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                            A S I A   P A C I F I C

             Monday, May 8, 2000, Vol. 3, No. 89

                                    Headlines


* A U S T R A L I A *

BHP CO.LTD: Posts $27M Q3 loss after iron plant write-down  
GRAEME GRUBB FINANCE: Broker charged with obstruction
MANUFACTURER CAPRAL ALUMINIUM: Plant to close,cut 200 jobs  
ONE NATION PARTY: Facing payback, bankruptcy
PRESTON RESOURCES LTD.: Tech problems add to financial woes
SAUSAGE SOFTWARE: Merger now on shaky ground
SAUSAGE SOFTWARE: Board rejects takeover offer


* C H I N A  &  H O N G  K O N G *

CHEUNG KONG: Moody's now downgrades
HUTCHISON WESTPORTS: Moody's now downgrades
HUTCHISON WHAMPOA: Moody's now downgrades
SHOUGANG CONCORD INT'L: Posts annual loss
WHARF HOLDINGS LTD.: Loses appeal in U.S. court


* I N D O N E S I A *

BANK CENTRAL ASIA: IBRA to sell off assets
BANK DAGANG NASIONAL INDONESIA: IBRA to sell off assets
BANK DANAMON: IBRA to sell off assets
PT JOHN HOLLAND INDONESIA: Namprasert sheds coal mine stake
PT KELIAN EQUATORIAL MINING: Protests halt operations
PT OMETRAO CORP: IBRA asks Supreme Ct. for review
PT PEMBANGUNAN PERUMAHAN: Selection as builder prompts ire
PT SUMI ASIH: IBRA asks Supreme Ct. for review
PT TIMOR PUTRA NASIONAL: Gov't to take over


* J A P A N *

DAIICHI MUTUAL INSUR.CO.: FSA chief tries to quell panic


* K O R E A *

DAEWOO GROUP: Decision time for Daewoo bankers
DAEWOO MOTOR: Ford pledges to outbid GM  
DAEWOO SECURITIES: KDB agrees with Gov't to take over
MIDOPA DEPT.STORE: Main store put up for sale to foreigners


* M A L A Y S I A *

NESTLE (M) BHD: Restructuring will not affect profit levels
TIME ENGINEERING.: Deal with SingTel valid till May 11


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

ASB GROUP: Granted debt relief
FAIRMART DEPT.STORE: To cease operations May 14
PEARLBANK SECURITIES: Denies owing Wincorp a cent
SANDA INDUSTRIES: Plans share issue to settle debts
URBAN BANK: Land Bank to sue bank officials
URBAN BANK INVEST.CORP.: BSP, SEC set probe  


* T H A I L A N D *

BUMRUNGRAD HOSPITAL: SET suspends trading
FINANCE ONE: Fraud hearings delayed as probe continues
HIPRO ELECTRONICS: Reports on delisting, company status
NAKORNTHAI STRIP MILL: SET suspends trading
ROBINSON DEARTMENT STORE: SET suspends trading
SRIVARA REAL ESTATE GROUP: SET suspends trading


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

BHP CO.LTD: Posts $27M Q3 loss after iron plant write-down  
----------------------------------------------------------
Resources giant BHP Co Ltd today reported a net loss of
$A46 million ($US26.69 million) for the third quarter after
it wrote down its troubled hot briquetted iron plant in
Western Australia by $A794 million ($US460.68 million).

BHP also said it would make a decision on the continued
operation of the plant by the end of this calendar year.
Excluding abnormal items - the writedown of HBI and a tax
benefit of $A190 million ($US110.24 million) - BHP reported
net profit of $A558 million ($US323.75 million) for the
three months to March. (Asia Pulse  04-May-2000)

GRAEME GRUBB FINANCE: Broker charged with obstruction
-----------------------------------------------------
Disgraced finance broker Graeme Grubb was arrested and
charged with hindering police during a raid by fraud squad
officers on his South Perth home early yesterday.

The fraud squad team and officers from the Australian
Securities and Investments Commission went to Mr Grubb's
home to execute a search warrant about 7am but were
allegedly obstructed.  Acting Det-Insp. Gary Budge said it
would be alleged that during the search Mr Grubb attempted
to leave the house with documents which were subject to
seizure by the officers.

He was taken to the Victoria Park police station and
charged. The officers have seized documents relating to an
investigation of the handling of a trust account at Graeme
Grubb Finance, the now-defunct finance broking business.

Dozens of fraud squad officers have been working on a wide-
ranging investigation into aspects of the finance brokers
crisis since December and charges are expected to be laid
soon against several industry figures.

Mr Grubb, 56, has been banned for life by the Australian
Securities and Investments Commission from acting as a
securities dealer representative or investment adviser.
Graeme Grubb Finance went into liquidation last year after
an ASIC investigation.

In State Parliament yesterday, Fair Trading Minister Doug
Shave was asked why other finance brokers who were
embroiled in the finance broking scandal had not been
stripped of their licences.

Those named by Labor fair trading spokesman Jim McGinty
were: John Margaria, of Global Finance; Kaye Blackburne, of
Blackburne and Dixon; Peter Fermanis, of Trust Group; and
Ross Fisher, of MFA Finance. Mr Shave said though these
people had not lost their licences, all except Mr Fermanis
could no longer trade because they no longer held business
certificates issued by the Finance Brokers Supervisory
Board.

A board spokesman said the brokers could still work as
finance brokers but could not control their own finance
broking business. A board hearing into a complaint against
Mr Fermanis had been adjourned. (The West Australian  03-
May-2000)

MANUFACTURER CAPRAL ALUMINIUM: Plant to close,cut 200 jobs
-----------------------------------------------------------
About 200 workers are set to lose their jobs in Sydney's
west, with the closure of a sheet aluminium factory.
Manufacturer Capral Aluminium will close its sheet division
in Granville by the end of the year.

It is one of two companies in Australia that rolls out
aluminium for use in transport, roofing, whitegoods and
foil.  Company secretary John Krenich says the sheet
division has become inefficient and cannot compete with
imports.

"This plant is an older plant. The size of the plant and
with reductions with tariffs over the years, it's just not
viable to keep operating it," he said. (ABC News Online  
05-May-2000)

ONE NATION PARTY: Facing payback, bankruptcy
--------------------------------------------
The One Nation Party could soon have to repay electoral
funds in two states. On 2 May 2000, the New South Wales
Electoral Funding Authority said it would decide by 5 April
2000 whether to de-register the Party, thereby forcing it
to repay $A800,000 in electoral funding.

Queensland Electoral Commissioner Des O'Shea says the
commission will decide on action after studying the
defence. If One Nation loses, a judgement would be issued
that would likely allow the commission to take further
legal action, including bankruptcy proceedings, to enforce
it.  

On the same day, Pauline Hanson failed to meet another
deadline to pay back $A502,000 in Queensland. A One Nation
spokesman says $A300,000 has been raised and the party
filed a challenge to the summons for the repayment.
(The Courier Mail  03-May-2000)

PRESTON RESOURCES LTD.: Tech problems add to financial woes
-----------------------------------------------------------
Not only is nickel miner Preston Resources Ltd struggling
to survive financially, its Bulong nickel operation
continues to be hampered by technical problems.

Bad weather and a build-up of gypsum in the nickel solvent
extraction circuit caused production to slump during the
March quarter.  But Preston said the problem being tackled
was considered to be one of the last major technical
challenges to be resolved before the plant achieved reached
its design throughput.

The smallest of Western Australia's three laterite nickel
operations, Bulong processed 87,793 tonnes of ore in the
March quarter compared with 91,636 tonnes in the December
quarter.  Nickel and cobalt production totalled 1,253
tonnes and 96 tonnes of cobalt respectively. Preston said
measures taken to combat the accumulated gypsum had
restored output to budgeted levels in April and longer term
solutions would be implemented in the next two weeks.

Meanwhile, rating agency Standard and Poor's lowered the
rating for Preston subsidiary Bulong Operations Pty Ltd's
senior secured debt to CC- from CCC because of concerns of
it defaulting on its June 15 interest payment to
bondholders.

But Preston said it had reached a deal with bondholders and
Barclays Bank over the restructuring of the bonds and the
provision of a $15 million loan facility by Barclays in
return for half of the Bulong operation and its Marlborough
nickel project.

Preston said the bondholders and Barclays had executed a
standstill agreement and would not take any enforcement
action while Bulong Operations and the bondholders
discussed a restructuring of the terms of the bonds, as
long as there was no new default.

Preston said that with the proposed restructuring it may
apply for re-quotation on the Australian Stock Exchange by
the middle of the year.  Shares have been suspended since
October 29. (World Reporter  01-May-2000)

SAUSAGE SOFTWARE: Merger now on shaky ground
--------------------------------------------
Former Kiwi Steve Outtrim may have got out just in time. In
late February Outtrim cashed up shares in the company he
founded, Sausage Software, to the value of $A60 million.
But revelations about former Telecom new media boss Chris
Tyler could crimp the $A3.5 billion merger in Australia of
the company he now heads, accounting software firm Solution
6, with Sausage.

