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                        A S I A   P A C I F I C

                 Thursday, March 1, 2001, Vol. 4, No. 42

                               Headlines


A U S T R A L I A

FRANKLINS:  Continues to Loose
HIH INSURANCE:  Director Quits on Huge Losses
PROPERTY.COM.AU:  Sold for A$3M


C H I N A  &  H O N G  K O N G

SWANK INTERNATIONAL:  Sells Losing Business


I N D O N E S I A

KERISMAS:  PT Holdiko Sells 98 Percent Stake
PT CITRA MARGA:  Debt Restructuring Review Begins Next Month


J A P A N

DAIEI Inc.:  Revitalizes Products
FUJI CAR:  Seeks Court Protection
SNOW BRAND:  Closes Netherlands Research Center


K O R E A

DAEWOO MOTOR:  Violence Erupts During Strike
HYUNDAI LIFE:  Responsible for Gov't. Aid


M A L A Y S I A

MALAYSIAN AIRLINES:  Reports RM451.6M Loss
SISTEM TELEVISION:  Losses in RM100M Defamation Suit


P H I L I P P I N E S

BW RESOURCES:  Lawyer Implicated in Scandal
PHIL. NATIONAL BANK:  Retrenches Employees


S I N G A P O R E

HUTCHISON INTRAPAGE:  To be Placed Under Judicial Management


T H A I L A N D

CHIANG MAI:  Reports Bt14M Net Loss
PAE (Thailand):  Reports Bt681M Loss
THAI AIRWAYS:  Needs to Cut Operating Costs


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

FRANKLINS:  Continues to Loose
------------------------------
Discount retailer Franklins continues to lose market share and
earnings as it posted an annual loss of US$135 million, according
to ABC News On Line on Tuesday. Franklin's parent company, the
Honk Kong-based Dairy Farm International, is preparing to sell its
holdings.

Ian Cornell, Franklins managing director, said competition is
becoming more aggressive, making the retailer struggle to maintain
an 11 percent market share.

Those competitors, particularly Woolworths and Coles Myer, would
be potential buyers of Franklins, although they may have trouble
winning the approval of Australia's competition watchdog.


HIH INSURANCE:  Director Quits on Huge Losses
---------------------------------------------
A director of HIH Insurance has resigned on speculation that he is
responsible for huge losses, according to the Tuesday issue of the
Sydney Morning Herald.

Rodney Adler, former chief executive of FAI Insurance, is seen by
many shareholders as being responsible for HIH's troubles. They
are still waiting for final advice from accountants, actuaries and
other advisers about the exact size of these losses.

HIH stock tumbled 4.5c to 17.5c after a trading halt was lifted
and investors baled out ahead of March 16's interim result
release. At one stage the shares hit 15.5c, an all-time low.

Speculations on losses ranges from A$250 million to A$500 million.

Adler believes that his successor, Randolf Wein, is capable of
handling the job with substantial restructuring reforms in place.

During the HIH board meeting, it was decided that company must
dispose of its non-core business and that losses must be relative
to the restructuring activity.


PROPERTY.COM.AU:  Sold for A$3M
-------------------------------
Magazine publisher PMP Ltd on February 27 sold property.com.au, a
real estate Internet site, for A$3 million to RP Data, a property
information services organization.

RP Data will also pay PMP A$500,000 over two years for the
provision of content for its property portals. PMP will now be
able to minimize losses and future costs related o site
development.

The Web site returned losses of A$2.8 million in the six months to
December 31, 2000, PMP said.


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

SWANK INTERNATIONAL:  Sells Losing Business
-------------------------------------------
Swank International Manufacturing Co., a manufacturer of eye-
optical, will sell its non-core loss making retail business in
China for HK$2 million, Quamnet News reported on Tuesday.

Swank said it agreed to sell its entire 70 percent of its eye-
optical wear retailer in China to Wah Kin International
Development Ltd. The proceeds will be used as working capital.

Swank, which operates 17 eye-optical wear retail shops in the
mainland, has a HK$83.6 million deficit in net assets based on
unaudited financial statements as at 31 December 2000.


