/raid1/www/Hosts/bankrupt/TCRAP_Public/991206.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, December 6, 1999, Vol. 2, No. 237

                         Headlines


* C H I N A  &  H O N G  K O N G *

A.O.U. (H.K.) COMPANY: Facing winding up petition
CHINA FIRST AUTO GROUP: Enters into debt-to-equity swap
GOLDEN HARVEST GROUP: Company head has loan woes
GUANGDONG ENTERPRISE: Left out of gov't cash infusion
GUANGDONG INT'L TRUST: Selling assets to pay debts
GUANGDONG INVESTMENT: Stock rises on rumors of rehab plan
LIUZHI MINE: Files for bankruptcy, workers jobless
SIU FUNG CERAMICS: White knight doint due diligence
TSUI TSIN-TONG: Court orders it to pay $69.6M to ING BFP
YAT CHAU COMPANY: Facing winding up petition
ZHUHAI HIGHWAY CO.: Moody's lowers bonds rating


* I N D O N E S I A *

PT CHANDRA ASRO PETRO.CTR.: Rehab plan approval doubtful


* K O R E A *

DAEWOO GROUP: Debt rescheduling expected next week


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

EYCO GROUP: Creditor write-offs after auction possible


* S I N G A P O R E *

TRANSMARCO LTD: Gives funds to subsidiary after big losses


* T H A I L A N D *

MEDIA OF MEDIAS: Creditor majority approves rehab
SUNTEC PLC: SET could delist company
SWEDISH MOTORS CORP.: Creditors approve rehab plan
THAI OIL CO.: Tank-farm fire not to affect restructuring
THAI TEL.& TEL.: Sticking points to delay rehab approval
TPI POLENE: Creditor majority agree with rehab plan


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

A.O.U. (H.K.) COMPANY: Facing winding up petition
-------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 12, 2000 on the
petition of Hong Kongseibu Enterprise Company Limited for
the winding up of A.O.U. (H.K.) Company Limited. A notice
of legal appearance must be filed on or before January 11.

CHINA FIRST AUTO GROUP: Enters into debt-to-equity swap
-------------------------------------------------------
China's non-performing asset operators have entered into a
7.9 billion yuan (HK$7.41 billion) debt-equity swap
agreement with China First Automobile Group (FAW), the
country's largest carmaker, according to the China Daily.

This is the largest debt-equity swap transaction so far.
The transaction involves FAW's debts owned by China's four
State-owned commercial banks and the State Development Bank
(SDB).  The debts amounting to 7.9 billion yuan will be
transformed into equity rights of the four banks' non-
performing asset management corporations (AMC), which
bought the debts from the banks, and SDB.

Also signed yesterday were debt-equity framework agreements
with 10 subsidiary companies of Shanghai Electric Apparatus
Co, a heavyweight in the mainland's electricity industry
and a listed company on the Shanghai Stock Exchange.  The
10 subsidiary companies' 4.55 billion yuan in debts will be
transformed into equity rights of the four AMCs and SDB.
The batch of agreements involves 12.5 billion yuan in non-
performing assets, and is the largest batch of debt-equity
agreements ever signed, said Yang Kaisheng, president of
Huarong AMC, the operator of the non-performing loans of
Industrial and Commercial Bank of China (ICBC), during the
signing ceremony.

If the framework agreements can fall into real contracts,
Huarong will join hands with SDB, and Cinda, Orient and
Great Wall - AMCs with China Construction Bank, Bank of
China and Agricultural Bank of China respectively - to form
new companies with the above 11 groups and companies. As
the largest AMC to have match-made the swaps, Huarong will
hold 3.2 billion yuan of equity rights in the new FAW
company, and 3.45 billion yuan in the 10 new firms of
Shanghai Electric Apparatus Co, thus becoming a major
shareholder of the 11 companies.

After the swaps, the liabilities/assets ratios of FAW and
Shanghai Electric Apparatus Co will each drop by an average
of 25 per cent. The new liability structure will become
reasonable as compared to international standards, Mr Yang
said.  FAW, which holds the lion's share of China's vehicle
industry, has made its brand No 1 among domestic car
manufacturers.

As the first domestic carmaking enterprise since 1949, FAW
has made tremendous contributions to the country's economic
growth, said FAW general manager Zhu Yanfeng at the signing
ceremony.  Shanghai Electric Apparatus is also a large-
scale electric group with its core business in power-grid
and electronic and machinery products. However, the
companies' liabilities/assets ratio became over-high under
the planned economy, which has hindered further
development.

After signing the framework agreement, Huarong will step up
negotiations with the companies on the detailed method of
enterprise restructuring and organisational system
transformation to write down the formal debt-equity swap
contract as soon as possible.

