---

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

                             A S I A   P A C I F I C

           Wednesday, November 22, 2000, Vol. 3, No. 228

                                     Headlines


* A U S T R A L I A *

CHAOSMUSIC: In a mess, FTR admits
GOODMAN FIELDER: Food group to be overhauled


* C H I N A  &  H O N G  K O N G *

CROCODILE GARMENTS: Posts narrower annual loss
EAGLE STRENGTH INT'L (HLDG.): Facing winding up petition
GOLDEN LEVEL HONG KONG LTD: Facing winding up petition
GOOD FORTUNE AGENCY LTD: Facing winding up petition
LAI SUN DEVELOPMENT: Posts $2.76B annual loss
MILLION RIGHT LTD: Facing winding up petition
POLITICANA SEAFOOD RESTAURANT: Facing winding up petition
ZHENGZHOU BAIWEN CO.: CINDA-Gov't w/joint debt solution


* I N D O N E S I A *

PANCA FINANCE: DBS,creditors reject plan to settle debts


* J A P A N *

DAIEI, INC: May close 30 outlets
DAIEI INC.: Pays 1.55B yen penalty for breaking JV
HAZAMA CORP.: Posts US$1.03B 6-mos. loss
SNOW BRAND MILK PRODUCTS: Records first pretax loss


* K O R E A *

DAEWOO MOTOR: Pupyong plant to remain shut down
KOREA AEROSPACE INDUSTRIES: Stake-sale talks ongoing


* M A L A Y S I A *

KEMAYAN CORP: To reduce debts under revamp
MBf CARD SDN BHD: To go into voluntary liquidation
MBf CENTRE OF EXCELLENCE: To go into voluntary liquidation
MNI HOLDINGS BHD: Posts half-year loss
RENONG BHD: UEM offers RM6.7B in asset deal
SOUTH MALAYSIA INDUS.: Proposes debt restructuring


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

DMCI HOLDINGS: Incurred P653M loss in first 9 months
MONDRAGON INT'L PHILS.: Rehab financing put on hold
PHILIPPINE NAT.BANK: Lower House to probe PhP25B aid
UNIWIDE GROUP: Signs MOA with creditor banks
URBANCORP INVEST.CORP.: SEC finds transactions questionable


* T H A I L A N D *

ADVANCE AGRO: CDRAC sets rehab plan deadline - or else
A J PLASTIC: Posts Q3 loss
TPI OIL CO.LTD: Creditors approve rehab plan


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

CHAOSMUSIC: In a mess, FTR admits
---------------------------------
Technology investment company FTR Holdings was eager to
sell its stake in ChaosMusic now that market enthusiasm for
online retailers had waned, chairman Mrs Lucy Hughes
Turnbull indicated yesterday. The golden touch reputation
of OzEmail founders and FTR directors Mr Malcolm Turnbull,
Mr Trevor Kennedy and MR Sean Howard did not blind
shareholders at the FTR annual general meeting to the slump
in the value of their stock.

"I can't understand how you people keep painting rosy
pictures and it doesn't show through in the share price,"
complained one shareholder.

FTR has plummeted 82 per cent from its $1.22 March high,
bottoming out yesterday to a year low of 21.5c. Angry
shareholders pounced on Mrs Turnbull's admission that the
performance of FTR's $1.3 million investment in music
retailer Chaos was "disappointing."

"We went into it with good faith and with positive
expectations that have not been met," she conceded. Mrs
Turnbull resigned from the Chaos board on Friday.

Chaos shares have plunged 77 per cent below their December
$1.40 issue price. Having bought in cheap at 45c a share in
June 1999, FTR is now 20c a share under water on its 9 per
cent interest in Chaos. Shareholders demanded to know if
the FTR board had an exit strategy in mind.

"If anybody came along and offered us a satisfactory amount
to the share price then we'd be tempted to liquidate our
holdings," Mrs Turnbull said.

Chief executive Mr Rod Watkins said FTR would only sell if
offered a price "well above" the current value of Chaos
shares. But it was the substantial decline in the value of
FTR that dominated questions yesterday, with shareholders
refusing to accept the explanation that the company had
merely been swept up in the re-rating of the tech sector
following the April correction.

First Mrs Turnbull, then Mr Watkins, then Mr Howard (on the
phone from interstate), and finally Mr Kennedy attempted to
mollify investors. After declaring he held "high hopes" for
Chaos when FTR invested last year, Mr Kennedy was forced to
eat his words yesterday.

"You are right to be criticising us for Chaos, but the rest
of these businesses have a very significant chance," he
said.

Mrs Turnbull and Mr Watkins spent much of the meeting
trying to convince shareholders that, unlike Chaos, FTR's
other technology investments had viable business models and
good prospects, particularly its $11 million stake in Web
hosting company Web Central.

Berating the board for waxing similarly lyrical about Chaos
a year ago, shareholders were less than impressed to learn
that, having acquired Web Central when it was cash-flow
positive and profitable, FTR was pouring more money into
the business.

FTR has no plans to invest in additional technology
concerns this year, preferring instead to concentrate on
its existing investments. The company's current cash-burn
rate of $200,000 a month is expected to improve to the
point where FTR achieves break-even status next year.
(Sydney Morning Herald  21-Nov-2000)

GOODMAN FIELDER: Food group to be overhauled
--------------------------------------------
Goodman Fielder has embarked on a radical overhaul to
simplify its entire operation and accelerate earnings
growth and returns to shareholders.

