---

     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, September 13, 2000, Vol. 3, No. 178

                                     Headlines


* A U S T R A L I A *

ESMERALDA EXPLORATION: To raise capital, relist, regroup
NORMANS WINES: Harvests nearly $4M annual loss
ONE.TEL: Stock takes a beating
SHELL AUSTRALIA: Cuts jobs after posting a loss


* C H I N A  &  H O N G  K O N G *

AKAI HOLDINGS: Liquidation ordered
BRIGHT STATE CO.LTD: Facing winding up petition
CAPITAL IRON & STEEL: Restructures with debt swap
GUANGXI TRUST & INVEST.CORP.: Assets to be auctioned
HENDERSON CYBER LTD: Posts annual loss
HENDERSON CYBER LTD: Posts 1H net loss
NANNING ERSONG HOSPITAL: Private firm takes over
SWANK INTERNATIONAL: Post widern 1H net loss


* I N D O N E S I A *

BANK RAKYAT INDONESIA: In danger of collapse
PT SIWANI TRIMITRA: Bankruptcy suit filed against it


* J A P A N *

JF JAPAN OTC FUND: Posts 1H net loss


* M A L A Y S I A *

PERWAJA STEEL: ACT to investigate massive losses
TECHNOLOGY RESOURCES: To work out eurobond debt restructure


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

NATIONAL STEEL CORP.: To seek extension of debt moratorium
PHIL. APPLIANCE CORP.: President relieved, audit ordered
URBAN BANK: Economic sabotage defendants identified


* S I N G A P O R E *

ASIA FOOD & PROPERTIES: Posts first-half loss
PERMASTEELISA PACIFIC HLDGS: Posts 1H net loss


* T H A I L A N D *

ROYAL CERAMIC INDUS.: To file rehab plan Oct. 8
SRIVARA REAL ESTATE GROUP: Posts 1H net loss


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

ESMERALDA EXPLORATION: To raise capital, relist, regroup
--------------------------------------------------------
Esmeralda Exploration, the Western Australian (WA)-based
company involved in a spill in Romania in January this
year, plans to raise capital, get relisted and restructure
itself.

On September 8, it revealed plans to raise over $A1
million, probably by using a share placement, to reinitiate
drilling in Romania. It also intends to have its stock
relisted on the Australian Stock Exchange before the end of
the year. The stock ceased trading in February and was
placed under administration in March.

Administrator Kim Strickland confirms the company has
claims against it totaling some $A200 million, including
$A180 million from the Republic of Hungary. The firm
expects to receive money from insurance, however, as well
as from legal actions it has against others. It intends to
set up a trust to deal with the creditors claims.

NORMANS WINES: Harvests nearly $4M annual loss
----------------------------------------------
Normans Wines recorded a $3.97 million loss for 1999-2000,
leaving sharehoolders without a final dividend.

The company attributed the plunge into the red to heavy
writedowns and restructuring costs combining with a
shortage of grapes.

Sales revenue for 1999-2000 fell 17.2 percent to $39
million; profit before extraordinary expenses and tax
likewise dropped to $142,000, down substantially from $4.48
million the year before.

Normans posted extraordinary losses before tax of $6.2
million, including $2.2 million for inventory writedowns
for both bottled and bulk wine stocks, another $1.52
million for restructuring costs and $1 million more for
label-repositioning costs. Additionally, a lower-than-
expected grape tonnage resulted in bulk wine sales being
less than forecast.

Normans chairman Lionel Krongold optimistically offered
that the outlook was brighter for 2000-2001, with strong
sales already being recorded in July and August.  A new
management team took office in January, Robert Hay assuming
the position of managing director. The stock nonetheless
has dropped to $1.05, it resting at $1.57 in mid January.
The company has appointed former Bonlac Foods managing
director Phillip Scanlan to the board, expecting to appoint
another director soon.

ONE.TEL: Stock takes a beating
------------------------------
One.Tel shares were hammered yesterday after it unveiled a
$291 million loss for the full year, sinking nearly 10
percent to close at 95c, down 10c.

One.Tel, which is backed by Kerry Packer and News Limited,
publisher of The Australian, had already flagged the result
last month but yesterday unveiled its full-year accounts in
detail to a bearish reception. One.Tel's loss compared with
$7 million profit in the previous year and reflected a
switch in accounting policies after the Australian
Securities Investment Commission pulled up One.Tel on its
practice of deferring costs.

Analysts said One.Tel would have to scramble to build its
customer base still further to meet its obligations on the
$1.1 billion mobile phone network it has built in
Australia.  US giant Lucent financed the network's
development but One.Tel starts to take on the debt next
year.

