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

                            A S I A   P A C I F I C

             Monday, August 7, 2000, Vol. 3, No. 152

                                   Headlines


* A U S T R A L I A *

FONDSIDE AUSTRALIA: Company in receivership
LIBERTYONE: Affiliate collapse delivers another blow
PRICERITE GROUP: Annual net loss widens
REALESTATE.COM: Sacks 19 in bid to stay alive
SATELLITE GROUP: Lawsuits likely ahead
SATELLITE CORP: Gets cash, but facing receivership
ST GEORGE BANK: May axe 800 in revamp


* C H I N A  &  H O N G  K O N G *

CHENGDU TELECOMM.CABLE: Posts 6 mo. loss
NEW CHUAN KONG INVEST.CO.LTD.: Facing winding up petition
PRIMIO LTD: Facing winding up petition
PROKEY HOLDINGS LTD: Facing winding up petition
SHENZHEN LIONDA HLDGS.: Stakes in 6 affiliates frozen
TOM.COM: Posts HK$194M Q2 loss


* I N D O N E S I A *

PT ARIA BUMI GRAHA: Facing bankruptcy filing
PT ARIA PUTRA GRAHA: Facing bankruptcy filing
PT ARIA WAHANA INT'L: Facing bankruptcy filing
PT BANK OF BALI: To offer rights issue
PT DHARMALA SAKTI SEJAHTERA: Court keeps bankruptcy status
PT HASIL GROUP: Court declares bankrupt
PT ISTANA PRESTISINDO: Facing bankruptcy filing
PT KERAMIK SUMGER KARISMA: Facing bankruptcy filing
PT LANDASAN TERUS SENTOSA: Appeals bankruptcy declaration
PT PANGANSARI UTAMA: IBRA to sell to pay Hasan debt
PT TEXMACO: Fails to complete rehab on target


* J A P A N *

DAIICHI MUTUAL FIRE: Shinsei likely to buy it
INOUE KOGYO: Creditors to help with debt waiver
SNOW BRAND MILK: Bad milk, bad sales, bad loss


* K O R E A *

HYUNDAI ELECTRONICS INDUS.: Sahre sale to raise US$100M
HYUNDAI ELECTRONICS INDUS.: Sells off KT Freetel stake
HYUNDAI GROUP: Creditors consider signing new pact
HYUNDAI GROUP: Chung family pressed to step down
HYUNDAI MOTOR: Lenders offer to buy founder's car stake


* M A L A Y S I A *

AMMB HOLDING BHD: 10 million shares sold to pay debts
HO WAH GENTING GROUP: Restructuring implemented


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

C & P HOMES: Foreign firms eye up to 20% stake
CAPITOL WIRELESS: Gets relief from debts
JADE BANK: Expects to post annual loss; in merger talks
JADE BANK: Seeks BSP help following heavy withdrawals
MEDCO HOLDINGS INC.: Bourse suspends share trading
MONDRAGON INT'L PHIL.: Bourse suspends share trading
REYNOLDS PHIL.CORP.: Bourse suspends share trading
WISE HOLDINGS INC.: Bourse suspends share trading


* S I N G A P O R E *

PACIFIC CAN: S'holdres okay rehab plan, relisting ahead


* T H A I L A N D *

EMC PLC: Bankruptcy court accepts case
THAI LUBE BASE CO: Creditors back debt plan


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

FONDSIDE AUSTRALIA: Company in receivership
-------------------------------------------
A company involved in the construction of the $450 million
eastern gas pipeline has gone into receivership, owing
millions of dollars to hundreds of creditors.

Queensland-based construction company Fondside Australia
went into receivership on Wednesday under an arrangement
agreed to by the owner of the pipeline, Duke Energy
International.  The pipeline, which will bring natural gas
from Victoria's Longford gas fields to Sydney, as well as
Port Kembla and Nowra, is due to open in two weeks.

Organiser with the Construction, Foresty, Mining and Energy
Union, Mick Lane, says Duke is owed around $8 million, with
500 creditors owed $4 million.

"Several months ago, someone, and it would now appear it's
Duke Energy, propped the company up by virtue of an
injection of funds, probably by way of some sort of loan,
in order to get their project completed," he said. "Once
the project's virtually completed it would appear they've
called the debt." (ABC News Online  04-Aug-2000)

LIBERTYONE: Affiliate collapse delivers another blow
----------------------------------------------------
The troubles of embattled Internet media company LibertyOne
appear far from over with one of its strategic investments
in Asia collapsing into liquidation.

Chinese Books CyberStore, in which LibertyOne has a 25 per
cent stake, was placed in voluntary liquidation yesterday
after shareholders refused to provide further funding.
A CyberStore spokeswoman said the liquidator had not yet
determined the worth of the company's assets. She also said
a creditors meeting would be held within the month to
determine whether LibertyOne would receive a return from
the liquidation process.

CyberStore's controlling shareholder, iTVentures, said
yesterday the decision was made after CyberStore board
concluded the e-tailer "could no longer carry out its
normal business activities and liquidation was
the only option available."

LibertyOne acquired its 25 per cent stake last September
after issuing 14.6 million shares at 94c apiece to the Hong
Kong online book and music store.  The $13.7 million
investment gave CyberStore about a 4 per cent stake
in LibertyOne but it has since sold the shares.
LibertyOne's other Chinese Internet investments include
controlling interests in NetPower and HT Hypernet and a
small stake in Hong Kong Net company Chinadotcom.

At the time of the deal LibertyOne chief executive Mr
Graham Bristow, who has since left the company, said the
investment represented an opportunity to build "strong
commercial relationships with key Chinese Internet
businesses."

For LibertyOne, news of CyberStore's demise adds to its
growing list of concerns. They include the recent
resignation of some of its key employees such as founder Mr
Bristow, chief financial officer Mr Jack Surdoval and chief
legal counsel Mr John Mackay.  LibertyOne's core division,
its Web design business Zivo, lost four of its senior
managers last week and is reported to have lost several
other staff members this week.

New chief executive Ms Marcelle Anderson appears to have
been powerless to stop the flow of staff but indicated
earlier this week that she intended to keep all staff
abreast of the "restructuring" of the company. Yesterday
shares in LibertyOne closed 2c lower at 22.5c after dipping
to the day's low of 22c.

If the shares close at or below 21c, LibertyOne's barrier
warrants will cease trading and Salomon Smith Barney, which
issued the warrants in May, will be forced to sell the
underlying shares.  There are about 200,000 warrants in the
market, each with a 13c strike price.  (Sydney Morning
Herald 3- August-2000)

REALESTATE.COM: Sacks 19 in bid to stay alive
---------------------------------------------
Realestate.com.au has cut its staff by 19 people, altered
its invoicing terms from payment in arrears to payment in
advance and overhauled its budget in an attempt to stay
afloat beyond the end of the year.

Based on the figures contained in its fourth-quarter cash
flow statement, made to the Australian Stock Exchange on
Monday, the $2 million the online real estate agency had at
the end of June is not enough to sustain its business to
December.  Those companies which did not have a three year
history of earnings or sufficient tangible assets at the
time of their listing are required by the ASX to report
their cash-flow status every quarter for the next two
years.