Australia's Business Review Weekly says Tyler was convicted
in Texas in 1985 of possessing between 50lb and 200lb of
marijuana. His 10-year prison sentence was suspended. Both
The Sydney Morning Herald and The Australian picked up on
the story.  The BRW article also revealed details of
Tyler's involvement in Lessonware, a Canadian multimedia
titles company listed on the Vancouver Stock Exchange in
June 1992 but suspended by November because its US trading
arm had filed for Chapter 11 bankruptcy.

BRW says questions were raised in the Canadian media about
whether Tyler, who was chief executive and president of
Lessonware, had disclosed sufficient detail about
questionable dealings to shareholders prior to the
company's downfall. The British Columbia Securities
Commission reviewed events but no action was taken against
any Lessonware officers.

Some Australian reports now doubt whether the merger deal
announced on March 20 - which also includes Telstra - can
proceed with Tyler at the helm. All parties have, however,
publicly reaffirmed their confidence in the deal, stressing
that they are investing in the company, not any individual.
Solution 6 is offering six shares for every 10 Sausage
shares.

Telstra, which has a 24% stake in Solution 6, is to invest
a further $A237 million to gain 40% of the new entity.
Telstra is to pay $A9.75 for Solution 6 shares. Last
Thursday Solution 6 shares were worth $A6. In December, a
few weeks after an optimistic shareholders' meeting in
which Tyler talked of a $A100 stock rather than $A10,
Solution 6 shares soared to $A17.70. Tyler's contract
states he must own 10% of available stock, meaning his
stake would have at that time been worth about $A230
million.

Meanwhile, a key executive in the multi-billion dollar
internet transaction deal involving Telstra, Solution 6 and
Sausage Software late last week told The Australian he
wanted to renegotiate his company's involvement. As a
preliminary to the Telstra/Solution 6 transaction, Sausage
has made a $A280 million takeover bid for Melbourne's SMS
Consultancy.

But in the wake of a 43% slump in Sausage's share price,
SMS is almost certain to demand the deal be repriced as, at
present share prices, it values SMS at only $A160 million.
Without SMS, it's understood Sausage will be less
attractive to Solution 6.

Because the recent sharemarket correction slashed the value
of the businesses, Telstra, meanwhile, has been forced to
renegotiate its $A237 million sale of e-eommerce assets to
Solution 6. The company says the sale will proceed, albeit
at a lower price. (Independent Business Weekly   03-May-
2000)

SAUSAGE SOFTWARE: Board rejects takeover offer
----------------------------------------------
Sausage Software Ltd said its board has rejected the
current takeover offer by Solution 6 Holdings Ltd.

In a statement to the stock exchange, the Sausage Software
board cited recent market volatility, among other events,
as a major reason for its decision not to recommend
Solution 6's bid to shareholders.  Sausage said the bid
"significantly undervalues the company" and it has been
informed by shareholders, who together control more than 20
pct of the company, that they will not be accepting the
offer.

Sausage did not mention what other factors contributed to
its decision, but recent media reports that Solution 6
chief executive Chris Tyler has previously been convicted
of drug offences and was involved in one of Canada's
fastest corporate bankruptcies, have undermined market
confidence in the deal.

Under the initial terms of the offer announced in March
this year, Solution 6 offered six of its shares for every
10 Sausage shares.  Since that time the shares of both
companies have declined sharply. Within days of the offer
being announced Sausage shares traded as high as 8. 20
aud and Solution 6 reached 17.20 aud.

At 11.20 am, Sausage was up 0.30 aud at 2.65 and Solution 6
was up 0.02 at 3.90.  (AFX News Limited  05-May-2000)


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

CHEUNG KONG: Moody's now downgrades
HUTCHISON WESTPORTS: Moody's now downgrades
HUTCHISON WHAMPOA: Moody's now downgrades
-------------------------------------------
Only a day after being put on credit watch by Standard &
Poor's, Hutchison Whampoa, Hong Kong's biggest
conglomerate, has been downgraded by Moody's Investor
Service to "negative" from "stable."

Moody's downgrading reflects credit agencies' continuing
concerns about the telecom sector.  In adjusting
Hutchison's outlook, Moody's used the same reason as S&P _
the purchase of a stake in a joint venture with Telesystem
International Wireless (TIW) for the development of third-
generation universal mobile telecommunications systems (3G
UMTS).

Meanwhile, S&P also placed Cheung Kong, of which Hutchison
owns 49.9 per cent, and two Hutchison's subsidiaries,
Hutchison Ports and Hutchison Westports, on "creditwatch"
with negative implications yesterday. Hutchison spent 4.4
billion (HK$52.86 billion) for a 90.1 per cent stake in the
joint venture, and will bid against 11 other candidates for
a 3G mobile phone licence in Germany. It is also expected
to compete for a licence in Hong Kong.

Moody said Hutchison's engagement in the 3G mobile market
shows a "higher-than-expected risk appetite for business
opportunities in the telecommunications sector, which may
lead to higher risks in its financial profile."

Moody's downgrade did not come as a surprise. Rating
agencies appear to be taking a much more critical look at
the telecom sector, and the big-ticket investments some of
them are making.

On Tuesday, Australian telecom giant Telstra Corp was
downgraded by both Moody's and S&P, citing its A$6.5-
billion investment (US$3billion) tie-up with Pacific
Century CyberWorks. Hutchison's outlook was downgraded last
year by both credit agencies on the back of its investment
in Voicestream, a mobile phone company.

Credit agencies' "distaste" for data communications and
wireless services is justified by the huge amount of up-
front investment required in these sectors with relatively
uncertain returns.

"Stable operating cash flow generation from the new
investments is not expected in the near to medium term, and
significant investment in infrastructure is likely to be
required," S&P said.

Moody's said "the potentially higher financing requirements
required to expand in the fast changing and highly
competitive industry, coupled with uncertain cash
generating, may increase the financial risks of the
company."

A downgrade on credit rating could raise a company's
funding costs. Telstra said yesterday that the cut in its
credit ratings was likely to cost it A$10 million a year in
higher interest payments as S&P lowered its long-term
credit rating to "AA" from "AA+" and placed the ratings on
credit watch with negative implications, according to a
Reuters report. (Hong Kong Standard  05-May-2000)

SHOUGANG CONCORD INT'L: Posts annual loss
-----------------------------------------
Shougang Concord International, the listed flagship of
mainland steel giant Shougang, posted a loss of HK$652.76
million for the year to December.

The red chip was hit during the year by provisions for bad
debts, disposal of loss-making assets and a steel industry
slump.  In 1998, the company had a loss of HK$413.82
million mostly because of provisions for bad debts.

Its associate Shougang Century Holdings posted a smaller
loss of HK$65.61 million, against the net loss of HK$196.72
million in 1998, while other member Shougang Concord Grand
Group reported a 9.99 per cent fall to HK$18.18 million in
its profit.  Nonetheless, Shougang Concord Technology
Holdings achieved a significant improvement, by posting a
30.4 per cent rise to HK$26.13 million in net profit.

During the year, Shougang Concord International made
HK$109.93 million provisions for bad debts.  It had an
operating loss of HK$266.6 million, which included the loss
incurred from the sale of its 25 per cent loss-making bulk-
carrier Associated Bulk Carriers to Peninsular & Oriental
Steam Navigation.

In the year, the company also made a loss of HK$97.6
million, partly arising from the sale of its stake in
Shougang Technology to Shougang Grand.  Last June, Shougang
Concord International sold its 46.7 per cent stake in
Shougang Technology to Shougang Grand for HK$163.6 million
as part of the whole group's scheme to streamline its
corporate structure.  The scheme was aimed to secure better
financial support for its member companies.

Shougang Concord International said its results were also
hit by the disappointing steel industry last year, but the
company expects to see an improvement this year amid the
recovery of steel prices.  Loss per share was 35.3 HK
cents, against 23.2 HK cents the previous year. Directors
did not declare any dividends.

Shougang Century, a minerals and metals trader, reported a
turnover of HK$227.12 million. This represented a 76.45 per
cent fall compared with HK$964.7 million in 1998. Loss per
share was 8.57 HK cents, against loss per share of 25.7 HK
cents a year before. The company said it would continue to
dispose of the non-core business and assets to improve its
financial position.

Shougang Century said it would also start cutting costs and
concentrate on its financial resources to develop its core
businesses of manufacturing steel cord and trading copper
and brass products.  In December, the company discontinued
electrical wire processing by disposal of the business, in
view of the gloomy prospects of the electrical wire
processing sector amid intense price competition.

