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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

         Monday, February 26, 2001, Vol. 4, No. 39

                          Headlines


A U S T R A L I A

BHP:  Asked to Reconsider Closure
LIBERTYONE:  To Be Liquidated
SOLUTION 6:  Reports A$122M Net Loss


C H I N A  &  H O N G  K O N G

GUANGDONG INVESTMENT:  Retains Control Over Subsidiaries


I N D O N E S I A

CP PRIMA:  Debt Restructuring Split
PT CHANDRA ASRI:  Marubeni Rejects Debt Restructuring Deal
PT KALBE FARMA:  Forecasts RP50B Net Loss


J A P A N

CHIYODA:  Chooses AIG for Takeover
DAIEI:  Closes Six Stores
KDDI:  Liquidates Telecom Units


K O R E A

DONG AH:  Might Abandon Libyan Project


M A L A Y S I A

IDRIS HYDRAULIC:  Banks Reject Supplemental Agreement
PARK MAY: Proposes Capital Reduction


P H I L I P P I N E S

PHIL. AIRLINES:  Posts P540M Q3 Loss
PHIL. NATIONAL BANK:  Tycoon Talks with Gov't. on Sale


T H A I L A N D

ITALIAN-THAI:  Sells Stake in Cement Firm
NAKORNTHAI:  Creditors Select New Planner


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

BHP:  Asked to Reconsider Closure
---------------------------------
Union, contractors and employees of BHP want the company to
reconsider a plan to close three coal mines because of a
favorable 8 percent price hike in its coking coal export
contracts. Two mines in Queensland and the Cordeaux colliery,
near Wollongong, marked for closure, are now viable, ABC News
Online reported on Wednesday.

Tony Maher, Construction, Forestry, Mining and Energy Union
representative, said the price could go higher if semi-hard coal
is upgraded to hard coking coal.

"BHP chief executive Paul Anderson is going to be touring the
Queensland coal mines this week and I believe he will get the
warm reception from the workforce if he opens the mines," said
Maher. "If he doesn't he will get a very cold shoulder from his
own workforce."

The firm is offering 3,000 Queensland coal miners a 13.5 percent
pay hike spread in a period of three years.


LIBERTYONE:  To Be Liquidated
-----------------------------
LibertyOne, an Australian Internet technology company, will be
placed into liquidation on March 1 after a creditors' meeting.
The firm has A$21 million claims, A$2.2 million for employees
benefits and debts to more than 150 unsecured creditors,
according to the Wednesday issue of the Sydney Morning Herald.

In a 54-page report to creditors, Ernst & Young court appointed
administrator John Gibbons said the 16,000 remaining shareholders
will still have a chance since there is an unnamed interested
investor.

The reported deficit varies from an estimated A$3 million by
LibertyOne director Nick Whitlam; iReality, a Hong Kong-based
firm, placed it at A$20 million.

Gibbons said they have recovered Zivo Web development company and
music retailer Satellite Music Australia.

The Satellite Music recovery was considered as the single largest
recovery for sale of LibertyOne's 50 percent stake for A$20,000
and loan repayment of A$2.23 million.

The value of the assets of Zivo, once valued at $565.9 million
and described as the crown jewel of LibertyOne, is still unknown.


SOLUTION 6:  Reports A$122M Net Loss
------------------------------------
Solution 6, an online software rental site has reported an
interim net loss of A$121.7 million, according to the Thursday
issue of Sydney Morning Herald.

The firm blamed the losses on its failure to sell software and IT
services online to small to medium enterprises (SMEs), who could
not afford to maintain their own IT departments. The SMEs were
apparently receptive but unwilling to cut out the middleman.


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

GUANGDONG INVESTMENT:  Retains Control Over Subsidiaries
--------------------------------------------------------
Cash-strapped Guangdong Investment (GDI) will hold on to two non-
core subsidiaries that are performing well. The firm owns 72
percent of Guangdong Brewery and 71.56 percent of Guangdong
Tannery, according to the Thursday issue of the South China
Morning Post.

Part of GDI's restructuring plan is to sell its loss making and
non-core businesses to help repay debt. Last week Hi Sun
announced plans to sell its 57.16 percent stake in Guangdong (GD)
Building for HK$31.48 million.

Under the disposal agreement, GDI undertook to waive an intra-
group debt of about HK$209 million owed to GDI by GD Building.


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

CP PRIMA:  Debt Restructuring Split
-----------------------------------
CP Prima says it will restructure its debt in two tranches, with
a long-term loan of US$36 million to start this year and US$44
million convertible bonds to mature on December 30, 2005, the
Indoexchange News reported on Wednesday.

The convertible bond can be converted into Central Pertiwi Bahari
stocks or extended per year until December 30, 2009. The interest
rate for the long-term loan was 2.5-3.5 percent above the
Singapore inter-bank offered rate (SIBOR), and 0.5 percent
annually for the convertible bond.

