/raid1/www/Hosts/bankrupt/TCRAP_Public/010110.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

         Wednesday, January 10, 2001, Vol. 4, No. 7

                          Headlines


A U S T R A L I A

COLES MYER:  Reports $260M Abnormal Loss
CREST MAGNESIUM:  Joins Multiplex for Revival
IAMA:  Wesfarmers Offers Cash Exit Option to Shareholders
NEWS DIGITAL:  Closes Doors, Sacks 200 Employees


C H I N A  &  H O N G  K O N G

PETROCHINA: Layoffs Cost 3.15B Yuan
VTECH HOLDINGS:  Fires Workers, Faces Suit

I N D O N E S I A

PERTAMINA:  Cleanup Drive Affects 6,000 Employees
PT INDOCEMENT:  German Firm Pays Premium for Shares

J A P A N

BRIDGESTONE: Share Prices Dip Despite Lawsuit Settlement
NISSAN MOTOR:  Sells Assets to Pay Debts
SOWA BANK:  Shinsei Bank Submits Bid


K O R E A

HANVIT BANK:  Gov't Offers Shareholders Buy Back
SEOUL BANK:  Gov't Offers Shareholders Buy Back
PEACE BANK:  Gov't Offers Shareholders Buy Back
KYONGNAM BANK:  Gov't Offers Shareholders Buy Back
KWANGJU BANK:  Gov't Offers Shareholders Buy Back

CHEJU BANK:  Gov't Offers Shareholders Buy Back
HYUNDAI ENGINEERING:  Former Exec Back, Layoffs Loom
KOREA ONLINE:  Sells Subsidiary to Abraxas
SHINDONGAH INSURANCE:  SK Group to Acquire Non-Life Insurer
SSANGYONG COMMUNICATIONS:  New Conditions Delay Sales


M A L A Y S I A

FABER GROUP:  Sells Hotel to Pay Debt
INNOVEST:  Aborts Debt Conversion


P H I L I P P I N E S

PETRON:  Blames Negative Results on Lower Sales
PHILIPPINE NATIONAL BANK:  PDIC to Absorb Bad Debts
UNIWIDE:  Casino Junks Investment Plan
URBAN INVESTMENTS:  SEC Grants Debt Reprieve


T H A I L A N D

POWER-P:  Appoints Financial Advisor


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

COLES MYER:  Reports $260M Abnormal Loss
----------------------------------------
Coles Myer reported an abnormal loss of $260 million before tax
despite posting a $300.7 million net profit for the 12 months to
July 30, 2000, down 25.8 percent from $405.3 million the previous
year, Aap reported on Tuesday.

Observers downgraded their net profit forecasts for the group for
the current year from $512 million to $489 million -- 1.9 percent
above the $483.7 million pre-abnormal profit result posted for
the 12 months to July 20, 2000.

In November, Coles reported a 5.2 percent lift in first quarter
sales to $5.6 billion, with chief executive Dennis Eck saying the
second quarter would be the key to the group's full-year
performance.

Recently the shares dived 5 percent after the announcement that
its Myer Grace department store sales also slowed down during the
first 22 weeks.

Leading newspapers reported earnings for the Myer Grace chain had
plunged almost 17 percent, or $100 million, compared to the same
period in the previous year.


CREST MAGNESIUM:  Joins Multiplex for Revival
---------------------------------------------
Crest Magnesium in Tasmania is offering its 20 percent stake in
the company to Multiplex Constructions through a debt-to-equity
swap in an effort to revive the company, according to the Tuesday
edition of ABC News OnLine.

Peter Anderton (the new Crest Magnesium managing director) is a
former managing director of Comet Resources, a company developing
a billion dollar nickel project at Revensthorpe in WA.  He will
try to revive the company.


IAMA:  Wesfarmers Offers Cash Exit Option to Shareholders
---------------------------------------------------------
Wesfarmers Ltd. will offer a cash exit option to IAMA Ltd.
shareholders at $1.66 per share giving a market share of around
35 percent and $1.5 billion in annual rural merchandising sales,
AAP reported on Tuesday.

