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                        A S I A   P A C I F I C

                 Thursday, February 1, 2001, Vol. 4, No. 23

                               Headlines


A U S T R A L I A

COLES MYER:  Considers Big Write down
ONE.TEL:  Reports $138M Loss


C H I N A  &  H O N G  K O N G

SINA.COM: Revenue Dips 20 Percent


I N D O N E S I A

PT SURYA SEMESTA:  Posts Rp43.9B
SINAR MAS:  Pledges Assets


J A P A N

MATSUZAKAYA:  Closes Yokkaichi Outlet
YAMAZAKI BAKING:  Posts 76.1B Loss


K O R E A

HYUNDAI ASAN:  Hyundai Group Slashes Funds
HYUNDAI ENGINEERING:  Creditors Provide 300B Won in New Loans
SSANGYONG CEMENT:  Hands 200 Billion Won Debt to Yongpyong Resort


M A L A Y S I A

MBF FINANCE:  AMMB Merger Optimistic


T H A I L A N D

SRIVARA ESTATE:  Restructures Bt10.4B Debts


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

COLES MYER:  Considers Big Write down
-------------------------------------
Coles Myer is considering between $70 million and $100 million in
write downs after a detailed review of its two subsidiaries, Myer
Grace and Target, revealed stocks remained unsold for two years.

A stock write down will affect the share price and place pressure
on the group's profit, according to the Wednesday issue of the
Sydney Morning Herald.

Before the write down was discovered earnings after tax were
boosted by 8.1 percent to $313 million in the half year of 2000
and profits increased by 9.3 percent to $483 million in the full
year to July 2000.

Annual group profit, after taking the stock write downs into
account, could be less than $450 million.


ONE.TEL:  Reports $138M Loss
----------------------------
One.Tel is expecting to post losses of $138 million before
interest and tax for the six months to December 31 last year. The
forecasted operating loss after tax for the full year was $195
million, according to the Tuesday edition of Fairfax I.T.

Observers believe that One.Tel will have a cash drain of $170.7
million, leaving a cash balance of $101 million.

The board of directors may have to shelve plans to purchase
ComVergen Communications for $50 million because of the losses.


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

SINA.COM: Revenue Dips 20 Percent
---------------------------------
Sina.com, a Chinese language Web site, saw revenue decrease 20
percent for the current quarter on lower advertising costs.

The slowing down of the online advertising market also affected
China's other top Internet portals -- Sohu.com and Netease.com --
with shares plummeting by as much as 95 percent. These companies
are competing for a slice in the US$120 million Chinese online
advertisement market, Hongkong iMail reported on Wednesday.

"The slowing down of the online advertising market is a global
phenomenon," said Daniel Mao, chief operating officer of
Sina.com. "The online advertising adoption still takes a little
bit of time for dotcom companies, which are having difficulties
raising more money. From our end, we expect to see a 10 percent
to 20 percent reduction from the second quarter's revenue".

The company is still confident that it can break even by the end
of 2002 or early 2003.

Sina.com said earlier this month it lost US$8.9 million in its
second quarter even as revenue more than doubled. Revenue rose to
US$7.6 million in the quarter ended December 31, compared with
US$3 million in the previous period.


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

PT SURYA SEMESTA:  Posts Rp43.9B
--------------------------------
PT Surya Semesta Internusa reported a Rp43.9 billion net loss in
the first nine months of last year mainly because of debt
repayments.

Liabilities totaled Rp1.126 trillion at the end of September
2000, an increase of 11.90 percent from Rp1.006 trillion a year
earlier, according to the Tuesday edition of Indoexchange News.

The company's liabilities grew by an average 20.02 percent during
the period between January 1997 and September 2000.

The total revenue surged by 29.19 percent to Rp197.82 billion in
the first nine months last year compared with Rp153.12 billion in
the same period in the previous year. The overall average for the
revenue from January 1997 and September 2000 decreased by an
average of 15.63 percent.

PT Surya Semesta Internusa president Marseno Wirjosaputro
reported to the Jakarta Stock Exchange (JSX) management that its
subsidiaries and associated companies have completed loan
restructuring with the Indonesian Banking Restructuring Agency
(IBRA) and other banks through cash settlement and term loan
amounting to $77.4m and Rp96.3bn as of December 31, 2000. The
figure includes $44m loan restructured at its 48 percent-owned
hotel investment subsidiary through cash settlement and term loan
with 9 years tenor.

