---

            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, March 8, 2001, Vol. 4, No. 47

                               Headlines

A U S T R A L I A

EMAIL LIMITED: Smorgon Takeover Bid Closed March 7
HIH INSURANCE: Signs Agreement for QBE Insurance Joint Venture
IINET LIMITED: Posts $271,872 Net Loss After Taxes
SOLUTION 6: Divests Subsidiary to Thomson Legal


C H I N A   &   H O N G  K O N G

DAH SING: Virtual Bank to Lose as Much as $75 Million in 2001


I N D O N E S I A

TENAGA NASIONAL: Offers to Buy Back Outstanding Notes


J A P A N

MITSUBISHI MOTORS: Stays Tight-Lipped on Company's Loss


K O R E A

KOREA INDUSTRIAL: A Prelude of Things to Come


P H I L I P P I N E S

BAYAN TELECOMMUNICATIONS: Inks Deal with Creditor Banks
FAIRMONT HOLDINGS: HK Firm Buys 350 Million Common Shares
PHILIPPINE AIRLINES: MacroAsia Ready to Buy Catering Division
PHILIPPINE NATIONAL: Government Will Sell Stake at Proper Price
NATIONAL POWER: PNOC Unit Offers to Buy Napocor Assets


S I N G A P O R E

ASIA PULP:  Fitch Downgrades Debt Rating to C; on Watch Negative


T H A I L A N D

BANGKOK STEEL: Steps Back to Speed Up Merger
MAHA THANAKIT: Court Declares Company Bankrupt
MUANG THONG: Declared Bankrupt by FRA
PIBOONBUNAKIT COMPANY: Foreign Banks File Bankruptcy Suit
ROYAL INTERNATIONAL: FRA Draws Suspended Company into Bankruptcy

THAI PETROCHEMICAL: Annual Loss Worse Than Expected
THANASAP FINANCE: 5 Suspended Companies to be Declared Bankrupt


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

EMAIL LIMITED: Smorgon Takeover Bid Closed March 7
--------------------------------------------------
The takeover bid by Smorgon Distribution Limited for Email
Limited closed March 7, 2001, Smorgon Steel Group Limited said in
a statement.  Smorgon said its joint bid with OneSteel Limited
for Email had been accepted by holders of more than 96 percent of
Email shares.

Payments to Email shareholders who have accepted the bid before
the offer closes will be mailed between March 23 and March 28,
2001.  Shareholders who have not accepted the bid will have their
shares compulsorily acquired. Shareholders will receive $2.92
cash per share.

Smorgon Steel Group managing director Ray Horsburgh said, "We are
very pleased to have finally completed this acquisition. The
Email businesses Smorgon is acquiring represent an excellent fit
with our existing activities.

"In addition there will be attractive, rationalisation benefits,
while funds raised from the proposed divestment of some Email
businesses will help to reduce Smorgon's debt."


HIH INSURANCE: Signs Agreement for QBE Insurance Joint Venture
--------------------------------------------------------------
HIH announced on March 6 that it has reached an agreement with
QBE Insurance Limited to the main terms for a Corporate insurance
joint venture.  This is subject to regulatory approvals and other
conditions.

A new entity called QBE Corporate Insurances Limited will offer
to renew all corporate insurances written through major brokers
by HIH and QBE in both Australia and New Zealand. QBE will have
management control of the new entity, which will be 60 percent
owned by QBE and 40 percent by HIH.

The insurance liabilities on past and current insurance policies
of the Australian operations of HIH and QBE including unexpired
policies will be runoff by the respective companies. QBE
Corporate Insurance Limited will not assume any past or existing
insurance liabilities of QBE in Australia or of HIH (including
FAI runoff in New Zealand). QBE Corporate Insurances Limited
will, however, assume the remaining insurance liabilities of HIH
in New Zealand with assets being transferred for an amount equal
to the insurance liabilities assumed.

