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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, March 9, 2001, Vol. 4, No. 48

                               Headlines


A U S T R A L I A

HORIZON ENERGY: Loy Yang Investment Posts A$4.5 Million Net Loss
TAMAR KNITTING: To Resume Operations Under New Ownership
TRAVEL.COM.AU: Reports Consolidated Operating Loss of A$4.3M
WESTERN AUSTRALIAN: Bidders Get 60 Days to Settle Disputes


C H I N A   &   H O N G  K O N G

ARTELLA DESIGN: Winding Up Petition
CENTUPLE MARGIN: Winding Up Petition
DOLLIANNE COMPANY: Winding Up Petition
GREATER CHINA: Posts Wider Net Loss of HK$19.85 Million
PARKWAY GARMENT: Winding Up Petition
TEXTREX LIMITED: Winding Up Petition


I N D O N E S I A

BARITO PACIFIC: JSX Suspends Trading for 1 Hour
PANCA OVERSEAS: Among Those Required to Make Public Disclosure


J A P A N

MAZDA MOTORS: Moody's Lowers Ratings to Ba3
MITSUBISHI MOTORS: Moody's Lowers Debt Rating to Ba3
XEROX CORPORATION: Fuji Photo to Buy Half of Fuji Xerox Stake


K O R E A

DAEWOO INTERNATIONAL: Korea Exchange Says Lawsuit is Premature
DAEWOO MOTOR: General Motors Will Decide on Acquisition in April
DAEWOO SHIPBUILDING: Negotiates with Newcastle for Investment
DONG AH: Creditors Choose Court Receivership
HYUNDAI ENGINEERING: Six Banks to Guarantee $400 Million Loan
HYUNDAI GROUP: No Parachute for Hyundai Asan


M A L A Y S I A

AUTOWAYS HOLDINGS: May Incur Losses of RM51 Million in Suit


T H A I L A N D

KULTHORN KIRBY: To Delist from SET; Prepares Rehabilitation Plan


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

HORIZON ENERGY: Loy Yang Investment Posts A$4.5 Million Net Loss
----------------------------------------------------------------
Horizon Energy Investment Management Limited has posted a loss
after taxes of A$4.5 million for the period ending December 31 of
last year. The key portion of the loss is Horizon's 25 percent
interest in Loy Yang Power, which recorded an A$17.6 million loss
for the period, of which Horizon's interest was an A$4.4 million
loss.

A Horizon company release states industrial action at Loy Yang in
November 2000 resulted in a revenue loss to Loy Yang Power of
approximately A$20 million. In the absence of that event, Horizon
says Loy Yang Power would have recorded a profit for the period.
Loy Yang Power's total revenue for the December 2000 half year of
A$278.8 million was marginally higher than the previous
corresponding period.

Horizon's available cash, after allowance for creditors, at
December 31, 2000, was A$2.5 million.
     
When Horizon listed on the ASX in January 2000, it noted that Loy
Yang Power was in technical default on its Senior Debt lending
covenants. While Horizon expects Loy Yang to avoid default, even
a small decrease in revenue could place it in violation of these
covenants. Loy Yang Power must also refinance a A$500 million
tranche of senior debt by May 2003.

The principal activity of the Horizon Energy Investment Group
during the half-year was the investment in the Loy Yang Power
partnership. The group operates wholly within Australia.


TAMAR KNITTING: To Resume Operations Under New Ownership
--------------------------------------------------------
Launceston's Tamar Knitting Mills will likely resume operations
under new ownership. Mills owner, Ian Thompson, said on March 5
that he has received expressions of interest from 10 parties
since the business was placed on the market in February 2001.

Australasian Business Intelligence reported Tuesday that the
deadline for tenders has been extended to March 9. Thompson said
the expressions of interest had been made by local, interstate
and overseas parties. It is hoped that the sale of the business
will allow creditors to be paid and former employees to receive
$A100,000 in owed entitlements.


