---

            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

                 Monday, January 8, 2001, Vol. 4, No. 5

                               Headlines

A U S T R A L I A

B-DIGITAL:  Revises Agreement to Cut Losses
DIGITAL NOW: Cuts Jobs
ONE.TEL:  Shares Plummet Valued $1.19B
WEBMD:  Losses Force Closure


C H I N A  &  H O N G  K O N G

CHINA MERCHANTS GROUP:  Will Unveil Restructuring Plan
SOUTH CHINA HOLDINGS:  Slashes 30 Jobs from Media Unit


I N D O N E S I A

BANK CENTRAL ASIA:  Sale Will Fetch IBRA Rp6Tril
BANK NIAGA:  Sale Will Fetch IBRA Rp6Tril
PT BUMI RESOURCES:  Sells Hotel for US$20M
PT INDOSPRING:  Two Banks Approve Debt Restructuring Plan


J A P A N

SOGO:  Sells $3.53B Building to Chinese Estate Holdings


K O R E A

HANIL LIFE INSURANCE:  Absorbed by Korea Life
HYUNDAI ELECTRONICS:  KDB Buys 80 Percent of Bonds
HYUNDAI ENGINEERING:  Seeks US$300M Foreign Currency Loan
HYUNDAI LIFE INSURANCE:  Absorbed by Korea Life
KOHAP:  Turns Over to CRV

SAMSHIN LIFE INSURANCE:  Absorbed by Korea Life
SSANGYONG COMMUNICATIONS:  Sells 67 Percent Stake


M A L A Y S I A

PPB GROUP:  Disposes of Losing Business Ventures
PROJECT AUTOMATIK:  Defaults on RM2B Debt


P H I L I P P I N E S

BW RESOURCES: Court Rejects Tan Travel Plea
NATIONAL POWER:  Privatization Bill May Resolve Dormant Debts
PHILIPPINE NATIONAL BANK:  PNB Revamps Board
PRYCE CORP.:  Fails to Pay P300M Debt


T H A I L A N D

SEACON SQUARE:  Issues BT1.2B Debentures


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

B-DIGITAL:  Revises Agreement to Cut Losses
-------------------------------------------
B-Digital wants to revise its agreement with U.S. mobile carrier
Verizon Wireless to minimize losses amounting to $50 million a
year, the Sydney Morning Herald reported on Thursday.

The Seven Networks subsidiary will not follow the original terms
of the Verizon deal to buy handsets and air time and resell to
consumers under its "B Clear and Simple" brands.

B-Digital was to have started operating in the U.S. last month
but, without a working agreement with Verizon, its ambitions
there look hazy. But still it will continue to negotiate to
change the agreement with Verizon.

The B-Digital shares closed at 30c and were suspended even before
the announcement was made.


DIGITAL NOW: Cuts Jobs
----------------------
Digital Now missed its revised profit target with expected losses
amounting to $4 million for the fiscal year despite a 50 percent
increase in revenue, Fairfax I.T. reported on Thursday. Digital
Now issued a warning that job cuts will be forthcoming.

The Australian digital imaging company, in a statement to the
Australian Stock Exchange, will re-focus its business in the
supply of hardware and software that enables photo-finishers to
provide digital imaging to their customers.

The reduction in workforce will cut operating costs by
approximately $4 million per annum, making the company profitable
by mid-2001.

Gary Mueller will be the new chief executive officer and member
of the board while co-founder Steve Giordano will be executive
vice-president, worldwide sales and marketing. He will focus on
key large account sales.

Australian digital imaging company IXLA holds a 40 percent stake
in Digital Now. IXLA chairman Soon Heng Teh -- and Former Sausage
Software managing director Craig Welch -- have non-executive
director's positions on Digital Now's board.

Digital Now was the first United States-based technology company
to reverse list on the Australian Stock Exchange rather than the
U.S. Nasdaq.


ONE.TEL:  Shares Plummet Valued $1.19B
--------------------------------------
One.Tel shares plummeted to their lowest level in two years, with
a value of $1.19 billion more than what the company is spending
for it mobile phone network, according to the Thursday edition of
the Sydney Morning Herald.

Last year the company spent $530 million acquiring mobile phone
spectrum. An outlay of $1.15 billion in construction, maintenance
and financing costs associated with its network has been planned.

One.Tel shares fell to 45c with investors placing One.Tel's
international operations or any value on its local Internet and
fixed line call services to nil. The company has 2.2 million
customers.

