/raid1/www/Hosts/bankrupt/TCRAP_Public/991118.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

            Thursday, November 18, 1999, Vol. 2, No. 225

                                     Headlines


* C H I N A  &  H O N G  K O N G *

ANSHAN IRON AND STEEL: Signs debt-for-equity deal
CHINA MERCHANTS HOLDINGS: Enters restructuring
CLIMAX INTERNATIONAL: White knight appears with offer


* J A P A N *

TOSHIBA CORP.: Posts 6-month loss


* K O R E A *

DAEWOO GROUP: Workouts for 4 affiliates coming Nov.25
DAEWOO GROUP: Foreign creditors reject $5 billion workout
DAEWOO GROUP: Workout meetings invite foreign creditors


* M A L A Y S I A *

TIME ENGINEERING: Three bidders pursuing


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

MONDRAGON INT'L PHILIPPINES: Creditors get break from SEC


* T H A I L A N D *

BANGKOK BANK: Posts 3rd quarter losses                       
KRUNG THAI BANK: Posts 3rd quarter losses
SIAM CITY CEMENT CO.: Posts 3Q loss
SIAM CITY CEMENT CO.: Takes move to refinance debts
THAI FARMERS BANK: Posts 3rd quarter losses
THAI PETROCHEMICAL INDUS.: Shareholder causes rehab delay
TOTAL ACCESS COMMUNICATIONS: Posts 3rd quarter loss
TPI POLENE PLC: Shareholder causes rehab delay
UNITED COMMUNICATION INDUS.: Posts 3rd quarter loss


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

ANSHAN IRON AND STEEL: Signs debt-for-equity deal          
-------------------------------------------------                
H-share Anshan Iron and Steel Complex, one of the
mainland's largest state-owned steel firms, has signed a
6.85 billion yuan (about HK$6.39 billion) debt-for-equity
swap agreement with creditors.

Xinhua news agency said Anshan's swap agreement was the
largest so far signed between a state-owned enterprise
(SOE) and the asset-management corporations Beijing set up
this year to liquidate non-performing loans at state-run
commercial banks. Creditors included the China Huarong
Asset Management Corporation, China Development Bank, China
Cinda Asset Management Corporation and the China Oriental
Asset Management Corporation, the agency said.

Xinhua quoted a Huarong Asset Management Corporation
official as saying the creditors and Anshan would organise
a new company, with Huarong holding shares valued at five
billion yuan and the other creditors holding part of its
shares.  The swap would reduce the Liaoning province-based
Anshan's gearing to 40 per cent from 71 per cent and cut
the firm's annual interest expenditures by nearly 500
million yuan.

This year, the mainland formed four asset-management firms,
each with registered capital of 10 billion yuan, to take
over bad debts at its big four state-owned commercial banks
- the Bank of China, the Agricultural Bank of China, the
Industrial and Commercial Bank of China and the China
Construction Bank. Modelled on the United States Resolution
Trust Corp, the asset-management companies - Donfang, Great
Wall, Huarong and Cinda - say debt-for-equity swaps will be
a main method of recovering loans and cutting the debt
burdens of SOEs.

The aim is to lower the gearing at state firms and give
ailing state banks a facelift by transplanting more than
one trillion yuan in problem loans to the management
companies.  They will try to recover the loans by packaging
and selling the equity to domestic and international
investors, some of whom will be sceptical about the quality
of the shares.

The deal follows an announcement this week that Beijing
plans to close 12 state-owned steel companies as part of
its efforts to restructure the problem-plagued industry.  
The decision is a reaction to heavy losses caused by low
efficiency and heavy loan burdens, which have shown no
signs of improving despite previous efforts to turn the
industry around.

