/raid1/www/Hosts/bankrupt/TCRAP_Public/001121.MBX      T R O U B L E D   C O M P A N Y   R E P O R T E R

                             A S I A   P A C I F I C

           Tuesday, November 21, 2000, Vol. 3, No. 227

                                       Headlines


* A U S T R A L I A *

AIR NEW ZEALAND: S&P cuts credit rating
SATELLITE GROUP: Calls in administrator


* C H I N A  &  H O N G  K O N G *

CIL HOLDINGS: Trading suspended for winding-up petition
GUANGNAN HOLDINGS: Reachs revamp-plan agreement
SAN HUAN INT'L LTD: Facing winding up petition
SIXWIN INDUSTRIAL LTD: Facing winding up petition
SURE CROWN INT'L LTD: Facing winding up petition
TONY'S CREATIVE FACTORY LTD: Facing winding up petition
TOP EASE INDUSTRIES LTD: Facing winding up petition
TRANSBEST ENTERPRISE LTD: Facing winding up petition


* I N D O N E S I A *

PT AGHA KARYA PRIMA INDUS.: Net losses up 972%
SALIM GROUP: Challenging personal guarantee agreement


* J A P A N *

KENWOOD CORP.: Forecasting wider annual net loss


* K O R E A *

CHO HUNG BANK: Suffers stock investment losses
DELPHI KOREA: Daewoo woes contributing to its woes
HANVIT BANK: Suffers stock investment losses
HYUNDAI ENGIN.& CONSTR.: `Self-rescue package not enough'
KOOKMIN BANK: Suffers stock investment losses
KOREA ELEC.POWER:Threatened strike threatens debt-cut plans
LG ELECTRONICS: Seeks business partner for cash infusion
NATIONAL FED.OF FISHERIES COOPS.: Restructuring plan set
SEAH TUBING: Daewoo woes contributing to its woes


* M A L A Y S I A *

UNITED ENGINEERS MALAYSIA: Trading suspended re debt-rehab


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

VICTORIAS MILLING CORP.: Management seeking P400M infusion


* S I N G A P O R E *

DSTORE.COM.SG: Aussie firm closes down Sinapore ops


* T H A I L A N D *

CHANTABURI AMC PLC: Rehabilitation petition filed vs. it
NAKORNTHAI THAI STRIP MILL: In debt negotiations
NTS STEEL: In debt negotiations
SUN TECH GROUP: In debt negotiations


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

AIR NEW ZEALAND: S&P cuts credit rating
---------------------------------------
Air New Zealand's credit rating was cut to below investment
grade by Standard & Poor's (S&P) on concern about its debt
burden and delays in absorbing newly acquired Ansett
Holdings.

The airline, 25 per cent owned by Singapore Airlines, this
month warned first-half profit would fall by half because
of more costly fuel, a weaker NZ dollar and tougher
competition. S&P cut its rating to BB+ from BBB-, and gave
it a "stable" rating outlook. It survived a regulatory
investigation focused on inadequate disclosure, which
helped send shares to an eight-month low. (Bloomberg News,
Straits Times  21-Nov-2000)

SATELLITE GROUP: Calls in administrator
---------------------------------------
Embattled property and media outfit The Satellite Group has
appointed an administrator after failing to trade its way
out of financial difficulties.

In what amounts to a major about-face, The Satellite Group
announced late on Friday night that it had appointed Mr
Tony McGrath, of KPMG, as administrator of the group and
its subsidiaries. The board had previously baulked at such
a move, despite pressure from former chairwoman Dr Kerryn
Phelps, who resigned in August after the board blocked her
attempt to appoint a voluntary administrator to the group.

In a letter to shareholders at the time, Dr Phelps said
there was "little likelihood of The Satellite Group's early
restoration to normal trade, or indeed to ongoing financial
viability, without substantial restructuring. In my view,
the appointment of a voluntary administrator would have
limited any further drain on the financial reserves of The
Satellite Group."

It is understood Satellite directors believed the company -
which had its shares suspended in July - could trade its
way out of its difficulties. Concerns have since grown
about the company's risk of trading while insolvent.
Shortly after Dr Phelps's resignation, Consolidated
Constructions issued winding-up notices against The
Satellite Group, claiming it had not been paid for
excavation work on a Satellite development.

Since then, creditors have recalled more than $26 million
in property assets. Most of the group's properties have
been sold or are in the process of being put to market by a
variety of mortgagees including ANZ, the Arab Bank, Axa
Australia, AMP and Westpac. The appointment of an
administrator comes less than two weeks after the group's
founder, Mr Greg Fisher, called for an extraordinary
general meeting to push for reinstatement to the Satellite
board.

Yesterday, Mr Fisher - who was forced to resign from the
group in July - claimed the appointment of KPMG
demonstrated the "paucity of management" since his
departure. However, he hailed the appointment as a positive
move, which he hoped would lead to the group being
restructured and relisted.

