TCRAP_Public/010119.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

           Friday, January 19, 2001, Vol. 4, No. 14A

                           Headlines


A U S T R A L I A

STEEL TANK:  Workers Compensation Released Soon
TANDARA ENTERPRISES:  Court Turns Over Firm to Liquidator


C H I N A  &  H O N G  K O N G

GUANGDONG INVESTMENT: Disposes of Assets
HANNY HOLDINGS:  Raises HK$334M to Pay Debt
HONG KONG TERMINAL:  Seeks Cut in Interest Rate


I N D O N E S I A

GARUDA:  Fails to Meet Restructuring Deadline


J A P A N

CHIYODA LIFE:  Sells Hotel New Japan
HIKARI TSUSHIN:  Suspended from Trading


K O R E A

DAEWOO MOTOR:  Union Approves Strike
HANKOK TRUST:  Fails to Honor Checks
HYUNDAI ELECTRONICS:  Raises Export Credit Ceiling
HYUNDAI INDUSTRIES:  Separates from Hyundai Group
SAMSUNG:  Creditors Discuss Repayment Failure


M A L A Y S I A

METROPLEX:  Redeems RM310M Bonds


P H I L I P P I N E S

BAYAN TELECOMMUNICATIONS:  Talks with PLDT Shelved
NATIONAL STEEL:  Displaced Workers Seek to Reopen Plant
UNIWIDE:  Political Crisis Scares Investors


T H A I L A N D

ADVANCE PAINT:  Debt Restructuring Delayed
KARNCHANA ANAN FUND: Posts Bt33M Net Loss in First Quarter
SIAM CITY FUND:  Posts BT80.46M Net Loss in Second Quarter


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

STEEL TANK:  Workers Compensation Released Soon
-----------------------------------------------
Steel Tank and Pipe (STP) workers expect to receive their
percentage from the sale of `work in progress' and other stock
on Friday as a first installment of the workers' entitlements.

Former STP worker Jim Greenland said the men are expecting to
receive no more than half of their entitlements, Newcastle
Herald reported on Monday. The remainder will still have to be
negotiated by the creditors, the Weeks family and their
advisers. Greg Hall, appointed receiver from
PriceWaterhouseCoopers, is digging into the assets of the Weeks
family to recover all of its $10 million debt. Assets include
Dome Engineering in Sydney and a factory in Perth.

"The receiver/manager has first call over the fixed charge
assets, which are essentially the plant and equipment and
land," said Weeks family accountant David Levi. "The
administrator under the pooling deed of arrangement being
worked out between the parties would be looking at the floating
charge assets, the debtors and stock."

He said the workers could be paid in full because the pool of
floating assets was "so fat."


TANDARA ENTERPRISES:  Court Turns Over Firm to Liquidator
----------------------------------------------------------
The Supreme Court has ordered Tandara Enterprises Pty. Ltd. and
Herne Hill, subsidiaries of Swan Valley Cheese Co., into the
hands of insolvency accountants to investigate the excess $1
million claim by creditors, the West Australian reported on
Saturday.

The control over Herne Hill is being disputed by a liquidator,
an administrator and the National Australia Bank. The court
appointed insolvency accountant Louis Nilant as liquidator of
Tandara Enterprises in December 13 last year.

Australian Securities & Investments Commission records show
Tandara has National Australia Bank and two private investors
as secured creditors of the company. The bank has a $200,000
secured exposure and investors have secured claims exceeding
$250,000.

Tandara directors listed $790,000 in claims from unsecured
creditors with debts totaling about $1.3 million. The company
had about $30,000 in assets including $1,200 in cheese stock
and $1,000 in milk.

Nilant said he has the record of the company's valuation of
equipment, owned the business name and an indemnity against the
trust's assets and dispute in trust will have no bearing.


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

GUANGDONG INVESTMENT: Disposes of Assets
----------------------------------------
Guangdong Investment (GDI) will dispose of its interest in
other Guangdong units to raise HK$205 million cash, giving it a
dollar-for-dollar recovery of receivables, South China Morning
Post reported on Wednesday.

Guandong Development Holdings (GDH) will buy its entire 70
percent stake in GD Shenzhen including its HK$1.33 million
debt. This represents 1.35 percent to the net asset value of
GDI's interest in GD Shenzhen.

GDH is the new holding company established following the
completion of a US$5.95 billion debt restructuring of the
Guangdong provincial government's insolvent investment arm,
Guangdong Enterprises (Holdings) (GDE), which now owns a 55.49
percent stake in GDI.

"The disposal will also provide the group with the funds needed
to meet certain payment obligations of the group in connection
with the debt restructuring of one of its members," said GDI
chairman Wu Jiesi.

The GDI debt-restructuring plan requires the settlement of a
378.01 million yuan payment.


