TCRAP_Public/010321.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, March 21, 2001, Vol. 50, No. 56



NORMANS WINES: Restructuring To Bring Positive Outcome
CENTAUR MINING: Appoints Receivers And Managers
HARTS AUSTRALASIA: Posts $8.15M Losses
ISIS COMMUNICATIONS: Reports $48M Consolidated Op Loss
ISIS COMMUNICATIONS: Chair Announces Streamlining Plans

C H I N A   &   H O N G  K O N G

CHINADOTCOM CORP.: Writes Off US$128M in Net Investments


DAYAMITRA: Sold To Telkom
SALIM GROUP: IBRA Unveils Asset Disposal Program for 2001
PABRIK KERTAS: S&P Raises to 'CCC-'; On Watch Negative
INDAH KIAT: Responds to Articles Re ABN Amro Demand
KASOGI INTERNATIONAL: FSPC Approves Debt Restructuring


DAIWA BANK: Denies Financial Woes
SEGA CORPORATION: Chairman Okawa Dies At 74


DAEWOO MOTOR: To Get W246.2B Loans From Banks
HYUNDAI GROUP: FSC Responds to Reports on Financial Aid
HYUNDAI ELECTRONICS: FSC Denies Prior Knowledge of Sale
HYUNDAI GROUP: FSC Responds to Media Coverage
DAEWOO ELECTRONICS: Debt-for-Equity Discussion Scheduled


L&M PILING: Fugro Geosciences Files Winding Up Petition
SALIM GROUP: KGB Proposes to Acquire Controlled Shares
MBF CAPITAL: Subsidiary Winds Up Voluntarily


NATIONAL POWER: Gov't To Assume Debts
MONDRAGON LEISURE: Creditor Banks To Take Over Mimosa


LIM KAH: Filed Voluntary Winding Up
ASIASTOCKWATCH.COM: Panpac Neg's with Possible Investor
ASIASTOCKWATCH.COM: To Cease Operations, Panpac Says


NATIONAL FERT: Round Two of Debt Restructuring Begins
NAKHON SAWAN: Court Rules Fees Reduction


NORMANS WINES: Restructuring To Bring Positive Outcome
Normans Wines Limited (ASX: NMW) announced on March 15, 2001 that
in addition to the previously announced strategic review and the
distribution of an information memorandum, the company is in an
advanced stage of negotiations on a number of matters, including:

     * A non-binding Heads of Agreement with Simeon Wines Ltd to
dispose of its Monash Winery and associated assets. This disposal
is consistent with Normans' commitment to exit the bulk wine
market and proceeds from the prospective sale will be used to
reduce debt and to support marketing and sales activities for
several of Normans' new brands locally and internationally.

     * The proposed merger with another wine company, and a
related capital-raise.

Announcements to the market will be made immediately upon
completion of negotiations.

In line with the new strategy, the board of directors of Normans
Wines reviewed the carrying value of all assets. This has
resulted in significant write offs and restructuring costs to
ensure a strong and sustainable platform for Normans' future. The
write offs are associated with the exiting of the bulk wine
business and total $5.8 million in inventory and other
adjustments. Interest expense for the period was $2.28 million.

Normans said in a press release that in addition, the write off
of intangible assets totaling $0.24 million and the loss on sale
of the Kuitpo vineyard of $0.73 million contributed to the
overall operating loss after tax of $10.2 million.  In arriving
at this result, the future income tax benefit of the tax losses
has not been recognized.

At an operating level, Normans' core business has returned an
Earnings Before Interest and Tax, Depreciation and Amortization
("EBITDA") loss of $201,375 from operations prior to writedowns,
compared to a loss of $1,798,984 on a comparative basis with the
previous period last year. This represents an improvement of

The company said core operations of the business have shown
significant improvement in sales on International and Australian
markets. Total sales revenue for the half year ended December 31,
2000 is $14.9 million compared to $13.2 million for the
corresponding period last year, an increase of 12.9 percent.

This encouraging trend has continued to mid-March, 2001. Total
branded sales for January and February 2001 were 136 percent
ahead of the same period last year: 256 percent for export and 73
percent for domestic sales.

Key highlights of the improved operating performance for the half
year ending December 31, are:

     * International sales are up 38.9 percent to $4.14 million,
with sales forecast at approximately $12 million by June 30,
2001, a 190% increase on the prior year.

     * Australian sales are up 9.6 percent to $8.23 million, with
sales forecast to be approximately $16 million by June 30, 2001,
a 15 percent increase on the prior year.

     * Gross margins have increased for both International and
Australian sales and further improvements are expected.

     * Operating expenses are down 12.4 percent from the prior

The turnaround of the branded bottle wine business is well
underway, as evidenced by the accelerated growth in sales and
enhanced margins into the second half.

Normans Wines has identified a number of key brands for
development, including Chandlers Hill, Lone Gum and Encounter
Bay. These brands have been repositioned in the market to meet
consumer demand, with the result being a number of new listings
in the UK and Australia.  

The strategy is to continue to drive Normans with a manageable
portfolio of easily identifiable brands with appealing shelf
presence and value for money.

During the half year the consolidated entity breached certain
covenants contained in its lending agreement with its principal
financier. As a consequence, the principal financier has placed
the facility on demand but has undertaken that it will not make
demand for repayment of moneys prior to September 28, 2001,
providing certain conditions are met.

Normans Wines said the company is currently not in breach of
these conditions as a result of the planned restructuring of the
business including asset sales and equity injections.

Accordingly the ability of the consolidated entity to pay its
debts as/when they fall due, and the appropriateness of adopting
a going concern basis of accounting, is dependent upon the
company continuing to meet the conditions as required by the

The majority of the principal financier's liabilities were
reported as current liabilities in the previous period, and
continue to be reported as current liabilities.

The significant restructure announced above coupled with the
turnaround in the trading performance of the company will ensure
Normans Wines returns to profitable trading as soon as possible,
the company said.

The board of directors and management are confident that the
restructured entity will enhance the improved trading
performance, particularly in international markets.