What remains to be seen is whether Bridge Street
Developments - run by former Multiplex director Mr Ian
Widdup - will proceed with a takeover bid for the group.
Last week, Bridge Street revealed it was considering a
takeover bid after buying and turning around several former
Satellite properties. (Australian Financial Review  20-Nov-
2000)


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

CIL HOLDINGS: Trading suspended for winding-up petition
-------------------------------------------------------
Share trading in CIL Holdings will be suspended pending an
announcement on the result of a hearing on a winding-up
petition initiated by Lo Sing Pan against the company.

GUANGNAN HOLDINGS: Reachs revamp-plan agreement
-----------------------------------------------
Guangnan Holdings has released a statement saying that its
creditors claims will be assigned to its restructured
parent company, New GDE. The indebted company, a unit of
Guangdong Enterprise (Holdings) (GDE), first announced the
revamp plan at the start of this month, saying it had
finalised the terms of a 17-for-two share offer which would
raise $773 million.

This would be used to repay an outstanding loan from GDE.
The offer is conditional on the company gaining the
approval of its shareholders and at least 95 per cent of
its creditors.  In the case of outstanding claims against
other members of the newly revamped Guangnan Group, other
than directly to Guangnan itself, they will correspondingly
be assigned to Guangnan.

The entire balance of a $40 million loan owed by the
Guangnan Group to Golden Quality Profits will also be
assigned to Guangnan.  After restructuring, there would be
no inter-company balances between the newly restructured
Guangnan Group and related entities outside the group, the
statement went on to say.

After restructuring, Guangnan said unaudited net tangible
assets of the Guangnan Group were expected to amount to
about $434.10 million or about $0.05 per share.  It has
warned that even then it might continue to experience
financial difficulties.

According to the company's statement, at the end of
September the Guangnan Group had outstanding debts of about
$3,170 million, made up of about $2,026 million in bank
loans, about $53 million in overdrafts, about $209 million
in nonfinancial institution loans and also about $882
million in convertible bonds. This figure excludes the
liabilities of deconsolidated firms, totalling about $735
million as of December 31, 1998. (Hong Kong iMail 20-Nov-
2000)

SAN HUAN INT'L LTD: Facing winding up petition
----------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 27 on the petition of
Chen Kang for the winding up of San Huan International
Limited. A notice of legal appearance must be filed on or
before November 26.

SIXWIN INDUSTRIAL LTD: Facing winding up petition
-------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 27 on the petition of
Sin Hua Bank Limited for the winding up of Sixwin
Industrial Limited. A notice of legal appearance must be
filed on or before December 26.

SURE CROWN INT'L LTD: Facing winding up petition
------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on February 7, 2001 on the petition
of Leung Wan Tung for the winding up of Sure Crown
International Limited. A notice of legal appearance must be
filed on or before February 6.

TONY'S CREATIVE FACTORY LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 17, 2001 on the petition
of Koo Ying Kit for the winding up of Tony's Creative
Factory Limited. A notice of legal appearance must be filed
on or before January 16.

TOP EASE INDUSTRIES LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 17, 2001 on the petition
of Tang Yap Kwan for the winding up of Top Ease Industries
Limited. A notice of legal appearance must be filed on or
before January 16.

TRANSBEST ENTERPRISE LTD: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 17, 2001 on the petition
of Mak Yiu Ming for the winding up of Transbest Enterprise
Limited. A notice of legal appearance must be filed on or
before January 16.


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

PT AGHA KARYA PRIMA INDUS.: Net losses up 972%
----------------------------------------------
PT Argha Karya Prima Industry (AKPI) recorded a 972.59%
jump in its net loss to Rp278.70 billion for the first
semester this year, up from Rp25.98 billion for the
corresponding period last year.

The company attributed it mainly to high nonoperating
expenses, indicating that so far there have been no signs
of improvement in the company's performance. Argha Karya
Prima Industry actually managed to increase total revenue
by 9.34% to Rp321.21 billion in the first six months of
this year from Rp293.77 billion last year.

Meanwhile, the cost of goods sold rose by only 6.30% to
Rp233.45 billion from Rp219.62 billion in the period
January-June 1999. Operating expenses edged up by 5.82% to
Rp30.03 billion from Rp28.38 billion in the first half of
last year. Consequently, Argha Karya operating profits
soared 26.12% to Rp57.73 billion from Rp45.78 billion
previously.

However, the increase in total revenue and operating income
did not seem to be enough to cover net losses. The company
had to bear such losses since they failed to reduce the
non-operating expenses.  In this regard, non-operating
expenses amounted to Rp337.51 billion in the first semester
2000, represents a steep increase from Rp83.25 billion in
the corresponding period of 1999.