Based on the fourth-quarter reports provided by 122
companies this week, the ASX has issued formal queries to
those it believes will not last the year unless their
earnings improve or they return to the market to raise
further capital.

Yesterday Realestate.com.au confirmed that it would not
survive the next six months based on its current quarterly
burn rate of $1.2 million. Realestate.com.au earned just
$783,000 last quarter.  However, the company said that as a
result of reviewing its "strategic direction" it would be
reducing its monthly operating expenditure.

The decrease in head count was expected to result in
savings of $1.3 million, or half the total amount it spends
on wages a year, while software the company purchased will
begin generating positive revenue next month.  Based on
these changes, Realestate.com.au now expects to become
cash-flow positive by January.

More bullish is POSMedia which, despite conceding to the
ASX that it "technically" had only enough cash to last the
quarter, insists it will instead turn cash-flow positive
before the end of September.

"There are no circumstances in which the company's
directors can envisage the same income and expenditure
profile continuing for subsequent quarters this year," the
multimedia company told the ASX.

POSMedia reported negative operating cash flow of $1.45
million for the three months to June 30, while revenue came
in at just $280,000, leaving it with $1.2 million cash at
hand. POSMedia is pinning its hopes on product and airtime
sales it has secured. (Sydney Morning Herald  04-Aug-2000)

SATELLITE GROUP: Lawsuits likely ahead
--------------------------------------
The collapse of The Satellite Group Limited is expected to
lead to multiple lawsuits against chairwoman, Kerryn
Phelps.

Despite raising $A25m in its public float in September
1999, the money seems to have disappeared in mid-2000 and
creditors and shareholders will probably resort to civil
action.  A group of property investors who bought 21
apartments in three of the failed gay and lesbian company's
developments, is preparing a lawsuit.

The investors were told they could not transfer title on
the property. Directors may be held accountable in such
cases.  (The Age  03-Aug-2000)

SATELLITE CORP: Gets cash, but facing receivership
--------------------------------------------------
A rift appears to have developed between former Satellite
Group executive Mr Jonathon Broster and the company's
founder and former managing director Mr Greg Fisher.

Mr Broster, who was discharged from bankruptcy last year,
this week agreed to hand over $1 million to Satellite,
which has been suspended from Australian Stock Exchange
trading for more than a month, in exchange for the company
calling a halt to its legal action against him.

The money should give the beleaguered company some much
needed cash. Satellite yesterday issued a statement
correcting reports in the Herald during the past two days
that the Australian Securities and Investment Commission
was seeking to place the company into receivership.

ASIC on Tuesday applied to the Supreme Court to place three
Satellite Group companies into receivership. But the
companies are private vehicles belonging to Mr Fisher and
Mr Broster and not to the listed Satellite Group.
While the company has agreed to suspend its legal action
against Mr Broster, he is still the subject of an
investigation by ASIC along with Mr Fisher.

Mr Broster pocketed just over $3 million when he sold his
stake in the Satellite Group last month to a Hong Kong
company, Millenium Group, but the money has been frozen as
a result of undertakings given to ASIC. Most of Mr Fisher's
assets also have been frozen.

ASIC this week agreed to allow Mr Broster to transfer $1
million from the frozen account to Satellite but the
remainder of the cash remains frozen. The commission,
meanwhile, will continue its investigations into Mr Fisher
and Mr Broster and their dealings with the Satellite Group.
(Sydney Morning Herald  04-Aug-2000)

ST GEORGE BANK: May axe 800 in revamp
-------------------------------------
St George Bank has flagged a major round of job cuts as
part of a thorough restructuring of its back office
functions, to be outlined at the end of this month.

A spokesman for the bank last night confirmed it had
written to employees this week, including some staff at
head office, asking them if they would express an interest
in retrenchment or redundancy. He said the letter was
related to the so-called "BestBank" project St George is
undertaking under managing director Mr Ed O'Neal to
dramatically improve efficiencies and "redesign" its
processes.

Mr O'Neal is being advised by Aston Associates, a US
management consultancy with a fearsome cost-cutting
reputation. It has been looking at the bank for all of this
year and has previously worked with Mr O'Neal's former
employer, Bank of Boston. Rumours within the bank suggest
as many as 800 positions could be cut from the staff of
more than 8,000 but the spokesman said no decisions had
been made and declined to outline the plans.

"There may be job losses as a result of the redesign," he
said.

It is understood that the job cuts will not include
branches, call centres or the information technology
division of the bank, although those that have received
letters include back office functions such as mortgage
processing. St George is considering outsourcing some
functions but maintains this is not the main thrust of the
redesign.

"This is not a call for voluntary redundancy or even an
option. It's just an expression of interest to be
considered for a redundancy or retrenchment if a whole
bunch of criteria is met," the spokesman said.

St George has scheduled an announcement for August 25 to
outline the plan, which chairman Mr Frank Conroy described
in May as "a substantial redesign of the processes within
the bank which will improve our efficiencies and
effectiveness and the way we interact with our customers".
St George shares finished 2c lower at $11.58 yesterday.

And despite shareholdings held by National Australia Bank
and ANZ, the bank has indicated that it will not field a
takeover until its restrictive articles of association
expire on July 1, 2002. The first result that will include
the full benefits of the Aston project will be the 2002
result announced in May, just a few months before the
articles expire.

St George operates at a higher cost/income ratio to its
larger rivals and expenses grew in its first half result,
meaning the Aston project is crucial to the bank's outlook.
UBS Warburg has a "reduce" recommendation on the company
and a share price target of $11.50, saying the price has
too much of a takeover premium built in.

Only last week St George agreed to a 9.1 per cent pay rise
over two years with the Finance Sector Union. The FSU's
national industrial officer, Ms Rosaline Kerlin, said
employees had been given an unfairly short period of time
to respond to the letters, given the announcement would be
made at the end of the month.

She said the company's decision to send the letters was the
result of union pressure but the bank was giving no
guarantees on redundancies. "They are saying, at the end of
the day, it the bank's right to say who gets retrenched,"
Ms Kerlin said. (Sydney Morning Herald  04-Aug-2000)


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

CHENGDU TELECOMM.CABLE: Posts 6 mo. loss
----------------------------------------
Chengdu Telecommunications Cable said yesterday that its
interim net loss for the six months to June 30 widened to
10.7M yuan from 4.7M yuan previously.

The wider loss came despite a rise in turnover to 213.2M
yuan from 150.9M yuan previously.  Its share of associated
companies' earnings came to 4.4M yuan in losses, compared
with a profit of 2.1M yuan the previous year.  Chengdu
Telecom produces telecommunications equipment, including
copper and optical fibre ables.

NEW CHUAN KONG INVEST.CO.LTD.: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on September 14 on the petition of
Nanyang Commercial Bank Limited for the winding up of New
Chuan Kong Investment Company Limited. A notice of legal
appearance must be filed on or before September 13.

