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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

           Wednesday, March 14, 2001, Vol. 50, No. 51



                           Headlines


A U S T R A L I A

AUSTAR UNITED: Forecasts Loss Of $320M


C H I N A   &   H O N G  K O N G

DONG YING: Petition To Wind Up
HAWAII ENGINEERING: Petition For Winding Up
ACROSSASIA MULTIMEDIA: Reports Net Loss of HK$171.8M


I N D O N E S I A

ASTRA GROUP: Six Subsidiaries Settle Debt
CITRA MARGA: To Firm Up Debt Restructuring Deal
CITRA BAKTI: Under IBRA Assessment


J A P A N

SOGO COMPANY: To Forgo Rehab Plans For Four Outlets


K O R E A

HYUNDAI PETRO: Creditors Ask Hyundai To Sell Styrene Mono Ops
DONG AH: Court Rules To Liquidate The Company
HYUNDAI ENGINEERING: To Get $200M Loan From Two Banks
SEOUL BANK: Posts W519.8B Net Loss In 2000


M A L A Y S I A


IDRIS HYDRAULIC: TAFC To Scrap Terms On Shares Sale


P H I L I P P I N E S


PHILIPPINE AIRLINES: Union Files P2 Billion Monetary Claims
NATIONAL STEEL: Awaits Signals From Malaysian Government


S I N G A P O R E

ASIA PULP: Pressed By Creditors, Appears In Court


T H A I L A N D

THAI PETROCHEMICAL: Implements Approved Reorganization Plan


     - - - - - - - - -


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


AUSTAR UNITED: Forecasts Loss Of $320M
--------------------------------------
An AAP report states Austar United Communications Ltd has
projected high losses for the year 2001. Final figures will be
released on Thursday.

"Currently, the company estimates that its operating loss after
abnormal items will be approximately $320 million for the year
ending on 31 December, 2001," Austar said in the ASX statement.

Following the Australian Stock Exchange (ASX) release that the
regional pay-TV operator's securities would be placed in pre-
open, the company issued an announcement calling for a trading
halt on its shares.


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


DONG YING: Petition To Wind Up
------------------------------
A petition for the winding up of Dong Ying Computer Label &
Embroidery Company Limited was filed in the high court of Hong
Kong on January 22, 2001, by Po Sang Bank Limited, located at 71
Des Voeux Road Central, Hong Kong. The petition will be heard
before the court on April 11, 2001 at 10:00 AM.


HAWAII ENGINEERING: Petition For Winding Up
-------------------------------------------

A petition for the winding up of Hawaii Engineering Company
Limited was filed in the high court of Hong Kong on January 17,
2001. Tsang Wing Tong of room 418, Nam Yat House, Nam Shan
Estate, Kowloon, Hong Kong, filed the petition. Hearing of the
petition before the court will be on April 11, 2001 at 9:30 AM.


ACROSSASIA MULTIMEDIA: Reports Net Loss of HK$171.8M
----------------------------------------------------

AcrossAsia Multimedia has reported a net loss of HK$171.8 million
for the year, 5.1 percent below the HK$181 million forecast in
its listing prospectus.  The regional provider of broadband
communications services recorded a net profit of HK$4.14 million
in 1999. Turnover increased 43.6 percent year over year to HK$391.9
million, up from HK$272.9M a year ago.



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


ASTRA GROUP: Six Subsidiaries Settle Debt
-----------------------------------------
Six subsidiaries of the Astra Group have settled their debts to
the Indonesian Banking Restructuring Agency (IBRA), Raymond van
Beecum of Asset Management Credit (AMC) told IndoExchange.

The companies, six of the 14 subsidiaries belonging to the group,
are: PT Bina Busana Internusa, with debt totaling Rp6.86 billion;
PT Inti Ganda Perdana, with Rp33.80 billion debt; PT Astra
International, with debt amounting to Rp92 billion; PT Astra
sedaya Finance, with debt amounting to Rp11.80 billion; PT
Multifrance Motor, with total debt of Rp4.89 billion; and PT
Tridarma Wisesa, with debt totaling Rp41.6 billion.

