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                             A S I A   P A C I F I C

             Friday, June 9, 2000, Vol. 3, No. 112

                                       Headlines


* A U S T R A L I A *

MOBIL OIL: Court rules class actions can proceed against it
PMP COMMUNICATIONS: Closes down Canberra Press operations
TELSTRA GROUP: Raising capital as part of restructuring


* C H I N A  &  H O N G  K O N G *

GUANGDONG ENTERPRISES: Believes rehab to be done in August
NINGXIA SHIZUISHAN NO.1 CARBON PLANT: Norwegian firm buys
PAM & FRANK INT'L HLDGS: Investor bids for HK$55M debt


* J A P A N *

ISETAN CO.: Aims to cut debts by 50B yen over 3 years
KANDENKO CO.: Records 16.4B yen group net loss
LONG-TERM CREDIT BANK: DIC may forgive some of its loans
NIPPON CREDIT BANK:  DIC may forgive some of its loans
NIPPON CREDIT BANK: Softbank acquisition terms clearer
SOGO CO.: Seeks forgiveness of 9.2B yen in loans
TOSTEM CORP.: Records group net loss of 14.6B yen


* K O R E A *

CENTRAL BANKING CO.: Gov't merging it
CHEJU BANK: Gov't merging it
CHO HUNG BANK: Gov't will seek merger this year
DONG AH CONSTRUCTION: Creditors to pick new management team
HANVIT BANK: Gov't will seek merger this year
KOREA EXCHANGE BANK: Gov't will seek merger this year
KOREA MERCHANT BANKING CORP.: Gov't to fund W188B to it


* M A L A Y S I A *

GUOLENE METAL CAN: Kian Joo Can plans revival for it
TIME ENGINEERING: NTL enters into talks


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

ASB GROUP: Rehab efforts face another bank rejection
NATIONAL STEEL CORP.: SEC allows receiver leeway
PHILIPPINE APPLIANCE CO.: May split up company operations
PHILIPPINE NAT.BANK: Auction sale declared a failure
UNIWIDE GROUP: Casino still intends $100M investment
URBAN BANK: Landbank, others go after PhP1.5-B in loans


* S I N G A P O R E *

IPC CORP.: Awaits SingEx approval of rehab plan


* T H A I L A N D *

KRISDAMAHANAKORN PCL: Progress of debt rehab reported
SIAM CITY CEMENT: To pay off all long-term US debt by Sept.
SIAM COMMERCIAL BANK: Sale to Newbridge Capital rejected
THAI GERMAN PRODUCTS PLC: Reports on rehab plan


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

MOBIL OIL: Court rules class actions can proceed against it
-----------------------------------------------------------
Victoria's Court of Appeal has ruled a class action against
oil company Mobil over the contaminated fuel crisis can
proceed in the state's Supreme Court.

The Court of Appeal brought in a 3-2 decision against
Mobil, which had questioned the validity of the Supreme
Court ruling governing a class action.  The decision also
means the class action against the Melbourne Aquarium over
the legionnaire's outbreak will be heard in the Victorian
Supreme Court.

Lawyer Eugene Arocca, who is representing more than 100
people in the legionnaire's case, has welcomed the
decision.  "On a wider scale it's an important day for
justice in Victoria, whereby the Court of Appeal has
affirmed a procedure that is useful, cost efficient and
user-friendly for ordinary Victorians in cases of this
nature," he said.  (ABC News Online  08-Jun-2000)

PMP COMMUNICATIONS: Closes down Canberra Press operations
---------------------------------------------------------
Media and printing group PMP Communications has moved
closer to its targeted $20 million in cost savings after
yesterday announcing the closure of its Canberra Press
operations in Sydney.

The move will make 40 full-time and 20 part-time staff
redundant, and is expected to achieve annual savings of
between $3 million and $4 million.

At the release of its half-yearly results in February, the
group announced the launch of Project PEG (process,
efficiencies and growth), through which it hoped to remove
between $15 million and $20 million in costs by next
financial year.  It has already restructured its Show-Ads
business, resulting in the loss of 70 staff, and announced
$10 million in savings from the introduction of a new
group-wide procurement system.

PMP chief financial officer Craig Thompson said the
Canberra Press production facilities would be relocated to
its Pac-Rim Printing plant in the Sydney suburb of
Moorebank.  About half the workforce and all equipment
would be relocated by June 30, he said.

"The closure will help minimise the duplication and
inefficiencies existing within PMP's printing operations,"
he said.  "By reducing our cost base and streamlining our
operations, we are better-positioned to deliver improved
returns to shareholders."

PMP's shares have been suffering since the company reported
a 9.5 per cent fall in interim net profit to $34.2 million.
The shares fell three cents yesterday to $1.80, but were
trading as high as $2.46 in January. Mr Thompson said
Canberra Press' customers would benefit from the advanced
facilities at Pac-Rim. (The Age  08-Jun-2000)

TELSTRA GROUP: Raising capital as part of restructuring
-------------------------------------------------------
Telstra is expected to announce today that its 1 billion
euro ($1.6 billion) eurobond has been fully sold, following
a radical restructuring of the deal to make it acceptable
to European investors who have been shell-shocked by the
rapidly deteriorating credit quality of the global
telecommunications sector.

Few details were available last night but the joint lead
managers - BNP Paribas Group and Deutsche Bank - were
understood to have fully sold their allocations. There were
suggestions that the deal had been oversubscribed and that
some investors would have their allocations reduced.

The outcome is a positive one for the company, which can
claim to have maintained investor support in a market which
is highly suspicious of telco risk. It has come at a cost,
however. Investor reluctance to commit long-term to the
sector forced Telstra to halve the 10-year bond maturity it
had originally sought to five years.

At the same time, however, the pricing - 115 basis points
over the German Government bond, equivalent to 55 basis
points over swap - remained unchanged, in effect doubling
the company's funding cost.  Telstra's finance team - led
by Mr Paul Rizzo, managing director of finance
administration - had already sweetened the deal by
undertaking to add an additional 50 basis points to the
coupon if the company's credit rating was downgraded more
than four notches - a possibility the company regards as
negligible.

The restructuring of the eurobond is one of a number of
changes the company has made to its $3.5 billion core debt
funding strategy in response to difficult bond markets. One
of the most significant, as disclosed by The Australian
Financial Review yesterday, is its return to the bank debt
markets which, for now at least, look more attractive than
bonds.

Telstra is talking to an as yet unnamed bank about a $2
billion loan which, if agreed, would make available to the
company $1 billion over and above its core funding
requirement. Telstra's treasurer, Mr Cliff Davis, has
suggested the additional amount could be held in reserve
for future needs but declined to be more specific.

