TCRAP_Public/001108.MBX      T R O U B L E D   C O M P A N Y   R E P O R T E R

                              A S I A   P A C I F I C

           Wednesday, November 8, 2000, Vol. 3, No. 218


* A U S T R A L I A *

JOHN FAIRFAX HOLDINGS: Shares sink on profit warning
LEND LEASE CORP.: Expected US writedown drops stock

* C H I N A  &  H O N G  K O N G *

GUANGDONG ENTERPRISES: Lenders back revamp
GUANDONG ENTERPRISES: Creditors 25% return at best
NEW WORLD DEVELOPMENT: Debt cut to be delayed

* I N D O N E S I A *

GUANGDONG ENTERPRISES: Lenders back revamp
PT PELANGI INDAH CANINDO: Reaches debt pact with creditors
SALIM GROUP: Oleochemical assets sold off

* J A P A N *

CHOU-MITSUI TRUST: Posts losses on securities portfolios
DAI-ICHI KANGYO BANK: Posts losses on securities portfolios
DAIWA BANK: Posts losses on securities portfolios
FUJI BANK: Posts losses on securities portfolios
INDUST.BANK OF JAPAN: Posts losses on securities portfolios
SAKURA BANK: Posts losses on securities portfolios
SANWA BANK: Posts losses on securities portfolios
SUMITOMO BANK: Posts losses on securities portfolios

* K O R E A *

DAEWOO MOTOR: Banks threaten to withhold loans
DAEWOO MOTOR: Union becoming obstacle to cutbacks
DAEWOO MOTOR: KCCI head calls for its sale
HYUNDAI INVESTMENT TRUST: Investors pulling funds out
IL SUNG CONSTRUCTION CO.: Liquidation set aside
KOREA EXPRESS CO.: Court approves debt-asset freeze
SAMSUNG ELECTRO-MECHANICS: Portugeese unit incurs losses

* M A L A Y S I A *

MCSB SYSTEMS(M)BHD: Posts its 6th annual loss

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

SAN CARLOS MILLING CO.: Its acquisition is delayed

* T H A I L A N D *



JOHN FAIRFAX HOLDINGS: Shares sink on profit warning
Shares in newspaper publisher John Fairfax Holdings fell to
their lowest level in almost a year after Friday's first-
half profit warning by the chairman, Mr Brian Powers.

The warning prompted some brokers to downgrade profit
forecasts for the publisher of the Herald. At the same
time, some decided to raise profit estimates for Publishing
& Broadcasting, which in contrast to Fairfax was more
confident about its outlook.

Fairfax shares fell 20.5c to a near 12-month low of $4.01
before finishing at $4.03, with more than 7.7 million
shares changing hands. PBL shares rose 25c to $13.70 with
only 385,000 shares traded. Some fund managers have been
taking advantage of the Fairfax share price drop, with
Perpetual Investments increasing its shareholding from
about 7.7 per cent in mid-September to about 10 per cent at

JB Were & Son downgraded its forecast of Fairfax's profit
forecast by 4.5 per cent for the year to June 2001 to
$174.8 million, which is still above the 1999-00 pre-
abnormal net profit of $168.7 million. JB Were upgraded its
forecast for PBL earnings for the year by 4.5 per cent to
$331.5 million as it maintained its recommendation of a
"hold" on John Fairfax and "long-term buy" on PBL.

Merrill Lynch downgraded its Fairfax net profit forecast
for 2001 to $169.3 million, and cut its valuation to $5
from $5.50 previously, but maintained its "accumulate"
recommendation. Credit Suisse First Boston also cut its
estimate by $8 million to $175 million.  It said that
Fairfax's share of the employment classified market would
be at risk in the event of an economic downturn.

Fund managers, however, said that the $25 million lost at
the earnings before interest, tax, depreciation and
amortisation (EBITDA) line for the first half would be
difficult to recover during the second half. Given "the
expected slowdown in economic growth and the very strong
June 2000 period, we struggle to see substantial growth in
the June 2001 half", JB Were said in a research note to

Fund managers said the PBL earnings upgrade was driven by
higher volumes and better margins at its Crown casino where
the poker machine market was strong, which more than made
up for the $7 million of increased costs due to higher
paper prices on its magazine division, ACP.

