TCRAP_Public/001129.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 29, 2000, Vol. 3, No. 232


* A U S T R A L I A *

APM GROUP: Placed under receivership
METCASH TRADING: Posts 1H $9.3M loss
PIRELLI CABLES AUSTRALIA: Investors urged to take $73M bid

* C H I N A  &  H O N G  K O N G *

REGENT MERCHANT BANK: KorAm denies loan; closure possible
SINO SENIOR ENGINEERING LTD: Facing winding up petition
SINO SENIOR LTD: Facing winding up petition
SOUTHERN RICH ENTERPRISES LTD: Facing winding up petition
SOUTHWELL ENGINEERING LTD: Facing winding up petition
SUN DENKI (HK) CO.LTD.: Facing winding up petition
TELE-ART LTD.: Facing winding up petition
TOMWAY INVESTMENTS LTD: Facing winding up petition
VANKIN INVESTMENTS LTD: Facing winding up petition

* I N D O N E S I A *

PT DANAMON USAHA MOBIL: One subsidiary pays debts,19 MOUs
PT GARUDA INDO. AIRWAYS: Restructuring hits snags
WICAKSANA OVERSEAS: Posts nine-month loss

* J A P A N *

ISUZU MOTORS: Net loss bigger than expected
TOKYO SOWA BANK: Takeover talks deadlocked

* K O R E A *

KYONGNAM BANK: Branch closures, layoffs planned

* M A L A Y S I A *

MALAYSIAN AIRLINES: Loss maker in stake talks
RENONG BHD.: Interest costs push it into the red
TIME ENGINEERING: Posts Q3 net loss

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

EEI CORP.: To re-finance P500M worth of loans

* T H A I L A N D *

CENTRAL PAPER INDUS.: Enters debt-restructuring process
EKACHART FINANCE: Reaches debt-rehab agreement
PROPERTY PERFECT: Review of debt rehab plan set
ROYAL CERAMIC INDUSTRY: Court approves business rehab plan
THAI PETROCHEM.INDUS.: Strike likely after debt plan OK'd
UNITED FLOUR MILL: Sells subsidiary to pay losses


APM GROUP: Placed under receivership
APM Group, one of Queensland's top five body corporate
managers, has been placed into receivership.

On Nov. 26, Body Corporate Managers Institute of Queensland
president, Ian Wills, said the collapse of APM shows the
need to better regulate the industry. Queensland law
currently places no regulations on the property management
industry and requires no licences or audits.

APM's receiver, Calabro Partners, is reassuring property
owners that APM will continue to serve its duties as
it looks for a prospective purchaser. APM subsidiaries
include Accountable Property Management, Springwood Strata
Title Management and Complete Body Corporate Management.
(ABIX - Australasian Business Intelligence: The Courier-
mail 26-Nov-2000)

METCASH TRADING: Posts 1H $9.3M loss
Grocery wholesaler and distributor Metcash Trading posted a
$9.3 million loss for the half year.

The restructured former Davids, which is now 70 percent-
owned by South Africa's Metro Cash & Carry, reported sales
of $2.54 billion for the 26 weeks to October.  This was up
12.7 per cent on the 1999 half-year, but is not directly
comparable as Metcash has divested the company-owned retail
stores that accounted for $302,000 of last year's turnover.

Metcash's closing or selling of the retail stores -
including the Jewel chain - to focus on its wholesale
business resulted in an $11.4 million abnormal loss for the
2000 half-year. This was more than three times the $4.1
million the company lost on its retail operations in 1999.

"If you compare like with like, the underlying business
improvement hasn't been quite as dramatic as it might first
look," one retail analyst said.

The $3.9 million profit before the $13.2 million in
abnormal losses, including costs arising from the GST, was
just slightly above the $3.85 million reported in 1999.
Metcash chief executive Mr Andrew Reitzer cited the result
as evidence that the fortunes of its IGA Distribution,
Australian Liquor Marketers, Campbells Cash & Carry and
John Lewis Food Services divisions were all on the improve
following the recent restructure.

"It really demonstrates all four businesses have turned
around and are well on their way to producing the sort of
returns they should be producing," he said.

ABN Amro retail analyst Mr Richard Cahill said: "They've
made lots of improvements from where they've come from.
The company is doing a good job and I would expect their
profits to continue to grow."