Companies in the sector suffered losses of about 500
million yuan last year, said Wang Chengrong, an official
with the State Metallurgical Industry Bureau.  About 2.34
billion yuan in bad debt will be written off as a result of
the shake-up, which should cut overall steel capacity by
2.8 million tonnes, or 10 per cent.  The 12 firms suffered
combined losses of about 500 million yuan last year, said a
senior official from the State Metallurgical Industry
Bureau.  (South China Morning Post  17-Nov-1999)

CHINA MERCHANTS HOLDINGS: Enters restructuring             
----------------------------------------------            
The board of red-chip China Merchants Holdings
(International) Co Ltd yesterday announced a restructuring
aimed at helping fund its investment in southern China and
Hong Kong infrastructure assets.

China Merchants entered into four conditional sale and
purchase agreements as part of its strategy of focusing on
its core business of infrastructure and port activities,
according to a statement.  In the first two of these
agreements, the company has conditionally agreed to acquire
from CM Godown and Top Chief a 20.8 per cent interest in
China Merchants Shekou Port Service Co Ltd, whose two main
business operations are bulk cargo and domestic container
port operations in Guangdong.  The transaction would amount
to $289.1 million, which will be satisfied by the issue of
29.27 million new shares in the company to CM Godown (or
another member of the China Merchants Group as nominated by
it) and of 16.88 million new shares to Top Chief (or its
nominee).

The company has also conditionally agreed to acquire a 13
per cent interest in Western Harbour Tunnel Co Ltd and in
Hong Kong Tunnels and Highways Management Co Ltd from China
Merchants Holdings (HK) for $320 million. It has
conditionally agreed to sell to China Merchants Holdings
(HK) its 15.25 per cent interest in China Southern Glass
Holding Co Ltd for $273.8 million.

The acquisition of the interest in Western Harbour Tunnel
Co Ltd and in Hong Kong Tunnels and Highways Management Co
and the disposal of the interest in China Southern Glass
Holding Co are "inter-conditional."  The consideration for
the acquisition and the disposal will be set off against
each other with the balance of $46.2 million that is
payable to China Merchants Holdings (HK) to be satisfied by
the issue of 7,377,452 new shares in the company.

China Merchants Holdings (HK) indirectly holds a 52.7 per
cent equity interest in China Merchants Holdings
(International) Co Ltd.  (Hong Kong Standard  17-Nov-1999)

CLIMAX INTERNATIONAL: White knight appears with offer      
-----------------------------------------------------            
A Hong Kong property investor has thrown a lifeline to
Climax International, a stationery-maker which has
struggled to restructure $599.1 million debts during the
past 18 months. Sources said yesterday that First Century
Holdings, controlled by Frederick Kan Shiu-cheong, offered
to invest in the company.

The offer is an alternative to Climax's 26 bank creditors
on top of a revised debt-restructuring plan of its own
submitted last month.  The sources said Mr Kan had
submitted to the company a $50 million rescue proposal,
which involved a possible injection of certain real estate
investments in Hong Kong in exchange for up to 50 per cent
of Climax.  The proposal would also involve converting a
majority of the debts into new Climax shares, they said.

In spite of First Century's intention to acquire more than
half of Climax, it planned to skip a general offer for the
shares it was not to own by seeking an exemption from the
Securities and Futures Commission.  They said Climax's
financial health showed signs of improvement during the
past few months and was now sitting on a cash pile of about
$30 million.

Climax suspended its trading yesterday, pending an
announcement "in relation to a letter of intent dated
November 15 entered into between the company and an
independent third party for the subscription of new shares
of the company".  The counter closed on Tuesday unchanged
at 10.7 cents.

It is understood that Climax attracted almost 10 interested
parties during the past three months.  Climax's substantial
shareholder United Pacific Industries abandoned its attempt
to have Climax's financial problems solved in April under
mysterious circumstances.  It attempted to withdraw a
deposit of $50 million in Standard Chartered Bank as a
guarantee for the bank to provide the same amount of
working capital to Climax.

