/raid1/www/Hosts/bankrupt/TCRAP_Public/001229.MBX           T R O U B L E D   C O M P A N Y   R E P O R T E R

                       A S I A   P A C I F I C

             Friday, December 29, 2000, Vol.3, No. 253

                             Headlines


* A U S T R A L I A *

BULONG OPERATIONS:  Gives Noteholders 95 Percent Equity


* C H I N A  &  H O N G  K O N G *

BEIJING LIGHTBUS:  Isuzu Sells Investment
CHINA MERCHANTS:  Incurs HK$84.37M Loss on Share Sale
DAH HWA INTERNATIONAL:  HK$12.77M Net Loss for Half-Year
EVERBEST CENTURY:  HK$18.44M Net Loss for Half-Year Ending Sept.
HUANENG POWER:  Bank of China Grants 6.95 B Yuan Credit Facility

HYCOMM WIRELESS:  HK$18.85M Net Loss for Half-Year Ending Sept.
KESSEL INTERNATIONAL:  HK$15.3M Net Loss for Half-Year  
KUNMING MACHINE:  Yunnan Gov't. Sells Holdings to Prevent Losses
NORTHERN INTERNATIONAL:  HK$8.04M Net Loss for Half-Year  
QPL INTERNATIONAL:  Repays Debt Ahead of Schedule

ORIENTAL UNION:  $35.72M Net Loss for Half-Year Ending Sept. 30


* J A P A N *

DAI-ICHI KANGYO BANK:  Chase Manhattan Buys Escrow Business
HOKKAIDO INTERNATIONAL:  Hokkaido Gov't. Official to Head Air Do
JAPAN TOBACCO:  JT to Close Plant at British Unit
KUMAGAI GUMI:  Creditor Banks Agree to 450 Bln Yen Debt Waiver
LIFE CO:  Hopes to Restart as Wholly Owned Unit of Aiful
NESTLE SA:  TSE to Delist Nestle on March 27


* K O R E A *

HYUNDAI GROUP:  Defers $12M Payment to North Korea
INCHON INTERNATIONAL:  Pressured to Raise Funds Through IPO
SAMSUNG MOTORS:  Creditors Will Sell Shares to Pay Debt


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

BW RESOURCES:  PSE President Asks Brokers to Reply to Charges
UNIWIDE:  Casino Group Intends to Infuse P4B


* T H A I L A N D *

MDX PUBLIC:  Appoints Arthur Andersen
THAI PETROCHEMICAL:  CEO Ousted After Three-Year Battle


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

BULONG OPERATIONS:  Gives Noteholders 95 Percent Equity
-------------------------------------------------------
Bulong Operations Pty. has turned over 95 percent of its equity to
noteholders as part of its debt-restructuring plan.

Standard & Poor's Corp. reduced its rating to single-D from
double-C after the company missed an interest payment to British
bank Barclays Plc., giving the parent company a standstill
agreement as well as providing an A$15 million loan to stay
afloat, according to a Reuters report.

The British bank is waiting for the approval of the court and
approval from shareholders before agreeing to the restructuring,
Bulong said in a statement.

If approved, a requirement for a semi-annual interest payment into
a debt service account will be removed, Bulong said. Also, June
2000 and December 2000 interest payments of US$11.562 million each
would be capitalised, it said.

Bulong, owned by Preston Resources Ltd., employs pioneering
technology to mine nickel and cobalt in the Australian outback.
The Bulong project has faced delays in ramping up production
schedules stemming from its use of complex pressure acid leaching
technology to mine nickel and cobalt from lateritic ores, once
regarded as worthless.

Financial difficulties came to light at the company when it failed
to generate enough cash to meet a June 15 interest payment on
US$185 million in senior secured fixed-rate notes due 2008.
Preston shares were suspended in 1999.


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

BEIJING LIGHTBUS:  Isuzu Sells Investment
-----------------------------------------
Isuzu of Japan will sell its 15 percent investment in Beijing
Lightbus because it is undergoing an asset restructuring plant
that will diversify its business to three Chinese research
companies, a Reuters report said.

Isuzu will sell its 24.012 million institutional shares in Beijing
Lightbus for 16.81 million yuan to China Aerospace Machinery
(Group) Corp., parent company of the three research firms, a
Shanghai Securities News published statement revealed.

Beijing Lightbus incurred heavy losses for the past three years.  
The company manufactures automobiles and light buses.

