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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

                 Friday, February 23, 2001, Vol. 4, No. 38

                               Headlines


A U S T R A L I A

INFOSENTIALS:  Liquidation Forthcoming
MAXIS:  ASIC Seeks Receivers Appointment
WATER WHEEL:  Three Directors Charged


C H I N A  &  H O N G  K O N G

DIAMOND CHANCE Ltd.:  Facing Winding Up Petition
VINLINK TRADING Ltd.:  Facing Winding Up Petition
WAH LEE:  Failed to Pay HK$55M Bond


I N D O N E S I A

PT BARITO:  Defaults on Bond Payments


J A P A N

HIKARI TSUSHIN:  Suffers First Net Loss
PHOENIX RESORT:  Asks Court for Protection on 272B Yen Debt


K O R E A

DAEWOO GROUP:  34 Execs Indicted
HANIL LIFE:  Fails to Attract Investors
HYUNDAI LIFE:  Fails to Attract Investors
SAMSHIN LIFE:  Fails to Attract Investors
SAMSUNG HEAVY:  Expects 220B Won Net Loss


M A L A Y S I A

FIRST MALAYSIA:  Posts RM4.93M Loss
LION GROUP:  Debt Restructuring Progressing


P H I L I P P I N E S

ALL ASIA:  IFC Rejects Buy Back Agreement
PILTEL:  Refutes SEC Findings


S I N G A P O R E

LERNHOUT & HAUSPIE:  Placed Under Judicial Management


T H A I L A N D

INTER FAR EAST:  Submits Reorganization Plan
SAVING CREDIT:  Closure Ordered


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

INFOSENTIALS:  Liquidation Forthcoming
--------------------------------------
Infosentials, an Australian Internet and media company, is
endangered of being liquidated and a rescue package is being
worked out, according to the Tuesday issue of the Age.

Paul Stewart, in his letter on February 19, said an unnamed
company is interested in the firm once it is recapitalized and
reorganized. Michael Schildberger, founder, remains confident
that the firm can come up with a rescue plan.

Infosentials reported a loss of $9.4 million for 2000 on
operating revenue of $11.7 million.


MAXIS:  ASIC Seeks Receivers Appointment
----------------------------------------
The Australian Securities and Investment Commission (ASIC) has
asked the Supreme Court of New South Wales to appoint a receiver
for technology firm Maxis Corporation to protect the interests of
investors and creditors, Fairfax I.T. reported on Tuesday.

ASIC is reportedly suspicious that Maxis has engaged in insolvent
trading offences and improper management.

In a letter to the Australian Stock Exchange on February 19, the
new management asked that its shares suspension be lifted. It
asserts that the firm is now solvent.

This is in contrast to the fact that two of its subsidiaries,
Australian Business Technologies and Heartland Communications,
have been placed in voluntary administration.


WATER WHEEL:  Three Directors Charged
-------------------------------------
Three Water Wheel directors will be fined A$5 million for
engaging in illegal trade despite having been declared insolvent
on February 2000, the Australian Financial Review reported on
Tuesday.
  
John Elliott, Bernard Plymin and William Harrison, directors of
troubled rice milling company Water Wheel, were forewarned by the
firm's financial controller, Stephen Nankervis, in March 1999.

As early as August 13, 1999, William Harrison, Water Wheel
chairman, requested the appointment of an administrator.

Unsecured creditors have debts to Water Wheel worth A$21 million.
The company reported a net loss of A$6.84 million for the year to
December 1999.


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

DIAMOND CHANCE Ltd.:  Facing Winding Up Petition
------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance has
scheduled a hearing on April 11 on the petition of  Hui Lai Mei  
for the winding up of Diamond Chance Ltd. A Notice of legal
appearance must be filed on or before April 10.


VINLINK TRADING 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 of Yeung Kwok
Ming for the winding up of Vinklink Trading Ltd. A Notice of
legal appearance must be filed on or before March 27.


WAH LEE:  Failed to Pay HK$55M Bond
-----------------------------------
Wah Lee Resources Holdings Ltd., an investment holding company,
has failed to pay its wholly owned unit, Way Forward Consultants
Ltd., principal on its series B HK$55 million guaranteed secured
zero coupon convertible bonds that fell due on Janaury 29.

Yeung Ming-kwong, Wah Lee resources chief executive, said they
are negotiating with bondholders for restructuring repayment
terms and are looking for new investors to settle its financial
problems, Quamnet News Service reported on Saturday.

Wah Lee shares were suspended on February 5 when they traded at
2.8 HK cents.


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

PT BARITO:  Defaults Bond Payments
----------------------------------
PT Barito Pacific Timber (BRPT) has defaulted on payment of
interest for its seventh bond because it has not performed as
expected. Yohannes Hardiyan, president director of Barito
Pacific, said the company failed to meet 2000 operating income
and can pay only its short-term debts, according to Wednesday's
issue of Indoexchange News.

The repayment for US$22 million loans in Bank Mandiri was
extended to 2006 as part of a debt-restructuring agreement.