Last month, the company revealed it has agreed to dispose
of its 26 per cent of Shanghai Shenjia Metal Products as
part of its sale programme.  During the year, Shougang
Century's gearing ratio fell to 33 per cent from 63 per
cent in December 1998.

Turnover of telephone maker Shougang Technology rose to
HK$742.58 million, up from HK$649.51 million.  Operating
profit declined to HK$343,000 from HK$3.47 million and
associated income rose to HK$30.67 million from HK$18.99
million. Earnings per share were 3.3 HK cents, up from 2.5
HK cents.

Shougang Grand, engaged in property investment and
development and financial services, posted a turnover of
HK$24.78 million. This represented a 40.3 per cent drop
compared with HK$41.53 million in 1998. Earnings per share
fell to 2.42 HK cents from 2.96 HK cents the preceding
year.  During the year, the company had a finance cost of
HK$6.65 million, significantly higher than 1998s HK$2.82
million.  (South China Morning Post  05-May-2000)

WHARF HOLDINGS LTD.: Loses appeal in U.S. court
-----------------------------------------------
Wharf (Holdings) Ltd. lost its appeal in United States
court in Denver, Colorado, which ordered the Hong Kong
conglomerate to pay US$125.5 million in compensation and
damages to United International Holdings Inc. in a legal
battle that has dragged on since 1993.

Wharf was ordered to pay US$67 million in compensation and
US$58.5 million is damages after the U.S. cable company
sued Wharf for breach of contract in 1993.

The Denver-based company said it helped Wharf prepare a
successful bid for the exclusive right to provide cable-TV
service to Hong Kong and claimed the company reneged on a
pact to allow it to buy a 10% stake in Wharf's Hong Kong
cable unit, i-Cable Communications Ltd., which it spun off
in November. Wharf said it is consulting with its lawyers
and may seek a reversal in U.S. Supreme Court and full
Court of Appeals. (The Asian Wall Street Journal  04-May-
2000)


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

BANK CENTRAL ASIA: IBRA to sell off assets
BANK DAGANG NASIONAL INDONESIA: IBRA to sell off assets
BANK DANAMON: IBRA to sell off assets
-------------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) will soon
sell the assets of former shareholders of liquidated banks
Bank Central Asia (BCA), Bank Dagang Nasional Indonesia
(BDNI) and Bank Danamon.

IBRA deputy head Mahmuddin Yassin said Wednesday the assets
of the former shareholders were now being managed by three
holding companies.  The three holding companies are PT
Holdiko Perkasa (BCA), PT Tunas Sepadan Investama (BDNI)
and PT Bentala Kartika Abadi (Danamon).

IBRA was also planning to sell a hotel resort covering 8.9
hectares in Jimbaran, Bali.  The assets managed by Holdiko
Perkasa, which will be sold, include Wisma BCA, Mosquito
Coils, Indomarco, a palm oil plantation, Sulftindo, an oleo
chemical plant, Bintan Resort, Indosiar TV Station and a
sugar refinery.

The assets under Tunas Sepadan Investama to be sold are
those of GT Tire, while the assets controlled by PT Bentala
Kartika Abadi cover some types of property.  Mahmuddin did
not specify the target of the sales, but indicated that it
would exceed the target of IBRA's contribution to the 2000
state budget.

Holdiko Perkasa's finance director Scott Coffey expressed
optimism that it would produce receipts around Rp2
trillion, with the biggest contribution being predicted to
originate from the palm oil plantation.  Commenting on
foreign investors' interest to invest in Indonesia,
Mahmuddin maintained that, from the economic point of view,
now was the right time to invest. Besides, IBRA and state
enterprises had also shown seriousness in trying to sell
their assets.

According to him, the investors were keenly interested in
financial assets, while assets in the real sectors should
first be transformed into financial assets through the
establishment of investment funds.  The IBRA official said
his agency would invite Danareksa to conduct coordination
for the purpose within one or two months.

He claimed that, in addition to Mid-East countries,
Malaysia, Brunei Darussalam and Singapore were also
interested in investing in Indonesia.  (Asia Pulse  04-May-
2000)

PT JOHN HOLLAND INDONESIA: Namprasert sheds coal mine stake
-----------------------------------------------------------
Namprasert Construction has agreed to sell its 50 per cent
stake in PT John Holland Indonesia to Leighton Asia for
A$282 million (Bt6.3 billion).

The proceeds will be used by the Thai firm to pay back some
of its debts following its recent debt restructuring.

PT John Holland Indonesia, a subsidiary of Australia's
Leighton Holdings, operates two coal-mining projects and is
the State Railway of Thailand's (SRT) contractor to replace
sleepers along 564 kilometres of track, construct new
sidings and improve stations and bridges.

The current work in hand is worth A$1.13 billion.
However, Namprasert will remain a subcontractor for the SRT
project even though it is no longer a major shareholder in
the company that won the contract.

In Indonesia, PT John Holland's projects include the Sebuku
coal mine project in which the firm has a five-year
contract for design, construction, operation and
maintenance of a coal preparation plant and coal handling
facilities. The other operation involves mining 40,000
metric tonnes of coal a month for five years in the Malinau
coal mine.

An industry source said Namprasert and Kasemkij
Construction had finalised their debt-rehabilitation plans
under the Bankruptcy Court in March this year. The plans
included asset sales to repay debts and rescheduling of
debt payment.

By investing in the stake in John Holland, Leighton Asia
will be able to establish a presence in that market. It
would also gain more infrastructure experience via the SRT
contract, according to Leighton Asia managing director John
Faulkner. (The Nation  05-May-2000)

PT KELIAN EQUATORIAL MINING: Protests halt operations
-----------------------------------------------------
A gold mining subsidiary of British Petroleum (BP) Amoco
has been forced to stop operations in East Kalimantan by a
group of local protestors who blocked the road, barring the
transport of supplies to the mining location.

PT Kelian Equatorial Mining (KEM) had stopped operation
since April 29 as the miners were running out of fuel and
other provisions, an official of Rio Tinto, another
shareholder of KEM, said in Jakarta. A government official
said the local people were demanding recognition of their
rights over the land and the mines. (Asia Pulse  04-May-
2000)

PT OMETRAO CORP: IBRA asks Supreme Ct. for review
PT SUMI ASIH: IBRA asks Supreme Ct. for review
-------------------------------------------------
The Indonesian Bank Restructuring Agency said it has
requested the Supreme Court to review the Jakarta
Commercial Court's decision to reject the bankruptcy
litigation filed by IBRA against PT Ometraco Corporation
and PT Sumi Asih.

IBRA's lawyer in the Ometraco case, Benny K. Harman, said
IBRA decided to appeal to the supreme court because it
could not accept the commercial court's decision that, as a
company under liquidation, Ometraco cannot be declared
bankrupt by third parties.

"It was a misinterpretation of the law on limited liability
companies," Harman said.

He said the law does not mention a liquidated company
cannot be declared bankrupt, only the procedures that
should be followed by a liquidator.

"Moreover, our application was filed on March 29 while the
Ometraco liquidation was announced on April 12. So, the
litigation was legally valid," he said.

He said IBRA has also distributed copies of the appeal to
the Supreme Court and other creditors of Ometraco,
including American Express Bank (Singapore), Fuji Bank
International Indonesia (Jakarta), the Commercial Bank of
Korea (Singapore), Overseas China Banking Corporation Ltd
and Royal Bank Canada.  Copies of the appeal to the Supreme
Court on the Sumi Asih case have also been distributed to
other creditors including Standard Chartered Bank
(Jakarta), HSBC (Jakarta) and Merincorp (Jakarta).  (AFX
News Limited  05-May-2000)

PT PEMBANGUNAN PERUMAHAN: Selection as builder prompts ire
----------------------------------------------------------
A private construction firm Saturday protested city-owned
market operator PD Pasar Jaya's decision to appoint a
state-owned construction firm to rebuild gutted Glodok
market in West Jakarta.

PT Bangun Cipta Kontraktor (BCK), said state-owned PT
Pembangunan Perumahan, was ineligible to bid for the
project because it had not settled its debts with the
Indonesian Bank Restructuring Agency (IBRA).

"PT Pembangunan Perumahan had to settle debts of some Rp
8.8 billion (US$1.1 million) before it could join the bid
for the project," company executive Triadi Abimanyu said at
a media conference.  "How can a company, which is under the
agency's supervision, win the bid? We demand PD Pasar Jaya
cancel its decision."

Pasar Jaya's director Syahril Tanjung announced last Monday
the awarding of the project to Pembangunan Perumahan, which
bid Rp 42.61 billion.  It was the lowest among the bidders,
followed by state-owned construction firm PT Adhi Karya (Rp
42.8 billion) and BCK (Rp 45.4 billion). The owner's
estimate was Rp 50.2 billion.

