media, the listed flagship of media tycoon Jimmy Lai
Chee-ying, saw its net losses widen by 22 percent for the
interim period, due to substantial losses sustained by its
Internet businesses. Internet and magazine publisher Next
Media posted a net loss of HK$43.43 million for the six
months to September 30, despite a 177 percent surge in
turnover during the period.

The company reported a net loss of HK$35.59 million on
HK$69.02 million turnover in the previous corresponding
period. During the period, Next Media booked a HK$191.22
million turnover, mainly contributed by its magazine
printing and publishing business generated by the Next
International and Easy Finder operations, which the company
acquired from Mr Lai last October.

However, the huge loss of HK$73.10 million sustained by its
Internet businesses has eaten into the profits. In the
period, Next Media's Internet operations generated only
HK$3.8 million in revenue, representing only 2.1 percent of
the group's turnover. About 56.4 percent of Next Media's
revenue came from its printing business.

The remaining 41.5 percent was contributed by the magazine
publishing business. Losses per share diluted to 1.5 HK
cents from 13.1 HK cents in the previous corresponding
period due to the issue of new shares. Next Media also made
aggressive moves to trim down losses after the new economy
bubble burst in the first half of the year.

The company laid off about 100 atnext.com staff last month
after shutting down 11 Web sites. Next Media's news,
finance, entertainment, soccer and lifestyle Web sites
were closed. In July, 98 jobs were lost from appledaily.com
and nextmedia.com, which were then renamed atnext.com.

Next Media paid HK$500 million to acquire Apple Daily
Online in August, which was satisfied by the issue of 362
million shares at HK$1.38 each. Shares in Next Media have
plunged more than 90 per cent from their peak of HK$5.40
each in March. The shares eased 1.3 per cent or 0.5 HK cent
yesterday to close at 38 HK cents.

Meanwhile, cold storage and warehouse operator Seapower
Resources International announced its net losses for the
six months to Sept. 30 increased fivefold to HK$51.86
million. Turnover plunged 35 percent to HK$113.80 million
during the period. Losses per share for Seapower Resources
widened to 3.35 HK cents from 0.72 HK cent a year ago.
(South China Morning Post 19-Dec-2000)

SAUSAGE SOFTWARE: Share price heading in wrong direction
--------------------------------------------------------
In May last year, Intel paid $6.55 million for a five per
cent stake in up-and-coming Australian dotcom Sausage
Software. After hitting a high of $39 million earlier this
year, yesterday that same stake was worth just $3.7
million, reflecting the plummeting value of the chip
giant's investment portfolio.

A company profit warning noted revenue for the fourth
quarter would be flat, at $US8.7 billion ($16.1 billion),
compared with its previous estimate of four to eight per
cent growth in the third quarter. Intel blamed a "slowing
worldwide economy" which had resulted in large cancel-
lations of orders, noting it had cut expenses in line with
the decrease in revenue.

That warning prompted earnings downgrades from analysts at
ABN Amro and Chase H&Q. A single paragraph in the middle of
the document underlined the impact of May's dotcom stocks
rout on Intel's investment activity.

"Lower than expected realised gains on equity investments"
had cut Intel's forecasts of interest and other income for
the quarter from $US950 million to $US675 million. Locally,
the Sausage stake -- now diluted to just 1.75 per cent of
the company -- has had a disappointing ride, rising to a
high of $7.85 a share, or $39 million, in March this year
before dropping on the back of the tech wreck and Solution
6's failed bid for the company.

But disappointing investment choices have not driven a
change in Intel's diversification strategy. Lower chip
prices -- Intel recently discounted its newly-released
Pentium 4 processor -- are forcing a continuation of the
policy. Intel's manager for strategic investments in
Australia and New Zealand, Carl Rodriguez, said the company
was looking for more than just a cash return on its
investments.

He said the Sausage stake had resulted in a closer working
relationship between the two companies.
Sausage Software business solutions director Tom Stianos
said Intel and Sausage were working on a number of
broadband initiatives that would drive demand for faster
processors.

"If you want a global investment portfolio, Sausage is a
required buy," he said. "You can't invest in Australia and
not invest in Sausage."

Mr Rodriguez would not be drawn on the specifics of the
Australian investment or on the company's revised fourth
quarter forecast, but other executives said the company's
broader plan to expand its business beyond microprocessors
would continue. Intel online services president Michael
Aymar said it was crucial the company looked at other
sources of income.