Meanwhile, IndoExchange reported that four other companies under
the group are undergoing the process of assessment, establishing  
memorandum of understanding, and litigation. These are: PT Gemala
Kempa Daya; PT Logam Sari Beraindo, with Rp19.83 billion debt; PT
Wahana Eka Paramitra, with debt amounting to Rp109.18 billion;
and PT Eltrindo Footwear, with debt totaling Rp239.72 billlion.

Another subsidiary, PT Indokarlo Perkasa, with a recorded debt of
Rp19.58 billion is still in the process of signing a memorandum
of understanding. Another two are undergoing the loan agreement
process. These are PT Surya Artha Nusantara Finance (with
Rp106.16 billion debt) and PT Surya Hutani Jaya (with Rp35
billion debt). PT Sawit Asahan Indah, with Rp23.83 billion debts,
is currently in litigation.


CITRA MARGA: To Firm Up Debt Restructuring Deal
-----------------------------------------------
Citra Marga Finance BV is likely to firm up its debt deal for
restructuring. With a total of Rp183.75 billion debt, Citra Marga
is one of the three companies of Siti Hardiyanti "Tutut" Rukmana
that will sign debt agreements with the Indonesian Banking
Restructuring Agency (IBRA), the IndoExchange reported Monday.
That would make 13 companies belonging to Tutut that would be
handled by the agency, to which all of them owed a total of
Rp1.47 trillion.

"The three companies, previously managed by Citra Lamtoro Gung
now belong to Asset Management Credit (AMC) division and the
other ten are under the Asset Management Investment (AMI)," AMC
Representative Raymond van Beekum said in the report.


CITRA BAKTI: Under IBRA Assessment
----------------------------------
PT Citra Bakti Margatama is one of the two companies of Siti
Hardiyanti "Tutut" Rukmana undergoing scrutiny and assessment by
the Indonesian Banking Restructuring Agency (IBRA) before they
get a fresh deal from the agency for debt restructuring,
IndoExchange reported. Citra Bakti owes IBRA a total of Rp434.06
billion in liabilities.

The other Tutut company, PT Citra Mataram Satriamarga Persada has
debts amounting to Rp153.73 billion. With the addition of the
two, companies belonging to Tutut that are being handled by the
IBRA will reach to 13, with a combined debt of Rp1.47 trillion.

The eleven other companies are: PT Cipta Isthika Rucitra with
total debts of Rp6.57 billion; PT Cipta Televisi Pendidikan
Indonesia with total debts of Rp88.76 billion; PT Citra Industri
Logam Mesin Persada with total debts of Rp33.97 billion; PT Citra
Lamtoro Gung Persada with total debts of Rp17.78 billion; PT
Citra Makmur Asia with total debts of Rp122.09 billion; PT Citra
Samudra Terminal Petikemas with total debts of Rp19.13 billion;
PT Citra Sarana Bahari Persada with total debts of Rp1.72
billion; PT Graha Garuda Tiara Indonesia with total debts of
Rp74.73 billion; PT Trihasra Sarana Jaya with total debts of
Rp19.13 billion; PT Tropika Selaras with total debts of Rp212.18
billion; and Citra Marga Finance BV with Rp183.75 billion debts.


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


SOGO COMPANY: To Forgo Rehab Plans For Four Outlets
---------------------------------------------------
Sogo Company, the troubled retail chain, will forgo its
rehabilitation plans for four of its outlets, Jiji Press English
News Service reported. The four outlets are the Kokura and
Kurosaki outlets in Fukuoka Prefecture, the Toyota outlet in
Aichi Prefecture, and the Nara outlet in Nara Prefecture.  

Sogo decided to scrap its rehabilitation plans because of the
improbability of success, despite the request of the local
communities, a source close to the decision told Jiji Press.
Instead of pursuing the reconstruction plans, the company will
start processing the bankruptcy procedures for the stores, which
were closed late last year.


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


HYUNDAI PETRO: Creditors Ask Hyundai To Sell Styrene Mono Ops
----------------------------------------------------------------
Creditor Banks of Hyundai Petrochemical Company Limited formally
requested the company sell its two styrene monomer operations to
local companies, the AFX reported, citing a news item from Korea
Economic Daily. Late last year this Hyundai unit committed to
sell the operations before March 2001 ends, after it received a
loan of 90 billion won.   

"The creditors will take some action after closely watching the
company's restructuring efforts by the end of March," a creditor
bank official said.


