---

     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, September 12, 2000, Vol. 3, No. 177

                                     Headlines


* A U S T R A L I A *

EISA: Warns of $40M 1H loss
EISA: Austar gives "take it or leave it" bid ultimatum
GREYHOUND PIONEER: 2, maybe 3 bidders, in the running
ONE.TEL: Posts net loss of $291.1M
WORLDSCHOOL: Posts 1H loss


* C H I N A  &  H O N G  K O N G *

CHE HUNG COMPANY LTD: Facing winding up petition
CREATIVE CELL INTERIOR DESIGN: Facing winding up petition
DOUGO FURNITURE SUPPLIES LTD: Facing winding up petition
EASTERN SENSE LTD: Facing winding up petition
EDEX ENTERPRISES LTD: Facing winding up petition
EMPERO HOLDINGS LTD: Facing winding up petition
EXCELSIOR TRAVEL SERVICE LTD: Facing winding up petition
FAILAND LTD: Facing winding up petition
FARENCO SHIPPING CO. LTD: Facing winding up petition
GERBER SYSTEMS (FAR EAST)LTD: Facing winding up petition
GLOREX INVESTMENTS LTD: Facing winding up petition
GOLD FLASH GROUP DEVELOP.LTD: Facing winding up petition
GOLD PILE CONST.& ENGIN.LTD: Facing winding up petition
GREAT BILLION TRADING LTD: Facing winding up petition
GREAT EASTERN DYEING AND PRINT.: Facing winding up petition


* I N D O N E S I A *

PT ASTRA INT'L: Posts Rp702.5B loss for 1H


* J A P A N *

BRIDGESTONE: Stock drops more, advisers quit
MITSUBISHI MOTOR CORP.: Pres. quits, Daimler deal improved
SEIBU DEPT. STORES: Looking to Itochu Corp. for rescue
SOGO CORP.: Set to claim damages against ex-chairman


* K O R E A *

CENTRAL BANKING CORP.: Consolidation closer
DAEWOO MOTOR: Posts 1 trillion won 1H net loss
HYUNDAI ELECTRONICS INDUS.: Banned from selling new shares
HYUNDAI HEAVY INDUSTRIES: Banned from selling new shares
HYUNDAI SECURITIES: Banned from selling new shares
KOREA MERCHANT BANKING CORP.: Consolidation closer
KOREA MERCHANT BANKING CORP.: Goes bankrupt,closes for now
SAEHAN INDUSTRIES,INC.: Creditors reject workout plan
SAEHAN MEDIA: Creditors reject workout plan


* M A L A Y S I A *

MBF HOLDINGS BHD: Modifies debt restructuring plan


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

NATIONAL STEEL CORP.: Liquidation appears as last resort
URBAN BANK: Economic sabotage charges filed
URBANCORP INVEST.CORP: Economic sabotage charges filed


* S I N G A P O R E *

SOGO CORP.(Singapore): E&Y named judicial manager for unit
TARARONE INVESTMENTS: E&Y named judicial manager for unit


* T H A I L A N D *

BANGKOK MASS TRANSIT: Cash woes spark call to ease debt
FINANCE ONE: FRA demands payment on US$17M debt
SONDHI LIMTHONGKUL: Debt-ridden payment avoider


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

EISA: Warns of $40M 1H loss
---------------------------
Eisa gave warning today that its provisional unaudited loss
before tax for the six-month period ended June 30 will
exceed $40 million.

The struggling internet provider said that more than half
the loss related to costs incurred from the aborted OzEmail
bid. Company management claims that the company's viability
is now wholly dependent on the success of Austar's takover
offer.

Austar launched a friendly takeover for eisa in June this
year, rescuing the junior internet player from possible
financial collapse after the failure of the OzEmail deal.
As part of the move, Austar agreed to provide eisa with
short-term funding of $7.5 million for working capital.

EISA: Austar gives "take it or leave it" bid ultimatum
------------------------------------------------------
Shareholders in struggling Internet service provider eisa
have been given an ultimatum: accept Austar's offer now or
suffer the consequences.

Austar United Communications, which has extended its bid
for the plagued ISP three times since the initial offer on
June 20, has declared there will be no extension beyond
this Friday's 7pm deadline.

"I think when people realise that there is nobody else out
there, that we're serious but that we're also not going to
keep extending, then they'll make decisions," said Austar
head of corporate affairs Mr Bruce Meagher.

Confirming yesterday that the 20c per share offer was
final, Austar chief executive Mr John Porter warned this
could be shareholders' last chance to recover any money
invested in eisa.  Eisa has told shareholders that if the
Austar takeover fails, the company will probably be put
into voluntary administration. Eisa chairman Mr Evan Rees
has implored shareholders to accept.

Take up of the Austar bid has been slow, in part because
ofescrow arrangements affecting the largest shareholder,
KTX European Holdings, associated with eisa co-founder Mr
Johnson Wang. Those shares could only be released from
escrow once Austar had acquired half of the other
outstanding shares.

