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=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

           Friday, February 25, 2000, Vol. 3, No. 39

                          Headlines


* A U S T R A L I A *

NATIONAL TEXTILES: Workers celebrate, creditors fight on=20
NATIONAL TEXTILES LTD.: Ex-manager in court win


* C H I N A  &  H O N G  K O N G *

UNION BANK OF HONGKONG: ICBC eyes Union Bank, says report=20


* I N D O N E S I A *

PT DHARMALA SAKTI SEJAHTERA: Court starts bankruptcy trial=20
PT INTI INDORAYON UTAMA: Economics team to decide fate =20


* J A P A N *

TOMEN CORP.: Toyota Tsusho to become top shareholder =20
TORAY INDUSTRIES INC.: Projects annual loss


* K O R E A *

DAEWOO MOTOR: 5 carmakers submit buy-bids
DAEWOO MOTOR: Labor groups step up resistance=20


* M A L A Y S I A *

PERUSAHAAN OTOMOBIL NASIONAL: Has Q3 loss,though sales rise
SRIWANI HOLDINGS: Proposing restructure with capital redux
TIME ENGINEERING: Considering media/Internet alliance
TIME ENGINEERING: Hopes to complete debt revamp by April


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

BW RESOURCES CORP.: Gov't determined to pursue probe
UNIWIDE GROUP: Creditor seeks plan implementation stop
UNIWIDE GROUP: Casino, SM Group in talks for co-venture?


* S I N G A P O R E *

CLOB INT'L: Things quiet on all fronts
L&M GROUP INVESTMENTS: Narrows annual loss


* T H A I L A N D *

CP POKPHAND CO.: To sell off stakes in 3 units for debts
iTV PLC: Directors to vote on recapitalization
KUANG PEI SAN PRODUCTS: Creditors approve rehab plan
PETROLEUM AUTH.OF THAILAND: Must sell natural gas at loss
SEMICONDUCTOR VENTURES: Directors approval capital plan
THAI MILITARY BANK: Negative market dampens fund-raising


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A U S T R A L I A
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NATIONAL TEXTILES: Workers celebrate, creditors fight on=20
--------------------------------------------------------
As the 300 retrenched National Textiles workers celebrate=20
the signing of a deal yesterday which gives them their full=20
entitlements, some unsecured creditors are planning to=20
fight on.

Bill Drain of Hunter Valley firm Teweld is owed $3,000 but=20
predicts he will get none of that back, following the=20
signing of the deed of company arrangement yesterday.=20
Mr Drain says there should be insurance available so=20
unsecured creditors, such as tradesmen, are not left out-
of-pocket when firms like National Textiles close down.=20

"There should be a body and I use the term insurance set up=20
so that all creditors get paid if a company goes to the=20
wall," he said.  "Now it could be set up in such a way that=20
if a company goes to the wall and meets all of its=20
commitments can recover some of this money to re-fire up=20
but there must be a way we can set an insurance up to=20
safeguard the creditors in some way." (ABC News Online  23-
Feb-2000)

NATIONAL TEXTILES LTD.: Ex-manager in court win
-----------------------------------------------
A former senior manager with the controversial National=20
Textiles Ltd, Mr Stephen Douglas Martin, retrenched in=20
1997, has won damages of $416,447 under the unfair, harsh=20
or unconscionable employment contract provision of the=20
Industrial Relations Act of NSW

But Mr Martin's court victory, which also included National=20
Textiles paying his legal fees, may be hollow as the=20
company is in voluntary administration and does not appear=20
to have put funds aside in its books in case Mr Martin won=20
his suit against his former employer.

Mr Martin joined the miller in 1968 as a mail boy and was=20
the converting mill manager when made redundant in July=20
1997.  In his 29-year career with the company he also held=20
the position of assistant general manager, operations.

Attempts to clarify the payment situation with the=20
administrator, Mr John Star, failed. A spokesman for Mr=20
Star said he was aware of Mr Martin's award but it did not=20
appear to have been be factored into the list of creditors=20
or employees awaiting payment.

Mr Martin's journey through the NSW Industrial Relations=20
Commission took two and a half years and may have concluded=20
a few weeks too late for him to receive a cent.  Justice=20
Schmidt's judgment noted that Mr Martin participated in a=20
management buy-out in 1992 and became a shareholder in the=20
company about the same time.

The redundancy package the court ordered National Textiles=20
to pay Mr Martin includes 12 months' salary in lieu of=20
notice, including superannuation, motor vehicle component,=20
bonus scheme entry fee of $128,135, 58 weeks' salary on the=20
total salary package, being $142,919, an additional 25 per=20
cent loading on this figure amounting to $35,730, annual=20
and long service leave payments totalling $39,666, accrued=20
annual leave of two weeks and accrued bonus entitlement and=20
severance payments already paid.

The court heard that when Mr Martin's employment was=20
terminated in 1997 he was advised that he would be paid 52=20
weeks' severance pay, calculated by reference to the=20
various elements of his package, but not what Mr Martin=20
described as a 5 per cent salary sacrifice arrangement=20
relating to a bonus scheme.

Mr Martin was part of the team under which 25 employees,=20
all less senior that Mr Martin were made redundant. Mr=20
Martin, being "someone the employees knew and trusted" was=20
chosen to break the news of the retrenchment to the=20
employees.  The court heard that after the bonus scheme was=20
introduced, no bonuses were paid because the scheme targets=20
were not met by National Textiles. It was later=20
discontinued.  The only employee who received any bonus was=20
National Textiles's chief executive, Mr Derek Hodge.=20
(Sydney Morning Herald  23-Feb-2000)


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C H I N A  &  H O N G  K O N G
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UNION BANK OF HONGKONG: ICBC eyes Union Bank, says report=20
---------------------------------------------------------
The Industrial and Commercial Bank of China, one of the=20
mainland's four biggest state-owned commercial banks, is=20
reportedly buying Union Bank of Hong Kong.  Union Bank is=20
part of the China Merchants Group.=20

A mainland newspaper, China Securities, quoted a senior=20
ICBC official yesterday as saying that the mainland bank=20
plans to acquire the Hong Kong bank to increase its=20
business volume in the territory.  Union Bank chairman and=20
China Merchants Holdings's vice president Fu Yuning said=20
during Union Bank's announcement of its final results for=20
last year that Merchants was in talks with several=20
financial institutions to forge a strategic partnership in=20
order to enhance shareholder value but no conclusion had=20
been reached.=20

Haydn Meadows, a banking analyst at BNP Prime Peregrine=20
said he would not be surprised to see a Union Bank sale=20
this year.=20

"It hasn't been announced but there has been a lot of=20
speculations (about the buy-out), especially after Union=20
Bank talked about restructuring in its final result=20
announcement," he said.=20

Last Thursday, Union Bank reported a net loss of $545=20
million for 1999. The bank also announced its plan to set=20
up a wholly-owned asset management company (AMC) to=20
maximise the recovery of mainland non-performing loans=20
(NPLs).  It will transfer all its $2.49 billion mainland=20
NPLs to the new company. =20

Mr Meadows, however, said he was sceptical if the alleged=20
new owner was able to help the bank in collecting mainland=20
debts.  "It is not because of the new owner but because of=20
the nature of the bad loans," he said. "Most of them were=20
used to finance property which is rather difficult to=20
recover."

