/raid1/www/Hosts/bankrupt/TCRAP_Public/000705.MBX      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

             Wednesday, July 5, 2000, Vol. 3, No. 129

                                 Headlines


* A U S T R A L I A *

ANUTECH PTY LTD: Posts $4.48M operating loss
EDGE GROUP:  Wang assets to be seized
EISA: Wang assets to be seized
GREYHOUND PIONEER: Officials concerned over receiver
RAPID DETOX CENTRE: Facing receivership, bankruptcies
VINCORP WINERIES: Small fish winery group swallowed up


* C H I N A  &  H O N G  K O N G *

CHINA YINHONG INT'L TRADING CO.: Facing winding up petition
CHUN TAI INDUSTRIES LTD: Facing winding up petition
GLOBAL WISE ENGINEERING LTD: Facing winding up petition
HOLTER INT'L LTD: Facing winding up petition
ICON INT'L LTD: Facing winding up petition


* I N D O N E S I A *

PT RIAU ANDALAN KERTAS: Restructures US debts
PT RIAU ANDALAN PULP & PAPER: Restructures US debts


* J A P A N *

AKAI ELECTRIC CO.: TSE threatens delisting
SOGO CO.: Japan chips in $1.5bn for rescue
SOGO CO.: S&P critical of bail out


* K O R E A *

DAEGU BANK: Facing huge loss
DAEWOO GROUP: Foreign creditors seek debt sale
DAEWOO MOTOR: Ford due diligence to begin July 10
HANVIT BANK: Facing huge loss
HYUNDAI GROUP: To proceed with spinoff despite KFTC
KOREA DEVELOPMENT BANK: Facing huge loss
KOREA EXCHANGE BANK: Facing huge loss
KOOKMIN BANK: Facing huge loss
KORAM BANK: Facing huge loss
KWANGJU BANK: Facing huge loss
NATIONAL FED.OF FISHERIES: Facing huge loss
PEACE BANK: Facing huge loss
PUSAN BANK: Facing huge loss
SEOUL BANK: Facing huge loss


* M A L A Y S I A *

BANK NEGARA MALAYSIA: Borrowing from interbank
CARPETS INT'L MALAYSIA: Changing focus with acquisitions
INNOVEST BHD: Refocusing operations on local biz
MALAYSIAN RESOURCES CORP.: To sell property to repay debt
MBf HOLDINGS BHD: Proposing debt restructuring
TRANS CAPITAL HLDGS: Finalizes debt rehab agreement
TRANS CAPITAL SDN: Finalizes debt rehab agreement


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

PHILIPPINE NAT.BANK: PNBRFI to meet on stake pledged to Tan
URBAN BANK: All directors face criminal raps
URBAN BANK:  BanCom likely to take over
WESTMONT INVESTMENT CORP.: SEC asked to halt asset sale


* S I N G A P O R E *

DIVERSIFIED INTRACO LTD: Gives up vehicle repair ops
NATSTEEL ELECTRONICS: To defer restucturing
OVERSEAS UNION BANK: May bow out of broking scene
THAKRAL CORPORATION: Suffers massive $175m loss


* T H A I L A N D *

KRISDAMAHANAKORN PLC: Debt rehab progress reported to SET
KRUNG THAI BANK: Steams ahead with loan restructuring
PRECIOUS SHIPPING PLC: Euro bondholders' meeting delayed
SIAM GENERAL FACTORING PLC: Debt rehab pact reported to SET
SUBMICRON TECHNOLOGY PLC: Charn seeks last-minute solution
THAI DURABLE TEXTILE: Debt-rehab progress reported to SET


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

ANUTECH PTY LTD: Posts $4.48M operating loss
--------------------------------------------
Anutech Pty Ltd, the Australian National University, had an
operating losses amounted to just over $4.48 million, the
majority of which came from its subsidiaries and whose
accounts remain unpublished.

Anutech assigned almost half the loss to 'abnormal items,'
despite operating revenues of just over $43 million. These
losses, totaling $2.211 million, comprise a string of
write-offs, the largest of which is $756,000 described as a
"write-off of Deferred Research and Development costs to
their recoverable amount."  As well, $699,000 is ascribed
to a "construction contract loss."

No period over which those losses were incurred is
specified. However, the third-largest item, $475,000, is
ascribed to "costs associated with write-offs identified to
Work in Progress and Deferred R&D costs for the period 1994
to 1997." Another $281,000 was "required to correct 1998
Stock and Debtor balances."

The company's problems, as indicated by the list of write-
offs, goes back well beyond Dr Bell, ANU's finance
committee. Elsewhere than in last year's profit-and-loss
accounts, the accounts give some clues as to where it was
distracted from its core business of marketing, research,
consultancy and commercialisation - and not necessarily in
that order, as Terrell put it.

In December 1990, when the bluff former army engineer John
Morphett was in the driving seat, Anutech "entered into
agreements with two syndicated R&D partnerships worth a
total of $50 million," they record.

These entailed providing funds for research over 1991-93,
plus $34.6 million for technology licence fees. Morphett
was quite upset when, a few years later, Treasury decided
that syndications of this sort were a tax rort and closed
them down. He spent a lot of time trying to persuade the
Productivity Commission inquiry into research that they
should be restored, inevitably to no avail.

