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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, November 2, 2000, Vol. 3, No. 214

                          Headlines


* A U S T R A L I A *

GIO: Court clears way for $600M class action suit against
LEND LEASE: Stock falls on bleeding investment
WESTERN METALS: S'holders demands management resign


* C H I N A  &  H O N G  K O N G *

INDUS.& COMC'L BANK OF CHINA: Restructure eyed by year-end
ISTEELASIA.COM: Posts half-year loss
MAGICIAN INDUSTRIES: Posts second consecutive annual loss
PACIFIC CENTURY CYBERWORKS: Seekings $6-7 billion in loans


* K O R E A *

DAEWOO MOTOR: To cut W900B in costs, lay off 3,500
DONG-AH CONSTRUCTION: Gov't to uphold workout plan halt
DONG-AH CONSTRUCTION: Preparing for court receivership
HYUNDAI ENGIN.& CONSTR.: Facing gov't intervention
HYUNDAI ENGIN.& CONSTR.: Creditors give deadline
HYUNDAI GROUP: Mt.Kumgang project bleeding red
KOREA EXPRESS: Defaults on notes, to seek court protection


* M A L A Y S I A *

ANSON PERDANA BHD: Posts second consecutive annual loss
PUTRA: Defaults on interest payment


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

ASB GROUP: SEC extends claims-suspension order
ORIENT COMM.BANKING CORP.: 7 execs charged with fraud


* T H A I L A N D *

BANGKOK STEEL INDUS.: S'holders OK NTS,Siam Steel merger
SAHAVIRIYA STEEL: Records Q3 loss


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

GIO: Court clears way for $600M class action suit against
---------------------------------------------------------
The Federal Court has cleared the way for a landmark $600
million class action by former shareholders of the GIO to
proceed next year, knocking back an appeal by the new
owners, AMP.

The Full Court of the Federal Court in Sydney yesterday
rejected AMP's attempt to have the damages action struck
out, meaning the trial could start next year.  Up to 33,000
shareholders are suing the GIO, 10 former directors and
valuation experts Grant Samuel for their actions in the
botched 1998 takeover bid for GIO by AMP.

The shareholders have accused GIO and its directors of
misleading and deceptive conduct and negligence for
recommending against a $5.35 a share offer by AMP.
The bid was only partially successful, but AMP was able to
move to full ownership a year later at $2.75 a share after
huge reinsurance losses ravaged the GIO.

AMP, the directors and Grant Samuel were seeking an appeal
claiming there was not enough common ground between the
claims of each shareholder to warrant the case.  But
Justices Murray Wilcox, Ron Merkel and John Lehane
yesterday found there was sufficient common elements to
bind the shareholders together in a class action.

Bernard Murphy, a partner with class action solicitors
Maurice Blackburn Cashman said the trial was now likely to
get under way late next year.  "(The decision) means the
respondents will now be forced to address this case on the
facts, rather than pursuing technical legal arguments," Mr
Murphy said.

An AMP spokeswoman said the insurance and financial
services group was only one of 11 defendants in the case.
The case now returns to Justice Moore in the Federal Court
in on November 16. (The Advertiser  02-Nov-2000)

LEND LEASE: Stock falls on bleeding investment
----------------------------------------------
After three months of soul searching, property developer
Lend Lease and News Corporation Ltd have emerged with a new
business formula to try to resuscitate their bleeding $430
million Fox Studios investment.

But Lend Lease shares dropped 33.5 cents to $22.25 after it
announced that the "less profitable" initiatives will
"likely" translate into an extra $65 million after tax
provision.  This would take total provisions to cover
losses at the Sydney film studios, retail precinct and
entertainment venue to $146.5 million.

In July, Lend Lease made an $81.5 million provision to
cover losses for Fox Studio's first seven months of
trading.  And, based on Lend Lease calculations, that would
cut the company's carrying value of its investment from
$100 million as of June 30 to just $15 million.

Since opening 12 months ago, Fox Studios has had over 5
million public visits. Its Bent St retail precinct
continues to attract an average of 80,000 to 100,000
visitors per week.  But the key component, the
entertainment Backlot, is attracting far less than the
expected 1.2 million visitors.