Another banking analyst, who preferred not to be named,=20
said a change of ownership for the bank was a positive move=20
as it would provide increased support.  "If the ownership=20
is transferred from China Merchants to ICBC, Union Bank=20
will receive bigger support since ICBC itself is a bank. It=20
is also easier for Union Bank to obtain facilities from=20
ICBC," she said.=20

There would be increased synergies between the two banks=20
especially in the mainland market.  "ICBC may transfer part=20
of its trade finance business to Union Bank. The new owner=20
will definitely bring new business to the bank."=20

The market is also speculating on the price to be paid for=20
Union Bank. The banking analyst said it depended on how the=20
new owner saw the bank's future prospects.=20

"The price range could be between one-fold to two-fold of=20
the bank's existing book value." She also projects a=20
positive impact of the acquisition on the share price.=20

"The impact will be positive as it is purchased by one of=20
the four biggest commercial banks on the mainland."

In the long term such an acquisition was good as it helped=20
enhance the competitiveness of Union Bank in the Hong Kong=20
market. An analyst estimated the selling price of Union=20
Bank to be between $1 billion to $2 billion if China=20
Merchants sells off its 53 per cent.  (Hong Kong Standard =20
23-Feb-2000)
=20

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I N D O N E S I A
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PT DHARMALA SAKTI SEJAHTERA: Court starts bankruptcy trial=20
----------------------------------------------------------
The Jakarta Commercial Court will hold the first hearing of=20
a US$2.4 million bankruptcy case between plaintiff PT Hanil=20
Bakrie Finance Corporation and defendant PT Dharmala Sakti=20
Sejahtera on Wednesday.=20

"Tomorrow is the first court hearing for our case," said=20
the plaintiff's lawyer, Rafael Adrian of Faisal &=20
Panggabean law firm, on Tuesday.=20

It is the second bankruptcy attempt by Hanil Bakrie against=20
Dharmala Sakti after its first attempt was foiled early=20
last year when the court ruled in favor of the defendant.=20
The first attempt was rejected as Dharmala Sakti was able=20
to convince the court that it had a debt restructuring=20
agreement with the plaintiff.  The validity of the debt=20
agreement, which according to Hanil never existed, was=20
backed by a Supreme Court decision.=20

"We actually did not see it as an agreement. It was an=20
offer letter signed by them but never approved by Hanil=20
Bakrie as there was no counter- sign on the offer letter,"=20
Rafael said about the agreement.=20

According to the controversial restructuring agreement, the=20
maturity of the Dharmala Sakti debt was rescheduled from=20
July 7, 1998 to July 7, 1999.  "Hanil Bakrie conceded to=20
this new 1999 maturity, but then they still failed to pay,"=20
Rafael added.=20

Meanwhile, president of Hanil Bakrie said he had been=20
cordial toward Dharmala Sakti before finally deciding to=20
take the case to the courts.  He hopes the commercial court=20
will recognize that no one dares to make an investment in=20
Indonesia without confidence of getting their money back.=20

"We want to see justice in Indonesia. We consider the=20
bankruptcy petition against Dharmala Sakti as a litmus test=20
for the rule of law in Indonesia under newly elected=20
President Abdurrahman Wahid," he said.=20

Dharmala Sakti is a holding company of Dharmala Group,=20
owned by Gondokusumo family.  There are at least three=20
companies affiliated to Dharmala Group that have been=20
declared bankrupt, namely, PT Dharmala Agrifood, PT Putra=20
Surya Multidana and foreign affiliate Detron Ltd. of=20
Singapore.=20

Another, PT Aster Dharma, was also declared bankrupt, but=20
later overruled by the Supreme Court through its civil=20
review decision late last year. (Jakarta Post  23-Feb-2000)

PT INTI INDORAYON UTAMA: Economics team to decide fate =20
------------------------------------------------------
State Minister of Environment Sonny Keraf said on Tuesday=20
he was waiting for a decision from the Cabinet's economics=20
team over his proposal to close the pulp and rayon plant=20
belonging to PT Inti Indorayon Utama.=20

"But if the decision laid with me, it would be that=20
Indorayon must be closed," Sonny told The Jakarta Post.=20

He said "there are no other considerations" which could=20
support the continuation of the company's operation near=20
Lake Toba, in Porsea, North Sumatra.  He said economics=20
ministers under Coordinating Minister for the Economy,=20
Finance and Industry Kwik Kian Gie would make a joint=20
decision on his proposal.=20

But he did not explain whether a new audit of the plant was=20
needed by the team to decide Indorayon's fate.  State=20
Minister of Investment and State Enterprises Development=20
Laksamana Sukardi outlined a plan to have an independent=20
audit team to determine whether to close or relocate=20
Indorayon's plant.=20

If the planned audit proceeds, it will be the third after=20
the Environmental Impact Management Agency (Bapedal) and=20
the American auditor, Labat-Anderson, who was appointed by=20
the ministry of industry in 1995.  Indorayon said on Monday=20
that it was ready to be audited and to bear the audit cost=20
but asked the government to give it two months to prepare=20
for it.=20

Sonny, nevertheless, said earlier that another audit was=20
not necessary because it was too late and would cost the=20
government more as his office had enough proof that the=20
company's operation had caused tremendous environmental=20
damage to the area.=20

Meanwhile, Sonny also attacked gold and copper mining=20
company PT Freeport Indonesia on Tuesday for what he called=20
a "biased" environmental audit on its operation by American=20
auditor Montgomery Watson.=20

"The result of Freeport's audit covers up bad things with=20
soft language. For instance, something which did not=20
benefit Freeport was written in the report as Freeport=20
would meet regulations numbered this and that.=20

"I totally doubt the objectivity of this American auditor=20
Montgomery Watson," he said.=20

He noted that his office found irregularities in the audit=20
report, especially on the tailing disposal system,=20
environmental management and the environmental work plan.=20
Because of that, Sonny said his office would audit, and=20
perhaps redo, the environmental impact analysis on=20
Freeport.  Sonny added that the government was forming an=20
interdepartmental team to make a comprehensive analysis on=20
Freeport, not only on its environmental management system=20
but also its compliance with its contracts of work with the=20
government.=20

"Freeport's problems do not only deal with environmental=20
issues, but also with the contracts of work, and therefore,=20
the government will form a joint team consisting of=20
representatives from the Ministry of Mines and Energy, my=20
office, Bapedal and the Ministry of Finance.=20

The House of Representatives recommended earlier that the=20
government review Freeport's contracts of work as it=20
suspected the company of violating some terms in them.=20
Responding to the House recommendation, the mines and=20
energy minister promised that the government would form a=20
team to evaluate Freeport's compliance with its contracts=20
of work.=20

He also promised to review regulations which could have=20
been used by Freeport as an alibi to not heed articles in=20
the contracts, especially those on divestment requirements.=20
(Jakarta Post  23-Feb-2000)


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J A P A N
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TOMEN CORP.: Toyota Tsusho to become top shareholder =20
----------------------------------------------------
Toyota Tsusho Corp. (8015), a trading house in the Toyota=20
Motor Corp. (7203) group, has entered the final stages of=20
talks aimed at taking a stake in and becoming the top=20
shareholder in Tomen Corp. (8003), The Nihon Keizai Shimbun=20
learned Tuesday.

