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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 18, 2000, Vol. 3, No. 12

                            Headlines


* C H I N A  &  H O N G  K O N G *

CABLE AND WIRELESS HKT: Fears of another layoff rising
CHI CHEUNG INVESTMENT: Announces rescue plan, white knight
DCG PRODUCTION LIMITED: Facing winding up petition
HINWELL DEVELOPMENT LIMITED: Facing winding up petition
HONWALL INVESTMENT LIMITED: Facing winding up petition
INT'L WIRELESS COMMOS.LTD.: Facing winding up petition
MILLENNIUM GROUP: Court approves rehab plan
PRINT WELL PRINTING CO.LTD.: Facing winding up petition
SOURCEHILL INVESTMENT LTD.: Facing winding up petition
TOPMA (HONG KONG)CO.LTD.: Facing winding up petition
WAH LEE TRADING CO.LTD.: Facing winding up petition


* I N D O N E S I A *

PT PERTAMINA: New president soon; no effect on rehab


* J A P A N *

TOKYO DOME CORP.: To post 10B Yen net loss


* K O R E A *

DAEWOO CORP.: Foreign creditors may lower demands to 45%
DAEWOO CORP.: Foreign creditors' 45% offer likely rejected
DAEWOO CORP.: Transfarm asks SEC to deny receiver petition
DAEWOO GROUP: Creditors brace for bigger loss
DAEWOO MOTOR: Due diligence proceeds, Ford to make offer
SEOUL BANK: Expecting net loss for 1999
SSANGYONG MOTOR: Shareholders consider spinoff from Daewoo


* M A L A Y S I A *

CLOB INT'L: Federation urges speedy solution to Clob issue
NALURI BHD: Rehab panel to unveil MAS parent's debt plan
TIME ENGINEERING BHD.: To make sweeping management changes


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

BW RESOURCES CORP.: PSE investigating "wash sales"
NATIONAL STEEL CORP.: Would-be buyers' capital only $50M
PHILIPPINE NAT.BANK: Tan confirms plan to buy gov't stake
SHEMBERG GROUP: Inks rehab pact with 47% of creditors
UNIWIDE GROUP: SEC asked to recall convenience stores sale


* S I N G A P O R E *

IPC CORP.: Debt restructuring plan unveiled
LEWIS & PEAT RUBBER: Seeks Chapter 11 bankruptcy protection


* T H A I L A N D *

KRUNG THAI BANK: B400bn in bad loans could go to asset firm
NOBLE PLACE CO.: 60% of shares go to Bangkok Bank in rehab
STECON ENGIN. AND CONSTR.: Awaits court approval of rehab
THAI FARMERS BANK: More losses ahead after 4th quarter loss
TOTAL ACCESS COMMUNICATION: `Coup' makes staff jittery


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

CABLE AND WIRELESS HKT: Fears of another layoff rising
------------------------------------------------------
Fears of another massive layoff have swept through the
13,000-strong staff at Cable & Wireless HKT despite the
apparently accelerating economic recovery in the new
millennium.

Hong Kong Telecom Employees Unions spokesman Fan Kwok-fai
told the Hong Kong Standard that middle-level managerial
staff, especially those on a monthly salary of $100,000 or
more, were said to be the target of the company's
"restructuring plan."

He said the scheme came to light after the company posted
an internal notice yesterday that also pledged the existing
number of staff would be not affected.  However, the notice
has reawakened old fears, Mr Fan said, with senior staff
particularly afraid they would be replaced by new employees
on lower packages.

He quoted a rumour as saying the company would launch a
voluntary redundancy program similar to an abortive offer
in April last year.  Although the rumour started
circulating early this month, he said staff had not been
able to get management to confirm it either way.

When HKT reported a $2.77-billion attributable loss to
shareholders in November - its first-ever loss in interim
results - chief executive Linus Cheung Wing-lam refused to
address the question of whether staff would be laid off as
a consequence.  Mr Cheung had then blamed the company's
poor performance on intense competition in both
international direct dial and mobile services.  A HKT
spokesman refused to comment on the staff jitters.

The company would continue to hire new employees this year,
he said, although it was too early to decide how many would
be recruited. He said it would depend on the market
situation.

"We have always said our staff is the company's biggest
asset. We keep providing training for our employees in a
bid to enhance their quality and competitiveness amid
fierce market competition," he said.

The April "voluntary exit" program sought 4,000 layoffs in
customer-service and network operations.  Only 200 took up
the offer.  The telecommunications giant had earlier
pledged it would not implement any layoff plans before this
year, which was why, Mr Fan said, staff have become more
jittery at this time. (Hong Kong Standard  15-Jan-2000)

CHI CHEUNG INVESTMENT: Announces rescue plan, white knight
----------------------------------------------------------
Troubled property developer Chi Cheung Investment has
reached a revised debt-restructuring agreement with rescuer
Far East Consortium International. Far East will inject $
30 million in cash and $ 200 million in assets and take a
stake of between 70 per cent and 74 per cent in Chi Cheung.

The ailing firm said it had a negative net asset value of $
575 million as of June 30 last year and warned it would
become insolvent if its debt-restructuring plan failed. The
stock exchange has yet to decide whether Chi Cheung would
be regarded as a new listing if the plan goes ahead.
(South China Morning Post  13-Jan-2000)

DCG PRODUCTION LIMITED: 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
Tang Pui Kwan, Debbie for the winding up of DCG Production
Limited. A notice of legal appearance must be filed on or
before February 8.

HINWELL DEVELOPMENT LIMITED: 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
Meespierson N.V. for the winding up of Hinwell Development
Limited. A notice of legal appearance must be filed on or
before January 25.

HONWALL INVESTMENT LIMITED: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for February 23 on the petition of
H&E Tsurumi Pump Co.Ltd. for the winding up of Honwall  
Investment Limited. A notice of legal appearance must be
filed on or before February 22.

INT'L WIRELESS COMMOS.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
International Wireless Communications (HK) Ltd. for the
winding up of said company. A notice of legal appearance
must be filed on or before February 8.

MILLENNIUM GROUP: Court approves rehab plan
-------------------------------------------
The High Court has approved the Millennium Group's
restructuring plan which will see its $ 2 billion in
capital in four billion shares of 50 cents each into
100 billion shares of two cents each.  (South China Morning
Post  13-Jan-2000)

PRINT WELL PRINTING 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
Tang Yiu Wing Limited for the winding up of Print Well
Printing Co. Lt. A notice of legal appearance must be filed
on or before January 25.

SOURCEHILL INVESTMENT LTD.: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for February 23 on the petition of
H&E Tsurumi Pump Co. Limited for the winding up of
Sourcehill Investment Limited. A notice of legal appearance
must be filed on or before February 22.

TOPMA (HONG KONG)CO.LTD.: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 8 on the petition of Sky
Tech Machine Tool Limited for the winding up of Topma (Hong
Kong) Company Limited. A notice of legal appearance must be
filed on or before March 7.

WAH LEE TRADING CO.LTD.: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for February 2 on the petition of
ABSA Asia Limited for the winding up of Wah Lee Trading
Company Limited. A notice of legal appearance must be filed
on or before February 1.