TRAVEL.COM.AU: Reports Consolidated Operating Loss of A$4.3M
------------------------------------------------------------
On March 7 Travel.com.au Limited posted a loss of A$2.88 million
by its core Australian business.  A loss of A$142,000 was
incurred by the company's 100 percent subsidiary in New Zealand,
travel.co.nz. This aggregate compares with the A$3.63 million
loss in the corresponding period last year for the same operating
entities.

Lastminute.com (Australia/New Zealand) 74.9 percent owned by TVL,
which commenced trading during the period, contributed A$962,000
of the losses.

The consolidated operating loss was A$4.33 million, after income
tax and abnormal items. The balance of losses of A$357,000 arose
from minority interests and consolidations.

The company implemented a staff redundancy program, completed
last month, and made a number of changes in its sales model due
to slowing sales growth.  

Revenues for the year ending June 30 are now forecast to exceed
the prior year by 25 percent.

A breakdown of the group's subsidiary results:

                     NEW ZEALAND (TRAVEL.CO.NZ)

The 100 percent subsidiary, travel.co.nz contributed gross sales
of A$23.66 million, an increase of 36 percent over the
corresponding period last year.  Travel.co.nz operates an
innovative broker and Intranet model that is complementary to
travel.com.au's technology and systems. The web site is a leading
travel site in New Zealand and sales from the site are a growing
proportion of the company's total sales. The business operated at
a loss of $142,000 for the period.

                      LASTMINUTE.COM (AUS/NZ)

The 74.9 percent owned joint venture with lastminute.com (UK) was
launched in August 2000. There are initially five categories
being offered in Australia, flights, hotels, holidays, gifts and
entertainment. The trading loss for the six months was $1.28
million with $962,000 attributable to travel.com.au Limited.

                    SOUTH AFRICA (TRAVEL.CO.ZA)

In August 1999, travel.com.au formed a joint venture with Tourism
Investment Corporation Limited ("Tourvest"), Southern Africa's
largest travel provider. The joint venture, trading as
travel.co.za, is Southern Africa's number one online travel
company and was launched in February 2000. Travel.com.au holds 30
percent of this joint venture. The business made a total loss of
$300,000 for the half-year to 31 December 2000, with
travel.com.au's share being $90,000.

                        JAPAN (ARUKIKATA.COM)

In September 1999, travel.com.au formed a joint venture agreement
with the Itochu Group and the Diamonc Group in Japan. The
business, Arukikata.com Inc commenced trading in late December
1999 and is recognised as a market leader in online travel
services in Japan.  Travel.com.au holds 16 percent of this joint
venture. The business made a total loss of $1,247,000 for the
half-year to 31 December 2000, with travel.com.au's share being
$200,000.


WESTERN AUSTRALIAN: Bidders Get 60 Days to Settle Disputes
----------------------------------------------------------
Two major bidders for the Western Australian (WA) Port Kennedy
golf resort have been given 60 days to produce a workable scheme,
according to Australasian Business Intelligence on Tuesday.

Creditors for the troubled resort project, at a meeting on March
2, gave international golfer Ian Baker-Finch and his venture, The
Golf Club group, as well as Pac-Asia Holdings, the deadline to
negotiate a complex net of legal disputes on the ownership of the
Port Kennedy project.

Director of The Golf Club group, John Crozier, confirmed he had
been negotiating with Pac-Asia representatives and was hopeful a
solution could be reached.


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

ARTELLA DESIGN: Winding Up Petition
-----------------------------------
A petition to wind up Artella Design and Contracting Company,
Limited was submitted on January 16, 2001 to the High Court of
Hong Kong by Chan Tit Honof or Room 333, Man Wo House, Wo Che
Estate, Shatin, New Territories.  The petition is scheduled to be
heard before the court on April 11, 2001 at 9:30 a.m.  


