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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

            Thursday, February 15, 2001, Vol. 4, No. 33

                             Headlines


A U S T R A L I A

131.SHOP:  Transfers Control to Tomorrow Group
CONFIDENCE INVESTMENT:  ASIC Takes Over Control
INFOSENTIALS:  Two Investors Interested


C H I N A  &  H O N G  K O N G

ALPHA DEVELOPMENT:  Facing Winding Up Petition
CENTRE GAIN INVESTMENTS Ltd.:  Facing Winding Up Petition
KINSFAIR Ltd.:  Facing Winding Up Petition
MASS DRAGON Ltd.:  Facing Winding Up Petition
STAREAST.NET: Trims Down Losses

TRILLION PHARMACEUTICALS Ltd.:  Facing Winding Up Petition
XIN CHUAN SILK Co. Ltd.:  Facing Winding Up Petition
WELL SMOOTH DEV. Ltd.:  Facing Winding Up Petition
WONG FIRE ENGINEERING Ltd.:  Facing Winding Up Petition
ZHENGZHOU BAIWEN:  Sanlian Group Takeover Defended


I N D O N E S I A

PT CHANDRA:  Marubeni Prospect Bright
PT TJIWI: To Make US$13.25M Payment


J A P A N

INTERNET INITIATIVE:  Expects Long term Losses
NIIGATA CHUO BANK:  Four Execs Charged


K O R E A

DAEWOO MOTOR:  Revamps Overseas Operations
HANBO STEEL: A.K. Capital Signals Interest


M A L A Y S I A

GADEK BHD.:  Creditor Demands Payment
MALAYSIAN RESOURCES: Selects PricewaterhouseCoopers
MAYBANK:  Lays Off 1,000 Workers


P H I L I P P I N E S

BW RESOURCES:  Gov't. Bars Exec From Leaving
WESTMONT INVESTMENT:  SEC Pursues Charges on Exec


S I N G A P O R E

CAPITALAND LTD.:  Post S$287M Loss


T H A I L A N D

EASTERN WIRE:  Submits Reorganization Plan
NATIONAL FERTILIZER:  Ministry Approves Price Increases


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

131.SHOP:  Transfers Control to Tomorrow Group
----------------------------------------------
Tomorrow Group will take control of 131.Shop, an Internet
shopping mall and plans to shut it down on June 30 as soon as the
contracts of its 4,500 retailers expire, according to the Tuesday
issue of Sydney Morning Herald.

Wayne Bos, Tomorrow Group owner, said the company would be
renamed. Tomorrow plans to inject an unnamed business into the
shell if shareholders approve the takeover. 131.Shop would not be
resurrected as a retailer with a new format and strategy.

Alan Phillips, 131's chairman, said he did not expect many
retailers would renew their contracts.

131.Shop had been looking for a partner since Mr Phillips -- who
is also in charge of revamping e-tailer Jumbomall.com.au -- took
over as chairman last June.

Trevor Gardiner, 131.Shop founder, said the online mall - which
rented out virtual storefronts - fell well short of its $18.2
million revenue forecast for 1999-2000, reporting sales of $4.3
million and a net loss of $8.9 million.

For the final quarter of 2000, it reported a negative operating
cash flow of $698,000 and sales of just $30,000.

Gardiner will resign as a director to concentrate on his listed
conference management software house, Amlink Technologies. Andrew
Haythorpe and Chris Hayward will also resign. The three will be
replaced by Wayne Bos along with Tomorrow's managing director,
Rod Lyle, and chief operating officer, Alan Studley.


CONFIDENCE INVESTMENT:  ASIC Takes Over Control
-----------------------------------------------
The Australian Securities and Investment Commission (ASIC) is
taking control of the $21 million Confidence Investment Trust,
which is under the troubled Commercial Nominees Australia Ltd.,
by winding down operations and appointing Max Prentice as
insolvency partner.
  
ASIC approached the Supreme Court yesterday morning seeking
orders to remove the manager of the trust due to "unauthorised
investments", according to the Tuesday issue of the Sydney
Morning Herald.

That investment is a $2.2 million exposure to another vehicle in
the Commercial Nominees Australia stable, the Enhanced Cash
Management Trust, whose assets were frozen last November
following discovery that a large proportion of the fund's assets
was in the form of non-liquid assets.

David Stack, counsel for ASIC, told the court that Confidence
Investment Trust was set up three years ago by Flinders Asset
Management with it as manager. It has since resigned.


