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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

                 Tuesday, February 6, 2001, Vol. 4, No. 26

                               Headlines


A U S T R A L I A

CENTAUR MINING:  Buys Time to Raise Needed Capital
MORWELL:  Closes Sawmill


C H I N A  &  H O N G  K O N G

ETANG.COM:  Plans to Lay Off Workers
ICBC (ASIA):  ICBC Postpones HK$12B Asset Injection
PACIFIC CENTURY:  London Employees Fired


I N D O N E S I A

KIA:  Negotiates US$100M Debt


J A P A N

DAIKO:  Files for Protection from Creditors
DAISUE:  Court Approves Assets Liquidation


K O R E A

HANKOOK TRUST:  Fails to Honor 83.8B Won Checks
HYUNDAI ELECTRONICS:  Settles Patent Lawsuits


M A L A Y S I A

RHB BANK:  Gov't. Rejects RM1.38B Share Sale
TECHNO ASIA:  Administrator Appointed


P H I L I P P I N E S

PHIL. NATIONAL BANK: Government Shelves Rehab Plan
PILIPINO TELEPHONE:  Recovery in Three Years


S I N G A P O R E

ASIA PULP:  Seeks US Debt Restructuring Experts' Help


T H A I L A N D

TPI POLENE:  Creditors Approve Restructuring Plan
THAI PETROCHEMICAL: Petition Filed Anew


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

CENTAUR MINING:  Buys Time to Raise Needed Capital
--------------------------------------------------
Centaur Mining & Exploration has asked bankers Chase Manhattan
and Westpac to defer commitments due on $US10.4 million of
currency hedging and 16,000 ounces of gold hedging into February,
to avoid crystallizing the losses which would have severely
constrained the company's cash flow.

The Sydney Morning Herald reported Friday that Centaur would
continue to monitor its liquidity position and study proposals
such as the sale of "core and non-core" assets and the
introduction of a potential partner for the Cawse nickel project.

"The company expects these alternative financial proposals to be
resolved within the next few months," said Centaur managing
director Joseph Gutnick.

Centaur has already been granted a 60-day extension to come up
with the rest of the $22.7 million needed to replenish the debt
reserve fund for payments to the US noteholders.


MORWELL:  Closes Sawmill
------------------------
Morwell, a sawmill owned by Thomas P. Clark, will dismiss 110
workers at the as part of liquidation process in January. Clark
has refused to bailout the company, the Herald Sun reported on
Thursday.

The Warburton mill is much older and less viable; the chances of
finding a buyer for it are very slim because the Australian
building industry is in recession.


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

ETANG.COM:  Plans to Lay Off Workers
------------------------------------
Etang.com, a fashion and food Web site in Shanghai, may be forced
to lay off 80 workers, according to the Friday issue of CN-Market
News.

Many of the workers will be transferred to other divisions while
others will have to leave. The editorial, marketing and
administration departments will be affected.


ICBC (ASIA):  ICBC Postpones HK$12B Asset Injection
---------------------------------------------------
Industrial and Commercial Bank of China (ICBC) will postpone an
injection of HK$12 billion worth of assets into ICBC (Asia) Ltd.

The bank's Hong Kong business is now split between ICBC (Asia)
and its own branches. The parent is considering assigning some of
the assets to its Hong Kong branches, according to the Friday
issue of Quamnet News.

Beijing-based ICBC currently owns 70.5 percent of ICBC (Asia).


PACIFIC CENTURY:  London Employees Fired
----------------------------------------
Pacific Century Cyberworks Ltd., an Internet service and phone
company, will fire 30 of its 50 employees in Chiswick, West
London, because it wants to cut spending in Internet
entertainment, Bloomberg reported on Friday.

The London office provides programming and other services to
Network of the World, an interactive Web entertainment service.

Pacific Century wanted to limit its annual investment in
business-to-consumer operations to $200 million.


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

KIA:  Negotiates US$100M Debt
------------------------------
Kia, a ceramics producer, is negotiating with creditors to
restructure US$100 million in debts, Asia Pulse reported on
Thursday.

Budi Hadidaya, Kia president, said 10 percent of the debt is owed
to the Indonesian Bank Restructuring Agency (IBRA); the other
creditors are foreign bank syndicates. Hadidaya said the
restructuring is expected to finish by the end of the first
quarter of this year.

Last year, the company posted a loss of Rp538 billion (US$60
million) including Rp444 billion in foreign exchange loss.


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

DAIKO:  Files for Protection from Creditors
-------------------------------------------
Daiko Mortgage Co., a Kansai Kogin credit cooperative affiliate,
filed for court protection before Osaka District Court from 138.9
billion yen in liabilities from creditors under the civil
rehabilitation law, according to the Tuesday edition of Jiji
Press English News Service.

The company, which was set up in 1986, was enjoying a lending
balance of 100 billion yen in 1990 but was affected when Kansai
Kogin was declared bankrupt last December 16.

Daiko Mortgage suffered a recurring loss of some 2 billion yen up
to June of last year because of the decline in the value of
properties that were given as collateral.


