/raid1/www/Hosts/bankrupt/TCRAP_Public/000808.MBX      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

             Tuesday, August 8, 2000, Vol. 3, No. 153

                                   Headlines


* A U S T R A L I A *

ARTHUR YATES & CO LTD: Expects annual loss
AVONWOOD HOMES: Final blow as liquidator sells assets
LIFESTYLE PROPERTY INVEST.: 47 subsids. to be liquidated
LOWER HUTT HOTEL: Court action poses threat to hotel sale
MAJOR ENGINEERING GROUP: Landmark worker entitlement ruling
MUSEUM OF CONTEMPORARY ART: Lord mayor kicks in $30M more
SPIKE CYBERWORKS: Names 5 new execs to reassure investors


* C H I N A  &  H O N G  K O N G *

CHINA EDUC. SCIENCE TECH.TRUST: Central bank closes it
CHINA HUAYANG FINAN.LEASING CO.: Central bank closes it
CHINA HUAKANG TRUST & INVEST.CO.: Central bank closes it
CHINESE BOOKS CYBERSTORE LTD: S'holder with rescue plan
GUANDONG INT'L TRUST: Court orders shares auctioned
KAILAY ENGINEERING CO.(HK)LTD: Facing winding up petition
KAM FAI ELECTROPLATING FTY.LTD: Facing winding up petition
LOONG TAI ENTERPRISE (HK)LTD: Facing winding up petition
TUNTEX GROUP: Creditors give two-year loan extension


* I N D O N E S I A *

PT MUSTIKA NIAGA NUSANTARA: Suspension of payment okayed


* J A P A N *

SOGO CORP.: Tie-up agreement with Seibu in talks


* K O R E A *

CHEJU BANK: FSS to require rehab plan by Sept.
CHO HUNG BANK: FSS to require rehab plan by Sept.
HANVIT BANK: FSS to require rehab plan by Sept.
HYUNDAI GROUP: Self-rescue package rejected
HYUNDAI GROUP: Gov't turns the screws
HYUNDAI GROUP: Given to Aug. 19 to resubmit rehab plan
KOREA EXCHANGE BANK: FSS to require rehab plan by Sept.
KWANGJU BANK: FSS to require rehab plan by Sept.
MIJU CORP: Creditors agree to reschedule debt
PEACE BANK: FSS to require rehab plan by Sept.
SEOUL BANK: FSS to require rehab plan by Sept.
YEUNGNAM MERCHANT BANKING: Told to write down cap value


* M A L A Y S I A *

LION GROUP: Seeks Gov't arbitration to resolve debt
PANTAI HOLDINGS: KLSE reprimands
PCMS SDN: Elects to wind up
PPES WATER SDN: Elects to wind up
TIME ENGINEERING: KLSE reprimands
UTAMA CAPITAL SDN: Elects to wind up
UTAMA NOMINEES (ASING): Elects to wind up
UTAMA NOMINEES (TEMPATAN): Elects to wind up
UTAMA SECURTIES SDN: Elects to wind up


* P H I L I P P I N E S *

CAPITOL WIRELESS INC: Creditors want guarantee call-in
GUILD SECURITIES: PSE wants Reynolds trade explanation
JAKA SECURITIES: PSE wants Reynolds trade explanation
MAGNUM INT'L SECURS.: PSE wants Reynolds trade explanation
NATIONAL STEEL CORP.: Swiss-led consortium eyeing it
UPCC SECURITIES: PSE wants Reynolds trade explanation


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

ARTHUR YATES & CO LTD: Expects annual loss
------------------------------------------
Arthur Yates and Co Ltd has revised down its expected
results for the year to June 30, and now expects a net
loss.

The company said yesterday it also expected earnings before
interest, tax and abnormals for the year to June 30, to be
a loss of about $400,000.  The company said abnormals
before tax are now expected to be approximately $4.9
million, related to group restructuring and future income
tax benefits restatement.

Interest for the year is also expected to stay at about $3
million.  Exact figures are being finalised by auditors.
(Border Mail Online  05-Aug-2000)

AVONWOOD HOMES: Final blow as liquidator sells assets
-----------------------------------------------------
The final blow for Melbourne's collapsed Avonwood Homes
came last week as its provisional liquidator moved to sell
the company assets.

Arrangements have been made to sell Avonwood's display
homes, along with its land holdings, the copyright of its
drawings and designs and other assets such as cars and its
Queensland properties. Mr Malcolm Howell, a spokesman for
provisional liquidator Mr Paul Pattison, said it was now
unlikely that Avonwood could stave off final liquidation.

He added that the company's 1,300 creditors were likely to
receive less than 50› in every dollar owed. The Supreme
Court of Victoria will make a final decision in October on
whether to liquidate the company. The Victorian-based house
builder owes creditors more than $13 million but, even with
the sale of assets, is likely to come up with only $8
million.

Meanwhile, Avonwood's home construction contracts are
slowly being completed, with Avonwood allowed to return to
217 building sites. NSW-based Clarendon Homes is completing
400 contracts for the company, while customers who paid
deposits but did not enter into final contracts are
unlikely to have all their money returned.

Mr Howell said yesterday that Avonwood's financial
situation might have been improved if insurance agency,
Dexta, had allowed the company to return to its building
sites, rather than appointing Clarendon to do the job.
But Dexta has long defended its decision.

