/raid1/www/Hosts/bankrupt/TCRAP_Public/000718.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

             Tuesday, July 18, 2000, Vol. 3, No. 138

                                   Headlines


* A U S T R A L I A *

LEND LEASE CORP: Proposes buyback/$1.8B return to s'holders
LIBERTYONE: Staggered by loss of Zivo founder
ORICA: Pipeline sale proceeds to reduce debt
SAUSAGE SOFTWARE: Shares fall on Telstra dumping rumors
SOLUTION 6 HLDGS.: Shares fall on Telstra dumping rumors
SPIKE NETWORKS: Expects $27M full-year losses
SUPERSHUTTLE: Head company goes into voluntary liquidation


* C H I N A  &  H O N G  K O N G *

APPLEDAILY.COM.HK: Job cutbacks to cut costs
NEXTMEDIA.COM: Job cutbacks to cut costs
SHANDONG XINHUA: Tells creditors to buy back H shares
WANG KAO CARGO (SERVICES) LTD: Facing winding up petition
WELL CREATE INT'L LTD: Facing winding up petition
WINART INT'L DEVELOP.LTD: Facing winding up petition


* I N D O N E S I A *

PT ASTRA INT'L: Debt plan in jeopardy
PT BAKRIE SUMATERA: Meets with creditors on restructure
PT BANK BALI: Indonesia central bank to acquire
PT BARITO PACIFIC TIMBER: Debt plan in jeopardy
PT LANDASAN TERUSAN SENTOSA: To seek payment suspension
PT PERKEBUNAN NUSANTARA IV: Debt plan in jeopardy
PT SATELINDO: Debt plan in jeopardy
PT TAMBANG BATUBARA BUKIT ASAM: Debt plan in jeopardy


* J A P A N *

DAIEI: Could be the next bankrupt company?
HIKARI TSUSHIN INC: CyberWorks to the resuce?
SEIYO CORP: Saison Group files for it liquidation
SOGO CO.: May sell Hong Kong store


* K O R E A *

DONG-AH CONSTRUCTION: Creditors reject former exec
HYUNDAI MOTORS: Spinoff plan enters critical stage


* M A L A Y S I A *

IDRIS HYDRAULICS: Proposed rehab plan details unveiled
NALURI BHD: To sell part of its Malaysian Air stake


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

AT DE CASTRO SECURITIES CORP.: Named in BW fraud report
C & P HOMES: Creditors threaten debt talks pull-out
LUCIO CO.: Named in BW fraud report
MAYBANK PHILS.INC.: Expects net losses this year
PCCI SECURITIES BROKERS CORP.: Named in BW fraud report
REYNOLDS PHILS.: Gets week extension to craft explanation
URBAN BANK : SMC, Petron, Meralco OK rehab plan


* S I N G A P O R E *

POLWOOD FOREST INDUSTRI: Faces lawsuit for unpaid debt
PT POLYUB SWADAYA UTAMA: Faces lawsuit for unpaid debt


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

LEND LEASE CORP: Proposes buyback/$1.8B return to s'holders
-----------------------------------------------------------
Lend Lease Corp is proposing that it returns $1.8 billion
to shareholders, to be effected through an off-market share
buyback.

The move follows Lend Lease's sale of MLC to National
Australia Bank and Lend Lease proposes to return a
significant part of the proceeds of the sale of MLC to
shareholders.  A meeting of shareholders is to be held on
August 18, which will consider a resolution to give the
company the ability to buy back up to 25 per cent of its
shares within a period of 12 months.

The approval being sought will also encompass the
flexibility to do further buybacks if necessary or
desirable, Lend Lease said in a letter outlining details of
the shareholder meeting.  The company said that it is in a
strong position to take advantage of global investment
opportunities.

"However, given the uncertainties as to the working through
of the buyback, and of the timing and quantum of
reinvestments, it is simply impractical to have an earnings
per share target at present," Lend Lease said.

Lend Lease noted that its businesses continue to perform
soundly with the previously announced exception of Fox
Studios Australia joint venture "and we remain optimistic
about their growth potential over the longer term. There is
significant opportunity in fully integrating the three real
estate businesses globally - funds management, project
management and property development."

Lend Lease also said that its dividend policy is being
reviewed given the increasing percentage of earnings coming
from offshore and changes to the Australian tax regime such
as the reduction in capital gains tax.  However, any
changes to dividend policy will not affect the dividend to
be paid in September 2000, the company said.

On the off-market buyback, Lend Lease said it would provide
choice and equal access for all shareholders and will
provide Lend Lease with a more efficient capital structure.
Lend Lease said that the price at which it would buyback
the shares will be referable to the market price for Lend
Lease shares at the time of the buyback.

The price offered will have two components - a fully
franked dividend and a capital component. Lend Lease said
this approach has been confirmed in advance with the
Australian Tax Office.  If shareholders approve the
resolution, the buyback will open around September 6 and
close September 29.

Shareholders will have flexibility to chose to offer to
sell to the company some or all of their holding, or to
keep their shares.  Lend Lease completed the sale to
National Australia Bank its financial services business,
including MLC, on June 30 for $4.6 billion.

Lend Lease noted that the sale will add around $1.2 billion
to its available cash, even after the proposed $1.8 billion
return to shareholders and after Lend Lease repays around
$1.0 billion of debt.

"Also the strength of the group's balance sheet will enable
ready access to additional sources of finance if the group
identifies attractive opportunities," it said.

Lend Lease noted that it may need to review its previously
stated objective of 10 per cent earnings per share growth.
This will be reported on at the Annual general meeting
later this year. (Australia Financial Review  17-July-2000)

LIBERTYONE: Staggered by loss of Zivo founder
---------------------------------------------
Troubled Internet investor LibertyOne yesterday lurched
into another crisis, losing the founder of its Zivo web
integration business, Jeff Lewis.

Zivo will be managed by LibertyOne general manager of
strategic investments Marcelle Anderson as it faces
increased competition from global players entering the
Asian market.  As many as five international competitors
would be coming to the Asia Pacific in the next six months
including US Web and Organic, analysts said.

Online advertising is expected to reach $US800 million
($1.3 billion) by 2002, with Japan making $US610 million of
that figure, according to e-Stats.  LibertyOne's shares
fell another 1c to 32c.

"I am starting a new business which is completely unrelated
to Zivo," Mr Lewis told The Australian yesterday.  "My
departure was absolutely amicable and I have a good
relationship with board and management.  So much depends on
attracting good people. The market size is growing faster
than the competition can grow.  Zivo regularly goes head to
head with big US companies and wins."

Analysts said Mr Lewis would be difficult to replace.
"He is an engineer, but he's creative and very good at
selling," one person close to the company said.  Zivo would
continue to attempt to position itself as the region's pre-
eminent web integration and consulting business, Ms
Anderson said.

"Zivo is at a critical point. It needs to have a clear view
of where it is going and is actively looking at
opportunities in North Asia," she said.  "We are one of the
leading players and we fully intend to stay there. We are
looking for strategic alliances in the region."

