---

=09    T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

           Thursday, February 24, 2000, Vol. 3, No. 38

                            Headlines


* C H I N A  &  H O N G  K O N G *

FORLUXE SECURITIES: Judge to distribute shares


* I N D O N E S I A *

BANK INDONESIA: Sjahril vows not to step down =20
PT DHARMALA SAKTI SEJAHTERA: Reports on bankruptcy to JSX
PT FISKARAGUNG PERKASA: Reports bankruptcy progress to JSX


* K O R E A *

DAEHAN INVESTMENT TRUST: FSS to conduct probe til March 15
DAEWOO CORP.: Creditors write off more debts
DAEWOO MOTOR: Extends bidding period 2 days
HANA BANK: To borrow $350 million for debt paydown
KOOKMIN LIFE INS.: SK Group priority bidder
KOREA INVESTMENT TRUST: FSS to conduct probe til March 15
SAMSUNG MOTOR: Renault asks for more employees
SAMSUNG MOTOR: Renault to begin purchase negoitations


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

APO CEMENT CORP.: Having trouble servicing debts=20
ARMSTRONG HOLDINGS: Facing PSE probe
BW RESOURCES CORP.: Main shareholder to hold onto stake=20
BW RESOURCES CORP.: Tan wins battle, PSE digs in
DAVAO UNION CEMENT CORP.: Having trouble servicing debts       =20
HI CEMENT CORP.: Having trouble servicing debts=20
OMICO CORP.: Facing PSE probe
PHILWEB.COM: Facing PSE probe
REPUBLIC CEMENT CORP.: Having trouble servicing debts=20


* S I N G A P O R E *

CLOB INT'L: Impasse remains, offer not dispatched
L&M GROUP INVESTMENTS: To share business plans this week


* T H A I L A N D *

CHIANGMAI FROZEN FOODS: Stops acquisition after loss posted=20
GOLDEN LAND PROPERTY DEVELOPMENT: Posts 9-month loss=20
OM-SIN AMNUAY SUB FUND: Posts narrower annual loss=20
PIZZA PLC: Court leaning towards ruling in favor
SAMAKORN PLC: Posts huge annual loss=20
SIAM STEEL INT'L: Share trading suspended=20
THAI PETROCHEMICAL INDUS.: Creditors sell TPI debts=20
TRE-ATTHABOON GROUP: Creditors accept rehab plan
UNILEVER PLC: Major restructuring in planning


=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D
C H I N A  &  H O N G  K O N G
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D

FORLUXE SECURITIES: Judge to distribute shares
----------------------------------------------
A judge has been given the task of deciding how to=20
distribute $19 million worth of shares held by collapsed=20
Forluxe Securities and its finance arm.

However, the value of the shares held by the companies at=20
the Central Clearing and Securities System (CCASS) is=20
significantly short of the $66 million in total claims=20
submitted by 440 clients.  Moreover, clients could receive=20
negligible payouts after legal costs and the liquidators'=20
bill are settled.

The same issues dealt with in the CA Pacific case at the=20
Court of First Instance cost clients at least $ 13 million.
Provisional liquidation costs for Forluxe Securities and=20
Forluxe Finance came to $ 4.77 million even before the=20
winding-up order was made.

However, clients opted to await the outcome of the CA=20
Pacific case before proceeding with the distribution of=20
shares held by Forluxe.  In December 1998, Madam Justice=20
Maria Yuen ruled that CA Pacific clients had retained a=20
beneficial interest in the securities held in CCASS.

However, how the shares were to be returned to clients=20
remained unclear.  Forluxe liquidators Nelson Wheeler=20
Corporate Reconstruction & Insolvency have asked the same=20
judge to decide how their clients' shares should be
distributed.  The case will be heard on March 16.

"There's a lot that hinges on these directions," liquidator=20
Bruno Arboit explained.

The judge will have to decide if the findings in the CA=20
Pacific case can be applied to Forluxe, specifically=20
whether the shares are held in trust for the clients.
She will also have to look at the treatment of shares held=20
in accounts otherthan that of CCASS and how shares held in=20
both the securities and finance units' names are to be=20
treated.

Clients could also see their claims affected by legal =20
action taken against former directors James Mui Kwong-nok,=20
Gordon Mui Kwong-yin and Peggy Lee Yui-pin.  A default=20
judgment was granted against the Muis in September 1998.=20
James Mui was ordered to pay $ 38.16 million, Gordon Mui $=20
100,884 and Peggy Lee $954,000.

The stock exchange has settled 2,511 claims arising from=20
the collapse of CA Pacific and Forluxe Securities,=20
involving compensation of $ 376 million. A total
of 167 determination notices have been sent to Forluxe=20
clients, copies of which have been sent to the Securities=20
and Futures Commission, requesting payment to claimants.
(South China Morning Post  22-Feb-2000)


=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
I N D O N E S I A
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D

BANK INDONESIA: Sjahril vows not to step down =20
---------------------------------------------
Embattled Bank Indonesia Governor Sjahril Sabirin stressed=20
on Monday that he would not resign from his post despite=20
increasing criticism over the alleged mishandling of=20
billions of dollars in emergency liquidity support to=20
ailing banks between November 1997 and early 1998.=20

Sjahril said that according to the new central bank law,=20
his office term is for four years.=20

"I won't step down. If I resign because of pressure it=20
means that I'm violating the law," Sjahril announced before=20
attending a meeting with senior economics ministers. "Those=20
who apply pressure (for Sjahril to resign) also violate the=20
law. So for the time being, I will just stay calm," he=20
added.=20

The central bank law, enacted in May 1999, guarantees Bank=20
Indonesia's independence from executive control. The law=20
stipulates that only the House of Representatives can=20
remove a central bank governor and only when the official=20
is found to have violated the law.=20

Rumors that Sjahril was considering resigning escalated=20
last week after Minister of Investment and State=20
Enterprises Development Laksamana Sukardi said on Thursday=20
that he was willing to replace Sjahril. Laksamana is a=20
former banker.=20

President Abdurrahman Wahid hinted early this year that he=20
might ask the House of Representatives to replace Sjahril=20
following an audit that allegedly discovered irregularities=20
in the transfer of the multibillion dollar bank liquidity=20
support.=20

Several legislators have also called on Sjahril to step=20
down to give way to the investigation of the case.=20
Sjahril denied the rumors that he had submitted his=20
resignation to House Speaker Akbar Tandjung.  But he said=20
that he had submitted three names to the House as possible=20
candidates to replace deputy governor Iwan Prawiranata,=20
whose term will expire in May.=20