Michael Chaney, Wesfarmers managing director, said this would
still be subject for approval during the next IAMA's shareholders
meeting on February 9.

IAMA had urged shareholders to approve the merger by sending
explanatory statements reiterating the directors' endorsement.

Under the merger proposal announced in November, IAMA would
acquire Wesfarmers Dalgety in return for the issuance of 116
million ordinary shares in IAMA, which would result in Wesfarmers
holding around 60 percent of IAMA from its current stake of 13.04
percent. Settlement of the deal would value IAMA at just over
$160 million.

Two other shareholders signified intention to join the merger
plans. Nufarm Ltd., a chemical producer, offered to buy $1.30 per
share to help in the restructuring of IAMA.

Nufarm Ltd. subsequently applied to the Australian Securities and
Investments Commission to withdraw the bid but the request was
rejected and the offer ran its course, ending on January 6.

The second company Futuris Corp Ltd. holds 19.7 percent of IAMA.
It launched legal proceedings in August in the Supreme Court of
South Australia in part to stop a Wesfarmers and IAMA merger. But
Wesfarmers announced in early December it had agreed to terms
with Futuris to end the legal action, one of the November merger
conditions.

Wesfarmers Dalgety managing director Richard Goyder also said
they were still in talks with the Australian Competition and
Consumer Commission about the merger but this would be resolved
before the February meeting.


NEWS DIGITAL:  Closes Doors, Sacks 200 Employees
------------------------------------------------
News Digital Media, a subsidiary of News Corp., will cease
operations and dismiss 200 employees to save badly needed cash.

The remaining employees from a total of 450 jobs will be
transferred back to the networks of the News Corporation. The
other companies are Fox Broadcasting Company, Fox Sports
Television Group, and Fox News Channel.

Andrew Butcher, a company spokesman, said the move would save the
company "tens of millions" of dollars, but he declined to be more
specific, Fairfax I.T. reported on Monday.

News Digital Media was formed in 1997 with the ambitious goal of
providing fresh editorial content for the online components of
News Corps' broadcast outlets, FoxNews.com, FoxSports.com and
Fox.com.

Until 1999 the division was headed by James Murdoch, the 27-year-
old son of News Corp. chairman Rupert Murdoch. James, who now
heads the company's Asian satellite operations, is also a board
member along with his 29-year-old brother Lachlan.

The elder Murdoch has recently expressed pessimism about Internet
business models that rely on getting revenues from online
advertising.


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

PETROCHINA: Layoffs Cost 3.15B Yuan
----------------------------------
PetroChina Co., China's largest oil company, spent 3.15 billion
yuan to make 38,000 job cuts last year but the move will be
saving 700 million yuan a year.

The restructuring plan was to eliminate 50,000 workers over five
years, Bloomberg reported on Monday.

Shou Xuancheng, secretary of PetroChina Co. said, "In line with
its ongoing restructuring arrangement in 2000 and its cash flow
position, (PetroChina) has accelerated its employee reduction
program."

PetroChina's shares fell as much as 1.5 percent, or 2 HK cents,
to HK$1.31. It recently traded at HK$1.33.


VTECH HOLDINGS:  Fires Workers, Faces Suit
------------------------------------------
A group of 61 former employees of Vtech Holdings Ltd. filed a
labor complaint after being fired three months ago alleging the
company did not follow proper termination procedures.

Some 750 employees were fired in the last three months of 2000,
Bloomberg reported on Monday.

Vtech shares fell 5.6 percent to HK$5.85 after the report was
divulged.

Vtech, the world's biggest maker of cordless phones and
electronic educational toys, couldn't be reached immediately for
comment.


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

PERTAMINA:  Cleanup Drive Affects 6,000 Employees
-------------------------------------------------
Pertamina, a state-owned oil and gas enterprise, will eliminate
3-40 percent of `structural' positions in the next six months and
some 6,000 employees will either be pensioned off or moved to
affiliated companies. But people involved in disbursing resources
will be investigated, Detikworld reported on Friday.

On the issue of those occupying structural positions, Pertamina
Director Baihaki Hakim said structural personnel would be grouped
into teams to help in the restructuring and eventual
privitisation of the firm.