Ms Anderson, 51, who was formerly involved in corporate and
communication policy for the NRMA and the NSW Government,
will run Zivo until a new chief executive is found.

"We haven't officially begun the process of looking for a
new CEO but we already have got applications," she said.
"There's a high level of staff mobility in this industry."

Mr Lewis effectively built Zivo to its present position
with 250 web specialists in Asia and Australia. On March
23, 1999 LibertyOne acquired Zivo, which was created in
June 1998 Zivo from a merger between Mr Lewis's MNI
Technology and Clemenger Interactive - run by Martin
Lindstrom, who is now chief operating officer of BT
LookSmart.

Mr Lindstrom refused to comment on his relationship with Mr
Lewis. He said Zivo had reached a level where it was solid
but would still face tough competition. "Small garage
companies that have built up over the last two years are
going to die now," he said.  (The Australian  13-July-2000)

ORICA: Pipeline sale proceeds to reduce debt
--------------------------------------------
Australia's biggest chemical company, Orica, says it will
reduce debt levels, following the sale of its Moomba to
Sydney gas pipeline.

The former ICI Australia has today announced the completion
of the sale for around $124 million.  Commissioned in 1996,
the 1,375 kilometre pipeline transports ethane from South
Australia's Moomba gas fields to an Orica plant at Botany.
The pipeline has been bought by Qenos, a joint venture
between UniSuper, National Australia Asset Management and
John Lang Investments. (ABC News Online  17-July-2000)

SAUSAGE SOFTWARE: Shares fall on Telstra dumping rumors
SOLUTION 6 HLDGS.: Shares fall on Telstra dumping rumors
--------------------------------------------------------
The shares of Internet groups Sausage Software Ltd and
Solution 6 Holdings Ltd both took a dive yesterday amid
concern Telstra Corp might dump its shares in the
companies.

Shares in Sausage dropped 16.6c, or 5.4 per cent, to
$2.914, while Solution 6 shed 8.6c, or 2.3 per cent, to
$3.624 after earlier dropping as low as $3.47.

Telstra ended a partnership with registry software
developer Computershare Ltd on Thursday, ditching a 10 per
cent stake and vowing to sell its remaining 5 per cent.
Telstra said there was no motive behind the divestment
other than the fact it was a good time to realise a profit
on a passive investment.

At the same time it reaffirmed its commitment to both
Solution 6 and Sausage, however.  Even so, it has raised
concern the telecommunications giant might have similar
intentions for its other on-line investments down the
track.

Like its divestment of Computershare stock, a sale of
Telstra's 5 per cent stake in Sausage and its 24 per cent
of Solution 6 would flood the market with shares, leaving a
likely overhang and sending share prices south.

"The slide today is people questioning whether Telstra will
maintain its holding in Solution 6 and Sausage," said Ord
Minnett dealer, Mr Richard Coppleson.  "It is weighing on
sentiment on a quiet day when there's not a lot of action.
There's just not a lot of information around on those
companies, so they can tend to move on rumours."

Both Solution 6 and Sausage surged last year, although
Solution 6 has slumped more than 70 per cent in the past
six months and Sausage has lost about 50 per cent.
(The Border Mail  17-July-2000)

SPIKE NETWORKS: Expects $27M full-year losses
---------------------------------------------
Internet service company Spike Networks has flagged full-
year losses to 30 June of $27 million, based on
consolidated revenues of about $17 million.

Spike said the results would be in line with its first half
net loss of $12.8 million.  The company said the estimate
was subject to the final consolidation of its operations in
the US, Japan, Hong Kong and Australia, the equity
accounting of the recently concluded Spike CyberWorks joint
venture and audit verification.

Spike said the results was driven by losses generated in
Spike Radio, its service operations in the US, investment
in the Japan, Hong Kong and Austrealian service operations
and one-off transaction costs associated with the
establishment of the Spike CyberWorks joint venture.

The company said it had reduced Spike Radio's outgoings and
expected the subsidiary's financial position to improve in
the current financial year, while the US service operation
had been shut down.  The services operations in Japan, Hong
Kong and Australia were also expected to develop strongly
in the current financial year.

"From a revenue perspective the revenues generated in the
company's core services activities in Australia, Japan and
Hong Kong were comfortably ahead of prospectus forecast
levels, while revenues from Spike Radio, the company's
services business in the United States and other
anticipated ventures activities did not achieve those
levels," the company said.

The company said its financial position was strong with no
debt and approximately $21 million in cash on deposit.
"Contrary to press reports in today's Daily Telegraph
newspaper, the company advises that there is no
investigation by either the Australian Stock Exchange or
the Australian Securities and Investments Commission into
the affairs or activities of the company," it said.

Spike's services business throughout Asia is now being
conducted through Spike CyberWorks, held 70 per cent by
Spike and 30 per cent by Pacific Century CyberWorks.
"An aggressive growth strategy is being pursued by both
Pacific Century CyberWorks and Spike, with the objective of
positioning Spike CyberWorks as the leading e-business and
digital solutions provider in the Asian region," the
company said.  (Fairfax I.T.  17-July-2000)

SUPERSHUTTLE: Head company goes into voluntary liquidation
----------------------------------------------------------
The company heading the $100million Supershuttle ferry
project has gone into voluntary liquidation.

Supershuttle planned to build a fleet of high-speed ferries
on Kooragang Island to run between Gosford and Sydney, with
a possible route north to Newcastle later.  Hundreds of
construction jobs are in the pipeline over the project,
which has been backed by Gosford City Council as a major
tourism and transport venture.

Supershuttle founder and Ettalong businessman Stephen
Duncan said last night that he had called the
administrators as a last resort.  "This is all about saving
the project," Mr Duncan said.

He said Sydney firm Gavin Thomas and Partners had been
appointed yesterday as administrators to Streamliner
Supershuttle Pty Ltd.  Letters to creditors would be sent
later this week, and a creditors' meeting held shortly.

"The administrator has been called in because of the
corporate structure, not because of Supershuttle itself,"
he added. "We've spent $4million on this so far and we are
determined to see it through."

Mr Duncan said he had been working for months to settle a
dispute with a West Australian mining company, Resource
Exploration Ltd, which had bought into the project last
year.  Mr Duncan said yesterday that the WA company was no
longer interested in the project, but terms of settlement
could not be worked out.

A major bank was interested in financing the project, but
only if its corporate problems were solved first. The
futuristic 60-metre turbine-powered ferries have been
designed in Newcastle by Stockton-based naval architect
Greg Cox.

The 450-passenger ferries are designed for a cruising speed
of nearly 50kmh.  They would make the Sydney to Gosford
trip in an hour and 15 minutes.  (Newcastle Herald  13-
July-2000)


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

APPLEDAILY.COM.HK: Job cutbacks to cut costs
NEXTMEDIA.COM: Job cutbacks to cut costs
--------------------------------------------
About 100 staff members working for Internet companies
controlled by Next media magnate Jimmy Lai Chi-ying are
expected to be sacked this week - the latest casualties of
a shake-up rattling the dotcom industry.