QBE Corporate Insurances Limited is expected to renew around $900
million of gross premium income and net premium income of around
$700 million. Initial shareholders funds are expected to be $300
million, funded $216 million by QBE and $84 million by HIH. The
higher contribution by QBE reflects the larger proportion of
premium being contributed by HIH to the joint venture.

After discussions with Standard & Poor's, it is expected that QBE
Corporate Insurances Limited will achieve an A category rating.

QBE and HIH will seek to obtain regulatory and other approvals by
the renewal date of June 30, 2001. Commencing immediately, QBE
will offer renewals to HIH major corporate clients through its
licensed A+ rated subsidiary QBE Insurance (Australia) Limited.

HIH chief executive Randolph Wein, said, "The proposed joint
venture is an important initiative to preserve and enhance value
for HIH shareholders. The creation of one of Australia's largest
corporate insurance providers in combination with QBE will
provide HIH with both an ongoing earnings stream and a valuable
investment. The joint venture also offers the Australian and New
Zealand corporate insurance markets an outstanding combination of
technical skills, expertise and capacity."

The new joint venture will provide corporate clients and many
insurance brokers with a more permanent alternative to the
transitional agency structure that HIH already has in place via
the Gerling Group. When the Gerling managing general agency was
announced in November 2000, HIH indicated that the arrangement
was transitional and designed to enable HIH to "preserve and
enhance our corporate portfolios ... while corporate
restructuring is completed'.

Mr. Wein expressed the appreciation of HIH to the Gerling Group
for their assistance but indicated that, in the interest of
shareholders, the more permanent and comprehensive arrangement
offered through the QBE joint venture was the best course for the
future.


IINET LIMITED: Posts $271,872 Net Loss After Taxes
--------------------------------------------------
Internet service provider iiNET posted an aftertax net loss of
$271,872, compared with its profit of $906,000 for the previous
corresponding period, for the six months to December after
deciding to absorb the GST cost, Fairfax I.T. reports.  

IiNET had also expected a decline in retail dialup service
pricing during the first half, but the December fall of 30
percent was much greater than expected.


SOLUTION 6: Divests Subsidiary to Thomson Legal
-----------------------------------------------
Solution 6 Holdings Limited (ASX:SOH) announced on March 6 that
it has entered into a Memorandum Of Understanding to divest
Solution 6 Lawpoint Pty Limited to Thomson Legal & Regulatory
Limited.

Solution 6 Lawpoint Pty Limited, established in 1988, is
Australia's leading online reseller of government registry
information for the legal profession.

The transaction is expected to be completed by the end of the
month and is subject to certain regulatory and other approvals.
Thomson Legal & Regulatory Limited, a subsidiary of The Thomson
Corporation, will purchase all shares in Solution 6 Lawpoint Pty
Limited for a sum in excess of net book value. This will increase
Solution 6's cash reserves to more than A$75M.

The transaction follows a strategic review by the Solution 6
Group's senior management to refocus the business. This review
considered the divestment of non-core assets and increased the
number of business alliances and strategic partnerships with key
players in the content, transaction and software industries.

Solution 6 Group Chief Executive Officer Neil Gamble said, "The
decision to sell Lawpoint makes good business sense for all the
parties involved. Thomson Legal & Regulatory is part of a global
e-information and solutions provider and is recognised as a
leader in electronic service delivery of content and
transactions. This divestiture will provide the Solution 6 Group
with increased options to integrate content, transaction and
software solutions."

He added, "There is a worldwide trend for content transaction and
software players to work closer together to deliver seamless,
integrated solutions, and this transaction is the initial step
for the Solution 6 Group to work with global content players."

Doug Halley, Chief Executive Officer and Managing Director,
Thomson Legal & Regulatory Asia Pacific, said, "The acquisition
of Lawpoint strengthens and complements our major e-initiatives
and is an indication of our continued focus in offering practice
solutions to professionals."

Solution 6 Lawpoint General Manager Ted Griffin said today that
this acquisition would benefit Lawpoint customers by allowing the
integration of Thomson's vast content and transaction-based
services with Lawpoint's online search services.


