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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

            Thursday, August 17, 2000, Vol. 3, No. 160

                                   Headlines


* A U S T R A L I A *

AUSTAR UNITED COMMOS.: Posts $120.7M 1H loss
COMMONWEALTH BANK: Facing fines,legal action re fee changes
PMP COMMUNICATIONS LTD: Records A$3.44M annual loss
SOLUTION 6 HOLDINGS: Posts A$79.48M annual loss


* C H I N A  &  H O N G  K O N G *

BENSON ENGINEERING CO.LTD: Facing winding up petition
HKCYBER.COM: Losses widen
NEOLINK CYBER TECH.HLDG.: Losses widens


* I N D O N E S I A *

PT BIMANTARA CITRA: To sell units to cut debt burden


* K O R E A *

DAISHIN INVESTMENT & MGMT: Mutual fund posts loss
HYUNDAI ENGIN.& CONST.: Downsizing, selling off
HYUNDAI GROUP: Debt plan met with skepticism
KOREA FIRST BANK: Gov't to pour in 2.67T won more
MIDASASSET: Mutual fund posts loss
MIRAEASSET: Mutual fund posts loss
REGENT ASSET MANAGEMENT: Mutual fund posts loss


* M A L A Y S I A *

CONSTRUC. AND SUPPLIES HOUSES: Kurnia Padu to rescue
MALAYSIA TECHNOLOGY INDUS.: Gets restructure approval
NALURI BHD: Maldives may sue Naluri over failed airline


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

ALLIED BANK: Moody's downgrades ratings
ASB REALTY DEVELOPMENT: Creditors file more fraud charges
DMCI HOLDINGS: To sell loss-making subsidiaries
NATIONAL STEEL CORP.: Pres.,s'holders oppose rehab plan
PHIL. NATIONAL BANK: Moody's downgrades ratings


* S I N G A P O R E *

LINKS ISLAND: SGX suspends trading, begins probe
PACIFIC INTERNET: Posts wider Q2 loss


* T H A I L A N D *

CROWN SEAL: Posts Q2 net loss
EMC: Posts Q2 net loss
GFPT: Posts Q2, 1H losses
JASMINE INT'L PLC: Submits its reviewed Q2/00
NATIONAL FERTILIZER PLC: Posts 1H loss
RUANG KHAO HIGH INCOME FUND: Posts Q2 and H1 net losses
SUBMICRON TECHNOLOGY: Looking for white knight
UNION FOOTWEAR: Posts Q2 loss


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

AUSTAR UNITED COMMOS.: Posts $120.7M 1H loss
--------------------------------------------
Austar United Communications reports posting a $120.71
million half year net loss -- up 6 per cent from the same
period last year - despite a 48 percent increase in
revenues to $169.087 million.

"Core businesses performed consistently while early signs
from the deployment of data services are encouraging with
80 per cent of Austar's new Internet customers in Australia
also taking pay television," Austar said in a statement.

The company attibuted the loss primarily to the merger of
the Telstra and Saturn businesses in New Zealand. "The
inclusion of Austar's share of the Telstra business and
certain one time integration costs account for almost all
of the increase in EBITDA losses for the quarter," Austar
chief executive John Porter said in the statement.

Austar Entertainment subscribers grew by 16,500 for the
quarter. "This resulted in revenue growth of 36 per cent
and an improvement in earnings before interest, tax,
depreciation and amortisation of 95 per cent compared to
the same six month period in 1999," the Austar statement
noted.

COMMONWEALTH BANK: Facing fines,legal action re fee changes
-----------------------------------------------------------
The Commonwealth Bank faced fines of up to $20 billion
(billion) for failing to tell home loan customers of a
change in fees, a parliamentary committee was told today.

The committee, which is investigating the provision of bank
statements, was told by Sydney man Bernard Madigan that the
bank had breached regulations on fee notification.
He said the bank had begun levelling home loan fees on
customers monthly rather than annually in the middle of
1998.

But the bank had not told customers of the change, opening
the way to fines of about $1,100 in each case by those
people not told of the move.  "The Commonwealth Bank has a
liability I estimate between $10 billion and $20 billion
for not giving their customers 30 days written notice," Mr
Madigan told the committee.

Mr Madigan, who has been involved in several legal cases
against the Commonwealth, said that when he first found out
about the loan he had contacted the bank's help line.
He was then rung back by a bank legal adviser who
threatened him over asking any more questions on the issue.
A banking ombudsman investigation found that the bank had
not changed the level of fees so it did not have to give 30
days notice.

But Mr Madigan said that under NSW consumer laws the bank
had a case to answer. The Commonwealth's group solicitor,
John Lanser, told the committee that he was aware of Mr
Madigan's claim.  He said that it was part of a cross claim
by Mr Madigan who was already involved in legal action.

The Commonwealth's group manager of financial and risk
management, Michael Ullmer (Ullmer), said that a suburban
bank manager had taken an apprehended violence order out
against Mr Madigan over a different issue.  He said that Mr
Madigan was on a crusade to find any operating problems
within the Commonwealth.  (Yahoo, AAP  16-Aug-2000)

PMP COMMUNICATIONS LTD: Records A$3.44M annual loss
---------------------------------------------------
PMP Communications Ltd reports that it lost A$3.44 million
or A$0.014 a share for the year ended June 30. By
comparison, the company had earnings of A$57.06 million or
A$0.226 a share for the same period a year earlier. Revenue
for the current year was A$1.48 billion, versus A$1.19
billion the year prior.

