TCRAP_Public/001204.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

           Monday, December 4, 2000, Vol. 3, No. 235


* A U S T R A L I A *

AIRPORT RAIL LINK COMPANY: Goes into receivership
COMPASS II: Liquidators mail payments to creditors
E-TAILER DSTORE: Harris Scarfe launches takeover bid
HUTCHINSON TELECOMM.: Shares fall further
NESTLE CO.: Closes plant, silent on job losses
SATELLITE GROUP: Pink ink turns red
SURF DIVE`N SKI: Saved from a wipeout

* C H I N A  &  H O N G  K O N G *

CA PACIFIC FINANCE: Liquidators seek court direction
CA PACIFIC SECURITIES: Liquidators seek court direction
TIANJIN SHIPPING CO.: Escapes 50.2M yuan judgment
ZHENGZHOU BAIWEN: To restructure

* I N D O N E S I A *

NAPAN GROUP: Only one subsidiary pays debts
PT DAYA GUNA SAMUDERA: Won't make full $225M debt payment
PT INDOCEMENT TUNGGAL: Weak rupiah inflicts heavy losses
PT TIRTAMAS COMEXINDO: IBRA protests court decision

* J A P A N *

KOFUKU BANK: Still going to Ross-led investment fund

* K O R E A *

DAEWOO MOTOR: Court approves receivership petition
DAEWOO MOTOR: Sales sink 50% in wake of bankruptcy
HYUNDAI ELECTRONICS: FSS to allow excess credit provision
KOREA EXPRESS: To accelerate restructuring
SAMSHIN LIFE INSURANCE: Designated as insolvent

* M A L A Y S I A *

FIMA CORP: To repay debts with tenancy-termination funds
GANAD CORP: Auditors find discrepancies
IDRIS HYDRAULIC: Posts nine-month loss
MBf HOLDINGS: Posts 9-month loss

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

JADE BANK: Depositor sues execs for fraud
NATIONAL STEEL CORP.: Liquidator seeks OK to operate
PHIL.TELE. & TELE.: Creditor banks agree to rehab plan

* T H A I L A N D *

DATAMAT: To liquidate 10 subsidiaries
LOXLEY: S'holders approve debt rehab plan
THAI PETROCHEM.INDUS.: US$3.8B debt deal stalls


AIRPORT RAIL LINK COMPANY: Goes into receivership
Sydney's Airport Rail Link Company (ARLC), owned by
Transfield ALC, went into receivership on 30 November 2000.
The $A900 million railway links Sydney's central business
district (CBD) with Sydney Airport. ARLC defaulted on loan
repayments to the National Australia Bank (NAB). KPMG
Corporate Recovery managing partners Lindsay Maxsted and
Tony McGrath have been appointed as receivers and managers
for Airport Rail Link. The New South Wales Government has
no immediate plans to assist Airport Rail Link financially.

COMPASS II: Liquidators mail payments to creditors
Liquidators have mailed settlements to creditors of failed
airline Compass II. A return of $A0.3206 on the dollar was
paid to a total of 35,000 creditors, including ticket
holders, in late November. PricewaterhouseCoopers
liquidator Richard Barber explained in an accompanying
letter that all employee claims had been met in full, and
that the return marked the completion of the liquidation.
The payment, he noted, was the first and final one. A
statement in March 2000 foreshadowed the payments to
unsecured ticket holders and service creditors.

E-TAILER DSTORE: Harris Scarfe launches takeover bid
Discount department store group Harris Scarfe has launched
a takeover offer for cash-strapped e-tailer dstore. Rumors
that have not been confirmed have the bid totaling about
$A3 million (US$1.58 million). David Brooks, chief
operating officer of Harris Scarfe's e-business division
Camworks, said the company wants to inject some of its
financial discipline into dstore to help revive it. So far,
about 70 percent of dstore's shareholders have accepted
Harris Scarfe's offer.

HUTCHINSON TELECOMM.: Shares fall further
Shares in mobile phone operator Hutchison Telecommuni-
cations Australia fell to another record low Friday,
crystallising a 24 per cent fall for the week, despite its
denying that its major shareholders were selling down their

The family of Hutchison managing director Mr Barry Roberts-
Thomson owns about 12 percent of the carrier and Hong Kong
conglomerate Hutchison Whampoa 58 percent. Fund manager
Bankers Trust has about 8 percent.

Hutchison yesterday issued a statement saying, "The company
advises that Mr Roberts-Thomson has confirmed that his
family has no intention of reducing its shareholding in the
company. The company has no reason to believe that its
parent company, Hutchison Whampoa Ltd intends to reduce its

The shares have also been hit on talk that the carrier was
looking at raising fresh equity to fund its new mobile data
network. Hutchison shares dropped to a record low of $1.84
before finishing at $2.01 with more than 4.7 million shares

It's the lowest close since its $300 million float in
August 1999. It is the first time that the shares have
closed level with its retail issue price - institutions
paid $2.30 a share in the float. The shares are now 42 per
cent below the $3.45 price investors paid in May during the
carrier's $702 million rights issue.

Funds raised by the rights issue were used to pay for the
spectrum that Hutchison will use to build a mobile phone
network for data use only. It is understood that the group
is close to choosing the vendor to build the network, which
Mr Roberts-Thomson has said would cost $1 billion to build.
US telecom equipment supplies Lucent Technologies and
Motorola are among the front-runners for the Hutchison

"I think the market was spooked that these guys may be
coming back to the market to raise some cash to build the
network," said one telecom analyst. "Everybody knows they
are close to making a decision on the vendor. So they are
going to need to finance it somehow."

But Hutchison may look to other ways of financing the
construction costs of its new mobile network, such as
vendor financing or loans from its financially strong
parent or bank loans. Hutchison is already spending $500
million on building its Orange One network, one of the
first in the world that acts like both a normal home phone
and a mobile phone. (Sydney Morning Herald 02-Dec-2000)

NESTLE CO.: Closes plant, silent on job losses
Nestle Co. is refusing to say how many jobs have been lost
with the closure of its coffee plant at Dennington, near
Warrnambool, on Thursday.

Nestle said the factory was no longer commercially viable
and would have to be relocated. More than 100 people were
employed there.  But the company refused to return calls
yesterday to answer questions as to where the plant would
be relocated and how many lost their jobs. Its milk
processing plant remains open there.

In a statement released in June, Nestle said the milk plant
was capable of being upgraded to world standards, but the
coffee plant had reached the end of its commercial life.
At the time, Nestle Corporate Services general manager
Peter Kelly said the company had a strong link with the

The future of the Dennington operation was in milk
products, he said, and restructuring of that plant would
help the firm and the community.  The closure comes as
other Victorian workers battle to keep their jobs.