The eurobond, together with a $500-million, 10-year
domestic issue earlier this year, accounts for slightly
more than $2 billion of the funding requirement. The
company is considering raising a further $500 million
through a series of yen private placements. It had
considered a public yen-denominated eurobond issue, but the
idea appears to have been abandoned.

With the syndicated loan facility drawn down to $1 billion,
an additional $1 billion would remain available for a
variety of possible uses. These may include, for example,
helping to finance the acquisition of third-generation
mobile telephony spectrum.  The main purpose of the core
debt program, however, is to pay down existing short term
debt and bank lines.

Separately, Telstra is seeking an additional $US2.5 billion
to finance its strategic alliance with Hongkong-based
Pacific Century CyberWorks.  (Australian Financial News
08-Jun-2000)


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

GUANGDONG ENTERPRISES: Believes rehab to be done in August
----------------------------------------------------------
Debt-ridden Guangdong Enterprises (Holdings) (GDE) has made
major progress in a restructuring which should be completed
in August.

"We have already completed the top-tier internal-
restructuring plans," chairman Wu Jiesi said.  "We never
intended to be irresponsible or try to walk away from our
debt obligations."

Mr Wu said the Guangdong provincial government wanted GDE
revamped into an entity which fully complied with
international management standards. Its restructuring was
likely to be a model for reform at other troubled mainland
enterprises, analysts said.  GDE has mapped out its plan to
consolidate its existing 499 subsidiaries into 34 units, as
a way to streamline the group's operations and reduce
redundancy.

The company's operating-loss-making subsidiaries and
overseas operations will be closed down within the next
three months.  This, the company said, would significantly
reduce the group's financial burdens.

"We will refocus our business operations into three major
areas: infrastructure, utilities and profitable high-
technology projects," Mr Wu said.

GDE will also speed up efforts to recover the HK$15 billion
to HK$16 billion account receivables.  "Our focus is on
consolidating the group and on establishing it as a company
with stringent internal and management controls," Mr Wu
said.

Changes would also be implemented at the company's Hong
Kong-listed arms - Guangdong Investment (GDI) and Guangnan
(Holdings) - in a joint venture between the Guangdong
provincial government and GDE's creditors, he said.  Since
March, GDE had sacked 653 employees - a move with an annual
savings potential of HK$130 million.
"We will continue to trim remaining excess manpower in the
coming three months," Mr Wu said, indicating that
efficiency had already improved without any adverse impact
on the company's operations.

Shares of GDI and Guangnan strengthened yesterday on news
of the restructuring having reached an advanced stage.
Investors hoped it might mean an agreement between the
Guangdong government and GDE's creditors was nearer.  In
the past two days shares in Guangnan shot up 34 per cent to
last trade at 35 HK cents. At the same time GDI shares
surged 24 HK cents to close at HK$1.11 yesterday, after
hitting an intra-day high of HK$1.16.

Mr Wu refused to comment on the progress of the GDE's
US$5.59 billion debt-restructuring, except to say the
company was working with Goldman Sachs, the Guangdong
government's adviser on the revamp.  However, he said, the
company had introduced measures to counter corruption and
misappropriation. They include:
? A ban on company officials granting loans, letters of
credit or financing guarantees without board approval.
? Financial controllers at major subsidiaries of the
group can only be Hong Kong people with full CPA
qualifications to ensure their professional standards.
They should be directly responsible to the board.
? Major positions would be by open recruitment on a
merit basis.
? Appraisal mechanisms have been established to assess
staff performance.
? Senior officials can have only a single directorship
within the group.

"If we had done these things before, we would not be in
this awkward situation today," Mr Wu said.  Last February,
GDE said it was insolvent because there had been "improper
and irregular activities".

Eight people suspected of helping to siphon off HK$200
million from Guangnan had been arrested by the Independent
Commission Against Corruption.  Investigators also said
there was a plan to defraud a bank of HK$107.7 million in
bogus loans.  Investigations into irregular activities are
yet to be completed, Mr Wu said.  (South China Morning Post
09-Jun-2000)

NINGXIA SHIZUISHAN NO.1 CARBON PLANT: Norwegian firm buys
---------------------------------------------------------
Yesterday's announcement that Elkem, the Norwegian metals
and materials group, has bought an insolvent state
enterprise in a blighted north-western mining town is
indicative of how Chinese authorities have now begun
actively to pursue white knights from overseas.

For Elkem, the deal to buy the carbon products manufacturer
provides a first production facility in Asia.  For the
Ningxia Hui Autonomous Region, an impoverished area in the
north-west of China, the deal represents the first large
foreign investment, and one which local authorities hope
will prove a trailblazer.

The Elkem purchase illustrates how commercial imperatives
are progressively over-riding a traditional antipathy
towards foreigners acquiring companies in China's sprawling
state sector, still the main economic power base of the
Communist party.  Elkem, it appears, was an early
beneficiary of policies designed to attract foreign
investors to China's western provinces and regions. It is
rare for Chinese authorities, who prefer joint venture
structures, to sell off 100 percent of a state-owned
enterprise to foreigners.

Following yesterday's official inauguration, Elkem owns
79.3 per cent of the Ningxia Shizuishan No 1 Carbon Plant
and the International Finance Corp owns the remainder. The
total investment was USDollars 23m, with USDollars 14m
coming from the IFC.  But despite the willingness of local
authorities, structuring the deal in Ningxia was far from
straightforward. The Norwegian company had to address the
Chinese authorities' concerns over redundancies and sought
its own reassurances over the enterprise's huge debts.

Chris Rynning, regional director of carbon, Asia, for
Elkem, said the redundancy issue was settled by Elkem's
financing of a social security fund which guarantees all
workers laid off from the carbon plant a minimum monthly
entitlement of Rmb400 (Dollars 48) for three years.
This allowance was welcomed locally because the carbon
plant's workers have not been paid for years and because
the minimum wage in the area is around Rmb200 a month.

Elkem has absolute power to determine staff lay-offs, even
at management level.  Sino-foreign joint ventures of the
1980s and 1990s have been notorious for acrimonious
personnel disputes at management level. Mr Rynning said
that around 200 to 230 staff from the original 550 are
expected to be kept.

Others will be brought in and many will undergo training;
capacity is to be expanded.  Elkem has gained further
reassurance from a disbursement programme staggered
over three years.  This will provide local authorities with
a continued incentive to provide power and other utilities
at agreed prices at least until the total investment
has been paid down.

The most difficult issue to resolve was the enterprise's
debt, which the Norwegian company was loathe to absorb.
The Chinese plant's creditor banks were at first reluctant
to sell assets at a discount to their face value, even
though it was quite obvious that none of the loans would
ever be repaid.  Eventually, a compromise was reached
partially because the city and regional government agreed
to assume responsibility for the bad debts, meaning that
the state banks were spared from a big write-off.

