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

                             A S I A   P A C I F I C

             Friday, June 23, 2000, Vol. 3, No. 122

                                   Headlines


* A U S T R A L I A *

NATIONAL TEXTILES: Gov't provides $1.8M bailout
NESTLE CO.: To close coffee processing factory
PYRAMID GROUP: 190,000 investors await money return


* C H I N A  &  H O N G  K O N G *

ROCKEFELLER (FAR EAST): Banker alleged to take kick-backs


* I N D O N E S I A *

ROBBIE SUMAMPOW: $5.5M judgment imposed against him


* J A P A N *

EIE INT'L CORP.: Court declares bankrupt
GENERAL LEASE CO.: Court declares bankrupt
MDI CORP.: To reduce group borrowing over 3 years
SOGO CO.: Gov't considering bailout


* K O R E A *

DAEWOO MOTOR: Bidding war to heat up by Monday
HYUNDAI INVEST.TRUST & SEC.:$804M infusion-6 foreign firms
POHANG IRON STEEL CORP.: To delay ADR pricing - weak demand


* M A L A Y S I A *

BERJAYA SPORTS TOTO: Gaming unit hits 6-mo.low on debt woes
IDRIS HYDRAULIC: New major s'holders set to take over
PUNCAK VISTA SDN: Still in default of credit facilities
UNITED ENGINEERING: To assume PLUS bonds prior to IPO


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

ASB GROUP: PNB opposes rehabilitation plan
NATIONAL STEEL CORP.: Equitable PCI Bank rejects rehab plan
PB COM BANK: Shareholders okay downgrade of status
PHILIPPINE TEL.& TEL.CORP.: Ailing firm's prospects bleak
PILIPINO TELEPHONE CORP.: Inks debt restructuring pact
TRADERS ROYAL BANK: Bad loans hinder Bancommerce merger


* S I N G A P O R E *

KEPPEL MARINE INDUSTRIES: To be reorganized


* T H A I L A N D *

MODERN HOME DEVELOPMENT: Hong Kong firm is new partner
UBOLSAHATHAM KONSONG: Rehabilitation petition accepted


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

NATIONAL TEXTILES: Gov't provides $1.8M bailout
-----------------------------------------------
Prime Minister John Howard says a special payment to
bailout workers from National Textiles was not the first
time a regional assistance fund has been used in an
emergency.

The Opposition claims the $1.8 million payment was unique,
meeting the full cost of unpaid workers entitlements after
National Textiles collapsed.  The National Textiles company
is chaired by the Prime Minister's brother, but Mr Howard
says it was not the first time the Regional Assistance
Program has been used to respond to regional emergencies.

"Funding was provided for re-training of former employees
of Oakdale Colliery following its closure last year and in
response to damage to the local economy caused by Cyclone
Rosita earlier this year," he said. "The truth of the
matter is that the payment was made in circumstances that
are well known."

Meanwhile, labor is considering asking the Auditor-General
to investigate the legality of the $1.8 million payment,
and whether it breached published funding guidelines. A
spokesman said yesterday that Labor was "examining all
accountability vehicles for this to be fully examined" --
which would include the Auditor-General and the
Parliament's Joint Public Accounts Committee.

The Opposition used Question Time to attack what it called
the special treatment involved in the payment to workers at
the company chaired by the Prime Minister's brother, Mr
Stan Howard, when similar payments were not available to
workers at other companies.  The Minister for Workplace
Relations, Mr Reith, released a statement saying the Herald
was wrong in questioning the propriety of the National
Textiles payment.

The Herald yesterday quoted Professor Geoffrey Lindell, of
the University of Melbourne's Law School, questioning
whether the top-up payment met the description of the
budget appropriation under which it was made.  Spending
funds without proper parliamentary appropriation breaches
the Constitution.

Mr Reith said his department had sought legal advice from
the Australian Government Solicitor in February about the
payment of employee entitlements. It had been advised that
"the provision of such assistance could be made" from the
Regional Assistance Program.  Mr Reith also said the Herald
had argued the RAP guidelines were not met. In fact, the
Herald said published funding guidelines were not met,
which is correct.

It reported that Mr Reith had said the decision came from
"the national projects" element of the program.  There are
no published guidelines for the national projects payments,
which Mr Reith said were made on a case-by-case basis. The
first public reference that can be found to the national
projects funding was an answer to an Opposition question in
April, some months after the payment to the National
Textiles workers was made.

Mr Reith said last week that the Government had made three
different sorts of payments to National Textiles workers:
$165,000 from the Employee Entitlements Support Scheme, a
$1.835 million top-up from the RAP and a payment of up to
$2 million from the RAP for retraining.   (Sydney Morning
Herald, ABC News Online  22-Jun-2000)

NESTLE CO.: To close coffee processing factory
----------------------------------------------
The Warrnambool Council is to hold talks with the Victorian
Government to try to help 122 workers who will lose their
jobs when the Nestle coffee processing factory in
Victoria's south-west closes in November.

Staff were told of the plan yesterday, and a letter was
delivered to the council.  A milk processing plant will
continue.  Mayor David Atkinson says Nestle believes the
plant has outlived its usefulness.  He says the move will
add to Warrnambool's high unemployment, which is greater
than the state average.

"I don't think there's much that we can do about the
factory decision," he said.  "All that we can do is to
support the people.  We'll have to examine what it is that
can be done in a joint effort between ourselves and the
State Government, but what it is and what it can be I'm not
sure at this stage."

Nestle has pledged to do all it can to help its employees.
The company has decided its coffee processing plant is no
longer viable, and a significant investment would be
required to keep it globally competitive. Nestle's Peter
Kelly says the company is trying to lessen the impact,
offering financial and job counselling, transfers and a
lengthy notice period.

"Whenever something like this does affect people and the
township as it does, it's something that the company takes
very seriously," he said.  "Because of that, I guess in an
attempt to minimise the impact of the 122 positions that
will be affected by the coffee closure, we have made the
offer of voluntary redundancies across the whole."  (ABC
News Online  23-Jun-2000)

PYRAMID GROUP: 190,000 investors await money return
---------------------------------------------------
More than 190,000 investors were still waiting for their
money 10 years after the dramatic Pyramid building society
collapse, a newspaper reported today.

But the two men held responsible for the ruin of the
finance empire, former Pyramid Group directors Bill Farrow
and David Clarke, continued to run businesses and live in
relative luxury, the Herald Sun said.

