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

                             A S I A   P A C I F I C

            Tuesday, January 11, 2000, Vol. 3, No. 7

                                     Headlines


* C H I N A  &  H O N G  K O N G *

FAIR FUND INDUS.(GROUP) LTD: Facing winding up petition
FAR EAST LAMINATORS LTD: Facing winding up petition
INT'L AGRI TRADE CO.LTD: Facing winding up petition
LINK WEALTHY ENGINEERING LTD: Facing winding up petition
MATSUNICHI INT'L HOLDINGS LTD: Facing winding up petition
XIAN CHEMICAL PLANT: Debt-for-equity swap mandates changes


* I N D O N E S I A *

PT MODERNLAND REALTY: In debt-for-equity swap with IBRA
PT TIRTAMAS COMEXINDO: President denies insolvency
PT ZEBRA NUSANTARA: Negotiating debt-for-equity swap


* K O R E A *

CHUNGCHONG BANK: Ex-president to face compensation claim
DAEWOO CORP.: Lands crucial Delhi contract
DAEWOO MOTOR: Sale procedure set up by creditor banks
DAEWOO MOTOR: Ford Motor seeks local alliance for takeover
DAIDONG BANK: Ex-president to face compensation claim
DONGHWA BANK: Ex-president to face compensation claim
DONGNAM BANK: Ex-president to face compensation claim
KYONGGI BANK: Ex-president to face compensation claim


* M A L A Y S I A *

DATUK DKH HOLDINGS: Sells Asia Inc. Magazine stake at loss


* P H I L I P P I N E S *

EYCO GROUP: Creditors ask SEC to appoint liquidator
NATIONAL POWER CORP.: Seeks gov't guarantee for bond float
NATIONAL POWER CORP.: Meralco-Duracom would hurt Napocor
NATIONAL STEEL CORP.: Seeks moratorium on Russian steel
PRIME BANK: Gov't approves placement under receivership
PRIME BANK: Prime Bank placed under PDIC watch
RURAL BANK OF SAN MIGUEL: Cites BS's delayed rescue


* S I N G A P O R E *

CLOB INTERNATIONAL: CDP status extended for 6 months


* T H A I L A N D *

DAIWA FINANCE CORPORATION: In debt restructure negotiations
KARAT SANITARYWARE PLC: Rehab to return profits in 3 yrs.
KRUNG THAI BANK: Bt40M loan furor called "gamesmanship"
TANAYONG PLC: Still fighting debt situation
THAI TEL. & TEL.: Close to debt deal with creditors


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

FAIR FUND INDUS.(GROUP) LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for February 9 on the petition of
Cheung Pui Fong for the winding up of Fair Fund Industrial
(Group) Limited. A notice of legal appearance must be filed
on or before February 8.

FAR EAST LAMINATORS LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for January 19 on the petition of
Far East PCB Limited for the winding up of Far East
Laminators Limited. A notice of legal appearance must be
filed on or before January 18.

INT'L AGRI TRADE CO.LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for January 26 on the petition of
Bangkok Bank Public Company Limited for the winding up of
International Agri Trade Co. Ltd. A notice of legal
appearance must be filed on or before January 25.

LINK WEALTHY ENGINEERING LTD: Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for February 16 on the petition of
Tse Kin Wah for the winding up of Link Wealthy Engineering
Limited. A notice of legal appearance must be filed on or
before February 15.

MATSUNICHI INT'L HOLDINGS LTD: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for January 19 on the petition of
Paciwood Music & Entertainment Corp. for the winding up of
Matsunichi International Holdings Limited. A notice of
legal appearance must be filed on or before January 18.

XIAN CHEMICAL PLANT: Debt-for-equity swap mandates changes
----------------------------------------------------------
Martial songs from the revolutionary opera Red Detachment
of Women still summon workers back from lunch at the Xian
Chemical Plant but these days the factory is marching to a
different tune. It is a pioneer for what could be China's
boldest experiment with capitalism in more than 20 years.
The heavily indebted plant is being bailed out in an
innovative debt-for-equity swap.

Banks are converting doubtful loans to the plant worth some
616 million yuan (HK$577.2 million) into shares in the
business and will be free to sell that stake to domestic
investors or even foreigners.

"The aim of the new company is to make money and give
shareholders reasonable returns," said Xian Chemical's
deputy general manager Jin Peikun, a Shanghai-born chemical
engineer.

He shies away from using the politically-loaded word
"privatisation" but his state-owned enterprise could one
day be up for sale to the highest bidder.  So, too, could
600 other state loss-makers which received Beijing's
blessing to join the experiment last year.

For the national experiment to work, the money-losing
enterprises will need top-to-bottom restructuring to make
them profitable. Whether enterprise managers have the
stomach - or skills - to make that happen is questionable.
There are plenty of sceptics who see debt-for-equity swaps
as a fancy name for a socialist hand-out.

Even the official China Market Economic News said some
enterprises would view the arrangement as "free cake" and
slip out of their loan obligations "like a cicada shedding
its skin. . . . If the enterprises pin their survival hopes
on debt-for-equity swaps rather than efforts to improve
management, they are truly not far from death," said the
newspaper.

Shawn Xu, head of research at China International Capital
Corp, a Morgan Stanley Dean Witter joint venture, said
companies were "keen to do the swaps but extremely
reluctant to reform. It only gives them a legitimate way to
default," he said.

Still, Xian Chemical management insists their factory is
about to undergo a revolution.  Workers have been busy
painting over the old socialist slogans at the factory
gates that once exhorted workers to "Study Marx, Lenin and
Mao Zedong Thought" or "Serve the People."

Asked what the new slogans would say, factory foreman Song
Xian said: "We haven't decided yet."

Xian Chemical was founded in 1958 during the early years of
China's industrialisation program when technology and aid
were still pouring in from the former Soviet Union.  Its
main products include caustic soda, hydrochloric acid and
polyvinyl chloride.

It is a measure of how warped the socialist economy has
become that the higher Xian Chemical's debts piled up, the
more honours were showered on it. In 1997, while it was
well on its way to bankruptcy, it was declared a "Model
Enterprise."

But like many Chinese state enterprises, it existed as much
to provide welfare for its 4700 workers as to earn profits
and pay taxes to the state.  Early last year, Xian Chemical
closed its doors, staggering under liabilities of 700
million yuan and slumping sales of its mainstay caustic
soda triggered by floods of cheap smuggled imports.

Mr Jin's plans for a corporate turnaround sound beguilingly
simple.  The plant's social functions, such as providing
schooling and hospital care for workers and their families,
are to be taken over by the state.  And the factory is
adopting a startling new approach to buying raw materials:
instead of paying above-market prices to state monopoly
suppliers, as it has done for decades, it has organised a
Price Appraisal Committee to get value for money.

