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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, September 21, 2000, Vol. 3, No. 184

                                       Headlines


* A U S T R A L I A *

BHP: Mine strike to cost $1M
GENERAL GOLD: Creditors meet in Darwin
ONE.TEL: Share price continues to sink southward
TELSTRA CORP: To fire 4,000 in call-centers closures


* C H I N A  &  H O N G  K O N G *

CHINA APOLLO HLDGS.: Posts 1H net loss
GAY GIANO INT'L: Stock price sinks on rumor
GOLD WINNY ELECTRONICS LTD: Facing winding up petition
GUANGDONG BLDG. INDUSTRIES: Posts 1H net loss
i100: Posts 1H loss
PACIFIC CENTURY REGIONAL DEVEL.: To appeal damages award
PACIFIC PLYWOOD HLDGS.: Posts 1H net loss
U-CYBER TECHNOLOGY HLDGS.: Posts 1H net loss
UNION RIFE (HK) LTD: Facing winding up petition
WAI MAN CONSTR.& ENGIN.LTD: Facing winding up petition


* I N D O N E S I A *

ASIA PULP AND PAPER: Makes US$1.4B debt offer
BANK NEGARA INDONESIA: Posts first-half loss
PT INT'L NICKEL INDONESIA: To pay $80M in debts in Sept.


* J A P A N *

BRIDGESTONE CORP.: Mulls closure of US plant
CRAYFISH CO.: Facing suit over info disclosure
KUMAGAI GUMI: S&P downgrades rating, gives gloomy forecast
MUTSU OGAWARA KAIHATSUN: Files for liquidation


* K O R E A *

SAMHO CO.LTD: KAMCO sells it receivables
SEOULBANK: Seeks $1.2B more aid from Gov't


* M A L A Y S I A *

CEMENT INDUSTRIES OF MALAYSIA: Records 1H pretax loss
TENAGA NASIONAL: Soaring fuel prices weaken it further


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

PHILIPPINE NAT.BANK: Rehabilitation will proceed


* S I N G A P O R E *

LEONG HIN: Pots 1H loss


* T H A I L A N D *

INDUS.FINANCE CORP. OF THAILAND: Posts 1H net loss
THAI CANE PAPER CO.: Reports on rehab to SET
THAI PETROCHEM.INDUS.: In conflict with planner again
THAI PETROCHEM.INDUST.: Creditors to decide fate in Oct.


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

BHP: Mine strike to cost $1M
----------------------------
Australian mining giant BHP reports it will lose around $1
million in lost production from a 48-hour strike by
management at a central Queensland mine.

About 35 workers, including engineers, surveyors and
accountants at BHP's Crinum mine, walked off the job for
the first time yesterday  BHP spokesman Ian Dymock says it
caught the company by surprise.

"In fact, we've had very good relations with the unions and
that's why it comes as some disappointment," he said.
"We have been working positively with them over the years
and this sort of strike is costly for everyone, for company
and employees." (ABC News Online  20-Sept-2000)

GENERAL GOLD: Creditors meet in Darwin
--------------------------------------
Creditors of General Gold, operator of the failed Mount
Todd gold mine near Katherine, are scheduled to meet in
Darwin today.

Company administrators have recommended the creditors
accept an offer from Yimuyn Manjerr Investments, a joint
venture partner in the mine. Yimuyn Manjerr, formerly
Multiplex Resources, has proposed creditors enter into a
deed of company arrangement.

The company would provide almost $2.8 million and sell
General Gold's assets to give small creditors 30 cents in
the dollar and larger creditors at least 13 cents.  The
alternative is liquidation.

The administrators say more money could be realised that
way but it would take lengthy litigation.  They say much
about the matter is unsatisfactory but it is clear
creditors will not get immediate benefits if they pursue
liquidation.  The administrators are of the opinion the
deed of arrangement is the best alternative. (ABC News
Online  20-Sept-2000)

ONE.TEL: Share price continues to sink southward
------------------------------------------------
One.Tel shares fell almost 5 percent yesterday, leaving
major shareholders such as Kerry Packer and Rupert Murdoch
out of the money on their investment in the junior telco.

One.Tel fell 4c to close at 80c, below the 81c average
price Publishing & Broadcasting paid for its 17.4 per cent
shareholding in the company. News Corp has been under water
on its investment since last Thursday, having paid an
average of 91c a share for its 24 per cent stake. Almost
2.5 million One.Tel shares were traded, with Ord Minnett
the biggest seller on the day.

