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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

           Tuesday, November 28, 2000, Vol. 3, No. 231

                                    Headlines


* A U S T R A L I A *

LOY YANG: Energy firm in the red
NEWS CORP: Shares fall further
SATELLITE GROUP: Losing $40,000/week
SATELLITE GROUP: Funds for magazine publication dry up


* C H I N A  &  H O N G  K O N G *

DAILYWIN GROUP LTD.: Posts 1H HK$5.7M net loss
GUANGDONG ENTERPRISES: 19 lenders accept revamp plan
KIN DON HOLDINGS: Shares fall 7.7% on capital reduction
SIU FUNG CERAMICS HLDGS.: Daido to buy mainland assets


* I N D O N E S I A *

SALIM GROUP: IBRA to sell its palm oil plantations


* J A P A N *

DAIEI INC.: 4 creditor banks view rehab plan favorably
INTER-LEASE GROUP: Files for court liquidation
MITSUI CONSTRUCTION: May seek debt waiver
TOKYO LIFE INSUR.: To sell HQ to offset paper losses


* K O R E A *

DAEHAN MERCHANT BANK: Owners found concealing wealth
HANGDO MERCHANT BANK: Owners found concealing wealth
HYUNDAI ENGIN.& CONST.: Approves debt-to-equity swap
KOREA DELPHI CO.: To receive W32B in overdraft funds
SAMSHIN LIFE: FSC rejects plan, to declare it nonviable
SAMYANG MERCHANT BANK: Owners found concealing wealth
SEIL INDUSTRIAL CO.: Goes bankrupt after note default


* M A L A Y S I A *

MALAYSIAN AIRLINES: Gov't in talks to buy 29% MAS stake
RENONG BHD.: Unconvinced investors send shares reeling
UNITED ENGINEER.: Unconvinced investors send shares reeling


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

ASB GROUP: Interim receiver recommends rehab plan to SEC
PILIPINAS SHELL PETROL.: Refinery closure if no tariff hike


* T H A I L A N D *

CENTRAL PAPER INDUSTRY: Completes debt-restructuring plan
NATURAL PARK: Creditors approve rehabilitation plan
PREMIER ENTERPRISE: Rehab plan lodged with Bankruptcy Court
SOONG HUA SENG GROUP: Given debt deadline
THAI DURABLE TEXTILE: Rehab pact with Bangkok Bank soon
THAI ENGINE MANUFACTURING : Records Bt363M Q3 loss
THAI MODERN PLASTIC INDUSTRY : Posts Bt1 M Q3 loss
THAI PETROCHEM.INDUS.: Creditors approve rehab plan
UNIVERSAL FOOD: Post Q3 loss


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

LOY YANG: Energy firm in the red
--------------------------------
The strengthening in Victorian electricity prices over the
past six months has failed to turn losses into profits for
the generating industry.

Horizon Energy, owner of 25 per cent of the state's largest
generator, Loy Yang A, recently told the stock exchange it
expected the power station to report a loss for the year to
June 2000. The company blames electricity prices below
those forecast at the time of privatisation. But the
situation will be compounded by the $20million the
generator lost because of the snap strike by La Trobe
Valley operators earlier this month.

The strike cut power supplies dramatically and meant
generators had to buy electricity in the spot market to
fulfil long-term contracts at regular market prices.
Victorian generators are involved in a struggle with
retailers over contracts to supply retail customers between
the end of the old regulated system on January 1, 2001, and
the introduction of contestability, probably a year later.
The so-called vesting contracts, which expire on New Year's
Eve, account for about 40 per cent of the electricity
market.

Retailers are bidding for new contracts at similar levels
to the current contracts, while the generators are holding
out for higher levels, aided by the onset of summer and
fears of shortages in the market and price spikes. If no
new contracts are signed and the summer is hot, generators
such as Loy Yang will profit from high spot prices.

Loy Yang is heavily in debt because of gearing ratios
worked out on the optimistic, pre-privatisation projections
for power prices. The company has missed the last three
debt payments on its $300 million junior debt but expects
to make a partial payment, of $4-5 million, by the end of
the month.

In June next year, Loy Yang is expected to fail to meet the
financial ratios demanded by the lenders who provide senior
debt. But repayments on senior debt will still be made and
lenders are not expected to take any action for the
breaches. Loy Yang lost $11 million in 1999-2000 and $41
million the previous year. (Australian Financial Review 25-
Nov-2000)

NEWS CORP: Shares fall further
------------------------------
Shares in Rupert Murdoch's media group News Corp continued
their unrelenting retreat yesterday with a string of
factors driving negative sentiment towards the stock.
Analysts said the continuing devaluation of U.S. media and
telecommunications stocks was lowering the value of the
proposed $40 billion spin off of News Corp's satellite
assets.

Concerns over earnings in the slowing U.S. economy, a
downturn in advertising and lingering disappointment with
lower than expected first quarter earnings unveiled earlier
this month also contributed to sentiment.  News Corp shares
finished 35c, or 2 per cent, lower at $16.71 while the
preferred scrip dropped 32c to $14.10.