When this finally happened, Austar's holding jumped from
around 20 per cent to 80 per cent.  Like many takeovers,
shareholders have been hanging on, hoping for an improved
offer. Added to that is the fact that most shareholders
will suffer a painful jab in the hip pocket - eisa stock
was at around $3 at its high in March. (Sydney Morning
Herald  11-Sept-2000)

GREYHOUND PIONEER: 2, maybe 3 bidders, in the running
-----------------------------------------------------
John King, owner of Premier Motor Service, has announced
it's made a last-minute bid for Greyhound Pioneer. After
the adjournment of two creditors' meetings, King claims his
bid is valued at $A21 million and higher than the
McCafferty's offer.

Tony McCafferty, managing director of McCafferty's, said it
would revise its bid from around $A17 million, including
part payment to unsecured creditors and a separate offer to
shareholders. DD Travel Club is also considering a takeover
offer.  Final bids will be required to be lodged with
Greyhound Pioneer administrator, Rick Dennis of Ernst and
Young, by 5pm on 12 September 2000.

ONE.TEL: Posts net loss of $291.1M
----------------------------------
Junior telco One.Tel does not anticipate paying franked
dividend in the coming year after posting a net loss of
$291.1 million for the year ended June 30.

The company said it would not have franking credits
available in order to pay franked dividends. The company
today did not declare a final dividend compared to a 0.1
cent unfranked dividend in the previous corresponding
period.

One.Tel's result compares to a net profit of $7.0 million
for the previous corresponding period.  Included in the
result was an abrnormal loss of $33.5 million comprised of
$39.9 million worth of deferred expenditure costs relating
to the prior year which were written off as a result of a
change in accounting policy.

The abnormal loss also included $7.9 million for a non-
performance payment relating to the company's rollout of
its GSM 1800 network and $1.5 million in compliance costs.
One.Tel's sales revenue boosted to $653.4 million compared
to $326 million, with international revenues increasing to
$243 million.

"Growth in international revenues is largely attributed to
growth in subscriber numbers in all countries in which
One.Tel has a presence, particularly in the United Kingdom
...," One.Tel said. "Growth in Australia has been due to
significant growth in fixed wire subscribers largely as a
result of the 17.5 cents local call promotion."

One.Tel said that fixed wire subscribers grew by 67 per
cent during the year. (Fairfax I.T. 11-Sept-2000)

WORLDSCHOOL: Posts 1H loss
--------------------------
On-line education service Worldschool posted disappointing
results for the half year ended June 30 and will fall
significantly short of full-year prospectus forecasts.

Worldschool reported Friday night that it posted an $11.7
million net loss for the six-month period ended June 30 on
revenue of just $339,000. The loss included development
costs of $2.6 million, sales and marketing costs of $2.4
million and employment and staffing costs of $3.9 million.
Expenses totalled $12.1 million, up from $3.1 million in
the previous corresponding period. Its share price was
unchanged at 21c on Friday, well below its $1 issue price.

In its March prospectus, Worldschool forecast revenue for
the 2000 calendar year of $3 million and a loss of $14.5
million. Worldschool deputy chairman Mr Ted Davis, who,
along with chief financial officer Mr Howard Woolcott, is
filling in for recently departed chief executive Mr Ashley
Owen, said the company would not meet full-year revenue
forecasts.

Earlier this month Worldschool said revenue per paying
subscriber had been "lower than initially anticipated."
Losses for the full year might be out by as much as $2
million but the company's new business model would increase
revenue next year, Mr David said.

For the 2001 calendar year, Worldschool, which has cash
reserves of $21 million, is predicting revenue of $14.6
million and a loss of $5.1 million.  Worldschool recently
switched business models and is now selling its services
direct to secondary schools rather than students and their
parents. So far more than 100 schools have signed up for
the service, resulting in about 50,000 licensed school
subscribers.

Mr David also said Worldschool had significantly reined in
costs, cutting staff numbers from 96 to 52 and halving its
intended spending of $6.5 million on marketing.  (Sydney
Morning Herald  11-Sept-2000)


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

CHE HUNG COMPANY LTD: Facing winding up petition
------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on September 20 on the petition of
the Commissioner of Inland Revenue of Hong Kong for the
winding up of Che Hung Company Limited. A notice of legal
appearance must be filed on or before September 19.

CREATIVE CELL INTERIOR DESIGN: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on September 20 on the petition of
Wan Man Fai for the winding up of Creative Cell Interior
Design Limited. A notice of legal appearance must be filed
on or before September 19.

DOUGO FURNITURE SUPPLIES LTD: Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on October 11 on the petition of
Wong Sn Shui for the winding up of Dougo Furniture Supplies
Limited. A notice of legal appearance must be filed on or
before October 10.

EASTERN SENSE LTD: Facing winding up petition
---------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on November 8 on the petition of
Hongkong Macau International Finance Company Limited for
the winding up of Eastern Sense Limited. A notice of legal
appearance must be filed on or before November 7.

EDEX ENTERPRISES LTD: Facing winding up petition
------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on October 25 on the petition of
Hinquand Enterprise Limited for the winding up of Edex
Enterprises Limited. A notice of legal appearance must be
filed on or before October 24.

