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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

                 Monday, March 26, 2001, Vol. 4, No. 59

                               Headlines


A U S T R A L I A

DAVNET LIMITED: Forecasts Positive EBITDA
DAVNET LIMITED: ASX Halts Trading
DAVNET LIMITED: Unveils Plans to Raise Goal of $55 Million
HIH INSURANCE: ACPT Reviews ACY's Lease Exposure
HIH INSURANCE: ASA Examines HIH Collapse
MAXIS CORPORATION: Court to Hear ASIC vs. Maxis April 23
MAXIS CORPORATION: Appoints New Directors and Chairman
MAXIS CORPORATION: Chairman Optimistic About ASIC Case
SOUTHERN EQUITIES: Alan Bond Settles $13 Million Art Case
TENNYSON NETWORKS: ASX Halts Trading
TENNYSON NETWORKS: Requests Suspension from Quotation
TENNYSON NETWORKS: States Reasons for Suspension Request


C H I N A   &   H O N G  K O N G

KMK COMPANY: Three Creditors File Bankruptcy Suit
MONKEY KING: Delisting Possible
WAI KEE: Requests Trading Suspension; Chairman, VC Arrested


I N D O N E S I A

APAC INTI: IBRA to Own 51% Stake


J A P A N

TOKYO MUTUAL: Filed for Bankruptcy Court Protection
TOKYO MUTUAL: Daiwa Bank Writes Off Exposure, Expects Loss


K O R E A

HYUNDAI GROUP: HEC Get Chung's 15% Stake
HYUNDAI HEAVY: Summary of 27th General Shareholders' Meeting


  -  -  -  -  -  -  -  -  -  -

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


DAVNET LIMITED: Forecasts Positive EBITDA
-----------------------------------------
On March 15, Davnet Limited announced operating and financial
results for the six months ended December 3l, 2000.

Total operating revenues were A$34,309,000, or about 105 percent
higher than at the end of the corresponding period in 1999.

Davnet said revenues are on course for full-year figures of
approximately A$95 million, based on the current business plan.
This result is in line within the company's expected budgeted
revenue range of A$90-105 million.

The operating loss before abnormals and tax was A$33,168,000.

The first half results also include an abnormal loss of
A$11,196,000, which reflects a decision by the board of directors
to halve the goodwill amortization period and to take significant
write-offs of goodwill and other items.

In conjunction with this decision, the board announced that a
quarterly business and operational review will be conducted in
order to update the investment community on developments
concerning the company.

Net tangible asset backing per share was 12.8 cents compared with
16.9 cents in the previous corresponding period.

"The doubling of operating revenues - plus the forecast
expectations that our Australian operations are to become EBITDA
positive during April 2001 - are the two most significant
milestones we are announcing today," said Davnet Ltd's group
managing director and CEO Mr. Robert H. Turner.

Commenting on Davnet's overall development, Turner said, "Our
growing commercial success reflects our proven ability to deliver
the power of a pure Internet Protocol-based broadband network,
providing customers - and our customers are at the very center of
everything we do - with cost-effective, value-added solutions. It
is also a reflection of our shift to being a service provider
rather than a network provider."

"The groundwork laid in the first half of the financial year as
we strengthened our management leadership and simplified our
operations is expected to have an increasingly positive effect on
revenue growth in the second half."

Davnet said that during the second half of the financial year to
date, the company placed an even stronger emphasis on generating
revenues, particularly by strengthening sales teams, while
placing a sustained focus on efficiency in each of its regional
operations, in Australia, Asia and North America. "We have
implemented a sensible and sustained program of cost and
expenditure containment. We have made significant operating cost
reductions since January 2001. We are also carefully managing our
capital expenditure by leveraging on agreements that allow us to
access and serve customers using third-party's infrastructure,"  
Turner said.

Davnet's new approach to business is expected to result in the
company's most mature operations, those in Australia - Davtel,
QAI Australia Ltd, e-DataGroup Pty Ltd and Smartvision
(International) Pty Ltd - turning EBITDA positive during April,
ahead of earlier Forecasts. According to Turner, "This is a
considerable achievement and I would like to thank all our staff
and stakeholders for their past and continuing support and
contributions."

"The next step is to strengthen our Australian success and
replicate these achievements in Asia and North America; the
portents are already looking very positive."


DAVNET LIMITED: ASX Halts Trading
---------------------------------
The Australian Stock Exchange announced on March 21, 2001 that
the securities of Davnet Limited will be placed in pre-open,
pending the release of an announcement by the company.

