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                      A S I A   P A C I F I C

            Wednesday, January 31, 2001, Vol. 4, No. 22

                            Headlines


A U S T R A L I A

ENDEAVOUR PRINTING: Creditors Will Wait Until 2003
NOMAD TELECOMMUNICATIONS: In Poor Shape


C H I N A  &  H O N G  K O N G

FUJIAN TRUST:  Misses Samurai Bond Repayment
SHANGHAI TRUST:  Misses Samurai Bond Repayment
SHANDONG TRUST:  Misses Samurai Bond Repayment


I N D O N E S I A

SINAR MAS:  Agrees a Debt Deal with IBRA
PT SURYA SEMESTA:  Posts Rp43.9B Net Loss


J A P A N

DAIHYAKU LIFE:  Manulife Takes Over Policies
IMPERIAL METALS:  Sells Mining Rights
KUMAGAI GUMI CO.:  Slashes 10B yen Debt
MYCAL CORP.: Sells Stake in People Co.
TOKYO LIFE:  Receives 30 Billion Yen Assistance


K O R E A

HYUNDAI LIFE:  Government Sells Insurance Firm


M A L A Y S I A

TDM HOLDINGS: Focuses In Oil Palm


P H I L I P P I N E S

BW RESOURCES:  Chooses Pentacapital as Advisor
PHIL. NATIONAL CONSTRUCTION:  Lopez Group Bids for Tollway
UNIWIDE:  Debt-Swap Deal with UCPB Negotiated


S I N G A P O R E

A.I.F. INVESTMENT:  To Be Dissolved


T H A I L A N D

BANGKOK LAND:  Revamps Housing Project
NAKORNTHAI STRIP MILL:  Creditors' Vote on Plan Postponed


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

ENDEAVOUR PRINTING: Creditors Will Wait Until 2003
-------------------------------------------------
Endeavour Printing of Adelaide is trying to convince creditors to
wait for the resumption of debt repayment in January 2003,
according to the Sunday issue of the Advertiser.

Major creditors led by Fuji Xerox created the committee of
inspection to oversee the company's activities.

Grant Thornton, representing the accounting firm, is the deed
administrator.

The company filed for voluntary liquidation in December last year
with debts of about $A4 million.


NOMAD TELECOMMUNICATIONS: In Poor Shape
---------------------------------------
Nomad Telecommunications' plans to raise US$50 million on the
stock market and take over BHP's Melbourne office last year did
not succeed because it was over-extended, according to the Monday
issue of the Australian.

To recall, Nomad filed on January 18 for receivership after it
failed to raise capital eight months ago through a $130 million
bond flotation. Nomad operates 28 mobile phone stores under its
brand and hosts 120 stores through its dealer network.

ANZ Banking, which is owed $9.1 million under a secured, long-
term facility, appointed Andrew Beck and Peter Yates of Deloitte
Touche Tohmatsu as receivers and managers.


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

FUJIAN TRUST:  Misses Samurai Bond Repayment
--------------------------------------------
Moody's Investors Service downgraded the ratings of Fujian
International Trust and Investment Corporation (Fujian ITIC)
because it failed to make an interest payment on January 24 on
its Samurai 2006 bonds, according to China On Line on Saturday.

Ratings for Fujian ITIC's long-term foreign currency debt and
deposits were downgraded to Caa3 from B2. The Not Prime rating of
the company for its short-term obligations and the E financial
strength rating were unchanged. The rating outlook remains
negative.

China's central bank now will be forced to constrain Fujian
ITIC's future business activities, which will worsen its long-
term outlook.

The central bank will also pressure the company to wind down
business activities before a trust-based financial institution
begins to operate.

Moody reported Fujian ITIC failed to sufficiently recover funds
from investments and loans to repay creditors.

Although cash infusions from local governments did seem likely at
one time, such support now looks increasingly unlikely to be
forthcoming, Moody's said. The credit rating agency also feels
that financial support from the central government, or the
central bank, has long been most improbable.


