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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

            Thursday, January 4, 2001, Vol. 4, No. 3

                           Headlines


A U S T R A L I A

E*TRADE AUSTRALIA:  Expected 1st Quarter Loss Exceeds 1999 Result
SOLUTION 6:  Financial Review Release Delayed
TALK AUSTRALIA:  Fails to Pay Back Investors $500,000


C H I N A  &  H O N G  K O N G

KUNMING MACHINE: Sells Trade Receivables
SHENZHEN:  Borrows HK$10M from Tom.com


I N D O N E S I A

CHANDRA ASRI:  Founder Negotiates Debt Restructuring Plan
MERPATI: Revamped Airline Hopes to Achieve World-Class Status
PT BARITO PACIFIC:  Restructures US$356.7M Foreign Exchange Debt


J A P A N

CHOGIN KINKI:  Another Credit Union Fails for Ethnic Koreans


K O R E A

HYUNDAI ENGINEERING:  Eliminates 2,000 Jobs
HYUNDAI SECURITIES:  Unlisted Shares to Be Used as Collateral
SEOUL BANK:  Faces Future as a Holding Company


M A L A Y S I A

DAMANSARA REALTY: To Liquidate Five Subsidiaries
RAHMAN HYDRAULIC:  To Reduce Capital in Debt Restructuring Plan
RENONG:  Taraf Perdana Seeks Waiver to Buy Renong Shares


P H I L I P P I N E S

BW RESOURCES:  BW Resources Asks Court to Grant Travel Request


S I N G A P O R E

BRC ASIA:  Restructuring Plan Calls for Retrenching Workforce
CT ENVIRONMENTAL:  Liquidator Conducts Winding-up Process
TRI-M TECHNOLOGIES:  TRI-M Interim Loss Widens to $11.7M


T H A I L A N D

PREMIER ENTERPRISES:  Debt Restructuring Plan Hearing Set


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

E*TRADE AUSTRALIA:  Expected 1st Quarter Loss Exceeds 1999 Result
----------------------------------------------------------------
Online broker E*Trade Australia incurred losses in 2000 that were
15 percent higher than in 1999. E*Trade reduced its brokerage
fees in April 2000.

The company issued $18.14 million worth of shares to ANZ Banking
Group. The accounting practice of expensing the deemed value of
the shares will continue because it will not affect the company's
cash position, Fairfax News reported.

ANZ can increase its holdings in E*Trade to 40 percent with the
increase in the number of customers it introduces to the online
broker.


SOLUTION 6:  Financial Review Release Delayed
---------------------------------------------
Solution 6 will delay the release of its financial review for six
weeks, the Advertiser news reported. Arthur Anderson still
reviewing the yearly profit and balance sheet in the first half
of February, Solution 6 finance director John Greaves said.

The company posted a net loss of $79.48 million for the year to
June 2000 and estimates it will earn between $320 million and
$330 million for the year 2001, an Australian Securities &
Investments Commission report revealed.

Chief executives of its Australia, UK and US operations were
appointed as part of the changes for the troubled company, chief
executive Neil Gamble said.


TALK AUSTRALIA:  Fails to Pay Back Investors $500,000
-----------------------------------------------------
Talk Australia has failed to pay back investors $500,000, most of
whom are prominent media stars. The radio station has closed
after failing to reach millions of listeners, Australian News
reported.

Larry Emdur (believed to be owed $30,000), Lochie Daddo
($20,000), Channel 9's Brady Halls ($10,000) and Triple M's Brian
Carlton ($50,000), were at a loss on December 6 when the radio
station suddenly filed for bankruptcy. Station director Sally
Jacob assured investors that they are not running away but are
waiting for legal advice on how to proceed. The radio station was
founded by Paul Hodges.


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

KUNMING MACHINE: Sells Trade Receivables
----------------------------------------
Kunming Machine Tool Co. Ltd. will dispose trade receivables of
11.4 million yuan and 3.6 million yuan to its parent company,
Kunming Kun Ji Group Co., a Yunnan state-owned enterprise, in
return for cash, according to a Quamnet News report.