With the company headed for a lower first half result,
Goodman Fielder will unveil an action plan early next year
which chief executive Mr David Hearn said would have a far
reaching impact on the company.  The maker of Uncle Toby's
and Meadow Lea has already undertaken major changes over
the past five years, but shareholders were yesterday told
that the company was still too complex and costly.

Last month the company announced it would close its Albury
mill in March 2002.  The decision will mean the loss of 70
jobs.  Mr Hearn initiated the strategic review three months
ago, saying it was clear that much more aggressive action
was needed even though the underlying trends of the
business were improving.

He said yesterday every part of the business was under
review and he was confident there were significant
opportunities still available.  "We've done a lot of good
things and now we're going to the next stage," Mr Hearn
said. "Now we're in the next phase which is having got the
right Leggo blocks in the kit, now let's start building
something."

Goodman Fielder chairman Mr Jon Peterson said the board was
confident the food group would generate earnings growth
this financial year despite a subdued first half. (Border
Mail Online 20-Nov-2000)


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

CROCODILE GARMENTS: Posts narrower annual loss
----------------------------------------------
For the year ended July 31, Crocodile Garments Ltd recorded
a loss of $35.72 million on turnover of $728 million. The
loss was down from $196 million the previous year.  Loss
per share was 5.79 cents.  No dividends were declared.

EAGLE STRENGTH INT'L (HLDG.): Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 3, 2001 on the petition
of Tsoi Wa Tang for the winding up of Eagle Strength
International (Holding) Limited. A notice of legal
appearance must be filed on or before January 2.

GOLDEN LEVEL HONG KONG LTD: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 9, 2001 on the petition
of Sin Hua Bank Limited for the winding up of Golden Level
Hong Kong Limited. A notice of legal appearance must be
filed on or before January 8.

GOOD FORTUNE AGENCY LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 3, 2001 on the petition
of Chanway Shatin New Town Development Limited for the
winding up of Good Fortune Agency Limited. A notice of
legal appearance must be filed on or before January 2.

LAI SUN DEVELOPMENT: Posts $2.76B annual loss
---------------------------------------------
Lai Sun Development recorded a $2.76 billion net loss for
the year ended July 31, suffering from the effects of a
weak property market. The net loss was down from the $6.83
billion net loss it recorded for the previous year,
however.

Turnover totaled $4.66 billion for the year, up 165.9
percent from the previous year. Results were dragged down
by a $2.39 billion loss from operations, including a $338.4
million provision for a decrease in the value of properties
under development and another $383.4 million write-off of
completed properties for sale.  The company also had to
write-off $407.8 million for goodwill and make a $638.2
million provision for a decrease in the value of fixed
assets.

Lai Sun Development is the property arm of Lai Sun Group,
founded by Lim Por-yen. His son Peter Lam Kin-ngok took
over as chairman of the listed property company in mid-
November last year.

In early August, holders of its exchangeable bonds and
convertible bonds approved a restructuring proposal, which
including a deferred loan principal repayment. Its main
lending banks also agreed to reschedule principal payments
on their outstanding credits.

In an effort to reduce its debt, Lai Sun Development agreed
to sell a 65 percent stake in the Furama Hotel redevelop-
ment site to a joint venture formed between Pidemco Land
(HK) and American International Assurance Company (Bermuda)
last March. The sale triggered a loss of some $560 million.
Lai Sun subsidiary Crocodile Garments also reported a $35.7
million net loss for the year ended July 31, down from
$196.3 million a year earlier.

MILLION RIGHT LTD: Facing winding up petition
---------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on December 20 on the petition of
Sheen Benefit International Limited (in liquidation) for
the winding up of Million Right Limited. A notice of legal
appearance must be filed on or before December 19.

POLITICANA SEAFOOD RESTAURANT: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on January 31, 2001 on the petition
of Law Shui Cheung for the winding up of Politicana Seafood
Restaurant Limited. A notice of legal appearance must be
filed on or before January 30.

ZHENGZHOU BAIWEN CO.: CINDA-Gov't w/joint debt solution
-------------------------------------------------------
China's Cinda Asset Management Corp (CINDA) and Zhengzhou
city government have reached the framework of an agreement
for solving Zhengzhou Baiwen Co Ltd's debt problems,
Shenzhen's Securities Times has reported.

The report cited Jin Lizuo, a fully-empowered delegate of
Cinda, as saying that the agreement could be implemented
within 1-2 months if supervisory bodies approve it. In
talks with Zhengzhou city government, CINDA has adhered to
the principle that it must recover at least 600 million
yuan in loans, according to Jin.

Jin said that bankruptcy by Zhengzhou Baiwen would harm the
local economy and local government and lead to 2,000 job
losses. If Zhengzhou Baiwen underwent asset restructuring
instead, it may be possible to attract strategic investors.
Such talks already have been held with several companies,
and there is now a possibility that a company from Shandong
may acquire the firm, Jin said.