"The $2 billion catastrophe is one of the biggest financial
debacles in Australian history - and so far only $1.7
billion has been repaid to depositors," the paper said,
adding that the state government was the worst hit and
taxpayers stood to lose $430 million.  "It will be another
two years before the liquidator can claw back about $70
million from the sale of remaining assets - to be handed
back to battlers who put their faith in the Geelong
societies," the Herald Sun said.

Today is the tenth anniversary of the appointment of
government administrator Ken Russell, when, just days after
the Pyramid crash, 190,000 accounts were frozen. (AAP
Information Services Pty. Ltd.  22-Jun-2000)


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

ROCKEFELLER (FAR EAST): Banker alleged to take kick-backs
---------------------------------------------------------
A private investment banker received HK$55 million in kick-
backs during a four-year stock-exchange corruption spree, a
court was told yesterday.

Kevin Lee Kwok-wing was alleged to have taken "secret
commissions" from third parties including chairmen and
managing directors of four listed companies in return for
buying shares during placement exercises, according to
prosecutors.

It is alleged the purchases were made on behalf of
Rockefeller (Far East), the Asian arm of the New York
investment firm, where the 41-year-old worked as managing
director from September 1990 to October 1996.  Lee is
accused of not acting in the best interest of his employers
and of not seeking or receiving permission to accept
advantages for buying the stocks.  He denies 18 fraud and
corruption charges.

The public companies concerned were AWT World Transport
Holdings, Styland Holdings, Pacific Andes International
Holdings and Tem Fat Hing Fung (Holdings).  AWT boss Alfred
Lam King-ko in February 1993 put HK$2.1 million into a bank
account controlled by the accused after Rockefeller paid
HK$21 million to take up 12 million shares during a
placement, the court was told.

In March 1993, Lee is alleged to have accepted a bribe of
HK$4 million - paid in two casino cash cheques - from
Kenneth Cheung, chairman and major shareholder of Styland
Holdings.  This was in return for Rockefeller and the
Government of Singapore Investment Corp (GIC) buying 24.16
million Styland shares, it is alleged. Lee is accused of
then bribing GIC's Asia-Pacific regional manager Eddie Taw
Cheng-kong HK$1 million for the purchase.

Prosecutor Bernard Ryan told the Court of First Instance
that in August 1995 Lee received 3.15 million shares in
Pacific Andes from its managing director, Ng Joo-siang.
This was an alleged reward for Rockefeller's purchase of
nine million Pacific Andes shares during a placement. The
accused then in turn gave 1.575 million shares to GIC's Mr
Taw, the jury heard.

Lee took HK$1.37 million from Alexander Chan Fat-leung,
managing director and major shareholder of Tem Fat Hing
Fung Holdings, Mr Ryan continued.  The money was in return
for Rockefeller and GIC purchasing shares in the company in
August 1993, the prosecutor said.

Lee also received HK$21.59 million from broker Robin Lam of
PBI Securities. On 16 occasions, the jury heard, money was
paid for Rockefeller's purchase of various stocks during
1993.  Lee is also accused of taking part in a scheme
devised by Robin Lam to ramp the share price of Rhine
Holdings between September 1995 and March 1996.

It is alleged that on four occasions, Lee accepted HK$2.15
million in cash - which he kept in a safety deposit box -
in return for Rockefeller buying 20.5 million Rhine shares
to help manipulate its price.  However, the share price
fell sharply in March 1996, Robin Lam fled Hong Kong, and
Lee was forced to honour guarantees he had entered into,
the jury heard.

The accused then conspired to sell Rockefeller's Indonesian
and Malaysian stocks at below market price to make a quick
profit of HK$4.43 million, prosecutors claim.  Other
charges relating to trading on the Melbourne branch of the
Australian Stock Exchange were read out to the jury
yesterday.

In all, Lee faces 11 counts of accepting an advantage, one
of conspiring to accept an advantage, three charges of
offering an advantage and three of conspiring to defraud.
His conduct came to the attention of the Securities and
Futures Commission in April 1996 when unusual trading in
Rhine Holdings was detected, Mr Ryan said.  An ICAC
investigation then followed, and Lee was charged in 1998.
The case before Mrs Justice Verina Bokhary continues.
(South China Morning Post  23-Jun-2000)


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

ROBBIE SUMAMPOW: $5.5M judgment imposed against him
---------------------------------------------------
Christmas Island casino developer Frank Woodmore yesterday
won a three-year legal battle against his former business
associate, Indonesian businessman Robbie Sumampow.

The Supreme Court ordered Mr Sumampow to pay Mr Woodmore
more than $5.5 million for his shares in the company behind
the Indian Ocean complex.  But the victory may turn out to
be hollow, with questions remaining on whether the court's
decision can be enforced in Indonesia.

"That's a very moot point - we're investigating that, we
don't really know," Mr Woodmore said yesterday after the
judgment was handed down.  "There's a major issue here as
to whether (Mr Sumampow) wants to protect his international
credibility as a businessman."

Justice Desmond Heenan found Mr Sumampow, a reputed close
associate of the Suharto family, had wrongfully refused to
pay the outstanding balance of $4.5 million on a deal to
buy the 10 per cent stake in Christmas Island Resorts Pty
Ltd held by Mr Woodmore's private company, Mercator
Property Consultants. Mr Sumampow holds the remaining 90
per cent stake in the company.

The shares currently have no value. CIR, the former
operator of the failed casino and resort complex, was
placed in liquidation in late 1998 and the complex was
recently sold by liquidator Jeff Herbert to Sydney
technology company Softstar for $5.7 million.

Justice Heenan also ordered Mr Sumampow to pay interest of
more than $1 million on the sum, as well as the costs of
the action, and ruled that further interest would accrue at
the rate of 10 per cent a year until payment.  Under the
terms of the original share sale agreement, made in June
1997, Mr Sumampow agreed to buy Mercator's 10 per cent
holding for $5.1 million, subject to the satisfaction of
four conditions within 40 days.

The amount was to be paid in two instalments. However, the
conditions were not all met until December that year.
Both parties had agreed to an extension of the payment
deadline to August 15 and Mercator's lawyers told the court
the deadline was extended again until the first payment of
$250,000 was received on December 24.

