---

T R O U B L E D   C O M P A N Y   R E P O R T E R

            A S I A   P A C I F I C

   Tuesday, December 28, 1999, Vol. 2, No. 252
                

              Headlines

*C H I N A  &  H O N G  K O N G*

HANNY HOLDINGS: Suspends Trade on Takeover Speculation


*I N D O N E S I A*

NAPAN GROUP: Bad Debts Reach US$ 405.4 Mln
PT SINAR SLIPI SEJAHTERA: IBRA Confiscates Soeharto Family Assets


*J A P A N*

NIPPON STEEL: To Lift Group Pretax Gain 160% in FY02


*K O R E A*

DAEWOO CORP: Foreign Creditors Reject Buyout Proposal
DAEWOO CORP: May Go Under Court Receivership
DAEWOO MOTOR: GM Intends to Assume Third of Debt
DAEWOO MOTOR: Will Be Sold Through Limited Competitive Bidding
KOLON GROUP: To Spend $ 442 Mln on New Projects
KOREA FIRST: Newbridge Leads Way with Korean Bank Purchase


*M A L A Y S I A*

MYCOM: Hopes to Complete Restructuring by June 2000


*S I N G A P O R E*

GOLDTRON: Creditors Accept Plan
HOUR GLASS: Corrections and Clarifications
LION ASIAPAC: To Pack Up Container Unit
THAKRAL CORP: Thakral's $58.9m loss hurts shares

*T H A I L A N D*

FINANCE ONE: Pin blasts arrest as abuse of UK court


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

HANNY HOLDINGS: Suspends Trade on Takeover Speculation
------------------------------------------------------
Trading in shares of Hanny Holdings, a floppy-disk and computer-
accessories maker, asked for its shares to be suspended following
speculation the company would become the listed flagship of
Cheung Kong (Holdings)' Internet activities.

The speculation has helped Hanny's share price jump 45 per cent
in the past week.

Its share last traded at HK$5.50 on Wednesday.

Sources said Hanny would change its name to I-bank and would
raise HK$125 million through a sale of new shares.

Reports said Hutchison Whampoa and Cheung Kong (Holdings) would
sell 130 million Hanny shares at HK$5 each, and then repurchase
65 million new shares at the same price.

The two companies' combined stake would fall to 23 per cent from
35 per cent.

In November, Hanny bought seven Internet-related investments from
ITC Corp for US$71 million, paid for with a two-year convertible
debenture. (SCMP 24-Dec-99)


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

NAPAN GROUP: Bad Debts Reach US$ 405.4 Mln
------------------------------------------
JAKARTA -- The Indonesian Bank Restructuring Agency (IBRA) has
announced that Napan Group is the country's seventh largest
debtor with non-performing debts totalling Rp2.98 trillion (US$
405.4 million).

IBRA Loan Work Out and Collection Division Head Irwan Siregar
said the total value of the non-performing debts handled by IBRA
so far represent 50% of total debts of Napan Group reaching
Rp5.499 trillion.

Napan Group, with shareholders consisting of prominent
businessmen such as Sudwikatmono, Henry Pribadi, Ibrahim Risjad
and Peter F. Gontha, controls 15 subsidiaries, namely Polyprima
Karyareksa, Polypet Karyapersada, Surya Citra Televisi, Megarimba
Karyatama, Adhikarya Nirmala, Bali Perkasa Sukses, Niagatama
Arsaraya, Pan London Sumatera, Pensindo Lubritama, Duta Perkasa
Unggulestari, Indocitra Finance, Arcom Primantara System, Nusadua
Alamindah, Bali Nusaintan, and Intinusa Selareksa.

The restructuring of Polyprima's debts is expected to be settled
in early 2000. Presently IBRA has requested the company to
approve the appointment of Lubis Ganie Surowidjojo as legal
adviser.

IBRA, together with other creditors have also requested that the
company agree to the appointment of Price Waterhouse Coopers as
independent accountant.

