/raid1/www/Hosts/bankrupt/TCRAP_Public/000211.MBX      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

            Friday, February 11, 2000, Vol. 3, No. 30

                                   Headlines


* C H I N A  &  H O N G  K O N G *

CIMB SECURITIES: SFC reprimands for flouting rules
PETROCHINA CO: Listing, money-raising delayed
WIN SUCCESSFUL SECURITIES: Staff faces lawsuit
163.net: Probe begins into sale of Chinese Web site


* I N D O N E S I A *

PT ASTRA INT'L: IBRA proceeds with sale plan
PT ASTRA INT'L: Shareholders approve rights issue
TEXMACO GROUP: BNI shifts 9.7T rupiah Texmaco debts to Ibra


* J A P A N *

LONG-TERM CREDIT BANK: To open with foreign owners Mar.2
TOMEN CORP.: To cease aircraft leasing in restructure
TOMEN CORP.: Seeking tie-up with Toyota Tsusho in rehab


* K O R E A *

DAEHAN INVESTMENT CO.: FSS to investigate
DAEWOO GROUP: Bond rush worries ease, redemptions drop
KOREAN INVESTMENT TRUST CO.: FSS to investigate


* M A L A Y S I A *

TECHNOLOGY RESOURCES INDUS.: Close to bondholder deal


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

BW RESOURCES CORP.: PSE governors discuss BW probe
BW RESOURCES CORP.: PSE submits probe findings to SEC
INT'L CONTAINER TERMINAL SVCS.: Threatens deal pull-out
PDCP BANK: Incurs P1-B loss
PHILIPPINE NAT.BANK: Bad loan ratio 'severely understated'
RURAL BANK OF SAN MIGUEL: BSP files charges vs. bank execs
UNIWIDE GROUP: Will need support of trade suppliers


* S I N G A P O R E *

MEDIA CORP.OF SINGAPORE:Subsidiary chief quits,revamp ahead


* T H A I L A N D *

BANGKOK METROPOLITAN BANK: HSBC to win bidding
ITV Plc: Rift over debt-equity swap
LAM SOON: Major shareholders oppose capital increase
ROBINSON DEPT.STORE: To file debt plan
SIAM CENTRE: Plans B20-30m renovation, revamp
THAI PETROCHEMICAL INDUS.: Wrestling with creditors


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

CIMB SECURITIES: SFC reprimands for flouting rules
--------------------------------------------------
The Hong Kong unit of Malaysia's CIMB Securities may have
flouted securities laws here time and again but all it got
was a rap on the knuckles yesterday following months of
investigations.  CIMB Securities (Hongkong) Ltd was
publicly reprimanded by the Securities and Futures
Commission for contravening liquidity requirements, window-
dressing its books, and failing to follow proper reporting
standards.

SFC said that following an inquiry, it concluded that CIMB
Hongkong had breached securities laws here repeatedly. The
company was found to have contravened the liquid capital
requirement under Financial Resources Rules (FRR) and
window-dressed its financial position for the period
between Jan 2 and Nov 19, 1998.

It was also found to have failed to report a drop in its
liquid capital below the required amount and its inability
to comply with the FRR.  It also failed to place house
money into a designated trust account, and broke Hongkong's
securities codes further by keeping all accounting records
and most of the records in relation to the trading of
Malaysian stocks in Malaysia.

CIMB Hongkong was trading Malaysian stocks in Hongkong, and
was required to keep a full record of its trading records
in Hongkong since the trading originated from the
territory.  SFC said the company had failed to maintain
adequate "internal control, operations and compliance
systems."

Both the company and its Hongkong-based securities dealer,
Lee Siew Bee, were publicly reprimanded.  CIMB Hongkong
has, since June 1 last year, voluntarily suspended trading.
It does not intend to resume trading until it has put in
more checks and balances as recommended by an independent
auditor.

Its parent has also instituted management changes in
Malaysia, replacing its former accounts and administration
manager, whom the SFC concluded was primarily responsible
for the breaches.  CIMB Securities is one of Malaysia's
larger brokerages and is part of listed Commerce Asset
Holdings Bhd.

This is not the first time that CIMB has run afoul of
regulators. In December 1997, in what was viewed as an
unprecedented move, CIMB and its client Credit Lyonnaise
Securities Asia were charged for short-selling stocks
listed on the Kuala Lumpur Stock Exchange. They were
alleged to have committed the offences shortly before
short-selling was banned in September 1997 when the
Malaysian stockmarket first started to collapse, during the
first few months of Asia's financial crisis. (Singapore
Business Times  10-Feb-2000)

PETROCHINA CO: Listing, money-raising delayed
---------------------------------------------
PetroChina Co. is set to unveil details of a massive
privatization, even as its planned overseas stock listing
is being hampered by a protracted regulatory review in the
U.S. and a human0-rights campaing that has already
succeeded in turning off one major potential investor.

Those involved in taking the new oil company public will
begin publishing detailed analyses of the company and
testing investors' interest in small meetings as early as
today, before embarking on an internatoinal roadshow either
later this month or early March. That means PetroChina is
starting to push its issue before the U.S. securities and
Exchange Commission has finished its review of the listing.

The quiet sell job, which is legal in the U.S., underscores
the company's eagerness to be listed there and in Hong Kong
as quickly as possible.  One reason PetroChina wants a
speedy listing is that it has pressing needs for the $5
billion in cash it hopes to raiseon the New York and Hong
Kong stock markets.

PetroChina, which will rank as the world's fift-largest oil
company int erms of crude reserves, plans to expand oil
operations, pay $15 billion in debt and support more than a
one million workers who are retiring or being laid off.
PetroChina's bosses in Beijing are also eager to see the
listing succeed because it would set the stage for other
capital hungry Chinese state companies to float stock to
foreign investors.

Moving ahead with PetroChina's stock promotion may also
help deflect negative publicity from an anti-investment
campaign that has claimed at least one early victory.
Criticism of the company by human-rights groups has caused
the giant California Public Employees Retirement System, or
Calpers, to lose interest, Calpers officials say.

After asking its investment advisers what they thought of
investing in PetroChina, Calpers told the California
legislature's audit committee that most "generally indicate
that the company will not be considered as part of their
investment strategy." One of Calpers's managers, Normura
Asset Management, said it wouldn't invest in PetroChina
because its parent company, China National Petroleum Corp.,
or CNPC, is involved in a politically sensitive project in
Sudan.

"Given the basic nature of public pension funds and given
Calpers' status as a public pension fund, we prefer to hold
off on buying PetroChina," the Japanese firm said it its
submission to the Sacramento based fund.

Activists have sought to alert investors to CNPC's
involvement in Sudan, a country subject to U.S. trade
sanctions because of a poor human-rights record. In
response to a poor human-rights record. IN response to a
letter from the U.S. Committee on Refugees, a Washington-
based humanitarian organization, the SEC said it intends to
"thoroughly review" PetroChina's registration statement to
ensure that investors know exactly how the proceeds of the
listing will be spent by the company. (The Asian Wall
Street Journal  09-Feb-2000)

WIN SUCCESSFUL SECURITIES: Staff faces lawsuit
----------------------------------------------
Directors and staff at Win Successful Securities have been
slapped with a $70 million lawsuit accusing them of forging
client records and accounts to carry out illicit trades.

The company, now in provisional liquidation, has filed a
writ in which it is seeking $70 million, the value of
securities due to clients that are no longer in the
possession of the brokerage.  Three directors and two
senior staff named in the writ allegedly made bogus
accounting, client and securities trading records.

