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

                             A S I A   P A C I F I C

            Thursday, October 12, 2000, Vol. 3, No. 199

                                      Headlines


* A U S T R A L I A *

BLAZER INT'L.: Appoints admnistrator
HARDIE INDUSTRIES: Lawsuits on horizon, bankruptcy ahead?
JOHNSON WANG: Failed entrepreneur on verge of bankruptcy
REALESTATE.COM.AU: Stake purchase to bring in capital
SOUTHPAC METALS MFG.PTY.: Liquidators appointed
SURF DIVE `N SKI: Creditor records in disarray
TELSTRA: Committed to long-term cost cuts


* C H I N A  &  H O N G  K O N G *

CHINA MOBILE: To make huge HK$242B writedown of goodwill
PACIFIC CENTURY CYBERWORKS: Shares fall to year's low


* I N D O N E S I A *

PT PERUSAHAAN DAGANG OMETRACO: IBRA appeals plan upholding


* J A P A N *

CHIYODA LIFE: AIG steps up with bidding interest
CHIYODA LIFE: S&P revises rating to 'R' from 'Bpi'
CHIYODA LIFE: Moody's downgrades it
DAIEI INC: Shaky fiscal condition weaker with resignations
SOGO CO: Files third lawsuit against former execs


* K O R E A *

DAEHAN INVESTMENT TRUST: Cabinet approves money infusion
DAEWOO GROUP: Shareholders to sue current,former execs
DAEWOO MOTOR: Break-up of company before sale OK'd
DAEWOO TELECOM: Sells off IT division
HYUNDAI ELECTRONICS: Floundering in rough financial seas
KOREA INVESTMENT TRUST: Cabinet approves money infusion


* M A L A Y S I A *

PRESSCRETE HOLDINGS: Rights issue proceeds to repay debt


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

EYCO GROUP: Creditors' claims surge
NATIONAL STEEL CORP.: New group eying it


* T H A I L A N D *

ITALIAN-THAI DEVELOPMENT: Misses Bt3.5B interest payments
SAHAVIRIYA OA: Stock transfer settles debt


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

BLAZER INT'L.: Appoints admnistrator
------------------------------------
Blazer International Limited, which sold corporate
entertainment packages to non-Games sponsors during
the Sydney 2000 Olympic Games, has appointed Ferrier
Hodgson and Company as voluntary administrator after its
operations collapsed this month.

Blazer owes at least 50 creditors a total of more than
$A500,000. The main reason for Blazer's insolvency is
believed to be cost over-runs in fitting out the building
it leased for the Games in late September 2000.

HARDIE INDUSTRIES: Lawsuits on horizon, bankruptcy ahead?
---------------------------------------------------------
Events in the United States (US) building sector in late
2000 could impact on Australia's James Hardie Industries
Limited.

Fellow building materials supplier, Owens Corning, has
filed for bankruptcy under a flood of asbestos lawsuits,
and Hardie also is facing asbestos claims, payouts from
which could hit the Australian company at its US base.

JOHNSON WANG: Failed entrepreneur on verge of bankruptcy
--------------------------------------------------------
Failed computer and Internet entrepreneur Mr Johnson Wang
edged a step closer to bankruptcy yesterday after the
Federal Court ruled he could not give evidence by video
link from Hong Kong.

Mr Wang and his wife Phynia flew to Hong Kong in June after
their Edge personal computer empire collapsed with debts of
more than $30 million.  Yesterday the Federal Court
considered a written affidavit dated August 4, in which Mr
Wang said he travelled to Hong Kong to raise funds and was
unable to leave because of his involvement in unspecified
business matters.

He also said he required time to sift through Edge's
financial statements to assess the creditors' claims.
But Justice Donald Hill rejected the explanations for Mr
Wang's absence as "vague."

"There's nothing to suggest that he has any reason to be in
Hong Kong now other than he wants to be. There is no
suggestion here that Mr Wang lacks the funds to come to
Australia. There is no real account of matters requiring Mr
Wang's attention in Hong Kong or elsewhere, save for the
assertion that he has business matters to attend to," he
said. "I'm conscious that the issue on the petition will be
whether the Wangs departed Australia to attend to the
matters that Mr Wang says they needed to attend to or
whether, as the creditors assert, they departed for reasons
of avoiding their creditors."

Mr Wang now has several weeks to return to Australia and
personally defend the bankruptcy claim which involves $3.2
million he and his wife allegedly owe the Edge estate.
However, it is unlikely Mr Wang will leave Hong Kong. He
indicated on an outgoing passenger statement, tendered
yesterday in court, that his departure from Australia was
permanent.

Reading from Mr Wang's affidavit, Justice Hill said: "There
is no suggestion that Mr Wang will ever return to Sydney."
If the bankruptcy is uncontested, Mr Wang will forfeit
property worth $600,000 to $900,000, including two
Queensland apartments and a house in the northern Sydney
suburb of Killara.

