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     T R O U B L E D   C O M P A N Y   R E P O R T E R

                               A S I A   P A C I F I C

           Tuesday, December 19, 2000, Vol. 3, No. 246

                                        Headlines


* A U S T R A L I A *

ANSETT: Cuts staff as market share slides
IAMA LTD: Posts annual loss of $108M
IOCOM: Forecasts 1H loss, announces restructure
NATIONAL AUSTRALIAN BANK: Moves to invalidate creditor mtg.
PASMINCO: Has faith but not investors


* C H I N A  &  H O N G  K O N G *

ABC COMMUNICATIONS HLDGS.: Posts HK$43.45M 1H loss
CLIMAX INT'L CO.: Posts HK$27.7M 1H net loss
I-CHINA: Posts $134M 1H loss
iREGENT GROUP: Falls into red on associates' results
ITC CORP.: Posts HK$88.68M 1H net loss
JOINSTATE ENTERPRISES(HLDGS)LTD: Facing winding up petition
MILLION GREAT DEVELOPMENTS LTD: Facing winding up petition
MILLION STEP LTD: Facing winding up petition
NICE HONOUR INT'L LTD: Facing winding up petition
PIONEER GLOBAL: Posts HK$4.9M 1H loss
SEAPOWER RESOURCES INT'L: Posts H1 net loss
SKY LAKE INDUSTRIES LTD: Facing winding up petition
VASTHUGE LTD: Facing winding up petition
VICTORY WAY DEVELOPMENTS LTD: Facing winding up petition


* I N D O N E S I A *

PT GERIA WIJAYA PRESTIGE: Claims IBRA seeks illegal seizure


* J A P A N *

TOKYU CORP: Posts US$148.4M group net loss for 1H


* K O R E A *

KOREA TELECOM: Facing possibility of a strike


* M A L A Y S I A *

TONGKAH ELECTRONICS: Measurex Corp to take over loss maker


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

ASB HOLDINGS: Creditors seek P71M holiday `gift'
BW RESOURCES CORP.: D.Tan,others owe PhP984M in back taxes
CALTEX (PHIL.): Forecasts P2B annual loss


* T H A I L A N D *

B. GRIMM ENGINEERING SYSTEMS: Faces delisting due to losses
PREECHA GROUP: Faces delisting due to losses
SINO-THAI ENGINEERING: Faces delisting due to losses
SRIVARA REAL ESTATE: Faces delisting due to losses
TANAYONG: Faces delisting due to losses
UA WITHAYA EQUIPMENT: EGAT project delay could bankrupt


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

ANSETT: Cuts staff as market share slides
-----------------------------------------
High fuel prices and falling market share are forcing
Ansett and its owner Air New Zealand to seek voluntary
staff redundancies of more than 1,000 in an effort to stem
mounting losses.

The cuts come as the group suffers continued falls in
passenger load factors, which are down 2.9 per cent for
October alone. Both airlines only recorded a combined 0.08
per cent rise in passengers carried in October. On some
routes where Impulse Airlines and Virgin Blue are
competing, the passenger market has grown by 35 per cent.

The drive to cut staff numbers comes as Qantas lifts its
share of the domestic market to nearly 57 per cent while
Ansett's share drops below 41 per cent - an all-time low.
Five years ago the airline commanded more than 50 per cent
of the local market. Ansett is understood to be trading at
a loss because of the fall of the Australian dollar against
the US dollar, which affects fuel costs and lease payments
for aircraft.

Ansett executives have conceded that its market share could
drop below 40 per cent early next year, and that only
savage staff cuts will restore profitability. Over the past
four months 300 middle management at the group have been
made redundant.

An Ansett spokesman said that no target had been set and
the airline hoped that the voluntary package would prove
popular with staff. But he would not be drawn on what
action would be taken if the staff did not take up the
voluntary packages. Analysts say that several thousand
staff will need to go.