PRICERITE GROUP: Annual net loss widens
---------------------------------------
Discount furniture and homeware retailer Pricerite Group
said yesterday its net loss in the year to March 31 widened
to $84.4M from $16.2M the year earlier.

It said in a statement that its operating loss ballooned to
$70.7M from a $9.8M operating loss last year.  The loss
included operating expenses of $56.2M, of which $49M was a
book deficit after a revaluation of the group's leasehold
properties.

PRIMIO 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
Strawberry Hill Development Limited for the winding up of
Primio Limited. A notice of legal appearance must be filed
on or before August 29.

PROKEY HOLDINGS 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 Prokey Holdings Limited. A notice of legal
appearance must be filed on or before August 15.

SHENZHEN LIONDA HLDGS.: Stakes in 6 affiliates frozen
-----------------------------------------------------
Shenzhen Lionda Holdings Co Ltd said its stakes in 6
companies have been frozen by Ningbo Intermediate Court.

The court also plans to auction the company's 90-pct stake
in Shanghai Henda Property Co Ltd as part of a legal
settlement in a debt case.  Shenzhen Lionda is also
required to pay 3.82 mln usd as a settlement on an
arbitration ruling, and pay 15 mln yuan to cover a loan
guaranteed by the company, it said.

Under the ruling by the Ningbo Intermediate Court, Shenzhen
Lionda's 1.88 mln shares in Shenzhen New Century Drinking
Water Technology Co Ltd have been frozen, along with its
95-pct stake in Shenzhen Lionda Development Co Ltd, its 80-
pct holdings in Shenzhen Lionda Light Textile Chemical Co
Ltd and its 95-pct interest in Shenzhen Lionda Electric
Appliances Co Ltd.

The court has also frozen the company's 3 mln shares in
Shanghai Lionda Industry Co Ltd and its 88-pct stake in
Shenzhen Lionda Investment Co Ltd.  The court will auction
the company's stake in Shanghai Henda Property and has
frozen 2 lots of land owned by the property firm. In an
arbitration ruling by China International Economic and
Trade Arbitration Commission, Shenzhen Lionda is required
to repay 3.76 mln usd in debts to New Hong Kong Macau Co
Ltd and pay 59,900 usd in arbitration charges.

Under a ruling by Guangzhou Intermediate Court, Shenzhen
Lionda is also required to pay 15 mln yuan to the Guangzhou
branch of China Merchants Bank, as settlement on a
guarantee made by Shenzhen Lionda on a bank loan to
Guangzhou Xufeng Enterprises Group Ltd.  Shenzhen Lionda's
A-shares last closed at 9.93 yuan, while its B-shares
closed at 1.48 hkd.  (AFX News Limited  03-Aug-2000)

TOM.COM: Posts HK$194M Q2 loss
------------------------------
Internet portal Tom.com, which last week fired 80 of its
500 employees in a cost-cutting move, reported a second-
quarter loss of HK$148.5 million (S$33.3 million)
yesterday, bringing its first-half 2000 loss to HK$193.89
million.

The company, which launched its series of China-oriented
portal sites in June, posted revenue of HK$5.27 million for
the three months ended June 30, and HK$6.01 million for the
half-year.  Backed by Hongkong property tycoon Li Ka-shing,
Tom.com's initial public offer in February stirred such a
froth among would-be investors that riots nearly erupted as
thousands queued for shares outside local banks.

But some critics have said Tom.com, controlled by Mr Li's
Cheung Kong Holdings and Hutchison Whampoa, is a late
entrant to an already-crowded China Internet portal market.
After an initial surge following the IPO, Tom.com shares
have fallen, and ended down 25 HK cents yesterday at
HK$5.35, far below their peak of HK$15.35.  Tom.com's basic
per-share loss was 7.08 HK cents for the first half of the
year.  (Reuters, The Straits Times  02-Aug-2000)


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

PT ARIA BUMI GRAHA: Facing bankruptcy filing
PT ARIA PUTRA GRAHA: Facing bankruptcy filing
PT ARIA WAHANA INT'L: Facing bankruptcy filing
PT ISTANA PRESTISINDO: Facing bankruptcy filing
PT KERAMIK SUMGER KARISMA: Facing bankruptcy filing
---------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) said on
Friday it was considering filing bankruptcy petitions
against nine subsidiaries of the heavily indebted Ongko
Group.

The nine companies include PT Aria Bumi Graha, PT Aria
Wahana Internasional, PT Aria Putra Graha, PT Istana
Prestisindo and PT Keramik Sumber Karisma Dinamika.
Robertus said IBRA was thinking of filing a bankruptcy suit
because the none of the nine companies showed good business
prospects.

Assistant vice president of IBRA's litigation group
Robertus Bilitea said the nine companies owed IBRA some Rp
208.4 billion (US$24.2 million) in debts from banks
currently under its care.

"We still have to complete our study on the nine companies'
documents before filing the bankruptcy petition," Robertus
said in a media briefing.  "They are simply paper companies
with no real businesses," he said, referring to all of
Ongko's 13 subsidiaries, which owed total debts of Rp 760
billion.

IBRA said in a statement that loans to the Ongko Group had
been granted without a qualified credit analysis and clear
usage.  Robertus said that an investigative audit would be
held to find possible fund malfeasance in each of Ongko's
13 subsidiaries.

In its debt restructuring proposal, he said, the Ongko
Group forwarded assets amounting to Rp 100 billion as
guarantees, but IBRA had refused the offer. Robertus said
the guarantees were not comparable to Ongko's total
outstanding debts of Rp 760 billion.  He said the Ongko
Group owed IBRA another Rp 551 billion through its other
four subsidiaries, which IBRA recently took to the
bankruptcy court for not paying their matured debts.

The four subsidiaries are PT Landasan Terus Santosa, PT
Mustika Niagatama Nusantara PT Citra Mahkota Abadi and PT
Indoland. IBRA last month won its first bankruptcy case
against PT Landasan Terus Santosa, which owed the agency
some Rp 270 billion.It was the agency's first success after
a number of failures in its legal actions against
uncooperative debtors.

In the ongoing proceedings, the court allowed the remaining
three companies to suspend the payment of their debts for
anther 270 days as of July 20, in order to enable them to
renegotiate their debt restructuring proposals with IBRA.
If the talks fail during the suspension of the debt payment
period, the companies will be immediately declared
bankrupt.

In filing the bankruptcy petitions, IBRA acted on behalf of
Bank Mashill, Bank Bali and Bank Danamon, the banks which
provided the loans to the four companies.  Robertus hinted
that following the investigative audit, the four banks
could be charged with corruption, collusion and nepotism in
its dealings with the Ongko Group as seen from their weak
credit analysis.  (Jakarta Post  05-Aug-2000)

PT BANK OF BALI: To offer rights issue
--------------------------------------
Indonesia's troubled Bank Bali, which had its
recapitalisation plans approved recently, said yesterday it
would issue up to 66.53 million new shares in a 99-for-one
rights issue priced at about 80.5 rupiah (1.7 Singapore
cents) a share.

