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     T R O U B L E D   C O M P A N Y   R E P O R T E R

                          A S I A   P A C I F I C

            Monday, February 14, 2000, Vol. 3, No. 31

                                  Headlines


* C H I N A  &  H O N G  K O N G *

PALIBURG HOLDINGS: To sell head office
WAH NAM GROUP: Reports filing winding-up petition to HKSE


* I N D O N E S I A *

PT INDOSTEEL TBK: Reports debt rescheduling to JSX
PT LIPPO LAND DEVELOPMENT: Reports rehab progress to JSX
PT TIMOR PUTRA NAT'L: National car idea revived with Kia


* J A P A N *

LONG-TERM CREDIT BANK: Japan concludes contract for sale
MITSUBISHI MATERIALS CORP.: To float stock to reduce debts
NAKANO CORP.: To post special loss of 11B Yen
NICHIEI CO.: Chief to step down, fundraising suspended
NISHIO RENT ALL CO.: Considering cutting debt in 2 years
NISSAN MOTOR: Financial, cash management divided up
NISSAN MOTOR CO.: Implementing merit pay,pay cuts an option


* K O R E A *

DAEWOO MOTOR: 5 automakers to be invited to bid
DAEWOO SECURITIES: Likely to be auctioned off next month
HANWHA GROUP: Fined for illegal support to subsidiaries
HYUNDAI GROUP: Fined for illegal support to subsidiaries
KOREAN AIR: Tax evasion lands airline chief in jail
KUMHO GROUP: Fined for illegal support to subsidiaries
LG GROUP: Fined for illegal support to subsidiaries
LOTTE GROUP: Fined for illegal support to subsidiaries
SAMSUNG GROUP: Fined for illegal support to subsidiaries
SAMSUNG MOTOR: Renault after support for initiative
SAMSUNG MOTORS: Renault sweetens buy offer
SK GROUP: Fined for illegal support to subsidiaries


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

BW RESOURCES CORP.: PSE's findings still inconclusive
BW RESOURCES CORP.: 8 brokers tagged in alleged stock fraud
BW RESOURCES CORP.: BW's Tan hits back at brokers
BW RESOURCES CORP.: SEC threatens to compel report copies
DOMESTIC SATELLITE PHIL.: Court stops asset foreclosure
PDCP BANK: Metro Pacific to infuse P2.5B in banking unit
PHILIPPINE NAT.BANK: Gov't eyeing lower net sale proceeds
UNIWIDE HOLDINGS: Stock to resume trading Mar. 1

* S I N G A P O R E *

CLOB INT'L: Melewar offer papers due out in 10 days


* T H A I L A N D *

CHAROEN POKPHAND FOODS: To issue bonds to pay foreign debt
DBS THAI DANU BANK: Stock falls on shareholder unrest
SINN BUALANG PLC: Seeks court assistance on rehab plan
STATOIL ASIA PACIFIC PTE: Reports to SET on legal dispute
THAIOIL: Sells 40% Stake in Thai Carbon Product
THAI PETROCHEMICAL INDUS.: Plan objection stirs creditors
THAI PETROCHEMICAL INDUS.:Creditor twists keep lawyers busy


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

PALIBURG HOLDINGS: To sell head office
--------------------------------------
Paliburg Holdings plans to sell its headquarters building
in Causeway Bay to raise cash and cut debt.

The developer also plans to sell a Yuen Long residential
site and Redhill Plaza in Tai Tam which could bring the
total raised to HK$1 billion, sources said.  Paliburg
Plaza's top floors are occupied by Paliburg and its
affiliates, among them its parent, Century City
International Holdings, and a subsidiary, Regal Hotels
International Holdings.

The three companies would lease the floors they use if the
property is sold, the sources said.  Paliburg has appointed
a property consultant to arrange a tender for Paliburg
Plaza, which will close for bidding next month.  The
property includes a shopping arcade and office floors,
totalling more than 200,000 square feet. It also provides
more than 100 car-park spaces.

Sources said most of the office spaces were leased out.
The company also wanted to sell a 20,000 sq ft residential
plot in northwest Yuen Long.  The site was acquired by
Paliburg for HK$33 million two years ago through a public
auction.  Redhill Plaza is a shopping arcade in Tai Tam
with tenants such as supermarket and some property agency
firms.

Analysts said it would take some time for the financially
strapped Paliburg to sell its properties successfully as
the  market sentiment remained cautious.  Last year, the
group sold investment properties in Tsuen Wan, Tai Po and
Yuen Long and generated HK$300 million. It also sold a 70
per cent stake in an Ap Lei Chau housing lot for HK$399
million.

Analysts said Paliburg was still in trouble and remained
the worst-hit company in the Century City group controlled
by chairman Lo Yuk-sui.  Century City recently successfully
placed 138 million shares to raise net proceeds of HK$50
million after it announced it will turn its communication
unit 8D International into a high-technology venture.

Regal Hotels has the strongest financial position in the
group after securing a deal to raise US$234.4 million cash
before taxation and expenses by selling 28 US hotels to
Britain-based Millennium & Copthorne. (South China Morning
Post  11-Feb-2000)

WAH NAM GROUP: Reports filing winding-up petition to HKSE
---------------------------------------------------------
Wah Nam Group Limited (Incorporated in Hong Kong with
limited liability), through Chan Kwok Choi Matthew,
Executive Director,
wishes to announce that a winding-up petition was filed on
behalf of Excel Noble Development Limited ("1st
Petitioner") and Unbeatable Assets Limited ("2nd
Petitioner") on 10th February, 2000 at the High Court
against the Company on the grounds that the Company is
insolvent and unable to pay its debts due to (i) the 1st
Petitioner in the amount of HK$15 million plus interest and
(ii) the 2nd Petitioner in the amount of HK$15 million plus
interest pursuant to a court order granted on 17th
December, 1999.

The Company intends to defend the said winding-up petition
on the grounds that the Company has adequate finance to
satisfy its debts and the winding-up of the Company would
jeopardize the interests of the Company and/or its
creditors.

As disclosed in the announcements dated 14th, 26th and 27th
January, 2000, the Company is experiencing substantial cash
flow difficulties. The Company is presently conducting
negotiation with certain financial institutes and other
lenders for additional financial arrangements to satisfy
its debts as well as other needs, failing which the Company
will not be able to maintain its normal operation.

Further, the Company intended to dispose of its 60%
interests in Hangzhou Huanan Engineering Development Co.
Ltd. which owns the proprietary rights to Highway G320
(Hangzhou Shanhusha to Jinjialing Section), which is a toll
road located in Hangzhou City, Zheijang Province, the PRC
for projected net cash proceeds of HK$85 million, to the
extent allowed by the Injunction granted by the High Court
against the Company on 17th December, 1999 and subject to
the approval of the High Court (if required) in light of
the winding-up petition.

The Directors believe that the disposal of the interests in
Hangzhou Huanan Engineering Development Co. Ltd. will
provide adequate finance to meet the present needs of the
Company and, thereafter, the total value of the
unencumbered assets of the Company will not be less than
HK$61 million.

Referring to the announcement dated 27th January, 2000 with
respect to the seizure of office furniture and equipment of
the Company on 27th January, 2000, it is the Directors'
understanding that undispute part of the seized chattels
will be auctioned on 11th February, 2000.

The Directors have considered the above and is of the view
that the said winding-up petition and the auction have no
impact on the normal operations of the Company save that
any disposition of the property of the Company, including
things in action, and any transfer of shares, or alteration
in the status of the members of the Company shall, unless
the Court otherwise orders be void as provided under
Section 182 of the Companies Ordinance. Further
announcement will be made on any material development.

Persons dealing in securities on the Stock Exchange should
exercise caution when dealing in securities of the Company.
(Stock Exchange of Hong Kong  11-Feb-2000)


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

PT INDOSTEEL TBK: Reports debt rescheduling to JSX
--------------------------------------------------
In its Quarterly Progress Report ended on 31 December 1999,
PT Indosteel Tbk through Yose Rizal, Head of Listing
Division and Bambang Aribowo, Head of Trading Division
reports the company's progress report for the third quarter
of 1999 are as follows:

1. Sales and Produce Activity:  As informed by company that
company had sopped its produce activity. The recent produce
activity had sold the existing stock. Until 31 December
1999 sales reached Rp 4.393.716.049,- consist of Rp
3.338.470.434,- for export sales and Rp 1.055.245.615,- for
local sales.

2. Debt Restructuring:  The company had been negotiating
reschedule its debt with creditors and hoped will be
finished in the beginning of year 2000. The further detail
progress will be informed by company.

3. The Exchange value: During the latest quarter of year
1999, the rupiah exchange value to US Dollar is stable and
getting rising until 31 December 1999 the middle kurs was
Rp 7.100,- if compared with kurs dated 31 December 1998 was
Rp 8.025,-. This matter showing that the exchange will give
profit impact to the company because company has a loan in
form of US Dollar.

4. The company's Plan Progress:  The company planned to
invest in garment unit in Purwakarta, West Java. The
company planned to execute Right Issue to fill fund need
from own capital. The uncertain market in the forth
quarter, the management decided to wait until the right
time in executing the Right Issue.

The garment project construction has been executed
referring to the schedule. The development of factory and
installation of machines almost finish. Around 300 people
had been hired and trained. The garment unit hoped will
start to produce in the beginning of year 2000.