The restructuring process of Polypet also made substantial
progress, despite facing several hurdles where IBRA is forced to
re-evaluate various assumptions for restructuring, considering
the recent unfavourable prices of its products.

As for subsidiary Surya Citra Televisi (SCTV), presently a debt
restructuring agreement formula is being prepared.
(Asia Pulse 23-Dec-99)


PT SINAR SLIPI SEJAHTERA: IBRA Confiscates Soeharto Family Assets
-----------------------------------------------------------------
JAKARTA -- The Indonesian Bank Restructuring Agency (IBRA)
Tuesday confiscated seven plots of land totalling 14 hectares
owned by the eldest daughter of former president Soeharto Siti
Hardiyanti and her husband Indra Rukmana in West Jakarta.

The plots of land were assets of PT Sinar Slipi Sejahtera (SSS),
of which Hardiyanti and her husband are respectively president
and chief commissioner.

This is the first time that the IBRA, by virtue of Government
Regulation number 17 of 1999, has taken such a drastic measure.
SSS, engaged in the property business, has been one of IBRA's
least cooperative debtors.

The company obtained a money market credit from state-owned Bank
Pembangunan Indonesia (Bapindo) in 1996, that was later turned
into working capital amounting to Rp 433.112 billion and US$
45.204 million.

The credit has been considered a bad debt since September 18,
1996, and Bapindo had sent a first reminder on September 30,
1996, and a third one on October 10 the same year.

However, SSS never responded to the reminders, although it was
trying to settle the bad debt by accepting a new investor, PT
Tridan Satriaputra Indonesia.

However, no significant progress was ever made in the settlement
of the bad debt, apparently due to differences between the old
investors.

IBRA is still assessing the value of the assets, but the mortgage
value of the seven plots of land amounted to Rp216.8 billion.

The agency will check on the assets of the company's
shareholders, and if no other assets were found, further legal
action may be taken for which the shareholders will be
responsible.

The board members of SSS include three directors, namely Bambang
Soeroso, Tito Sulistio and Mohamad Jarman.
(Asia Pulse 23-Dec-99)


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

NIPPON STEEL: To Lift Group Pretax Gain 160% in FY02
----------------------------------------------------
TOKYO -- Nippon Steel Corp (TSE:5401) plans to boost consolidated
pretax profit for the year through March 2003 by 160% to 180
billion yen (US$ 1.75 billion) from an estimated 70 billion yen
for the current term, the company announced in its three-year
management plan released on Tuesday.

Japan's top steelmaker also plans to cut group interest-bearing
debt by 500 billion yen during the period.

The Japanese firm had hoped to compete with South Korea's Pohang
Iron & Steel Co at rates of 100 yen and 800 won to the dollar.

But the recent plunge in the value of the Korean currency has
made this difficult to achieve.

"We will try to become more cost-competitive than Pohang," Nippon
Steel President Akira Chihaya said. The company's plan is
predicated on an exchange rate of 105 yen and 1,080 won to the
dollar, the current level.

Nippon Steel has also decided to put group companies under the
wing of its divisions. "Each division will be judged based on its
return on assets," said the president.

A chief financial officer will be appointed to strengthen
relations between the parent and its group companies.

The group will use increased profit, more efficient use of
operating capital and revenue from asset sales to reduce debt by
500 billion yen.

Nippon Steel will also consider the possibility of integrating
its stainless steel business with that of Nisshin Steel Co.
(TSE:5407). The two steelmakers set up a joint planning company
for stainless steel operations in July.
(Asia Pulse 22-Dec-99)


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

DAEWOO CORP: Foreign Creditors Reject Buyout Proposal
-----------------------------------------------------
SEOUL -- The Committee of Foreign Bank Creditors of the Daewoo
Group rejected Wednesday a proposal to buy out the claims of
foreign creditors sent by Daewoo advisors and domestic creditors.

