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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

            Thursday, January 27, 2000, Vol. 3, No. 19

                                    Headlines


* C H I N A  &  H O N G  K O N G *

FUJIAN JIUZHOU GROUP: Smuggling scandal crashes shares
GUANGZHOU ETHYLENE: Sinopec takes on debt-ridden unit
KINTETSU JAPANESE FOOD CO.: Facing winding up petition
WIN SUCCESSFUL SECURITIES: Broker halted as theft alleged


* I N D O N E S I A *

PT NEWMONT MINAHASA RAYA: Court suspends operations


* J A P A N *

LONG-TERM CREDIT BANK OF JAPAN: Narrows loss
NIPPON CREDIT BANK: Net liabilities swell to 3.19T Yen
NISSAN MOTORS: Union protest challenges Renault
TOKYU DEPARTMENT STORE CO.: Issues new rehab plan


* K O R E A *

DAEWOO GROUP: Gov't sets aside 36T Won for liquidity crisis
DAEWOO MOTOR: Lays off 45 members of executive board
DAEWOO MOTOR: Asset merger with Ssangyong's before sale
HYUNDAI GROUP: Under probe for illegal sale of bonds
HYUNDAI MOTOR: Foreign firms pose threat to it
LG GROUP: Under probe for illegal sale of bonds
NARA BANKING CORP.: 2 major shareholders declared bankrupt
SAMSUNG GROUP: Under probe for illegal sale of bonds
SAMSUNG MOTORS: Creditors quash viability of Renault offer
SEOUL BANK: Gov't seeking new CEO from local,foreign banks
SK GROUP: Under probe for illegal sale of bonds


* M A L A Y S I A *

TIME ENGINEERING: Plans debt for bonds swap, share sale
TIME ENGINEERING: Creditors rumored to favor rehab scheme
TIME ENGINEERING: Seeks restraining order extension


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

BW RESOURCES CORP.: Ho not pulling out $30-M investment-yet
CAPITOL WIRELESS, INC.: Debt talks with creditors near end
MAXICORP INC.: Microsoft seeks high court aid on infringing
NATIONAL STEEL CORP.: SEC restrains seizure of assets


* T H A I L A N D *

BANKTHAI PLC: Report to SET on restructuring
CHANSRICHAVALA FAMILY: Bank issues debt demand, threat
DON MUANG TOLLWAY CO.: Restructures debt
NAMPRASERT CONSTRUCTION CO.: Debt plan hits snag
NATIONAL FINANCIAL: Posts wider annual loss
NEP REALTY & INDUSTRY: To raise capital to reduce debt
PREECHA GROUP: Reports debt-rehab progress to SET
SANSIRI PLC: Plans to recapitalize, lose debt, change focus


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

FUJIAN JIUZHOU GROUP: Smuggling scandal crashes shares
------------------------------------------------------
Ripples from a multibillion-dollar smuggling scandal have
spread into the mainland stock market, with top executives
of a listed company under investigation.  Shares in Fujian
Jiuzhou Group, a trading company based in Xiamen, have
collapsed since the firm announced last week that several
board members were being questioned by graft-busters.

The company's former chairman, Zhao Yuchang, was also being
grilled in the mainland's biggest smuggling scandal in five
decades.  "Zhao Yuchang and several board members are under
investigation," one official said. "It has to do with the
smuggling case."

Jiuzhou's share price hit an all-time low of 4.15 yuan
(about HK$3.87) on Monday on the Shenzhen stock exchange
after news of the scandal surfaced over the weekend,
traders said.  The stock hit a record 16.01 yuan in May
1997.  Jiuzhou's shares closed at 4.37 yuan yesterday, down
0.04 yuan from Monday.

The scandal is seen as a test of President Jiang Zemin's
determination to battle corruption.  Close to 200 people,
including customs and military officials, have now been
embroiled in the scandal, which involves the smuggling of
cars, crude oil, electronic goods and firearms.

In a hard-hitting speech this month, Mr Jiang said that
there would be "absolutely no leniency" and that those who
deserved heavy sentences would receive heavy sentences
regardless of who they were or what position they held.
The Shenzhen stock exchange quoted a company statement as
saying authorities had frozen the assets and bank accounts
of Jiuzhou and some of its subsidiaries.

The exchange quoted the statement as saying operations of
the group's industrial subsidiaries were normal but
investors should "pay attention to investment risks".
Jiuzhou, which also has interests in real estate
development and beer production, is one of the largest
companies in Xiamen.  According to the group's interim
report last year, Jiuzhou had assets of 1.16 billion yuan
at the end of June.

Meanwhile, Mr Jiang appeared to support a key Communist
Party Politburo ally whose estranged wife is caught in the
probe.  State television showed Mr Jiang on an inspection
tour of Beijing with Jia Qinglin, who was grinning from ear
to ear.  (South China Morning Post  26-Jan-2000)

GUANGZHOU ETHYLENE: Sinopec takes on debt-ridden unit
-----------------------------------------------------
A unit of the China Petrochemical Corp (Sinopec) has agreed
to merge with a debt-ridden ethylene plant, said state
media and officials yesterday.

The Sinopec Guangzhou Petrochemical Complex would merge
with the troubled Guangzhou Ethylene on the condition that
the Guangzhou municipal government takes responsibility for
part of its debts, the China Daily said.  The 8.4 billion
yuan (HK$7.96 billion) ethylene plant, once a key project
with a planned annual output of 220,000 tonnes, was
"regarded by industrial insiders as a wrong investment
decision," the newspaper said.

The plant halted production three months after it launched
operations in August 1997 because of mounting losses. It
resumed production last September after being put under the
trusteeship of Sinopec, state media said.  The Guangzhou
government had agreed to repay 2.5 billion yuan in debts
for the company, which had total liabilities of 7 billion
yuan, an official of the Guangzhou Petrochemical Complex
said.

"The ethylene company has registered capital of 1.3 billion
yuan and most of its debts are bank loans," said the
official.

Before the merger, Sinopec held a 10-per-cent share of the
ethylene plant while the Guangzhou government took 90 per
cent.  Meanwhile, Sinopec is expected to raise its sour
crude run capacity by 30 per cent to around 30 million
tonnes a year (616,400 barrels per day) by the end of this
year, said industry sources in Singapore yesterday.  This
raises its capacity from the current 22 million tonnes a
year.

Desulphurisers and sulphur recovery units were being added
to coastal refineries such as Jinling Petrochemical Corp
and Qilu Petrochemical Corp.  The two plants, currently
partly fed by domestic sour crude Shengli, were expected to
be able to run a combined 12 million tonnes (246,600 bpd)
of Middle East sour crudes by the end of this year, they
said.

This was on top of the existing sour crude processing
capacity of 17 million tonnes built up late last year at
subsidiary plants Maoming Petrochemical Corp and Zhenhai
Refining & Chemical.  The revampings were aimed at treating
more high-sulphur Middle East crudes, which were deemed
cheaper than low-sulphur crudes like West African and Asian
grades.

Industry sources said a price differential at more than
$1.50 per barrel between Middle East benchmark Dubai and
sweet crude Brent would make upgradings economically
viable.

"The sour crude run capacity will be close to 30 million
tonnes by the end of this year. The upgrading would give
our refineries better chance for survival," said a senior
industry official.

Industry sources said the revampings could also allow
coastal refineries to divert more domestic crudes to inland
plants, such as those along the Yangtze River.  Sinopec's
top two sour crude processors are Guangdong-based Maoming,
able to run 184,900 bpd of high sulphur crude, and Zhenhai,
at 164,400 bpd. (Hong Kong Standard  25-Jan-2000)

KINTETSU JAPANESE FOOD CO.: 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
Lai Sai Tim for the winding up of Kintetsu Japanese Food
Co. Ltd. A notice of legal appearance must be filed on or
before March 7.