Other telecom carriers also suffered weak share price. Hutchison
Telecommunications Australia shares hit a record low of $1.24.  
This placed the value of Hutchison at $895.77 million.

One.Tel has raised $1.25 billion in cash since February 1999 from
large influential investors such as Kerry Packer's Publishing &
Broadcasting, Rupert Murdoch's News Corp. and BT Funds
Management, along with other institutional investors. PBL has
invested $495 million and News Corp. $695 million. Both have
provided free advertising to One.Tel on top of these investments.

Both Packer and Murdoch still have options to exercise in One.Tel
and have publicly stated that they do not intend to sell their
holdings.

One.Tel also will roll out high-speed data services in Australia
and Europe rather than expanding in Singapore.

One.Tel had about $300 million in cash as at June 30, 2000, and
telecom analysts estimate that this could now be closer to $150
million.

The company will start drawing down funds from its $1.15 billion
debt facility this month to start paying for the mobile network
that has been built by U.S. telecom equipment supplier Lucent
Technologies.

One.Tel set up a network in Sydney that cost $85 million provided
by Lucent while in four other cities the cost totaled $300
million. These costs will increase the company's debt to about
$500 million.


WEBMD:  Losses Force Closure
----------------------------  
Two ventures between U.S.-based Internet health information
company WebMD Corp. and Australia's News Corporation will be
closing their doors following losses of $US2 billion, the
Australian reported on Thursday.

News Corp. had taken a 10.8 percent stake in WebMD in return for
about $US1 billion in assets.

WebMD started to provide services to News Corp. in December 1999
trough TV platform in the US.

News Corp. spokesman Andrew Butcher said they will be splitting
assets, with WebMD taking back 50 percent in the Health Network
channel to take back 100 percent control of the loss-making
channel.

Marty Wygood, WedMD chief executive officer, is trying to bring
back policy to the basics as its shares plummeted last year.

Its main money-spinner is in the relatively mundane area of
online provision of healthcare claim form processing. WebMD said
its new alliance with News Corp. was part of its ongoing
restructuring.

The company is trying to boost existing revenue streams and last
week ended a revenue sharing agreement with DuPont.


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

CHINA MERCHANTS GROUP:  Will Unveil Restructuring Plan
------------------------------------------------------
China Merchants Group will unveil its restructuring plan on
January 24 before the start of the Lunar New Year holidays,
Quamnet News reported on Thursday.

Zhao Huxiang, managing director of China Merchants Holdings
(International) Co., the group's Hong Kong-listed arm, said Baker
& McKenzie will act as advisor for the group and had finished its
restructuring report which was due in July of last year.

Zhao said the restructuring will focus on ports and will not have
a big impact on the company.


SOUTH CHINA HOLDINGS:  Slashes 30 Jobs from Media Unit
------------------------------------------------------
South China Holdings Ltd. had slashed 30 jobs from its media unit
because the company is implementing a realignment program.

The laid-off staff came from the editorial, back-up, sales and
design teams from its 17 magazines, Quamnet News reported on
Thursday.


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

BANK CENTRAL ASIA:  Sale Will Fetch IBRA Rp6Tril
------------------------------------------------
Bank Central Asia and Bank Niaga will be sold for Rp6 trillion
contributing to Indonesian Bank Restructuring Agency (IBRA)'s
goal to raise Rp 27 trillion in cash this year.

Chairman Edwin Gerungan, IBRA chairman, said the two banks were
supposedly up for sale in December but poor market conditions
prevailed. The sale will push through in June of this year, the
Jakarta Post reported on Thursday.

Rizal Ramli, Coordinating Minister for the Economy, said BCA and
Bank Niaga sale would be realized sometime between the first and
second quarter of 2001.

IBRA raised about Rp20.7 trillion in the 2000 budget in nine
months. This year, it hopes to raise Rp20.7 trillion. The agency
is mandated to raise cash by selling the various banking assets
under its management to help finance the state budget deficit.  
There will also be a huge layoff this year to reduce its
workforce, Chairman Gerungan said.

Dipo Alam, assistant to the coordinating minister for the
economy, said the divestment of the government in BCA and Bank
Niaga would help restore investors' confidence in the economy.


BANK NIAGA:  Sale Will Fetch IBRA Rp6Tril
-----------------------------------------
Bank Central Asia and Bank Niaga will be sold for Rp6 trillion
contributing to Indonesian Bank Restructuring Agency (IBRA)'s
goal to raise Rp 27 trillion in cash this year.