Analysts attributed One.Tel's decline it ended off the low
of 78c to the overall reweighting of telco stocks. "I don't
think the decline is any more remarkable than that of any
other shares in the broader telco sector," Burdett
Buckeridge & Young telecom analyst Mr Mark McDonnell said.
"A large part of the sell-off of One.Tel is associated with
the general retreat of share prices."

While the All Ordinaries index shed 40 points, the
telecommunications index fell another 1.2 per cent
yesterday amid continuing concerns about the large amounts
of capital being spent by telecom companies the world over
on 3G spectrum.  Telstra fell 1c to $5.99, C&W Optus 14c to
$4.02, Hutchison 4c to $2.66 and Davnet 5c to $1.08.

Based on yesterday's close, One.Tel is now worth $2.12
billion. It was revealed last week that $7.5 million had
been paid to both joint managing directors, Mr Bradley
Keeling and Mr Jodee Rich, in salary and bonuses last
financial year. The $6.9 million bonus each received was
linked to performance measures, including increases in the
company's sharemarket capitalisation.

Having propelled One.Tel's share price to a high of $2.48
last December, Mr Keeling and Mr Rich are now staring at an
18-month low of 80c for the stock.  One.Tel shed 20 per
cent in two days last week, savaged by investors after
revelations of the payout coincided with the telco's
announcement of a $291 million loss for the year to June.

One.Tel has forecast $1.1 billion in revenue for the 2000-
01 year, but expects to incur a loss of $195 million
because of continuing investment in its GSM mobile network.
Brokers said demand for One.Tel shares could pick up ahead
of its inclusion in the All Ordinaries index in early
October with a 50 per cent weighting. (Sydney Morning
Herald  20-Sept-2000)

TELSTRA CORP: To fire 4,000 in call-centers closures
----------------------------------------------------
Telstra Corp., Australia's largest phone company, said it
plans to fire about 40 percent of its 10,600 call-center
workers to cut costs.

The Melbourne-based company said it will reduce the number
of its call centers to 35 from 280 during the next three
years and shift most of them to rural parts of the country.
The changes will cost A$412 million ($224 million),
spokeswoman Jane Sullivan said.

Telstra announced in March plans to cut costs by A$650
million in the next two years, including the firing of
10,000 workers. It has reduced its workforce by 34 percent
during the last four years. The company, 50.1 percent owned
by the Australian government, is struggling to increase
profits as intense competition forces it to cut retail
phone charges.

"Telstra is starting to deliver on the cost savings they
promised earlier," said Don Hamson, who helps manage A$14
billion for Westpac Investment Management Ltd. "The more
evidence one sees of them becoming an efficient, lean
organization, the better it is for their stock."

Telstra rose 1.8 percent to A$6.10, its first gain in four
days. The stock has fallen more than 12 percent since Aug.
30 when the company reported slower-than-expected second-
half profit growth.  In a report today, the Australian
Financial Review, citing a confidential company document,
said Telstra was planning to move its call centers from
major cities to rural areas.

Of the A$412 million in costs related to the changes, more
than half would be spent on building new, larger call
centers, the paper said.  The changes "should mean salary
and accommodation costs would be lower, and the workforce
more stable. You wonder why Telstra needed so many call
centers in the first place," said Bruce Smith, who helps
manage A$2.5 billion in Australian equities at Zurich
Financial Services. (Bloomberg  20-Sept-2000)


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

CHINA APOLLO HLDGS.: Posts 1H net loss
--------------------------------------
China Apollo Holdings Ltd., a tonic and health drink
product manufacturer, recorded a HK$64.7 million net loss
for the six-month period ended June 30. By comparison, the
company posted a HK$13.2 million net loss for the same
period the year earlier. Loss per share was 7.93 HK cents,
compared with 1.62 HK cents a year before. Meanwhile,
revenue rose 10.6 percent to HK$89.6 million. No interim
dividend was proposed.

GAY GIANO INT'L: Stock price sinks on rumor
-------------------------------------------
Gay Giano International's share price plunged 64.85 per
cent yesterday on rumours of a heavy sell-off of the stock
by a cash-strapped minority shareholder, according to
analysts.

The counter, which had risen sharply in the past five
months, finished at HK$1.52.  Rumours were rife on the
market that a minority shareholder's pledged shares had
been sold by as many as four brokerages, analysts said.
According to the rumours, the market's sharp correction in
the past week had exacerbated the shareholder's cash-flow
problems.

