/raid1/www/Hosts/bankrupt/TCRAP_Public/000406.MBX      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, April 6, 2000, Vol. 3, No. 68

                                  Headlines


* A U S T R A L I A *

ST.GEORGE BANK: Loses court appeal


* C H I N A  &  H O N G  K O N G *

JIANGLING MOTORS: Warns of loss for last year
QPL INTERNATIONAL HOLDINGS: Reports gain to HKSE
REGAL ASIA (HONG KONG) LTD: Facing winding up petition
THE NAHDREE GROUP INC.: Facing winding up petition


* I N D O N E S I A *

PT A. LATIEF: IBRA to file bankruptcy
PT ASTRA INT'L: Eschews rights issue to help repay debt
PT BANK OF CENTRAL ASIA: IBRA to launch sale next week
PT OMETRACO: IBRA to file bankruptcy
PT PT SAMURINDO SWADAYA SEJAHTERA: IBRA to file bankruptcy
PT SUMI ASIH: IBRA to file bankruptcy


* J A P A N *

FUJITSU CORP.: Nasdaq fall brings stock down, too
HIKARI TSUSHIN: Nasdaq fall brings stock down, too
KANSAI ELEC.POWER CO.: 5-year, Y700B debt-cutting plan
MITSUBISHI CHEMICAL CORP.: Expects 26B Yen group net loss
NIKKO CO.: To post pretax loss for 2nd straight year
NTT DATA: Nasdaq fall brings stock down, too
SOFTBANK CORP.: Nasdaq fall brings stock down, too


* K O R E A *

DAEWOO MOTORS: GM rules out consortium with Hyundai
DAEWOO MOTORS: DaimlerChrysler still in the running
HANA BANK: Borrows to pay down foreign debt
HOUSING-COMMERCIAL BANK: Borrows to pay down foreign debt
KOOKMIN BANK: Borrows to pay down foreign debt
SAMSUNG MOTORS: Renault talks collapse over debt
SAMSUNG MOTORS: Sale delay until after general elections


* M A L A Y S I A *

EKSONS CORP BHD: Switches focus after reverse takeover
MCL CORP BHD: Revamps scheme gets court approval


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

MONDRAGON INT'L PHIL.: Sees final-investor talks this month
NATIONAL POWER COPR.: Gov't may restructure Napocor loans
PHILIPPINE NAT.BANK: Sale with Tan to raise $700M for Gov't
RURAL BANK OF SAN MIGUEL: Loses appeal on receivership


* T H A I L A N D *

NAKORNTHAI STRIP MILL: Explains delisting situation to SET
ROBINSONS DEPT.STORE : Shareholders back debt-swap plan
SAMMITR MOTORS: Bangkok Bank restructures loans
THAI MILITARY BANK: Unveils plans to raise 40B baht
THAI MILITARY BANK : Charoen eyes TMB stake


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

ST.GEORGE BANK: Loses court appeal
----------------------------------
St George Bank yesterday failed in a Full Court appeal
concerning its bungled attempt to off-load 20 million St
Barbara Mines shares it held as security for money owing by
private companies of former St Barbara chief Mr Ross
Atkins.

The court yesterday upheld an earlier ruling that a bank
executive did not properly exercise a put option in June
1998 that should have allowed an Atkins company to sell 20
million St Barbara shares to Mr Danny Hill's Westgold
Resources at 40c each, more than three times their market
value.

The bungled exercise of the option and court orders in
November 1998 for St George to return an $8 million
security deposit to Westgold, were the first major public
blows to Mr Atkins on his fall into bankruptcy.
The option flop is believed to have saddled Mr Atkins with
an extra $8 million in debt to the bank, less the market
value of the 20 million St Barbara shares it was stuck
with.

The put option was part of a complicated series of St
George financed transactions in July 1997 whereby Westgold
sold more than 30 million shares in St Barbara to Mr
Atkins.  The deals, struck when Mr Atkins was fighting for
control of St Barbara, further soured after the put option
fiasco when a Supreme Court master found Mr Atkins owed
Westgold $8.76 million for the purchase of 11.4 million St
Barbara shares.

Mr Atkins was made bankrupt by the Federal Court in
February this year. He quit as St Barbara executive
chairman in May last year.  Yesterday's judgment related to
a November 1998 decision by Justice Robert Anderson, who
found that St George manager Mr Chris Briggs attempted to
exercise the option without any attempt to conform with an
option exercise form attached to an agreement struck a year
earlier.

Justice Anderson said the form, which had been agreed upon
by the Atkins company Emlen Pty Ltd and Westgold after
intense negotiation and meticulous drafting, should have
been used. He said Westgold wanted the exercise right to be
strictly defined and strictly confined, such as the
exercise date being restricted to June 30 and Emlen having
no right to take the $8 million unless it complied strictly
with the put option deed.

Three appeal judges found yesterday that the form should
have been used by St George, with two saying strict
compliance was necessary. (Sydney Morning Herald  05-April-
2000)


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

JIANGLING MOTORS: Warns of loss for last year
---------------------------------------------
Shenzhen-listed light vehicle-maker Jiangling Motors has
warned it will post a net loss for last year, partly due to
changes in accounting rules.

"Our company forecasts that it will post relatively heavy
losses for 1999 due to the new accounting rules and rising
costs," it said.

Final figures would be announced in the company's 1999
annual report, the company said without giving further
details.  This will be the second straight annual loss for
Jiangling, which has both hard-currency B shares and
domestic A shares listed on the Shenzhen stock exchange.
The company reported a net loss of 50.3 million yuan (HK$47
million) in 1998. It made a net profit of 44.1 million yuan
in 1997 under domestic accounting rules. (South China
Morning Post  05-April-2000)

QPL INTERNATIONAL HOLDINGS: Reports gain to HKSE
------------------------------------------------
The Board of Directors of QPL International Holdings
Limited, through Li Tung Lok, Chairman,  announces that QPL
will be entitled to receive an additional consideration of
US$25 million (approximately HK$194 million) under the
major investment offering of QPL relating to the investment
in ASAT by, amongst others, Chase Asia Equity Partners as
the ASAT Group has achieved the agreed EBITDA target.

The additional consideration is payable because ASAT Group
was able to achieve a certain target in respect to its
earnings before interest, income taxes, depreciation and
amortisation excluding non-recurring exceptional items and
extraordinary gains and losses ("EBITDA") for the year
ended 31st December, 1999.

The accountants appointed under the investment documents
confirmed that the ASAT Group has achieved the agreed
EBITDA target and an additional consideration of US$25
million (approximately HK$194 million) is payable by the
investors to the Group. The additional consideration will
be payable in cash no later than the earlier of ASAT's
initial public offering and the second anniversary of the
closing date of the major transaction (i.e. 29th October,
2001).

Fifty percent of the net proceeds will be used to repay
QPL's indebtedness under the current arrangements with its
creditors and the balance will be used as working capital
of the Group.  (Hong Kong Stock Exchange  05-April-2000)

REGAL ASIA (HONG KONG) LTD: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for May 3 on the petition of
Gurung, Naresh for the winding up of Regal Asia (Hong Kong)
Limited. A notice of legal appearance must be filed on or
before May 2.