ASX said that unless it decides otherwise, the securities were to
remain in pre-open until the earlier of the commencement of
normal trading on Friday, March 23, 2001, or when the
announcement is released to the market.


DAVNET LIMITED: Unveils Plans to Raise Goal of $55 Million
----------------------------------------------------------
Davnet Limited (ASX: DVT), the international provider of
integrated broadband communications solutions, announced March
22, a series of capital raising initiatives which ensure that the
company is fully funded on its current business plan.

The current business plan forecasts an external funding
requirement of around A$26 million by the end of the 2002
financial year. It is expected that the initiatives will involve
the raising of at least A$35 million through a private placement,
an equity-linked working capital facility and a converting note.
A$25.4 million of the funding facilities are already in place and
executed. The company has additionally put in place A$8 million
of vendor financing.

"Davnet now has more than sufficient funds to complete our
current business plan. This plan forecasts an approximate
doubling of revenues in the current financial year and an
approximate doubling again in the 2002 financial year," said
Davnet Ltd's group managing director and CEO, Mr. Robert H
Turner.

"These equity-based facilities will allow us to pursue vigorously
our strategy of driving revenue growth in our Australian, Asian
and North American markets by giving us funding security together
with scope to supplement our needs if required. As a result of
this capital raising Davnet has ensured that its balance sheet
has strengthened and will continue to maintain minimal leverage."

BNP Paribas Equities Australia Limited (BNP Paribas) is the
Manager, Arranger and Placement Broker for the transactions.

The private placement has been completed and involved the
placement of 38,437,000 ordinary shares with investors at a price
of A$0.27 a share. The placement raised A$10.4 million.

BNP Paribas has agreed to provide Davnet with a three-year
equity-linked working capital funding facility. The facility
allows Davnet to drawdown new funds as and when needed. The
facility provides for a maximum funding of A$15 million over the
period.

As part of the capital raising program to raise a minimum of A$35
million, BNP Paribas and Davnet have committed to enter into a
memorandum of understanding for Income-Secured Converting Notes
to raise a minimum of A$10 million with the potential of up to
approximately A$30 million. This will expand the range of
additional funding available to the Company from A$35 million to
as much as A$55 million. The terms and conditions of the notes,
due on September 30, 2004, are expected to be finalized over
coming weeks.

Shareholder approval will be sought in accordance with ASX
Listing Rule 7.1 to permit the issue of new equity under the
equity-linked working capital facility and converting notes at or
around future market prices. The date for that meeting has yet to
be set.

"As we announced in our recent interim results report, we are
strengthening our sales efforts to increase penetration levels in
all the buildings we service while improving operational
efficiencies through our on-going and sustained program of cost
and expenditure containment," Turner said.

"We are extending our reach to customers in new buildings through
a carefully managed capital expenditure program. This program
identifies revenue-generating customers and leverages on third
parties' infrastructure until such time as demand justifies
migrating to a Davnet in-building Ethernet infrastructure."


HIH INSURANCE: ACPT Reviews ACY's Lease Exposure
------------------------------------------------
The following press release from the Australian Commercial
Property Trust was posted on the Australian Stock Exchange on
March 19, 2001:

As responsible entity for ACY, we are reviewing ACY's lease
exposure to FAI General Insurance Company Limited, given the
announcement on 15 March 2001 by its parent company, HIH
Insurance Limited, of the appointment of a provisional
liquidator.

Stockland will make a further announcement regarding the likely
impact on future earnings of ACY as soon as it has reviewed its
position.


HIH INSURANCE: ASA Examines HIH Collapse
----------------------------------------
On March 20, 2001, the Australian Shareholders' Association
released an article for The Australian newspaper entitled, "The
Debacle of the HIH Collapse".  The article was also posted on
ASA's website.

"When a company like HIH collapses, shareholders are entitled to
know what went wrong and why," ASA said.

ASA said in the article that APRA should have intervened to
protect policyholders' interests when the company's share price
fell from $1.05 to 45 cents in September 2000 following the
announcement of the $22 million loss in the second half of 1999-
2000.  It said that APRA should also have been alerted by
conjecture that HIH would have difficulty in meeting new capital
hurdles.

ASA voiced the opinion that the market was kept in the dark in
the days leading up to the announcement of the company's second
half loss last year and has been in the dark ever since. It
chided regulators and ASIC in particular, saying that they should
ensure companies meet their disclosure obligations by keeping the
market properly informed.