SOLUTION 6 HOLDINGS: Posts A$79.48M annual loss
-----------------------------------------------
Solution 6 Holdings Ltd posted a A$79.48 million or A$0.65
a share loss for the year ended June 30.  By comparison,
the company had earnings of A$3.18 million or A$0.06 a
share in the same period a year earlier. Revenue this year
was A$179.55 million, versus A$74.29 million in the
previous year.


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

BENSON ENGINEERING CO.LTD: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on October 11 on the petition of
Yim Sai Keung for the winding up of Benson Engineering
Company Limited. A notice of legal appearance must be filed
on or before October 10.

HKCYBER.COM: Losses widen
NEOLINK CYBER TECH.HLDG.: Losses widens
---------------------------------------
A significant widening in net losses has been reported by
two companies listed on Hong Kong's Growth Enterprise
Market (GEM).

Financial news portal operator HKCyber.com said net losses
surged 911 times to HK$16.4 million in the three months to
June 30 from the year-ago period on turnover of HK$2.23
million.  The company attributed the increase to heavy
spending on the development of Web sites.

Listed on the GEM board at the end of last month,
HKCyber.com lost HK$18,000 in the same period last year.
The company's portals recorded hit rates of 17 million and
page views of 4.3 million as of June 30.  Shares in
HKCyber.com rose three HK cents to finish at 68 HK cents on
Tuesday.

Wireless solutions provider Neolink Cyber Technology
(Holding) said interim losses grew to HK$4.45 million in
the first half of the year, up from HK$832,000 a year ago.
Loss per share surged 4.5 times to 0.94 HK cents, compared
with 0.17 HK cents in the previous corresponding period.
However, Neolink said turnover rose 68.8 per cent to
HK$6.22 million in the period.  Shares in Neolink eased two
cents, or 4.76 per cent, to close at 40 HK cents on
Tuesday, three cents below its issue price of 43 cents.
(South China Morning Post  16-Aug-2000)


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

PT BIMANTARA CITRA: To sell units to cut debt burden
----------------------------------------------------
At a special shareholders meeting of PT Bimantara Citra,
the shareholders approved plans to sell stakes in food
conglomerate PT Nestle Indonesia, shopping center PT Plaza
Indonesia Realty and automotive manufacturer PT Bimantara
Cakra Nusa to help ease the company's debt burden.

Bimantara reported that it planned to sell its entire
interests in Nestle and Cakra as well as 95 percent of its
stake in Plaza Indonesia in order to restructure debts owed
to the Indonesian Bank Restructuring Agency (IBRA) and
other creditors. Sales proceeds would be used to repay the
debts owed by its property subsidiary PT Usaha Gedung
Bimantara to IBRA and its creditors.

Currently, Bimantara holds a 15.53 percent interst in
Nestle, 90 percent of Cakra and 27.55 percent interest in
Plaza Indonesia.


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

DAISHIN INVESTMENT & MGMT: Mutual fund posts loss
MIDASASSET: Mutual fund posts loss
MIRAEASSET: Mutual fund posts loss
REGENT ASSET MANAGEMENT: Mutual fund posts loss
-------------------------------------------------
Stock mutual funds totalling 88 products, excluding
restructuring funds, turned out to stand at 3.337 trillion
won, down 537 billion or 13.8 percent won from its original
capital.

According to a source of investment and trust sector
yesterday, 88 mutual funds managed by 18 investment and
asset management companies were valued at 3.337 trillion
won as of the end of July.  However, the remaining funds
are expected to suffer further losses, given their greater
vulnerability to more losses.

By company, MiraeAsset recorded the most losses at 347.3
billion won or an average 17.9 percent loss, followed by
Midasasset with 98.6 billion won in losses, followed by
Daishin Investment and Management with 30.8 billion won and
Regent Asset Management with 14.7 billion won. Meanwhile,
Yurieasset posted a profit of 44.4 billion won by managing
seven mutual funds worth 91.1 billion won. (Korea Times
15-Aug-2000)

HYUNDAI ENGIN.& CONST.: Downsizing, selling off
-----------------------------------------------
Hyundai Engineering & Construction (HDEC) is striving to
downsize and sell off securities and real estate.

An HDEC official said yesterday that the company is pushing
to downsize the organization and realign personnel to
improve efficiency.  He said a substantial part of staff in
the management department will be moved into sales
department.

The company has 7,000 employees with 250 directors and
executives.  The downsizing was part of the company's self-
rescue plan submitted to main creditor Korea Exchange Bank
Sunday.  HDEC also formed a 15-member executive committee
to carry out its self-rescue plan Monday.

The committee will coordinate repayment of 1.52 trillion
won ($1.36 billion) out of the company's total 6 trillion
won debt by the end of this year and sell a 6.1-percent
stake in Hyundai Motor controlled by Hyundai founder Chung
Ju-yung.  HDEC also said it will sell its office building
near Kwanghwamun to Hyundai Marine and Fire Insurance for
90 billion won with 18 billion won of that going to pay
down debt.