Mr Wang's solicitor Mr Alexander Law, said he did not know
if Mr Wang would return to Australia.  Mr Wang, who once
proclaimed himself as the Bill Gates of Australia, is also
the founder of failed Internet service eisa, which was last
week sold to pay TV operator Austar for just $13 million.
Mr Wang received nothing for his majority shareholding
after eisa shareholders rejected an initial $24.4 million
bid by Austar. (Sydney Morning Herald  11-Oct-2000)

REALESTATE.COM.AU: Stake purchase to bring in capital
-----------------------------------------------------
Real estate agent Ray White is expected to take up to a 50
percent equity stake in Realestate-.com.au this week,
undermining RP Data's grab for the online property group.
The deal, which may also involve fellow estate agent L.J.
Hooker taking a stake, is expected to provide a much needed
cash infusion of some $3 million to Realestate.com.au.

Realestate.com.au's current cash reserves are said to be
nearing empty despite the company receiving a $2 million
loan in August from major shareholder Macquarie Bank.
According to sources close to the company, such a deal
would see the number of listings on Realestate.com.au,
which holds about 35 per cent of the online market, jump by
60 per cent.

It would also give directors of Realestate.com.au a reason
to recommend shareholders reject RP Data's offer. Listed
property services group RP Data launched a takeover bid for
Realestate.com.au last week, offering Realestate.com.au
shareholders a cash payment of 10c for each share as well
as one RP Data share for every two Realestate.com.au
shares.

The expected deal with Ray White may also upset Fairfax's
online arm f2, which owns competitor property listing site
domain.com.au.  F2 on Monday said it had ended negotiations
regarding a possible business relationship with
Realestate.com.au, claiming such a move was not the
industry rationalisation it desired.

Rather, Mr Nigel Dews, f2 chief executive, said he believed
rationalisation was better achieved via partnerships with
the real estate industry, including real estate agents.
(Fairfax I.T.  11-Oct-2000)

SOUTHPAC METALS MFG.PTY.: Liquidators appointed
-----------------------------------------------
At the reconvened second meeting of creditors of Southpac
Metals Manufacturing Pty Ltd on October 6, the creditors
unanimously passed the resolution that the company be
placed into liquidation and Mark F Mentha appointed
liquidator.

SURF DIVE `N SKI: Creditor records in disarray
----------------------------------------------
Lux Daswani, who fled Australia in early October 2000, has
left debts of $A50 million and his retail and property
empire in disarray. Administrators Sims Lockwood and
Partners are expressing uncertainty that all creditors will
be located due to a lack of records.

Consequently, it is unlikely that all debts will be settled
in full. About 200 secured and unsecured creditors are
believed to exist. Administrators held a meeting October 10
to discuss issues with some creditors.

TELSTRA: Committed to long-term cost cuts
-----------------------------------------
Telstra has reaffirmed its commitment to long-term cost
reduction beyond the current round of cuts, but Telstra
chairman Bob Mansfield denied a newspaper report it was
unlikely to extend the current program beyond 2002.

"Telstra's cost reduction program has been well outlined to
investors this year and is on course," he said in a
statement.  "Telstra's strategy in establishing a platform
for growth will include continuous improvement in costs and
efficiencies, as well as initiatives to growth revenues in
new areas and compete strongly in traditional domestic
markets."

Mansfield said control of costs would continue to be one of
Telstra management's "highest ongoing priorities" in the
years ahead.  "Therefore, it is false to suggest that
Telstra's focus on costs would end at the conclusion of the
current cost reduction program," he said.

The Australian Financial Review reported today that
Mansfield told institutional investors Telstra was unlikely
to extend its current cost-reduction program past 2002.
Telstra expects to cut $650 million in costs from the
business over the next two years, with $550 million of
those savings coming this financial year.

Earlier this year it announced a program which includes
cutting 10,000 jobs, in addition to another 6,000 positions
which will go through the sale of Telstra's network design
and construction group.  Telstra chief executive officer
Ziggy Switkowski said in New York today that the company's
capital expenditure requirements were expected to fall in
2001 by $400 million. (Fairfax I.T., AAP  11-Oct-2000)


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

CHINA MOBILE: To make huge HK$242B writedown of goodwill
--------------------------------------------------------
China Mobile (H.K.) Ltd., listed arm of the nation's
leading mobile phone company, will write down about HK$242
billion on the goodwill from its acquisition of seven
networks from its parent China Mobile Communications
Corp.

The accounting move is confirmed in the company's share
offering document. The writedown represents the difference
between the purchase price of US$32.84 billion (HK$256.15
billion) and the estimated fair value of the seven
networks' underlying assets.

After the writedown, China Mobile's net asset value would
slightly increase to HK$68.72 billion from HK$61.51
billion. Total liabilities would more than double to 75.75
billion yuan from 32.23 billion yuan, putting the company
in a technical insolvent condition.

PACIFIC CENTURY CYBERWORKS: Shares fall to year's low
-----------------------------------------------------
Shares in Pacific Century CyberWorks fell below HK$8
yesterday to a year-low close amid the general slide in
technology stocks and continued speculation about the fate
of its alliance with Australia's Telstra.
CyberWorks was the most actively traded stock, recording
turnover of HK$944 million. The shares fell 5.85 per cent
to HK$7.85 after touching an intra-day low of HK$7.80.
The Australian Financial Review yesterday quoted Telstra
chairman Bob Mansfield telling a group of investors at a
Goldman Sachs briefing that the revised terms with
CyberWorks might not be announced for another week.

