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                        A S I A   P A C I F I C

                 Tuesday, February 13, 2001, Vol. 4, No. 31

                               Headlines


A U S T R A L I A

GLOBAL INITIATIVES:  Goes into Voluntary Liquidation
GRUBB FINANCE:  Partners Sued for Fraud
SAUSAGE:  Pulls Out From Exchange Listing


C H I N A  &  H O N G  K O N G

TECHPACIFIC.COM:  Buys Spike Cyberworks
ZHENGZHOU BAIWEN:  Faces Delisting


I N D O N E S I A

INDOMARET:  Three Dozen Investors Indicate Interest


J A P A N

KUMAGAI GUMI:  Creditors Forgive 430B Yen Debts
ONWARD KASHIYAMA:  Posts 6.4B Yen Net Loss
SHIRATSUYU SANGYO:  Files for Court Protection


K O R E A

DAEWOO MOTOR:  Pressured to Lay Off Workers
HANKOOK TRUST: Creditors Examine Status
SAMSHIN LIFE:  Dongbu Group Interested to Take Over Firm


M A L A Y S I A

GADEK:  Creditors Study Legal Action
NALURI:  Naluri Shifts Investments


P H I L I P P I N E S

NATIONAL POWER CORP:  Power Bill Jeopardizes Loans
URBAN BANK:  Founder Implicated on Huge Withdrawals


S I N G A P O R E

NOBEL DESIGN:  Expected to Turn Losses


T H A I L A N D

NATIONAL FERTILIZER:  Needs Bt2B From Government
NTS STEEL GROUP:  Court Orders NTS to Submit Rehabilitation Plan
TPI POLENE:  Court OKs Rehabilitation Plan


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

GLOBAL INITIATIVES:  Goes into Voluntary Liquidation
----------------------------------------------------
Global Initiatives, an Australian software company, was sold to
Reply2 for $A10 million after it went into voluntary liquidation
in last December.

Its main asset was the exclusive reseller rights to US-listed
Critical path software, according to the Thursday edition of the
Australian Financial Review. The reseller rights' valuation was
reportedly based on unrealistic revenues, which the company failed
to achieve.

On January 18, Critical Path admitted that they provided false
information, causing the suspension.


GRUBB FINANCE:  Partners Sued for Fraud
---------------------------------------
Graeme Grubb, former Grubb Finance executive, the firm's auditors
and St. George Bank are accused of defrauding the company,
according to the Thursday issue of the West Australian.

Mark Conlan, Grubb liquidator, had already filed a $14 million
claim against the partners while the St. George Bank was sued for
$13 million claims.

The former executive is now facing a 10 year prison sentence after
pleading guilty to defrauding 649 investors of $A5.2 million in
1999.


SAUSAGE:  Pulls Out From Exchange Listing
-----------------------------------------
Sausage, an IT and software company, will have its listing removed
from the Australian Stock Exchange after setbacks for the past 12
months, the Sydney Morning Herald reported on Monday.

Lloyd Roberts, new chief executive of Sausage, said the firm
posted a loss of $3.3 million last year. He recently moved to
clean up Sausage's balance sheet, writing off $190 million in
goodwill and other non-performing assets, the majority of which
related to the acquisition of SMS Consulting Group.

The writedown was preceded by a comprehensive overhaul, including
further integration of the eight companies that make up the
Sausage group, rationalising offices, axing sales staff and taking
on new management. Roberts has not ruled out making further
acquisitions this year. "I am currently talking to three different
organisations in the IT sector."


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

TECHPACIFIC.COM:  Buys Spike Cyberworks
---------------------------------------  
Techpacific.com, a leading Internet-based company, has purchased a
51 percent stake in Spike Cyberworks in Australia. A first quarter
loss will be expected but there will be a possible improvement in
the second or third quarters, according to the Monday edition of
CN-Market News.

Spike CyberWorks recorded an unaudited loss of $53 million as at
December 2000.

Techpacific.com's develops and finances start-up and early-stage
technology ventures. Johnny Chan Kok-chung is chief executive
officer of techpacific.com Ltd.


ZHENGZHOU BAIWEN:  Faces Delisting
----------------------------------
Zhengzhou Baiwen, a Chinese retailer, may be delisted from the
Shanghai Stock Exchange by the Securities Regulatory Commission,
the Australian reported on Friday. The news comes after a series
of financial losses despite a rescue plan from the Sanlian Group.