EDGE GROUP:  Wang assets to be seized
EISA: Wang assets to be seized
-------------------------------------
Eisa assets were ordered frozen by the Federal Court in
favor of Microsoft Corporation after the former failed to
pay $17 million in licensing fees owed by Wang's Edge group
of companies.  The order prevents the Wang Edge group from
disposing 59 percent ($A11 million) of Internet provider
Eisa. (The Australian Financial Review 01-July-2000)

GREYHOUND PIONEER: Officials concerned over receiver
----------------------------------------------------
Greyhound Pioneer officials showed concern on the
appointment of Ferrier Hodgson and Company as receiver,
leaving the matter to the Australian Securities and
Investments Commission -- but this did not hamper
operations of the coachline.

Alan Eden of Retirewise's law firm, Bowdens Lawyers, said
the receivers had been appointed because Pioneer continued
to default on loans. He also says the coachline had been
pursuing a new deal with Nowra Coaches, even though
Retirewise had blocked a Pioneer proposal to sell its coach
business to Nowra in an attempt to pay back debt.

Former Greyhound Pioneer chairman, Stephen Jones says the
concerns, which he would not elaborate on, had led the
coachline to appoint its own solvency experts from Ernst
and Young Australia at the same time the company's major
creditor and shareholder, Retirewise Capital,

Retirewise and associated partners own 48 per cent of
Greyhound Pioneer and are owed $A9.2m. Alan Eden of
Retirewise's law firm, Bowdens Lawyers, said the receivers
had been appointed because Pioneer continued to default on
loans. (The Courier Mail 03-July-2000)

RAPID DETOX CENTRE: Facing receivership, bankruptcies
-----------------------------------------------------
Rapid Detox Centre is in the process of receivership with
two of its major shareholders suing the clinic's owner-
builder, Jack Roberts.  Three other Sydney clinics went
bankrupt leaving Addiction Treatments Australasia to cope
with the demand for rapid detoxification with naltrexone.
(Sydney Morning Herald 01- July-2000)

VINCORP WINERIES: Small fish winery group swallowed up
------------------------------------------------------
Vincorp Wineries will be sold to Private Hunter Valley
premium wine group Hope Estate at $6.15 million, ending
Vincorp's 30-month stint as Australia's smallest listed
wine company.

Privately owned by Mr Michael Hope, Earlier Hope Estate
bought Vincorp's winery at Kyneton in country Victoria and
the Virgin Hills vineyard and brand for $6 million in cash.
About six weeks earlier, Hope Estate bought Vincorp's
Donny-brook vineyard in Western Australia in a separate
deal for $1.045 million.

Hope Estate was able to raise the money thru its 90
hectares of vineyards and a 2,000-ton winery in the Hunter
Valley. The company produces about 30,000 cases of wine
each year. (Australian Financial Review 03-July-2000)


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

CHINA YINHONG INT'L TRADING CO.: Facing winding up petition
-----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for August 16 on the petition of
Kincheng Banking Corporation for the winding up of China
Yinhong International Trading Company Limited. A notice of
legal appearance must be filed on or before August 15.

CHUN TAI INDUSTRIES LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for August 2 on the petition of The
China State Bank Limited for the winding up of Chun Tai
Industries Limited. A notice of legal appearance must be
filed on or before August 1.

GLOBAL WISE ENGINEERING 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
Chee Yuen Industrial Company Limited for the winding up of
Global Wise Engineering Limited. A notice of legal
appearance must be filed on or before August 8.

HOLTER INT'L LTD: Facing winding up petition
--------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for July 12 on the petition of The
China State Bank, Limited for the winding up of Holter
International Limited. A notice of legal appearance must be
filed on or before July 11.

ICON INT'L 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
Sam-Tec Limited for the winding up of Icon International
Limited. A notice of legal appearance must be filed on or
before August 8.


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

PT RIAU ANDALAN KERTAS: Restructures US debts
PT RIAU ANDALAN PULP & PAPER: Restructures US debts
---------------------------------------------------
PT Riau Andalan Pulp & Paper (Riaupulp) and PT Riau Andalan
Kertas had reportedly restructured US$ 1.2 billion of their
total US$ 1.3 billion debts with major local banks and the
Indonesia Bank Restructuring Agency (IBRA).

According to The Jakarta Post, the subsidiaries of
Singapore-based Asia Pacific Resources International
Holdings Ltd. (APRIL) in Indonesia signed the debt
restructuring agreements on last Thursday.  The
restructuring of the remaining debts, which involved
foreign banks, was expected to be finalized soon, the paper
said.

APRIL holds a 98.5 percent stake in Riaupulp and wholly
owns APRIL Fine Paper, which control 99.8 percent of
Riaupaper's shares.  (Asia Pulse  04-July-2000)


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

AKAI ELECTRIC CO.: TSE threatens delisting
------------------------------------------
The Tokyo Stock Exchange urged Akai Electric Co. to submit
earnings listings or else face the possiblity of delisting
for ignoring the mandatory three-times-a-year submission of
reports as stated in TSE rules.