As a result, said Mr Jin, the cost of producing calcium
carbide used to make plastic has dropped by 30 per cent.
But the most painful reform is yet to come.  After the
factory's debt-to-asset ratio has been lowered from 90 per
cent to a more manageable 40 per cent, the workforce will
have to be slimmed down and top management replaced.

The new bank shareholders in Xian Chemical, and other
beneficiaries of debt-for-equity swaps, are not, in truth,
banks themselves.  They are so-called asset management
firms they have set up and staffed with their own people to
take over their bad debts.  The management companies are
based on the US Resolution Trust Corp, which picked up the
pieces from the collapse of the savings and loans
institutions.  These companies will nominate new board
members for Xian Chemical.

Whether former state bankers have the right skills to sort
out the mess created by their own reckless lending remains
to be seen.

"They couldn't manage their clients well before, so how can
they be expected to do any better now?" asked an official
with the People's Bank of China.

At Xian Chemical, workers are just as dubious. "The
leadership won't change much," said one worker. "They're
changing the label but not the medicine."  (Hong Kong
Standard  08-Jan-2000)


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

PT MODERNLAND REALTY: In debt-for-equity swap with IBRA
-------------------------------------------------------
Debts of Indonesian PT Modernland Realty Tbk (JSX:MDLN) to
the Indonesian Bank Restructuring Agency (IBRA) worth
Rp393.220 billion (US$ 56 million) are reportedly to be
converted into equity in view of the company's financial
difficulties.

In a statement, the Modernland management said that the
company had negotiated with IBRA about the best way to
effect debt restructuring through equity conversion.

Modernland debts to IBRA originated from credits granted by
a number of banks taken over by IBRA, such as Bank Danamon,
Bank Tabungan Negara, Bank Putra Surya Perkasa, Bank
Modern, Bank Mashill and Bank Uppindo-Pormes.  Modernland
also owes about Rp175.608 billion to a number of non-IBRA
bank creditors and mid-range obligations totalling Rp$ US33
million.

Debts coming from credit facilities have been granted by
Bank Internasional Indonesia, Bank Artha Pratama, Bank
Ganesha, Bank Finconesia, UNibank, Bank Guna, Bank Alfindo,
Bank Global, and Bank Harda.

According to Modernland management, debts with non-IBRA
creditors will be settled by transferring plots of land in
2000, but since this credit facility depends on the
syndication of a number of banks now under supervision of
IBRA, the process has not yet been determined.

In view of the coutry's improving security, stable exchange
rate and decreasing deposit interest rates, Modernland,
which is active in real estate and property, is confident
that the property business will gradually improve.
Modernland still retains a number of property projects,
including Kota Modern in Tangerang sub-district (770 ha),
Taman Modern in East Jakarta (48 ha), Bukit Modern in
Tangerang (60 ha) and Modern Jakarta in East Jakarta (500
ha).  (Asia Pulse  07-Jan-2000)

PT TIRTAMAS COMEXINDO: President denies insolvency
--------------------------------------------------
The president of Indonesian PT Tirtamas Comexindo Hashim
Djojohadikusumo denies his company in insolvent, despite
the claim to that effect lodged by that Indonesian Bank
Restructuring Agency (OBRA) last 30 December 1999 at
Jakarta Commercial Court.

"Based on the initial mutual understanding, IBRA was to
give Tirtamas up to the end of January 2000 to settle its
financial obligations," Tirtamas general manager & head of
corporate relations Janus Hutapea said in a press release
here yesterday. "We are in the process to prepare a
compreensive settlement proposal of our obilgations to IBRA
before the expiry date of 31 January 2000."

According to Janus, Tirtamas is eager to settle all its
obligations to IBRA. "We hereby sincerely hope IBRA can
withdraw the insolvency claim," he said.  (Asia Pulse  06-
Jan-2000)

PT ZEBRA NUSANTARA: Negotiating debt-for-equity swap
----------------------------------------------------
PT Zebra Nusantara (JSX:ZBRA) hopes to convert Rp13.33
billion (US$ 2 million) of its debts into equity in
negotiations with its creditors.

The plan, however, is yet to be proposed to its
shareholders when it holds a shareholder meeting on Jan.
18.  The ZBRA management said by December 13, 1998, the
company's debts including interest totaled Rp57.89 billion.
Zebra Nusantara is the largest taxi operator in East Java.
(Asia Pulse  07-Jan-2000)


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

CHUNGCHONG BANK: Ex-president to face compensation claim
DAIDONG BANK: Ex-president to face compensation claim
DONGHWA BANK: Ex-president to face compensation claim
DONGNAM BANK: Ex-president to face compensation claim
KYONGGI BANK: Ex-president to face compensation claim
--------------------------------------------------------
The Korea Deposit Insurance Corp. (KDIC) plans to execute
temporary seizure and damage compensation claims to the
presidents of five liquidated banks. KDIC said the five
presidents include Lee Jae-jin, former president of Donghwa
Bank, Huh Hong, former president of Daidong Bank, Huh Han-
doh, president of Dongnam Bank, Suh Yi-suk, president of
Kyonggi Bank, and Yoon Eun-jung, former president of
Chungchong Bank.

KDIC cited these bank presidents' negligence of their
duties as the reason for the punitive measure. KDIC is also
said to be considering to take the same measure against one
or two additional bank presidents who had been appointed
since 1996 but were not at their posts at the time of the
bank liquidation. KDIC said that all these former bank
heads will likely face huge damage compensation claims as
they must each take full and ultimate responsibility for
the poor management of their banks. (Digital Chosun  09-
Jan-2000)

DAEWOO CORP.: Lands crucial Delhi contract
------------------------------------------
Daewoo Corp, the most indebted unit of Daewoo Group, has
won an US$84 million order from India, helping increase its
chances of avoiding liquidation.

The company said the order from National Hydro Power is to
build the first stage of construction for a hydro-electric
plant in Dhauliganga, north of capital New Delhi.  It is
the first overseas order since Daewoo Corp and 11 other
Daewoo units, which have $73 billion of debts, turned to
creditors last July to reschedule debts.

"This first order we've won since our debt problems erupted
suggests overseas customers' confidence in our expertise,"
the company said.

Daewoo Corp needs orders to avoid liquidation as creditors
are divided as to whether they should provide more
financial aid or push it into receivership.  This order
will help Daewoo Corp convince creditors it is a viable
business.

The company last year won $884 million in overseas orders,
compared with an average of $2 billion a year in the 1990s
before the start of the Asian financial crisis in 1997.
Daewoo Corp said it won the project in India by forming a
consortium with Kajima of Japan.  The Japanese contractor
will conduct supervisory services and Daewoo will take
charge of construction.

