---

     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 9, 2000, Vol. 3, No. 219

                                      Headlines


* A U S T R A L I A *

GREYHOUND PIONEER: To succumb to McCaffertys Holdings
JOHN FAIRFAX HOLDINGS: Looking for safety net
TELSTRA: Denies report of further 1,700 job cut


* C H I N A  &  H O N G  K O N G *

ACER LABORATORIES: Forecast negative, execs resigns
STAREASTNET.COM: Posts first-half loss
TOM.COM: Posts first-half loss


* I N D O N E S I A *

PT TEXMACO JAYA: Ometraco seeks bankruptcy ruling against


* J A P A N *

INTER-LEASE CORP.: Rehab abandoned, liquidation ahead
SHISEIDO CO: Posts first loss in 55 years


* K O R E A *

CHO HUNG BANK: Daewoo default exposes it to harm
DAEWON KANGUP: Daewoo default exposes it to harm
DAEWOO MOTOR: Fails to reach layoff accord with unions
DAEWOO MOTOR: Creditors declare insolvent
DONGYANG MECHATRONICS: Daewoo default exposes it to harm
HANVIT BANK: Daewo default exposes it to harm
HYUNDAI ENGIN. & CONSTR.: Battling against bankruptcy
HYUNDAI ENGIN.& CONSTR.: Equity sales `won't cover debt'
KORAM BANK: Daewoo default exposes it to harm
KOREA EXCHANGE BANK: Daewoo default exposes it to harm
KOREA FIRST BANK: Daewoo default exposes it to harm
SAMLIP PRECISION: Daewoo default exposes it to harm


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

MACKIE INDUSTRIES: Loss maker to be shut down
NATIONAL STEEL CORP.: Ispat Int'l wants exclusive bid


* S I N G A P O R E *

PAKARA TECHNOLOGY: Sells factory for large loss


* T H A I L A N D *

ASSET MANAGEMENT CORP: Records Bt1.3B loss for 1999
ELECTRICITY GENERATING AUTH.: Cabinet slashes re-fi amount
ITALIAN-THAI DEVEL.: Creditors to file rehab petition
NAWARAT PATANAKARN: Reports capital reduction to SET
RAIMON LAND: Court orders rehabilitation, appoints planner
RAYONG REFINERY CO.: Posts Bt 2.46B annual loss
THAI ENGINE MANUFACTURING: Creditors approve rehab plan
THAI PETROCHEM.INDUSTRY: Posts Bt6.7B loss
UNITED BROADCASTING CORP: Records 9-mo. loss
WORLDPAGE: TOT to take over


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

GREYHOUND PIONEER: To succumb to McCaffertys Holdings
-----------------------------------------------------
After an eight-month fight for independence, the final
chapter in the battle for the Greyhound Pioneer coach
business is drawing to a close. The takeover of the group
by Toowoomba-based McCaffertys Holdings will see Greyhound
Pioneer disappear from the stock exchange boards after a
turbulent eight years.

The family-run McCaffertys will now be the dominant force
in the increasingly marginalised coach industry worth about
$150 million.  Greyhound was given a brief reprieve
yesterday with McCaffertys extending the offer period for
shares in Greyhound until later this month. But with
McCaffertys already holding about 75 per cent, the real
battle has been fought and lost.

The final act in the Greyhound play opened in October last
year with the eruption of hostilities between Greyhound
chief Stephen Jones and 48 per cent shareholder Retirewise
Capital.  Retirewise and Greyhound's principal lender
Altramira are linked through principal Duncan Saville,
whose companies were owed about $9 million in loans and
convertible notes by Greyhound with the loans going into
default in the middle of last year.

Greyhound shares last traded at 25c, giving the company a
market capitalisation of about $3.5 million.  At June 30,
1999, the company had negative shareholder funds at $9.5
million from accumulated losses.  It was not the first time
Greyhound has been shrouded in controversy with the company
never too far away from the headlines since floating in
1992.

In its first year it posted a loss of $2.9 million, falling
well short of prospectus forecasts of a $13.1 million
profit.  It never recovered from the disastrous result,
spending the next eight years dipping in and out of profit
but never regaining investor confidence.

