/raid1/www/Hosts/bankrupt/TCRAP_Public/991222.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

          Wednesday, December 22, 1999, Vol. 2, No. 249

                                           Headlines


* C H I N A  &  H O N G  K O N G *

AUS FONTI HOLDINGS LTD: Facing winding up petition
EASY CONCEPTS INT'L HOLDINGS: Posts 9-mo.loss
EVER RISING LTD: Facing winding up petition
GAINRICH GARMENTS LTD: Facing winding up petition
GENERAL CENTRAL TOY MFY.GROUP: Facing winding up petition
GOLDEN STAR PRESS LTD: Facing winding up petition
HONKO INT'L HOLDINGS: Narrows six-month loss
HUNG HING SCAFFOLDING ENGIN.: Facing winding up petition
SILVER UP COMPANY LTD: Facing winding up petition
WELL POOL INVESTMENTS LTD: Facing winding up petition
YEUNG WAI MAN KIU YIP CO.: Facing winding up petition


* I N D O N E S I A *

GARUDA INDONESIA: Wins debt payment rescheduling
TEXMACO GROUP: Co. head unfazed by Gov't loan probe


* J A P A N *

NIPPON TEL.& TEL.: Tranche planned to cover bank bailout
OSAKA GAS: Stock falling in second half
SUMITOMO BAKELITE CO.: Stock languishing, rehab under way
SUMITOMO RUBBER: Takes 26.3 Bln Yen loss on Goodyear tie-up
TOHO MUTUAL LIFE INSURANCE CO.: GE Capital to buy remainder


* K O R E A *

DAEWOO MOTOR: Hyundai attacks GM, urges block on bid
DAEWOO MOTOR: Workers issue strike warning
KOREA HEAVY INDUSTRIES: Labor strike paralyzing operations
SAMMI STEEL: Inchon Iron & Steel eyed as takeover candidate


* M A L A Y S I A *

CELCOM TIMUR: RAM keeps rating watch on debts
CHONGAI CORP.: Accepts offer to dispose of 3 subsidiaries


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

MABUHAY PHILIPPINES SATELLITE: Restructuring under way
MONDRAGON INT'L PHILIPPINES: Open to settlement with banks


* S I N G A P O R E *

CK TANG: Narrows annual loss
CYCLE & CARRIAGE: Stock plunges on notice of franchise loss


* T H A I L A N D *

SIAM CITY CEMENT: In talks to sell stake to US company
SIAM COMMERCIAL BANK: Aims for leaner look in restructuring
TELECOMASIA: Set to sign rehab agreement with creditors
THAI BARODA INDUSTRIES: Recapitalization part of rehab
THAI PETROCHEMICAL INDUS.: Creditors to accept rehab plan


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

AUS FONTI HOLDINGS LTD: 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
Neweast Development Limited for the winding up of Aus Fonti
Holding Limited, formerly known as Charterlink Holdings
Limited. A notice of legal appearance must be filed on or
before December 28.

EASY CONCEPTS INT'L HOLDINGS: Posts loss
--------------------------------------------------
Easy Concepts International Holding Limited has reported to
the Hong Kong Stock Exchange that it suffered an operating
loss for the nine-month period ending September 30 of HK$
10,520,000. That's down for the same period in 1998 from
HK$ 39,351,000. (Hong Kong Stock Exchange, Market News, 17-
Dec-1999)

EVER RISING LTD: Facing winding up petition
-------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 5, 2000 on the petition
of Lam Kwok Mun for the winding up of Ever Rising Limited.
A notice of legal appearance must be filed on or before
January 4.

GAINRICH GARMENTS LTD: 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 Jack Pot Computer Embroidery Factory for the
winding up of Gainrich Garments Limited. A notice of legal
appearance must be filed on or before January 11.

GENERAL CENTRAL TOY MFY.GROUP: Facing winding up petition
---------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 19, 2000 on the
petition of Chan Sin Iong for the winding up of General
Central Toy Manufactory Group Ltd. A notice of legal
appearance must be filed on or before January 18.

GOLDEN STAR PRESS LTD: Facing winding up petition
-------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for February 16, 2000 on the
petition of Mak Wai Hung for the winding up of Golden Star
Press Limited. A notice of legal appearance must be filed
on or before February 15.

HONKO INT'L HOLDINGS: Narrows six-month loss
--------------------------------------------
Electronic products maker Honko International Holdings' net
loss in the first half to September 30 fell 27% to $20.97M
from $28.92M a year earlier.  Turnover was $86.18M from
$78.31M previously.  Loss per share was 5.86 cents.  No
interim dividend was recommended.

HUNG HING SCAFFOLDING ENGIN.: Facing winding up petition
--------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 5, 2000 on the petition
of Au Wah for the winding up of Hung Hing Scaffolding
Engineering Co. Ltd. A notice of legal appearance must be
filed on or before January 4.

SILVER UP COMPANY LTD: Facing winding up petition
-------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 5, 2000 on the petition
of Chu How and Leung Pui Ling for the winding up of Silver
Up Company Limited A notice of legal appearance must be
filed on or before January 4.

WELL POOL INVESTMENTS LTD: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for February 2, 2000 on the
petition of Ng Sik Fa for the winding up of Well Pool
Investments Limited. A notice of legal appearance must be
filed on or before February 1.

YEUNG WAI MAN KIU YIP CO.: 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 Ip Ching Bun for the winding up of Yeung Wai
Man Kiu Yip Co. Ltd. A notice of legal appearance must be
filed on or before January 11.


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

GARUDA INDONESIA: Wins debt payment rescheduling
------------------------------------------------
President Abdurrahman Wahid said on Monday national flag
carrier Garuda Indonesia had reached an agreement with its
foreign creditors to reschedule its US$1.8 billion in debt.

Speaking at a breaking-of-the-fast gathering at the office
of the Centre for Strategic and International Studies
(CSIS), the President said the agreement allowed the
maturity of the national flag carrier's debt to be extended
to up to 16 years.

"Hopefully, this debt agreement will ease Garuda's
financial difficulties," the President said in a speech.
However, he did not disclose the details of the agreement.

The airline has embarked on a major overhaul of its
operations after nearly being grounded last year. Like
other Indonesian airlines, the carrier was hard hit by the
financial crisis that struck Asia in 1997.  Garuda sought
the aid of airline Lufthansa AG and Deutsche Bank, both of
Germany, in the middle of last year to help it resolve its
debt problems.

