TCRAP_Public/001207.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

           Thursday, December 7, 2000, Vol. 3, No. 238


* A U S T R A L I A *

KGRIND: Facing voluntary administration?
SATELLITE GROUP: Founder to surrender his assets

* C H I N A  &  H O N G  K O N G *

ARISING LTD: Facing winding up petition
ATLANTA SPORTSWEAR LTD: Facing winding up petition
BANKING AUTOMATION TECH.LTD: Facing winding up petition
BEL TRADE (CHINA) CO.LTD.: Facing winding up petition
BEST MELODY CO.LTD.: Facing winding up petition
BEST WINNER (ASIA) LTD: Facing winding up petition
GUANGDONG ENTERPRISES: 80% of creditors' favor rehab plan
WAH LEE RESOURCES: Posts HK$75.57 million annual net loss

* I N D O N E S I A *

PT DHARMALA AGRINDO: Declared bankrupt
PT INDOCEMENT TUNGGAL PRAKARSA: Definitive debt rehab pact
PT SURYAMAS DUTAMAKMUR: Allocates Rp50B to buy back debts

* K O R E A *

DAEWOO MOTOR: More layoffs, less products ahead
HANYANG CORP.: Court to liquidate
SAEHAN GROUP: Suspected of taking out illegal loans
SKM: Creditors to probe major shareholder's actions
WOOSUNG CONSTRUCTION: Court to liquidate

* M A L A Y S I A *

CELCOM MALAYSIA: Slow pay with dues results in downgrading
HAP SENG CONSOLIDATED: Gives fresh funds to parent
MALAYSIAN MOSAICS: Receives fresh funds from affiliate
RASHID HUSSAIN BHD: Restructuring stalled

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

NATIONAL STEEL CORP.: Creditor banks agree to plant lease

* S I N G A P O R E *

IPCO INT'L: Stake sell to precipitate a loss
MEASUREX HOLDINGS: To get fresh funds, exit judicial mgmt.

* T H A I L A N D *

KRISDA MAHANAKORN: Signs pair of rehab agreements
RAYONG TANK TERMINAL PLC: Court rejects rehab plan
THAI PETROCHEM.INDUS.: Execs mulling civil court action


KGRIND: Facing voluntary administration?
KGrind is believed to be facing voluntary administration,
as all 50 of its staff were told last Friday not to return
to the youth portal's Surry Hills offices, while director
Mr Tom Amos tries to find a last-minute buyer for the

Sources close to the company said employees, after not
being paid their monthly salaries last Thursday, were told
at a staff meeting to leave the premises by that afternoon.
KGrind chief executive Mr David Keane has meanwhile secured
a job for himself with Asian broadband internet provider

It is understood the crunch came for KGrind when, after
being deserted by Pacific MetroNet, the joint venture
between locally-listed property developer Metroland and
Malaysian-based Mr Siew Hong Koh's Union Pacific, it
finally found its coffers empty.

In July Pacific MetroNet provided KGrind with a $1 million
loan and pledged to spend $5 million acquiring 51 per cent
of the company, but late last month it dipped out of the
deal. Now, with all the staff gone and the chief executive
ensconced in a new role, it is understood Mr Amos is
working to secure a sale of KGrind's technology to Perth
telecom outfit and China Internet hopeful New Tel.

Mr Amos, when asked yesterday whether KGrind had been
placed in voluntary administration, declined to comment.
New Tel, however, told investors yesterday it was
undertaking an assessment of KGrind's portal technology

"New Tel is very keen to examine the technology that KGrind
has," said New Tel chief executive Mr Peter Malone.
If New Tel were to acquire KGrind, he said it would "take
it out as a total package".

But it looks unlikely that the original investors,
Macquarie Bank and Australian Mezzanine, will realise any
return on their investment. A source suggested New Tel
itself had been funding KGrind's payroll in recent times in
order to "keep it afloat while looking at it."  But New
Tel's Mr Malone said yesterday his company had not footed
any of the youth portal's bills.

On a separate matter, Mr Malone said yesterday New Tel's
China Internet project was still on, refuting reports from
a London newswire that New Tel's Chinese partner, the
Xinhua news agency, knew nothing about the deal. According
to Mr Malone, the confusion stemmed from the fact that
Xinhua Holdings is held on trust for the commercial arm of
the Xinhua news agency in Hong Kong by two individual
Chinese businessmen and is not, as the report suggested,
actually owned by the men.

