/raid1/www/Hosts/bankrupt/TCRAP_Public/991025.MBX    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

            Monday, October 25, 1999, Vol. 2, No. 207

                            Headlines


* C H I N A  &  H O N G  K O N G *

ADMART: Losses expected to continue
AWT HOLDINGS: Reaches standstill agreement with creditor
DANIEL ENTERPRISES INVESTMENT: Facing winding up petition
GOODWILL BUILDING MATERIALS: Facing winding up petition
GUANGDONG INT'L TRUST AND INVEST.: More money for creditors
GUANGDONG INT'L TRUST AND INVEST.: Creditor recovery delay
KING PACIFIC INT'L. HOLDINGS: Posts annual loss
LIGHT SPORT LIMITED: Facing winding up petition
PROTEC ENGINEERING: Facing winding up petition
PURPLE LIGHT TRADING: Facing winding up petition
SHUN SHING WEAVING COMPANY: Facing winding up petition
SINOGEM DEVELOPMENT: Facing winding up petition
WELLEAD CONSTRUC.&ENGINEERING: Facing winding up petition


* I N D O N E S I A *

PT ENSEVAL PUTERA MEGATRADING: Restructure deal near


* J A P A N *

MATSUZAKAYA: Share price falls on declining sales
VICTOR CO.: Posts half-year loss


* K O R E A *

DAEWOO ELECTRONICS: Debt workout details near
DAEWOO HEAVY INDUSTRIES: Debt workout details near
DONG-AH INSURANCE: Kumho considering takeover
HANVIT BANK: FSS disciplines 113 current and ex-officials
HYUNDAI GROUP: To launch roadshow to reassure financiers
SAMSUNG MOTORS: Hyundai rejects takeover


* M A L A Y S I A *

FABER GROUP: November meeting with creditors on rehab
PERLIS PLANTATIONS: Working on workout plan
UNICO HOLDINGS: Holding roadshow for shareholders


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

MONDRAGON INT'L PHILIPPINES: SEC halts creditor takeover


* T H A I L A N D *

BANK OF THAILAND: 117 NPLs restructured
KASET THAI SUGAR CO.: Court postpones fateful decision
NAKHON SAWAN INDUSTRY CO.: Court postpones fateful decision
NOBLE DEVELOPMENT: Asset trade part of restructuring
SAHAVIRAYA STEEL: Expects to be able to convert debt
SOGO: To increase lease tenants as part of restructure
THAI EKALAK SUGAR CO.: Court postpones fateful decision
THAI IDENTITY GROUP: Court postpones bankruptcy decision
THAI NAM PLASTICS: Signs debt rehab agreement
THAI OIL CO.: Creditors agree to restructure framework


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

ADMART: Losses expected to continue                        
-----------------------------------                          
Jimmy Lai Chee-ying's direct-marketing venture adM@rt,
expects to lose about $720 million before it starts
generating a profit.

Since June, adM@rt has sold and delivered discounted
groceries, mobile phones and computers, which provoked
retaliatory price cutting by supermarket chains Wellcome
and ParknShop.  Hit by setbacks that included supply
breakdowns and the discovery it had sold fake wine, adM@rt
was losing about $30 million monthly, vice-chairman Andrew
Chow On-kiu said.

"This is no surprise. Apple Daily lost money in the first
couple of years and now it is profitable.  We have been
expecting adM@rt to lose about [$30 million] a month in its
first two years of operations."

He said adM@rt was facing "a lot of problems", some of them
"insoluble", but the board had no intention of folding it.
"Committing mistakes is a problem," he said. "We learn on
every mistake."  (South China Morning Post  22-Oct-1999)

AWT HOLDINGS: Reaches standstill agreement with creditor
--------------------------------------------------------
Cash-strapped freight forwarder AWT Holdings has reached a
conditional standstill arrangement with International Bank
of Asia (IBA) paving the way for the bank to withdraw its
winding-up petition against AWT.

The arrangement involves the payment of cash, an issue of
shares and a series of convertible bonds to IBA, and
certain arrangements for the sale of a property of its
wholly-owned subsidiary Asia Million Development.  Asia
Million is currently held by IBA as collateral for the
loans.

According to a statement to the Stock Exchange of Hong Kong
(SEHK), AWT managing director David Leung said the group
owed IBA a total of $19.57 million as at 30 September which
is secured by a mortgage over 36 car-parking spaces at
Whampoa Garden, valued at $19 million as at 31 March.
The group would settle $5.7 million of the total by issuing
convertible bonds to IBA and $13.3 million from the
proceeds from selling the car-parking spaces.

Of the $572,289 shortfall, half would be waived by IBA, 40
per cent or $228,916 by the issue of shares, and the
remaining 10 per cent would be paid in cash.  Meanwhile,
the group announced that three out of five creditor banks
had given preliminary consent to the company's
restructuring plan. AWT is finalising details of the
restructuring plan and the group is negotiating with a
fourth bank.  AWT shares rose yesterday by 23.14 per cent
to finish at $0.149.  (Hong Kong Standard  22-Oct-1999)

DANIEL ENTERPRISES INVESTMENT: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
November 10 at 9:30 a.m. on the petition of Ng Shuet Wai
for the winding up of Daniel Enterprises (Investment)
Limited. A notice of legal appearance must be filed on or
before November 9.