This surge was mostly due to foreign exchange losses
amounting to Rp256.72 billion compared to Rp33.14 billion
last year. On top of that, net interest burdens also jumped
to Rp72.98 billion from Rp46.73 billion in the period
January-June 1999.

Its liabilities totaled Rp1.85 trillion by the end of June
2000, reflecting a 34.70% rise from Rp1.38 trillion a year
ago.  Meanwhile, AKPI's capital deficiency stood at
Rp216.32 billion per June 2000, worsened drastically from a
negative equity of Rp10.50 billion as end of June 1999.
(Indoexchange News  20-Nov-2000)

SALIM GROUP: Challenging personal guarantee agreement
-----------------------------------------------------
Forced recently to give personal guarantees to cover assets
pledged under an agreement with the government in 1998
under which leading conglomerates received emergency
funding from the government for their crippled banks, the
Salim Group is now challenging the legality of that
original agreement.

They argue that the latest personal guarantee, ordered by
the country's new Coordinating Minister for Economics Rizal
Ramli, is illegal and renders invalid the 1998 Master
Settlement and Acquisition Agreement (MSAA), signed between
the government and the country's three largest tycoons --
Anthony Salim, Sjamsul Nursalim and Mohamad 'Bob' Hasan.

The Salim Group has received the backing of the
International Monetary Fund on its stance, which puts it on
a collision course with the Indonesian Bank Restructuring
Agency (Ibra), the asset disposal entity set up at the
height of the Asian financial crisis to restructure the
banking sector.

Concerned with any adverse impact on Ibra's asset disposal
programme, the IMF has publicly sided with the
conglomerates noting that the MSAA was a binding legal
document and the government should not seek to change it.
Edwin Gerungan, the newly installed chairman of Ibra, told
reporters over the weekend that "there were differences in
the interpretation of the MSAA between the Salim Group and
the agency."

He added the two sides were now in discussions to try and
sort out the matter and acknowledged that the agency's
asset disposal program was under risk if the MSAA was
changed in form or manner. Ibra has lined up a number of
former Salim group assets for sale in the first quarter of
2001 in order to help plug the government's Budget deficit.

The three tycoons were forced by Mr Rizal to hand over
additional assets to the government and provide a personal
guarantee for any potential shortfall in the value of these
assets vis-a-vis their debt to the government or face
possible legal action.  The government stated last week
that the three tycoons had met a Thursday deadline and
provided a letter of commitment and handed over a list of
assets.

But well-placed sources told The Business Times that the
Salim Group was still holding out in providing the
authorities with full details of the assets they were
willing to transfer to Ibra.  Also, they pointed out that a
letter of commitment may not have the same legal force as a
personal guarantee.

Under the MSAA, which was signed in 1998, the three
signatories agreed to transfer corporate and physical
assets to Ibra as full settlement to cover the billions of
dollars of loans the central bank extended to their
troubled banks at the height of the financial crisis. The
agreement freed the signatories of any personal liability
and protected them from legal action should the value of
the assets they handed over diminish due to deteriorating
market conditions.

The Salim Group had transferred equity in 108 companies
within their vast business empire and numerous physical
assets such as Wisma BCA, a prime office building in
Jakarta's business district, to cover the 53 trillion
rupiah (S$9.8 billion) the central bank provided as
emergency liquidity assistance to the troubled Bank Central
Asia, which was wholly owned by the group.

Mr Nursalim, who owns the Gajah Tunggal Group, and Mr Bob
Hasan, owner of the Kiani Group, also transferred equity
and physical assets to Ibra to cover similar liquidity
credit extended to their banks.  With absolute authority to
dispose of these assets, Ibra was mandated with restruc-
turing the banking sector and raising hard cash to help
plug the government's huge Budget deficit.

For the government's fiscal 2000 Budget, Ibra has to raise
17.9 trillion rupiah and a further 27 trillion rupiah for
2001.  But the Salim Group is now contending that Ibra
should no longer have sole authority to sell their assets
as the government was altering the terms and conditions of
the MSAA.

They argue that if they are forced to provide personal
guarantees, their relationship with Ibra should not be
regarded as that stipulated under the MSAA but changed to
comply with the Master Restructuring Agreement (MRA) which
the government signed with the country's other large 21
debtors.

The MRA is different from the MSAA in that while the 21
debtors were personally liable for the emergency funding
they received from the central bank, Ibra did not have
carte blanche power to dispose off assets pledged as
collateral.  BT reported last week that Mr Rizal was
playing a high stakes game to extract more assets from
these three conglomerates as he thinks they inflated the
value of the assets they originally transferred to the
government.

