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

                           A S I A   P A C I F I C

              Monday, March 20, 2000, Vol. 3, No. 55

                                    Headlines


* A U S T R A L I A *

CONSOLIDATED FOODS AUSTRALIA: Widens annual loss
DAVNET: Posts first-half loss
GREYHOUND PIONEER AUSTRALIA: McCafferty's bidding for it
INFOSENTIALS: Posts six-month loss
PRIME TELEVISION: Cashes in to cut its Argentina losses
TELSTRA CORP.: To sell bonds to cut debt; lowered outlook


* C H I N A  &  H O N G  K O N G *

ANKOR GROUP: Shares sink on injection upset
WHEEL PROFIT COMPANY LTD: Facing winding up petition
WIN SUCCESSFUL SECURITIES LTD: Facing winding up petition
YAT CHEONG INDUS.DEVEL.LTD: Facing winding up petition
Z EXPERT CO.LTD: Facing winding up petition


* I N D O N E S I A *

BAKRIE FINANCE: Creditors afraid after court dismissal
TEXMACO GROUP: Economists support new credit facility
TIRTAMAS COMEXINDO: Creditors afraid after court dismissal


* J A P A N *

HOKKAIDO ELEC.POWER CO.: Making cuts for pension shortfall
JAPAN ENERGY CORP.: To post 70B Yen special loss for FY99
KATO SANGYO CO.: Puts retirement shortfall at 4.5B Yen
MUTSU-OGAWARA DEVEL.INC.: Seeks to revive troubled project
NIPPON IRIDIUM CORP.: Seeking liquidation
PENTA OCEAN CONSTR.CO.: To post 15.5B Yen net loss
TOSHIBA CORP: Projects smaller group net loss for FY99


* K O R E A *

DAEWOO MOTOR: GM tries to appease opposition
DONGBU INSURANCE: Non-life insurers post large losses
DRAM CHIPS: Chip prices drop substantially in March
HYUNDAI MARINE & FIRE: Non-life insurers post large losses
HYUNDAI SECURITIES: Chung brothers conflict worsens
LG INSURANCE: Non-life insurers post large losses
ORIENTAL FIRE: Non-life insurers post large losses
SAMSUNG FIRE & MARINE: Non-life insurers post large losses
SEOUL BANK: Fate to be determined soon


* M A L A Y S I A *

RENONG: UEM to raise RM3.75b through listing of Plus


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

METRO RAIL TRANSIT: Creditors okay completion, extension
NATIONAL STEEL CORP.: Creditors oppose payment suspension
ORIENT COMMER.BANKING CORP.: PDIC starts liquidating
PHILIPPINE NAT.BANK: To accept report of Pricewaterhouse


* S I N G A P O R E *

CLOB INT'L: Govt to help deceased investors' links
CLOB INT'L: EffectCap urged to collect half of fee first


* T H A I L A N D *

IRIDIUM SOUTHEAST ASIA: Closure to leave 200 Thais jobless
KRUNG THAI BANK: To get an AMC by mid-year
NATION MULTIMEDIA GROUP: Debenture offer to re-fi debt
TELECOMASIA CORP.: Rehab's share buy-back plan outlined
THAIOIL CO.: Can survive tight squeeze on profit margin
THAI PETROCHEM.INDUS.: Court ruling explained, hailed


=================
A U S T R A L I A
=================

CONSOLIDATED FOODS AUSTRALIA: Widens annual loss
------------------------------------------------
Losses at Consolidated Foods Australia increased to $12.2
million in 1999, as a consequence of a poor performance
from the macadamia nut business and a $7.2 million
extraordinary item.

However, Perth-based Consolidated said yesterday it had
taken steps to restore shareholder value.  According to the
chief executive officer, Mr Theng Dar Teng, Consolidated
has divested the loss-making Pacific Gold macadamia nut
business and will focus on businesses that generate higher
returns.

The group's net loss before abnormals was $5 million, six
times the preceding year's $776,000 loss. The extraordinary
item was the writedown of Pacific Gold's business assets,
which was sold to Queensland businessman, Mr Findlay
Andrews, in January for $5.6 million, excluding debtors and
inventory.  Revenue for 1999 was $56million, up 1.7 per
cent.

Excessive rainfall for the second year running resulting in
lower yields adversely affected the profitability of
Pacific Gold, which includes Macadamia Plantations of
Australia.  Pacific Gold EBIT (earnings before interest and
tax) was negative, at $2.59 million for 1999, with the loss
just over $1 million higher than the previous year.

The Lowan Whole Foods business slipped into the red in
1999, generating negative EBIT of $172,000, compared to a
previous profit of $2.38 million.  Consolidated said its
board sees the profitability of Lowan as the key to the
group's success, and will focus on improving process
efficiencies and yields in fiscal 2000.

EBIT was also significantly reduced at Olympic Fine Foods,
falling 97.6 per cent to $18,000.  Mundella Foods was the
only business unit to increase earnings, benefiting from
the launch of new yoghurt products and the strengthening of
the Mundella brand.  (The Age  17-March-2000)

DAVNET: Posts first-half loss
-----------------------------
Melbourne-based Davnet, which has an option to buy a 75%
stake in new World Telephone, lost A$8.4M in the first half
due to international expansion costs.  Davnet lost A$1.03M
in the previous corresponding half.  Sales rose to A$16.8M,
from A$115,000 a year ago.

GREYHOUND PIONEER AUSTRALIA: McCafferty's bidding for it
--------------------------------------------------------
The unlisted McCafferty's Holdings yesterday revealed plans
to launch a share-swap takeover offer for the troubled bus
operator Greyhound Pioneer Australia.

Directors of McCafferty's, which is part of a group that
also has bus interests, said they would offer one
McCafferty's share for every two shares held by Greyhound
shareholders, although they gave no indication of the value
of a McCafferty's share.  Yesterday, Greyhound shares were
unchanged at 25 cents.

The bid follows a time of management and financial turmoil
for Greyhound. Last October, it lost three managing
directors in a matter of days after financial difficulties.
The company previously had advised the ASX that it had
defaulted under its borrowing convenants with its principal
shareholder, Retirewise Capital, but said it was in talks
to rectify the default and reschedule debt.

McCafferty's said its takeover offer for Greyhound was
subject to approval by the Australian Competition and
Consumer Commission.

"Prior to the dispatch of a formal offer to shareholders,
it is planned that McCafferty's Holdings Ltd will finalise
an agreement with McCafferty's Management Pty Ltd to
effectively transfer the operations of the McCafferty's
coach business to McCafferty's Holdings Ltd," directors
said.  "It is envisaged if the takeover bid is successful,
the consolidated business will provide the opportunity to
rationalise the coach industry in Australia and allow it to
more effectively compete with the airlines, railways and
other transport operators."

McCafferty's said it intended to send the bidder statements
and offer documents to the Australian Securities and
Investments Commission, the Australian Stock Exchange and
Greyhound within 28 days, then forward the offer to
shareholders. (The Age  18-March-2000)

INFOSENTIALS: Posts six-month loss
----------------------------------
The online, video and audio information company
Infosentials yesterday reported a net loss of $2.6 million
for the December half-year, a further loss from the $2.1
million for the previous corresponding period.

The company said the loss was because of continuing
development of products and services, and growth of
marketing and infrastructure.  Infosentials revenue rose by
95 per cent in the half-year to $5.39 million.  The
directors did not declare a dividend.

The company said it expected even higher revenue growth
rates for the full year to June 2000, with continuing solid
increases from the established business streams, in
addition to the incremental impact of businesses acquired
recently and the launch of new products.  The directors
said the expenditures were necessary in the longer-term
interests of shareholders.

"Our rapid growth and revenue increases both in Australia
and overseas indicate the urgent need for content, which we
have accumulated from the beginning," said Mr Michael
Schildberger, Infosentials' managing director. "The so-
called dot-com companies around the world are now
discovering they need content, which is leading to
discussions with major players to form alliances, both here
and overseas.  We are most encouraged by the early
acceptance both here and in the US of our major new
releases, estream, Kwik-ERM, and exciting new computer-
based training products."

Infosentials also reported that a share placement, expected
to raise $20 million to help buy Information Australia,
should be completed within a few days. (The Age  17-March-
2000)

PRIME TELEVISION: Cashes in to cut its Argentina losses
-------------------------------------------------------
The regional TV broadcaster Prime Television has exited its
ill-fated foray into the Argentinian broadcasting industry
for $108 million, after agreeing to the sale of its 50per
cent stake in Azul Television.