"Our priority is creating enterprises that can sell what
they produce and therefore can create some tax revenue,"
said Wei Xiliang, deputy secretary general of the Ningxia
Hui Autonomous Region.  "We have some enterprises that are
losing money and contribute nothing in tax revenue. We
would prefer to let this type of enterprise be closed or go
bankrupt."  (Financial Times  08-Jun-2000)

PAM & FRANK INT'L HLDGS: Investor bids for HK$55M debt
------------------------------------------------------
Pam & Frank International Holdings Ltd said a potential
investor has offered to acquire 55 mln hkd worth of debt
from its creditor banks.

It said the banks have given in-principle consent and a
formal agreement will be signed tomorrow.  The company also
said a court hearing on the winding up petition filed
against it by Li Mei Trading Co has been adjourned until
June 29.  Pam & Frank resumed trading this morning. At
10:37, the stock was unchanged at 0.20 hkd on volume of
869,000 shares. (AFX News  07-Jun-2000)


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

ISETAN CO.: Aims to cut debts by 50B yen over 3 years
-----------------------------------------------------
Department store operator Isetan Co. has announced plans to
cut its consolidated interest-bearing debt by some 50
billion yen by March 2003.

The company presently relies heavily on debt financing, its
liabilities amounting to about 44 percent of total assets.
Isetan plans to reduce its interest-bearing debt, currently
totaling about 170 billion yen, by 33 billion yen over the
next three fiscal years. Subsidiaries also will paydown
their debts using earnings, and some asset sales.
Estimated paydowns amount to about 3 billion yen at a
subsidiary in Niigata Prefecture, about 7 billion yen at a
credit card unit and a total of 7 billion yen at other
units.

LONG-TERM CREDIT BANK: DIC may forgive some of its loans
NIPPON CREDIT BANK:  DIC may forgive some of its loans
--------------------------------------------------------
The Deposit Insurance Corp. (DIC) is mulling the
forgiveness of  a number of loans that it bought from the
former Long-Term Credit Bank of Japan (now called Shinsei
Bank) and possibly Nippon Credit Bank.

At the time LTCB was taken over by new owners, the purchase
contract provided for DIC repurchasing at book value loans
that had deteriorated by 20% or more. Additionally, DIC is
considering such forgiveness of many of the loans so as not
to cause the borrowers to seek legal liquidation of the
obligations.

KANDENKO CO.: Records 16.4B yen group net loss
----------------------------------------------
Posting its first consolidated earnings statement this
week,
Kandenko Co. reported a group net loss of 16.4 billion yen
for its fiscal year ended March 31.

Kandenko posted an extraordinary loss of 40.3 billion yen
from the write-off of unfunded liabilities for retirement
benefits. Additionally, a reduction in capital spending by
subsidiary Tokyo Electric Power Co. dragged down parent
earnings.  Three consolidated subsidiaries were included on
Kadenko's group earnings statement, while the results of 13
other firms were included under the equity method.

Sales this fiscal year likewise are expected to decline by
an estimate 3%, dropping to 496 billion yen. No pension
shortfalls are contemplated this year, however.

NIPPON CREDIT BANK: Softbank acquisition terms clearer
------------------------------------------------------
The Financial Reconstruction Commission and a group led by
Softbank Corp have agreed to base the amount of money Tokyo
will kick in to bolster the failed Nippon Credit Bank's
loan-loss reserves on an assessment of the bank's assets by
neutral auditors.

The final amount of loan-loss reserves will be determined
by August. Amid worries that the longer the talks dragged
on, the more public funds Tokyo would have to use, the FRC
made some concessions to the Softbank group. The FRC will
extend a three-year loss-sharing period by two months. It
will also raise the amount of unrealised gains on portfolio
shares that will be contributed to NCB from 80 billion to
85 billion yen.  (Asia Pulse  08-Jun-2000)

SOGO CO.: Seeks forgiveness of 9.2B yen in loans
------------------------------------------------
In a revised restructuring plan filed Wednesday, the Sogo
Co. is asking Industrial Bank of Japan, its main lender, to
forgive 9.2 billion yen more in loans than it would have
under an earlier proposal.

Overall, 73 banks were asked to waive loans totaling 639
billion yen.  Under the new plan, the department store
group seeks to reduce the waiver burden on banks other than
IBJ by an equivalent 9.2 billion yen amount. Debt-for-
equity swaps would lessen the actual loan total to be
forgiven by 7.1 billion yen.

Under the original plan, IBJ was asked to forgive loan
claims against Sogo of just over 180 billion yen,
representing about 94 percent of its unsecured loans to the
group. IBJ agreed to that proposal, and apparently has
decided to accept the newly proposed plan as well. IBJ loan
waivers would total 189.3 billion yen, or 99 percent of its
oustanding unsecured Sogo loans, under the revised plan.

Sogo management had intended to conclude loan negotiations
by the end of May, but a majority of its creditor banks did
not approve the first plan, citing unclear restructuring
strategy and excessive loan waiver amounts. Debt-for-equity
swaps are offered to 71 of the banks, though not to IBJ or
Shinsei Bank (formerly Long-Term Credit Bank of Japan).
Each bank covered by the swap plan would receive 2 million
shares of Sogo stock.

TOSTEM CORP.: Records group net loss of 14.6B yen
-------------------------------------------------
Aluminum sash-maker Tostem Corp. recorded a consolidated
net loss of 14.61 billion Yen for the fiscal year ended
March 31.

By comparison, the company posted a profit of almost 4.7
billion yen the previous year. Tostem cited special losses
totaling 37.4 billion yen from the write-off of a shortfall
in retirement and pension pay assets as a primary cause for
the loss.  Tostem reported a climb in its group sales of 19
percent to 660 billion yen.

Notwithstanding indications of a slowdown of late, the
company said housing starts for the recent term remained
strong, in large part to a government tax incentive for
homebuyers. Additionally, inclusion of sales data of home
center operator Tostem Viva Corp. in its group results
contributed to its sales growth. Operating profits rose 35
percent to 21.4 billion yen, while pretax profits also
gained 43 percent to 21 billion yen.



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

CENTRAL BANKING CO.: Gov't merging it
CHEJU BANK: Gov't merging it
-------------------------------------
Central Banking Co. yesterday announced it would merge with
Cheju Bank in the first such deal in South Korea involving
a merchant bank and a non-affiliated commercial bank.
The announcement came as the government stepped up a
campaign to consolidate the country's weak banking industry
through mergers and injections of public funds.