Government sources told BT that they expect the
negotiations between Ibra and the Salim Group to drag on
for a few weeks before a settlement is reached.
But it is uncertain which side will emerge the victor or
whether there will indeed be a winner in the latest face-
off.  (Business Times  20-Nov-2000)


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

KENWOOD CORP.: Forecasting wider annual net loss
------------------------------------------------
Japan's Kenwood Corp is predicting its consolidated
group net loss will jump to 8 billion yen (US$ 73.5
million) for this fiscal year, up 700 percent from a 1
billion yen loss the previous year. The company attributes
to increase in large part to losses from liquidating
unprofitable businesses. Kenwood will post an extraordinary
loss of about 5 billion yen in the second half to cover the
withdrawal from two businesses and the liquidation of
subsidiaries.


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

CHO HUNG BANK: Suffers stock investment losses
HANVIT BANK: Suffers stock investment losses
KOOKMIN BANK: Suffers stock investment losses
----------------------------------------------
Commercial banks which saw some good times last year while
profiting from stock holdings are now on the other side due
to a sluggish market, a financial industry source said
Monday.  Although the Korea Composite Stock Price Index
halved in the first 10 months of this year, the rate of
loss for the banks is above 100 percent.

As of the end of October, the losses from stock investment
amounted to as much as 100 billion won (US$88.4 million).
Hanvit Bank saw the largest loss of 105.1 billion won,
followed by Kookmin Bank with 91.7 billion won and Cho Hung
Bank with 49.5 billion won.

To minimize losses Seoul and KorAm Banks have disposed of
their shares. Other banks have lowered their stakes by
nearly half and virtually stopped trading.  The banks feel
burdened with the time to report yearly balance sheets
drawing near, a banker said.

The banks had left the stock market for a while after
suffering great losses in 1997 and 1998, but returned when
the markets began picking up. They raised their profit
rates by 100 percent when the markets were good.

Analysts say the banks are suffering heavy losses because
their stock management teams are insufficiently staffed,
both in number and training. (Asia Pulse 20-Nov-2000)

DELPHI KOREA: Daewoo woes contributing to its woes
SEAH TUBING: Daewoo woes contributing to its woes
--------------------------------------------------
Daewoo Motor's parts suppliers are bracing for a chain of
failures this week, which threaten to push the bankrupt
automaker deeper into trouble, industry watchers warned
yesterday.  Industry watchers forecast that a string of
bankruptcies among Daewoo's 9,300 plus subcontractors would
be inevitable, starting late this week, in the aftermath of
prolonged closures at Daewoo's main car plant in Pupyong,
west of Seoul, and other local factories.

"About 360 billion won ($316 million) worth of Daewoo
Motor-issued bills are to come due by the end of this month
and additional 1 trillion won in debts and bills will
mature by early next year," said a company executive.
"With Daewoo's debts and assets frozen in the wake of its
Nov. 8 bankruptcy, the whole financial burden for the 360
billion won bills coming due this month will fall on the
subcontractors."

Towards the end of this month, the components suppliers
will approach their financial limits, coming closer to
bankruptcy, he said.  In particular, Delphi Korea -- one of
the largest parts suppliers to Daewoo -- is expected to
fail to settle about 32 billion worth of bills, coming due
Nov. 25, pushing hundreds of its own subcontractors to the
brink of insolvency, the executive noted. Indeed, a die-
casting supplier to Delphi Korea, based in North Kyongsang
Province, was declared bankrupt Nov. 10 after failing to
honor a 180 million won bill.

Three more subcontractors to Delphi Korea followed suit in
the same week.  Last Friday, the Inchon-based Seah Tubing,
a supplier of brake components, also filed with the
municipal authorities to close its plant in the city and
lay off its 50 employees. An executive at an Inchon-based
Daewoo subcontractor complained that despite the
government's promise to force banks to extend financial
support to Daewoo parts suppliers, the bank branch offices
are refusing to buy their bills, demanding collateral.

"Because of the unique characteristics of the auto
industry, parts suppliers, once declared bankrupt, are not
able to restart operations, even if loans are resumed by
creditors later," he said.

Daewoo's creditor banks are scheduled to hold a meeting
today but are not likely to discuss new funding for the
automaker and its subcontractors, citing the union's
continued resistance to layoffs.  Amid escalating disputes
over layoffs, meanwhile, even the outlook for Daewoo's
court receivership is clouded, said the watchers, refusing
to rule out the possibility of liquidation. Due to the
prolonged production disruptions, Daewoo's car sales at
home and abroad are plummeting, while a growing number of
employees are leaving the company.

Daewoo's main car plant in Pupyong yesterday remained
closed for the eleventh consecutive day, as components
supplies have been suspended by cash-strapped subcontrac-
tors. With Daewoo Motor rapidly losing its asset values,
its potential buyer, the General Motors-Fiat consortium,
floated a new proposal to selectively buy only parts of the
failed automaker last week. (Korea Herald  20-Nov-2000)

HYUNDAI ENGIN.& CONSTR.: `Self-rescue package not enough'
---------------------------------------------------------
Hyundai Engineering & Construction's (HEC) possible success
in arranging a 1 trillion won ($876 million) self-rescue
package may temporarily appease market jitters, but will
fall short of defusing the ailing contractor's fundamental
liquidity problems, analysts said.