No initial buyer has materialised. Prime has instead
mandated J.P.Morgan to arrange the sale of its interests.
That news sent Prime's shares 14 per cent higher to close
at $2.11 yesterday, a level not reached since April 1999.
It has a guaranteed sale price of $US66 million ($A107.6
million), and will be paid interest from 1 February next
year if it is not sold by then.

However, if the sale nets more than the agreed price,
J.P.Morgan will retain the surplus.  Prime's chairman, Mr
Paul Ramsay, said the price was "roughly comparable" with
that paid for its holding, but he admitted the deal
prevented Prime from recovering losses incurred since the
purchase.

"But given all the circumstances, it is the right decision
for shareholders," he said. "It enables the board to move
forward with its planning, with certainty as to the
financial outlook for the company."

Prime bought into Azul in late 1997 for $US63 million but
the company has since incurred losses of more than $A40
million.  However, one analyst, who did not wish to be
named, said he never expected Prime to be able to recoup
those losses.  Salomon Smith Barney's media analyst, Mr
George Colman, agreed the deal was a good outcome for
Prime.

"There is clearly no cash buyer at their price right now so
they have got an AAA-rated company to give them a
contractual sale on deferred terms, and that's fine because
it's a contract enforceable by law," he said.  "It's not
the same as cash in the hand now but it's a fine outcome."

As for Prime's future moves, Mr Colman noted it had yet to
replace its chief executive, Mr George Brown, and had not
made known its strategy.  "I think they have been working
to get this away and haven't thought much about what they
are going to do from here," he said.

However, an announcement on a new chief executive is
expected to be made soon.  Prime's finance director, Mr
Darryl Guihot, said Prime would remain involved with Azul's
management until the sale was finalised, but would not
contribute further funds.  (The Age  17-March-2000)

TELSTRA CORP.: To sell bonds to cut debt; lowered outlook
---------------------------------------------------------
Telstra Corp., Australia's No. 1 phone company, will sell
A$4 billion (US$2.5 billion) of bonds over the next two
years to pay existing debt and help finance new
acquisitions in Asian Internet and data communications
companies.

"We plan to do four A$1 billion bond issues in the next two
years," Telstra Treasurer Cliff Davis said in an interview.

The company will sell its first tranche of A$1 billion
worth of bonds next week. That issue, Telstra's first in
four years, will create a benchmark in Australia's
fledgling corporate bond market.

Meanwhile, Moody's Investors Service said today it lowered
its outlook for Telstra to negative from stable because it
expects the carrier to increase its debt to fund global
acquisitions.

Davis said investors know the company faces increased risks
as the global telecommunications landscape changes rapidly.
Still, the Moody's statement "won't slow us down in any
way."

Only an acquisition in the range of A$5 billion to A$10
billion would affect the company's debt rating, said Davis.
"Knowing the discipline of the board they wouldn't do
something that would down-grade our performance or
capability," he added.

Telstra is barred from issuing stock in the company to fund
acquisitions because the Australian government owns 51
percent of the carrier. The company held talks with Japan's
No. 1 phone company NTT Mobile Communications Network Inc.
about taking equity stakes in each other, the Sydney
Morning Herald reported this week. Telstra was forced to
abandon those talks because it would have diluted the
government's stake, the paper said.

Telstra, which has made overseas Internet and data
investments a top priority, said last year it could spend
A$5 billion (US$3 billion) over the next five years on
acquisitions.

"We want to do something in Asia," Telstra Finance Officer
Paul Rizzo said in an interview last week. "It's one of a
handful of key priorities" and we're looking at
opportunities. The company has said it's in talks to buy a
25 percent stake in Total Access Communications Pcl,
Thailand's No. 2 mobile phone provider, while it has also
looked at buying into Digi Swisscom Bhd, one of Malaysia's
five cell phone companies.

"Telstra would be required to employ substantial amounts of
debt should it decide to undertake acquisitions," said
Moody's, adding that an increase in its debt ratio won't
likely be matched by a rise in operating cash flow. Davis
said the Moody's action won't increase its cost of debt,
though he said the global rush to merge in the
telecommunications and Internet markets would increase
Telstra's risks. Investments

The company has already taken stakes in Australian
technology companies such as Sydney-based accountancy
software supplier Solution 6 Holdings Ltd., and No. 1 share
registry business Computershare Ltd., and Melbourne-based
Sausage Software Ltd. Still, Telstra is yet to announce an
Internet share sale, which many investors are demanding so
they can invest in the faster-growing Internet and data
divisions.

Telstra, which is barred from issuing stock options to its
employees, has lost a number of key executives to Internet
companies. That management drain, and Telstra's plan to
sack 22 percent of its 1000-strong management team, are
also problems for the company, Moody's said.

"The government ownership restricts the capacity of Telstra
to provide management incentives commensurate with those
available with new economy companies," the ratings agency
said. The job cuts will "temporarily disrupt operations,"
it added.

Telstra currently has A$9.4 billion of bonds issued
globally. Moody's also said it affirmed Telstra's senior
unsecured ratings at `Aa2' and its commercial paper rating
at Prime-1. Telstra's first A$1 billion bond issue is being
managed by Westpac Banking Corp. and Commonwealth Bank of
Australia Ltd. (Bloomberg  17-March-2000)


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

ANKOR GROUP: Shares sink on injection upset
-------------------------------------------
Ankor Group's share price plunged 40.1 per cent yesterday
in volatile trading on the news Renren Media Holdings'
takeover plan for the company did not include an asset
injection, according to brokers.

The counter closed at 70 cents from $1.17 on turnover of
124 million shares.  Ankor was hit by heavy selling after
investors learned from news reports Renren Media did not
plan to inject its portal arm into the vehicle dealer or
have a clear strategy on how to make the troubled company
profitable, brokers said.

Renren Media's sole asset is Renren.com, a Chinese-language
portal targeted at the mainland.  Investor sentiment for
the counter was also dampened by a continued region-wide
sell-off in technology stocks, they said.

"People are disappointed that Renren.com is not in," said
Jay Chang, an analyst at Credit Suisse First Boston.
"People do take a second look [at Internet stocks] and try
to understand their business strategies and re-evaluate
them."

Renren Media, which has agreed to take a 81.56 per cent
stake in Ankor, counts News Digital Ventures, the venture-
capital arm of media giant News Corp and United States-
based venture-capital company JH Whitney, among its
shareholders.  The Ankor takeover was conceived last month,
according to Anthony Robinson, chairman and chief executive
at Renren Holdings.

Jardine Fleming, Renren Media's financial adviser, said the
idea of taking over a Nasdaq-listed company was ruled out
because the Renren name would not have the same appeal in
the US as it would in Hong Kong.  On Wednesday, Renren
Media announced it was committed to increasing revenue at
Ankor, but besides laying out a plan to place Ankor's car-
dealership business on-line, it offered no solid blueprint
on how to end the company's woes.

Ankor, a dealer of SAAB vehicles, had five consecutive
years of losses up to December 1998. It had a loss of $27.7
million in the six months to June last year.  Renren Media
will subscribe to 5.87 billion new Ankor shares at 3.9
cents each, for $229 million, a hefty 91.6 per cent
discount to its closing price on March 7 before it was
suspended.

Based on Ankor's closing price yesterday, Renren Media's
stake was worth $3.88 billion more than its offer price.
(South China Morning Post  17-March-2000)

WHEEL PROFIT COMPANY LTD: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for April 12 on the petition of Fan
Lai Har,Bekey for the winding up of Wheel Profit Company
Limited. A notice of legal appearance must be filed on or
before April 11.

WIN SUCCESSFUL SECURITIES LTD: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 29 on the petition of
Securities and Futures Commission for the winding up of Win
Successful Securities Limited. A notice of legal appearance
must be filed on or before March 28.

YAT CHEONG INDUS.DEVEL.LTD: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for April 19 on the petition of Lam
Pak Mui for the winding up of Yat Cheong Industrial
Development Limited. A notice of legal appearance must be
filed on or before April 18.

Z EXPERT CO.LTD: Facing winding up petition
-------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for April 12 on the petition of Lau
Fung Yiu for the winding up of Z Expert Company Limited. A
notice of legal appearance must be filed on or before April
11.