Sources at Nextmedia.com said the dismissals would
represent a third of the staff at that company and related
site Appledaily.com.hk. The cutbacks, due to be announced
tomorrow, are expected to slash monthly expenditure by half
from $10 million to $5 million. They will affect editorial,
technical and marketing staff.

The cuts follow the abandonment last month by SCMP.com -
electronic edition of the South China Morning Post - of its
Chinese-language financial news channel, accompanied by 18
layoffs.  Industry experts are warning that further cuts or
closures are likely amid intense competition among on-line
media organisations.

Nextmedia.com and Appledaily.com.hk are believed to have
lost about $21 million between October last year and March
this year.  Spokesmen for the companies were not available
to comment last night. But staff at Nextmedia.com said the
shake-up began last month when some staff were redeployed.

"We've been expecting that the redundancies will come
sooner or later," a staff member said.

Staff at Appledaily.com.hk said a meeting yesterday between
management and employees was suspended without reasons
being given.  Entertainment site Show8.com also cut staff
in its administration section and sales team recently.
Andy Ho On-tat, managing director of City Telecom
subsidiary i-Channel, said the market was near saturation,
if not "too crowded."

"It is too difficult to run a news website because the cost
is so high," he said, adding that staff was the main
expenditure. "Moreover, people can get news information
from different channels like television and radio, not only
from the Internet."

Nextmedia, he said, had at first charged a subscription but
was now free, "because no one will pay for news."

As a result, he predicted more news websites would close in
future.  He said i-Channel would in future put its
resources into education stories rather than daily news.
Chief Executive Officer of hongkong.com, Rudy Chan Kai-yu,
said Internet businesses had been growing so rapidly that
it was now time for some weaker competitors to leave the
market.

Michael Leary of Lehman Brothers said part of the problem
for existing media companies was finding the right format
to make a leverage of their offline assets in the online
environment.  The layoffs at the Lai companies follow a
deal announced on June 5, under which Next media announced
it had agreed to buy Appledaily.com for $500 million.

The Apple Daily online edition is 99.77 per cent owned by
Mr Lai and 0.23 per cent by Apple Daily employees. Next
Media will pay for the acquisition by issuing 362.32
million shares at $1.38 each. The deal is subject to
approval by independent shareholders of Next Media.

After completion of the deal, Apple Daily will enter into
an agreement with the online company, giving the latter an
exclusive royalty-free licence to publish Apple Daily on
the Internet, Next Media said. Next Media shares closed
yesterday 30 per cent or 37 cents higher at $1.62 each.
(Hongkong iMail  17-July-2000)

SHANDONG XINHUA: Tells creditors to buy back H shares
-----------------------------------------------------
Shandong Xinhua Pharmaceutical Co Ltd has issued a notice
to creditors informing them of its intention to repurchase
up to 15 mln H shares.

If the company buys back the shares, this will reduce its
registered capital to 412.3 mln shares from 427.3 mln.
Therefore, the company is obliged to inform creditors of
the planned repurchase, in accordance with the company law,
an announcement said.  On June 12, Shandong Xinhua's
shareholders approved a plan to repurchase up to 10 pct of
the company's H shares, it said.  Shandong Xinhua's A
shares last closed at 16.85 yuan.  (AFX News  11-July-2000)

WANG KAO CARGO (SERVICES) LTD: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 23 on the petition of
Caltex Oil Hong Kong Limited for the winding up of Wang Kao
Cargo (Services) Limited. A notice of legal appearance must
be filed on or before August 22.

WELL CREATE INT'L LTD: Facing winding up petition
-------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 16 on the petition of The
Hongkong and Shanghai Banking Corporation Limited for the
winding up of Well Creat International Limited. A notice of
legal appearance must be filed on or before August 15.

WINART INT'L DEVELOP.LTD: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 9 on the petition of C.F.
Li Consultancy Company Limited for the winding up of Winart
International Development Limited. A notice of legal
appearance must be filed on or before August 8.


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

PT ASTRA INT'L: Debt plan in jeopardy
PT BARITO PACIFIC TIMBER: Debt plan in jeopardy
PT PERKEBUNAN NUSANTARA IV: Debt plan in jeopardy
PT SATELINDO: Debt plan in jeopardy
PT TAMBANG BATUBARA BUKIT ASAM: Debt plan in jeopardy
-----------------------------------------------------
PT Satelindo, Indonesia's No. 2 cellular phone company,
thought it was out of the woods a few weeks ago when it
rescheduled $583 million of borrowings in the country's
biggest such debt workout this year.

It hadn't counted on the rupiah losing a quarter of its
value on political infighting in President Abdurrahman
Wahid's nine- month-old government. The rupiah weakened to
9,500 to the dollar from about 7,000 in January, with most
of the decline coming after Satelindo got its 46 creditors
to agree to its debt plan at the end of May. The drop
raises the amount the company's having to cough up, making
it harder for it to stick with the plan.

"Our dollar obligations have to be recalculated at an
unfavorable rate," said Gerard Meerman, Satelindo's finance
director.

So the story goes across corporate Indonesia. Just when
companies were beginning to claw out from under $81 billion
in debt, the rupiah's tumble is threatening once again to
push them closer to the brink, putting many debt plans in
jeopardy.  Although the economy's rebound from a 13 percent
contraction in 1998 has rekindled demand for phone
services, cars, cement and other goods, the rupiah's
continuing slide could eat into any gains in sales by
making companies' debt burdens heavier.

PT Barito Pacific Timber, the country's largest plywood
exporter, which is in talks to restructure about $421
million in debt, says it's unlikely to get a pact until
next year as creditors wait for the currency's slide to
end. PT Astra International, Indonesia's largest automaker,
which boasted it wouldn't have to sell assets to meet debt
obligations, now says it's looking to sell its 92 percent
stake in an auto unit, Honda Federal, this year.

"If the rupiah stays weak, we have to (import) components
at a higher price, and if this continues... consumers will
stop buying," said Astra's president director, Theodore
Rachmat. That may make Astra "reconsider everything,"
including the debt repayment plan it worked out with
creditors last year, he said.

For now, higher sales are helping Satelindo, Astra and
others meet debt obligations. They can't be sure, though,
about how long that will last.

"The situation in Indonesia is going from bad to worse,"
said Chia Woon Khien, the chief analyst for Asia at
Skandinaviska Enskilda Banken. "It's clear there is little
room for the rupiah to strengthen as jittery corporations
flock to the U.S. dollar."

The rupiah's slump to a 16-month low is also driving out
even the most die-hard overseas investors. The Jakarta
Composite stock index is down 44 percent in dollar terms
this year. The stock market's value has shrunk by $12
billion since the beginning of the year.

"The valuation of Indonesia is very cheap, but there's no
need for us to invest there given the political risk," said
Tan Eng Teck, Singapore-based fund manager at OUB Optimix
Funds Management Ltd. "We'd rather give Indonesia time to
get its house in order and find cheaper companies elsewhere
in the region."