The new plan seeks to get more traffic from the retail Bent
St zone into the Backlot by making the entertainment zone
free. Until now, charges for entry into the Backlot have
ranged from $39.95/$29.95 for adults/concessions to $24.95
for children.  Instead of paying to get into the Backlot,
customers will now be charged for a repeat-use ticket for
all attractions such as The Titanic. These charges will be
$24.95 for adults, $19.95 for concession and $14.95 for
children.

Fox Studios chief executive Kim Williams said the changes
provided "a firm base from which the public offering of Fox
Studios can be repositioned as an integrated, unique
leisure, shopping and entertainment destination rather than
as the two separate entities (Backlot and Bent St)."

In a statement to the Australian Stock Exchange, Lend Lease
said: "Following three months' further trading and an
intensive review of the original business model, it is now
clear that the original business plan will not generate the
level of visitors anticipated."

Market analysts responded accordingly, describing the news
as "very disappointing."  "It reverses a positive momentum
the company has been experiencing for the past few months,"
one analyst said.

Lend Lease chief executive for Asia Pacific, David Ross,
said the new plan should increase visitors to the site but
would be "less profitable" for the company.  Mr Ross said
Lend Lease "will continue to develop plans for other
improvements to Fox Studios over the next 12 months as the
business responded to the changes announced yesterday".
He indicated that future changes could include an office
development and some further tweaking of the retail
precinct.

Asked if Lend Lease would consider selling its stake, Mr
Ross said "it's not a consideration at this point".
A spokeperson for News Corp yesterday said "We are going to
assess the effects of the changes announced today before we
make any future decisions."

Fox Studios' Mr Williams said the site's professional
production studios - which have produced films such as The
Matrix and Mission Impossible 2 - were on track with the
original business plan and had forward bookings over the
next two years. (The Advertiser  02-Nov-2000)

WESTERN METALS: S'holders demands management resign
---------------------------------------------------
Angry shareholders of base metal and copper miner Western
Metals yesterday accused chairman Alan Castleman of
"glossing over the past" and demanded the resignation of
senior management.

The company, which owns the high-tech Mt Gordon copper mine
in Queensland and the Lennard Shelf base metal mines in
Western Australia, posted a $29.7 million loss in 1999-00,
the first in its history.  As shareholders filed in to
yesterday's annual general meeting in Perth, shares in the
former market darling were trading at just 18c, 1c off
their historic low of 17c and a fraction of their 1997 high
of $1.34.

In a heated hour of questioning they demanded an "overpaid"
board accept responsibility for, as one shareholder put it,
"share prices going into the gutter. You're still not
getting the point that the board has been negligent in
leaving the same team at the top," said the shareholder,
who said he would sell his last remaining shares in Western
Metals as soon as he left the building. "Changes have not
occurred at the top to reflect the stuff-ups that have
occurred in this company."

The shareholder said Western Metals' hostile $300 million
takeover of Aberfoyle two years ago - which delivered it Mt
Gordon - was "buying a big barrel full of crap."  Mt Gordon
alone contributed $23.5 million of last year's loss in
writedowns related to commissioning troubles associated
with its revolutionary processing technology.

Acknowledging the "unhappiness" of some shareholders, Mr
Castleman said most institutional shareholders were content
with the company's strategy and progress.  "It is a great
pity that it has taken us as long as it has to get Mt
Gordon performing," he said. "But it is today very
profitable and, fair to say, the jewel in the company's
crown."

Mr Castleman said both the Lennard Shelf and Mt Gordon
reported the best quarter ever in the September period.
But like a raft of its peers, Western Metals' currency
hedging program has taken its toll, as have the company's
120 million convertible preference shares, which remain an
issue for investors.  At its prevailing share price, the
company will have to issue four new shares for each
preference share on issue sometime between June and
November 2001. A buyback has been flagged but is still to
happen.

Managing director Rod Webster, whose $400,000 salary in
1999-00 was also criticised, promised a a rapid return to
profitability.  "Our strategy is pretty simple: we're going
to return to profit," he said, noting a strong performance
by Mt Gordon had already put the company back in the black
during the September quarter. (The Advertiser  02-Nov-2000)


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

INDUS.& COMC'L BANK OF CHINA: Restructure eyed by year-end
----------------------------------------------------------
Industrial and Commercial Bank of China, one of the
nation's four main state commercial banks, has finalized a
timetable to restructure its Hong Kong operations. The
report appeared in the Hong Kong Economic Times and cited
ICBC chief Li Lihui. The company's financial adviser,
Salomon Smith Barney, expects to complete its report within
the next few weeks. The restructuring then would be
completed by the end of the year, market conditions
allowing. The restructure would include an infusion of
HK$10 billion in ICBC assets into ICBC Asia, formerly known
as Union Bank of Hong Kong, and a share placement.