In June, the managing director of Dexta Corp, Mr Ashraf
Kamha, said Dexta's job was to protect the insured home
buyers, not Avonwood's owners or creditors.  Almost 1,100
building contracts were left uncompleted after Avonwood was
placed in the hands of the provisional liquidator earlier
this year.

Avonwood is one of a growing number of casualties of a
downturn in the Australian housing market. In the lower
Hunter region of NSW, administrators were last month
appointed to two building companies which between them owe
$850,000.

Liquidators have since been appointed to Adamstown company
Campbell Building Pty Ltd, which owes $250,000 to about 60
creditors. It left six uncompleted projects. Brampton Homes
Pty Ltd, from Port Stephens, has left 10 uncompleted houses
and is understood to owe creditors more than $600,000.
Ferrier Hodgson took control of the company's operations
last month.

One of Australia's biggest providers of building stone,
Deemah Marble & Granite, has also closed its doors, putting
100 employees out of work.  (Australian Financial Review
07-Aug-2000)

LIFESTYLE PROPERTY INVEST.: 47 subsids. to be liquidated
--------------------------------------------------------
Justice Marilyn Warren reinforced the Australian Securities
and Investments Commission's decision ordering the
liquidation of Lifestyle Property Investment's forty-seven
subsidiaries last August 4.

Six other subsidiaries belonging to the Lifestyle Group had
already applied for liquidation last July. (Australian
Financial Review  05-Aug-2000)

LOWER HUTT HOTEL: Court action poses threat to hotel sale
---------------------------------------------------------
A High Court case is threatening to jeopardise the sale
prospects of a failed Lower Hutt hotel development - and
with it the chance of creditor reimbursements.

Work on the hotel, within Lower Hutt's former police
station buildings on Knight's Rd, halted late last year
because bills weren't being paid. The developer, High Win
(NZ) Ltd, was put into liquidation and more than $3 million
is claimed by creditors.

Liquidator David Petterson said one company, Golden Fields
Ltd, claims to be a major creditor, though he disputes this
and the matter is before the court. It was adjourned to
August 14 during a chambers hearing on Wednesday. Mr
Petterson told of frustration among three prospective hotel
buyers over the chance of further delays through
litigation.

One of the three was threatening to pull out of
negotiations altogether should Golden Fields win its case,
fearing the group would complicate matters when time came
to redistributing the owed money.

"They want a clean operation. They don't want any residual
claims," Mr Petterson said.

Golden Fields took court action after the liquidator
rejected the group's proof of debt during a creditors
meeting in May.  Mr Petterson said the Knight's Rd property
was worth between $500,000 and $3 million. It could go back
on the market should buyer interest fade. He has not named
the potential purchasers.  (The Evening Post 03-Aug-2000)

MAJOR ENGINEERING GROUP: Landmark worker entitlement ruling
-----------------------------------------------------------
A court in Victoria ruled in favour of nine workers denied
entitlements after their employer went into receivership.

The Manufacturing Workers' Union (AMWU) sued Major
Engineering Group after the receiver attempted to deny the
workers entitlements citing Corporations Law. The AMWU and
Major Engineering had signed a new consent award five days
before receivers were appointed.

On 3 August 2000 the Supreme Court ruled that Australian
Industrial Relations Commission (AIRC) proceedings against
companies could continue after receivers had been
appointed.  The Supreme Court ruled that the AIRC was
not technically a court so the action could proceed.
Solicitor Anne Gooley said the decision opened the way for
unfair dismissal claims against companies under
administration.  (The Age  05-Aug-2000)

MUSEUM OF CONTEMPORARY ART: Lord mayor kicks in $30M more
---------------------------------------------------------
Sydney's Lord Mayor, Councillor Frank Sartor, is understood
to have added a $30 million sweetener to his offer to
rescue the troubled Museum of Contemporary Art.

The last-minute proposal, which takes the rescue package to
$60 million, was being negotiated late yesterday between Cr
Sartor, the MCA and the University of Sydney, the museum's
parent body. It is believed to involve guaranteed funding
of at least $3 million a year for the next 10 years.

This would include $1.5 million a year for new exhibitions,
relocation of the museum during refurbishment, and fewer
council-appointed members of the museum's board. Such terms
are believed to be acceptable to the MCA and the
university's senate, which is meeting today to discuss the
idea.

The university was believed to be worried that Cr Sartor's
earlier plan left the museum with less funding than it has
now, leaving it unable to expand. The new offer could
double the cost of the council's involvement in the museum.
Under the previous deal, the council was to contribute $30
million to the building's redevelopment - to add an extra
storey to the building on West Circular Quay and rent it to
a commercial tenant.

The university would put in $5.6 million, but the State
Government refused to contribute - leaving a shortfall of
$14.5 million for Cr Sartor's plan. The future of the MCA
has been under a cloud since last April after the sudden
resignation of its director and reports of financial
problems.

It was then that Cr Sartor emerged as a likely suitor.
Under the proposal, the university is being asked to
forfeit $5 million of a $5.6 million loan to the museum.
But late last week it appeared the university would
postpone a decision because of fears that the deal did not
meet the terms of the bequest which funded the
establishment of the museum in 1991.

