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

                          A S I A   P A C I F I C

             Monday, April 10, 2000, Vol. 3, No. 70

                                 Headlines


* A U S T R A L I A *

AYWON INT'L: Sold off to Islingwood
BOND CORP.: Memory loss for Bond on sale of assets
FORESTECH LTD: Creditors approve debt extension
HANDY & HARMAN REFINING GROUP: To close after fraud charges
NORMANDY MINING LTD: Tabbed with negative outlook


* C H I N A  &  H O N G  K O N G *

ASSOCIATED BULK CARRIERS: Parent to offload lossmaker
DALIAN INT'L TRUST & INVEST.: Creditors accept settlement
PRIME HILL TECHNOLOGY: Asia Aluminum buys 65% stake
TAK WING INVESTMENT: Enters into number of deals
ZHENGZHOU BAIWEN GROUP: CINDA files bankruptcy against


* I N D O N E S I A *

PT ALTER ABADI TBK: Delisting conditions given
PT BDNI CAPITAL TBK: Delisting conditions given
PT HOTEL PRAPATAN TBK: Delisting conditions given
PT JAKARTA KYOEI STEEL: Delisting conditions given
PT KERAMIKA INDONESIA ASOSIASI: Delisting conditions given
PT PELANGI INDAH CANINDO: Delisting conditions given


* J A P A N *

ISUZU MOTORS: Hit by accounting changes
JALECO LTD.: To see 3rd straight year of pretax loss
NIPPON KOSHUHA: Kobe Steel to make it subsidiary
NIPPON MITSUBISHI OIL CORP.: Gets 100B Yen commitment line
SOFTBANK CORP.: Shares drop on earnings,cash flow concerns
SOFTBANK CORP.: Group net profit falls 91%
SOGO CO.: Not all creditors able to forgive debt
SOGO CO.: FRC to prohibit Nippon Credit from waiving debt
TAIHO INDUSTRIES CO.: Takes 5.5B Yen loss on sale of unit
TOBISHIMA CORP.: Eyes capital reduction to make up loss


* K O R E A *

DAEWOO GROUP: Domestic creds. want larger collateral share
DAEWOO MOTORS: Strike might dampen foreign fervor
DONG AH CONSTRUCTION: Debts are restructured
HANDUK LIFE INSURANCE: SK Group set to acquire it
SAMSUNG MOTORS: Creditors, company disagree on debt
SAMSUNG MOTORS: To let court decide differences


* M A L A Y S I A *

LEADER UNIVERSAL HLDGS.: Posts annual loss
TIME ENGINEERING BHD: SingTel buys stakes in Time units


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

MONDRAGON INT'L PHIL.: Expects to finalize investor talks
PHILIPPINE AIRLINES : L.Tan willing to sell PAL
PHILIPPINE NAT.BANK: L.Tan wants to sell stake by May 15


* T H A I L A N D *

BANCHANG GROUP: To undergo debt restructuring
BANK OF THAILAND: Restructures Bt751B in debt
PRASIT COURT: To undergo debt restructuring
PREMIER PRODUCTS: To undergo debt restructuring
ROBINSON'S DEPT.STORE: To undergo debt restructuring
ROBINSON'S DEPT.STORE: Court accepts rehab petition
THAI PETROCHEM.INDUS.: No response from Prachai
THAI TEL.AND TEL.: Files plan with court


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

AYWON INT'L: Sold off to Islingwood
-----------------------------------
The manufacturing arm of the failed Australian Sportsgirl
Sportscraft Group (SSG) has been sold to Islingwood Pty
Ltd, the group's joint voluntary administrators John Spark
and James Stewart of insolvency group Ferrier Hodgson
said.

Up to 80 of Aywon International's 190 employees would be
retrenched, and would receive all entitlements in full, Mr
Spark said. Aywon International includes the Crestknit,
Carolyn Taylor, Aywon and Robert Burton brands, as well as
a private label group that designs and produces clothes for
Rivers, Myer Direct, David Jones and other retailers.

The sale follows yesterday's announcement that Sportsgirl
New Zealand would be closed, after agreement could not be
reached on a possible sale of the business. Creditors of
SSG are scheduled to meet on April 26, after adjourning a
second creditors' meeting on February 22 to allow the
voluntary administrators more time to investigate the
failure of the fashion retailer.

Creditors are also waiting for SSG's owners, South African
company Truworths International, to consider a deed of
company arrangement. The administrators have said that
creditors could expect between 12 and 23 cents in the
dollar if SSG is liquidated, but an improved dividend was
possible if Truworths proposed a deed of arrangement.

A report to creditors by Ferrier Hodgson has revealed poor
accounting and operating practices at SSG led to
extraordinary post-balance date adjustments and a total
loss of $ A12.5 ($ US7.54) million for the 1998-99
financial year.  (Asia Pulse  06-April-2000)

BOND CORP.: Memory loss for Bond on sale of assets
--------------------------------------------------
Disgraced tycoon Alan Bond has confirmed that a Swiss
business associate, Jurg Bollag, sold Bond Corporation
assets during its collapse in the early 1990s.

But Bond has denied that Mr Bollag kept the proceeds of the
asset sales including valuable paintings on his behalf in
bank accounts in Switzerland, or sent the money to
Australia.  Bond told a secret examination in the Supreme
Court of South Australia in November, 1997, that he was in
contact with Mr Bollag, a "close business associate",
during his well-publicised bankruptcy following the
collapse of Bond Corporation in 1993.

However, in a transcript only recently made publicly
available, he told Master Peter Bowen Pain that he could
not remember the details of what they discussed, except
that it involved paintings which had been owned by Bond
Corporation.

"It is some years now since I have had any discussion at
all with him, but I can't tell you when it (their contact)
actually ceased, but it has been some years now since I've
had any contact with him," he said.  "I think the last time
was, I think, during the bankruptcy, but I'm not certain on
that."

Bond was being questioned by lawyers acting for an Adelaide
liquidator, Richard England, who has spent the past three
years investigating how Bond Corporation artworks,
including a $3.5 million portrait of Captain Cook, were
sent from Perth to Britain in January, 1990.

Mr England has launched a $13 million civil claim against
Bond and his two sons, Craig and John, alleging the
paintings were exported by a Perth art dealer, George Way,
and sold by Mr Bollag through a London art dealer, Lady
Angela Nevill, in a "sham" transaction designed to
"defraud" the Bond Corporation.

Bond, who began his evidence by saying he was suffering
from serious memory loss caused by illness and depression,
told Master Bowen Pain that while he was not personally
involved in the deal with Mr Way, he authorised a $1
million loan to Craig so he could lend the money to Mr Way
to buy the paintings. Bond said he could not remember any
further details about how two senior Bond Corporation
executives, Peter Beckwith and Michael Cross, went on to
sell 14 artworks to Mr Way for $922,500 but he did recall
that some of the paintings ended up with Mr Bollag who sold
some of them for $3.95 million.

Asked how Mr Bollag could come to control and receive the
proceeds from the sale of Bond Corporation assets, Bond
said: "Bollag knew the company very well and knew Peter
Beckwith, knew all the people in Bond Corporation, had done
a lot of work for them over the years with financing and so
on, so he had a good knowledge, they knew he could do
things perhaps other people couldn't do."

Asked by Mr England's lawyer, Dick Whitington, QC, if it
was true Mr Bollag was "intimately involved" in his
personal affairs during the late 1980s, Bond said: "I can't
recall him being intimately involved."

"But he was involved in your personal affairs at that time?

"He was involved in affairs of Dallhold (the Bond family
company) and Bond Corporation, but I can't tell you what
now."

Bond said he did not know how the Bond Corporation
artworks, which included paintings and sculptures, had gone
to Mr Way, who then shipped them to Lady Nevill's London
gallery, Nevill Keating Pictures.  He did remember having a
conversation with Mr Bollag in 1990 about how he had
obtained some of the artworks from Mr Way, but could not
remember the details of the discussion or the circumstances
of the transaction.

Neither could he remember whether Mr Bollag had told him
what prices the artworks had been sold for or who had
bought them.  "I can't remember the conversation," Bond
said. "I just remember him saying he had acquired some
paintings, that's all."