Merger discussions between Greyhound and McCaffertys broke
down in March, with McCaffertys subsequently lodging a
takeover bid.  In rejecting the bid Greyhound elected
instead to sell its coach business to Nowra-based Premier
Motor Services for $15.3 million and attempt to trade out
of its financial woes. But McCaffertys lodged a $9.6
million cash and scrip bid in June. (The Advertiser  08-
Nov-2000)

JOHN FAIRFAX HOLDINGS: Looking for safety net
---------------------------------------------
John Fairfax has reached out to some of its biggest rivals
about merging or partially selling its F2 internet business
in a bid to stem its $40 million losses.

Fairfax managing director Fred Hilmer and F2 chief
executive Nigel Dews are believed to have met the senior
executives of some of its biggest online competitors,
including Kerry Packer's Publishing & Broadcasting and
Kerry Stokes' Seven Network, to discuss industry
rationalisation.

It is understood that these meetings have taken place over
the past month but are yet to yield any deal.  Information
about the meetings has been revealed to The Australian just
days after Fairfax chairman Brian Powers ruled out selling
any of Fairfax's businesses.

Mr Dews confirmed talks had taken place with a variety of
companies, including broadcasters, about merging or
restructuring Fairfax's online interests.  F2 is said to be
keen to partially sell or merge its online auction arm,
Sold.com.au, with one or more of its rivals, which include
Ebay.com.au, owned by Kerry Packer's Ecorp, and
Gofish.com.au, the auction site owned by News Limited
(publisher of The Australian).

It is understood Fairfax is also looking for partners for
its online directories business, Big Colour Pages/City-
search.  Industry sources said F2 valued these two
businesses respectively at $100 million and $500 million.
In Sold.com's case, such a valuation is 100 times more than
the $1 million in transaction revenues generated for F2 by
the online auction site last year.

Big Colour Pages/Citysearch turns over less than $40
million a year from its print and online directories
business.  Mr Dews declined to comment yesterday on what
values F2 had placed on Sold and Big Colour/Citysearch but
noted these valuations were not dissimilar to those held by
some media analysts.

Analysts' valuations for all of F2 range from $170 million
to $400 million.  Mr Dews stressed that F2 was committed to
building its online presence in four key areas -
classifieds, auctions, online directories and financial
services.

"Industry restructuring is the key to being profitable," Mr
Dews said.  "We're talking to anybody who has similar
interests to us in terms of rationalising the industry and
turning leadership positions into a manageable business.
"And that means broadcasters and anybody who is a leader
like us in a category or a similar category."

Mr Dews also said price was only one factor F2 was
considering in discussions with potential partners. He said
the decision to look for partners for its existing online
businesses had not been triggered by Fairfax's latest cost-
cutting drive.

Fairfax told last week's annual meeting it would need to
look at cutting costs after the Olympics and a strike at
The Age wiped $25 million from its first-half earnings.
"This would always have been part of the strategy," Mr Dews
said.  He said if F2 failed to find partners for these
businesses, "we'll go on and build positions more slowly."

Mr Dews said a deal with one of the country's broadcasters
could be attractive because of the ability to promote
online sites to the broader audience that tuned into TV.
Mr Dews said while F2 tapped into several investment banks
for corporate advice it had not given anyone the mandate
for this restructuring. (The Australian  08-Nov-2000)

TELSTRA: Denies report of further 1,700 job cut
-----------------------------------------------
Telstra has denied reports it plans to slash an additional
1700 jobs as part of a cost reduction program.

The telecom denied a report in the Australian Financial
Review that it had set a fresh target for job cuts under a
wider reaching reduction program than 10,000 previously
announced. "I am a bit confused by the article," a Telstra
spokesman said. "There is no change to our cost reduction
program as we have announced."

Telstra was under fire from unions last week over a leaked
memo which said it would cut another 400 jobs as it
prepares for the sale of its Network Design and
Construction (NDC) unit.  A document quoted by the AFR said
Telstra was seeking to slash jobs from 50,671 to 34,000.
Telstra announced in March that it would cut 10,000 jobs
over the next two years under a major cost reduction
program.