5. In line with recovery of the economy condition at the
end of this year, the company hoped that it will survive
from the crisis and will operate referring to the previous
plan.  (Jakarta Stock Exchange  10-Feb-2000)

PT LIPPO LAND DEVELOPMENT: Reports rehab progress to JSX
--------------------------------------------------------
PT Lippo Land Development Tbk through Yose Rizal, head of
listing division, and Bambang Aribowo, head of trading
division reports its progress for the third quarter ended
on 31 December 1999 as  follows:

1. The Loan Restructuring Progress:  The company had
discussed with creditor regarding proposal of loan
restructuring. So far, the creditor gave a positive
response. The loan to Bank Danamon Indonesia - under IBRA
is still in finishing process. Until now, the company had
been finishing a special auditing process or business plan
referring to IBRA's demand.

2. Financial Statement:  The condition of Company's finance
dated 31 December 1999 are as follows: (in billion Rupiah
and before share agio capitalization)
                                              31 Dec 99          31 Dec 98
Total Asset                              723                          736
Total Liabilities                       625                          666
Total Equity                               98                            70
Total Income                          11,3                         15,2
Total Expense                          7,9                         13,2
Loss before tax income       (50,3)                    (484,4)
Net Loss                                (52,6)                    (485,1)

3. Share Agio Capitalization:  Share Agio totaling Rp
289,59 billion planned to be capitalized before end of June
of this year (if the condition is enable and referring to
the existing regulations of Capital Market and Stock
Exchange). Therefore, after capitalization of paid-up
capital become Rp 538,42 billion.  (Jakarta Stock Exchange
09-Feb-2000)

PT TIMOR PUTRA NAT'L: National car idea revived with Kia
--------------------------------------------------------
Indonesia and South Korea have agreed in principle to
revive Jakarta's defunct national car project, President
Abdurrahman Wahid announced yesterday, but said many
problems had to be ironed out first.

The preliminary accord came in a summit earlier yesterday
between Mr Wahid, the first Indonesian leader to visit here
in 18 years, and South Korean President Kim Dae Jung, Mr
Wahid told a press conference.

"We agreed to begin again the national car project as long
as the companies don't violate the regulations and
restrictions of the World Trade Organisation as well as try
to accommodate the needs of the market in Indonesia," he
said.

PT Timor Putra National (TPN) was launched in 1996 in co-
operation with South Korea's Kia Motor Corp by ex-president
Suharto's son "Tommy" Mandala Putra.  But after Mr
Suharto's fall in May 1998, Jakarta withdrew Kia's
exclusive tax and import breaks which had drawn howls of
protest from European and US car makers, who took the issue
to the World Trade Organisation (WTO).

It ruled against TPN as the company was selling wholly-
imported Kia cars with no local content and the operation
ground to a halt. Kia formally pulling out last year. Mr
Wahid said that, if the controversial scheme was to be
restarted, the cars must include a certain quota of
locally-made parts and it must help expand Jakarta's auto
market, possibly with the help of other regional
manufacturers.

"It will incorporate components made by producers there and
will include also the possibility of enlarging the market
with co-operation with another car company in the area,
such as Malaysia," he said.

But some of his senior aides said the agreement was only in
its earliest stages and that the issues of content quotas
and demand for the cars still had to be worked out.
Officials at Kia have said privately that the company, now
owned by Hyundai, was unlikely to agree to soon resurrect
the failed joint-venture, for which it provided knock-down
Korean cars and technology. (Hong Kong Standard  11-Feb-
2000)


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

LONG-TERM CREDIT BANK: Japan concludes contract for sale
--------------------------------------------------------
The Japanese government signed a final contract to sell
nationalized Long-Term Credit Bank of Japan to a consortium
led by U.S. investment group Ripplewood Holdings LLC,
Financial Reconstruction Commission chief Michio Ochi said.

Ripplewood and the other companies, collectively called New
LTCB Partners, will acquire 2.4 billion issued common LTCB
shares from the Deposit Insurance Corporation for one
billion yen ($9.1 million) on the closing date, expected to
be March 1, the commission said.

LTCB Partners will invest 120 billion yen in the newly
created LTCB by subscribing to 300 million of new common
shares and will apply for 240 billion yen of public fund
from the Japanese government, the FRC said. This will be on
top of the 130 billion yen injection of funds the
government made in March 1998.

"With the new management style, I hope that it will become
a bank management model for Japanese banks to follow," Mr.
Ochi said.

He said the government will contribute about 3.6 trillion
yen of public money in order to fill the hole left by the
mountain of bad debts at the failed institution. (The Asian
Wall Street Journal  10-Feb-2000)

MITSUBISHI MATERIALS CORP.: To float stock to reduce debts
----------------------------------------------------------
Japan's top nonferrous metal company Mitsubishi Materials
Corp. (5711) will float the stock of two subsidiaries, Dia
Consultants Co. and Ryoko Sangyo Corp., by the end of March
2003 and use the funds raised from the listings to repay
loans, company sources said Thursday.

Dia, a geological survey company, will be listed either on
the second section of the Tokyo Stock Exchange or on the
over-the-counter market during the next business year,
starting April. Ryoko, which sells cemented carbide tools
and other metal products, will be listed on the second
section of the TSE in fiscal 2002.

Mitsubishi Materials has about 1 trillion yen worth of
interest-bearing debt on a consolidated basis.  The company
also plans to sell its Tokyo head office for 21 billion yen
and its Sapporo building for 4 billion yen by the end of
March in an effort to reduce its debt burden.  (Nikkei  10-
Feb-2000)

NAKANO CORP.: To post special loss of 11B Yen
---------------------------------------------
Nakano Corp. (1827), a midsize contractor, plans to post an
extraordinary loss of 11 billion yen in the year through
March to dispose of nonperforming loans to its financial
unit and unrealized losses on its real estate holdings for
sale, company sources said Thursday.

As a result, its net loss is expected to increase to just
over 11 billion yen from an earlier estimate of 1.1 billion
yen.  Nakano will relinquish 4-5 billion yen loans to its
financial subsidiary which has been unable to collect loans
worth 7 billion yen to a golf course developer in Fukushima
Prefecture. In addition, it will dispose of unrealized
losses of real estate reserved for sale, adopting lower-of-
cost-or-market valuations from fiscal 1999 accounts.

It will be the company's second consecutive net loss, but
Nakano expects the write-offs to be the last of the
liabilities incurred during the real estate boom of the
late 1980s and early 1990s.

The move to use the lower-of-cost-or-market method for
evaluating losses on real estate holdings comes ahead of
the implementation in fiscal 2000 of new accounting rules
requiring corporations to evaluate at market prices of real
estate that has lost 50% or more of its acquisition value.

As the end of last September, the company had 3.7 billion
yen worth of real estate for sale. Nakano also plans to
post an extraordinary loss of 3 billion yen to cover losses
on the land held by its U.S. unit.

To write off the loss, the company will use surplus cash
reserves boosted after it absorbed a company of the
founding family last October. The move raised its equity
capital to about 20 billion yen and ensured there will be
no carryover of the loss to next fiscal year. (Nikkei  10-
Feb-2000)

NICHIEI CO.: Chief to step down, fundraising suspended
------------------------------------------------------
Nichiei Co. (8577) appointed Ryuichi Matsuda as its
president from Feb. 29, when his father, Kazuo Matsuda,
will step down to take responsibility for recent scandals
over the company's lending practices, the small business
lender said Thursday.

Kazuo Matsuda will remain on board as a director, Nichiei
said.  Ryuichi Matsuda, currently representative senior
director at Nichiei, joined the company in 1979 and its
board of directors in 1982, Nichiei said.

The Ministry of Finance Thursday ordered Nichiei to suspend
fund raising through such measures as a bond issuance for
the purpose of lending, Nichiei said. The suspension is for
the two months from Feb. 14 through April 13, the company
said.  The order is part of MOF's administrative penalties
on Nichiei for its violation of Japan's money lender law
which prohibits aggressive loan collection practices.

The financial authorities have already ordered Nichiei to
suspend lending for as long as 90 days at some outlets.
Regarding Thursday's order, Nichiei said, "we don't expect
major impact on our fund raising or earnings." (Nikkei  10-
Feb-2000)

NISHIO RENT ALL CO.: Considering cutting debt in 2 years
--------------------------------------------------------
Nishio Rent All Co. (9699) aims to slash interest-bearing
liabilities by 34% from the September 1999 level of 45.2
billion yen to about 30 billion yen by September 2001.

The equipment leasing company's liabilities swelled 26.3
billion yen last fiscal year after it took Sacos Corp.
(9641) under its wing as a subsidiary in August 1999. It
now aims to strengthen its balance sheet.

Nishio Rent All believes it will be able to put 2.8 billion
yen of profits aside as internal reserves over the next two
years. It also hopes to generate 3 billion yen from the
disposal of unneeded real estate and 1.1 billion yen from
the sale of securities.  The company will also use 5
billion yen of its 13 billion yen of cash reserves to repay
borrowing. (Nikkei  10-Feb-2000)

NISSAN MOTOR: Financial, cash management divided up
---------------------------------------------------
Japan's Nissan Motors outlined Thursday a sweeping reform
of its financial management which granted Chase Manhattan
overall management of its global cash flows.

