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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

            Monday, January 31, 2000, Vol. 3, No. 21

                                   Headlines


* C H I N A  &  H O N G  K O N G *

BNP SECURITIES: Censured for short-selling violations
CHINA NATIONAL PETROLEUM: Listing proceeds not for debt
WAH NAM GROUP: Reports vulnerable position to HKSE


* I N D O N E S I A *

VAN DER HORST: Applies for judicial management


* J A P A N *

ARABIAN OIL CO.: To book special 2.58B Yen loss for FY99
CHISSO CORP.: To cut jobs,shrink PVC business in rehab
HITACHI CABLE: To record 2.7B Yen loss on Thai business
KEIO ELECTRIC RAILWAY CO.: Expecting annual loss
KEISEI ELECTRIC RAILWAY CO.: Expecting annual loss
NISSAN MOTORS: Domestic sales fall, rehab proceeding
SAGAMI RAILWAY CO.: Expecting annual loss
SEIYO CORP.: Parent reaches agreement on debt disposal
SHINKO CREDIT UNION: Fails on defaulted Princeton bonds
SHOEI CO.: To fight takeover bid, restructure
TOBU RAILWAY CO.: Expecting annual loss


* K O R E A *

DAEWOO GROUP: Banks offer credit to Daewoo-hit trust firms
DAEWOO MOTOR: Creditors set to implement workout program
KOOKMIN LIFE: SK intends to take over  
NARA BANKING CORP.: FSS taking steps to liquidate  


* M A L A Y S I A *

TIME ENGINEERING BHD: Revival plans focus after stay order


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

ATLAS CONSOLIDATED MINING: Chinese company to help rehab
BW RESOURCES CORP.: Senate committee subpoenas records
FIRST WOMEN'S CREDIT CORP.: Contempt order sought from SEC
HOOYA TECHNOLOGY: Taiwanese arrested for telephone fraud
PHILIPPINE NAT.BANK: Bad debt level worsens
PRIMETOWN PROPERTY GROUP: Some investors swap investments
SAN MIGUEL CORPORATION: In talks for new loans
SNC LAVALIN INC.: Sued by former local partner


* S I N G A P O R E *

CLOB INT'L: Effective Capital gets good response to plan


* T H A I L A N D *

SAMAKKI SARN (DOKYA)PLC: Founder ready to lose business
SIAM CEMENT PCL: Plans debenture offering
SIAM CEMENT PLC: Sells tile units as part of rehab
SUBMICRON TECHNOLOGY: Empire crumbles amid acrimony,debt
SUBMICRON TECHNOLOGY: Bankruptcy Court freezes assets


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

BNP SECURITIES: Censured for short-selling violations
-----------------------------------------------------
The Stock Exchange of Hong Kong yesterday publicly censured
the local securities arm of Banque Nationale de Paris for
failure to immediately report a massive short-selling deal
it had transacted on 28 August 1998. On that particular
day, the government's was engaged in a concerted attempt to
stop speculators from sinking the Hong Kong stock market
through a flood of short-selling.

The government suspected that a wave of short-selling was
an attempt to sink the local market and precipitate the
collapse of Hong Kong's currency peg to the US dollar.
Regulators said BNP Securities (Hong Kong) failed to
immediately report a $1.5 billion short-selling
transaction.  It was fined $500,000, and Yann Alexandre
Muzika, the unit's dealing director, and Chu Leung Ching,
its authorised clerk, were fined $50,000 and $30,000,
respectively, the exchange said.

In a statement, the exchange said BNP Securities (Hong
Kong) Ltd and Mr Muzika "failed to ensure" that Mr Chu
indicated that 962 transactions worth $1.489 billion
conducted on 28 August 1998 were short sales by inputting
short selling indicators into the exchange's automated
order-matching and execution system.

BNP said in a statement that the penalties arose from a
failure to comply with operational requirements at the
exchange, and that the breaches "did not involve any
illegal short-selling activity or any other market
malpractice whatsoever" by the BNP unit or the individuals
concerned. It said the errors concerned were corrected and
notified to the exchange on the next trading day, 31 August
1998, and that steps have been taken to prevent a repeat.

The SEHK, after hearing the cases on 31 March and 4 June of
last year, found a charge against two BNP Securities (HK)
executives, dealing director Mr Muzika, and its authorised
clerk Mr Chu.  All of the parties were publicly censured by
the SEHK.  According to stock exchange data issued that
day, short-selling transactions put through on 28 August
1998 totalled $7.3 billion.  The punishment was meted out
by the exchange's disciplinary committee.

BNP Securities (HK), Mr Muzika and Mr Chu had lodged an
appeal with the Disciplinary Appeals Committee of the SEHK.
At the meeting held on 8 January, the committee upheld the
penalties.  The censure of BNP Securites (HK) is believed
to be just the start of more penalties to be exacted by the
stock exchange on member firms concerning the short-selling
of shares during the period. Last year, the SEHK conducted
764 investigations, versus 304 in 1998, said Alec Tsui Yiu-
wa, chief executive of the SEHK. (Hong Kong Standard  26-
Jan-2000)

CHINA NATIONAL PETROLEUM: Listing proceeds not for debt
-------------------------------------------------------
A Chinese minister sought to reassure foreign investors on
Tuesday that proceeds from the country's biggest listing
would not be spent on employee severance packages or debt
repayment.  Contradicting earlier statements published in a
prospectus, Sheng Huaren, minister at the state economic
and trade commission, said "overseas investors should rest
assured" that funds raised by China National Petroleum Corp
would be spent on developing the oil and gas business.
CNPC is seeking to raise $5.5bn-$7bn through a dual listing
in New York and Hong Kong.

"Rumours overseas that (CNPC) will use the funds to solve
laid-off-worker difficulties or deal with non-performing
loans are without any basis," said Mr Sheng, whose
government body is responsible for large enterprises such
as CNPC. "This was a misunderstanding among foreign
circles, based on insufficient information."

He did not make clear whether a preliminary prospectus
circulated to some investors last month had been amended.
That prospectus said PetroChina, the name of the unit to
list, had earmarked the bulk of the initial public offering
proceeds for "debt repayment and severance compensation".

The IPO is scheduled for next month, but much depends on
the reception the issue receives from investors concerned
over CNPC's lack of transparency, high operating costs and
protected domestic market.  PetroChina is expected to have
between 400,000 and 500,000 staff, far fewer than the 1.5m
of its parent CNPC. CNPC has not explained where the funds
will come from to pay severance packages - which in the
absence of a welfare net typically falls to the state
companies - for some 1.1m workers scheduled to be made
redundant or re-assigned.

A failure of PetroChina's IPO would damp enthusiasm for two
other planned issues that are intended to strengthen the
domestic oil industry ahead of an upsurge in foreign
competition expected after China joins the World Trade
Organisation, possibly this year. One of these was already
forced to scrap its planned offering last year in the face
of weak demand.

Mr Sheng said that CNPC, which reported net profits of Rmb
17bn ($2bn), was a relatively efficient company with a low
ratio of debt to assets. But analysts said in comparison
with international oil leaders, PetroChina appeared
overstaffed, indebted and inefficient. (China Daily  27-
Jan-2000)

WAH NAM GROUP: Reports vulnerable position to HKSE         
--------------------------------------------------  
The directors ("Directors") of Wah Nam Group Limited
("Company"), through Chan Kwok Choi Matthew, Executive
Director, wish to announce that on 22nd January, 2000 the
Company received 8 demands under Section 178(1)(a) of the
Companies Ordinance ("Demands") as follows:

1. HCK China Investment Limited ("HCK") gave 4 demands
against the Company, each for the amount of A$1,000,000.00
(equivalent to HK$5,105,000.00) and interest of A$60,000.00
(equivalent to HK$306,300.00) and threatened that if
payment of the amounts under demand is not made within 21
days, HCK will proceed for the winding up of the Company by
the court ("HCK Demands"); and

2. Investment Austasia Limited ("IAL") gave 4 demands
against the Company, each for the amount of A$837,500.00
(equivalent to HK$4,275,437.50) and interest of A$50,250.00
(equivalent to HK$256,526.25) and threatened that if
payment of the amounts under demand is not made within 21
days, IAL will proceed for the winding up of the Company by
the court ("IAL Demands").