"It's very important to keep growing," he said. "If we get
80 percent of the business growing at 10 percent a year, we
need to augment that so that we get corporate growth of 20
percent a year. If we want to maintain corporate growth,
then we will have to continue introducing new businesses."
(The Australian  19-Dec-2000)


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

CAN DO HOLDINGS LTD.: Posts $62.54M 1H net loss
-----------------------------------------------
Can Do Holdings Limited posted a net loss of $62.54 million
for the six months ended Sept. 30. Turnover was $11.3
million and loss per share was 28.90 cents. No interim
dividend was declared.

CHEVALIER CONSTRUCTION: Posts HK$19.76M 1H net loss
---------------------------------------------------
Chevalier Construction Holdings Ltd., a construction and
civil engineering company, recorded a net loss of HK$19.76
million for the six-month period ended Sept. 30 - a
turnaround from a net profit of HK$2.27 million for the
same period a year earlier. Loss per share was 8.63 HK
cents compared with earnings per share of 0.99 HK cent for
the same period a year before. Revenue dropped 49.5 percent
to HK$569.71 million. No interim dividend was proposed.

CIG-WH INT'L (HLDGS.): Posts HK$19.17M 1H net loss
--------------------------------------------------
CIG-WH International (Holdings) Ltd., a superstructure
construction and foundation piling company, recorded a net
loss of HK$19.17 million for the six months ended Septe.
30, quite a turnaround from the net profit of HK$10.98
million it posted for the samer period a year ago. Loss per
share was 6.67 HK cents compared with earnings per share of
3.82 HK cents the previous period. Revenue fell 6.2 percent
to HK$286.6 million. No interim dividend will be declared.

CIL HOLDINGS: To retire HK$113M in debt with share issue
--------------------------------------------------------
CIL Holdings (0479), a building and construction services
provider, plans to raise a net HK$28.6 million by placing a
maximum of three billion new shares at a price of 1 HK cent
each. The company intends to use HK$15 million of the
proceeds to repay debt, with the remainder earmarked for
working capital.

In the meantime, the company plans to issue about 11.3
billion new shares at 1 HK cent each to number of secured
and unsecured creditors as full and final settlement of
debts of about HK$113 million. Additionally, the company
plans to issue 25 million new shares to Wong Chi-keung and
HK Weaver Group Ltd. to settle a HK$25 million debt.

CULTURECOM HOLDINGS: Posts HK$13.12M 1H loss
--------------------------------------------
Culturecom Holdings Ltd., publisher of pocket-size comic
books, recorded a net loss of HK$13.12 million for the six-
month period ended Sept. 30. That was down from a loss of
HK$24.96 million for the same period a year earlier. Loss
per share was 0.49 HK cent this semester, compared with
1.41 HK cents for the previous one. Revenue fell 20 percent
to HK$79.6 million. No interim dividend will be
distributed.

INNOVATIVE INT'L.: Posts HK$48.19M 1H net loss
----------------------------------------------
Innovative International (Holdings) Ltd., designer and
manufacturer of car accessories, recorded a net loss of
HK$48.19 million for the six-month period ended Sept. 30.
That was down 300 percent from a net loss of HK$146.71
million for the same period a year earlier. Loss per share
this first semester was 8.32 H.K. cents, compared with 25.3
H.K. cents for the samer period last year. Revenue fell
22.4 percent to HK$93.21 million. No interim dividend will
be distributed.

iREGENT GROUP: Shares plunge on loss revelation
-----------------------------------------------
Shares in investment company iRegent Group slumped 18.18
percent on the back of poor interim results that showed the
company plunging into a loss. iRegent shares closed at 36
HK cents, having fallen 55.1 percent in the last month.

For the six months to September 30, the company reported a
loss of US$23.96 million attributable to shareholders,
compared with a profit of US$39.23 million in the same
period last year. Chairman David Paterson said the loss was
due to activities in South Korea through associate company
KoreaOnline, which recorded a post-tax loss of US$24.8
million.

KoreaOnline's loss was partly due to the acquisition of a
majority stake in Regent Insurance. IRegent also incurred
costs in developing an e-commerce platform for operations
in Korea. Mr Paterson said the interim profit and loss
figures for last year and this year were not comparable.

"These figures are not strictly comparable as the nature of
the group has changed in the intervening period," he said.
IRegent divested its eastern European operations, bought
British Internet company Interman Holdings and made a
number of acquisitions through KoreaOnline in an attempt to
set up an integrated financial services company.