Positioned in the non-discretionary spending end of the
retail market, which is relatively immune to fluctuations
in consumer confidence, Metcash expects to post similar
gains in the current half. Boosting management's confidence
in the outlook for the company is the 1 per cent gain in
market share Metcash achieved in the period to October,
"the first time in living memory", according to Mr Reitzer.

He acknowledged it would be difficult to continue to steal
market share from supermarket giants Woolworths and Coles.
In a bid to strengthen its wholesale distribution business,
Metcash has announced plans to bring all its ordering
online within the next two years.

Expected to be virtually cost-neutral, this initiative will
enable customers to purchase from all four Metcash
businesses with just the one order. The company predicts 60
to 70 per cent of its business will be conducted
electronically within three years. Metcash shares fell 1c
to 38c yesterday. (Sydney Morning Herald  28-Nov-2000)

PIRELLI CABLES AUSTRALIA: Investors urged to take $73M bid
Pirelli Cables Australia yesterday urged shareholders to
accept a $73.1 million takeover offer to help end the
troubled cable maker's financial misery.

Pirelli said its independent directors recommended
investors accept the 85 centsashare bid from the group's
majority shareholder, Italy's Pirelli Cavi e Sistemi SpA,
based on independent expert advice from Deloitte Corporate
Finance.  A report by Deloitte described the offer price as
"fair and reasonable", sparking Pirelli's board to
recommend shareholders accept it in the absence of a higher

"Unfortunately, the considerable efforts of the board and
the management team to improve the company's performance
are unlikely to reward shareholders for the foreseeable
future," Pirelli Cables said.  "Accordingly, the
independent directors are firmly of the opinion that
Pirelli's offer represents the best outcome for
shareholders and the most practical alternative in the
present circumstances."

The Italian group, a subsidiary of the cable and tyre
manufacturer Pirelli, last month launched its takeover
offer for the remaining 49 per cent of the Australian
company it does not already own.  Pirelli Cables said that
among the main reasons for accepting the offer was the fact
that the offer price was in excess of the independent
expert's evaluation range of between 40 cents and 61 cents
a share.

The group has also forecast a weak and uncertain economic
outlook for its business and believes the prospect of a
rival bidder emerging to be remote.  It is also "highly
unlikely" to be able to pay any dividend for the year to
December 31 and fears its share price could plunge of the
takeover fails.

Earlier this month Pirelli Cables, which makes a variety of
metallic and fibreoptic cables for use in the energy and
telecommunications industries, warned that its second half
loss would be "substantially greater" than the first.  The
group said a slow down in trading anticipated around the
time of the Sydney Olympic Games had continued into
October, with operating losses mounting and no signs of

It has been under pressure from the weak Australian dollar,
rising copper prices, delays with the commissioning of
plant and equipment from Minto to Liverpool in Sydney and
softening demand for its products.  The group is now
expected to post an after tax loss of about $37.6 million
for the year to December 31. (Fairfax I.T. 28-Nov-2000

C H I N A  &  H O N G  K O N G

REGENT MERCHANT BANK: KorAm denies loan; closure possible
Regent Merchant Bank, a unit of iRegent, has failed to get
an emergency loan of 150 billion won (HK$990.6 million)
from KorAm Bank, as customers continued withdrawing money
after allegations of illegal lending practices.

Customers withdrew a quarter of Regent Merchant's deposits
of 950 billion won on Saturday and Monday. The rejection of
KorAm comes immediately after iRegent shares were suspended
in Hong Kong.

Without the emergency loan, Regent Merchant may be forced
to shut its doors if customers keep withdrawing money from
what is one of the nation's strongest merchant banks. The
company's capital to risk-weighted assets ratio is 22
percent. "If the run on deposits continues, I will have to
close the bank," Robin Willi, Regent Merchant chairman,
said yesterday. The bank may close this week, he said.
Regent officials were not available for comment today.

Allegations against Regent stemmed from a probe into
alleged corruption involving Jin Seong Hyun, president of
MCI Korea, a firm that invests primarily in financial
companies.  Jin, who invested $30 million in July 1999 to
become the third-largest shareholder of iRegent's
KoreaOnline, the holding company of six Regent units in
Korea, borrowed as much as 88 billion won from Regent
Securities and Regent Merchant in return for helping boost
Regent Securities shares in late 1999, the Korea Economic
Daily said.

