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                        A S I A   P A C I F I C

                 Monday, February 5, 2001, Vol. 4, No. 25

                               Headlines


A U S T R A L I A

ONE.TEL:  Slowdown in Six Months
RUSHTV:  Investors Forego Investments


C H I N A  &  H O N G  K O N G

CHINA CEREALS:  Consolidates Subsidiaries
PACIFIC CENTURY:  Founder's Father Will Not Intervene


I N D O N E S I A

PT KERAMIKA:  Posts Rp538B Net Loss


J A P A N

DAIEI: New Directors Appointed
RBM CO.:  Sells 39 Beauty Shops
SOGO:  Fukuoka Bank Opposes Rehab Plan


K O R E A

HAITAI STORES:  Court Approves Debt-Equity Swap
HYUNDAI INVESTMENT:  AIG Proposes Joint Venture


M A L A Y S I A

PUTRA:  Defaults on 270.9M RGT. Interest Payment


P H I L I P P I N E S

REYNOLDS:  Faces Delisting Following Stockbroking Scandal
URBANCORP: Payment to Creditors Deferred


S I N G A P O R E

THAKRAL HOLDINGS:  Urging Thakral Family to Sell Their Stake


T H A I L A N D

EK HOLDINGS:  Creditors Reject Rehab Plan
SIAM COMMERCIAL: Trims Branches and Employees


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

ONE.TEL:  Slowdown in Six Months
--------------------------------
One.Tel, the Packer and Murdoch family-backed telephone company,
will experience a slowdown in its cash burn rate in the six
months to June because the anticipated increase in its customer
base will not be realized.

One.Tel forecast its cash position would drop by $26 million in
the June half to $75 million, even though it intends to spend $66
million acquiring 143,000 customers during the period. Investors
were cautious in responding to prospects for the turnaround, with
One.Tel shares shedding 2c to finish at 54c.

Jodes Rich, One.Tel joint managing director, said One.Tel still
has the backing of Kerry Packer's Publishing and Broadcasting and
Rupert Murdoch's News Corp., which between them own 44 percent of
its capital.

Revenue for the half year rose to $579 million from $243 million
a year earlier. Revenue is forecast to jump to $1.3 billion for
the year, with total customer numbers rising to 3.1 million.

Earnings before interest, tax, depreciation and amortization
(EBITDA) was a negative $101 million in the first half, up from
$53 million in losses a year ago.


RUSHTV:  Investors Forego Investments
-------------------------------------    
RushTV, an Internet broadcast venture, will meet with its
administrator after i7, the Internet arm of the Seven Network,
did not push through a proposed P1 million investment. After
failing to raise the cash needed, RushTV laid off 20 employees in
January out of 48 staff, the Sydney Morning Herald reported on
Friday.

i7 has invested $5.75 million in RushTV over the past 12 months.
The money will be used to build a vast network of youth TV
channels and Web sites starring celebrity sportspeople. Westpac,
Pepsi and Telstra signed on as advertisers. i7 says it plans to
launch new Web sites with content patterned on TV properties to
cost cutting measures.

Haydon Bray, appointed by Arthur Andersen as RushTV
administrator, said they are looking for the proper timing to
relaunch RushTV since they have substantial sponsors willing to
help.


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

CHINA CEREALS:  Consolidates Subsidiaries
-----------------------------------------
China National Cereals, Oils & Foodstuffs Import & Export Corp.
(Cofco), a state-owned food-trading conglomerate, will be
consolidating its SAR-listed subsidiaries as part of its
restructuring plan by injecting HK$1.15 billion worth of edible
oil refineries and wineries assets, according to the Thursday
issue of the South China Morning Post.

Cofco (Hong Kong), wholly-owned SAR window company, will dispose
of its 100 percent stakes in Cofco Oils & Fats Holdings and Cofco
Wines & Spirits Holdings to its associate red chip, China Foods
Holdings, for HK$1.1 billion.

China Foods, the Cofco group's food and beverage flagship, will
issue 692.66 million new shares at HK$1.60 to Cofco (HK) and will
now be known as Cofco International.

Cofco is also selling its 40 percent stake in soybean oil refiner
Great Ocean Oil & Grain Industries to China Foods to separate
government and business.


PACIFIC CENTURY:  Founder's Father Will Not Intervene
-----------------------------------------------------
Companies belonging to the father of Richard Li, Pacific Century
founder, will not invest in Pacific Century CyberWorks, according
to the Thursday issue of the South China Morning Post.

Tycoon Li Ka-shing, who owns Cheung Kong (Holdings) and
Hutchinson Whampoa, was rumored to have an interest in a Pacific
Century stake. Shares of Cheung Kong and Hutchison Whampoa jumped
3 percent and 2.5 percent respectively after Mr Li's comment.
CyberWorks rose 1.12 per cent.

Analysts fear that if the elder Li decides to invest in Pacific
Century it would be to help his son and not for financial
considerations.