A string of expansion drives in production prior to the
onset of the economic crisis in 1997 left the company with
piles of obsolete inventory and high level of debts.  
(South China Morning Post  17-Nov-1999)


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

TOSHIBA CORP.: Posts 6-month loss
---------------------------------
Japan's electronics giant Toshiba Corp. on Monday posted
expanded losses in the six months to September as microchip
prices crumbled and restructuring costs inflated.

Group net losses climbed to 48.3 billion yen (460 million
dollars) in the six months, compared to a loss of 23.6
billion yen in the same period a year earlier.  Toshiba
suffered "significantly lower than expected prices" of
microchips, it said in a statement.  The company also had
to pay "restructuring costs for semiconductor operations,
including realignment of production facilities and
decommissioning of aging assets."

Toshiba pre-tax losses came to 65.7 billion yen in the six
months against a loss of 41.0 billion yen a year earlier.
But sales rose 5.0 percent to 2,622.5 billion yen.  For the
full financial year to March 2000, Toshiba projected a net
loss of 50 billion yen, a pre-tax loss of 70 billion yen
and sales of 5,650 billion yen.

The company said last month the full-year result would be
hurt by a US lawsuit settlement over an alleged glitch in
its personal computers which resulted in a costly
settlement.

"An expected business improvement in the second half will
not be enough to make up for the huge losses in the first
half or the 110 billion yen settlement cost for the US
floppy controller lawsuit," Toshiba's executive vice
president Kiyoaki Shimagami said.

Shimagami said the cost for the suit included an expected
decline in computer sales, but Toshiba "had not received
particularly negative consumer reaction" to the lawsuit.
Toshiba reported a 46.1 billion yen net loss by the parent
company on October 26.  (Balita News  15-Nov-1999)


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

DAEWOO GROUP: Workouts for 4 affiliates coming Nov.25
-----------------------------------------------------
The government has decided to finalize the debt
restructuring plan of the ailing Daewoo Group's four key
affiliates including Daewoo Corp. and Daewoo Motor by Nov.
25.

In the economic policy coordination meeting yesterday,
Minister of Finance and Economy Kang Bong-kyun, Financial
Supervisory Commission head Lee Hun-jai and banks' heads
also confirmed that only 28 out of the 6th to 64th business
conglomerates in terms of their size are required to meet
the 200 percent debt to equity ratio by the end of the
year.

Out of the 28, 11 have already achieved their debt
reduction goals, while six are required by the end of 200
and nine by the end of 2001, they confirmed.  Some of the
6th to 64th groups were under the debt workout program,
leaving only 43 striving to meet the debt reduction goal.
But conglomerates which is related to traditionally debt
heavy areas of business such as shipping and airlines are
excluded and subjected to a lenient set of requirements.
(Korea Times  17-Nov-1999, Korea Herald  18-Nov-1999)

DAEWOO GROUP: Foreign creditors reject $5 billion workout
---------------------------------------------------------
In response to the threatening message from local banks,
Daewoo Group's foreign creditors rejected the workout of
the total $5 billion debts, saying that Seoul has no right
to include the liabilities of the group's overseas
subsidiaries.

Saying that Daewoo's overseas liabilities involve hundreds
of different jurisdictions, foreign creditors said that the
Korean government and domestic banks have no right to make
any decision on the $4 billion debts of Daewoo's
subsidiaries abroad.

"It is wrong for the local government or creditors to issue
any statement on rescheduling the debts guaranteed by
Daewoo Corp. This is in serious violation of the
international business code," said a foreign banker.
"Resolution of Daewoo's overseas debt issue includes
different laws and regulations of over 200 countries. It is
never a simple issue."

Daewoo's domestic creditors sent a final warning Tuesday to
foreign banks that the group's entire $5 billion in
overseas debts will be subject to a loss sharing scheme
unless they comply with the ongoing workout plan
immediately.  Of the group's total $5 billion in overseas
debts, only $1 billion, which the company borrowed directly
from foreign banks, has been considered for the loss
sharing policy.