Sjahril declined to name the candidates, but sources claim=20
they were deputy governor Aulia Pohan and senior Bank=20
Indonesia officials Burhanuddin Abdullah and C. Harinowo.=20
He also dismissed rumors that Iwan's replacement was=20
related to the alleged liquidity support scandal.=20

Sjahril added that starting in May, Bank Indonesia would=20
only have six deputy governors. At present there are seven.=20
The central bank provided some Rp 164.5 trillion (US$23=20
billion) in liquidity support to ailing banks when the=20
country's economic crisis deepened.=20

A general audit conducted by the Supreme Audit Agency (BPK)=20
last December revealed that the central bank had violated=20
procedures in the transfer of some Rp 80 trillion of the=20
liquidity support.  Bank Indonesia has so far rejected the=20
BPK audit report. The agency is currently conducting an=20
investigative audit into the central bank and recipient=20
banks to clarify the matter. The audit is expected to be=20
completed in May.=20

Bank Indonesia senior deputy chairman Anwar Nasution last=20
week defended the central bank governor, saying that=20
Sjahril should not be held responsible for the alleged=20
mishandling of the liquidity support because the alleged=20
irregularities took place before Sjahril took over from the=20
previous governor, Soedradjad Djiwandono, in February 1998.=20

The government provided the emergency liquidity support in=20
a bid to help banks stay afloat amid plunging confidence in=20
the industry. (The Jakarta Post  22-Feb-2000)

PT DHARMALA SAKTI SEJAHTERA: Reports on bankruptcy to JSX
---------------------------------------------------------
PT Dharmala Sakti Sejahtera Tbk, through Yose Rizal Bambang=20
Aribowo, Head of Listing Division, reports to the Jakarta=20
Stock Exchange on the bankruptcy suit dated 17 February=20
2000 as follows:=20

1. PT Dharmala Sakti Sejahtera Tbk (Perseroan) had received=20
the summon from Court in the First Instance of Central=20
Jakarta through letter no. W7.Dc.Ht.767.II.2000.03 dated 16=20
February 2000, regarding court of case Bankruptcy Filing=20
no.10/Pailit/2000/PN.NIAGA.JKT.PST submitted by PT Hanil=20
Bakri Fiance.=20

2. Until now, the restructuring process is still going=20
through. The Company and HSBC as Financial Consultant, has=20
been discussing the restructuring proposal with creditors. =20
(Jakarta Stock Exchange  21-Feb-2000)

PT FISKARAGUNG PERKASA: Reports bankruptcy progress to JSX
----------------------------------------------------------
Continuing the meeting dated 2 January 2000 at JSX, Makarim=20
& Taira S. through letter No.086/2865.001/TS-hsp dated 14=20
February 2000 reported the following bankruptcy process=20
progress regarding PT Fiskaragung Perkasa Tbk ("Fiskar"):

1. Within the framework of finishing effort to Fiskar,=20
there was a discussion between investor representative,=20
creditors and Surveillance Judge and curator.=20
2. The discussion does not stop the bankruptcy process=20
except if there is a finishing agreement between related=20
parties followed by demand of bankruptcy process stopping=20
to curator who will apply to the Surveillance Judge.=20
3. Within the framework of finishing of bankruptcy and=20
considering that finished product more valuable than raw=20
materials, therefore, factory operational is still defended=20
during the raw materials per balance sheet 26 November 1999=20
is still available.=20
4. Until present, there is no downsizing.=20
5. Minutes of Meeting of Creditor II and III (attached0.=20
The minutes of meeting of Creditor IV will be informed=20
immediately, after it finished.  (Jakarta Stock Exchange =20
21-Feb-2000)


=3D=3D=3D=3D=3D=3D=3D=3D=3D
K O R E A
=3D=3D=3D=3D=3D=3D=3D=3D=3D

DAEHAN INVESTMENT TRUST: FSS to conduct probe til March 15
KOREA INVESTMENT TRUST: FSS to conduct probe til March 15
----------------------------------------------------------
The government has launched an extensive investigation into=20
the operations of two leading investment trust companies=20
over the last five years.=20

A team of officials from the Financial Supervisory Service=20
will conduct a probe into the Korea Investment Trust Co.=20
until March 15 while the same group will examine the books=20
and documents of the Daehan Investment Trust Co. from Feb.=20
28 to March 20.=20

The FSS officials will look into their handling of Daewoo=20
bonds and customer deposits in particular.  The two=20
securities brokerage houses received a huge amount of=20
public funds earlier after the government had declared them=20
non-viable in December 1999.=20

The financial authority said it aimed to find those=20
responsible for the poor operational records of the two=20
leading securities houses.  It added that the government=20
would impose penalties if any illegal business practices=20
are uncovered from the investigation.  The government=20
earlier declared the two non-viable, ordering them to scrap=20
capital to a ratio of 20:1.=20

The financial authorities later injected public funds worth=20
2 trillion won in Korea Investment and 1 trillion won in=20
Daehan Investment to enable them to deal with cash calls=20
for Daewoo bonds.  (Korea Times  23-Feb-2000)

DAEWOO CORP.: Creditors write off more debts
--------------------------------------------
The creditors of Daewoo Corp. announced Tuesday that they=20
have decided to write off an additional W3.3 trillion of=20
its debts.=20

The creditor's of the trading arm of Daewoo group met that=20
day at the headquarters of main creditor Hanvit Bank and=20
proposed the write-off to the standing committee of the=20
Daewoo conglomerate's creditor's group. Added to a W18.7=20
trillion loan write-off at the end of last year, this will=20
bring the total amount of debt written off by Daewoo Corp.=20
creditors to W22 trillion. Out of this figure, W21 trillion=20
will remain as no-interest loans, while W1 trillion will be=20
converted into shares.  (Digital ChosunIlbo  22-Feb-2000)

DAEWOO MOTOR: Extends bidding period 2 days
-------------------------------------------
Daewoo Motors announced Tuesday that it has extended its=20
bidding deadline up to February 24 to allow the six=20
participating companies and consortiums additional time to=20
finalize their offers.=20

Currently, General Motors (GM) appears to be the favored=20
takeover company as it has already exchanged MOUs with=20
Daewoo and conducted due diligence on the firm. In addition=20
GM is prepared to take over several of the group's elements=20
including Daewoo Motors, Ssangyong Motors and Daewoo's=20
financing and distribution units, favored by creditors and=20
the government.=20

Ford is also learned to have expressed interest in a=20
package deal that would involve Daewoo Communications and=20
the gearbox division. Domestic player Hyundai, which had=20
only shown a desire to gain control of Daewoo's plant in=20
Poland, is reportedly also now considering a package deal.=20
Daimler-Chrysler is in negotiations with Daewoo suppliers=20
with a view to forming a consortium for a takeover bid.=20
(Digital ChosunIlbo  24-Feb-2000)