However, there is some doubt about New Tel's planned $US200
million capital raising. Market watchers were claiming
yesterday that that figure could now be as low of $US100
million. (Sydney Morning Herald  06-Dec-2000)

SATELLITE GROUP: Founder to surrender his assets
Satellite Group founder Greg Fisher is to appear in court
on Dec. 8 regarding alleged securities improprieties.
Currently being investigated by the Australian Securities
and Investments Commission (ASIC), Fisher faces allegations
of impropriety in the Supreme Court of New South Wales.
Meanwhile, it is anticipated that Howarth Sydney
Partnership Chartered Accountants will take control of
between $A8m and $A10m of Fisher's assets to distribute
to Satellite's creditors.

C H I N A  &  H O N G  K O N G

ARISING 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 Hoa Bank Limited for the winding up of Arising Limited.
A notice of legal appearance must be filed on or before
December 26.

ATLANTA SPORTSWEAR LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 9, 2001 on the petition
of All Ports Holdings Limited for the winding up of Atlanta
Sportswear Limited. A notice of legal appearance must be
filed on or before January 8.

BANKING AUTOMATION TECH.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 De La Rue International Limited for the winding up of
Banking Automation Technology Limited. A notice of legal
appearance must be filed on or before February 5.

BEL TRADE (CHINA) CO.LTD.: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 12 on the petition of
Burr Oak Tool and Gauge Company Inc. for the winding up of
Bel Trade (China) Company Limited. A notice of legal
appearance must be filed on or before December 11.

BEST MELODY 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 Ho Kei Luen for the winding up of Best Melody Company
Limited. A notice of legal appearance must be filed on or
before January 16.

BEST WINNER (ASIA) LTD: Facing winding up petition
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 20 on the petition of
Centaline Property Agency Limited for the winding up of
Best Winner (Asia) Limited. A notice of legal appearance
must be filed on or before December 19.

GUANGDONG ENTERPRISES: 80% of creditors' favor rehab plan
The restructuring proposal of Guangdong Enterprise has been
approved by its creditor banks, passing with an 80 percent
favorable vote, according to a report in the Hong Kong
Economic Times.

WAH LEE RESOURCES: Posts HK$75.57 million annual net loss
For the year ended June 30, Wah Lee Resources Holdings Ltd
recorded a net loss of HK$75.57 million. That was down from
a net loss of HK$404.965 million the previous year. Sales
were up, totaling HK$133.647 million compared with HK$1.259
billion for the prior year. The company's pretax loss was
HK$75.57 million, likewise down from a loss of HK$409.816
million for the prior year. Loss per share was 4.76 cents
this year compared with 25.82 cents a share last year.

In a statement, the company said the results released are
based on incomplete records and reflect the group's
financial affairs prior to the completion of its
restructuring. "They will be subject to further changes,
which may be material, upon the finalisation of the audit
of the group," the statement added.

The company expects the auditors' report to be a qualified
report "as a result of the liquidation of its subsidiaries
and the state of the books and records," according to the
written statement.


PT DHARMALA AGRINDO: Declared bankrupt
The Jakarta Commercial Court declared Dharmala Group unit
PT Dharmala Agrindo bankrupt after it failed to secure
approval from a majority of creditors for its 236.2 billion
rupiah debt restructuring proposal.

According to Judge Erwin Mangatasmalau after a court-
supervised voting session, the Indonesian Bank
Restructuring Agency (IBRA), representing 64.5 percent of
the company's total debts, voted to reject the proposal,
Mangatasmalau said. All other creditors, however,
representing 35.5 percent of the company's debts, voted to
accept the proposal.

Creditors other than IBRA include Rabo Bank with a 48.75
billion rupiah claim on the company, BNP Lippo Bank with a
29.5 billion rupiah claim and American Express with a claim
of 5.80 billion rupiah.

In the proposal, Agrindo said it could repay only 18.5
billion rupiah of the company's total 236.2 billion in
debts, and sought that the remaining debts should be
converted into equity. According to the latest appraisal,
Agrindo's total assets total some 28.8 billion rupiah,
Mangatasmalau said.