PD Pasar Jaya stipulated in its invitation to bid late last
year that bidders were excluded if they were on the
agency's debtors list.  Triadi said he filed suit at the
Jakarta State Administrative Court (PTUN), challenging PD
Pasar Jaya's decision to appoint PT Pembangunan Perumahan.

"We received the court's pretrial verdict on Friday
ordering PD Pasar Jaya to stop all of its activities on the
Glodok market project while the court investigates the
case," Triadi said. "We also asked the court to appoint PT
Bangun Cipta Kontraktor as the project's bid winner as we
are not included in IBRA's list of debtors."

He said PT Adhi Karya was also included on IBRA's list of
debtors.  Glodok market was one of six city-owned markets
destroyed in the May 1998 riots which were earmarked for
reconstruction. The others were Palmerah market in Central
Jakarta, Perniagaan market in West Jakarta, Cipete and
Pasar Minggu markets in South Jakarta, and Cempaka Putih
market in Central Jakarta.

The other markets have been renovated, except for
Perniagaan whose operation was subsequently considered no
longer feasible. The renovation of the markets was funded
with a Rp 60 billion special loan from the Ministry of
Finance, as ordered by then president B.J. Habibie after he
visited the markets on May 26, 1998.

City councillor Santayana Kiemas of the Indonesian
Democratic Party of Struggle (PDI Perjuangan) faction, who
was also present at the media conference, said his faction
challenged the use of the special loan to rebuild the
Glodok market, which is located in Chinatown in Kota.

"The Glodok market has high commercial potential. Why don't
we invite private investors to rebuild the market? I'm sure
a lot of interested parties will bid for the project," he
said.

PD Pasar Jaya suffered Rp 56 billion in losses when 13 of
its 152 markets suffered various degrees of damage in the
rioting and looting. (Jakarta Post  02-May-2000)

PT TIMOR PUTRA NASIONAL: Gov't to take over
-------------------------------------------
The government will take over the holdings of Hutomo
"Tommy" Mandala Putra, the son of former president Suharto,
in car producer PT Timor Putra Nasional, Industry and Trade
Minister Luhut Panjaitan said.

Asked at the state palace whether the government will take
100 pct ownership of Timor, a technically bankrupt joint
venture with Kia Motors Corp, Panjaitan said: "Yes, that's
right."  

However, he added that the proposal is still awaiting input
from the Indonesian Bank Restructuring Agency (IBRA), which
is handling Timor's debt.

"At the moment we are still awaiting technical negotiations
with IBRA which I think will be held today," Panjaitan
said.  He gave no details on proposals for the debt
restructuring.  (AFX News Limited  04-May-2000)


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

DAIICHI MUTUAL INSUR.CO.: FSA chief tries to quell panic
--------------------------------------------------------
Fearing panic among customers of other midsize insurers
upon news that troubled Daiichi Mutual Fire & Marine
Insurance Co. was ordered by the government Monday to
partly suspend its operations, Masaharu Hino, head of the
Financial Supervisory Agency (FSA), is assuring the public
that no other companies are in danger of failure.

He urged Daiichi policyholders to keep a cool head,
emphasizing that most contracts will be fully covered -- at
least for a certain period.  The dramatic order to Daiichi
came after the company informed the government that it had
abandoned its rehabilitation efforts.  Inevitably, the
impending failure will hurt many Daiichi policyholders
financially, industry sources said.

In the case of Toho Mutual Life Insurance Co., which failed
in June last year, dividends for an insurance policy with a
long-term maturity -- ominously similar to Daiichi's main
products -- were slashed by a staggering 82 percent when GE
Edison Life took over Toho.

Authorities are set to probe Daiichi's management after
President Koichi Hirai acknowledged Monday that the company
had window-dressed profits "within the law" in the past in
an attempt to keep the insurer afloat. Hirai announced his
company's demise during a news conference held at 9 a.m.
Monday, following an emergency meeting of directors held at
around 1 a.m. the same day at Daiichi's headquarters in
Tokyo's Chiyoda-ku.

"I'm really at loss to find an excuse ... we didn't have
the ability to make use of our funds properly," Hirai said
in admitting defeat. He also said all board members would
resign to take responsibility.

The company had incurred a massive 48.8 billion yen deficit
as of the end of March, with Daiichi Mutual's solvency
margin, an index for insurance companies' ability to pay
insurance, dropping to a perilous minus-160 percent. A
healthy insurer must have a solvency margin of plus-200
percent or over.

In response, the FSA banned Daiichi Mutual from taking new
insurance contracts and canceling existing policies. The
agency has appointed the Marine & Fire Insurance Assn. of
Japan, accountant Yoshihiro Masago, and lawyer Ryota
Yamagishi to find another company, probably a European
insurer, to take over Daiichi Mutual's insurance contracts.

The financial watchdog will also demand that the
administrators set up an independent committee to probe the
insurer's management. The investigation will be with a view
to proving the Daiichi brass' criminal
liability over the possible window-dressing of account
reports.

Daiichi Mutual, which was established in 1949, is the first
nonlife insurer to collapse since the end of World War II.
The company will honor insurance payments for all existing
policies until March 2001, but thereafter, there may be a
10 percent cut for most contracts, except those for
automobile liability and insurance against earthquakes.

It is also expected that the failure means holders of the
company's main policy product, high-interest long-term
insurance policies with a five to 10-year maturity, will
suffer a minimum 10 percent cut in dividends.  Further
drastic cuts in dividends are a strong possibility if
administrators decide to cut the interest rate for long-
term policies.

The move would ease pressure on any company that takes over
Daiichi's operations. Under the Insurance Business Law,
Daiichi policyholders won't be allowed to annul their
contracts until a company to take over the contracts is
found. A hefty penalty will be imposed for annulling
policies once the new company moves in.  (Mainichi Daily
News  02-May-2000)


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

DAEWOO GROUP: Decision time for Daewoo bankers
----------------------------------------------
The debt restructuring at Korea's giant Daewoo Group will
take a significant step forward in the next few days, but a
neat resolution of the tens of billions of dollars owed to
creditors may still prove elusive, bankers say.

Some 200 foreign lenders will soon receive a complicated
buyout proposal, offering them an average of 40 cents for
each dollar they lent to any of the main four Daewoo Group
companies. The four separate deals involve between $4
billion and $5 billion of the unsecured debt of Daewoo
Corp, Daewoo Heavy Industries Co., Daewoo Motor Co., and
Daewoo Electronics Co.

The foreign creditors will have 30 days from the time they
receive the offer in which to decide whether to join the
buyout, which was hammered out by three banks heading their
steering committee: HSBC Holdings PLC, Chase Manhattan Bank
and Bank of Tokyo-Mitsubishi Ltd. Those banks will soon
begin a roadshow aimed at convincing other creditors to
support the deal.

The Daewoo restructuring is by all accounts the world's
largest. Estimates of the group's total indebtedness range
from $45 billion to more than $70 billion; it is one
indication of the messiness of the situation that nobody
knows for sure.

"Nobody is happy," says a member of the steering committee.
"But it is economically more rational than any other
alternative. There is no way to get anything sweeter."

The situation is a reminder of how little leverage banks
have with their largest borrowers, particularly when the
bankers' own interests are diverse.

The proposal will go into effect only if an overwhelmingly
large share of the holders of the debt approve; the
complicated formula requires the support of essentially 90%
of the value of the debt for each Daewoo company, after
making some deductions. Moreover, the deals are on a
company-by-company basis.

For example, creditors of Daewoo Corp., which accounts for
more than $3.5 billion of the total that Daewoo Group owes
the foreigners, are being offered less than 30 cents on the
dollar. And the plan could be approved and go into effect
for some of the Daewoo companies while being rejected for
others.

Bankers grumble that part of the problem is that with
Korea's April elections out of the way, the government
feels little urgency to encourage a speedy settlement. But
the larger problem, as many bankers themselves concede, is
the lack of unity among the foreign creditors.

The banks differ widely in their interests and in their
circumstances. Some have given loans on the basis of
specific collateral to group companies that were better
endowed, while other banks lent without any security.

Banks with weaker claims have argued, unsuccessfully, that
the settlement should be on a consolidated basis, while
those with stronger claims have resisted.  Banks' exposure
to Daewoo also varies widely. Chase Manhattan Bank has
already written off much of its hundreds of millions of
dollars in loans to Daewoo, and most of HSBC's total Korea
exposure of HK$19 billion (US$2.44 billion) as of year-end
1999 is related to Daewoo. Other banks have lent far less.

"The only way to really have an impact is through
collective action, and that isn't about to happen," says
the member of the steering committee. "They can make us
accept this ridiculous offer because they know that."

If creditors elect not to go along with the settlement,
they can pursue their claims through the courts or join the
Korean bank creditors' workout, an alternative that
involves suspending claims for at least five years and
extending new money.  That's not exactly appealing --
bankers estimate the liquidation value of Daewoo Corp. is
pennies. But members of the steering committee suggest that
some Daewoo Corp. creditors may balk, nonetheless.

