---

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

                             A S I A   P A C I F I C

              Thursday, March 23, 2000, Vol. 3, No. 58

                                      Headlines


* A U S T R A L I A *

BENDICO FABRIC DYEWORKS: Employees need Gov't intervention
LINTER: Focus on $100m 'mistake'


* C H I N A  &  H O N G  K O N G *

ANKOR GROUP: To be sole vehicle for Renren growth
SIU FUNG CERAMICS HOLDINGS: Bandaging bleeding
SUNRISE CIVIL ENGINEERING LTD: Facing winding up petition


* I N D O N E S I A *

PT BAKRIE FINANCE: Remains suspended pending court appeal
PT DHARMALA SEJAHTERA FINANCE: Must file rehab plan by Apr.
PT ENSEVAL PUTRA MEGA TRADING: In debt-restructure deal
PT GAJAH SURYA FINANCE: Must file rehab plan by April


* J A P A N *

CRESVALE INT'L LTD.: SESC accuses it of illegal sales
FUJI CORP.: To halve inventory, debt from peak levels
MINAMI SECURITIES: Court declares bankrupt
MITSUI MINING & SMELTING CO.: Speeds up debt reduction
MORI SEIKI: Stock price rises, still to lose money
NISSAN DIESEL: To sell land of Ageo plant
SATO KOGYO: To pay down 10B Yen in debt this month


* K O R E A *

DAEWOO MOTOR: Hyundai to evaluate assets
NARA BANKING CORP.: W3.4T in deposits due for return
SAMSUNG MOTORS: Renault investment plans welcomed
SAMSUNG MOTORS: Local creditors urge Renault sale
SEOUL BANK: Asks for US$1.5B financing in public funds


* M A L A Y S I A *

INTRAKOTA CONSOLIDATED: Effectively bankrupt
KTM BHD: Effectively bankrupt
NALURI BHD: To sell stake in MAS as part of rehab
PARK MAY BHD: Effectively bankrupt
PROJECT USAHASAMA TRANSIT: Effectively bankrupt
SISTEM TRANSIT ALIRAN RINGAN: Effectively bankrupt


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

NATIONAL POWER CORP.: Shelves new IPP projects to cut costs
NATIONAL STEEL CORP.: Duferco willing to put up fresh funds
VICTORIAS MILLING CO.: Overseer mulling alternative rehabs


* S I N G A P O R E *

CLOB INT'L: 72% acceptance for Effective Capital proposal


* T H A I L A N D *

BANGKOK METROPOLITAN BANK: Sale expected by month-end
BANGKOK METROPOLITAN BANK: HSBC confirms bid
IRIDIUM SOUTHEAST ASIA: Permanently closed
MALEE SAMPRAN PLC: Restructuring to clear debt by 2003
NAWARAT PATANAKARN: Filed petition for rehabilitation
PADAENG INDUSTRY: Restructured co. eyes foreign investor
SAMAKI SARN (DOKYA): Founder to plan rehabilitation
THAI MILITARY BANK: Denies seeking more Gov't support
THAI PETROCHEM.INDUS.: Weak baht drags TPI into red
THAI PETROCHEM.INDUS.: "SP" sign lifted and "NR" posted  


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

BENDICO FABRIC DYEWORKS: Employees need Gov't intervention
----------------------------------------------------------
Sixty sacked textile workers will lose their entitlements
unless the Federal Government intervenes, the textiles
union warned today.

The workers from Bendico (Bendico) Fabric Dyeworks in north
suburban Coburg were recently stood down by the ailing
company and received official notification of job losses
last night.  The workers recently learnt their employer had
deducted tax from their pay packets but failed to pass it
on to the tax office.

The tax office used its powers to recover the money from
debtors of the company, cutting off a vital supply of
income to keep the firm's doors open.  The company's
administrator Paul Patterson told ABC Radio he had no
option but to sack the workers and they would miss out on
their entitlements.

But the Textile Clothing and Footwear Union of Australia's
(TCFUA) state secretary Michele O'Neil (Michele O'Neil)
said it was up to the federal government to guarantee the
workers' entitlements.

"The government is playing around with the edges," she told
ABC Radio. "They need to immediately establish a proper
scheme that requires companies to put aside workers'
entitlements."  (AAP News  17-March-2000)

LINTER: Focus on $100m 'mistake'
--------------------------------
The liquidator of the failed Australian textile group
Linter said on 20 March 2000 if he had been an auditor he
would have made further enquiries about transactions in
1989 which led to the group's $A1 billion collapse.

The liquidator, KPMG partner Lindsay Maxsted, was giving
evidence as the first witness in a $A600 million lawsuit
against Linter's auditors, the former Price Waterhouse.
Price Waterhouse's counsel Tom Bathurst cross-examined
Maxsted about a $A100 million round-robin transaction
between Linter and another company Gibraltar Factors,
Elders Finance and Entrad Ltd.

The payment appeared in Linter's financial records as a
$A100 million promissory note extended to Gibraltar Factors
and was later recorded as being repaid. Price Waterhouse
said when it enquired about the transaction it was told it
was a "mistake." (ABIX  21-March-2000)


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

ANKOR GROUP: To be sole vehicle for Renren growth
-------------------------------------------------
Renren Media Holdings plans to use soon-to-be acquired
Ankor Group, a listed car dealer, to make acquisitions and
to oversee its Internet expansion, according to Renren
chief executive Michael Robinson.

Renren Media Holdings still had no plan to inject its only
asset - Chinese-language portal Renren.com - into Ankor, Mr
Robinson said yesterday.  However, Ankor would benefit from
Renren.com's operation, as 95 per cent of the portal's
revenue would be booked with Ankor, he said.

"The role of Ankor is to be the beneficiary of all the
operations of Renren.com," Mr Robinson said.

Brokers and fund managers have been critical of the
takeover of troubled Ankor, citing the lack of a solid
business strategy to make the company profitable.
Ankor reported a loss of $27.7 million in the half to June
30 last year.

Renren.com, which was launched in May, posted a net loss of
$21.7 million in the year to December 31 on turnover of
$3.6 million.  Ankor can use Renren.com's brand name
without incurred the cost in building up the brand, the
company said.  Ankor shares fell 11.26 per cent yesterday
to close at 63 cents.

The counter closed at $1.17 on March 15, when Renren
Holdings announced it had bought an 81.56 per cent stake in
Ankor for $229 million.

"The co-operation agreement [between Ankor and Renren] made
sure all the substance of Renren.com, including the people,
brand name and 95 per cent of all the future revenue, will
go into Ankor," Mr Robinson said.  "There will be no other
public vehicle. And we have no plan to spin-off
Renren.com."