"The debt-equity swap will help close the gap between
China's automobile and electronics industries and their
international counterparts, and prepare them for the fierce
competition once China enters the World Trade
Organisation," Mr Yang said.  (Hong Kong Standard  04-Dec-
1999)

GOLDEN HARVEST GROUP: Company head has loan woes
------------------------------------------------
Golden Harvest boss Raymond Chow Ting Hsing has been
accused of flouting a $101M loan deal with Chase Manhattan
Bank after the entertainment company sold its film library
and rights to Warner Brothers for US$25M.  

The bank is suing for damages.  It has also filed wind-up
petitions against the controlling company of the Golden
Harvest Group, WFC Holdings and Panasia Films Production.  
Mr. Chow agreed to grant a debenture to the bank over all
undertakings, properties and assets of Golden Harvest
Pictures as security on the $101M credit facility extended
to Panasia, according to a High Court writ.  

However, he failed to do so and instead proceeded to induce
Golden Harvest Pictures to sell its library of 170 films -
including all physical and intellectual property rights -
to pay off other debtors, it is alleged.  Panasia now has
insufficient funds to repay the bank.  As of Wednesday, the
sum of $93.93M plus interest of $6M was outstanding, the
writ states.

GUANGDONG ENTERPRISE: Left out of gov't cash infusion
-----------------------------------------------------
The Central Government in Beijing has channelled 20 billion
yuan (HK$18.6 billion) to Guangdong province to help
restructure state enterprises but the troubled Guangdong
Enterprise (GDE) would not receive any of that, said
sources familiar with GDE restructuring progress.

"Those funds would be used for other restructuring projects
and to refinance some banks in Guangdong," said the source.
"GDE would not benefit from the move."
Goldman Sachs, the financial adviser for GDE, and the
creditors both want to close the deal as soon as possible,
but no deadline has been set.  "After all we have gone
through, deadlines are no longer meaningful," said the
source.

But it is understood that some GDE debtors would receive
part of the funds and be able to partly repay GDE, creating
cash flow.  In a separate statement, Liu Jin-bao, chairman
of the Hong Kong Association of Banks (HKAB) said yesterday
that GDE creditors and Goldman Sachs are not expected to
conclude the negotiations of the restructuring by the end
of the year.  Mr Liu said he expects a final restructuring
plan early next year.

The GDE restructuring, if successful, would provide a
benchmark for enterprises which are under restructuring in
the mainland, said Mr Liu.  (Hong Kong Standard  04-Dec-
1999)

GUANGDONG INT'L TRUST: Selling assets to pay debts
--------------------------------------------------
Bankrupt Gitic Enterprises _ a subsidiary of Gitic Hong
Kong which is a unit of the Guangdong International Trust &
Investment Corp. (Gitic) _ are selling off its assets in
order to pay outstanding debts.

Building materials company Gitic Enterprises said yesterday
it is selling marble and granite importer Gitic Industrial
B V I for $44.5 million to Gitic Enterprises director Lam
Yau-pui.  Gitic Enterprises is 58.66 per cent owned by the
failed Gitic HK.  The sale of Gitic Enterprises' assets
would not affect the liquidation of Gitic because the two
companies are separately liquidated, said Gitic liquidator
chief Louie Choi Ting-ki, partner of KPMG Peat Marwick
Huazhen.  (Hong Kong Standard  04-Dec-1999)

GUANGDONG INVESTMENT: Stock rises on rumors of rehab plan  
---------------------------------------------------------
Guangdong Investment yesterday saw its share price soar
18.62 per cent on rumours that an agreement on the US$5.59
billion debt-restructuring plan for the insolvent parent
group was imminent.

The counter shot to an intra-day high of HK$1.32 before
ending at HK$1.21 on relatively heavy turnover, with 50.18
million shares changing hands.  Guangdong Investment issued
a statement saying it was not aware of any reasons for the
surge in share price and trading volume.  It said there had
not yet been an agreement reached on the debt-restructuring
proposal.

Sources said the insolvent parent, Guangdong Enterprises
(Holdings) (GDE), aimed to reach a consensus on the debt-
restructuring package this month but added that it was
difficult to tell whether this could be accomplished.  
Progress had been made, albeit slowly, since GDE and its
creditor banks resumed talks this autumn after several
months of stalemate, they said.

The Guangdong provincial government has stopped helping GDE
make interest payments since July 1, after creditor banks
rejected the debt-restructuring proposal because of
possible heavy losses. A source said the resumption of
interest payment was not impossible but would hinge on
other issues under discussion in the overall package.  
Sources said recent talks indicated that GDE's bank
creditors would want to receive bonds issued from the
Dongjiang Water supply company before it was to be injected
into Guangdong Investment in a bid to increase their loan
recovery rate.  (South China Morning Post  03-Dec-1999)

LIUZHI MINE: Files for bankruptcy, workers jobless         
--------------------------------------------------             
The third-biggest coal mine in the southwest province of
Guizhou has applied for bankruptcy, throwing tens of
thousands of miners out of work.

