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                               A S I A   P A C I F I C

           Friday, December 1, 2000, Vol. 3, No. 234

                                        Headlines


* A U S T R A L I A *

AUSTRALIAN FIRE COMPANY: Under administration
BONLAC FOODS: Debts prompt subsidiary sale to Cadbury
GEO2: Races to save itself
WATER WHEEL HOLDINGS: ASIC sues founder/director


* C H I N A  &  H O N G  K O N G *

CHINA MOTION TELECOM: Posts H1 net loss
DOF-CHARM LTD: Facing winding up petition
DORMAX LTD: Facing winding up petition
FORTUNE KEEN INVESTMENT LTD: Facing winding up petition
GOLDEN POINT INT'L LTD: Facing winding up petition
HIP KEUNG CONSTRUCTION CO LTD: Facing winding up petition
JOANNA COLLECCTION CO.LTD: Facing winding up petition
KUM WUN HANDBAGS INDUS.CO.LTD: Facing winding up petition
PROJECT SUPPLIES LTD: Facing winding up petition
SHENYANG SEMICONDUCTOR: Guilty of tax fraud
TIANJIN SHIPPING: Dodges collection action


* I N D O N E S I A *

PT ASTRA INT'L: Posts 9-month loss
PT TEXMACO JAYA TBK: Court dismisses bankruptcy suit


* J A P A N *

SUMITOMO CORP.: To liquidate golf resort mgmt.unit
TOKYO SOWA BANK: Sale to US group fails; bidding to reopen


* K O R E A *

CHEJU BANK: Headed for holding company
DAEWOO MOTOR: Creditor OK fresh funds
HANVIT BANK: Headed for holding company
H & S INVESTMENT BANK: Headed for holding company
KOREA MERCHANT BANKING: Headed for holding company
KWANGJU BANK: Headed for holding company
KYONGNAM BANK: Headed for holding company
LG INDUSTRIAL SYSTEMS: To sell stake, paydown debt
PEACE BANK: Headed for holding company
REGENT MERCHANT BANK: To suspend deposit payments
YEONGNAM MERCHANT BANKING: Headed for holding company


* M A L A Y S I A *

MALAYSIAN AIRLINE SYSTEM: Posts RM398.04M 1H net loss
MYCOM BHD: Awaiting nod on revamp
PETRONAS DAGANGAN: Posts RM9M Q2 loss
TECHNOLOGY RESOURCES INDUS.: To restructure bond payments


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

NATIONAL POWER CORP: Incurs P8.5B deficit as of September
VICTORIAS MILLING CORP: Unsecured creditors to own 87%
VICTORIAS MILLING CO: BPI contests rehab plan


* T H A I L A N D *

BANGKOK MASS TRANSIT: To seek debt revamp


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

AUSTRALIAN FIRE COMPANY: Under administration
---------------------------------------------
John Irving of Sims Lockwood and Partners has been
appointed this week as administrator for the Australian
Fire Company. Preliminarily, he blamed cash-flow problems
for the company's difficulties. Irving said he is hopeful
the Adelaide-based fire truck maker can be sold before 25
December 2000, since 12 companies already have expressed
interest.

BONLAC FOODS: Debts prompt subsidiary sale to Cadbury
-----------------------------------------------------
Crushing debt has forced Bonlac Foods to sell its Spring
Valley brand to global soft-drink giant Cadbury Schweppes,
after three years touting the brand as the driver of its
national market plan.

The farmer-owned dairy group has also made a decision on
its long-gestating alliance with the New Zealand Dairy
Board, whereby the latter is to take a 25 per cent stake in
Bonlac and the companies will establish a jointly owned
business with a turnover of $500 million.

Bonlac will sell to Cadbury its Spring Valley fruit juice
and Wave flavoured milk brands for $30 million, and expects
to reduce its debt by the same amount again thanks to the
sale of stock and equipment and a reduction in leasing
liabilities. The move will be a step towards freeing Bonlac
from the weight of $550 million in debt.

Last month the slow progress in consummating the Dairy
Board deal prompted Standard & Poor's to cut Bonlac's
credit rating from BBB/A-2 to BBB-/A-3 and threaten further
downgrades. Under the plan, Wave flavoured milk will still
be processed at Bonlac's UHT plant at Cobden in western
Victoria. Bonlac claimed yesterday its distribution would
be extended under Cadbury.

Bonlac purchased Spring Valley for $23 million three years
ago to provide a national distribution network for Wave.
Under the sale, Bonlac will make 170 Spring Valley
employees redundant. The dairy group has already cut 350
jobs and closed four plants in Victoria this financial
year. Former managing director Mr Phil Scanlan left in
January with a $3.6 million pay-out.