ASA cited as an example the HIH board telling shareholders in
June of last year that "the performance during the current six
months should have a positive impact on the market".  It said
that by December 15, shareholders were being told that "the board
is of the opinion that the reserves are adequate and this is
supported by very recent independent external advice sought by
the board as part of HIH's current restructuring process".

The Australian Stock Exchange was also censured for enforcing the
recent suspension of the company's shares, ASA said.

ASA said it is hard to avoid the conclusion that shareholders did
too little, too late.  It said many individual shareholders were
misled by HIH's public assurances of the healthy state of the
company's operations and reserves.  The cash outflow of some $678
million from operating activities in the 1999/2000 year which
followed an outflow of $341 million the previous financial year
did ring alarm bells but obviously not loudly enough, ASA said.

ASA identified the board of HIH as being culpable by saying,
"Directors appear to have allowed themselves to be treated
somewhat contemptuously in the past by management. Clearly the
board failed to get a grip on the company's deteriorating
position."

"When the board finally exercised some control over the company
the damage had already been done. The board and management
changes that were initiated by the board in October last year
were probably two to three years overdue," it said.

ASA concluded that there are lessons for all involved in the
collapse of HIH, and in particular, harsh ones for shareholders,
policyholders and creditors.


MAXIS CORPORATION: Court to Hear ASIC vs. Maxis April 23
-----------------------------------------------------------
The Board and Management of Maxis Corporation Limited informed
the Australian Stock Exchange on March 5, 2001 that at each
of the meetings of creditors scheduled on that same day, for ARBT
Pty Ltd (Heartland Communications) and ABT Supplyline Pty Ltd,
creditors voted unanimously to adjourn the meeting to March 22 so
that the administrator could consider and prepare a written
report on the proposal for a deed of company arrangement
submitted by Maxis.

Maxis said in the press release that they planned to meet the
administrator over the next few days to further explain and fine-
tune the proposal, in order to maximise the chance of a positive
recommendation to creditors by the administrator.

Maxis appeared on the same day before Austin J of the NSW Supreme
Court for a hearing date to be set for the ASIC v Maxis matter.
Judge Austin stood the matter over to the April 23 , so that
there would by then be a clearer indication of the evidence from
the parties, before setting a hearing date for sometime
in May.


MAXIS CORPORATION: Appoints New Directors and Chairman
------------------------------------------------------
Maxis Corporation Limited announced the appointment of Mr.
Nicholas Swan and Mr.Vaz Hovanessian as two additional members to
its board of directors March 9, 2001, effective 10:00 a.m. of the
same day.

Swan, who joined the board as a non-executive
director, is an experienced corporate advisor and holds a Masters
Degree (Economics) from Cambridge University, an MBA from
Macquarie University and INSEAD in France, is a Chartered
Accountant and an Associate of the Securities Institute of
Australia. He is currently also a director and company secretary
of Australian Management Ltd., the responsible entity for the
Peppers Hotel Trust.

Vaz Hovanessian, who had recently re-joined the company as
company secretary and CFO, has now also re-joined the board as
executive chairman. He holds qualifications in Accounting and
Finance, is a CPA and a Fellow of the Chartered Secretaries
Australia.


MAXIS CORPORATION: Chairman Optimistic About ASIC Case
------------------------------------------------------
In a company disclosure to the Australian Stock Exchange dated
March 16, 2001, Maxis Corporation Limited executive chairman V.
Hovanessian said shareholders will be aware that voluntary
administrators were appointed to two of Maxis' subsidiaries, ABT
Supplyline Pty Ltd and ARBT Pty Ltd (Heartland Communications) in
January.

These companies were acquired in July 2000 as part of the
Australian Business Technologies Pty Ltd (ABT P/L) Group of
Companies.  Included within the ABT Group, and its most
profitable company, was NDT Pty Ltd (trading as Managed Networks)
which was not placed in Administration. This company continues to
trade profitably and sustain Maxis.

Following the appointment of the administrators, ASX suspended
trading in the company's shares pending release of additional
information. Shortly after, on February 6, Compaq Australia
appointed a receiver to ABT P/L, claiming it had a valid charge
over its assets.