ISTEELASIA.COM: Posts half-year loss
------------------------------------
Steel trading Internet portal iSteelAsia.com recorded an
interim net loss of $47.97M for the six months ended
September 30. By comparison, the company posted a net
profit of $4.95M for the same period a year ago. Turnover,
meanwhile, mainly generated from trading commissions,
increased 32.36 percent to $105.46M.

MAGICIAN INDUSTRIES: Posts second consecutive annual loss
---------------------------------------------------------
Household-product maker Magician Industries (Holdings) Ltd.
recorded a net loss of HK$118.54 million for the year ended
March 31. That was down from the HK$257.52 million net loss
it posted a year earlier. Loss per share was 27.29 HK
cents, likewise down from the 59.29 HK cents from the prior
year. Revenue fell 18.4 percent to HK$582.27 million. No
final dividend was declared.

PACIFIC CENTURY CYBERWORKS: Seekings $6-7 billion in loans
----------------------------------------------------------
Hong Kong-based telecommunications and internet firm
Pacific Century CyberWorks is seeking between $US6 billion
($11.5 billion) and $US7 billion in loans, it was reported
yesterday.

PCCW is seeking the money to refinance its existing debt
and to fund its joint venture with Australia's Telstra, the
Hong Kong Economic Journal cited a bank source as saying.
PCCW, headed by Richard Li, son of tycoon Li Ka-shing, is
expected to meet bank representatives for loan talks this
week and will likely hammer out the loan details by mid-
November, the paper said.

On October 23, PCCW announced it would raise up to $US1.8
billion through a convertible bond issue and a rights issue
to reduce its debt to around $US4 billion.  The
announcement was made after PCCW finalised a revised
alliance for an Asian internet infrastructure and mobile
communications venture with Telstra on October 13. (The
Advertiser  02-Nov-2000)


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

DAEWOO MOTOR: To cut W900B in costs, lay off 3,500
--------------------------------------------------
Daewoo Motor, unveiling last-minute self-rescue measures to
stay afloat, said yesterday that it will improve its
balance sheet by 900 billion won ($800 million) next year
through layoffs, cost-cutting and plant closures.

Under the latest self-rehabilitation steps, the ailing
automaker will lay off about 3,500 workers, or 20 percent
from its workforce of 18,000, to save 100 billion won in
annual labor costs, its new chairman Lee Jong-dae said.
Despite damage to the company's long-term growth potential,
Daewoo will also drastically scale down its spending on
research and development, advertising and marketing
activities, cutting another 500 billion won, Lee said in a
news conference.

Among the overseas operations, Daewoo-FSO, a passenger-car
plant in Poland, will reduce its annual output capacity
from 220,000 units to 126,000. Lee said that pay cuts,
asset sales and other drastic self-rescue measures will
also be imposed on the Polish car plant, which is
temporarily closed because of slow sales.

In addition, passenger and commercial vehicle plants in
Romania, Ukraine, Uzbekistan and India will be subject to
production cuts, depending on their respective market
situations. Daewoo will also close or sell off five to six
of its 33 overseas sales concerns.

"Overseas plants and sales companies will first be asked to
be run independently. Otherwise, unprofitable operations
will be closed or liquidated," said chairman Lee. "If the
restructuring plans proceed smoothly, Daewoo may be able to
turn a profit of about 100 billion won a year, starting in
2002."

Denying reports that Volkswagen is interested in buying
Daewoo Motor Poland, a commercial vehicle maker, he said
that the fate of all overseas operations will be finalized
after talks with General Motors are completed. He refused
to reveal the latest developments in negotiations with GM,
citing a confidentiality agreement.

GM president and CEO Richard Wagoner told reporters in
Tokyo on the same day that GM and Daewoo creditors have yet
to settle a lot of disputes over the acquisition terms,
predicting that the talks will continue into next year.