Moreover, statements and reports given to clients to show
securities held on their behalf by the brokerage were
doctored by the five, according to the writ. The defendants
in the writ are directors Albert Au Wai-man, Paul Lam Sung-
yin and Tsang Chun-kit along with employees Sam Tsang Fook-
wan and Tommy Kwok Pun-tun.

All the defendants dealt in clients' securities without a
shred of authority to do so, the writ said.  They also
allegedly embarked in illicit speculation and trading in
securities by using company funds.

Win Successful collapsed last month amid accusations
clients' assets had been pilfered.  Provisional liquidators
from PricewaterhouseCoopers (PWC) were appointed by the
High Court last month.

Scores of clients have filed reports with police, claiming
they had been deceived by the brokerage.  Some employees
were arrested by the Commercial Crime Bureau, among them Mr
Au. No charges have been laid.  Win Successful is now
unable to return securities to the clients, the writ said,
and the company is unable to continue its business.

Paul Lam, a director, also owes the company more than $1
million, the writ says.  The company will moreover suffer
further loss in the form of claims to be made by clients in
respect of securities purportedly held on their behalf by
Win Successful, the writ said.  Damages are being claimed
by Win Successful against the five defendants, along with
$70 million, all necessary accounts and inquiries, interest
and costs.

Preliminary investigations by PWC showed the company had
about 300 clients.  The exchange has invited claims from
investors for redress under the Unified Exchange
Compensation Fund, a move which could rekindle debate over
the $8 million cap on claims by clients of a collapsed
brokerage. (South China Morning Post  10-Feb-2000)

163.net: Probe begins into sale of Chinese Web site
---------------------------------------------------
An investigation has been launched following the sale of
one of China's most popular websites at what critics say
was a fraction of its value, the official Laodong Daily
reported yesterday.

The site, named 163.net, was technically a state asset, as
its former owner, Feihua Company, is a subsidiary of the
Guangzhou Municipal Telecommunications Bureau.  Chairman
Zhang Jinjun, who was also a sub-bureau director with the
telecoms bureau, has already been dismissed over the affair
and is being investigated for possible irregularities in
connection with the sale, the newspaper said.

A company identified as Xinfeiwang, or "New Flight Net,"
acquired 163.net for just 50 million yuan (US$6 million) on
December 15 under Zhang's supervision, it said.  But
Internet industry insiders say the e-post office site's
brand name and customer base in China would make its market
value several times higher.

The government-run China Internet Network Information
Center (CNNIC) recently ranked it as the country's number-
four website after portals Sina.com, Netease.com and
Sohu.com.  A counter displayed on 163.net shows more than
72 million hits since March 1998.

Wang Xianxian, the buyer, told the newspaper he was an
executive director with US investment bank Goldman Sachs
Asia but described the Xinfeiwang as his own private
investment.  He said he directs the firm from Hong Kong,
his primary place of residence, although he is from the
mainland.

Main executives from Feihua have been poached to work for
Xinfeiwang, Wang said.  Sale of state assets is a highly
sensitive issue in China, where innumerable local officials
have taken advantage of reforms to cut corrupt deals and
enrich themselves. (Business World  09-Feb-2000)


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

PT ASTRA INT'L: IBRA proceeds with sale plan
--------------------------------------------
The Indonesian Bank Restructuring Agency moved closer to
selling its shares in Indonesian auto maker PT Astra
International, and meeting its target of 17 trillion rupiah
($2.24 billion) in asset sales by March 31.

Astra shares also ended higher Monday after the company's
chief executive, Rini Soewandi, softened her opposition to
the IBRA's plans to remove her sell its 45% shareholding in
the company to the highest bidder.  Astra closed up 125
rupiah, or 3.4%, at 3,825 rupiah on expectations that the
winning bidder will pay more than the previous floor price
of 3,750 rupiah a share.

The specualation was stoked by IBRA Chairman Cacuk
Sudarijanto, who said Monday he expects the price for the
stake to be set at 4,000 rupiah a share.  Mr. Cacuk said
IBRA has raised 10.5 trillion rupiah as of Monday from
asset sales in the current financial year and was confident
of meeting its target with the sale of Astra and an initial
public offering for PT Bank Central Asia.
i
Ms. Rini told reporters she had obstructed the IBRA's
efforts to sell that stake to a consortium led by Newbridge
Capital Ltd. and Gilbert Global Equity Partners of the U.S.
because the deal wasn't transparent.  Astra shareholders
will vote today at a general meeting on the IBRA's proposal
to reshuffle senior management and cancel a planned rights
issue seen as dilutive for shareholders.

Ms. Rini said she would accept the results of the vote,
which looks likely to go against her management team
despite its track record in restructuring the company's
debt and returning it to profitability.

The meeting has become a test of will both for the IBRA,
which last year proved vulnerable to political meddling
over the high-profile Bank Bali case, and for Mr. Cacuk,
the new chairman brought in by President Abdurrahman Wahid
last month.  The iBRA's efforts to sell the Astra stake had
been thwarted by what it viewed as the Astra management's
opposition to a plan to sell to the Newbridge-led group.

Ousting Ms. Rini and forcing through the stake sale would
signal that the agency, which controls assets with a book
value of 600 trillion rupiah, isn't afraid to flex its
muscle against vested interest, analysts said.

The agency owns the Astra stake through a settlement with
former bank owners in return for liquidity given to their
banks during the height of the currency crisis.

Last December, the IBRA named the Newbridge group as the
preferred bidder under an exclusivity agreement that gave
it the right to conduct due diligence on Astra and then
match any bids by other investors during a second round of
bidding.  The agreement fell apart last week, however,
after Newbridge failed to put up a 30 downpayment for the
stake into an escrow account, opening the way for a second
round of open bidding.

Mr. Cacuk said the iBRA had since received five bids for
its shareholding and was on track to complete the sale by
March 25. (The Asian Wall Street Journal  08-Feb-2000)

PT ASTRA INT'L: Shareholders approve rights issue
-------------------------------------------------
Indonesia's largest carmaker PT Astra International said
yesterday that 92 percent of its shareholders had approved
a planned rights issue at an extraordinary general meeting
(EGM).

Astra also said the EGM had approved the appointment of
former company president, Theodore "Teddy" P. Rachmat as
president to replace Rini Suwandi.  In a statement, Astra
said the EGM also approved a plan to replace finance
director Dorrys Herlambang, but did not name a new official
to the post.

The statement said Astra would need around 1.1 trillion
rupiah ($147 million) rupiah this year, partly for debt
repayment. Astra, it said, will continue its asset sale
program until 2002, planning to raise 3 trillion rupiah
over the three years.

It said the company is in negotiations to divest its stakes
in joint ventures with Honda Motor and Isuzu Motors and in
PT Pramindo Ikat.  Astra said the EGM decided to retain
vice president Budi Setyadharma, and directors Rudyanto
Hardjanto, Himawan Surya, Michael Dharmawan Ruslim, Dany
Walla and Hagianto Komala in their posts.

A company source told AFX-ASIA, an AFP financial affiliate,
that Michael Dharmawan Ruslim would probably replace
Herlambang.  The statement said the EGM also appointed as
new commissioners Sri Mulyani Indrawati, Mahmudin Jasin, R.
Sumantri and Mardi Sutanto.

The statement did not provide biographical details of the
new commissioners nor say if they had replaced incumbent
members of the board of commissioners.  Astra shares were
lower in afternoon trade on the Jakarta Stock Exchange
after the EGM results were made known.  Shortly before the
close, Astra was down 25 rupiah at 2,800, off a high of
3,950.

Bakrie Securities dealer Denny Riyadi said he thought "some
investors are actually more worried about the approval off
the rights issue" than the replacement of Suwandi.
Riayadi said he believed investors may want to offload
their positions in Astra ahead of the rights issue, adding
"there is no strong reasons to believe that Astra's share
price will continue to go up."