Mercator said it was then approached in February 1998 by a
representative of Mr Sumampow to make $350,000 payable
immediately and the $4.5 million balance payable on July
31. Mercator received a payment of $350,000 in March, but
no further money was paid.  Mr Sumampow lodged a cross
claim for the return of the $600,000 paid to Mercator,
claiming no extension to the agreement had been made after
August 15 and he was not bound to continue with the deal
because the conditions were not met by that date.

He suggested the two payments of $250,000 and $350,000 made
to Mercator in December 1997 and March 1998 had been agreed
to as a compromise for the dissolution of the contract.
However, in dismissing the cross claim Justice Heenan found
the payments made by Mr Sumampow after the agreed extension
date showed he intended continuing with the deal.

Lawyers for Mr Sumampow had also claimed the agreement
contained implied terms that Mercator would do nothing to
lessen the value of the shares or the casino asset and that
the appointment of an administrator to the casino by Mr
Woodmore had breached those terms.  But Justice Heenan
found the evidence fell far short of proving Mr Sumampow's
claim and said in his opinion the appointment of a receiver
to the asset was the only reasonable approach for Mercator
to take. (The West Australian  17-Jun-2000)


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

EIE INT'L CORP.: Court declares bankrupt
GENERAL LEASE CO.: Court declares bankrupt
------------------------------------------
The Tokyo district court has declared real estate developer
EIE International Corp. and its affiliate General Lease Co.
bankrupt.

The pair had combined liabilities of 600.9 billion yen,
according to Teikoku Databank Ltd., a private credit
research agency.  In late May, Japan's Resolution and
Collection Corp., the government-backed debt collection
agency, filed bankruptcy proceedings against the two
financially troubled companies.

RCC took over EIE-related nonperforming loans from the
failed Long-Term Credit Bank of Japan (LTCB) and the so-
called "jusen" housing loan companies and others, and took
the bankruptcy route due to EIE and its affiliate's lack of
definiteive plans for debt repayment.

According to Teikoku, EIE's 476.4 billion yen debt is the
third largest among failed companies this year after Life
Co. and Japan Building Project Co. Teikoku reports that EIE
was battered due to the collapse of the so-called "bubble
economy" period of asset inflation, during which the
company invested heavily in real estate, particularly in
hotels and office buildings, both in Japan and overseas.
The investments were backed by loans from LTCB and jusen
companies.

MDI CORP.: To reduce group borrowing over 3 years
-------------------------------------------------
Real estate company MDI Corp. will reduce its consolidated
borrowings by 75 billion yen to 150 billion yen by the end
of March 2003.

That represents a 33 percent decrease from March 2000,
according to company sources. It plans to effect the cut by
raising cashflow.  The company expects its strong
performance in its apartment construction business to
continue and its profit from its apartment rental business
-- which accounts for 40% of group sales - to increase.
The company plans to reduce group debt by 10 percent to
about 200 billion yen by 31 March 2001.

MDI projects its rental business' ratio of gross profit to
sales to rise this year by 6 percent to 20 percent as the
result of a sharply higher occupancy rate. That rate has
been going upward last autumn when the company introduced
monthly contracts.

In the year ended March, group borrowing, including bonds,
peaked at 362.8 billion yen and group debt had declined 38
percent to 225.1 billion yen.

SOGO CO.: Gov't considering bailout
-----------------------------------
The Japanese government is considering using public funds
to help bail out Sogo, the troubled department store
operator, which is teetering on the brink of survival, it
emerged yesterday.

Sogo, struggling under Y1,700bn (Pounds 10.5bn) of group
liabilities, recently asked its main creditors to waive
Y632bn of debt in an unprecedented request. The retailer,
which also has a capital deficit of Y580bn, has been
badly hit by the country's long-running recession and over-
expansion during the "bubble" years.

It is extremely rare for the government directly to use
public funds to rescue a company outside the banking
sector. But Shinsei Bank, the nationalised bank recently
sold to US investors, is considering asking the government
to buy its Y200bn portfolio of loans to the retailer. Sogo
is currently appealing to Shinsei, its second-largest
creditor, to forgive around Y97bn of these loans.

If Shinsei chooses this option - made available under the
terms of last year's sale - the bank would effectively be
refusing to shoulder the risk of the remainder of the loan
souring. In contrast, many other creditor banks are
considering agreeing to Sogo's request - a move which would
cause less, short-term damage to their balance sheets than
if the retailer collapsed. Hopes that the government would
also agree yesterday led Sogo's shares to surge nearly
20 per cent.

But analysts warned this could set a dangerous example for
the country's horde of companies that are are also
struggling to survive.

"(The government) risks setting a precedent that when
companies ask for debt forgiveness - and Shinsei Bank is
one of the lenders - the taxpayers' purse is open," warned
Ken Okamura, strategist at Dresdner Kleinwort Benson in
Tokyo.

The government yesterday insisted it would consider the
overall burden for the taxpayer. But it also said it would
weigh other factors, such as rising unemployment and social
unrest, which could be sparked by Sogo's collapse. The move
would put further pressure on public debt, which is
expected to balloon to more than Y640,000bn this year.

"In the government's search for solutions to asset quality
problems - in and out of the banking sector - it is not
clear that minimising the use of public funds is a top
priority. This is normally a key consideration in (many)
other countries," said James Fiorillo, banking analyst at
ING Baring Securities in Tokyo.

It is also unclear whether this would really be the
cheapest for the country or the banks in the long-term -
especially if Sogo continues to record large losses and
expand its liabilities. Although it has promised to
restructure its business in return for loan forgiveness,
many analysts suspect these measures will not be enough to
save the company.

"The eventual cost of a resolution could be much higher,"
said Mr Fiorillo.  (Financial Times  22-Jun-2000)


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

DAEWOO MOTOR: Bidding war to heat up by Monday
----------------------------------------------
South Korea's Hyundai Motor Co. is pressing car giant
DaimlerChrysler to complete a joint bid for Daewoo Motor
Co., officials said Thursday as the race to take over the
insolvent Daewoo intensified.

"Negotiations are under way with DaimlerChrysler. We hope
agreement will come before Monday, even though details will
be kept secret," Hyundai Motor spokesman Park Chan-Keun
said.

Monday is the deadline for initial auction bids for Daewoo,
once the country's second largest car maker, which
collapsed last year. Italy's Fiat and US giants Ford Motor
Co. and General Motors Corp. (GM) are also in the race.
There has been major restructuring in the South Korean car
industry, since the country's financial crisis erupted in
1997, with Renault of France taking over the bankrupt
Samsung Motors earlier this year.