Renren Media Holdings 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. (South China Morning Post  22-March-2000)

SIU FUNG CERAMICS HOLDINGS: Bandaging bleeding
----------------------------------------------
Beleaguered Siu-Fung Ceramics Holdings is still losing
money, but has trimmed its losses considerably since
haemorrhaging red ink in 1998.

Yesterday the company said it posted a net loss in the year
to December 31 of $148.2 million, a considerable
improvement on the $1.44 billion lost in 1998.  The
company, which has been restructuring itself and battling
creditors in recent years, said turnover plummeted to $18.8
million from $63.4 million in 1998.

Its share of associated companies' losses fell to $936,000
from $3.5 million, and its share of losses from
unconsolidated subsidiaries shrank to $41.1 million,
compared with the $626.5 million in 1998. Losses per share
were down almost tenfold at 10.3 cents, compared with
$1.001.

Siu-Fung Ceramics also issued a fresh set of figures for
1998 to reflect its adoption of new accounting standards
during 1999. The figures show the company, which has been
struggling to turn its operations around, racked up total
net losses of $1.81 billion in the three years to the end
of last December.

In a published statement, Siu-Fung said it had last year
intensified efforts to resolve its financial problems,
including a conditional agreement under which an investor
would buy Siu-Fung Ceramics' debts from creditors for $70
million.  The new investor planned to then swap the debt
for equity, to end up with about 90 per cent of Siu-Fung,
which would then issue new shares to maintain the public
float of 25 per cent.

By late last year most lenders and noteholders had agreed
to the in-principle restructuring proposal.  Siu-Fung makes
and sells kilns, ceramics rollers, spare parts and
accessories and ceramic products, tiles and tableware.
But Siu-Fung yesterday said that, despite reaching last
year's in-principle agreement, it had not yet finalised a
restructuring proposal.

"The group's financial performance was further compromised
by litigation in the PRC during the year. In May a court
judgement was made against an unconsolidated subsidiary to
take over certain factories in China as compensation on
breach of a management agreement," it said.

Siu-Fung said it had to cope with the loss of some of its
assets, and had to defend itself against creditors. Of a
$287 million operating loss in 1999, some $268 million
arose from the sale of some of the group's offices.

"During the year, winding up petitions were presented by a
major bank creditor against the company and its three major
subsidiaries in respect of the demand of unfulfilled
repayment of outstanding bank loans and overdraft," it
said. The hearing of this petition has been postponed until
May 9 this year, pending the outcome of its financial
restructuring.

Yesterday's figures included a disclaimer from the
company's auditors. "The financial statements have been
prepared on a going-concern basis. The auditors consider
that appropriate disclosures have been made. However, in
view of the dependency of the group on the successful
completion of financial restructuring, the auditors
disclaim their opinion in respect of the fundamental
uncertainty relating to the going-concern basis," it said.
(Hong Kong Standard  22-March-2000)

SUNRISE CIVIL ENGINEERING LTD: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for May 10 on the petition of Chu
Ho Sum for the winding up of Sunrise Civil Engineering
Limited. A notice of legal appearance must be filed on or
before May 9.


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

PT BAKRIE FINANCE: Remains suspended pending court appeal
---------------------------------------------------------
The Jakarta Stock Exchange said shares of PT Bakrie Finance
Corp will remain suspended despite a decision last week by
the Jakarta commercial court to reject a 13.45 mln usd
bankruptcy suit against the company.

"The status of PT Bakrie Finance Corporation's shares
suspension will be decided when the Jakarta Commercial
Court decides on an appeal," the JSX said, without giving
further details.

The plaintiffs in the bankruptcy suit are AB Capital
Markets (Hong Kong) Ltd, Cho Hung Leasing and Finance (Hong
Kong) Ltd, Hanmi Leasing and Finance (Hong Kong) Ltd, and
KEB Leasing and Finance Ltd. (AFX  News Limited  20-March-
2000)

PT DHARMALA SEJAHTERA FINANCE: Must file rehab plan by Apr.
PT GAJAH SURYA FINANCE: Must file rehab plan by April
-----------------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) has set a
March 31 deadline for 48 finance companies to submit debt
restructuring plans, IBRA loan workout and collection group
head Andreas Bunanta said.

"Forty eight debtors are in the process of preparing
restructuring plans to be submitted no later than March
31," Bunanta told a media briefing.

The 48, which include PT Gajah Surya Finance and PT
Dharmala Sejahtera Finance, are among 115 finance companies
under the supervision of IBRA with outstanding principal
loans of 8.6 trln rupiah.  The only finance company to have
repaid IBRA in full so far is PT Astra Sedaya Finance, a
unit of PT Astra International.

Bunanta said of the other debtors, seven are being handled
through legal means including PT Putra Surya Multidana and
PT BII Finance.  Five other debtors have lost contact with
the agency and will be dealt with by legal means if they do
not re-establish dialogue prior to March 31, he said.
Only one of the finance companies under IBRA has so far
been declared bankrupt; PT Ometraco Multiartha.  (AFX News
Limited  21-March-2000)

PT ENSEVAL PUTRA MEGA TRADING: In debt-restructure deal
-------------------------------------------------------
PT Enseval Putra Mega Trading Tbk (JSX:EPMT) has secured an
agreement from its creditors, made up mainly of Singaporean
banks, to reschedule its debt amounting to $US57 million,
according to a letter made public by the Jakarta Stock
Exchange.

The letter sent by the company to the exchange said that
under the agreement signed on March 10 in Singapore, the
pharmaceutical trading company was to pay $US10.23 million
in advance of the total debt to the syndicate and every
three months it is to pay $US1.25 million in instalments
with interest 1.3% above SIBOR.

With the debt restructuring concluded, the company would be
able to focus on business development, the management said.
In last week's trading, ERPMT shares were traded at the
highest price of Rp1,025/share and lowest at Rp37/shares
with transaction volume of 1.632 million shares. (Asia
Pulse  20-March-2000)


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

CRESVALE INT'L LTD.: SESC accuses it of illegal sales
-----------------------------------------------------
Japan's Securities and Exchange Surveillance Commission
(SESC) said Wednesday that it has filed a complaint with
local prosecutors against Cresvale International Ltd. and
its former officials, including former chairman Akira
Setogawa, regarding illegal sales of "Princeton" privately
placed bonds.

"The SESC yesterday filed a complaint with the Tokyo local
prosecutors' office (against Cresvale and its former
officials) as there is a suspicion that (Cresvale) violated
the securities and exchange law," the SESC said.  "Even
though the bonds were not officially approved by the Bank
of Japan and Ministry of Finance, (Cresvale) conducted
sales activities using false materials," the SESC noted.
(Nikkei  22-March-2000)

FUJI CORP.: To halve inventory, debt from peak levels
-----------------------------------------------------
Fuji Corp. (8860) expects to report real estate inventory
of about 22.1 billion yen as of March 31, down 37% or 12.8
billion yen from a year ago.