The receivables have a net book value. The inventories meanwhile
have a net book value of 3.07 million priced at a 17 percent
premium.

Kunming Ji Group Co. owns 41.8 percent of Kunming Machine Tool
Co. Ltd. as of December 29, 2000. Kunming Machine shares last
traded at 84 H.K. cents.


SHENZHEN:  Borrows HK$10M from Tom.com
--------------------------------------
Shenzhen Freenet will borrow HK$10 million from Tom.com for one
year at an interest rate of 6.95 per annum to be able to meet its
working capital requirements.

Tom.com will have the services of Beijing Super Channel to
maintain and provide content. Shares fell 2.4 percent to HK$2.05.

Sing Wang, Tom.com's CEO, owns 90 percent of Shenzhen Freenet
while Wang Lei Lei has a 9 percent stake, Quamnet News Service
reported.


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

CHANDRA ASRI:  Founder Negotiates Debt Restructuring Plan
---------------------------------------------------------
Timber tycoon Prajogo Pangestu has pledged 20 companies to the
Indonesian Bank Restructuring Agency (IBRA) as a condition for  
restructuring his debt. According to Financial Sector Policy
Committee (FSPC) secretary Syafruddin Tumenggung, the government
has demanded Prajogo provide additional assets as part of the
debt restructuring for petrochemical giant PT Chandra Asri
Petrochemical Center with IBRA.

The Jakarta Post reported two weeks ago that Chandra Asri owes
IBRA about Rp 3 trillion. The petrochemical giant also owes about
US$700 million to a consortium of foreign creditors led by
Japan's Marubeni Corp.

Under the debt-restructuring plan of Chandra Asri, the government
agreed to convert part of its loan into a 31 percent stake in the
company. Under the deal, Marubeni will end up with a 20 percent
stake in Chandra Asri, while company founder Prajogo will have a
49 percent stake.

The FSPC is also working to negotiate better terms on the
interest rate on debt Chandra Asri pays to foreign creditors.


MERPATI: Revamped Airline Hopes to Achieve World-Class Status
-------------------------------------------------------------
State-owned domestic air carrier Merpati Nusantara Airlines, has
pledged to revive itself after barely surviving a threat of
bankruptcy. Merpati president Wahyu Hidayat said in an interview
with the Jakarta Post two weeks ago that the company is starting
from scratch, with new management and a new attitude.

"Merpati was in a very bad condition, both from financial and
cultural aspects, when I was assigned to manage the company. Then
all of us at Merpati worked together, repositioning and
restructuring the company. Slowly we have seen results."

Last year Merpati posted a pretax profit of Rp 72 billion, up
from a net loss of Rp 600 billion in 1998 and Rp 400 billion in
1997. Wahyu said the profits resulted from an improvement in the
airline's operations, such as fleet reductions, and rescheduling
the airline's debts.

Wahyu plans to take the airline public when it is back on its
feet, either by private placement or through strategic partners.


PT BARITO PACIFIC:  Restructures US$356.7M Foreign Exchange Debt
----------------------------------------------------------------
PT Barito Pacific Timber will restructure foreign exchange debt
worth $356.7 million after creditors approved earlier a debt
restructuring of Rp400 billion in rupiah bonds.

PT Barito is the largest timber company in Indonesia producing
plywood, particle board, block board, wood working and laminated
particle board. The company is owned by business tycoon Prajogo
Pangestu. The first 10 months sales last year were valued at
US$150 million mostly in exports, Asia Pulse reports.

Creditors have agreed to reschedule the rupiah debt until 2007
because of the continuous decline in currency value.


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

CHOGIN KINKI:  Another Credit Union Fails for Ethnic Koreans
------------------------------------------------------------
Japan's third largest credit union declared insolvency on Friday,
according to Agence France-Presse. Chogin Kinki Shinyo Kumiai
sought a cash infusion from the Financial Reconstruction
Commission (FRC). FRC chairman Hakuo Yanagisawa told a news
conference that his commission declared Chogin Kinki insolvent
and would send in government-appointed administrators to the
credit union.