Chairman Edwin Gerungan, IBRA chairman, said the two banks were
supposedly up for sale in December but poor market conditions
prevailed. The sale will push through in June of this year, the
Jakarta Post reported on Thursday.

Rizal Ramli, Coordinating Minister for the Economy, said BCA and
Bank Niaga sale would be realized sometime between the first and
second quarter of 2001.

IBRA raised about Rp20.7 trillion in the 2000 budget in nine
months. This year, it hopes to raise Rp20.7 trillion. The agency
is mandated to raise cash by selling the various banking assets
under its management to help finance the state budget deficit.  
There will also be a huge layoff this year to reduce its
workforce, Chairman Gerungan said.

Dipo Alam, assistant to the coordinating minister for the
economy, said the divestment of the government in BCA and Bank
Niaga would help restore investors' confidence in the economy.


PT BUMI RESOURCES:  Sells Hotel for US$20M
------------------------------------------
PT Bumi Resources Tbk. will sell Hotel Bumi Tashkent
International located in Uzbekistan for US$20 million as the
company shifts its core business from the tourism industry to
oil, said Eddie J. Soebari, Director of Finance of PT Bumi
Resources Tbk.

He said the hotel had a book value of Rp120 billion as of
December 31 of last year but an assessor placed the value at
US$30 million, according to the Thursday edition of Bisnis
Indonesia.

The company will release the hotel if a buyer can pay the right
price.

PT Bumi Resources is currently developing oil fields Block R2 and
Block 13 in Yemen.


PT INDOSPRING:  Two Banks Approve Debt Restructuring Plan
---------------------------------------------------------
Sanwa Bank and Sumitomo Indonesia Bank approved PT Indospring
Tbk's debt restructuring plan using the refinancing option. But
it is still negotiating with another two banks, Bank Bali and ABN
AMRO Bank, Bisnis Indonesia reported Thursday.

Bambang Heru Sanyoto, Finance Director of PT Indospring Tbk.,
said the company's debt that has been restructured as of December
31, 2000, was US$4.44 million -- Rp9.008 billion from Sanwa Bank
and US$2.5 million from Sumitomo Bank. The restructuring is
expected to last eight years with a refinancing option by the end
of the fifth year. The interest rate used in the debt
restructuring process is progressive.

He said the company's principal debt in Bank Sanwa was US$3.936
million while in Bank Sumitomo US$ 2.174 million. Installment
payments of the debts were delayed because of the economic crisis
that hit the country. The delay caused the debt to increase by
US$503.4 thousand and Rp2.899 billion to Sanwa Bank and US$330.3
thousand to Sumitomo Bank.

Meanwhile the negotiations with two other banks, Bank Bali and
ABN AMRO are still underway. But according to Bambang, in
principle the two banks have agreed with the restructuring scheme
proposed by the company. He said the two banks had already
approved in principle the restructuring plan four months ago.

PT Indospring's total amount of debts in the two banks are US$4.3
million and Rp7.4 billion in Bank Bali, and US$1.3 and DM844.400
in ABN AMRO Bank.


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

SOGO:  Sells $3.53B Building to Chinese Estate Holdings
-------------------------------------------------------
Sogo Co. of Japan sold to Chinese Estate Holdings a 450,000
square foot commercial building in Causeway Bay for $3.5 billion,
Hongkong iMail reported on Thursday.

New World Development chairman Cheng Yu-tung revealed yesterday
that Joseph and Thomas Lau, brothers who control Chinese Estates
Holdings, had bought the building. The market valuation was
between $3.3 billion to $4 billion and translates into an
accommodation value of $7,844 per sq. ft.

During negotiations the building's owner wanted to include the
retail operation; the buyer will pay $3.75 billion for the
building only. After several rounds of negotiations, the
transaction price was set at $3.53 billion.

Chow Tai Fook was used as investor rather than New World
Development because it has $6 to $7 billion cash on hand.

Mr. Cheng said there would be no layoffs and no name change. He
expects a 9 to 10 percent annual return.

The new investment by Chinese Estates will surpass the size of
rival Hang Lung Development, which has 439,009 sq ft of
commercial properties in Causeway Bay and Wan Chai.

The sale will help Sogo's legal caretakers to repay the company's
$127.16 billion debt.


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

HANIL LIFE INSURANCE:  Absorbed by Korea Life
---------------------------------------------
Korea Life Insurance will absorb insolvent South Korean insurance
firms Samshin, Hyundai and Hanil after undergoing
recapitalization in the absence of suitable buyers, Asia Pulse
reported on Wednesday.