The HCK Demands related to 4 promissory notes, each for
A$1,000,000.00 (equivalent to HK$5,105,000.00), which are
carrying interest at 8% per annum and are due for payment
on 15th December, 1999 ("HCK Promissory Notes"). The IAL
Demands related to 4 promissory notes, each for $837,500.00
(equivalent to HK$4,275,437.50), which are carrying
interest at 8% per annum and are due for payment on 15th
December, 1999 ("IAL Promissory Notes").

As disclosed in the announcement dated 21st April, 1998, by
an agreement dated 16th April, 1998 ("Acquisition
Agreement"), the Company has acquired the respective entire
issued share capital of Wah Nam Infrastructure Investment
Limited ("WNII") and IAL HK Limited ("IAL HK") from IAL
("Acquisition"), and at the same time the Company has
disposed of the 50% interest in IAL to HCK ("Disposal"),
which were completed on 15th September, 1998.

The HCK Promissory Notes and the IAL Promissory Notes
("Promissory Notes") for the total principal amount of
A$7,350,000.00 (equivalent to HK$37,521,750.00) were issued
by the Company on 15th September, 1998 on completion of the
Acquisition, for the purpose of satisfying a part of the
purchase consideration payable by the Company for the
Acquisition. The HCK Promissory Notes were issued at the
request of IAL.

There have been a series of dispute relating to the
completion of the Acquisition and the Disposal. As
disclosed in the circular to shareholders dated 7th
October, 1999 and 28th December, 1999 respectively, (a) on
4th February, 1999, the Company instituted an action in
Australia against IAL, Khoo Ee Lam (a director of HCK) and
another party, to claim against IAL a declaration that the
Company has performed the Acquisition Agreement, against
Khoo Ee Lam a declaration that Khoo Ee Lam engaged in
misleading and deceptive conduct in relation to a cheque
for A$1,080,453 (equivalent to HK$5,515,712) issued by Khoo
Ee Lam in connection with transactions ancillary to the
Acquisition and the Disposal; and (b) in March, 1999 the
Company applied against HCK and another party for relating
interlocutory relief ("Australian Action"). The Company is
still pursuing the Australian Action.

As disclosed in the announcement dated 8th April, 1999, on
31st March, 1999, (a) HCK instituted an action against the
Company to claim A$256,438.00 (equivalent to
HK$1,309,115.99) being allegedly shortfall in shareholders'
fund in IAL warranted by the Company upon the Disposal; and
(b) IAL instituted an action against the Company to claim
(i) A$1,080,453.00 (equivalent to HK$5,515,712) being
allegedly short payment for the Acquisition; (ii) A$133,403
(approximately HK$681,022) being allegedly amount due from
IAL HK to IAL and (iii) A$91,041 (approximately HK$464,764)
being allegedly stamp duty and expenses for the
Acquisition. After the Company filed its defence, no
further action has been taken by HCK or IAL.

As disclosed in circulars to shareholders of the Company
dated 7th October, 1999 and 28th December, 1999
respectively on 30th September, 1999, HCK issued High Court
Action No. 15615 of 1999 ("HCA No. 15615") against the
Company for A$160,000.00 (equivalent to HK$816,800.00)
being interest under the HCK Promissory Notes, and IAL
issued High Court Action No. 15616 of 1999 ("HCA No.
15616") against the Company for A$134,000.00 (equivalent to
HK$684,070.00) being interest under the IAL Promissory
Notes ("Hong Kong Actions").

As there are defaults on the part of IAL and/or HCK and/or
Khoo Ee Lam in relation to the cheque for A$1,080,453
(equivalent to HK$5,515,712) (the subject matter of the
Australian Action) and other matters, the Company is
disputing its obligations under the Promissory Notes and is
contesting the Hong Kong Actions. The Company is seeking
further legal advice on the Demands.

Further announcement will be made on any material
development of these proceedings.

As disclosed in the announcement dated 14th January, 2000,
the Company is having substantial cash flow difficulties.
On 17th December, 1999, the court ordered that the Company
do pay the sum of HK$6 million with accrued interest
thereon to Excel Nobel Development Limited (a company in
which Samson Chen, a former executive director of the
Company, has interested) within 14 days ("HK$6 Million
Order") and that the Company do pay the sum of HK$24
million with accrued interest thereon into the court within
21 days ("HK$24 Million Order"). Up to date, the HK$6
Million Order and the HK$24 Million Order, save as to
HK$1.25 million already paid pursuant to HK$24 Million
Order, are still outstanding.

The Company requires additional financial arrangements to
satisfy the outstanding balance of the HK$24 Million Order
and the HK$6 Million Order as well as the Demands, for the
total amount of principal of A$7,350,000.00 (equivalent to
HK$37,521,750.00) and the total amount of interest of
A$441,000.00 (equivalent to HK$2,251,305.00), (but only to
such extent as the Company may be held liable, if at all),
failing which the Company will not be able to maintain its
normal operation.

As disclosed in the announcement dated 14th January, 2000,
the Company intended to dispose of its 60% interests in
Hangzhou Huanan Engineering Development Co. Ltd. ("HHED")
which owns the proprietary rights to Highway G320 (Hangzhou
Shanhusha to Jinjialing Section), which is a toll road
located in Hangzhou City, Zhejiang Province, the PRC, for a
projected net cash proceed of HK$85,000,000 (the "Intended
HHED Disposal"), to the extent allowed by the injunction
granted by the court against the Company on 17th December,
1999. The Intended HHED Disposal will provide adequate
finance to meet the present needs of the Company.  (The
exchange rate for converting Australian Dollars into Hong
Kong Dollars adopted in this announcement is A$1 =
HK$5.105)

Trading of the shares of the Company ("Shares") on The
Stock Exchange of Hong Kong Limited ("Stock Exchange") has
been suspended at the request of the Company as from 10:00
a.m. 24th January, 2000, trading of the Shares will be
resumed as from 10:00 a.m. 27th January, 2000.  (Stock
Exchange of Hongkong  27-Jan-2000)


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

VAN DER HORST: Applies for judicial management
----------------------------------------------
Van der Horst (VDH) has applied to go under judicial
management to facilitate discussions with a potential
investor.

The engineering and infrastructure firm said in a statement
yesterday that the move to appoint KPMG's Michael Ng, Peter
Chay and Bobby Chin as JMs was made in consultation with
its debt restructuring committee (RC) which is made up of
its bankers.  The group is in default of about $119 million
owed to more than 20 financial institutions.

VDH said the company and the RC have been talking to
various potential investors, including one with whom
negotiations are at a "more advanced stage".  Any
investment however, is expected to necessitate a divestment
of some of the company's assets, it said, adding that the
lenders have indicated that such a divestment is best
managed by an independent JM. As such, the board believes
the appointment of the JMs will facilitate and expedite its
debt restructuring.

It said the potential investor has been informed of the
latest development. For the year ended last Sept 30, VDH
managed to slash losses to $84 million from $191 million a
year earlier. But the figure was still larger than what
analysts had expected.  The company made a provision of $54
million for infrastructure projects in Indonesia. Turnover
dived 38 per cent to $25.02 million due largely to the
disposal of its screen manufacturing division.

The company made an extraordinary gain of $6.48 million
against a loss of $30.79 million previously following the
sale of convertible loan stocks in Philippine-based
electricity supplier East Asia Power Resources Corporation.
Van der Horst was suspended yesterday on the stock market
but closed 2.5 cents down at 44.5 cents on Monday.
(Singapore Business Times  26-Jan-2000)


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

ARABIAN OIL CO.: To book special 2.58B Yen loss for FY99
--------------------------------------------------------
Japan's Arabian Oil Co. (1603) said Thursday it now expects
a parent net loss of Y2.4 billion for the year through
December 1999, compared with its previous forecast of Y1
billion in net profit.

The Tokyo-based oil producer ascribed the gloomy outlook to
its unsuccessful attempt to persuade Saudi Arabia and
Kuwait to revise their taxation systems on profits from the
so-called Neutral Zone where Arabian Oil drills crude oil.
The talks failed to reach an agreement by the end of 1999.

"Our profit before deducting a special loss is expected to
be around Y150 million," the company said in a statement.

For 1999 the company sees a special loss of Y2.58 billion,
as an affiliate is likely to withdraw from a uranium
development project in Niger, west Africa due to the
sluggish uranium market, Arabian Oil said.  However, the
company said its parent pretax profit for 1999 will rise to
Y51 billion, up from its previous prediction of Y47
billion, while sales are expected to increase to Y180
billion, higher than a prior forecast of Y170 billion.