PT INDOCEMENT TUNGGAL PRAKARSA: Definitive debt rehab pact
PT Indocement Tunggal Prakarsa has signed "a definitive
agreement" with its creditors on a debt restructuring plan.

According to a letter from the company to the Jakarta Stock
Exchange, the company's shareholders have approved the
management's proposal for a US$1.1 billion debt-restruc-
turing plan. The plan restructures the debt over eight
years, and provides for a merger between Indocement and
affiliates PT Indocement Investama and PT Indo Kodeco
Cement (Indokodeco). Indocement is to be the surviving

The restructuring deal is scheduled for closure at the
year-end, at which timt Indocement and Indokodeco will be
merged, the company reported, adding that it already has
acquired the shares of Indokodeco which it did not
previously own.  After the merger, Indocement plans to
issue new shares to partly repay creditors -- including
strategic foreign investor Heidelberger Zement AG -- which
previously purchased US$70 million of Indocement debt.

"Heidelberger will only become an investor if certain
conditions are met," the exchange said in a statement.
"Among the conditions are Heidelberger's purchase of US$150
million of debt (including the US$70 million already held)
to be converted into equity, and shareholders approval,
including the approval of the government of Indonesia and
the Indonesian Bank Restructuring Agency as shareholders."

PT SURYAMAS DUTAMAKMUR: Allocates Rp50B to buy back debts
PT Suryamas Dutamakmur (SMDM) will prepare Rp50 billion for
the Corporate Liabilities Buyback Program (PPKP). The funds
will be used to buy back debts in the form of medium term
notes (MTN), bank loans and Suryamas Dutamakmur Bond I
issued in 1997.

For the purpose, Suryamas invited all creditors to
participate in PPKP, one of the debt restructuring programs
currently being discussed by the Steering Committee. Based
on information provided by Suryamas management, the company
will buy back all liabilities at 25% of that of the basic

"Creditors to be granted the right are those who have met
the requirements and offer invoices at the lowest price,"
company management explained.

Creditors who offered entire invoices at the same price
will be given more priority than those who only offered a
proportion of their invoices. Priority will also be given
to small creditors. Payment is to be conducted in cash, be
it dollars or rupiah.  Meanwhile, all fines, interest and
other penalties will be cancelled.

Suryamas has appointed PT Ernst & Young Consultants as
their independent counselor for the implementation of PPKP.
The company has also determined that January 8, 2001 will
be the last day for the offering, while January 9, 2001
will be the opening day for offering letters. Payment to
creditors will be made on January 12, 2001.

Suryamas is one of the listed companies categorized as
delisted due to negative equity. It is focused mainly in
operating residential estates, golf courses and hotel
management located in Rancamaya, Bogor. During the first
semester 2000, the company suffered Rp296.64 billion in
losses due to Rp294.05 billion in non-operating expenses.

By the end of June 2000, the company's negative equity
reached Rp61.89 billion. Liabilities reached Rp2.12
trillion, with Rp2.14 trillion in total assets.
(Indoexchange  06-Dec-2000)


DAEWOO MOTOR: More layoffs, less products ahead
A fresh labor-management dispute is looming at Daewoo
Motor, as unionists promise to resist alleged attempts to
lay off about 7,000 of the company's 18,000 workforce,
analysts said.  According to company executives, management
has expanded the number of planned layoffs from the
original 4,000 to over 7,000, in accordance with the
court's calls for more painful self-rescue steps. It also
cut its production target for next year from 870,000 units
to 560,000 units.

But the union fears the revised job cuts may lead to the
closure of the inefficient and outdated main plant in
Pupyong, west of Seoul, which currently employs about 7,200
blue-collar workers.  Labor unionists also plan to demand a
"very generous" severance pay package at the upcoming
consultation meeting with the management.

In a related development, the Ministry of Commerce,
Industry and Energy has decided to send a letter to the
court calling for its help in keeping Daewoo Motor afloat.
A ministry source said yesterday that the court is planning
to conduct due diligence on Daewoo Motor until next January
as part of the procedures for court receivership.