GOODWILL BUILDING MATERIALS: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
December 15 at 11 a.m. on the petition Fook Loong (Hong
Kong) Limited for the winding up of Goodwill Building
Materials Limited. A notice of legal appearance must be
filed on or before December 14.

GUANGDONG INT'L TRUST AND INVEST.: More money for creditors
-----------------------------------------------------------
Liquidators of the bankrupt Guangdong International Trust
and Investment Corp (Gitic) have identified more than 400
eligible creditors and will pay them more than they were
promised six months ago. The eligible creditors can collect
up to 32 per cent of all debts owed them, double the 16.8
per cent level that was expected last April.

Guangdong government officials, however, announced that
only one per cent of the promised 7.69 billion yuan
(HK$7.21 billion) recoverable assets had been collected.
Some bankers expressed disappointment at this announcement.
Gitic liquidators turned down 120 applications claiming a
combined 5.9 billion yuan in unpaid loans due to lack of
supporting evidence, liquidator KPMG Peat Marwick's latest
report said.

Liquidators have approved 24.3 billion yuan in claims
against Gitic, the report said.  By doing so, Gitic will
have effectively reduced its entire liability to 24.3
billion yuan from 38.8 billion yuan.  Eligible creditors
would not get the full amount but only a combined 7.69
billion yuan which liquidators expected to collect from
debtors and from the sale of Gitic assets.

So far, liquidators have collected only 98 million yuan of
the recoverable assets.  During the second creditors
meeting held yesterday, a panel of 19 representatives from
the Guangdong Government, liquidators and legal advisers
briefed 263 overseas and domestic creditors.

Gitic, the fund-raising arm of the Guangdong Government,
and its four subsidiaries were declared bankrupt in January
and the Guangdong High Court took over management of the
assets.  At the first creditors meeting in April, about 539
creditors were told only 6.4 billion yuan, or 16 per cent,
of assets could be recovered.

"Sure, we are upset with the progress of the liquidation so
far," said one creditor coming out of yesterday's briefing.
"It involves so many legal disputes and it is also
difficult to find the right buyers for the assets."

KPMG Peat Marwick Huazhen partner Louie Choi Ting-ki told
creditors at the meeting that they would receive the first
batch of payment after liquidators collected the first five
per cent of the approved amount of claims _ equivalent to
1.2 billion yuan.  The first batch of payment is expected
to be released in the next 12 months, according to Mr Choi.

The deputy head of the High Court of Guangdong Province, Li
Qi, said staff from the Guangdong Provincial Court has been
travelling to Liaoning, Shandong, Beijing and Shanghai to
collect debts since late September.  Progress on collecting
debts was slow because debtors lacked funds, said Mr Choi.
Within the next two months, liquidators will collect
another 296 million yuan in debts from a debtor who
operates a domestic highway.

Some creditors expressed concern over the exchange rate and
interest rate impact on claims.  Guangdong officials said
the exchange rate would be set as that on 16 January when
Gitic was declared bankrupt.  (Hong Kong Standard  22-Oct-
1999)

GUANGDONG INT'L TRUST AND INVEST.: Creditor recovery delay
----------------------------------------------------------
Creditors to bankrupt Guangdong International Trust and
Investment Corp (Gitic) have been told illegal and improper
behaviour by management is likely to complicate the
recovery of company assets for many months.

At the second creditors' meeting held for the Guangdong
conglomerate, Gitic's liquidation committee yesterday
reported the company's business operations had "seriously
contravened" laws and regulations.  However, the committee
also revised downwards its estimates of company liabilities
and increased estimates of recoverable assets, raising the
prospects of higher recovery rates for verified company
creditors.

Gitic was declared bankrupt in January in the largest
corporate failure in mainland history.  The committee
yesterday put recoverable assets at 7.68 billion yuan
(about HK$7.16 billion), following staff and salary
payments, representing an increase of 1.18 billion yuan
over estimates provided at the first creditors' meeting in
April.  The committee also provisionally reported total
company liabilities at 24.33 billion yuan, representing a
dramatic decline of 14.44 billion yuan from April's
estimates of 38.77 billion yuan.

The primary reason behind the change was the liquidation
committee's removal and rejection of dozens of contingent
guarantees offered by Gitic, primarily in the form of
comfort letters.   The committee warned that many of its
rejections were now being challenged and, in the end, the
amounts admitted might change substantially.  Objections
had been raised to 40 complete and partial rejections,
involving 3.73 billion yuan from the 120 claims concerning
5.89 billion yuan, that the liquidation committee rejected.