The spokesman said those figures had not changed, but the
uncertainty of reducing some jobs through natural attrition
meant any cost reduction program could not have a more
specific timetable. (Fairfax I.T. 08-Nov-2000)


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

ACER LABORATORIES: Forecast negative, execs resigns
---------------------------------------------------
Acer Laboratories, one of Taiwan's largest chipset
designers, reveals its chairman has resigned after the
company widened its annual loss forecast.  In August, the
company said it expected a loss of NT$439M for the year
ending December, increasing an earlier forecast loss of
NT$156M.

Following the revisions, chairman Lin Chia Ho and president
Chi Wu submitted their resignations to the company's board.
Mr. Lin's was accepted, while Mr. Wu will remain president.
Shares closed down NT$0.4 to NT$28.2 after falling as much
as NT$1, or the 3.5% limit, to NT$28.6 yesterday. Acer Labs
shares are at an annual low after plunging 87% from their
peak on March 10 this year of NT$214.62.

STAREASTNET.COM: Posts first-half loss
--------------------------------------
Entertainment portal STAREASTnet.com recorded a $104.5
million net loss for the six months ended Sept. 30. That
compared with a $17.37 million net loss for the same period
the previous year. Turnover was just $21.53 million for
this fiscal year's first half. For Q3, the group registered
strong growth in turnover due to rising advertising
revenue, the company said.

TOM.COM: Posts first-half loss
------------------------------
Despite recording strong third-quarter growth in Web-page
viewings and advertising clients, Tom.com -- the Internet
portal controlled by Li Ka Shing -- recorded a net loss of
$194 million for the first half of the year.  The company
posted minimal revenues of $6 million, according to
Michelle Leung, chief operating officer and executive
director of Tom.com. She noted that per-day page views (or
"hits") jumped fivefold from the second quarter.


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

PT TEXMACO JAYA: Ometraco seeks bankruptcy ruling against
---------------------------------------------------------
PT Ometraco Corp is seeking a bankruptcy ruling from the
Jakarta Commercial Court against PT Texmaco Jaya over US$5
million in unpaid promissory notes. Ometraco lawyer Laudin
Napitupulu said the promissory notes matured in March 1998
and Texmaco has not repaid the debt.


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

INTER-LEASE CORP.: Rehab abandoned, liquidation ahead
-----------------------------------------------------
Inter-Lease Corp., leasing affiliate of Nippon Shinpan Co.,
has decided to give up a rehabilitation effort and file for
special liquidation.

Consequenlty, Nippon Shinpan Co. has decided to pull out of
the leasing business as of Nov. 30 to focus exclusively on
its consumer operations. According to the Nihon Keizai
Shimbun, Nippon Shinpan -- which had purchased leased
assets on behalf of Inter-Lease -- will securitize roughly
275 billion yen in leases to the affiliate in order
to repay financial institutions.

Nippon Shinpan had 356.9 billion yen in lease assets on its
books as of March 31, with most of those not extended to
Inter-Lease small in size. In a recent letter, Nippon
Shinpan informed client companies that it would
no longer handle corporate leases, explaining that it would
refocus on credit cards and other core consumer businesses.

Nippon Shinpan is the last of Japan's major consumer credit
concerns to exit from the corporate market. (Indonesian
Daily News On-Line  08-Nov-2000)

SHISEIDO CO: Posts first loss in 55 years
-----------------------------------------
Japan's largest cosmetics maker Shiseido Co Ltd has tainted
its balance sheet with red ink for the first time in 55
years. Group net losses at the world's fourth largest
cosmetics company came to 54.3 billion yen (US$505.5mil)
for the six months to September, compared with a 9.9
billion yen profit for the same period a year ago.

Although the loss was expected after Shiseido issued an
earnings warning in May, its shares fell 1.81 percent to
finish at 1,414 yen yesterday. That was lower than the
1,466 yen close after the May announcement, when Shiseido
shares lost 2.53% but above the lowest price for this year
at 1,182 yen marked in September.

Shiseido recorded a special loss of 69 billion yen to cover
a shortfall in its pension and retirement reserves a
problem affecting many Japanese companies due to tougher
new accounting rules on disclosure.  Japanese corporations
face a widening gap between pension assets and liabilities,
partly because investments have generated low returns in
recent years due to Japan's ultra-low interest rates.