INFOSENTIALS:  Two Investors Interested
---------------------------------------
Two companies are willing to participate in the recapitalization
of Infosentials, a media and content company, pulling the company
out of voluntary administration to the sharemarket, according to
the AAP on Tuesday.

It is understood that a recapitalisation of Infosentials would
see a new investor take charge, wiping away the company's cash
flow problems and knocking into shape its sprawling empire of
media, content, technology and business services divisions.

A deal with creditors is going smoothly and there is a
possibility of a reorganization.

A Hong Kong company is planning to buy part of Infosentials'
business for $1.5 million including its Business Essentials
division.

Andrew Home and Paul Stewart of Spencer Co., administrators, will
try to resuscitate the company during the "short-term
difficulty."

Infosentials was placed into the hands of administrators on
December 21 after at least $2 million that should have come from
the sale of products failed to materialise.


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

ALPHA DEVELOPMENT:  Facing Winding Up Petition
----------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance has
scheduled a hearing on February 21 on the petition for the
winding up of Alpha Development Ltd. A Notice of legal appearance
must be filed on or before February 20.


CENTRE GAIN INVESTMENTS Ltd.:  Facing Winding Up Petition
----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance has
scheduled a hearing on March 14 on the petition for the winding
up of Centre Gain Investments Ltd. A Notice of legal appearance
must be filed on or before March 13.


KINSFAIR Ltd.:  Facing Winding Up Petition
------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance has
scheduled a hearing on March 7 on the petition for the winding up
of Kinsfair Ltd. A Notice of legal appearance must be filed on or
before March 6.


MASS DRAGON Ltd.:  Facing Winding Up Petition
---------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance has
scheduled a hearing on March 7 on the petition for the winding up
of Mass Dragon Ltd. A Notice of legal appearance must be filed on
or before March 6.


STAREAST.NET: Trims Down Losses
-------------------------------
Stareastnet.com, an online entertainment provider, trimmed its
losses in the quarter to December 31 to HK$35 million from HK$43
million the previous quarter, according to the Wednesday issue of
the South China Morning Post. Turnover was up to more than HK$15
million from HK$13 million previously.

Philip Wong Kun-to, Stareastnet.com chief executive, said the
company would cut more staff in a bid to tighten costs in the
coming quarter.

"We want to reduce our cash outflow rate from about HK$6 million
to around HK$1 million by the end of this quarter," Wong said.

The company is streamlining operations by reducing the 200 staff
in the past six months by 50 percent.

The company recorded a combined loss of more than HK$130 million
in the three quarters to December and HK$80 million cash on hand.


TRILLION PHARMACEUTICALS Ltd.:  Facing Winding Up Petition
----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance has
scheduled a hearing on February 28 on the petition for the
winding up of Trillion Pharmaceuticals Ltd. A Notice of legal
appearance must be filed on or before February 27.


XIN CHUAN SILK Co. Ltd.:  Facing Winding Up Petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance has
scheduled a hearing on March 7 on the petition for the winding up
of Xin Chuan Silk Co. Ltd. A Notice of legal appearance must be
filed on or before March 6.


WELL SMOOTH DEV. Ltd.:  Facing Winding Up Petition
--------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance has
scheduled a hearing on March 28 on the petition for the winding
up of Well Smooth Dev. Ltd. A Notice of legal appearance must be
filed on or before March 27.


WONG FIRE ENGINEERING Ltd.:  Facing Winding Up Petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance has
scheduled a hearing on March 14 on the petition for the winding
up of Wong Fire Engineering & Consultants Co. Ltd. A Notice of
legal appearance must be filed on or before March 13.


ZHENGZHOU BAIWEN:  Sanlian Group Takeover Defended
--------------------------------------------------
Sanlian Group's takeover of troubled retailer Zhengzhou Baiwen
was justified in order to avoid delisting from the stock exchange
after US$100 million in losses during 1999, according to the
Wednesday issue of the South China Morning Post.

This will be the first firm delisted from the Shanghai Stock
Exchange.

Shandong retailer Sanlian announced a rescue plan for the company
in December but was criticized, calling the deal "abnormal."

Zhang Jisheng, Sanlian chief executive, said in a report that
allowing the plan to proceed would benefit investors and both
companies, while a delisting would benefit no one. Jisheng also
cautioned against unfairly singling out Zhengzhou Baiwen and said
he agreed with the concept of delisting, but the country lacked
an effective mechanism to carry it out.

The China Securities Regulatory Commission, headed by Zhou
Xiaochuan, can delist a firm that posts three straight years of
losses, but so far has not made the move despite having about a
dozen candidates. Zhengzhou Baiwen has reported losses for two
years and forecast a loss for 2000.