HANA BANK: To borrow $350 million for debt paydown
--------------------------------------------------
Hana Bank will sign contracts with a group of foreign=20
lenders, including BankBoston, early next month to borrow=20
$350 million, a bank official said yesterday.=20

Of the total, $200 million will mature in three years and=20
be introduced through a combination of a syndicated loan=20
and a floating-rate note (FRN) issue carrying an interest=20
rate of 1.12 percent to 1.22 percent plus LIBOR (London=20
Inter-Bank Offered Rate).  A total of 36 foreign banks will=20
participate in the loan, which Hana will use to pay off its=20
government-guaranteed foreign debts April 10, the official=20
said.=20

Hana will also issue FRNs worth $100 million in early March=20
to expand its foreign currency reserves. Deutsche Bank will=20
underwrite the notes and sell them through private=20
placement, the official said.  The FRNs will mature in two=20
years and carry an interest of 1.35 percent plus LIBOR.=20
(Korea Herald  24-Feb-2000)

KOOKMIN LIFE INS.: SK Group priority bidder
-------------------------------------------
The government yesterday designated the SK Group as=20
priority negotiator for the sale of the troubled Kookmin=20
Life Insurance Co., according to the Financial Supervisory=20
Commission.=20

The commission said SK was selected since it has offered=20
the highest takeover price of 107.1 billion won ($94.4=20
million) among prospective buyers.  The bid price of=20
Youngpoong Manu Life Insurance Co. was lower than that of=20
SK, while a consortium of a U.S. life insurer and the=20
International Finance Corporation did not submitted a=20
proposal, it said.=20

The government will sign a memorandum of understanding with=20
the SK Group next Tuesday and talk about specific terms for=20
the sale of Kookmin Life Insurance, a commission official=20
said.  Both sides agreed to strike a final deal on the=20
takeover by March 14, while the deadline can be extended=20
three times by one week, he added.=20

Kookmin Life Insurance is among seven financially weak life=20
insurance companies the government intends to sell off to=20
domestic and foreign investors as part of its plan to=20
restructure the debt-ridden domestic life insurance=20
industry.  Late last year, the government nationalized=20
Korea Life Insurance Co., the nation's third largest life=20
insurer, as its efforts to sell it off to a foreign=20
investor fell apart.  (Korea Herald  24-Feb-2000)

SAMSUNG MOTOR: Renault asks for more employees
----------------------------------------------
Renault is asking an unusual reguest of demanding an=20
increase in the number of employees at Samsung Motors=20
before taking it over.

Samsung said Tuesday that visiting Renault officials=20
inspecting the Korean automaker's facilities said=20
operations will be difficult unless more workers are
hired, asking for ways to have managers and workers who=20
left the company return.

But Samsung said it will have trouble recalling them=20
because it cannot just have them report back to their=20
former employer on such short notice. The insolvent=20
automaker once had around 6,000 workers on its payroll, but
the number is now about 2,000 through retirement and=20
transfers after the announcement of merger deal with Daewoo=20
Motor.

The French automaker also wanted to continue producing the=20
Samsung SM5 series of passenger cars, the car model=20
produced by Samsung before it went out of business. It also=20
wants the Samsung side to hold on to 20 percent of the
motor firm after its takeover by Renault.

Renault will hold negotiations with Samsung and its=20
creditors at the end of this month or early next month as=20
soon as its inspection is concluded and it puts final=20
touches on its proposal.  (Asia Pulse  22-Feb-2000)

SAMSUNG MOTOR: Renault to begin purchase negoitations
-----------------------------------------------------
Renault, the French carmaker, is expected to begin=20
negotiations by the end of this month on the proposed=20
takeover of Samsung Motors.

This follows a factory and financial inspection of the=20
ailing South Korean carmaker. The Samsung group hopes to=20
conclude a deal by the end of March.  Samsung Motors' only=20
car model is a modified version of the Maxima saloon
produced by Japan's Nissan Motor, in which Renault acquired=20
a controlling 36.8 per cent stake last year.

Renault's proposed purchase is supported by Samsung Motors'=20
managers and workers, who view the sale as the last chance=20
to save the company. This is in contrast to a possible=20
foreign takeover of the insolvent Daewoo Motor, Samsung's
bigger domestic rival, which has aroused fears of job cuts.
However, some analysts question the value of the deal to=20
the French carmaker.

"Renault's interest in Samsung is puzzling since Samsung's=20
production capacity of 180,000 cars means it does not have=20
the economies of scale needed to become profitable," said=20
an automotive analyst in Seoul.

The takeover of Samsung and efforts to revive its business=20
would add to financial pressure on Renault, which saw its=20
1999 profits fall due to its Dollars 5bn investment in=20
troubled Nissan.  Samsung Motors, which began operations in=20
1998 during South Korea's economic crisis, has lost an=20
estimated Won1,700bn (Dollars 1.5bn). It sold only 50,000
cars before production stopped for most of last year after=20
it was placed under court receivership.

But other analysts believe Renault could benefit from the=20
deal, since it would give it access to South Korea's closed=20
car market, the second largest in Asia after Japan.
Renault might be able to buy Samsung Motors for a low price=20
of up to Won800B and avoid the need to cut jobs, since two-
thirds of the 6,000-strong workforce have already been=20
dismissed.

The Samsung group has agreed to assume most of the=20
carmaker's debts of Won4,000bn, while it is expected to=20
keep a 30-40 per cent stake in Samsung Motors to help=20
Renault with local distribution.  Analysts believe that=20
Renault will press for a deal before South Korea's
parliamentary elections on April 13 while its bargaining=20
position is at its strongest.