SHANGHAI TRUST:  Misses Samurai Bond Repayment
---------------------------------------------
Moody's Investors Service downgraded the ratings of Shanghai
International Trust and Investment Corporation (Shanghai ITIC)
because it failed to make an interest payment on January 24 on
its Samurai 2006 bonds, according to China On Line on Saturday.

Ratings for Shanghai ITIC's long-term foreign currency deposits
were downgraded to B3 from B1, and its financial strength rating
to E from E+. The Not Prime rating of the company for its short-
term obligations was unchanged. The rating outlook remains
negative.

China's central bank now will be forced to constrain Shanghai
ITIC's future business activities, which will worsen its long-
term outlook.

The central bank will also pressure the company to wind down
business activities before a trust-based financial institution
begins to operate.

Moody reported ITIC failed to sufficiently recover funds from
investments and loans to repay creditors.

Although cash infusions from local governments did seem likely at
one time, such support now looks increasingly unlikely to be
forthcoming, Moody's said. The credit rating agency also feels
that financial support from the central government, or the
central bank, has long been most improbable.

Shanghai ITIC, headquartered in Shanghai, is a finance company
owned and controlled by the municipal government of Shanghai
city. The company reported total assets of Rmb 24 billion
(approximately US$2.8 billion) at year-end 1999.


SHANDONG TRUST:  Misses Samurai Bond Repayment
--------------------------------------------
Moody's Investors Service downgraded ratings of Shandong
International Trust and Investment Corporation (Shandong ITIC)
because it failed to make an interest payment on January 24 on
its Samurai 2006 bonds, according to China On Line on Saturday.

Ratings for Shandong ITIC's long-term foreign currency deposits
were downgraded to B3 from Ba3, and its financial strength rating
to E from E+. The Not Prime rating of the company for its short-
term obligations was unchanged. The rating outlook remains
negative.

China's central bank now will be forced to constrain Shandong
ITIC's future business activities, which will worsen its long-
term outlook.

The central bank will also pressure the company to wind down
business activities before a trust-based financial institution
begins to operate.

Moody reported Shandong ITIC failed to sufficiently recover funds
from investments and loans to repay creditors.

Although cash infusions from local governments did seem likely at
one time, such support now looks increasingly unlikely to be
forthcoming, Moody's said. The credit rating agency also feels
that financial support from the central government, or the
central bank, has long been most improbable.

Shandong ITIC, headquartered in Jinan, is a finance company owned
and controlled by the provincial government of Shandong province.
The company reported total assets of Rmb17 billion (approximately
US$2 billion) at year-end 1999.


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

SINAR MAS:  Agrees a Debt Deal with IBRA
----------------------------------------
Indonesia's Bank Restructuring Agency (IBRA) and Sinar Mas have
reached an agreement on the US$1.3 billion exposure of the latter
in its banking arm, Bank Intersional Indonesia (BII), by removing
it from the portfolio, according to the Tuesday issue of Business
Day Thailand.

BII stocks were the most heavily traded by volume yesterday,
gaining 10 rupiah to 35 rupiah on almost 600 million shares by
8:30am GMT (3:30pm Bangkok time) after the deal was announced.

This will increase BII's capital adequacy ration (CAR) from 6.8
percent as of September 2000 to above 10 percent.

IBRA is the majority shareholder of BII while Sinar Mas has 18
percent stake after the recapitalization.

Prijadi Praptosuhardjo, Finance Minister, said the government
wants to boost BII's capital by issuing $1.2 billion in bonds.

Edwin Gerungan, IBRA chief, said the details of the debt
agreement would be out in a follow up of the implementation of
the Investment Management Performance Agreement (INPA).

Under the INPA debt deal reached early last year, the government
agreed to guarantee BII's $1.3 billion intragroup lending -- more
than half its loan book -- to bring this under legal lending
limits.

