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T R O U B L E D   C O M P A N Y   R E P O R T E R

                  A S I A   P A C I F I C

         Wednesday, December 29, 1999, Vol. 2, No. 253

                         Headlines

*C H I N A  &  H O N G  K O N G*

THREE GORGES PROJECT: To Issue 8 Bln Yuan of Bonds


*I N D O N E S I A*

FISKARAGUNG: Creditor to Sell Assets
PT ASTRA: December 1999 Profile
MODERNLAND: Restructures $ US142 Mln in Debt
SUCACO: Court Endorses Plan with Creditors


*K O R E A*

DAEWOO CORP: Creditors to Spurn Write-Off Plan
DAEWOO CORP: Seoul to Extend Talks with Foreign Creditors
DAEWOO CORP: Stock Trading Suspended
LG ELECTRONICS: Reorganizes Operations
KORAM BANK: S Korean Finance Body Penalises Bank Execs
KOREA FIRST BANK: S&P Upgrades Credit Rating


*M A L A Y S I A*

JASATERA CONSTRUCTION: Set to Restructure
KEPPEL CORP: Addresses Concerns of Shareholders
KL GLASS: F&N to Acquire 100 Pct Equity Interest in Glass Maker
METROPLEX: RAM Downgrades Bonds Rating
NCK CORP: To Complete Restructuring in 18 Months


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

CAPITOL WIRELESS: Extends Collateral Base for Restructure


*S I N G A P O R E*

THAKRAL: Accor Buys All Seasons for A$29 Million


*T H A I L A N D*

UCOM: Plans Share Sale to Pay $450m in Foreign Debt


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

THREE GORGES PROJECT: To Issue 8 Bln Yuan of Bonds
--------------------------------------------------
BEIJING -- China's eye-catching Three Gorges Water Conservancy
Project has so far spent 43 billion yuan. To ensure sufficient
capital for its second-phase construction, the Yangtze River
Three Gorges Project Development Corp., the proprietor of the
gigantic project, plans to issue in the next five years Renminbi-
denominated bonds worth 8 billion yuan in total.

It is reported that the Three Gorges project will cost an
estimated 90 billion yuan (May 1993 price), with 50 billion yuan
for the key water control works and 40 billion yuan for
resettlement of replaced residents. However, allowing for
inflation and interests factors, the actual total investment is
expected to reach 203.9 billion yuan upon completion of the
project by 2009.

Of the 43 billion yuan injected, 16 billion yuan were used for
the resettlement of displaced residents; 5 billion yuan were used
to pay interests and 2.4 billion yuan were used to purchase
engineering machinery.

The corporation has exerted great efforts so far this year to
explore for more channels to raise money.

One capital source for the project is what is known as the Three
Gorges Fund of some 100 billion yuan. It is collected through a
0.004-0.007 yuan/kWh surcharge on power consumption nationwide.
The dull electricity market, due to a relatively regional
oversupply, has hampered the pooling of fund.

In the first half of 1999, the corporation raised 3.4 billion
yuan by issuing corporate bonds, borrowing from domestic
commercial banks and foreign financial institutions and other
means.

According to Li Yong'an, deputy general manager of the
corporation, financing is reliable for the project. Another major
source of capital comes from profits made by Gezhouba, so far the
largest hydropower station in China. The State has raised price
of electricity supplied by the station to power grids by 0.02
yuan/kWh.

Export credit on equipment it purchases is also a channel of
financing for the corporation.

It is reported that 14 generating units imported for the project
at a combined contractual value of 740 million US dollars funded
by government export credit for the generator manufacturers. Li
said that the corporation will use more export credit and provide
greater opportunities for foreign partners.

Besides, the China Development Bank has pledged to provide an
annual 3 billion yuan for the Three Gorges Project in the 1994-
2003 period; and the Industrial and Commercial Bank of China
(ICBC), the China Construction Bank (CCB) and the Bank of China
have signed credit extension agreements with the water
conservancy development company, by which ICBC and CCB will each
grant 4 billion yuan loans to the project in the 1999-2003
period.

Rumors have it that the Three Gorges development corporation will
go public both domestically and overseas. Lu Youmei, the company
general manager, said that the issue would be considered only
after the year 2003 when the project starts generating
electricity. (Asia Pulse 23-Dec-99)


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

FISKARAGUNG: Creditor to Sell Assets
------------------------------------
JAKARTA -- Creditors of the bankrupt Indonesian company
Fiskaragung Perkasa were not interested in taking over the salt
producer and planned to sell off its fixed assets to a third
party through an auction or a direct offer, The Jakarta Post
reported.

One of the creditors' lawyers said the total value of
Fiskaragung's assets would not cover its total debts worth US$
40.5 million and Rp18 billion.

