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

                             A S I A   P A C I F I C

             Wednesday, August 30, 2000, Vol. 3, No. 169

                                     Headlines


* A U S T R A L I A *

LIBERTYONE: Expects worse first-half this year


* C H I N A  &  H O N G  K O N G *

GOLDEN LINK ENGINEERING LTD: Facing winding up petition
GOLDWIZ HOLDINGS: Posts annual loss
i-CABLE COMM: Posts 1H loss
PRIASIA DEVELOPMENT LTD: Facing winding up petition
TUNG SANG CRANE LTD: Facing winding up petition


* I N D O N E S I A *

PT BANK NEGARA: Posts 2.5T rupiah 1H loss
PT DHARMA SAMUDERA: To pay US$1M debt to BNI


* J A P A N *

ARABIAN OIL: Posts 1H US$169M loss
MITSUBISHI MOTORS: Shares drop on scandal news festers
TAISHO LIFE: Rating downgraded
TAISHO LIFE: Two execs held for fraud


* K O R E A *

DAEWOO GROUP: Foreign debts audit extended three weeks
HANVIT BANK: Implementing layoff program
HYUNDAI SECURITIES: Ross,AIG seek to increase investment
KOREA EXCHANGE BANK: Implementing layoff program
SEOUL BANK: Implementing layoff program
WOOBANG HOUSING AND CONSTRUC.: Declared bankrupt
WOOBANG HOUSING AND CONSTRUC.: Creditors ax fin-aid plan


* M A L A Y S I A *

LANDMARKS: Posts H1 net loss
MALAYSIA AIRLINE: Records RM128M Q1 loss


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

COOPERATIVE BANK OF DAVAO CITY: PDIC takes over
RURAL BANK OF CONCEPCION TARLAC: PDIC takes over


* S I N G A P O R E *

L & M GROUP: Partner claims $19M in damages


* T H A I L A N D *

BANGKOK BANK: Posts H1 loss
BANK OF ASIA: Posts H1 net loss
EMC PLC: Late on filing rehabilitation plan
nBANK OF ASIA: Posts Q2 net loss
THAI GYPSUM PRODUCTS: Posts Q1 net loss
WORLDPAGE CO: Paging unit may shut down


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

LIBERTYONE: Expects worse first-half this year
----------------------------------------------
Australian-based Web media developer LibertyOne has told
the Australian Stock Exchange (ASX) that it expects a
"substantially worse" result for the half-year ended June
30 than in the first half of 1999.

The company cited its write off of a A$12.8 million
(US$7.33 million) investment in Hong Kong-based Chinese
Books Cyberstore - now in liquidation - as a primary cause
of its negative prognosis. LibertyOne was 25 percent owner
of the Hong Kong company.

The company also told ASX that the recent market correction
for technology stocks had an "adverse impact" on its
share value, which lead its board "to adopt a conservative
approach in assessing the carrying value of a number of
investments."

LibertyOne shares have tumbled from more than A$5 ($2.87)
last year to just 14c ($0.08) last Friday. The company
reported an operating loss of A$35 million ($20.06 million)
on revenue of A$24 million ($13.75 million) in the year to
December 31, 1999. Explaining why its latest results aren't
yet ready, LibertyOne told the ASX that an audit review for
the half year is yet to be completed. It expects that the
half-yearly financial results will be available in
early September.

"LibertyOne is presently unable to advise of the likely
result for the half-year," the company adds. (Newsbytes
News Network  29-Aug-2000)


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

GOLDEN LINK ENGINEERING LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on October 25 on the petition of
Cheung Yau Kam for the winding up of Golden Link
Engineering Limited. A notice of legal appearance must be
filed on or before October 24.

GOLDWIZ HOLDINGS: Posts annual loss
-----------------------------------
Net losses for Goldwiz Holdings, which makes and sells toys
under the Playwell brand, for the year ended March 31
totaled $134.71 million. For the 15-month period ended
March 31, 1999, the company posted a loss of $172.25
million.

i-CABLE COMM: Posts 1H loss
---------------------------
Losses at i-Cable Communications in the six months to June
30 narrowed to HK$40 million from HK$126 million a year
earlier.

The pay-television operator attributed the smaller loss to
subscriber growth and a new accounting method.  In the
half, subscribers increased 67 per cent from December 31 to
480,000, with average revenue per subscriber rising to
HK$254.