The major US bank will also handle Nissan's treasury
operations in North America and Mexico, said Thierry
Moulonguet, deputy chief financial officer at the Japanese
car maker.  Fuji Bank Ltd. will be responsible for Nissan's
treasury operations in Japan while French car maker Renault
SA's internal treasury bank will take over the European
cash management, Moulonguet told AFP.

The contracts were awarded as part of reforms that
centralised decision-making in the Tokyo headquarters to
end the fragmentation that had led to costly mistakes in
the past, he said.  This means that no position that puts
the business at risk can be taken without the explicit
approval of the central management," the top Nissan finance
official told AFP.

At the end of the 1990s, Nissan's US division lost a
billion dollars in risky leasing operations.  Nissan's
operations have been overhauled since Renault took a 36.8-
percent stake in the financially troubled firm in
May 1999, becoming the top shareholder.  The alliance
created the world's fourth largest carmaker.

The reorganisation of Nissan purchase and sales cash flows,
worth billions of dollars a year globally, was one of the
priorities of a reform team introduced by chief operating
officer Carlos Ghosn.  Moulonguet, whose has been guiding
reforms of the financial operations since Renault took
control, said the treasury overhaul will generate very
significant savings."

It would lead to payments automatically being made in the
same currencies under the most favourable conditions,
better management, reduced risk, and lower back office"
administration expenses, he said.

In North America and Japan, Moulonguet said, the banks had
been selected according to price, quality of service and
the quality of their relations with Nissan.  In other
words, Fuji Bank was not chosen simply because it was
traditionally Nissan's main bank.

For global treasury operations, Chase Manhattan, which
already managed a large slice of Nissan's cash flow in the
United States, came on top amongst competition which was
limited in practical terms to other major US banks such as
Citicorp or BankAmerica.

In Europe, Renault's internal treasury bank was a natural
choice. In the alliance agreed in 1999 with Nissan Motor,
Renault bought up the Japanese car maker's European
financial affiliates.

Ghosn announced in October last year major reforms
including halving interest-bearing debt to 700 billion yen
(US$6.4 billion) by March 2003. (Business Day  11-Feb-2000)

NISSAN MOTOR CO.: Implementing merit pay,pay cuts an option
-----------------------------------------------------------
Nissan Motor Co., now considering how to reduce its labor
costs, isn't planning pay cuts but says such reductions do
remain "an option," according to a top executive at the
company.

Other than making headcount reductions, Nissan "isn't
considering" any move that would lead to a reduction in
employee remuneration, said Masahiko Aoki, a senior vice
president of the Japanese auto maker.

Yet, while a pay cut isn't among the measures being weighed
by the company at the moment, it's "an option just off the
list of different actions we are looking at," said Mr.
Aoki. He emphasized that his doesn't mean Nissan is mulling
a pay cut, and added that his views only apply to Nissan's
parent company.

Slashing labor costs is one of the key restructuring moves
Nissan announced last October. Under the plan, Carlos
Ghosn, Nissan's Brazilian-born chief operating executive,
is expected to shut down five manufacturing plants in
Japan, reduce the group's headcount level by 14%, slash
purchasing costs 20% over three years and halve the number
of parts suppliers to no more than 600 by the end of 2002.
Mr. Ghosn drew up the plan after Nissan sold a 37% stake to
Renault and he was sent in to engineer a turn around.

Meanwhile, Nissan Motor will introduce a salary system
based solely on individuals' performance and company
results for its 2,000 managers.  "The move is to ensure
performance-oriented work ethics and to boost our
profitability," said Nissan spokeswoman Ritsuko Harimoto.

Japanese companies have traditionally relied on seniority
to assess promotion and salaries, but some are breaking the
historic mould as they grapple to restore competitiveness
after a decade-long economic slump.  Under the current
system, some 90 per cent of a Nissan manager's paycheck
depends on his own and the company's performance, with the
rest based on seniority.

"This will change," Harimoto said, adding that if the
company makes losses, managers will not receive a bonus.
"Under the new payroll system, managers' salaries could
vary as much as 40 per cent" depending on company
performance, she said.

Harimoto added that 300 workers in a steel-plating division
at the doomed Murayama plant, 35 kilometers (22 miles) west
of Tokyo, would keep their jobs beyond the factory's
planned closure in March 2001.

"We agreed with labor unions to keep Murayama's plating
division operating until March 2004," she said.  "The
division's 300 workers now have extra time to find new
jobs, because they cannot relocate themselves so quickly."

Nissan plans to sell shares held in 1,394 companies and to
use the proceeds to repay massive debts under its revival
plan, which also involves shedding 21,000 jobs and shutting
five plants in Japan.

The subject of pay reduction is a potentially thorny issue
for Nissan. Nissan's labor unions have so far generally
cooperated with Mr. Ghosn's restructuring plan. But Yoshio
Takahashi, chairman of the federation of Nissan labor
unions, said that while he remains supportive of the plan
so far, "the biggest concern" he has with Mr. Ghosn's plan
is whether Nissan and its affiliates will resort to pay
cuts to achieve their cost-cutting targets. "We may have to
take a more hostile posture against Mr. Ghosn if that
becomes the case," said Mr. Takahashi.

Separately, a Nissan spokesman said that more than 80% of
the auto maker's parts suppliers have accepted Nissan's
demand for a 20% cost cut over three years. Nearly 1,200 of
Nissan's suppliers had been asked to respond to Mr. Ghosn's
cost-slashing demand by the end of January, and "more than
80%," of them responded with specific cost-cutting
prescriptions, he said.

The spokesman added that Nissan is expected to wrap up by
the end of March the screening process to determine which
among its 1,200 suppliers will retain their business with
Nissan. Nissan wants to halve the number to boost its
purchase scale with each remaining supplier and thus reduce
costs more effectively. (The Asian Wall Street Journal  10-
Feb-2000, China Daily  11-Feb-2000)


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

DAEWOO MOTOR: 5 automakers to be invited to bid
-----------------------------------------------
Five world-leading auto makers will be invited to
participate in a "limited scale" international auction of
Daewoo Motor, the ailing flagship of the insolvent Daewoo
Group, officials of the government and creditor banks said
yesterday.

"During a consultation between the government and creditor
banks, a request for proposals for the purchase of the
country's second largest auto maker will be sent only to
General Motors and Ford of the United States, European-U.S.
maker DaimlerChrysler, Fiat of Italy and Hyundai Motor of
Korea," a senior government official said.

The official said that the letter also expresses a
willingness to consider a consortium between those invited
as a viable bid.  The list notably excludes Volkswagen of
Germany, the now defunct Samsung Motors and a widely
regarded wildcat bid by the Korea Federation of Small and
Medium Business.

As to when the "request for proposals" will be sent out, an
internal memo prepared Wednesday by Daewoo Motor's main
creditor Korea Development Bank stated, "Immediately after
the launch of the Daewoo Group Restructuring Committee on
Feb. 10 or 11."

Oh Ho-keun, head of the Corporate Restructuring
Coordination Committee overseeing corporate debt workouts,
will take the helm of the new committee. Reports have it
that the committee, staffed by Daewoo executives and
creditor bank representatives, is set to be launched today.

A Daewoo Motor spokesmen said the letters were not sent
yesterday so the likelihood is that they will be sent out
today or soon thereafter. Chief public relations officer of
Daewoo Motor, Kim Jong-do, said, "The five were selected
according to a criteria that limits potential bidders to
those larger than Daewoo Motor."

A creditor banks-conducted due diligence showed that Daewoo
Motor has 18 trillion won in debts against assets of 12
trillion won.  Among those excluded from the list,
Volkswagen, a lucrative car maker that has absorbed one
regional car maker after another, had reportedly expressed
an interest in Daewoo Motor, which has an extensive
production and sales network at home and abroad, notably
its Polish operations.

Samsung Group was also floated as a potential bidder until
the last minute, according to government officials and
industry sources, although it had repeatedly declared no
interest after its auto affiliate Samsung Motors was put
under court receivership. But speculation has it that the
government considered bringing in Samsung as bidder ahead
of the important April general elections to ease anti-
ruling camp sentiment in Pusan, Samsung's stronghold.

As for the clause in the letter that leaves the door open
for a consortium of bidders, it is intended as a compromise
between the government's opposition to Hyundai's bid and
the public backlash that this opposition could bring about.
Many industry experts speculate of an eventual partnership
between Hyundai and Ford in the upcoming bid.

Han Young-chul, head of the recently-launched secretariat
for the Daewoo Motor sale, expects that the whole bidding
process should be wrapped up by the end of this year at the
latest.

"The schedule for the entire process that would have a
priority negotiator by March and a deal sealed by June may
be too tight," Han said, denying that GM may have a leg up
because of its former close ties with Daewoo Motor. "A
level playing field will be provided for all bidders."
(Korea Times  10-Feb-2000)

DAEWOO SECURITIES: Likely to be auctioned off next month
--------------------------------------------------------
Daewoo Securities is likely to be put up for sale in a
closed bidding process next month.

A Korea Deposit Insurance Corp. (KDIC) source said
yesterday that 32.5 percent of stakes held by 10 creditor
banks will be up for sale next month. Bidding invitations
have been sent to four to six domestic and foreign firms.