CENTAUR MINING: Appoints Receivers And Managers
Centaur Mining & Exploration Limited announced on Friday, March
16, 2001, the appointment of Allan Watson and David McEvoy, both
of PriceWaterhouseCoopers, as receivers and managers of the

HARTS AUSTRALASIA: Posts $8.15M Losses
Harts Australasia Limited executive deputy chairman Steve Hart
announced Friday an operating loss before interest, tax,
depreciation, amortization and abnormals of $8.154 million.

The company said this was an improvement over the previously
announced anticipated loss of $9.7 million.

The board has taken a conservative approach to the restructuring
of the property division and certain large debtors, with abnormal
items allocated a further $6.072 million, Harts said.

Company directors expressed confidence the company will return to
profitability, with such a return already budgeted for in the six
months ending June 30, 2001.

"While the result is disappointing, it is clear that the
restructuring strategy undertaken by the Board and management
earlier this year is already showing positive results. I am
confident that the worst is now behind us," Hart said,

Harts shares reportedly plunged to one-fifth their issue price on
news of the losses.

ISIS COMMUNICATIONS: Reports $48M Consolidated Op Loss
Isis Communications Limited reported a consolidated operating
loss after tax and abnormal items of $48.308 million. The
consolidated operating loss after tax and before abnormal items
amounted to $19.672 million with abnormal items amounting to
$28.636 million.

These results are subject to completion of Isis's audit.

Isis's directors have taken a prudent approach to the carrying
values of assets and development expenditure. Significant write-
downs across the group have contributed to the high level of
abnormal items.

The streamlining of the company over the past six months has
resulted in certain business activities being discontinued with
the associated write-downs of intellectual property, goodwill and
development items, Isis said.

The abnormal items include write-offs associated with
discontinued operations, redundancies, write-downs to recoverable
amount of continuing operations, and the World Reconciliation Day

Isis' directors expressed disappointment with the result. The
company has been going through a process of restructuring and
cost cutting over the past six months and the directors are
hopeful that those measures will produce better results this
year, Isis said.

ISIS COMMUNICATIONS: Chair Announces Streamlining Plans
Isis Chairman, B. Waters, announced in the Australian Stock
Exchange its streamlining plans. Thus:

"The company has been streamlining its activities over the past
six months and I am writing to keep you abreast of these matters.

"This streamlining has been required in order to focus more
closely on certain core businesses and to reduce emphasis on
Internet businesses, as well as in response to the changed
environment facing multimedia and Internet companies since April

"Your company has been concentrating its efforts on its
established Broadcast Media business, its Educational Content
businesses, and a smaller and more focused Internet business.

"Our Broadcast Media business played a role at the Olympic Games
by providing a range of outside broadcast services to the
American NBC, and at the recent Australian Open tennis. ISIS
Broadcast Media is also currently expanding its post-production
services to the film, television and advertising industries by
establishing a high definition post-production facility in
Sydney. This has already involved an investment of more than $3
million. It will be the first such facility in Australia and the
Company anticipates strong demand for these services.

"Planet Learning Pty Limited, our majority owned joint venture
company with the University of New South Wales had an encouraging
start in 2000, its first year as a commercial enterprise. Its
principal product, Planet English (a major English language
learning, interactive software program for use in language
colleges and universities throughout the non-English speaking
world) has shown sales growth in several countries including
China and Australia.

"Planet English is regarded internationally as a market leader in
its field and Planet Learning as a company is now entering an
exciting phase.

"XSIQ International Pty Limited (100 percent ISIS-owned)
experienced technical and market-related difficulties last year,
which delayed the roll out and sale of its interactive multimedia
product (comprising secondary school curricula content) to
schools and students. These matters have now been resolved and
the Company is actively marketing XSIQ to schools and students in
Australia. The Company also recently entered into a Memorandum of
Understanding with the Department of Education, Culture and
Sports in Manila, which should lead to the introduction of XSIQ
into the Philippines next year.

"XSIQ, which currently embraces 17 subjects for years 11 and 12
students and 3 core subjects for years 7 through to 10, has
received wide acclaim from teachers and Educational authorities.
We are obtaining a significant improvement in sales this year.

"The Internet business is now confined to ISIS3, the first stage
of which has been developed as an application service provider
and online business directory comprising a large number of small
and medium sized businesses throughout Australia.

"Each of these ISIS business units, except ISIS3, (which is at an
earlier stage but has interesting growth prospects), is expected
to be cash-flow positive this year.

"You will be aware that ISIS has been included, with many other
recently listed new media companies in press reports dealing with
the `cash burn' being experienced by this sector.

"To the regret of Directors, there have been some unscheduled
cash losses incurred through activities such as the Mandela World
Reconciliation Day event that was widely reported.

"However, cash has been used predominantly for productive
purposes including acquisitions, capital investment, product
developments, funding of business operations and debt reduction,
as well as for redundancies. For example:

* External debt in ISIS Broadcast Media has been reduced from an
excess of $12 million on acquisition by ISIS to its current sum
of approximately $3 million.

* ISIS Broadcast Media has recently invested in excess of $3
million in establishing a new high definition post-production
facility in Sydney to service the film, television and
advertising industries. Sales are to commence this year.

* XSIQ has recently completed the development of core subjects
for year levels 7 to 10 for sale this year.

* The development of the initial version of ISIS3 has recently
been completed following a period of capital investment and is
now generating revenues.

* Overall staff numbers in ISIS Group have been reduced
substantially over the past six months. These redundancies were
partly as a result of development work completing and partly due
to the closure of sub business units that had no material impact
on revenues.

"As you would be aware, the board has strengthened management
with the appointment of Peter Colby in the latter part of last
year as Chief Operating Officer with responsibility for all
Australian operations. CEO, Adam Radly is actively working on
business opportunities for the Company in the US market where we
have some important relationships.

"Your Company is in a phase of conserving cash and concentrating
on these core businesses with a view to a turnaround in
performance this year."

C H I N A   &   H O N G  K O N G

CHINADOTCOM CORP.: Writes Off US$128M Of Net Investments
Internet portal Chinadotcom  bore the full brunt of dotcoms'
"nuclear winter", writing off US$128 million of internet
investments and bad debt and recording a US$2.1 million dip in
revenues over the fourth quarter.  