Asked if Mr Bollag had sold paintings on his behalf and
kept the proceeds for him, Bond said: "No."

Asked by Mr Whitington if Mr Bollag had sent any money to
him since his bankruptcy was annulled in 1995, Bond said:
"I am not aware of it at all."

"You say that you're not aware of (it). Does that mean he
might be indirectly?

"No, it doesn't. I'm not aware of anything."

Bond had been flown to Adelaide for the hearing from the
Karnet Prison Farm, near Perth, where he was serving a
prison sentence for fraud involving another painting owned
by the Bond Corporation, La Promenade. (The Advertiser  07-
April-2000)

FORESTECH LTD: Creditors approve debt extension
-----------------------------------------------
The Directors of Forestech Limited, through M D Hutchison,
company secretary, has reported to the Australia Stock
Exchange that as a result of a Creditors Meeting held the
morning of April 7, it was unanimously resolved that the
date by which the Company must meet the terms of the
proposal in its Deed of Company Arrangement was extended by
six months to 8 October 2000. (Australia Stock Exchange
07-April-2000)

HANDY & HARMAN REFINING GROUP: To close after fraud charges
-----------------------------------------------------------
The precious-metals company planning to close its plant
here after fraud charges were filed against several
executives is Handy & Harman Refining Group Inc., a
subsidiary of Golden West Refining Corp. of Perth,
Australia. New York-based Handy & Harman sold the refining
operation to Golden West in 1996. (AP  07-April-2000)

NORMANDY MINING LTD: Tabbed with negative outlook
-------------------------------------------------
Standard & Poor's said it affirmed Normandy Mining Ltd's
BBB- corporate rating, and its decision to place Great
Central Mines (GCM) Ltd's BB corporate credit rating on
Credit Watch, with positive implications.  The outlook for
Normandy Mining remains negative, it said in a copy of
a statement obtained here.

The ratings follow the announcement Normandy has acquired
the remaining 42 pct stake in GCM for a net cash outlay of
21 mln aud.  The rating on Normandy reflects a diverse
portfolio of gold mining operations located in Australia
and offshore, offset by a moderately aggressive financial
profile, it said.

SP said the GCM acquisition increases Normandy's
consolidated debt obligation by 499 mln aud, adding it has
treated this additional debt as a Normandy obligation.
Cash flow protection measures are weak for the rating and
depend on the support provided by Normandy's gold hedge
book, it said.

The Credit Watch placement of GCM will be resolved after
S&P determines the specific support mechanisms, if any, to
be provided by Normandy to GCM's creditors, as well as the
operational and administrative synergies expected from
100 pct ownership, it said.  (AFX News Limited  06-April-
2000)


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

ASSOCIATED BULK CARRIERS: Parent to offload lossmaker
-----------------------------------------------------
Shougang Concord International Enterprises is to offload
its 25 per cent stake in a loss-making bulk-carrier company
to reduce its exposure to the competitive bulk shipping
business.

The red-chip metal trading and shipping arm of Shougang
Holding (Hong Kong) said yesterday it would incur an
unaudited loss of about HK$152.7 million from selling its
stake in Associated Bulk Carriers for just US$2.
Shougang Concord International would be absolved from the
liabilities of the bulk carrier after the sale, said the
company.

The buyer, Peninsular and Oriental Steam Navigation (P&O),
will boost its stake in Associated Bulk Carriers to 100 per
cent through the purchase.  Shougang Concord International
said the deal would reduce its exposure to the bulk
business and cut its losses.

Associated Bulk Carriers posted a net loss of about
US$27.64 million for the year to December 31, 1998 and a
net loss of about US$34.37 million for the six months to
June 30 last year. The bulk carrier's net asset value was
about US$129.91 million at the end of last year.

Associated Bulk Carriers, a joint venture established in
1998, was 25 per cent owned by Shougang Concord
International, 25 per cent by Shougang Holding (Hong Kong)
and 50 per cent by P&O. (April 8, 2000  )

DALIAN INT'L TRUST & INVEST.: Creditors accept settlement
---------------------------------------------------------
A majority of creditors have accepted a proposal from
Dalian International Trust & Investment Co. that they
forgive a portion of the loans owed to them.

A cash offer made by Dalian on March 31, sought the
purchase of the creditors' loans at 60% of their principal
amounts, with cash settlement within three months after
signing the loan-purchase agreement, CLSA Hong Kong said
Wednesday.

A memorandum of understanding is expected to be signed
shortly with each creditor that has accepted the offer. As
reported last week, lenders had been owed US$150 million.

The Dalian case is one of many defaults that followed the
sudden liquidation of giant Guangdong International Trust &
Investment Co. in January 1999 and saw lending to China dry
up in response. Other bank creditors are still awaiting
resolution of their claims on Guangdong International Trust
& Investment as well as its Hong Kong subsidiaries,
including Guangdong Enterprises (Holdings) Ltd., which owes
lenders US$4.5 billion. (The Asian Wall Street Journal  06-
April-2000)

PRIME HILL TECHNOLOGY: Asia Aluminum buys 65% stake
---------------------------------------------------
Asia Aluminum Holdings has agreed to pay HK$455 million for
a 65 per cent stake in a loss-making technology company.

The stake in Prime Hill Technology includes a 28 per cent
holding belonging to Asia Aluminum chairman Kwong Wui-chun.
Prime Hill is engaged in developing environmental
protection-related technology.

The price will be partly settled by cash payments of
HK$188.5 million, and partly by an issue of 94.5 million
Asia Aluminum shares at HK$2.82 each, an 8.46 per cent
premium to yesterday's closing price of HK$2.60. After the
transaction, Mr Kwong's holding in Asia Aluminum, which is
planning to change its name to Global Applied Technologies
Holdings, will rise to 47 per cent from 46.1 per cent.

The price to be paid for the Prime Hill stake represents a
high valuation of HK$700 million for the company, which has
been established for less than three years. It had run up a
loss of HK$645,519 as of February 29.  Mr Kwong yesterday
defended the price, saying Prime Hill would generate a net
profit of HK$100 million between March 1 and June 30, 2001,
despite its loss-making track record.

"The firm is already receiving orders from most of the
leading vehicle manufacturers in the mainland," he said.

Mr Kwong declined to disclose which manufacturers had
placed orders.  According to the company's stock market
announcement, the purchase price can be adjusted downwards
if the net profit is less than HK$100 million.  Asia
Aluminum vice-chairman Michael Tse declined to say how much
cash reserves Asia Aluminum would have left after the
purchase. (South China Morning Post  07-April-2000)

TAK WING INVESTMENT: Enters into number of deals
------------------------------------------------
Tak Wing Construction (Holdings) Limited, a wholly owned
subsidiary of Tak Wing Investment (Holdings) Limited, has
entered into an agreement with Brilliant Ventures Holdings
Limited, a company wholly-owned by Dr. Chung Chun Keung, on
5 April 2000 in respect of the sale by Tak Wing
Construction (Holdings) Limited to Brilliant Ventures
Holdings Limited of the entire issued share capital of Tak
2Wing Engineering (China) Limited for a price of
HK$1,125,000 and the release by the Company of
HK$501,678.11 of indebtedness owing by Tak Wing Engineering
(China) Limited to the Company. Completion of the
TWECL Disposal occurred on 5 April 2000.

Upon completion of the TWECL Disposal and other
transactions hereinafter mentioned, each of Dr. Chung and
Ms. Tam Pui Ching, Celine, Ms. Fung Kit Lin, Stella and Ms.
Ha Pui Hing, Susanna resigned from all offices held in the
Group. Each of the directors referred to above has been
employed by the Group in a senior position for over 5 years
and, as compensation for the immediate termination of their
employment under existing contracts of employment and by
way of pension for their past services, the Company has
paid to them an aggregate amount of HK$2,820,000.

The Company has entered into an agreement with Pearl-City
Success Limited, a company wholly-owned by Dr. Chung, on 5
April 2000 in respect of the transfer by the Company and/or
its subsidiaries to Pearl-City Success Limited of all
marks, logos, trade marks, service marks, domain names and
business names relating to the names `Tak Wing', `Wan Hin'
and `Funing.' Having regard to an independent valuation of
the IP at nil and having regard to the intention of the
Company to change its name, the IP will be transferred for
a nominal consideration of HK$1.00.

