TCRAP_Public/010220.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

                 Tuesday, February 20, 2001, Vol. 4, No. 35

                               Headlines


A U S T R A L I A

GAMES `R' US:  Goes Into Administration
WOODLAWN:  Fails to Pay A$6.5M in Entitlements


C H I N A  &  H O N G  K O N G

GUANDONG INVESTMENTS:  Sells GD Building for HK$31.48M
WAH LEE:  Fails to Pay HK$55M Bonds


I N D O N E S I A

PT PERMADANI:  Restructures US$161M Debt
PT TEXMACO JAYA:  Merges with Sister Company
PT VOKSEL ELECTRIC:  FSPC Approves Debt Restructuring
SALIM GROUP:  Palm Oil Plantation Sales Cancelled


J A P A N

CHIYODA LIFE:  Sells HQ for 10B Yen
FREEASIA MACROSS:  Debt Waiver Status Uncertain


K O R E A

DAEHAN FIRE:  FSS Due Diligence Audit Nears Completion
DONG-AH:  Accused of Tampering with Records


M A L A Y S I A

MALAYSIAN AIR LINES:  Expects RM569.1M Net Loss


P H I L I P P I N E S

EXTELCOM:  Resumes Talks with Creditors
NAPOCOR:  Fuel Tax Exemption Revoked


S I N G A P O R E

CAPITALAND Ltd.:  Sells Stake in Hospital


T H A I L A N D

NAKORNTHAI:  Rejects Restructuring Plan
THAI PETROCHEMICAL:  Planner Proceeds Shares Issuance


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

GAMES `R' US:  Goes Into Administration
---------------------------------------
Games `R' Us, a software and computer games retailer, was placed
under administration on February 13 after it failed in its United
States joint venture, leaving A$2 million of debt owed to its
creditors, the West Australian reported on Wednesday.

The company's shares were suspended from trading on January 15.
John Lord, of Lord & Brown, and Mark Reilly, of Featherby Reilly,
were appointed administrators of the firm.

The firm's 12 stores and seven franchised stores are uncertain of
their future.
  
Mathew Edwards, the company's founder and chief executive, has
been replaced by John McGurck, a former Bank of Western Australia
director.


WOODLAWN:  Fails to Pay A$6.5M in Entitlements
----------------------------------------------
The retrenched workers of Woodlawn, an Australian mining company,
can only expect to receive A$3 million in entitlements this year
after creditors decided on February 13 not to close the firm, the
Canberra Times reported on Wednesday.

Nick Brooke, the PricewaterhouseCoopers appointed administrator,
said the firm has a total debt of A$27 million -- A$12.3 million
to secured creditors and A$6.5 million to the employees.

Peter Hook, an ex-Woodlawn employee, said the more than 160
retrenched employees are glad that the company has not wound-up
operations even though they won't receive the full amount that
they have demanded in outstanding employee entitlements.

Woodlawn's Goulburn mine was being pursued by Collex Waste
Management for a 50-year lease and a 500,000 tonnage limit
annually. The request was reduced to a 20-year lease and 400,000
annual tonnage limit with a decrease of 10 percent during the
succeeding five years.


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

GUANDONG INVESTMENTS:  Sells GD Building for HK$31.48M
------------------------------------------------------
Guandong Investments (GDI), an infrastructure and investment
company, will sell its share in GD Building for HK$3 billion in
line with its plan to reduce its gearing ratio, according to the
Friday issue of the South China Morning Post.

The buyer is Hi Sun, a British Virgin Island company owned by Kui
Man-chun and Li Wenjin.

Li Wenyue, Guandong Investments managing director, said the sale
represents a 57.16 percent share in the building, which is one of
the 20 loss-making and non-core businesses scheduled to be
unloaded in the next five years.

He said GDI hoped to raise HK$3 billion from the sale of non-core
assets to help repay debt.

A condition of the sale includes the waiver of intra-group
indebtedness of about HK$209 million owed to GDI by GD Building.