Also likely to increase Gitic's admitted liabilities is the
existence of 4.35 billion yuan worth of unspecified claims
that have not yet been processed and were not included in
yesterday's liquidation committee report.  Louie Choi, a
partner with Gitic liquidation advisers KPMG Peat Marwick-
Huazhen, said the liquidation committee intended to dispose
of "good" assets within a year and complete the company's
bankruptcy within two years.

Asset recovery work is likely to be complicated by Gitic's
own sub-standard and often illegal business practices,
which extended from irregular and illegal loan agreements
to undocumented investments.  Although the committee said
it would seek to resolve asset recovery disputes through
negotiation, it also admitted that legal disputes were
likely.

The liquidation committee was particularly critical of
Gitic's business relationships with its wholly owned
subsidiaries, where "the allocation, re-allocation or
transfer of investment projects between the group companies
almost invariably failed to comply with the legal
formalities".  

Without proper legal documentation for many of Gitic's
inter-group loans and investments, the committee estimated
it would recover only 2.95 billion yuan from book assets of
7.31 billion yuan.  Many of the 263 creditors attending the
meeting, while expressing satisfaction with the committee's
progress, were critical of the decision-making surrounding
the bankruptcy process. Of particular concern was the
handling of billions of dollars worth of foreign lending to
Gitic that was not registered with the State Administration
of Foreign Exchange (SAFE), as required by law.

The committee announced the full principal of non-SAFE
registered lending would be verified.  However, loan
interest rate payments would be assessed at below bank
rates.

"I see attempts to be transparent but it doesn't measure up
to the kinds of standards we in the West are used to
seeing," said Thomas Bottini, a lawyer with Armstrong
Teasdale, a member of the liquidation chairmanship
committee.

Mr Choi said disbursement of recovered Gitic property would
start once 5 per cent of total assets were recovered.  That
is expected to take place around the time of the third
creditors' meeting, forecast to take place early next year.  
At present, the liquidation committee has recovered 98.7
million yuan.  However, Mr Choi said an imminent settlement
with Hopewell China over a guarantee dispute regarding the
Guangzhou-Shenzhen-Zhuhai Superhighway would provide an
additional 296 million yuan to bankruptcy coffers in coming
weeks.  (South China Morning Post  23-Oct-1999)

KING PACIFIC INT'L. HOLDINGS: Posts annual loss
-----------------------------------------------
Restaurant operator and construction concern King Pacific
International Holdings has posted a net loss of $200.84M
for the year ended March 31, against a profit of $10.81M
the preceding year.  The loss per share was 30.04 cents
against earnings per share of 1.76 cents last time.  No
dividend was declared.  An exceptional loss of $132.88M was
recorded.  This included a $62.47M provision against
associated companies, other investments and non-recovery of
related loans receivable.

LIGHT SPORT LIMITED: Facing winding up petition
-----------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
December 22 at 9:30 a.m. on the petition of Chiu Kam Wai  
for the winding up of Light Sport Limited. A notice of
legal appearance must be filed on or before December 21.

PROTEC ENGINEERING: Facing winding up petition
----------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
December 15 at 9:30 a.m. on the petition of Indo-China
Trading Company Limited for the winding up of Protec
Engineering Limited. A notice of legal appearance must be
filed on or before December 14.

PURPLE LIGHT TRADING: Facing winding up petition
------------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
November 24 at 9:30 a.m. on the petition of Chan Kwai Ying
for the winding up of Purple Light Trading Limited. A
notice of legal appearance must be filed on or before
November 23.

SHUN SHING WEAVING COMPANY: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
December 15 at 9:30 a.m. on the petition of Lam Shek Hei
for the winding up of Shun Shing Weaving Company Limited. A
notice of legal appearance must be filed on or before
December 14.

SINOGEM DEVELOPMENT: Facing winding up petition
-----------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
December 1 at 9:30 a.m. on the petition of Law Shui Bing
for the winding up of Sinogem Development Limited. A notice
of legal appearance must be filed on or before November 30

WELLEAD CONSTRUC.&ENGINEERING: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR has scheduled a hearing for
December 22 at 11 a.m. on the petition of Zen Pacific Civil
Contractors Limited for the winding up of Wellead
Construction & Engineering Company Limited. A notice of
legal appearance must be filed on or before December 21.


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

PT ENSEVAL PUTERA MEGATRADING: Restructure deal near
----------------------------------------------------
Retailing company PT Enseval Putera Megatrading plans to
sign an agreement on debt restructuring worth $ US56
million in November 1999 arranged by the Commonwealth Bank
of Australia.

PT Enseval's finance director Djamarwie said the company
had been given a five year roll-over for $ US25 milllion of
the debt. The rest would be settled through refinancing
system. Under the agreement, the company would start
servicing the debt with an amount of US$ 9 million this
year, to be followed with an instalment of US$ 1.25 million
each quarter next year.  (Asia Pulse  21-Oct-1999)


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

MATSUZAKAYA: Share price falls on declining sales
-------------------------------------------------
Matsuzakaya shares fell 2.9% to their lowest this decade
after the Japanese department store operator said declining
sales and charges to cut jobs and close money-losing
subsidiaries would push it into the red for the year to
February.  

