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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

          Wednesday, January 3, 2001, Vol. 4, No. 2

                            Headlines


A U S T R A L I A

HIH INSURANCE:  Former FAI Chief Sells HIH Insurance Shares


C H I N A  &  H O N G  K O N G

HUANENG POWER: Sells 2.52B Yuan of Shares to Pay Debt
PETROCHINA:  Retrenches and Pays 35,000 Employees
PROSPER eVISION:  Parent Company Sells 33 Percent Stake
SINOPEC:  To Lay Off 100,000 Workers over Five Years
SKYWORTH DIGITAL HOLDIMGS:  Price War Causes Losses


J A P A N

INTEC:  Corrects Net Loss Report


K O R E A

HANWA GROUP:  Stock Market Value Falls
HANARO INVESTMENT:  FSC to Place Bank Under Holding Company
HYUNDAI ENGINEERING:  Founder Invests 78B Won in HEC
HYUNDAI GROUP:  Market Valuation Falls
LG GROUP:  Suffers Stock Value Fall

LG CHEMICAL:  Shareholders Approve Splitting To 3 Firms
KUMBO GROUP:  Market Valuation Declines by 48 Percent
SAMSUNG GENERAL CHEMICALS: Sells Plant for 300B Won
SAMSUNG GROUP:  Share Value Drops


P H I L I P P I N E S

PHILIPPINE NATIONAL BANK:  Board Likely to Roll Over Loan
VICTORIAS MILLING: KQVC Debt Restructuring Proposal Rejected


T H A I L A N D

ABK ENTERPRISES:  Shareholders Approve Debt Restructuring Plan
EASTERN PRINTING:  Creditors to Vote on Rehabiltation Plan
ROYAL CERAMIC INDUSTRY:  Converts Bt14M Loans into Equity
SIAM COMMERCIAL BANK:  Purchases Book Club Finance for Bt2.24B
THAI ELECTRONIC INDUSTRY:  Court Reschedules Review

THAI ENGINE MANUFACTURING:  Debt Increases to Bt6.86B
THAI PRECISION MANUFACTURING:  Gives Bangkok Bank 1.2M Shares
THAI TELEPHONE:  Court Approves Debt Restructuring Plan
THORESEN THAI:  Posts Bt78.42M Net Loss for Half Year  
TUNTEX: Tuntex Creditors Agree On Debt Plan


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

HIH INSURANCE:  Former FAI Chief Sells HIH Insurance Shares
-----------------------------------------------------------
Former FAI Insurance Ltd. chief executive Rodney Adler has
resigned from the board of HIH Insurance Ltd. and sold his
remaining shares.

Adler sold 550,00 ordinary shares at 26 cents each six days after
HIH's fiery annual general meeting on Friday, December 15,
according to a report in Asia Pulse.


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

HUANENG POWER: Sells 2.52B Yuan of Shares to Pay Debt
-----------------------------------------------------
Huaneng Power International Inc. plans to sell shares for about
2.52 billion to local investors to reduce debt. Huaneng Power
spokeswoman Ding Yi said the 2.52 billion is only an initial
amount the company intends to raise.

About 141 million yuan will go to repay debts from its
acquisition of the Huaneng Nanjing Power Plant and 1.07 billion
yuan will repay the short-term bank loans for the acquisition of
Shandong Huaneng Power Development Co. The remainder will be
applied to the company's long-term bank loans, which stood at
13.8 billion yuan as of June 30, the company official told
Bloomberg.

The company, listed in Hong Kong and New York, plans to sell ``A-
shares'' for 350 million in China, which only local investors may
buy. The pricing will not be set until shareholders approve the
plan in a meeting on February 15, 2001.

On December 26, the company was extended credit by bank of China
worth 6.95 billion yuan.


PETROCHINA:  Retrenches and Pays 35,000 Employees
-------------------------------------------------
PetroChina Co. will retrench some 35,000 employees and pay 50
months salary to every laid-off worker, costing the company a
total of 3.15 billion yuan and a write-off of 2 billion yuan,
Quamnet News reported.