However, he said the successful sale of the Indonesian Bank
Restructuring Agency's 45 percent stake in Astra could
spark interest in the stock once more. Speaking to
reporters at a hastily called press conference on Tuesday,
Soewandi brushed aside recent allegations that she was
plotting a management revolt and declared that Astra would
cooperate with any foreign investor who bought up the 45
per cent shares in the company currently under Ibra's
control.

Soewandi also released to the media an open letter to
President Abdurrahman Wahid in which she stated that Astra
supports the efforts of the government to raise much needed
revenue from the sale of corporate assets under Ibra's
control.

This process is critical to Indonesia's overall economic
recovery process. Ibra, which currently controls an
estimated 600 trillion rupiah worth of corporate assets,
last month called for an extraordinary shareholders meeting
to remove Soewandi for allegedly blocking the sale of the
45 percent stake to a consortium headed by US-based
investment firms Newbridge Capital and Gilbert Global
Equity Partners (GGEP).

"Reports that we have not been cooperating with Ibra are
totally false but we believe that certain procedures have
to be followed to protect shareholders' interests,."
Soewandi said on Tuesday.

Her comments also followed a rebuke from Abdurrahman, who
is currently on a 16-day visit to Europe and Asian
countries.  (AFP; Business Times; Business Day  09-Feb-
2000)

TEXMACO GROUP: BNI shifts 9.7T rupiah Texmaco debts to Ibra
-----------------------------------------------------------
PT Bank Negara Indonesia (BNI), the largest publicly traded
state bank, has transferred 9.7 trillion rupiah (S$2.2
billion) in debts owed by the Texmaco Group, Indonesia's
largest textile firm, to the bank rescue agency.

The loans should have been transferred to the Indonesian
Bank Restructuring Agency (Ibra) earlier under a government
recapitalisation programme requiring banks to transfer all
their bad loans to the agency. BNI said the debt was only
classified as doubtful.

The Texmaco debt is part of 19.1 trillion rupiah in bad
loans that BNI has now transferred to the agency. The rest
is owed by small and mid-sized borrowers, BNI said in a
statement to the Jakarta Stock Exchange.

In November, State Enterprises Minister Laksamana Sukardi
took the lid off a scandal that Texmaco had received
special treatment from the central bank on the orders of
former president Suharto, allowing the state banks to
break limits to single borrowers. Texmaco denies any wrong-
doing.

Last month, the government closed Texmaco's PT Bank Putera
Multikarsa -- which suffered a deposit run in the wake of
the scandal.  The government found that the bank had 80 per
cent non-performing loans and wouldn't be able to recover
its financial performance. Bank Putera's capital adequacy
ratio -- the ratio between a bank's capital and its risk
weighted assets -- stood at negative 48 per cent, far below
the requirement of 4 per cent. (Singapore Business Times
10-Feb-2000)


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

LONG-TERM CREDIT BANK: To open with foreign owners Mar.2
--------------------------------------------------------
"The new LTCB will be able to start its business on March
2," a government official said. Masamoto Yashiro, the head
of New LTCB and a former chairman of Citibank N.A., the
Japanese arm of Citigroup, told a news conference the new
bank aimed to achieve a net operating profit of 50 billion
yen within two years of its start.

Japan formally pulled down barriers to its domestic banking
industry with a decision to allow a foreign consortium, led
by US investment group Ripplewood Holdings, to take over a
failed crown jewel, the Long-Term Credit Bank of Japan
(LTCB).

Government officials said they hoped the first foreign
takeover of a major Japanese bank, approved by regulators
yesterday morning, would help spur improvements in the
beleaguered banking industry.

"In finance, the US is ahead in technology and products,
and Japan is trying to learn from that," Finance Minister
Kiichi Miyazawa told a news conference.

"The sale of LTCB will bring in new technology, and this
will good for Japan's economy."LTCB, which collapsed under
the weight of bad loans made during an asset-price bubble a
decade ago, was placed under state control in October 1998
for rehabilitation and resale.

Last September the government gave priority rights to a
Ripplewood-led consortium, called New LTCB Partners, in
negotiations on the LTCB takeover, but a final agreement
was slow in coming as the two sides worked through the
details.

Under the final deal signed with the government's Deposit
Insurance Corp (DIC), the Ripplewood consortium will pay
one billion yen ($9.14 million) to purchase about 2.4
billion LTCB common shares from the DIC on March 1.
The consortium will pay an additional 120 billion yen for
300 million new common shares in LTCB, while the government
agreed to inject 240 billion yen in public funds to bolster
LTCB's capital base.

The government said last September it had already spend 3.6
trillion yen in taxpayers' money to balance LTCB's books.
(Bangkok Post  10-Feb-2000)

TOMEN CORP.: To cease aircraft leasing in restructure
-----------------------------------------------------
After asking five banks to forgive its debts totaling 200
billion yen a day earlier, Tomen Corp. (8003) decided
Wednesday to pull out of the aircraft-leasing business and
shore up a group firm's food business to improve
consolidated earnings, The Nihon Keizai Shimbun has
learned.

By pursing restructuring efforts more vigorously, the
nation's seventh-largest general trading house hopes to
tally a group pretax profit of 35 billion yen in the fiscal
year ending March 2003, as opposed to the 14.5 billion yen
profit posted in fiscal 1998.

Tomen generated about 7 billion yen in revenue in fiscal
1998 from the leasing of helicopters and small aircraft to
corporate customers. But the company will hand over the
operation to an affiliate before the current fiscal year
ends March 31, aiming to put its financial resources to
more effective use elsewhere.

Under the latest restructuring plan, the company will
require each division to generate an annual pretax profit
of 300 million yen and each section to rack up a profit of
100 million yen. If they fail to achieve those targets,
Tomen will shut them down.  The company is already
preparing to shift its lumber, textile machinery, and pulp
and paper operations to subsidiaries. (Nikkei  10-Feb-2000)

TOMEN CORP.: Seeking tie-up with Toyota Tsusho in rehab
-------------------------------------------------------
Tomen Corp. (8003) is planning a series of restructuring
initiatives, including possible tie-ups with outside
companies, in an effort to prop up its faltering finances,
company sources said.

The Osaka-based general trading company has started talks
with Toyota Tsusho Corp. (8015), the trading unit of the
Toyota Motor Corp. (7203) group, on joint marketing of
electronic components, the sources said.

Tomen will also spin off its power generation operations by
the end of fiscal 2000, soliciting capital participation
from nongroup companies.  The new round of restructuring
efforts follows a request Tomen made to its main bank Tokai
Bank (8321) and other creditors to waive debts totaling 200
billion yen.

Tomen and Toyota Tsusho have agreed to explore business
areas where they can supplement each other's operations in
the electronics/information fields. Tomen is discussing
plans to sell electronic components and semiconductors to
Toyota Tsusho's major customers, including Toyota Motor.

For its domestic and international electricity operations,
Tomen plans to set up a new company to take over the
operations from its parent. Tomen will sell part of the
stake held by the parent to outside firms, targeting
domestic and foreign companies in the power sector, by the
end of March 2001.

The trading company aims to use the proceeds from the stock
sale to fund restructuring steps.  Tomen hopes the new
power company will go public during the business year
starting April 2001.