WIN SUCCESSFUL SECURITIES: Broker halted as theft alleged
---------------------------------------------------------
The Securities and Futures Commission has suspended a small
brokerage's operations after its owner was arrested over
allegations he stole about $60 million in client assets,
according to sources.

Police yesterday detained Albert Au Wai-man, owner of Win
Successful Securities, the sources said.  A police
spokesman confirmed the arrest of a man in charge of an
unnamed securities company in Central yesterday, but he
refused to disclose the person's identity.

Twenty clients of Win Successful Securities yesterday filed
a report with police in which they alleged they had been
deceived by the brokerage, the police spokesman said.
Win Successful Securities officials refused to comment
yesterday.

Some clients alleged they had not received shares after
they had sent money to the brokerage to pay for them, the
police spokesman said.  Other clients claimed they had not
received money from the securities house after selling
shares through it. The 20 clients' combined losses from the
brokerage's actions was about $60 million, the spokesman
said.

Three clients said they had lost $10 million each in the
case, which is being handled by the Commercial Crime
Bureau.  After the clients alerted police, Win Successful
Securities requested permission from the stock exchange to
voluntarily suspend operations, the sources said. The SFC
subsequently issued a restriction notice on Win Successful
Securities, banning the company from carrying out any share
transactions for its 300 clients until otherwise notified.
The notice also restricted the company from transferring
any assets without SFC approval.

In a further action, the stock exchange suspended the
company's membership, the exchange announced.  The SFC and
the exchange have also begun an investigation into the
allegations, spokesmen of the regulators said. Hongkong
Clearing, the stocks clearing house, had yet to see any
settlements in default from Win Successful Securities, a
spokesman said.  However, since stock trades are settled
two days after transactions are made, the clearing house
would need that time to determine whether there were any
problems with the brokerage's trades, he said.

Win Successful Securities was renamed and restructured to
become a limited company from a sole proprietorship last
March. It was previously known as Hamburg Securities.
The company, which only carries out stock trading, was also
owned and managed by Au before the restructuring.  It has
200 cash clients and 100 margin clients.

Win Successful Securities was likely to be the first
default by a brokerage after several brokers collapsed two
years ago, the sources said.  As a result, the allegations
against the company could rekindle a debate about whether
the stock exchange should lift its $8 million compensation
cap on claims by clients of a collapsed brokerage, they
said.

In 1998, the stock exchange lifted the cap for clients of
CA Pacific Securities, Chark Fung Securities, Foreluxe
Securities and Foreground Securities so clients could
receive up to $150,000 each. These brokerages collapsed in
the first half of that year, largely because of the
regional financial crisis. The stock exchange lifted the
compensation cap in a move to restore the badly shaken
confidence of the brokerage community at the time. (South
China Morning Post  25-Jan-2000)


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

PT NEWMONT MINAHASA RAYA: Court suspends operations
---------------------------------------------------
PT Newmont Minahasa Raya, a unit of American gold mining
company Newmont Mining Corp., was upset Monday about the
injunction issued by a district court in North Sulawesi to
temporarily suspend its operations as long as its dispute
with the Minahasa regency remained in the courtroom.

"We are absolutely appalled by the court's decision,"
company president Rick Ness said in a statement.  "At a
time when Indonesia's international credibility is under
intense scrutiny, that a court would issue an order against
a foreign company investor clearly outside of any
reasonable interpretation of the law is simply mind-
boggling. Obviously, there are other considerations at work
in this case," Ness added, describing the court's decision
as "spurious."

The Tondano court issued a temporary ruling on Saturday to
bar the company from pursuing its mining activities in
Ratatok, Minahasa, until the court completed the hearing of
the suit filed by the Minahasa regency against the company.
Regent Dolfie Tanor filed the suit last year in local court
against Newmont for the latter's refusal to pay C-class
taxes to the regency administration.

The C-class tax is levied for the exploitation of
industrial minerals and building materials, which are in
the C category according to the country's mining law.
The building materials and industrial minerals include
stone, gravel, sand, kaolin and zeolite.

Under the existing law, the right to license the
development of the commodities lies with the local
administration and tax proceeds go to the local
administrations.  The regency argued that Newmont had
violated the law by refusing to pay the C-class taxes.

Newmont admitted that it extracted the C-class mining
materials, but it did so to enable it to access the gold
ore underground. The removed top soil is termed
"overburden" in the mining industry.  The company said it
by no means used or sold the overburden for commercial
purposes. As such, it is not obliged to pay taxes on them.

Ness noted the Minister of Mines and Energy in a letter
dated Dec. 17, 1999, to Minister of Home Affairs Surjadi
Soedirdja confirming that Newmont's position was correct.
Ness warned that the court's temporary ruling would have an
impact on the local economy as thousands of workers would
lose their jobs if the court's temporary ruling was
approved by the higher court.

He said Newmont would vigorously pursue all legal efforts
to prevent the provisional ruling from taking effect.
He said his company appealed the ruling, noting that the
ruling could not take effect if it was not approved by the
higher court.

"We'll go the Supreme Court if we have to," Ness said.
"This decision is clearly without legal basis, erodes the
rule of law and will constitute another blow to
international confidence in Indonesia."

Newmont Minahasa Raya is 80 percent owned by Denver-based
Newmont Mining Corporation and 20 percent owned by Tanjung
Sarapung and local businessman Yusuf Merukh.

A top official of the Ministry of Mines and Energy
meanwhile expressed concerns on Tuesday over the closure
order issued by a district court in North Sulawesi to gold
mining company Newmont Minahasa Raya.

Acting Director General of Mining Suryantoro said the
ministry would seek to find an out-of-court settlement for
the dispute between the company and the Minahasa regency so
that the company could continue operations.

"We are really concerned with the suit filed by the
Minahasa regency against the company. If Newmont's
operation is closed, that will amount to a violation by the
government of the contract of work awarded to the company,"
Suryantoro said on the sidelines of the seminar on
geothermal power.  "Thus, we'll try to resolve the dispute
out of court," he was quoted by Antara as saying.  (The
Jakarta Post  25,26-Jan-2000)


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

LONG-TERM CREDIT BANK OF JAPAN: Narrows loss
--------------------------------------------
Long-Term Credit Bank of Japan, now under temporary state
control, said Friday that its net operating loss at the end
of September 1999 was 346 billion yen ($3.3 billion). That
was a decrease from 679.9 billion yen in September 1998.

There was a net credit cost of 582.1 billion yen. The cost
stemmed from an extraordinary loss due to the sale of
"inappropriate" assets of approximately 2.9 trillion yen to
the Resolution and Collection Crop., or RCC, in August
1999, the bank said.

These losses were offset by a 936.6-billion-yen increase of
the temporary nationalization account. Net income after tax
was zero, LTCB said. The temporary nationalization account
totaled 3.723 trillion yen at the end of September 1999.
(The Asian Wall Street Journal  24-Jan-2000)

NIPPON CREDIT BANK: Net liabilities swell to 3.19T Yen
------------------------------------------------------
Nippon Credit Bank announced Monday that its net worth
stood at minus 3.19 trillion yen when accounts for the
first half were closed at the end of September, a position
99 billion yen worse than in March. The failed lender also
reported a pretax loss of 99.6 billion yen, much of it
stemming from declines in the value of real estate held as
collateral, which forced it to set aside more bad loan
reserves.

Total net liabilities at NCB and Long-Term Credit Bank of
Japan, the two long-term credit banks under state
administration, currently stand at 6.91 trillion yen. Most
of the deficit will be covered by money from state coffers.

