TCRAP_Public/010116.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

                 Tuesday, January 16, 2001, Vol. 4, No. 12

                               Headlines

A U S T R A L I A

SATELLITE:  Plans to Raise $A50M


C H I N A  &  H O N G  K O N G

SHINDONGBANG:  Sale Expected Next Month


I N D O N E S I A

PT PANCA OVERSEAS FINANCE: IFC May Lose Bankruptcy Petition


J A P A N

MATSUSHITA ELECTRIC:  Streamlines Operations


K O R E A

REGENT MERCHANT:  Bank Waits for Results of Due Diligence


M A L A Y S I A

IDRIS HYDRAULIC:  Datuk's Holdings Reduced
MAN YAU:  Applies Reverse Takeover


P H I L I P P I N E S

BAYANTEL:  Negotiates Creditors on Debts
MSF TIRE & RUBBER:  Shuts Down Operations
PHIL. NATIONAL BANK:  Government Owes PNB 2 Billion
UNIWIDE:  Attracts Two Foreign Groups


S I N G A P O R E

MICASA DELEOPMENT:  Petitions Court to Stop Creditor


T H A I L A N D

BANG CHANG:  Creditors to Vote January 25 on Debt Plan
THAI PETROCHEMICAL:  ABN Amro Casts Doubts on Reorganization Plan


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

SATELLITE:  Plans to Raise $A50M
--------------------------------
Satellite Group intends to raise $A50 million in capital by
combining several of its assets and those of two business
associates to help make a turnaround of the company this year.

Ian Widdup and Jim Byrnes, the two business associates, bought
$A200,000 shares in a bid to make the property management and
development group profitable again, according to the Thursday
issue of the Australian Financial Review.

Under the restructuring plan, some $350 million worth of new
assets will be transferred with a capitalization of about $A100
million.


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

SHINDONGBANG:  Sale Expected Next Month
---------------------------------------
Chase Manhattan Bank, lead creditor bank, announced the sale of
Shindongbang will be done at the end of the month after the due
diligence check.

Interested buyers include Cargill, a major U.S. crop dealer, Lotte
Samkang, Cheil Jedang and Unilever, Asia Pulse reported on Friday.

Chase Bank will allow on the spot visitation by interested
parties. Interested buyers are demanding that Shindongbang be
broken up so that its its animal feed, edible oil and glucose
divisions can be sold individually.

Shindong management and its creditors will not agree to such a
sale.


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

PT PANCA OVERSEAS FINANCE: IFC May Lose Bankruptcy Petition
-----------------------------------------------------------
The International Finance Corporation (IFC), a subsidiary of the
World Bank, may lose its bankruptcy case against PT Panca Overseas
Finance (POF) because it believes fictitious creditors plan to
attend the scheduled meeting next week.

IFC legal representative Luhut M.P. Pangaribuan said if the
Jakarta Commercial Court insists on proceeding with a vote
by creditors next week they will stand to lose the payment
of US$13 million in matured debts, the Jakarta Post reported
on Friday.

Aside from the IFC, some 17 other foreign creditors with $67.24
million maturing debt supported the petition filed last September.

For its part, POF submitted to the court a list of 14 new
creditors laying claims to over Rp1.6 trillion (about US$168.42
million) in debts.

Under the 1998 Bankruptcy Law, a company survives a bankruptcy
petition if the majority of creditors -- representing at least
two-thirds in value of the debtor's outstanding debts -- vote for
accepting the company's debt restructuring proposal.

If POF fails to have the majority vote, it will automatically be
declared bankrupt.


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

MATSUSHITA ELECTRIC:  Streamlines Operations
--------------------------------------------
Matsushita Electric Industrial Co. will reorganize operations as
part of a three-year plan to increase profitability and
manufacturing capacity. The company plans to eliminate two-thirds
of its divisions and reduce staff from 1,300 to 500 during the
next three years, Asia Pulse reported on Thursday. Manufacturing
operations will move to the company's headquarters.

The four regional headquarters will be responsible for all aspects
of business, including sales and production. The regional
headquarters are in Singapore, China, the U.S. and the U.K.

Some 13,000 employees will be transferred from sales to other
divisions like electronic parts and software-related businesses
costing the company 60 billion yen. The brands National and
Panasonic will be affected by the realignment.


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

REGENT MERCHANT:  Bank Waits for Results of Due Diligence
---------------------------------------------------------
The Financial Supervisory Service (FSS) is waiting for the results
of a due diligence audit on Regent Merchant Bank before it
declares the bank insolvent, according to the Thursday issue of
the Korea Herald.

The FSS will allow Regent Merchant to continue operations if the
audit shows assets exceed liabilities and capital has increased.