The midsize housing developer's inventory has fallen to
roughly half the 44.1 billion yen peak reported at the
September 1991 midterm. As a result, interest-bearing
liabilities are also expected to contract to about 23
billion yen as of the end of this fiscal year, compared
with the peak of 46.5 billion yen.

Fuji was carrying losses mainly on properties acquired up
to 1992. It has been selling properties at a loss until
now, but this fiscal year it will take a write-down of
about 4.2 billion yen on the value of remaining properties,
eliminating unrealized losses.

Anticipating interest rate increases, the developer also
plans to further reduce interest-bearing liabilities.
(Nikkei  22-March-2000)

MINAMI SECURITIES: Court declares bankrupt
------------------------------------------
The Tokyo District Court on Tuesday declared Minami
Securities Co. bankrupt and issued a formal order barring
creditors of the small brokerage from seizing its assets.

The court made the declaration in response to an
application filed earlier this month by the Financial
Supervisory Agency (FSA), which found that Minami,
based in Maebashi, Gumma Prefecture, had a negative net
worth of 367 million yen.  According to Teikoku Databank, a
private credit-research agency, Minami has liabilities
totaling 18 billion yen.

The assets of the brokerage are already in the custody of a
receiver appointed by the Tokyo court, which issued an
injunction against the seizure of Minami's assets when the
FSA filed the bankruptcy application on March 6.  FSA
examiners found that Minami put only 800 million yen into
the custody of trust banks out of 1.2 billion yen in
margins that customers deposited with the brokerage.

The 400 million yen difference remains unaccounted for in
the company's books.  The whereabouts of Minami Securities
President Koichi Hirata, who is believed to be in
possession of entrusted securities worth 3.2 billion yen,
are unknown.  Last Friday, the Kanto Local Finance Bureau,
a Finance Ministry arm, revoked Minami's business
registration.  (Mainichi Daily News  22-March-2000

MITSUI MINING & SMELTING CO.: Speeds up debt reduction
------------------------------------------------------
Mitsui Mining & Smelting Co. (5706) expects to show group
interest-bearing liabilities of about 235 billion yen as of
March 31, a decline of 56 billion yen from a year ago.

This means the nonferrous metal company will have
accomplished the debt reduction goal put forth in its
current business plan one year earlier than proposed. It
hopes to slash debt by another 10 billion yen next fiscal
year.

The faster reduction is attributed to a rise in free cash
flow stemming from the concentration of its resources in
the profitable area of electronics materials in earlier
years. The company expects to generate free cash flow of 16
billion yen this fiscal year, and these funds are used to
repay debt. A gain of some 11 billion yen from the sale of
fixed assets will also be used to repay loans.

Thanks to its rising share price, the company's convertible
bonds have also undergone a wave of conversions, and the
combined outstanding balance of bonds issued up to last
fiscal year should decline by about 15.3 billion yen.
(Nikkei  22-March-2000)

MORI SEIKI: Stock price rises, still to lose money
--------------------------------------------------
Mori Seiki Co. (6141) shares rebounded sharply after
falling March 6 to a recent low of 1,289 yen, and by March
17, they had risen for seven consecutive sessions to 1,679
yen.

A trader at the Osaka branch of Daiwa Securities SB Capital
Markets Co. says foreign and other investors have taken
another look at the stock in view of rebounding capital
investment in information technology and precision
machinery.  However, on March 21, profit-takers moved in
and brought the shares down again.  

Orders for machine tools in January were higher than the
year-earlier level for the first time in 23 months,
according to data from the Japan Machine Tool Builders'
Association, and February also showed a rise.

"Years of restraint in capital investment mean that Japan's
machinery base is aging, and demand for new machinery
should start rising sharply," says Morgan Stanley analyst
Minoru Kawahara.

Mori Seiki is expected to record a 2.5 billion yen pretax
loss for fiscal 1999, compared with a 7.7 billion yen
profit the year before. Machinery sales were slack,
particularly in the first half of the fiscal year, and the
strength of the yen led to foreign-exchange losses on
securities.

However, demand for machine tools is reviving and the
company has trimmed overseas inventories, so it expects to
record a 3 billion yen pretax profit next fiscal year.
If the recovery in the machinery market continues, the
share price has plenty of room for a real rally, says one
analyst. (Nikkei  22-March-2000)

NISSAN DIESEL: To sell land of Ageo plant
-----------------------------------------
Nissan Diesel Motor Co. (7210) will this month sell the
land of its Ageo plant in Saitama Prefecture under a
securitization deal, the company formally decided Tuesday
at its board of directors meeting.

The deal is part of a business restructuring plan in which
four of the company's main banks, including Industrial Bank
of Japan (8302), are participating.  Nissan Diesel will use
a profit of 22.1 billion yen from the sale to help reduce
its group's 500 billion yen in interest-bearing
liabilities.

The company will transfer the 400,000-sq.-meter Ageo plant
plot and an adjacent 32,000-sq.-meter unused land to a
trust vehicle set up by Yasuda Trust & Banking Co. (8404),
one of Nissan Diesel's primary banks, for 25.5 billion yen.
Yasuda Trust & Banking will issue securities backed by
beneficiary rights to the trust through a special-purpose
company.

Nissan Diesel will lease the land from Yasuda Trust &
Banking and continue to produce trucks at the Ageo plant.
(Nikkei  22-March-2000)

SATO KOGYO: To pay down 10B Yen in debt this month
--------------------------------------------------
Sato Kogyo Co. (1804) is poised to pay off a total of 10
billion yen in outstanding debt to about 70 financial
institutions at the end of March, prorating repayments to
the size of each institution's lending balance.

The debt repayments put Sato Kogyo on track with the first
year of a 10-year debt restructuring plan under which the
general contractor will reduce its interest-bearing debt by
140 billion yen from 290 billion yen at the end of fiscal
1998.

Sato Kogyo expects to pay down a total of 80 billion yen --
8 billion yen each year -- with cash flow from its core
operations, financing the remaining 60 billion yen with
asset sales and the handover of deposits to lenders.
For the current fiscal year ending March 31, Sato Kogyo
will pay down unsecured short-term debt, generating 6.5
billion yen through operating revenues and the remainder
through sales of shares from its portfolio and collection
of accounts receivable.

