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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

            Tuesday, January 23, 2001, Vol. 4, No. 16

                            Headlines


A U S T R A L I A

GRAINS BOARD: Government Puzzled Over Collapse
INFOSENTIALS: Sends Staff Home
MYPRICE:  Excessive Fees Force Shutdown
REAL MEDIA:  Sells Technology Assets
SYDNEY STEEL:  Duferco Group Pulls Out


I N D O N E S I A

PT BUKITJONGGOL:  IBRA Approves Debt Restructuring Plan
PT DHARMALA SAKTI SEJAHTERA:  IBRA Charges Owner


J A P A N

DAIHYAKU LIFE:  Transfers Business to Manulife Co.
NIIGATA BANK:  Police Raid Bank Headquarters
NAGOYA RAILROAD:  Disbands Three Subsidiaries


K O R E A

DAEWOO MOTOR:  Sells Training Center to Pay Debts  
SAMSUNG INDUSTRIES:  Posts 331B Won in Losses


M A L A Y S I A

MALAYSIAN AIRLINES:  Securities Commission Approves Sale


P H I L I P P I N E S

BAYAN TELECOMMUNICATIONS:  Parent Firm Supports
PHIL. CONSTRUCTION: Liquidates Debts Before Selling
WESMONT INVESTMENT: Former Owners Charged With Fraud


T H A I L A N D

ASIA PULP:  Possible Default May Lead to NYSE Delisting
SUN TECH:  Court Grants Extension
THAI IRYO:  Assets Sold to Pay Workers
THAI TELEPHONE:  May Suffer Bt4.36B Loss


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

GRAINS BOARD: Government Puzzled Over Collapse
----------------------------------------------
New South Wales (NSW) Grains Board is now being investigated
for losses amounting to $A100 million. The Public Accounts
Committee (PAC) of the NSW Parliament will summon its directors
and management to explain how they accumulated the huge losses.

As early as March of last year, the directors knew that the
Grains Board had a $A6 million loss but did not inform the PAC,
according to the Tuesday edition of the Australian Financial
Review.

The government seemed to have failed to scrutinize agencies
with losses including the NSW.


INFOSENTIALS: Sends Staff Home
------------------------------
Infosentials has left employees on unpaid leave because of cash
flow problems. Trading of its shares has also been suspended.

Administrators have already been appointed to make sure
collections from the indebted business would be safeguarded. It
has a total debt of $A4 million.

Last year had a revenue of $A11.7 million but lost $A9.4
million. Some 350 creditors of Infosentials will meet on
January 25.


MYPRICE:  Excessive Fees Force Shutdown
---------------------------------------
MyPrice, an Australian Internet company, was forced to shut
down last December because of the excessive monthly fees by its
U.S. parent company Priceline.com, The Australian reported
Monday last week.

A case is being filed against Priceline because a number of
MyPrice investors believe that the company can survive
considering the quality of its technological platform.


REAL MEDIA:  Sells Technology Assets
------------------------------------
Real Media Australia, an Internet advertising company, will
dispose of its business and technology assets at a price
creditors believed to be worth $600,000.

Paul Billingham, of accountants Grant Thornton, said Wishlist,
Austar, Autobytel and Digital One Web sites made offers
signifying interest, according to the Friday issue of the
Sydney Morning Herald.

He said the early appointment of an administrator would be an
"absolute" factor in negotiating for the sale.

Real Media controlling interest was held by Brendon Cropper and
David Purcell who were also founders of Media Fusion.

Buy.com.au, online broker eloan, Web designers Oven Digital,
Rare Medium and Razorfish, currency venture beenz and
AllAdvantage.com are other casualties.


SYDNEY STEEL:  Duferco Group Pulls Out
--------------------------------------
Duferco Group of Lugano, Switzerland has withdrawn its interest
purchasing Sydney Steel Corp., affecting more than 175 workers.

Sydney Steel was acquired to supply slab steel to Duferco's
recently acquired operation in Pennsylvania, the Globe and Mail
reported on Friday.

Nova Scotia Industry Minister Gordon Balser Duferco originally
signed an agreement last June to purchase the troubled company
for $17 million and was extended to January 18 but the steel
industry was in a downturn causing the collapse. The government
believes that prolonging the negotiations will lead to nothing.

This is the fourth time in seven years that the company was
negotiated for sale but did not materialize especially with the
cancellation of the new power contract with Nova Scotia Power.

Mr. Balser said that the mill would now be liquidated.

Since Duferco was not able to push through the takeover, the
government is to begin the process of getting out of the steel
business.