Garuda said recently it was seeking to restructure $380
million in short- term promissory notes, $600 million in
leasing agreements for six Airbus- 330s and another $100
million in long-term debt.  Garuda president Abdulgani said
earlier this month sweeping cuts in the airline's operating
costs would enable it to book a net profit of $34 million
(about Rp 238 billion) this year, its first profit in 10
years

At the gathering with CSIS executives, President
Abdurrahman voiced his opposition to a proposal to invite
Singapore Airlines (SIA) to manage Garuda, saying the
government should not allow a foreign airline to dominate
the national flag carrier.  Coordinating Minister for the
Economy, Finance and Industry Kwik Kian Gie said earlier
this month the government was considering inviting SIA to
help manage the ailing Garuda.  The proposal met strong
opposition from Garuda executives, who said the airline did
not need SIA's help. (The Jakarta Post  21-Dec-1999)

TEXMACO GROUP: Co. head unfazed by Gov't loan probe
---------------------------------------------------
Texmaco Group head Marimutu Sinivasan says he is
unconcerned by Indonesia's official probe into US$1.3
billion (S$2.2 billion) in controversial loans to his group
and is convinced he would be acquitted if brought to court.

"I am not concerned at all because I have not broken any
law," Mr Sinivasan told Reuters in an interview. "I can
defend in court because I have done nothing wrong. I have
taken and I am going to pay back the loans."

Mr Sinivasan has been banned from travelling overseas and
been named a suspect in an investigation into the deal. But
he says he regards his status as a suspect as
"questionable" and is pushing ahead with ambitious plans
for the future.  Texmaco will thrive beyond Indonesia's
economic crisis, he insists, launching a new line of trucks
and tractors for export in alliance with unspecified
strategic foreign partners. He is aiming for 90 per cent of
the components to be made in Indonesia.

"I will survive. I am very confident," he said, grinning.
"Because I have not made any mistakes."

Well-connected Texmaco Group is one of Indonesia's largest
companies.  Asked whether he had spoken recently to former
President Suharto about the loans, Mr Sinivasan said: "I
don't think it's a relevant question. According to me it's
not because there is nothing to do with Suharto about
this."

Lawyers for Mr Suharto have insisted the former leader did
nothing wrong. Mr Sinivasan said he had written to Mr
Suharto, but said the problem stemmed from liquidity
problems at state banks as the economic crisis erupted.

"I wrote him a letter. He was the president. Many people
wrote him a letter at that time," Mr Sinivasan said. "I
believe that I have not done anything wrong. At that time
the chief executive of this country was the president and
even the finance minister couldn't decide on many things.
Not like now."

Earlier this month Mr Sinivasan was summoned for
questioning by the attorney-general's office. He said it
went well. "They asked me about loans which I have had and
I gave them all the information. They have to make a
decision," he said.

Minister of Investment and State Enterprises Laksamana
Sukardi has said the deal violated the central bank's legal
lending limit and included a pre-shipment trade facility
despite a rule allowing only post-shipment facilities.
The controversy triggered a run on deposits at the group's
PT Bank Putera Multikarsa. Last week the Indonesian Debt
Restructuring Agency (Ibra) stepped in after liquidity
problems and appointed its own management team.

Mr Sinivasan said he was not worried about this, either.
"They (Ibra) are supervising. So things are under control."

Mr Sinivasan repeated his earlier pledge to pay back the
loans in question in full, saying his firm has cash flow
and some of the loans have not even fallen due. He declined
to specify the full level of Texmaco Group's indebtedness,
saying he did not have the figures to hand. Debt
restructuring should take around six more months, he said.
As part of restructuring moves, Texmaco plans to list three
firms on New York's Nasdaq exchange next year. (Singapore
Business Times  20-Dec-1999)


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

NIPPON TEL.& TEL.: Tranche planned to cover bank bailout
--------------------------------------------------------
The Ministry of Finance plans to sell another one million
shares in Nippon Telegraph & Telephone (NTT), the world's
largest phone company, in the year starting April 1 to help
fund the government's bank bailout plan.

The sale would cut the government's stake from 53 per cent
to 46.7 per cent.  The ministry expects NTT shares to be
trading at 1.799 million yen (about HK$135,284) at the time
of the sale, meaning revenue of 1.4 trillion yen after
paying commission and other expenses.

The plan to sell a sixth block of NTT shares underscores
the ministry's confidence in the resilience of Japan's
stock market. Previous sales have been postponed to prevent
declines in stock prices.  The benchmark Nikkei 225 has
risen 30 per cent since the beginning of the year. NTT
shares have almost doubled for the same period.

The ministry suspended any sale of its NTT shares for 10
years from 1988 until it sold one million NTT shares last
year in a fourth block.  Last month, it sold 952,000 shares
in NTT, raising 1.56 trillion yen to help bail out the
nation's troubled banks.  The shares were over-subscribed
seven times. (South China Morning Post  21-Dec-1999)

OSAKA GAS: Stock falling in second half
---------------------------------------
Osaka Gas Co. (9532) stock has been falling in the second
half of this year. The downward trend accelerated in
November, and on Monday the share price hit a year-to-date
low of 242 yen.

In February, the company bought back 27.7 million of its
shares. "That sent the share price higher on expectation
that it would benefit shareholders, but the stock lost
momentum as investors shifted their focus to information-
communications issues," says a Tokyo Marine Asset
Management Co. official.

Disappointed investors unloaded the shares as an additional
buyback failed to materialize. Osaka Gas President Akio
Nomura says, "We are ready to conduct another buyback at
any time, but we want to make a decision by taking into
consideration how to benefit our customers."

Gas sales for the current fiscal year ending March 2000 are
expected to increase 5.8% from the fiscal 1998 level, due
to an aggressive marketing strategy. But pretax income will
likely decline 13% to 38 billion yen, a result of price
cuts in February and rising oil prices.  In October, the
company drew up a long-term business plan aiming to double
pretax profit for its group companies, including those left
off of the consolidated balance sheet, to 120 billion yen
by fiscal 2010.