Mr. Li is rather interested in investing in Cable & Wireless
(C&W) through Hutchison with a reported HK$200 billion war chest
to spend. Hutchinson and Pacific Century are fierce competitors.


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

PT KERAMIKA:  Posts Rp538B Net Loss
-----------------------------------
PT Keramika Indonesia Asosiasi (KIA) posted a net loss of Rp538
billion last year but is expected to complete its US$100 million
debt-restructuring process in the first quarter this year.

Budi Hadidjaja, President Director of KIA, said the company is 90
percent indebted to the Royal Bank of Scotland, Brussel Lambert,
OCBF and Credit Lyonnaise with principal debts worth US$88
million and interest at US$12 million. The remaining 10 percent
belongs to the Indonesia Bank for Reconstruction Agency (IBRA)
transferred from Bank Mashill, Bank Tamara and Bank Umum
Nasional, Bisnis Indonesia reported on Thursday.

PricewaterHouseCoopers, independent consultant, is preparing the
restructuring proposal process.

The company will reopen its Gresik and Cileungsi factories this
year increasing its production in roof and floor tiles.


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

DAIEI: New Directors Appointed
------------------------------
Daiei Inc. shareholders approved 17 new board members, removing
Daiei group founder Isao Nakauchi after 40 years of direct
leadership, Japan Times On Line reported on Wednesday.

At a board meeting held immediately after the shareholders'
gathering, Kunio Takagi was formally elected president. Jiro
Amagai, a former bureaucrat of the Ministry of International
Trade and Industry, was elected chairman. Takashi Hirayama, a
former director at Niko Do Co., was elected vice president.

The board also approved the issuance of 120 billion yen in
preferred shares for its four main creditor banks led by Sumitomo
Bank.

Many shareholders questioned Daiei management's role in inside
trading charges and poor performance leading to the resignation
of senior officials including Hiroshige Sasaki, Acting President.

The retailer unveiled a revised three-year restructuring plan in
November, which calls for closing 32 loss-making outlets and
shedding 4,000 employees.


RBM CO.:  Sells 39 Beauty Shops
-------------------------------  
RBM Co., a beauty shop chain, will sell 39 Esthe de Milord beauty
shops to 14 operators because of its huge debts of 19.31 billion
yen, according to the Monday issue of Jiji Press English News
Service.

Some 250 creditors received the takeover plan October of last
year when the beauty salon operator filed for protection to
preserve its 108 shops. But creditors accused the administrator
of trying to hold out the dividends.

The next creditors' meeting is scheduled for May.


SOGO:  Fukuoka Bank Opposes Rehab Plan
---------------------------------------
Fukuoka Bank on Monday opposed the rehabilitation plan of failed
department store chain Sogo Co. No details were given.

Kiyoshi Teramoto, chief of Fukuoka Bank, said in a press
conference that Sogo management is not in contact with them so
they are not in the position to question its fairness, honesty
and credibility, according to the Monday issue of Dow Jones.

The bank became the first to oppose the chain's rehabilitation
plan. Other creditor banks, such as the Industrial Bank of Japan,
are expected to approve the rehabilitation plan for elevation to
the Tokyo District Court for approval.

Taramoto said, "We have not been given enough reference material,
based on which we could reach a conclusion on whether they would
be able to rebuild themselves".

Sogo owes Y2.7 billion to Fukuoka Bank. The Kokura and Kurosaki
branches still owe Y3 billion and Y10.7 billion, respectively.

The announcement of Sogo group branches in Kokura and Kurosaki in
the city of Kitakyushu, Fukuoka Prefecture, for protection from
creditors without any explanation came as a surprise. The
branches were closed down late last year.


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

HAITAI STORES:  Court Approves Debt-Equity Swap
-----------------------------------------------
The court has approved converting Hatai Department Store's 181
billion won in debt into equity after creditors gave their
consent, according to the Thursday issue of the Korea Herald.

This will reduce debt from 529.1 billion won at one time to 210.6
billion won after the store was placed under receivership.
Company operations will start to normalize.

Haitai will sell off an outlet in Kodok-dong, in southeastern
Seoul, to raise 40 to 45 billion won. It also intends to dispose
of its closed discount stores and real estate holdings.


HYUNDAI INVESTMENT:  AIG Proposes Joint Venture
-----------------------------------------------
The American International Group (AIG) has offered Hyundai
Investment Trust & Securities Co. (HITS) a joint venture proposal
with an initial investment of 1.1 trillion won for a 51 percent
controlling stake, the Korea Herald reported on Thursday.

Hyundai Group's stock will be converted into paid-in capital of
HITS 1.2 trillion in liabilities with the government's approval.

Chin Ton-soo, a standing member of the Financial Supervisory
Commission, said a due diligence check will be conducted on HITS
before finalizing negotiations with AIG.

The government will scrap the outstanding stock of HITS because
of poor management.