Jin stressed, however, that no investor is likely to take
on the company's full debt burden and creditors therefore
will be unable fully to recover their loans. Neither will
shareholders be able to recover 100 percent of their
investments. If the Shandong company is unwilling to make
the acquisition, another company is also interested, he
said. CINDA is keenly interested in solving Zhengzhou
Baiwen's problems rapidly, since a delay would make it more
difficult to restructure the company, Jin said.


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

PANCA FINANCE: DBS,creditors reject plan to settle debts
--------------------------------------------------------
Creditors -- including Singapore's DBS Bank and the
International Finance Corporation (IFC) -- have rejected a
debt settlement plan put forward by troubled Indonesian
debtor Panca Finance, but IFC, the World Bank unit, is
now said to have upset other creditors with its decision to
file a bankruptcy suit.

According to a report by IFR Asia, a capital market
magazine, the creditors of Panca -- a unit of Bank Panin
Group -- are sharply divided on how to handle the
Indonesian unit which is now said to have sought court
protection in response to the bankruptcy move and is
offering a settlement plan which is far less attractive
than the earlier proposal.

In its report, IFR said a group of nine creditors of Panca
last week criticised IFC, a private lending arm of World
Bank, for filing the bankruptcy suit against Panca Finance.
The report claimed Panca had offered a settlement plan
which by Indonesian standards was considered good value but
IFC, which owns 6 per cent in Panca, decided to go ahead
and file the petition.

The report alleged IFC had also convinced DBS Bank and
Japan's Dai-ichi Kangyo Bank to go along with it.
But contacted by BT yesterday, a DBS spokesman said the
Singapore bank is not in the bankruptcy lawsuit. The DBS
spokesman said: "We are not a petitioner in the legal suit,
but we are a creditor of the company. We have considered
the restructuring proposal but decided not to proceed with
it."

IFR said the move by IFC had prompted Panca to file for
court protection. In its filing, Panca had offered a
composition plan which replaced its previous offer for a
40-50 per cent cash settlement for its liabilities and
shares for consideration. It now required creditors to take
instead a 90 percent haircut with the debt remaining to be
paid in one year.

IFR reported that Panca upped the ante by announcing in
court a few weeks ago that it had US$170 million (S$298.2
million) more in debts than the US$60 million it had
previously reported. The additional debt is held by 14
unheard of creditors in Hongkong, the Cayman Island and
elsewhere.

IFC alleged that Panca is therefore believed to have
created the additional debt amount from a "phantom" group
of creditors so as to outnumber its real creditors by debt
amount in a vote for its restructuring plan. These 14
creditors have each supposedly given the power of attorney
to a lawyer to vote in favour of Panca's plan.

This move, according to IFR, mirrored a similar tactic used
by cocoa-butter Davomas Abdi in August which successfully
won its case with the help of phantom creditors even
though, it was alleged, there was considerable evidence
that suggested possible forgeries concerning the power of
attorney given by the phantom creditors.

The Davomas precedent convinced Panca's nine creditors that
the bankruptcy suit would fail, IFR reported. IFR said
Panca had in June proposed a partial cash settlement for
its US$60 million debt. The cash settlement paying 40 to 50
cents on the dollar on a net present value basis while
remaining shortfall would be covered by a debt to equity
conversion into the company.

"By Indonesian standards, this was very reasonable and most
creditors were in favour of it. But IFC for some reasons
rejected it," IFR quoted a creditor source.

An IFC official, however, defended the lawsuit, saying
Panca's proposal was unattractive. "Beauty is in the eye of
the beholder. There were reasons to be believed the
proposals were not as concrete as suggested. "The recent
events suggest not a willingness to move ahead by Panca in
resolving this. But they suggest the company was not
willing to deal with its creditors and shareholders in a
fair and equitable manner," the official said.

The Panca case is also expected to bring to light the
methods used by debtors to stall asset sales and debt
repayments with the increasing number of reports of unknown
power of attorney and last-minute claims from unheard
sources.  (Business Times  22-Nov-2000)


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

DAIEI, INC: May close 30 outlets
--------------------------------
Financially troubled supermarket giant Daiei, Inc., with
more than 2 trillion yen in debts, may close more than 30
outlets and cut its workforce by over 1,000.

According to company officials, Daiei likely will
incorporate these measures into its rehabilitation plan it
expects to announce next month. Of about 300 Daiei outlets
across the country, 62 were operating at a loss as of last
August, according to mid-year financial documents.

Closure of the 30-plus money-losing stores has been decided
on due to perceived difficulty in trying to rehabilitate
them. Additionally, operations of the surviving debt-
plagued stores will be dramatically restructured. Daiei
will use part of 200 billion yen in loans offered by its
four main banks, as well as proceeds from disposal of its
assets, to cover the expenses of store closures and
penalties for breach of contracts. About 10 percent of
Daiei's 13,000-person workforce is to be cut, and a 5-
percent salary cut may be implemented.

DAIEI INC.: Pays 1.55B yen penalty for breaking JV
--------------------------------------------------
Daiei Inc has cancelled its joint venture with Time Warner
Bros Consumer Products and Time Warner Entertainment Japan.
As a result, it will pay 1.55 billion yen in penalties.