One analyst, who declined to be named, said there was
concern about increased competition in the mobile phone
market which was cutting into margins.  "But they have done
a fantastic job in Europe," he said, referring to One.Tel's
surge in revenues there.  One.Tel is expecting to be
profitable at the bottom line in five years. (The
Australian  12-Sept-2000)

SHELL AUSTRALIA: Cuts jobs after posting a loss
-----------------------------------------------
Royal Dutch/Shell Group, the world's second-biggest
publicly traded oil company, said it will make more staff
cuts at its Australian operations after its oil refining
business failed to return a profit.

The redundancies will occur mostly in the company's
commercial marketing division over the next one to two
years, Peter Duncan, Shell Australia's chief executive,
said in an interview. The size of the job cuts has yet to
be decided.

"I don't want to talk about numbers, but there will some
fairly significant reductions in staff," Duncan said.

Shell Australia's commercial marketing division, which
includes lubricant production, customer service and product
marketing, employs about 800 people, mostly in Melbourne
and Sydney. Shell Australia said in June up to 40 jobs will
go at its Clyde refinery, near Sydney, as part of cost
reductions aimed at improving the 72-year-old plant's
competitiveness.

The decision followed Shell's announcement in May it
intended to cut $2 billion in costs from its global
operations by the end of the year.  Australia's four
refiners, local units of Exxon Mobil Corp., BP Amoco Plc
and Royal Dutch/Shell, as well as Caltex Australia Ltd.,
face mounting pressure to close at least two of the
country's eight refineries to deal with competition from
Asia and to meet new fuel emission standards.

BP Australia, a unit of BP Amoco Plc, said in July it plans
to halve the 400-strong workforce at its Kwinana refinery,
the country's biggest, because of over-capacity in the
Asia-Pacific region. Declining profits from oil refining
has prompted a review of the company's Australian
operations, Duncan said.

"We've been through a number of years making our refineries
more efficient," Duncan said. "Because the refineries
aren't getting bigger, that means less people."

Shell said last month profits from oil refining in
Singapore, the center of oil refining in Asia, fell to an
average 5 U.S. cents a barrel in the second quarter, from
40 U.S. cents a barrel the same period a year earlier.

"The refining business in Australia has made a loss so far
this (calendar) year," Duncan said. "All of the Internet
and electronic buying processes are squeezing margins, so
we've got to adjust the way we do business."

Government regulations requiring cleaner fuels by 2006 are
expected to cost Australian refiners A$1.32 billion ($738
million) in upgrades over the next five years. The
restrictions will allow a maximum 50 parts per million of
sulfur in diesel compared with 500 parts per million at
present.

Shell said in June it may close the Clyde refinery, which
supplies about 40 percent of Sydney's petroleum needs, as
early as 2002 unless it meets efficiency targets by the end
of the year.  Shell said Clyde, which has a processing
capacity of 81,000 barrels a day, will not remain open
beyond 2006.  (Bloomberg  12-Sept-2000)


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

AKAI HOLDINGS: Liquidation ordered
----------------------------------
The companies judge has taken the drastic step of ordering
the immediate liquidation of Akai Holdings, amid debts of
US$856 million and creditors' accusations of "serious
misconduct" and missing assets.

A proposed restructuring involving white knight Toyo
Holdings was thrown out after failing to get a basic
consensus from creditors despite four months of
negotiations.  Provisional liquidators have moved in to
carve up the consumer electronics company and its
manufacturing and distribution arm, Kong Wah Holdings.

It is one of a handful of listed companies deemed
unsalvageable by the courts in the wake of the 1997
financial crisis, with judges preferring to exhaust
restructuring possibilities.  However, Akai's debts are
undisputed. It also recently posted Hong Kong's largest
corporate loss, haemorrhaging to the tune of US$1.72
billion in the year to January 31.

The company cited 11 extraordinary loss items which
included a US$436.9 million provision for litigation.
A banking syndicate, involving Den Danske Bank
Aktieselskab, Bank of Scotland and Emirates Bank
International, filed petitions to wind up Akai in January.
Efforts to restructure the group initially failed to
appease creditors.

A revised proposal - which the company claimed was
proceeding in a "positive fashion" - was too vague and too
late, Mrs Justice Doreen Le Pichon ruled.  "At least four
months have come and gone without any consensus being
reached as to its basic terms," she said in a written
judgment, later adding, "That negotiations were proceeding
in a 'positive' fashion could mean any number of things.
The word used was too elastic and imprecise."

Although an initial recovery rate for bank creditors ranged
from 4 per cent to 100 per cent under the plan, "no one saw
fit to approach the question from the perspective of
unsecured indebtedness", the judge said.  The petitioning
banks had also been critical of Akai's failure to "address
in any meaningful way the numerous areas of concern," the
judge noted.