CENTUPLE MARGIN: Winding Up Petition
------------------------------------
A petition for the winding up of Centuple Margin Development
Company Limited was submitted by Lau Hung Chau to the High Court
of Hong Kong on February 2, 2001.  The petitioner's address is at
Room 1205, Yiu Wing House, Yiu On Estate, Ma On Shan, Shatin, New
Territories.  The petition is scheduled to be heard before the
court on April 18, 2001 at 9:30 a.m.


DOLLIANNE COMPANY: Winding Up Petition
--------------------------------------
Chan Chung Kan, of Room 824, Kwai Yan House, Kwai Fong Estate,
Kwai Chung, New Territories on January 4, 2001 submitted to the
High Court of Hong Kong a petition to wind up Dollianne Company
Limited.  The petition is scheduled to be heard before the court
on April 4, 2001 at 9:30 a.m.


GREATER CHINA: Posts Wider Net Loss of HK$19.85 Million
-------------------------------------------------------
Greater China Technology's Group's net loss ballooned to
HK$19.85M in the three months to January 31, due to stagnant
revenue growth and a sharp rise in expenses.  The portal operator
reported a HK$2.02M loss in the previous quarter.

In the most recent period, the company derived about 79.7 percent
of total revenue of HK$7.12M from interest earned mainly on
listing proceeds, a proportion comparable to the previous
quarter's.  Revenue from its core online operation totaled
HK$1.41M -- of which 63.2 percent was from advertising and the
remainder from advisory services -- 8.6 percent lower than the
previous quarter.  Meanwhile, administration expenses jumped 217
percent to HK$24.81M from the previous three months.

The results statement did not give a breakdown of administration
expenses but attributed the increase in losses to costs related
to its "ongoing efforts to increase and capitalize on market
awareness of its businesses and to introduce technological
innovations on its portals."


PARKWAY GARMENT: Winding Up Petition
------------------------------------
A petition to wind up Parkway Garment Factory Limited was
submitted to the High Court of Hong Kong on January 17, 2001 by
Yip Yuk of Room 1815, Lap Wah House, Lok Wah North Estate,
Kowloon, Hong Kong.  The petition is due to be heard before the
court on April 11, 2001 at 9:30 a.m.


TEXTREX LIMITED: Winding Up Petition
------------------------------------
Shum Tak Hoi, of Room 1027, Tak King House, Tak Tin Estate, Lam
Tin, Kowloon, on January 8, 2001 submitted to the High Court of
Hong Kong a petition to wind up Textrex Limited.  The petition is
scheduled to be heard before the court on April 11, 2001 at 9:30
a.m.


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

BARITO PACIFIC: JSX Suspends Trading for 1 Hour
-----------------------------------------------
The Jakarta Stock Exchange announced that it had suspended
trading in plywood maker Barito Pacific Timber (JSX: BRPT) for
one hour on Tuesday, March 6, 2001, from 9:30 a.m. to 10:30 a.m.  
The company had defaulted on an interest payment on 400 billion
rupiah worth of bonds, its trustee PT Bank Niaga said.  

Barito sold the bonds in June 1997 to repay debts owed to two
government-owned banks, Bloomberg said. The company failed to
make a January 10 interest payment, prompting bondholders to
convene a Bond Holder General Meeting on February 19.  At the
meeting, the bondholders decided to ask the company to pay in
full or in installments, but no payment has yet been made.

JSX had asked Barito to remark on efforts to settle its debt
liability.  According to a statement released by the exchange,
the company had delayed to respond to judgments of the Bond
Holder General Meeting dated of February 19, 2001 that the delay
has resulted in the company's debts (both principal and its
interest) and costs to be due.  

Barito Pacific said it had $378.7 million in debt as of January.
The company's shares have fallen 20 percent this year.


PANCA OVERSEAS: Among Those Required to Make Public Disclosure
--------------------------------------------------------------
The Jakarta Stock Exchange on February 28, 2001 said it would ask
listed companies whose shares are suspended to make public
details of their financial condition.

The JSX announced in a press release that it would reopen trading
in shares under suspension condition at negotiated market. The
trading resumption applies only if shares have a disclaimer
opinion on their financial statement for the past two consecutive
years; have been declared bankrupt or propose the postponement of
debt payment liability; and those that have neglected to disclose
all material corporate actions.