"They had hoped to cut the staff by natural attrition,
voluntary redundancy and growing the business. However, a
weakening jobs market and falling market share blow that
strategy out of the water," one Sydney analyst said. (South
China Morning Post 16-Dec-2000)

IAMA LTD: Posts annual loss of $108M
------------------------------------
The magnitude of the task ahead for Wesfarmers Ltd in
restructuring IAMA Ltd became clearer after the
agribusiness group announced it had recorded a full-year
net loss of $108.25 million.  By comparison, the company
posted a $13.33 million net profit for the corresponding
period last year. Sales this year fell to $938 million,
down from 1.06 billion.

IOCOM: Forecasts 1H loss, announces restructure
-----------------------------------------------
Information outsourcer Iocom warned today it would report a
loss for the half year to December 31, 2000, because of
investment and after a major contract failed to eventuate.

Iocom said that heavy investment in its key services
business Iocom Solutions had been made in preparation for a
new customer, including gearing up for a new 700seat
outsourcing environment.

"However, the contract did not eventuate and the group's
profit forecast for 2001 may be impacted," Iocom said.
"Iocom will report a negative cash flow and a loss for the
period to 31 December 2000 due to its investment in the
company's future."

Iocom also announced a restructure of the group, including
its distribution business, MUA.  "MUA ... has not performed
to the group's expectations. Iocom will consequently not
issue any of the shares allocated for the acquisition,"
Iocom said.

Iocom acquired 100 per cent of distribution company MUA in
March for $5 million in cash and shares.  The cash
component of the acquisition was to be funded by a
placement of 2.5 million shares at $0.75 cents and existing
cash reserves.  Iocom listed in December 1999 and
specialises in IT department outsourcing, IT services and
training.

The MUA acquisition was expected to add about $25 million
to Iocom's 2001 revenue, boosting forecasted revenue for
the Group to $32.5 million for the 2001 year.  The
restructure would involve the group refocusing its efforts
on its core businesses of services, software and computer
telephony integration, and involve abnormal writedowns.

"Iocom continues to sign many new customers in its key SME
market, however a restructure of the group will involve the
abnormal writedown of expenses relating to the rampup and
new business investments," Iocom said.

The group has invested heavily in its core businesses over
the past six months, including the purchase of Melbourne-
based IBS, the establishment of UBSP Inc in the US, and the
global release of a new customer relationship management
product, FullCRM.  IBS has experienced recent strong growth
and is expected to be cash flow positive by the end of June
2001, the company said.

"The Fortress firewall and intellectual property that was
purchased from IBS has been fully integrated into Iocom
Solutions. The product has now begun selling and is very
positive for the group's future," Iocom said. (Fairfax I.T.
18-Dec-2000)

NATIONAL AUSTRALIAN BANK: Moves to invalidate creditor mtg.
-----------------------------------------------------------
The battle between National Australia Bank (NAB) and John
Maconochie continued on Dec. 15 as NAB asked a court to
declare a creditors' meeting of Market Holdings, one of
Maconochie's companies, invalid. Market Holdings' major
asset is its claim against NAB.

It is one of two companies suing NAB over its alleged
failure to go ahead with commercialisation of AUSMAQ,
Maconochie's electronic market platform. Proceedings in the
main $A50 billion claim against NAB have been wound-up for
the year and will re-start in 2001. (The Australian
Financial Review 15-Dec-2000)

PASMINCO: Has faith but not investors
-------------------------------------
Lead and zinc miner Pasminco is facing a crisis of
confidence among investors as its share price dangles at a
record low of 68c in the wake of the company's latest
profit warning.

And the resignation on Friday of the company's chief
financial officer, Ms Browyn Constance, has triggered
speculation that further senior heads could go as the
company attempts to win back market support. Disappointing
financial and operational performances, bad bets on the
currency and a failed class action against Pasminco have
caused the company's share price to slump 66 percent this
year, off a high of $1.70 in January.

Shareholders have already called for Pasminco chairman Mr
Mark Rayner and chief executive Mr David Stewart to step
aside. Instead, Pasminco has implemented a wide-ranging
business improvement program aimed at saving $100 million
by the end of next year in an attempt to regain confidence.