During the due diligence, the ministry will send in
suggestions to keep Daewoo Motor operating and to put it
back on track.  The ministry's move followed a meeting of
Vice Minister Oh Young-kyo Monday with top leaders of
Daewoo Motor's management and labor union in which joint
cooperation was discussed in search of early revival of the
ailing motor company.

Meanwhile, General Motors President Rick Wagoner said in a
press interview that the U.S. car maker will only purchase
profitable assets from Daewoo Motor. (Korea Herald 06-Dec-

HANYANG CORP.: Court to liquidate
WOOSUNG CONSTRUCTION: Court to liquidate
The Seoul District Court has decided to liquidate Hanyang
Corp. and Woosung Construction, both of which have been
operating under court supervision.

The two construction firms had been healthy until the end
of last year, with Hanyang ranking 18th nationally in terms
of sales and Woosung 37th in 1999. The court said it
decided to liquidate the two as both showed little hope of

In the case of Hanyang, its two largest shareholders,
state-run firms the Korea National Housing Corp. (KNHC) and
the Korea Asset Management Co. (KAMCO) decided that they
would no longer provide operational support and in the case
of Woosung, its debts have continued to snowball since late
last year. (Digital Chosun  05-Dec-2000)

SAEHAN GROUP: Suspected of taking out illegal loans
The Saehan Group is under investigation relating to charges
of having illegally taken out loans totaling 50 billion won
from banks before being placed under a workout program in
June this year, the Financial Supervisory Service said
yesterday.  The FSS is investigating Hanvit Bank, Saehan's
main creditor bank, about the conglomerate's suspected
funding scam.

"FSS investigators are scrutinizing the case," an FSS
official said. "In the course of a regular audit into
Hanvit, Saehan was found to have borrowed more than 50
billion won in trade finance from Hanvit and other banks."

The watchdog is scheduled to wrap up the probe Wednesday
but can extend it if necessary, the official said. The FSS
said that Saehan had fabricated export letters of credit
and borrowed over 50 billion won from Hanvit and five other
banks. The FSS claimed this happened between the second
half of last year and May this year.

"So far, Saehan has been confirmed to have taken out about
50 billion won with fake letters of credit," the official
said. "Investigators are looking into whether Lee Jae-kwan,
former group vice chairman, led the funding scam or whether
it was just a mistake."

A creditor bank official presumed that the conglomerate
must have resorted to expedient means to avert a debt
workout accord with creditors. (Korea Herald 06-Dec-2000)

SKM: Creditors to probe major shareholder's actions
The Financial Supervisory Service (FSS) has ordered the
creditors of audio and video-tape manufacturer SKM to
investigate whether largest shareholder Chey Jong-wook is
guilty of dereliction of duty.

Creditors are expected to launch a probe to determine
whether Chey, who is the son of deceased SK group founder
Chey Jung-hyun, misappropriated funds borrowed from them to
keep SKM afloat. The FSS confirmed Tuesday that the firm
had declared bankruptcy without consulting its creditors
and applied for court receivership, meaning huge potential
losses for creditors. Chey is a guarantor on the firm's

Creditors had classified SKM as having a good chance of
survival in early November, when the government was
planning to institute a mass liquidation of non-viable
firm. The firm, however, went ahead and declared bankruptcy
on November 22. (Digital Chosun  05-Dec-2000)


CELCOM MALAYSIA: Slow pay with dues results in downgrading
CELCOM Malaysia, the owner of Malaysia's biggest mobile
phone company, has been slow in paying its dues to one of
its units which manages a fibre optic network, said a
Malaysian ratings company.

Celcom Timur, which operates a fibre optic network in
eastern Sarawak state, is faced with "slow receivable
collection from Celcom", its largest customer, said Rating
Agency Malaysia Bhd, or RAM. This has "put a strain on
Celcom Timur's liquidity position." As a result, RAM has
downgraded Celcom Timur's RM100 million (S$46 million) debt
facility to non-investment grade to "reflect the credit
risk" of Celcom.

Celcom is controlled by Technology Resources Industries Bhd
(TRI). Last week, TRI said Celcom Timur, also 40 percent
owned by Sarawak Electricity Supply Corp, filed a RM102.6
million claim against Celcom. Celcom is disputing the claim
and the matter will be heard in court next month.