"Given the 2% dividend, the stock could be bought at any
time," says a Nikko Securities analyst. The market
consensus is that the downside risk is limited. (Nikkei 21-
Dec-1999)

SUMITOMO BAKELITE CO.: Stock languishing, rehab under way
---------------------------------------------------------
Sumitomo Bakelite Co. (4203) shares started an uptrend in
March 1999, and hit a record high of 1,235 yen on August
18.  They headed back down after that, however, and have
recently been holding in a range between 900 and 1,000 yen.

The earlier rise in the stock price had been supported by
expanding global demand for semiconductors, as sales of
semiconductor sealant and integrated circuit products
increased.  However, the stock is languishing. Its price-
earnings ratio of 27 is well below the 35 PER of competitor
Hitachi Chemical Co. (4217).

An analyst at a foreign brokerage says dissolution of
interlocking shareholdings is the only reason for the
stock's weakness. Bargain hunters may soon move in and push
the stock back to the upside.

"Profit is stable thanks to restructuring and higher sales
for electronic materials," says an analyst at New Japan
Securities, who gives the stock his top rating of "1".

Consolidated pretax profit in the half to September 30 was
up 33% from a year earlier to 3.6 billion yen. For the full
year, it should be up 98% to an all-time high.  The company
is pursuing a comprehensive restructuring program to boost
its return on assets. It has spun off its vinyl-chloride
compound business and formed a joint venture with a unit of
Mitsubishi Chemical Corp. (4010).

The company is also cooperating with Mitsui Chemicals Inc.
(4183) on an adhesive for plywood. The restructuring
program is due to be completed in the second half of next
year. (Nikkei  21-Dec-1999)

SUMITOMO RUBBER: Takes 26.3 Bln Yen loss on Goodyear tie-up
-----------------------------------------------------------
Sumitomo Rubber Industries Ltd. (5110) announced Monday
that it is recording a 26.3 billion yen loss on the mid-
December liquidation of two U.S. units as it joined forces
with Goodyear Tire and Rubber Co.

The two agreed in February to form a tire alliance spanning
Japan, the U.S. and Europe. Manufacturing, marketing, R&D
and procurement activities were transferred to the new
joint venture on Sept. 1.  Sumitomo Rubber will receive a
2.8 billion yen payment relating to the business
integration from Goodyear within the year. It previously
received a 37.9 billion yen payment from Goodyear on Sept.
1.  These alliance-related entries were already factored
into Sumitomo Rubber's earnings forecast for the fiscal
year ending Dec. 31. (Nikkei  21-Dec-1999)

TOHO MUTUAL LIFE INSURANCE CO.: GE Capital to buy
     -----------------------------------------------------------
GE Capital Corp.'s agreement Friday to buy failed Toho
Mutual Life Insurance Co. could trigger a long-postponed
cleanup of the Japanese life-insurance industry and clear
the way for further foreign investment in the sector.

GE Capital, which had already snapped up Toho's sales
operations last year, will buy the rest of the business for
240 billion yen (2.33 billion), Toho's administrators said.
A spokesman for GE Edison Life Insurance Co., the GE
Capital unit that will take over Toho, confirmed the
agreement but declined to give further details until the
deal is completed.

The purchase concludes the mop-up of century-old Toho, a
midsize insurer that collapsed this year under the weight
of thousands of old, unprofitable policies. Uncertainty
about the fate of the company had weighed on the insurance
market.  GE Edison initially had agreed to take over only
Toho's sales operations, and maintained it had no legal
responsibility to take care of the rest of Toho and its
huge losses. Toho had a net capital deficit of 650 billion
yen as of the end of September, the company's
administrators said Friday.

That is 70% more than was estimated in June, when the
insurer failed.  To help cover the portion of the Toho
cleanup not covered by GE capital, a unit of General
Electric Co. of Fairfield, Connecticut, Japan's life-
insurance association will draw 360 billion yen out of its
year-old policyholder protection fund to cover Toho's
liabilities. That move will just about deplete the fund and
is likely to force the government to dip into the public
purse to replenish it.

But once government money is unleashed, the cleanup of
Japan's troubled life-insurance industry can begin in
earnest, and more foreign investors will be emboldened to
buy their way into the world's biggest insurance market,
industry officials said.

"This will likely pave the way for further investment in
the Japanese life-insurance sector," said Walter Keenan, an
executive director at Morgan Stanley Dean Witter, who
helped broker the purchase of another midsize Japanese
insurer to France's AXA SA. "Japan is becoming a hot sector
in M&A for large international life-insurance companies."

The biggest problem facing Japanese life insurers is what
is called "negative spread." Most insurers are making less
money from investments than they need to pay out on their
policies. "If you valued their liabilities at market value,
all the insurers would be insolvent,' said Mitsuhiro Fukao,
a professor at Keio University who sits on a government
panel that discusses way to solve the insurance industry's
problems.

The government is mulling introduction of legislation that
would make it possible for insurers to rewrite their
contracts before they fail, if they apply for corporate
reorganization under the bankruptcy law.  But money will be
needed to cover some of the companies' losses, so lawmakers
are thinking about chipping in 400 billion yen in public
money and 100 billion yen in added contributions from
private insurers.

A government-funded insurance rescue could force companies
to clean up their acts, just as Japan's bank bailout
precipitated a wave of mergers and reorganizations among
the country's biggest lenders.

"The use of public money will set the stage for a radical
revision of the insurers' profitability structure and risk
management practices,' said Keiko Mizuguchi of
PricewaterhouseCoopers, who advises Japanese life insurers
on how to improve their credit ratings. "It will be a
milestone." (The Asian Wall Street Journal  20-Dec-1999)


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

DAEWOO MOTOR:  Hyundai attacks GM, urges block on bid
-----------------------------------------------------
Hyundai Motor Co. criticized General Motors Corp.'s bid for
Daewoo Motor Co. on Sunday and said it would like a chance
to buy one of Daewoo's European factories.

"Domestic firms must be allowed to bid for Daewoo Motor,"
Hyundai's president, Lee Kye Ahn, told the Yonhap news
agency. "We are especially interested in Daewoo's plant in
Poland."

Yonhap quoted him as saying Hyundai Motor would like to use
Daewoo's plant in Poland as its production base in Europe.
Hyundai's bid underlines growing disputes over how to
rescue Daewoo Motor.  Last week, GM officially proposed
taking over Daewoo Motor's plants at home and abroad.
Daewoo has 20 production bases overseas.