The total debt repayment for the entire fiscal year is
actually around 14 billion yen, when disposal of collateral
and takeover of compensating deposits is factored in.
As part of the debt restructuring plan, Sato Kogyo lenders
canceled a total of 110.9 billion yen in debt. (Nikkei  22-
March-2000)


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

DAEWOO MOTOR: Hyundai to evaluate assets
----------------------------------------
To move ahead with its bid to take over ailing competitor
Daewoo Motor, Hyundai Motor plans to kick off an asset
evaluation of Daewoo Motor starting from as early as next
week.

Hyundai, which is the nation's largest automaker, said
Tuesday that the two firms are fine-tuning the details of
the schedule for the asset evaluation. The Hyundai
subsidiary also said the asset evaluation would cover
Daewoo Motor's foreign affiliates and production plants.
(Digital Chosun  21-March-2000)

NARA BANKING CORP.: W3.4T in deposits due for return
----------------------------------------------------
Nara Banking Corp has 3.4 trln won in customer deposits due
to be returned by the government, according to findings of
a due diligence review conducted by Korea Deposit Insurance
Corp (KDIC).

Nara Banking has been suspended since Jan 20 after it
experienced a run arising from its weak financial
condition.  The KDIC added that Nara holds loans to Daewoo
Group units totalling 1.3 trln won.

KDIC said retail depositors accounted for 300 bln won of
the total accounts at Nara Banking, while corporate
investors took up 1.5 trln won and financial institutions
1.6 trln won.  The net asset shortage, or the extent to
which debts exceed assets, was calculated at 1.9 trln won
by KDIC standards, and less than 1.3 trln according to
criteria set by the Financial Supervisory Service. The FSS
said a decision on the future of Nara Banking has been
deferred to April 22 from March 22.

"As the sale talks with Yeungnam Merchant Banking have
virtually collapsed, it is not certain whether or not (it
will be sold to others) or be liquidated," an FSS official
said.  (AFX News Limited  20-March-2000)

SAMSUNG MOTORS: Renault investment plans welcomed
-------------------------------------------------
South Korea's bankrupt Samsung Motors Inc. on Tuesday
welcomed plans by France's Renault SA to invest 500 million
dollars in it if it takes over the failed auto
manufacturer.

"We ardently welcome Renault's investment plan," said Seong
Kun-Je, a spokesman of Samsung Motors.  "But what really
matters is that Renault and our creditors have yet to reach
an agreement on the takeover deal," he said. "We hope that
creditors will make a smooth settlement in talks with
Renault."

The comments came one day after Renault announced it would
invest 500 million dollars over four years after it is
successful in its bid to acquire a 70 percent stake in
Samsung Motors.  But Renault's offer came after local
creditors of Samsung Motors said the deal had all but
collapsed over Renault's alleged failure to compromise in a
dispute over the selling price of the company.

A Renault spokesman said in a statement in Paris on Monday:
"As well as buying (Samsung Motors') operating assets, the
new company will need to invest 500 million dollars over
the next four years."

Thenew company's initial capital -- put at 335 million
dollars, of which Renault would contribute 235 million and
Samsung 100 million -- would provide the bulk of the
investment package, he said.  It was unclear how the
remaining 165 million dollars would be raised.

Renault's announcement came immediately after Hanvit Bank,
Samsung Motors' main creditor, warned in Seoul that
Renault's bid was destined for failure if it did not
increase its proposed initial cash payment offer.
At last week's session, creditors lowered their selling
price from one trillion won to 695 billion won (622 million
dollars) while Renault stuck to its initial offer of 502
billion won (450 million dollars), a Hanvit official said.

Renault proposed paying 50 million dollars in cash up front
and the remaining 400 million dollars in instalments by
using profits it might generate from Samsung Motors'
operations, the official said.

"The offer did not interest the local creditors at all," he
said. "What Renault should really do is to increase its
initial cash payment."

Negotiators from both sides will hold a second round of
talks in Paris on the price dispute soon, he said. Seoul's
Yonhap News Agency said the round would go ahead in the
French capital on Saturday.  Renault now has until March 31
to achieve a breakthrough in the talks as its three-month
exclusive negoitiator status expires at the end of the
month.

Samsung Motors which was launched in March 1998 was later
placed under court receivership last July with a 4.3
trillion won debt.  (Agence France Presse  21-March-2000)

SAMSUNG MOTORS: Local creditors urge Renault sale
-------------------------------------------------
Residents of South Korea's southeastern port city of Pusan
on Wednesday urged local creditors of Samsung Motors Inc.
to speed up the sale of the crippled auto firm to France's
Renault SA.

"Any delay in the bargaining would inevitably spark a chain
of bankruptcies (among parts suppliers)," Kim Kwang-Hong,
head of an auto parts supplier in Pusan, told a news
conference in Seoul.

Unless full operations of Samsung Motors was resumed, he
warned, some 2,100 subcontractors would be forced out of
business transforming state-of-the art facilities into
"useless junk."  Kim was among some 100 residents --
including Samsung Motors' local subcontractors, civic group
activists and Pusan city officials -- who travelled
to Seoul to call for an early settlement in the stalled
negotiations.

"Renault is the only alternative to resuscitate Samsung
Motors," read a statement released at the news conference.

It said Renault was the best buyer of Samsung Motors as the
French manufacturer promises to continue to produce the
present SM5 model car for which Pusan local firms have
provided auto parts.

"If other firms, instead of Renault, take over (Samsung
Motors), it will be inevitable that the parts suppliers
will go bankrupt because of a halt in production of the SM5
model," it said.

The Pusan residents were among members of a "committee to
save the auto industry in Pusan" which opened a Seoul
office Wednesday to promote the sale of Samsung Motors at
the news conference.  South Korean creditors and Renault
are in deadlock after a week of fruitless bargaining due to
a price dispute in Seoul last week, ahead of a second round
in Paris on Saturday.

But chances for a breakthrough in the next round remained
dim as creditors warned the next round could fail unless
the French auto giant better its price offer, notably its
cash payments.

"We will send an ultimatum to Renault on Thursday," an
official of Hanvit Bank, Samsung Motors' main creditor,
told AFP in Seoul Tuesday, stressing creditors were not
prepared to concede much in the price dispute.

Last week, creditors lowered their selling price from one
trillion won to 695 billion won (622 million dollars) while
Renault stuck to its initial offer of 502 billion won (450
million dollars), the official said.  Creditors have
threatend to put the firm up for international auction
unless Renault compromises.  Samsung Motors, which was
launched in March 1998, was placed in court receivership
last July with a 4.3 trillion won debt.  (Agence France
Presse  22-March-2000)

SEOUL BANK: Asks for US$1.5B financing in public funds
------------------------------------------------------
Seoul Bank asked the government to provide a total of 1.8
trillion won (about US$1.5 billion) in public fund to
normalize its banking operation, according to industry
sources.

