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                        A S I A   P A C I F I C

                 Friday, February 2, 2001, Vol. 4, No. 24

                               Headlines

A U S T R A L I A

AUSTAR:  Finalizing Debt Restructuring Plan
NETWORK DESIGN: Cuts 250 Jobs
PRESTON RESOURCES:  Shareholders May Reject Recap Plan


C H I N A  &  H O N G  K O N G

KING PACIFIC:  Posts $190 Million Net Loss
LAM SOON:  Records $86.60M Annual Loss
MAE HOLDINGS:  Post $26.15M Net Loss
TEM FAT:  Interim Loss Widens to $216M


I N D O N E S I A

PLN:  Needs To Scale Down Losses


J A P A N

KYOEI LIFE:  Prudential Injects 50B Yen Fund
SOGO:  Ninety Percent of 3,300 Creditors Approve Rehab Plan


K O R E A

DAEWOO MOTOR:  Creditors Extend $142M in Funds
HANBO IRON:  To Split Into Two Units


M A L A Y S I A

NEWS STRAITS TIMES:  Incurs RM22.015M Losses


P H I L I P P I N E S

PHIL. NATIONAL BANK:  Government May Rescind Emergency Loan
URBAN BANK: SSS Approves Rehabilitation Plan


S I N G A P O R E

HUTCHISON INTRAPAGE:  Ceases Operation
THAKRAL CORP.:  Offers to Buy Back Debts


T H A I L A N D

CENTRAL PAPER:  Transfers Assets to Siam City Bank
THAI MELON:  Creditors Reject Bt14B Debt Restructuring Plan
THORNBURY AUTOMOTIVE:  Approves Bt25.78B Debt Restructuring


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

AUSTAR:  Finalizing Debt Restructuring Plan
-------------------------------------------
TV and Internet group Austar can obtain a $200 million facility
once it finalizes the details of its debt-restructuring plan.
The plan calls for possible asset sales and scaling back its
expansion plans, according to the Thursday edition of the Sydney
Morning Herald.

Lenders will examine Austar carefully before extending loans
because of its $27 million a month cash burn rate, which will last
until May. The new debt facility would finance Austar until mid-
2002.

Austar's 50 percent share in the Telstra-Saturn joint venture in
New Zealand will likely be sold to its partner, as Austar must
invest another $50 million in the venture to access a major part
of the venture's $NZ900 million ($723 million) debt facility.
Austar's half stake is reportedly worth $200 million.

Austar will also dissolve its 50-50 Internet joint-venture with
affiliate company Chello, the Dutch broadband group.


NETWORK DESIGN: Cuts 250 Jobs
-----------------------------  
Network Design and Construction (NDC) says the company will
eliminate 250 jobs through voluntary redundancy.

NDC has fewer shares in Telstra's design and construction business
because of competition from other companies who are winning
contracts, Fairfax I.T. reported on Wednesday.

A memorandum revealed that Telstra is planning to privatize NDC
and is being supported by Australian Prime Minister John Howard.

This came as Telstra drastically downgraded investment in the
customer access network, the link between most Australians and the
local exchange.

October last year, the company slashed its provisioning contracts
by 40 percent from $400 million to $250 million.

Telstra is reducing the amount of outsourced contracts for the
upgrading and maintaining of its network.

PRESTON RESOURCES:  Shareholders May Reject Recap Plan
------------------------------------------------------
Minority shareholders of Preston Resources may reject a
recapitalization plan on Friday until financial difficulties are
addressed. Dissident shareholder Mark Warnes also rejected the
appointment of Preston director Terence Topping, according to the
Friday issue of the Sydney Morning Herald.

Preston, which is based in Perth, has been suspended from
Australian Stock Exchange trading for 15 months after technical
problems with the company's Bulong nickel laterite mine severely
constrained cash flow. This forced the company to default on
several interest repayments to US note holders owed $US185 million
($338 million) by the company.

Some shareholders are unhappy with the planned hand over of 95
percent control of Bulong mine -- the company's key asset -- to
the US note holders.