"The loans were made to Mr. Jin's companies by former
management of subsidiary companies," Peter Everington, vice
chairman of KoreaOnline, said yesterday. "Following an
internal review which revealed that these loans were made
against internal rules, the relevant management was

Regent Merchant shares fell by as much as 13.6 percent
today to a record low of 1,555 won.  IRegent has been one
of the most aggressive investors in Korea since the 1997
currency crisis, which triggered a surge of corporate
failures and bad loans, leading to a near collapse of the
Korean financial industry.  The company, which also owns
Regent Asset Management Co. and Regent Insurance Co.,
recently acquired Ileun Securities Co. (Bloomberg  28-Nov-

SINO SENIOR ENGINEERING LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 13 on the petition of
Wing Lung Bank Limited for the winding up of Sino Senior
Engineering Limited. A notice of legal appearance must be
filed on or before December 12.

SINO SENIOR LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 13 on the petition of
Wing Lung Bank Limited for the winding up of Sino Senior
Limited. A notice of legal appearance must be filed on or
before December 12.

SOUTHERN RICH ENTERPRISES 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 Cheung Kam Keung for the winding up of Southern Rich
Enterprises Limited. A notice of legal appearance must be
filed on or before February 6.

SOUTHWELL ENGINEERING LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 10 on the petition of Li
Kwok Wah and Yu Chung Yee for the winding up of Southwell
Engineering Limited. A notice of legal appearance must be
filed on or before January 9.

SUN DENKI (HK) CO.LTD.: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 16 on the petition of
Hung Hing Off-set Printing Company Limited for the winding
up of Sun Denki (Hong Kong) CompanyLimited. A notice of
legal appearance must be filed on or before January 15.

TELE-ART LTD.: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 10 on the petition of
Leung Wing Sze for the winding up of Tele-Art Limited. A
notice of legal appearance must be filed on or before
January 9.

TOMWAY INVESTMENTS LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 20 on the petition of
Centaline Property Agency Limited for the winding up of
Tomway Investments Limited. A notice of legal appearance
must be filed on or before December 19.

VANKIN INVESTMENTS LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 13 on the petition of
Wing Lung Bank Limited for the winding up of Vankin
Investments Limited. A notice of legal appearance must be
filed on or before December 12.


PT DANAMON USAHA MOBIL: One subsidiary pays debts,19 MOUs
So far only one out of twenty-seven companies belonging to
debtor Usman Admadjaja/Bentala Group (Danamon Group), has
paid its debts. The one is car leasing company PT Danamon
Usaha Mobil, with Rp5.02bn in total debts.

Meanwhile, 19 subsidiary companies belonging to the
business group have signed Memoranda of Understanding (MoU)
with the Indonesian Banking Restructuring Agency (IBRA).
They are:
1. PT Bukit Sion Permata - total debts Rp39.98 billion
2. PT Caterison Sukses - total debts Rp336.27 billion
3. PT Bentala Lestari - total debts Rp1.02 trillion
4. PT Caraka Restunusa -- total debts Rp25 billion
5. PT Kumala Mandiri Mas -- total debts Rp15 billion
6. PT Luhur Mandiri -- total debts Rp23 billion
7. PT Nusantarajaya Dhian Abadi -- total debts Rp27 billion
8. PT Penyelia Reksa Abadi -- total debts Rp25 billion
9. PT Suryamandiri Sejati -- total debts Rp20 billion
10. PT Wahyumitra Andalan -- total debts 84 billion
11. PT Witajaya Abdi Andalan Utama -- total debts Rp77
12. PT Tata Mustika Reksa -- total debts Rp18.69 billion
13. PT Harumsion Abadi -- total debts Rp35 billion
14. PT Penaja Bangun Utama -- total debts 24.96 billion
15. PT Aksaranusa Dinamika -- total debts Rp41.37 billion
16. PT Abdi Andalan Reksatama -- total debts Rp45 billion
17. PT Karya Nusa Marga Mandiri -- total debts Rp15.16
18. PT Lingganusa Sembada -- total debts Rp46.68 billion
19. PT Supra Tunggaljaya -- total debts Rp31.12 billion

Seven other subsidiaries have not signed MoUs:
1. PT Bentala Mahaya -- total debts Rp76.19 billion
2. PT Manggala Gelora Perkasa -- total debts $95 million
3. PT Nusapuri Lestarijaya -- total debts Rp7.23 billion
4. PT Danamon Finance -- total debts Rp509.51 billion and
$15 million
5. PT Danamon Usaha Pembiayaan -- total debts Rp5 billion
and $5 million
6. PT Danamon Usaha Gedung -- total debts Rp22 billion and
$105 million
7. PT Danamon Sentra Pembiayaan -- total debts Rp10 billion

In 1999, the business group was included as one of IBRA's
21 top debtors. It had to pledge most of its assets as
guarantees for debt payment. (Indoexchange News 27-Nov-

PT GARUDA INDO. AIRWAYS: Restructuring hits snags
Bank Mandiri has rejected the debt restructuring conditions
of PT Garuda Indonesia Airways (GIA) offered by the
European Credit Agency (ECA), causing snags to efforts to
settle the airline's debts.

