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

                             A S I A   P A C I F I C

             Monday, June 26, 2000, Vol. 3, No. 123

                                     Headlines


* A U S T R A L I A *

FIRST CHARTER MORTGAGES: Director charged with fraud
GREYHOUND PIONEER: Receivers appointed
KOGAN CREEK: Project investors reel from financing collapse
TRANSFIELD: Reorganizing the company due to cost overruns
UNIT SHELF 51 CO.: Director charged with fraud
WALLARAH COLLIERY: 100-year-old coal mine closes


* C H I N A  &  H O N G  K O N G *

CHI CHEUNG INVESTMENT: Chinese Estates takeover proceeding
HONTEX MANAGEMENT LTD: Facing winding up petition
LUCKYEAR LTD: Facing winding up petition
MERRYFIELD LTD: Facing winding up petition
YIELDFULL INDUSTRIAL LTD: Facing winding up petition
ZHONG YA ENTERPRISES LTD: Facing winding up petition


* I N D O N E S I A *

PT BAKRIE SUMATERA PLANTATIONS: Signs pact with creditors
PT BANK BALI: Parliament mulls bailout
VOKSEL ELECTRIC: Seeking debt restructure


* J A P A N *

FR CORP.: Lowers net loss projection, ups pre-tax loss
GARBAN-INT'L PLC TOKYO: SESC calls for penalty
NIPPON CREDIT BANK: Regional banks eye stake
NIPPON CREDIT BANK: Consortium lining up investors
SEIYO CORP.: Saison Group to shoulder 90B yen for Seiyo


* K O R E A *

DAEWOO MOTOR: Report Daimler-Hyundai agree on joint bid
DAEWOO MOTOR: Hyundai-Daimler alliance in stalemate?
HANVIT BANK: To sell nonperforming loans
WOOBANG HOUSING & CONSTRUC.: Fails to pay 1.9B won debt


* M A L A Y S I A *

KUALA LUMPUR INDUS.HLDGS.: Developer Lim poised to takeover
MALAYSIAN GENERAL INVEST.CORP.: To sell stockbroker arm
SIN HENG CHAN(MALAYA): Proposes cash call to cut borrowings
UNITED ENGINEERING MALAY.: Affiliate to finish rehab soon


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

PHILIPPINE NAT.BANK: Lewis-RCBC team-up seen
PHILIPPINE NAT.BANK: Share sale aims to rescue bank
PILIPINO TEL.CORP.: Finalizing debt talks  
REYNOLDS PHIL.: Encounters obstacles in servicing debts
WESTMONT INVEST.CORP.: Firm eyes control of parent


* T H A I L A N D *

KRUNG THAI BANK: Approves writedown
PRECIOUS SHIPPING: Reports rehab progress to SET
UBOLSAHATHAM KONSONG: Bankruptcy court accepts for rehab


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

FIRST CHARTER MORTGAGES: Director charged with fraud
UNIT SHELF 51 CO.: Director charged with fraud
----------------------------------------------------
Police attached to the fraud squad in Western Australia
have laid more charges in relation to the state's finance
broking scandal, charging two more men with fraud: Gregory
James Kennedy of Bicton and Graeme John Perry of Willeton.

It is alleged Mr Kennedy, a director of Unit Shelf 51
Company, fraudulently took out loans totalling more than
$3.3 million.  Police claim he took out the loans through
mortgage broker Blackburne and Dixon to purchase and
refinance loans for a motor inn at Busselton.  They claim
he induced people to invest in the project by providing
false information.

Mr Perry, a director of First Charter Mortgages, has been
charged with eight counts of fraud.  It is alleged he
misled investors about a proposal to purchase and develop a
property at Armadale.  Both men are due to appear in the
central law courts next week. (ABC News Online  24-Jun-
2000)

GREYHOUND PIONEER: Receivers appointed
--------------------------------------
Receivers and managers have been appointed to coach
company, Greyhound Pioneer Australia Limited.

Greyhound's 48 per cent shareholder, Duncan Saville,
appointed receivers on Thursday night. Entities associated
with the businessman are owed about $9.2 million.  Mr
Saville's vote quashed the coachline's hopes of a $15.3
million sale deal with regional operator Nowra Coaches last
week.

While the Nowra deal would have fully paid debts, Mr
Saville is believed to have wanted to consider a last-
minute cash and scrip bid from rival coachline McCafferty's
which valued Greyhound Pioneer at about $9 million.
Receiver Ferrier Hodgson's Greg Moloney, now seeking a
buyer, said all operations would continue as normal.

"All I can say at present is that I will be independently
assessing all options that are in the best interests of all
the stakeholders," Mr Moloney said.

Greyhound Pioneer chairman Stephen Jones, who had been
attempting to negotiate a fresh deal with Nowra Coaches
when the receivers were called, said the move was
"inevitable. I think it's no secret that the company's been
distressed for some time now," Mr Jones said.

Mr Jones said there had not been any adverse reaction from
passengers to the receivership.  Greyhound Pioneer has
appointed its own administrator, Rick Dennis of Ernst &
Young, who called meetings with creditors for Friday.
However, Mr Dennis's role is outranked by the receivers who
will be negotiating the sale of the coachline.

While McCafferty's was reconsidering its bid, Nowra Coaches
principal John King said he remained interested in
Greyhound Pioneer.  "Certainly the price that we offered
isn't there any more because the goodwill's gone," he said.

Mr King described Mr Saville's action as "quite aggressive.
I wouldn't have thought as an investor that he would want
to play this game," he said.

Ferrier and Hodgson says it will be business as usual for
Greyhound Pioneer while an assessment of the company's
financial position is carried out.  (ABC News Online, The
Advertiser  24-Jun-2000)

KOGAN CREEK: Project investors reel from financing collapse
-----------------------------------------------------------
Project financiers reeling from the collapse of the
financing for the $1 billion Kogan Creek power station in
Queensland yesterday questioned whether banks would be
willing to undertake such work in future on a success-fee
basis.  The project was withdrawn eight days before its
$670 million loan financing was due to close.

"We would be willing to work on privatisations and asset
acquisitions on [a success-fee basis], but unlikely to do
so on a greenfield project like this," said one banker, who
did not wish to be named.

He added that Southern Co, the US-based parent of the
project's sponsor, had done little to endear itself to
local banks ahead of its expected bid for the $2 billon
privatised Victorian electricity distributor, Powercor.
The four lead banks - Bank of Tokyo-Mitsubishi, Barclays
Capital, Citibank and Deutsche Bank - and between 10 and 12
sub-underwriters were described as "extremely disappointed"
by the decision.