These included the lack of explanation for the huge
operational loss of US$1.82 billion reported by the group
for the year to January 31.  Akai and Kong Wah were also
accused by the banks of failing to give information on
their financial position for the period from February to
July this year.

The companies were also slated by the creditors for failing
to give details relating to the "loss" of assets since the
presentation of the winding-up petitions.  "Implicit in all
of this were allegations of serious misconduct on the part
of the companies and/or Toyo and/or those who control
them," the judge said.

Mrs Justice Le Pichon declined to express any views or
further probe the claims.  Evidence filed by the companies
did not address the allegations substantively, she said,
which may have been due to time constraints. However, the
banks did file several affidavits into evidence relating to
the allegations.

The judge was highly critical of Akai and Kong Wah's
"surreptitious manner" in suddenly producing letters to
show it had additional support from creditors in order to
win time to pursue the restructuring.  However, support
from creditors holding 66.5 per cent of the scheme debt was
not enough to justify an adjournment.  Things may have been
different had there been support from 66.5 per cent of the
scheme creditors, Mrs Justice Le Pichon said. (South China
Morning Post  12-Sept-2000)

BRIGHT STATE CO.LTD: Facing winding up petition
-----------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 8 on the petition of
Tan Ping, Isabella for the winding up of Bright State
Company Limited. A notice of legal appearance must be filed
on or before November 7.

CAPITAL IRON & STEEL: Restructures with debt swap
-------------------------------------------------
Capital Iron and Steel Corp, one of China's steel giants,
has officially launched a new subsidiary as part of its
restructuring program, China Daily reported.

The steel giant has a 53% stake in the new subsidiary,
called Shougang New Steel Co Ltd, according to company
President Luo Bingsheng. There are three other shareholders
in the new firm, launched yesterday. They are China
Huarong, Orient and Cinda, all assets management
corporations (AMC).

The three state-owned AMCs were allocated the remaining
shares after entering into a debt-for-equity swap valued at
RMB3.56 billion (US$428.91 million). The company signed the
swap agreement with the three AMCs in March.

"The launch of the new company signals a breakthrough in
the giant's assets and industrial restructuring," Luo said
at the launch ceremony.

The new company will remain in the steel production
business, Luo added, though the steel giant has already
begun to shift its development focus to the high-tech
sector and is reducing its steel production.  Luo said the
steel giant wanted to become a high-tech company and such
production was expected to grow to half of its total output
within next 10 years.

In response to the central government's call for steel
production controls, the firm plans said it was determined
to keep its steel output below 7.30 million tons this year.
The government aims to slash national steel output by 11
million tons this year to reduce oversupply in the domestic
market.

The steel giant, which has produced steel and iron for more
than 80 years, will move into software development,
integrated circuit design and micro-electronic industries,
said Luo.  The municipal government has decided to upgrade
the high-tech sector so it will become the dominant area in
the city's economy.

To fulfil its targets, the steel giant will invest RMB3.2
billion (US$385.6 million) in the high-tech sector during
the country's 10th Five-Year Plan (2001-2005).  The
company's high-tech division reported sales of more than
RMB1.8 billion (US$217 million) last year.

"The debt-for-equity swap has injected vigor into our
operations," Luo said.

The swap will help the firm ease its debt burden and speed
up the setting up of a modern enterprise. The steel giant
was heavily in debt because it had to depend on bank loans
for technical upgrades under the planned economy.
(ChinaWeb.com  11-Sept-2000)

GUANGXI TRUST & INVEST.CORP.: Assets to be auctioned
----------------------------------------------------
Some assets of Guangxi Trust and Investment Co are to be
auctioned next week to repay debts, the China Daily
reported.

The Shaanxi Jinxin Auction House said it would auction the
firm's 20% stake in the China Nanfang Fund Management Co
and 6 million shares issued by Shenzhen-listed Kaiyuan
Fund, a mutual fund managed by Shenzhen-based Nanfang.
The auction, to be held in Shenzhen next Thursday, "was
entrusted by law enforcement units", Jinxin said in a
statement published in the official China Securities
newspaper. It gave no further details.

A Jinxin official told reporters the money raised from the
auction would be used to "repay debts", but declined
further comment.  A Guangxi Trust official declined to
comment on the auction, but said the firm was just one of
China's 200-plus ITICs (international trust and investment
corporations) "with some debts" and awaiting restructuring.

"We are waiting for instruction from upper authorities," he
said from the firm's headquarters in Nanning, capital of
Guangxi Zhuang Autonomous Region.

The central government began to restructure the indebted
sector through mergers or closures following the 1998
collapse of Guangdong International Trust and Investment
Corp (GITIC) for inability to pay debts amounting to
US$4.7 billion.