In return, Sinar Mas had to provide a counter-guarantee on those
loans by pledging assets to the government with collateral valued
at 145 percent of the $1.3 billion intragroup lending.


PT SURYA SEMESTA:  Posts Rp43.9B Net Loss
-----------------------------------------
PT Surya Semesta Internusa posted a Rp43.9 billion net loss in
the first nine months of 2000 because of its debt payments,
according to the Tuesday issue of the Indoexchange News.

Last year its debt payments were Rp1.125 trillion at the end of
September, a 11.9 percent increase from the previous year of
Rp1.0006 trillion. For 1999 it enjoyed a Rp36.42 billion net
profit.

The company's liability has been growing at a moving average of
20.02 percent during the period between January 1997 and
September 2000. If measured in dollar terms, however, the firm's
liability has been decreasing by an average of 10.87 percent per
annum during the same period.

Total revenue reached Rp197.82bn in the first nine months of
2000, reflecting a 29.19 percent surge compared with Rp153.12bn
for the same period in the preceding year. Even so, revenue has
decreased with a moving average of 15.63 percent during the
period between January 1997 and September 2000.

The company still managed to book Rp45.33bn gross profits in the
first nine months of 2000, 7.33 percent lower than the Rp48.92bn
gross profit booked during the same period a year earlier. The
gross profit margin remains quite high at 22.91 percent but still
significantly lower than the 28.97 percent margin in full-year
1999.

In the meantime, operating expenses surged 57.79 percent to
Rp138.07bn, from Rp87.50bn for January to September 1999.

The decrease in operating profit to Rp14.43 billion was a 13.63
percent decrease as compared to Rp16.70 billion in the same
period a year earlier. In the fourth quarter of 1999 operations
suffered losses and net profit was only 14 billion for full-year
1999.

During Jan-Sept 2000, Surya Semesta Internusa suffered Rp3.85bn
non-operating losses, mainly due to Rp12.42bn net interest
expenses and Rp28.94bn net losses from associate companies.

Marseno Wirjosaputro, PT Surya Semesta Internusa president, said
subsidiaries made cash settlements and term loan with the bank
amounting to $77.4m and Rp96.3bn as of December 31, 2000. The
figure includes a $44m loan restructured at its 48 percent-owned
hotel investment subsidiary through cash settlement and term loan
with 9 years' tenor.


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

DAIHYAKU LIFE:  Manulife Takes Over Policies
--------------------------------------------
Manilife Financial Corp. will take over policies of failed
Daihyaku Mutual Life Insurance Co. reportedly worth 147 billion
yen and will seek more acquisitions in the next 12 months.

David Horman, chief executive of Manulife Century Life
Insurance Co., the Canadian firm's Japanese life insurance unit,
said there are going to be a lot of mergers and acquisitions in
Japan and they do not want to disqualify the company from future
acquisitions, according to the Friday edition of the National
Post.

Six Japanese life insurers have failed since 1997. Foreign
insurers are seeking entry into Japan's 30 trillion yen insurance
market.

Manulife Century is a joint venture set up in April 1999 by the
ailing Daihyaku and Manulife Financial Corp.  

Manulife will receive 145 billion yen from an industry-funded
safety net. Daihyaku's negative net worth will be passed on to
policyholders by reducing future insurance payouts worth 130
billion yen.


IMPERIAL METALS:  Sells Mining Rights
-------------------------------------
Imperial Metals Corp., a subsidiary of Sumitomo Corp., will sell
all of the rights to its copper mine development project in
Canada to project partner Imperial Metals Corp. by the end of
March, according to Friday's Jiji Press English News Service.

The mining rights are worth one billion yen. The company
forecasts to have a 6 to 7 billion loss from the sale but says
this will have no bearing on consolidated earnings.

Sumitomo's wholly owned subsidiary, SC Minerals Canada Ltd.,
embarked on the project in 1994, obtaining 47.5 percent of the
rights. It launched production in 1997, producing about 60,000
tons annually, but has been registering deficits because of a
sluggish market.