THE NAHDREE GROUP INC.: Facing winding up petition
--------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for April 26 on the petition of Hui
Kam Lin for the winding up of The Nahdree Group, Inc. A
notice of legal appearance must be filed on or before April
25.


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

PT A. LATIEF: IBRA to file bankruptcy
PT OMETRACO: IBRA to file bankruptcy
PT PT SAMURINDO SWADAYA SEJAHTERA: IBRA to file bankruptcy
PT SUMI ASIH: IBRA to file bankruptcy
----------------------------------------------------------
Under pressure to crack down on uncooperative debtors, the
Indonesian bank Restructuring Agenc (IBRA) said it would
begin bankruptcy proceedings against four companies.

The government's debt-restructuring body also asked the
independent ad hoc judges be assigned to the cases and
questions over the bankruptcy court.  Augustus Sani
Nugroho, legal division head in IBRA's loan-recovery
department said the agency was taking PT A. Latief Corp.,
PT Ometraco Corp., PT Samurindo Swadaya Sejahtera and PT
Sumi Asih to the bankruptcy court.

Although the companies are not IBRA's largest debtors, Mr.
Nugroho said they have been deemed uncooperative and failed
to sign agreements to restructure their debts. IBRA also
said it had seized the assets of a fifth debtor, PT Mas
Murni Indonesia. The assets include a hotel and partment
block in East Java.

Indonesia is under pressure from the International Monetary
Fund to make progress in bank and corporate restructuring.
The IMF said last week it was delaying the next installment
of its loan to the country until he government meets a host
of deadlines spelled out in its agreement with the fund.
Among other things, the IMF wants the government to move
quicker against uncooperative debtors and crack down in
high-profile corruption cases.

Several small companies have been declared insolvent. But
foreign banks seeking to recover debt say that the
bankruptcy court has been lenient toward larger companies.
IBRA was set up in january 1998 to help resuscitate
Indonesia's struggling financial system.  IBRA officials
rejected suggestions that it requested the special judges
because it doesn't trust the legal system.

"We think our cases are specific and complicated cases,
that we think could be settled faster by ad hoc judges,"
said Munir Waspada, a legal officer in IBRA's debt-
restructuring department. (Asia Pacific News  04-April-
2000)

PT ASTRA INT'L: Eschews rights issue to help repay debt
-------------------------------------------------------
PT Astra International won't hold a rights issue to help
repay debts following the sale of a 40 % stake to a
consortium led by Singapore's Cycle & Carriage Ltd., said
Aminuddin, Astra's vice-president-director of
communications.

The Indonesia diversified auto maker, which last year
reached a $ 1.2 billion debt-restructuring eal with foreign
and domestic creditors, is confident that it can meet its
repayments from existing cash flow and doesn't need to
divest assets, he said.

However, analysts say Astra's new owners want to see the
company sticks to its divestment program, including selling
down stakes in automobile and motorcycle joing ventures
with Honada Co and Isuzu Motors Ltd.  The consortium will
name six members to an expanded 12-person board of
commissioners at a shareholders meeting in May, Mr.
Aminuddin said. Three commissioners from the Indonesian
Bank Restructuring Agency, which sold the Astra to the
consortium, will step down.

In addition to Cycle & Carriage, the consotium comprises
the government of Singapore Investment Corp.,or GIC; Lazard
Asia Fund, a unit of investment bank Lazard Freres & Co.,
PT Bhakti Investama, an Indonesian Investment Fund ; and
Batavia Investment Management Ltd. (Asian Wall Street
Journal  04-April-2000)

PT BANK OF CENTRAL ASIA: IBRA to launch sale next week
------------------------------------------------------
Indonesia's government, aiming to maintain the momentum it
gained by selling the nation's leading carmaker, said it
would sell shares in PT Bank Central Asia -- once the
country's biggest bank -- from April 10.

The Indonesian Bank Restructuring Agency (Ibra) said it
plans a two-week promotional tour and aims to woo investors
from Singapore to New York to a sale that analysts have
said could fetch about US$400 million (S$686 million).

"How much we sell will depend on the response we get," said
Jerry Ng, deputy chairman of the agency. "We're prepared to
sell between 15 to 30 per cent."

A successful sale would be another step in Ibra's drive to
recoup the US$86 billion cost of repairing a banking
industry that was crippled by Asia's 1997 financial crisis.
It would also help further convince foreign investors that
the country -- recently shaken by political upheaval and
ethnic violence -- is capable of rebuilding itself.

IBRA, which last month sold 38 per cent of automaker PT
Astra to foreign investors -- acquired more than 90 per
cent of BCA, the financial arm of the diversified Salim
Group, after a run on deposits weakened the bank in the
weeks leading to the downfall of former Indonesian
president Suharto in May 1998. Before the crisis, BCA was
the country's biggest bank.

Still, analysts say the agency may struggle to sell Bank
Central Asia shares. Indonesia's economy is struggling to
recover from its worst recession in decades. It recorded
zero economic expansion in 1999 and after shrinking more
than 13 per cent in 1998, though the government expects
gross domestic product to expand by more than 4 per cent
this year.

The "appetite for banks in Indonesia isn't so good," said
Steven Lim, who helps manage S$800 million for Daiwa
International Capital Management (Singapore) Ltd. "There is
little confidence in terms of speed of reforms and the
state of the domestic economy." That's bad news for Ibra,
which has stumbled while trying to sell assets to help the
government plug its Budget deficit.

While the sale of the Astra stake to a group of investors
led by Cycle & Carriage Ltd fetched more than US$500
million, it came after a failed attempt to sell PT Bank
Bali to Standard Chartered, and delays in the sale of
Astra. Bank Central Asia's sale was twice postponed, partly
over political controversy surrounding the Salim family's 7
per cent stake in the bank.

Still, IBRA needs to make the BCA sale go well. The agency
is also planning to sell shares to international investors
this year in PT Bank Danamon, another Indonesian lender
hobbled by the country's financial meltdown.  Merrill Lynch
& Co, Lehman Brothers Inc and Indonesian government-
controlled Danareksa Sekuritas and Bahana Securities are
arranging the BCA share sale. (Business Times  05-April-
2000)


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

FUJITSU CORP.: Nasdaq fall brings stock down, too
HIKARI TSUSHIN: Nasdaq fall brings stock down, too
NTT DATA: Nasdaq fall brings stock down, too
SOFTBANK CORP.: Nasdaq fall brings stock down, too
--------------------------------------------------
The Nasdaq -- more than half of which is made up of
computer companies -- dropped 1.8 percent, and as much as
14 percent in midday trading, with computer-related shares
including Microsoft Corp. and JDS Uniphase Corp. pacing it.

Hikari Tsushin, which sells cellular phone handsets and e-
mail services, extend losses after saying last Thursday it
will report an operating loss of 13 billion yen ($124
million) for the half-year ended February, compared with a
previous forecast of 6 billion yen profit.  Hikari Tsushin,
whose share price rose 30-fold last year, was last offered
at 62,800 against last Thursday's close at 78,800. It
hasn't traded in the past three days as sell offers
outweighed buy bids.