U.S. brokerage Merrill Lynch warned in a report that HEC
could slip into a fresh liquidity crisis next year,
particularly in light of the sluggish construction sector,
even if its 1 trillion won self rescue plan is implemented
this year.  The Hyundai crisis will persist without clear
and drastic solutions from the government and creditors, it
said.

It also cautioned that Hyundai Motor, spun off from the
Hyundai Group in September, and Hyundai Heavy Industries
(HHI) may suffer financial and managerial setbacks, if
their cash aid is included in HEC's self-rescue scheme.
HEC, saddled with an estimated 5 trillion won in debts, was
given by Dec. 31 to reduce the debt load to less than 4
trillion won through sweeping restructuring, or face court
receivership.

The outlook for HEC's survival is clouded even for now
since the sale of a 160 billion won Hyundai Group
headquarters building in downtown Seoul, an integral part
of the 1 trillion-won package, has stalled, due to the
group's internal strife.  After Hyundai Motor and HHI
refused to purchase the HEC-owned building last week
because of pressure from shareholder, Hyundai Merchant
Marine (HMM), a shipping unit, is being mentioned as the
next candidate, according to Hyundai officials.

"HMM, a de facto holding company for the Hyundai Group
companies controlled by Chung Mong-hun, the largest
shareholder in HEC, is the most desirable buyer of the
group building," said an aide to Chung.  "HMM may be able
to buy the building by selling off parts of its real-estate
assets. Otherwise, Hyundai Electronics Industries and other
group companies will have to jointly acquire the building."

HMM already owns two large-scale office buildings in
downtown Seoul.  But the proposal looks bound to fail, as
HMM executives denied interest in the building. "HMM has
not received any formal proposal on the building
acquisition. No considerations have been given to the
idea," a company spokesman said.

HEC put up for sale six floors of the 14 storied Hyundai
Group building and as many floors of its annex, alleging
they are worth 170 billion to 180 billion won, compared
with a market valuation of less than 160 billion won.
Over the weekend, the government and creditors demanded
that Hyundai hurriedly settle the building sale and present
its delayed rehabilitation measures for HEC by this noon.
"Delayed announcement of Hyundai's self-rescue package is
deepening distrust from the market. The government and
creditors asked Hyundai to finalize the package by Monday
morning," said a spokesman for the Financial Supervisory
Commission.

Against this backdrop, local economists and even the state-
run Korea Development Institute are stepping up calls for
immediate liquidation of HEC, citing little hope for its
turnaround. Prof. Chung Un-chan of Seoul National
University, a renowned economist, said Thursday that HEC
and other terminally ailing and nonviable enterprises
should be immediately put on the path to liquidation.

On Friday, HEC indefinitely put off the announcement of its
self-rescue measures after its failure to persuade HHI
management. Earlier on Thursday, Chung managed to receive
Hyundai Motor's pledge to extend 216 billion won in
financial support, though Hyundai Motor union issued a
strong opposition.

The self-rescue package was also to contain the sale of a
farm south of Seoul worth 600 billion won, a commitment to
separate Hyundai Electronics Industries from the rest of
the group by 2002 and a 40 billion won private wealth
investment from Chung. (Korea Herald  20-Nov-2000)

KOREA ELEC.POWER:Threatened strike threatens debt-cut plans
-----------------------------------------------------------
Korea Electric Power Corp.'s labor union voted to strike
for the first time in the state-owned electricity
monopoly's 39-year history, demanding an end to
privatization plans that may spur job cuts.

Almost 88 percent of Kepco's 23,767 union members attended
a meeting and approved a proposal to strike next Friday
should the National Assembly pass reform bills governing
the power industry, the company said in a statement. The
action threatens to impede Kepco's efforts to sell most of
its power generation business to reduce debt.

About 90 percent of its 25 trillion won ($22 billion) of
interest-bearing debt was incurred to build power plants.
A strike would be considered illegal by the government
because of special employment laws at state companies,
including Kepco. Delays to Korea's plans to sell power
plants would also hinder the government's efforts to raise
funds to bail out banks and pay for other economic reforms.

"Union resistance has been the main hurdle in the past year
to forging ahead with reform," said Sohn Je Seong, a
utility analyst at Daewoo Securities Co. in Seoul. "Still,
its influence won't be as big as before," as there is
widespread support for industrial restructuring.

Last December, draft bills for overhauling the electricity
industry were rejected in the National Assembly because of
political squabbling between the ruling and opposition
parties ahead of national elections.  Kepco stock dropped
0.7 percent to 26,800 won Friday, extending its decline
this year to 24 percent. The benchmark Kospi index fell 46
percent over the same period.