Late last month, parliament approved Bank Bali's
recapitalisation, which will cost about 5.36 trillion
rupiah, or just over S$1 billion.

"Every shareholder is entitled to buy 99 new shares for
every share held. If a shareholder refuses to use the
right, its ownership will be diluted by 99 per cent," the
bank said in a statement.

The government is expected to issue bonds for the
recapitalisation.  The country's latest letter of intent to
the International Monetary Fund (IMF) signed on Monday,
said the completion of Bank Bali's recapitalisation would
take place in October, after a rights issue. Indonesia has
long promised the recapitalisation to the IMF.

Trading in Bank Bali shares was suspended temporarily
yesterday morning over a jump in its bid price. The bank's
shares rose yesterday by 50 rupiah to 150 on a single
trade, its first share activity since July 14.  (Reuters,
The Straits Times  02-Aug-2000)

PT DHARMALA SAKTI SEJAHTERA: Court keeps bankruptcy status
----------------------------------------------------------
The Supreme Court has rejected PT Dharmala Sakti
Sejahtera's appeal to revoke the company's bankruptcy
status, according to court documents.

The Supreme Court said there were no legal defects to the
original bankruptcy ruling issued by the Jakarta Commercial
Court.

"The appeal cannot be sustained. We do not see that the
Jakarta Commercial Court misapplying the bankruptcy law in
its ruling against the company," the Supreme Court said.

Dharmala Sakti was declared bankrupt in early June after
the majority of its creditors voted to reject the company's
debt restructuring proposal.  In its appeal the company
claimed that the Jakarta Commercial Court had permitted a
creditor vote "prematurely," and that two creditors acted
in bad faith by influenced other creditors to vote against
the debt restructuring proposal.  Dharmala Sakti is now
under court-supervised liquidation.  (AFX News Limited  03-
Aug-2000)

PT HASIL GROUP: Court declares bankrupt
---------------------------------------
The Jakarta Commercial Court has declared PT Hasil Group
bankrupt after majority of its creditors rejected the 1.0
trln rupiah debt restructuring proposal, which asked for a
20-year debt rescheduling, presiding judge Mahdi
Soroinda Nasution said.

Nasution said under the court-supervised voting session,
creditors opted to reject the company's debt restructuring
proposal on a 9-to-3 vote.

"The nine companies who voted to reject (the proposal) are
financial institution creditors, while the remaining three
are the company's raw material supplier creditors," he
said.

Hasil Group's total debts stand at 1.0 trln rupiah, of
which 400 bln is owed to recapitalised banks under the
Indonesian Bank Restructuring Agency, 250 bln to closed
banks, and the remaining 350 bln to Bank Niaga. The group
buys crude palm oil from its suppliers and sells them to
the market in packaged bottles.  (AFX News Limited  03-Aug-
2000)

PT LANDASAN TERUS SENTOSA: Appeals bankruptcy declaration
---------------------------------------------------------
Ongko Group unit PT Landasan Terus Sentosa said it has
appealed to the Supreme Court to annul the Jakarta
Commercial Court's decision to declare the company
bankrupt, company lawyer John Azis said.

He said the company filed an appeal is because it was not
given an opportunity by the Commercial Court to seek a
temporary suspension of its debt repayments. A suspension
of debt repayments would have been a step towards a
settlement, Azis added.

"The presiding judge's rejection of the company's request
for payment suspension has disadvantaged our clients," he
said.

Last week, the Commercial Court declared Landasan Terus
Sentosa bankrupt following its failure to repay debts
totalling 270 bln rupiah to the Indonesian Bank
Restructuring Agency.  (AFX News Limited  03-Aug-2000)

PT PANGANSARI UTAMA: IBRA to sell to pay Hasan debt
---------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) plans to
sell one of 30 companies handed over by tycoon Muhammad
Hasan to repay his Rp5.44 trillion (US$605 million) debt.

IBRA executive Dasa Sutanto said PT Pangansari Utama, which
has assets valued at Rp80.9 billion, would be sold this
year.  The catering company supplying food mainly for
mining and oil companies, posted a net income of Rp24.4
billion last year.

The 30 companies handed over by Hasan are grouped under PT
Kiani Wirudha. Most of them are timber based companies such
as PT Kiani Kertas, PT Jati Maluku Timber, PT Kiani Hutan
and PT Kalimanis Plywood Industries.  IBRA has formed five
holding companies to coordinates companies handed over
by conglomerates to repay their debts in Bank Indonesia
Liquidity Suppport (BLBI).

The five companies are PT Holdiko Perkasa for BCA-Salim
Group companies, PT Tunas Sepadan Investama for BNDI-
Sjamsul Nursalim companies, PT Kiani Wirudha
for BUN-Muhammad Hasan companies, PT Bentala Kartika Abadi
for Danamon-Usman Atmadjaja companies and PT Cakrawala Gita
Pratama for Bank Modern-Samaduikun Hartono companies.

Holdiko Perkasa is expected to contribute Rp5.2 trillion to
a Rp7.2 trillion target to be raised by IBRA's Asset
Management Unit for the state budget this year. Large
companies such as Kiani Kertas and Kalimanis would be sold
next year, Dasa said.  (Asia Pulse  02-Aug-2000)

PT TEXMACO: Fails to complete rehab on target
---------------------------------------------
Textile maker Texmaco's debt restructuring programme has
failed to meet its completion target of the end of July,
the company's president director Marimutu Sinivasan says.

"Why this happened should be explained by the Indonesian
Bank Restructuring Agency (IBRA)," Sinivasan said.

During a hearing with the House's Commission V (industry
and trade) some time ago, legislators had requested that
Texmaco's debt restructuring be finalised by the end of
July.  Meanwhile, data released by IBRA showed that
Texmaco's debt amounted to Rp16.5 trillion (US$ 1.7
billion), consisting of Rp11.5 trillion made by the
company's machinery division, Rp2.6 trillion by its textile
division and Rp1.9 trillion by one of its affiliates.

As much as Rp500 billion of the total comprised bad debts
of an affiliate company outside the textile industry. The
conglomerate's textile division is made up of 12 firms and
its machinery division of six.  Meanwhile, Trade and
Industry Minister Luhut Binsar Pandjaitan said, Texmaco
had the potential to absorb a huge labour force considering
its production capacity.

"The assets of Texmaco should be saved as it could absorb a
lot of workers," Luhut said.

Speaking about the prospects of Indonesia's textile
exports, Sinivasan said, they were still promising so that
the exports should be stepped up.

"Although Indonesia has been hit hard by the crisis, but
its textile exports have good potentials both in
traditional and non-traditional markets," Sinivasan
added.

Indonesian textile exports this year might increase,
Sinivasan said without giving more specific figures.
In early June, Texmaco increased its garment output
capacity, he said. The company set u five or six factories
to push exports to US$ 30 million a month, up from US$ 12
million previously.