EMPERO HOLDINGS LTD: Facing winding up petition
-----------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on November 1 on the petition of
Bank of China, Hong Kong branch for the winding up of
Empero Holdings Limited. A notice of legal appearance must
be filed on or before October 31.

EXCELSIOR TRAVEL SERVICE LTD: Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on September 27 on the petition of
The China and South Sea Bank Limited for the winding up of
Excelsior Travel Service Limited. A notice of legal
appearance must be filed on or before September 26.

FAILAND LTD: Facing winding up petition
---------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on October 11 on the petition of
Lam Chok Wai for the winding up of Failand Limited. A
notice of legal appearance must be filed on or before
October 10.

FARENCO SHIPPING CO. LTD: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on October 4 on the petition of
Orix Ship Resources Pte. Limited for the winding up of
Farenco Shipping Company Limited. A notice of legal
appearance must be filed on or before October 3.

GERBER SYSTEMS (FAR EAST)LTD: Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on October 25 on the petition of
Lam Ming Kit, Twikie for the winding up of Gerber Systems
(Far East) Limited. A notice of legal appearance must be
filed on or before October 24.

GLOREX INVESTMENTS LTD: Facing winding up petition
--------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on October 18 on the petition of
The Hongkong and Shanghai Banking Corporation Limited for
the winding up of Glorex Investments Limited. A notice of
legal appearance must be filed on or before October 17.

GOLD FLASH GROUP DEVELOP.LTD: Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on October 4 on the petition of The
China and South Sea Bank Limited for the winding up of Gold
Flash Group Development Limited. A notice of legal
appearance must be filed on or before October 3.

GOLD PILE CONST.& ENGIN.LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on October 25 on the petition of
China Civil Engineering Construction Corporation for the
winding up of Great Eastern Dyeing and Printing Limited. A
notice of legal appearance must be filed on or before
October 24.

GREAT BILLION TRADING LTD: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on October 4 on the petition of Hua
Chiao Commercial Bank Limited for the winding up of Great
Billion Trading Limited. A notice of legal appearance must
be filed on or before October 3.

GREAT EASTERN DYEING AND PRINT.: Facing winding up petition
-----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing on November 8 on the petition of
Chan Chi Fung for the winding up of Great Eastern Dyeing
and Printing Limited. A notice of legal appearance must be
filed on or before November 7.


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

PT ASTRA INT'L: Posts Rp702.5B loss for 1H
------------------------------------------
PT Astra International has reported a loss of Rp702.48bn
for the first half of this year. By comparison, the company
recorded a Rp1,529.37bn net profit for the same period a
year ago.

The loss comes after the largest automotive industry in the
country had a 39.5 percent stake in it acquired by a
foreign consortium led by Singapore's Cycle & Carriage.
Additionally, Cycle & Carriage just recently spent more
than $50 million to increase its own stake in Astra
International by 3.9 percent by buying Lazard Asia Fund's
interests in the firm.

Total revenue for Astra was Rp12,899.98bn for the first
half of this year, a 120.92 percent rise from Rp5,839.23bn
for the same period a year ago. First-half revenue actually
reached over 85 percent of the full year's revenue of
Rp15,123.30 billion for 1999.

However, a 133 percent rise  in the cost of goods sold
(COGS), totaling Rp10,357.67bn, offset the revenue stream.
COGS for the same period in 1999 was only Rp4,448.08
billion.  Astra has recorded Rp2,472.62 billion in non-
operating charges, of which Rp1,999,31 billion came from
foreign exchange losses.

Total liabilities in Astra International stood at Rp
23,453.38 billion as of June 30, an increase from
Rp 19,026.40 billion the year before.

A few days ago, Astra International announced plans to
complete debt repayment amounting to $200 million and Rp200
billion before the end of the year. Its management told JSX
that it would use operating profits and compensation funds
from the Honda Motor Company Limited (HMC) for the planned
debt repayment.

Under its restructuring plan, Honda Motor will inject
Rp1.28 trillion in fresh funds to acquire 43.47% of PT
Federal Motor (FM) shares through new issuance. Federal
Motor is a subsidiary of Astra International. New shares
would be taken over by Honda Motor while Astra's stake
would decrease to 56.53% from an initial 95%.


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

BRIDGESTONE: Stock drops more, advisers quit
--------------------------------------------
Shares of Bridgestone Corp., the Japanese parent company of
Bridgestone/Firestone, fell to an eight-year low Friday in
Tokyo, closing down 155 yen at 1,110 yen.

Additionally, the public-relations firm hired by
Bridgestone/Firestone Inc. to deal with allegations that
defective tires caused dozens of fatal wrecks has resigned.
Fleishman-Hillard International Communications Inc. of St.
Louis was hired two months ago to answer reporters'
questions and to advise the tire company on how to handle
the situation.

Bridgestone/Firestone has been criticized for failing to
respond quickly to reports linking its tires to hundreds of
accidents, many of them fatal, in the United States and
other countries.  Bridgestone/Firestone plans to hire
another outside public-relations firm. (International
Herald Tribune  10-Sept-2000)

MITSUBISHI MOTOR CORP.: Pres. quits, Daimler deal improved
----------------------------------------------------------
The president of Mitsubishi Motors resigned on Friday after
DaimlerChrysler secured more favorable alliance terms with
the troubled Japanese carmaker and nominated one of its own
executives as Mitsubishi's chief operating officer.