The board also put forward a measure to cut its size from
14 directors to 10 but this motion failed to reach the
requisite 75 per cent majority at yesterday's meeting.
Managing director Mr Alex Sloan said the rationalisation
had cut overheads by 30 per cent, provided $40 million in
productivity gains and $30 million annually in gains from
better yields.

"All together, $70 million of real improvements have been
captured and embedded in this year's budget and at the end
of the first quarter I am pleased to report that we are on
target," Mr Sloan told the meeting.

The NZ Dairy Board will itself vote on the merger plan in
December. Mr Sloan said that under the proposed terms, the
Dairy Board would roll its Australian business into Bonlac
in return for a 25 per cent stake. The combined consumer
business would have $500 million in turnover and lead the
Australian market in branded cheese and dairy spreads.
(Sydney Morning Herald  30-Nov-2000)

GEO2: Races to save itself
--------------------------
Receivers could be called in to failed environmental
technology group Geo2 as early as next Tuesday unless
administrators can come up with an 11th-hour rescue
package.

Geo2 put itself into voluntary administration on Tuesday of
last week, after cash reserves dwindled to just $40,000,
and accumulated debts topped $4 million. The appointment
came a month after efforts to implement a $3.5 million
rights issue stalled, forcing Geo2 to negotiate an
emergency $1.5 million secured loan at a stellar interest
rate of 36 per cent.

At a wake-like annual general meeting in Melbourne
yesterday, administrator David Lockwood said a receiver
could be called in within 10 days of the company being put
into administration if a "commercial arrangement" was not
put to the loan providers.  "Needless to say, any
reconstruction proposal might potentially see conversion of
some of these creditors into equity . . . and shares being
consolidated down into a lower value," he said.

But any such deal is likely to receive only grudging
acceptance from angry shareholders, who have pumped more
than $20 million into the company in two years, but have
seen the share price collapse from 69c in March to 6c when
trading was suspended last week.  The terms of the secured
loan mean the additional equity will be issued to four
companies associated with former executive directors
Charles Laycock and Charles Hider, who quit in June after
Geo2 racked up net operating losses of $26 million in the
previous two years.

Both men were blasted yesterday, as shareholders asked why
Geo2's financial problems were not addressed sooner, and
why substantial "directors exit fees" had been paid. (The
Australian  30-Nov-2000)

WATER WHEEL HOLDINGS: ASIC sues founder/director
------------------------------------------------
The Australian Securities and Investments Commission (ASIC)
filed a civil action against John Elliott on Nov. 27,
contending that Elliott, along with his co-directors,
Bernard Plymin and William Harrison, allowed the flour
milling group Water Wheel Holdings to trade while
insolvent.

The complaint, in the Victorian Supreme Court, asks for
compensation for small creditors totaling $A5 million. The
Supreme Court has the power to remove Elliott from all his
executive positions.

Elliott has reacted angrily to ASIC's investigations,
accusing the body of victimization due to his high profile
in the community. Unsecured creditors of Water Wheel
received only $A0.30 in the dollar when the company folded
in February 2000. Elliott claims that he lost up to $A3
million of his own money in the collapse. Water Wheel
Holdings, meanwhile, is rapidly heading towards bankruptcy.
(Australasian Business Intelligence  29-Nov-2000)


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

CHINA MOTION TELECOM: Posts H1 net loss
---------------------------------------
China Motion Telecom recorded a net loss of HK$237 million
for the first sixth months of this fiscal year ended Sept.
30. That was a sharp turnaround from a profit of HK$54
million for the same period the prior year.

DOF-CHARM 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 Dof-Charm
Limited. A notice of legal appearance must be filed on or
before December 26.

DORMAX LTD: Facing winding up petition
--------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 16, 2001, on the
petition of Lam Chi Woon, Yu Pui Kuen, Ho Suk Hing, Wong La
Man, Li Yu Ping, Lam Hau Yeung Edmond, Chan So So, Ho Ka
Tung and Cheung Ka Pui for the winding up of Dormax
Limited. A notice of legal appearance must be filed on or
before January 15.

FORTUNE KEEN INVESTMENT LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 10, 2001, on the
petition of Tsui Chi Chau for the winding up of Fortune
Keen Investment Limited. A notice of legal appearance must
be filed on or before January 9.

GOLDEN POINT 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 Cheng Ka Man for the winding up of Golden Point
International Limited. A notice of legal appearance must be
filed on or before February 6.