JSX has asked eight listed companies whose shares were
temporarily halted to submit a draft of their public comments.
Among these companies are PT Inti Indorayon Utama Tbk, PT
Waniaindah Busana Tbk, PT Keramika Indonesia Asosiasi Tbk and PT
Anwar Sierad Tbk. These companies should be prepared to give
details on their efforts to revive their assets.

JSX has also asked some companies for an explanation of why they
have being declared bankrupt by creditors and what actions they
have taken to manage their bankruptcy. They must also provide a
summary of peace-seeking patterns with creditors or the
Commercial Court, and the current status of the creditors' appeal
for bankruptcy. Among these companies are PT Davomas Abadi Tbk,
PT Putra Surya Perkasa Tbk, PT Concord Benefit Tbk and PT Panca
Overseas Finance Tbk.


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

MAZDA MOTORS: Moody's Lowers Ratings to Ba3
-------------------------------------------
On Tuesday, Moody's Investors Service downgraded the senior
unsecured debt ratings of Mazda Motor Corporation to Ba3 from
Ba1. The rating outlook is stable. Moody's says Mazda's earnings
and cash flow will remain fairly weak in the intermediate term,
despite expected benefits from its restructuring plan. Moody's
says Mazda is likely to face difficulties in reducing its huge
debt.  

Moody's believes sales in Japan's automotive industry will remain
depressed by historic standards at a cyclical low point of 6
million units, and will not recover significantly over the next
few years. Moody's notes that Mazda is heavily dependent upon
exports to the US and Europe, where markets are slowing down.

Moody's notes that Mazda is taking the following steps:

     - undertaking various cost-cutting measures
     - using a strategic program to further lower costs
     - reducing foreign exchange risk
     - enhancing its new model pipeline

Hiroshima-based Mazda Motor Corporation is Japan's fifth-largest
automotive manufacturer.


MITSUBISHI MOTORS: Moody's Lowers Debt Rating to Ba3
----------------------------------------------------
On Tuesday Moody's Investors Service downgraded the senior
unsecured debt ratings of Mitsubishi Motors Corporation (MMC) to
Ba3 from Ba1. The rating outlook is stable. Moody's says that
MMC's earnings and cash flow will remain fairly weak in the
intermediate term, despite expected benefits form its extensive
restructuring plan. Moody's believes that MMC will find
difficulty reducing its heavy debt burden -- the highest level in
the Japanese auto industry.

A series of recalls recently announced by MMC have damaged the
company's brand image, Moody's said, adding that it will take
some time for MMC to rebuild consumer confidence.

Moody's believes that MMC's operations in Japan, Europe, Asia and
other regions may show significantly weaker operating results.  
Moody's cites unit sales in Japan as having fallen, and where the
market is expected to continue to be depressed by historic
standards.

Mitsubishi Motors Corporation, headquartered in Tokyo, is Japan's
fourth-largest automotive manufacturer.


XEROX CORPORATION: Fuji Photo to Buy Half of Fuji Xerox Stake
-------------------------------------------------------------
Photo film maker Fuji Photo Film was set to announce plans on
Tuesday to buy 50 percent or Xerox Corporation's stake in their
Japanese joint venture Fuji Xerox, the South China Morning Post
reports.

Media reports said the deal would most likely be in the
neighborhood of US$1.5 billion, the Post said.  Xerox's share
price reportedly rose nearly 20 percent since a Friday media
report on the deal.  

Thirty-nine-year-old joint venture Fuji Xerox produces office
printers and copiers, and has a market share of 20 percent in
Japan, where it is the country's third-largest supplier of
copiers.

Xerox announced in October that it would sell half of its stake
in Fuji Xerox, the Post said.  It has US$17 billion in corporate
debt.