Most ITICs were formed in the 1980s by provincial
governments as a vehicle to raise funds for developing
local economy.  Many are believed to be facing payment
problems after they misused funds or invested heavily in
industrial or real estate projects that went sour. Some
funds were used in the mainland's stock markets.
(ChinaWeb.com  11-Sept-2000)

HENDERSON CYBER LTD: Posts annual loss
--------------------------------------
Henderson Cyber Ltd., Internet arm of Henderson Investment
Ltd., recorded a HK$17.6 million net loss for the year
ended June 30. That was substantially greater than the
HK$0.11 million net loss recorded for the previous year. r.
Loss of share was 14 HK cents compared with 0.1 HK cent a
year before.  Revenue, however, doubled to HK$5.5 million
from HK$1.97 million. No final dividend was proposed.

HENDERSON CYBER: Posts 1H net loss
----------------------------------
Growth Enterprise Market-listed Henderson Cyber reported a
loss of HK$12.02 million between January 10 and June 30,
due to having had minimal income during the start-up stage.

The company, a joint venture between Henderson Investment
and its associate Hong Kong & China Gas, was incorporated
on January 10.  Its first-half losses came mainly from a
combined HK$9.27 million administrative and operating
expenses plus HK$3.02 million from selling and distribution
costs. The losses were partly offset by minority interest
income of HK$173,000.  Losses per share were HK$5.55 and no
final dividend was struck.

NANNING ERSONG HOSPITAL: Private firm takes over
------------------------------------------------
For the first time in Guangxi province, a private company
is taking over a failing public hospital and assuming all
of its debts.

Tongjida Pharmaceutical just announced completion of year-
long negotiations with various Guangxi governmental
departments allowing it to assume the debts, liabilities
and future assets of the Nanning Ersong Hospital.
According to a report in yesterday's China Business Times
the hospital amassed 1.3 million yuan (about HK$1.2
million) in debt.  Its assets are estimated at 1.8 million
yuan.

"This takeover is a big step towards enhancing the
development of non-governmental funds in our economy," said
Lin Yiji, vice-chairman of the Nanning People's Political
Consultative Congress.

Mr Lin also encouraged other private, joint-venture and
wholly owned foreign companies to invest in the city's
economy.  Tongjida has pledged to funnel between one
million yuan and two million yuan in the next year to
revamp the hospital's exterior and to acquire more advanced
medical equipment.

Founded in 1957, Ersong's treatment facilities are outdated
and the local government has lacked sufficient funds to
make necessary improvements. Over the past few years, the
rate of individuals seeking outpatient treatment at Ersong
has been consistently falling.  According to the report,
all 124 of the hospital's workers are owed an unspecified
amount of back pay. Tongjida is committed to repaying all
workers what they are owed, in addition to supplying
severance packages to the 43 staff who are retiring.

"We will be using both hard and soft measures, and
utilising advanced science and systems to manage the
hospital. At the same time, we will work to strengthen
space allocation and lateral communication, so that we can
meet the most advanced technological levels within the
country and without," Tongjida president Yu Yunhui was
quoted as saying in the Worker's Daily.

Tongjida's business has burgeoned since its founding in
1994. Over the past six years, the company has established
four independent stores and seven chain stores in Nanning,
Guangxi's capital.  Mr Yu believes his pharmacies are
particularly successful because they have an "open-shelf"
format, allowing patrons to examine and select products for
themselves, without having to rely on a salesperson or
nurse controlling which medications they can choose from.
(South China Morning Post  12-Sept-2000)

SWANK INTERNATIONAL: Post widern 1H net loss
--------------------------------------------
Swank International Manufacturing Co., a spectacle frame
and glass maker, recorded a HK$14.3 million net loss for
the six-month period ended June 30, up from the HK$2.3
million net loss for the same period a year earlier.
Loss per share was 2 HK cents compared with 0.5 HK cents.
Revenue fell 20 percent to HK$145 million. No interim
dividend will be distributed.


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

BANK RAKYAT INDONESIA: In danger of collapse
--------------------------------------------
Bank Rakyat Indonesia, a state-owned lender, is in danger
of collapsing under a proposed sale of the bank's corporate
loans, the finance minister said.

Prijadi Praptosuhardjo said a proposal for the bank to sell
6.2 trillion rupiah (S$1.3 billion) of loans could leave it
without enough interest-bearing loans to stay afloat. The
proposal would have the bank sell the loans to focus its
lending to small and medium-size enterprises.

"The bank might collapse if it has to sell all its
corporate loans this year," Mr Prijadi told reporters
before a meeting with the Indonesian Cabinet's economic
team. "The government is now holding talks with the bank
to discuss the matter."