Email workers at the Chef plant in Brunswick have decided
to hold a rally on December 10 in a last effort to stop a
relocation to South Australia.  More than 520 jobs will be
lost with the relocations. Only three workers will move
interstate.  The workers want the firm put on the market
rather than moved. (The Australian 02-Dec-2000)

SATELLITE GROUP: Pink ink turns red
Sex, property, fast cars and screaming matches between some
of Sydney's leading gay business identities -- every
ingredient has been part of the very public demise of
Satellite Group.

Satellite was a fledgling property development and
publishing empire once valued at $40 million and considered
an icon for gay and lesbian communities around the nation.
In short, it was the first corporate attempt to tap the
clout of moneyed homosexuals and take it straight -
financially, at least.

"The gay and lesbian community has made a huge impact with
the gay mardi gras," says one of Satellite's major
investors.  "We had hoped that through Satellite we would
raise our profile and respectability in the business world.
Now all our hopes have been dashed."

And of all the personalities involved, none has felt
Satellite's collapse more acutely than Kerryn Phelps. The
president of the Australian Medical Association and a
prominent lesbian, Dr Phelps held the chairman's spot for
11 months before resigning in anger.

"It has been a painful experience," Phelps says in her
first interview about the Satellite disaster. "I have
learnt a tremendous amount and know a lot more about the
finer details of corporate law than I ever did before."

Phelps was wooed to Satellite by founder Greg Fisher to be
the respectable, well-known face of the world's first
listed pink company.  But the fanfare that marked the
company's launch soon faded. Satellite's share price dived
from around its 50c issue price to 15c. Word got out about
boardroom skirmishes between Phelps and Fisher.

Shortly after, trading in Satellite shares was frozen.
Phelps called in companies watchdog the Australian
Securities & Investments Commission. Her concerns centred
on Fisher's conduct as managing director and the company's
financial health.  His position untenable, Fisher left
Satellite in July after ASIC investigated his business

The watchdog then took him to court and froze his personal
assets, including a black Porsche Boxster and a $500,000,
46-foot luxury power cruiser.  Fisher was replaced by
George Markos, an executive previously in charge of
Satellite's financial planning division.

Phelps handed in her notice to the board in August after
her fellow directors vetoed a plan to place the company in
the hands of a voluntary administrator. Phelps may have
been unaccustomed to some of the practices of big business,
but her sense of Satellite's predicament was entirely

Very little is left of the $25 million cash raised in the
September 1999 float. Exactly where the rest of the money
has gone has been foremost in the mind of KPMG
administrator Tony McGrath.  On Monday, McGrath will pick
over the bones of Satellite and sell one of its few
remaining assets - the titles of a handful of explicit gay
newspapers and magazines.

They include Outrage and free tabloid newspapers Capital Q,
Melbourne Star Observer, the Brother Sister papers in
Victoria and Queensland, Adelaide GT and Perth's Westside
Observer.  Phelps and her partner, Jackie Stricker, lost
close to $50,000 buying Satellite shares. Staffers at the
company's media arm lost their jobs last Friday and are
still seething over the outcome.

Shannon Shipley, the former editor of Outrage, a gay
magazine title up for sale on Monday, believes misman-
agement triggered the company's collapse.  "Clearly the
company was led by someone who was not qualified," he says.
"It takes more than a gay playboy posturing around to run a
company. It is insulting that while all of us have lost our
jobs, he is swanning around the city in his black Porsche,
sipping coffee at the California cafe on Oxford St, with a
parking ticket on his car.

"We have lost our jobs, careers and livelihood and someone
has to be responsible for that. None of us have glorious
apartments or flashy cars," he added. "The whole saga has
been shocking and disheartening. Collectively, the gay
community believed that Satellite would be different and
forge a new direction. Now all the workers got screwed over
and it was not our fault."

Shipley claims that he is owed about $4500 for six weeks of
holiday pay and between $1500 and $2000 for superannuation
contributions.  "It is a very sad outcome for the gay
press," Phelps says. "The future of the gay press has to be
responsibly guarded and independently run by the community.
I have indicated that I am prepared to assist in whatever
capacity I can but I cannot buy the gay newspapers."

Tony McGrath says it is common in most insolvent companies
that employees are owed a lot of money. He says Satellite's
books are in an appalling state and its records of
financial transactions are "indecipherable." Perhaps the
most serious issue facing the KPMG executive is the charge
that money - between $300,000 to $500,000 - is missing from
the company's superannuation fund.

Satellite also has very few assets in its own name.
Sydney's Beresford and Beauchamp hotels, due to be
auctioned later this month, are in the hands of mortgagees.
Since Satellite has no equity in either properties, the
administrators are unable to recover any cash from the

Company cars, including an S500 Mercedes-Benz driven by
Satellite executive director Greg Gahl, are leased and if
the loans are not met, the leasing company can take
possession of the car. It was previously driven by Fisher.
The holding company, Satellite, may be worth some money and
at some stage will also be sold by the administrator.

A report on individual board directors will be also be
compiled and submitted to ASIC.  Court proceedings over
allegations that Fisher used Satellite's funds for his
private business activities have been scheduled to be heard
in the NSW Supreme Court this Friday.

Fisher insists he wants to clear his name as he has had "a
lot of allegations thrown at me for the last five months".
Stylish and quick to lay on the charm, Fisher asserts with
all the confidence in the world that he is looking forward
to ASIC's investigation and is willing to assist and
"answer in full all the allegations that have been raised."

Meeting the former Satellite chief face to face is a stark
contrast to the private side witnessed by colleagues.
Informed sources close to the company claim that Fisher ran
his business by fear. He intimidated his staff and if they
did not comply, he would threaten them with the sack.
With the company now in the hands of an administrator,
Phelps feels she is able to speak more candidly about her

"There was no question that the representation made to me
that it was appropriate for me to be involved with the
company was misleading," she says.

One industry source claims Fisher may be found to have been
principally responsible for the collapse of the Satellite
Group.  "The true extent of the deficiency will come out in
the wash when ASIC completes its investigation," he says.
"Satellite was a gay media and property business which
should never be run as a listed company. It is sad that
Fisher is still running around town."

Fisher insists Satellite was deliberately driven into
administration by other executives in the company's
management and board ranks.  "I can demonstrate that when I
left the company in July, we had the ability to meet our
financial obligations, including the payment of
superannuation contributions and payroll tax. This was
budgeted for from the cash flow of the company.