These losses caused Shanghai stock exchange to move Beijing
Light's domestic currency A shares to "particular transfer" on
Friday and capped at five percent up. Beijing Lightbus A shares
closed at 18.48 yuan on Friday, down from 18.78 yuan the previous
Friday.


CHINA MERCHANTS:  Incurs HK$84.37M Loss on Share Sale
-----------------------------------------------------
China Merchants Holdings (International) Co. Ltd. said it incurred
a loss of HK$84.37 million from the disposal of a 15.25 percent
stake in China Southern Glass Holdings Co. Ltd.

In a statement, the company said the disclosure was made by way of
correcting its six months to June results released earlier in the
year when it mistakenly stated an exceptional gain of 29.52 mln
hkd.


DAH HWA INTERNATIONAL:  HK$12.77M Net Loss for Half-Year
--------------------------------------------------------
Dah Hwa International (Holdings) Ltd. (0600), a leatherware
trading company, said its earnings dipped into the red with a net
loss of HK$12.77 million for the six months through September,
compared with a net profit of HK$1.88 million a year earlier. Loss
per share was 1.81 HK cents compared with earnings per share of
0.29 HK cents a year before.

Revenue rose 19.8 percent to HK$153.84 million. No interim
dividend was proposed, a Quamnet News report said.


EVERBEST CENTURY:  HK$18.44M Net Loss for Half-Year Ending Sept.
----------------------------------------------------------------
Everbest Century Holdings Ltd. (0578), a leather garment
manufacturer formerly known as Dragonfield Holdings, said its net
loss narrowed to HK$9.92 million for the six months through
September, from HK$18.44 million a year earlier. Loss per share
was 1.09 HK cents compared with 4.27 HK cents, a Quamnet News
said.

Revenue, meantime, fell 68 percent to HK$15.19 million. No interim
dividend will be distributed, unchanged from a year earlier.


HUANENG POWER:  Bank of China Grants 6.95 B Yuan Credit Facility
----------------------------------------------------------------  
Huaneng Power International, Inc. (NYSE: HNP; SEHK: 902) signed an
agreement with the Bank of China on Wednesday in respect of a RMB
6.95 billion Yuan credit facility to be granted by the Bank of
China to the company. The credit facility will provide strong
financial support to the company for its future development.

At the same time, Huaneng International Power Development
Corporation, the parent company of the Huaneng Power
International, Inc. was also granted a 3.05 billion yuan credit
facility by the Bank of China.

Huaneng Power International, Inc., the largest independent power
producer in China, develops, constructs, operates and owns large
thermal power plants throughout China.  


HYCOMM WIRELESS:  HK$18.85M Net Loss for Half-Year Ending Sept.
---------------------------------------------------------------
Hycomm Wireless Ltd., a property company formerly known as Plotio
Holdings, said it fell into the red with a net loss of HK$18.85
million for the six months through September, compared with a net
profit of HK$5.5 million a year earlier. Earnings per share were
1.8 HK cents compared with 0.88 HK cents.

Revenue, meantime, fell 47 percent to HK$32.87 million. No interim
dividend will be distributed, unchanged from a year earlier.


KESSEL INTERNATIONAL:  HK$15.3M Net Loss for Half-Year  
------------------------------------------------------
Kessel International Holdings Ltd., an electronic handheld
consumer product maker, said it posted a net loss of HK$15.3
million for the six months through September, compared with a net
profit of HK$38.2 million a year earlier. Loss per share was 4.8
HK cents compared with earnings per share of 11.9 HK cents, a
Quamnet News report said.

Revenue increased 20 percent to HK$505.3 million. No interim
dividend will be distributed, which is unchanged from a year
earlier.


KUNMING MACHINE:  Yunnan Gov't. Sells Holdings to Prevent Losses
----------------------------------------------------------------
Yunnan's provincial government decided to sell its 29 percent
stake in H share Kunming Machine Tool to Xian Communications
University Industrial Group to prevent being delisted from the
Shanghai stock market.

The government's holdings will be reduced from 41.8 percent to
12.8 percent but will still be the second-largest shareholder. The
stake, about 71.05 million state shares, will be sold at 2.07 yuan
each, a South China Morning Post news report said.

Changing ownership was an asset-restructuring requirement for the
state-owned enterprises (SOEs). The government also required the
industrial group to invest in energy-saving machine-tool-making
technology and will be subject to a three-year lock-up period for
its equity purchase.

Many SOEs incurred losses by swapping assets with their parent
companies to control losses and avoid trading suspension on the
stock market.


