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                     A S I A   P A C I F I C

           Monday, January 22, 2001, Vol. 4, No. 15

                            Headlines



A U S T R A L I A

COLROK MINING:  Props Up Mining Operations
LIBERTYONE:  Faces Ruin This Year
RANCHER ENTERPRISE:  Fails to Pay Debts
REAL MEDIA:  Goes into Voluntary Administration


C H I N A  &  H O N G  K O N G

GUANGNAN HOLDINGS: Disposes of 1.57 B Shares
SINA.COM:  Posts US$5.34M Net Loss Q3 2000


I N D O N E S I A

CITY BUS:  To Reduce Workforce
BANK NEGARA:  Posts US$133M Loss


J A P A N

BRIDGESTONE CORP.:  President Resigns


K O R E A

HYUNDAI ELECTRONICS:  Seeks Debt Reduction


M A L A Y S I A

SUNWAY GROUP:  Given July Deadline to Repay Debt
UNITED ENGINEERING:  Buys Renong Assets


P H I L I P P I N E S

RUBBERWORLD:  Sells P974M Property to Pay Debt


T H A I L A N D

BANGKOK METROPOLITAN:  Gov't Studies Merger with SCIB
STA GROUP:  Court Approves Bt22B Debt Restructuring Plan
THAI PETROCHEMICAL:  Court Grants Founder's Request


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

COLROK MINING:  Props Up Mining Operations
------------------------------------------
Colrok Mining, a subsidiary of German Thyssen Mining Group, has
been propping up the operations of its Southlands Colliery in the
New South Wales Hunter Valley mine despite declaring voluntary
administration. Colrok owes $68 million in debt to more than
1,700 creditors, including employees, ABC News On Line reported
on Thursday.

David Leigh, Colrock administrator, said the even though the
parent company had been pouring in money to the troubled mining
firm for some months, they will be treated like the other
creditors if they want to participate in the process.


LIBERTYONE:  Faces Ruin This Year
---------------------------------
LibertyOne, an Australian Internet company, may face ruin in
January 2001 because it lacks management discipline. Nick
Whitlam, LibertyOne chairman, said the company had a market value
on the Australian Stock Exchange of around $A1 billion in April
2000 and is now under voluntary administration, according to the
Sunday issue of the Sunday Telegraph. Zivo, a division of
LibertyOne, is reported to have been sold for $A50,000.


RANCHER ENTERPRISE:  Fails to Pay Debts
---------------------------------------
Rancher Enterprise, a Western Australian property developer, has
failed to repay loans worth $A21 million secured by property
estimated to be worth $A16 million. Lawrie Ferris and John
Manton, owners of Rancher Enterprise, together were suspected by
liquidator Tony Douglas-Brown to have engaged in corrupt
transactions that led to the firm's closure, the Western
Australia reported on Saturday.

Properties are now being auctioned to make up for the $A5 million
shortfall. The auctions have been organized by Blackburne &
Dixon, Graeme Grubb Finance and First Charter.

Some 200 retirees lost money because of their investment in
Rancher Enterprise.


REAL MEDIA:  Goes into Voluntary Administration
-----------------------------------------------
Real Media Australia (RMA) went into voluntary administration
after failing to pay creditors more than $A600,000.

Paul Billingham, administrator of Real Media Australia, said the
move came out when its American parent company pulled out from
the Australian joint venture, according to the Saturday edition
of the Sydney Morning Herald.


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

GUANGNAN HOLDINGS: Disposes of 1.57 B Shares
--------------------------------------------
Gunangdong Enterprises (Holdings) (GDE) is planning to sell 1.57
billion shares of Guangnan Holdings, a supermarket operator, at a
50 percent discount. Guangnan had insufficient shares in the
hands of the public when its parent company, GDE, underwent a
debt restructuring process, so its trading was suspended on
Tuesday.

As underwriter of Guangnan's rights issue, GDE increased its
interest to 93.25 percent from 57.05 percent because the issue
was only 2.49 percent subscribed. So that Guangnan can resume
trading, GDE will need to place 18.25 percent of its interest to
top up the public float to 25 percent and meet regulatory
requirements, according to the Friday edition of the South China
Morning Post.

GDE was planning to sell its 18.25 percent stake in Guangnan at
5HK cents a share to a third party. In November last year,
Guangnan launched a 17-for-two rights issue at 10HK cents a share
to raise HK$773 million to repay part of its HK$3.17 billion
debt.