Goldman Sachs, which sponsored the PetroChina initial public
offering earlier this year, expects the compensation and a 2
billion yuan write-off in assets to cause net profit to fall by 6
percent to 52.8 billion yuan in the current financial year,
according to the report.


PROSPER eVISION:  Parent Company Sells 33 Percent Stake
-------------------------------------------------------
China Convergent Corp. will sell a 33 percent stake in Prosper
eVision Ltd. to a third party for not less than HK$6.24 billion.  
As the sale was announced, Propser eVision shares fell 83.4
percent to 43 HK cents, Quamnet News reported.

The transfer of ownership was part of a deal for an unidentified
institutional investor to buy US$100 million of China Convergent
convertible exchangeable notes.

CVN Group applies two-way broadband interactive multi-media
technology to deliver video and audio content, entertainment,
information, e-commerce and broadband interactive multi-media
services via cable television networks to users in mainland
China.


SINOPEC:  To Lay Off 100,000 Workers over Five Years
----------------------------------------------------
China Petroleum and Chemical Corp. (Sinopec) plans to lay off
100,000 workers over five years to save 2 billion yuan.

Chen Ga, a company director, said next year 27,000 staff would be
laid off. The program cuts will cost 1.8 billion yuan. The
layoffs will save Sinopec 1.3 billion yuan a year starting in
2006, Bloomberg reports.


SKYWORTH DIGITAL HOLDIMGS:  Price War Causes Losses
---------------------------------------------------
Skyworth Digital Holdings has reported a net loss of HK$125.68
million in the six months to September 30, according to the South
China Morning Post.

Last year Skyworth reported a profit of HK$153.15 million. The
company's turnover shrank 11.3 percent to HK$1.54 billion from
HK$1.73 billion the previous year, despite higher sales. The Hong
Kong-listed company reported a net loss of HK$125.68 million,
against HK$153.15 million profit a year earlier.

Jimmy Chan Kui-tim, Skyworth Digital president, said the dumping
of stocks at discounted prices triggered unprecedented price
wars.

Mr Chan said Skyworth also suffered from a mismatch of
productivity and sales. Inventory in the six months surged nearly
78 percent to HK$1.55 billion, resulting in a provision of HK$51
million.

The company says it will have to consolidate its 154 distribution
centers in China.


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

INTEC:  Corrects Net Loss Report
--------------------------------
Intec Inc. corrected an earlier report, which should be 11.3
billion yen for the next six-month period, not a 496 million yen
profit.

The information-service company said it now expects a group net
loss for the full fiscal year after changing the calculation
method used to value securities holdings in line with the market-
to-market accounting system introduced this fiscal year, an Asian
Wall Street Journal report said.


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

HANWA GROUP:  Stock Market Value Falls
--------------------------------------
Hanwha Group has seen its stock market value fall 70 percent,
from 1.7 trillion won to 510 billion won, according to a Korea
Herald report.


HANARO INVESTMENT:  FSC to Place Bank Under Holding Company
-----------------------------------------------------------
The Financial Supervisory Committee yesterday decided to place
Hanaro Investment Bank under a state-run financial holding
company, together with four weak banks -- Hanvit, Peace, Kwangju
and Kyongnam.

The Korea Deposit Insurance Corp., the state deposit guarantee
agency, will soon request a permit for the financial holding
company, which is expected to be set up in March of next year,
the commission said.

The Korea Herald reported that after launching the holding
company, the government will decide whether to include other
distressed financial firms -- including Korea Exchange Bank (KEB)
-- and insurance companies.


HYUNDAI ENGINEERING:  Founder Invests 78B Won in HEC
----------------------------------------------------
Hyundai Group founder Chung Ju-yung made an additional investment
in Hyundai Engineering & Construction (HEC) by selling 15.66
million shares in Hyundai Motor amounting to 78.3 billion. The
Korea Herald reports the proceeds will be invested in Hyundai
Engineering.

The investment will raise Chung's stake in HEC from the present
11.45 percent to 15.51 percent, or 56.22 million shares.


HYUNDAI GROUP:  Market Valuation Falls
--------------------------------------
Hyundai Group shares' market valuation fell by 73.9 percent from
16.9 trillion won to 4.8 trillion won, according to a Korea
Herald report.