"A lot of banks may decide not to take it," says the
representative of one European bank on the steering
committee. "When you are talking about only accepting 30
cents, there isn't a lot of downside."

Daewoo isn't the only stumbling block for the foreign banks
in Korea as they struggle to put the Asian financial crisis
behind them. Many foreign banks lent to leasing
subsidiaries of Korean banks, and those foreign banks say
the Korean banks are now attempting to walk away from the
debts of majority-owned leasing companies. That is
particularly frustrating because generally, banks have
higher expectations when they lend to financial
institutions than to nonfinancial companies. (The Asian
Wall Street Journal  04-May-2000)

DAEWOO MOTOR: Ford pledges to outbid GM  
---------------------------------------
Escalating competition with General Motors for the control
of Daewoo Motor, Ford Motor yesterday reiterated its
determination to buy the ailing Korean automaker in a press
conference in Seoul.

Wayne Booker, vice chairman of Ford Motor, said that Daewoo
Motor is indispensable to Ford as "the engine for growth"
in Asia and Eastern Europe.

"Ford intends to expand Daewoo's sales both in Korea and
internationally, while promoting its separate Korean
identity," said Booker in a press conference at the Westin
Chosun in downtown Seoul.

He stressed that Ford is strongly committed to protecting
the interests of Daewoo's workers and parts suppliers and
transferring cutting-edge automobile technologies to the
Korean firm.  But he refused to reveal the price and other
takeover terms in the Daewoo bidding, raising questions
over Ford's real intentions to buy the automaker. He also
hinted at a possible alliance with Korean firms in the
Daewoo bidding, but declined to elaborate.

Booker, who also directed Ford's unsuccessful drive to buy
Kia Motors in 1998, met the Daewoo Group's chief
restructuring planner Oh Ho-keun, officials of the Korea
Development Bank, a creditor bank of Daewoo Motor, and
Financial Supervisory Commission officials to explain
Ford's acquisition plan.

Earlier on Monday, Rudy Schlais, head of GM's Asia-Pacific
operations, said in a news conference in Seoul that GM is
the best partner for Daewoo Motor.  The top GM and Ford
executives are in Seoul to attend the Korea Import Motor
Show 2000, which opened to the public yesterday for a one-
week run.

An official from the Korea Automobile Importers and
Distributors Association (KAIDA) said that the show
organizers are worried that the competition for Daewoo
Motor may overshadow the motor show. (The Korea Herald  05-
May-2000)

DAEWOO SECURITIES: KDB agrees with Gov't to take over
-----------------------------------------------------
Korea Development Bank (KDB) reached an agreement with the
Financial Supervisory Commission to buy a controlling stake
in Daewoo Securities Co. yesterday, a bank official said.

"KDB has decided to take over Daewoo Securities in line
with its long-term management strategy," the official said.

The agreement calls for the state-run bank to acquire a 25
percent stake in Daewoo Securities through the purchase of
Daewoo's 30.98 million shares unsold in a recent rights
offering, becoming the largest shareholder.

Details of the agreement, including takeover price, were
not disclosed. However, the official added that the bank
plans to call a board-of-directors meeting this month to
approve the deal.

KDB will make efforts to put the nation's largest
securities company back on track as early as possible,
while it will seek to form partnerships with foreign
brokerage houses or investment banks, he said.

The state-run bank will also put professional managers at
the helm of Daewoo Securities, giving them maximum autonomy
to develop Daewoo into an international securities company,
he said.   The acquisition of Daewoo Securities is also
expected to help KDB strengthen its plans to meet diverse
needs of corporate customers and bolster the bank's
competitiveness, the official added.

In addition, he expected the takeover to serve as a
catalyst for easing financial market instability stemming
from the ailing investment trust industry.  After acquiring
Daewoo Securities in September last year and separating it
from the failed Daewoo Group, creditor banks had been
seeking to sell the securities company to normalize its
operations. (The Korea Herald  05-May-2000)

MIDOPA DEPT.STORE: Main store put up for sale to foreigners
-----------------------------------------------------------
Midopa Department Store is attempting to sell off its main
store in Myongdong, central Seoul, to a foreign investor.

Currently, the department store is under court
receivership. A company official said the sale of the
Myongdong store, called Metro, is part of its efforts to
normalize management.

"If the Myongdong main store is sold as scheduled, the
company will be able to graduate from court receivership in
three years," he said.

In a separate move, Korea Asset Management Corp. (KAMCO)
plans to sell off part of its holdings of non-performing
bank loans extended to Midopa.  KAMCO has acquired from
banks more than half of their non-performing loans provided
to Midopa which total 1.2 trillion won in face value,
including payment guarantees the department store provided
to sister firms. (World Reporter  03-May-2000)


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

NESTLE (M) BHD: Restructuring will not affect profit levels
-----------------------------------------------------------
Malaysia will not lose out in the restructuring of Nestle
(M) Bhd's manufacturing facilities as it still has "unique
attributes" which can contribute positively to the
company's profitability.

Managing director Jose Lopez has identified tremendous
business opportunity in the Government's current initiative
to make Malaysia a hub for halal products.

"All our products are halal, and this paves the way for us
to tap into the (overseas) halal market. Halal implies a
very disciplined and structured manufacturing process,
which includes hygenic requirement, thus giving us a
quality level that makes our product competitive. This will
enable us to tap into a new set of customers, especially
the Middle East markets," he said.

Malaysia's other strong points, he added, include its
manufacturing capabilities, know-how and employees'
competence.  Nestle Malaysia had announced on April 13 that
restructuring of its local operations was inevitable due to
the impact of trade liberalisation, which might jeopardise
its position to be internationally competitive.

Following the restructuring of its manufacturing
facilities, the company plans to increase its production
capacity of cereals and Milo to meet increasing demand in
both the domestic and export markets.  An additional
investment of RM30 million has been set aside for the
production of cereal, while that of Milo has yet to be
finalised.

However, the manufacturing of "reconstituted" sweetened
condensed milk and beverage creamer at its Petaling Jaya
factory, will be terminated effective Sept 1 this year.
Nestle Malaysia, will however, continue to market both
products under the present names of Milkmaid and Teapot by
sourcing them from manufacturing centres within the Nestle
Group.

Speaking to reporters after the company's annual general
meeting in Petaling Jaya, Lopez said currently sales from
the export markets amount to seven per cent of the group's
turnover.

"We see the figure growing to 10 per cent over the next
three years," said Lopez. "We are also working hard to push
a higher volume of products from the confectionery range to
untapped markets like the United States and Latin America."

To date, Nestle Malaysia exports some 300 products to more
than 40 countries.  Its major export markets include
Singapore, Hong Kong and Taiwan, which consume a large
quantity of its culinary range products, particularly
sauces.

On a similar development, Lopez said the 134 management and
non-management staff affected by the closure of its
condensed milk and sweeteened beverage creamer production
lines "have fully understood" the need for the company to
undertake the rationalisation exercise.

"The company has done everything it could to minimise the
negative impact on them," he said. "The announcement has
been very well-received once they have saw the kind of
packages and solutions the company has offered them."

For the financial year ended Dec 31, 1999, the Nestle
Malaysia Group posted a 79 per cent jump in its pre-tax
profit to RM242.7 million from RM135.3 million previously.
Its group's turnover, however, declined marginally to
RM1.95 billion from RM1.98 billion the year before. A final
tax exempt dividend of 75 sen per share has been declared
in the year under review, compared to 53.8 sen per share in
1998. (Emedia  05-May-2000)

SANDA INDUSTRIES: Plans share issue to settle debts
---------------------------------------------------
Sanda Industries Bhd has proposed a settlement of debts
owing to certain lenders of the group by the issuance of
19.441 million new ordinary shares of RM1 each at an issue
price of RM1 per settlement share.

At the same time, the company has also proposed to issue
558,573 new ordinary shares of RM1 in Sanda at an issue
price of RM1 per new share to partially meet the costs of
the debt settlement proposal, Commerce International
Merchant Bankers Bhd said in a statement on behalf of
Sanda.

Under the proposed debt settlement, each of the lenders has
agreed to accept such number of settlement shares as is
equivalent to the lenders' respective debts divided by the
issue price of RM1 per settlement share, in satisfaction of
their respective debts, and to waive all interest accruing
on their debts after March 31 1999.

The lenders are Pengurusan Danaharta Nasional Berhad,
Bumiputra-Commerce Bank Bhd, Malaysian International
Merchant Bankers Bhd (MIMB), Credit Corp Malaysia Bhd (CCM)
and Oriental Bank Bhd (OBB).