Mr. Lee opposed GM's bid, saying it would not be "good for
the development of our domestic auto industry.  GM's
acquisition may seriously damage the domestic car-parts
industry," he added.

Meanwhile, labor and business representatives in South
Korea continued to line up against a potential deal with
GM.  The Federation of Korean Industries, a lobbying arm
for business groups, has warned that South Korea would
become a mere production base for GM. The federation said
GM "is certain to adopt an aggressive low-pricing strategy
to drive Hyundai Motor out of business," adding that GM's
bid was aimed at gaining easier access to China.

Unionized workers at Daewoo Motor are threatening to strike
if the government proceeds with a plan to sell it to GM, a
labor leader said.

"We are strongly protesting the sale to either GM or other
foreign companies," said Kim Jo Hyun, a member of Daewoo
Motor's labor union, who is coordinating a possible strike.
"We'll take steps to fight against it."

He said the union would meet Tuesday to work out its
position.  Members of Daewoo Motor's labor union said they
wanted the government to acquire the automaker and turn it
around. Selling it to a foreign company would undermine the
competitiveness of the South Korean auto industry, they
said.  More than 10,000 union workers at Daewoo Motor also
are protesting an overseas sale on the grounds it could
lead to job cuts.

Daewoo Motor's sale depends mostly on talks between local
and foreign creditors of Daewoo Group, who are mired in a
five-month squabble over how much foreign creditors can
recover.  Local creditors, many of them state-run banks,
recently accused the committee heading the debt-recovery
process for Daewoo's foreign creditors of jeopardizing the
effort with its rejection of the latest debt buyout
proposal.

The committee last week recommended that Daewoo Group's
more than 200 foreign creditors reject a proposal from
domestic banks to buy $6.7 billion of foreign debt owed by
four key units of the industrial group, including Daewoo
Motor. Daewoo Group owes at least $73 billion.  Many of the
foreign loans are concentrated in Daewoo Motor and Daewoo
Corp., the group's biggest and most indebted unit.
(International Herald Tribune  20-Dec-1999)

DAEWOO MOTOR: Workers issue strike warning
------------------------------------------
Union workers at debt-ridden Daewoo Motor are threatening
to strike if the government proceeds with a plan to sell
South Korea's No 2 car-maker to foreigners, according to a
labour leader.

The threat comes a few days after General Motors, the
world's largest car-maker, requested the Korean Government
negotiate exclusively with the United States company,
rather than hold an auction of Daewoo.

"We are strongly protesting the sale to either GM or other
foreign companies," said Kim Jo-hyun, a member of Daewoo
Motor's labour union, who is co-ordinating a possible
strike.

He said the union will meet tomorrow to work out its
position.  Steven Harris, GM's Detroit-based vice-president
for global communications, declined to comment.  A labour
strike at Daewoo Motor would affect negotiation attempts by
the government and Daewoo's Korean creditors to sell the
car-maker to settle debt problems at the car-maker and 11
other units of Daewoo Group.

GM, Ford Motor and DaimlerChrysler - three of the world's
top five car-makers - are in a race to acquire the Korean
car-maker, which can produce 1.07 million cars at home.
Overseas, it has a production network, with plants in
India, Vietnam, Poland, Romania, Iran and Egypt.  GM has
had links with Daewoo Motor for almost 20 years, including
car-part supplies and equity investments.  GM's Louis
Hughes visited Korea earlier last week to meet with
Daewoo's main creditors and government officials.

Daewoo Motor's labour union said they wanted the government
to acquire the car-maker to turn it around. Selling it to a
foreign company would undermine the competitiveness of the
Korean car industry, they said.  More than 10,000 union
workers at Daewoo Motor also are protesting an overseas
sale on the grounds it could lead to job cuts.  Daewoo
Motor's sale depends mostly on talks between local and
foreign creditors of Daewoo Group, who are mired in a five-
month squabble on how much foreign creditors can recover.
(South China Morning Post  20-Dec-1999)

KOREA HEAVY INDUSTRIES: Labor strike paralyzing operations
----------------------------------------------------------
The protracted labor strike of the Korea Heavy Industries
and Construction Co. (Hanjung) has forced shipbuilding and
power generation facilities manufacturers to a near halt.

In particular, the delivery of ships to foreign owners has
been delayed and a variety of power generation facility
projects won by Hanjung have been suspended.  Industry
sources said yesterday that Daewoo Heavy Industries on
Thursday sent a letter to the union chief of Hanjung
demanding the supply of equipment for 22 ships as soon as
possible.

"Unfortunately, we are unable to hand over ships despite a
considerable lapse of time from the contracted deadline.
This has brought a great loss of money and credibility,
Daewoo's letter said. "We will be obliged to request that
the labor union compensate for the loss in violation of
pertinent laws if the strike protracts further."

A Daewoo official said his company has failed to receive
engines and other equipment needed for 12 ships, including
a 300,000-ton oil tanker ordered by Peninsula Star Holding
of Saudi Arabia.  Another shipbuilder, Hanjin, was to
receive engines for a 4,000-TEU containership by the end of
October but they have not yet received the engines.

Hanjung has also failed to supply nuclear reactors to
Yonggwang plant, pipes to Tangjin thermal power plant and
other power generation facilities of a U.S. firm and a
Chinese power plant.  A Hanjung official said that Hanjung
has suffered 155.3 billion won in production losses,
including 40 billion won in direct losses. (The Korea Times
17-Dec-1999)

SAMMI STEEL: Inchon Iron & Steel eyed as takeover candidate
-----------------------------------------------------------
Creditors of Sammi Steel Co. yesterday picked Inchon Iron
and Steel Co. as primary candidate for the takeover of the
insolvent stainless steelmaker, a creditor bank official
said.

At a consultative meeting, the creditors - including the
Korea Asset Management Corp., Korean Exchange Bank and
Korea Development Bank - decided to negotiate exclusively
with Inchon Iron and Steel on the sale of Sammi, the
official said.  The creditors will sign a memorandum of
understanding with Inchon Iron and Steel within the week to
start negotiations on the takeover price, he said.

"Creditors plan to wrap up negotiations as early as
possible and sign a final deal on the sale of Sammi Steel
around the end of next month," the official said.