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

DAH SING: Virtual Bank to Lose as Much as $75 Million in 2001
-------------------------------------------------------------
Dah Sing Financial Holdings said its "virtual bank", to be
launched within two months, is expected to lose as much as $75M
this year.  Ronald Carstairs, managing Director of Dah Sing
Financial, said he expected approval from the Hong Kong Monetary
Authority would be granted as early as this month.

The city's first virtual bank would incur a loss of between $50M
and $75M this year.  Dah Sing unveiled its plan for a virtual
bank a year ago.  Other banks are shying away from the idea as
most virtual banks in the United States and Europe have yet to
make a profit.


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

TENAGA NASIONAL: Offers to Buy Back Outstanding Notes
-----------------------------------------------------
Tenaga Nasional Berhad (TNB) announced on March 5 that it has
commenced a tender offer to purchase all US$300 million aggregate
principal amount of its outstanding 7.200 percent notes due April
29, 2007, and all US$600 million aggregate principal amount of
its outstanding 7.875 percent notes due June 15, 2004.

The offer is part of TNB's long-term plan to manage its
liabilities, particularly in light of an early repayment option
exercisable in 2002 by the holders of the 7.200 percent Notes due
April 29, 2007.  It is contingent upon, among other things, the
sale by TNB of new debt securities to provide a source of funds
for the offer.  The offer will expire at 5:00 p.m., New York City
time, on March 30, 2001, unless extended by TNB.

The Dealer-Managers for the offer are Lehman Brothers Inc. and
HSBC. Commerce International Merchant Bankers Berhad is also
advising TNB in respect of matters relating to the offer. The
Information Agent for the Offer is D.F. King & Co., Inc. All
questions relating to the Offer should be directed to the
Liability Management Group at Lehman Brothers Inc. in New York at
1-212-528-7581 (call collect) or 1-800-438-3242 (toll free in the
United States), Syndicate/Debt Capital Markets at HSBC Securities
(USA) Inc. in New York at 1-212-525-3143 (call collect) or 1-866-
594-3658 (toll free in the United States) or D.F. King & Co.,
Inc. in New York at 1-212-269-5550 (call collect) or 1-888-460-
7637 (toll-free in the United States).


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

MITSUBISHI MOTORS: Stays Tight-Lipped on Company's Loss
-------------------------------------------------------
Troubled Japanese carmaker Mitsubishi Motors was tight-lipped
yesterday over a report that the firm's net loss for the year to
March will amount to US$2.1B, almost 80 percent more than
forecast.

"The report is based on pure speculation," a Mitsubishi spokesman
said.  "We have no comments to make as we are currently preparing
our fiscal reports for the end of March."

The Nihon Keizai Shimbun reported on Sunday that Mitsubishi
Motors' net loss would widen to 250B yen, up 78.6 percent from an
earlier forecast of a 140B yen loss.


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

KOREA INDUSTRIAL: A Prelude of Things to Come
---------------------------------------------
South Korean markets were rattled by the financial woes of the
giant Hyundai Group as one of its units went belly up.  

Four months after creditors declared mid-sized builder Korea
Industrial Development (KID) viable, the unit went insolvent in
what analysts say is a prelude of things to come.  The company's
failure was a surprise for investors.  Analysts say KID's
collapse underscores the risks for the fragile banking sector.  

"It is just the beginning of the end for many of these companies.
A very small number of companies was singled out for sacrifice,"
said Yeo Han-sia, an economist at Ideaglobal.com.

Worries about family-controlled Hyundai increased at the weekend
when KID was declared bankrupt for not repaying 7.9B won in
promissory notes.  Financial institutions have been reluctant to
lend to KID, a mid-sized construction unit saddled with a debt of
627B won.  It is expected to file for court receivership this
week.  While its debt was relatively small, analysts said
investors were more worried about the group's overall debt
problems.


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

BAYAN TELECOMMUNICATIONS: Inks Deal with Creditor Banks
-------------------------------------------------------
Benpres Holdings Corp. affiliate Bayan Telecommunications, Inc.
(BayanTel) is finalizing an agreement with 34 creditor banks to
pave the way for an orderly restructuring of liabilities worth
$240 million, Business World reported March 6.