The credit union is eligible for an injection of public funds to
meet its obligations to refund depositors, FRC officials said.
Chogin Kinki has 640 billion yen (5.6 billion dollars) in
deposits.

On Monday, a total of 19 credit unions serving the pro-Seoul
ethnic Korean community in Japan agreed to merge following the
recent collapse of many of them. The merged unit will take over
the operations of the collapsed credit unions, including Kansai
Kogin and Tokyo Shogin, which were declared insolvent by the FRC
earlier this month.

The new bank, tentatively named Kanshin Bank, will seek public
funds to strengthen its capital base, they said.


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

HYUNDAI ENGINEERING:  Eliminates 2,000 Jobs
-------------------------------------------
Hyundai Engineering and Construction Co. will eliminate 2,000
jobs out of the total workforce of 7,200 together with 37 top
managerial posts.

The country's largest engineering company will separate an
engineering and steel structure unit, outsourcing the management
of its main office and its cafeteria, Asia Pulse reported.


HYUNDAI SECURITIES:  Unlisted Shares to Be Used as Collateral
-------------------------------------------------------------
The government will allow unlisted shares of Chung Mong-hun,
Hyundai Asan chairman, as collateral to increase Hyundai
Securities' capital, whose deficiency reached 1.2 trillion won at
the end of last year.

The unlisted stocks include shares in Autonet and Hyundai Express
valued at 1.7 trillion won as of December 31, 2000, during the
signing of Memorandum of Understanding (MOU) between Hyundai
Securities and the government, Hyundai Securities. But the
government is urging the management of Hyundai Securities to
bring in new investors during the process or jeopardize the
conversion of unlisted shares, Digital Chosun reports.

The Financial Supervisory Service (FSS) is seeking from the court
the approval for an accounting firm to do the valuation of
shares.


SEOUL BANK:  Faces Future as a Holding Company
----------------------------------------------
Seoul Bank together with several poorly performing life insurance
companies may be consolidated into a financial holding company if
it cannot attract foreign investors by the end of the first half
of next year.

Another possibility, the introduction of public funds after they
are nationalized, was opposed by Commerzbank, the largest
shareholder of Korea Exchange Bank (KEB). Commerzbank fears the
bank might not be able to survive on its own without government
assistance, Digital Chosun reports.


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

DAMANSARA REALTY: To Liquidate Five Subsidiaries
------------------------------------------------
The board of Damansara Realty has voted to liquidate five
inactive subsidiaries. Extel Company News reports the five
subsidiaries are are Kesang Resorts & Hotels Sdn Bhd, Chendering
Motel Sdn Bhd, Kesang Land Sdn Bhd, Kesang Associates Sdn Bhd and
Syarikat Timor Jaya Plantation Sdn Bhd.


RAHMAN HYDRAULIC:  To Reduce Capital in Debt Restructuring Plan
---------------------------------------------------------------
The debt restructuring program of Rahman Hydraulic Tin Bhd. calls
for the capital reduction, share swapping, settlement of debts,
listing transfer and acquisition of a white knight company, and
listing transfer with the conditional approval from Pengurusan
Danaharta Nasional Bhd.

Paid-up capital will be reduced by a 10-to-one ratio to RM9.72
million. New shares will be reconstituted into the white knight
company, Speed Operations, for RM376.57 million to be satisfied
by the issuance of RM187.57 million shares and RM189 million
nominal value of five-year irredeemable convertible preference
shares (ICPS) in the new company, The Edge Daily reports.

Speed Operations will acquire three parcels of property worth
RM94.3 million paid by the issuance of five year ICPS in the new
company.

As of September 30, 2000 Rahman Hydraulic had RM357,75 million in
debts.