DONG AH: Court Rules To Liquidate The Company
---------------------------------------------
Seoul District Court has ruled in favor of the liquidation of
Dong Ah Construction, the nation's largest builder. As a result,
the company will be delisted in the next two weeks, should the
company fail to seek an appeal.

"If its shares became garbage, shareholders will once again
suffer big losses," said one Korea Stock Exchange official,
according to a Korea Herald report.

An analyst at Hyundai Securities said "Dong Ah's liquidation may
be the last chapter of restructuring in the construction sector,
though there's still a lot of work needed at Hyundai Engineering
& Construction. But it is a positive sign to other healthy
construction companies."

On the other hand, Dong Ah's affiliate, Korea Express Company,
took a blow as its stock value dropped because of the debt
payments guarantee worth 700 billion won it gave to Dong-Ah
Construction.


HYUNDAI ENGINEERING: To Get $200M Loan From Two Banks
-----------------------------------------------------
Ailing Hyundai Engineering & Construction Company (HEC) will be
granted foreign currency loans worth $200 million from both the
Korea Development Bank (KDB) and Korea Exchange Bank (KEB), the
Financial Supervisory Service said on Friday, the Korea Herald
reported. But, only on condition that HEC will be able to settle
the loan with the two creditors as soon as its foreign lenders
award the builder its loan of $400 million, a financial watchdog
said in the report.  

For the $200 million loan to be given to HEC, KDB will act as
payment guarantor. KEB and six other creditor banks will take
charge as payment guarantor to the other $200 million.


SEOUL BANK: Posts W519.8B Net Loss In 2000
------------------------------------------
Seoul Bank, the Korea Herald reported Monday, incurred 519.8
billion won in net loss last year, generating total sales of
2.001 billion won. Its ordinary losses were pegged at 740.7
billion won.

Through a shareholders' meeting, Herald said, the bank has three
new appointed outside directors, Kim Kwang-doo, a professor of
Sogang University, Cho Wang-ha, vice chairman of the Kolon Group,
and Park Sung-hee.


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


IDRIS HYDRAULIC: TAFC To Scrap Terms On Shares Sale
----------------------------------------------------
The board of directors of Idris Hydraulic (Malaysia) Bhd
announced to the Kuala Lumpur Stock Exchange (KLSE) on Monday,
March 12, 2001, that the Company had received a letter from TA
First Credit Sdn Bhd (TAFC). The March 8 letter, stated that TAFC
will not proceed with the supplemental debt restructuring
agreement with the company, as Idris has not agreed to TAFC's
request to remove the standstill condition with regards to the
sale of shares of Prime Utilities Berhad.

The board wishes to reiterate that as far as it is
concerned, all parties to the debt restructuring process under
the auspices that the debt corporate restructuring committee are
still re-negotiating on the further extension and the terms and
conditions of the supplemental debt restructuring agreement.


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


PHILIPPINE AIRLINES: Union Files P2 Billion Monetary Claims
-----------------------------------------------------------
Philippine Airlines Employees Association (PALEA), the employees'
union of Philippine Airlines Inc (PAL), filed monetary claims to
the SEC Friday against the carrier's management for 12,456
present and former employees, Business World reported on Monday.
The claims, totaling P2.029 billion, stemmed from the
management's failure to correct distortion of wages resulting
from issuances of Presidential Decrees (PD) 1614, 1713, and 1123,
including the wage orders 1 to 5.

The monetary amount of employees' claims was based on National
Labor Relations Commission's (NLRC) computation on the
differential pays for the concerned employees, explained a PALEA
officer. NLRC granted each employee a maximum of P350,450.87 in
differential pay.

At present, PALEA has a membership of 3,500 ground crew workers.


NATIONAL STEEL: Awaits Signals From Malaysian Government
--------------------------------------------------------
The fate of National Steel Corporation (NSC) rests with the
Malaysian government's plans for the beleaguered firm, Business
World reported on Friday.

Hottick Investments Ltd, a Hong-Kong based firm that owns 82.5
percent of NSC, has been under control of the Malaysian
government agency Danaharta Pengurusan Berhad, and is being
operated by Malaysia's Renong Berhad.

According to Trade and Industry secretary Manuel A. Roxas II, the
Philippine government is waiting for decisions from NSC's
majority shareholders. The Philippine government owns 12.5
percent of the company.

