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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

            Wednesday, July 12, 2000, Vol. 3, No. 134

                                    Headlines


* A U S T R A L I A *

ANZ GRINDLAYS: Parent dismisses damages threat
CINEMA PLUS: Looking for white knight with $5M-$10M
ESMERALDA EXPLORATION: Hungary seeking $180M compensation
HIH INSURANCE: More profit downgrades add to pressure
NORTH LTD: Japanese steel mills bucking takeover
SATELLITE GROUP: ASIC investigates former company head


* C H I N A  &  H O N G  K O N G *

CHUN TAI HOLDINGS: Debt-rehab progress given HKSE
EASY HOLD DEVELOPMENT LTD: Facing winding up petition
GUANGDONG INVEST.: Creditors' reply to rehab plan July 25
HAINAN INT'L TRUST & INVESTMENT: Default on loan feared
HIKARI TSUSHIN INT'L LTD.: Posts wider net loss
S.MEGGA INT'L HLDGS.: HKSE told of debt-rehab progress


* I N D O N E S I A *

KIM JOHANES: 2 foreign firms file bankruptcy suit vs. it
PT BAKRIE: Debt revamp plan seen getting nod in August


* J A P A N *

NAGASAKIYA CO.: Files for court protection
NISSAN MOTOR: In talks to sell 20 affiliates
SOGO CO.: To ask former chairman to help cover debt


* M A L A Y S I A *

LAND & GENERAL BHD: Some units miss loan payments
TIME dotCOM: Gov't to take key stake


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

ASB GROUP: Ayala, two others eye assets
ATLAS CONSOL.MINING & DEVEL.: Disclosure deadline extended
BHI HOLDINGS:  Disclosure deadline extended
C & P HOMES Inc.: Disclosure deadline extended
MEDCO HOLDINGS: Disclosure deadline extended
NATIONAL STEEL CORP.: Gov't to allow dilution of stake
PHILIPPINE NAT.BANK: Three vie for stake
PHILIPPINE NAT.CONSTRUC.CORP.: Disclosure deadline extended
URBAN BANK: Petron, Meralco reject debt-equity swaps
WELLEX INDUSTRIES: Disclosure deadline extended
ZIPPORAH REALTY HLDGS.: Disclosure deadline extended


* S I N G A P O R E *

ACMA LTD: Refocusing-spinning off or closing subsidiaries


* T H A I L A N D *

AROMATICS THAILAND PLC: Approval sought for rehab plan
THAI OLEFINS CO.: Approval sought for rehab plan
THAI PETROCHEM.INDUS.: Debt plan sumission by month-end


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

ANZ GRINDLAYS: Parent dismisses damages threat
----------------------------------------------
ANZ Banking Group said yesterday that a $200 million court
claim against its South Asian banking subsidiary, ANZ
Grindlays, did not threaten the planned sale of the unit to
Standard Chartered Bank.

In a move some observers believe may threaten the sale
process, the National Housing Bank on Friday applied to the
Supreme Court of India for the return of $200 million paid
to Grindlays three years ago.  NHB's latest court move
comes at a sensitive time for ANZ, which in April announced
its intention to sell the Grindlays franchise to Standard
Chartered for $2.2 billion.

ANZ's plan to sell Grindlays increases the pressure on the
bank to resolve the NHB dispute, which has been dragging on
for eight years.  To finalise the sale of Grindlays, ANZ
needs the approval of the Reserve Bank of India, which is
NHB's parent.

The dispute goes back to 1992, when NHB launched an action
against Grindlays alleging that proceeds of cheques drawn
by NHB in favour of ANZ were improperly credited to the
account of a Grindlays customer named Harshad Mehta.

In 1992 Mr Harshad Mehta, one of Bombay's leading financial
brokers, was borrowing from Indian and foreign institutions
on the basis of fictitious securities holdings. But in
March 1997, a decision by an Indian arbitration court
forced NHB to make a $200 million payment to Grindlays
after ruling that the ANZ subsidiary had not illegally used
NHB cheques to facilitate illegal share transactions.

NHB is now arguing that ANZ should be made to repay that
money on the basis of a special court finding in February
1998 which ordered that the $200 million award be set
aside.  It is understood that Indian regulators have sought
guarantees from ANZ and Standard Chartered that potential
liabilities stemming from the dispute can be met by
Grindlays in the future.

A spokesman for Standard Chartered, Mr Alex Blake-Milton,
said yesterday that he expected the sale to be completed by
the end of this month, but declined to comment on the NHB
legal action.

"The whole process is down to the courts and it would be
inappropriate for us to comment on the NHB matter," Mr
Blake-Milton said. "We are in progressive talks with the
RBI and we are satisfied with the progress of those
discussions.  Subject to satisfactory outcomes of those
discussions, we expect to complete the purchase of
Grindlays at the end of this month."

If Standard Chartered acquires Grindlays it will become the
biggest international bank in India, Pakistan and
Bangladesh.  At the announcement of the Grindlays sale in
April, the chief executive of ANZ, Mr John McFarlane, said
his bank had provided indemnities to Standard Chartered on
the National Housing Bank issue.

"As part of the transaction, ANZ will provide Standard
Chartered with indemnities on credit and litigation
matters, including the National Housing Bank matter," Mr
McFarlane said.  "On completion, provision will be made for
all potential claims under the indemnities, together with
costs arising and tax liabilities.  This will include a
reassessment in the light of circumstances at the time, in
respect of all residual financial risks relating to
Grindlays."

Mr McFarlane indicated that if full provisions for possible
claims were taken, the net benefit of the Grindlays sale to
the group's second-half profit would be at least $400
million.  He told The Australian Financial Review in
February that he would attempt to resolve the NHB saga by
the end of this year as part of his overall effort to
improve ANZ's risk profile.  ANZ's head of media relations,
Mr Paul Edwards, yesterday declined to comment on the NHB
legal action or the progress of talks with Indian
regulators.