RENONG:  Taraf Perdana Seeks Waiver to Buy Renong Shares
--------------------------------------------------------
Taraf Perdana Sdn Bhd is seeking a waiver for a mandatory general
offer for the remaining shares in Renong Bhd. that it does not
already control in the company. It is planning to buy the 500.96
million shares, or 21.56 percent, of Renong held by Time
Engineering Bhd for RM874.68 million cash, roughly RM1.75 per
share, the Edge Daily reports.

The purchase will increase Taraf Perdana's stake in Renong to
1.59 billion shares or 68.6 percent. The waiver requires Time
Engineering to sell its shares in Renong.


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

BW RESOURCES:  BW Resources Asks Court to Grant Travel Request
--------------------------------------------------------------  
A BW Resouces Corp. executive has asked the court's permission to
grant a travel request to leave for Macau, Hongkong and Jakarta
to "attend his businesses" abroad for a few days while his case
is still pending.

Ms. Agnes Maranan assured the court that her client, Mr. Dante
Tan, BW Resources president, will not flee. He has to visit his
partner, Mr. Stanley Ho, in Macau. The case is pending in the
Pasig Regional Trial Court branch 153 under judge Briccio Ygana,
Business World reports.

The Department of Justice (DOJ) opposes the request because of
the criminal nature of the case. The DOJ also fears the other
defendants, minority stockholder Jimmy Juan, Jr. and former BWRC
president Eduardo "Moonie" G. Lim, Jr., might follow with similar
requests.


=================
S I N G A P O R E
=================

BRC ASIA:  Restructuring Plan Calls for Retrenching Workforce
-------------------------------------------------------------
The restructuring plan of BRC Asia Ltd. calls for retrenching 10
percent of its workforce and cutting excess capacity in its
factory. Some executives will take a 4 to 5 percent cut in salary
while two directors will take a 6 to 8 percent pay cut, the Star
OnLine reports.

A company official said the mesh industry in Singapore has
reached an overcapacity stage, forcing management to streamline
operations.


CT ENVIRONMENTAL:  Liquidator Conducts Winding-up Process
---------------------------------------------------------
CT Environment (CTE) will let the appointed provisional
liquidator Yin Kum Choy, of KC Yin & Co, to conduct a creditors'
voluntary winding-up process because it cannot continue to do
business in the face of looming liabilities.

A loss of $500,000 will be incurred during the liquidation
process. The company is 60 percent owned by Rotary Engineering,
whose business is tank cleaning, oil recovery, oil sludge
treatment and remediation. Rotary investment $480,000 as equity
in CTE, Business Times reports.


TRI-M TECHNOLOGIES:  TRI-M Interim Loss Widens to $11.7M
--------------------------------------------------------
TRI-M Technologies has reported a wider $11.7 million net loss
for the half-year to Sept. 30, up from $2.4 million, according to
a Business Times report.

Tri-M said it was affected by an investment in Newer Technology
Inc., which continued to register losses without any early
prospect of an upturn. Tri-M said it has decided to disengage
from NTI and full provision has been made for its exposure,
comprising $11.8 million for trade receivables and inventory and
$708,000 for a revolving loan as exceptional items.


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

PREMIER ENTERPRISES:  Debt Restructuring Plan Hearing Set
---------------------------------------------------------
The Central Bankruptcy Court will hear comments on Premier
Enterprises's restructuring plan. Creditors hold 61 percent of
Premier's debt as of January 11. The major creditors are the
Industrial Finance Corporation of Thailand (IFCT), Asset
Management Corporation (AMC) and Siam Commercial Bank.

Vichien Pongsathorn, president of Premier Enterprise, told the
Bangkok Post that the company's debts are classified into three
groups based on the restructuring plans.

Premier distributes a wide range of goods from automobiles to
appliances and construction materials, and has other interests in
food, property, finance and communication businesses.



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

Troubled Company Reporter -- Asia Pacific is a daily
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DC USA. Lexy Mueller, Managing Editor, James Philip P.
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Copyright 2001.  All rights reserved.  ISSN: 1520-9482.

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