Warnes proposes to indemnify Preston against any future claims
arising out of the project if the note holders take 95 per cent of
Bulong. He also insists the company's board of directors resign.

Preston's financial difficulties started when it bought the Bulong
nickel mine from Resolute for $319 million in late 1998.


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

KING PACIFIC:  Posts $190 Million Net Loss
------------------------------------------
King Pacific International Holdings Ltd. posted a net loss of $190
million for the half year ended March 31, 2000.  In 1999, the net
loss was $200 million and turnover was $196 million during the
same period, CN-Market News reported on Tuesday.

King Pacific is engaged in building construction and maintenance
services. Also participates in property investment and
development.

The chairman of the board is Cheung Yiu Wing and the majority
stockholder is Whirlwind Holding Ltd. with 18.47 percent stake.


LAM SOON:  Records $86.60M Annual Loss
---------------------------------------
Lam Soon (Hong Kong) Ltd recorded a narrowed loss of $86.6 million
for the year ended December 31, 2000, compared with a loss of $165
million a year earlier, according to the Tuesday edition of CN-
Market News. Turnover was $1.787 billion. Loss per share was
$0.36. No final dividend was declared.

Lam Soon (Hong Kong) Ltd. manufactures, processes and trades in
edible oils, food products, packaging products, detergents, flour
products and other general goods.

Long-term debt was HK$374.57 million and total liabilities were
HK$1.14 billion. The long-term debt to equity ratio of the company
is 0.24.

As of December 1999, the accounts receivable for the company were
HK$357.93 million, which is equivalent to 70 days of sales. This
is higher than at the end of 1998, when Lam Soon (Hong Kong)
Limited had 58 days of sales in accounts receivable, according to
Wright Investors' Service.


MAE HOLDINGS:  Post $26.15M Net Loss
------------------------------------  
Mae Holdings Limited posted an increased net loss to $26.15
million for the half year ended October 31, 2000, compared with a
loss of $6.08 million in the same period of 1999, according to
Tuesday's CN-Market News.

Turnover during this period was $185 million. Loss per share was
one cent. No interim dividend was declared.

Mei Ah Electrical & Industry (HK) Limited specializes in
transformers, coils, adapters, switching power supply, dimmers,
cellular phone chargers and batteries and over 10 years of
experience within the electrical field. The company is the largest
toroidal transformer manufacturer in the world.


TEM FAT:  Interim Loss Widens to $216M
--------------------------------------
Tem Fat Hing Fung (Holdings) Ltd. registered a widened loss of
$216 million for the half-year ended October 31, 2000, compared
with a net loss of $30.47 million a year earlier. Turnover during
this period was $1.68 billion. Loss per share was 9.34 cents,
according to the Tuesday issue of the CN-Market News.

The company's long-term debt stood at HK$267.54 million while
total liabilities were HK$1.65 billion. The long-term debt to
equity ratio of the company is 0.32. This is significantly lower
than the long-term debt to equity ratio as of in April 1999, when
the long-term debt to equity ratio stood at 0.97.

The company's accounts receivable equivalent to 86 days of sales
as of April 2000 were HK$1.31 billion. At the end of 1999 it had
67 days of sales in accounts receivable. The accounts receivable
have become increasingly longer during each of the previous four
years: at the end of fiscal 1996, there were only 21 days of sales
in accounts receivable: this has increased every year (and at the
end of 2000 stood at 86 days).
  
Tem Fat Hing Fung (Holdings) Limited refines, moulds, trades and
distributes gold bullion, gold ornaments, diamonds and other
jewellery products.


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

PLN:  Needs To Scale Down Losses
--------------------------------
State-owned electricity company PLN needs to trim losses to around
Rp4.43 trillion this year by revaluating and restructuring its
assets to avoid bankruptcy, according to Wednesday's Indoexchange
News.

According to PLN's data, operating revenue was Rp22.69tr in 2000,
while the net loss could be reduced to Rp22.55tr.

To recover from the setback, Rizal Ramli (Coordinating Minister
for Economic Affairs), has recommended that PLN should revaluate
its assets in order to ease the settlement of its debts.