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

PT PERTAMINA: New president soon; no effect on rehab
----------------------------------------------------
The new commissioners of the state oil and gas Pertamina
expect to find a new president for the company in one or
two weeks, Minister of Mines and Energy Susilo Bambang
Yudhoyono said on Friday.

Bambang, who is also president commissioner of Pertamina,
said Pertamina's board of commissioners was currently
studying potential candidates to replace the current
president, Martiono Hadianto.  "We have yet to decide when
to replace him (Martiono), but the sooner the better,"
Bambang told reporters at his office.

He said the new president of Pertamina should be capable
and meet the criteria set by President Abdurrahman Wahid.

Abdurrahman, popularly known as Gus Dur, asked ministers on
Thursday to select a new president for Pertamina -- someone
who is honest, able to conduct transparent management and
capable of leading Pertamina in an era of global
competition.  Bambang declined to specify the reason why
President Abdurrahman wanted to replace Martiono, but he
denied the allegation that "Martiono has failed."

He said he understood that Pertamina's leadership needed
"refreshing" as it was going to carry out the difficult
task of turning itself into an efficient and productive oil
and gas company.  When asked whether the government also
intended to replace Pertamina's board of directors, Bambang
said the government was currently only focusing on
Martiono's replacement.

Separately, Martiono said he appreciated Gus Dur's
intention to replace him and find a new leader for
Pertamina.  "Gus Dur made a normal, clear and fair
statement. It's normal that a president chooses new
assistants who will go in-line with his or her policy,"
Martiono told reporters at a small meeting in Pertamina's
head office.

Furthermore, he said, in setting the criteria for
Pertamina's new leader, Gus Dur had publicly revealed the
quality of Pertamina's future president, and as such had
invited them to take part in controlling the new leader's
performance.  Martiono also said that unlike former
president Soeharto and B.J. Habibie, Gus Dur had opted to
comply with existing regulations that require Pertamina's
board of commissioners to nominate the candidates for
Pertamina's president.

"Soeharto always handpicked Pertamina's new president by
himself, but he did it such a way that his minister of
mines and energy appeared to make the nomination," he said.

Pertamina's new board of commissioners was inaugurated
yesterday by Gus Dur.  Asked whether a change in
Pertamina's leadership would affect the company's current
restructuring programs, Martiono said he expected that
would not happen as the programs were in-line with the
government's policies.  As part of the restructuring
program, Pertamina would invite an international
consultancy firm to evaluate the performances of
Pertamina's directors and unit heads, Martiono said.

"We'll invite an international agency for this job, because
I want the assessment to be objective," he said.

According to Martiono, there was a big chance one of
Pertamina's employees could become president in the future.
"Out of 28,800 employees, we should have the right person,"
he said. (The Jakarta Post  15-Jan-2000)


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

TOKYO DOME CORP.: To post 10B Yen net loss
------------------------------------------
Tokyo Dome Corp. (9681) is expected to incur a net loss of
about 10 billion yen in the fiscal year ending Jan. 31.,
compared to the loss of 6.41 billion yen it sustained a
year ago.

The operator of a popular baseball stadium in Tokyo
projected a net profit of 1.1 billion yen last September.
The company is expected to cancel a planned 6-yen, year-end
dividend, the second consecutive year of no payouts.

This fiscal year, Tokyo Dome will post as an extraordinary
loss about 20 billion yen set aside against potential loan
losses to some 10 ailing subsidiaries. The company has
extended an estimated total of 95 billion yen in loans to
the units, including golf course and hotel operators. The
subsidiaries' restructuring efforts, however, are not
proceeding smoothly due to current weak consumer demand.

Tokyo Dome will also dispose of a total 3 billion yen in
appraisal losses on its investment in tokkin specified
money trusts.  The company, however, expects its pretax
profit to exceed its September projection by 3.2 billion
yen, as it plans to offset the appraisal loss by 5 billion
yen in proceeds from the sale of the firm's cross-held
shareholdings. (Nikkei  15-Jan-2000)


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

DAEWOO CORP.: Foreign creditors may lower demands to 45%
--------------------------------------------------------
The Financial Supervisory Commission said Daewoo Corp's
foreign creditors may consider lowering their debt
repayment demands to 45 percent from the previous 59
percent.

It added that in negotiations with Daewoo's advisory
delegation this week, the foreign creditors proposed the
settlement of a number of issues before they would agree to
a lower debt repayment figure.  These include how
repayments will be allocated among each of the creditors
how to deal with secured creditors, and whether they would
be entitled to some new some additional rights, in excess
of current market prices, over uncollectable and unsecured
bonds with attached warrants.

The FSC added the creditors are also claiming rights to
assets of Daewoo Group subsidiaries, especially Daewoo
Motor Corp, because Daewoo Corp was a major capital
provider for the group, with the borrowed funds used by
other subsidiaries in acquiring assets.  (AFX News Service  
14-Jan-2000)

DAEWOO CORP.: Foreign creditors' 45% offer likely rejected
----------------------------------------------------------
The Korean government is likely to reject the offer of
Daewoo's foreign creditors that Korea should pay 45 percent
of the problem loans they extended to Daewoo companies.

The ratio is far higher than the 36 percent the Korean
government offered earlier in its new revised proposal.
As a result, further negotiations are expected between the
two sides to narrow the differences.  A senior government
official in charge of Daewoo's workout scheme yesterday
said that the foreign banks' new proposal of a 45:55 loss
sharing in the Daewoo debt is far from satisfactory,
strongly hinting at a rejection of the new ratio.

"Daewoo's foreign creditors now decreased the Korean
government's loss share from 59 percent to 45 percent. The
proposal came during the negotiations in Hong Kong and
London," the official said.  "However, it is still much
lower than the Korean government expected. We proposed a 36
percent repayment to foreign creditors of Daewoo debt."

The Korean government will not concede more than what had
been offered already, the official said, adding that
foreign banks should come back with a loss sharing ratio
closer to the Korean government's final proposal of 64
percent.  Foreign creditors also demanded the Korean side
return to the negotiating table with the members of the
Foreign Bank Steering Committee instead of holding
dialogues on a company-by-company basis.

Based on Daewoo being a single business entity, foreign
banks said that once the government places the group's
major financing unit Daewoo Corp. under court receivership,
they will file lawsuits against other major operations to
recover their money.  Six months after bargaining, the
Korean government delivered to foreign banks a final cash
buyout proposal of 36 percent of Daewoo's $5 billion
overseas debt on Dec. 29.

In a new approach toward rescheduling the $5 billion
foreign debt, the Korean government recently called for
meetings on a company-by-company basis with foreign banks.
Those heavily exposed to Daewoo Corp., including Steering
Committee members, were excluded from the meeting.  (Korea
Times  16-Jan-2000)

DAEWOO CORP.: Transfarm asks SEC to deny receiver petition
----------------------------------------------------------
Transfarm and Co. Inc. (Transfarm) is asking the Securities
and Exchange Commission (SEC) to deny its estranged joint
venture partner's petition, Korean car manufacturer Daewoo
Corp., to appoint a receiver that will start dissolution
and liquidation proceedings of their joint venture firm,
Transdaewoo Automotive Manufacturing Co. Inc. (TAMC).