Arabian Oil said it will omit payment of an annual
dividend. It paid a dividend of Y25 a share for 1998.
The company plans to release its 1999 earnings results in
February, but no specific date has been set yet.
Separately, talks between Tokyo and Riyadh trying to renew
Arabian Oil' drilling rights in the Saudi side of the
Neutral Zone, which expire Feb. 27. have been deadlocked.
The Saudis insisted that Japan fully invest in building a
US$2 billion railway and rejected Tokyo's offer of
interest-free loans to cover 70% of the project's cost.
(Nikkei  27-Jan-2000)

CHISSO CORP.: To cut jobs,shrink PVC business in rehab
------------------------------------------------------
Chisso Corp., still reeling from reparations to the victims
of Minamata disease, unveiled on Tuesday a medium-term
restructuring plan under which it will shed some 250 jobs
on a groupwide basis and shrink its polyvinyl chloride
(PVC) resins business.

Chisso aims to reduce its group payroll to 1,900 jobs by
the end of fiscal 2003, down from 2,151 as of the end of
fiscal 1998. The job cuts, combined with lower distribution
costs, are expected to produce an annual savings of some 7
billion yen.

The firm hopes to achieve an annual pretax profit of at
least 4 billion yen by shrinking its PVC business and other
unprofitable operations, while reinforcing its performance
products group, which is anchored by raw materials for
liquid crystal components. (Nikkei  26-Jan-2000)

HITACHI CABLE: To record 2.7B Yen loss on Thai business
-------------------------------------------------------
Hitachi Cable Ltd. (5812) announced Tuesday that it will
record an extraordinary loss of about 2.7 billion yen
related to operations in Thailand this fiscal year.

Last November, Hitachi Cable formed a new venture in
Thailand jointly with Finland's rolled copper firm to make
copper parts for use in air-conditioning units. As a
result, it has liquidated its existing venture, Bangkok
Metal Industry Co.

Hitachi Cable will record a 2.1 billion yen loss on its
equity investment and loans to Bangkok Metal, and around a
600 million yen loss on unrecoverable receivables. Because
it will cover the loss with the sale of securities
holdings, the company says there will be no impact on
earnings. (Nikkei  26-Jan-2000)

KEIO ELECTRIC RAILWAY CO.: Expecting annual loss
KEISEI ELECTRIC RAILWAY CO.: Expecting annual loss
SAGAMI RAILWAY CO.: Expecting annual loss
TOBU RAILWAY CO.: Expecting annual loss
--------------------------------------------------
Private railway firms in the Tokyo area are continuing to
experience difficulties with their bus operations. Amid
declining ridership, five of seven companies expect to
record operating losses from their bus operations in the
fiscal year ending March 31.

Three of the companies -- Keio Electric Railway Co. (9008),
Keisei Electric Railway Co. (9009) and Tobu Railway Co.
(9001) -- foresee losses widening from last fiscal year,
while Sagami Railway Co. (9003) will be unable to avoid a
loss equal to that of last year.

Tobu Railway expects to show an operating loss of about 2.2
billion yen on its bus operations. Operating revenue fell
10% from a year earlier, and the company was unable to
absorb fixed costs.  Keisei Electric Railway sees its
operating loss on bus operations growing from last fiscal
year's 1.4 billion yen to 1.6 billion yen this fiscal year.

Fuji Kyuko Co. (9010), which spun off most of its charter
bus business, expects its bus operations to return to the
black for the first time in 12 years. Keihin Electric
Express Railway Co. (9006) also expects to show a profit.
(Nikkei  27-Jan-2000)

NISSAN MOTORS: Domestic sales fall, rehab proceeding
----------------------------------------------------
Nissan Motor has revealed it suffered a dramatic 14.4 per
cent dive in domestic sales last year, a far worse
performance than its rivals Toyota Motor and Honda Motor.

Japanese customers purchased 773,602 Nissan cars last year,
the country's second-biggest car-maker said.  That compared
to a 2.7 per cent fall to 1.66 million Toyota vehicles and
a 2.3 per cent climb to 705,841 Honda cars sold in the same
period.  Nissan's global production fell 7.1 per cent to
2.37 million vehicles in the year.

Japan's top car-maker Toyota managed to boost global
production by 2.1 per cent to 4.73 million vehicles in the
calendar year.  Honda - the third-biggest, manufacturer
which is fast catching up to Nissan - said it stepped up
global output 3.7 per cent in the year to 2.42 million
vehicles.

Nissan spokesman Tomoyuki Shioya said the company aimed to
turn around by restoring growth, under a restructuring plan
led by chief operating officer Carlos Ghosn, who was
imported from Renault to steer through the changes.

Renault took a 36.8 per cent stake in financially troubled
Nissan in May, becoming the top shareholder.  Nissan plans
to sell shares in 1,394 companies and use the proceeds to
repay debts under the revival plan announced in October,
which also involves shedding 21,000 jobs and shutting five
plants.

Nissan's domestic production slumped 10.7 per cent to 1.39
million cars while Toyota and Honda lost less than 2 per
cent.  Last month alone Nissan exports slumped 7.3 per
cent, domestic sales fell 11.3 per cent to 49,292, domestic
output dropped 16 per cent and worldwide production fell 5
per cent. (South China Morning Post  27-Jan-2000)

SEIYO CORP.: Parent reaches agreement on debt disposal
------------------------------------------------------
Saison Group has reached a basic agreement with Dai-Ichi
Kangyo Bank (8311) on ways to dispose of debt at its real
estate affiliate Seiyo Corp., company sources said
Thursday.

DKB is the deficit-ridden realtor's main creditor. Saison
will repay a total 140 billion yen on behalf of Seiyo over
three to five years, starting from fiscal 1999.  Seiyo's
liabilities exceeded its assets by 300 billion at the end
of March 1999, mostly as a result of the failure of its
resort development business following the burst of the
"bubble economy" of the late 1980s. The Seiyo group has
debts totaling 450-500 billion yen.

Saison will ask almost 50 other creditors to waive more
than 300 billion yen in loans to Seiyo by the end of March,
when they end their favorable conditions on interest
payments.  Most of the main creditors are expected to
accept the request, after which Saison plans to liquidate
Seiyo to eliminate the largest block to its restructuring
efforts.  (Nikkei  28-Jan-2000)

SHINKO CREDIT UNION: Fails on defaulted Princeton bonds
-------------------------------------------------------
The Tokyo Metropolitan Government publicly acknowledged
Wednesday the failure of Shinko Credit Union of Hachioji, a
big buyer of soured Princeton bonds.

Under the financial rehabilitation law, the municipal
government will send administrators to manage the credit
union until a financial institution can be found to take
over. All deposits will be protected.  Shinko liabilities
are estimated to exceed assets by 5.3 billion yen at the
end of September 1999, due mainly to money lost on
irrecoverable Princeton bonds purchased from the Tokyo
branch of Cresvale International Ltd.

The credit union had been operating in Tokyo's Tama area
but poor local business conditions caused its financial
position to deteriorate. The struggling lender bought 5
billion yen worth of Princeton bonds to offset unrealized
losses on its securities holdings, but Cresvale's
defaulting on the bonds delivered a fatal blow.

At the end of December, the outstanding deposit balance at
the failed credit union totaled 58.2 billion yen, with
outstanding loans amounting to 39.4 billion yen. (Nikkei  
26-Jan-2000)

SHOEI CO.: To fight takeover bid, restructure
---------------------------------------------
Shoei Co. (3003) decided Tuesday at its board of directors
meeting to oppose a takeover bid from corporate acquisition
company MAC Inc., company officials said.  The company also
unveiled measures to restructure its money-losing
electronic parts business, hoping to keep shareholders from
selling their shares to MAC.

"We have heard that major shareholders such as Canon Inc.
(7751) and Fuji Bank (8317), have no plans to accept the
takeover bid," Shoei President Tanehiko Kamiura said. "We
will sell our capacitor facilities, and instead sell
products manufactured on an OEM basis."  

