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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 19, 2000, Vol. 3, No. 139

                                      Headlines


* A U S T R A L I A *

NATIONAL AUSTRALIA BANK: Shares fall over lawsuit defense
SPIKE NETWORKS: To lose $27M, three founders
TELESTRA CORP: To lose $500M contract


* C H I N A  &  H O N G  K O N G *

OVERSEAS UNION TELECOMM.CO.LTD: Facing winding up petition
PETER CHEUNG SURVEYORS LTD: Facing winding up petition
SINCERE BEST DEVELOPMENT LTD: Facing winding up petition
SINOLINK MOBILE COMMO.: Parent decides to liquidate
SIU KIN & COMPANY LTD: Facing winding up petition
STABLE GAIN DEVELOPMENT LTD: Facing winding up petition
SUNDER DEVELOPENT LTD: Facing winding up petition
SUNDER INT'L LTD: Facing winding up petition
TAKE RING DEVELOPMENT LTD: Facing winding up petition
TELEFORTUNE DEVELOPMENT LTD: Facing winding up petition
TOP EASE DEVELOPMENT LTD: Facing winding up petition
TOP KEY DEVELOPMENT LTD: Facing winding up petition
YAOHAN HONGKONG: Liquidators told to dig into own pockets


* I N D O N E S I A *

PT BANK BALI: Former owner settles, drops suit
PT BANK BALI: Gov't to recapitalise it after settlement


* J A P A N *

HASEKO CORP.: Leading construction industry in debt
KUMAGAI GUMI CO.: Leading construction industry in debt
SEIYO CORP: Debt burden sinks big property developer
SHIMIZU CORP.: Leading construction industry in debt
SOGO CO.: Cerberus may be interested in it, too


* K O R E A *

DAEWOO GROUP: KAMCO buys/settles 18.5T won of its bonds
HYUNDAI GROUP: FTC to investigate subsidiaries
KOHAP: To post 36B won loss despite increased sales
LG GROUP: FTC to investigate subsidiaries
SAMSUNG GROUP: FTC to investigate subsidiaries
SK GROUP: FTC to investigate subsidiaries


* M A L A Y S I A *

GULA PERAK BHD: To issue RM248.43M in notes to settle debts
MALAYAN BANKING BHD: Philio Allied rejects merger offer
MOCCIS TRADING SDN: MARC puts it on credit watch


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

MONDRAGON INT'L PHIL.: Signs P650-M loan deal
NATIONAL STEEL CORP.: SEC extends debt reprieve by 30 days
PHILIPPINE NAT.BANK: Gov't cuts share price pre-2nd auction
UNIWIDE SALES: BPI to make new proposal to ease debt burden
WESTMONT INVEST.CORP.: Pearlbank offers to junk lawsuit


* S I N G A P O R E *

SOGO SINGAPORE: Seeks help for restructuring


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

NATIONAL AUSTRALIA BANK: Shares fall over lawsuit defense
---------------------------------------------------------
Shares in National Australia Bank are expected to weaken
further as it defends a $30 billion damages claim in the
NSW Supreme Court.

The bank's shares have fallen more than 12 per cent over
the past two weeks to close 40c weaker at $24.95 yesterday.
The stock reached a 12-month high of $27.90 on June 30 but
was subsequently sold down after Ord Minnett analyst Brian
Johnson downgraded the stock from a buy to a hold and
lowered his full-year earnings outlook for the bank.

Analysts also fear NAB is taking risks by seeking a large
offshore acquisition and faces a weak banking sector in the
UK, where it has about 25 per cent of its operations.
While the court case starts next Monday, NAB will not get a
chance to respond to the plaintiff's argument for the first
two weeks.

"In the absence of any news there is potential for further
weakness in the short term," an analysts who wished to
remain anonymous said.  "The sell-down would not be unusual
trading activity ahead of the court case, where there could
be an opportunity to pick up the stock at better value.
It's come off about 10 to 15 per cent, it could come off
another five," the analyst said.

The Australian Market Automated Quotation System case
involves a damages claim ranging from $US271 million ($463
million) to $US21 billion bought against NAB by Idoport and
Market Holdings, both companies controlled by computer
systems developer John Maconochie.  Mr Maconochie claims
the bank wrongly appropriated intellectual property
relating to the trading settlement and clearing technology
system of Ausmaq.

He also claims that he has a right to a proportion of the
earnings generated from the use of Ausmaq.  NAB has
rejected the allegations and has filed a cross claim
against Idoport and Market Holdings alleging they had
certain information about Ausmaq which they failed to
disclose at the time the bank bought the system. (The
Australian  18-July-2000)

SPIKE NETWORKS: To lose $27M, three founders
--------------------------------------------
Web designer Spike Networks will next Monday mark its first
birthday as a listed company, after losing $27 million and
its three founders.

Spike yesterday disclosed it would report a loss of about
$27 million for 1999-2000, more than four times the $6
million forecast in its prospectus. The losses stem mainly
from abandoning operations in the United States and its
repositioning from the global youth market to the Asian
corporate online services market.

Spike co-founder Ruby Blessing, who left the company last
September, said: "The projections were overly optimistic.
It was easy to be optimistic when there was a lot of cash
around. The projections were based on blue sky ... it was
like all reasonable business practices flew out the
window."

Spike's share price has tumbled 76 per cent from its high
of $3.99 on February 22. Its share price fell three cents
yesterday to 96 cents, well below its $1.45 issue price.
According to its prospectus, the company expected revenue
of $20.4 million, or annualised revenue of $25.4 million
for the second half to December. However, it only managed
$17 million.

Spike also fell short of its June 30 cash reserve forecast
of $29 million, despite receiving a $6.3 million injection
from Richard Li's Pacific Century CyberWorks, which
acquired 5 per cent of the company.  Spike spent $28.5
million in the nine months to March, while generating $10
million.

Spike chairman John McGuigan, a former lawyer and one of
Spike's earliest and largest shareholders, has had a tough
time since taking charge of the company at the beginning of
the year.  On April 17, Mr McGuigan was forced to sack
Spike co-founder Chris O'Hanlon, amid sexual harassment
allegations, which resulted in a $US750,000 payout.