The high-profile Asia Internet company, which runs the Web
Connection consultancy, and portals and a
string of internet-related companies, posted last week an annual
net loss of US$59.8 million, or 61 cents per share.  Its results
were scarred by the US$109 million write-off posted in the fourth
quarter, involving investments in boom-to-bust internet

The provision marred an otherwise profitable year for the
company, which reaped a windfall from its profitable flotation of and from interest payments from its US$443 million
cash pile.  

More worrying than the write-offs, the internet firm's fourth-
quarter revenue shrank to US$34.4 million from US$36.5 million in
the third quarter at a time when the industry had expected the
sector to take off.  And the firm said its revenues for the first
quarter of 2001 would shrink again - by a quarter to US$25.8
million, according to Reuters.  Not including the US$109 million
write-off, losses also widened over the quarter to US$24.2
million from US$22.7 million.

The firm  said  slower growth meant it would no longer break even
with cash flow this year. The drop in revenues mirrored similar
revenue slumps posted by other China portals, which blamed slow
online advertising sales.  

Chinadotcom repeatedly emphasized a pessimistic short-term
forecast in its results announcement, released late yesterday.
"Chinadotcom believes that the sector is likely to experience a
number of difficult quarters and further consolidation before it
gains the scale required to support companies currently in
operation and potential new entrants," the statement said.

"The downturn in the global economy, among other factors, may
delay the development of the internet industry in Asia.  
Competition within the sector is likely to lead to continuing
pricing softness. Chinadotcom expects sales and marketing costs
may continue to rise at least in the early part of 2001," it


DAYAMITRA: Sold To Telkom
PT Telekomunikasi Indonesia Tbk (Telkom) announced that it had
signed a Memorandum of Understanding to acquire 90.32 percent of
PT DayaMitra Telekomunikasi (DayaMitra), which is Telkom's
partner in the joint operating scheme (KSO) for the KSO Region VI

Telkom will pay US$121.93 billion for the 90.32 percent interest
in DayaMitra. DayaMitra has existing debt obligations of
approximately $US88.5 million.

Telkom expects to assume responsibility for a portion of the
debt. Telkom will make an initial payment of US$18.29 million
upon completion of the transaction, and will pay the remaining
amount in equal quarterly installments over a two-year period.

Following completion of the transaction, DayaMitra will be 90.32
percent owned by Telkom, with TM Communications (HK) Ltd. owning
the remaining 9.68 percent interest.

Completion of the transaction is subject to certain conditions,
including execution of definitive legally binding documentation
and the parties' obtaining necessary regulatory and corporate

Muhamad Nazif, President Director of Telkom said: "With the
signing of this MOU with DayaMitra, Telkom has reached agreement-
in-principle on the restructuring of two of its KSO joint
operating schemes. As with Telkom's earlier agreement to sell its
interest in the KSO for Region IV (Central Java) to Indosat, this
transaction demonstrates Telkom's ongoing commitment to the
restructuring and future growth of the Indonesian
telecommunications market. In addition, we believe that the
acquisition of DayaMitra, one of the most profitable KSO regions,
is a significant step in the current strategic repositioning of
our company."

For the fiscal year ending December 31, 2000, the KSO VI region
generated approximately R239 billion of MTR/DTR for Telkom and
approximately R238 billion of DTR for DayaMitra. The entire KSO
VI region operates 302,948 lines in service and has 361,481
installed lines.

Telkom was exclusively advised by Salomon Smith Barney.  

SALIM GROUP: IBRA Unveils Asset Disposal Program for 2001
The Indonesian Bank Restructuring Agency (IBRA) on March 13,
2001, announced the AMI (Asset Management Investment) Asset
Disposal Program for the year 2001. This asset disposal program
represents the continuation of a similar program announced in the
year 2000.

The 2001 Asset Disposal Program is an effort by IBRA to
contribute an estimated IDR 27 trillion in cash and IDR 10
trillion in bonds to the state budget. The AMI's division is
expected to contribute approximately IDR 9.9 trillion; while AMC
(Asset Management Credit) and BRU (Bank Restructuring Unit) are
expected to raise respectively IDR 12.2 trillion and IDR 3.6
trillion. The remaining amount is expected to rise from guarantee
premium of IDR 1.3 trillion.

The AMI division has underlined its strategy for year 2001 which
is not only to continue selling of other assets formerly owned by
ex-bank shareholders but also cash settlement from frozen banks
(BBKU) shareholders as outlined in the Shareholder Obligations
Settlement Program (PKPS).

AMI's asset under Holdco -- Holding Companies set up by IBRA for
assets pledged by former bankowners -- to be sold this year
consists of more than 75 companies. Of all these companies,
approximately 48 of them are under four holding companies while
the rest of 27 companies are non-holding companies. They are from
equity shares of ex-frozen banks (BBO/BBKU) in their subsidiary
companies that mostly are financial companies.

The list of assets which will be sold from the four holding
companies are: PT Holdiko Perkasa (Holding company which
accommodates assets of ex Salim Group) 28 companies ; PT Kiani
Wirudha (Bob Hasan), five companies ; PT Bentala Kartika Abadi
(Usman Admadjaja), nine companies; and, PT Cakrawala Gita Pratama
(Modern Group), seven companies.

In line with the principle of transparency, IBRA will make public
announcement on each of AMI's assets to be sold, including
information on the process and the phase of transactions to make
sure that all interested parties follow the asset disposal
process or at least to be well informed about the process and the
phase of those asset's disposal.

The four holding companies were established by IBRA in relation
to the shareholder obligation settlement scheme for shareholders
of each group of companies. As part of the settlement agreement
with IBRA, each group has pledged their assets to the holding

PABRIK KERTAS: S&P Raises to 'CCC-'; On Watch Negative
On March 2, 2001, Standard & Poor's raised its corporate credit
ratings on Indonesia-based forest products company, Pabrik Kertas
Tjiwi Kimia Tbk to triple-'C'-minus from 'SD' (selective

Standard & Poor's said it also raised its senior unsecured
ratings on the US$200 million and US$600 million notes issued by
guaranteed subsidiaries Tjiwi Kimia International Finance Co. B.V
and Tjiwi Kimia Finance Mauritius Ltd., to triple-'C'-minus from
'D', and to triple-'C'-minus from double-'C', respectively. All
ratings are placed on CreditWatch with negative implications.