NTT Data, Japan's largest information services operator,
fell 30,000 yen to 1.58 million, extending its three-day
losses to 23 percent, after it widened its group net loss
forecast last Friday 51 percent to 17.8 billion yen for the
year ending last Friday.

Softbank Corp, one's of the world's largest backers of
online businesses, was also offered down, at 80,500,
compared with yesterday's close at 81,500. Fujitsu Ltd.,
Japan's No. 1 computer maker by sales, fell 120 yen to
3,130.  (Bloomberg  04-April-2000)

KANSAI ELEC.POWER CO.: 5-year, Y700B debt-cutting plan
------------------------------------------------------
Kansai Electric Power Co. (9503) plans to slash Y700
billion of its interest-bearing liabilities to reduce them
to Y4.0 trillion by March 2005, Kansai Electric officials
said Tuesday.

Industry deregulation spurred the company to speed up
strengthening its financial status, they said. The
country's second-largest utility Tuesday unveiled its
medium-term strategic plan under which it aims to improve
its balance sheet and attain higher cost efficiency, to
meet growing competition with newcomers in the wake of the
liberalization of Japan's retail power market on March 21.

The officials said that the company will reduce its debt
amount chiefly by limiting its annual capital expenditures
over the next few years.

Last week, the company announced that it will cut capital
spending in the current fiscal year which started April 1
to Y567.8 billion, 6.6% lower than an estimated Y608.2
billion for the previous fiscal year which ended March 31.

Under the medium-term business plan, the company also aims
to raise its net worth ratio to 20% by the year to March
2005, from the estimated 16.7% for the just-ended fiscal
year ended March 31.

Kansai Electric set its average parent pretax profit target
at Y130 billion over the next three fiscal years, compared
with an estimate of Y170 billion for the year to March
2000. It kept its average ratio of return on asset, or ROA,
at 2.3% over the same period, the company officials said.

"Since the existing power companies are under pressure to
lower rates, achieving such targets set under the mid-term
plan is vital for us to stay competitive with emerging
private power suppliers," a Kansai Electric senior official
said at a briefing.

The company plans to slash its number of employees by more
than 1,000 from its current 26,333 over the next five
fiscal years.  As part of its business diversification
efforts, Kansai Electric will increase involvement in other
energy services, such as natural gas, and put a high
priority on introducing information technologies into its
various business operations and services, they said.

Kansai Electric hopes to boost revenues of its group-wide
diversification businesses by as much as 50% in the next 10
years, said the officials. (Nikkei  04-April-2000)

MITSUBISHI CHEMICAL CORP.: Expects 26B Yen group net loss
---------------------------------------------------------
Mitsubishi Chemical Corp. (4010) said Tuesday it now
expects to post a group net loss of 26 billion yen for the
fiscal year ended March 31 due to 83 billion yen in special
losses incurred from business restructuring.

The comprehensive chemical maker said the extraordinary
losses include write-offs of pension fund shortfalls, early
retirement costs, liquidation of affiliated companies and
securities valuation losses.  Some of the losses were
offset by 2.8 billion yen in extraordinary profits on the
sale of securities holdings, Mitsubishi Chemical said.

The outlook for group sales and pretax profit for the just-
ended fiscal year was revised up to 1.650 trillion yen and
35 billion yen, respectively.  The number of group
companies increased over the year, while sales and
profitability at its petrochemical division improved,
Mitsubishi said.

On a parent basis, Mitsubishi Chemical now estimates a
parent net loss of 47 billion yen for fiscal 1999 on sales
of 830 billion yen. The earlier forecast of an 8.0 billion-
yen parent pretax profit is unchanged. (Nikkei  05-April-
2000)

NIKKO CO.: To post pretax loss for 2nd straight year
----------------------------------------------------
Nikko Co. (6306), a manufacturer specializing in civil
engineering and construction plants, announced Tuesday that
it expects to record 100 million yen in pretax losses for
the year ended March 31, down from initial estimates of 600
million yen in pretax profit.

The firm also projects net losses of 50 million yen for
fiscal 1999, which would mark the second straight year it
has fallen into the red. In fiscal 1998, the firm posted
1.18 billion yen in pretax losses and 1.92 billion yen in
net losses. (Nikkei  05-April-2000)


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

DAEWOO MOTORS: GM rules out consortium with Hyundai
---------------------------------------------------
General Motors Corp., a U.S. automaker vying to acquire the
ailing Daewoo Motor, has promised to make a lump sum
payment, should it be chosen as "partner" of the Korean car
maker that has been put on the block for international
tender.

During an interview yesterday, David Jerome, managing
director of GM Korea, said, "Our previous bid was not like
that," when asked whether GM would follow suit with Renault
of France by offering a small downpayment coupled with
piecemeal installments over a long period of time in its
exclusive negotiations for the purchase of Samsung Motors.

"No one criticized GM for a low and cheap bid in December
(when GM made an offer to buy its former partner Daewoo
Motor)," the GM's pointman for Korean operations said,
confirming that $5-6 billion was the price that he can
confirm was GM's bid last year but the price can change
citing a new bidding process.

"But I must emphasize that the success of Daewoo as a
global player in the future has a lot more to do than with
just price," said Jerome, who has been assigned here a
second time following his first stint from 1992-1996,
dubbing a potential partnership between the two companies
as mutually beneficial.

"Daewoo could benefit from GM's ability to market and bring
these products to the world as well as help create some of
the same efficiency that now drives the industry around the
world, and consolidating it and bringing it into Korea,
something that Daewoo alone can't do by itself," he said.

Touching on one of most sensitive issues concerning its bid
for Daewoo, the top GM Korea man said it is not GM's
intention to fire any of the existing Daewoo personnel when
GM takes over.

"We have said that we are pleased with operations in Korea
as they are," he said. "Our focus is not this element but
elements such as enhancing technology strengthening
purchasing power. We have not come here to change the world
overnight. We have a lot to learn from Korea and from
Daewoo."

The fear of a major cut to Daewoo's existing payroll under
foreign ownership has spooked thousands of Daewoo workers
and some are taking up arms to thwart a foreign bid. Fiat
SpA, Ford Motor and GM as well as Hyundai Motor remains in
the field of candidates for Daewoo Motor, a company that
could serve as a springboard in the growing Asian car
market for anyone that successfully courts it.

Jerome, who says he likes Korea to the point that his
children sleep on the Korean traditional mat rather than
western bed, made clear that what GM is seeking with Daewoo
is partnership, not takeover.

"What matters most is a good partnership that fits both GM
and Daewoo from a strategic point of view," he said. "Our
intention is to keep a Korean company and use it as part of
our global partnership strategy."

At least from the standpoint of critics, GM's ulterior
intention is to convert mere subassembly lines for its
models. Asked how plausible a GM consortium with, for
instance, Hyundai is in order to cushion the "antipathy"
shown in some sectors of society, he was skeptical, saying,
"It is hard to assess but we would have to say that we
would have a lot of problems with that kind of thing,"
citing accusations of a monopoly Hyundai would have through
a partnership with GM that would win Daewoo and the
questions over value it would bring about.