Of the requested fund, the Korean bank will spend 1
trillion won (US$850 million) for settlement of insolvent
assets and 800 billion won (US$650 million) to solve its
liquidity problem.  The bank also submitted its plan for
normalization to the Financial Supervisory Commission,
which include a layoff of nearly 20% of its employees, or
about 1,000 workers including executives.

Bank officials estimated that they may not be able to
collect about 1.07 trillion won (US$930 million) of credit
the bank provided to business groups such as Dong-A, Miju
and Jindo that are placed under corporate workout programs.
They said Seoul Bank will be able to normalize its
operation within the next three years under the planned
self-relief plan and further financial aid from the
government. (World Reporter  20-March-2000)


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

INTRAKOTA CONSOLIDATED: Effectively bankrupt
KTM BHD: Effectively bankrupt
PARK MAY BHD: Effectively bankrupt
PROJECT USAHASAMA TRANSIT: Effectively bankrupt
SISTEM TRANSIT ALIRAN RINGAN: Effectively bankrupt
--------------------------------------------------
Malaysia needs to urgently restructure its public
transportation sector which is now being burdened with
about RM10bil in debt.

Halcrow Consultants Sdn Bhd regional director, C. Paul
Buchanan said a restructuring was needed for both the
public transportation market and the operators' debts.
The five main operators are Sistem Transit Aliran Ringan
Sdn Bhd (STAR), Project Usahasama Transit Ringan Automatik
Sdn Bhd (PUTRA), Intrakota Consolidated Bhd, Park May Bhd
and KTM Bhd (the KTM Komuter operator).

"Two major problems have now emerged. All the operators are
effectively bankrupt, none can meet their existing and
future debt obligations," said Buchanan.  "There are also a
number of operational problems which mean that Kuala Lumpur
is not making best use of the new infrastructure provided,"
he said.

Buchanan said this in his paper presented at the Corporate
Debt Restructuring in Malaysia: A Mid-Term Assessment
conference.

Buchanan, who has been involved in many privatised highway
projects in Malaysia, has been working with the Corporate
Debt Restructuring Committee (CDRC) in the last six months
on the restructuring of public transport in Kuala Lumpur
and the privatisation of KTM Bhd.

He said there had been almost no integration between the
five public transport systems, with each operator
determining their own fares in negotiation with the
Government.  Buchanan said the investment made by the two
leading bus operators (Intrakota and Park May) were based
on exclusive operating rights and this would have enabled
them to cross-subsidise the social routes from the
profitable ones.

"In reality, 14 independent operators now provide about one
third of total bus services, but obviously only the
financially viable routes," he said.

Buchanan said there was no chance of the public transport
operators ever repaying any of their debts without massive
changes in government policies on fares, infrastructure and
car use.  "Even with such changes, the operators will only
be able to repay a tiny proportion of the outstanding
liabilities," he said.

Buchanan noted that the public transportation sector's
commercial debts were effectively underwritten by the
Government within the concession agreements.  Therefore, he
said, the debt restructuring for the public transportation
sector involved injecting public money.

"The details are still being negotiated between CDRC and
the Treasury. It will then need to be negotiated with the
banks and operators," said Buchanan. (The Star  22-March-
2000)

NALURI BHD: To sell stake in MAS as part of rehab
-------------------------------------------------
Naluri Bhd will sell part of its 29 pct stake in Malaysian
Airline System Bhd as part of its debt restructuring
exercise, Corporate Debt Restructuring Committee (CDRC)
chairman C. Rajandram said.

However, "Naluri will continue to be the predominant
shareholder," Rajandram said.

Details of Naluri's debt restructuring scheme will be
announced in less than a month, he said, adding that the
company's debts will be repaid on a structured basis over a
period of time.  Rajandram also said the value of Malaysia
Airlines shares are expected to be enhanced following the
airline's debt restructuring.

Other asset sales in Naluri's restructuring, including the
Malaysia Airlines stake sale will be subject to market
conditions, he added.  Asked if selling a stake in the
national airline will need government approval, Rajandram
said the government is up-to-date on Naluri's restructuring
plans.  Naluri's debt total some 1.2 bln rgt, he added.

Rajandram said no decision has been made regarding the
buyer of the Malaysia Airlines stake or if the shares will
be sold in the open market.  At 12:19 pm, Malaysia Airlines
was down 0.06 at 3.72 rgt on 229,000 shares, while Naluri
was up 0.02 at 1.62 on 706,000 shares.  (AFX News Limited  
21-March-2000)


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

NATIONAL POWER CORP.: Shelves new IPP projects to cut costs
-----------------------------------------------------------
National Power Corp. has deferred the commissioning of new
projects with independent power producers to save the
state-run company about $400 million in expenditures.

Napocor officials said new projects were shelved so that
Napocor could focus on restructuring existing agreements
with PNOC-Energy Development Corp., Salcon Power, Alsons
Tomen, BWSC of Denmark, Southern Energy, Enron Corp. and
First Private Power Corp.

Napocor has requested these companies to exclude from their
contracts some of the accounts payable to them. It is also
asking that some of the obligations due now be deferred for
a later date, normally toward the remaining years of the
contract.

An official said this could prove advantageous for
independent power producers since Napocor was proposing to
defer the payment beyond the duration of the contract,
which might lead to an extension of the original contract.

Napocor has been negotiating for a deferment of its debt
payments since last year but it has encountered stiff
opposition from its creditors.  Its efforts to trim its
contracts with independent power producers have, in
particular, strained its renegotiations with Bauang Private
Power Corp.

"The problem is more of explaining this to our creditors
because renegotiating the contract would be the same as
restructuring our contracts," said Ernesto Pantangco,
executive vice president and chief operating officer of
BPPC.

BPPC operates a 225-megawatt diesel-fired power plant in
Bauang, La Union, and is a subsidiary of First Private
Power Corp. It has an existing 15-year power supply
contract with Napocor.  The Napocor official admitted the
arrangements made by independent power producers with their
creditors had slowed down Napocor's efforts to renegotiate
its contracts with these firms.

"These IPPs are not amenable to reduce certain fees such as
the take-or-pay payments as they need the money for debt
servicing. Some have allowed back-ending the contract," he
said.

Napocor has been successful in working out new terms in its
contract with Southern Energy last year, which agreed to
pre-terminate the operations and maintenance contracts for
nine power barges. The deal resulted in the sale of these
barges and savings amounting to P2.6 billion. (Philippine
Daily Inquirer  22-March-2000)

NATIONAL STEEL CORP.: Duferco willing to put up fresh funds
-----------------------------------------------------------
Swiss steel maker Duferco is prepared to infuse an initial
100 mln usd into National Steel Corp to hasten the
rehabilitation of the Philippines' largest but debt-
stricken steel firm, an official of the NSC's steering
committee said.