As a condition of the lenders' acceptance of the proposed
debt settlement, Sanda has agreed to act as agent for each
of the lenders to procure purchasers for the settlement
shares allotted to them pursuant to the debt settlement and
thereby raise an aggregate net cash amount of not less than
the respective debts owed to each lender.

This proposal is to provide full settlement of the
financial obligations of Sanda's subsidiaries - Sanda
Plastics Sdn Bhd and Vital Universal Sdn Bhd to the
lenders. The debts included in the debt settlement have
been outstanding and were already in default as at March 31
1999.

Moreover, this proposal will enable the management of Sanda
to focus on, reorganise and strengthen the financial and
operational viability of the Sanda group after the
completion of the recent 'rescue exercise' by Sanda wherein
Sanda acquired the entire equity interest in Focal Aims
Properties Sdn Bhd.

To add to this, the debt settlement exercise will improve
the cashflow position and reduce the gearing of the Sanda
group. Through the issuance of 558,573 new shares Sanda
will be able to raise funds to partially meet the costs of
the debt settlement proposal and at the same time eliminate
the potential odd lot issues that may arise from the debt
settlement proposal.

Following this, Sanda proposes to transfer its listing to
the main board of the Kuala Lumpur Stock Exchange from the
second board. This is to enhance the profile of the company
and possibly enhance the credit standing of Sanda, as
companies listed on the main board of the Kuala Lumpur
Stock Exchange are perceived to have better corporate
reputation and image.

The current issued and paid-up share capital of Sanda is
RM233.317 million arising from the completion of the Focal
Aims acquisition, and the discharge of shareholders' loans
and advances made to Focal Aims and its subsidiaries
amounting to RM50 million, as the consideration for the
issuance of 50 million new ordinary shares of RM1 each in
Sanda at RM1 per share.

Upon completion of the proposed debt settlement, the
enlarged issued and paid-up share capital of Sanda would be
RM253.317 million. This is invariably a large share capital
as compared to the minimum issued and paid-up share capital
of RM60 million allowed for companies seeking listing on
the main board.

As such, Sanda wishes to obtain a listing status on the
main board which is more commensurate with its enlarged
issued and paid-up share capital.  Save for the interest
savings on the respective bank borrowings of the Sanda
group arising from the proposed debt settlement, the
proposal is not expected to have any other material effect
on the earnings of the Sanda group for the financial period
ending September 30 2000 (assuming that the financial year
end of Sanda is changed from 31 December to 30 September
commencing from the year 2000).

Net tangible asset per share is expected to increase to 93
sen, after the proposal, from 92 sen as at December 31 1999
while gearing is expected to reduce to 0.37 times from 0.49
times as at December 31 1999. (Business Times  04-May-2000)

TIME ENGINEERING.: Deal with SingTel valid till May 11
------------------------------------------------------
Time Engineering Bhd yesterday said the validity of the
preliminary agreement between the company, Renong Bhd and
Singapore Telecommunications Ltd (SingTel) has been
extended to May 11.

In a statement, Time Engineering also said it has requested
the Sapura group to submit a final and detailed proposal
for the restructuring of the Time group of companies to
enable its board to reach a decision.  Time said the
request to Sapura "made clear that the detailed proposal
must be comparable" to its own restructuring plan.

The request also emphasised the severe time constraints
facing the Time group in obtaining approval from creditors
and shareholders for its own restructuring plan, it added.
The heads of agreement deal between Time, Renong and
SingTel was announced on April 7 and had carried a 30-day
validity period.

Separately, the New Straits Times (NST) yesterday quoted
industry sources saying that Sapura Holdings Bhd had
apparently received enough creditors' approval to block
Time's debt restructuring proposal. For Time's proposal to
go through, 75 per cent of the creditors must vote in its
favour. Sapura is said to have got at least 26 per cent of
the creditors in its corner, NST said in its report.

The creditors are due to meet on June 8 to evaluate the
Time scheme. Sapura had made a last-minute alternative bid
to Time's debt restructuring proposal that would have seen
SingTel entering the Malaysian market.

Time is reported to be RM3.99 billion (S$1.8 billion) in
debt, and had together with the Corporate Debt
Restructuring Committee come up with its own debt
restructuring scheme. In it, SingTel will buy 14.6 per cent
in Time, and 20 per cent each in Time dotCom Bhd and Time
Online Sdn Bhd.

But NST said that it is understood that Sapura, after
initial discussions with secured creditors, had tentatively
received creditors' approval for its own scheme. Sapura's
scheme involves a debt to equity conversion which will see
creditors receiving cash as well as 39 per cent in Time
dotCom after its listing.

Once Time's proposal is blocked, Sapura will then
officially have an opportunity to address the creditors to
explain the workings of its scheme, NST said. The creditors
will then vote on its acceptability.  Like Time, Sapura
will then need the approval of 75 per cent of the
creditors. (Business Times  05-May-2000)


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

ASB GROUP: Granted debt relief
------------------------------
The Securities and Exchange Commission (SEC) granted
yesterday a 60-day debt reprieve to debt-saddled property
developer ASB Group of Companies whose obligations to banks
and other creditors have reached P12.7 billion.

At the same time, the SEC appointed former SEC commissioner
and former Petron chairman Monico V. Jacob as interim
receiver of the company.   The SEC, in its order, also
stopped ASB from disposing of its properties in any manner,
except in the ordinary course of its business and from
making any payments of its liabilities. The SEC has also
set a hearing on May 22 for the creation of the
rehabilitation receiver and a management committee.

Most of ASB's projects were financed with loans or
borrowings from bank and individual creditors.
The ASB Group expressed hope that their move to elevate the
matter to SEC will result in an orderly and equitable
manner of repayment to all those who have placed their
trust in the company.  An ASB spokesman reiterated the
Group's commitment to honor all its obligations and to
resolve this matter in the earlier possible time.

"The institution of extra judicial and judicial foreclosure
proceedings and the filing of court actions against (ASB
Group) will necessarily result in the paralyzation of its
business operations and its assets being lost, dissipated
or wasted," the ASB Group said in its petition.

Despite possessing property worth PhP19.21 billion ($0.465
billion), or more than enough to cover its obligations, the
realty firm feels it will be unable to pay its obligations
within a year's time because of "massive withdrawal by
creditors of their loans, coupled by the...glut in the real
estate market, the severe drop in the sale of real
properties and decreased investor confidence."

"There is a clear, present and imminent danger that the
creditors...will institute extra judicial and judicial
foreclosure unless restrained by the (SEC)," the ASB Group
said.

The ASB Group has between PhP8 billion ($0.194 billion) and
PhP10 billion ($0.242 billion) in "direct borrowings" from
individuals and creditor banks.  Of this amount, about PhP3
billion ($0.073 billion) to PhP4 billion ($0.097 billion)
are owed to three to four mostly Chinese-Filipino
investors. Most of the loans are secured by real estate
assets.

Meanwhile, along with its petition for a suspension of
payment, the ASB Group submitted a rehabilitation plan that
calls for the disposal of some assets amounting to PhP10
million ($0.242 million) through dacion en pago, or payment
in kind, with creditor banks and other individual
creditors, among others.

Under the interim rehabilitation plan, payment to creditors
will be made on a pro rata basis on or before July 28 this
year.  According to the ASB Group, however, a more detailed
and comprehensive rehabilitation proposal will be presented
within the next few weeks. This may call for a strategic
alliance with third party investors, including joint
ventures and similar arrangements.

In the meantime, it asked the SEC for time to work out the
final terms of the rehabilitation plan and to enable the
company to continue with its operations, unimpeded and free
from interference from its creditors.  In its order, the
SEC said the ASB Group's petition is "sufficient in form
and substance" and has set a hearing on May 22 to discuss
the merits of the case.

The ASB Group is composed of ASB Holdings, Inc.; ASB Realty
Corp.; ASB Development Corp.; ASB Land; and ASB Finance and
its allied companies -- Makati Hope Christian School, Bel-
Air Holdings Corp., Winchester Trading, Inc. VYL
Development Corp., Gerick Holdings Corp. and Neighborhood
Holdings, Inc.

The ASB Group is the owner and developer of numerous real
estate projects, mostly condominium projects, of which 19
are completed and four, particularly the BSA Twin Tower,
Garden Heights, the ASB Malayan Tower and Legaspi Place,
are currently under various stages of construction.
(Business World, Philippine Star  05-May-2000)

FAIRMART DEPT.STORE: To cease operations May 14
-----------------------------------------------
The 22-year-old Fairmart department store on
Colon st., Cebu city, will cease to operate on May 14.

Fairmart Cebu store area manager Danilo Patalinghug told
reporters that store operator Fair Group headed by Danilo
Velasco had already filed a notice of closure with the
Department of Labor and Employment-7 and the Securities and
Exchange Commission.

He said the management planned to reopen this year, but
that the operations would be assumed by Plaza Fair, which
is also operated by the company.  The affected employes
will be paid the corresponding separation pay depending on
their length of service to the company, he assured.