A Bisnis source said Bank Mandiri has two sorts of debts
related to the debt restructuring of Garuda, namely old
debts of US$103 million and syndicated loans of US$100
million as risk participation on the supply of A330
aircraft worth US$610 million.

"Old debts would become convertible bonds guaranteed by the
government. But talks on the syndicated loan of US$610 has
made no progress," he said here yesterday.

The main snag is that ECA has asked Bank Mandiri a.o. not
to do an IPO that would turn the government into a non-
majority shareholder. ECA has also proposed that Bank
Mandiri issue a stand-by L/C facility for 10 years, while
Bank Mandiri has asked for three years. Bank Mandiri, he
said, basically agreed to take part in the ECA syndication,
once the conditions are changed. On the old debts of US$103
million, all of them would be made into convertible bonds
for three years.

"So that it would not be rated, there must be a government
guarantee. That has been agreed."  A Bisnis source in the
government said that the scheme has merits but that "it is
normal that snags emerge on the technical stage."

He said Bank Mandiri might be concerned that its risk
participation with ECA may have an indirect effect on its
CAR. Garuda Finance Director Emirsyah Satar earlier said
the guarantee of Bank Mandiri was asked by ECA -- a
consortium of British, French and German export creditors -
- as the period has been altered from 12 to 16 years.

Garuda owes ECA US$610 million for the lease of six A-330s.
The debt to ECA reaches one-third of Garuda's total debt of
US$1.65 billion. According to Emirsyah, ECA had asked for a
government guarantee prior to their agreeing to restructure
the debts.

Later, the Bank Mandiri provided the guarantee of US$100
million. Garuda also owes banks, issued commercial papers
and has commercial debts worth US$601 million, obligation
to pay 11 B-737s to the government (US$422 million) and
other debts worth US$178 million.

The loans have been approved by the financial committee
KKSK for restructuring. The scheme approved by KKSK
involves the debt to Bank Mandiri and airport operators PT
Angkasa Pura I and II worth US$141 million, all of which
would be made into convertible bonds. The debt of the 11 B-
737s worth US$42 million and a government loan of US$9
million would gradually become government equity.

The remaining debt of US$460 million would be restructured
in eight years. Emirsyah added that the Bank Mandiri US$100
million guarantee has been approved by the KKSK. "If the
program succeeds, Garuda's negative equity of US$234
million would become positive, saving the state firm from

A Bisnis source in Bank Mandiri revealed that another
obstacle to the restructuring of Garuda is the unclear
status of Garuda's commercial papers (CP). "Some say they
are worth US$200 million, others say US$300 million."
The status of the CPs has wide implications on the
restructuring of Garuda as a whole.

Another source said that the Garuda FRN (floating rate
notes) are worth 42% of its nominal value, or a reduction
of 58%. This shows that the market is not too happy with
Garuda's performance. The already low price is still being
asked to go even lower by investors, most of whom are
travel agents. At present, only travel agents are
interested in Garuda's CPs.

"It is said that travel agents are interested in the Garuda
notes so that in the future they could use them to pay for
tickets they bought from Garuda in the past." (Bisnis
Indonesia  28-Nov-2000)

WICAKSANA OVERSEAS: Posts nine-month loss
Wicaksana Overseas recorded net loss of 93.9 billion rupiah
for the first nine months of this financial year. That was
up over 800 percent from a loss of 11.4 billion rupiah for
the same period the previous year.


ISUZU MOTORS: Net loss bigger than expected
Isuzu Motors Ltd. recorded a consolidated net loss of 22.13
billion yen in the first half of fiscal 2000, up from an
earlier estimated loss of 19 billion yen.

The company attributed the increase loss to sluggish
overseas business, stiffer competition in the domestic
market and the magnitude of fixed costs.  Group net losses
came to 17.52 yen per share.