DaimlerChrysler also won the right to increase its stake in
MMC to 100 percent after three years. The group had
considered increasing its stake to about 37 per cent but it
abandoned the proposal amid concerns that it might have to
consolidate MMC's near $14bn (œ9.7bn) debt on its balance
sheet.

Katsuhiko Kawasoe, MMC president, is to stand down in
November, to be succeeded by Takashi Sonobe, head of
international operations. His departure follows a 30-year
cover-up of customer complaints by MMC and the recall of
more than 620,000 cars.

In a sweeping management overhaul Rolf Eckrodt, head of
DaimlerChrysler's Adtranz rail systems business, becomes
MMC's chief operating officer.  Announcing new terms for
its alliance with DaimlerChrysler, MMC said the group would
pay 10 per cent less for its proposed 34 per cent stake in
the company. The deal, reflecting a sharp decline in MMC's
share price since July, will reduce DaimlerChrysler's
investment to Y202.4bn (œ1.34bn).

The move ended weeks of speculation about how the scandal
at MMC would affect the six-month-old alliance with
DaimlerChrysler.  The reshuffle casts fresh doubt over
MMC's alliance with Volvo, DaimlerChrysler's Swedish rival,
in commercial vehicles. This week, Volvo said it might
increase its stake in a new truck and bus company from 19.9
per cent to match DaimlerChrysler's stake on the car side.
(Financial Times  08-Sept-2000)

SEIBU DEPT. STORES: Looking to Itochu Corp. for rescue
---------------------------------------------------------
Debt-ridden Seibu Department Stores Ltd. is looking to tie-
up with Itochu Corp. as the means of its rescue.

Seibu holds a total of 446.1 billion yen in interest-
bearing debts. Additionally, the company must contribute 50
billion
yen to the Saison group to help write off the debts of
Seiyo Kankyo Kaihatsu, a real estate developer that applied
for special liquidation in July.

Traditionally, department stores have looked to apparel
makers and other suppliers for improving their
profitability.
Recently, Seibu has been developing its own products,
however, buying goods from suppliers and expanding the
number of outlets that it operates itself. Though Seibu has
been praised for its product development and store-
operating strategies, its financial circumstances have not
improved.

Additionally, Seibu is planning to use information
technology to raise its profit margin on sales. It is
looking to raise its current rate of profit from about 2
percent to 4 percent by using Itochu's advanced IT and
carefully selecting items that sell well.

Seibu also aims to reduce interest-bearing debts by
raising 108.1 billion yen through securitization of
ownership of its Ikebukuro store in Tokyo, the company will
have to shoulder a new burden of about 6 billion yen a year
to pay the store's rent.

SOGO CORP.: Set to claim damages against ex-chairman
----------------------------------------------------
Sogo Co., the failed department store chain now under a
court-sponsored reconstruction process, plans to take
action for damages against former chairman Hiroo Mizushima.

Sogo is to submit a report on Mizushima's role in its
management to Tokyo District Court on Wednesday. It then
plans to file a petition with the court before the end of
October asking it to judge whether Mizushima has personal
responsibility to compensate the company and assess the
amount of compensation.

Sogo is also considering filing a complaint with law-
enforcement authorities for criminal action against
Mizushima on charges of aggravated breach of trust. The 88-
year-old Mizushima oversaw Sogo group's operations for 38
years until resigning as chairman in April. Sogo officials
assert that his reckless management caused the company to
collapse under heavy debt.

Sogo effectively went bankrupt in July, filing for court
protection from creditors under a new civil rehabilitation
law.  The new law, which took effect in April this year,
provides for such failed companies to initiate claim
actions for damages against former company executives at an
early stage by asking a court to determine whether they are
responsible for the failure.


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

CENTRAL BANKING CORP.: Consolidation closer
KOREA MERCHANT BANKING CORP.: Consolidation closer
--------------------------------------------------
The Financial Supervisory Commission (FSC) on Friday
rejected management improvement plans proposed by Korea
Merchant Banking Corp. and Central Banking Corp. Each bank
has had its operations suspended by the FSC for cash flow
problems. FSC will conduct a week-long evaluation of the
assets and liabilities of the two merchant banks beginning
September 15. If the liabilities of the two distressed
banks exceed their assets, they will be consolidated into
the Korea Deposit Insurance Corp.

DAEWOO MOTOR: Posts 1 trillion won 1H net loss
----------------------------------------------
In a report filed Friday with the Financial Supervisory
Service (FSS), Daewoo Motor said it had incurred a one
trillion won net loss for the first half of this year.
The report further showed that the firm recorded 3.08
trillion won in sales, up 13 percent over last year. Its
operating losses for the period reached 319.3 billion won.
Daewoo Motor attributed the huge losses to corrections of
past accounting errors incorporated into the books for the
first half.