"I am confident that the cost reduction and business
improvement programs we have commenced will turn the
company around," Mr Stewart said. "Management is focused on
delivering a significant and sustainable improvement in
operational performance, reducing debt and restoring
shareholder value."

During the first quarter of 2001 Pasminco will conduct an
"unrestricted and wide ranging" review of all aspects of
its business, including a review of all its assets.
"A comprehensive program such as that under way will
necessarily involve significant adjustment costs and will
challenge all of our people," Mr Stewart said.

A fire at Pasminco's largest zinc smelter at Hobart is the
latest in a string of operational problems to plague the
company. That fire, expected to result in a loss of 15,000
tonnes of production at a cost of $20 million, will reduce
first-half earnings by about $20 million, forcing Pasminco
to post a loss for the period. (South China Morning Post
18-Dec-2000)


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

ABC COMMUNICATIONS HLDGS.: Posts HK$43.45M 1H loss
--------------------------------------------------
Paging operator ABC Communications Holdings Ltd. recorded a
net loss of HK$43.45 million for the six-month period ended
Sept. 30, a turnaround from a net profit of HK$16.07
million it posted for the same period a year earlier. Loss
per share was 9.31 HK cents compared with earnings per
share of 4.03 HK cents for the previous period. Revenue
fell 21 percent to HK$30.65 million, and an interim
dividend of 1 HK cent will be distributed, down from 2 HK
cents a year earlier.

CLIMAX INT'L CO.: Posts HK$27.7M 1H net loss
--------------------------------------------
Climax International Company Ltd., a paper product maker,
recorded a net loss of HK$27.7 million for the six-month
period ended Sept. 30. That was down slightly from a
HK$29.96 million loss for the same period a year earlier.
Loss per share was 7.38 HK cents compared with 7.99 HK
cents a year for the same period the year before. Revenue
fell 10.6 percent to HK$136.6 million. No interim dividend
was proposed.

I-CHINA: Posts $134M 1H loss
----------------------------
I-China Holdings Limited recorded a loss of $134 million
for the six-month period ended Sept. 30, up over 300
percent from a loss of $47.22 million for the same period
last year. Turnover dropped 94 percent to $2.7 million
during the period.  The company had to make upwards of $81
million in provisions for its properties and investments.
Its loss per share was 26.35 cents and no interim dividend
will be distributed.

During the period, I-China ceased making payments on $589
million in debts, principal together with accrued interest.
It is in talks with creditors on restructuring. I-China
will not initiate further financing, due to a capital
shortage and the fact its properties are now lower than
their purchase prices.

iREGENT GROUP: Falls into red on associates' results
----------------------------------------------------
Heavy losses from associated companies have led to
investment company iRegent Group reporting a loss of
US$23.96 million for the six months ended Sept. 30,
compared with a profit of US$39.23 million for the same
period a year ago.

Associated companies reported losses of US$21.6 million
compared with US$19.94 million in profits a year ago.
The loss per share was 2.11 US cents, compared with a
profit per share of 4.09 US cents a year ago. No interim
dividend will be paid.

The associated companies reported that they lost US$10
million on their investment portfolios compared with
US$877,000 in losses last year.  Russia - iRegent's most
profitable area of operations last year - has become the
worst performing market with a loss of US$2.4 million. The
company made a loss of US$327,000 in Eastern Europe. South
Korea was the most profitable market for iRegent, with
earnings of US$2.76 million.

Last month Seoul authorities asked prosecutors to
investigate iRegent director Jim Mellon and two Korean
nationals over alleged share-price manipulation involving
associated brokerage Regent Securities in Korea. Mr Mellon,
who denies the allegations, temporarily stepped down as
chairman of iRegent this month to allow the company to
separate itself from the investigations in Korea. (South
China Morning Post 18-Dec-2000)

ITC CORP.: Posts HK$88.68M 1H net loss
--------------------------------------
Construction management company ITC Corp. recorded a net
loss of HK$88.68 million for the six months ended
Sept. 30, a turnaround from a net profit of HK$43.6 million
for the same period a year earlier. Loss per share was 18.6
HK cents compared with earnings per share of 7.9 HK
cents the previous year. Revenue fell 34.5 percent to
HK$31.29 million. No interim dividend will be distributed.