Mr O'Hanlon's departure followed the failure of his US
strategy which included a Web design business and an online
radio station, SpikeRadio.  US operations were to have
accounted for almost 50 per cent of Spike's revenues.
But only 27 per cent of revenues came from the US in the
second half of last year.

That is likely to fall significantly for the full year as
the company has closed its US Web design operation and
SpikeRadio has failed to reach its expected revenue of $5.4
million.  Closure of the US services business partly
prompted the Australian Stock Exchange and the Australian
Securities & Investments Commission to seek clarification
from Spike. However, a Spike statement said yesterday there
was no investigation by ASX or ASIC "into the affairs or
activities of the company."  (Australian Financial Review
18-July-2000)

TELESTRA CORP: To lose $500M contract
-------------------------------------
Telstra is about to lose its grip on one of the biggest
non-government telecommunications accounts in Australia, as
the Commonwealth Bank is on the verge of appointing Telecom
New Zealand as its telecommunications gatekeeper.

The Commonwealth Bank is in final negotiations with Telecom
New Zealand on what the bank's technology head, Russell
Scrimshaw, describes as a "very significant" deal.

"It's a contract that we expect to be in excess of $500
million over the next five years," he said.  "We are one of
the largest telecommunications users in Australia."

Mr Scrimshaw says the decision reflects the current
maturity of the local telecommunications market.
"Australia has now deregulated sufficiently that there is
more than one provider who can guarantee to deliver all of
the services that a big corporation requires," he said.

The bank will still have relationships with other service
providers, but they will be managed by Telecom New Zealand
in a move the bank hopes will reduce its telecommunications
costs by around 20 per cent.  (ABC News Online  18-July-
2000)


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

OVERSEAS UNION TELECOMM.CO.LTD: Facing winding up petition
----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 30 on the petition of The
China State Bank Limited for the winding up of Overseas
Union Telecommunication Company Limited. A notice of legal
appearance must be filed on or before August 29.

PETER CHEUNG SURVEYORS LTD: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 30 on the petition of The
China State Bank Limited for the winding up of Peter Cheung
Surveyors Limited. A notice of legal appearance must be
filed on or before August 29.

SINCERE BEST DEVELOPMENT LTD: Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 2 on the petition of
Lodsin Consultants Limited for the winding up of Sincere
Best Development Limited. A notice of legal appearance must
be filed on or before August 1.

SINOLINK MOBILE COMMO.: Parent decides to liquidate
---------------------------------------------------
Leader Universal Holdings Bhd said the board and
shareholders of Leader's Hong Kong unit, Sinolink Mobile
Communications Ltd, on July 18 decided to liquidate
Sinolink.  (AFX News Limited  18-July-2000)

SIU KIN & COMPANY 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
China State Bank Limited for the winding up of Siu Kin &
Company Limited. A notice of legal appearance must be filed
on or before August 15.

STABLE GAIN DEVELOPMENT LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 2 on the petition of The
Yin Nin Savings, Mortgage Loan and Land Investment Company
Limited and Darfield Development Limited for the winding up
of Stable Gain Development Limited. A notice of legal
appearance must be filed on or before August 1.

SUNDER DEVELOPENT 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 Sunder Development Limited. A notice of legal
appearance must be filed on or before August 15.

SUNDER 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 Sunder International Limited. A notice of
legal appearance must be filed on or before August 15.

TAKE RING DEVELOPMENT LTD: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 2 on the petition of
Meloworld Limited for the winding up of Take Ring
Development Limited. A notice of legal appearance must be
filed on or before August 1.

TELEFORTUNE DEVELOPMENT 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
Drinkwater Investment Limited, Sandra Investment Limited,
Vignette Investment Limited for the winding up of
Telefortune Development Limited. A notice of legal
appearance must be filed on or before August 22.

TOP EASE DEVELOPMENT LTD: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 2 on the petition of
Golden Square Properties Enterprises Limited (formerly
known as Golden Square Enterprises Limited) for the winding
up of Top Ease Development Limited. A notice of legal
appearance must be filed on or before August 1.

TOP KEY DEVELOPMENT LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 2 on the petition of
Donora Company Limited for the winding up of Top Key
Development Limited. A notice of legal appearance must be
filed on or before August 1.

YAOHAN HONGKONG: Liquidators told to dig into own pockets
---------------------------------------------------------
Ernst & Young has been ordered by a judge to pay creditors
of retailer Yaohan Hongkong out of its own pocket as
punishment for "unfair" and "unreasonable" conduct by
liquidators.

The Big Five accountancy company and its legal adviser -
Stephenson Harwood & Lo - will need to hand over half the
fees and legal disbursements incurred in the Yaohan
restructuring to creditors.

"This may appear to be draconian," Mrs Justice Doreen Le
Pichon said, "but faced with what can only be a deliberate
refusal to pay heed to applicable legal principles, I have
little choice."

Ernst & Young said yesterday it is studying the judgment,
and will take legal advice.  The judge attacked liquidators
for offering Yaohan shareholders an inflated "sweetener" in
return for their support of a scheme - a move she claims
effectively cost creditors of the collapsed retailer HK$5
million.  The scheme is part of an arrangement between Asia
Standard Hotel Group, Asia Standard International Group,
Yaohan and the liquidators.

Yaohan went into voluntary liquidation in February 1998
amid debts of HK$91 million owed to creditors. However, as
yet undetermined proofs of debt could put the figure as
high as HK$1.1 billion.  As the company has no real assets
its real value lies in Yaohan's listing status. Asia
Standard Hotel agreed to pay HK$9.5 million and issue 2.42
million shares of 10 HK cents each for the benefit of
Yaohan creditors.

Under a scheme of arrangement, Yaohan shareholders are to
receive 20 shares of 10 HK cents each in Asia Standard for
every 2,000 shares of 25 HK cents in the retailer. In
realising this listing status, the liquidators split its
value between shareholders and creditors in the ratio of
33:67.  After up to nine months, the last step in the
process is to achieve shareholder approval.

Mrs Justice Le Pichon said she "took pains to expand upon
the meaning" of a "token consideration" or "sweetener". "I
intimated that a payment of about 5 per cent would almost
certainly fall within that description."   She remarked
yesterday however "by no stretch of the imagination can 33
per cent of the net consideration be regarded as 'token' ".