HIP KEUNG CONSTRUCTION CO LTD: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 10, 2001, on the
petition of Tam Tai Hei for the winding up of Hip Keung
Construction Company Limited. A notice of legal appearance
must be filed on or before January 9.

JOANNA COLLECCTION CO.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 Wong Chui Ping for the winding up of Joanna
Collection Company Limited. A notice of legal appearance
must be filed on or before January 16.

KUM WUN HANDBAGS INDUS.CO.LTD: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on February 6, 2001, on the
petition of Tsui Hing Wang Limited for the winding up of
Kum Wun Handbags Industries Company Limited. A notice of
legal appearance must be filed on or before February 5.

PROJECT SUPPLIES LTD: Facing winding up petition
------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on February 6, 2001, on the
petition of Broadway Plastics Limited for the winding up of
Project Supplies Limited. A notice of legal appearance must
be filed on or before February 5.

SHENYANG SEMICONDUCTOR: Guilty of tax fraud
-------------------------------------------
According to a report from AFX News Limited, Shenyang
Semiconductor was found guilty of tax fraud.

TIANJIN SHIPPING: Dodges collection action
------------------------------------------
According to a report from AFX News Limited, Hudong Heavy
has failed to recover 50.2 million yuan from bankrupt
Tianjin Shipping.


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

PT ASTRA INT'L: Posts 9-month loss
----------------------------------
PT Astra International, the country's largest auto maker,
recorded a net loss of Rp273 billion for the first nine
months of this financial year, despite experiencing a sharp
rise in income. Heavy foreign exchange losses contriubted
greatly to the net loss.

Astra's income jumped 104% to Rp20.195 trillion (US$ 2.22
billion) while its operating profit climbed 76 percent to
Rp2.425 trillion in the first nine months of this year
compared with the same period last year. The company
suffered foreign exchange losses of Rp1.9 trillion due to
the fall of the rupiah, according to a company vice
president.

The rupiah depreciated from 7,100 to a U.S dollar to 8,700
in the nine months ending Sept. 30. The company vice
president it will likely suffer more losses in the
remaining months of this year as long as the rupiah
remained weak.  In a positive note, Astra was able to repay
debts totaling US$ 66.7 million and Rp66.3 billion during
the nine month period, however.

PT TEXMACO JAYA TBK: Court dismisses bankruptcy suit
----------------------------------------------------
The Jakarta Commercial Court has dismissed a bankruptcy
suit against PT Texmaco Jaya Tbk filed by PT Ometraco Corp
and the Indonesian Bank Restructuring Agency (IBRA) over
US$5 million of unpaid promissory notes.

Judge Hasan Basrie said he was dismissing the petition
because Texmaco has finalized restructuring of its debts
with creditors, including IBRA. Additionally, the US$5
million in promissory notes on which Ometraco based
its case is being contested by Texmaco in the High Court.
IBRA had also failed to attend earlier hearings, the judge
added. Ometraco lawyer Laudin Napitupulu earlier had said
the promissory notes matured in March 1998.


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

SUMITOMO CORP.: To liquidate golf resort mgmt.unit
--------------------------------------------------
Sumitomo Corp will liquidate its golf resort management
unit. No impact on the company's outlook for the current
fiscal year is expected by the action.

TOKYO SOWA BANK: Sale to US group fails; bidding to reopen
----------------------------------------------------------
The Japanese government cancelled its agreement to sell the
failed Tokyo Sowa Bank to a US investment group led by
Wilbur L. Ross, who revealed that bidding on the bank is to
be reopened.

The deal cancellation was mutally reached by the government
and the investment group after due diligence on the loan
portfolio of Tokyo Sowa turned up more problems than
anticipated. Ross had to ask for more government money to
cover potential losses, which was not agreeable.

Another auction for the bank will be held, and Ross said
his group will participate. Ross added that a decision as
to what the purchase price should be was the main
difficulty. Ross' group had obtained preliminary approval
to buy Tokyo Sowa Bank for about 35 billion yen last June.
The firm  already has sealed a deal to buy another failed
bank in western Japan.

Tokyo Sowa incurred huge losses from loans to companies
made with the understanding they would reinvest the money
in the bank.


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

CHEJU BANK: Headed for holding company
HANVIT BANK: Headed for holding company
H & S INVESTMENT BANK: Headed for holding company
KOREA MERCHANT BANKING: Headed for holding company
KWANGJU BANK: Headed for holding company
KYONGNAM BANK: Headed for holding company
PEACE BANK: Headed for holding company
YEONGNAM MERCHANT BANKING: Headed for holding company
-----------------------------------------------------
The Korean government intends to place nonviable banks --
Hanvit, Peace, Kwangju,Cheju and Kyongnam  -- under one
holding company next year, along with weak merchant
banks Yeongnam Merchant Banking, Korea Merchant Banking,
Central Banking and H&S Investment Bank.