Other self-rescue measures by Daewoo include selling a 24.5
percent stake in auto-parts maker Delphi Korea and real
estate for 100 billion won, an overall 2-percent rise in
car prices, a 3 percentage point cut in sales commissions
to Daewoo Motor Sale and the suspension of new model
introductions.

Daewoo will also phase out unpopular and unprofitable
models, which is expected to reduce its annual sales 15
percent to 730,000 units in 2001. Earlier last week, Daewoo
announced plans to cut 30 percent of its 135 high-level
management positions. The management's plan to dismiss
3,500 plant workers, meanwhile, is likely to meet stubborn
resistance from the labor union, delaying overall restruc-
turing efforts, analysts forecast.

Chairman Lee said that negotiations are already under way
and the union is expected to accept the 3,500-job cuts. But
the labor union, citing a five-year employment guarantee
contract signed last August, said that the mass layoffs
will be rejected, unless generous compensation is offered.

Industry observers say that Daewoo Motor is increasingly
sinking into a "comatose" status, due to a serious shortage
of operating funds. Overdue employee wages exceed 100
billion won ($89.3 million), with creditors refusing to
provide additional operating capital due to the labor
disputes.

Without extra loan infusions, it's forecast that Daewoo's
entire domestic operations will come to a halt this month,
putting Daewoo and its creditors at a disadvantage in the
sales negotiations with GM, they warned. (Korea Herald 01-
Nov-2000)

DONG-AH CONSTRUCTION: Gov't to uphold workout plan halt
-------------------------------------------------------
The Korean government has pledged to support the decision
of Dong-Ah Construction Industrial Co's creditor banks to
suspend the floundering company's workout program.

An official of the Financial Supervisory Service (FSS) said
Monday that because the creditor banks made the decision on
their own responsibility and without any outsider's say,
the government treats it with respect. The suspension of
the workout program means for Dong-Ah to have no additional
financial support from Seoul Bank and other creditors, and
the measures to be taken for the ailing builder is now up
to the creditor banks.

Dong-Ah is now expected to file with a court of law an
application for receivership, as the government refrains
from making any decision on the ailing company's fate.
The FSS will not have any say in creditor banks' decision
on the survivability of their debtor companies, the
official said. (Asia Pulse  31-Oct-2000)

DONG-AH CONSTRUCTION: Preparing for court receivership
------------------------------------------------------
After having its debt workout program suspended by
creditors, Dong Ah Construction Industrial Co. said
yesterday that it is making a bid for court receivership.

The company called an extraordinary meeting of shareholders
in the afternoon at its headquarters in Seoul, during which
the proposal for court protection was approved. Chairman
Choi Dong-sup later announced through an in-house
communication network that the company is making
preparations for court receivership.

Dong Ah Construction, whose total sales amounted to 2.3
trillion won ($2 billion) last year, is about 3.7 trillion
won in debt.  The company was placed under a government-led
workout program in 1998, the first such program in the
nation, when its financial situation deteriorated during
the foreign exchange crisis.

However, despite creditors' efforts to help the company's
revival, including debt rescheduling on two occasions
during the past two years, the company failed to normalize
its management mainly due to a stagnant construction
market and the trouble it faced in winning orders in light
of its damaged corporate credibility.

Dong Ah Construction is expected to file the application
for court receivership soon, but if the court refuses the
application, Dong-ah will undergo procedures for bankruptcy
or liquidation. Seoul Bank and 15 other creditors informed
Dong Ah Construction on Monday that they would not offer
additional funds or reschedule interest payments worth
340.9 billion won as the company had requested.

Yesterday, the steering committee of creditors sent a
letter outlining the decision to take the troubled builder
out of the workout program to 42 creditors for final
approval. The result will be made known in a couple of
days. With Monday's decision by creditors, Dong Ah has
become the first of the biggest candidates for liquidation
including Hyundai Engineering & Construction and Ssangyong
Cement Industrial, which may be forced out of business.

Analysts from foreign securities firms welcomed the
creditors' decision as proof that Korea is willing to
reform, as foreign investors had threatened to leave the
market unless at least one of the three candidates was
liquidated. However, the decision cast doubt on the future
of Dong Ah's numerous domestic subcontractors and massive
projects underway in and out of the country.

The company is involved with more than 100 construction
projects in Korea and 17 projects in 10 countries including
Libya. The number of its domestic subcontractors reaches
about 500. If it goes under court receivership, it is
feared that foreign workers at the Libya waterway project
will not be paid on time.