Hyundai Motor, which controls 70 percent of South Korea's
auto market, has pursued a joint bid with German-US giant
DaimlerChrysler to avoid charges that a Hyundai takeover
would create a monopoly.

"The biggest issue is the issue of a monopoly. Hyundai
would have 100 percent of the market to itself. That is not
good for Korea," GM's chief economist Mustafa Mohatarem
said in an interview with the Korea Times.  "If you have a
seat in the board room of the two companies that have a 100
percent stake (of the market), that is a monopoly."

Hyundai has refused to disclose details of joint proposal
with DaimlerChrysler.  But the Financial Times newspaper
said the two were close to an agreement. It said a
strategic alliance might involve the German-US group
acquiring a minority stake in Hyundai.  The economic daily
quoted analysts as saying the structure of a joint bid
would give DaimlerChrysler at least 40 percent of Daewoo
and Hyundai about 20 percent.

Fiat is understood to be reconsidering a solo bid following
its formation of an induistrial alliance with GM, it said,
adding GM had discussed Daewoo with Fiat.  Daewoo creditors
have promised to complete the auction by the end of
September after selecting two candidates for final
negotiations next week.

The most important factor in the auction would be the price
offered. So far, GM and Ford, which are vying to be the
world's largest auto maker, have been tipped as the most
viable suitors for Daewoo.

GM has highlighted its three decades of business and
technology tie-ups with Daewoo, promising to make it a
production base for low-cost car platforms. The key to
restoring Daewoo's health is finding markets for the excess
production, Mohatarem said. He estimated Daewoo's financial
value at between four and five billion dollars, exluding
liabilities.

GM has offered Daewoo creditors a debt-for-equity swap,
saying if it acquires the firm, creditors could get some of
their money back straight away and recover more over time
by owning equity and sharing in profits.

Daewoo Motor, which has an annual capacity of two million
vehicles, is languishing under an estimated 8.6 trillion
won (7.6 billion dollars) in debt.  It has assets valued at
around 12.9 trillion won (11.6 billion dollars).  (Agence
France Presse  22-Jun-2000)

HYUNDAI INVEST.TRUST & SEC.:$804M infusion-6 foreign firms
----------------------------------------------------------
Hyundai Investment Trust & Securities Co. signed a
nonbinding agreement to receive a combined 900 billion won
($804 million) from six foreign companies, a senior Hyundai
spokesman said.

The six institutions are American International Group,
General Electric Capital Corp., W.L. Ross & Co. LLC, State
of Wisconsin Investment Board, Trans America, a U.S. unit
of insurance company Aegon of the Netherlands and Calpers,
the California state pension fund and also the largest in
the U.S., said Lee Jae Hwan, a spokesman for the Hyundai
unit.

The funds will be used to help bail out the Hyundai unit,
which has been struggling with cash problems since South
Korea's financial crisis in 1997 and 1998 caused many
companies to stop repaying corporate bonds, a traditional
investment for investment for the trust industry.

"It's an encouraging sign that Hyundai is getting financing
from foreign companies, without having to drain its own
funds," said Kang Seong Mo, a strategist at Dongwon
Securities. "It's an indication that international
companies may believe that Korea's troubled investment
trust management companies could survive after all."

Hyundai's Lee said the unit expects to recover from its
current cash problems with the funds and forecasts a net
income of about 400 billion won this year. The Hyundai unit
expects to receive the funds from the foreign companies
before the end of next month, Lee said.

"The foreign investment agreement is part of the company's
promise to the government earlier this year to increase its
capital this year as part of its efforts to normalize
operations," he said.

Officials at Calpers declined to comment. Wisconsin pension
fund officials could not be reached for comment.  Hyundai
units shares rose as much as 12 percent on the news.
Hyundai Securities Co. shares soared to 11,200 won; Hyundai
Electronics Industries Co., the major shareholder in
Hyundai Investment Trust, rose 7 percent to 22,400 won.

In exchange for the funds, Hyundai Investment Trust &
Securities would sell its 50 percent stake in affiliate
Hyundai Investment Trust Management for a total of 300
billion won or 20,000 won per share.  Hyundai Investment
Trust will raise another 300 billion won by selling its own
preferred stocks for 10,000 won per share, or an 8 percent
stake, through a rights offering.

The remaining 300 billion won will be raised by Hyundai
Securities Co., which will sell its preferred stocks to the
foreign companies for 15,000 won per share. The funds will
then be reinvested into Hyundai Investment Trust &
Securities by acquiring the investment trust unit's common
shares for 10,000 won apiece.

Hyundai Investment Trust & Securities had said it plans to
raise 1.2 trillion won this year by selling 600 billion won
worth of its stocks holdings, attracting 200 billion won in
foreign capital and earning 400 billion won in its current
fiscal year. The company hopes to raise another 2.2
trillion won through similar steps in the next two years.

The Hyundai unit's 870 billion won in paid-in capital has
been depleted by the industry crisis, and the firm's
liabilities exceed assets by 1.2 trillion won. (Bloomberg
22-Jun-2000)

POHANG IRON STEEL CORP.: To delay ADR pricing - weak demand
-----------------------------------------------------------
Pohang Iron and Steel Corp. (POSCO), South Korea's state-
run steel giant, may delay its planned pricing of American
Depositary Receipts (ADRs) because of weak demand, creditor
banks said Wednesday.

"We will most likely have to delay the ADR issues as
foreign investors are demanding discounts," said an
official at Korea Development Bank (KDB), the main creditor
of the steel company.

The state-owned bank was to finalize the price this week
for ADRs backed by its 6.84 percent stake in POSCO as part
of a government plan to privatizate the steel giant.
POSCO's privatization has been touted as the jewel of the
government's reform program for the public sector. KDB
officials said POSCO's existing ADR price stood at 22.16
dollars, far below the domestic share price of 103,000 won
(92 dollars).

"A discount issue would stir debate over the possible
outflow of national wealth," one official said. (Agence
France-Presse  21-Jun-2000)


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

BERJAYA SPORTS TOTO: Gaming unit hits 6-mo.low on debt woes
-----------------------------------------------------------
Berjaya Sports Toto Bhd shares plunged to a six-month low
after it said the amount of money debtors owe it had almost
doubled to RM807.7 million (S$369 million).

The debt figures were released when it announced a profit
decline of 43 per cent for the year ended April 31 to
RM251.1 million. The profit was less than an average
forecast of RM285 million, according to a Bloomberg poll.