Sanlian proposes to absorb Zhengzhou's 2.5 billion yuan debt in
exchange for a 50 percent stake. It will also obtain a backdoor
listing on the Shanghai bourse.

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.


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

INDOMARET:  Three Dozen Investors Indicate Interest
---------------------------------------------------
Thirty-six companies -- including PT Matahari Putra Prima Tbk, PT
Hero Supermarket and PT Tigaraksa Satria -- are interested to buy
a stake in PT Indomarco Prismatama (Indomaret).

Heru Adiningrat, PT Danareksa Sekuritas director and the former
underwriter of Indomaret, said Indomaret's floor price or IBRA's
51 percent stake is Rp153 billion, Bisnis Indonesia reported on
Monday. The floor price, he added, is the value Sampoerna bid when
it showed its interest to buy Indomaret from IBRA. Sampoerna at
the time bid for 100 percen of Indomaret for about Rp300 billion.

In view of the huge number of interested investors, the selling
price of Indomaret could be over Rp153 billion; the floor price
might increase to Rp170 billion to Rp200 billion.

All investors, he added, must sign a confidentiality agreement.


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

KUMAGAI GUMI:  Creditors Forgive 430B Yen Debts
-----------------------------------------------
Creditors have forgiven 430 billion yen in debts belonging to
Kumagai Gumi Co., an ailing construction firm, Jiji Press English
News Service reported on Friday.

Under the debt relief agreement, Sumitomo Bank will waive 259.54
billion yen in outstanding loans to Kumagai Gumi. The debt waivers
also include 103 billion yen by Shinsei Bank, 24.12 billion yen by
Sumitomo Trust and Banking Co. and 23.98 billion yen by Tokai
Bank.

The deal will have no bearing on Kumagai Gumi's earnings forecasts
for the current year ending March 31.


ONWARD KASHIYAMA:  Posts 6.4B Yen Net Loss
------------------------------------------
Onward Kashiyama, an apparel company, will have its first loss of
6.4 billion yen for the year ending February after having been
listed on the Tokyo Stock Exchange since 1960, Asia Pulse reported
on Friday.

The firm will also resolve the negative net worth of its nine
subsidiaries amounting to 23 billion yen.

The extraordinary loss will include 12.1 billion yen to increase
capital at six subsidiaries, including a men's wear dealer, and
4.9 billion yen to liquidate three subsidiaries, including a
resort firm.

The apparel firm will finish disposing of losses from its
subsidiaries and its pension fund will have a boost from
unrealized profits of 20 billion yen to cover a shortfall of 10
billion yen.


SHIRATSUYU SANGYO:  Files for Court Protection
----------------------------------------------
Shiratsuyu Sangyo, a subsidiary of meat wholesaler Starzen Co.,
will file for court protection from creditors who are laying
claims on B1.249 billion yen in liabilities. Starzen owns 18
percent of Shiratsuyu Sangyo, the Jiji Press English News Service
reported on Tuesday.

Shiratsuyu Sangyo will receive 10 million yen in fresh capital
from Starzen after it writes down its entire capital of 50 million
yen.

The embattled firm will receive a debt waiver of 571 million yen
out of 999 million yen in loans extended by Starzen.

In five years, it hopes to wipe out its 793 million yen in
cumulative losses.


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

DAEWOO MOTOR:  Pressured to Lay Off Workers
-------------------------------------------
Some 1,918 workers will be laid off in the next three weeks as
Daewoo Motor is under pressure to cut salaries and lay off
employees to reduce debts, according to the Monday issue of the
South China Morning Post.

Workers have threatened to stage daily rallies at its main plant
in western city of Inchon after being closed recently.

Jin Nyum, Korean Finance Minister, said the company has to
generate operating profits through drastic restructuring or else
it will not be granted receivership by the court.

Last month the labor-management battle intensified when sales
slumped and inventory levels rose to one month's orders despite a
steady injection of money from creditors to keep it afloat.

Once Korea's second-largest car company, Daewoo Motor has been
under a debt-restructuring program since its parent group
collapsed in August 1999 under US$80 billion of debt.