During a recent interview with a domestic wire service,
Allen Perriton, former head of GM Korea who is now
commanding GM's bid for Daewoo, said it is open to any form
of partnership, a statement dismissed by GM officials as
being taken out of context.  Jerome, however, warned of a
protracted bidding process that could hurt Daewoo Motor's
corporate value.

"We are worried about the health of Daewoo," he said. "The
longer the process takes, the more it would result in the
impairment of Daewoo's corporate value."

It is speculated that despite the intention of creditors to
get the Daewoo bidding over with by the end of the first
half this year, a year-end settlement would be hard to work
out.  The GM Korea head also revealed that there are at
least 10 GM people in Korea at any given time working on
the Daewoo deal and on a worldwide basis, 70 people are
involved.  (Korea Times  04-April-2000)

DAEWOO MOTORS: DaimlerChrysler still in the running
---------------------------------------------------
The Daewoo Group Corporate Restructuring Committee said
that DaimlerChrysler has not been found willing to quit the
international bidding for Daewoo Motor, dismissing earlier
press reports to that effect.

"DaimlerChrysler delivered its intent to carry on due
diligence on Daewoo Motor," said a committee official.

The German-U.S. automaker's unchanged stance immediately
raised speculation that it may eventually tie up with
Hyundai Motor to jointly take over Daewoo Motor. Daewoo
creditors are scheduled to select two companies from among
five bidders by June 30 for exclusive negotiations. (The
Korea Herald  05-April-2000)

HANA BANK: Borrows to pay down foreign debt
HOUSING-COMMERCIAL BANK: Borrows to pay down foreign debt
KOOKMIN BANK: Borrows to pay down foreign debt
---------------------------------------------------------
The level of commercial banks' foreign liabilities due this
year will be at least twice last year's total. According to
a source, local banks are liable for repayments of $18.4
billion including the early return of $3 billion in debt by
the end of this year, while the government is responsible
for $7 billion it signed as guarantees.

The $18.4 billion debt is a sharp increase compared to
liability figures posted by commercial banks in the last
two years. In 1998, the banks cleared $2.1 billion in debt,
followed by $8.7 billion in 2000.

After the currency crisis of late 1997, most Korean
commercial banks have gone on a borrowing spree in order to
improve their financial bases, resulting in a heavy
repayment burden.  This in turn resulted in a vicious
circle in which they are taking out new loans to pay back
their existing liabilities.

Hana Bank issued new debts totaling $650 million this year,
mainly to settle its existing loans.  Kookmin Bank, the
largest retail bank, also drew in additional foreign
capital worth $700 million in bonds in order to deal with
maturing liabilities.  Housing-Commercial Bank, which
specializes in the mortgage business, borrowed $350 million
from investors in Hong Kong.

"We are facing increased liquidity demands as our medium
term liabilities are maturing. Most of the repayments fall
in April and May," said a local banker. "Yet this will not
lead to more financial instability, as Korean banks now
have easy access to international financing." (Korea Times
04-April-2000)

SAMSUNG MOTORS: Renault talks collapse over debt
------------------------------------------------
Negotiations between French auto firm Renault and the
creditors of Samsung Motor for the sale of the troubled
Korean car firm ran aground Tuesday.

Hanvit Bank, the major creditor bank of Samsung Motor,
announced that day that the current third round of talks,
which centered on the final selling price, have been
discontinued, with both parties only able to agree that
they would return to the table in two weeks' time.

Samsung Motor's W290 billion debt to Samsung Corp. surfaced
during talks on Monday, disrupting negotiations. Samsung
Motor incurred the debt at the time of its establishment,
when it acquired the nation-wide business network and
after-sales centers of Samsung Corp through a bond
purchase.  As a result, the creditors' group of Samsung
Motor, Samsung Motor and Samsung Corp. plan to convene a
meeting April 6 to deal with the debt issue. (Digital
Chosun  04-April-2000)

SAMSUNG MOTORS: Sale delay until after general elections
--------------------------------------------------------
Sale of Samsung Motors to Renault will be delayed until
after the April 13 parliamentary elections, due to
differences over the automaker's newfound "contingent debt"
worth about 291.2 billion won ($260 million), industry
sources said.

Creditors for Samsung Motors and Renault held their third
stage of negotiations in Seoul yesterday, but failed to
narrow differences over how to settle the contingent debt
owed to the Samsung Group, said the sources.  In their
previous talks in Paris, the two parties had succeeded in
sharply reducing the pricing gap in the sale of Samsung
Motors, raising speculations that the sale price may be
settled at around 600 billion won.

Representatives from creditors, Samsung Group and Samsung
Motors, now put under court receivership after bankruptcy
last fall, will hold talks tomorrow to discuss ways to
solve the contingent debt problems.  In a relevant move,
creditors decided to extend the deadline originally set at
March 31 for the exclusive negotiations with Renault to
April 29.

"Creditors, after fine-tuning the contingent debt problems
with the Samsung Group, will resume talks with Renault in
Seoul shortly after the elections," said an executive at
Hanvit Bank, the main bank for Samsung Motors.

The hidden debt load came to light as Samsung Corp., a
flagship of the Samsung Group, recently asked the creditor
banks for an immediate repayment of the 291.2 billion won.
In its filing with the court, Samsung Corp. insisted that
Samsung Motors bought Samsung Corp.'s real estate assets
for use in the building of its after-sales and marketing
facilities in June of 1998, but has since failed to settle
the account, except for the initial contract deposit of 6
billion won.

Notably, the liabilities to Samsung Corp. are classified as
top priority "public debt," as the ownership of the
concerned real-estate assets has not been legally
transferred to Samsung Motors. In this regard, a civic
group in Pusan, the host city to Samsung Motors's sole
passenger car plant, issued a statement, urging the Samsung
Group to write off the contingent debt as losses. (The
Korea Herald  05-April-2000)


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

EKSONS CORP BHD: Switches focus after reverse takeover
------------------------------------------------------
Eksons Corp Bhd, formerly known as Chongai Corp Bhd, has
successfully completed its debt restructuring exercise, and
its core business now has switched to plywood production as
a result of a reverse takeover by Sarawak-based Rajang
Plywood Sawmill Sdn Bhd.

Shares in the restructured company are expected to resume
trading on the KLSE second board on April 12. They were
last traded at RM1.34 before their suspension on Feb 17.
Eksons' newly-appointed group managing director Hsin Tay
said that with the assistance of the Corporate Debt
Restructuring Committee (CDRC), the complicated
restructuring scheme involving a capital reduction, debt
waiver and debt-equity conversion had been carried out
smoothly in the months since February last year.

Eksons is the second company to have completed a debt
restructuring with the assistance of the CDRC. To better
reflect its new business focus, Tay said the restructured
company had assumed a new name and a new logo highlighting
its timber-based activities.

Rajang Plywood, incorporated in 1989, is involved in the
manufacture and trading of plywood, veneer and sawntimber.
It operates a factory in Sungai Dasan in Sibu, Sarawak.
The major shareholders of Rajang Plywood are Singaporean
Hsin Tay, Taiwanese Gau Maw Shyong and Malaysian company
Serira Sdn Bhd.