The Nagoya-based department store operator fell 12 yen to
408.  About 85,000 shares changed hands, surpassing by 40%
the full-day average during the past six months.  
Matsuzakaya said it would lose 11.4B yen in the year
through February, after a 1.9B yen profit last year.  
Matsuzakaya plans to cut 300 jobs, or 5.4% of its 5,530
workforce, through early retirement by February at a cost
of 6.8B yen.

VICTOR CO.: Posts half-year loss
--------------------------------
Victor Co. of Japan (JVC) yesterday announced losses in the
six months to September due to weak sales at home and the
yen's rise against the dollar.  JVC suffered a parent
company level net loss of 7B yen in the period in a sharp
reversal of a year-earlier profit of 1.3B yen.  Pretax loss
came to 3.9B yen against a profit of 1.6B yen a year
earlier, with sales dropping 8.4% to 275B yen.


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

DAEWOO ELECTRONICS: Debt workout details near
DAEWOO HEAVY INDUSTRIES: Debt workout details near
--------------------------------------------------
Details of a debt workout program for Daewoo Electronics
(KSE: 07410) would take shape by the weekend, an official
of Hanvit Bank (00030) said Wednsday.

The group's main creditor bank will receive an interim
report from an accounting firm on assets and debts of the
electronics company this weekend.  The workout will include
debt conversion into equity investment, rate cuts and
rescheduling, the official said.

Hanvit will weigh various debt workout solutions and decide
after consultations with other creditor banks towards the
end of next week.  According to the report, the assets of
Daewoo Electronics' affiliate Daewoo Electronics Component
(09320) totaled 366 billion won, while debts amounted to
292.6 billion won for a net value of 72.4 billion won. The
company's net value is 10 percent less than what the parts
producer initially reported to its creditor banks, while
debts exceeded assets by 20 percent.

Bank workout experts say a company can fare well with a
little help in debt rescheduling if assets are greater than
debts.  Meanwhile, the Korea Development Bank, the main
creditor of Daewoo Heavy Industries (00200), said it will
determine a workout for the Daewoo affiliate after dividing
it into machinery, shipping and others units by Oct. 29.  
(Asia Pulse  20-Oct-1999)

DONG-AH INSURANCE: Kumho considering takeover
---------------------------------------------
Kumho business group, better known for its transportation
unit, Asiana, announced Friday that it is reviewing the
possibility of taking over the ailing Dong-Ah Life
Insurance, explaining that the Financial Supervisory
Commission (FSC) had earlier contacted the group to verify
its interest in the firm.

Kumho had joined hands with Hartford, a U.S. life insurer,
in taking over Dongah, but the conglomerate is now seeking
to acquire the ailing insurance firm single-handedly, as
Hartford's negotiations with the Financial Supervisory
Commission (FSC) fell apart, they said.  Dong-ah Life
Insurance Co. is one of the six ailing life insurers put up
for sale to domestic and foreign investors.

Officials at Kumho said, however, that its ongoing study to
take over the insurance firm is still at a very early
stage, and the final decision has yet to be made. If
acquired, Dongah will then be merged with Kumho Life
Insurance Co., the conglomerate's insurance unit, an
official said.

As of the end of July this year, Dong-Ah's liabilities were
in excess of its assets by W897.4 billion. In the fiscal
year 1998, Dongah's premium income stood at 1.37 trillion
won, the sixth largest among local life insurers.

The government had earlier announced plans to inject public
funds in a measure to normalize the nation's ailing life
insurance firms.

Industry watchers estimated that the takeover price of
Dongah may range from 180 billion won to 270 billion won,
or 20 percent to 30 percent of Dongah's negative net worth.
Meanwhile, the Financial Supervisory Commission said
yesterday it will soon declare three other troubled life
insurance firms insolvent. The three life insurers -
Kookmin, Doowon and Pacific - will be issued orders for
complete capital reduction by early next month.  (Digital
Chosunilbo  22-Oct-1999, Korea Herald  23-Oct-1999)

HANVIT BANK: FSS disciplines 113 current and ex-officials
---------------------------------------------------------
The Financial Supervisory Service (FSS) disciplined 113
former and incumbent officials of Hanvit Bank yesterday,
holding them responsible for poor management of the bank.

The officials include two former presidents of Commercial
Bank of Korea (CBK) - Chung Ji-tae and Bai Chan-byung -
former Hanil Bank President Lee Kwan-woo and Shin Dong-
hyock, former acting president of Hanil.  The nation's
largest bank, Hanvit is a consolidation of CBK and Hanil,
which merged earlier this year under a government-led
overhaul of the debt-laden banking sector.

In a special inspection of Hanvit, the watchdog found the
113 bank officials to have caused losses of 442.5 billion
won ($367 million) on the bank by extending loans to 41
bad-credit corporate borrowers, an FSS official said.
In addition, they loaned out 45.5 billion won to four
companies, including Haitai Confectionery Co., in excess of
credit limits and extended 18.4 billion won to six other
corporate borrowers without following due loan-screening
procedures, the regulator said.