The loss to creditors, had the shareholders been offered
only 5 per cent, ranges between HK$5.6 million to HK$5.9
million, she said. "In other words, over HK$5 million has
been given away to the shareholders by the liquidators at
the expense of the creditors."

She moreover contends that the committee of inspection was
given an "incomplete and inaccurate" explanation of how the
minimum amount was ascertained.  Mrs Justice Le Pichon also
stressed that even if the shareholders had voted against
the scheme, the court has the power to approve it. "It
would appear that the liquidators were more jealous of the
interests of the shareholders than those of the creditors,"
she ruled.

This left the court in an "embarrassing position", she
continued.  "In effect, I am asked to make a commercial
decision when the proper parties to do so are the
creditors."

Without the scheme, however, creditors would receive no
dividend. As it stands, they can expect between 1 and 15
per cent, depending on the ultimate debt.

"The court is left in the invidious position of having to
sanction the scheme notwithstanding the loss to the
creditors as a result of the unfair and unreasonable
apportionment agreed to by the liquidators," the judge
said. Some sort of sanction is thus necessary to "drive the
message home" to the liquidators and legal advisers.

The liquidators stand to receive a sum capped at HK$3
million from the investor. By depriving them of part of the
cash, "this will in some measure compensate the creditors
for the loss sustained", Mrs Justice Le Pichon ruled.
She sanctioned the scheme on the undertaking that Ernst &
Young pay half of the liquidator's own profit costs and
half the legal disbursements incurred to the creditors.
(South China Morning Post  18-July-2000)


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

PT BANK BALI: Former owner settles, drops suit
----------------------------------------------
Rudy Ramli, whose family controlled PT Bank Bali before the
lender was nationalized last year, said he reached a
surprise agreement with the Indonesian government to pump
fresh capital into the lender.

The pact includes a pledge by Ramli to drop a legal suit in
which he contested the government's takeover of the bank.
In exchange, the government agreed to finance the estimated
5 trillion rupiah ($526 million) cost of recapitalizing the
bank through a public rights offering.

"All things are settled," Ramli told reporters outside the
offices of Kwik Kian Gie, Indonesia's coordinating minister
for the economy, finance and industry.

The dispute between Ramli and the government over the
future of Bank Bali had become a symbol of the challenges
facing Indonesia as it recovers from the financial crisis
of 1997 and 1998, when the rupiah lost more than two thirds
of its value against the U.S. dollar and interest rates
soared.

Legal wrangling over the nationalization also caused the
cost of recapitalizing the bank to rise, exacerbating the
damage the lender caused by bad loans. Fresh capital to
revive Bank Bali would have cost 4.6 trillion rupiah if the
recapitaization had been completed in June.

Agreement between the government and Ramli comes one
trading day after the Jakarta Stock Exchange suspended Bank
Bali shares after they fell 44 percent Friday to 100
rupiah.  Bank Bali shares plummeted after Anwar Nasution, a
senior deputy governor of Bank Indonesia, the central bank,
said the central bank didn't have enough money to save the
bank.

His comments came after the government handed off
responsibility for Bank Bali to the central bank, a move
some saw as foreshadowing the bank's demise.  In exchange
for dropping his law suit, Ramli will get 9 billion rupiah
from the government to cover legal expenses, the central
bank said. The government will also act as a buyer of last
resort for the planned rights offer.

"Rudy Ramli has agreed to meet the requirements," Kwik
said.

Bank Bali catapulted to international fame last year when
it became embroiled in a corruption scandal involving the
payment of 546 billion rupiah to a company controlled
Golkar, the country's ruling party at the time.  The bank
also made headlines when Standard Chartered Plc, a U.K.-
based bank, withdrew a plan to acquire control of the bank
after protests from Bank Bali's Indonesian employees and a
smear campaign directed at the British bank and its
executives in Indonesia.

In the last two years the Indonesian Bank Restructuring
Agency has closed 65 banks, nationalized 13, recapitalized
seven, and is merging four of the country's seven state
banks.  Restructuring the banking industry is the main
focus of the International Monetary Fund's economic reform
program.  (Bloomberg  18-July-2000)

PT BANK BALI: Gov't to recapitalise it after settlement
-------------------------------------------------------
The Indonesian government has decided to recapitalise PT
Bank Bali after the bank's former owner and president Rudy
Ramli agreed to meet all conditions set by the government,
Coordinating Minister for Economy, Finance and Industry
Kwik Kian Gie said yesterday.

Mr Kwik said the decision was made after the Financial
Sector Policy Committee met Mr Ramli yesterday. He did not
give further details.  Separately, Mr Kwik said the
country's next letter of intent to the International
Monetary Fund should be signed in several days.  He added
there would be no problem meeting the reform pledges in the
current letter, although several items were not finished
yet.

In January, Indonesia agreed a new US$5 billion (S$8.7
billion) three-year loan deal with the IMF. Before each
tranche is disbursed, the country must pass an IMF review.
The next US$400 million tranche is expected in August.
(Business Times  18-July-2000)


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

HASEKO CORP.: Leading construction industry in debt
KUMAGAI GUMI CO.: Leading construction industry in debt
SHIMIZU CORP.: Leading construction industry in debt
-------------------------------------------------------
Despite a nearly 183 billion yen drop in the total
aggregate interest-bearing liabilities of some 117 major
Japanese construction firms in fiscal year 1999, the 9.6
trillion yen total still remains cause for alarm.

That's according to a report issued Monday by Teikoku
Databank Ltd., showing the total such debt dropping 1.9
percent from the prior year's total. According to an
official of the firm, the construction companies likely
will face increased interest rate hike(s) in the near
future as a result.

Leading the pack for the second conseuctive year was
Kumagai Gumi Co. with 889 billion yen, up 8.4 percent from
the prior year; second was Haseko Corp. at 736.3 billion
yen, up a staggeriing 63.6 percent; third was Shimizu Corp.
with debt of 593.6 billion yen -- down 11.3%.

SEIYO CORP: Debt burden sinks big property developer
----------------------------------------------------
Seiyo Corp., the real estate development arm of Japan's
Saison Group, filed for liquidation Tuesday with a debt
load totaling 517.5 billion yen ($4.79 billion).