The remaining $4 billion, at present, is not subject to the
workout plan as the loans are given to Daewoo's overseas
subsidiaries independent of the debt rescheduling scheme.
But now domestic creditors threaten that the $4 billion
Daewoo Corp. guaranteed other overseas subsidiaries will be
included in the debt rescheduling plan unless foreign banks
agree to take part in the workout.

Since Daewoo's foreign subsidiaries are unable to meet the
repayments, the responsibility will fall on Daewoo Corp.
which is under the workout scheme.  The tough stance from
domestic creditors came in response to foreign banks'
tactics of slowing the negotiation process.  After being
presented with over a 50 percent loan loss ratio for major
Daewoo units, foreign creditors demanded sufficient time to
review the due diligence before agreeing to any
restructuring plan.

However, the local banking circle sees the strategy of
foreign banks from a different perspective, saying that
overseas creditors are trying to take a "free ride" from
the planned debt-to-equity conversion.  The local banks'
debt for equity swap will have to proceed soon regardless
of the foreign consent, and overseas creditors will, in the
end, enjoy the same benefits from Daewoo's improved
financial position without any loss.

The due diligence report stated that Daewoo Corp.'s total
bank liabilities amount to $25 billion, 50 percent of the
group's $50 billion in debts.  For Daewoo Corp. alone,
local banks decided to convert $15 billion in debts into
stocks and convertible bonds.  They will convert the $1.5
billion debts to company shares while allotting the
majority $13.5 billion to convertible bonds.  (Korea Times  
17-Nov-1999)

DAEWOO GROUP: Workout meetings invite foreign creditors
-------------------------------------------------------
Officials of the Corporate Restructuring Coordination
Committee (CRCC) and the Daewoo Group are meeting today
with the group's foreign creditors on debt restructuring
for the four main Daewoo subsidiaries in Hong Kong, a
government official said yesterday.

CRCC chairman Oh Ho-gun will request that the nine members
of the steering committee of Daewoo's foreign creditors
participate in the debt workout plans for the four Daewoo
units - Daewoo Corp., Daewoo Motor, Daewoo Heavy Industries
and Daewoo Electronics, the official said.

If the talks in Hong Kong make some progress, Korean
creditors will finalize their draft workout plans Nov. 25,
he added.  Daewoo's major foreign creditors, including
Chase Manhattan, Tokyo-Mitsubishi and HSBC, are expected to
present specific debt restructuring proposals for the four
companies in today's talks, the official said.

An official of a domestic creditor bank said since foreign
creditors are reluctant to participate in the workout
programs, they are likely to suggest debt write-offs
corresponding to the loan loss ratios of the four firms in
return for payment guarantees for the remainder of their
loans or conversion of them into good loans.

"If foreign creditors present specific demands, domestic
creditors are willing to accept them should they not impair
equity between the two sides seriously," the official said.
(Korea Herald  18-Nov-1999)


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

TIME ENGINEERING: Three bidders pursuing
----------------------------------------
Three companies, including one from Singapore, have
submitted bids to acquire debt-laden Time Engineering Bhd,
a subsidiary of Renong Bhd.

The three bidders for the company which also controls Time
Telecommunications Sdn Bhd are Maxis Communications Bhd,
Kejora Harta Bhd and ST Technologies of Singapore.  The
Corporate Debt Restructuring Committee (CDRC) was currently
evaluating the bids, Time Telecommuniations managing
director Jamal Surani told reporters after the signing of
an agreement among eight telcos on a set of guidelines to
ensure sound and ethical advertising.  (Star Online  17-
Nov-1999)


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

MONDRAGON INT'L PHILIPPINES: Creditors get break from SEC
---------------------------------------------------------
Creditors of beleaguered resort developer Mondragon
International Philippines, Inc. (MIPI) might just have a
second shot at getting back the board seats which they have
been barred from holding.  In a recent order, the
Securities and Exchange Commission (SEC) gave back the
creditors rights to function as MIPI stockholders,
including their right to participate in board elections.