Shares of Daewoo Corp have risen 14 per cent this year,
compared with a 7.7 per cent drop in the benchmark Kospi
stock index. (South China Morning Post  10-Jan-2000)

DAEWOO MOTOR: Sale procedure set up by creditor banks
-----------------------------------------------------
The Korea Development Bank, major creditor bank of Daewoo
Motor, yesterday set up an office dealing with takeover
proposals for the ailing auto manufacturer.

The office located at the headquarters of the Daewoo Group
is staffed by approximately 30 professionals from creditor
banks, Daewoo Motor, Samil Accounting, Morgan Stanley, and
a local law firm.

The timetable for the international auction stated that
interested parties would be asked to submit proposals, or
letters of intent, by early March.  Local Banks, supervised
by financial regulators, then will select one bidder by
March 15, signing a memorandum of understanding which will
grant exclusivity.  The two sides will sign a final
contract by the end of June, KDB said.

KDB said earlier that creditor banks will give fair
opportunities to all potential bidders, whether foreign or
local, as long as they are competitive.  Foreign auto
giants including GM, Ford and DaimlerChrysler are seeking
an opening in the Daewoo Motor deal along with local
conglomerates Hyundai and the Samsung Group.

A financial report stated that Daewoo Motor has assets of
13 trillion won ($11.5 billion) against 18 trillion won
($16.5 billion) in debts. (Korea Times  07-Jan-2000)

DAEWOO MOTOR: Ford Motor seeks local alliance for takeover
----------------------------------------------------------
Ford Motor Co. is seeking to form a consortium with a South
Korean partner to bolster its chance of winning a bidding
race to take over Daewoo Motor Co., a news report said
Friday.

The report came as the world's two biggest car makers, US-
based Ford and rival General Motors Corp. (GM), appeared to
be locked in tough competition to take over the bankrupt
Korean firm.  The Korea Economic Daily quoted Paul Drenkow,
who is leading a Ford delegation in Seoul, as saying Ford's
interest in acquiring Daewoo Motor was no weaker than that
of GM.

"We will do a local alliance with a Korean company,"
Drenkow told the daily following talks with officials of
the Korea Development Bank (KDB) on Wednesday.

A senior KDB official said Drenkow had asked the bank, a
main creditor of Daewoo Motor, to allow Ford to form a
joint bid with a South Korean partner to take over Daewoo
Motor.  Drenkow also expressed Ford's willingness to offer
better conditions than General Motors', especially in terms
of job security for Daewoo Motor employees and respect for
its corporate culture, the KDB official said.

Other news reports said Hyundai Motor Co., South Korea's
dominant automaker, was the most likely candidate for the
alliance with Ford.  Officials of Hyundai Motor did not
rule out the possibility of the alliance, but stressed
Hyundai would be interested only when it would be granted
management control.

South Korean creditors are expected to sell some 70 per
cent of Daewoo equities while holding the rest, waiting for
Daewoo Motor to be rehabilitated and its share price to
rise after the company goes public.  Daewoo has debts of
some 18.6 trillion won (16.4 billion dollars) against 12.9
trillion won (11.4 billion dollars) in assets, according to
a due diligence result published in August last year.

The competition for Daewoo Motor came as France's Renault
announced it was negotiating exclusively to buy another
bankrupt South Korean automaker, Samsung Motors Corp., in
order to extend its Asian presence. (China Daily  08-Jan-
2000)


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

DATUK DKH HOLDINGS: Sells Asia Inc. Magazine stake at loss
----------------------------------------------------------
Brunei businessman Timothy Ong Teck Mong said he bought 80%
of Hong Kong's Asia Inc. magazine, marking the third sale
of the regional business publication since 1997. Seller,
Malaysia's Datuk DKH Holdings Bhd., appears to be taking a
big loss.

The deal comes on the heels of the closure of a huge movie
studio near London by DKH's 24%-owned affiliate, George
Town Holdings Bhd.  Mr. Ong is deputy chairman of Brunei's
National Insurance Co. and this year's chairman of the
Asia-Pacific Economic Cooperation forum's business advisory
council. His family has extensive business interests in the
oil-rich sultanate.  Officials of the two companies didn't
respond to requests for comment.

After paying a little more than US$1 million for the
magazine stake in July 1998, DKH said late last month that
it would unload it for just US$50,000.  Mr. Ong will assume
an undisclosed level of Asia Inc. debt and says that he
will transform the magazine's Asia-inc.com Internet site
into a portal offering information and e-commerce.

"I will be bringing long-term financial stability, he said.

Mr. Ong also plans to stop the magazine's publication for
three months and relaunch it in April. He will name a new
publisher, but will retain its editor, William Mellor. The
magazine has never made money, claiming unaudited
circulation of around 67,000 and employing only a dozen
staffers.

Thai investor Sondhi Limthongkul launched Asia Inc. in 1992
in his effort to build a regional media conglomerate, also
including a now-defunct Bangkok-based newspaper, Asia
Times.  His Manager Media Group PCL appeared on the way to
achieving its goals until the Thai baht collapsed in 1997.
Asia Inc.'s staff, led by Mr. Mellor, bought control of the
publication from Mr. Sondhi in October 1997.

But Hong Kong's recession, brought on by the high level of
the local currency, made a quick turnaround difficult and
the staff sold 80% control to the DKH-George Town group
less than a year later. The staff retained 20%.

George Town has quietly closed its huge Leavesden Studies
near London, which were used during the production of
blockbuster films including "Star Wars - Episode I" and
"Titanic."

The company said it may rebuild the studios and may have
other development possibilities at Leavesden, but plans for
a movie them park there have been deemed "not viable,"
according to the studios.  The pullback is partly related
to Malaysia's currency controls, chiefly the exchange rate
and the difficulty of getting money out of the country,
according to a former senior adviser to the group. (The
Asian Wall Street Journal  07-Jan-2000)


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

EYCO GROUP: Creditors ask SEC to appoint liquidator
---------------------------------------------------
The consortium of creditor-banks for the EYCO group of
companies which inlcude appliance maker Nikon Industrial
Corp. is asking the Securities and Exchange Commission
(SEC) to appoint a liquidator to ensure an orderly disposal
of the company's assets.

In its supplemental motion with the SEC, the creditor-banks
said the appointed liquidator will protect and preserved
the remaining assets of the EYCO group.  Aside from a
liquidator which will be chosen from a list of names to be
provided by the consortium, the creditor-banks also want
the SEC to issue a writ of execution that will enable them
to enforce the regulatory body's order to start the
liquidation of the company's assets.