DAISUE:  Court Approves Assets Liquidation
------------------------------------------
The court has approved the liquidation of two Daisue Construction
Co. subsidiaries as part of the restructuring program it started
in September of last year, a Tuesday report by Jiji Press English
News Service.

The two Daisue companies, makers of prefabricated houses and a
company that leases building materials, will be disposed to
reduce the parent company's capital. Creditor banks will grant a
debt waiver.

They have combined liabilities of 10.17 billion yen.


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

HANKOOK TRUST:  Fails to Honor 83.8B Won Checks
-----------------------------------------------
Hankook Real Estate Trust (HRET), a state-invested property
development firm, was declared bankrupt after failing to honor
W83.8 billion in checks belonging to creditor banks.

HRET is currently engaged in 65 apartment complex construction
projects nationwide and the completion of about 18,300 housing
units currently under construction are expected to be
jeopardized, the Digital Chosun reported on Friday.

Since HRET was first established in 1991 through the investment
of the state-run Korea Appraisal Board, several major commercial
banks have also invested into the developer.

HRET was on the verge of bankruptcy in October 1999 due to
sluggishness in the construction market combined with
indiscriminate expansion of its housing projects.


HYUNDAI ELECTRONICS:  Settles Patent Lawsuits
---------------------------------------------
Hyundai Electronics Industries Co. (HEI) has settled pending
patent lawsuits against German chipmaker Infineon AG, according
to the Thursday issue of the Korea Herald. The two sides also
signed a long-term business partnership, including exchanging
licenses on their respective global patent portfolios, HEI said.

In March, the Korean chipmaker filed lawsuits against Infineon
over patent infringement on circuit design and processing
technologies for memory chips, countering similar suits filed by
Infenion in 1997 against LG Semicon, which HEI absorbed in 1999.

Under the settlement, the two firms have withdrawn all their
legal actions, and will cooperate in the non-memory semiconductor
business, HEI said.

"Under the agreement HEI and Infeneon will recognize the strength
of both companies' patent portfolios and their technical
leadership in the semiconductor industry and will work together
to produce the world-class integrated circuit products," said
Park Sang-ho, president of HEI's semiconductor and LCD unit.


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

RHB BANK:  Gov't. Rejects RM1.38B Share Sale
--------------------------------------------
Plans for RHB Capital to buy preference shares in unit RHB Bank
for RM1.38 billion in cash has been rejected. The shares belong
to Danamodal, the government recapitalization agency, which it
acquired for an RM1.0 billion capital injection during the Asian
crisis, the Channel News Asia reported on Monday.

RHB Capital said the move would have resulted in the government
agency gaining a gross profit of RM380 million on its investment.

Due to the rejection of its plan, RHB Capital will not proceed
with a RM650.0 million 10-year bond issue to partially fund the
purchase of shares from Danamodal, RHB Capital said in a
statement to the Kuala Lumpur Stock Exchange.

Another RM730.0 million that will be raised from RHB Capital's
proposed restructuring plan will now be used to reduce the
group's existing borrowings, the statement added.


TECHNO ASIA:  Administrator Appointed
--------------------------------------
A special administrator was appointed for Techno Asia Holdings
Bhd. (a palm oil processing firm) by Pengurusan Danaharta
Nasional Bhd, according to the Monday issue of the Edge.

Lim Tian Huat and Chew Cheng Leong of Arthur Andersen & Co will
assume control of the assets and affairs of the company.

Techno Asia is an investment holding company, and together with
its subsidiaries, is involved in property development, investment
holding, oil palm plantations, and power generation and hotel
operations.

A 12-month moratorium will take effect from the date of the
appointment, during which the special administrators will prepare
a workout proposal.


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

PHIL. NATIONAL BANK: Government Shelves Rehab Plan
--------------------------------------------------
The rehabilitation plan for the Philippine National Bank (PNB)
will be shelved by The Bangko Sentral (Central Bank) and the
Department of Finance (DoF), allowing the new administration to
re-evaluate its terms.

Alberto Romulo, the new finance secretary, said, "We are just
saying the law says we should pursue all these things and we are
doing it", according to the Monday edition of Business World.

Tycoon Lucio C. Tan, who controls 70 percent of PNB, is a close
friend of ousted President Joseph Estrada.

The terms of the loan will be reviewed and if necessary will
adopt new measures like immediate repayment.

For his part, Gov. Rafael Buenaventure (Bangko Sentral) said he
will give the DOF a free hand in reviewing the rehabilitation
plan and recommend amendments in accordance with the principle
earlier approved by the Monetary Board.

PNB's rehabilitation plan includes details on reduction of bad
loans, sale of foreclosed assets, planned expenditure cuts, the
rationalization of the bank's operations and tightening
previously loose credit controls.

Still, Felipe L. Miranda, PNB president and chief executive
officer said, "As far as we're concerned, the bank's
rehabilitation plan is in progress."

The Bangko Sentral reportedly cannot proceed with the
rehabilitation plan because the loan deals with PNB and PDIC are
integrally linked and are still being reviewed by the DOF.