NORTHERN INTERNATIONAL:  HK$8.04M Net Loss for Half-Year  
--------------------------------------------------------
Northern International Holdings Ltd., a maker of electronic
translators and hand-held electronic games, said its net loss
narrowed to HK$6.87 million for the six months through September,
from HK$8.04 million a year earlier. Loss per share was 0.23 HK
cent compared with 0.36 HK cent, a Quamnet News report said.

Revenue, meantime, inched up 3.5 percent to HK$17.21 million. No
interim dividend will be distributed, unchanged from a year
earlier.


QPL INTERNATIONAL:  Repays Debt Ahead of Schedule
-------------------------------------------------
QPL International Holdings Ltd. Has disposed of its subsidiary to
repay in advance its UK creditor banks the balance of $370 million
before the deadline. The funds came partly from itself and partly
from the disposal of ASAT.

The spin-off of ASAT, a QPL International subsidiary, on Nasdaq
reduced the shareholders' holdings to 42.6 percent. QPL's turnover
dropped by 63 percent for the half-year ended October 31, CN-
Market News reported.


ORIENTAL UNION:  $35.72M Net Loss for Half-Year Ending Sept. 30
---------------------------------------------------------------
Oriental Union Holdings Ltd. reported a $35.72 million net loss
for the half year ended September 30. For the same period last
year the net profit dropped to $85.26 million. Turnover during the
period was $35.72 million. No interim dividend was declared, CN-
Market News reported.


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

DAI-ICHI KANGYO BANK:  Chase Manhattan Buys Escrow Business
-----------------------------------------------------------
Dai-Ichi Kangyo Bank's escrow business with an outstanding debt of
US$5 billion will be taken over by US Chase Manhattan Corp.

Chase's institutional trust division will take over the trust
administration and the deal will be finalized in the first quarter
of 2001. The bank is trying to expand its corporate trust
division, a Channel News Asia news report said.

Japanese banks have been suffering a string of bad loans and
diminishing profits because the local economy is weakening.


HOKKAIDO INTERNATIONAL:  Hokkaido Gov't. Official to Head Air Do
----------------------------------------------------------------
Hokkaido International Airlines, commonly known as Air Do, will
have a senior Hokkaido prefectural government official in the
position of president, which was vacated by Teruo Hamada in July.

Michimasu Ishiko, 60, will have his appointment finalized during
the shareholders' meeting in mid-February. He is currently in
charge of watching over Hokkaido's public corporations, according
to a Japan Times On Line report.

Before Ishiko, the Hokkaido government chose Hiromitsu Sawada, a
former Japan Airlines offcial. The delayed negotiations with the
prefecture and local firms about financial support convinced him
not to accept the post.

Air Do is currently receiving 450 million yen in emergency loans
from North Pacific Bank. Hokkaido will extend 1 billion yen in
loans while local businesses have agreed to put up another 1
billion yen in capital because of a prefecture's request.


JAPAN TOBACCO:  JT to Close Plant at British Unit
------------------------------------------------
Japan Tobacco Inc. said Monday it would close the plant of its
British subsidiary, Manchester Tobacco Co., at the end of this
month and liquidate the unit shortly. Jiji Press English News
Service reported Monday the company plans to dispose of the
British plant following its acquisition of the non-U.S. tobacco
business of RJR Nabisco.

Japan Tobacco bought Manchester Tobacco in 1992 to facilitate
exports to Taiwan. The subsidiary has also served as the base for
expanding operations in Europe and the Middle East.

With Taiwan's import restrictions lifted, Japan Tobacco decided to
close the plant earlier this year, the officials said.


KUMAGAI GUMI:  Creditor Banks Agree to 450 Bln Yen Debt Waiver
--------------------------------------------------------------
Kumagai Gumi Co. has finalized talks with 15 creditor banks on a
debt-waiver plan relieving the construction company of a 450
billion yen debt.

Sumitomo Bank raised its share on the plan by increasing 30
billion yen from its original pledge of 234 billion yen. Kumagai
in turn raised 20 billion yen capital through securitization and
the new shares to be issued to the creditors, a Japan Times On
Line report said.

In the securitize portion of the debt-waiver plan, 13 financial
institutions, including several regional banks, have agreed to a
debt-equity swap.

Fukui Bank and some regional banks refused to accept the plan even
though the individual waiver figures were furnished as early as
September.

The plan also calls for the resignation of top management, while
at the same time laying off 2,000 of its 6,000 employees. The
capital will also be reduced by about 65 billion yen.