Beginning next February, the institutions' branch offices
will be reshuffled. Integration is to be nearly completed
by the end of next year, with the individual identities of
the banks fading away. The plan aims to minimize the side
effects of combing the insolvent institutions, and is a
stark departure from previous plans to preserve each
bank's standing as an affiliate.

"The government had considered placing regional banks under
a separate holding company or use purchase and assumption
(to sell them off to healthy institutions), but those
options were deemed impractical when considering the
need for consistency and effectiveness in government
policy," said a Finance and Economy Committee member
Thursday at the National Assembly. "General assessment is
that provincial banks cannot survive under a separate
holding company, no healthy banks would want to assume
insolvent banks and it would be unfair to dump an insolvent
organization onto a healthy bank."

To solve the problems of having several insolvent
institutions under one roof, the banks will be reassigned
retail and wholesale activities and merchant banks will
become investment banks, he said. In related news, Finance
and Economy Minister Jin Nyum said Wednesday that banks
which received government bailouts will be handled
according to holding company procedures and the government
will do what it can.

"Jin's remark could mean the government will move ahead
with the plan to place state-run financial institutions
under a holding company but will minimize the side-effects
pointed out by scholars and foreigners," a government
official said. "It is crucial to unite these institutions
and transform them into a new financial institution as soon
as possible. The government will not inject further public
funds if their labor unions disagree with the restructuring
plan. (Asia Pulse  29-Nov-2000)

DAEWOO MOTOR: Creditor OK fresh funds
-------------------------------------
Creditors have approved a huge new cash lifeline for Daewoo
Motor Co. to keep the bankrupt South Korean carmaker
afloat, bank officials said.

Daewoo Motor and its contractors would receive 729 billion
won (613 million dollars), with 90 billion won to be
injected into the auto company by the end of this year.
Creditor banks are in negotiation with General Motors Corp
of the United States and Fiat SpA of Italy over the sale of
Daewoo. The banks say GM is still interested despite Daewoo
Motor's continuing problems.

"The proposed injection of emergency loans was approved at
a meeting of 24 creditor banks," said an official at state-
run Korea Development Bank (KDB), a key creditor of Daewoo
Motor. "Contractors will receive 285 billion won while 354
billion won in operational capital will go to Daewoo Motor
for next year's operational funds."

Daewoo Motor asked for fresh loans after its union accepted
job cuts to keep the company alive. KDB said the union's
consent helped creditors agree to new loans. Daewoo Motor
filed for court receivership on November 10, two days after
being declared insolvent.

A court in the western city of Inchon is to decide by
December 9 whether or not to allow Daewoo Motor court
receivership. Much of Daewoo Motor's operations have been
suspended with creditors reluctant to give new loans.

The company has proposed a 20 percent cut to its 17,000-
strong workforce. But more discussions will be held by
unions, management and creditors on the number of job
losses. The labor consent for layoffs is considered crucial
to negotiations with General Motors. KDB's Governor Uhm
Rak-Yong said Tuesday the US giant remained interested in
acquiring Daewoo Motor.

"The labour union's agreement to restructuring removed the
biggest hurdle to the sales talks," Uhm said.

GM completed a due diligience study last month. But its
decision has been held back due to Daewoo Motor's
bankruptcy, prompting speculation that GM may revise its
bid. The court last week froze the company's assets and
liabilites to ease fears of a chain of bankruptcies amongst
parts suppliers. Daewoo Motor's main plant has been shut
down since November 8, causing four contractors to
collapse.

The company has 500 contractors with some 300,000 employees
and another 3,000 sub-contractors. Its unpaid bills for
parts is expected to reach one billion dollars by early
next year. Daewoo Motor, once South Korea's second largest
car maker with an annual capacity of two million units, has
been sinking fast since its parent Daewoo group collapsed
last year under 80 billion dollars of debt in the world's
biggest bankruptcy.

The auto company has assets of 17 trillion won (15 billion
dollars) and debts of 18 trillion won. It suffered a one
trillion won loss in the first half of this year, while
creditors poured in 2.5 trillion won in emergency funds.
(Agence France Presse  29-Nov-2000)

LG INDUSTRIAL SYSTEMS: To sell stake, paydown debt
--------------------------------------------------
LG Industrial Systems (LGIS) intends to sell 16 million
shares iin LG Capital -- 22.86 percent of its 31.9-percent
stake -- to Warburg Pincus at 31,250 won per share,
realizing projected sales proceeds of 500 billion won,
which will be put into its account next month and used to
repay debts.