The ordinary shares have lost more than 7 per cent this
week with yesterday's intra-day low of $16.37 the stock's
lowest point since late January.  On Wall St overnight, the
barometer for global technology companies, the Nasdaq
composite index, tumbled 116.11 points to 2755.34, its
lowest close since October 19, 1999.  Investors concerned
about corporate earnings in a slowing economy drove the Dow
Jones industrial average 95.18 points lower to 10,399.32.
(The Border Mail Online  25-Nov-2000)

SATELLITE GROUP: Losing $40,000/week
------------------------------------
Australia's first listed gay property and media company,
The Satellite Group, is haemorrhaging $40,000 a week
through its media arm, which is its only remaining asset.

Administrator Mr Tony McGrath of KPMG Corporate Recovery
told a creditors' meeting on Friday that the group had lost
its entire $25 million in raised capital from its August
1999 float. A further $15 million to $20 million was
unaccounted for.

Satellite's only surviving asset is its media stable of six
gay and lesbian publications, which Mr McGrath valued at
"not very much", despite Satellite's forecast of $7.7
million in annual revenue for the year ending June 30,
2000. Its property assets - which were estimated to gross
$161.8 million when finished - have all been sold or are in
the hands of mortgagees.

KPMG was appointed as administrator to the crippled company
on November 17, little more than a year after Satellite
listed in August 1999 with a share value of 50› each. "I
would doubt highly whether shares in the Satellite Group
are of any value now," Mr McGrath said.

Mr McGrath was unable to map exactly where Satellite's
money had gone, claiming the company's record of financial
transactions was indecipherable. "The whole thing is just
severely damaged," he said. (Australian Financial Review
25-Nov-2000)

SATELLITE GROUP: Funds for magazine publication dry up
------------------------------------------------------
The Satellite Group's most valuable asset - its flagship
publication Outrage - has suspended production as
Australia's first gay media and property group's
administrator struggles to find funds to pay creditors.

The 17-year-old Outrage magazine, which has been relaunched
and redesigned several times in the last few months, will
not be published "for the foreseeable future," according to
a notice placed in Capital Q magazine.  Creditors and
shareholders will now be waiting to see how much KPMG
administrator Tony McGrath can salvage from the remaining
titles in Satellite's depleted stable of magazines and
property assets.

Satellite Media paid $800,000 for six gay and lesbian
publications, but when PWC was commissioned by Satellite to
value the magazine and newspaper assets they came with a
figure of $7.2 million.  But a large part of the valuation
is believed to be attached to the potential development of
integrating the media assets into a gay portal.

Expressions of interest for the magazines will be received
in the next few weeks but speculation centred around it
being sold to a management buyout.  Two landmark pubs owned
by Satellite - the Beresford and Beauchamp Hotels in
Sydney's Darlinghurst - are to be sold.

The marketing campaign for their 19 December auction began
last weekend.  The Sydney-based company has been dogged by
controversy since its disappointing ASX debut with
boardroom battles between its founder and former managing
director Greg Fisher and its former chairman Dr Kerryn
Phelps.

Dr Phelps, who heads up the Australian Medical Association,
resigned in August after the board decided not to appoint a
voluntary administrator.  The apparent change of direction
from the present board - which is now headed by George
Markos - is yet to calm investors, who want to know what
the company did with the money it raised with so much
fanfare last year.

Mr McGrath's first meeting last Friday with some of the
company's 400 creditors - including employees - offered
little hope of seeing much of their money back. Mr McGrath
found that the company lost $25 million it raised from its
August 1999 float and another $15 million to $20 million
was not accounted for.

Satellite failed to reach its forecast $7.7 million in
revenue for the year ending June 30 2000.  Shares in the
company, which were 50c when the group was floated last
September, have been suspended since July. They last traded
at 15c.  Mr McGrath reportedly found it difficult to
decipher where the money had gone in the company and could
not put a valuation on the media assets. (The Australian
27-Nov-2000)


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

DAILYWIN GROUP LTD.: Posts 1H HK$5.7M net loss
----------------------------------------------
Dailywin Group Ltd. recorded a net loss of HK$5.7 million
for the six months through September, up from a HK$3.1
million net loss for the same period the previous year.
Loss per share was 4.4 HK cents compared with 2.9 HK cents
for the same period the year before. Revenue rose 4.3
percent to HK$123.7 million. No interim dividend was
proposed.

GUANGDONG ENTERPRISES: 19 lenders accept revamp plan
----------------------------------------------------
More than 20 percent of the creditors of cash-strapped
Guangdong Enterprises (Holdings) (GDE) have agreed to its
proposed restructuring plan, according to the liaison bank
for the creditor banks' steering committee.

"Notices of final credit approvals for the terms of the
proposed restructuring had been received from 19 banks
holding an aggregate of over 21 per cent of the banks'
claims against the groups," Standard Chartered Bank said in
a statement. Creditor banks had until December 6 to react
to the GDE agreement.

"There have been no indications whatsoever of opposition to
the proposal," said Standard Chartered's EM (Jake)
Williams, steering committee chairman. "I feel that this
reflects the fact that the restructuring is clearly more
economically beneficial to banks than the alternative of
liquidation of the group.

