TCRAP_Public/010228.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

           Wednesday, February 28, 2001, Vol. 4, No. 41

                            Headlines


A U S T R A L I A

ELECTRUCK:  ASIC Investigates Non-Payment of Benefits
SEAFOOD ONLINE:  Placed Under Voluntary Administration


C H I N A  &  H O N G  K O N G

E-SILKROAD:  May Skip HK$8M Bond Payment
RENREN MEDIA:  No Interested Investors


I N D O N E S I A

ASIA PULP:  1.4 Billion Pounds Debt Repayable This Year
BUKAKA GROUP:  Creditors Sue Former President   


J A P A N

KANSAI SAWAYAKA:  Government Promises 494B Aid
MITSUI CONSTRUCTION:  Negotiates for Debt Waiver Plans
SHINKIN BANK:  DIC Gives 23.6B Yen Aid


K O R E A

KOREA REAL ESTATE:  Must Pay 480 Won in Debt
KOREA LIFE:  Government Set to Sell Korea Life


M A L A Y S I A

BESCORP:  Breaches Listing Obligation
KELANAMAS:  Incurs Shareholders's Fund Deficit    
MBF HOLDINGS:  Breaches Listing Obligation
PENAS CORP.:  Breaches Listing Obligation


P H I L I P P I N E S

ORION-SQUIRE:  Seeks More Time on Capital Injection
UNIWIDE:  URC Rejects Payment In Kind Offer


S I N G A P O R E

GOLDTRON:  Finalizes Debt Restructuring Plans


T H A I L A N D

THAI PETROCHEMICAL:  Court Rejects Second Petition
THORNBURI:  Hearing Postponed to March 7
UNITED BROADCASTING:  Posts Bt2.08B Loss


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

ELECTRUCK:  ASIC Investigates Non-Payment of Benefits
-----------------------------------------------------
The administrator of Electruck has sought the help of Australian
Securities and Investment to investigate the firm for non-payment
of more than A$1 million in entitlements. The Australian
Manufacturing Workers Union (AMWU) will also join in demanding an
investigation, which will include four directors, AAP News
reported on Monday.

The administrator, KPMG, says Electruck still owes 40 employees
some A$1 million in redundancy, holiday pay and long service
leave. The 40 are among 180 workers who have been laid off since
parent company ECTEC closed the doors on Electruck and
manufacturing company Kennedy Taylor.

KPMG had previously advised the union that workers would probably
receive no more than 50 cents for every dollar they are owed.


SEAFOOD ONLINE:  Placed Under Voluntary Administration
------------------------------------------------------
Seafood Online.com, an Internet aquaculture trading company, will
be placed under voluntary administration in order to recover some
US$2.5 million used for the construction of its aquaculture
plant. Seafood Online.com planned to breed and sell reef fish to
Asia via the Internet, according to the Friday issue of the
Sydney Morning Herald.

John Schmierer, Seafood Online.com administrator, said that by
the end of last year, the firm had only A$10,000 remaining from
the A$16 million it raised in a public share offer in February of
last year.

By the end of 2001 Seafood Online was to have sold 650 tons of
live fish for $25 per kilo. Specially designed software was to
have connected the organization to its Chinese market. The
breeding facility is fully operational, and capable of producing
2,000 tons of fish a year.

Seafood plans to raise additional capital through private
placement with interested investors.


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

E-SILKROAD:  May Skip HK$8M Bond Payment
----------------------------------------
E-Silkroad Holdings, an Internet service provider, has warned
investors it might not be able to repay a HK$8 million
convertible note owed to the chairman's brother, who had bought a
14.6 percent stake at half the initial public offering (IPO)
price a year ago.

Sun Wah, a firm wholly owned by chairman Choi Koon-Ming's brother
Choi Koon-shum, owns the convertible note repayable in August
2003, according to the Monday issue of the South China Morning
Post. The note, with an interest rate of 8 percent, is
convertible to the company's shares at 17.5 HK cents, 30 percent
less than the IPO price of 25 HK cents. The group has a history
of losses and may not be able to raise the money to repay the
note.

The three-year-old company made a net loss of HK$15.5 million on
turnover of HK$1.8 million in the 10 months to October last year.
It recorded no turnover in the previous two financial years.

Last year, E-Silkroad paid three newly recruited directors HK$2.7
million in remuneration. The company said total remuneration to
four directors was expected to be no more than HK$4 million this
year.