In line with the move, the subsidiary will be liquidated, the
officials said.


KUMAGAI GUMI CO.:  Slashes 10B yen Debt
---------------------------------------
Kumagai Gumi Co. will step up its restructuring plans by slashing
10 billion yen in interest-bearing liabilities and still has room
for additional cuts in group debts, Jiji Press English News
Service reported on Friday.

The interest-bearing debts will dip to 230 billion yen when the
plan finishes its term on March 2012. Stocks and real estate
worth 10 billion yen will be sold to make debt repayments.

The company's consolidated interest-bearing debts at the end of
March 2000 stood at 1.062 trillion yen. These debts will be
slashed to around 600 billion yen with the assistance of 450
billion yen in debt waivers granted by 15 creditor financial
institutions.

Kumagai Gumi will use operating profits and proceeds from asset
sales to reduce liabilities by more than 370 million yen from
fiscal 2001 through fiscal 2011.

The 12-year restructuring program will thus see a total debt
reduction of more than 820 billion yen.


MYCAL CORP.: Sells Stake in People Co.
--------------------------------------
Supermarket chain Mycal Corp. will sell its majority stake in a
major health club chain for 67.3 billion yen to Konami Co.,
according to Japan Times On Line on Tuesday. The sale involves
10,044,153 shares of People Co., or 53.3 percent.

After the sale, Mycal will focus on its retail business to create
stable cash flows for group businesses and sharply reduce the
group's interest-bearing debts. The company has 1.16 trillion yen
in interest-bearing debts as of August.

Aside from the 53.3 percent stake, Mycal plans to increase it to
60 percent of the outstanding shares in People.

For the remaining shares, Mycal will accept tenders for sale on
the market through February 19. It is offering a price of 6,700
yen for each share, which has a book value of 50 yen.

People is one of the largest health club chains, running the XAX
gyms and Freizeit health-care/entertainment facilities nationwide
with a capitalization of 1.04 billion yen.

It posted net profits of 2.3 billion yen on sales of 52.8 billion
yen on a consolidated basis in the business year to February 29.

The sell off of People is in line with Mycal's three-year
restructuring plan announced last Wednesday, under which it aims
to slash group debts to 910 billion yen by Aug. 31.

The sale of People will drastically reduce Mycal's net loss to 85
billion yen from the previous projection of 105 billion in the
current fiscal year ending February 28.


TOKYO LIFE:  Receives 30 Billion Yen Assistance
-----------------------------------------------
Tokyo Mutual Life Insurance Co. will receive 30 billion yen worth
of capital assistance from Daiwa Bank and other corporations to
improve its fiscal soundness, which is the lowest among the
nation's 12 major and mid-tier insurers, according to Monday's
Japan Times On Line.

The funds will be used to raise Tokyo Life's solvency margin from
the current 370 percent to more than 500 percent. The company's
solvency margin alarmed many analysts following a string of
failures in the insurance industry.

Tokyo Life's premium revenue dropped 7.6 percent to 6.19 trillion
yen in six months through September.

There were 1.8 times more canceled contracts than in the same
month the previous year because of the successive failures of
Chiyoda Mutual Life Insurance Co. and Kyoei Life Insurance Co.

Tokyo Life must improve its management structure and level of
transparency to facilitate the entry of alliances and foreign
firms.


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

HYUNDAI LIFE:  Government Sells Insurance Firm
----------------------------------------------
The Korean government is planning to sell Hyundai Life Insurance
Co. and two other ailing insurance firms through open bidding
next month and inject funds regardless of the outcome, Korea
Herald reported on Monday.

Hyundai Life together with Hanil and Samshin were declared
insolvent as liabilities exceeded assets.

Investors have until February 3 to submit letters of intent (LOI)
to the Financial Supervisory Commission. The options are to buy
one company or all three companies or buy through a purchase and
assumption (P&A) method.