Following these events, ASIC commenced proceedings in the Supreme
Court of NSW to appoint a receiver or liquidator to the parent
company, Maxis Corporation Ltd. This action is still pending and
unless an agreement is reached with ASIC, the matter will appear
before the courts on April 23, for a hearing date to be set.

In recent days Maxis has presented a proposal for
consideration by the administrators, the receiver and the
creditors of the subsidiaries, whereby the creditors are expected
to receive 100 cents in the dollar, which is substantially more
than if the companies were to be liquidated. The proposal also
provides for the companies to be returned to Maxis' control.

Hovanessian said the company's directors are reasonably
optimistic that a settlement/agreement can be reached and the
proposed deed of company arrangement adopted.  Application will
then be made to ASX to lift its suspension of trading in the
company's securities.

The current management and board have responded aggressively to
the current circumstances to reduce overheads and preserve the
assets of the company. ABT Supplyline Pty Ltd has ceased
operations, while Heartland is on a care and maintenance basis.
Management is focusing on Managed Networks leveraging off its
existing contracts and client base. As noted previously, Managed
Networks continues to trade profitably and to win new business.

Maxis is disappointed with the recent events and the loss of
substantial goodwill and value in the group, Mr. Hovanessian
said. It wishes to express its regret to shareholders and
creditors and looks forward to providing additional good news
over the coming weeks which will hopefully result in a
restoration of confidence in the company.

The board has been most encouraged by the number of supportive
and positive comments it has received from many shareholders and
wishes to assure all concerned that it is doing everything in its
power to return the maximum possible to all creditors whilst
preserving the highest value for shareholders, Mr. Hovanessian
said.

Hovanessian also said he was pleased to welcome Maxis' newest
board member, Mr. Nicholas Swan, whose confidence in the rest of
the board and management, expressed by joining it in these
challenging times, is very much appreciated. He said Swan brings  
many years of corporate, business and financial experience to
Maxis, which will help steer the group out of its current
difficulties.


SOUTHERN EQUITIES: Alan Bond Settles $13 Million Art Case
---------------------------------------------------------
Businessman Alan Bond, his sons Craig and John, and family
accountant Delores Caboche reached an out-of-court settlement on
a $13 million damages claim after three days of evidence in the
Supreme Court, the Advertiser reports.

Southern Equities Corporation Ltd and liquidator Richard England
have been trying to recover 13 paintings and a sculpture which
were allegedly sold by Bond and his sons in 1989.  The
investigation on the 1989 deal, which England said had him and
his legal team chasing money trails through London, Texas and
Lichtenstein and the tax havens of Jersey and the Bahamas, ensued
in a five-year legal battle for Southern Equities, formerly Bond
Corporation.

An abrupt adjournment on Tuesday last week allowed the
negotiations to continue between SECL and Bond.  England told the
Advertiser he was "very happy" with the result.  "There are not
too many pieces of litigation which result in a full recovery for
those bringing the action and this was a full recovery," he said.

"Unfortunately I can't tell you the amount. I'd like to, but the
terms of settlement are confidential. The result is full
compensation for the loss that Southern Equities has sustained as
a result of the removal of the artworks."  England added, "While
he has made no admissions, this has cost him a great deal of
money."

Both parties informed Justice Bruce Lander on March 22 that they
had settled.  England disclosed that the legal efforts to recover
the money paid to the defendants for the paintings, which
included John Webber's 1782 portrait of Captain Cook, cost about
S3 million, the Advertiser said.  The Webber painting was sold
for $5.3 million to the National Portrait Gallery.  The case also
involved a portrait of Matthew Flinders now hanging in the Art
Gallery of SA.


TENNYSON NETWORKS: ASX Halts Trading
------------------------------------
The Australian Stock Exchange on March 19, 2001 announced that
the securities of Tennyson Networks Limited will be placed in
pre-open pending the release of an announcement by the company.

The press release said that the securities were to remain in
pre-open until the earlier of the commencement of normal trading
on Wednesday, March 21, 2001 or when the announcement is released
to the market, unless ASX decided otherwise.


TENNYSON NETWORKS: Requests Suspension from Quotation
-----------------------------------------------------
An announcement dated March 21, 2001 on the Australian Stock
Exchange said that the securities of Tennyson Networks Limited
will be suspended from quotation immediately.

Tennyson had requested that trading in the ordinary shares of the
company be suspended from quotation. Tennyson ordinary shares are
currently the subject of a trading halt granted by the ASX at the
request of Tennyson.

Tennyson said it is not aware of any reason why its ordinary
shares should not be suspended.