One of the bills would pave the way for the separation of
Kepco's power generation business into six smaller units.
Under the other bill, Kepco would then sell all these
except the one containing its nuclear plants to private
companies, and focus on electricity transmission and
distribution.  The sales are aimed at relieving Kepco's
cash burden of building new power plants as demand for
electricity grows.

"The restructuring is needed to raise private capital for
the economy," Sohn said. "For now, Kepco is bearing most of
the burden."

Kepco controls 94 percent of Korea's power generation and
also monopolizes electricity transmission and distribution.
The Korean government expects the economy to grow 5.5
percent next year, and 9 percent this year, increasing
demand for electricity from companies and households.
Kepco's sale of the power plants may pick up speed by 2002
if the new laws are passed soon, Sohn said.

The company may be able to raise as much as 20 trillion
won, based on prices paid for European power plants last
year, he said.  The National Assembly will make a third
attempt to pass the legislation on Thursday.

Union members are concerned the sale of the power
generation business will make electricity more expensive as
the new owners seek bigger returns on their investment.
They also expect job cuts at the plants.  "The government
has to scrap its plant sale plan," Kepco's labor union said
in a statement. "The reform of state-owned companies should
be aimed to give more benefits to the public. It should not
include the sale of the country's key industry."

Electricity charges would double if the reforms are
completed and the plants are sold, the union said. Kepco
already began selling its power generation business. In
June, the company sold two gas-fueled plants near Seoul not
covered by current legislation to a group led by LG-Caltex
Oil Corp. and Texaco Inc. for 771 billion won. (Bloomberg
19-Nov-2000)

LG ELECTRONICS: Seeks business partner for cash infusion
--------------------------------------------------------
LG Electronics Inc., the world's second-largest cathode-ray
tube maker, said it is seeking a business partner to raise
funds to help reduce its debt to levels demanded by
creditors.

The Korean company denied a report in the Naeway Economic
Daily that it is close to an agreement to sell half its
monotone picture tube business to Royal Philips Electronics
NV for about $1 billion. Philips, the world's third-largest
CRT maker, may sign an agreement on Nov. 28, the Korean
newspaper said, citing an unnamed LG official.

"We are aware of such speculation," LG Electronics
spokesman Oh Se Chun said. "Still, nothing has been
completed for now," in terms of plans or partners.

Together, LG and Philips would supplant Samsung SDI Co. as
the world's biggest maker of such tubes, a key material
used to make television and computer monitors.  "We are
talking to everyone, including LG, on all types of
matters," Pieter Schaffels, a spokesman for Philips in
Amsterdam said. "We said when we announced the joint
venture with LG in liquid crystal display screens that we
would investigate other areas."

LG informed the Korea Stock Exchange it will report the
general progress of its business reorganization efforts by
the end of December. The company needs to reduce its debt-
to-equity ratio to less than 200 percent from 280 percent
to satisfy its banks.  Last year, Philips bought half of
LG's flat-panel screen business for $1.6 billion.
(Bloomberg  19-Nov-2000)

NATIONAL FED.OF FISHERIES COOPS.: Restructuring plan set
--------------------------------------------------------
A restructuring plan has been set for the teetering
National Federation of Fisheries Co-operatives [NFFC],
Maritime Affairs and Fisheries Minister Noh Mu-hyun says.

As part of the restructuring process, NFFC-related laws
will be revised to make public funds available and a task
force consisting of professional managers will be formed to
improve management, the minister said in a meeting with
NFFC leaders.  By the end of the year, the co-operatives''
employees will be reduced to 1,835 from the current 2,166,
and the number of its branches will decline to 122 from
134.

The plan came after the Board of Audit and Inspection, the
Maritime Affairs and Fisheries Ministry and the Financial
Supervisory Service investigated the NFFC from April to
June.  Though the NFFC is supposed to help fishermen, it
lent a considerable amount of money to conglomerates,
including the  ailing Daewoo Group.

As a result, its total credit worth 4.3 trillion won
(US$3.8 billion) includes 1.2 trillion won worth of bad
loans, or 29 per cent. (Asia Pulse  17-Nov-2000)


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

UNITED ENGINEERS MALAYSIA: Trading suspended re debt-rehab
----------------------------------------------------------
United Engineers ( Malaysia) has requested that the Kuala
Lumpur Stock Exchange suspend trading of its shares and
warrants because its board of directors is deliberating a
debt-restructuring program for the company. In a Nov. 20
letter to the KLSE, the company noted that part of its
restructuring would include reorganizing some of its
interests, including Renong Berhad and acquisition of other
assets.


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

VICTORIAS MILLING CORP.: Management seeking P400M infusion
----------------------------------------------------------
The management of Victorias Milling Co. Inc. is seeking
P400-million cash infusion and the conversion of the
company's P400-million debts into equity.