The state mine, in Liuzhi in the southwest of the province,
was established in July 1970 as part of chairman Mao
Zedong's "third-line" policy, to move industrial production
away from coastal provinces where it was vulnerable to
potential attack by US bombers.  The state sent 200,000
workers from Shandong, Henan, Hebei and Jiangsu to develop
steel, building materials and coal in the Liuzhi region,
the China Youth Daily reported yesterday.

The mines, covering an area of 500 square kilometres,
should never have been opened since they produce low-
quality coal, with a high sulphur and lime content, and
have a serious problem of leakage of water and gas. But, in
the early 1970s, strategic considerations over-rode
economic considerations.  Shi Wengang, deputy chief of the
Liuzhi Mining Bureau, said the mine started losing money
from the day the first coal was dug.

"In the old planning era, it was enough to produce coal
whatever the quality and it was sold. Once China started
the market economy and especially after it liberalised the
price of coal, our financial troubles worsened," he said.

Before 1995, the mine sold 1.6 million tonnes a year,
falling to 1.01 million tonnes in 1997 and 750,000 tonnes
in 1998, when its losses were 100 million yuan (about HK$93
million) and debts to banks totalled 560 million yuan. It
cost 230-240 yuan to produce a tonne of coal that it sold
for 100-110 yuan.  An official of the Guizhou Provincial
Coal Bureau said it faced a challenge to deal with the tens
of thousands of workers who had lost jobs.

"We have so much to do to give them a feeling of
stability," he said, without further details.

The closure is part of the government's uphill battle to
limit coal output and reverse the fall in prices.  In a
national telephone meeting on the issue on Monday, Sheng
Huaren, chairman of the State Economic and Trade
Commission, said that, during the past year, progress had
been made but the problem remained severe.

"Many mines remain open that should be closed. There have
been fake closures and some have re-opened after being
closed. There is over-supply of coal and the industry's
losses are going up," the China Economic Times yesterday
quoted Mr Sheng as saying.  "We must close inefficient,
polluting mines with a high rate of accidents, but this is
not easy. It is not a simple problem, it is a political
problem."

This is because local governments defy orders from Beijing
to close their mines on which they depend for jobs and
revenue. On Wednesday, the commission set a production
ceiling of 900 million tonnes for coal next year, which
would be a fall of 26 per cent from the actual output last
year of 1.25 billion tonnes, down 8.9 per cent from 1997.  
(South China Morning Post  03-Dec-1999)

SIU FUNG CERAMICS: White knight doint due diligence        
---------------------------------------------------        
Garment tycoon Charles Yeung Chun-kam has started due
diligence on Siu Fung Ceramics' mainland assets as part of
his rescue bid for the insolvent company.  Mr Yeung
yesterday said he expected negotiations with mainland
creditors about restructuring debt to be difficult, given
that Siu Fung owes $2.2 billion to 19 Hong Kong banks.

"Although the amount of the debts incurred in the mainland
are expected to be less than those in Hong Kong, their
terms are more complicated," he said.

Under the plan, the debt would be cleared by a $70 million
payment to creditors and a 3 per cent stake in the company.
Meanwhile, Mr Yeung's listed Glorious Sun Enterprises
yesterday announced a net profit of $130.5 million in the
six months to September 30, up 10.03 per cent from the same
time last year. Turnover increased 2.58 per cent to $1.61
billion.  Earnings per share amounted to 13.05 cents, and
the board declared an interim dividend of 3.3 cents per
share, compared with 1.5 cents per share a year earlier.  
(South China Morning Post  04-Dec-1999)

TSUI TSIN-TONG: Court orders it to pay $69.6M to ING BFP
--------------------------------------------------------
The Court of First Instance yesterday ordered pro-Beijing
businessman Tsui Tsin-tong to repay about $69.6 million to
ING Bank as a guarantor to a debt-restructuring agreement
entered into in November 1997.

The litigation originated from a transaction involving a
customer named Mr Lam who agreed to buy warrants over
shares of Pearl Oriental from New China Hong Kong (NCHK)
Capital, which in turn bought the same warrants from ING
Baring Financial Products (ING BFP), according to the court
judgement issued by Justice William Stone.

A sharp fall in Pearl Oriental's share price beginning June
1997 led to an agreement between NCHK Capital and ING BFP
that the shares, which were the subject of a put option,
should be sold as hedge against further falls in the share
price.  But about 383.6 million out of the original 400
million shares remained unsold after ING BFP had exercised
the put option on 4 September 1997.

The relevant parties later entered into two agreements on
28 November 1997.  Under the first, ING BFP should sell
about 165.6 million of the unsold Pearl Oriental shares to
NCHK Capital for 40 cents each, or a total of about $66.2
million.  The second agreement involved a debt rescheduling
deed.  Under this second agreement Mr Tsui agreed to be a
guarantor of the debts.

By summons dated 12 May 1999, ING Bank applied for a
summary judgement against Mr Tsui for a payment of about
$69.6 million which was the outstanding amount as of 10
November 1998.  Two hearings were held in the closed court
last month and Mr Justice Stone yesterday delivered his
judgement.