JOINSTATE ENTERPRISES(HLDGS)LTD: Facing winding up petition
-----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for January 10, 2001, on the
petition of Sin Hua Bank Limited for the winding up of
Joinstate Enterprises (Holdings) Limited. A notice of legal
appearance must be filed on or before January 9.

MILLION GREAT DEVELOPMENTS LTD: Facing winding up petition
----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for January 3, 2001, on the
petition of Kincheng Banking Corporation for the winding up
of Million Great Developments Limited. A notice of legal
appearance must be filed on or before January 2.

MILLION STEP LTD: Facing winding up petition
--------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for February 7, 2001, on the
petition of Yuen Wai Sun for the winding up of Million Step
Limited. A notice of legal appearance must be filed on or
before February 6.

NICE HONOUR INT'L LTD: Facing winding up petition
-------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for January 3, 2001, on the
petition of Kincheng Banking Corporation for the winding up
of Nice Honour International Limited. A notice of legal
appearance must be filed on or before January 2.

PIONEER GLOBAL: Posts HK$4.9M 1H loss
-------------------------------------
Property investment company Pioneer Global Group Ltd.
recorded a net loss of HK$4.9 million for the six-month
period ended Sept. 30, a turnaround from a net profit of
HK$9.3 million the year before. Loss per share was 0.98 HK
cent compared with 1.85 HK cents for the same period last
year. Revenue fell 66 percent to HK$31.2 million. No
interim dividend will be distributed.

SEAPOWER RESOURCES INT'L: Posts H1 net loss
-------------------------------------------
Property investor Seapower Resources International,
operator of cold storage and warehousing services, recorded
a net loss of HK$51.86 million for the year ended Sept. 30,
up stantially from a loss of HK$9.28 million a year ago.
Loss per share was 3.35 HK cents compared with 0.72 cents
the year before. Revenue fell 35 percent to HK$113.8
million. No interim dividend was proposed.

SKY LAKE INDUSTRIES LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for January 3, 2001, on the
petition of Kincheng Banking Corporation for the winding up
of Sky Lake Industries Limited. A notice of legal
appearance must be filed on or before January 2.

VASTHUGE LTD: Facing winding up petition
----------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for January 31, 2001, on the
petition of The China State Bank Limited for the winding up
of Vasthuge Limited. A notice of legal appearance must be
filed on or before January 30.

VICTORY WAY DEVELOPMENTS LTD: Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for January 3, 2001, on the
petition of Kincheng Banking Corporation for the winding up
of Victory Way Developments Limited. A notice of legal
appearance must be filed on or before January 2.


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

PT GERIA WIJAYA PRESTIGE: Claims IBRA seeks illegal seizure
-----------------------------------------------------------
Property firm PT Geria Wijaya Prestige, owner of the Kuta
Paradiso Hotel in Bali, is asserting that the Indonesian
Bank Restructuring Agency (IBRA) is "illegally" trying to
seize the hotel over a US$17 million debt with the
ailing Bank PDFCI.

The Jakarta Post quotes Wijaya Prestige president Harijanto
Karjadi as saying that the Supreme Court ruled on Sept. 22
that all parties involved in the dispute must not take any
legal action pending the issuance of a Supreme Court
verdict. Karjadi further siad that IBRA is not in a
position to take legal action against his company because
the debt was with PDFCI, which has already merged into
Bank Danamon. In addition, Wijaya Prestige has fully repaid
its debt as shown in a report issued by Bank Danamon, he
said.

Company legal advisor Jimmy Hermawan said the debt had a
seven-year maturity, including a 24-month grace period
starting Nov 28, 1995. The company borrowed the US$17
million from a bank syndication led by Bank PDFCI on Nov
28, 1995. He said PDFCI demanded that Wijaya Prestige fully
repay the loan six months ahead of schedule.