In the deal, Toyota Tsusho will gain a roughly 10% stake in=20
Tomen by underwriting a private placement of shares that=20
the trading house will issue by the end of September.
As a result, Toyota Tsusho will surpass Tokai Bank (8321),=20
which has a 5% stake in Tomen, to become the top=20
shareholder in the trading house, which is in the midst of=20
restructuring. The two trading houses also plan to form a=20
wide-ranging business tie-up.

Both of the trading houses use Tokai Bank as their main=20
bank. Tomen worked through the bank to ask Toyota Tsusho to=20
take a stake in it.  Tomen expects to book an extraordinary=20
charge in excess of 400 billion yen for the fiscal year=20
ending March 31 due to failed real estate investments and=20
diversification attempts.

The ailing Tomen has announced a plan whereby Tokai Bank=20
and its other main financial institutions will waive about=20
200 billion yen in loans. Also under the plan, Tomen will=20
draw down its capital by 33 billion yen at its shareholders=20
meeting at the end of June before receiving an injection of=20
funds totaling 30 billion yen.

Of the 30 billion yen capital increase, Toyota Tsusho plans=20
to participate in the 15 billion yen being allocated for=20
nonfinancial institutions. The firms are now discussing the=20
size of Toyota Tsusho's stake. Tokai Bank also plans to=20
take part in the capital increase.

Toyota Tsusho, which deals mainly in steel products and=20
machinery, and Tomen, which mostly handles food,=20
agrochemicals and electric power, have few overlapping=20
businesses and aim to form a comprehensive tie-up. (Nikkei =20
23-Feb-2000)

TORAY INDUSTRIES INC.: Projects annual loss
-------------------------------------------
Toray Industries Inc. forecast a group net loss of 65=20
billion yen ($58.7 million) for the year ending March 31,=20
compared with its prior forecast for group net profit of 12=20
billion yen for the year.

The company said the main reason for the lower projection=20
is that it is paying retirement allowances earlier than=20
planned because of accounting changes.

Toray also lowered its forecast for group pretax profit by=20
29% of 24 billion yen and reduced its group sales forecast=20
by 3.9% to 990 billion yen. On a parent-only basis, Toray=20
forecast sales of 510 billion yen, pretax profit of 25=20
billion yen and a net loss of 44 billion yen for the year.
(The Asian Wall Street Journal  22-Feb-2000)


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K O R E A
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DAEWOO MOTOR: 5 carmakers submit buy-bids
-----------------------------------------
Five carmakers, including US giants General Motors Corp=20
(GM) and Ford Motor Co, have applied to take over South=20
Korea's troubled Daewoo Motor Co.=20

According to local news reports, the two American firms=20
sent in their tenders just before the Tuesday midnight=20
deadline along with South Korea's Hyundai Motor, German's=20
DaimlerChrysler and Italy's Fiat.  Officials of the auction=20
office, however, declined to say which companies had=20
submitted bids for Daewoo Motor.=20

Of the six carmakers which had been reportedly invited to=20
jpin the auction, only Volkswagen AG of Germany stayed=20
away, Yonhap News Agency said.  The Daewoo Restructuring=20
Coordination Committee said that among the five bidders,=20
one or two would be selected as preferred bidders within=20
three months for detailed negotiations.=20

The sale of Daewoo Motor is a part of the process of=20
dismantling the debt-ridden Daewoo Group to avert the=20
world's biggest bankruptcy. Daewoo Motors, formerly the=20
nation's second biggest carmaker with an annual production=20
capacity of around two million units, is saddled with=20
around US$16bil in debt.  (Star Online  25-Feb-2000)

DAEWOO MOTOR: Labor groups step up resistance=20
---------------------------------------------
Domestic labor groups are intensifying their resistance to=20
a foreign takeover of Daewoo Motor.=20

Daewoo Motor's labor union said yesterday it will launch=20
various protests today, including an overnight sit-down, to=20
thwart any attempt to sell off the company to foreigners.=20
Unionists at Hyundai Motor, Kia Motors and Ssangyong Motor=20
also vowed to support the anti-foreigner drive.=20

Adding to the confusion, Hyun-dai Motor and the Korea=20
Federation of Small & Medium Businesses (KFSB) are at odds=20
over the formation of a strategic alliance. On Wednesday,=20
KFSB Chairman Park Sang-hee told reporters that the=20
federation-led consortium was pushing to tie up with=20
Hyundai Motor and DaimlerChrysler to jointly acquire Daewoo=20
Motor.=20

Hyundai Motor rejected Park's remarks, saying that the=20
company has not contacted any domestic or foreign parties=20
for talks on an alliance. But Yoo Jong-jin, a Hyundai Motor=20
spokesman, refused to confirm or deny the alliance with the=20
KFSB and DaimlerChrysler, suggesting that a three-way tie-
up may be struck at the last moment.=20

"The bidders are battling to gain the upper hand in=20
alliance talks. The coalition picture will likely be=20
clarified only before the creditors' selection of the=20
successful bidder in May," said an industry watcher.=20

So far, Ford Motor, General Motors, Hyundai Motor and Fiat=20
have presented letters of intent (LOI) to take part in the=20
Daewoo auction, while DaimlerChrysler is likely to send its=20
LOI today. =20

Meanwhile, the Metal Workers Union, to which Daewoo Motor=20
and all other local automakers belong, threatened yesterday=20
to launch a nationwide campaign during April polls to=20
defeat National Assembly candidates who fail to oppose a=20
foreign takeover of the Daewoo carmaker. To that end, the=20
union will send questionnaires to all candidates, asking=20
them to clarify their positions on the matter.=20

Separately, Daewoo Motor unionists have organized a sit-in=20
in front of the Daewoo Restructuring Committee, which is in=20
charge of the automaker's auction, a union spokesman said.=20
He also said the unionists would stage a partial walkout,=20
starting on Feb. 29, while a variety of demonstrations are=20
also planned.=20

Meanwhile, as an alternative to a foreign takeover, the=20
unionists are demanding Daewoo Motor be turned into a=20
public corporation through debt-for-equity swaps by=20
creditors. Daewoo union workers have also stated their=20
objection to Hyundai's control of Daewoo, warning of=20
layoffs, plant closures and other adverse effects.=20
(Korea Herald  25-Feb-2000)


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M A L A Y S I A
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PERUSAHAAN OTOMOBIL NASIONAL: Has Q3 loss,though sales rise
-----------------------------------------------------------
Perusahaan Otomobil Nasional Bhd, Malaysia's biggest=20
carmaker, lost money in its fiscal third quarter even as=20
its auto sales rose.=20