PBL is trading on a multiple of 27 times earnings forecast
for this financial year, though little if any growth is
seen from its magazine division, while its casino
operations traditionally trade on about 10 times earnings,
leaving its Nine Network and its investment in Internet
group ecorp to trade on multiples that are well above the
market average of about 17 times.

Fairfax is trading at about 17 times forecast earnings for
2001. One fund manager said newspaper publishers did not
have the same flexibility to manage a slowdown in
advertising as TV operators, because publishers usually had
higher fixed costs. (Sydney Morning Herald  07-Nov-2000)

LEND LEASE CORP.: Expected US writedown drops stock
The shares of Lend Lease Corp. dived again yesterday on the
prospect of another writedown, down 45c to $20.40, and they
have now lost close to $3 a share in the past week and a

Lend Lease faces another setback in its bid to win back
investor favour since the June sale of MLC, after
foreshadowing a writedown of its 27 percent investment in
US Internet coupon shopping company

Provider of online marketing services for retailers such as
coupons and a rewards program, last month
announced a 245 percent rise in revenue for the September
quarter but a deepening loss of $8.5 million, compared with
$4.7 million in the previous corresponding period. Stock-
broking analysts expect Lend Lease to shave its book
valuation on its 27 per cent holding when it reports its
result for the half to December.

Based on the trading price of Coolsavings on the Nasdaq,
which has been volatile, Lend Lease would write its
investment down by $10 million to $11 million. A spokesman
for Lend Lease, Mr Dick Morath, said the company's entry
price of $US2.59 a share, based on Lend Lease's $US18.5
million investment, compared with Friday's close of $US1.69

He said that Coolsavings' was performing ahead of expecta-
tions on the revenue line and it had been caught up in the
correction of technology shares. Lend Lease has two non-
executive representatives on the Coolsavings board, Ms
Lynette Mayne and Mr Albert Aiello. Mr Morath said Lend
Lease remained committed to the business, which fitted with
Lend Lease's international expertise in developing and
managing shopping centres.

"We have got to have involvement and be able to see what
happens on the Internet front," Mr Morath said. "The way we
see this emerging is as a complementary thing, not a
competitive thing. This is something we want to be involved
in, so we know what's happening."

Coolsavings floated in May at $US7 share but has been on a
downhill run ever since, like much of the US Internet
sector. But the prospect of a writedown had added to
analysts' worries after last week's additional $65 million
writedown of the Moore Park Fox Studios project at the

Lend Lease also flagged at last week's annual general
meeting that it would remain in a transitional period of 12
to 18 months that would not see a pick-up in earnings per
share in the year to June 2003. Prior to this year, Lend
Lease had delivered more than 20 years of consecutive
profit rises. But the loss of cash-cow MLC, sold to
National Australia Bank for $4.56 billion, means Lend
Lease's property funds management and development
businesses are under pressure to finally pay their way.
(Sydney Morning Herald  07-Nov-2000)

C H I N A  &  H O N G  K O N G

GUANGDONG ENTERPRISES: Lenders back revamp
Bank creditors have supported a restructuring plan for the
troubled Guangdong Enterprises (GDE) Group, the flagship of
the Guangdong provincial government, and its sister company
Nam Yue (Group).

At a creditors meeting yesterday, presentations were made
by Standard Chartered Bank, the liaison bank for the GDE
and Nam Yue Steering Committees, as well as by
PriceWaterhouseCoopers and Allen & Overy, the financial and
legal advisers to the banks. GDE announced in December 1998
it would be revamped.GDE stopped paying principal on its
debt last year.

A statement issued by the meeting said that the restructur-
ing had the support of the Working Group of the GDE and the
Nam Yue Steering Committees. The banks saw the restructur-
ing as offering greatly enhanced returns to creditors
compared to that which could be expected from insolvency
proceedings in relation to the GDE and Nam Yue groups.

According to PriceWaterhouseCoopers, if GDE went bankrupt,
the creditors would incur a loss of between 75 and 85
percent of their advances. By contrast, analysts had
estimated that under the restructuring creditors would
recover up to 79 percent.

Sources close to the steering committee said that most
banks had already agreed to the preliminary restructuring
plan issued in January.  The final plan, also covering
GDE's listing arm Guangdong Investment (GDI) (0270), was
more detailed but not greatly different.  It involved the
transfer to GDI of the mainland utility which provides Hong
Kong with its drinking water, GH Water Supply.