Not able to comply with the request, it was sued by the
bank in the Denpasar court in Bali in April 1998,
liquidation of the hotel via an auction being demanded.
The firm in turn filed a suit against PDFCI with a Jakarta
court and the Denpasar court, and won the case in both
courts, as well as in higher courts, Hermawan said.
He said IBRA, surprisingly, issued a letter on Oct 11 to
the police chief in Bali to help the agency seize the
hotel, despite the Supreme Court ruling.


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

TOKYU CORP: Posts US$148.4M group net loss for 1H
-------------------------------------------------
Tokyu Corp. recorded a consolidated net loss of 16.7
billion yen (US$148.45 million) for the half-year ended
Sept. 30. That was an improvement from its October forecast
of a 25 billion yen net loss.

The results were mainly attributed to a strong performance
of its group companies and a smaller investment loss based
on equity-method accounting. Consolidated sales totaled
447.9 billion yen, generating an operating profit of 37.2
billion yen.  On a parent-only basis, Tokyu experienced
increased revenue from its railway operations, but the
downsizing of its real estate business brought an 18
percent decline in operating profit to 28.6 billion yen
from the previous year.

Subsidiary Tokyu Construction Co. increased its operating
profit by about 2 billion yen, thanks to profitable
projects and cost-reduction efforts. Tokyu Tourist Corp.
recorded an operating loss of 2.5 million yen. Affiliate
Tokyu Department Store Co. booked part of its restructuring
losses in the second half, thereby reducing its equity-
method net loss by 3.1 billion yen. Tokyu Construction Co.,
meanwhile, contributed by improving the profitability of
its house-building business.

For the full year ending March 2001, Tokyu is expected to
post a group net loss of 44 billion yen with the booking of
an extraordinary loss -- a one-time charge of 69.5 billion
yen for amortizing shortfalls in retirement obligations.
By comparison, in the previous year, the company recorded a
group net profit of 1.8 billion yen.


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

KOREA TELECOM: Facing possibility of a strike
---------------------------------------------
Korea Telecom Corp. is in talks with union workers in
efforts at averting a strike that could cripple the
nation's top telephone company. The union workers are
protesting government privatization plans that could lead
to job cuts.

The union held a rally in downtown Seoul Sunday and called
for a strike to begin at 9 a.m. Monday. The strike was
delayed as talks between the company and labor continued.

About 60 percent of the union's 38,000 workers voted Dec. 6
to go on strike at the company. About half the company's
44,000 total workers are prepared to walk off the job,
according to the union. A strike could obstruct government
plans to find overseas investors for the company, which
owns virtually all of Korea's local phone lines and stakes
in the second-largest cellular company and Internet service
provider.


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

TONGKAH ELECTRONICS: Measurex Corp to take over loss maker
----------------------------------------------------------
Asserting that its acquisition would compliment its
business, Measurex Corporation Bhd has offered RM3 million
to parent Tongkah Holdings Bhd for 10.2 million shares in
printed circuit board assembler Tongkah Electronics Sdn Bhd
(TESB).

Measurex confirmed it had entered into a conditional share
sale agreement with Tongkah Holdings to acquire its entire
51 percent stake in TESB. Goldtron Electronics (S) Pte Ltd
holds the balance 49 percent. TESB recorded an audited
after-tax loss of RM17.4 million for the year ended June
30, 2000. Its net tangible assets as of Oct 31, 2000 was
negative RM28.89 million.


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

ASB HOLDINGS: Creditors seek P71M holiday `gift'
------------------------------------------------
Individual creditors of ASB Holdings Inc., a member of
property developer Luke Roxas' beleaguered ASB Group of
Companies, is demanding the release of P71 million out of
P3.9 billion the company owes.

Kenneth Ty, one of over 700 individual creditors of ASB
Holdings, said most of the company's creditors would picket
the ASB Center in Makati tomorrow to demand that Roxas
release P71 million to them as a token of good faith this
Christmas. In the middle of the year, Roxas borrowed and
later released P71 million to individual creditors on a
pro-rata basis to appease them.

The SEC has granted the ASB Group relief on P12.7 billion
worth of debts up to the end of this year. The commission
is expected to issue a decision on whether to approve a
proposed rehabilitation plan submitted by the group. The
interim receiver of the ASB Group has advised the SEC to
override the objections of secured creditors and approve
the group's proposed rehabilitation plan subject to changes
recommended by unsecured creditors.