"We knew where the cash was coming from in the next 12
months. Because of our high overheads, the company was in
the process of being trimmed down. We knew our burn rate of
cash and had it all budgeted in going forward.

"However, there was no disputing that we were having
difficulties with our properties and they were being
refinanced. At that time, there was a lot of internal
tension. To uproot the head of the company at that crucial
time was irresponsible."

Phelps says that it was after Fisher left the company that
problems with the superannuation funds were brought to her
attention. As the extent of the difficulties unfolded, she
moved to call in a voluntary administrator but was out-
voted by other board members.

"I suspect no superannuation funds were paid to the
relevant authority from the start," she says.  "I was aware
that group tax was not paid but I was not aware about the
non-payment of payroll tax. These matters did not appear in
any of the board papers."

Despite the debacle, Phelps believes the gay and lesbian
community understands what happened and "that I acted as
quickly as I could. I am reluctant to say more until after
ASIC investigation and court proceedings against Fisher are
over." (The Australian 02-Dec-2000)

SURF DIVE`N SKI: Saved from a wipeout
Surf Dive 'N Ski, well-known chain of lifestyle clothing
shops in Australia, has been acquired by Rip Curl, which
agreed to take over the 15 stores of the troubled retailer
in Australia. The chain also owns three shops in Auckland,
New Zealand, and hit the headlines in October for all the
wrong reasons. Owner Ganesh Australia defaulted on a $A12
million commercial loan, and other creditors were
discovered to be owed $A15 million. The Gold Coast-based
parent, Daswani Group, turned out to owe some $A50 million.
Then it emerged that the owner of the group had departed
Australia on Oct. 1. The Surf Dive 'N Ski shops in New
South Wales are owned by an unrelated company, and the
chain's key store in Auckland was been snapped up by local

C H I N A  &  H O N G  K O N G

CA PACIFIC FINANCE: Liquidators seek court direction
CA PACIFIC SECURITIES: Liquidators seek court direction
Liquidators of CA Pacific have been forced back into court
for directions on how to distribute securities of the
collapsed brokerage more than two years after a judge
ordered that the shares be returned to clients.

The question of the allocation of CA Pacific Finance and CA
Pacific Securities shares among clients is in the hands of
Madam Justice Maria Yuen Ka-ning, who yesterday reserved
judgment.  The same judge ordered in December 1998 that
shares be returned to the clients - but at the same time
she admitted this would be costly, time-consuming and could
lead to a potential "unjust" result. Liquidators were given
the task of analysing 8,000 clients' accounts in the wake
of the judgment.

According to Jan Blaauw, PricewaterhouseCoopers partner in
charge of the liquidation, the judge has now reserved her
decision in relation to their application for further
directions in respect of CA Pacific.  "The court's rulings
and directions will be given in open court in due course,"
he said.

Directions from the judge were necessary because the shares
held by the collapsed brokerage were not sufficient to pay
all the clients.  Disgruntled clients have been forced to
wait nearly three years for any remnants of their
investments with CA Pacific.

There was a shortfall of HK$500 million when CA Pacific
Securities and its margin finance arm collapsed in January
1998. Clients were owed HK$1.4 billion in shares, but it
only had HK$900 million on hand.  The liquidators went to
court to resolve the matter, with the judge ruling that
investors had a proprietary interest as rightful owners of
their shares.

Brokerage clients had been split into two categories for
the civil trial - those with a proprietary claim and
investors who would best benefit if the shares were sold
and equally distributed.  Madam Justice Yuen, however,
ruled that the securities held by CA Pacific were held as
part of its general assets.

"It follows that when such securities were acquired, the
law would regard the client as having the beneficial
interest in them," she ruled at the time.

The judge even noted that some other form of arrangement
could have been fairer and less expensive. Liquidators had
realised from the offset that examining and analysing each
clients' account would be time-consuming.  The collapse of
CA Pacific sparked a criminal trial of its de facto boss,
Jason Wong But-sit, and his estranged wife Elizabeth Kong

The pair were accused of stealing HK$248 million from CA
Pacific Finance, money used to fund the HK$1.24 billion
purchase of Central's Century Square building in late 1997.
However, the Wongs walked free from the High Court in
February this year after a judge suspended a two-year jail
term for false accounting.  The trial became yet another
high-profile commercial case to end without incarceration.
(South China Morning Post  02-Dec-2000)

Emperor Technology Venture Ltd. recorded a $16.43 million
loss for the first half of this financial year ended Sept.
30 - a turnaround from the $27.84 million profit it posted
for the same period last year. Turnover was $149 million;
loss per share 2.85 cents. No dividend was declared.

TIANJIN SHIPPING CO.: Escapes 50.2M yuan judgment
The Tianjin High Court has ruled in favor of Tianjin
Shipbuilding Co. Ltd. and against Hudong Heavy Machinery
Co. Ltd. in a bankruptcy suit over 50.2 million yuan.

Finding that Tianjin Shipbuilding's remaining assets were
insufficient to cover liquidation fees and debts to
employees, the Tianjin High Court ruled an end to the
liquidation process without settlement of the company's
other debts. Tianjin Shipbuilding owed Hudong Heavy
Machinery the 50.2 mln yuan as payment for the purchase of
diesel-powered machinery.

ZHENGZHOU BAIWEN: To restructure
Zhengzhou Baiwen, a debt-ridden state-owned department
store in the capital of Henan province, will begin to
restructure according to a plan approved yesterday to avoid
an embarrassing bankruptcy, Xinhua News Agency reported on

The move ends weeks of speculation that the store could be
the first mainland firm to withdraw from the stock market
and the first public company to declare bankruptcy in the
mainland. It may also relieve small investors who would
otherwise get nothing from the company's bankruptcy, Xinhua
reported, citing Chinese stock market analysts.

The company, which listed on the Shanghai A share stock
market in 1996, has lost 1.5 billion yuan (HK$1.4 billion)
and owes 2.5 billion yuan in bank loans. It has just 600
million yuan in assets, said Xinhua.  The Sanlian Group, a
Jinan-based company with diverse interests, will take over
the store and up to a 50 per cent of stake in the listed
branch of the company, according to the reorganisation

Zhengzhou Baiwen's news has dealt a heavy blow to a
mainland stock market that has been inundated with under-
performing companies. But governments in China are
reluctant to let even the worst performing companies
withdraw from the exchange or go bankrupt, according to the

Restructuring began when the Construction Bank of China,
Zhengzhou Baiwen's biggest creditor, ordered its assets
management subsidiary Cinda to negotiate debts with the
Zhengzhou city government, the store's biggest shareholder.
Cinda also appealed twice to the China Securities
Regulatory Commission to let Zhengzhou Baiwen go bankrupt,
but met with strong resistance from local authorities. A
court in Zhengzhou rejected Cinda's application to force
the store to go bankrupt, Xinhua said.