SINA.COM:  Posts US$5.34M Net Loss Q3 2000
------------------------------------------
Sina.com posted a net loss of US$5.34 million for the last
quarter of last year and the revenue growth, quarter to quarter,
was US$7.62 million 6.55 percent slower.

Advertising revenue was up 6.7 percent to US$6.69 million, but
grew slower than the 27.75 percent rate in the previous quarter
when total turnover jumped 24.34 percent to US$7.15 million,
South China Morning Post reported on Friday.

Chief operating officer Daniel Mao said the company expected the
income in the first half this year to drop because of
consolidation in global online advertising. Mao said they told
analysts that advertising revenue would drop by 10 to 15 percent
for this quarter.

Sina.com was the first China portal to announce a revenue
decline.


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

CITY BUS:  To Reduce Workforce
------------------------------
City Bus Company (PPD), a state run bus company, would rather
reduce its workforce because of the losses it has incurred than
be liquidated, the Jakarta Post reported on Saturday.

Agum Gumelar, the Minister of Transportation and
Telecommunication, said they would establish an ideal ratio
between the number of employees to the number of buses. The ideal
ratio is five employees for every bus.

The minister said that because of the limited financial
capability of the government, it could no longer cover the
losses. These losses were believed to be due to low bus fares.
Since it is owned by the government, PPD is obliged to provide
cheap transportation.

PPD president Anton Sudarto admitted that the company's
restructuring did not stop the losses from occurring.

The government extended Rp105 billion between 1999 and September
2000 to PPD because of heavy losses. In 1998, the company was
given Rp 42 billion to cover its debt and operational the cost
which amounted to Rp 35 billion.

In 1985, the company had losses of Rp6.4 billion, in 1995 Rp28
billion and in the first quarter of last year Rp20.7 billion.

PPD, which has 5,560 employees, is planning to increase its bus
fare and add 550 more buses to reach the ideal ratio.


BANK NEGARA:  Posts US$133M Loss
--------------------------------
Bank Negara Indonesia (BNI) posted a Rp1.2 trillion (US$133.5
million) loss last year, a decrease from the 1999 record of Rp13
trillion and 1998's Rp43 trillion, according to the Thursday
edition of Asia Pulse.

Eko Budiwiyono, a bank director, said the introduction of a
recapitalization fund of Rp30 trillion in April and Rp31.8
trillion in June last year helped in improving the bank's
performance.


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

BRIDGESTONE CORP.:  President Resigns
-------------------------------------
Yoichiro Kaizaki, Bridgestone Corp. president, chairman and chief
executive, has resigned from his post in order to restore the
company's tarnished image due to the costly and damaging recall.

Shigeo Watanabe, senior managing director, will be his
replacement. He said, "The most important issue for the
Bridgestone group right now is restoration of our brand and
regaining trust."

Watanabe will formally take up his new post following approval
expected at a March 29 shareholders' meeting, Autoasia Online
reported on Wednesday.

For his part Kaizaki said, "I decided on this move to strengthen
our management in a rapidly changing global environment and to
win back the trust of our customers and shareholders."

Bridgestone's tires have been blamed for some 150 traffic deaths
in the U.S. and have destroyed the company's relationship with
Ford, whose Explorer model uses its tires.

A total of 6.5 milllion tires have been recalled, slashing
Bridgestone's profit estimate by 80 percent for this year.


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

HYUNDAI ELECTRONICS:  Seeks Debt Reduction
------------------------------------------  
Hyundai Electronics Industries Co. (HEI) expects the Korea
Development Bank (KDB), owned by the government, to buy 2.9
trillion won of maturing corporate bonds or 81 percent while the
remaining 700 billion won or 19 percent will be financed by the
company, the Asian Wall Street Journal reported on Thursday.

Park Chong Sup, chief executive of Hyundai Electronics, said, "In
such a demanding situation, we believe that KDB's quick
underwriting of the company's maturing corporate bonds served as
a turning point for resolving the current liquidity crunch."

Hyundai Electronics will slash 23 percent of its staff and
dispose of assets to reduce the company's debt to 7.8 trillion
won.

Through the disposal of assets such as real estate and
securities, HEI can raise one trillion won, while spinning off
non-semiconductor operations will displace some 5,000 workers
from a total 22,000 workers.


