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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

            Wednesday, February 9, 2000, Vol. 3, No. 28

                                   Headlines


* C H I N A  &  H O N G  K O N G *

S MEGGA INTERNATIONAL HOLDINGS: Deciding on proposal
WIN SUCCESSFUL SECURITIES: Assets don't meet client claims


* I N D O N E S I A *

PT ASTRA INT'L: IBRA receives five bids for its stake  
PT ASTRA INT'L: IBRA repaces president
PT BAKRIE SUMATERA PLANTATIONS: Replaces Lewis & Peat
PT BANK INDONESIA: No misconduct in use liquidity credits
PT SUPARMA TBK: Reports finances to JSE
PT TIMOR PUTRA NASIONAL: Gov't may ask Kia to takeover debt


* J A P A N *

JAPAN MEDICAL DYNAMIC MARKETING: To slash liabilities
NAGASAKIYA CO.: Expects 23.9B Yen FY99 net loss
NICHIEI CO.: Penalty forces Nichiei to suspend operations


* K O R E A *

DAEWOO MOTOR: Ford, Renault to send top execs to Seoul
SAMSUNG MOTOR: Ford, Renault to send top execs to Seoul
SAMSUNG MOTORS: To be sold to Renault


* T H A I L A N D *

FINANCE ONE: 3 ex-governors targeted for financial faux pas
iTV Plc: New capital hoped means of keeping independence
MAGIC LAND: Loses lease, to shut down in June
ROBINSON DEPT.STORE: In negotiations with creditors
SRITHAI SUPERWARE: SET has rehab plan
SUBMICRON TECHNOLOGY PLC: Joint investment memo near done
THAI AMARIT BREWERY: Rehab plan approved


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

S MEGGA INTERNATIONAL HOLDINGS: Deciding on proposal
----------------------------------------------------
Cash-strapped S Megga International Holdings yesterday said
the terms of the revised investment proposal, which has
been submitted by a potential investor, were still under
discussion and a decision will be made later in the week.

"The terms of a revised third-party proposal are still
under negotiation. The company believes that there will be
a decision on or before Friday. Shareholders and the public
will be informed accordingly," a statement said.

The statement went on to say the revised proposal might or
might not be pursued, subject to the decision of directors
after consultation with major bank creditors.  The company
issued the statement, which will be published today, after
it noted a recent increase in its share price.  The price
of S Megga shares rose by 11.1 per cent, or 3 cents, and
closed at 30 cents on 3 February _ the last trading day
before the Lunar New Year holiday. About 32.4 million
shares changed hands on the same trading day.

S Megga is primarily involved in the development,
manufacture and sale of telecommunications products. It was
listed in Hong Kong in 1991.  The group has been in some
financial difficulties since 1997 and this led to an
informal standstill arrangement with its bank lenders and
noteholders in 1998. As at the end of July last year owed
about $472.3 million.

This include about $252.9 million of unsecured bank
borrowings, $36 million secured bank borrowings and about
$183.4 million represented debts due to its noteholders of
the US$47.5 2.5 per cent convertible loan notes issued in
January 1994 and due in 2002.

Early last November the group reached a debt-restructuring
agreement with all of six creditor banks to settle debts of
about $290.2 million. It has also reached an agreement with
noteholders to settle about $183.4 million debt.  The
restructuring agreement involved a cash payment of about
$66.2 million; issuance of about $39.3 million three-year
convertible notes, entitling the holders to convert them
into shares at the price of 10 cents each.

Other terms included are: $20-million of debt will be
refinanced and together with a new loan of $36 million will
be secured by a legal charge over property; the issuance of
approximately 3481 million new shares at 10 cents each to
the financial creditors. The new shares to be issued in
settlement of the debts will represent 78.1 per cent of
enlarged issued share capital.

In the middle of November 1999 the group received an
investment proposal submitted by a third party after the
completion of the financial due diligence review. (Hong
Kong Standard  08-Feb-2000)

WIN SUCCESSFUL SECURITIES: Assets don't meet client claims
----------------------------------------------------------
Win Successful Securities does not have assets to meet
claims of its clients, according to Joanne Oswin and
Stephen Caswell of PricewaterhouseCoopers, provisional
liquidators appointed by the High Court.

There will be a significant shortfall of securities
currently valued at 2.4 mln hkd at CCASS (a Hong Kong
clearing system) to meet client claims of 62 mln, they
said.  There will also be a significant shortfall of cash
and company assets to meet claims by clients and creditors
of the brokerage.

The task of establishing what assets may be available for
clients and creditors is complicated because some directors
and employees of Win Successful have been arrested, they
added.  They also recommend that all clients of the
brokerage contact the Stock Exchange of Hong Kong to lodge
a claim for compensation with the Unified Exchanges
Compensation Fund.  (AFX News Limited  08-Feb-2000)


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

PT ASTRA INT'L: IBRA receives five bids for its stake
-----------------------------------------------------
Chairman of the Indonesian Bank Restructuring Agency (IBRA)
Cacuk Sudarijanto said on Monday the agency had received at
least five bids for its 45 percent stake in the publicly
listed auto giant PT Astra International after it opened
fresh bidding on Friday.

Cacuk said this was a good signal as it indicated that
foreign investors were still interested in Astra despite
the botched-up deal between IBRA and an American investor
group led by Newbridge/Gilbert.  Cacuk said he was
optimistic that the Astra sale could be completed by March
25.

"There are already five bids which have landed on my
table," he said at a televised debate.