The company, which makes seven out of 10 new cars sold in=20
Malaysia, lost 21.2 million Malaysian ringgit (S$9.5=20
million) in the three months ended Dec 31.  The company=20
didn't report quarterly results in the year-earlier period.=20
Sales rose 6 per cent to RM1.68 billion. It didn't give any=20
reason for its performance.=20

Proton, as the company is known, earned RM7.1 million in=20
its fiscal second quarter.  The loss pulled down the=20
company's shares, which were 15 sen, or 1.9 per cent, lower=20
at RM7.40. Analysts say that unlike other carmakers such as=20
UMW Holdings, Proton hasn't done enough to pare costs. UMW,=20
which sells cars for Toyota Motor Corp, slashed jobs and=20
raised prices to survive.  For the nine months ended Dec=20
31, Proton lost RM19.4 million, or 3.6 sen a share.=20

A poll of 24 analysts' forecasts compiled by Ibes=20
International predicts Proton will probably post a profit=20
of 8.4 sen a share for the year ending March 31. (Singapore=20
Business Times  23-Feb-2000)

SRIWANI HOLDINGS: Proposing restructure with capital redux
----------------------------------------------------------
Duty-free shop operator Sriwani Holdings Bhd has proposed a=20
restructuring exercise involving capital reduction, a=20
rights and special issue, the purchase of a London hotel=20
and a debt restructuring scheme.=20

The company said in a statement to the KLSE that the=20
exercise involved a cancellation of 50 sen from every=20
existing ordinary share of RM1, a rights issue of 60=20
million new RM1 shares on the basis of 1-for-1 after the=20
capital reduction and a special issue 150 million new=20
shares to Datuk Seri George Lim alias Muang Ng We at RM1=20
each.=20

The company also proposes to buy the entire capital of=20
Coursevillee Holdings Ltd (CVL), which owns the Blakes=20
Hotel in London for RM150mil and the entire capital equity=20
of Emas Kerajang Sdn Bhd, which owns and operates Padang=20
Besar duty free complex for RM13mil.=20

Sriwani also said there would also be a debt restructuring=20
involving a waiver of debts, immediate cash settlement and=20
conversion of residual debts to equity-linked instruments.=20
The Sriwani group debts amount to RM721.3mil based on its=20
unaudited accounts as at Dec 31 last year.=20

It said the exercise would enable the company to reduce its=20
burden of having a huge accumulated losses, raise fresh=20
funds to finance working capital and restore its financial=20
position.  Sriwani also said the move would enable the=20
group to diversify its portfolio of assets to include a=20
leading duty-free retailing operations in Perlis and a=20
prime property in London which would provide stable income=20
to the group.=20

As the proposed special issue and CVL acquisition would=20
result in Lim and CVL shareholders owning up to 69.1% stake=20
in the company triggering a mandatory general offer under=20
the Malaysian code of takeovers and mergers, Sriwani said=20
Lim and CVL shareholders would apply to the Securities=20
Commission for a waiver to acquire the remaining shares.=20
(Star Online  25-Feb-2000)

TIME ENGINEERING: Considering media/Internet alliance      =20
-----------------------------------------------------
Time Engineering Bhd is not ruling out a future alliance=20
with a media group and Internet company. It said such an=20
alliance would be in line with its growing focus on the=20
Internet and electronic-commerce business.=20

The company also denied of an alliance with New Straits=20
Times Press Bhd (NSTP) and Sistem Televisyen Malaysia Bhd=20
(TV3). In a reply to a KLSE query in the Sun newspaper,=20
Time said: "Presently we are not aware of nor in=20
discussions with NSTP and TV3."  (Star Online  25-Feb-2000)

TIME ENGINEERING: Hopes to complete debt revamp by April
--------------------------------------------------------=20
Time Engineering hopes to disclose the strategic partner of=20
its Time dotCom and complete its debt revamp exercise by=20
April to pave the way for the listing of Time dotCom on the=20
Kuala Lumpur Stock Exchange.=20

Phang Shyue Ming, managing director of listed Time=20
Engineering, yesterday expressed confidence in finding a=20
foreign partner to acquire a 24.6 per cent stake in Time=20
dotCom.=20

"Definitely. With a clean balance sheet, the strategic=20
partner is more willing to talk to us," he told reporters=20
when asked whether the company was having any luck in=20
finding a strategic partner.=20

However, he declined to identify the potential suitor or=20
its country of origin.  The market continued to be abuzz=20
with talk that the foreign party could be Hongkong's=20
Hutchison Whampoa or Teleglobe of Canada.  Mr Phang also=20
confirmed that the offer from Singapore Technologies -- the=20
highest among three bidders for Time Engineering's telco=20
businesses -- has lapsed.=20

Instead, Time Engineering, which is a 47 per cent associate=20
of Renong Bhd, will be restructuring its 4.5 billion=20
Malaysian ringgit (S$2 billion) worth of debts. Time dotCom=20
was set up to own all of Time Engineering's telco units --=20
Time Telecoms, Time Wireless, Time Reach and TimeSat.=20

A 24.6 per cent stake will then be sold to a foreign=20
partner at an indicative price of RM3.50 each. If=20
successful, Time Engineering will retire most of its debts=20
and end up with 53.5 per cent in the enlarged share capital=20
of Time dotCom.=20

To attract the foreign partner, Time Engineering has=20
embarked on more marketing plans. Yesterday, Time Wireless=20
signed a pact with Putra-LRT, which is part of Renong, to=20
cross-sell their services. New subscribers who sign up as=20
customers of Time Wireless' Adam mobile service will=20
receive stored value cards worth up to RM180 for Putra's=20
monorail service.=20

Ng Eng Cheong, managing director of Time Wireless, expects=20
the subscriber base of its mobile phone service to almost=20
double to 450,000 users, or a 16 per cent market share,=20
from 230,000 by the end of this year.  The company will=20
spend some RM30 million to upgrade its network by=20
installing equipment worth more than RM200 million. Time=20
Engineering bought the equipment before the recession in=20
1998.=20

And last week, Time dotCom roped in Nasdaq-listed Pacific=20
Internet, which is part of Singapore's SembCorp Industries,=20
as a partner of its Internet service provider arm. It has=20
projected a doubling of its subscribers to 250,000 in ten=20
months.  Besides boosting its mobile and Internet=20
businesses, Time dotCom has projected a jump in fixed-line=20
users of its fibre-optic network to 300,000 from 100,000 by=20
December.  (Singapore Business Times  23-Feb-2000)


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P H I L I P P I N E S
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BW RESOURCES CORP.: Gov't determined to pursue probe
----------------------------------------------------
Malaca=A4ang is determined to pursue the investigation of the=20
alleged insider trading and price manipulation of BW=20
Resources Corporation shares despite a temporary=20
restraining order (TRO) issued by a lower court against the=20
Philippine Stock Exchange (PSE).=20

"The government will not stop its probe. It will file a=20
motion for reconsideration so it can continue the=20
investigation and find out who are guilty of violating=20
trading rules," President Estrada said in Tagalog during=20
his regular radio program yesterday morning.=20