"I urge all banks to quickly provide their positive
responses in order to avoid missing the December 6, 2000
deadline. The banks which miss the deadline are not
entitled to the substantial additional restructuring
consideration provided by the Guangdong Provincial
Government."

The revamp of GDE, the Guangdong government's flagship
investment arm in the SAR, also involves its listed units,
Guangnan (Holdings) (1203) and Guangdong Investment (0270).
GDE announced in December 1998 it would undergo a compre-
hensive restructuring, shortly after the closure by the
central bank of the Guangdong government's other flagship
investment arm, the Guangdong International Trust and
Investment Corporation (Gitic). (Hong Kong iMail 25-Nov-
2000)

KIN DON HOLDINGS: Shares fall 7.7% on capital reduction
-------------------------------------------------------
The stock of Garment maker Kin Don Holdings Ltd. fell 7.69
percent (or 0.5 HK cents to 6 HK cents) after it announced
plans for a capital reduction and a one-to-10 stock split
to reduce its accumulated losses in 1999.

The company would use the resulting proceeds of HK$84.6
million to eliminate part of its accumulated losses of
HK$227 million as of Nov. 30, 1999. Kin Don said it
proposed to reduce its paid up capital and par value to 1
HK cents each from 10 HK cents each currently by the
cancellation of 9 HK cents paid up capital on each issued
share. The company also proposes a one into 10 stock split
upon the completion of the capital reduction.

After completion of the proposals, the authorized share
capital of the company will remain at HK$1 billion divided
into 10 billion new shares, it said. The company said the
moves will improve its financial position, cash flows
and restore it to a normal level of operation. (Quamnet
News 27-Nov-2000)

SIU FUNG CERAMICS HLDGS.: Daido to buy mainland assets
------------------------------------------------------
Concrete maker Daido Group, through a subsidiary, has
agreed to pay HK$22 million to buy interests in three Sino-
foreign joint ventures from Siu Fung Ceramics Holdings
Ltd., a company under liquidation procedures.

The ventures build and install ceramics-making equipment
and make bathtubs, wash basins and toilets. Daido also
agreed to pay an additional HK$20 million once Holdco, a
company it plans to set up to hold the Chinese assets, is
listed on the Hong Kong stock exchange. Daido indicated it
would implement its plans within six months and take
control of Siu Fung.


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

SALIM GROUP: IBRA to sell its palm oil plantations
--------------------------------------------------
Indonesia's bank rescue agency will complete the sale of
the Salim Group's palm oil plantations to Malaysia-based
Kumpulan Guthrie Bhd. early this week, according to a
report in The Asian Wall Street Journal citing unidentified
bank officials.

Kumpulan Guthrie will buy the assets for more than three
trillion rupiah ($320 million). The sale would be the
Indonesian Bank Restructuring Agency (IBRA)'s second
largest transaction since its inception in 1998. The palm
oil assets were pledged to IBRA by PT Bank Central Asia's
former owner, the Salim Group, in return for bailing out
the bank during the financial crisis three years ago, the
paper reported.

The sale is the latest in a string of Salim assets sold
over the past two weeks, including Salim's Mosquito Coil
Group and stakes in food and soap-making companies.
(Bloomberg, The Asian Wall Street Journal, 27-Nov-2000)


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

DAIEI INC.: 4 creditor banks view rehab plan favorably
------------------------------------------------------
The four main creditor banks of Daiei Inc. appear united in
support for the ailing supermarket operator Daiei Inc.'s
reconstruction program.

Tokai Bank, Sanwa Bank, Sumitomo Bank and Fuji Bank said in
a joint statement that they are considering buying 120
billion yen of preferred shares in Daiei as requested. In
addition, the four banks said they also are studying the
requested establishment of commitment lines worth 500
billion yen.

INTER-LEASE GROUP: Files for court liquidation
----------------------------------------------
A financing unit of credit card company Nippon Shinpan Co.
Ltd. filed for court liquidation Monday drowning from bad
loans.

Inter-Lease Corp. filed with the Tokyo District Court with
liabilities totaling 560 billion yen (5.0 billion dollars),
a company official confirmed. "We had no choice but to
liquidate our business due to heavy losses resulting
from our investments in real estate during the bubble
economy" of the late 1980s, he said.

Nippon Shinpan is Inter-Lease's biggest shareholder with a
stake of 8.8 percent. Other shareholders include Sakura
Bank Ltd., Sanwa Bank Ltd. and Tokai Bank Ltd. Last month
Nippon Shinpan downgraded its earnings forecast in the
current fiscal year ending next March due to a special loss
of 137.7 billion yen related to Inter-Lease. (Agence France
Presse  27-Nov-2000)

MITSUI CONSTRUCTION: May seek debt waiver
-----------------------------------------
Ailing medium-sized general contractor Mitsui Construction
has confirmed it suffers from a negative net worth of 71.5
billion yen (S$1.13 billion) and may be forced to seek help
from banks.

A spokesman for the troubled builder said that the company
is considering whether it should make a request to its main
creditor banks to waive debts, but added that no decision
has yet been made.