He declined to name the investors and their price offer but
said IBRA had sent invitations to about 40 potential
investors to join in the bid for Astra.  He reaffirmed that
the agency was expecting a minimum price of about Rp 4,000
(US$0.53) per share for the Astra sale.

This, Cacuk said, was based on the price offered by Credit
Lyonnais Securities Asia (CLSA), which is advising France-
based Lazard Freres & Co., in its letter to IBRA last
month.  Cacuk said IBRA could not follow up the CLSA offer
at the time because the agency was still bound to an
exclusivity agreement with the Newbridge/Gilbert
consortium, which only expired on Jan. 31.  This agreement
was not extended because the consortium failed to conduct
due diligence on Astra and provide a 30 percent up-front
payment.

"Now everyone is free to join in the bid. I hope Credit
Lyonnais is still interested, and I expect the price
(offer) to remain at about Rp 4,000 so that this can be the
benchmark for other investors," he said.

IBRA is expected to raise more than Rp 3 trillion from the
Astra sale in a bid to meet its target of raising Rp 17
trillion to help finance the current state budget ending on
March 31.  Cacuk said the agency had so far earned Rp 10.5
trillion from its asset sales and loan recovery, but IBRA
senior deputy chairman Arwin Rasyid earlier said the agency
had raised more than Rp 12 trillion.

Another massive IBRA deal expected to be completed next
month is the initial public offering (IPO) of Bank Central
Asia (BCA) with the target of raising at least Rp 3
trillion.  Cacuk said the Astra deal must be completed
before the March 25 deadline, not only because it was
important to meet the Rp 17 trillion revenue target for the
state budget but because a smooth transaction would send a
strong signal to foreign investors that the government was
serious about its plans to dispose of bank assets
controlled by the agency.

IBRA has been criticized by both investors and the
International Monetary Fund (IMF) for being too slow in
disposing of its assets, estimated at around Rp 600
trillion (book value).

"Our mandate is to expedite the sale process, but not
through fire sales," said Cacuk, who was appointed IBRA
chairman early last month.

Cacuk also reaffirmed the agency's determination to change
Astra's management at a shareholders meeting on Tuesday.
IBRA has accused the Rini Soewandi-led management team of
obstructing the Astra sale process with the
Newbridge/Gilbert consortium.  Separately, Rini reiterated
on Monday that Astra's management did not have any
intention of obstructing IBRA's efforts in selling its
Astra stake, nor did it seek to block foreign investors
entering the company, as implied in some newspaper reports.

"Our only concern is that the transaction be done
transparently and fairly, according to securities market
regulations and good governance practices," Rini told a
crowded news conference.

At the conference, the Astra chief executive released
copies of a letter she earlier sent to President
Abddurrahman Wahid, who is now on an overseas visit, where
she clarified the controversy over the allegation that she
had deliberately obstructed IBRA's deal with an American
investor consortium led by Newbridge Capital and Gilbert
Global Equity Partners.

"What we are opposed to is the nontransparent manner in
which IBRA appointed Newbridge/Gilbert as the preferred
bidder," Rini added.

The consortium complained that it wasn't able to conduct
due diligence on Astra and to meet the deadline for
concluding a definitive agreement because of a completely
uncooperative attitude on the part of Astra's management.
Frustrated by this process, IBRA asked in early December
for an extraordinary meeting of Astra's shareholders on
Feb. 8 and proposed a replacement of management.

IBRA is accepting bids from interested investors up to Feb.
23, when it will publish a shortlist. A week later, those
on the shortlist will have the opportunity to conduct due
diligence on the company, and must place final bids by
March 20.  The successful bidder will be announced on March
25.  (The Jakarta Post  09-Feb-2000)

PT ASTRA INT'L: IBRA repaces president
--------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) has
replaced PT Astra International president director Rini
Suwandi in a move analysts see as smoothing the way for the
sale of the government's 45 pct stake in the company.

At an extraordinary general meeting of shareholders, 78.45
of attendees voted to replace Suwandi with Theodore "Teddy"
Permadi Rachmat and to dismiss chief financial officer
Dorys Herlambang.

"In line with proposals from IBRA, the meeting decided to
honorably discharge Rini Mariani Sumarno Suwarno from her
position as a director as well as Dorys Setiawati
Herlambang," Astra said in a statement.

IBRA officials at the EGM said the move was aimed at
speeding the stake sale rather than a personal attack on
Suwandi.  "This proposal seeks to ensure that the members
of the board of directors are in alignment with IBRA in
carring out IBRA's mission to sell the Astra shares,"
the agency said in a statement. "Over the past several
months, progress on the sale of the Astra shares
has been limited."

The dismissal of Suwandi and Herlambang follows a dispute
over attempts by IBRA to sell the government's stake, which
was pledged by bankrupt conglomerates and tycoons in return
for government credit during the financial crisis.  In
December, IBRA named a consortium led by U.S. investors
Newbridge Capital and Gilbert Global Equity as preferred
bidders for the stake.

However, Astra management, led by Suwandi, refused to allow
the investors to perform due diligence on the company,
citing technicalities with capital market laws. Suwandi's
opposition prompted speculation that management was trying
to protect vested interests in Astra, whose former
shareholders included major Suharto-era businessmen such as
the Salim family and timber tycoon Mohamad "Bob" Hasan.
Astra's management has rejected the claims, saying it was
only trying to protect minority shareholders.