The company added that negotiations are underway to sell
its cement factory in Bangladesh valued at 46.8 billion won
and the sales agreement will likely be signed by the middle
of next month.

Meanwhile the company will hold an extraordinary
shareholder's meeting Sept. 23 to designate two internal
directors to replace former honorary chairman Chung Ju-yung
and former Hyundai Group chairman Chung Mong-hun who have
resigned.  (Korea Times  16-Aug-2000)

HYUNDAI GROUP: Debt plan met with skepticism
--------------------------------------------
Hyundai Group's revised restructuring plan should help the
South Korean conglomerate keep its creditors and the Korean
government at bay for now, but the plan does little to
address the group's longer-term financial challenges,
analysts said.

Hyundai Group on Sunday said founder Chung Ju Yung has
agreed to sell a 6.1% stake in Hyundai Motor Co., which
would satisfy a key government demand that he reduce his
stake in the company to below 3% before the conglomerate
proceeds with the proposed spinoff of its automobile unit.

In addition, Hyundai Engineering & Construction Co.
reaffirmed that it plans to reduce its debt to around four
trillion won ($3.59 billion) from 5.4 trillion won at the
end of July, through asset sales. Hyundai Group also said
it would spin off Hyundai Heavy Industries Co. by the end
of June 2002, rather than in 2003 as originally scheduled.

Hyundai Engineering creditors, led by Korea Exchange Bank,
have agreed to buy the 6.1% Hyundai Motor stake from Mr.
Chung for around 220 billion won by the end of this month
and will then resell the shares by the end of the year to a
non-Hyundai buyer. Mr. Chung will use the proceeds from the
stake sale to buy three-year corporate bonds from Hyundai
Engineering.

A Korea Exchange Bank official said Monday that creditors
wouldn't rule out selling the shares to Mr. Chung's son,
Hyundai Motor Chairman Chung Mong Koo, or to Hyundai
Development Co. Honorary Chairman Chung Se Yung, who is the
younger brother of the group's founder.  Hyundai Motor is
in the process of being spun off from Hyundai Group, while
Hyundai Development separated from the group in August
1999.

Despite the fact that the revised reform plan offered no
real surprises, Hyundai Group shares surged Monday, fueling
gains in the broader stock market.  Hyundai Engineering &
Construction's shares jumped 435 won, by the daily 15%
limit high, to 3,335 won. Hyundai Securities Co.'s shares
also surged by the limit, climbing 1,320 won to 10,450 won.

Hyundai Motor's shares inched up 150 won to 17,300 won,
while Hyundai Heavy Industries sank by 700 won, or 3%, to
22,700 won. Analysts said that Hyundai Group's reform plan
will likely provide little more than a short-term boost to
market sentiment.

"There's been so much to-ing and fro-ing," said Richard
Samuelson, head of research at Warburg Dillon Read in
Seoul. "Investors will require over the coming weeks and
months confirmation and yet more confirmation that this is
going to stick."

Wahid Butt, head of research for Indosuez W.I. Carr
Securities Ltd. in Seoul, said it wasn't clear that Hyundai
Engineering's debt-reduction plans will necessarily reduce
its overall debt burden to a manageable level. "Just
reducing debt is not enough for Hyundai Engineering, they
need to be changing the terms of the debt" to longer-term
maturities, he said.

Namuh Rhee, head of research at Samsung Securities Co. in
Seoul, also expressed skepticism. He said that Hyundai
Engineering suffers from overly optimistic accounting that
appears to be inflating the company's valuation of its
assets. More conservative accounting is needed to value the
company's assets at a more-realistic level.

"We think that the current approach taken by creditors
isn't the right answer," Mr. Rhee said. "Hyundai
Engineering's asset-quality problem can't be solved with
just a liquidity injection."

Eugene Chung, head of research at Jardine Fleming
Securities Ltd. in Seoul, said Hyundai Group's revised
reform plan held no positive surprises for the market.
He pointed out that the most notable aspect of the plan --
Mr. Chung's agreement to sell a 6.1% stake in Hyundai Motor
-- was merely "a reversal of an initial bad decision" to
raise his holdings in the auto maker earlier this year.

"It's premature to say that all the credit concerns about
Hyundai Group and Hyundai Engineering & Construction are
all over," the Jardine analyst said.  (The Asian Wall
Street Journal  15-Aug-2000)

KOREA FIRST BANK: Gov't to pour in 2.67T won more
-------------------------------------------------
Additional public money totaling 2.67 trillion won or more
will be injected into the Korea First Bank to help it make
reserves against additional losses as part of the agreement
between the government and Newbridge Capital, the bank's
largest shareholder.

Korea First has asked the government to purchase about
three quarters of the bad loans amounting to 3.5 trillion
won as of the end of June, the Korea Deposit Insurance Co.
noted.  In response, KDIC will conduct due diligence over
KFB's financial status for one month and decide the amount
of the public funds to be transfused into the bank.

However, it was reported that the government is considering
purchasing KFB's bad loans of 3.5 trillion won, rather than
fully compensating loan-loss provisions amounting to 2.4
trillion won against its bad loans.  Consequently, the
amount of public money injected into KFB is forecast to
range from a minimum of 2.7 trillion won to a maximum of
3.5 trillion won.