By making the recommendations, the management hoped to
strike a compromise with a separate management committee
which had prepared its own rehabilitation program. Manage-
ment said the fresh capital infusion of P400 million would
adequately cover working capital, capital expenditures and
the cost of complete retrenchment. The amount is P100-
million higher than that proposed in the mancom version.

Victorias' chief finance officer Romeo Hermoso said the
creditor-banks of the sugar firm posed no objection to the
management's proposed P400 million fresh capital infusion.
Hermoso said management has proposed an additional debt
conversion at eight percent interest in the amount of P400
million be made by the clean creditors-if required-during
the implementation of Victorias' rehabilitation plan.

The conversion of the debts into convertible notes will be
effected at anytime the start of year one to three of the
rehabilitation period. It shall not in any way, however,
reduce the equity of existing stockholders below 11
percent.

Hermoso said the clean creditors should undertake a firm
commitment to ensure the viability and financial
feasibility of Victorias' rehabilitation. Moreover, Hermoso
said the mancom may initiate the creation of the new board
of directors of Victorias but its functions would take
effect only upon compliance of the following conditions:
the implementation of the quasi-reorganization of Victorias
consequent to the clean creditors' debt to equity
conversion is completed and the infusion of P400 million.

The SEC, however, earlier, said it was considering
approving the alternative rehabilitation plan drafted by
the management committee overseeing the operations of
Victorias since majority of sugar firm's creditors had
already given their nod to the proposed recovery program.
Only Bank of the Philippine Islands, whose claim represents
35.5 percent of the sugar firm's secured creditors,
objected to the rehabilitation plan drafted by the
management committee.

The management committee submitted an alternative
rehabilitation plan for Victorias in June after a failed
bidding of the company's 53 percent equity stake. The
bidding formed part of the wide-ranging rehabilitation plan
originally filed by the management committee with the SEC a
few months after it sought reprieve from the SEC on the
payment of its multi-billion peso debts.

The alternative plan submitted by VMC mancom called for the
infusion of P300 million in fresh capital into Victorias
and the conversion of debt into equity in exchange for 70
percent ownership of the sugar firm. In case no white
knight is found, clean creditors of the sugar firm have
committed to install an acceptable management team and
raise the needed money within 120 days from the date the
debt to equity conversion and appointment of the new board
of directors is implemented.

The SEC hearing panel said the management committee has yet
to find a white knight willing to bail Victorias out of
financial quagmire.  The approved quasi-reorganization of
Victorias involved the reduction of the par value of the
company's shares from P10 per share to P1 per share.

As a result, the authorized capital stock will be increased
to 4.6 billion shares instead of the original approval of
2.5 billion. From the new capitalization, 405.96 million
shares will be issued to existing shareholders or at the
rate of 2.91 shares for every one share held.  The debt
level of Victorias has grown to P6.55 billion from P5.18
billion due to accumulation of unpaid interest, which
should have been from the firm's cash flow if the
rehabilitation plan was implemented earlier.

Two interested investors-RCBC Capital Corp. and Central
Azucarera de Don Pedro decided not to bid possibly because
of the company's current debt level.  BPI, however, had
urged the SEC to junk the alternative plan which it claimed
was not feasible since Victorias would continue to suffer
losses for the next five years even with the proposed
reduction of debt through equity conversion of P1.1 billion
and convertible notes of P2.4 billion. (Manila Times 20-
Nov-2000)


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

DSTORE.COM.SG: Aussie firm closes down Sinapore ops
---------------------------------------------------
Two-month-old online shopping portal, dstore.com.sg, has
shocked staff by shutting down its local operations
suddenly.

Set up by dstore.com of Australia, which is backed by
investors such as Microsoft and media baron Kerry Packer's
Publishing and Broadcasting, it dropped a bombshell on its
25 staff last Thursday when it announced it was pulling the
plug with immediate effect.

The local website was launched only last month. Sporting
goods, music CDs and toys were among the items offered.
When The Straits Times visited its premises in Changi
yesterday, it was locked up. Its Singapore website was
inaccessible.

Mr David Gold, its chief executive officer based in Sydney,
could not be contacted but sources said that the closure
here was part of a group rationalisation process underway
in Australia. The source said functions like finance and
Web-content development had been centralised in Australia
to cut costs.

The closure contrasts with the dot.com glitter promised in
April when mainboard-listed Ossia International, as part of
reinventing itself as a new-economy company, swapped shares
in its lifestyle e-commerce hub gatecrash.com for a 7-8 per
cent stake in dstore.

Mr Gold had planned then to build on gatecrash.com's base
of 50,000 subscribers to "reach over 200,000 online
shoppers by the end of 2000 as dstore expands into other
parts of Asia."

