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                        A S I A   P A C I F I C

                 Tuesday, January 9, 2001, Vol. 4, No. 6

                                Headlines

A U S T R A L I A

GLOBAL FINANCE:  ACCC Bans Broker
PRESTON RESOURCES:  Fails to Meet Debt Repayment
PROJECT CONSTRUCTION: Suspends License


C H I N A  &  H O N G  K O N G

BENXI IRON and STEEL:  Bank of China Transfers RmB17B Debt
CHINA PETROLEUM GROUP:  Bank of China Transfers RmB17B Debt
CHINA PETROCHEMICAL GROUP:  Bank of China Transfers RmB17B Debt
CHINA SHIPPING:  Pursues Debt-To-Equity Conversion
COSCO GROUP:  Bank of China Transfers RmB17B Debt

JIANGXI OPTICAL:  Pursues Debt-To-Equity Conversion
PANJIN ETHYLENE CORP.:  Pursues Debt-To-Equity Conversion
PINGSHUO COAL MINE:  Bank of China Transfers RmB17B Debt
SHAOXING SILK:  Pursues Debt-To-Equity Conversion
ZHEJIANG CORP.:  Pursues Debt-To-Equity Conversion


J A P A N

PISA:  Seeks Liquidation, Leaving 86.5B Yen in Debt


K O R E A

CHIYODA LIFE:  Will Sue Former Execs
DAEWOO MOTOR:  Waits for General Motors to Announce Plans
SEROME TECHNOLOGY:  May Declare Losses


M A L A Y S I A

BESCORP INDUSTRIES:  Turned Over to New Firm
TENAGA NASIONAL: Prefers Managed Market


P H I L I P P I N E S

VICTORIAS MILLING:  Alternative Rehab Plan Submitted


S I N G P O R E

MESSER:  Sells Gas Plants for HK$11.9B


T H A I L A N D

BAN CHANG GROUP:  Creditors Want Rehab Plan Revised
BANGKOK LAND:  Forges Agreement with Creditors
NATIONAL FERTILIZER:  Gov't. Aid Needed to Foil Plant Shutdown
SIAM CITY BANK: Merges with Bangkok Metropolitan Bank
THAI HEAT EXCHANGE:  Files Rehab Plan on Dec. 21


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

GLOBAL FINANCE:  ACCC Bans Broker
---------------------------------
The Australian Securities & Investments Commission (ACCC) will
ban Global Finance principal John Margaria for life starting
January 4, 2001 over 21 fraud charges involving an $A3.4 million
loan.

Investors lost millions of dollars by subscribing to Global
Finance's mortgage schemes, the West Australian reported on
Friday.


PRESTON RESOURCES:  Fails to Meet Debt Repayment
------------------------------------------------
Preston Resources could not meet a debt repayment of $A380
million this year, according to the Friday edition of the
Australian Financial Review.

Shareholders had already lost money investing in the company,
which is scheduled to write-off half a billion dollars more.  
Last year Preston lost $A497 million.

In 1998 the company owned the Marlborough lateritic nickel
deposit in Queensland and bought Bulong nickel project for $A319
million from Resolute Resources, which produces 9,000 tonnes of
nickel a year.


PROJECT CONSTRUCTION: Suspends License
--------------------------------------
The Builders Services Authority has suspended Project
Construction's license after it completed a provisional
liquidation in December of last year, the Australian Financial
Review reported on Friday.

Six large contracts worth $A34 million on Woolworths'
developments at Buderim and Mt Gravatt in the Queensland area
will be affected.


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

BENXI IRON and STEEL:  Bank of China Transfers RmB17B Debt
---------------------------------------------------------
Bank of China has assigned China Orient Asset Management Corp.
(COAMC) to oversee the debt-to-equity transfer of five companies
totaling 17 billion renminbi. The companies are China National
Petroleum Industry Group, China Petrochemical Corp. (SINOPEC),
COSCO Group, Pingshuo Coal Mine, and Benxi Iron and Steel Corp.

COAMC will also receive creditor's rights to 208 enterprises
involving Rmb 42.36 billion in debts while the State council
approves debt-to-equity transfer plans for 37 of the 61
enterprises that under the management of COAMC, China On Line
reported on Friday.


CHINA PETROLEUM GROUP:  Bank of China Transfers RmB17B Debt
----------------------------------------------------------
Bank of China has assigned China Orient Asset Management Corp.
(COAMC) to oversee the debt-to-equity transfer of five companies
totaling 17 billion renminbi. The companies are China National
Petroleum Industry Group, China Petrochemical Corp. (SINOPEC),
COSCO Group, Pingshuo Coal Mine, and Benxi Iron and Steel Corp.