They had worked on the deal for nine months, suggesting
that their collective losses were likely to run into
millions of dollars. At least one of the underwriters was
said to be at risk of failing to meet its syndicated
lending budget this year as a result of the decision.

The financing was terminated when the Queensland Government
announced that the project's sponsor, Southern Energy Asia
Pacific, had joined State-owned generator CS Energy to
develop the Swanbank E gas-fired generator, and that the
controversial coal-fired Kogan Creek had been "put on hold"
until 2007.

According to one of the bankers involved, the project's
official status as delayed rather than cancelled made
little difference. "It's as good as dead. Apart from a
market meltdown, nothing was going to stop this deal. We're
extremely disappointed."

The financing's collapse darkens an already gloomy outlook
for the Australian syndicated loan markets which, according
to International Financing Review, may struggle to complete
between $15 billion and $16 billion of deals this calendar
year, compared to $20 billion to $24 billion a year for the
past four years. (Australian Financial Review  23-Jun-2000)

TRANSFIELD: Reorganizing the company due to cost overruns
---------------------------------------------------------
Potential liabilities associated with the project appear to
be the motivating force behind Transfield's decision to
undertake a spin-off of parts of its construction and
infrastructure empire.

It has been estimated that Transfield's share of the
potential time-overrun liabilities and extra costs incurred
to remedy problems could be as high as $130 million. At the
Transurban City Link annual meeting late last year chairman
Laurie Cox said the company was pursuing a liquidated
damages claim against the Transfield/Obayashi joint venture
for delays to completion of the Western Link.

While there is no suggestion that Transfield will topple
without the spin-off of its infrastructure and service
assets, there seems to be sufficient imperative to part
with its highly-prized status as a private company. And it
is not the first time the Belgiorno-Nettis family has
flirted with moving part of its operations into the public
arena.

In a newspaper interview five years ago the family told The
Australian Financial Review that it was looking at a public
float. The paper also reported that some three years
earlier the company had almost come to grief because of an
overload of projects. Since that time, the empire has been
split in two when the Salteri family broke away from
Transfield, taking with it the defence contracting
operations.

And it is almost exactly a year since the Belgiorno-Nettis
family announced it was to split the Transfield group
between its second-generation family members in what was
expected to lead to a possible float. Under last year's
proposed scenario, some of the group's infrastructure and
property assets were to be hived off into a new company,
which was to be owned by Marco Belgiorno-Zegna.

Transfield was to continue with its engineering,
construction, maintenance and infrastructure development
operations jointly owned by Luca Belgiorno-Nettis and Guido
Belgiorno-Nettis.  But in true private-company style, the
fact that this restructure was abandoned went unannounced.

And in equally guarded style yesterday, the company was
unwilling to explain why the plan had changed. All we do
know from the scant information provided yesterday is that
the bulk of the proceeds will be used to retire debt in the
holding company.

Transfield expects its spin-off to have a market
capitalisation of about $300 million, of which more than
half will be retained by the parent company. Thus, it will
raise something in the order of $150 million or a bit less.
There is another way the company could raise this amount of
money and that is to sell its 8 per cent stake in
Transurban, which is worth some $140 million at the current
share price of $3.40, and which it acquired for 50c a
share.

Presumably, Belgiorno-Nettis would rather keep this stock.
While construction of the various projects provides the
steady cash flow, the cream for a company such as
Transfield is getting a piece of the equity action in the
project right from the beginning and then riding the
upside, which is exactly what it has done in Transurban.
In order to do this it must be able to access cash
reserves.

The company says the listing will provide access to capital
markets. The spin-off might provide the solution. There is
little publicly known about the financial quality of the
assets being put into the spin-off. They include
Transfield's service business, which has an annual turnover
of $800 million and provides maintenance to industries such
as oil and gas, mining, infrastructure, defence and
telecommunications.

The float will also hold Transfield's water, power and
transport infrastructure assets.  Once a proper prospectus
is filed it will be easier to get a handle on the earnings
potential.  Transfield states in its press release that
institutional investors have always been interested in
getting some exposure to the portfolio of assets it has
built up, but whether their interests are in those being
offered, or in those being retained, will become clearer
when the sale process begins.

At this point, however, there is one clear negative in this
float and that is the size.  While a market capitalisation
of $300 million narrowly places it in the top 200, less
than half this amount will be available in the free float.
This will make it illiquid and possibly too difficult for
larger institutions.  If the issue is well priced it is
sure to attract enough attention, but its size means that
it will not be a "must have" for the index funds. (Sydney
Morning Herald  23-Jun-2000)

WALLARAH COLLIERY: 100-year-old coal mine closes
------------------------------------------------
After almost a century of operation, the Wallarah colliery
at Lake Macquarie, south of Newcastle, officially closes
today.

Coal Operations Australia announced last month it was
placing the mine in care and maintenance mode, retrenching
87 workers.  Low world coal prices were given as the reason
why the colliery was no longer profitable.  John Reid, 53,
a fitter at the mine for 20 years, says he is close to
retirement age but the closure will have a big impact on
some of the miners.

"There were some young guys that were retrenched in '92 and
came back. They're the guys that I feel sorry for," said
Reid. "My family's all grown up and [have] got children of
their own and things like that but the younger guys with
young families, they're the ones that I feel sorry for."  
(ABC News Online  23-Jun-2000)


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

CHI CHEUNG INVESTMENT: Chinese Estates takeover proceeding
----------------------------------------------------------
Chinese Estates Holdings Ltd chairman Thomas Lau said its
takeover of Chi Cheung Investment is still ongoing, adding
that the latter has already proceeded with the Scheme of
Arrangement, pending approval from the court.

Under a debt restructuring proposal, Chinese Estates has
agreed to offer 213 mln hkd in assets and 60 mln hkd in
cash for a 66.9 pct stake in Chi Cheung Investment.
However, the proposal was not 100 pct approved by Chi
Cheung's creditors so the company has to proceed with the
Scheme of Arrangement in order to implement the
restructuring plan.

Lau said the company has already invested 1.0 bln hkd in a
property re-development project with Land Development Corp
in Tai Yuen Street in Wanchai, and the construction work is
expected to commence in the third quarter of this year.
Chinese Estate closed up 0.01 at 0.89 hkd, and Chi Cheung
Investment was unchanged at 0.128 hkd. (AFX News  23-Jun-
2000)

HONTEX MANAGEMENT LTD: Facing winding up petition
-------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for July 26 on the petition of Ho
Wai Ho for the winding up of Hontex Management Limited. A
notice of legal appearance must be filed on or before July
25.

