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

                           A S I A   P A C I F I C

           Monday, November 6, 2000, Vol. 3, No. 216

                                    Headlines


* A U S T R A L I A *

BHP: HBI liabilities cloud BHP outlook
HIH : S&P rating drops
JOHN FAIRFAX HLDGS.: Ad market blamed for share fall
LEND LEASE: Shares hit by Fox backlash


* C H I N A  &  H O N G  K O N G *

CHENGNAN COOPERATIVE: Central bank closes it
CHINA PETROL.& CHEMICAL CORP.: Swaps shares to clear debts
CHUNG SING GARMENT FACTORY: Facing winding up petition
GUANGZHOU INT'L TRUST: Creditors offered US$1B debt deal
HANCO DEVELOPMENT LTD: Facing winding up petition
HEBEI COOPERATIVE: Central bank closes it
JINTONG COOPERATIVE: Central bank closes it
NAM CHEUK ASSN.LTD: Facing winding up petition
SHUN ON COMPANY LTD: Facing winding up petition
TAOJIANG COOPERATIVE: Central bank closes it
TEAM CUBE MARKETING (HK)LTD: Facing winding up petition
XIANGZHONG COOPERATIVE: Central bank closes it
XINGHUO COOPERATIVE: Central bank closes it
YINCHENG COOPERATIVE: Central bank closes it


* I N D O N E S I A *

ASIA PULP & PAPER: Debt plan delay hurts bonds


* J A P A N *

NAGASAKIYA: Gives up rehab, liquidation begun


* K O R E A *

DAEDONG HOUSE & CONST.CO.: To be liquidated
DONG-AH CONSTRUCTION: Liquidation will strain public funds
HAIWOO CO.LTD: To be liquidated
HALLA RESOURCE CORP.: To be liquidated
HYUNDAI ENG.& CONST.CO.: To speed up reform plan
HYUNDAI ENG.& CONST.CO.: To use Sosan Farm for collateral
ILSUNG CONSTR.CO.: To be liquidated
JINRO GENERAL FOODS CO.: To be liquidated
JINRO TOTAL DISTRIB.CO.: To be liquidated
KIA INTERTRADE CORP.: To be liquidated
KOREA TUNGSTEN CO.: To be liquidated
KWANGEUN FINANCE CO.: To be liquidated
MIJU CO.LTD: To be liquidated
PEERES COSMETIC CO.: To be liquidated
SAMIK CONSTRUCTION CO.: To be liquidated
SAMSUNG COMMERCIAL VEHICLE CO.: To be liquidated
SAMSUN MOTORS INC.: To be liquidated
SHINWHA ENG.& CONST.: To be liquidated
SSANGYONG CEMENT INDUS.: Creditors to keep it going
SUKWANG CORP.: To be liquidated
SUNGSHIN CEMENT MFG.CO.: Creditors to keep it going
WOOSUNG CONST.CO.: To be liquidated
YANGYOUNG PAPER MFG.CO.: To be liquidated


* M A L A Y S I A *

HO WAH GENTING BHD.: To sell 5 more units in restructure
PUNCAK VISTA SDN BHD: Still in default on loan


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

URBAN BANK: SSS proposes to swap its shares for real estate


* S I N G A P O R E *

CAPITAL DYNASTY: Shareholders rally over project problems


* T H A I L A N D *

A.P.NATIONAL CO.: Matsushita to buy it out
BANGKOK METRO.BANK: Buyout to again be delayed
SIAM STEEL PIPE IMPORT-EXPORT: Bankruptcy filed against


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

BHP: HBI liabilities cloud BHP outlook
--------------------------------------
BHP is yet to win full market approval for its restructur-
ing plans because of concern about the size of potential
liabilities relating to its troubled hot-briquetted iron
plant at Port Hedland in Western Australia.

Analysts believe the liability could be as much as $1.1
billion should the project not reach the commercial stage.
"That probably won't happen but the timetable has been
pushed out and there is some uncertainty," one analyst said
on Friday.

The plant contributed a $78 million loss before interest,
tax, depreciation and amortisation in the three months to
September 30. BHP chief financial officer Mr Chip Goodyear
said a decision on the commerciality of the plant could
slip into January. A deadline of December had been planned
previously.  He was speaking at a briefing following
Thursday's announcement of a record $715 million profit for
the September quarter.

The market consensus on Friday was that BHP was heading in
the right direction, although some analysts believe more
effort could be made on the cost front. Margins were strong
during the quarter, particularly for coal. Analysts now
anticipate full-year profits of $2.6 billion to $2.7
billion and a few suggest the company could top $3 billion.

BHP's share price shed 5› to $19.15 on Friday, a level
analysts said represented fair value. UBS Warburg analyst
Mr Glyn Lawcock said the direction of oil prices was
another issue in the market. Mr Lawcock said analysts'
models generally had an average oil price of around $US26 a
barrel, compared with the price now of $US33.

That meant earnings forecasts were not overly optimistic,
but any significant shift in the price of crude was likely
to affect BHP's share price negatively. Offsetting these
concerns are the possibility of a 4 to 5 per cent rise in
contract prices for iron ore and roll-over prices for
coking coal used in the steel-making process.