Chief executive Stephen Ng Tin-hoi said pay-television
contributed a first-time profit of HK$10 million in the
period, despite the loss of sports channel ESPN.  The
company renewed contracts in the period with movie channels
Cinemax, HBO, AXN and Network of the World, he said.

Turnover in the half rose 21 per cent from a year earlier
to HK$775 million. Pay-television services accounted for 97
per cent of turnover.  The company had a record net cash
flow of HK$176 million in the period.  Accounting changes
allowed i-Cable to forgive a HK$75 million charge in pre-
operating expenses.

"We do not expect any loss in the second half," Mr Ng said.
Nonetheless, "we are not sure we can break even this year",
he said.

The company's broadband subscriber base reached 20,000 last
month, and its dial-up subscribers numbered 163,000, or
about 10 per cent of the market.  Mr Ng said the HK$1.46
billion in cash raised from an initial public offering in
November would cover capital expenditure on the company's
cable-television, broadband services, and voice-over
Internet protocol, which was scheduled for trials in the
fourth quarter.

The company is interested in a third-generation mobile
licence via a partnership with sister company New T&T.
Whether another partner is needed depends on regulations
set out by the Office of the Telecommunications Authority
(Ofta).  Mr Ng said the spectrum auctioning would be
acceptable should Ofta choose this option.

Meanwhile, i-Cable is waiting for further relaxation in the
mainland cable market after the country enters the World
Trade Organisation.  "We fixed our goal in Hong Kong in our
first five-year plans," Mr Ng said. "China is our goal in
our next five-year plan."

The company's share price dropped 1.5 per cent to HK$3.375
yesterday after the interim announcement. (South China
Morning Post  29-Aug-2000)

PRIASIA DEVELOPMENT LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on September 20 on the petition of
Leung Sui Wah for the winding up of Tung Sang Crane
Limited. A notice of legal appearance must be filed on or
before September 19.

TUNG SANG CRANE LTD: Facing winding up petition
-----------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on October 18 on the petition of
Leung Sui Wah for the winding up of Tung Sang Crane
Limited. A notice of legal appearance must be filed on or
before October 17.


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

PT BANK NEGARA: Posts 2.5T rupiah 1H loss
-----------------------------------------
PT Bank Negara Indonesia, one of Indonesia's largest
publicly traded state-run banks, posted a first-half loss
of 2.52 trillion rupiah ($302 million) or 55 rupiah per
share.

BNI recorded a 3.73 trillion rupiah or 791 rupiah per share
loss for the same period the year previously. The bank's
net interest costs (the cost of deposits and other funding
in excess of income from risk-weighted assets) was 1.11
trillion rupiah, down 77 percent from the 4.88 trillion
rupiah recorded in the first half of 1999.

BNI's interest income is beginning to outpace what it must
pay out to depositors, which is customary for domestic
banks supported by the government with recapitalization
bonds, as is BNI. BNI received 62 trillion rupiah in
recapitalization bonds to help it recover from a negative
interest spread after a drop in the value of the rupiah in
1998 left the economy devastated and meant many businesses
could not repay loans.

For the year, BNI projects it will post a 1.4 trillion
rupiah loss. The bank attributes the forecast to a delay in
the bank's recapitalization program until June this year
when it was scheduled for late last year.

PT DHARMA SAMUDERA: To pay US$1M debt to BNI
--------------------------------------------
According to PT Dharma Samudera Fishing Industries (DSFI)
management, the company is currently in the process of
repaying debts worth some US$1m to Bank BNI, in the form of
an export working capital loan (EWCL) facility.

President Director of DSFI, Irwan Sutjiamidjaja, in a
letter sent to the JSX, said the credit facility was in the
form of a short-term loan, mature on August 5th 2000.
In a letter to BNI, previously DSFI explained the short-
term loan was to be paid either on the date of maturity or
after review by BNI itself. After the review, the bank will
normally extend the facility for another year, provided the
company doesn't break the terms of agreement.

"Currently the company is waiting for confirmation from the
bank before continuing the debt payment plan," he said.

A new credit agreement will be signed immediately after the
credit facility has been granted an extension, with fund
earlier raised through an Initial Public Offering (IPO), as
mentioned in the company prospectus.  On March 31st, DSFI
completed repayment of Rp1.94bn investment credit to
Bank BNI.