LUCKYEAR LTD: Facing winding up petition
----------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for July 5 on the petition of Cheng
Sum Ying for the winding up of Zhong Ya Enterprises
Limited. A notice of legal appearance must be filed on or
before July 4.

MERRYFIELD LTD: Facing winding up petition
------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for July 26 on the petition of Ting
Kin Wing for the winding up of Merryfield Limited. A notice
of legal appearance must be filed on or before July 25.

YIELDFULL INDUSTRIAL LTD: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for July 5 on the petition of Lai
Tak Leung, Kevin for the winding up of Yieldfull Industrial
Limited. A notice of legal appearance must be filed on or
before July 4.

ZHONG YA ENTERPRISES LTD: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for August 9 on the petition of
Universe Link Industries Limited for the winding up of
Zhong Ya Enterprises Limited. A notice of legal appearance
must be filed on or before August 8.


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

PT BAKRIE SUMATERA PLANTATIONS: Signs pact with creditors
---------------------------------------------------------
PT Bakrie Sumatera Plantations (BSP) said it hoped to sign
an agreement with its creditors to reschedule a debt of
US$73 million next month.

Ambono Januarianto, the newly appointed president of the
company, said that the agreement had covered 95 percent of
the points in the restructuring proposal, which calls for a
three year rollover.  If the proposal was approved, PT BSP,
a subsidiary of the Bakri Group, would repay its debt by
quarterly installments to a syndicate of 16 banks arranged
by Credit Suisse in Singapore.  

Ambono said BSP still had US$5 million in long term debt to
Japan Asia Investment Co. Ltd.  He added the company, which
produces crude palm oil and rubber, said it hoped to reap a
net profit of Rp48 billion (US$5.61 million) this year
despite the market slump.

He said BSP's oil palm trees are still young so that annual
production was expected for many years to come. He noted
the year 1999 was the worst for the company with sales
falling to Rp289.8 billion (US$38 million) from Rp411.7
billion in 1998 and operating profit shrinking to Rp37.4
billion from Rp120.8 billion. (Asia Pulse  22-Jun-2000)

PT BANK BALI: Parliament mulls bailout
--------------------------------------
PT Bank Bali, the Indonesian bank caught in the middle of a
financing scandal, will have plans for its Rp4,840bn
($567m) recapitalisation presented for approval to the
country's parliament on Monday night.

The Indonesian Bank Restructuring Agency (Ibra) has already
approved the recapitalisation, which will involve the
government buying Bank Bali's shares through a rights issue
on June 30. Bank Bali will offer 66.5m rights shares to
shareholders priced at Rp72.86 each. The government will
act as standby buyer.

The bank's recapitalisation plan had been due to take place
earlier this year but was delayed by a court ruling which
reversed the government's takeover. Rudy Ramli, Bank Bali's
former owner and president, threatened to sue Bank
Indonesia and Ibra over their forced takeover of his bank.

Earlier this week, Syahril Sabirin, the Indonesian state
bank governor, was detained for questioning over his
relationship to the Bank Bali scandal, in which Rp546bn of
bank recapitalisation funds was rediverted into a finance
company for political purposes. (Financial Times  23-Jun-
2000)

VOKSEL ELECTRIC: Seeking debt restructure
-----------------------------------------
Voksel Electric (VE) says it will propose to restructure a
debt of Rp363.5 billion (US$42 million) or 72 per cent of
its debt to a syndicate of foreign and Indonesian banks.

Corporate Secretary Linawati W said part of the debt would
be reschedule for eight years and the other part would be
converted into bonds.  Linawati said the restructuring if
approved would reduce its cash flow burden in interest
payment.  The creditors include IBJ Indonesia Bank, Deutsch
Bank AG, Bank Sakura Swadarma, DBS Buana, Natexis Banque,
Yasuda Trust, Fuji Bank, Daichi Kangyo Bank, Cargill-
Chelsea. (Asia Pulse  22-Jun-2000)


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

FR CORP.: Lowers net loss projection, ups pre-tax loss
------------------------------------------------------
Jewelry distributor FR Corp. released a number of revised
earnings projections for the fiscal year ending Sept. 30,
ones that narrow its net loss but raise its pretax loss.

The company's new projections show a 7.02 billion yen net
loss, lower than its previous 11.7 billion yen forecast.
The favorable difference results from a nearly 3.76 billion
yen one-time profit for settling a lawsuit by Shinwa Bank.
FR will pay the bank more than 1.68 billion yen, but escape
paying the 5.44 billion yen remainder of the claim. The
company nonetheless forecasts a pre-tax loss of 528 million
yen, up from the previously estimated 319 million yen.

GARBAN-INT'L PLC TOKYO: SESC calls for penalty
----------------------------------------------
Japan's securities watchdog urged the government to impose
penalties on the Tokyo subsidiary of Garban-International
PLC, a British money, derivatives and securities brokerage
firm.

The subsidiary, Garban International, violated Japanese
securities law by buying or selling bonds for itself when
it was supposed to be acting as a broker, the Securities
and Exchange Surveillance Commission said. Garban
international declined to comment. (The Asian Wall Street
Journal  22-Jun-2000)

NIPPON CREDIT BANK: Regional banks eye stake
--------------------------------------------
Some 90 regional banks -- including Bank of Yokohama, Chiba
Bank, Gunma Bank, Joyo Bank, Higashi-Nippon Bank and
Fukuoka City Bank - are prepared to put up an aggregate
total of 8 billion yen to purchase an 8 percent stake in
insolvent Nippon Credit Bank.

The regional banks' buy-in would allow the group to share
in the issuance of interest-bearing bank debentures. Also,
the institutions hope to improve their fund management
expertise and gather data on new financial services. They
also will seek to obtain income and capital gains on their
holdings of NCB shares.

NCBank is under temporary state control. It's due to be
taken over by a consortium comprised of Softbank Corp.,
Orix Corp. and Tokio Marine & Fire Insurance Co. The
consortium could assume operation as early as August.

NIPPON CREDIT BANK: Consortium lining up investors
--------------------------------------------------
Hokuetsu Bank and Taiko Bank have decided to invest 50
million yen each in Nippon Credit Bank, and North Pacific
Bank will acquire a stake as well.

By strengthening their ties to NCB, Hokuetsu and Taiko
banks hope to augment their knowledge and expertise in the
area of Internet banking.  Nippon Credit Bank is a
shareholder of both Hokuetsu Bank and Taiko Bank.