While the TRO issued by the Pasig Regional Trial Court can=20
be considered a setback, Mr. Estrada said it is a right=20
available to concerned parties.=20

"This is how it is in a democracy. We have what we call due=20
process, which I sometimes refer to as overdue process of=20
law," the President quipped.=20

But Securities and Exchange Commission (SEC) chairman=20
Perfecto R. Yasay, Jr. believes the PSE should not drop its=20
investigation without a fight.  In an interview with=20
reporters yesterday, Mr. Yasay said the PSE should=20
challenge the TRO issued by Pasig RTC Judge Rodolfo R.=20
Bonifacio.=20

"It was the SEC that gave the PSE its self-regulatory=20
organization status...If you follow this flow of authority,=20
(then) the RTC has no jurisdiction over the BW Resources=20
Corp. case. I hope the PSE will be able to raise this=20
jurisdictional issue immediately," he said.=20

The PSE, in fact, is planning to contest the TRO.  A=20
ranking exchange official told BusinessWorld that the PSE=20
intends to hire a legal counsel to guide it in the proper=20
action to be taken.  As things turned out, beleaguered BW=20
Resources stockholder Dante Tan clinched by the skin of his=20
teeth a two-day extension of the 72-hour TRO.=20

Pasig Regional Trial Court Judge Jose R. Hernandez set for=20
hearing on Monday the issue on whether or not the=20
injunction against the PSE should be extended to 20 days,=20
preventing PSE and its Business Conduct and Ethics=20
Committee (BCEC) from further reviewing the result of the=20
investigation earlier conducted by the Ruben L. Almadro,=20
head of PSE's Compliance and Surveillance Group (CSG).=20
The original three-day TRO, promulgated on Wednesday=20
afternoon, was set to expire at 2 p.m. tomorrow.=20

Under the Rules on Civil Procedure, unless a hearing is=20
conducted on the propriety of extending the TRO, it will be=20
lifted automatically.  The hearing is required to be=20
conducted before the expiration.  A BusinessWorld source at=20
the Office of the Clerk of Court of the Pasig RTC said Mr.=20
Tan's lawyers were "up in arms" over the initial refusal of=20
Mr. Hernandez to set the case for hearing.=20

"Judge Hernandez was ready to allow the TRO to lapse until=20
Mr. Tan's lawyers threatened to file an administrative=20
complaint against him," said the court insider.=20

The case was raffled off to Mr. Hernandez, presiding=20
magistrate of Branch 158, yesterday afternoon.  The source=20
said after the 1 p.m. raffle yesterday, Mr. Tan's right-
hand man and lead counsel, Jose Rivera, Jr., immediately=20
asked Mr. Hernandez to call all parties to a hearing before=20
the end of office hours yesterday since today is a special=20
non-working holiday.=20

"Mr. Rivera knew very well the TRO will automatically lapse=20
on Saturday. Inaction on the part of Judge Hernandez is=20
tantamount to junking the case outright," said the source.=20
But when Mr. Rivera asked the Clerk of Court to require Mr.=20
Hernandez to schedule a proceeding, he was told the judge=20
"could not be forced to do anything."=20

The lawyer then threatened to file a complaint against the=20
judge.  He was advised to "raise the matter to Judge=20
Bonifacio, who handles all Pasay RTC judges."  Mr.=20
Bonifacio, however, could not be reached for comment.=20
It was only later in the afternoon that Mr. Hernandez=20
acceded to the request for a hearing.  The proceeding is=20
set for February 27 at 2 p.m.=20

Even the government's Economic Coordinating Council (ECC)=20
feels the case is too important and wants a quick but fair=20
resolution.  Socioeconomic Planning Secretary and ECC=20
member Felipe Medalla yesterday said a two-year=20
investigation "is not acceptable."=20

"Then, the DoF will have to take action...They are talking=20
about the BW case at the ECC. But the last thing we want to=20
do is appear that we are preempting the SEC," he added.=20

Private sector representative to the ECC Margarito Teves=20
said a two-year investigation will be a weight on the stock=20
market and will affect investor sentiment towards the=20
country.  "By and large, the private sector wants to get=20
this over with because it is dragging down investor=20
confidence," he said.=20

On the SEC's part, Mr. Yasay said it will continue with its=20
investigation.  "We will issue show cause letters on=20
Monday...we will also summon parties who can shed light on=20
the case, like settlement banks and clearing houses," he=20
said.=20

Meanwhile, in a memorandum to Finance Secretary Jose T.=20
Pardo, Mr. Yasay said the commission is "bound strictly by=20
its rules of confidentiality" and would not make public the=20
results of its probe.=20

Mr. Pardo, upon the President's directive, ordered the SEC=20
"to conduct the investigation...with dispatch and to=20
immediately make public the results of (its) inquiry,=20
providing the Department of Finance with a copy of the=20
investigative report and recommendations."=20

But Mr. Yasay said "publicity and premature disclosure of=20
information...will potentially prejudice the due process=20
right of those investigated, which can lead to trial by=20
publicity, even before criminal cases are filed in court."=20
According to Mr. Yasay, the DoF's intervention may not only=20
"jeopardize the successful prosecution of those against=20
whom a strong prima facie case is established," but may=20
also hamper the restoration of investors' confidence in the=20
securities market.=20

The Senate, meanwhile, wants government prosecutors to step=20
up their investigation even as the SEC conducts its own=20
probe.  Senate banks committee chairman Raul S. Roco=20
yesterday said the Department of Justice (DoJ) is mandated=20
to look into violations of the Revised Securities Act.=20
The senator cited Section 45 of the law, which says that=20
"all criminal complaints for violations of this Act...shall=20
be referred to the...Ministry of Justice for preliminary=20
investigation and prosecution."=20

The same provision states that the investigation,=20
prosecution and trial of cases involving violations of the=20
Revised Securities Act are to be given priority.=20

"The Securities Act requires that when there is violation=20
of the securities law, the DoJ should move, especially in=20
cases where there is mala prohibita," Mr. Roco said in his=20
weekly press briefing, referring to an act that by itself=20
is not necessarily immoral but becomes wrong because of the=20
prohibition.=20

Mr. Roco cited Mr. Tan's failure to disclose to the PSE his=20
more than 10% shareholdings in BW Resources, in violation=20
of Section 36 of the Revised Securities Act and the=20
disclosure rules of the Exchange, specifically: Section 7,=20
Article 19, Book III of the PSE Rule Book.=20

"Supposing you did not report (your more than 10%=20
interest), is that wrong? Whether wrong or not, the law=20
says you must report and if you do not report, you're=20
subject to fine and imprisonment," the lawmaker said.=20

At the same time, Mr. Roco criticized the "bizarre" ruling=20
of the Pasig court, which, he says, has no authority over=20
corporate matters, the SEC's exclusive domain.=20

"Exclusive jurisdiction over the securities law and=20
corporations is given to the SEC. You cannot enjoin people=20
from doing their duty and that is why the restraining order=20
does not cover the SEC," he said.  "The court order=20
reportedly covers the PSE. I don't know what they are=20
talking about. But you cannot prevent people from doing=20
their duty," he added.=20