"It's definitely related to margin calls of pledged
shares," a broker said.

He said market talk had it the shareholder had
unsuccessfully attempted to sell shares last Friday at a
discount.  The shares are scheduled to go ex-dividend
today.  Trading volume was unusually hefty at HK$96.36
million.  Gay Giano International traded as high as HK$4.65
earlier this month, 3.87 times its initial public offering
(IPO) price of HK$1.20.

"The volume was at an unreasonable level for the counter,"
said Tanrich Securities director of sales Steve Cheng Ka-
wah.

Gay Giano operates clothing stores for men and women under
the brands Gay Giano, Cour Carre and Due G in Hong Kong and
the mainland.  The company has kept a low profile since it
was listed on the main board.  Its IPO in April of 50
million new and existing shares was under-subscribed by 8.2
per cent.  The un-subscribed shares were taken up by
various underwriters.

But sources said it was most likely that these shares would
have been disposed of amid the counter's surging prices.
Gay Giano finance director Carmen Ng said the company had
been notified by its two largest shareholders that they had
not disposed of any of their shares yesterday.  The two
largest shareholders control 75 per cent of the company's
shares between them.

According to the firm's listing prospectus, they are
prohibited from selling their shares for six months from
their listing debut.  The company, which reported a 51.6
per cent year-on-year net profit rise for the year to March
31, yesterday said its directors knew of no reason for the
decline in the company's share price. (South China Morning
Post  20-Sept-2000)

GOLD WINNY ELECTRONICS LTD: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 6 on the petition of
Wong Mei Yin, Yanto for the winding up of Gold Winny
Electronics Limited. A notice of legal appearance must be
filed on or before December 5.

GUANGDONG BLDG. INDUSTRIES: Posts 1H net loss
---------------------------------------------
Curtain wall contractor Guangdong Building Industries Ltd.
recorded a HK$56.3 million net loss for the six-month
period ended June 30. By comparison, the company posted a
HK$148.5 million net loss for the same period the year
prior. Loss per share was 67 HK cents, down from HK$1.76
the year before for the first half. Revenue sank 54.8
percent to HK$42.8 million. No interim dividend was
proposed.

i100: Posts 1H loss
-------------------
Venture capitalist i100 suffered a loss of HK$23.68 million
for the six-month period ended June 30. By comparison, the
company posted a HK$3.63 million profit for the same period
a year ago. Loss per share was 7.81 HK cents, compared with
an earnings per share of 2.27 HK cents last year. Turnover
dived 90 percent to HK$116.11 million, while gross profit
dropped 22.8 percent to HK$24.28 million. No interim
dividend was declared.

PACIFIC CENTURY REGIONAL DEVEL.: To appeal damages award
--------------------------------------------------------
Pacific Century Regional Developments, owner of 34 percent
of Pacific Century CyberWorks, reports it will appeal a
Singapore court judgment in favor of a Canadian company for
payment of some HK$268 million in damages.

The case against Pacific Century involves a dispute over
ownership transfer of a joint venture, Reuters reported.
Canadian Imperial Investment sued the Richard Li-controlled
company for over S$60 million. The High Court ruled that
Pacific Century Regional Developments failed to properly
inform the partner of the offer by CyberWorks, then known
as Tricom Holdings, to buy PCRD's 75 percent stake in
property company Quinliven Pte Ltd. Canadian Imperial owned
the other 25 percent of the venture.

PACIFIC PLYWOOD HLDGS.: Posts 1H net loss
-----------------------------------------
Wood products manufacturer Pacific Plywood Holdings Ltd.
recorded a US$2.4 million net loss for the six-month period
ended June 30. By comparison, the company posted a US$2.6
million net profit for the same period a year earlier. Loss
per share was 4 US cents, compared with earnings per share
of 6 HK cents for the first-half the year before.  Revenue
fell 10.3 percent to US$61.98 million. No interim
dividend was proposed.

U-CYBER TECHNOLOGY HLDGS.: Posts 1H net loss
--------------------------------------------
U-Cyber Technology Holdings Ltd. recorded a HK$23.4 million
net loss for the six-month period ended June 30. By
comparison, the company posted a HK$11.6 million net profit
for the same period the year before. Loss per share was 7.7
HK cents, compared with 4.9 HK cents earnings per share the
year before.  Revenue dropped 54.3 percent to HK$27.2
million. No interim dividend was proposed.