Under the new proposal, Cr Sartor is also understood to be
willing to pay for the relocation of the museum during
refurbishment instead of closing it for 18 months as had
been proposed.  He is also believed to have backed away
from a previous demand for full control over the MCA board.
The terms are understood to be attractive to the museum and
the university.

However, negotiations were continuing late last night.
The university is under pressure to make a decision today
following the threat by the Premier, Mr Carr, to withdraw
all State financial support and increase the peppercorn
rent the MCA pays for the former Maritime Services Board
building.  ydney University's Vice-Chancellor, Professor
Gavin Brown, confirmed last night that there had been
progress in negotiations.

"But it would be quite improper for me to comment before
the senate meeting," he said.

If the university approves Cr Sartor's plan, the
refurbishment of the building also requires approval from
heritage authorities. Neither the MCA nor the Lord Mayor's
office could be contacted for comment last night. (Sydney
Morning Herald  07-Aug-2000)

SPIKE CYBERWORKS: Names 5 new execs to reassure investors
---------------------------------------------------------
Troubled Web-site design and content company Spike
Cyberworks yesterday named five new high-ranking
executives, including a CEO of its Australian operation.

John Craven, a veteran IT executive who resigned this week
as a director of IT&e Ltd, will take over the top spot in
the Sydney office.  Mr Craven replaces Brian Mann, who was
chief operating officer of Australian operations. Mr Mann
resigned and returned to the US.

Spike CyberWorks and Spike Networks, which owns 70 per cent
of the Web design firm, have been racked by turmoil. Former
CEO Chris O'Hanlon was forced out. Three other top-level
executives left the company in the past month.

"I hope investors will be reassured" by these moves,
executive chairman John McGuigan told The Australian. Mr
McGuigan stepped in to run the company in the wake of the
exodus.  "What we are demonstrating is the building an
extraordinary executive team."

Also named for Spike's Australian team were Austin Wildmore
as head of production, Anand Vasan in charge of new
business and client management, John MacInnis (formerly of
Rare Medium) to lead project management, and James Mitchell
as CFO.

In its five years of operation, Spike CyberWorks has
created more than 600 internet businesses on four
continents and counts among its past or present clients
Colgate Palmolive, Citibank, Fuji Xerox and NEC Australia.
Mr McGuigan, a lawyer who moved into venture capital, made
an investment in Spike. He had not envisioned taking such
an active role in the company and says he is trying to look
on the bright of the turmoil surrounding the firm.

"It certainly hasn't been boring," he said. Mr McGuigan
said he was still looking to hire a CEO for the entire
Spike CyberWorks operation, which now spread across Asia
and Australia.  "What my experience has taught me is that
we are an exciting space, especially in Asia."

Mr McGuigan said that because of the great demand coming
from Asia, he expected CyberWorks revenue, which had been
55 per cent from Australia and 45 per cent from Asia in the
past 12 months, to reverse itself in the next year. (Border
Mail Online  05-Aug-2000)


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

CHINA EDUC. SCIENCE TECH.TRUST: Central bank closes it
CHINA HUAYANG FINAN.LEASING CO.: Central bank closes it
CHINA HUAKANG TRUST & INVEST.CO.: Central bank closes it
--------------------------------------------------------
China's central bank shut down another of the country's
weak investment trusts on Monday, amid reports it would
soon unveil plans to shut most trust firms and ask their
lenders to take losses on credits.

The People's Bank of China said it would close China
Education Science Technology Trust & Investment Co. because
of financial losses, marking the third closure of a
financial company in a week. The central bank last week
closed down China Huayang Financial Leasing Co. and China
Huakang Trust & Investment Co. after they were unable to
repay debts.

The announcement came as a Hong Kong newspaper, Apple
Daily, said the country's 200-odd investment trust
companies would be reduced to 40 or 50 under a
restructuring plan to be unveiled this month. Creditors of
the trust companies, which were once the main conduits for
foreign investment into the Chinese economy, will have to
accept losses of about 30 percent on their loans, the Apple
Daily reported, without citing the source of its
information.

As many as a dozen trust firms in China have missed
payments or defaulted on international bonds after the
collapse of Guangdong International Trust & Investment
Corp. in October 1998 exposed the shaky financial state of
the country's investment companies. (International Herald
Tribune, Bloomberg  08-Aug-2000)

CHINESE BOOKS CYBERSTORE LTD: S'holder with rescue plan
-------------------------------------------------------
An Internet Chinese bookdealer that failed last week could
be brought back online with a rescue plan announced Monday
by its biggest shareholder.

Chinese Books Cyberstore Ltd. was placed in voluntary
liquidation after it ran out of money and shareholders
couldn't agree on a new funding plan. But majority
shareholder ITVentures Ltd. said Monday it wants to pay all
outstanding debts in cash and put the bookseller back in
business.  The debts stood at 37.8 million Hong Kong
dollars ($4.8 million) by the end of July.

ITVentures chairman Gabriel Yu said he can come up with
funds to pay off the creditors, but he would not say how
much his company would be prepared to pay to buy back
Chinese Books Cyberstore and relaunch it.

"It's a secret. We can't give other competitors a gauge on
how much to put up on offer. It is up to the liquidator to
take the best option," Yu told a news conference.

Yu declined to say how soon he thinks the company often
billed as a Chinese version of Amazon.com can get back into
business.  Its failure was characterized as one of the most
high-profile collapses of Hong Kong's once-booming Internet
sector, where other companies have been reporting losses
and laying off workers.  Chinese Books Cyberstore had
recently been contemplating share listings in New York or
Hong Kong before it ran out of money.