Speaking at a media briefing in Kuala Lumpur yesterday, Tay
said plywood manufacturing would be the main source of
income for the company, and was expected to contribute more
than 90% to total group earnings starting from its current
financial year to March 31, 2001.

Group general manager Win Ong said: "Better earnings are
expected for our current financial year. But given the
volatility of plywood prices we do not want to speculate on
the earnings figure."

He expects the plywood price to be above RM350 per cu m.
Rajang Plywood recorded a pre-tax profit of RM24.9mil on a
turnover of RM163mil for its last financial year to Dec 31,
1999.  The strong profit was credited to higher
productivity brought about by newly installed machinery and
improved plywood prices.

Tay said the new management's immediate plan for the future
was to expand the company's production capacity by setting
up three additional production lines in the current
financial year once a suitable location had been
identified.  The cost of the expansion is estimated at
between RM75mil and RM85mil.

"We foresee no problem in financing the investment as there
is zero gearing ratio (debt-free) on the company's balance
sheet," Tay said.

Almost 100% of the plywood produced by Rajang Plywood is
exported. China takes in some 80% of the exports. As for
the company's long-term plan, Tay said Eksons might venture
into the manufacture of fancy plywood because it offered
higher profit margin.

He said fancy plywood, which is a higher value-added
product, was in demand in Europe and the United States.
Rajang Plywood is now supplying top quality 3mm plywood to
China for fancy plywood production. Eksons also has plans
to venture into reforestation to ensure an adequate supply
of raw materials.

On the group's garment-making activity, Ong said Eksons had
no intention to dispose of it. He said the garment
manufacturing business had been revitalised and had
returned to the black. With the completion of the
restructuring scheme, Eksons' paid-up capital has increased
to RM164.2mil from RM20mil previously. Its authorised
capital is now at RM300mil compared with RM100mil formerly.

Tay said the subscription rate of more than 90% for the
non-renounceable restricted offer for sale of Eksons shares
made to shareholders reflected their strong confidence in
the new management team. (The Star  05-April-2000)

MCL CORP BHD: Revamps scheme gets court approval
------------------------------------------------
MCL Corp Bhd's proposed restructuring scheme has been
approved by the High Court, paving the way for its
delisting from the KLSE and the listing in its place of its
"white knight" Jerasia Capital Bhd (JCB).

"We are pleased with the High Court sanction as this leads
us closer to the completion of MCL's recovery. This scheme
was also approved by the KLSE, thus giving us the green
light to move ahead," MCL chief executive officer Tho Tuck
Woh said in a statement yesterday.  "The business synergy
of the two groups, i.e. MCL and Jerasia, will provide the
springboard for the new group JCB to scale greater
heights."

"We hope to bring the local MCL brands like Milani, Charlie
and Lady Like into the export market," he added. "At the
same time, JCB will be able to move into the local market
through MCL's domestic retail operation."

Unable to cope with its debt problems, MCL--a garment
manufacturer and retailer--had sought court protection
under Section 176 of the Companies Act.  MCL said its
court-approved scheme of restructuring would involve a
reduction of RM0.975 from every one MCL ordinary share of
RM1 and the consolidation of every 40 resultant MCL
ordinary shares of RM0.025 into one MCL ordinary share of
RM1 par value.

The High Court also approved the reduction of RM0.9999 from
every one MCL Brands Sdn Bhd ordinary share of RM1 and the
consolidation of every 10,000 resultant MCL Brands ordinary
share of RM0.0001 each into one MCL Brands ordinary share
of RM1.  Under the proposed restructuring scheme, MCL and
MCL Brands are to be absorbed by the Johor-based Jerasia
group which has more than 30 years experience in the
manufacture of ladies' apparel for export markets to the
US, Canada, the European Union and Australia.

JCB, which operates eight factories and has a staff of more
than 1,700, has projected a group pre-tax profit of RM15mil
on a turnover of RM200mil for its financial year ending Dec
31, 2000. Apart from its core business of exporting quality
fashion ladies' apparel under the Sag, Eddie Bauer, Kathie
Lee Collection, Jantzen, Bentley and Radcliffe labels,
group subsidiary Jerasia Fashion also runs the largest MNG
flagship store in Asia at the Mid Valley Megamall in which
it has invested RM6mil.  MNG is a Spanish fashion label
targeted at young urban women. (The Star  05-April-2000)


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

MONDRAGON INT'L PHIL.: Sees final-investor talks this month
-----------------------------------------------------------
Cash-strapped hotel and casino operator Mondragon
International Philippines, Inc. (MIPI) is expecting to
finalize talks with prospective investors within the month
to help subsidiary Mondragon Leisure and Resort Corp.
(MLRC) pay off its 5.93-billion Philippine pesos (PhP)
(US$144 million at PhP41.172:US$1) debt owed to creditor
banks and government agencies.

In a recent interview, MIPI chairman and chief executive
officer Antonio Gonzales told BusinessWorld discussions
with four to six foreign and local investors have
progressed to a more advanced stage and a deal is seen to
be completed within two to three weeks.

"We're talking to a lot of investors and we're close to
coming to a deal since two investors -- one local and the
other foreign -- have already conducted due diligence on
MLRC's casino operations," he said.

Mr. Gonzales said the company is in talks with foreign
gaming firms based in Hong Kong, the UK, and Australia as
well as a number of local firms that have expressed
interest to purchase MLRC's casino business.

He, however, denied market talks that MLRC has already
agreed with businessman Antonio "Tonyboy" Cojuangco who is
reportedly keen on investing in the beleaguered casino
firm.Mr. Cojuangco, along with presidential adviser on
Mindanao economic affairs Dee Ping Wee, is allegedly
planning to open a casino at the Fontana Leisure Parks
located across the 215-hectare Mimosa Leisure Estate in
Clarkfield, Pampanga.

Other investors also reported to be interested in Mimosa
include businessman Dante Tan of controversial gaming firm
BW Resources Corp.; presidential adviser on overseas
workers William Gatchalian; and an investment client of the
Bank of Commerce.MIPI said it expects to raise PhP6.7
billion ($163.0 million) from the sale of its 40% interest
in MLRC. The said amount will help MLRC settle its debts
with creditor banks. (Business World  06-April-2000)

NATIONAL POWER COPR.: Gov't may restructure Napocor loans
---------------------------------------------------------
The government is studying the possibility of restructuring
PhP250 billion (US$6.07 billion at PhP41.172:$1) in unpaid
loans of the National Power Corp. (Napocor) over a 25-year
period and paying it at a cost of PhP8 billion ($194.3
million) annually.

To shoulder the cost, the Estrada administration is eyeing
a 2.5% increase in foreign currency deposit unit (FCDU) tax
which is currently at 7.5%, Senate President Blas F. Ople
yesterday said.  The plan was among the issues discussed by
the Economic Coordinating Committee (ECC) during a meeting
in Malaca¤ang yesterday where officials agreed to scrap the
universal levy, Mr. Ople said.

Under the Napocor privatization bill now pending in both
Houses of Congress, the universal levy is supposed to be
added to the tolling charge to be collected monthly from
consumers.  A number of lawmakers have questioned the
propriety of penalizing the public for Napocor's
inefficiency.