Mr. Roco also said officers of BW Resources may have=20
violated court rules against forum shopping, or seeking=20
remedies from more than one tribunal at a given time.=20
Mr. Tan sought and got the TRO from the Pasig court last=20
Wednesday, while his associate Jimmy Juan has sought=20
basically the same relief from the Court of Appeals, which=20
has yet to rule on the matter.=20

The PSE has identified Mr. Juan as Mr. Tan's dummy since=20
both supposedly represent the same interest.=20

"There is really forum-shopping," Mr. Roco told reporters.=20
At any rate, Mr. Tan will be given the chance to refute=20
allegations against him during a Senate hearing this=20
Monday, he said.  "What is important is that (Mr. Tan has=20
been) complaining that he was not heard. In the Senate=20
(hearings), he was absent four times...on Monday he will=20
(again) be given the opportunity to air his side," Mr. Roco=20
said.  Mr. Tan has yet to confirm his attendance.=20

Meanwhile, even as the SEC questions the authority of the=20
Finance department to conduct its own investigation on the=20
scandal, the Bureau of Internal Revenue (BIR) said it is=20
also launching its investigation.  In an interview=20
yesterday, Romeo S. Panganiban, BIR deputy commissioner for=20
operations, said despite the criticism, "We are pushing=20
through with the investigation...a committee has already=20
been formed to handle that matter and it will be headed by=20
deputy commissioner (for resource management) Estellita=20
Aguirre."=20

The bureau is now in the process of consolidating the=20
committee's membership and functions.  Mr. Pardo earlier=20
asked Internal Revenue Commissioner Dakila B. Fonacier to=20
check whether or not correct capital gains taxes had been=20
withheld in transactions involving BW Resources.=20
Mr. Pardo said the initial findings of the PSE tend to=20
indicate that up to one billion Philippine pesos ($0.025=20
billion at PhP40.779=3D$1) in capital gains taxes may have=20
been undeclared in several over-the-counter (OTC) BW=20
Resources transactions since 1998.=20

OTC transactions are executed outside the stock exchange,=20
thus avoiding payment of the 10% capital gains tax, the=20
PhP0.50 documentary stamp tax per 20 shares, and the 0.5%=20
sales tax.  Mr. Pardo said the government will file=20
necessary charges if the investigation will prove such=20
allegation to be true.  (Business World  25-Feb-2000)

UNIWIDE GROUP: Creditor seeks plan implementation stop
------------------------------------------------------
Challenging the legality of some provisions under the=20
Uniwide Group's amended rehabilitation plan, creditor East=20
West Banking Corp. (EWBC) recently asked the corporate=20
court to disapprove the implementation of the said plan.=20

In an opposition filed with the Securities and Exchange=20
Commission last Wednesday, EWBC questioned the creation of=20
a special purpose company (SPC) whose shares will be=20
distributed to participating creditors.=20

"Retail business is not among those allied undertakings=20
enumerated under the (General Banking Act), nor is the=20
realty business in the SPC. In other words, the proposal=20
being offered to EWBC to hold shares in non-allied=20
undertakings is outright illegal," EWBC said.=20

Under Uniwide's amended rehab plan, the Gow-owned group=20
proposed to form an SPC, with Metromall as its sole asset.=20
Shares of the said company will then be used as part of=20
Uniwide's repayment plan. The law, however, limits=20
commercial and government banks' investments to such allied=20
undertakings as warehousing, leasing, storage and safe=20
deposit management.=20

EWBC further expressed objections to the proposed=20
settlement of its 134.28-million-peso (US$3.3 million at=20
PhP40.779:US$1) exposure to the beleaguered retail firm by=20
replacing the present collateral -- Coastal Mall Building=20
and Improvements -- with participation in Metromall. EWBC=20
said Metromall is currently mortgaged to Philippine=20
National Bank and Allied Bank.=20

"It is not for Uniwide to unilaterally declare that EWBC=20
will be allowed a participation in the Metromall project=20
since such would involve a novation of the earlier=20
mortgage. Consequently, the consent of the original=20
mortgagees would be required," EWBC added.=20

UNIWIDE GROUP: Casino, SM Group in talks for co-venture?
--------------------------------------------------------
The Uniwide Group's white knight, retail firm Casino=20
Guichard-Perrachon SA (Casino Group) of France, has=20
reportedly approached the management of mall giant SM=20
Group, stirring talks that the foreign investor has found a=20
partner for a joint investment in the cash-strapped=20
warehouse operator.=20

France's second-largest retail chain announced early this=20
month that it is in talks with a big local retail company=20
for joint ownership in Uniwide to create one of the=20
country's leading retail chains.  The local partner will=20
acquire 29.2% stake in the debt-laden group once the Retail=20
Trade Law has been approved as well as help in the=20
development of Uniwide's hypermarket operations.=20

Philippe Bastien, head of Casino's investor relations=20
department, also said should the government fail to=20
liberalize the retail sector, Casino will use the local=20
company as vehicle to purchase the initial investment of=20
60% in Uniwide.  A top SM official confirmed to=20
BusinessWorld yesterday that the French retail company has=20
approached SM's management recently. However, the source=20
said the parties have yet to arrive at a definite=20
agreement.=20

"They've met with us and we talked to them. Basically it's=20
a getting-to-know-you discussion but nothing definite has=20
come of it. As of now, the retail trade law is still=20
pending and it might take several months before it will be=20
approved," the company official said on condition of=20
anonymity.=20

The SM official, however, declined to comment when asked if=20
the mall giant might be interested to become Casino's=20
partner in Uniwide.  Industry sources said the SM Group=20
might be amenable to hold minority ownership in the=20
warehouse operator since it also has minority stake in=20
wholesale distributor Pilipinas Makro, Inc. SM Investments=20
Corp. currently holds 36% in the company with partners=20
Dutch firm SHV Makro (36%) and Ayala Land, Inc. (28%).=20

Flagship firm SM Prime Holdings, Inc. (SMPH) has also=20
expressed interest last year to buy some of Uniwide's=20
properties. SMPH senior vice-president Henry Sy, Jr.=20
confirmed in April last year that preliminary talks were=20
held with Uniwide for the acquisition of selected warehouse=20
club outlets but nothing has come out of it.=20

A Uniwide official, on the other hand, said owner Jimmy Gow=20
is not privy to discussions Casino is conducting with=20
prospective local partners.=20

"Casino has not informed us which retail company they are=20
inviting for a joint ownership in the company. But whoever=20
it is should be willing to be diluted subsequently and=20
we're not sure if SM is willing to do that," the source=20
said.=20

However, with the retail group's huge cash hoard, analysts=20
said an acquisition is not unlikely. The cash position of=20
SMPH alone is seen to have exceeded 11.2 billion Philippine=20
pesos (US$275 million at PhP40.717:US$1) last year=20
with net earnings estimated to have reached PhP3 to PhP3.1=20
billion ($73.7 million).=20

Casino said it expects to finalize the acquisition deal=20
with the local partner by end-June to immediately implement=20
remodelling plans for the Uniwide group. At least PhP12=20
billion ($294.7 million) in sales is expected to be=20
generated once the retail group has successfully=20
restructured its PhP11.1-billion debt by 2001.=20