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

SUNWAY GROUP:  Given July Deadline to Repay Debt
------------------------------------------------
The Sunway Group may have to sell its entire 50 percent interest
in its quarry and ready-mixed businesses to settle its RM230
million advance loan that it obtained in 1998 because of the July
2001 deadline set by creditors.

Sunway Building Technology Bhd. (Suntech) and Pioneer
International Holdings Pty Ltd., a subsidiary of the Hanson
Group, had a joint venture agreement to consolidate their ready-
mix concrete business under a new company, Pioneer Quarry
Services (M) Sdn Bhd (PQSM), the Edge Daily reported on Thursday.

Pioneer International paid RM180 million and RM42.75 million cash
to Sunway and Suntech respectively for the 50 percent stake in
SPQ and PQSM. Pioneer International also agreed to extend a loan
advance of about RM230 million to Sunway and Suntech.

Sunway and Suntech were given two options. First, to repay the
loan in three years with interest and second, that Pioneer
International will call an option to purchase their entire
shareholdings in SPQ and PQSM at the end of the term.

Sunway was embarking a plan to reduce its long-term borrowings of
RM460.37 million as of September 30, 2000, and a part was
divesting its entire interest in the quarry and ready-mixed
businesses. The early divestment of its interest in the two
companies was a way to avoid interest payments rather than to
raise funds to pay Pioneer International.

Analysts believe that the company can save up to RM5 million if
it pays the loan early.


UNITED ENGINEERING:  Buys Renong Assets
---------------------------------------
United Engineers Bhd. (UEM) has agreed to purchase the entire
equity of Fleet Group from Renong Bhd. for RM2.9 billion and
other assets for a total of RM5.3 billion.

The other Renong assets to be acquired are its 50.1 percent stake
in Park May for RM16mil, a 38.6 percent stake in Crest Petroleum
Bhd for RM74.52mil, an 80 percent stake in Amra Resources Sdn Bhd
(the holding company for Prolink Development Sdn Bhd) for
RM1.29bil, and the rights, title, benefit and interest to and
under the redeemable subordinated loan by Prolink to Renong at
its book value of RM995.6mil as at Nov 17 last year, the Star On
Line reported on Friday.

Hatibudi Nominees (Temptatan) Sdn. Bhd., a subsidiary of Renong,
will sell to UEM its equity interest in Time Engineering Bhd. for
RM3.75 per share for RM47.43 million with the issuance of 3-year
irredeemable convertible unsecured loan stocks.

UEM will assume the liability of the Renong SPV bonds for the
project Lebuhraya Utara-Selatan Bhd. (PLUS) issued by Renong Debt
Management Sdn. Bhd. valued at RM3.58 billion as at November 17.

The balance of RM1.2bil in accreted value of the Renong SPV bonds
as at Nov 17 will be retained by Renong.


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

RUBBERWORLD:  Sells P974M Property to Pay Debt
----------------------------------------------
Rubberworld Inc., an athletic shoes manufacturer, will sell its
9.5-hectare property in Quezon City to Gigoso Farms Inc. for P974
million with the consent of the Securities and Exchange
Commission (SEC), in order to pay its P1.53 billion debt.

According to SEC documents, Gigoso outbid tobacco tycoon Lucio
Tan by P74 million to be paid in three installments, the
Philippine Daily Inquirer reported on Friday.

Rubberworld filed for suspension of payments on its debt in 1994
then partially shut down operations because of the economic
problems it suffered beginning in 1991. It was later put up for
liquidation.

Gigoso offered to pay a down payment of 50 percent upon the
signing of the deed of sale but must include the unused plant.  
The balance of 25 percent will be made if debris and blockades
and settlers are relocated. The final 25 percent will be paid
during the signing of the deed of absolute sale of the
Rubberworld assets.

The SEC considers the Gigoso offer to be the best among the
bidders.

Last month, the liquidator and counsels of Rubberworld and the
buyer agreed to a purchase price of P9,500 per square meter with
the approval of the SEC.

An SEC official also said that the Rubberworld liquidator has
been negotiating for the reduction of the company's indebtedness
with existing creditors.


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

BANGKOK METROPOLITAN:  Gov't Studies Merger with SCIB
-----------------------------------------------------
The new Thai government wants to study the merger of Bangkok
Metropolitan Bank (BMB) and Siam City Bank (SCIB) first rather
than disposing of the two ailing banks.