According to KFB's financial statement proposed to the
government, most of the bad loans came from the fallout
Daewoo Group with two trillion won and the remaining from
non-Daewoo companies under workout programs, court
receivership and court mediation with 1.22 trillion won.

Some 297 billion won was additionally found as bad loans
under the rigid standard of provisions against bad loans _
forward-looking criteria (FLC).  The injection of the
additional public funds into KFB was part of the
government's arrangement with Newbridge last year that the
government should fully compensate for bad loans that would
arise over the next two years after the U.S.-based
financial institution purchased a 51 percent stake in the
then ailing bank.

The government so far has injected about 12.3 trillion won
in public money to clean up KFB's books in the wake of the
government's efforts to back up the banking industry
shattered by the financial crisis two years ago. By the
planned additional injection of 2.6 trillion won or more
this time, as uch as 15.8 trillion won is expected to be
delivered into KFB.

However the total amount may increase to 17.3 trillion won
under the assumption that the additional losses in 1.5
trillion won will be revealed by 2002.  The actual amounts,
KDIC predicts, will be about 10 trillion won since some of
5.8 trillion won has been already retrieved and the bank's
exposure to the financially troubled companies has been
decreased.

Meanwhile, to retrieve all the public money from KFB, the
bank's stock price should hover around 55,000 to 60,000
won. And KDIC has a 49 percent stake in KEB.  (Korea Times
16-Aug-2000)


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

CONSTRUC. AND SUPPLIES HOUSES: Kurnia Padu to rescue
----------------------------------------------------
There is now light at the end of the tunnel for
Construction And Supplies Houses Bhd (CASH) with the
emergence of Kurnia Padu Sdn Bhd as the former's white
knight.

Kurnia Padu, which owns 70% of TV drama producer HVD
Holdings Sdn Bhd (the remaining 30% is held by the Minister
of Finance Inc), is making a reverse takeover of
financially-strapped CASH.  Under a memorandum of
understanding (MoU) signed yesterday, CASH is to acquire
the entire equity in Kurnia Padu which will transform the
fire-brick manufacturer into a media company.

The shareholders of Kurnia Padu are Sebastian Foo (40%),
Adnan Zakaria (30%) and Celene Leong (30%). CASH chief
executive Datuk Abdul Aziz Sheikh Fadzir described HVD
Holdings as a white knight that would turn around the
company, which had been in the red for the last five
financial years. Its accumulated losses over the period
amounted to RM143mil.

"Given the company's present financial position, any
acquisition plan will trigger the possibility of a reverse
takeover," said Aziz.

Details of the acquisition were not disclosed at the press
conference held by the company yesterday, because the
advisers are still doing the valuation on HVD Holdings'
library which has 8,000 hours of film.  "These are valuable
assets that can be converted into cash," he said.

Asked whether there would be a capital reduction exercise
together with the acquisition by Kurnia Padu, Aziz said:
"We will announce the details once the due diligence is
completed, which is expected to be done within the next 90
days."

CASH has been searching for a white knight since 1996 when
it announced a proposal for a reverse takeover by an
Indonesian timber group Barito Group. However, the
Securities Commission rejected the proposal.  Aziz said HVD
Holdings would inject a new lease of life into the company
as there was a huge potential market for it to tap.

"The entire local home video market is worth about RM400mil
and local productions have only captured 5% of it. There is
room for the local producer to enhance its market share,''
he added.

For its financial year ended June 30, 1999, HVD Holdings
posted a net profit of RM5mil and it is expected to achieve
a net profit of between RM5mil and RM8mil for the financial
year just ended June 2000.  Foo of Kurnia Padu said the
company's turnover was in the range of RM100mil to RM120mil
in the last financial year. And he expects turnover to grow
by 30%.

Aziz said there would be a boardroom reshuffle upon
completion of the acquisition.  Foo added that he would be
on the board if there was a need for him to do so.  Aziz,
who claimed to have only one lot of CASH shares, indicated
that his stake in CASH would be increased in the future.
Trading in the company's shares was suspended yesterday.
About 64% of its shares are said to be held by Clob
shareholders. (The Star  16-Aug-2000)

MALAYSIA TECHNOLOGY INDUS.: Gets restructure approval
-----------------------------------------------------
Bondholders of Technology Resources Industries have
approved the company's plan for restructuring its debts.

Malaysia's largest cellular phone company said most of its
bondholders have given their initial nod to reschedule
US$375 million in Eurobonds. TRI's shares rose as much as
3.8 percent in Tuesday trading on the news.

NALURI BHD: Maldives may sue Naluri over failed airline
-------------------------------------------------------
Naluri Berhad, the majority shareholder of Malaysian
Airlines Bhd, may face litigation by the Maldives
government for allegedly violating a shareholders'
agreement with the now defunct Air Maldives, New Straits
Times reported yesterday.

It cited the Haveeru Daily, quoting the Maldivian Minister
of State for Finance and Treasury Mohamad Jaleel, as saying
that Air Maldives had to cease operations due to Naluri's
failure to provide financing that it had committed for the
operation of flights to Europe.  Mr Mohamad said that his
government had "repeatedly" been in talks with Naluri to
control the size of the debts.