The move raised concern that Malaysia's biggest lottery
company was using more of its cash to help its related
companies, such as parent Berjaya Land Bhd, which is
struggling to repay debt.  As of January this year, Sports
Toto had lent RM580 million to Berjaya Land, analysts said.

"Investors of Toto have been aware of" its inter-company
loans "for the past couple of years" during the recession,
said Franklin Tan, head of research at OCBC Research Sdn.
Now with the economic rebound, "investors won't give it a
chance". He downgraded the stock to "hold" from "buy".

Shares of the company slumped as much as RM1.25, or 16 per
cent, to RM6.65 -- their lowest level since Dec 3. The
slide shaved off RM719 million from its market value. That
is also Sports Toto's biggest one-day percentage drop since
Sept 8, 1998. It was the most active stock with 9.7 million
shares traded, seven times its six-month daily average.

The move underscores the persistent concern of minority
investors being left out in the cold.  Companies from
Renong Bhd, Malaysia's biggest industrial group, to KFC
Holdings Bhd, the nation's largest fast-food chain, have
faced investors' ire during the recession. That has not
stopped during the rebound.

"I'm very disappointed, they never learn and this is very
bad (in terms of corporate governance and transparency),"
said Chong Sui San, who helps manage RM800 million at
Malaysia British Assurance Bhd. She owns a "small" portion
of shares in Sports Toto.

Sports Toto's statement does not state the nature of the
debtors, or when the company would be repaid. Company
executives were unavailable for comment. (Business Times
23-Jun-2000)

IDRIS HYDRAULIC: New major s'holders set to take over
-----------------------------------------------------
The stage is finally set for a change in the "guard" of the
controlling shareholders of Idris Hydraulic (Malaysia) Bhd
-- the first such development in the company in almost a
decade.  Former executive chairman of Malaysia National
Insurance Sdn Bhd (MNI) Datuk Annuar Senawi, or his
business associates, are expected to assume control of
Idris as they emerge as major shareholders of the debt-
laden company.

A deal is believed to have been struck to pave way for the
entry of the new controlling shareholders into Idris, which
is undergoing a debt-restructuring exercise. The group has
RM400 million in debts.

Parties close to the corporate deal say some announcement
on the company's developments concerning this matter might
be forthcoming before the end of this month or by next
month.  One of them says Idris' creditors are scheduled to
meet on the company's debt-restructuring exercise before
its annual general meeting on June 30.

Sources say the creditors are believed to have accepted the
proposal worked out by Annuar, or his business associates,
with the Corporate Debt Restructuring Committee (CDRC).

The proposal is likely to be approved at the creditors'
meeting next Friday. Idris' major creditors include the
AMMB group and stockbroking-based TA group. The debt-
restructuring exercise, if it proceeds smoothly, is to be
completed by the fourth quarter of this year.

The proposal worked out by the CDRC includes the injection
of not more than RM200 million by the new controlling
shareholders into Idris to address some of the debts.
In return for the cash injection, the new parties are
likely to be issued Idris shares, which will enable them to
gain control of the company.

As for the balance of the debts, sources say this would
come in the form of the issuance of debt instruments such
as loan stocks. Idris is expected to come up with a rights
issue and capital reduction under the proposed exercise.

The new controlling shareholders are likely to underwrite
the new shares of the rights issue unsubscribed by the
holders of the Central Limit Order Book (CLOB) shares. Some
55.35 per cent of shareholdings in Idris, or 328 million
shares of 50 sen each, are held in CLOB through the Central
Depository (PTE) Ltd.

A source says: "The parties are said to have finalised the
corporate restructuring deal and one can expect some
announcements soon."

Annuar's entry into Idris, to some, may be seen as a "white
knight" move to solve its whopping debt problems. However,
it is unknown if he wants to be appointed to Idris' board.
By assuming control of Idris, Annuar will own the multi-
storey Wisma Idris located in the central business district
in Kuala Lumpur, the Sagisan concession in Sabah and
Talasco Insurance Bhd, which is considered the jewel in the
group.

Annuar has been involved in the insurance industry for over
20 years. He left MNI in 1995. Some insurance players say
he was always eyeing for some action in the business.
Therefore, Talasco will present him with the right
platform, especially with the on-going consolidation of the
insurance industry.

The latest development is likely to see a change in the
management of the company. Some senior executives would
probably make way for new faces.  Sources claim that two of
Annuar's business associates -- Datuk Dr Abdul Razak Abdul
and Mohd Mahyudin Zainal -- have already been appointed as
directors of Idris since March.

They add that 49-year-old Abdul Razak was already calling
the shots in Idris and any major decisions would have to go
through him first. Abdul Razak, a former senior executive
with the then UMBC Insurans Bhd, is also on the board of
Widetech (Malaysia) Bhd, Kemayan Corporation Bhd, FACB
Industries Bhd and Petaling Tin Bhd.

Mahyudin, a 31-year-old lawyer, handles the legal side of
the company.  Idris executive director Datuk Ishak Ismail
has been with the company for almost 10 years, after
gaining control of it from Marina Yusoff and Datuk Harun
Idris in 1991. Therefore, will he make his exit from Idris
with this development?  (The Edge  21-Jun-2000)

PUNCAK VISTA SDN: Still in default of credit facilities
-------------------------------------------------------
United Engineers (Malaysia) Bhd said its 30-pct owned
associate company Puncak Vista Sdn Bhd is still in default
of credit facilities involving a 363 mln rgt syndicated
term loan and convertible bank guarantee facility, and a 30
mln rgt revolving credit facility.

In a statement to the Kuala Lumpur Stock Exchange, United
Engineers said as at April 30, Puncak Vista had fully
utilised its term loan facility as well as a total 6.115
mln rgt of its revolving credit facility.  The principal
due on its term loan facility as at April 30 was 363 mln
rgt and interest due was 106.214 mln rgt, while principal
and interest due on its revolving credit facility was 6.115
mln rgt and 1.647 mln, respectively.

Both facilities are secured against Puncak Vista's 32.3
acres of land in Kuala Lumpur and a debenture over all of
the company's assets.  The said debenture empowers the
agent bank for the facilities to appoint a receiver and/or
manager in the event of default, but Puncak Vista has yet
to receive such notice, United Engineers said.  (AFX News
Limited  21-Jun-2000)

UNITED ENGINEERING: To assume PLUS bonds prior to IPO
-----------------------------------------------------
United Engineers (Malaysia) Bhd (KLSE:UTEM) wants to assume
the bonds issued by Projek Lebuhraya Utara Selatan (PLUS)
prior to the listing of the North South Expressway toll
operator, said managing director Dr Ramli Mohamad
Wednesday.