BHP believes market expectations of a significant rise in
coking coal prices are a shade optimistic. Meanwhile, BHP's
OneSteel Ltd spin-off said on Friday it would wait for
Sweden's Electrolux to move before playing its hand in the
six-month takeover stalemate over appliances maker and
metals distributor Email Ltd. (Australian Financial Review
04-Nov-2000)

HIH : S&P rating drops
----------------------
Ratings agency Standard & Poor's delivered the much-
anticipated reassessment of HIH Insurance on Friday,
dropping the insurer's credit rating from A minus to BBB
plus.

HIH shares rose 1› to 43› after the re-rating, but
sharemarket analysts explained that the downgrading had
already been factored into the company's share price weeks
ago. The lower credit rating is expected to act as a
further constraint on HIH's ability to write business,
although analysts said any adverse effects of the
rating could be softened if the company continued to
offload parts of its business.

S&P placed HIH on credit watch in late August, following
the company's announcement that it was in talks with
several companies to sell its retail business. As part of a
sweeping restructuring of its balance sheet, HIH has in the
past few months announced the sale of most of its retail
business and its underperforming US workers' compensation
operation. Chief executive Mr Ray Williams has also said he
will resign from the helm once a suitable replacement is
found.

In a written statement, S&P said: "The ratings action on
the HIH group reflects the lower quality balance sheet
structure that has emerged as a result of the deterioration
in the FAI book of business, and poor underwriting
performance in the group's UK and US operations."

HIH's troubles really began last year when it purchased
FAI, only to find that claims on the new business's books
had blown out by $400 million. In its response to Friday's
announcement, HIH said it was in the final stages of
restructuring, which should be completed by the end of the
year.

The company's Asian operation, which made a small loss last
year but is well rated by analysts, is expected to be the
next business to be sold. In its statement, S&P said the
personal lines joint venture with German insurer Allianz
would have "little impact on the strong business position
of HIH" in the near term.

But it added that in five years time, when Allianz has the
option to buy HIH's interest in the joint venture, "HIH's
business profile will become more concentrated, focusing on
the more volatile market segments of Australian corporate
lines and UK professional indemnity and public liability."

HIH shares have more than halved in value since the middle
of September, when it unveiled a net annual profit of just
$18.4 million and announced the Allianz joint venture.
(Australian Financial Review  04-Nov-2000)

JOHN FAIRFAX HLDGS.: Ad market blamed for share fall
----------------------------------------------------
Shares in John Fairfax Holdings slumped 5 per cent
yesterday as the market lowered full-year forecasts for the
newspaper and online media group after chairman Brian
Powers warned that first-half profit was unlikely to match
last year's.

Mr Powers told the company's annual meeting its efforts
during the Olympics and the strike at The Age had wiped $25
million from earnings before interest and tax this half.
That prompted media analysts to lower full-year forecasts
by between 3 and 5 percent to about $180 million, pushing
Fairfax's shares 22 cents lower to close at $4.23.

Mr Powers said that although July and August were strong
advertising months, the market had not recovered after the
Olympics and it was difficult to tell how it would fare in
the second half.  "Our results will, as always, be
influenced by the performance of the Australian economy,"
he said, later adding that the outlook for the advertising
market was "the toughest market I have seen in eight years
to call."

Chief executive Fred Hilmer said lower-than-expected
revenue had placed a renewed focus on costs but, "we are
not looking at anything dramatic, and we are not
considering retrenchments. What we are doing is looking
very hard as vacancies occur (whether) we can effectively
use attrition, we are looking very hard at discretionary
expenditure, our ratios and capital, and we believe by
being prudent ... we can manage that balance between
revenue and costs," he said.

UBS Warburg media analyst Tony Wilson said all the big
publishing groups had experienced a decline in display
advertising. But he said analysts would view positively the
new cost focus as "at the last result there was some
concern with the rate of cost increase."

Mr Powers also told the meeting the company's online
business, f2, expected to lose a comparable amount to the
$40.7 million lost before interest and tax in 2000. He
defended f2 against claims made by its competitor, Kerry
Packer's ecorp, that ecorp's ninemsn site had greater
traffic than f2's, saying traffic levels varied among the
measurement companies.

"In pure online revenues, we are comparable to them, and in
revenues per unique user we make more money per person than
they do," he said.

Mr Powers, who was once chairman of Mr Packer's Publishing
Broadcasting, which owns ecorp, said ecorp's "gloating had
been going on for 18 to 24 months. We are much more
concerned with building that business rather than hyping
the stock in the short term, which seems to be their
primary motivation," he said.

Mr Powers said Fairfax was well placed for the expected
consolidation of the online industry and "there is a chance
we will acquire some of them for very minimal amounts."

Also yesterday, Fairfax was forced to deny United Kingdom
media speculation that it was interested in bidding for
Regional Independent Media Group. A Fairfax spokesman told
the stock exchange it declined the opportunity to pursue
the acquisition.  "Fairfax is not considering a bid for the
company," he said. (The Age  04-Nov-2000)

LEND LEASE: Shares hit by Fox backlash
--------------------------------------
Lend Lease Corp was dumped on Friday as investors reacted
to the further downgrading at Fox Studios and the prospect
of no earnings growth for three years.

Since Wednesday, when the company announced that further
provisions of around $65 million would be likely on
Sydney's Fox Studios, Lend Lease's share price has dropped
$1.73, wiping more than $700 million off the value
of the global real estate giant.  The rout gathered pace on
Friday after the incoming chairman, Professor Jill Ker
Conway, and the managing director, Mr David Higgins, told
the 800 shareholders at the annual general meeting that
earnings per share were unlikely to increase until 2002-03.