Inchon Iron and Steel is said to have offered around 460
billion won ($407 million) for Sammi Steel whose domestic
overseas liabilities amount to 1.3 trillion won.  Given
Inchon Iron and Steel's offer price, creditors will have to
give Sammi Steel debt write-offs or debt-for-equity swaps
for the takeover talks to succeed, analysts said.

Sammi Steel's creditors have so far purchased its
convertible bonds worth 89.2 billion won, but they are
opposed to assume liabilities of Sammi's North American
subsidiaries - Sammi Atlas in Canada and Sammi Altec in the
United States.  The creditor bank official said he expects
negotiations between Inchon Iron and Steel and Sammi's
creditors to proceed smoothly.  However, if negotiations do
come apart, creditors will start talks with other
prospective buyers.

Established in 1966, Sammi Steel went into insolvency in
1996, while its stainless bar and pipe businesses were sold
to Pohang Iron and Steel Co. in February 1997.  Sammi's
assets now stand at 497.1 billion won and the company
posted 165.1 billion won in sales revenues for the first
half of this year.

Inchon Iron and Steel's turnover is estimated to reach 1.7
trillion won this year, 25 percent of which comes from its
stainless steel business.  Industry sources anticipate
Inchon Iron and Steel's takeover of Sammi would create
considerable synergy effects stemming from the sharing of
technologies and rationalization of production.  (Korea
Herald  21-Dec-1999, Digital ChosunIlbo  20-Dec-1999)


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

CELCOM TIMUR: RAM keeps rating watch on debts
---------------------------------------------
The P3 rating on Celcom Timur (Sarawak) Sdn Bhd's RM100mil
revolving underwritten facility (1997/2002) continues to be
on Rating Agency Malaysia Bhd's (RAM) Rating Watch with a
developing outlook.

RAM said in a statement the rating was first put on watch
in August 1999 following the Rating Watch action on Celcom
Timur's major shareholder and customer, Celcom (M) Sdn Bhd.
Celcom was still in the midst of a restructuring exercise
which was targeted for completion by the endof the year,
RAM said.  The agency said it would conduct a thorough
assessment of the business and financial risk profiles of
Celcom upon finalisation of the restructuring exercise as
well as its impact on the credit risk profile of Celcom
Timur.

Celcom Timur is a 60:40 joint venture between Celcom and
Sarawak Electricity Supply Corp (Sesco).  Its principal
business is that of installing, operating, managing,
maintaining and marketing of the fibre-optic transmission
network in Sarawak.

RAM said Celcom contributed about 98% to Celcom Timur's
income in the financial year ended Dec 31, 1998.  It said
payment by Celcom had been slow and this had adversely
affected Celcom Timur's cashflow position.  Although there
had been some improvements in payments from Celcom between
August and November 1999, the total amount paid by Celcom
of RM6.53mil was small in comparison to the amount owed of
RM92mil.

RAM said the underlying strength of Celcom Timur's cashflow
would depend on its ability to recover the amount owed by
Celcom and the rate of future collection. (The Star 20-Dec-
1999)

CHONGAI CORP.: Accepts offer to dispose of 3 subsidiaries
---------------------------------------------------------
Chongai Corp Bhd announced it has accepted a letter of
offer from R&R Formula Pte Ltd (RRF) of Singapore to
acquire the company's entire equity in three of its
subsidiaries.

Chongai said in a statement that RRF had proposed to
acquire 803,432 shares of RM2.26 each or 70% interest in
Rest & Relax (Fashion) Pte Ltd, for RM20,000 cash.
RRF also proposed to acquire 70,001 shares of RM1 each or
70% interest in Rest and Relax (M) Sdn Bhd for RM30,000
cash as well as 7,000 RM1 shares or 70% stake in R&R
Manufacturing (M) Sdn Bhd for RM10,000 cash.

Chongai said the proposed disposal would enable the group
to consolidate its group operations within Malaysia and
conserve its cash resources for its manufacturing
operations and its Malaysian retail operations.  (Star
Online  20-Dec-1999)


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

MABUHAY PHILIPPINES SATELLITE: Restructuring under way
------------------------------------------------------
Mabuhay Philippines Satellite Corp. has its P2.4 billion
debt restructuring under way, and expects to finally turn
profits or at least break even next year upon its
completion.

Manuel Pangilinan, president and chief executive officer of
the Philippine Long Distance Telephone Co. (PLDT) which
owns 61 percent of Mabuhay, said that within a month or
two, everything would be finalized.

"It's underway. Hopefully, within this month or next month,
it will be okay. Once the problem is addressed, I think
Mabuhay will already earn next year," he said.

Mabuhay launched its $232-million Aguila II satellite into
space in August 1997 and started commercial operations in
January the following year. However, it has not generated
any profit and even incurred a loss of P169 million as of
September 1999.  The situation was attributed by PLDT
primarily to the regional crisis which made foreign-
denominated loans more difficult to pay for due to the
sudden jump in the peso-dollar exchange rate as well as
lowered the demand for expensive satellite-based services.

Mabuhay launched its $232-million Aguila II satellite into
space in August 1997 and started commercial operations in
January the following year. However, it has not generated
any profit and even incurred a loss of P169 million as of
September 1999.  However, Mabuhay entered into a
restructuring agreement with EximBank on Jan. 8, 1999 for
an amended payment terms of the loans.

The major provisions of the restructuring agreement include
principal payments in 18 semi-annual installments of P6.3
million due and payable on Jan. 15 and July 15 of each year
starting 1999; and interest rate at 6.6 percent per annum
beginning July 1999 and on each payment date.  Mabuhay is
also currently negotiating with a syndicate of seven local
banks for a separate restructuring agreement on other terms
of the loan, except for the principal payment term which
has already been amended.

Under an Omnibus Credit and Security Agreement entered into
by Mabuhay to obtain credit facilities, the banks will
issue standby letters of credit with an aggregate stated
value not exceeding $115 million ($4.5 billion) in favor of
EximBank as security and a term loan in Mabuhay in the
aggregate amount of $65 million (P2.5 billion).  In return
Mabuhay has, among others, assigned to the banks its rights
as collateral for the credit facilities.