That's even though Indonesia's companies, its economy and
the rupiah are in better shape than two years ago when
protests against then President Suharto's 32-year reign
slashed more than 80 percent of the currency's value as it
fell to 17,000 to the dollar. The drop plunged almost all
large Indonesian companies into losses as debt payments
ballooned in rupiah terms.

In the first quarter, the economy grew 3.2 percent from a
year earlier, after expanding 0.2 percent last year. In the
first five months, exports grew 32 percent, while the trade
surplus widened 49 percent.

PT Semen Gresik, Indonesia's biggest cement maker by sales,
said first-quarter earnings rose almost sevenfold from last
year. Noodle maker PT Indofood's profit rose 42 percent in
the first quarter, while Astra's sales in the first five
months of this year jumped more than threefold, mostly
fueled by domestic demand.

"Growth is picking up and inflation is contained," said
Pieter van der Schaft, a Hong Kong-based economist with
Barclays Capital. Indonesia's inflation rate has been at
about 2 percent to 3 percent this year, which the World
Bank lauded as proof the country's economy is on the mend.

"(The) underlying fundamentals would suggest the rupiah has
depreciated too much," said John Dodsworth, the country
representative for the International Monetary Fund, which
cobbled together an international bailout program for
Indonesia in 1997.

Still, the soured sentiment will make it hard for the
Indonesian Bank Restructuring Agency, or IBRA, to sell
state assets to salvage $29 billion in non-performing loans
it took from the country's banks. The loans represent the
bulk of more than $40 billion in assets the agency has
nationalized since the height of the country's financial
crisis in 1998.

Also in jeopardy is Indonesia's drive to raise 6.5 trillion
rupiah ($767 million) this year of shares of state
companies such as plantation firm PT Perkebunan Nusantara
IV and coal miner PT Tambang Batubara Bukit Asam. The World
Bank and the IMF have warned that these sales must start
soon to offset a pile of public debt that could be as high
as 90 percent of GDP.

Trouble at the companies and the economy will make it
harder for Wahid to defend his policies to the People's
Consultative Assembly between Aug. 7 and 18, an event which
is harder to predict since the body is no longer the rubber
stamp institution that served Suharto.

Wahid may draw more fire from the assembly, especially
after he ordered that up to ten lawmakers be arrested and
questioned for allegedly stirring religious strife across
the country. Wahid also angered government officials by
firing two economic ministers earlier in the year. That,
and charges of graft in his administration may give the
assembly more ammunition.

"The concerns and uncertainties investors have remain on
the political front," said Chong Yoon Chou, a money manger
with Singapore-based fund manager with Aberdeen Asset
Management Asia Ltd., which currently has about $40 million
worth of Indonesian assets under management. "There's just
too much noise coming out right now."  (Bloomberg  17-July-
2000)

PT BAKRIE SUMATERA: Meets with creditors on restructure
-------------------------------------------------------
PT Bakrie Sumatera Plantation has met with creditors to
finalise the restructuring of an 81 mln usd syndicated
loan, the Jakarta Stock Exchange said, citing a letter from
the company.  It said the participants in the syndicate
include Credit Lyonnais, Rabo-Duta Indonesia, HSBC Jakarta,
BRI Finance, Fuji Bank Ltd and Credit Suisse First Boston.
(AFX News  10-July-2000)

PT BANK BALI: Indonesia central bank to acquire
-----------------------------------------------
Bank Indonesia is to regain control over troubled
Bank Bali and decide on its fate, senior economics minister
Kwik Kian Gie said Thursday.

Delays in recapitalizing Bank Bali caused by a political
scandal last year and a legal battle with the bank's former
owner, Rudi Ramli, have pushed up the cost of repairing its
balance sheet.

"Bank Bali will go back to Bank Indonesia," Mr. Kwik said,
adding that the Indonesian Bank Restructuring Agency
wouldn't be responsible for Bank Bali.

The Indonesian government took over Bank Bali late July
last year after its owner failed to come up with funds to
recapitalize the bank. But the Ramli family won a lawsuit
to cancel the takeover, and a court has ordered the
government to return the bank to its owner.

Kwik, who chairs the interministerial Financial Sector
Policy Committee, said the government would drop its
earlier appeal against the court decision.  He declined to
comment on whether Bank Bali would be liquidated, saying
that it would depend on Bank Indonesia as the supervisory
body.

"I don't want to comment on the fate of Bank Bali; it's
completely up to the central bank," he told reporters.
Before the March court ruling threw a spanner in the
works,Indonesia planned to recapitalize Bank Bali
by June 30, with 4.99 trillion rupiah($530.9million) of
public money.

But senior government officials have warned that the cost
has since risen sharply, fueling talk that it would be
moreprudent to liquidate the bank. Shares in Bank Bali
closed Thursday unchanged at 180 rupiah. (Financial Express
15-July-2000)

PT LANDASAN TERUSAN SENTOSA: To seek payment suspension
-------------------------------------------------------
Ongko Group subsidiary PT Landasan Terusan Sentosa is to
appeal for payment suspension on its 270 bln rupiah debt,
company lawyer Hendriyanto said.

Hendriyanto was speaking after the first hearing on the
company's bankruptcy case.  Earlier, the Indonesian Bank
Restructuring Agency (IBRA) filed a bankruptcy application
with the Jakarta Commercial Court against four Ongko Group
companies including PT Landasan Terusan Sentosa.

Chief judge Samsudin Manan Sinaga said the hearing will be
adjourned to July 14 to allow Landasan to present to court
its request for a temporary payment suspension along with
other necessary documents.  IBRA lawyer Andrey Sitanggang
said if Landasan appeals for payment suspension that means
the company recognises its debts.

"This is all we need because earlier the company didn't
admit its debts," Sitanggang said. (AFX News  11-July-2000)


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

DAIEI: Could be the next bankrupt company?
------------------------------------------
Daiei fell 3.4 percent to 370 yen, on concern its financial
troubles could lead to its becoming the next in a series of
companies that have gone bankrupt.

On Friday, it raised a less- than-expected 263.5 billion
yen ($2.4 billion) from the initial public offering of its
convenience store unit, Lawson Inc. Some investors are
concerned the smaller-than-expected proceeds from the share
sale may delay Daiei's plan to halve its 2.2 trillion yen
group debt by February.  (Bloomberg  17-July-2000)

HIKARI TSUSHIN INC: CyberWorks to the resuce?
---------------------------------------------
Hikari Tsushin Inc. shares rose on a Hong Kong newspaper
report that it's in talks to sell a controlling stake to
Pacific Century CyberWorks Ltd., Asia's No. 2 Internet
investment company. Hikari denied the report.

Shares of the Japanese mobile phone subscription service
and Internet investor rose 11 percent, its biggest one-day
gain since June 29. Shares have fallen 98 percent in the
year to date from a high of 230,000 yen on Feb. 14 on
disappointment the company's 35- year-old founder and
president, Yasumitsu Shigeta, failed to book operating
profit as expected.