Lend Lease provisioned $80 million against Fox Studios last
year, but found after a review that further operational
changes were needed to the badly performing Backlot, and
that more provisions would be necessary. At the AGM, Mr
Higgins told shareholders that the latest provision would
once again "adversely impact the current year's result."

Also, he said that the review, which led to the latest
announcement, was not yet complete and "it is certainly too
early to assess whether these measures alone will produce a
satisfactory long-term result."

One analyst said the revelations had annoyed many people
because they had assumed that Fox Studios would be on the
mend, and because, on his numbers, the profit forecast
would have to be downgraded. But shareholders at the
meeting were remarkably restrained. Most of their questions
related to the change in directors' remuneration and the
proposal to contribute $10 million in shares to set up the
new Hornery Institute.

All the proposals passed easily, with fewer than 1 per cent
of the proxies cast against the $10 million contribution to
the Hornery Institute, despite the opposition of the
Australian Shareholders' Association and some institutions.
The maximum aggregate directors' fees - not including
consultancy payments - was increased to $US900,000 ($1.7
million) to allow for two new directors; the existing
retirement benefit was changed; and new provisions
introduced to allow directors to take their package in
shares.  Professor Ker Conway said the changes would bring
Lend Lease in line with global best practice. (Australian
Financial Review  04-Nov-2000)


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

CHENGNAN COOPERATIVE: Central bank closes it
HEBEI COOPERATIVE: Central bank closes it
JINTONG COOPERATIVE: Central bank closes it
TAOJIANG COOPERATIVE: Central bank closes it
XIANGZHONG COOPERATIVE: Central bank closes it
XINGHUO COOPERATIVE: Central bank closes it
YINCHENG COOPERATIVE: Central bank closes it
----------------------------------------------
The People's Bank of China, China's central bank, has shut
seven urban credit cooperatives in the central province of
Hunan as part of a national push to curb risk at small
financial institutions. The cooperatives ordered closed are
Yincheng, Xinghuo, Jintong, Xiangzhong, Hebei, Chengnan and
Taojiang.

"We started clearing accounts in November last year in the
spirit of the State Council's move to rectify small and
medium financial institutions, allowing dissolution," said
a clearing committee official.

Although not as spectacular as the campaign to clean up its
troubled trust sector, China has quietly shut at least 39
urban and rural credit co-operatives since 1997. It closed
16 city credit co-operatives in Guangxi, Qinghai and
Guangdong provinces in 1998 and five in the southern island
province of Hainan in 1997. In 1998, it also shuttered 18
rural credit co-operatives in Guangdong's Enping city.

The Yiyang municipal government would seek loans from the
central bank to pay off depositors of the credit co-
operatives, an official said. The seven credit co-
operatives had combined debts of 700 million yuan (about
HK$655.48 million), exceeding their assets, but no foreign
debt, the official said.

China has handled the closure of financial institutions
delicately, fearing angry depositors could launch protests.
Yesterday the People's Daily said depositors rushed to pull
their money out of six branches of the China Construction
Bank in Hebei province in June after the local government
took its business to another bank.

The government had criticised county officials responsible
for sparking the bank run and upsetting financial order,
the newspaper said, highlighting Beijing's concern over
such incidents.  China had 836 prefecture-level urban
credit co-operatives with assets of 119.80 billion yuan at
the end of last year, the central bank said.

Their deposit balance was 95.40 billion yuan and loan
balance 70 billion yuan last year. Their liabilities were
121.30 billion yuan. The People's Bank has said it would
allow viable city credit co-operatives to develop. (South
China Morning Post 04-Nov-2000)

CHINA PETROL.& CHEMICAL CORP.: Swaps shares to clear debts
----------------------------------------------------------
China Petroleum & Chemical Corporation (Sinopec) confirmed
that other than the transfer of certain shares by domestic
shareholders back to Sinopec Group Company pursuant to the
debt-equity swap agreement disclosed in its IPO prospectus,
the company is not aware of any disposal of shares in the
company.

Under the agreement, the domestic shareholders have agreed
to extinguish RMB30.15 billion (HK$28.34 billion) of debt
owed to them and waive any right to pursue Sinopec Group
Company for any claims they may have in respect of such
debt.  In return, Sinopec Group Company has transferred to
the domestic shareholders a total of about 21.1 billion
domestic shares based on a valuation of about RMB 1.43 per
share.

The domestic shareholders, China Development Bank and three
big asset management firms, are subject to the one-year
lock-up period provisions on the shares. (CN-Market News
03-Nov-2000)

CHUNG SING GARMENT FACTORY: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 10, 2001 on the petition
of Tsoi Sen Yeung for the winding up of Chung Sing Garment
Factory Limited. A notice of legal appearance must be filed
on or before January 9.

GUANGZHOU INT'L TRUST: Creditors offered US$1B debt deal
--------------------------------------------------------
The debt-ravaged fund-raising arm of the Guangzhou
municipal government, Guangzhou International Trust and
Investment Corp (Gzitic), has finalised a restructuring
proposal with its foreign creditor steering committee that
could pave the way to settling an estimated US$1 billion
debt.

The agreement, which still must be approved by the
company's more than 160 foreign creditors, provides
creditors with two repayment options: an immediate one-time
cash handout covering 50 per cent of outstanding principal,
or a 100 per cent settlement that could extend 10 years or
beyond.