"We agree with (the creditor banks') argument that the
petition (filed by MIPI) principally seeks to annul the
stockholders meeting on September 20, 1999. It never
assailed the status of respondents as stockholders of
record of MIPI in their own right as well as their standing
as pledgees of MIPI shares," the SEC hearing panel said.

The commission, however, stood firm on its earlier decision
enjoining representatives of MIPI creditors -- Asian Bank
Corp., Far East Bank and Trust Co. and United Coconut
Planters Bank -- from exercising their rights as members of
the board of directors and as officers of MIPI.  

In its October 20 injunction order, the SEC said "the
(creditor banks') representations with the public as the
newly elected officers of MIPI has created confusion and
chaos within the corporation, its investors and the
public," the SEC hearing panel said. "Certainly, this poses
danger to MIPI's stock valuation and the interest of the
investing public. This is the damage sought to be prevented
by the commission."

The banks, however, argued that "as pledgees of the MIPI
shares, they were authorized to call for meetings of
stockholders for any purpose to vote in the nomination,
election and removal of directors and to vote the pledged
properties, upon default in its obligations by the pledgor
(Gonzalez)."

An SEC official said with the newly issued order, creditors
can now exercise their rights. The official, however,
pointed out that the SEC does not have the power to
overrule the Makati regional trial court's temporary
restraining order against creditor banks.  Last Friday, the
Makati RTC issued a temporary restraining order (TRO)
barring creditor banks "from using the pledged shares of
MIPI ... or exercising any right involving said pledged
shares of stock or voting the same."

The creditors were also prohibited from committing any
other act that will directly or indirectly derail or impede
(MIPI) from complying with the compromise agreement.
Meanwhile, the SEC official said MIPI could be found guilty
of "forum shopping" -- bringing a case to different venues
-- since it issued a separate petition before the Makati
RTC, pending resolution of its case before the SEC.
(Business World  17-Nov-1999)


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

BANGKOK BANK: Posts 3rd quarter losses                       
KRUNG THAI BANK: Posts 3rd quarter losses                      
THAI FARMERS BANK: Posts 3rd quarter losses                
-------------------------------------------                   
Third quarter results announced by Thailand's four major
banks yesterday still show the crushing effects of bad
loans, with only one of them reporting profits.

Krung Thai Bank Plc. (KTB), the second biggest, announced
losses of 21.33 billion baht during the third quarter,
compared to 8.47 billion baht for the same period a year
ago.  Provisioning for loan losses was the main culprit as
the state-owned bank had to set aside additional reserves
of 20.04 billion baht.  The only encouraging sign was a
continuing decline in non-performing loans (NPLs), from
59.30 percent of total loans in the second quarter to 51.36
percent at the end of September. KTB said the decline in
NPLs was due to on-going progress in loan restructuring.
There has been considerable controversy over the accuracy
of KTB's official NPL figures.

The country's largest commercial bank, Bangkok Bank Plc.
(BBL), recorded a net loss of 13.68 billion baht versus a
loss 10.21 billion in the third quarter of 1998.

Thai Farmers Bank Plc., which holds the third place slot,
reported some improvement in its position, registering 7.05
billion baht in losses, versus an 18.8 billion baht loss
earlier. European ratings agency FITCH IBCA praised Thai
Farmers as "the strongest capitalised and best reserved of
the Thai banks," adding it should have sufficient capital
to absorb loan losses and fund business growth in 2000.

"The outlook for the bank's individual rating is positive,
with an upgrade likely in the first half of 2000," the
report said, adding it should return to a reasonable level
of profitability in 2001. It said the bank's net impaired
loans should fall from their peak of 50 percent to about 16
percent, or 80 billion baht, of total lending by the end of
this year. The bank was likely to meet its full minimum
loan-loss target by the year end, FITCH added.