Completion of the IP Transfer is required to occur as soon
as reasonably practicable. In addition, under the IP
Agreement, subject to any necessary shareholder and
regulatory approvals, the Company is required to procure,
as soon as reasonably practicable, a change in name of each
member of the Group, including the Company, whose name
includes the words Tak Wing,' `Wan Hin' or `Funing.'

The Company has entered into an agreement on 5 April 2000
under which Dr. Chung will, for a period of 7 years,
provide consultancy services to the Company in return for a
fee of HK$2,376,000 payable to Dr. Chung on commencement
and thereafter for a nominal fee of HK$1 per annum and on
the basis that Dr. Chung will be permitted during such
period to enjoy the benefits of debentures held by the
Company in relation to Kowloon Tong Club and The Hong Kong
Country Club.

The arrangements related to the resignations of the
Outgoing Directors also include (1) the purchase from the
Group by Funing Property Management Limited, a company in
which Dr. Chung has a substantial shareholding, of a car at
a market price of HK$175,000 and (2) mutual releases (to
the extent lawfully permitted) of all claims which the
Group or the Outgoing Directors might otherwise have
had against any of the Outgoing Directors or the Group
respectively in respect of the Outgoing Directors' service
with the Group. (Hong Kong Stock Exchange  07-April-2000)

ZHENGZHOU BAIWEN GROUP: CINDA files bankruptcy against
------------------------------------------------------
China Cinda Asset Management's decision to file a
bankruptcy petition against Shanghai-listed Zhengzhou
Baiwen Group has shattered illusions about the
effectiveness of Beijing's plan to write-down state
commercial bank bad debt and to restructure troubled state-
owned companies through the efforts of intermediary asset-
management companies (AMCs).

China Cinda filed its petition last week with Zhengzhou
Intermediate People's Court to liquidate the A-share
company, citing the retailer's debt of 2.23 billion yuan
(about HK$ 2.07 billion) and growing losses.  The firm's
interim report for last year said it had shed 500 million
yuan during the first half, which, when combined with 1998
losses of 502 million yuan, made restructuring unfeasible,
a China Cinda official said.

China Cinda's action represented the first time
shareholders of a mainland-listed company had moved to
bankrupt a firm. It was also the first reported case of an
AMC using its shareholding status to liquidate a firm.
What makes the Zhengzhou Baiwen case all the more
instructive is its timing.  China Cinda Asset Management
acquired 1.94 billion yuan in debt from the retailer only
in December.

The reasons for its decision to liquidate the firm, and its
motivation for acquiring the debt in the first place,
underscore the highly politicised atmosphere in which
Beijing is attempting to extricate itself from five decades
of state planning. The mainland's four asset management
companies - China Cinda, China Huarong, China Oriental and
China Great Wall - were established last year under a State
Council mandate to dispose of about 5 per cent of the non-
performing debt held by China Construction Bank, Industrial
& Commercial Bank of China, Bank of China and Agricultural
Bank of China.

The general idea was for the AMCs to help the Big Four by
accepting 1.2 trillion yuan in non-performing loans, 400
million yuan of which the AMCs could swap directly for
equity in troubled state-owned companies. The AMCs would
then help the indebted firms, first by alleviating heavy
debt and interest repayment burdens and then by using their
creditor and shareholder status to improve management and
operations of the companies.

If things went well, state planners said, the AMCs would be
able to increase lending recovery rates by converting debt
into equity and selling the shares to other parties,
including foreign-owned companies.  But what has emerged in
the months since Beijing's ambitious scheme was launched is
a tug-of-war between the AMCs and commercial banks, layered
beneath a contest of competing interests between central
and local governments.

Only 69 state companies have signed debt-equity swap
agreements with the four AMCs, accounting for 27.3 per cent
of the debt-equity swap quota. None of the agreements has
been formally adopted.  Apparently, troubles began with the
AMC mandate itself. The AMCs were organised by Beijing as
special-purpose vehicles to increase recovery of non-
performing loans.

Beijing has been seen to meddle at every step of the
process since the Ministry of Finance guaranteed
compensation to the AMCs for the difference between the
book value of loans acquired and their actual liquidation
price.  The State Economics and Trade Commission, for
starters, selected 601 large and medium-sized state-owned
companies to participate in the first round of debt
restructuring.

Those companies were supposed to represent the most
salvageable firms, but, as the Zhengzhou Baiwen case
demonstrated, lobbying from local governments has
largely determined which companies have been slated for
debt restructuring.  However, the AMCs also are designed as
profit-making institutions. Their aim is not only to
alleviate the burdens of poorly performing companies but
also to turn them around to earn profits from corporate
restructuring.

The AMCs, consequently, are interested in obtaining debts
held by the most salvageable troubled firms. The banks, on
the other hand, are not interested in selling debt held by
their most promising delinquent borrowers but, rather that
of their most troubled and hopeless clients.  The rationale
is plain enough.

When AMCs obtain bad debt from banks, they only do so on
paper. The AMCs are not responsible for making actual
payment until after the debt has been disposed.  Even
troubled companies with marketable goods and services are
able to make annual interest payments on outstanding
lending. The banks, by off-loading those loans to AMCs,
lose the interest payments.

That also has led to conflicts between the AMCs and local
governments.  According to a recent People's Daily article
the AMCs are not actually negotiating proposed debt-equity
swaps with the enterprises involved, but rather with their
local government patrons. The purpose is to strong-arm
localities into providing preferential tax and other
benefits as part of swap agreements.  That includes
permission to replace managers and lay off workers.

The AMCs also are looking for guarantees from local
governments to buy out company shares once the
restructuring process has been completed.  (South China
Morning Post  07-April-2000)


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

PT ALTER ABADI TBK: Delisting conditions given
----------------------------------------------
In accordance with hearing among management of PT Alter
Abadi Tbk, Jakarta Stock Exchange and Listing Committee on
Thursday, 23 March 2000, PT Alter Abadi Tbk has been given
a chance until 31 August 2000 to meet some conditions or
face delisting.

By 31 August, PT Alter Abadi Tbk must inform JSX of its
corporate plan, including its Business Progress and the
latest status of its debt restructuring. It also must
provide the management opinion regarding efforts to gain
non-disclaimer opinion from public accountant and
management estimation to the opinion which will be given by
accountant in the financial statement of 1999. Other
material facts/information which could influence the going
concern of company and the company's price of share must
also be reported.  (Jakarta Stock Exchange  07-April-2000)

PT BDNI CAPITAL TBK: Delisting conditions given
-----------------------------------------------
In accordance with hearing among management of PT BDNI
Capital Tbk, Jakarta Stock Exchange and Listing Committee
on Thursday, 23 March 2000, PT BDNI Capital Tbk has been
given a chance until 31 July 2000 to meet some conditions
or face delisting.

By 31 July, PT BDNI Capital Tbk must inform JSX of its
corporate plan, including its Business Progress and the
latest status of its debt restructuring. It also must
provide the management opinion regarding efforts to gain
non-disclaimer opinion from public accountant and
management estimation to the opinion which will be given by
accountant in the financial statement of 1999. Other
material facts/information which could influence the going
concern of company and the company's price of share must
also be reported.  (Jakarta Stock Exchange  08-April-2000)

PT HOTEL PRAPATAN TBK: Delisting conditions given
-------------------------------------------------
In accordance with hearing among management of PT Hotel
Prapatan Tbk, Jakarta Stock Exchange and Listing Committee
on Thursday, 23 March 2000, PT Hotel Prapatan Tbk has been
given a chance until 31 July 2000 to meet some conditions
or face delisting.

By 31 July, PT Hotel Prapatan Tbk must inform JSX of its
corporate plan, including its Business Progress and the
latest status of its debt restructuring. It also must
provide the management opinion regarding efforts to gain
non-disclaimer opinion from public accountant and
management estimation to the opinion which will be given by
accountant in the financial statement of 1999. Other
material facts/information which could influence the going
concern of company and the company's price of share must
also be reported.  (Jakarta Stock Exchange  07-April-2000)

PT JAKARTA KYOEI STEEL: Delisting conditions given
--------------------------------------------------
In accordance with hearing among management of PT Jakarta
Kyoei Steel Tbk, Jakarta Stock Exchange and Listing
Committee on Thursday, 23 March 2000, PT Jakarta Kyoei
Steel Tbk has been given a chance until 31 July 2000 to
meet some conditions or face delisting.