In its restructuring program, which includes the request
for the debt waiver, Tomen aims to generate a total of 15.4
billion yen by the end of fiscal 2002 by listing the shares
of affiliated firms. The plan to list the power business
operations and sale of a stake in the business is expected
to account for 12 billion yen of the total. (Nikkei  09-
Feb-2000)


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

DAEHAN INVESTMENT CO.: FSS to investigate
KOREAN INVESTMENT TRUST CO.: FSS to investigate
-----------------------------------------------
The Financial Supervisory Service (FSS) announced Wednesday
that it will conduct a thorough investigation into the
operations of Daehan Investment Trust Company (DITC) and
Korea Investment Trust Company (KITC) over the first half
of the year.

The agency will focus its probe on poor investment
decisions by current and former executives. A spokesperson
for FSS said that the investigations will take place as
soon as the financial market is stabilized, but considering
the effect they could have on the market, they will take
the form of intensified periodic inspections.  (Digital
Chosun  09-Feb-2000)

DAEWOO GROUP: Bond rush worries ease, redemptions drop
------------------------------------------------------
Fears of a rush on Daewoo bond redemptions prompted by
Tuesday's full opening of the 95% redemption rate to all
investors have proven to be unfounded, with redemptions
leveling off Wednesday to W947.3 billion.

The Financial Supervisory Commission (FSC) said Wednesday
that the day's tally was reported by the nation's nine
major investment trust and securities firms at 2 p.m. The
figure is just one-third the amount that had been redeemed
as of the same time yesterday.

Institutional investors cashed in Daewoo bonds amounting to
just W367.2 billion, in contrast to the W5 trillion they
redeemed yesterday. Individual investors cashed in W580.1
billion worth of the bonds, the lowest since February 2,
when they were first able to cash in their Daewoo bonds at
the 95% rate.

The FSC said a total of W22.11 trillion in bonds have been
cashed over the last four business days between February 2-
8, but that W14.4 trillion has been reinvested, making for
a net cash-out of W7.7 trillion. The FSC added that
reinvestment has been centered on short-term investments
like money-market funds. (Digital Chosun  09-Feb-2000)


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

TECHNOLOGY RESOURCES INDUS.: Close to bondholder deal
-----------------------------------------------------
Malaysia's Technology Resources Industries Bhd (TRI) is
close to reaching an agreement with bondholders after it
defaulted on bond payments of US$531 million (S$900.3
million) last year.

Asked if TRI was close to a deal with bondholders, group
executive vice-president Wan Aishah Wan Hamid said "Yes, I
would think so, very soon. I think we are doing a very
amicable negotiation with bondholders."
(Singapore Business Times  10-Feb-2000)


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

BW RESOURCES CORP.: PSE governors discuss BW probe
--------------------------------------------------
A report on the findings of a committee that looked into
suspected fraudulent activity behind the unusual price
surges last year in the stock of gaming firm BW Resources
Corp. is now with the Philippine Stock Exchange (PSE)
governors.

The report was presented by the PSE's Compliance and
Surveillance Group (CSG) during a meeting yesterday that
lasted until early last night.

PSE officials, including president Jose Luis Yulo, Jr.,
refused to discuss details, but a BusinessWorld source said
the report did not include "conclusions and
recommendations" on what possible sanctions would be meted
on the erring parties. PSE chairperson Trinidad Kalaw said
the report was "not yet finished."

The meeting, the first for the PSE board of governors this
month, lasted for six hours, with some of the officials
claiming that the discussions dealt with "procedures" on
how the investigation was conducted.

"They're there for support," Mrs. Kalaw said when asked why
the staff of CSG, which conducted the investigation, was
present in the meeting.  "We're talking about the
Philippine Stock Exchange and the future of the Philippine
economy," she said when asked why the meeting took six
hours.

The suspected rigging of stock price movements in BW
Resources last year put the local stock market under a dark
cloud, and foreign investors reportedly turned aloof
subsequently.  The Philippine market was a laggard last
year, while other Asian exchanges roared ahead on
expectations of sustained overall recovery in the region
after the 1997-98 economic crisis.

The PSE will now turn over the report -- if the board finds
it satisfactory -- to the Securities and Exchange
Commission (SEC). The SEC will then start its own
investigation into the issue. It will have one month to
conduct its own probe.  An SEC official, speaking on the
condition of anonymity, said the Senate Committee on Banks,
Financial Institutions and Currencies has given the
commission until March 10 to verify the report which the
PSE promised to submit today.

Throughout the afternoon yesterday, from the gallery of the
PSE Plaza in Ayala Tower I, BusinessWorld noted the CSG
staff huddled in a separate room, waiting to be called by
the bourse governors.  In the PSE boardroom, all 12
governors were in attendance, including Federico Lim,
president of Belson Securities, Inc. and uncle of BW
Resources president and director Eduardo Lim, Jr.

A PSE governor, emerging from the boardroom, confirmed Mr.
Lim's presence in the meeting which was discussing the BW
Resources issue.  But Mrs. Kalaw would neither confirm nor
deny the meeting was that of the Business Conduct and
Ethics Committee (BCEC), saying it was just the first
governors' meeting for February.

The PSE president, Mr. Yulo, on the other hand, said the
meeting was about "procedures of the investigation."

The stock market has been abuzz with talks that those
involved in the controversy may be pushing to candy-coat
the investigation, adding the investigating panel has been
receiving threats. Such rumors could not be immediately
confirmed, however.

A BusinessWorld source said a number of brokers linked to
members of the PSE board of governors had engaged in
questionable deals involving BW Resources.  Among the
possible violations noted were insider trading, breach of
the net capital rule or the requirement for brokers to
maintain at least a five-million Philippine peso ($0.124-
million at PhP40.463=$1) capital, breach of the broker-
director rule which prohibits a broker from being a
concurrent director of a listed company, "kiting" or the
temporary use of funds which influence the price of the
stock, and over-the-counter transactions.

Aside from businessman Dante Tan of Best World Gaming and
Entertainment Corp. and his associates, a number of brokers
were implicated in the controversy. BusinessWorld learned a
total of 46 brokers were probed by the CSG. These are A. T.
de Castro Securities Corp.; Angping & Associates
Securities, Inc.; All Asia Securities Management Corp.;
Asiasec Equities, Inc.; Aurora Securities Corp.; Bernad
Securities, Inc.; Belson Securities, Inc.; Abacus
Securities Corp.; Ansaldo,Godinez & Co., Inc.; Armstrong
Securities, Inc.; BA Securities, Inc.; DBS Securities
Phils., Inc.; Equitiworld Securities, Inc.; Fidelity
Securities, Inc.; Pryce Securities, Inc.; R. Nubla
Securities, Inc.; Sun Hung Kai Securities (Phils.), Inc.;
Triton Securities Corp.; Vickers Ballas Securities, Inc.;
UCPB Securities, Inc.; R. S. Lim and Co.; Rashid Hussain
Securities Phils., Inc.; Lopez, Locsin, Ledesma and Co.,
Inc.; Larrgo Securities Co., Inc.; Jaka Securities Corp.;
Highland Securities Phils., Inc.; Guild Securities, Inc.;
Goldstar Securities, Inc.; Quality Investment and
Securities Corp.; PCCI Securities Brokers Corp.; Multi
Grade Securities Corp.; Mandarin Securities Corp.; Mark
Securities Corp.; Eastern Securities Development Corp.;
Citisecurities, Inc.; Securities 2000, Inc.; Solar
Securities, Inc.; Wealth Securities, Inc.; Wise Securities,
Inc.; Meridian Securities, Inc.; New World Securities,
Inc.; Orion Squire Capital, Inc.; PCIB Securities, Inc.;
PJB Pacific Securities Phils., Inc.; PNB Securities, Inc.;
and Premium Securities, Inc.

Meanwhile, the SEC official said the Bureau of Internal
Revenue (BIR) may be tapped to expedite the commission's
verification process. "With the help of the BIR, we can get
the financial background of those who heavily traded BW
shares...if we have access to the person's financial
capability, then we can check if the person has enough
legitimate money to make such big transactions," the
official said.