The committee said the proposal did not reflect the fact that
Daewoo companies have operated as a single entity, which is
unreasonably disadvantageous to foreign creditors.

"The buyout proposal is based upon the workout plans which has
been made under the assumption that each of the Daewoo companies
has operated as an independent corporation," the committee said
in a press release.

"However, Daewoo Group companies have operated, in fact, as a
single economic entity in respects of funding and management."

"As a result, a substantial portion of the borrowing by Daewoo
Corp (and its overseas subsidiaries) has been used to support the
funding of other affiliates of Daewoo Group companies."

It also doubted the credibility of financial information
contained in the buyout proposa, saying past financial statements
of Daewoo companies which failed to reflect major off-balance
sheet transactions worth billions of U.S. dollars were
inaccurate.

The English-language translations of the debt workout plans and
due diligence reports that were promised by Dec 15 were not
submitted, it said, calling for access to sufficient financial
and accounting information.

Domestic creditors and the Corporate Restructuring Coordination
Committee (CRCC) have warned to put Daewoo Corp. under court
supervision if foreign creditors reject the buyout proposal.
(Asia Pulse 22-Dec-99)


DAEWOO CORP: May Go Under Court Receivership
--------------------------------------------
SEOUL -- The possibility of Korean giant Daewoo Corp. (KSE:
03810) being placed under court receivership is growing amid its
worsening debt and asset situations, and the subsequent larger
burden on its creditors.

Announcing the results of the final audit of the debt-ridden
company Wednesday, creditors said Daewoo's debt figures after
being put under the debt workout have grown worse.

The difference is so large that the initial debt workout plans
need to be reset, including the extent of the manageable debt
limit of 6 trillion won (US5.3 billion) after switching 18.7
trillion won of outstanding debts including convertible bonds to
equity.

The gap arose from the first and mid-term audits and is way over
the initial difference target of 10 percent. Creditors must now
decide whether to accept the difference or not.

The greater difference indicates a larger amount of loss sharing
for creditors.
(Asia Pulse 22-Dec-99)


DAEWOO MOTOR: GM Intends to Assume Third of Debt
------------------------------------------------
SEOUL -- General Motors has told creditors of Daewoo Motor that
it can assume one-third of the troubled Korean automaker's debts,
the Wall Street Journal reported Wednesday.

If GM does so, it would take on 6 trillion to 7 trillion won (US$
6.18 billion) worth of Daewoo's debts estimated to total 18.6
trillion won.

GM Executive Vice President Lou Hughes said negotiations with the
government and Daewoo creditors could be wrapped up between 30 to
45 days, the report said, adding the talks so far have been
progressing well.

Though not disclosing the exact debt figures that GM would
assume, Huges said his company can bring Daewoo's debt-to-equity
ratio within the range of 6:4 after the takeover.

GM plans to transform Daewoo facilities into a base for medium-
to low-priced sedans and sports utility vehicles with Daewoo's
design and production know-how and GM's marketing strategy
following the takeover.

Saying he "understands" the opposition in Korea against the
takeover, Hughes warned that the negotiations could drag on until
the general elections in April.
(Asia Pulse 22-Dec-99)


DAEWOO MOTOR: Will Be Sold Through Limited Competitive Bidding
--------------------------------------------------------------
SEOUL -- Korea's Financial Supervisory Commission (FSC) said
Wednesday that Daewoo Motor would be sold through a limited
competitive auction.

FSC spokesman Kim Young-jae said the government decided against
holding an open bidding.

Under the auction, creditors will receive letters of intent from
potential buyers and select the one who offers the most favorable
terms as the exclusive negotiating partner, a process seen to
give General Motors an edge over its competitors.

Kim said the open auction method used to sell Kia Motors (KSE:
00270) took too much time and involved the leak of corporate
secrets.

A government source, meanwhile, said GM has a high chance of
becoming the exclusive negotiation bidder unless other buyers
present far better terms given Daewoo's recent talks with the US
auto giant.

