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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

                 Wednesday, January 17, 2001, Vol. 4, No. 13


A U S T R A L I A

BURNS PHILIP:  Liquidation Proceedings Commence
CARLOVERS CARWASH:  Chain Offers Slim Hope for Shareholders

C H I N A  &  H O N G  K O N G

ZHENGZHOU BAIWEN:  Restructuring Plan Approved


J A P A N

ITOCHU CORP.:  To Dispose of Two Subsidiaries
SNOW BRAND:  Closes Four Plants


K O R E A

DAEWOO MOTOR:  GM Announces Takeover Next Month
HANBO STEEL:  Spins Off Units & Disposed
HYUNDAI ELECTRONICS:  Prepares for Separation from Hyundai Group
SAMSUNG ELECTRONICS:  Assets Fell
SSANGYONG INFORMATION:  Carlyle Group to Purchase Stake


M A L A Y S I A

MALAYSIAN AIR LINES:  MAS Head Selection Aboveboard


P H I L I P P I N E S

BAYAN TELECOMMUNICATIONS:  Fails to Pay Bondholders


T H A I L A N D

THAI PETROCHEMICAL:  Makes Final Appeal to Supreme Court


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

BURNS PHILIP:  Liquidation Proceedings Commence
-----------------------------------------------
Burns Philip Trustee Co. (Canberra) Ltd. will begin liquidation
proceedings in a New York Supreme Court next Tuesday to recover
$4 million from Peter Daniels Clarke, a former American merchant
banker.

Clarke was convicted by ACT Magistrates Court in April of last
year for corporate fraud but was granted bail when the case was
elevated to ACT Supreme Court, Canberra Times reported on
Saturday. The members of ACT Supreme Court were Justices Terence
Higgins, Ken Crispin and Donnell Ryan.

Clarke subsequently fled the territory during sentencing before
Justice John Gallop in June.

Ferrier Hodgson, liquidator of the firm, will sue Clarke's lawyer
for negligence on civil matters and will attend the trial in New
York next week.


CARLOVERS CARWASH:  Chain Offers Slim Hope for Shareholders
-----------------------------------------------------------
CarLovers Carwash, a Berjaya-controlled car wash and video rental
chain owner, has warned shareholders about a gloomy future
following negative results posted for the first half of last
year. Carlovers posted a net lost A$1.5 million in the six months
to Oct. 30. Shares have been suspended on the Australian Stock
Exchange since September 29 after management failed to submit the
company's annual report, Bernama reported on Friday. Grant
Thornton, company auditor, said the annual report is still in
doubt because of a lack of accounting controls.

The company's current retained loss is A$17.6 million compared
with a pre-suspension market capitalization of A$13.5 million.
Sales rose 131 percent to A$17.6 million, reflecting the
consolidation of its majority stake in Video Ezy Australiasia.
Current liabilities exceed assets by A$5million.  Total
borrowings stood at A$7.6 million as of October 30 of last year.
Even though the company generated A$5.2 million in operating cash
flow, the expenses in repayment and property caused an imbalance
of 42 percent to A$726,000.

Berjaya Group, which owns 72 percent of CarLovers, said it would
assume all debts of CarLovers or its subsidiaries before April
30, 2002.


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

ZHENGZHOU BAIWEN:  Restructuring Plan Approved
----------------------------------------------
The board of directors of Zhengzhou Baiwen Co. have approved a
capital restructuring plan, calling for the withdrawal of the
company's capital, debts, businesses and staff and transferring
them to Sanlian Group of Shandong, its parent company.

The plan also calls for Sanlian Group to buy out Baiwen's debt
with China's Cinda Asset Management Corp. worth 1.5 billion
renminbi (US$181 million) at a rediscounted price of 300 million
renminbi, China On Line reported Wednesday.

Eventually Sanlian will become the listed company with Baiwen as
its shell.

The remaining Baiwen debts to Cinda will also be taken over by
Sanlian but with a guarantee from the municipal government of
Zhengzhou.

The moves have the approval of the China Securities
Regulatory Commission (CSRC) and Baiwen's largest creditor,
Cinda.

But investigations are still on going on the circumstances behind
the debt and possible illegal operations.

Sanlian Group is one of the eight largest enterprises in
Shangdong province. Baiwen's quality assets will be part of the
retail business of Sanlian Shangshe, Sanlian Group's exclusive
subsidiaries.


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

ITOCHU CORP.:  To Dispose of Two Subsidiaries
---------------------------------------------
Itochu Corp. has announced plans to dispose of two of its
agricultural subsidiaries but says this will not have any effect
on forecasted earnings for March 2001.