Anthony Neoh, counsel for Mr Tsui, argued that the over-
the-counter American-style put options would be illegal or
unenforceable under two present local laws.  So a guarantor
was not liable if the primary obligation was unenforceable,
he argued.

"For my own part, I do not think that this argument is
worth powder and shot," the judge said in his judgment.
"In short, I can identify no illegality tainting the
obligation now sought to be enforced," the judge said.

Mr Neoh also forwarded four other arguments for his client
but to no avail.  "I have been driven to the conclusion
that no issue has been raised by the defendant which would
justified this case being permitted to proceed further,"
the judge said.

The judge added: "In my view, the arguments raised by the
defendant are fanciful and constitute no more than a smoke
screen which fails to withstand detailed scrutiny."

Mr Justice Stone then made judgement for ING Bank against
Mr Tsui in the sum claimed of about $69.6 million plus
accrued interest.  (Hong Kong Standard  04-Dec-1999)

ZHUHAI HIGHWAY CO.: Moody's lowers bonds rating
-----------------------------------------------
Moody's Investors Service has lowered the ratings of Zhuhai
Highway Company's senior line revenue bonds to Ba1 from
Baa3 and its junior line revenue bonds to Ba2 from Ba1. The
downgrade was prompted by Moody's concerns that the
economic conditions on the mainland may continue to
pressure ZHC's performance in the intermediate term. It
said these ratings remained under review for possible
further downgrading.

YAT CHAU COMPANY: Facing winding up petition
--------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for December 29 on the petition of
Japan Leasing (Hong Kong) Limited (in Creditors' voluntary
liquidation) for the winding up of Yat Chau Company
Limited. A notice of legal appearance must be filed on or
before December 28.


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

PT CHANDRA ASRO PETRO.CTR.: Rehab plan approval doubtful
--------------------------------------------------------
Failure looms large in the debt restructuring plan of PT
Chandra Asri Petrochemical Center (CAPC) as its creditors
from Japan turned down debt to equity swap proposal.
(Asia Pulse  02-Dec-1999)


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

DAEWOO GROUP: Debt rescheduling expected next week
--------------------------------------------------
Rescheduling of Daewoo Group's over 5 billion foreign
liabilities is expected to be settled next week.

Lee Hun-jai, chairman of the Financial Supervisory
Commission (FSC), said yesterday that Daewoo's overseas
loan issues will be resolved within the first few days of
next week.  During a meeting with local press at FSC
headquarters in Yoido, the nation's top financial regulator
said the government considers taking over part of Daewoo's
foreign liabilities once the loss ratio is confirmed with
some 200-plus overseas creditors.

"Daewoo's foreign debt issue will be resolved during the
early part of next week. The government and domestic
creditors now have come up with the policy which will be
offered to foreign banks shortly," Lee said.  "From next
week, the government and domestic creditors will be able to
speed up Daewoo's workout process."

With the top FSC official showing confidence for ending the
five-month-long dispute with foreign bankers, the
speculation is that a deal has already been reached between
the two sides.  Finance and Economy Minister Kang Bong-kyun
also said during an interview with foreign press yesterday
that the government is studying the procedures for the
Korea Asset Management Company (KAMCO)'s takeover of
foreign banks' bad loans in Daewoo.

The government and Daewoo's foreign creditors in principle
agreed to the view that Seoul's takeover of a portion of
the group's overseas debts is the only practical solution.
The only difference of opinion was over the loss ratio.
The financial authority and domestic creditors said that
most of Daewoo's foreign creditors should assume a 75-
percent loss, adding that KAMCO will take over the
remainder.

The major foreign creditors on the other hand argued that
they were willing to accept only a 50-percent loss from
their loans to Daewoo.  (Korea Times  03-Dec-1999)


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

EYCO GROUP: Creditor write-offs after auction possible
------------------------------------------------------
If assets owned by appliance maker Eyco Group of Companies'
are found insufficient to cover outstanding debts, creditor
banks may end up writing off a portion of their loans, a
banking source said.

The source said the value of the properties put up as
collateral sum up to only about 2.3 billion Philippine
pesos (US$56.3 million at PhP40.83:US$1), while free assets
-- or the assets not mortgaged to banks -- are worth
between PhP1.2 billion ($29.4 million) and PhP1.5 billion
($36.7 million).  The Eyco Group's debts to the consortium
of 28 creditor banks and financial institutions have
ballooned to PhP5.2 billion ($127.4 million) from PhP2.08
billion ($50.9 million) in 1997, when the company applied
for debt relief with the Securities and Exchange Commission
(SEC).

It was also the first firm which applied for debt relief
since the regional financial crisis affected operations of
most companies.  Of the creditors, only a few are holding
collateral. Among the secured creditors are Philippine
National Bank (PNB), Far East Bank and Trust Co. (FEBTC),
Allied Banking Corp., Traders Royal Bank (TRB) and Westmont
Bank.