In its opposition filed with the SEC, Transfarm said there
is no legals basis for the liquidation of TMC and belied
allegations of Daewoo that it has breached the terms of
their joint venture agreement (JVA) when TAMC was
incorporated in 1994.

"There is no basis for the appointment of an interim
receiver since the grounds for the appointment are not
present in this case, the property and assets of TAMC being
intact and in no danger of being lost, removed, injured,
wasted or dissipated," Transfarm said.

Under the joint venture agreement, Transfarm would assemble
Daewoo cars at its Mandaue assembly plant and distribute
the vehicles in the local market.  Daewoo later however,
wanted out of the contract, and has since then filed
withs the Board of Investments a separate application for
registration of the same car models being assembled by
Transfarm.

Daewoo alleged that several provisions in the JVA were
violated by Transfarm, prompting its move to go solo.
Transfarm however, refuted these accusations. Transfarm
president Luis H. Quisumbing said earlier that Daewoo
refused his offer to just buy out the Koreans for $20
million.  Through legal counsels, Quisumbing said there is
no truth to Daewoo's allegations that Transfarm failed to
complete within three years, the assemby plant for the
manufacture of Daewoo cars since the incorporation of
TMC in 1994.

Transfarm said the JVA did not provide for a reference
period  within which to complete the plant. It added the
non-operation of TAMC was due to Daewoo's deliberate delay
in providing the debt financing facilities needed to
purchase machinery and equipment. And with the Asian
crisis, both parties decided to postpone operations.

Transfarm said the JVA cannot be terminated since it has
not breached its contract terms by importing and selling
Chrysler vehicles which Daewoo resented because it is in
direct competition with its cars. Transfarm said the
Chrysler vehicles targetted the high-end luxury vehicles
market while Daewoo cars belonged to the People's Car
Category of the Car Development Program of the BOI, thus,
there is no violation in the non-competition clause of the
JVA. (The Philippine Star  15-Jan-2000)

DAEWOO GROUP: Creditors brace for bigger loss
---------------------------------------------
Bank of Tokyo-Mitsubishi Ltd., HSBC Holdings PLC and other
foreign creditors of Daewoo Group say they are prepared to
take bigger losses on their loans to the ailing industrial
group.

An offer to recover an average 45 cents on the dollar on
Daewoo Group's $6.7 billion foreign debt was sent in a
letter to the South Korean government. It was co-signed by
Chase Manhattan Corp., a member of the foreign-bank
steering committee representing Daewoo Group's 200 foreign
lenders.

Foreign creditors had been asking for 59 cents on the
dollar, itself a retreat from their reported initial demand
for 80 cents on the dollar.  The new proposal aims to break
a three-month stalemate with South Korean lenders, many of
them state-run banks, over Daewoo Group's overseas debts.
The Korean banks last month offered to pay foreign lenders
an average 36.5 cents on the dollar on Daewoo Group's
overseas debt. Daewoo Group is struggling under at least
$78 billion of debt

"We're still waiting for the new counterproposal," said
Choi Ouk, an official at the Corporate Restructuring
Coordination Committee, which is dealing with Daewoo's
foreign creditors. "And we'll decide where to go from
there."

The new proposal could have been given impetus by General
Motors Corp. and Ford Motor Co., which appear to be headed
for a battle to acquire Daewoo Motor, according to one
analyst.  The latest offer comes after Daewoo's financial
advisers and lawyers held two rounds of meetings this week
with the foreign lenders to three of Daewoo Group's larger
units, Daewoo Motor Co., Daewoo Electronics Co. and Daewoo
Heavy Industries Co. (The International Herald Tribune  15-
Jan-2000)

DAEWOO MOTOR: Due diligence proceeds, Ford to make offer
--------------------------------------------------------
Ford Motor Co. has decided to bid on Daewoo Motor Co. at
its board of directors meeting in Detroit Friday, said
industry sources in Seoul yesterday.

Ford's directors also decided to make a bid for sports-
utility vehicle maker Ssangyong Motor Co., in addition to
Daewoo Motor's entire passenger car operations, said
sources.  In this regard, an executive at one of Daewoo's
creditor banks said that visiting Ford officials, who
arrived in Seoul last week, are speeding up their asset
evaluation on Daewoo Motor.

"The Ford survey team is collecting information on Daewoo
Motor's production, sales and market shares, while asking
for data on Ssangyong Motor," he said.

Ford plans to bring in a more diligent staff for a closer
investigation this week.  Earlier on Wednesday, Ford Motor
Vice Chairman Wayne Booker said in a meeting with Korean
reporters at his Detroit office that Ford is interested in
acquiring the whole of Daewoo Group's passenger car
businesses.

He said that Ford is willing to assume parts of Daewoo
Motor's debts to stand a better chance of winning the
coming international auction. Booker also stated that Ford
is ready to review all options, including consortium with a
Korean car maker such as Hyundai Motor.

Intensifying international competition for the No.2 Korean
car maker, a top General Motors executive, Rudy Schlais,
told a French newspaper Thursday that GM is strongly
determined to buy Daewoo. But the GM executive made clear
the company's intent to close some Daewoo plants in and
outside of Korea after the merger, while showing reluctance
over the debt assumption issue.  Daewoo's creditors plan to
select one company for exclusive negotiations by the end of
March.

Meanwhile, Ssangyong Motor's shareholders agreed to spin
off the SUV maker from the crippled Daewoo Group in March,
with creditors' equity stake rising to 63.6 percent through
debt-for-equity swaps by then. In contrast, former Daewoo
Group Chairman Kim Woo-choong's stake in Ssangyong will be
reduced from the current 52 percent to 18 percent by March
31.

"Despite the planned spinoff, Ssangyong will be sold in a
package deal with Daewoo Motor. But separate sale will not
be ruled out," said a spokesman for Chohung Bank, the lead
creditor for Ssangyong.

On the other hand, Daewoo Motor said that its passenger car
plant in Kunsan, about 250 km south of Seoul, has shifted
to a 24-hour operation to meet an exploding demand for its
new minivan, Rezzo, and popular compact sedan, Nubira. The
number of orders for Rezzo, which went on sale Jan. 7,
already exceeded 10,000 units as of Saturday, company
officials said. (Korea Herald  17-Jan-2000)

SEOUL BANK: Expecting net loss for 1999
---------------------------------------
Seoul Bank said it estimates it recorded a net loss of 2.25
trln won in 1999, but expects a net profit of 500 bln in
2000.

Its BIS capital adequacy ratio in 1999 was 10.5 pct. Its
losses before provisions were estimated at 1.79 trln won
with provisions for bad loans amounting to 1.15 trln won.
Additional provisions for bad loans will reach 590 bln won
under the "forward looking criteria," which oblige banks to
classify corporate loan risks based on the borrower's
future ability to generate enough cash to service the
loans.

"We expect a turnaround this year with a net profit of 500
bln won," an official at the bank said.