Central Banking and the provincial Cheju Bank signed a
memorandum of understanding yesterday, under which the two
banks will merge by the end of this month, the two
companies said in a statement.

"The merger will combine Central Banking's corporate
banking business and Cheju Bank's retail banking," Central
Banking said.  "It will create a dramatic synergy effect
and provide a momentum for the merged unit to develop into
an efficient investment bank with a broad sales network."

The merged entity will have 4.23 trillion won (US$3.8
billion) in assets and a comfortable capital adequacy ratio
of 10.75 percent.  The capital adequacy ratio will be
raised to 15 percent by the end of this year through the
injection of foreign capital and improving the merged
bank's financial structure, Central Banking said.
The new bank hopes to produce a combined net profit of two
trillion won over the next five years.

With a net profit of 82.2 billion won in 1999, the Central
Bank is regarded as one of the best merchant banks in South
Korea.  The announcement of the merger coincided with a
government decision to bring forward the planned injection
of 4.9 trillion won into two ailing investment trust
companies.

Korea Investment Trust and Daehan Investment Trust will
receive the money from the Korea Deposit Insurance Corp.
tomorrow, Yonhap News Agency quoted an unidentified senior
official as saying.  The measure is expected to help
stabilize financial markets as the country's weak
investment trusts have been dumping bonds and shares to
secure cash to avoid a liquidity crunch.  (Business Day
09-Jun-2000)

CHO HUNG BANK: Gov't will seek merger this year
HANVIT BANK: Gov't will seek merger this year
KOREA EXCHANGE BANK: Gov't will seek merger this year
-----------------------------------------------------
The government will complete mergers among state-run banks,
including the nation's largest commercial lender, Hanvit
Bank, this year to speed reform of the financial industry.

Government officials declined to confirm a report in Chosun
Ilbo newspaper that it would merge Hanvit with Cho Hung
Bank and Korea Exchange Bank.  Officials would only say the
three, along with provincial banks, would be merged in some
form.

"The government will take initiatives to proceed with the
mergers of ailing state-run banks this year," a finance
ministry spokesman said.  For stronger banks, "the
government plans to provide incentives to sweeten their
voluntary mergers."

After spending US$58 billion over 2.5 years fixing the
banking industry, which all but collapsed in 1997 following
the devaluation of the won, the government is still trying
to strengthen the country's lenders.  Finance and economy
minister Lee Hun-jai yesterday chaired a meeting with
central bank governor Chun Chul-hwan, Financial Supervisory
Commission head Lee Yong-keun and other policy-makers to
discuss accelerating financial restructuring.

"I'm impressed that the government is moving so fast to
restructure the banking industry," said Kang Shin-woo, a
fund manager at Templeton Investment Trust Management. "The
mergers will make it easier [for the government] to deal
with bad-debt problems at banks but will also have negative
implications, such as rising unemployment, for the
economy."

Other investors were cheered by the move. The bank stocks
sub-index surged 14 per cent.  The government would begin a
three-way merger between Cho Hung, Hanvit and Korea
Exchange Bank next month to combine them under a financial
holding company, Chosun Ilbo reported, citing an
unidentified government official.

The government will provide merged banks with tax favours
and help them bolster their cash flow by purchasing
subordinated bonds and bad debt, according to Yonhap News
Agency.  The reports sent all three bank stocks surging
yesterday.

Korea Exchange Bank, down 34 per cent this year, jumped by
its 15 per cent daily limit to 2,865 won. (HK$19.98).
Hanvit Bank rose 15 per cent to 2,655 won while Cho Hung
Bank also rose 15 per cent to 3,770.  Bank stocks slumped
earlier this year amid concern ongoing bad debt problems -
mostly from Daewoo Group - would topple weaker lenders.

Even stronger banks such as Kookmin Bank, H&CB, Shinhan
Bank, Hana Bank and Koram Bank, may have to join the
restructuring plan. (South China Morning Post  08-Jun-2000)

DONG AH CONSTRUCTION: Creditors to pick new management team
-----------------------------------------------------------
The creditors of Dong-Ah Construction announced Wednesday
that they will hold a meeting Thursday to decide on the
replacements for all the firm's six top executives,
including its chair Koh Byong-woo and president Lee Chang-
bok, who are being held responsible for major problems at
the firm.

A total of 46 creditor financial institutions hold a 45.3
percent stage in Dong-Ah. he creditors group said major
creditor Seoul Bank would nominate a new management team at
the meeting. A special shareholders meeting is slated to
take place June 21 to officially appoint a new board of
directors. According to Seoul Bank, there has been no
discussion of taking Dong-Ah off of its workout program.

"Creditors decided to force the top managers to resign en
masse, holding them accountable for serious moral hazard
problems occurring at the company," said an executive of
Seoul Bank, Dong Ah's main creditor bank.

Dong Ah's debt rescheduling program has shown little
progress, while the top executives are locked in an
internal fighting over managerial control and allegedly
involved in a parliamentary campaign funding scandal, he
said.

The creditors' steering committee will hold a meeting today
to endorse the decision, he said. Creditors will pick one
of the company's outside directors as acting president of
the construction company till a new president will be
selected at a special shareholders meeting June 21.

Koh is suspected of donating campaign funds to 100
candidates for the April 13 parliamentary election as part
of political lobbying, but he has flatly denied it. The
flagship of the now-defunct Dong-Ah Group, the construction
company is now under a debt rehabilitation program.
(Korea Herald  08-Jun-2000, Digital Chosun  07-Jun-2000)

KOREA MERCHANT BANKING CORP.: Gov't to fund W188B to it
-------------------------------------------------------
The Ministry of Finance and Economy (MOFE) announced
Thursday that it has decided to provide W188 billion in
rescue funding to the ailing Korea Merchant Banking Corp.
(KMBC).

The merchant banking firm has been suffering from a
liquidity crisis due to exposure to the bankrupt Nara
Banking Corp., which defaulted on the repayment of W188
billion in commercial papers (CPs) purchased by KMBC after
declaring bankruptcy. Backed by KMBC's purchase of its CPs,
Nara had extended a loan in the same amount to the Daewoo
group, which went bankrupt last summer. KMBC's liquidity
status has been in trouble since then.  (Digital Chosun
08-Jun-2000)


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

GUOLENE METAL CAN: Kian Joo Can plans revival for it
----------------------------------------------------
Kian Joo Can Factory Bhd plans to revive Guolene Metal Can
Sdn Bhd which it is acquiring and turn it into a profitable
company by next year.