The TSE also said Akai Electric's failure to submit its
financial statements to the Finance Ministry by the legal
deadline of June 30 is a serious matter.  Akai, a
struggling Japanese maker of audio and video equipment
listed on the TSE's first section, claims it was unable to
submit the statements because of the lack of an auditor for
its statements since late last year.

The company said earlier in the day that it has now found
an auditor and plans to submit its financial statements by
the end of July. The TSE will keep a close watch on further
developments and await the outcome of the auditing before
deciding whether to move the company to the exchange's
monitoring post for possible delisting, the TSE official
said.

Akai Managing Director Koichi Enomoto said Akai is
undergoing rehabilitation under a Hong Kong firm, and had a
consolidated debt excess of over 44 billion yen at the end
of March.  He said it will likely take nine to 12 more
months to conclude the ongoing debt-relief negotiations
with creditor financial institutions.( Jiji Press English
News Service 30-June-2000)

SOGO CO.: Japan chips in $1.5bn for rescue
------------------------------------------
Sogo Co. will receive some 97 billion (US$1.5 billion) of
taxpayer money to help rescue  the company from a major
corporate bankruptcy.

This will pave the way for Sogo's other bankers to forgive
more than 630 billion in loans. The banks had wavered for
weeks on whether to grant Sogo's request for the debt
forgiveness, one of the largest loan write-offs in Japanese
bank history.

The Financial Reconstruction Commission, the agency charged
with overseeing reform in the banking system  said this
will ease pressure on the banks to which Sogo owes a total
of 1,680 billion but  there will be questions about where
the Government will draw the line on the use of public
money. The precedent set on last week could mean that
thousands of companies will press for debt forgiveness.

The government was pushed into this  position by thru
Shinsei Bank, the former Long-Term Credit Bank, which the
Government sold last year to a private group led by an
American investment firm, Ripplewood Holdings.

Sogo's loans fell into that category, and on Wednesday
Shinsei asked the Deposit Insurance Corp to buy back 97
billion of the 200 billion Sogo owes it.  Shinsei had
already set aside 103 billion in reserves against
potential default.  Under the terms, the Government must
buy back any loans made by Long-Term Credit Bank whose book
value falls by 20 per cent or more for the next three
years. (Sydney Morning Herald 03-July-2000)

SOGO CO.: S&P critical of bail out
----------------------------------
Credit rating agency Standard and Poor's (S &P) has
expressed concern that the bailout of Sogo Corp. by the
Japanese government will create a false assumption that
public agencies will shoulder the credit risk of all
private companies.

This is an offshoot of Financial Reconstruction
Commission's decision to write off Y97bn ($910m) of Y198bn
Sogo loans it will buy from Shinsei Bank, the nationalised
bank recently sold to US investors.  Other creditors will
most likely follow suit citing the government's decision to
forgive Sogo's debt.

Some 73 banks have approved a Y632bn debt-relief scheme
which in turn will cut the liabilities to Y1,700B caused by
overexpansion in Japan's "bubble years."


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

DAEGU BANK: Facing huge loss
HANVIT BANK: Facing huge loss
KOREA DEVELOPMENT BANK: Facing huge loss
KOREA EXCHANGE BANK: Facing huge loss
KOOKMIN BANK: Facing huge loss
KORAM BANK: Facing huge loss
KWANGJU BANK: Facing huge loss
NATIONAL FED.OF FISHERIES: Facing huge loss
PEACE BANK: Facing huge loss
PUSAN BANK: Facing huge loss
SEOUL BANK: Facing huge loss
-------------------------------------------
Potential losses for 12 banks total 3.9 trillion won (US$
3.48 billion), according to financial sources Friday.

Hanvit holds the most debt with 776.9 billion won, followed
by Seoul Bank with 767 billion won and Korea Exchange with
583.7 billion won.  Other losses include 273.4 billion won
at Kookmin, 136.8 billion won at Koram, 150.2 billion won
at Hana, 107 billion won for Peace Bank, 111.1 billion won
for Daegu Bank, 171.9 billion won at Kwangju Bank, 73.1
billion won at Pusan Bank, 158.3 billion won at Korea
Development Bank and 194.7 billion won for National
Federation of Fisheries Co-operatives.  (Asia Pulse  30-
June-2000)

DAEWOO GROUP: Foreign creditors seek debt sale
----------------------------------------------
Foreign creditors holding debts from Daewoo affiliates
applied to sell 80 percent of their holdings to Korea's
special purpose company as of the end of June, the
Financial Supervisory Commission said Monday.

Applications for the debt sales by foreign creditors
covered US$ 3.4 billion out of the US$ 4.3 billion total
unsecured debts held by the foreign creditors.  The
government-run Korea Asset Management Corp will buy the
unsecured debts through a special purpose company, a kind
of paper company.

The first sales application was filed on June 22, and the
FTC extended the June 30 application deadline for three
weeks at the request of foreign firms.  They cover about 95
percent of the unsecured debts.