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

PT BUKITJONGGOL:  IBRA Approves Debt Restructuring Plan
-------------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) and PT Bukit
Jonggol, a real estate developer, have agreed on a debt-
restructuring plan for its 1 trillion rupiah debt.

The plan calls for Bukit Jonggol to pay IBRA Rp 20 billion in
cash in one month upon signing of the memorandum of
understanding (MOU). It will also transfer Rp80 billion into an
escrow account to be used as working capital later. It also
calls for the surrender of 10,000 hectares of land as
collateral to IBRA in the next 12 months, according to the
Wednesday edition of the Jakarta Post.

Bukit Jonggol is owned by Bambang Trihatmodjo, the son of
former President Soeharto; Usman Atmadja, the founder of Bank
Danamon; and the Salim Group.


PT DHARMALA SAKTI SEJAHTERA:  IBRA Charges Owner
------------------------------------------------  
The Indonesian Bank Restructuring Agency (IBRA) will file
charges against Suyanto Gondoksumo, owner of PT Dharmala Sakti
Sejahtera, when the group purchased a 40 percent stake in an
insurance firm.

Samosir, the partner of IBRA's legal representative Bob
Nasution, will have to meet first the other parties before
taking legal measures against Suyanto, according to the
Wednesday issue of the Jakarta Post.

IBRA and 18 creditors filed bankruptcy against Dharmala at the
central Jakarta Commercial Court last year.

Through an auction, the court sold Dharmala's 40 percent stake
in the insurance firm PT Asuransi Jiwa Indonesia (AJMI) to its
parent company Manulife Manufacturers Life Insurance Co. of
Canada for Rp 170 billion (US$17.8 million).

IBRA should have received Rp 56 billion in proceeds from the
sales, but the auction was disputed by West Samoan firm Roman
Gold Assets Limited.

Other creditors of Dharmala include Standard Chartered Bank
with some Rp 167 billion in loans, Deutsche Bank with Rp 15.8
billion and ABN AMRO Bank with Rp 85 billion.


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

DAIHYAKU LIFE:  Transfers Business to Manulife Co.
--------------------------------------------------
Daihyaku Mutual Life Insurance Co. will transfer its operations
to Manulife Century Life Insurance Co. since it is suffering a
capital deficit of 145 billion yen. The capital deficit will be
covered by the Life Insurance Policyholders Protection Corp.,
the industry's safety-net body.

On April 2, Manulife Century, a subsidiary of Canada-based
Manulife Financial Corp., is scheduled to take over Daihyaku's
operations worth 147 billion yen, the Japan Times On Line
reported on Saturday.

The protection corporation, an industry safety net, has a
capital base of 560 billion yen and can apply for an additional
400 billion yen in public funds.

When a corporation has a negative deficit, the protection
corporation must come in as in the case of Taisho Life
Insurance Co. and Chiyoda Mutual Life Insurance Co., which went
bankrupt in August and October.

In this case, payouts on insurance contracts will begin on
April 2 when the transfer to Manulife Century shall be
completed.

Promised yields went as high as 5.5 percent during the asset
bubble economy but were cut to 1 percent after January 31 of
this year.

Daihyaku Mutual had a total negative deficit of 320 billion yen
as of end of September. Decreases in payouts amounted to 292
billion yen.


NIIGATA BANK:  Police Raid Bank Headquarters
--------------------------------------------
Police raided the headquarters of Niigata Chuo Bank and the
home of former bank President Ryutaro Omori in Tokyo for
evidence in illicit lending practices stated in the Commercial
Code that led to the bank's failure in October 1999.

The bank extended loans to theme park and golf course
development projects starting in May 1989 with Omori as
president. Additonal loans were extended in order to cover-up
the business slump, Jiji Press English News Service reported on
Thursday.

The bank extended 40.9 billion yen to three theme parks and
93.5 billion yen to 12 golf courses when it declared
bankruptcy. Last year, its operations were divided and given to
six regional banks.


NAGOYA RAILROAD:  Disbands Three Subsidiaries
---------------------------------------------
Nagoya Railroad Co. will disband three loss-making subsidiaries
in Hong Kong and the United States because of the total losses
of 2.3 billion yen.

The companies are the Hong Kong Meitetsu Co., California-based
real estate company MTK Corp. and Saipan-based Commonwealth
Marine Leisure Corp, the Japan Times On Line reported on
Saturday.

Since there is a need to revise its current business year
forecast ending March 31, Nagoya wanted to manage its losses.