UNION RIFE (HK) 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 Ho
Chi Ming for the winding up of Union Rife Hong Kong
Limited. A notice of legal appearance must be filed on or
before November 7.

WAI MAN CONSTR.& ENGIN.LTD: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on November 15 on the petition of
Chan Kei for the winding up of Wai Man Construction &
Engineering Limited. A notice of legal appearance must be
filed on or before November 14.


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

ASIA PULP AND PAPER: Makes US$1.4B debt offer
---------------------------------------------
Asia Pulp and Paper has made a debt-exchange offer to
holders of US$1.45 billion of its bonds in one of the
biggest such deals yet made by an Indonesia-linked company.

Although Singapore-based and New York-listed, much of the
firm's interests are focused in Indonesia. One of Asia's
most indebted companies, Asia Pullp said it was offering to
exchange the notes for a combination of cash, new 15 per
cent guaranteed five-year notes and warrants for its
American depositary shares or more of the new notes.

"[The primary purpose is] to reduce the total amount of its
debt at the holding company level and to extend the dates
on which Asia Pulp's debt must be repaid or is redeemable
at the options of the holders," it said.

Asia Pulp also owns the leading Indonesian pulp and paper
firms Indah Kiat Pulp and Paper and Tjiwi Kimia.
The deal comes as Indonesia is under pressure to sort out
its huge corporate debt burden, which exploded in size in
the wake of the country's economic crisis almost three
years ago.

Indonesia's private-sector foreign debt is estimated at
about US$70 billion.  Asia Pulp is planning to exchange as
much as US$3 billion of its debts for a combination of cash
and new bonds, The Asian Wall Street Journal reported.
The company filed documents on the debt-exchange offer as
its share price hit a record low, raising the ratio of its
debt to about 10 times above market value. (South China
Morning Post, Bloomberg 20-Sept-2000)

BANK NEGARA INDONESIA: Posts first-half loss
--------------------------------------------
Bank Negara Indonesia (BNI) recorded a loss of Rp1.9
trillion in the first half of this year, although the bank
began posting a monthly profit averaging Rp150 billion in
July and August. BNI  has set a profit target of Rp1.7
trillion (US$ 210 million) for 2001, although it is
expected to post a loss for this year.

PT INT'L NICKEL INDONESIA: To pay $80M in debts in Sept.
--------------------------------------------------------
PT International Nickel Indonesia, known better as PT Inco,
plans to pay $80 million of its total $500.05 million in
debts this September.

Inco's president Rumengan Musu noted that his company would
pay the debt in 13 installments, with the company having
paid $40 million as its first installment last March. The
September payment would be the second payment, an
installment of principal plus interest.

Inco's liabilities totaled $600.72m as of the end of June,
an 11.38% decrease from $677.87 million a year earlier.
Total equity stood at $695.28 million, up 10.59% from
$628.70 million a year earlier.

According to Musu, Inco has $421.15m debts indebted to
Export Development Corporation of Japan's Export-Import
Bank. Additionally, it also borrowed $78.8 million from its
principal, Inco Ltd., of Canada.

At present, Inco's nickel mining project in Indonesia
supplies around 6 percent of the world demand for nickel.
Combining its principal and subsidiary companies, Inco
overally controls about 20% of the world's nickel output.


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

BRIDGESTONE CORP.: Mulls closure of US plant
--------------------------------------------
While defending its Firestone-brand tires yesterday,
Bridgestone Corp. hinted the top tier of its US management
may be reshuffled and a US plant temporarily closed in
dealing with its affiliate's tire-recall crisis.

The escalating cost of recalling 6.5 million tires, second
largest tire recall in US history, is projected to reach
US$400 million to US$500 million (HK$3.12-$3.9 billion) in
the fiscal year ended next March -- some US$50 million-
US$150 million more than originally projected.
Additionally, Bridgestone may find it more difficult to
raise funds after Moody's Investors Service last week
issued a credit rating downgrade.

Bridgestone did announce last week that it had reached a
deal with several Japanese banks for a new US$1 billion
credit line, however. Analysts expect the new funding
source to help the Japanese tire maker offset to a degree
an expected loss of sales at the US-based Firestone.