At the same time, the SEC can check the income tax returns
(ITR) of the people who traded BW Resources shares. "The
ITRs can help us check the validity of the (BW)
transactions. If we find someone trading (BW) shares
amounting to, say, PhP10 million ($0.247 million) but whose
ITR reflects an annual income of PhP1 million ($0.025
million)...we would have to consider the reasons behind
such big transactions in contrast with the relatively small
income," the source said.

The SEC official also said the commission should set a
threshold on the value of trades to be reviewed. "It would
be a waste of time and it would be inefficient on our part
to go through (even) the small transactions.
A threshold of about PhP500,000 ($12,357) should be set,"
the official suggested.

Come March 10, the SEC should be able to decide and impose
administrative sanctions on individuals and brokerage firms
found guilty of violating rules on price manipulation.

Under the Revised Securities Act, administrative sanctions
include suspension or revocation of registration and
operation permit; a fine of not less than PhP200 ($4.94)
but not more than PhP50,000 ($1,237), and not more than
PhP500 ($12.37) for each day of continuing violation; and
disqualification from being an officer, member of the board
of directors or principal stockholder of an issue whose
securities are or is about to be registered.

Under the law, "the imposition of administrative sanctions
shall be without prejudice to the filing of criminal
charges against the individuals responsible for the
violation."

Earlier, SEC chairman Perfecto R. Yasay, Jr. said the
commission's probe will be kept "secret" to avoid the
"sensationalism and politics" that stalled the PSE's
investigation.

"I hope the PSE will not give a copy (of its report) to the
Senate. The preliminary reports we have been submitting (to
the Senate committee chaired by Sen. Raul Roco) have been
made public documents...which isn't good as it preempts the
result of our investigation," Mr. Yasay said. (Business
World  10-Feb-2000)

BW RESOURCES CORP.: PSE submits probe findings to SEC
-----------------------------------------------------
The Securities and Exchange Commission (SEC) will have one
month to validate the results of the investigation of the
Philippine Stock Exchange (PSE) on property and gaming firm
BW Resources Corp. (BW).

The PSE is scheduled to submit today the results of its
investigation to the SEC's prosecution and enforcement
department which will determine the accountability of
individuals allegedly involved in insider trading and stock
manipulation of BW shares.

SEC sources said that the corporate watchdog had committed
during the last hearing of the Senate committee on banks
and financial institutions to a deadline of March 10, or
one month after the PSE's submission of its report.

This is contrary to Yasay's earlier statement that the SEC
has no set deadline and hinted that because of the
controversy surrounding the BW issue, it could take years
for the SEC to complete its findings.

And while the SEC is bound by requirements of secrecy on
the BW report pending its own findings it can reproduce a
copy of the report and submit it to the Senate if required,
the sources added.  The sources said SEC can be compelled
by the Senate committee to furnish it a copy of the BW
report since it is conducting its own investigation in aid
of legislation.

Earlier, outgoing SEC chairman Perfecto Yasay Jr. said the
regulatory body is bound by its requirements of secrecy. He
said that not even the Office of the President and the
Department of Finance which has direct supervision over the
SEC, should be given a copy of the PSE report.

"With all due respect to the other agencies, the SEC cannot
reveal or give a copy of PSE's findings and
recommendations, otherwise we might as well close shop,"
Yasay said, adding SEC will only turn in copies to
Malaca¤ang and the DOF of the SEC's own findings on the BW
case.

Yasay said it is better if the BW report is no made public
as this will allow the SEC to conduct a thorough assessment
and validation of the PSE findings and, if necessary,
conduct more investigations, free of political pressure and
other outside influences.

He said it will be the SEC's findings that will prevail as
far as determining the accountability and liabilities of
parties concerned as well as in imposing fines and
sanctions and recommending the prosecution of guilty
parties in the regular courts.  However, the Senate can
uphold its own findings too.

"The Senate findings can prevail insofar as they can use
the results to insert necessary provisions to improve the
Revised Securities Act (of 1999), they could decide on
that."

After studying the PSE report, the SEC will determine and
make public the administrative sanctions it will impose,
including sending notices to all parties or agencies
concerned. If criminal charges are necessary, the SEC will
also make this public, and file the appropriate charges
under the supervision of the Department of Justice. In
turn, the regular courts will conduct their own preliminary
investigation to determine the propriety of issuing a
charge sheet. (The Philippine Star  10-Feb-2000)

INT'L CONTAINER TERMINAL SVCS.: Threatens deal pull-out
-------------------------------------------------------
Publicly listed port operator International Container
Terminal Services Inc. yesterday threatened to pull out of
the Port of Rosario project in Argentina, where it has so
far invested around P800 million ($20 million), due to a
serious labor conflict and the failure of the host
government to intervene in resolving the problem.

In a circular to stockbrokers dated Wednesday, Feb. 9,
2000, ICTSI said it was also considering to sue the Ente
Administrator Puerto Rosario (Enapro), the port
administrator, due to its failure to resolve the labor
conflict.

Shares of ICTSI dropped by 14.4 percent to P2.14 at the
Philippine Stock Exchange yesterday on the heels of news
about ICTSI's beleaguered investment in the Sta. Fe
province in Argentina.  The 30-year concession for the Port
of Rosario was awarded to ICTSI in June 1998 after which
the company incorporated Puerto Rosario S.A. (Prosa) to
manage the project.

"From the very start, local and national government
authorities gave assurances of cooperation for a smooth
turnover, specifically that industrial peace would be
maintained at the port," ICTSI said in a circular to
brokers.

ICTSI complained that in this case, no concrete action has
been taken by the police department, the local labor
secretariat, the prefecture and the former governor of Sta.
Fe and the Enapro to alleviate the situation.

"At this point, we had taken the entire situation to be
part and parcel of starting up the kind of business that we
are in. We had expected the normal start-up losses and
labor disputes arising from the implementation of
operational improvements," ICTSI said.  "However,
repercussions of the strikes were already starting to be
damaging and far-ranging and Prosa realized that the
situation was moving beyond the start-up stage. It had also
reached the limit in trying to start what should have been
a normal business enterprise," it said.

ICTSI said the loss of confidence from clients, an
extremely hostile working environment, extraordinary costs,
negligence on the part of government officials and the
resulting heavy losses have prompted Prosa to withhold
payment on its first canon as concessionaire due this
month.

It said Prosa was still hoping to be able to prod the
government to fulfill their obligations to provide a normal
working environment for the project. Otherwise, it said
several options were being considered, including writing
off the project and bringing Enapro to court.

"It is important to note that other port operators have
pulled out of a concession because of extraordinary
circumstances and lack of cooperation from the host
government," it said. "A recent example is the decision of
Europe Combined Terminals B V (ECT) Triesta to withdraw
from its management contract for the Molo VII Container
Terminal in Trieste, Italy after about two years of
acquiring the concession," it said. (Philippine Daily
Inquirer  10-Feb-2000)

PDCP BANK: Incurs P1-B loss
---------------------------
PDCP Bank, 35 percent owned by Metro Pacific Corp.,
reported a net loss of P1 billion in 1999 due to weak
lending and higher reserves for possible bad debts.

PDCP Bank said it set aside additional loan-loss provisions
totaling 313 million pesos at the end of last year, as part
of its initiatives to clean up its balance sheet. Such
initiatives, however, took their toll on the bank's bottom
line.

Nearly three years ago, the central bank ordered Philippine
commercial banks to set aside at least 2% of their
respective loan portfolios as loan-loss reserves to help
protect the asset quality of the industry against the
adverse effects of the 1997-1998 Asian financial crisis.