"The time and momentum is ripe for closure," said Paul
Muther, managing director of creditor CCIC Finance. In
December 1998 GDE said it had liabilities of nearly US$6
billion (HK$46.8 billion). (Hong Kong iMail  07-Nov-2000)

GUANDONG ENTERPRISES: Creditors 25% return at best
Creditors of Guangdong Enterprises (Holdings) (GDE) -- the
insolvent investment flagship of the Guangdong provincial
government -- could expect between 11% and 25% of their
loans back if the company went bankrupt.

Standard Chartered Bank -- the liaison bank for the
steering committee -- and the banks' financial adviser
PricewaterhouseCoopers yesterday told more than 120
creditors of GDE and companies in the Nam Yue Group that
they had until December 6 to reply to the proposed debt-
restructuring plan.

The creditors' meeting, convened by Standard Chartered, was
the final stage in the two-year process to restructure
GDE's US$5.95 billion worth of debts.

"Standard Chartered said this is the best we can get," said
a creditor banker who attended yesterday's meeting. "If we
do not accept this plan and let GDE go bankrupt, our
recovery rate would only be 11 percent to 25 percent."

Under the debt-restructuring plan, announced by the
Guangdong provincial government last December, creditors
and bond holders would receive a package of assets for
every US$100 GDE owed them. The package comprises a bond
certificate for the Dongjiang water project with a face
value of US$45. In addition there would be a GDE security
with a face value of between US$10 and US$12, and US$10

The investment arm of the Guangdong provincial government
was left with a mountain of debt after Beijing shut
Guangdong International Trust and Investment Corp (Gitic) -
- one of Guangdong's premier fund-raising arms. The 1998
closure caused an uproar among international banks, which
in turn tightened their lending to a significant number of
Chinese companies, including GDE.

Some creditor banks at yesterday's meeting said they would
accept the offer before the deadline because they did not
expect anything better. But the offer depends on the
acceptance of at least 95% of the bond holders and creditor
banks.  However, subject to the Guangdong provincial
government's discretion, the proposed restructuring plan
could proceed if only 75% of GDE's creditors and bond
holders approved the deal.

Sources close to the deal said more than 90% of GDE
creditors had indicated their approval of the debt-
restructuring plan. The Guangdong provincial government
expects to complete the deal by December 15.

"This restructuring has gone on for two years, all parties
involved want a successful conclusion," CCIC Finance
managing director Paul Muther said after the meeting
yesterday. "The time and momentum is ripe for closure."
(China Web  07-Nov-2000)

NEW WORLD DEVELOPMENT: Debt cut to be delayed
New World Development may have to extend by another six
months its own year-end deadline for completing the sale of
stakes in its telephone operations and luxury hotels, an
executive said.

Tommy Cheng, assistant general manager, said the company
has raised $6 billion of a planned $10 billion to reduce
its debt, mainly from the sale of real estate it had held
for investment. The company hoped to raise the rest of the
money "by the end of the calendar year," he said. "If not,
then by the end of the financial year" in June 2001.

Concern about New World completing its debt-cutting was one
reason the company's stock has lost 32 percent of its value
since September 4 - about a month after managing director
Henry Cheng presented his debt reduction plan and said
there would be action by year end. The slide bumped the
company from its spot as No4 developer by market value.

"When New World announced its plans I said my sell
recommendation would stay until the company actually sold
the assets and paid its debt," said Winnie Chiu, an analyst
at DBS Securities. "I haven't changed my mind."

The company's debt is the main source of its woes. It aims
to repay the debt through the sale of about $1 billion more
in real estate, a stake in the Regent Hotel it values at $1
billion to $3 billion, and $3.8 billion through the sale of
stakes in its fixed-line and mobile telephone businesses.
Its efforts haven't been helped by a global slide in
telecommunications stocks on concern about the cost of
building third-generation networks.

"Global telecom valuations are so beat up they have to sell
it at a loss, probably," said Gary Chan, an analyst at
Nomura International.  "They have still a long way to go
before they take the debt down to a comfortable level."