Potential buyers of the troubled insurance companies will be
required to submit their bids to the commission by February 17,
while "priority negotiation partners" will be selected by
February 19, the commission said.

The formal signing will be done two months after the due
diligence audit.

If there are no takers, the government may place them under a
state-run financial holding company or merge with Korea Life
Insurance Co. through P&A.

Regardless of whether or not the three life insurance company may
be sold, the government plans to give them an estimated 700
billion won ($546.7 million) in public funds to help their
current negative net worth shift to the positive territory.


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

TDM HOLDINGS: Focuses In Oil Palm
---------------------------------
TDM Holdings Bhd. plans to shift its focus to the oil palm sector
and return to profitability as it reduces borrowings by one-
third, according to the Tuesday edition of the Edge Daily.

Raja Idris Raja Kamarudin,executive director of TDM Holdings
Bhd., said the divestment of the company's A&W subsidiaries will
improve TDM's cash position and the group's balance sheet.
  
TDM posted a cumulative net loss of RM30.97 million for nine
months to September 30 last year. The debt-laden TDM is
controlled by the PAS-led Terengganu government. Perbadanan
Memajukan Iktisad Negeri Terengganu holds a 33.79 percent stake
and Perbadanan Menteri Besar Terengganu 13.88 percent.


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

BW RESOURCES:  Chooses Pentacapital as Advisor
----------------------------------------------  
Property developer Megaworld Corp. has chosen PentaCapital
Investment Corp. as advisor to will evaluate options for its
72.72 percent stake in BW Resources Corp. by conducting financial
and legal due diligence, according to the Tuesday edition of the
Philippine Daily Inquirer.

"The PentaCapital advisory team will look at the financial
condition of Fairmont, its assets and liabilities, and recommend
to us whether or not the company can be turned into a vehicle for
profitable operations and whether or not it can offer increased
value to both Fairmont and Megaworld shareholders," said Francis
Canuto, a Megaworld spokesperson.

Megaworld had to transform BW Resources from a gaming firm into a
real estate company because its majority shareholder Dante Tan, a
close friend of the president, is involved in stock price
manipulation leading to the impeachment trial of deposed
president Joseph Estrada.

In a recent report, Keppel Securities said since Megaworld finds
it difficult to divest its stake, it is better the Andrew Tan
(Megaworld owner) take over control.

Megaworld acquired 1.2 billion shares of BW as part of an asset-
for-share swap involving the transfer of the company's Malate
property, which will be the site of the Sheraton Marina Complex.
Andrew Tan had intended to be a passive investor in the company.
The shares, however, were locked up for a period of one year and
were released only last week.

Megaworld's exposure to BW represented only around 3 percent of
its total assets. Thus, the company is confident that any sharp
drop in BW shares would not have a material impact on its total
asset portfolio.


PHIL. NATIONAL CONSTRUCTION:  Lopez Group Bids for Tollway
----------------------------------------------------------
The Philippine National Construction Corp (PNCC) will sell to the
Lopez group an 80 percent stake in the company's tollway
franchise.

According to Jose "Ping" de Jesus, Manila North Tollways Corp. (a
Lopez group subsidiary) would take a look at PNCC after being
placed on the auction block, Philippine Daily Inquirer reported
on Tuesday.

Last year there were only three bidders in PNCC's auction with
the highest bidder rejected by the Asset Privatization Trust. The
Strategic Alliance Development Corp. (Stradec) and Korean
pharmaceutical giant Dong-A offered only P1.228 billion for the
government's 80 percent share in PNCC because it was deemed way
below the indicative bid price of P7 billion.

The Lopez group did not join in the bidding last year because it
was only interested in the PNCC tollway business and not in its
real estate assets, De Jesus said.

According to an audit report, PNCC's booked assets are worth P23
billion and the unbooked assets are in Mandaluyong, Bicutan and
scattered all over the North and South Luzon Expressways.