TENNYSON NETWORKS: States Reasons for Suspension Request
--------------------------------------------------------
In a letter to the Australian Stock Exchange dated March 21,
2001, Tennyson Networks Limited chairman R. W. Woss said Tennyson
had requested the ASX to suspend trading in its shares pending
completion of a review and reorganisation of its existing
operations.

The review focuses on cost-cutting measures and a re-evaluation
of its Australian and overseas strategies. Tennyson's board is
also actively pursuing negotiations for an equity capital raising
which may involve a change in control of the company.

It is expected that clarification of these issues will be
achieved in the short term.

The board announced in its December 2000 half yearly report that
the company required further capital to continue the development
of its business. Since then a significant downturn in trading
conditions and demand has affected the telecommunications sector
worldwide. The continual decline of the Australian dollar has
also increased the company's offshore expenditure commitments,
and necessitated urgent action to reduce costs and improve
efficiencies during these difficult trading conditions.

Accordingly, the board has begun a major review and
reorganization of its activities. To this end, Mr. Brian Gatfield
has been engaged to assist Tennyson's Board and senior management
with a number of expense reduction measures, coupled with a re-
evaluation of its Australian and overseas strategies. Mr.
Gatfield, a founding director of the GRW Group, has wide
experience in company restructuring, and holds a number of public
company directorships. Mr. David Smorgon has tendered his
resignation as a Director of Tennyson Networks Limited.
Smorgon has advised the chairman that he intends to remain a
substantial investor in Tennyson, and continues to support the
company and its operations.

As Tennyson is in a development phase, whereby it is presently
cash flow negative, the Board advises it is in negotiation with a
number of overseas and Australian parties in an endeavour to
raise capital for the company, which is necessary for its ongoing
trading activities. If these negotiations are successfully
concluded, it is possible that they may result in a change of
control of the company.  This however is not a prerequisite for
the proposed capital raising.

While there is some uncertainty as to the outcome of both the
organisational review and the completion of capital raising
negotiations referred to above, the board believes it is in the
interests of all shareholders to seek a suspension from trading
in the company's shares on the ASX, until this situation is
clarified.


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


KMK COMPANY: Three Creditors File Bankruptcy Suit
-------------------------------------------------
Major creditors Huarong Asset Management Co, Cinda Asset
Management Co. and Industrial and Commercial Bank of China
jointly filed a bankruptcy petition before the Higher People's
Court of Hubei province against Shenzhen-listed welding machinery
maker KMK Co. (Q.KMC), Chinese news agency Xinhua said Thursday.  

Huarong, which is run by the state, is claiming CNY213 million
yuan ($1=CNY8.28) from KMK, including CNY105 million that KMK
guaranteed for one of its major stockholders, Monkey King Group.  
Monkey King has voluntarily filed for bankruptcy proceedings.  
Based on the petition, KMK owes Cinda CNY35 million and ICBC
CNY108 million.

Monkey King reportedly owes KMK around CNY600 million in loans.  
KMK has also guaranteed CNY400 million in loans which Monkey King
is defaulting on.


MONKEY KING: Delisting Possible
-------------------------------
Monkey King Group's Shenzen-listed subsidiary ST Monkey King Co.,
Ltd. could become the first company in China's history to be
delisted from the stock market, chinadaily.com.cn said on March
23, 2001.  The company is based in Central China's Hubei
province.

The online newspaper said major creditors China Huarong Asset
Management Corporation (AMC), China Cinda AMC, and The Industrial
and Commercial Bank of China (ICBC) submitted an application to
the Hubei High People's Court Thursday last week to have the
company wound up.

The firm's financial reports show that by the end of June last
year its total assets stood at 870 million yuan (US$105 million),
and debts stood at 540 million yuan (US$65 million). Huarong is
owed 108 million yuan (US$13 million), the Daily said.

An unidentified Huarong official told the Daily that there was
little chance of restructuring Monkey King.  "We have neither
considered such a possibility, nor negotiated on the issue," he
said.  The official reportedly hinted they will compromise only
after the company pays back debts and fulfills obligations, but
said that so far there is no sign this is going to happen.

Huarong, Cinda, ICBC, and China Great Wall AMC are also major
creditors of Monkey King Co Ltd's parent company, the Monkey King
Group, which is already being wound up because of bankruptcy,
according to the Yichang Intermediate People's Court, Hubei
Province. Huarong owns 622 million yuan (US$72.9 million) of
creditors' rights in the group, the Daily said.