According to Patalinghug, many factors forced the owner to
close the store. One of these is the store's deteriorating
sales due to the presence of malls, which offer customers a
"one-stop-shop experience."

"Our target markets were the class A and B. But the malls
have already eaten up almost 100 percent of that market,"
he said.

The employes' organization of a union, which has been
demanding an increase in their salary despite the store's
financial losses, is another reason for Fairmart's closure.
Patalinghug said this was why the management did not
promise the workers that they would be a priority if the
store reopened.

The building rental has also added to the financial burdens
of the company, he said.  Although fair Group owns the
building, the firm has been renting it since 1997 in
addition to paying rent for the land because the
management had entered into a build-operate-transfer
agreement with the landowner before the construction of the
building.  According to the agreement, the building will be
turned over to the landowner after 20 years, he said.

In a report, Velasco revealed that Fair Group planned to
open several Fairmart branches nationwide to foreign
investment.  President Estrada signed the retail Trade
Liberation Law, which allows foreign investment in the
retail industry, last March.

Fair Group will also tie up with Hong Kong-based Eton
Group, which is headed by Lucio Tan, in putting up a
shopping mall in Dalian, China, according to the report.  
(RP Business News  04-May-2000)

PEARLBANK SECURITIES: Denies owing Wincorp a cent
-------------------------------------------------
Pearlbank Securities of fertilizer king Manuel Tan
yesterday reiterated it does not owe a single centavo to
Westmont Investment Corp., an investment house formed by
former finance secretary Edgardo Espiritu and his business
allies.

In a statement, PearlBank dared Wincorp to open its books
to regulators and let the records speak for themselves.
On March 8, Wincorp denied central bank examiners access to
its books and transaction records. The Bangko Sentral ng
Pilipinas was trying to validate reports that Wincorp
violated banking laws by accepting deposits and lending
funds without authority or license from the BSP.

Earlier, PearlBank charged Wincorp with fraud and
misrepresentation before the Securities and Exchange
Commission for making it appear the securities firm was one
of 20 borrowers under a scheme to match lenders with
borrowers.  In retaliation, Wincorp filed a P70-million
suit against PearlBank. Wincorp said the balance of Tan's
outstanding borrowings was more or less P464 million.

Wincorp, a wholly owned investment house of UniOil
Resources and Holdings Corp, brokered the lending of about
P7 billion of funds from over 1,000 investors and creditors
to 20 companies that were mostly owned or controlled by the
family and business allies of former finance secretary
Espiritu.  Espiritu's family and the erstwhile business
allies--lawyer Alfonso Reyno Jr., the Cua family, Exequiel
Robles and Tan himself--also own UniOil.  

PearlBank maintains it does not owe Wincorp anything. It
says it hasn't received any demand letter from the
investment house.  The lawyers of PearlBank are preparing a
formal reply to Wincorp's suit.  Meanwhile, Wincorp lawyer
Leonard de Vera said only the SEC could examine the books
of Wincorp and not the central bank.

De Vera said in turning away BSP examiners, the investment
house showed them a copy of the central bank's own
circulars stating that the SEC had sole and exclusive
jurisdiction over investment houses that did not have
quasi-banking functions of which Wincorp was one.
De Vera said the bank examiners had referred the matter to
the Monetary Board, the policy-making body of the BSP.

Wincorp cited documentary evidence showing that Tan availed
of a credit line agreement he and his wife, Juanita Tan,
signed and borrowed a total P324 million from several
lenders through Wincorp from November 29, 1995 to October
1996. When the credit line was amended the Tans borrowed
from lenders through Wincorp an additional P200 million
between December 1998 and January 1999, increasing their
borrowings to over P524 million.

However, promissory notes sent to the Tans for their
signature were never returned, although the money had been
credited to their accounts, Wincorp said. (Philippine Daily
Inquirer  05-May-2000)

URBAN BANK: Land Bank to sue bank officials
-------------------------------------------
Land Bank of the Philippines, a government financial
institution, is planning to sue officials of Urban Bank
Inc. to recover some P1 billion in Landbank funds which
Urban Bank officials allegedly obtained through
misrepresentation.

A ranking official of the Bangko Sentral ng Pilipinas said
Urban Bank borrowed P300 million from Landbank through the
interbank lending scheme during the Holy Week. Urban Bank,
he added, issued a check apparently as payment to the first
loan on April 24 but again borrowed another P300 million
under the same scheme.

The check issued to Landbank, however, bounced as Urban
Bank declared a bank holiday on April 25. Apart from the
P600 million in loans, Landbank's Provident Fund has some
P400 million in deposit in Urban Bank.

"Obviously, the P300 million loan on a Monday when
officials knew the bank is in trouble was done in bad
faith. I am sure they (Landbank) are preparing to file
charges," said the central bank official.  The BSP official
added that Landbank president Florido Casuela "was so mad,
realizing that the bank was fooled by Urban."

Landbank joined the list of groups planning to file charges
against the officials of the beleaguered bank. The Social
Security System and San Miguel Corp. Retirement Plan
earlier said they would sue Urban Bank to recover their
exposure of P171 million and P179 million, respectively.
The entire SMC group has total exposure of P1.3 billion in
Urban Bank.

A BSP source said Manila Electric Co. and the Philippine
Stock Exchange also have exposure in Urban Bank amounting
to P500 million and P150 million, respectively.  
Ironically, two days before it went on a bank holiday,
Urban Bank had granted a P450-million loan to Puerto Azul
Land Inc. of the Panlilio family.

The loan was released April 24, the day when Urban Bank
officials announced that withdrawals had reached P800
million. Withdrawals peaked at P1 billion the following day
prompting the bank to close.  The "skeletons" in Urban's
closet are now being investigated by the BSP and the
Philippine Deposit Insurance Corp., said the BSP official.

On the day it went into a bank holiday, Urban Bank was
ordered close by the Monetary Board and was placed under
PDIC receivership.  BSP Governor Rafael Buenaventura
earlier said the central bank would also look into the
possible leakage of "insider information" that enabled some
people to make huge withdrawals and loan releases before
the bank went on a holiday.

Urban Bank officials said withdrawals reached P4 billion
before they decided to declare a bank holiday. Urban Bank
chair and founder Arsenio Bartolome III, bank president
Teodoro Borlongan, senior vice president Renato Claravall,
and corporate secretary Corazon Bejasa were put on a hold
order list which came after the government formed a task
force to investigate bank frauds.

The BSP said the liquidity problem of Urban Bank was caused
by the financial problem of its affiliate, Urbancorp
Investment Corp., and its huge exposure to real estate.
Buenaventura had said that SSS, which owns 15 percent of
Urban and San Miguel Corp. Retirement Plan with 8 percent,
could sue Urban Bank Corp. officials for misrepresentation.
The BSP chief said Urban Bank could have misled its
shareholders as to the bank's real financial position.

State pension fund SSS and SMC Retirement group had
complained that they did not know the real financial
position of Urban Bank until the bank had to close last
April 26 following heavy withdrawals. (Philippine Daily
Inquirer  05-May-2000)

URBAN BANK INVEST.CORP.: BSP, SEC set probe  
-------------------------------------------
The Bangko Sentral ng Pilipinas (BSP) and the Securities
and Exchange Commission (SEC) will investigate the
transactions of Urban Bank's failed investment house,
Urbancorp Investment Corp., BSP Gov. Rafael B. Buenaventura
said yesterday.

He said SEC Chairman Lilia Bautista has agreed to allow the
BSP to join the investigation as the central bank, under
current laws, has no direct authority to supervise or
examine the transactions of investment houses.

The BSP is taking an active participation in the
investigation of Urbancorp Investment because the firm's
financial transactions are suspected of having caused the
downfall of Urban Bank.  Initial investigations and
findings of the BSP show that Urbancorp initially suffered
liquidity problems as most of its investments were in non-
earning real estate assets.

When investors of Urbancorp started seeking payments for
their investments, the investment house reportedly sought
the assistance of Urban Bank. The bank was forced to fund
some of the withdrawals that should have been the
responsibility of the investment house.

The BSP noted with suspicion that Urban Bank's common trust
funds (CTFs) were going down even though the bank was
claiming that it was suffering heavy withdrawals. There are
also findings that at least one loan was actually diverted
to Urbancorp.

Under the law, investment houses are regulated and
supervised by the SEC as a corporation and not as a
financial institution.  Earlier, the BSP said it was
planning to take over the supervision of investment houses
without quasi-banking licenses from the corporate watchdog
as part of reforms aimed at curbing financial malpractices.