ASB group interim receiver Fortunato Cruz said unsecured
creditors and contractors approved the rehabilitation plan
although secured creditors were against it. Cruz
recommended that the SEC override the secured creditors'
objections because disapproval of the rehab plan would
"greatly prejudice other creditors who will be left unpaid,
perhaps totally."

He said if the plan is disapproved and creditors banks
eventually foreclose on ASB group's assets, the group will
not be able to pay obligations to 172 individual unsecured
creditors with an exposure of P3.95 billion and 317
contractors with an exposure of P58 million and will also
not be able to deliver sold units to 725 buyers.

The proposed rehabilitation plan for the ASB group broadly
calls for the sale of ongoing projects and dacion en pago
(payment in kind) arrangements with secured creditors. The
plan also entailed inviting unsecured creditors to purchase
real estate parcels and other assets and set-off the amount
of their outstanding claim against the purchase price.

The rehabilitation plan essentially provides for most of
the balance of assets following dacion en pago agreements
with secured creditors to be placed in an asset pool for
the benefit of the other creditors who will be given
certificates of participation in the pool. (Philippine
Daily Inquirer 19-Dec-2000)

BW RESOURCES CORP.: D.Tan,others owe PhP984M in back taxes
----------------------------------------------------------
Businessman Dante Tan and 53 other investors of BW
Resources Corp. (BWRC) stocks have been determined to owe
the government about 984 million Philippine pesos ($19.66
million at PhP50.05=$1) in capital gains and documentary
stamp back taxes.

The conclusion was made by a task force of the Bureau of
Internal Revenue (BIR), which began an investigation into
BWRC stocks transactions following President Joseph
Estrada's directive made through Finance Secretary Jose T.
Pardo. In a report to Malaca¤ang, Mr. Pardo said
preliminary computations made by the BIR showed Mr. Tan and
other BWRC investors were found to have a total
deficiency of 973.9 million Philippine pesos ($19.46
million) in capital gains taxes (including surcharges and
penalties) and PhP10.8 million ($.216 million) in
documentary stamps taxes.

The figures include over-the-counter transactions of BWRC
stocks made through the Philippine Depository, Inc. (PCDI).
Mr. Pardo, who exercises direct supervision over the BIR,
the agency being under the Finance department, said tax
deficiency assessments were already issued to Mr. Tan and
the 53 other BWRC investors, formally informing them
about their obligations.

The Finance chief, however, noted that initial feedback
received by the BIR indicated that "a number of BWRC
investors who were issued preliminary notices of
assessments have already indicated through their respective
stockbrokers that they are willing to pay the deficiency
assessments."

Mr. Pardo added that the BIR expects the amount to increase
once it completes its verification of all BWRC "sell
transactions" made through PCDI. Last August, Mr. Pardo
said would start collecting PhP500 million in back
taxes from Mr. Tan and eight brokerage firms involved in
insider trading and price manipulation of BWRC shares.

The alleged price manipulation and insider trading of BWRC
shares uncovered late last year is labelled as the worst
scandal to hit the local bourse, dragging share prices to
record lows. Even the president has admitted the scandal
has scared away foreign investors.

Former Securities and Exchange Commission chairman Perfecto
R. Yasay, Jr. had also accused the President of intervening
and trying to influence him to clear Mr. Tan from any
involvement in the scandal. Mr. Yasay's allegations
forms part of the four charges of graft and corruption,
bribery, betrayal of public trust and culpable violation of
the Constitution against Mr. Estrada before the Senate now
sitting as an impeachment tribunal.

The BWRC case is now also at the Department of Justice
pending the completion of a preliminary investigation to
determine whether there is sufficient evidence to file
criminal charges against Mr. Tan and several firms
allegedly involved in the price manipulation. (Business
World  18-Dec-2000)

CALTEX (PHIL.): Forecasts P2B annual loss
-----------------------------------------
Petroleum company Caltex (Philippines) is projecting an
annual loss of 2 billion pesos when it closes its books on
this financial year end Dec. 31. Caltex chairman Nicholas
Florio attributed the projected net loss to increased pump
prices and the peso's depreciation. Meanwhile, the company
downplayed rumors of a price rollback next month.