The KDIC will take charge of the sale because it holds a
14-percent stake, including the stakes it took over from
Korea First, Hanvit, Cho Hung and Seoul banks into which it
injected public funds.  Under closed bidding conditions,
only a selected number of qualified potential investors are
invited to present offers. (The Korea Herald  11-Feb-2000)

HANWHA GROUP: Fined for illegal support to subsidiaries
HYUNDAI GROUP: Fined for illegal support to subsidiaries
KUMHO GROUP: Fined for illegal support to subsidiaries
LG GROUP: Fined for illegal support to subsidiaries
LOTTE GROUP: Fined for illegal support to subsidiaries
SAMSUNG GROUP: Fined for illegal support to subsidiaries
SK GROUP: Fined for illegal support to subsidiaries
--------------------------------------------------------
The Fair Trade Commission yesterday imposed a total of 7.5
billion won in fines on the nation's seven largest chaebol
groups on charges of providing illegal support to their
one-time subsidiaries.

The trade watchdog has investigated 23 firms that were once
affiliates of the groups but have either been spun off into
independent entities or now belong to separate groups under
management of relatives of the seven groups' chairmen.

According to the commission, 21 firms belonging to the
seven groups, including Hyundai, Samsung and LG, have
conducted transactions amounting to 1.08 trillion won with
their former affiliates to provide illegal support totaling
12.4 billion won.

By group, Hyundai was fined 3.87 billion won, Lotte 1.36
billion won, 870 million won for Hanwha, 750 million won
for SK, 440 million won for Samsung, 160 million won for LG
and 60 million for Kumho.

Among the top 10 groups, Daewoo and Hanjin were not
included in the inspection because Daewoo is being broken
up and Hanjin did not have any affiliates that were spun
off and managed by the chairman's family members
independently. Ssanngyong was included in the inspection
but was found not to have provided illegal support to its
former subsidiaries.

The commission said the seven groups have been supporting
their former affiliates in similar ways to those used to
support their weak subsidiaries.

Hyundai was found to have provided assistance to Kumkang
and Sungwoo groups, both managed by brothers of its founder
and honorary chairman Chung Ju-yung. Samsung aided firms
affiliated with Shinsegae Department Store, while LG
provided support to Heesung Group.  (The Korea Herald  11-
Feb-2000)

KOREAN AIR: Tax evasion lands airline chief in jail
---------------------------------------------------
The chairman of Korean Air has been convicted of tax
evasion and sentenced to four years in prison. Cho Yang-ho,
51, was also fined 30 billion won (about HK$207 million)
for evading taxes worth 27.3 billion won.

The prosecution sought eight years in prison plus a fine of
55 billion won.  The chairman's father and founder of
Korean Air, Cho Joong-hoon, 80, was also implicated, but
prosecutors did not indict him because of his age and poor
health.

The chairman's 46-year-old brother, Cho Su-ho, chairman of
Hanjin Shipping, was indicted. He is on trial separately.
The Chos were charged with receiving US$960 million in
rebates when they purchased aircraft from Boeing and Airbus
between 1997 and 1998, and evading taxes on the money.
They allegedly used part of the money for private spending.

Prosecutors earlier said the three admitted to most charges
and asked for leniency.  The tax evasion, which involves
Korean Air and three units of its parent company, Hanjin,
was the largest ever in  South Korea, according to
prosecutors. (South China Morning Post  11-Feb-2000)

SAMSUNG MOTOR: Renault after support for initiative
---------------------------------------------------
Renault, France's second- largest car maker, which is in
talks to buy insolvent Samsung Motor of South Korea, met
suppliers and unions at Samsung's Pusan plant in an effort
to gain their approval for the purchase.

Georges Douin, Renault's executive vice-president of
international operations, met Samsung managers, suppliers
and union leaders in the first visit by a senior Renault
executive since the companies initiated talks late in
December.

Renault needs the support of the unions and suppliers to
avoid the opposition other car makers have met when trying
to buy Korean companies. Daewoo Motor employee
representatives and parts suppliers have threatened action
against moves by General Motors and Ford Motor to take over
Daewoo.

"All the parties must agree to this plan if it's going to
succeed," said Didier Orand, an analyst at Wargny Societe
de Bourse in Paris. "Douin wouldn't have made the journey
if he didn't think Renault had a good chance of success."

Mr Douin told the suppliers the French car maker may
continue to make the SM5 sedan for two years if it acquires
the Korean company, Samsung Motor official Seong Kun Je
said. The SM5 was the only model Samsung Motor produced at
the time it went bankrupt.

"Douin hinted at an ongoing production of our car model,"
Mr Seong said. A Renault official declined to comment on
the meeting.

Mr Douin also met Samsung Motor managers during his visit,
Mr Seong said.  Korean creditors are trying to sell Samsung
Motor by April to help banks and other financial
institutions recover what they are owed. (Hong Kong
Standard  11-Feb-2000)

SAMSUNG MOTORS: Renault sweetens buy offer
------------------------------------------
French auto giant Renault SA yesterday promised to operate
Samsung Motors' plant at full capacity should it take over
the ailing South Korean automaker, officials of Samsung
Motors said.

"They said they would contribute to the country's economy
by fullyoperating the plant," a spokesman of Samsung Motors
said from the southern portcity of Pusan during a visit by
Renault.  "They also said they found workers were well
trained and suppliers are ofhigh quality, making Samsung
Motors an attractive target for acqusition," he said after
Renault held a presentation session at the plant.

Some 80 representatives from Samsung Motors, the Pusan City
government andSamsung Motors subcontractors attended the
briefing session carried out by a10-member team from
Renault.  Renault has been carrying out a due diligence
study on Samsung Motorssince October 17, and is scheduled
to complete its investigation by the end ofthis week, the
spokesman said.

Renault has yet to officially present its terms, but
reports here have saidit had indicated it would offer only
400 billion won (355 million dollars) fora stake of about
70 percent, with Samsung retaining up to 30 percent. The
company's value is estimated at one trillion won ($889
million),according to South Korean newspapers.

Sources familiar with the low-profile negotiations here
said talks wereprogressing well and that Renault's
acquisition of the firm stood a chance ofsucceeding by
April.  Renault reportedly hopes the deal will give the
French car giant a footholdin the inaccessible but booming
Korean car market which could see it take afive to 10
percent market share.

In addition, Renault may later consider exporting some of
the locally produced cars to Japan - where the French firm
maintains a 36.8 percent stakein Nissan Motors - to save on
labour costs, another source suggested. Samsung, which
produced only one saloon model, started up with Nissan
technology in early 1998 at the height of South Korea's
economic crisis. (Business Day  11-Feb-2000)


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

BW RESOURCES CORP.: PSE's findings still inconclusive
-----------------------------------------------------
The 16-man board of governors of the Philippine Stock
Exchange has not come up with any conclusive findings yet
on the results of the year-long investigation of
controversial gaming stock BW Resources Corp.

PSE governor Margarito Teves said the governors reviewed
the report made by the PSE's Compliance and Surveillance
Group (CSG) and discussed the procedures that would be
taken before it submits the final report to the Securities
and Exchange Commission.

"I think they needed more time and would have to wait until
tomorrow," Teves said. The board, the highest policy-making
body of the PSE, will meet again at five o'clock today.

The BOG meeting started at around 2:30 p.m. and wrapped up
by five o'clock. Media people were kept waiting until about
7 p.m. before the last members of the board, including PSE
president Jose Luis Yulo, emerged.

Teves said due to the time constraints, they were not able
to discuss other matters such as possible sanctions if some
of the parties were indeed involved in the high-profile
case that was loaded with accusations of price manipulation
and insider trading.

The SEC has given the PSE 90 days from Nov. 11, 1999 to
complete the investigation on possible trading violations
of BW Resources. With the CSG working overtime and due to
political pressures to hasten the probe, the final report
would be finished by the end of the working hours today, or
64 days from the SEC's directive.

The CSG and the Business Conduct and Ethic Committee
(BCEC), which will recommend and implement possible
sanctions, shall only submit its final report to the PSE
president, the SEC and to those required by law or required
by the authorities such as the Senate and the Department of
Finance.

Unconfirmed reports indicate that some of those involved in
the BW trade, particularly the brokerage firms, were found
"guilty beyond reasonable doubt," of engaging in washed
sale and price manipulation, hence face expulsion from the
Exchange. (The Philippine Star  11-Feb-2000)

BW RESOURCES CORP.: 8 brokers tagged in alleged stock fraud
-----------------------------------------------------------
At least eight traders and brokers, including the president
of BW Resources Corp. and some governors of the Philippine
Stock Exchange, were found to have manipulated the stock
price of the gaming firm.

This was the main finding of the six-inch-thick report
prepared by the PSE compliance and surveillance department
which was expected to be submitted in the next few days to
the Securities and Exchange Commission and the Senate
committee on banks and financial institutions.  At least
three sources who have seen the report said the paper trail
of transactions involving BW shares showed there were
"serious" violations of Sec. 26 of the Revised Securities
Act covering price manipulation.

The sources described the much-awaited report as
"explosive."  The sources said they merely wanted "to
protect the integrity of the BW report and the PSE
officials who conducted the probe."

Sources said businessman and presidential ally Dante Tan,
who has a controlling stake in BW Resources, was only "at
the periphery" of the investigation.  According to them,
seven PSE investigators focused on the trading activities
of big brokers and stumbled upon the stock transactions of
BW Resources president Eduardo "Moonie" Lim Jr.  The
investigators found that Lim, who is also a licensed
trader, had been buying and selling big volumes of BW
shares in violation of SEC regulations on insider trading.