Per June 30, 2000, total liabilities in the company stood
at Rp36.13bn, consisting of a short-term EWCL bank loan
worth Rp19.35bn and US$1.8m (equivalent to Rp12.78bn)
respectively.  DSFI also has a long-term liability to Bank
Mandiri (ex-Bapindo) worth some Rp4bn, which will be mature
by the end of 2005.

Irwan added that up until now, their liability status
remains `current.'  The company owes neither interest debt
nor installment of credit loans. Debt payment will improve
the company's financial leverage, due to lower bank
debt and interest expenses," said Irwan.

Furthermore, after assessing the loan interest expense
factor, DFSI is optimistic net profits for 2000 amounting
to Rp26.76bn are attainable.  During the first half of this
year, DSFI booked a net profit increase of 2,670% to
Rp10.71bn, compared to Rp386.34m in the same period the
year before. Such a jump was due to a net sales increase in
the first half of this year, up 36.30% to Rp101.42bn,
compared to Rp74.41bn in the same period 1999.

DFSI begin listing their shares on the JSX in March 2000,
selling 50m shares or 28.57% of the total shares, the funds
from which were used to pay debt and to increase working
capital.  Meanwhile, total assets were recorded at
Rp168.04bn during the first semester this year, up 82% from
Rp92.31bn in the same period last year.

Total equity per June 30th 2000 was recorded at Rp120.22bn,
rising 270% from Rp32.45bn. DSFI, engaged in the fishery
sector, continues to show an increasingly strong capital
structure, indicated by a debt to equity ratio (DER) of
39%.  (Indonesian Daily News  29-Aug-2000


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

ARABIAN OIL: Posts 1H US$169M loss
----------------------------------
Arabian Oil Co posted a 18.1 billion yen (US$169 million)
net loss in the first half of the year ended June 30. That
compares with a much narrower net loss of 500 million yen
for the same period the previous year.

The net loss accounts for an extraordinary loss of 18
billion yen primarily due to a seizure of assets by the
Saudi Arabian government following a decision not to renew
the company's drilling rights.

Sales grew 15 percent to 83.1 billion yen and the pretax
profit was up 35 percent to 24.3 billion yen. Critical to
Arabian Oil's viability is whether it can renew its
contract to operate the Kuwaiti half of the Khafji oil
field, which contract is due to expire in January 2003.

MITSUBISHI MOTORS: Shares drop on scandal news festers
------------------------------------------------------
Shares in Mitsubishi Motors (MMC) dropped 12 perccent
Monday on fears that the firm's president would be forced
to resign over a designed cover-up of customer complaints.

Analysts noted that the share decline was reflective of
concerns that the potential departure of president
Katsuhiko Kawasoe might damage Mitsubishi's recent alliance
with DaimlerChrysler. Kawasoe was a driving force behind
convincing Daimler's decision to acquire a 34 percent stake
in the Japanese automaker last March.

As the speculation continues to brew, MMC vice president
Takashi Sonobe is viewed as a possible successor. Sonobe
was primarily responsible for restoring profitability to
Mitsubishi's US operations.

MMC has recalled 620,000 vehicles in recent weeks after it
was discovered that the company concealed potentially
serious auto defects for more than 30 years. The automaker
has admitted that senior executives were aware of the
problem and failed to do anything about it.

Concerns about penalties for Mitsubishi and the possible
resignation of the president contributed to drag MMC's
shares down 51 yen to close at 361 yen.

TAISHO LIFE: Rating downgraded
------------------------------
Japan's Rating and Investment Information Inc. lowered its
rating on Taisho Life Insurance Co.'s ability to pay
insurance money from B to CCC on Monday, based on publicly
available information.

The rating agency said it believes that there is a high
risk of Taisho Life defaulting on its obligations to its
policyholders.  The rating downgrade follows the order of
Japan's Financial Services Agency to suspend some of Taisho
Life's operations.

TAISHO LIFE: Two execs held for fraud
-------------------------------------
Prosecutors have arrested two board members of Taisho Life
Insurance Co. on suspicion of defrauding the company out of
8.5 billion yen.

A special investigation squad of the Tokyo District Public
Prosecutors Office arrested Yoshihiko Kokura, 39, and
Takashi Yamaguchi, 49 on Monday.  They also searched the
company's main office in Chiyoda Ward, Tokyo, the homes of
the two suspects and other locations for evidence.