"We have not decided yet on how much we would ask them to
forgive," the spokesman said, adding that the company would
announce its medium-term business plan after the decision.

Mitsui president Kazuhiro Inamura said the construction
firm is also considering a tie-up with other general
contractors. Yesterday, the yen fell to a nine-month low
against the US dollar as Mitsui's news fanned concern that
bad loans at Japanese banks may stall the nation's economic
recovery.

The yen dropped to 110.82 per US dollar from 110.22 on
Thursday, leaving it at its lowest level since Feb 25. The
currency is down 2.5 per cent versus its US counterpart in
the past month. Against the euro, it fell 0.35 per cent to
92.92.

Mitsui said it will probably ask Sakura Bank and other
creditors to forgive more than 100 billion yen in loans.
Mitsui would then cut its capital and issue new shares to
allocate them to Mitsui corporate group firms, it said.
If Mitsui gets the debt waiver, it will be the seventh
Japanese construction company to win forgiveness of loans
from banks in three years, following Hazama in September.

The construction industry is dubbed as one of the nation's
most troubled, given falling private and public orders and
increased costs to cope with problem assets created after
the burst of Japan's asset bubble in the past decade.
Investors said they are reluctant to buy yen assets on
concern that more companies in Japan may fail.

Japanese bankruptcies rose for a 12th month last month,
according to Tokyo Shoko Research, a credit research firm.
Liabilities left by bankrupt companies expanded more than
tenfold to a record 8.4 trillion yen. Forecasts for slowing
growth may keep the Bank of Japan from raising interest
rates in the months ahead, which analysts say will be
another negative for the yen. (Straits Times  25-Nov-2000)

TOKYO LIFE INSUR.: To sell HQ to offset paper losses
----------------------------------------------------
Tokyo Mutual Life Insurance Co. is considering selling its
headquarters at a prime Tokyo site to offset paper losses
on stockholdings.

According to a report in the Nihon Keizai Shimbun, the
insurer also will ask investors -- including Daiwa Bank --
to provide capital to try to boost its solvency margin to a
healthy 600% or more. Tokyo Life's solvency margin appears
to have stood below 400% as of Sept. 30.

This is above the 200% level that requires intervention by
the monetary authorities but any fall is a threat to its
creditworthiness amid the recent spate of failures in life
insurers. Tokyo Mutual had a paper loss on securities
holdings of 71 billion yen as of March 31, and the figure
is believed to have grown since the stock market turned
down.

As well as the headquarters in Tokyo's Shimbashi district,
the insurer also plans to sell the Otemachi Nomura Building
that houses Daiwa Bank's headquarters in Tokyo's main
business district. If hard to sell in one piece, the
building may be securitized for sale.

Both the property sales and the capital-boosting plan are
to be announced Tuesday when the insurer releases its
fiscal 2000 first-half earnings. The recent failure of
Chiyoda Mutual Life Insurance Co. and Kyoei Life Insurance
Co. has heightened fears of collapse in Japan's life
insurance industry. (Indonesia Daily News On-line  25-Nov-
2000)


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

DAEHAN MERCHANT BANK: Owners found concealing wealth
HANGDO MERCHANT BANK: Owners found concealing wealth
SAMYANG MERCHANT BANK: Owners found concealing wealth
-----------------------------------------------------
The Korea Deposit Insurance Corp. (KDIC) said yesterday it
has uncovered 18 billion won ($15.5 million) worth of
property concealed by six major shareholders of closed
merchant banks including Hangdo, Daehan and Samyang.

KDIC said these executives responsible for the insolvencies
of the institutions hid these properties shortly before and
after the closings through gifts to wives, father-in-laws,
an infant son and other kin, and concealing their real
estate under assumed names.  The state-run agency uncovered
the property while investigating the holdings and debts of
large shareholders linked with the insolvencies.

The corporation said it will take legal action to
temporarily seize the property or obtain court injunction
banning them from disposing of the property. According to
KDIC, Cho Joon-rae, the majority shareholder of Hangdo
Merchant Bank, transferred his real estate holding worth
7.78 billion won to his father-in-law upon the suspension
of business in December 1997.

Chun Yoon-soo, the majority shareholder of Daehan Merchant
Bank, transferred his property valued at 500 million won to
his three-year-old son in November 1997, before the company
was ordered to suspend business in December. (Korea Herald
25-Nov-2000)

HYUNDAI ENGIN.& CONST.: Approves debt-to-equity swap
----------------------------------------------------
Hyundai Engineering & Construction Co., the nation's No. 1
contractor, approved a debt for equity swap by Hyundai
Group founder Chung Ju Yung as part of the company's plan
to reduce its debts, Yonhap news reported.

At a board meeting, the contractor agreed to Chung's sale
of 170 billion won ($143 million) worth of Hyundai
Engineering's corporate bonds, Yonhap said, citing the
company. The bonds will be converted into 34 million common
shares at a face value of 5,000 won a share on Dec. 4.