RENREN MEDIA:  No Interested Investors
--------------------------------------
Trading in shares of Renren Media, an Internet portal operator,
dived when announcement was made that there were no buyers for
its parent firm's stake, according to the Monday issue of the
South China Morning Post.

The company said talks between Renren Media Holdings, which owns
67 per cent of the portal, and several parties, from February 16
to February 19, had not resulted in the sale of all or part of
the parent's holding.

The dotcom obtained a backdoor listing through loss-making Ankor
Holdings on March 15, after securing investment from a consortium
of venture capitalists led by News Corp's Internet arm and JH
Whitney and Co.

Renren Media posted a net loss of HK$47.84 million for the half
year to June 30 on turnover of HK$55.9 million due to substantial
marketing expenses.

On Wednesday, Renren Media cancelled plans to acquire the assets
of three China portal operators, leaving the company's mainland
expansion plan in doubt.


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

ASIA PULP:  1.4 Billion Pounds Debt Repayable This Year
-------------------------------------------------------
Asia Pulp & Paper, one of the region's largest companies, needs
to pay 1.4 billion pounds in debt this year. The firm has already
made one late payment and missed another, Evening News reported
on Thursday.

American investors are now worried about a possible default on
debt of 7.48 billion pounds. The company may be forced to
negotiate with investors to restructure the debts.

The company -- controlled by the Sinar Mas, one of Indonesia's
largest conglomerates -- has 17 major manufacturing facilities in
Indonesia, China, Singapore and India, employing about 79,000
people. This may make it difficult for creditors to get their
hands on assets.


BUKAKA GROUP:  Creditors Sue Former President   
---------------------------------------------
Creditors are asking former Bukaka group president for payment of
debts amounting to 33.5 billion rupiah as they rejected his
appeal for a temporary suspension of payments on his personal
debts, according to the Thursday issue of AFX News.

Fadel Muhammad, former Bukaka Group president, has failed to
repay PT Bank IFI debts of 33.5 billion rupiah, which includes
US$3.7 million owed to ING Bank and 88 billion rupiah owed to the
Indonesian Bank Restructuring Agency (IBRA). PT Bank IFI has
since filed a bankruptcy application against him.

Tafrizal Hasan, receiver of the Bukaka group, revealed that
Muhammad appealed to the Jakarta Commercial court for a 40-day
debt payment suspension.

Hasan said Muhammad pledged to hand over to creditors four
houses, one automobile and four bank accounts, on top of an
earlier promise to hand over his assets in a number of companies.


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

KANSAI SAWAYAKA:  Government Promises 494B Aid
----------------------------------------------
Kansai Sawayaka, a company set to takeover failed Kofuku Bank,
will get a 494.1 billion yen assist from Deposit Insurance Corp.
(DIC), Japan's banking industry safety net, Jiji Press English
News Service reported on Wednesday. DIC will also sell 170.6
billion yen in Kansai Sawayaka bad loans to Resolution and
Collection Corp., or RCC.

Kansai Sawayaka was set up by Asia Recovery Fund L.P., a U.S.
investment fund managed by WL Ross and Co., after Kofuku Bank
went bust in May 1999.


MITSUI CONSTRUCTION:  Negotiates for Debt Waiver Plans
------------------------------------------------------
Mitsui Construction is negotiating with creditors for the
approval of a debt waiver, Jiji Press English News Service
reported on Thursday. This came as the firm readjusted its debt
waiver by 20 billion yen to 143 billion yen.

In exchange, Mitsui Construction will ask creditor banks to
purchase new shares worth 20 billion yen.

The firm is consolidating the proposals together with creditor
banks.


SHINKIN BANK:  DIC Gives 23.6B Yen Aid
--------------------------------------
Deposit Insurance Corp. (DIC), Japan's banking industry safety
net, will give a total of 23.6 billion yen to nine credit
associations that will succeed Tokyo-based Wakaba Shinkin Bank's
business on Monday, Jiji Press English News Service reported on
Wednesday. Wakaba went bankrupt in April 2000.

Shinkin Bank submitted a restructuring plan on June 15 of last
year to the Financial Supervisory Agency. The plan calls for a
reduction of staff from 536 to 400 and raising the capital ratio
to at least 5 percent. Six branches will also be closed or merged
mostly in the Osaka-Kobe area.

The failed credit association will seek 1 billion yen new capital
from creditors.