TRI has posted losses for three years through Dec 31, 1999.
It is in the midst of rescheduling its debt after it
defaulted on US$200 million (S$350 million) worth of bonds
in October 1999, and a US$175 million issue in November.
(Business Times 06-Dec-2000)

HAP SENG CONSOLIDATED: Gives fresh funds to parent
MALAYSIAN MOSAICS: Receives fresh funds from affiliate
Hap Seng Consolidated Bhd's RM400 million cash advance to
its parent company, Malaysian Mosaics Bhd (MMB), was to
free the latter from debts and allow it to embark on its
expansion programme, the company says.

In explaining the move to extend the loan, Hap Seng's
chairman Chan Hua Eng said the advance would effectively
"clean up" the entire company of its debts.  Speaking at
Hap Seng's extraordinary general meeting, he said, "Let me
assure you this, like we have always assured in the past,
we know the management of MMB and we will ensure that the
money will be paid off."

He was responding to persistent questions by shareholders
on the company's rationale for providing the cash advance.
MMB is expanding the export market for its tiles. The cash
advance will be used to pay its RM310.43 million bank
borrowings with the balance for working capital.

Hap Seng's chief executive John Madsen said the company
would not be at a disadvantage because the cash advance
could earn higher interest compared to fixed deposits.
The clarifications by Chan and Madsen brought relief to
minority shareholders, who voted for the resolutions.

Shareholders also approved Hap Seng's acquisition from MMB
of 12 million shares in Si Khiong Industries Sdn Bhd and 30
million shares in Sasco Sdn Bhd for RM173 million. Hap Seng
is cash rich after selling its stakes in Carlsberg Brewery
(M) Sdn Bhd and Hainan Euro-Asia Brewery Company Limited
this year.

Madsen expects contribution from Hap Seng's e-commerce
operations to increase to a third of its turnover in the
financial year ending January 2002, following the
acquisition of a 35 per cent stake in Singapore-based
Globalcom Information Services Pte Ltd.

Madsen said its plantation division would likely account
for another one-third of the earnings with the remainder
coming from palm oil downstream activities and investments.
The acquisition of food-processing companies Lam Soon Hong
Kong and Vredelco Pte Ltd is expected to boost
contributions from downstream activities. (The Edge Daily

RASHID HUSSAIN BHD: Restructuring stalled
Two months after its unveiling, Rashid Hussain Bhd (RHB)'s
comprehensive restructuring scheme appears to have hit a
wall as two directors, representing the interests of a
substantial shareholder in the financial services group,
opposed the way the exercise is being carried out.

Signs that Malaysian Resources Corporation Bhd (MRCB) may
not support the restructuring scheme surfaced when its two
representatives -- Datuk Zahari Omar and Jamil Bidin --
were said to have opposed the exercise at RHB's board
meeting last month.  Zahari and Jamil are directors of
MRCB, which owns a substantial 22.69 per cent stake in RHB.
Zahari is also MRCB's executive vice president. had reported in October of talks that MRCB
was not happy with RHB's proposed exercise. MRCB executive
chairman and president Datuk Seri Abdul Rahman Maidin had
said then that the company would make an announcement on
the matter at the right time.

Last week, Zahari and Jamil appealed to the authorities to
intervene in the matter, alleging the possibility that the
proposed scheme may contravene some regulations.  They have
written to the Kuala Lumpur Stock Exchange (KLSE),
Securities Commission and Bank Negara to express their
concerns over the scheme. It is learnt that the MRCB board
will meet soon to look into the matter and the next course
of action.

Among MRCB's contentions are that the proposed scheme had
not obtained the RHB board's approval when it was announced
on Sept 25; the need to ratify the variation of the rights
issue in the proposed scheme; and the failure to disclose
to the KLSE the dissension by the two directors on certain
issues relating to the exercise.

Another major issue that was brought up concerns the
dilution of RHB's stake in RHB Capital Bhd to below 50 per
cent from the current 55.4 per cent, resulting from the
full conversion of the proposed warrants issue by the
latter.  It is learnt that the dissenting directors also
want RHB shareholders to have a say in the latter's
proposed restructuring scheme.