The assumption of the bonds was inter-conditional upon
approvals from the authorities, creditors, shareholders and
if the initial public offer (IPO) of PLUS were to go ahead,
he said.

"If the IPO doesn't happen, everything stays as it is," he
told a press conference after the company's annual general
meeting in Petaling Jaya near here.

The migration of the PLUS bonds to UEM was temporary and
was meant to maximise the equity value of PLUS prior to its
proposed listing, said Dr Ramli.  By diluting its shares in
wholly-owned PLUS to between 75 percent and 70 percent via
the listing, UEM hopes to raise RM4 billion to RM5 billion.
This would be utilised to repay UEM's corporate debt and
PLUS bonds of RM3.3 billion.

"At UEM, we would like to be almost debt-free by the time
we are done with the PLUS IPO," said Dr Ramli.

As part of UEM's debt restructuring exercise, PLUS issued
RM8.4 billion seven-year, zero coupon bonds. The bond issue
was to settle commercial debts of UEM and its associate
company, Renong Bhd.  Early payment of the PLUS bonds would
help save about RM300 million in annual interest payments,
leading to a positive net effect on its earnings per share,
said Dr Ramli.  He also said that the equity value of PLUS
was not reflected in UEM's shares as it was locked up as a
privately held stock.

As such, he stressed that it was in the interest of UEM's
shareholders to float PLUS on the Kuala Lumpur Stock
Exchange so that there would be a benchmark on the value of
PLUS and this would then be reflected in UEM stocks. On
concerns that UEM shares would be less attractive to
shareholders following the listing of PLUS, Dr Ramli said
there would still be a group of investors who would prefer
the "excitement" and growth of UEM shares.

He disclosed that UEM currently has a construction order
book of about RM1.5 billion and the company was also
looking at and creating new opportunities.  Dr Ramli said
UEM intended to list PLUS before the year end but other
factors like market performance could still influence the
listing exercise.

He added PLUS's listing prospectus would be submitted to
the Securities Commission within the next few weeks.
Dr Ramli was also asked on the Securities Commission's
removal of the restriction to list subsidiaries of listed
companies that contributed over 50 percent of the group's
earnings.

"It will help us a lot. At least, we don't have to worry
about complying with the chain listing requirement for the
PLUS IPO."

PLUS contributes one third of UEM's revenue and two thirds
of UEM's profits.  Dr Ramli also said that UEM hoped to
register around RM900 million in pre-tax profit in the
current financial year ending Dec 31, 2000, a sum
similar to last year. He was also asked whether UEM would
exercise a put option made by Renong executive chairman Tan
Sri Halim Saad to acquire 722.9 million shares or 32.6
percent interest of UEM, ahead of the expriy date on Feb
14, 2001.

Dr Ramli said UEM was "sticking" to the put option
agreement. "We have up to 2001. I think we want to wait,"
he added.

To a another question, he disclosed that the other UEM
subsidiary that could be listed was wholly-owned Teras
Teknologi Sdn Bhd, a company which had been posting profits
since it was set up in 1993.  The company, which is
involved in the provision of information technology, had
achieved pre-tax profits of between RM8 million and RM10
million annually, he added. (Asia Pulse  22-Jun-2000)


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

ASB GROUP: PNB opposes rehabilitation plan
------------------------------------------
Joining the creditors which have formally opposed the
rehabilitation plan proposed by cash-strapped ASB Group of
Companies, Philippine National Bank (PNB) filed before the
corporate regulator yesterday its bid for the denial of the
Roxas-owned firm's financial recovery plan.

PNB said the ASB group's petition is "fatally deficient and
should be disallowed" since there should only be one
petition for every corporation. It may be recalled that
several ASB member-companies filed a joint petition for
rehabilitation and debt suspension.

"The instant petition which combines several companies into
one, branding some corporations as insolvent, and the
others as technically insolvent would be a confusing
process because this would lump together not only the
individual corporations concerned but also all the
different creditors of each corporation," PNB said.

Moreover, PNB pointed out that some ASB member-companies --
particularly ASB Holdings, Inc. -- are under the
jurisdiction of other government agencies, and the consent
of such agencies has not been obtained. PNB further alleged
that ASB Holdings is considered to be engaged in quasi-banking
operations, which should be licensed and regulated by the Bangko Sentral
(Central Bank of the
Philippines).

Before it can file a petition for rehabilitation, it should first present
proof of the consent of the regulating
government agency. The semi-private bank urged the SEC to determine if the
ASB Group has complied
with the lawful process of rehabilitation and determine whether the
corporate activities are also bona fide
and lawful. (Business World  22-Jun-2000)

NATIONAL STEEL CORP.: Equitable PCI Bank rejects rehab plan
-----------------------------------------------------------
Equitable PCI Bank wants the Securities and Exchange
Commission (SEC) to dismiss National Steel Corp.'s (NSC)
bid for rehabilitation after it accused the debt-laden
steel maker and its president of forum shopping to delay
creditors' claims.

In a petition filed with the corporate court yesterday,
Equitable said NSC's petition should be dismissed for
violation of the rule on non-forum shopping.  The bank said
filing of two simultaneous remedies by NSC -- both directed
against the foreclosure of properties in Iligan City -- is
a direct violation of the rules of procedure of the SEC.

Equitable alleged further that NSC president Ibrahim Bin
Bidin "willfully violated the rule against forum
shopping...when he certified under oath that there is no
similar or pending action in other courts...when the
petition for rehabilitation was filed."

A day before the rehabilitation petition was submitted, NSC
filed a complaint with the Iligan regional trial court
(RTC) for injunction to enjoin the creditor bank from
foreclosing the properties.  A temporary restraining order
was issued by the RTC. The bank also expressed doubts about
the viability of NSC's revised rehabilitation proposal. The
plan is contingent on the entry of a strategic investor who
will infuse the much-needed fresh capital.  (Business World
22-Jun-2000)

PB COM BANK: Shareholders okay downgrade of status
--------------------------------------------------
Philippine Bank of Communication (PBC) said Wednesday its
shareholders have approved the downgrade of its universal
bank status to commercial bank.