HYUNDAI ELECTRONICS INDUS.: Banned from selling new shares
HYUNDAI HEAVY INDUSTRIES: Banned from selling new shares
HYUNDAI SECURITIES: Banned from selling new shares
----------------------------------------------------------
The South Korean government on Friday banned Hyundai
Securities Co. and two other affiliates from selling new
shares to the public until next year as punishment for
covering up a secret debt guarantee made by one for
another.

The government said Hyundai's profitable shipbuilding unit
propped up a weaker electronics affiliate by guaranteeing a
$220 million loan in a transaction arranged by Lee Ik Chi,
the chairman of Hyundai Securities. Mr. Lee resigned during
the government's investigation into the case last month.

The secret arrangement was just one of many entered into
between affiliates of South Korea's biggest companies in a
practice known as cross-debt guarantees.  Though the three
companies were banned from share sales for the next four
months, they will still be allowed to sell bonds overseas
to institutional investors.

The Financial Supervisory Commission also said that it had
ordered Hyundai Securities, Hyundai Heavy Industries Co.
and Hyundai Electronics Industries Co. to publicly
advertise their misconduct in newspapers.  The punishment
stems from a lawsuit Hyundai Heavy filed in July against
Hyundai Electronics and Hyundai Securities over the $220
million loan payment.

Hyundai Electronics secured a three-year loan from Canadian
Imperial Bank of Commerce, or CIBC, in 1997. The chipmaker
used 13 million shares it held in another affiliate,
Hyundai Investment Trust & Securities Co., as collateral
for the loan.  CIBC wanted an option to sell the shares
back at a future date to protect the bank against any
possible losses.

CIBC received the "put" option from Hyundai Heavy, after
Hyundai Electronics refused to make such a guarantee. In
return, Mr. Lee led Hyundai Securities and the chipmaker to
provide a written agreement that the shipbuilder would not
suffer any "financial burden" for guaranteeing the loan for
Hyundai Electronics.

CIBC decided to exercise its option in July, after Hyundai
Investment Trust ran into financial difficulties, with
liabilities exceeding its assets by 1.2 trillion won ($1.08
billion). Hyundai Heavy paid the money, then turned around
and sued Hyundai Electronics, claiming the chipmaker should
have bought back the shares under the written agreement it
provided. (International Herald Tribune, Bloomberg 10-Sept-
2000)

KOREA MERCHANT BANKING CORP.: Goes bankrupt,closes for now
----------------------------------------------------------
Korea Merchant Banking Corp. filed for bankruptcy Aug. 31
after failing to repay 14 billion won of debts falling due
the day before, the Financial Supervisory Service (FSS) has
confirmed.

FSS the next day ordered a closure of the merchant bank for
three months and dismissed its executives. Korea Merchant
has been struggling to deliver on the capital increase
requirements for the past several months. It was estimated
that it would require between 20 - 30 billion won to pull
the merchant bank out of financial pitfalls.

The bank's major shareholders -- Korea's Hana Bank and
Boston Overseas Banking Corp. of the US - said they could
not afford to participate in capital injections of such
scale.

SAEHAN INDUSTRIES,INC.: Creditors reject workout plan
SAEHAN MEDIA: Creditors reject workout plan
-----------------------------------------------------
Creditors have rejected debt workout programs for two major
subsidiaries of insolvent Saehan Group - Saehan Industries,
Inc. and Saehan Media.

In a meeting Friday, 27 creditors of Saehan Industries
rejected a workout plan proposing a 400 billion won debt-
for-equity swap and five other items, accepting only one
proposal to spin off the company's marketing unit.
Meanwhile, 22 creditors of Saehan  Media also turned down a
plan for an 80 billion won debt-for-equity swap and other
workout terms. Saehan's main creditor Hanvit Bank confirmed
the rejection Saturday.

Creditors are supposed to meet again before Sept. 19 to
review the rejected proposals.


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

MBF HOLDINGS BHD: Modifies debt restructuring plan
--------------------------------------------------
MBf Holdings Bhd's proposed debt restructuring scheme has
been modified to effect a larger capital reduction of 45
sen of the par value from each 50 sen share compared with a
33.3 sen reduction previously.  The shares would then be
consolidated on the basis of 20 five- sen shares into one
RM1 share, compared to the previous proposal of six shares
of 16.7 sen each into one share.

"A number of scheme creditors are currently secured on MBf
Capital shares. Any shortfall to the scheme creditors,
after taking into account the MBf Capital share price, will
be converted into MBf-H (MBf Holdings) shares," the company
said in a statement to the KLSE yesterday.  "As such, the
financial effects of the proposed scheme of arrangements on
the share capital, earnings, NTA, gearing, shareholding
structure and substantial shareholdings would be dependent
on the performance of MBf Capital share price."

In addition, MBf Holdings will be issuing warrants to be
attached to the debt owed to MBf Asia Capital Corp Holdings
as part of the proposed acquisition of MBf Carpenters and
issuing another set of warrants to the debt arising from
the proposed acquisition of MBf Card Services Sdn Bhd from
MBf Asia Capital Corp Ltd. (The Star  09-Sept-2000)


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

NATIONAL STEEL CORP.: Liquidation appears as last resort
--------------------------------------------------------
Efforts to rehabilitate National Steel Corp. (NSC) have
proved futile as the firm's interim receivership committee
(IRC) has been left with no choice but to move for
liquidation following the opposition posed by the company's
majority shareholder on the proposed rehab plan.