Firestone's plant in Decatur, Illinois, which made many of
the tires subject to the recall and a high percentage of
those involved in tread-separation accidents which
precipitated the recall, could be shut down temporarily for
improvements, Bridgestone president Yoichiro Kaizaki told
the Asian Wall Street Journal in an interview. Full closure
of the plant could not be ruled out, he was quoted as
saying, depending on future sales.

CRAYFISH CO.: Facing suit over info disclosure
----------------------------------------------
A group of U.S. investors has filed a class action suit
against Japanese Internet service provider Crayfish Co.
over losses they allege were incurred as a result of the
firm's failure to disclose sufficient financial
information.

Filed in a federal district court in New York, the lawsuit
alleges Crayfish failed to notify investors of the
susceptibility of its profitability to the fate of its
parent company, Hikari Tsushin Inc., Japan's largest
subscription agent for mobile-phone service providers.
Hikari Tsushin suffered serious business problems earlier
this year, its shares coming under continuous selling
pressure. The retail store chain had to close 1,050 of its
1,800 retail outlets in the first six months of this year.

A number of U.S. law firms representing the investors said
Crayfish, in listing its shares on the Nasdaq market in
March, brought investors' attentions to its capital
alliance with Hikari Tsushin, which made Crayfish into a
subsidiary in March 1999. The company allegedly failed to
alert investors to the connection between the company's own
profitability and the business performance of Hikari
Tsushin, in violation of the U.S. Securities Exchange Act.

In April this year, Hikari Tsushin projected a 11.6 billion
yen operating loss for the fiscal year ending Aug. 31, a
reversal from an earlier projected profit of 8 billion yen.

KUMAGAI GUMI: S&P downgrades rating, gives gloomy forecast
----------------------------------------------------------
Financially distressed Japanese contractor Kumagai Gumi
faces an uphill struggle even if it succeeds in winning a
huge $4.2-billion debt forgiveness deal, Standard and Poor
(S&P)'s risk-rating agency said yesterday.

Meanwhile, the New York-based S&P lowered its rating on the
building company to CC from CCC, based on public
information. If creditors agree to forgive 450 billion yen
($4.2 billion) in debt as Kumagai has requested, its credit
grade will slip to "selected default," according to S&P.

Kumagai Gumi has promised to cut 30 percent of its
workforce -- 2,000 employees - in the next three years in
return for the debt waiver. S&P expressed doubts as to
whether Kumagai Gumi could accomplish its employee-
reduction targets.

"Given the company's very weak financial flexibility and
high debt leverage, continued support from its major banks
will be indispensable to the success of its ongoing
restructuring efforts," S&P concluded in a statement.

MUTSU OGAWARA KAIHATSUN: Files for liquidation
----------------------------------------------
Teikoku Databank reports that Mutsu Ogawara Kaihatsu has
filed with the Tokyo District Court for liquidation with
liabilities totaling 185.2 bln yen. The company is partly
owned by the government.


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

SAMHO CO.LTD: KAMCO sells it receivables
----------------------------------------
Korea Asset Management Corp reports the sale of 26.3
billion won in notes receivable of eight local companies
for 10.8 billion won. The companies include Samho Co Ltd,
and are either undergoing receivership or in the process of
closing.  KAMCO said the receivables were sold to local
institutional and retail investors via open bidding.

SEOULBANK: Seeks $1.2B more aid from Gov't
------------------------------------------
SeoulBank, one of South Korea's weakest banks, said it is
seeking 1.3 trillion won ($1.2 billion) of aid from the
government to revive the debt-laden lender before selling
shares to overseas investors next year.

The bank, bailed out by the government during the financial
crisis of 1997-1998, also plans to sell as much as $500
million of shares next year, Kang Young Jin, a SeoulBank
spokesman said. The request for aid was earlier reported in
the Maeil Business newspaper which said the bank wanted the
money within a month.

"We explained to the government, the earlier the better to
speed up our recovery and to successfully complete the
sale," Kang said. "The 1.3 trillion won will be sufficient
to normalize the bank's operations."

The government has spent about 6.1 trillion won supporting
SeoulBank after the bank nearly collapsed when the slump in
the won in 1997 sparked economic recession and widespread
defaults among the bank's customers.  The government in
April appointed Deutsche Bank to manage the lender after a
two-year search to find a buyer failed. Deutsche Bank,
Europe's largest, is helping revamp Seoul Bank's operations
and management.