"Air Maldives had to bear immense losses because Naluri
failed to provide the finance needed for international
operations and because of the way the management of the
company acted concerning the flights between Europe and
Maldives," the paper said.

When contacted on Monday, Naluri head of corporate
communications Johan Zainuddin declined to comment.
A Naluri representative, Fauzi Ayob, described as Air
Maldives' managing director, also refused to comment on the
matter when contacted in Kuala Lumpur. A source
acknowledged that Naluri was aware of an impending suit,
but had yet to receive any documents.

Air Maldives was a joint venture between the Maldives
government, which owned 51 per cent, and Naluri, which held
the remaining 49 per cent. (Business Times  16-Aug-2000)


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

ALLIED BANK: Moody's downgrades ratings
PHIL. NATIONAL BANK: Moody's downgrades ratings
-----------------------------------------------
Two banks controlled by taipan Lucio Tan are not getting
favorable ratings from international credit rating agency
Moody's Investor Service.

Moody's has placed the ratings of Philippine National Bank
on review for possible downgrade following the acquisition
of majority control of the bank by Tan and the exit of the
government from the bank.  According to Moody's, PNB rating
may have to be downgraded now that government support for
the bank is expected to diminish.

Under the temporary agreement with the government,
government deposits with PNB would be kept for three years
as a sweetener to the privatization.  Moody's also cited
the fact that PNB's position in the banking industry
appears to be diminishing following recent consolidations
in the banking industry.

Tan's Allied Bank, according to Moody's is not yet facing
downgrade. However, the outlook of Moody's for Allied has
been changed from stable to negative. Moody's explained
that the negative outlook on the ratings of Allied Banking
Corp. "captures the potential for a continued deterioration
in its financial condition, and a possible future
combination with PNB."

Moody's continued that its change of outlook for Allied
"reflects concern over the weakening in its financial
condition amidst an increasingly difficult environment.
Moody's pointed out Allied's "prospects for loan growth are
mediocre, and the bank has suffered from above-average
decline in asset quality."

It went on that the negative outlook also reflects "the
potential for a possible future combination with PNB, which
is now controlled by possible future combination with PNB.
The possibility of a merger between the two banks has been
raised. (Philippine Star  16-Aug-2000)

ASB REALTY DEVELOPMENT: Creditors file more fraud charges
---------------------------------------------------------
Eighteen more small creditors of ASB Realty Development
filed estafa charges before the Justice department,
bringing to 30 the total of mosquito investors seeking the
criminal indictment of ASB president Luke C. Roxas and
other responsible officials of the real estate firm.

Aside from criminal prosecution, the new set of
complainants also wants to compel Mr. Roxas, senior vice-
president and treasurer Evelyn Nolasco and vice-president
for money market placements Edwin Casta to return their
placements totaling 300 million Philippine pesos ($6.67
million at PhP44.944=$1).

The complainants, mostly Chinese-Filipino businessmen,
include Geraldine Ang, Christine and Emilia Chua, Elizabeth
Chan and Evelyn See Co.  "More and more creditors are
coming out to enforce their claim...Many are still afraid
but we hope to convince them to file their respective
complaints to bolster their chance of recovering their
investments," said Kenneth Ty, Jr., the group's
spokesperson.

With only 30 claimants, 682 other individual creditors are
still waiting in the wings, hoping a return of funds before
yearend.  The first group of claimants is comprised of four
creditors, including Mr. Ty. Hearings are ongoing for these
creditors to recover PhP87 million ($1.94 million) in
placements.

The second batch involved PhP73 million. Creditors include
Herbert Tiu Laurel, brother of local columnist, Herman Tiu
Laurel.  The DoJ did not order a consolidation of all the
pending estafa cases as "it involves various claimants."
State Prosecutor Albert R. Fonacier said it will be
difficult for only one prosecutor, or even a panel of three
prosecutors, to handle the consolidated suits.

Meanwhile, ASB's unsecured creditors are not too optimistic
about the feasibility of the proposed rehabilitation plan.
Representing unsecured creditors, comptroller Elias Cosme
said the beleaguered firm is set to file with the
Securities and Exchange Commission a plan requiring secured
creditors to give up a portion of the PhP13-billion worth
of collateral they hold.

ASB creditor banks, with claims amounting to over PhP5.4
billion, have agreed to free up PhP1.8 billion worth of
collateral assets, which could be operated or rehabilitated
to generate the amount needed to repay unsecured creditors
over a five-year period, Mr. Cosme said.

He questioned the feasibility of the plan, alleging that
PhP1.8 billion in assets is not enough to pay PhP7.3
billion worth of debts over the proposed five-year period.
Earlier, the Individual Creditors' Committee -- an umbrella
organization of over 150 of ASB's 700 creditors -- disputed
the realty firm's claim that "massive withdrawals" by
individual creditors contributed to the group's liquidity
problems.

In its petition for rehabilitation, ASB attributed its
financial woes to the massive withdrawal by individual
creditors, coupled by the glut in the real estate market,
the severe drop in the sale of real properties and
decreased investor confidence.