The filing took place less than a week after department
store giant Sogo Co. filed for court protection with
liabilities totaling 1.87 trillion yen. Both companies
experienced rapid expansion in the economically booming
1980s, while incurring investment debts that soured when
land and property prices dived in the 1990s.

Founder of Saison Group Seiji Tsutsumi has pledged to
provide some 10 billion yen in personal funds to go towards
outstanding debts. In addition to real estate, Saison Group
owns a variety of companies, including retail stores,
hotels and credit card services. Subsidiary Seiyo Corp.
once was the proud owner of the Old Course Hotel in St.
Andrews, Scotland, self-proclaimed home of golf.

Saison Group had been working on an agreement with seven
creditors, led by Dai-Ichi Kangyo Bank Ltd., seeking a
resolution of Seiyo's debt problems in the process. The
creditors and Saison last met Tuesday, reaching agreement
on a restructuring plan by which the group was to assume
100 billion yen in losses related to Seiyo's liquidation,
while 46 of Seiyo's lenders will cover about 340 billion
yen of the debt.

The rehab pact also provides that other Saison units -
among them supermarket chain operator Seiyu Ltd. and
consumer credit company Credit Saison Co. -- will purchase
Seiyo's assets. Securitizing Seibu Department Stores' shops
will also be consdered, according to company executives.

SOGO CO.: Cerberus may be interested in it, too
-----------------------------------------------
The Cerberus Group, a private U.S. equity fund that has
already made an offer to buy the collapsed retail chain
Nagasakiya, may also be interested in the failed department
store chain Sogo Co.

That was the indication Monday when the president of the
Industrial Bank of Japan refused to rule out the
possibility of selling Sogo to Cerberus.  Masao Nishimura
was replying to a question at a meeting of the House of
Representatives Finance Committee, called to discuss Sogo's
failure and the government's handling of the situation. The
IBJ is Sogo's biggest creditor.

Asked about speculation that Cerberus is poised to buy
Sogo, Nishimura said he has no definite information about
the group's intentions.  But he also said it is necessary
to support Sogo no matter where its new sponsor comes from.
Nishimura also told the session that the IBJ will urge
former Sogo Chairman Hiroo Mizushima to take responsibility
for the repayment of some 10 billion yen in loans the bank
provided to Sogo that Mizushima had guaranteed.

Nishimura indicated that the bank may file an application
seeking Mizushima's bankruptcy, if necessary.  The
controversial bailout scheme for Sogo attracted harsh
criticism from opposition parties during the session.
The session centered on whether it was appropriate for the
government to approve the use of public funds to bail out
the Osaka-based department store chain, while strong
concern was expressed over the possibility that Sogo's case
may serve as a bad example to the private sector.

Under the initial bailout plan, which was eventually
scrapped, Sogo had planned to rebuild its business by
asking its 73 creditors to waive 630 billion yen in loans.
Yoshio Suzuki of the Liberal Party criticized the
government's decision to allow the Deposit Insurance Corp.,
a semigovernmental body, to forgive 97 billion yen of the
200 billion yen in loans to Sogo as part of the original
bailout scheme, saying that the decision was shortsighted.

"Repaying debts is a principle of the market economy,"
Suzuki said. "All small and medium-size companies do that."

The DIC, a banking safety net, agreed with a private-sector
consortium -- which bought the defunct Long-Term Credit
Bank of Japan -- to buy 200 billion yen in LTCB loans to
Sogo.  Kimitaka Kuze, chairman of the Financial
Reconstruction Commission, emphasized that the bailout plan
was the best option at that time from a viewpoint of
minimizing the cost to taxpayers. Kuze repeated that the
FRC would be very cautious if it faces a case similar to
the Sogo debacle in the future.

Last week, Sogo applied for court-managed rehabilitation
after the original, debt-waiver-based reconstruction plan
was scrapped due to fierce public criticism. The Sogo group
is burdened with 1.87 trillion yen in debts.  Sogo reached
the decision after LDP policy affairs chief Shizuka Kamei
asked the bank to do so on behalf of the LDP-led coalition.
During the afternoon session, DIC head Noboru Matsuda said
his organization will not annul a controversial clause it
made in the sale of the LTCB that requires the DIC to buy
back loans at book value if the loans fall by more than 20
percent in three years.

Yoshito Sengoku of the Democratic Party of Japan strongly
criticized the Cabinet, which reportedly approved the FRC's
decision.  Among other issues deliberated during the
session was the responsibility of Mizushima, who governed
the Sogo group for 38 years, and the issue of the FRC's
political independence in handling Sogo's case. (The Japan
Times Online  18-July-2000)


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

DAEWOO GROUP: KAMCO buys/settles 18.5T won of its bonds
-------------------------------------------------------
Korea Asset Management Corp has completed the purchase and
settlement of 18.5 trln won of unsecured bonds issued by
Daewoo Group from 23 investment trust companies, paying 35
pct of the face value and becoming the largest creditor of
the near-insolvent group, KAMCO said in a statement.

The 18.5 trln won of unsecured debt owed by Daewoo's 12
units placed under debt workout programs represents 29.4
pct of 62.6 trln won in total Daewoo domestic debt subject
to debt workout plans, it said.  Once KAMCO completes the
purchase of another 4 trln won of secured Daewoo commercial
paper from 38 local financial institutions and 6 trln won
of foreign debt, KAMCO's holdings of Daewoo debt will rise
to 28.5 trln won, or 42 pct of the total 68.6 trln won of
Daewoo domestic and foreign debt subject to debt
rescheduling plans, KAMCO said.

KAMCO plans to dispose of the purchased debt through issues
of asset-backed securities, and direct sales of the
liabilities at discount.  (AFX News Limited  18-July-2000)

HYUNDAI GROUP: FTC to investigate subsidiaries
LG GROUP: FTC to investigate subsidiaries
SAMSUNG GROUP: FTC to investigate subsidiaries
SK GROUP: FTC to investigate subsidiaries
----------------------------------------------
The Fair Trade Commission (FTC) will launch an
investigation next month into subsidiaries of the four
largest business groups - Hyundai, Samsung, LG and SK - for
possible unjust financial support and other unfair
practices.