The amount of North Pacific Bank's investment is being
finalized. North Pacific Bank is responding to an
invitation to invest from the consortium, which has also
asked other banks to contribute from several tens of
millions to several hundreds of million yen in capital for
the reborn bank. Another one, Daishi Bank, is awaiting
investment documentation. before making a decision, as is
Hokkaido Bank.

NCB will come out of temporary government control and be
sold to a three-company consortium led by Softbank Corp.
and operated under new management, likely sometime in
August.

Comprised of Softbank Corp., Orix Corp. and Tokio Marine &
Fire Insurance Co., the consortium plans to boost NCB's
finances by increasing its capitalization by about 100
billion yen. It hopes to raise about 30 percent of that new
capital from overseas sources and regional financial
institutions.

SEIYO CORP.: Saison Group to shoulder 90B yen for Seiyo
-------------------------------------------------------
The Saison Group plans to shoulder a total of 90 billion
yen to dispose of the debts of troubled affiliate Seiyo
Corp., it was learned Thursday.

The group's negotiations with its main creditor bank, Dai-
Ichi Kangyo Bank, on the matter are in a final stage. The
group, led by Seibu Department Store Ltd., is likely to
reach an agreement with its eight major creditor banks as
early as in late June, sources familiar with the talks told
Jiji Press.

After obtaining consent of other creditor banks, the Saison
group will file for special liquidation of Seiyo, a real
estate developer, in July, they said.  To eke out funds for
Seiyo's debt disposal, Seibu Department Store will use a
securitization scheme to issue securities backed by some
of its stores, including a flagship in Tokyo.

Four other major Saison group companies, supermarket chain
Seiyu Ltd., consumer credit company Credit Saison Co.,
restaurant chain Seiyo Food Systems Inc. and shopping
center operator Parco Co., are expected to buy the
securities.  Seiyo has been burdened with bad loans that
resulted from failed resort development projects and hotel
businesses during Japan's booming "bubble" economy period
in the late 1980s.

At the end of February, it had a negative net worth of
about 460 million yen. (Jiji Press English News Service  
23-Jun-2000)


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

DAEWOO MOTOR: Report Daimler-Hyundai agree on joint bid
-------------------------------------------------------
DaimlerChrysler is to take a stake in South Korea's Hyundai
Motor Co. as part of a deal for a joint bid for the
insolvent Daewoo Motor, a television report said Friday.

YTN television quoted industry sources as saying that
DaimlerChrysler would acquire up to 10 percent of Hyundai
Motor, South Korea's largest automaker with a 70-percent
market share in the country.  The two automakers also
agreed to form a consortium to bid for Daewoo Motor, South
Korea's bankrupt second largest automaker, YTN said.

A Hyundai Motor spokesman declined to comment on the
report.  YTN said Hyundai Motor would announce early next
week details of the strategic alliance it has agreed with
the German-US giant.  The London Financial Times newspaper
said industry analysts estimate DaimlerChrysler could pay
up to 400 million dollars for a 10 percent Hyundai stake.

Under the proposed joint bid for Daewoo, DaimlerChrysler is
expected to take a 40-percent stake of Daewoo, Hyundai
would get 19.9 percent, with 30 percent for creditors and
the rest allocated to Daewoo management and employees, the
Financial Times said.  DaimlerChrysler's management board,
led by Jurgen Schrempp, endorsed the joint apporach with
Hyundai at a meeting this week, it said.

The South Korean government opposes Hyundai acquiring
Daewoo alone, as it would create a monopoly.  But Hyundai's
chances of taking over Daewoo appear to have risen as
surveys showed most South Koreans favor the sale to a
domestic-foreign consortium rather than to a foreign buyer.
US giants General Motors Corp. and Ford Motor Co. are also
bidding for Daewoo Motor.

All the candidates must file offers with Daewoo's creditors
by Monday. By June 30, the committee overseeing the bidding
will select between one and three bidders for detailed
negotiations.  A successful buyer is likely to be announced
in September.  Daewoo Motor is reeling under an estimated
8.6 trillion won (7.6 billion dollars) in debts and has
assets valued at around 12.9 trillion won (11.6 billion
dollars).

Daewoo's factories are capable of producing two million
vehicles a year but are currently running at only about 40
percent capacity. (Agence France Presse  23-Jun-2000)

DAEWOO MOTOR: Hyundai-Daimler alliance in stalemate?
----------------------------------------------------
The much-touted alliance deal between Hyundai Motor and
German-U.S. giant DaimlerChrysler, or DC, appears to run
into a last-stage stalemate, analysts said.

Hyundai and DC had planned to announce a broad partnership
agreement, including a joint bid for Daewoo Motor, in a
news conference in Seoul at 3 p.m. yesterday. But the two
automakers put off the announcement to Monday, the deadline
for presentation of the Daewoo bidding, raising speculation
that they still have hurdles to clear in their bilateral
alliance talks, said the analysts.

"Hyundai and DC may have run into last-stage trouble
surrounding their alliance deal," said a stock market
analyst, explaining that DC has the upper card, largely due
to its existing 34.6 percent stake in Japanese automaker
Mitsubishi.

However, Hyundai officials said bilateral negotiations have
been successfully concluded, awaiting the final procedural
approval by DC's supervisor board. "A top DC executive will
fly into Seoul Monday morning to attend a joint signing
ceremony with Hyundai," said Hyundai Motor spokesman Yoo
Jong-jin.

According to Hyundai's informed sources, the alliance deal
will call for Hyundai Motor to sell its 9.9-percent stake,
or 20.49 million shares, to DC for $400 million, or about
20,000 won per share. Also included in the deal will be the
joint development of a subcompact world car and fuel cells
with DC and Mitsubishi, and DC's acquisition of a 50-
percent stake in Hyundai's 60,000-unit-a-year commercial
vehicle plant in Chonju of North Cholla Province.

In the Daewoo Motor bidding, Hyundai will agree to hold
only 19.9 percent in the joint consortium with DC, in its
bid to bypass the government's monopoly regulations, the
sources said. DC will hold 40 percent in the consortium,
giving the remaining 40 percent to creditors and Daewoo
management, they said.

But Hyundai may be allowed to control 50 percent of
Daewoo's profitable passenger car operations in Poland,
they added.  By pairing with DC, Hyundai hopes to overcome
government opposition to Daewoo Motor being bought by
domestic rival Hyundai, which already controls over 70
percent of the Korean market along with its affiliate Kia
Motors.