But Mr. Cosme pointed out that the "ASB Group's liquidity
problems is primarily due to the net unaccounted advances
by its principal stockholder, Mr. Roxas, of PhP5.06
billion.  The individual creditors are also pressing for
the presentation of a full accounting of the said amount of
money allegedly held by Mr. Roxas.

The property group filed for debt suspension after failing
to service liabilities amounting to over PhP12.7 billion,
its debt moratorium is set to expire on September 1. The
ASB group is composed of ASB Holdings, Inc., ASB Realty
Corp., ASB Development Corp, ASB Land, ASB Finance and its
allied companies - Makati Hope Christian School, Bel-Air
Holdings Corp., Winchester Trading Inc. VYL Development
Corp., Gerick Holdings Corp., and Neighborhood Holdings,
Inc.  (Business World  17-Aug-2000)

DMCI HOLDINGS: To sell loss-making subsidiaries
-----------------------------------------------
To avoid posting further losses, Consunji-controlled
construction firm DMCI Holdings, Inc. is set to divest
investments in two money-losing subsidiaries, Atlantic,
Gulf & Pacific Co. of Manila, Inc. (AG&P) and Semirara Coal
Corp.

The two units have continuously pulled down earnings of the
parent company since last year.  In an interview with
reporters following the company's stockholders meeting
yesterday, DMCI president Isidro A. Consunji said the
management will also review interests in other subsidiaries
for possible divestment over the next two years and instead
focus on low- to mid-income residential development.

"We'll just be a construction home developer. Essentially
that's where we're gonna go and get rid of the rest. Most
probably we'll get rid of AG&P and Semirara in the medium-
term," he said.

Mr. Consunji reported that DMCI's net losses during the
first semester further widened to 98 million Philippine
pesos ($2.18 million at PhP44.944=$1) from PhP36 million
($.8 million) due to the losses incurred by the two
subsidiaries.  Net losses of AG&P and Semirara amounted to
PhP42 million ($.93 million) and PhP178 million ($3.96
million), respectively.

The DMCI head said both companies are sensitive to world
market trends. AG&P's business is currently being affected
by the slowdown and consolidation in the international oil
and gas market while low coal prices have affected sales of
Semirara.

"We'll try to sell if someone is willing to buy. If we
cannot sell AG&P, then we might sell its assets to pay
debts worth PhP1 billion ($22.25 million) to PhP1.5
billion. Semirara, on the other hand, has to increase
production and better prices to make money," he said.

The construction firm also attributed its losses to lower
orders during the period. Mr. Consunji said DMCI's order
book stood at only PhP3.9 billion from PhP7.8 billion. The
company's contracts this year, on the other hand, amounted
to only PhP1.3 billion.  Aside from the two losing units,
the management also intends to sell its stake in Subic
Water and Sewerage Co., Inc. as well as PhP2-billion to
PhP3-billion worth of properties in Metro Manila. Proceeds
of the divestment will be used to retire debts which
currently stands at PhP3.4 billion.

Meanwhile, Mr. Consunji said the company will eventually
become a housing developer due to the continuing slump in
the construction industry. The company expects housing
projects to contribute more than 50% to its business.

"Construction is not going to go up in the next two years
so we'll have to generate construction ourselves. There are
positive housing indicators which include the government's
housing program, the availability of financing and the
improving demand for housing," he said.

He disclosed that DMCI will engage in 15 real-estate
projects -- mainly low- to mid-income housing amounting to
PhP1.5 million to PhP2 million per unit -- in the next 12
to 18 months. The projects will be located in DMCI's 100-
hectare landbank in various areas in Metro Manila.

The company has already launched Lakeview Manors in Taguig
and Hampstead Gardens in V. Mapa, Quezon City. Sales from
the two projects is seen to hit PhP1.11 billion while total
sales over the next three years is projected at PhP6.9
billion.  (Business World  17-Aug-2000)

NATIONAL STEEL CORP.: Pres.,s'holders oppose rehab plan
-------------------------------------------------------
The rehabilitation of ailing National Steel Corp. (NSC),
Asia's largest steel firm, is faced with another obstacle
after its Malaysian shareholders expressed opposition to
the proposed rehabilitation plan on concerns that their
ownership in closed steel firm will be significantly
diluted.

An industry source said NSC president Ibrahim Bin Biddin,
in a meeting with creditors last week, expressed his
objection to the plan, but presented no alternatives.

"He objected to the rehabilitation plan because the
shareholders will be diluted. But he gave no alternative.
He said the shareholders are not prepared to put in money,"
the source said.

An initial 100 million Philippine pesos ($2.23 million at
PhP44.923=$1) is needed to revive NSC, the source added.
The source said creditor banks, which have a combined
PhP16.5-billion ($367.3 million) exposure to the steel
firm, would be willing to provide the needed funds but only
if the rehabilitation plan is approved.

"NSC's ownership should first be established. Banks will
have to foreclose, but creditors will have to pay PhP1.2
billion for the filing fee. The filing fee is so expensive.
We could use the money to revive NSC instead. We need a
special dispensation so we will not pay the filing fee
anymore," the source said.