The Hong-Kong based subsidiary became unnecessary because it
already had its own merchandising procurement division. It was
established in 1968.

MTK's mainstay shop-leasing business has been slumping, while
Commonwealth Marine Leisure has been suffering a decline in
revenues due to the diversification of leisure.

Last month, Nagoya Railroad expected to post a 44.5 percent
year-on-year rise in consolidated net profits to 2.5 billion
yen. Revenues were expected to drop 4.8 percent to 810 billion
yen.


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

DAEWOO MOTOR:  Sells Training Center to Pay Debts  
-------------------------------------------------
Daewoo Motor will sell its Worthing Tehnical Center in Britain
as part of its restructuring plan after being given approval by
a British court for the provisional liquidation.

This will be the first overseas operations to be sold off or
liquidated after the company went bankrupt in 1999, Agence
France Presse reported on Saturday.

The court appointed two experts from consulting firm KPMG
International as trustees to the research center.

The two will assist Daewoo Motor chairman Lee Jong-Dae in
negotiating to sell off the research center.

In 1994 Daewoo Motor bought Worthing Technical Center from IAD,
an automobile engineering company, with 500 employees.


SAMSUNG INDUSTRIES:  Posts 331B Won in Losses
---------------------------------------------
Samsung Heavy Industries Co. posted a 331.5 billion won
ordinary loss last year mainly because of foreign exchange
losses brought about by the depreciating value of the won.

The company also suffered losses when it liquidated its
uncollected bills and started selling ofs shares in the Samsung
Group, according to the Friday edition of the Korea Herald.


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

MALAYSIAN AIRLINES:  Securities Commission Approves Sale
--------------------------------------------------------
The Securities Commission (SC) approved on January 17 the sale
of a 29.09 percent stake of Naluri Bhd. in Malaysian AirLines
(MAS) to the Minister of Finance (MOF).

The funds obtained will be used to revitalize the business'
performance, the Edge Daily reported on Saturday.

MOF intends to buy 224 million of Naluri shares for RM1.79
billion, increasing its stake to 49.19 percent.

The government agency had also obtained a waiver from the SC
and Foreign Investment Committee to waive the mandatory general
offer to acquire the remaining shares in MAS a provided in the
Malaysia Code and Take-overs and Mergers 1998.


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

BAYAN TELECOMMUNICATIONS:  Parent Firm Supports
-----------------------------------------------
Benpress Holdings Corp., holding company of Bayan
Telecommunications Corp. (BayanTel), will extend help to the
company but only within the context of "orderly debt
restructuring."

Benpres owns 66 percent of BayanTel through Bayan
Telecommunications Holdings Corp., Business World reported on
Friday.

Angel S. Ong, Benpress vice-president for finance said the
amount of support would still have to be discussed with
creditors in the next three to six months

BayanTel failed to pay $13.5 million interest on its seven-year
$200 million bond, which fell due on January 15. Its loans to
be restructured amounted to $500 million.

According to Standard & Poor's Bayantel's holding company,
Benpress, failed to extend funds to avoid default when the
payment fell due. Benpress has a P7.7 billion equity infusion
in BayanTel.

Ochie Gloria, BayanTel investor relations and financial
planning head of the company is waiting for Bank of America's
findings since it is acting as its financial adviser.

Meanwhile, Moody's Investors Service and S&P have downgraded
BayanTel's $200 million senior notes since it is the subject of
an ongoing debt-restructuring negotiation and hoped to be
finalized in the next six to 12 months.


PHIL. CONSTRUCTION: Liquidates Debts Before Selling
---------------------------------------------------
The Philippine National Construction Corp. (PNCC) will
liquidate its debts and pay its back taxes by selling the
government's 80 percent share in its construction and real
estate division before it can bid out its tollway franchise and
operations.
  
PMO chief privatization officer Renato Valdecantos said the
mover would enhance the value of the government's shares in
PNCC, Philippine Daily Inquirer reported on Friday.

He said the company had been shutting down its unprofitable
construction division and laying off redundant personnel as
part of cost cutting measures.

PNCC has P23 billion worth of booked and unbooked assets in
Mandaluyong, Bicutan and scattered all over the North and South
Luzon Expressways and a five-hectare property at the government
financial center along Roxas Boulevard.

If these properties are disposed, the funds will be used to
settle its unpair due to the Bureau of Internal Revenue
amounting to P1 Billion. The huge debts and dues were the
reasons why few investors were interested in its auction last
year. Only three submitted bids and the highest bidder was
rejected by the Asset Privatization Trust (APT).