COAMC will also receive creditor's rights to 208 enterprises
involving Rmb 42.36 billion in debts while the State council
approves debt-to-equity transfer plans for 37 of the 61
enterprises that under the management of COAMC, China On Line
reported on Friday.


CHINA PETROCHEMICAL GROUP:  Bank of China Transfers RmB17B Debt
--------------------------------------------------------------
Bank of China has assigned China Orient Asset Management Corp.
(COAMC) to oversee the debt-to-equity transfer of five companies
totaling 17 billion renminbi. The companies are China National
Petroleum Industry Group, China Petrochemical Corp. (SINOPEC),
COSCO Group, Pingshuo Coal Mine, and Benxi Iron and Steel Corp.

COAMC will also receive creditor's rights to 208 enterprises
involving Rmb 42.36 billion in debts while the State council
approves debt-to-equity transfer plans for 37 of the 61
enterprises that under the management of COAMC, China On Line
reported on Friday.


CHINA SHIPPING:  Pursues Debt-To-Equity Conversion
--------------------------------------------------
Five companies are undergoing a renaming process after a debt-to-
equity conversion, China Orient Asset Management Corp. (COAMC)
has disclosed.

The five companies undergoing the registration and renaming
process, with debt-to-equity transfer, are China Ocean Shipping
(Group) Co. (COSCO), Jiangxi Phoenix Optical Instrument General
Factory, Panjin Ethylene Industry Corp., Shaoxing Silk Knitting
Factory and Zhejiang Chemical Fiber United Group Corp. According
to COAMC, one of these is ready for the withdrawal of shares,
China On Line reported on Friday.

Zhongguo Zhengquan Bao (China Securities) said on December 28
that COAMC would facilitate the withdrawal of shares for the
companies going through this debt-to-equity conversion.


COSCO GROUP:  Bank of China Transfers RmB17B Debt
------------------------------------------------
Bank of China has assigned China Orient Asset Management Corp.
(COAMC) to oversee the debt-to-equity transfer of five companies
totaling 17 billion renminbi. The companies are China National
Petroleum Industry Group, China Petrochemical Corp. (SINOPEC),
COSCO Group, Pingshuo Coal Mine, and Benxi Iron and Steel Corp.

COAMC will also receive creditor's rights to 208 enterprises
involving Rmb 42.36 billion in debts while the State council
approves debt-to-equity transfer plans for 37 of the 61
enterprises that under the management of COAMC, China On Line
reported on Friday.


JIANGXI OPTICAL:  Pursues Debt-To-Equity Conversion
---------------------------------------------------
Five companies are undergoing a renaming process after a debt-to-
equity conversion, China Orient Asset Management Corp. (COAMC)
has disclosed.

The five companies undergoing the registration and renaming
process, with debt-to-equity transfer, are China Ocean Shipping
(Group) Co. (COSCO), Jiangxi Phoenix Optical Instrument General
Factory, Panjin Ethylene Industry Corp., Shaoxing Silk Knitting
Factory and Zhejiang Chemical Fiber United Group Corp. According
to COAMC, one of these is ready for the withdrawal of shares,
China On Line reported on Friday.

Zhongguo Zhengquan Bao (China Securities) said on December 28
that COAMC would facilitate the withdrawal of shares for the
companies going through this debt-to-equity conversion.


PANJIN ETHYLENE CORP.:  Pursues Debt-To-Equity Conversion
---------------------------------------------------------
Five companies are undergoing a renaming process after a debt-to-
equity conversion, China Orient Asset Management Corp. (COAMC)
has disclosed.

The five companies undergoing the registration and renaming
process, with debt-to-equity transfer, are China Ocean Shipping
(Group) Co. (COSCO), Jiangxi Phoenix Optical Instrument General
Factory, Panjin Ethylene Industry Corp., Shaoxing Silk Knitting
Factory and Zhejiang Chemical Fiber United Group Corp. According
to COAMC, one of these is ready for the withdrawal of shares,
China On Line reported on Friday.

Zhongguo Zhengquan Bao (China Securities) said on December 28
that COAMC would facilitate the withdrawal of shares for the
companies going through this debt-to-equity conversion.