In a telephone interview with Businessworld, IRC chairman
Monico V. Jacob said he is in the process of drafting a
liquidation plan for NSC since the IRC is left with no
alternative other than liquidation.

"The owners have formalized their objections to the
proposed rehab plan...their approval is crucial to the
implementation of the plan which calls for an increase in
authorized capital stock (among others). Without their
approval, the rehab plan cannot be implemented and we have
no choice but to recommend liquidation," Mr. Jacob said.

The receivership committee will meet with the Securities
and Exchange Commission (SEC) today to discuss the terms of
NSC's liquidation.  For her part, SEC chairperson Lilia R.
Bautista said unless the steel maker is able to find an
investor within the next four days and get creditor
approval for the same, the commission has no plans of
extending the firm's debt moratorium, which is set to
expire on September 15.

The beleaguered steel maker took a turn for the worse last
week when Malaysian government agency, Pegurusan Danaharta
Nasional Berhad -- trustee of over 2.02 billion shares of
Hottick Investment Ltd. in NSC -- filed its opposition to
the rehabilitation plan.

In its opposition, Danaharta questioned the feasibility of
the plan alleging that it is vastly skewed in favor of
domestic creditors. "Besides the proposed debt
restructuring of NSC, it does not seek to address the
operational aspects once the scheme is implemented. Issues
like management and technical expertise to be employed has
been neglected. Future business direction and operational
strategy is typically vague," Danaharta said.

Since Danaharta did not submit an alternative plan along
with its objections, Mr. Jacob said there is nothing much
the IRC can do to save the steel company.  "NSC can be made
whole if only an investor would come in...but no one wants
to come in at the moment. We will meet with the creditors
and lawyers to see what would be the next step for us,"
Ms. Bautista said.

In any case, she added, "government will not just let NSC
go to waste since it (government) has its share of claims
against NSC."

Ms. Bautista said the commission is getting ready to create
a liquidator in an effort to expedite the resolution of the
NSC case.  "We have to resolve fast...we've been receiving
letters from the workers...we have asked them to be patient
and I'm sure someone is bound to come in. The problem now
is that everyone wants to run the firm and the interested
investors don't know who to really talk to," the SEC chief
said.

She expressed confidence that the foreclosure of the NSC
properties by the banks would pave the way for the entry of
the much-need investors into NSC.  "It could be better for
the banks to foreclose and then negotiate with a white
knight. Since right now, it is more difficult for investors
to deal with a debtor (Danaharta) so far away...and who
seems to have no intention to rehabilitate NSC," she
added.

For his part, Bangko Sentral (central bank) Governor Rafael
B. Buenaventura said "the resolution of this issue will be
a tremendous benefit to the creditor banks. NSC alone will
ease the NPLs by about 5%, and will be a big boost for
large creditors like the Philippine National Bank (PNB),"
Mr. Buenaventura said.

Due to the steel maker's troubles and the poor state of the
steel industry, the central bank chief believes that
liquidation is the best option available to creditors.
"Liquidating and restarting it as a new entity may the only
way to go," he said. "Then we can sell the company to a
strategic investor."

Aside from PNB, which is NSC's biggest creditor with five
billion Philippine pesos ($109.68 million at PhP45.589=$1),
state-owned Land Bank of the Philippines also has a PhP1.2
billion exposure, while 14 other banks make up the balance.
NSC president Ibrahim Bin Bidin recently asked the SEC to
reconsider the proposed lease of the firm's Iligan plants,
by Allengoal Steel Fabrication and Trading. Mr. Bidin said
Allengoal has tapped US-based technical consultant Hatch to
look into the facility of NSC.

Creditors, however, continue to oppose the said lease
contract, as they question Allengoal's technical
capability.  "Allengoal as a short term operator might not
religiously preserve and maintain the steel plant to
minimize its expenses, thus, dissipating the value of NSC's
assets during the term of lease, to the prejudice of the
latter's creditors," creditors said.

NSC filed its petition to be declared in a state of
suspension of payment and rehabilitation last December 28
after it failed to meet obligations of over PhP16.18
billion ($354.91 million). NSC's difficulties in meeting
its obligations were allegedly brought about by
circumstances which were totally beyond its control such as
the government's accession to the World Trade Organization
which led to the proliferation and dumping of cheap
imported steel products in the local market.

Like many other firms hit by the Asian flu, NSC suffered
foreign exchange losses when the cost of imported raw
materials became higher than the selling price of the steel
maker's finished products. (Business World  11-Sept-2000)

URBAN BANK: Economic sabotage charges filed
URBANCORP INVEST.CORP: Economic sabotage charges filed
------------------------------------------------------
Cases of economic sabotage and estafa (fraud) formally were
filed against key officers of Urban Bank Corporation (Urban
Bank) and Urbancorp Investment Corporation (Urbancorp)
before the Department of Justice (DoJ) on Monday.