The same sources said that Belson Securities Inc. was one
of three brokerage firms found to have committed "serious"
violations of SEC and PSE rules.  Belsons is owned by Lim's
father and PSE chair-emeritus Eduardo Lim Sr.  The elder
Lim's brother is Federico Lim, the president of Belsons.
Federico, who also chairs the PSE business conduct and
ethics committee, is a member of the 15-member PSE board.
Federico inhibited himself from the board's discussions of
the PSE report yesterday.

Sources described as "heated" and "stormy" the meeting
presided over by PSE chair Trinidad Kalaw. The five-hour
meeting, which ended a little past 7 p.m., was not able to
agree on how "to package" the report, according to the
sources.  They said some of the governors wanted "to tone
down the report," while others insisted that "the report be
presented as it is."

The board is scheduled to meet again today at 5 p.m. at the
Tektite headquarters of the PSE in Ortigas. Feb. 11 is the
deadline for the submission of the PSE report to SEC Chair
Perfecto Yasay Jr.

The PSE and the SEC launched separate investigations
following the spectacular rise and sudden fall of the BW
stock. The stock rose from P1.98 per share at the start of
1999 to a high of P107 on Oct. 11 last year when the
company named Macau gambling tycoon Stanley Ho as its board
chair.  The stock has since plummeted, closing at P7 per
share in yesterday's trading.

The investigation generated a lot of interest here and
abroad after Yasay told the Senate committee on Jan. 19
that President Estrada had pressured him into clearing
Dante Tan.  Mr. Estrada denied Yasay's allegations, but
admitted talking to him over the phone on several occasions
regarding the BW case.

A word war ensued between the two officials. Yasay
announced earlier this week that he was definitely
resigning as SEC chair effective March 25.  But Yasay
promised to finish the SEC investigation of BW effective by
that time.  Sen. Raul Roco, head of the Senate committee on
banks and financial institutions, is also conducting an
investigation of BW in aid of legislation. Pending before
his committee are proposed changes to the Revised
Securities Act.

Sources said the manipulation of BW stock involved such
schemes as "wash sale," "kiting" and "churning."  A wash
sale involves the buying and selling of shares in which
there is no actual transfer of ownership. The aim is to
create an impression of heavy trading and lure investors to
come in and push the price up.

Sources said there was also evidence of kiting, a scheme in
which a stockholder sells his shares to a broker under a
special buyback arrangement to get cash even before
clearing and settlement date.  When the buyback date is
due, the stockholder will then sell the same shares under a
similar arrangement with a second broker to get cash to pay
for the first broker.  Sources said the brokers involved in
the illegal transactions face stiff administrative
sanctions, such as suspension or expulsion from the PSE.

But they said the PSE would leave it to the Senate and the
SEC to verify the report and take further action against
the erring traders and brokers.  Brokers found guilty of
stock manipulation and insider trading face imprisonment
from seven to 21 years.

Sources said the report would leave Dante Tan's fate to the
SEC.  Tan has insisted that he was a victim and that he had
been a net buyer of BW stock even when its share price rose
to over P100. Tan is a close friend of Mr. Estrada, having
supported his presidential campaign in 1998.

Tan has admitted maintaining accounts in such brokerages as
Belsons Securities, A. T. De Castro, Angping and
Associates, PCCI Securities, Jaka Securities and Wealth
Securities.  Sources, however, voiced fears the PSE report
would be watered down as it involved some PSE governors.
They said there were cases in the past in which PSE
department heads were "pressured into resigning" by brokers
who were displeased by their investigations.

"We will not be surprised if heads of PSE investigators
roll after the report is done," one source said.
(Philippine Daily Inquirer  11-Feb-2000)

BW RESOURCES CORP.: BW's Tan hits back at brokers
-------------------------------------------------
As the Philippine Stock Exchange wraps up its probe on
alleged insider trading and price manipulation of shares of
BW Resources Corp., its controversial chair Dante Tan
charged the member-brokers of ganging up on him after
profiting from the massive stock transactions generated by
the rife speculation on his on-line bingo company.

Tan said he felt betrayed after BW generated roughly P30
million in daily commissions for brokers and P15 million in
taxes for the government from the estimated P3 billion in
average daily transactions of BW shares last year. "They
(brokers) told me they never made this much money in the
last 10 years," Tan said.

Before BW's sudden fall after reaching a peak of P107 on
Oct. 11 from only P2 at the start of the year, Tan was
widely lionized by the stockbrokers as a life-saver after
deals in the market have thinned out as foreign funds
reduced their holdings in Philippine equities.  The PSE
even invited Tan's partner, Macau casino tycoon Stanley Ho,
to ring the bell at the PSE trading floor in Ayala on Oct.
11 which was unusual considering that only owners or top
officers of new public listings were allowed this
privilege.

But since BW's fall from grace (its stock has crashed P6 to
P7 per share) and mounting criticism on Ho's gambling
operations and alleged Triad connections, brokers have made
a turnaround and distanced themselves from Tan and his
company.  Tan and some of his broker-allies are being
accused of driving up the share prices of BW through a
series of buy-back deals.

Tan has denied these accusations, claiming he did not have
the billions of pesos people have accused him of to
manipulate the shares. His advisers alleged that if ever
there were shady dealings involving BW, "Tan was not part
of it, Tan was not involved in it, and Tan did not profit
from it."

"I will shoot myself if they can prove that I sold a single
share on Oct. 11 when the price reached a peak of P107. If
my intention was really to make money, I could have cashed
in when the price peaked at P100-plus but on that day, I
continued to buy and in the process plowed in P2 billion,"
Tan said.

Tan bemoaned the probers' decision to focus on his buy and
sell transactions without looking at the other aspects of
the case. "I could have easily made billions at any one
point when the stock was trading between P2 and P100 but I
didn't because I believe in the fundamentals of the
company," Tan said.  "Give me few weeks or months and I
will prove to all that BW will deliver on its promise,"
said Tan, who maintained his undying faith in on-line bingo
to deliver billions in pesos of revenues not only to
shareholders but also to government in the form of
revenues.

Tan earlier insisted that the wild gyrations of BW
Resources share prices were market-driven that left him
about P2 billion in losses on the day Macau gambling tycoon
Stanley Ho assumed the chairmanship of the company on Oct.
11.  But "someone obviously made money," Tan told INQUIRER
editors last month.

The PSE report on the BW controversy is expected to lead to
heavy sanctions against a number of brokers who dealt
heavily in the gambling firm's stocks.

"Gusto nila akong idiin (They want me to take the rap)....
Someone has to take the blame, Tan said when asked that
night about the probe of BW by the Securities and Exchange
Commission (SEC). "I violated no law. I paid every invoice
I bought on time," said Tan who admitted to owning about 10
to 15 percent of BW Resources. Tan, 49, said the President
had nothing to do with the trading of BW shares. "But it so
happened that he knew that I was the victim."

Tan said he lost a lot of money last October because he
kept buying BW shares to show Ho and four other big Hong
Kong businessmen who expressed interest in investing in BW
Resources that he believed in the company.

"I don't want BW shares to go down and lose face. So I was
forced to buy," he said in Taglish. Tan said he could not
have been the manipulator of BW share prices as he was
buying shares even when these hit P100. "Why can I be the
manipulator when I was buying it at P100?" he asked.

He said he did not unload his shares even when prices were
plunging because he did not want to be accused of
manipulating the shares. Moreover, he said selling his
shares would just encourage others to dump theirs.
"Although it was hurting me, I did not sell," he said.

Tan said his intention was not to sell and make money but
to accumulate shares. But in the process he became the
biggest victim, Tan said. "I shouldered everything and I
lost money," he said. He said he became a victim because he
was a newcomer in the stock market.

Tan belied allegations that he was involved in the
manipulation of BW share prices. He said he neither engaged
in "inside trading" nor "wash selling" to push the price of
BW shares up. "There is no insider trading because we
disclose our plans to the Philippine Stock Exchange (PSE),"
he said. "There is insider trading if we do not disclose."
Insider trading is the acquisition of shares by an officer
or executive of a company who has advanced information on
company plans on say a merger or expansion. The practice is
illegal.

On wash selling, Tan said "no one in his right mind will
sell P2 billion and buy it back" as the P4-billion
transaction would entail the payment of about P100 million
in broker's commissions and transfer taxes. "Wash sale"
refers to the simultaneous buying and selling of shares of
the same stock to create an artificial volume of
transactions. The illegal practice is aimed at influencing
the market to go up. From P2.04 in January 1999, BW shares
rose to P107 on Oct. 11 after Ho accepted the offer from
Tan to become the chair of BW Resources. Many investors
suffered heavy losses when the stock plunged to P68 the
following day. BW closed at P7.30 yesterday.

The sharp rise and decline of BW share prices have prompted
the SEC, PSE and Senate committee on banks and financial
institutions to look into the alleged stock manipulation.
Tan's role in the alleged stock manipulation became front
page news after SEC Chair Perfecto Yasay told the Senate
committee that President Estrada had pressured him to stop
the SEC probe. Yasay said the President had also pressured
him to clear Tan, a donor to Mr. Estrada's 1998
presidential campaign, of any wrongdoing.

Tan said that when Ho came to Manila he instructed his
brokers to buy shares "anything P100 and below." On Oct.
12, Tan accompanied Ho to Malaca¤ang and the PSE. "That day
I knew I would be busy and would not be able to monitor the
market," Tan said. But he did not expect his brokers to buy
shares worth P2 billion.