Shiseido, which began as a Western-style drugstore that
opened in Tokyo in 1872, also booked a one-time goodwill
loss of 13.1 billion yen for US salon subsidiary Zotos
International Inc, which it acquired in 1988.

Analysts expect Shiseido's earnings to recover in the
second half of this business year. But they said earnings
were unlikely to bounce back as sharply as Shiseido itself
stated, as sales would be weighed down by sluggish domestic
consumer spending and severe price competition sparked by
discount stores. (Star Online, Reuters  08-Nov-2000)


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

CHO HUNG BANK: Daewoo default exposes it to harm
DAEWON KANGUP: Daewoo default exposes it to harm
DONGYANG MECHATRONICS: Daewoo default exposes it to harm
HANVIT BANK: Daewo default exposes it to harm
KORAM BANK: Daewoo default exposes it to harm
KOREA EXCHANGE BANK: Daewoo default exposes it to harm
KOREA FIRST BANK: Daewoo default exposes it to harm
SAMLIP PRECISION: Daewoo default exposes it to harm
--------------------------------------------------------
The loan default Monday by Daewoo Motor is expected to hurt
its major suppliers and banks heavily exposed to the
company, according to Daewoo Securities Co.

Samlip Precision is most heavily dependent on Daewoo,
accounting for 78 percent of its total sales last year.
Dongwon Metal Ind. depends on Daewoo for 45 percent of its
total sales, followed by Dongyang Mechatronics with 35
percent, and Daewon Kangup with 17 percent.  Among banks,
Hanvit is the most heavily exposed with credit extended out
to 844 billion won, followed by Cho Hung Bank with 448.9
billion won, Korea First Bank with 401 billion won, Korea
Exchange Bank with 338 billion won and KorAm Bank with
235.2 billion won. (Korea Herald 08-Nov-2000)

DAEWOO MOTOR: Fails to reach layoff accord with unions
------------------------------------------------------
Daewoo Motor's management and labor unions yesterday
managed to narrow differences over restructuring measures,
but failed to produce an agreement sweeping enough to
satisfy its creditors.

Headed by Daewoo Motor Chairman Lee Jong-dae and company
union leader Kim Il-sub, both parties engaged in lengthy
talks to settle outstanding disputes over drastic
restructuring, including layoffs of 3,500 workers, at a
hotel in Seoul. But they failed to reach agreement, with
the union sticking to its demands that overdue wages be
paid off prior to any reform moves.

Notified of the progresses in the management-labor talks,
the Korea Development Bank, the main creditor, said that it
and other creditors are not satisfied with Daewoo's self-
rescue efforts to date.

"The tentative agreement on layoffs is not satisfactory to
the creditors. Nor is it sweeping enough to draw our
approval," said Park Sang-bae, a KDB executive. "The
creditors will determine their position on further
provisions of loans after joint review of the tentative
agreement."

On Monday, Daewoo Motor defaulted on 44 billion won ($39
million) in debt, coming closer to full-scale bankruptcy,
as creditors closely linked further loan provisions to
drastic restructuring. The ailing automaker is liable to
settle about 169 billion won worth of bills to its parts
suppliers by Nov. 13.

Industry analysts say that the bankruptcy will strengthen
the hand of the exclusive takeover negotiating partner, the
General Motors-Fiat consortium, while forcing Daewoo's 500-
odd major part suppliers to face insolvency.

"The bankruptcy will push down the company's value, but
make it easier to sell Daewoo to GM because of more
flexibility in layoffs," said an analyst.

As for Daewoo's bankruptcy, GM refused to comment, while a
Fiat official said that the incident will not greatly
affect the GM-Fiat bid for the ailing automaker. Choi Jong-
hak, spokesman for Daewoo Motor labor union, said that the
unionists are determined to closely link the layoff issue
to settlements of all overdue wages, estimated to exceed
100 billion won ($88.5 million). (Korea Herald 08-Nov-2000)

DAEWOO MOTOR: Creditors declare insolvent
-----------------------------------------
Daewoo Motor Co has been declared insolvent by creditors
after its labour union refused to submit a written
agreement on a restructuring package, according to an
official of key Daewoo creditor Korea Development Bank.
According to KDB governor Uhm Rak-yong, the company now is
expected to file for court receivership. Uhm added that
creditors will take comprehensive steps to minimize the
negative impact Daewoo Motor's insolvency will have on its
suppliers.