The banks requested the SEC to also implement the
following: order the conservator committee to cease from
operating and consequently to desist and refrain from
acting on behalf of the EYCO group, including causing the
withdrawal, use dissipation; order the EYCO group to stop
transferring or selling assets in favor of any person or
any juridical entity, whether creditor or not; authorize
the consortium banks to safeguard and take into custody the
company's assets pending appointment of a liquidator.

EYCO is fighting its creditor banks which earlier filed a
motion with the SEC urging it to issue a writ of execution
order which will authorize the consortium banks to
safeguard and take into custody the company's assets
pending appointment of a liquidator.

The banks insisted this is possible even if the Court of
Appeals has yet to issue its ruling on the petition of EYCO
for a TRO.  EYCO Group earlier appealed to the CA for a TRO
and subsequently, a writ of injunction, saying the SEC
decision was erroneous and was a grave abuse of discretion
since it lacked jurisdiction in rendering the decision. It
added the SEC gave the order to liquidate the assets
without any valid authority from its creditors. (The
Philippine Star  08-Jan-2000)

NATIONAL POWER CORP.: Seeks gov't guarantee for bond float
----------------------------------------------------------
National Power Corp. has asked the Department of Finance
for a government guarantee on its planned $500 million
worth of Yankee bond float in the first quarter.

Finance Undersecretary Joel Ba¤ares said Napocor has
informed the department it would need the guarantee soon to
back up the bond issue whose proceeds would be used to pay
off the power firm's loans and finance several projects
this year.  Ba¤ares said the DOF would push through with
its planned $500 million or roughly Y50 billion borrowing
this year to further shore up national government funds.
He said the department was also expecting another $500
million in loans from the Asian Development Bank and the
World Bank.

DOF had said there was sufficient funds for the year as a
result of its aggressive fund raising efforts last year.
The department had initiated several bond floats last year.
"We are sufficiently covered this year and the department
would continue to raise funds when necessary," said
Ba¤ares.

Ten foreign banks have been short-listed by Napocor to help
facilitate the power firm's $500 million worth of bond
issuance in the US in the first quarter.  The list includes
Salomon Smith Barney, JP Morgan, Lehman Bros., Warburg
Paribas, Morgan Stanley, ABN-Amro, Hong Kong Shanghai Bank,
Chase Manhattan, ING Bank and Merrill Lynch.

Napocor would use $300 million of the proceeds to replace
maturing loans while $200 million would be used to help
finance its planned capital investments of P19 billion next
year. Of the $300 million, about $200 million would be used
to refinance bonds issued seven years ago that would mature
next year, and the remaining $100 million would be used to
pay for another maturing loan next year.

PNOC Energy Development Corp. is also poised to tap the
Miyazawa facility this year for a $200-million loan which
would be used to repay maturing loans.  (Philippine Daily
Inquirer  07-Jan-2000)

NATIONAL POWER CORP.: Meralco-Duracom would hurt Napocor
--------------------------------------------------------
The National Power Corp. (Napocor) stands to lose P1.3
billion per year (or P3.6-million per day) in revenues if
the Manila Electric Co. (Meralco) signs an agreement with
independent power producer (IPP) Duracom Power.

Meralco has reportedly approached Duracom for the
continuation of its services as a direct IPP after the
latter's supply contract with Napocor (through East Asia
Power expired in May last year.

"The Meralco need up to 3,600-MW and Napocor can definitely
supply that volume as there is an over capacity right now,"
energy sources said. "And why should Meralco buy more
expensive power from Duracom when they can acquire energy
from Napocor?"

Duracom operates several diesel-fired power barges in the
Philippines. Two of its power barges were utilized by East
Asia Power for its contract with Napocor for the past years
until the contract expired last may 1999. Napocor did not
renew the contract as there was already an excess capacity
in the Luzon Grid.

Napocor officials said electricity from the diesel-fired
Duracom units will cost P1.70 to P1.90 per kilowatt-hour
(kwH) while that from the coal -fired plants is only P0.62
per kwH.

"Using these oil-fired units would further increase the
country's fuel imports inspite of the fact that we have
lower cost options like coal and other indigenous
resources. This runs counter to our policy of promoting the
use of indigenous resources and providing power at the
least cost," Napocor said. (The Philippine Star  07-Jan-
2000)

NATIONAL STEEL CORP.: Seeks moratorium on Russian steel
-------------------------------------------------------
The country's largest steelmaker, National Steel Corp. is
asking the Department of Trade and Industry to impose a
one-year moratorium on Russian steel shipments into the
country.

In a letter to Trade and Industry Secretary Jose T. Pardo,
Ibrahim Bidin, chairman of the interim management committee
of NSC, appealed to the government to immediately adopt the
provisions of the US-Russia suspensions agreement against
the importation of Russian steel into the country. NSC
stated that the continuing surge of unfairly traded Russian
imports is now bleeding the local steel industry out of
existence.

NSC brought to Pardo's attention the latest development in
the moves of the US government to address dumped Russian
steel products. On July 12, 1999, the Ministry of Trade of
the Russia Federation agreed to sign a suspension agreement
that addresses concerns about the dumping of hot-rolled
steel products into the United States.  The trade
suspension agreement includes a complete moratorium on all
shipments for one year, a quota for four subsequent years,
and a minimum price provision.

NSC stated that the new development regarding the agreement
reached by both US and Russia in addressing the injury of
dumped hot rolled steel to the US steel industry is a very
clear indication of a world recognition of the trade of
Russian hot rolled steels at dumped prices.

"Even the Russians themselves through their Ministry of
Trade now recognize the dumped prices. As an example, the
Russians agreed to have minimum price of $255 per metric
ton FOB for hot rolled steel. This means that the Russians
will not price the hot rolled steel they sell to the US at
prices below $255/MT (excluding freight cost). However, hot
rolled steel from Russia has been and still is coming in
our country since last year at prices even below $190/MT
C&F!" NSC said.

NSC has shut down its operations since last Nov. 7 and is
now facing foreclosure proceedings from its creditor banks.
(The Philippine Star  08-Jan-2000)

PRIME BANK: Gov't approves placement under receivership
-------------------------------------------------------
The Monetary Board, the highest policy making body of the
Bangko Sentral ng Pilipinas (BSP), approved yesterday a
resolution placing Prime Bank under receivership of the
Philippine Deposit Insurance Corp. (PDIC) effective
yesterday.

PDIC representatives are now conducting an examination of
the records of Prime Bank and an inventory of its assets
and liabilities in preparation for the payment of insured
deposits of the bank.  The duration of the examination well
depend on the condition of the bank's records.