The deal will bring it 383.5 billion won in sales profits,
according to the company, which will return its balance
sheet to the black this year. It also expects its debt
ratio to improve from 674 percent (as of September this
year) to 350 percent at the end of the year

"The debt repayment will cut 120 billion won annually from
our financial expenditures, and financial structure will
improve far more once the company sells off the remaining
stake and other securities worth 500 billion won and real
estate holdings," a company manager said.

The company expects its sales turnover to increase 24
percent this year to reach 800 billion won thanks to brisk
sales in electrical and automated equipment. (Korea Herald
30-Nov-2000)

REGENT MERCHANT BANK: To suspend deposit payments
-------------------------------------------------
Regent Merchant Bank -- now suffering from an insolvency
crisis -- will postpone payment of customer deposits until
the middle of next month.

"The payment of deposits to customers will be halted
temporarily till mid-December when Regent Merchant receives
a financial aid of 300 billion won from Korea Online," the
company said in a press release.

To secure the funds, Korea Online, Regent Merchant's
holding company, will sell its stake in merger-and-
acquisition specialist MCI Korea and shell out around 100
billion won from its coffers.  Regent Merchant will also
sell off its liquid assets and collect short-term loans,
the press release said.

Meanwhile, Regent Merchant is likely to avoid business
suspension as corporate clients exercise restraint in
withdrawing their funds from the troubled institution, a
senior government official said yesterday.

"It is true Regent Merchant Bank has liquidity problems but
it has obtained consent from corporate customers to delay
deposit withdrawals till it secures funds," Ahn Young-hwan,
director of the Financial Supervisory Service, quoted
Regent Merchant President Hong Joo-kwan as saying.

Ahn said that 240 billion won in deposits had been
withdrawn from Regent Merchant following a financial
scandal involving its holding company Korea Online.
President Hong reported to the FSS that the merchant bank
will pay deposits to individual customers as soon as it
raises funds, and it will try to minimize customer losses,
the FSS official said.

"Regent Merchant is now discussing ways of receiving
financial aid with its controlling shareholder," Ahn said.
"It is expected to take at least two weeks for the merchant
bank to get a cash injection.

Noting that Regent Merchant has not asked the FSS to take
measures against a deposit run, the official said that the
financial watchdog has no immediate plan to take any action
against the troubled institution.  With James Mellon,
president of iRegent Group, suspected of being involved in
a stock price rigging case, depositors of Regent Merchant
had rushed to take out their money, causing the institution
to fail to meet obligations. iRegent is the flagship of
Korea Online.

Industry sources said that the merchant bank had not met
customer demands for deposit withdrawals worth about 100
billion won.  Meanwhile, the Korea Stock Exchange
temporarily suspended the trading of Regent Merchant shares
yesterday morning on rumors that the financial authorities
had suspended its operations. In a public notice to stock
investors, Regent Merchant denied the rumors. (Korea Herald
30-Nov-2000)


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

MALAYSIAN AIRLINE SYSTEM: Posts RM398.04M 1H net loss
-----------------------------------------------------
Malaysian Airline System Bhd (MAS) posted a net loss of
RM398.04 million for the first six months to Sept 30, 2000,
a reversal from a net profit of RM275.01 million last year.

Announcing its quarterly results to the Kuala Lumpur Stock
Exchange this evening, MAS said costs, particularly fuel,
remained a concern for the current year.  For the first six
months of the financial year, the national carrier recorded
a pre-tax loss of RM391.41 million, compared with a profit
of RM286.83 million for the corresponding period in the
last financial year.

However, turnover for the six months was 20 per cent higher
at RM4.57 billion versus RM3.81 billion for the same period
last year.  The group suffered pre-tax losses in nearly all
its major operations. Airline operations recorded a pre-tax
loss of RM291.65 million, cargo at RM88.32 million,
engineering services at RM2.77 million, and catering
services at RM101.88 million. Its other segments, however,
reported a pre-tax profit of RM10.35 million.

For the second quarter, the group recorded a net loss of
RM270.03 million, compared with a net profit of RM220.89
million in the corresponding quarter.  It posted a pre-tax
loss of RM265.65 million for the second quarter ended Sept
30, 2000, on the back of a RM2.42 billion turnover.

According to MAS, for the second quarter and six months
under review, capacity expanded 10.1 per cent to 2.05
million and 16.3 per cent to 4.15 tonne kilometres
respectively. Traffic grew 10.9 per cent to 1.39 million
for the second quarter and 20.7 per cent to 2.70 million
tonne kilometres for the six months.