With the increased production capacity, the company's
garment exports were expected to reach US$ 500 million this
year.  In the next three to four years, garment exports
were expected to reach US$750 million annually, he said.
(Asia Pulse  03-Aug-2000)


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

DAIICHI MUTUAL FIRE: Shinsei likely to buy it
---------------------------------------------
Shinsei Bank is the most likely buyer of Daiichi Mutual
Fire & Marine Insurance Co., which collapsed in May,
industry sources said Thursday.

A foreign-capital nonlife insurance company has been named
a likely buyer, but some of Daiichi Mutual's administrators
believe the Shinsei Bank offer is best, the sources said.
Shinsei Bank and Daiichi Mutual are aiming to reach a basic
agreement on the matter sometime this month, the sources
said. Shinsei Bank, formerly Long-Term Credit Bank of
Japan, intends to strengthen its management base by buying
Daiichi Mutual, the sources said.

Daiichi Mutual's administrators, including the Marine and
Fire Insurance Association of Japan, are looking for a
buyer that will provide management stability in the future
and reduce to the minimum the burden on policyholders that
may be caused by a likely review of planned returns,
according to the sources.

No bank has ever bought an insurance company in Japan.
Basically, the law does not allow banks to enter the
insurance sector, except when a bank takes over policies of
a collapsed insurer. (Japan Times Online  04-Aug-2000)

INOUE KOGYO: Creditors to help with debt waiver
-----------------------------------------------
Inoue Kogyo Co. said it has received approval from its
creditor banks for financial assistance, including a 14.28
billion yen ($131 million) debt waiver.

The general contractor said 16 banks, including Gunma Bank
Ltd. and Ashikaga Bank Ltd., didn't file objections to the
court-mediated debt-forgiveness request by the Wednesday
deadline, freeing Inoue Kogyo from part of the loans.
Inoue Kogyo, based in Gunma prefecture, north of Tokyo,
said it had liabilities totaling 38.83 billion yen as of
its March 31 book closing.  (DowJones, The Asian Wall
Street Journal  04-Aug-2000)

SNOW BRAND MILK: Bad milk, bad sales, bad loss
----------------------------------------------
Snow Brand Milk Products Co.'s sales of milk products
plunged 80 percent in July to 6 billion yen, following the
recent outbreak of food poisoning attributed to the firm's
goods, the president of the dairy products maker said
Friday.

"We deeply apologize for the great pains we have caused so
many customers," Snow Brand President Kohei Nishi said at a
press conference.

Nishi became president July 28 to replace Tetsuro Ishikawa,
who resigned together with seven other executives over the
outbreak in late June of food poisoning. The outbreak was
caused by milk products from the company's Osaka plant and
made some 15,000 people ill.

Snow Brand suspended operations at 21 plants in July, when
the company usually chalks up some 30 billion yen in sales
of milk products.  With sales falling sharply, Snow Brand
is expected to incur an operating loss in fiscal 2000,
which ends next March, its first loss on a year-on-year
basis since its foundation in 1950.

Nishi said Snow Brand will thoroughly examine the causes of
the food poisoning and do its utmost to prevent any
recurrence.  Meanwhile, supermarket chain Ito-Yokado Co.
said it and its convenience store chain, Seven-Eleven Japan
Co., will resume selling Snow Brand's milk products in all
regions, except Kansai, on Sunday, as the safety of Snow
Brand's plants was confirmed by the Health and Welfare
Ministry earlier this month. (Japan Times Online  05-Aug-
2000)


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

HYUNDAI ELECTRONICS INDUS.: Sahre sale to raise US$100M
-------------------------------------------------------
Hyundai Electronics Industry (HEI) announced Thursday it
plans to raise US$100 million by selling off part of its
2.5 million Korea Telecom (KT) shares.

On the first day of the planned sell-off Thursday, HEI
attracted US$75 million by selling off 1.36 million shares
of KT to a United States financial firm, Credit Suisse
First Boston, at a per share price of W61,200. HEI said
that it also plans to sell off about 450,000 shares of KT
Freetel to the same U.S. firm in a move to raise another
US$100 million. (Digital Chosun  03-Aug-2000)

HYUNDAI ELECTRONICS INDUS.: Sells off KT Freetel stake
------------------------------------------------------
Hyundai Electronics Industry said yesterday it has sold
part of its stake in Korea Telecom Freetel (KTF) to Credit
Suisse First Boston (CSFB) for $75 million.

Hyundai sold 1.35 million KTF shares out of its holdings of
some 2.5 million shares. Market watchers estimated the
company's capital gains from the sale at some 62 billion
won.  The company reportedly plans to sell off the
remaining KTF shares and its stake in Shinsegi Telecomm as
part of its efforts to reduce its debts from nine trillion
won to around eight trillion won.

Hyundai also holds stakes in Onse Telecom and Hanaro
Telecom but plans to keep them, a company official said.
(Korea Herald  04-Aug-2000)

HYUNDAI GROUP: Creditors consider signing new pact
--------------------------------------------------
Creditors of Hyundai Group plan to sign a renewed agreement
with Hyundai for the improvement of the group's financial
structure in case Hyundai fails to win market support
through its self-rescue plan, financial sources said
Wednesday.

The Korea Exchange Bank (KSE: 04940), Hyundai's main
creditor, has recently pressed for the removal of former
honorary Chairman Chung Ju-yung and his two sons from
management, early spin-off of the auto and heavy industries
units and sale of Chung Ju-yung's stake in Hyundai
Motor. Should Hyundai ignores the demands, the bank intends
to sign another agreement for the improvement of Hyundai's
financial health.

"The financial improvement agreement signed with chaebol to
help reduce their debt ratios to below 200 percent expired
at the end of last year. We are weighing a plan to sign
another such agreement with Hyundai as a step to see if
Hyundai is honoring its pledge made to the people,"
a high source at the Korea Exchange Bank said.

He added that "out of the 1.47 trillion won (US$1.31
billion) Hyundai pledged to raise as part of its self-
rescue efforts, 700 billion won to 800 billion won are
considered to be feasible, but the rest is not likely to
materialize.. We've asked Hyundai to clarify its sell-off
plan."

Another bank source said, "The debt rollover agreement
banks reached last month for Hyundai has no binding legal
force, and can be revoked at any time when Hyundai's self-
rescue plan is judged insufficient."

Meanwhile, a government source said that "Hyundai is
expected to come up with a measure this month to win the
trust of the market."  (Asia Pulse  02-Aug-2000)

HYUNDAI GROUP: Chung family pressed to step down
------------------------------------------------
Hyundai Group founder Chung Ju-yung and his family were
asked to completely step down from group management, or
face severe financial sanctions from creditors.

The government and creditors yesterday turned down
Hyundai's alleged proposal to deposit two-thirds of founder
Chung's Hyundai Motor shares with creditor banks as a way
to facilitate the automaker's separation from the group.
A top official at the Financial Supervisory Commission said
that the Chung family's stock deposit plan is "cosmetic and
unacceptable," calling for more radical restructuring
moves, like outright sales of stocks in core affiliates and
immediate dismissal of problematic executives.