The commission said July 17 that it decided to investigate
the subsidiaries of these groups since 30 subsidiaries of
the four groups accounted for 57.7% of the total assets of
the top 30 Korean business groups, thus comprising the crux
of chaebol restructuring.

As the commission has recently completed a field probe of
seven groups ranking below the above-mentioned four
business groups -- including Lotte and Kumho -- for unjust
internal transactions, the commission plans to start the
investigation of the top four groups in late August or
early September after summer vacation ends.

Director of the Secretariat Kim Byung-il of the FTC said
"The FTC will investigate to find whether the four groups
provided support unfairly to subsidize or conduct internal
trading under the guise of venture business and use it as a
means of owners' inheritance."

Between 1998 and 1999, these four groups owned 454
subsidiaries, accounting for 88.7% of the 30 major groups'
512 subsidiaries.  In addition, the commission will conduct
an investigation of public corporations for unjust
international trading, beginning in October.  (Digital
Chosun  17-July-2000)

KOHAP: To post 36B won loss despite increased sales
---------------------------------------------------
Kohap announced Sunday that it had achieved a 51% increase
in sales up to W602.7 billion for the first half of the
year, but would post losses of W36 billion due to
depreciation costs of W120 billion.

The company was accepted onto the workout program in 1998
when it had debts of W5 trillion, but only achieved 60% of
its targets under the plan by December last year. Creditor
banks, therefore swapped an additional W1.8 trillion of
debt for equity, however the company's debt burden
continued to worsen from the then W2.7 trillion to W3.3
trillion at the end of June.

Kohap had said that it would raise W132.5 billion in the
first half but at the start of June had only achieved 1.6%.
It boosted this at the end of the month to 86% by selling
shares in communications companies. Analysts say that the
outlook for the petrochemical company is not good due to
rising oil prices and fierce domestic competition. They
point out as debt exceeds sales by five times the company
has to be bolder in restructuring if it is to survive.
(Digital Chosun  17-July-2000)


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

GULA PERAK BHD: To issue RM248.43M in notes to settle debts
-----------------------------------------------------------
Gula Perak Bhd has proposed to issue RM248.43 million
nominal value five-year redeemable convertible secured
notes (RCSN) under its debt-restructuring scheme, the
company says today.

It says the much-reduced income and cash flow from its
hotel and property division, deferment of some of its
projects and longer collection of debts have seriously
affected its ability to repay the principal and service the
interest on its revolving credit facility and term loans.
Gula Perak's debts include RM154.50 million bank guarantee
facilities and interest up to Dec 31, 2000, upon the
invocation of the bank guarantee together with the bank
guarantee fees of RM2.70 million pursuant to the RM150
million nominal amount of 1995/2000 redeemable guaranteed
bonds.

Its other debts include a RM25 million revolving credit
facility together with the interest up to Dec 31, 2000, and
a RM21 million syndicated term loan together with the
interest up to Dec 31, 2000.

In a statement to the Kuala Lumpur Stock Exchange today,
Gula Perak says the restructuring scheme, which includes
the RM248.43 million RCSN, would in turn entail the lenders
offering the notes to Gula Perak shareholders on a non-
renounceable basis at an offer price of about 84.4 sen per
RCSN.

The proposed restricted offer of sale will not be
underwritten. Any unsubscribed RSCN will be retained by the
lenders. The RM1 RSCN can be redeemed at RM1.05 -- a
premium of five sen -- upon maturity.  It can also be
converted into new Gula Perak shares with the rate
tentatively fixed at RM1.20 nominal value of RCSN for each
new Gula Perak share or those determined by the Securities
Commission.

At the request of the lenders, Gula Perak managing director
and substantial shareholder Datuk Lim Cheng Pow will grant
them a put option whereby they shall have the right to sell
to him a total of RM47.8 million RCSN or whatever amount of
the notes retained by them after the proposed restricted
offer for sale.

Simultaneously, the lenders will grant Lim a call option
whereby he shall have the right to purchase from them a
total of RM47.8 million RCSN or whatever amount of the
notes retained by them after the proposed restricted offer
for sale, whichever is of lower value, proportionately from
all lenders.

Under the scheme to settle the debts, the RM248.43 million
RCSN will comprise:  The issuance of RM186.99 million RCSN
to settle RM157.65 million due to guarantor banks;
The issuance of RM32.38 million RCSN to settle the RM27.3
million due to the revolving credit lenders; and
The issuance of RM29.06 million RCSN to settle the RM24.45
million due to the term loan lenders. (The Edge  14-July-
2000)

MALAYAN BANKING BHD: Philio Allied rejects merger offer
-------------------------------------------------------
Malaysia's Phileo Allied Bhd. said Monday that its
shareholders had rejected as inadequate the proposed merger
offer by the country's biggest bank Malayan Banking Bhd.
(Maybank).

Phileo said its key shareholder Avenue Asset Bhd. --
controlled by Mirzan Mahathir, a son of Prime Minister
Mahathir Mohamad -- felt that Maybank's merger scheme
"substantially undervalues" the company.  In addition, the
merger offer also did not offer a cash alternative in
exchange for Avenue's 18.5 percent stake in Phileo, it said
in a statement to the stock exchange.

The scheme, which would be effected through a section of
the Companies Act which is designed for ailing companies,
carried "an unsavoury connotation that (holding company)
Phileo Allied and (its subsidiary) Phileo Allied Bank are
financially insolvent," the company said.

"(Avenue Assets) would question the wisdom of invoking a
section that... has been used to rescue bankrupt
companies," it said, adding that the offer should have been
made under the takeovers and mergers code.

On June 30, Maybank and Phileo Allied signed an agreement
for a proposed merger between their commercial banking and
stockbroking businesses.  The merger would involve a share
swap, whereby Maybank would exchange one new share at 15
ringgit (3.95 dollars) for every six Phileo shares valued
at 2.50 each.

But Phileo said Monday the 15 ringgit share price
represented nearly three times Maybank's net tangible
assets and a price-earnings ratio that was much higher than
that assigned to Phileo.

"(Avenue) believe their board has a fiduciary duty to the
shareholders to obtain the best possible price for their
shares and regrettably believe that Maybank's offer would
not satisfy that criteria," it added.