Last year, GD Building registered a net loss of HK$56.35 million
with HK$316.36 million in debts.


WAH LEE:  Fails to Pay HK$55M Bonds
-----------------------------------
Wah Lee Resources Holdings Ltd., an investment holding company,
failed to pay Way Forward Consultants Ltd. the principal of its
series B HK$55 million guaranteed secured zero coupon convertible
bonds on January 29, Quamnet News Service reported on Friday.

Yeung Ming-kwong, chief executive of Wah Lee Resources Holdings
Ltd., said they are negotiating with the bondholders for
restructuring the repayment terms as it is at present searching
for new investors.

Wah Lee shares, suspended since Feb. 5, will remain suspended
pending further announcements. They last traded at 2.8 HK cents.


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

PT PERMADANI:  Restructures US$161M Debt
----------------------------------------
PT Permadani Khatulistiwa Nusantara (PKN), a hotel developer,
will restructure its US$161.5 million debt owed to the Indonesian
Bank Restructuring Agency (IBRA), the Jakarta Post reported on
Saturday.

PT Permadani owns Regent Hotel, a Jakarta five-star hotel.

The Financial Sector Policy Committee (FSPC), which approved the
debt restructuring, said IBRA would be given control of a 51
percent stake in the firm.

In return, its debts will be paid in three tranches including
cash payment, debt-to-equity arrangement, and secured
convertible bonds mechanism.

PKN initially owed debts to local banks that were then turned
over to IBRA.


PT TEXMACO JAYA:  Merges with Sister Company
--------------------------------------------
PT Texmaco Jaya, a textile producer, plans to merge with a sister
company in the Texmaco group, Polysindo Eka Perkasa. PT Texmaco
Jaya will then combine and restructure debt by securing its bonds
and debt-to-equity swap as proposed by Financial Sector Policy
Committee (FSPC) and Jakarta Initiative Task Force (JITF).

The exact amount of debt is still not known but the FSPC said it
had agreed in principle with secured creditors to restructure
$1.3 billion in debt, the Jakarta Post reported on Saturday.

The JITF is a government-sponsored agency formed in 1998 to help
accelerate the debt restructuring of the country's private sector
by playing a mediator role, while the FSPC is a group of several
senior economic ministers that oversees the country's major bank
to help manage corporate restructuring programs.


PT VOKSEL ELECTRIC:  FSPC Approves Debt Restructuring
-----------------------------------------------------
The Financial Sector Policy Committee (FSPC) approved the debt
restructuring Plan of PT Voksel Electric on February 9, as
proposed by the Jakarta Initiative Task Force (JITF).

FSPC said debt payments for PT Voksel would be divided into two
installments on its US$8.6 million debt. The first installment of
US$4.3 million will be paid up to 2008. The second will involve
the issuance of convertible and straight bonds, according to the
Saturday edition of the Jakarta Post.

The JITF is a government-sponsored agency formed in 1998 to help
accelerate the debt restructuring of the country's private sector
by playing a mediator role.

"These restructurings mediated by the JITF represent a
significant contribution to meeting the government's
restructuring targets for 2001," the FSPC said.


SALIM GROUP:  Palm Oil Plantation Sales Cancelled
-------------------------------------------------
The sale of a 250,000-hectare palm oil plantation on Sumatra
seized by the Indonesia Bank Restructuring Agency (IBRA) from the
Salim Group to Kumpulan Gunthrie Bhd. for US$350 million was
cancelled because of objections from Parliament.

Prijadi Praptosuhardojo, Indonesian Finance Minister, said they
are still considering the issues before making a final decision,
Bloomberg reported on Thursday.

The palm oil plantation was surrendered to IBRA in exchange for a
53 trillion rupiah loan belonging to PT Bank Central Asia, part
of the Salim group.

Residents of Sumatra want the government to scrap the land sale
to a foreign company because it is illegal. Members of
Parliament, meanwhile, are pushing the government to find a
better solution and not proceed with the sale.