"Change in management could be a good move for Hikari
because the president has lost credibility with investors,"
said Motoharu Sone, an analyst at Tsubasa Research
Institute Ltd., who rates the shares "sell."

The Chinese-language Hong Kong Economic Times cited
unidentified sources as saying CyberWorks was in talks with
a major Japanese company to take over Hikari Tsushin,
without giving details.  Hikari Tsushin is not considering
selling itself to anybody, said a Hikari spokesman who
declined to be named. CyberWorks couldn't be reached for
comment.

The newspaper said officials from Hikari Tsushin and from
the other Japanese company, which the newspaper didn't
identify, met in Hong Kong last week with CyberWorks
Chairman Richard Li.

"We didn't have any officials coming to Hong Kong last
week," said Danny Wong, the deputy chief executive officer
of Hikari Tsushin International Ltd. in Hong Kong. "All we
can say is the company has received a lot of proposals from
various companies these past few months." He declined to
give details.

Li and Shigeta agreed in February to swap $1 billion worth
of shares in their companies. Li agreed to exchange a 3.5
percent stake Cyberworks for 1.65 percent of Hikari. The
market value of Hikari Tsushin is 128 billion yen ($1.18
billion) based on yesterday's closing price.

The company distributes cell phones made by carriers DDI
Corp. and Japan Telecom Co. through its network of over
2,000 franchise shops, helping to boost the number of
Japanese cell phone subscribers past fixed-line users
earlier this year.  That may be incentive for DDI and Japan
Telecom, Japan's second and third-biggest mobile phone
operators, to seek to buy Hikari in order to put their
sales channels under their own supervision, Tsubasa
Research's Sone said.

The number of mobile phone contract holders through Hikari
Tsushin was 4.06 million as of April 30. That's 18 percent
of 22.4 million aggregate contracts of DDI, Japan Telecom
and IDO Corp. as of June 30. IDO is Toyota Motor Corp.'s
mobile phone unit, which will merge with DDI in October.
DDI and Japan Telecom both said they are not considering
buying a stake in Hikari Tsushin.

In the year ended March 31, Hikari posted a 23 percent rise
in handset sales. Before long, though, a mobile Internet
service offered by NTT DoCoMo Inc. , Japan's No.1 mobile
phone operator, that allows users to surf the Web and check
their balances via DoCoMo cell phones began eating into
Hikari's sales. Unfounded speculation that Shigeta was
arrested for insider trading caused Hikari shares to start
sliding.

To curb the decline, Shigeta hinted the company would beat
earnings expectations. On March 30, Hikari said it would
report a first-half operating loss of 13 billion yen
instead of the expected 6 billion yen operating profit.
Less than a month later, the company announced it would
post a full-year operating loss. Hikari shares collapsed,
falling their daily limit for all but one trading day in
April.

The company's woes were compounded last month when Japan
rating and Investment Information Inc. lowered Hikari's
long-term debt rating three notches to the sub-investment,
or junk, grade of "BB-." Later that month Hikari abandoned
stock option plans announced in January after its shares
had fallen more than 90 percent from the February high.
Shigeta owned about 21 percent of outstanding shares
directly as of Aug. 31 and another 48 percent through
Hikari Power K.K., which manages his personal assets.

Hikari shares rose 420 yen, or 11 percent to 4,280. Some
881,300 shares traded, triple the six-month daily average
volume of 292,330 shares. Shares of Hikari Tsushin
International, the investment unit of Hikari Tsushin, rose
as much as 13 percent to HK$0.445 and were last at HK$0.44.
(Bloomberg  17-July-2000)

SEIYO CORP: Saison Group files for it liquidation
-------------------------------------------------
Saison Group, a department store, credit card and hotel
conglomerate, and its creditors may tomorrow file for the
liquidation of Seiyo Corp., a spokesman said. Jusco Ltd.
fell 2.9 percent to 2,215 yen. Fast Retailing dropped 5.8
percent to 37,950 yen. (Bloomberg  17-July-2000)

SOGO CO.: May sell Hong Kong store
----------------------------------
Sogo Co., a bankrupt Japanese department store operator,
said it may sell part or all of the building that houses
its Hong Kong outlet in what may be the city's biggest
property sale since the Asian financial crisis.

A Sogo spokesman said the company was looking for a partner
to share ownership of the 450,000-square foot building now
occupied by its store and offices. Analysts said the
building, on one of the busiest corners in Causeway Bay, a
major shopping district, is worth as much as HK$4 billion
($513 million).

The sale, if approved by Sogo's legal caretakers, would
raise money to help the company repay 1.87 trillion yen
($17.3 billion) of debt. It could also help kick-start Hong
Kong's property market, which hasn't kept pace with the
city's economic recovery.

Among the most likely bidders is Hang Lung Development Co.,
which owns several retail properties in Causeway Bay --
some formerly occupied by Japanese department stores --
along with its Amoy Properties Ltd. unit.

"As an active property group in Hong Kong, we are obviously
interested," said Alfred Li, an executive director at Hang
Lung. "It all depends on the price."

Singapore real estate developers and U.S. based property
investment funds are also potential bidders, said Andrew
Taylor, an analyst at ABN Amro Asia Ltd. Sogo could raise
HK$3.8 billion to HK$4 billion by selling the entire
building, he said.

Such a sale "would definitely give a charge to retail
property and be price-setting for the market," said Taylor.

Few major Hong Kong shopping centers have changed hands
during the past three years, in part because slumping
prices for consumer goods eroded profit margins and made
shopkeepers resistant to higher rents. The value of retail
property fell by more than half in 1997 and 1998.
Leaseback

Buyers may stay away because of doubts Sogo, which occupies
387,500-square feet of the building, will remain a tenant.
While Sogo said it intends to continue operating the store,
the final decision is up to its bankruptcy trustees.

"As a buy and leaseback proposition, it's quite attractive
to an institutional investor," said David Faulkner, an
executive director at Brooke International Ltd., a property
consultancy.

Without Sogo, the buyer would have to take a more active
role, converting the building into a shopping center.
Faulkner said Brooke had examined the building for a
potential buyer, whom he wouldn't name, earlier this year
and estimated its worth at $500 million. Most of the value
is in the retail space, as the office space above the
department store is second tier "Grade B" space and not
worth much, he said.

Sogo was unchanged at 11 yen. The stock has lost 91 percent
of its value this year. Hang Lung rose 3.8 percent to
HK$6.80 today, and declined 21 percent this year. Amoy rose
3.8 percent to HK$6.90, and rose 7.3 percent this year.
(Bloomberg  17-July-2000)



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

DONG-AH CONSTRUCTION: Creditors reject former exec
--------------------------------------------------
Former construction magnate Choi Won-suk was recently
rejected for the top job at Dong-ah Construction
Industrial, the company he left after steering it into
bankruptcy in early 1998. Creditors turned down Choi's
bid to take up his old post in the first round of
screening, said Dong-ah's creditors Wednesday.