Isuzu Motors suffered a consolidated pretax loss of 34.01
billion yen, which was also worse than the 19 billion yen
loss the automaker estimated in May.  Isuzu Motors'
consolidated sales came to 724.6 billion yen, compared with
an earlier forecast of 750 billion yen.

This is the first time that Isuzu Motors has released its
consolidated half-year earnings results.  In the April-
September period, the Isuzu Motors group sold 37,098
vehicles in Japan, slightly up from the same period a year
earlier, reflecting recovering demand. Exports were also up
from a year before. But the group's domestic vehicle
business, weighed down by strong competition, failed to
produce profits.

Overseas vehicle sales of the group totaled 134,008 units.
Demand for vehicles was sluggish in Australia and Europe
and the weakness of the Australian dollar and the German
mark adversely affected sales, Isuzu Motors said.  Given
the interim business results, Isuzu Motors said the company
has decided to pass up a midterm dividend payment.

In the full year through March 31, 2001, Isuzu Motors
expects a consolidated net loss of 19 billion yen, compared
to a loss of 104.19 billion yen in the preceding year.
Isuzu also projects it will incur a group pretax loss of 32
billion yen, compared with 68.05 billion yen a year
earlier.  Group sales are expected to rise 1.6 percent to
1.53 trillion yen.

Isuzu said the domestic truck market is expected gradually
to recover, but the company will likely continue to face
severe business conditions given the intense competition at
home and abroad and the continued rise of the yen.  General
Motors Corp. has a 19 percent stake in Isuzu. (Japan Times
Online  28-Nov-2000)

TOKYO SOWA BANK: Takeover talks deadlocked
Negotiations between the Japanese government and an
investment fund led by financier Wilbur Ross are reportedly
deadlocked over the US investor's planned takeover of
failed Tokyo Sowa Bank Ltd.

The report of the deadlock came five months after the state
Financial Reconstruction Commission (FRC) announced it had
picked Ross's Asia Recovery Fund as the buyer for scandal-
tainted Tokyo Sowa.  But the initial agreement was now
likely be scrapped, the Mainichi Shimbun reported
yesterday, quoting informed sources.

In addition to the investor's fund shortage, Ross had also
refused to buy part of Tokyo Sowa's assets in a move
stirring conflicts with the FRC, which wants to reduce the
state's spending for handover of the bank, the report said.
Ross, who initially planned to invest a total of 35 billion
yen (US$318bil) in the bank, had been struggling to secure
funding sources.

The financial authority and the investor would continue
negotiations until the weekend deadline, but hopes for
finalising the talks were fading, the report said.
In case they failed to strike a deal, the government would
scrap its selection of Ross as the winner and kick-start a
fresh tender, it added.

Shinsei Bank Ltd, formerly the collapsed Long-Term Credit
Bank of Japan Ltd, was expected to raise its hand for the
emerging opportunity as it wished to brush up its retail
network through the acquisition, the report said.  As of
June, the US firm was expected to strike the final
agreement with Tokyo by the end of September, with the
transfer of operations hoped to take place next March.

The agreement would have marked only the third outright
takeover of a Japanese bank by foreigners, including the
FRC decision last month to hand over the failed Kofuku Bank
Ltd to Ross' fund. (The Star Online, AFP  28-Nov-2000)


KYONGNAM BANK: Branch closures, layoffs planned
Kyongnam Bank plans to lay off 10 percent of its employees
by the end of this year, as well as closing down 10
branches early next year, as part of its restructuring
plan. The bank submitted a management improvement plan
Tuesday to the Financial Supervisory Service.


MALAYSIAN AIRLINES: Loss maker in stake talks
SAir Group, parent of SwissAir, has been in talks with the
Malaysian Government and loss-making Malaysia Airlines
about buying a stake.  The Swiss airline plans a due
diligence exercise on Malaysian Airline System (MAS), the
carrier's operator, the Business Times newspaper reported.