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

PUTRA:  Defaults on 270.9M RGT. Interest Payment
------------------------------------------------
Renong unit Projek Usahasama Transit Ringan Automatik Sdn Bhd
(Putra) has defaulted payment on a 270.9 million ringgit interest
servicing obligation of 270.9 million ringgit in respect of a 2
billion ringgit loan, AFX News reported on Wednesday.

Negotiations are ongoing between Putra and creditors to extend
the moratorium period on the interest payments until April 30 and
waive a 1 percent penalty for the period from September 30, 1999,
to April 30, 2001, on all outstanding interest payments.

Putra is considering the government's proposal to buy Putra's
assets under the debt-restructuring plan closely supervised by
the Corporate Debt Restructuring Committee.


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

REYNOLDS:  Faces Delisting Following Stockbroking Scandal
---------------------------------------------------------
Reynolds Philippines Corp. (RPC), an aluminum sheet maker, is in
danger of delisting from the Philippine Stock Exchange (PSE) if
it fails to submit its financial reports. When the six-month
period of compliance expires on February 4, RPC will officially
become a candidate for delisting, according to the Friday issue
of Business World.

Five out of the eight stockbrokers involved in an alleged price
scam in RPC shares have asked the Philippine Stock Exchange (PSE)
to reconsider imposing penalties. The PSE's Business Conduct and
Ethics Committee (BCEC) resolved to impose a fine of between
20,000 and 35,000 Philippine pesos ($406.92 and $712.11 at
PhP49.150=$1) on each broker involved. The brokers were charged
with kiting and wash sale -- practices used to manipulate stock
prices.

PSE alleged that Reynolds -- through individuals and companies --
had a "pre-arranged deal" with some buying or selling brokers
from May to June last year. Through this, the PSE said the
company generated temporary funds from the stock market.


URBANCORP: Payment to Creditors Deferred
----------------------------------------
Philippine Deposit Insurance Corp. (PDIC) has requested that the
Securities and Exchange Commission (SEC) defer action in
compelling Urbancorp Investments Inc. to pay interest to its
creditors, according to the Friday issue of the Philippine Daily
Inquirer. Last June, UII was given relief in paying P5.83 billion
of debt.

PDIC said the figure was "not accurate" since UII sale
transactions on April 19, 24 and 25 amounted to P4.6 billion.

The rehabilitation plan has to be approved by the Monetary Board
and PDIC before the proposed merger of UII, UBI and Bank of
Commerce is approved.


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

THAKRAL HOLDINGS:  Urging Thakral Family to Sell Their Stake
------------------------------------------------------------
Thakral Holdings, a property and hotel group, is negotiating with
the Thakral family of Singapore to sell their 40 percent stake of
$178 million to Bass Hotels & Resorts, Accor Asia Pacific and
shipping and hotel tycoon C.K. Ow of Hai Sun Hup.

The family has been forced to consider selling their stake
because of heavy losses suffered by their struggling Singapore-
listed vehicle, Thakral Corp., a distributor and manufacturer of
electronics goods in China.

Thakral Corp. went into the red to the tune of about S$58 million
after announcing a bottom line loss of S$174.47 million for the
year to March 31, 2000. That followed a S$231.62 million loss in
the previous year. Since the restructuring exercise began,
Thakral Corp. and its subsidiaries have repaid $95 million to
creditor banks. As of August 31, the group had a cash balance of
$57.9 million and sufficient liquidity to meet working-capital
needs.

Last September several investors, including the controlling
Thakral family, reportedly planned to inject about S$100 million
into Singapore-listed Thakral Corp., which is technically
insolvent and undergoing a restructuring.


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

EK HOLDINGS:  Creditors Reject Rehab Plan
-----------------------------------------
Some 122 creditors will meet again on February 16 to discuss the
changes on the rejected Bt10.3 billion rehabilitation plan of EK
Holding, a producer and distributor of rubber elastic treads.

Philtex Planner, appointed by the Central Bankruptcy Court, will
prepare EK Holding's rehabilitation program, according to the
Thursday issue of the Business Day Thailand.

Creditors rejected the provision forgiving 95 percent of the debt
and the balance of 5 percent transformed into capital. Other
creditors want to reduce the fee for the administrator pegged at
Bt1.8 million per month or Bt21.6 million annually. EK Holding
management explained the creditors should take note the
rehabilitation plan submitted was the effect of the 1996 economic
crisis when the property business was badly hit.

Its elastic tread operation is still profitable, EK Holding
noted, but revenue generated through it is insufficient to cover
the firm's expenses. The firm has therefore not been able to
repay its loans or cover service charges since March 2000.


SIAM COMMERCIAL: Trims Branches and Employees
---------------------------------------------
Siam Commercial Bank (SCB) can reduce the number of branches and
employees by introducing modern technology as part of the
restructuring plan. Virat Ratanaporn, vice president of SCB, said
the bank is earmarking Bt500 million investments in technology,
according to the Thursday issue of the Business Day Thailand.

Virat said the restructuring plan would be completed in the third
quarter of this year. The bank has so far closed 20 of its 479
branches and plans to have 200 of its 10,383 employees retire
each year.



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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