PILIPINO TELEPHONE:  Recovery in Three Years
--------------------------------------------
Pilipino telephone Corp. (Piltel), a cellular mobile operator,
will have a positive cash flow by the end of the year and back in
the black in three years, the Business World reported on Monday.

Napoleon L. Nazareno, Piltel president and chief executive
officer, said the company will attain break even cash flow
because debt restructuring will bring down the interest cost on
loans and enhance subscriber growth.

Piltel has about 34.9 billion Philippine pesos ($709.13 million
at PhP49.215=$1) in debts to banks, bondholders and suppliers,
including Japanese firm Marubeni Corp. The cellular firm had been
negotiating for a restructuring of its obligations since early
1998.

Mr. Nazareno said he expects to finalize the debt-restructuring
plan with creditors by September at the latest or by mid-this
year at the earliest.

Piltel was able to convince 96 percent of bondholders to accept
its debt-restructuring plan.

"The next step would be the necessary documentations," said
Nazareno. "The first would be (with) creditors and PLDT on the
issuance of the (PLDT's) letter of support that was part of the
MRA with the banks and SEC (Securities and Exchange Commission)
approvals, which we estimate would take about three to six
months."


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

ASIA PULP:  Seeks US Debt Restructuring Experts' Help
-----------------------------------------------------
Asia Pulp & Paper Co., one of the biggest emerging-markets
borrowers, has approached debt-restructuring experts at U.S.
investment bank Credit Suisse First Boston to work
on the restructuring of a major portion of APP's $9 to $10
billion in debts, according to Friday's Asian Wall Street
Journal.

The APP debt restructuring involves bondholders for several
different bonds that have been issued over the years by APP and
its various subsidiaries, as well as banks, export credit
agencies and suppliers.

In September of last year APP launched a bond-exchange offer
aimed at exchanging some $2.5 to $3 billion of shorter-dated
bonds for a mix of cash and long-dated bonds. It appointed J.P.
Morgan & Co. as the global coordinator for the exchange offer,
and appointed Credit Suisse First Boston (CSFB), Goldman Sachs
(Asia) LLC and J.P. Morgan as the joint book runners.

Most of APP's assets are in Indonesia, China and India. Its two
listed subsidiaries, PT Pabrik Kertas Tjiwi Kimia and PT Indah
Kiat Pulp & Paper, have both issued bonds over the past few
years. It wasn't clear on Thursday whether Tjiwi Kimia
bondholders had received their $43 million coupon payment on
time.

Ratings agency Moody's said it is "concerned that APP Group may
have difficulty in generating sufficient liquidity to meet the
substantial debt-repayment obligations coming due in
the next two years."


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

TPI POLENE:  Creditors Approve Restructuring Plan
-------------------------------------------------
Creditors of TPI Polene (TPIPL) have approved a restructuring
plan that calls for a debt-to-equity conversion, capital increase
and rescheduling of debt repayments in eight years for its
ballooning Bt45 billion in debt.

Orapin Leophairatana, TPIPL senior executive vice-president, said
the plan calls for a capital increase from Bt180 million to Bt270
million while creditors will agree to a debt-to-equity exchange
involving Bt130 million, the South China Morning Post reported on
Friday. The present shareholders' ownership in the company will
be diluted by 80 percent from 30 percent to 20 percent.

"The firm would only pay interest on capital for the first two
years, and begin repaying capital from late-2002," said Orapin.

The company hopes to raise Bt180 million for debt buy-back at a
discounted price reducing the debts to Bt35.3 billion. Throughout
the eight-year duration of the restructuring plan, the company
hopes to maintain its capital to Bt1.6 billion.

In the first nine months last year TPIPL posted Bt4.17 billion
compared to Bt1.79 billion in 1999.


THAI PETROCHEMICAL: Petition Filed Anew
---------------------------------------
Thai Petrochemical Industry Plc. (TPI) will ask the Supreme Court
again to temporarily halt a rehabilitation plan while it awaits a
decision on its earlier petition to disqualify Effective Planners
Ltd. as TPI's plan administrator, according to the Tuesday
edition of the World Reporter.

According to Chavalit Uttasart of International Legal Counsellors
Thailand Ltd, who acts as TPI's legal advisor, TPI is trying to
prevent complications pending a final ruling by the Supreme
Court. TPI's new petition is not requesting for an absolute halt
of the plan's implementation, he said, adding the petition is
also not asking for a halt in normal operations. "The petition
only requests for a delay in the proposed capital increase, in
the amendment of the company's prospectus and in the sale of non-
core assets," he said.

TPI's plan administrator, Effective Planners Ltd, had earlier
asked for court approval for TPI's capital increase. The court
will hear the petition on Feb 9. Chavalit said TPI also filed
another petition on January 22 seeking to remove Effective
Planners Ltd as the company's plan administrator, which the court
is set to hear on February 15.

According to the petition, TPI said Effective Planners Ltd's
business operations violate the regulations of the Commerce
ministry.



S U B S C R I P T I O N  I N F O R M A T I O N

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