The plan could produce one of the largest workouts of a
mainland-based financial institution and comes as Guangdong
province attempts to finish restructuring and liquidating
its own troubled fund-raising arms. On Tuesday, creditors
to bankrupt Guangdong International Trust and Investment
Corp met for the third time to approve a liquidation plan
that would begin paying off 21.1 billion yuan (about
HK$19.76 billion).

On the same day, Guangdong Enterprise Holdings announced
plans to offer debt securities as part of its own
complicated restructuring, involving settlement of about
US$6 billion in liabilities.  The Gzitic restructuring
proposal also allows the Guangzhou government to claim it
has fulfilled its promise to fully repay obligations of its
troubled financial arm, rather than allowing it to go
bankrupt.

Funding for the Gzitic restructuring is to be provided
mainly through a cash allocation from the municipal
government but the company also intends to liquidate assets
to help meet about 20 per cent of its obligations. Many of
those assets are in the form of real estate and company
receivables and are expected to attract low prices. An
informal poll by the company's foreign creditor steering
company indicated a majority of creditors would take the
one-time 50 per cent payout.

"We'll probably take the cash because there is less risk,"
explained one Hong Kong-based banker with an Asian bank.

The 10-year 100 per cent repayment option holds its share
of drawbacks. It guarantees repayment of only 70 per cent
of the principal, without accrued or outstanding interest,
over a 10-year period in equal annual instalments. Gzitic
agreed to provide the remaining 30 per cent in a one-time
payment at the end of that period, with interest payable at
1 per cent per annum.

The company, however, is also holding out a bone to
creditors who choose the long-term plan. For these
creditors, Gzitic may convert the 30 percent outstanding
portion into instruments linked to a new joint venture
commercial bank to be established by Gzitic and the
Guangzhou government.

"Creditors that are in it for the long haul are betting on
a new commercial bank," said Milton Leung of Standard
Chartered Bank, which is the foreign creditor liaison bank.
"They are hoping that out of the ashes will rise a
phoenix."

Those familiar with the deal also said that by selecting
the full repayment option, some creditor banks may avoid
making provisions on their troubled loans. Ted Osborn, a
partner at PricewaterhouseCoopers, Gzitic's financial
adviser, said banks should be more than satisfied with the
deal under the circumstances.

"Gzitic creditors are being provided with a much greater
return than what they would get under a liquidation
scenario," he said.

Creditors have two weeks to respond to the proposal.
Following their acceptance, the Guangzhou government, the
People's Bank of China and the State Administration of
Foreign Exchange must also provide their approvals. (South
China Morning Post  04-Nov-2000)

HANCO DEVELOPMENT LTD: Facing winding up petition
-------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 9, 2001 on the petition
of Luk Pik Yan for the winding up of Hanco Development
Limited. A notice of legal appearance must be filed on or
before January 8.

NAM CHEUK ASSN.LTD: Facing winding up petition
----------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 10, 2001 on the petition
of Wu Siu Lin for the winding up of Nam Cheuk Association
Limited. A notice of legal appearance must be filed on or
before January 9.

SHUN ON COMPANY LTD: Facing winding up petition
-----------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 6 on the petition of
Betty June Yuen, Eddie Hong-Ning Yuen, Colleen Kar Yin
Yuen, Bernadette Kwok-Wah Yuen, Paul Fong King Wah and Mary
Kar Pik Li for the winding up of Shun On Company Limited. A
notice of legal appearance must be filed on or before
December 5.

TEAM CUBE MARKETING (HK)LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 9, 2001 on the petition
of Rainfield Consumer Products Limited for the winding up
of Team Cube Marketing (Hong Kong) Limited. A notice of
legal appearance must be filed on or before January 8.


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

ASIA PULP & PAPER: Debt plan delay hurts bonds
----------------------------------------------
Asia Pulp & Paper's (PAP) silence over a plan to
restructure part of its huge $10 billion debt to head off a
funding crunch has raised fears that the company may not
move ahead with the deal, according to some analysts.

Singapore-based APP's bond prices have fallen sharply this
year on worries the company's paper businesses in Indonesia
and China aren't making enough cash to repay $2 billion in
debt coming due before the end of next year. APP's plan to
exchange $3.1 billion of notes for new bonds, and some
cash, which it outlined in September, produced a momentary
pause in the fall in its bond prices.

The plan would have pushed back repayment periods to 2005,
relieving immediate funding difficulties. But since then,
APP has made no mention of the exchange, fueling investor
concern the company doesn't have enough spare cash for the
plan, and leading to calls for the company to sell non-core
businesses to bring down its debt.

"APP bond prices have come down since August amid rumors
they're not going to go ahead with the exchange," said
Imogine Baker, a credit analyst at Barclays Capital in Hong
Kong.

Concern over APP's high borrowing to fund expansion in
recent years has forced the company to offer yields of
around 25% to attract investors to rollover debt that has
come due this year. Ballooning interest costs on existing
debt, and rising pulp prices, have eaten into revenues,
adding to concern over the company's short-term funding
structure.

Some of APP's 12 actively traded debt issues are now
trading as low as 60% down from original issue prices. Many
of the bonds, all of which are distressed debt because of
Indonesia's junk sovereign rating, were trading down only
30% at the start of the year.  Even with a successful
restructuring, APP's bonds won't see a sustained
recovery unless the company reduces its debt by selling
non-core assets, analysts say.

Although the exchange plan would reduce immediate funding
difficulties, it would only postpone the problem, eating
into future revenues.  Most of APP's operations are in
Indonesia, where it has two Jakarta-listed subsidiaries -
PT Indah Kiat Pulp & Paper (P.IKT) and PT Pabrik Kertas
Tjiwi Kimia (P.PKT).