HANKOOK TRUST: Creditors Examine Status
---------------------------------------
Creditors of Hankook Real Estate Trust Co. (HRET) are studying a
proposal to suspend a debt workout program for HRET and refrain
from claiming their loans for six months while a special audit is
being conducted, according to the Saturday issue of the Korea
Herald.

Choo Won-tai, HRET managing director, said some creditors are
opposed to the idea but have agreed to meet to discuss the issue.

Meanwhile the Financial Supervisory Service (FSS) will closely
examine the firm's finances to find the reasons for HRET's
bankruptcy and who is responsible.

The state-owned real estate company went broke when it failed to
honor maturing debts of over 80 billion won.


SAMSHIN LIFE:  Dongbu Group Interested to Take Over Firm
--------------------------------------------------------
Dongbu Life Insurance Co. has signified interest in bidding for
Samhin Life Insurance in line with the Financial Supervisory
Service (FSS) drive to reduce the injection of public funds into
troubled companies.

Samhin Life now has three potential investors including Lucky Life
Insurance and Tong Yang Life Insurance, the Korea Herald reported
on Thursday.

The selling to new investors was in line with the financial
restructuring plan after it filed for bankruptcy.


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

GADEK:  Creditors Study Legal Action
------------------------------------
Gadek Bhd. failed to settle its commitments for the 729 ringgit
bond issue after a 14-day period set by local and foreign
creditors, according to the Friday issue of the Asian Wall Street
Journal.

The creditors may opt to seek legal action if Gadek fails to pay
by mid-March. They are growing impatient because of Gadek's
inability to comply with the conditions under the large bond issue
for the past year.

Commerce International Merchant Bankers, the security agent for
six banks that guaranteed the Gadek bond issue in 1996, had
continuously warned Gadek on the term of its bond guarantee
agreement.

The creditors are demanding the firm will put up collateral to
cover its bond obligations and raise funds to finance the
repayment of the securities. The first demand notice expired on
January 19.


NALURI:  Naluri Shifts Investments
----------------------------------
Naluri Bhd., an aviation firm, is shifting its investment in
Malaysian Airlines for its 20.09 percent stake to fast-growing
industries, according to the Monday edition of the Business Times.

Tajudin Ramli, Naluri owner, said the company has engaged two
investment banks to conduct studies on the identified industries.

The firm lost RM44.98 million in 1999 and RM316.3 million in 1998.  
With the sale of its stake in MAS for RM1.79 billion, it has
already received 10 percent of the proceeds while the balance will
be collected by February 23.

Tajudin said they are still discussing where to invest the money.
Investing in fast-growing industries, he said, is one of the
options because of its potential for future revenues.

Last month, the Securities Commission had asked Naluri to submit a
business plan.

The plan calls for Naluri to repay its existing bank borrowings
plus interest of RM927 million, leaving the company with a RM864
million cash pile.


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

NATIONAL POWER CORP:  Power Bill Jeopardizes Loans
--------------------------------------------------
The Asian Development Bank (ADB) has delayed the release of loans
to National Power Corp. (Napocor) because a power bill that would
have restructured the local energy sector has failed to pass.

Gunther Hecker, ADB country director, said in a letter to the
Department of Finance that the ADB decided to suspend all
financial assistance to Napocor, according to the Monday edition
of the Philippine Daily Inquirer.

Napocor has asked the ADB to again consider giving it loans even
if it has failed to post an 8-percent return-on-rate-base, a
measure of its profitability.

Antonio Ingco, Napocor vice president for finance, said this will
make it difficult for the firm to secure future borrowings.

The power bill will break up and privatize the power firm, which
lost P11.9 billion last year and owes creditors $6.5 billion.

"Napocor's financial picture would look better if the bill is
passed. If not, we would have to adjust our power rates," said
Ingco.

The new Philippine president, Gloria Macapagal-Arroyo, will let
the next Congress decide on the controversial power bill on June
30 when the session starts.


URBAN BANK:  Founder Implicated on Huge Withdrawals
---------------------------------------------------
Urban Bank founder and chairman, Arsenio M. Bartolome, was
actively involved in clearing several manager's checks, according
to the Monday edition of the Business World.

The article says two checks worth P143.7 million allegedly
belonging to deposed president Joseph Estrada were cleared one day
before the bank closed on April 25. Also included was the Bangko
Sentral Provident (BSP) Provident Fund worth P15 million, which
was moved into a money market placement.