Trading of Seoul Bank's shares was suspended on Sept 3,
1999 due to the bank's insolvency and since then the
government has injected more than 6 trln won of public
funds into the bank.  (AFX News Service  14-Jan-2000)

SSANGYONG MOTOR: Shareholders consider spinoff from Daewoo
----------------------------------------------------------
At a general shareholders' meeting Saturday, Ssangyong
Motor has agreed on proposals that its creditors convert a
total of W130 billion in loans into the firm's equity and
that its shares outstanding be reduced in a ratio of
4.65:1. When the proposal goes through, creditors will
become the largest shareholder by increasing their stake to
63.6%, while those owned by Daewoo Motor and its former
chair Kim Woo-choong will be trimmed down to 18% from 52%.

The Musso maker said that a spin-off from the Daewoo group
will be achieved before the end of March. The creditors
expect that the plan to sell Ssangyong Motor to foreign
firms will not be changed despite the spin-off. Both
General Motor and Ford of the United States have expressed
their intention to buy Daewoo Motor as well as Ssangyong
Motor.  (Digital ChosunIlbo  16-Jan-2000)


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

CLOB INT'L: Federation urges speedy solution to Clob issue
----------------------------------------------------------
The Federation of Public Listed Companies (FPLC) Bhd has
expressed concern over the delay in resolving the Central
Limit Order Book (Clob) shares issue.  Its president Datuk
Megat Najmuddin Megat Khas said that time was of the
essence and the Clob issue should be addressed urgently as
it was causing uneasy sentiments on the stock markets in
Malaysia and Singapore.

"The sooner it is resolved, the better it will be for the
Composite Index to improve in the medium to long term, with
investor confidence returning to the market," he said in a
statement yesterday.

When contacted by Star Business, Najmuddin said it was
unwise for Clob investors to wait too long for a
"reasonable" offer for their frozen Malaysian securities
which were previously traded on Singapore's Clob over-the-
counter market.

"Investors have to make up their mind as time is of the
essence here. What more do they want? The higher the market
moves the more difficult it would be for them to settle the
matter," he said.  "This is something that has been hanging
over our heads for far too long. These investors can't have
their cake and eat it too."  

Najmuddin said some of the offers by Malaysian companies to
buy up the Clob shares were reasonable and should be
considered seriously.  He said that although the Clob issue
was more of the private sector's concern, both the
Malaysian and Singaporean governments should act as
facilitators to resolve it.

"Forcing the issue on the government through external
bodies like the World Trade Organisation may not lead to a
harmonious solution. Threats of court action will also not
benefit anybody," he added.

Najmuddin said that investor confidence would be affected
as long as the Clob issue remained unresolved although the
market was picking up and gaining strength.

"Although the Clob issue arose from the separation of the
SES (Stock Exchange of Singapore) and KLSE, it should not
be overblown to the point of straining diplomatic
relations," he added. (The Star  15-Jan-2000)

NALURI BHD: Rehab panel to unveil MAS parent's debt plan
--------------------------------------------------------
Malaysia's Corporate Debt Restructuring Committee (CDRC) is
close to completing a debt workout plan for Naluri Bhd,
which it expects to announce very soon, the agency's chief
said yesterday.

"It's almost complete," CDRC chairman C Rajandram said. "We
just have a few details that need to be sorted out."

Naluri is the parent company of national carrier Malaysian
Airline System Bhd (MAS).  Asked when the debt plan would
be announced, he said: "Very soon."

Shares of Naluri, its 29 per cent owned associate MAS and
Malaysia's largest mobile phone firm Technology Resources
Industries Bhd (TRI) rose sharply yesterday on talk that a
debt revamp plan was close to being finalised. All three
firms are controlled by businessman Tajudin Ramli.

Mr Rajandram declined to comment on market speculation that
a debt plan would be announced involving all three
companies. He said he could not comment on MAS and TRI's
plans because the debts of the two firms had not been
referred to the agency, which is a part of the central
bank, Bank Negara.  He said the CDRC was working with
Naluri to help resolve the company's debt problems but had
no announcement to make yesterday.

"Naluri is with us," he said. "We are in the process of
finalising. Definitely there is no announcement today."

An MAS official said the national carrier had no
announcement to make. TRI officials could not be reached
for comment.  TRI defaulted on payments on an outstanding
bond issue worth last year and has since obtained court
protection from creditors. TRI owes bondholders around
US$531 million (S$888.5 million).

Aviation services firm Naluri said last June it sought the
help of the CDRC to restructure debts of 1.2 billion
Malaysian ringgit (S$528.4 million). MAS is expected to
post a net profit in the year to end-March 2000, against a
net loss of RM700 million in 1998/99 financial year.
Analysts have said Mr Tajudin could try to use MAS as a
recovery vehicle for his stable of companies. (Singapore
Business Times  15-Jan-2000)

TIME ENGINEERING BHD.: To make sweeping management changes
----------------------------------------------------------
Debt-laden Time Engineering Bhd. Will announce sweeping
management changes in coming days, including chief
shareholder Tan Sri Halim Saad assuming the post of
managing director.

Senior financial executives close to the group said the
company, which has extensive interests in
telecommunications, will also announce the appointment of
Tan Sri Abu Talib Othman, Malaysia's former attorney
general, as chairman. Tan Sri Halim, who controls a 54%
interest in Time Engineering through his flagship Renong
Bhd., will replace Phang Shyue Ming, while Tan Sri Abu
Talib, who is also a Renong director, will take over from
Datuk Shamsir Omar.

The executives say the management changes are a prelude at
Time Engineering and its main subsidiary Time
Telecommunications Sdn. Bhd. The group has debts of roughly
four billion ringgit ($1.05 billion), and has rejected bids
from other telecommunication groups to take over its
assets, which include a nationwide fiber-optic network.
(The Asian Wall Street Journal  14-Jan-2000)


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

BW RESOURCES CORP.: PSE investigating "wash sales"
--------------------------------------------------
The Philippine Stock Exchange (PSE), based on its field
work, has determined that a number of its member-brokers
has engaged in fraudulent trading activities relative to
the spectacular rise of property and leisure firm BW
Resource Corp. (BWRC) in the stock market last year.

A highly-placed source from the government revealed over
the weekend that the compliance and surveillance group
(CSG) of the exchange has found indication of "wash sales,"
an illegal trading activity wherein the buyer and the
seller is the same to create an artificial demand for a
stock to effect an increase in its share price.
The PSE in a letter will ask businessman Dante Tan,
majority shareholder in BWRC, to explain his side on the
allegations that he's guilty of engaging in wash sales.

"Putting together documents collated during the field work,
there's an indication of fraudulent activities such as a
wash sale. There is also an indication of connivance by
some brokerage firms," the source said.

In a statement, BWRC assailed the leakage of what it called
"unofficial results" of the PSE investigation on insider
trading.  BWRC said it received reports over the weekend
that a PSE official called in media men covering the
exchange last Friday and released the unofficial report.
BWRC president Eduardo Lim Jr. said the act of the
government official preempts the official results of the
PSE findings which is unfair to the listed company and its
stockholders.

"We are concerned that such practice of releasing
unofficial information may be used as a tool for market
play to deteriorate the share price, creating a situation
of panic among shareholders and putting the listed company
at a disadvantage," Lim said.  "In this situation, only
intra day shortsellers will benefit at the expense of the
company and its shareholders. The destabilization of the
share price results in millions of pesos in losses for the
stockholders. It is important that this practice be abated
as it not only sends wrong signals to the investors but
also undermines the integrity and credibility of the
exchange as an institution," he added.