Fiskaragung was declared bankrupt in late November by the Jakarta
Commercial Court after it failed to reach a debt restructuring
agreement with its creditors during a debt payment suspension
(PKPU) period granted by the court.

PKPU is the standstill period during which an indebted company
must come up with a debt-restructuring proposal. It must be
approved by a majority vote of creditors.

PKPU allows the company a maximum 270-day period to negotiate the
debt-restructuring agreement with its creditors; failure to reach
an agreement within the period will lead to a declaration of
bankruptcy by the court.

Ten foreign creditors jointly filed a bankruptcy suit against
Fiskaragung in the Jakarta Commercial Court in May for failure to
repay $ 29 million in matured debts. The foreign creditors are
from Hong Kong, South Korea, Malaysia and Singapore.
(Asia Pulse 23-Dec-99)


PT ASTRA: December 1999 Profile
-------------------------------
Name: PT Astra International Tbk

Status: Diversified public company

Year established: 1957

Employees: Around 100,000 people as of December 1998

Address: Jl. Ir. H. Juanda No. 22, Jakarta 10120

Telephone: (62-21) 231 2555

Fax: (62-21) 345 3358

Website: http://www.astra.co.id

Listed on (code): Jakarta Stock Exchange (ASII)

Date listed: April 4, 1990

IPO price: Rp14,850

Closing price: Rp3,825 (Dec 21, 1999)

MAIN BUSINESS: Astra International (AI) is a holding company with
various business activities, including automotive, financial
services, heavy equipment, agribusiness, electronic, consumer
goods, chemical, infrastructure, etc.

RECENT DEVELOPMENTS:

-December

Offered high-achieving senior executives an option to buy company
shares at discounted prices. The option would be carried out over
three years, starting this year with 32.4 million stocks on offer
- representing 1.3 percent of current outstanding shares.

Expected the value of its assets to reach Rp3 trillion (US$ 430
million) in 2002. Astra hoped to be able to accumulate about Rp1
trillion every year from sales of company assets.

The Indonesian Bank Restructuring Agency (IBRA) formally agreed
to a group of investors headed by Gilbert Global Equity Partners
(GGEP) and New Bridge Capital to buy IBRA's share of the
country's largest automotive company Astra.

OWNERSHIP (MAJOR SHAREHOLDERS):

- Sampoerna Astra Corp. (15.01%)

- Nusamba (10.00%)

- Indo Artsa Boga (9.270)

- Gentala Sanggrahan (9.25%)

- Toyota Motor Corporation (8.26%)

- Delta Mustika (7.16%)

- Norbax Inc. (8.15%)

- International Finance Corp. (2.44%)

- Pictet and CIE (1.49%)

- Kashmir Ltd (1.37%)

- SSBB S STR BNK Client (1.36%)

- Chase Bank (CI) Nominees PTE Ltd (1.32%)

- Gajah Tunggal Mulia (1.16%)

- Somers Nominees (Far East) Ltd (1.02%)

- Others (less than l%) (22.740)

FINANCIAL RESULTS (Unaudited):
(in billions rupiah)

9M99 9M98 FY98 FY97

-----------------------------------------------------------------
Revenues 10,130.0 11,300.4 11,292.2 15,872.1

Expenses 9,617.2 13,917.3 13,669.5 15,800.9

-----------------------------------------------------------------

Income (loss) before

income tax 505.8 (2,616.9) (2,377.3) 71.2

Income tax 16.4 (662.3) 125.4 220.2

-----------------------------------------------------------------

Income (loss) before

minority interest 489.4 (1,954.6) (2,502.7) (149.0)

Minority interest (159.0) 110.5 68.5 (129.7)

-----------------------------------------------------------------

Net income (loss) 330.4 (1,844.1) (2,434.2) (278.7)

-----------------------------------------------------------------
(Asia Pulse 23-Dec-99)


MODERNLAND: Restructures $ US142 Mln in Debt
--------------------------------------------
JAKARTA -- Indonesian property developer PT Modernland Realty Tbk
(JSX:MDLN) will restructure debts worth Rp996 billion (US$ 142.3
million) through a debt-to-asset settlement and bond conversion
until April 2000.

Modernland chief commissioner Sungkono Honoris said his company
had been negotiating with the Indonesian Bank Restructuring
Agency (IBRA) over the restructuring of bank debts under the
Modern Group, either under IBRA supervision or outside the IBRA.

The unsettled debts of the Modern Group's banks which are not
under IBRA supervision total Rp169.6 billion, Rp29.5 billion of
which is expected to be settled in 2000 through a debt-to-asset
mechanism.