"It is not appropriate to comment on the petition. However,
ANZ wants the NHB matter to be resolved in a timely
manner," he said.  "We have previously asked India's
Supreme Court for an early hearing of our NHB appeal, which
has now been pending for several years. We remain confident
of our case in the appeal."   (Australian Financial Review
11-July-2000)

CINEMA PLUS: Looking for white knight with $5M-$10M
---------------------------------------------------
IMAX cinema operator Cinema Plus's survival still hangs in
the balance, with the company's administrators searching
for an investor with between $5 million and $10 million.

Cinema Plus - which has IMAX giant screen theatres in
Sydney, Melbourne, Brisbane, Adelaide, Auckland and Bangkok
and one under construction in Perth - appointed a voluntary
administrator in May.  This followed a poor 12 months for
the company, which included profit downgrades and the
unveiling in March of a first half loss of $7.2 million.

Cinema Plus' administrator Ferrier Hodgson told creditors
at a meeting in Sydney today the troubled company needed
somebody who was "prepared to introduce financial stability
to the group. If I was to measure that financial stability
I would say it would be somewhere between $5 and $10
million," administrator Ian Ferrier said.

He said Ferrier Hodgson was in discussions with "one or
two" potential investors. After conducting a preliminary
investigation, the administrator said it believed there was
no merit in selling Cinema Plus. It also said liquidation
was the least attractive option available to creditors
because there would be no "potential opportunity for the
shareholders to recoup any value for their investment."

The best option for creditors was for a deed of company
arrangement to be executed. This would offer an opportunity
for creditors to obtain a return, through time, exceeding
the liquidation scenario, Ferrier Hodgson said.
Although further investigations were necessary, Ferrier
Hodgson said in a report it held a preliminary view that

"The Cinema Plus Group may have traded whilst insolvent for
some time prior to our appointment."

The report also said, based on its review of minutes from
the Cinema Plus board, former executive chairman Gary Blom
appeared "to exert considerable authority and the board may
have failed to adequately monitor his activities. Our
preliminary view is that the board of directors may have
breached its duties in this regard," the report said.

Ferrier Hodgson has proposed a restructured business model
for Cinema Plus, describing the existing model as not
viable. The new model involves profit improvements, cost
savings and the restructure of contractual rights to
Canada-based IMAX Corporation and MTM Entertainment Trust.

The creditors' meeting was told both MTM and IMAX were
unable to commit to any restructure at this stage.
Cinema's Plus's fall in fortunes has been blamed on the
company's strategy to start-up a large number of IMAX
theatres in a short space of time.  Also at blame were
costs associated with restructuring the business and below
expectation performances by a number of its films.

Creditors voted today to adjourn the meeting for three
weeks.  Cinema Plus's shares were suspended on May 19 worth
just 11 cents. In July last year they were worth around
$1.00.  (AAP Newsfeed  10-July-2000)

ESMERALDA EXPLORATION: Hungary seeking $180M compensation
---------------------------------------------------------
The Hungarian Government is claiming nearly $180 million in
damages from Australian mining company Esmeralda, which it
says was responsible for a devastating cyanide spill.

The claim comes after 100,000 tonnes of cyanide-
contaminated mud spilt from a tailings dam at a mine in
Romania.  Lawyers for the Hungarian Government say they are
confident of gaining millions of dollars in compensation
from from Esmeralda.

The Hungarian Government plans to sue Esmeralda Exploration
for $179 million. It alleges the company is responsible for
a cyanide spill at the Aural gold mine in Romania in
January.  The Government says the spill polluted several
rivers and killed tonnes of fish.

A lawyer representing the Government says it is still
trying to get a copy of Esmeralda's insurance policy but is
confident insurance will pay for the damage claimed.
However, the company's administrator said the insurance
policy would not cover the claim.

A meeting of creditors today has adjourned for two months
to get more detail on the legal claim and to examine the
company's position more closely.  A lawyer for Esmeralda,
Michael Hardy, says they have asked for more details on the
compensation claim before deciding what action to take.

"There is no doubt that there was an escape from the
tailings dam and that the escape had the effect of putting
cyanide into the river, but exactly what the causes were
are only generally known," he said.  "As far as we're
concerned what is even less well known is the relationship
of what happened and the subsequent damage."

The Western Australian Government admits the spill could
damage the reputation of the state's mining sector. WA
Mines Minister Norman Moore says although there is yet to
be a formal inquiry into the spill, it is embarrassing that
an Australian company is involved.

"It has the capacity to do that," he said. "I haven't been
informed in any formal sense that our industry is
considered to be unsafe or environmentally damaging. It's
not a reflection on Australia in that sense, it's a
reflection perhaps on the way in which those environmental
conditions were implemented." (ABC News Online  11-July-
2000)

HIH INSURANCE: More profit downgrades add to pressure
-----------------------------------------------------
HIH Insurance has suffered more profit downgrades by
leading stockbrokers amid concern that the group will
report a disappointing full-year result.

The downgrades come at a difficult time for the company,
given that several large shareholders are lobbying for
management changes, including the removal of chief
executive Mr Ray Williams.  The downgrades - by UBS Warburg
and Salomon Smith Barney - are based on concerns of lower
investment income and worries that predicted premium rate
increases have not eventuated.

UBS Warburg, which also lowered its recommendation to
"reduce," has dropped its profit forecast for the year to
June 30 by 13 per cent to $61.3 million, citing lower
insurance earnings and the loss on the company's stake in
One.Tel.

"It appears that the rate increases that were so
enthusiastically spoken about at the first-half result have
failed to materialise," UBS Warburg said in a recent note.
Salomon Smith Barney dropped its forecast to $54 million
and reduced its recommendation from "outperform" to
"neutral."

"While the stock now appears extremely cheap, we believe
HIH has greater than average investment risk," the broker
said.

However, a spokesman for HIH Insurance said rate rises had
been put through in Australia, although offshore markets
such as the UK were yet to experience increases.

"They [the rate increases] have materialised and they are
sustainable," the spokesman said. "I don't believe anyone
in those offshore markets that we're in would be producing
fantastic results for that period because markets are tough
and rate increases are required.  The rate turnaround in
the UK is expected to be quite pronounced in the key
renewal period in December and January."