"We are here to reiterate our commitment to stay as a key
player in this business," Yu said. "More importantly, we
are sending a strong message to assure our business
partners and creditors that we intend to honor our
financial obligations."  (Associated Press 07-Aug-2000)

GUANDONG INT'L TRUST: Court orders shares auctioned
---------------------------------------------------
Pursuant to an order of the Shenzhen Intermediate People's
Court ordering the auction of 60 million Hubei Xingfu
Industry Co. (HXICL) shares belonging to Guandong
International Trust and Investment Corp (GITIC), the
auction was held August 1.

The decision of Judge Cai Xiaoling, bankruptcy division,
ordered HXICL to pay GITIC debts after it filed bankruptcy.
According to Judge Xialing, HITIC should repay GITIC for
US$5 million plus interest. The court has also found out
that HITIC acquired 143,286,930 shares of corporate stock
of HXICL on Dec. 14, 1999, accounting for 45.8 percent of
total shares of HXICL. GITIC applied for sealing up and
disposing of the stocks of HXICL.

HXICL is a public company listed in Shanghai. 60 million
shares auctioned this time accounts for 19.2 percent of its
total stocks and the winner will be the biggest shareholder
of the company. The court entrusted Panlong Auction Co.
with conducting the auction. You Bo, general manager of
Panlong, served as auctioneer. The auction started at 0.60
renminbi (US$0.07) per share. After several rounds of
competition, Mingliu Investment Co. won the bid.

KAILAY ENGINEERING CO.(HK)LTD: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on September 14 on the petition of
Ho Sze Wan, Sung Chi Sang Terry, Lam Chak Yuen Jackson, Lau
Kwok Wai, Rodriguez Ruben G., Lee Yun Kee and Lee Chun Kong
for the winding up of Kailay Engineering Co. (Hong Kong)
Limited. A notice of legal appearance must be filed on or
before September 13.

KAM FAI ELECTROPLATING FTY.LTD: Facing winding up petition
----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 16 on the petition of Lam
Sum Po for the winding up of Kam Fai Electroplating Factory
Limited. A notice of legal appearance must be filed on or
before August 15.

LOONG TAI ENTERPRISE (HK)LTD: Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on September 14 on the petition of
Nanyang Commercial Bank, Limited for the winding up of
Loong Tai Enterprise (Hong Kong) Limited.  A notice of
legal appearance must be filed on or before September 13.

TUNTEX GROUP: Creditors give two-year loan extension
----------------------------------------------------
Creditor banks have granted a two-year extension to the
Tuntex Group for a loan with a discounted interest of 6
percent.  Japanese Minister of Finance Shea Jia-dong and
central bank governor Perng Fainan met with creditor bank
representatives before coming up with the decision.


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

PT MUSTIKA NIAGA NUSANTARA: Suspension of payment okayed
--------------------------------------------------------
The Jakarta commercial court has approved Ongko Group unit
PT Mustika Niaga Nusantara's request for a 45-day
suspension of debt payment, presiding judge Joedijono said.

"We think it is fair enough to give 45 days suspension of
payment to allow further negotiations between the company
and its creditors," Joedijono said.

Mustika Niaga is one of four Ongko companies currently
under bankruptcy proceedings due to its failure to pay debt
to the Indonesian Bank Restructuring Agency (IBRA).
Joedijono said Mustika does not agree with IBRA on the
amount of debt owed to the agency.  IBRA has claimed that
Mustika owed debts of 82 bln rupiah to the agency while the
Ongko unit said it owes only 31.5 bln rupiah.  (AFX News
Limited  07-Aug-2000)


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

SOGO CORP.: Tie-up agreement with Seibu in talks
------------------------------------------------
The financially embattled Sogo Co. department store chain
is negotiating a comprehensive tie-up agreement
with Seibu Department Stores Ltd. that would involve the
sharing of distribution centers, supplying of common
products and the exchange of personnel.

Sogo is in rehabilitation after filing for court
protection from creditors under a new law that allows firms
facing collapse to accelerate their rehabilitation plans.
Sogo hopes to expedite the rehabilitation process by
strengthening its ties with Seibu.

Sogo recently appointed Shigeaki Wada, former chairman of
Seibu Department Stores, as a special adviser. That move
possibly could pave the way to Wada's appointment as Sogo
president. Additionally, Seibu is mulling the possible
purchase of a stake in Sogo, which could eventually place
Sogo under the umbrella of Seibu Department Stores.

The Mizuho Financial Group, which will be created in
September by the integration of Industrial Bank of Japan
(IBJ), Dai-Ichi Kangyo Bank and Fuji Bank, is expected to
give full support to the Sogo-Seibu tie-up. IBJ is a key
financier for Sogo, while Dai-Ichi Kangyo Bank is a main
financial institution for Seibu.

According to sources, Wada revealed the plan to forge a
tie-up between Sogo and Seibu when he visited financial
institutions doing business with Sogo to explain why he had
been appointed special adviser to Sogo and the prospects
for that company's rehabilitation.