Bangko Sentral ng Pilipinas (BSP) governor Rafael
Buenaventura and Philippine Deposit Insurance Corporation
(PDIC) president Norberto Nazareno have personally filed
the charges against 10 officers of Urban Bank and
Urbancorp, led by the chairman of both companies Arsenio
Bartolome III.  The charges filed against the officers were
in connection with alleged irregularities that led to the
closure of the bank in April this year.

The BSP and the PDIC are still documenting other cases that
will be filed in connection with the collapse of the
institution. (ABS/CBN News Channel 11-Sept-2000)


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

SOGO CORP.(Singapore): E&Y named judicial manager for unit
TARARONE INVESTMENTS: E&Y named judicial manager for unit
----------------------------------------------------------
Japanese retail giant Sogo moved closer towards winding
down its operations with the appointment of Ernst & Young
(E&Y) as judicial manager for one of its companies,
Tararone Investments, which runs the Sogo Food Hall at
Paragon.

One of Tararone's creditors, Benelux Flowers & Food, had
objected to the appointment on the grounds of a conflict of
interest as two other Sogo units, Sogo Department Stores
(S) and SIDC (S), had appointed Ernst & Young already.
But Judicial Commissioner Chan Seng Onn in the High Court
yesterday confirmed the appointment, subject to conditions.

Benelux lawyer B. Vijayan Peter had argued that SIDC owed
Tararone about $350 million which Ernst & Young had to try
and recover if it was Tararone's judicial manager. However,
this might conflict with its role as judicial manager for
the two other companies which required it to preserve their
assets, he said.

But Ernst & Young's Mr Patrick Ang argued that the loan
details were documented clearly, with no dispute regarding
the loan.  However, he added that investigations would be
be carried out regarding the loans if required.  Any money
recovered would be distributed to Tararone and SIDC
according to the law, he said.

Another point raised by Benelux was an $8.9 million loan
which had been made by Tararone to Sogo Department Stores.
The latest accounts appeared to state that the loan was
interest-free but Tararone's accounts reported the
opposite, Mr Peter said, adding that this raised another
conflict.

Mr Ang said this was "ambiguous phrasing," and referred to
earlier audited accounts of both companies which said the
loan was interest-free. Lower costs and time-savings would
result from appointing only one judicial manager, he
pointed out.

However, to reduce the risk of conflict, the judge imposed
the conditions that Ernst & Young must set aside an area
where all documents and materials have to be filed and kept
for inspection by creditors.  JC Chan told Mr Peter not to
worry about conflicts of interest. "If they don't do their
job or have no guts, then you come back to court."

In July, the three Sogo companies had sought to be placed
under judicial management to prevent creditors from
scrambling for their assets following the the parent
group's move to file for bankruptcy.  (Straits Times  09-
Sept-2000)


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

BANGKOK MASS TRANSIT: Cash woes spark call to ease debt
-------------------------------------------------------
Bangkok Mass Transit System Corp, operator of the BTS
skytrain, will ask its creditors to revise debt schedules
after missing two months' payments as customer rides remain
below target.

The BTSC board last Monday appointed two financial advisers
to help draft a revised restructuring plan to meet reduced
cashflow projections. Also to be re-examined is the
company's projections of patronage, originally estimated
five years ago at 600,000 rides a day but now barely one-
third of this target.

Chatchaval Bhanalaph, senior executive vice-president at
Siam Commercial Bank, said formal contracts with the
advisers would be signed this week. One of the advisers is
Chase Manhattan Bank; the other has not been disclosed.
Vichet Bunthuwong, chief financial officer of BTSC, said
the company now projected 250,000 rides a day to the end of
this year and 400,000 a day by December 2001.

Promotions launched since July had lifted patronage to
about 170,000 rides a day. Still, delays in several
marketing initiatives, such as the installation of
escalators at stations, the establishment of public
transport interchange areas and park-and-ride facilities
have caused revenue to fall below target.  As a result,
BTSC has defaulted on debt payments on long-term loans of
177.6 million baht and $22.9 million, prompting the efforts
to reopen talks with creditors.

Mr Vichet said that under the company's existing debt plan,
interest payments to Thai creditors had to be paid monthly,
with foreign creditors paid every six months. Although BTSC
had already defaulted on two months' payments, it was
trying to make its next payment on time to avoid being
classified as non-performing.

Restructuring will cover not only debt but also the
company's plans to make an initial public share offering in
the next few months.  The company hopes to float 584.8
million shares of 10 baht par value. Approval was received
from the Securities and Exchange Commission in July.

Market rules call for an offer to be made within six months
of regulatory approval, although this can be extended by up
to 12 more months if requested.  Mr Vichet said BTSC hoped
to complete the issue by year-end. He acknowledged a
successful float would depend largely on progress in debt
restructuring, a process expected to take six months.

Siam Commercial Bank, owed about 11.6 billion baht by BTSC,
is the firm's biggest local creditor. KfW, the German
development bank, leads a syndicate owed $457.6 million in
debt, the World Bank's International Finance Corporation is
owed $80 million and subordinated loans from suppliers
total $9 million.

Phaithoon Kijsamrej, Siam City Bank's president, said
creditors were in constant touch with BTSC, with
significant flexibility already given by creditors to match
cashflow.  Prospects for BTSC were improving, not just
because of promotional campaigns, but also the fact that
higher petrol prices had encouraged more commuters to use
the skytrain.