"Foreign creditors have accepted the debt workout programs
for Daewoo affiliates, and the workouts are expected to
proceed smoothly, thanks to the favorable reaction from
foreign creditors," FTC source said.  (Asia Pulse  03-July-
2000)

DAEWOO MOTOR: Ford due diligence to begin July 10
-------------------------------------------------
Daewoo Motors choose Ford Motors Corp. as the preferred
negotiating partner in the sell off of the former, but a
restructuring committee of the Daewoo Motors will conduct a
due diligence evaluation simultaneously with price talks so
that a deal could be signed by the end of August.  A
spokesman said that the number of negotiating partners has
been reduced to one preferred bidder and the agreed amount
is still not known. (Digital Chosun 02-July-2000)

HYUNDAI GROUP: To proceed with spinoff despite KFTC
---------------------------------------------------
The Korea Fair Trade Commission (KFTC) decision rejecting
the Hyundai Group  reverse spin off plan will not affect
Hyundai founder Chung Ju-yung decision lowering his 9 1/2
percent stake at Hyundai which is below the 3 percent
allowable for a spinoff of the automobile unit from the
group.  Instead the spinning off all the other subsidiaries
from the group, in effect, will leave the automotive sub-
group standing alone.  (Digital Chosun 02-July-2000)


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

BANK NEGARA MALAYSIA: Borrowing from interbank
----------------------------------------------
Bank Negara Malaysia (BNM) is expected to borrow RM1
billion (US$ 263.15 million) from the interbank market
today.  The amount would be borrowed on a one-week tenure
via competitive tender.  This is to offset an estimated
liquidity surplus of RM2.836 billion, of which RM797
million is in the conventional system and RM1.857 billion
in Islamic banking operations.  (Asia Pulse  04-July-2000)

CARPETS INT'L MALAYSIA: Changing focus with acquisitions
--------------------------------------------------------
Carpets International Malaysia Bhd is poised to return to
the black in the next financial year with the completion of
a series of acquisition exercise that will turn the company
into a water treatment operator.

The proposed exercise include the acquisitions of the
entire equity interests in Sungai Harmoni Sdn Bhd,
Taliworks (Langkawi) Sdn Bhd, and a 45% stake in C.G.E.
Utilities (M) Sdn Bhd, all for RM195mil.  The Securities
Commission has given an extension date until Sep 6, 2000
for Carpets to complete the acquisitions.

"Shareholders can look forward to a much brighter future
with the new business as we will have the experience,
expertise and the financial capabilities to explore all
areas of water management in other states as well,'' said
executive chairman Datuk Haji Zabir Bajuri told Star
Business after the company AGM in Shah Alam yesterday.

Carpets will issue 97.5mil new shares to pay for the
acquisitions and with the enlarged share base, Carpets will
be transferred to the main board next year.  The existing
and currently loss-making carpet manufacturing and
distribution business would be injected into a wholly-owned
subsidiary within the group, Zabir said.

The water management contracts awarded to the soon-to-be
acquired companies include operations of the Sungai
Selangor Water Treatment Plant Phase 1 and Phase 2.
Negotiations are still on-going for Phase 3.  Through
Taliworks, the water management operations of the Langkawi
island is also in their contract list.

Managing director Dato' Haji Abdul Ghani Haji Pateh Akhir
said Carpets would still make a small pretax loss this year
due to the delay in the proposed acquisitions.  Carpets
reported a 41% increase in turnover to RM26.3mil for the
financial year which ended on Dec 31, 1999. Its pretax loss
were reduced from RM13.1mil in 1998 to RM7.5mil in 1999.
Zabir said Carpets has already received approval from the
Securities Commission for the exercise, and was waiting for
the final approval from the Foreign Investment Committee.

"We do not foresee any problems in getting the approval as
all the major points raised during the 16-month long
discussion were all resolved," Zabir said.  (Star Online
27-June-2000)

INNOVEST BHD: Refocusing operations on local biz
------------------------------------------------
Innovest Bhd will focus on local operations particularly
its timber concession activities after its proposed
restructuring exercise.

Innovest executive director Ch'ng Teck Siang said the
proposed restructuring exercise was estimated to be
completed by the end of first quarter of 2001, subject to
authority's approval.  The group suffered two difficult
years in 1999 and 1998 where it registered a pre-tax loss
of RM212.65mil and RM197.88mil respectively.

"The loss in the property division was mainly caused by
provision of diminution of values in development properties
and investment properties," said Ch'ng.

The repositioning of the company's focus to the local
market would involved the selling of its African operations
and to write off substantially all the costs of investments
and fixed assets in that continent.  (Star Online  27-June-
2000)

MALAYSIAN RESOURCES CORP.: To sell property to repay debt
---------------------------------------------------------
Malaysian Resources Corp Bhd, owner of the nation's biggest
newspaper publisher, plans to sell an office tower and a
shopping mall for a total of RM275 million (S$125 million),
as it looks to repay debt.

The company, which also has interests in broadcasting, has
been selling assets to help repay RM1.1 billion of loans.
In February, it sold 22.7 per cent of Malakoff Bhd, a power
company, for RM744.1 million.