HIH shares have slumped from $2 a year ago to a low of 95›
last month amid concern the group is underprovisioned. The
shares have recovered in recent weeks thanks partly to
buying by HIH director Mr Rodney Adler, who now controls
more than 5 per cent of the company.  Yesterday, the shares
finished up 2› at $1.19.

The lagging share price has led to calls for a management
shake-out in a bid to turn the company around.  Last year,
HIH changed its balance date from December to June, so
comparisons with the previous year's results are not
appropriate. (Australian Financial Review  11-July-2000)

NORTH LTD: Japanese steel mills bucking takeover
------------------------------------------------
Japan's steel mills have intensified their fight to defeat
a $2.8 billion hostile takeover bid by mining giant Rio
Tinto for Australia's diversified resources group, North
Ltd.

The Japanese steel makers made it clear that they would
seek to diversify their supply source if Rio succeed in
consolidating ownership of Australia's iron ore industry.
The message was conveyed through the Japanese industry
newsletter, The Tex Report, which suggested there could be
"white knights" about to come to North's defence.

The report suggested these could include South African
groups Anglo American and London-listed Billiton plc.
Japan's steel mills want diversified supply and argue that
a successful outcome of the Rio bid could stymie this.
The Tex Report said a sense of crisis was pervading the
steel makers, who believed Rio Tinto and BHP were moving to
a position where they could dominate the industry.

"This sense of crisis was further heightened by the change
of attitude of Rio Tinto and BHP, exhibited at the 2000
iron ore price talks - from competitor to collaborators,"
the report said.

However, the protests by the Japanese steel mill are not
likely to curb Rio's desire to acquire North at a price it
considers offers a substantial premium to North's pre-offer
share price.  Rio, now North's largest shareholder, issued
a supplementary bidder's statement yesterday in which it
said it expected to work in close consultation with North
management in conducting a proposed strategic review of the
target company's operations.  North's shares closed
yesterday at $3.83.  (Australian Financial Review  11-July-
2000)

SATELLITE GROUP: ASIC investigates former company head
------------------------------------------------------
The corporate regulator has begun investigating the former
head of Australia's first listed gay publishing and
property group.

The Australian Securities and Investments Commission (ASIC)
is to look into the business dealings of Greg Fisher, who
last week resigned suddenly as managing director of the
Satellite Group.  Last Friday, the commission issued a
court summons regarding Mr Fisher and a former Satellite
executive, asking that a receiver be appointed who could
sell property assets for the firm's benefit.

Shares in the company were suspended on Friday, at the
board's.  Satellite is chaired by the Australian Medical
Association's federal president, Kerryn Phelps. (ABC News
Online  11-July-2000)


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

CHUN TAI HOLDINGS: Debt-rehab progress given HKSE
-------------------------------------------------
Pursuant to Chun Tai Holdings' announcement dated 4th May,
2000, the Company made an offer to the Financial Creditors
on 14th June, 2000 concerning the restructuring of certain
outstanding indebtedness owed by CTIL and/or the Company to
the Financial Creditors, terms and conditions of which are
set out in the Offer Letter

Under the Offer Letter, in consideration of the Company
agreeing to pay the requisite amounts as specified in the
Offer Letter, which in aggregate amount to 20% of the
Outstanding CTIL Indebtedness owing to the Cash Banks as at
the date of the Offer Letter and the legal expenses
incurred by the coordinating bank for the transactions
contemplated under the Offer Letter, the Cash Banks as
beneficial owners agree to assign to the Company all their
right, title, interest and benefit in and to their
Outstanding CTIL Indebtedness.

The Offer Letter is conditional upon Cash Banks holding
Outstanding CTIL Indebtedness in an aggregate amount
exceeding HK$136,000,000 signing the Offer Letter by 7th
July, 2000 (or such later date as the Company may agree if
requested by the coordinating bank). On 6th July, 2000, the
Company was informed by the coordinating bank that the
condition for the Offer Letter has been satisfied.

Completion of the Offer Letter shall take place on 31st
July, 2000 or such later date as the parties may agree in
writing. Completion is contingent upon payment by the
Company of all amounts payable pursuant to the terms of the
Offer Letter.

On completion, approximately HK$136 million of indebtedness
owing by CTIL to creditors who are independent of the
directors, chief executive and substantial shareholders of
the Company, any of its subsidiaries or their respective
associates will have been extinguished by payments to be
made by the Company as described above, and is expected to
give rise to a one-off exceptional gain of approximately
HK$109 million in the consolidated accounts of the Group in
the financial year ending 31st March, 2001. (Hong Kong
Stock Exchange  10-July-2000)

EASY HOLD DEVELOPMENT LTD: 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
Pang Nin for the winding up of Easy Hold Development
Limited.  A notice of legal appearance must be filed on or
before August 15.

GUANGDONG INVEST.: Creditors' reply to rehab plan July 25
---------------------------------------------------------
Guangdong Investment Limited's restructuring plan is slated
to take effect Aug. 8 and creditors will formally reply to
the proposed plan July 25, according to an attendee at
Friday's creditors meeting.

Pending approval, the plan will take effect Aug. 8, the
attendee said. The Guangdong provincial government reached
a preliminary agreement with creditor banks of Guangdong
Enterprises (Holdings) Ltd., Guangdong Investment's debt-
laden parent, in December over a debt-restructuring plan.
As part of the agreement, Guangdong Enterprises will inject
an 81% stake in the Dongshen Water

Supply Project into Guangdong Investment. A person at
another creditor bank, who spoke on condition of anonymity,
said creditors also are scheduled to sign an agreement of
formal approval to the restructuring plan Aug. 4.

The banker added that he expects the entire debt-
restructuring plan for both Guangdong Investment and
Guangdong Enterprises to be implemented by the end of
August.The meeting lasted for two hours as the financial
consultants to the debt- restructuring plan "had to justify
the amount of fees" they charged for their services, said a
banker.

KPMG Peat Marwick and Goldman Sachs & Co. are the financial
advisers on the debt-restructuring plan. Guangdong
Investment is the listed flagship of Guangdong Enterprises,
an investment and development company owned by the
Guangdong provincial government in southern China.