Securities and Exchange Commission (SEC) chairperson Lilia
R. Bautista earlier said the commission will not approve
NSC's rehabilitation plan without proof that shareholders
of the cash-strapped steel maker have given their go-
signal. Based on the rehabilitation plan, banks will end up
owning 87% of NSC after PhP7.5 billion of the loans are
converted into equity.

Shareholdings of Malaysian Hottick Investment, Ltd.,
Japanese firm Marubeni Corp. and National Development Co.
will be reduced to 13%. (Business World  16-Aug-2000)


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

LINKS ISLAND: SGX suspends trading, begins probe
------------------------------------------------
"Trading suspension, possible corner situation, involvement
of commercial crime buster."  It was deja vu when the
Singapore Exchange yesterday announced that it had
suspended the trading of Links Island shares pending
inquiries into possible wrongdoings.

Almost exactly two years earlier the exchange dealt in
similar fashion with Mid-Continent Equipment Group after
discovering that five individuals had bought up more than
90 per cent of the stock's free float. An SGX investigation
found that only 626,000 out of the 18 million free-float
shares were held by investors other than the quintet.

The five individuals in cahoots had, during eight trading
days following the stock's initial public offer, gained
control of 96.5 per cent of Mid-Con's free-float shares.
No one has been charged for any criminal activity in
connection with the incident.

Yesterday's announcement by the SGX on Links Island was a
shock to some, but had been anticipated by others, given
the rather strange behaviour of the stock.  (Straits Times
17-Aug-2000)

PACIFIC INTERNET: Posts wider Q2 loss
-------------------------------------
NASDAQ-listed Pacific Internet (PacNet) yesterday reported
second-quarter net losses that widened to $5.2 million from
$960,000 in the period last year.

This deterioration was attributed to the high cost of
regional expansion.  The loss surprised the market as most
analysts had expected the Internet service provider (ISP)
to report profits.  But despite the hard knock the company
remained optimistic.

PacNet chairman Ko Kheng Hwa said that the group was
"confident" its strategies of growing into new ISP and e-
business markets and new Internet-related revenue streams
"remain sound."  He warned, however, in a conference call
yesterday that "key investments in new regional markets and
our e-business venture, PACfusion.com, will continue to
have an impact on our near-term bottom line."

The group had said in June that growth of its e-commerce
portal PACfusion.com and its expansion into India and China
would involve a cost of between US$25 million and US$35
million (S$43 million and S$60.2 million).  For the second
quarter ended June 30, PacNet saw a 52 per cent jump in
revenue to $26.6 million.

This was due largely to a 44 per cent jump in its dial-up
subscriber base and an 88 per cent jump in ISDN and
corporate leased lines.  Excluding Singapore, its total
subscriber base grew 143 per cent.  The SembCorp Industries
unit said it still managed to grow its dial-up subscriber
base in Singapore despite "intense competition."

As at June, it had just over 200,000 dial-up subscribers in
Singapore, which continued to be its biggest market.
In the last quarter, it also launched officially its
operations in Thailand.  It now has operations in
Singapore, India, Hongkong, the Philippines, Australia and
Thailand.

Mr Ko said that he was looking forward to PacNet's
"transition from a narrow band service provider to a full-
fledged broadband player in Asian markets."

An example was its impending roll out of its wireless
broadband Internet access service -- Local Multipoint
Distribution Services network -- in Singapore by the end of
the year.  He also said that the company would be launching
its international direct dialing (IDD) service to consumers
"within three months."

PacNet, which has a cash hoard of about US$22 million,
offers IDD services to corporations.  On a listing of
PACfusion.com and a secondary listing of itself on the
Singapore Exchange, PacNet chief executive Nicholas Lee
said that he still hoped to proceed with them.

However, "the current lackluster market" would mean that
PacNet was in no hurry to push the listings. PacNet shares
rose US$3/16 to US$14-13/16 on Tuesday on Nasdaq. (Straits
Times  17-Aug-2000)


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

CROWN SEAL: Posts Q2 net loss
-----------------------------
Crown Seal has recorded a second-quarter net loss of
Bt103.64 million and a net loss of Bt73.38 million in the
first half of this year.

EMC: Posts Q2 net loss
----------------------
EMC recorded a Bt144.32 million net loss in the second
quarter of 2000. For the same period last year, the company
posted a narrower loss of Bt76.41 million. For the first
half of this year, EMC posted a net loss of Bt170.86
million.

GFPT: Posts Q2, 1H losses
-------------------------
GFPT recorded a Bt21.02 million net loss in the second
quarter this year, or Bt0.36 per share. By comparison, the
company posted a net profit of Bt114 million for the same
period last year. For the first half of the year, the
company posted losses of Bt47.25 million, or Bt0.81 per
share. That compares with a net profit of Bt180.67 million,
or Bt3.17 per share, for the same period in 1999.

JASMINE INT'L PLC: Submits its reviewed Q2/00
---------------------------------------------
Jasmine International Public Company Limited (JASMIN) has
reported to the Stock Exchange of Thailand on the financial
results of its second quarter ended June 30 that the
company and its subsidiaries had a total operating profit
of Bt68 million.  The main profits were from the submarine
optical fiber cable network and the public rural telephone
services.

