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                    A S I A   P A C I F I C

           Tuesday, February 27, 2001, Vol. 4, No. 40

                           Headlines


A U S T R A L I A

CONFIDENS:  Receiver Appointed
ROTHWELLS:  Sues HSBC for Role in Collapse


C H I N A  &  H O N G  K O N G

ZHENGZHOU BAIWEN:  Shareholders Approve Rescue Plan


I N D O N E S I A

PT BAHANA:  Parliament Calls for Dissolution
PT PANCA OVERSEAS:  IFC Ties Gov't. Aid in Bankruptcy Case
PT TIRTAMAS:  Supreme Court Rejects Appeal


J A P A N

MITSUBISHI MOTORS:  Revival Calls for 9,600 Job Cuts
TOHOKU RESORT:  Causes Losses in Parent Firm
SOGO CO.:  Transfers Business to New Firm


K O R E A

HANA BANK:  To Sign US$100M Loan
SHINDONGAH INSURANCE:  Attracts JP Morgan as Investor


M A L A Y S I A

EXPRESSWAY:  Proposes New Restructuring Plan
RNC CORP.:  Announces Equity Deficit
TECHNOLOGY RESOURCES:  May Ask for Debt Rescheduling


P H I L I P P I N E S

ALL ASIA:  IFC Blocks Infusion Plan
NATIONAL STEEL:  Creditors Ask SEC to Reject Malaysia Opposition
PHILIPPINE AIRLINES:  Tycoon Willing to Invest P30B More
URBAN BANK:  Execs Charged Anew


T H A I L A N D

KR PRECISION:  Losses Widen to Bt374M
PRASIT PATANA:  Selects PricewaterhouseCoopers as Planner
RENOWN LEATHERWARES:  Shares Delisted


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

CONFIDENS:  Receiver Appointed
------------------------------
Creditors have appointed Max Prentice as Confidens Investment
Trust receiver on February 16, 2001, according to the Wednesday
issue of the Sydney Morning Herald.

Confidens has 185 investors and liabilities of $A12.8 million and
a $A2.1 million exposure to the Enhanced Cash Management Trust.
The trust was frozen because of risky investments.

Prentice told creditors that the audit undertaken on Confidens
will be held in trust and the winding up will be done "in an
orderly fashion."


ROTHWELLS:  Sues HSBC for Role in Collapse
------------------------------------------
FAI Insurance has filed suit against Hongkong and Shanghai
Banking Corporation Ltd. (HSBC) for its role in the collapse of
Rothwells Bank, according to the Wednesday issue of the
Australian Financial Review.

Rothwells Bank closed in 1998 after it had accumulated debts
amounting to A$322 million. FA Insurance lost A$5 million.

A spokesman for FAI Insurances blamed HSBC as advisor and then
Wardley Australia CEO, James Yonge, for deceiving investors as to
the health of Rothwells Bank.

Yonge was instrumental in soliciting financial support to hide
the effects of the stock market crash of October 1987.

If other investors join FA Insurance in its suit, the claims may
jump to A$1 billion.


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

ZHENGZHOU BAIWEN:  Shareholders Approve Rescue Plan
---------------------------------------------------
Shareholders have approved Zhengzhou Baiwen's rescue plan
including the takeover bid of Salian Group, the South China
Morning Post reported on Friday.

Sanlian offered to buy 50 percent of the company by injecting 400
million yuan in assets and assuming 1.5 billion in debts.

They will be forced to give up 50 percent of their shares but
they have no choice because they will be forced to go bankrupt.

Zhengzhou Baiwen reported losses for 1998 and 1999 -- that year
US$118 million -- and has forecast a loss for last year.

The China Securities Regulatory Commission (CSRC) is monitoring
the rescue plan because they may be forced to delist trading of
shares.


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

PT BAHANA:  Parliament Calls for Dissolution
--------------------------------------------
Members of Parliament are calling for the dissolution of PT
Bahana Prakarya Industri Strategis (BPIS) to improve its
financial situation. PT Bahana will have to let go some 10
subsidiaries, according to the Friday issue of the Jakarta Post.

During a hearing Wednesday with the House of Representatives'
Commission IX on budgetary and finance affairs, the Finance
Minister echoed Parliament's sentiments.

Nyoman Tjager, director general of state-owned companies, wants
the government to appoint an independent consultant to conduct a
study, before deciding whether to dissolve the holding company.