If the asset revaluation and restructuring are implemented in
2001, PLN's operating revenue is predicted to reach Rp26.96tr and
its net loss could be reduced to Rp4.43tr.


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

KYOEI LIFE:  Prudential Injects 50B Yen Fund
--------------------------------------------  
Prudential Insurance Co. of America will try to bring solvency
margin of failed Kyoei Life Insurance Co. above 500 percent by
injecting 50 billion yen in funds, thus avoiding the safety net
provided by Life Insurance Policyholders Protection Corp., Japan
Times On Line reported on Thursday.

When Kyoei becomes a wholly owned subsidiary of Prudential, an
additional 98 billion yen will be forthcoming from the American
insurance giant.

Kyoei policyholders, however, will have to accept a 1.75 percent
rate of return, drastically lower than the promised 4 percent.

Prudential is spending 364 billion yen to purchase its business
rights and brand name, dispelling fears that taxpayers' money will
be needed to rehabilitate Kyoei.

A total of 415 billion yen remains available in the form of
emergency protection funds pooled by life insurance companies, and
the industry safety net can apply for 400 billion yen in public
funds should it exceed its limit.

The industry continues to brace for the funding needs of the
failed Taisho Life Insurance and Chiyoda Mutual Life Insurance,
which have yet to announce their rehabilitation plans.


SOGO:  Ninety Percent of 3,300 Creditors Approve Rehab Plan
-----------------------------------------------------------
Some 90 percent of the 3,300 creditor banks and suppliers to Sogo
Corp., a failed department-store chain, have approved a
rehabilitation plan to revitalize the company.

The Tokyo District Court also approved a reduction of the number
of Sogo Co. stores from 22 to 13 and to rebuild the surviving 13,
Japan Times On Line reported on Thursday. The 13 surviving stores
will be merged and the number of employees will be reduced from
10,000 to 4,000.

Nine stores are looking for possible buyers and are negotiating
with local municipalities because they have given up on the
rehabilitation efforts.

Sogo special adviser Shigeaki Wada, who oversaw the rebuilding of
Seibu Department Stores Ltd., will become the new president of
Sogo and will be tasked with modernizing its management.


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

DAEWOO MOTOR:  Creditors Extend $142M in Funds
----------------------------------------------
Creditors will give ailing Daewoo Motor Co. $140 million by the
end of February after approving its plan to cut 999.2 billion won
in costs, Bloomberg reported on Wednesday.

The company will lay off 6,884 employees by March, cut investment
spending by 166.4 billion won and raise domestic car prices by an
average 2.6 percent.

Daewoo Motor needs to institute reforms in order to attract
potential buyers and persuade creditors to give financial aid.  
General Motors and Fiat SpA are interested in buying some of its
assets and have been evaluating its books for the past five
months.

To recall, General Motors has requested that Daewoo Motor
undertake a genuine restructuring effort before making a final
decision on a takeover next month.

GM President & CEO Rick Wagoner said many of GM's facilities are
overlapping some of Daewoo's operations and plants, which might
create difficulties in a takeover.


HANBO IRON:  To Split Into Two Units
------------------------------------
Booz Allen & Hamilton, the consulting firm with the task force in
charge in disposing of bankrupt Hanbo Iron and Steel, has
recommended that the company should be split in two and sold
separately, according to the Wednesday issue of the Korea Herald.

Korea Asset Management Corp. (KAMCO) says the consulting firm
insists this is the best way to maximize the company's selling
price.

The two separate divisions were initially identified as "A" and
"B". The "A" sector includes steel rod and hot coil plants and the
"B" includes cold coil and corex plants.

"Unit-by-unit sale is viewed to be the rational choice for selling
Hanbo as the nature of facilities in A and B sectors is entirely
different," said Cho Dok-sang, who heads the task force team.
"This way, it would also lighten the financial burden of companies
taking over the steelmaker."

He also recommended that KAMCO select one of the world-leading
investment firms to oversee the steelmaker's sales.


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

NEWS STRAITS TIMES:  Incurs RM22.015M Losses
--------------------------------------------
New Straits Times Press (Malaysia) Bhd (NSTP) has reported a
RM22.015 million pre-tax loss in the first quarter ended November
30, 2000, compared with a profit of RM3.004 million in the
corresponding quarter of the previous year, Bernama reported on
Wednesday.