It quoted Max Bickel, a vice-president of SAir, as
confirming talks took place two weeks ago.  Dutch airline
KLM and Qantas Airways of Australia have also expressed
interest in taking a stake, the paper said. The government
is seeking a foreign shareholder for the airline to improve
its competitiveness. In July it authorised MAS to raise its
limit on foreign shareholdings to 45 per cent from 30 per

About 16 per cent of the stock is in foreign hands. The
biggest stake of 29.09 per cent is held by local company
Naluri.  Naluri has debts of almost M$1 billion (about
HK$2.05 billion) and its chairman, Tajudin Ramli, also the
airline's chairman since 1994, is keen to sell its MAS

Earlier this month, Prime Minister Mahathir Mohamad said
the government was still in talks to buy Mr Tajudin's
shares, with the price thought to be a concern.
The government is expected later to sell part of the stake
to a foreign buyer.  No official confirmation is available
but reports say Mr Tajudin is seeking M$8 per share, the
price he paid in 1994. The share is trading at about

Yesterday, the Asian Wall Street Journal said Bashir Ahmad,
a vice-president of MAS, would become managing director
after Mr Tajudin's buy-out.  MAS posted a net loss of
M$258.57 million in the year to March 31, against a net
loss of M$700 million the year before. (South China Morning
Post, AFP 28-Nov-2000)

RENONG BHD.: Interest costs push it into the red
Renong Bhd., Malaysia's largest industrial group, slipped
into the red in the first quarter of this financial year as
it paid more interest on its debts.

The group, which is involved in construction,
infrastructure, oil and gas, telecommunications and
property development, recorded a loss of RM37.1 million
(S$17.2 million), or 1.6 sen per share, in the first
quarter ended Sept 30, a turnaround from the profit of
RM39.2 million, or 1.8 sen per share, it posted for the
same period a year prior. Sales more than doubled to
RM108.5 million from RM48.2 million a year ago on higher
revenue from its property development division.

The group, Malaysia's largest corporate borrower with RM20
billion worth of debts, lost money because it paid more
interest on its debts this year. Last year, its interest
payments on some debts were waived as it worked out
a debt reorganisation plan. It did not disclose how much it
paid in interest costs this year or last year. (Straits
Times 28-Nov-2000)

TIME ENGINEERING: Posts Q3 net loss
Time Engineering Bhd. recorded a net loss for the third
quarter ended Sept. 30 of 30.4 million ringgit (US$8
million), up from a net loss of 19.5 million ringgit for
the same period the prior year. The company's net loss for
nine months to Sept. 30 was 21.4 million ringgit,
significantly down from the 152.2 million ringgit net loss
for the same period the prior year.

Time is under court protection from creditors while
restructuring debts totaling some 4.81 billion ringgit.
In June, creditors approved its debt restructuring plan,
which included the listing of telecommunications unit Time
dotCom Bhd.


EEI CORP.: To re-finance P500M worth of loans
Construction company EEI Corp. said yesterday it would
restructure some P500 million worth of short-term loans.
The company disclosed that Rizal Commercial Banking Corp.
recently approved a two-year, P500-million bridge loan that
it would use to refinance its short-term obligations until
a syndicated-term loan was in place.

The Yuchengco family controls both EEI and RCBC. EEI said
it would use P223 million of the loan to refinance existing
debts to RCBC while the rest would go to its other
creditors.  Apart from the RCBC loan, the EEI board has
also approved a credit line amounting to P700 million that
the company plans to use as a working capital.

EEI presented to the Securities and Exchange Commission a
consolidated balance sheet as of June 30 this year showing
the effects of its loan restructuring with comparable
consolidated balance sheet. The balance sheet showed the
company had a positive working capital of P186 million.

EEI explained it was disclosing the borrowings to put on
record the company' s program to strengthen its working
capital position by way of assuring its clients of its
financial position and capability. In September, EEI
announced that a joint-venture company, Al Rushaid
Construction Co., was awarded two major construction
contracts in the Kingdom of Saudi Arabia worth over $60

EEI said it won a $52-million contract to provide civil and
mechanical works for the Ethane recovery project of Saudi
Aramco and another $8.5-million deal for a project
involving the mechanical and electrical works for the
expansion of Saudi Arabia's National Pipe Co.

"EEI has pioneered in the Middle East, with various major
projects in the Kingdom of Saudi Arabia over the last 25
years," EEI president Samson Lazo said. "The Middle East is
a niche market for EEI."

The two projects in Saudi Arabia are in addition to EEI's
three ongoing major projects with an aggregate value of $80
million, including the 2,400-megawatt Ghazlan II power
plant worth about $40 million of the Saudi Consolidated
Electric Company awarded by long-time partner Mitsubishi
Heavy Industries of Japan.  EEI's Al Rushaid Construction
is also undertaking the $12.5-million Shedgum gas plant
debottle-necking project of Saudi Aramco due for completion
by the end of the year.