Under the compromised restructuring plan, local
government's holdings will be phased out from the store,
and loan liabilities will be divided three ways: the parent
company of Zhengzhou Baiwen, Sanlian Group and Cinda.
Sanlian will pump 300 million yuan into the company, and
Cinda will waive part of the loan liabilities, Xinhua said.
(South China Morning Post  02-Dec-2000)


NAPAN GROUP: Only one subsidiary pays debts
So far PT Turanga Wisesa is the only one out of seventeen
subsidiary companies of the Napan Group - a business group
controlled by Hendry Pribadi -- has paid its Rp20 billion

Napan Group shareholder Andry Pribadi has paid his personal
debts to certain Napan Group subsidiaries in the amount of
Rp575.66bn. According to one IndoExchange  source at the
Indonesian Banking Restructuring Agency (IBRA), personal
payments such as these are common. As a shareholder, he has
the right to pay his debts without waiting for the payment
from others.

"If he is certain that he can pay the debts, he is allowed
to do so without having to wait for other shareholders,"
the source said. "It is not necessary for shareholders to
pay debts at the same time."

Meanwhile, Napan Group subsidiary PT Polyprima Karyareksa
is currently preparing a proposal for restructuring process
for Rp2.64tr worth debt. The seven Napan Group subsidiaries
in the process of signing a Memorandum of Understanding
(MoU) are:
1. PT Adikara Nirmala (holding company) - total debts
Rp163.11 billion;
2. PT Bali Perkasa Sukses (property) - total debts Rp105.96
3. PT Megarimba Karyatama (Medium Density Fiberboard
producer) - total debts Rp229.02 billion;
4. PT Murni Multi Finance - total debts Rp19.60 billion;
5. PT Niagatama Arsaraya (hotel) - total debts Rp81.90
6. PT Polypet Karya Persada - total debts Rp426.87 billion;
7. PT Surya Citra Televisi Indonesia - total debts Rp251.61

The other eight subsidiaries that have not followed the
restructuring process are:
1. PT Pan London Sumatra Plantation - total debts Rp8.76
2. PT Pennsindo Lubritama Gemilang (sole distributor of
Pennzoil) - total debts Rp31.40 billion;
3. PT Duta Perkasa Unggulestari (real estate) - total debts
Rp21.70 billion;
4. PT Indocitra Finance - total debts Rp7.5 billion;
5. PT Arcom Primantara System (computer hardware trading) -
total debts Rp4.1billion and $371,000;
6. PT Nusadua Alamindah (hotel) - total debts Rp5 billion;
7. PT Bali Nusa Intan (hotel) - total debts Rp5 billion;
8. PT Intinusa Selareksa (granite & marble producer) --
total debts Rp1.5 billion.

Napan Group has been included as one of IBRA's top obligors
since 1999, with Rp3.68 trillion debts. Napan Group
shareholders include Hendry Pribadi, Andry Pribadi, Wilson
Pribadi, Bambang Trihatmodjo, Peter F Gontha, Sudwikatmono,
Ibrahim Risjad and Amirsjah Risjad. (Jakarta Post 02-Dec-

PT DAYA GUNA SAMUDERA: Won't make full $225M debt payment
PT Daya Guna Samudera, Indonesia's biggest fishing company,
can't make all of a coupon payment due on $225 million of
bonds it sold shortly before the rupiah slumped in 1997,
according to one the bondholders.

Djajanti Group, Daya Guna's parent, told bondholders half
the coupon payment due today will be transferred on time,
while the rest will be paid on Jan. 5, said Soufat
Hartawan, an assistant investment manager at Manulife
Financial Corp. which holds about $1 million of the
company's bonds.

"We've just received notification," said Hartawan. "We're
just waiting for written confirmation."

Daya Guna in September warned investors it's losing revenue
because religious and ethnic violence in Indonesia's Maluku
province, which has left more than 5,000 people dead the
past two years, has scared off half Daya the company's
7,200 fishermen, slashing its catch by a third.  The
company on November 22 sold 26 of its fishing vessels for
41.4 billion rupiah ($4.3 million), while another Djajanti
Group fishing unit, PT Kinantan Senaputra, sold 15 boats
for 8.15 billion rupiah.

That raised $5.3 million, nearly half the $11.5 million
Daya Guna must pay on the bonds each June and December.
Company officials didn't comment today.  Moody's Investors
Service On Nov. 10 downgraded Daya Guna's rating to "Ca,"
its second-lowest rating. Moody's cited lack of information
from the company as well as "uncertainty in resolving
creditors claims under Indonesian law" if the fishing firm
were to default.

Daya Guna's troubles had earlier led Standard & Poor's to
cut Daya Guna's credit rating to "selective default" after
it failed to repay $83 million owed to banks. The credit
rating on its bonds is "CC," two notches above its lowest D

Daya Guna shares closed down 5 rupiah, or 0.93 percent, at
530 rupiah on July 7, their last trading day before being
suspended because of a delay in the company's submission of
1999 earnings. The shares were de-listed from the Jakarta
Stock Exchange on Oct. 9. (Bloomberg  01-Dec-2000)

PT INDOCEMENT TUNGGAL: Weak rupiah inflicts heavy losses
-------------------------------------------------------- -
Cement maker PT Indocement Tunggal Prakasaa reported a loss
of Rp 577.26 billion (US$64.1 million) for the first nine
months of this financial year. That was quite a turnaround
from a profit of Rp20 billion last year. In a report to the
Jakarta Stock Exchange, the company attributed the loss to
foreign exchange losses of Rp1.07 trillion.

PT TIRTAMAS COMEXINDO: IBRA protests court decision
Indonesian Bank Restructuring Agency (IBRA) legal division
head Munir Waspada confirmed the agency has filed a
petition with the Commercial Court, protesting the court's
Nov. 27 ruling that the agency was not a creditor of
Tirtamas Comexindo.

Waspada said IBRA has legally taken over the non-performing
loans of Bank Negara Indonesia, Bank International
Indonesia, Bank Bukopin, Bank Mandiri, Bank Central Asia
and those of a number of closed banks namely Bank
Istimarat, Bank Uppindo, Bank Pelita, Bank Tata
International and Bank Umum Nasional.

Tirtamas Comexindo owed around 1 trillion rupiah to those
banks, he said. "Therefore, IBRA has filed a petition with
the commercial court for it to reconsider its decision.
IBRA is the legal holder of the loans and at the same time
a creditor of Tirtamas," he said.