The PSE is currently investigating 10 stock brokerage firms
which traded heavily on BWRC shares. These member-broker
firms are: PCCI Securities, Angping Securities, Wealth
Securities, Abacus Securities, AT de Castro Securities,
Solar Securities, Mandarin Securities, Quality Securities,
Guild Securities, Eastern Securities, Wise Securities,
Belson Securities, Magnum Securities, Goldstar Securities,
Chua Securities and ATR Securities.

The source said the findings based on the field work were
not conclusive and would still be reviewed by the CSGS in
consultation with PSE president Jose Luis Yulo Jr. After
the review, the findings will be forwarded to the business
conduct and ethics committee (BCEC) of the exchange for
further review.

The 15-man board of governors of the PSE will then further
study the findings after the BCEC.  The result of the
review by the PSE board will then be submitted to the
Securities and Exchange Commission (SEC) for another round
of review, validation, and - if there are negative findings
- sanction.

The Senate committee on banks, financial institutions and
currencies, headed by Sen. Raul Roco, will conduct on Jan.
19 at the PSE Center in Ortigas the third of a series of
hearings probing possible stock market fraud involving
BWRC.

"This is the continuation of the hearing on BWRC. We
decided to conduct the hearing in the PSE center to easily
get records if needed. In the course of the previous
hearings, some officials would say that certain records
were not readily available," said lawyer Percival Flores,
chief-of-staff of the office of Sen. Raul Roco.

Ranking officials of the SEC led by chairman Perfecto Yasay
Jr., money market operations department (MMOD) director
Linda Daoang, brokers and exchanges department (BED)
director Elizabeth Martin have been invited to the hearing.
PSE president Jose Luis Yulo Jr. and chairperson Trinidad
Y. Kalaw were also invited.

The Senate committee likewise summoned BWRC president
Eduardo Lim Jr., corporate secretary Jose Salvador Rivera
Jr., and Dante Tan to attend the hearing.  The preliminary
findings by both the SEC and the PSE earlier showed that
businessman Dante Tan, chairman of Best World Gaming and
Entertainment Inc., had amassed a chunk of the company's
shares in the first half of the year without proper
disclosure. These shares were then sold through
questionable private placement deals which eventually
helped jack up BWRC's share price.

The SEC probe also showed that officials of PCCI, including
their families and relatives, traded heavily in the shares
of BWRC. The commission said it was possible that PCCI had
been trading the shares of BWRC on basis of privilege
information.  BWRC closed lower by P1 to P13 on Jan. 15. It
emerged as the most actively traded stock last week with
29.429 million shares changing hands for a total of
P407.285 million.  (Manila Times  17-Jan-2000)

NATIONAL STEEL CORP.: Would-be buyers' capital only $50M
--------------------------------------------------------
The potential buyers of National Steel Corp. are willing to
pump only $50-million into the troubled steel firm, and on
assurance that they get entitled to tariff shield against
imports.

The $50-million proposed capital infusion is way below the
$130-million needed-based on government estimates-to revive
the moribund steel firm.  Sources close to negotiations
said interested buyers included a group led by taipan Lucio
Tan and presidential adviser on iron and steel Johnny Ng.
The Board of Investments said it was reviewing the
prospective buyers' offer, but it stressed that the $50
million would only be treated as working capital and not as
a rehabilitation fund.

Meanwhile, downstream players proffered a better deal as
far as BOI officials were concerned. The downstream
players, BOI said, wanted to acquire National Steel lock,
stock and barrel even without tariff protection. The group,
said to be represented by the Philippine Steel Rolling
Mills Association or PSRMA, also agreed with the government
that the $50 million as offered by other bidders was not
enough.

PSRMA is willing to bid for National Steel, whose assets
are estimated at P30 billion, even without tariff
protection from government. PSRMA believes National Steel's
billet operations offer vast potential.  Downstream plant
operators produce intermediate products from steel billets.
National Steel as an upstream producer makes basic metals
or produces billets from imported steel slabs.

Despite its financial troubles, the steel plant remains
attractive particularly to local steel manufacturers.
National Steel can still have a very high re-sale value
especially if its viable assets are separated from non-
viable ones.

Presently the company's steel billet operation is idle, but
a source said the firm's hot rod coil, cold rolling and tin
plating operations are still viable and can be sold
separately.  National Steel's major creditors Philippine
National Bank and Land Bank of the Philippines want to
dispose of the steel firm's assets and liquidate them as
quickly as possible.

At the moment, investors have been unable to successfully
negotiate for a piecemeal purchase of National Steel assets
or even a bargain price for the entire company.  PSRMA is
composed of 18 domestic-based companies engaged in the
production of selected steel products such as steel bars,
angle bars, channel bars and nails.  (Manila Times  17-Jan-
2000)

PHILIPPINE NAT.BANK: Tan confirms plan to buy gov't stake
---------------------------------------------------------
Business Tycoon Lucio Tan confirmed yesterday he is
interested in acquiring the government's remaining 30-
percent stake in Philippine National Bank (PNB) and will
join the bidding for the block in an auction to be held by
the middle of the year.

"Yes I will," Tan said when asked by reporters if he
intends to join the public bidding aimed at fully
privatizing PNB.

Late last year, Tan became PNB's single biggest shareholder
after acquiring a total 35 percent stake in the bank
through share purchases the stock market and a stock rights
offering.  The government plans to fully divest itself of
PNB to raise cash for its budget and to honor its
commitment to the World Bank and the International Monetary
Fund (IMF) to reform the country's banking industry.

Analysts said the full privatization of PNB will help
address the bank's nagging problems particularly a
portfolio of non-performing loans that, at a ratio of 28
percent, is the highest among the country's largest banks.
PNB suffered a net loss of P244.3 million in the first nine
months of last year. For the whole of 1998, the bank lost
P7.25 billion after setting aside P8.88 billion as
provisions for bad loans.

It remains unclear what Tan's plans are for PNB. While he
has expressed optimism that PNB can be made profitable, he
has also raised the possibility of selling his stake.

"I will sell if the price is attractive," Tan told
reporters, and said the ideal time to sell is when he
secures the government's remaining stake in PNB.

However, most analysts believe that Tan will aggressively
bid for the government's stake and gain control of PNB so
that he can merge it with his own Allied Banking Corp.
(The Philippine Star  15-Jan-2000)

SHEMBERG GROUP: Inks rehab pact with 47% creditors
--------------------------------------------------
Shemberg Group of companies chief executive officer Benson
Dakay and representatives of four of the Shemberg
creditors' consortium member-banks signed Tuesday afternoon
the omnibus agreement that aims to grant the company a new
lease on life.

The four signatories represent 47 percent of the total
outstanding loans of the Shemberg group and the Dakay group
of companies.  However, the omnibus agreement has to be
signed by banks that hold 67 percent of the total loans and
approved by the board of directors of each signatory bank
and before it becomes operative.