Huarong reportedly accused the group of having maliciously
transferred its assets to other companies without informing
creditors.

According to the Huarong official, Monkey King Group's 3.4
billion yuan (US$409 million) of assets at the end of 1999 had
shrunk drastically to just 370 million yuan (US$44.6 million) by
the time it announced bankruptcy in February this year.  The
group's debts stood at 2.4 billion yuan (US$288.7 million) by the
time of bankruptcy, barely down from the 1999 level of 2.8
billion yuan (US$333.7 million), the Daily said.


WAI KEE: Requests Trading Suspension; Chairman, VC Arrested
-----------------------------------------------------------
Wai Kee Holdings Limited announced last week that six persons,
including the company's chairman and vice-chairman, were
arrested.  Trading in the securities of the company was suspended
at the request of the company at 10:00 a.m. on Thursday, March
22, 2001.  

In a press release dated March 21, the Independent Commission
Against Corruption said it had arrested on Monday, March 19, six
persons, including the chairman and a vice-chairman of a public
listed company, for their alleged involvement in a housing
project fee inflation scam suspected to be facilitated by graft.

The other four arrested were a former executive director, a
serving executive director and a financial controller of the
listed company, and a project manager of a subsidiary of the
company.

The ICAC said it was suspected that the arrestees had obtained
the assistance of some staff of an architect firm to certify
inflated project fees in relation to a government's Private
Sector Participation Scheme project.  The Architect's
Certificates were subsequently submitted to the banks for release
of interim payments for the inflated project fees.

The project involves the construction of seven blocks of
residential buildings and other amenities in Hung Hom.

Both the project developer and the main contractor were
subsidiaries of the listed company.  The developer financed the
project through a syndicated loan from a group of banks.

ICAC said its investigations revealed that the top management of
the listed company had instructed the main contractor to inflate
the value of the works completed for the project to get extra
cash from the bank, thus increasing the company's cash flow.

The main contractor allegedly instructed the project manager to
exaggerate the value of works completed in three of their monthly
Payment Valuation Reports last year, inflating the amount of work
value by $31.5 million in total.  ICAC said the main contractor
had remitted the extra amount of cash obtained to the listed
company.

The six arrestees have been released on ICAC bail.  The enquiries
are continuing.

Wai Kee has denied knowing of any circumstances that support the
allegations, and does not expect that the arrests will have any
immediate impact on the day-to-day operations of the company or
its subsidiaries.  The company said it is cooperating fully with
the investigation and will make further announcements as and when
appropriate.  It strongly denied any wrongdoing and is confident
that further inquiry will fully exonerate them.  It said it
retains full confidence in its directors and staff, and
emphasizes that progress on the Hung Hom project continues as
planned.

Wai Kee emphasized that the inquiry concerned the rate at which
its subsidiary has drawn upon its agreed syndicated bank loan.  
It said that it is not about inflation in the total cost of the
Hung Hom project or in the size of the loan.  The company said it
will launch its own rigorous independent inquiry to ensure that
the facts become clear.


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


APAC INTI: IBRA to Own 51% Stake
--------------------------------
The Indonesian Bank Restructuring Agency (IBRA) will hold around
51% stake in PT Apac Inti Corpora Tbk (APAC) after the
restructuring of the textile company is completed, said the
company's finance director, Anas Bahfen.

Anas said that after the restructuring, 51% of APAC's shares
would be owned by the IBRA, while the company's ownership would
remain 46% from 95%. Meanwhile the rest 3% would be owned by
cooperative. He further added that the restructuring was in final
phase, with debt to equity swap scheme. (E-Samuel, March 23,
2001)

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


TOKYO MUTUAL: Filed for Bankruptcy Court Protection
---------------------------------------------------
Tokyo Mutual Life Insurance Co announced it had filed for court
protection from creditors.  The company said its liabilities
exceeded assets by 34.1 billion yen, a March 23, 2001 report by
Reuters said.  Tokyo Mutual is Japan's 16th largest life insurer
in terms of assets.

Outgoing Tokyo Life president Kenichi Nakamura told a news
conference, "Unrealised losses on stock holdings rose and made us
think it would be difficult to reconcile a negative spread in the
future," Reuters said.  The company's unrealized losses on
securities were at 94.5 billion yen by September 2000.