The ten companies include aircraft maker PT IPTN, ship builder PT
PAL, steel maker PT Krakatau Steel, weapons and ammunition
producer PT Pindad, explosives maker PT Dahana, railroad car
manufacturer PT Inka, heavy engineering company PT Barata
Indonesia, infrastructure developer PT Boma Bisma Indra,
telecommunications manufacturer PT Telekomunikasi Indonesia
(Inti), and electronics component producer PT Len.

Several of the companies have suffered financial losses since
their establishment in 1989.


PT PANCA OVERSEAS:  IFC Ties Gov't. Aid in Bankruptcy Case
----------------------------------------------------------
International Finance Corporation (IFC), the private sector arm
of the World Bank is putting on hold aid to Indonesia after the
outcome of its bankruptcy case against PT Panca Overseas Finance,
an Indonesian financial service operator, according to the
Wednesday issue of the Australian.

Peter Woicke, executive vice-president of the International
Finance Corporation (IFC), said PT Panca owes IFC A$13 million.

Another bank is planning to write-off an A$10 million loan to PT
Panca.

Australia's ANZ Bank suspects that its subsidiary, the ANZ Panin,
received proceeds from the loan.


PT TIRTAMAS:  Supreme Court Rejects Appeal
------------------------------------------
The Supreme Court (SC) has rejected an appeal filed by the
Indonesian Bank Restructuring Agency (IBRA) to declare PT
Tirtamas Comexindo insolvent. The SC had rejected IBRA's appeal
last year. Tirtamas owes Rp 1.5 trillion to various banks and
non-financial institutions, including Bank Tamara with Rp38.19
billion loans that IBRA represented, the Jakarta Post reported on
Friday.

The Supreme Court cited government regulation No 17/1999, Article
40, to support the legal point as to why it rejected IBRA's
appeal. Article 40 states that when IBRA takes over banks, it
must thereafter act on behalf of the banks' management.

The granting of a power of attorney does not follow the said
article and the court declared it "defective."


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

MITSUBISHI MOTORS:  Revival Calls for 9,600 Job Cuts
----------------------------------------------------
Mitsubishi Motors Corp. might be forced to lay off 9,600
employees, or 15 percent of the workforce, as part of a new
medium-term business plan, Reuters reported on Tuesday.

Part of the new plan will be the closure of its plant in Nagoya,
central Japan in contrast with its December statement to maintain
the plant.

Just last week, the firm recalled 1.52 million cars worldwide
costing the company 17 billion yen.

Mitsubishi Motors struggled last year with a net loss of 140
billion yen. DaimlerChrysler AG tried to protect its 34 percent
stake by trying to help the firm revive its financial condition.


TOHOKU RESORT:  Causes Losses in Parent Firm
--------------------------------------------
The liquidation of Tohoku Resort System Co. Ltd., a ski resort
operator, has caused its parent firm, East Japan Railway Co.
(JEJR), to declare a 6 billion loss. JEJR is looking for an
investor to take over Tohoku Resort, in which it holds a 52.3
percent stake, Dow Jones reported on Thursday.

For this year ending March JEJR expects a 2 billion yen loss but
will not affect its earnings.

Tohoku Resort posted a net loss of Y96 million in the fiscal year
ended June 2000.


SOGO CO.:  Transfers Business to New Firm
-----------------------------------------
Control of department store operator Sogo Co. has been passed on
to Seibu Department Stores Ltd. with capitalization of 10 million
yen, according to the Thursday issue of Japan Times.

The new firm, called Sogo Inc., will have offices in Yokohama and
will be 95 percent owned by Seibu and 5 percent by the Industrial
bank of Japan. New Sogo shares will be issued to increase its
capital by offering shares to foreign and domestic investors.

The Sogo group collapsed last July with 1.87 trillion yen of debt
and filed for protection from creditors with the Tokyo District
Court. Its rehabilitation plan, under which the number of Sogo
outlets was cut to 13 from 22, won court approval last month.


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

HANA BANK:  To Sign US$100M Loan
--------------------------------
Hana Bank will finalize a US$100 million syndicated loan from a
group of foreign financial institutions that will be used to pay
off its debt.

Standard Chartered Bank of Britain has lead-managed the three-
year loan, which will carry an interest of Libor (London Inter-
Bank Offered Rate) plus a spread of 0.75 percent, the Korea
Herald reported on Friday.

A total of 17 banks from 11 countries have participated in the
syndication.


SHINDONGAH INSURANCE:  Attracts JP Morgan as Investor
-----------------------------------------------------
JP Morgan, one of the world's leading investment banks, has shown
interest in investing in Shindongah Insurance as part of its plan
to expand in Japanese insurance business. Korean Life Insurance,
the parent firm of Shindongah, has received another offer from SK
Group regarding the sale, according to the Thursday issue of the
Korea Herald.