Last September 14, the SEC declared the Yutingco-owned
group of companies "insolvent" and ordered its liquidation.
"This decision effectively puts Eyco out of the judicial
hands of SEC," the source said.  The group made a bid
before the Court of Appeals to reverse the SEC's order, but
no temporary restraining order (TRO) was issued to bar the
banks from foreclosing Eyco's assets, the source said.

Allied Bank initiated foreclosure proceedings on the Eyco
Group's assets, specifically on the Cainta property. Its
move was followed by the other secured creditors, the
source added.

"What will happen is the secured creditors will run after
the security. But the collateral may no longer be enough to
satisfy their claims... The free assets will be shared
among the clean and unsatisfied creditors," the source told
BusinessWorld.  "Clean creditors will not be able to cover
their exposure. At most, the unsecured creditors will
probably recover only 20% of their exposure... Some
creditors will end up writing-off some of the debts."

The Eyco Group's biggest free asset is the 14-hectare
former Ramitex property in Valenzuela, Bulacan, the banker
said. Based on conservative valuation estimates, the
property is worth PhP800 million ($19.6 million). Another
appraiser, however, has valued the same property at PhP1.4
billion ($34.3 million), the source added.

"The consortium of creditor banks has been meeting to
effect an orderly liquidation of the company," he said.
Meanwhile, the source said the Eyco management's proposal
to pay off the firm's debts through debt-for-asset swap
arrangement is "too late."

"The dacion en pago proposal has been overtaken by
foreclosure events. The banks have no more faith in the
present management. The banks have ignored the company's
proposal," the source added.

The Eyco Group was said to have approached PNB, Allied Bank
and FEBTC on its latest proposal, which stipulates that the
properties under the swap deal will still be subjected to a
five-year redemption period.

"The proposal says the management will have the right to
repurchase the properties within five years," the source
said.

Foreclosed real-estate properties only have a one-year
redemption period. After the lapse of this period, banks
may opt to sell the assets.  The Eyco Group's problems
began when it was doubly hit by the slump in the real
estate industry and the peso volatility at that time.

"It's liabilities further rose because some of their debts
were in dollars," the source pointed.

The Eyco Group is composed of Nikon Industrial Corp.,
Nikolite Industrial Corp., 2000 Industrial Corp., Trade
Hope Industrial Corp., Thames Philippines, Inc., EYCO
Properties, Inc., Nikon Land Corp., Clarion Printing House,
Inc., Integral Steel Corp. and First Unibrands Food Corp.
The family-controlled Eyco Group's core business is
manufacturing appliances such as electric fans.

The group is also engaged in liquefied petroleum gas
cylinders and snack foods manufacturing, real estate, and
printing services.  Other creditor banks are Rizal
Commercial Banking Corp., Bank of Commerce, PCIBank,
Development Bank of the Philippines, Union Bank of the
Philippines, Solidbank Corp., Land Bank of the Philippines,
Metropolitan Bank and Trust Co. and Bank of the Philippine
Islands.  (Business World  03-Dec-1999)


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

TRANSMARCO LTD: Gives funds to subsidiary after big losses
----------------------------------------------------------
Transmarco Ltd has finally provided for its Sri Lanka
telecom project in full -- a disastrous investment which
cost the company almost $90 million.

Yesterday, the company announced its interim results and
also made a cash call on shareholders.  It made a full
provision of $16.5 million for its net investment and
advances to its 60 per cent subsidiary Lanka Bell, a move
that dragged bottomline loss for the half year ended Sept
30 to $26 million.  The provision, the last that Transmarco
will make for Lanka Bell, meant that the group had lost all
its $88 million investment in the troubled Sri Lankan
telecommunications operator since 1996.

"Lanka Bell will no longer have any (negative) impact on
the group's accounts," Balz Kloti, Transmarco managing
director said.

The attributable loss of $26 million wiped out nearly half
of net tangible assets per share from $1.06 to 57 cents.
Yesterday, Transmarco also proposed a 1-for-2 rights issue
of 13.75 million shares at $1.20 each to raise $16.5
million for working capital and to repay part of the
borrowings of subsidiary Transasia Telecom.

Transmarco's 65.5 per cent owner, Indonesia's PT Hanjaya
Mandala Sampoerna, has undertaken to subscribe for all
shares not taken up by minority shareholders.  At a press
conference yesterday, Mr Kloti said Transmarco incurred an
operational net loss of $9.6 million, compared with $9.3
million loss previously. The loss per share rose to 35
cents from 34 cents.  Turnover edged up 6 per cent to $53.4
million as the company's retail and distribution business
improved.

Its retail division raked in pre-tax profits of $1.9
million, not quite enough to cover operating loss of $17.5
million in telecoms and $300,000 in investment and
property.  Mr Kloti said Lanka Bell had been hitting the
wall with its talks with its two major creditors, Northern
Telecom and GTE, which it owed US$35 million (S$59
million).