Kian Joo chairman Tunku Naquiyuddin Ja'afar said the
company expected to complete the acquisition of Guolene
Metal by the middle of this month.  Kian Joo is buying the
entire equity in Guolene Metal, a Shah Alam-based
manufacturer and supplier of three-piece tin cans, from
Guolene Packaging Industries Bhd for RM13.75mil cash.
Naquiyuddin told reporters after the Kian Joo AGM in Kuala
Lumpur yesterday that the acquisition of Guolene Metal
would raise Kian Joo's current 50% share of the local tin
can market to 60%.

"We will assume control of Guolene Metal on July 1. We will
then review all its uneconomic problems and benchmark it
with our operations so as to give it a healthy start,"
Naquiyuddin said. "We will not pump in working capital into
Guolene Metal but will assist in terms of management.
Guolene Metal has been making losses for the past six
years. We hope it will start making profit next year."

He said that this year, Kian Joo would also beef up the
operations of its 60% owned subsidiary KJM Aluminium Can
Sdn Bhd. He said KJM, which incurred a loss of RM14.2mil in
its first year of operations, was facing with an
insufficient demand for its product, the 2-piece aluminium
retortable slim can.  Naquiyuddin said that although the
KJM products were relatively new in Malaysia, the demand
would eventually grow.

"This year, we expect KJM to incur a slightly smaller
losses but we hope it will break even or start making
profit next year,'' he said.

According to Kian Joo executive director Datuk Anthony See,
KJM, which now exports a portion of its output to
Singapore, would also look for new export markets,
including Thailand and Taiwan.

"We also hope our partner, Mitsubishi will help to open the
Japanese market for KJM's products," he said.  (KJM is a
joint venture between Kian Joo and Mitsubishi of Japan.)

On its outlook for the current financial year ending Dec
31, 2000, See said he expected Kian Joo to retain its last
year's profit and turnover.  Kian Joo achieved a RM52.61mil
pre-tax profit from a RM425.5mil turnover in the financial
year ended Dec 31, 1999.  See said the prices of all its
raw materials - aluminium and tin plates, carton papers and
PET resin--had gone up and this has had some impact on the
company's profit margin.

Aluminium and tin cans constitutes about 80% of the
company's both pre-tax profit and turnover, carton boxes
12% and PET bottles 8%.  "We are now struggling to maintain
our pricing to the customers. If there is going to be any
improvement in our profit this year, it will not be a
significant one," See said.

On concerns that Kian Joo had lost its Guinness Anchor
contracts, See said: "Although Guinness will not buy from
us this year, we are not too worry about this as we have
already got more orders, including from F&N and Yeo Hiap
Seng of Singapore."  (Star  09-Jun-2000)

TIME ENGINEERING: NTL enters into talks
---------------------------------------
NTL Inc. has begun talks with Time Engineering Bhd. on
helping the Malaysian company develop its telecommunication
business.

In an interview, financial executives familiar with the
continuing talks also said the U.K.-based cable operator is
considering taking as much as 10% equity interest in Time
dotCom, the wholly owned telecommunications subsidiary of
Time Engineering. Executives from Time Engineering and NTL
couldn't be reached for immediate comment, but the
financial executives said an announcement on the proposed
alliance is expected over the next two weeks.

In May, Time Engineering - which is currently under court
protection from its creditors - abandoned its proposed
alliance with Singapore Telecom Ltd. (The Asian Wall Street
Journal  07-Jun-2000)


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

ASB GROUP: Rehab efforts face another bank rejection
----------------------------------------------------
Another creditor of the beleaguered ASB Group of Companies
recently joined the group of banks that earlier expressed
opposition to the Roxas-owned firm's bid for suspension of
debt payment and financial recovery.

United Coconut Planters Bank (UCPB) filed before the
Securities and Exchange Commission (SEC) last Tuesday, its
formal opposition to the rehabilitation efforts of the ASB
group, following similar moves earlier made by six other
creditor banks.

In its petition, UCPB sought the liquidation of the debt-
saddled property developer, the dismissal of its bid for
rehabilitation, and the lifting of an earlier SEC order
that suspended all claims against the firm.

"The rehabilitation plan has no basis as (it) fails to
offer any solution to address the reasons behind the
financial difficulties of (ASB)," UCPB said.

According to the creditor bank, the rehabilitation plan
prepared by ASB is not feasible given the existing economic
condition in the country. Moreover, the bank charged the
said plan as being incomplete, alleging that it pertains
only to the creditors of ASB Holdings, Inc. and fails to
provide for the debts owed by the Group's affiliates and
allied companies.

ASB attributed its financial woes to the sudden non-renewal
and massive withdrawal by creditors of their loans to ASB
Holdings; the glut in the real estate market; and the
severe drop in sale of real property, among others.

From the reasons enumerated, UCPB said "it is clear that
the financial uncertainties suffered by (ASB) is due to
reasons beyond their control. Therefore, the proposed
rehabilitation plan (which calls for changes in the firm's)
management, organization, policies, strategies, operations
and finances, is pointless as such changes offer no
solution...to the problem affecting the property industry
and the national economy, which are the main causes for
(ASB's) present dilemma."

And contrary to the ASB Group's claims of having sufficient
property, amounting to 19.21 billion Philippine pesos (PhP)
(US$452.88 million at PhP42.417:US$1), to cover liabilities
of over PhP12.7 billion ($299.40 million), UCPB alleged
that the Group is in fact insolvent.

"The financial statements submitted by (ASB) are unaudited.
These financial statements are self serving and do not
reflect the true financial condition of (ASB) and may, in
fact, contain misrepresentations," UCPB said.

UCPB alleged as highly irregular, the appraisal increment
of PhP5.3 billion ($124.95 million) reported by ASB, as
well as the notes receivable of around PhP5.5 billion
($129.66 million). The bank pointed out that the said
amounts should be carefully scrutinized as it could
significantly affect the solvency of ASB.

"The appraisal increment is clearly a scheme to window-
dress the financial picture of (ASB) to deceive the (SEC)
and to mislead the public into believing that (ASB) can be
rehabilitated," UCPB said.

UCPB, with claims amounting to over PhP623 million ($14.68
million), further expressed doubts over ASB's projected
cash inflow of PhP603 million ($14.22 million) from
operations and PhP4.5 billion ($106.10 million) from
investment activities, given the continued glut in the real
estate market.

Other creditor banks that have formally opposed ASB's
petition for rehabilitation are Metropolitan Bank and Trust
Co. (Metrobank), Rizal Commercial and Banking Corp. (RCBC),
Philippine National Bank (PNB), Prudential Bank, Union Bank
of the Philippines (UBP), and Equitable PCI Bank.
The ASB group filed for suspension of debt payments and
rehabilitation last May 3. (Business World  08-Jun-2000)

NATIONAL STEEL CORP.: SEC allows receiver leeway
------------------------------------------------
The Securities and Exchange Commission has granted the
interim receiver of debt-laden National Steel Corp
permission to negotiate and enter into contracts necessary
to preserve the assets of the steel firm.