Guangdong Enterprises defaulted on about $3.5 billion in
foreign and domestic debts in 1998 because of financial
mismanagement and granting of loans based on connections
rather than commercial reasons.  (The Asian Wall Street
Journal  10-July-2000)

HAINAN INT'L TRUST & INVESTMENT: Default on loan feared
-------------------------------------------------------
Fears that a Chinese investment trust might default on a
loan from Japanese investors arose after it failed to make
an interest payment by the close of business Monday,
underwriting sources here said.

Hainan International Trust & Investment Corp., which is
owned by the government of Hainan Province, appeared set to
default on an interest payment to holders of its 14.5
billion yen ($134.9 million) Samurai bonds, which came due
June 26. Samurai bonds are yen-denominated bonds sold by
foreign governments or companies to Japanese investors.

Failure to pay within 14 days after that date - by Monday -
would mean that the loan was in default, they said. No
payment had been received by the close of business, though
an official close to the deal said the Japanese payment
agent was prepared to wait until midnight.

The incident is bound to stir up old fears about the
credibility of China's financial institutions, still in the
shadow cast by Guangdong International Trust & Investment
Corp., known as GITIC, which filed for bankruptcy in
January 1999 with $4.7 billion of debt.

"Investors still haven't received the payment from HITIC,"
a market source close to the deal said, adding: "Under the
terms, the bond will be considered in default. Even if the
money is received by the payment agency, it cannot be
delivered to holders of the bond by the end of the day."

The lead trustee, or payment agent, Shinsei Bank Ltd.,
formerly called the Long-Term Credit Bank of Japan,
declined comment. Chinese officials and the central bank
also declined to comment.  (The International Herald
Tribune  11-July-2000)

HIKARI TSUSHIN INT'L LTD.: Posts wider net loss
-----------------------------------------------
Hikari Tsushin International Ltd. reported that its net
loss widened to HK$114.4 million (US$14.7 million) for the
year ended March 31, up from HK$46.4 million a year
earlier.

The company said the poor results, which were released
Friday, are a result of increased expenses arising from a
trnsformation of its business, including a write-off of the
value of certain inactivr inventories, moulds, plants and
machinery.  The write-off of certain leasehold lands in
China and preoperation expenses related to the adoption of
new Hong Kong accounting practices also hurt profit. (The
Asian Wall Street Journal  10-July-2000)

S.MEGGA INT'L HLDGS.: HKSE told of debt-rehab progress
------------------------------------------------------
The board of S. Megga International Holdings Limited has
reported to the Hong Kong Stock Exchange that the proposed
debt restructuring and APE acquisition have been
unanimously approved by Shareholders.

The Board is pleased to announce that the resolutions on
the Debt Restructuring, the APE acquisition, capital
reduction, sub-division of unissued share capital,
amendment to share option scheme and change of company name
have been unanimously passed in the special general meeting
of the Company held today. Terms used herein have the same
meanings as contained in the Circular.

It is expected that the Modified Debt Restructuring
Agreement will be signed prior to the Noteholders meeting
which is to be held on 21st July, 2000 (Geneva time). An
announcement will be made upon signing. (Hong Kong Stock
Exchange  10-July-2000)


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

KIM JOHANES: 2 foreign firms file bankruptcy suit vs. it
--------------------------------------------------------
Japanese owned Irie Lumber Pte Limited and Century Wood
Product Pte Ltd of Singapore have filed a bankruptcy
lawsuit against businessman Kim Johanes for failure to
service matured debts worth 1.2 mln usd.

The two companies also filed a bankruptcy suit against
Kim's business associate Adi Gunawan.  The lawyer
representing the two firms, Salomo Damanik Rachmaihut
Damanik of the Maraja & Partners law firm, said in a
document obtained by AFX-Asia that the debts were owed by
Polwood Forest Industri and PT Polyub Swadaya Utama.

Both Johanes and Gunawan were acting as personal guarantors
for the debts of the two Indonesian companies, the document
said.  (AFX News Limited  11-July-2000)

PT BAKRIE: Debt revamp plan seen getting nod in August
------------------------------------------------------
Creditors of PT Bakrie and Brothers, one of Indonesia's
biggest non-ethnic-Chinese business groups, are set to
approve a plan to restructure US$1.06 billion (S$1.8
billion) of debt before the end of August.

More than three quarters of Bakrie's creditors approved an
outline of the proposal in a vote last month, said Neil
Taylor, director of global emerging markets at Westdeutsche
Landesbank, who is on the creditors' steering committee.
Creditors are now looking at details of final plan, which
will get the support of the Jakarta commercial court if
they accept it.

"I expect those that voted in favour (last month) will
approve the final plan," Mr Taylor said.

Restructuring the debt would help the Bakrie Group reduce
its total debt of US$2.5 billion and would be among
Indonesia's largest debt-to-equity swaps since an 80 per
cent decline in the rupiah during the Asian financial
crisis of 1997 and 1998 made it difficult for companies to
repay foreign debt.

The plan would give creditors 95 per cent of the company
and stakes in five units, including publicly traded PT
Bakrie Sumatera Plantations and bankrupt satellite firm
Iridium LLC. A total of 36.8 billion new shares would be
issued to creditors.

The Bakrie group owes the Indonesian Bank Restructuring
Agency 4.9 trillion rupiah (S$916.3 million), making it the
agency's fourth-largest debtor. Other major creditors are
Chase Manhattan Corp, American Express Bank Ltd, and West
LB.

As creditors read the fine print, the Jakarta Initiative
Task Force, which helps debtors and creditors reschedule
non-performing loans, is busy ensuring that the Bakrie
proposal complies with Indonesian law, said Edward Gustely,
the task force's senior manager.

This will lay the foundation of a "composition plan", which
will help the court bind dissenters to the proposal,
provided the majority outcome in the June vote stays
intact, Mr Gustely said. "We're doing a lot of the heavy
lifting for the court."