Pangilinan said that the newly installed management team in
Mabuhay is doing its best to improve the operations of the
firm through aggressive marketing of Agila II's transpender
capacity as well as through the provisions of effective
financial control.  Agila II is designed to transmit
international communications links for both
telecommunications and broadcast companies in the region.
(The Philippine Star 20-Dec-1999)

MONDRAGON INT'L PHILIPPINES: Open to settlement with banks
----------------------------------------------------------
Mondragon International Philippines Inc. (MIPI) said over
the weekend that it is open to an amicable settlement with
its creditor banks.

MIPI said in the preliminary conference brief it submitted
to the Securities and Exchange Commission (SEC) that for as
long as the terms and conditions of the settlement are
"just and reasonable under the premises," it will be
willing to sign a compromise agreement with its creditor
banks, principally Asian Bank Corp., Far Eat Bank and Trust
Co. (FEBTC) and United Coconut Planters Bank (UCPB).

The company is reportedly hoping it can work out an
acceptable arrangement with the three banks before it
conducts its annual stockholders meeting scheduled on Feb.
21, 2000.  MIPI and the creditor banks were called by the
SEC to a hearing to discuss the possibility of an amicable
settlement.

In its brief, MIPI outlined the issues it wants to be
threshed out in the meetings. These include whether or not
the banks (respondents) have a right to demand the holding
of stockholders' meeting and to call for elections given
the fact that they are not stockholders of MIPI; whether or
not the holding of the alleged stockholders meeting last
Sept. 20 was null and void; whether or not the individual
petitioners continue to be the lawful members of the board
of directors of MIPI in spite of the election of a new set
of directors and officers during the alleged stockholders
meeting last Sept. 20, among others.

MIPI in an earlier disclosure with the SEC that it needs at
least until February 21, 2000 to be able to firm up a
refinancing plan with a US-based trust company.  MIPI said
the stockholders meeting scheduled last Nov. 15 couldn't be
held without the SEC ruling on the validity of the Sept. 20
stockholders meeting, also the election of the new set of
board of directors will pre-empt the SEC panel in its
resolution of the case and render moot and academic the
pending proceedings.

MIPI added it had to deal first with the threatened
issuance of a writ of execution by the Regional Trial Court
of Angeles on or after Nov. 15, 1999 and the possible
consequent hostile takeover bid of a Malaysian group. MIPI
stressed that postponing the meeting was a self-
preservation measure meant to protect creditors and
stockholders from the possibility that its creditor banks
have worked out an arrangement with the Clark Development
Corp. and the Malaysian group to effect a takeover of its
hotel and leisure arm, Mimosa Leisure and Resort Corp. "for
a song" to the prejudice of other creditors and
stockholders.

MIPI chairman and chief executive officer Antonio Gonzalez
went to the US recently to negotiate with Ideal Funding
Inc. (IFI) and an international time share company, Resort
Suites International (RSI) to firm up a business plan which
it projects to generate $65 million or about P2.65 billion
in the next three years.  While it is still open to a
settlement, Mondragon has not withdrawn its motion filed
with the SEC opposing moves by its creditor bank to reverse
the injunction order of the SEC. (The Philippine Star 20-
Dec-1999)


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

CK TANG: Narrows annual loss
----------------------------
Retailer CK Tang continues to stem the flow of red ink,
slashing its interim group net loss to $1.4 million from
$7.4 million a year earlier.

It credited the smaller loss to better gross margins,
savings in operating expenses and the absence of last
year's translation loss of $1.57 million arising from US
dollar denominated notes.  For the six months ended Sept
30, group turnover dipped 5.8 per cent to $87.3 million,
due mainly to the closing of Tangs Studio at Ngee Ann City.
Loss per share fell to 1.2 cents from 10.3 cents. Net
tangible asset backing per share fell to 85 cents from
$2.91, the latest figure based on 116.8 million shares
following a rights issue. There was no interim dividend,
just like last year.

CK Tang said that in Singapore, the completion of the first
phase of reconfiguration and renovation of its flagship
Orchard Road store is seeing significant increase in
customer traffic and turnover.  Barring unforeseen
circumstances, the operating profit before interest and
amortisation of the local operations should continue to
recover in the second half year, it added.

"Although Malaysian operations are not expected to be
profitable in the current year, operating conditions are
expected to improve further following the major renovations
at the Star Hill Shopping Centre," it said.

The group's borrowings and debt securities as at end-
September stood at $148.6 million, up 11.2 per cent from
$133.58 million six months earlier.  The bulk of the latest
figure, or $140.2 million, is repayable after one year.
(Business Times  21-Dec-1999)

CYCLE & CARRIAGE: Stock plunges on notice of franchise loss
-----------------------------------------------------------
Cycle & Carriage slumped in the stock market yesterday
following last Friday's announcement that it would lose its
Mercedes Benz wholesale franchise to Daimler-Chrysler and
that its distributorship agreement would be renewable
annually by the German car maker after five years.

The C&C stock plunged almost 18 per cent as the market
greeted the news with dismay, with many analysts writing
off the company's long-term prospects as a distributor of
the German marque.  It closed $1.20 down at $5.90, just off
its day-low of $5.85, on a volume of 1.76 million shares.

From Jan 1, 2000, C&C will give up its wholesale business
to Daimler-Chrysler. And from Jan 1, 2001, the Singapore
company will hold the exclusive distribution rights in
Singapore for all aspects of the Mercedes Benz operations
for five years after which the rights would be
automatically renewed for periods of one year each.  If the
wholesale business had been taken away in 1999, it would
have wiped off some $17 million from C&C's bottom line for
the year. Brokers, analysts and fund managers were
uniformly pessimistic about the immediate prospect for the
stock price and the company.

"If the loss of the import and wholesale business is not
bad enough, C&C now faces the prospect of having to apply
to have its distributorship franchise renewed every year,"
said one institutional dealer. "No fund manager is going to
invest in a stock where five years down the road they could
lose their remaining Mercedes Benz franchise."

Analysts reckon the loss of the wholesale business would
wipe out anywhere from 15 to 20 per cent of the company's
profits from the year 2001.  DBS Securities has cut its
FY01 earnings forecast for the company by 15 per cent to
$90.6 million or 38.7 cents per share to reflect the
changes.

"At current valuation, we do not see any compelling reason
to buy the stock and we are maintaining our underperform
recommendation," the investment house said in a report
yesterday.
Most analysts see little near-term upside for the stock. "I
have called a sell on the stock, and give it a fair value
of around $6.50 or so," said Vickers Ballas' motoring
analyst, Terence Tan.