Francisco Yap Jr., Philippine Clearing House Corp. president,
confirmed Mr. Bartolome's "unusual" visit to the clearinghouse in
Makati City the week Urban Bank was closed. Yap said Urban Bank
was given the opportunity to select checks for clearing and select
which ones to return. It did not have enough funds to cover all
the checks.

Teodoro C. Borlongan, Urban Bank president, defended Mr.
Bartolome's visit to the clearinghouse. Borlongan said Bartolome
was instructed by Bangko Sentral Governor Rafael Buenaventura to
make some transactions.

Last week, two lawmakers accused BSP chief Buenaventura of telling
Estrada to withdraw his money from Urban Bank since it was going
to close down. Makati Rep. Joker Arroyo and Misamis Oriental
(northern Mindanao) Rep. Oscar Moreno have claimed that
withdrawals from Urban Bank on April 24, 2000, were unusual,
especially since the PhP15-million manager's checks issued to the
BSP Provident Fund as well as the P147-million in checks allegedly
withdrawn by Estrada were cleared in a matter of hours.

They said this would not have happened without a BSP order. The
BSP Provident Fund is the retirement fund of BSP employees.


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

NOBEL DESIGN:  Expected to Turn Losses
-------------------------------------
Nobel Design Holdings Ltd., a Singapore furniture retailer, is
expected to post losses of not more than S$2.5 million for last
year.

The losses in the Internet businesses were mainly due to lower
than expected revenues and expenditures required for market
development, branding and infrastructure set-up costs, according
to CNet News on Monday.

Terence Goon, Nobel Design general manager/director, revealed that
the company had invested S$3 million in Buylateral.com and
home2be.com selling furniture and home accessories last year but
expects marginal loss for the group. They invested S$3 million in
Buylateral.com and home2be.com last year.

Nobel, which has operations in China, Brunei, Kuala Lumpur and
Jakarta, is expected to announce its full-year financial results
by the end of March.


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

NATIONAL FERTILIZER:  Needs Bt2B From Government
------------------------------------------------
National Fertilizer Plc. (NFC) is seeking Bt2 billion in
assistance from the Thai government, according to the Monday
edition of the Nation. Creditor banks are expected to extend
contingency credit for another three months to support NFC's
business in the next three months.

NFC chairman Cherdpong Siriwit said the firm had secured credit
from banks by selling advanced checks at a discounted rate for the
purchase of raw materials while waiting for the assistance from
the government.

Cherdpong said the government's aid will come through the state-
owned Bank for Agriculture and Agricultural Cooperatives, a
minority shareholder in NFC and will help the company in
recapitalization.

The creditor banks that have extended temporary credit to NFC are
Krung Thai Bank, Industrial Finance Corp of Thailand, Siam City
Bank, and Government Saving Bank.


NTS STEEL GROUP:  Court Orders NTS to Submit Rehabilitation Plan
----------------------------------------------------------------
The court has ordered the N.T.S. Steel Group Public Company Ltd.
to submit its business rehabilitation plan in three months' time.

Sawasdi Horrungruang, representing 331 Planner Company Ltd., wrote
to the Stock Exchange of Thailand on February 5.

N.T.S. Steel has total assets of Bt9.33 billion and liabilities of
Bt22.07 billion for the year ending last September. Its net loss
stood at Bt1.66 billion.

The company is a manufacturer and distributor of round and
deformed bars and wire rod for use in steel.


TPI POLENE:  Court OKs Rehabilitation Plan
------------------------------------------
The Central Bankruptcy Court of Thailand approved a rehabilitation
plan submitted by TPI Polene Plc.

Mrs. Orapin Leophairatana, TPI Polene Plc. Senior Executive Vice
President, wrote to the Stock Exchange of Thailand on February 9
that the court also approved the appointment of TPI Concrete Co.
Ltd as plan administrator.

On February 1 TPI Polene Plc. had approved to subject 98.35
percent of its debt exposure to the rehabilitation plan.

The plan calls for a capital increase from Bt180 million to Bt270
million while creditors have agreed to a debt-to-equity exchange
involving Bt130 million. 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.

The company hopes to raise Bt180 million for a debt buy-back at a
discounted price, thus 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.



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

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The TCR -- Asia Pacific subscription rate is $575 for 6
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For subscription information, contact Christopher Beard at
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