Under the disciplinary measures, Chung and Lee will be
barred from serving executive posts at domestic financial
institutions for the next three years.  

The financial watchdog also issued precautionary warnings
to Bai and Shin who is now president of KorAm Bank. The
financial watchdog also took disciplinary action against 17
former and incumbent officials at the Export-Import Bank of
Korea (Ex-Im Bank), including its former President, Moon
Hun-sang. The FSS said Moon and other Ex-Im Bank officials
were found to have incurred a bad loan of 277.9 billion won
to the state-run bank by making illegal loans to 45
overseas subsidiaries of domestic companies and five other
domestic corporate borrowers.  (Korea Herald  23-Oct-1999)

HYUNDAI GROUP: To launch roadshow to reassure financiers
--------------------------------------------------------
South Korea's largest conglomerate, the Hyundai Group, will
launch a global investor relations roadshow next week aimed
at reassuring the international financial community about
its 69 trillion won (US$57.3bil) debt.

"We plan to inform foreign investors that we are serious
about restructuring," an executive in charge of planning
the roadshow said yesterday.  "We also hope to ease
concerns of possible financial trouble following the crisis
at Daewoo. In the long run, we hope to raise the
credibility of the group."

The roadshow, which begins in Hong Kong next Monday, will
confront brewing concerns about the Hyundai group's
financial health in the wake of the near bankruptcy of
Daewoo group, South Korea's second largest conglomerate.
It moves to Singapore on Oct 27, London on Oct 29,
Frankfurt on Nov 1, New York on Nov 3 and Boston on Nov 5.
Organised by Hyundai's management strategy team, Merrill
Lynch of the US and Commerzbank AG of Germany, the roadshow
will target global institutional investors, banks,
securities firms, government officials and the media.
Analysts said Hyundai was making the right move in dealing
with rumours about its cash flow situation.

"I think it's good on their part to actually go out and
promote and defend themselves against whatever criticisms
the market has on them," said Bill Hunsaker, head of
research at ING-Baring Securities.  "They don't want panic
setting in. There are already a lot of banks redeeming
loans with Hyundai," he said.

South Korean Finance Minister Kang Bong-kyun said last week
Hyundai was facing an unfavourable lending environment.
"Hyundai's debt-to-equity ratio is very high.

"In truth, the conditions for the group to receive foreign
loans are more difficult than for other firms," Kang said.
Foreign bankers are nervous about the astronomical debt
levels of Korean conglomerates. Memories linger of the
"Asian Contagion" crisis of 1997, which saw a stampede of
foreign money out of the region.

The combined 126 trillion won in debt of South Korea's two
biggest conglomerates far exceeds the foreign debt of
Thailand.  Hyundai had cut its debt-to-equity ratio to 341%
by end-June from 449.3% at end-1998. But the government
wants firms to cut the ratio to 200% by the end of 1999.
(Reuters, Star Online  22-Oct-1999)

SAMSUNG MOTORS: Hyundai rejects takeover
----------------------------------------
The Hyundai Group is not interested in taking over the
insolvent Samsung Motors, the group's chief restructuring
official said yesterday.

"Hyundai will not participate in an international auction
for Samsung Motors," said Park Se-yong, head of the group's
restructuring office.

Park said Hyundai will reduce the number of its affiliates
by 20 by the end of the year, with 14 of them to be sold
off or spun off by early next month.  Park added that the
sale of Aluminum of Korea will be completed in 2-3 weeks,
while Hyundai Pipe and Hyundai Elevator will be sold before
the end of the year. He said Hyundai Pipe may be sold to a
domestic firm.  (Korea Herald  23-Oct-1999)


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

FABER GROUP: November meeting with creditors on rehab
-----------------------------------------------------
Group, a Malaysian hotel, property and health-care services
company, plans to meet its creditors on Nov 22 to discuss a
proposed debt-restructuring scheme.  The meetings will
involve its various creditors, and its subsidiaries Faber
Hotels Holdings and Subang Jaya Hotel Development, it said
yesterday.  (Reuters, Straits Times  22-Oct-1999)

PERLIS PLANTATIONS: Working on workout plan
-------------------------------------------
Perlis Plantations Bhd (PPB) is planning a group
restructuring involving the rationalisation of its various
subsidiaries.  

Group chairman Kuok Khoon Ean said details of the plans
were expected to be finalised by the end of next month or
early December.  He said the exercise would involve mainly
PPB's non-listed companies and was aimed at untying the
crossholdings of its various units.

"Currently there are too many crossholdings within the
group. We are trying to untie that, to simplify our
corporate structure," Kuok told reporters after the
company's EGM in Kuala Lumpur yesterday.

He added that PPB was expected to perform better in the
second half of this year compared with the first half,
although it was expecting the contribution from its
plantation division to be lower.  The company reported a
20% growth in group pre-tax profit to RM200.7mil for the
six months ended June 30, from RM167.3mil previously. Group
turnover was also higher at RM3.3bil during the period.
Kuok said contribution from its plantation division fell in
the first half due to lower oil palm prices, but this was
offset by higher earnings from the food industries division
owing to a stable ringgit.