By 31 July, PT Jakarta Kyoei Steel Tbk must inform JSX of
its corporate plan, including its Business Progress and the
latest status of its debt restructuring. It also must
provide the management opinion regarding efforts to gain
non-disclaimer opinion from public accountant and
management estimation to the opinion which will be given by
accountant in the financial statement of 1999. Other
material facts/information which could influence the going
concern of company and the company's price of share must
also be reported.  (Jakarta Stock Exchange  08-April-2000)

PT KERAMIKA INDONESIA ASOSIASI: Delisting conditions given
----------------------------------------------------------
In accordance with hearing among management of PT Keramika
Indonesia Asosiasi Tbk, Jakarta Stock Exchange and Listing
Committee on Thursday, 23 March 2000, PT Keramika Indonesia
Asosiasi Tbk has been given a chance until 31 August 2000
to meet some conditions or face delisting.

By 31 August, PT Keramika Indonesia Asosiasi Tbk must
inform JSX of its corporate plan, including its Business
Progress and the latest status of its debt restructuring.
It also must provide the management opinion regarding
efforts to gain non-disclaimer opinion from public
accountant and management estimation to the opinion which
will be given by accountant in the financial statement of
1999. Other material facts/information which could
influence the going concern of company and the company's
price of share must also be reported.  (The Sydney Morning
Herald  08-April-2000)

PT PELANGI INDAH CANINDO: Delisting conditions given
----------------------------------------------------
In accordance with hearing among management of PT Pelangi
Indah Canindo Tbk, Jakarta Stock Exchange and Listing
Committee on Wednesday, 29 March 2000, the company has been
given a chance until 31 July 2000 to inform the JSX of its
corporate plan, including its business progress and the
latest status of PT Pelangi Indah Canindo Tbk debt
restructuring.

The report must also contain management opinion regarding
efforts to gain non-disclaimer opinion from public
accountant and management estimation to the opinion which
will be given by accountant in the financial statement of
1999. If the company fails to meet the 31 July deadline,
delisting will be considered.  (Jakarta Stock Exchange  07-
April-2000)


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

ISUZU MOTORS: Hit by accounting changes
---------------------------------------
Isuzu Motors, the Japanese truckmaker, on Friday warned of
�110bn ($1bn) in losses in the year to the end of March
2000 because of weak sales and a shortfall in its pension
reserves. It had earlier expected profits of �5bn.

Isuzu, in which General Motors has a 49 per cent holding,
is implementing tougher accounting standards one year ahead
of schedule. It would have to take an extraordinary charge
of �94bn ($895m) to cover underfunded pension liabilities
and other retirement payments.

The Japanese government is forcing companies to meet stiff
new accounting rules for pensions as well as real estate
and other assets. Many groups have decided to introduce the
new rules early in order to frontload any losses, which
analysts expect could be heavy.

Investors in the Japanese stock market have supported the
moves because they improve disclosure.  Shares in Isuzu
added 3.4 per cent or �8 to close at �246 on Friday.
The company added that sales for the period would be
�1,600bn, against an earlier forecast of �1,700bn, partly
because the strong yen.  In the previous year Isuzu
reported profits of �6.2bn on sales of �1,619bn.

Japanese truckmakers have been hit by the downturn in
capital spending in Japan and the rest of Asia. However,
analysts said that Isuzu has been suffering slower sales in
the US in recent months, despite stronger demand for sports
utilitiy vehicles. (Financial Times  08-April-2000)

JALECO LTD.: To see 3rd straight year of pretax loss
----------------------------------------------------
Jaleco Ltd. (7954) is expected to report a pretax loss of
830 million yen for fiscal 1999, a steep drop from its
initial projection of 160 million yen in pretax profit, and
its third straight year of loss.

The company saw a decline in sales of computer game
software for arcade game machines and for home use. Fiscal
1999 revenue is estimated at 5.8 billion yen, a 12.5% drop
on the year and some 1.7 billion yen short of the company's
earlier forecast.  The closing of four directly run game
arcades resulted in a loss of 130 million yen, which was
recorded as part of a 250 million yen extraordinary loss.

As a result of the lower pretax profit and the
extraordinary loss, Jaleco is expected to report a net loss
of 1.08 billion yen, compared with a 120 million yen profit
projected earlier. (Nikkei  07-April-2000)

NIPPON KOSHUHA: Kobe Steel to make it subsidiary
------------------------------------------------
Kobe Steel Ltd. (5406) said Thursday it will make group
firm Nippon Koshuha Steel Co. (5476) into a subsidiary.

The company will accept all the 43.2 million shares worth
3.88 billion yen to be issued by the manufacturer of
special steel for bearings on April 25. The purchase raises
its stake to 51.0% from the current 30.6%.

Nippon Koshuha has suffered pretax losses since the fiscal
year ended March 1997. The Tokyo-based firm plans to
reconstruct operations with the help of Kobe Steel. With
the funds to be raised by the private placement of new
shares and a better performance expected from the start of
the current fiscal year, the firm aims to reduce debt to
9.6 billion yen by March 2003 from 18.6 billion yen at
present.

Nippon Koshuha, which estimates a pretax loss of 1.4
billion yen for the year ended March, hopes to post pretax
profit of 700 million yen in the year through March 2003.
(Nikkei  06-April-2000)

NIPPON MITSUBISHI OIL CORP.: Gets 100B Yen commitment line
----------------------------------------------------------
Nippon Mitsubishi Oil Corp. (5001) will sign up Monday for
a yen and dollar commitment line worth more than 100
billion yen with a syndicate of 15 Japanese, European and
U.S. banks, The Nihon Keizai Shimbun learned Friday.

The company hopes the availability of emergency funds will
permit a sharp reduction in cash on hand. This will enable
it to repay by June 30 about 100 billion yen of its short-
term debt, which stood at about 150 billion yen at the end
of last month, on a parent-only basis. The repayment will
reduce its creditor banks from over 40 to 26.

Nippon Mitsubishi Oil hopes to reduce interest-bearing
consolidated liabilities by 40% over five years. Such
liabilities totaled about 1.3 trillion yen as of March 31,
1999.  The company will have access to commitment lines of
70 billion yen and 300 million dollars (about 31.5 billion
yen) which are renewable annually.

Putting up the yen funds will be Dai-Ichi Kangyo Bank
(8311), Sakura Bank (8314), Fuji Bank (8317), Bank of
Tokyo-Mitsubishi (8315) and five other Japanese banks. The
six Western banks include Chase Manhattan. (Nikkei  08-
April-2000)

SOFTBANK CORP.: Shares drop on earnings,cash flow concerns
----------------------------------------------------------
Softbank Corp. shares fell as much as 7.1 percent as the
company, Japan's largest Internet investor, yesterday said
it expects group net income fell in the year ended March
31.

Softbank shares declined as much as 5,200 yen, their
exchange- imposed limit, to 68,300 yen, and have fallen 20
percent in the past five trading days. The company
yesterday said it expects group net income for the year
fell to 3.5 billion yen ($33.4 million).

"Softbank's 3.5 billion yen net income is too small when
you consider the capital gains it posted," said Kota
Nakako, an analyst at Warburg Dillon Read, who rates the
shares "hold." He said the shares will probably fall to
about 60,000 yen.

Softbank's forecast for a decline in earnings deepened
investors' concern about the company's need to sell assets
to raise cash, Nakako said.  The company raised about 58.9
billion yen by selling some shares in its Softbank
Technology unit in the week ended March 31, re-opening
investors' questions about the company's financial
condition.

Last month, the company said it completed the sale of its
entire 4.85 percent stake in Trend Micro, a maker of anti-
virus software, for 66.9 billion yen. Softbank is also
considering a share offering to raise 300 billion yen, the
Nihon Keizai newspaper reported, without citing sources.
The company has since said it is undecided on the share
sale.