"We never placed a timetable on ourselves," said Telstra
spokesman Steve Wright in response to questions from
Business Post about the alliance.  "There is no deadline
and no terms have been finalised yet.  We are positive
about the proceedings with CyberWorks."

A CyberWorks spokesman also refused to comment on the
timing.  People familiar with the negotiations said the
complexity and legal aspects of the agreement made it
difficult to predict when an official signing might take
place.

However, they said negotiations were down to final detail
and a deal could be announced later this week or next week.
They said it was unlikely either side would try a last-
minute alteration of principally agreed terms.  Under the
revised deal, details of which emerged last week, Telstra
is expected to take a majority stake in the pair's regional
mobile joint venture and pay US$1 billion for CyberWorks
convertible notes in a transaction worth about US$2.5
billion.

That is an improvement in favour of Telstra. The original
deal proposed that Australia's biggest telecoms company pay
US$3 billion for a 40 per cent stake in the mobile
operation, and convertible notes which could be converted
to a 2 per cent stake in CyberWorks in April.
Telstra shares fell 3.4 per cent yesterday to close at
A$5.83.  (South China Morning Post  12-Oct-2000)


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

PT PERUSAHAAN DAGANG OMETRACO: IBRA appeals plan upholding
----------------------------------------------------------
The Indonesian Bank Restructuring Agency has filed an
appeal with the Supreme Court after a lower court ruled in
favor of PT Perusahaan Dagang Ometraco's restructuring plan
covering the equivalent of 457.5 billion rupiah in debt.

IBRA lawyer Widodo Mudjiono said Ometraco has not
demonstrated good faith intention in carrying out the
restructuring plan. He cited the last creditors' meeting at
which Ometraco failed to disclose the full extent of its
assets as an example. Additionally, he criticized the
company's offer of 15 billion rupiah in cash and the
proceeds from the sale of all the company's unpledged
properties in full settlement of creditors' claims.
Mudjiono said such terms are unfair and show a lack of good
faith.

Ometraco administrator Ken Bernardi reported last month
that Ometraco owes 457.5 billion rupiah to 12 creditors,
while its assets are valued at 56.1 billion rupiah. IBRA's
outstanding loans to Ometraco total about US$5 million plus
107 billion rupiah.


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

CHIYODA LIFE: AIG steps up with bidding interest
------------------------------------------------
American International Group (AIG) has emerged as a
potential buyer for Chiyoda Life, after the Japanese life
assurance company filed for court protection yesterday with
liabilities of 2.94 trillion yen (S$47 billion) in the
biggest post-war failure in the industry.

AIG, the largest and oldest foreign insurance company with
a presence in Japan, notified Chiyoda that it was prepared
to offer support. Its interest comes in the wake of growing
foreign inroads into Japan's insurance sector.  GE Capital
bought the healthy operations of Toho Mutual, Axa acquired
Nichidan and Artemis the assets of Nissan Mutual, since
renamed Aoba Life.

The collapse of Chiyoda was not a surprise as it had been
in difficulty for years.  It underlines the legacy of
disastrous investments by many financial companies during
the "bubble" era of inflated asset prices.  Chiyoda, which
had bad assets of 208.6 billion yen, said its aggressive
lending to real estate companies and investments in the
stock market during the late 1980s had raised concern about
its financial health, which in turn triggered a flight of
policyholders.

Chiyoda's collapse also highlights the impact of a
prolonged period of low interest rates on the life
insurance sector.  Many companies have suffered negative
spreads, or lower returns on their assets than promised to
policyholders. Chiyoda is the fifth-largest life assurer to
fail and the fourth in the past three years.

The collapse of Chiyoda came after Tokai Bank, one of its
largest shareholders, made its support conditional on
Chiyoda finding a foreign partner.  Tokai laid down the
condition last week, reflecting a growing reluctance of
banks to support ailing customers. "There is certainly a
change in attitude of the banks," said Mr Brian Waterhouse
at HSBC Securities in Tokyo. (Financial Times, Straits
Times  11-Oct-2000)

CHIYODA LIFE: S&P revises rating to 'R' from 'Bpi'
--------------------------------------------------
Standard & Poor's has revised its financial strength rating
on Chiyoda Mutual Life Insurance Co. to 'R' from single-
'Bpi' after the announcement the insurer had filed for
court protection.

Chiyoda Life's financial strength has significantly
weakened over the past several years, mainly due to
continuing asset problems which stem from poor asset
liability management, unrealized losses in both
domestic and foreign investments, and the high proportion
of nonperforming loans in the insurer's investment
portfolio. Another contributing factor was the high level
of surrenders and lapses due to eroding policyholder
confidence. This led to falling premium income, in-force
business, and assets under management.

Standard & Poor's assigned Chiyoda Life its 'Bpi' financial
strength rating based on public information or 'pi' rating
in May 1997 citing the weakness of the insurer's balance
sheet and business. An insurer rated 'R' is under
regulatory supervision owing to its financial condition.