"Consequently, overall load factors for the second quarter
improved by 0.7 percentage points to 67.6 per cent with
passenger and cargo load factors of 77.7 per cent and 55.2
per cent respectively," said MAS. (The Edge Daily  29-Nov-
2000)

MYCOM BHD: Awaiting nod on revamp
---------------------------------
Mycom Bhd group hopes to get Securities Commission approval
for its restructuring program by year-end, according to
Mycom legal executive Ng Ju Siong.

The scheme, which was put together by the Corporate Debt
Restructuring Committee and Pengurusan Danaharta Nasional
Bhd, was finalized last May. Mycom needs to get the SC
green light first before implementing the restructuring
program that was expected to be completed next year, Ng
told reporters in Kuala Lumpur, after the AGMs of Mycom and
its associate company Olympia Industries Bhd.

Among others, the proposals include a capital reduction
that would see Mycom's existing issued and paid-up share
capital of RM392.682mil comprising 392.682 million RM1
shares reduced to RM196.341mil comprising 392.682 million
ordinary shares of 50 sen each by cancellation of 50 sen of
the par value of each share.

Subsequently, every two 50 sen shares would be consolidated
into one RM1 ordinary share.  The proposed capital
reduction and consolidation were meant to minimise Mycom's
accumulated losses.

Ng said the group also planned to dispose of some of its
palm oil plantations in Tawau, Sabah, the proceeds of which
would be used to pay part of Mycom and Olympia debts
amounting to RM1bil.  He said once the SC approval was
granted, the group might re-commence construction work of
the Duta Grand Hyatt in KL on a smaller scale.

"We don't have a definite date (to re-start the
construction) ... even if we (continue to) build there is
no market at the moment," he added. "It has potential, but
at the moment we don't really want to touch that
potential."

Mycom has so far spent about RM200mil on the hotel project
which has a total development cost of about RM550mil.
For the financial year ended June 30, 2000, Mycom recorded
a pre-tax loss of RM91.9mil from RM382.1mil loss
previously, while turnover slipped to RM320.5mil from
RM590.8mil. (Star Online  30-Nov-2000)

PETRONAS DAGANGAN: Posts RM9M Q2 loss
-------------------------------------
Petronas Dagangan Bhd sustained a RM9.41 million net loss
for the second quarter of this financial year ended Sept.
30. The loss was in sharp contrast to the net profit of
RM45.85 million it posted in the same period last year.

Turnover for the second quarter was up, however, at RM1.71
billion compared for the second quarter this year compare
to RM1.27 billion for the second quarter last year. Net
profit for the six months ended Sept. 30 was RM83.75
million on a turnover of RM3.10 billion. That was down from
a net profit of RM88.66 million last year for the same
period on a turnover of RM2.37 billion.

"The loss recorded in the second quarter was due to higher
product costs as a result of increased crude oil prices and
the lag effect of the automatic pricing mechanism," the
company explained in a statement to the Kuala Lumpur Stock
Exchange.  The government introduced the pricing mechanism
in 1983 for regulating retail prices of liquefied petroleum
gas, petroleum and diesel.

TECHNOLOGY RESOURCES INDUS.: To restructure bond payments
---------------------------------------------------------
Technology Resources Industries Bhd is proposing to
restructure its bonds, overdraft and revolving credit
facility by recapitalizing the interest accrued into the
principal amount.

Under a complex restructuring scheme, it is proposing to
issue 86 million new TRI shares as settlement of the
interest payable, according to the company's statement to
the Kuala Lumpur Stock Exchange today.  Under the proposed
recapitalization, the premium and interest on the bonds and
loans would be:
* The premium of US$97.34 million as of Oct 29 last year on
the US$200 million nominal value 10-year unsecured zero
coupon bonds due 2004;
* On the US$175 million, 10-year 2.75 per cent convertibles
bonds, the premium payable of US$58.34 million and unpaid
interest of US$4.81 million up to Nov 28 last year;
* Capitalization of the interest accruing from Sept 1 this
year of a RM50 million overdraft and revolving credit
facility from Danaharta Urus Sdn Bhd; and
* Interest will be based on the six-month London Interbank
Offer Rate (Libor) plus a 3.75 per cent per annum,
compounded semi-annually.

Under the second stage of the recapitalization, the
principal amount of each bond will be further increased to
reflect the capitalisation of interest from the initial
prepayment date at the six-month Libor plus 3.75 per annum.
Interests from the Danaharta loan shall be capitalised as
part of the outstanding Danaharta loan.