Credit portfolio fell 10 percent to P6.9 billion last year
from P7.7 billion in 1998 due to the banks' selective
lending policy. Gross interest income fell 48 percent year-
on-year, while deposits rose 26 percent to P10.4 billion.
(AFX-Asia; Sun Star, The Asian Wall Street Journal  09-Feb-
2000)

PHILIPPINE NAT.BANK: Bad loan ratio 'severely understated'
----------------------------------------------------------
Semiprivate Philippine National Bank (PNB) may have
"severely understated" the magnitude of its bad loans,
already among the highest in the industry last year.

Industry sources said the semiprivate bank's nonperforming
loan (NPL) ratio as of December 21 last year should have
been a staggering 40% of its total portfolio instead of the
29% it reported. The actual figure is almost three times
higher than the 14.61% industry average as of November last
year.

Sources said the actual magnitude of PNB's bad loans
problem was recently uncovered in a government-commissioned
audit by Price WaterhouseCoopers and Lehman Brothers. The
audit report, yet to be completed, is a prerequisite for
PNB's full privatization by next quarter.  Newly named PNB
president Feliciano L. Miranda, Jr. declined to comment on
the issue. He said all questions will be answered at a
press conference the major stockholders will "soon" hold.

"I would rather not comment... These questions will be
answered in the press conference," Mr. Miranda yesterday
told BusinessWorld.

An analyst from a foreign financial institution said a 40%
NPL level is "possible" in PNB's case. The bank has
significant exposures to big firms which encountered
financial difficulties from the 1997 economic crunch. Many
of the companies have yet to be restructure their loans
with the bank.

Another source said PNB may have incurred losses from some
of its dacion en pago or debt-for-asset swap deals.  One of
these deals is PNB's loan to Centennial City, Inc. (CCI),
which was originally $15.15 million, and secured by a
mortgage on the condominium units owned by CCI.

In its 1999 annual report, CCI said $3 million of the loans
was converted into pesos for 131.4 million Philippine pesos
(US$3.2 million at PhP40.463:US$1) in August 1998. The loan
became past due in the same month, "subject to a penalty of
12% per annum." CCI's debts to PNB thus ballooned to
PhP794.1 million ($19.6 million) as of August 31, 1999.

On November 16, 1999, CCI's board approved the exchange of
10 floors in BA Lepanto Building in Makati City as payment
for the PNB loan, with a dacion value of PhP599.5 million
($14.8 million), the annual report stated. With the deal,
CCI's debts to the bank as of August 31, 1999 were reduced
to PhP161.5 million ($4 million). The balance was converted
into a one-year loan. With the dacion, 90% of the penalty
charges or PhP81.1 million ($2 million0 were waived.

CCI will also have the "right to match the purchase offer
of third-party buyers at any time within two years from the
date of the effectivity of the dacion."   The source said
PNB got 10,200 square meters of the building as payment,
which was valued at PhP62,000 ($1,500) per square meter.
The source added PNB was expecting to recoup some of its
losses through the rental fees from building tenants.

"But they were caught unaware because tenants were moving
out to Philam Tower, where the rates are reportedly
cheaper," the source said.

Meanwhile, PNB may still be able to declare a net income
for end-1999 after a PhP7.3-billion ($180.4 million) loss
the previous year, thanks largely to the one-time sale of a
US unit.  Sources in the bank yesterday said the proceeds
from last year's sale of California-based subsidiary
Century Bank will only enter PNB's books end-1999.

PNB sold the unit for $42 million or around PhP1.7 billion,
using a PhP40:$1 conversion rate. The amount is considered
non-recurring income, and will enable PNB to avoid another
operating loss.  The sources said PNB officials
intentionally delayed the booking of the transaction,
anticipating dismal results from PNB's 1999 operations.

"They were already building up a buffer (against losses),"
one of the sources said. "This buffer will offset PNB's
losses and show a net income for the year, even if it's
only a little bit over break-even."

He said the marginal income for 1999 will help "sweeten"
the semiprivate bank's privatization prospects this year.
The National Government is scheduled to unload its
remaining 30% stake in the bank next quarter. (Business
World  10-Feb-2000)

RURAL BANK OF SAN MIGUEL: BSP files charges vs. bank execs
----------------------------------------------------------
The Monetary Board, the policy-making body of the Bangko
Sentral ng Pilipinas (BSP), approved yesterday the filing
of criminal charges against top officials of the Rural Bank
of San Miguel (Bulacan).

In a statement, the BSP said it filed with the Department
of Justice criminal charges of estafa and violation of
Section 83 of Republic Act No. 337, as amended by
Presidential Decree No. 1795, otherwise known as the
General Banking Act against Hilario P. Soriano, RBSM
president and director.

Other RBSM directors charged include Rosalinda Ilagan,
formerly branch manager and now director of the Bulacan-
based rural bank.  The court suit was an offshoot of recent
move of the Monetary Board to close RBSM for failure to
meet liabilities as the fell due. RSBM declared a bank
holiday on Jan. 4, 2000.

Based on affidavits and other documents supporting the
charges, it appears that Soriano indirectly obtained a
DOSRI (director, officer, shareholders and related
interests) loan of P15 million from RBSM under the account
of Virgilio Malang of San Miguel, Bulacan who denied having
any loan or liability with RSBM.

It also appeared that Ilagan pointed to Soriano as the
actual recipient of the loan proceeds and that the loan
remains unpaid until now.

According to a reliable source, this is the first of a
series of criminal charges that the BSP will file against
Soriano based on the examination of the books and
transactions of the RBSM which appear to violate central
bank laws.

Soriano was earlier charged by his brother Antonio Soriano
for estafa through falsification of documents involving
RSBM pending with the Regional Trial Court of Manila,
Branch XXVI.  The Securities and Exchange Commission, in
Case No. 4313, directed Hilario, to reconvey to his brother
Antonio, 1,531 common shares of RBSM.

An official of the Rural Bank Association of the
Philippines, in an earlier interview, said they are also
planning to file charges against the BSP for failure to
extend help to the bleeding rural bank. (The Philippine
Star  10-Feb-2000)

UNIWIDE GROUP: Will need support of trade suppliers
---------------------------------------------------
Sara Lee Philippines Inc. -- a subsidiary of US-based fast-
moving consumer goods giant Sara Lee Corp. -- reiterated
yesterday that the Uniwide group of companies will continue
to be an important business partner.

"Uniwide has always been and will continue to be a
significant business partner to Sara Lee Phils. We have
supported them since the start of their operations, even
when times were difficult, and we have no doubt they will
succeed in their future endeavors," Danny Perez, Sara Lee
Phils. president, said.

Uniwide has admitted to needing the support of its trade
suppliers, including Sara Lee to stabilize its liquidity
problems.  Sara Lee, for its part, said it recognizes the
important role Uniwide plays in its business and is bent on
growing its business with Uniwide.

"It is a core value of our company to treat all our
customers as business partners, because we believe that
their success is our success," Perez continued.

Meanwhile, Sara Lee is expanding its operation in the
Philippines and the Asia-Pacific with the recent
acquisition of Metrolab Industries. Metrolab products will
be the first locally manufactured personal care products to
be marketed in the region by the Sara Lee group.

Sara Lee is as global manufacturer and marketer of high-
quality consumer products, with $20 billion in annual
revenues. With operations in more than 40 countries, Sara
Lee employs 139,000 people worldwide, and markets branded
products in more than 140 nations. Its leading brands
include Sara Lee, Douwe Egberts, Hanes, Kiwi and Playtex.