Insiders say Libya may retaliate by denying waterway
projects to Dong Ah in the future, bringing an additional
$2.43 billion in losses.  Apartment construction projects
are also a problem as 12,000 newly built homes would not be
available as scheduled, and Dong Ah subcontractors may go
bankrupt. Dong Ah is also deeply involved in road projects
and nuclear power plant construction in Uljin, North
Kyongsang Province.

Experts worry that other companies lack the skills to take
over Dong Ah's work.

Meanwhile, the Korea Express Co., which provided security
for about 800 billion won of Dong Ah's debts, also decided
yesterday to apply for court receivership. Officials
explained that they made the decision to protect the
company from creditors' claims to the debt obligation.
(Korea Herald  01-Nov-2000)

HYUNDAI ENGIN.& CONSTR.: Facing gov't intervention
--------------------------------------------------
The South Korean government and creditor banks have decided
that if Hyundai Engineering & Construction (HEC) fails to
surmount its current liquidity problems on its own, they
will cancel out the managerial rights of the current
largest shareholder through a debt-to-equity conversion.

------------------------------------------------
Creditors have set a Friday deadline for South Korea's
largest civil engineering firm, Hyundai Engineering and
Construction Co., to present drastic reforms or face court
receivership, bank officials said Wednesday.

Creditors will meet Friday to decide the future of the
Hyundai Group's ailing construction unit, which was plunged
into crisis after failing to pay debts. Hyundai Engineering
and Construction (HEC) narrowly avoided bankruptcy on
Tuesday.

"The deadline can be extended but we are pressing HEC hard
to come up with a viable reform program by Friday," a
creditor bank official told AFP, speaking on condition of
anonymity.

Creditors want Hyundai founder Chung Ju-Yung and his son,
Chung Mong-Hun, to use their private wealth to help rescue
the civil engineering firm. The two have so far defied
government pressure to restructure the group's ailing
units.  A list of South Korean firms with irrecoverable
debts will be released Friday, and financial officials have
promised to push ahead with the liquidation of non-viable
firms.

The list includes up to 50 firms, South Korea's national
Yonhap news agency said, adding 60 percent of them could be
forced out of business. Financial Supervisory Commission
head Lee Keun-Young has warned the government could use
public funds to nationalize or place HEC under court
receivership if the company fails.

"HEC's problems cannot be solved without special steps by
the Chung family," the bank official said, highlighting a
sluggish stock market and Hyundai's uncollected overseas
debts, including one trillion won (885 million dollars) in
Iraq. The credit crisis has hampered efforts by Hyundai
units to raise fresh funds through equity markets, he said.

"We are in a dilemma as court receivership may aggravate
the situation. HEC has thousands of subcontractors at home
and is engaged in massive construction projects overseas."

HEC defaulted on 22.4 billion won due Monday. It paid the
money a day later. But with other major debts due before
the end of the year, the government warned it would
consider a public bailout or receivership.  Analysts worry
about three trillion won (2.65 billion dollars) due by the
end of December.

HEC is one of the world's biggest civil engineering firms
with major projects in Asia and the Middle East. One in
Singapore is worth 1.2 billion dollars and another in Iran
940 million dollars. The company is also involved in an
international project to build safe nuclear reactors in
North Korea under a 1994 accord aimed at neutralizing the
communist state's nuclear weapons program.

In August, creditors rolled over Hyundai Engineering's debt
after it promised to cut borrowings to 4.1 trillion won by
December from 5.2 trillion won at the end of last year.
Having failed to ride out the credit crisis, a quarter of
HEC's 255 top executives resigned last week.

The restructuring of Hyundai Group, which had debt of 22.22
trillion won at the end of June, has been the centerpiece
of South Korea's corporate reform this year. Doubts about
the group have grown since a billion dollar deal for
American International Group (AIG) to buy into troubled
Hyundai financial units hit a snag.

AIG chairman Maurice Greenberg had been expected in Seoul
on Monday. But the trip was postponed, raising fears the
group's lingering liquidity crisis would worsen.  (Agence
France Presse  01-Nov-2000)

HYUNDAI GROUP: Mt.Kumgang project bleeding red
----------------------------------------------
Hyundai has lost US$263.7 million as of the end of June in
its North Korean Mount Kumgang tour project. The project
was inaugurated in November 1998, according to documents
submitted by the Ministry of Unification to a National
Assembly inspection Tuesday.