That makes APP one of a very few Indonesia-linked companies
to remain active in international bond markets. Indah
Kiat's shares have dropped recently on the local bourse on
concerns the company's revenues will be siphoned off to
repay the parent's debt. The stock closed Thursday at 1,000
rupiah ($1=IDR9,100), down from IDR1,165 in September when
the bond exchange scheme was outlined.

Analysts say the company should protect its core businesses
such as Indah Kiat, selling off peripheral operations.
These include power plants in China, chemical plants, and
packaging businesses.  "They owe too much money and they
don't have enough cash-flow, so they have to divest non-
core assets," said a foreign credit analyst, who asked not
to be named.

In the first six months of this year, APP had negative cash
flows of about $15 million due to the high cost of
servicing debt, and the jump in the price of pulp, the
company's main raw material for producing paper.  But
Indonesia's Wijaya family, which controls APP, seems
unwilling to sell assets at current low prices. Indonesian
asset prices have been driven down due to political and
social instability this year, and a slower-than-expected
economic recovery.

"Long-hoped-for asset sales remain just that," said
Barclays Capital's Baker.

APP says it has $1.4 billion in spare cash, but analysts
question how much of this total the company can get its
hands on now. Much off the cash is tied up in time
deposits, or with Bank Internasional Indonesia, a bank
closely connected with the Wijaya family.

The company's slow progress in raising cash from asset
sales has hurt its New York listed stock price. Plans to
invest a further $1 billion in its Malaysian paper joint-
venture - although shelved for the time being - have
further added to concerns.

APP's American depository shares plunged 61% to an all-time
low of $1 per share a few days after it announced the bond
exchange plan in September, before rebounding to end at
$1.56 - down 39% on the day. At the close Thursday in New
York, the shares were at $1.625.

Still, credit analysts say APP has a number of solid
businesses, and its bonds might offer a good bet at current
low prices for investors that aren't adverse to risk.
With debt of cigarette maker PT Hanjaya Mandala Sampoerna
(P.HMS) - one of the few other internationally traded
Indonesian bonds - currently trading at only about 25%
below original issue price, APP paper is beginning to look
attractive, the foreign analyst said. (Indonesian Daily
News On Line  03-Nov-2000)


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

NAGASAKIYA: Gives up rehab, liquidation begun
---------------------------------------------
Having given up its rehabilitation efforts, failed Kyoto-
based confectioner Nagasakiya Co. has started a liquidation
process.

Nagasakiya had filed for court protection from creditors
under the corporate rehabilitation law last July. But
according to company officials, it decided to accept
business liquidation after failing to find a sponsor to
back its rehabilitation. Nagasakiya fired all employees
last Tuesday and halted its operations Wednesday.


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

DAEDONG HOUSE & CONST.CO.: To be liquidated
HAIWOO CO.LTD: To be liquidated
HALLA RESOURCE CORP.: To be liquidated
ILSUNG CONSTR.CO.: To be liquidated
JINRO GENERAL FOODS CO.: To be liquidated
JINRO TOTAL DISTRIB.CO.: To be liquidated
KIA INTERTRADE CORP.: To be liquidated
KOREA TUNGSTEN CO.: To be liquidated
KWANGEUN FINANCE CO.: To be liquidated
MIJU CO.LTD: To be liquidated
PEERES COSMETIC CO.: To be liquidated
SAMIK CONSTRUCTION CO.: To be liquidated
SAMSUNG COMMERCIAL VEHICLE CO.: To be liquidated
SAMSUN MOTORS INC.: To be liquidated
SHINWHA ENG.& CONST.: To be liquidated
SUKWANG CORP.: To be liquidated
WOOSUNG CONST.CO.: To be liquidated
YANGYOUNG PAPER MFG.CO.: To be liquidated
------------------------------------------------
Twenty-nine South Korean firms will be liquidated or
forcibly put under court receivership, according to a
number of creditor banks. The 18 companies to be liquidated
are: Kwangeun Finance Co. Ltd., Kia Intertrade Corp.,
Samsung Commercial Vehicle Co. Ltd., Yangyoung Paper
Manufacturing Co. Ltd., Halla Resource Corp., Haiwoo Co.
Ltd., Daedong Housing & Construction Co. Ltd., Korea
Tungsten Co. Ltd., Miju Co. Ltd., Samsung Motors Inc.,
Peeres Cosmetic Co. Ltd., Samik Construction Co. Ltd.,
Sukwang Corp., Woosung Construction Co. Ltd., Shinwha
Engineering & Construction Co. Ltd., Ilsung Construction
Co. Ltd., Jinro General Foods Co. Ltd. and Jinro Total
Distribution Co. Ltd.

Another 11 companies are to be placed under court
receiverships. They are: Dongbo Construction Co., Chonggu
Housing Construction Co. Ltd., The Korea Express Co. Ltd.,
Dongyang Steel Pipe Co. Ltd., Taehwa Shopping Co. Ltd.,
Segae Trading Co., Woobang Housing & Construction Co. Ltd.,
Haitai International Inc., Dong-Ah Construction Industrial
Co. Ltd., Seo-han Engineering & Construction Co. Ltd. and
Youngnam Ilbo.

Korea Exchange Bank said creditor banks had yet to reach a
conclusion on whether they would keep afloat Hyundai
Engineering and Construction Co.