MAC claims Shoei has yet to reform its management. Kamiura
countered that his company has been restructuring since
1992, and pulled the plug on its silk manufacturing
operation in 1995. (Nikkei  26-Jan-2000)


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

DAEWOO GROUP: Banks offer credit to Daewoo-hit trust firms
----------------------------------------------------------
Hanvit Bank, Cho Hung Bank, Korea Exchange Bank, and five
other commercial banks will offer up to US$5 billion in
credit to trust companies threatened by the Daewoo debt
crisis.

The credit lines for 23 investment trust companies that may
face as much as 30 trillion won (about HK$207 billion) in
cash calls on February 8 when individual investors can
retrieve 95 per cent of their Daewoo bonds funds. This
would allow the companies to sell other bond holdings to
banks should they need extra cash, said a Financial
Supervisory Service official.

Daewoo, once South Korea's second-largest industrial group,
said six months ago that it could not repay its debt, now
at least $78 billion. Its problems have spread through many
Korean lenders and smaller firms.

"These contingency measures will be potentially burdensome
for banks, if they really have to lend the money," said
Daiwa Securities' analyst Chang H. Lee.  "On the other
hand, the steps are positive for the financial market as a
whole, as they will help stabilise the market."

The Korean Government has already earmarked 36.2 trillion
won to shield investment trust firms exposed to Daewoo.
Trust firms are among the principal buyers of Korean
corporate bonds.  Banks that will open credit lines include
H&CB, Kookmin Bank, Shinhan Bank, Hana Bank and Pusan Bank,
according to bank officials.

The trust firms to benefit from the credit lines include
Korea Investment Trust , Daehan Investment Trust , and
Samsung Investment Trust Securities , the nation's top
three trust firms.  Under the credit-line agreements, banks
will purchase state, corporate and bank bonds held by
investment trust companies. In some cases, trust firms must
repurchase the bonds at a later date.  The central bank,
the Bank of Korea, will step in if the credit lines cannot
cover redemption calls by customers wanting to cash out of
their Daewoo-exposed funds. (South China Morning Post  27-
Jan-2000)

DAEWOO MOTOR: Creditors set to implement workout program
--------------------------------------------------------
Korea Development Bank (KDB), the main creditor of Daewoo
Motor, will implement workout plans on the ailing
automaker, including debt-equity swaps and new fund
injection, aside from its bid to sell the company.

"Daewoo Motor and creditors recently signed a workout
agreement and plan to exercise the workout plans included
in the agreement regardless of the process to sell the
company," said a KDB official yesterday.

Included in the workout are the conversion of debts worth
1.5 trillion won ($1.3 billion) into equity and 7.3
trillion won of debts to convertible bonds (CBs), new fund
injection for operations of 900 billion won and trade
financing of $2.35 billion, and reduction of interest
rates. The plan also includes Daewoo's own strategy to
revitalize itself.

"The workout plans should be advanced regardless of the
drive to sell the company as the sale is part of management
normalization and we are not sure at present if the sale,
scheduled to be concluded by the end of the first half of
this year, will succeed or not," said the KDB official.

KDB has recently supplied funds of 200 billion won to the
company according to workout plans, and will ask other
creditors to supply allotted fund assistance and adjust
interest rates.  The time for the debt-to-equity swap has
not been decided yet, the bank added. (The Korea Herald  
27-Jan-2000)

KOOKMIN LIFE: SK intends to take over  
-------------------------------------
The SK Group has confirmed that it wants to take over the
insolvent Kookmin Life by participating in a public sale,
said the Financial Supervisory Commission (FSC) yesterday.

The conglomerate has already notified the FSC of its
intention through SK Life President Kim Han-ki.  The
financial watchdog will screen letters of intent submitted
by potential investors and select priority candidates among
them for conclusion of a memorandum of understanding.

The SK Group is eligible to take over the life insurer
because its debt ratio is below 200 percent and has the
means to come up with funds from its own resources.  A
number of domestic banks are considering bidding for
Kookmin Life, including Kookmin and Hana Banks, to prepare
for the bancassurance era. (The Korea Herald  27-Jan-2000)

NARA BANKING CORP.: FSS taking steps to liquidate  
-------------------------------------------------
The Financial Supervisory Service (FSS) began an in-depth
investigation into the financial status of Nara Banking
Corp., which has had its operations suspended since January
21.  If the FSS finds that Nara Banking has little hope of
survival on its own feet, the agency will officially
designate the merchant banking firm as a non-viable
financial organization.

Under such a designation, the government usually proceeds
with a number of steps, including the sell-off or
liquidation of the company. FSS ordered a three-month
suspension of Nara's operation January 21 after finding the
firm on the verge of insolvency. (Digital Chosun  26-Jan-
2000)


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

TIME ENGINEERING BHD: Revival plans focus after stay order
----------------------------------------------------------
After securing a three-month extension of the protection
order for Time Engineering Bhd from the High Court, Renong
Bhd boss Tan Sri Halim Saad sat down with Star Business
yesterday and outlined his plans on how he intends to
revive the Time group and make it into a leading telco.

The exercise will involve several steps, but as can be seen
in the chart, at the end of the day Time's wholly-owned
subsidiary, Time dotCom Bhd, will be a listed company with
a paid-up capital of 2.442 million shares of RM1 each.
Time will be retaining 53.5% of the listed company; a
strategic partner will hold 24.6%, creditors 1%; Sapura
Group 2.5% and the public 18.4%.

"Time dotCom has a valuable telecoms/Internet asset and if
structured properly it will have the potential to be a
premier multimedia player in Malaysia, being able to create
significant value to its shareholders," said Halim, who
recently took over as managing director of Time dotCom.
Renong owns 46.8% of Time.

"Three months should be enough to execute the plan if we
move fast enough and if all parties co-operate. We have to
make it work, talking is not good enough, we take the task
seriously."

What needs to be restructured is Time's total debts of
RM3.751bil and a bond issue of US$250mil (equivalent to
RM950mil).  According to the plan, all Time creditors will
convert their debts into 1.25 billion shares of Time dotCom
at RM3 apiece.  These 1.25 billion shares will be placed
under a "put" option to Time at RM3 per share, which Time
has two years to repay the creditors. In this way, every
creditor will be paid in full.

Creditors will also be rewarded with 25% of the gains
obtained by Time on the future sale of the Time dotCom
shares within the two years. Payment will be made after two
years in the form of Time dotCom shares valued at RM3 per
share.

Time will raise cash to meet the put option by floating
Time dotCom on the KLSE to raise RM1.35bil through an
initial public offering of 150 million shares at RM3 each,
and an offer for sale of 300 million shares, also at RM3.
A strategic investor, which Halim declined to identify,
will take up a 24.6% stake at RM3.50 per share to raise
RM2.1bil.

Out of the RM3.45bil to be raised, RM450mil will be for
working capital, while RM3bil will be used to repay debts
of the company. The remaining RM751mil of debts will be
taken care of either through a bank loan, further sale of
Time dotCom shares or a capital raising exercise by Time.

As for the bondholders, the US dollar-denominated debt will
be converted to a ringgit debt of RM950mil.  Time will
divest 49.89 million Renong warrants for cash to reduce
debts by RM50mil and the remaining RM900mil will be
converted into five-year Time redeemable secured bonds.
The bonds will carry a 2% coupon rate with a yield-to-
maturity of 10%. A maximum of 124 million detachable
warrants will also be issued with the bonds and 30 million
warrants will be given to bondholders as sweetener.

The remaining 94 million warrants will be offered to the
shareholders of Time on the basis of one warrant for every
eight shares at an offer price of 30 sen per warrant.

"I am happy to learn that the market is beginning to see
the real valuation of Time as we see it," Halim said.
He added: "We are here to create value for shareholders. We
have taken a big beating from the economic crisis and if
the assets improve in value, naturally it will be reflected
in Time share price."

Asked whether the creditors had accepted the listing plan,
Halim said: "If they have an opportunity to recover all
their monies there should be no reason to object."

Asked why he was opposed to selling Time to Singapore
Technologies Telemedia Pte Ltd (which was another option
proposed by CDRC) Halim said: "What choice do I have. The
listing plan by CDRC is a better one as there is no capital
reduction.  The alternative to sell Time assets at firesale
prices would not be in anybody's interest."

Throughout the two-hour interview, Halim stressed that his
aim was to create value for the company. Some international
merchant bankers in consultation with Time have valued it
at RM6.8bil to RM7bil.  Time had in early December launched
its Internet service and once the company goes on a
marketing blitz it expects a respectable number.