JP Morgan has sent officials to assess management philosophy and
study the insurance firm's insurance business prospectus. Aside
from Shindongah, JP Morgan has plans to buy into other small and
medium-sized insurance companies.

The Financial Supervisory Commission said it has given priority
to JP Morgan's offer to acquire Shindongah Insurance and may even
include Korea Life Insurance.


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

EXPRESSWAY:  Proposes New Restructuring Plan
--------------------------------------------
Expressway Lingkaran Tengah Sdn. Bhd., (ELITE) a concession
company that operates the North South Expressway Central Link and
subsidiary of United Engineers (Malaysia) Bhd., is proposing a
new restructuring plan after it defaulted on loans amounting to
RM940 million.

In a letter to the Kuala Lumpur Stock Exchange on February 22,
Elite said it defaulted on payment of its RM400 million Bond
Issue Facility (BIF), RM440 million Note Issue Facility (NIF) and
RM100 million Bridging Loan Facility (BLF).

In the new debt restructuring plan, Elite will issue Al' Bai
Bithamin Ajil Islamic Debt Securities (ABBA) worth Bt1.86 billion
that will fall due from 2006 to 2014. Also non-detachable
redeemable secured bonds will be issued worth RM922.5 million
that will fall due from 2001 to 2014.


RNC CORP.:  Announces Equity Deficit
------------------------------------
RNC Corp. Bhd. announced a deficit in shareholders' equity within
seven days from February 15 this year as it is now placed under a
special administrator, Business Times reported on Tuesday.

A statement to the Kuala Lumpur Stock Exchange (KLSE) says that
if the firm cannot comply with the requirements, its shares may
be suspended or delisted.

Pengurusan Danaharta Nasional Bhd. was appointed as special
administrator.

RNC had proposed to address its financial problems through
capital reconstruction by forming a new entity called Equity
Promenade Sdn. Bhd. Under the plan its plastic business will be
consolidated and it will dispose of other subsidiaries.

The Securities Commission has approved the firm's rights issue
and acquisition of a water treatment business and issue
redeemable convertible unsecured loan stock.

The other proposals approved thus far include an exemption from
the obligation to extend an unconditional mandatory takeover
offer, and the proposed transfer of RNC's listing status on the
main board to Equity Promenade.

The scheme is now pending approvals of the KLSE and the State
Authority of Johor.


TECHNOLOGY RESOURCES:  May Ask for Debt Rescheduling
----------------------------------------------------
Technology Resources Industries (TRI), the largest Malaysian
cellular phone company, says that due to its continued losses it
may be forced to ask bondholders to reschedule debt repayments,
according to the Thursday issue of the Business Times.

TRI's net loss stood at RM99.5 million last year and RM344.3
million the previous year. The target customer base stood at 1.5
million. Operating profit improved significantly to RM946.5
million from RM671.4 million, but the company continued to be
weighed down by high interest expenses and depreciation charges.


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

ALL ASIA:  IFC Blocks Infusion Plan
-----------------------------------
The International Finance Corp. (IFC), the private sector arm of
the World Bank, has rejected a capital infusion plan for All Asia
Capital & Trust Corp., arguing that such a plan is not allowed in
the non-dillution clause of its loan agreement, the Philippine
Daily Inquirer reported on Thursday.

All Asia signed an A$17 million long-term loan agreement with IFC
last year. Eusebio Tanco, All Asia vice chairman, said local
shareholders wanted to infuse P500 milllion to save the firm.
Tanco criticized the IFC of not helping in the rehabilitation
plan and blocking efforts to avoid liquidation.

Nicasio Alcantara, chair of All Asia's executive committee, said
re-capitalization is essential to keep the firm afloat and avoid
liquidation.


NATIONAL STEEL:  Creditors Ask SEC to Reject Malaysia Opposition
----------------------------------------------------------------
The creditor-banks of National Steel Corp. (NSC) have asked the
Securities and Exchange Commission (SEC) to reject a motion to
stop the liquidation of NSC's assets filed by the steel firm's
Malaysian owners, according to the Friday issue of the Philippine
Star.

In its motion filed with the SEC on February 22, the creditor-
banks said Hottick Investments Ltd., the Malaysian owners, merely
wanted to delay the liquidation process.

The creditor banks include Equitable-PCIBank, Philippine National
Bank, Land Bank of the Philippines, Global Business Bank, and
Credit Agricole Indosuez.

Hottick's position states that SEC can still accept their
application for relief since the rehabilitation process is not
yet over.