The rating actions follow Tjiwi Kimia's payment of the US$13.25
million interest on the US$200 million notes within the 30-day
grace period, after the company missed the payment due date of
February 1, 2001.

The CreditWatch listing is in line with the ratings on parent
company Asia Pulp & Paper Co. Ltd. (CCC-/Watch Neg/--) and its
other operating subsidiaries and APP China Group Ltd, Standard &
Poor's said.  The subsidiaries include
     - P.T. Indah Kiat Pulp & Paper Corp. Tbk;
     - P.T. Pindo Deli Pulp & Paper Mills; and
     - P.T. Lontar Papyrus Pulp & Paper Industry.

Recent group tactics in response to growing liquidity problems
make each upcoming debt and dividend payment by the parent and
its subsidiaries uncertain, Standard & Poor's said.

INDAH KIAT: Responds to Articles Re ABN Amro Demand
PT Indah Kiat Pulp & paper TBK and PT Tjiwi Kimia Tbk, in a
release to the Jakarta Stock Exchange, posted a rejoinder to
articles published by Asian Wallstreet Journal regarding the
legal appeal against AAP, Indah Kiat, and Tjiwi Kimia, as
proposed by ABN Amro to the Singapore Supreme Court. The
rejoinder was also directed to the Exchange in regard to its
query on this issue.

It said: "On March 7, 2001, APP received letter from the counsel
of ABN AMRO asking APP to pay debt approximately of US$ 31
million within 21 days.

"On March 9, 2001, APP received again (an)appeal letter from
(the) lawyer of ABN AMRO that alleged APP, under its capacity as
guarantor of PT Indah Kiat Pulp & Paper Tbk, PT Pabrik Kertas
Tjiwi Kimia Tbk, and PT Pindo Deli Pulp And Paper Mills to pay
debt as they determined in (the) previous letter."

"Until today, Indah Kiat and Tjiwi Kimia have not received an
appeal letter from lawyer of ABN AMRO on this issue.

"However,"the company said, they have been (in) discuss(ions)
with ABN AMRO (to reach) a good solution."       

KASOGI INTERNATIONAL: FSPC Approves Debt Restructuring
PT Kasogi International Tbk reported to the Jakarta Stock
Exchange that the Financial Sector Policy Committee (FSPC) had
approved the company's proposition for debt restructuring.

The report was made through the Jakarta Initiative Task Force
(JITF) under the following plan:

Of the 49 percent of total liability of Indonesian Banking
Restructuring Agency (IBRA) to all existing creditors of US$15.3
million and R125.3 billion would be restructured as follows:
? 4.99 percent of principal borrowing is to be rescheduled on
investment credit within a period of five years with two
years' grace period.      
? 46.8 percent of principal borrowing is to be rescheduled on
convertible bond within a period of seven years. If it fails
to redeem at maturity, IBRA could have the right to convert
the remainder to equity.
? 48.93 percent of principal borrowing added with interest
liability to be rescheduled on debt-to-equity swap.   


DAIWA BANK: Denies Financial Woes
A spokesman for Osaka-based domestic bank Daiwa Bank Ltd denied
Thursday that the bank is falling into financial difficulties.  
The spokesman, who was not identified, told Reuters, "These
rumors in the market are totally irresponsible and groundless."  
He also denied the bank is planning to seek public funds.

International ratings agency Fitch had on Wednesday placed the
individual ratings of 19 Japanese banks on rating watch negative,
in response to growing concern over the impact of falling share
prices and lingering asset quality problems on the banks' capital
quality, performance and prospects.

Traders said vague rumors and the rating downgrade precipitated a
sharp fall in overseas stocks overnight, Reuters relates.  It
also dragged down shares in Daiwa Bank during early morning
trading in Tokyo Thursday.

Current accounting rules force banks to incur losses if the value
of the shareholdings reach their book value, and the Diawa
spokesman downplayed this, telling Reuters, "We've already
adopted the rule for a long time and we have thus conducted
necessary change in our stock portfolios, so that the rule would
hardly be a fresh threat."

SEGA CORPORATION: Chairman Okawa Dies At 74
Sega announced that on March 16, 2001 at 3:47 pm (Tokyo Time),
Isao Okawa, chairman and president of Sega Corporation, passed
away at the Tokyo University Medical Hospital due to heart

Okawa was born in Osaka, Japan in 1926. After graduating from the
prestigious Waseda University, he formed Computer Service, which
in 1968 became CSK.

In addition to his role at Sega and being an honorary chairman of
the CSK Corporation, Okawa was granted several honors by the
government for his efforts to aid and revitalize Japanese high-
technology companies.

He also received an honorary doctorate from his alma mater.

Over the years, Okawa demonstrated his personal commitment to
Sega Corporation. He spent about 10 billion yen ($81.6 million)
of his own funds in 1984 to buy a minority stake in Sega from
Gulf & Western Industries Inc., the former parent company of
Sega. He continued his personal involvement with Sega
Entertainment Ltd, by joining with David Rosen (the founder of
Sega in 1951) to buy the remaining Japanese assets of Sega.

In 1986 he took Sega public in Tokyo and New York. In the last
year he was a primary source of support for Sega, donating
personal assets valued at 135 billion yen ($1.281 billion).

As a visionary with unrelenting passion for Sega, Okawa was
integral in establishing the company as a leader in innovative
and compelling content.

Although Okawa had removed himself from a day-to-day managerial
position, he was still consistently acknowledged as an
inspiration to Sega's employees around the globe.

By integrating his love of games with his enthusiasm and
involvement with a range of cutting-edge technologies, Okawa
successfully mapped out the blueprint for the future of Sega.

Sega said that although Okawa's passing marks a sad day in the
company's history, his vision will continue to be carried on by
the numerous development teams he inspired to deliver the world's
paramount networked gaming content.