He expects the food division to remain the group's main
income earner this year followed by the plantation and
environmental engineering divisions, Kuok said.  Earlier,
PPB's shareholders approved the disposal of the company's
114.8 million shares or 26.1% stake in Shangri-La Hotels
(M) Bhd to Shangri-La Asia Ltd, in exchange for a 1.7%
stake or 39.7 million shares in the latter.

Kuok said the disposal was purely a business decision,
which took into account the problem of oversupply of hotel
rooms in the country.  He added that PPB also intended to
dispose of the remaining 1.7% stake in Shangri-La Asia
within a year if market conditions improve.  Kuok said
proceeds from the sale would then be used to expand the
group's core businesses, with more emphasis on its
environmental engineering division.  (Star Online  23-Oct-
1999)

UNICO HOLDINGS: Holding roadshow for shareholders
-------------------------------------------------
In an attempt to resolve a dispute over its proposed
restructuring and listing exercise, Unico Holdings Bhd has
decided to hold a roadshow to clarify the situation to its
24,000 shareholders.

The decision to hold the roadshow was made at an emergency
meeting of the company's board in Kuala Lumpur yesterday.
After the meeting, Unico chairman Datuk Lim Guan Teik
released a letter addressed to shareholders to the press,
but declined to make any comments.  In the letter, Lim, who
has the full backing of the board to handle shareholders'
grievances, said the directors would be arranging to meet
Unico's shareholders "in person in the respective states as
soon as possible."

Lim hoped the shareholders would be able to get "first-hand
information" from the meetings, details of which would be
published in the newspapers.  He said in the past 15 years,
the transaction price of Unico shares had been between
RM1.10 and RM1.50 each.  Lim added that the announcement of
the proposed listing of Unico-Desa Plantations Bhd had in
fact resulted in the value of Unico's shares increasing to
between RM1.80 and RM2 per share, adding that shareholders
are advised not to dispose of their shares.

He said Unico's corporate vision would include the listing
of profitable subsidiaries and a bonus issue after its
successful listing.

"We will continue to support high technology operations in
line with our nation's aspirations and would meet the
expectation of our shareholders," he added in the letter.

Lim said Unico had traditionally made full disclosure on
significant matters to its shareholders and had had its
audits and reports sanctioned and certified by an
international firm of independent auditors.  He added that
Unico had no difficulty in complying with any new
disclosure standards required by the authorities and would
not hesitate to appoint an audit committee for Unico
although this was not required by law.  The roadshow would
probably take off in Johor Baru.  (Star Online  22-Oct-
1999)


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

MONDRAGON INT'L PHILIPPINES: SEC halts creditor takeover
--------------------------------------------------------
Businessman Jose Antonio Gonzalez scored a big win in his
fight to retain control of Mondragon International
Philippines Inc. when the Securities and Exchange
Commission stopped the company's creditor banks from taking
over the company.

In an order dated Oct. 20, a three-man hearing panel of the
commission said it found enough bases to grant Gonzalez
petition against the entry of representatives in
Mondragon's board of members elected by its creditors.
The panel said it barred the representatives of the bank
creditors to prevent confusion.

"Certainly, this [takeover by creditors] poses danger to
Mondragon's stock valuation and the interest of the
investing public," the panel said.

Gonzalez' legal battle began when Asian Bank Corp., Far
East Bank and Trust Co., and United Planters Bank met on
Sept. 20 and elected eight representatives to the nine-man
board of Mondragon.  Gonzalez claimed the meeting was
illegal because the banks had been notified of its
postponement to Nov. 15.

The banks claimed otherwise. They said the 369.44 million
shares pledged to them by Gonzalez as collateral for
Mondragon's $22-million loan entitled them to representa-
tion in the company's board.  An agreement with Mondragon
dated June 30, 1997 gave the banks voting rights over the
pledged shares equivalent to 54.21 percent of Mondragon's
outstanding capital. Gonzalez owns the shares.

Mondragon Leisure & Resort Corp., a wholly owned unit
inside the Mimosa Leisure Estate at the Clark Special
Economic Zone, used the loan.  (Manila Times  22-Oct-1999)


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

BANK OF THAILAND: 117 NPLs restructured
---------------------------------------
Non-performing loans of 316.1 billion baht to 117 major
borrowers have been restructured to date, the Bank of
Thailand said yesterday.

The central bank's Corporate Debt Restructuring Advisory
Committee has reviewed 702 cases involving 1.5 trillion
baht since it was established last year.  Restructuring
contracts for 70 borrowers with loans of 178.54 billion
baht had been signed, and agreements in another 47 cases
involving 137.5 billion were being drafted, it said.
Another 2,261 smaller debt cases are being restructured
through the committee, with outstanding loans of 44 billion
baht. Completed cases total 330 with loans of 3.5 billion
baht.  (Bangkok Post  23-Oct-1999)

KASET THAI SUGAR CO.: Court postpones fateful decision
NAKHON SAWAN INDUSTRY CO.: Court postpones fateful decision
THAI EKALAK SUGAR CO.: Court postpones fateful decision
-----------------------------------------------------------
The Central Bankruptcy Court yesterday postponed a ruling
on the fate of three Nakhon Sawan-based sugar mills to next
Friday, saying it needed more time to study several
thousand pages of documents submitted by both creditors and
shareholders.