An agreement last week between Indonesia and the
Washington-based International Monetary Fund set out a plan
to speed the transfer of Bank Rakyat's corporate loans to
other banks, part of the government's plan to focus on
providing new lending for small companies.  The government
plans to recapitalise the bank, weakened by Indonesia's
financial crisis of 1997 and 1998, by the end of October.
(Bloomberg, Business Times  12-Sept-2000)

PT SIWANI TRIMITRA: Bankruptcy suit filed against it
----------------------------------------------------
PT Bank Panin has filed a bankruptcy suit in Jakarta
Commercial Court against finance company PT Siwani Trimitra
alleging unpaid debts totaling US$1.86 million.

PTBank Panin's attorney M. Djamin said the debts, in the
form of a money market credit line facility, matured on
July 31, 1998 after being extended in June 1997. Siwani
Trimitra is further alleged to have failed to respond to
warning letters demanding settlement.

Previously named PT Mandiri Intifinance, Siwani also
allegedly owes payments on matured debts to other
creditors, including Uni Bank and the Indonesian Bank
Restructuring Agency.


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

JF JAPAN OTC FUND: Posts 1H net loss
------------------------------------
JF Japan OTC Fund Inc., a Jardine Fleming unit trust,
posted  a 12.18 billion yen net loss for the six-month
period ended June 30. By comparison, the company recorded a
net profit of 7.64 billion yen for the same period a year
ago.  Loss per share was 545 yen against earnings of 1,205
yen per share a year earlier. Revenue fell 63.6 percent to
14.7 million yen. No interim dividend will be distributed.


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

PERWAJA STEEL: ACT to investigate massive losses
------------------------------------------------
The Anti-Corruption Agency will summon former Perwaja Steel
Sdn Bhd chairman Tan Sri Eric Chia to assist investigations
over massive losses incurred by the now insolvent steel
company.

ACA director of investigations Abdul Razak Idris said a
team of officers would be despatched to meet with Chia as
soon as possible  following his recent statement on his
readiness to testify in court.  "We appreciate it if Eric
Chia could furnish us with information," said Abdul Razak.
"We will try to meet him to obtain his statement on the
latest development."

In his first public statement after maintaining silence on
the matter for the last four years since the issue broke,
Chia was quoted on Friday by the Singapore Straits Times as
saying he spent the last six months collecting documents
detailing transactions concerning Perwaja Steel from Chile,
Brazil, Italy and Japan.

Chia said he had been painted as a villain for four years
following a disclosure by former Finance Minister Datuk
Seri Anwar Ibrahim in parliament in 1996 that Perwaja Steel
was insolvent with huge losses.  Anwar's disclosure
followed audit firm Coopers and Lybrand's report on the
inability of the steel company to settle its debts.

Perwaja Steel is saddled with RM10 billion debts and
losses, involving current liabilities of RM926 million,
long term liabilities totalling RM6.013 billion and
collected losses amounting to RM2.985 billion. Chia was
also quoted by the Singapore Straits Times saying he
wrote to Anwar twice seeking an open inquiry into the
affair to be chaired by a retired judge, but received no
response.

The ACA began investigating Perwaja Steel in 1996 on the
Government's insructions. The agency has so far called over
50 people, including Chia, to assist in investigations.
Investigations reportedly hit a snag due to several
reasons, including the involvement of foreign institutions
and individuals.

Abdul Razak said the ACA had so far met with Chia twice. He
refused to comment on the outcome of the meetings but
expressed the hope that Chia would continue to extend his
co-operation to the agency.  Abdul Razak was quoted last
July as saying that the ACA was seeking assistance from
several foreign missions, including the Japanase and Swiss
embassies, regarding a RM76.4 million payment made by the
former management of Perwaja Steel Sdn Bhd to NKK
Corporation via Frilsham Enterprises Inc in Hong Kong - a
company later found to be a non-existent. (New Straits
Times  11-Sept-2000)

TECHNOLOGY RESOURCES: To work out eurobond debt restructure
-----------------------------------------------------------
Technology Resources Industries Bhd (TRI) hopes to work out
the debt restructuring of its US$375mil eurobond issue by
the first week of October.

According to its group executive vice-president Wan Aishah
Hamid, the company would have two years following the
finalisation of the debt restructuring agreement to repay
the eurobond-holders US$531mil -- to honor early redemption
-- at an interest rate of 3.75% above Libor per annum.
Aishah told a media briefing yesterday that a steering
committee comprising bondholders owning 75% of the debt had
agreed in principle to the bond restructuring.

She said TRI was also looking at various options like
floating wholly-owned subsidiary Celcom (M) Sdn Bhd or
obtaining fresh funding to repay the bonds in two years.
Aishah expects Celcom to post revenues of RM2bil for the
current financial year and to register earnings before
interest, tax and amortisation of RM1bil.