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

BAKRIE FINANCE: Creditors afraid after court dismissal
TIRTAMAS COMEXINDO: Creditors afraid after court dismissal
----------------------------------------------------------
A bankruptcy court has thrown out two cases against debt-
ridden Indonesian companies this week, confirming concerns
among lenders to hundreds of struggling corporates that
reforms to boost creditor protection are stalling.

On Wednesday, the Jakarta Commercial Court rejected a case
against Bakrie Finance, a publicly traded finance unit of
the country's biggest non-Chinese conglomerate - the Bakrie
Group.  That followed a ruling in favour of a company
linked to former president Suharto being sued by a
government agency.

The bankruptcy law "looks fine - it's only the application
of that law where problems come", said John Dodsworth,
chief representative for the International Monetary Fund in
Indonesia, a key creditor to the country after contributing
to a US$43 billion bailout package in 1997 when the rupiah
slumped.

The rulings are making lenders fret that Indonesia's
efforts to restructure debt-ridden corporates in the wake
of the worst recession in decades and near collapse of the
country's financial system in 1998, may be slowing. The new
court was set up as part of Indonesia's pact with the IMF
in an attempt to reform its legal system. Since its
creation in August 1998, it has repeatedly disappointed
creditors.

That has eroded the government's drive to improve legal
accountability, which is key to luring foreign investors
back to the country and the court's decision highlights
creditors frustrations.  The petition was thrown out
because the creditors represented less than two-thirds of
the debt owed, said Tommy Bhail of Fuady, Tommy, Aji
Wijaya, the law firm that is representing Bakrie Finance.

According to the law, as long as a company has two or more
creditors and has not paid a collectible debt due, the
debtor shall be declared bankrupt, regardless of how much
debt is represented.

"The decision is lacking ground. It is one-sided," said
Joni Aries Bangun of Hanafiah Ponggawa, legal
representative for the four Korean creditors who brought
the suit.  "The judge only considered Bakrie's arguments."

The four creditors are owed $11 million by Bakrie as part
of a $21 million syndicated loan that came due in May.
They are AB Capital markets (HK), a unit of Asian Banking,
Cho Hung Leasing and Finance (HK), Hanmi Leasing and
Finance (HK), and KEB Leasing and Finance, all South Korean
firms.

On Monday, the court granted Tirtamas Comexindo, a trading
company owned by Hashim Djojohadikusumo, a Suharton
relative, a six-month payment freeze on its 1.6 trillion
rupiah in debt.  The case was brought by the government-run
Indonesian Bank Restructuring Agency (Ibra) which is trying
to restructure bad debts as it seeks to recoup billions of
dollars the government spent fixing the country's banking
system after the collapse of the rupiah.

Presiding Judge Mahi Soroinda Nasution said Tirtamas "has
shown a good will to complete debt restructuring." The move
was a blow to the agency's highest profile bankruptcy case
to date and its drive to restructure the bad loans under
its control.

"We regret the ruling, and we call on Tirtamas to adhere to
its commitment to restructure its debt," said Widodo
Mudjiono, Ibra's lawyer.

Still, Mr Dodsworth is hopeful of change.  He said if the
attorney general can bring a bankruptcy case to court and
win, that will "effectively make the court free" from
interference.   "You don't need many cases to go in your
favour." (South China Morning Post  17-March-2000)

TEXMACO GROUP: Economists support new credit facility
-----------------------------------------------------
Economists supported on Friday the Rp 720 billion (US$96
million) credit facility extended by state Bank Negara
Indonesia (BNI) to giant textile producer Texmaco Group
despite the latter's huge nonperforming loans.

Economist Sri Mulyani of the University of Indonesia and
Sri Adiningsih of Gadjah Mada University supported the
fresh facility, saying it would revitalize Texmaco's
textile business which employs a huge workforce.

"I don't see a problem here since the government partly
owns Texmaco," Mulyani said on the sidelines of a seminar
on the economy organized by the Indonesian Democratic Party
of Struggle (PDI Perjuangan).

The Indonesian Bank Restructuring Agency (IBRA) took over
last Monday BNI's nonperforming loans, including some Rp
9.6 trillion owed by the Texmaco Group, as part of BNI's
recapitalization program.  According to Kontan weekly, on
the following day BNI provided Texmaco with a Rp 720
billion L/C facility, which IBRA guaranteed.

The weekly said IBRA agreed to guarantee Texmaco's new L/C
facility as the company had no working capital left to run
its business.  The six-month credit facility will be used
to import raw material for Texmaco's production, which is
vital to restructuring its debts, the weekly quoted IBRA's
deputy chairman for assets management credit Eko Budianto
as saying.

While voicing support for the L/C facility, Mulyani called
on IBRA to place its people at Texmaco to control the use
of the facility.  Adiningsih said the government could not
ignore the importance of Texmaco given the large number of
its workers.  But, she said, the government should keep in
mind that Texmaco is a big debtor and the L/C provision
should be transparent.

She said BNI should have waited until Texmaco's debt
restructuring program was completed before it was provided
with fresh credit.   "In the end this may burden BNI's
recapitalization program," she said.

Legislator Sukowaluyo Mintorahardjo approved of the new L/C
facility provided it was aimed at sustaining Texmaco's
business.  "This is a new Texmaco here, in which the
government has a stake," Suko said.

Sukowaluyo, who is also head of House of Representatives
Commission IX for financial affairs, said the House would
not question Texmaco over the new facility unless the
company used it to repay its debts to creditors.

Late last year, Texmaco was widely criticized for obtaining
$754 million plus Rp 1.9 trillion mostly in preshipment
export facilities between November 1997 and February 1998
from Bank Indonesia (the central bank) through BNI at a
time when the rupiah was under enormous pressure.

Critics said Texmaco had used its ties to Soeharto to twist
central bank rulings and gain access to preshipment trade
facilities from Bank Indonesia. (The Jakarta Post  18-
March-2000)


=========
J A P A N
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HOKKAIDO ELEC.POWER CO.: Making cuts for pension shortfall
----------------------------------------------------------
To lower its unfunded pension liability, Hokkaido Electric
Power Co. (9509) will reduce the benefit payout ratio for
retired workers on their accumulated tax-qualified pensions
from 5.5% to 4% for employees who leave from April onward.

The utility will also cut its one-time severance payments
by 10%, transferring this amount to pension reserves to
maintain annual pension payments at their current levels.
With interest rates remaining low, investment returns have
declined. Hokkaido Electric reduced its assumed rate of
return twice last year, and it now stands at 3%.

The company has estimated an unfunded pension liability
stood at about 40 billion yen. (Nikkei  17-March-2000)

JAPAN ENERGY CORP.: To post 70B Yen special loss for FY99
---------------------------------------------------------
Japan Energy Corp. (5014) will post a 70 billion yen
extraordinary loss for the year ending this month to cover
pension fund liabilities as well as lump-sum disposal of
unrealized losses on stockholdings in unprofitable
subsidiaries and other restructuring costs, company sources
said.

The leading oil refiner expects a 40 billion yen net loss,
compared with a 19.8 billion yen loss the year before.
The company will cancel its annual dividend for the first
time since listing in 1949. In fiscal 1998, it offered a 3
yen payout.  To prevent further financial deterioration,
the firm will reevaluate its land holdings at market value
and transfer 60% of an 80 billion yen evaluation profit, or
about 50 billion yen, to stockholders' equity.

The extraordinary loss will comprise 30 billion yen to
partly cover a 44 billion yen shortfall in retirement fund
reserves and a total of 40 billion yen on stock evaluation
as well as loan losses at subsidiaries and costs for
scrapping facilities at an oil-product retailer.

Japan Energy plans to integrate its refining and
distribution operations with those of Showa Shell Sekiyu KK
(5002) in new firms. Of the combined eight refineries, a
core four to six plants will be operated by a new jointly
owned company. (Nikkei  17-March-2000)

KATO SANGYO CO.: Puts retirement shortfall at 4.5B Yen
------------------------------------------------------
Kato Sangyo Co. (9869), a leading food wholesaler, has
calculated that its unfunded retirement liabilities stood
at 4.57 billion yen as of Sept. 30, 1999.

Kato Sangyo is considering injecting roughly 2 billion yen
into its pension program with a contribution of portfolio
shares through a trust vehicle. The company would write off
the remaining shortfall by the end of the year ending
September 2003.