Malaysia's 54 banks and finance houses have until year-end
to merge into 10 groups under a consolidation program
announced by the central bank last year.  (Agence France
Presse  17-July-2000)

MOCCIS TRADING SDN: MARC puts it on credit watch
------------------------------------------------
Malaysian Rating Corporation Bhd (MARC) today placed the
"DID" rating of MOCCIS Trading Sdn Bhd's RM50-million (US$
13.2 million) Islamic (Al-Bai Bithaman Ajil) Debt
Securities on MARCWatch with developing implications.

In a statement here, the rating agency said MOCCIS, which
provided financing for a wide range of consumer products,
had on June 24 this year failed to make a scheduled payment
of RM2.9 million on its maturing secondary notes.  MARC
then downgraded the company's debt rating to "D ID" for
failure to make timely scheduled payment on the instrument
under the Islamic financing contract.

However, MOCCIS settled the amount in two payments of RM1
million on June 28 and the balance of RM1.9 million on July
4.  MARC said it would continue to review the rating to
assess MOCCIS's ability to meet its future debt service
obligations on a timely basis.  It said the MARCWatch
listing would be resolved at the conclusion of the
review.  (Asia Pulse  17-July-2000)


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

MONDRAGON INT'L PHIL.: Signs P650-M loan deal
---------------------------------------------
An investment company has agreed to arrange for a P650-
million loan to beleaguered Mondragon International
Philippines Inc. (MIP), paving the way for the company's
return as the manager and operator of the Mimosa Leisure
Estate in Clarkfield, Pampanga.

The news comes in the wake of reports that Sultan Haji
Hassanal Bolkiah of Brunei is set to take over the leisure
estate and infuse P2 billion in fresh capital into the
cash-strapped company.  MIP announced yesterday that it has
signed a memorandum of agreement with PentaCapital
Investment Corp. and the MIP subsidiary, Mondragon Leisure
and Resorts Corp. (MLRC).

Under the agreement, MIP said MLRC would enter into a new
management agreement with PentaCapital whose nominee would
take over the management of MLRC in preparation for the
possible entry of new investors.  According to MIP,
PentaCapital has agreed to arrange a fully-secured, last
in/first-out (LIFO) loan of up to P650 million to be used
by MLRC to pay the compromise back rentals and levies with
the Clark Development Corp. and the Philippine Gaming and
Amusement Corp. (Pagcor).

A LIFO loan assures PentaCapital that its loan would be the
first to be settled should MLRC run into fresh financial
problems and in the event of a foreclosure.  Part of the
amount will be used to settle unpaid obligations to the
Bureau of Internal Revenues and working capital to put MLRC
back in operation.

MIP said PentaCapital also agreed to negotiate with CDC,
Pagcor, the BIR and various creditors on behalf of MLRC for
softer terms of its existing agreements.  CDC had earlier
shut its does on MLRC and said it preferred to open the
Mimosa Leisure Estate to another partner who would invest
or manage the operations of the 250-hectare resort complex.
CDC, the government unit overseeing the operations of the
Clark Special Economic Zone in Pampanga, seized control of
the Mimosa Leisure Estate in December 1999.

The STAR reported earlier that the Sultan of Brunei was
interested in the leisure estate and that Mondragon
president Jose Antonio Gonzalez was "90 percent sure" that
the monarch would infuse money into the venture.
Aside from Bolkiah, businessman Antonio (Tony Boy)
Cojuangco had also expressed interest in the facility.
(Philippine Star  19-July-2000)

NATIONAL STEEL CORP.: SEC extends debt reprieve by 30 days
----------------------------------------------------------
The Securities and Exchange Commission (SEC) has extended
by another 30 days the debt-moratorium of National Steel
Corp. (NSC) and expects to give the go-signal to the steel
maker's rehabilitation plan within the said period.

Despite the minority opposition to the firm's
rehabilitation, the commission is optimistic that the
firm's proposed financial recovery plan will be approved
within the next 30 days, a hearing officer assigned to the
NSC case said yesterday.

So far, only two creditor banks -- Security Banking Corp.
and Equitable PCI Bank -- have formally expressed
opposition to the steel maker's rehabilitation proposal,
while some have given their conditional okay.

In a recent motion, China Banking Corp. said its approval
of NSC's proposed rehabilitation plan would depend on the
entry of a strategic investor.  Considering the serious
negotiations between Dutch firm Ispat International NV and
the local steel-maker, the SEC is confident NSC will get on
the good side of its creditors.

Ispat was recently reported to have placed $100 million as
initial deposit for NSC as part of its efforts to acquire
the debt-stricken steel maker. In a letter to the SEC, HSBC
Corp. confirmed that the said amount was deposited in an
escrow account.

"NSC is in the threshold of being rehabilitated. (Ispat)
showed me a copy of documents certifying their payments,"
Finance Secretary Jose T. Pardo said earlier.

Mr. Pardo said Ispat should first show to the government
that it has enough funds to purchase a controlling stake in
NSC before it starts talking with the owners.  The
Philippine government formally owns 12.5% of the
beleaguered firm. In 1995, the government sold majority
interest to Malaysian firm Wing Tiek Holdings Berhad, which
later sold the shares to Hong Kong-based Hottick
Investments Ltd.

Among the conditions for the purchase set by Ispat is for
the government to press for antidumping protests on the
import of Russian steel goods. It also wants the government
to set tariff rates at a minimum. Ispat also wants NSC to
work out a new credit restructuring scheme for the steel
firm's 16-billion-peso (US$360 million at
PhP44.543:US$1)debt.

Under NSC's proposed rehab plan, PhP9 billion of its total
long-term debt will be retained, of which PhP7.9 billion
will be restructured into 10-year peso amortizing bonds,
and the remaining PhP1.1 billion in 10-year dollar
amortizing bonds, both at 12% coupon.  The rehab plan
further proposes to convert the remaining PhP7.5 billion
into equity, calling for the revaluation of the firm's
assets.

Meanwhile, industry sources earlier said NSC's creditor
banks should convert 85% of the nine-billion-peso loan into
equity to make the steel firm viable again.  As a result of
the proposed conversion, creditor banks will end up owning
70% of NSC while Ispat will have 30%. The remaining 15% of
the debt, meanwhile, will be restructured and will earn 5%
annual interest, the source said.