Brokers said iRegent's shares fell yesterday because of the
poor interim results and the ongoing investigation by
Korean prosecutors into alleged share-price manipulation of
associated brokerage Regent Securities.

"The result is turning from a profit to a loss and the
results still do not reflect the crisis in Korea," said
Kenny Tang Sing-hing, associate director at Tung Tai
Securities.

Earlier this month Korean prosecutors said they had issued
a summons for iRegent director Jim Mellon to go to Seoul to
answer questions. Two Korean nationals are also being
investigated by prosecutors. Mr Mellon, who denies any
involvement with the alleged share-price manipulation,
temporarily stepped down as chairman to help distance the
company from the investigations in Seoul.

Mr Tang expected iRegent's stock to remain under pressure
in the coming days, although a technical rebound was
possible. "There may be a technical rebound but no
turnaround," he said. (South China Morning Post 19-Dec-
2000)

WAH FU INT'L: Posts 1H loss of $5.11M
-------------------------------------
Wah Fu International recorded a net loss of $5.11 million
for the six months ended Sept. 30. Turnover was $19.71
million and loss per share was 0.334 cent. No interim
dividend was declared.

401.COM: Posts $36.51M 1H net loss
----------------------------------
401.com Ltd posted a net loss of $36.54 million for the six
months ended Sept. 30. Turnover was $46.74 million and loss
per share was 0.37 cent. No interim dividend was declared.


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

PT TIRTAMAS COMEXINDO: IBRA bankruptcy petition rejected
--------------------------------------------------------
The Jakarta Commercial Court rejected an Indonesian Bank
Restructuring Agency bankruptcy petition against PT
Tirtamas Comexindo, according to Judge Mahdi Soroindah
Nasution. The court also canceled Monday's scheduled
creditor vote on a debt payment suspension request by
Tirtamas, reiterating a previous court ruling that
IBRA cannot be considered a Tirtamas creditor. Tirtamas
Comexindo has total debt of around 1.556 trillion rupiah,
of which IBRA claimed to be owed about 1 trillion rupiah.


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

DAIEI INC.: Names more stores for closure
-----------------------------------------
Ailing supermarket chain operator Daiei Inc. plans to shut
down stores in Chiba Prefecture's Narita and Kisarazu and
four other outlets by the end of February as part of its
rehabilitation program announced last month that calls for
closure of a total of 32 shops.

The closure of the stores, which will begin on Jan. 31,
will result in losses of some 9 billion yen. The loss was
included in earnings projections for the business year
ending in February, Daiei confirmed. The firm has so far
named 19 of the 32 stores to be closed. The remainder will
be announced early next year. Daiei Group has interest-
bearing debts totaling nearly 2 trillion yen.

Daiei will convene an extraordinary meeting of shareholders
Jan. 30 to seek their endorsement for a plan to shuffle top
management. Six board members -- including former Chairman
Isao Nakauchi and former President Tadasu Toba -- will
resign, with the firm then proposing to appoint adviser
Jiro Amagai chairman and Kunio Takagi president.

While Takagi will be responsible for managing Daiei, Amagai
will lead the retail giant's external relations on the
strength of his experience as a Ministry of International
Trade and Industry bureaucrat. Nakauchi will assume the
honorary title of "founder," Daiei said, adding that he
will take his retirement package after management turns the
company around.

The changes also include the appointment to vice chairman
of Takashi Hirayama, a former Daiei executive and current
president of Niko Niko Do Co., a retail chain operator
based in Kumamoto. Hirayama will return to Daiei under a
tieup with Niko Niko Do agreed upon earlier in the day.
(Japan Times 18-Dec-2000)

KANSAI KOGIN: Credit union bank gives fresh funds
TOKYO SHOGIN: Credit union bank gives fresh funds
-------------------------------------------------
The umbrella body for credit unions on Monday loaned an
unspecified sum to Kansai Kogin and Tokyo Shogin, two
failed credit unions which serve the Korean community in
Japan.

Shinkumi Federation Bank, a private-sector body which acts
as a kind of central bank for Japan's 320 credit unions,
made the loans so that the two institutions could repay
depositors, it said. A Shinkumi Federation Bank official
said, "Deposit withdrawals from the two credit unions are
under way at a mild pace, so we can deal with it on the
basis of our own reserves."