In March this year, the commercial court granted a request
by PT Tirtamas Comexindo for a six-month suspension of
payment, overruling a bankruptcy suit against the company
filed by IBRA. PT Tirtamas Comexindo is a trading company
owned by businessman Hashim Djojohadikusumo. (AsiaGateway


KOFUKU BANK: Still going to Ross-led investment fund
Failed Kofuku Bank will be sold to an investment fund led
by U.S. financier Wilbur Ross as agreed, even though a
planned sale of Tokyo Sowa Bank to the same fund was
canceled Thursday.

Accoridng to Takahiro Mitani, manager of the Bank of Jpan's
Osaka branch, at a press conference, cancellation of the
Tokyo Sowa Bank deal is not expected to affect the intended
sale of Kofuku Bank.

Earlier, it had been reported that the Ross-led Asia
Recovery Fund (ARF) would establish a holding company to
engage in the banking business in Tokyo and Osaka following
acquisition of the two collapsed second-tier regional
banks. Now, Mitani suggested that Tokyo Sowa Bank should
immediately seek another buyer.

A senior official at the government's Deposit Insurance
Corp. announced the cancellation of the sale of Tokyo Sowa
Bank on Thursday, saying ARF "demanded that the government
increase loan-loss provisions for fear that illegal actions
(by former top executives of Tokyo Sowa Bank) might affect
deals with clients."


DAEWOO MOTOR: Court approves receivership petition
Daewoo Motor has confirmed that its receivership
application had received court approval, providing South
Korea's third-largest vehicle maker with an opportunity to
turn itself around.

A Daewoo spokesman said a civil court in the city of Inchon
approved the receivership application Friday. The court
appointed company chairman Lee Jong Dae to manage the firm.
The court will evaluate company assets for two months to
see whether they can be revived, and thus determine if
court receivership is a worthwhile step.

Under the court receivership, debt payment has been frozen,
and debt rescheduling can't exceed 10 years. Interest
payments are also reduced or waived during the period. The
ruling further means Daewoo Motor can avoid immediate
liquidation as it gains protection from creditors, and can
have access to new funds as lenders step up talks with
General Motors and Fiat about a sale of the carmaker.

Daewoo's lenders have until January 15 to tell the court
the amount of credit they have extended to the company to
help the court gain an accurate picture of its debts.  The
company in September claimed debts of 18.9 trillion won.
Daewoo is expected to post a net loss of as much as US$2B
this year as debt affects product profile and sales.

The company applied for court receivership on November 10
after creditors cut fresh funding when the vehicle maker's
union rejected proposed layoffs.  Last Wednesday, creditors
agreed to provide 727.9 billion won (US$606 million) in new
loans to the insolvent company. Also last week, the union
agreed to accept a company-proposed package of reforms,
including job cuts.

In a restructuring plan announced late in October, Daewoo
pledged to cut 3,500 workers from a total of 19,000 and
raise 900 billion won by next year through asset sales and
other cost-cutting measures. Some analysts suggest that
more jobs will have to be cut if the company is to survive.

DAEWOO MOTOR: Sales sink 50% in wake of bankruptcy
Daewoo Motor suffered a 50 percent fall in sales at home
and abroad last month, underlining the automaker's rapid
disintegration in the wake of its bankruptcy Nov. 8.

Daewoo Motor said yesterday that its domestic and offshore
shipments in November amounted to 43,340 units, marking a
51.8 percent drop from 89,855 units recorded the same month
last year.  Compared with 79,899 units sold in October this
year, Daewoo suffered a 45.8 percent drop in overall sales,
company officials said.

The company's exports crashed at a steeper rate last month,
falling 59.1 percent year-on-year to 22,764 units, while
its domestic shipments recorded a year-on-year fall of 39.8
percent to 20,576 units. Compared with October, its
domestic and overseas sales shrank by 17.7 percent and 58.5
percent, respectively, the officials said.

Daewoo's passenger car sales, in particular, posted year-
on-year falls of 60.5 percent at home and 67.2 percent
abroad. Notably, sales of the medium- and large-size sedans
were hit hard.  As a result, Daewoo's cut the nation's
overall exports by an estimated $200 million last month,
according to the Ministry of Commerce, Industry and Energy.

"Daewoo Motor's exports jumped from $250 million in
September to $380 million in October. But the figure
crashed to $80 million in November, dealing a serious blow
to the overall export performance," said a ministry

Since Nov. 9, operations at Daewoo's main car plant in
Pupyong have been halted due to a shortage of components,
while its other local plants in Kunsan and Changwon have
been forced to reduce operational hours. Daewoo Motor's
application for court receivership was tentatively approved
Thursday, but the outlook for its normalization is not
bright due to a latent labor dispute over layoffs.

Meanwhile, overall car sales by Hyundai Motor and Kia
Motors in November also fell by 2.2 percent and 7.3
percent, respectively, tallying the nation's overall
domestic sales decline rate at 7.8 percent. Thus, Korea's
domestic car sales recorded month-to-month drops for the
fourth consecutive month.

Hyundai's domestic sales fell 13.1 percent to 45,224 units
last month from the previous month, but its exports posted
a 4.2 percent growth to 92,498 units. In contrast, Kia
raised its domestic sales by 7.9 percent to 35,960 units,
but saw its exports retreat 16 percent to 48,540 units.
By model, Kia's Optima compact sedan sold 5,127 units last
month, replacing Hyundai's EF Sonata as the best-selling
vehicle in Korea by a gap of 14 units.

Earlier on Wednesday, the Korea Automobile Manufacturers
Association said that the country's auto production next
year is expected to contract 1 percent from this year to
3.08 million units, causing the auto industry to post its
first negative growth in production since the 1997 economic
crisis. (Korea Herald 02-Dec-2000)

HYUNDAI ELECTRONICS: FSS to allow excess credit provision
The Financial Supervisory Service will tolerate creditors
of Hyundai Electronics Industries (HEI) for exceeding their
credit limits by providing a syndicated loan of one
trillion won requested by the company.

"We will approve the excess credit provision to HEI by its
creditors resulting from the syndicated loan," an FSS
official said yesterday.

He said the excess credit provision would not matter if HEI
uses the loan to repay its previous borrowing from banks.
The syndicated loan is being promoted by Citibank which has
asked a group of domestic banks and insurance companies to
provide 100-200 billion won each.