HYUNDAI ENGIN. & CONSTR.: Battling against bankruptcy
-----------------------------------------------------
Korea's largest builder, Hyundai Engineering &
Construction, is battling to stave off bankruptcy after
being spurned by its bankers and sister companies.

A sister firm from the country's second-biggest
conglomerate, Hyundai Group, said yesterday it would not
help Hyundai Engineering, just days after creditors refused
fresh loans to the firm and threatened to throw it into
court receivership. Hyundai Engineering has debts of about
US$4.4 billion.

Shipping unit Hyundai Merchant Marine said it would not
sell stakes in two group firms to prop up Hyundai
Engineering, the group's flagship company.  Hyundai
Engineering has battled liquidity problems for months,
sparking concern its troubles could harm other group firms
and destabilise Korea's fragile financial system. (South
China Morning Post  08-Nov-2000)

HYUNDAI ENGIN.& CONSTR.: Equity sales `won't cover debt'
--------------------------------------------------------
Hyundai Group's self-help package announced Monday, even if
implemented as planned, will still fall short of defusing
the debt crisis at ailing Hyundai Engineering and
Construction (HEC), a report said yesterday.

LG Investment Securities said that HEC has already sunk to
a nonviable status, as the parent group's full-scale equity
sales are insufficient to cover the contractor's interest
payments.

"Even if HEC raises 601.7 billion won ($537 million)
through its own self-rescue efforts, including stock and
real-estate sales, the ailing construction firm will still
be left with 4.3 trillion won in debts," said the LG
report. "The 601.7 billion won is not enough to cover the
firm's outstanding bills coming due in November and
December."

Referring to Hyundai's plan to raise another 551.4 billion
won by letting Hyundai Merchant Marine sell its stakes in
Hyundai Heavy Industries and Hyundai Electronics
Industries, the report said that the additional capital
infusions will cut HEC's total debts by 1.48 trillion won
to 3.42 trillion won.

"In case the maximum self-rescue efforts are completed, HEC
will be able to make debt repayments by the end of this
year," it said.

However, HEC will again have difficulty repaying 654
billion won in debts due in the first half of 2001, meaning
that the construction unit is certain to fall into another
liquidity crisis next year.  Worse yet, HEC's annual
operating profit of 334 billion won is far smaller than its
annual interest payment costs of 397.5 billion won,
calculated under the best case self-rescue scenario, the LG
report insisted.

It then issued a sell recommendation for HEC shares,
stressing that the huge debt and interest payment burdens
will remain a drag on the company's self-rehabilitation
drive. It also expressed concerns about the feasibility of
the best case scenario.

Indeed, the last-ditch attempt by HEC management and its
largest shareholder, Chung Mong-hun, to force Hyundai
Merchant Marine and other Hyundai companies to sell their
equity holdings to assist HEC are floundering amid
conflicting interests among the affiliates.  The Chung camp
said Monday afternoon that Hyundai Merchant, 4.9 percent
owned by Chung, will sell its 12.46 percent stake in
Hyundai Heavy and its 9.25 percent stake in Hyundai
Electronics Industries to raise cash, adding that part of
the funds will be injected into HEC through bond purchases.

Later in the evening, however, the Hyundai Merchant
management denied that it plans to sell stakes in the two
affiliates to support HEC, citing possible resistance from
shareholders.

"The internal fighting among Hyundai affiliates will
further erode market confidence in the ailing
conglomerate," said an industry analyst. "The proposal for
Hyundai Merchant's stake sales may have been aimed at
defusing public criticism over Chung's refusal to accept
creditors' debt-for-equity swaps for HEC."

He then forecast that Hyundai Merchant and other cash-rich
affiliates are expected to follow Chung's plea for
financial assistance to HEC. Meanwhile, rumors of Hyundai
founder Chung Ju-yung's failing health are further clouding
the outlook for the troubled conglomerate. (Korea Herald
08-Nov-2000)


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

MACKIE INDUSTRIES: Loss maker to be shut down
---------------------------------------------
The Dacay Group of Companies has decided to shut down its
plastic bag-manufacturing subsidiary Mackie Industries
Corp. due huge losses it has incurred since the Philippine
currency started its decline in 1997.