This is in contrast with the position taken by Economics Minister
Rizal Ramli and IBRA's head of asset management division, Dasa
Sutantio, in favor of the sale since there was already a signing
of a purchase agreement in December. The local concerns will
however be taken into account.


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

CHIYODA LIFE:  Sells HQ for 10B Yen
-----------------------------------
Chiyoda Mutal Life Insurance Co. plans to sell its headquarters
in Meguro Ward, Tokyo for 10 billion yen, according to
Wednesday's Jiji Press English News Service.

The proceeds will be used to settle the failed insurance
company's debt of 500 billion yen.

The local government of Meguro Ward has an interest in bidding on
the building to transform it into a new town hall. If the deal is
not realized, the administrator will again look for an interested
buyer.


FREEASIA MACROSS:  Debt Waiver Status Uncertain
-----------------------------------------------
Freesia Macross Corp., a plastic extruding machinery
manufacturer, has not received a reply from its major creditors
about its debt waiver application, according to Wednesday's Jiji
Press English News Service.

A Wright Investors' Service report says at the end of 2000,
Freesia Macross had negative working capital, as current
liabilities were 10.87 billion yen while total current assets
were only 2.86 billion yen.

The company has reported losses before extraordinary items for
each of the past three years. 1998 was the last year the company
reported profits from ordinary operations, when it reported 67.25
million yen in earnings.

The Tokyo Stock Exchange is threatening to delist the company if
it fails to improve its financial standing by the end of March
2001.


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

DAEHAN FIRE:  FSS Due Diligence Audit Nears Completion
------------------------------------------------------
The Financial Supervisory Service (FSS) says it is nearly
finished with a due-diligence audit of Daehan Fire & Marine
Insurance Co., the Korea Herald reported on Thursday.

The FSS has threatened to categorize Daehan Fire as a poorly
managed financial institution if the results of the due diligence
point to such a recommendation.

If liabilities exceed assets, Daehan will be declared insolvent
and ordered to submit final management rationalization plans to
the financial watchdog.


DONG-AH:  Accused of Tampering with Records
-------------------------------------------
The Financial Supervisory Service (FSS) is investigating Dong-Ah
Construction of trying to inflate its assets by 700 billion won
by tampering with its financial reports from 1988 to 1997,
according to the Thursday issue of the Digital Chosun.

Four partners are also threatening to take over its work in the
consortium handling the North Korean light-water nuclear reactor
construction project, Asia Pulse reported on Thursday.

The FSS meanwhile did not find any tampering in the financial
statement for 1994. Investigation is now centering on the year
1997.

The Korea Electric Power Corp. (KEPCO), the party that ordered
the project, said the three remaining firms should agree among
themselves how to divide the tasks for the nuclear reactor
project.

Hyundai Cosntruction's share will increase from 50 to 62.5
percent. Daewoo Construction's work will increase from 15 to
18.25 percent and Hanjung from 15 to 18.5 percent. Dong-Ah
Construction's share will remain at 20 percent. The total
construction cost will be 934 billion won (US$746 million.)


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

MALAYSIAN AIR LINES:  Expects RM569.1M Net Loss
-----------------------------------------------
Malaysian Airlines (MAS) is expecting a net loss of RM569.1
million for the first quarter of this year and is not expected to
turn a profit until 2003, the Business Times reported on Friday.

This is the fourth consecutive year of losses, with debt
amounting to US$2.6 billion.

MAS is reportedly in talks with a foreign operator that insists
the company reduce its 21,000 workforce and rationalize its
operations.

Negotiations are also underway with Petronas to help pay employee
salaries. MAS depends upon Petronas for its fuel requirement
accounting for 28 percent. The government is asking Petronas a 10
percent discount on jet fuel which accounts for 16 percent of its
total operating costs.

Azizan Zainul Abidin has succeeded Tajudin Ramli as MAS non-
executive chairman. Tajudin has sold his 29 percent stake to the
government for RM1.79 billion.