Legal obstacles include tax breaks for asset transfers
conducted to forgive bad loans, though former task force
chief, Laksamana Sukardi, said in April the government was
willing to allow these. Another issue is how long domestic
banks can hold stakes in assets in the Bakrie & Brothers
Group.  The Jakarta task force hopes to have the
composition plan sent to the Jakarta commercial court by
the end of this month, although the process might run into
August, said Mr Gustely. (The Business Times  11-July-2000)


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

NAGASAKIYA CO.: Files for court protection
------------------------------------------
Nagasakiya Co. has reported that it has filed for
protection from creditors with the Kyoto district court.

A Kyoto-based food company, Nagasakiya Co. was showing
10.75 billion yen (US$ 99.6 million) in liabilities as of
the end of May. The company has been unsuccessful in
obtaining funding to redeem 500 million yen worth of bonds
that mature early next month. The confectioner also has
been unsuccessful in liquidating plants in Shiga and other
prefectures.  Nagasakiya says it will continue operating
its own stores and shops in department stores.

Sales for the company declined from a peak of 16.4 billion
yen in the year ended Sept. 30, 1991 to a net 184 million
yen loss for the year ended September 1999. The company has
suffered five consecutive losing years. Consequently, its
liabilities exceed its assets by some 2.6 billion yen as of
last September.

Members of the board of directors and company president
Yasuyuki Yoshioka resigned their posts on Sunday. Yoshioka
reported that the company will continue negotiating with
companies,including foreign ones, for funds and other
support.

NISSAN MOTOR: In talks to sell 20 affiliates
--------------------------------------------
Nissan Motor reports that it is in talks to sell as many as
20 of its main industrial affiliates only one day after
selling its controlling interest in Japan's largest car
seat manufacturer.

Japan's third-largest automaker and an affiliate of
France's Renault, Nissan intends to trim its holdings in
more than 300 companies down to only four by the end of
March 2003, according to Nissan's manager of investor
relations Gerry Spahn. Only Sunday, Johnson Controls, the
world's second-largest maker of vehicle seats and
interiors, announced it would buy all of Ikeda Bussan --
including Nissan's 38 percent share.

Nissan's sales are attracting interest by foreign buyers.
The sale of its Ikeda Bussan stake prompted investors to
buy shares in other Nissan parts suppliers, including
Calsonic Kansei and Tennex, speculating they might be next
to be auctioned off.  Nissan holds about a third of
Calsonic and has been discussing a possible sale with
several companies, including Delphi Automotive Systems, the
world's largest auto-parts maker.

Spahn confirmed that sale of Nissan's stakes in suppliers
was part of the company's revival plan to cut the cost of
components by an average of 20 percent. It's also
calculated to cut costs by increasing competition among
suppliers and prodding them to become more international.
The shift comes as Nissan is reducing the number of basic
platforms it uses to build cars, increasing the size of any
parts order.

Overall, Nissan's cost-cutting plan is calculated to return
the vehicle manufacturer to a profitable status. In May,
Nissan reporting posting a 684 billion yen loss.

SOGO CO.: To ask former chairman to help cover debt
---------------------------------------------------
Sogo Co said it will ask former chairman Hiroo Mizushimato
to donate his personal assets to help cover the company's
huge debt.

"We will work for an early settlement of the matter related
to our request for former chairman Mizushimato's donation
of his personal assets," Sogo said in a statement.

Mizushima, who was Sogo's president in 1962 and chairman in
1994, led an expansion strategy which caused the company to
incur 1.7 trln yen in debt, the company said.  He resigned
as Sogo's chairman on April 26. Sogo will also set up a
committee of outside experts to assess management's
responsibility over its current situation, it added.

"We will set up an independent committee (on this)
investigation comprising several outside experts such as
lawyers and certified accountants, " Sogo said. "The
purpose of the committee is to clarify responsibility of
our company 's executives in terms of their violations of
internal rules and to investigate whether they violated
civil and criminal laws."  (AFX News Limited  10-July-2000)


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

LAND & GENERAL BHD: Some units miss loan payments
-------------------------------------------------
Land & General Bhd said it and some of its units have been
unable to meet interest and principal repayments for credit
facilities but no letter of demand has been issued by
banking institutions so far.

It said in a statement to the KLSE that a debt
restructuring proposal was forwarded to the respective
lenders in September last year and the parties are
currently negotiating the terms of the restructuring.

"Land & General is confident that the negotiations on the
debt restructuring proposal with the bank lenders will be
successful, thereby avoiding any legal proceedings," it
added.

Land & General said it had received the Securities
Commission's conditional approval to issue up to 58.152
million new shares to certain contractors and consultants
of its units Bandar Sungai Buaya Sdn Bhd, Lembah Beringin
Sdn Bhd and Sri Damansara Sdn Bhd.  (AFX, Star Online  11-
July-2000)

TIME dotCOM: Gov't to take key stake
------------------------------------
The government is buying a key stake in the soon-to-be-
listed telecoms unit of Time Engineering, offering a
lifeline to the cash-starved Malaysian firm.

Time said yesterday it would sell a 30 per cent stake in
its telecoms unit Time dotCom to state investment arm
Khazanah Nasional, two days before a crucial creditors
meeting.  However, sector analysts said the Khazanah deal
was seen as inferior to the aborted sale in May of stakes
in Time and two of its units to Singapore
Telecommunications (SingTel).

Anis ur-Rahman, regional telecoms analyst at SG Securities
in Singapore, said that, although the deal with Khazanah
was not as good as the SingTel deal, investors believed
Khazanah would eventually try to find a foreign strategic
partner with solid expertise in the industry.  Time was due
to detail the Khazanah deal late last night.

Newspapers yesterday said Khazanah had signed a deal on
Saturday to buy a 29.99 per cent stake in Time's telecoms
unit for M$2.2 billion (about HK$4.51 billion) or M$3 per
Time dotCom share.  SingTel had valued Time dotCom at
M$3.30 a share under under its offer.

The announcement boosted shares of Malaysian telecoms as
investors bought on expectations of improved prospects for
the financially strapped sector.  Time shares were
suspended yesterday ahead of the official announcement by
the company. They closed on Friday at M$3.76 but Time's
parent, conglomerate Renong, hit a three-week high of
M$2.12, up 32 cents.  Other telecoms companies jumped on
the Khazanah deal.