Kato Sangyo based its calculation on a discount rate of
3.5%. It had pension and severance liabilities of roughly
8.99 billion yen, but only about 3.76 billion yen in
pension plan assets and some 660 million yen in severance
allowances. (Nikkei  17-March-2000)

MUTSU-OGAWARA DEVEL.INC.: Seeks to revive troubled project
----------------------------------------------------------
Michinoku Bank (8350) has decided that it will seek a new
development scheme for the financially ailing Mutsu-Ogawara
industrial park project, setting its sights on the
development of a major center for the nation's energy and
environmental protection industries.

The regional bank, based in the city of Aomori, will draw
up a development plan and submit it to the central and
local governments by May.

Mutsu-Ogawara Development Inc., which is responsible for
overseeing the industrial development project in northern
Japan, is saddled with debts worth over 241 billion yen.
Michinoku and Aomori Bank (8342), another regional bank in
Aomori, have each provided loans of more than 5 billion
yen.

Michinoku Bank has asked a wholly owned subsidiary of
Mitsui & Co. (8031) to conduct a feasibility study. The
firm will look into, among others, the possibility of
building a way station for pipelines bringing in liquefied
natural gas found off the coast of Sakhalin Island. It will
also study whether it is feasible to launch a model
business exploiting new technology that purifies
environmental pollutants with a material in the state of
criticality. (Nikkei  17-March-2000)

NIPPON IRIDIUM CORP.: Seeking liquidation
-----------------------------------------
A Japanese affiliate of troubled U.S. satellite phone
venture Iridium LLC sought government approval yesterday to
liquidate its operations.

Japan's telecommunications ministry is expected to approve
the request as soon as tomorrow, said a spokesman for DDI
Corp., which holds a 50.5% stake in Nippon Iridium Corp.
Nippon Iridium is set to halt its satellite phone services
that same day. The U.S. operator of the Iridium service
filed for bankruptcy protection in August.  (National Post
17-March-2000)

PENTA OCEAN CONSTR.CO.: To post 15.5B Yen net loss
--------------------------------------------------
Penta-Ocean Construction Co. (1893) will post a net loss of
15.5 billion yen for the year ending this month after
booking 34.5 billion yen in extraordinary losses, including
appraisal losses on real estate acquired for resale, the
company said Thursday.

With mandatory reporting of appraisal losses to begin from
next fiscal year, the civil engineering and construction
firm will dispose of the losses early.  The company will
pay an annual dividend of 2.5 yen per share, down from the
5 yen projected earlier. No dividend was paid the previous
year, when the firm also posted a large net loss.

Of the 34.5 billion yen in extraordinary charges, real-
estate valuation losses account for 18.4 billion yen. The
charges also include 4.6 billion yen in additional reserves
to help cover a 43 billion yen shortfall in retirement
allowances and pension funding. (Nikkei  17-March-2000)

TOSHIBA CORP: Projects smaller group net loss for FY99
------------------------------------------------------
Toshiba Corp. (6502) will likely see a consolidated net
loss of 30 billion yen in the year ending March 31,
remaining in the red after posting a 13.9 billion yen net
loss the previous year, the company announced Thursday.

The loss is smaller than its earlier projection of 50
billion yen thanks to brisk sales of semiconductors and
other electronic products.  Toshiba plans to pay a 3 yen
dividend per share, half the level of a year earlier.
Group sales are projected to rise 8% to 5.7 trillion yen.

Consolidated operating profit is expected to more than
triple to 100 billion yen, 20 billion yen above the initial
estimate, on an improvement in the operating balance at the
firm's semiconductor and other electronic devices
divisions.

Though the semiconductor division posted a 60 billion yen
operating loss in the first half, it will likely move into
the black to the tune of 35 billion yen. A further factor
is the stronger-than-expected performance at Toshiba's
heavy machinery division.  Group pretax loss will likely
total 45 billion yen, 25 billion yen lower than the earlier
projection.

On a parent-only basis, Toshiba revised downward its
projected net loss to 250 billion yen due to a 330 billion
yen extraordinary loss to cover retirement and pension
underfunding.  Toshiba will book a total extraordinary loss
of 488 billion yen, including 107 billion yen in court
settlement costs for a personal computer suit in the U.S.
and 37 billion yen in restructuring expenses.

The company will chalk up a 53 billion yen extraordinary
profit from the sale of stockholdings. (Nikkei  17-March-
2000)


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

DAEWOO MOTOR: GM tries to appease opposition
--------------------------------------------
General Motors of the United States is mounting an effort
to smooth public sentiment set against its bid to solely
take over Daewoo Motor.

A senior GM official was quoted as saying that GM has left
the door open for a potential alliance with a Korean
company in a joint bid for the second largest Korean car
maker.  This is the first time that the world's largest car
maker has broached the idea of an alliance in connection
with its bid for Daewoo Motor. GM officials were not
available for comment.

GM, which ended its more than 10-year alliance with Daewoo
in 1992, had promoted its sole takeover of Daewoo. Many
industry watchers see GM as the favorite in a field of five
bidders including Ford, DaimlerChrysler, Fiat SpA and
Hyundai Motor.

Allen Perriton, a pointman for GM's strategic alliance and
former head of its Korean branch, said during an interview
with Yonhap News Agency that its Korean partner should meet
certain qualifications in terms of manpower, funding and
technology that could benefit GM.

He excluded both Hyundai and Samsung Motors as potential
partners, pointing out that an alliance with Hyundai could
cause a controversy over a monopoly in the Korean
automotive industry and Samsung is under negotiation for
sale.

Industry experts view the latest GM move is aimed to
appease public opinion set against it, and does not
necessarily reflect its real intention.

"Perriton's remarks come as a bidding process is getting to
an earnest process," one observer said. "I see this is
intended to smooth the unkind public opinion for its sole
takeover."

Late last year, when GM's sole bid for Daewoo failed to
come to fruition after two years of exclusive negotiations,
Ford threw its hat into the ring and challenged GM for
Daewoo.  In hindsight, Ford used the "card of partnership"
with a Korean company to overcome its late start made
behind GM. Ford appears not to be sticking to its card with
reports saying that Ford is not ruling out a sole bid.

Hyundai, the Korean firm that was the subject of reports as
a potential partner with Ford, has not been approached by
Ford nor has it reached out to the world's second largest
automaker, Hyundai officials said.  Hyundai, however,
believes that any serious bidders would ultimately approach
it for partnership considering public opinion is set
against any unilateral foreign purchase of Daewoo.

Choi Han-yong, Hyundai's senior vice president, said the
unfriendly public opinion would be too big a burden for any
foreign car makers, if they want to have Daewoo to
themselves.

"Our position, however, has not wavered," he said.
"Management control of Daewoo should not be handed over to
a foreign car maker."

The problem is whether any foreign car maker would settle
for a stake in Daewoo that falls short of a majority.
(The Korea Times  15-March-2000)

DONGBU INSURANCE: Non-life insurers post large losses
HYUNDAI MARINE & FIRE: Non-life insurers post large losses
LG INSURANCE: Non-life insurers post large losses
ORIENTAL FIRE: Non-life insurers post large losses
SAMSUNG FIRE & MARINE: Non-life insurers post large losses
----------------------------------------------------------
The nation's 11 non-life insurers paid out 296.6 billion
won ($265 million) in indemnities against insurance claims
between April and December last year, and the situation has
not improved from January to March of this year.

Industry sources said yesterday that the 11, including
Samsung Fire and Marine, Hyundai Marine and Fire, Dongbu
Insurance, LG Insurance and Oriental Fire, all sustained
losses due to damage claims related mostly to auto
accidents.

Losses sustained by the non-life insurers reached 164.8
billion won as of Nov. 30 of last year, but the amount
increased by 130 billion won between January and March of
this year.

The non-life insurers collected 3.97 trillion won in car
insurance premiums as of Nov. 30 and paid out indemnities
of 2.86 trillion won, in addition to 1.44 trillion in
expenses.  (The Korea Herald  17-March-2000)

DRAM CHIPS: Chip prices drop substantially in March
---------------------------------------------------
The export prices of DRAM chips dropped substantially this
month, with 64M DRAM chips exported under long-term
contracts falling $1.30 from the end of February to $5.75,
the Commerce, Industry and Energy Ministry said yesterday.

The chips were supplied to clients at prices ranging from
$6.30 to $7.80 for an average of $7.05. The price fell to
$5.90 in the first week of this month and to $5.75 during
the second.  The prices ranged as high as $10-$12 at the
end of last year, but plunged to half that recently.

