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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

            Wednesday, February 21, 2001, Vol. 4, No. 36

                             Headlines


A U S T R A L I A

BELL GROUP:  Pursues Bankers
MAXIS:  Goes Into Voluntary Administration


C H I N A  &  H O N G  K O N G

CONCORD RISE INTERNATIONAL Ltd.:  Facing Winding Up Petition
HONKO INTERNATIONAL:  Pacific Annex Takes Majority Shareholding
KIN DON HOLDINGS LIMITED:  Facing Winding Up Petition
PO KAN PRECISION INDUSTRIAL Ltd.:  Facing Winding Up Petition
TENNIC (CHINA) Ltd.:  Facing Winding Up Petition


I N D O N E S I A

PT ASIANA MULTIKREASI:  Banks Agree to Remove Interest


J A P A N

DAIHYAKU:  Transfers Life Policies to Manulife
KANSHINKO:  South Korea Gov't. Gives Funds


K O R E A

DAEWOO MOTOR:  Negotiations Failed; Strike Eminent
KOREA TELECOM:  May Issue Depository Receipts


P H I L I P P I N E S

CAPITOL WIRELESS:  Court Approves Debt Agreement
URBAN BANK:  Bancommerce Given Until Feb. 21


S I N G A P O R E

WINDSOR NURSING:  Court Orders Dissolution


T H A I L A N D

BANGCHAK PETROLEUM:  Blames Government Manipulation for Losses
THAI PETROCHEMICAL:  Court Approves Capital Hike Plan
THORNBURI:  Court Accepts Restructuring Plan


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

BELL GROUP:  Pursues Bankers
----------------------------
The Bell Group, owned by Allan Bond, will pursue the firm's
former bankers for A$1 billion in compensation as the new Western
Australian government prepares to review its case, according to
the Saturday edition of the Australian Financial Review.

As of February 2001, Bell Group through the Insurance Commission
has already spent A$60 million for litigation.

The Commission has taken out an A$7 million insurance policy to
underwrite the cost if it loses the case.


MAXIS:  Goes Into Voluntary Administration
------------------------------------------
Maxis Corp., a technology company, was placed into voluntary
administration in mid-February, the Australian Financial Review
reported on Friday. All board members but one have resigned.

Heartland, a Maxis communications project with the Australian
Government, may not be finished if it cannot raise the necessary
funds.

Last month Maxis placed two of its subsidiaries -- Australian
Business Technologies and the Heartland Communications -- into
liquidation.

The firm's share price has plunged by 60 percent to A$0.032 per
share.


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

CONCORD RISE INTERNATIONAL 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 of Po Sang Bank
Limited for the winding up of Concord Rise International Ltd. A
Notice of legal appearance must be filed on or before March 13.


HONKO INTERNATIONAL:  Pacific Annex Takes Majority Shareholding
---------------------------------------------------------------
Shares of Honko International Holdings Ltd. will be withdrawn
from the stock market and a new company established after Honko
completes a restructuring that will make Pacific Annex Capital
Ltd. its majority shareholder, AFX reported on Friday.

Pacific Annex Capital will hold a 50.29 percent stake in the new
company before the conversion of the proposed convertible shares.

A total of HK$91.6 million will be raised for the new company
following the restructuring.

The new company will transfer about HK$32.1 million to the group
to repay certain debts, including HK$1.7 million to secured
finance lease creditors, about HK$1.7 million to CCT Strategies
Holdings Ltd and about HK$28.7 million to unsecured creditor
banks.

The remaining HK$59.5 million will be used as working capital for
the new group.

After the repayments, the group will owe a total of HK$13.6
million, which will be settled in installment payments.


KIN DON HOLDINGS LIMITED:  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 of Stone
Church LLC for the winding up of Kin Don Holdings Ltd. A Notice
of legal appearance must be filed on or before February 27.


PO KAN PRECISION INDUSTRIAL 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 of Lee Kwok Keung
for the winding up of Po Kan Precision Industrial Ltd. A
Notice of legal appearance must be filed on or before March 13.


TENNIC (CHINA) Ltd.:  Facing Winding Up Petition
------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance has
scheduled a hearing on April 4 on the petition of Kwok Yat Fan
for the winding up of Tennic (China) Ltd. A Notice of legal
appearance must be filed on or before April 3.


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


PT ASIANA MULTIKREASI:  Banks Agree to Remove Interest
------------------------------------------------------
PT Aisna Multikreasi, a toy and accessories manufacturer, has
agreed in principle to the rescheduling of US$6 million in debt
payments excluding US$500,000 in interest, according to the
Friday issue of the Indoexchange News.