Mackie has been substantially impacted by depreciation of
the peso and high interest rates resulting from the 1997
Asian financial crisis. Primary raw material for Mackie's
products is resin, which has to be imported.  The company
also obtained large dollar and peso loans to maintain its
operations, further contributing to its financial woes.

Dacay Group has filed a notice of closure with the
Department of Labor and Employment that cites the effective
closure date as Nov. 26.

NATIONAL STEEL CORP.: Ispat Int'l wants exclusive bid
-----------------------------------------------------
Dutch steel firm Ispat International NV is asking the
liquidator and creditor banks of National Steel Corp. for
exclusivity in the negotiations for the sale of the ailing
steel company.

A member of the steering committee of NSC's creditor banks
said Ispat made a presentation to the banks last week where
it outlined its investment plans for NSC. However, the
source said both the creditors and the liquidator
(Securities and Exchange Commission associate commissioner
Monico Jacob) were unlikely to give in to the request as
this would mean shutting the door to other prospective
investors in NSC.

Aside from Ispat, Swiss metal trader Glencore International
AG has also expressed strong interest in taking over the
shuttered local steel firm, which has liabilities of P16.5
billion and assets of P29 billion. He also said that the
plan presented by Ispat lacked important details including
its offer price for the plant and how the creditors will be
paid.

The source also noted that the $100 million that Ispat was
reportedly willing to infuse into the company was hardly a
commitment.  "There's nothing formal yet," the banker
pointed out.

Meanwhile, the banker-member of the NSC steering committee
said that Jacob was looking into the creation of two new
subsidiaries for NSC as part of the liquidation plan. One
of these subsidiaries will own the real estate assets
of NSC since foreigners are not allowed to own land in the
country.  The other will own the operating assets of NSC,
including the Iligan steel plant.

The SEC last month ordered the liquidation of the NSC
following the objection of NSC's majority shareholder
Hottick Investments Ltd. to the rehabilitation plan
prepared by the NSC's interim receivership committee,
which is chaired by Jacob.  The SEC then gave Jacob 60 days
to submit his liquidation plan and 30 days for all
claimants to update their claims.

Jacob said that the official liquidation plan would be
firmed up as soon as an appraisal of the steel company was
completed. Jacob, as receiver, had submitted a tentative
liquidation plan to SEC advising that a portion of NSC
's debts be converted into shares of a new subsidiary,
which would hold all the assets of NSC.

Under the plan, the new company will issue 15-year to
20-year long-term commercial papers to creditors whose
debts were not converted into shares of the subsidiary.
The liquidation of NSC would be completed once the shares
have been sold, possibly to a foreign investor, and the
LTCPs have been distributed as approved by the SEC.

He said that this procedure was better than bidding out the
assets of NSC since the assets would be of no use or value
to anyone unless they were operating. (Philippine Daily
Inquirer  8-Nov-2000)


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

PAKARA TECHNOLOGY: Sells factory for large loss
-----------------------------------------------
Pakara Technology has sold its Penang factory, which
previously was used for its aluminium-capacitor
manufacturing business. Actually owned by Pakara subsidiary
Natkap, the factory was sold for RM5.1 million (S$2.3
million), representing a book loss of RM320,371.


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

ASSET MANAGEMENT CORP: Records Bt1.3B loss for 1999
---------------------------------------------------
State-owned Asset Management Corporation (AMC) recorded a
loss of 1.3 billion baht in 1999, according to audited
statements presented to the cabinet yesterday.

Net assets as of year-end (Dec 31) 1999 amounted to 43.99
billion baht, liabilities at 35.3 billion baht. Total
revenue was 988.57 million baht against expenses of 2.33
billion, which included a 2.16-billion-baht charge for
interest payments on issued promissory notes.

AMC had revenue of 988.44 million baht from interest and
investments, with interest and investment expenses of 2.18
billion. Noninterest revenue totaled 130,000 baht, with
non-interest expenses of 153.7 million baht. AMC was
established in 1997 as a bidder of last resort for the
auctioned assets from defunct finance companies.