Eximcoop S.A., one of the two subsidiaries, is a cereal trading
company based in San Paulo, Brazil, which is facing financial
problems because of slump in farm product prices, Jiji Press
English News Service reported on Thursday.

Iswa, the other subsidiary, is an egg production subsidiary in
northeastern Japan prefecture of Iwate. Iswa's business will be
transferred to other related subsidiaries.


SNOW BRAND:  Closes Four Plants
-------------------------------
Four Snow Band Milk Products Co. factories are scheduled to be
closed at the end of March 2002, transferring some 278 full-time
employees and firing 94 part-time workers in an effort to become
profitable again. The four plants are in Sendai, Miyagi
Prefecture; Shibata, Niigata Prefecture; Tokyo's Kita Ward; and
Takamatsu, Kagawa Prefecture.

The Osaka factory will also be closed following a food-poisoning
outbreak caused by milk products shipped from the factory in June
and July last year, according to the Monday edition of Japan
Times On Line.

Some 10-office buildings will be securitized to help the
financial condition of Snow Brand. The Tokyo head office in
Shinjuku Ward will be the first by the end of March 2001. In the
next two years, the properties of the Tokyo, Osaka and Sendai
plants will also be securitized or sold. The Shibata and
Takamatsu factories will become distribution depots, company
officials said.

Snow Brand hopes the asset disposal will yield 20 billion yen in
revenue.


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

DAEWOO MOTOR:  GM Announces Takeover Next Month
-----------------------------------------------
General Motors has requested that Daewoo Motor undertake a
genuine restructuring effort before making a final decision to
take over the Korean carmaker next month, the Korea Herald
reported on Monday.

Minister of Finance and Economy Jin Nyum warned that the GM offer
might fail following the September pullout of Ford if the
restructuring plan fails to gain ground. "If Daewoo Motor
officials demonstrate restructuring efforts, then the possibility
of a deal with GM will increase. All those things, I think,
should be finalized no later than next month," said the minister.

The plan will also determine Daewoo's sales value to the GM-Fiat
alliance, which has entered into its fifth month of negotiation.

Labor and management have battled over layoffs and other
restructuring steps. The company will reduce its workforce by
3,555, or 52 percent of the planned layoffs of 6,884 workers. The
labor union has plans to strike in opposition to the planned
layoffs and reportedly has hopes of disrupting the main plant's
operation, thereby forcing suppliers to declare bankruptcy.

GM President & CEO Rick Wagoner said many of GM's facilities are
overlapping some of Daewoo's operations and plants, which might
create difficulties in a takeover.


HANBO STEEL:  Spins Off Units & Disposed
----------------------------------------
Hanbo Iron and Steel is seeking the government's permission to
dispose of excess steelmaking facilities on a piecemeal basis as
part of its restructuring program.

Foreign buyers are negotiating for the purchase of "A" sector
steel plants, which are capable of producing 1 million tons of
steel a year and contributed 20 billion won in profits last year.
The "B" sector includes cold coil and corex plants to be sold as
a separate unit, Korea Herald reported on Monday.

The government is studying proposals that would split the two
units and sell them separately to foreign buyers.


HYUNDAI ELECTRONICS:  Prepares for Separation from Hyundai Group
----------------------------------------------------------------
Hyundai Electronics Industries Co. (HEI) has accelerated its
timetable from June to March for parting ways with the Hyundai
Group amidst pressure from creditor banks for visible results.

For a fresh start, the company has already started a project to
create a new corporate identity, including a new name, Korea
Herald reported on Saturday.

Creditors have promised fresh loans amounting to 400 billion won
to HEI but in return they must have a self-rescue plan that
includes a corporate governance system. Other financial
institutions extended syndicated loans amounting to 800 billion
won last December on the condition that HEI has to separate from
its parent company.

The separation should go on smoothly since Hyundai Group's de
facto owner Chung Mong-hun is no longer with HEI's management.  
Employees see no reason to delay but still must handle such
obstacles as Hyundai Merchant Marine's (HMM) 9.25 percent stake
in the company. Other related holdings are Chung's 1.7 percent
and Hyundai Heavy Industry's 7.01 percent.
  
Observers say that Hyundai Heavy does not need to sell off its
stake to facilitate HEI's separation, as the company belongs to
ChungMong-joon.

Salomon Smith Barney is acting on behalf of Hyundai Group for the
sale of stakes held by HMM and predicts a favorable market
situation.