The indicative price pegged by the APT was P7 billion in
contrast with an audit by Development Bank of the Philippines
and Punongbayan and Aurallo, who set the tollway operator's net
asset value at P2.6 billion.


WESMONT INVESTMENT: Former Owners Charged With Fraud
----------------------------------------------------
A Chinese depositor accused former Finance Secretary Edgardo
Espiritu and his son, John Anthony, for estafa in conspiracy
with other officials for conspiring to defraud the complainant
of P29 million to Westmont Investment Corp. Wincorp in
violation of Article 315 of the Revised Penal Code, the
Philippine Daily Inquirer reported on Friday.

Halbert Uy filed a complaint with the department of justice
(DOJ) also other officials including in the conspiracy from
Westmont Investment Corp. (Wincorp), United Overseas Bank of
the Philippines, Hottick Holdings Corp. and Powermerge Corp.

He is among the 2,200 Wincorp investors trying to recover
deposits and placements worth P7 billion.

Wesmont Bank branch manager, Lester Yu, convinced him to re-
lend his money as part of the P1.39 billion loan extended to
Hottick Holdings Corp. in 1997.

When Hottick failed to repay the loan, the newly formed
Powermerge Corp. assumed the rights but will not honor its
obligations.

Wincorp, Hottick and Powermerge conspired to make unviable Uy's
security for the obligation of payment for the loan.

Uy entrusted his money to Wincorp "to be lent to credit-worthy
borrowers and with the expectation that his money will be
returned to him at the stipulated date."


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

ASIA PULP:  Possible Default May Lead to NYSE Delisting
-------------------------------------------------------
Asia Pulp & Paper Co. may be delisted by the New York Stock
Exchange because of a possible default in high-yield bonds
worth $870 million, triggering a cross-default.

The company borrowed $10 billion from foreign lenders to
finance a rapid expansion in pulp and paper production in
Indonesia and China, according to the Friday issue of the Asian
Wall Street Journal.

The stock exchange usually gives a company six months to
improve its stock price to above $1 but there is no indication
that it can meet its debt obligation to its bondholders.

Lin Che Wei, an analyst at SG Securities, said the delisting
might trigger two APP notes with a face value of $870 million
to invoke option jeopardizing its debt restructuring of $3.1
billion coming due 2001.

The impact it will have on two of its subsidiaries remains
uncertain since some of APP's debts were issued by these units.
The two subsidiaries are PT Indah Kiat and PT Tjiwi Kimia.

As part of the debt exchange, APP has offered to pay investors
more than $200 million in cash in exchange for taking longer-
dated debt.


SUN TECH:  Court Grants Extension
---------------------------------
The Central Bankruptcy Court agreed to extend a deadline to
February 21 for the submission of the debt-restructuring plan
of Sun Tech Group (SUNTEC), the Nation reported on Friday.

Srisongkram Planner Co., plan administrator, made the request
in a statement to the Stock Exchange of Thailand.

The planner needs more time to workout the plan, which was
previously set to be submitted on January 22.


THAI IRYO:  Assets Sold to Pay Workers
--------------------------------------
Thai Iryo, a garment company, will auction its assets in order
to pay laid-off workers after receiving orders from the Legal
Execution Department to begin the process.

In October 15 of last year some 1,231 workers were unemployed
because the Thai Iryo factories were closed down because of
short of funds, the Bangkok Post reported on Thursday.

The Thanyaburi Labour Court ordered the firms to pay 40.3
million baht in compensation by Dec 22, plus 15 percent
interest a year.

Amporn Wongphayak, president of Thai Iryo Co's labour union,
said, "We can no longer wait for severance pay because all of
us have to eat and take care of our families. We contacted many
factories to find jobs for them."

Some 70 percent of the workers who lost their jobs were
accepted in the garment and electronic industries despite being
35 years old and above.

For his part Naree Chusri, the labor union's secretary-general,
disputed management's claim that it cannot pay compensation
because they have just opened a new garment business in the
Rangsit area.


THAI TELEPHONE:  May Suffer Bt4.36B Loss
----------------------------------------
Thai Telephone & Telecommunications (TT&T) may have suffered
Bt4.36 billion in losses last year and recommended that
investors sell shares of TT&T. Even though it has been
successful in its debt restructuring plans, it is still has to
pay huge concessionaire compensation to state and private
operators, according to the Friday issue of the Business Day.

Capital Nomura Securities (CNS) noted a decline in the number
of telephone lines installed from 5,476 in November to 4,053 in
December last year. As a result, its average revenues dropped
from 642 baht per number in November to 616 baht per number in
December.



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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