Daiei also cancelled its contract to sell Time Warner-
branded goods, attributing the decision to stagnant sales
and poor environment at its five outlets. Daiei held a 66.7
percent stake in the venture -- Warner Bros Studio Store
Japan -- with the balance held by the other two companies,
it said.

HAZAMA CORP.: Posts US$1.03B 6-mos. loss
----------------------------------------
Hazama Corp. recorded a 112.5 billion yen (US$1.033
billion) parent-only extraordinary loss for the six-month
period ended Sept. 30. The general contractor wrote off 94
percent of real estate and other nonperforming assets
targeted for such action for the year ending March 2001
under a rehabilitation scheme. It used 105 billion yen
generated through debt waivers by four financial
institutions to assist its efforts.

SNOW BRAND MILK PRODUCTS: Records first pretax loss
---------------------------------------------------
Snow Brand Milk Products Co. recorded a group pretax loss
for the first half of fiscal 2000 -- the first time since
its founding in 1950.  Central to the loss was a massive
case of food-poisoning caused by the company mid year.

Snow Brand reported a pretax loss of 24.34 billion yen for
the April-September period on a consolidated basis. After
taxes and extraordinary items, a losss of 30.66 billion yen
was recorded. Group sales totaled 598.03 billion yen.
Prior year comparisons were unavailable and not provided by
Snow Brand.

On a parent-only basis, Snow Brand recorded a 29.68 billion
yen net loss. That was a 180-degree turnaround from a 1.54
billion yen profit the year prior. Pretax losses totaled
24.42 billion yen, compared with a profit of 7.31 billion
yen the prior year. No interim or annual dividends were to
be declared.


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

DAEWOO MOTOR: Pupyong plant to remain shut down
-----------------------------------------------
Daewoo Motor said yesterday that there is very little
chance that its Pupyong plant, which has been closed for
the last eight days, will open its doors anytime soon.

The company said the plant will have a hard time
normalizing operations until its suppliers, which have cut
off parts deliveries, receive the money they are owed and
get help with their financial troubles.  The company,
however, said its Kunsan and Changwon plants are still
operating.

A company source said concern is mounting as the end of the
month nears because possible chain bankruptcies among the
cooperative firms which supply parts to the Pupyong plant
could occur on or around Saturday. If these companies close
down, it will be difficult to reopen them, even if they get
the necessary funds.

Meanwhile, the Financial Times reported that Daewoo Motor
plans to hold a road show in Europe and the United States
to attract investments.  The newspaper quoted Daewoo Motor
President Lee Young-kook as saying that the company plans
the road show to restore the confidence of overseas
creditors, parts suppliers and workers. The road show will
be held in London, New York and Amsterdam. (Korea Herald
21-Nov-2000)

KOREA AEROSPACE INDUSTRIES: Stake-sale talks ongoing
----------------------------------------------------
Korea Aerospace Industries Co., the country's biggest
aircraft maker, said talks to sell a stake to Boeing Co.
and BAE Systems Plc. are still on going. The company denied
a report by Flight International magazine that discussions
had broken down over the amount of control the two foreign
aerospace companies would be given.

There are differences but we are still talking," said Kim
Chul Soo, a Korea Aerospace spokesman.

Korea Aerospace needs the investment discussions to reach a
successful conclusion before creditors will allow it to
proceed with a reorganization and an exchange of equity for
debt. Still, the 7-month long talks show little sign of a
breakthrough soon with Boeing sticking to its insistence
that it won't hand over cash without a big say in the
company's management.

"We have to be able to meet our own criteria on
investment," said Mark Hooper, a Boeing spokesman in Hong
Kong, who described the talks as "languishing." KAI was
formed in a merger of the aerospace divisions of what were
Korea's largest three business groups last year as the
government sought to reorganize industries crippled by debt
through excessive competition and overlapping investments.

The Flight article said Boeing and BAE want three of seven
director posts and a veto over major decisions, conditions
that the Korean side refused.  While maintaining that the
investment talks could succeed, KAI may be preparing to go
it alone.

An official of the company's finance department said it is
preparing the sale of a 12 billion won ($10.4 million)
local bond to raise cash for operations. The company is
also negotiating with creditors to proceed with a debt-for-
equity swap and other support measures regardless of
whether the company can secure money from overseas.

KAI's major shareholders are Daewoo Heavy Industries Co.,
Hyundai Motor Co., and Samsung Techwin Co., formerly known
as Samsung Aerospace Industries Co.  Korea Aerospace was
set up last October with 289.2 billion won of paid-in
capital. KAI expects it will post 1.4 billion won net
profit this year, its first full-business year, on sales of
1 trillion won.

Boeing, the world's largest maker of jetliners, and BAE
Systems, Europe's largest defense company, won the sole
negotiation rights after a rival group made up of Lockheed
Martin Corp. of the U.S., France's Aerospatiale Matra and
Dassault Aviation SA failed to submit its offer by the
April 21 deadline. (Bloomberg  21-Nov-2000)


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

KEMAYAN CORP: To reduce debts under revamp
------------------------------------------
Kemayan Corp Bhd (KCB) plans to reduce RM651mil of its
RM1.13bil accumulated debts and loans under its
restructuring scheme within the next 12 months.