Meanwhile, the Uniwide source said the group's creditor=20
banks have approved the revised rehabilitation plan=20
submitted to the Securities and Exchange Commission.=20
However, the banks are still negotiating for the valuation=20
of the properties that are included in the debt-for-asset-
swap arrangement.=20

"But we have an independent appraiser for that so we don't=20
consider that as a problem now. Within the week we hope to=20
firm up an agreement with the banks," the source said.=20
(Business World  23-Feb-2000)


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S I N G A P O R E
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CLOB INT'L: Things quiet on all fronts
--------------------------------------
More than 24 hours after the lapse of the officially=20
sanctioned proposal from Effective Capital Sdn Bhd to=20
resolve the Central Limit Order Book (Clob) impasse,=20
authorities on both sides of the Causeway are still keeping=20
mum about any possible solution to the issue.=20

The Singapore Exchange Ltd (SGX) and Central Depository=20
(Pte) Ltd (CDP) were reported yesterday to have said in=20
response to enquiries: "We are still negotiating and are=20
working out a solution. A statement will be issued soon."=20

Individual Clob investors had made anxious phone calls to=20
the two Singapore bodies to express their disappointment=20
that the offer documents for Effective Capital's=20
irrevocable request and authority (IRA) proposal were not=20
distributed to them as the beneficial holders of the frozen=20
Malaysian securities formerly traded on Singapore's Clob=20
exchange.  Both the KLSE and Effective Capital also=20
remained silent yesterday about the issue.=20

Meanwhile, the Securities Investors Association of=20
Singapore (SIAS), the umbrella body representing the=20
interests of over 50,000 Clob investors, said yesterday=20
that it would consider looking at Effective Capital's fresh=20
offer, if it met the conditions mentioned by both the SGX=20
and the SIAS.=20

The SGX had set three conditions for acceptance of the=20
offer--a reduction in the transfer fee from the proposed=20
2%, a shorter release period for the Clob securities, and=20
an assurance by the Malaysian authorities on the transfer=20
of the securities into individual Clob holders' accounts.=20
SIAS president David Gerald told Star Business yesterday=20
that the individual shareholders who were expecting=20
Effective Capital's offer document should sort out the=20
matter with the CDP.=20

Asked whether the CDP had the right to hold back the offer=20
document, he said that as a bare trustee, the CDP had the=20
right to decide what was best for the investors.  Gerald=20
said the SIAS still preferred the offer proposal outlined=20
by Bintang Melewar Sdn Bhd as it was cheaper and had a=20
shorter release period.=20

The Bintang Melewar proposal at this juncture has still not=20
received the full approval of the Malaysian authorities.=20
"We are dealing with reputable personalities, Tunku=20
Abdullah and Tunku Iskandar, who are willing to listen to=20
our side of the story," Gerald said.=20

He said the SIAS would still proceed with legal action if=20
none of the proposals met its requirements.  The Malaysian=20
authorities have maintained that the Clob securities would=20
be transferred to the Finance Ministry upon expiry of the=20
CDP nominee status on June 30.  (Star Online  24-Feb-2000)

L&M GROUP INVESTMENTS: Narrows annual loss
------------------------------------------
L&M Group Investments has narrowed its net loss last year=20
to $1.5 million from $49.7 million, due largely to the=20
absence of the huge exceptional write-offs that dogged it=20
in 1998.=20

Turnover fell 26 per cent to $222.5 million for the year=20
ended Dec 31. Despite registering a loss per share of 0.97=20
cent, net tangible assets per share rose to 31 cents from=20
25 cents previously.  (Star Online  25-Feb-2000)


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T H A I L A N D
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CP POKPHAND CO.: To sell off stakes in 3 units for debts
--------------------------------------------------------
CP Pokphand Company, the main overseas investment arm of=20
Bangkok-based Charoen Pokphand Group - one of the world's=20
largest animal feed and poultry processors - said it plans=20
to sell stakes in three units in Thailand and Indonesia to=20
help pay debt.=20

The company said it plans to sell its 18.7 percent stake in=20
Charoen Pokphand Foods, a company traded on the Stock=20
Exchange of Thailand, now worth $127 million, through the=20
market. Charoen Pokphand Foods is Southeast Asia's largest=20
animal feed maker.  It also plans to sell its stakes in two=20
Jakarta-listed firms, CP Pokphand said in a statement to=20
the Hong Kong Stock Exchange.=20

The company holds a 19.7 percent stake in PT Surya Hidup=20
Satwa, which produces and sells products for raising=20
chickens and shrimp, worth $6 million. It holds a 14.2=20
percent stake in PT Central Proteinaprima, which makes=20
shrimp and poultry feed, worth $7.6 million.=20

"The company has been negotiating a debt restructuring plan=20
with its financial creditors on a confidential basis since=20
May, 1998," CP Pokphand said in the statement. "The=20
restructuring plan covers repayment of debt and the sale of=20
assets by the company and its subsidiaries and is intended=20
to reduce the outstanding amounts to a manageable level."=20

The companies to be sold are controlled by the Chearavanont=20
family, most of whose members live in Bangkok. The Charoen=20
Pokphand Group comprises 300 businesses with interests=20
ranging from animal feed, poultry, telecommunications, real=20
estate, retailing and manufacturing. The group is the=20
world's second-largest chicken processor after Arkansas-
based Tyson Foods.=20

Charoen Pokphand Foods yesterday said its 1999 net profit=20
rose 11 percent from a year earlier to 4.1 billion baht=20
(US$108 million).  Hong Kong-listed CP Pokphand shares rose=20
5.3 percent to HK40 cents today. Bangkok-listed CP Foods=20
gained 3.2 percent to 131 baht.  (Bangkok Post  24-Feb-
2000)

iTV PLC: Directors to vote on recapitalization
----------------------------------------------
The financial future of television station iTV Plc will be=20
decided at a board meeting today, when directors vote on a=20
plan to raise 800 million baht in funds to pay off its=20
outstanding concession fees to the government.

On the table are plans to borrow new funds and seek new=20
investment partners to raise capital. Sarunthorn Chutima,=20
managing director of iTV Plc, said new funds were crucial=20
even after Siam Commercial Bank had agreed to restructure=20
its existing loans. Siam Commercial Bank agreed to=20
reschedule its three-billion-baht in loans to five years,=20
with interest rates lowered to 1% annually.

The bank, together with the Crown Property Bureau and=20
National Finance, controls around 30% of iTV. But Siam=20
Commercial Bank has remained mute on one plan to convert=20
some existing debt to equity.  In any case, iTV says it can=20
reduce its interest costs by 40% through the debt=20
restructuring plan. Even so, new cash is needed to meet the=20
concession payment, due in May.

Market conditions, meanwhile, makes a public share offering=20
difficult, if not impossible, Mr Sarunthorn said.
"The best way for now is to negotiate with the banks for=20
new loans, or raise capital through a new investor," he=20
said.  The company has proposed a private placement of new=20
shares to interested local and foreign investors.  One=20
director said that how a new share offering would be=20
managed depended strictly on Siam Commercial Bank.