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

DAEWOO INTERNATIONAL: Korea Exchange Says Lawsuit is Premature
--------------------------------------------------------------
Korea Exchange Bank has told the U.S. Bankruptcy Court for the
Southern District of New York that it should decline to let the
Official Committee of Unsecured Creditors of Daewoo International
(America), Inc., file their proposed $400 million lawsuit.

The suit would target Hanvit Bank, Korea First Bank, Resolution
and Finance Corp., Chohung Bank, Koram Bank, Seoul Bank,
Industrial Bank of Korea, Shinhan Bank and Korea Exchange Bank,
Daewoo Corporation, Daewoo International Corporation, Daewoo
Engineering & Construction Co., Ltd., Daewoo U.K. Ltd., and Korea
Asset Management Corporation.


DAEWOO MOTOR: General Motors Will Decide on Acquisition in April
----------------------------------------------------------------
Sources, who were not identified, were cited by the Digital
Chosun as disclosing General Motors USA (GM) will announce its
position on its planned acquisition of Daewoo Motor in April.  
The sources told Chosun that GM held its board of directors
meeting at its Detroit head office and agreed to make its final
decision at the next board meeting in early April.  

GM reportedly plans to concentrate on taking over three major
production plants in Korea, as well as Daewoo's sales unit.  A
report by Bloomberg Tuesday said GM is reluctant to take over the
company's largest production plant in Bupyeong because it is more
than 30 years old.  The plant has an estimated 1.2 trillion won
value as produces more than half of the company's new car
production.  GM is interested in purchasing plants in Kunsan and
Changwon, both built in the early 90's, Bloomberg said.

The Kunsan plant has an annual production capacity of 300,000
units, while the Changwon plant has a capacity of 200,000 units.


DAEWOO SHIPBUILDING: Negotiates with Newcastle for Investment
-------------------------------------------------------------
The president of Daewoo Shipbuilding and Marine Engineering says
the shipbuilder is negotiating with Newcastle Heavy Industries
for an investment in an Australian shipyard. Shin Young-Kyun said
Daewoo would provide Newcastle with technology and management
skills, Business Day Thailand reports.  Newcastle is owned by a
group of private investors.

"The two companies will soon sign a memorandum of understanding
on the deal," Shin said.  He did not give further details,
Business Day reported.

Daewoo Shipbuilding has been placed under a "workout"
rehabilitation program by its South Korean creditor banks. It
became independent of the bankrupt Daewoo Group in October last
year.

"Except for some project loans, we will take no loans at all this
year and will graduate from the workout program," Mr. Shin said.  
He was referring to the debt rescheduling granted to the shipyard
by its creditor banks.

By 2003, Daewoo Shipbuilding plans to reduce liabilities from the
present 2.59 trillion to 2.27 trillion won in 2003.  It plans to
increase capital from the current 623 billion won to 1.18
trillion and to pay off 52 billion won in debts this month. In
addition, the shipbuilder plans to reduce debt owed to financial
institutions to 500 billion won by 2003 -- 300 billion won this
year, 170.6 billion won next year and 220.7 billion won in 2003.


DONG AH: Creditors Choose Court Receivership
--------------------------------------------
Creditors of Dong-Ah Construction Ind. submitted a recommendation
to the court Wednesday that the court rule in favor of court
receivership for the bankrupt construction firm.

The Digital Chosun reported Thursday creditors have agreed to
maintain current liquidation procedures for Dong-Ah and that they
are ready to establish supportive moves for the liquidation, such
as a debt-to-equity swap and interest reduction.


HYUNDAI ENGINEERING: Six Banks to Guarantee $400 Million Loan
-------------------------------------------------------------
Korea Exchange Bank said six domestic banks will provide payment
guarantees on a new $400 million loan for Hyundai Engineering &
Construction Co., The Asian Wall Street Journal reports.

Among the banks are Korea Exchange Bank, state-run Korea
Development Bank, and Export-Import Bank of Korea.  The names of
the three other guarantors were not disclosed.  The guarantee
came after Hyundai Engineering's leading shareholders agreed to a
debt-for-equity swap, the Journal said.