The continued drop in the international spot prices of the
chips have forced U.S. computer makers to demand fewer
chips under a long-term contract basis.  A ministry
official said the nation will have no trouble meeting the
export target with chip prices staying around $5.50 to
$6.50 during the rest of this year. (The Korea Herald  17-
March-2000)

HYUNDAI SECURITIES: Chung brothers conflict worsens
---------------------------------------------------
Two sons of Hyundai Group founder Chung Ju-yung are engaged
in a war to control the financial sector of the
conglomerate in a bid to gain the upper hand to control the
group in the future.

Chung Mong-koo and Mong-hun have long been at war and their
recent battle over Hyundai Securities is seen as a
precursor to their future competition in the post-Chung Ju-
yung era.

The conglomerate announced Wednesday that it named Lee Ik-
chi, chairman of Hyundai Securities, to head Korea
Industrial Development and Roh Chung-ik, vice president of
Hyundai Capital, to replace Lee at Hyundai Securities.
Hyundai Securities believes Lee is Mong-hun's man while the
incoming Roh is on Mong-koo's side.

Elder brother Mong-koo reportedly orchestrated the
personnel changes in order to control Hyundai Securities,
the locomotive among the group's six financial companies.
Upon hearing the news over the phone, Mong-hun, now on a
business trip to the United States, was reportedly furious
and ordered that the personnel changes be cancelled.
Hyundai Securities also opposed the reshuffle, saying it
cannot accept a group order which was made without
consulting Mong-hun, the company's largest shareholder.

"The personnel changes were not officially decided since
Chairman Chung Mong-hun has not approved it," a Hyundai
Securities official said.

Amid rumors of a power struggle between the two brothers,
Lee left Korea for an unidentified destination yesterday
morning.

"Lee went abroad in accordance with his business schedule,"
another Hyundai Securities official said. "He is expected
to return early next week," he added, refusing to disclose
his destinations or the purposes of the trip.

Industry watchers said the incident is not the first time
for the two brothers to butt heads over Hyundai Securities.
Late last year, Mong-koo reportedly tried to get his
confidante to lead Hyundai Securities but failed due to
opposition from Mong-hun.  The two brothers are fighting
over the brokerage house in the belief that whoever
controls the group's financial sector will gain the upper
hand as an heir to their 85-year-old father.

In addition, Hyundai financial companies will help
facilitate the flow of capital and can influence the entire
group. ll secede from the parent group, business analysts
say.  The internal conflict in the group is expected to
grow fiercer unless group founder Chung takes action to
quell the competition between his two sons.

But Chung Ju-yung is remaining neutral and siding with
neither of them, thus a possible division of Hyundai's
financial companies cannot be ruled out, analysts say.
(The Korea Herald  17-March-2000)

SEOUL BANK: Fate to be determined soon
--------------------------------------
The government is moving to determine the fate of the
ailing Seoul Bank before the initial deadline of the end of
June.

The government is considering various options to normalize
the bank's operations, including sale to a foreign bank,
merger with a domestic bank or putting it under management
by a foreign bank, according to a senior government
official yesterday. It will also continue its efforts to
find a foreign chief executive officer for the bank.

"The government has decided to set the direction for the
bank's future before any further deterioration of its
management," the official said.

The government may accept the best offer from foreign
financial institutions to buy or manage the bank, he said,
adding that domestic banks may also take it over through an
M&A.  However, the government has no plans to sell Seoul
Bank via purchase and assumption (P&A) by another bank.

In February last year, the government signed a memorandum
of understanding with HSBC Holdings PLC. on the sale of
Seoul Bank but negotiations collapsed in August due to
differences over takeover conditions.  The government then
decided to put the bank's management in the hands of a
foreign financial institution but withdrew the plan in
January this year because no foreign institution
volunteered to manage it.

Instead, the government asked Morgan Stanley to find a
foreign chief executive officer for the bank, but that move
has also reached impasse due to a lack of suitable
candidates.  Another government official said Germany's
Deutche Bank and various U.S. funds have recently expressed
an interest in managing the troubled bank.

"These foreign financial institutions appear to be
considering taking over the bank after first participating
in the bank's management," he said.

A top financial source also noted that more than two
foreign financial institutions offered to buy Seoul Bank
under similar terms to those on the sale of Korea First
Bank to Newbridge Capital Ltd.  In addition, domestic
banks, such as KorAm Bank and H&CB (formerly Housing and
Commercial Bank), are showing interest in Seoul Bank,
according to banking sources.

KorAm Bank may try to take over the bank this month if it
succeeds in attracting capital from abroad, while H&CB
recently made an offer to the government to acquire the
bank's still viable retail banking division.  The
government has so far injected more than 7 trillion won in
taxpayers' money into Seoul Bank for recapitalization.
(The Korea Herald  18-March-2000)


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

RENONG: UEM to raise RM3.75b through listing of Plus
----------------------------------------------------
United Engineers Malaysia will undergo the complicated task
of listing its highway operator Plus to raise at least 3.75
billion Malaysian ringgit (S$1.7 billion) instead of
forcing Halim Saad to buy its Renong shares.

At the same time, parent Renong will sell its 12.25 per
cent stake in Commerce Asset Holding Bhd, an easier
exercise that could generate an exceptional gain of RM1
billion and increase its net tangible asset by 42 sen.

The proposed divestment is part of the group's plan to
raise funds to repay the RM8.4 billion owed to Plus, a
wholly-owned subsidiary of UEM.

"Clearly it makes no sense for UEM to allow the Plus bonds
to run to full maturity in 2006 if we can afford to reduce
debt by repaying them earlier," UEM managing director Ramli
Mohamad said, "particularly as UEM and Renong will jointly
owe a total of RM16 billion if we allow interest
accumulation to run over the full seven-year term. It also
locks up UEM's assets for seven years and inhibits our
potential for future growth."

Plus -- the owner of the tolled highway along Malaysia --
had issued the bonds last year to shave Renong's short-term
debts of RM5.4 billion and UEM's obligations of RM3
billion. The early redemption of the zero-coupon bonds with
a high yield of 9.4 per cent will boost their earnings due
to the substantial interest savings.

The groups have appointed Merrill Lynch (Singapore) to
advise them.  Dr Ramli said UEM has received the mandate to
divest up to 30 per cent of Plus. He said the sale of a 25
per cent stake in Plus could raise RM3.75 billion based on
its estimated value of RM15 billion.

But it won't be easy. First, the listing of Plus would
breach Malaysia's chain-listing rule as the subsidiary
contributes over 70 per cent to UEM's bottom line -- higher
than the cap of 50 per cent allowed. "We believe there's a
way and it can be done," said Dr Ramli.

Second, Plus needs the nod of its creditors before it can
go public.  But UEM did not feel the need to ask Renong
chieftain Halim Saad to fulfil his promise to buy the
Renong shares from UEM if Renong remained below RM3.24
between February this year and next February. Renong closed
at RM2.94 yesterday.

Dr Ramli expressed confidence that Renong's share price
would surpass UEM's cost of holding the shares. "The upward
movement is quite real. Why should we sell at RM3.24 when
we can sell it higher?" he said. (Singapore Business Times
17-March-2000)


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

METRO RAIL TRANSIT: Creditors okay completion, extension
--------------------------------------------------------
Lenders led by the Bank of Tokyo and Mitsubishi Corp. of
Japan have committed to bankroll the completion of the Edsa
Metro Rail Transit and its extension from North Avenue in
Quezon City to Caloocan.

Metro Rail Transit Corp. chair Robert John L. Sobrepe¤a
told the Inquirer that the lenders made the commitment in a
meeting with government officials after getting the
assurance that the government would comply with its
financial obligations.

The transportation department is scheduled to pay its first
semi-annual amortization of $39 million to the MRTC, a
private consortium composed of seven companies led by the
Fil-Estate group, in July which would be used by the
consortium to pay its maturing debt.

"The government officials clearly stated in the meeting
with the lenders last week that they were fully behind the
sovereign guarantee," Sobrepe¤a said.

Sobrepe¤a said the lenders would put up an additional $21
million to put up the next three stations--Ayala Avenue,
Magallanes and Taft--which will complete the Edsa line.
The MRT extension from North Edsa to Caloocan is expected
to cost between $150 million and $200 million.

The Japan Export-Import Bank and the Bank of Tokyo-
Mitsubishi are MRT project's biggest creditors with a
combined loan exposure of $290 million, followed by the
Postal Bank of the Czech Republic and Czech Export Credit
Agency with exposure of $88 million.