Problem loans, as measured by criteria set forth under the
financial revitalization law, ran to 3.89 trillion yen at
NCB. Bad loans have declined to 370.3 billion yen, however,
since a great deal of the loans were sold to Resolution and
Collection Corp., the state-backed debt collection concern,
in and after October. It leaves the percentage of
nonperforming loans at the bank near 9.6%.

"We will soon start narrowing down the list of candidates
wishing to take over our operations, as talks aimed at
finalizing terms are under way," NCB President Takuya Fujii
told the press the same day. The former Bank of Japan
official did not suggest when the decision would be made.
(Nikkei  24-Jan-2000)

NISSAN MOTORS: Union protest challenges Renault
-----------------------------------------------
Renault will face one of the most public challenges to its
role in managing Nissan Motor today when angry labour
unions march on company headquarters in Tokyo.

As many as 10,000 are expected, which would make it one of
the largest protests targeted at one company in recent
Japanese memory.  The protest underlines increasing
tensions in the 10 months since Renault stunned the
Japanese public by buying 36.8 per cent of Nissan last
March.

Some upper level management, dealers and affiliated parts
makers are frustrated with the French team's abrupt style,
highlighted in the wide ranging three-year restructuring
unveiled last October.  But apart from small local
demonstrations, unions have kept quiet until now.

Carlos Ghosn, Nissan's chief operating officer drafted from
Renault, is trying to push through a restructuring that
includes five factory closures and 21,000 job cuts. Some of
the most vocal opposition has come from union members in
Murayama, a factory in Tokyo set to close next March.

"Those drastic plans don't work in Japan," said one
official at the Murayama branch of the All Japan Metal and
Machinery Information Workers Union, which is leading
today's demonstration. "We need a plan that is based on
mutual understanding with the workers."

Union leaders are expected to make several demands,
including that Nissan continue production at Murayama and
improve provisions for workers uprooted by shifting
production lines to other plants. (Financial Times  25-Jan-
2000)

TOKYU DEPARTMENT STORE CO.: Issues new rehab plan
-------------------------------------------------
Japan's Tokyo Department Store Co. on Friday released a new
restructuring plan, centering on efforts to sell off units,
revamp unprofitable stores, clear up latent losses from its
balance sheet, reduce debt and wipe out accumulated losses.

The company cited a worse-than-expected business
environment as the need for the new plan. The company had
been moving forward with restructuring efforts based on a
five-year management plan released in 1998.

The major Japanese department-store operator said the plan
is aimed at returning the company to the black on a group-
net-profit basis for the year ending January 2002. Tokyu
will also target profitability for all its stores for the
year ending January 2005. Tokyu said it aims to return
making dividend payments in the year ending January 2003.

Under the plan, Tokyu expects to report special losses
totaling 65.5 billion yen on a group basis, and 53 billion
yen on a parent basis, over the next five fiscal years
starting this year. (The Asian Wall Street Journal  24-Jan-
2000)


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

DAEWOO GROUP: Gov't sets aside 36T Won for liquidity crisis
-----------------------------------------------------------
The government has decided to make 36.2 trillion won
available against a possible liquidity crisis facing
investment trust companies should investors with heavily
tied Daewoo bonds decide to call in their investments next
month.

Cash calls are estimated to amount to 30 trillion won,
according to market watchers.  The Bank of Korea (BOK)
would intervene and buy bonds in order to keep interest
rates at bay and prevent market instability.

During a meeting of senior economic bureaucrats presided
over by Vice Finance and Economy Minister Uhm Rak-yong,
these and other market stabilization measures were decided
on.  According to this emergency package, the BOK will go
to the extent of directly buying bonds from the markets to
stabilize interest rates at first sign of uneasiness.

The participants at the meeting saw eye to eye that stable
rates are pivotal, calling for the high-powered BOK
intervention to keep them stable.  On Feb.8, investors who
entrusted their money to investment companies will be
entitled to 95 percent of the portion of their investments
linked to Daewoo bonds.  Therefore, the investors are
feared to make massive cash calls on their investments,
bringing a liquidity crisis to the secondary financial
institutions that are heavily exposed with Daewoo bonds.

Late last year, the government had decided to adopt the
format by which the longer the investors wait the larger
the portion of their investments tied to Daewoo bonds are
guaranteed.  It was a scheme to discourage investors from
redeeming their investments all at once and risk toppling
the financial markets.

The liquidity provision package has it that the banks will
be tasked to buy bonds held by investment trusts to keep
them liquid. Should this prove to be inadequate, the BOK
will buy the bonds directly from the markets.  The 36
trillion won to be made available includes 21.2 trillion
won in investment trusts' funds; 4 trillion won from
securities firms and 8 trillion won in the bond market
stabilization fund; 2 trillion won in securities financing
fund and 1.2 trillion won in cash set aside by the Korea
Asset Management Corp. to buy Daewoo bonds. (Korea Times
24-Jan-2000)

DAEWOO MOTOR: Lays off 45 members of executive board
----------------------------------------------------
The auto unit of South Korea's insolvent Daewoo Group on
Tuesday laid off 45 members of its executive board as it
slimmed down and revamped its operational structure, the
automaker said.

"The company carried out a mass reduction of executive
board members and structural reform in order to lay the
foundation for efforts to turn itself around," Daewoo Motor
Co. said in a press statement.

The removal of 45 board members brought to 93 the number of
board members of Daewoo Motor Co. who have been laid off in
the downsizing which started in August last year when the
group started coming down.  The 93 laid-off executives
represent 43 percent of the original 216 board members.
Another 47 executive members turned into short-term
tentative employees in charge of supporting the sell-off of
Daewoo Motor facilities and coporate restructuring.

Should they be included, 65 percent of the original board
members have been cut off.  The move came after Seoul
agreed to buy out 6.7 billion dollars in outstanding debts
owed by the Daewoo Group to around 200 foreign banks for
around 40 cents to the dollar with a package worth around
two billion dollars.

The compromise, reached after months of tense negotiations,
is expected to speed up the rehabilitation and sale of
Daewoo Group units and allow the group to be finally
dismantled, officials said.  (Agence France Presse  25-Jan-
2000)

DAEWOO MOTOR: Asset merger with Ssangyong's before sale
-------------------------------------------------------
Daewoo Motor Co's creditors will merge the automotive units
of Daewoo Motor and debt-free assets of Ssangyong Motor Co
into a new entity prior to selling them to a third-party
investor, Yonhap News Agency said, citing industry sources.
It said the merged entity will issue new shares for
acquisition by a prospective buyer.  Daewoo's creditors
will contact potential buyers between today and
tomorrow and accept letters of intent by the end of this
month, it said.  (AFX News Limited  25-Jan-2000)

HYUNDAI GROUP: Under probe for illegal sale of bonds
LG GROUP: Under probe for illegal sale of bonds
SAMSUNG GROUP: Under probe for illegal sale of bonds
SK GROUP: Under probe for illegal sale of bonds
----------------------------------------------------
Three of Korea's largest conglomerates, Hyundai, Samsung,
LG and SK which issued large amounts of bonds overseas last
year under the pretext of attracting overseas investment,
are now being charged with selling a substantial amount of
the bonds illegally in the domestic market.

The Financial Supervisory Service (FSS) said Monday that it
is looking into levying a total fine of W3 billion on six
subsidiaries of three conglomerates if the charges prove to
be true. If this happens, this would be the first time that
the FSS has resorted to such measures since its
introduction last June of punitive fines for filing false
reports in the issuance of debt instruments.