The Fair Trade Commission has said it would oppose a solo
bid by Hyundai Motor. Yet should it form an alliance with a
foreign bidder, the FTC said the question remains open
depending on Hyundai's stake in the consortium.  In this
regard, the FTC's monopoly probe will play a crucial role
in deciding the success or failure of the Hyundai-DC
consortium, the analysts said.

They said that the escalating family conflict between
Hyundai Group founder Chung Ju-yung and Hyundai Motor-Kia
Motors Chairman Chung Mong-koo may also have negative
effects over Hyundai's Daewoo bid.  The FTC recently
demanded group founder Chung sell off his 6.9-percent stake
in Hyundai Motor as a precondition to the automaker's
separation from the group. Hyundai Motor was supposed to
secede from the group by the end of June.

The FTC charged that the elder Chung has to sell off his
stake in Hyundai Motor to satisfy legal requirements, which
set the maximum cross-unit equity ownership for separation
at 3 percent. But aides to the elder Chung say the group
founder has already washed his hands of group management
after selling off nearly all his shares in Hyundai
affiliates in late May. Mong-koo, who holds about 12-
percent in Hyundai Motor, has been at odds with the elder
Chung after refusing to step down from management.

Meanwhile, three other bidders for Daewoo Motor - Ford
Motor, General Motors and Fiat - are briskly moving to put
finishing touches on their bidding proposals before the
Monday deadline.

Among the three bidders, Ford is turning increasingly
aggressive. Ford officials have thus far hinted the company
will be willing to present more attractive conditions than
any other bidders to buy Daewoo. Ford recently dispatched
its chief spokesperson, Mira Kuma, to better publicize its
determination for the Daewoo Motor takeover.

"The Ford management is strongly determined to buy Daewoo
by whatever means, as the automaker is indispensable to
Ford's global strategy," said the Ford spokeswoman, adding
that Ford Vice Chairman Wayne Booker delayed his visit to
Korea to better oversee the drawing up of the Daewoo
proposals.

In contrast, however, GM is showing increasingly
questionable attitudes and failed to reveal any new cards
towards Daewoo bidding. Entering this week, GM remained
silent on its bidding proposals, refusing to speak on its
determination and willingness in the bidding war.

The U.S. automaker also refused to comment on possible
formation of a joint consortium with Fiat in the Daewoo
bidding. After bids are in, one or two bidders will be
selected for priority negotiations by June 30. For the
finale, two bidders instead of one are expected for
selection by the matchmaker to elicit a better offer out of
the competitors. The successful bidder will then be singled
out by the end of September.  (The Korea Herald  24-Jun-
2000)

HANVIT BANK: To sell nonperforming loans
----------------------------------------
Hanvit Bank will sell off 210.9 billion won in non-
performing loans to a bad-loan management company to be set
up jointly with Lone Star, a U.S. investment fund, a Hanvit
official said yesterday.

Hanvit, the nation's largest commercial bank, will own a 50
percent stake in the joint-venture special-purpose company
(SPC) as part of its efforts to manage problem assets more
effectively, the official said.  In addition, Hanvit will
write off 701.6 billion won in nonperforming loans within
this month in order to reduce bad loans and thus to be
reborn as a clean bank, he added.

In the second half of this year, Hanvit will also issue
asset-backed securities worth 730.2 billion won and reduce
bad loans of 2 trillion won through a corporate
restructuring vehicle, the official said. (The Korea Herald  
23-Jun-2000)

WOOBANG HOUSING & CONSTRUC.: Fails to pay 1.9B won debt
-------------------------------------------------------
Woobang Housing & Construction Co Ltd is seeking emergency
loans from H&CB after failing to repay 1.9 bln won in
promissory notes that matured yesterday, according to
Seoulbank, a major creditor of the company.

Woobang, which is participating in bank-led debt
rescheduling plans, will be declared insolvent if it fails
to repay the debt by today.  Woobang is likely, however, to
obtain emergency loans from H&CB and so avoid going under,
a Seoulbank official said.  

The Korea Stock Exchange suspended trading in Woobang
shares this morning.  Trading in the stock will resume
tomorrow if the construction company files the appropriate
public notices today stating that it has repaid the debt,
the KSE said. (AFX News  22-Jun-2000)


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

KUALA LUMPUR INDUS.HLDGS.: Developer Lim poised to takeover
-----------------------------------------------------------
Property developer Datuk Patrick Lim Soo Kit is expected to
emerge as the controlling shareholder in the financially
troubled Kuala Lumpur Industries Holdings Bhd's (KLIH) upon
the completion of the company's corporate restructuring
exercise.

Under KLIH's restructuring exercise, Taman Equine (M) Sdn
Bhd, which is believed to be Lim's flagship company, is to
be injected into the listed company for a value believed to
be over RM300 million.  The transaction is a share swap
deal. KLIH has a paid-up capital of RM303.76 million and a
big capital reduction under the company's debt
restructuring exercise is on the cards.

Negotiations are being held between Lim, the creditors and
Pengurusan Danaharta Nasional Bhd on the terms and pricing
of the asset that is to be injected.  Taman Equine
currently has two property projects in Selangor: the 220ha
Taman Equine Development, which is a mixed commercial and
residential development project in Serdang, and PKPS
Development, which is developing a 96ha site nearby.

On June 8, KLIH entered into an agreement with Lim for the
proposed acquisition of Taman Equine. Under the agreement,
Lim will act as agent for all the shareholders in Taman
Equine for the sale of 1.5 million shares in the property
company to KLIH.

Sources said the injection of Taman Equine into KLIH would
pave the way for Lim to take over the listed property
company, as he would emerge as the major shareholder.
Besides property, KLIH also has an insurance unit, People's
Insurance Company (M) Bhd.  Apart from the projects in
other parts of Selangor and Johor, KLIH has also been given
the task to build the Selangor wholesaling market in
Serdang.

On his property projects, parties closed to Lim said the
34-year-old property developer have come up with innovative
schemes such as an Internet centre for every block of low
cost houses at his Putra Permai project and the
introduction of the two-generation house -- a two-and-a-
half storey unit with six rooms.

According to parties close to the deal, Lim is expected to
emerge as the controlling party in KLIH after the company's
corporate restructuring exercise anticipated to be
completed by the end of the year.

Hit by a whopping debt, KLIH has since sought court
protection under Section 176 while its subsidiary Malaysia
Electric Corp Bhd has come under Danaharta. Its stock has
been suspended from trading on the Kuala Lumpur Stock
Exchange for the past two years.