TRI had reported a turnover of RM1.7bil for the financial
year ended Dec 31, 1999, and RM977.7mil for the six months
to June 30, 2000.  At the same briefing, TRI chairman and
chief executive Tan Sri Tajudin Ramli said the company was
in a position to expand and that the difficulities of the
group were behind them.

"Over the past two to three months the growth in the number
of customers of our network has been phenomenal," he said.
"Our mobile phone growth is very, very strong."

TRI executive director Bistaman Ramli said the growth in
the subscriber base was expected to be higher than 28% this
year.  Celcom had 1.2mil cellphone subscribers as at end-
June, with postpaid subscribers accounting for 65% of the
total and prepaid the remaining 35%.

Bistaman expects the number of mobile phone users in
Malaysia to equal that of fixed line users in two years.
Touching on the revocation of the ATUR regulation 1986,
Bistaman said the company was going to be creative in
lowering access fees and rebalancing its call tariffs
He also said TRI could have a single billing system for all
of its customers by the end of the year.

According to Bistaman, GPRS (general packet radio services)
will be the future platform of TRI and the company is
planning to invest between RM500mil and RM600mil for the
rollout of GPRS across Malaysia. The initial investment in
GPRS will be in the Klang Valley, where about 40% of Celcom
customers reside. (Star Online  12-Sept-2000)


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

NATIONAL STEEL CORP.: To seek extension of debt moratorium
----------------------------------------------------------
The receivership committee of the National Steel
Corporation (NSC) said Tuesday it will ask for a 30-day
extension of a debt payment moratorium from the Securities
and Exchange Commission (SEC), starting on September 16.
NSC receivership committee chairman Monico Jacob said the
extension is needed to give NSC's owners time to evaluate
the steel company's rehabilitation plan.

PHIL. APPLIANCE CORP.: President relieved, audit ordered
--------------------------------------------------------
Philippine Appliance Corp. (Philacor) could be facing
another crisis as its subsidiary, Philacor Credit Corp.
(PCC) fell into disarray yesterday following the lock-up of
its head offices and the appointment of an officer-in-
charge.

In a memorandum issued by Philacor and PCC chairman Dante
Santos, PCC president Leonides Pinpin was relieved of his
post as company president and the operations of the company
were taken over by Santos' daughter, Marsha Santos who was
appointed officer-in-charge.

Santos' move was prompted by unspecified "administrative
cases" that led to the creation of an audit committee to
look into the books and finances of PCC, which Philacor had
been planning to sell as part of its efforts to raise funds
to settle part of its remaining P700-million debt.

In the memorandum, dated Sept. 8, 2000, the elder Santos
directed his daughter to "create an audit committee" with
the authority to "further investigate the administrative
cases" but he did not specify what these cases were or who
were directly involved.

"You are also hereby expressly directed to ensure at all
times that all corporate records and property of the
company are kept intact," Santos further ordered Marsha
Santos.

In a separate memorandum dated Sept. 8, 2000, Marsha Santos
ordered a lock-out of the PCC offices, instructing the
staff that "no employee shall be allowed entry into any PCC
office without prior approval of the OIC."

Company sources said PCC's Malolos Bulacan branch had been
padlocked while its head office in Legazpi Village, Makati
was thrown in confusion.  Sources expressed fears that the
recent imbroglio could make the company's creditors jittery
and compel them to call Philacor's P400-million bank loans.

Creditor banks, sources said, include Metrobank and Trust
Co. and Philippine National Bank.  The STAR contacted
Pinpin yesterday but was informed that he had gone on
"indefinite leave of absence" starting yesterday, leaving
no further instructions to his staff.

On the other hand, Marsha Santos said in a telephone
interview that there was nothing unusual with the actions
taken by her father, saying that it was "all part of the
effort to ensure that PCC's records were intact."

When told of the memorandum referring to unspecified
administrative cases, Santos categorically denied that
there was any ongoing investigation of any of PCC's
officials, including Pinpin.  "No, no, there are no
administrative cases being investigated," she said,
when asked about the elder Santos' memorandum.

She said her own memorandum was issued "because it was the
weekend and we just wanted to make sure that the records
will remain intact. He (Pinpin) has not been relieved, he
is still president and I am only here as representative of
the owners to oversee the audit and make sure that all
our records are intact," Santos explained.  "We have been
planning to sell PCC and now we are in negotiation with
several investors so we want to be prepared."

Santos explained that the audit was part of the usual
company audit with PCC's internal audit team working with
SGV & Co. as the external auditor. "Our fiscal year ends in
July 30 so this audit is just part of the regular process,"
she said.