In case it is declared nonviable, the bank may be merged with Tong
Yang Merchant Bank or sold to a third party by a `purchase
assumption method.'

The FSS requires a capital adequacy ratio of at least 8 percent
for the bank to be considered viable, an FSS official said.

Regent Merchant ran into a liquidity crisis in the wake of an
illegal loan scandal to a venture entrepreneur late last month.
The merchant bank was declared bankrupt Dec. 21 after failing to
repay a debt of 12.3 billion won for two consecutive days.


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

IDRIS HYDRAULIC:  Datuk's Holdings Reduced
------------------------------------------
Businessman Datuk Anuar Senawi's interest in Idris Hydraulic Bhd.
will be reduced by one-third to 51.5 percent but the number of
shares he will eventually receive will be doubled, according to
the Friday issue of the Business Times.

Idris' proposed debt-restructuring plan would increase the paid-up
capital of Newco (in place of Idris) from 363.02 million shares to
582.34 million shares under a scheme called irredeemable
convertible unsecured loan stocks (ICULS-B). The company proposes
to give creditors unconvertible zero-coupon loan stocks instead of
convertible debt securities. Idris will transfer ownership of
Talasco Insurance, a subsidiary, to Newco for RM130.9 million.

Stockholder TA Enterprise Bhd has nearly 14 percent of the Newco;
Transwater Corp Bhd., 3 percent; and Danaharta Managers (L) Ltd.,
2.24 percent.

TA First Credit Sdn Bhd gave Idris a credit facility with Misma
Idris building as collateral.

Transwater, another creditor, claims Idris has not yet paid for a
19 percent stake in Prime Utilities Bhd. and has a case pending
before the Court of Appeals.


MAN YAU:  Applies Reverse Takeover
----------------------------------
Man Yau Holdings Bhd. (MYHB) has proposed a debt-restructuring
scheme that calls for a reverse takeover by acquiring companies,
making private placements and undertaking an employee share option
scheme (ESOS), according to Friday's edition of Asia Pulse.

The company proposes to waive part of its total debt (RM19.995
million of RM62.872 million) and settle on the remaining debt
(RM42.878 million) with cash. Part of cost would be raised by the
proposed private placement and selling off property.

The promoters would also give unsecured MYHB creditors 16.8
million shares in irredeemable convertible cumulative preference
shares (ICPS) at an RM1 nominal value for every RM2 of debt owed
to them.

In 1999, the group posted a loss of RM17.8 million while in 1998
it lost RM113.2 million. In the first nine months of 2000 MYHB
posted a tax loss of RM4.9 million.

MYHB Group's net liability in 1999 stood at RM85.1 million, or an
audited RM2.34 per share. Last year it worsened to RM89.8 million,
or an unaudited RM2.48 per share.


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

BAYANTEL:  Negotiates Creditors on Debts
----------------------------------------
Bayan Telecommunications Inc. (BayanTel), a unit of Benpres
Holdings Corp., is asking creditors to examine its debt structure
because it might not fit with the present market conditions and
rising interest rates, Manila Bulletin reported on Monday.

For the first nine months of last year, BayanTel posted a P2.07
billion loss. It is presently talking with its debt financial
advisor, Bank of America Asia Ltd., and hopes to formulate a plan
during the next 12 months.
   

MSF TIRE & RUBBER:  Shuts Down Operations
-----------------------------------------
MSF Tire and Rubber, Inc., a local unit of U.S.-based tire maker
BF Goodrich, wound up operations of its finance and maintenance
divisions on January 5 because of stiff competition and
substantial losses, according to the Monday edition of Business
World.
  
MSF spokesman Riz Dalangin said: "We truly regret that after more
than five years of operations in the Philippines, it became
necessary to take this action. The decision to close down became
necessary after sustaining several years of substantial financial
losses in a highly competitive environment." Some 750 workers in
its manufacturing plant in Paranaque City (south of Manila) will
lose jobs because of the closure.

Records from the Securities and Exchange Commission show that in
1999 MSF incurred a net loss of P59.74 million with recorded sales
of P1.74 billion.

The industry estimates the local market lost P900 million in 1997
and P883 million in 1998 because of cheap imported tires.


PHIL. NATIONAL BANK:  Government Owes PNB 2 Billion
---------------------------------------------------  
The Philippine National Bank (PNB) still needs to collect some P 2
billion in collectables despite offsetting the P10 billion loan
extended by the government's Philippine Deposit Insurance Corp.
(PDIC) on the total P12 billion government debt. Most of the debts
came from the advances made to pay Societe Generale Surveillance
(SGS) for customs inspection services under the Ramos
administration.