PINGSHUO COAL MINE:  Bank of China Transfers RmB17B Debt
-------------------------------------------------------
Bank of China has assigned China Orient Asset Management Corp.
(COAMC) to oversee the debt-to-equity transfer of five companies
totaling 17 billion renminbi. The companies are China National
Petroleum Industry Group, China Petrochemical Corp. (SINOPEC),
COSCO Group, Pingshuo Coal Mine, and Benxi Iron and Steel Corp.

COAMC will also receive creditor's rights to 208 enterprises
involving Rmb 42.36 billion in debts while the State council
approves debt-to-equity transfer plans for 37 of the 61
enterprises that under the management of COAMC, China On Line
reported on Friday.


SHAOXING SILK:  Pursues Debt-To-Equity Conversion
-------------------------------------------------
Five companies are undergoing a renaming process after a debt-to-
equity conversion, China Orient Asset Management Corp. (COAMC)
has disclosed.

The five companies undergoing the registration and renaming
process, with debt-to-equity transfer, are China Ocean Shipping
(Group) Co. (COSCO), Jiangxi Phoenix Optical Instrument General
Factory, Panjin Ethylene Industry Corp., Shaoxing Silk Knitting
Factory and Zhejiang Chemical Fiber United Group Corp. According
to COAMC, one of these is ready for the withdrawal of shares,
China On Line reported on Friday.

Zhongguo Zhengquan Bao (China Securities) said on December 28
that COAMC would facilitate the withdrawal of shares for the
companies going through this debt-to-equity conversion.


ZHEJIANG CORP.:  Pursues Debt-To-Equity Conversion
--------------------------------------------------
Five companies are undergoing a renaming process after a debt-to-
equity conversion, China Orient Asset Management Corp. (COAMC)
has disclosed.

The five companies undergoing the registration and renaming
process, with debt-to-equity transfer, are China Ocean Shipping
(Group) Co. (COSCO), Jiangxi Phoenix Optical Instrument General
Factory, Panjin Ethylene Industry Corp., Shaoxing Silk Knitting
Factory and Zhejiang Chemical Fiber United Group Corp. According
to COAMC, one of these is ready for the withdrawal of shares,
China On Line reported on Friday.

Zhongguo Zhengquan Bao (China Securities) said on December 28
that COAMC would facilitate the withdrawal of shares for the
companies going through this debt-to-equity conversion.


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

PISA:  Seeks Liquidation, Leaving 86.5B Yen in Debt
---------------------------------------------------
Pisa, an affiliate of failed Seiyo Corp., has asked the Tokyo
District Court to grant it a special liquidation petition,
leaving 86.5 billion yen in debt, according to the Friday edition
of the Jiji Press English News Service.

Pisa became the first failed company of the 30 affiliates of
Seiyo, the Saison Group's real estate developer that itself went
under in July. Seiyo owns 56 percent while 44 percent belonged to
Seibu department Ltd., a core company of the Saison Group. In
July of last year Seibu took over management.

Pisa is in the business of trading paintings and resort
development in Tokyo and Osaka.


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

CHIYODA LIFE:  Will Sue Former Execs
------------------------------------
A committee of Chiyoda Mutual Life Insurance Co. will sue its
former management for damages in formulating policies that led to
an expansion of its loan portfolio, resulting in losses and
eventually a bankruptcy filing last October.

The committee is composed of administrators, lawyers, certified
public accountants and tax accounts, according to the Monday
edition of Japan Times On Line. The bankrupt insurance company
will ask the Tokyo District Court to start damages evaluation
procedures.

During the 14-year term of Yasutaro Kanzaki as president huge
sums went to high-risk borrowers and high-return deals were made
without properly screening borrowers' credit histories and
creditworthiness, analysts observed.

Among the high risk borrowers were companies owned by Hideki
Yokoi, the disgraced owner of the Hotel New Japan, a Tokyo hotel
that was destroyed by fire in 1982, killing 33 people and
injuring 29.

In 1992, some Chiyoda Mutual executives recommended the company
refuse a loan to a financially troubled golf course operator, but
Kanzaki overruled them and the loan was approved, sources said.


DAEWOO MOTOR:  Waits for General Motors to Announce Plans
---------------------------------------------------------
Daewoo Motors is hoping that General Motors will announce its
plans for the company during the Detroit Motor Show on January
2001. In the meantime, the company's founder is hiding in Sudan
after the collapse of the company in June 1999.

According to the Friday issue of the Herald Sun, Daewoo has
accumulated debt of $A19 billion because of decreasing sales and
a rise in inquiries regarding warranties and automobile parts.