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

KOREA REAL ESTATE:  Must Pay 480 Won in Debt
--------------------------------------------
Korea Real Estate Trust Co. (KORET), the ailing state-owned
property consulting and development company, should repay 480
billion won in maturing commercial paper, according to the Monday
issue of the Korea Herald.

The debt coming due is part of 680 billion won in KORET's
outstanding commercial paper, which creditors agreed to roll over
late last year. The creditors are scheduled to hold a steering
committee meeting on February 26 to discuss the extension of the
maturity of the company's CP till the end of 2004 and a debt-
rescheduling program.

KORET, a subsidiary of Korea Asset Management Corp., has been
faced with a credit crunch as it posts huge losses in real estate
development projects.


KOREA LIFE:  Government Set to Sell Korea Life
----------------------------------------------
The government will push through with the sale of Korea Life
Insurance next week following last year's failed bidding,
according to the Friday issue of the Korea Herald.

Jin Nyum, Deputy Prime Minister, blamed poor accounting
transparency and uncertainty over structural reforms as the main
culprits to stock prices being undervalued. He said that the
government may be able to sell off the insurer without injecting
the 1.5 trillion won estimated to be necessary to recapitalize
Korea Life, depending on the buyer.


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

BESCORP:  Breaches Listing Obligation
-------------------------------------
Bescorp, an investment holding is in breach of continued listing
obligations under the Kuala Lumpur Stock Exchange (KLSE) revamped
listing requirements and its new Practice Note 4/2001. Under
Practice Note 4/2001, companies are given one year to strengthen
their financial status if they have deficit in shareholders'
equity.

The company, which is under special administration, is finalizing
all agreements and the necessary applications in connection with
the restructuring scheme, Business Times reported on Wednesday.

The provisions also apply if special administrators or receivers
and managers have been appointed, or if auditors have doubts over
a company's ability to continue as a going concern.

If the firm has not achieve financial stability after one year,
its shares will be suspended or delisted from the KLSE.


KELANAMAS:  Incurs Shareholders's Fund Deficit    
----------------------------------------------
Kelanamas, was one of the major tin producers in Malaysia, has
revealed that its shareholders' fund had a deficit of RM194.96
million as of April 30, 2000, and that it is also in danger of a
breach of its continued listing obligations under the Kuala
Lumpur Stock Exchange (KLSE) revamped listing requirements and
its new Practice Note 4/2001.

Auditors KPMG have given a disclaimer with respect to its
assessment of the firm, Business Times reported on Wednesday.

Special administrators have also been appointed over its
subsidiary, Alor Setar Securities Sdn Bhd, on February 12, 1999,
by bad debt agency Pengurusan Danaharta Nasional Bhd.

The rescue and restructuring scheme is currently before the SC.


MBF HOLDINGS:  Breaches Listing Obligation
------------------------------------------
Mbf Holdings, a developer of hotels, holiday resorts and other
landed properties, and four other companies are in breach of
their continued listing obligations under the the Kuala Lumpur
Stock Exchange (KLSE) revamped listing requirements and its new
Practice Note 4/2001.

The firm's shares were suspended in 1999 and have a RM850.1
million shortfall in shareholders' equity as of December 31,
1999, Business Times reported on Wednesday.

Schemes of arrangements that were proposed in 1999 were approved
by local and offshore lenders and shareholders. Applications to
the Securities Commission (SC), Foreign Investment Committee
(FIC) and the KLSE will be made in due course.

Mbf's directors are optimistic that its financial condition will
normalize after the completion of the schemes.


PENAS CORP.:  Breaches Listing Obligation
-----------------------------------------
Penas Corp Bhd, involved in residential and commercial building
construction, plumbing and sanitary engineering works, and four
other companies are in breach of their continued listing
obligations under the Kuala Lumpur Stock Exchange (KLSE) revamped
listing requirements and its new Practice Note 4/2001.

Auditors said the firms' finances are not yet stable so it is
closely being monitored, Business Times reported on Wednesday.

Penas had made plans to regularize their financial positions.

Under Practice Note 4/2001, companies are given one year to
strengthen their financial status if they have deficit in
shareholders' equity.

The provisions also apply if special administrators or receivers
and managers have been appointed, or if auditors have doubts over
a company's ability to continue as a going concern.

If the firm has not achieved financial stability after one year,
its shares will be suspended or delisted from the KLSE.