LG GROUP:  Suffers Stock Value Fall
-----------------------------------
LG Group shares fell from 26.7 trillion won at the beginning of
the year to 5.7 trillion won. Market valuation fell by 78.1
percent, the Korea Herald report reported.


LG CHEMICAL:  Shareholders Approve Splitting To 3 Firms
-------------------------------------------------------
LG Chemical shareholders have approved a plan to break up the
company into three independent entities. The Korea Herald reports
the plan will be effective on April 1, 2001, with LG Chemical
Investment (LG CI) remaining as holding company.

Following the split, LG Chemical will inherit 66 percent of the
parent company's assets and debts, while LG CI, and LG Household
accounted for 18 percent and 16 percent. Existing stockholders
will be asked to exchange one share for 0.18 shares in LG CI,
0.66 shares in LG Chemical and 0.16 shares in LG Household.

LG CI will focus on equity-investment management and developing
new strategic businesses and a bio-engineering division. By 2002,
however, the bio-engineering venture will be spun off because of
a 500 billion won foreign investment and will be listed in the
stock market in 2003.

LG Chemical, which produces PVC and intends to add display
materials and next-generation cells to its product line next
year, is expected to account for 77 percent, or 4 trillion won
($3.58 billion), of the parent company's total turnover this year
estimated at 5.2 trillion won.


KUMBO GROUP:  Market Valuation Declines by 48 Percent
-----------------------------------------------------
The Kumho Group's market valuation declined 47.6 percent from 350
billion won to 180 billion won, while the Ssangyong Group
suffered a 45.3 percent drop from 520 billion won to 290 billion
won, according to a report in the Korea Herald.


SAMSUNG GENERAL CHEMICALS: Sells Plant for 300B Won
---------------------------------------------------  
Samsung General Chemicals Co. sold its plant in Daesan for 300
billion won to Samsung Petrochemical Co. The company intends to
reduce debt from 2.4 trillion won to 1.3 trillion won with the
sale. BP Amoco PLC holds a 35 percent stake in Samsung
Petrochemical; Mitsui Chemicals Inc., 15 percent; and Samsung
Group, 50 percent, according to a report in the Asian Wall Street
Journal.


SAMSUNG GROUP:  Share Value Drops
---------------------------------
Samsung Group, under fire for its opaque governance structure,
suffered a 47.9 percent drop in the value of its shares, from
71.8 trillion won to 37.3 trillion won, according to a report in
the Korea Herald.


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

PHILIPPINE NATIONAL BANK:  Board Likely to Roll Over Loan
---------------------------------------------------------
The Monetary Board is expected to approve an emergency loan of
P15 billion to Philippine National Bank (PNB) when it meets next
year. In an interview with the Business World, Bangko Sentral
Governor Rafael B. Buenaventura said the roll over proposal was
part of the rehabilitation plan being finalized with the Bangko
Sentral.

Emergency loans are normally granted for 90 days on a renewable
basis with a majority vote of the seven-man monetary board.

The central bank, Bangko Sentral, will require PNB to reduce its
bad loan portfolio. It will also require PNB to shore up
subsidiary and overseas operations.


VICTORIAS MILLING: KQVC Debt Restructuring Proposal Rejected
------------------------------------------------------------  
Victorias Milling Co. (VMC) has rejected London-based Kest
Quartermain Venture Capital's (KQVC) new restructuring proposal.
The plan would call for loan to be granted if the creditor banks
issue a standby credit amounting to 108.5 percent of existing
loans. Manuel Manalac, Victorias president and majority
shareholder, presented the KQVC proposal for GE Capital Corp. to
invest in VMC.

Gerardo Anonas, acting Victorias management committee chairman,
said the proposal would not benefit the company and its
creditors. He is also executive vice president of East West
Banking Corp., a VMC creditor.

Anonas said GE wanted five or six foreign banks to confirm the
loan. In addition to the guarantees from existing creditor banks,
the proceeds will be used to retire Victorias' loans.