In the Philippines, Sara Lee currently markets brands like
Kiwi Shoe Care, Hanes and Playtex apparel, Fissan, Zwitsal,
Brylcreem bodycare, Ridsect Insecticides and a wide range
of skin care and cosmetics through its direct selling
operators under the umbrella of "House of Sara Lee."
(The Philippine Star  10-Feb-2000)


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

MEDIA CORP.OF SINGAPORE:Subsidiary chief quits,revamp ahead
-----------------------------------------------------------
Government-owned Media Corporation of Singapore, which is
undergoing restructuring to stay vibrant in the fast-
changing broadcasting industry, has suffered a high-level
casualty: Lee Cheok Yew, the chief executive of its
flagship Television Corporation of Singapore (TCS), has
quit.

His resignation was confirmed to BT yesterday by MediaCorp
chairman Cheng Wai Keung.  Mr Lee, 50, who handed in his
resignation a few days ago, is also leaving his post as
chief operating officer of MediaCorp, ending a nine-year
career with the studios. MediaCorp said it will be
conducting an executive search both internally and outside
the group to find a successor. Mr Lee, who could not be
reached for comment on his future plans, will be serving
out his three months' notice period.

The media industry has been abuzz this week with talk of
the resignation of the man who played a big part in turning
Channels 5 and 8 into money-spinners.  Mr Lee, who joined
TCS nine years ago from the SPH Group, became CEO of TCS,
the flagship of the whole group, in 1994.

Since then, the broadcasting industry has moved fast with
the convergence of telecommunications, computing and
broadcasting technologies. In order to meet those
challenges, the government embarked on restructuring
MediaCorp six months ago.

According to Mr Cheng, who was brought in as chairman last
year, MediaCorp's restructuring -- which divided the group
into seven units -- has proceeded well. TCS itself has been
reconfigured into four parts, or strategic business units,
each headed by a chief executive or chief operating
officer. These are MediaCorp Studios, MediaCorp News,
MediaCorp Interactive, TCS and SportsCity.

A new recent appointment is Franklin Wong as CEO of
MediaCorp Studios, the production arm of TCS. Mr Wong, who
is from Australia, has over 30 years of experience in the
media industry. (Singapore Business Times  10-Feb-2000)


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

BANGKOK METROPOLITAN BANK: HSBC to win bidding
----------------------------------------------
The Bank of Thailand will select HSBC Holdings PLC as the
winning bidder for Bangkok Metropolitan Bank, the Krungthep
Turakij reported, citing a source close to the
negotiations. The report said an announcement is expected
by Feb 24.

"But in the case of the sale of Siam City Bank, they are
still negotiating with potential bidders including
Newbridge," the source said. (Singapore Business Times  10-
Feb-2000)

ITV Plc: Rift over debt-equity swap
-----------------------------------
The conflict between Nation Multimedia Group and Siam
Commercial Bank over their interests in iTV Plc has
deepened, with the Nation objecting to the bank's plan to
convert part of its three-billion-baht loan into equity in
the company.

The plan was proposed by Prakit Pradepasen, chairman of
iTV. Mr Prakit represents the Crown Property Bureau and SCB
on the broadcasting company's board.  He said iTV would ask
the bank to convert about one billion baht in loans it owed
to SCB into equity.

The Crown Property Bureau-SCB group now holds 30% of iTV's
one billion baht in paid-up capital. If the debt-to-equity
conversion went ahead, its stake would rise to 80%.
Suthichai Yoon, editor-in-chief of the Nation Group and a
director of iTV, said the debt-to-equity conversion scheme
had never been proposed. If such a plan had been approved,
he said, it had been without the board's consent.

He said he strongly objected to the plan for two reasons.
The first was that iTV's problem was not its loan, but it
needed fresh funds of around one billion baht in order to
pay 850 million baht in concession fees to the government
by June.  The second reason, he said, was that the
conversion conflicted with SCB's stated goal of getting out
of non-core businesses.

Mr Suthichai insisted that iTV should go public by offering
the new shares to the general public.  He said he was
confident of high interest among small investors if they
were informed about the company's goal of being an
independent news and current affairs station.

iTV Plc is in the process of raising its paid-up capital to
two billion baht from one billion. But the Nation Group and
the Crown Property Bureau differ on how to achieve the
goal.  The Bureau, which is reportedly changing its
investment policy and planning to abandon its investment in
iTV, reportedly approached Thai Rak Thai Party leader
Thaksin Shinawatra to acquire the new shares.

Meanwhile, the Nation Group reportedly proposed to attract
a Singapore-based telecom giant as a strategic partner.
An informed source in iTV confirmed that Mr Suthichai had
informed the board late last month about interest from a
Singapore group, but Mr Suthichai denied the account.

"I don't know what they wanted to achieve in spreading
rumours that the Nation had been associated with a
Singapore group to acquire iTV shares. In fact, the Nation
has been approached by both Thai and foreign investors who
are not Singaporean," he said.

He said these investors had stipulated that before they
would commit funds, iTV must state a clear business
direction and restructure its debt.

"That's why the Nation had to hold talks with Khun Jada
[Watanasiritham, the SCB president]," he said, adding that
Mrs Jada had assigned Chatchawal Phannalap, the executive
vice-president, to negotiate with the Nation Group.

The debt restructuring plan proposed by the Nation Group
included a write-down of principal, interest reduction and
repayment rescheduling.  "But the bank said the plan was
unacceptable and it wanted the Nation Group to propose a
new restructuring plan," Mr Suthichai said.

A bank source said the Nation's proposal was only two pages
long and called for the bank to waive the interest payments
for iTV for 20 years. "I believe no bank in the world could
accept such demand."

The source also said that SCB was not allowed by the
Finance Ministry, which currently holds a 40% share in the
bank, to invest more in non-core businesses.  However, the
ministry would back a debt-to-equity conversion, as it
would be in line with government policy to encourage debt
restructuring, the source said.  The bank, the source said,
had already agreed to reduce the loan interest rate to only
1% per year for iTV, with a five-year grace period.

Mr Prakit, meanwhile, said he did not think small investors
would be drawn to iTV shares, given the company's heavy
debts. "Even the company's employees refused to buy the
company's shares."

He said the situation would be different if the company was
successful in convincing SCB to go ahead with the debt-
equity conversion.  While Mr Suthichai admitted that iTV
employees had refused to subscribe to the company's shares
when it last raised its paid-up capital by 200 million
baht, he said it was because the employees were unclear
about the company's direction.

"But if we explain the company's business direction to them
and also offer soft loans to them to subscribe to the
shares, I am confident they would take them. The Nation is
ready to secure financial sources for them," he said.
(Bangkok Post  10-Feb-2000)

LAM SOON: Major shareholders oppose capital increase
----------------------------------------------------
Singapore businessman Whang Tar Liang who controls Lam Soon
(Thailand), a Bangkok-listed food and beverage group, is
facing strong opposition from major shareholders who have
asked the Thai government to block a plan to double its
share capital because they were prevented from voting
against it.

The new threat to Lam Soon (Thailand) chairman Whang came
soon after he survived a boardroom revolt in Bangkok on Jan
31.

Whang's management policies are being challenged by an
influential group of shareholders that includes his nephew,
Whang Sun Tze and Malaysian-listed Hap Seng Consolidated
Berhad's chief executive John Madsen who was sacked from
Lam Soon (Thailand)'s board at the EGM.

The group filed an injunction with the Ministry of Commerce
in Bangkok last week to block the plan to double share
capital to 820 million baht through a one-for-one rights
issue because they allegedly were prevented from voting
against it at an extraordinary general meeting (EGM) on Jan
31 in Bangkok.