The omnibus agreement seeks the reduction of outstanding
loans by 35 percent within 24 months from effectivity.
The loans will be reduced through the following: dacion en
pago (pay off using the non-performing assets of two
companies}, conversion of debt to equity, purchase of zero
coupon bonds by any of the borrowers, negotiated sales for
cash to third parties, properties owned by the companies
and sureties , advances or infusion of new equity by
existing stockholders or strategic investor and any com-
bination of the different options.

Under the agreement, between 45% and 50% of the unsecured
portion of the loan, comprising about 30 percent of total
loan, can be converted into equity. It also allows the
restructuring of the balance of the loan to be paid from
10 to 12 years.

Shemberg will be given a grace period of two years from the
date of effectivity, during which the company will only be
required to pay for the interest of the loan.  The
agreemnet only covers the loan secured by three of
Shemberg's plants and properties of companies belonging to
the Dakay group of companies and the unsecured loan used as
working capital, bared Dakay.

On the other hand, Dakay said he is going to meet the
creditor-banks of Shemberg Biotech Corp. today to work out
a similar agreement.  Dakay expressed confidence he can
also get a similar agreement with the creditor-banks of
Biotech since the company performance improved last year.

In 1998, Shemberg Biotech posted a P4.765 million operating
loss before interest, he pointed out.  The corporation
performed better last year when it already generated
P47.379 million operating loss before interest, as of end
October 1999.  The 1999 operating income more tha doubled
that posted for the year 1997 set at P22.25 million,

According to Dakay, Shemberg Biotech made the dramatic
turnaround due to the slight increase in the selling price
of two of its carrageenan types, the slightly lower cost of
local spinosum seaweed and improved productivity of the
factory.  The cost of goods sold went down from P237.416
million in 1997 and P241.1971 million in 1999.

He disclosed that Shemberg Biotech was able to bring down
operating expenses from P58.02 million in 1997 and P47.601
million in 1998 to P35.217 million last year.  The
moratorium on principal and interest payments granted by
its creditor-banks allowed Shemberg Biotech to meet its
cash operating needs, according to Dakay.

A memorandum of understanding with the long- term
multilateral lenders such as the Asian Development Bank
(ADB) and the British-based Commonwealth Development
Corp.(CDC) and with the short-term lenders was drafted and
signed last December to clean up the balance sheet.

The MOU also indicated the willingness of the creditor-
banks to rehabilitate and restructure the financial
obligations of the company, he added.  "We are looking to
year 2000 and beyond with much hope and optimism," Dakay
said.

The company's performance for the year is expected to
receive a boost from Colgate-Palmolive, which has assured
Biotech it will remain the second qualified supplier.
"With the rehabilitation in place for the company, we hope
to maintain and even increase our sales volume to the
Colgate Palmolive subsidiaries," he said. (Cebu Daily News  
14-Jan-2000)

UNIWIDE GROUP: SEC asked to recall convenience stores sale
----------------------------------------------------------
Equitable PCI Bank has asked the Securities and Exchange
Commission (SEC) to recall an order approving the sale by
the Uniwide Group of Companies of all its convenience
stores to local retail chain I Mart International Corp.

In its motion with the SEC, Equitable PCI said the sale is
in violation of the bulk sales law, which requires the
seller to apply the proceeds of the sale of the assets to
the pro-rata payment of the bona fide claim of its
creditors.  Equitable PCI said that First Paragon Corp.
will be denied of its duty to apply the proceeds to the
pro-rated payment of the bona fide claims of creditors
since the proceeds of the sale of FPC were placed under an
escrow account with Solid Banking Corp. subject to whatever
rights the creditors may wish to exercise.

FPC is the corporate vehicle of the Uniwide Group for all
its convenience stores.  "It is not for the creditors to
agree among themselves subject to the Commission's approval
to decide the amount that will be proportionately shared.
Rather it is FPC's obligation to apportion the proceeds to
the creditors based on the percentage of their respective
exposures and not the other way around," Equitable said.

Equitable said the sale would unduly prejudice and put to
naught its vested rights over the assigned leasehold rights
over FPC. It said that it posed no objection to the
proposed asset sale provided that its superior lien and
rights over the pledged shares and assigned leasehold
rights are fully recognized.

The assets of the sale, however, includes the leasehold
rights of FPC including advance rentals and deposits paid.
"As assignee of the lease contracts, the bank shall be
subrogated to all the rights of FPC upon the Uniwide
Warehouse Club's default," Equitable said.

"The intended transaction will leave FPC with no assets to
own and manage. Eventually, therefore, it would only be a
matter of time (before) FPC dies a natural death by way of
dissolution, which, if the bank may remind the commission,
is totally averse to the very idea of the petition co-filed
by FPC that is to rehabilitate the allegedly ailing
company," Equitable said.

The SEC approved last month the memorandum of agreement
entered into by FPC and I Mart involving the sale of 39
Uniwide Family Stores. I Mart submitted the best bid of
P145 million.  The commission said it decided to approve
the sale of the assets to prevent the further deterioration
of the FPC's assets.

Under the agreement, an escrow fund will immediately be
established upon the execution of the agreement. The escrow
agreement shall be for a period of 60 days.  The sale forms
part of the Uniwide Group's wide-ranging rehabilitation
plan aimed at bringing the discount retail chain back to
profitability.  (Manila Times  17-Jan-2000)


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

IPC CORP.: Debt restructuring plan unveiled
-------------------------------------------
IPC Corp's German white knight yesterday unveiled a debt
restructuring plan that would free the beleaguered company
from its huge debt pile but would also seriously dilute the
interests of existing shareholders.

Under German group Infomatec AG's proposal, IPC creditors
will be paid 20 per cent of their debt in cash and the
remaining 80 per cent in new IPC shares priced at 40 cents
each.  With IPC's debts totalling $291.5 million, this
could mean an issue of over 580 million new shares
(conversion shares). Infomatec and other unspecified
"investors" (investors) will be granted options to buy up
to 60 per cent of the conversion shares over three years.

Only thereafter will the remaining shares be released from
an escrow account to the creditors in stages.  The
exercise, if approved by creditors, shareholders and the
High Court, will give a final and comprehensive solution to
IPC's debt problems.

The company, which has now an issued capital of 1.2 billion
5-cent shares, will also get relief from a two-stage $130
million injection by Infomatec that will not only provide
working capital but also probably funds to repay the 20 per
cent cash portion of its debts amounting to an estimated
$58 million.

The investors will initially invest no less than US$20
million (S$33.3 million) in return for new shares priced at
25 cents each. The amount will include a US$5 million
convertible loan granted to IPC last September.

This would result in an estimated 80 million new shares to
be issued to Infomatec. Together with options for new
shares at 40 cents each, Infomatec will end up with up to
24.9 per cent of IPC's enlarged capital before the issue of
the conversion shares. Based on a debt figure of $291
million and the new shares to issued to Infomatec, the
proposal could result in the issue of about 1 billion new
shares.

Under the options for the investors to buy up to 60 per
cent of the conversion shares, in the first year, they can
buy up to 20 per cent of the conversion shares at 40 cents
each, and any or all of the other 40 per cent at 42 cents.
The following year, they may buy 20 per cent of the
creditors' shares at 45 cents a share and the rest at 47
cents. And in the third year, they can buy the remaining
shares at 50 cents.