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

PT CHANDRA:  Marubeni Prospect Bright
-------------------------------------
Marubeni Corp. is optimistic that they can end the dispute over a
new debt-restructuring agreement for PT Chandra Asri, the
petrochemical giant, with the Indonesian Bank Restructuring
Agency (IBRA), the Jakarta Post reported on Wednesday.

Hiroshi Nishizaki, Marubeni Corporate Communication Manager, said
a group of senior negotiators from the publicly listed trading
company is currently negotiating with the Indonesian Bank
Restructuring Agency (IBRA) in Jakarta and a new Memorandum of
Understanding (MoU) is expected to be signed by the two sides
next Tuesday.

Nishizaki disclosed that the Financial Sector Policy Committee
(FSPC), which compromises several economic ministers and is
chaired by Coordinating Minister for the Economy Rizal Ramli, is
scheduled to endorse the agreement on the same day in a form of a
government decree.

"We try to find the best way to settle the problem. Chandra Asri
operations are very good. But financially there is a problem
caused by a big burden of interest and debt repayment," he said.

On June 9 last year Marubeni and IBRA signed a MoU on June 9 last
year. According to the agreement, Marubeni would convert about
US$ 100 million of its loan into equity in Chandra Asri. The
Japanese giant also agreed to provide Chandra Asri with 12 years
to repay its foreign debt with an interest rate of 2.5 percentage
points above the London Interbank Offering Rate (LIBOR).

Chandra Asri owes around $700 million to a foreign consortium led
by Marubeni, including the Bank of Tokyo, Mitsubishi Bank and
Fuji Bank.

Marubeni's partners in the joint venture are Sowa Denko and NEC.


PT TJIWI: To Make US$13.25M Payment
-----------------------------------
PT Pabrik Kertas Tjiwi Kimia, a unit of US-listed Asia Pulp &
Paper Co, is not in danger of defaulting because it will make a
US$13.25 million payment by the end of the month to bondholders,
The Business Times reported on February 14.

Tjiwi was able to make a US$30 million bond payment last week,
three working days after it was originally due and two days
before a grace period expired.

Standard and Poor's upgraded the company's credit rating to
"selective default" from "default" after that payment.

"Tjiwi Kimia will make US$13.25 million payment within 30 days of
the original due date of Feb 1," the company said in a statement
to the Jakarta Stock Exchange.

Asia Pulp's struggle to service nearly US$12 billion in debt --
166 times its market value -- has muddied the outlook for Tjiwi
Kimia and its sister company, PT Indah Kiat Pulp & Paper.


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

INTERNET INITIATIVE:  Expects Long term Losses
----------------------------------------------
Internet Initiative Japan Inc (IIJ), an Internet Web service
provider, said on Wednesday its revenue in the latest quarter
grew by nearly one-third on better corporate demand but it still
expects near-term losses, according to the Wednesday issue of
Reuters.

Revenue at Japan's ninth-largest Internet service provider for
the October-December period grew 29.8 percent from a year earlier
to 7.32 billion yen ($62.67 million). Its net loss was 979
million yen, or 21.78 yen ($0.187) per share, better than a loss
of $0.37 projected by Ace consensus estimates. In the same period
a year earlier its net loss was 1.15 billion yen on revenue of
5.64 billion yen.

IIJ said it expects to post a net operating loss of 480-300
million yen on revenue of 8.5-9.5 billion yen in the fourth
quarter, which ends on March 31.

Yasuo Nishi, chief financial officer, blamed the losses on bigger
system integration projects for corporate clients.

"We are, however, working to close most of the deferred
transactions and are confident that we will meet our revenue
target for the fourth quarter," he said.


NIIGATA CHUO BANK:  Four Execs Charged
---------------------------------------
Four former executives of failed Niigata Chuo Bank will be
charged with aggravated breach of trust under the Commercial
Code, Yomiuri Shimbun reported on Monday.

The Financial Reconstruction Law requires that efforts be made to
prosecute for criminal negligence the management held responsible
for bank failures.

Bankruptcy administrators investigating Niigata Chuo Bank have
accused former President Ryutaro Omori of running the bank like a
personal fiefdom.

Niigata Chuo Bank, they say, lent money to projects that included
the construction of a theme park that Omori had a personal
interest in. The administrators called such loans the "Omori
case."

With the expiration of the Financial Reconstruction Law at the
end of March, the Deposit Insurance Law will take over the
responsibility of extending public funds to bail out failed
financial institutions.