It also complained to the Stock Exchange of Thailand (SET)
claiming that no reason was given for being denied access
to the EGM and about the summary sacking of Mr Madsen. An
SET official said on Friday the authorities were examining
the complaints.

Mr Whang Sun Tze had earlier filed a complaint at the Bang-
na Police Station in Bangkok alleging that he was denied
entry at the EGM which had approved the increase in issued
capital.  The opposition group is also appealing a decision
by the Southern Bangkok City Court to dismiss a civil suit
to nullify the results of the EGM. The appeal is to be
heard on March 28.

The crisis in Lam Soon (Thailand) was sparked off by the
payment of a huge dividend amounting to 328 million baht in
Nov 1999 and the subsequent call a month later for a rights
issue.  The group of Malaysian and Singaporean investors
claim they had wanted to block not only the planned capital
increase but also an amendment to the articles of
association to cap board directors at nine.

With a 30 per cent stake the investors claim they could
have blocked the capital increase because the motion needed
75 per cent of the vote to pass.  Listed in Thailand in
1995, the company produces palm oil products branded
Moonlight and Knife; shortening and margarine branded Zest,
Golden Leaf and Fry Fry; and dishwashing liquid and cream
branded Zip, Zippy, and L-Q. It is also in packaging.

Chairman Whang, and three other friendly associates,
control about 32 per cent of the stock through Lam Soon
Holdings. (Business Day  10-Feb-2000)

ROBINSON DEPT.STORE: To file debt plan
--------------------------------------
Robinson Department Store Pcl, one of Thailand's largest
retailers, said it would jointly file a debt restructuring
proposal with creditors to the Bankruptcy Court within 60
days.

Robinson, delinquent on 17 billion baht (S$764.7 million)
of debt made the comment a day after a group of foreign
creditors, led by Citibank NA, voted to file a proposal,
which includes payment postponements and debt-for-equity
swaps, to the court. The plan calls for payment extension
of up to eight years. (Singapore Business Times  10-Feb-
2000)

SIAM CENTRE: Plans B20-30m renovation, revamp
---------------------------------------------
Retailers have been revamping and expanding their
businesses, anticipating help from an economic recovery.

Central Department Store at Hua Mark will be closed
permanently and be replaced by a Big C supercentre, while
Siam Centre will be modernised.  Chadathip Chutrakul,
managing director of Bangkok Intercontinental Hotels Co,
said that between 20 million and 30 million baht would be
spent on renovating the exterior of Siam Centre, which is
almost 30 years old. The new design would be approved this
month.

As well, the company is holding talks with four supermarket
chains to open their services on the fourth floor of Siam
Centre this year.

The company suffered a total loss of 100 million baht in
recent years because of the recession, severe fire damage
to the centre, and the need to discount rents by up to 30%.
However, business has been brisk since late last year, with
tenants paying rent on time, Ms Chadathip said.

Rent discounts would be lowered to 10-15% in the second
quarter, she said. Commuters using the skytrain had doubled
customer traffic around Siam Square, one of the busiest
shopping centres in Bangkok. Some 120,000 shoppers passed
through each day at weekends, and 80,000 on other days.

"The company has a long waiting list of suppliers to launch
their products in a promotional zone at the centre until
the middle of this year," she said, adding there were 50
prospective tenants. Purchases in the centre averaged 1,500
baht, she said.

Meanwhile, Central Watson Ltd, operator of Watson's
personal stores, expects its sales revenue to grow by 60%
after opening 12-15 more outlets nationwide this year.
Central Retail Corporation expects the Big C supercentre to
open at Hua Mark in June.  The ground floor will be set
aside for a Top's supermarket while Big C supercentre
itself will occupy the second to fourth floors. The fifth
floor will have a food centre, and the sixth will have six
cinemas.

Central Watson, a joint venture of Central Group and its
Hong Kong partner, has 53 outlets including one opened
yesterday at Siam Centre. (Bangkok Post  10-Feb-2000)

THAI PETROCHEMICAL INDUS.: Wrestling with creditors
---------------------------------------------------
Few Thai chief executive officers are as tough as Prachai
Leopairatana, head of TPI Group, in resisting drastic
changes. Yesterday in the Central Bankruptcy Court, Prachai
filed an objection to the debt restructuring plan of Thai
Petrochemical Industry (TPI) that he had submitted himself.

That surprised his creditors who are owed more than $3.5
billion by this petrochemical giant.  Creditors and
analysts said the filing is another strong-armed tactic
Prachai is using to get his way in restructuring TPI's
massive debt, one of the largest cases of non-performing
loans in the financial system.

Prachai filed the objection 22 days after submitting the
debt restructuring plan to the court. According to law,
objections must be filed within 30 days after a plan is
submitted.  Prachai is also the plan administrator, in
charge of implementing the plan for 148 creditors.

By delaying the debt rehabilitation process, people close
to the matter said, Prachai might expect to settle
important conditions of the restructuring plan in his
favour.  Topping the list are conditions for TPI's $1-
billion recapitalisation, which creditors agreed to on Jan
17 with the condition it would be implemented according
negotiations after implementation of the debt plan.

Prachai could also be expecting the creditors to take a
bigger haircut on unpaid interest charges, up from the $400
million agreed in the plan to about $600 million, creditor
sources said.  Working in his favour is an upward trend of
world petrochemical prices which analysts do not expect to
peak until 2003. Prachai, who has been fighting to keep
control of TPI for more than 30 months, seems to have some
bargaining power to delay the rehabilitation process.

However, the TPI case not only affects Prachai and his
family, who may see their shareholding diluted from 60 per
cent to about 20 per cent, but also confidence in the
economy as a whole.  The Bank of Thailand has been involved
with this case from the beginning because of the sheer size
of the company's non-performing loans. When the US$1
billion debts of its affiliate TPI Polene are included, the
group owes Bt2.7 trillion, or 6 per cent of the total non-
performing loans in the country.

The Board of Investment has also been involved hoping to
shore up investor confidence.  The huge amount of bad debt
also affects the stability of financial institutions,
according to Deja Tulanond, a senior executive of Bangkok
Bank.  He added that continued delay may cause the
government to step in to solve the problem.

When Prachai and creditors signed the plan on Jan 17, the
creditors and other people following the deal sighed in
relief. Few if any anticipated the plan's administrator
would object to it.

The TPI ordeal started with the baht floatation in July
1997. Thailand plunged into its severest economic crisis in
decades and TPI with it.  Then an emerging petrochemical
giant, TPI saw its foreign currency denominated debt run
out of control. In early 1997 when the baht traded at 25 to
the dollar, TPI owed Bt87.5 billion.

By January 1998 when the baht fell to more than 50 to the
dollar, TPI owed more than Bt160 billion. The company
reported a consolidated foreign exchange loss of Bt14
billion in the third quarter of 1997, the first quarterly
results following the baht floatation.  The major
shareholders, led by Prachai, defaulted on the loans and
waited to negotiate with creditors.

The default allowed the firm to continue business and keep
cash flowing while the debt restructuring was worked out.
Reportedly, after defaulting, the company's monthly
cashflow peaked at Bt4 billion last December.  In February
last year, debt negotiations had progressed to the stage
where both sides tentatively agreed to a set of terms,
which included extending the debt repayment period by more
5 years and converting $400 million in unpaid interest into
30 per cent of TPI's equity.

In this process, the Leopairatana family's control of TPI
would be diluted significantly. In June 1999, serious
problems arose between the family and creditors who
indicated a desire to assume control of the company.
Last November, Prachai proposed a plan to raise $1 billion
in equity. Creditors opposed it, saying it was unacceptable
at that stage and urged Prachai to sign a debt
restructuring contract before negotiating an additional
proposal. (The Nation  10-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

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