"The Chung family will have to resolutely sell off their
shareholdings in key Hyundai companies to help ease Hyundai
Engineering & Construction's liquidity crisis and speed up
separation of the auto, heavy industries and financial
businesses from the group," the FSC official said.

He reiterated the government's demands for dismissals of
founder Chung's most trusted aides responsible for
aggravating the group's family dispute over the succession
and ensuing liquidity crisis, apparently referring to
Hyundai Securities Chairman Lee Ik-chi, Hyundai Engineering
President Kim Yoon-kyu and Hyundai Group chief
restructuring officer Kim Jae-soo.

The official then warned that if Hyundai fails to heed the
mounting reform pressures, creditors would impose financial
sanctions, including cutting of credit line to the troubled
contractor unit.  On Wednesday, Hyundai reportedly proposed
to the Fair Trade Commission that Chung would offer 6.1
percent of his 9.1 percent stake in Hyundai Motor to the
creditors as collateral and give up the corresponding
voting rights.

The FTC, which has demanded that Chung reduce his Hyundai
Motor stake to less than 3 percent in line with the
corporate separation law by disposing of the excessive 6.1
percent stake, denied discussing the stock deposit issue
with Hyundai.

According to some group sources, Hyundai plans to
officially announce its revised restructuring plans August
6, as soon as its actual owner and the fifth son of the
founder, Chung Mong-hun, returns from his extended trip to
Japan.

A Hyundai spokesman said that the upcoming restructuring
package will contain some "drastic" measures. "We're dong
the best to produce satisfactory self-rehabilitation and
restructuring plans," he said, adding that the group will
also make a clearer commitment to its 4.6-trillion-won
self-rescue package, scheduled for this year.

But the elder Chung is said to still remain reluctant to
relinquish managerial influence over Hyundai Motor, raising
the possibility of a head-on collision with government
reformers and creditors. In this regard, the founder may
consider selling his Hyundai Motor stake to Hyundai
satellite groups, like Songwoo and Halla groups, the
spokesman said.

The Chung family is also said to be opposed to selling off
core affiliates, like Hyundai Electronics Industries, and
advancing the spin-off of Hyundai Heavy Industries from
2003 to this year. Hyundai Merchant Marine and Hyundai
Engineering now have a combined 19.4 percent stake in
Hyundai Heavy.

In addition, the Chung family is expected to refuse to
force "vassal-like" executives, like Lee and Kim, to
retire.  Even worse, the elder Chung's sons may again enter
a fierce dispute over the succession of Hyundai Motor,
analysts forecast.

"If the elder Chung attempts to persuade his alienated son,
Hyundai Motor Chairman Mong-koo, to step down from
management in compliance with the government's calls for
the retirement of the Chung family, a fresh sibling fight
between Mong-koo and his younger brother Mong-hun could
erupt," said an analyst.

Meanwhile, the Korea Exchange Bank, the main creditor for
Hyundai, said that the elder Chung's irregular disposal of
his Hyundai Motor stake, rather than outright sell-off,
will be insufficient to impress the market and creditors.

"Hyundai's founding family has to reduce their stakes in
Hyundai Group units. Moreover, they should also keep their
earlier promises to completely step down from management,"
said a KEB official. "Out of the 1.47 trillion won Hyundai
Engineering pledged to raise as part of its self-rescue
efforts, 700 billion won to 800 billion won are considered
to be feasible, but the rest is not likely to materialize."

Another bank source warned the troubled conglomerate: "The
debt rollover agreement banks reached last month for
Hyundai has no binding legal force, and can be revoked at
any time when Hyundai's self-rescue plan is judged
insufficient." (Korea Herald  04-Aug-2000)

HYUNDAI MOTOR: Lenders offer to buy founder's car stake
-------------------------------------------------------
Hyundai Group creditors offered to buy Hyundai founder
Chung Ju Yung's 9.1 percent stake in Hyundai Motor Co., the
Maeil Business Newspaper reported, citing an unidentified
official at the state-run Financial Supervisory Services.

The creditors and the government view the stake as an
obstacle to a group restructuring that they want to include
unwinding of cross-shareholdings. Creditors also requested
Hyundai Group to remove family members from other
management posts and announce details of plans to spin off
Hyundai Motor, Hyundai Heavy Industries Co. and other group
units.

Hyundai Group has delayed plans to unveil a new
reorganization plan this weekend. It may be announced on
Tuesday, the report said.  Hyundai Group earlier promised
investors and the government that Chung would cut his stake
in Hyundai Motor to below 3 percent. for the paper's web
site. (Bloomberg  05-Aug-2000)


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

AMMB HOLDING BHD: 10 million shares sold to pay debts
-----------------------------------------------------
Banker Tan Sri Azman Hashim is the seller of a 2 per cent
block of AMMB Holdings Bhd shares that changed hands last
week, the proceeds of which will be used to settle debts.

The 10 million shares, held by his private company Azman
Hashim Sdn Bhd, were sold for RM125 million. "The placement
was made on behalf of the company by Danaharta to repay
loans," a company official told Business Times.

The shares were registered in the name of Danaharta Urus
Sdn Bhd, the loan management subsidiary of national debt
agency Pengurusan Danaharta Nasional Bhd, according to
company filings.  The block of AMMB shares was crossed
offmarket last Monday at RM12.50 each - 8 per cent below
the stock's last traded price that day - or RM125 million
in total. AMMB shares closed at RM12.50 yesterday, down 10
sen.

Dealers said the proceeds could have gone towards repaying
non-performing loans now taken over by Danaharta from local
banks.  There is still no indication who bought the block,
but according to market talk, it could be the Employees
Provident Fund (EPF).

"There aren't many local players who can take such a
sizeable block right now," said a company dealer.

The EPF currently holds about 20 million shares in AMMB,
the banking arm of Azman's Arab-Malaysian Group. AMMB owns
Arab-Malaysian Merchant Bank and Arab-Malaysian Securities.
The 10 million AMMB shares were not the only notable
transactions last week. Large blocks of AMMB loan stocks
were also crossed offmarket, which market sources now say
may also belong to Azman.

It was speculated earlier that these debt securities were
part of a stake held by AMMB's parent company, Arab-
Malaysian Corp Bhd (Amcorp), which last year sold off a
significant portion of its interest in the company to repay
creditors.

Two weeks ago, it sold RM37.5 million of AMMB's redeemable
unsecured bonds 1997/2002 for RM35.7 million. In February,
its shareholders approved the sale of 68.2 million AMMB
shares, or about 17 per cent of the company as part of its
plan to raise funds to repay its pressing debts.

Amcorp sought court protection from its creditors under
Section 176 of the Companies Act in the aftermath of the
Asian financial crisis two years ago.  Five million AMMB
irredeemable convertible unsecured loan stocks (ICULS)
1997/2002 were crossed offmarket last Tuesday for RM4.9
million in total.  This values each ICULS at 98.7 sen, a
1.7 per cent premium to its closing price of 97 sen.

Moreover, 32.7 million ICULS worth a cumulative RM31.2
million were sold directly to buyers between June 13 and
July 18. The size of the blocks crossed varied between 2.7
million and 10.1 million ICULS.  The movement in AMMB's
ICULS has generated interest among institutional investors
who are looking for good yields on their investments.