IBRA's new chairman Cacuk Sudarijanto immediately moved to
fire Suwandi after his appointment last month.
Sudarijanto also threw the bidding process open to other
investors after the Newbridge consortium's preferred status
expired last week. IBRA has since received five bids from
international investors, he said.

Analysts said Suwandi's replacement, Rachmat, is a
political survivor who steered the company through the
1990s until he was eventually toppled by Suharto confidants
Hasan and Salim in 1998 and replaced by Suwandi. Following
today's EGM, Rachmat pledged to back IBRA's attempts to
sell the stake.

"We will treat all investors interested in Astra
transparently, equally and fairly," Rachmat told a press
conference. "What is important is that we provide the same
data to all interested investors during the due diligence
process, which would help them in their decision-making
process."

The meeting also decided to accept the resignations of
Somala Wiria, Anthony Salim, Usman Admadjaja and Teddy
Rachmat from the board of commissioners.  Meanwhile, it
reappointed Abdulrahman Ramly as president commissioner
and Benny Subianto as vice-president commissioner and added
four commissioners, IBRA officials Sumantri Slamet,
Mahmuddin Yasin and Mardi Sutanto, as well as a prominent
economist, Sri Mulyani Indrawati.

"It is expected the IBRA officials will resign from their
roles as commissioners when IBRA no longer has a
significant shareholding in Astra," the agency said in its
statement.

The meeting also decided to back an IBRA proposal to
conduct a rights issue to "meet the company's needs for
funds."  The move overturned an earlier proposal from
Astra's management for the new share issue to be done
without pre-emptive rights.  Most of the proceeds are
expected to be used to meet debt repayments, which are seen
at 1 trln rupiah this year, according to Astra officials.

In its statement, Astra added it is in negotiations to
divest its stakes in joint ventures with Honda Motor Co Ltd
and Isuzu Motors Ltd and in PT Pramindo Ikat in order to
raise further funds.  Analysts said investors were not
overly concerned with the replacement of Suwandi but were
more worried about the potential dilutionary impact of
the rights issue on share prices.

Such concerns brought the company's share price off a high
of 3,950 rupiah per share to close down 50 rupiah at 3,775
on volume of 61.279 mln shares.

"Now IBRA is free to conduct its stake sale program without
any further resistence from the Astra management," Sassoon
Securities head of research Ari Pitoyo said.

Bakrie Securities dealer Denny Riyadi said: "To some extent
I think the fall in Astra's share price is normal because
people normally sell on (such) news. But I think some
investors are actually more worried about the approval
of the rights issue" than the replacement of Suwandi, he
said.

BNP Prime Peregrine head of research Harry Su said he sees
Rachmat's appointment as temporary because the new
investors will probably install their own management after
the government's stake is sold at end-March.  He said that
in the long-term, Rachmat might not be the right person,
anyway, to lead Astra.  "He is too old and he also has his
own business to manage. Astra should be led by someone
younger who has ideas and energy," Su said.

Sassoon's Pitoyo said IBRA insistence that any new share
issue should be done through a rights issue rather than a
placement was in order to ensure potential investors in its
stake are not frightened off.  A placement would dilute
their holdings. Going forward, it is important for the new
president director Rachmat to quickly make clear his vision
for the company, a researcher with an independent
consultancy said.

He said Suwandi had begun efforts to prepare the company
for international trade agreements, including those
covering the Association of Southeast Asian Nations Free
Trade Area (AFTA), under which the domestic sedan market
will be opened to competition in 2002. Under Suwandi, the
company was preparing a new strategy focused on moving
towards distribution, marketing, e-commerce and after-sales
service and away from manufacturing.

Rachmat's plans, on the other hand, are still unknown.
"The picture of the industry will change and Rini has done
some groundwork for it," the researcher said. "But what
will Teddy's approach be? Is he going to continue with
Rini's plans or take a different tack? This is still an X-
factor for anyone investing in Astra."  (AFX News Limited  
08-Feb-2000)

PT BAKRIE SUMATERA PLANTATIONS: Replaces Lewis & Peat
-----------------------------------------------------
Indonesia's Bakrie Sumatera Plantations (BSP) has signed
contracts with two new rubber trading firms to fill the
role of its collapsed Lewis & Peat rubber trading
operations including one in Singapore, its chief executive
said.

"We have signed new contracts with two world-class traders
in Japan and the US to help sell our rubber, so they will
absorb what used to be sold through L&P," chief executive
Ambono Janurianto said.

He said BSP would continue to sell 25 per cent of its
products through traders and 75 per cent directly to end-
users. "We get a smaller margin from selling the products
through traders, but unlike selling them directly
to end-users, we get some advance payments, so in that way
it is good for us," he added.

Ernst & Young UK has appointed an administrative receiver
for Lewis & Peat's operations in London and Singapore and
is seeking a buyer for the London operations.  On Jan 17,
the US unit filed for Chapter 11 bankruptcy protection,
which allows it to continue operations while reorganising
its business and finances. (Singapore Business Times  08-
Feb-2000)

PT BANK INDONESIA: No misconduct in use liquidity credits
---------------------------------------------------------
The House of Representative on Monday said that so far it
has found no misconduct over the obtainment and use of Bank
Indonesia's emergency liquidity credits by four private
banks.

The chairman of the House's Commission IX for finance and
banking, Sukowalujo Mintorahardjo, said that the House did
not find any indication of wrongdoing after conducting a
hearing with executives of Bank Central Asia, Bank Danamon,
Bank Dagang Nasional Indonesia (BDNI) and Bank Umum
Nasional (BUN).  BDNI and BUN were already closed down by
the government.