Any shares not bought up in the three years will be
released to the creditors in six equal monthly tranches
after the expiry of that year's call options.  The
remaining 40 per cent of the conversion shares not subject
to the options will be released to the creditors in 36
equal monthly instalments.

In the stock market yesterday, IPC shares closed one cent
higher at 31 cents, with 12.3 million shares traded -- the
ninth most active stock yesterday. (Singapore Business
Times  14-Jan-2000)

LEWIS & PEAT RUBBER: Seeks Chapter 11 bankruptcy protection
-----------------------------------------------------------
One of the oldest and biggest rubber traders in the world,
Lewis & Peat Rubber, has filed for Chapter 11 bankruptcy
protection in the US and is in receivership in the United
Kingdom and Singapore.

The group, control of which had passed to Indonesia's
financially-troubled Bakrie group since 1993, is said to
have collapsed due to mismanagement and debts running into
the "tens of millions" of US dollars, sources said. In
Singapore alone, the company reported debts of US$62
million (S$103.5 million).  Most of the money was borrowed
in Singapore, originally for its trading facilities, but
was later lent to the group's US and UK operations.

"The US operation then used the money to buy rubber
plantations in Liberia and China, and with the falling
price of rubber found itself in financial difficulty and
unable to repay the Singapore loans," a source said.

He also disclosed that the Bakries had bought into Lewis &
Peat around 1993 as it fitted in nicely with their rubber
operations, which include plantations covering more than
55,000 hectares -- about double the size of Singapore -- in
Sumatra.

The group's US operations -- Lewis & Peat Rubber Limited
Partnership, Lewis & Peat Rubber Inc and Annar Latex Inc --
filed to be placed under Chapter 11 in a Connecticut court
on Monday. A filing for protection against creditors under
Chapter 11 of the US Bankruptcy Code will normally allow a
troubled company a chance to restructure its debt.

In Singapore, a group of about a dozen creditor banks led
by Rabobank of the Netherlands applied for the group's
operations here -- Lewis & Peat (Rubber) Holdings Pte Ltd
(LPRH), Lewis & Peat Rubber (Singapore) Pte Ltd (LPRS), and
Lewis & Peat Distribution Pte Ltd (LPD) -- to be placed
under the receivership of Ernst & Young's Ong Yew Huat on
Tuesday.

The Singapore companies had placed themselves under
judicial management earlier on Dec 27 after they found
themselves having difficulty in meeting cross-guarantees on
borrowings by sister companies in the US and in Britain.

However, the banks in Singapore decided to call in the
receivers to have more direct control over the company's
assets as under judicial management the managers were
accountable to all creditors and not just the banks.

The group's management, including the Bakries, could not be
reached for comment. A receptionist said they "were all not
around" and did not know when they would be available for
comment. The group, in which the Bakries have a 75 per cent
stake, has a staff strength of 15 in Singapore.

"We are in very preliminary discussions with interested
parties, mainly international concerns in the rubber
business," disclosed receiver Mr Ong.

The Singapore Commodity Exchange, where the firm was a
clearing member, said the company had resigned as a member
last Dec 14 and had squared and cleared all its futures
positions even before handing over its letter. (Singapore
Business Times  14-Jan-2000)


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

KRUNG THAI BANK: B400bn in bad loans could go to asset firm
-----------------------------------------------------------
Up to 400 billion baht in bad loans at Krung Thai Bank
could be split off to a new asset management firm in an
effort to clean up the state bank's accounts.

The loans, past due for more than 18 months, include assets
from Krung Thai as well as those from the merger with First
Bangkok City Bank in 1998.  Sources said the cabinet would
consider the rehabilitation plan next month. Cabinet
approval is required, as the government had previously
committed itself to using state funds to absorb losses
incurred from First Bangkok City Bank assets only.


The asset management firm would be fully owned by the
central bank's Financial Institutions Development Fund.
The exact amount of assets transferred by Krung Thai is
still being finalised.

"Once the transfer is complete, Krung Thai will be left as
a completely 'good bank'," one government official said.
"Krung Thai's capital adequacy will be about 10%, above the
minimum 8.5% [central bank requirement], with full
provisions against loan losses established."

Pairoj Vorapas, Krung Thai's chief operating officer, said
assets would be transferred at book value, with no
discount, since full loss provisions had already been set
aside.  Collateral pledged against the loans would also be
transferred to the asset management company, increasing the
chances of profits in the future as the economy improves
and assets are rehabilitated.  Mr Pairoj said a preliminary
plan called for Krung Thai staff to run the new firm.

"We believe the bank has sufficient staff qualified to
manage the assets. We can also retain outside consultants
for additional technical assistance."

Most of the bad loans represent property, commercial and
industrial loans.  One source said the transfer at full
book value would eliminate the need for Krung Thai to
realise any losses.  "Of course, the fact is that
taxpayers, through the Financial Institutions Development
Fund, will have to bear losses if assets can't be
rehabilitated."

The central bank last week announced new measures aimed at
encouraging local financial institutions to set up asset
management firms.  While non-performing loans have declined
through debt restructuring, separate management firms would
give banks greater flexibility in dealing with their worst
cases.

Five asset management firms have been set up to date,
including those by Bangkok Bank and Thai Farmers Bank, with
more expected over the next several months.  Still,
regulators are concerned that asset transfers with
management firms fully owned by local banks could be used
as a tool to cloak losses through accounting tricks.

Regulators are particularly concerned about how customers
will be treated in accounts for the transfer of
restructured customers from an asset management firm back
to the bank.  Sompoch Intranukul, executive chairman of
Siam City Bank, said management firms had to be considered
"bad banks."  He agreed that complications could arise in
transferring clients between a bank and its subsidiary
management firm.

But most delinquent customers needed working capital to
rehabilitate their businesses, he said, which meant banks
had to help.  One executive at Thai Farmers Bank agreed
that some operations and client services were available
only through banks.

While the central bank has expanded the scope of operations
for asset management firms, companies would still have to
turn to banks for services such as trade credits or foreign
exchange.  Shares of Krung Thai closed yesterday at 20
baht, up one, on trade worth 35.1 million baht. (Bangkok
Post  15-Jan-2000)

NOBLE PLACE CO.: 60% of shares go to Bangkok Bank in rehab
----------------------------------------------------------
Bangkok Bank has acquired 12.5 million shares, or 60.61 per
cent, of Noble Place Co as part of the latter's debt-
restructuring agreement with the bank. In a filing to the
Stock Exchange of Thailand (SET), the bank said that the
transaction was worth Bt249.22 million.  (The Nation  15-
Jan-2000)

STECON ENGIN. AND CONSTR.: Awaits court approval of rehab
---------------------------------------------------------
Stecon Engineering and Construction has asked the Stock
Exchange of Thailand to temporarily suspend trading
of its securities from Jan 17 till such time the Bankruptcy
Court decides whether its rehabilitation plan can be
proceeded under the court as sought by its creditors.
The court will hear the petition on Jan 17. (The Nation  
15-Jan-2000)

THAI FARMERS BANK: More losses ahead after 4th quarter loss
----------------------------------------------------------
Thai Farmers Bank Plc will see losses continue well into
this year after a fourth quarter 1999 loss expected at
12.28 bln baht, reflecting the impact of ongoing major
provisioning, SCB Securities.