The Bank of Japan (BOJ) has stopped short of extending
unsecured emergency loans to Kansai Kogin, the Osaka-based
credit union, but pledged Saturday to do so if the need
arises, the official said.  Kim Song Jung, the president of
Tokyo Shogin, has tendered his resignation to the financial
administrators who were sent in by the government's
Financial Reconstruction Commission (FRC) after the FRC
declared the two credit unions insolvent on Saturday, Tokyo
Shogin officials said.

The administrators plan to accept Kim's resignation,
government sources said. The administrators plan to
commission other Tokyo Shogin executives to manage
the credit union until its operations are handed over to
another financial institution, the sources said.

The two credit unions are keeping up their financial
operations under the supervision of the administrators.
The BOJ on Saturday expressed willingness to extend a
special bridge loan to Kansai Kogin to enable it to
reimburse depositors' funds on demand. Kansai Kogin
reportedly had some 1.09 trillion yen in deposits as of
March 30, 2000, while Tokyo Shogin had 250 billion yen
worth.  (Kyodo News Service  18-Dec-2000)

MITSUBISHI MOTORS: May close factory in Nagoya
----------------------------------------------
Mitsubish Motors may close a factory in Nagoya to improve
profitability. The plant has an annual capacity of 228,000
units, and if closed by March 2002 as is being considered,
the production and workers will be transferred to two main
plants in Japan. A decision is to be made as part of a mid-
term plan to be unveiled by the end of March, 2001, after
talks with major shareholder Diamler Chrysler.


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

CHEJU BANK: FSC declares insolvent; to scrap shares
HANVIT BANK: FSC declares insolvent; to scrap shares
KWANGJU BANK: FSC declares insolvent; to scrap shares
KYONGNAM BANK: FSC declares insolvent; to scrap shares
PEACE BANK: FSC declares insolvent; to scrap shares
SEOUL BANK: FSC declares insolvent; to scrap shares
------------------------------------------------------
After declaring them insolvent the Financial Supervisory
Commission (FSC) has decided to scrap all shares in six
nonviable banks prior to the injection of fresh public
funds. The move against the six banks - Hanvit, Seoul,
Peace, Kwangju, Cheju and Kyongnam - is expected to give
new momentum to the government's push for changing the
nation's troubled banking industry.

However, the government is under fire for its loose
oversight of bailed-out banks because 8.3 trillion won,
which has been put into Hanvit, Seoul and Peace so far,
will go down the drain. An FSC official said that the
commission has issued the order for complete capital
decrease to the banks, as a recent due-diligence audit
found that their liabilities exceed their assets.

The official, however, refused to elaborate, citing that
the announcement of the due-diligence results may hurt the
credibility of the banks. The government will give small
investors in the banks the right to sell their share
holdings to the banks at prices much lower than the going
price, in order to enable them to recover part of their
invested money.

In the run-up to the injection of taxpayer money, the FSC
also declared the banks insolvent, in accordance with a
related law. The FSC has requested that the Korea Deposit
Guarantee Corp. inject about 7.1 trillion won in public
funds into these banks before placing them under a
government-run financial holding company, to be led by
Hanvit Bank.

Injecting public funds will raise the capital adequacy
ratios of the banks, a key barometer of financial health,
to around 10 percent by early next year. An official at the
Ministry of Finance and Economy said that the government
plans to inject up to 70 percent of the public funds
requested around the end of this month in a bid to keep the
financial markets stable.

"The government plans to put taxpayer money into the banks
as early as possible to gain market confidence," he said.
"About 60 percent to 70 percent of the requested funds will
be pumped at the end of December."

The remainder will be injected during the first half of
next year, depending on the progress of their self-rescue
plans, the official said. The state deposit guarantee
agency will decide how much public cash to put into each
bank after conducting due-diligence audits into the banks,
he added.

The FSC also said that the government will put Seoul Bank
under the state-run financial holding company as well,
unless a foreign buyer offers to acquire it by early next
year. In addition, it has approved revised reform plans
submitted by the six banks, which contains layoffs, office
reductions and plans to raise their profitability.

The commission overseeing the financial restructuring will
allow Peace Bank, Cheju Bank, Kyongnam Bank and Kwangju
Bank to opt to merge with healthy banks instead of being
putting under the state-run financial holding company, the
FSC official said. In the wake of the FSC move, the Korea
Stock Exchange halted stock trading of Hanvit, Cheju,
Kwangju and Kyongnam yesterday. Seoul Bank stock has
already been under trading suspension.