"The Time news shows the government is serious about
getting rid of the debts of the telecoms sector and put it
on a stronger footing," a local telecoms analyst said.

Technology Resources Industries (TRI), the country's
largest mobile operator, closed 14 cents higher at M$4.54,
its highest level in about six weeks.  TRI is expected to
complete an agreement with bondholders shortly, after it
defaulted late last year on premium payments on US$375
million eurobonds due in 2004.

Telecommunications equipment maker the Sapura Group and
associate Uniphone Telecommunications rose about 14 per
cent each. Uniphone said last week it was in preliminary
talks with Khazanah to take a stake in Time dotCom, which
is to be listed in October.  The Khazanah deal is part of
Time's M$5 billion debt restructuring plan which creditors
will have to approve at a meeting tomorrow if the overall
plan is to go through. Time is one of Malaysia's single
largest corporate debtors.

"Certainly this is the reassurance that investors need for
the virtual cycle to begin. It certainly is a bailout but
without it they are not going to be able to move onto the
next step," a foreign analyst in Kuala Lumpur said of the
Time-Khazanah deal.

Malaysian market regulator the Securities Commission last
week approved the listing of Time dotCom on the condition
that it found a strategic partner with the right
capabilities.  (South China Morning Post  11-July-2000)


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

ASB GROUP: Ayala, two others eye assets
---------------------------------------
Three of the country's biggest property companies are
interested in acquiring the assets of bankrupt ASB Group of
Companies -- which filed for rehabilitation and the
suspension of payments of its P10-billion debts last May 3
-- particularly its unfinished projects in Ortigas and in
Makati, sources told The STAR over the weekend.

The three are Ayala Land Inc., Robinson's Land Corp., and
Century Properties. These firms, they said, have looked at
these properties and made some inquiries. Sources, though,
could not say if a deal has already been sealed with any of
these companies or if there were already initial
negotiations for the sale.

"There are many groups that are looking into ASB,
especially its unfinished projects," sources said. Major
players in the property market like Megaworld, RLC, Century
and even the Ayalas have looked into it. There were still
others who made some 'look see.' But we don't know what
happens afterwards."

These projects include ASB's twin towers (BSA Twin Tower)
in St. Francis Square in Ortigas and two condominium and
office buildings in Makati.  However, these firms are
interested to buy these properties at a discount of 30
percent to 40 percent of the price list.

The huge discount, sources said would cover the risks that
these companies would assume in taking over these
unfinished projects. These risks include market risk,
financial risk, and quality risk. They said the buyers
would have to assume all the debts incurred in doing these
projects as well as the so-called "carry on cost."

"To cover these risks, they want to acquire it at a steep
discount," sources said.

Century Properties, sources said, has made an offer to buy
all ASB assets at 50 percent discount. However, ASB has
declined this offer, they said. This was, however, denied
by Century Properties president Jose Antonio.

ASB has appointed auditing firm SGV as the financial
advisor. On the other hand, Fortune Cruz, former partner of
PriceWaterhouse, is the receiver. Sources said SGV has
created a sinking fund where proceeds of the sale of the
assets would go. It would then be used to pay for the debts
on a pro-rata basis.

The ASB group, owned by businessman Luke Roxas, filed for
suspension of debt payments and rehabilitation with the
Securities and Exchange Commission last May 3. It has debts
estimated at P8 billion to P10 billion.  It is composed of
ASB Holding Inc., ASB Land, ASB Development Corp., ASB
Realty Corp., and its allied firms Makati Hope Christain
School, Bel Air Holdings, Winchester Trading, Neighborhood
Holdings, among others.

Its major creditors have protested its rehabilitation plan
and criticized the firm for allegedly overstating its
assets to make it appear it could pay its debts. These
creditors include United Coconut Planters Bank, Philippine
National Bank, Metropolitan Bank & Trust Co., Rizal
Commercial Banking Corp., Prudential Bank and Union Bank.
(Philippine Star  10-July-2000)

ATLAS CONSOL.MINING & DEVEL.: Disclosure deadline extended
BHI HOLDINGS:  Disclosure deadline extended
C & P HOMES Inc.: Disclosure deadline extended
MEDCO HOLDINGS: Disclosure deadline extended
PHILIPPINE NAT.CONSTRUC.CORP.: Disclosure deadline extended
WELLEX INDUSTRIES: Disclosure deadline extended
ZIPPORAH REALTY HLDGS.: Disclosure deadline extended
-----------------------------------------------------------
Seven firms escaped possible suspension of trading
yesterday after the Philippine Stock Exchange (PSE) agreed
to extend the deadline for the submission of reportorial
requirements for another 10 trading days.

The local bourse, however, said it will finally suspend
trading of shares of the seven companies on July 24 should
they fail to submit their annual financial statements and
pay corresponding fines.

"The above extension is being given by the Exchange for
valid reasons. The same should not be taken as a precedent
for future violations," PSE president Ramon T. Garcia said
in a memorandum.

The companies are C&P Homes, Inc., Wellex Industries, Inc.,
Zipporah Realty Holdings, Philippine National Construction
Corp., Atlas Consolidated Mining & Development Corp., BHI
Holdings, Inc. and Medco Holdings, Inc.

Villar-owned C&P has repeatedly failed to submit its annual
report and quarterly financial statements since the company
suffered financial difficulty in 1997. This time, the stock
exchange has threatened to suspend C&Pøs trading for
failure to submit its 1999 annual report as well as its
quarterly report for the quarter ended March 31, 2000.

In a letter to the PSE, the listed housing developer said
its external auditor is still in the process of verifying
certain audit schedules, analyses of accounts, documents
and other audit requirements.

Government-owned PNCC, on the other hand, said the
Commission on Audit has yet to complete the regular audit
of the company's financial statements for the fiscal year
ended December 31, 1999.

For its part, dormant mining firm Atlas Consolidated cited
the closure of its mine site in Toledo, Cebu as the primary
reason for failure of the management to meet its
reportorial requirements.

Members of the restless labor union have had on various
opportunity caused unnecessary obstruction in the ingress
and egress of employees not inclined to join them. This
persistent labor action coupled with several other
unwarranted labor demands not only increased in occurrence
during the past several months but induced some sector, who
are generally unperturbed, to take their cudgel.