The company has been wracked by in-fighting between the
Santos group which owns 32 percent of the company and the
group led by Philacor senior vice president for marketing
Carmelio Alvendia which also owns 32 percent. Due to
serious cash flow problems, Philacor was forced to shut
down its plant but Santos said it is scheduled to resume
manufacturing this month when the company's order for parts
and components begin arriving next month.

Santos said the Calamba plant would initially be operating
at half its annual rated capacity of 500,000 units its
operations normalize to work its way up to operating at
full capacity.  According to Santos, Philacor is eyeing
business opportunities in after-sale service which already
forms part of the company's existing business.  Although
there were plans for the company to sell its credit
financing business, she said after-sale service was still a
lucrative business. (Philippine Star 12-Sept-2000)

URBAN BANK: Economic sabotage defendants identified
---------------------------------------------------
Charges of economic sabotage were filed yesterday against
10 officers of Urban Bank Inc. and its affiliate Urbancorp
Investments Inc. who allegedly misappropriated P2.8 billion
to cover massive withdrawals in April.

Charged were Arsenio Bartolome III, Urban Bank and
Urbancorp chair; Teodoro C. Borlongan, president, chief
executive officer and director of Urban Bank and vice chair
of Urbancorp; Corazon M. Bejasa, director and corporate
secretary of Urban Bank and Urbancorp; Nida Santos, senior
vice president of Urban Bank and compliance officer of
Urbancorp; Milagros D. Santiago, bank senior manager;
Rowena E. Punzalan, bank senior manager; Mark D. Ching,
bank manager; Chulla M. Formanes, bank manager; Loida O.
Payonga, assistant vice president and trust officer,
Urbancorp trust department; and Amalia M. Ordas, manager,
accounting unit of Urbancorp.

Economic sabotage is a crime punishable by death in the
Philippines. Rafael Buenaventura, Bangko Sentral ng
Pilipinas governor, and Noberto Nazareno, Philippine
Deposit Insurance Corp. president, personally filed
four counts of estafa with the Department of Justice
against the officials of the bank and its investment arm.
Estafa involving more than P400,000 is considered economic
sabotage under Article 315 of the Revised Penal Code as
further qualified by Presidential Decree 1689.

Bank directors and chair emeritus, former President Fidel
Ramos, were not included in the complaint since they were
not involved in day-to-day operations.  "We accepted their
(directors') sworn statements that they were kept in the
dark," Buenaventura said.

Urban Bank was hit by massive withdrawals after it was
downgraded to a thrift bank because it could not meet the
central bank's new higher capital requirements. The bank,
which had 14,000 depositors and deposits of P9.1 billion of
which only P560,000 was insured, declared a bank holiday on
April 26.

Buenaventura said the complaint focused on transactions
that took place on April 19 when P2.8 billion worth of
"trash receivables" of Urbancorp were bought by Urban Bank.
Urbancorp used the proceeds to "service the continuing
massive withdrawals and pre-terminations of placements of
(its) clients and investors, among whom are the relatives
of Bartolome, sacrificing the interests of Urban Bank."

Buenaventura said Urban Bank officials knew of the problems
and even "concealed" the purchase of the substandard
receivables from the directors, major stockholders and
depositors and creditors of both the bank and the
investment house.

Nazareno said other cases could be filed next week.
He earlier said that the cases being prepared involved
violations of the Dosri rule, the single borrower's limit,
encashment of checks, transfer of marginal assets from the
investment house to the bank, and multiple sale of
National Food Authority papers.

Dosri refers to directors, officers, shareholders and
related interests. Central bank rules provide that no Dosri
could exceed more than 15 percent of the bank's unimpaired
capital.  Under the single borrower's limit, no single
client could borrow more than 25 percent of bank's
unimpaired capital.

On the sale of NFA papers, Nazareno said Urban Bank had
sold the papers to Land Bank but it turned around and sold
the same papers to private investors.  (Philippine Daily
Inquirer  12-Sept-2000)


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

ASIA FOOD & PROPERTIES: Posts first-half loss
---------------------------------------------
Asia Food & Properties Ltd., Singapore-based unit of one of
Indonesia's largest diversified companies the Sinar Mas
group, slid into a loss in the first half on lower-than-
expected prices of crude palm oil and related products.

The company, which has the largest oil palm plantations in
Indonesia, posted a loss of S$48.5 million ($27.9 million),
or 1.67 cents per share, compared with a profit of S$38.3
million, or 1.32 cents, a year earlier. Total sales dropped
1.6 percent to S$688 million, hurt by a 9.2 percent decline
to S$493.8 million in revenue from its agricultural
businesses.