DONG-AH CONSTRUCTION: Liquidation will strain public funds
----------------------------------------------------------
Liquidations announced Friday will require the injection of
an additional W1 trillion in public funds into the banking
sector to cover the resulting increase in loan loss
provisions.

Banking industry observers said Friday that each bank would
have to increase its loan loss provision by anywhere
between W100-400 billion as a result of losses from the
liquidations. The liquidation of Dong-Ah Construction Ind.,
for instance, is expected to call for an increase of W250
billion in the loan loss provisions of its creditor banks.

Its largest creditor, Seoul Bank, will have to add W120
billion to its loan loss reserves; Korea Exchange Bank will
have too make an increase of W59 billion; and Hanvit Bank,
W24 billion. The government had originally projected that
W6.1 trillion would be required to cover the non-performing
loans of troubled banks, but following the announcement of
the liquidations on Friday, industry analysts estimated
that the total amount would actually be about W1 trillion
more. (Digital Chosun  04-Nov-2000)

HYUNDAI ENG.& CONST.CO.: To speed up reform plan
------------------------------------------------
Hyundai Engineering & Construction Co.(HEC), Hyundai
Group's construction unit,  is scrambling to speed up
reform plans in a move to appease creditor banks, but the
fate of the company remains uncertain.

South Korea's largest construction company, HEC said
Thursday that it raised 38 billion won ($33.4 million) by
selling a 15% stake in Hyundai Merchant Marine Co. to an
affiliated firm, Hyundai Elevator Co. The move was part of
the construction firm's pledge to its creditors to raise
1.6 trillion won by the year end to improve its financial
status.

The construction company defaulted on 22.4 billion won of
commercial paper on Monday and barely managed to catch up
with payments on Tuesday, leading to calls for faster
reform from bankers.  A new reform plan from Hyundai
Engineering is expected Friday, and it needs to be strong
enough to convince skeptical bankers that the company is
truly committed to reform.

"The matter of Hyundai's survival depends entirely on
Hyundai," said Finance Minister Jin Nyum. "The company has
been getting much criticism from the creditors and
government that our reform plans are not up to speed,"
said Park Jong Kil, a deputy manager at Hyundai Engineer-
ing. We hope to boost confidence."

The company said it is also planning to sell a large ranch
to the Ministry of Agriculture and Forestry to raise a
further 300 billion won. It is unclear if the Chung family,
which founded Hyundai Group, will contribute its own assets
to help the construction concern.

Hyundai Engineering's creditors are scheduled to meet
Friday to discuss the plan and decide whether to continue
support for the company or push it into a debt restructur-
ing program or even bankruptcy proceedings. An official at
Korea Exchange Bank said creditors will announce their
position on the issue Friday.

The decision could have far-reaching implications for the
entire Hyundai Group, the country's largest conglomerate,
because it is possible that other Hyundai affiliates may be
affected by the fate of Hyundai Engineering. What happens
to the company likely will also weigh on investor and
banker sentiment toward other Korean companies.

The pressure on Hyundai Engineering is part of a greater
effort by the banks and government to push ahead with
corporate reform. Banks will unveil Friday a list of
nonviable companies that will no longer receive new
financing or debt rollovers. This is expected to coerce
management to sell, merge or liquidate the operations.

Troubles at the construction firm started in May, forcing
management to seek new loans and debt rollovers from
creditors in return for promises to sell assets. But some
investors and creditors doubted that the company was
serious about executing its plans, prompting Hyundai
Engineering to come up with four different reform
proposals. (The Asian Wall Street Journal 03-Nov-2000)

HYUNDAI ENG.& CONST.CO.: To use Sosan Farm for collateral
---------------------------------------------------------
Hyundai Engineering and Construction will use its
mammoth farm in Sosan as collateral to improve its cashflow
in the aftermath of its near-default Monday.

According to company officials, the farm, whose purpose is
limited to farming by law, should be sufficient to secure
an additional financing of about 300 billion won.

"With the government refusing to change the purpose of the
farmland, the only alternative we have is to use it as
collateral to secure new financing," one official said.

Under the circumstances, he said, it would be difficult to
sell the farmland or issue asset-backed securities (ABS) at
a time when Hyundai Construction obviously needs additional
financing.

"By using the Sosan Farm as collateral, we can avoid
selling it at below market prices. We have invested some
700 billion won in setting up the farmland and we simply
cannot sell it at anything less than what it is actually
worth," the official said.

Hyundai created the Sosan Farm back in the late 1970s when
there was an abundance of idle manpower and heavy equipment
returning from years of construction boom in the Middle
East. Another similar case was that of Dong Ah Construction
Industrial in Kimpo, the entire lot of which the government
bought at 650 billion won, which was when sold early last
year the set market price.

With the purpose of the farmland, which was created through
reclamation, being limited to agriculture and the farming
of herbs, Hyundai has consistently asked for a change since
its productivity has proven to be too low.

"We believe that the purpose of the farmland will be
changed eventually and selling it off at below market
prices now will leave Hyundai with a significant loss," the
official.

Still, it was not immediately clear if creditors will
recognize the Sosan Farm as a collateral worth 300 billion
since the government has most recently proposed a price of
no more than 220 billion won. (Korea Times  03-Nov-2000)

SSANGYONG CEMENT INDUS.: Creditors to keep it going
SUNGSHIN CEMENT MFG.CO.: Creditors to keep it going
---------------------------------------------------
Cho Hung Bank other creditors have agreed to keep Ssangyong
Cement Industrial Co Ltd as a going-concern. Creditors
representing 95.6 percent of loans voted to classify the
company as a viable one, saying they appreciated the
company's self-rescue efforts, including recent injections
of foreign capital.