Some merchant bankers are valuing Time's Internet business
at RM500mil. But because of the potential of the Internet,
the valuations can skyrocket.   At the end of the
interview, Halim made a promise to Time investors: "Give us
some time to put our plans through. The company has a great
future and we are determined to push the company forward."

Time's top five creditors are: Employees Provident Fund
Board (RM533mil), Maybank Bhd (RM243mil) RHB Bank Bhd/RHB
Sakura Merchant Bankers Bhd (RM236mil), Perwira Affin Bank
Bhd (RM156mil) and Commerce International Merchant Bankers
Bhd/Bank of Commerce (M) Bhd (RM151mil).

"I am happy to learn that the market is beginning to see
the real valuation of Time as we see it," Halim said.
He added: "We are here to create value for shareholders. We
have taken a big beating from the economic crisis and if
the assets improve in value, naturally it will be reflected
in Time share price."

Asked whether the creditors had accepted the listing plan,
Halim said: "If they have an opportunity to recover all
their monies there should be no reason to object."

Asked why he was opposed to selling Time to Singapore
Technologies Telemedia Pte Ltd (which was another option
proposed by CDRC) Halim said: "What choice do I have. The
listing plan by CDRC is a better one as there is no capital
reduction.  The alternative to sell Time assets at firesale
prices would not be in anybody's interest."

Throughout the two-hour interview, Halim stressed that his
aim was to create value for the company. Some international
merchant bankers in consultation with Time have valued it
at RM6.8bil to RM7bil.  Time had in early December launched
its Internet service and once the company goes on a
marketing blitz it expects a respectable number.

Some merchant bankers are valuing Time's Internet business
at RM500mil. But because of the potential of the Internet,
the valuations can skyrocket.  At the end of the interview,
Halim made a promise to Time investors: "Give us some time
to put our plans through. The company has a great future
and we are determined to push the company forward."

Time's top five creditors are: Employees Provident Fund
Board (RM533mil), Maybank Bhd (RM243mil) RHB Bank Bhd/RHB
Sakura Merchant Bankers Bhd (RM236mil), Perwira Affin Bank
Bhd (RM156mil) and Commerce International Merchant Bankers
Bhd/Bank of Commerce (M) Bhd (RM151mil). (The Star  28-Jan-
2000)


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

ATLAS CONSOLIDATED MINING: Chinese company to help rehab
--------------------------------------------------------
Australian and British-led Minoro Mining and Exploration
Corp. has tapped state-owned China Nonferrous Metal
Industry to invest in the rehabilitation of the Atlas
Consolidated Mining and Development Corp., one of the
oldest mining firms in the country.

Atlas -- previously owned by the Soriano family -- needs
five billion Philippine pesos (US$123.5 million at
PhP40.472:US$1) to rehabilitate its Toledo Copper Mine in
Cebu which has not been operational for several years now.
The company also needs funds to pay for existing
liabilities.

Minoro, which recently acquired a 58% controlling stake in
Atlas, is doing the scouting for funds for the mining firm.
BusinessWorld sources said the Chinese-owned mining firm is
amenable to Minoro's offer to take 100% of the ore produce
of Toledo in exchange for the much-needed financing.

The deal, which is still being finalized, will also see the
Chinese firm providing Atlas with new equipment, a new
coal-fired power station, and underground mining
facilities.  President Joseph Estrada is reportedly set to
go to China on an official trip in April. At the same time,
he will witness the contract signing between the two mining
firms.

The source said China's demand for metals, copper in
particular, is currently increasing. The Chinese government
expects internal consumption growth of 7.7%, leading to an
import increase to 200,000 tons from 150,000 tons last
year.  At the same time, sources said, Atlas is seriously
considering a dual listing in the Australian Stock Exchange
once its debt retirement program is completed. No definite
timetable has been set, however.

Aside from the mine site, studies are also under way for
the development of other non-core assets such as the
Malubog Water Reservoir which excess water capacity can be
used to supply the water demand of Metro Cebu. The source
also said real estate assets surrounding the mine site may
likewise be used for commercial and residential
development.

To recall, Atlas was to be the fifth-largest mining firm in
the world until its Cebu mining site closed down after it
was flooded by two super typhoons in 1994.  Earlier, Minoro
spent PhP100 million ($2.5 million) for a bankable
feasibility study on the reopening of the Toledo copper
mine.

Based on the study, the company would need PhP5.5 billion
($135.8 million) to retire Atlas' debt and another PhP5.5
billion to reopen the Toledo mine over a 12-month period.
The study also showed the Toledo copper mine is expected to
generate some $100 million each year in export earnings
once it is in full operations.  The Toledo mine still
ensures its remaining ore reserves can last for another 40
years. (Business World  28-Jan-2000)

BW RESOURCES CORP.: Senate committee subpoenas records
------------------------------------------------------
The Senate has ordered Securities and Exchange Commission
(SEC) chairman Perfecto R. Yasay, Jr. to produce records of
the commission's en banc meetings on BW Resources
Corporation.

In a letter, Sen. Raul S. Roco also directed Mr. Yasay to
divulge the reports of two SEC departments -- the
Prosecution and Enforcement Department and the Brokers and
Exchanges Department -- on the gaming firm's trading deals
between Octoer 10, 1999 to January 2000.  In a separate
subpoena, the banks committee chairman also ordered
Philippine Stock Exchange (PSE) president Jose Luis U.
Yulo, Jr. to submit printouts of broker-to-broker
transactions involving BW Resources shares.

At the same time, the PSE president was directed to
identify benefitting owners of BW Resources stocks in the
matched transactions from June to October 1999.  Mr. Roco
also sought copies of letter exchanges between Messrs.
Yasay and Yulo in regard to the monitoring and
investigation of unusual price movements of BW Resources
shares.

In a press briefing yesterday, the senator said the
committee is collecting all available documents in a bid to
determine if there was indeed insider trading and price
fixing.  The committee will hold another hearing this
afternoon whereing Mr. Yasay will be asked to clarify his
earlier testimony that President Estrada had pressured him
through four phone calls late last year to clear of any
wrongdoing BW Resources majority owner Dante Tan, whom the
president has admitted as being a long-time friend.
Another hearing is scheduled next week, after which the
committee should be ready with its own verdict on the case.

"I'm hoping that we can end the hearing as soon as
possible," Mr. Roco said.

The senator also lashed at his colleague, Sen. Francisco S.
Tatad, who earlier questioned the validity of the "one-man
committee hearing" conducted by Mr. Roco at the SEC
building last Jan. 19. It was in that hearing that Mr.
Yasay claimed to have been pressured by Mr. Estrada. Mr.
Yasay later retracted, saying that was his interpretation
of Mr. Estrada's statement to him then that Mr. Tan is
innocent and is even a victim in this controversy.

Mr. Tatad, an administration solon and a member of the
Senate committee, earlier asked the Senate to expunge from
its records the Jan. 19 hearing, which he claimed did not
have a quorum.  The senator, who was absent from the
hearing, claims to have been indisposed at the time. "This
lack of quorum is a fatal infirmity that affects the
validity of the entire Jan. 19 proceedings," Mr. Tatad told
Mr. Roco in a letter dated Jan. 26.

Mr. Roco criticized Mr. Tatad's excuse of being
"indisposed" at the time, pointing out that the
administration senator had never attended one hearing
on BW Resources. "Why was he absent in all the hearings?
He's indisposed every time there is a hearing?" he asked.

Mr. Roco also said holding a hearing without a quorum is
"sanctioned by practice," adding that it is also supported
by Senate rules.  "I will not educate Sen. Tatad as to
where the rule is. That's for him to find out," Mr. Roco
said. "Because of the nature of the Senate, that has
become the parliamentary practice. And so, I consider the
objection not too relevant."

Mr. Roco said the Senate should be more interested in the
truth "to lay to rest the suspicion that there may be price
manipulation."

He also said whether the Jan. 19 meeting was a hearing or a
technical working group is immaterial. "If the SEC chairman
announced that he was being told to clear somebody, that is
a matter of public concern," Mr. Roco stressed.