The firm is still controlled by creditor banks, who fired
top executives for their involvement in a bribery
scandal.  A local daily confirmed last month that Dong-ah
chairman Koh Byung-woo had greased the palms of some 40
incumbent lawmakers to wield their influence to obtain the
firm's release from court management.

Koh was later severely criticized by Dong-ah's labor union
as well as subordinate members of his management team,
including company president Lee Chang-bok. With
temperatures rising throughout the company, some Dong-ah
workers went so far as to argue that former chairman Choi
was the right man to revive the company. At the height of
Choi's power, Dong-ah was the dominant construction company
in the Middle East market, particularly in Libya. (The
Korea Herald  14-July-2000)

HYUNDAI MOTORS: Spinoff plan enters critical stage
--------------------------------------------------
The Hyundai Group's stalled plan to spin off its automotive
business is entering a critical stage in the wake of the
government's offer last week to mediate the group's
escalating family dispute.

Jeon Yun-churl, chairman of the Fair Trade Commission,
demanded Friday that Hyundai founder Chung Ju-yung split
his 9.1-percent stake in Hyundai Motor into 6.1 percent in
preferred stock carrying no voting rights and 3 percent in
common stock to meet the legal requirements for the
automaker's separation.

In what sounded like an ultimatum, Jeon asked Hyundai to
decide on his proposal by the end of this month.  Chung's
over-3 percent stake has been the last obstacle to the
spin-off scheme. In order for Hyundai Motor to be
considered legally independent from the group, Chung and
all other Hyundai Group affiliates must reduce their
shareholding in Hyundai Motor to less than 3 percent,
according to the present law.

Hyundai has not shown any immediate response, but analysts
forecast the embattled conglomerate will have no choice but
to accept the government proposal.  "The ball is now in
Hyundai's court," said an analyst. "Afraid of loss of
confidence from the market, the Chung family may attempt to
end its internal dispute."

Hyundai's crashing image in contrast to rival Samsung
Group's noticeable takeoff of late will also force the
Chung family to bury the hatchet and hasten restructuring
moves, he added.  In this regard, Hyundai said it will
submit a revised plan to spin off Hyundai Motor to the FTC
within this month.

An official of the group's restructuring committee said:
"We are studying various ways to come up with a new
separation plan acceptable by the government and the
people."

Another group executive said that there is no precedent in
which ordinary shares are massively turned into preferred
shares, calling the FTC chairman's proposal "confusing."
"Above all, it is the founder that holds the key to the
protracted dispute," he said, floating the idea of a
gradual stock shift for a period of two to three years.

The separation of Hyundai Motor is part of the government's
greater efforts to reform the largest chaebol's family-
controlled, sprawling empire by breaking it up into five
smaller conglomerates, including electronics, construction,
heavy industries and finance-service business.  However,
many analysts say that the outlook is not bright because of
the Chung family's lingering managerial disputes.

The cause for the delayed spin-off restructuring has often
been traced to the severe sibling feud. The watchers
speculate that the elder Chung's desire to hold strong
managerial influence over Hyundai Motor is actually
intended to eventually drive his eldest son, Chung Mong-
koo, out of his chairmanship. They also predict that in the
wake of Hyundai Motor's failure to separate itself from the
group, the elder Chung's favored son, Chung Mong-hun, is
expected to continue to work to remove his elder brother
from Hyundai Motor's top post.

Indeed, the Mong-koo camp has been steadily expanding its
Hyundai Motor shares in a bid to defend its management
right in a possible equity battle with the Mong-hun camp.
Following a "let's buy our own share" campaign by Hyundai
Motor employees, three parts suppliers to the nation's
largest automaker bought 666,570 shares last week.

In a counter move, the Mong-hun camp is said to be actively
buying Hyundai Motor stock through offshore funds. Mong-koo
is said to be capable of wielding 38.6 percent of voting
rights in Hyundai Motor, including a 4 percent share owned
by himself, a 7.8 percent stake by Hyundai Precision &
Industry, 12 percent by Hyundai Motor employees and 4.8
percent by Mitsubishi Motors. (The Korea Herald  17-July-
2000)


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

IDRIS HYDRAULICS: Proposed rehab plan details unveiled
------------------------------------------------------
Idris Hydraulic (Malaysia) Bhd's proposed restructuring
scheme, to clear debts of RM767.427 million, will see Datuk
Che Mohd Annuar Che Mohd Senawi emerging as the major
shareholder.

IHMB signed an agreement yesterday with Che Mohd Annuar,
former CEO of Malaysian Co-operative Insurance Society, for
his subscription of 150 million new shares in Idaman Unggul
Sdn Bhd which has proposed to take over IHMB.  Upon
completion of the scheme, IHMB will be a wholly-owned
subsidiary of Idaman Unggul and Che Mohd Annuar will be the
single largest shareholder.

The restructuring scheme has received Bank Negara
Malaysia's approval.  IHMB has proposed to undertake a
comprehensive restructuring exercise in order to address
its various financial obligations to creditors and to
reconstitute its assets in a new entity under the
auspices of the Corporate Debt Restructuring Committee.

The scheme includes:

* A proposed capital reconstruction of IHMB which involves
an exchange of IHMB shares for new shares in Idaman Unggul
and the cancellation of part of the issued and paid-up
share capital of IHMB, in conjunction with the existing
arrangements and understanding between IHMB and KFC
Holdings (M) Bhd pertaining to the retransfer of legal
title to the land and building of Wisma Idris.

* A proposed corporate restructuring of IHMB which involves
the transfer of IHMB's listing status on the KLSE Main
Board to Idaman Unggul, a rights issue of shares by Idaman
Unggul, the proposed shares subscription and a transfer of
Talasco Insurance Bhd by IHMB to Idaman Unggul.

* a proposed debt-reconstruction of IHMB and its
subsidiary, set-off cash in various fixed deposit accounts,
a partial waiver of debt by IHMB Group's creditors and the
full settlement of IHMB group's indebtedness.

Che Mohd Annuar is a director of IHMB and Idaman Unggul. He
is also chairman of Seni Jaya Corporation Bhd and sits on
the board of directors of Island & Peninsular Bhd, Austral
Enterprise Bhd, Landmarks Bhd, Focal Aims Holdings Bhd and
Shangri-La Hotels (Malaysia) Bhd. (The New Straits Times
14-July-2000)

NALURI BHD: To sell part of its Malaysian Air stake
---------------------------------------------------
Financially challenged Naluri Bhd. shares rose for the
first time in three days after a report the company will
sell part of its stake in Malaysian Airline System Bhd. to
Qantas Airways Ltd.

Naluri, which owns 29 percent of the country's flag-
carrier, will sell part of that stake for between 6.30
ringgit and 7 ringgit for each Malaysian Airline share, the
Business Times newspaper reported. That's about twice the
latest market price for shares of MAS, as the airline is
commonly known. Naluri shares rose 8 sen, or 6.6 percent,
to 1.29 ringgit.