Slow sales were attributed to the riots in Sidangoli, Halmahera
Island, North Maluku where it has plywood factories and which
contribute 24 percent of Barito's sales, he said.

Yohannes said the firm is making progress in its negotiations
with bondholders of its RP400 billion bonds.


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

HIKARI TSUSHIN:  Suffers First Net Loss
---------------------------------------
Hikari Tsushin Inc., a Japanese Internet service operator, has
posted its first net loss since starting in 1996, blaming the
failure of its Web startups. The Japanese Internet operator had a
net loss of 30.63 billion yen for the year ending in August,
Reuters reported on Tuesday.

According to Hiromi Abe, an analyst at Morgan Stanley Dean
Witter, the firm discovered the losses while revising its
accounting rules.

Last week, the firm's Web page management unit was liquidated,
costing the firm five billion yen.


PHOENIX RESORT:  Asks Court for Protection on 272B Yen Debt
-----------------------------------------------------------
Phoenix Resort Ltd., a Japanese resort hotel operator, has sought
court protection from creditors, with 272.2 billion yen in
liabilities, according to a Dow Jones report on Monday.

The Japanese resort operator had been hit badly since 1999
because of financing and a decrease in the number of visitors. It
had already asked its creditors for more time to pay its debt as
part of a restructuring agreement.

Phoenix is the owner of the Seagaia resort complex in Miyazaki
Prefecture, which served as the venue for the Group of Eight
nations' convention last year.


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

DAEWOO GROUP:  34 Execs Indicted
--------------------------------
34 Daewoo Group executives were indicted on February 19 for
creating a multibillion-dollar illegal fund, The Asian Wall
Street Journal reported on Tuesday.

Indicted and arrested were Chang Byong Joo, former president of
Daewoo Corp., five other former presidents of the company and an
accountant. They are accused of raising the fund through the
conglomerate's London office between 1997 and 2000. The
executives were charged with fraud and violation of foreign
exchange laws.

According to prosecutors, Daewoo took out illegal foreign-
exchange loans and pooled funds amounting to US$20.11 billion
from its subsidiaries by falsifying documents. Part of the money,
US$8 billion, was placed into the illegal fund.


HANIL LIFE:  Fails to Attract Investors
-----------------------------------------
The Financial Supervisory Commission says Hanil Life Insurance
Co. has failed to attract investors by the February 17 deadline.
The government is instead considering a transfer of contracts
from Hanil Life to an interested buyer, according to the Tuesday
edition of the Korea Herald.

Korea Life Insurance may have to take over the remaining
contracts or give them to a government financial holding firm.


HYUNDAI LIFE:  Fails to Attract Investors
-----------------------------------------
The Financial Supervisory Commission says Hyundai Life Insurance
Co. has failed to attract investors by the February 17 deadline.
The government is instead considering a transfer of contracts
from Hyundai Life to an interested buyer, according to the
Tuesday edition of the Korea Herald.

Korea Life Insurance may have to take over the remaining
contracts or give them to a government financial holding firm.


SAMSHIN LIFE:  Fails to Attract Investors
-----------------------------------------
The Financial Supervisory Commission says Samshin Life Insurance
Co. has failed to attract investors by the February 17 deadline.
The government is instead considering a transfer of contracts
from Samshin Life to an interested buyer, according to the
Tuesday edition of the Korea Herald.

Korea Life Insurance may have to take over the remaining
contracts or give them to a government financial holding firm.


SAMSUNG HEAVY:  Expects 220B Won Net Loss
-----------------------------------------
Samsung Heavy Industries Co., South Korea's second-largest
shipbuilder, is projecting a net loss of 220 billion won for last
year mainly due to the liquidation of its parent firm, Samsung
Commercial Vehicle Co, The Asian Wall Street Journal reported on
Monday.

Samsung Heavy's sales dipped to 3.55 trillion won last year from
3.7 trillion won in 1999 mainly because it has separated its
engine facilities where it sells power-generating facilities to
Korea Heavy Industries & Construction Co.  

In 1999, the company posted a net profit of 8.5 billion won.


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

FIRST MALAYSIA:  Posts RM4.93M Loss
-----------------------------------  
First Malaysia Property Trust posted a RM4.93 million loss for
its financial year ended Dec. 31, 2000, before taxation, minority
interests, and extraordinary items were deducted, according to
the Wednesday issue of the Star On Line.

The loss was lesser that the previous year of RM5.38 million.
Turnover also decreased to RM3.09 million from RM3.17 million
from the previous year. First Malaysia made a loss before
taxation of RM690,000 on turnover of RM748,000 in the fourth
quarter.


LION GROUP:  Debt Restructuring Progressing
-------------------------------------------
Lion Group is moving smoothly with the disposal of non-core
assets as part of its RM5.9 billion debt-restructuring exercise.
This will involve an asset swap by its subsidiary, Johor Corp.,
and Amsteel Corp. for RM108.23 million in inter-company debt,
Business Times reported on Saturday.