The draft of the Memorandum of Agreement (MoA), which Bayantel
and the banks are reviewing, stipulates that the Lopez-controlled
telecom company will not seek debt relief with the Regional Trial
Court while negotiating with the banks for a longer repayment
term, the report said.  In return, the banks will not file claims
at the court.

An industry source, who was not named, told Business World, "We
are negotiating for a standstill agreement... It is very hard to
negotiate if there is a court case.

"They hope to present something by the second week of March," the
source said, adding, "Nothing has been agreed upon yet.
Everything is just posturing."

Bayantel appointed Bank of America as its Financial Advisor in
January of this year. A company press release described Bank of
America's role is "to assist BayanTel's management [to] develop
the appropriate debt capital structure for its current
businesses."  

The Business World source disclosed Bayantel declared a
moratorium on the principal payment on its short-term loans on
December 19, and said the company may negotiate for restructuring
of long-term loans when amortization payments begin in June.  The
source said some of the loan syndications have the corporate
guarantee of parent company Lopez, Inc.

Creditor banks formed a steering committee to facilitate and
expedite communications between Bayantel and the banks, the
report said.  

Meanwhile, creditor banks have formed a steering committee to
facilitate and expedite communication between BayanTel and the
banks. The members of the committee include:
     - Equitable PCI Bank
     - Metropolitan Bank and Trust Co.
     - Land Bank of the Philippines
     - Bank of the Philippine Islands
     - Deutsche Bank
     - Export Development Corp.
     - JP Morgan Chase
     - United Coconut Planters' Bank
     - Philippine National Bank

BayanTel is owned by the Lopez Group led by Benpres Holdings
Corporation (68.76 percent) and its strategic partner Bell
Atlantic Network Systems Corporation (20.01 percent).  Other
major investors are Asia Infrastructure Fund Group (10.3 percent)
and Chase Capital Partners (0.93 percent).


FAIRMONT HOLDINGS: HK Firm Buys 350 Million Common Shares
---------------------------------------------------------
Fairmont Holdings Inc. announced on March 5 that it had inked a
subscription agreement with Hong Kong-based global investment
company Emerging Market Assets Limited for the issuance of 350
million common shares by way of private placement at the
subscription price of one peso (PhP1.00) per share.

A recent report by The Philippine Daily Inquirer quoted new
company president Ferdinand Masi as saying, "Fairmont needs to
raise funds through private placements to enable the company to
address its immediate cash requirements and various obligations."  

The report quoted Masi as saying that Emerging Market "normally
invests in companies that it believes have potentials for
profitability and growth. It also lends its expertise and
resources to financial restructuring and merger-and-acquisition
transactions."

Property magnate Andrew Tan recently took over management of
Fairmont from Estrada crony Dante Tan, the Inquirer said.  Dante
Tan's Best World Gaming and Entertainment Corp. was intended to
diminish Megaworld's stake, but controlling shareholder Megaworld
was forced to take charge of the company's rehabilitation with
Tan out of the picture.  The agreement with Emerging Market will
let it acquire 17.5 percent of the 2 billion total shares issued
by Fairmont.  It will also dilute Megaworld's stake from 72.72 to
60 percent.  

Fairmont was formerly known as BW Resources Corp. and was
involved in a stock market scandal over price manipulation
charges last year.  


PHILIPPINE AIRLINES: MacroAsia Ready to Buy Catering Division
-------------------------------------------------------------
MacroAsia Corp. corporate information officer Marivic T. Moya
said during an interview with Business World that the airport
services company is ready to absorb flag carrier Philippine
Airlines Inc.'s catering division.  

"When that time comes, we will definitely bid. We're interested
in (PAL's) catering business. We're ready to absorb the
business," Ms. Moya told the World.

PAL's rehabilitation plan requires it to divest non-core assets
through public bidding.  These assets include:
     - maintenance and engineering unit
     - catering business
     - ground-handling and cargo units

Delgado-owned Manila Integrated Airport Services Corp. has also
reportedly expressed interest in some of PAL's non-core assets.  