Tokyo Life filed for court protection under a special
rehabilitation law for financial institutions with liabilities of
980.2 billion yen as of the end of September.  The company
revealed that policy cancellations, deteriorated assets and Daiwa
Bank's withdrawal of financial support were the reasons behind
its decision, Reuters said.  Financial Services Minister Hakuo
Yanagisawa reportedly said he was not sure whether public funds
were necessary to help rehabilitate Tokyo Life.

Administrator Masaharu Ohashi said he hoped it would not need to
tap the Life Insurance Policyholders Protection Corp.  This is a
960-billion-yen safety net to protect policyholders and is funded
jointly by insurance industry and from public funds, Reuters
said.


TOKYO MUTUAL: Daiwa Bank Writes Off Exposure, Expects Loss
----------------------------------------------------------
Daiwa Bank Ltd said it will write down all of its financial
exposure to Tokyo Mutual Life Insurance Co, AFX Asia said in a
report dated March 23, 2001.  Daiwa said it will write off about
32 billion yen in the year to March 2001.  Tokyo Mutual had filed
for bankruptcy court protection earlier.

Daiwa disclosed that it will increase the annual credit cost to
about 140 billion yen in the year to March, up from the previous
estimate of 82 billion.  This includes the Tokyo Mutual write
off.  Daiwa did not reveal the names of other debtors for which
it will expand the write-offs, AFX said.

Daiwa said it now expects a net loss of 18 billion yen and a
pretax loss of 3.5 billion yen, according to the AFX report.  The
previous estimate was a 28 billion net profit and a 58 billion
pretax profit.


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


HYUNDAI GROUP: HEC Get Chung's 15% Stake
----------------------------------------
The Hyundai Group announced on March 22, 2001 that it will donate
group founder Chung Ju-yung's 15.77 % stake in Hyundai
Engineering and Construction Co. back to HEC in compliance with
the late Chung's will.  The stake is equivalent to 50 million
shares.

The donation makes Hyundai Group chairman Chung Mong-hun the
largest shareholder in Hyundai Construction.  The chairman is the
founder's fifth son.  


HYUNDAI HEAVY: Summary of 27th General Shareholders' Meeting
------------------------------------------------------------
Hyundai Heavy Industries Co., Ltd.'s 27th general shareholder's
meeting was held at Hanmaun center in Ulsan on March 16, 2000. It
lasted 2 1/2 hours.  The following summary was posted on HHI's
website:

"HHI set up a big screen to present business report regarding
financial statement and management strategy.  

"HHI made a full explanation on even several controversial topics
with a responsibility. This meeting was the opportunity to show
HHI's will toward transparent and shareholder-centered
management.   

"Total 581 people were present including 3 NGO people and 10
labor union people, which constituted 42.5% of common stock with
a voting right (24,704,306 stocks).  During the meeting, every
agendas were unanimously agreed  with a applause.  It could be
performed by a thorough discussion after providing  shareholders
with the opportunity of speaking.  
   
  Agreed agendas were as the following;
    1. The 27th financial statement approval
    2. Appointment of directors
    3. Maximum limitation of compensation of directors
    4. Amendment of the articles of incorporation.         

"Concerning the second agenda of the meeting, Kil-Sun Choi,
former Advisor of Hyundai Mipo Dockyard and Keh-Sik Min,
President & Chief Operating Officer of R&D Centre and IT Division
were appointed as new Presidents of HHI.

"This decision aims to become the world best leading company in
the heavy industry through extremely enhanced sales and R&D
performance by two outstanding leaders of the corporate in place
of former President Choong-Hooy Cho whose term of office was
expired.

"Kil-Sun Choi as CEO will be responsible for the general
management of the company and Dr. Keh-Sik Min as CTO will perform
his accountabilities of the R&D general management and the
chairman of directors.

"Regarding board of directors, among four seated directors,
Myung-Sun Sin, executive vice president, are newly elected
director, and Byung-Ki Park, senior executive vice president,
remain in the board.  Two former board of directors, Young-Ki Lee
and Chang-Yoon Ha were replaced.  And also, Jin-Won Park, a legal
advisor, and Min-Hwa Lee, president of Medison Co, Ltd., stepped
out from the board, and Sin-Ok Kang, the senior legal advisor of
Kang Sin-Ok Law Firm was elected a new outside director.

"The ratio of inside and outside directors selected has been put
to 50% to 50% as last year, which shows HHI's effort for
transparent and shareholder-centered management."




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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