The debt restructuring exercise would involve a huge
reduction in capital to the tune of 10 shares into one
while creditors are also expected to get a haircut. (The
Edge  23-Jun-2000)

MALAYSIAN GENERAL INVEST.CORP.: To sell stockbroker arm
-------------------------------------------------------
Malaysian General Investment Corporation Bhd expects to
reduce its losses for the current year with the completion
of the sale of its stockbroker arm, MGI Securities Sdn Bhd,
to Avenue Assets Bhd (formerly known as Phileoland Bhd) by
year end.

"We do not expect a profit as the company has to service a
high interest rate, but we're confident of a cut in
losses," executive chairman and chief executive officer
Datuk Mohd Ghazali Mohd Khalid said.

MGIC's pre-tax loss increased by 517.9 per cent to RM48.49
million for the year ended Dec 31, 1999 from a pre-tax loss
of RM7.85 million in the previous year.  Its stockbroking
business posted a pre-tax loss of RM22.53 million from a
pre-tax profit of RM3.92 million previously.

"The group's losses were due to the stockbroking business.
The disposal of MGI Securities will solve the problem," he
said.

Mohd Ghazali said MGIC has received approvals from the
Foreign Investment Committee, Bank Negara Malaysia and
Securities Commission for the proposed disposal of MGI
Securities.  Last Nov 30, the proposed MGI Securities
Scheme of Arrangement was approved by its secured
creditors. The scheme involves capital reduction and
consolidation, debt restructuring and the introduction
of a new investor into MGI Securities.

He was speaking to reporters after the company's annual
general meeting in Kuala Lumpur yesterday.  "There was a
delay because of the recent announcement by the SC on
the consolidation of the stockbroking industry ... but now
things are back to normal."

Mohd Ghazali also expects the trading suspension imposed by
the Kuala Lumpur Stock Exchange on MGI Securities to be
lifted by early next month.  "We've met most of the
criteria set by the KLSE and we hope to resume normal
trading," he said.

Mohd Ghazali said the company is identifying new core
businesses and will make announcement on that soon.
However, he pointed out that MGIC will retain its property
business as some of its properties are making money.

"Our apartments in Fraser's Hill are generating good money
with an occupancy rate of about 85 per cent," he added.
(The New Straits Times  22-Jun-2000)

SIN HENG CHAN(MALAYA): Proposes cash call to cut borrowings
-----------------------------------------------------------
Sin Heng Chan (Malaya) Bhd (SHC) has proposed a fund-
raising exercise involving a two-for-one rights issue,
which will raise RM40.3 million to reduce its bank
borrowings and for working capital.

The exercise involves a renounceable rights issue of up to
40,302,750 shares of RM1 each in SHC. The company also
proposes to raise its authorised share capital from RM25
million to RM100 million.

In an announcement to the Kuala Lumpur Stock Exchange, SHC
said its outstanding bank borrowing stood at RM37.7 million
as of April 30. It added that the group's operating income
were insufficient to service the interest costs or to repay
the borrowings.

Of the RM40.3 million raised, SHC said RM31.9 million would
be used to reduce bank borrowings, RM4.57 million for
working capital and the remainder for defraying expenses
incidental to the proposed rights issue.

The group manufactures formulated animal feeds and is
involved in the poultry industry including contract poultry
farming and broiler breeding; as well as in investment
holding; property development and general trading.
SHC is currently under the management of the special
administrators appointed by Pengurusan Danaharta Nasional
Bhd.

Its current issued and paid-up share capital is nearly 19
million shares. With the proposed 38 million rights issue,
the enlarged issued and paid-up share capital will be
increased to almost 57 million.  If none of the 1.157
million options granted under the employees' share option
scheme are exercised, the group will be able to raise
RM37.99 million based on the issue price of RM1 per rights
share.  (The Edge  23-Jun-2000)

UNITED ENGINEERING MALAY.: Affiliate to finish rehab soon
---------------------------------------------------------
United Engineers Malaysia Bhd (UEM) said the debt
restructuring of wholly-owned unit Expressway Lingkaran
Tengah Sdn Bhd (Elite), involving the conversion of some
RM1.04 billion (S$475 million) in loan facilities into
serial bonds, is expected to be completed this month.

UEM chairman Radin Soenarno Al-haj said the restructuring
was in the final stages of implementation.  The proposed
serial bonds will be issued in eight tranches to mature
between 2004-2011, he said in the company's 1999 annual
report. Elite is the concessionaire of the North-South
Expressway Central Link.

On the proposed backdoor listing of Elite, he said UEM was
still in the process of injecting Elite and another unit
Kualiti Alam Sdn Bhd into a company called Central
Malaysian Assets Bhd, which in turn, will assume the
listing status of Kedah Cement Holdings Bhd. In 1999, Elite
posted a pre-tax profit of RM42.6 million on a revenue of
RM82.3 million.  (AFX-Asia, Business Times  23-Jun-2000)


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

PHILIPPINE NAT.BANK: Lewis-RCBC team-up seen
--------------------------------------------
Filipina-American billionaire Loida Nicolas Lewis has
offered a team-up with the Rizal Commercial Banking Corp.
(RCBC) in a bid to acquire the government's remaining 30-
percent stake in Philippine National Bank (PNB).

This was disclosed by Finance Secretary Jose T. Pardo
yesterday who said local authorities and the International
Monetary Fund (IMF) would start fresh talks on new terms in
the full privatization of PNB.

It could be recalled that the government failed to meet the
June deadline to completely dispose of its PNB shares after
only one investorRCBC of the Yuchengco familyqualified for
the bidding.  The government fused its 30-percent equity
with the 46-percent stake of taipan Lucio C. Tan in a bid
to sell the combined 76 percent as a block.

Lewis, owner of US-based food manufacturer TLC Beatrice
LLC, was barred from participating in the public auction
after her group did not get a local banking partner, which
was a pre-requisite.  Lewis teamed up with the Templeton
Asset Management of Hong Kong in buying 76 percent of PNB.
Templeton owns 12.9 percent of PNB.

"Ms. Lewis is negotiating with RCBC," said Pardo,
reiterating optimism that they would be able to rebid the
30 percent on or before Tan implements his capital call
through a stock rights offering next month of in August.
(The Manila Times  23-Jun-2000)

PHILIPPINE NAT.BANK: Share sale aims to rescue bank
---------------------------------------------------
Philippine National Bank, the nation's fourth-largest
lender by assets, said it will raise as much as 20 billion
pesos (HK$3.6 billion) by selling new shares, in a bid to
strengthen its finances.