The government will receve letters of intent from buyers next
month or February, sign a memorandum of understanding soon after
it deems terms favorable and proceed with negotiations.
(Asia Pulse 22-Dec-99)


KOLON GROUP: To Spend $ 442 Mln on New Projects
-----------------------------------------------
SEOUL -- The Kolon Group will spend 500 billion won (US$ 442
million) over the next three years to finance projects related to
the Internet, information technology, bioengineering and venture
companies.

Of the total, about 300 billion won will go to Internet projects
including a Web portal servivce and financing, e-commerce and
information technology, said Kim Joo-sung, in charge of the
group's restructuring efforts.

Kolon will spend $ 60 million to develop tissue gene, an agent to
treat retrogressive rheumatism and damaged ligaments, and set up
a bioengineering R&D centre next year, he said.

The group will streamline its 15 affiliates into three core
operations: textiles and chemical manufacturing, distribution and
information service and construction, environment and leisure.

Kolon said its recent sale of a 23.53-percent stake in Shinsegi
Telecomm will help reduce its debt ratio to 157 percent from 335
percent at the end of last year.

The conglomerate earned over 1 trillion won through the sale of
its interest in Shinsegi, sources said.
(Asia Pulse 23-Dec-99)


KOREA FIRST: Newbridge Leads Way with Korean Bank Purchase
----------------------------------------------------------
Newbridge Capital, the US private equity fund, on Thursday became
the first foreign owner of a South Korean bank by signing a final
contract to acquire 51 per cent of nationalised Korea First Bank
for Won500bn ($442m).

The deal is expected to improve Korean banking standards by
introducing foreign competition into the long-protected sector,
which has suffered from poor credit assessment practices.

The contract was signed nearly two years to the day after the
International Monetary Fund stipulated the sale of troubled Korea
First to foreign investors as part of its $58bn rescue package
for Korea.

Newbridge said Korea First, which has mainly lent to big
conglomerates, will focus on the less-developed small business
and retail banking sectors dominated by such successful Korean
banks as Kookmin, Housing & Commercial and Shinhan.

Wilfred Horie, who recently served as head of international
operations for Associates First Capital, a large US home equity
lender, was appointed president of Korea First.

Robert Bauman, a former president of American Savings Bank, was
appointed chairman and Kim Chul-su, a former deputy director-
general of the World Trade Organisation and Korea's former trade
and industry minister, is vice-chairman.

Newbridge bought American Savings more than a decade ago, and
went on to sell it for a profit. It is expected to do the same
with Korea First, although Newbridge has indicated it wants to
keep control for at least five years.

Korea First, the nation's largest bank until a year ago, nearly
collapsed in 1997 after loans to the Hanbo steel and Kia car
groups went sour. The government nationalised the bank and
injected nearly Won7,000bn.

The bank still ranks as one of Korea's top five, with 336
branches and 4,800 employees.

Newbridge said it may inject another Won200bn in Korea First over
the next two years depending on the bank's performance.

It will also assume all of Korea First's loans that are part of
corporate debt-workout programmes, including those to the
insolvent Daewoo group. But the government will be responsible
for any resulting bad loans until the end of 2002.

Newbridge will sell bank assets it does not want to the Seoul
government for Won1,600bn. The government will receive warrants
entitling it to a 5 per cent non-voting stake in Korea First in
the next three years to improve chances of recovering state funds
if the bank's value rises.

Newbridge, which signed an initial takeover agreement in December
1998, finalised purchase terms for Korea First in September
shortly after government negotiations collapsed on the sale of
Seoulbank to HSBC Holdings, the UK financial group, because of
pricing differences.

The IMF said nationalised Seoulbank should also be sold to
foreign investors.
(Financial Times 24-Dec-99)


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

MYCOM: Hopes to Complete Restructuring by June 2000
---------------------------------------------------
KUALA LUMPUR -- Mycom Bhd, a diversified Malaysian group, has
submitted a restructuring proposal to the country's Corporate
Debt Restructuring Committee (CDRC) and expects the program to be
completed by June 2000, said group managing director Yap Yong
Seong.