Prime Bank depositors are advised that payments of loans
and other obligations to the bank should be made only to
the PDIC deputy receiver. The PDIC has cautioned all
depositors and borrowers of Prime Bank that former officers
and employees of the closed bank are no longer authorized
to transact business with them.

Any inquiries regarding Prime Bank deposits and loans must
be directly addressed to the deputy receiver holding office
at the bank premises or to the PDIC at 2228 Chino Roces
Ave., Makati City.

Prime Bank depositors will be advised through radio
announcements and newspaper publications of the date when
PDIC will start acception claims for insured deposits.
Prime Bank has 61 branches all over the Philippines and a
head office in Greenhills, San Juan.  Total deposit
liabilities of the bank was placed at P3.2 billion.  (The
Philippine Star  08-Jan-2000)

PRIME SAVINGS BANK: Prime Bank placed under PDIC watch
------------------------------------------------------
More than seven months after temporarily closing its doors,
Prime Savings Bank (Prime Bank) was placed under the
receivership of state deposit insurer Philippine Deposit
Insurance Corp. (PDIC).

This was after negotiations with the Manila Banking Corp.
(Manilabank), interested buyer of the troubled thrift bank,
collapsed for unknown reasons. Manilabank earlier agreed to
buy the thrift if the Bangko Sentral (Central Bank of the
Phils.) would shoulder Prime Bank's 1.4 billion Philippine
pesos (US$34.6 million at PhP40.472:US$1) out of PhP1.8
billion ($44.4 million) in bad loans.

Manilabank executives could not be reached for comment over
the weekend.  In a statement, the PDIC said it has taken
over the operations of Prime Bank effective last Friday
after it was designated as the receiver of the thrift bank
by the Monetary Board, the policy making body of the Bangko
Sentral, by virtue of Monetary Board Resolution 22.
PDIC now has 90 days to decide whether it would
rehabilitate or liquidate Prime Bank.

PDIC said its representatives are currently examining the
records of Prime Bank and conducting an inventory of its
assets and liabilities in preparation for the payment of
the insured deposits.  "The duration of the examination
will largely depend on the condition of bank records. The
clients of the bank are advised that payments of loans and
other obligations to the bank should be made only to the
PDIC deputy receiver," the PDIC said.

It also advised Prime Bank depositors and borrowers that
the closed bank's former officers and employees are "no
longer authorized to transact business with them."

Any inquiries regarding their deposits and loans,
therefore, must be directly addressed to the deputy
receiver holding office at the bank premises or to the
PDIC, it said.  "Depositors will be advised through radio
announcements and newspaper publications of the date when
PDIC shall start accepting claims for insured deposits,"
the PDIC statement said.

Prime Bank has 61 branches nationwide and a head office in
Greenhills, San Juan. Total deposit liabilities were
estimated at PhP3.2 billion ($79 million), the PDIC said.
Prior to Prime Bank's bank holiday, it was having
difficulty beefing up its capital to meet the Bangko
Sentral's increased capital requirements.

The thrift bank's capital accounts as of March 26, 1999 was
already negative. It stood at a negative PhP222.47 million
($5.5 million), further sinking from PhP34.04 million
($840,000) as of December 24, 1998.   The Bangko Sentral
requires thrift banks within Metro Manila to have at least
PhP250 million ($6.2 million) in capital by December 24,
1998; PhP325 million ($8 million) by end-1999; and PhP400
million ($9.9 million) by end-2000.

The bank had PhP4.279 billion ($105.6 million) in total
assets as of March 26 last year and PhP4.501 billion
($111.2 million) in total liabilities. Total deposits stood
at PhP4.21 billion ($104 million) at the time. (Business
World  10-Jan-2000)

RURAL BANK OF SAN MIGUEL: Cites BS's delayed rescue
---------------------------------------------------
Troubled Rural Bank of San Miguel (RBSM) recently blamed
bad publicity and the Bangko Sentral's (Central Bank of the
Phils.) alleged failure to grant its request for an
emergency loan "at the right time" as reasons for its
declaration of a bank holiday last week.

In a January 3 letter to Bangko Sentral Gov. Rafael
Buenaventura, RBSM chairman Sedfrey A. Ordoez and
president Hilario P. Soriano said the rural bank faced a
liquidity problem due to the central bank's "inability to
come to the financial assistance of RBSM, notwithstanding
the emergency appeal of various sectors in averting a
nationwide banking crisis".

In its official statement posted at its 15 branches in
Bulacan, the bank's board of directors said what started as
a simple request for financial assistance to "shore up its
year-end liquidity in anticipation of possible withdrawals
due to Y2K fears, has been negatively and maliciously
played up in the print media, which led to simultaneous
withdrawals by the bank's depositors."

The statement was posted in RBSM's branches, together with
newspaper clippings on the financial health of RBSM days
before the January 5 bank holiday.  Photocopies of the
bank's official correspondence with President Joseph
Estrada and Bangko Sentral officials were also posted in
the branches to inform bank clients about the events that
led the bank to temporarily close shop.

RBSM also claimed its clients' panic withdrawals was
aggravated by the Bangko Sentral's refusal to grant the
rural bank an emergency loan.  In his letter to Mr.
Estrada, the Bangko Sentral, however, argued that
"emergency loans totalling 375 million Philippine pesos or
US$9.3 million at PhP40.472:US$1 (the maximum allowed by
law) have already been granted (to) the bank to answer for
its liquidity needs which started as early as March 1998."

In the letter, Mr. Buenaventura said the loans were made in
"several tranches, the latest of which was the PhP12.631
million ($312,000) released on December 30, 1999."

RBSM has already exhausted the maximum financial assistance
that the Bangko Sentral could extend under the law,
including the use of its overnight clearing facility, he
said.  He also said the collateral pledged by the rural
bank in exchange for the Bangko Sentral loan has already
been exhausted.

"Most of its assets acceptable as collateral have already
been used to secure the emergency loans. Its request for a
special credit facility in addition to the emergency loans
could not be granted for it has no basis in law," Mr.
Buenaventura said.

Although RBSM claimed to have delivered the collateral to
the central bank to support its loan request, none of the
collateral submitted was eligible, the central bank chief
said.  He also refuted the claims of Messrs. Ordo¤ez and
Soriano that the central bank delayed the processing of the
loan collateral.

In their letter, Messrs. Ordo¤ez and Soriano said the
central bank denied the loan request even if RBSM was able
to deliver the required collateral worth PhP75 million
($1.85 million) on December 28,1999 at 1:30 p.m. The two
said the Bangko Sentral recorded the receipt of the
collateral only at 6 p.m. that day.