The over-the-counter Kosdaq market also made the same move
against its member Peace Bank. Noting that the FSC move is
tougher than bargained for earlier, market observers
predicted that it is expected to help the government's push
for bank restructuring gain further ground.

"The FSC move to retire all shares in the six banks is
unexpected," an analyst said. "It shows that the government
is determined to push for overhauling the banking sector
despite mounting resistance by labor unions."

Over the short-term, the capital-decrease order may come as
a drag to the market, but it will prove to be a positive
factor over the mid- and long-term, he said. (Korea Herald
19-Dec-2000)

KOREA AEROSPACE INDUSTRIES: Lenders in debt-to-equity swap
----------------------------------------------------------
Korea Aerospace Industries Co.'s creditors will take a
stake in the aircraft maker as part of a 530 billion won
($440 million) financing package that aims to secure an
investment by Boeing Co. and BAE Systems Plc.

Korea Exchange Bank and other lenders will swap 75 billion
won in debt for non-voting shares and grant 80 billion won
in loans, said Janet Lee, a spokeswoman at the Commerce,
Industry and Energy Ministry. The package, which lenders
will vote on this month, includes waiving 374.4 billion won
of payments on debt.

Eight months of talks with Boeing, the world's largest
aerospace company, and BAE Systems, Europe's No. 1 defense
equipment maker, have made little progress. Control of the
company and its financial problems were the main obstacles.
Korea Aerospace's total debt is three times its equity.

"Creditors will share the cost with shareholders to keep
the company in business," said Lee Jong Seung, an analyst
at Daewoo Securities Co. "What's needed to revive the
company is to attract foreign partners who can
help win overseas orders."

The size of the stake the creditors will get wasn't
disclosed. Creditors will supply the money after Korea
Aerospace's three main shareholders invest an additional
100 billion won by the middle of January, the Korean
ministry said. Boeing, BAE Talks Korea Aerospace is equally
owned by Daewoo Heavy & Machinery Ltd., a company spun off
from Daewoo Heavy Industries Co., Hyundai Motor Co., and
Samsung Techwin Co., formerly known as Samsung Aerospace
Industries Co.

"Talks with Korea Aerospace continue and we remain hopeful
that we can secure a good outcome," said BAE Systems
spokesman Mike Peters. "We submitted a competitive bid that
covers investment, finance and key technology. These things
also take a long time."

Phil Condit, chairman and chief executive of Boeing Co.,
said last month that issues about price and the level of
control in Korea Aerospace are being discussed and Boeing
will do "whatever it takes" to reach an agreement, adding
that there may be pauses and steps in the talks.

Until part of Korea Aerospace is sold to foreign investors,
money from its lenders and shareholders is key to keeping
the company afloat. Korea Aerospace can't break even unless
it wins overseas orders and invests in bigger plants,
Daewoo's Lee said.

Korea Aerospace was formed in October 1999 when Korea's
three largest business groups merged their aerospace
divisions. The merger was part of government efforts to
reorganize industries crippled by debts. Korea Aerospace,
which had debts of 858 billion won at the end of June, had
sales of 388.9 billion won in the first six months of this
year and posted a net income of 5.35 billion won, the
company said.

Korea Aerospace's paid-in capital will increase by 175
billion won to 464.2 billion won after shareholders and
creditors supply the money. Its debt-to-equity ratio will
be halved to below 150 percent of its equity, said a Korea
Aerospace planning department official who asked not to be
named.

Korean financial institutions made a similar transaction
only last week, when Daewoo Shipbuilding & Marine
Engineering Co.'s lenders, led by Korea Development Bank,
swapped debts of 1.17 trillion won for a 66.5 percent
stake. Daewoo Shipbuilding, the world's second-largest
shipbuilder, is also up for sale. (Bloomberg 19-Dec-2000)

KOREA LIFE INSUR.: Follows first-half trend of losses
KYOBO LIFE INSUR.: Follows first-half trend of losses
-----------------------------------------------------
From the beginning of April to the end of September, Korea
Life and Kyobo Life -- the two largest Korean life insurers
- recorded losses of 200 billion won apiece.

Several new companies in the local life insurance industry
posted 20 billion-50 billion won losses each. Domestic, and
overseas life insurance firms operating in Korea, incurred
a total of W700 billion in losses for the first half of the
current fiscal year, due largely to the sagging stock
market.

KOREA TELECOM: Fears of job losses spark strike
-----------------------------------------------
Korea Telecom (KT) workers began a strike yesterday which
could cripple the nation's top telephone company, as they
protested government privatisation plans that may cut jobs.