In its order, the SEC gave the interim receiver of National
Steel authority to dispose some corporate assets to defray
the necessary expenses of the company.  Both the National
Steel management and the receiver, however, should seek the
approval of the SEC prior to the disposal of any asset.

The order also directed creditors of National Steel to
submit within 15 days their comment on the amended
rehabilitation plan of the company.  Under the plan
submitted by the receiver to the SEC last month, 9 bln
pesos of the steel firm's 16.5 bln pesos in debts will be
restructured while the balance will be converted into
equity.  The plan also calls for a strategic investor which
will infuse an additional capital of 600 mln usd to 1.0 bln
into National Steel.  (AFX News Limited  08-Jun-2000)

PHILIPPINE APPLIANCE CO.: May split up company operations
---------------------------------------------------------
Debt-saddled appliance manufacturer Philippine Appliance
Corp. (Philacor) wants to split up its manufacturing and
marketing operations to improve its chances to recover from
the continuing impact of the Asian financial crisis.

Philacor president and chief executive Dante Santos told
reporters that the split-up is needed to improve
operations. He also admitted that Philacor has shut down
operations in its new plant in Calamba, Laguna since two
months ago.

"We're thinking of splitting up the company into
manufacturing and marketing. That's being discussed," Mr.
Santos said.

The company, however, still needs to raise 500 million
Philippine pesos (PhP) (US$11.78 million at PhP42.417:US$1)
for operations level to recover.  Marsha R. Santos, senior
vice-president for corporate planning and services,
explained the plan, which forms part of the recovery
strategy of Philacor, "will allow us the flexibility to
meet (the challenges of) the changing times."

The company head stressed the two companies would still be
owned by the same set of shareholders. US-based General
Electric (GE) owns 37.8% of the firm. The Santos and
Alvendia families each own about 23% interest.

Ms. Santos said splitting up the firm could open chances
for the manufacturing side of operations to take advantage
of tolling opportunities from some foreign brands that
intend to produce locally.  Philacor has suffered severe
liquidity problems since early 1998, forcing it to cut
labor force by almost half. This resulted from huge debts
it incurred in line with the construction of a new and
expanded plant in Calamba.

The appliance maker issued long-term commercial papers
worth one billion pesos ($23.57 million) in May 1997 to
fund expansion. Mr. Santos said this was settled through a
debt-for-asset swap signed with creditors last May 30.

Philacor's short-term debts amount to PhP700 million
($16.50 million) with Bank of Philippine Islands (BPI) and
Far East Bank & Trust Co. (FEBTC) accounting for the
largest combined exposure totaling PhP200 million ($4.71
million).  Mr. Santos said company officials had been
working out an agreement to further lower Philacor's debt
exposure, particularly short-term debts.

Company officials explained that the decision to expand was
made following the signing of the 1989 Montreal Protocol, a
multilateral accord banning the use of ozone depleting
substances such as chloroflourocarbons found in
refrigerators. Philacor had to build a new plant to comply
with the agreement that took effect in 1999.

Company officials added the expansion was pursued in light
of their projections in 1994-1995 that the domestic market
would grow in a few years and that the capacity of
Philacor's old plant in Sucat, Para¤aque would not be
enough to meet rising demand. The new plant, which cost up
to PhP1.3 billion ($30.65 million) to build, has an annual
capacity of half a million units.

At the start of construction in 1996, Philacor expected to
raise funds through the sale of its old plant in Sucat, but
this did not materialize following the property slump in
1997. Until now, the old plant has yet to be sold.

This, compounded by the slump in sales of consumer durables
that followed the Asian financial crisis and the
devaluation of the Philippine currency, burdened the
company with a debt overhang. Philacor has dollar
requirements to purchase compressors, cover tubing, and
pre-painted steel.

Since the long-term commercial papers were scheduled to be
settled in May this year, Philacor was forced not to order
imported raw materials in February this year.  It was only
able to order inputs in the last week of May and the
shipments are due to arrive in July this year.

Manufacturing operations will then resume in September this
year, Ms. Santos said.  By this time, plant capacity
utilization will be 20,000 units a month or half of the
plant capacity.  Prior to the crisis, Philacor products (GE
and WhiteWestinghouse brands) accounted for 55% of domestic
demand which totaled 650,000 units a year.

Mr. Santos said Philacor could possibly regain this market
position in a year or two as he boasted of a reliable
consumer patronage due to the credibility it developed over
the years.

The firm has yet to raise the PhP500 million ($11.78
million) needed for operations to normalize and this will
be made by selling a number of company assets. Aside from
the Sucat plant that was valued at up to PhP1.7 billion
($40.07 million) in 1996, other assets include a two-
hectare property in Bicutan and the Philacor Credit Corp.
that can be sold at up to PhP400 million ($9.43 million).

In a statement, Philacor said its new plant is a state-of-
the-art manufacturing facility that "stands as the most
modern refrigerator factory in the Philippines."
Shareholder GE also issued a statement, stressing its full
support to the leadership of Mr. Santos. GE Philippine
country manager Felix B. Amparo branded as "completely
false and malicious" the rumors spread by an industry
competitor that Philacor was rocked by shareholder feuds.
(Business World  08-Jun-2000)

PHILIPPINE NAT.BANK: Auction sale declared a failure
----------------------------------------------------
The Philippine government yesterday declared its planned
sale of Philippine National Bank a failure because there
was only one bidder.

"There will be no more bidding tomorrow. It's a failed
bid," Finance Undersecretary Cornelio Gison said.

The government was due to announce today the result of its
planned sale of 80 per cent of the bank including a large
privately held stake.  But analysts expect the government
to try again because the bank's sale is a condition for
assistance from the International Monetary Fund and the
World Bank.

There were two potential bidders for the country's fourth-
largest bank - US food company TLC Beatrice and Rizal
Commercial Banking - but the US firm was disqualified.
The government had earlier expected three bidders.
Filipino-American Loida Nicolas Lewis, TLC chairman and
chief executive officer, said her company would continue
negotiations with the government to buy the bank.

The 80 per cent holding up for sale includes a 30.39 per
cent government-owned stake and 46 per cent owned by Lucio
Tan, a tobacco and airline player and close friend and
supporter of President Joseph Estrada. The rest is held by
PNB Retirement Fund.