MRCB, as the company is known, joins a string of companies
from Renong Bhd, Malaysia's biggest industrial group, to
Naluri Bhd, controlling shareholder of Malaysian Airline
System Bhd, which are selling assets to pay their bills
amid the nation's economic rebound.

According to advertisements published in The Edge weekly
newspaper over the weekend, the company is asking for RM85
million for its 23-storey office building -- Menara MRCB --
in Shah Alam, outside Kuala Lumpur. A 51 percent stake in
the tower is open to foreigners.

The building, which has a total area of 216,000 sq ft to
let out, is 90 per cent occupied and will be fully tenanted
by next month. It now brings in a total rental income of
RM540,000 a month.  The company also wants to sell, for
RM190 million, a seven-story shopping mall in Shah Alam,
which has a gross rental income of RM300,000 a month,
according to the advertisement.

Shares of MRCB yesterday fell one sen to RM2.06.
MRCB lost RM1.4 billion in the year ended Aug 31, 1999,
hurt by Malaysia's recession and decade-high interest
rates. (Business Times  27-June-2000)

MBf HOLDINGS BHD: Proposing debt restructuring
----------------------------------------------
MBf Holdings Bhd expects to make a filing with the Hong
Kong courts next month for a court-convened meeting as part
of its proposed debt restructuring exercise involving
foreign creditors.

"We hope the court will grant us a hearing by August and we
can obtain its sanction in September," said MBf managing
director and chief executive officer Datuk Loy Teik Ngan.

Loy said the approval of foreign creditors of the company's
restructuring scheme would pave the way for MBf shares to
be requoted on the KLSE.

"The local creditors had approved in principle our
restructuring scheme 14 months ago and we hope the foreign
creditors will not delay us," he told reporters after the
company's AGM in Subang Jaya yesterday.

Loy said the approval of the local creditors was subject to
the group getting the approval of foreign creditors.  MBf
had put together a composite scheme early last year which
included restructuring of debts amounting to RM1.33bil. The
number of foreign creditors and the total debts involved
were higher than local ones.

For the financial year ended Dec 31, 1999, the group
recorded a pre-tax loss before exceptional items of
RM448mil on operating revenues of RM952mil. (Star Online
27-June-2000)

TRANS CAPITAL HLDGS: Finalizes debt rehab agreement
TRANS CAPITAL SDN: Finalizes debt rehab agreement
---------------------------------------------------
The Corporate Debt Restructuring Committee (CDRC) has
successfully assisted Trans Capital Holdings Bhd (TCHB) and
its wholly-owned subsidiary Trans Capital Sdn Bhd (TCSB) to
finalise a debt restructuring agreement with their lenders
involving an outstanding debt of RM185.6mil.

The CDRC said TCHB had submitted an application on the
restructuring to the Securities Commission (SC) on May 25.
The revamp aims to restructure the total principal debts
and accrued interests owed by TCSB into term loans and
unlisted redeemable convertible cumulative preference
shares (RCCPS) convertible into new TCHB ordinary shares of
RM1 each.

Under the agreement, the lenders have two options:
The first will see 50% of the principal amounts of the
existing debts to be convertible into 5-year term loans,
repayable by eight equal semi-annual instalments. The
balance will be satisfied by the issue of RCCPS "A," RCCPS
"B" or RCCPS "C."  Under the second option, 100% of the
debts shall be satisfied by the issue of RCCPS "B'' to the
lenders.  (Star Online  27-June-2000)


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

PHILIPPINE NAT.BANK: PNBRFI to meet on stake pledged to Tan
-----------------------------------------------------------
The Philippine National Bank Retirement Fund, Inc. (PNBRFI)
will decide this week when it will exercise its option on
the 10.59% stake in the bank it holds through three special
purpose vehicles (SPVs).

In a separate board meeting, the Philippine National Bank
board announced the sale of the bank's remaining 39.29%
stake in Maybank Philippines (MPI) to Malayan Banking
Berhad (Maybank). and a  May losses reaching  PhP125
million, compared with PhP350 million. The PNBRFI fund will
also decide on its position on PNB management's decision to
reduce the bank's par value to 60 Philippine pesos (PhP)
from PhP100 per share.

The voting rights on the shares have been pledged to beer
and tobacco magnate Lucio C. Tan, who claims to own 46% of
PNB. The tycoon funded the fund's acquisition by extending
a PhP3.3-billion (US$76.3 million at PhP43.253:US$1) loan.
The loan, due September 14, is secured by the three SPVs'
common shares in PNB.

Attached to the loan is an option agreement, which protects
the PNBRFI from any loss. The agreement grants creditors
the prerogative to buy the SPVs' equity shares from PNBRFI
while the put option gives the retirement fund the choice
to sell the shares to the creditors.  Should PNBRFI decides
to exercise its put option, it will have to sell its 10.59%
stake to Mr. Tan and pay off the PhP3.3-billion loan.

Meanwhile, the PNB board last week also approved the sale
of the bank's remaining 39.29% stake in Maybank Philippines
(MPI) to Malayan Banking Berhad (Maybank).  In its
disclosure to the Philippine Stock Exchange, PNB corporate
secretary Roderick C. Salazar III said the sale raised
PhP1.41 billion.