Amsteel Corporation says it intends to swap its 100 percent stake
in property developer Lion Gateway Parade and 60 percent interest
in hospital operators Excellent Strategy Sdn Bhd with Johor
Corporation's 100 percent interest in Antara Steel Mills. Amsteel
Corporation will then sell Antara Steel to Amsteel Mills as
repayment for the inter-company debt owed.

If the restructuring succeeds, Lion Group can dispose of some RM2
billion worth of non-core assets, mainly properties, to repay
creditors.

The plan last year initially had generated opposition from
shareholders because they feel their shares maybe diluted.


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

ALL ASIA:  IFC Rejects Buy Back Agreement
-----------------------------------------
The International Finance Corp. (IFC), the World Bank's
investment arm, has rejected the buy-back agreement with respect
to All Asia Capital & Trust Corp.'s P800 million debt settlement.
All Asia failed to pay its debts six months after its financial
problems were made public, according to the Wednesday issue of
the Philippine Daily Inquirer.

Francisco del Rosario, All Asia's outgoing president, said they
are still negotiating with the IFC and will not be dragged to
court. The report says All Asia will most likely be liquidated
because of the IFC rejection. Meanwhile, Vipul Prakash, the IFC's
mission chief, admitted that they are studying liquidation as an
option. The IFC has extended US$17 million in loans to All Asia.

All Asia started as a one-product lease financing company in
1980. It has grown into a major player in the financial sector as
its interests widened into stock brokerage, life insurance,
venture capital, strategic investments, pre-need services, mutual
funds and utilities.

The company's financial problems started when corporate clients,
who got jittery after the collapse of Urban Bank and its
investment house, pre-terminated their placements, causing a cash
squeeze in All Asia last year.


PILTEL:  Refutes SEC Findings
-----------------------------
Pilipino Telephone Corp. (Piltel) and parent firm Philippine Long
Distance Telephone Co. (PLDT) "completely refuted" the initial
findings of the Securities and Exchange Commission (SEC)
regarding misleading 1998 financial statements.

The SEC's initial findings concluded Piltel did not promptly
disclose its financial position to qualify for a suspension of
debt payments, BusinessWorld reported on Wednesday.

PLDT pointed out that the new management of Hong Kong-based First
Pacific Group was not responsible since it only came November
1998. Manuel V. Pangilinan, PLDT president and chief executive
officer, said Pilel's management was immediately reorganized when
they took over control in January 1999. The new management then
initiated a review of Piltel's financial position.

In the 1998 Piltel financial report, auditors revealed that it
suspended all principal payments to lenders, that the company had
continued to report significant losses and that there were
"substantial doubts as to Piltel's ability to continue as a going
concern."


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

LERNHOUT & HAUSPIE:  Placed Under Judicial Management
-----------------------------------------------------
The Singapore arm of Belgian speech technology products firm
Lernhout & Hauspie (L & H) has been placed under judicial
management by the High Court on reports of financial
irregularities, according to the Tuesday issue of Business Times.

Judith Prakash, High Court judge, was acting on the petition
filed by Rajah & Tann in behalf of the directors while placing
L&H under the judicial management of Nicky Tan, Steven Lim and
Tham Chee Chong. The firm owes its Belgian parent firm, L&H
Speech Products NV, US$80 million.

Capital Union, a Bahrain-based investment bank, ordered US$10
million of language software program in Arabic, which L&H Asia
failed to deliver. The firm initially filed opposition to placing
L&H Asia under judicial management but later withdrew.

The firm's workforce has been reduced from 70 to 20 and expects
revenue of US$4 million this year.

Judicial managers hope to restructure the Singapore operation in
the next six months.


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

INTER FAR EAST:  Submits Reorganization Plan
--------------------------------------------
In a letter to the Stock Exchange of Thailand on February 19,
Wattana Limnararat of Arthur Andersen, appointed planner, said
Inter Far East Engineering would meet with creditors to discuss
the company's reorganization on February 23.

The office equipment distributor has total assets of Bt1.09
billion and total debts of Bt1.835 billion up to September of
last year. Its net loss stood at Bt118.95 million.


SAVING CREDIT:  Closure Ordered
--------------------------------
Regulators will close Saving Credit Foncier Co. after the credit
company posted losses for the past three years, according to the
Saturday issue of the Bangkok Post. Regulators have ordered
Saving Credit to dispose of its assets and pay its depositors and
creditors 30 days after the filing of claims.

According to central bank records, the total claims stood at
Bt758.9 million from more than 300 depositors. These depositors
will be paid at the average three-month fixed deposit rates plus
six percentage points, or around 9 percent. Creditors will also
be repaid with interest four percentage points lower than the
prime lending rates.

The firm had Bt835 million in assets as of December last year and
an accumulated loss of 291.2 million for the past three years.

Bandid Nijathaworn, an assistant central bank governor, said the
credit company did not meet a 50 percent paid-up capital
requirement.



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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