DAEWOO MOTOR: To Get W246.2B Loans From Banks
Domestic banks approved to grant bankrupt Daewoo Motor Company a
total of W246.2 billion in measures to buoy the company until
possible takeover, Dow Jones reported last week citing Korea
Development Bank (KDB), Daewoo's largest creditor. 58 percent of
the total amount will be directed to the repayment of bills
maturing in March, while the remaining portion will be used to
shoulder costs of operations.

The decision was made, Dow Jones said, in a creditors' meeting
held last week. The loan will compose part of the total W727.9
billion in loans that creditor banks planned to grant the company
by the end of June, said Mr. Yang of KDB.

In November, the Korean carmaker filed for court receivership
after it was declared bankrupt with an estimated debt of $10
billion. Earlier in the year, it received a total of W180 billion
in loans.

HYUNDAI GROUP: FSC Responds to Reports on Financial Aid
Korea's Financial Services Commission issued the following press
release on March 14, 2001:

In response to several news media reports that the decision by
Hyundai creditor banks to provide additional liquidity support to
Hyundai Electronics Industries Co. (HEI), Hyundai Engineering and
Construction Co. (HEC), and other Hyundai subsidiaries amounted
to the granting of special favors to the Hyundai Group, the FSS
verified the following issues with the creditor banks:

1. Financial Support to HEI and Progress of Self-Rescue Plan

Under a mutual agreement, the financial support to be provided by
the creditor banks to HEI can be divided into loans under credit
lines, ordinary loans and credit access, and syndicated loans.

During a series of meetings held between late-November 2000 and
mid-March 2001, the creditor banks agreed to restore HEI's credit
lines up to previous limits. For ordinary loans and credit
access, the creditor banks sought to resolve the liquidity
shortages experienced by HEI through extension of debt maturity.

However, due to protracted disagreements among several creditor
banks over their share of liquidity support, the creditor banks
convened an emergency meeting on March 10th in order to resolve
their differences and strike a new agreement concerning the
portion of liquidity support to be provided by each creditor

With regard to the syndicated loan that was lead-managed by
Citibank and announced on November 28, 2000, it should be noted
that only W800 billion of the original target of W1 trillion was
successfully raised due to the non-participation of several
creditor banks.  The decision to proceed with raising the
remaining W200 billion is entirely up to Citibank as the lead
manager of the syndicated loan. The FSS neither participated in
the March 10 creditor bank meeting nor engaged in any discussions
in regard to the meeting.

Meanwhile, the decision by creditor banks to provide liquidity
support to HEI was made on the strict condition that it would
fully execute the self-rehabilitation plan announced by the
Hyundai Group in January 2001.

The self-rehabilitation plan includes, inter alia, disposition of
properties, marketable securities and other assets valued at
W1.374 trillion. As of February 2001, HEI had disposed of assets
worth W19.1 billion.

2. Financial Support to HEC and Progress of Self-Rescue Plan

Between October 2000 and March 2001, creditor banks to the
Hyundai Group decided to provide US$400 million worth of payment
guarantees to Hyundai Engineering & Construction (HEC) in order
to enable the company to complete its ongoing overseas projects.  
However, the support measures were not implemented due to
disagreements among several creditor banks regarding their
portion of contributions to the payment guarantees.  At the March
10 meeting called by Hyundai main creditor, the creditor banks
were able to finalize each bank's respective share of the payment

The creditor banks thus re-affirmed their previous commitment to
the US$400 million payment guarantee at the meeting to help HEC
borrow overseas and complete their projects. In addition, the
Korea Development Bank and Korea Exchange Bank will each provide
a US$100 million bridge loan to HEC until the company can locate
an overseas lender for the US$400 million.

It should also be noted that the decision of financial support by
the creditor banks was made on condition that HEC agree to be
subject to self-rescue plans, due diligence, management
replacement, capital dilution of major shareholders, and debt-to-
equity swaps.

The progress of the self-rescue plan by HEC shows that, as of the
end of 2000, total fund-raising stood at W1,289.2 billion, or
about 84 percent of the original W1,545.5 billion target.  The
target for 2001 is W748.5 billion, of which W38.4 billion has
already been raised as of the end of February.

3. Additional Syndicated Loan Worth W200 Billion from Citibank

HEI selected Citibank as its financial advisor and sought to
arrange W1 trillion in won-denominated syndicated loans in order
to improve its capital base.  Due to the non-participation of
several banks, however, HEI was able to raise only W800
billion. The decision to raise the remaining W200 billion is
entirely up to Citibank, as the lead manager of the syndicated

4. Kumkang Mountain Tour Business of Hyundai Asan Corporation

The FSS is not aware of any additional financial support for
Hyundai Asan Corporation by financial companies. Any financial
support for Hyundai Asan Corporation is a matter to be decided by
the concerned individual financial institutions.

5. Ceiling on Export Financing on D/A Basis for HEI

The ceiling on export financing on documents against acceptance
(D/A) basis for Hyundai Electronics Industries (HEI) was set at
US$1,456 million as of the end of 1999. However, the ceiling was
essentially lowered to US$810 million as of end 2000 as several
creditor banks reduced their respective ceilings, which led to
liquidity shortages and difficulties with export activities at
HEI. The creditor banks convened a meeting on January 9, 2001 and
agreed to increase the ceiling on D/A-based export financing to
HEI by US$600 million in order to restore the previous ceiling of
US$1,400 million.

However, liquidity problems at HEI remain unabated, as several
creditor banks have not complied with the agreement. To resolve
this situation, the creditor banks met again on March 10 and
agreed to return to the previous credit ceiling for HEI. The
creditor banks also adjusted and finalized the relative portion
of credit access to be assumed by each of the creditor banks.

6. Plan for Issuing Depository Receipts

The plan for issuing depository receipts (DR) worth a total US$1
billion overseas by HEI is part of HEI's overall self-rescue
plan, which has been in progress since last year and led by its
financial advisor, Salomon Smith Barney, a unit of Citigroup.