Its president and chief executive officer Datuk Rickie Tang
Yong Kiat said the company would reduce capital, make a
rights issue and dispose of its equities to settle its
debts.  He said the paid-up capital would be reduced from
RM182,301,528 comprising 364,603,055 shares at 50 sen each
to RM36,460,306 at 10 sen each.

Tang said the capital reduction would result in a credit of
RM145,841,222 which would be used to reduce the company's
accumulated losses.  He said the rights issue valued at
RM72,920,612 would be on the basis of two new KCB shares
and two warrants for every consolidated share.

"We are giving ourselves another three to four years before
the group can return to the black," Tang said after its AGM
yesterday.

He said it was a painful experience for the company and its
shareholders, but he was confident they would support the
company like they did when it was doing well.  Tang said
that upon completion of the exercise, property development
and construction would be its core activities.

He said the company was currently talking with several
parties in property development and infrastructure which
might inject capital or enter joint ventures with KCB.
Owning 1,000 acres of accumulated landbank in Johor Baru
and Seremban, the company is looking at Selangor next.
It also owns 3,000 acres in Indonesia's Bintan island which
is worth S$300mil.

For the financial year ended May 31, the group reported a
loss after tax and minority interests of RM31.5mil compared
to RM757.33mil loss previously. (Star Online  21-Nov-2000)

MBf CARD SDN BHD: To go into voluntary liquidation
MBf CENTRE OF EXCELLENCE: To go into voluntary liquidation
----------------------------------------------------------
MBf Card Sdn Bhd will be voluntarily liquidated, with Chew
Chong Eu tobe the liquidator of the company, MBf Holdings
Bhd said in a statement to the Kuala Lumpur Stock Exchange.
MBf Card is a wholly-owned subsidiary of MBf Equities Sdn
Bhd, which itself is wholly owned by MBf Holdings.

MBf Centre of Excellence Sdn Bhd will be placed under
creditors' voluntary winding up and Tan Kim Leong has been
proposed as the liquidator of the company, MBF Holdings
said.MBf Centre of Excellence is a wholly-owned unit of MBf
Education GroupSdn Bhd, and MBf Education Group is wholly-
owned by MBf Holdings.

MBf Holdings said the winding-up exercise is essential for
the groupto de-consolidate all non-operational companies,
including dormant andnon-profit generating companies, and
to streamline operational activityin the entire group.The
winding-up of MBf Card and MBf Centre of Excellence will
not haveany material effect to the group. (AFX News Limited
20-Nov-2000)

MNI HOLDINGS BHD: Posts half-year loss
--------------------------------------
MNI Holdings Bhd recorded a pre-tax loss of RM51.67 million
for the six-month period ended Sept. 30, a turnaround from
the pre-tax profit of RM90.47 million it posted for the
same period the previous year. Group turnover was 74
percent higher at RM555.22 million, compared with RM319.08
million the prior same period. Net loss for the half-year
year totaled RM62.96 million, compare with a net profit of
RM76.42 million for the same period a year ago. Loss per
share for the semester was 22.33 sen, compared to an
earnings per share of 27.55 sen for the same period last
year.

RENONG BHD: UEM offers RM6.7B in asset deal
-------------------------------------------
United Engineers (M) Bhd has offered to acquire all the
assets pledged by its parent, Renong Bhd, as security for
the Projek Lebuhraya Utara Selatan Sdn Bhd (Plus) bonds in
a deal worth about RM6.7bil.

In a statement to KLSE yesterday, UEM said the assets
pledged by Renong to Plus included stakes in Time
Engineering Bhd (46.8%) and its warrants, Commerce Asset-
Holding Bhd (12.4%) plus its warrants, Crest Petroleum Bhd
(38.6%), Park May Bhd (50.1%) and Faber Group Bhd (60%).
Also included are 100% of the equity in Projek Usahasama
Transit Ringan Automatik Sdn Bhd (Putra), 64% of the equity
in Prolink Development Sdn Bhd, 3% of the equity in
Camerlin Bhd, and Time Investment (Cayman) Ltd receivables.

UEM managing director Datuk Dr Ramli Mohamad said the offer
would help Renong settle the RM4.7bil debt owed to Plus
and, at the same time, see UEM taking control of Renong's
stakes in eight companies, of which six are listed on the
KLSE.

"The rationale behind this move is to safeguard UEM's
interest since the UEM board feels Renong may not be able
to repay the Plus bonds," Ramli told Star Business
yesterday. "This exercise is beneficial to UEM as it is an
exercise to reduce the risk at UEM."

He said UEM's offer was made to the Renong board yesterday
and the latter had till the end of the month to make a
decision.  Renong, in a statement to the KLSE, said it
would appoint advisers to study the proposal.

Trading in the shares of the companies was suspended in the
morning. UEM was last traded at RM5 and Renong at RM1.51.
In 1998, Renong and UEM had embarked on a major debt
restructuring exercise, and UEM's subsidiary Plus issued a
total of RM8.4bil zero-coupon seven-year bonds last year to
repay RM2.9bil of UEM's debts and RM4.7bil of Renong's
debts.