Creditors also made a decision to keep Sungshin Cement
Manufacturing Co. afloat, pointing to its brisk sales and
convincing self-rescue plan.


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

HO WAH GENTING BHD.: To sell 5 more units in restructure
--------------------------------------------------------
Ho Wah Genting Bhd, manufacturer of moulded power supply
cord sets and electronic equipment, intends to dispose of
five more subsidiaries by year end in order to complete its
restructuring and continue focusing on its new core
business - cable and wire manufacturing.

The subsidiaries involved handle transport, travel and
financial services. Whereas the group originally had 14
units, nine of them have been sold already. Ho Wah Genting
chief executive officer Goh Sin Huat confirmed the company
was busy identifying buyers for the subsidiaries. He added
that the firm is confident that sales agreements can be
reached by the end of the year.

Previously, Ho Wah Genting underwent a restructuring
exercise involving a RM1 to 30 sen capital reduction and
the acquisition of Kitron Sdn Bhd in a share swap. This
transaction actually resulted in a reverse takeover by
Kitron Holdings Sdn Bhd, the investment holding company of
Kitron.

Goh said Ho Wah Genting's performance for its current
financial year to Dec 31 would be better than the previous
year's. He said the company was now tapping the US for its
products, a market which is said to be worth US$1 billion.
He added that any slowdown in the US economy might not have
a significant impact on the demand for its products as they
were essential goods. The US is Ho Wah Genting's principal
market for products such as moulded power supply cord sets,
wires and cables, and lamps.

PUNCAK VISTA SDN BHD: Still in default on loan
----------------------------------------------
Puncak Vista Sdn Bhd (PVSB), a company 30-percent owned by
United Engineers (Malaysia) Bhd, is still in default on
payment of principal and interest on a 363 million ringgit
syndicated term loan and convertible bank guarantee
facility and its 30 million ringgit revolving credit
facility.

In a statement to the Kuala Lumpur Stock Exchange, United
Engineers affirmed that PVSB had fully utilized its term-
loan facility and a total of 6.115 million ringgit of its
revolving credit facility. Both facilities are secured
against 32.3 acres of PVSB land in Kuala Lumpur and
a debenture covering all of the assets of PVSB.


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

URBAN BANK: SSS proposes to swap its shares for real estate
-----------------------------------------------------------
Social Security System (SSS) chairman and president Carlos
Arellano confirms the agency will pursue a plan to exchange
some P500 million worth of Urban Bank shares with the
bank's properties.

Arellano's statement came after Bank of Commerce
(Bancommerce) president Raul De Mesa declared that as an
appointed rehabilitator of Urban Bank, they will not adopt
a system which will allow creditors/depositors of Urban to
get properties from the bank before the rehabilitation plan
is approved. De Mesa said they expect the rehabilitation
plan to be approved by the creditors and directors of Urban
Bank by end-November and be implemented by early December
this year.

But Arellano argued that this arrangement was agreed upon
before the SSS decided to keep their equities in Urban
Bank. The SSS chief said they want the properties swapped
"as soon as possible."

"We are not holding back our decision to exchange our
shares for properties. We expect it to happen as soon as
possible," Arellano said.

Arellano said Bancommerce, being the chosen rehabilitator
of Urban Bank should be able to consider their offer to
exchange SSS's equity into properties. SSS has about P200-
million worth of equity in Urban Bank. Arellano said the
pension fund is willing to add additional P300 million to
swap for a P500-million worth of properties.

SSS is particularly eyeing a portion of the Urban Bank
Plaza located in Buendia, Makati. At present, there are
about 30 floors in the said building that are left unsold.
However, De Mesa said all of the properties of Urban Bank
will be eventually disposed of, once the rehabilitation
plan is approved and implemented this December.

According to De Mesa, these properties will be offered to
the creditors and depositors of Urban Bank at a
rediscounted value. De Mesa said this purchase plan, will
be offer simultaneously with all the creditors and
depositors of Urban Bank.  Aside from SSS, other major
creditors and depositors of Urban Bank are San Miguel Corp.
and Petron Corp. (Philippine Star  04-Nov-2000)


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

CAPITAL DYNASTY: Shareholders rally over project problems
---------------------------------------------------------
A group of Singaporeans who bought into what was touted as
the "largest shopping centre in Johor Baru" are rallying
other buyers to pressure the developer to resolve a host of
problems plaguing the project.

The group is trying to gather all the 120 Singapore buyers
who, in 1994, bought retail units in the Kemayan City
project developed by Capital Dynasty, a subsidiary of Kuala
Lumpur Stock Exchange-listed Parit Perak Holdings.  The
group numbers 40 so far, and has contacted the developer
over a host of problems -- including the fact the shopping
mall has yet to open -- but says it has achieved little
success.

A spokesman for the group, Ms Lynne Lee, said they would
take the matter to court if necessary.  Problems began in
1997 when the project was scheduled for completion. As a
result of the developer's debts, the contractors threatened
to take winding-up action against Capital Dynasty, and
construction was halted.

After the developer offered property to the contractors as
debt settlement, work resumed and the project was completed
in February last year.  Buyers were instructed to take
vacant possession of their units, and progress billings for
the remaining 10 per cent of the purchase price were
issued.