ELECTRICITY GENERATING AUTH.: Cabinet slashes re-fi amount
----------------------------------------------------------
The Thai Cabinet approved Bt9.33 billion in refinancing
loans for the Electricity Generating Authority of Thailand
(Egat) - instead of Bt37.5 billion the power authority had
sought.

Egat had submitted a request for 28 bonds totalling Bt33.18
billion and two new loans from the Government Savings Bank
totalling Bt4.33 billion. The new borrowing is to be used
to rollover its old debts, which will come due over the
next 14 years.  But the Finance Ministry objected to Egat's
refinancing plan, saying it was not be the right way to
solve its liquidity shortfall. Besides, the ministry added,
it would be improper to approve a lending plan for such a
long period.

"According to its privatisation plan, Egat will have to
sell its power plants by 2003 and thus will have additional
income to service its debts that will come due in the
future," a ministry report submitted at yesterday's Cabinet
meeting concluded.

But to service its debt repayment need prior to 2003, the
ministry suggested Cabinet approve Bt9.33 billion in new
loans for refinancing purposes. Cabinet yesterday agreed to
the proposal.

The Finance Ministry will provide a guarantee on the Egat's
new loans. According to financial analysis conducted by the
ministry, Egat will remain under a liquidity constraint for
several years.  This is because 20 percent of Egat's total
debts will come due for principal repayment between this
year and 2004. And Egat, thus, has to borrow new loans to
rollover its old debts.

The Finance Ministry told Cabinet it would prefer not to
provide a guarantee on Egat's new loans. It said it had
already extended the provision to Bt182.6 billion worth of
debts incurred by the agency, Bt60.6 billion of which is in
local-currency loans.  The existing guarantee for Egat
already accounts for 20.48 percent of the total provision
given by the ministry to all state agencies in the country.

Egat's liquidity problem stems from its high reliance on
loans. Debt financing accounts for 60 per cent of projected
costs. (The Nation 08-Nov-2000)

ITALIAN-THAI DEVEL.: Creditors to file rehab petition
-----------------------------------------------------
Creditors of Italian-Thai Development Plc plan to file a
petition for business rehabilitation with the Central
Bankruptcy Court to rehabilitate the company, according to
a report in the Krungthep Turakij newspaper.

Major creditors are not confident about the company's debt
restructuring plan, which is not scheduled for submission
to creditors for approval until the end of the month, the
report said. The company defaulted on a debt in September
and has liablities totaling 11.0 billion baht.

NAWARAT PATANAKARN: Reports capital reduction to SET
----------------------------------------------------
Nawarat Patanakarn Plc, through plan administrator
Chaiprakarn Company Ltd., has reported to the Stock
Exchange of Thailand that on November 6, it completed a
registered capital reduction from 2,917,540,000 baht to
1.45 billion baht. The reduction was in accordance with its
business reorganization plan.

RAIMON LAND: Court orders rehabilitation, appoints planner
----------------------------------------------------------
The Central Bankruptcy Court held a hearing on the
rehabilitation petition of Raimon Land Plc on November 6.
At that time, the court ordered rehabilitation and
confirmed the appointment of Raimon Land Planner Co. Ltd.
as planner.

RAYONG REFINERY CO.: Posts Bt 2.46B annual loss
-----------------------------------------------
Rayong Refinery Co. Ltd. recorded an annual loss of Bt 2.46
billion for last fiscal year. Notwithstanding posting
revenues of Bt63.56 billion, placing it in the top 10
companies in the country, Rayong nonetheless carries a huge
debt load.

THAI ENGINE MANUFACTURING: Creditors approve rehab plan
-------------------------------------------------------
Creditors have narrowly approved the business
rehabilitation plan of Thai Engine Manufacturing Plc.
(TEM). Some 52 percent of creditors backed plans for
restructuring the machinery maker's debts, which total 6.8
billion baht.

The company is the only one licensed by Mitsubishi Heavy
Industry Co to assemble and distribute light machinery
under the Mitsubishi brand name in Indochina. Earlier this
year, a debt-restructuring plan backed by the Corporate
Debt Restructuring Advisory Committee was rejected by 90
percent of the creditors.