The company spent some US$375.57 million on the cruises
while garnering just US$ 169.2 million in income, and has
also invested US$130 million on facilities.  Hyundai also
has given 40,000 TV sets to the North valued at US$5.93
million and in addition tourists have handed over US$11,310
in fines to North Korea for 427 "violations" of rules
imposed on the tour.  (Digital Chosun 31-Oct-2000)

KOREA EXPRESS: Defaults on notes, to seek court protection
----------------------------------------------------------
Former parent firm Dong-Ah Construction having applyied for
court-protection Tuesday, Korea Express failed to honor a
some W18 billion in company notes and cheques that matured
that day. Instead, the logistics firm declared insolvency
and intends to apply for court-protection Nov. 1, according
to Korea Express officials. Korea Express has been dragged
down by W701 billion in payment guarantees made on behalf
of Dong-Ah when it was still a subsidiary of the construc-
tion firm.


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

ANSON PERDANA BHD: Posts second consecutive annual loss
-------------------------------------------------------
Anson Perdana Bhd recorded an after-tax loss of RM225
million for the fiscal year ended Aug 31, 2000. By
comparison, the company posted a RM60.9 million after-tax
loss the previous financial year. Turnover dropped to
RM91.89 million in the latest fiscal year, down from
RM158.7 million the previous year. Loss per share stood at
RM2.25 compared to 62.1 sen previously.

PUTRA: Defaults on interest payment
-----------------------------------
Renong Bhd's wholly-owned subsidiary Projek Usahasama
Transit Ringan Automatik Sdn Bhd (Putra) defaulted on its
interest-servicing obligation of about RM227.5 million as
of October 30 for its RM2 billion commercial financing
facilities.

The financing facilities consist of two tranches, a RM1
billion conventional tranche and a RM1 billion Islamic
tranche, and which are secured among other thins by a
charge over and assignment of all project accounts and
assets.  In November 1999, Renong announced that Putra has
defaulted on its interest servicing obligations amounting
to RM44.59 million in respect of the RM2 billion commercial
financing facilities.

In a statement, Renong said the nonpayment of interest/
profit constitutes an event of default under both tranches.
It said the default would also amount to an event of
default under two other loan facilities granted to Putra
for the aggregrate principal amount sum of RM1.5 billion
and RM771 million, respectively.

The default entitles the respective financiers under the
loan, RM1.5 billion facilities and RM771 million facilities
to declare that an event of default has occurred, whereupon
Putra will be required to repay the facilities in full and
the respective security would be enforceable. However,
Renong said the financiers have not declared the non-
payment as an event of default and has not demanded
payment.

Meanwhile, Renong said Putra is currently in negotiation
with the financiers for approval under the loan for
indulgence to extend a moratorium period on the interest/
profit payments up to December 30 2000 and to waive the
penalty margin of 1 per cent per year for the period from
September 30 1999 to December 30 2000 on all interest/
profit payments outstanding.

Renong added that Putra is working closely with the
Corporate Debt Restructuring Committee to indentify the
most viable option for a restructuring scheme which is
being done in conjunction with the restructuring of the
public transport system as a whole. (Business Times  01-
Nov-2000)


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

ASB GROUP: SEC extends claims-suspension order
----------------------------------------------
The Securities and Exchange Commission has extended for
another 60 days or until Dec. 30 its order suspending all
claims lodged against the ASB Group of Companies of real
estate developer Luke Roxas to enable them to file their
replies to the creditors' comments on the proposed
rehabilitation plan.

In its order, the SEC said it found the request for
extension of the debt moratorium to be reasonable
considering that the rehabilitation plan drafted by the ASB
Group appears to be feasible and has the support of its
interim receiver.  The extension was also to allow the SEC
to decide whether to approve or not the ASB Group's
proposed recovery program, which called for the dacion en
pago of its properties to pay off debts.

Without an extension, creditors can start initiating
foreclosure proceedings against the ailing group's assets.
The suspension order expires on Oct. 31.  The SEC has also
ordered ASB's interim receiver to take custody and control
of the ailing firms' assets to provide ample protection to
investors and ensure the conservation of the group's
assets.