The company also announced that it has completed an internal
merger between two subsidiary companies -- PT TCP Internusa and
PT Multi Plaza Properties on October 31, 2000.


SINAR MAS:  Pledges Assets
--------------------------
Sinar Mas Group has pledged to give the Indonesian Bank
Restructuring Agency (IBRA) collateral assets in return for a
government bailout for its huge $12 billion debt, according to
the Wednesday issue of the Jakarta Post.

Chief research officer of Danareksa Research Institute Raden
Pardede said that IBRA must make sure that it can sell the assets
whenever necessary to raise cash.

"If IBRA can't sell the assets any time it wishes, it (the
bailout) would become the burden of taxpayers," said Raden
Pardede, Chief research officer of Danareksa Research Institute.

The Indonesian government issued bonds worth Rp430 million to
finance the recapitalization program including the interest
expense of the bonds.

Edwin Gerungan, IBRA chairman, said Sinar Mas and Bank
Internasional Indonesia (BII) agreed on a settlement for the
Rp13.7 trillion debt avoiding risk of closure.

The bank's capital adequacy ratio (CAR) will increase from 6.8
percent to 10 percent because Sinar Mas' debt will be taken out.
Government's minimum CAR is 8 percent by the end of this year or
risk closure.

The government has also earlier agreed to extend the repayment
period of the debt from September 30, 2002 to September 20, 2003.
BII was founded by Sinar Mas, but the government now owns a
controlling stake in the bank after the government financed the
bank's recapitalization program in 1999.


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

MATSUZAKAYA:  Closes Yokkaichi Outlet
-------------------------------------
Department store operator Matsuzakaya Co. will close its outlet
in Yokkaichi, Mie Prefecture, following a 18.8 billion yen loss
in the 1999 business year ending February 2000, according to
Wednesday's Japan Times On Line.

Kunihiko Okada, Matsuzakaya President, blamed the losses on
strong competition and new international accounting standards.
The entry of Jusco Co. and other suburban outlet operators
affected sales at the Yokkaichi store after peaking in 1992.

The Yokkaichi store accounts for roughly 3 percent of total sales
at Matsuzakaya's 10 stores.


YAMAZAKI BAKING:  Posts 76.1B Loss
----------------------------------
Yamazaki Baking Co. will post a group loss of 76.1 billion yen on
planned retirement and pension-related liabilities for the
business year that ended December 31, 2000.

The ailing bakery company is concerned that plummeting stock
prices have cut into its pension assets instead of the planned
installment payments in liabilities for three years, according to
Tuesday's Japan Times On Line.

As a result, the company has cut its earnings forecast for the
past fiscal year. It now expects a group net loss of 44.2 billion
yen, a sharp reversal from the previously projected net profit of
7.5 billion yen.

Group revenue forecasts have dipped from 740 billion yen to 729
billion yen and pretax profit to 9.6 billion yen from 20.3
billion yen.


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

HYUNDAI ASAN:  Hyundai Group Slashes Funds
------------------------------------------  
Hyundai Group has sent only $6 million to its North Korean
Subsidiary, Hyundai Asan, endangering the future of the money-
losing Mount Kumkang tourism project, according to Wednesday's
South China Morning Post.

Huh Hyun-sook, an official at Hyundai Asan, said it is still
uncertain whether the North Korean government will allow Hyundai
cruise ships to its scenic Mt. Kumkang area since only one-half
of the promised amount has been sent. Hyundai has so far paid
North Korea US$342 million for opening its borders to tourists
from rival South Korea. About 370,000 southerners and 900
foreigners have toured the area by deluxe cruise ships.

Rigid North Korea authorities and high travel costs force Hyundai
Asan to missed its expected 500,000 tourists every year managing
only to bring in 210,000 last year.


HYUNDAI ENGINEERING:  Creditors Provide 300B Won in New Loans
-------------------------------------------------------------
Creditors of Hyundai Engineering & Construction Co. have agreed
to extend 300 billion won in fresh loans to help the ailing
contractor meet maturing bills next month. Shin Bank, Chohung
Bank and Hanvit Bank have agreed to provide new loans to the
ailing construction firm.

The Financial Supervisory Commission says however that if there
is still a mismatch between the maturing loans and outstanding
receivables, the company will continue to have a cash flow
problem, Bloomberg reported on Wednesday.

Hyundai Engineering must be able to pay 400 billion won of bills
next month while 280 billion won falls due on Wednesday.