HYUNDAI ELECTRONICS: FSC Denies Prior Knowledge of Sale
The following press release was posted on the Financial Services
Commission website on March 14, 2001 regarding the speculation
raised by The Chosun Daily over "anomalous support for Hyundai
Electronics Industries":

"With regard to the planned sale of waste disposal business units
by Hyundai Electronics Industries to France-based Vivendi Co.,
the FSC had no prior knowledge of the sale and the speculations
raised by the vernacular daily, Chosun Daily, that the government
intervened in the sale are unfounded and untrue."

"In order to determine whether any irregular or unfair support
was extended to HEI for the sale, the FSC questioned Hana Bank,
which is lead-managing the syndicated loan arrangement for the
purchase of the Hyundai waste disposal business by Vivendi
Company. According to Hana Bank, six banks agreed to participate
in the syndicated loan and contribute a total of W146.6 billion
towards the purchase, while Vivendi Company would contribute
W83.2 billion.

"It has been confirmed to the FSC that each of the six banks
decided to participate in the syndicated loan based on the
commercial merits. The banks participated in a competitive
bidding process for the syndication in consideration of its
profit potential and after conducting careful assessments of
business feasibility.

"The sale of the waste disposal units by Hyundai Electronics
Industries is a part of its self-rehabilitation plan, which was
announced on January 17, 2001. Vivendi Company was selected as
the preferred buyer due to a lack of interested domestic buyers.

"Participation by banks in similar projects or sales -- known as
acquisition financing -- is a common business practice in
financial markets and does not in any way represent anomalous
support for Hyundai Electronics Industries by the creditor

HYUNDAI GROUP: FSC Responds to Media Coverage
Creditor banks to the Hyundai Group convened an emergency meeting
on March 10, 2001 with executives from Hyundai Electronics
Industries, Hyundai Engineering & Construction, Hyundai
Petrochemical, and Hyundai's financial advisor, Salomon Smith
Barney, in order to discuss liquidity problems facing the Hyundai
units and to determine feasible methods to resolve them, the
Financial Services Commission said in a press release dated March
13, 2001.

During the meeting, the participants reaffirmed the viability of
the concerned companies and reviewed the progress of self-rescue
plans that are being implemented at each firm. In addition, the
creditor banks reaffirmed and finalized each bank's share of
liquidity support to Hyundai subsidiaries, which had been agreed
upon a few months ago.

At the request of the creditor banks, FSS representatives
attended the meeting only to ensure the implementation of follow-
up measures by the creditor banks and the Hyundai units, and not
to influence the creditor banks or their decision to extend
additional credits to the Hyundai companies.

1. The purpose of the meeting

The purpose of the meeting was to adjust and finalize the already
agreed specific share of liquidity support to be assumed by each
creditor bank, and to devise a timely implementation plan that
could mitigate market uncertainties surrounding the companies; it
was not to extend additional loans.

Between January and March 2001, the creditor banks had already
agreed to raise the purchase limit on export bills (on D/A basis)
by US$ 600 million for Hyundai Electronics Co. and to provide US$
400 million in credit guarantees to Hyundai Engineering and
Construction Co. However, both companies have been suffering from
liquidity shortages due to disagreements among the creditor banks
concerning the relative share of liquidity support that each
creditor bank had to assume.

2. The criticism of government interference

With respect to the Hyundai Group, the creditor banks voluntarily
held numerous meetings in the past and agreed to provide
financial support to Hyundai companies that were determined to be
more than viable.

However, due to the non-compliance of several creditor banks with
the agreement, through such actions as restrictions on new loans,
limits on fund usage, and reduced credit extension, Hyundai Group
companies have continued to suffer from liquidity shortages.  
Therefore, the meeting was held to ensure more appropriate and
timely liquidity support by all creditor banks to Hyundai

The FSS sent representatives to the meeting only at the request
of the creditor banks and to ensure that both sides took the
appropriate follow-up actions. There were no attempts made by the
FSS representatives to influence the creditor banks or their
decision to extend new credits to the companies.

3. The conflicts with the Continuous Credit-Risk Assessment

The Continuous Credit-Risk Assessment System, which went into
effect in March 2001, facilitated corporate restructuring on an
ongoing basis. The goal of the system is to ensure the early exit
of non-viable companies, while providing liquidity support to
viable companies in return for implementation of self-rescue

When creditor banks announced their credit risk assessment
evaluations of corporate borrowers on November 3, 2000, the
Hyundai subsidiaries were classified as being 'more than viable',
and the creditor banks agreed to provide liquidity support to the
companies on the condition of aggressive self-rescue and
rehabilitation plans.  As such, the creditor banks' decision to
provide liquidity support to the Hyundai units is consistent with
the Continuous Credit-Risk Assessment System.

DAEWOO ELECTRONICS: Debt-for-Equity Discussion Scheduled
Company and creditor sources said Tuesday last week that a debt-
for-equity arrangement is expected to be discussed at a
shareholders' meeting for Daewoo Electronics Co on March 23, Asia
Pulse said. The sources were not identified.

The debt-for-equity swap was put on hold at a shareholders'
meeting last year due to legal steps taken by small shareholders,
Asia Pulse said. The sources reportedly said that the company's
corporation articles may be amended at the shareholders' meeting
this month, allowing third-party allocation of new shares. This
in turn would allow a debt-for-equity arrangement.

The debt-for-equity arrangement was planned in late 1999 when
Daewoo was placed under a workout program, Asia Pulse said.


L&M PILING: Fugro Geosciences Files Winding Up Petition
In a reply to the Kuala Lumpur Stock Exchange dated March 14,
2001, L&M Corporation Berhad (LMCM) announced the following:

- a winding up petition by Fugro Geosciences (Malaysia) Sdn Bhd
was presented to the Shah Alam High Court on June 16, 2000 and
served to L & M Piling Sdn Bhd (LMP) on February 5, 2001;

- the amount claimed was RM5,175.36 (interest at 8% per annum
from April 4, 2000 until full settlement) being the balance
outstanding amount due and payable non payment rental of
machinery & services given by Fugro to LMP pursuant to the
consent judgment entered.