At the same time, however, SCB said that stripping out the
provisions, the fourth quarter will likely have seen a
pick-up in interest margins and this will have underpinned
an improved performance at the operating level. Thai
Farmers Bank reported a third quarter net loss of 7.5 bln
baht.

"TFB has decided to transfer non-performing loans (NPLs)
worth 60 bln baht, instead of the earlier-planned 80 bln,
to its Thonburi asset management company (AMC)," SCB said
in a research note issued after a visit to the bank.

As of end-September, TFB had made 22 bln baht in provisions
for this 60 bln baht and "therefore, to absorb a 50 pct
loss on these NPLs, the bank had to make additional
provisions of 8.0 bln in the fourth quarter.  SCB
Securities said Thai Farmers has increased its loan-loss
reserves to 98.24 bln baht, meeting Bank of Thailand
regulations by end-October, and will probably have to add
some 12.7 bln in the fourth quarter in order to have
100 pct loan loss coverage.

Over the 11 months to November, Thai Farmers completed debt
restructuring of 93.7 bln baht, up from 70 bln at end-
September 1999. Of the of 93.7 bln, around 76.7 bln
represents bad debt restructuring, and the remaining 17 bln
pro-active debt restructuring.  SCB Securities said Thai
Farmers Bank management stated that NPLs under current BOT
criteria at end-November amounted to 186.5 bln baht or an
NPL ratio of 35.2 pct, down some 30.8 bln from end-
Septmeber.

The brokerage said that this improvement reflects write-
offs and transfers to its AMC. Excluding provisions, the
underlying bank operations are showing signs of progress
with net interest margins improving as recent capital
increases and lower deposit rates cut the cost of funds.

SCB securities said on this basis, net interest margins
could have improved to 1.8 pct in the fourth quarter from
1.25 pct in the third, which would translate into earnings
before provisions and tax of 431 mln baht, up from 108 mln.
Setting the loan-loss provision expense of 12.7 bln baht
against this gives a net loss of 12.28 bln for the fourth
quarter, it said.

"TFB will concentrate on cutting operating costs going
forward and is considering implementing an early retirement
program after last year's introductory exercise ... (which)
will help reduce personnel expenses by around 30-40 mln
baht per month.  In addition to the early retirement
program, TFB is also considering closing some of its
branches in order to bring its operating costs down," SCB
Securities said.

The brokerage also said that "management also told us that
the actual carrying cost for the closure of Phatra (the
finance company subsidiary) was only around 540 mln baht,
smaller than the 1.5 bln baht provision set aside in the
third quarter.

"To be cautious, the bank has decided not to write-back the
excess provision of 960 mln until it is certain that there
will be no further loss from the Chantaburi AMC to which
Phatra NPLs were transferred. It is possible that the
bank will write-back the provisions in the future. We
expect to see a turnaround in TFB's bottom line back into
positive territory after 2000 and healthier earnings in the
next few years. This will be a consequence of no more huge
provision expenses and an improvement in its operating
earnings on the back of continued improvement in net
interest margins. We project that its net interest margin
will increase to around 2.2 pct in 2000 with further
improvement onwards on the back of the shrinkage in NPLs,"
SCB Securities said.  (AFX News Limited  13-Jan-2000)

TOTAL ACCESS COMMUNICATION: `Coup' makes staff jittery
------------------------------------------------------
Aftershocks from the sudden management shake-up at Total
Access Communication (TAC) are beginning to be felt. Some
employees are worried about their futures, while others
hope the in-coming strategic partner, Norway's Telenor, can
calm the situation.

After his surprise sacking of executives loyal to Total
Access Communication's co-founder Poosana Premanoch,
Boonchai Benjarongkul, TAC's other co-founder and its
current managing director, wasted no time. He took his seat
and began work immediately.

To show that he is now Total Access Communication's supreme
boss, he called an executive meeting to review new
policies.  He also put his management team from United
Communication Industry (UCOM) in positions held by members
of Poosana's fraction. UCOM is Total Access's major
partner.

The reshuffle was not unexpected since Boonchai has long
wanted to dissolve Poosana's prevalent stronghold in Total
Access Communication.  The move also paves the way for
Total Access Communication to conclude a long-awaited
strategic partnership deal with Telenor. But there are
several lingering problems that Boonchai will have to
tackle.

One is the uncertainty being felt by TAC employees after
the coup.  Some of the employees said they had little
confidence in Boonchai's ability to steer Total Access
Communication through the intensely competitive
marketplace.

"We think that Poosana is much more appropriate than
Boonchai for the head position. Furthermore, it is Poosana
who ran Total Access Communication at the beginning of its
operation," they said.

A group of employees at Total Access Communication (TAC) is
mustering strength to fight Boonchai Bencharongkul's
management coup. Staff sources say a petition will be
circulated calling for Mr Boonchai to reinstate Mustapha
Mun-nga, a close aide and friend of TAC's ousted acting
marketing director Poosana Premanoch.  Some top executives
are discussing a mass resignation if the dispute over who
is in charge at the debt-ridden mobile-phone company is not
settled quickly, the sources claim.

Boonchai has announced that he would stay on as managing
director only temporarily before transferring controlling
power to the new partner.  "We cannot stand alone in the
mobile-phone business but need a foreign strategic partner
to foster the operation and service. It is a global trend,
which you cannot ignore," Boonchai said.

Apart from morale, another serious effect of the shake-up
is the suspension of most business activities, including
contract signings. Total Access Communication has even
frozen spending on marketing campaigns for now.  On the
first day of Boonchai's reign, rumours spread that
employees would rally in protest.

However, no rallies have been held and there were no mass
resignations, which was another rumour.  Furthermore, some
employees say the change is positive.  "Boonchai will help
TAC sweep away its notoriety, while the arrival of the
company's new partner will boost our morale," they said.

Telenor is one of the biggest telecom companies in Europe
and is in the process of merging with Sweden's telecom
company, Telia. If the merger is successful, it will become
the largest telecom company in Scandinavia.  This is not
the first time Telenor has tried to tie up with Total
Access Communication. Last year it talked about becoming a
strategic partner with UCOM and expressed similar interest
in Total Access at that time.  However it pulled out of
talks to concentrate on the merge with Telia.

This opened the room for Bell Canada to negotiate with
Total Access Communication.  While Bell Canada was said to
be making progress on the deal, Telenor returned again,
vying against Bell Canada for the strategic partnership.  A
telecom-industry source said that if Total Access
Communication gets a strategic partner, market competition
will intensify.

It is less well known that the real mastermind behind the
strategic partnership deal between Total Access
Communication and Telenor is Somers, a UK investment
company, which holds a major share in UCOM.  Rumours have
it that the investors in Somers are the Benjarongkul family
and executives from UCOM and Total Access Communication.
The other player in Somers is Credit Suisse First Boston,
which manages the company.  (The Nation, Bangkok Post  15-
Jan-2000)


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