Debt isn't New World's only problem. Last month, it
reported net income of $215 million, its lowest profit
since 1979.  Mr Cheng blamed the poor result on a $1.6
billion one-time loss from the spin-off of New World China
Land (0917), which owns real estate on the mainland.

Mr Cheng said company would solve its problems through a
renewed focus on real estate, following a decade of
investment in telecommunications, commuter ferries, buses,
the Internet, and roads and bridges.

"Building more units, particularly in the residential
sector, is one of the key drivers for earnings in the next
couple of years," said Mr Cheng.

Home prices fell by about half in 1997 and 1998 and then
did not rebound, squeezing profit margins. To that end, New
World aims to spend $3 billion in the next two years paying
the government for the right to convert farmland to
residential use. It owns 20 million square feet of
agricultural land in the suburban New Territories, half of
which it has permission to develop.

"We would say that the diversification programme is now
complete," Mr Cheng said. "New World Development can focus
on replenishing its landbank."

Still, Mr Cheng was vague about New World's progress
towards selling stakes in its phone units, which require
new investment that could otherwise be spent on buying land
and building apartments. Cheng wouldn't speak at all about
a mooted merger of the mobile phone unit with another local

The company is "talking to a couple of partners" that he
wouldn't name concerning New World Telephone, the fixed-
line operator, Mr Cheng said.  New World Mobility is in
talks with "international players that can help us on the
technical side." (Hong Kong iMail  07-Nov-2000)


PT PELANGI INDAH CANINDO: Reaches debt pact with creditors
PT Pelangi Indah Canindo has reached a deal with creditors
to settle its debts which stood at Rp 530.55 billion as of
December 1999.

Company president Dandy Ko said corporate debts apart from
those under IBRA had been restructured including by a
transferable loan syndicate with arranger NDC Merchant
Bank. Payments are to be done through a haircut

The company owed NDC a total of US$2 million already
settled in June 2000. Its debts with Bank NISP had been
rescheduled worth Rp 4.66 billion. This was redeemed in
October 2000. The same arrangements had been made with
other creditors such as Bank Societe Generale and Inter
Pacific Bank worth US$1.56 million as well as with Diamond

It is still negotiating similar arrangements with Korean
Exchange Bank for settling US$ 4 million in debts. This may
be completed by the end of this month. By December 1999 the
company had a liquid assets of Rp 78.25 billion rising
to Rp 85.68 billion this year.

Total assets were worth Rp 331.19 billion rising to Rp
347.01 billion this year. Short term obligations stood at
Rp 530.55 billion, declining to Rp 255.33 billion this
year. Negative equity stood at Rp 201.43 billion last
December, turning to positive Rp 12.26 billion this year
while sales will rise to Rp 166.81 billion, net profit will
stand at Rp 139.56 billion by the turn of the year. (Bisnis
Indonesia  07-Nov-2000)

SALIM GROUP: Oleochemical assets sold off
The winning among six consortiums bidding for the Salim
Group's oleochemical assets worth around Rp1.4 trillion
(US$156 million) will be announced later this week, a
report said.

Sources at the Indonesian Bank Restructuring Agency (IBRA),
which controls the oleochemicals assets of seven
subsidiaries of the Salim Group, said Newbridge and Chase
Capital are potential winners of the open tender.
Newbridge and Chase Capital, two foreign consortiums taking
part in the open tender had indicated strong interest.
The oleochemical subsidiary companies are part of assets
pledged by the Salim Group to repay the debt of its bank,
Bank Central Asia to the government.

The seven oleochemical companies are PT Batamas Megah, PT
Prima Inti Perkasa in Indonesia, Ethoxylates Manufacturing
Pte Ltd in Singapore, Salim Oleochemicals (S) Pte. Ltd. in
Singapore, Salim Oleochemicals Inc. in the United States,
Deutsche Hydrierwerke GmbH and Salim Oleochemicals GmbH
both in Germany.