The company's share price decline also comes amid similar
woes at many of Japan's best-known Internet-related
companies. Hikari Tsushin Inc. was untraded yesterday a
fifth day, as sellers outnumbered potential buyers, on
concern earnings at the mobile phone subscription company
and Internet investor won't live up to earlier
expectations. The Sankei-Bloomberg Internet Index of 30
Internet-related companies in Japan has declined 33 percent
this year.

Softbank yesterday said it now expects current, or pretax,
losses of 55 billion yen, wider than its loss of 15.4
billion yen the previous year. The pretax loss was
attributed partly to a 47.5 billion yen loss in yen-
denominated long-term debt held by its U.S. unit, Softbank
Holdings Inc., and from a 13.5 billion yen interest payment
on debt held by its Ziff-Davis Inc. unit.

Softbank said net profit will probably fall because of
losses incurred on the sale of its stake in Kingston
Technology Co. and assets in its Ziff-Davis-dominated media
group.  Ziff-Davis, 69 percent owned by Softbank Corp., on
March 7 said it plans to spin off its ZD Events trade-show
business as it prepares to merge with its Internet unit,
ZDNet. Softbank sold Kingston Technology in July.
(Bloomberg  07-April-2000)

SOFTBANK CORP.: Group net profit falls 91%
------------------------------------------
Softbank Corp's consolidated net profit for the fiscal year
1999 plunged 91% on the year to 3.5 billion yen ($US33.38
million), due to losses incurred from rationalizing its US
subsidiaries.

Softbank booked extraordinary losses of 77 billion yen from
the sale of the Kingston Technology Co. and 120 billion yen
from the sale of Ziff Davis Inc.'s assets. The company was
unable to offset the losses using the 220 billion yen in
capital gains from sales of shares in Trend Micro and
Softbank Technology. Consolidated operating profit dropped
42% on the year to 7 billion yen, and consolidated sales
fell 20% to 420 billion yen. (Asia Pulse  07-April-2000)

SOGO CO.: Not all creditors able to forgive debt
------------------------------------------------
Sogo Co. Ltd., a big Osaka-based department store chain,
asked its creditors to forgive a staggering 639 billion yen
($8.85-billion) in debt yesterday.  If the banks comply, it
would be the largest ever writeoff in Japan.

Sogo said it had 530 billion yen more in debt than assets
as a group. It said it will ask about 70 banks, including
its biggest lender, Industrial Bank of Japan Ltd. (IBJ), to
waive loans. Sogo said its fate will have consequences that
stretch beyond its own future.

"There are 10,000 companies we do business with, most of
them small," said Tadashi Natori, Sogo's vice-president.
"What happens to [Sogo] will affect more than 50,000
employees at those companies and their families."

The company's banks are likely to go along with the
request, one analyst said. "Banks cannot let Sogo go
bankrupt because its debt is too big," said Hiroki Ihara,
an analyst at Okasan Economic Research.

A spokesman for Industrial Bank of Japan Ltd., Sogo's
biggest creditor, said yesterday the bank will forgive the
company's debts owed but declined to give the amount.
But two other big creditors, the Long-Term Credit Bank
(LTCB) of Japan and Nippon Credit Bank (NCB), remained non-
committal, saying only that they would study the matter.

One key to their decision may be whether Sogo's
restructuring efforts are dramatic enough to deliver a
turn-around and ensure that their largesse won't be
squandered.

"It's no surprise that Sogo has asked for debt forgiveness,
but if its business conditions remain as they are, it may
be pushed to the edge of crisis again," said Yasuyuki
Sasaki, analyst at Merrill Lynch.

Analysts said LTCB and NCB, which were put under state
control after collapsing under the weight of bad loans, may
be reluctant to grant Sogo's request. LTCB made a fresh
start last month as a unit of U.S. investment group
Ripplewood Holdings after it was rehabilitated through a
massive injection of public funds.

NCB, also likely to receive a hefty dose of public money,
is expected to be sold to a consortium led by Softbank
Corp. later this year.  Banking sources said Sogo appeared
to have asked IBJ for some 180 billion yen in debt
forgiveness, LTCB for 97 billion yen and NCB for 20 billion
yen or more.  (Bloomberg News; Reuters; (National Post  07-
April-2000)

SOGO CO.: FRC to prohibit Nippon Credit from waiving debt
---------------------------------------------------------
The Financial Reconstruction Commission will not allow
nationalized Nippon Credit Bank to relinquish 8 billion yen
in loan claims against financially strapped department
store operator Sogo Co. (8243), FRC Minister Sadakazu
Tanigaki told the press Friday.

On Thursday, Sogo asked 73 creditors to forgive a total of
639 billion yen in loans, the largest credit renunciation
request ever made.  Nippon Credit Bank has some 27 billion
yen in outstanding loans to the Sogo group, which is said
to have asked it to renounce about 50% of the unsecured
lending.  Tanigaki said, however, that Long-Term Credit
Bank of Japan could make its own decision on the loan
waiver request because it is no longer under state control.

In February 1999, the FRC said it would not let
nationalized banks accept credit renunciation requests of
companies that are not in the process of liquidating under
court supervision. Soon after, several firms, including
Haseko Corp. (1808), withdrew their debt forgiveness
requests made to Long-Term Credit Bank of Japan and Nippon
Credit Bank.

As for major banks that have received injections of public
funds, they should decide whether to accept credit
renunciation requests based on three criteria -- the
rationality of debt waiver, management efforts to accept
responsibility for the company's financial problem and the
social impact of relinquishing credit claims, Tanigaki
said. (Nikkei  07-April-2000)

TAIHO INDUSTRIES CO.: Takes 5.5B Yen loss on sale of unit
---------------------------------------------------------
Taiho Industries Co. (4953) sold its struggling U.S.
subsidiary, No Touch North America Corp., to a U.S. auto
products company for 3.83 million dollars at the end of
March, The Nikkei Financial Daily has learned.

After booking a 5.5 billion yen loss on the sale, Taiho
Industries expects to report a net loss of 4.9 billion yen
for the fiscal year ended March 31. The company earlier
forecast a net profit of 600 million yen.  No Touch North
America manufactures and markets automobile tire care
products.

But it failed to develop a market for them and has remained
in the red since its founding in 1990.  Taiho Industries
expects to report a group net loss of 5.02 billion yen for
fiscal 1999. (Nikkei  07-April-2000)

TOBISHIMA CORP.: Eyes capital reduction to make up loss
-------------------------------------------------------
Tobishima Corp. (1805) now expects to report a group net
loss of 22.50 billion yen for the last fiscal year ended
March 31, down from the earlier projection of a 250
million-yen net profit.

The general contractor said Friday it expects to report a
group pretax profit of 4.7 billion yen on group revenues of
315 billion yen.  Tobishima will book actual and appraised
losses on securities and real estate holdings to clear up
its financial status ahead of the introduction of stricter
accounting standards, it said.  As compensation for the
estimated net loss, Tobishima said it is considering a
capital reduction. (Nikkei  07-April-2000)


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

DAEWOO GROUP: Domestic creds. want larger collateral share
----------------------------------------------------------
Domestic creditor banks of Daewoo Group, once Korea's
largest conglomerate that is being dismantled after having
been toppled under heavy debts, are quarreling for a bigger
portion of the 10 trillion won in collateral the group's
former chairman Kim Woo-choong put up soon after the group
was put under a debt restructuring program.

Last July, Kim coughed up 10 trillion won in collateral in
return for fresh loans and a rollover of maturing loans.
The collateral comprised about 1.1 billion shares under his
control, worth 9 trillion won at that time, and real estate
valued at 1 trillion won.

The creditors took in the collateral - 6 trillion won for
new credits and 4 trillion for the rollover of maturing
loans - under collective ownership.  With the dismantling
process of Daewoo Group being sped up as the result of a
deal to settle foreign creditors' outstanding loans, the
creditors and the corporate restructuring committee, which
represents the will of creditors and the government,
decided to put the collateral out from collective ownership
and distribute it to each of the creditors.