The bank said its board approved a plan to raise the
lender's authorised share capital from 25 billion pesos to
50 billion pesos, paving the way for the sale of the shares
and warrants to existing shareholders.

"The bank has no choice," said Ed Bancod, bank analyst at
BNP Paribas in Manila. "It badly needs to recapitalise to
be at par with the industry."

The new capital should help the bank return to profit. PNB
has one of the highest levels of bad loans in the
Philippine banking industry, with about 36 per cent of all
credits being non-performing. The funds will help PNB
improve its capital adequacy ratio, which has fallen below
central bank requirements after successive losses in the
last two years.

Still, it may be hard for the bank to raise the funds
because of its shaky finances - PNB has lost a total of
17.1 billion pesos in the last two years, wiping out the
profits it made from 1992 to 1997. It lost 933 million
pesos in the first quarter of 2000 as interest income fell
and as it had to set aside higher provisions for bad loans.

"I have my doubts," Mr Bancod said. "There are more
companies out there that offer better value and returns
with relative safety."

PNB's planned rights sale comes after a failed attempt by
the government, which owns 30 per cent of the bank, and
tycoon Lucio Tan, who controls about 46 per cent, to
jointly auction their PNB stake along with the lender's
retirement fund.  The rights offering, and an accompanying
reduction in the par value of the bank's shares to 60 pesos
per share, may endanger plans by the government to go it
alone in the sale of its PNB stake.

"We are in a real problem and that justifies the basis of
not pursuing the privatisation," Finance Secretary Jose
Pardo said. "We will ask our legal advisers about the move
done by PNB - we want to know why they brought down the par
value of PNB."

The government had wanted to offload its stake within the
next two months, part of a pledge to the International
Monetary Fund and the World Bank to get out of the banking
industry. The government's stake sale is a condition for
the release of a US$200 million (HK$1.5 billion) banking
industry reform loan.  Still, the IMF and World Bank may
show understanding of the difficulties the government's
facing in offloading its stock.

"The focus is to rehabilitate the bank," Mr Pardo said.
"For all intents and purposes the government has done
everything to privatise PNB, and they have recognised the
dilemma we are in."

The Philippines will formally ask the IMF and the World
Bank to release the bank reform loan even before the sale
of PNB, said central bank governor Rafael Buenaventura.
Mr Buenaventura said representatives of both the World Bank
and the IMF indicated in recent meetings that the terms of
the loan may be changed, if they consent to the government
holding onto its stock for a while longer - or at least
until the share price has risen.

"There is no longer a question of ownership since we have
been already reduced to 30 per cent," Mr Buenaventura said.
"The government is no longer the controlling majority."

The bank said it will sell five new common shares for every
six existing common shares.  PNB Capital and Investment,
the bank's investment unit, was tapped to underwrite the
offer. The board's decision is going to be submitted to
shareholders on July 21.  PNB shares rose 6 per cent to
61.50 pesos. The stock has been down 35 per cent this year
compared with a 28 per cent drop on the market's main
index. (Hong Kong Imail  24-Jun-2000)

PILIPINO TEL.CORP.: Finalizing debt talks  
-----------------------------------------
After getting the nod of creditor banks for the
restructuring of its 13-billion-Philippine pesos (PhP)
(US$302.98 million at PhP42.907:US$1) debt, cash-strapped
cellular firm Pilipino Telephone Corp. (Piltel) will now
sit down with Marubeni Corp. to negotiate for the payment
of debts owed to the Japanese supplier.

In an interview with reporters following Landco Pacific
Corp.'s press conference yesterday, Philippine Long
Distance Telephone Co. (PLDT) president and chief executive
officer Manuel V. Pangilinan said the management will meet
with Marubeni before the end of the month to discuss the
payment of Piltel's $279-million debt owed to the company.

Mr. Pangilinan added that the debt-laden cellular company
will also try to negotiate with bondholders and propose the
same terms of payment approved by the banks. Piltel owes
some $193 million in debts to international bondholders.

"We're trying to arrange a meeting with Marubeni as soon as
we can now that the banks have signed. And as soon as
possible also we should put an offer to the bondholders a
proposal along lines that are very similar to the banks
restructuring," the PLDT official said.

Mr. Pangilinan said Piltel plans to finalize its debt
restructuring program with creditors, suppliers and
bondholders before the end of the year and resume normal
operations by next year. Piltel's total obligations
currently amount to PhP34.9 billion ($813.38 million).

Last Wednesday, Piltel and parent firm PLDT signed a Master
Restructuring Agreement (MRA) with its creditor banks.
Under the MRA, 50% of the company's debt will be converted
into convertible preferred Piltel shares. The said shares -
- with interest of 1.1% annually -- will be converted into
PLDT convertible preferred shares and later into PLDT
common stock.

The agreement also calls for a 10-year repayment term of
25% of the debts while the remaining 25% will have a 15-
year repayment term.  PLDT has committed to infuse $150
million to assist in the rehabilitation and debt payment
while foreign partner NTT Communications has agreed to
provide $150 million.

"We're talking to them on a number of alternatives and the
base alternative is very similar to the banks -- the
conversion of half of the debts into PLDT equity, the other
half longer term. Hopefully when we meet them soon we'll
get a better sense of which of the various alternatives are
feasible," the PLDT official said.

Mr. Pangilinan, however, noted that the debt restructuring
program is only the first step before Piltel once again
achieves profitability, saying that the cellular firm also
has to work on its subscriber base and total expense base
to improve revenues.

As of June, Piltel's subscriber base hit 625,000 driven
primarily by the marketing of its borrowed digital
technology. The newly launched Talk 'N Text brand
contributed some 145,000 to the cellular firm's total
subscriber base in only two and a half months' time.

"We would anticipate continuous subscriber growth for
Piltel. So as it increases its subscribers, really the
revenues starting 2001 should be much better than it was in
the previous years. So we are addressing the revenue
issue... the interest expense line could go down once the
debts are restructured. So our objective is we should
finish with the other creditors before yearend so that as
we open the year 2001, Piltel is relieved of this burden so
that it can concentrate on making money," he said.
(Business World  23-Jun-2000)

REYNOLDS PHIL.: Encounters obstacles in servicing debts
-------------------------------------------------------
Aluminum sheet manufacturer Reynolds Philippines Corp.
(RPC) is reportedly encountering difficulties in servicing
its more than one-billion-Philippine peso (PhP) (US$23.3
million at PhP42.907:US$1) debt to several creditor banks
and needs a white knight that would be willing to infuse
much-needed equity, BusinessWorld sources said.