Four of the companies are oleochemical manufacturers and
three are trading companies. The shares of the oleochemi-
cals companies was valued at Rp1.02 trillion on a rupiah
exhange rate of 8,000 to the U.S. dollar. The rupiah value
will be higher now with the depreciation of the country's
currency to around 9,000 now. (Asia Pulse  07-Nov-2000)


CHOU-MITSUI TRUST: Posts losses on securities portfolios
DAI-ICHI KANGYO BANK: Posts losses on securities portfolios
DAIWA BANK: Posts losses on securities portfolios
FUJI BANK: Posts losses on securities portfolios
INDUST.BANK OF JAPAN: Posts losses on securities portfolios
SAKURA BANK: Posts losses on securities portfolios
SANWA BANK: Posts losses on securities portfolios
SUMITOMO BANK: Posts losses on securities portfolios
Thirteen major Japanese banks have reportedly suffered a
combined decline of more than 4 trillion yen in latent
profits on their securities portfolios in the half-year to

A report in the Japanese newspaper Yomiuri said yesterday
that at the end of September, the combined latent profits
of the 13 leading banks totalled 1.7 trillion yen, compared
with about 5.9 trillion yen as of the end of March.
During the six months, the benchmark Nikkei stock average
declined from more than 20,000 to around 15,000 at the end
of September.

According to the Yomiuri report, the deterioration in the
capital base of the major banks is expected to hinder the
disposal of non-performing loans (NPLs) that had been
covered by latent profits in securities portfolios.
Latent profits are calculated by comparing the book value
of securities portfolios with market prices.

The report said that among the 13, Sakura Bank and Sanwa
Bank saw their latent profits decline by about 600 billion
yen over the six-month period, while Sumitomo Bank, Dai-
Ichi Kangyo Bank and Fuji Bank each saw their latent
profits drop by about 500 billion yen.

According to the Yomiuri report, Daiwa Bank, Chuo-Mitsui
Trust and Banking Co and the Industrial Bank of Japan also
suffered losses in their securities portfolios over the six
months.  Dai-Ichi Kangyo Bank, Fuji Bank and Industrial
Bank of Japan had merged last month to form the Mizuho
financial group, which has become the world's biggest
banking group in terms of assets.

Most of the big banks have cut profit estimates for the
interim period ending Sept 30, although two of the three
banks making up the Mizuho group last week raised their
half-year earnings estimates, reflecting one-off gains from
share sales.  Fuji Bank said its group current profit would
be 180 billion yen for the six months to Sept 30, up 90%
from its original estimate, while Industrial Bank of Japan
raised its interim parent current profit estimate by nearly
40% to 83 billion yen, despite a 36.6 billion yen valuation
loss on its securities holdings.

Current profit is pre-tax and includes profits and losses
from non-operating activities such as stock investments.
Dai-Ichi Kangyo Bank has made no change in its half-year
group current profit estimate of 75 billion yen, announced
in May.  Last Thursday, Industrial Bank of Japan said it
held a latent loss of 23.6 billion yen in its securities
holdings at the end of September, while Fuji Bank and Dai-
Ichi Kangyo Bank enjoyed combined latent profits of 199.4
billion yen.

Analysts have said that the recent falls in Tokyo share
prices are posing a threat to the health of Japanese banks,
still reeling from hefty costs to eliminate problem loans--
the legacy of a Japanese asset-price bubble that burst a
decade ago.  According to the analysts, if the capital-
weighted Topix index of all first-section issues on the
Tokyo bourse falls to 1,400, then unrealised stock gains at
big banks would disappear. (Star Online, Reuters  04-Nov-


DAEWOO MOTOR: Banks threaten to withhold loans
Banks threatened to withhold loans to Daewoo Motor
Co. -- a move that could force the heavily indebted auto
maker into bankruptcy - unless the company's labor union
agrees to restructuring.

Daewoo Motor must pay $155 million in debts coming due
within a week, and the company would go bankrupt without
quick new loans from the creditor banks, said Uhm Rak Yong,
president of Korea Development Bank, Daewoo Motor's main
creditor. Daewoo Motor's hardline labor union opposes
restructuring demanded by potential foreign investors,
including U.S. auto maker General Motors Corp.

Under such circumstances credit banks can't provide
new funds, Mr. Uhm said. Resistance by hardline labor
is seen as a major obstacle to South Korea's efforts to
liquidate or sell debt-strapped businesses to restore
foreign investors' confidence in the economy.