The company said LMP had already been wound up on June 1, 2000 by
Peeauto & Tractors Sdn Bhd. The winding up order was granted on
March 2, 2001.  LMP is wholly owned by LMCM.

In a succeeding letter to the KLSE dated March 16, LMCM said its
subsidiary LMP did not settle the claims. It said the petitioner,
Fugro Geosciences (M) Sdn Bhd might have filed the winding up
order due to ignorance of the first order made on June 1, 2000 by
the Kuala Lumpur High Court for Peeauto & Tractors Sdn Bhd and at
the time Fugro served the petition, LMP has already been wound

The cost of investment is RM3,630,000.00.

SALIM GROUP: KGB Proposes to Acquire Controlled Shares
The following announcement was posted on the Kuala Lumpur Stock
Exchange on March 13, 2001:

Reference is made to the announcements dated November 30, 2000
and December 14, 2000 pertaining to the Proposed Acquisition made
by Alliance Merchant Bank Berhad (formerly known as Amanah
Merchant Bank Berhad) on behalf of KGB, in relation to the
following conditional sale and purchase agreements (SPAs):

- The SPA entered into between KGB, PT Holdiko Perkasa, PT
Gemahripah Pertiwi and IBRA for the acquisition of the entire
issued and paid-up share capital of PT Salim Sawitindo and PT
Bhaskaramulti Permata; and

- The SPA entered into between KGB, PT Holdiko Perkasa, PT
Gemahripah Pertiwi and IBRA for the acquisition of the entire
issued and paid-up share capital of PT Minamas Gemilang and PT
Anugerah Sumbermakmur.

On behalf of KGB, Alliance is pleased to announce that the
requisite approvals for the Proposed Acquisition have been
obtained from the following:

(i) The Controller of Foreign Exchange of Bank Negara Malaysia
for the transfer of funds abroad to the vendors was obtained on  
December 12, 2000;

(ii) Badan Koordinasi Penanaman Modal (The Investment
Coordination Board of Indonesia) pertaining to the foreign
investment (by the KGB Group) in PT Salim Sawitindo, PT
Bhaskaramulti Permata, PT Minamas Gemilang and PT Anugerah
Sumbermakmur, was obtained on December 14, 2000; and

(iii) Ministry of Justice and Human Rights, Indonesia, in
relation to the amendments to the Articles of Association of the
Companies as regards to the change in the status of the Companies
becoming foreign capital investment companies, was obtained on  
December 18, 2000.

The letter of clarification from the Minister of Agriculture,
Indonesia, stating that there is no impediment for the KGB Group
to indirectly own the plantations of Holdiko Palm Plantations,
wasn obtained on  March 3, 2001.

KGB will seek shareholders' ratification for the Proposed
Acquisition at an extraordinary general meeting to be convened.

In compliance with the terms relating to the completion of the
Proposed Acquisition (defined as Closing in the respective SPAs),
arrangements for the disbursements of the funds for the
settlement of the total purchase consideration of US$368 million
has been made.

MBF CAPITAL: Subsidiary Winds Up Voluntarily
MBF Capital Berhad said in an announcement to the Kuala Lumpur
Stock Exchange dated March 16, 2001 that MBf Northern Sdn Bhd
(MBfNSB) (fka MBf Northern Securities Sdn Bhd), a wholly-owned
subsidiary of MBfC has been placed under Creditors' Voluntary

The company said Mr. Gan Ah Tee and Mr. Ooi Woon Chee have been
appointed jointly and severally as Liquidators of MBfNSB at a
Creditors' Meeting held on March 9, 2001.


MBfNSB was incorporated on June 15, 1973 as a stockbroking firm.
The authorised and paid-up share capital of MBfNSB are
RM400,000,000 and RM93,760,000 respectively.

On February 12, 1999, MBfNSB was placed under KPMG Corporate
Services Sdn Bhd, the Special Administrators (SA) Appointed by
Pengurusan Danaharta Nasional Berhad pursuant to Section 24 of
the Pengurusan Danaharta Nasional Berhad Act, 1998.

On October 2, 2000, the SA of MBfNSB had announced that MBfNSB
had entered into a Business Merger Agreement with PM Securities
Sdn Bhd (PMS) for the sale of its business and certain fixed
assets for a sale consideration of RM65.0 million.

With the completion of the sale and all relevant regulatory
approvals, MBfNSB had ceased its business operation on 9 February
2001 and the SA of MBfNSB has been discharged on 10 February

                  Rationale for the Winding-Up

MBfNSB cannot, by reason of its liabilities, continue its
business and obligation to the creditors, as such, it would be
appropriate to wind-up and distribute its other assets to the

                Financial Effect of the Winding-Up

The winding-up will not have any material effect on the Group.

The investment in MBfNSB has been fully provided for in the
financial year ending December 13,1998. The provision for
commitment and contingencies in respect of guarantees granted to
MBfNSB by the company have also been fully provided for in the
accounts, the press release said.


NATIONAL POWER: Gov't To Assume Debts
The government might carry out its plans to assume the
liabilities of the state-owned National Power Corporation
(Napocor) as its come-on to investors, Business Post reported.
This move is in line with the government's thrust to fasttrack
the sale of the utility firm to the private sector.

The Department of Finance, the report continued, has been looking
closely into these liabilities and sorting out how much of these
would the government shoulder.

This privatization, the report also said, was aimed to earn
revenues for the government.

The plan will have to be discussed among Finance Secretary
Alberto G. Romulo, Energy Secretary Jose Isidro Camacho, Budget
and Management Secretary Emilia Boncodin, and Socioeconomic
Planning Secretary Dante Canlas.

This assumption of liabilities by the state government was first
proposed last year by the Finance Department to Congress. In the
proposal, the government would take over Napocor's P250 billion
in outstanding debts, which amended a provision of a house bill,
the Electric Power Industry Reform Act, wherein the government
would only absorb P100 billion of Napocor's debts, leaving the
balance to private investors, World added.

Napocor has a total of P240 billion in stranded liabilities,
representing "take or pay" contracts.