Some analysts see the C&C development as being generally
negative for motoring stocks.  "This just illustrates that
the sector is exposed to the whims of its principals," said
Lai Yeu Huan of JM Sassoon. "And they are people with
different priorities."

The other counters with motoring interests include Tan
Chong International (Nissan), Inchcape (Toyota), Sime
Singapore (BMW), Wearnes International (Jaguar) and ST
Engineering (Opel).  (Business Times  21-Dec-1999)


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

SIAM CITY CEMENT: In talks to sell stake to US company
------------------------------------------------------
Siam City Cement (SCCC), Thailand's second largest cement
maker, is close to concluding a deal to sell its entire 50
per cent stake in its subsidiary, Gulf Electric, to a US
power producer.

Based on the par price, SCCC will gain Bt875 million in
offloading its stake to the US firm. Selling its ownership
in Gulf Electric is part of its business re-orientation
plan to exit from its non-core related businesses.
An industry source said the negotiation is expected to be
finalised in February next year and that the United States
company is the only investor negotiating with it.

The source also declined to identify the US firm but said
that it has investments in power projects in the country.
US-based Mission Energy, the joint venture partner of Gulf
Power, had previously expressed interest to acquire SCCC's
shares (in Gulf Electric) but the deal was not concluded as
business conflicts were anticipated to occur later on.
Gulf Electric and Mission Energy holds a 60:40 joint
venture in Gulf Power respectively and its is one of the
seven power plant developers under the Independent Power
Producer (IPP) scheme.

With a total investment cost of over US$800 million, Gulf
Power will develop a 700-megawatt coal-fired power plant in
Prachuap Khirikhan. The balance of Gulf Power's share is
held by Lanna Lignite, another subsidiary of SCCC.  SCCC,
with about 30 per cent stake held by Swiss cement maker
Holderbank, had previously calculated to earn at least Bt1
billion from selling its entire stake in Gulf Electric. It
hopes to complete its re-orientation exercise and
concentrate on its core-business by the first quarter of
2000 when the domestic cement market is expected to rebound
back to a demand volume of 20-21 million tonnes.

Under the leadership of Holderbank, SCCC has slowly but
surely, reverted to focusing on cement and concrete
business. To date, about 75 of its subsidiaries and
diversified interests have either been shut down or sold.
The company also plans to exit from the porcelain business
when its subsidiary Royal Porcelain is listed on the stock
exchange in the next three or four years.

On Gulf Power, the source said the company would have to
seek additional funds as the construction cost of the power
plant have increased by 10 per cent due to a delay in the
project's implementation.  It has been held back by two
years now due to the environmental concern for villagers
living in around the construction area. The project is now
pending approval from the Cabinet.

"The company would seek extra loans from the export-import
banks of Japan and the US which are still committed to
provide the total US$600 million to finance the project.
From the rough calculation, it has to seek additional US$80
million to cover the rising cost," said the source.

Despite the extra financing, debt to equity ratio of the
project will remain at 3:1.  The project has to meet a 2001
deadline set by Electricity Generating Authority of
Thailand while the power plant is scheduled to begin
operation in October 2003, the source said. (The Nation
20-Dec-1999)

SIAM COMMERCIAL BANK: Aims for leaner look in restructuring
-----------------------------------------------------------
Siam Commercial Bank (SCB) will have reduced the number of
its subsidiaries and affiliated companies to fewer than 20
by next June from about 100 companies at the end of 1998,
according to the bank's president Jada Wattanasiritham.

To become leaner and more efficient is the goal of a major
restructuring plan of the country's fourth largest bank,
which was hurt badly by investments in companies that were
mostly unprofitable when the economic situation turned
upside down in mid-1997.  Jada did not say how many
subsidiaries and affiliates have been liquidated since the
plan was announced in mid-1999.

"At present, more than 10 companies have their business
activities frozen in preparation for later liquidation,"
she said.

The bank went on an investment spree prior to the economic
crisis, taking interests in a wide range of endeavours,
from real estate, finance, services, leasing, and
consultancy to commerce, hospitals, construction, food,
energy, communication and warehousing.  Under the
restructuring plan, investments will be consolidated.

Jada categorised the investment in three classes. First are
investments in service industries that support its banking
business including legal and appraisal firms and research
companies. This group will be limited to six or seven
firms, Jada said.  Second are companies conducting finance-
related businesses from which the bank is prohibited, such
as leasing, factoring and investment management.
Subsidiaries and affiliates in this group will be merged
into five to six companies. This group includes SCB Asset
Management, one of the country's top three fund companies.

The last category include non-core businesses in which the
bank has no expertise such as media and construction
businesses. The bank is both a creditor and shareholder of
iTV Plc.

"We'll gradually dilute the investment in this last group
of companies as we prefer to be only lenders to them [not
shareholders]," she said.

As a result of the dilution, senior bank executives who
serve in subsidiaries and affiliates were called back to
the head office a few months ago.  Meanwhile, the bank has
recently welcomed its new executive chairman Vichit
Suraphongchai who replaces Chumpol Na Lamlieng. With his
long experience in banking, Vichit is expected to have more
time than Chumpol to concentrate on the policies of the
bank's major shareholder, the Crown Property Bureau,
together with the management team.

"I'd like to see SCB as a commercial bank that can step
into the modern world successfully," Jada said. "SCB and
other major banks have a lot of local customers compared to
foreign competitors, but are our services good enough to
satisfy the customers?  Anyway, the bank's prime customers
are Thai since foreign customers may be too difficult for
us to reach. Large Thai corporations are the customers that
we must keep in hand."

However, the president said the bank would also have to do
its best in the retail lending business since this group of
clients can be improved to include more small and medium-
sized businesses and large companies.  Individual house
buyers will be a main target for the bank. According to
Jada, Siam Commercial Bank expects to increase its market
share in mortgage lending from 16 per cent currently to 20
per cent in 2001.

"We know mortgage loans very well, and we also know
developers very well. We have track records dating back for
five years for around 2,000 developers. A lot of developers
have evaporated during the crisis, leaving fewer than 20 in
the business," she said.