Citibank made the offer to Korea Development Bank, Korea
Exchange Bank, Kookmin Bank, Housing and Commercial Bank,
Samsung Life Insurance and Kyobo Life Insurance, but some
of these institutions have delayed their decision on the
matter.  Under the present law, a financial institution
should limit its exposure to a single business group and a
single company to 25 percent and 20 percent of its equity
capital, respectively (Korea Herald 02-Dec-2000)

KOREA EXPRESS: To accelerate restructuring
Korea Express, currently under court receivership, will
accelerate its restructuring efforts and downsize its
organization. The company will terminate eight of its 20
executives and cut salaries by 25 percent for those execs

SAMSHIN LIFE INSURANCE: Designated as insolvent
Korea's Financial Supervisory Commission (FSC) has
designted Samshin Life Insurance Co. "a bad financial
institution" and suspended its board of directors. To
replace the suspended board, officials of the Financial
Supervisory Service have been appointed to serve as

On Nov. 24, the FSC expressed disapproval of company
management's reform plan on the grounds of its liabilities
exceeding the assets by as much as 60 billion won. It then
Samshin that unless it submitted a plan to improve its
financial situation by Dec. 1, it would be designated as a
bad company. Samshin Life missed the deadline, and now must
transfer its clients to other companies.


FIMA CORP: To repay debts with tenancy-termination funds
Fima Bhd's subsidiary, Fima Corporation Bhd, will use the
RM45 million compensation from Malaysia Airports Bhd to
repay its debts.

The compensation was for the latter's termination of Fima
Corp's tenancy agreement at the Subang airport.  "The
proceeds would be used to repay bank borrowings, which
would reduce the gearing level to 0.1 times from 0.52
times," Fima Corp's chief executive officer Roslan Hamir
said today.

The group has RM55.22 million in borrowings as at March 31.
The amount will be reduced to RM10.22 million following the
repayment of RM45 million, he said.  The repayment would
enable the company to save RM4 million in interest
payments.  The settlement would be completed upon the
authorities' approval, Roslan told reporters after the
company's shareholders approved the proposed settlement at
its extraordinary general meeting.

Malaysia Airports had in September 1993 entered into a
tenancy agreement with Kumpulan Fima Sdn Bhd, involving the
land and complex known as Fima Airtel Complex at the Subang
airport. Kumpulan Fima subsequently assigned its rights and
entitlement of the property to Fima Corp for RM60 million.
In May, Malaysian Airports notified Fima Corp that the
tenancy agreement was terminated effective that month. Fima
Corp was ordered to deliver vacant possession of the
property to the former on Oct 10.

Roslan said the settlement was "timely, as it would unlock
the value of the business operations." He said businesses
there were operating under depressing conditions, with 50
per cent occupancy rates due to the opening of the Kuala
Lumpur International Airport in Sepang.

Fima Corp is involved in printing, trading and property
management. Trading and property management contributed 15
per cent of the company's turnover, while printing amounted
to nearly 85 per cent.  The losses in financial years (FY)
2000 and 1999 were mainly attributed to Fima Airtel
Complex's reduced contributions.

Roslan said Fima Corp expects trading and property
management to contribute more than 20 per cent in the
current financial year, but declined to elaborate on its
possible new ventures. The company manages the RM60 million
Plaza Damansara, which has an 85 per cent occupancy rate.
"We do not want to give details prematurely as this would
lead to speculation and share price fluctuations," he

Roslan also said there are no plans to diversify for now,
since the company will be focusing on enhancing its present
operations.  Though the interest savings would allow the
group to have a higher profit retention rate, Roslan does
not expect its profit to be significantly higher due to the
loss of "occupancy" revenue from the Fima Airtel Complex.
(The Edge Daily 01-Dec-2000)

GANAD CORP: Auditors find discrepancies
The accounts of loss-making Ganad Corp Bhd were adopted at
its AGM yesterday although the auditors were not able to
determine whether they had been properly drawn up.

At the 40-minute-long meeting which was closed to the
press, no shareholder voted against the resolution to adopt
the accounts despite a report by external auditing firm
Moores Rowland that it had been unable to obtain "all the
necessary explanations and supporting documentary evidence
on various matters."

However, it was learned that questions were raised by
shareholders on the auditor's qualification of the
accounts.  Speaking to reporters after the AGM in Seri
Kembangan, Ganad managing director Gan Kok Beng said the
shareholders were satisfied by the explanation given by the
management. However, he declined to reveal what the
explanation was.

"Whatever comments we gave, we had already given officially
to the authorities. We don't want to have conflicting
interpretations, because this is a fairly sensitive
matter," said Gan.

In Ganad's latest annual report, the auditors highlighted
several issues, including:  A total of RM4.062mil,
described as "doubtful debt recovered, had been credited to
the accounts, but the auditors were unable to verify the
identities of the payers, or the nature and purpose of
these receipts; The difference of RM4.317mil between the
balances as shown in the accounting records of the group
and the balances confirmed by the trade debtors could not
be reconciled by management to the auditors' satisfaction;
and management failed to provide the auditors with all the
supporting account analyses and explanations needed to
complete the audits of the accounts of its Cambodia-based

"We've answered shareholders' queries to the best of our
ability and they have accepted," Gan told reporters, adding
that there was no plan to issue a public statement to
clarify the matter.

Ganad, an outdoor advertising company, incurred a group
pre-tax loss of RM4.05mil for the financial year ended May
31, 2000, a 70% improvement from the RM14.77mil loss
incurred previously. Gan expressed optimism that the group
would perform better in this financial year, noting that
group unaudited results for the first quarter showed a pre-
tax profit of RM752,000.

"Outlook for this financial year is positive," he said,
refraining, however, from giving a timeframe for when the
company was expected to return to the black.

On recovery of debts, Gan said the company could not
comment as debt-recovery was an ongoing business. He noted,
however, that one debtor was filing for bankruptcy.
Ganad has ventures in several countries, but Gan said there
was no plan to pull out from any foreign market. According
to the 1999 annual report, pre-tax loss of its overseas
operations grew 70% to RM3.173mil.

"Where the market is favorable, we're expanding. Where they
aren't, we will not invest further," he said. For
investments abroad, the company is giving priority to its
Thai and Myanmar operations. "We have a very positive
outlook for Thailand based on new clients we have secured
and new (outdoor advertising) structures we've built."

Two new structures--a unipole (with three panels) and a
rooftop billboard--have just been constructed in Bangkok
which would start to contribute to its income this year.
"In total, we have five structures with eight panels in
Thailand," he said.

On the Myanmar business, Gan said the company expected to
have over 20 new structures soon, which would carry ads of
Indonesian cigarette manufacturer Sampoorna. At present
Ganad has more than 50 billboards in Myanmar.  Ganad is one
of the three biggest outdoor advertising players in
Malaysia, with more than 500 billboards nationwide. The
Malaysian operations currently contributes about 80% of the
Ganad group's turnover.