Once the transaction is complete, Chung will become the
contractor's largest shareholder with an 11.7 percent stake
from 0.5 percent, according to Yonhap. The swap is part of
Hyundai Engineering's plan, announced last week, to raise
1.3 trillion won to prevent the debt-ridden contractor from
going bankrupt.

Chung also plans to sell his 2.69 percent stake in Hyundai
Motor Co., the nation's largest automaker, to Hyundai Mobis
Co. in hopes to raise about 90 billion won for the
construction arm of the Hyundai Group. If that takes place,
Chung's holdings of Hyundai Engineering shares will go up
to 16.3 percent, Yonhap said.

Hyundai Engineering has to repay a fifth of its 5.2
trillion won of debt by this year's end to avoid going
bankrupt. (Bloomberg, Yonhap News 26-Nov-2000)

KOREA DELPHI CO.: To receive W32B in overdraft funds
----------------------------------------------------
Korea Development Bank (KDB), primary bank for Daewoo
Motor, has decided to extend a 32 billion won ($26 million)
overdraft loan to cash-strapped Korea Delphi Co., the
largest auto parts maker in the country which suffers from
a liquidity problem due to bankruptcy of Daewoo Motor.

The emergency loan will enable the borrower to meet its
bonds due for repayment, worth 32 billion won, a KDB
official said Saturday.  The overdraft loan should be paid
back in 90 days, the official said, adding the bank's
decision is based on the auto parts maker's sound financial
strength and the negative effect it would have on the
national economy if the company is allowed to become
insolvent.

Korea Delphi, one of Daewoo Motor's 504 first-tier
contractors, supplies around 30 percent of Daewoo Motor's
auto parts, excluding engines and body frames.  Korea
Delphi netted 29.3 billion won in profit last year with
debt ratio of 118 percent. (Korea Herald  27-Nov-2000)

SAMSHIN LIFE: FSC rejects plan, to declare it nonviable
-------------------------------------------------------
The operational improvement plan proposed by Samshin Life
Insurance, which included measures to expand assets, has
been rejected by the Korean government. The company now
will be designated nonviable, according to the Financial
Supervisory Commission. Last month, the FSC deliberated on
the self-rescue plans of eight floundering insurance
companies.

SEIL INDUSTRIAL CO.: Goes bankrupt after note default
-----------------------------------------------------
Car interior goods supplier Seil Industrial Co. became the
latest victim of Daewoo Motor's collapse, going bankrupt
after defaulting on 2.4 billion won worth of promisory
notes on Tuesday.


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

MALAYSIAN AIRLINES: Gov't in talks to buy 29% MAS stake
-------------------------------------------------------
Malaysia's Prime Minister Mohamad Mahathir has said that
RM8 "could be a good price" per share for buying a 29 per
cent stake of national carrier Malaysian Airline Systems
Bhd, although the government is still negotiating
the price.

The Malaysian government has approved plans to buy the
stake from Naluri Bhd, a company controlled by businessman
Tajudin Ramli. The sticking point is the share price, with
Mr Tajudin asking for as much RM1.79 billion (S$828
million), the Asian Wall Street Journal reported on Friday
citing anonymous sources familiar with the plan.

Investors are watching for signs the government may bail
out another tycoon battling dwindling assets and swelling
debt after the country's recession in 1998. The airline's
shares closed on Friday at RM3.22, less than half the
RM8 Mr Tajudin paid per share in 1994.

Malaysian Airline has posted losses for three consecutive
years through March 2000. The government is counting on a
foreign shareholder to boost the airline's competitiveness
at a time when air travel in the region is increasing.
Dr Mahathir said Malaysian Airline can't avoid the global
trend of forming alliances with other airline companies.

"All we have done so far is to say that we will study the
possibility, selling shares or cooperating in some kind of
joint cooperation with others," Dr Mahathir told reporters
in Singapore on Saturday.

SAirGroup's Swissair, Europe's fifth-largest airline,
Qantas Airways Ltd, Australia's biggest carrier, and KLM
Royal Dutch Airlines NV have been named as potential buyers
of a stake in the carrier. "We are open. There are lots of
people who have become suitors," Dr Mahathir said. "At the
moment, MAS is not yet satisfied with the suitors and is
maybe looking at other things as well."

Naluri, which is 47 per cent owned by Mr Tajudin, has RM1
billion of debt. (Business Times  27-Nov-2000)

RENONG BHD.: Unconvinced investors send shares reeling
UNITED ENGINEER.: Unconvinced investors send shares reeling
-----------------------------------------------------------
The Malaysian market remained unconvinced that United
Engineers Malaysia has done the right thing in taking over
the pledged assets of parent Renong Bhd.

Upon UEM's re-quotation yesterday since trading was halted
on Monday, the share price hit the 30 percent trading
limit, falling to RM3.50 in early trading from RM5. Renong
skidded 18.5 percent to RM1.23 although it is seen as the
main beneficiary of the group's latest debt restructuring
exercise.

The counters of the two companies -- controlled by tycoon
Halim Saad -- managed to recover in late trading. UEM ended
the day at RM3.86, down RM1.14, while Renong shed 12 sen to
close at RM1.39. The price collapse of UEM in the morning
forced the management to call a last-minute meeting with
journalists and analysts to reiterate the merits of the
scheme.