Sources said the publicly listed company's loans have gone
past due. While some of the loans are secured by plant and
equipment, the sources said the collateral is not enough to
cover its entire obligations.

"Reynolds is thinking of several schemes to make it become
viable again," one of the sources said. Its biggest
creditor is Land Bank of the Philippines, with more than
PhP900 million ($20.97 million) in exposure.

Another creditor is All AsiaCapital and Trust Corp., with
PhP206.376 million ($4.81 million) in total obligations.
RPC said its debt to All AsiaCapital is the sum of matured
short-term commercial papers which were converted to
promissory notes with a principal balance of PhP164.924
million ($3.84 million), plus short-term promissory notes
equivalent to a principal balance of PhP41.452 million
($966,089).

In its disclosure, RPC said its obligations to All
AsiaCapital is the subject of "current restructuring
discussions." RPC's problems began after the peso was
devalued in mid-1997.  Its operations were affected after
cost of raw materials shot up. RPC primarily imports raw
materials from Japanese supplier Marubeni Corp. It is also
facing stiff competition from other companies which have
lower overhead costs.

At present, RPC is operating at less than 50% of its full
capacity, the source added. "The company does not have the
money to purchase raw materials," the source said. "The
plant should be operating at 70% to 80% capacity to bring
down costs," the source added.

RPC's stockholders include Profinda Holdings Corp., with
41%, Marubeni Corp., All AsiaCapital, Social Security
System, AFP Retirement and Separation Benefits System, Piso
Bank, All AsiaCapital Growth Ventures Phils. Inc., All Asia
Development Corp. and Merchant Investment. The company was
established in 1954 by US-based Reynolds International Inc.

Its primary purpose was to manufacture and distribute
aluminum sheets, foil and extruded sections used in the
packaging, container, construction, appliance manufacturing
and vehicle manufacturing industries. RPC officials were
not immeidately available for comment. (Business World  21-
Jun-2000)

WESTMONT INVEST.CORP.: Firm eyes control of parent
--------------------------------------------------
Yuchengco-owned First Resources Management and Securities
Corp. has raised its bid for 80% of Unioil Resources and
Holding Co., Inc. -- parent company of troubled Westmont
Investment Corp. (Wincorp).

The firm upped its offer to 170 million Philippine pesos
(PhP) (US$3.96 million at PhP42.907:US$1) from its original
amount of PhP150 million ($3.50 million). Speaking on the
condition of anonymity, sources privy to the negotiations
confirmed First Resources' plan to acquire Unioil in behalf
of three to four third-party buyers.

Should the deal proceed as planned, Unioil will have the
responsibility of determining what to do with its assets,
particularly that of Wincorp. First Resources made clear
its intention of buying Unioil only as a shell company.
Unioil subsidiaries include BU Properties Corp. and Phoenix
Energy Corp.

Meanwhile, the source said the case filed by Pearlbank
Securities, Inc. against Wincorp, which remains pending at
the Securities and Exchange Commission (SEC), continues to
stand as an obstacle to the realization of the said deal.
Brokerage firm Pearlbank earlier alleged that it was
unwittingly named a borrower when several Wincorp investors
demanded payment after the investment house folded up early
this year partly because several corporate groups allegedly
borrowed PhP5.5 billion ($128.18 million) and never paid
interest.

"(We) have no outstanding loan obligations or borrowing
with Wincorp," Pearlbank said.

However, last March 1, Huey Commercial -- a Wincorp
investor -- said its confirmation advice showed Pearlbank
was the borrower of PhP4.9 million ($114,200) out of a
total investment of PhP110 million ($2.56 million).
Pearlbank said the acts of Wincorp "in representing to
different investors that (Pearlbank) borrowed against their
investments...violates (Pearlbank's) right and reveals a
device or scheme employed by Wincorp...amounting to fraud
and misrepresentation detrimental to the interest of the
public."

For its part, Wincorp debunked all allegations of fraud and
misrepresentation and has a pending 70-million-peso ($1.63
million) counter suit against the brokerage firm and its
chairman Manuel Tan. Wincorp had asked the SEC to compel
Pearlbank to pay over PhP70 million in exemplary and actual
damages, citing documentary evidence showing that Pearlbank
and Mr. Tan did borrow over PhP524 million ($12.21 million)
from several lenders through Wincorp. It started facing
liquidity problems after its funders preterminated their
investments. (Business World  23-Jun-2000)


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

KRUNG THAI BANK: Approves writedown
-----------------------------------
Krung Thai Bank directors yesterday approved a capital
writedown and return of 108 billion baht to the Financial
Institutions Development Fund.

The writedown of 10.8 billion preferred shares is part of a
plan approved earlier this year by the cabinet, calling for
537 billion baht in bad loans at Krung Thai to be
transferred to a new asset-management company.  Krung Thai
will have its accumulated losses sharply reduced and its
capital position strengthened as bad loans are sold to the
management firm, which will be fully owned by the Fund.

Salinee Wangtal, director of the central bank's Financial
Institutions Rehabilitation Group, said six out of the nine
directors of Sukhumvit AMC had been appointed, primarily
senior officials from state agencies. Another three would
come from the private sector.  Mrs Salinee said the AMC
board would be responsible for appointing a financial
adviser, a process expected to be completed by next month.

The adviser would be responsible for helping split the
assets into individual lots, as well as drafting terms for
asset managers.  She said the asset transfer from Krung
Thai was expected to be completed by the fourth quarter,
with managers chosen by mid-2001.

Asset managers must be Thai-registered companies. Krung
Thai Bank was also considering whether to submit a bid to
manage assets.  KTB shares on the SET closed unchanged
yesterday at 13.25 baht. (Bangkok Post  23-Jun-2000)

PRECIOUS SHIPPING: Reports rehab progress to SET
------------------------------------------------
Precious Shipping Public Company Limited (the "Company"),
through managing directors Khalid Moinuddin Hashim and
Khushroo Kali Wadia has reported to the Stock Exchange of
Thailand that on June 21, 2000, the Company and certain
subsidiaries signed a  US$ 25,000,000 Secured Loan Facility
agreement with Fleet National Bank for the purpose of
partially funding the restructuring of the Company's
publicly issued debt according to debt restructuring plan.
The fund will be drawdown on the effective date of the debt
restructuring. (Stock Exchange of Thailand  23-Jun-2000)

UBOLSAHATHAM KONSONG: Bankruptcy court accepts for rehab
--------------------------------------------------------
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

Troubled Company Reporter -- Asia Pacific is a daily
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Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

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