Nortel and GTE wanted Lanka Bell to repay US$17 million of
the debts but Transmarco preferred to pump money into the
business. Lanka Bell, Mr Kloti reckons, needs another US$20
million to make it a credible telecoms player in Sri Lanka.
Transmarco's major shareholder Putera Sampoerna, who
controls HM Sampoerna, had indicated his willingness to
inject new capital into Lanka Bell.

"We've been negotiating with the creditors for well over
half a year and are not making any progress," said Mr
Kloti. If both sides don't come to an agreement, Nortel and
GTE may sue Lanka Bell and the worst case outcome is Lanka
Bell will have to be liquidated, he said.

Transmarco, Mr Kloti said, had opted to make full
provisions for Lanka Bell but not write it off completely
because "although Lanka Bell is in intensive care, it is a
patient worth saving. We go and visit it every day. If we
write it off, it means we wash our hands of it."

Mr Kloti maintains that Lanka Bell remains a viable
business. It generated free cashflow of $200,000 in October
and is adding on 50-100 fixed-line business customers a
week. Lanka Bell has about 7 or 8 per cent of Sri Lanka's
fixed line telephone market.  Looking ahead, Transmarco
expects its full year to be in the red as well because of
the huge loss in the first half. Its future plans include
disposing its 20 per cent stake in Meridien Hotel and
taking Hush Puppies to Indonesia.  (Business Times  04-Dec-
1999)


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

MEDIA OF MEDIAS: Creditor majority approves rehab
-------------------------------------------------
Media of Medias Plc said that its creditors controlling
83.2 per cent of outstanding debt have already approved the
restructuring plan proposed by the company.

The company expects to sign the deal with its creditors in
this month. However, it did not specify the amount of the
debts and other details of the plan.  Media Of Medias Plc's
debt restructuring plan will proceed under the supervision
of the Corporate Debt Restructuring Advisory Committee.  
(The Nation  03-Dec-1999)

SUNTEC PLC: SET could delist company
------------------------------------
Suntec Plc may be delisted from the Stock Exchange of
Thailand (SET) because its audited balance sheet for the
period ending June 30 filed with the SET on Nov 30 showed
negative shareholders' equity. While Suntec's shares are
suspended from trading, the company has the option to
submit a rehabilitation plan with the SET within a
specified period. Investors are advised to check on the
company's financial status periodically via the SET's
computer system.  (The Nation  04-Dec-1999)

SWEDISH MOTORS CORP.: Creditors approve rehab plan
--------------------------------------------------
Creditors and shareholders of Swedish Motors yesterday
signed an agreement to restructure debt totalling 3.4
billion baht.

The restructuring agreement will reduce the firm's total
debt to one billion baht through new capital injections,
sale of non-core assets and a debt-to-equity swap by
creditors.  After the restructuring, 24 Thai and foreign
banks will hold a 60% share in Swedish Motors.  Volvo will
inject 276 million baht in capital to take a 15% stake in
the firm, as well as pay 486 million baht for non-core
assets such as land and properties.

Debenture holders will have a 12% stake in the company,
while major shareholders will see their stake reduced to 2%
from 14%, with the remainder held by retail investors.
Ekamol Kiriwat, chairman of Swedish Motors, said the
restructuring deal succeeded as both creditors and
shareholders agreed to accept losses to deal with the
firm's problems.

Shareholder equity after restructuring will be 420 million
baht, compared with negative net worth of 1.7 billion now.
Geoffrey Rowe, a vice-president of Swedish Motors, said
Volvo would help the firm streamline its operations, boost
customer service and improve efficiency of its business
units.

He said the firm planned to freeze existing staff levels,
but would focus on human resource development for the
future.  Mr Ekamol said creditors also benefited in the
restructuring deal, gaining the chance at capital gains and
dividends from their shareholdings.  The restructuring
agreement calls for 1.7 billion baht of debt to be swapped
for equity held by creditors.

Swedish Motors will make a cash payment to creditors of 681
million baht, raised from the asset and capital injections
made by Volvo.  The remaining 1.048 billion baht in debt
will be restructured into three lots: 500 million baht
repayable in six years with interest of 5-7%, 123 million
due in one year at 5-7% and the remainder due in 6-7 years
at zero interest.  

"Today, SMC is a stronger and healthier company that is
ready to face the challenge of the future," said Philip
Winckle, from Skandinaviska Enskilda Banken, who
represented SMC bankers' steering committee. "Creditor
banks are now looking forward to witnessing the successes
of a fully restructured and reinvigorated SMC as a leading
player in Thailand's luxury car market."

Added SMC managing director Geoffrey Rowe: "SMC emerges
from this rehabilitation process with a new lease of life
and a new role as the exclusive retailer network for Volvo
cars in Bangkok. We are determined to do our utmost to
enhance both the quality and the speed of service to our
customers."  (The Nation, Bangkok Post  03-Dec-1999)

THAI OIL CO.: Tank-farm fire not to affect restructuring
--------------------------------------------------------
Thai Oil Co's plan to restructure its US$2.2-billion debt
will be unaffected by the massive fire at its Si Racha tank
farm, said Surakiart Sathirathai, executive chairman of the
company. Dr Surakiart said the restructuring plan would go
ahead as scheduled.