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

ORION-SQUIRE:  Seeks More Time on Capital Injection
---------------------------------------------------
Korea's Tong Yang Group is asking the Securities and Exchange
Commission (SEC) for a three-month respite to review the
financial condition of brokerage firm Orion-Squire Capital, Inc.
(OSCI) before it makes a capital infusion.

OSCI needs the capital to reactivate operations after its trading
activities were suspended this week, BusinessWorld reported on
Friday. OSCI is capitalized at P300 million and one of the
highest capitalized brokers in the country in 1999.

As part of streamlining efforts, the brokerage firm terminated
its sales team of 16 employees. Traders who were not serviced are
currently coursed through affiliate broker Angping & Associates
Securities Inc.

OSCI is a subsidiary of Tong Yang Securities Co.Ltd (TYSC),
considered among the top brokers in Korea and capitalized at
US$388 million.


UNIWIDE:  URC Rejects Payment In Kind Offer
-------------------------------------------
Uniwide Group is trying to push a dacion en pago scheme, payment
in kind, to solve its P11.1 billion debt with three creditor
banks although Universal Robina Corp. (URC) has rejected the
idea.

Uniwide earlier asked for a separate memorandum of agreement with
International Exchange Bank (I-Bank), Metropolitan Bank and Trust
Co. (Metrobank) and United Coconut Planters Bank (UCPB) to reduce
its debt, according to the Thursday issue of the BusinessWorld.

Under the said agreement, Uniwide will use its non-core and
non-operating assets as payment in order to retire all
obligations to the three banks. URC has informed the Securities
and Exchange Commission (SEC) that it opposes the separate
memorandum proposal because it favors the three banks and is
prejudicial to the interest of the other creditors.


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

GOLDTRON:  Finalizes Debt Restructuring Plans
---------------------------------------------
Singapore telecommunications company Goldtron has informed
shareholders that its debt-restructuring plan has been approved
by creditors, according to the Thursday's Singapore Stock
Exchange.

Mokhani Bin Mahatir, Goldtron chairman, said with the completion
of the restructuring plan, the company will emerge stronger with
net tangible assets of S$360 million. They will focus on the core
business of manufacturing and components distribution.

The debt-restructuring plan calls for the reduction of par value
per share from S$0.20 to S$0.05 a capital reduction of S$202.61
million. The firm's employees and directors will subscribe to 108
million new ordinary shares valued at S$0.05 per share.

Creditors will also convert some US$359.82 million debt into
equity by issuing conversion of ordinary shares at S$0.30 per
share.


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

THAI PETROCHEMICAL:  Court Rejects Second Petition
--------------------------------------------------
The Central Bankruptcy Court has rejected the second petition for
the rehabilitation plan of Thai Petrochemical Industry (TPI), The
Asian Wall Street Journal reported on Friday

Prachai Leophairatana, TPI founder, had asked the court to stop
Effective Planners, the TPI administrator, from increasing the
company's capital as part of a debt-for-equity swap giving
creditors full control of TPI. The rejection of both petitions
will pave the way for TPI's capital increase by March 1.

Effective Planners will proceed in conducting a recapitalization
already approved by the court to be monitored by the receiver.
They are planning to raise TPI's registered capital to Bt81
billion from Bt19.5 billion. This will be done through the
issuance of 6.15 billion new shares valued at Bt10 per share.

Under the restructuring plan, creditors will swap about US$720
million in outstanding interest payments for 75 percent of TPI's
expanded equity, giving them control of the petrochemical
concern. In the next four years, creditors plan to recover a
further US$1 billion from TPI's cash flow and as much as $200
million from sales of its non-core assets.


THORNBURI:  Hearing Postponed to March 7
----------------------------------------
The hearing on the rehabilitation petition of Thonburi Automotive
Assembly Plant was postponed to March 7 after the debtor and
creditor failed to reach an agreement, Bangkok Post reported on
Monday.

The hearing at the Central Bankruptcy Court last Friday had to be
postponed after the court ordered both parties to find a common
stand.

The plan had already received the endorsement of a majority of
creditors, but three creditors, the Excise and Customs
departments and Thai Military Bank, have filed new objections.


UNITED BROADCASTING:  Posts Bt2.08B Loss
----------------------------------------
Thai cable television operator United Broadcasting Corp. (UBC)
announced a heavier than expected loss last year, Reuters
reported. UBC posted a net loss of Bt2.08 billion compared with a
loss of Bt2.7 billion the previous year.  



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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