Mr. Roco accused Mr. Tatad of distracting from the real
issue, which is whether or not BW Resources officials and
brokers violated the Securities Act.  "So I hope we are not
distracted from the critical element of ascertaining
what is true and whether there is price manipulation," he
said. "Ignore the distractions." (Business World  28-Jan-
2000)

FIRST WOMEN'S CREDIT CORP.: Contempt order sought from SEC
----------------------------------------------------------
First Women's Credit Corp., as represented in a derivative
suit by businessman Shig Katayama, has asked the Securities
and Exchange Commission to hold the group of Ramon 'RJ'
Jacinto in contempt for refusing to submit FWCC's financial
documents despite an SEC order.

FWCC, in a motion filed with the SEC, said that the June 2,
1998 order of the SEC has been violated by the group of
Jacinto.

"This failure and refusal to submit the required monthly
financial statements of FWCC to the Honorable Commission
without justifiable cause warrants declaration of
respondents in contempt," said FWCC.

Jacinto's group, according to the petitioner, claimed that
it did not have direct control of the financial statements
of FWCC saying that it was the treasurer who was
responsible for keeping the records of the company's
financial standing.  However, Katayama claimed this was
belied by statements made under oath by the Jacinto group
which claimed that Katayama wanted to "wrest the management
and control of FWCC from Jacinto and his group, which has
been with the latter since its incorporation."

Meanwhile, the interim management committee appointed by
the SEC for FWCC is still being barred by the Jacinto group
from taking over the operations of the lending company.
In a letter to the SEC, FWCC interim management committee
chair Fortunato B. Cruz said the Jacinto group had "no
intention of honoring at all" the SEC order dated Nov. 17,
1999 which directed the management committee to take over
the operations of FWCC. The temporary restraining order
that stopped the take over, issued on Dec. 28, 1999, lapsed
last Jan. 17.

Cruz, in his letter, claimed that the Jacinto group had
padlocked FWCC's offices and branches so that members of
the appointed management committee could not take hold of
the assets and records of the company.  Cruz further
alleged that employees were also placed on forced leave
with pay and some managers who were not cooperative with
Jacinto were transferred or assigned to other places.

He claimed that the group of Jacinto has prepared a draft
letter to be signed by the branch managers seeking the
dissolution of the management committee.

"Some branch managers who opposed the move found themselves
suddenly reassigned," the interim management committee
claimed.

Jacinto earlier opposed the appointment of the receiver,
saying there was no urgency to implement the order
appointing the management committee as FWCC's operations
were already limited to collecting its receivables after it
stopped its lending operations on Oct. 27, 1997.

It added that in the two years since minority shareholder
Shig Katayama filed the case against Jacinto, the former
was not able to present evidence that Jacinto continued to
draw advances or loans from FWCC.

Jacinto also argued that the interest of the stockholders
and creditors of FWCC were protected even without the
interim management committee as the regional trial court
has issued an order conserving the assets of FWCC.
(Philippine Daily Inquirer  28-Jan-2000)

HOOYA TECHNOLOGY: Taiwanese arrested for telephone fraud
--------------------------------------------------------
A Taiwanese believed to have defrauded the Philippine Long
Distance Telephone (PLDT) company of P10 million in long-
distance charges (and also the government of corresponding
taxes), was arrested last Tuesday by the National Bureau of
Investigation (NBI).

David Wu, 32, was nabbed in his Binondo, Manila office by
members of the NBI Criminal Intelligence Division (CID)
after his company Hooya Technology Inc. was traced as the
recipient of long-distance calls coming from Taiwan. He is
said to have five Filipino and Taiwanese partners in the
company.

Wu, said NBI-CID chief lawyer Rusty Vigilla, markets a
phone card in Taiwan that gives callers access to a
supposedly exclusive international telephone line provided
by PLDT to the Taiwanese's local company. Hooya had 30 of
these lines that have fixed rates.

The lines are provided to companies with a large volume of
overseas telephone traffic on the condition that they be
for the sole use of their company.  But instead, Wu is said
to be selling access to the lines for long-distance calls
between Taiwan and the Philippines.

Wu's company is said to have been offering its services for
the last four months, raking in revenues of P2.5 million
per month, said Vigilia.  Seized in the office of Wu, who
was then alone, were electronic devices used for rerouting
the calls.

"As a result, he (Wu) is able to earn money from these
lines without having to pay additional fees to PLDT," said
Vigilia.

NBI director Federico Opinion Jr. identified Wu's alleged
accomplices as Hsiang Yung Yang; Alsin, Albert, Alfred, and
Jesus, all surnamed Tanglao; and one Veronica Salalila.
This is the second time the NBI busted a company engaged in
the same illegal activity. The first resulted in the arrest
of two Japanese and two Filipinos who allegedly also
defrauded PLDT of several millions of pesos. (The
Philippine Star  28-Jan-2000)

PHILIPPINE NAT.BANK: Bad debt level worsens
-------------------------------------------
Philippine National Bank's non-performing loan ratio
deteriorated further in the fourth quarter to a high of 29
percent from 26 percent in the third quarter, the bank's
published statement of condition as of Dec. 21, 1999
showed.

In the statement, PNB said its total non-performing loans
amounted to P34.9 billion while its loans, discounts and
advances amounted to P98.33 billion.  The bank's statement
also showed that its total amount of real and other
property owned or acquired grew 33 percent to P20.59
billion as of Dec. 21 from P15.125 billion the quarter
before.

The NPA and NPL levels of PNB are the highest among its
peer banks.  As of December, the bank's total amount of
classified loans and other risk assets reached P76.7
billion.  The bank's statement also showed that a total of
P43.73 billion in taxpayers' money was deposited in PNB by
government.

The group of taipan Lucio Tan, who is also chair of the
debt-ridden and ailing Philippine Airlines Inc., recently
took over the PNB board.  Last December, Tan and his three
other nominees were elected to the 11-member PNB board.

The government, despite still having a 30-percent stake and
six board members in the bank, gave up management control
of the bank over a week ago by allowing Feliciano Miranda,
one of Tan's nominees, to be elected president and chief
executive.  Miranda replaced Benjamin Palma-Gil, one of the
government's representatives who will remain as director of
the bank.

Two executives working with other companies of Tan were
likewise elected to top posts in PNB.  As of Dec. 21, PNB
has total capital funds of P23.24 billion and total assets
of P216.66 billion.  The government is set to sell its
remaining 30-percent stake in PNB by April this year.
(Philippine Daily Inquirer  26-Jan-2000)

PRIMETOWN PROPERTY GROUP: Some investors swap investments
---------------------------------------------------------
Primetown Property Group, Inc. (PPGI) has reportedly
managed to convince some of the buyers of its residential
condominium project in Mactan Island to transfer their
investments to other ongoing projects.

Construction of Gold Coast Tower, a 24-storey residential
condominium, was stopped last year after PPGI experienced
financial problems.  Problems on the foundation of the
building initially delayed the construction. The economic
crisis worsened these problems and eventually forced the
company to stop work activities.

Ann Campo, officer-in-charge of PPGI's Cebu office, said
buyers of Gold Coast units can transfer advance payments to
other projects such as the Cebu Hilton Resort Tower and
Kiener Hills Subdivision in Cebu or the Diamond Head,
Meditel and Conservatorium in Metro Manila.  Ms. Campo said
the company has made a special arrangement with developers
of these projects to accommodate buyers of Gold Coast.

She also said PPGI is still negotiating with various
entities, including the Cuervo Group, for the possible
continuation of work on the project.  If PPGI successfully
negotiates for the continuation of the project, Ms. Campo
said they will still invite the former buyers and give them
priority over the condominium units.

The Gold Coast Tower, a joint project of PPGI and Aznar
Group of Cebu, was among the numerous residential
condominium projects that were initiated in Cebu during the
real estate boom in the early to mid-'90s.  Ms. Campo said
between 30% and 40% of Gold Coast Tower was sold before the
company decided to temporarily stop construction work.
(Business World  28-Jan-2000)

SAN MIGUEL CORPORATION: In talks for new loans
----------------------------------------------
San Miguel Corporation said yesterday it was in discussions
for new borrowings to finance existing debt. "We confirm
that the company is negotiating proposals from lenders who
are offering, in light of the current low interest rates,
to lend at favorable interest rates," the company said in a
statement. "Proceeds of such borrowings will be used,
among others, to restructure the company's debt maturity
profile with fixed rates of interest," it said. (Manila
Bulletin  28-Jan-2000)

SNC LAVALIN INC.: Sued by former local partner
----------------------------------------------
Canadian engineering firm SNC Lavalin Inc. could be in hot
water for allegedly "duping" AMA Group Holdings Corp. (AMA
Group), its former local partner for the extension of the
Light Rail Transit (LRT) Line 1.