After assuming the Sogo post, Wada held talks with Yukio
Horiuchi, president of Seibu Department Stores , to ask him
to dispatch executives to Sogo and to discuss the contents
of a proposed tie-up deal. Almost without exception, Sogo
and Seibu do not currently compete in the same commercial
districts. A tie-up would allow them to complement each
other in terms of expanding the commercial districts they
cover.

If the tie-up goes ahead and Sogo is able to rehabilitate
itself with sales from its stores in Yokohama, Kobe,
Hiroshima and Omiya, Saitama Prefecture-main profit-earners
for Sogo--the benefits to Seibu will be significant, the
sources said. Seibu is considering jointly buying clothing
and other items with Sogo and allowing Sogo to sell Seibu-
developed products at its stores.

The two department store chains are also studying the
possibility of establishing common distribution centers and
jointly procuring materials for their operations. Seibu,
however, has a fragile financial base. The department store
chain has 446.1 billion yen in interest-hearing debts and
needs a huge amount of money to help its Saison retail
group liquidate Seiyo Corp., a financially troubled real
estate developer.

Seibu, therefore, is not expected to buy Sogo, which
also has huge debts. It is more likely to buy a stake in
Sogo when the latter issues new shares after reducing its
capital for rehabilitation. (The Yomiuri Shimbun/Daily
Yomiuri  06-Aug-2000)


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K O R E A
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CHEJU BANK: FSS to require rehab plan by Sept.
CHO HUNG BANK: FSS to require rehab plan by Sept.
HANVIT BANK: FSS to require rehab plan by Sept.
KOREA EXCHANGE BANK: FSS to require rehab plan by Sept.
KWANGJU BANK: FSS to require rehab plan by Sept.
PEACE BANK: FSS to require rehab plan by Sept.
SEOUL BANK: FSS to require rehab plan by Sept.
-------------------------------------------------------
Around seven local commercial banks without sufficient
capital will have to submit restructuring plans by
September to the Financial Supervisory Service (FSS), the
financial-sector regulator said yesterday.

The plans will have to include how they will recapitalize,
attract foreign investments, enhance profitability, and
streamline their business as well as whether they will
merge or join a holding company with others.  The FSS said
yesterday that this week it will examine reports by
domestic commercial banks on their capital ratio as of the
end of June under standards set by the Bank for
International Settlement (BIS).

According to the watchdog agency, six banks reported their
BIS capital ratios fell below 8 percent after reflecting
all of their potential losses from nonperforming loans.
The six are Hanvit Bank, Korea Exchange Bank, Seoul Bank,
Peace Bank, Kwangju Bank and Cheju Bank.

Cho Hung Bank, despite its BIS ratio over 8 percent, is
expected to be included because all banks that received
public-fund injections and that fail to meet the
government-set BIS ratio of 8 percent are required to draw
up self-rescue plans, But in the case of Seoul Bank, it is
still unclear whether the troubled bank will have to submit
its plans because it is currently being advised by Deutsche
Bank.

The FSS will form an independent evaluation committee to
assess the banks' plans by mid-October. After evaluating
the reports, the agency will determine the fate of banks
deemed unable to survive as an independent entity. (Korea
Herald  07-Aug-2000)

HYUNDAI GROUP: Self-rescue package rejected
-------------------------------------------
The drawn-out tug-of-war between the government and the
giant Hyundai Group is entering its final stage, with the
embattled conglomerate struggling to come up with a fresh
self-rescue package.

"The issue of the Hyundai Group is directly linked to the
future of our economy," a senior official of the financial
watchdog, Financial Supervisory Commission (FSC)," said
recently.  "If Hyundai fails to sort it out on its own,
[the government] would resolve it even by mobilizing
coercive means," the official, who asked not be named, was
quoted as saying by the Munhwa daily on Saturday.

He made the statement after creditor banks rejected a self-
rescue package presented by Hyundai, saying it failed to
address demands from the creditors and the government.
Hyundai said it planned to present a new package next week,
possibly after the government carries out a cabinet
reshuffle in which most of economic portfolios are expected
to be replaced.

FSC said the package did not contain any plans to sell
assets valuable enough to help ease cash flow problems
faced by the group, and fudged on creditors' demands that
managers responsible for the liquidity crisis be replaced.
Creditors and the government demand that the founder of the
Hyundai Group, Chung Ju-Yung, sell two thirds of his 9.1
percent holdings in Hyundai's auto unit, Hyundai Motor and
his shares of other key units including electronics and
shipping companies.

They are also calling for the construction unit, Hyundai
Engineering and Construction, to sell its shares of other
Hyundai units.  Proceeds from these sales would be used to
ease the construction unit's liquidity crunch.

Hyundai proposed to sell Chung's auto holdings to another
Hyundai unit, a proposal rejected by the creditors.
The government and creditor banks are urging the group to
spin off its key units, including the auto, electronics and
shipbuilding companies, and make them independent as the
group has promised to do.

Hyundai suggested it should spin off its shipbuilding unit,
Hyundai Heavy Industries, by the end of next year, two
years ahead of an original schedule, but the creditors
demanded the spin-off to be done by the end of this year.
If Hyundai rejects these demands, creditors would consider
placing Hyundai Engineering and Construction, and other
Hyundai units linked to the company through debt repayment
guarantees, under court receivership, the FSC official
said.