Half of the loans that will be restructured will have a 10-
year repayment term while the balance will have a 15-year
repayment plan.  In another development, the Philippine
National Bank (PNB) is said to be leading a group of NSC
creditors in its plan to reopen the firm's Iligan plant
with the group's plan to infuse $30 million in new capital,
install a new management team, and restructure the steel
giant's debt.

NSC suspended its operations in November last year due to
financial problems highlighted by its failure to repay
debts to 14 creditor banks. (Business World  18-July-2000)

PHILIPPINE NAT.BANK: Gov't cuts share price pre-2nd auction
-----------------------------------------------------------
The Philippine government cut the asking price for its
shares in Philippine National Bank on the eve of its second
attempt to auction 30 percent of the bad debt-ridden
lender.

Authorities are asking for a minimum 80 pesos per share,
said Finance Secretary Jose Pardo. That's down from a
target of 85 pesos, which was slashed from the 140 pesos
per share sought at a failed sale on June 9. The cut comes
a day ahead of a second auction and underpins the difficult
task of convincing investors there's value in the nation's
fourth-largest lender by assets.

The government must sell its stake to help plug this year's
budget deficit, projected at 62.5 billion pesos ($1.4
billion), and because of pledges to the International
Monetary Fund to get out of banking. A sale of a combined
80 percent stake by the government, tycoon Lucio Tan and
the PNB retirement fund failed because of a lack of
investor interest.

"The chances of a successful sale appear a lot better than
the first (auction)," said Patrick Pang, bank analyst at
Lehman Brothers Holdings Inc. in Hong Kong. "The government
is more realistic, the price seems more reasonable for
long-term investors."

Government officials said they're confident of finding
investors willing to take a non-controlling stake in an
unprofitable bank that has one of the highest levels of bad
debts in the industry. The bank is also about to sell as
much as 20 billion pesos worth of new shares -- leading to
a dilution in the shareholding of anyone who buys the
government's stake.

Buyers who pay cash can get the shares for 80 pesos per
share, a premium of 38 percent to Monday's closing price of
58 pesos. Buyers paying in installments will have to pay at
least 100 pesos per share.

"We want to do everything possible to encourage the success
of the bidding," Pardo said. "We want to attract as many
parties (as possible)."

Last week he said three potential buyers expressed interest
in the government stake.  Still, Philippine-American
businesswoman Loida Nicolas Lewis, who expressed interest
at the first auction, reportedly decided not to bid
Wednesday, and the government conceded Monday that she may
not bid for the stock.

"We have not been hearing from her lately," Finance
Undersecretary Cornelio Gison said. "At any rate the
bidding will push through and we will only know by then if
there will be bidders."

The sale comes as a long-running stock trading scandal and
a Muslim insurgency have scared investors. The Philippine
Composite Stock Exchange Index has fallen 36 percent in U.S
dollar terms this year, making it the world's fourth worst
performing benchmark index. Overseas investors sold more
shares than they bought in the first seven months of the
year.

"The government is showing flexibility to market
sentiments," Gonzalo Bongolan, research chief at PCCI
Securities Brokers Corp., said of the reduced asking price
for the PNB stake. "I doubt very much if this is enough."

Tan, who controls 46 percent of PNB, probably won't bid for
the government's shares because he's keeping his cash for
PNB's upcoming sale of new shares. Tan, who has interests
in beer, tobacco and airlines, has pledged to help PNB
raise at least 10 billion pesos in capital by September --
otherwise it faces seizure by the Bangko Sentral ng
Pilipinas, the central bank.

The IMF and the World Bank want the lender recapitalized as
soon as possible so its problems won't affect the stability
of the banking industry.  PNB lost 17 billion pesos in the
last two years, wiping out the profits it made from 1992 to
1997 and dragging its ratio of capital to risk-weighted
assets to 6 percent, less than the 10 percent standard set
by the central bank.

About 36 percent of its loans are non-performing, while
another potential turnoff for investors is the bank's 5.1
billion peso exposure to Tan's companies, including
Philippine Airlines, which owes the bank about $80 million.

"Tan has a very good track record in running his businesses
but he is untested when it comes to the equities market,"
Pang said. "There is still value in PNB (but) if he wants
to attract portfolio investors, he should increase
transparency and communicate more with the investing
public."

PNB, if successfully rehabilitated, may be of interest to
investors who want to have exposure to the Philippine
banking industry.

"A Philippine bank franchise is still attractive," Emilio
Neri, bank analyst at Abacus Securities, said. "The average
return on equity for the country's big banks is about 10
percent while the others in the region are only at 5
percent or less."

The bank has 324 branches in the Philippines and 74 offices
abroad, allowing the lender to corner a third of the money
sent home by the 5.5 million Filipinos working abroad. Last
year, those workers remitted about $3.1 billion through
PNB's network.

"A buyer must have a very long-term investment horizon,"
Neri said. "He must also be very optimistic about the
Philippines."  (Bloomberg  18-July-2000)

UNIWIDE SALES: BPI to make new proposal to ease debt burden
-----------------------------------------------------------
One of the major creditors of debt-ridden Uniwide Sales
Inc., -- Bank of the Philippine Islands (BPI) -- is still
opposing the company's loan restructuring and
rehabilitation plan although it is planning to recommend a
new package to ease its debt burden, sources told The STAR
yesterday.

"We have made some recommendations. We are proposing a new
package for the repayment plan for Uniwide," sources said.

The new proposal will be submitted to the BPI executive
committee within the week. It is possible, the sources
said, that the new proposal will pave the way for the
approval of the rehabilitation plan.  However, the sources
refused to divulge the details of the repayment plan. They
said Uniwide has not yet addressed the objections that were
raised earlier by BPI.

"We have not officially agreed on anything," sources said.
BPI's opposition to the rehabilitation plan of Uniwide is
further delaying the entry of the Casino Group of France,
which is interested in infusing $100 million into the firm.
Government officials, including Bangko Sentral Governor
Rafael Buenaventura, have been asking BPI to soften its
stand on Uniwide.

Sources said BPI, whose loan exposure is covered by
adequate collateral (mostly real estate properties) wanted
the other creditor-banks to buy its collateral as payment
for Uniwide's debts with the bank. But sources said the
other creditor-banks were cool to the idea.