During the regulatory supervision, the regulators may have
the power to favor one class of obligations over others or
pay some obligations and not others. The rating does not
apply to insurers subject only to nonfinancial actions such
as market conduct violations, Standard & Poor's said.
(Business Wires, CreditWire  11-Oct-2000)

CHIYODA LIFE: Moody's downgrades it
-----------------------------------
New York-based rating agency Moody's Investors Service said
on Wednesday it had downgraded failed Chiyoda Mutual Life
Insurance Co. and warned some policyholders may be affected
by the collapse of the insurer.

Moody's downgraded the insurance financial strength rating
of Japan's 12th-largest life insurer to Caa2 from Caa1
after it filed for bankruptcy protection on Monday. It
maintained its "negative" rating outlook for the
company, the agency said in a statement.

Chiyoda collapsed with liabilities of 2.9 trillion yen (27
billion dollars), to become the biggest corporate failure
in Japanese history.  The insurer had a negative net worth
of 34.3 billion yen (315 million dollars) as of September
30, 2000, Moody's said, citing Japan's Financial Services
Agency.

Moody's warned that while policyholders with death benefits
will receive full protection until March next year, other
policyholders may be affected by the collapse of the
insurer.  "Policyholders of savings-type products are, in
Moody's opinion, likely to see a reduction of guaranteed
rates," Moody's said in the statement.

The Chiyoda collapse led analysts to warn the debt-ridden
insurance industry is still haunted by the speculative
"bubble" economy.  More Japanese life insurance companies
were likely to be added to the list of victims because of
their massive debts following the "bubble" economy, which
burst in the early 1990s, they said.

"It wouldn't be a surprise if other insurers failed in the
future," said Komaji Kitamoto, a professor of insurance at
Osaka Gakuin University in western Japan.

Chiyoda was the latest victim of the prolonged Japanese
slump following the implosion of the speculative economy.
Among the casualties have been several prestigious
financial institutions, including the Long-Term Credit Bank
of Japan and Yamaichi Securities.

Chiyoda's collapse surpassed the failure of department
store retailer Sogo with liabilities of 1.9 trillion yen
(17 billion dollars) and Japan Leasing Corp.'s collapse in
September 1998 with liabilities of 2.2 trillion yen (20
billion dollars).  (Agence France Presse  11-Oct-2000)

DAIEI INC: Shaky fiscal condition weaker with resignations
----------------------------------------------------------
Prospects for Daiei, Japan's largest supermarket group,
took a dive on Tuesday after it announced the resignations
of Tadasu Toba, its president, and vice-president Kazuo
Kawa.

Mr Toba and Mr Kawa are stepping down after it emerged they
had bought shares in a subsidiary of the company when they
were closely involved in its plan to write off huge debts.
Mr Toba said: "I was concerned about our corporate image
and management of the company, so I decided to step down."

However, he denied that his share purchases constituted
insider trading.  Mr Toba has explained that he purchased
100,000 shares in Daiei OMC, a credit card company, to take
greater responsibility for the performance of group
companies.  However, the purchase was made while DOMC was
discussing a possible large write-off. Mr Toba, who was
involved in the debt decision, subsequently sold the shares
at a profit of 15.9 million yen ($147,000), which he
donated to non-profit organizations.

Daiei has also announced that chairman and founder, Isao
Nakauchi, would step down and become a special adviser. Mr
Nakauchi, who will relinquish his duties as representative
director next year, explained that his resignation was
aimed at ushering in a generational change.

Kunio Takagi, who has been seconded to Recruit, a
publishing company in which Daiei owns a stake, will return
to Daiei and is expected to assume the post of president.
The changes triggered concern that Daiei would find it
difficult to push ahead with restructuring spearheaded by
Mr Toba. The company is trying to reduce its 2.2 billion
yen in debts by 550 billion yen.

Masahiro Matsuoka, industry analyst at UBS Warburg in
Tokyo, said: "This is very discouraging news. Mr Toba was
the last messiah."

Analysts said that unless Daiei could restructure its
operations and cut its debts, it faced a bleak future. Mr
Toba's departure meant Daiei's credit rating was likely to
be lowered, said Mr Matsuoka.  Takayuki Suzuki, industry
analyst at Merrill Lynch in Tokyo, said: "The back-up of
the banks is essential for Daiei's restructuring. The
crucial point is whether the new president can win the
trust of the banks."

The company, which expanded aggressively in the past, has a
portfolio of businesses which it needs to make profitable
or sell. It owns the Daiei Hawks baseball team and a
stadium, the Fukuoka Dome, which is also losing money.
Daiei, is selling its hotels and shares in companies, such
as an affiliated supermarket chain.

Daiei's shares closed down 29 yen at a year low of 256 yen.
Separately, Yukio Nakazawa, a former vice-president of
Sogo, the department store group which filed for court
protection in July, committed suicide yesterday. Mr
Nakazawa, 74, has been targeted in damages suits filed by
Sogo, which is seeking 9.4 billion yen in compensation for
alleged inappropriate deals with affiliated companies.
(Financial Times  10-Oct-2000)

SOGO CO: Files third lawsuit against former execs
-------------------------------------------------
Osaka-based department store operator Sogo Co. has sued 19
of its former executives demanding 1.796 million yen in
damages for their decision to continue to pay dividends to
shareholders when the company was in financial trouble.