TRI has also proposed the maturity of the zero coupon bonds
and 2.75 per cent bonds be brought forward to May 29, 2002
from Oct 31, 2004 and Nov 28, 2004, respectively.  The
bonds and zero coupon bonds were redeemable on Oct 29, 1999
and Nov 28, 1999, respectively.  The company is also
proposing that 86 million new TRI shares, which were
previously set aside for the conversion of the bonds under
their original terms, be issued as settlement of the
interest payable.

According to TRI, the slowdown in the regional economy and
the depreciation of the ringgit against the US dollar had
affected the ability of both TRI and its subsidiaries to
generate sufficient cashflow to repay the bonds and settle
their other debts.

The company is hopful that the proposed restructuring would
allow TRI to reschedule repayment of the outstanding
amounts under the bonds and Danaharta loan until May 29,
2002 as well as enable TRI to issue shares in the company
to satisfy its interest obligation on the bonds and
Danaharta loan in order to strengthen the group's cash flow
position. (The Edge Daily  29-Nov-2000)


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

NATIONAL POWER CORP: Incurs P8.5B deficit as of September
---------------------------------------------------------
National Power Corporation has reported that its cash-flow
deficit hit P8.5 billion in the first nine months of the
year ending September 30, compared to P2.5 billion in the
same period last year.

Napocor president Federico Puno said the higher deficit was
due to the peso depreciation which bloated the company's
interest dues. Puno said interest payments on its dollar-
denominated debts rose by 18% to P11 billion during the
nine-month period from P9.3 billion a year ago.

Puno said about 30% of Napocor's P46-billion budget for
debt servicing for the January-to-September is made up of
interest payments. The peso fell to a 32-month closing low
in September at P46.310 against the US dollar after
currency dealers scampered to buy the greenback on fears of
slower dollar inflow.

Earlier reports said 90% of Napocor's debts are denominated
in foreign currencies.  Under Napocor's mandate, it is
allowed to recover costs from foreign exchange movements
through adjustment in power rates, but it does not cover
interest payments on its debts. In order to plug the
deficit, Puno said Napocor has adopted cost-cutting
measures by reducing the use of expensive oil-fired power
plants. (ABS-CBN News.com  30-Nov-2000)

VICTORIAS MILLING CORP: Unsecured creditors to own 87%
------------------------------------------------------
Unsecured creditors of beleagured Victorias Milling Corp.
(VMC) will end up owning up to 87% of the sugar miller if
the Securities and Exchange Commission (SEC) approves its
alternative rehabilitation plan.

In an interview, VMC management committee (mancom) vice-
chairman and East West Banking Corp. executive vice-
president Gerardo Anonas said they are looking at
implementing the rehabilitation plan "within two to three
months."

"Hopefully, before the end of the year we get the SEC's
approval," he said. The VMC management and creditor banks
have been trying to come up with a viable rehabilitation in
the last three years.

VMC's debts have ballooned to 6.55 billion Philippine pesos
($132.08 million at PhP49.59=$1) from the PhP5.2 billion
($104.56 million) posted three years ago. Of this amount, a
total of PhP3.9 billion ($78.64 million) is unsecured while
PhP1.3 billion ($26.23 million) is backed by collateral.

Under the rehabilitation plan approved by the management
committee, PhP1.1 billion of the loans to 25 unsecured
creditor banks will be converted into direct equity in VMC,
equivalent to 70% of the company.  Mr. Anonas added PhP2.4
billion of VMC's debts will become convertible notes, with
a 15-year term. The notes will earn an 8% annual interest,
with the interest and principal payable at the end of the
15th year.

On the third year up to the seventh year, banks have the
option to convert the notes into equity in the bank, he
said.  "If all the notes are converted into equity, clean
creditors will end up owning 87% of VMC," Mr. Anonas said.
"The repayment plan is 15 years, but if there is excess
cash flow, creditors will be paid. The 15 years can be
shorter," he added.

The rehabilitation plan also calls for the election of a
new 11-member board. The original stockholders will have
three board seats, the secured creditors will have one seat
while the unsecured creditors will get seven, Mr. Anonas
said.

"Part of the plan is to look for an acceptable manager and
raise PhP300 million to finance operations," he said. "We
could raise it elsewhere, through a joint venture or equity
partner or through loans and advances... The firm will be
able to operate more efficiently or generate cashflow... If
we reduce the debt of VMC, its value will automatically
improve."