Liabilities exceeded assets by 441.2 billion yen from the April to
September period. Net losses stood at 611.3 billion yen. The firm
aims to reduce its liabilities by the end of the business year in
March by securing the debt-waiver.


LIFE CO:  Hopes to Restart as Wholly Owned Unit of Aiful
--------------------------------------------------------
Failed Japanese credit card firm Life Co. hopes to restart as a
wholly owned unit of consumer finance firm Aiful Corp., informed
sources told Jiji Press on Tuesday. Life has decided to submit its
rehabilitation plan to Tokyo District Court on Wednesday, the
sources said.

If the plan is approved by creditors at their meeting scheduled
for Jan. 31, 2001, and then by the court, Life will restart under
Aiful as early as April. By making Life a group firm, Aiful will
be able to expand into the credit card business.

Under the plan, Life hopes to determine the amount of its debt
obligations, which will be substantially reduced because of the
business failure, and to repay them all in a lump sum, in a bid to
complete its rehabilitation procedure by the end of March.

Life will deplete its capital of 10,370 million yen to zero before
raising new capital of 70 billion yen by allotting all its shares
to Aiful.

Sumitomo Trust and Banking Co., set to become a shareholder
in Life, will acquire a 5 percent stake worth about 3.5 billion
yen from Aiful after the completion of the rehabilitation
procedure.

Life collapsed in May this year with debts of 966.3 billion yen,
hit hard by the massive bad loans related to real estate
investment and the failure of the former Long-Term Credit Bank of
Japan, now called Shinsei Bank, in 1998.


NESTLE SA:  TSE to Delist Nestle on March 27
--------------------------------------------
The Tokyo Stock Exchange said Tuesday it will delist the
Shares of Swiss food company Nestle SA from its foreign
section as of March 27, 2001. Jiji Press reports the move is in
response to Nestle's application for delisting lodged earlier this
month. The company cited its shares' low liquidity on the TSE.

The shares, which are currently placed on a monitoring post, will
be moved to a liquidation post on Wednesday and traded on the post
until March 26, one day prior to their delisting, the TSE said.


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

HYUNDAI GROUP:  Defers $12M Payment to North Korea
--------------------------------------------------
Hyundai Group has deferred its $12 million payment to the North
Korean government as part of a $942 million contract for the
development of tourism on the east coast of the country.

Kim Young Soo, a spokesman for Asan Corp., which oversees
Hyundai's North Korean investments, told Bloomberg that Hyundai is
disposing of assets to rescue its construction arm. He said
Hyundai had difficulty raising the $12 million because it also has
problems with its affiliates.

Hyundai had agreed to pay the North Korean government $942 million
through monthly installments until 2005 for the rights to develop
the Kumgangsan region for tourism. The group already paid a third
of the amount.

Yoon Hee Seob, a construction analyst at Hana Securities Co. in
Seoul, said the delay might force Hyundai to pull out from North
Korea, which the government may have a hard time replacing.


INCHON INTERNATIONAL:  Pressured to Raise Funds Through IPO
-----------------------------------------------------------
Inchon International Airport Corp. (IIAC) will try to ease its
debt load of $2.7 billion by raising $500 million via an initial
public offering in late 2001 and dispose 51 percent of the
corporation by late 2002 to foreign investors.

IIAC management had already negotiated with officials from Paris,
London, Amsterdam and Frankfurt about managing other aspects of
the new airport. Privatization adviser Credit Suisse First Boston
will conduct due diligence for Inchon International Airport
Auhthority, a forerunner of IIAC.

The airport is built on reclaimed land between two islands off the
west coast of South Korea. The expansion of the proposed passenger
terminal and the addition of a second runway doubled the original
estimates to a total of $6 billion.  

The government carried only 40 percent of the budget cost while
the remaining 60 percent was financed through loans and bonds with
an 8 percent average interest rate.

Inchon aims to be a major hub in Northeast Asia for transporting
passengers and cargo, serving 27 million passengers and 1.7
million tons of cargo with five runways, a Reuters report said.


SAMSUNG MOTORS:  Creditors Will Sell Shares to Pay Debt
-------------------------------------------------------
Creditors will take Samsung Group to court if it refuses to pay
interest on Samsung Motors' 2.45 trillion won debt, which stood at
19 percent. They will ask the court's permission to exercise the
right to dispose of 3.5 million shares in Samsung Life Insurance
Co., which Samsung group Chairman Lee Kunhee donated in July of
last year as part of the group's efforts to repay Samsung Motors'
debt, a company official told Korea Herald.