This reflects the government's desire to announce the sale=20
before the election, to win votes in the south-east port=20
city of Pusan, an opposition stronghold where Samsung=20
Motors' Dollars 3bn car plant is located.  (Financial Times =20
22-Feb-2000)


=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
P H I L I P P I N E S
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D

APO CEMENT CORP.: Having trouble servicing debts            =20
DAVAO UNION CEMENT CORP.: Having trouble servicing debts       =20
HI CEMENT CORP.: Having trouble servicing debts           =20
REPUBLIC CEMENT CORP.: Having trouble servicing debts     =20
-------------------------------------------------------- =20
Dollar-denominated debts continue to hurt local cement=20
companies. Industry statistics show this has ballooned to=20
$1.7 billion (68 billion Philippine pesos), further=20
compounding problems on oversupply and low demand.=20

Philippine Cement Manufacturers Corp. (Philcemcor) general=20
manager Lupo Feliciano told BusinessWorld yesterday that=20
cement firms are currently having difficulty servicing=20
their debts which were accumulated during the pre-crisis=20
period when they resorted to borrowing to finance=20
expansion.=20

"Debts continue to be a problem among local producers=20
especially now that the peso's value has gone down against=20
the dollar. Most of these loans, unfortunately, are dollar-
denominated. Cement companies are doing their best to pay=20
them since they don't want to be in default," he said.=20

Records from Philcemcor show that cement producers borrowed=20
an additional $1.7 billion from the periods 1996 to 1998 in=20
anticipation of continued growth in cement demand.  Among=20
big cement producers which have borrowed heavily during the=20
said period include: Phinma's Davao Union Cement Corp. and=20
HI Cement Corp., Republic Cement Corp. and APO Cement Corp.=20

Davao Union and HI Cement reportedly incurred more than=20
PhP5 billion (US$123 million at PhP40.654:US$1) in debts in=20
1998.  Mr. Feliciano said while big companies have=20
successfully tapped the help of known foreign cement=20
producers to bail them out, smaller firms were left with no=20
choice but to resort to partial closures.=20

"Almost all those who have multi-line production have=20
resorted to partial shutdowns although there were only a=20
few who really closed shop. They had to cut down on=20
production or their cost will just continue to go up=20
without money coming in," the Philcemcor official said.=20
Luzon-based Rizal Cement led companies which have scaled=20
down production, reducing its capacity by 91% to 385,306=20
bags during the first nine months of last year from 4.35=20
million bags the previous year. It is followed by Titan=20
Cement, whose production fell 76% to 886,880 bags and=20
Iligan Cement which reduced its output by 37% to 7.02=20
million bags.  Other cement companies have also opted to=20
consolidate operations and hook up with foreign partners.=20

Foreign companies -- which now control 90% of the local=20
cement industry -- include Mexico's Cemex, France's=20
Lafarge, Holderbank of Switzerland and UK's Blue Circle=20
Industries Plc. Philcemcor also reported that the cement=20
industry suffered huge losses last year as a result of=20
continuing low prices, high production costs and stiffer=20
competition.=20

Preliminary data showed that total net losses of=20
Philcemcor's members are seen to reach at least PhP5.7=20
billion ($140.2 million) in addition to net losses posted=20
the previous year totalling PhP3.5 billion ($86 million). =20
Sales from the periods January to September 1999 alone=20
plunged by 5.62% to 240.46 million 40-kilogram (kg) bags=20
from 254.79 million bags a year ago. This figure translates=20
to 9.62 million metric tons (MT) cement sold as against the=20
previous 10.19 MT. Year-on-year, the drop was slightly=20
bigger than a 5.58% fall recorded in 1998.=20

"The cement industry is making less than zero return on its=20
investments. The impact on the economy will not only be=20
now. If we are to look forward, as a responsible industry=20
should, the situation prevents us from addressing future=20
needs of the economy," Mr. Feliciano added.=20

Some sectors of the industry, however, remain optimistic=20
that the local cement environment will recover this year.=20
In a recent study, investment banker Salomon Smith Barney=20
said it expects earnings of cement firms to recover not=20
only in the country but in Thailand as well as prices of=20
cement are seen to improve during the year.  Prices of=20
local cement have improved from as low as PhP80 per bag=20
early last year to PhP100 per bag in November as a result=20
of increased activity in the construction sector. =20
(Business World  24-Feb-2000)

ARMSTRONG HOLDINGS: Facing PSE probe
OMICO CORP.: Facing PSE probe
PHILWEB.COM: Facing PSE probe
------------------------------------
The Philippine Stock Exchange has started looking into the=20
unusual trading behavior of several other listed companies,=20
among them controversial businessman Dante Tan's Armstrong=20
Holdings Inc., Omico Corp. and South Seas Resources, now=20
known as Philweb.com following the buy-in by the group of=20
businessman Roberto V. Ongpin.=20

Omico was formerly a mining company taken over by=20
classmates of President Estrada and converted into a=20
holding firm.  The PSE official said Armstrong, where Tan=20
is the majority owner, displayed unusual trading behavior=20
last year that is now being investigated by the PSE=20
compliance and surveillance group for possible price=20
manipulation.=20

However, Tan said the continuing investigation into his=20
affairs was "getting very unfair" following the release of=20
the investigative report into BW Resources Corp. that he=20
described as a "black paper" which unfairly singled him=20
out.=20

"I do not know what they are talking about. I am the=20
majority yes but I do not even trade on that share," Tan=20
said.=20

Tan said the investigation into Armstrong was just the next=20
stage in a continuing campaign by some people who want to=20
bring him down.  PSE data showed that Armstrong was hardly=20
traded at the start of last year with its share price=20
pegged at only P9.50 with volume of trade staying at a=20
maximum of 30,000 shares up to April.=20

It was only in September when volume and the selling price=20
suddenly shot up after rumors swirled the market that Tan=20
was going to come in and buy out the shares of businessman=20
Tony King.  Its hare price suddenly went up from P6.60 on=20
Sept. 14 to P9.90 the next day, and within 17 days or a=20
little over two weeks, jumping to P43 with traded volume=20
reaching 10.48 million shares.=20

It was during this time that Tan made the voluntary offer=20
to buy the remaining shares held by minority shareholders=20
of listed financial services firm Armstrong at P2.75 per=20
share.  Tan made the tender offer after acquiring 107=20
million shares of Armstrong at P2.75 per share, equivalent=20
to 59 percent of the total issued and outstanding capital=20
stock of AHI.=20

The tender offer provisions showed that Tan wanted to=20
acquire full control of Armstrong as he planned to use it=20
as the holding firm for his investments.  Armstrong is a=20
financial services firm that listed its shares last year to=20
bankroll the increase in stake in Orion Savings Bank. One=20
source said the investigation into Armstrong and the other=20
issues have fallen by the wayside as all resources have=20
been focused on gambling firm BW Resources.=20

Tan said the investigative report prepared by the=20
compliance and surveillance report was not fact-finding but=20
"fault-finding."=20

Tan said in the letter sent to the Senate committee on=20
banks and financial institutions that he was "investigated,=20
prosecuted, tried and convicted by the kangaroo court of=20
Almadro and other unscrupulous individuals of the PSE, for=20
which they will have to answer."=20

He added that the investigative report prepared by the=20
compliance and surveillance group headed by Ruben Almadro=20
"was written for the sole purpose of destroying me."=20