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

ABK ENTERPRISES:  Shareholders Approve Debt Restructuring Plan
--------------------------------------------------------------
Asia Hotel has approved a debt-restructuring plan for ABK
Enterprises. The plan calls for paying Bt621.79 million of the
Bt998.62 million principal in cash, with the remainder to be
converted to 9.98 million shares in ABK subsidiary BK Ratchathevi
Enterprise Co. BK Ratchathevi will have Asia Hotel as its largest
shareholder.

Bt185 billion in debt incurred from accrued interest through
September 30, 1999, will be forgiven while accrued interest of
Bt471.83 million from October 1, 1999, to November 29, 2000, will
be paid according to specific timetables, according to a report
in the Nation report.


EASTERN PRINTING:  Creditors to Vote on Rehabiltation Plan
----------------------------------------------------------   
Eastern Printing creditors will meet on January 16 to vote on the
company's business rehabilitation plan and extension of loans
equivalent to 10 percent of the company's total debts.


ROYAL CERAMIC INDUSTRY:  Converts Bt14M Loans into Equity
---------------------------------------------------------
Royal Ceramic Industry has converted 9.4 million shares to 14
creditors in exchange with loans worth Bt47 million into equity.
The conversion is part of a rehabilitation plan approved earlier
this year, the Nation reported.


SIAM COMMERCIAL BANK:  Purchases Book Club Finance for Bt2.24B
--------------------------------------------------------------
Siam Commerical Bank's wholly owned subsidiary, Chatuchak Assets
Management Co., bought distressed Book Club Finance for Bt2.24
billion, the Nation reported.


THAI ELECTRONIC INDUSTRY:  Court Reschedules Review
---------------------------------------------------
Thai Electronic Industry will answer challenges coming from three
creditors on its rehabilitation plan on January 12 as ordered by
the Central Bankruptcy Court, the Nation reported. The
rehabilitation plan was approved on December 20.


THAI ENGINE MANUFACTURING:  Debt Increases to Bt6.86B
-----------------------------------------------------
Thai Engine Manufacturing raised its debt to Bt6.86 billion after
the Central Bankruptcy Court approved a creditors' request, the
Nation reported.


THAI PRECISION MANUFACTURING:  Gives Bangkok Bank 1.2M Shares
-------------------------------------------------------------
Thai Precision Manufacturing Co. gave Bangkok Bank 1.2 million
shares worth Bt12 million as part of debt restructuring plan, the
Nation reported.


THAI TELEPHONE:  Court Approves Debt Restructuring Plan
-------------------------------------------------------
The Central Bankruptcy Court has approved a debt-restructuring
plan for Thai Telephone & Telecommunications. TT&T vice-president
Witit Sajjapong said the company could proceed with its plan to
convert Bt7 billion of debt from suppliers into equity.

According to a Bangkok Post report, the total restructured debt
will be Bt40.608 billion. 25.164 billion baht was owed to
financial creditors, 8.05 billion baht to major trade creditors
and 232 million baht to small suppliers of equipment and
services. A total of 7.163 billion baht was owed to related trade
creditors.

TT&T's major creditors include Sumitomo Bank, Krung Thai Bank,
BankThai, Credit Lyonnais and Bank of Sweden.

The company's four major shareholders four major shareholders --
Jasmine International Plc, Loxley Plc, Italian Thai Development
and Nippon Telephone & Telegraph -- now hold about 70 percent of
the company.


THORESEN THAI:  Posts Bt78.42M Net Loss for Half Year  
-----------------------------------------------------
Thoresen Thai Agencies and its subsidiaries reported a net loss
of Bt78.42 million ending September 30 compared to Bt308.34
milion loss for the same period last year. Its earnings per share
for the period stood at minus Bt1.84, compared with minus Bt7.95
the previous year, the Nation reported.


TUNTEX: Tuntex Creditors Agree On Debt Plan
-------------------------------------------
Tuntex (Thailand) Plc has reached an agreement in principle with
the remainder of its creditors for restructuring US$270 million
in debt, following the successful passage of a resolution
rescheduling the terms of its floating-rate notes due this month.

The Bangkok Post reports final documentation of the restructured
terms is expected to be completed prior to March 31. ADM Capital
is one of the two financial advisers to Tuntex, a vertically
integrated petrochemicals producer.

The restructuring was approved by creditors holding 96 percent of
the debts owed by Tuntex.



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