"It would be great for Naluri because of the price," said
John Casey, an analyst at SG Securities (Singapore) Pte.
"For MAS, a tie-up with Qantas would bring it closer to the
Oneworld alliance," which includes British Airways Plc,
Europe's biggest airline.

Casey recommends investors buy MAS shares as the stock is
trading at less than the value of the company's assets.
Malaysian Airline shares fell 2 sen to 3.70 ringgit in
recent trading. They have declined 30 percent in the past
12 months, compared with a 1.9 percent gain in the 100-
stock Composite Index.

Qantas officials declined to comment. Naluri's major
shareholder Tajudin Ramli and Malaysian Airline's executive
vice- president Bashir Ahmad didn't return calls.
Last month, Naluri said it may not sell a portion of its 29
percent stake in Malaysian Airline even though it needs to
raise cash as part of the reorganization of its 1 billion
ringgit debt ($263 million) by mid-2002.

The Malaysian government owns a "golden share" in the
airline, giving it control over major decisions such as
stake sale. That makes it less likely the government would
allow control of the airline to go to a foreign company,
Casey said. Prime Minister Mahathir Mohamad has said he
would prefer control of the airline remain within Malaysia.
The airline also hasn't received permission to raise
domestic airfares since 1992 because the government wants
to prevent inflation from accelerating.

For Qantas, the purchase may not come as easily at a time
when it's considering improving its aircraft fleet to
counter rising competition in Australia. Virgin Group
Ltd.'s airline, Virgin Blue, will start flying a domestic
route in Australia from Aug. 3.

"Qantas is not quite as cash-rich as it used to be, so I
really doubt this purchase will take place," Casey said.
Qantas shares rose 1.8 cents to A$3.69. (Bloomberg  17-
July-2000)


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

AT DE CASTRO SECURITIES CORP.: Named in BW fraud report
LUCIO CO.: Named in BW fraud report
PCCI SECURITIES BROKERS CORP.: Named in BW fraud report
-------------------------------------------------------
The final report on the BW Resources Corp. stock scam to be
submitted to the Department of Justice today has yielded
evidences of new violations of the country's securities
laws.

Securities and Exchange Commission Chair Lilia Bautista
said the report, which tagged 39 individuals and eight
brokerages, provided a very strong case of conspiracy to
prop up share prices of BW and defraud investors. However,
she said it was up to the justice department to determine
who the principals and accessories were.

Bautista said out of eight brokerages implicated in the new
report, three were already included in the first one but
she declined to identify them.  She told reporters on
Friday that on top of the wash sales and matched orders
cited in the first SEC report, there were also evidences of
"EQ trade" and manipulative schemes through private
placements.

"In EQ trade, there were several holders of chunks of
shares farmed out. These individuals have a lot of holdings
and then they funnel it through a broker and then sold to
their employees or to smaller players to give an aura of
active trading. You don't see it unless you get through all
the reports in PCD (Philippine Central Depository) because
these are big blocks," Bautista disclosed. "In a way, they
are not revealing the names in the market. The certificate
is just one because it was one block but when we segregated
we found out about it. It's a snap design for active
market. There could be five big blocks and only one person
did that."

Bautista said the SEC also presented evidences of price
manipulation through private placement, an area that the
report made by former Philippine Stock Exchange vice
president for compliance and surveillance group Ruben
Almadro already pointed out.  But as the SEC was barred
from using the PSE's report, Bautista said the commission
conducted the fact-finding process on BW independent of the
Almadro report.

"I think all the documents are intact and secure," Bautista
said.

A copy of the SEC's report has tagged some of President
Estrada's closest friends as among those involved in the BW
scam, including BW majority owner Dante Tan, restaurateur
Carmelo Santiago and trader Lucio Co. PSE chair emeritus
Eduardo Lim Sr. and former BW president Eduardo Lim Jr.
were also named in the report. Also being charged were
Ramon Lee, Carlos Sy, Hermogenes Laddaran, Jimmy Juan Jr.,
Manuel Juan, Jacob Assad, Leoncio Lim, Robert Co, Mario GF
Juan, Lilia Gonzales, Christine Jao, Mary Ann Yu, Lily Lim,
Merlita Ng, Susan Pe, Patrick Chua, Jose Ong, Anthony Sy,
Carlos Ching, Amelia Yao and Paul Gotianse.

Investment firms AT de Castro Securities Corp. and PCCI
Securities Brokers Corp. were in the list of brokers
allegedly involved in the price manipulation scheme through
EQ trade. Two other brokers were cited for their
involvement in private placement transactions.
Last week, SEC prosecution and enforcement department head
Elizabeth Martin was relieved of her duties for saying
certain portions of the case against BW were "weak" and had
"no sufficient legal basis."  (Philippine Daily Inquirer
17-July-2000)

C & P HOMES: Creditors threaten debt talks pull-out
---------------------------------------------------
Nervous creditors of debt-ridden C&P Homes are threatening
to pull out of the negotiating table for the restructuring
of its estimated P9 billion in debts unless the company
improves its offer by, among others, reducing the valuation
of its properties, industry sources told The STAR over the
weekend.

The subdivision developer owned by Speaker Manuel Villar
wants to pay its creditors real estate properties. But
while creditors are willing to accept these pieces of land
as payment under an arrangement technically known as
"dacion en pago" or "payment in kind," sources said these
properties are "overvalued.

"Their (creditors) resistance is in the valuation. The
company (C&P) wants to maximize its interest, thus, the
overvaluation. On the other hand, creditors want a fair
market value of the property. Unless this issue is
resolved, they will not be able to agree on the terms of
the (debt) restructuring," sources said.

Sources said those that have shown impatience about the
deal are mostly the foreign banks who acted as underwriters
for the floating rate notes (FRNs) and foreign investors.
Other sources said the creditors have no choice but to
stick to the restructuring deal to prevent a "mad scramble"
for its assets. The firm has a land bank valued at P16
billion. They said the fact that the firm is owned by
Villar also puts pressures on the creditors to try to reach
an agreement.

There is a political factor involved here, they added.
These creditors are mostly those who invested in the
company's $150-million (P6.5 billion) in FRNs and P3
billion in long-term commercial papers (LTCPs). The yields
on the FNRs are tied to the London, interbank offered rate
or Libor while the LTCP's were based on the Treasury bill
rate.

While sources could not say if the FRN's have already
fallen due, they said half of the principal amount of the
LTCP or P1.5 billion would be payable by 2001 and the
balance by 2003. Sources said C&P has been unable to pay
even the interest on the LTCPs and FRNs since November last
year.

"They defaulted on the LTCPs since November last year. They
are trying to work on the restructuring. They submitted a
restructuring plan that was not acceptable to us," sources
from one of the creditor banks said.

Sources said both the FRNs and the LTCPs were extended on a
clean loan basis, that is, without the collateral to back
up these debts.  There is a negative pledge provided in the
agreements. The issuer (of these debt instruments) could
not secure just one of the creditors. If it does, it must
secure all of them," sources explained.