Tan's letter was sent to the Senate committee chaired by=20
Sen. Raul S. Roco through his counsel, Renato A. V.=20
Saguisag, who said Almadro might have allowed himself to be=20
used as a tool by Tan's business rivals at the expense of=20
Tan who was "more sinned against than sinning." (Philippine=20
Daily Inquirer  22-Feb-2000)
=20
BW RESOURCES CORP.: Main shareholder to hold onto stake   =20
-------------------------------------------------------    =20
Despite the significant decline in the share price of=20
controversial gaming firm BW Resources Corporation over the=20
last four months, listed holding firm Megaworld Corp. --=20
its biggest stockholder -- is still holding on to its=20
stake, contrary to market talk that owner Andrew Tan has=20
decided to divest.=20

Megaworld vice-president for corporate management Cirilo=20
Manlangit told BusinessWorld yesterday that Megaworld's=20
interest in BW Resources constitutes a small percentage of=20
its aggregate assets to significantly affect its investment=20
portfolio.  The real estate developer currently holds a=20
72.12% stake in BW Resources, followed by Philippine=20
Central Depository Nominee, which has 24.97% and PCCI=20
Securities Brokers Corp., with 1.71% shares.  Beleaguered=20
presidential friend Dante Tan, on the other hand, holds=20
0.06%.=20

"Megaworld's shareholdings (in) BW constitute only 3.6% of=20
our total assets in our balance sheet, so that in the case=20
of an upturn or downturn in BW share prices, there is no=20
material effect on the company," Mr. Manlangit said.=20

Megaworld took its BW Resources interest when both parties=20
entered into an agreement in March last year to develop the=20
Sheraton Marina Complex, a real estate project in Malate=20
(Manila in western Metropolitan Manila) envisioned to be a=20
premier commercial, residential and recreation site.  The=20
deal entitled Megaworld to shares in the gaming firm worth=20
1.2 billion Philippine pesos ($0.03 billion at=20
PhP40.654=3D$1).=20

It also entitled BW Resources to a parcel of land in Malate=20
owned by Megaworld, in exchange for its shares.  The BW=20
Resources majority owner has kept its silence since the=20
controversy linking the gaming firm to price manipulation=20
at the stock market broke out in June last year.  Market=20
talks are rife Megaworld's Mr. Tan is considering pulling=20
our the company's interest in BW Resources, whose share=20
price is now down to PhP3.55 after it hit the PhP100-level=20
last October.=20

But while Megaworld remains nonchalant over the significant=20
decline in the gaming firm's share price, bingo franchise=20
holder Best World Gaming and Entertainment Corp. (BWGEC)=20
owner Dante Tan announced that BW Resources' poor=20
performance in the stock market has prompted Best World to=20
defer a planned share swap.  He said the planned merger=20
will have to be temporarily shelved due to the controversy=20
hounding BW Resources.=20

"The agreement still stands. But with all the controversy,=20
the Securities and Exchange Commission might not act on=20
it...I hope to see the share price bounce back to a level=20
it deserves. One day, I'll prove to them that the (right)=20
price is PhP100," the businessman said.=20

Under the agreement, 525.2 million Best World shares will=20
be swapped with 823 million BW Resources shares valued at=20
PhP35 per share.  The total value of the deal is targetted=20
to reach PhP28 billion ($0.689 billion).  However, at the=20
current market price of BW Resources shares, the=20
acquisition cost of Best World will amount to only PhP2.5=20
billion ($0.061 billion).  Best World's bingo operation is=20
seen to generate PhP11 billion ($0.271 billion) in net=20
earnings for BW Resources.  (Business World  24-Feb-2000)

BW RESOURCES CORP.: Tan wins battle, PSE digs in
------------------------------------------------
Chinese-Filipino businessman Dante Tan won a legal=20
skirmish, but the Philippine Stock Exchange (PSE) is not=20
about to abandon the fight.=20

Yesterday, Mr. Tan sought and got from the Regional Trial=20
Court of Pasig (eastern Metropolitan Manila) a temporary=20
restraining order (TRO) preventing the PSE from proceeding=20
with its investigation of the alleged insider trading and=20
price manipulation involving BW Resources Corporation.=20
The TRO, which took effect yesterday at 2 p.m., is good for=20
72 hours.=20

Rodolf C. Britanico, lawyer of BW Resources stockholder=20
Jimmy Juan, was surprised by the TRO.  In a telephone=20
interview with BusinessWorld, he said he was not even aware=20
that Mr. Tan filed a case against the PSE and several John=20
Does.  He stressed the suit has no effect on the pending=20
Juan petition before the Court of Appeals.=20

"The case at the CA has no bearing whatsoever in the trial=20
court. The parties are not the same," he explained.=20

The Rules on Civil Procedure prohibits two courts from=20
hearing the same case involving the same issues, subject=20
matter and parties.  Thus, one court must submit to the=20
jurisdiction of the other.  Since Mr. Tan sued the only PSE=20
and its officers while Mr. Juan cited the exchange, the=20
Securities and Exchange Commission and brokerage houses=20
Belson Securities, Inc., Asiasec Equities, Inc. and A.T. de=20
Castro Securities Corp., then "the suit could not be said=20
to be one and the same thing," Mr. Britanico said.=20

The ultimate goal of both actions is, however, the same: to=20
stop the probe against BW Resources and its officials.=20
"PSE is considered a private corporate and cases against it=20
must be filed at the lower court, and this is what Mr. Tan=20
exactly did," Mr. Britanico said.=20

The rules also allow lower court judges to issue=20
restraining orders even without a hearing, on the condition=20
that a party will suffer irreparable injury unless his=20
adversary is enjoined.  However, the judge issuing the TRO=20
is required to set the case for hearing to determine=20
whether or not it is necessary to extend the injunction to=20
20 days.=20

Otherwise, it will be automatically lifted. Lower courts=20
are authorized to issue TRO with maximum lifespan of only=20
20 days.  Supreme Court Chief Justice Hilario G. Davide,=20
Jr. had earlier warned judges against the "indiscriminate=20
issuances" of TROs.  He even ordered the inventory of TROs=20
issued nationwide to determine if there were judges who=20
abuse this power.=20

BusinessWorld tried but failed to get hold of Jose Rivera,=20
Jr., Mr. Tan's lawyer, to comment on the latest court=20
issuance.  He and other lawyers of the Rivera Santos=20
Maranan Law Office had an emergency meeting last night to=20
map out their next strategy in their bid to cleanse the=20
name of Mr. Tan.=20