AMMB's ICULS carry a 5 per cent coupon, which represents a
better yield than fixed deposits currently, dealers said.
(Business Times  01-Aug-2000)

HO WAH GENTING GROUP: Restructuring implemented
-----------------------------------------------
Ho Wah Genting Bhd (KLSE:HOWA) is confident that the
group's financial position will be improved and
strengthened once its proposed restructuring scheme is
successfully implemented.

The group will also be able to continue as going concern
upon the successful implementation of the scheme, it said
in response to a query from the Kuala Lumpur Stock Exchange
(KLSE).  Ho Wah said that its ability to continue as a
going concern would depend on the continuous financial
support from the bankers and creditors, and achieving
future profitable operations.

In the event that these were not forthcoming, the going
concern basis on which the accounts have been prepared may
not be appropriate as its liability to realise assets and
discharge liabilities in the normal course of business may
be uncertain.  Ho Wah said this in clarifying the auditors'
qualifications in the company's 1999 annual report.

As highlighted in paragraph one of the report, the company
and certain of its subsidiary companies had been granted a
restraining order from the High Court under section 176(10)
of the Companies Act, 1965.  The order stopped the bankers
and creditors from commencing proceedings or continuing to
proceed with any action for the purpose of proposing a
scheme of arrangement and compromise repayment.

Paragraph two highlighted the deficiencies in working
capital and shareholders' funds and the short term
borrowings of which most of the facilities have been
suspended. As at the date of report, the company and its
subsidiary, Ho Wah Genting Wire And Cable Sdn Bhd had on
Aug 18, 1999 convened creditors' meetings where the
respective scheme creditors approved the proposed
schemes of arrangement and compromise repayment were
subject to further approvals from the relevant authorities
and shareholders.  (Asia Pulse  03-Aug-2000)


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

C & P HOMES: Foreign firms eye up to 20% stake
----------------------------------------------
Several foreign firms, mostly from Europe and Asia, are
interested in acquiring up to a 20-percent stake in housing
developer C & P Homes Inc. and are ready to infuse up to P1
billion into the company, industry sources told The STAR
yesterday.

However, sources said these investors first want to see a
loan restructuring deal between C&P and its creditors. The
company, majority-owned by Speaker Manuel Villar, is
seeking a seven-year restructuring of some P4.8 billion of
its P7.8 billion total loans while the balance would be
converted into equity. It expects to sign an agreement by
next month.

"There are foreign investors from Europe and Asia that have
shown interest in C&P. A couple of them are in housing-
related business, while the others are global fund managers
who are just investing funds in Philippine companies,"
sources said. "(But) one of the pre-conditions is the
restructuring of its (C&P) debts." (Philippine Star  04-
Aug-2000)

CAPITOL WIRELESS: Gets relief from debts
----------------------------------------
The Securities and Exchange Commission has relieved Capitol
Wireless Inc. of P938 million worth of debts but only until
Tuesday next week as it begins turning over cases involving
the company to a lower court in line with the country's new
securities law.

"The SEC has declared Capwire in a state of suspension of
payment and approved the proposed debt restructuring
agreement with its consortium of creditors. However, the
approval will be effective only until Aug. 8,'' a company
source familiar with the situation said.

On July 28, Capwire asked the SEC to suspend its debt
payments and announced that it had worked out a loan
restructuring agreement with its creditors.  State-owned
Land Bank of the Philippines was reported earlier as having
the biggest exposure in Capwire.

According to the company's latest loan statement, Landbank
lent Capwire some P391.5 million.  Capwire's other
creditors are the Development Bank of the Philippines,
which lent 189.7 million; Philippine National Bank, P153.4
million; United Overseas Bank Philippines Inc., P23.8
million; and Far East Bank and Trust Co., P11.7 million.
Earlier reports said Capwire obtained the approval of most
of its creditor banks on a rehabilitation that involved a
restructuring of its debts.

Capwire was set to conclude a debt restructuring agreement
in late June but additional demands by DBP derailed it. DBP
wanted additional mortgage trust indentures.  The creditor
banks also wanted a clear guarantee of the debts from
Capwire's parent, Republic Telecommunications Inc., until
the end of the debt-restructuring schedule. Retelco's
commitment initially covered a one-year period.
(Philippine Daily Inquirer  05-Aug-2000)

JADE BANK: Expects to post annual loss; in merger talks
-------------------------------------------------------
Jade Progressive Savings and Mortgage Bank said yesterday
it was holding talks with several banks for a possible
merger, even as it announced that it would likely post
losses this year because of the slow domestic economy.

In an interview, Jade Bank vice president Alvin Milton Co
told the INQUIRER his bank was negotiating a possible
merger with a number of thrift banks and a commercial bank
"A businessman should have an open mind to business
opportunities. Never say no," he said.

Co, whose family controls Jade Bank, dismissed rumors the
Bangko Sentral ng Pilipinas was investigating Jade Bank for
giving its directors, owners and shareholders P1 billion
worth of spurious loans. He also denied that the bank used
names of dead persons in promissory notes to raise money.

"I don't know where these rumors are coming from. We're
trying to calm the situation right now. It's true that some
clients named in some promissory notes have passed away,
but these are current loans and these were made when these
persons were still alive," Co told the INQUIRER.

Co confirmed that Jade Bank secured loans from the central
bank during a bank run triggered by the closure of Urban
Bank Inc. but he denied that it used as collateral some
mortgaged assets of borrowers.  The BSP is currently
looking into the books and records of Jade Bank due to
rumors hounding the bank. BSP Deputy Governor Alberto
Reyes, however, denied that the central bank had given any
financial assistance to Jade Bank.

The group of Chinese businessman Sy Chi Shiong, owner of a
company distributing Birch Tree products in the country,
controls about 60 percent of Jade Bank. The other major
investors in the bank are Goldilocks Bakeshop Inc. and
Hanabishi Corp.

As of June 26, 2000, Jade Bank said its assets were valued
at P683.962 million while liabilities reached P349.741
million. Its total loan portfolio was P499 million. It has
branches in Binondo, Makati, Las Pias, Caloocan and
Divisoria.

Jade Bank is currently headed by Jacinto Sy, the bank's
chair and chief executive. The other members of the board
are Filadelfo Rojas Jr., acting president and chief
operating officer, and directors Luis Co, Jeanne Lim,
Terence Lim, Antonio Pery and Joseph Castro. (Philippine
Daily Inquirer  04-Aug-2000)

JADE BANK: Seeks BSP help following heavy withdrawals
-----------------------------------------------------
Jade Progressive Savings and Mortgage Bank yesterday sought
financial assistance from the Bangko Sentral ng Pilipinas
to help finance a spate of withdrawals following reports of
liquidity problems.

As of press time, the Monetary Board of the BSP had yet to
decide whether to help the debt-laden thrift bank whose
officers were being investigated for alleged malpractice
and irregularities.  Jade Bank vice president Alvin Co said
he did not know his bank was seeking help from the BSP. "I
am not aware of it," he said.