They agreed on a format of distribution where the more
loans a creditor has extended to Daewoo, the larger share
it is given.  The problem comes with the next step. Some
Daewoo affiliates such as Daewoo Motor Service were not
given any fresh credits and therefore are entitled to take
back some of the collateral. The collateral up for return
to the owners amounts to 1 trillion won.

Some of the creditors are arguing that it is absurd to
return some of the collateral since the entire amount is
not enough to cover the debts and they are now facing the
prospect of providing additional loans.

Making matters worse, the collateral, valued at 10 trillion
won when it was put up, has been reevaluated at less than
one fifth of the original worth as the result of stock
prices that hit bottom since Daewoo was put up for debt
restructuring and disintegration.

At the same time, some of creditors are raising the issue
of impartiality over the fact that only creditors that
provided fresh loans to get Daewoo affiliates going are set
to receive the lion's share of the collateral. The
creditors that have arranged for 12 trillion won in
maturing Daewoo loans to be rolled over will likely end up
with nothing.

"To stretch my imagination to its limit, I could agree to
the present format that distributes, in principle, the
collateral among creditors in accordance with their amount
of exposure," a creditor bank official said. "But with the
entire collateral being significantly reduced in value,
giving some back to Daewoo affiliates is out of question."

However, the corporate restructuring committee is
determined to push for the return of the collateral,
believing it is of the utmost importance to distributed the
collateral among creditors, even if it means that some will
be handed back to Daewoo affiliates.

"It's regulation against sentiments," one official said.
"We should follow the rule and wrap up the distribution of
collateral as soon as possible to get over with Daewoo's
debt restructuring once and for all."

As things stand now, financial industry watchers say it is
fast emerging as an issue of contention setting creditors
against its representative, the corporate restructuring
committee, and that unless a settlement is found soon, it
could thwart the smooth resolution of the Daewoo issue.
The creditors and the government are also facing another
problem in suits file by Daewoo's creditors not satisfied
with the workout format, leaving some Daewoo assets
impounded by the court.

As recently as last month, the domestic creditors,
represented by the corporate restructuring committee, had
resolved the issue of debts held by foreign creditors,
coming up with an agreed format on the out-of-the-money
warrant or "schmuck warrant" on the portion of their debts
that were written off. (Korea Times  05-April-2000)

DAEWOO MOTORS: Strike might dampen foreign fervor
-------------------------------------------------
The planned sale of the ailing Daewoo Motor is facing its
most difficult test as union members at the Korea's second
largest automaker are up in arms together with their fellow
workers from other automotive companies.

A key motive put forth by the automotive unionists is to
thwart the sale of Daewoo Motor to a foreign company. The
degree of the strife is expected to gain momentum as it is
fast becoming a political issue tied to the April 13
general election in the midst of the season when labor
strife peaks.  Foreign bidders for Daewoo Motor - General
Motors, Ford Motor, DaimlerChrysler and Fiat SpA - are
feeling uneasy about the prospects of rising labor
sentiments opposing the sale of Daewoo to a foreign
company.

One executive of a foreign bidder has reportedly expressed
great concern about the latest turn of events, saying, "I
don't think it is wise to oppose a foreign takeover of
Daewoo without fully comparing the benefits and
disadvantages. They are doing a thing that they will regret
later," he added on condition of anonymity.

The GM president in charge of the Asia-Pacific region
warned in Singapore Wednesday that Daewoo was dying from a
workers' strike. GM Korea managing director David Jerome
also expressed worry about a reduction in the value of
Daewoo Motor as a the sale process is becoming protracted.

The Daewoo Corporate Restructuring Committee, which is
coordinating an international auction of Daewoo Motor,
thinks what was feared has finally come to pass, keeping
tabs on fresh developments in the unions' movement.

But industry watchers see the automotive unions' vow to
thwart a foreign bid for Daewoo as part of an effort to
secure the best guarantees they can get in terms of job
security prior to the selection of Daewoo Motor's new
owner, which will certainly involve a major reduction in
manpower and wages.

They say that should the labor strife turn for the worse,
the government would be left with no other choice than to
put a higher priority on the job security of employees of
Daewoo Motor and Ssangyong than the sale price.

A Daewoo Motor official said the unions would be satisfied,
should their force be projected into the minds of whoever
takes over Daewoo Motor.  This sentiment is probably behind
the lack of urgency shown by unions of other automakers
participating in a sympathetic strike, industry watchers
say.

A union official said that although the three motor
companies either already have or are planning to join
Daewoo workers in the strike, they are likely to end their
collective action around April 13 when the election takes
place, leaving Daewoo union members alone in their effort.

It is hard to predict the eventual impact of the automotive
workers' strike but one thing that is certain is that it
will remind foreign investors of how important a role
unions play in corporate management. (Korean Times  06-
April-2000)

DONG AH CONSTRUCTION: Debts are restructured
--------------------------------------------
Dong Ah Construction says its creditors have restructured
its debts of 1.8 trillion won (US$1.62 billion) through
debt-to-equity swaps and funds provided by affiliate Korea
Express.

In a meeting to discuss normalizing Dong Ah's operations,
creditors led by Seoul Bank switched 1.1 trillion won of
Dong Ah's debt to equity and reduced its debts with 700
billion won in funds provided by Korea Express.

The 1.1 trillion debt to be turned into equities consists
of 1.02 trillion won in the group's obligations and the
remainder in debt guarantees, the bank said. Creditors are
also considering ways to handle Korea Express, the group's
delivery service arm, which has provided payment guarantees
of 700 billion won to Dong-Ah Construction Co., it said.

"Creditors will sign a debt reduction agreement with the
conglomerate within one month," a bank official said.
"After the agreement is signed, it will be decided upon
whether to sell off Korea Express or to convert the debt
guarantees into equities."

Debt-for-equity conversions for the group will be made
through the issuance of common stocks at market values, the
bank said, adding that Dong-Ah stocks, whose market values
exceed face values, will be issued at face values. (Korea
Herald  07-April-2000, Asia Pulse  06-April-2000)

HANDUK LIFE INSURANCE: SK Group set to acquire it
-------------------------------------------------
The SK Group, which recently took over ailing Kookmin Life
Insurance, is likely to acquire another troubled insurer,
Handuk Life Insurance, from the government.

The Financial Supervisory Commission said yesterday that it
has selected the SK Group for exclusive talks on the sale
of Handuk, of which the Youngpoong Group wanted to acquire
but gave up.  The FSC and the SK Group plan to sign a
memorandum of understanding on the sale as early as next
week, and expect to sign a final contract by the end of the
month.  SK Group offered to buy the troubled life insurance
company for 20 billion won. (The Korea Herald  08-April-
2000)

SAMSUNG MOTORS: Creditors, company disagree on debt
---------------------------------------------------
The sale of Samsung Motors to Renault, which has run into a
snag involving the former's loan of the sales division of
sister company Samsung Corp, awaits a court decision after
domestic creditors failed to persuade Samsung Corp to
soften its demand for full payment.

Samsung Corp did not accept creditors' offer to include the
sales division that Samsung Corp lent the carmaker for
nearly 300 billion won (US$269 million) as part of the
complete sale price, and re-evaluate the assets at current
market value to lower the latter's repayment demand.

Creditors and Renault agreed to extend the exclusive talks
for 15 more days to April 21. Creditors must resolve the
Samsung Corp debt issue or see nearly half the sum offered
by Renault taken by Samsung Corp. (Asia Pulse  06-April-
2000)

SAMSUNG MOTORS: To let court decide differences
-----------------------------------------------
Samsung Motor Inc creditors and the company's parent
Samsung Corp have decided to ask the court to resolve
differences over how much of Samsung Motor's debts should
be shared by the parent firm, an official of major creditor
Hanvit Bank said.

Samsung Corp and its unit's creditors ended a meeting this
morning without a compromise on the level of hidden debt
Samsung Motor owes to Samsung Corp, he said.

"The court must manage to work out a breakthrough (on the
debt issue), which is necessary to proceed with the
negotiation for the sale of the ailing automaker to Renault
SA," the official said.  (AFX News Limited  06-April-2000)


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

LEADER UNIVERSAL HLDGS.: Posts annual loss
------------------------------------------
Leader Universal Holdings Bhd, in an amended announcement
of its results, has reported a pre-tax loss of RM408.4mil
for its financial year ended Dec 31, 1999, from a loss of
RM251mil in 1998.