These actions not only caused the delay in the submission
of the required reports but also incurred unwanted expenses
that could have been put to better use, the company said in
its letter to the PSE dated July 6. Gatchalian-owned Wellex
Industries, meanwhile, said it has already paid the basic
and daily fines for failure to submit its annual report for
the fiscal year ended December 31, 1999.

The company also disclosed that the management has
appointed accounting firm Alba Romeo & Co. as external
auditors to work on its December 31, 1999 financial audit
after the resignation of Punongbayan and Araullo. (Business
World  10-July-2000)

NATIONAL STEEL CORP.: Gov't to allow dilution of stake
------------------------------------------------------
The government will allow a dilution in its remaining 12.5
percent stake in National Steel Corp to step up efforts to
rehabilitate the steel firm, Trade and Industry Secretary
Manuel Roxas II said.

"Assuming fairness in valuation, we will not object to any
dilution in our ownership position. We have no choice, our
primary position is to enable any effort for its
reopening," Roxas said.

The government, through National Development Corp,
attempted to bid out its 12 pct stake, hoping to raise 1.2
bln pesos, but there was no taker. National Steel ceased
operations last November.  (AFX News Limited  10-July-2000)

PHILIPPINE NAT.BANK: Three vie for stake
----------------------------------------
Three buyers are vying to acquire 30 per cent of Philippine
National Bank (PNB), said the government, which is trying
to sell the stake again to help finance a budget deficit.

The Philippines will auction off the PNB stake on July 19,
hoping to use the proceeds to plug this year's 62.5 billion
pesos (HK$11.0 billion) budget deficit. The stake is worth
3.5 billion pesos based on Friday's closing stock price.
PNB is the nation's fourth-largest lender by assets. Last
month, the government scrapped an even bigger stake sale -
80 per cent of PNB - because only one buyer qualified.

The stake included shares from businessman Lucio Tan and
the banks retirement fund. Mr Tan, who controls 46 per cent
of the lender, may be in contention to buy more shares.

"Three groups have expressed interest for PNB," Finance
Secretary Jose Pardo said.

Aside from a group led by Filipina entrepreneur Loida
Nicolas Lewis, who failed to qualify in the first sale, Mr
Pardo said an investment bank and another group has
expressed interest in the second auction. The sale will
proceed even if only one bidder shows up as long as they
can pay a 600 million pesos down payment, Mr Pardo said.
(Hong Kong iMail  10-July-2000)

URBAN BANK: Petron, Meralco reject debt-equity swaps
----------------------------------------------------
Manila Electric Co. and Petron Corp. said yesterday they
were not willing to convert their deposits in failed Urban
Bank Inc. into equity as part of the bank's rehabilitation.

"We are still in discussion and we are not considering
equity conversion," Meralco chief finance officer Daniel
Tagaza said in a letter to the stock exchange.

The two companies' statements to the Philippine Stock
Exchange came after Bank of Commerce won the rights to buy
the failed lender.  Bank of Commerce wants corporate
depositors owed the most by Urban Bank to accept equity
instead of the funds themselves.  San Miguel Corp., a
brewer, has already said it is undecided on whether to
agree to the debt-for-equity plan.

Meralco officials said they were not considering the
proposal while Petron said the arrangement was still being
discussed and that no agreement had been signed.
It is unclear whether Bank of Commerce requires the three
companies' agreement to proceed with the purchase.  A
combined P750 million in deposits from Meralco, Petron and
San Miguel would be converted into equity in the bank,
Finance Secretary Jose Pardo said last week.

The medium-sized Urban Bank declared a bank holiday due to
massive withdrawals in April and was later ordered closed
by the Bangko Sentral ng Pilipinas on April 26.  On
Thursday, the central bank approved a proposal to
rehabilitate Urban Bank. The rehabilitation plan, however,
has yet to be approved by bank depositors, investors and
creditors.

Pardo said the plan called for P1.65 billion in fresh
equity, the bulk, or P600 million, of which would come from
part owner, state pension fund Social Security System.
Big depositors would convert P750 million into equity while
unlisted Bank of Commerce would infuse P300 million in
Urban, Pardo said.

Urban Bank, slated to re-open on Sept. 4, is expected to
merge with Bank of Commerce. Shares of the bank were last
traded on April 26, when it closed at P72. (Philippine
Daily Inquirer  11-July-2000)


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

ACMA LTD: Refocusing-spinning off or closing subsidiaries
---------------------------------------------------------
Acma Ltd, a diversified listed company with business
running from restaurants to refrigerators, is switching
wholesale from the Old to the New Economy.

"Eventually we will be a purely Internet company," its
chairman S P Quek told BT recently in an interview.

In the next two years, all of Acma's non-Internet
subsidiaries, unless they are converted into Internet
businesses, will be spun off through separate listings,
sold or closed down, he said.  Mr Quek declined to go into
details. Acma will gradually dilute its stakes in those
which are listed, he added.

Acma owns more than 20 subsidiaries around the world,
including Russia, China, Australia, New Zealand, Malaysia,
Mexico and Singapore. They are involved in varied
industries such as engineering, plastics, restaurants,
airconditioners and refridgerators.

On the move into the New Economy, the silver-haired,
middle-aged businessman said: "I started using the Net in
June last year. It took me three months to realise the huge
potential of the Net. After intense discussions with other
executive directors, we concluded we had to go on the Net
to enhance shareholders' value."

So last November Acma bought a property portal,
Propertybuyer.com, which was its first Internet business
and one of Singapore's first property portals. Its other
Internet businesses followed quickly. Now, Acma owns six
Internet units -- Russianscientists.com, Propertybuyer.com,
Acmabooks, Conduit, Wiredhub and Netlearner.  Acma plans to
list at least two of these Internet subsidiaries in 12
months, said Mr Quek.

"We want to list as many dotcoms as we can. After that, we
will buy or start a few more Internet companies." Acma's
policy is to own controlling stakes in all its Net
businesses, he said.