The government is also considering a debt-to-equity swap where
new debts with Napocor investors will be paid off with shares.
The revenues generated from the firm's planned privatization will
also be used to pay for the debts, the World reported.

MONDRAGON LEISURE: Creditor Banks To Take Over Mimosa
Creditor banks of Mondragon Leisure and Resorts Corporation
(MLRC) are all set to take over the company's 235-hectare Mimosa
Leisure Estate in Clark Field, Pampanga, Business World reported.
MLRC owes its creditor banks a total of P5.93 billion in debts.

"They're (creditor banks) seriously looking at taking over the
entire property unlike before when they were only interested on
some aspects of it. At the moment, we're working with them to
come up with a workable financial plan and to identify an
operator to run it for them," said Rogelio Singson, outgoing
president of Clark Development Corp, as quoted in World.

The five creditor banks that have leasehold assignments are the
Metropolitan Bank and Trust Company, Far East Bank and Trust Co.,
Asian Banking Corp., United Coconut Planters Bank and Land Bank
of the Philippines.

Singson also added that the Mimosa property will not be put up
for public bidding because the creditors will have the choice as
to the third party that will run the firm, in case of default.

MLRC chairman Antonio U. Gonzalez said, in the World report, that
his company is still bent on resuscitating the business and pay
off its obligations. He also said that he would push for a
negotiation with CDC chairman Rizalino Navarro and president
Emmanuel Angeles.

Clark Development Corp. took over Mimosa in December, after Penta
Capital Investment pulled out of the venture, resulting from
Gonzalez' accusations about ownership issues that implicated
former President Estrada.

The Mimosa casino, before it was finally closed by the
government, used to generate roughly P100 million a month in
revenues, the World said.


LIM KAH: Filed Voluntary Winding Up
Substantial shareholder Lim Kah Ngam (Investment) Pte Ltd (LKNI)
informed Lim Kah Ngam Limited that the members of LKNI passed a
shareholders' resolution on March 19, 2001 to approve the
voluntary winding up of LKNI.

LKNI is a Singapore-incorporated company and currently holds
60,644,554 shares in the Lim Kah Ngam Limited, which represents a
shareholding of 30.88 percent. Details on the manner in which
LKNI proposes to distribute the shares of the company currently
held by LKNI will be made available at a later date.

ASIASTOCKWATCH.COM: Panpac Neg's with Possible Investor
Panpac Limited announce Monday that it is in
negotiations with a prospective investor regarding a possible
investment in the portal as a going concern.

The company has entered into an agreement with the prospective
investor granting it an exclusive option to consider the
viability of the investment for a period of two weeks.

Panpac said that pursuant to the terms of the agreement, the
board of directors has agreed to suspend the closure of the portal for a period of two weeks, pending the
outcome of the negotiations.

The board would however emphasize that the investment may or may
not materialize, and in the event negotiations with the
prospective investor are successful, the
portal will continue its operations.

ASIASTOCKWATCH.COM: To Cease Operations, Panpac Says
Panpac Limited announced March 12, 2001 that it planned
to cease operation of its financial portal in
Singapore and Malaysia Monday, March 19 at 6:00 p.m., if efforts
to sell the business as a going concern fail to materialize.

In arriving at the decision, the board of directors of the
company took into account the following factors:

- given its high operating cost and slow revenue growth, the
business would take a much longer period to achieve profitability
than expected;

- the substantial further investments that the company would have
to make to attain viability, and the impact it would have on the
Company's financial resources should it proceed with the
investments; and

- the prevailing weak and uncertain general outlook of the stock
markets and the internet industry.

In the event that ceases operation, remaining
or unused subscription fees paid by priority members will be
refunded, Panpac said.

The cessation of will result in a one-time
restructuring cost in the current financial year ending March 31,
2001 of $4.6 million.

This comprises mainly a full provision for write off of all fixed
assets relating to the business. This will effectively reduce the
company's net tangible assets by 2.3 cents per share.

With the cessation of operations of, the
company will focus its resources on its core magazine publishing
and exhibitions business and its internet-powered travel portal,, as a regional or global play in the travel sector
business, has shown greater promise than,
which is dependent on the domestic markets in Singapore and


NATIONAL FERT: Round Two of Debt Restructuring Begins
The Board of National Fertilizer Company (NFC) approved last week  
the company will push for a new round of debt restructuring to
ease its debt burden amounting to Bt10 billion, The Nation
reported. For this year, the company's management promised to
work toward profitability.

The approval of this proposition will be the company's second
shot at debt restructuring, after its first approved in December

Citing a source from the Finance Ministry, the Nation report said
that the decision came up after considering three options as
recourse, as follows: closure of NFC, debt-to-equity conversion,
or debt restructuring.

The latter was the primary option as concern to continue
operations weighted much, the report said. Its Bt9 billion
investment in its production facilities was the main

According to the Nation source, this new plan will include
capital write-off, debt restructuring, and capital injection. A
working committee has been created to study this plan.

However, to proceed with this plan the company will have to need
fresh capital infusion. "With a capital injection, NFC management
said the company would return to profitability by the end of this
year or early next year," the source told the Nation.

In 2000, NFC incurred a total loss of about Bt1.7 billion, as
brought about by high financial costs and the high selling price
of products.

NAKHON SAWAN: Court Rules Fees Reduction
Restructuring charges for Nakhon Sawan Industrial Company and
Kaset Thai Sugar and Thai Ekalak Company, as charged by plan
administrators, will be reduced to Bt35 million, as the Central
Bankruptcy Court ordered the reduction last week, Bangkok Post

The reduced amount is equivalent to only 45 percent of the
original fee, which amounted to Bt78 million initially charged by
South Sathorn Planner for the creation of the restructuring draft
alone, the Post added.

The planner is an affiliate of consultancy and auditing company
Deloitte Touche Tohmatsu.

The court order was made after the three ailing sugar firms asked
the court to act on this concern. The three firms had previous
applications for business rehabilitation. However, the Post
added, the rehabilitation plans did not meet the agreement of
creditors, compelling the court to cancel their request in
October 1999.

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. Lyndsey Resnick,
Ronald Villavelez, Maria Vyrna Nineza, Editors.

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

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