As early as December of last year the company had plans to trim
down its labor force from 26,000 to an "ideal" number of 18,000
by introducing a retrenchment program over the next five years,
Hakim said.

Hakim, who has also admitted that the President may choose to
replace him during the restructuring, said the company was
preparing data on personnel suspected of criminal activities.


PT INDOCEMENT:  German Firm Pays Premium for Shares
---------------------------------------------------
The Financial Sector Policy Committee wants Heidelberger Zement
AG to pay a premium to the current market price at 1,900 rupiah
for PT Indocement Tunggal Prakarsa.

Safruddin Tumenggung, the committee's secretary, said the
government has 45 percent in PT Indocement, the country's largest
cement maker, worth $400 million, Asian Wall Street Journal
reported on Monday.

The government hopes to finalize the sale with Heidelberger
during the first quarter of this year.

PT Indocement was formerly under the Salim Group. Years of over-
expansion resulted in accumulated debt of $1.1 billion. In 1997,
the company defaulted on the loans forcing it to turn over a 20
percent stake to the Indonesian Bank Restructuring Agency (IBRA).

Today even though the Salim Group still holds a substantial 40
percent stake in PT Indocement, it is pledged as collateral for
$200 million in exchangeable bonds held by institutional
investors and will fall due on February, sources privy to the
deal said.

Salim still has 53 trillion rupiah debt to IBRA for the emergency
loans the government made to Bank Central Asia during the
financial crisis.

Heidelberger will redeem the bonds in the first quarter, and
acquire the underlying stake.


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

BRIDGESTONE: Share Prices Dip Despite Lawsuit Settlement
-------------------------------------------------------
Share prices of Bridgestone Corp. fell despite the announcement
of a settlement on Monday of the personal injury lawsuit in
Texas, with shares falling by 61 yen or 5.72 percent at 1,005
after falling low as 997 yen.

One trader speculated that investors did not put much weight on
the announcement since a settlement cost was not mentioned.

Bridgestone shares have lost one-half of their value since August
of last year an investigation began in the United States for
deaths and injuries potentially linked to the failure of
Bridgestone tires, Reuters reported on Tuesday.


NISSAN MOTOR:  Sells Assets to Pay Debts
----------------------------------------
Nissan Motor Co. Ltd. needs to sell non-core assets at fire-sale
prices to meet the goal of $6 billion debt in 2002, a reduction
from the $10 billion the company currently has.

Carlos Ghosn, speaking to reporters at a dinner during the North
American International Auto Show in Detroit, said Nissan's debt
was significantly cut since he joined the company in July 1999,
Reuters reported on Monday.

"Do we have more to sell? Sure. This sale of assets that we don't
consider as really fundamental for our future is going to
continue. We are negotiating from time to time. We are going to
say no when we consider that the conditions are not appropriate.
It's not a fire sale. I'm not intending to do this in one year.
We're going to take our time," Ghosn added.

Even though the company is under pressure to dispose of assets,
it will not do so at the expense of the planned new truck
assembly plant in Mississippi, he said.

The other two goals Nissan's executive committee has set include
making a profit in fiscal 2000 and achieving an operational
margin of 4.5 percent in 2002, which are both likely, Ghosn said.


SOWA BANK:  Shinsei Bank Submits Bid
------------------------------------
Shinsei Bank will join others in a bid to buy failed Sowa Bank of
Tokyo in a second tender organized by Deposit Insurance Corp.

Sowa Bank will face liquidation if it cannot find a buyer by June
of this year. Other interested financial institutions are U.S.
investment bank Morgan Stanley and a fresh bid by Ross's Asia
Recovery Fund, according to the Tuesday edition of Business Day.

Ross's Asian Recovery Fund nearly reached an agreement with Sowa,
beating Shinsei Bank. The agreement did not materialize, however,
because of the difference in the amount of public money to be
injected.

Along with Shinsei, major human resources consulting company
Pasona will likely become a key player in the tender.


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

HANVIT BANK:  Gov't Offers Shareholders Buy Back
------------------------------------------------
The government will offer minority shareholders the right to buy
back their shares in Hanvit, Seoul, Peace, Kyongnam, Kwangju and
Cheju Banks at par value, or 5,000 won, after the government
determines the number of shares a shareholder can buy and who are
eligible to buy at what price.