"All decisions rest with the bank. The conditions proposed=20
by each investor is different, and its all tied into the=20
restructuring," the director said.

Several investors have proposed taking a stake, but want=20
Siam Commercial Bank to accept a cut in outstanding loans=20
or swap debt for equity.  Siam Commercial Bank executives=20
yesterday met late to discuss possible options regarding=20
its involvement in iTV, but were unavailable for comment.
(Bangkok Post  23-Feb-2000)

KUANG PEI SAN PRODUCTS: Creditors approve rehab plan
----------------------------------------------------
Kuang Pei San Products has reported to the SET that its=20
creditors, who hold 76.57 per cent of its total debts of=20
Bt1 billion, have approved the company's debt restructuring=20
plan.=20

The agreement is: Kuang Pei will repay the loan principal=20
and interest of Bt762.8 million within seven years. The=20
company and its creditors agree to convert Bt55 million=20
debts into equity. The company will issue Bt281 million=20
worth of seven-year certificates of deposit. (The Nation =20
23-Feb-2000)

PETROLEUM AUTH.OF THAILAND: Must sell natural gas at loss
---------------------------------------------------------
The Petroleum Authority of Thailand (PTT) has said it will=20
sell natural gas to Ratchaburi power plant at a special=20
price for a period of six months.=20

Prasert Bunsumpan, President of PTT Natural Gas, said PTT=20
was bound by a contract signed with Myanmar natural gas=20
company to buy 725 million cubic feet per day, starting in=20
the middle of 1996, to supply Ratchaburi power plant and=20
other power plants under contract to buy gas from PTT.=20
The agreement, he said, stipulated that PTT must pay for=20
the gas whether or not it took it.=20

Construction of Ratchaburi power plant, however, was not=20
completed as scheduled in the middle of 1996. As a result,=20
PTT has been obligated to pay for gas even though it was=20
unable receive it.=20

In 1998 alone, PTT paid US$50 million for gas it was unable=20
to take delivery of. In 1999 PTT and 2000 PTT was required=20
to pay $280 million and $260 million, respectively. He said=20
the problem arose when the Electrical Generating Authority=20
of Thailand (EGAT), the plant's owner, was unable to start=20
operating the plant as scheduled due to construction=20
delays. PTT was therefore left with the burden of paying=20
for its contract with Myanmar.=20

Making the situation worse, Myanmar gas prices are higher=20
than that of gas produced in the Gulf of Thailand which PTT=20
feels could result in higher electricity bills. He said in=20
addition to PTT selling gas to EGAT at discount prices,=20
EGAT is also required to complete its 700 megawatt thermal=20
plant by July this year, in order to unload supplies from=20
Myanmar.=20

Tri Energy, another PTT's customer also must complete its=20
power plant by mid-year.  PTT, meanwhile, must finish=20
constructing its gas delivery pipeline for its contractors.=20
If these conditions are met PTT will be able to fulfill its=20
contract requirements.=20

Although Prasert did not disclosed the discount prices, he=20
said that the new prices would allow EGAT to operate=20
competitively with plants that operate on heating oil.=20
The Industry Ministry and National Energy Policy Offices,=20
meanwhile, are trying to re-define long and short term=20
energy policies and re-negotiate this type of contract=20
since PTT was disadvantaged by the deal.=20

Apart from the Myanmar contract, PTT also has signed=20
similar agreements with six natural gas operators in the=20
Gulf of Thailand and is obligated to lose up to $400=20
million a year if it fails to honor these contracts.=20
(Business Day  22-Feb-2000)

SEMICONDUCTOR VENTURES: Directors approval capital plan
-------------------------------------------------------
Semiconductor Venture's board of directors has approved to=20
raise capital by Bt528.545 million to Bt1.321 billion=20
through the issuance of 52.854 million newly issued shares.=20

Of the total, 39.64 million shares will be allocated to its=20
existing shareholders at a ratio of two held shares for a=20
one new share. The remainder will go to its four creditors=20
as part of its debt-restructuring plan.=20

Before recapitalisation the company's board of directors=20
approved the reduction of registered capital via the=20
cancellation of 7.928 million unsold shares. (The Nation =20
23-Feb-2000)

THAI MILITARY BANK: Negative market dampens fund-raising
--------------------------------------------------------
The negative market sentiment does not bode well for Thai=20
Military Bank (TMB) as it plans to re-launch its Bt30-
billion global offering that was cancelled last year=20
following a cool response from offshore investors.=20

Banking analysts concede that the chances of a successful=20
recapitalisation are slim, given the fact that the stock=20
market is slumping and is expected to stay bearish for at=20
least the first six months of this year.  An analyst at KGI=20
Securities One Plc said that TMB was expected to struggle=20
once more in its bid to raise fresh capital as it was=20
largely dependent on market sentiment.=20

"It's really just a matter of hope now. If the market turns=20
positive, the bank may be able to raise new capital as=20
planned. But if it does not go that way, the bank will face=20
another challenge," he added.=20

The military-controlled bank announced over the weekend=20
that it would be ready to stage a global roadshow for a new=20
share offer soon. Thanong Bidaya, the bank's president,=20
said that if the market conditions were not favourable=20
enough to sell new shares, the bank would be forced to opt=20
for another solution.  He did not give any details as to=20
what the other options were.=20

However, investors continued to sell banking shares=20
yesterday, forcing TMB's share price down Bt0.75 to end at=20
Bt11.  The bank was running out of time because with the=20
erosion of its capital base, TMB could only delay its new=20
capital-raising plan until the end of the second or third=20
quarter at the latest, one analyst said.=20

TMB's Bank for International Settlements capital-adequacy=20
ratio is currently at 10.05 per cent of total risk-weighted=20
assets, higher than the minimum requirement of 8.5 per=20
cent.  The bank has already reserved around 70 per cent for=20
loan-loss provision as of the end of 1999.  After the poor=20
response forced the bank to put its recapitalisation plan=20
on hold last year, TMB's board of directors decided on Feb=20
1 to raise new capital under the same scheme.=20

In a bid to ensure a warmer response from foreign=20
investors, the board changed its financial advisor from CS=20
First Boston to Salomon Smith Barney.  Under the plan, the=20
bank will apply for Bt15 billion tier-1 capital support=20
under the government's capital-raising scheme while the=20
balance would be raised by the bank itself.=20

Salomon Smith Barney was able to help Siam Commercial Bank=20
(SCB) successfully raise Bt65 billion in new capital last=20
year.  Contradictory to analysts' comments, one banking=20
source said that TMB's planned global offering may receive=20
a great deal of interest from offshore investors because=20
the bank had recently announced its operational=20
restructuring plans.=20

Adisak Kammool, an analyst of Phillipe Securities=20
(Thailand) Ltd, said that it was hard to predict in what=20
degree international investors would subscribe to TMB's new=20
share issue. He said that the main factors deciding whether=20
the bank would successfully raise new capital or not, were=20
this year's general election, and share pricing. (The=20
Nation  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*** End of Transmission ***=09=09=09