Mr. Buenaventura said the Bangko Sentral "went out of its
way" to process RBSM's request by assigning 22 personnel
from its Loans and Credits Department to process the
collateral delivered by RBSM at 2 p.m. The personnel
reportedly finished validating the collateral at 9 p.m.

RBSM, founded in 1962, has 15 branches in Bulacan, with
total assets of PhP956.9 million ($23.6 million) as of end-
1998. Its total loans reached PhP518.9 million ($12.8
million) while total deposits hit PhP551.1 million ($13.6
million). It was capitalized at PhP98.9 million ($2.4
million).

On the last week of December, the bank said it informed the
Bangko Sentral that it stood to lose PhP160 million ($3.9
million) in depositor withdrawals, potentially rising to
PhP300 million ($7.4 million) before yearend, if 100
depositors from its 15 branches made good their plan to
withdraw their funds.

This prompted the bank to ask the Bangko Sentral to avail
of a PhP300-million emergency loans before December 31,
1999 to meet its financial difficulties.  Mr. Buenaventura,
however, said in his letter to Malaca¤ang, that RSBM's
"solvency, liquidity and profitability positions have been
deteriorating the past few years and have been the subject
of many communications from the Bangko Sentral, enjoining
the bank to take the necessary corrective measures."

While RSBM's deposits rose to P611 million from June to
December 17, 1999, Mr. Buenaventura said, "the fundamental
problems in its operations remain a threat to its
viability."  He also refuted the bank's claims that it has
"250 officers and office workers who service 50,000
depositors."

He said RBSM has only 143 officers and employees as of
August 31, 1999 while there were only 20,269 deposit
accounts as of September 30, 1999.  The rural bank is the
first to declare a bank holiday under the term of Mr.
Buenaventura. (Business World  10-Jan-2000)


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

CLOB INTERNATIONAL: CDP status extended for 6 months
----------------------------------------------------
The Kuala Lumpur Stock Exchange (KLSE) issued a statement
on Dec 31, 1999, inter alia, announcing, the extension of
the authorised nominee status of The Central Depository
(Pte) Ltd (CDP) for a final period of six months to end on
June 30, 2000.

The KLSE statement states that "with this final extension
to June 30, 2000, CDP would have been given a total of 19
months to resolve the Clob issue".

The KLSE's suggestion that CDP has been responsible for the
impasse is contradicted by the facts:
It unaccountably omits reference to the continuing
unperformed contractual obligations of the Securities
Clearing Automated Network Services Sdn Bhd (Scans), which
is a wholly-owned subsidiary of KLSE, under the duly
signed, legally binding and enforceable agreement of Sept
18, 1998 between CDP and Scans (the CDP/Scans Agreement);
and (2) it omits references to proposals of July 5, 1999 by
Singapore Exchange Securities Trading Ltd ("SGX-ST",
formerly known as Stock Exchange of Singapore Ltd) to KLSE,
made without prejudice to its rights under the CDP/Scans
Agreement, for a staggered release of the Clob Securities.
(1) Continuing unperformed contractual obligations of
Scans: The core of the CDP/Scans Agreement is Clause 2 (a)
which expressly provides: "CDP shall unconditionally and
irrevocably grant Scans the power and authority to act as
follows:

(i) to accept all securities to be transferred from CDP and
to be deposited into a securities account to be established
by Scans on behalf of CDP;

(ii) to hold the said securities in custody and thereafter
transfer the securities to the respective depositors'
interim securities accounts to be established and
maintained by Scans;

(iii) upon request of the depositors through their ADAs
and/or ADMs, to transfer the said securities from the
respective depositors' interim securities accounts
maintained by Scans to the respective depositors'
securities accounts established or to be established by the
ADAs and/or ADMs."

CDP has provided Scans with all information required under
the agreement. On Oct 20, 1998, MCD informed CDP that
172,419 interim accounts had been opened in the names of
the persons appearing on the list furnished by CDP. Since
then, CDP has repeatedly requested Scans to provide the
interim securities account numbers, so that account holders
can complete the migration process. Scans has failed and
continues not to perform its remaining contractual
obligations.

CDP has been advised by its lawyers, Shook Lin & Bok
Singapore, Charles Flint Queens Counsel and its Malaysian
lawyers that the CDP/Scans Agreement is contractually
binding and legally enforceable. CDP reserves its legal
rights to enforce specific performance by Scans of its
contractual obligations under the CDP/Scans Agreement.

(2) SGX-ST's without prejudice proposals to KLSE for a
staggered release of Clob securities: The KLSE had
expressed concerns that the en bloc transfer of the Clob
securities to the securities accounts of the beneficial
owners may disrupt the Malaysian market. To address KLSE's
concerns, SGX-ST wrote to the KLSE on July 5, 1999 on a
without prejudice basis, to propose a staggered release
over 12 months.

The KLSE on July 15 and Aug 5, 1999 requested
clarification, which SGX-ST provided on July 23 and Sept 3,
1999 respectively. SGX-ST stated in the correspondence that
the proposal was open to discussion, including the
timeframe and details of the staggered release if KLSE
accepted the proposal in-principle. Having received no
further comments or replies from KLSE, SGX-ST wrote to KLSE
on Nov 15, 1999 requesting an expeditious response to its
proposals. SGX-ST wrote again on Dec 7, 1999 to ask KLSE
for its response by Jan 7, 2000. SGX-ST has received no
response to-date.

The KLSE statement seeks to clarify KLSE's role with
respect to private sector offers for the Clob securities.
The KLSE press statement describes the role of KLSE and its
subsidiaries as being solely to "ensure that the
implementation procedures for any proposals are in full
compliance with their rules and regulations". However, the
press statement then sets out the criteria for any
proposal. It must "comply with the securities laws of
Malaysia, not cause disruption to the Malaysian market and
make Malaysia the premier market for the trading of
Malaysian securities".

CDP has stated that as bare trustee for Clob investors, it
will disseminate all private sector offers it receives
which are in compliance with applicable law. It is for
individual Clob investors to decide whether to accept any
private sector offer. They are entitled to reject the
private sector offers and ask for their shares to be
transferred into individual investors' securities accounts
with the MCD, as provided under the CDP/Scans Agreement.
These private sector offers do not provide a comprehensive
solution for all Clob investors. Nor can they supplant the
CDP/Scans Agreement and Scans' contractually binding
obligations.

CDP's legal advice is that it has full legal rights with
respect to the CDP/Scans Agreement and as depositor of the
Clob securities under the Securities Industry (Central
Depository) Act 1991 as amended. CDP seeks no special
favours or privileges for itself or for Clob investors. It
only asks for what it is entitled to, under international
and Malaysian law. (Singapore Business Times  10-Jan-2000)


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

DAIWA FINANCE CORPORATION: In debt restructure negotiations
-----------------------------------------------------------
Mr.Charnsak Wongpaitoonpiya, Authorised Director, reported
to the Stock Exchange of Thailand that the following
decision was taken in the Board of Directors Meeting  No.
1/2000 held on January 7, 2000.