Korea Life will purchase the three insolvent insurance firms
through purchase and assumption (P & A) in case no buyers show
interest.


HYUNDAI ELECTRONICS:  KDB Buys 80 Percent of Bonds
--------------------------------------------------
Korea Development Bank will buy 80 percent of Hyundai Electronics
Industries Co.'s bonds totaling 400 billion won that fall due
this month as a move to alleviate the company from its present
liquidity problems.

Aside from the 80 percent, the remaining 20 percent will be
settled by the company. KDB will also do the same for the bonds
coming due next month, Asia Pulse reported on Wednesday.


HYUNDAI ENGINEERING:  Seeks US$300M Foreign Currency Loan
---------------------------------------------------------
Hyundai Engineering & Construction will seek an additional US$300
million foreign currency loan from Korea Development Bank and
five other local banks offering guarantee for repayment, Korea
Industry Update reported on Wednesday.

European financial institutions ING Baring, Barclays and Societe
Generale have shown interest in participating in the extension of
the much-needed currency loan.

Last year creditors rolled over for an additional six months some
951.8 billion-won maturing Hyundai debts.


HYUNDAI LIFE INSURANCE:  Absorbed by Korea Life
-----------------------------------------------
Korea Life Insurance will absorb insolvent South Korean insurance
firms Samshin, Hyundai and Hanil after undergoing
recapitalization in the absence of suitable buyers, Asia Pulse
reported on Wednesday.

Korea Life will purchase the three insolvent insurance firms
through purchase and assumption (P & A) in case no buyers show
interest.


KOHAP:  Turns Over to CRV
-----------------------------
Kohap Co. will be turned over to a Corporate Restructuring
Vehicle (CRV) company after failing to follow through with the
self-rescue efforts as agreed upon by the government and
creditors, the Digital Chosun reported on Wednesday.

The CRV will handle the firm's bad assets, which in turn will be
handed over to the creditors who in turn will serve as
shareholders.

Kohap will be the first local company in which the CRV will take
over the managerial rights for restructuring.


SAMSHIN LIFE INSURANCE:  Absorbed by Korea Life
-----------------------------------------------
Korea Life Insurance will absorb insolvent South Korean insurance
firms Samshin, Hyundai and Hanil after undergoing
recapitalization in the absence of suitable buyers, Asia Pulse
reported on Wednesday.

Korea Life will purchase the three insolvent insurance firms
through purchase and assumption (P & A) in case no buyers show
interest.


SSANGYONG COMMUNICATIONS:  Sells 67 Percent Stake
-------------------------------------------------
Ssangyong Cement will sell its 67.4 percent stake in subsidiary
Ssangyong Information and Communication to a still unknown
American investment firm.

Cho Hung Bank President Wee Sung-bok said that according to the
provisional sales agreement, the amount involved is 300 to 400
billion won. The agreement can turn into an official contract
anytime, Asia Pulse reported on Wednesday.


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

PPB GROUP:  Disposes of Losing Business Ventures
------------------------------------------------
PPB Group will sell its 35 percent stake in RA-PPB (TOPS) Sdn
Bhd. as part of its streamlining through the disposal of loss-
making businesses. There are 39 TOPS supermarkets in Malaysia.
Its partner, billionaire Robert Kuok group, announced the sale of
the stake to its supermarket joint-venture partner Dutch Royal
Ahold BV for RM61.8 million. Its investment in the venture is
believed to be slightly higher.

The restructuring plan calls for the merger of its edible oil
refining subsidiaries, PPB Oil Palm Bhd and Federal Flour Mills
Bhd, and the sale of its 26 percent interest in Shangri-La Hotels
(M) Bhd to Shangri-La Asia Ltd, the Edge Daily reported on
Thursday.

PPB Group entered the retail industry in the early 1980's but
because of recession the group decided to withdraw from the
retail sector.

In 1997, the group re-entered the retail business after teaming
up with Royal Ahold. The joint-venture company acquired 27
supermarkets from the Parkson group, a unit of debt-laden Lion
Group, and seven supermarkets from Yahona Looking Good.
Billionaire Robert Kuok owns Royal Ahold.


PROJECT AUTOMATIK:  Defaults on RM2B Debt
-----------------------------------------
Projek Usahasama Transit Ringan Automatik Sdn Bhd (Putra), a unit
of Renong Bhd., failed to pay the interest service of RM255.3
million for its RM2 billion loan, the Star OnLine reported on
Thursday.