Hongkong and Malaysia sites were to have followed later in
the year. However, these pan-Asian plans have not taken off
yet. At the same time, Ossia and dstore agreed to a three-
year fulfilment and distribution co-operation where Ossia
would provide distribution and logistics functions across
seven Asian countries. Contacted yesterday, Ossia's deputy
chairman, Mr George Goh, said that there was "no change in
the arrangement" with dstore.  (Straits Times  21-Nov-2000)


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

CHANTABURI AMC PLC: Rehabilitation petition filed vs. it
--------------------------------------------------------
Thai Farmers Bank Public Company Limited and creditors of
Chantaburi AMC Public Company Limited have filed a petition
for the business rehabilitation of Chantaburi with the
Central Bankruptcy Court. It was filed on November 15, 2000
as Black Case No. 939/2543. The first hearing for the
business rehabilitation is scheduled by the Court on
December 12, 2000 at 9 a.m.

NAKORNTHAI THAI STRIP MILL: In debt negotiations
NTS STEEL: In debt negotiations
SUN TECH GROUP: In debt negotiations
-------------------------------
NTS Steel Group expects to settle its 70-billion-baht debt
with its creditors soon, according to chairman Sawasdi
Horrungruang, who further confirms that debt negotiations
are entering their final stage.

Mr Sawasdi, who will contest the Jan 6 election under the
Chart Thai banner, expressed confidence in the group's
future survival. A debt restructuring plan for each
subsidiary under the group is near to completion. Among
them, Nakornthai Thai Strip Mill Plc, which owes 40 billion
baht to creditors, Grant Thornton serving as the planner.
The plan is expected to be filed with the creditors on Jan
6. The subsidiary is seeking 100 million baht in fresh
funds as working capital. Negotiations for the first 50
million baht loan are expected to be wrapped up by next
month.

"There will be no problem with the remainder," Mr Sawasdi
said. He said he had also asked Grant Thornton to find
foreign partners to strengthen the group's financial and
marketing areas. "This will help make the group's operation
more professional."

NTS Steel Plc, the group's flagship, also owes creditors 20
billion baht. Deloitte Touche is the planner in charge of
restructuring. Because of the number of foreign creditors
involved, Mr Sawasdi said the plan would take until the
first quarter next year to be submitted.

Once the plan is approved, NTS Steel is prepared to
establish a new joint-venture company with a steel
subsidiary of Siam Cement to jointly operate the steel
mills to help reduce costs. Sun Tech Group Plc, burdened
with five billion baht in debt, is also under business
reorganisation and completion is expected in the first
quarter next year. Sriracha Harbour Plc has already
restructured its three billion baht in debt by means of the
equity participation of foreign partners.

Once restructuring is achieved, Mr Sawasdi said he would
become a small shareholder in each subsidiary as almost all
debt would be converted to equity. The exception will be
Sriracha Harbour in which he will retain 70% as the major
shareholder. His holdings in Nakornthai Strip Mill and NTS
Steel will be reduced to 3% each and in Sun Tech his share
will be 10%At each subsidiary, he said, a buy-back option
was available.

"I will try it and see if 10-20% of shares are enough for
me to buy back," said Mr Sawasdi, who added his attitude
toward doing business had changed. It was unnecessary for
him to be the majority shareholder with a major hands-on
management presence, as long as operations were healthy, he
noted.

In the future, all subsidiaries will be operated by new
management teams after debt restructuring, with Mr Sawasdi
remaining as each subsidiary's chairman and main policy-
maker. "That is enough for me because the operation has
been constructed by me, although I have become a small
shareholder," he said.

When the economic crisis struck, Mr Sawasdi became
something of a folk hero among over-extended tycoons for
his "three nos" philosophy-no pay, no talk, no flight. He
has no regrets about his outspoken approach. "Looking at my
slogan, there was no word of cheating. I never cheated
anyone but I wanted some time to restructure my business.
If I had continued servicing my debt, my operations would
have ceased two years ago. My debt-service suspension
helped continue the operation without any redundancies or
salary reductions."

One major creditor said Nakornthai Strip Mill currently
needed US$100-150 million in fresh funds if it could not
raise capital under the rehabilitation plan. "Mr Sawasdi
went to Europe last month to ask foreign creditors for new
loans as working capital, but the talks failed," he said.

Mr Sawasdi, who now plays the role of plan administrator
but with no direct management role, still had to take
responsibility as personal guarantor for much of the debt
even though he had entered politics, bankers said. Several
creditors are attempting to help Mr Sawasdi by mediating
negotiations with new investors to take an equity stake in
Nakornthai Strip Mill.

One banker said the company's debt stood around $850
million, but that the total debt on record with the Central
Bankruptcy Court was $2.7 billion due to overlapping claims
by bondholders and bond trustees. NTS Steel alone, the
source said, needed an additional 500 million baht to
maximise production efficiency, but no investors were
interested because of poor prospects for the steel bar
industry. (Bangkok Post  20-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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