MacroAsia provides aviation and logistics support. It has
catering partnerships with Cathay Pacific in Cebu, Singapore
Airport Terminal Services and Eurest International.  It has an
existing joint venture with Lufthansa Technik AG of Germany to
set up a firm that will operate an aircraft maintenance and
overhaul facility in the country. The joint venture is planning
to acquire the maintenance and engineering unit of PAL said to be
worth some $150 to $200 million.


PHILIPPINE NATIONAL: Government Will Sell Stake at Proper Price
---------------------------------------------------------------
Finance Secretary Alberto G. Romulo of the Department of Finance
told reporters on March 5 that the Philippine government will
sell "at the proper price (so that) the expenses of the
government will be diminished and losses are recouped," Business
World reports.  He was referring to the government's remaining 16
percent stake in Philippine National Bank.

Mr. Romulo said the Deparment of Finance will start a due
diligence audit on PNB to determine the price at which the
government will sell its shares.  He said the government should
not rule out any options at this stage, and is open to a deal
with director Lucio C. Tan, which would allow it to sell its
stake in the bank.

The government and Mr. Tan hold a combined stake of 86 percent in
PNB.  Two weeks ago, PNB became one of the most actively traded
shares on the Philippine Stock Exchange when the Department of
Finance announced it planned to conduct a joint sale of the
combined stake, the Inquirer said.

Mr. Romulo disclosed that the government has to complete the due
diligence soon before it can decide whether to undertake the
joint sale or a call option agreement, the Inquirer said.

PNB's core business consists of lending and deposit-taking
activities from corporate, middle market and retail customers as
well as various government units such as LGUs and GOCCs.  Its
other principal activities include investment banking, fund
transfers/remittance servicing, trade finance, money market,
foreign exchange dealings and offering of retail and wholesale
trust services, among others.  


NATIONAL POWER: PNOC Unit Offers to Buy Napocor Assets
------------------------------------------------------
Philippine National Oil Corporation (PNOC) chairman Sergio F.
Apostol told the Manila Times in an interview that PNOC could buy
the geothermal power facilities of cash-strapped National Power
Corporation at Tongonan, Leyte; Palinpinon, Southern Negros; and
Baconmanito, Bicol.  

"I already proposed to Napocor president Jesus Alcordo that PNOC-
EDC would like to purchase their geothermal plants because we
have the capability to borrow money. If he would say yes, we
would start negotiations with them," Mr. Apostol told the Times.

PNOC-EDC chairman and president Nazario C. Vasquez told the Times
in a separate interview, "If we have to buy Napocor's assets, we
have to buy first the power plants connected to our steam fields,
namely, Tongonan, Palinpinon and Bac-Man if Napocor is willing to
sell them. If Napocor's privatized, there is a question raised
about unifying the geothermal assets. And when you talked about
unifying, it's either Napocor buying part of PNOC-EDC or vice
versa."  

Mr. Vasquez was referring to a provision in the Power Reform Bill
that is intended to unite the geothermal plants and steam fields.


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

ASIA PULP:  Fitch Downgrades Debt Rating to C; on Watch Negative
----------------------------------------------------------------
International rating agency Fitch lowered the Senior Unsecured
debt rating of Asia Pulp & Paper Limited (APP) to 'C' from 'CC',
and retains the rating on Rating Watch Negative. This follows the
official announcement by the company that it intends pursuing
initiatives to deal with its substantial indebtedness.

In view of this, Fitch expects the company to implement
restructuring efforts likely to lead to imminent default as per
the existing debt-servicing schedule. Fitch will continue to
monitor the rating closely to resolve the Rating Watch.


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

BANGKOK STEEL: Steps Back to Speed Up Merger
--------------------------------------------
Bangkok Steel Industry Plc (BSI) will address its debt problems
before continuing with plans to merge with Siam Cement Plc's
Cementhai Steel division. The Bangkok Post reported Monday that
the new plan has been amended so that Siam Cement would own 50
percent; NTS Steel, 43 percent; and McDonald Management
Consulting Co, 7 percent. The old plan had Siam Cement with 37
percent, NTS with 33 percent and Bangkok Steel with 30 percent.