At the hastily arranged conference yesterday afternoon, UEM
managing director Ramli Mohamad said UEM plans to take over
Renong's special purpose vehicle (SPV) -- and not Renong's
assets and debts -- that issued a bond to Plus and pledged
Renong's assets last year. This is because Plus -- the
owner of the highly profitable North-South Expressway and a
subsidiary of UEM -- had, in turn, issued RM8.4 billion in
bonds to shave the debts of UEM (RM3 billion) and Renong
(RM5.4 billion).

"The (Renong SPV) debt is already in UEM's books since
1999. This is really a cleaning-up operation by UEM to
mitigate future risks," he said.

He said Renong has not made much progress in selling its
assets as promised to repay Plus within the next seven
years. Hence, UEM has decided that it would be in a better
position to sell Renong's pledged assets. These include
Renong's stakes in listed companies such as Crest
Petroleum, Time Engineering, Park May, Faber Group,
CommerceAsset-Holding and Camerlin Group.  The pledged
unlisted assets are monorail company Putra and Prolink
Development, the owner of a 15,500-acre tract of land near
the Second Link connecting Malaysia and Singapore.

"Renong wants to wait for higher pricing instead of selling
them. But at UEM, the longer we wait the bigger the risk,"
he said.

At a yield of 9.4 per cent per annum, the value of the Plus
bonds will almost double to RM16 billion by 2006. Dr Ramli
said the debt overhang has dampened both Plus' valuation
and its listing prospects. At the same time, he said UEM
could not foreclose the pledged Renong assets as it could
only be done upon the expiry of the Plus bonds in 2006.
Dr Ramli added: "By 2006, people would say that UEM should
have taken the assets. You would have crucified me."

He said UEM wants to remove the shackle to enable the
flotation of Plus -- set to be the largest in the country.
And the listing could only take place after UEM's planned
disposal of the pledged Renong assets. The disposal
could take almost two years, he said. But analysts present
at the briefing were not totally convinced.

"UEM should not become Danaharta," said an analyst,
referring to the national agency in charge of mopping up
non-performing loans in the country.

They were still miffed that UEM will assume Renong's
responsibility to sell the assets while the latter will
become debt-free overnight. UEM has valued the Renong
assets, except Renong's 38 per cent stake in UEM, at RM6.7
billion, substantially higher than Renong's diminished
market capitalisation of RM2.8 billion yesterday. The
majority shareholders of UEM will abstain from voting on
the takeover of Renong's pledged assets. (Business Times
25-Nov-2000)


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

ASB GROUP: Interim receiver recommends rehab plan to SEC
--------------------------------------------------------
The interim receiver of the privately-owned ASB Group has
recommended to the Securities and Exchange Commission the
approval of the property company's rehabilitation plan
despite opposition from its creditor-banks.

"Between liquidation and rehabilitation, the latter
certainly ensures a more fair treatment to all the
creditors of the petitioners," ASB receiver Fortunato
Cruz said in a recommendation to the SEC.

Cruz said a liquidation of the company will mean 172
individual creditors with a combined exposure of 3.9
billion pesos and 317 contractors with an exposure of
58.116 million pesos will not be paid. Condominium units
pledged to 725 buyers will also not be sold, he added.

ASB owes banks, contractors and suppliers about 12.7
billion pesos. The company said its woes began in March
last year when creditors decided on the non-renewal and/or
withdrawal of loans. The company was also affected by the
slowdown in the property market.

ASB's biggest creditors include Metropolitan Bank and Trust
Co, which lent 1.35 billion pesos, the Philippine National
Bank which lent 167.21 million pesos, the Rizal Commercial
Banking Corp which lent 412 million pesos, and China
Banking Corp which lent 200 million pesos. Other creditor
banks are Prudential Bank, Union Bank of the Philippines,
United Coconut Planters Bank and Equitable PCI Bank.

Cruz said the asset for debt swaps and the release of
mortgaged assets suggested in the ASB rehabilitation plan
would allow the company to deliver the units pledged to
buyers, which would in turn generate revenue streams for
the company for paying off creditors.

"The continued business under rehabilitation, as against
the halt thereof under liquidation, will generate more
business opportunities in the future," Cruz said. (AFX News
Limited  27-Nov-2000)

PILIPINAS SHELL PETROL.: Refinery closure if no tariff hike
-----------------------------------------------------------
Pilipinas Shell Petroleum Corp said it may be forced to
shut down its baseoil refinery if Congress fails to pass a
bill imposing a 15 to 20 pct increase in the tariff on
baseoil products.  Shell operates the country's lone
baseoil refinery, in Rizal province, that produces 65,000
metric tonnes (MT) annually, or only half of its total
capacity of 130,000 MT.

"At the moment, the plant is operating on a cash-negative
basis and we cannot continue operating that. In fact, we
are selling the refinery to anyone who is interested,"
Shell vice president for corporate affairs Reynaldo Gamboa
said.