Mr. Anonas said there are still companies which are
interested in VMC, but nothing will be finalized until the
rehabilitation is started.  He said those interested want
to go into a joint venture with the creditor banks.
(Business World  30-Nov-2000)

VICTORIAS MILLING CO: BPI contests rehab plan
---------------------------------------------
The Bank of the Philippine Islands has asked the Securities
and Exchange Commission to junk the alternative
rehabilitation plan prepared by the management committee
for cash-strapped Victorias Milling Co. Inc., saying the
plan did not have the support of the majority of the sugar
firm's creditors.

In its motion filed with the SEC, BPI said the motion to
approve the management committee-crafted rehabilitation
plan should be denied because 58 percent of the creditors
of Victorias had objected to the plan.  BPI also said that
Allied Bank and Manulife, which represented 46.71 percent
of the secured creditors rejected the proposed
rehabilitation plan.

Metropolitan Bank and Trust Co., representing 11.29 percent
of the secured creditors, had also thumbed down the
rehabilitation plan because it did not include P27.7-
million additional obligations arising from the refined
sugar delivery orders. The issue on the RSDOs has yet to be
resolved by the SEC since the creditors and management of
Victorias continued to be at loggerheads.

Citing Section 4-23 of the SEC's Corporate Recovery rules,
BPI said "no alteration or modification of the approved
rehabilitation plan shall be allowed if opposed by a
majority of any class of creditors.  It would be recalled
that the SEC panel hearing the case of Victorias had
expressed hopes that Victorias might soon be rehabilitated
since majority of the sugar firm's creditors had already
given their nod to the proposed recovery program, except
BPI whose claim represented 35.5 percent of Victorias'
secured creditors.

BPI claimed that the alternative plan 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.  It also raised doubts over VMC's
chances of securing a strategic partner as the source of
the P300-million capital infusion was not identified. The
plan merely stated that the capital infusion will come
either in the form of equity or cash advances.

"If the money would be in the form of cash advances, it
would not improve the cashflow of VMC because it would also
be paid within a period of three to five years. In short,
repayment of these cash advances would also drain the
cashflow of VMC," BPI said.

The mancom 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 the 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 P300 million cash requirement 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.

The approved quasi-reorganization of Victorias where the
par value would be reduced from P10 per share to P1 per
share would remain. The authorized capital stock will be
increased to 4.6 billion shares instead of the original 2.5
billion shares. From the new capitalization, 495.96 million
shares will be issued to existing shareholders or at the
rate of 2.91 shares for every one share held. (Manila Times
30-Nov-2000)


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

BANGKOK MASS TRANSIT: To seek debt revamp
-----------------------------------------
Bangkok Mass Transit System Plc (BTSC) expects to wrap up
in the first quarter of next year a plan to restructure the
company's Bt35 billion debt, mostly through payment
rescheduling and interest rate reduction.

"We hope that the official negotiations will start around
January," said Keeree Kanjanapas, chief executive of the
skytrain operator.

He said unofficial talks with creditors are already
underway, based on BTSC's latest financial projections.
Under the borrowing plan based on the projection of 600,000
skytrain commuters daily, BTSC was to repay principal from
2002 to 2008.  However, after almost one year of operation,
the number of commuters has reached only about 200,000 per
day.

BTSC feels that the principal repayment period should be
extended to between 10 and 15 years while the interest rate
should also be adjusted according to the company's ability
to pay.  Despite the company's unimpressive performance,
Keeree ruled out BTSC asking creditors to convert loans to
equity.

"The company is still able to make money. We just need an
appropriate repayment timeframe," he said.

BTSC is now adopting every strategy possible to increase
the number of commuters. It has set a Bt250 million
marketing budget to increase the number of users to 300,000
a day next year.  Keeree said that BTSC operates at a
profit even at 200,000 commuters a day, with average
monthly revenue of Bt120-Bt125 million, minus Bt60-Bt70
million for operating costs.

However, if the interest expense of Bt8 million a day is
factored in, BTSC is still in financial trouble.  "We are
now paying only 30 per cent of the full interest cost to
keep the company out of creditors' non-performing loan
books," he said.

BTSC is also pinning its hopes on bagging the US$250
million (Bt10.9 billion) contract to construct the
extension of the skytrain route. While the government has
not yet approved the extension, the company has already
come up with plans to finance the construction. Keeree said
that if awarded the contract, BTSC would seek a listing on
the stock exchange and increase the amount of its planned
initial public offering (IPO) , or find a partner.

The company's IPO has been delayed for a year due to the
bearish market sentiment. But Keeree said the company would
be ready to raise funds through the stock market
immediately after it is awarded the construction project.
"The extended part would improve the service network and
increase revenue. That would help us meet loan repayment
schedules," he said. (The Nation 30-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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