In an order signed by Executive Judge Rodolfo Bonifacio of=20
Branch No.159 of the Regional Trial Court of Pasig, the TRO=20
is "enjoining the PSE, its Business Conduct and Ethics=20
Committee (BCEC) and its other departments, divisions,=20
groups, officers," among others, "from taking any further=20
proceedings, reviewing, implementing disposing of or acting=20
upon the investigation report on BW dated Feb. 11."=20
"But (the TRO) gives the (Securities and Exchange=20
Commission) more reason to use the PSE findings,=20
(otherwise) they can start from scratch. (The TRO) just=20
prevents the BCEC from filing its own report," a=20
BusinessWorld source said.=20

At this point, the PSE has yet to receive the responses of=20
11 brokers it cited for possible violations.  Tagged for=20
possible complicity in the alleged price manipulation case=20
were PCCI Securities Brokers Corp.; A.T. de Castro=20
Securities Corp.; Asiasec Equities, Inc.; Securities 2000,=20
Inc.; Angping and Associates; Quality Investments and=20
Securities Corp.; Guild Securities; and Armstrong=20
Securities.=20

Cited for minor violations were Belson Securities, Inc.,=20
PNB Securities, Inc. and Aurora Securities, Inc.=20

Meanwhile, the changes in the leadership of the SEC and PSE=20
are not expected to affect the results of the=20
investigations on BW Resources, PSE officials said=20
yesterday.  Skepticism over the ongoing probe persisted=20
amid the impending resignation of SEC chairman Perfecto R.=20
Yasay, Jr. and the coming PSE board of governors elections=20
this March.=20

In a news conference yesterday, Ruben Almadro, head of the=20
PSE's Compliance and Surveillance Group (CSG), said=20
"nothing can alter the facts."  "It will not affect the=20
integrity of the investigation. That is precisely why the=20
(PSE) management say the exchange is run by professionals,=20
not by brokers. That is what we want to see, effective=20
continuity," PSE vice-president for Business Development=20
and Information Jose Fernando Alcantara added.=20

Mr. Almadro also dared Mr. Tan to sue him in court.=20
"He said he is going to file a case against me. I'm waiting=20
for that, in which event, I will decide whether to file a=20
counter suit. At the outset, as a lawyer, any complaint of=20
libel at this point is totally baseless," he told=20
reporters.=20

In a statement distributed to reporters, Mr. Almadro said=20
he will see Mr. Tan "in court" for preferring a trial by=20
publicity.  "He is just muddling the issue and shifting the=20
focus away from him to others because he knows he has a lot=20
of explaining to do," Mr. Almadro said.  "Instead of=20
explaining before the proper forum, he has chosen to use=20
the media to malign my person. This is unfair. We did our=20
job honestly and with integrity and according to the best=20
of our capabilities with no malice against anybody," Mr.=20
Almadro said.=20

The PSE official stressed that the CSG -- the fact-finding=20
body of the PSE -- looked into the crucial dates which Mr.=20
Tan claimed was overlooked.  "We looked behind the=20
beneficial owners of the selling transactions and if there=20
is any conspiracy or any scheme to manipulate the market on=20
the selldown, we should have seen patterns and=20
relationships between the parties selling it down. There=20
was no such relationship," Mr. Almadro said.=20

"The selldown was occasioned by several brokers selling for=20
their clients, not only the four brokers alleged to have=20
sold down shares but by several brokers including the main=20
brokers of Dante Tan," he added.=20

He also said the CSG looked into signs to determine if=20
those who bought and sold were real clients.  An=20
examination of customer accounts, for example, would=20
indicate the reality of the client.  A customer account=20
would show the client's name, residence, phone number and=20
other pertinent information.=20

"We looked at beneficial owners and possible signs that=20
there were dummies and we did this not only for October 11=20
to 14 but from the very start," Mr. Almadro said. =20
(Business World  24-Feb-2000)


=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
S I N G A P O R E
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D

CLOB INT'L: Impasse remains, offer not dispatched
-------------------------------------------------
The irrevocable request and authority (IRA) proposal by=20
Effective Capital Sdn Bhd to resolve the long drawn-out=20
Central Limit Order Book (Clob) impasse expired yesterday,=20
with the Singapore authorities failing to despatch the=20
offer document to Clob shareholders.=20

This has incensed some of the individual Clob investors=20
contacted by Star Business yesterday. They have called on=20
those parties to take responsibility for any adverse=20
consequences that they may face.  The position of Effective=20
Capital, meanwhile, remains unclear following the expiry of=20
its final offer.=20

Effective Capital is the only company so far sanctioned by=20
the Malaysian authorities to proceed with a firm offer to=20
the Clob investors.  Its chief executive officer Datuk=20
Mohamed Moiz could not be reached for comment yesterday,=20
but it is understood that a press statement will be issued=20
by the company today.=20

A government official contacted by Star Business said=20
Effective Capital could still make a fresh offer, or the=20
frozen Clob securities would be transferred to the Ministry=20
of Finance upon the expiry of the authorised nominee status=20
of Singapore's Central Depository (Pte) Ltd (CDP) on June=20
30.=20

He said a fresh offer from Effective Capital could=20
incorporate the Singapore Exchange Ltd's (SGX) requests=20
for, among other things, a reduction in the fee structure,=20
a shorter release period for the Clob securities and an=20
undertaking by the KLSE and Malaysian Central Depository=20
Sdn Bhd (MCD) that the shares would be transferred to the=20
individual Clob holders' accounts once the IRA offer is=20
accepted.=20

The official added that the recent extension of the CDP's=20
authorised nominee status from Dec 31, 1999 to June 30 this=20
year was made to allow Effective Capital to complete its=20
IRA offer.  While the Effective Capital offer has lapsed,=20
its competitor Bintang Melewar Sdn Bhd has submitted a=20
written request to the KLSE for its clearance or comment=20
regarding the company's offer document.=20

An official of Bintang Melewar said the company had sent a=20
draft copy of its offer to the KLSE for its perusal on Feb=20
9.  The offer by Bintang Melewar would involve the transfer=20
of the Clob securities from the CDP account into a nominee=20
account with the Malaysian International Merchant Bankers=20
Bhd (MIMB). The whole process would take 3-1/2 months.=20

After the transfer, the securities would be released on a=20
staggered basis over a period of 10-1/2 months. For its=20
services, Bintang Melewar has proposed a fee of 1% of the=20
value of the securities as at Dec 31, 1999. Individual Clob=20
investors contacted yesterday generally expressed their=20
unhappiness with the CDP for not distributing the offer=20
document, saying that the authorised nominee of the frozen=20
securities should leave it to the investors to make their=20
own decision on the matter.=20

"The party who has decided not to send out the offer=20
document, in this case the CDP, should take responsibility=20
for any consequences that the investors may face," said one=20
investor, Y. Woozeer.=20

Woozer said as a trustee, it was the CDP's duty to convey=20
any bona fide offer from a private party to the beneficial=20
owners of the Clob securities.=20