The Financial Supervisory Commission (FSC) has agreed with a pre-
emptive rights offer at par value, according to a source from the
ministry of finance.

"Setting the price at below par value would go beyond the norm
and would involve overly complex legal procedures in order to be
approved. Once the banks write off all their bad assets and are
re-capitalized, shareholders will still be able to make a profit
when buying the new shares at par value," the official said.

But pre-emptive right conditions vary among banks because bad
assets defer. The most likely preference will be the former share
prices, another official said.

In this case Hanvit and Cheju will have greater pre-emptive
rights than shareholders of Seoul and Peace banks because they
are priced relatively high compared to other banks. This means
that the minority shareholders incurred losses when their shares
were cancelled, the Korea Herald reported on Monday.

Losses steaming from complete capital reduction on December 18 of
last year stood at eight trillion won.


SEOUL BANK:  Gov't Offers Shareholders Buy Back
-----------------------------------------------
The government will offer minority shareholders the right to buy
back their shares in Hanvit, Seoul, Peace, Kyongnam, Kwangju and
Cheju Banks at par value, or 5,000 won, after the government
determines the number of shares a shareholder can buy and who are
eligible to buy at what price.

The Financial Supervisory Commission (FSC) has agreed with a pre-
emptive rights offer at par value, according to a source from the
ministry of finance.

"Setting the price at below par value would go beyond the norm
and would involve overly complex legal procedures in order to be
approved. Once the banks write off all their bad assets and are
re-capitalized, shareholders will still be able to make a profit
when buying the new shares at par value," the official said.

But pre-emptive right conditions vary among banks because bad
assets defer. The most likely preference will be the former share
prices, another official said.

In this case Hanvit and Cheju will have greater pre-emptive
rights than shareholders of Seoul and Peace banks because they
are priced relatively high compared to other banks. This means
that the minority shareholders incurred losses when their shares
were cancelled, the Korea Herald reported on Monday.

Losses steaming from complete capital reduction on December 18 of
last year stood at eight trillion won.

PEACE BANK:  Gov't Offers Shareholders Buy Back
-----------------------------------------------
The government will offer minority shareholders the right to buy
back their shares in Hanvit, Seoul, Peace, Kyongnam, Kwangju and
Cheju Banks at par value, or 5,000 won, after the government
determines the number of shares a shareholder can buy and who are
eligible to buy at what price.

The Financial Supervisory Commission (FSC) has agreed with a pre-
emptive rights offer at par value, according to a source from the
ministry of finance.

"Setting the price at below par value would go beyond the norm
and would involve overly complex legal procedures in order to be
approved. Once the banks write off all their bad assets and are
re-capitalized, shareholders will still be able to make a profit
when buying the new shares at par value," the official said.

But pre-emptive right conditions vary among banks because bad
assets defer. The most likely preference will be the former share
prices, another official said.

In this case Hanvit and Cheju will have greater pre-emptive
rights than shareholders of Seoul and Peace banks because they
are priced relatively high compared to other banks. This means
that the minority shareholders incurred losses when their shares
were cancelled, the Korea Herald reported on Monday.

Losses steaming from complete capital reduction on December 18 of
last year stood at eight trillion won.


KYONGNAM BANK:  Gov't Offers Shareholders Buy Back
--------------------------------------------------
The government will offer minority shareholders the right to buy
back their shares in Hanvit, Seoul, Peace, Kyongnam, Kwangju and
Cheju Banks at par value, or 5,000 won, after the government
determines the number of shares a shareholder can buy and who are
eligible to buy at what price.

The Financial Supervisory Commission (FSC) has agreed with a pre-
emptive rights offer at par value, according to a source from the
ministry of finance.

"Setting the price at below par value would go beyond the norm
and would involve overly complex legal procedures in order to be
approved. Once the banks write off all their bad assets and are
re-capitalized, shareholders will still be able to make a profit
when buying the new shares at par value," the official said.