Speaking to reporters after Mycom Bhd and Olympia Industries Bhd
annual general meetings here Wednesday, Yap said the proposal was
now pending approval from all the relevant authorities.

He, however, declined to reveal details on the ongoing process of
the scheme.

Meanwhile, chairman Jaffar Abdul said in his statement that with
Mycom finalising negotiation with bankers to restructure its
financial position, the gearing of the group would be reduced.

For the financial year ended June 30, 1999, Mycom group's
consolidated turnover correspondingly suffered a 55 percent drop
with pre-tax loss reported at RM382 million (US$ 100.79 million),
compared with RM393 million previously.

The losses were mainly from interest charges and all the
provisions of doubtful debts in the financial services companies
as well as dimunition in value in investments both at the Olympia
and Mycom level.

Mycom's investments in the financial services sector were mainly
driven by Jupiter Securities in the Olympia Group, of which Mycom
previously held 60.61 percent stake.

And, due to collateral sale by bankers to reduce debt balances
towards the end of the financial year under review. Mycom's
holding in Olympia was reduced below 50 percent.

As such, he said, Olympia was no longer a subsidiary though
management control still rested with Mycom.

However, Jaffar said he was confident that both the property and
financial services would record further growth in the coming
year.

Meanwhile, Olympia posted a group pre-tax loss of RM267.186
million in its financial year ended June 30, 1999 against
RM197.836 million in 1998 while the group turnover slipped to
RM241.902 million from RM505.761 million.

Its chairman Abdul Hamid Omar said in his statement contained in
the company's 1999 Annual Report, Olympia's operations reflected
the difficult operating conditions in 1999.
(Asia Pulse 23-Dec-99)


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

GOLDTRON: Creditors Accept Plan
-------------------------------
A scheme to get ailing Goldtron Ltd out of debt has been approved
by creditors, paving the way for Goldtron to be debt-free by the
first quarter of next year.

Creditors met yesterday to vote on the supplemental scheme of
arrangement, proposed by white knight Mohd Taufik Abdullah to
Goldtron and its scheme manager, Nicky Tan of Arthur Andersen.

Of the 54 creditors that were present and which represented
$345.8 million of Goldtron's debt, 52 voted for the scheme. The
ones in favour represented $342 million, or 98.9 per cent of the
represented debt at the meeting.

Goldtron has some 25 creditor banks and 100-odd trade creditors,
and total debt of about $375 million, including $106 million in
inter-company loans.

The supplemental scheme is legally binding on all creditors if a
majority in number representing three fourths in value of the
debt, voting in present or by proxy, is in favour of it.

The scheme now awaits the approval of the High Court as well as
company shareholders. "We hope to be able to complete this in
February or early March," Mr Tan told reporters after the
meeting. "I certainly believe that we have gone past the last big
hurdle to restructure Goldtron. This is a new beginning."

The scheme calls for Mr Taufik, a prominent Malaysian
businessman, to invest $65 million in return for 1.3 billion new
Goldtron shares or 55 per cent of its enlarged capital. Creditors
will have 12 per cent of their loans returned in cash and the
other 88 per cent in new shares.

Mr Tan and Goldtron chairman S K Ong both expressed confidence
that shareholders would approve the scheme. Said Mr Ong: "This
scheme rids us of all debt, it's most beneficial to shareholders
to vote for it."

Having been "released from this burden", a relieved Mr Ong can
now focus on restoring the health of Goldtron's business.

He said Goldtron's core component distribution business in
Singapore, Malaysia, Taiwan, China, Hongkong and Thailand would
be a "good business to continue" given that electronics demand is
set to boom.