The steering committee which includes as members NSC's
creditor banks such as Philippine National Bank, Land Bank
of the Philippines, Asian Banking Corp and Bank Agricole,
met for the first time yesterday to discuss the options for
the rehabilitation of the steel firm.  The official who
asked not to be identified did not say how much stake
Duferco is considering acquiring in exchange for the
infusion.

National Steel shut down operations in November last year
and creditor banks threatened to foreclose on its loans
estimated at nearly 16 bln pesos.  The Securities and
Exchange Commission has granted the steel firm its
requested 90-day debt moratorium which expired last week.
An interim receiver committee and a steering body were
appointed to draft the rehabilitation plan for the steel
firm.

National Steel is majority-owned by Malaysian-owned Hottick
Investments with about 82.5 pct stake. The government keeps
a 12.5 pct stake while the remaining 5 pct equity is held
by Japan's Marubeni Corp.  Other companies said to be
interested in the steel firm were Cathay Pacific Steel
Corp, British Steel and Ispat International.  (AFX News
Limited  21-March-2000)

VICTORIAS MILLING CO.: Overseer mulling alternative rehabs
----------------------------------------------------------
The overseer of Victorias Milling Corp is looking at
alternative rehabilitation plans, including a joint venture
proposal from Jardine Davies Inc, after the bidding for
majority stake in the firm failed, bidding committee
chairman and EastWest Bank executive vice president Gerardo
Anonas said.

"The failure of bidding opens the door for the Jardine
Davies proposal and for other proposals to be considered,"
Anonas said.

Jardine Davies, which owns sugar miller Hawaiian
Philippines Co in central Viasayas, had earlier submitted
to the firm's management committee a joint venture
proposal, which had to be shelved for the bidding process
to take place.

Victorias Milling's management committee yesterday held the
bidding for 53.35 pct of the firm but declared it a failure
after none of the prequalifed bidders Cargill Inc and RCBC
Capital showed up.  Among the other options being
considered by the management committee is a negotiated sale
to Cargill after the latter said it remained interested
to acquire the sugar miller.

"Although they (Cargill) declined to bid due to some
reasons, internal or external to the company, they
indicated that they were still interested and still
consider Victorias as a valuable asset," Anonas said.

RCBC Capital did not indicate the same interest, he said.
Victorias Milling filed a petition for debt payment
suspension with the SEC in 1997, saying the country's over-
importation of sugar has impaired its operations.  

Sources said potential investors did not participate in the
public auction because they were turned off by VMC's
staggering debt and by the "very strict" rehabilitation
program prepared by the management committee (mancom).

"Nobody bidded because the company has simply too much
debt. The guideline says that bidders have to abide
strictly with the rehabilitation program. Being saddled
with more than six billion Philippine pesos (US$146.5
million at PhP40.961:US$1) in debt is not a good way to
start," one of the sources said.

"At this point, there really has to be substantial
reduction in debt. It cannot sustain that level of debt and
be rehabilitated," the source added.

Mr. Anonas explained the rehabilitation plan was prepared
in 1997, after VMC ran to the Securities and Exchange
Commission (SEC) for suspension of payments.  After a two-
and-a-half-year delay, the company's unpaid interest became
bloated by PhP1.2 billion ($29.3 million), he said.
As a result, VMC's debts ballooned to PhP6.5 billion
($158.7 million) from PhP5.2 billion ($126.95 million). Of
this amount, PhP4.2 billion ($102.5 million) or 64.62% was
unsecured, he added.

Mr. Anonas stressed, however, that VMC's assets remain
bigger than its liabilities. "Fixed assets are between PhP4
billion and PhP4.5 billion ($97.7 million-$109.9 million).
Total assets are enough to cover liabilities," he said.

He added VMC's equity has gone down to "very minimal." Last
year, the listed sugar miller posted a net worth of PhP300
million ($7.3 million).  Mr. Anonas said prospective
partners should at least have an experience in running
sugar milling operations and be able to provide added
value, such as additional raw sugar for milling. "They
should also have a little cash. These are logical
qualifications," he said.

He said the Gokongweis, who own holding firm JG Summit
Holdings, Inc., have expressed interest, but they have to
submit a written proposal.  Sources said, meanwhile, that
the RCBC Capital Corp. and Central Azucarera Don Pedro
(CADP) group is adopting a "wait-and-see" stance.

Meanwhile, while liquidation remains "a logical scenario"
in the event of a failure in rehabilitation, Mr. Anonas
said liquidation will be considered only as a last resort.
Mr. Anonas said VMC has been operating more efficiently in
the past year. They have managed to trim down the workforce
to 2,700 from 4,800, he said.

"That is already an achievement. Our target is 1,700. Part
of the rehabilitation plan is to reduce manpower... The
recovery rate is good," he said.  (AFX News Limited  21-
March-2000, Business Day  22-March-2000)


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

CLOB INT'L: 72% acceptance for Effective Capital proposal
---------------------------------------------------------
Almost 72% or 124,500 investors have so far accepted
Effective Capital Sdn Bhd's proposal to unlock their frozen
Malaysian securities formerly traded on Singapore's Central
Limit Order Book (Clob) over-the-counter market.

According to a report in The Straits Times of Singapore,
more than 50,000 acceptances were received over the last
three days alone with the bulk coming during weekends.
Singapore's Central Depository (Pte) Ltd (CDP) has set a
March 27 deadline for investors to submit their
acceptances.

Effective Capital has said it expected up to 90% of the
172,000 Clob investors to accept its proposal which
involved a 16-month migration and staggered release of the
securities for trading on the KLSE.  Trading of the
securities on Clob was suspended after Malaysia introduced
selective capital controls in September 1998. (The Star  
22-March-2000)


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

BANGKOK METROPOLITAN BANK: Sale expected by month-end
-----------------------------------------------------
The sale of a 75 percent stake of financially troubled
Bangkok Metropolitan Bank's (BMB) to a new owner is
expected to be completed by the end of this month,
according to BMB President Somchai Sakulsurarat.

There have been unconfirmed reports that Hong Kong and
Shanghai Banking Corporation (HSBC) had agreed to pay 40
billion baht for 75 percent stake in BMB.  Somchai said he
can't disclose the identity of the new owner, adding that
all of the bank's employees would be retained after the
sale. He said BMB had already reduced staff by nearly
1,000, leaving 43,00 employees at 177 branches.