Jade Bank is controlled by the group of Sy Chi Siong, whose
company also distributes Birch Tree products. Goldilocks
Bakeshop Inc. and Hanabishi Corp. are two other major
investors of the bank.  Jade Bank has five branches,
including a main office in Binondo. It has a deposit base
of around P180 million and a capitalization of about P300
million.

Sources said a good number of Jade Bank clients were
vendors from Divisoria.  BSP Deputy Governor Alberto Reyes
said the central bank was validating complaints from
anonymous depositors and stockholders of malpractices
against Jade Bank's officers.

"We are simply validating reports of disgruntled
stockholders. But based on our examination of the bank last
year, the bank was still in good financial position," said
Reyes.

Officers of Jade Bank reportedly borrowed P1 billion using
fictitious names, including those that belonged to people
who were already dead. A complainant also alleged that the
bank's officers remortgaged to BSP their real estate
without their consent.

Reyes said the central bank had not taken over Jade Bank's
management or that the bank's officers had been placed in a
hold-departure list.  Jade Bank was among several banks
that tapped the central bank's vaults for assistance during
a bank run that hit small banks after the government shut
down Urban Bank Inc.

As of June 26, Jade Bank said its assets were valued at
P638.926 million and liabilities were worth P349.741
million. Its loan portfolio stood at P499 million.
(Philippine Daily Inquirer  05-Aug-2000)

MEDCO HOLDINGS INC.: Bourse suspends share trading
MONDRAGON INT'L PHIL.: Bourse suspends share trading
REYNOLDS PHIL.CORP.: Bourse suspends share trading
WISE HOLDINGS INC.: Bourse suspends share trading
----------------------------------------------------
The Philippine Stock Exchange yesterday suspended the
trading of shares of Mondragon International Philippines
Inc., a resort and casino operator, and three other firms
for failure to submit their annual reports.

The other companies are Reynolds Philippines Corp., an
aluminum products maker; Medco Holdings Inc., an investment
banking company, and Wise Holdings Inc., a machinery and
industrial products trader.

In a circular to brokers, PSE president Ramon Garcia said
the four companies would not be allowed to trade their
shares in the exchange until they comply with the
reportorial requirements.  The four firms failed to submit
their 1999 annual reports.

Garcia, in the same circular, said the firms did not give
any explanation for failing to meet the requirements.
Otherwise, the PSE would have given them some leeway.
Bloomberg, however, quoted Mondragon spokesperson Pierre
Buhay as saying that the company could not submit its
annual report because it didn't have access to some of its
records. Mondragon's Mimosa Leisure Estate was closed last
year for failure to pay rent. PentaCapital Investment Corp.
is trying to arrange a loan for the company so it can pay
the rent.

Analysts said the PSE's move should send a strong signal to
listed companies that the exchange was determined to
enforce the rules strictly. Garcia had said that his
leadership would try to promote transparency in the market.
The PSE, still reeling from the impact of the BW Resources
Corp. price manipulation scandal, is strengthening its
regulatory framework.

In coordination with the Securities and Exchange
Commission, the PSE has identified five areas in the PSE
rulebook that would be revised to improve bourse trading.
These are delisting, trading halt, cessation of membership,
execution of orders/cross transactions and special block
sales.

The five-volume PSE rulebook is the first ever codified and
consolidated manual of policies and rules of the exchange
as a market and institution. (Philipine Daily Inquirer  05-
August-2000)


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

PACIFIC CAN: S'holdres okay rehab plan, relisting ahead
-------------------------------------------------------
Trading in shares of mainboard-listed Pacific Can, which
has been suspended since April last year, could resume by
mid-September (that is, in four to six weeks) now that the
group has received shareholder  approval for a debt
restructuring plan.

At an extraordinary general meeting yesterday, shareholders
of the troubled can maker gave the go-ahead for a debt
restructuring plan proposed by Seatown Construction Pte Ltd
and Pyramid Construction Engineering Pte Ltd. Seatown
Construction and other investors will pump about $31
million into the company, with $24 million used to pay off
creditors in full and the balance used as working capital.

In exchange, Pac Can will issue 755.9 million new ordinary
shares to Seatown and Pyramid Construction Engineering.
Another 310 million new shares will be placed out.
(Business Times (Singapore) 3- August-2000)


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

EMC PLC: Bankruptcy court accepts case
--------------------------------------
The Central Bankruptcy Court has accepted a business
rehabilitation petition from EMC Plc. The construction
contractor owes 1.1 billion baht to 143 creditors.

EMC said it had already undergone debt restructuring under
the auspices of the central bank's Corporate Debt
Restructuring Advisory Committee (CDRAC), and that its
major creditors agreed with its petition. The company
proposed EMC Power Co as its planner.

The court has also accepted a petition from Sahakarn
Engineering Co, which owes 400.2 million baht to 168
creditors. It also proposed EMC Power Co as its planner.
The court scheduled the first hearing for both cases on Aug
28, and any objections must be filed at least three days
before the hearing. (Bangkok Post  04-Aug-2000)

THAI LUBE BASE CO: Creditors back debt plan
-------------------------------------------
Thai Lube Base Co, Thailand's first producer of lubricant
base oil and an affiliate of Thai Oil Co, has won creditor
backing for its debt restructuring plan, according to a key
official.

A formal vote on accepting the plan is set for Aug 11,
according to Pichai Chunhavajira, acting deputy governor in
charge of corporate finance and accounting at the Petroleum
Authority of Thailand (PTT).  The vote had been scheduled
for this week but had to be postponed as there was a rumour
that the Excise Department was investigating a claim that
Thai Lube Base had evaded tax.

However, talks with the company revealed that the
allegation was unfounded, he said.  Under the restructuring
plan, Thai Lube Base's debts totalling US$200 million would
be reduced to $66 million.  Of the $134-million reduction,
half would be converted into shares held by the creditors.
At the same time, existing shareholders excluding Thai Oil
Co, had agreed to inject another 67 million baht to
maintain their shareholding percentages.

After the restructuring, the creditors would take a 20%
stake in the company. As Thai Oil Co would be unable to
inject enough new capital to maintain its 38% holding, its
stake would fall to 10%.  Meanwhile, the PTT would increase
its stake to 38% from 30%. Nippon Mitsubishi Oil would
continue to hold 22%, BP Oil 5% and other shareholders 5%.
Repayment of the remaining debt of $66 million would be
extended over 10 years.

Among the 10 creditors, Chase Manhattan Bank and the
Industrial Bank of Japan are owed the biggest amounts.
The creditor banks have agreed to arrange a total credit
line of $24 million to enable the company to make two
purchases of raw materials.

Mr Pichai said that the creditors accepted the
rehabilitation plan because they were confident that the
debtor's future would be very promising.  After the
completion of debt restructuring, Thai Lube Base would
recommence its production, he said. It was forced to close
early this year due to a lack of investment and working
capital to buy raw materials. (Bangkok Post  04-Aug-2000)


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