Hyundai has come under mounting pressure from creditor
banks and the government to carry out drastic corporate
restructuring.  At the centre of the storm is Hyundai
Engineering and Construction, which has been tottering on
the verge of insolvency and threatening to plunge other
units, linked with the company through debt guarantees,
into crisis.

Uncertainties over the Hyundai Group, which has been dogged
by a family feud among Chung's sons, have also been
weighing heavily on the country's money market. (Business
Day  07-Aug-2000)

HYUNDAI GROUP: Gov't turns the screws
-------------------------------------
South Korea's new finance minister Monday turned the screws
on the giant Hyundai group, telling the conglomerate to
fall in line with creditors' demands to restore confidence
in the country's economy.

Finance and Economy Minister Jin Nyum, speaking hours after
his promotion in a cabinet reshuffle, said it was vital the
debt-ridden family-run company put together a new self-
rescue plan.

"I haven't been informed of the specifics, but for the
future of Hyundai, the smooth operation of the national
economy and to ensure local and foreign investor trust, the
conglomerate must give a viable response to creditors'
demands as soon as possible," Jin told reporters.

Hyundai's main creditor, Korea Exchange Bank, also
indicated its impatience with the company, after a previous
Hyundai restructuring proposal was rejected out of hand
last week.

"We are now waiting for Hyundai's reaction to our request
for adequate self-rescue measures, separation of the
Hyundai subsidiaries and restructuring of the management,"
said Lee Yeon-soo, the bank's vice president.

Creditors and the government are demanding that the founder
of the Hyundai Group, 85-year-old Chung Ju-Yung, sell two
thirds of his 9.1 percent holdings in Hyundai's auto unit,
Hyundai Motor Co., and shares in other key units, including
the electronics and shipping companies. They are also
calling for the construction unit, Hyundai Engineering and
Construction Co., to sell its shares in other Hyundai
units.

Proceeds from these sales would be used to ease the
construction unit's cash flow problems.  The government and
creditor banks are also urging the group to fulfil promises
to spin off its key units, including the auto, electronics
and shipbuilding companies.  At the centre of the storm is
Hyundai Engineering and Construction, which has been
tottering on the verge of insolvency and threatening to
plunge other units, linked with the company through debt
guarantees, into crisis.

Hyundai has come under mounting pressure from creditor
banks and the government to carry out drastic corporate
restructuring. Uncertainty over the rescue plan was a major
factor in sending the Korean Stock Exchange's main index
plummeting 4.8 percent on Monday.  But a senior Hyundai
Group official suggested the conglomerate could delay an
announcement of its self-restructuring plan by another
week, according to Yonhap News Agency.

The official said main creditor Korea Exchange Bank had
sent a letter requesting the new plan be presented by
August 19, even though company officials had suggested the
plan would be presented on Wednesday.

"Since creditors' demands are broad, we plan to take time
to prepare a feasible scheme to secure substantial
liquidity," he said.

The Financial Supervisory Commission (FSC) has warned
creditors would consider placing Hyundai Engineering and
Construction, and other Hyundai units linked to the company
through debt repayment guarantees, under court
receivership if the rescue plan is considered inadequate.

Uncertainties over the Hyundai Group have been exacerbated
by a family feud among Chung's sons, while the group's
ailing founder was admitted to hospital on Monday for the
third time in a month.  (Agence France Presse  07-Aug-2000)

HYUNDAI GROUP: Given to Aug. 19 to resubmit rehab plan
------------------------------------------------------
The Hyundai Group said it has been told by main creditor
Korea Exchange Bank to submit restructuring plans,
including self-rescue programmes and spin-offs of
its automobile units, to creditors by Aug 19.

"The KEB called us and said that it will send documents
requiring us to submit our self-rescue programmes by Aug
19," a Hyundai Group spokesman said.  "Accordingly, we will
finalise and disclose the self-rescue programmes by then."
(AFX News Limited  07-Aug-2000)

MIJU CORP: Creditors agree to reschedule debt
---------------------------------------------
Creditors of Miju Corp., a company run by Park Sang-hee,
chairman of the Korea Federation of Small Business, have
agreed to offer another debt relief package to the company
which has already been given one under a debt workout
program.

The 16 creditor institutions met Saturday and decided to
reschedule the company's debt repayment and select a new
auditing firm that will conduct due diligence on it.
The auditing firm is supposed to complete due diligence as
early as possible so that the creditors can reschedule
debts based on it.  A debt reschedule plan will be approved
at a general meeting of creditor institutions.

In June, the company asked the creditors to alleviate its
debt service burden and extend debt moratorium till 2003
(Korea Herald  07-Aug-2000)

YEUNGNAM MERCHANT BANKING: Told to write down cap value
-------------------------------------------------------
The South Korean government ordered Yeungnam Merchant
Banking Corp. to write down the entire value of its
existing share capital and then sell new shares to state-
run Korea Deposit Insurance Co., a financial institution
regulator said.

The action effectively would mean using public funds to
clean up cash problems at the ailing finance company, which
specializes in taking deposits and making short-term loans,
the Financial Supervisory Service said in a statement.
Yeungnam has 123.4 billion won ($110.6 million) more debts
than assets, according to the regulator. Its business was
suspended for three months, to Aug. 23, after its losses
widened and there was a run on deposits.

The government wants to avoid another merchant bank
collapse, which would place an additional financial burden
on the government because of guarantees made by
authorities. Yeungnam has 1.1 trillion won of deposits.