"It is the right of the investor to at least look at the=20
document and consider what to do with it. When the CDP=20
takes away that right, it cannot be unaware of its=20
responsibility for the consequences and the risks that it=20
is putting on our assets," he added.=20

Another Clob investor, Kalpanath Singh, said he had been=20
told by the CDP that it was working towards a comprehensive=20
solution to the Clob impasse.=20

"I have been calling them three to four times a day for the=20
offer document. I am interested in the Effective Capital=20
offer and was looking forward to having my own account back=20
and starting trading on the KLSE," he said.  (Star Online =20
23-Feb-2000)

L&M GROUP INVESTMENTS: To share business plans this week
--------------------------------------------------------
Construction firm L&M Group Investments said yesterday it=20
would hold a news briefing today on its business plans,=20
after a recent $81.5 million bank loan and separate deal=20
with PT Microsoft Indonesia.=20

It said chairman Edward Soeryadjaya and executive director=20
Marcel H L Tjia would lead the briefing. L&M said last=20
month it had accepted a refinancing credit package worth=20
$81.5 million from a leading Singapore bank to help repay=20
its outstanding loans.=20

L&M yesterday identified the bank as Overseas Union Bank,=20
the smallest of Singapore's Big Four banks. The company has=20
announced a $1.52 million loss in the year to Dec 31,=20
compared with a $49.68 million loss in the previous year.=20
L&M rose 3 cents to end the day at $1.31, with 4.8 million=20
shares traded.  (Reuters, Singapore Business Times  24-Feb-
2000)


=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
T H A I L A N D
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D

CHIANGMAI FROZEN FOODS: Stops acquisition after loss posted=20
-----------------------------------------------------------=20
Chiangmai Frozen Foods Plc has scrapped its plan to acquire=20
a 51 per cent stake in Laiyang Chongtai Frozen Foods Co=20
Ltd, after accumulating Bt12.7 million in losses as of the=20
end of 1999. The company attributed the loss mainly from=20
lower-than-expected sales revenue and failure to control=20
raw material costs.  (The Nation  24-Feb-2000)

GOLDEN LAND PROPERTY DEVELOPMENT: Posts 9-month loss      =20
----------------------------------------------------        =20
Golden Land Property Development Plc has reported a Bt48.69=20
million net loss for the first nine months of 1999 against=20
a Bt266.93 million net loss for the same period in 1998. =20
(The Nation  24-Feb-2000)
=20
OM-SIN AMNUAY SUB FUND: Posts narrower annual loss        =20
--------------------------------------------------            =20
Om-Sin Amnuay Sub Fund has reported a Bt303.57 million net=20
loss in 1999, compared with a Bt365.45 million net loss in=20
1998, in its audited annual financial report ending Dec 25. =20
(The Nation  24-Feb-2000)

PIZZA PLC: Court leaning towards ruling in favor
------------------------------------------------
The New York Court currently deliberating a suit and=20
counter-suit between the number one US restaurant operator,=20
Tricon Global Restaurants and Thailand's number one=20
restaurant operator, Pizza Plc, has ruled initially in=20
favor of Pizza.=20

Tricon is barred from starting up Pizza Hut restaurants in=20
Thailand that compete with current outlets, until the case=20
has been completed and was ordered to place a US$5 million=20
bond with the Court as security against possible damages=20
incurred by Pizza. Pizza has sued Tricon for close to $200=20
million in damages.=20

The Court placed no restrictions against Pizza venturing=20
into business that directly competed with Tricon's other=20
business in Thailand. Pizza's venture into the fried-
chicken business, which would place it in direct rivalry=20
with Tricon's Kentucky Fried Chicken outlets, soured the 20=20
year relationship between the two firms.=20

The US District Court in New York ruled on Friday that=20
Tricon and Pizza must maintain the status quo with respect=20
to their contractual relationship pending the final=20
decision of the Court. Responding to the US Court order,=20
Pizza made a statement to the Stock Exchange of Thailand=20
(SET) yesterday that it will temporarily postpone the=20
launch of it's new brand name - The Pizza Company.=20

Tricon, the master franchiser of the Pizza Hut brand, and=20
Pizza, the local company with Thai franchise rights to the=20
Pizza Hut brand, are in dispute over contract renewal,=20
resulting in Pizza being forced to re-brand its=20
restaurants. Tricon is also laying the foundation to open=20
up its own Pizza Hut restaurants in Thailand.  (Business=20
Day  23-Feb-2000)

SAMAKORN PLC: Posts huge annual loss                      =20
------------------------------------                      =20
Samakorn Plc has reported a Bt94.54 million net loss last=20
year compared with a Bt2.89-million loss in 1998.  (The=20
Nation  24-Feb-2000)

SIAM STEEL INT'L: Share trading suspended                 =20
-----------------------------------------                     =20
The company's share trading was suspended on Feb 23 by the=20
Stock Exchange of Thailand after the firm failed to submit=20
quarterly financial statements for the period ending Dec=20
31, 1999 within five working days after the deadline.=20
Listed companies are required to submit the statements=20
within 45 days after each period ends.  (The Nation  24-
Feb-2000)

THAI PETROCHEMICAL INDUS.: Creditors sell TPI debts=20
---------------------------------------------------
Some of the foreign creditors of Thai Petrochemical=20
Industry Plc (TPI) have been so impatient with debt-
restructuring negotiations that they have sold their loans=20
at a sharp discount to vulture funds.=20

Reuters quoted an Australian newspaper as reporting that=20
ANZ Bank, a leading Australian bank, planned to sell its=20
unsecured loan to TPI worth A$50 million (about Bt1=20
billion) to a vulture fund at a 50 per cent discount.=20
The newspaper claimed that after the sale, the ANZ Bank=20
would lose A$25 million (Bt500 million). However, the ANZ=20
Bank had set aside provision reserves for the loss.=20
There are three Australian banks involved in lending to=20
TPI.=20

ANZ Bank has the largest exposure at A$50 million, compared=20
to the Commonwealth Bank's A$31 million and US$25 million=20
for the International Australia Bank.  All loans extended=20
to TPI by the Australian banks are unsecured. =20
Wachirapunthu Promprasert, executive vice president and=20
group chief financial officer of TPI, said apart from the=20
Australian banks, he had heard some other creditors had=20
also attempted to sell their unsecured loans to TPI to=20
vulture funds.=20

"I don't know the real reason behind their moves, but this=20
will be good for TPI, because it will be seeing a reduction=20
in its number of creditors in the steering committee," he=20
said.=20