HANNY HOLDINGS:  Raises HK$334M to Pay Debt
-------------------------------------------
Hanny Holdings, part of Charles Chan Kwok-keung's empire, has
raised HK$334 million by trading shares in the stock market
34.12 percent lower at 16.8 HK cents on heavy trading, with
102.49 million shares worth HK$18.19 million changing hands.

Shareholders' one rights share will be exchanged to two shares,
according to the Thursday issue of the South China Morning
Post.

The money raised will settle the HK$322 million promissory note
that will fall due in April. The total debt stood at HK$1.16
billion as of last September.


HONG KONG TERMINAL:  Seeks Cut in Interest Rate
-----------------------------------------------
Hong Kong Air Cargo Terminals Ltd. (Hactl) is seeking a debt-
servicing cost reduction by allowing it to cut interest rate
costs because of favorable market conditions. Hactl is
borrowing HK$4.2 billion for general corporate spending for the
construction of its SuperTerminal One facility at Chek Lap Kok
airport, raising its debt to HK$6.62 billion.

The company is offering banks an interest of 37 basis points
over the Hong Kong Interbank offered rate, which was last fixed
at 5.5 percent for a three-month loan, South China Morning Post
reported on Thursday. The loan is partly a revolving credit
facility, allowing Hactl access to funds on demand totaling
HK$750 million and due in five years. The remainder, a term
loan, matures in six years.

The arranging banks are the Industrial & Commercial Bank of
China, BOCI Capital, the Bank of Tokyo Mitsubishi, China
Construction Bank, Mizuho Financial Group, Sanwa Bank, Standard
Chartered Bank and Banca Nazionale del Lavoro.


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

GARUDA:  Fails to Meet Restructuring Deadline
---------------------------------------------
Garuda Indonesia, the flagship airline, was able to complete
restructuring of only 70 percent of its debts in 2000,
according to a report in Wednesday's Asia Pulse. Emirsyah
Satar, a company official, said the restructuring would be
completed by the end of this month as agreed to with the
airline's creditors.

Bank Mandiri was initially asked to provide US$100 million risk
participation but was denied.

Garuda's remaining debt as of July 1999 was US$1.2 billion
compared to US$1.8 billion in 1998. The debts included loans to
buy and lease aircraft and commercial papers.


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

CHIYODA LIFE:  Sells Hotel New Japan
------------------------------------
Chiyoda Mutual Life Insurance Co. will sell the closed Hotel
New Japan as part of its restructuring plans, according the
Thursday issue of Japan Times On Line. The hotel, which was
transformed into an "intelligent" building, is on a 8,000 sq.
meter plot in Tokyo's Chiyoda Ward. At the height of the 1990's
"bubble" economy it was worth 300 billion yen.

The property was placed as collateral for the loans of
companies owned by Hideki Yokoi, the former owner. In 1994
Chiyoda held an auction for the hotel at a minimum sale price
of 99 billion yen, which turned away potential investors.
Although the price was later reduced to 60 billion yen in 1995
it still failed to attract a buyer. Chiyoda used its subsidiary
to buy the site itself.


HIKARI TSUSHIN:  Suspended from Trading
---------------------------------------
Hikari Tsushin International was suspended from trading because
of the plan to transfer its SAR-listed vehicle to its
investments in six Asian Internet companies at a price from
US$28 million to US$30 million in cash, South China Morning
Post reported on Wednesday.

The six assets to be injected included 149.4 million shares, or
14.5 percent, of Growth Enterprise Market-listed entertainment
portal operator Stareastnet.com for US$13.4 million. The deal
represented an acquisition price of 74.66 HK cents per share,
or a 36.7 percent discount to Stareastnet.com's closing price
yesterday of HK$1.18.

Other assets include a 14.5 percent stake in customized Web
site design services provider Outblaze for US$6.5 million; a 17
percent stake, or 2.4 million shares, in leading mainland e-
commerce Web site China 8848.net for US$6.64 million; 337,000
shares in Nasdaq-listed Chinese portal Sohu.com for US$342,000;
and small stakes in Internet portals @Network and Toecom.

The Japanese company's investments in these six companies
totaled US$60 million during the height of dot-com fever and
inherited a 3 billion yen (about HK196.48 million) net loss for
the first half of the year.


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

DAEWOO MOTOR:  Union Approves Strike
------------------------------------
Daewoo Motor's labor union has agreed to go on strike to
protest management's decision to lay off 2,794 employees
without consulting the union, according to the Tuesday edition
of the Digital Chosun. More than 65 percent of the union's
6,158 members who participated in yesterday's vote support the
strike.

Daewoo Motor management submitted its layoff plan to the
Ministry of Labor, which would continue acceptance for
voluntary retirement until the end of the month to achieve its
target of eliminating a total 5,494 jobs.