The proposed bills in Congress entail a 15 pct tariff on
baseoil products coming from the ASEAN region, and 20 pct
for all products coming from outside the region. Oil
industry players have opposed the bills, saying it would
raise prices of baseoil products being obtained by the
country's oil companies from Shell.  But Gamboa said Shell
was willing to have an arrangement to base its selling
price at the lower 3.0 pct tariff.

"What we want is for our baseoil product to be at par with
those that are coming in from other countries such as
Thailand and China, which have higher tariffs. We do not
want to close the refinery without reviewing all options in
order to make the refinery compete on an even playing field
with the other baseoil products in the region," he added.
(AFX News  24-Nov-2000)


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

CENTRAL PAPER INDUSTRY: Completes debt-restructuring plan
---------------------------------------------------------
Central Paper Industry has completed negotiations on its
debt-restructuring plan with Siam City Bank. Both parties
will formally sign a debt-restructuring agreement soon.

NATURAL PARK: Creditors approve rehabilitation plan
---------------------------------------------------
Creditors of Natural representing 68.71 percent of the
company's total debt have approved its rehabilitation plan.
The creditors met on Thursday, and the Central Bankruptcy
Court is expected to give a final ruling on the plan on
December 8.

PREMIER ENTERPRISE: Rehab plan lodged with Bankruptcy Court
-----------------------------------------------------------
Premier Enterprise confirmed that Premier Planner Co had
finished the company's rehabilitation plan and submitted it
to the Central Bankruptcy Court.

SOONG HUA SENG GROUP: Given debt deadline
-----------------------------------------
Creditors of commodities trading company Soon Hua Seng
Group (SHSG) have set tomorrow as the deadline for the
company to agree to a debt restructuring plan, or they will
pursue the case in the bankruptcy court, banking sources
said.

The creditors have also been seeking an explanation from
the company as to how a heavily indebted subsidiary, Soon
Hua Seng Rice Co, was able to lend Bt3 billion to another
subsidiary, Soon Hua Seng Marketing Co. The former's
liabilities have overshot its assets by about Bt4.7
billion.

SHSG, controlled by Kitti Damnoencharnvanichkul, is a big
shareholder of Advance Agro Plc (AA), a listed paper and
pulp joint venture company, operates an industrial estate
and also has a number of affiliates and subsidiaries. The
group has suffered heavily since the 1997 economic crisis
and was hit hard by the baht devaluation, which swelled its
debts to about Bt56 billion. Kitti has kept a low profile
since his business ran into trouble.

Thawatchai Thanakitworawat, managing director of Soon Hua
Seng Rice, said the restructuring plan involved a number of
affiliates and subsidiaries. So far restructuring has been
completed for 18 affiliates with combined debts of Bt12
billion under the guidance of the Corporate Debt
Restructuring Advisory Committee (CDRAC) but negotiations
for AA Plc, Soon Hua Seng Rice and Soon Hua Seng Co had yet
to be concluded. The three companies have combined debts of
about Bt38 billion.

Thawatchai said the three were negotiating with creditors
over the plans, the bulk of which had been largely accepted
by most creditors. "We believe  that restructuring will be
completed successfully, although we cannot predict the
exact timing," he added.

Thawatchai declined to disclose details of the plans.
However, one creditor source said they included seeking a
loan extension by five to 10 years and demands for a cut in
interest repayments.

"We believe that if the creditors approve the restruc-
turing, the firm will be able to repay its loans
accordingly as income from exports alone is totaling about
Bt26 billion a year on average," Thawatchai said.

Bangkok Metropolitan Bank (BMB), one of Soon Hun Seng
Rice's creditors, filed a bankruptcy suit on August 31. The
company has failed to settle a debt of Bt388.06 million
incurred through the sale of five discounted promissory
notes via the bank. BMB said in the lawsuit that since the
notes matured in April 1998, it had received no payment
from the company.

At the first court hearing on October 27, the business did
not seek to contest the bankruptcy suit but sought another
60 days, until December 29, to arrange an out-of-court
settlement. Pattanachai Keerapat, BMB's legal adviser, said
that the bank was still in negotiations with Soon Hua Seng
Rice but declined to disclose details. Soon Hua Seng Rice
reported to the Department of Trade Registration a net
loss of Bt5.22 billion for 1999.

Meanwhile the company's auditors, Virach & Associates,
noted that it had lent Bt3.03 billion to a subsidiary
without asset guarantees. The auditors concluded, as a
result, that the company's financial statements had been
"undermined." SHSG, the holding company of the group,
announced net losses of Bt 2.24 billion and accumulated
losses of Bt 5.73 billion in 1998 (the company delayed
announcing financial results for 1999).

The auditors, PriceWaterhouseCoopers, noted SHSG was the
parent company and was the guarantor of its subsidiaries'
loans. "The company's revenue is dependent on the financial
statements of its affiliates," PriceWaterhouseCoopers said
in its report.

Other companies in the group to post a loss last year
included Soon Hua Seng Holding, which was in the red by
Bt2.7 billion, and Damnoencharnvanichkul Holding Co, which
reported a net loss of about Bt512 million for 1999.