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

B. GRIMM ENGINEERING SYSTEMS: Faces delisting due to losses
PREECHA GROUP: Faces delisting due to losses
SINO-THAI ENGINEERING: Faces delisting due to losses
SRIVARA REAL ESTATE: Faces delisting due to losses
TANAYONG: Faces delisting due to losses
-----------------------------------------------------------
The Thai real estate sector is having a tough time bailing
itself out of heavy debt as witnessed by a forecast that
four firms are poised for delisting because of their
recurring losses.

In the third quarter, the property sector posted a combined
loss of nearly 5 billion baht compared to a loss of 3
billion baht in the same quarter of last year. Terdsak
Taveeteratham, a senior analyst with Thaitanakit Securities
pointed out that in the fourth quarter, four prominent
property firms will post continuous losses and will be
close to being delisted from the market. Those include
Tanayong, Preecha Group, Srivara Real Estate and B. Grimm
Engineering Systems, whose revenues are not adequate to
service debts.

"Tanayong's revenue is barely enough for its payroll let
alone paying 3 billion baht interest a year. We recommend
selling shares before the Stock Exchange of Thailand tags
the company with REHABCO status," said Terdsak.

Tanayong has a negative capital of over 6 billion baht with
accumulated losses of 17 billion baht. At the same time,
Srivara, now under REHABCO, has a negative capital of
nearly 2 billion baht and an accumulated loss of 3.6
billion baht.  Meanwhile, Sino-Thai Engineering has a
negative capital of 3 billion baht and an accumulated loss
of 4.4 billion baht.

Although Sino-Thai Engineering has restructured over 50
percent of its delinquent debts, the Securities and
Exchange Commission has downgraded it from REHABCO to
"potential for being delisted" status. Also, Teardsak said
Ch Karnchang and Navarat Patana both posted negative
capital and accumulated loss.

But since most of their losses come from forex they may be
eligible to use this fact to avoid being tagged with the
REHABCO status.  Terdsak pointed out that real estate
shares have reflected the reality of the sector, saying
that investors are at great risk if they buy them right
now. He suggested investors should buy only shares in
developers which build houses for sales and commercial
buildings for rent.

Developers of renting property will be the only group with
a promising future because of their strong revenue base.
MBK Property Developer (MBK-PD) shares yielded an average
of 13 percent dividend this year, he said.  Pritas Poonpol,
of Kim Eng Securities noted that Land and Houses shares are
currently about 30 percent below their proper level of 18
baht.  The shares closed at 12.5 baht Friday. (Business Day
18-Dec-2000)

UA WITHAYA EQUIPMENT: EGAT project delay could bankrupt
-------------------------------------------------------
Further delay in a crucial Industry Ministry approval will
affect an Electricity Generating Authority of Thailand
(Egat) Bt852-million high-voltage power-transmission line
project and cause the bankruptcy of a local subcontractor,
according to a representative of the threatened company.

Fifty employees of UA Withaya Equipment, the subcontractor
of Japanese firm Fujukura - which landed the Egat project -
protested at the Industry Ministry yesterday that the
company had already been waiting five months for approval
from the Thai Industrial Standards Institute (TISI). The
company needs TISI approval before it can begin fabrication
of imported steel, and thus start construction.

Sompol Bhirompakdee, galvanising section manager of UA
Withaya, said the company had applied to TISI for the
production licence in August. "Ours is the first part of
the project, and any delay will therefore affect the
overall project and all other subcontractors," he added.
"It is not only a question of Fujukura being fined by Egat
if the project cannot be completed on time, as UA Withaya
would have to go out of business and its 500 workers would
be unemployed, too."

Chupong Visetjindavat, adviser to Deputy Industry Minister
Wuthichai Sanguenwongchai, who has responsibility for TISI,
claimed he had only seen the application last month. (The
Nation 19-Dec-2000)


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