In a statement, PB Com said the downgrade will hinder the
bank from operating non-commercial banking operations such
as investment banking and fund management.  A Bangko
Sentral ng Pilipinas regulation states that only commercial
banks with expanded licenses, usually given to universal
banks, will be allowed to operate investment banking
ventures.

PB Com said its shareholders have also approved an increase
in the bank's authorized capital to P14.5 billion from P6.5
billion by issuing stocks rights and warrants offering.
PB Com shareholders can buy three shares for one share
held.  (ABS/CBN News Channel  21-Jun-2000)

PHILIPPINE TEL.& TEL.CORP.: Ailing firm's prospects bleak
---------------------------------------------------------
Cash-strapped Philippine Telegraph and Telephone Corp.
(PT&T) is unlikely to recover from its poor financial
position and unprofitable telecom operations within the
near term due to its huge debt and low subscriber uptake,
according to a local credit rating agency.

In an assessment of PT&T's financial risk profile,
Philippine Rating Services Corp. (PhilRatings) analyst
Thomas Sulit painted a bleak scenario for the company.
He noted that PT&T continues to remain in a very vulnerable
position due to operational weaknesses and the likelihood
of default in its obligations.

Sulit pointed out that the key to PT&T's survival, aside
from restructuring its P7-billion liability, is its ability
to grow its subscriber base which is only estimated at
60,000. "We do not see this happening in the near term," he
said.

While PT&T is mandated to install at least 300,000 lines in
its service areas of Laguna, Rizal, Marinduque, Quezon,
Romblon and Aurora, the company was only able to lay down
about half of the required number of lines.  PT&T's
financial trouble started in 1997 when the Asian Currency
crisis hit while the carriers were in the midst of their
fixed line rollout programs.

Aside from affecting the demand for telecom services and
the credit quality of customers, Sulit said the crisis also
increased the cost of pursuing the project, thereby,
pushing the company's capitalization ratio to very high
levels.

Since 1995, PT&T's total debt accounted for more than 60
percent of its capitalization structure.
Although there was a plan for Republic Telecommunications
Holdings Inc. (Retelcom), PT&T's mother company, to infuse
additional capital, the move did not materialize due to
disputes among shareholders.

"Profitability has suffered in the wake of these
developments. Revenues have not grown significantly
relative to other players in the light of its low
subscriber base. Whatever operating income PT&T generates
is eaten up by its ballooning interest expense owing to the
very high debt levels of the company. Collection problems
further compound the situation," he explained.

Sulit also said that technological developments, coupled
with heightened competition, have also negatively affected
the company's position.  He noted that the popularity of
traditional low-speed transmission services like telegram
and telex which is PT&T's stronghold, declined immensely
through the years.  (Philippine Star  22-Jun-2000)

PILIPINO TELEPHONE CORP.: Inks debt restructuring pact
------------------------------------------------------
After almost a year and a half of negotiations, beleaguered
cellular firm Pilipino Telephone Corporation (Piltel) has
finally earned the approval of creditor-banks for the
restructuring of its 13-billion Philippine peso ($0.304-
billion at PhP42.693=$1) debt.

Piltel, together with parent firm Philippine Long Distance
Telephone Company (PLDT), yesterday signed the Master
Restructuring Agreement (MRA) with its local and foreign
creditor-banks in a private ceremony at the Far East Bank
Center in Makati City in central Metropolitan Manila.

The MRA defines the framework and parameter for the
restructuring of Piltel's obligations, as well as PLDT's
participation in the resuscitation of the cellular firm.
With its debt restructuring approved, Piltel will have its
debt repayment schedule moved back and will enjoy much
lighter terms, giving it more leeway to focus on improving
operational efficiency which, industry analysts said, has
been put aside since management started plotting debt
arrangements with the banks.

Together with bank representatives, PLDT president and
chief executive officer Manuel V. Pangilinan signed the MRA
with Piltel president and CEO Napoleon L. Nazareno.

However, telecommunications industry analysts said the debt
restructuring is only one of the first steps for Piltel's
rehabilitation, since the restructured debt represents only
37% of its total PhP34.9-billion ($0.817-billion)debt, with
bondholders and Japanese supplier Marubeni Corp. holding
the rest of the loan exposure.  In a telephone interview, a
PLDT official said the negotiations with creditors will be
done one at a time.

"We are following a chain process here...after the banks,
we deal with the bondholders and then Marubeni," said the
official, who asked not to be named.

He added PLDT will be offering bondholders the "same
economic benefits" as with banks.  Earlier, the creditors
themselves insisted on having the same terms, such that no
arrangement will be "superior nor inferior" with the other.

"(The terms that will be offered to bondholders) will be of
similar terms with the banks, although it has to be phrased
differently as some terms are quite specific for banking
operations. The more appropriate term to use is that
creditors will have same economic benefits," said the
official yesterday.

Piltel, which has an ongoing negotiations with Marubeni,
keeps the Japanese supplier informed of the progress of
debt talks.  Piltel owes Marubeni $279 million, which was
spent on the required rollout of 400,000 landlines in
Mindanao.  PLDT has likewise committed capital infusion of
$150 million to assist Piltel's rehabilitation and
repayment of its obligations.

For the first year, PLDT will infuse around $3 million to
$4 million, with the remainder spread in the succeeding
years.  PLDT's foreign partner, NTT Communications, the
fully-owned subsidiary of Japan telephone giant Nippon
Telegraph and Telephone Corp., limited the company's
infusion to Piltel at only $150 million.

The MRA merely reflects the indicative terms in the
memorandum of understanding signed by Piltel and creditor-
banks in October last year.  Based on the terms approved,
Tranche A involves conversion of 50% of the debts to
convertible preferred Piltel shares.  These shares can then
be converted into PLDT convertible preferred shares, which
eventually can be converted into PLDT common stock.  The
shares will have an interest of 1.1% annually.

Under Tranche B, 25% of Piltel's debts will have a 10-year
repayment term.  Nominal amortizations will be made
starting the third year until the ninth year and the loan
balance will be paid in a lump sum at the end of the 10th
year.  In Tranche C, the remaining 25% debt will have a 15-
year repayment term whereby payments will start on the
third year.

Piltel will pay amortizations equivalent to 10% of the
principal loan amount, beginning on the third year to the
14th year.  The balance will be paid at the end of the 15th
year.  Of the almost 30 creditor-banks, the Land Bank of
the Philippines has the biggest exposure with PhP2.175
billion ($0.051 billion).