Last-minute talks between the union and management failed
to produce an agreement. "Talks are continuing and there
has been no impact on our operations," said
Mr Lee Jang See, a company spokesman.

About 4,000 workers, or 10 per cent of the company's
workforce, are taking part in the strike. About 60 percent
of the union's 38,000 workers voted on Dec 6 to go on
strike at the company, the nation's largest employer.
A strike may further hamper government plans to find
overseas investors for the company which owns virtually all
of Korea's local telephone lines as well as stakes in the
second-largest cellular company and No 2 Internet service
provider.

The government had planned to reduce its holding in KT to
33.4 percent, from 59 percent, by the end of the year
before privatising it fully by 2002. Its plan to sell a
portion of its stake to a "strategic foreign investor" was
delayed pending the awarding of three permits for new
mobile-phone services.

Overseas investors now are allowed to hold up to 33 per
cent of KT, a limit which the government wants to increase
to 49 percent. KT shares fell as much as 2.7 percent to
65,000 won in early trading yesterday. (Straits Times 19-
Dec-2000)


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

ANTAH HOLDINGS: To close 20 of UK-based affiliate stores
--------------------------------------------------------
Antah Holdings Bhd is taking action to close a third of the
United Kingdom-based JW Carpenter Ltd outlets in an effort
to turn around the retailer in which it has a 50 percent
stake.

The closures are to be phased over three to five years,
according to chairman Tunku Naquiyuddin Tuanku Ja'afar, who
said the group plans to close 20 of 58 JW Carpenter stores
in order to make the group more manageable. Tunku said JW
Carpenter had dragged down Antah's performance, resulting
in a net loss of RM161.45 million for the year ended June
30.

"Most of the losses were from the write down of Carpenters.
It alone was responsible for the RM129 million losses. That
has set us back," he told reporters after Antah's annual
general meeting.

First on the group's plans is the lifting by February next
year of JW Carpenter's creditors voluntary arrangement,
which have protected the company under the management of
court appointed administrators. On the sale of its 7-Eleven
operator Convenience Shopping Sdn Bhd for RM80 million, he
said the deal was being finalised. (The Edge 19-Dec-2000)

OMEGA HOLDINGS: Posts annual loss, but nears rehab end
------------------------------------------------------
Omega Holdings Bhd's scheme of arrangement and debt-
restructuring exercise may be at its tail-end, according to
the group's executive chairman Datuk Nik Ibrahim Kamil. But
the company nonetheless posted a net loss of RM8.50 million
for the financial year ended June 30, 2000.

Still, that was substantially down from a loss of RM688.5
million for the previous year. "The restructuring is on-
going. Hopefully, (it is) at the tail-end. We are
going through our accounts and our white knight's
accounts," Nik Ibrahim told reporters after the company's
annual general meeting.

Omega, which operated securities and asset management
businesses, is now dormant. It was at the centre of the
saga involving fugitive Datuk John Soh Chee Wen,
with allegations of irregularities in its subsidiary Omega
Securities Sdn Bhd's accounts, which had suffered huge
losses.

Soh used to own a substantial stake in Omega before the
present set of directors took over. According to Omega's
2000 annual report, it was opposing a petition by the Kuala
Lumpur Stock Exchange to wind up Omega Securities. The
business of another subsidiary, WK Securities Sdn Bhd, was
taken over by KL City Securities Sdn Bhd on July 8.

The company has announced a restructuring scheme that
includes a capital reduction of 298.94 million shares to
14.95 million shares; a new company that will assume
listing status; a share exchange with the new company's
shares; and a proposed acquisition of Broadland Garment
Industries Sdn Bhd -- the white knight.

In his statement, Nik Ibrahim also said the company's legal
proceedings against certain parties who had caused the
adverse financial conditions of Omega Securities and WK
Securities were still pending. (The Edge 19-Dec-2000)

PERWAJA STEEL: Gov't mulls sale of ailing steel firm
----------------------------------------------------
The Malaysian government has confirmed that it is
considering selling Perwaja Steel, which has recorded
losses totaling billions of ringgit.

Deputy Finance Minister Shafie Mohamed Salleh said the
government would consider offers for its wholly-owned steel
maker from any financially able company that also has the
necessary expertise. He told the Senate (upper house of
Parliament) that a study by the Corporate Debt Restructur-
ing Committee showed that the local steel industry suffered
badly from the (1998) economic downturn and from low
demand.