The court said it needed no more personal testimony as the
documents were enough for it to make a ruling. The mills
being sued for bankruptcy by their creditors are Kaset Thai
Sugar Co, Thai Ekalak Sugar Co and Nakhon Sawan Industry
Co.

Last month, their business rehabilitation plans, prepared
by South Sathorn Planner Co on behalf of major creditors,
were rejected by a creditors' meeting. Small creditors,
mainly sugarcane farmers, voted en masse against a proposal
to write down the three mills' shares to one satang each.
Small creditors claimed the plan would allow large
creditors to take over the businesses, while leaving
farmers with nothing.

With the rehabilitation plans rejected, the court must
decide whether to declare the companies bankrupt as
requested by the major creditors.  A declaration of
bankruptcy would result in the companies' assets being
foreclosed and auctioned, with proceeds shared among the
creditors.  But if the court rules that the mills are not
yet insolvent, they would be able to continue operating,
and major creditors would have to enter new negotiations.

Alternatively, the creditors could file lawsuits with the
Civil Court to force them to repay debts-a process that
could take years.  The three mills owe their creditors a
total of about 20 billion baht. Major creditors include
Bangkok Bank, Thai Farmers Bank, Bank of Ayudhaya, Krung
Thai Bank and BankThai.

Prior to the creditors' meetings last month, some small
shareholders and creditors had filed criminal and civil
suits against M.R. Pridiyathorn Devakula, president of the
Export Import Bank, and executives of South Sathorn
Planner.  M.R. Pridiyathorn chairs a committee to supervise
debt restructuring of all sugar mills nationwide.

The suits alleged that M.R. Pridiyathorn and South Sathorn
Planner had falsified figures of the three mills' assets to
mislead people into believing that the businesses were
insolvent.  In March this year, Michael Wansley, an
Australian auditor with South Sathorn Planner was shot dead
in Nakhon Sawan. Police said he was murdered because he had
discovered irregularities in the three mills' books. Three
executives of the three mills, which have the same
management team, were arrested on charges of masterminding
the murder.

Praphan Siriviriyakul, managing director of the three
mills, said yesterday that his group would be able to
service its debts within 10 years.  (Bangkok Post  23-Oct-
1999)

NOBLE DEVELOPMENT: Asset trade part of restructuring
----------------------------------------------------
Noble Development Plc says its two wholly owned
subsidiaries have repaid the Bt469.23 million they owed
through asset transfers to the Bank of Ayudhya (BAY).
Wibha View Co Ltd has transferred 115 land plots to BAY,
and World Time Holding has transferred 40 condominium units
to the bank.  The repayments were part of Noble Development
Plc's debt-restructuring plan.  (The Nation  23-Oct-1999)

SAHAVIRAYA STEEL: Expects to be able to convert debt
----------------------------------------------------
Sahaviraya Steel Industry Plc (SSI), a hot-rolled steel
producer with an annual capacity of 2.4 million tonnes,
expects holders of its euro-convertible debentures will be
able to convert them to American depository receipts by Nov
1.

Every 20 units of euro-convertible debentures can be
converted into one American depository receipt.
The conversion is a crucial part of the company's debt
restructuring plan.  

The company also reported a net profit of Bt418 million for
the third quarter of the year, compared with Bt272.46
million net loss over the same period last year.  It
attributed the healthy financial results to foreign
exchange gains, higher sales and lower interest rates.  
(The Nation  23-Oct-1999)

SOGO: To increase lease tenants as part of restructure
------------------------------------------------------
As part of its restructuring plan, the Japanese department
store Sogo plans to double the floor space leased to
restaurants and other tenants at Amarin Sogo in Bangkok
within the next year.

Out of the total 11,000 square metres of store space at the
Amarin store, rental space would probably double to 1,000
square metres, said Tsukasa Ikeda, managing director of
Sogo (Thailand) Co and Erawan Sogo Co. Mr Ikeda denied some
media reports that Sogo would close its Erawan Sogo store
next door to Amarin Plaza and lease out the space.

"We're not considering any shutdown of the store at all,"
he said.

Erawan Sogo already rents out 2,500 square metres mainly to
restaurants, out of a total floor space of 11,000 square
metres. There was no plan to greatly expand the rental
space, he said.  Sogo has, however, reduced the number of
employees at the two stores by 10% to about 300 in the past
year.

Sogo's sales this year would likely drop by about 5% from
the year before, Mr Ikeda said. He declined to give
figures.  Non-Thai customers account for about 50% of all
patrons at the two stores.  (Bangkok Post  23-Oct-1999)

THAI IDENTITY GROUP: Court postpones bankruptcy decision
--------------------------------------------------------
The Central Bankruptcy Court yesterday put off
consideration of Thai Identity Group's fate again to Oct
29, saying that it has yet to complete its review of a
tonne of paper documents.  Further testimony will not be
needed but there are additional documents.