Kokura is president of Claremont Capital Holding Inc., a
Tokyo-based investment firm and Taisho's largest
shareholder, becoming same when it bought new shares
offered by the insurer to increase its capital. Kokura has
served as a part-time board member of Taisho Life since
April.

Investigators say the two suspected executives formulated
and implemented a plan of pretending to arrange deals to
buy certificates of deposits handled by an overseas bank.
They contend the pair bilked Taisho Life out of an
aggregate 8.5 billion yen in six different transactions
between July 18 and 26 by claiming the money was to pay for
the purchase of the CDs.

Prosecutors maintain the men actually used the money to pay
off Claremont Capital's debts. The two execs allegedly told
another board member of Taisho Life that the money was
being placed in high-yield short-term CDs, with no
exchange-rate risk because the certificates were yen-
denominated.

The pair then arranged for Taisho Life to transfer money
into a bank account effectively controlled by Kokura. The
money from Taisho then allegedly was used to partially fund
Claremont's purchase of Taisho Life's new shares allocated
to the company.

Kokura personally and in the name of Claremont owned about
80 percent of the shares in Taisho Life. Yamaguchi became a
full-time board director of Taisho Life in April upon
Kokura's recommendation.


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

DAEWOO GROUP: Foreign debts audit extended three weeks
------------------------------------------------------
The Financial Supervisory Commission is extending the final
audit on Daewoo Group's foreign debts for their purchase
from foreign creditors for an additional three weeks until
Sept. 18.

The FSS also reported that Daewoo's domestic creditors and
the Korea Asset Management Corp. have decided to buy $2.1
billion in Daewoo debts from foreign creditors at a
discount.  According to the FSS, foreign creditors had
applied to sell a total of $4 billion of their loans to
Daewoo, but a due-diligence audit showed that only $2.6
billion has been confirmed.

HANVIT BANK: Implementing layoff program
KOREA EXCHANGE BANK: Implementing layoff program
SEOUL BANK: Implementing layoff program
------------------------------------------------
Weak commercial banks that are required to present
normalization plans by the end of September are instituting
voluntary layoffs on a large scale as part of self-rescue
efforts.

Seoul Bank has taken the lead in downsizing by planning to
lay off 650 employees. The figure agreed between the bank's
management and trade unions represents 14 percent of the
bank's 4,588 total employees.  Other banks are also busy
mapping out similar plans.

Hanvit Bank is expected to reduce its workforce by 10
percent of its total 10,898 employees before or after the
Chusok holiday (Sept. 11-13). The percentage has been
agreed to by the employee union involved.  Korea Exchange
Bank is also considering laying off 10 to 20 percent of its
5,378 staff.

The banks' voluntary downsizing comes from fear that they
will face leaner, mandatory government layoffs if they fail
to meet management standards set by the government.

HYUNDAI SECURITIES: Ross,AIG seek to increase investment
---------------------------------------------------------
A group led by Wilbur Ross and American International Group
are proposing to increase their investment in Korea's
second biggest brokerage house, Hyundai Securities.

The fresh capital injection would bring the group's total
investment in Hyundai Securities to US$1 billion. The
investment would make Ross and AIG the largest investors in
Korea with a 23.7 percent stake.

The move to allow increased investment is part of Hyundai
Group's US$1.5 billion bailout plan which was announced in
May. The much needed investment funds will go towards
propping the ailing Hyundai's Investment Trust & Securities
Company (HITSC), Hyundai money management arm. HITSC has a
net liability of nearly 1.2 trillion won (US$1.1 billion).

WOOBANG HOUSING AND CONSTRUC.: Declared bankrupt
------------------------------------------------
Woobang Housing and Construction Co. was declared bankrupt
Monday when it failed to clear debts totaling 1.49 billion
won ($US1.33 million).

The debts are comprised of 1,027 million won from the Seoul
Bank, 150 million won from Housing and Commercial Bank, 148
million won from Peace Bank, 144 million won from Taegu
Bank, 13 million won from Hanvit Bank and 8 million won
from Pusan Bank.

Woobang filed an application for receivership Monday
evening with Taegu District Court. Earlier that day, 22
creditor banks voted down Wooban's request for an
additional loan of 110.7 billion won.

A leading construction firm in the Taegu area, Woobang was
placed under a workout program in November 1998 and
received fresh loans of 308.3 billion. Last June, however,
it began to experience new financial troubles.