The latest suit filed with the Tokyo District Court brings
the total demands for damages against former members of
Sogo's board to some 11.25 billion yen.  According to
Tuesday's suit, former board members paid the dividends on
three occasions: as August 1993 mid-term dividends,
February 1994 end of year dividends and August 1994 mid-
term dividends.

The plaintiffs claim these payments were illegal as they
were paid when Sogo extended loans or guaranteed debts --
totaling 550 billion yen -- to group companies that had a
capital deficit of 300 billion yen, as of February 1994.
The 19 defendants include the company's former chairman,
Hiroo Mizushima, 88, and former Vice President Yukio
Nakazawa, 74, who hanged himself earlier Tuesday at his
home in Nishinomiya, Hyogo Prefecture.

Nakazawa was also named in the previous two suits. Sogo
officials said they will consult with their lawyers on
whether Nakazawa will be removed from the defendants' list.
Since late September, Sogo has filed two suits against its
former executives demanding they pay a combined 9.454
million yen to compensate for the company's losses,
allegedly caused by fictitious deals with Cho-ompa Co., a
Sogo affiliate, and a failed business project in Turkey.

The Sogo group, saddled with a debt of 1.87 trillion yen,
filed for protection from creditors with the district court
in July, and has been scaling back its operations in Japan
and abroad. (Japan Times Online 11-Oct-2000)


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

DAEHAN INVESTMENT TRUST: Cabinet approves money infusion
KOREA INVESTMENT TRUST: Cabinet approves money infusion
--------------------------------------------------------
South Korea's cabinet on Tuesday approved an economic
reform bill, clearing the way for the injection of new
state money into the restructuring of banks.

The bill on the use of 40 trillion won (36 billion dollars)
of public funds for bank reforms will be sent to parliament
for approval, the Finance and Economy Ministry said. The
bill came one day after parliament approved five economic
reform bills, which had been held up for four months due to
a political battle between President Kim Dae-Jung and
opposition leader Lee Hoi-Chang.

The opposition leader met Kim on Monday and agreed to
support the government's reform drive. Of the 40 trillion
won, the government will use 6.1 trillion won to reduce
non-performing debts and boost the capital adequacy rates
of six ailing banks -- Hanvit, Cho Hung, Korea Exchange
Bank, Kwangju, Peace and Cheju.

The govenment earmarked 9 trillion won for the
consolidation of merchant banks and 6.9 trillion for
insurance, mutual credit and finance companies and credit
cooperatives.  Korea Investment Trust and Daehan Investment
Trust will receive 5.2 trillion to repay principal and
interest on their loans.

The bills approved by parliament on Monday would help
investment trust companies draw more funds into their tax-
free funds and the insolvent Daewoo Group speed up unit
sales. (Agence France Presse  10-Oct-2000)

DAEWOO GROUP: Shareholders to sue current,former execs
------------------------------------------------------
Minor shareholders of Daewoo group subsidiaries have
decided to file class-action lawsuits against former and
current executive and staff responsible for the financial
standing of three core units, Daewoo Corp., Daewoo
Electronics and Daewoo Heavy Industries (DHI).

Group founder and former chair Kim Woo-choong will be named
in all the suits, and the accounting firms responsible for
auditing the books of these firms are also to be named.
While civic groups have spearheaded similar suits against
large firms, it is quite rare for minor shareholders to
take such action on their own initiative.

One representative of the minor shareholders said a total
of 94 individuals agreed Saturday to take the Daewoo
companies to court, and will file their suits around
October 20. The representative added that about 20-30
shareholders at Daewoo Electronics and 20 at DHI will be
among the plaintiffs.  (Digital Chosun  10-Oct-2000)

DAEWOO MOTOR: Break-up of company before sale OK'd
--------------------------------------------------
Daewoo Motor's lenders revised their auction guidelines to
allow for the breakup of Korea's No2 carmaker, aiming to
attract buyers after more than a year of trying.

The heads of Korea Development Bank (KDB), Hanvit Bank, and
three other lenders dropped their original plan to sell
Daewoo Motor as a single company at a meeting in Seoul. The
move may rekindle interest from General Motors,
DaimlerChrysler and other carmakers reluctant to buy money-
losing parts of the company.

"Possible separate sales would be the best way now," said
Good Morning Securities car industry analyst Sohn Jong Won.
" That's what potential buyers asked for earlier."

Lenders, who have set themselves a deadline of October 20
to sell the carmaker, failed to find a replacement for Ford
Motor Company, which scrapped its initial US$7 billion
(HK$54.6 billion) bid to buy the whole company. Ford
reportedly balked at taking on Daewoo's credit unit among
other debt-laden subsidiaries.