"Perwaja is not spared such fate and needs time to recover
with input of technical expertise and injection of addi-
tional operating capital," Mr Shafie said.

Perwaja, sited in the north-eastern state of Terengganu,
was planned as the centrepiece of Prime Minister Mahathir
Mohamad's industrialisation drive in the early 1980s.
Instead, the plant became one of the country's most
spectacular corporate disasters. It had accumulated losses
and liabilities totalling RM9.9 billion (S$4.5 billion) by
1996. Industry officials in June were quoted as saying
the plant had amassed a further RM800 million in accumu-
lated losses since then.

The Anti-Corruption Agency said earlier this year that it
was investigating a RM76.4 million payment made by Perwaja
for "consultancy fees". The payment allegedly ended up in a
Swiss bank account. (Business Times 19-Dec-2000)

UNITED CHEMICAL INDUSTRIES: SC rejects debt-to-equity plan
----------------------------------------------------------
The Securities Commission (SC) has rejected United Chemical
Industries Bhd (UCI)'s proposal to implement a debt-to-
equity conversion proposal involving RM30 million debts.

The company said it would consider an appeal to the SC on
the basis of a modified structure for the proposed
conversion. In a statement to the Kuala Lumpur Stock
Exchange, which was issued by Perwira Affin Merchant Bank
Bhd, UCI said the SC rejected the proposal in a letter
dated Dec 8.

Under the Oct 8, 1999 proposal, UCI planned to convert the
RM30 million in debts, due to Affin Finance Bhd and B I
Credit & Leasing Bhd, into 20 million new shares of RM1
each in UCI at an issue price of RM1.50 per share
credited as fully paid.

The debts to be converted into equity represent a
syndicated term loan obtained from the two companies to
part-finance the proposed acquisition of
the entire equity interest in Hongkew Holdings (M) Sdn Bhd.
The loan was fully drawn down on Jan 23, 1997 and was due
for repayment on July 23, 1999. (The Edge 19-Dec-2000)


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

NATIONAL STEEL CO.: SEC to allow lease of its mills
---------------------------------------------------
The Securities and Exchange Commission has allowed the
liquidator of National Steel Corp to lease out its steel
mills so they can be properly maintained before they are
sold.

The steel firm's liquidator, Danilo Concepcion, had asked
the commission leeway to lease out the steel mills in
Iligan province while the company's assets were being
liquidated. However, the SEC instructed Concepcion to
consult with National Steel's creditors in selecting the
lessee. The creditor banks had opposed plans to lease the
mills.

National Steel, with debt of 16.5 bln pesos, suspended
operations in November last year due to its financial
problems. Concepcion had said the sale of its assets may
take around six months.

PHILIPPINE TEL.AND TEL.: Creditors to own 60% after swap
--------------------------------------------------------
Creditors of Santiago-owned Philippine Telegraph and
Telephone Corp. (PT&T) will end up with 60 percent control
of the company if they agree to the proposed debt-to-equity
conversion plan.

But while creditors, which have a combined P8.9-billion
exposure in the company, will become majority owners, PT&T
chairman Jose Luis Santiago said the ownership will be
"widely dispersed."  Under the debt restructuring plan,
one-third or 33.33 percent of the total principal debt will
be converted into PT&T common shares, the value of
which should not exceed P1 per share.

The remaining balance will have a 10-year repayment term,
with a two-year grace period on interest payments and a
three-year grace period on principal payments. The balance
will be secured under a Mortgage Trust Indenture (MTI),
which covers substantially "all of the fixed assets of the
company and, up to the extent permitted by law, its
franchise including all licenses and permits."

The dollar-denominated loans will earn an interest rate
equivalent to the prevailing London Interbank Offered Rate
(Libor) plus 2 percent while the peso-denominated loans
will have an interest rate equivalent to the Treasury-bill
rate plus 2 percent.

As of June 30, PT&T has debts to 39 creditors. About 70
percent or P6.23 billion of the total P8.9-billion debt are
denominated in foreign currency. Among the local creditors,
the Philippine National Bank (PNB) has the biggest
exposure, senior vice-president for fund management and
restructuring group Gerardo R. de Leon told reporters last
Friday.