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

DAEWOO MOTOR:  Revamps Overseas Operations
------------------------------------------
Daewoo Motor will revamp its overseas operations as part of its
streamlining measures following the three-week shutdown of its
main domestic plant in Pupyong because of pressures to stay
afloat by itself, Hong Kong Imail reported on Tuesday.

Shin Kook Hwan, Minister of Commerce, Industry and Energy,
stressed the reorganisation of overseas operations is crucial to
streamlining Daewoo Motor's business and boosting its
competitiveness. She said a due diligence survey will be
undertaken on Daewoo Motors' overseas operations, covering 31
sales firms and 15 factories.

The firm's annual production capacity includes 1.06 million
vehicles in South Korea and another 875,000 in plants in Poland,
Romania, the Czech Republic, Uzbekistan, Ukraine, India, Iran,
Libya, Vietnam, China and Egypt.


HANBO STEEL: A.K. Capital Signals Interest
------------------------------------------
A.K. Capital consortium is optimistic that it will be able to
raise $750 million by obtaining loans from banks, issuing
subordinated bonds needed to purchase Hanbo Steel Co, according
to the Wednesday issue of Korea Herald.

Kwon Ho-sung, head of A.K. Capital, said the consortium has
received a letter of intent from a foreign insurance company
promising to supply $300 million, adding that it will raise $250
million from local and foreign investors.

He is opposed to selling the company by parts because it will end
up a lower price. Hanbo's main creditor, Korea Asset Management
Corp. (KAMCO), has been advocating a sale of Hanbo's plants in
Tangjin on the western coast in separate parts.

Kwon is convincing KAMCO that open bidding is preferable and they
will participate. A.K. Capital will not be given exclusive
negotiations.

Suh Yong-sok, a KAMCO official, said that on last Dec. 1, A.K.
Capital outlined to KAMCO officials its plan to acquire Hanbo but
that the plan was vague on financing and lacked a profit model.

Stressing that Hanbo will be sold off through open bidding to
ensure transparency in the sales process, Suh said A.K. Korea
will not be allowed to conduct due diligence exclusively.


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

GADEK BHD.:  Creditor Demands Payment
-------------------------------------
Gadek (Malaysia) Bhd. said one of its creditors has demanded a
sum of repayment relating to its credit facilities, but the
company has to date not been served with documents of legal
proceedings, the Star On Line reported on Wednesday.

Commerce International Merchant Bankers Bhd (CIMB), the agent and
security agent in connection with Gadek's guarantee facility
agreement and its security sharing agreement, demanded payment on
January 23 from Gadek of cash collateral worth RM728.6 million.

Gadek said both agreements were dated March 18, 1996, and were
executed between it, CIMB and the guarantor banks.


MALAYSIAN RESOURCES: Selects PricewaterhouseCoopers
---------------------------------------------------
Malaysian Resources Corporation Bhd has selected accountant
PricewaterhouseCoopers to undertake a restructuring exercise for
the group and its publishing and electronic units, according to
the Wednesday issue of the Edge Daily.

MRCB hopes the move will put the group on a better financial
footing and solve its financial problems. MRCB's latest annual
report revealed that the group has debts of RM1.51 billion for
the year ended Aug 31, 2000, while NSTP's debt amounted to some
RM345 million.

Datuk Seri Abdul Rahman Maidin, MRCB president, said there was a
need to restructure the internal organization, streamlining it
into an efficient and resilient entity in responding to future
challenges.

MRCB may also rationalise its workforce as it streamlines its
businesses. The staff of two units involved in trading of
building materials and quarry activities have been affected by
the closure of the two subsidiaries.


MAYBANK:  Lays Off 1,000 Workers
--------------------------------
Malaysia's largest banking group plans to lay off 1,000 workers
or 5 percent of its banking staff, and close 60 of its 450
branches as part of a rationalization exercise, according to the
Wednesday issue of Channelnewsasia.

Following its merger with Pacific Bank and Phileo Allied Bank,
Maybank's earnings for the six months ending December 31, 2000,
came in at 701 million ringgit, in line with analysts' forecasts.

Loan growth almost doubled the industry average at 12.6 percent.

Despite the slowdown in Malaysia's economy, Dr Amir Sham Aziz
says there is enough momentum to make sure loans continue to grow
at 12 percent per year.

The Chief Executive Officer of Maybank said, "The momentum in
loan growth should be sustained for three to six months."

The merger is expected to cost 100 million ringgit and will be
provided over as a one-time cost over two years.