"I was shocked I bought P2 billion," he told the INQUIRER.
"I bought P2 billion worth of shares on Oct. 11. On that
day, I lost P2 billion," he said. Tan said he lost because
some traders had read his mind. "When I'm ready to buy,
they're ready to sell.'' He said the BW stock price rose
rapidly because everybody was buying the stock in
preparation for Ho's entry into the company. Tan said the
signal for the traders to unload came when Ho visited
Manila. "I would like to believe that this was due to the
free market," he said.

An initial finding of the Senate committee said BW
Resources president Eduardo C. Lim Jr. may have engaged in
insider trading when Belson Securities, where he sits as a
board of director, bought and sold BW shares. Sen. Raul
Roco, chair of the committee, said Belson Securities bought
300,000 BW shares on May 31, 1999, jacking up the price
from P4 to P12. A month later, Belson Securities unloaded
the shares at P27. Lim denied any wrongdoing. He said he
gave up his seat on the Belson board years ago. (Philippine
Daily Inquirer  11-Feb-2000)

BW RESOURCES CORP.: SEC threatens to compel report copies
---------------------------------------------------------
The other commissioners of the Securities and Exchange
Commission said they would compel the Philippine Stock
Exchange to furnish them with copies of the bourse's report
on the alleged price manipulation of BW Resources Corp.
that was due for submission yesterday to SEC Chair Perfecto
Yasay Jr.

Yasay had said that he would keep the PSE report a secret
and would not give a copy to the Office of the President,
the Department of Finance or even the SEC's four other
commissioners in order to prevent possible political
interference.

An SEC official said that the four commissioners would
direct the SEC prosecution and enforcement division to hold
off its investigation until each has been given a copy of
the report.

In a news briefing, SEC Commissioner Danilo Concepcion said
that under PD 902-A, all investigations of the prosecution
and enforcement department were subject to the control of
the commission en banc and not just the SEC chair, who has
direct supervision over the department.  SEC Commissioner
Edijer Martinez also asserted that all the commissioners
should be furnished a copy of the report.

"The commission can direct the manner of investigation,
modify or reverse the findings that is why it was made
collegial," Concepcion said.

The report may or may not implicate member-brokers of the
PSE and a close friend of President Estrada in price
manipulation or insider trading. The share price of BWRC
rocketed from P1.98 per share in the beginning of last year
to a peak of P107 per share on Oct. 11 before plunging the
succeeding days.

Once the SEC receives the PSE report, it is expected to
forward it to the PED to validate and verify the findings.
The commission has committed to wrap up its investigation
of the controversial issue by March 10, or a month after
the submission.  After the deadline, the SEC should come up
with recommended administrative sanctions or criminal
charges against those who might have been found to be
involved in price manipulation or insider trading, an SEC
official said.  (Philippine Daily Inquirer  11-Feb-2000)

DOMESTIC SATELLITE PHIL.: Court stops asset foreclosure
-------------------------------------------------------
The Supreme Court yesterday stopped the government from
foreclosing on the assets of the Domestic Satellite
Philippines, Inc. (Domsat) to pay off a $20-million debt to
Philippine National Bank (PNB) which remains unpaid for
nearly 20 years.

In a decision, the High Tribunal second division also
ordered the Antipolo Regional Trial Court to resolve the
legality of the seizure of Domsat's equipment and machinery
and 14 land parcels in favor of PNB.

The Court dismissed the contention of the Asset
Privatization Trust (APT) that being a sequestered firm,
only the Sandiganbayan, the country's anti-graft court, and
not the lower court, has jurisdiction over the foreclosure
issue.

The APT, an entity created by virtue of Proclamation 50, is
mandated to manage and dispose of sequestered assets.
The anti-graft court's exclusive hearing authority, the
Court clarified, is limited to 20% sequestered outstanding
shares controlled by Marcos cronies Roberto S. Benedicto,
Jose Victor and Alfredo Africa.

"It is important to note that what was sequestered was not
Domsat itself or the business of the company, but rather
the shares (of the aforementioned persons)," said the
Court, through Associate Justice Josue N. Bellosillo.

Japanese trading company Marubeni Corp. granted Domsat, a
satellite-based telecommunications and satellite broadcast
network, a $16.5-million foreign loan in 1977 to finance
establishment and operations.  PNB secured the loan after
Domsat mortgaged all equipment purchased from Marubeni and
14 lots, worth 123.4 million Philippine pesos (US$3 million
at PhP40.403:US$1), used as sites for its earth stations.

The controversy arose after former President Corazon C.
Aquino mandated PNB to transfer all its nonperforming
assets to APT in 1986.  Domsat was among the firms PNB
turned over to the APT. As of 1986, the government's
receivables from Domsat already reached more than PhP1
billion ($24.6 million), including interests and penalties.
Domsat refused to settle its obligations despite repeated
demands, prompting APT to foreclose Domsat's mortgaged
properties.

After several postponements, some of the properties,
excluding the land, were sold in a public auction in
January 1991. APT was the highest bidder, shelling out
PhP42.7 million ($1 million) for all machinery and
equipment.  Domsat immediately challenged the validity of
the sale and sought payment of damages totaling PhP1.1
million ($27,000).

The case eventually reached the Supreme Court in 1992.
The Court found certain irregularities that attended the
auction, including the indicated location of the foreclosed
properties.  The chattel mortgage certificates said the
properties were located in Makati. Seized properties were
taken from Antipolo.  The Supreme Court said the trial
court should thresh out these irregularities in determining
whether the assets have been properly turned over to the
APT. (Business World  11-Feb-2000)

PDCP BANK: Metro Pacific to infuse P2.5B in banking unit
--------------------------------------------------------
Metro Pacific Corp. is expected to infuse P2.5 billion into
its banking arm, PDCP Bank, to raise its capital base to
P3.65 billion this year.

In a statement released yesterday, PDCP Bank said the
capital infusion would follow a series of restructuring
initiatives designed to clean up the bank's balance sheets.
PDCP Bank suffered significant losses last year and this
put pressure on its operating performance.

Following the system-wide drop in lending in 1999, PDCP
Bank's gross interest income fell 48 percent compared to
previous year level. The bank's loan portfolio was reduced
from P7.7 billion at the end of 1998 to P6.9 billion at the
close of 1999 as a result of selective lending, the
statement said.

In preparation to the capital infusion, PDCP Bank booked an
additional loan-loss provision amounting to P313 million
which contributed to the net loss of P1.0 billion during
the year. PDCP Bank cut its expenses by 46 percent by
prudent loss provisioning.

However, the bank said that its operational expenses were
substantially reduced and the lowering of interest rates
paid on deposits resulted in interest expenses falling by
27 percent.  The bank experienced a 26.34-percent increase
in deposit levels, finishing with P10.435 billion at
yearend. This followed the successful introduction of
several electronically based deposit facilities and
services.

With the cleanup of its balance sheet and the infusion of
capital by Metro Pacific, which is a 35-percent
shareholder, PDCP Bank is looking at positioning itself at
the forefront of electronic banking.  In a joint venture
with PLDT, PDCP Bank announced the launch of an Internet-
based payment system at the end of last year and at the
start of this year unveiled the first mobile-phone banking
services in the Philippines in cooperation with Smart
Communications Inc. (Philippine Daily Inquirer  11-Feb-
2000)

PHILIPPINE NAT.BANK: Gov't eyeing lower net sale proceeds
---------------------------------------------------------
The government may have to cut anew its eight-billion-peso
(US$198 million at PhP40.403:US$1) revenue target from the
impending sale of the Philippine National Bank (PNB) next
quarter to reflect the possible adverse results of an audit
it had recently commissioned.

In yesterday's interview in Malaca¤ang, Bangko Sentral
(Central Bank of the Phils.) Gov. Rafael B. Buenaventura
admitted the floor price for the National Government's
soon-to-be-sold 30% stake in PNB may be significantly
affected by the "not very glowing" results of the audit on
PNB's books conducted by Price WaterhouseCoopers and Lehman
Brothers.

"Reportedly, the audit is not very glowing. So that might
affect the price of PNB. We will have to see what it looks
like. That might affect the price of PNB," Mr. Buenaventura
told BusinessWorld.  "I recall (former Finance Secretary
Edgardo B.) Espiritu saying the audit report was very
pessimistic, so that will definitely have an impact on the
valuation of PNB."

He said it will thus be difficult for the government to
estimate the proceeds from the sale this early, pending the
official release of the audit report.  The monetary chief
also said PNB's high bad loans ratio -- "twice that of the
banking system's average" -- "will have an effect on their
profitability and also on the valuation."

As of December 21, PNB had among the highest levels of
nonperforming loans (NPLs) in the banking industry, equal
to 29% of its total loan portfolio. Sources said the level
has been "severely understated" and actually stood at 40%.

While admitting the sale will be difficult for the
government, Mr. Buenaventura and Finance Secretary Jose T.
Pardo have both assured the World Bank it will be
transparent.  Mr. Buenaventura also said the government is
preparing the certification the World Bank has required
before releasing the $100-million loan for a banking sector
reform program.

"(WB) asked for that and we have asked the PNB corporate
secretary to identify who are the buyers, the current
stockholders of PNB. I think the World Bank wants to make
sure that if the government sells, that it be sold in a
transparent manner. That's why they wanted an assurance
from the government. Of course, both Sec. Pardo and I have
assured them that the sale will definitely be transparent,"
Mr. Buenaventura said.