Mr. Vijak Sirising, Managing Director informed the Board
that Daiwa Finance Corporation has advised the company that
it would be exercising its option of recalling complete
debt in January, 2000. It was observed that it would not be
possible for the company to fulfil it's commitment given to
it's creditors while restructuring the debts last time.

It is necessary that the terms of original debt
restructuring plan be renegotiated with the creditors. It
was decided that a sub-committee consisting of following
company personnel be appointed to conduct the negotiations
with the creditors:  1. Mr. Vijak Sirising Managing
Director; 2. Mr. Subhash Bhargava Financial Director;
3. Mr. Pompetch Kaewkanchanaroj Director of Administration;
and 4. Mr. Amphorn Pornvaragorn Accounting Director.
(Stock Exchange of Thailand  10-Jan-2000)

KARAT SANITARYWARE PLC: Rehab to return profits in 3 yrs.
---------------------------------------------------------
After a leveraged buyout by a group of former managers, led
by Somkiat Limsong, who now own a controlling interest of
43 per cent, and a recently concluded agreement with
creditors to restructure Bt2.8 billion in debt, Karat
Sanitaryware is poised to rehabilitate its business and
return to profitability by 2003.

The company, in its report last November, said it had
recorded an accumulated loss of 1.841 billion baht in the
past three years. But it had taken corrective action,
restructuring debt of 2.8 billion baht. An agreement with
creditors is scheduled to be signed on Feb 14.

Karat, the third-largest manufacturer of sanitaryware in
the country, was hit hard by the slump in the property
industry. But it was now ready to make a comeback, said
assistant managing director Theerapone Varanusuakul. He
said the debt restructuring agreement gives Karat some
breathing space during the next three years by lightening
its funding costs.

The sale of the sanitaryware business to the former
management was in line with the business re-orientation of
Siam City Cement (SCCC) to concentrate on cement and
concrete.  As part of its rehabilitation plan, Karat
strengthened its own dealership network after it became
independent from SCCC. By shortening its distribution
chain, comprising 600-700 dealers nationwide, the company
has been able to improve its operating results since the
middle of last year.

Karat's plants resumed running at full capacity last year
compared to 80 per cent in 1998. Its five production sites
can produce 54 tonnes or about 5 million units of
sanitaryware per year. About 70 per cent of its output is
exported to the US, Europe, Taiwan, South Korea, Hong Kong
and other markets, while the rest fulfils domestic demand,
which is expected to rebound slightly this year. For many
years, Karat has been the largest sanitaryware exporter.
The company targets revenues of Bt3 billion this year,
unchanged from 1999.

Fourteen creditor banks, jointly led by Bank of Ayudhaya,
Siam Commercial Bank and the Industrial Finance Corporation
of Thailand, have agreed to reschedule the debt over seven
years, with a grace period for the first three years.  When
repayments enter the fourth year, the creditors will
maintain low interest rates until the end of the sixth
year, because the property oversupply is expected to
continue until 2005.  With debt restructuring completed,
Karat expects sales this year worth three billion baht. The
company claims a 25% share of the market, which is worth 12
billion baht a year. Cotto and American Standard are the
market leaders, each with about 30%.

As a result of debt restructuring, Karat will handle its
own marketing, ending its dependence on the sales network
of Siam City Cement Plc, its former parent, for almost 10
years.  Mr Teerapone said this change gave Karat more
flexibility in management and marketing. The company had
signed up 700 dealers nationwide and was ready to enter the
market for high-quality products.

Domestic sales are forecast at 10,000 tons this year, up
from 8,000 last year. Exports are projected at 44,000 tons,
down from 46,000 last year, due to the recovery of the
domestic market.

Prior to the depreciation of the baht in mid-1997, the
company used offshore loans to finance its capacity
expansion projects.
"We purchased hundreds of rai in Khon Kaen, Lampang, and
Prachin Buri to build new factories but the projects have
been put on hold. We had already started construction on
the Prachin Buri site, while those in Khon Kaen and Lampang
have not been touched yet," he said.  The parcels in these
three provinces are now up for sale, he added.

Karat Sanitaryware, listed on the Stock Exchange of
Thailand, accumulated Bt1.841 billion in losses. The
company posted a loss of about Bt400 million for the first
nine months of last year.

The company ranks third in the domestic sanitaryware market
with a 25 per cent share. The two largest sanitaryware
producers in terms of market share are American Standard
and Siam Cement.
Karat now employs 3,000 and experienced no net layoffs
during the recession.  (The Nation, Bangkok Post  10-Jan-
2000)

KRUNG THAI BANK: Bt40M loan furor called "gamesmanship"
-------------------------------------------------------
Krung Thai Bank officials say allegations of irregularities
and fraud involving a 40-million-baht loan to a firm in
Roi-et are a case of local political gamesmanship.

Earlier this week, Amnuay Yossuk, chairman of the House
finance, banking and financial institutions committee, said
the police would be asked to investigate claims that the
loan to Thai Samakhee Panit 1988 Co was made using faked
documents.

Niran Namuangrak (NAP, Roi-et) had submitted a complaint to
the panel about the loans to Thai Samakhee, reportedly
owned by the brother of a cabinet minister.  The company
was awarded a contract from the Office of Accelerated Rural
Development in 1996 to develop two road projects. Mr Niran
claimed Thai Samakhee falsified the dates on the contract
in order to seek the loan from the state-owned bank. The
provincial office had confirmed that no contract was made
with Thai Samakhee in 1997, he added.

But bank officials said the case was an effort to discredit
the government, and was an attack by the opposition against
a Chart Thai minister in an attempt to disrupt the
coalition.  Pairoj Vorapas, Krung Thai senior executive
vice-president, said the case raised in the House committee
was likely a misunderstanding. He said the loans in
question to Thai Samakhee had already been restructured and
were being serviced on time.  He declined to elaborate,
citing client confidentiality.

"It's a case that is being dragged into local politics,
since the company is owned by the elder brother of Anurat
Jurimas (Chart Thai, Roi-et), who currently is a deputy
agriculture minister," Mr Pairoj said.  "Krung Thai has not
yet received any requests from the House panel to clarify
the allegations. But we have prepared a report to explain
already."

Responsibility for scrutinising the accuracy of contract
documents used in loan applications is the duty of the
issuing agency, in this case the Rural Development Office.
Mr Pairoj said that if fake or altered documents were used,
then the development office, as the injured party, should
investigate.