Hadijanto Kartika, CP Prima corporate secretary, said there is
also an accrued interest loan of US$2,215,517. The payment for
the accrued interest loan is scheduled for 2000, 2001, and 2002.


PT CHANDRA ASRI:  Marubeni Rejects Debt Restructuring Deal
----------------------------------------------------------
Japan's Marubeni has rejected the debt-restructuring agreement of
PT Chandra Asri, according to Thursday's issue of Business Day
Thailand.

Edwin Gerungan, chairman of the Indonesian Bank Restructuring
Agency (IBRA), said they are still negotiating a memorandum of
understanding (MOU) with Marubeni as they await a response on the
three new options offered by the Indonesian government.

Marubeni wants the interest on its loans to petrochemical giant
PT Chandra Asri be 2.5 percentage points above the London
Interbank Offered Rate (LIBOR) over 12 years as stated in the MOU
that lapsed last December 31. Gerungan said the government is
offering Marubeni a zero percent interest above LIBOR and 12 to
15 year period.

PT Chandra Asri owes Japanese creditors US$700 million -- three
trillion rupiah of debts to local banks have already been
transferred to IBRA.

The Indonesian government wants Marubeni to relax the terms after
the debt-to-equity swap in June giving a 20 percent stake in PT
Chandra.


PT KALBE FARMA:  Forecasts RP50B Net Loss
-----------------------------------------
PT Kalbe Farma (KLBF) is predicting a RP50 billion net loss for
last year mainly because of the depreciation of the rupiah
against the dollar despite a 41 percent increase in sales,
Indoexchange News reported on Wednesday. The rupiah sharply
depreciated against the dollar to Rp9,595 by the end of year 2000
from Rp7,100 in the corresponding period in 1999.

A Kalbe Farma director says the firm suffered RP 263 billion in
foreign exchange losses last year and RP 166 billion in net
interest charges, while revenue was RP1.58 trillion. Kalbe
Farma's debts totaled US$130 million last year.

The firm is expanding its exports to Malaysia, Sri Lanka,
Myanmar, South Africa and Zimbabwe.


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

CHIYODA:  Chooses AIG for Takeover
----------------------------------
American International Group (AIG) will take over Chiyoda Mutual
Life Insurance Co. by buying its operating rights while the
receiver submits a rehabilitation plan to the Tokyo District
Court, according to the Thursday issue of the Japan Times.

AIG's bid was raised and will be useful for Chiyoda in its
continued operations without aid from the Insurance Policyholders
Protection Corp., a public policyholders' safety net, they said.
AIG appears likely to further expand its presence in the life
insurance business in Japan by buying Chiyoda's rights.

Chiyoda's negative net worth jumped from 34.3 billion yen to 700
billion yen.


DAIEI:  Closes Six Stores
-------------------------
Retail chain operator Daiei Inc. will close six unprofitable
stores by the end of May, making a total of 27 stores that will
be closed by February 28. Asia Pulse reported on Tuesday the
stores are located in Chiba, Niigata, Shizuoka and Kagawa
prefectures as well as two outlets in Osaka.


KDDI:  Liquidates Telecom Units
-------------------------------
KDDI Corp. will liquidate its telecom firms and then merge as
part of its restructuring plan, AFX reported on Monday. Japan
Backhaul Co. Ltd. (JBC), KDD Corp, DDI Corp, IDO Corp. and other
KDDI telecom units will be merged into the group in June. A new
holding firm, KDDI, will emerge.

Yosuke Fukuma, said that since JBC has not started operations,
its liquidation will not affect earnings. JBC had planned to
build a fiber-optic network connecting central Tokyo and landing
stations for international undersea cables in Kanagawa and Chiba
prefectures.


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

DONG AH:  Might Abandon Libyan Project
--------------------------------------
Dong Ah Construction may be forced to abandon a waterway-
construction project in Libya, possibly forcing its guarantor to
pay the Korean government for losses, the Asian Wall Street
Journal reported on Tuesday.

The Libyan government is asking the Seoul District Court to
compel Korea Express Co., the guarantor, to pay US$1.3 billion
for government losses arising from the abandonment.

Both Dong Ah and Korea Express are under court receivership.
But Korea Express claims to have only US$562.9 million debt
payment guarantees to Dong Ah and holds 12 percent ownership of
the project.

Dong Ah has been recommended for liquidation and is being
reviewed by the Seoul District Civil Court.


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

IDRIS HYDRAULIC:  Banks Reject Supplemental Agreement
-----------------------------------------------------
Arab-Malaysian Merchant Bank Berhad (AMMB) and Arab-Malaysian
Bank Berhad (AMBB) have rejected a supplemental Debt
Restructuring Agreement (SDRA) for Idris Hydraulic (Malaysia)
Berhad.