The sale is widely seen as a crucial test of how serious Mr
Estrada's embattled government is about economic reform and
stamping out cronyism.   (Hong Kong iMail  09-Jun-2000)

UNIWIDE GROUP: Casino still intends $100M investment
----------------------------------------------------
Despite sporadic clashes in Mindanao and a spate of
bombings in Metro Manila, French retail giant Casino
Guichard Perrachon Et Cie will push through with its $100-
million investment in cash-strapped Uniwide Holdings
Corporation.

Trade and Industry secretary Manuel Roxas II said on
Wednesday the French retailer is optimistic about long-term
prospects in the country, since it remains unaffected by
the ongoing war against secessionists in Mindanao. Roxas
also said the Casino group is also confident of the newly
passed law liberalizing retail trade in the country.

Roxas said he met with officials of the Casino group last
month and had been informed that the planned investment in
Uniwide would push through.  The trade chief said Casino's
investment will free up some P4.1 million worth of
Uniwide's tradeable assets, allowing the ailing firm to
settle its obligations with suppliers.

The Casino group is set to finalize its investment in
Uniwide after the Securities and Exchange Commission
resolves the local retailer's financial position.
Uniwide, which has debts totaling P11.1 billion, filed for
a suspension of debt payments with the SEC on June 26 last
year after failing to meet its obligations to creditors.

Owned by the Gow family, the group incurred debts as a
result of its expansion into property development.  As of
end-1998, Casino Guichard had been operating more than 112
hypermarkets, 473 supermarkets, and 2,230 convenience
stores in France.  It also operates in Poland, the United
States, Argentina, Brazil, Columbia, Venezuela, and
recently in Taiwan and Thailand. (ABS/CBN News Channel  08-
Jun-2000)

URBAN BANK: Landbank, others go after PhP1.5-B in loans
-------------------------------------------------------
State-owned Land Bank of the Philippines and several other
banks will be left holding some 1.5 billion Philippine
pesos (PhP) (US$35.36 million at PhP42.417:US$1) in unpaid
interbank loans lent to now-closed Urban Bank, a top
regulatory official yesterday said.

The official, who declined to be named, said the short-term
loans were given without collateral in the interbank call
loan market (IBCL) and will thus be treated on equal
footing with the bank's other unsecured creditors,
including depositors with more than PhP100,000 ($2,357).

"All its credit facilities were 'clean lines'," the source
said.

In a bid to meet heavy withdrawals from its investment
house subsidiary, Urban Bank reportedly borrowed heavily
from the interbank market in its last few days of
operations.

The bulk of these interbank loans came from Landbank, which
extended Urban Bank some PhP600 million ($14.14 million) a
day before the latter declared a bank holiday last April.
Several unidentified banks also lent Urban Bank a total of
PhP900 million ($21.22 million) through the electronic
multi-transaction interbank payment system (MIPS), also to
satisfy its liquidity needs.

In Landbank's case, its initial exposure of PhP300 million
($7.07 million) reportedly doubled when the Philippine
Clearing House Corp. (PCHC) responsible for monitoring
interbank transactions nullified the first transaction
after the second loan had already been lent to Urban Bank.

Whether the Urban Bank will be rehabilitated or liquidated,
the official said interbank lending will rank behind
secured loans granted to the bank as mandated by local
corporate law.

"The receiver will satisfy all the bank's secured
borrowings first," the official said. "Only after that will
the unsecured loans be paid."

The Philippine Deposit Insurance Corp. (PDIC) is set to
open on June 13 bids from six banks interested in buying
and rehabilitating Urban Bank.

PDIC chief Norberto C. Nazareno said the bidding schedule
remains on track and that PDIC is already finalizing all
the necessary information the buyers need to perform due
diligence.

"Hopefully, Urban Bank will have been sold and the
rehabilitation begun by June 30," he said. (Business World
08-Jun-2000)


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

IPC CORP.: Awaits SingEx approval of rehab plan
-----------------------------------------------
Responding to auditors' concerns about its 1999 results,
IPC Corporation yesterday said it was awaiting the
Singapore Exchange's approval for its debt-restructuring
plan and expressed confidence that it would continue as a
going concern.

On Wednesday, IPC's auditors, Ernst & Young, issued a
disclaimer of opinion on IPC's 1999 results and raised
"substantial doubt that the company can continue as a going
concern."
The news sent IPC's shares sinking 20 per cent to 21.5
cents yesterday, with 39 million shares traded.  IPC said
in a statement yesterday that "similar disclaimers have
also been made" over its 1997 and 1998 results, and gave
reasons why it strongly believed it would survive.

With a debt restructuring plan approved by creditors in
March and approved by the High Court in April, IPC's German
white knight, Infomatec AG, has deposited US$20 million
(S$34.4 million) in escrow with Arthur Andersen, IPC's
scheme administrator. This amount will be injected into IPC
as fresh capital.

IPC has also submitted an application to the SGX for the
listing and quotation of new shares to be issued under the
debt restructuring plan. When approved, an extraordinary
general meeting will be called. "The company is confident
that the shareholders will approve the debt restructuring
plan," the statement said.

IPC also pointed to its "various major efforts" to
reposition its core businesses in the e-commerce, thin
computing and telecoms areas as further evidence that it
would continue as a going concern.  BT understands that the
company expects to be able to obtain shareholder approval
in the next two months, paving the way for the company to
become debt-free.   (Business Times  09-Jun-2000)


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

KRISDAMAHANAKORN PCL: Progress of debt rehab reported
-----------------------------------------------------
Krisdamahanakorn Public Company Limited, through Miss
Nutjarin Utaicharoenpong, Director and Deputy Managing
Director, has reported the progress of its debt
restructuring plan to the Stock Exchange of Thailand. More
than 90% of creditors agreed in principle with the debt
restructuring plan as proposed by KMC.

With reference to KMC's letter dated March 6, 2000
regarding the reported to sign on the debt restructuring
contract amount 2 creditors : Assets Management Corporation
and City Bank, totally Baht 4,276.41 million, 19.57% of
total debt outstanding.

Recently, KMC signed the debt restructuring contract with 2
creditors : SG Asia Credit Public Company Limited and
National Finance Public Company Limited as of May 22, 2000
and May 31, 2000, respectively and totaling Baht 1,360.587
million, 8.105%.

1. National Finance Public Company Limited As of March 31,
2000, total outstanding debt of Baht 1,118.726 million
(6.648% of total debt) is settled by transferring the
securties of debt guarantee value of Baht 231.228 million.
In additions, the rest is converted to long-term (3-year)
loan Baht 567.60 million, long-term (7-year) loan Baht 15
million, 3,762,500 preferred shares at Baht 10 per share,
and Hair-Cut of Baht 267.273 million.

2. SG Asia Credit Public Company Limited As of May 22,
2000, total outstanding debt of Baht 241.861 million
(1.457% of total debt) is settled by the rest is converted
to long-term loan Baht 229.597 million and Hair-Cut of Baht
12.264 million.