"With the increased activities in Myanmar and Bangkok, the
foreign contribution may increase, but then again, it's
still a long way to the end of our current financial year
and business in Malaysia may also pick up," Gan said.

Asked whether there would be further expansion in Malaysia,
he replied: "Yes, as and when the requirements are there.
We don't build structures unless there are clients to take
them up."

According to Gan, the company plans to build more "street
furniture" in the form of directional signs.  On whether
the company would increase its paid-up capital in line with
the KLSE requirements, he said, "We still have until 2002
to do it. We want to make sure everything is proper first
(with the current operation)t before undertaking such an
exercise." (Star Online 30-Nov-2000)

IDRIS HYDRAULIC: Posts nine-month loss
Idris Hydraulic (Malaysia) Bhd posted a net loss of
RM422.77 million for the nine-month period ended Sept. 30.
That was up from a loss of RM63.61 million for the same
period the previous year. In a statement to the Kuala
Lumpur Stock Exchange, Idris reported turnover for the
period was RM71.56 million, down from RM82.82 million for
the same period the previous year.

For the third quarter alone, the company recorded a net
loss of RM29.84 million, also up from a loss of RM21.09
million for the same quarter last year. Turnover was
RM22.99 million, down from RM28.83 million previously.
Except for its insurance business -- which recorded a pre-
tax profit of RM10.48 million --, Idris` timber, manufac-
turing and other operations recorded pre-tax losses
totaling RM430.49 million.

Idris has a total of RM590.53 million in short-term
borrowings and US$27.74 million (RM105.42 million) in
foreign currency borrowings. It's long-term borrowings
total RM7.81 million.  The company expects the difficulties
of the current year to continue while it undergoes a
corporate debt restructuring exercise under the supervision
of the Corporate Debt Restructuring Committee

MBf HOLDINGS: Posts 9-month loss
MBf Holding Bhd recorded a net loss of RM115.34 million for
the nine-month period ended Sept. 30, down from a net loss
of RM379.34 million for the same peroid the previous year.
In a statement to the Kuala Lumpur Stock Exchange, the
company reported turnover for the nine-month period was
RM607.18 million, likewise down against RM762.10 million
for the same period last year. For the third quarter alone,
MBf posted a net loss of RM59.42 million, nearly 50 percent
lower than the RM104.06 million recorded for the third
quarter last year.  Turnover for the quarter also was lower
at RM195.85 million, down from RM275.78 million the third
quarter last year.

Technology Resources Industries Bhd, Malaysia's largest
cellular phone company, reported a RM8.2 million loss for
the third quarter of this financial year ended Sept. 30.
The loss was more than 50 percent less than its RM17.2
million loss for the same period a year ago.

Tjandra Kartika, vice president at GK Goh Research,
projects expects the company's loss for the full year
ending Dec. 31 to reach RM61 million, likewise down from
the RM344.3 million it posted last year. The loss is
expected to narrow further to RM48 million in 2001, and the
company could swing to a profit of RM64 million in 2002,
Tjandra said.

Currently, TRI is rescheduling its debt after defaulting on
US$200 million (S$351 million) worth of bonds in October
1999, and a US$175 million issue in November. It plans to
reorganize its debt by blocking holders of US$375 million
bonds from redeeming their money before May 2002.

The group also is weighted down with interest costs, the
total for the nine months ended Sept.30 being RM273 million
(S$126 million). The total is expected to reach over RM300
million for the full fiscal year, according to Mr Tjandra.


JADE BANK: Depositor sues execs for fraud
Three executives of thrift bank Jade Savings and
Progressive Bank (Jade Bank) have been charged by its
Chinese client of large-scale estafa (fraud) through
falsification of commercial documents involving 10 million
Philippine pesos ($.202 million at PhP49.59=$1).

Based on the memorandum of preliminary investigation filed
at the Department of Justice last October 30, Vicente G.
Ngo, depositor at Jade Bank, alleged that Jade Bank
chairman Jacinto Sy, his brother Socrates Sy and Jade Bank
manager Nancy Capispisan Jim a.k.a Nancy Co connived not to
cash his PhP10-million time deposit with the bank as well
as accrued interest amounting to PhP571,368.08

He also denied he borrowed PhP16 million from Jade Bank.
In his affidavit-complaint, Mr. Ngo said he is a "good
friend" of Socrates Sy, who introduced him to Ms. Co. He
said his PhP10-million time deposit with the bank under
Special Jade Account Letter Agreement (SJALA) No. 901517
matured last September 6. Checks issued by Jade Bank
bounced and Ms. Co later admitted the bank does "not have
the funds," Mr. Ngo said.

In a separate affidavit, Fe A. Kasilag, acting head of Jade
Bank's cash department, revealed that Ms. Co is an "active
participant" of a "syndicate" in the bank, which issues
SJALAs similar to genuine ones. Ms. Kasilag said genuine
issues begin with numbers "1" or "2" and have only five
numbers. "Unauthorized" issues, meanwhile, start with "9"
and have six numbers. On September 15, Mr. Ngo said he met
with Messrs. Sy and Ms. Co regarding the matter.

"At the said meeting, Mr. Jacinto Sy initially talked about
the liquidity problems of Jade Bank... Both Jacinto and
Socrates Sy convinced me to give them additional time to
settle my deposit, and they said they would immediately
issue me a new set of certificates with different dates in
settlement of my deposit account. But they undertook to pay
the accrued interest of PhP571,368.08 to me in cash."

He, however, was issued six certificates, all beginning
with "9". Five of the certificates amounted to PhP2 million
and the other is equivalent to the accrued interest. Upon
the maturity date of one of the certificates, Mr. Ngo said
Ms. Co asked him to "roll-over" the time deposit for
another term since "they have no funds at that time."

"I am positive that they are 'unauthorized' issues," Ms.
Kasilag said in her affidavit. "On October 16, I was called
by Director Vicente Aquino of Bangko Sentral (Central
Bank). At my meeting, I received the information that I was
a borrower of Jade Bank for PhP16 million -- which is not
true. In fact as early as September 15, 2000, Mr. Jacinto
Sy assured me I was not a borrower of the bank," Mr. Ngo
said. (Business World  02-Dec-2000)

NATIONAL STEEL CORP.: Liquidator seeks OK to operate
National Steel Corporation's liquidator has asked the
Securities and Exchange Commission for permission to
operate the company's mothballed steel mills in Iligan

According to documents obtained from the SEC, liquidator
Danilo Concepcion said funds advanced by creditors to
maintain the mills would last only up to Dec 15. "The money
available is simply not enough to keep the machinery and
equipment in good operational condition," he said in a
pleading to the SEC, adding that maintenance costs of the
mills runs to 12 million pesos monthly.