H&CB, in which the government is the major shareholder, granted a
150 billion won loan earlier this month to Hyundai Engineering.
The loan represents more than a third of the funds needed to keep
the contractor afloat in the first quarter.


SSANGYONG CEMENT:  Hands 200 Billion Won Debt to Yongpyong Resort
-----------------------------------------------------------------
Cho Hung Bank, main creditor of Ssangyong Cement, says the cement
company will separate Yongpyong Resort by handing over its debts
to create an independent company and have a fresh start.

The cement firm will turn over 200 billion of its debt to the new
Yongpyong Resort, which is capitalized at 190 billion won and
holds assets totaling 494.9 billion won, the Korea Herald
reported on Tuesday.

Ssangyong Cement owns one-half of the resort complex while the
other half belongs to foreign investment company PPRI II.

The separation of the resort complex is one item in Ssangyong
Cement's self-rehabilitation effort.


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

MBF FINANCE:  AMMB Merger Optimistic
------------------------------------
The merger of MBf Finance Bhd. and Arab-Malaysian Banking Group
looks more likely as negotiations with recapitalisation agency
Danamodal Nasional Bhd will probably be concluded in the next few
months.

Danamodal owns 100 percent of MBf Finance and has already
injected RM2.28 billion, the Edge Daily reported on Wednesday.

Azlan Hashim, Arab-Malaysian Merchant Bank Bhd (AMMB) deputy
chairman Datuk, AMMB and Danamodal will settle on a "mutually
agreeable price" for its stake in MBf Finance.

Earlier there were negotiation for a merger with Multi-Purpose
Bank Bhd. but MBf Finance's former parent company rejected the
offer on price concerns.

The Arab-Malaysian Group is currently the only anchor bank
without a merger partner following an inconclusive end to its
negotiations.


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

SRIVARA ESTATE:  Restructures Bt10.4B Debts
-------------------------------------------
Srivara Real Estate has submitted its Bt10.4 billion debt-
restructuring plan prepared by Theeraphon Voranithiphong of Asset
Recovery Company Ltd. in a letter to the Stock Exchange of
Thailand.

According to Tuesday's issue of the Nation, creditors who file an
application for debt repayment are divided into 6 groups,
according to terms and conditions of the Bankruptcy Act.
Creditors who did not file the application for repayment of debt
are divided into 2 groups.

The first group is secured creditors whose debts account for not
less than 15 percent of the company's outstanding debts amounting
to Bt3.014 billion. Property at Chachoengsao province, mortgaged
to creditor group 1, Srivara, shall issue ordinary shares of
40.90 million shares at 3 baht per share totaling Bt122.70
million for debt repayment. The creditor shall redeem the
mortgage to Srivara.

The second group is unsecured creditors with Bt1.271 billion in
claims. Mortgage property will be transferred to each creditor as
debt repayment (debt-asset swap), thereby reducing the principal
of the remaining debt by 85 percent. The third group is customer
creditors who will have debts reduced by 67 percent and a three-
year extension on repayment. Employee debtors will be group 4,
who are collectively owed Bt37 million but will have a 80 percent
debt forgiveness and a three-year debt repayment rollover.

Group 5 consists of debts worth Bt4.65 billion owed to director
creditors reduced by 95 per cent and paid after three years.
Unsecured creditors who hold Bt1.21 billion in claims will face
an 85 percent debt forgiveness and three-year rescheduling.

Customers who did not file an application for debt repayment can
enter into a new agreement to buy property or take a 67 percent
cut and allow a three-year rescheduling. Bt268 million owed to
directors not filing an application for debt repayment will be
discounted by 95 percent and their payment will be extended for
three years.

After the Central Bankruptcy Court approves the plan, a 12-month
grace period will be given. A default of repayment will not be
declared if the amount is less than 50 percent of the debt.

There will be a capital restructuring program and the registered
paid-up capital shall be reduced by reducing the number of issued
shares from 100 shares to 1 share, the fraction of 100 shares
shall be rounded up to 1 share. After the reduction, the
registered and paid-up capital shall be equal to 10 million baht,
1 million ordinary shares at 10 baht each.

The plan will have a life span of five years. On December 14 of
last year creditors endorsed the debt-restructuring plan
appointing members of the creditors committee. They are
Radhanasin Asset Management Company, Kriengkai Siripanusathian,
Voravut Seadtanaluk, Thai Strategic Asset Fund and Bank Thai
Public Company Limited.



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.

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