But pre-emptive right conditions vary among banks because bad
assets defer. The most likely preference will be the former share
prices, another official said.

In this case Hanvit and Cheju will have greater pre-emptive
rights than shareholders of Seoul and Peace banks because they
are priced relatively high compared to other banks. This means
that the minority shareholders incurred losses when their shares
were cancelled, the Korea Herald reported on Monday.

Losses steaming from complete capital reduction on December 18 of
last year stood at eight trillion won.


KWANGJU BANK:  Gov't Offers Shareholders Buy Back
-------------------------------------------------
The government will offer minority shareholders the right to buy
back their shares in Hanvit, Seoul, Peace, Kyongnam, Kwangju and
Cheju Banks at par value, or 5,000 won, after the government
determines the number of shares a shareholder can buy and who are
eligible to buy at what price.

The Financial Supervisory Commission (FSC) has agreed with a pre-
emptive rights offer at par value, according to a source from the
ministry of finance.

"Setting the price at below par value would go beyond the norm
and would involve overly complex legal procedures in order to be
approved. Once the banks write off all their bad assets and are
re-capitalized, shareholders will still be able to make a profit
when buying the new shares at par value," the official said.

But pre-emptive right conditions vary among banks because bad
assets defer. The most likely preference will be the former share
prices, another official said.

In this case Hanvit and Cheju will have greater pre-emptive
rights than shareholders of Seoul and Peace banks because they
are priced relatively high compared to other banks. This means
that the minority shareholders incurred losses when their shares
were cancelled, the Korea Herald reported on Monday.

Losses steaming from complete capital reduction on December 18 of
last year stood at eight trillion won.


CHEJU BANK:  Gov't Offers Shareholders Buy Back
-----------------------------------------------
The government will offer minority shareholders the right to buy
back their shares in Hanvit, Seoul, Peace, Kyongnam, Kwangju and
Cheju Banks at par value, or 5,000 won, after the government
determines the number of shares a shareholder can buy and who are
eligible to buy at what price.

The Financial Supervisory Commission (FSC) has agreed with a pre-
emptive rights offer at par value, according to a source from the
ministry of finance.

"Setting the price at below par value would go beyond the norm
and would involve overly complex legal procedures in order to be
approved. Once the banks write off all their bad assets and are
re-capitalized, shareholders will still be able to make a profit
when buying the new shares at par value," the official said.

But pre-emptive right conditions vary among banks because bad
assets defer. The most likely preference will be the former share
prices, another official said.

In this case Hanvit and Cheju will have greater pre-emptive
rights than shareholders of Seoul and Peace banks because they
are priced relatively high compared to other banks. This means
that the minority shareholders incurred losses when their shares
were cancelled, the Korea Herald reported on Monday.

Losses steaming from complete capital reduction on December 18 of
last year stood at eight trillion won.


HYUNDAI ENGINEERING:  Former Exec Back, Layoffs Loom
----------------------------------------------------  
Hyundai Engineering & Construction Co. employees fear layoff
plans are eminent with the return of former Hyundai Group
chairman Chung Mong-hun on December 20.

Chung is currently reviewing HEC's self-rescue and restructuring
plan including labor cuts and Hyundai Asan's management problems.  
Hyundai Asan is overseeing the group's North Korean projects and   
also experience losses, the Korea Herald reported on Monday.

Last year during the height of the liquidity crisis, HEC laid off
64 executives and no massive labor reduction was introduced.

Some 2,000 employees and executives will be part of the massive
layoff plan starting January 2. The 1,700 employees will follow
the spin-off divisions like engineering, steel structure,
building management and operation of in-house cafeterias. The
remaining 300 employees will simply be fired. On December 30, 37
executives were dismissed.

When the result of the American management consulting firm survey
is completed next month, Chung will conduct an overall review on
the structure and personnel.

"It is none other than the management who is responsible for the
company's liquidity crisis. Why is it only employees should be
sacrificed?" one employee complained.


KOREA ONLINE:  Sells Subsidiary to Abraxas
------------------------------------------
iRegent Group will sell its 46.4 percent holding in its
subsidiary, KoreaOnline, to Abraxas Capital leaving it with no
business interest in Korea, according to the Monday edition of
Hongkong iMail.