"The plan has been approved by the creditors, so we don't
expect the accident to affect the deal."

The company will hold a board meeting on December 16 to
approve the plan, and approval of shareholders will be
sought later this year. The company will file a suit to
seek protection from the Central Bankruptcy Court early
next year. The court will also appoint a planner.

"The process will be finalised around February or March
next year," said Dr Surakiart, who was at the burning tank
farm all through Thursday night to supervise the
firefighting.

Deja Tulananda, an executive director of Bangkok Bank, a
major creditor, said the fire would affect cashflow
projections of Thaioil slightly, but he expected little
impact on the debt restructuring plan.  He said the
company's refinery had not been affected, and that it
maintained sufficient capacity to maintain operations.

"If the company ceases operations temporarily, I think
there will be little impact on revenues. Thaioil is fully
insured for up to $2.5 billion against such disasters," Mr
Deja said.

However, while some other major creditors of the company
said the fire wouldn't have an immediate impact on the
company's debt restructuring programme, some creditors may
raise concerns over cashflow.

"Basically, there will be no immediate impact on their
debt-restructuring plans for now," said Masatsugu Nagato,
general manager of the Industrial Bank of Japan (IBJ), one
of the banks that head Thaioil's creditor steering
committee, "because I understand Thaioil is insured and the
damage will be covered by the insurance."

Mr Nagato said Thaioil had been negotiating with some
lenders who didn't participate in the talks led by Bank of
Thailand's debt restructuring advisory committee. Most of
them are foreign banks or banks extending subordinated
loans.  "Now it all depends on the insurance coverage but
the start of the restructuring plan may be delayed," he
said.

Robin Baker, managing director of Chase Manhattan Bank in
Hong Kong, a creditor and a financial adviser to Thaioil,
said: "The fire should have no impact on the debt
restructuring plan at all."

Mr Baker said Thaioil would be able to manage the
operations as the fire only damaged a small part of the
refinery. He also said that he has to consult with the
company for its assessment of the damage but the insurance
coverage should be appropriate.  Since a majority of the
creditors had agreed on the debt restructuring plan, it was
in everybody's interest to proceed with the programme as
soon as possible, Mr Baker said.

However, as the fire extended the damage to the debt-ridden
refiner, some creditors may also begin to take a second
look at the debt restructuring plan, IBJ's Mr Nagato said.

"I have to talk with the company to scrutinise the details
of the insurance policy to see if it compensates for
facility damage or sales damage," he said. "I can't deny
the possibility that some banks who either have or haven't
agreed to the debt restucturing plan may have a second look
at Thaioil's cashflow."

Lt Yodchai Chudsri, director of the central bank's debt-
restructuring committee, said executives were studying the
impact of the fire.  Creditors of Thaioil late last month
approved the $2.2-billion restructuring plan in principle,
but have yet to sign a formal agreement.

The plan would reduce Thaioil's debt-to-equity ratio to 2.8
times from six, with the 120-plus creditors swapping some
loans for an equity stake.  The Petroleum Authority of
Thailand, which holds a 49% stake in Thaioil, will inject
another $250 million into the firm-$149 million in cash and
$101 million by swapping trade credits for equity.
Remaining creditors will take a 49.99% stake in Thaioil
through a debt-to-equity swap.

Total debt will fall to $1.38 billion, payable over 10
years with a grace period of three years and an option for
a four-year extension. Interest rates will be set at Libor
(London Interbank Offered Rate) plus 1.6 percentage points.
Funds injected by PTT will be reserved to repurchase debt
from creditors who want to exit the plan at a 50% discount.
Dr Surakiart said the company's financial position would
not be affected by the fire as the total damage, even if
all of the nine tanks in the farm burned down, would not
exceed 500 million baht, which was fully covered by
insurance.

According to Noravat Suwan, director of the Insurance
Department, state-owned Dhipya Insurance Plc had four
policies for Thaioil: US$2.59 billion (about 101.3 billion
baht) for assets; $117 million (about 4.58 billion baht)
for product stocks; $196 million (about 7.67 billion baht)
for business disruption; and 15 million (about 941 million
baht) for public damage. The total coverage amounted to
114.51 billion baht, Mr Noravat said.