The hike in FCDU tax -- which is imposed on interest earned
from dollar deposits -- was the brainchild of Senator Juan
Ponce Enrile, ways and means committee chairman.  Mr.
Enrile proposed the increase as early as the 10th Congress
during deliberations on the Comprehensive Tax Reform
Package Law.

"The sentiment expressed there in the ECC meeting was that
the consumers should not be further penalized with the
mistakes of previous administrations on power policies,"
Mr. Ople told reporters.  "Instead, future revenues should
answer for these stranded liabilities of the Napocor, such
as the FCDU tax hike."

The Senate president claimed the increase is expected to
generate PhP7 billion ($170 million) in yearly revenues,
enough to finance Napocor's outstanding liabilities after
its privatization.  But Senator John R. Osme¤a, finance and
energy committee chairman, told BusinessWorld the PhP7
billion is PhP1 billion ($24.28 million) short of the PhP8
billion cost under a restructured loan scheme.

The government may thus still have to impose the universal
levy, initially agreed at PhP0.20-0.25 ($0.0048-0.006) per
kilowatt-hour.

"The increase of FCDU tax is not going to be enough to meet
the servicing charge for assuming the yearly debt of about
PhP8 billion," Mr. Osme¤a said in an interview.

Mr. Osme¤a also said senators and congressmen could not
agree on whether to collect the levy from taxpayers in
general or from electric consumers only.  "The proposal in
the Senate is that it should be consumer borne because they
are the ones using the electricity," the solon pointed out.
Mr. Osme¤a said the issue would likely result in a "lively
debate that will not be settled immediately".

During recent debates on the Senate floor, Senator Miriam
Defensor Santiago questioned the propriety of imposing the
levy on the public.  "If they have been bad boys (Napocor),
why am I going to be spanked?," she asked. "Our nation
might be ignoring the forest -- meaning to say the welfare
of all consumers of electricity -- in favor of a single
tree, referring to the welfare of the Napocor."

Senate Bill (SB) 1942 seeks to create a trust that will
liquidate Napocor's stranded assets and liabilities.
Stranded assets and liabilities refer to properties that
remain undisposed and outstanding debts, respectively,
after the power firm's privatization.  Under the measure,
the Power Sector Stranded Assets and Liabilities
Liquidation Trust (PSSALLT) will be tasked to retire
Napocor's take-or-pay contracts with independent power
producers (IPPs).

In reply to Ms. Santiago's query, Mr. Osme¤a claimed it is
not the objective of the power restructuring program to
benefit Napocor. While addressing the power firm's
privatization, the government will have to face "mistakes
of the past," including Napocor's stranded liabilities.

"Since Napocor is a government-owned and -controlled
corporation, the mistakes of the Napocor are the mistakes
of the government and somebody has to pay for those
mistakes," he said.  "It is terribly difficult for us to
conceive of having the public -- either as a consumer or as
a taxpayer -- address or answer these costs. But that is
the reality in the long run," he added.

According to the proposed law, the trust fund, which will
automatically be dissolved after 15 years, will come from
Napocor's stranded assets as well as proceeds of its
privatization.  It will also be financed by the National
Government by way of subsidies, grants as well as savings
from other agencies to be transferred to it by the
President.

Funds will also come from proceeds of bonds floated to
retire power purchase contracts (PPCs), access fees
collected from operators of power plants other than those
that were purchased from Napocor in the process of
privatization, as well as official assistance, grants and
donations.

Under SB 1942, loan and bond obligations of Napocor related
to the construction of its power generation facilities will
be transferred to the trust within 90 days from the
approval of the law.  Notwithstanding the transfer, these
obligations will continue to carry the full guarantee of
the National Government. (Business World  06-April-2000)

PHILIPPINE NAT.BANK: Sale with Tan to raise $700M for Gov't
-----------------------------------------------------------
The National Government expects to generate as much as $700
million (or around P28.7 billion) from the joint sale of
76% of semiprivate Philippine National Bank (PNB), Finance
Secretary Jose T. Pardo yesterday said.

Emerging from the Economic Coordinating Council (ECC)
meeting in Malaca¤ang yesterday afternoon, Mr. Pardo said
this was the emerging scenario as the government is
inclined to accept the "option" of selling its 30% stake
together with Chinese-Filipino businessman Lucio Tan.
The tycoon, who is also PNB's biggest shareholder, the
other night told the Department of Finance (DoF) in a
letter that he plans to unload his "and his friends" 46%
stake in a joint sale with the government, Mr. Pardo said
in a separate interview.

Reading out excerpts of Mr. Tan's letter, Finance
Undersecretary Cornelio C. Gison said, "(Mr Tan) has
committed to sell not only his shares but (those of) any
other stockholders willing to join him for 46%, so they
(will) sell jointly with government."

This, however, was only one "option" Mr. Tan gave the
government. Another was to rescind a loan agreement with
the PNB Retirement Fund, Inc. involving 10.59% of the total
stake he allegedly owns "on or before May 15", Mr. Pardo
said.

This meant the Fund has to return the 3.3 billion
Philippine pesos (PhP) (US$80.15 million at
PhP41.172:US$1)it owed Mr. Tan for the PNB shares. In turn,
the government will have to purchase the PNB shares which
it had earlier passed up due to lack of funds. Mr. Pardo
told Malaca¤ang reporters that rescinding the sale would
mean the government has an option to buy back Mr. Tan's
shares if the planned block sale does not push through. He
said Mr. Tan has given the government seven days to respond
to his offer.

The Chinese-Filipino businessman owns -- both directly and
indirectly -- 46% of PNB, 10.59% of which was acquired
through the retirement fund of PNB employees. The Fund
bought the PNB shares that the National Government passed
up last September, funded by a PhP3.3-billion loan from Mr.
Tan.

But in his letter to the DoF, Mr. Tan did not admit that he
directly funded the retirement fund's purchase of PNB
shares. He claimed the PNB shares have been pledged by the
Retirement Fund to the "corporation" which lent money for
the purchase. Mr. Tan also did not admit that the
corporation was, in fact, a "dummy firm" he set up only for
the purpose.

In Malaca¤ang, Mr. Pardo said Mr. Tan's shares reached 46%
since he was able to "convince" his "friends" to also sell
their holdings.  Mr. Pardo said the President has already
given him "full powers to proceed with haste on the sale".
This became more urgent as three foreign groups have
already expressed interest to acquire the PNB shares, he
added.

Mr. Pardo said this would put an end to speculations Mr.
Tan acquired his shares due to his close ties with
President Estrada.

"He has been criticized for acquiring the PNB shares so he
is prepared to rescind the sale. In other words, he's
bending backwards," he said.

In agreeing to the block sale, Mr. Tan will not even get a
windfall when he unloads his PNB shares, Mr. Pardo said.

"He bought it at PhP140 (per share). His holding cost to
date is PhP158. We have the documents, we've shared it with
teams from the IMF who are in town," Mr. Pardo added.

Mr. Pardo also implied Mr. Tan's decision was a form of a
sacrifice since the move may not be financially sound.
On the other hand, the source privy to the privatization
deal said Mr. Tan is actually emerging as the "biggest
loser" in the deal since his purchase of PNB shares was
"grossly overpriced" in the first place.