Turnover increased by 4 percent to RM160.619 million from
RM155.008 million in the previous year, NSTP said in its unaudited
first quarter results released today.

The media company incurred a post-tax loss of RM19.756 million
during the period under review compared with a profit of RM4.222
million in the first quarter of 1999.

Although a revamp in the group's newspapers and better turnover
from its insurance underwriting business have helped increased the
group's turnover, the bottom-line was affected by an increase in
newsprint price and consumption, investment in human resources and
depreciation.

The group's expansion program in newspaper publishing plants in
Shah Alam and Prai have helped rising depreciation.


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

PHIL. NATIONAL BANK:  Government May Rescind Emergency Loan
-----------------------------------------------------------
The government is presently reviewing the P25 billion emergency
loan it granted to the Philippine National Bank (PNB). Alberto
Romulo, the new Finance Secretary, might demand immediate payment
from PNB and disregard an earlier agreement (dacion en pago -a
payment-in-kind arrangement) that allowed the bank to settle its
debts, according to the Thursday issue of the Philippine Daily
Inquirer.

PNB is set to settle a P15-billion debt it owes the Bangko Sentral
ng Pilipinas by paying with acquired assets.

Alberto Reyes, BSP Deputy Governor, says PNB can still use the
foreclosed real estate assets to pay the emergency loan it
obtained from the central bank on Oct. 6 last year.

"The P15 billion will be paid within the 180-day period, but it
could be in cash or in assets," Reyes said.

He said the PNB loan would not be converted into a long-term
obligation, as the bank previously planned.

PNB sought a short-term emergency loan to ease its liquidity
problems. Critics tagged it as another "crony deal" of the Estrada
administration, as PNB is owned mainly by Lucio Tan, a major
contributor to former President Joseph Estrada.


URBAN BANK: SSS Approves Rehabilitation Plan
--------------------------------------------
The Social Security System (SSS) has approved the rehabilitation
plan of Urban Bank, retaining its P100 million worth of common
shares converted to Bancommerce shares.

Vitaliano Nanagas II, SSS president, said the system would benefit
if it retains its holdings, according to the Thursday issue of the
Philippine Star. He said it will not alter the performance of SSS
since its exposure to rehabilitated private commercial banks
consists of only one percent of total assets. As of July last
year, SSS had assets totaling P183.6 billion.

Urban Bank went bankrupt last year and was placed under
receivership by the Philippine Deposit Insurance Corp. (PDIC).
Bancommerce offered to acquire and rehabilitate Urban Bank.

Bancommerce president and chief executive officer Raul B. de Mesa
said Urban Bank should be opened within the year, and its full
operational integration with Bancommerce will be achieved before
the end of the year.


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

HUTCHISON INTRAPAGE:  Ceases Operation
--------------------------------------
Hutchison Intrapage will cease operations in Singapore after
losing cash for the past four years, leaving 40,000 subscribers.

The company's failure came when mobile phones replaced pagers --
its main product -- as the most popular mode of communication.  
Paging subscribers dipped from 1.4 million in June 1998 to 839,000
last December, Bloomberg reported on Thursday.

Hutchison Intrapage, the smallest paging operator, is also 30
percent owned by Singapore trading company Intraco Ltd. Another 30
percent is owned by its unit Teledata (Singapore) Ltd., a provider
of telecommunications services and products.

Hutchison Intrapage is 40 percent owned by Hongkong's Hutchison
Telecommunications.


THAKRAL CORP.:  Offers to Buy Back Debts
----------------------------------------
Thakral Corp. Ltd., a Singapore-based distributor of consumer
electronics, is offering to buy back S$462.1 million debts owed to
29 creditor banks, Bloomberg reported on Thursday.

The company is awaiting fresh funds from the Thakral family while
it holds extended talks with banks for debt repayment, which
expired on December 15.

Thakral, which distributes most of its products in China, such as
Sony TVs, IBM computers and Disney video compact discs, has been
struggling to make money and repay debt. The company went into
debt largely as a result of bad bets on the Japanese yen.