Two thirds of Korea's merchant banks have been closed or
merged since the nation's 1997 economic meltdown that
triggered a record 22,000 corporate failures in 1998. The
government has since spent $80 billion to bolster the
battered financial industry. (Bloomberg  07-Aug-2000)


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

LION GROUP: Seeks Gov't arbitration to resolve debt
---------------------------------------------------
The Lion Group, owner of Malaysia's biggest publicly traded
steel-maker, is seeking help from the Corporate Debt
Restructuring Committee to push a complex plan to help
repay 10.2 billion ringgit ($2.7 billion) of debt, the Edge
weekly newspaper reported, citing the government's debt
mediator chairman, C. Rajandram.

Lion wants the debt mediator to help resolve several
issues, including creditors' demands for Lion's main
shareholder, William Cheng, to take a loss from the
reorganization of Lion's debt. Rajandram, who helps keep
such spats from ending up in courts, expects to resolve the
differences over the next two to three months, the
newspaper reported.

Last month, Lion, controlled by tycoon William Cheng, said
it plans to sell 4.2 billion ringgit of assets and swap
debt for new bonds and stock to help repay its loans. for
its Web site. (Bloomberg  07-Aug-2000)

PANTAI HOLDINGS: KLSE reprimands
TIME ENGINEERING: KLSE reprimands
---------------------------------
The Kuala Lumpur Stock Exchange (KLSE) has publicly
reprimanded time Engineering Bhd and Pantai Holdings Bhd
for failing to comply with the Main Board Listing
Requirements (MBLR).

The KLSE, in consultation with the Securities Commission,
have reprimanded the two companies for failing to announce
as well as make immediate announcement of its restructuring
proposal and share acquisitions to the exchange for public
release. Pantai Holdings has also been fined RM200,000 for
breaching the listing requirements.

In a Press statement, the KLSE said Time was reprimanded
for failing to announce details of its financial
restructuring proposal formulated by the Corporate Debt
Restructuring Committee to the exchange for public release
before the same was made available to the media.

"A listed company should refrain from promotional
disclosure activity which exceeds what is necessary to
enable the public to make informed investment decisions,"
the statement said.

The exchange also found Time in breach of Section 339 of
the MBLR in respect of an advertisement in The Star on
January 19 by Time dotCom Bhd that, in effect, amounted to
promoting the company's securities. The advertisement
contained a big caption focusing on the valuation of Time
Telekom.

"The KLSE views the above contravention seriously and
hereby cautions Time and its board of directors on their
responsibility to maintain appropriate standards of
corporate responsibility and accountability to achieve
greater disclosure and transparency to its shareholders and
the investing public," the statement said.

Meanwhile, the exchange also reprimanded Pantai Holdings
Bhd for breaching four sections - Sections 36, 114, 115 and
116 - of the MBLR. It fined the company RM200,000 for
breaching Sections 115 and 116. Pantai was fined for
failing to issue a circular to its shareholders for
information within a reasonable time in relation to the
purchase of Tongkah Holdings Bhd shares and to obtain the
company's approval in a general meeting within a reasonable
time in relation to the purchase of Avenue Assets Bhd
shares respectively.

Pantai also was reprimanded for failing to make immediate
announcements to the KLSE when it bought 26.72 million
Tongkah shares for RM108.8 million and 32.26 million shares
in Avenue Assets for RM208.15 million. (The Edge  05-Aug-
2000)

PCMS SDN: Elects to wind up
PPES WATER SDN: Elects to wind up
UTAMA CAPITAL SDN: Elects to wind up
UTAMA NOMINEES (ASING): Elects to wind up
UTAMA NOMINEES (TEMPATAN): Elects to wind up
UTAMA SECURTIES SDN: Elects to wind up
---------------------------------000--------
Cahya Mata Sarawak Bhd said PCMS Sdn Bhd, PPES Water Sdn
Bhd, Utama Capital Sdn Bhd, Utama Securities Sdn Bhd, Utama
Nominees (Asing) Sdn Bhd and Utama Nominees (Tempatan) Sdn
Bhd had at their respective extraordinary general
meetings held on August 4, resolved that the respective
companies be wound up voluntarily.

In a statement to the Kuala Lumpur Stock Exchange, Cahya
Mata said the shareholders of the respective companies also
approved the appointment of Yong Voon Kar and Kevin K. How
as liquidators of the companies.

PCMS Sdn Bhd is a wholly-owned subsidiary company of Cahya
Mata and was involved in general merchandising until it
ceased operations in February 1999. PPES Water Sdn Bhd is a
subsidiary company of Cahya Mata and was a contractor
for civil works in water supply projects until it ceased
operations in March 1999.

Cahya Mata's subsidiary Sarawak Securities Sdn Bhd had
acquired Utama Capital Sdn Bhd on September 24, 1999, and
subsequently all assets and liabilities of Utama Securities
Sdn Bhd were transferred to Sawarak Securities. Utama
Securities is a wholly-owned unit of Utama Capital.
Utama Nominees (Asing) Sdn Bhd and Utama Nominees
(Tempatan) Sdn Bhd, both wholly-owned by Utama Securities
Sdn Bhd, had not commenced operations since their
inception.  (AFX News Limited  07-Aug-2000)


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

CAPITOL WIRELESS INC: Creditors want guarantee call-in
------------------------------------------------------
Creditor-banks of Santiago-controlled Capitol Wireless,
Inc. (Capwire) are thinking of calling in the guarantee
provided by parent firm Republic Telecommunications
Holdings Corp. (Retelcom) on a portion of the subsidiary's
debts.