The ASB Group filed a loan suspension payment petition with
the SEC in July owing to severe cash flow problems
resulting from the sudden pre-termination of investments of
its clients.  Creditor-banks of the ASB Group, however,
questioned the feasibility of the corporations' proposed
rehabilitation plan, saying it lacks the financial
commitment to service their obligations and fails to ensure
the long-term viability of the distressed companies.

These banks include the Philippine National Bank, United
Coconut Planters Bank, Far East Bank & Trust Co., and the
Development Bank of Singapore.  In a separate filing with
the SEC, UCPB said the plan is not comprehensive as it
failed to address material and relevant matters pertaining
to the financial statements of petitioners.

It said the plan includes adjustments to the financial
statements which are not acceptable under generally
accepted accounting principles and are "not realistic but
are manipulation intended to conceal the financial
condition of petitioners."  UCPB said the ASB Group should
in fact be liquidated since it is already insolvent. It
claims that the ASB Group has a negative net asset of P3
billion.

DBS, for its part, said the plan failed to provide a
material financial commitment for the payment of secured
creditors. Under the plan, the payment of secured creditors
is totally dependent on the success of the asset pool which
is highly questionable.

"There is no reasonable certainty that the finished
projects that are to be contributed to the pool will be
completed or that the new projects to be constructed will
materialize. The plan does not provide alternatives in the
event that the asset pool does not generate the projected
revenue or otherwise fails," DBS said.

"It is doubtful whether the terms of the plan would be
sufficient to bring about the rehabilitation of the ASB
Group because it does not provide for the institution of
changes in the ASB Group's management, organization,
policies, operations or finances for the purpose of
rescuing or reviving the petitioning corporations," it
added.

PNB said the plan is unrealistic and too prejudicial to the
mortgage banks. It said the proposal of waiver of interest
and charges is too onerous and burdensome considering that
waiver of interest and penalties will only commence upon
the actual turnover of the titles to be dacioned in favor
of the bank.

Individual creditors of the ASB Group, on the other hand,
said they would not oppose the rehabilitation plan for the
ailing group unless it would result in the complete and
total satisfaction of all obligations.  In a motion filed
with the SEC, the individual-creditors said the
rehabilitation plan should make provisions for a repayment
scheme, particularizing those for interest as distinguished
from payments on the principal and allocate a specific
portion of the amounts realized from ASB's projects to
service its debts to creditors.

The plan, according to individual-creditors, lacks a
material financial commitment for the repayment of debts
and liabilities to the creditor-depositors. Individual-
creditors also said the properties that will go into the
asset pool component of the plan should be valuated by an
independent and professional appraiser to ensure realistic
values.

They, however, objected to ASB's proposal to offset the
outstanding receivables from Roxas, owner of the ASB Group,
saying it violates generally accepted accounting
principles, which dictates that revenues from asset
disposition be recognized only when realized.

Individual creditors said the P5.23 billion in receivables
by ASB from Roxas should remain as a material asset account
in the books and must be pursued for collection from him in
order to strengthen the financial condition of ASB and
prevent its collapse against the pile of debts owed to
secured creditors. (Manila Times  02-Nov-2000)

ORIENT COMM.BANKING CORP.: 7 execs charged with fraud
-----------------------------------------------------
Seven top officials of collapsed Orient Commercial Banking
Corp. (Orient Bank), including its president, Jose Go, have
been charged with 24 counts of estafa before a Manila Court
for allegedly falsifying checks, which enabled the
businessman to get P180 million from the bank and transfer
this into his own account.

In 24 separate Department of Justice case information
sheets all dated Oct. 20, State Prosecutor Lagrimas Agaran
recommended the criminal prosecution of Go, along with his
external vice-president-treasurer Richard Hsu, chief
operating officer-senior vice president Aida dela Rosa,
assistant vice-president-cash department head Elizabeth
Benitez, corporate account department senior manager
Veronica Zamora, and accounts assistants of the corporate
accounts department Felicitas Nicomedes and Ma. Cristina
Lorelie Fuelles-Clemino.

The case was forwarded to the Manila regional trial court
(RTC) last Oct. 26 and was raffled to the Manila RTC branch
24 last Monday. The charges were based on a series of loan
grants manager's check issuance and encashments and finally
deposits of its proceeds to Go's savings account within a
period of about one year. The bank collapsed not long
after.