"There is a possibility that Deutsche Bank may take over
SeoulBank," Kang said. (Bloomberg  20-Sept-2000)


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

CEMENT INDUSTRIES OF MALAYSIA: Records 1H pretax loss
-----------------------------------------------------
Cement Industries of Malaysia Bhd recorded a pre-tax loss
of RM2.86 million for the six months ended June 30. That
was down from a loss of RM9.03 million for the same period
a year ago.  Group turnover was higher at RM138.15mil, up
38% from RM99.93mil the previous 1H in 1999. Loss per share
for the financial half stood at 3.5 sen.

For the quarter to June 30, the group managed to turn in a
pre-tax profit of RM5 million on a turnover of RM81.6
million. By comparison, the company posted a pre-tax loss
of RM4.23 million with a turnover of RM56.48 million, for
the same quarter a year ago.

TENAGA NASIONAL: Soaring fuel prices weaken it further
------------------------------------------------------
Malaysian power company Tenaga Nasional, already reeling
from a controversial leadership change, faces another
damaging blow from soaring fuel costs and difficulties in
raising tariffs to combat that problem.

Tenaga stock has lost a record 10.2 per cent this month,
trading yesterday at RM11.40, up 30 cents on the day but
still down from this year's peak of RM14.70. Analysts said
yesterday earnings growth for the nation's largest listed
company seemed limited if the government denied Tenaga a
crucial tariff rate hike to offset soaring fuel costs.

"The road ahead for Tenaga appears tough given rising costs
and difficulties in raising tariffs," said a power sector
analyst with OCBC Securities.

Gas and oil form 82 per cent of Tenaga's total generation
mix. The remaining 18 per cent is made up of hydro and
coal. OCBC last week downgraded the state-controlled Tenaga
to "market perform" from a "buy."  It attributed the rating
cut to "uncertainties arising from its leadership problems,
escalating fuel costs and the difficulty of passing on cost
increases to consumers."

The brokerage has forecast a net profit of RM1.55 billion
(S$711 million) and earnings per share (EPS) of 49.4 sen
for Tenaga in its financial year ended Aug 31, 2000. For
2001, it has forecast a net profit of RM1.88 billion and
EPS of 60.7 sen.  Tenaga recorded a net profit of RM773.5
million and EPS of 24.9 sen in the year to Aug 31, 1999,
but foreign exchange losses of RM613.5 million put a
significant dent in its earnings.

Analysts said Tenaga urgently needed government approval to
raise tariffs to offset surging oil prices. Tenaga buys its
gas from state-owned Petronas at a fixed price of RM6.40
per million British thermal units, well below market
prices, but those prices will be reviewed by the end of the
year and are almost certain to increase.

To make matters worse, oil prices hit a fresh post Gulf war
high above US$37 per barrel in Monday trade.  Tenaga has
said that its management will submit a proposal to the
board outlining a need to hike tariffs, but has given no
indication whether the government will allow it. Kim Eng
Securities said in a report on Monday that Tenaga's request
for a tariff hike would be approved once its purchase price
for gas was revised upwards.

"And the quantum of the rise would be sufficient for Tenaga
to cover the rise in gas cost and make a reasonable
profit," it added.

Kim Eng has forecast Tenaga's EPS at 66 sen for financial
year ended Aug 31, 2000, and and 77 sen for 2001, assuming
there is no change in power and gas prices.  Only two weeks
ago, investors hammered Tenaga shares to an eight-month low
of RM10.80 following the departure of market-friendly
executive chairman Ahmad Tajuddin Ali.

Investors and analysts have questioned the ability of his
successor, politician Jamaludin Jarjis, to lead the company
despite repeated assurances from him that the company
remained in good hands.  National Economic Action Council
working committee member Zainal Aznam yesterday urged
investors not to be alarmed about the surge in oil prices.

"We shouldn't be too alarmist as the price could dip below
current levels although we can't be sure by how much," he
added.

Stock markets in the region dived for the second straight
day after US stocks fell overnight on concerns that sky-
rocketing oil prices would eat into US corporate earnings
and hasten inflationary pressures. (Business Times 20-Sept-
2000)


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

PHILIPPINE NAT.BANK: Rehabilitation will proceed
-------------------==---------------------------
Bangko Sentral (Central Bank) Gov. Rafael B. Buenaventura,
for his part, said the PNB rehabilitation will have to push
through with or without Mr. Tan.  "Somebody has to shoulder
the PhP10 billion. It might be the government," Mr.
Buenaventura said.