Meanwhile prosecutors were hoping to find Daewoo founder Kim Woo
Chong to face charges of mismanagement of corporate funds,
Australian Financial Review reported on Friday.


SEROME TECHNOLOGY:  May Declare Losses
--------------------------------------  
Serome Technology Inc. will most likely lose money this year
because it cannot make profit on the existing number of
subscribers.

In 2001, the company is predicted to lose as much as 20 billion
won despite the quadrupling of sales to 50 billion won. The
Dialpad service has 16 million users, International Herald
Tribune reported on Friday.


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

BESCORP INDUSTRIES:  Turned Over to New Firm
--------------------------------------------
Pengurusan Danaharta Nasional Bhd. Has received a proposed
restructuring plan from Bescorp Industries Bhd. involving a
transfer to a new investment holding company, according to the
Wednesday edition of Extel Company News.

The holding company, Newco, will acquire Hua Yang Development Sdn
Bhd ("HYD") and its 16 subsidiaries for about M$175,805,000.
Consideration will be satisfied by an issue of about 132,337,500
new Newco shares of M$1 at M$1.20 per share ND M$17m Red
unsecured loan stocks ("RULS") with 17m detachable warrants in
Newco. Every 1,000 existing shares in the Company will be
exchanged for one Newco share.

The vendors of HYD will distribute 1.881m Newco shares and 3.8m
Newco warrants to existing shareholders of the Company at no
cost. The basis for the distribution will be 99 Newco shares
together with 200 Newco warrants for every 1,000 Company shares.

The vendors of HYD will make cash payment of M$40.005m to the
unsecured creditors of the Company as part settlement of the
liabilities of the Company.

Newco will issue M$23 RULS with 23m detachable warrants to the
unsecured creditors of the Company as additional settlement of
the liabilities of the Company.

It is further proposed that the listing of the Company will be
transferred to Newco.


TENAGA NASIONAL: Prefers Managed Market
--------------------------------------------
Tenaga Nasional Bhd., a national power producer, prefers the
"managed market" over the "pool market" because the company can
give a guarantee to buy a certain amount of power from several
power producers rather than choosing all from the lowest bidder.

Fuad Jaafar, Tenaga Nasional president, said, "if we don't give
any guarantee, no entrepreneurs are going to spend millions of
ringgit and invest in building power plants," Asia Pulse reported
on Friday.

If this is implemented, the government will not rush some of the
restructuring activities like the establishment of a pool market.

Tenaga says it will need time to dispose of its power generating
assets.


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

VICTORIAS MILLING:  Alternative Rehab Plan Submitted
----------------------------------------------------
Kest Quatermain Venture Capital Partners Ltd. (KQVCPL) is pushing
its third alternative rehabilitation plan, paving the way for the
payment of the entire loan principal and accrued interest on
Victorias Milling Company's P6.5 billion debt to creditor banks
despite questions raised by THE sugar-miller's management
committee.

The plan includes a loan of $153 million from General Electric
Corp. (GE Capital) intended for the creditor banks for their
respective loan exposure, which will mature in 10 years including
accrued interest. An additional P400 million will be extended to
settle VMC's obligations to employees and additional working
capital, Business World reported on Friday.

In return, creditor banks will issue a standby letter of credit
in favor of GE Capital, equivalent to 108.5 percent of its
claims. VMC will provide for a sinking fund and mortgage trust
indenture on all assets of VMC. KQVCPL will receive a fee of 50
percent discount on the principal and accrued interest to be paid
in seven-year period.

VMC chief financial officer Romeo L. Hermoso, in opposition to
the plan, said it will only benefit the banks because it will
clear nonperforming loans, enhancing valuation and related loan
loss provision.

For his part VMC management committee vice-chairman Gerardo
Anonas believes that KQVCPL's proposal merely converts VMC's debt
to dollars and GE Capital will not have infusion but rather
having foreign banks confirm VMC's creditors' standby letters of
credit.

Anonas fears that GE Capital will draw standby letters of credit
and they will be back to square one after one year.


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

MESSER:  Sells Gas Plants for HK$11.9B
--------------------------------------
Messer Griesham's gas plant in Jurong, Singapore, will be sold
for HK$11.9 billion to Allianz Capital Partners (the private
equity arm of German insurance giant Allianz) and Goldman Sachs
Funds.

The two financial institutions will buy the 66.6 percent stake
held by Aventis in Messer Griesham to deconsolidate the company
and reduce debt, the South China Post reported on Monday.