WOOBANG HOUSING AND CONSTRUC.: Creditors ax fin-aid plan
--------------------------------------------------------
Seoul Bank and other creditors yesterday voted down a
bailout package for Woobang Housing and Construction Co.,
which calls for the extension of 110.7 billion won in
additional loans to the cash-strapped construction firm, a
Seoul Bank official said.

In the wake of the rejection, there is a high possibility
that Woobang may be placed under court receivership,
analysts said. Woobang would be the first among domestic
companies now under debt workout programs to be placed
under receivership.

At a meeting of the creditor steering committee, 22
creditor banks turned down the aid plan as Woobang's
liabilities far exceed its debts, with only 54.8 percent
casting ballots in favor of it, the Seoul Bank official
said. A three fourth's majority vote is required for the
passage of the aid plan.

Unless the creditors meet again and give the green light to
the financial aid by today, Woobang will be put under court
receivership, the official said.  Woobang's liabilities
total around 1 trillion won and a due-diligence audit
showed that the company incurred a special loss of 376.8
billion won involving sales, he added.

In the first half of this year, the construction company
posted an operating loss of 108.1 billion won, but chalked
off a net income of 18.8 billion won thanks mainly to huge
special profits.  Woobang recorded a non-current, or
special, profit of 183.7 billion won coming from debt
write-offs granted by creditors in the January-June period,
the official said.

Earlier on July 21, creditors had decided to extend fresh
loans of 155.1 billion won to Woobang but actually lent
only 44.4 billion won to keep it going.  They had agreed to
determine whether to lend the remaining 110.7 billion won
after later reviewing the results of a due-diligence audit
into the company.

Placed under a debt workout program in November 1998,
Woobang had received financial aid of about 380 billion won
from creditors and but ran into liquidity problems as it
faced difficulties borrowing money.  Meanwhile, analysts
said that the creditors' rejection reflects the
government's firm will not to hesitate in forcing workout
companies deemed un-viable out of the market. (Korea Herald
29-Aug-2000)


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

LANDMARKS: Posts H1 net loss
----------------------------
Landmarks recorded a first half ended June 30 loss of 4.296
mln rgt. By comparison, the company posted a profit of
7.722 million rgt for the same period last year. Loss per
share was 0.93 sen compared with an earnings per share for
the same period last year of 1.67. No interim dividend was
declare this first half.

Sales in the first half this year decline to 72.484 million
rgt, down from 102.363 million rgt the first half last
year. Operating profit likewise fell to 26.035 million rgt
this first half from 27.096 million rgt the first half last
year.

Landmarks said its fall in turnover primarily was due to
disposal of President Hotel Sdn Bhd. As for its other
units, PGK Sdn Bhd posted a lower turnover but the loss was
offset by turnover increase in the hotels operating in
Langkawi. The group's hotels generally performed better, in
particular, The Datai, which maintained an occupancy rate
of 84 percent and The Andaman, which recorded a 13 percent
rise in occupancy rate to 51 percent.

Sungei Wang Plaza Sdn Bhd recorded a 5 percent increase in
profit compared to the previous corresponding period due to
the additional yield derived from IT@Sungei Wang Centre.
As for the group's associate companies, Shangri-La Hotels
(Malaysia) Bhd performed better but Australian Hospital
Care Ltd's suffered a 1.6 million rgt loss, down from a 3.0
million rgt profit the previous year.

The decline was attributed to a profit margin squeeze in
the private hospitals industry in Australia and losses
incurred on a public hospital managed by the hospital for
the Victoria state government. The company also reported
that Australian Hospital Care has commenced legal action
against the government for losses arising from a breach of
contract.

Landmarks currently is engaged in a debt restructuring
exercise involving divestiture of certain of its assets.

MALAYSIA AIRLINES: Records RM128M Q1 loss
-----------------=-----------------------
Malaysia Airline (MAS) recorded an after-tax loss of RM128
million for the first quarter ended June 2000. By
comparison, the company posted a RM54 million profit for
the same period last year.

Sales were up to RM2.15 billion versus Rm1.72 billion in
the same period last year. MAS said the group posted a gain
of RM235.7 million in the first quarter from the sale of
two DC10-30s and three Boeing 737-300Fs and the sale and
leaseback of two other aircraft. The company had recorded a
gain of RM78.3 million from the sale and leaseback of nine
aircraft engines in the preceding quarter. MAS also noted
it had been adversely affected by raises in fuel prices.