Renong was supposed to sell some of its assets to repay
Plus but has yet to dispose of any. After UEM takes over
the pledged assets, it will dispose of some of Renong's
assets to repay the Plus bonds.  Ramli said that as the
Renong debts amounted to about RM5bil after taking into
account the (9.6% per annum) interest payable on the bonds,
UEM would issue 190 million new shares and 84.7 million 3-
year irredeemable convertible unsecured loan stocks (Iculs)
at a conversion price of RM6.30 a share.

Ramli said that after the new share issue Renong's stake in
UEM would rise to 49% from 38% now. And its stake would
further increase to 54% after the conversion of the Iculs,
making UEM a subsidiary of Renong. In its statement to the
KLSE, UEM said the purchase price for the security assets
were based on market prices of the listed assets, except
for Time Engineering which would be at a premium.

As for the unlisted assets, the prices would be at a
discount to the cost of investment and/or on revalued net
tangible assets.  The offer is subject to a satisfactory
due diligence exercise, independent valuation and approval
of the authorities and shareholders.

As for UEM's put option agreement with Tan Sri Halim Saad
on a 32% block of Renong shares, Ramli said the company
would serve a notice on Halim to exercise the option on or
before Dec 31, 2000. "We have said countless times we will
exercise our put option and Halim has reiterated that he
will honour the obligation," Ramli said.

Halim has to fork out about RM3.2bil for the option with
UEM and RM900mil for the 21.56% of Renong shares held by
Time, making a total of RM4.1bil.  This is seen as a very
expensive way to own a fraction of UEM, given that for
about the same amount of money, it is possible to own 100%
of UEM at current market prices.

UEM also will own a lot more assets than Renong after the
restructuring.  Asked whether this restructuring was
Halim's way to take Renong private since it would no longer
have substantial assets after the exercise, Ramli said: "It
is not a game, it is to remove the risk at UEM, but I can't
speak on behalf of Halim." (Star Online  21-Nov-2000)

SOUTH MALAYSIA INDUS.: Proposes debt restructuring
--------------------------------------------------
South Malaysia Industries has proposed a debt restructuring
with Amanah Merchant Bank totaling RM156 million. In a
letter to the Kuala Lumpur Stock Exchange, the company said
initially it will be able to pay only RM28.5 million of the
debt, which is to come due on December 20. Terms for
repayment of the RM121.5 million balance are still being
negotiated.


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

DMCI HOLDINGS: Incurred P653M loss in first 9 months
----------------------------------------------------
DMCI Holdings Inc., the flagship construction firm of the
Consunji family, posted a net loss of P653.88 million in
the first nine months of this year, a reversal of its P77
million net income in the same period last year.

In documents filed with the Securities and Exchange
Commission, DMCI said that the loss was largely due to the
P943 million worth of non-recurring charges arising from
the write-off of Semirara Coal Corp.'s idle equipment,
deferred stripping costs, mine development costs and
capitalized foreign exchange losses. SCC is a 74.4 percent
owned subsidiary of DMCI.

However, even excluding the one-time charge, the company
would have posted a consolidated net loss of P294 million
because of losses incurred by other major subsidiaries.
Wholly owned DMCI Project Developers Inc. posted a net loss
of P10 million amid an extended slump in the property
sector while 40 percent owned Atlanta Gulf & Pacific Co. of
Manila Inc. registered a net loss of P41 million because of
fewer fabrication contracts and heavy debt servicing.

SCC reported a net loss of P248 million as lower coal
prices continued to erode gains from increased sales
volume, DMCI said. The losses incurred by its subsidiaries
undermined the improved performance of DMCI itself, which
had an income contribution of P200 million by end-September
this year or more than double the P85 million posted in
end-June.

DMCI said that its construction units, particularly Sechy
Soletanche Philippines Corp. and DMCI Laing, fueled its
income growth. One of the biggest major projects recently
awarded to DMCI was the construction of the new
International School of Manila in Fort Bonifacio worth
approximately P1.4 billion. The project involving a turnkey
design and construction contract will be undertaken through
a joint venture with Marubeni Corp. of Japan and Obyashi
Philippines Corp., a 40-percent owned unit of DMCI.
(Philippine Daily Inquirer  22-Nov-2000)

MONDRAGON INT'L PHILS.: Rehab financing put on hold
---------------------------------------------------
Efforts of debt-laden Mondragon International Philippines,
Inc. (MIPI), a casino operator, to rehabilitate its
operations may be put on hold until the political and
economic environment in the country becomes more
"favorable" to investors.

A well-placed source told BusinessWorld yesterday that the
company, together with financial adviser and investor Penta
Capital Investment Corp., has decided to hold off talks
with creditor banks and other prospective investors because
of the unfavorable business climate.

"We're in a wait-and-see stance. Everything has been
stopped because now is not the ideal situation to pursue
these things. We're still waiting for the political and
economic issues to settle down," the source said.

The company has yet to receive the go-signal of its three
biggest creditor banks on the terms of its debt
restructuring.  The company was trying to secure the
approval of Metropolitan Bank & Trust Co., Far East Bank &
Trust Co. which has now been merged with Bank of the
Philippine Islands, and United Coconut Planters Bank before
the political scandal involving President Joseph Estrada
erupted last month and sent the economy into a tailspin.