Roxas also said that the Malaysian government should be consulted
on the NSC issues before the Philippines government can take its
own measures.

On Thursday last week, Roxas met with Malaysia's International
Trade and Industry Minister Rafidah Aziz to talk about enhancing
trade relations between the two countries. They also discussed
issues regarding NSC, as well as plans for the steel firm.

"We have conveyed NSC's situation to Ms. Aziz, as well as our
desire to come up with a solution for the company," Roxas told
World.  Aziz, on the other hand, would apprise her government
about the situation.

Until 1995, the Philippine government controlled NSC. It sold
82.5 percent of the firm to Wing Tiek Holdings Berhad of
Malaysia, which later sold its stake to Hottick in 1997.  

Hottick failed to revive the company, beleaguered by debts that
swelled to P14 billion in 1999.

Roxas did not discuss talks between NSC and Ispat International
NC, a Dutch firm, which is reportedly interested to takeover
NSC's operations. The possible entry of Ispat would dilute
Hottick Investments' stake in the local steel firm.


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


ASIA PULP: Pressed By Creditors, Appears In Court
-------------------------------------------------
Asia Pulp & Paper Company appeared in a Singapore court on March
12, as the respondent to a case -- one of the 7 cases against
company -- filed by Credit Lyonnais SA, pressing the giant paper
and pulp company to repay its debt amounting to $2.2 million,
said a Bloomberg report.

The company's bondholders, together with banks and export credit
agencies in New York, met on the same day to discuss moves
regarding their claims against the company.

"The company has signaled that it is prepared to face its
problems head on and creditors intend to participate, monitor and
drive that process. To the extent that it is not, creditors will
work together to assert their claims," said Robert Koenigsberger,
managing director of Gramercy Advisors, an Asia Pulp bondholder.

Asia Pulp has been under pressure to restructure its debt of $12
billion. Last week the company appointed Credit Suisse First
Boston to take charge of its debt revamp, while J.P. Morgan Chase
& Co. was named adviser on asset sales matters.

Also seeking repayment is Union des Banques Arabes et Francaises,
to whom the company owed $2 million debt intended for trade
financing. ABN Amro Holding NV, Bank of East Asia Ltd and Avebe
(Far East) Pte have also filed suits against Asia Pulp.

Asia Pulp has a debt burden that is 180 times larger than its
market value, and is facing problems servicing its debt six
months after a proposal to change its $2 billion debt terms was
junked by U.S. regulators. It has a total debt of $1.5 billion
due this year, with $25 million due on April 1. Added to that,
about half of its long-term debt is due by December 2003.


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


THAI PETROCHEMICAL: Implements Approved Reorganization Plan
-----------------------------------------------------------
Thai Petrochemical Industry Public Company Limited (TPI), through
Peter Vassiliou, director of Effective Planners Limited, reported
to the Stock Exchange of Thailand the implementation issues of
its approved reorganization plan and the transactions completed
on March 9.

Per the Central Bankruptcy Court's order, made on February 15,
2001, to increase TPI's registered share capital from 19,500
million baht to 81,000 million baht, 915,214,948 shares were
issued to creditors of the company. These shares have been issued
in exchange for conversion by creditors into equity of interest
accrued on debt during 1998-2000 at rates as specified within the
reorganization plan.  Subscription proceeds amount to
32,648,424,817.50 baht. Consistent with the terms of the approved
plan, creditors have also agreed to forego numerous prior
contractual claims, which would otherwise be enforceable against
the company.  

These shares constitute 75 percent of the total expanded share
capital of TPI.  These shares are also subject to trading
restrictions for the duration of the reorganization plan, and  
not able to be traded separately from the underlying debt.

TPI and several of its key subsidiaries entered into a cross
guarantee arrangement under which all restructuring plan
obligations of the relevant companies are to be supported by each
of the other relevant companies.  Details of the subsidiaries
having entered into this arrangement include TPI Oil Company
Limited, Thai ABS Company Limited, Thai Polyurethane Industry
Company Limited, TPI Polyol Company Limited, TPI Aromatics Public
Company Limited, and TPI Energy Company Limited.

All major assets of the company, including but not limited to
plant and equipment and land and/or buildings, which were not
previously encumbered, have been encumbered in favor of all of
the creditors under the reorganization plan.



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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