Other than the proposed rights issue and the employees
share option scheme, sources said the Sept 25 announcement
did not mention that the proposed scheme is conditional
upon the approval of RHB shareholders. It is learnt that
RHB is seeking the authorities' approval to allow it to
vote at RHB Capital's extraordinary general meeting.

RHB had on Sept 25 announced a massive restructuring scheme
to split its stockbroking subsidiary (RHB Securities) from
the banking intermediate holding company (RHB Capital).
Both RHB Securities and RHB Capital will continue to come
under RHB.

Parties familiar with the companies said the RHB board met
twice last month to trash out the issues, but in vain. As a
result, they said the MRCB representatives on the board
wrote to the authorities to express their views on the
restructuring scheme and seek their intervention. (The Edge
Daily 05-Dec-2000)


NATIONAL STEEL CORP.: Creditor banks agree to plant lease
Large creditor banks of National Steel Corp. (NSC) have
decided to let the debt-laden firm lease out its Iligan
plant, but stressed that their approval must be sought
before any deal is signed.

NSC liquidator Danilo Concepcion scored the banks'
proposal, saying this was a subtle way of shooting down his
request to the Securities and Exchange Commission (SEC) for
an authority to enter into a lease agreement.

"All that they would do is withhold their approval to
render useless the authority that this honorable commission
will grant the liquidator," Concepcion told the SEC.

In a supplemental opposition signed by their represen-
tatives, Land Bank of the Philippines, Global Business Bank
and Credit Agricole Indosuez said Concepcion's request to
enter into a lease agreement was "patently against
the interest" of NSC's creditors. However, should the
commission decide in favor of Concepcion's proposal, the
banks said the liquidator should first secure their
approval before awarding a lease contract to any entity.

The creditor banks also said awarding the lease should be
done only after conducting a public auction subject to
acceptable pre-qualification requirements. In his rebuttal,
Concepcion reiterated his request for an authority to enter
into a lease agreement to preserve the value of NSC's
Iligan plant that, he claimed, has been deteriorating.

Concepcion said the steel firm's creditor banks have
allowed the roof of the hot mill to deteriorate and that
repairing it would cost at least P6 million and take up
about two to three months. He said he would run out of
funds by Dec. 15 and the creditors have not mentioned
anything about advancing the money needed to repair the

Concepcion told reporters that NSC has received two offers
to lease the Iligan plant from Allengoal Steel Fabrication
and Trading and Cathay Pacific Steel Co., a firm controlled
by tobacco tycoon Lucio Tan's associates, Benjamin Chua and
John Ng. Concepcion said he would invite NSC's potential
white knights, Glencore International AG and Ispat Interna-
tional NV, to also submit lease proposals. (Philippine
Daily Inquirer  06-Dec-2000)


IPCO INT'L: Stake sell to precipitate a loss
Mainboard-listed Ipco International plans to sell its 40
percent stake in Malaysian port operator Lumut Maritime
Terminal to Halim Rasip Holdings for RM20 million (S$9.2
million), which will result in an extraordinary loss for
the company. The sale involves 3.92 million ordinary shares
of RM1 each and 8 million preference shares of one sen

"This will result in a consolidated extraordinary loss of
approximately S$3.38 million for Ipco's financial year,
which ends on April 30, 2001," a company statement said.
Completion of the sale is expected within 180 days and is
conditional on Halim obtaining approvals from the relevant

MEASUREX HOLDINGS: To get fresh funds, exit judicial mgmt.
Measurex Corporation Bhd has signed a memorandum of intent
with Eaton Drive Investments Ltd and Pentcost International
Ltd to inject fresh funds of about US$8 million (RM30.4
million) into Measurex Holdings Pte Ltd (MH) and its

Eaton Drive and Pentcost, which are incorporated in the
British Virgin Islands, collectively hold 49 per cent
stake. Measurex Corp holds the remaining 51 per cent equity
interest in MH, an investment holding company in Singapore.
In a statement to the Kuala Lumpur Stock Exchange today,
Measurex Corp said the memorandum was signed among the
three parties on Nov 30.