Philippine-based institutions involved in the project were
led by Citibank N.A., Bank of the Philippine Islands, Far
East Bank and Trust Co., ING Bank, Metropolitan Bank and
Trust Co., Bank of Nova Scotia and the Bank of Tokyo-
Mitsubishi Philippines.  These banks lent a combined $87
million for the project.

MRTC consortium members include Fil-Estate Management Inc.,
Ayala Land Inc., Anglo-Philippine Holdings Corp., Ramcar
Inc., Greenfield Development Corp., Allante Realty and
Development Inc. and DBH Inc.  Sobrepe¤a said the same
consortium members have expressed support to invest in the
extension. (Philippine Daily Inquirer  17-March-2000)

NATIONAL STEEL CORP.: Creditors oppose payment suspension
---------------------------------------------------------
The creditors of National Steel Corporation (NSC) are
asking the Securities and Exchange Commission (SEC) to deny
the state-controlled firm's request for an extension of its
state of suspension of payments while it makes a revised
rehabilitation plan.

In an opposition filed yesterday, counsel for Philippine
National Bank, Allied Bank, Land Bank and United Overseas
Bank Augusto Macam said NSC is just stalling for more time
when it just can't find a viable way to rehabilitate the
company.

NSC had asked the SEC to extend its state of suspension
while it revises its rehabilitation plan to take into
consideration the possible entry of a new investor who will
act as the white knight and infuse the capital needed to
turn the company around.

Macam said that, as early as last year in its early stage
of default, NSC had given false hopes of a white knight
willing to rescue the distressed company and infuse its
much needed capital.

"Tales of a white knight, however, have never ever come
close to realization," said Macam adding that once again,
it wants the SEC to believe that negotiations are on its
final stages.

However, Macam pointed out that NSC has not given proof to
substantiate this claim. "Not even a name of the said
investor was mentioned to give creditors and the SEC some
concrete idea to pin their hopes on if indeed the
negotiations are already in the 'advanced stages'," he
said.

Macam said the only logical conclusion that can be deduced
from NSC's request for another 20 days to formulate a
revised rehabilitation plan is because NSC is unable to
formulate a viable and workable rehabilitation plan.
He said the request for an extension is merely a dilatory
tactic to stall the SEC and the creditors to pursue the
proper claims in the hope that, during the interim, a white
knight will indeed come.

In the meantime, Macam said thousands of people in Iligan
remain displaced without any source of income while NSC has
not even heeded an SEC order for it to formulate a
reasonable scheme for the proper maintenance and
preservation of the assets which are now left exposed to
the elements and are fast deteriorating and becoming
obsolete.

Major creditors of National Steel Corp asked corporate
regulators to end the debt reprieve it gave the steel maker
and order the immediate liquidation of the company,
according to a petiton jointly filed by Philippine National
Bank, Land Bank of the Philippines and United Overseas
Bank.

"The respondents respectfully pray that (National Steel's)
petition for suspension of payment be dismissed and that
the SEC issue an order for the liquidation of National
Steel," it said.

National Steel's debts have piled up to about 16 bln pesos,
of which more than 9 bln pesos are bank loans.  (AFX News
Limited  17-March-2000, Manila Bulletin  18-March-2000)

ORIENT COMMER.BANKING CORP.: PDIC starts liquidating
----------------------------------------------------
Two years after its closure, Orient Commercial Banking
Corp. is now under liquidation, finally facilitating the
processing and partial payout of funds to depositors.

"We have now entered the liquidation stage and that means
some depositors can now get a portion of their funds,"
outgoing Philippine Deposit Insurance Corp. (PDIC)
president Ernest Leung yesterday said.

Since the PDIC board has already placed the bank under
receivership, it is no longer important for all of Orient
Bank's depositors to agree on the plan, he said. Mr. Leung
also said the situation of Orient Bank is different from
that of recently closed Prime Savings Bank where the
rehabilitation plan is being derailed by depositors'
opposition to the plan.

"In the case of Orient Bank, many depositors have already
assigned their claims to Allied Banking Corp.," he said.

Last year, Allied Bank bought the right to operate Orient
Bank's 52 branches as well as deposit liabilities for 1.8
billion Philippine pesos (US$44 million at PhP40.954:US$1).
Mr. Leung said the deposit restructuring plan for Orient
Bank will involve a five-year payout that will allow
depositors to withdraw 20% of their funds annually.
(Business World  17-March-2000)

PHILIPPINE NAT.BANK: To accept report of Pricewaterhouse
--------------------------------------------------------
The Philippine National Bank (PNB) is ready to accept "with
reservations" the audit findings of Pricewaterhouse
Coopers, paving the way for the privatization of the bank
in the next couple of months.

This was announced yesterday by PNB president Feliciano
Miranda who said that taipan Lucio Tan has assured the
government that he is willing to sign an investor's
agreement that would bind Tan to selling his 46-percent
shares in PNB as a block with the government's 30-percent
share.

Miranda said that while PNB is ready to accept the
Pricewaterhouse Coopers audit, PNB is taking some
"exceptions" to the audit findings.  The reason for PNB's
reservations and exceptions, Miranda explained, is due to
the accounting method used in the Pricewaterhouse Copper
audit report.

Pricewaterhouse Coopers' audit uses the International
Accounting Standard (IAS) which is more stringent than the
Philippine Generally-accepted Accounting Procedure
(PhilGAP).  Sources said PNB is taking exceptions with
regard to the level of non-performing loans (NPL) which,
based on PhilGAP standards is only 29 percent. But using
the IAS, PNB's bad debt ratio soared to as high as 40
percent.

Under the IAS measurement, loans classified as substandard
are already classified as non-performing. Under PhilGAP, a
loan is classified non-performing after it has been past
due for three months.  While PNB is now willing to accept
with reservation the Pricewaterhouse audit, another audit
will still be conducted for the period 1999 up to the first
quarter of this year.

Finance Secretary Jose T. Pardo said that SGV has been
asked to do another audit even though PNB's present auditor
is Punongbayan and Araullo.  Miranda, together with Tan and
PNB director Enrique Filamor, met with Pardo yesterday to
discuss the investors' agreement.

Tan is willing to sell his shares together with that of the
government as a block provided that the minimum selling
price is set at P160 per share. (The Philippine Star  18-
March-2000)


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

CLOB INT'L: Govt to help deceased investors' links
--------------------------------------------------
The Singapore government will help bankrupts and
beneficiaries of deceased investors who accept Effective
Capital Sdn Bhd's proposal to unlock frozen Malaysian
shares previously traded on the republic's Central Limit
Order Book (Clob) over-the-counter market.

The Straits Times reported yesterday the Official Assignee
and Public Trustee would fork out in advance the 1.5%
transfer fee levied by Effective Capital. This is the first
time the government is offering financial assistance in the
matter and at least 200 investors are expected to benefit.

The Securities Investors Association of Singapore (Sias)
had on Wednesday called on Effective Capital to collect 50%
of the transfer fee first and the balance after the full
release of the shares. Effective Capital's proposal to
migrate and stagger the release of the Clob shares over a
16-month period is one of two schemes supported by the KLSE
and Singapore Exchange Ltd.

Trading in shares on Clob was stopped when Malaysia imposed
selective capital controls in September 1998. (The Star
17-March-2000)

CLOB INT'L: EffectCap urged to collect half of fee first
--------------------------------------------------------
The Securities Investors Association of Singapore has
called on Effective Capital Sdn Bhd to collect 50 per cent
transfer fee first from investors who opt to accept the
company's proposal for the staggered release of their Clob
shares.

Sias president David Gerald said Effective Capital can
assist investors by collecting half of the transfer fee
upon migration of the shares and the balance after its full
release had taken place.
He said many investors were afraid that the staggered
release would not happen.

"If Effective Capital itself believes that there will not
be any difficulties with MCD (Malaysian Central Depository
Sdn Bhd) carrying out its statutory duty, then it should
demonstrate its good faith with a positive response.

"We do not think by obliging Clob investors who have made
this call to Sias, Effective Capital will be affected
adversely as it will still take about RM150 to RM200
million after three and half months and the balance at the
end of the 16 months," Gerald said in a statement
yesterday.

Currently, investors accepting Effective Capital's proposal
have to submit ahead bank drafts for the 1.5 per cent
transfer levy set by the company which had proposed the
migration and staggered release of the shares over 16
months.

Effective Capital chief executive officer Datuk Mohamed
Moiz had said the fees paid would be kept by Standard
Chartered Bank of Singapore and released to the company
after the Clob securities were transferred to individual
accounts of investors.