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

KERISMAS:  PT Holdiko Sells 98 Percent Stake
--------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) and PT Holdiko
Perkasa (Holdiko) on February 27 commenced the sale process of its
97.69 percent shareholding in PT Kerismas Witikco Makmur
(Kerismas) and RP127.3 billion in debt principal to Holdiko.

Kerismas is a galvanized iron sheet producer with production
locations in Jakarta and Manado, IBRA said on Monday.

The disposal process will also include Holdiko's indirect 50.14
percent interest in PT Semarang Makmur, a subsidiary of PT
Kerismas Witikco Makmur, another galvanized iron sheets
manufacturer located in Semarang, Central Java.

Dasa Sutantio, IBRA's Director AMI, said the method of disposal
would also ensure that the maximum proceeds will be obtained.

Scott Coffey, Director of Holdiko, said the conglomerate aims to
raise over IDR 1 trillion from the sale of the spill-over assets.


PT CITRA MARGA:  Debt Restructuring Review Begins Next Month
------------------------------------------------------------
PT Citra Marga Nusaphala Persada (CMNP) will review its debt-
restructuring plan before its debts of US$97.8 million are
redeemed on 2002. Long-term debts maturing this month include FRN
worth US$37.8 million and eurobonds US$60 million, Bisnis
Indonesia reported on Tuesday. The previous figures were US$175
million and US$125 million. The company has paid the rest in
installment.

The planned restructuring may include buy back, refinancing, right
issue, loan extensions, cash settlement and a hair cut or even a
combination of all these. A business advisor is to be appointed to
make a decision on this matter.

The company said that if toll tariffs are not increased by Rp500
this year, by the end of 2002 the company will have a shortage of
Rp360 billion. And even if tariffs are raised that much the
company will still have a fund shortage of Rp230 billion.

Awaiting the deadline, Japan Credit Agency downgraded the
company's credit rating from B- to CCC.


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

DAIEI Inc.:  Revitalizes Products
---------------------------------
Daiei Inc. plans to revitalize its products by focusing on men's
low-priced business suits priced at between 9,000 and 19,000 yen.

Daiei Kanazawa Hakkei supermarket in Yokohama will be the first to
open on March 1 and by mid-March at Daiei Sannomiya Ekimae will
open in Kobe. The company expects to open 50 shops this year,
Yomiuri Shimbun reported on Tuesday.

Daiei has contracted a domestic apparel firm to provide an
exclusive brand of suits for the new shops made to its particular
specifications -- a style called private brand (PB) retailing.

Daiei projects to sell 270 suits per month at each outlet and have
a monthly sales target of 7.5 million.


FUJI CAR:  Seeks Court Protection
---------------------------------
Fuji Car Mfg. Co., a major maker of multistory parking systems,
filed for court protection from creditors trying to collect 21
billion yen in liabilities on February 23. The firm, affiliated
with major chemical maker Ube Industries Ltd filed an application
for court-led civil rehabilitation at the Osaka District Court,
Jiji Press English News Service reported on Friday.

Tadayoshi Tanaka, Fuji Car President, said the firm would submit a
business rehabilitation program in six months.

Fuji Car has suffered funding problems after orders for multistory
car parking systems, which account for over 20 percent of its
overall sales, slumped with Japan's economic slowdown, the company
said. A restructuring program formulated last October, featuring
payroll cuts and asset sales, failed to turn the company around.

The firm had a recurring loss of 992 million yen on sales of 7.1
billion yen April-September first half of the current year.

Fuji Car is in danger of being placed in the liquidation post in
the Tokyo Stock Exchange and the Osaka Securities Exchange until
May 23 and delisted on May 24.


SNOW BRAND:  Closes Netherlands Research Center
-----------------------------------------------
Snow Brand Milk Products Co., a Japanese dairy producer, will
close its Netherlands research center by the end of September as a
cost-cutting measure, according to the Thursday issue of Jiji
Press English News Service.

The major Japanese dairy producer will still be losing tens of
millions of yen during the liquidation process despite savings of
70 million to 80 million.

The center was founded in 1991 with the aim of collecting
information on dairy products in Europe and undertaking joint
research with local institutions.

Snow Brand milk products were suspected to have been responsible
for a massive food poisoning, causing its removal from store
shelves.