Bangkok Bank and Siam Commercial Bank, the major creditors of
Bangkok Steel, have filed bankruptcy proceedings against Bangkok
Steel. The steel company owes the former 2.99 billion baht and
the latter, 1.39 billion baht.

NTS Steel, in the process of its own debt-restructuring exercise,
would hold up to 95 percent in the newly formed steel company,
Millennium Steel. NTS creditors would therefore end up owning at
least 40 percent of Millennium Steel.

Deloitte Touche Tohmatsu is coordinating NTS's debt restructuring
plan including the planned merger scheme. The Central Bankruptcy
Court is expected to rule on the proposals on March 26.


MAHA THANAKIT: Court Declares Company Bankrupt
----------------------------------------------
The Central Bankruptcy Court declared Maha Thanakit Finance &
Securities Plc. (MTT) bankrupt on January 22, 2001, putting the
company into absolute receivership. The court acted on a request
filed by the company's liquidator appointed by the MTT's Section
30 Committee who managed the company on behalf of the Financial
Sector Restructuring Authority (FRA).

FRA's Secretary-General Dr. Montri Chenvidyakarn said that the
bankruptcy measure taken by MTT was necessary because some
creditors filed suits against the company and the Civil Court had
ruled in favor of such creditors. This has put these creditors at
an advantage over others as they could be repaid full amount of
outstanding debts when the Court's ruling was enforced.

"We want to see all creditors fairly treated according to the
FRA's debt adjudication process," Dr. Montri said.

Maha Thanakit Finance & Securities Plc. was established on
December 2, 1985 with a registered capital of about 5.5 Billion
baht. It was one of the 42 finance companies suspended on August
5, 1997. It had 9.2 Billion baht of assets and 14.6 Billion baht
of outstanding debts as of November 30, 2000. The Financial
Institutions Development Fund (FIDF) is a major creditor who
filed a claim at 99 percent of total the outstanding debts.


MUANG THONG: Declared Bankrupt by FRA
-------------------------------------
The Financial Sector Restructuring Authority (FRA) has brought
FRA-supervised suspended finance company Muang Thong Trust
Finance & Securities Co., Ltd. into the bankruptcy process.  
Muang Thong was declared bankrupt by the Central Bankruptcy Court
and put under absolute receivership on February 27, 2001.

FRA Chairman Kamol Juntima said that the company already
distributed the proceeds from asset sales to its eligible
creditors who had filed their claims according to the FRA's
procedures. The remaining assets will be handled by the receivers
of the Legal Execution Department in accordance with the
bankruptcy law procedures since the FRA has no legal authority to
complete the liquidation process.

"The creditors of these bankrupt companies have to file similar
claims with the receivers who will announce the period for
creditors to file their claims," said Mr. Kamol.

Muang Thong Trust Finance & Securities Co., Ltd. was established
on September 21, 1972 with a registered capital of about 150
million baht. It was one of 42 finance companies suspended on
August 5, 1997. It had 503.94 million baht of assets and 2,287.34
million baht of outstanding debts as of December 31,2000. The
company's creditors received 101.09 million baht, of which 82.97
million baht was paid to the Financial Institutions Development
Fund (FIDF). Most of its assets are also held up in court
proceeding.


PIBOONBUNAKIT COMPANY: Foreign Banks File Bankruptcy Suit
---------------------------------------------------------
Credit Suisse, Credit Lyonnais and Italy's largest bank San
Paolo-IMI SpA have filed bankruptcy suits against Piboonbunakit
Co, Piboonpattana Co, Wangpetch Co and Pipatanasak Co, all of
which are companies owned by the Tantipipatpong family.  