The Daewoo Group, formerly Korea's second-largest
industrial group, collapsed in July last year with debts of
as much as 89 trillion won (HK$623 billion). Investors are
concerned the failure to sell Daewoo Motor will add to the
list of scrapped asset sales, leaving banks with more non-
performing loans. Daewoo Motor Sales, the company's
distributor in Korea, fell 1.1 per cent to 2,230 won.
Ssangyong Motor, the sport-utility vehicle unit of Daewoo
Motor, fell 2.9 per cent to 1,330 won.

GM and Fiat had emerged as the most likely buyers of Daewoo
Motor after two rivals said last month they weren't
planning to bid for the carmaker. DaimlerChrysler and
Hyundai Motor withdrew as bidders for all of Daewoo,
although both have said they may consider buying part of
the company.

GM had no immediate comment to the decision to offer parts
of Daewoo Motor for sale. Fiat is still studying Daewoo
Motor for a possible joint bid with GM. Hyundai Motor
spokesman Min Hyung Joon said Korea's biggest carmaker
needs to discuss plans with DaimlerChrysler before making
any public comment.

Daewoo Motor creditors want a speedy sale because the value
of the carmaker is falling. "If buyers view a separate sale
more favourably it may be possible to sell the assets in
parts," according to Mr Choi.

Lenders have decided to transfer sale responsibility from
the restructuring committee of the Daewoo group to the main
lenders of each of the Daewoo Motor units, said Hanvit Bank
executive vice-president Kim Jong Wook. KDB will be in
charge of the company's main passenger car plants at home
and abroad, and the Daewoo Motor Sales unit.

Hanvit Bank will handle the sale of Daewoo Telecom's
autotransmission plant, while Seoul Bank will direct the
sale of Daewoo Capital, said Hanvit Bank's Mr Kim. Cho Hung
Bank will conduct the sale of Ssangyong Motor.

The most attractive assets for foreign carmakers may be
Daewoo Motor's domestic plants and sales unit. Korea,
Asia's second-biggest car market, has been all but off
limits to car imports.

Still, "acquiring all Daewoo Motor's current plants is too
much" for foreign buyers, given the size of the Korean
market and its expected stagnation by 2003, according to
Hyundai Securities car industry analyst Kim Hag Ju.
"They will probably buy plants selectively, depending on
the age of equipment and type of product."

A plant in Kunsan, west of Seoul, has modern facilities,
while another at Pupyong, nearer the capital, is older, he
said. Ssangyong Motor's plants may appeal to
DaimlerChrysler as the German-American carmaker projvided
key production technology to Ssangyong before it was bought
by Daewoo Motor in 1998.

Daewoo Capital, which provides finance to Daewoo Motor
customers, may be among the least attractive, with its
limited marketing network and unspecified loan exposure to
other Daewoo Group units, analysts said. Buyers will have
to weigh up the possibility of industrial disputes, with
some unions preparing to resist the sale of Daewoo Motors.

Workers oppose the auction of the company either as a whole
or in parts as either outcome could trigger the firing of
some staff. Daewoo Motor's labour union, which includes
10,385 members, wants the government to manage the company
until it's able to survive on its own.  (Hong Kong iMail
12-Oct-2000)

DAEWOO TELECOM: Sells off IT division
-------------------------------------
Daewoo Telecom announced Tuesday it signed a formal
contract to sell off its IT operations to Mercury Telecom,
a multinational holding firm.

Daewoo's IT operations will launch as Mercury Telecom
beginning from November 1 as the special shareholders'
meeting of the Korean firm, planned on October 25, is
expected to endorse the deal. Daewoo Telecom precedes all
12 Daewoo business group subsidiaries undergoing workouts
in the sell-off bid.

The selling price of the IT operations ranges from W330
billion to W370 billion, depending on performance this year
and next, according to Daewoo Telecom. Mercury Telecom has
been set up as a consortium, led by CVC, an investment arm
of Citigroup of the United States. (Digital Chosun 10-Oct-
2000)

HYUNDAI ELECTRONICS: Floundering in rough financial seas
--------------------------------------------------------
The frequent phrase used when talking about Hyundai
Electronics Industries (HEI), reputedly the world's largest
producer of dynamic random access memory DRAM) chips, is
"potential crisis," at least among industry analysts.

The prices of DRAM chips are falling even as its cost
structure remains relatively weak and its liquid crystal
display and communications businesses continue to incur
losses, industry sources said.  Against this background,
HEI remains hesitant about being more aggressive in
investing in facilities for next-generation products and
timid about restructuring, the industry analysts pointed
out.

According to them, the reality of the matter is that HEI is
hit hardest by falling DRAM prices since, according to
expert estimates, it costs a little more than $5 to produce
a 64 megabit chip.  As compared to this, other leading
companies, Samsung Electronics, for instance, have much
better cost structures. Samsung is believed to have a
production cost in the mid-$3 range.

"For now, prices remain above $7 and so HEI is managing
okay but the situation will get drastically worse when they
drop to the $5 range sometime around the second quarter of
next year," one analyst said.

Even worse than the semiconductor business, which is
certainly its core competence, are the LCD and
communications segments which have yet to turn a profit as
HEI had expected.  In the case of LCDs, international
prices have been falling and the situation is expected to
get much worse next year when the manufacturing facilities
of Taiwanese companies come on board.