Daewoo Motor is now surviving on emergency funds from
credit banks trying to sell the company to a foreign
investor. GM is negotiating with Daewoo Motor's credit
banks after Ford Motor Co. pulled out of a deal to acquire
Daewoo Motor in September. If Daewoo Motor is declared
bankrupt, it would further complicate sell-off negotiations
with GM, Mr. Uhm said. (The Asian Wall Street Journal  05-

DAEWOO MOTOR: Union becoming obstacle to cutbacks
Daewoo Motor's labor union yesterday rejected creditors'
calls to agree to drastic restructuring, including layoffs
of 3,500 workers, instead demanding that overdue wages be
paid prior to any reform moves.

Choi Jong-hak, spokesman for Daewoo Motor labor union, said
that the unionists are determined to closely link the
layoff issue to settlements of all overdue wages, estimated
to exceed 100 billion won ($88.5 million).  The union's
negative response immediately heightened the possibility
for the ailing automaker's bankruptcy, as creditors have
already threatened to cut fresh loans to Daewoo unless
labor unionists cooperate with restructuring.

Over the weekend, Minister of Finance and Economy Jin Nyum
and Uhm Rak-yong, governor of the Korea Development Bank,
the main creditor for Daewoo, said that without the Daewoo
Motor labor union's written consent to the automaker's
reform plan, Daewoo will face bankruptcy this week. Daewoo
labor spokesman Choi said that resentment is mounting in
the wake of stern warnings from the government and

"The authorities are attempting to attribute the cause for
the failure to sell off Daewoo Motor to Ford Motor to
labor. Instant settlement of all unpaid salaries is the
prerequisite to any restructuring move," said Choi.

He then hinted that labor will be willing to consider the
scheme to lay off 3,500 of the company's 18,000 workers, if
wages are paid.  Daewoo Motor handed in self-rehabilitating
measure to the creditors last Tuesday, which included
laying off 3,500 workers and cutting wages.

The car manufacturer is liable to make payment of
commercial notes worth 170 billion won due until Nov. 15,
but the creditors stated there would be no additional
funding without the labor union's agreement.

"General Motors Corp. completed preliminary due diligence
on Daewoo Motor and is considering the next move. If Daewoo
is declared bankrupt, however, GM will definitely not take
over," Uhm warned. (Korea Herald  07-Nov-2000)

DAEWOO MOTOR: KCCI head calls for its sale
Park Yong-sung, president of the Korea Chamber of Commerce
and Industry, is calling for the immediate sell-off of
ailing Daewoo Motor, to foreign firms and even at a sharp

According to industry analysts, Daewoo creditors and its
exclusive negotiating party, General Motors, are expected
to engage in substantial price haggling for the troubled
automaker. Park also said that other troubled domestic
industrial assets will also have to be sold to foreigners,
calling for a more open attitude towards foreign

HYUNDAI INVESTMENT TRUST: Investors pulling funds out
Deposits at Hyundai Investment Trust and Securities (HITS)
have decreased by 400 billion won ($353 million) this month
alone since reports surfaced of its trouble being sold to
the American International Group.

The Korean Investment Trust Association said yesterday that
the firm's customer deposits sank by 403.9 billion won,
including 177.8 billion won Nov. 1, and 185 billion won
Nov. 2.  Deposits totaling 51.9 billion won were withdrawn
Oct.30 and 26.8 billion won was withdrawn the following day
with the announcement of the postponement of AIG Chairman
Maurice Greenberg's visit here.

The financial firm's deposits totaled 19.64 trillion won as
of last Friday.  The company said some financial firms
pulled their deposits out following the cancellation of the
AIG chairman's visit, and said it doesn't have any notes or
bonds issued by Hyundai Engineering and Construction.

The company said its president, Lee Chang-shik, visited the
United States last week to put the final touches on the
terms and conditions of its sale to AIG.  The company said
the AIG will become a majority shareholder as soon as it
puts down its investment, which will give it the right to
name 50 percent of the company's board of directors,
including its representative director.

Although management rights will be turned over to the AIG,
the AIG and Hyundai agreed to keep shares as they are for
several more years, as requested by the AIG, which wants to
avoid losing any business as a result of the Hyundai side's
sudden pull out from HITS.  The investment trust sector
wants the government to step in and help solve the HITS's
problems to clear up unstable factors in the financial
market. (Korea Herald  07-Nov-2000)

IL SUNG CONSTRUCTION CO.: Liquidation set aside
Seoul District Court has determined there are no legal
grounds for creditors of Il Sung Construction Co Ltd to
order the company's liquidation.