SCB, the country's fourth largest bank, was the only
institution to record an audited profit in its third
quarter results. Net profit stood at 2.69 billion baht
against a loss of 1.69 billion baht last year. However, the
bank's nine month results showed a net loss of 36.97
billion baht versus a loss of 19.65 billion.

Ocean Securities analyst Arunrat Jivangura said that
investors were sidelined as hopes of the sector as a whole
returning to profitability remain low.  "As long as the
banking sector continues to shoulder (high loan-loss)
provisions, the chances of returning to profitability are
low."

BNP Prime Peregrine head of research Kasem Punratanamala
said current foreign investment in the banking sector
remains low due to concerns over the banks' non-performing
loans. He said there may have been some progress made in
private banks' debt restructuring, but restructuring the
nationalised and state-owned banks' debts had been quite
slow.

"Furthermore, the (recurrence) of non-performing loans is
possible as debt restructuring terms are mostly for debt
extension and reduction in accrued interest," he said.  
(Business Day  17-Nov-1999)

SIAM CITY CEMENT CO.: Posts 3Q loss
-----------------------------------
Siam City Cement Pcl, Thailand's second-largest cement
maker, said it lost 1.05 billion baht ($27 million) in the
third quarter, after posting a net profit of 1.17 billion
baht during the same quarter last year. The loss was
expected by most analysts.

The deterioration in Siam City Cement's earnings stemmed
mainly from a 1.43 billion-baht currency translation loss.
During the third quarter of this year, the baht weakened 10
percent against the US dollar, magnifying the company's
foreign debt of about $150 million when translated into
baht.

In the same period last year, Siam City posted a currency
translation gain of 1.94 billion baht, reflecting a 7
percent rise in the baht against the dollar.  Excluding the
currency loss, third-quarter results reflected improvement
in operating profit and cash flow. Sales rose by a quarter
to 4.43 billion baht, boosted by increased exports with
help of Switzerland's Holderbank Financiere Glarus AG, the
world's largest cement producer.

Siam City forecasts its average plant utilization rate at
80 percent this year, compared with 65 percent last year.
Gross margin expanded to 28 percent from 14 percent, as
average selling prices in the quarter was also higher than
the same period last year. Siam City registered an
operating profit of 599 million baht versus an operating
loss of 200 million baht in the third quarter last year.

Interest expense declined by about two-fifths to 449
million baht in the third quarter following restructuring
of $540 million debt in July. The company already repaid
$250 million as part of the restructuring, while principal
payment was postponed on the remaining debt, with payment
not starting until 2001.  (Business Day  17-Nov-1999)

SIAM CITY CEMENT CO.: Takes move to refinance debts
---------------------------------------------------
Siam City Cement Co (SCCC) says it has attracted pledges
for $240 million from foreign banks for a five-year term
loan to be signed tomorrow.  The deal would be the first
five-year corporate syndicated loan in Thailand since the
Asian crisis began two years ago.  The company is seeking
$150 million to help refinance existing debt, saving around
$10 million in interest charges over the life of the
agreement.

"This facility will set a new benchmark for future long-
term fund-raising exercises for Thai corporations," said
Lawrence Yeo, managing director of Citicorp Investment Bank
(Singapore) Ltd, the lead arranger.

SCCC will also issue five billion baht in debentures as
part of its debt-restructuring plans, with interest rates
expected to be announced tomorrow.

Shares in Siam City, in which Holderbank Financiere Glarus
AG of Switzerland and Thailand-based Ratanarak family own
slightly more than 50 percent, slid 0.8 percent to 127 baht
on Aug. 17, a day after the company said its second-quarter
loss narrowed 83 percent from the same period last year, to
2.91 billion baht.