HANKOK TRUST:  Fails to Honor Checks
-------------------------------------
Hankok Real Estate Trust (HRET) failed to honor checks worth
122.7 billion won that matured last year and may declare
bankruptcy. Samsung Heavy Industries demanded payment for
checks worth W83.8 billion that matured last year, the Digital
Chosun reported on Tuesday. The company filed for bankruptcy
once before, following a cash crisis over a year ago.

But on Wednesday Samsung Industries put off the demand until
January 31 to give way to negotiating in ways HRET can settle
payment amicably, the Digital Chosun reported on Wednesday.

HRET is currently finishing 18,300 housing units in an
apartment complex undertaken with the help of 798 primary
contractors and subcontractors demanding payment for their
respective work.

The company was established in 1991 by the Korea Appraisal
Board and commercial banks. Indiscriminate expansion and a
sluggish construction market pushed the company on the brink of
bankruptcy in October 1999.


HYUNDAI ELECTRONICS:  Raises Export Credit Ceiling
--------------------------------------------------
Creditors have raised the export credit ceiling of Hyundai
Electronics Industries (HEI) to $1.4 billion from $800 million,
which will reportedly improve the company's financial
condition.

Korea Exchange Bank, the main creditor bank, and Korea First
bank, which is owned by Newbridge Capital of the United Sates,
participated in the expansion of export credit, according to
the Thursday issue of the Korea Herald.


HYUNDAI INDUSTRIES:  Separates from Hyundai Group
-------------------------------------------------
Hyundai Heavy Industries Co. (HHI) will separate from its
parent company Hyundai Group in mid-2001. Some analysts predict
that the separation might come during the first half of this
year, after it repurchases equities held by affiliated
companies, the Korea Herald reported on Thursday.

Daeshin Securities Co. predicted that HHI could cast off its
negative image as the financial holding company for Hyundai
Group affiliates soon, as the company recently bought back a
6.9 percent stake held by Hyundai Engineering & Construction
Co. (HEC) and plans to purchase a 12.5 percent stake in Hyundai
Merchant Marine Co. (HHM).

The securities firm predicts that HHI received $6.4 billion
worth of orders as of November last year and had yet to meet a
further $8.5 billion in orders. With the accumulated order
value standing at $4.3 billion and $6.3 billion worth of orders
that have not been met, the company was expected to continue to
see brisk business this year. The profit ratio is estimated to
be 6.6 percent while the return on equity (ROE) will stand at
12.1, both relatively high levels.

Sales projections this year will reach 7.3 trillion won and
ordinary income is expected to be 482.6 billion won. Earnings
per share (EPS) are expected to be 4,394 won.


SAMSUNG:  Creditors Discuss Repayment Failure
---------------------------------------------
Five creditors of Samsung Motors met yesterday to discuss their
next move after the car maker's failure to repay its 2.45
trillion won debt.

The five creditors are Hanvit Bank, Korea Exchange Bank, Korea
Development Bank, Daehan Investment Trust Management and
Securities and Seoul Guarantee Insurance Co., according to the
Wednesday edition of the Korea Herald.

They are studying the possibility of seeking legal action
against Samsung for failure to follow a bilateral agreement on
the repayment of debts.


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

METROPLEX:  Redeems RM310M Bonds
-------------------------------
Metroplex Bhd., a property development company, redeemed bank
guaranteed bonds worth RM310 million from creditors on January
15, according to the Rating Agency of Malaysia Bhd. (RAM). RAM
rates Metroplex bonds at BBB2 because it does not have rating
obligations on the bonds, according to the Thursday issue of
the Edge Daily.

The guarantors include Arab-Malaysian Finance Bhd., Arab-
Malaysian Merchant Bank Bhd., RHB Bank Bhd., Bank Utama (M)
Bhd., Perwira Affin Bank Bhd., Public Bank Bhd., Aseambankers
Bhd. and Malayan Banking Bhd.

Metroplex failed to redeem the bonds on December 20 last year.
It businesses include casino operations, property investment
and development, hotel and leisure and construction.


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

BAYAN TELECOMMUNICATIONS:  Talks with PLDT Shelved
--------------------------------------------------
Bayan Telecommunications Inc. (BayanTel) has put off talks with
Philipine Long Distance Telephone Co. because of differences in
valuation and unfavorable economic terms.

Carlos Tria Jr., managing director of BayanTel sister firm
Integrated Broadband Services, said the company's debt
restructuring is open to equity infusion, loans or similar
arrangements. Bayantel had $500 million in debts, the
Philippine Daily Inquirer reported on Thursday.

BayanTel has hired Bank of America Corp. to map out a debt-
restructuring plan.