A statement by Judge Yang Seung-tae said creditor banks had
no basis for liquidating the company because Il Sung is
under a court-administered revival program and has
no plans to borrow funds from banks over the next several
years. Il Sung is one of the companies assessed by
creditors as non-viable and requiring liquidation.

KOREA EXPRESS CO.: Court approves debt-asset freeze
Korea Express Co Ltd has confirmed that the Seoul district
court has approved its application to have its debt and
assets frozen as a step toward placing the company under
court receivership.

The freeze order includes 700 billion won of guarantees the
company made on debt owed by Dong Ah Construction
Industrial Co, according to a company spokeswoman. Korea
Express, along with its parent Dong Ah, were among those
assessed by creditors as non-viable and needing to be
placed under court receivership.

SAMSUNG ELECTRO-MECHANICS: Portugeese unit incurs losses
Samsung Electro-Mechanics' operations in Portugal
reportedly have experienced substantial losses from foreign
exchange futures transactions, according to Daewoo

Portugese banks estimate the losses incurred by Samsung
Electro-Mechanics Portugal at $100 million. The company's
head office in Seoul, meanwhile, maintains the losses total
only $10 million. The Daewoo brokerage reports the losses
resulted partly from illegal transactions, however, and
that the Portugese banks and the head office are engaged in
talks as to the amount of losses the company will
recognize. The Korean company holds a 75 percent stake in
the Portugese subsidiary.

Daewoo Securities surmises that the losses likely will be
divided per equity proportions. If the losses are assumed
to be $50 million, Samsung Electro-Mechanics' share would
be 43 billion won. Accounting-wise, the losses would appear
on the balance sheet of the Korean company as a reduction
in operating profits. In fact, they actually constitute
extraordinary losses which are not large enough to
seriously affect it, according to Daewoo.


MCSB SYSTEMS(M)BHD: Posts its 6th annual loss
For the fiscal year ended June 30, MCSB Systems (M) Bhd
recorded a pretax loss of RM16.3 million. By comparison,
the company posted a RM7.8 million annualized pretax loss
for the previous 15-month fiscal year. Group turnover for
the year ended June 30 was RM64.6 million, down 7.3 percent
from RM69.7 million the previous period.

The company expects to return to the black in the next
financial year after six years of continuous losses,
according to company chairman and chief executive officer
Paul Lim Koon Chow. Lim told reporters following the Annual
General Meeting in Kuala Lumpur yesterday that the MCSB
turnover was expected to grow at least 15% in the current
financial year.


SAN CARLOS MILLING CO.: Its acquisition is delayed
An unstable political climate coupled with the uncertain
ownership status of sugar firm San Carlos Milling Co. are
contributing to delay the financially troubled company's
acquisition by an syndicate of sugarcane planters and a
Thai sugar mill.

According to industry sources, Ban Pong Sugar Co. Ltd of
Thailand has put its plan to purchase San Carlos assets on
hold because of difficulty it's experiencing in securing
loans to finance the purchase. Ban Pong and the
National Federation of Sugarcane Planters Inc. (NFSP) have
plans to team up on the purchase of San Carlos' foreclosed
assets. They are currently for sale from Metropolitan Bank
and Trust Co. for 1.2 billion Philippine pesos ($24.54
million at PhP48.895=$1).  The assets include mill
equipment, wharf and other facilities of San Carlos.


United Broadcasting Corp. Pcl, Thailand's largest pay
television company, recorded a loss of Bt600 million, or
0.81 baht per share, for the third quarter ended Sept. 30.

The loss was 14 percent less than for the same period the
year before when the company posted a loss of Bt695 million
or 0.94 baht per share. The company had 348,000 subscribers
as of Sept. 30, representing an increase of 2 percent from
June 30, according to Chief Operating Officer Francois
Theron in a statement.

The company plans to raise upwards of 2 billion baht ($46
million) from the sale of 200 million new shares, primarily
to institutional investors. Specified plans are to be
determined at a scheduled Nov. 22 shareholders' meeting.
UBC is roughly two-fifths owned by Bangkok phone operator
TelecomAsia Corporation Pcl, with another 25 percent held
by South Africa-based MIH Holdings Ltd.

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