The FSS and securities industry sources stated that the
three conglomerates had reported that they planned to issue
overseas convertible bonds (CB) and bonds with warrant (BW)
overseas to improve their financial status, but that it
appears that over W1 trillion of the issued bonds were sold
actually domestically. The FSS has decided that such
unauthorized sales of overseas securities in the domestic
market are in violation of the Securities Exchange Law, and
is now looking to charge the companies that issued the
bonds and the security corporations that oversaw the
issuance of those securities under the law. If found
guilty, all parties face a maximum fine of W500 million
each.

The FSC said when chaebol groups are found to have sold
overseas-issued bonds in domestic markets in irregular
means, it will exclude the proceeds from their self-efforts
for debt cuts.

"They promised to raise foreign capital through the
issuance of bonds. But if they had sold them in domestic
markets, it represents a breach of agreement," an FSC
official said. "When we examine their accomplishments in
improving capital structure in March, we will take this
into account."

If a chaebol group turns out to have failed to attain the
200-percent debt-to-equity target because of the
subtraction, it will face financial sanctions, he said.
According to anti-chaebol activists, illegal uses of
overseas-issued BWs for wealth inheritance is also
widespread.

"Unlike domestic laws, BW's bonds and warrants for the
purchase of new stocks can be divided in overseas capital
markets. Taking advantage of the loophole, the chaebol's
heirs-apparent bought BWs through affiliated overseas
investment funds before selling the bond parts abroad and
bringing home the new-stock warrants," said an activist at
the People's Solidarity for Participatory Democracy.

Hyundai units face a total of W1.5 billion in fines, with
Hyundai Electronics, Hyundai Construction and Hyundai
Securities all charged. Two Samsung subsidiaries, Samsung
Corp. and Samsung Securities could be slapped with fines of
up to W500 million each, while LG Investment and Securities
also faces a W500 million fine.

One high-ranking FSS official said Monday that any funds
found to have been raised through unauthorized transactions
would be excluded in calculating the foreign capital
attraction and capital increase for each group. This
would, in turn, make it harder for business groups found
guilty to come in under the 200% ceiling for debt-to-equity
ratios. (Digital Chosun  25-Jan-2000)

HYUNDAI MOTOR: Foreign firms pose threat to it
----------------------------------------------
The prospect of foreign owners acquiring two of South
Korea's three carmakers poses a significant threat to
Hyundai Motor, its biggest carmaker, just as it is
recovering from the nation's financial crisis.

The possible takeover of insolvent Daewoo Motor and its
Ssangyong Motor subsidiary by either General Motors or Ford
Motor of the US and Samsung Motors by France's Renault
would break open South Korea's closed car market, which is
dominated by Hyundai with a 75 per cent market share.

Foreign competition in the country's car market, the second
largest in Asia after Japan, would create a new roadblock
to Hyundai's ambitions. Having survived a sharp fall in car
sales in 1998, Hyundai is now aiming to become one of the
top five global carmakers by 2010.

Hyundai took advantage of the shake-up of Korea's car
industry, triggered by the nation's economic crisis, to
acquire bankrupt Kia Motors, which further strengthened its
dominant position.  A rise of nearly 50 per cent in total
domestic car sales last year, from an admittedly dismal
performance in 1998, is expected to result in estimated net
earnings of Won315bn ($279m) - excluding Kia. In 1998,
Hyundai recorded a loss of Won33bn.

Kia is also on the rebound, with estimated profits of
Won168bn due to suspended financial payments under a debt
restructuring programme. Kia reported a loss of Won6,650bn
in 1998.  Overcapacity problems are also expected to abate,
with the factory utilisation rate expected to reach 80 per
cent this year, above the break-even point.

The proposed takeovers of Daewoo and Samsung would deliver
nearly half South Korea's annual production capacity
(including overseas plants) of 4.2m cars into foreign
hands, while Hyundai's overseas competitors would have 25
per cent of the domestic market, up from just 0.2 per cent.
Daewoo can produce 1.8m cars a year and Samsung 180,000.

Mark Barclay, automotive analyst at Samsung Securities in
Seoul, predicts that Hyundai's market share in the next few
years could drop as low as 50 per cent.  He says it will
fall to the level it stood at before the Kia takeover
because the new competitors, foreign carmakers, have better
technology and marketing skills.

The use of South Korea by foreign carmakers as a regional
export base would also threaten Hyundai's sales in Asia. GM
and Ford want to raise their market shares in Asia to 10
per cent and the acquisition of Daewoo would significantly
help them in achieving that goal.

Hyundai, playing on South Korea's strong nationalist
feelings, has warned that a foreign takeover of Daewoo
would "ruin" the nation's car industry - through factory
closures, job losses and increased imports of car parts -
even though it enjoys a boom in exports due to the weak
South Korean currency.

GM has countered Hyundai's allegations by saying it plans
to use Daewoo as its global base for the production of
small cars, which could add local jobs.  But Hyundai can do
little to stop the foreign takeovers. It lacks the
financial resources to acquire Daewoo, while it is still
busy integrating its operations with Kia. The government is
also opposed to Hyundai buying Daewoo because it would
result in a monopoly.

Hyundai says it might consider forming a foreign alliance
to make a joint bid for Daewoo assets, but it would
probably have to accept a minority role in any partnership
because of anti-trust concerns.

Analysts suggest that Hyundai might instead seek an equal
three-way division of Daewoo between Hyundai, a foreign
partner and local creditor banks that would keep the
carmaker under South Korean control.  Another option, to
nationalise Daewoo, appears to have been rejected by Lee
Hun-jai, the new finance minister, because he believes
foreign ownership of Daewoo would help promote market
reforms.

The best that Hyundai can hope for is a breakdown of talks
between local creditors and foreign bidders on how much of
Daewoo's $16.5bn debt to write off. Similar disagreements
on the assumption of Kia's debt allowed Hyundai to defeat
Ford in the takeover of Kia.

Mr Barclay believes, however, that foreign competition in
South Korea could benefit Hyundai in the long-term. "It
will put pressure on Hyundai to improve its
competitiveness, while it will force it to seek an overseas
alliance, which it needs" to avoid being marginalised in
the industry. (Financial Times  25-Jan-2000)

NARA BANKING CORP.: 2 major shareholders declared bankrupt
----------------------------------------------------------
Nara Banking Corp's major shareholders -- Youthdesk Co Ltd,
Bo Sung International Co Ltd and Jewel International Co Ltd
-- have been declared bankrupt, creditor Korea First Bank
said.

Nara Banking Corp was ordered to suspend operations for
three months last Friday due to a liquidity squeeze
triggered by the Daewoo crisis.  The Bo Sung group, which
has a 14.14 pct stake in Nara Banking Corp, had been
weighed down by the financial costs of its investment in
the merchant bank and has now been declared insolvent,
Korea First Bank said.  (AFX News Limited  25-Jan-2000)

SAMSUNG MOTORS: Creditors quash viability of Renault offer
----------------------------------------------------------
The local creditors of Samsung Motors have shot down any
possibility that they would accept a low-ball bid from
Renault to takeover the ailing firm. Responding to rumors
that the French carmaker offered W400 billion for Samsung
Motors, an official at Hanvit Bank, the major creditor of
the ailing auto firm, said that they would never sell
Samsung Motors at such a low price. The same bank official
said that local creditors have not begun official
negotiations regarding the sell off of Samsung's car
manufacturing unit and that neither party has made any
proposals or counter-proposals yet. (Digital Chosun  24-
Jan-2000)

SEOUL BANK: Gov't seeking new CEO from local,foreign banks
----------------------------------------------------------
The government has retracted its bid to commission the
management of Seoul Bank to foreign financial
organizations. Instead the government has decided to
normalize the operation of the ailing bank by appointing a
bank president from candidates among local and foreign
institutions.