Clark Development Corp. (CDC) and Malaca¤ang have already
approved the casino firm's rehabilitation. Not securing the
approval of the banks would mean the 650-million Philippine
peso ($13.04 million at PhP49.834=$1) bridge financing
PentaCapital committed to infuse to Mondragon will also be
shelved. The money was supposed to be used for the payment
of debts owed to CDC, the Bureau of Internal Revenue and
the Philippine Amusement and Gaming Corp. (Pagcor).

Almost all of Mondragon's 25 creditor banks have given
their nod on the proposed terms of the restructuring to pay
off the company's PhP6-billion ($121.61 million) debt.
Meanwhile, the source said the planned opening of casino
operations at the Mimosa Leisure Estate in Clark Field,
Pampanga this month has also been deferred. The company was
supposed to resume casino operations in time for the
holiday season.

The casino has been shut since 1998 when the government
took away the firm's gaming license after it failed to pay
rental dues.  In order for PentaCapital to implement
Mondragon's rehabilitation, the financial adviser has asked
creditors for a moratorium on debt payment until the
company starts generating profits.

PentaCapital has also asked the creditor banks to give the
casino firm between eight- and 10-year period to pay its
debts with interest of about 8%.  It has also negotiated
for an equity conversion as well as partial asset-for share
involving some of the Mondragon group's assets together
with properties owned by company chairman Jose Antonio
Gonzales.

However, the banks said earlier they will bargain for
shorter repayment schedule, preferably to five years, as
well as higher interest rates. The proposed 8% interest
rate is also deemed "too low" and should be pegged at least
a few percentage points over the prevailing 91-day Treasury
bill (T-bill) rate.

Of Mondragon's 25 creditor banks, about 20 are unsecured or
semi-secured by equipment, country club and golf club
shares. The semi-secured and unsecured creditors have a
combined PHP1.9 billion ($38.12 million) in exposure to the
group.  Its creditors include Metropolitan Bank and Trust
Co.; Asian Banking Corp.; Asia Trust Development Bank,
Inc.; Bank of Commerce; Chinatrust Bank; Dao Heng Bank;
East-West Bank; Far East Bank and Trust Co.; Bank of the
Philippine Islands; HSBC Corp.; Land Bank of the
Philippines; International Exchange Bank; among others.
(Business World  21-Nov-2000)

PHILIPPINE NAT.BANK: Lower House to probe PhP25B aid
----------------------------------------------------
The House of Representatives is set to investigate the 25-
billion Philippine peso ($500.66 million at PhP49.934=$1)
emergency loan the Bangko Sentral (Central Bank) and the
Philippine Deposit Insurance Corp. (PDIC) extended to the
Philippine National Bank (PNB), which one opposition solon
described as a blatantly "crony deal."

Misamis Oriental Rep. Oscar Moreno yesterday said the
committee on banks and financial institutions should summon
Bangko Sentral Governor Rafael Buenaventura and PDIC
president Norberto Nazareno to explain the loan.  "We will
question these loans since they are not within the charters
of theBangko Sentral and the PDIC. These are loans that are
meant to favor PNB and the owner of PNB. This is another of
those string crony transactions of this administration,"
Mr. Moreno told reporters.

Earlier, BusinessWorld reported banking regulators granted
liquidity assistance to PNB worth PhP25 billion last month.
Of the amount, the central bank extended PhP15 billion
while PDIC lent PhP10 billion.  Mr. Moreno questioned the
regulators' motives in granting the huge amounts to PNB,
whose major stockholder is Lucio C. Tan, a known associate
of President Joseph Estrada. The solon expressed concern
that the government's money is being used to help a
presidential friend like Mr. Tan.

Mr. Moreno said the Bangko Sentralshould remain an
independent central monetary authority and give a valid
explanation for the PNB loan.  "The Bangko Sentraland the
PDIC are accountable for this and they owe our country an
explanation. It is a behest loan I can't see why PDIC
granted that PhP10-billion loan. Imagine, PDIC is hard-
pressed in paying the depositors of the other closed banks
and here it is without difficulty granting a PhP10-billion
loan to PNB," he said.

Mr. Moreno also pointed out PNB already wants to
restructure the emergency loan. From the original 90-day
agreement, PNB wants the contract to be turned into a long-
term loan to be paid in eight years.  Mr. Moreno said there
are several requirements for granting emergency loans under
the New Central Bank Act, but it remains to be known if PNB
had complied with these.

The Bangko Sentral had said it extended the loan after PNB
faced heavy withdrawals in late September and early
October. Depositors were reportedly spooked by reports Mr.
Tan had reneged on the commitment to purchase the 30.39%
stake the government held in PNB.

However, the central bank's justification for extending the
loan clashed with that of PNB president Feliciano L.
Miranda, Jr. who said in a separate BusinessWorld interview
that the money was extended to aid the bank's
rehabilitation. Justifying the PNB loan, the PDIC said the
assistance is backed by outstanding securities worth
PhP21.5 billion. The PDIC noted the PhP25-billion liquidity
assistance falls below the minimum PhP70-billion loan PNB
may avail under the law. The law allows a bank to borrow
from the central bank and the PDIC an amount equivalent to
50% of its total deposits. (Business World  21-Nov-2000)

UNIWIDE GROUP: Signs MOA with creditor banks
--------------------------------------------
The Uniwide Group of Companies said eight of its 13
creditor banks have signed a memorandum of agreement
allowing the retail firm to settle its obligations through
a combination of surrendering assets and cash payments
with discounts.