SAMSUNG ELECTRONICS:  Assets Fell
---------------------------------
Samsung Electronics' total assets fell from 110.75 trillion won
to 106.79 trillion won after it was separated from Samsung Motors
on December 22 of last year, the Korea Herald reported on Friday.  
The electronics firm's stake in Samsung Motors was sold to
Renault-Samsung Motors.

On January 2 Samsung Electronics acquired a 96.8 stake in Korea
Electronic Information Distribution. Samsung Group has reduced
the number of its subsidiaries to 63 as defined by the Fair Trade
Law.


SSANGYONG INFORMATION:  Carlyle Group to Purchase Stake
-------------------------------------------------------
Ssangyong Cement Industrial Co. plans to sell 3.84 million shares
of Ssangyong Information & Communications Corp. (SICC) for 316.8
billion won to Carlyle Group, an American investment firm.
Carlyle will pay 82,500 won per share. If SICC can achieve a 200
percent increase in operating income, the American firm will
inject an additional 145.6 billion, according to the Monday issue
of the Korea Herald.

A due diligence audit of SICC is underway. A formal agreement is
expected by February 15 at the latest.

The disposal of the SICC shares is part of Ssangyong Group's
rehabilitation plan that so far has raised more than 2 trillion
won through the disposal of subsidiaries and real estate.
Ssangyong Cement will join with Taiheiyo Cement Co. of Japan to
institute measures that will enhance profitability. Taiheiyo owns
29 percent stake in Ssangyong Cement.


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

MALAYSIAN AIR LINES:  MAS Head Selection Aboveboard
---------------------------------------------------
The Malaysian government, owner of a 30 percent stake in
Malaysian Air Lines (MAS), wants to ensure that the selection of
a new chairman of the board for the airline is made properly.
Hari Raya, Ministry of National Unity and Social Development,
said: "We can get into trouble if we do it wrongly," Bernama
reported on Friday.

A 29.9 percent stake in MAS at RM8 per share was bought from
Naluri Bhd., costing the government RM1.79 billion.

Through various investment agencies, the government now owns 33.3
percent of MAS. Under the guidelines for mergers and takeovers it
can make a general offer for the remaining shares it does not own
at the last price paid for the shares.


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

BAYAN TELECOMMUNICATIONS:  Fails to Pay Bondholders
---------------------------------------------------
Bayan Telecommunications Inc. (BayanTel) has informed bondholders
that it cannot make payments for the $13.5 million that fell due
on January 15 because they are still finalizing a viable debt
restructuring plan.

Ochie Gloria, BayanTel investor relations and financial planning
head, said:  "We are doing a standstill as part of our debt
restructure process... until we come up with a viable plan. The
purpose of the restructuring is to match the internal cash flow
with the obligations so the company can concentrate towards
growing the business," according to the Tuesday edition of
Businessworld.

The company still has 30 days or until February 15 to pay
bondholders.

In 1999, BayanTel issued a $200 million, seven year, fixed-rate
U.S. bond with semi-annual interest payments in January and July.
The bond carries an annual interest rate of 13.5 percent
equivalent to $27 million (P1.403 billion) and will mature on
2006. During the second half, it will have another P1.5 billion
for a total of P3 billion this year, Mr. Gloria said.

The company's debt ballooned to more than P20 billion, 90 percent
dollar-denominated, following the devaluation of the peso
relative to the dollar. The company's total debt stood at P25.989
billion and stockholders' equity at P10.589 billion.

BayanTel signed a covenant with creditors that its debt-to-equity
ratio should not exceed the 2:1 level.


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

THAI PETROCHEMICAL:  Makes Final Appeal to Supreme Court
--------------------------------------------------------
Prachai Leophairatana, former head of Thai Petrochemical
Industry, will make a final appeal to the Supreme Court to
reverse the decision of the Central Bankruptcy Court regarding
the creditors' handling of a restructuring program involving
US3.7 billion in debt.

Prachai believes that Effective Planners, the creditors'
appointed restructuring planner, is creating a misguided plan to
rescue the company, according to the Monday edition of Business
Times.

Based on the law, the bankruptcy court's decision cannot be
appealed by TPI except with the approval of the chief justice of
the bankruptcy court.

Surasak Vajasit, a lawyer from Freshfields representing one of
the major creditors, International Finance Corp., said: "That's
why Mr. Prachai needs the chief justice so badly. But by
attacking the judges, Mr. Prachai has lost friends."

Last December Prachai claimed that the court's judges were biased
because the courthouse is located in a building owned by Bangkok
Bank, TPI's largest creditor.

But analysts believe that the bankruptcy court will turn down
TPI's appeal based on past decisions regarding the appointment of
the planner and how much crude oil the cash-strapped company
should buy to run its refineries.



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.

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