The Company has already signed the debt restructuring plan
totally Baht 5,637 million (27.68% of total debt). (Stock
Exchange of Thailand  08-Jun-2000)

SIAM CITY CEMENT: To pay off all long-term US debt by Sept.
-----------------------------------------------------------
Siam City Cement (SCCC), Thailand's number two cement
producer, yesterday announced it will pay off all its long-
term US-dollar debts, totalling $542 million (20.6 billion
baht) by the end of August this year, as the company is
expecting gross profits of around two billion baht this
year, according to Beat Malacarne, Senior Vice President
for Finance and Administration of SCCC.

Malacarne disclosed that there remains about $70 million in
outstanding foreign debts, which will be paid back to the
creditors in August ahead of schedule. He said SCCC
obtained the US-dollar loans last year when the company
entered a debt-restructuring program with its creditors.

Malacarne further disclosed that Siam City will repay the
debts through a combination of asset sales and cash from
operations. The company raised $27 million recently selling
its half-stake in a local power plant.

Meanwhile, Staporn Phettongkam, SCCC Secretary General and
Corporate Communications Director, said the company will
gross $386.8 million in sales of its cement products this
year, registering a slight increase over the amount last
year. He said the company will enjoy increased profits this
year, mainly due to reduced interest payments. Last year,
SCCC paid as much as $38.6 million, while this year it
expects fees of only $19 million.

Staporn said the last repayment of US-dollar debt in
August, plus debenture redemption of $131.5 million,
scheduled in November, will help SCCC save on interest
payments.  He said SCCC's major partner, Holderbank
Financiere Glarus of Switzerland, has helped tremendously
in introducing SCCC products to US and European markets.

SCCC's total sales this year will amount to five million
tonnes in the domestic market, and 4.5 million tonnes in
foreign sales, Staporn said, adding that within the next
three years, the company will invest about $10 million
yearly to improve its manufacturing facilities and
machinery.

"There will not be substantial investment [beyond this
amount] in the near future because the company is still
suffering accumulated losses," Staporn said.

At the same press conference, Paul Hugentobler, SCCC
Managing Director, said the company will stick to its
cement production business, and will sell some other non-
cement-related activities.  Within 6-12 months, Hugentobler
said, SCCC will sell off its stake at Karat Faucet, merge
Royal Porcelain with Siam Fine China, while still
maintaining its 25% stake in Lanna Lignite.  (Business Day
09-Jun-2000)

SIAM COMMERCIAL BANK: Sale to Newbridge Capital rejected
--------------------------------------------------------
The Bank of Thailand (BOT) yesterday rejected Newbridge
Capital's offer to buy Siam Commercial Bank (SCIB), saying
the proposal was unacceptable.

Chaktip Nitibon, BOT Assistant Governor, did not divulge
details, but one of the sale committee said "the deal is
off because the offer is too low and the proposal was
ambiguous and contained many loopholes."

Trumph Jalichandra, representative from the Office of the
Attorney General who witnessed the bidding process, said,
"from a legal standpoint, many items in the proposal were
obscure and the BOT did the right thing to reject it."

The FIDF, a major stake-holder in the bank, must now plan
its next move. The sale committee held a meeting
immediately following the decision, but no conclusion has
been reached. It is expected that the FIDF will announce
its plans regarding SCIB's future within a month.  BOT
Governor Chatu Mongkul Sonakul on Wednesday commented that
Newbridge Capital's motive was to snap up a cheap deal and
scoop profit without any plans to expand business.  He
added that the delay would only financially consume SCIB as
the bank loses 300 million baht each month.

SCIB President Phaithoon said while waiting for the next
buyer, "I think it's a good idea to separate the bank into
'good bank' and 'bad bank' parts for simplicity in
managing," he told Reuters.

Phaithoon's comment came right after the BOT confirmed that
it had rejected the bid.  As of now, SCIB's president said,
there are no prospective buyers for the bank. The sale
process will be revamped by next month, said Chaktip. The
BOT will look for alternatives to either sell or manage the
bank.  Currently, SCIB has 230 billion baht in outstanding
loans of which 60 percent are NPLs. By end of first quarter
it had restructured 24 billion baht.

The sale of state-owned lenders is part of a government
plan to rebuild the shattered financial sector where about
two-fifths of total loans are delinquent. The government
has shut more than two-thirds of Thailand's finance
companies and seized half of the country's commercial banks
in the past three years.

The BOT may opt to either seek new buyers or manage the
state lender itself, analysts said.  The BOT has delayed
selling SCIB for more than a year as bidders, especially
Newbridge, offered unacceptable prices. It originally
planned to sell the bank by the end of June.

Thailand has sold three state banks to foreign financial
institutions in the past year. Buyers included the UK's
Standard Chartered, HSBC Holdings and Singapore's United
Overseas Bank. SCIB was seized by the government in 1998
because it was insolvent. It lost 5.8 billion baht in 1999
compared with 42.5 billion baht in the previous year.
(Business Day  09-Jun-2000)

THAI GERMAN PRODUCTS PLC: Reports on rehab plan
-----------------------------------------------
Thai-German Products Public Company Limited (TGPRO),through
Veerachai Leelaprachakul, Authorized Director, PLV &
Associates Co., Ltd., Plan Administrator, has reported on
the rehabilitation of the company to the Stock Exchange of
Thailand.

On August 4, 1999, TGPRO, a listed company in the SET filed
the petition for business rehabilitation plan to the
Central Bankruptcy Court in line with the Bankruptcy law.
On September 7, 1999, the Central Bankruptcy Court issued
an order for business rehabilitation and also appointed
Siam City M.B. Co., Ltd. and PLV & Associates Co., Ltd.
(PLV) as the co-planners. Then, on March 14, 2000 the co-
planners submitted the rehabilitation plan to the Debtor
Business Reorganization Office.

Subsequently, on May 9, 2000, a meeting of creditors was
held and a special resolution was passed accepting the
plan. The creditors also approved the following: the
appointment of the PLV & Associates as the plan
administrator, and the appointment of IFCT, Siam City Bank
and KrungThai Bank to form as creditors committee to
monitor the performance of plan administrator.

In this regard, TGPRO, through its plan administrator,
would like to inform you that the Central Bankruptcy Court,
on May 18, 2000, approved the rehabilitation plan and put
the power and authority to manage TGPROs business and
property under the supervision of PLV.  The significant
points of the rehabilitation plan will be submitted to the
SET on June 19, 2000 in order to maintain the listed
company status.  (Stock Exchange of Thailand  08-Jun-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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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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