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

BW RESOURCES:  Gov't. Bars Exec From Leaving
--------------------------------------------
On Wednesday the Bureau of Immigration and Deportation (BID)
included BW Resources owner Dante Tan in its hold departure list,
the ABS/CBN News Channel reported on Wednesday. BID commissioner
Andrea Domingo said the hold departure order was issued following
the receipt of a notice from the Department of Justice.

Justice Secretary Hernando Perez said Tan could not leave the
country because he is vital in pursuing the plunder cases filed
against former president Joseph Estrada.

Estrada is at present facing eight plunder cases before the
office of the Ombudsman (a graft investigative body for public
officials).


WESTMONT INVESTMENT:  SEC Pursues Charges on Exec
-------------------------------------------------
The Securities and Exchange Commission (SEC) says it will pursue
a case against the former chairman of Westmont Investment Corp.,
John Espiritu, according to the Wednesday issue of the Philippine
Daily Inquirer.

The SEC has accused Espiritu, son of former Finance Secretary
Edgardo Espiritu, and Wincorp directors Henry Cua Loping, Simeon
Cua, Manuel Tankiansee and Alfonso Reyno III, in a fraudulent
investment scheme. They allegedly enticed a thousand investors to
place some P7 billion that Wincorp then re-signed to companies
owned by the younger Espiritu and his father's associates. These
companies have since defaulted on the loans.

Espiritu has claimed in a counter-affidavit filed with the
Department of Justice that he did not know about the investment
scheme and so could not be held liable for it.

"Only corporate officers shown to have participated in or
assented to the commission of the alleged illegal acts can be
made answerable for alleged criminal violations of the
corporation," said Espiritu.

Wincorp president and director Antonio Ong has admitted that
Wincorp is 99 percent owned by Unioil Resources and Holdings Co.
Inc. and that 82 percent of Unioil's stockholders are also
borrowers of the company.

"Undeniably, the beneficial owners of respondent Wincorp are the
very borrowers to which Wincorp lent the monies it collected from
the unwitting investors," the SEC responded. "This definitely
demonstrates that respondent Wincorp did not act on behalf of its
investors but rather for the benefit of its beneficial owners."


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

CAPITALAND LTD.:  Post S$287M Loss
----------------------------------
CapitaLand Ltd, Singapore's largest listed property group, has
posted a bottomline loss of S$287 million on higher interest
expenses of S$433 million, according to the Wednesday issue of
the Star On Line.

CapitaLand said it was optimistic about its prospects for the
current year and pledged to improve its balance sheet and capital
structure. Revenue increases came from improved contributions
from its commercial, residential, hotel and serviced apartment
units.

CapitaLand, the region's largest property group with some S$18bil
in assets, said the hefty extraordinary losses were due to
provisions for the group's overseas hotels and assets. These
included a write down of S$131.4mil for three overseas hotels and
provisions of S$83.2mil for its investment properties in
Indonesia and China.

The group also made additional provisions of S$195.8mil for an
investment in hospital group Parkway Holdings, which it plans to
sell, and Vista Healthcare.


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

EASTERN WIRE:  Submits Reorganization Plan
------------------------------------------
Eastern Wire Public Co. Ltd. has submitted a revised
reorganization plan but has yet to receive approval from
creditors.

In a report to the Stock Exchange of Thailand dated February 9,
Phiraphan Phalasuk, representing Effective Planners, said there
would be a hearing at the Central Bankruptcy Court on March 9.

Total assets stood at Bt723.75 million while liabilities was
Bt1.98 billion for last year ending September. The net loss was
Bt274 million.


NATIONAL FERTILIZER:  Ministry Approves Price Increases
-------------------------------------------------------
The Commerce Ministry has approved the request of National
Fertlizer Plc to raise fertlizer prices by Bt500 per ton,
according to the Wednesday issue of the Bangkok Post.

Cherdpongse Siriwich, chairman of the NFC board committee said
the department acknowledged that the state-owned company was
likely to face severe liquidity problems unless prices were
adjusted. He said market prices of fertilizer currently averaged
Bt6,500 per ton, but NFC sold the product at only Bt6,000.

National Fertilizer Plc. is suffering an acute liquidity problem
caused by bad investments and will need Bt1.3 billion in working
capital next year to buy raw materials and other essential items
for fertilizer production.

In 1998 the company incurred accumulated losses of Bt7.38 billion
in order to subsidize fertilizer prices.



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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DC USA. Lexy Mueller, Managing Editor, James Philip P.
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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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