UNIWIDE:  Debt-Swap Deal with UCPB Negotiated
---------------------------------------------
The Uniwide Group of companies is negotiating with United Coconut
Planters Banks (UCPB) on a payment-in-kind agreement that will
drastically reduce its P11.1 billion debt by over P1.04 billion
in a motion filed before the Securities and Exchange Commission
(SEC), according to the Tuesday issue of Business World.

The payment-in-kind or dacion en pago agreement calls for the
creation of a new company where assets such as lands within Metro
Manila and outside the capital will be transferred to the new
company as equity. Shares of this company will then be assigned
to UCPB equivalent to claims of over PhP1 billion.

The warehouse operator earlier forged a similar agreement with
seven other creditor banks.

Of the Group's 13 creditor banks, Metropolitan Bank and Trust
Co., Bank of the Philippine Islands, Global Business Bank
(formerly Asian Banking Corp.), Equitable PCI Bank, International
Exchange Bank, Philippine Bank of Communications, Rizal
Commercial Baking Corp. have given their formal approval to the
proposed repayment scheme.

The rehabilitation plan also called for the assets transferred to
an independent asset management company (AMC) that will oversee
liquidation.


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

A.I.F. INVESTMENT:  To Be Dissolved
-----------------------------------
A.I.F. Investment Ptc. Ltd. (Singapore), a wholly owned
subsidiary of Ajinamoto Co., will be dissolved because of huge
losses, Japan Times On Line reported on Tuesday. Ajinomoto
expects a group net loss of 11 billion yen in the year compared
to 17.658 billion yen profit last year.

Consolidated pretax profit is estimated at 42 billion yen, up 1.9
percent from the year before, on group sales of 875 billion yen,
up 5.5 percent.

The move will leave the major Japanese seasoning maker with an
extraordinary loss of 9.8 billion yen in the current business
year ending March 31, Ajinomoto said.

A.I.F. Investment, created in 1984 for asset management in bonds,
has largely completed its mission now that changes have occurred
in Japan's tax haven laws and in the Ajinomoto group's funding
strategy, Ajinomoto said.


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

BANGKOK LAND:  Revamps Housing Project
--------------------------------------
Bangkok Land will revamp its multi-billion baht Muang Thong
housing project by drawing the needed US$15 million a year from
Asia Land Fund, purchaser of the Muang Thong in 1999.

Substantial sales of land and town houses to a number of property
funds will help improve the company's operations and repayment to
its creditors, Business Day Thailand reported on Tuesday.

Long-tern debt was reduced to only seven to eight billion baht.


NAKORNTHAI STRIP MILL:  Creditors' Vote on Plan Postponed
---------------------------------------------------------
The creditors of Nakornthai Strip Mill have a few extra days to
wait before voting on a revised rehabilitations plan. A creditor
requested the delay from January 26 to January 30 to allow for
major amendments to the plan.

The Central Bankruptcy Court acted on the letter dated January 26
the request of Mr. Wikorm Vajragupta, Ramkhamhaeng Planner
Company Limitedas the planner of Nakornthai Strip Mill Public
Company Limited.

To recall, the Industrial Finance Corporation of Thailand (IFCT),
a major creditor, and Bay Harbour Management Llc., representing
bondholders, asked Ramkamhaen Planner to draft a revised plan.

Punjaporn Kosolkitiwong, attorney for Dej-Udom & Associates
representing Bay Harbour, said the firm was designated by holders
of debentures worth Bt15 billion to negotiate with receivership
officials. Punjaporn said debentures account for 50 percent of
debts but a receivership official claims it is only 40 percent.

Debenture holders propose that the agreement be signed within six
months after the court endorses the plan. Within two months after
the court's endorsement, the debtor must be able to demonstrate
that it has complied with the plan.

Sawasdi Horrungruang, chairman of Nakornthai Strip Mill, has
given personal guarantees for loans worth about Bt70 billion.



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,
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DC USA. Lexy Mueller, Managing Editor, James Philip P.
Jover and Maria Vyrna Nineza, Editors.

Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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