As of October 30, creditors accounting for 61 percent of
the total debts have given their approval to the indicative
terms and conditions of the restructuring plan. Aside from
the banks agreeing to a debt-to-equity conversion offer
involving one-third of the total debt, PT&T's parent,
Republic Telecommunications Holdings Corp. (Retelcom) has
also been granted the right to buy back the shares held by
creditors within an exclusive 18-month period.

Mr. Santiago said the company can exercise its right of
first refusal in the buyback option. He, however, declined
to provide details as to how they plan to raise the funds
forbuyback. The repurchase price, according to the
company's annual report, will not exceed P1 per share plus
interest equal to 91-day Treasury bill (T-bill) rate plus 2
percent.

"We can still exercise our right to match the first price
offered for our shares... The company can do that if we do
not exercise the option to buy back the shares," said Mr.
Santiago.

The PT&T chief also pointed out that the extent of the
conversion of the common shares will follow the ownership
limit as prescribed by the law. "The company has foreign
creditors... but still, we do not see the debt-to-equity
swap violating the 60-40 ownership rule as most of our
creditors are Filipinos," said Mr. Santiago.

He will again assume the position as PT&T president as
daughter Marilyn E. Santiago will be holding the consultant
for multi-ebiz services post. The company expects
completion of the definitive restructuring agreement before
the end of the calendar year. PT&T has obtained the
approval of the majority of its creditors - representing 61
percent of the outstanding debts - to agree on their
restructuring terms last October.

The grace period on debt repayment will provide breathing
space for the firm to concentrate on their broadband
services, which they are looking at spending $8 million.
They are currently building the infrastructure for the
service to start the operations by the second quarter next
year. (Business World 18-Dec-2000)


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

NATURAL PARK: Applies for business rehabilitation
-------------------------------------------------
The Central Bankruptcy Court issued an order approving the
plan of Natural Park Public Company Limited on December 18,
appointing "NPK" Management Service Co., Ltd. as the plan
administrator.

SUPALAI PLC: Debt Repayment to SCBPF under Debt
------------------------------------------------------
Supalai Public Company Limited has reported to the Stock
Exchange of Thailand that it has repaid debts owed to SCB
Asset Management Company Limited on behalf of SCB PRIME
OPEN END FUND and has issued and sold unsecured debentures
and convertible debentures.

1. The Company has repaid its debts owed to SCBPF in the
amount of Bt31,503,902.53 by converting into unsecured
debentures and convertible debentures totaling Baht 18.82
million. As a result, it has incurred a gain from debt
resturcturing of Bt12.68 million.

2. The Company issued and sold the "Unsecured Debentures of
Supalai Public Company Limited No 4 Due 2007"  to SCBPF in
the amount of 14,109 units at the price of Baht 841.2652
each, with yield at 2.5 percent per annum, for a  total of
Baht 11,869,410.71.

3. The Company has issued and sold the "Convertible
Debentures of Supalai Public Company Limited No.6 Due 2000"
to SCBPF in the amount of 6,950 units at the price of Baht
1,000 each, totaling Baht 6,950,000.

4. SCBPF has exercised its conversion rights pursuant to
all of its convertible debentures specified in Item 3 and
such conversion caused SCBPF to acquire ordinary shares in
the amount of 331,700 shares with the conversion price at
Baht 20.95 per share.

THAI IRYO GARMENT CO.: Pay workers or lose assets
-------------------------------------------------
Laid-off employees of Thai Iryo Garment Co won their case
for severance pay after a long struggle in the Labour Court
and were awarded more than 40 million baht.

Labour permanent secretary Irawat Chantaraprasert said the
Central Labour Court ordered Thai Iryo to pay compensation
amounting to 40.32 million baht, plus 15% interest per
year, to the laid-off workers by Dec 22, or the firm's
assets will be seized and auctioned to find money to
pay them.

He said an auction was likely as the company earlier
claimed it could not afford the whole sum. More than 4.9
million baht had been paid to the workers from the Labour
Ministry's employee assistance fund. Employee representa-
tives yesterday urged the ministry to consider allowing the
workers to borrow 200 million baht from the fund before
receiving compensation.

The Labour Protection and Welfare Department is looking
into whether the bankruptcy law allows the seizure and
auctioning of assets of the firm's four executives.
Inquires reportedly show the four - Nikorn Prachuabmoh,
Orawan Thiengtham, Juthathip Krairirk and Suneo Ichikaki -
remain well-off and that some assets of the company have
been transferred elsewhere. (Bangkok Post 17-Dec-2000)


S U B S C R I P T I O N  I N F O R M A T I O N

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