In a financial statement submitted to the Securities and
Exchange Commission (SEC) Tuesday, Uniwide said that as of
November 15, Philippine National Bank, Allied Banking
Corporation, East West Banking Corporation and ING Bank
are the remaining banks which have not conformed yet with
the proposed rehabilitation plan pending amendments of some
minor details.

The Uniwide management said the Land Bank of the
Philippines has already approved the MOA but has to wait
for all of the other banks to sign first. ING Bank was said
to be in the process of finalizing the MOA before it signs.
East West Bank, which is one of the bank's interested to
share with Uniwide's Metromall property, is waiting for
Allied Bank and PNB before it signs the MOA.

The settlement of Uniwide's obligations with creditors is
part of the conditions before French retail firm Casino
Guichard Perrachon to infuse P3.57 billion in fresh funds
into Uniwide. Uniwide said the banks' approval of the
rehabilitation plan and higher sales have allowed the
discount retailer to reduce losses by 60.23% in the first
nine months of the year to P238.03 million from P598.46
million in the same period last year.

It added that revenues grew by 52.42% during the nine-month
period to P289.18 million from P189.72 million a year ago.
The combined liabilities of the Uniwide units were placed
at more than P11 billion, which is still lower than their
combined assets amounting to P19.86 billion. The Uniwide
group incurred huge debts following its expansion into
property development.

The Gow family-owned Uniwide filed for a suspension of debt
payments with the SEC on June 26 last year after failing to
meet its obligations to creditors. Uniwide was reportedly
eyeing to sell its US Coastal Mall along Roxas boulevard to
interested parties other than Casino Guichard, as the mall
has not been posting substantial profits.

On the other hand, Casino Guichard is operating more than
112 hypermarkets, 473 supermarkets, and 2,230 convenience
stores in France as of end-1998. It also operates in
Poland, the United States, Argentina, Brazil, Columbia,
Venezuela, and recently in Taiwan and Thailand.(ABS/CBN
News Channel  22-Nov-2000)

URBANCORP INVEST.CORP.: SEC finds transactions questionable
-----------------------------------------------------------
The Securities and Exchange Commission has found Urbancorp
Investment Corp. (UII) to have illegally sourced funds and
sold commercial papers not registered with the SEC.

The SEC report also said UII and its mother company, the
failed Urban Bank, had the same set of directors and
officers in violation of BP66 which allows such a-set-up
only "where the majority or all of the equity of the
investment house is owned by the bank."

Urban Bank owns only 40 percent of UII, not enough to
consider it majority owned, the SEC report said. The report
also said UII borrowed from retirement funds that did not
have the legally mandated approval of the Bureau of
Internal Revenue. BIR approval would have made these
transactions exempt from registration. As such, the report
said the SEC examiners "considered the borrowing issues as
illegal sourcing of funds."

The investment house, the report added, violated a Monetary
Board resolution requiring it to derive at least 25 percent
of its gross income from underwriting and other fee-based
activities. It was found to have banked too much on its
trust operations or the sale of receivables which were
eventually blamed for the collapse of Urban Bank.

Complaints filed by government regulators with the
Department of Justice alleged that the bank, headed by
chairman Arsenio Bartolome III and president Teodoro
Borlongan, absorbed the bad loans or trash receivables of
UII which they also headed. One week before declaring a
bank holiday, when it was being besieged by depositors,
Urban Bank absorbed P4.6 billion of UII's bad loans,
leaving it only P125 million in cash and less than P1
billion in quick assets to meet more than P8 billion in
deposit liabilities.

Affidavits annexed to the complaint said people related to
the officers of Urban Bank and UII where among the
beneficiaries of the transfer of UII's bad loans to the
bank. These people got their money back as Urban Bank
transferred P4.6 billion of its remaining cash to UII in
exchange for the bad loans which were paid their full face
value plus accrued interest. (Philippine Star  22-Dec-2000)


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

ADVANCE AGRO: CDRAC sets rehab plan deadline - or else
------------------------------------------------------
The Corporate Debt Restructuring Advisory Committee has set
a deadline for paper producer Advance Agro, saying that if
the company's restructuring plan is not concluded by the
end of the month, the case should be brought to the
Bankruptcy Court.

A J PLASTIC: Posts Q3 loss
--------------------------
A J Plastic recorded an unaudited loss of Bt44.9 million
for the third quarter of this year. That was down
substantially from a loss of Bt78.1 million for the same
period the previous year. For the first nine months of the
year, the company posted an unaudited loss of 35.6 million
baht. That compares with a loss of Bt99.8 million for the
same period last year.

TPI OIL CO.LTD: Creditors approve rehab plan
--------------------------------------------
The restructuring plan of TPI Oil Co Ltd has been approved
by 99.7 percent of its creditors, according to the
company's planner, Effective Planners Ltd, in a statement.
TPI Oil is one of Thai Petrochemical Industry Plc's seven
key subsidiaries, with a current debtload of Bt4.2 billion.
A Nov. 30 court hearing has been scheduled for reviewing
and formally ratifying the approved restructuring plan.


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

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

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

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

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

                         *** End of Transmission ***