The migration and staggered release of the securities would
be effected by MCD.  So far, some 50,000 investors holding
Malaysian shares formerly traded over Singapore's Central
Order Limit Book (CLOB) exchange had accepted its proposal
which would lead to the unlocking of the shares for trading
in the Kuala Lumpur Stock Exchange.

The proposal by the Malaysian-based company linked to
Singaporean businessman Akhbar Khan is dubbed Scheme A -
one of two solutions agreed by the KLSE and the Singapore
Exchange to resolve the issue of the frozen Malaysian
securities held by 172,000 investors, mainly Singaporeans.

Trading of the over-the-counter shares were stopped when
Malaysia imposed selective capital controls in September
1998. (E-Media  17-March-2000)


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

IRIDIUM SOUTHEAST ASIA: Closure to leave 200 Thais jobless
----------------------------------------------------------
Two hundred Thais will be without jobs and 300 satellite-
mobile-phone subscribers put off the hook when Iridium
Southeast Asia (ISEA) officially pulls down the shutters at
the end of this month.

Yesterday, ISEA officially announced the closure by the end
of the month and the gradual lay-off of 200 employees
during this period.  Vice Admiral Veera Jongchareon, acting
president of ISEA, said that the closure was a result of
parent company US Iridium LCC running into bankruptcy
proceedings.  The bankruptcy court's final decision may not
occur until shortly before the scheduled shutdown of
Iridium LCC today.

ISEA had invested a total of Bt3 billion in Iridium LCC, a
high-risk, global mobile phone project, including the
gateway investment in Thailand.  Kyocera Corp and DDI, the
Japanese handset makers and a telecom company respectively,
hold 49 per cent in ISEA. Thai Satellite Service Co (TSC)
holds the balance.  United Communication Industry Plc, a
major shareholder in TSC, holds a 40-per-cent stake.

"We have already laid off 140 employees. The rest will go
at the end of this month. We have paid them compensation in
accordance with the labour law. We have also closed down
two earth stations in Nakorn Ratchisma," Veera said.

He added that the company will hold a meeting next week to
discuss the possibilities for its 300 customers.
"According to our tentative plan, we will return their
deposit payments to show our responsibility," Veera added.

ISEA's major customers include the marine and airline
industries, oil rigging firms and multinational companies
located in remote areas. Among the customers are Thai state
agencies such as THAI Airways International Plc and the
Aviation Department.  The closure of ISEA's service is
bound to affect the state agencies that have subscribed to
the service.

In another related development yesterday, Kyocera said that
it would withdraw from Iridium. It will stop financing
Nippon Iridium Corp, the operator of the satellite
communications system in Japan.  Kyocera will also end
production of mobile phones for Nippon Iridium, a source
said.

The decision to pull the plug on the project followed
Nippon Iridium's application to the Posts and
Telecommunications Ministry for approval to end its service
on the grounds that its US parent, Iridium LLC, filed for
bankruptcy last August and was unlikely to rehabilitate
itself.  Kyocera joined the Iridium project in 1993. The
success of the project was often questioned due to the
widespread use of ordinary mobile phones.

Iridium and its investors were reviewing several bids to
see whether to submit them to a New York bankruptcy court
yesterday, a source familiar with the proceedings said,
speaking on condition of anonymity.  Several bidders,
including a California telephone entrepreneur, have
submitted offers for Iridium LLC in a last-ditch effort by
the satellite-based mobile phone company to save itself.

One such bidder to come forth was Gene Curcio, owner of Los
Angeles-based Crescent Communications Inc, a privately held
telecommunications company.  Curcio was finalising details
crucial to its offer, said Sa'id Mosteshar, a lawyer for
Curcio.

Mosteshar declined to give the size of his client's offer,
or the names of investors in the bid. But Curcio wants
Motorola to agree to continue operating Iridium's
satellites for another 60 to 90 days, the lawyer said.

"We are close to an agreement," Mosteshar said. Spokesmen
for Motorola and Iridium declined to comment.

After the three-month period, Curcio has arranged for
General Dynamics Corp to take over operation of the
satellites. Curcio plans to use the Iridium system to
provide mobile-phone services in areas of the world poorly
served by land-based phones, such as in remote parts of
Brazil, Africa and the Middle East.

Motorola Corp, Iridium's creator and biggest investor, was
prepared to shut down Iridium today, disconnect its
customers and let the satellites burn up in the Earth's
atmosphere.  Iridium, which has mustered only 50,000
subscribers since launching service in the fall of 1998,
has debts of about US$4.4 billion. (The Nation  18-March-
2000)

KRUNG THAI BANK: To get an AMC by mid-year
------------------------------------------
The prolonged dispute over the establishment of state-owned
Krung Thai Bank's asset management company (AMC) has ended
with the Financial Institutions Development Fund (FIDF)
committee deciding to take up a 100per cent stake in the
AMC.

The resolution comes in the wake of Krung Thai Bank
president Singh Tangtatswas's petition two days ago. He had
said that his bank could continue only up to the end of
June without an AMC setup because it was in dire need of an
additional Bt40 billion to fulfil the 100 per cent
provisioning reserves criteria.

Salinee Wangtal, a senior official of the Bank of Thailand,
said the establishment of the AMC should be completed by
mid-year.

Finance Ministry permanent secretary Supachai Pisitvanich
said that Krung Thai Bank would transfer all assets
belonging to the now defunct First Bangkok City Bank (FBCB)
to the AMC. The assets were transferred to Krung Thai Bank
in late 1998 as part of the government's comprehensive
banking reform measures.

The bank will transfer to the AMC all 12-month past-due
loans that had been already reserved in full.  According to
Krung Thai's financial statement, FBCB's assets transferred
to the bank amounted to Bt290 billion and it carried non-
performing loans worth Bt363.46 million, or 49.5 per cent
of the total credit.

Through this method, the rescue arm controlling the lion's
share in Krung Thai, at 93.5 per cent, was not required to
inject additional capital after such transfer because the
bank would be able to book revenue incurred from the sales
of the transferred assets at a discounted rate, Supachai
said. Recently, the FIDF had pumped Bt108 billion into the
bank.

"The AMC will gather distressed assets and I believe that
Krung Thai will be a solid bank," he said.

According to Salinee, the bank will have to return some
capital to the FIDF since it would have excessive capital
after the loan transfer, as a result, the fund's ownership
would have to decline to about 90 per cent.

However, if the rescue arm requested to maintain its
shareholding, the bank might issue free warrants to it, the
warrants enable the fund to convert into the bank's common
shares in the future, she said.  The exercise price was
possible to be Bt10 apiece but the fund would have to take
a certain period for exercising the warrants, Salinee
added.

Allowance the FIDF to own wholly shares in the FIDF would
be the best method for the FIDF because it would have to
spend a relatively small amount of new fund in setting the
AMC, she stated. As of 1999, KTB had set aside 80 per cent
of the total provisioning requirements. (The Nation  17-
March-2000)

NATION MULTIMEDIA GROUP: Debenture offer to re-fi debt
------------------------------------------------------
Nation Multimedia Group has announced it will issue Bt500-
million-worth of debentures which will have a range of
interest rates of between 7.75 and 8.125 per cent in the
first three years.

The debentures will be on sale at Thai Farmers Bank between
March 20 and 22, with payment due on March 28, and have a
maturity of five years. The final interest rate to be paid
out in the first three years will depend on the level of
demand. The interest rate for the remaining two years will
either be on the same level as the minimum lending rate of
the country's biggest five commercial banks, or the fixed
rate paid out in the first three years - whichever is
higher.

Interest payments will be made every six months. Principal
repayment will be made in five equal instalments, the first
one being made at the end of the third year. Subsequent
payments will be made every six months thereafter. This
debenture lot is the second part of a Bt1-billion debenture
issue.

Vanchai Sriherunrusmee, Nation Multimedia Group's chief
financial officer, said the new debenture issue would be
used to refinance the company's short-term debts which
carry higher interest rates, and will help to propel high
profitability from this year to 2004. The batch will also
help restructure the company's short-term debt into a
longer one with known interest costs. (The Nation  17-
March-2000)

TELECOMASIA CORP.: Rehab's share buy-back plan outlined
-------------------------------------------------------
About 100 investors turned out yesterday for a
presentation by TelecomAsia Corporation Plc on a share buy-
back scheme under the company's restructuring plan.