The banks charged that the companies obtained loans of up to
US$155 million through Merchant Bank (Singapore), which acted as
a broker, the Bangkok Post reported Tuesday.  The loans were due
to mature in three years at interest rates of 50 percentage
points plus the Singapore Interbank Offered Rate in case of
withdrawals in US dollars, or plus the loan cost in other
currencies.  Promissory notes were issued by the borrowers as
guarantees.

Cases were also filed against Pipat Tantipipatpong and Termpong
Tantipipatpong.  Both agreed to unconditionally guarantee the
loans, the Post said.  

The family's businesses range from canned pineapple production
and property development to insurance.  They also have a large
stake in Bangkok Bank.

"We managed to restructure 80 percent of our debts. Most
creditors fully understood that the problem was caused by the
economic crisis and the baht devaluation, and they agreed to
accept the restructuring plan. We are negotiating with creditors
holding the remaining 20 percent of the debts," the Post quoted
Mr. Termpong as saying.

"The creditors who sued us are among those in the 20 percent. So
far, we have been unable to negotiate with them. Earlier, they
had filed suit with the intellectual property court. They have
the right to sue us but we would have to defend our case," he
added.


ROYAL INTERNATIONAL: FRA Draws Suspended Company into Bankruptcy
----------------------------------------------------------------
The Financial Sector Restructuring Authority (FRA) has brought
FRA-supervised suspended finance company Royal International
Finance & Securities Co., Ltd. into the bankruptcy process.  
Royal was declared bankrupt by the Central Bankruptcy Court and
put under absolute receivership on February 27, 2001.

FRA Chairman Kamol Juntima said that Royal had already
distributed the proceeds from asset sales to its eligible
creditors who had filed their claims according to the FRA's
procedures. The remaining assets will be handled by the receivers
of the Legal Execution Department in accordance with the
bankruptcy law procedures since the FRA has no legal authority to
complete the companies' liquidation process.

"The creditors of these bankrupt companies have to file similar
claims with the receivers who will announce the period for
creditors to file their claims," Mr. Kamol said.

Royal International Finance & Securities Co., Ltd. was
established on October 5, 1971 with a registered capital of about
500 million baht. It was one of 16 finance companies suspended on
June 26, 1997. It had 911.93 million baht of assets and 4,554.20
million baht of outstanding debts as of December 31,2000. The
company's creditors received 67.35 million baht, of which 66.57
million baht was paid to the Financial Institutions Development
Fund (FIDF). The amount of the company's assets which had been
sold was small since most of its assets are under litigation.


THAI PETROCHEMICAL: Annual Loss Worse Than Expected
---------------------------------------------------
Thailand's biggest corporate defaulter, Thai Petrochemical
Industry (TPI), announced a worse-than-expected annual loss
yesterday, stemming mainly from hefty foreign exchange charges.  
TPI posted a consolidated net loss of 39.28B baht last year
compared with an 8.55B baht loss in 1999.  Without taking into
account its subsidiaries, TPI recorded a net loss of 47.97B baht
compared with 8.55B in 1999.

Analysts polled by Multex's Global Estimates had a consensus
forecast of a net loss of 13.11B baht for last year and 2.05B
baht for 2001.  An hour before the close its shares were down 2.7
percent at 3.60 baht.  A landmark deal to restructure TPI's
US$3.8B in debt, involving a debt-to-equity conversion and
capital injection, still hangs in the balance.

TPI's founder has appealed against the deal to Thailand's Supreme
Court.  TPI said it posted a foreign exchange loss of 8.32B baht
last year, compared with 2.3B baht in 1999.  The baht was down
about 19 percent to 43.35 per dollar at the end of last year
compared with 37.45 at the end of 1999.


THANASAP FINANCE: 5 Suspended Companies to be Declared Bankrupt
---------------------------------------------------------------
Five suspended companies that have completed payments to
creditors will be brought into the bankruptcy process by the
Financial Sector Restructuring Authority (FRA).

These five companies are Thanasap Finance & Securities Co., Ltd.,
Pacific Finance & Securities Plc., Thanasin Finance Co., Ltd.,
Krung Thai Finance & Securities Plc. and Ekkapat Finance &
Securities Plc.



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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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