AMA Group filed last year a case against Lavalin in
Singapore in accordance with the Arbitration Rules of the
Singapore International Arbitration Center on the ground of
unilaterally terminating the former despite the joint
venture agreement.

The two conglomerates forged an agreement on April 14,
1999, collaborating in the preparation, execution and
implementation of LRT Line 1 Project with an estimated
project cost of $600 million.  In the agreement, AMA
provided technical, organizational, and legal assistance
for Lavalin to secure the project.

The project is a joint venture undertaking of the Light
Rail Transit Authority (LRTA), with the private sector,
headed by Lavalin, AMA Group, and Marubeni. It is a 12-
kilometer extension project that aims to expand the
existing light rail transit service (LRT Line 1) from
Baclaran to Bacoor, Cavite.

Controversy arose when Lavalin allegedly illegally
terminated its partnership after AMA Group advised the
former, based on NEDA, DOTC and Flagship previous findings,
that it can not access the Special Yen Loan Package (SYLP)
of the Japanese government if it is pursued as a joint-
venture undertaking. The SYLP are very concessional funds
and joint venture projects should be lined up for Japanese
EximBank financing.

The SYLP, otherwise known as Obuchi Fund, is a soft loan
which carries an interest rate of less than one percent and
payable over 40 years with a 10-year grace period. However,
Lavalin apparently made it appear that the AMA Group
advocated the said funding strategy on a government-to-
government basis that would prejudice the interest of
Lavalin in getting a sizeable contract from the project.

According to AMA, it was not deviating from the basic
relationship with Lavalin, and that AMA group had been
working to give Lavalin a first crack in the venture
provided that it is most advantageous to the government.

In a related development, the AMA Group also filed on Jan.
21 a case of estafa against officers of SNC Lavalin
International Inc. namely, Robert N. Tribe, Robert S.
Adachi, Patrice M Pelletier and Mel Samson.

AMA Group said it has invested and spent a considerable
amount of time, goodwill and money amounting to P5 million
as actual damages, and loss of business opportunity in the
amount of P1.2 billion (or five percent of the total
project cost).

"Lavalin had only used AMA Group to its own advantage by
making it as a leverage to be able to contract and deal
vis-a-vis with the Philippine government and to be in a
position to corner the LRT Line 1 Extension Project," the
AMA Group said. (The Philippine Star  28-Jan-2000)


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

CLOB INT'L: Effective Capital gets good response to plan
--------------------------------------------------------
Effective Capital Sdn Bhd said yesterday it has received
good response to its irrevocable request and authority
(IRA) proposal to resolve the long-running impasse over
frozen Malaysian securities previously traded on
Singapore's Central Limit Order Book (Clob) market.

Chief executive officer Datuk Mohamad Moiz Ali Moiz said
many Clob investors had at a number of meetings with the
company shown strong interest in the IRA proposal which
would entail the staggered release of the frozen securities
for trading on the KLSE.

"They are now waiting for the offer document to be
despatched to them by Singapore's Central Depository (Pte)
Ltd (CDP) as soon as possible so that they can make a
definite decision," he told Star Business before a briefing
session by Effective Capital for Clob investors, bankers,
stockbrokers and other interested parties in Kuala Lumpur
yesterday.

The IRA proposal, if accepted, would see the migration of
the Clob securities from the CDP nominee account in which
they are held to individual Malaysian Central Depository
System (CDS) accounts of the investors, and their
subsequent staggered release for trading on the KLSE.

Under the proposal, the Clob securities are divided into
shares and non-shares, i.e. warrants, irredeemable
convertible unsecured loan stocks (Iculs), loan stocks and
transferrable subscription rights (TSRs).

For the shares, Effective Capital is proposing that they be
released progressively for trading on the KLSE over an 18-
month period. For the non-shares, a four-month timeframe
from the date of migration has been proposed.  For the
company's services, Clob investors would be charged a flat
administrative and transaction fee of 2% (in Singapore
dollars) of their portfolio value as of Dec 22, 1999.

Moiz said Effective Capital had submitted the IRA proposal
to the CDP in November and had subsequently held two
meetings in January to fine-tune it.

"The CDP had asked for an extension of time for acceptance
of our proposal from Jan 31 to Feb 22, and we have
accommodated the request. We have also amended some
procedural and technical issues according to their
specifications," he added.

The IRA proposal is the third option available in Effective
Capital's series of proposals which also involved a cash
offer and a closed-end fund.  Yesterday's briefing was
attended by eight Clob investors who are members of the
Securities Investors Association of Singapore (SIAS). Moiz
said Effective Capital was considering holding a similar
briefing in Singapore next week to reach out to more
investors.

The eight Clob investors who attended the briefing own
between them about RM10mil worth of the Clob securities.
The spokesman for the Singapore group, Kalpanath Singh,
said he was looking at the IRA scheme as a way of getting
back his investments as he could see no other firm
proposals being offered to the investors.

"I would like to finish this as soon as possible and I
think Effective Capital's IRA scheme is very reasonable. I
did not accept the earlier cash offer because of the steep
discount," he said.

Kalpanath, who had traded in Malaysian shares on Clob over
a 10-year period, has securities "worth a couple of million
ringgit" in the frozen account.  "I am a portfolio investor
and I use overdraft facilities to pay for the shares," he
said, adding that he currently had to fork out between
$S8,000 and S$10,000 a month to service his borrowings.

Kalpanath said he had written to the CDP for speedy
despatch of the offer document from Effective Capital.
(The Star  28-Jan-2000)


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

SAMAKKI SARN (DOKYA)PLC: Founder ready to lose business
-------------------------------------------------------
Narongsak Tantipinitwong, founder of Samakki Sarn (Dokya)
Plc, a bookstore chain, has made up his mind. He is willing
to lose control of the company he founded 17 years ago,
just to keep it alive.

"Now I realise that escaping from problems does not help
solve them. It only worsens the situation. A few years ago
when my company began to plunge into financial problems,
all 62 cheques I paid to settle purchases of books from my
suppliers bounced. I decided to run away." His decision was
wrong. His absence worsened the company's situation.

"If I accepted the facts and faced them then, the situation
might not be as bad as it is. So now I think it's time for
me to repay what I have to. I am willing to accept whatever
happens, even if I lose control of the company," Mr
Narongsak said.

With a registered capital of 300 million baht, Samakki Sarn
owes 810 million baht to several creditors. The largest
creditor is the Assets Management Corporation, 300 million
baht, followed by BankThai, 40 million baht and Krung Thai
Bank, 29 million baht.

Despite Dokya's problems, the creditors believed that the
company could survive its financial crisis, so they filed a
suit against it, proposing that the firm go through a
business rehabilitation programme.

The Central Bankruptcy Court has approved the request.
However, the creditors and the company's management could
not agree on the appointment of a planner.

After Mr Narongsak fled abroad a few years ago, a company
shareholders' meeting appointed Somchitr Rungtrakulchai as
the acting managing director.  The company's management,
now under Mr Somchitr, proposed appointing Thamnithi Law
Office as the planner, but two creditor groups separately
proposed South Sathorn Planner Co and Mr Narongsak. Because
of the disagreement, the court appointed Mr Narongsak as
the temporary planner, while a permanent planner will be
appointed after all parties concerned reach a consensus.

The company's current management is reportedly not happy
with Mr Narongsak, as they were angry when he fled abroad
and left them behind to fight the problems alone. (Bangkok
Post  28-Jan-2000)

SIAM CEMENT PCL: Plans debenture offering
-----------------------------------------
Siam Cement PCL said it will issue up to 50 billion baht
($1.34 billion) of debentures this year, a decision
analysts said should help reduce the company's exposure to
foreign-currency fluctuations.  But the debentures won't
replace the need to issue new shares to reduce the
company's reliance on debt financing, they said.

Thailand's largest conglomerate was forced to shelve a 30
million-share issue last year after failing to attract
global investor interest. Raising funds from debt issues
has proved a lot easier, with local investors keen to buy
debentures that offer higher interest rates than cash-
swamped banks.