However, industry observers pointed out that the
government, in the last one year and four months, attempted
to bring the bank back into normal operations. The current
government spent about one year trying to sell Seoul Bank
to a foreign buyer and for the other four months searching
for a foreign financial organization to operate Seoul Bank
on a commission basis.

One high ranking official at the Financial Supervisory
Commission (FSC) said the government failed to find a
prospective foreign specialist to run Seoul Bank because
qualified candidates are no longer available. The
official added that the FSC will appoint a new chief
executive officer after rummaging through local and foreign
professional managers instead of seeking a foreign
specialist to operate the bank.

When the recruitment of the new CEO is settled, the
financial watchdog plans to workout detailed measures to
sell-off Seoul Bank in the second half of the year.
(Digital Chosun  24-Jan-2000)


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

TIME ENGINEERING: Plans debt for bonds swap, share sale
-------------------------------------------------------
Time Engineering Bhd plans to swap some of its debt for new
bonds and raise about 3.2 billion Malaysian ringgit (S$1.4
billion) through the sale of shares in its
telecommunications unit as it struggles to stay afloat.

According to documents obtained by Bloomberg News, Time,
which sought court protection from creditors in July 1998,
will swap RM900 million of its RM4.8 billion in debt for
new bonds.  Time will also sell shares in Time dotCom Bhd
in what's likely to be the biggest initial share sale in
Malaysia in four years, after Petronas Gas Bhd raised RM3.4
billion in 1995. Time dotCom's IPO is expected to put its
market value at RM7 billion, twice that of Technologies
Resources Industries Bhd, currently Malaysia's biggest
cellular phone company.

Time's plan "allows all creditors to obtain full
repayment," the company told creditors in the statement.

The latest proposal shows that Time, which is 46.7 per cent
owned by Renong Bhd, Malaysia's biggest industrial group,
wants to work through its debt problems on its own,
discarding earlier plans to sell all or part of Time
dotCom, which owns the country's biggest fiber-optics cable
network.  Shares of Time rose 4 sen, or 1.2 per cent, to
RM3.30, with 10.7 million shares traded, more than double
its six-month daily average. Renong shares gained 1 sen, or
0.4 per cent, to RM2.87.

Under the new plan, Time will sell a "significant stake" in
Time dotCom, while retaining 51 per cent of the company,
which has interests in mobile, fixed-line, pay-phone and
Internet businesses.  Time plans to sell about 1.1 billion
shares, or about 48 per cent of Time dotCom, at RM3 each. A
29 per cent stake will be sold to a strategic investor,
while the rest will be sold to the public. About RM450
million of the money raised through the share sale will be
used as working capital, the documents said.

An international merchant bank will be appointed to
"undertake a fair valuation of Time dotCom," Time said.

The documents also noted that as part of the plan, Time
will convert RM900 million of debt into 5-year bonds, with
124 million warrants attached, and sell 50 million Renong
warrants to raise RM50 million.  Time's court protection
expires on Jan 28. According to the documents, court
protection is expected to be further extended by an
unspecified period. The company lost RM2.3 billion in 1998,
hurt by Malaysia's recession and decade-high interest
rates. (Singapore Business Times  25-Jan-2000)

TIME ENGINEERING: Creditors rumored to favor rehab scheme
---------------------------------------------------------
Time Engineering continued to hog the limelight amid talks
that its creditors have agreed to its restructuring plan to
retire loans amounting to RM4.5 billion (S$2 billion).

The counter rose 38 sen to RM3.68. Its warrants were even
more impressive, jumping by 53 sen to RM1.90 on heavy
volume. Besides issuing new shares and other instruments,
it will list some of its assets. Time Engineering's parent,
Renong Bhd, can now breathe easier following the big jump
in the share price of Time Engineering and its other quoted
assets. Renong rose 19 sen to RM3.06 yesterday.

The marked improvement in Renong's share price has also
helped United Engineers Malaysia, which owns 32.6 per cent
of Renong. UEM borrowed RM2.34 billion (S$1 billion) to buy
the shares at RM3.24 apiece in 1997. Merger boost for Arab-
M'sian ARAB-Malaysian Corp gained 49 sen to RM3.46 on
expectations that a company in its stable, Arab-Malaysian
Merchant Bank, is set to clinch a slot in the consolidation
of the Malaysian financial sector. All financial
institutions have to sign tentative merger pacts by
the end of this month. (Singapore Business Times  26-Jan-
2000)

TIME ENGINEERING: Seeks restraining order extension
---------------------------------------------------
Time Engineering Bhd said yesterday it applied for an
extension to the restraining order against its creditors
which expires on Jan 28, supported by an alternative
restructuring plan which includes the listing of its unit
TIME dotCom.

A Time Engineering statement said the alternative plan was
prepared by the Corporate Debt Restructuring Committee
while the government makes a decision on Singapore
Technologies Telemedia Pte Ltd's bid for Time
Telecommunications Sdn Bhd. The independent financial
adviser on the bids, NM Rothschild & Sons (Singapore) Ltd,
recommended Singapore Technologies' offer, it added.

Time "seeks to present an alternative viable debt
restructuring proposal in the event the Singapore
Technologies bid is not approved by the government".

The alternative plan will see TIME dotCom Bhd restructured
to wholly own TIME Telecommunications Sdn Bhd, TIME
Wireless Sdn Bhd, TIME Reach Sdn Bhd and TIME Sat Sdn Bhd,
it said. A substantial portion of the debts owed by these
units will be converted into equity and the remaining debts
restructured, it said.

Under the plan TIME dotCom will be listed on the main board
of the Kuala Lumpur Stock Exchange in the category of
Infrastructure Project Companies. There are also plans to
sell a stake in TIME dotCom to a strategic investor.

The current indicative value of the telecommunications
business is 7 billion Malaysian ringgit (S$3.1 billion) and
including other assets this should come up to RM8.5
billion, it said. However, this valuation is subject to
review and confirmation by independent consultants, it
added.

Meanwhile, Renong Bhd, which owns 46.7 per cent of Time,
said yesterday the future listing of its unit, Prolink
Development Sdn Bhd, on the KLSE was contemplated, while
the disposal of its stake in Commerce Asset Holding Bhd
would be consistent with the structured asset disposal
programme.

However, Renong stressed that it was not in discussion with
any party currently regarding the divestment of its
interest in CAHB. (Singapore Business Times  26-Jan-2000)


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

BW RESOURCES CORP.: Ho not pulling out $30-M investment-yet
-----------------------------------------------------------
Macau casino kingpin Stanley Ho has no plans to pull out
his $30-million (P1.2-billion) investment in the Philippine
gaming firm BW Resources Corp. but is uncertain about
putting any new money into the country, a company official
said yesterday.

Allen Mojica, a spokesman for the company, said Ho will
make a final decision on his investments when he returns to
the country on Sunday to attend the opening of his Jumbo
Palace floating restaurant.  Ho told selected Filipino
reporters in Hong Kong last Sunday that he was angered
about criticisms from Congress and the Catholic Church
about his investments in the Philippines.

"If I am really unwelcome ... I will go," he said.

To this, eight lawmakers had this short but curt message:
"Then go."

"I don't give a damn, really," said Rep. Raul Gonzales
(Lakas, Iloilo). "We don't need persons whose character is
(linked) with the shady underworld."

Ho has been named by an anti-crime watchdog group recently
as being a possible conduit for the drug trade, gambling
and other Chinese Triad operations.  Mojica would not
comment whether Ho was planning to sue the United People
Against Crime (UPAC), but instead warned the incident may
scare other investors who are looking for a "friendly
government with a friendly environment."