Putra is asking creditors to extend the moratorium period on the
interest/profit payments until April 30 and to waive a 1 percent
penalty for the period from Sept. 30, 1999, to April 30, 2001, on
all outstanding interest/profit payments.

The government had planned to buy Putra's assets since it is on a
debt restructuring process monitored by the Corporate Debt
Restructuring Committee.


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

BW RESOURCES: Court Rejects Tan Travel Plea
-------------------------------------------
Pasig Regional Trial Court branch 153 judge Briccio Ygana has
rejected any business travel abroad for BW Resources Corp. (BWRC)
majority stockholder Dante T. Tan because the court has not
"acquired jurisdiction over him".

Ygana said Tan's arraignment would be on January 16. So Tan does
not need the court's permission to travel, according to the
Thursday issue of the Business World.

But the court failed to consider that Mr. Tan posted bail
amounting to P120,000 for his provisional liberty through his
counsel Agnes Maranan. This is an implied recognition of the
court's power to hear the case and jurisdiction over the parties.


NATIONAL POWER:  Privatization Bill May Resolve Dormant Debts
-------------------------------------------------------------
National Power Corp. (Napocor) and the Department of Energy (DoE)
will wait for the approval of the Electricity Industry Reform
bill in Congress on January 8 to 12 to resolve the handling of
stranded liabilities and grouping of assets that remain
deadlocked, according to the Thursday issue of Business World.

Energy Secretary Mario V. Tiaoqui said he prefers the passage of
the privatization bill (Electricity Industry Reform bill) because
it is allowed in the Napocor charter. He prefers to go ahead with
restructuring measures first before selling off assets.

The World Bank (WB) and the Asian Development Bank (ADB) have  
stopped extending loans to energy-related projects pending the
passage of the power reform bill. ADB is funding the
transmission, interconnection and reinforcement project worth
$200 million.


PHILIPPINE NATIONAL BANK:  PNB Revamps Board
--------------------------------------------
The board of directors of Philippine National Bank (PNB) will be
revamped as part of its rehabilitation plan with the Bangko
Sentral ng Pilipinas (BSP). The government will lose two seats on
the board because its holdings were diluted from 30.4 percent to
16 percent, while beer magnate Lucio Tan now owns a 70 percent
share, according to the Thursday issue of the Philippine Daily
Inquirer. Finance Secretary Jose T. Pardo said this is part of a
plan to streamline management.

The government has been represented on the PNB board by PNB chair
Andres Narvasa, PNB President Feliciano Miranda Jr., Nieves
Confesor, Cielo Macapagal-Salgado and Roberto Marquez. Tan, on
the other hand, was on the board along with associates Enrique
Filamor, Macario Te, and Florencio Santos.

Respected businessman Washington Sycip represented the 7 percent
stake held by public shareholders while Hong Kong fund manager
Templeton Assets Management Inc. elected Roberto Romulo as its
representative in the board.

Former PNB president Benjamin Palma-Gil and director Gregorio
Santayana have been ousted from the board.

The bank has declared losses since 1998 mainly because of a bad
loans ratio amounting to 38 percent of total loan portfolios in
the third quarter of last year.  These past due loans included a
P5.6-billion loan to National Steel Corp., P3 billion to the
Ramon Jacinto Group and P2.26 billion to the Guoco Group.


PRYCE CORP.:  Fails to Pay P300M Debt
-------------------------------------
Pryce Corporation has failed to pay the principal on the P300
million long-term commercial paper due to United Coconut Planters
Bank on December 8 of last year, causing the Philippine Ratings
Service Corporation (PhilRatings) to suspend its "PRS A" rating,
Manila Bulletin reported on Thursday.

PhilRatings said Pryce and the bank were negotiating the debt
before the December 8 maturity date but have not submitted a
report on the status to the stock exchange.


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

SEACON SQUARE:  Issues BT1.2B Debentures
----------------------------------------
Seacon Square will issue Bt1.2 billion in debentures at low
interest and at a fixed term to help pay its mounting debt.

Tatiya Sosthikyl, managing director of Seacon Development Co.
Ltd., said the debenture will reduce its interest burden by more
than Bt20 million a year, according to the Thursday issue of the
Bangkok Post.

Seacon Square plans to issue two types of debentures. The first
type, totaling 650 million baht with a maturity period of three
years and six months, would carry a 6 percent annual interest to
be repaid every three months.



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 Nineza, Editors.

Copyright 2001.  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 ***