EEI registered consolidated orders and contracts totaling
P3.8 billion in the first semester, higher than the P3.7
billion recorded for the whole of 1999. Consolidated
revenue reached P2.04 billion for the first half of the
year. (Philippine Daily Inquirer  28-Nov-2000)


CENTRAL PAPER INDUS.: Enters debt-restructuring process
Central Paper Industry has entered a debt-restructuring
process under the guidance of the Corporate Debt
Restructuring Advisory Committee (CDRAC). Negotiations with
creditor Siam City Bank have been completed, with
preparation of an agreement for signing being under way.
The company reports that holders of its warrants (CPICO-W1)
could exercise their rights on Dec 15, the notification
period being from Dec 1-14. Each warrant can be exchanged
for one share at 10 baht.

EKACHART FINANCE: Reaches debt-rehab agreement
Ekachart Finance (EFS) has reached a debt-restructuring
agreement with borrowers who had allowed it to take stocks
pledged as collateral. After the transfers on Nov 22, EFS
now had a 41 percent interest -- or 820,000 shares -- in
Plan Estate Co. and 23.3 percent (1.6 million shares) in
Siam Media and Communication.

PROPERTY PERFECT: Review of debt rehab plan set
The Central Bankruptcy Court will review the debt
restructuring plan of Property Perfect on December 1. The
plan originally was submitted to the court on October 19
and the first hearing was set for November 13. That hearing
was postponed to November 21, however, as the court sought
more time to review the case, according to a statement
filed with the Stock Exchange of Thailand. Ten creditors --
-- including Bank of Ayudhya and SCB Asset Management Co
Ltd. -- filed a petition against the debt-restructuring
plan before the November 21 hearing.

ROYAL CERAMIC INDUSTRY: Court approves business rehab plan
The Central Bankruptcy Court issued an order approving the
business reorganization plan of Royal Ceramic Industry
Public Company Limited.

THAI PETROCHEM.INDUS.: Strike likely after debt plan OK'd
After creditors of Thai Petrochemical Industry yesterday
voted overwhelmingly in favor of a $3.2-billion
restructuring plan, union representatives said a strike at
TPI's Rayong plant was likely to be called in the next few
days, leading to potential revenue losses of up to 300
million baht a day.

The pro-plan vote occurred despite protests from 3,000
workers who accused state receivers of bias against the
industrial giant. TPI chief executive Prachai Leophairatana
said after the vote he would lodge an immediate appeal with
the Central Bankruptcy Court. He vowed to continue his
battle against creditors. Mr Prachai, who owns 60% of TPI,
is expected to lose majority control of the firm to

Restructuring talks have dragged on for months in a highly
public battle between Mr Prachai and Effective Planners
over details of the plan, including the sale of non-core
assets and terms of a share buy-back by Mr Prachai from the
banks. The battleground now shifts to the Central
Bankruptcy Court, which on Thursday will hear final reports
from officials of the Legal Execution Department on the
creditor vote.

Ian Melville, a lawyer with Johnson Stokes & Master, which
is representing major creditors, said most creditors were
pleased with the outcome of the vote, although further work
lay ahead. "It has been a three-year process, and it's
dragged on longer than it should. ... We just want to get
the plan started," he said. "It's a mistake to think that
any process has ended. This is only the beginning."

Deja Tulanand, senior executive vice-president of Bangkok
Bank, TPI's largest creditor, said that further delays
aside, the case was expected to be finished in the first
quarter of 2001. Many had expected that yesterday's vote
would be delayed to give both sides more time to hold
talks. A planned creditor vote on Nov 16 was disrupted by a
raucous protest involving some 6,000 TPI staff, including
sporadic violence directed at foreign creditors.

Around 1,300 police officers were mobilised for yesterday's
vote, standing guard since midnight Sunday around the Legal
Execution Department offices in Bangkok Noi. Pol Lt-Gen
Tawatchai Pailee, an assistant police commissioner-general,
said TPI staff assembled peacefully yesterday, with no
incidents reported.

TPI staff began arriving in Bangkok from Ayutthaya, Sara
Buri and Rayong early yesterday in preparation for the
vote. The creditors' meeting, which began at 9:30 am,
started with a vote against proposals to further delay the
meeting. Effective Planners had requested a delay of the
restructuring vote to Dec 6.