But the creditors said that there is nothing in the SEC rules of
corporate recovery that requires notice and hearing before the
state-run securities watchdog may proceed to terminate
rehabilitation proceedings or which prevents the SEC from
directly ordering the dissolution and liquidation of the company.

Hottick has reportedly not shown any concrete indication or basis
for its claim that NSC can still be rehabilitated or that its
business is feasible or profitable or will work to the best
interest of the stockholders, parties-litigants, creditors or the
general public.


PHILIPPINE AIRLINES:  Tycoon Willing to Invest P30B More
--------------------------------------------------------
Business tycoon Lucio Tan has expressed a willingness to inject
P30 billion more in Philippine Airlines (PAL) for additional
internal routes, according to the Friday issue of the Philippine
Daily Inquirer. PAL is searching for new routes, possibly on the
US East Coast and another destination in Europe.

PAL's re-fleeting and expansion program is actually a revival of
the management's multi-billion-peso program before the 1997
financial crisis affected the company's bottom line and the 1999
labor program, which made matters worse.

In its latest financial report ending December 2000, PAL posted a
net loss of P539.68 million versus losses of P156.27 million the
previous year.


URBAN BANK:  Execs Charged Anew
-------------------------------
The Department of Justice (DOJ) has filed with the courts new
charges of estafa involving P1.8 billion against 11 Urban Bank
officers led by Arsenio M. Bartolome and Teodoro C. Borlongan,
chairman and president of the bank, respectively, according to
the Friday issue of the Philippine Star.

Charged before the Makati RTC, aside from Bartolome and
Borlongan, are: Corazon M. Bejasa, director and corporate
secretary of Urban Bank Inc. (UBI) and Urbancorp Investments,
Inc. (UII); Nida S. Santos, senior vice president of UBI and UII;
Milagros D. Santiago, senior manager of UBI and UII trust
department; Rowena E. Punsalan, senior manager of UBI and UII
trust department; Mark D. Ching, manager of UBI; Chulla M.
Formanes, manager of UBI; Loida O. Payonga, assistant vice
president and trust officer of UII; Amelia M. Ordas, manager for
operations of UII trust department; and Cecilia M. Magugat, vice
president of UBI and UII.

The DOJ said it filed one estafa case now pending before the sala
of Judge Cesar Santamaria for transactions of April 24, 2000,
involving P744.8 million and the other before 5 the sala of Judge
Tranquilino Salvador on business deals on April 25, 2000,
involving P1.049 billion.

In its charge sheet, the DOJ accused respondents in both cases of
complicity in "willfully, unlawfully and feloniously"
misappropriating or converting money solicited from UBI
depositors and the general public to purchase substandard or
doubtful receivables from the trust department of UBI's affiliate
UII.


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

KR PRECISION:  Losses Widen to Bt374M
-------------------------------------
Kr Precision, an electronic manufacturer, has posted a net loss
of Bt373.8 million last year, up from Bt17.88 million the
previous year mainly because of higher selling prices. The firm
also suffered when it wrote off Bt76.7 million for tooling and
jigs and a Bt114.2 million impairment loss, the Nation reported
on Thursday.

Sales also rose by 87 percent to Bt1.18 billion last year from
Bt624 million in 1999.


PRASIT PATANA:  Selects PricewaterhouseCoopers as Planner
---------------------------------------------------------
The Central Bankruptcy Court of Thailand has appointed
PricewaterhouseCoopers Corporate Restructuring Ltd. as planner of
Prasit Patana (PYT), a health care services company.

Paphon Mangkhalathanakun, a representative of
PricewaterhouseCoopers Corporate Restructuring Ltd. said in a
letter to the Stock Exchange of Thailand on February 21 said they
are in the process of consulting and negotiating with creditors
with respect to the debt-restructuring plan. Mangkhalathanakun
said they are seeking a one-month extension until March 21, 2001,
to submit the rehabilitation plan.

PYT has a total assets of Bt6.712 billion and debts of Bt11.12
billion as of September 30, 2000. The company's loss stood at
Bt7.8 billion.


RENOWN LEATHERWARES:  Shares Delisted
-------------------------------------
Renown Leatherwares Public Company Limited (RENOWN) is facing
delisting proceedings after showing a Bt1.99 million negative
shareholders' equity.

In a letter to the Stock Exchange of Thailand (SET) on February
22, the board of governors instructed the firm to undergo debt
restructuring and draw plans to solve its financial problems.

The Central Bankruptcy Court on November 17 last year ordered
that RENOWN's assets be placed under receivership.

The SET Board of Governors has the power to delist firms based on  
Section 171 (4) of Securities and Exchange Act B.E. 2535.



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