As for communications, the cellular phone sector of the
business has been suffering from the effects on the ban on
providing subsidies for the purchase of handsets which has
killed sales.  These are poor business conditions to begin
with but many industry analysts say that the biggest
problem with HEI lies in the fact that it does not
recognize the need make future-oriented investments.

"HEI has said repeatedly that it will not build new lines
and the only investments will be on upgrading its existing
facilities and we have questions about this business
strategy," the analyst said.

In the case of Samsung Electronics, it is making trillions
of won in new investments to launch the construction of new
lines for processing lines for 12-inch wafers next year.
As for Micron Technology, which along with HEI and Samsung
are the largest DRAM producers in the world, its production
of 128M chips currently stand at 30 million per month,
three times that of the 64M units.

On the other hand, companies like Infinion, Toshiba and
Hitachi have reportedly decided that they will not be able
to lead the market for 128M chips and so are concentrating
investments on 256M processing facilities.  Amid these
rapid moves in the international marketplace, HEI has no
major investment plans, apparently due to a lack of
financial resources, among other reasons that HEI sites,
and the proportion of its 128M chip production will still
be just be 73 percent of the 64M units at the end of the
year, the industry analysts said.

One analyst said, "HEI may be one of the top two DRAM
producers at the moment but it faces the threat of losing
its status as a major player if it is not able to stay
ahead in the market for new-generation products."

According to him, HEI needs to quickly specialize on its
core competence and secure the financial resources
necessary to make the future-oriented investments.
"HEI engaged in diversification between 1996 and 1998 when
the memory semiconductor market was in deep recession but
it has to come to the realization that they are failed
investments and filter them out to focus on
semiconductors," the analyst said.

In addition, HEI needs to dispose of its stock in companies
like Maxtor, Hanaro Telecom and Onse Telecom which do not
have any affect on its semiconductor business and utilize
them for investments as well.

"If HEI fails to move quickly to restructure, make the
right investments and stay ahead of the market, there is no
saying that it will suffer the fate that hit Taiwanese and
Japanese companies which were push out of the market after
failing to make timely investments," the analyst said.
"HEI has to remember that it is under a huge debt, from the
takeover of LG Semicon last year, among other sources,
somewhere in the neighborhood of 8 trillion won, and it
must initiate the right restructuring moves to get its
finances right and make the necessary investments." (Korea
Times  10-Oct-2000)


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

PRESSCRETE HOLDINGS: Rights issue proceeds to repay debt
--------------------------------------------------------
Presscrete Holdings Ltd plans to use the net proceeds of a
one-for-one rights issue involving the issuance of 72.669-
73.588 million shares at S$0.10 each to repay debt and
provide the company with working capital. The company
estimates its net proceeds will reach S$6.90mil. Presscrete
also noted that major shareholders who collectively hold a
63 percent stake in the company have renounced their rights
to subscribe to the rights issue.


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

EYCO GROUP: Creditors' claims surge
-----------------------------------
A year after the Eyco Group of Companies was declared
insolvent by the Securities and Exchange Commission (SEC),
creditor banks of the debt-saddled appliance maker watch
their claims triple in value as they await for a workable
liquidation plan.

In a meeting with the SEC, the consortium of creditor banks
noted how its total claims against Eyco ballooned to P6.5
billion, from P4 billion in a span of a few months. The
Philippine National Bank (PNB)-led consortium said although
Eyco will be left with P3.5 billion to P4 billion to fund
its obligations to unsecured creditors, there will still
be a deficiency of P2.5 billion to completely cover the
obligations.

Eyco liquidator Edgardo Tarriela said he would need time to
verify the figures and make a re-inventory of all the
assets of the company. The SEC granted Mr. Tarriela 90 days
and a P100,000 revolving fund to conduct an inventory of
Eyco's assets, complete a liquidation plan and take custody
of all the firm's assets. (Business World  09-Oct-2000)

NATIONAL STEEL CORP.: New group eying it
----------------------------------------
An Arab-Chinese company has expressed interest in acquiring
National Steel Corp. (NSC) after the Securities and
Exchange Commission (SEC) had ordered its liquidation.

SEC Chairman Lilia R. Bautista told reporters yesterday the
group paid a courtesy call on her to reaffirm their plan to
put NSC back on track.  She said the group has already
submitted its acquisition plan to SEC-appointed liquidators
led by Monico Jacob, former head of NSC's three-member
interim receivership committee.

Bautista said that offers to resurrect the cash-strapped
steel firm from as far away as Britain and the United
States, have been received by NSC. The British group, she
said, has already visited NSC, but is yet to submit its
proposal.

NSC's liquidators have been given 60 days to submit their
liquidation plan and 30 days for the list of updated
claims. These proposals, she said, from prospective
investors have fast-tracked the liquidation process.

Lawyer Eugene Reyes told reporters that the list of updated
claims will now include interest on the loans from creditor
banks and other unsecured creditors. He added that no
creditor bank has so far filed a foreclosure case against
NSC, since such proceedings might prove costly to them.