Wisit Wisitsora-at, director of the Business Reorganisation
Office, said the second item on the agenda was
consideration of the 27 amendments to the plan filed by TPI
and creditors. Only six proposals, four from Effective
Planners, one by Bank of Ayudhya and one by Tisco Finance,
were accepted, involving technical details of the plan and
minor changes on how creditor claims were classified.

Mr Wisit said after the amendments were cleared, creditors
representing 96.06% of the total accepted debt of 134.4
billion baht voted to accept the plan. Seven banks were
nominated to the creditor committee: Bangkok Bank,
International Finance Corporation, US Export-Import Bank,
Krung Thai Bank, KfW, Citibank and Bank of Ayudhya.

News of the creditors' vote sparked protests by TPI staff,
who had been waiting outside the department grounds,
holding banners and chanting the company's song, We Are
Building the Future. Employees later presented wreaths to
officials at Government House, followed by a rally at Sanam
Luang, where Mr Prachai urged staff to continue "their
fight to protect the company's interests from outsiders."

"I believe that the court will have mercy and listen to our
concerns," Mr Prachai said. He accused receivers of
favouring creditors in arranging the vote procedures.
"I have been deceived by Effective Planners throughout the
entire process," he said. "I plan to submit protests with
the court, until we have exhausted all avenues of appeal."

Pijarn Suparangsri, an attorney for Mr Prachai, echoed the
charges, saying the department had moved to hastily wrap up
the vote and had restricted the rights of some creditors
who were in favour of a delay. Mr Wisit insisted that all
procedures had been consistent with the law. he also said
that any dissatisfied parties could file protests with the
court before Thursday's hearing.

Bundit Rajatanun, acting director-general of the
department, said: "There has been no political interference
or order to expedite this case. We have followed the letter
of the law directly."

The case has been closely watched as a bellwether for
Thailand's progress in corporate restructuring. Tarrin
Nimmanahaeminda, the finance minister, said resolution of
the TPI case would offer benefits to creditors,
shareholders and staff alike, as the firm would be able to
move forward under the restructuring plan.

Maris Tarab, managing director ING Mutual Fund Management
(Thailand), said the successful vote would help give
additional assurances to creditors that their rights would
be protected, helping boost overall investment sentiment.
But one wild card, he said, was employee threats to strike,
which could force a total change in the restructuring plan
and hurt TPI's operations.

Yesterday employee representatives met Effective Planners
in talks mediated by the Labour Ministry in Rayong.
Staff have asked Effective Planners to make guarantees
against asset sales, appoint TPI representatives to help
implement the restructuring plan and draft a compensation
programme for employees who could be laid-off or affected
in the future.

Other requests included a call for a 15% salary increase
starting January, and guarantees on bonuses for this year.
Effective Planners rejected the requests, setting the stage
for a potential strike as early as tomorrow, said
Wachirapunthu Promprasert, TPI's chief financial officer.
A closure of the Rayong refinery would lead to lost
revenues of 300 million baht a day, he said, although he
noted that current stocks were sufficient for 30 days of

Anthony Norman, managing director of Effective Planners,
said the firm was intent on "normalising relationships with
management and workers to assure them that their jobs are
secure." He stressed that planners were ready to look after
the interests of workers, and that a strike was "unhelpful
and unnecessary."

Mr Norman declined to speculate on the future of the
restructuring case, noting that appeals were possible only
on points of law or errors. Shares of TPI yesterday closed
up 10 satang at four baht, helped by speculative buying
after the successful creditors' vote was announced.
Turnover was heavy at 72.44 million baht. (Bangkok Post 28-

UNITED FLOUR MILL: Sells subsidiary to pay losses
The board of directors of United Flour Mill has resolved to
sell 488,900 shares of its subsidiary, United Silo and
Services Co Ltd. The shares represent 24.445 of the 49.945
percent of the company's registered capital it holds.

The buyer of the shares is Metrophos Co. Ltd., which will
pay Bt33 per share for a total sales price of Bt16,133,700.
UFM said the share sale was to reduce the impact of a
substantial loss recorded by United Silo in the year 2000,
which would affect the parent company. The share sale
constitutes a connected transaction, because directors or
shareholders of the buyer are connected with the directors
or major shareholders of the seller.

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

Troubled Company Reporter -- Asia Pacific is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
DC USA. Darryl Henning, Managing Editor, James Philip P.
Jover and Maria Vyrna Ni¤eza, Editors.

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

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

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

                  *** End of Transmission ***