Siam City shares rose 151 percent this year, compared with
a 20 percent increase in the benchmark SET Index. The stock
reached a 52-week high of 156 baht on May 6 and a 52-week
low of 50.45 baht on Nov. 10 last year. Yesterday, it
gained 0.7 percent to 146 baht.  (Bloomberg, Business Day;
Bangkok Post  17-Nov-1999)

THAI PETROCHEMICAL INDUS.: Shareholder causes rehab delay
TPI POLENE PLC: Shareholder causes rehab delay
---------------------------------------------------------
The massive $4.5-billion combined debt restructuring of
Thai Petrochemical Industry Plc (TPI) and its subsidiary
TPI Polene Plc has been delayed by the major shareholder
group led by Prachai Leopairatana who has toughened his
stance because of the recovering economy and other factors,
according to several bank sources.

A high-ranking bank source at one of TPI Group's major
creditors, who asked not to be named, said the parent
company's $3.2-billion debt restructuring plan, approved
earlier by creditors and major shareholders, could not be
signed yet because the latter had changed their minds and
were seeking better terms and conditions.

Among the major creditors of Thai Petrochemical Industry
are Bangkok Bank, International Finance Corp and the US
Exim Bank. In addition to the $3.2-billion debt of Thai
Petrochemical Industry, the cement maker TPI Polene owes
another $1.3 billion. The major creditors are Bangkok Bank,
Krung Thai Bank and KFW of Germany.

K Mirza, the chief representative of International Finance
Corp, an investment arm of the World Bank, confirmed the
restructure plan could not be signed yet because a few
things remain unsettled. However, he said he hopes to see
the agreement signed before the end of the year.  Prachai
could not be reached for comment yesterday.  The bank
source said creditors voted for the TPI debt plan some time
ago.

But Prachai, who is chief executive of TPI Group, refused
to go ahead with the plan at the last minute, because he
felt the economy had improved. The price of petrochemical
products has also recovered and has entered an upward
trend.  According to the bank source, Prachai did not want
to accept the condition requiring TPI to issue capital
shares to raise $500 million in 2002 to pay back debt, and
he insisted the new interest rate on debt was still too
high.

Creditors recently proposed setting interest rates at MLR
minus 3 per cent for the first year of a 5-year plan, MLR
minus 1 per cent for the second year, and MLR plus 1 per
cent for the third year. In the fourth and fifth years, the
rate would be MLR plus 2 per cent.  In addition, TPI is to
sell non-core assets to pay back debts in the second year
of the 5-year plan.

Meanwhile, TPI Polene yesterday held a bondholders' meeting
at its headquarters. Only half of 40 bondholders who said
they would attend the meeting actually attended. After the
meeting, TPI executives would not disclose details on
progress of the debt restructuring plan.

An adviser for TPI Polene only said: "It was a good
meeting."

Creditors of TPI Polene are supposed to vote on the
company's debt restructuring plan tomorrow, according to
the time frame set by the corporate debt restructuring
advisory committee of the Bank of Thailand. However, the
source said creditors were against the plan in an initial
sound-out of opinions before the vote, because the haircut
(sharing of losses) is too high, but he declined to be more
specific.

Under this plan, TPI Polene would have six months to issue
new capital shares to raise $180 million to pay for the
buyback of its debts from creditors via auction. If the
plan is not approved by the Nov 18 deadline, the firm will
have to propose a new plan by the next vote on Dec 3. The
source said the TPI Polene shareholders had proposed to buy
back part of the $1.3-billion debts from creditors at an
undisclosed discount rate, but creditors rejected the offer
because the discount was too steep.

The creditor banks wanted a neutral party on the creditor
steering committee to help settle the pricing of the debt
buyback, said the source.  Other bank sources said the debt
plan might not be concluded before the year-end. After the
voting, each bank would have to seek approval from their
respective headquarters, which is time consuming.  