"(Mr. Tan) bought his shares from the government at
PhP137.80 apiece, not including the price he paid for the
put and call option," the source said. "What he didn't know
was that there already were emerging indications from the
audit being conducted (by PriceWaterhouseCoopers) that the
bank's book value had dropped to as low as PhP90 per share
(as of end-1998)," the source added.

The source said Mr. Tan was "not properly informed" of the
decline in the bank's book value at the time he bought the
shares in September last year.  "He had no idea it is this
bad," the source added. "That's why he is only too eager to
sell with the government."

Mr. Gison, meanwhile, said the DoF is not inclined to draft
a memorandum of agreement that will "formalize" the
agreement with Mr. Tan.  "At this stage, there is none.
It's not in our mind but we have to agree on pricing how
(do) we proceed with the sale," he said.

Mr. Gison added the government and Mr. Tan have yet to
agree on the selling price of PNB, saying the " PhP160
figure (pegged earlier) could go higher or lower."
This was echoed by Mr. Pardo. "The approval that Lucio Tan
gave did not specify any amount but that (PhP160 per share)
was an indicative figure but we still have to sort out. We
have to formally accept the offer he gave in seven days,"
he told Palace reporters.

The DoF is under pressure to complete the privatization of
PNB by June to fulfil commitments with the World Bank and
the International Monetary Fund. (Business World  06-April-
2000)

RURAL BANK OF SAN MIGUEL: Loses appeal on receivership
------------------------------------------------------
The Court of Appeals (CA) has upheld the government's order
placing cash-strapped Rural Bank of San Miguel (RBSM) under
receivership.

In a March 28 decision, the appellate court lifted the
restraining order it issued on Feb. 9 barring the placement
of the beleaguered bank under the close supervision of the
Philippine Deposit Insurance Corp. (PDIC).  The CA's 13th
division said the Monetary Board (MB), the policy-setting
body of the Bangko Sentral (Central Bank of the
Philippines), did not err when it stopped RBSM from
continuing operations.

The CA agreed with the MB that the bank, which has been
unable to pay its debts since October, cannot continue
business without entailing more losses to creditors and
depositors.

"With the unrebutted findings on the financial affairs and
the unsound practices of RBSM, respondents' vigilance to
protect the depositors, creditors, stockholders and the
bank itself, by placing RBSM under receivership, cannot be
faulted," said the Court, through Associate Justice Eugenio
S. Labitoria. Associate Justices Bernardo P. Abesamis and
Elvi John S. Asuncion concurred in the 18-page decision.

RBSM majority stockholder Hilario P. Soriano filed the case
against the central bank, the MB and the PDIC, claiming
abuse of power and undue process when the bank was closed.

"The petitioners failed to present relevant evidence to
show that they have a clear and legal right to the
injunctive relief and would suffer irreparable damage if
the same is not issued. Mere allegations in the absence of
any support in the record does not meet the standard of
proof that would warrant the issuance of the injunctive
writ," said the Court.

The Court said the MB's ruling was only based on the
findings of the financial report RBSM itself presented.
The Court said MB's decision is far from "capricious,
whimsical, arbitrary or despotic," as Mr. Soriano had
alleged. It added the Supreme Court has already ruled in
the 1998 case, involving the Rural Bank of Buhi, Inc., that
the MB can validly appoint a bank receiver without
conducting a hearing.

"There is no requirement whether expressed or implied that
a hearing be first conducted before a banking institution
may be placed under receivership," the Court said, quoting
the High Tribunal. Mr. Soriano has 15 days to appeal the
decision.

Meanwhile, the Bangko Sentral yesterday said it had filed
fresh criminal charges against several officers of the
Bulacan-based rural bank.  Charged before the Department of
Justice for estafa through falsification of commercial
documents were RBSM president Mr. Soriano, San Miguel
branch manager Rosalinda Ilagan, area 1 manager Perfecto
Aguinaldo, office of the president senior manager Marcos
Perez, Jr. and treasury department head Ma. Socorro
Bartolome.

Mr. Soriano was also charged for violating section 83 of
the General Banking Act of 1948 which specifies prudential
limits on loans to directors, officers, shareholders, and
related interests (DOSRI).

The Manila Regional Trial Court has yet to rule on the two
earlier estafa cases the Justice department filed against
Mr. Soriano. (Business World  06-April-2000)


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

NAKORNTHAI STRIP MILL: Explains delisting situation to SET
----------------------------------------------------------
The Stock Exchange of Thailand (SET) has rendered a letter
dated March 7, 2000 informing that the securities of
Nakornthai Strip Mill Public Company Limited (the Company)
listed on the SET is under the possibilities of being
delisted and requesting the Company to clarify the method
to rectify the causes of such delisting.

The Company, through Mr. Sawasdi Horrungruang, Chairman,
would like to clarify that the Company will rectify the
causes of delisting by means of reorganization under the
Bankruptcy Act pursuant to the plan of debt restructuring
approved by the meeting of financial creditors at the Bank
of Thailand on February 18, 2000.

The Company anticipates to file the request of
reorganization to the Bankruptcy Court by April 18, 2000,
and prepare a reorganization plan in accordance with the
approved plan of debt restructuring pursuant to the
Bankruptcy Act for submission to the Companys creditors and
the Bankruptcy Court for consideration by October 31, 2000.

The Company would like to additionally explain that
reorganization under the Bankruptcy Act is the best method
to rectify the causes of such delisting and most benefits
the Company. This method is also in accordance with the
plan of debt restructuring approved by the financial
creditors.  (Stock Exchange of Thailand  05-April-2000)

ROBINSONS DEPT.STORE : Shareholders back debt-swap plan
-------------------------------------------------------
Creditors of Robinson Department Store Plc will take a 90-
per-cent stake in the company following a debt-to-equity
conversion plan was included in the US$459-million
(Bt17.44-billion) debt-restructuring plan approved by its
shareholders yesterday, a banking source said.

According to the plan, Robinson will conduct a
recapitalisation plan whereby the creditors subscribe to
new shares issued through the conversion into equity
holdings of the loans they have extended, the source said.
Existing shareholders will see their stake in Robinson
heavily diluted after recapitalisation and the debt-to-
equity conversion by the creditors.

However, the creditors have agreed to a proposal that the
Central Group take a 30-per-cent stake in Robinson if it
agrees to manage the company. Without the propsal, Central,
Thailand's largest department-store operator, would see its
stake in Robinson drop from 54 per cent at present to 5 per
cent.

Central's continual support was seen as crucial for the
rehabilitation of Robinson. The company's debt-
restructuring proposal will be submitted to the business-
rehabilitation court this week, Kanok Wongtrangan,
Robinson's president and chief operation officer, said.

According to the proposal, Robinson Planner Ltd, comprising
three Robinson representatives and three representatives of
the creditors, will be set up to administer and finalise
the rehabilitation plan.  Of the total $495-million debt,
90 per cent was in foreign-currency loans, including euro
convertible debentures and floating-rate notes.