Also, sources said the other creditors, including those who
extended clean loans (without collateral), wanted BPI to
join the group. The other creditors had insisted that BPI
should "take a lesser haircut" just like them. Sources said
this is something that BPI does not want to do, adding that
BPI should not be penalized for being conservative.

In an earlier statement to the Securities and Exchange
Commission, BPI voiced out some objections into the
rehabilitation plan including the following:
* A provision that would force BPI to surrender its first
mortgage liens or those properties used by Uniwide to
secure the loans.
* A provision calling for a 20-percent discount on cash
payment made by Uniwide and a waiver of interest charges
after June 30, 1999 and a complete waiver of penalties and
other contractual charges.

It is also opposing the move of the SEC to lump BPI
together with other creditors that are less secured than
the bank. This move, it said, is "most unfair and
unconscionable" and even illegal. It said some premium
should have been given to BPI given its superior liens over
other creditors.

As of Feb. 29, 2000, BPI had P943.323 million in loans to
Uniwide, including principal and interest. Uniwide had over
P10 billion in debts when it applied for debt relief and
rehabilitation with the SEC in June last year. It suffered
liquidity problems because of its overexposure in the
property sector.

Other major creditors of the firm include Equitable Bank
with P1.745 billion; Rizal Commercial Banking Corp., P1.645
billion; United Coconut Planters Bank, P1.043 billion;
Philippine National Bank, P833 million; Land Bank of the
Philippines, P677 million; and Allied Bank, P358 million
(Philippine Star  18-July-2000)

WESTMONT INVEST.CORP.: Pearlbank offers to junk lawsuit
-------------------------------------------------------
Pearlbank Securities Inc., one of the investors of Westmont
Investment Corp. (Wincorp), is offering to drop its legal
suit and claims against the troubled investment firm --
provided that Wincorp declares that the former has no more
outstanding loan obligations with Wincorp.

Pearlbank told the Securities and Exchange Commission (SEC)
that it is open to an amicable and reasonable settlement,
adding it has no other admissions other than those already
made in its previous pleadings. Pearlbank earlier sought
SEC intervention to resolve whether or not it has
outstanding loan obligations with Wincorp or any of its
investors.

Manuel Tan, Pearlbank chairman, charged Wincorp of fraud
and misrepresentation. Tan, formerly, also a Wincorp
director-stockholder with a 25 percent stake in the
investment firm, said in an P18-million lawsuit filed with
SEC, that Pearlbank was made to appear as a borrower in
several debt instruments issued by Wincorp to some of its
investors.

Pearlbank said, however, that it is willing to settle
amicably for as long as Wincorp agrees to categorically
declare the following: that Pearlbank incurred certain loan
obligations from Wincorp and not from the latter's
investors and that these obligations were fully offset
against Pearlbank's previous advances to Wincorp.

Wincorp should also agree that the P200 million credited to
the account of Pearlbank's sister company, Farmix
Fertilizers Inc., did not come from loans obtained by
Pearlbank, but was a payment by Wincorp for contract
receivables purchased from Bulk Handlers, another sister
company of Pearlbank.

Pearlbank had earlier claimed it was unwittingly named a
borrower when several of these investors wrote the
brokerage firm, asking for payment after Wincorp folded up
early this year.  (Philippine Star  19-July-2000)


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

SOGO SINGAPORE: Seeks help for restructuring
--------------------------------------------
Less than a week after its Japanese parent went belly up,
Sogo Singapore is believed to have sought the help of
independent accounting firm Ernst & Young to help
restructure its operations.

Sources said Sogo Singapore, which failed to renew the
lease on its flagship outlet at Raffles City two weeks ago,
is seeking external help following the collapse of its
parent.  Market-watchers yesterday said the move did not
come as a surprise, given the troubles that the entire
group was facing.

In fact, the appointment of Ernst & Young as advisers
mirrors the Yaohan experience three years ago.  In
September 1997, Yaohan Department Store was placed under
judicial management after massive debts forced its parent,
Yaohan Japan Corporation, to file for bankruptcy protection
in Japan.

Its judicial manager, and subsequent provisional
liquidator, was Ernst & Young.  Sogo, like Yaohan, is
expected to encounter difficulties operating as a going
concern now that its parent has filed for bankruptcy.
Last Wednesday, debt-ridden Sogo filed for court protection
in Japan after the government pulled the plug on a proposed
198 billion yen (S$3.2 billion) taxpayer-funded bail-out.

Sogo's total liabilities amounted to 689.1 billion yen at
the end of February, the company said then.  In the
aftermath of the Sogo debacle in Japan, Sogo operations in
various countries have started to examine their options.
In Hongkong, Sogo said it was looking for a partner to
share ownership of the 450,000 sq ft building now occupied
by its store and offices.

The building, located on one of the busiest corners in
Causeway Bay, a major shopping district in Hongkong, is
worth as much as HK$4 billion (S$893 million).  The sale,
if approved by Sogo's legal caretakers, would raise money
to help the company repay its 1.87 trillion yen of debt.
In Singapore, a shake-up is in place already.

Just two weeks ago, the local arm said it would vacate its
Raffles City premises by the end of this year because it
had failed to get its lease renewed.  The embattled
retailer has been operating at the centre for 14 years
since it was established under the 1985 joint-venture
agreement between Raffles City and Sogo Co of Japan.

In fact, Sogo Singapore itself expressed "grave
disappointment" at its shareholder's decision. When
contacted then, Sogo Singapore said it would re-examine its
position in Singapore.  Its general manager, Takeshi
Tsujita, said then that the company was keeping its 58,000
sq ft supermarket at the Paragon Shopping Centre, and it
was negotiating with the centre's management.

Asked whether Sogo planned to stay in Singapore, he said:
"We will have to review our position and further decisions
will be announced later. We will need some time to work out
the next steps."

Sogo is the anchor tenant at Raffles City, occupying
119,484 sq ft of retail space on four levels.  Its premises
will be taken over by retailers Robinsons and Jasons Market
Place by the second quarter of next year. Neither Sogo nor
its shareholders could be contacted last night.  (Straits
Times  19-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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