Concepcion asked permission "to enter into agreement for
the lease thereof with a lessor who has the financial and
technical capacity to operate as many mills of the steel
plant as posible, and who can start operation immediately."

Concepcion said allowing an operator to enter would result
in the steel mills being maintained while liquidation
proceedings for National Steel's assets continued.
National Steel, with debt of 16.5 billion pesos, suspended
operations in November last year due to its financial
problems. Concepcion said the sale of its assets may take
around six months.

PHIL.TELE. & TELE.: Creditor banks agree to rehab plan
Santiago-led Philippine Telegraph and Telephone Corp.
(PT&T) has managed to convince the majority of creditor-
banks to agree on terms to restructure its 8.9-billion
Philippine peso ($179.47 million at PhP49.59=$1) debt.

The company expects to complete terms of the definitive
restructuring agreement -- which includes conversion of
one-third of the debt into equity -- before the end of the
year. PT&T president and chief executive officer Marilyn E.
Santiago said the company last October obtained the
approval of the majority of creditors -- representing 61%
of the outstanding debts -- to agree on their restructuring

"We do not have a definite date on when the definite
restructuring agreement will be completed. The company is
feverishly working to complete all the documentations,"
said Ms. Santiago in an interview after the company's
annual stockholders' meeting.

The company's senior vice-president for fund management and
restructuring group Gerardo R. de Leon explained 33 percent
of their credit, as of June 30, will be converted to
equity. The debt-to-equity swap was the same scheme used by
cellular firm Pilipino Telephone Corp. in luring its
creditors agree on their restructuring proposal.

"It will however be subject to the law since we have
foreign creditors. The 67 percent balance will be
restructured to a 10-year repayment," said Mr. de Leon.

The company's remaining debt, around PhP6 billion, will be
subject to LIBOR (London Interbank Offered Rate) plus 2%
for the dollar loans and a 91-day Treasury bill rate plus
2% for the peso loans. The interest shall be payable
in 10 years inclusive of two-year grace period. The bulk of
the company's PhP8.9 billion in debt are in dollars, which
currently stands at PhP5.48 billion. Payment on the
principal is for 10 years, inclusive of a three-year
grace period.

"So the fact that we are not supposed to pay anything in
the next two years will give us time to focus more on our
e-business," said Mr. de Leon.

The company ended its fiscal year with a net loss of
PhP1.19 billion, which is higher compared with the previous
year's PhP770.5 million. Intense competition on the
international long distance business and the huge
disconnections this year hurt the company's financial
performance, aside from its pending restructuring
discussions with creditor-banks. (Business World 02-Dec-


DATAMAT: To liquidate 10 subsidiaries
Financially distressed Datamat confirms its board of
directors has decided to liquidate the company's 10
subsidiary and affiliate firms. In a filing with the Stock
Exchange of Thailand, the company reported that the
subsdiary firms already have ceased operations.

LOXLEY: S'holders approve debt rehab plan
At a meeting of Loxley shareholders, approval was given to
the company's debt restructuring plan.

Per of that plan, 160 million new shares are to be issued,
of which 85 million will be set aside for conversion of
$265 million (Bt11.58 billion) in convertible debentures
into equity. Another 65 million shares will be offered to
existing shareholders at a ratio of 1.625 new shares for
every share held at a price of $0.20 each. The balance will
be offered to employees and directors as stock options.

Following the capital infusion, Thailand's leading trading
firm will be capitalised at Bt2 billion from Bt400 million
at present. As for the remaining debts amounting to $140
million, the company said in a filing with the Stock
Exchange of Thailand that the repayment period will be
extended by anoth?er eight years and the interest rate will
vary between 7 and 8.75 per cent per annum.

Also at the meet, shareholders approved the appointments of
former commerce minister Pote Videj, currently managing
director of CS First Boston, and Charles Chicareli Jr as
company directors. (The Nation 01-Dec-2000)

THAI PETROCHEM.INDUS.: US$3.8B debt deal stalls
A crucial US$3.8 billion (S$6.7 billion) debt work-out for
Thai Petrochemical Industry (TPI) ran into fresh trouble
yesterday as a bankruptcy court delayed approving the plan,
Thailand's biggest ever debt restructuring.

Shares of TPI, which has South-east Asia's largest
integrated petrochemicals plant, tumbled as hopes faded for
an early conclusion to the deal -- seen as a key test case
of Thailand's commitment to resolve its heavy private debt
burden. The debt restructuring has been repeatedly
disrupted and delayed by worker protests and the opposition
of TPI founder and acting chief executive Prachai

The saga has cast a shadow over Thai markets and dented
investor confidence, analysts say. With thousands of
workers demonstrating outside, creditors met on Monday to
approve a debt restructuring involving the conversion of
nearly US$800 million in unpaid interest to a 75 per cent
stake in TPI, and the sale of non-core assets.

Thailand's central bankruptcy court was due to formally
approve the plan yesterday but announced it would delay a
decision until Dec 12 after an appeal by Mr Prachai. TPI's
debt plan was drawn up by consultancy firm Effective
Planners, appointed by bankruptcy courts earlier this year
to hammer out a debt work-out for the company.

The court said Effective Planners and the public receiver
should clarify their positions in writing on Dec 7. "There
are a lot of issues which Effective Planners has not yet
clarified. The court has agreed to cancel consideration and
review the debt plan on Dec 12 at 1.30 pm (0630 GMT)," a
court official said.

Around 3,000 workers at the company's plastic pellet
factory, olefins plant and lubrication oil plant who had
vowed to strike in protest at the plan stopped work briefly
yesterday afternoon. They restarted work after the
court delayed a decision. Workers are demanding assurances
their jobs are safe, and say the company should remain in
Thai hands. They have also demanded wage increases, the
scrapping of plans to sell-off non-core assets, and
assurances TPI's existing management will stay in place.

TPI shares dived more than 5 per cent after the court
announced the postponement of its decision. At closing they
had recovered some ground and ended down 0.10 baht at 3.70.
The shares climbed as high as 4.30 baht on Monday on hopes
the saga would finally be resolved, before giving up all
their gains.

TPI's shares have sunk from 19.75 baht at the start of this
year, a dismal performance even by the standards of the
beleaguered Thai bourse, down more than 40 per cent this
year.  (Business Times  01-Dec-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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