The company has reported an operating loss of RM46mil from
a profit of RM73.8mil and a net loss of RM341.4mil from
RM198.9mil. Loss per share was 78.27 sen against 45.62 sen
previously.  The amendment is to revise its consolidated
loss before tax to RM408.4mil from RM387.8mil mainly due to
provision for corporate guarantee given to Incab Industries
Ltd. (The Star  07-April-2000)

TIME ENGINEERING BHD: SingTel buys stakes in Time units
-------------------------------------------------------
Singapore Telecommunications Ltd., stymied in its attempt
to buy Hong Kong's biggest phone firm, will pay more than 2
billion ringgit ($526 million) for stakes in Time
Engineering Bhd. and two of its units, gaining access to
Malaysia's largest fiber optics network.

The stake sales will raise cash-strapped Time the money it
needs to it pare debts. Under the terms of the agreement
signed late Wednesday night, the two companies will have
until May 5 to seal their pact, including a study on the
final price for the transaction.

SingTel will get "significant active participation" in the
management of the Malaysian company, getting "at least
proportionate representation on the boards," Time said.
That is likely to put Time -- it has the smallest share of
Malaysia's 13 billion ringgit a year phone business among
the country's five phone networks -- on track to expand,
and grow its business.

"The initial threat will be to Telekom Malaysia," the
dominant phone company in the country, said Juggins. "Time
has big plans to push into the cellular market in
Malaysia."

Telekom Malaysia Bhd. shares slumped to a three-month low
on concern ties between rival Time and SingTel will erode
earnings at Malaysia's biggest phone company. Telekom
shares, the biggest stock on the Kuala Lumpur Stock
Exchange, slumped as much as 1 ringgit, or 6.5 percent, to
14.40 ringgit, its lowest level since Jan. 5.  (Bloomberg
07-April-2000)


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

MONDRAGON INT'L PHIL.: Expects to finalize investor talks
---------------------------------------------------------
Mondragon International Philippines Inc is expecting to
finalise talks with prospective investors in two to three
weeks, BusinessWorld reported, quoting MIPI chief executive
officer Antonio Gonzales.

Gonzales said discussions with four to six foreign and
local investors have progressed to a more advanced stage.
He did not identify the parties.

"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 operations," Gonzales said.

He said Mondragon is in talks with foreign gaming firms
based in Hong Kong, the U.K., and Australia, as well as a
number of local firms which have expressed interest. MIPI
hopes to end the talks soon to help subsidiary Mondragon
Leisure and Resort Corp pay off its 5.93-bln peso debt owed
to creditor banks and government agencies, the report said.
(AFX News Limited  06-April-2000)

PHILIPPINE AIRLINES : L.Tan willing to sell PAL
-----------------------------------------------
Wanting to clean up his "crony" image, Chinese Filipino
businessman Lucio C. Tan is willing to sell beleaguered
Philippine Airlines, Inc. (PAL) to interested investors.

Finance Secretary Jose T. Pardo yesterday said the tycoon
expressed willingness to sell his stake in the airline to
get rid of the crony image which media and other parties
attached to his name.

"He was always being blamed of cronyism and he has seen how
it has affected the president's popularity," Mr. Pardo told
reporters yesterday.

Mr. Tan, a close friend and associate of President Joseph
Estrada, is chairman of flag carrier PAL in which he holds
majority stake.  The tycoon started acquiring PAL shares
when the airline was privatized under the Aquino
administration. Mounting loan defaults in 1998 resulted in
labor and financial problems for the firm.

The flag carrier is currently under rehabilitation and
regulatory supervision by the government.  Mr. Pardo added
the Chinese-Filipino businessman is willing to sell his
stake in PAL "given the right price."

"If there could be a buyer interested. Like most
entrepreneurs, if the price is right, he would be willing
to sell," he said.

Asked if Mr. Tan's plan was serious, the Finance chief
said, "I was taken aback. I thought at first it was just a
response because we forced his hand in PNB (Philippine
National Bank). But the more I talked to him, the more I'm
convinced that he really wants out (of PAL)."

Mr. Pardo added the tycoon wants to clear issues on
sweetheart deals he allegedly entered into with the
government.  The same issue was brought up when the
Department of Finance (DoF) asked Mr. Tan to sell his 46%
stake in PNB together with the government's 30% stake.

The beer and cigarette tycoon is also the majority
shareholder of semi-private PNB which the government aims
to sell this year. Mr. Tan recently agreed to the
government's proposal to sell shares at PhP160 per share.

"It has been a victory of sorts. He wants to sell PAL as
well. He says I am willing to sell both," Mr. Pardo said
(Business World  07-April-2000)

PHILIPPINE NAT.BANK: L.Tan wants to sell stake by May 15
--------------------------------------------------------
Chinese-Filipino businessman Lucio C. Tan has given the
government until May 15 to start the public bidding of his
shares in semiprivate Philippine National Bank (PNB).

Finance Secretary Jose T. Pardo said the tycoon indicated
in his April 5 letter to the Department of Finance (DoF)
that he wants the sale to start "on or before that day".
This will be slightly more than a month earlier than the
original deadline set by the International Monetary Fund
and the World Bank on the full privatization of PNB.

In the letter, Mr. Tan also signified his commitment to
unload his 46% stake together with the National
Government's 30% stake in the bank.

"It is the deadline set. We have his confirmation of this
two days ago. I have the President's full powers to sell
PNB," Mr. Pardo yesterday told reporters on the fringes of
the Foreign Correspondents Association meeting in Manila.

Mr. Pardo said the Committee on Privatization (CoP), the
government's privatization arm, will convene today to draw
up the guidelines for the joint sale.  He added the DoF and
Mr. Tan have yet to agree on the selling price of the PNB
shares as they are still waiting for a parallel audit of
the bank being done by SGV & Co. and Punongbayan, Araullo,
and Associates.

"The audit will be (completed) by April 30 so any party
willing to take a look would have all the audit available
for them to see," he said.

Mr. Pardo met with PNB financial advisor Lehman Brothers to
decide on a range of prices with which to sell the shares.
"It's important that we establish this. It could go higher
or lower (than the PhP160 price pegged earlier). We have to
move fast," he said

Mr. Tan made it firm earlier he will sell his 46% stake at
PhP160 per share which covers the costs of his purchase
last year.  The tycoon has committed to join the government
in selling shares of PNB as a block since doing so is
expected to "attract more investors", Mr. Pardo had said.

Reading out excerpts of the letter, Finance Undersecretary
Cornelio C. Gison earlier 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."

But Mr. Tan also gave the DoF the option to rescind a loan
agreement contract with the PNB Retirement Fund, Inc.
involving 10.59% of the total number of shares he allegedly
owns, Mr. Pardo said.  The businessman acquired the stake
by extending a 3.3-billion Philippine pesos (PhP) (US$80.23
million at PhP41.129:US$1)loan to the PNB Retirement Fund,
which was the vehicle used to buy the PNB shares the
National Government passed up last September.

Mr. Pardo, yesterday said the DoF is not inclined to draft
a memorandum of agreement that will "formalize" the deal
with Mr. Tan. It will, instead, write a letter to Mr. Tan
indicating the pricing and details of the sale.  He said
three foreign investors have already expressed interest in
buying the PNB block.  The DoF is under pressure to
complete the privatization of PNB by June to fulfil
commitments with the World Bank and the IMF. (Business
World  07-April-2000)


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

BANCHANG GROUP: To undergo debt restructuring
PRASIT COURT: To undergo debt restructuring
PREMIER PRODUCTS: To undergo debt restructuring
ROBINSON'S DEPT.STORE: To undergo debt restructuring
----------------------------------------------------
The Central Bankruptcy Court has accepted requests from
four debt-ridden companies to help mediate with their
creditors to undergo administrative and debt restructuring
processes, involving a combined total of 21 billion baht,
according to central bankruptcy court spokesperson,
Pornchai Assawawatthanaporn.

In a statement released yesterday, Pornchai said the four
companies comprise Premier Products, Bancharng Group,
Prasit Court, and Robinson's Department Stores.  Each of
the four ailing companies gave as their main reason for
being badly in debt that the country encountered a heavy
economic crisis.