But despite having paid the purchase price in full, some
buyers have not received the Letter of Disclaimer from the
financial institution which granted a loan to the
developer, using the Kemayan City project as collateral.
The buyers also said the developer imposed maintenance and
service charges on them even though the shopping mall had
not opened for business.  And they claimed the developer
refused to open up the shopping mall despite obtaining the
occupation permit.

"The construction stopped with the shopping mall," said Ms.
Lee. "It was supposed to also include three office towers
and a hotel, but we haven't seen any sign of either
development yet."

The project manager for Kemayan City, Mr David Wong,
reiterated to The Straits Times what he claimed he had told
the Singapore group: "Some of the buyers have not received
their letter of disclaimers simply because the developers,
who are supposed to pay 5 per cent of the redemption
amount, have not been able to raise the money."

He estimated the developer owes its creditor, Malaysia
Building Society, RM150 million (S$69 million).  On the
claim by the buyers that the developers have refused to
open the shopping mall despite being granted the
Certificate of Fitness (the equivalent of a Temporary
Occupation Permit), he said: "If they want to open for
business, they can. But if they expect an official launch,
that's not going to happen until we get the anchor
tenants."

Parit Perak is putting together a debt restructuring plan.
It incurred an unaudited net loss of RM47.9 million for the
year ended June 30.  Singapore buyers can contact Ms Lee on
348-3511 or Madam Ong Bee Lan on 553-3022. (Straits Times
04-Nov-200)


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

A.P.NATIONAL CO.: Matsushita to buy it out
------------------------------------------
Japan's Matsushita Electric Industrial Co. has agreed with
business group A.P. Holdings of Thailand to buy out their
financially stuggling joint home-appliance venture A.P.
National Co.  Additionally, Matsushita will buy new shares
to be issued by the Thai venture, planning to revive the
company as an export plant by renewing its production
facilities for refrigerators and washing machines.

A.P. National, which mainly has targeted the Thai market,
has been struggling due to accumulated losses,
notwithstanding an additional investment from a Singaporean
subsidiary of Matsushita. Recently the Singaporean
affiliate filed suit in the Thai bankruptcy court to begin
corporate rehabilitation. A.P. Holdings initially objected
to the move, but the acquisition of its stake has brought
reconciliation.

BANGKOK METRO.BANK: Buyout to again be delayed
----------------------------------------------
The buyout of Bangkok Metropolitan Bank (BMB) will again be
delayed, as Hongkong Shanghai Banking Corporation (HSBC)
has proposed additional conditions involving tax issues,
authorities said.

The November 20 signing agreement will probably happen a
little later than scheduled, said Sathit Limpongphan,
director of the Fiscal Economic Policy Office, and a member
of the Financial Institutions Development Fund (FIDF), the
state's financial rescue arm.  HSBC has asked for more
financial assistance from the FIDF to help ease the
tax burden resulting from the sale, he said.

The FIDF turned down the request, saying that such a move
would increase the taxpayers' burden, he said without
elaborating. But the deal is not in danger of collapsing
even if the issues cannot be resolved, as the government
has already approved it, he added.

Meanwhile, Sathit said the FIDF reached an agreement with
HSBC that would allow its parent company to maintain US$5
billion more (Bt218.34 billion) in assets than in
liabilities instead of serving as a guarantor for the $400
million in promissory notes to be issued as part of the
buyout.  If the difference falls below $5 billion, HSBC
would be given 45 days to meet the requirement again, he
said. If it cannot meet the requirement after 45 days, the
FIDF would be allowed to cash the promissory notes, he
said.

As of the end of September, BMB was saddled with Bt107.3
billion in non-performing loans, or 58.67 per cent of its
total lending. (The Nation  04-Nov-2000)

SIAM STEEL PIPE IMPORT-EXPORT: Bankruptcy filed against
-------------------------------------------------------
Standard Chartered Nakornthon Bank has filed a bankruptcy
suit against Siam Steel Pipe Import-Export Co (SSP) and
tycoon Somsak Leesawastrakul as loan guarantor for failing
to repay an 83-million-baht debt.

SSP and Mr Somsak claimed that the bank should have pursued
debt recovery through the Civil Court, but instead had
chosen to file in the Central Bankruptcy Court, damaging
their reputations.  The bank said in its court statement
that SSP had borrowed overdraft loans worth a total of
14.61 million baht from the bank, and had not honoured the
loan conditions.

It said the company also owed the bank 8.14 million baht in
the form of promissory notes, and another 60.03 million
baht in discounted cheques. In total, the company owed the
bank 83.17 million baht. The loans were guaranteed by Mr
Somsak, Somdej Leesawastrakul and Sombat Leesawastrakul.

The defendants did not repay the overdue debts despite
repeated requests, the bank said. The case is the third
bankruptcy suit filed against Mr Somsak and the SSP
Group, which he chairs.  Earlier, one of his business
partners in HEI Co had filed a bankruptcy suit against Mr
Somsak.

The claim alleged that Mr Somsak had promised his
partners that HEI Co would be able to undertake an
independent power plant project that would be commercially
viable. His promises had attracted several investors. The
power project never got started and the lawsuit resulted.
However, the court dismissed the suit.

Siam Commercial Bank also filed a bankruptcy suit against
Mr Somsak and Bangkok Water Resources Co, an SSP
subsidiary, but an out-of-court settlement was reached.
(Bangkok Post  04-Nov-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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