According to a manager of a US$100 million Canadian fund,=20
the vulture funds buying into the loans of TPI from the=20
Australian banks should stand to reap the benefits later.=20
He believed the major local and foreign creditor banks=20
would not allow TPI to go bankrupt.  He said the vulture=20
funds might make a return of 50 per cent, if the TPI case=20
was resolved successfully.=20

Vulture funds buying bad loans at sharp discounts in Korea=20
during the past two years had made significant profits from=20
recovering debts, after the recovery of the Korean economy.=20
However, Wachirapunthu said it was better for the=20
creditors, who were thinking of selling their TPI loans at=20
a 50 per cent discount, to hold on to them, because TPI was=20
not seeking a 50 per cent haircut.=20

In a filing to the Central Bankruptcy Court, Prachai=20
Leopairatana, chief executive officer of TPI, sought a=20
haircut - or a debt-forgiveness - of US$900 million of the=20
total US$3.5 billion the company owed.  This proposal=20
immensely upset creditors, who earlier agreed on a debt-to-
equity conversion of US$400 million to a 30 per cent stake=20
in TPI.=20

By seeking a US$900 million haircut, TPI was effectively=20
calling for a debt forgiveness of 25 per cent, which was=20
still substantially less than the 50 per cent discount of=20
the loans sold by the ANZ Bank of Australia.  Asked whether=20
TPI had attempted to buy back its debt from the creditors=20
at a discount, Wachirapunthu said the company could not do=20
so, because it was in a debt restructuring process in the=20
Central Bankruptcy Court.=20

"We cannot offer to buy back the loans from our creditors=20
because TPI's rehabilitation plan is still in the legal=20
process. If we do so, it will go against the law," the=20
Wachirapunthu said."=20

In debt restructuring squabbles with creditors, TPI had=20
also sought support for an equity-raising plan amounting to=20
US$1 billion. The creditors voiced objection to this plan=20
because they did not think TPI would be able to=20
recapitalise successfully.  The creditors eventually=20
compromised and agreed to have the equity-raising plan=20
included in the rehabilitation programme. But the programme=20
had been dealt a setback after Prachai proposed a US$900=20
million haircut.=20

The Central Bankruptcy Court progresses on March 1 to the=20
next stage of its hearing to decide whether TPI is=20
insolvent or not. If TPI is ruled insolvent, it will pave=20
the way for the creditors to take control of the company=20
and implement the rehabilitation plan.  The court has=20
already heard 10 witnesses from the creditors' side, and=20
will be listening to the witnesses from the debtors' side.=20
(The Nation   24-Feb-2000)

TRE-ATTHABOON GROUP: Creditors accept rehab plan
------------------------------------------------
Tre-Atthaboon Group's creditors, led by Bangkok Bank,=20
yesterday accepted a debt-restructuring plan for the Bt4=20
billion owed by rescheduling repayment over the next 3-12=20
years.=20

The agreement, supervised by the Corporate Debt=20
Restructuring Advisory Committee, was announced as=20
creditors agreed to reschedule debt repayment for the main=20
group over the next 12 years and its subsidiaries over the=20
next three to four years.=20

Of the debt, Bt3.7 billion was owed by Tre-Atthaboon and=20
the remaining Bt300 million by its subsidiaries. Bangkok=20
Bank was owed a total of Bt1.6 billion.  Chatchai Tre-
Atthaboon, managing director of the local plastic=20
manufacturing company, said if the company failed to comply=20
with the plan, its creditors were entitled to hold a=20
maximum stake of 75 per cent in the company via a debt-
into-equity conversion.=20

"How much stake the creditors would be entitled to depends=20
largely on the company's future earnings," he said.=20
However, even though creditors could end up holding a=20
majority stake, they would not be able to influence the=20
company's managerial control, Chatchai said.=20

"But we have to run the company with transparency. That's=20
what the creditors have asked for," he said, adding that to=20
ensure transparency, the company was required to submit=20
financial statements every quarter, while earning=20
projections would also be reviewed quarterly.  (The Nation =20
24-Feb-2000)

UNILEVER PLC: Major restructuring in planning
---------------------------------------------
Major streamlining of the supply chain and administrative=20
structure of Unilever Plc will help lift the world's=20
largest consumer goods group to a new level of growth and=20
profitability, Chairman Niall Fitzgerald said yesterday.

In remarks following the unveiling of a sweeping corporate=20
restructuring, Mr Fitzgerald said 25,000 jobs would be cut=20
over five years and as many as 100 manufacturing and=20
distribution sites sold, as Unilever takes a hefty swing at=20
costs.=20

"We're also making major moves to simplify our=20
administrative organisation and put it more on a regional=20
and, in some cases, global basis. That will take=20
significant costs out," said the 33-year company veteran.

He said the job cuts, representing 10% of the global=20
workforce, would be made through attrition where possible.=20
The cuts were set mostly for Europe and the Americas,=20
Unilever said.  Theo Koenders, chairman of Unilever Thai=20
Holding, said last night that it was premature to comment=20
on how the parent company's decision would affect Thai=20
operations.

But his deputy, Kannikar Chalitaporn, said the impact was=20
expected to be limited in Thailand because "we perform=20
soundly".  Unilever Thai Holding employs 2,000 workers and=20
is recruiting more.  Mr Fitzgerald's announcement pleased=20
investors. Unilever's stock price in early trading was up=20
7.7% in Amsterdam and 6% in London, moving off rock-bottom=20
lows hit in recent months as Unilever's top-line growth has=20
slowed and markets have lost interest in consumer goods=20
stocks.

As part of the restructuring, Unilever will make "radical=20
changes" to its supply chain to focus on 150 key sites. It=20
will focus promotion and development on 400 key brands out=20
of its stable of roughly 1,600 brands. "The consequence of=20
that is that the tail brands will fall away in due course=20
and that we will be able to simplify and make major=20
improvements to the supply chain and to the way in which we=20
do business generally," Mr Fitzgerald said.  (Bangkok Post =20
23-Feb-2000)


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

Troubled Company Reporter -- Asia Pacific is a daily=20
newsletter co-published by Bankruptcy Creditors' Service,=20
Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,=20
DC USA. Darryl Henning, Managing Editor, Feliz Ordona and=20
Cristina Pernites, Editors.

Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale=20
or publication in any form (including e-mail forwarding,=20
electronic re-mailing and photocopying) is strictly=20
prohibited without prior written permission of the=20
publishers.  Information contained herein is obtained from=20
sources believed to be reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6=20
months delivered via e-mail. Additional e-mail=20
subscriptions for members of the same firm for the term of=20
the initial subscription or balance thereof are $25 each.=20
For subscription information, contact Christopher Beard at=20
301/951-6400. =20

=09=09*** End of Transmission ***=09=09=09