Mr Quek hopes that in several years, the combined market
capitalisation of Acma's listed Internet subsidiaries will
be worth a lot more than Acma's present market cap.
Acma's market cap has declined from about $900 million in
1993 to $200 million today, due to some failed investments.
For example, in the mid-1990s Acma invested US$20 million
in Hayes, a US modem maker, but that investment turned
sour.

"There is no point having a company (Acma) with $544
million annual revenues if its market cap is only $200
million," he said.

Although many dotcoms are doing poorly on the stockmarket,
Mr Quek was confident Acma's Internet subsidiaries will do
well. For one, Acma will ensure that most of its Internet
companies reach profitability in the first or second year
of operations, he said.

Also, some of Acma's Internet subsidiaries have good
revenue potential. He cited Conduit, which is listed in New
Zealand. Conduit's online sales of IT goods will jump 10-
fold from NZ$6 million last year to NZ$60 million this
year, and it is already profitable, he said.

However, there are a few Internet subsidiaries that will
still lose money in the near term, Mr Quek admitted. Acma
is looking to merge Propertybuyer.com with other companies,
he said.

"There are over 20 property portals in Singapore. In the
end, only two or three can survive."

Acma's online bookstore, Acmabooks, too, will be in the red
till the end of next year, he said. Acma is using Acmabooks
to build an online community of booklovers, to which it can
sell other goods and services over the Net later on, he
said.  As Acma transforms into an Internet company, it will
become leaner, said Mr Quek.

Presently, Acma has 9,000 employees, mostly factory
workers. "In the next few years, we will definitely have
fewer people," he said.  (Business Times 12-July-2000)


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

AROMATICS THAILAND PLC: Approval sought for rehab plan
THAI OLEFINS CO.: Approval sought for rehab plan
------------------------------------------------------
The Industry Ministry will seek cabinet approval today of
plans to restructure debts totalling US$730 million owed by
two affiliates of the Petroleum Authority of Thailand
(PTT).

Industry Minister Suwat Liptapallop said the two companies
were Thai Olefins Co (TOC) and Aromatics Thailand Plc
(ATC). TOC owed its creditors $328 million and ATC owed
about $402 million.

Under the debt restructuring plans, the PTT, which holds a
49% stake in TOC, would provide $100 million as a credit
guarantee for the company's purchase of raw materials.
TOC's creditors, led by Bangkok Bank, Chase Manhattan and
Industrial Bank of Japan, would agree to extend the loan
repayment period to seven years from five years, with a
two-year grace period.

TOC would switch to natural gas instead of crude oil to cut
its production costs.  ATC's creditors, led by US Exim
Bank, Japan Exim Bank and Sanwa Bank, would agree to extend
a new loan of $200 million to the company at an interest
rate up to or matching the minimum lending rate.

The repayment period for its existing loans would be
extended to nine years from seven years, with a two-year
grace period.  The new loan would be used to repay funds
borrowed from the Korea Exim Bank which refused to join the
restructuring scheme.  The company's share price closed
yesterday at 5.30 baht, down 0.30 baht.

PTT, meanwhile, would provide a total of $50 million as
working capital for the two affiliates. PTT also agreed to
revive another of its affiliates, Thai Paraxylene, by
acquiring the company's preferred shares for $41 million,
while another shareholder, Nippon Mitsubishi Oil, would
acquire shares worth $44 million. The plan would raise the
company's capital to $130 million from $45 million.
(Bangkok Post  11-July-2000)

THAI PETROCHEM.INDUS.: Debt plan sumission by month-end
-------------------------------------------------------
Thai Petrochemical Industry's rehabilitation plan will be
submitted to the Official Receiver at the end of the month
for circulation to all creditors, the court-approved
rehabilitation planner confirmed yesterday.

Anthony Norman, managing director of Effective Planners, a
wholly-owned subsidiary of accounting, restructuring and
recovery firm Ferrier Hodgson, said the rehabilitation plan
was proceeding according to schedule with full cooperation
of all parties.

Recently completed cashflow forecasts were in line with the
previous five-year plan, agreed in February last year.
Internal and external cashflows of approximately US$750
million (Bt29.81 billion) each, totalling $1.5 billion,
were earmarked to achieve debt reduction.

Norman said nearly 20 parties were interested in investing
in or acquiring various assets of TPI. Approximately half
of these had expressed interest in arranging equity
investors for TPI as a whole.

The remainder had showed interest in specific TPI
businesses.  Regarding these expressions of interest,
Effective Planners is presently focused on establishing
which parts of TPI's business could be divested, wholly or
in part, without disturbing the benefits of operational
integration or the strategic integration and positioning of
TPI.

"Clearly, if the amount of new money required is large, a
more aggressive divestment strategy must be embraced," said
Norman. "Currently we do not envision such ascenario, but
this comprehensive review is an essential part of the
consideration of options in any restructuring."

Dr Sippanondha Ketudat, former Minister of Industry who is
chairman of Effective Planners' board, pointed out the need
to reduce debt levels to standard industry norms within a
realistic timeframe.

"Projected debt-free status may offer an emotional appeal
but is not suitable for many companies, and certainly not
for those in the capital intensive petrochemicals industry.
TPI will have to spend millions of dollars annually to
maintain and modernise its facilities and ensure that
quality fire-fighting, safety maintenance, and pollution
control equipment is installed and working efficiently,"
Sippanondha said.

Sippanondha said embracing the rights of financial and
trade creditors to receive principal and interest loan
payments was paramount, but not to the extent of cutting
off essential capital expenditure. Modest, prudently
managed debt levels were an industry norm.

Effective Planners' operational, engineering, and
petrochemical experts are continuing to work together with
TPI staff on improvements to the company's production
planning, feedstock acquisition and marketing distribution
systems.

In applying these and other models and sophisticated
forecasting techniques, Effective Planner has determined
that production of approximately 125,000 barrels per day
would produce the highest return, based on current market
conditions. Production beyond this level would incur
negative marginal returns, due to the production of excess
refined products such as fuel oil and diesel.

TPI's new refinery, to be completed by the end of September
and commissioned one month later, is expected to be able to
initially produce this amount if running at optimal level.
(The Nation  11-July-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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