Average crude palm oil prices in the international markets
fell to $340 a metric ton in the first half compared with
$510 a year earlier. Pretax profit from its agricultural
business in the first half slumped 37 percent to S$105
million, the company said.

Falling palm oil prices hurt Asia Food & Properties, as
about 71 percent of its first-half sales came from growing
oil palm and manufacturing products such as cooking oil.
The company also has interests in real estate, e-commerce
and the manufacture of instant noodles.

The Indonesian Association of Palm Oil Producers estimated
the country's crude palm oil output will rise to 6.5
million metric tons this year, from 5.9 million last year,
while exports will decline by 15 percent to 2.8 million
tons. Indonesia is the world's second largest producer of
palm oil after Malaysia.

Asia Food & Properties expects crude palm oil prices to
remain depressed this year. The company plans to produce
about 875,000 tons of crude palm oil in 2000, a 40 percent
increase from 1999.  To help producers, Indonesia plans to
cut its export duty on crude palm oil to 5 percent from 10
percent, Indonesia's Trade Minister Luhut Panjaitan said
yesterday.

Shares of Asia Food & Properties have fallen 58 percent
this year. The stock recently fell half a cent, or 1.6
percent, to 30 Singapore cents. (Bloomberg 12-Sept-2000)

PERMASTEELISA PACIFIC HLDGS: Posts 1H net loss
----------------------------------------------
Permasteelisa Pacific Holdings Ltd. recorded a net loss of
S$5.951 million for the first half of this year, compared
to net earning of S$7.345 million for the same period last
year.

The company posted a pretax loss of S$5.235 million for the
first six months of this year, compared with a S$9.157
pretax profit for the same period the previous year.
Revenue was S$81.199 million, down from last year's
S$110.13 million.  The loss per share this year was 2.98
cents, compared with net earnings of 3.67 cents per share
for the same period last year. No dividend was declared.
[US$1=S$1.7393]


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

ROYAL CERAMIC INDUS.: To file rehab plan Oct. 8
-----------------------------------------------
Royal Ceramic Industry Plc plans to file its business
rehabilitation plan with the Central Bankruptcy Court on
Oct. 8.

The plan will restructure debts totalling 1.7 billion baht,
and will replace a previous proposal rejected by the
Corporate Debt Restructuring Advisory Committee (CDRAC).
Chakorn Warantraporn, Royal Ceramic's managing director,
said that Thai Farmers Bank, the major creditor, would
jointly file the plan, which contains similar terms to the
rejected plan.

Mr Chakorn said the bank and Phatara Securities, one of its
subsidiaries, represented 73% of RCI's debtors and had
voted in favour of the new plan.  An official vote by all
creditors would be held this month, however.

Royal Ceramic expected to restructure the debt by year-end
if the court approved the plan. The debt included US$8
million in foreign currency. Mr Chakorn said the company
would be able to start paying interest early next year for
the first time in two years. Repayment of principal would
start in a few years.

Anek Wasanasompong, the company's assistant managing
director, said the new rehabilitation plan would include
rescheduling debt for more than 10 years; offering shares
in the firm in payment of debt; a capital increase; and
lower interest rates.

To pay interest alone, Mr Anek said, Royal Ceramic needed
to maintain its monthly revenue at 70-80 million baht. This
year, the revenue was expected to total 800 million baht,
up from 700 million baht last year. The figure is projected
to top one billion baht a year within two years.

Royal Ceramic has a daily production capacity of 10,000
square metres of ceramic tiles and 4,000 square metres of
artificial granite. The company is now operating at 80% of
its capacity, compared with 30-40% two years ago.
It expects to top 90% soon.

This year, the company intends to lift its annual
production capacity to two million square metres. About 80%
of the products are sold in Thailand and the rest exported.
The company had no plan to invest more in its Rayong plant,
Mr Anek said, but an investment plan would be implemented
after its debt was restructured. (Bangkok Post  12-Sept-
2000)

SRIVARA REAL ESTATE GROUP: Posts 1H net loss
--------------------------------------------
Srivara Real Estate Group reported a Bt 395 million net for
the first half of this year, down substantially from the
Bt 2 billion for the same period last year.


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

Troubled Company Reporter -- Asia Pacific is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
DC USA. Darryl Henning, Managing Editor, James Philip P.
Jover and Maria Vyrna Ni¤eza, Editors.

Copyright 2000.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale
or publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
prohibited without prior written permission of the
publishers.  Information contained herein is obtained from
sources believed to be reliable, but is not guaranteed.

The TCR -- Asia Pacific subscription rate is $575 for 6
months delivered via e-mail. Additional e-mail
subscriptions for members of the same firm for the term of
the initial subscription or balance thereof are $25 each.
For subscription information, contact Christopher Beard at
301/951-6400.

                      *** End of Transmission ***