In a letter to the Kuala Lumpur Stock Exchange on February 21,
Idris Hydraulic says it will re-negotiate with the two banks with
Newco and Dato' Che Mohd. (Investor) under the supervision of
Corporate Debt Restructuring Committee and Bank Negara Malaysia.

Idris' proposed debt-restructuring plan would increase the paid-
up capital of Newco (in place of Idris) from 363.02 million
shares to 582.34 million shares under a scheme called
irredeemable convertible unsecured loan stocks (ICULS-B).

The company proposes to give creditors unconvertible zero-coupon
loan stocks instead of convertible debt securities. Idris will
transfer ownership of Talasco Insurance, a subsidiary, to Newco
for RM130.9 million.


PARK MAY: Proposes Capital Reduction
------------------------------------
Park May Bhd. (PMB), a public bus transport company, has
completed debt restructuring as agreed to with the Corporate Debt
Restructuring Committee (CDRC), the Financial Institutions and
the Main Suppliers and Arab-Malaysian Merchant Bank Berhad (Arab-
Malaysian).

In a letter to the Kuala Lumpur Stock Exchange on February 21,
Park May said its paid-up share capital will be reduced from
RM45,000,750 comprising 45,000,750 ordinary shares of RM1.00 to
45,000,750 ordinary shares of RM0.80 each will be consolidated
into 36,000,600 ordinary shares.

The banks' debt of up to RM152.79 million will be converted into
30,558,000 new ordinary shares of RM1.00 each. Main Suppliers'
debt of up to RM20.49 million into up to 1.474 million new
ordinary shares of RM1.00 each and nominal value of RM18.438
million Irredeemable Convertible Unsecured Loan Stock (ICULS).

The authorized share capital raised from RM100 million comprising
100 million ordinary shares of RM1.00 each to RM500 million
comprising 500 million ordinary shares of RM1.00 each.


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

PHIL. AIRLINES:  Posts P540M Q3 Loss
------------------------------------
Philippine Airlines (PAL) has posted a P539.68 million net loss
for the third quarter mainly because of fuel and other items
during the past two months, the Manila Times reported on
Wednesday.

But despite its overall fiscal third quarter loss, PAL said it
registered a net income of P299.25 million in the nine months
ended December from the year-ago loss of P121.64 million. The
airline lost P156.27 million in the October-December period of
1999.

The airline said that its poor performance in the same period in
2000 was due to net losses amounting to P796.6 million in October
and November, which is described as seasonally "lean months" for
PAL. PAL, which is majority owned by Lucio Tan, said it made net
revenues of P9.98 billion in the October-December period from the
year-earlier P6.86 billion.


PHIL. NATIONAL BANK:  Tycoon Talks with Gov't. on Sale
------------------------------------------------------  
The Philippine government and business tycoon Lucio Tan have
discussed a joint sale of shares in Philippine National Bank
(PNB) to strengthen the bank and finally resolve its
rehabilitation process, according to Wednesday's Philippine Star.

Finance Secretary Alberto Romulo says he has asked the Bangko
Sentral ng Pilipinas (BSP) for more time to review the
rehabilitation plan and maximize earnings from the sale of its
shares in the bank.

BSP Governor Rafael Buenaventura said they are concerned about
the bank's viability and are waiting for the Department of
Finance (DOF) to recommend the best option. He added the BSP
would have to work closely with the DOF and the Philippine
Deposit Insurance Corp. (PDIC) to ensure that PNB's
rehabilitation is an integrated plan.

Meanwhile, PNB's chairman, Andres Narvasa, will most likely be
removed because of his role as legal counsel for former President
Joseph Estrada and his alleged role in approving PNB's loan to
property and gaming BW Resources Corp.


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

ITALIAN-THAI:  Sells Stake in Cement Firm
-----------------------------------------
Italian-Thai Development, the country's largest construction
company, will sell 50 percent of its stake in Saraburi Cement to
pay debts of Bt5.8 billion, according to the Tuesday issue of the
Business Day. Italian-Thai needs to renegotiate with bondholders
for Bt3.5 billion worth of securities.

The cement firm produces 700,000 metric tons of cement and
clinker annually.


NAKORNTHAI:  Creditors Select New Planner
-----------------------------------------
Maharaj Planner Ltd. has been selected as the new planner for
Nakornthai Strip Mill PCL by creditors as the firm proceeds with
its Bt40 billion debt restructuring plan.

Creditors had rejected the debt-restructuring plan submitted by
the previous planner, Ramkhamhaeng Planner. It has rejected the
creditors' proposed amendments, according to the Wednesday issue
of the Asian Wall Street Journal.

Nakornthai Chairman Sawasdi Horrungruang will head the Maharaj
Planner and the courts approval will be expected next week.
Maharaj will draw out a new plan to be submitted to creditors.
Approval is expected in 45 days then will be elevated to the
court and will be allowed two 15-day extensions.



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

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