However, he said Dhipya Insurance had retained only 0.1% of
the total coverage and had reinsured the rest with leading
foreign insurance companies.  Dhipya Insurance shares fell
by three baht yesterday, to close at 50 baht. Somchainuk
Engtrakul, director of the Customs Department, in his
capacity as chairman of Dhipya Insurance, said the company
had adequate reserves to cope with the Thaioil disaster.
Dhipya Insurance and representatives of foreign reinsurance
firms are investigating the causes of the fire. Full
payment will be made if the cause is discovered to be an
accident.  (Bangkok Post  04-Dec-1999)

THAI TEL.& TEL.: Sticking points to delay rehab approval
--------------------------------------------------------
Thai Telephone & Telecommunication Plc's debt restructuring
plans will not be completed on schedule this year. TT&T and
its creditors had yet to agree on the plan, Apichart
Dharmasaroja, TT&T's vice-president in charge of marketing,
said yesterday.

Both sides had agreed on the main principle of converting
some debt into shares in TT&T, but there were several
smaller sticking points, he said.  TT&T is contracted by
the Telephone organisation of Thailand to provide 1.5
million fixed-line telephone connections in rural areas.
Some 1.14 million lines have been taken up, with 670,000
subscribers signed up this year alone. TT&T earns about 620
baht a month per connection.

A company source said TT&T's debts totalled 39 billion
baht-14 billion baht of which is owed to its major
equipment suppliers Alcatel, Ericsson and Sumitomo.
An analyst said that one reason for the delay in
restructuring debt was the requirement for TT&T to pay 43%
of its revenue from the fixed-line service to the TOT.

Mr Apichart added that the company had spent 420 million
baht to prevent Y2K problems and the move would help its
new caller ID service, now available in Phitsanulok, Chiang
Mai, Mae Hong Son, Sukhothai, Kam Phaeng Petch, Surat
Thani, Phattalung, Satun and Songkhla.  If the new service
proved popular, with 30% of the 290,000 telephone-line
subscribers in the nine provinces subscribing, TT&T would
expand the service to the North and South next year,
bringing the total number of potential subscribers to
700,000.

Meanwhile, TT&T's affiliate JT Mobiles Ltd (JTM), another
subsidiary under Jasmine International Plc, is withdrawing
from India. According to Songrit Kusomrosanana, president
of Jasmine International, Jasmine could not support further
funding of JTM and had transferred its interests and
management to Bharti Enterprises.

In return, Bharti will pay US$100 million to JTM to clear
debts and expand the Thai firm's GSM mobile phone network.
Jasmine International has sold its 40% stake in United
Telecom Ltd and 30.61% share of Priyaraj Electronics Ltd,
its only other interests in India.  (Bangkok Post  03-Dec-
1999)

TPI POLENE: Creditor majority agree with rehab plan
---------------------------------------------------
TPI Polene Plc (TPIPL) has reached a framework agreement
with a steering committee of creditors to restructure its
controversial US$1.3 billion debt. Last month, creditors
controlling 96 per cent of the debt rejected an earlier
plan, mainly over the issue of a new partner.

TPIPL convinced creditors controlling 60 per cent to 70 per
cent of the US$1.3 billion debt to agree in principal with
the revised plan, TPIPL CEO Prachai Leophairatana said.

The agreement features an equity swap, rollover to another
five years and the sale of a certain stake to a new
partner, the company's senior executive vice president
Orapin Leophairatana said.  Also part of the plan is a
reduction of debt write-off from 60 percent to 50 percent.
In addition, both creditors and the company have
compromised on issue of new a partner. The firm plans to
increase its capital to between US$180-270 million by
issuing new shares offered to a new strategic partner.

Proceeds from the sale of US$180 million capital increased
shares will be used to buy back loans through an auction
mechanism and the remainder will be utilised for completion
of its fourth cement production line.  TPIPL will convert
debts incurred from almost two years of unpaid interest
payments into equity at the same price as shares offered to
the partner.

However, Orapin did not reveal the exact price of the newly
issued shares. She said that TPIPL's current major
shareholder, the Leophairatana family, would have the right
to buy back the shares from creditors within a timeframe
agreed by both parties.

The company will begin servicing interest incurred from
this month to all creditors before Jan 5, on quarterly
basis.  For the remaining debts, it will be restructured
through the rescheduling of the repayment period to another
five years with an option of a three-year extension.

With regards to the new partner, Orapin said the company
would discuss the issue in detail with creditors again.
One creditor said after yesterday's meeting, that creditors
were satisfied with the revised plan because it was clearer
on its timeframe for the recapitalisation and use of funds.
The capital increase would be carried out within the next
17 months, he said.

Creditors were eligible to sell shares to those who offered
attractive prices, the source said. The plan does not limit
creditors to sell shares to just the Leophairatana family.
The source added that the plan allowed creditors to sell 30
per cent of their holdings in the first 13 to 19 months,
another 30 per cent from 20 to 24 months, and the balance
could be sold out later.

Despite significant progress in the debt-restructuring
plan, the firm still planned to file a petition to
rehabilitate the business under the bankruptcy law, because
it remained impossible to obtain 100 per cent support from
the creditors, the source said. Most creditors had rejected
the company's earlier plan because they were unhappy with
these two issues. The vote to decide TPI Polene's future is
postponed to Dec 16.  (The Nation  03,04-Dec-1999)


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