"The number of employees is appropriate to operate the bank
of this size. However, the new owner may bring in new
technology to replace human resources as has been done by
foreign investors," he said.

Earlier, the Financial Institutions Development Fund (FIDF)
had sold two banks - Radanasin and Nakornthon Bank - to
foreign investors. Following the sales, the two banks
reduced staff.  As far as non-performing loans are
concerned, Somcahi said BMB has made a significant progress
in dealing with the bad debts.

"As of end of February, the bank's NPL stood at 117 billion
baht or 63.23 percent of total lendings, compared to 66.21
percent and 80 percent in 1999 and 1998, respectively"

Currently, BMB has an equity of minus 6 billion baht with
loan provision of 57 billion baht, or 95 percent of the
amount required. Since FIDF is a sole owner, the Bank of
Thailand (BOT) allows BMB to operate with negative equity.

Somchai commented on Thai banks being taking over by
foreign investors as a necessity to revive the country's
banking business, adding that BMB needs 21 billion baht to
raise its capital to the BOT's standard, which is
impossible without a new owner. (Business Day  21-March-
2000)

BANGKOK METROPOLITAN BANK: HSBC confirms bid
--------------------------------------------
The Hongkong and Shanghai Banking Corporation (HSBC), the
Asian arm of HSBC Holdings, is near an agreement to buy
Bangkok Metropolitan Bank (BMB), said HSBC chairman David
Eldon.  Talks are in the final stages, Eldon said, "Still,
no agreement has yet been reached," he said.

The company is also reviewing its strategy for acquisitions
"to decide whether or not we should in fact become a little
more proactive," he said. "The only problem with us saying
we are on the acquisition trail is that the price of
everything seems to go up."

HongkongBank's profit in 1999 rose 66 percent to HK$17.9
billion (US$2.3 billion), as Asian economies recovered from
recession, the company said last month. That gave the bank
"strong liquidity and capital," said Eldon at the time.

HSBC is not considering buying the Bank of Western
Australia, Westpac Banking Corp, or insurer Colonial, all
rumored takeover targets, said Eldon.

"Whenever a bank or an insurer appears to be on the market
our name usually gets associated with a potential
purchase," said Eldon.

Thai authorities are trying to sell 75 percent of Bangkok
Metropolitan, one of six banks seized or shuttered since
1995. HSBC has for several months been viewed as favorite
to win the bidding for the bank. (Business Day  22-March-
2000)

IRIDIUM SOUTHEAST ASIA: Permanently closed
------------------------------------------
Thai Satellite Telecommunication Co, a subsidiary of United
Communication Industry Plc (Ucom), yesterday formally
announced the permanent closure of Iridium Southeast Asia
(Isea) and the end of the satellite-based mobile phone
service in the region.

It also planned to make refunds to 700 local and overseas
subscribers in either cash or with digital mobile-phone
handsets.  TSC's executive vice-president, Vice-Admiral
Vira Chongcharoen, said Isea would close its business
permanently as a result of the financial problems facing
the US-based Iridium Inc's Iridium project.

However, he said that the closure of Isea would have no
impact on Ucom, which had already written off 1.842 billion
baht of bad debt by the end of last year.  Ucom has no
commitment to take responsibility in the future for any
liabilities arising from the permanent shutdown of the
project, he said.

Vice-Admiral Vira said that Isea had begun to lay off staff
when the project faced problems. "We still have 65 staff to
continue giving services to the 700 subscribers-300
customers living in Thailand and 400 overseas.

"But he said that because Isea had shut down, it planned to
refund the 15,000-baht deposit to subscribers who leased
the phones. However, for subscribers who bought phones, the
company was thinking of allowing them to trade in their
handsets for 1800 mobile phones. This option would be
discussed again by the company's executives at the end of
the week," he said.

Vice-Admiral Vira said that Isea had invested 1.8 billion
baht in the Iridium gateways in Bang Buathong and Nakhon
Ratchasima.  Lao Star has shown interest in buying the
facilities and price negotiations are under way. Isea had a
registered capital of 1.75 billion baht with TSC holding a
51% stake and the remaining 49% held by Japanese investors
in the name of Kyocera and DDI.

Vice-Admiral Vira said that after the shutdown of the
gateway in Thailand, Isea had also notified Iridium service
providers in the region. (Bangkok Post  22-March-2000)

MALEE SAMPRAN PLC: Restructuring to clear debt by 2003
------------------------------------------------------
After two years of debt restructuring, Malee Sampran Plc, a
fruit processor, expects its debt of 338 million baht to be
repaid by 2003.

For the last two years, the company had restructured its
management, reduced the number of staff and controlled
costs, Chatchai Boonyarat, the chairman, said yesterday.
Last year, the firm recorded total revenue of 2.73 billion
baht and a net loss of 78 million baht, or 1.6 baht per
share.  However, it spent 237 million baht on a new plant
at Nakhon Phanom to can up to 80,000 tons of sweet corn a
year.

The company's other factory, at Nakhon Pathom, makes a
total of 15 million cases a year of canned fruit and fruit
juice.  Malee Sampran expects sales campaigns to lift its
revenue to four billion baht this year, from 2.73 billion
last year. In 2003, it expects revenue of 10 billion baht,
largely from exports.

Mr Chatchai said Asia would be the prime market. The
company's products are sold in 63 countries.  Last year,
exports contributed 39% to the company's total revenue. The
European Union was the biggest, taking 53% of the exports,
followed by Asia (20%), the United States (17%), the Middle
East (3%) and others (7%).

The market for canned fruit in Thailand is worth two
billion baht a year, and that for canned fruit one billion
baht. The two markets are expected to grow more than 20%
this year, according to the company.  Malee's shares closed
at 9.40 baht yesterday, up 1.40 baht.  (Bangkok Post  22-
March-2000)

NAWARAT PATANAKARN: Filed petition for rehabilitation
-----------------------------------------------------
Nawarat Patanakarn asked the SET to temporarily suspend
trading in its shares because two of its creditors had
filed a petition for rehabilitation of the company to the
Central Bankruptcy Court. The suspension will be effective
until the court rules the petition.

The court ruled that the company should go under the
rehabilitation process, and further nominated Mr. Mana
Karnasuta as rehabilitation planner.  (Bangkok Post, Stock
Exchange of Thailand  21-March-2000)

PADAENG INDUSTRY: Restructured co. eyes foreign investor
--------------------------------------------------------
Padaeng Industry (PDI), the only mining company listed on
the Stock Exchange of Thailand (SET), is negotiating with
the UK-based Commonwealth Bank, which is one of the two
foreign businesses interested in buying PDI equity.