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

COOPERATIVE BANK OF DAVAO CITY: PDIC takes over
RURAL BANK OF CONCEPCION TARLAC: PDIC takes over
------------------------------------------------
After receiving complaints from beleaguered depositors, the
Philippine Deposit Insurance Corp. (PDIC) took over two
rural banks which failed to service withdrawals for a given
period.

In a forum yesterday, PDIC president Norberto C. Nazareno
said PDIC was able to recommend the closure of the Rural
Bank of Concepcion Tarlac in northern Luzon and Cooperative
Bank of Davao City in Mindanao.

"We were able to close down these rural banks because some
depositors complained to us and called our attention to
these banks which have not been servicing withdrawals for
quite some time already," he said.

Mr. Nazareno said PDIC closed down the Rural Bank of
Concepcion last month and Cooperative Bank of Davao City
two weeks ago and will start servicing insured deposits of
the latter within the week.  "We are planning to pay-off
insured deposits within the week... those who have accounts
(worth) 10, 000 Philippine pesos ($222 at PhP45.020=$1) and
below," he said.

The PDIC chief noted the rural bank has a small number of
depositors with 6,000 deposit accounts amounting to only
PhP1 million ($.022 million).  Mr. Nazareno, however, said
the state deposit insurer is still open to the possibility
of reopening the closed rural banks since the 90-day
receivership period provided by the law for PDIC to look
for ways to reopen or rehabilitate a closed bank has not
yet lapsed.

Mr. Nazareno stressed the need for the market's involvement
in the regulation or supervision of banks.  "We have
established a depositors' assistance center at the PDIC and
we hope that depositors will make use of that and report to
us whatever complaints they have so we can look into it,"
he said.

Meanwhile, Mr. Nazareno also stressed the need for the
restoration of PDIC's power to look into the deposit
records of banks prior to their closure.  Such power was
removed with the passage of the new Central Bank Act early
this year. The PDIC, however, hopes to recover this
regulatory function through the passage of another bill
amending its charter.

"My argument has always been: why do you expect us to
insure something which we can't even see," he added.

He stressed that banks should not worry that PDIC will
divulge confidential information it will come across in the
process of its examination.  "Just like bank employees who
have access to confidential information, the same rule can
also be applied to PDIC," he added. (Business World  29-
Aug-2000)


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

L & M GROUP: Partner claims $19M in damages
-------------------------------------------
A court injunction has been filed in Jakarta against
Singapore-listed L&M Group Investments on its right to a
32-per cent stake in Van der Horst Indonesia -- one of the
companies it had bought from Van der Horst (VDH).

The injunction was filed by Jakarta Depot Satellite (JDS)
which is claiming damages of US$11 million (S$18.9 million)
for lost earnings from a joint project which has been
suspended. This is the second one filed by JDS, which
wants to seize the 32 per cent stake or other assets for
compensation.

JDS had been working with VDH on a pipeline project in
Jakarta for Indonesian state-owned oil giant Pertamina
before the economic crisis began three years ago. The deal
was done through VDH's wholly owned subsidiary, VDH Teguh
Sakti, which in turn owned the 32 per cent stake in the
Jakarta-listed VDH Indonesia.

VDH had a direct shareholding of 17 per cent in VDH
Indonesia, which gave it a total 49 per cent stake in the
company.  Both VDH Teguh Sakti and VDH Indonesia have been
acquired by L&M. L&M chief executive officer Edward
Soeryadjaya, who was in Jakarta yesterday, said over the
telephone that the case and its claims had no basis
and there had been a "misrepresentation of facts."

"We did not postpone the project...it was Pertamina which
postponed the project," he said. "To me, it is a joke."

His view was supported by KPMG partner Michael Ng
who is one of VDH's judicial managers. He said the project
was stalled when Pertamina suspended and put under review
in mid-1998, all contracts made during the reign of former
president Suharto.

VDH, once controlled by Indonesian businessman Johannes
Kotjo, has fallen on hard times.  In January, it went under
judicial management voluntarily to restructure $119 million
worth of debt.  Trading of its shares, which are quoted on
the Singapore Exchange, has since been suspended.

JDS filed its first injunction shortly after, blocking any
possible sale of the 32 per cent stake owned by Teguh Sakti
in VDH Indonesia and claiming US$11 million in losses due
to the suspension of the contract.  Early this month, the
judicial managers sold VDH's Indonesian assets -- including
the 49 per cent stake in VDH Indonesia -- to L&M for $11
million.