The plan was for the bank to offset government receivables from
the PDIC loan advances, according to Monday's issue of Business
World.

The PDIC is presently conducting a due diligence audit on PNB
records to determine the outstanding government debt.

PNB president Feliciano L. Miranda revealed other advances came
from the Philippine Sugar Commission (PhP4.6 billion), the Bureau
of Customs, the National Tobacco Corp., National Agribusiness
Corp., Philpost Leasing Corp., and the Pabahay sa Riles (Railroad
Housing Program).

Miranda said: "We would only sell PhP10 billion because our loan
with the PDIC is only that much."


UNIWIDE:  Attracts Two Foreign Groups
-------------------------------------
Two more foreign groups have expressed an interest in taking over
the Uniwide Group of companies despite the cancellation of French
retailing giant Casino Guichard-Perrachon SA's bid, according to
the Monday issue of Business World.

Securities and Exchange Commission (SEC) chairperson Lilia R.
Bautista revealed that American retail giant Wal-Mart Stores, Inc.
and another retailer, from either Hong Kong or Taiwan, have
signified their intention to acquire the failed retail company.

"Uniwide's rehabilitation continues -- it is just a matter of
amending the investor or white knight. With Casino's cancellation,
however, I have been told that cash payments will be delayed but
the dacion en pago (payment in kind) will push through as
scheduled," Ms. Bautista said.

Negotiations with Wal-Mart two years ago broke off because of the
retailer's P10billion debt load, when Uniwide then shifted its
focus to debt restructuring. But with the approval of the Retail
Trade Liberalization Act of 2000 (Republic Act 8752), Wal-Mart
renewed its interest in Uniwide, even conducting a due diligence
check in October.

When Casino withdrew its P4 billion capital infusion, the company
had no alternative but look for a replacement.


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

MICASA DELEOPMENT:  Petitions Court to Stop Creditor
----------------------------------------------------
Micasa Development, owned by tycoon Ricky Goh Chin Soon, has asked
the high court's intercession to get the best possible price in
selling a 4,332-sq-m property in Loron g G, Telok Kurauproperty
that the company mortgaged to obtain a $6.9 million debt from
Vickers Capital.

Justice M.P.H. Rubin said the petition was an attempt to confuse
Vickers Capital in recouping it losses after the default. Micasa
had taken a $25 million loan from Vickers Capital, a subsidiary of
stockbroking firm Vickers Ballas, according to the Wednesday
edition of the Straits Times.

In August 1998, Mr. Goh and Goh Teck Beng were asked to pay $25.9
million (including interest on the mortgage of 18 percent per
year).  When they failed to pay, the property was put up for sale
in 1999 and sold for $24.5 million. The two men were then asked to
pay the remaining balance of $6.9 million.

The High Court, through Justice Rubin, did not agree with Mr.
Goh's contention that in describing the property as a `mortgagee
sale,' a discount could be obtained. He said the two men admitted
that the property was valued at around $23 to $24 million.

Mr. Goh sued Vickers Capital for breach of contract and
negligence.


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

BANG CHANG:  Creditors to Vote January 25 on Debt Plan
------------------------------------------------------
Creditors are demanding amendments to the debt-restructuring plan
of Ban Chang Group, who expect to vote on the plan January 25.

Sarayuth Kauphaichanon, executive director of Asian Capital &
Consultant Co., which prepared the debt restructuring plan, are
uncertain of the outcome because they have not approached
creditors for the approval of the plan.

Some 15 percent of the company's debts are with Bangkok Bank,
according to Friday's edition of the Bangkok Post.

One creditor said that most of Ban Chang's subsidiaries cannot
repay their debts amounting to Bt4.78 billion.

The restructuring plan would have the creditors forgive all
accrued interest and guaranteed obligations for subsidiaries
totaling Bt 1.8 billion, with a portion involving a debt-equity
conversion. After the conversion, the company will still need
seven to ten years to pay some Bt260 million of the remaining
debt.


THAI PETROCHEMICAL:  ABN Amro Casts Doubts on Reorganization Plan
-----------------------------------------------------------------
Thai Petrochemical Industry will be able to meet the Bt600 debt
repayment for January because the reorganization plan is on
schedule. But securities company ABN Amro doubts the company can
make it payments and has recommended investors sell, Business Day
reported on Thursday.

The TPI share price dropped by 0.19 baht to 3.60 baht yesterday.

Meanwhile, TPI founder Prachai Leophairatana, retiterated his
opposition to the appointment of his brother, Pramual, as the new
CEO. He reportedly fears creditors favor his brother.

Pramual is currently a director of TPI, the largest corporate
debtor in Thailand.



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