"However, we will crosscheck their statements with the
Indonesian Banking Restructuring Agency (IBRA)," said
Sukowalujo, also chairman of the House's special team,
after a hearing with former directors of Bank Danamon and
BUN.

The four banks were the largest recipients of the liquidity
credits. They were among those whom the Supreme Audit
Agency (BPK) suspected of having improperly received and
used BI's liquidity support during the economic crisis in
1997 and 1998.

"We've asked them about the irregularities as reported by
BPK, but they haven't even read BPK's report," he said.

Sukowalujo said that the main problem behind BPK's charges
of malfeasance may have been because BI or the government
acted too late in providing its blanket guarantee program
for bank obligations.  He said BI or the government should
have introduced its guarantee program before it closed down
16 private banks in November 1997, which triggered a demand
for cash in most local private banks.

"The liquidation of these banks had caused people to loose
confidence in our banks," he said.

Meanwhile, Usman Atmadjaya, former chairman of Bank
Danamon, rejected claims that BI's liquidity funds had been
used to finance companies under its own business group.

"Companies under the Danamon group supported the bank when
it was out of money," Usman said, adding that the liquidity
credits were partially used to cover the cash run which
amounted to some Rp 29.6 trillion (US$3.9 billion).

According to Usman, the bank paid Rp 13.7 trillion in cash
to cover BI's credits, while the rest was to be covered by
capital injections from the government through its
recapitalization program.

Leonard Tanubrata, former BUN president, also denied any
malfeasance in the use of BI's liquidity funds. He said the
funds had been channeled and used in accordance with proper
procedures.  Leonard declined to mention how much BUN
received in liquidity funds but said that in total the bank
had repaid Rp 14 trillion in cash, property and other
assets.

BCA was the largest recipient of liquidity credits,
obtaining more than Rp 30 trillion, followed by BDNI with
Rp 28 trillion.  Last week, directors of BCA and BDNI
reported to the House's special team that BCA had repaid
the government Rp 19 trillion, while BDNI had repaid Rp
27.4 trillion mostly in property and other assets.

During last week's meeting, the bank was unable to answer
the team's questions as, due to an administrative mistake,
the bank's new management attended the meeting instead of
the former management whom BPK suspected of misconduct.
Today, the special team will have a hearing with former BI
and government officials. (The Jakarta Post  08-Feb-2000)

PT SUPARMA TBK: Reports finances to JSE
---------------------------------------
Responding to the 02-Feb-2000 letter of the Jakarta Stock
Exchange, PT Suparma Tbk gives the following information:

1. Referring to the Company's Business Plan, the company's
selling target in 2000 projected increase 5% from year 1999
to Rp 430 billion. The increase was caused by increasing of
selling quantity in line with national economic growth in
year 2000.

2. The company's selling value in 1999 increased 5% to Rp
409 billion compared with selling realization in year 1998.
The selling increasing was caused by increasing of local
selling volume totaling 16% and export totaling 7% and
company's profit margin in turn relative stability.

3. The majority creditors agreed to reschedule their debts
until 2002. Total of syndication debt is US$ 43.000.000
that majority of syndication bank had agreed the
restructuring and recently it is still in documentation
preparation phase, and long term debt from other creditors
totaling + US$ 15.000.000 which will be following the
syndication debt scheme:

-- The Payment Scheme :
Year 1999 : 3,5% basic payment from total of debt.
Year 2000 : 5% basic payment from total of debt.
Year 2001 : 7,5% basic payment from total of debt.

-- Interest Loan : LIBOR + 2,0% to 2,4%

There is no other material matters which should be
informed, signed Yose Rizal, Head of Listing Division and
Bambang Aribowo Pjs., Head of Trading Division.  (Jakarta
Stock Exchange  07-Feb-2000)

PT TIMOR PUTRA NASIONAL: Gov't may ask Kia to takeover debt
-----------------------------------------------------------
The government is considering asking Kia Motors Corp to
take over the debt of national car company PT Timor Putra
Nasional, Antara news agency reported, citing an Indonesian
Chamber of Commerce official.

The report, citing Soy Pardede, the chamber's trade
division chief, said Indonesia may evaluate Kia's ability
to assume the Timor debt during a two-day visit to Seoul by
President Abdurrahman Wahid beginning Thursday.  Antara
reported that members of Wahid's delegation are hopeful Kia
would be in a position to do so.

"On Feb 11 a number of Indonesian officials and businessmen
will visit Kia Motors to study their capacity for taking
over Timor (Putra Nasional). We just have to wait (for the
results)," Pardede said.  "Basically Indonesia does not
want to bear the burden, and TPN's debts and outstanding
taxes must be settled. Now that South Korea has been
enjoying a robust recovery it is well positioned to import
more from Indonesia and even make new investments through
asset acquisitions," Pardede said.

Kia Motors Corp, however, said it has no plans to revive
its auto manufacturing project in Indonesia.  

"We have no plans to revive Indonesia's national car
project at the moment," said Choi Kyong-Whan, an official
at Kia's KD (knock-down) Project Team in Seoul. "The
present situation does not allow us to make such a decision
as our former business partner in Indonesia is still
suffering hardships," he added.  (AFX News Limited  08-Feb-
2000)


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

JAPAN MEDICAL DYNAMIC MARKETING: To slash liabilities
-----------------------------------------------------
Japan Medical Dynamic Marketing Inc. (7600), an importer of
medical equipment, hopes to reduce interest-bearing
liabilities by about 2.4 billion yen from a year earlier to
5.9 billion yen as of May 31.