Kanok said Central would continue its support of Robinson
and would not be delisted from the local stock exchange. He
said that the most important criteria was for Robinson to
differentiate its marketing strategies in order to attract
more customers. (The Nation  05-April-2000)

SAMMITR MOTORS: Bangkok Bank restructures loans
-----------------------------------------------
Bangkok Bank yesterday signed a contract with Sammitr Motor
Group to restructure combined loans of Bt2.5 billion, the
bank said.

The agreement comes after more than a year of planning and
cooperation between Sammitr and 16 creditors, including
Bangkok Bank, Thai Farmers' Bank, Bank Thai, Chanthaburi
Asset Management, Asia Recovery 2 Fund, Thai Strategic
Asset Fund, AIG Finance (Thailand), The Siam Industrial
Credit Plc, Standard Chartered Nakornthon Bank, Financial
Institutions Development Fund, Thai Military Bank and SG
Asia Credit.

The bank has also provided Sammitr with a Bt400-million
line of credit with a repayment period of 10 years and
interest at the minimum lending rate. (The Nation  05-
April-2000)

THAI MILITARY BANK: Unveils plans to raise 40B baht
---------------------------------------------------
Thai Military Bank announced plans yesterday to raise 40
billion baht (S$1.8 billion) under a government scheme to
help institutions crushed by bad debt.

The plan, which still needs shareholder and government
approval, calls on the finance ministry to support the
capital raising through subscribing to 2.5 billion new
shares.  If the government buys the shares at the 10 baht
par value, it would inject 25 billion baht into the ailing
bank.

Unlike larger banks, Thai Military has not been able to
raise adequate capital in the private arena to help it deal
with huge bad loans, forcing it to ask for government help.
Thai Military will become only the second Thai bank to sell
shares to the government in a bid to survive the Asian
crisis, following Siam Commercial Bank.  Other large
institutions, such as Thai Farmers Bank, preferred to sell
to the public than give up a degree of control to the
state.

Under the government programme, which began in mid-1998 at
the height of the crisis, banks qualify for funds from the
government equal to the amount they can raise from the
market.  Thai Military said yesterday it also plans to
issue 1.5 billion preferred and ordinary shares to
investors at 10 baht each, which would raise 15 billion
baht. The bank was able to raise 10 billion baht through
selling equity-backed bonds last year.

The bank's stock jumped 4.7 per cent to 11.25 baht on the
news yesterday. The new share issue will help the bank
speed up efforts to restructure problem loans, which stood
at one-third of lending at the end of last year, analysts
said.

"If they can increase the capital by 40 billion, it's very
positive," Kavee Chukitkasem, a bank analyst at Capital
Nomura Securities, told Dow Jones Newswires.

But Thai Military still needs to be get investors to
subscribe to the 1.5 billion new shares for the plan to be
a success, the analyst said.  Free warrants which are
attached to the new shares might attract investors. The
warrants give investors the right to buy the Finance
Ministry's preferred stock in the future, allowing the
government to recoup its investment.

Thai Military called off an original plan to raise capital
under the state programme in October, citing poor market
conditions.  Stock market conditions have barely improved
since then, but the bank may have dropped its desire to
sell shares above par value as the need to raise capital
becomes more urgent, analysts said.

Under central bank regulations, Thai Military needs to set
full provisions against problem loans by the end of this
year. As of the end of last year, the bank said it needed a
further 12 billion baht in capital to meet these
requirements, although analysts say this is optimistic.
Given possible losses of up to half on some loans, the bank
could need 34 billion baht in extra provisions, Seamico
Securities said in a recent report. (Business Times  05-
April-2000)

THAI MILITARY BANK : Charoen eyes TMB stake
-------------------------------------------
Liquor tycoon Charoen Sirivadhanabhakdi is planning to
return to the Thai banking industry by investing up to
Bt1.5 billion in Thai Military Bank's (TMB) planned Bt40-
billion recapitalisation.

Charoen would be one of four investors that would each take
a stake of about three per cent in the bank, its president
Thanong Bidaya said yesterday.  The bank yesterday
announced a plan to raise Bt40 billion by issuing three
billion preferred shares and one billion ordinary shares,
all with a par value of Bt10. The plan would need the
approval of shareholders and the Finance Ministry.

Charoen was not available for comment. He once held almost
50 per cent of the now-defunct First Bangkok City Bank, but
was hit badly by the financial meltdown two-and-a-half
years ago.  Along with Charoen, three other investors -
telecom tycoon Thaksin Shinawatra, National Finance Plc and
Thai Life Assurance - would invest up to 1.5 billion each
in the bank, Thanong said.

The four groups would invest in the bank before May 19, he
said. The Thai army would remain the bank's major
shareholder following the planned recapitalisation, he
added.  Under the recapitalisation plan, the bank would
issue one billion ordinary shares to investors at Bt10
each. The shares would be sold to existing shareholders and
through private placement, it told the Stock Exchange of
Thailand.

The bank also plans to issue three billion preferred
shares. Two billion preferred shares worth Bt20 billion
will be sold to the Finance Ministry as part of the state's
financial supporting plan to help ailing banks, a source
said.  The sale of the remaining one billion preferred
shares would be put on hold until price details are worked
out, but half of them would be sold through private
placement while the other half would be offered to the
government, the source said.

Of the one billion ordinary shares, the bank will sell 305
million shares in a rights issue at Bt10 each, raising
Bt3.05 billion. Existing shareholders would be able to buy
three new shares for every 10 shares they hold. National
Finance, which will underwrite the issue, will buy the
unsold shares, a source at the company said.

The bank has reserved 695 million ordinary shares for a
private placement, which it will sell with the preferred
shares in May.  Subscribers to all new shares will be
entitled to warrants, giving them the right to buy the
Finance Ministry's preferred shares in the future, the bank
said. The source said all subscribers will be able to
receive two warrants for each new share.

This will ensure the ministry, which will pay for its
preferred shares in non-tradable government bonds, is able
to recoup its investment.

"I don't think investors will be interested to buy without
the free warrants," an analyst told AP-Dow Jones.
The private placement will be sold to the four investor
groups and they will also be eligible to receive two
warrants for each new share, the source said.

This fund-raising plan would be more than enough for the
bank to enter the government's recapitalisation assistance
programme as it has already raised Bt9.96 billion through
selling hybrid securities to investors.  Under the
programme, banks qualify for funds from the government
equal to the amount they can raise from the public.

The recapitalisation plan would be successful because so
far the bank has received an overwhelming response for the
share issue, the source said. By raising a total of Bt40
billion, the bank will be able to set full provisions
against its huge problem loans, analysts said.

Meeting the central bank's full loan-loss reserve
requirements is a condition for entering the government
recapitalisation programme.  The recapitalisation plan will
be fully completed in May, the source said. The bank needs
only Bt13 billion to meet its full provisioning
requirements, while another Bt17 billion will help raise
its tier-1 capital from 6.33 per cent to 12-13 per cent, he
said.

If the plan is successful, TMB's capital adequacy ratio
under Bank for International Settlement will rise to 16 per
cent, well above the minimum requirement of 8.5 per cent,
he said.  Soon after TMB's recapitalisation news hit the
market, investors gave a positive response to the
announcement and TMB's share price rose 4.7 per cent to
close at Bt11.25. (The Nation  05-April-2000)


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