The only way to meet patronage goals was to extend the
skytrain's routes, he said, but existing debt remained
high, making new investment difficult. Revenue in the first
half of this year was 328.6 million baht, 90% from
passengers, 8% from advertising and space rentals, and the
rest from other sources. Losses at the end of the first
half were 1.6 billion baht, including foreign-exchange
losses of 741.9 million baht.

BTSC has been successful in moving customers toward stored-
value, multiple-use tickets known as "skycards". Use of
these cards has increased by about 30% since they were
introduced in January, accounting for 50% of revenue by the
end of June.  (Bangkok Post  11-Sept-2000)

FINANCE ONE: FRA demands payment on US$17M debt
-----------------------------------------------
The Financial Sector Restructuring Authority (FRA), on
behalf of a handler of the now-defunct Finance One Plc, has
filed a lawsuit against a unit of Lehman Brothers Holdings
Inc., demanding US$17 million (Bt702.4 million) to pay
Finance One's creditors.

The suit against Lehman Brothers Special Financing Inc. was
filed in the US District Court for the Southern District of
New York.  The case involved two foreign currency swaps, an
interest rate swap and an option contract worth $55 million
that Finance One had entered into with Lehman prior to
floating the baht in July 1997, Finance One's special
manager Mongkhon Maksaereekun said.

Shortly after the baht was floated, Lehman Brothers Special
Financing Inc. terminated the contracts earlier than the
contracts' maturity, which came due in 1998, to cap its
losses.  As a result, Finance One at that time gained $10
million and another $7 million was incurred from
accumulated interest rates, he said.

The baht dipped to Bt28 to the dollar shortly after the
baht was floated and fell to its historically lowest level
of Bt56 against the greenback in January 1998, compared
with about Bt26 to the dollar before the float. The baht
yesterday closed at Bt41.57 to the dollar.

Instead of paying the obligation related to the early
termination of the contracts, Lehman purchased 12 issues of
bills of exchange (BEs), recently issued by Finance One
from Bangkok Bank and Citibank - acting as custodians -
with a combined face value of $9.85 million to offset
the obligation.

"By law, BEs can not transfer to other persons or entities
after issuers shut down business," Mongkhon explained.
"Such actions seemed to be unfair for other creditors, so
we had to file a lawsuit against Lehman to protect them. We
have confidence we will win the case since it is similar to
CMIC Finance and Securities Plc's case."

CMIC, another now-defunct company, finally won its case
after two years in court.  Finance One was once the
country's largest finance company. It was seized by the
Thai government in 1997 and its assets were liquidated
under the management of the FRA.

Mongkhon added that the case would not have an impact on
the repayment process to creditors as the FRA would
allocate the proceeds arising from the recent liquidation
to them proportionately.  For the asset portion which was
left over from the recent auctions, he said it would be
transferred to receivership officials after the FRA
becomes a defunct entity.  (World Times,Inc. 08-Sept-2000)

SONDHI LIMTHONGKUL: Debt-ridden payment avoider
-----------------------------------------------
Since the outbreak of the economic crisis, many Thai
businessmen haven't hesitated to reveal their innermost
feelings about debt repayment.  Among those financially
incapable of repaying loans, publisher Sondhi Limthongkul's
protests of insolvency have perhaps been the loudest.

His own theories about debt, however, differ from those of
most other businessmen in the Kingdom.  For example, steel
tycoon Sawasdi Horrungruang immediately set to work finding
ways to repay his steel group's loans, worth billions of
baht. His motto, which was highly admired at the time, is:
"I have no money, I can't repay loans - but I won't run
away."

Sondhi, however, has shown no enthusiasm for debt
repayment. From the day the debt-restructuring process
began for his flagship companies until now, with the
process completed, he has blamed creditors for showing
no sympathy and the government for abruptly changing the
foreign exchange policy, which automatically doubled the
foreign loan burden of his and many other companies.

Speaking at a public event last week - not about the
economy but rather about a martial arts novel - Sondhi
appeared to show no change in his thinking.  Debt
moratorium seems to be his mantra whenever the subject of
indebtedness - both of the government and of his own empire
- comes up.

Thailand is only doing foreigners a favour by guaranteeing
repayment of all loans, he said. We're fooling ourselves by
behaving as if we're still rich.  "Nobody forced those
foreign banks to extend loans to my company," he
continued. "They were willing and they received interest
payments. When the economy was in crisis, they said the
business outlook was poor [but] they still wanted to be
repaid."  (The Nation 11-September-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
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
DC USA. Darryl Henning, Managing Editor, James Philip P.
Jover and Maria Vyrna Nineza, Editors.

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

This material is copyrighted and any commercial use, resale
or publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
prohibited without prior written permission of the
publishers.  Information contained herein is obtained from
sources believed to be reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6
months delivered via e-mail. Additional e-mail
subscriptions for members of the same firm for the term of
the initial subscription or balance thereof are $25 each.
For subscription information, contact Christopher Beard at
301/951-6400.

                      *** End of Transmission ***