Rep. Michael Defensor (LP, Quezon City) said Ho's departure
"will relieve all of us of a jumbo headache."

He said Ho's threats to pull his money out of the country
are empty since he claimed the tycoon's investments here
are mostly promissory.  Ho had said that his other possible
investments in the Philippines include a hotel complex near
the Ninoy Aquino International Airport, a high-speed
hydrofoil complex between Manila and the Subic freeport and
housing projects.

Defensor said "the houses which the casino mogul promised
to build are still castles in the air."

The congressman said that Ho's projects will depend heavily
on the success of local gaming operations.  "In short,
profits of his proposed casinos will be funneled to housing
... this is some sort of a consuelo de bobo (consolation),"
he added.

Defensor described Ho's jumbo restaurant as a Trojan horse,
which will soon "spill out not culinary delights but
mahjong tables.  President Estrada should be wary of
gamblers bearing gifts. Above all, he should not play dice
with our future," he added.

A Palace official, on the other hand, expressed concern
over Ho's threat to pull out investments.  "That is a
genuine concern," said Presidential Spokesman Fernando
Barican.  "We would like to assure investors that the
Philippines is basically an investment-friendly country,"
he said, noting that Ho's case was "incidental."

Barican said he was "not aware" whether Mr. Estrada would
ask Ho to reconsider, but said the President's initial
reaction was that "it may be unfortunate" since the tycoon
had planned to enter into socialized housing projects with
the government, among others.

"We are not treating Ho any more specially than we are
anybody else. The laws remain the same, everyone is being
enticed to come in all these areas that have been open for
foreign investments," he said.  "Ho's particular investment
is a matter for him to decide," he added.

Still, Rep. Joker Arroyo (LAMP, Makati) said the country
should express elation over Ho's planned departure.  He
said that the casino king's floating restaurant "is an evil
monument to the Marcos past where it was docked during the
martial law years.  Now, that evil symbol is back," he
said.

For his part, Rep. Apolinario Lozada (Lakas, Negros
Occidental) challenged Mr. Estrada to prevent Ho from
investing in the country if authorities could verify if the
mogul is part of a Chinese Triad.

"As the commander-in-chief, Mr. Estrada is duty-bound to
ensure that foreign investors with upright moral
backgrounds are allowed entry into the country. Those who
have disreputable character, he should drive away, whether
they are his friends or not," he said.

According to the PNP Criminal Investigation and Detection
Group, Ho has no ties with any criminal group.  At the
Senate, Majority Leader Franklin Drilon lashed at Ho for
daring Mr. Estrada to say whether the gambling mogul's
investments are welcome.

"We do not even know whether he really has investments in
the country," he said.

Senate Minority Leader Teofisto Guingona said Ho could
leave any time he wants and he would not be missed at all.
For his part, Sen. Raul Roco said Ho is not the type of
businessman that the country should attract, adding that
the Philippines is already "overbooked (with such types of
businessmen and investments) as well as the consequent
illegal activities of prostitution and smuggling."

Sen. Loren Legarda said "the country can live without Ho.
We welcome productive and positive foreign investments...
but there are many sectors in the country that consider any
gambling enterprise as something we can live without," she
said.

Meanwhile, Rep. Roilo Golez (LAMP, Para¤aque), chairman of
the House committee on public order and security, said his
panel will continue with its probe on Ho's alleged
involvement in criminal syndicates.  He said they are still
waiting for reports from the Interpol and the Philippine
Center for Transnational Crime about Ho's activities.

Ho has invested about P1.2 billion in BW Resources Corp., a
firm that has become enmeshed in a clash between President
Estrada and Securities and Exchange Commission (SEC)
Chairman Perfecto Yasay.

Yasay testified last week that Mr. Estrada pressured him to
drop an investigation into allegations of manipulation of
BW Resources stock last year.  After opening at P2.04 last
year, BW Resources shares hit a high of P107 on Oct. 11
after Ho accepted an offer to take control of the company.
On Monday, the stock closed at P10.75. (The Philippine Star
25-Jan-2000)

CAPITOL WIRELESS, INC.: Debt talks with creditors near end
----------------------------------------------------------
Capitol Wireless, Inc. (Capwire) is nearing conclusion of
debt talks with creditor-banks. The international gateway
operator already agreed with the amortization schedule
proposal of its major lender.

The company's board reportedly agreed to the repayment
schedule of eight and nine years for the first two
tranches, as proposed by the Land Bank of the Philippines,
its biggest creditor. The company owes more than 300
million Philippine pesos (US$7.4 million at PhP40.607:US$1)
in the state-owned bank.

Capwire was earlier asking to push back repayment of the
principal to 10 and 11 years, as the amortization proposal
of the banks was deemed heavy and the company may not be
able to support operations.

"Capwire has submitted amortization schedule last January
13 to Land Bank and according to feedbacks, the total debt
restructuring is nearing approval," a Capwire official
privy to the debt talks told BusinessWorld.

Except for the amortization schedule, Capwire and creditor-
banks signed last December 28 the final terms and
conditions leading to the restructuring of its debt. Asked
how the shortened repayment schedule will impact on
operations, the official who refused to be named, said "at
least, we will not be burdened by interest payments."

The restructuring program involves the company's PhP908.83
million ($22.4 million) in obligations which will be paid
in two tranches. The first tranche totals PhP681.62 million
($16.8 million), or 75% of the total debts and the second,
PhP227.21 million ($5.6 million).  The repayment schedule
under tranche 1 will be eight years with a two-year grace
period on principal payments while tranche 2 will have a
nine-year repayment term with a three-year grace period.

The interest rate will be based on the yield of the 91-day
Treasury bill -- the benchmark banks use in pricing loans -
- plus a 2% spread annually which will be subject to
quarterly repricing.  Capwire, despite posting a PhP13
million ($320,000) net loss for end-1999, will be relying
on internally-generated funds to repay their debt to
creditor-banks. In an earlier interview, Capwire said the
amount of yearly amortization will vary each year as
financial model hinges on the availability of cash, which
means the money left after the expenses and budget will be
used for debt repayment.

The Capwire official added the company's performance is
"okay" if not for its Internet service provider, Wavenet
Phils., which registered a loss and dragged the company's
bottomline.  Moving forward, Capwire will strengthen
relationships with international long distance partners and
add new switching capacities for its gateway facility
business. (Business World  25-Jan-2000)

MAXICORP INC.: Microsoft seeks high court aid on infringing
-----------------------------------------------------------
The world's largest computer software manufacturer and
distributor has slammed the Court of Appeals for
frustrating its efforts to curtail the rampant piracy of
its programs in the Metro Manila. In a petition, Microsoft
Corp. asked the Supreme Court to overturn the decision of
the appellate court and uphold the National Bureau of
Investigation's (NBI) seizure in July 1996 of some
properties of Maxicorp. Inc., suspected as one of the
numerous firms that use and distribute pirated Microsoft
programs to customers.

The Washington-based firm owned by billionaire William
"Bill" Gates wants the High Tribunal to declare legal all
six search warrants the Manila Regional Trial Court (RTC)
issued to allow the NBI to examine Maxicorp's store at
Robinson's Galleria in Pasig. Microsoft, through local
counsel Rodrigo Lope S. Quimbo, said nullifying the
warrants will virtually allow copyright infringers to sell
their wares with impunity, to its detriment.