Meanwhile, Soon Hua Seng Marketing, a subsidiary of Soon
Hua Seng Rice, recorded a net profit of Bt1.37 million last
year but posted accumulated losses of Bt7.87 million. A
source representing the creditors said most of the group's
debts resulted from "packing credit" (a form of trade
finance). He added that had the company followed the
lending conditions, there would have been no problems
but the money was spent for purposes other than intended.

The source said that was why the group had incurred losses
and high debts since the economic crisis of 1997.
Pridiyathorn Devakula, president of the Export-Import Bank
of Thailand (EXIM) - another of the group's major lenders,
said that after restructuring was completed at AA, the bank
would be willing to discuss plans with the parent company.
He added that creditors would sign contracts this week
facilitating AA's debt restructuring.

Pridiyathorn said that after the parent, AA was the second
largest group company that required restructuring. He added
that AA's task was less problematic because the pulp and
paper company had sufficient income, mainly due to the rise
in paper prices. The bank chief said that the company had
also benefited from the depreciation of the baht, which had
improved its export competitiveness. EXIM's president added
that AA had called for an extension of loans from creditors
and requested an injection of working capital. (The Nation
27-Nov-2000)

THAI DURABLE TEXTILE: Rehab pact with Bangkok Bank soon
-------------------------------------------------------
Thai Durable Textile expects to sign a definitive
restructuring agreement with creditor Bangkok Bank by the
end of December, following the resolution of labor
problems. The company confirmed that yarn output had fallen
by 70 percent as a result of last weekend's fire at its No.
2 spinning mill.

THAI ENGINE MANUFACTURING : Records Bt363M Q3 loss
--------------------------------------------------
Thai Engine Manufacturing recorded a consolidated net loss
of Bt362.79 million for the third quarter of this year,
down from a Bt297.22 million loss for the same period last
year. For the first nine months of this year, TEM posted a
net loss of Bt3.56 billion, likewise up from a Bt988.26
million loss for the same period the prior year. The SET
posted an "SP" (suspension) over its securities until the
company offered more details of its results. The company is
further examining its figures and waiting for the Central
Bankruptcy Court to consider and approve its rehabilitation
plan.

THAI MODERN PLASTIC INDUSTRY : Posts Bt1 M Q3 loss
--------------------------------------------------
Thai Modern Plastic Industry recorded a net loss for its
third-quarter operations of Bt11.60 million. The loss was
down by 71.48 percent from its loss for the same period
last year, a fact which the company attributes to having no
interest expenses in the quarter and a  Bt28.18 million
decline in operating and administration costs.

THAI PETROCHEM.INDUS.: Creditors approve rehab plan
---------------------------------------------------
Creditors of Thai Petrochemical Industry (TPI), the
country's largest corporate debtor, voted Monday to approve
a plan to restructure the company's debt mountain, a
creditor source said.

The vote covered 96.06 percent of the company's total
obligations of 142 billion baht (3.3 billion US), the
source told AFX, an AFP-owned financial newswire. Shares in
the company, whose case is seen as a barometer of efforts
to reform the Thai economy after the 1997 financial crisis,
rebounded on the news, rising 0.30 baht to 4.20 in active
trade.

About 2,000 disgruntled employees of the petrochemical
refiner staged a rally outside the Legal Execution
Department where the vote was held, in an unsuccessful
attempt to force the decision to be postponed. They
successfully derailed an earlier vote scheduled to be held
on November 16, with a large and unruly protest which
government officials feared might turn violent.

On Monday a large contingent of riot police were on hand
and the protest passed off peacefully. TPI chief financial
officer Wachiraenthu Promprasert said workers' unions
would meet with the company's rehabilitation managers,
Effective Planners, Tuesday to discuss future employment in
the restructured conglomerate.

If the proposals are rejected at the meeting, the employees
may strike immediately, closing down the company's main
refinery with a potential loss of 300 million baht a day,
Wachiraenthu warned. The employees had demanded creditors
guarantee them protection against job losses, and promise
not to sell off the company's non-core business. They also
wanted the current management to stay in place.

TPI was ruled insolvent by Thailand's Central Bankruptcy
Court in March but the company's management was allowed to
remain in control until creditors agreed on a
rehabilitation coordinator. The creditors then rejected an
attempt by TPI bosses to continue to oversee their own
recovery and voted to appoint a professional rehabilitation
planner to sort through the petrochemical firm's debt.

The TPI case has been keenly watched by foreign investors
courted by Thailand as the country battles back from
economic crisis and works through billions of dollars in
debt stifling the corporate sector. It is seen as a test of
amended bankruptcy laws introduced in a bid to flush out
the vast sums owed by Thai firms. (Agence France Presse
27-Nov-2000)

UNIVERSAL FOOD: Post Q3 loss
----------------------------
Universal Food recorded a consolidated loss of 17.7 million
baht for the third quarter of this financial year, a
turnaround from a 1.1 million baht profit for the same
period last year. The company's loss for the first nine
months totaled 53.2 million baht, up from a 19.8 million
baht loss for that time period last year. In other new, the
company reported that Supiya Intrasut and Wongwatana
Methaiwala had resigned as directors.


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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