Incoming Prime Minister Thaksin Shinawatra said, "It's too early
to give details on how to implement it, but I can say we will try
to save the two banks".

The Financial Institutions Development Fund (FIDF) and the
Finance Ministry have made several attempts to sell the banks to
foreign financial institutions and had all but given up trying,
Reuters reported on Thursday.

Employees from the two banks opposed the merger plans because it
might lead to branch closures and staff cuts, said BMB union
president Pairoj Boonyasitsopon.

Thaksin plans to convert the two banks to "banks for national
development."

BMB and SCIB were rescued by the Thai government because of the
financial meltdown that hit Asia in 1997 and 1998. Shares trading
in BMB have been suspended since January 23, 1998, while that of
SCIB have been suspended since February 5, 1998.


STA GROUP:  Court Approves Bt22B Debt Restructuring Plan
--------------------------------------------------------
STA Group is optimistic for growth this year after a court
approved its BT22 billion debt-restructuring plan. President and
chief executive Kamol Poolsawat said the plan is project a growth
of 33 percent or Bt1.6 billion as compared to last year and
earnings before interest and taxes of Bt400 million and Bt500
million next year, according to the Friday issue of the Nation.

Poolsawat said the production rate of its main procut, particle
boards will be increased from 75 to 80 percent daily capacity.

STA Group has brought five subsidiaries under the rehabilitation
plan:  STA Group (1993) Plc., STA Particle Products Co., STA MDF
Co., STA Furniture Group Co. and STA Para Plywood Co.

New funds will be brought in to reduce its Bt22 billion debt to
Bt10.6 billion or even Bt4 billion, equivalent to 50 percent of
the total debt. Some Bt1.55 billion in debt will be converted
into new equity and the repayment schedule for the remaining
Bt9.05 billion in debt will be stretched over a 15-year period.

The debt restructuring will result in diluting the Vilaipun
family's holdings from 60 to 6 percent and creditors will convert
loan into equity, eventually controlling 94 percent.

There will be no changes in the company's management while the
creditor committee looks into the financial plan.

The major creditors of STA Group include Sukhumvit Asset
Management Co., which is Krung Thai Bank's asset-management arm;
Thai Farmers Bank; Bangkok Metropolitan Bank; and Chanthaburi
Asset Management. No foreign lenders hold company debt.

Trithip Sukhasapha, a partner of Deloitte Touche Tohmatsu's
Corporate Finance and Restructuring Services team and the
financial adviser to STA Group, said the company has potential to
grow now, due to its good management, quality products and strong
marketing.

Kamol aid the company will concentrate on its core businesses,
including STA Particle Products, STA MDF and the group's parent
company, STA Group (1993).


THAI PETROCHEMICAL:  Court Grants Founder's Request
---------------------------------------------------
Thailand's Bankruptcy Court has granted Thai Petrochemical
Industry (TPI) former chief executive Prachai Leophairatana's
request to appeal to the Supreme Court, questioning the
restructuring plan and freeze its implementation while the appeal
is still being deliberated, according to the Thursday issue of
the Asian Wall Street Journal.

In reaction to the court's ruling, Peter Gothard, a director of
Effective Planners and TPI's advisor, said, "Our legal advice is
that it doesn't affect current implementation of the plan".

Under the four-year rehabilitation plan, creditors intend to swap
$750 million in unpaid interest for a 75 percent stake in the
expanded equity of the company. They expect to generate another
$1 billion from TPI's operating revenue and some $200 million
from the sale of non-core assets, leaving the company to
refinance $1.8 billion still outstanding at the end of the four
years.

Mr. Prachai will elevate to the Supreme Court key features in the
rehabilitation plan such as the debt-equity swap, a capital
increase and any sale of non-core assets on the grounds that it
will be difficult to reverse such actions once they are
implemented, according to his lawyer, Chavalit Uttasart. Chavalit
will also question the changes in TPI's management as well as Mr.
Prachai's suspension.

Effective Planners and TPI's creditors are concerned about how
long the appeal will take because creditors have already been
cautious about issuing new capital as long as high oil prices
have left TPI short of working capital.

Mr. Prachai's advisers have also made clear he hopes the advent
of a new government led by business tycoon Thaksin Shinawatra may
also create a political climate more sympathetic to his case and
less receptive to the concerns of foreign creditors.



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
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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.

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