It said fresh funds, which will be in the form of loans
from the three shareholders, were required to restructure
the finances of the MH group and to remove it out of
judicial management.  Among the salient points of the
memorandum, Eaton and Pentcost are required to acquire a
two per cent stake comprising 200,000 MH shares at RM4 each
from Measurex Corp on or before Dec 31, 2000. This will
reduce Measurex Corp's stake to 49 percent.

Measurex Corp said Eaton and Pentcost intend to make an
initial loan of US$1.7 million (RM6.46 million) to the MH
group.  It added that the injection of fresh funds would be
made pursuant to a financial restructuring plan and legal
agreements to be entered into between the creditors of MH
group and the three shareholders. (The Edge Daily 06-Dec-


KRISDA MAHANAKORN: Signs pair of rehab agreements
Krisda Mahanakorn has signed debt restructuring agreements
with two holders of convertible debentures totaling
Bt446.45 million -- or 47.19 percent of outstanding bond
value -- and 2.04 per cent of its total debts under
restructuring. Previously, the company signed debt
restructuring deals with Krung Thai Bank, Citibank, the
state-owned Asset Management Corp, National Finance, Asia
Credit, Thai Military Bank, Ekachart and Bangkok Capital
Alliance. Creditors now own 63.27 per cent of outstanding
loans under restructuring.

RAYONG TANK TERMINAL PLC: Court rejects rehab plan
The Central Bankruptcy Court rejected a debt restructuring
plan for Rayong Tank Terminal Plc, a subsidiary of Thai
Petrochemical Industry Plc (TPI), only a week after
creditors did likewise.

Meanwhile, Sippanonda Kedutat, chairman of Effective
Planners Plc (EP), the plan administrator of TPI, said
there would be no layoffs should the court approved the
debt revamp plan.  The court based its rejection order on
Article 90/48 of the Bankruptcy Act. What this means for
Rayong is that it may opt to either exit the court
supervised debt restructuring process through an out-of-
court settlement, or re-apply to enter the process.

Samsung International is Rayong's major creditor, holding
Bt3.03 billion in debt, the company has a total debt of
Bt4.16 billion.  The court however postponed its ruling on
the debt revamp plans of another two TPI subsidiaries, TPI
Power and TPI Polyol, to Tuesday (December 12), because the
debtor firms still opposed the plans. (The Nation  07-Dec-

THAI PETROCHEM.INDUS.: Execs mulling civil court action
Thai Petrochemical Industry executives are looking at
filing an emergency petition to the Civil Court against the
decision by plan administrators to turn down a request for
new crude oil purchases.

Two oil refineries and 10 plastic pellet factories at TPI's
Rayong complex have shut down after Effective Planners
turned down a request to procure new crude oil as a raw
material for production. Silapin Buranasilapin, TPI's
assistant vice-president, said the firm's legal department
was considering asking the Civil Court for an emergency
inquiry into the decision.

The petition is expected to be filed this week. TPI had
filed a similar petition with the Central Bankruptcy Court.
But Mr Silapin said the court had indicated that it was
uncertain whether the case fell under its jurisdiction.
Anthony Norman, managing director of Effective Planners,
declined to comment.

Effective Planners, appointed by major TPI creditors to
draft and implement the $3.2-billion debt restructuring
plan, had earlier indicated that refining capacity would
have to be cut back to 90,000 barrels per day this month
and 70,000 per day in January due to working capital

While planners agree that running the refinery below the
optimum 125,000 barrels per day would reduce profitability,
the cutback was necessary to maintain cashflow. One
executive at Effective Planners said the cash crunch had
emerged because of TPI's expenditure of $145 million to
finance construction of a new oil refinery and tank farm,
as well as the expansion of port facilities in Rayong last
year. Rising oil prices, coupled with the slide in the
baht, had also led to the liquidity crunch.

Effective Planners argues that cutting back production is
necessary as creditors refuse to extend new loans until the
restructuring plan is formally ratified by the courts.
But Mr Silapin said the new investments represented normal
business and had been made openly. The liquidity problems
stemmed more from conditions of the rehabilitation plan
itself, which called for TPI to make a $45 million initial
payment to creditors and Effective Planners once final
court approval was received, he said.

Meanwhile, Charkrapach Chaiwansith, a representative of the
TPI employees' committee, said staff would postpone further
rallies until Dec 12. (Bangkok Post 06-Dec-2000)

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