Aside from Microsoft, records showed Lotus Development
Corp. -- another known software developer -- also applied
for a search warrant against Maxicorp.  (Business World
26-Jan-2000)

NATIONAL STEEL CORP.: SEC restrains seizure of assets
-----------------------------------------------------
The Securities and Exchange Commission said it issued an
order protecting National Steel Corp against asset seizures
initiated by creditors until Feb 18 while regulators assess
its request for temporary debt relief.

In a three-page decision, the SEC said "all actions for
claims against National Steel pending or still to be filed
before any court, tribunal, office and/or body be deemed
suspended immediately and to last for 30 days."  The order
took effect on Jan 18.

National Steel, the SEC added, "is hereby enjoined from
disposing of its properties in any manner whatsoever except
in the ordinary course of its business and making any
payments outside of the legitimate expenses of its
business."

While the company's existing assets are sufficient to
settle about 16 bln pesos in debts, National Steel said in
an earlier petition that it "foresees the impossibility of
further paying its obligations and liabilities as they fall
due.  It will be practically impossible for (National
Steel) to resume its operations and rehabilitate itself
unless the SEC intervenes and declares (the company) in a
state of suspension of payments."

National Steel, suffering from mounting losses and serious
cash flow problems, indefinitely shut down its foundary
beginning November last year.  It was actually asking the
SEC to allow it to suspend debt payments for at least two
years while it looks for new investors to help restore the
viability of the company's operations.  The government has
an existing 12.5 pct stake in the company, while Marubeni
Corp has 5 pct. Hottick Investments Ltd owns the majority
82.5 pct.  (AFX News Limited  25-Jan-2000)


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

BANKTHAI PLC: Report to SET on restructuring
--------------------------------------------
BankThai Public Company Limited, through Mr. Nopwong
Ramakomut, Executive Vice President, reports to the Stock
Exchange of Thailand on the company's restructuring
progress.

On 23rd December, 1999, the Board of Directors of BankThai
Public Company Limited approved a resolution to carry out a
complete restructuring of the Bank's branch network
(Minutes of Board of Directors Meeting No. 18/2542). This
restructuring initiative is crucial to the ongoing business
viability of BankThai. It is aimed at significantly
improving the Bank's operating efficiency, strengthening
our market competitiveness, and is a major step toward our
wholesale banking proposition.

A detailed plan of the Bank's branch network restructuring
has been submitted to the Bank of Thailand. This plan takes
a three-point approach which are summarized as follows:

1. Eliminating costs associated with unprofitable branches
or branches whose characteristics do not comply with
BankThai's wholesale banking rationale. A total of 42
branches will be discontinued due to one or more of the
following reasons:

a. They are located in areas have limited economic
potentials for the development of wholesale banking
business.

b. They have a history of low transaction volumes.

c. They are not meeting Bank of Thailand's loan volume
requirements.

2. Opening new branches at locations where there are
promising factors for developing wholesale banking
business. At this time, the Bank has identified four of
these locations which are positioned in upcountry. More
locations may be added in the future.

3. Upgrading the remaining branches' capacity to handle
higher customer volumes as well as expanding their
capabilities to offer wider range of products and services
that are related to wholesale banking. Many of the sub-
branches will be upgraded to become full-service branches,
and some of the full-service branches will be converted
into regional offices.

No doubt there will be many significant impacts resulting
from the implementation of the above plan. However, the
Bank has already taken measures and made preparations to
minimize any negative effects that may arise.

1. Impact to BankThai:

Deposit accounts of the 42 discontinued branches value at
Baht 12,000 million, and represent 6.18 % of BankThai's
total deposits amount. The Bank expects that only a small
number of deposit accounts will be terminated by the
affected customers, and have taken measures to assure
adequate liquidity.

Loan accounts of the 42 discontinued branches will be
transferred to the closest branches that will still remain
in operation. These accounts value at Baht 3,900 million.
Meanwhile, the upgraded capacity and capabilities of the
remaining branches will enable them to handle the accounts
that are transferred to them.

2. Impact to BankThai Customers:

Deposit customers of discontinued branches will have the
choice of either transferring their accounts to the closest
remaining branches or they may close their accounts
prematurely without incurring any penalty on their accrued
interest. Again, customers will find that the many of the
remaining branches will have improved capacities and
capabilities to service them as mentioned above.

3. Impact to BankThai Employees:

The Bank will make a best effort to redeploy qualified
employees of the discontinued branches who wish to work at
other locations where the Bank has need for additional
manpower such as at the Head Office or the branches
targeted for upgrading. For those employees who otherwise
decide to leave the Bank, they are offered a generous
Voluntary Retirement Program package.  (Stock Exchange Of
Thailand  24-Jan-2000)

CHANSRICHAVALA FAMILY: Bank issues debt demand, threat
------------------------------------------------------
UOB Radanasin Bank has threatened the Chansrichavala family
with bankruptcy proceedings if the family persists in being
slow in responding to the restructuring of their debt with
the bank, Krungthep Turakij reported, quoting an unnamed
source. The source also said a team of loan restructuring
experts are being flown in from Singapore, where UOB has
its headquarters, to help in the operations of the bank's
asset management company. (Business Day  25-Jan-2000)

DON MUANG TOLLWAY CO.: Restructures debt
----------------------------------------
The creditors of Don Muang Tollway Company (DMT) have
agreed to help the ailing company restructure 10 billion
baht in debt, according to Industrial Finance Corporation
of Thailand (IFCT) Senior Vice President Vorayudth
Charoenloet.

Vorayudth said DMT failed to pay any debt since 1997,
adding that the company's current income could not even
match the interest payment.

"Creditors feel that DMT has a good chance of becoming a
viable company in the future, if creditors only reschedule
payment and reduce interest," he said.

The tentative debt plan will mean extending the payback
period of 13 years in addition to allowing a grace period
in the first seven years. Moreover, creditors agreed to
reduce the interest rate to MOR-2 from LIBOR+2.5 percent
DMT's major creditors include IFCT Tisco Finance Siam City
Bank and Bangkok Metropolitan Bank.

DMT began operating the tollway under the joint ownership
of Charoen Pokphande (CP) Group and Panichcheeva Group. But
in 1996 the company suffered a serious cashflow problem,
prompting the Government to intervene.  The Government
decided to buy 40 percent stake in the company, providing
30 billion baht to bail it out. The proceeds from the
Government were then used to pay some debts and expand the
tollway by 5.7 kilometers.

The Government's initial plan was to list DMT in the Stock
Exchange of Thailand. However, the state miss-calculated
its investment strategy, DMT did not generate sufficient
profit to allow it to be listed on the stock market. As the
problem worsened by mid-1997, IFCT stepped in to arrange a
low-interest 8.5 billion baht loan for DMT to refinance its
overseas loan. Moreover, it also arranged an additional 4
billion baht long-term loan from several local banks with a
rate of 11 percent in the first seven years, to be
increased to 12.5 percent between the eleventh and
fifteenth year.

The future of the tollway company still looks dim. One of
DMT's creditors said the debt restructuring plan would only
help DMT in the short term, citing the Government's failure
in planning traffic in the area.  In 1998 the Government
took away all traffic lights on Vibhavadee Road, resulting
in free-flow traffic on the lower level of the expressway.
In addition, it built local roads parallel to the tollway,
creating another alternative route for motorists.
Furthermore, the plan to revitalize the Hopewell project,
if accomplished, would only further damage DMT's prospects.
(Business Day  25-Jan-2000)

NAMPRASERT CONSTRUCTION CO.: Debt plan hits snag
------------------------------------------------
Creditors representing 31.97 per cent of Namprasert
Construction Co Ltd's debt yesterday postponed a vote on
its business rehabilitation plan after Bangkok Bank, a
major creditor, questioned some legal aspects of the plan.