BusinessWorld earlier reported the World Bank's concern
over the "legality" of the acquisition of Chinese-Filipino
tycoon Lucio Tan of a majority stake in PNB and its effect
on the sale of the government's remaining 30% stake.

Whatever the results of the audit, analysts said there
would be little appetite among investors for the
government's PNB stake.  Based on PNB's statement of
conditions in December, the government shares are valued at
PhP7.28 billion ($180.2 million), but the Estrada
administration wants PhP8 billion from the shares.

Investors, however, are not expected to bite since the
government has already lost control of PNB to Mr. Tan, who
now owns four of the 11 seats in the bank's board.  An
analyst at a local brokerage said the government's decision
to delay the release of the audit report has added to the
market's pessimism about PNB.

"The assumption is that the results were probably worse
than expected because why else did they delay it?" the
analyst said.

The government, citing differences between local and
international accounting practices, said it would ask the
Bangko Sentral to review the audit. PNB's new management
has also requested Finance officials for more time to study
the audit report.  Paribas Asia Equity, Inc. senior analyst
Edgar R. Bancod said PNB's loan loss provisions may be
adequate if the bulk of its NPLs are seen as substandard,
which means PNB should set aside 25% of the total loan
amount to cover the potential loss.

He said PNB will have to increase its loan loss provisions
if the majority of NPLs are considered doubtful or a loss,
further eroding its profitability.  PNB set aside set aside
PhP7.349 billion ($181.9 million) in loan loss provision in
1998, but the buffer was cut last year. The bank had set
aside PhP681.8 million ($16.9 million) in loan loss
provisions in the first nine months of 1999. (Business
World  11-Feb-2000)

UNIWIDE HOLDINGS: Stock to resume trading Mar. 1
------------------------------------------------
Shares of retailer Uniwide Holdings Inc., which had sought
the suspension of its shares, will resume trade on March 1,
the Philippine Stock Exchange said yesterday.

Trading in Uniwide shares had been suspended since February
7 due to negotiations with the Casino Group, a French
retail firm. Under a memorandum of agreement, Casino will
acquire the controlling stake in Uniwide's warehouse-type
stores.

The details of the agreement were still being drawn up but
Finance secretary Jose Pardo said yesterday that the Casino
Group, has agreed to invest $100 million in Uniwide. Pardo
said the DOF had officially received last Monday a copy of
the agreement signed in Paris that paves the way for the
entry of the French group into the country. (Manila
Bulletin  11-Feb-2000)


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

CLOB INT'L: Melewar offer papers due out in 10 days
---------------------------------------------------
Intang Melewar will send its offer document to holders of
Malaysian shares formerly traded on Clob International
within 10 days but the Kuala Lumpur Stock Exchange has yet
to agree to its scheme to stagger the release of the shares
over 14 months.

The vehicle of Negri Sembilan prince Tunku Abdullah said
yesterday that Singapore Exchange's Central Depository
(Pte) Ltd -- the temporary omnibus account holding the
shares for 172,000 investors -- has "indicated that it has
no objections circulating the offer document to Clob
investors when they are in order."

Neither officials from the CDP, Singapore Exchange nor
Bintang Melewar spokesman Tunku Iskandar could be reached
for comment last night. Bintang Melewar said the Securities
Investors Association (Singapore) -- the group representing
over one-third of the Clob investors -- has accepted its
proposal as "part of a comprehensive solution" to the Clob
impasse.

In a swift response, SIAS president David Gerald said:
"We're pleased to hear that CDP has given its approval for
the circulation of the offer to Clob investors." Bintang
Melewar said the implementation process of its proposal
will comply with the procedures and guidelines set by the
KLSE and its Malaysian Central Depository (MCD).

However, in a sign that Malaysian authorities may balk, BT
received indications that the Malaysian exchange would
maintain its earlier stand that only rival Effective
Capital's offer has complied with all its securities rules
and laws.

"CDP can distribute Bintang's offer document but nothing
will be done. The accounts will not be released," a senior
Malaysian official said. Officially, the KLSE declined to
comment on Bintang Melewar's statement.

Effective Capital is the vehicle of Singapore-based
businessman Akbar Khan whose proposal calls for the entire
process of registering the shares and staggering their
release to take 22 months with a 2 per cent fee charged
based on Dec 22 prices, double the Bintang Melewar rate.

Bintang Melewar said yesterday it has appointed Malaysian
International Merchant Bankers Berhad (MIMB) as the
custodian for the migration of the Clob shares -- now worth
almost 19 billion Malaysian ringgit (S$8.5 billion) -- into
the individual accounts.

"MIMB will effect the transfer of securities of accepting
Clob investors strictly in accordance with the procedures
and guidelines laid down by the MCD," Bintang Melewar said.

The Malaysian company went on to say that it has addressed
two main concerns in its bid to break the impasse over the
shares formerly traded on Singapore's over-the-counter
market Clob International. Bintang Melewar said under its
graduated scheme, each transfer will not amount to more
than 0.04 per cent of the total market capitalisation of
the KSLE.  At the KLSE's current market size of RM696
billion, that works out to each proposed batch being less
than RM280 million.

"This should allay any fear of the proposal having any
market impact," Bintang said. Clob investors' interest of
liquidity and marketability of the shares.

In essence, Bintang Melewar will release the shares over 14
months -- three-and-a-half months to register the investors
at MCD and another 10-and-a-half months to release the
shares in batches, starting from June this year. In
exchange, it will collect a fee of 1 per cent based on the
value of the investors' portfolio on Dec 30, 1999. The
closing date of the offer is March 3.

Bintang Melewar added: "We invite all Clob investors to
accept our offer and get on with the trading on the KLSE
market in due course. Clob investors will have the liberty
to decide the timing of the sale of their shares once their
shares are migrated into their accounts."

While the prince could secure all the necessary approvals
in Singapore, the question is whether he can overcome
expected hurdles in Malaysia. The Malaysian authorities are
still more comfortable with Effective Capital's plan to
release all the shares in weekly batches over 18 months
after an initial four months to register the investors with
MCD.

Furthermore, Effective's Mr Akbar is a close associate of
Malaysian Finance Minister Daim Zainuddin.  Effective
Capital's chief executive officer Mohamed Moiz told BT last
night that it would review its offer's closing date of Feb
22.

"Further to our last meeting with CDP on Feb 2, we have
been informed that the document will be dispatched late
this week or early next week," he added.  (Singapore
Business Times  11-Feb-2000)


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

CHAROEN POKPHAND FOODS: To issue bonds to pay foreign debt
----------------------------------------------------------
Charoen Pokphand Foods Pcl, South-east Asia's largest
producer of animal feed, said it would sell up to 7 billion
baht (S$314.9 million) worth of bonds on March 9 to help
repay foreign debt.

CP Foods said in December it would probably fund settlement
of US$270 million (S$456.6 million) of its foreign currency
debt by selling bonds. The unsecured bonds would have a
five-year maturity.  The interest rate for the first three
years was fixed at 7.5 per cent per annum. For the fourth
and fifth years, the rate will be the Bangkok Bank's six-
month fixed deposit rate plus three percentage points.
Bangkok Bank has been appointed the underwriter of the
bonds.

Interest rates on savings accounts offered by banks now
range between 2.5 and 2.75 per cent while those on fixed
deposits are between 2.75 and 3.75 per cent.  To make the
bonds attractive, CPF will commence repaying principal in
the third year from the date of issue on a half-yearly
basis.

The company said most of the funds raised would be used for
refinancing its foreign currency debt, while a smaller
portion would be reserved for future business plans. CPF
has Floating Rate Notes worth US$100 million due for
redemption in August this year.

The company recently completed its consolidation with other
11 Charoen Pokphand Group affiliates engaged in the animal
feed industry to cut operating costs.  In the first nine
months of 1999, CPF reported net profit of Bt3.30 billion,
boosted by lower operating costs and the repayment of part
of its debts as well as the completion of the
consolidation.  (Singapore Business Times  11-Feb-2000, The
Nation  10-Feb-2000)

DBS THAI DANU BANK: Stock falls on shareholder unrest
-----------------------------------------------------
DBS Group shares fell yesterday as investors unloaded the
stock on concerns of higher provision over its Thai
subsidiary.

The stock closed 90 cents lower at $21.10, with 12.7
million shares traded.  With yesterday's sell-down, DBS has
now fallen 27 per cent in less than two months from its Dec
20 high of $28.80.  Last month, DBS Thai Danu Bank (DTDB),
in which DBS has a 50.3 per cent stake, posted full-year
loss of 13 billion baht (S$587.9 million) against a loss of
9.1 billion baht previously. This follows more provisions
and write-offs, totalling 9.4 billion baht, for bad loans,
up from 7 billion baht previously.

A DBS Bank spokesperson told BT then that the need for
additional provisions for DTDB at the DBS Group level was
being reviewed, and as in past periods, it expects to
continue the bank's conservative approach to provisioning.
If further provisions are made for DTDB, it will not be the
first time that DBS management has to backtrack on its
words that no more provisions need to be made for DTDB as
it had licked the non-performing loan problems at the Thai
unit.