The company has missed making a $13.5 million coupon payment
and is talking to creditors to renegotiate its debts.

Bondholders were told, in a teleconference, that BayanTel would
not make interest payments on $200 million of bonds maturing in
July 2006 until debt-restructuring talks are completed in the
next 6 to 12 months. Coupon payments on the bonds, sold in July
1999, fall due January 15 and July 15 of each year.

Carla Paras-Sison, a spokeswoman for Benpres Holdings Corp.,
BayanTel's parent company, said the P20 billion of debt as of
the end of 2000 was bloated because of the weakening of the
peso. Nine-tenths of the debt is foreign currency denominated.


NATIONAL STEEL:  Displaced Workers Seek to Reopen Plant
-------------------------------------------------------
Displaced laborers of National Steel Corporation (NSC) have
asked the appointed liquidator to allow the reopening of one of
the firm's shuttered plants. Allengoal Steel Fabrication and
Trading Corp. has offered to rent the facility and make a
capital infusion.

Simplicio H. Villarta, Jr., NSC Labor Union (NSLU) president,
said they are backing the plan so that the plant can resume
operations but creditor banks are opposing it. "The bankers'
bet is nothing but a ploy to prevent NSC from operating, so
their (creditors') dubious agenda could be successfully
pursued," he said, according to the Thursday issue of Business
World.

Allengoal earlier forged a contract with NSC's Ibrahim Bin
Bidin for an eight-month lease of the NSC plant in Iligan City.
Under the lease agreement, Allengoal will infuse an estimated
amount of P150 million ($2.74 million at P54.808=$1) within the
first two months to rehabilitate the NSC plant and then pay a
monthly rent of P12.76 million ($.233 million) for the
remaining six months.

NSLU also asked the Securities and Exchange Commission (SEC) to
reject the rehabilitation plan proposed by the interim
receivership committee (IRC) because it is a type of
liquidation plan.

"A sensible, intelligent and objective assessment of the IRC-
crafted rehabilitation plan will show that said plan is
actually a disguised liquidation plan," said a company
statement. "The rehab plan was really designed to be rejected
by any thinking majority shareholder what with its highly
skewed provisions completely in favor of one party and
practically shutting out the other."

But SEC chairperson Lilia R. Bautista said they have no basis
asking for the lifting of the liquidation order.

The NSLU likewise wants a preference in the payment of claims
amounting to over P700 million. There is a possibility,
however, that it will not receive the full payment if the steel
plant is sold at a price less than its outstanding debts.


UNIWIDE:  Political Crisis Scares Investors
-------------------------------------------
Two interested investors of Uniwide Group have backed out
because of the worsening political problems gripping the
country. One group is based in Hong Kong and Taiwan while the
other is retail giant Wal-Mart Stores Inc. Both reportedly have
deferred their plans, according to the Thursday issue of
Business World.

Despite the absence of an investor, Uniwide will still
streamline operations and work on a tight budget to continue
running its retail business. But management says the group will
not resort to retrenchments but a reduction of working days to
save costs. The group is also negotiating with lessors to
reduce rates on some properties.

The company still has P260 million in cash, most of which came
from the sale of First Paragon Corp. for P80 million last year.

The group remains under the supervision of an interim
receivership committee, which will handle Uniwide's
rehabilitation.


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

ADVANCE PAINT:  Debt Restructuring Delayed
------------------------------------------
Advance Paint and Chemical (APC) is seeking permission from the
stock exchange to delay submission of its debt rehabilitation
plan by 12 months while it is in the process of transferring
loans to an asset management company. Krung Thai Bank
transferred APC's delinquent loans to Sukhumvit Asset
Management Co. Ltd. (SAM), the Nation reported on Monday.

SAM is in the process of appointing its fund managers while APC
submits a rehabilitation petition to the Central Bankruptcy
Court.


KARNCHANA ANAN FUND: Posts Bt33M Net Loss in First Quarter
----------------------------------------------------------
Karnchana Anan Fund (KAF) posted an audited net loss of Bt32.99
million in the first quarter of operations ending November 30,
against a profit of Bt1.79 million in the previous year.

For September to November of last year KAF recorded a net loss
of Bt32.99 million, compared with a profit of Bt1.79 million in
the previous year, the Nation reported on Monday.


SIAM CITY FUND:  Posts BT80.46M Net Loss in Second Quarter
----------------------------------------------------------
Siam City Fund (SCIF) posted a net loss of Bt80.46 million for
the second quarter ending November 30, compared with a loss of
Bt10.84 million in the same period the year before.

For the first six months of operations, also ending November
30, SCIF's audited net loss amounted to Bt113.21 million
against a profit of Bt11.60 million over the same period in
1999, the Nation reported on Monday.



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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