Thai Identity Group's case had already been postponed from
early this month because bank creditors wanted to file
bankruptcy suits against it, but a group of traders and
sugarcane planters creditors turned down the plan.
The new bankruptcy law allows the largest group of
creditors to vote down a plan although the group many have
a smaller amount of debt owed.

Thai Identity owes Bt14 billion through its three
subsidiaries: Thai Identity Sugar Co, Kaset Thai Sugar Co
and Ruam Phon Industry Nakornswan Co.  The court, at the
same time, has allowed the official receiver to set a
suitable remuneration for the planner after a sugar mill
group complained that Bt51 million remuneration per month
is too high. (The Nation  23-Oct-1999)

THAI NAM PLASTICS: Signs debt rehab agreement
---------------------------------------------
Thai Nam Plastices Plc says it and its subsidiary TNP
Industry have signed a combined Bt763.44-million debt-
restructuring agreement with 10 creditors on Oct 15.
The company also says it and its financial adviser are
preparing a rehabilitation plan in an attempt to maintain
its stock listing on the bourse. (The Nation  23-Oct-1999)

THAI OIL CO.: Creditors agree to restructure framework     
------------------------------------------------------        
After several delays, creditors have agreed to a framework
for restructuring Thaioil Co's debts totalling US$2.25
billion.

Representatives of more than 120 creditors of the country's
largest oil refiner have signed a "recommendation letter"
to comply with the conditions.  Industry Minister Suwat
Liptapallop (fifth from left) looks on as Thaioil managing
director Chulchit Bunyaketu (left) receives a
"recommendation letter" on debt restructuring from
creditors' representatives in Tokyo.

The debt restructuring programme agreed on in Tokyo on
Tuesday is believed to be the largest of its kind for a
company anywhere in the world.  The agreement came after
Industry Minister Suwat Liptapallop went to Japan to
persuade major lenders among Japanese banks that policies
would be in place to support Thaioil's future operations
and ensure viability, Thaioil executives said.  Two weeks
ago, creditors were reluctant to approve the package and
delayed a final vote to the middle of next month.

A key to the creditors' acceptance is the Thai government's
policy to support possible integration of Thaioil's
refining operations with the marketing business of the
Petroleum Authority of Thailand (PTT). This will form part
of the PTT's privatisation plan, which is expected to
materialise in the second half of next year.  Thaioil
executives said the "recommendation letter" was a crucial
factor in swaying sceptical creditors to vote in favour of
the debt structuring plan.

The letter, and the debt restructuring programme, will be
sent to all creditors for final consideration. Voting is
set for November 12 at a venue to be decided.  The
creditors are represented by members of 11 banks which are
owed about 35% of the outstanding debt. The banks are the
Bank of Tokyo-Mitsubishi, Bangkok Bank, Chase Manhattan
Bank, DKB Bank, Dresdner Bank, Industrial Bank of Japan,
Industrial Finance Corporation of Thailand, Sanwa Bank,
Sumitomo Bank, Thai Farmers Bank and Warburg Dillon Read.

The framework accepted by the creditors' representatives is
largely in line with terms endorsed by the cabinet on
August 24. The deal will cut Thaioil's total debt to $1.385
billion, a move which Thaioil said would put it back on a
sound financial footing.

Among the key elements of the debt restructuring is a
commitment by the PTT to inject $250 million in new equity
into Thaioil. That comprises $101 million in conversion of
trade debt to shares in Thaioil, plus $149 million in fresh
cash. Ultimately, the PTT will have a 49.99% stake in
Thaioil.  The PTT will supply crude oil and feedstocks to
the refinery and have the right to buy up to half the
volume of Thaioil's finished products.

Thaioil's lenders will hold 49.99% of the ordinary shares
by accepting stocks as payment of debt.  Thaioil's current
shareholders are the PTT (49%), the Chowkwanyun family,
founders of Thaioil (25.95%), the Royal Dutch/Shell Group
(15.05%), Caltex Petroleum Corp (4.75%), Crown Property
Bureau (2%) and others (3.25%).

Lenders who have not taken shares in lieu of repayment will
be committed to the $1.385-billion debt restructuring
programme, which will run for 10 years and can be extended
for an additional four years at Thaioil's request on
payment of a fee.  Thaioil, which operates a refinery in
Sri Racha producing 220,000 barrels per day, suspended
interest and principal payment to its creditors last
November when its financial troubles reached a critical
stage.  Its problems were caused by the plunge in regional
and local refining profit margins, prompted by a jump in
refining capacity and a drop in demand for refined
products.

Thaioil's gross refinery margin has fallen to an average of
$2 a barrel from $4 a barrel before the Asian economic
crisis, and is far below the level needed to cover its
interest payments. (Bangkok Post  23-Oct-1999)


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