The donated shares will be given to creditors on January 2, 2001.
These shares will be sold over the counter to pressure Samsung
Motors to pay its debts. Samsung will ask 30 of its group
affiliates to fill in the possible shortfall of 3.5 million shares
since they have debt guarantees tied to Samsung Motors.

Samsung Life Insurance shares will be priced at 700,000 won once
the company is listed on the main bourse.


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

BW RESOURCES:  PSE President Asks Brokers to Reply to Charges
-------------------------------------------------------------
The Philippine Stock Exchange (PSE) president has asked the
brokers involved in the BW Resources scandal to answer charges of
violating PSE rules on inside trading or price manipulation and
kiting after a temporary restraining order from the appellate
court is lifted.

PSE president Ramon T. Garcia will not pin the brokers involved
because of the temporary restraining order (TRO). But once it is
lifted they will follow through to its conclusion, a Business
World report said.

Under the law, insider trading is a criminal offense punishable by
imprisonment and expulsion from the Exchange.

The Court of Appeals slapped the Securities and Exchange
Commission (SEC) with an indefinite injunction last March, which
effectively prevented SEC from further investigating the BW
scandal. The freeze order resulted from questions on the legality
of the PSE1s report on the alleged price manipulation of BW
stocks.

The suspected brokers are PCCI Securities Brokers Corp., A.T. de
Castro Securities Corp., Asiasec Equities, Inc., Securities 2000,
Inc., Angping and Associates, Quality Investments and Securities
Corp., Guild Securities and Armstrong Securities.

Three brokers were also cited for minor violations are Belson
Securities, Inc., PNB Securities, Inc. and Aurora Securities, Inc.


UNIWIDE:  Casino Group Intends to Infuse P4B
--------------------------------------------
French retail group Casino Guichard-Perrachon SA will push its
plan to infuse P4 billion into the beleaguered Uniwide Group by
the end of January next year after creditor banks have approved
the terms of debt payment.

Some foreign retail groups reportedly withdrew their interest
because of the current political and economic issues facing the
country and delays in the approval of the rehabilitation plan.

Interim receiver chairman Monico V. Jacob said the Casino group is
positive with the extension given by two creditor banks for the
implementation of the rehabilitation plan. The last two banks that
need to approve the rehabilitation plan are Philippine National
Bank and Allied Banking Corporation.

If the parties fail to reach an agreement by the deadline, then
Uniwide chief operating officer Cherrie V. Gow will call off the
deal with the Casino group.


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

MDX PUBLIC:  Appoints Arthur Andersen
-------------------------------------
MDX Public Co. Ltd. has informed the Stock Exchange of Thailand
that Arthur Andersen Business Advisory Ltd. has been appointed
financial advisor and independent auditor.


THAI PETROCHEMICAL:  CEO Ousted After Three-Year Battle
-------------------------------------------------------
Prachai Leophairatana, chief executive officer of Thai
Petrochemical Industry, will be replaced by the managing director
of Effective Planners after three years of resisting the
restructuring of the company's US$3.7 billion debts.

Anthony Norman, managing director of Effective Planners, will
manage the company through an executive board and will hold the
post for six months until a permanent replacement is appointed.  
The replacement is expected to be a Thai national, a South China
Morning Post source has learned.

Effective Planners, an accounting firm that is a subsidiary of
Australian-based Ferrier Hodgson, drew up the restructuring plan
resisted by Mr Prachai.

In a letter to the Stock Exchange of Thailand, Mr. Prachai was
invited by Effective Planners to assist the new management in an
advisory capacity to support the implementation of the debt plan.

Mr. Prachai has refused to accept his defeat, calling his ouster
unlawful. His family founded TPI 20 years ago.

The company and its financial advisor are still in the process of
formulating the debt restructuring agreement. Creditors will be
asked to consider a reduction in interest payments and to extend
the repayment period including transfer of assets to offset the
loan.



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

Troubled Company Reporter -- Asia Pacific is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
DC USA. Lexy Mueller, Managing Editor, James Philip P.
Jover and Maria Vyrna Nieza, Editors.

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

This material is copyrighted and any commercial use, resale
or publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
prohibited without prior written permission of the
publishers.  Information contained herein is obtained from
sources believed to be reliable, but is not guaranteed.

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

                      *** End of Transmission ***