Thakral Corp. lost S$47.4 million for the six months ended
September 30 of last year and does not expect to show earnings
this year.


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

CENTRAL PAPER:  Transfers Assets to Siam City Bank
---------------------------------------------------
Central Paper Industry Plc. (CPICO) will transfer assets to Siam
City Bank as debt repayment. Parkpoom Sitthiprasert, CPICO
director, said in a letter to the Stock Exchange of Thailand that
the board authorized negotiations for corporate debt restructuring
agreement on January 29.

CPICO declared a net loss of Bt165.89 million for the year ending
in September. The company has total assets of Bt2.64 billion and
liabilities of Bt2.81 billion.

The company produces and distributes uncoated printing paper.


THAI MELON:  Creditors Reject Bt14B Debt Restructuring Plan
-----------------------------------------------------------
Creditors representing 87.5 percent of the total debt of Thai
Melon Polyester Plc. have rejected a Bt14 billion debt-
restructuring plan because it can only offer so many benefits, the
Nation reported on Wednesday.

The rehabilitation plan would only give back to creditors 8
percent of the total debts while converting Bt4.6 billion debts
into 80 percent equity for the creditors and reducing its
liabilities by Bt4.7 billion.

The creditors will also provide additional working capital of
Bt820 million at 8.5 percent interest.

Charnwood Bodiratanagura, Thai Melon's president, said the company
would pursue negotiations even though there are already
indications that the court will dismiss the plan.

According to law, creditors with at least 75 percent of total
debts are required to approve restructuring plans.

About 2,000 of the company's 5,000 workers were laid off when the
factories were closed. Thai Melon is now running at only 10
percent of capacity.

The Central Bankruptcy Court has scheduled a hearing for February
6.


THORNBURY AUTOMOTIVE:  Approves Bt25.78B Debt Restructuring
-----------------------------------------------------------
Creditors approved the Bt25.78 billion debt-restructuring plan of
Thornbury Automotive Assemble Plant Co.

The founding family will now be able to "buy" it back the local
assembler and dealer of Mercedes Benz automobiles from the
creditor backed holding company, which is now the majority
shareholder, according to the Wednesday edition of the Nation.

Vinai Vamvanij, Company executive director, said a holding will be
established,Thonburi Automotive Group Company Ltd, which has 100
percent ownership of Thonburi Automotive Assembly Plant. The debts
will be converted into equity in the new holding firm.

The restructuring of the Bt25.78 billion in total debt was broken
down into Bt2.89 billion in accrued interest to be forgiven by
creditor banks, some Bt1.07 billion to be forgiven by other
creditors and Bt4.47 billion to be converted into equity of the
holding company. The remaining Bt17.30 billion would be repaid to
creditors after the company improved its financial health with the
rehabilitation programme.

The land and other assets will be liquidated and the proceeds
going to the creditors. The creditors will own 73 percent of the
new holding company.

The debt-restructuring plan will reduce its debt to a serviceable
level. Creditors can expect to get more of their money back from
this debtor than liquidating the assets outright. This will also
be best for the employees, dealers and customers.

The Viriyaphun family will retain only 27 percent ownership in the
new holding company but the family is allowed to raise its
holdings to 48 percent.  

Kanokphorn Ngarmnil, director of the advisory service of
PricewaterhouseCoopers FAS Ltd, said the plan offers three ways
for the Viriyaphun family to gain back the creditors' 73-per-cent
equity in the holding company. A 24-per-cent allotment would be
returned to the Viriyaphun family for free on condition that the
company must be operated to grow at 4 per cent a year. Another 24
per cent would also be available for the family at no cost if the
company manages to repay Bt3.5 billion of the debt.

The third allotment of 25 per cent would be sold back to the
family at market price if the company repaid Bt2 billion more of
the outstanding debt.

This share buy-back process should take one to seven years.

The debt-restructuring plan will be submitted to the Central
Bankruptcy Court for its approval on February 14.



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 2000.  All rights reserved.  ISSN: 1520-9482.

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