Bautista expressed her belief in the soundness of the
agency's decision to order the liquidation of the steel
firm since it has put in perspective NSC's condition
attracting investors who can revive it and put it back on
track. The former owners of NSC, she added, can still
submit their rehabilitation plan for the steel firm to the
SEC-appointed liquidators. They are expected to bring in
their own group of investors.

After requesting the agency for a suspension of payments in
December last year, NSC found no white knight to save it
from what looked like insolvency. Hottick Investments Ltd.,
the Malaysian firm which owns 82 percent of NSC, opposed
the rehab plan apparently formulated by SEC-appointed
interim receivers. Refusing to inject funds into the cash-
strapped steel firm, Hottick tired to look for investors
who could salvage the company, but ended empty-handed.
(Philippine Star  11-Oct-2000)


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

ITALIAN-THAI DEVELOPMENT: Misses Bt3.5B interest payments
---------------------------------------------------------
Italian-Thai Development (ITD) has failed to meet the
deadline for interest payments on its 3.5 billion baht
senior bonds due today, sending the stock index plummeting
to two-year lows yesterday.

ITD has struggled to service its loans recently. On
September 29, the company announced that it was not able to
make interest and principal payments due to lenders and is
now negotiating a new debt restructuring package, Thai
Rating & Information Services (TRIS) revealed.  The firm
said its financial problems arise from low cash flow as
well as its failure to sell non-core assets as planned, all
of which has affected its liquidity.

As a result of Ital-Thai's failure to pay the undisclosed
amount of interest, TRIS downgraded twice in four days
ITD's other tranche of 3.5 billion baht bonds due in 2005
from to "BBB-" to "C" and then to "D".  TRIS earlier warned
that "there is a high possibility that ITD will request its
bond holders to adjust obligations less favorably than the
current terms."

Failure by ITD to meet its debt payments and a potential
downgrade of PTT Exploration & Production (PTTEP) in the
MSCI index dragged the Stock Exchange of Thailand (SET)
down to two-year lows again yesterday.  The SET index
closed down 4.31 points to 256.98, the lowest since October
6, 1998.

"Defaulting on interest payments of bonds by some of
Thailand's largest corporate borrowers has dampened
investor confidence," said Anuphon Sriarch, analyst at SG
Asia.

Apart from ITD dragging the market lower, according to
Anuphon, PTTEP also played a part with the broker earlier
saying that PTTEP may see its weighting in the MSCI index
reduced because of low numbers of shares free-floated by
the firm.  Morgan Stanley is considering changing the
method of its MSCI index from market capitalization to free
float.

The MSCI index is used by global fund managers to guide
their allocation of funds.  However, another analyst
disagreed with Anuphon, saying the selling of large
capitalized stocks on the SET relates more to requirements
of major mutual funds companies who are closing their
books.

The analyst at UOB, Supakorn Suchiratanavimol, said
managers of funds who are balancing their books are selling
to raise money for mutual funds redemption.  Earlier some
analysts speculated that the activities of institutional
investors such as mutual funds are slowing down, as
traditionally happens towards the year-end, as investment
analysts prepare to take long vacations before returning in
the new year to determine investment strategies for the
year ahead.

A source at KGI Securities One said the window of
opportunity for the SET is closing rapidly this year with
little good news to encourage large foreign investors to
enter the market ahead of the vacation month of December.
(Business Day  11-Oct-2000)

SAHAVIRIYA OA: Stock transfer settles debt
------------------------------------------
Sahaviriya OA has reported to the Stock Exchange of
Thailand that Ruang Khao Balanced Fund held 5,000
debentures of SVOA#1 at par value of 1,000 baht, totalling
5 million baht. But the issuer of the debentures,
Sahaviriya OA Plc., failed to make its settlement and thus
submitted its rehabilitation plan to the Central Bankruptcy
Court by SVOA Planner Co., Ltd. The plan already has been
approved by the Central Bankruptcy Court.

According to the rehabilitation plan, the Ruang Khao
Balanced Fund ("RKBF") will receive 37,545 common shares of
Sahaviriya OA Plc. at 10-baht par value to be assets of
RKBF and in the future, RKBF will receive a payment from
the sales of assets of the 3 Special Purpose Vehicles
("SPV"). RKBF has 0.0872% proportion in each SPV. SVOA
Planner Co., Ltd., indicated that the total value of assets
held in the 3 SPVs were 1,167,752.14 baht which were valued
by the independent valuer.

The Company has already submitted a detailed information of
the settlement of SVOA#1 to be common shares and the rights
on the sales of assets of the SPVs to ask for approval from
the trustee of RKBF, Bangkok Bank Plc., which was approved
on October 9.

The Ruang Khao Balanced Fund has an expense of 200 baht to
submit the Debt Settlement Form to be owner of the assets.
The shares will become assets of RKBF as other common
shares of the securities companies held by the portfolio of
RKBF, thus, there will be no additional expense for RKBF.
(The Stock Exchange of Thailand  10-Oct-2000)


S U B S C R I P T I O N  I N F O R M A T I O N

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