It also announced that  its May losses reached PhP125
million, compared with PhP350 million during the first
month that Mr. Tan sat in its 11-man board.  In a
statement, PNB president Feliciano L. Miranda, Jr. said
although the bank posted a net income of PhP10 million from
its operations, additional non-operating expenses such as
loan loss provisions wiped out the income.  (Business World
03-July-2000)

URBAN BANK: All directors face criminal raps
--------------------------------------------
The Philippine Deposit Insurance Corp. (PDIC) is preparing
additional charges against the entire board of directors of
Urban Bank as part of its investigation into the root of
the bank's collapse.

Preliminary findings by bank examiners show Urban Bank's
board gave management "blanket authority" for various asset
transactions.  Bangko Sentral (Central Bank of the
Philippines) Gov. Rafael B. Buenaventura said Urban Bank
officers, in defending their actions, claim the authority
given them by the board included the go signal to initiate
several asset transfers between the bank and its investment
house subsidiary, Urbancorp Investment, Inc.

He said some transfers of "bad assets" were made between
the bank and the investment house which may have been
detrimental to the interest of bank depositors.  Urban
Bank's case serves as the litmus test for various legal
reforms that bank regulators have pushed for in recent
years, such as those under the New General Banking Act of
2000. (Business World 03-July-2000)

URBAN BANK:  BanCom likely to take over
---------------------------------------
Two banks -- Bank of Commerce and Asia United Bank (AUB) --
are the most likely  buyers of cash-strapped Urban Banking
Corporation, but the Bangko Sentral ng Pilipinas (BSP) may
favor the former because it will include its investment
arm, Urbancorp Investment Inc., for a price of P1.65
billion.

BSP governor Rafael Buenaventura said AUB offered to buy
the bank and to manage the investment house.  "AUB should
be interested in the investment house, as BSP would like to
help both the bank and the investment house," he said.

AUB was offered a P600 million capital infusion similar to
Bank of Commerce  thru the Social Security Systems (SSS)
Philippine Deposit Insurance System (PDIC chairman and
Finance Secreatry Jose T. Pardo said.  SSS signed an
agreement with BanCom to infuse P600 million to revive
Urban Bank. SSS had a 15-percent stake in the beleaguered
bank before it was placed under PDIC receivership.

The BSP placed Urban Bank under the receivership of the
PDIC last April 26, shortly after its closure due to
liquidity problems.

WESTMONT INVESTMENT CORP.: SEC asked to halt asset sale
-------------------------------------------------------
Westmont Investment Corp. (Wincorp) minority stackholders
want the Securities and Exchange Commission to intervene in
the sale of assets to settle the P7 billion planned
settlement of claims.

Alfonso Reyno, a Wincorp director, called a minority
stockholders meeting last week discussing the planned
disposition of brokerage unit Wincorp Securities for about
P100 million.  Also expected to be sold is Unioil Resources
and Holdings Inc., the publicly-listed parent firm of
Wincorp will also be sold to PSE governor Vivian
Yuchengco's own brokerage firm First Resources and
Management Corp. for roughly P80 million.

The minority group, however, contested that since the firm
is on the SEC's freeze order, it has no business auctioning
off its assets and if so, the SEC should be the one
overseeing its orderly disposition and also look after the
interest of minority owners.  (Business World 3-July-2000)


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

DIVERSIFIED INTRACO LTD: Gives up vehicle repair ops
----------------------------------------------------
Diversified Intraco Ltd, once a force in the Singapore
automotive field, has shed the last vestige of that high-
turnover business by giving up its vehicle-repair
operations.

Most of the staff at the repair unit Intra-Motors had been
given their redundancy letters, the Singapore Business
Times quoted group general manager for finance Tony Mallek
as saying. He added that Intra-Motors managing director
Michael Lee "is still with the company."

Mallek said the group was also selling for about S$10mil a
building which once housed its Rover business but which was
now rented out to a number of tenants.  Intraco's
withdrawal from the motor trade started in 1998, when it
gave up its Rover distributorship after continued losses.
It had entered the industry in 1988 with Russia's Lada
brand.

A number of factors--including a rising pound sterling,
product quality problems, lack of new models, over-stocking
and consequently management reshuffle of key positions at
Intra-Motors--led to the failure of the distribution
business.  The company also had rights to Holden cars, LDV
vans and Renault heavy commercial vehicles.

Intraco then said it would focus on the car rental business
with its fleet of mainly Rover vehicles.  But the business
was buried under intense competition, and within a year the
company sold off the entire division to newly-formed Trac
Leasing for about US$30mil. Intraco then banked its hopes
on vehicle repair and maintenance.

Again, about a year on, it is now out of the business.
The company said in a statement the closure of the car
repair business was not expected to have a material effect
on its net assets and earnings per share for this fiscal
year.  (Star Online  27-June-2000)

NATSTEEL ELECTRONICS: To defer restucturing
-------------------------------------------
NatSteel Electronics is deferring plans to restructure
itself, barely a month after announcing that it would break
into two totally separate listed entities.