The seven other big creditors are Chase Manhattan Bank
N.A., Bank of America NT & SA, Philippine Commercial
International Bank, Far East Bank and Trust Co., Deutsche
Bank, Bank of the Philippine Islands and Credit Agricole
Indosuez.  Other creditor-banks are Banco Santander, Bank
of Commerce, China Banking Corp., Global Bank, HSBC,
Philbank, United Coconut Planters Bank, ING Bank, Banque
National de Paris, Citibank N.A., Credit Lyonnaise,
Marubeni Corp., Standard Chartered Bank and the US Export-
Import Bank.

Piltel's debt problem was aggravated by its aggressive
expansion in 1997, when it invested on anti-cloning
facilities to protect its predominantly analog subscribers.
Earlier reports claimed the company's total capital
expenditures in 1998 reached PhP13 billion ($0.304
billion), while it only made PhP1.4 billion ($0.033
billion) in revenues. (Business World  22-Jun-2000)

TRADERS ROYAL BANK: Bad loans hinder Bancommerce merger
-------------------------------------------------------
The proposed merger of Cojuangco-controlled Bank of
Commerce (Bancommerce) and the Benedictos' Traders Royal
Bank (TRB) still hangs in the balance despite being
"approved in principle" by the Bangko Sentral (Central Bank
of the Philippines).

Getting in the way of the banks' final merger,
BusinessWorld learned, is the 1.7 billion Philippine pesos
(PhP) (US$39.84 million at PhP42.671:US$1) worth of
"doubtful accounts" Bancommerce has asked the central bank
to absorb.  According to an industry source, a large
portion of the bad accounts are loans by TRB directors,
officers, stockholders and other related interests (DOSRI).

"These are sticky loans and will be a burden on the bank
(Bancommerce)," the source added.

Bancommerce president Raul B. de Mesa had said the bank has
proposed to be paid in Treasury bills for TRB's
nonperforming assets.  The proposed deal carries with it a
buyback arrangement, which would require Bancommerce -- the
surviving entity -- to repurchase from the central bank
TRB's non-performing assets "at face value" after more than
five years.

"We need this so we will have the means to service other
obligations," the source said.

For Bancommerce to enjoy this incentive, the Bangko Sentral
has required it to infuse fresh equity of between PhP200
million and PhP300 million ($4.68 million and $7.03
million) into TRB.  Bancommerce's capital currently stands
at PhP3.5 billion ($82.02 million), after a recent 300-
million-peso ($7.03 million) equity infusion by existing
shareholders.

Aside from TRB, Bancommerce is also keen on acquiring Urban
Bank, Inc. and its investment house, Urbancorp Investments,
Inc. (UII). Bancommerce will be the surviving entity in a
merger with Urban Bank and UII.

"That will be a separate activity. It will run parallel to
the merger with Traders," the source said, referring to the
Urban Bank acquisition.

Compared with TRB, the source said Urban Bank has a smaller
level of DOSRI loans. "Its loans are adequately secured.
Most of the DOSRI are loans to affiliates," the source
added.  Urban Bank has PhP4 billion ($93.74 million) in
total investments in real estate, which it could not
liquefy due to the prevailing slump in the real estate
sector.

The source said Bancommerce's "first priority" will be
Urban Bank. It will then see if it can "still digest
additional acquisitions" if it succeeds in the
uisition(
Business World 21- June-2000)


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

KEPPEL MARINE INDUSTRIES: To be reorganized
-------------------------------------------
Keppel Marine Industries is to be reorganised into a
venture capital company funding Internet businesses. The
company will have initial capitalisation of about S$ 500
million (about HK$ 2.24 billion) and will include The
Development Bank of Singapore and Singapore
Telecommunications as shareholders. Keppel Marine is a part
of Keppel Corp, a government-linked conglomerate with
diversified interests ranging from telecoms to banking.
(South China Morning Post  22-Jun-2000)


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

MODERN HOME DEVELOPMENT: Hong Kong firm is new partner
------------------------------------------------------
The Hong Kong Resort Group won a closed bidding round last
Friday to become a strategic partner of cash-strapped
developer Modern Home Development Plc (M-Home).

The developer and its financial adviser, Jones Lang
LaSalle, will not give details of the bidding until a
formal agreement is signed tomorrow.  M-Home yesterday told
the Stock Exchange of Thailand (SET) that it would call a
shareholders' meeting on June
30 to approve the
partnership.  A source close to the contract said Hong Kong
Resort would hold up to 75% of M-Home and take over the
day-to-day management.

"In general, equity participation plans proposed by bidders
last Friday were not different. I think M-Home and its
creditors selected the winner from the proposed injection
of cash to shore up the firm," the source said.

Before bidding ended, Hong Kong Resort and US-based Lehman
Brothers expressed strong interest in acquiring M-Home. The
Hong Kong developer proposed 275 million baht, while Lehman
Brothers offered 300 million baht. But both deals were
rejected by the developer's creditors.

Lehman Brothers and another developer, Charn Issara Group,
earlier planned to boycott the closed bidding contest,
accusing M-Home of using their plans as a benchmark in
selecting strategic partners.

However, M-Home was confident that about six investors
would make bids.  The exact offer by Hong Kong Resort has
not been revealed but a source close to the deal said it
was definitely higher than the 300 million baht quoted
earlier by Lehman Brothers.

One industry observer said he still questioned the
transparency of the bidding process and why M-Home and its
adviser had not revealed details since Friday. M-Home's
executives and Longlom Bunnag, director of Jones Lang
LaSalle, who helped co-ordinate bidding, were not available
for comment. (Bangkok Post  22-Jun-2000)

UBOLSAHATHAM KONSONG: Rehabilitation petition accepted
------------------------------------------------------
The Central Bankruptcy Court has accepted a petition for
business rehabilitation from Ubolsahatham Konsong (1983), a
construction and transport company that owes 662.8 million
baht to 81 creditors.

Ubolsahatham Konsong was among many contractors that had
won public-sector construction projects, mainly for
highways. The recession later resulted in the suspension or
cancellation of many projects, and the company was not able
to service its debts on time.

Creditors and debtors agreed earlier to appoint Arthur
Andersen as a financial adviser and to propose Vichitra
Lilavitmongkol to prepare a business restructuring plan. A
hearing is scheduled for July 19. (Bangkok Post  22-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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