Proceeds from the sale of real estate, subsidiaries, and
securities will be used to repay debt. By strengthening its
balance sheet, the firm aims to be able to raise funds as
necessary for future product development.

At the end of April, Japan Medical Dynamic will sell a
hotel in Okinawa and three properties in Tokyo. It also
plans to pay down debt with 400 million yen of liquidity,
as well as roughly 200 million yen from the sale of shares
in various financial institutions. (Nikkei  08-Feb-2000)

NAGASAKIYA CO.: Expects 23.9B Yen FY99 net loss
-----------------------------------------------
Nagasakiya Co. (8262) announced Monday that it expects to
report 23.9 billion yen in net losss and 18.1 billion yen
in consolidated net losses for the fiscal year ending
February 2000.

The figures mark a sharp reversal for the supermarket chain
operator, from initial estimates of 200 million yen in
parent-only net profit and 3 billion yen in consolidated
profit.  Slumping sales led to the company's first-ever
operating loss. In addition, its reserve to cover losses
incurred by group firms ballooned.

Nagasakiya expects liabilities in excess of assets to rise
to 8.4 billion yen on a parent-only basis and to 16.5
billion yen on a group basis. "We will draw up a new
business plan as soon as possible," said a company
executive.

Nagasakiya is expected to take 17.1 billion yen in
extraordinary losss. At the same time, it will likely
report 200 million yen in extraordinary profit, way short
of an initial estimate of about 7 billion yen in such
profit from the sale and leasing of three outlets. The
company apparently failed to find takers for the
properties. (Nikkei  08-Feb-2000)

NICHIEI CO.: Penalty forces Nichiei to suspend operations
---------------------------------------------------------
Nichiei Co. (8577) suspended virtually all operations at
its head office as well as at its 180 branch offices Monday
as ordered by the Ministry of Finance's financial bureau.

The company is being penalized for allegedly allowing
former workers to collect loans using questionable
practices. The Kyoto-based company cannot make or collect
loans during the suspension.  The firm's Tokyo and Chiba
branch offices will be closed until May 6 and the remaining
offices until Feb. 13.  Nichiei may only accept loan
repayments or engage in other services if not doing so
would cause hardship for customers. (Nikkei  07-Feb-2000)


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

DAEWOO MOTOR: Ford, Renault to send top execs to Seoul
SAMSUNG MOTOR: Ford, Renault to send top execs to Seoul
-------------------------------------------------------
Top-level officials of Ford Motor and Renault will visit
Korea separately this month for negotiations to take over
Daewoo Motor and Samsung Motors, sources said yesterday.

Ford Vice Chairman Wayne Booker will visit Korea to explain
his company's plan to buy Daewoo Motor to the government
and creditors this month, though his exact schedule has not
yet been set, said the sources. Paul Drenkow, Ford director
in charge of Asia-Pacific operations, visited Korea last
week to reiterate his company's will to participate in the
auction to creditors and examine the progress of a Ford
investigation team working on Daewoo Motor's documents.

Renault is also planning to send a vice president-level
official in the middle of this month to examine the outcome
of asset evaluation and due diligence and suggest pricing
terms for purchase of Samsung Motors. Industry officials
predict Renault will start full-fledged negotiations after
suggesting a price for Samsung at the end of this month
based on the outcome of its inspection. (Korea Herald  08-
Feb-2000)

SAMSUNG MOTORS: To be sold to Renault
-------------------------------------
Samsung business group announced Monday that it has decided
to sell Samsung Motor and the group's commercial vehicle
section as a single unit to France's Renault.

Samsung said it has been talking with Samsung Motor
creditors to fine-tune details of the deal. According to
one high-ranking official at the restructuring office of
Samsung, the package sale has been moving forward, with a
vice chair of Renault due to arrive in Seoul this Thursday.

Samsung said they are hoping negotiations with the visiting
Renault executive will see all parties reaching a final
agreement on the purchase price. The Samsung official said
his group is hoping that the two auto units will bring in
W600-700 billion and that a formal sell-off contract can be
signed with Renault as early as March.

It was reported that Samsung Motor creditors had been
asking for W800 billion, while Renault has been offering
just W400 billion. In turning over the sales and after
service network of Samsung Motor, Samsung is reportedly
planning to retain 20% equity in the automobile firm.

Sources say Renault plans to move its mini-van assembly
operations to Samsung Motor, while its Japanese affiliate
Nissan intends to produce its medium-sized Maxima model at
Samsung Motor's Pusan plant for export to international
markets. (Digital Chosun  08-Feb-2000)


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

FINANCE ONE: 3 ex-governors targeted for financial faux pas
-----------------------------------------------------------
Three former central bank governors have been singled out
for abuse of power and potential civil liability in the
bail-out of ailing financial institutions during the
financial crisis.

A report by an investigative committee appointed by Finance
Minister Tarrin Nimmanahaeminda singled out former central
bank governors Vijit Supinit, Rerngchai Marakanond and
Chaiyawat Wibulswasdi for actions leading to damage to the
state.  Also identified were former deputy governor Jaroong
Nookwun, assistant governor Siri Ganjarerndee and Swangchit
Chaiyawat, former manager of the central bank's Financial
Institutions Development Fund.