Hyundai Engineering reduced its debt from 5.7 trillion won in May
last year to 4.5 trillion won by the end of the year.  It seeks
to further reduce it to 3.8 trillion won by the end of this year.


HYUNDAI GROUP: No Parachute for Hyundai Asan
--------------------------------------------
The Seoul government and creditor banks refused on Tuesday to aid
the Hyundai Group's North Korean business arm Hyundai Asan, the
Korea Herald reports, after a $10 million default on parts of its
tourism fee payments to the North in February.

Observers, who were not identified, noted that this might result
in the suspension of Hyundai's cruise ship services to scenic Mt.
Kumgang on the North's east coast.

Hyundai Asan wired only $2 million, or one-sixth, of the monthly
tourism fee at the end of February to the North, saying the
remaining $4 million will be sent in March.  The company asked
five creditors to extend 50 billion won in emergency loans to
avoid defaulting, but the creditors, which included the Korea
Exchange Bank, rejected the request, the Herald said.

The company reportedly then leaked to the local press its
intentions of asking the government to bail it out, but a
Ministry of Unification official, who was not identified,
announced, "The government is not in a position to extend
financial help to private firms, like Hyundai."  The Herald said
the financial assistance would have been intended for state loan
guarantees, approval of the lucrative casino business on Mt.
Kumgang cruise ships and state-run firms' participation in the
tourism project.

"The ministry has not received any official recommendations for
financial help from Hyundai. The fundamental reason for Hyundai
Asan's liquidity crisis is the expensive tourism fee. Thus,
Hyundai should focus its efforts on reducing the fee payments in
the first place," the government official said.


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

AUTOWAYS HOLDINGS: May Incur Losses of RM51 Million in Suit
-----------------------------------------------------------
In a letter to the Kuala Lumpur Stock Exchange dated March 7,
Autoways Holdings Berhad said the company could incur a loss of
RM51,681,264.14 together with interest and cost if PB Securities
Sdn. Bhd. is successful in its legal suit.  

PB Securities claims:

     a) The sum of RM51,681,264.14 as principal, interest and all
other sums of money due and owing under the margin facility as at
July 31, 1998;

     b) Interest on RM51,681,264.14 at the rate of 18 percent per
annum from August 1, 1998, until the date of full payment and
interest not paid at the end of each month is to be capitalised
and added to the principal amount and thereafter further interest
at 18 percent per annum until full payment;

     c) Costs;

     d) Such further and other relief.

PB is claiming a sum of RM51,681,264.14 together with interest
and costs against the Autoways under an alleged letter of
guarantee dated October 7, 1997, in respect of certain margin
facilities allegedly granted by PB to ADSB. The plaintiff claims
that ADSB has defaulted under the terms of the margin facility
agreement and had called on the guarantee by the company.

Autoways has instructed its solicitors to resist PB's claim.  The
Amended Writ of Summons was filed on February 23, 2001, and
served on the company on the same day.  The company says there is
no further operational and financial impact on the group as the
claims had been fully provided for in the audited accounts for
year ending December 31, 1998, and December 31, 1999, on the
basis of prudent accounting principle. However, as noted in the
1999 Annual Report, the directors of Autoways said these claims
are not valid and ADSB is not liable for the amount.


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

KULTHORN KIRBY: To Delist from SET; Prepares Rehabilitation Plan
----------------------------------------------------------------
Kulthorn Kirby Plc, in a letter to the Stock Exchange of
Thailand, said it has prepared a rehabilitation plan according to
the SET's regulation and sent it to SET on January 27, 2000.  The
SET had earlier said the company faced possible delisting. The
company reported progress on the plan's execution and its actual
financial performance compared to projections.

To this end, the company says it plans to:

-- Improve products to meet international standards,
     -- Decrease production defects,
     -- Develop products to meet customer satisfaction,
     -- Develop the company and factory to get a certificate of
production standard,
     -- Increase utilization rate, and
     -- Decrease production costs.



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
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