Banking sources said creditor banks are not happy over
Capwire's decision to run to the Securities and Exchange
Commission (SEC) for a debt reprieve after failing to meet
loans which have ballooned to 938 million Philippine pesos
($21 million at PhP44.625=$1). A portion of the loans are
also secured by fiber optic facilities.

"We have been discussing how to restructure the loans. Why
did they run to the SEC?" one of the sources said.

The cash-strapped international gateway operator filed with
the SEC last month a petition to be declared in a state of
suspension of payment, pending the implementation and
signing of the final terms for the restructuring of its
overdue obligations. SEC, however, opted not to act on
Capwire's petition since the recent passage of the
Securities Regulation Code (SRC) transfers to the courts
SEC's quasi-judicial functions covering the resolution of
intra-corporate disputes, suspension of payments cases and
private damage actions. (Business World  07-Aug-2000)

GUILD SECURITIES: PSE wants Reynolds trade explanation
JAKA SECURITIES: PSE wants Reynolds trade explanation
MAGNUM INT'L SECURS.: PSE wants Reynolds trade explanation
UPCC SECURITIES: PSE wants Reynolds trade explanation
----------------------------------------------------------
The Philippine Stock Exchange (PSE) is giving the stage to
brokers involved in suspected price rigging in publicly
held Reynolds Philippines Corp. (RPC) to explain their
trades on the stock.

BusinessWorld found brokers which have received the PSE's
notice to explain heavy trades were: Guild Securities,
Inc., UPCC Securities Corp., Jaka Securities Corp., and
Magnum International Securities, Inc. The brokers, however,
deny any involvement in alleged wash sale and kiting
activities.

The Business Conduct and Ethics Committee (BCEC) -- the
body which passes judgement on cases of broker violations -
- plans to meet today with the brokers noted to have traded
heavily on RPC since May this year.  This developed as the
Compliance and Surveillance Group -- the exchange's police
force on broker compliance to bourse rules -- filed late
last week its final report with the Securities and Exchange
Commission on alleged price fraud and recommended
suspension of trading of the stock.

PSE's Ramon T. Garcia, however, ruled out a suspension
since this would prejudice stockholders or prevent them
from selling the stock.  (Business World  07-Aug-2000)

NATIONAL STEEL CORP.: Swiss-led consortium eyeing it
----------------------------------------------------
A year after taking over Philippine Associated Smelting and
Refining Corp. (Pasar), one of the region's biggest copper
plants, Swiss metals trader Glencore International AG has
expressed keen interest in taking control of the shuttered
steel giant National Steel Corp.

Well-placed sources disclosed that Glencore, along with its
Filipino partner former agriculture secretary Carlos
Dominguez, has sent feelers to NSC's 3-member interim
receivership committee indicating its plan to make a firm
offer for the debt-saddled steel company.  Another Filipino
partner of Glencore, one of the world's biggest commodities
trader, is former trade and industry deputy minister Jose
P. Leviste.

Last year, Glencore and Dominguez, through Copper Smelting
Investment Inc., acquired NDC's 37.72-percent share in
Pasar as well as financial receivables of some P33 billion
for P3.23 billion. This was the first successful
privatization undertaken under President Estrada's term.

The acquisition was questioned by minority shareholders of
Pasar led by Teodoro Bernardino for being grossly
disadvantageous to the government but the Supreme Court
upheld in December the sale of the shares to Glencore and
Dominguez.  Glencore and Dominguez will infuse more than
P600 million for Pasar's plant turnaround, including P200
million for the acid plant rehabilitation to make its
operations more environmentally sound.

Glencore is the latest to surface as a possible white
knight for NSC and probably the most serious among the
bidders.  At least four foreign companies have expressed
interest in NSC--Dutch firm Ispat International NV,
Novolipetsk Iron and Steel Corp. of Russia, Duferco SA, and
Allengoal Steel Fabrication and Trading Co.

The government and the receivership committee have not
found any of these group's offers palatable because they
did not provide any long-term program to ensure NSC' long-
run viability.  The ideal buyer of NSC should have at least
$130 million in cash to restart the steel facility, at
least $600 million to rehabilitate the company, and well
connected to suppliers of steel slabs, NSC's basic input.

With NSC's idle plant costing them P12 million a month,
creditor-banks led by Philippine National Bank are
preparing to take over NSC with their plan to infuse $30
million in new capital, install a new management team, and
restructure the steel giant's P16-billion debt with or
without a strategic investor.

NSC remains an attractive business concern despite being
hobbled by heavy debt and stiff competition from imports. A
recent audit by the creditor-banks showed that almost all
of the firm's operations (except for its hot mill) could be
run profitably provided that it obtains full backing from
the government in terms of high tariff walls and stricter
implementation of the anti-dumping rules.

The government has pledged its all-out support to
interested buyers of NSC, which it considers a strategic
industry. (Philippine Daily Inquirer  07-Aug-2000)


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
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Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
DC USA. Darryl Henning, Managing Editor, James Philip P.
Jover and Maria Vyrna Ni¤eza, Editors.

Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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