The reason, a powerful one: its current sharply reduced
share price.  It said yesterday that steep falls in its
market valuation as well as that of its electronics
subsidiary NatSteel Electronics (NEL) had created a
disparity between assets and debts to be assumed by
companies under the group.

Under the restructuring plan announced on May 11,
NatSteel's core steel and industrial businesses would be
transferred to a new wholly owned subsidiary.  Its
remaining businesses, including its electronics businesses
-- currently held under listed NEL and NatSteel Broadway --
would be transferred to a second wholly owned subsidiary.

The two new companies, called "Newco-1" and "Newco-2" for
the purposes of the restructuring, would then be listed on
the mainboard of the Singapore Exchange.  Existing NatSteel
shareholders would receive one listed Newco-1 share and one
listed Newco-2 share for each share they own in NatSteel.

However, since the announcement, the share prices of
NatSteel and NEL have plummeted after the latter issued a
profit warning on May 17 on concerns over component
shortages.  NatSteel plunged from $4.02 then to yesterday's
$2.39 while NEL dived from $8.20 to $5.30.  The declines
wiped out $550 million and $1.25 billion in market
capitalisation from NatSteel and NEL respectively.

NatSteel officials could not be reached for comment but the
company said in a statement that it is "of the opinion that
it would not be in the best interest of shareholders to
proceed with the proposed restructuring for the time
being."

It added that it would continue to review all alternatives,
including the deferred plan.  It said that further
information on the exercise would be announced later after
finalising the plan with its advisers.  The restructuring
plan was undertaken initially with the aim of obtaining
better market valuations for NatSteel's operations and
making its management more effective. For example, the
value of NatSteel's stakes in NEL and NatSteel Broadway on
May 10 was $1.6 billion compared with its total market
capitalisation of $1.5 billion.

"This implies that the market has placed little value on
NatSteel's other businesses outside of electronics," said
NatSteel president Ang Kong Hua.  (Straits Times  28-June-
2000)

OVERSEAS UNION BANK: May bow out of broking scene
-------------------------------------------------
Overseas Union Bank -- the last of Singapore's Big Four
local banks to enter the Malaysian broking scene -- may be
the first to bow out amid the consolidation of the
Malaysian sector.

On Monday night, Hwang-DBS Securities, which is 24 per cent
owned by Singapore's DBS Securities, said it struck a deal
to acquire 51 per cent of PJB Pacific Securities from Johor
Capital for RM48.5 million (S$22 million). OUB's Securities
Investment Pte Ltd owns the remaining 49 per cent of Johor-
based PJB Pacific.

Hwang-DBS will have to make a general offer for the rest of
the shares it does not own in PJB Pacific. An analyst said
OUB may accept the general offer and leave the Malaysian
broking scene. The Singapore bank had paid S$12 million for
the stake in the Malaysian brokerage firm last August.
According to information provided by Hwang-DBS, PJB Pacific
has been incurring losses in the last two years -- RM2.7
million in 1999 and RM2.9 million in 1998.

But it's not a done deal yet.  Penang-based Hwang-DBS said
it will rescind the deal if the net tangible asset per
share of PJB Pacific falls below 90 per cent of its value
at a later date. PJB Pacific's latest NTA is 82 sen per
share based on its assets of RM41 million and share capital
of 50 million shares.

Hwang-DBS -- one of the biggest brokerages in Malaysia --
has been looking out for more brokerages following its
acquisition of Omega Securities in Shah Alam last year.
Hwang-DBS, which was started by businessman Hwang Sing Lue,
is also eyeing Amsteel Securities.

While Singapore's DBS Securities is expected to maintain
its presence in Malaysia through Hwang-DBS, the fate of
other Singapore brokerages in Malaysia is less clear in the
current drive to consolidate the industry.  Other Singapore
bank-backed stockbroking firms in Malaysia are OCBC
Securities (Melaka) and Affin-UOB Securities. Non-bank
backed Singapore houses with tie-ups in Malaysia include
Kay Hian and Kim Eng.  (Business Times  28-June-2000)

THAKRAL CORPORATION: Suffers massive $175m loss
-----------------------------------------------
Thakral Corporation recently reported full-year net loss,
shedding another $174.5 million over and above the previous
year's loss of $231.6 million.

Despite these losses consumer electronics distributor will
receive from the Thakral family, as the major shareholder,
$30 million as additional equity. Managing director
Inderbethal Singh Thakral said that it had provided for
exceptional items to the tune of $111.78 million. Thakral
told a news conference yesterday that the company was
hoping to return to profitability next year once its
restructuring is completed.

According to the restructuring plan worth $57.3 million
will be  the closure of non-core business and $42.1 million
foreign exchange costs on option contracts carried forward
from the previous year.  Among the various steps taken to
streamline operations, the group had managed to reduce its
inventory by 50 per cent, against a target of 30 per cent.