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

DAEWOO MOTOR:  Violence Erupts During Strike
--------------------------------------------
The strike at Daewoo Motor's main plant in Pupyong turned violent
when some 2,000 angry workers threw rocks and firebombs at riot
police in violent street demonstrations on February 24, according
to the Monday issue of the Korea Herald.

The violence erupted when riot police stopped angry demonstrators
trying to stage a mass rally in front of Pupyong Station,
resulting in dozens of injuries and the arrests of 50
demonstrators.

Dan Byong-ho, head of the Korean Confederation of Trade Unions
(KCTU), said they are protesting planned massive layoffs at Daewoo
Motor, saying workers are being asked to make unfair sacrifices.

Daewoo Motor has announced plans to layoff 1,751 workers as part
of restructuring efforts. Overseas plants like those in Poland may
follow.


HYUNDAI LIFE:  Responsible for Gov't. Aid
-----------------------------------------
Lee Keun-Young, chairman of the Financial Supervisory Commission
(FSC) says that even though the government is stepping in to
protect Hyundai Life Insurance customers, shareholders are
responsible for using the public funds, according to the Tuesday
issue of the Korea Herald.

HLI's controlling shareholders are mostly Hyundai Group affiliates
who failed to keep their part of a promise to increase capital for
HLI when they first acquired the troubled insurance company.

Lee agreed that it would be absurd to inject public funds into HLI
without questioning the controlling shareholder, Hyundai Group.


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

MALAYSIAN AIRLINES:  Reports RM451.6M Loss
------------------------------------------
Malaysian Airline System (MAS) has reported a RM451.6 million pre-
tax loss for the third quarter ended December 31 last year,
compared with a loss of RM225.9mil in the corresponding quarter of
1999.

MAS had a RM843 million pre-tax loss for the cumulative period
ended December 31, 2000, against a profit of RM61mil previously.
During the period, MAS registered a higher turnover of RM2.3bil,
versus RM2.13bil for the previous comparable period.

The airlines expanded its capacity by 6.9 percent to 2.08 billion
ton-kilometer for the quarter, and by 12.5 percent to 6.2 billion
ton-kilometer cumulatively. Traffic grew by 9.8 percent to 1.4
billion ton-kilometer for the quarter, and by 16.6 percent to 4.1
billion ton-kilometer cumulatively.

Datk Md Nor Yusof, newly appointed MAS managing director, said MAS
has suffered because of the rise in jet fuel prices during
September and October of last year.

"The performance of cargo and catering, two key components of our
subsidiary operations, did not match our expectations. This
further affected profitability," he said.


SISTEM TELEVISION:  Losses in RM100M Defamation Suit
----------------------------------------------------
On February 23 the Supreme Court ordered Sistem Televisyen
Malaysia Bhd (TV3), Malaysia's largest private television network,
to pay RM100 million (S$45.3 million) in damages for defamation to
a local businessman.
  
Badrul Zaman P S Md Zakariah, owner of a foreign workers
employment agency, claimed that TVE defamed him when it showed in
its news clip his arrest by the Immigration Department before
being prosecuted by the court, according to the Tuesday issue of
the Business Times.

He also sued Star Publications, the Sun Media Corp. and the New
Straits Times Press for a total of nine libel suits with claims
amounting to RM1.3 billion.

TV3, laden with RM500 million of debt, is 49.5 percent owned by
diversified Malaysian Resources Corp. It began operations in 1984
but has been in the red for the past few years.


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

BW RESOURCES:  Lawyer Implicated in Scandal
-------------------------------------------
A Securities and Exchange Commission (SEC) report has implicated a
BW Resources lawyer in the company's controversial stock
manipulation scandal, Business World reported on Tuesday.

Agnes Maranan, BW Resources legal counsel, said the SEC report was
a "malicious and deliberately false complaint-affidavit."

The Commission alleged that the news items released by Ms. Maranan
were without any ascertainable value and that she, along with Mr.
Tan, BWRC president Eduardo Lim Jr., PCCI Securities Corp.'s
Francisco Liboro and Gonzalo Bongolan signed a "baseless" report
aimed to boost BWRC's stock price.

Meanwhile, Justice Secretary Hernando Perez will take a direct
hand in assisting the four-member prosecution panel that may
implicate more than 139 individuals in the third BWRC report.