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

EXTELCOM:  Resumes Talks with Creditors
---------------------------------------
Express Telecommunications Philippines Inc. (Extelcom), a
telecommunications company, is looking to restart negotiations
with creditors on its P2 billion debt, according to the Friday
issue of the Philippine Daily Inquirer.

Advinculo Quiblat, Extelcom president, said negotiations stopped
last year because of the country's volatile political situation,
fluctuating interest rates and devaluation of the peso.

Bayan Telecommunications Inc. (BayanTel) will sell its 40 percent
share in Extelcom after it finalizes a deal with creditors
because it is also undergoing a debt-restructuring process.

Quiblat said the company would use new investments to convert the
firm to digital operations in place of the older analog system.
It has a subscriber base of 200,000.


NAPOCOR:  Fuel Tax Exemption Revoked
------------------------------------    
The Bureau of Internal Revenue (BIR) has suspended bidding on
P10.9 billion worth of fuel supply contracts for state-run
National Power Corp. (Napocor) after its tax-exemption privilege
was revoked, the Philippine Daily Inquirer reported on Friday.

The new Macapagal wants to remove Napocor's tax-exemption
privilege to cope with a deficit of P200 billion. Napocor would
save P300 million to P600 million annually with these exemptions.

The deregulation law states that "as long as Napocor enjoys
exemptions from taxes and duties on petroleum products purchased
for power generation, the exemption shall apply to purchases
through a local refiner and to the importation of fuel oil and
diesel."

The government has slapped a 3-percent tariff equivalent to 29 to
30 centavos a liter on imported crude and refined petroleum. It
also imposes a specific tax of about 63 centavos a liter for
every liter of diesel sold.


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

CAPITALAND Ltd.:  Sells Stake in Hospital
----------------------------------------
CapitaLand Ltd., Southeast Asia's largest developer, will sell
its 16.7 percent stake in hospital operator Parkway Holdings Ltd.
worth S$180 million to concentrate on its property-related
business. It wrote off S$190 million in losses for Parkway last
year, Bloomberg reported on Friday.

Julie Ong, deputy director of corporate communications at
CapitaLand, said Salomon Smith Barney was appointed as adviser
for the sale. It is hoped that the appointment of an adviser will
reinforce the company's plan to dispose of its healthcare-related
business.

The developer reported a 43 percent profit decline in 2000 to
S$105.7 million. CapitaLand expects to report a 20 to 25 percent
increase in earnings before tax and interest for this year, which
will be helped by the divestment of S$500 million to S$1 billion
in assets.


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

NAKORNTHAI:  Rejects Restructuring Plan
---------------------------------------
The planner for Nakornthai Strip Mill will submit a revised
restructuring plan after being rejected by creditors on February
20, AFX reported on Wednesday. Ramkhamhaeng Planner refused to
accept the three revisions proposed by Bay Harbour, representing
bondholders.

Under the Bankruptcy Law, the new planner must submit a
restructuring plan to creditors within 45 days of being
appointed, with an extension of up to 30 days.

Nakornthai Strip Mill's total debt amounts to Bt35 billion, with
Bt32 billion owed to financial institutions. Nakornthai owes the
Industrial Finance Corporation of Thailand Bt5 billion.


THAI PETROCHEMICAL:  Planner Proceeds Shares Issuance
-----------------------------------------------------
Thai Petrochemical Industry (TPI) can proceed with the issuance
of new shares to more than 100 creditors for US$3.8 billion in
defaulted loans, after the Central Bankruptcy Court approved a
takeover by creditors, according to Thursday's Business Day
Thailand.

A spokesman for Effective Planners said the debt-for-equity swap
would advance the plan to take control of 75 percent of the
company.

Meanwhile, Bangkok Bank, International Finance Corp.,
Kreditanstalt Fuer Wiederaufbau and other creditors are still
contesting at least nine suits filed by Prachai Leophairatana,
the founder and former chief executive of the company.

He says the court ruling has dealt him a setback, reducing his
holding from 60 to 15 percent after the implementation of the
swap.



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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