It was later discovered in the ensuing investigation of the
Bangko Sentral ng Pilipinas that funds of the collapsed
business were used by Go in his other business
transactions. Go is the owner of Ever Gotesco chain of
shopping malls, among others.

According to Agaran's estafa recommendation, the bank
officers acted with "unfaithfulness or abuse of confidence
in taking advantage of their respective positions" by
making it appear that certain companies obtained a loan
from the bank.

The companies then allegedly got checks and used them
"without the supporting loan documents and endorsements
thereof" until it was channeled to Go's bank account.
Their bail was pegged at P40,000 each for each count.
The loans did not go higher than P9,985,000 in the case of
nine companies but no lower than P3,994,000 as in the case
of two supposed loan applicant companies.

Among the companies that were made to appear to have
obtained loans were AMA Computer College, Golden Pizza Inc.
(owner of the Shakey's Pizza chain), garment companies
Bossini and Burlington, Cityville Realty and other shoe and
construction companies.  (The Philippine Star  02-Nov-2000)


===============
T H A I L A N D
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BANGKOK STEEL INDUS.: S'holders OK NTS,Siam Steel merger
--------------------------------------------------------
Shareholders of Bangkok Steel Industries (BSI) yesterday
approved a plan for the firm to merge with NTS Steel Group
(NTS) and Siam Steel Industries, a unit of Siam Cement.

Prasert Thangtrongsak, managing director of BSI, said he
expected the merger to be completed by the beginning of
2001, following the completion of the firm's debt
restructuring plan later this month.  He said the other two
companies participating in the merger have completed their
own debt restructuring plans and now only await the
conclusion of restructuring at BSI.

Earlier, Bangkok Bank (BBL) and Siam Commercial Bank (SCB)
petitioned the bankruptcy court to rehabilitate the firm
after it defaulted on a five billion baht loan. The first
BSI bankruptcy hearing is to take place on November 13.

Prasert explained that under the planned merger, the steel
rod operations of the three firms will be combined, forming
a new steel company which will seek listing on the Stock
Exchange of Thailand (SET). BSI and NTS will then delist
from the SET. Equipment and other assets will be valued for
use as the capital base of the firm, while new working
capital totalling one billion baht will be raised.

Following the merger, said Prasert, the combined operations
will produce about 1.5 million tonnes a year, compared to a
current combined capacity of around eight million tonnes
per year. He said currently, market demand is approximately
1.5 million tonnes a year, meaning some operations of the
merged firms will have to be scaled down.

BSI and NTS together are expected to hold more than 50
percent of the new firm after a debt to equity swap has
been completed.  Prastert said earnings for this year are
expected to continue to slide due to a depressed steel rod
price, averaging about 1,500 to 2,000 baht a tonne, while
operating expenses continue to rise. Trade in BSI and NTS
shares on the SET has been suspended. (Business Day 01-Nov-
2000)

SAHAVIRIYA STEEL: Records Q3 loss
---------------------------------
Sahaviriya Steel Industries (SSI) recorded a net loss of 38
million baht in the third quarter of 2000.

Nonetheless, the company overall posted a net profit of 364
million baht for the first nine months of the year. Adisak
Lowjun, President of SSI said that in the third quarter,
the company earned 3,814 million baht by selling 332,638
tonnes of hot roll coils. He added this has resulted in a
net loss of 38 million baht.

"Major causes of the problems are high world steel prices,
lower demand in local market and higher production costs,"
he said.

Adisak said that due to uncertainty in the global steel
market during the last quarter, the price of hot rolled
coil dropped from $294 per tonne in the second quarter to
$275 per tonne in the third quarter.  Adisak added that in
the first nine months of 2000, SSI earned 11,983 million
baht of revenue from selling 1,058,297 tonnes of hot rolled
coils. This resulted in a gross profit of 1.278 billion
baht and the net profit of 364 million baht.

The president of SSI admitted that the current market
situation has forced the company to revise its marketing
strategies and boost productivity.  He said that the
company plans to keep the volume of export at about 28
percent of the total 1.6 million tonnes of current output.

Adisak said the company's productivity is running at about
60 percent of the total capacity, adding that presently,
imported cheaper products from other countries constitutes
about 55 percent of the total local demand. (Business Day
01-Nov-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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