Perez said the third report is "not prejudicial" to the SEC's
pending appeal on major charges dismissed in the second report.


PHIL. NATIONAL BANK:  Retrenches Employees
------------------------------------------
The Philippine National Bank (PNB) will undertake an extensive
reorganization and manpower retrenchment to minimize operational
costs. Feliciano Miranda, PNB President and Chief Executive
Officer, said the personnel reduction would be done through a
Special Separation Plan in compliance with Bangko Sentral ng
Pilipinas' (BSP) requirement, the ABS/CBN News Channel reported on
Tuesday.
  
"PNB practically has no choice but to undertake such a program,
more so in view of difficult economic conditions which have
adversely affected the bank's revenue levels," said Miranda.

The bank is setting up a retirement fund for employees who wish to
seek opportunities outside the organization.

Currently, PNB has an about 8,800-strong workforce spread out in
its head office and 324 branches nationwide. Miranda attributes
half of its administrative expenses to personnel costs.

In order to have access to funds at low costs, the BSP is offering
the rediscounting window facility. The rediscount window is a
lending facility tapped mainly by exporters and farmers, which is
100 basis points lower from the average rate of 91-day Treasury
bill at the last auction the past month.

A rediscount window facility also enables the PNB to avail itself
of loans from the BSP using assets or good loans as collateral.


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

HUTCHISON INTRAPAGE:  To be Placed Under Judicial Management
------------------------------------------------------------
Intraco Ltd. and Teledata (Singapore) Ltd. on February 26 filed an
application to place Hutchison Intrapage (HI), a Singapore paging
operator, under judicial management.

In a letter submitted to the Singapore Stock Exchange on Monday,
Emily Chin (Hutchison corporate secretary) said Intraco holds a 70
percent interest in Hutchison while Teledata owns the remaining 30
percent. She also revealed that Yin Kum Choy of KC Yin Co. was
appointed as interim judicial manager of HI. The appointment of
judicial manager will not affect the earnings per share and the
net tangible assets of its two owners.

Hutchison has given its 30,000 subscribers until March 15 to
transfer to other operators before its impending closure.


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

CHIANG MAI:  Reports Bt14M Net Loss
-----------------------------------
Chiang Mai Medical Services has reported an audited net loss of
Bt14million for the year ended December 31 compared to a net loss
of Bt47.6million in 1999, the Bangkok Post reported on Tuesday.


PAE (Thailand):  Reports Bt681M Loss
------------------------------------
PAE (Thailand) has reported an audited consolidated net loss of
Bt681.4 million for the year ended December 31 compared to a net
loss of Bt921.8 million in 1999, the Bangkok Post reported on
Tuesday.


THAI AIRWAYS:  Needs to Cut Operating Costs
-------------------------------------------
Thai Airways International (THAI) must cut operating costs in
order to attract investors, says Pracha Maleenond, Deputy Minister
of Transport & Communications (MOTC).

The government prefers to sell THAI shares to Thai investors since
the firm has a Thai management team, Business Day Thailand
reported on Monday. The board of THAI and its management team
disagree on who should be allowed to buy the shares the airline
plans to offer.

While the company's management would prefer to sell 10 percent of
total shares to potential foreign partners in the airline
industry, the major shareholders who are government agencies, such
as the Ministry of Finance, want to offer them to a wider target
group of investors.

THAI is planning to increase its registered capital from Bt1.4
billion to Bt1.7 billion by issuing 300 million new shares that
will be offered with 100 million shares held by the finance
ministry.

According to the plan, 13 percent of total recapitalized shares
will be offered to the public and company employees while the
remaining 10 percent will be sold to foreign strategic partners.

Major foreign carriers Lufthansa, British Airways, Qantas and
Singapore Airline are reportedly interested in acquiring a stake
in Thai Airways, Asia's eighth largest airline.



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.

This material is copyrighted and any commercial use, resale
or publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
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sources believed to be reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6
months delivered via e-mail. Additional e-mail
subscriptions for members of the same firm for the term of
the initial subscription or balance thereof are $25 each.
For subscription information, contact Christopher Beard at
301/951-6400.

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