Namprasert managing director Manut Pourpongpan said the
creditors agreed to postpone their meeting to vote on the
plan to next week.  Namprasert Construction and Kasemkij
Construction Co Ltd, which are related by shared ownership
of the Pourpongpan family, are in the top five of the
construction sector. They have debts totalling Bt8.7
billion, of which Bt1.8 billion is Namprasert's and Bt6.9
billion is Kasemkij's.

Manut said a Bangkok Bank representative questioned whether
it was lawful for the incomes of the two companies to be
consolidated under the rehabilitation plan.  Although the
firms share the same ownership structure, they are not
related legally, Manut said. The same group of creditors
also owns about 50 per cent of Kasemkij's outstanding debt.

The postponement of the vote on Namprasert might also delay
the vote on the debt rehabilitation plan for Kasemkij
because their plans are quite similar. The creditors were
originally scheduled to meet today to vote on the Kasemkij
plan, with the consolidation of its cashflow with that of
Namprasert as the contentious legal issue.

Under the plan, if a new project of Namprasert can generate
cashflow, the company will repay its old loans to the
creditors, who will lend fresh money for the company's new
projects. The old creditors will be entitled to get 60 per
cent of the total construction revenue from the new
projects. Of the remaining 40 per cent, 24 per cent will go
to servicing the debts of other creditors and the remaining
16 per cent will be consolidated into the cashflow of
Kasemkij.

Manut said Kasemkij Construction's rehabilitation plan is
similar to Namprasert Construction's because they rely on
the same management team. At present Namprasert is
undertaking three to five projects worth Bt7 billion. It is
expected to be able to generate income to pay back its debt
within five years.  Kasemkij has three projects in hand
worth Bt1 billion. It expects to repay its debt in 10
years.

"If the creditors delay a vote, they will hamper the
company's chance to bid for new construction projects. We
lost the opportunity to compete against other construction
companies last year because our operations were put on hold
due to the debt rehabilitation plan," Manut said.
(The Nation  26-Jan-2000)

NATIONAL FINANCIAL: Posts wider annual loss
-------------------------------------------
National Finance PCL of Thailand said it recorded an
unaudited net loss of 340.8 million baht ($9.1 million) in
1999, compared with a loss of 4.49 billion baht a year
earlier.

The company said in a filing to the Stock Exchange of
Thailand the narrowed loss was due mostly to reversal of
loan-loss reserves into income totaling 568.7 million baht.
In 1998, the finance company added 3.02 billion baht to its
loan-loss reserves against problem loans, weakening its
financial results.

National Finance set 1.69 billion baht in provisions last
year, bringing its loan-loss reserves last year, bringing
its loan-loss reserves above regulatory minimums. It
decided to reverse excess provisions back to income. The
finance company said loan-loss reserves reached 65% of full
requirements being phased in by the Thai central bank as of
end 1999.

The central bank required banks to set aside at least 60%
of the requirements as of the requirements as of end 1999,
rising to 80% in six months and 100% by end-2000. (The
Asian Wall Street Journal  25-Jan-2000)

NEP REALTY & INDUSTRY: To raise capital to reduce debt
------------------------------------------------------
NEP Realty & Industry PCl said it will raise capital to 3.5
billion baht ($94 million) from one billion baht, and will
use the funds from the share sale as working capital and to
restructure debt.

In a filing to the Stock Exchange of Thailand, the maker of
plastic bags said it will issue 250 million new shares at a
par value of 10 baht each. The company said it will reserve
150 million new shares for the conversion of warrants,
while the remainder will go to specified investors. The
company's shareholders are scheduled to vote on the plan at
a meeting Feb. 18. (The Asian Wall Street Journal  25-Jan-
2000)

PREECHA GROUP: Reports debt-rehab progress to SET
-------------------------------------------------
Preecha Group Public Company, through its director Vorayuth
Pongsuwan, has reported to the Stock Exchange of Thailand
that the Financial Restructuring Plan proposed by the
company was rejected by the creditors under CDRAC.

With the presence of seven creditors having a total loan
amount of 1,408.38 million baht, three creditors accounting
for 175.39 million baht or 12.45% of the loan of the
attendants, accepted the proposed Restructuring Plan, while
four creditors, accounting for 1,232.99 million baht or
87.55% of the loan of the attendants, rejected the proposed
Restructuring Plan.

In the next stage, Preecha Group Plc. will continue its
Financial Restructuring Plan by proposing a plan to each
creditor individually. The company will inform the SET if
any further progress of F.R.P. is made.  (Stock Exchange Of
Thailand  25-Jan-2000)

SANSIRI PLC: Plans to recapitalize, lose debt, change focus
-----------------------------------------------------------
Sansiri Plc, with Starwood Capital Group of the United
States as its partner, intends to recapitalize this year,
eliminate the rest of its debt, and to refocus on picking
up distressed properties at a discount for development.

Sansiri yesterday began taking over four distressed assets
for redevelopment. The four projects are a 39-storey
condominium in Soi Asok, a 40-rai housing estate in Soi
Watcharapol, and two rental apartment blocks, one each in
Sukhumvit Soi 12 and Wireless Road.

Company president Srettha Thavisin said the Asok
condominium would be handled by Starwood Property Fund, in
which Starwood Capital holds a 75% stake and Sansiri 25%.
The remaining three projects would be bought by Sansiri
from cash-strapped developers.  Starwood last year bid
successfully for the assets, paying 680 million baht, or
30.33% of the book value, to the Financial Sector
Restructuring Authority (FRA). The book value was 2.24
billion baht.

"Starwood Property Fund has completed preliminary talks to
settle debts with eight of 12 developers whose assets were
auctioned by FRA. The Asok project is the first asset
transferred to the fund under the asset-debt swap scheme to
clear debts," Mr Srettha said.

Sansiri was hired to manage sales and marketing of the Asok
condominium project, consisting of 261 units.

"Sales revenues and management fees from the four projects
will help turn our balance sheet from red to black this
year. The majority of sales income is expected to come from
the Watcharapol housing estate. We can't say more because
we only received ownership transfer today," he said.

Stock analysts said new investments were expected,
including the acquisition of non-performing loans from
commercial banks, because Sansiri has strong backing from
Starwood.

Sansiri is focusing on three property segments-detached
houses, downtown condominiums and rental apartments
targeting expatriates. These sectors have retained strong
demand, with falling interest rates expected to encourage
potential homebuyers to make a purchase.  Another segment
in focus is property management and leasing. Sansiri
Property Plus, a subsidiary in this sector, obtained ISO
9002 international certification of its business last year.

Starwood Capital Group's director for Asia, Bradford
Dockser, said the group was very confident about an upturn
in the Thai property sector as the government had made
efforts to deregulate and shore up the market. Starwood
entered the partnership last year with an option to hold a
51% stake in the Thai developer within three years.
Starwood and its affiliates now hold 7% equity in Sansiri.

Last year, Sansiri settled most of its debts. Its
outstanding debts stand at 770 million baht, down from 1.67
billion baht. This year the company will free itself from
its remaining Bt770 million in debt through an equity swap
and asset transfer -- the same strategy it used to reduce
debts in the past. Before debt restructuring, Sansiri was
carrying between Bt3 billion and Bt4 billion in debts.
The company plans to recapitalise to 13.29 billion baht
from 699 million in 45 months. It has already issued 18
million new shares to Starwood.

In the third quarter last year, Sansiri posted a net profit
of 12 million baht, reducing its losses to 395.4 million
baht for the first nine months.  Shares of Sansiri on the
Stock Exchange of Thailand yesterday closed at 9.4 baht, up
10 satang, on turnover worth 34.9 million baht. (Bangkok
Post, The Nation  26-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

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