DBS' cumulative specific provisions against DTDB in 1998
totalled 25 billion baht.  In recent weeks, DBS has been
giving guidance to analysts that 1999 full-year earnings
are "within expectations" and that provisions in the
second half would likely be higher than the $336 million
made in the first half.  Stephen Frost of HSBC Securities
told BT that he expects provisions for the full year to be
$700 million, against $1 billion made in 1998.

"There's concern DBS can't hit S$1 billion in profit
because of the bigger provisions made for Thai Danu," said
Lim Beng Eu, a banking analyst at Vickers Ballas Investment
Research.

Other than concerns over DBS' results, funds are also
exiting Singapore for the more exciting Malaysian market,
hurting DBS shares in the process.  "I now see DBS as a
trading stock. Buy when it falls to $21 and sell at $25,"
Mr Frost said. (Singapore Business Times, Business Day  11-
Feb-2000)

SINN BUALANG PLC: Seeks court assistance on rehab plan
------------------------------------------------------
Sinn Bualuang Plc yesterday asked the Central Bankruptcy
Court to implement a business rehabilitation plan to
restructure its debts of 8.3 billion baht.

At the end of January, the debts included outstanding
interest of 900.5 million to 14 creditors.  The court will
hear the rehabilitation proposal on March 6.

Sinn Bualuang operates a range of businesses, including
hire-purchase, leasing and cheque discounting. The company
also provides office cleaning and security services,
Automatic Teller Machine services and land management.
Companies controlled by the Sophonpanich family, founders
of Bangkok Bank, hold over 40% in Sinn Bualuang. Bangkok
Bank holds a 10% stake in Sinn Bualuang, according to bank
president Chartsiri Sophonpanich.

He declined to say what further support might be offered to
Sinn Bualuang. Further study was required to determine its
future business prospects.  Deja Tulananda, a Bangkok Bank
director, said the bank had some loans out to Sinn
Bualuang, but was not a major creditor.

Sinn Bualuang said in its court petition that its financial
position had been adversely affected by exchange rate
fluctuations.  Loans were primarily denominated in foreign
currencies, against baht-denominated assets, mostly in the
form of long-term leasing and hire-purchase contracts.
Sinn Bualuang said more than 85% of its creditors had
approved the swap of its foreign liabilities into baht.
Debt would be repaid over a two-year period, the company
said.

Sinn Bualuang grew rapidly in the mid-1990s, as the company
expanded with a goal of entering the Stock Exchange of
Thailand, sources said.  Restructuring could take the form
of a debt-to-equity swap or a sell-off or transfer of
assets to retire debt, the sources said, declining to be
named. (Bangkok Post  11-Feb-2000)

STATOIL ASIA PACIFIC PTE: Reports to SET on legal dispute
---------------------------------------------------------
Please be advised that Statoil Asia Pacific Pte.Ltd.
Singapore (Statoil) has filed a lawsuit to the Central
Intellectual Property and International Trade Court
alleging that the Company has breached a contract for
failure to make payment to Statoil for goods and requesting
the Court to order the Company to make payment for goods in
the amount of approximatety Baht 230,950,770.78, exclusive
of interest.

However, because Statoil has first breached a purchase
agreement with the Company, the Company therefore filed a
counter claim against Statoil demanding Statoil to pay
damages to the Company in the total of approximately Baht
337,449,920. This legal dispute is now pending
consideration by the Central Intellectual Property and
International Trade Court. Report submitted by Phuangphet
Taweechaiwat, Deputy Managing Director, Statoil Asia
Pacific Pte.Ltd.  (Stock Exchange of Thailand  11-Feb-2000)

THAIOIL: Sells 40% Stake in Thai Carbon Product
-----------------------------------------------
Thaioil yesterday finalized the sale of its stake in Thai
Carbon Product (TCP), according to Chulchit Bunyaketu,
Thaioil Managing Director.

Chulchit said the sale was for $14 million, and the buyer
was Tokai, a Japanese company.  He said as a result of the
sale, Tokai has become a majority owner in TPC, holding 65
percent ownership share, while Siam Cement has 25 percent.
Bridgestone and Mitsubishi Corporation, meanwhile, owned 5
percent each.

TCP stake was part of Thaioil's preliminary business
restructuring plan, which directed the company to reduce
its financial burden, and improve cashflow through greater
liquidity.  Last week Thaioil sold its 25 percent interest
in Thai Oil Power (TOP) to PTTEP for $30 million.

Moreover, Thaioil is expected to sell its stake in Thai
Paracylene (TP) to PTT and Japan's Mitsubishi Group, after
which the Japanese group would own 49 percent, PTT would
have 31 percent, and 20 percent would be left to Thaioil.
Thaioil expects to finalize the debt restructuring plan
through the Central Bankruptcy Court by end of March.
The debt reform plan includes raising the capital debt for
equity swap amounting to $400 million. (Business Day  11-
Feb-2000)

THAI PETROCHEMICAL INDUS.: Plan objection stirs creditors
---------------------------------------------------------
Creditors of Thai Petrochemical Industry plc, which holds
the country's largest non-performing loan of $3.5 billion,
yesterday pressured the company to withdraw its objection
petition against a long-delayed debt restructuring plan
from the Central Bankruptcy Court.

According to the court, TPI filed a brief statement
yesterday morning that its objection petition submitted to
the court on Feb 8, 2000, contained certain deficiencies in
the essential points so it decided to withdraw.  The
objection to the debt restructuring plan was filed on
Wednesday. Since today is a public holiday, yesterday was
the last day for any petition before the court starts its
hearing on the TPI case on Monday.

However, Watcharaphun Promprasert, chief financial officer
of TPI, said the company had agreed to withdraw the
objection on condition that creditors meet TPI's 9-point
counter-proposal.  It was unclear yesterday if creditors
were really committed to the counter-proposal from the
debtor.

The counter-proposal includes commitment from creditors to
support a $1-billion equity raising plan and a bigger
haircut on unpaid interests, up from $400 million to $600
million.  A source on the creditor steering committee,
which represents the 148 Thai and foreign creditors of TPI,
said the company informed creditors of the withdrawal
yesterday afternoon.

On Wednesday, Deja Tulanond, a senior executive of Bangkok
Bank, said the debt restructuring plan could not be delayed
any longer and creditors might consider filing a bankruptcy
suit against the company if there were further delays.
International Finance Corp, Citibank and Bangkok Bank are
among the major creditors.

Prachai Leopairatana, major shareholder of TPI, has been
delaying the debt restructuring for more than 30 months.
The creditor source said the objection filing by TPI came
as a surprise to creditors after TPI on Jan 17, 2000 agreed
to the restructuring plan to tackle the $3.5 billion debt.
TPI has defaulted on the debt since July 1997.

The source said creditors are wary of the major shareholder
who seems to resort to various tactics to further delay
implementation of the plan, which is necessary to revive
confidence in the economy.

"The original plan was jointly drafted by the creditors and
debtor on advice from restructuring experts with written
statements from both sides to ensure that neither side
could break the agreement," said the source.

In response to the allegation that creditors intend to take
over the company, he said, there should be no such an
argument when both sides follow the restructuring plan
under court supervision.  On argument that the company
would not be able to settle all debts within 2003, he said,
the argument is not logical when considering the business
plans submitted by the company. (The Nation  10-Feb-2000)

THAI PETROCHEMICAL INDUS.:Creditor twists keep lawyers busy
-----------------------------------------------------------
Lawyers for Thai Petrochemical Industry danced in and out
of the courts yesterday in a bizarre turn of events in the
country's biggest, longest-running debt restructuring case.

On Wednesday, TPI rattled local financial markets by
submitting a protest to the court regarding certain details
of its $3.2-billion restructuring plan. The Central
Bankruptcy Court will consider the business rehabilitation
plan on Monday.

Yesterday representatives of five major creditors-Bangkok
Bank, International Finance Corporation, Bank of America,
US Export-Import Bank and Citibank-had lunch with TPI
executive Prachai Leopairat to discuss the objections.
Mr Prachai told creditors he would withdraw his objection
if they would amend conditions dealing with the
implementation of the plan, as well as include a buy-back
clause for new shares issued to the banks.

Creditors agreed to ease certain conditions, which Mr
Prachai said he wanted in writing by 3:30 pm yesterday.
At 3 pm, he asked his lawyers to withdraw the previous
day's objection from the court.  But after creditors failed
to submit a confirmation of the terms agreed to at lunch, a
new objection was lodged at 4 pm.  Mr Prachai said the
objection was necessary to protect the company's rights
during the court rehabilitation talks.

"I withdrew the objection at the request of the creditors.
But they refused to commit themselves to new terms, so a
new letter was sent to protect our rights," he said.

The rehabilitation plan calls for up to $1 billion in new
equity to be raised, including a debt-for-equity swap
issuing 835.7 million new shares.  Holders of convertible
debentures could also convert their securities for up to
5.5 billion new shares if terms and targets outlined in the
plan are breached over the next five years.

This could give creditors up to 75% control in TPI,
reducing the Leopairat family's stake to around 10%.
Restructuring talks for the huge industrial conglomerate
have stretched for more than two years.  Creditors have
accused Mr Prachai of reneging on terms agreed to months
ago. Mr Prachai, on the other hand, has accused creditors
of seeking to take control of the firm to dismantle its
assets. Shares of TPI on the Stock Exchange of Thailand
yesterday closed at 15 baht, down one, on turnover worth
46.33 million baht. (Bangkok Post  11-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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Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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