Investment houses, while they do not accept deposits
directly, accept investments which they then lend or invest
in real estate, securities or extend as loans. Most
investment houses are engaged in financial deals but are
not supervised by the BSP. (Philippine Star  05-May-2000)


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

BUMRUNGRAD HOSPITAL: SET suspends trading
NAKORNTHAI STRIP MILL: SET suspends trading
ROBINSON DEARTMENT STORE: SET suspends trading
SRIVARA REAL ESTATE GROUP: SET suspends trading
-----------------------------------------------
The Stock Exchange of Thailand (SET) announced 6 listed
companies may face possible of delisting and allowed
trading in the securities of 4 listed companies, which
decide to prepare a rehabilation plan from 5 April 2000 - 4
May 2000 to give shareholders an opportunity to trade the
companies' securities. Details have been available in
PUBLIC SIMS on 4 April 2000.

The 4 listed companies are as follows;
(1) Srivara Real Estate Group Public Company Limited (S-
VARA)
(2) Bummrungrad Hospital Public Company Limited (BH)
(3) Robinson Departmentstore Public Company Limited
(ROBINS)
(4) Nakornthai Strip Mill Public Company Limited.(NSM)

Now, the trading period of above 4 listed companies has
been terminated, according to Clause 5(5) of the SET' s
Rules, Conditions and Procedures of the Temporary
Prohibition against Trading of Listed Securities dated on 9
February 1995. Therefore the SET posts an SP sign to
prohibit further trading in those 4 listed securities from
8 May 2000 until the caused of delisting will be
eliminated.

Those 4 Listed companies are now required to proceed as
follows:

1) Appoint an independent financial advisor to jointly
prepare a rehabilitation plan to solve the causes of
delisting.
2) Prepare a rehabilitation plan to solve the causes of
delisting according to Clause 30/4 of the Notification of
the SET regarding the Rules Governing the Delisting of
Securities. The companies must also appoint a financial
advisor to jointly prepare a rehabilitation plan and
propose to their shareholders within 4 months of the date
of notice-received or by 5 July 2000.
3) 4 Listed companies and their advisors must report on the
progress of the companies' operations, comparing the
results of their operations to the rehabilitation plan
every 3 months to the SET, until the causes of delisting
have been eliminated.

The SET would like to ask the companies shareholders and
general investors to follow up the proposed rehabilitation
plan prepared by those companies and their financial
advisors which will be presented to their shareholders
meetings. (Stock Exchange of Thailand  04-May-2000)

FINANCE ONE: Fraud hearings delayed as probe continues
------------------------------------------------------
The Criminal Court yesterday postponed for the third time
hearings into a 2.12-billion-baht fraud case at defunct
Finance One.

Prosecutors requested a delay in the hearings pending the
results of an ongoing investigation by police. The court
agreed to a delay until Aug 29.  Two former executives of
Finance One-Termchai Pinyawat and Samran Kanokwatanawan-
were originally scheduled to give testimony.

Prosecutors charge that two Finance One subsidiaries sold
promissory notes in 1996 to three banks, which then resold
the notes to Finance One the same day.  Police say it is
likely that executives at the banks involved-Nakornthon
Bank, Siam City Bank and Credit Agricole Indosuez-would
also be charged.

Testimony was heard from officials of the Bank of Thailand
responsible for examining transactions and accounts at
Finance One, which was seized and ordered closed by
regulators in 1997.  Central bank officials said their
investigation into Finance One's asset portfolio showed
that the two subsidiaries, Ekapak Co and Joint Business
Management, were among clients with problem loans to the
finance firm.

Prosecutors asked for a delay to allow time for further
investigation of witnesses and evidence in the case. Pin
Chakkapak, former head of Finance One, is fighting
extradition charges related to the fraud case in the
British courts. (Bangkok Post  05-May-2000)

HIPRO ELECTRONICS: Reports on delisting, company status
-------------------------------------------------------
At the meeting of the Board of Directors of the Company
No.3/2000, held on May 3, 2000, at 2.00 p.m., the board
adopted a resolution to delist the shares of the Company.

The company's shares involved are 49,710,850 ordinary
shares, each with a par value of 10 Baht, totaling Baht
497,108,500. The cmopany will present recommendations
concerning the delisting of shares on May 29 at 2 p.mm at
the Bangkok Club, 28th Floor Sathorn City Tower, South
Sathorn Road, Bangkok.  The date of the shareholders
meeting for delisting of shares will be on June 8th, 2000
at 2.00 p.m., at Bangkok Club, 28th Floor Sathorn City
Tower, South Sathorn Road, Bangkok.

The scheduled date of close of share register to suspend
share transfers to determine the shareholders who are
entitled to attend the shareholders' meeting: May 18, 2000
at 12.00 a.m.until the completion of the said shareholders
meeting.

Among the reasons and facts concerning delisting of shares
are that due to changing conditions in the PC power supply
industry, the Company is considering a strategic
restructuring of the Company's operations in order to
enhance profitability and growth. Such expansion may
involve further development of the Company's PRC operations
as most of their customers, such as computer case
manufacturers, are located in the PRC.

Thus, as the Company envisions that future investment will
be in the PRC, the Company believes there may be a mismatch
of the financing source (Thailand capital market) and the
location of the use of proceeds (the PRC). A delisting will
allow the Company to proceed with the strategic
restructuring initiatives.

For the last few years there has been limited trade in the
Company's shares, and at present there is no tangible
benefit for the Company to remain listed. Furthermore the
Company's future business expansion will not require
funding through the Stock Exchange.  A de-listed Company
will not be required to disclose business information which
maybe of a confidential nature and may place the Company
and its suppliers in a disadvantageous position. A de-
listing will further increase efficiency of business
operation.

The voluntary de-listing will give the opportunity to the
shareholders to decide whether to sell their shares at the
tender offer price or keep the shares.  The general offer
to purchase shares and other securities convertible into
shares of the company from the shareholders and holders of
securities.

The offeror or group of offerors and relationship with the
company:  Chicony Overseas INC. which is a major
shareholder of the company total number of shares directly
held by Chicony Overseas INC. and indirectly held by
Jardine Fleming are 14,315,734 and 1,738,349 shares,
representing 28.80% and 3.50% of the paid-up capital
respectively. In addition, Mr.Lee I-Ren and Mr. Hsu Kun Tai
are the directors of Hipro Electronics Public
Company Limited and Chicony Overseas Inc.

Offer price of securities (classified into each type of
securities) Ordinary Shares 38.8 Baht/share Share Warrants
28.0 Baht/Unit. Name of financial advisor of the offeror
KGI Securities One PCL.  Name of independent financial
advisor:  IFCT Advisory Company Limited.

The company's ten major shareholders on March 31, 2000:
1) Thailand Securities Depository Company Limited
for Depositors ( Foreign ) Others Securitie 16,444,798
33.08% Depository
2) Chicony Overseas Inc.* Taiwanese Business 14,315,734
28.80%
3) Thailand Securities Depository Company Limited
for Depositors ( Thai ) Others Securities 3,866,005 7.78%
Depository
4) Super Wealth Limited American Business 2,835,008 5.70%
5) Mr. William Chao Hangman British Business 1,947,719
3.92%
6) Cheong Hing Limited American Business 1,620,000 3.26%
7) Eastern Star Limited American Business 1,620,000 3.26%
8) Mr. Lee Chu-Yu Taiwanese Professional 764,147 1.54%
9) Mr.Chuang Ming Hui Chinese Professional 514,700 1.04%
10) Bangkok Bank PLC. Thai Commercial Bank 495,840 1.00% )
Others 5,286,899 10.62%   Total: 49,710,850 100%

[* Total number of shares directly held by Chicony Overseas
INC. and indirectly held by Jardine Fleming is 14,315,734
and 1,738,349 shares, representing 28.80% and 3.50% of the
paid-up capital respectively.]

The total number of shareholders are 137, holding
49,710,850 shares. The number of small shareholders who
hold on more than 0.5 % of the paid-up capital but not less
than one board lot: 117, holding 3,112,103 shares,
representing 6.26 % of the paid-up capital.

The Board of Directors of the Company on March 31, 2000:
Name/Position/Shareholding Percentage
1. Mr. Suchin Wanglee The Chairman 0.05
2. Mr. Lee I-Ren Vice Chairman 0.87
3. Mr. Hsu Kun Tai Director 0.05
4. Mr. Chuang Ming Hui Managing Director 1.04
5. Mr. Lee Chu Yu Director 1.54
6. Mr. Alan Chi Yim Kam Director -
7. Mr. Chuang Hong Jen Director -
8. Mr. Lin Mao Kuei Director 0.03
9. Mr. William Chao Hangman Director 3.92
10. Mr. Chatchaval Jiravanont Independent Director -
11. Mr. Panja Senadisai Independent Director 0.03
Total 7.53

Directors Mr. Chuang Ming Hui and Mr. Lee I, Ren hereby
confirm that the information contained in this report is
accurate and complete in all respects.  (Stock Exchange Of
Thailand  04-May-2000)


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