L&M also made a bid then to acquire the remaining parts of
VDH for $5 million and assume $19 million of its
liabilities.  Mr Soeryadjaya remained sceptical about the
injunction, saying: ""It is just another way which
Indonesians use to prevent foreigners from exerting
influence over businesses in Indonesia."

This is because L&M is seen as a Singapore-based company,
he said. (The Straits Times  29-Aug-2000)


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

BANGKOK BANK: Posts H1 loss
---------------------------
Bangkok Bank recorded a consolidated net loss of Bt 22.1
billion for the first half of this year. That compares with
a net loss of Bt 24.6 billion for the same period last
year.

BANK OF ASIA: Posts H1 net loss
-------------------------------
Bank of Asia posted a consolidated net loss of Bt 3.4
billion for the first half of this year. By comparison, the
bank recorded a net loss of Bt 1.8 billion for the same
period a year ago. The bank attributed this year's H1 loss
mainly to an increase in bad debt and doubtful accounts.

EMC PLC: Late on filing rehabilitation plan
-------------------------------------------
EMC Public Company Limited has reported to the Stock
Exchange of Thailand that it has filed a petition with the
Central Bankruptcy Court on August 3 to have the court
approve the rehabilitation process and appoint EMC Power
Co. Ltd. as rehabilitation planner.

The bankruptcy court accepted the petition for
reorganization and a trial date was set. The order will be
noticed in the Government Gazette on 21 September 2000.
The company will submit the rehabilitation plan with the
Reorganizing Debtors' Business Operations, and will
execute the plan afterward.

nBANK OF ASIA: Posts Q2 net loss
--------------------------------
nBank of Asia posted an audited second quarter net loss of
Bt3.55 billion. By comparison, the company recorded a
narrower net loss of Bt1.58 billion in the same period a
year earlier. For the first half of this year, the bank
posted a Bt3.35 billion net loss, compared with a Bt1.75
billion net loss for the same period last year.

THAI GYPSUM PRODUCTS: Posts Q1 net loss
---------------------------------------
Thai Gypsum Products Plc posted a net loss of 14.66 million
baht for the first quarter of this year, compared with a
net loss of 158.76 million baht for the same period a year
ago.

Chief operating officer David Michael Jones said he expects
the company to post an operating profit in the year
to March 2001, however. He cites improving productivity and
efficiency as well as increased customer demand and reduced
costs for the optimism. At a press conference, he estimated
that revenue for the year to March 2001 will grow 15-20
percent from the previous year.

Richard J. Cousins, chief executive of the BPB Group, the
parent of Thai Gypsum, added that a stronger economy and a
positive outlook for Thailand and the Asean region have
provided BPB with confidence in making further investment
in the region.

In April, Thai Gypsum was removed from a rehabilitation
plan under the Central Bankruptcy Court's process due to
loan repayments it has made, according to Thai Gypsum chief
executive officer Krisada Kampanatsanyakorn. He added that
the stock Exchange of Thailand has not allowed the company
to be removed from the rehabilitation sector because
officials wanted to observe the company's performance over
the next two quarters.

WORLDPAGE CO: Paging unit may shut down
---------------------------------------
A paging unit of Total Access Communication Pcl, Thailand's
second-largest mobile phone operator, is in financial
trouble and may be shuttered, Bangkok Post reported, citing
Olarn Pientam, a senior executive vice president of the
Telephone Organization of Thailand.

Worldpage Co., the smallest of Thailand's six paging
operators, has more than 100 million baht ($2.5 million) of
debt and owes the TOT another 30 million baht. The company
offered to return its concession to the TOT in exchange for
debt forgiveness, the paper said.

The TOT is considering whether to let the company continue
operating, or to shut it down and compensate its 70,000
subscribers, the paper said, citing Olarn.  Total Access in
July canceled plans to sell a majority stake in WorldPage
to Bliss Tel Co., a telecommunication equipment distributor
partly owned by Samart Corp. of Thailand and Audiovox Corp.
of the U.S. after negotiations stalled over price. Star
Page Co. of Hong Kong also owns 20 percent of WorldPage.
(Bloomberg, Bangkok Post  29-Aug-2000)


S U B S C R I P T I O N  I N F O R M A T I O N

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