Its other core business, contract manufacturing, could "expand
quite rapidly" with a fresh infusion of capital. Most of its 26-
28 lines are running at full capacity, he said.

"So the outlook is quite bright, even without the introduction of
new businesses," said Mr Ong, who said he would "dedicate"
himself to implementing the scheme and boosting the company's
value.

He declined to give a timeframe for the introduction of new
businesses or elaborate on what these might be, saying the
company would examine options "seriously" in the next 12 months.

"First and foremost, we want to get ourselves out of debt, and we
would like the core business to grow, then we will discuss it,"
he said. "I promise not to make any more pagers. Whatever it is,
we will try our best to make money, OK?"

The company's fortunes were dragged down by fierce competition in
the manufacture of pagers and handphones. This division has since
been shut down.
(Singapore Business Times 24-Dec-99)


HOUR GLASS: Corrections and Clarifications
------------------------------------------
In a report from Dec. 23 titled, 'Hour Glass goes deeper into red
with $7.1 million loss', group turnover for the six months ended
Sept 30, 1999, was $135.8 million and not $19.9 million. The
smaller figure was the increase in turnover from the previous
corresponding half-year.  
(Singapore Business Times 24-Dec-99)


LION ASIAPAC: To Pack Up Container Unit
---------------------------------------
Lion Asiapac is planning to terminate its Malaysia-based dry
cargo container business which has a net book value of $28.9
million. Outlining the reasons for the decision, the motorcycle
maker said the container division's contribution to turnover has
been falling from 36 per cent in 1997 to 25 per cent in 1998 and
to 15 per cent in 1999. The business also posted a pre-tax loss
of $267,000 in 1999. Lion Asiapac said the division's performance
is not likely to improve as it expects stiffer price competition.
Efforts to merge the business with other industry players have
also failed. (Singapore Business Times 24-Dec-99)


THAKRAL CORP: Thakral's $58.9m loss hurts shares
------------------------------------------------
Thalkral Corp shares were sharply lower yesterday after the
company announced an interim net loss of $58.88 million for the
six months to September. Analysts recommend the stock be avoided
until a turnaround in the company's earnings becomes clear.
Thakral closed 12.5 cents, or 28 per cent, lower at 31.5 cents
yesterday after 2.9 million shares changed hands.
(Singapore Business Times 24-Dec-99)


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

FINANCE ONE: Pin blasts arrest as abuse of UK court
---------------------------------------------------
A Thai financier, wanted over the collapse of one of the
country's top finance firms, has accused Bangkok authorities of
abusing the British justice system.

Pin Chakkapak is fighting extradition from Britain to Thailand
after last week being granted bail of o2 million (about HK$24.97
million) by London's Bow Street Magistrates court.

Pin said Thai authorities had issued a misleading arrest warrant
when they asked British police to detain him on charges of
stealing two billion baht (about HK$412.8 million) while
president of Finance One.

"At the bail hearing the Thai Government . . . informed the court
that they had no evidence that I had stolen any money and they do
not make any allegation of personal gain by me for the loans we
made at Finance One," he said.

"Saying that I had stolen two billion baht from Finance One was
misleading to the British authorities and an abuse of the British
courts.

"I have maintained that I would not receive a fair trial and the
issue of the warrant confirms this."

Pin had been on the run for a year before his arrest in London
earlier this month.

Pin has refused to return to Thailand, saying his case is
politically motivated.

Finance One was ordered to close in June 1997 and became one of
the first victims of the economic crisis which swept across Asia.

The firm owes the central bank's Financial Institutions
Development Fund 47.5 billion baht, while Pin and two other
company executives are accused of embezzling more than two
billion baht. (SCMP 24-Dec-99)

S U B S C R I P T I O N  I N F O R M A T I O N

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Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
DC USA. Darryl Henning, Managing Editor, Felix Ordona and
Cristina Pernites, Editors.

Copyright 1999.  All rights reserved.  ISSN: 1520-9482.

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                * * * End of Transmission * * *