The STAR tried to contact C&P chairman and chief executive
officer Sulficio Tagud Jr., for comment. His secretary said
he is out of the country.  "Currently, C&P's LTCPs are
mostly untraded, and are considered under water in most
banks' treasuries and trust groups," sources said.

This means that these instruments are not traded in the
secondary market and are not eligible for the so-called
repo transactions. A working committee has been created by
C&P Homes, its creditor banks, bond holders, and
underwriters for the debt restructuring deal. The firm has
appointed Deutches Bank as its financial advisor.
(Philippine Star  17-July-2000)

MAYBANK PHILS.INC.: Expects net losses this year
------------------------------------------------
Maybank Philippines, Inc. (MPI), the local subsidiary of
Malaysia's Maybank Group, expects to incur a net loss this
year.

At Friday's press briefing, Maybank Group chairman Mohd
Basir Ahmad said MPI will focus on consumer lending and has
been investing in computerization and upgrading its
automated teller machines (ATMs).

"We don't expect to make a profit this year. But we expect
to break-even next year," Mr. Ahmad said. "We really
expected to make losses in the first two years," bank
director Ismail Shahudin added.

The Malaysian parent company recently bought the 39% stake
of semiprivate Philippine National Bank (PNB) in MPI by
exercising its call option or the option to buy the
remaining shares at a pre-agreed price formula.  It entered
into such agreement with PNB when it bought 60% of the bank
in 1997 for 800 million Philippine pesos (PhP) (US$18
million at PhP44.559:US$1). PNB raised PhP1.41 billion from
the sale of the Maybank unit. (Business World  17-July-
2000)

REYNOLDS PHILS.: Gets week extension to craft explanation
---------------------------------------------------------
Aluminum sheet maker Reynolds Philippines Corp. (RPC)
escaped possible suspension of trading today after the
Philippine Stock Exchange (PSE) granted the company another
week to explain its alleged involvement in illegal trading
activities in the stock market last year.

In a letter to PSE president Ramon T. Garcia obtained by
BusinessWorld last Friday, the company stood by its
position that it has not engaged in price rigging
activities and asked the local bourse not to suspend
trading of its shares until it has come up with an
explanation for the unusual movement of its stock price.

The management of RPC, led by company president and chief
executive officer Jaime Y. Gonzales, also urged the stock
exchange to give it reasonable time to comment on the audit
report made by the PSE's Compliance and Surveillance Group
(CSG).

"We will give them due process.  We will furnish them a
copy of the results of the audit report and ask them to
explain as soon as possible. So it's a matter of what they
said and the results of the audit," Mr. Garcia said in a
telephone interview with BusinessWorld over the weekend.

The CSG report contains initial findings of alleged
"kiting" and "wash sale" activities initiated by RPC to
influence the movement of its share price since last year.
Kiting is a practice which allows the temporary use of
funding or bridge financing through advance payment of
selling transaction. A wash sale, on the other hand,
involves the same buyer and seller in a transaction. Both
practices artificially influence the prices of stocks.

BusinessWorld sources also revealed that RPC bought some 85
million Philippine pesos (PhP) (US$1.9 million at
PhP44.559:US$1) of its own shares through a foreign broker
from June 26 until June 30 this year.  The foreign broker,
which asked not to be named, declined comment when asked
about its involvement in the said transaction. The company,
however, stood by its statement that it is in not involved
in any illegal trading of RPC shares in the stock market.
(Business World  17-July-2000)

URBAN BANK : SMC, Petron, Meralco OK rehab plan
-----------------------------------------------
Efforts toward rehabilitating Urban Bank gained ground
after its three big depositors -- San Miguel Corp. (SMC),
Manila Electric Co. (Meralco) and Petron Corp. -- agreed to
the proposed turnaround plan of Cojuangco-run Bank of
Commerce (Bancommerce).

The three firms agreed to convert at least 25% of their
deposits with Urban Bank and its investment house,
Urbancorp Investments, Inc. (UII), into preferred shares or
quasi-equity in Bancommerce, which won the bid for Urban
Bank and its subsidiary.  The equity conversion is one of
the conditions for Bancommerce's take over of Urban Bank.
Urban Bank closed last April 26.

Under the proposal, big corporate clients of closed Urban
Bank should convert at least 750 million Philippine pesos
(PhP) (US$16.8 million at PhP44.559:US$1) of their
outstanding deposits into equity stakes in Bancommerce.
State pension fund Social Security System (SSS) is likewise
being asked to provide PhP600 million in equity to meet the
PhP1.65-billion capital needed to rehabilitate Urban Bank.
Bancommerce pledged to infuse PhP300 million.

SSS has an existing PhP171-million investment in Urban
Bank. The state pension fund originally invested PhP286.65
million for its 15% stake in the bank and has two board
seats.  The signing ceremony, originally scheduled
Wednesday, took place Thursday night at the Rockwell Club
in Makati City.

The three companies approved the terms and conditions of
the memorandum of agreement, the rehabilitation plan and
the three-way merger of Bancommerce, Urban Bank and UII,
according to a statement from Bancommerce, which will be
the surviving entity.

The signatories of the MoA were: Ambassador Jose A. Syjuco,
Jr., chairman of Petron; Petron vice-president finance for
finance Mario S. Lucas; SMC general counsel and senior
vice-president Francis H. Jardeleza; SMC senior vice-
president for corporate affairs Alberto A. Manlapit;
Meralco president Manolo M. Lopez; Meralco treasurer Rafael
L. Andrada; Bancommerce president Raul B. de Mesa; and
Bancommerce chairman Antonio O. Cojuangco.

Meanwhile, the Philippine Deposit Insurance Corp. (PDIC)
and Bancommerce are set to sign Wednesday, pushed back from
today, an agreement for the bank's formal takeover of Urban
Bank.  Bancommerce beat Asia United Bank in its bid for
Urban Bank and investment house subsidiary.

The bank plans to reopen Urban Bank under its management 30
days after the approval of the rehabilitation by the
Monetary Board, the policy making body of the Bangko
Sentral (Central Bank of the Phils.), or by the first week
of September at the latest.

Aside from Urban Bank, Bancommerce is working out a merger
with the Benedictos' Traders Royal Bank (TRB). The union
with TRB has been ongoing for more than a year now.
Bancommerce also plans to acquire the Tan Yu's Panasia
Banking Corp. (Panbank). (Business World  17-July-2000)


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

POLWOOD FOREST INDUSTRI: Faces lawsuit for unpaid debt
PT POLYUB SWADAYA UTAMA: Faces lawsuit for unpaid debt
------------------------------------------------------
Japanese owned Irie Lumber Pte Limited and Century Wood
Product Pte Ltd of Singapore have filed a bankruptcy
lawsuit against businessman Kim Johanes and business
associate Adi Gunawan for failure to service matured debts
worth 1.2 mln usd.

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  11-July-2000)


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