That plan was proposed by the company's managing director,
Teerasak Kanchanasakchai, whose group hired Deloitte Touche
Tohmatsu as the planner. Sumitomo Bank, TEM's major
creditor, then received approval from the Central
Bankruptcy Court to draft a new plan, despite protests by
Mr Teerasak's group.

Peter Schiefelbein of Churchill Pryce Planner Co, which
drew up the new plan, said the case was difficult because
of strong conflicts between the debtor and the creditors,
as shown by threats to the planner.  Last March, Mitsubishi
Heavy Industry reviewed the licence granted to Thai Engine
Manufacturing. It allowed the firm to continue operating
under the Mitsubishi brand until the debt problem was
resolved.

Now the plan had been approved, the licence would likely be
extended, he said. Under the plan, the debt will be divided
into three categories, with 2.7 billion baht transferred to
a new entity similar to an asset management firm. A second
entity will handle other debts totalling 161.2 million
baht, while the remaining four billion baht will remain
with the company.

The firm's creditors, including Mitsubishi Heavy Industry,
will have a 99.8 percent stake in the second entity to
which the company's assets including production facilities
and distribution outlets will be transferred. Revenue
earned from the unit will be used to repay creditors.

The first entity, which will hold receivables totalling 2.7
billion baht, will be wholly-owned by the creditors, with
the proceeds used to repay debts. The registered capital of
Thai Engine Manufacturing will be reduced to 3.75 million
baht from 240 million baht, after which it will be raised
to 71.25 million baht through debt-equity conversion.

In effect, the creditors will emerge with a 95% stake in
the company and have the option of selling the company to
any prospective investors recommended by the Bank of
America. (Bangkok Post  08-Nov-2000)

THAI PETROCHEM.INDUSTRY: Posts Bt6.7B loss
------------------------------------------
Thai Petrochemical Industry Plc. (TPI) recorded a Bt6.7
billion loss third-quarter loss, despite currently
undergoing debt restructuring. TPI's losses were heavily
impacted by foreign exchange depreciation and increased
interest rates. Its revenue stood at Bt62.33 billion,
however, ranking it third among Thai companies. Its
liablities total some Bt161.6 billion (US$3.7 bilion).

UNITED BROADCASTING CORP: Records 9-mo. loss
--------------------------------------------
United Broadcasting Corp. Plc recorded a net loss of 1.5
billion baht for the nine-month period ending Sept 30. By
comparison, the company posted a net loss of 2 billion baht
for the same period the previous year.

Meanwhile, UBC plans to raise its registered capital to
9.71 billion baht by issuing 229.63 million new shares,
with 29.63 million to be set aside for executives and
employees as part of an incentive program. Deputy chief
financial officer Vasili Sgourdos confirmed that the
increase in registered capital, approved by the board
yesterday, merely will reinstate a capital increase agreed
upon earlier this year.

WORLDPAGE: TOT to take over
---------------------------
The Telephone Organization of Thailand (TOT) will take over
the operation of the money-losing Worldpage service from
United Communication Industry Plc (Ucom).

TOT president Sutham Malila said the official takeover of
Ucom's paging business would be made on Dec 1. He said that
Worldpage agreed to abandon the business and had returned
the concession to the TOT after facing financial trouble.
The priority in the takeover would be to take care of the
70,000 customers of Worldpage and then to manage its debts,
particularly the money World-page owed to the TOT under
their revenue-sharing agreement, he said.

He said customers would be unaffected by the change as the
TOT would continue to employ some 200 World-page staff to
take messages on a temporary basis. Bliss-Tel, which was
contracted by Worldpage to do marketing, would be allowed
to continue handle marketing after the takeover. However,
there might be a minor change in the revenue-sharing
arrangement, Mr Sutham said.

Bliss-Tel managing director Attavit Ekanitphone said the
company was happy to continue its role. He said the company
would have no problem reviewing revenue-sharing as its
earnings were derived mainly from monthly fees. Mr Sutham
also said that another paging operator had shown interest
in taking over Worldpage and its customers, and the TOT had
accepted the request for consideration.

Earlier, Samart Paging showed interest in taking over
Worldpage customers but changed its mind later. Samart
Paging managing director Atchapong Asawapantip said the
company changed its mind after learning that the number of
Worldpage customers had dropped sharply, with many
switching to Samart's PosTel service. (Bangkok Post 08-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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