The company said that in December creditors had agreed to
restructure the firm's 63 billion baht in loans.  Under the
plan, German bank KfW will invest $150 million to buy 702
million convertible preferred shares.  This will give the
bank a 24% stake in TA after the capital increase. Funds
are to be paid on March 31.

Existing shareholders would be given the opportunity to buy
the preferred shares from KfW, said Veeravat Kanchanadul,
TA's vice-chairman.  Shares bought from KfW will be
converted to common shares immediately. Purchase rights for
shareholders for the KfW shares are not transferable.
The purchase price will vary based on the time of purchase
and prevailing exchange rates.

For the first year, the price is set at 11.85 baht, rising
to 21.4 baht in the second, 22.74 baht in the third and
33.94 baht in the eighth and final year.  The prices are
based on exchange rates of 38.5 baht to the US dollar. If
the baht appreciates, the price will fall. KfW also
reserves the right to adjust prices if TA raises new
capital or adjusts its capital structure.

KfW will give shareholders the right to buy shares for the
first three years, after which it will retain the right to
sell shares to other investors. The share register to buy
shares from KfW will close on April 7.  KfW will buy half
the convertible preferred shares directly from TelecomAsia,
with the remainder bought through the Thai Trust Fund. The
split purchase is necessary to keep the overall foreign
shareholding below 49%.

Investors remained mixed on the financial benefits of
buying shares outright. One analyst noted that share prices
were expected to tumble due to dilution effects once
payment is received on March 31.  Surachart
Suranchutpakorn, a shareholder, said he planned to keep his
TA shares but would not exercise his right to buy shares
from KfW for several more years.

He said he believed that the baht had the potential to
appreciate soon, which would reduce the purchase price.
TelecomAsia has around 30,000 retail investors. Information
on the purchase rights is available through TA's web site
at: www.TELECOMASIA.CO.TH.

Shares of TelecomAsia on the Stock Exchange of Thailand
closed at 52 baht yesterday, up 1.50, on turnover worth
160.61 million baht. (Bangkok Post  17-March-2000)

THAIOIL CO.: Can survive tight squeeze on profit margin
-------------------------------------------------------
Thai Oil Co's mammoth debt-restructuring plan is unlikely
to be affected by government's directive to reduce its
refining margin to help restrain rising domestic oil
prices.

Managing director Chulchit Bunyaketu insisted that despite
the cut in the refining margin by US$1 a barrel to $4, the
country's largest oil refinery would still be able to
recover its production costs as well as generate some
profit.

The bottom-line refining margin for Thaioil is $3.50 a
barrel, meeting the requirement by creditors after debt-
restructuring is completed. In other words, the reduction
will have no effect on the debt-restructuring plan which
the Central Bankruptcy Court is expected to approve on
March 31.  The final agreement, which will slash Thaioil's
total debt to about $1.4 billion from $2.2 billion, with
repayment over 14 years, will probably be signed on April
3.

Under pressure from the government, three large oil
refiners-Thaioil, Rayong Refinery Co and Star Petroleum
Refining Co-on Wednesday reluctantly agreed to reduce their
margins temporarily. The state-run Petroleum Authority of
Thailand (PTT) is a major shareholder in the companies.

The firms argued that their margin-the amount that covers
their operating costs and profit-had soared only recently
in line with those of Singapore refineries on which their
ex-refinery prices are based. Their refining margin during
the period hit $6-$8 a barrel from $1.70-$2 previously.
They agreed to reduce the margin for a limited period
because they need to repay huge debts and make up for heavy
losses in recent years. The margin cut means that Thaioil
will lose about 50 million baht a week in revenue.

Local refiners will be happy with an average margin of $5 a
barrel, according to an official of the National Energy
Policy Office.  As a result of the agreement, major oil
companies will today cut the local pump price by 25 satang
per litre for premium petrol and high-speed diesel oil,
while the the price of regular petrol will drop by 45
satang. The new price for premium petrol in Greater Bangkok
is 15.44 baht, 14.44 baht for regular, and 12.82 baht for
diesel.

Meanwhile, the PTT urged farmers to take advantage of a
special discount of at least 15 satang per litre from the
normal pump price for diesel. Those eligible are clients of
the Bank for Agriculture and Co-operatives.  Since Dec 5
last year, the discount has been offered through 274 PTT
service stations in 47 provinces. The programme is being
extended to all 1,500 PTT service stations nationwide.
(Bangkok Post  17-March-2000)

THAI PETROCHEM.INDUS.: Court ruling explained, hailed
-----------------------------------------------------
Legal experts say the landmark ruling by the Central
Bankruptcy Court that Thai Petrochemical Industry was
insolvent would help set a benchmark for future bankruptcy
and restructuring cases in Thailand.

The court cited the company's inability to service its debt
as one factor for its ruling in favour of creditors to
place the industrial giant under a business rehabilitation
plan.   TPI's arguments that assets exceeded liabilities
was rejected on grounds that valuations were not done in
line with industry practice.

Apichart Phunkesorn, an attorney at Johnson Stokes &
Masters, said the ruling would help make corporate
restructuring more effective, with the TPI ruling serving
as a guideline for future cases.  Analysts and investors
had earlier criticised Thailand's bankruptcy regime as too
lenient and dependent on a narrow reading of insolvency
based on net worth, instead of the broader international
standard of a firm's capacity to service debt.

Kitipong Urapeepatanapong, a partner of Baker & McKenzie,
said under the old bankruptcy code, the court would assess
only a firm's assets and liabilities.  But under the new
law, the court would also take a look at a company's
shareholders' equity and other factors in making a ruling.

TPI had argued that at the end of the third quarter, its
assets stood at 169.13 billion baht, against liabilities of
140.7 billion. But the court ruled that independent
auditors had not expressed an opinion on the statements.
Mr Apichart said TPI also set a new standard practice for
other creditors filing bankruptcy suits against borrowers
on the need for detailed information to prove insolvency.

"It doesn't mean that rulings in all bankruptcy cases would
turn out like the TPI case. You need to look at the
information provided by both sides," he said.

Several legal experts agreed that amendments to the
Bankruptcy Act were still needed to define insolvency
clearly, rather than leave the issue to the court. Pakorn
Malakul Na Ayudhya, deputy governor of the Bank of
Thailand, said the ruling would help boost confidence among
investors and creditors in the bankruptcy regime and debt
restructuring process.  He said more creditors were
expected to take legal action against delinquent borrowers.

Meanwhile, the next phase of the battle between TPI and
creditors will be in selecting a planner for the
restructuring. The court said TPI would serve as temporary
planner, until a creditor vote within two months.
Effective Planners, a subsidiary of consulting firm Ferrier
Hodgson, has been proposed by the main creditors, including
Bangkok Bank, Bank of America, Citibank, US Export-Import
Bank and International Finance Corporation.

Meanwhile, TPI, led by chief executive and founder Prachai
Leopairatana, has proposed itself as planner.  A two-thirds
vote of approval by creditors is necessary. All creditors
with claims prior to Wednesday will be allowed to vote.
Anthony Norman, managing director of Ferrier Hodgson,
expressed confidence that a planner would be selected
within two months. But he said there remained
uncertainties, with the nomination of other planners one
possibility.

If a consensus cannot be achieved among creditors, the
court has the discretion to appoint one directly, or cancel
the reorganisation petition entirely, forcing the entire
case to start again.

The delay, Mr Norman said, was for the court-appointed
receiver to value creditor's claims. "The debts of
financial creditors are clear, but the value of trade
creditors are yet unknown."Debt held by financial
institutions was around US$3.5 billion, Mr Norman said,
while claims by trade creditors were estimated at $100
million.

The next two months give TPI more room for manoeuvre. TPI
led a strident campaign against Effective Planners,
testifying in court that the firm was intent on dismantling
the firm and selling its assets to benefit creditors.

Another denied claim was that Effective Planners had
violated a court order by not selling assets in another
restructuring case, in Hong Kong. TPI also accused the firm
of writing into plans a fee of 3% for any asset sales.
The creditor steering committee insists that it has no
plans to dismantle the company.

"It wishes to reassure all TPI stakeholders and the public
that it has never proposed and has no plans to take over
TPI," a statement from the committee said. "The
rehabilitation plan under consideration does not entail any
breakup of the company or sale of any of its core assets.
Employees will retain their jobs and suppliers, customers
and creditors will be unaffected."

Mr Norman said he expected "more of a smear campaign and
criticism [from TPI]." He did not rule out a defamation
case. (Bangkok Post  17-March-2000)


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

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

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