The investigation centred around whether there was an abuse
of authority by central bank officials in approving aid
through the fund to five firms: the Bangkok Bank of
Commerce, Thai Fuji Finance and Securities, Finance One,
Royal International Finance and Securities and Ekapat
Finance.  The report noted numerous abuses of authority and
procedural violations.  Total losses for the fund have been
estimated to top 800 billion baht.

Senior central bank officials, including the FIDF chairman,
the governor and deputy governors, were responsible for the
damages arising out of their actions, the report said. The
committee would prepare an executive summary for Mr Tarrin
by Feb 22. He is then expected to present the report to the
cabinet for review.

Mr Jaroong, one of several officials singled out by the
report, said he was "not surprised" at the results.  He
said he was uncertain about how the report would be used,
and that many more steps were ahead before a criminal or
civil case was filed.  Another former central bank official
blamed in the report admitted that regulations had been
violated, but insisted no malicious intent was present
among regulators.

"At the time, there were great fears that the banks would
collapse, because of deposit runs and a lack of public
confidence. We decided to lend first and seek collateral
later," he said.

Another central bank official blamed political interference
in the BBC for worsening the financial crisis.  The review
said total state assistance to the BBC from April 1996 to
December 1998 was 102.27 billion baht.  But loans from the
FIDF were made in violation of regulations in several
cases, including in the accounting of bank assets and
collateral used to secure the state loans.

Loans given by the fund in June 1996 were backed by
securities and notes which did not qualify as acceptable
collateral under central bank rules.  A large amount of
assistance was also made in the form of short-term
deposits, rather than loans, in contradiction of a
notification by the FIDF to BBC dated May 1996.

Loans of 29.5 billion baht was given to the BBC, against
collateral of just 7.2 billion. Loan approval was also made
before formal written applications for assistance were made
by the bank to the Financial Institutions Development Fund.
Loans of 15 billion baht to Thai Fuji Finance, meanwhile,
were found to have been used to repay the firm's foreign
loans, violating fund rules.

Investigators said central bank officials approved
assistance to Thai Fuji well beyond the amount of
collateral pledged. Aid in the form of short-term deposits
was not converted into secured loans under fund rules.
Approval was also given by central bank officials to change
pledged collateral to notes issued by BBC, a shareholder in
Thai Fuji.

In the case of Finance One, investigators said assistance
was given by the fund despite knowledge of the company's
deteriorating position.  Little consideration was made on
the ability of Finance One to repay the loans, the report
said.  As of May 1998, Finance One owed the FIDF 44.8
billion baht.

The central bank was aware of Finance One's difficulties as
early as 1994, noting several accounting irregularities in
the booking of profits during its audit in 1995.  The
central bank cited share transactions with other firms in
the One group, noting that this created an unsustainable
and unrealistic picture of profits for Finance One.

The report said the FIDF gave loans of 10.3 billion baht to
Finance One from March 1997, although only 7.5 billion was
actually approved.  Mr Tarrin appointed the committee in
1998 to follow up a previous report on the causes of the
crisis prepared by Nukul Prachuabmoh, a former Bank of
Thailand governor.

How the report will be used is largely a political issue,
according to Chavalit Thanachanan, a former central bank
governor and a member of the Nukul commission. He believed
prosecuting former regulators would be difficult, given the
need to prove intent. (Bangkok Post  08-Feb-2000)

iTV Plc: New capital hoped means of keeping independence
--------------------------------------------------------
iTV is raising its paid-up capital to two billion baht from
one billion, in an effort to maintain public ownership and
keep the company independent. Its registered capital is
three billion baht.

"I had proposed that the company divest new shares to the
public and its employees," said Suthichai Yoon, editor-in-
chief of The Nation Group and a director of iTV Plc.
"In my proposal, I wanted at least 50% shares of iTV to be
owned by the public and the employees."

Mr Suthichai claimed that he had proposed the plan to the
iTV board six months ago, but it had been rejected.
However, he planned to propose it to the board again soon.
The Nation Multimedia Group declared yesterday that it
would not allow any politician or investor group to
dominate iTV.

"iTV must be independent. The Nation will fight to the last
if any politician or investor would dominate it. If any
group plans to do so, I will inform the public," said
Suthichai.

Thai Rak Thai Party leader Thaksin Shinawatra was earlier
reported to have been approached by Siam Commercial Bank to
take over iTV.  However, Dr Thaksin said no one had
approached him, although he was indeed interested in
acquiring iTV's equity.  Mr Suthichai denied earlier
reports that he had proposed to the iTV board that he
should ask a Singaporean telecom firm to acquire shares in
iTV.

A highly-placed source in the Crown Property Bureau, which
together with its subsidiaries has a 30% shareholding in
iTV, said the bureau was considering options to sell iTV's
new shares.  He said it was the bureau's policy to dilute
its investments in non-core businesses, including iTV, so
it was very likely that the company would not subscribe to
iTV's new shares.

The source admitted that the bureau wanted to sell new iTV
shares to strategic partners as the shares would get a
better price than if floated to the public.  But he
insisted that Mr Suthichai had proposed to sell the shares
to a Singaporean firm.  The source said although the bureau
wanted to have strategic partners, it did not agree to sell
the shares to foreign investors as they could become a
threat to iTV's independence.

Although Mr Suthichai denied that he proposed to sell
shares to a Singaporean telecom firm, he said he had been
approached by a number of foreign investors who wanted to
take equity in iTV.

"My priority is to sell shares to the public. But if it is
necessary to sell shares to strategic partners, The Nation
Group has set very tough conditions to prevent new investor
groups from dominating iTV's news policy and to ensure its
independence," Mr Suthichai said.