Messer is a worldwide market leader in industrial gases, which
reported sales worth 1.7 billion euros in 1999, but said price
pressures in South America, Germany and parts of Asia "had a
negative effect on profits in 1999". The Messer family will still
hold 3.3 percent of the company and welcomed the "necessary
restructuring."

Aventis, in a statement, said, "specific restructuring measures
will allow the company to concentrate on lucrative and profitable
markets".


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

BAN CHANG GROUP:  Creditors Want Rehab Plan Revised
---------------------------------------------------
Creditors of Ban Chang Group want to introduce amendments in the
rehabilitation plan prepared by Asian Capital & Consultants Co.,
which will delay approval, scheduled for Thursday of next week.

Sarayuth Kauphaichanon, executive director of Asian Capital &
Consultant, said creditors want a provision allowing them to sue
guarantors. Under the existing plan they cannot sue the
guarantors because the company is incapable of making repayments,
the Bangkok Post reported on Friday.

Originally they did not lobby creditors for approval of the plan
but now they will discuss changes with them and gauge whether
they will vote in favor, the executive director said.

The rehabilitation plan would include partial debt forgiveness, a
capital reduction followed by an increase, debt-equity
conversion, repayments by asset transfers and debt-repayment
rescheduling.

After debt forgiveness, the remaining long-term debt totalling
260 million baht would be gradually repaid over 7 to 10 years.

Kauphaichanon proposed that the property development group would
need to repay only 1 percent of its guarantees to its
subsidiaries. The guarantees totaled 1.8 billion baht.


BANGKOK LAND:  Forges Agreement with Creditors
----------------------------------------------
Bangkok Land has forged an agreement with creditors regarding the
repayment of $US500 million and hopes to be profitable this year.

The company was hit by the Asian economic crisis during the late
1990s, forcing it to borrow some $US1 billion from abroad.

Kanjanapas family founded Bangkok Land and still has some
holdings in the company, according to the Friday edition of the
Australian Financial Review.


NATIONAL FERTILIZER:  Gov't. Aid Needed to Foil Plant Shutdown
--------------------------------------------------------------
National Fertilizer Plc. has asked the Bank for Agriculture and
Agricultural Cooperatives (BAAC) for financial assistance in an
effort to stop the shut down of its Bt10billion fertilizer
factory, according to the Friday issue of the Nation.

Cherdpong Siriwit, NFC chairman, said BAAC has less than a 3
percent stake in the company and asked that it increased this
holding. But BAAC has already made it clear it will not do so
without the financial assistance needed. The bank gave the
company until March to raise the additional Bt2billion working
capital, the Bangkok Post reported on Friday.

The chairman said NFC will sell some of its assets, such as its
majority stake in Rayong Port Co.

In related developments, Kamolchai Patrodom (president and chief
executive) has received an offer head Thai Petrochemical Industry
(TPI) but has agreed to stay on for another year to help the firm
ease its liquidity problem.

Cherdpong cautioned that he would not continue after the
expiration of his term if the government does not extend the
much-needed assistance.

Meanwhile the shutdown will be a blow to farmers because of the
fertilizer shortage it will create.  NFC holds 20 percent of the
market.


SIAM CITY BANK: Merges with Bangkok Metropolitan Bank
-----------------------------------------------------
Ailing banks Siam City Bank (SCIB) and Bangkok Metropolitan Bank
(BMB), will solve their prolonged problems by merging with
combine assets of Bt70 billion in the first quarter of the year
in a bid to restore local and foreign confidence in the Thai
financial system, the Nation reported on Monday.

The new bank will carry some Bt300 billion in "bad assets" from
both SCIB and BMB taken out from the asset management company.

National Pension Fund and the National Provident Fund will join
the majority owners while the Financial Institutions Development
Fund will hold less than 50 percent in the new bank.

Somchainuk Engtrakul, Finance Ministry permanent secretary, said
the plan finally wraps up the prolonged problem of the country's
troubled banks.


THAI HEAT EXCHANGE:  Files Rehab Plan on Dec. 21
------------------------------------------------
Thai Heat Exchange submitted to the bankruptcy court its
rehabilitation plan on December 21, 2000.

In a letter to the Stock Exchange of Thailand dated 05-Jan-2001,
the court scheduled the hearing of the petition for 9 a.m. on
January 16, 2001.



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

Troubled Company Reporter -- Asia Pacific is a daily
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Copyright 2001.  All rights reserved.  ISSN: 1520-9482.

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                      *** End of Transmission ***