Abraxas Capital does not have any assets or liabilities yet and
has not started to do business.

iRegent established KoreaOnline in 1998 to provide various
financial services and has invested about US$360 million (HK$2.8
billion) in South Korea through the company.


SHINDONGAH INSURANCE:  SK Group to Acquire Non-Life Insurer
-----------------------------------------------------------
The SK Group and possibly in consortium with either France's AXA
and Germany's Allianz will takeover Shindongah Insurance, a
leading player in the non-life insurance market, a source said.

The government approved the plan since the insurance firm was
affected by the collapse of Korea Life. SK, the No. 4 chaebol,
must takeover another weak non-life insurer before finalizing the
acquisition. The top five chaebols are required to take over
another weak non-life insurance firm if they want to acquire a
weak non-life insurance firm, the Korea Herald reported on
Monday.


SSANGYONG COMMUNICATIONS:  New Conditions Delay Sales
-----------------------------------------------------
Newbridge Capital will have to tackle unfavorable conditions
before they push through their bid of around 300 billion to 400
billion won for South Korea's Ssangyong Cement and a 67.4 percent
stake in Ssangyong Information & Communications, the South China
Morning Post reported on Monday.

Newbridge Capital and Carlyle Group both bid for the shares. Even
though Newbridge improved its bid, the action has been delayed
because of unfavorable conditions.

"We need more time to appraise [their bids], so we cannot fix the
date of signing [the deal]," said Lee Sang-cheon, a spokesman for
Ssangyong Cement.


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

FABER GROUP:  Sells Hotel to Pay Debt
-------------------------------------
Faber Group still plans to sell the Sheraton Imperial, a five-
star boutique hotel, at Jalan Sultan Ismail, together with other
hotels to pay its huge debts, which stand at RM 1.7 billion (of
which RM978mil are term loans and RM701.6mil are creditors) as of
June 30, 2000.

The 398-room Sheraton Imperial's net book value stood at RM322.5
million considered one of the best in the country because of its
prime location in the heart of Kuala Lumpur.

The Monday edition of the Star On Line reports Faber is hoping
that with the improved economy, property values would pick up and
its properties could fetch a higher price.

Last year, the pre-tax loss reduced to RM114.9 million as
compared to RM119.9 million in the previous year. Turnover rose
to RM469.8 million last year from RM438.9 million the previous
year, an increase of RM30.9 million.

The group's hotel division had resorted to borrowing worth RM117
million to finance construction and upgrading of properties for
the fiscal year 2000.

The debt restructuring exercise involved a 50 percent capital
reduction, issuance of RM232mil irredeemable convertible loan
stocks (Iculs) to unsecured bank creditors and non-bank creditors
on Oct 31, 2000, and the issuance of RM1.562bil redeemable
convertible secured bonds (RCBs) to secured bank creditors on
Nov. 3, 2000.


INNOVEST:  Aborts Debt Conversion
---------------------------------
Innovest Bhd. will abort the planned three-into-one capital
reduction rights issue of 27.65 million shares, restricted issue
of 70 million shares and debt conversion exercise and employee
share option scheme.

The Securities Commission rejected the proposal on December 8.

Commerce International Merchant Bankers Bhd made this
announcement to the Kuala Lumpur Stock Exchange, the Edge
reported on Friday.


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

PETRON:  Blames Negative Results on Lower Sales
-----------------------------------------------
Petron Corporation recorded a net loss last year because of lower
sales volume. One of its biggest clients, the National Power
Corporation, shifted to use more coal-fired and geothermal power
plants affecting the oil firm's sales volume, ABS/CBN News
Channel reported on Friday.

Petron vice president for corporate planning Ziad Labban said,
"the peso has significantly depreciated, averaging 40.62 pesos to
the dollar in December 1999...and about P50 to the dollar (in
December 2000). Our benchmark Dubai crude also increased,
reaching a high average of $30.25 per barrel in October 2000 from
as low as $10 per barrel in February 1999."

During the first nine-months of the year 2000, Petron said it
incurred a net loss of P1.3 billion.