In any case, Krung Thai had not been damaged in the case,
as loans were still being repaid, he said.  Other
executives said bank procedures called for swift action if
improper documentation was discovered.  "We can always go
back to the customer and ask for changes," one bank
executive said.

Bank executives found to have illegally collaborated with
clients would be prosecuted.  Krung Thai has launched
several programmes over the past several years to
strengthen internal controls and curb staff corruption.
Five years ago, Sirin Nimmanahaeminda, then bank president,
ordered two separate reshuffles of branch managers
nationwide.

"The reshuffle was to help cut down the problem of staff
becoming like local mafia," one executive said, adding that
more than 200 criminal and civil cases had been filed by
the bank against staff and management for crimes such as
fraud, corruption or theft.

The bank's internal auditors were responsible for
scrutinising and ensuring that documents and client files
were correct.  Irregularities would result in the
responsible loan officers being asked to explain any
problems and take corrective action. If intent to defraud
was found, an ethics investigation would follow, with
punishment including transfers, dismissal or even criminal
action.

Krung Thai has also revamped its lending procedures,
centralising credit approval functions at the main office.
Previously, branch managers were allowed to extend loans of
up to one million baht on their own.  Now, new lending
approvals are made at Krung Thai's separate business and
retail units, with branch executives primarily responsible
for front-office marketing.

Bankers agreed that no risk management system was 100%
foolproof against fraud or corruption. Effective internal
controls can, however, speed up the process of catching and
correcting mistakes, limiting damage incurred by the bank.
(Bangkok Post  08-Jan-2000)

TANAYONG PLC: Still fighting debt situation
-------------------------------------------
Despite a Bt4-billion debt payment and opening of the
Bangkok Skytrain service early last month, Tanayong Plc,
the major shareholder of Skytrain operator Bangkok Transit
System Co (BTSC), still has a lot more debts to settle
prior to its initial public offering expected sometime this
year.

The remainder of claims on Tanayong plc, which still
legally holds more than 50 per cent of BTSC, includes Bt3.2
billion in Asian bonds, due 1999, and US$130 million in
convertible debentures, due in 2004, according to sources
familiar with the Thai firm's debts.

The Asian bonds are secured by properties of Tanayong, once
a high-flying property development firm. Headed by Keeree
Kanjanapas, Tanayong managed to pay back nearly Bt4 billion
in debt to CS First Boston late last year, allowing it to
avoid the second-tranche auction of its 248 million shares
of BTSC, the collateral, on Dec 7.

In Nov 1999, the first tranche of 268 million BTSC shares
owned by Tanayong plc was already auctioned by creditors,
and CS First Boston won the bid. However, Tanayong refused
to transfer the shares to the creditor. This case is still
pending in court.  If the 268 million shares were
transferred, Tanayong's holding in BTSC would be reduced to
only 29-30 per cent.

Meanwhile, local creditors of Tanayong holding another Bt5
billion in debts recently agreed to a debt restructuring
proposal with the firm under the framework of the CDRAC
(Corporate Debt Restructuring Advisory Committee).  This
proposal, however, does not include convertible debentures
and Asian bonds among possible others, according to an
informed source.

The High Court of Justice in England in Sept 1999 ruled in
favour of the holders of Asian bonds. In addition, the
creditors have prepared to submit the case to the Thai
court despite Tanayong's attempt to stop the legal
procedures.  With regard to convertible debentures of $130
million (Bt5.2 billion), the bonds are not secured and
bondholders sent notice in November to Tanayong. Their
trustee has started proceedings in the High Court of
Justice in England, which has yet to make a ruling.

Industry sources said Tanayong, despite its bad credit,
managed to get funds to pay back the Bt4 billion debt late
last year because of the prospects of a lucrative initial
public offer of its shares which is expected to carry a
good premium. Even in the over-the-counter market, the
shares are expected to fetch Bt25-30 each. (The Nation  10-
Jan-2000)

THAI TEL. & TEL.: Close to debt deal with creditors
---------------------------------------------------
Provincial fixed-line operator Thai Telephone &
Telecommunication PCL is close to sealing a 32-billion-baht
($858.7 million) debt deal with creditors and plans to
raise new funds, a company executive said.

TTNT's managing director, Thongchat Hongladarom, said the
funds, which could be raised by selling new shares, bonds
or a hybrid issue, would be used to covnert debt into
equity.

"We have made a lot of progress on restructuring debt. We
need new money for the debt-to-equity conversion. The funds
to be raised should be about five (billion) to six billion
baht, or about $150 million," he said.

Mr. Thongchat said he expected to conclude the debt deal
with creditors by the end of the first quarter.  TTNT's
total debt is about 40 billion baht and the company plans
to restructure about 32 billion baht of it, he said. Mr.
Thongchat said half of the debt to be restructured was in
foreign currencies. He said the firm's major foreign
creditors were French and Swedish banks, but declined to
identify them.  TTNT's domestic bank creditors are led by
Thai Farmers Bank and Krung Thai Bank.

Asked about a change in shareholding after the capital-
raising plan, Mr. Thongchat said the company's major
shareholders would maintain their holdings in the company,
even as new investors emerge.  TTNT's major shareholders
are Thai telecommunications company Jasmine International
PCL, Internet service provider Loxley PCL., construction
group Italian-Thai Development PCL and Japan's Nippon
Telegraph & Telephone Corp.

Mr. Thongchat said the debt plan included an extension of
the principal repayment period and reductions in interest
rates.  Further details would be determined later and were
subject to approval by shareholders and creditors, he said.
The company would submit a detailed plan to the central
bank's debt-restructuring committee on Jan 12 and expected
creditors to vote on it by Feb. 16, he said.

Mr. Thongchat said the company aimed to cut its interest
burden by 30%. It now has annual interest payments of about
2.8 billion baht, he said. The firm had paid about two
billion baht of the interest it owed for 1999, he said.
TTNT stopped making principal repayments in September 1998.

Mr. Thongchat said TTNT would focus more on e-commerce and
Internet-related businesses in the the future, especially
as a network provider, after completing the debt deal.

"If the debt restructuring runs smoothly as planned, our
debt-interest burden will be eased. Our financial status
will be more healthy, which will make it easier for us to
expand our network," he said. (The Asian Wall Street
Journal  07-Jan-2000)


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. Darryl Henning, Managing Editor, Feliz Ordona and
Cristina Pernites, Editors.

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

This material is copyrighted and any commercial use, resale
or publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
prohibited without prior written permission of the
publishers.  Information contained herein is obtained from
sources believed to be reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6
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the initial subscription or balance thereof are $25 each.
For subscription information, contact Christopher Beard at
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                     *** End of Transmission ***