Sources said Mr. Tan could not meet the September 18
because his credit standing was affected by a PhP25.3-
billion ($551.39-million) tax evasion case filed against
his flagship Fortune Tobacco Corp.  Mr. Pardo declined to
comment on the issue, but said "maybe from where he
sits, he does not want the government to push through with
the case."

Sources also said creditor banks have asked the group of
Mr. Tan for a payment 3% higher than the usual rate for
financing letters of credit.  Mimicking the government's
stand to wait for Mr. Tan to remit his payment, investors
are also on a wait-and-see mode before subscribing to the
bank's stock rights offering.

Analysts polled by BusinessWorld yesterday said investors
were "holding off" until after the tycoon has made his next
move.  PNB plans to raise PhP10.18 billion ($21.864
million) from the stock rights offering which runs until
Sept. 29. It is offering 171.85 million new common shares
at PhP60 apiece.

The stock rights offering is vital to PNB's
recapitalization. It expects to have a PhP32.069-billion
($698.915-million) capital by year-end, more than twice its
capital level as of June 26 of PhP13.398 billion ($291.997
million).  Existing shareholders as of Sept. 15 may buy
five shares for every six shares they own. Shareholders
also have an option to buy one warrant share for every one
subscribed rights offer share within five years from the
transaction.

PNB Capital and Investment Corp. will be the issue manager
while Allied Banking Corp.'s trust and investment division
will be the stock transfer agent.  PNB earlier said bulk of
the proceeds, or PhP8.8 billion ($191.788 million), will be
used to pay high-cost obligationsm, while the remaining
PhP1.38 billion ($30.076 million) will be invested in
fixed-income securities.

This year, the bank expects its losses to taper off to
PhP561 million ($12.26 million) from a staggering PhP9.874-
billion ($215.195-million) net loss in 1999. In the first
half of the year, PNB's losses ran up to PhP1.446 billion
($31.514 million). The bank is still grappling with a high
level of nonperforming loans, pegged at 35% of total loans
as of June. (Business World 20-Sept-2000)


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

LEONG HIN: Pots 1H loss
-----------------------
Construction group Leong Hin's posted a net loss of
$444,000 for the six-month period ended June 30, down from
$1.4 million for the same period the previous year.
Turnover also improved, rising 88 percent to $11.9 million.

The company attributed the higher turnover to an increase
in piling revenue and new sales from geotechnic business
and rental of cranes in Hongkong.  Loss per share was 0.32
cent. No interim dividend was declared.


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

INDUS.FINANCE CORP. OF THAILAND: Posts 1H net loss
--------------------------------------------------
Industrial Finance Corp. of Thailand recorded a first-half
net loss of Bt17 million following a consolidation of its
subsidiaries' earnings.

Its accumulated loss for the period increased by Bt803
million. The subsidiaries, including IFCT Capital
Management, CO-ADCO and Asset Development, had combined
assets of Bt2.12 billion, total liabilities of Bt2.92
billion and a combined net profit of Bt17 million for the
6-month period to the end of June 30, 2000

THAI CANE PAPER CO.: Reports on rehab to SET
--------------------------------------------
Thai Cane Paper Public Company Limited has reported to the
Stock Exchange of Thailand that in the Central Bankruptcy
Court, with Thai Cane Paper Public Company Limited as
Petitioner and Debtor, P.S. Asia Group Co., Ltd. and all
objectors have completed hearings of witnesses on September
19. A hearing for the Court's order in respect to the
petition is set on October 3, 2000 at 9.00a.m.

THAI PETROCHEM.INDUS.: In conflict with planner again
-----------------------------------------------------
The Australian rehabilitation firm overseeing the
rehabilitation of Thai Petrochemical Industry (TPI) is once
again at odds with the Thai executives running the company,
this time over a debt restructuring plan pushed by TPI
chief executive officer Prachai Leopairatana.

Anthony Norman, the managing director of Ferrier Hodgson
(Thailand), said Tuesday that Prachai's alternative plan,
which includes a call for rescheduling debt, is unlikely to
succeed.

"Prachai has been acting improperly," Norman said in an
interview. His plan "has no creditor support, and won't
happen."

TPI has been trying to renegotiate its $3.5 billion debt to
foreign and domestic creditors for nearly two years. But
the two sides were unable to reach a final agreement until
last March, when Thailand's Bankruptcy Court ordered
Ferrier Hodgson to draft a rehabilitation plan on behalf of
TPI's creditors.