The bank also expected to double its market share of the
hire purchase business to 20 per cent in the near future.
In this area, Siam Leasing Co Ltd, a subsidiary of the
bank, will continue playing a key role to achieve the goal.
Since Siam Commercial Bank successfully raised Bt65 billion
in May, the bank's business outlook has largely improved.
The bank is the first Thai commercial bank that could set
aside full loan-loss provisions, 18 months before the
deadline at the end of next year.

Non-performing loans, which are still a big headache at
other Thai banks, have fallen to 24 per cent at Siam
Commercial Bank following the write-off of Bt61 billion
this year. More non-performing loans should also be cut
following the establishment of an asset management company.
With huge capital and non-performing loans lower than
peers, the bank is set to grow. (The Nation 20-Dec-1999)

TELECOMASIA: Set to sign rehab agreement with creditors
-------------------------------------------------------
Telecomasia is almost ready to sign a loan restructuring
agreement with its creditors, a source at one of TA's
creditor banks told Business Day.

The source said the agreement could be signed as early as
December 22, adding that all issues, including supplier
credit, have been ironed out to the company's satisfaction.
Ajva Taulananda, TA Chairman of the Executive Committee,
said the date for signing the restructuring agreement is
close but has not yet been set because certain details of
the restructuring plan are still being worked on.

He said a successful conclusion to TA's debt restructuring
would not only benefit the company but will have positive
effects on a broader scale.

"TelcomAsia is a good business model which creates
confidence among foreign as well as domestic investors," he
said.

The source at the banking institution also told Business
Day that the Bank of Thailand (BOT) has been instrumental
in bringing all sides together to help reach an agreement.

"Even though some creditors may not agree with all the
changes made to the restructuring plan, particularly the
part having to do with supplier credit, they will
eventually come around because the central bank has played
the role of mediator effectively and made clear its desire
to see the loan restructuring agreement signed before the
end of the year," the source said.

The source added that some creditor institutions have not
yet presented the latest conditions of the agreement to
their respective boards for approval, so the December 22
date may be delayed slightly.  The TA board on October 1
signed a Memorandum of Understanding (MOU) with the
company's creditors to restructure loans worth 63.1 billion
baht, including about 49.6 billion baht in secured loans.

The MOU calls for creditors to agree to extend the loan
repayment period with the first payment to be made in the
second quarter of 2003 and all loans paid up six years
later.  As for unsecured loans, amounting to about 13.46
billion baht, TA would pay 5.61 billion baht in cash and
6.71 billion baht through the use of promissory notes.
(Business Day  20-Dec-1999)

THAI BARODA INDUSTRIES: Recapitalization part of rehab
------------------------------------------------------
Thai Baroda Industries Ltd (TBIL) recently raised capital
of Bt625 million by issuing 6.25 million new ordinary
shares at Bt100 apiece. The capital raising is part of the
company's restructuring plan. The purpose of the capital
increase is to accommodate the debt for equity conversion
by Thai financial creditors, one of which is IFCT whose
conversion portion is 768,000 shares at the par value of
Bt10.

The Industrial Finance Corporation of Thailand said that it
has acquired 187,500 shares in, increasing its shareholding
to 10.92 per cent of the company's registered capital worth
Bt875 million.  (The Nation  21-Dec-1999)

THAI PETROCHEMICAL INDUS.: Creditors to accept rehab plan
---------------------------------------------------------
Creditors of Thai Petrochemical Industry (TPI) have agreed
to accept the company's loan restructuring plan, a source
at TPI Creditors Loan Restructuring Committee told Business
Day.

The source said that the accepted plan calls for TPI to
increase capital by $1 billion as proposed by TPI Chief
Executive Officer Prachai Leophairatana, adding that there
is a requirement for TPI to sign the loan restructuring
agreement this week - before the capital increase.
Prachai earlier objected to having TPI sign a debt
restructuring agreement prior to increasing capital by $1
billion due to concerns of a takeover by creditors.

The original restructuring plan approved by a majority of
TPI creditors in February calls for increasing capital
after signing the restructuring agreement along with a
payment on principal of $700 million in three years.
TPI has an outstanding loan balance of about $3.3 billion -
owed to 148 creditors - with monthly interest payments of
around 130 million baht.

The source at TPI's creditors committee said lenders hoped
to have TPI sign the agreement this week, having set
December 23 as the date.  The source expressed an opinion
that the International Finance Corporation - of TPI's major
creditors - was likely to begin bankruptcy proceedings
against TPI if the signing of the loan restructuring
agreement was delayed too long, adding that other creditors
would take similar action.

"The creditors and Mr Prachai have met each other half way
in drafting the loan restructuring agreement. First the
agreement is signed, and then capital in increased. There
is no need to wait a long time to increase capital. But if
Mr Prachai does not agree, then bankruptcy proceedings by
IFC are certain, and the other creditors will do likewise,"
the source said.

A source at Bangkok Bank (BBL) agreed that signing the loan
restructuring agreement was the optimal solution for all
parties, and that settling matters in bankruptcy court
would be the only choice left if the agreement was left
unsigned.  Thai creditors have generally hesitated to file
bankruptcy suits against their borrowers, fearing time-
consuming and costly proceedings, and wishing to avoid the
unchartered waters of the new bankruptcy law.

Prachai said the signing date is near, but won't be this
month.  He said early next month is a more likely time for
the agreement to be made official, adding that creditor
banks have agreed to TPI's capital increase proposal after
Finance Minister Tarrin Nimmanahaeminda and Bank of
Thailand Governor Chatu Mongol Sonakul stepped in to help
bring all sides together.

"Creditor banks agreed to have TPI restructure loans
concurrently with increasing capital. This can be done
without bringing in new strategic partners at this time,"
he said.

He said the capital increase will be $1 billion, with a
debt-to-equity swap of $500 million.  The case of TPI's
loan restructuring has long been considered a very
important one to work out because of the size of the
company's debts and its important role as an industry
leader. As well, restructuring TPI loans would make a big
dent in non-performing loans (NPLs) in Thailand's financial
system.  Analysts said that as the economy recovers. TPI is
in an excellent position to benefit. (Business Day 20-Dec-
1999)


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

Troubled Company Reporter -- Asia Pacific is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Trenton, NJ USA, and Beard Group, Inc., Washington,
DC USA. Darryl Henning, Managing Editor, Feliz Ordona and
Cristina Pernites, Editors.

Copyright 1999.  All rights reserved.  ISSN: 1520-9482.

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

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

                     *** End of Transmission ***