PHILIPPINE NATIONAL BANK:  PDIC to Absorb Bad Debts
---------------------------------------------------
Philippine National Bank will convert P9 billion worth of
government-related bad loans into payment for the P10 billion
emergency-loan from the Philippine Deposit Insurance Corp. For
its part, the Bangko Sentral ng Pilipinas will convert a portion
of the short-term liquidity assistance into a long-term
rehabilitation package in payment for its 15 billion emergency
loan.

The BSP and PDIC extended a P25 billion emergency loan in October
of last year to PNB.

Finance Secretary Jose T. Pardo said it is fair that PNB should
be paid if indeed the government has debts in the banks,
according to the Monday edition of the Philippine Daily Inquirer.

During the term of former President Corazon Aquino, the
government was indebted by P3 billion. Some loans dated as far
back during the Marcos regime specifically the Nasutra trader.

Pardo said, "my instructions to PDIC is to go over and review if
these are indeed government advances. If the government really
owed PNB, we have to make good on that because we have to help
PNB return to viability."

PNB's rehab plan would also include a reorganization of
management, reduction of non-performing loans, sale of foreclosed
assets, tightening of credit policies and rationalization of
operations.


UNIWIDE:  Casino Junks Investment Plan
--------------------------------------
French retailing giant Casino Guichard-Perrachon SA will not
continue its investment plan for bankrupt Uniwide Group mainly
because of the worsening political situation in the country,
Business World reported on Friday.

Involved will be 89.2 percent of Uniwide for almost P4 billion,
which Casino had planned buy as early as February of last year.

A government official said the documents are already in place and
the money was supposed to come January 31 but because of the
political issue, Casino had second thoughts.

Uniwide interim receivership committee chairman Monico V. Jacob
said that because of the cancellation, Uniwide is negotiating
with seven to eight other local and foreign investors. One of the
interested investors is Mariano "Mike" Velarde, a friend of
President Joseph Estrada. Velarde is interested in acquiring 53
percent of Uniwide for P900 million.

Uniwide operations will still continue while the receiver
committee is busy looking for new investors. In the meantime,
analysts fear a new round of loan defaults and debt restructuring
will commence if Uniwide fails again to amortize its loans.


URBAN INVESTMENTS:  SEC Grants Debt Reprieve
-------------------------------------------------
The Securities and Exchange Commission (SEC) gave Urban
Investments Inc. (UII) a 60-day debt moratorium to allow it more
time to evaluate Urban's rehabilitation plans, virtually
shielding the company from creditors' claims until March 8. Aside
from the SEC, the Monetary Board (MB) is still in the process of
studying UII's viability.

The rehabilitation plan calls for the bank of Commerce to absorb
all of UII's debts provided the creditors and stockholders also
approve the plan. To date only the stockholders have approved the
plan, the Manila Times reported on Monday. UII needs the approval
of both the SEC and MB.

Under the amended rehabilitation plan submitted to the SEC, Bank
of Commerce, which has taken over the operations of Urban Bank,
intends to seek a P1.5-billion new loan from the Philippine
Deposit Insurance Corp. to service the withdrawals of its
clients.


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

POWER-P:  Appoints Financial Advisor
------------------------------------
Power-P Public Co. Ltd. has appointed Seamico Securities Public
Co., Ltd. as financial advisor to speed up the company's debt
restructuring process and aid the search for new joint-venture
partners.

Mr. Veerachai Uahvilaijit, Director and Managing Director of
Power-P, in his letter to the Stock Exchange of Thailand dated
March 29 last year said that Seamico was introduced to Seamico
during their meetings with creditors.

Uahvilaijit said they expect a final agreement will be drafted by
June 30 of this year.     



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
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
DC USA. Lexy Mueller, Managing Editor, James Philip P.
Jover and Maria Vyrna Nineza, Editors.

Copyright 2001.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale
or publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
prohibited without prior written permission of the
publishers.  Information contained herein is obtained from
sources believed to be reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6
months delivered via e-mail. Additional e-mail
subscriptions for members of the same firm for the term of
the initial subscription or balance thereof are $25 each.
For subscription information, contact Christopher Beard at
301/951-6400.

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