Bank Indover Asia Ltd., the main creditor, has agreed to
reschedule payment because the firm is optimistic that it can
improve its performance in spite of the sluggish economy,
Asiana's Chief Director M. Ramdani Basri said in its report to
Jakarta Stock Exchange.

The work force will be reduced and the offices transferred from
gajah Mada Tower, Jakarta to the factory location in Jatimulya.


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

DAIHYAKU:  Transfers Life Policies to Manulife
----------------------------------------------
Daihyaku Mutual Life Insurance Co. will liquidate itself after
finalizing the transfer of its life insurance policy contracts to
Manulife Century Life Insurance Co. on April 2, Jiji Press
English News Service reported on Thursday.

The failed insurance firm made the decision on February 15 based
on a deficit of 320 billion yen as of end-September. The payout
decreased to only 292 billion yen but will be covered by Life
Insurance Policyholders Protection Corp., the industry's safety-
net body.

Manulife Century, a subsidiary of Canada-based Manulife Financial
Corp., is scheduled to take over Daihyaku's operations worth 147
billion yen.


KANSHINKO:  South Korea Gov't. Gives Funds
------------------------------------------
The Association of Korean Credit Cooperatives (Kanshinkyo) will
receive 33.6 bilion yen from the South Korean government in
rescue funds to continue serving Korean residents in Japan after
merging into a new bank, the Japan Times reported on Saturday.

Since the new bank might not be able to takeover the assets and
liabilities of 19 failed credit unions, Kanshinkyo asked the
South Korean government to inject funds instead.

The South Korean government will convert its deposits in various
credit unions into capital. In return it wants the new bank to
increase it initial capital and be allowed to clean up the bad
debts.

It will be the first time a foreign government has come to the
rescue of a Japanese financial institution.

At a meeting in Tokyo, representatives from the South Korean
Embassy in Japan conveyed their government's intention to
Kanshinkyo, the Korean Residents Union in Japan and the South
Korean Chamber of Commerce in Japan.

Kansai Kogin and Tokyo Shogin were declared insolvent Dec. 17 by
the Financial Reconstruction Commission, which sent
administrators to the two credit unions, believing they were
severely undercapitalized following massive loan losses.


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

DAEWOO MOTOR:  Negotiations Failed; Strike Eminent
--------------------------------------------------
Daewoo Motor management and labor unions broke off negotiations
on February 16 to avert a strike jeopardizing the rehabilitation
plan and planned sale to General Motors, the Korea Herald
reported on Monday.

Labor union leaders had vowed to mobilize workers to oppose the
1,750 job cuts at Daewoo's main car plant in Pupyong, west of
Seoul, which was the first step to hasten the sale to GM.

After the negotiating failed on Friday, union workers and their
families staged a rally at the Pupyang plant. The Changwon and
Kunsan plants were not affected by the strike since the plants
were not affected by the manpower reduction.

The 1,750 job cuts will realize a savings of 200 billion for
Daewoo Motor; a total of 6,884 job cuts is expected. The survival
of Daewoo Motor and sale to GM will depend on the success of the
payoffs, according to the creditors.


KOREA TELECOM:  May Issue Depository Receipts
---------------------------------------------
The South Korean government may issue depository receipts (DRs)
to interested domestic and foreign investors for a 16 percent
stake in Korea Telecom (KT), the Korea Herald reported on Monday.

Currently, the ministry holds a 57.9 percent stake in KT and
plans to dispose of a 15 percent stake to foreign companies
through strategic alliances. The government is studying giving
discounts based on the length of stock possession.

If the government's entire stake is sold by June it will be worth
10 trillion won.


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

CAPITOL WIRELESS:  Court Approves Debt Agreement
------------------------------------------------
Capitol Wireless Inc. (Capwire) has received court approval for
its debt-restructuring plan calling for the resumption of
interest payments, according to the Saturday issue of the
Philippine Daily Inquirer.

Joel Aguilar, Capwire chief finance officer, said they had
already informed creditors of the court's decision so that they
will not move to foreclose the firm.

"The court has reviewed the agreement in January and found
nothing wrong," said Aguilar. "So we advised our creditors that
an order from the court is out already. By March we would start
servicing interest payments after the signing of the debt service
agreement."

The trustee bank will be United Overseas Bank (formerly Westmont
Bank).

Capwire was only able to pay P18 million for the interest charge
for loans due on June 2000. However, Capwire has yet to pay
interests due December 2000.