He said if iTV was not independent, it would lose its
ability to attract viewers and that would be the end of the
station.  Mr Suthichai also said he would fight to keep iTV
a "news and current affairs station" and not an
entertainment station dominated by soap operas.  He said
iTV would be a better station if its management focused on
programming quality, and not just profits, and followed the
path set by The Nation Group. (Bangkok Post  08-Feb-2000)

MAGIC LAND: Loses lease, to shut down in June
---------------------------------------------
A recent announcement by Magic Land (Dan Neramit), the
first stand-alone amusement park in Thailand, of its plan
to close the business in the next four months is evidence
of the financial predicament park operators are
experiencing.  

Reluctance by a land owner to renew a 25-year lease that
will expire in June, was cited for the shutdown.  But a
hidden reason appears to be the gloomy view held by park
executives of the long-term financial viability of leisure
parks.

"A huge investment is needed if we decide to keep running
the park. Buying new equipment, maintaining existing pieces
and launching marketing promotions requires around 600
million baht. It will take at least 10 years to break
even," said Amphol Suthipien, marketing director of Magic
Land.

Chaiwat Luangamornlert, president of Siam Park (Suan Siam),
the largest water and amusement park in the country, has
the same view.  He said the amusement park business
requires a minimum investment of one billion baht. Beside
management costs, park operators bear a high burden of
equipment maintenance and import duties for new equipment.
Just for the installation of a roller-coaster, they have to
pay almost 500 million baht.

"Given the burden, it's quite difficult for a new stand-
alone park to survive under the current circumstances.
Existing parks like Suan Siam are still able to operate
because they are well-established. They bought land when
prices were low. Even so, most remain in the red. For
instance, Suan Siam has suffered losses for 20 years in a
row, " Mr Chaiwat said.

Commenting on the fate of Magic Land, Mr Chaiwat said he
had sympathy with both operator and land owner.  The
operator needs at least 10 years to break even upon renewal
of the contract.

"It's a pity to see the Magic Land sink into oblivion. The
park is among a few stand-alones available in Thailand.
With its departure, people have fewer choices and all the
fun of the business is likely to evaporate," Mr Chaiwat
said.

There are only three stand-alone amusement parks in
Thailand-Magic Land, Suan Siam and Dream World. The others
are leisure parks including Safari World, Crocodile Farm
and Si Racha Tiger Zoo.  While the stand-alone parks are
being squeezed, indoor amusement parks have flourished in
terms of numbers over the past five years, particularly in
department stores.

But Mr Chaiwat and Mr Amphol do not think the indoor parks
are a threat to the future of the stand-alone amusement
park business.  They view indoor parks as part of the
department stores' strategy to boost the number of
shoppers.  Visitors to indoor parks only spend one or two
hours, on average, playing with the equipment.  But
visitors to stand-alone parks spend more, normally visiting
a park two or three times a year and often spending a whole
day in the park.

"There is no brand loyalty in this business. People can
visit any park at their convenience. We don't believe the
proliferation of indoor parks leads to the decreasing
number of visitors to stand-alone parks. Instead, it will
help stimulate the amusement park business as a whole,"
said Mr Amphol.

Apichart Assavapokee, senior vice-president of the
merchandising division, The Mall Group, said families today
tend to favour having fun at indoor parks in shopping
complexes because all the family members' needs could be
fulfilled.  He said five of The Mall's six branches house
water and amusement parks. Revenue from these entertainment
services was growing satisfactorily.

In the case of water parks, with children as target
customers, the revenue has expanded by around 200% since
1997.  For amusement parks, targeting children and teens,
business has grown by 125% in the same period.  Mr Apichart
said amusement parks have seen smaller revenue growth
partly because of the short-lived popularity of the rides
and games available.  Most teenagers get easily bored with
existing pieces of equipment and want to play with new
ones.

"People appear to like going shopping when they have spare
time. Any department stores that can serve all their
needs will gain an advantage," Mr Apichart said.

He conceded that water and amusement parks require a lot of
investment but are unlikely to bring handsome profits.
Future Park Rangsit, another giant shopping centre, plans
to open an amusement park in its complex area in the next
few months.  Pimpaka Wanglee, director of sales at Rangsit
Plaza Co, operator of the complex, said Future Park Rangsit
had planned to invest billions of baht in establishing a
giant amusement park.  But it had to shelve the plan
because of disagreements among some major shareholders.

The company now plans to set up "Future Planet", a
development covering an area of 8,000 square metres within
the Future Park Rangsit complex.  It will contain an
entertainment complex for children and teenagers, with
education activities and games to enhance their knowledge.

Despite the amusement park business being squeezed at the
moment, Mr Chaiwat, as president of the Thai Amusement and
Leisure Parks Association, expressed optimism about the
future of the business.  He said the number of foreign
visitors to the parks would increase in the next three
years.  Foreign tourists spend on average between 5,000 and
7,000 baht each when they visit the parks.

Mr Chaiwat added that the number of existing parks in
Thailand is very small when compared with other countries.
(Bangkok Post  08-Feb-2000)

ROBINSON DEPT.STORE: In negotiations with creditors
---------------------------------------------------
In response to news of its debt restructuring, Robinson
Department Store said it was still negotiating and
finalising with creditors the terms of the debt
restructuring plan, including its shareholding structure
after the restructuring.  (Bangkok Post  08-Feb-2000)

SRITHAI SUPERWARE: SET has rehab plan
-------------------------------------
Srithai Superware said that on Dec 30 last year, court
approval was given for the company's rehabilitation plan
and SGV-Na Thalang & Co was appointed plan administrator.
The plan was submitted to the SET on Jan 14.