The bankruptcy court called for preliminary hearings on May
1 for three companies, except Robinson's for which the
court set an appointment date for May 2.  Robinson has a
total of 17.46 billion baht in outstanding debts that need
to be restructured in order to salvage operations.

The department store operator, together with one of its
creditors, Hongkong & Shanghai Banking Corporation (HSBC),
made a joint request to the central bankruptcy court. They
proposed that Robinson Planner Company be appointed to
formulate a plan for debt and administrative restructuring.

Premier Products, a designer and producer of household and
industrial environmental systems and products, informed the
court that it had a total debt of 990 million baht. The
company, which has a total market share of 40 percent,
asked the court to appoint its subsidiary company, Premier
Planner, to formulate and implement a restructuring plan.

Meanwhile, Bangcharng Group, holds total debts of 2.49
billion baht, mainly with financial institutions, trading
companies and others. The company, which is involved in
land and property development, asked the bankruptcy court
to appoint Asian Capital & Consultant to carry out its debt
management and administrative restructuring planning.

Prasit Court submitted a request for the restructuring its
business activities through Lamphun Court, in order to
restructure its debts of 71.33 million baht.  (Business Day
07-April-2000)

BANK OF THAILAND: Restructures Bt751B in debt
---------------------------------------------
The Bank of Thailand yesterday announced that corporate
debts constituting 2,837 loan cases - worth Bt751.59
billion - were successfully restructured last month under
supervision of its debt restructuring advisory committee.

Yodchai Choosri, the advisory committee's chief, said
yesterday the central bank's special workforce had 7,102
loan cases worth Bt2.35 trillion under its supervision.
He said the number of successful debt restructuring deals
were expected to decrease, given most large corporations
had already successfully restructured.

"The result of debt restructuring negotiations for half of
the remaining debts will be known this month and the other
half will be known in May," Yodchai said.

Restructured debts of Bt751.59 billion aside, a further
1,694 cases with combined debts of Bt881.43 billion were
currently the subject of court procedure.  The remaining
326 cases, worth Bt164.45 billion, had ifficulties and were
about to go to court, he said. Also, debts of Bt384.83
billion were currently being restructured.

The total value of debts awaiting debt restructuring
approval accounted for Bt7.16 billion, or 869 cases.
Most companies that had completed their debt restructuring
under the Corporate Debt Restructuring Advisory Committee
(CDRAC) were those in industry, property, trades and
services, Yodchai said.

Of successfully restructured debts, Bt717.98 billion debts
belonged to 316 large corporations, while the rest, Bt33.6
billion, was owned by 2,521 small- or medium-sized
companies.  Of the value of debts that went to the court,
Bt811.78 billion belonged to 836 large firms and Bt69.65
billion was from 858 small- or medium-sized enterprises.
The bank said that as of March, there were 326 loan cases
with debts of Bt164.46 billion in the pipeline, set to
undergo legal procedures. There were 29 loan cases with
proposed debt restructuring plans, which bank creditors had
voted against.

In February, financial institutions under the CDRAC's
supervision had restructured 197,165 loan cases worth
Bt1.19 trillion to the end of February.  Yodchai said debt
restructuring in February was up 5.57 per cent from
January.  For this month, debts of Bt1.09 trillion, owned
by 27,498 debtors, were the subject of legal procedure.
(The Nation  08-April-2000)

ROBINSON'S DEPT.STORE: Court accepts rehab petition
---------------------------------------------------
The Central Bankruptcy Court has accepted a petition from
Robinson Department Store to enter business rehabilitation
for its 17.46 billion baht in debt.

Bankers Trust is preparing the rehbilitation plan. Also
submitting the petition for rehabilitation was Hongkong
Bank, to which Robinson owes 140 million baht.

On Wednesday, the court also accepted petitions for
rehabilitation from Premier Products Co for 990.27 million
baht in debt, Ban Chang Group for 2.49 billion baht in
debt, and Prasit Court for 71.3 million in debt. (Bangkok
Post  07-April-2000)

THAI PETROCHEM.INDUS.: No response from Prachai
-----------------------------------------------
The Steering Committee of Thai Petrochemical Industry Plc
creditors have yet to receive a response from TPI president
Prachai Leophairatana to join the executive of the creditor
steering comittee, a source close to both parties said.

The Steering Committee issued the invitation at a meeting
of creditors Tuesday which was convened to clarify recent
statements by TPI.  The source said that as of today, there
has been no response from Prachai to the invitation.

In a circular to creditors dated March 24, TPI said it may
be willing to appoint as a restructuring planner a jointly
held company in which a 'Big 5' accounting firm holds a
majority interest.  A letter, made available here, issued
by the TPI creditors Steering Committee in response, said
it does not believe "that the establishment of such a
company is necessary, practical or desirable, especially in
light of the relatively short time remaining before the
planner vote.

"It is unnecessary because Effective Planners (the planner
established by the creditors) possesses all of the
capabilities and experience to act as planner and intends
to invite TPI's existing management to work with EPL in
operating TPI's business while the plan is being prepared.
The final authority and responsibility for operating the
business during this period will rest with EPL as planner,
as the law requires.

"With respect to the practical considerations, it is
apparent that the concept of a joint company was only
recently conceived by TPI. TPI's second circular to
creditors dated March 31 named 7 accounting firms as
possible candidates for a joint planner role.

"The Steering Committee understands that of the 'Big 5'
accounting firms named a majority have already declined the
invitation.  Ferrier Hodgson/ EPL, despite being named,
have never been formally invited but have, in any case,
confirmed their agreement with the Steering Committee
that such a structure is unnecessary and undesirable. This
second circular may cause confusion among creditors.
Creditors who support EPL as planner should not respond to
the second (TPI) circular but should vote for EPL on the
19th April 2000," the letter said.

The letter said that TPI management response to the
creditors' invitation to work with its planner, "will be
the prime determinant of what level of external operational
management resources will be put in place, and therefore
what level of additional costs, if any, may be incurred.

"Whilst EPL has additional operational management resources
available, it hopes that very few of these resources will
turn out to be necessary. TPI has suggested that public
relations costs and legal fees amounting to hundreds of
millions of dollars have already been incurred. This is
wildly incorrect. In fact, such costs, covering the period
since the debt moratorium (August 1997) to date, are less
than five mln usd. To put this in context, unpaid interest
the 3.5 bln usd in financial debt is accruing at around
one mln usd per day."

The creditor letter also said TPI has suggested that if EPL
is selected by creditors as the planner, it intends to
remove existing management.

"This is incorrect in that, assuming management agrees to
act in accord with EPI's direction, it will be invited to
stay and assist EPL."

In response to suggestions by TPI that its jointly owned
company as planner would enable TPI's operations to
"continue in a manner consistent with the maximising of
cashflow, ensure equitable treatment of all creditors, and
create transparency in the planner process", the Steering
Committee said while agreeing with these objectives, "in
view of the history of the negotiations to date, it is not
confident in TPI's willingness or ability to act in the
best interests of all parties.

"We believe these goals can best be achieved in a timely
manner if EPL is appointed planner."

TPI creditors will vote for a planner on April 19.  (AFX
News Limited   07-April-2000)

THAI TEL.AND TEL.: Files plan with court
----------------------------------------
Thai Telephone and Telecommunication said yesterday that it
had submitted a petition for rehabilitation to the Central
Bankruptcy Court.

Creditors last month agreed to a 38billion-baht
restructuring plan for the fixed-line operator which would
reschedule loans to up to 17 years. The company is required
to raise five billion baht in new capital over the next
several years.

TT&T said it expected that the rehabilitation plan would be
completed under court protection within three to four
months. It said operations would not be affected. The
company has a concession from the Telephone Organisation of
Thailand to operate 1.5 million fixed telephone lines in
the provinces. Revenue per line has consistently been below
projections, while TT&T must pay the state agency 43.1% of
its revenues.

TT&T has been viewed as a potential takeover target once
rehabilitation issues have been settled. One potential
suitor is said to be TelecomAsia, operator of the Bangkok
fixed-line system. (Bangkok Post  08-April-2000)


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

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