Siam Cement issued 50 billion baht in debentures last year
with the most recent tranches offering annual interest
rates around 8%. Wednesday's plan for a new 50 billion baht
issue must first be approved by shareholders on March 29.
Siam Cement said it would set interest rates at "prevailing
market conditions at the time of the issue and offering.

The debentures will help Siam Cement refinance its U.S.
dollar-denominated debt in baht and reduce the company's
vulnerability to exchange-rate fluctuations. The company
has about half of its estimated 200 billion baht in debt in
foreign currency.

Most of these loans became more expensive to service last
year because of the baht's depreciation, said Lertchai
Kochareonrattanakul, a fixed-income analyst at Merrill
Lynch Phatra Securities. Meanwhile, the company derives
only 30% of to 40% of its revenue overseas, he said.

For 1999, analysts said foreign-exchange losses could cause
Siam Cement's net profit to fall to be between two billion
and three billion baht, from 19.35 billion baht.  For 1999,
analysts said foreign-exchange losses could cause Siam
Cement's net profit to fall to be between two billion and
three billion baht, from 19.35 billion baht.

Siam Cement's cash flow from its core petrochemical, pulp
and cement businesses is enough to service its debt, but
the debentures will give it financing flexibility, said ING
Barings analysts Paworamon Suvarnatemee.

"IF they issue the debentures it's because they want to
refinance existing debt. It's not because they're running
out of cash," she added.

The company has a debt-to-equity ratio of more than two as
result of a borrowing binge in recent years to finance
multiple investments in Thailand. Now, it hopes to reduce
cut borrowings by selling new shares and divesting itself
of many noncore businesses.  A plan to issue 30 million
shares in mid 1999, with Goldman Sachs as advisers, was
scrapped because of poor market conditions. At the time,
Siam Cement's share price had fallen sharply and an
international roadshow for the issue failed to attract
enough investors to buy the shares at 860 baht to 900 baht
apiece. (The Asian Wall Street Journal  27-Jan-2000)

SIAM CEMENT PLC: Sells tile units as part of rehab
--------------------------------------------------
Thailand's leading conglomerate Siam Cement Plc has sold
two of its ceramic tile units in the US to Italy-based
Florim Ceramic Group as part of its corporate restructuring
programme to focus on three core businesses -- cement,
petrochemicals and paper.

The company has also terminated investments in its Mexican
joint venture company Lamosa Revestimientos, according to
its filing with the Stock Exchange of Thailand.  The
disposal and termination caused an estimated loss of Bt1.2
billion, which will be accounted in the company's
consolidated balance sheet for the fourth quarter last
year. The announcement came one day after SCC revealed
plans to offer another round of debentures worth Bt50
billion.

Although the hefty loss would be booked in SCC's 1999 year-
end earnings performance, its share price was up Bt8 to
close at Bt636 yesterday after falling Bt16 on Wednesday.
Kan Trakulhoon, president of Cement Thai Ceramic Co Ltd,
SCC ceramic group's holding firm, said that the sold firms
were SCC's wholly-owned subsidiaries -- Tile Cera Inc and
Tile Cera Distributing Inc -- whose entire stake was held
by Tile Cera Inc.

"We divested investments in the two firms to Florim Ceramic
Group of Italy, one of the world's leading ceramic-tile
manufacturers," he said.

SCC currently owns 10 per cent of Florim Ceramic Group
which recorded annual sales of US$250 million in 1999.
Tile Cera Inc's plant, located at Tennessee in the US, has
an annual capacity of 120 million square metres while Tile
Cera Distributing Inc's network covers North America. Tile
Cera Inc also owns a significant equity in Lamosa
Revestimientos.

An analyst at a foreign broker firm said that the loss
incurred from divestments in the two firms and termination
of the joint venture was in line with expectations.

"Despite the huge loss, SCC's performance in the future
will be better with a lower burden in loss-making
subsidiaries and affiliate companies," she said.

She added that investors should not consider investment
simply by looking at net-profit figures, they should also
assess the company from its operating profits.  In the
first nine months of 1999, SCC posted a net loss of Bt4.62
billion and income from operations stood at Bt409.63
million. (The Nation  28-Jan-2000)

SUBMICRON TECHNOLOGY: Empire crumbles amid acrimony,debt
--------------------------------------------------------
Five years ago when Charn Uswachoke initiated his wafer
fabrication project, banks were eager to provide loans
without collateral. They shared his confidence about
developing Thailand's Silicon Valley, and his word was his
bond.  But the economic crisis turned everything around,
amid strenuously denied accusations that he siphoned off 10
billion baht from his businesses for his personal benefit.

Last year he lost Alphatec Electronics Plc, the flagship of
his high-technology empire. Yesterday he was forced to take
the first step to bankruptcy, along with Submicron, his
brainchild established to undertake the wafer project.

It was so different a few years ago, when top executives of
global banks were his regular companions. Yesterday Mr
Charn was solemn and alone in the Central Bankruptcy Court.

He started his business as a distributor of electronics
products, later establishing Alphatec Electronics Plc in
1988 as a manufacturer of integrated circuits. Sales
expanded rapidly, and Mr Charn became one of the most
prominent local businessmen.

He established Submicron Technology Plc in 1995 with
registered capital of only 20 million baht. However, his
credibility and his vision to invest in a "sunrise"
industry, electronics, attracted 23 creditors who offered
him a total of 19 billion baht in loans.

Most of the money was provided without collateral; Mr
Charn's credibility was sufficient. In 1996, Mr Charn
raised Submicron's registered capital to five billion baht
as the total investment cost of the project would be 24
billion baht.  But a year later, the country's economy
slumped, delaying his plan to list Submicron on the stock
market.

With the global electronics product market in recession,
all creditors suspended loans to Submicron.  As the
situation worsened, Mr Charn decided to abandon Alphatec by
allowing its creditors to take it over, while he tried to
rescue Submicron. Mr Charn faced a criminal suit by
Alphatec's creditors, accusing him of siphoning more than
10 billion baht from the company. The case is still pending
in court.

Meanwhile, all creditors of Submicron agreed that the
company's wafer fabrication project was viable. However, it
needed to pass through a business rehabilitation programme,
with the conversion of debt to equity very likely.  Mr
Charn rejected swapping debt for shares, as he would lose
ownership of the project. He was still battling when he and
his company were taken to the bankruptcy court by Siam City
Bank.

Despite the outcome, the wafer fabrication project displays
his business vision. The proposal was initiated at least
five years before the government decided to launch a
similar venture.  A senior Industry Ministry official said
yesterday it was possible for the government to take over
Mr Charn's Submicron factory in Chachoengsao, although
several factors would have to be taken into account in
calculating the rate of return.

The government has proposed a US$1-billion wafer
fabrication project, with the state holding 26% and foreign
investors invited to take 74%.  (Bangkok Post  28-Jan-2000)

SUBMICRON TECHNOLOGY: Bankruptcy Court freezes assets
-----------------------------------------------------
The Central Bankruptcy Court yesterday issued an order to
freeze Submicron Technology's assets.  

Siam City Bank (SCIB) last June filed a petition with the
court seeking to freeze the assets of financially ailing
Submicron.  The court petition claimed the company owes the
bank 1.2 billion baht and was debt-ridden and incapable of
paying back loans.  According to the court order, SCIB has
2 months to file a claim to seize the company's assets.

Meanwhile, the company retains the right to ask for debt
restructuring under the law within 2 months. If it wants to
do so, it must seek the consent from Legal Execution
Department, an agency under the Ministry of Justice.
Following the approval, the company may solicit its
creditors for a majprity vote to allow drafting of debt
restructuring process, the court official said.

Meanwhile, Bangkok Bank (BBL), one of Submicron major
creditors, said the bank did not file the bankruptcy motion
because it still believed that the company could come up
with a strategic partner to bail it out.

Submicorn was founded in mid April 1991 under the name
Spectrum Electronics as a wafer fabricator. A wafer is a
micro circuit board widely used in high technology
electronic devices. By 1995 it was registered as a public
company under new name--Submicron Technology. While Thai
economy was prosperous in the mid 90's, the company was
heavily courted by big financial institutions, offering
loans worth up to 19 billion baht.

However, in 1996, US based electronics company, announced
it wanted to pull out as a partner. It's wafer fabrication
facility construction was halted abruptly, ending the
project. (Business Day  28-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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