An addendum had been lodged summarising the rehabilitation
plan. It consists of management financial projections for
1999-2006. The projections indicate that Srithai will
generate significant free cashflow throughout the period.
Its management projects an overall growth in business, with
sales increasing steadily. The estimated net loss of 853
million baht for 1999 included forex losses.

The net profit of 390m baht forecast for 2000 was because
of the gain on the transfer of assets to Holdco. The
company forecasts net losses of 91m baht in 2001, 35m baht
in 2002 and 19m baht in 2003, after which it forecast a net
profit of 8m baht in 2004, 88m baht in 2005 and 161m baht
in 2006.  (Bangkok Post  08-Feb-2000)

SUBMICRON TECHNOLOGY PLC: Joint investment memo near done
---------------------------------------------------------
The fate of Submicron Technology Plc and Charn Uswachoke
will be decided this month by a group of investors invited
by Mr Charn to become the company's partners.

Mr Charn, chief executive of Submicron and founder of its
parent company, Alphatec Electronics, has until June 4 to
resolve debts with creditors or be declared bankrupt. Mr
Charn said yesterday that the Bank of America, Submicron's
adviser, was drafting a memorandum for joint investment
between the company and new partners to revive the firm's
plan to build a computer wafer factory.

"The draft is expected to be completed by mid-February for
presentation to the investors," Mr Charn said, adding he
had been negotiating with groups from Germany, Japan,
Taiwan and the United States, who would decide this month
whether they would team up with Submicron.

He said the company's creditors had nothing to lose as
Submicron would not ask them to take a loss on their loans,
or for more money.  "If the potential investors agree to
participate in the project, they will inject fresh funds
into the company and the project can take off," he said.

He denied that the creditors had decided to ask the court
to declare him and the company bankrupt regardless. The
creditor banks had reportedly assumed the project was not
viable because the company's machinery was out of date. But
the company had not yet bought machinery, he said. "After
we get fresh funds from the new partners, we will decide
where to purchase the technology."

Submicron owes several creditor banks a total of 19 billion
baht. Last month, the Central Bankruptcy Court placed the
company in receivership after it lost a bankruptcy case
filed by Siam City Bank, one of its creditors.

A source at the Legal Executions Department said the
court's order on the case and would be announced mid-
February, with publication in the Royal Gazette set for
April 4.  One creditor expressed scepticism about
Submicron's viability and its prospects if the state
refused to take a stake in the wafer fabrication plant.

"However, if some new partners can be found, and a
reasonable restructuring plan is drafted, the banks are
willing to talk, at least until the bankruptcy process is
complete," he said. (Bangkok Post  08-Feb-2000)

THAI AMARIT BREWERY: Rehab plan approved
----------------------------------------
The Central Bankruptcy Court has approved a debt-
restructuring and business rehabilitation plan for Thai
Amarit Brewery Co, the Kloster Beer brewer who owes its
creditor banks around Bt3.26 billion.

The court reached the decision after considering the
troubled brewer's rehabilitation plan it received from
Bangkok Bank last month.  The bank, which oversees Bt3.08
billion, or around 94 per cent, of the company's total
debts, is effectively the de facto creditor of the brewery
business controlled by the Tejaphaibul family.  Thai Amarit
also brews Black Tiger, one of the newest additions to
Thailand's beer market.

A recent conflict has arisen between the bank and the
brewery's management, with the financial institution
preferring that PricewaterhouseCoopers formulate the debt-
restructuring plan, as opposed to the management's choice
of leaving the responsibility to the shareholders.

As the conflict simmered with no resolution in sight,
Bangkok Bank opted to ease the Corporate Debt-Restructuring
Advisory Committee, a panel set up to mediate restructuring
plans between debtors and creditors, of the burden of
trying to forge an agreement.  Instead, the bank decided to
hand the case to the Central Bankruptcy Court in search of
a speedy approval.

Chokechai Niljianskul, a consultant at Linklaters
(Thailand) Ltd, which advises the creditor banks, said the
banks insisted on appointing PricewaterhouseCoopers as the
financial adviser for this case.  He said the court had
appointed Legal Execution Department officials to
temporarily regulate the debt-restructuring plan until the
creditor banks could come up with a final plan over the
next month.

"We don't think there will be a problem because the plan
only needs two-thirds of voting support. The vote from
Bangkok Bank alone is more than enough to support the
plan," Chokechai said.

After the formal appointment of PricewaterhouseCoopers, he
added, the creditor banks and the debtor would take the
plan through a legal process that was expected to be
completed within six months.  According to Adul
Trangsattayapirom, a consultant at Wang Pechaboon Co Ltd,
which represents Thai Amarit Brewery, the debt-
restructuring plan would see the company increase its
capital from Bt250 million to Bt600 million. He said the
Tejaphaibul family would inject their own funds into the
recapitalisation scheme to maintain their ownership
structure.  The debtor would also like to extend the debt
repayment period to five years, Adul said.

"However, if the plan is placed in the Bankruptcy Court for
deliberation, we have to start all over again. But I doubt
if the main ingredients of the plan will be drastically
changed from the one originally put forward," he said.
(The Nation  08-Feb-2000)


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

Troubled Company Reporter -- Asia Pacific is a daily
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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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