A source from the brokerage industrytold Business Day that
PDI is in need of finding a new investor to buy 75.10
million shares, or 33.23 percent of its whole equity, in
order to bail itself out of a 1.142 billion baht debt.
The source said Commonwealt Bank will replace Australia's
Western Metals which informed PDI of its decision to
withdraw from investing in PDI.

The Australian company has paid the first installment of
91.42 million baht for 6.5 million PDI shares, out of the
81.63 million shares, in an earlier deal. The price under
the purchase agreement was 14 baht per share, and the
payment would have to be made in four installments during
October 1998-July 1999.

The same source indicated that foreign investors were
interested in buying shares of PDI because of many
encouraging factors, including the value of PDI assets.
PDI still has an abundance of zinc reserves at its Maesod
mine, and PDI's smelting plant is the only one in Southeast
Asia.  The price of PDI share in the stock market was 10.50
baht yesterday.

Another source from PDI disclosed that there have been two
to three foreign financial institutions showing interest in
buying PDI shares. The company has appointed Jardine
Fleming Thanakom Securities (JF) as broker in handling PDI
shares sale.  PDI President and Chief Executive Officer
Pinit Wongmasa informed the SET yesterday that the
company's board of directors have unanimously agreed to
negotiate the sale of 75.10 million shares exclusively with
a foreign company, believed to be Common Wealth Bank.

PDI has settled debt, restructuring with nine financial
institutions, with the repayment periods of one year for
the amount of 1.142 billion baht and another 2.285 billion
baht in three years. (Business Day  22-March-2000)

SAMAKI SARN (DOKYA): Founder to plan rehabilitation
---------------------------------------------------
The Central Bankruptcy court yesterday appointed South
Sathorn Planner and Narongsak Tantipinitpong, founder of
Samaki Sarn (Dokya), to prepare a rehabilitation plan.

The decision reflected the majority vote of creditors on
Friday. The planner will have 90 days to complete the plan.
Former Dokya executive Den Koremaksorn and five creditors
had challenged the appointment but the court overruled
their petition. Mr Narongsak said the decision meant that
Mr Den could no longer be involved in the management of
Dokya.

The book publisher and retailer owes 800 million baht to
lenders and trade creditors. Another 11 suppliers claim to
be owed 200 million baht. (Bangkok Post  21-March-2000)

THAI MILITARY BANK: Denies seeking more Gov't support
-----------------------------------------------------
Thai Military Bank, the country's sixth-largest bank,
denied reports it's asking the government for more capital
support than earlier planned.

The bank last October delayed a 30 billion baht ($789
million) share sale because of low demand from foreign
investors. That plan earmarked half the shares for the
government through its finance industry rescue program. The
bank, like almost all Thai lenders, needs more capital to
pay for bad loans and fund new credits.

Thai newspapers reported that Thai Military was asking the
government to increase its investment to 25 billion baht
from 15 billion baht, though the bailout program requires
the maximum government investment to match new private
investment. The newspapers sourced their reports to
unidentified people at the central bank.

The reports are "not true," Thai Military Bank told the
stock exchange, giving no new details about its plans to
raise capital. The bank's directors are scheduled to meet
today.

"Concern among investors about TMB's health will remain
until the bank has a clear share-sale plan ready," said
Adisak Kammool, an analyst at Philip Securities Thailand.
Thai Military Bank has also been slower than most of its
rivals in dealing with delinquent loans, he said.

About 30 percent of Thai Military's loans were delinquent
by at least three months at the end of December. That's the
average among Thailand's eight privately owned banks.

Thai Military hired Salomon Smith Barney in February for
advice and to manage its share sale. Credit Suisse First
Boston arranged a sale last year that was scrapped. Salomon
last year managed a sale by Siam Commercial Bank, which
raised 65 billion baht, half from the government's rescue
fund.

Newspapers reported that Thai Military now needs 40 billion
baht to sufficiently resolve its bad loan problems and meet
regulatory standards by year's end. The papers said the
bank recently asked for 25 billion baht of government
funds, but the request was rejected.

Thai Military Bank shares were suspended briefly from trade
yesterday as the exchange asked the company to clarify the
reports. They fell as much as 3.3 percent to 8.7 baht. The
stock has fallen 45 percent this year. (Business Day  21-
March-2000)

THAI PETROCHEM.INDUS.: Weak baht drags TPI into red
---------------------------------------------------
Thai Petrochemical Industry (TPI), the country's largest
delinquent debtor which was declared insolvent last week,
fell to a loss last year because of a weaker baht and
rising interest expenses.

The company reported a net loss of 6.7 billion baht (about
HK$1.37 billion), or 3.84 baht per share, compared with a
revised profit of 22.4 billion baht, or 11.51 baht per
share, in 1998.  TPI said it had a 2.31 billion baht
currency translation loss, as a 2.2 per cent decline in the
baht against the US dollar raised the baht value of its
US$2.8 billion foreign debt.

By comparison, the baht surged 27 per cent against the US
dollar in 1998, allowing TPI to record a currency gain of
about 25 billion baht.  Sales rose 22 per cent to 56
billion baht as petrochemical prices surged from their
trough in the third-quarter of 1998.  TPI, which makes a
variety of chemicals and petroleum products, also started a
polypropylene plant in August 1998, which helped boost
sales.

"The economic condition in Asia has improved considerably
and the petrochemical business is on the upswing," chief
financial officer Wachirapunthu Promprasert said just
before the insolvency ruling last week.

The company said its gross margin was little changed from a
year earlier, at 23 per cent, while interest expense
increased 21 per cent to 12.3 billion baht. (South China
Morning Post  21-March-2000)

THAI PETROCHEM.INDUS.: "SP" sign lifted and "NR" posted  
-------------------------------------------------------
The Stock Exchange of Thailand (SET) posted the "NP"
(Notice Pending) and the "SP" sign on the securities of
Thai Petrochemical Industry Public Company Limited (TPI) on
1 March and 8 March 2000 respectively since the company
failed to disclose the company financial statements for the
period ending 31 December 1999 within the deadline.

Now, the company has publicly released to the SET and
investors its financial statements. Therefore, the SET has
lifted the NP sign and SP sign posted on the company's
securities and replaced it with an NR sign effective on 21
March 2000 onwards.

The SET would like the investors to consider the company's
financial status and operating results from the financial
statements, the auditor's report and note to financial
statements carefully. In addition, the investors should
also consider the decision made by the Central Bankruptcy
Court. (The Stock Exchange of Thailand  21-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
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
DC USA. Darryl Henning, Managing Editor, Feliz Ordona and
Cristina Pernites, Editors.

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

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

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

                 *** End of Transmission ***