However, the company and its subsidiaries lost Bt205
million from the foreign exchange rate due to Baht
depreciation when US Dollar and Japanese Yen on March 31,
2000.  The company undertook the loss burden incurred to
the additional guarantee reserve for the associated
companies after the execution of the Debt Restructuring
Agreement, worth Bt196 million.

Therefore, the company and its subsidiaries had a net loss
of Bt332.83 million in the second quarter of 2000.  This
showsed decrease for Bt741.51 million or 222.78% from
Bt408.68 million net  profit in the same quarter last year.

NATIONAL FERTILIZER PLC: Posts 1H loss
--------------------------------------
National Fertilizer Plc (NFC) recorded a net loss of Bt758
million during the first six months of the year, compared
to a net loss of Bt1.4 billion during the same period last
year. Revenue totalled Bt2.47 billion during the first six
months, an increase of 66 per cent over the same period
last year.

Meanwhile, NFC is trying to convince a unit of the Charoen
Pokphand Group agricultural conglomerate and the Bank for
Agriculture and Agricultural Cooperatives (BAAC) to buy
shares that its major shareholder is planning to sell.
NFC announced the names, which include Chia Tai Co Ltd,
Charoen Pokphand's fertiliser marketing unit, after the
Petroleum Authority of Thailand (PTT), a major NFC
shareholder, said it would sell its 20-per-cent stake.

"Chia Tai and the BAAC would strengthen the company's
business outlook. Chia Tai has extensive experience in this
industry while the BAAC is strong in terms of closeness to
farmers, who constitute the largest part of our customer
base," NFC chief executive officer Kamolchai Phatrarodom
said.

Kamolchai said the plan will be submitted to shareholders
for approval. Chia Tai and the BAAC have not responded.
NFC's major shareholders include the PTT and financial
institutions that lack experience in the fertiliser
industry. As a result, NFC has encountered resistance to
plans to strengthen the company, Kamolchai said.
Among the plans stalled was one to build an ammonia
factory, he said.

Ammonia is a major ingredient in fertiliser. Thailand
imports about 4,000 tonnes a year, and its current price is
US$210 (Bt8,568) a tonne.

"If the government wants to support local fertiliser
makers, it could bring natural gas from local gas fields
for the ammonia production. The cheaper natural gas will
help lower the operating cost of local fertiliser makers,
who now depend solely on imports," Kamolchai said.

Kamolchai said fertiliser prices are rising because of
rising oil prices and the weakening baht. The higher price
for oil results in higher costs for raw materials such as
uria, ammonia and ammonium sulphate, he said. Prices for
these materials have already risen about 10 per cent, he
said.

"Coupled with the low purchasing power from farmers, we
have to maintain fertiliser prices lower than the 1999
level. As a result, we stayed in the red in the first half
of this year," he said.  (The Nation  16-Aug-2000)

RUANG KHAO HIGH INCOME FUND: Posts Q2 and H1 net losses
-------------------------------------------------------
Ruang Khao High Income Fund posted a Bt286.93 million net
loss in the second quarter ended June 30, resulting in a
net loss of Bt452.95 million over the first six months of
the year. It recorded losses of Bt0.58 per share in the
second quarter and Bt0.91 over six months.

SUBMICRON TECHNOLOGY: Looking for white knight
----------------------------------------------
A window of opportunity has opened for Submicron
Technology, a local electronic-wafer manufacturer that
is looking for foreign investors to salvage its operation,
has bought a little time after last week's decision by its
creditors to postpone a vote on its debt-restructuring
plan.

Submicron's creditors have filed a bankruptcy suit against
the company.  The Central Bankruptcy court ordered the
company's and company chief executive's assets be placed in
receivership on January 27.  The legal Execution Department
set August 10 for the first creditors' meeting, to begin
discussing debt resolution and to appoint a creditors'
committee.

It was attended by 236 of Submicron's 252 creditors.
Most agreed to postpone the vote, and the receiver approved
postponement until November 9.  Chief executive officer
Charn Uswachoke said the resolution gave Submicron an
opportunity to negotiate with foreign investors.

The company is seeking a Bt23-billion injection of new
equity.  Charn has denied a rumour that he is merely using
the postponement as a delaying tactic.  The rumour had it
that he was hoping a new government might step in and prop
up the company.

Submicron Technology was founded by Charn in 1991. To
construct its manufacturing facility in 1995 Submicron
sought a total of Bt19 billion from 23 local financial
institutions; seven billion of that remains outstanding.
The company was in 1997 planning to list on the Stock
Exchange of Thailand.

But those plans were dashed when the economy crashed: it
delayed its initial public offering.  Things then went from
bad to worse: after the IPO was postponed all creditors
suspended the company's credit facilities. That left
Submicron's factory only 80 per cent complete. Still, what
there is is operational, maintained by the company's
technical personnel.  (The Nation  16-Aug-2000)

UNION FOOTWEAR: Posts Q2 loss
-----------------------------
Union Footwear recorded a Bt1.43 million net loss in the
second quarter of this year. In the same period last year,
the company had a net profit of Bt30 million.
Notwithstanding the Q2 loss, the company registered a net
profit of Bt15.5 million for this year's first half. Last
year for the same time period, it had a net profit of
Bt46.8 million.


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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