In their most recent tiff, Prachai has rejected a proposal
by Ferrier Hodgson to convert up to 75 percent of TPI's
unpaid interest to equity, at 5.5 baht per share.

"Converting debt into equity at 5.5 percent a share is
tantamount to reducing capital and forcing us to
recapitalize sooner or later," he told local media in
Bangkok.

Prachai has also put forward several demands deemed
unacceptable to the creditors, including rescheduling
payments on unpaid interest until January 2001 and
postponing sales of any assets until 2003.  In addition,
Prachai has attacked the foreign involvement in the
planning process.

"In the first five months this year, TPI paid Effective
Planners around 500 million baht ($12.5 million)," he said
this week. "The company will have to pay an additional 3
billion baht if Effective Planners is appointed as the
company's plan administrator. It's a pain for a local
debtor to have a foreign company as its debt restructuring
planner."

Ferrier Hodgson's final rehabilitation plan will be made
public by the Bankruptcy Court's official receiver on
Wednesday. Norman will outline the plan at that time.
The Receiver is required to ensure that the document
submitted complies with Thai law. He must also ensure that
the document "is not oppressive" to any class of creditor,
as opposed to shareholders.

Norman would not disclose details of the creditors' plan
prior to the official announcement. "I am disciplining
myself do everything in the proper order," he said.

He said he has been in regular dialogue with Prachai and is
convinced the Thai CEO can make "no legal moves" before the
creditor plan is announced. (Asian Asset Direct 20-Sept-
2000)

THAI PETROCHEM.INDUST.: Creditors to decide fate in Oct.
--------------------------------------------------------
THE fate of Thai Petrochemical Industry, the country's
largest corporate debtor, will be decided by its creditors
in the first week of October, a press conference was told
yesterday.

TPI's business rehabilitation plan will be submitted to the
official receivers on September 25 and forwarded to TPI's
creditors for a vote, said Anthony Norman of Effective
Planners, the company organising TPI's business
rehabilitation.  "I'm confident we will have a significant
majority of them supporting the plan," Norman told
reporters.

Under TPI's long-awaited US$3.7 billion (Bt156.76 billion)
debt restructuring plan, the price of new shares to be
issued for debt-to-equity conversion has been set at Bt5.45
each, allowing the creditors a 75 per cent stake in the
company.  After the debt-to-share swap, ownership in the
company by the Leopairatana family, TPI's founding
shareholder, will be reduced from a 30 to 40 per cent stake
to a 13 per cent stake.

The family, however, has the right to buy back shares
offered to the creditors within five years.  Effective
Planners is in charge of TPI's $3.7 billion business
rehabilitation plan, the final version of which includes a
much larger equity conversion of all interest than
previously planned.

The final equity conversion is $756 million while the
initial conversion was only $230 million. Earlier,
creditors had agreed to swap TPI shares for Bt15-19 each.
The new figure represents interest accrued from 1998 to
2000.

The remaining $3 billion will be raised from the company's
operating cashflow, the sale of non-core assets, and
proceeds from refinancing expected in 2004.  TPI Polene
(TPIPL) may be one of the units targeted for sale as part
of the company's non-core-asset sales to service debts,
Norman said.

"TPI may have to sell its entire 49 per cent stake in TPIPL
because it is not TPI's main business," he said at the
press conference.

TPIPL is the country's No 4 cement maker with an annual
output of nine million tonnes.  This year's earnings for
the country's largest corporate debtor are expected to
reach about $250 million (Bt10.59 billion) before interest,
tax and depreciation assets.

Norman dismissed the possibility of a larger equity
conversion. He added, however, that the recent hike in oil
prices was one of the reasons the planners had to change
some of their original assumptions and finally end up with
a larger debt-to-equity swap. He said the final plan "works
even at currently high oil prices."

Norman told Dow Jones Newswires that "oil prices are a
mixed blessing for Thai Petrochemical. They help improve
the company's margins but on the negative side there is a
need for more money for working capital."

TPI's chief executive officer Prachai Leophairatana, who
also attended the press conference, accepted the plan but
said he wants creditors to slow down the non-core asset
sale due to unfavourable market conditions.  "I think the
plan is acceptable and completion would benefit all related
parties, because the 75 per cent to be controlled by
creditors will be locked up throughout the plan ending
December 2004. This would not adversely affect the stock
market," he said.  (The Nation  21-Sept-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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