Capwire's creditors and their respective loans are Land Bank of
the Philippines, P391 million; Development Bank of the
Philippines, P190 million; Philippine National Bank, P153
million; and Urban Bank, P133 million.

Other creditors include Far East Bank and Trust Co., Metropolitan
Bank and Trust Co., PCIBank, Westmont Bank and Manulife Inc.


URBAN BANK:  Bancommerce Given Until Feb. 21
--------------------------------------------
The Philippine Deposit Insurance Corp. (PDIC), the state-owned
bank insurer, has given Bank of Commerce (Bancommerce) until
February 21 to pursue merger plans with Urban Bank Corp., the
Philippine Daily Inquirer reported on February 17.

Raul de Mesa, Bancommerce president, said they are rethinking the
merger because of a controversy involving the withdrawal of
P143.7 million from Urban Bank two days before it was declared a
bank holiday.

Businessman Antonio "Tonyboy" Cojuangco and the College Assurance
Plan group control Bank of Commerce.

Norberto Nazareno, PDIC president, has presented another option
whereby large depositors would convert their deposits into
equity. This would include Petron Corp. and San Miguel Corp. with
P1 billion each and Manila Electric Co. with P500 million.

The third and unpopular option, said Nazareno, would be to
liquidate Urban Bank.


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

WINDSOR NURSING:  Court Orders Dissolution
------------------------------------------
Overseas-Chinese Banking Corp. (OCBC) received court approval to
dissolve Windsor Nursing Holdings on February 18 in order to
appoint a liquidator to pay off debts amounting to S$4.5 million
after nine months of litigation, the StraitsTimes reported on
Thursday. The firm is owned by Loo Choon Beng.

OCBC demanded payment of its debts as early as May of last year
but Windsor has not made any payments since then. A 45-day
extension has passed and OCBC has begun procedures to sue Loo
Choon Beng.

Last October, the bank's lawyers, Mr Hri Kumar and Mr Ajay
Advani, filed a winding-up petition. Before it was heard, the
company told the bank several times that it had obtained
financing from other banks, but it did not respond when OCBC Bank
asked for proof.

In a hearing before Judicial Commissioner Choo Han Teck in
February, the company's lawyer said an affidavit had just been
filed stating that it had obtained an 'in-principle' approval
from Sing Investments Finance to refinance the company. But Kumar
said the finance company's offer was conditional.

Windsor Nursing Holdings argued that the petition should be
dismissed as the bank could sell the Siglap property for which it
was mortgagee.


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

BANGCHAK PETROLEUM:  Blames Government Manipulation for Losses
--------------------------------------------------------------
Bangchak Petroleum Plc. has blamed the government for its two-
year loss of Bt3.3 billion, the Bangkok Post reported on Monday.
The oil refiner posted losses of Bt1.55 billion in 2000 and
Bt1.78 billion the preceding year fiscal year.

Yenjai Laohavanich, managing director of ECCO (Thailand), said
the Bangchak Lovers' Club, an organization opposed to selling the
company to foreign interests, has demanded to know whether the
government's actions have caused the losses. He said the
government could have driven the firm to losses to convince the
foreign investors to buy.

"The loss last year was caused mainly by uncontrollable factors.
The state policy to freeze local oil prices despite the surge in
international market prices is one significant reasons," said
Bangchak Petroleum president Sirichai Sakornratanakul. Bangchak
was selling diesel oil at a loss exceeding Bt2 per liter for the
past months.


THAI PETROCHEMICAL:  Court Approves Capital Hike Plan
------------------------------------------------------
The Central Bankruptcy Court on February 14 approved a capital
increase for Thai Petrochemical Industry (TPI) in order to
implement a debt-equity conversion, AFX reported on Thursday.

Under the restructuring plan, about US$720 million in TPI's
accumulated unpaid interest will be converted to 75 percent
equity and held by its creditors. The company will then issue
5.85 billion in new shares.


THORNBURI:  Court Accepts Restructuring Plan
--------------------------------------------
The Central Bankruptcy Court accepted a restructuring plan of
Thornburi Automotive Assembly Plant on February 14 with five
objections from creditors.

Revenue and Excise departments, Thai Military Bank and Summit
Auto Service Co. will still have a chance to explain their
objections during the next hearing on February 23, the Bangkok
Post reported on Thursday.

The rehabilitation plan will involve writing off Bt3.97 billion
in debt while Bt4.47 billion will be converted into equity with
creditors controlling 73 percent. The remaining debt of Bt17.3
billion will be repaid over 10 years.



S U B S C R I P T I O N  I N F O R M A T I O N

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