Sure not to help the situation is the latest report on the
company's operation in the third quarter showing a loss of
4.59 billion baht or $119 million or 9.04 baht per share,
the weak baht making its foreign debt burden worse. (The
Nation, Business Day  17-Nov-1999)

TOTAL ACCESS COMMUNICATIONS: Posts 3rd quarter loss
---------------------------------------------------
Singapore-listed Total Access Communications enjoyed a 25
per cent jump in sales for the third quarter ended Sept 30,
but sank into the red because of foreign exchange losses.

The Thai telecommunications company yesterday announced a
19 per cent higher operating income of 520 million baht
(S$22.4 million) as core operating business swelled from
3.7 billion baht to 4.7 billion baht during the quarter.
But the earnings were wiped out by hefty unrealised forex
losses of 4 billion baht due to the weakening of the Thai
currency against the US dollar.

The forex loss contrasts with a forex gain of 5 billion
baht in the previous corresponding period.  As a result of
the currency losses, the group suffered a net loss of 3.5
billion baht, compared with a net gain of 3.9 billion baht
previously. Loss per share works out to 8.76 baht, against
earnings per share of 10.43 baht in the previous third
quarter.

TAC continues to be weighed down by heavy debt. For the
period just ended, group liabilities stood at 53 billion
baht, against shareholders' equity of 8.8 billion baht.
Still, this was an improvement from 59 billion baht
previously.  TAC said that during the three months under
review, it added 94,800 new subscribers, made up of 41,000
for the analogue WorldPhone800 network and 53,700 for the
digital WorldPhone1800 network.

As of Sept 30, TAC had 638,600 analogue subscribers and
373,100 digital subscribers, or a total of 1.01 million,
which essentially gives it a 43 per cent share of the Thai
cellular market.  On the mainboard here yesterday, TAC
closed 24 US cents up at US$3.24 on a volume of 4.1 million
shares.  (Business Times  17-Nov-1999)

UNITED COMMUNICATION INDUS.: Posts 3rd quarter loss
---------------------------------------------------
United Communication Industry Pcl (UCOM), majority owner of
Thailand's No. 2 mobile phone operator, fell into a loss in
the third quarter as a weaker baht increased foreign debt
and equipment costs.

UCOM lost 6.7 billion baht ($172 million), or 15.44 baht
per share, after earning 1.1 billion baht, or 51.72 baht a
share, a year earlier. The baht fell 10 percent against the
dollar between July 1 and Sept. 30, increasing the cost of
servicing about $450 million in foreign-currency debt.
The company said it also wrote off 2 billion baht of
"impaired" assets, which it didn't specify. Such assets
could be uncollectible accounts or investments in other
businesses and property.

A third of the loss also came from consolidating results of
mobile phone operator Total Access Communication Pcl, in
which Ucom owns a 65 percent stake. TAC lost 3.55 billion
baht, from a 3.9 billion baht profit. Without its 4.07
billion forex loss, it had a profit from operations of 520
million baht.

"Mobile phone sales were better than expected, with the
pick-up beginning in June," said Wong Fan Voon, senior vice
president of Total Access. "The pick up of the economy has
led people to feel more confident, and mobile ones are one
of the consumer items people are first to buy."

Prices of mobile phones have also been falling, partly
because manufacturers have cut prices and also phone
operators such as TAC have discounted amid increased
competition, he said.  Total Access ranks just behind Shin
Corp. Pcl's Advanced Info Service Pcl in mobile phone
subscribers, with a market share of 43 percent at Sept. 30.
TAC had a net gain of 41,200 subscribers in the third
quarter, bringing total subscribers to 1.01 million.

UCOM and Total Access separately restructured about $1.1
billion of combined debt the past year, most involving the
same 50 creditors.  Ucom restructured $570 million of debt
in March, postponing repayment by as much as five years.
The company also swapped debt for new equity with some
creditors, a move that saw closely held investment group
Somers Ltd. of the U.K. double its stake in Ucom to 26
percent, matching the reduced stake of the founding
Bencharongkul family.  (Bloomberg, Business Day  17-Nov-
1999)


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