At the same time, warehouse space had been cut by 100,000
sq ft. The target was to cut it by another 50,000 sq ft
this year.  The company said that it reduced operating
losses by over 50 per cent to $11.92 million, reflecting
margin improvements and positive impact from ongoing
restructuring efforts. Thakral said that it was gearing up
to embrace e-commerce in a big way to improve its sales by
web enabling suppliers and dealers. (The Strait Times 29-
June-2000)


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

KRISDAMAHANAKORN PLC: Debt rehab progress reported to SET
---------------------------------------------------------
Krisdamahanakorn Public Company Limited revealed last week
the progress of the rehabilitation and debt restructuring
plan while the the financial projection under the completed
rehabilitation plan is also being  reviewed by the auditor

The Restructured Loans include: Asset Management
Corporation (AMC), in the amount of Baht 3,662.97 million
(account for 18.19% of total loans); National Finance Plc.,
totaling Baht 1,014.73 million (5.04%); Citibank, in the
amount of Baht 637.08 million (3.16%); Asia Credit Plc.,
totaling Baht 240.80 million (1.20%); Thai Military Bank
Plc., in the amount of Baht 14.89 million (0.07%). The
total of loans to be restructured is Baht 9,445.70 million
(46.91%).

The restructuring of the following loans was approved:
Krung Thai Bank Plc., in the amount of Baht 4,996.38
million (24.82%); Ekachart Finance & Securities Plc., in
the amount of Baht 121.84 million (0.61%). The total of
restructured loans is Baht 5,118.22 million (25.42%).

KMC will be requesting an extension of the rehabilitation
plan till December 31, 2000 because most of the
restructured loans will be done by the end of the year.
(Stock Exchange of Thailand  03-July-2000)

KRUNG THAI BANK: Steams ahead with loan restructuring
-----------------------------------------------------
Half of the non-performing loans (NPLs)of Krung Thai Bank,
amounting to Bt116.9 billion, was restructured and made
possible partly because of the transfer of to transfer
problem loans of Bt537 billion to its asset-management
company (AMC).

Dusit Tengniyom, the bank's senior executive vice president
said the bank's completed debt restructuring totalled about
Bt20 billion per month, higher than earlier expectations of
Bt15 billion a month. From the fourth quarter of 1998 to
the end of June this year KTB restructured NPL's totalling
Bt260 billion, compared to the bank's total problem loans
of Bt600 billion.

KTB's loan problem is huge after its integration with the
defunct First Bangkok City Bank in the fourth quarter of
1998. By the end of September this year KTB is to transfer
problem loans of Bt537 billion to its asset-management
company (AMC), which is 100 per cent owned by the Financial
Institutions Development Fund which now owns 93 per cent of
the bank.

PRECIOUS SHIPPING PLC: Euro bondholders' meeting delayed
--------------------------------------------------------
Precious Shipping Plc's euro bondholders failed to muster
the required 60 percent quorum, endangering the company's
debt restructuring plan.  Khushroo Wadia, finance director
of Precious Shipping, said only 59.35 percent attended the
meeting, which was rescheduled to July 14. The meeting now
requires only the lower quorum of 30 percent of
bondholders.

SIAM GENERAL FACTORING PLC: Debt rehab pact reported to SET
-----------------------------------------------------------
Ruangkitti Keofanapadon, Managing Director, has reported to
the SET that Siam General Factoring Public Company Limited
signed a debt restructuring agreement with nine lenders on
June 30, the debts amounting to US$ 33,000,000.

Ruangkitti said the agreement calls on the nine creditors
to convert debt amount US$ 11.55 million -- equivalent to
35% of the principal outstanding -- to be capital.  The
remaining principal outstanding, US$21.45 million, needs to
be repaid within five years.  The interest payment on the
outstanding amount of restructured debt will accrue at the
rate of SIBOR + 0.25% for the first year, SIBOR + 0.5% for
the second year, and at SIBOR + 1.0% for the third-till-
fifth year.

Within 2001, the company must increase capital by issuing
common shares at least Baht 230.48 million.  The increase
in capital will be done by issuing preference shares
equivalent to US$ 11.55 million and offering for
subscription to the existing shareholders with a par value
of 10 Baht the board of directors pass a resolution.
(Stock Exchnage of Thailand 3- July-2000).

SUBMICRON TECHNOLOGY PLC: Charn seeks last-minute solution
----------------------------------------------------------
Submicron Technology Plc may likely file bankruptcy despite
presenting a rehabilitation plan to creditor banks.

Deja Tulananda, senior executive vice-president of Bangkok
Bank, said the survival of Submicron depended on two basic
options-seeking a new partner or receiving government
assistance.  Bangkok Bank is one of the major creditor
banks of the electronics company. He said it was unlikely
that the government would assist the firm, noting that past
efforts to revive the project had failed.

An alternative plan that maybe adopted by Submicron is to
request debt restructuring under bankruptcy procedures.
However, the request made to the Legal Execution Department
is unlikely to receive creditors' approval as there are no
details supporting the future operation of Submicron,
particularly how it would attract a foreign partner to
inject additional capital, an issue of great importance.

THAI DURABLE TEXTILE: Debt-rehab progress reported to SET
---------------------------------------------------------
Thai Durable Textile Plc submitted its rehabilitation plan
to the Stock Exchange of Thailand making Bangkok Bank owner
of the 85 percent Commercial Term Sheet. The plan is
expected to be complete August 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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