Meanwhile, the company's debts, amounting to Rp826.4 billion,
including Rp393.2 billion in debts of banks under the IBRA
supervision, are scheduled to be settled through a debt-to-
convertible bond mechanism. (Asia Pulse 24-Dec-99)


SUCACO: Court Endorses Plan with Creditors
------------------------------------------
The Commercial Court endorsed a commitment plan between Sucaco
(SCCO) and its creditors about its bankruptcy lawsuit. SCCO's
total debt and interest expense amounted to US$ 7.79 ml. The news
will give a good effect to SCCO. Meanwhile, SCCO's performance is
good. Net sales in 9M99 of Rp 234 mn or increased by 11,96
percent compared to 9M98 of Rp 209 mn. Net profit was booked at
Rp 4.4 bn compared to net lose of Rp 743 ml within the same
period last year. Recommendation BUY
(BNI Securities Daily Research 22-Dec-99)


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



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


DAEWOO CORP: Creditors to Spurn Write-Off Plan
----------------------------------------------
SEOUL - Daewoo Group's local creditors will reject a debt write-
off proposal from foreign lenders aimed at breaking a two-month
impasse over the group's US$6.7 billion (S$11.2 billion) overseas
debt, the Korean government said.

Foreign creditors said last Friday they were prepared to write
down an average 41 percent of their exposure to Daewoo's four key
units, a week after they refused to accept Korea's request to
write off 66 percent.

Foreign and local creditors - many of them state-owned - have
been in a deadlock on recovery rates for Daewoo loans, as the
government tries to keep the industrial group, once Korea's
second largest, from collapsing under US$73 billion of debt.

Today, the Korean government postponed a decision on the fate of
Daewoo Corp, the biggest and most indebted affiliate, until next
month. The government earlier said it would decide this month
whether to put the Daewoo unit into bankruptcy should local
creditors fail to garner an agreement with foreign lenders on
debt rescheduling. (Singapore Business Times 27-Dec-99)


DAEWOO CORP: Seoul to Extend Talks with Foreign Creditors
---------------------------------------------------------
The government will delay placing the ailing Daewoo Corp. under
court receivership to continue talks with foreign creditors until
late January, Lee Hun-jai, chairman of the Financial Supervisory
Commission, said yesterday.

Lee made the remarks during a breakfast meeting with heads of
local commercial banks, which he arranged to review the progress
of debt-workout programs for Daewoo affiliates.

Lee and the local bankers reportedly decided to delay the
decision for three to four weeks to make room for further talks
with foreign lenders, despite the big differences between local
and foreign creditors on recovery ratios for loans to Daewoo
firms.

Last week, foreign creditors rejected an average loan recovery
ratio of 34 percent proposed by domestic creditors, demanding 59
percent instead.

With the gap so large and the Seoul government determined to
stick to its original offer, it is unlikely that the two sides
will reach a compromise unless foreign creditors back down
somewhat. A failure for either side to yield ground will mean
that Daewoo Corp. will be placed under court receivership.

"Even if the government and Daewoo's local creditors place Daewoo
Corp. under court receivership in a worst case scenario, it is
still necessary for the government to give the talks another
chance to let the international community know that we are doing
our best to resolve the debt issue out of the court," a
government official said.

Also at the meeting, FSC Chairman Lee asked the bankers to try to
provide financial support to Daewoo affiliates' subcontractors
and suppliers so that they won't face a liquidity squeeze around
the end of this year.

Lee also said that the government is in no hurry for the sale of
Daewoo Motors Co. and will stick to the limited open bidding
format in order to give eligible aspiring buyers ample
opportunities.

In addition, he told the bankers that local banks will not need
to excessively provision against loan losses, encouraging them to
write off nonperforming loans (NPLs) as soon as possible to lower
NPL ratios.

A senior official at the Financial Supervisory Service said that
the financial watchdog agency would revise regulations on banks'
loan-loss write-offs. (Korea Herald 28-Dec-99)


DAEWOO CORP: Stock Trading Suspended
------------------------------------
SEOUL -- The Korea Stock Exchange suspended stock trading of
Daewoo Corp. (KSE:03810) in the morning session Thursday after a
rumour that the troubled firm has begun proceedings to file for
court receivership.

The KSE asked Daewoo to disclose its position regarding the
matter, and the trading suspension will continue until Daewoo
confirms or denies the report.

If the report is confirmed, Daewoo will go on the KSE's watchlist
and trading will resume the day after the list is made public.

If it is denied, trading of Daewoo stocks will resume from the
following session. (Asia Pulse 23-Dec-99)


LG ELECTRONICS: Reorganizes Operations
--------------------------------------
LG Electronics yesterday announced a major organizational
reshuffle, giving more autonomy and responsibility to three
strategic business units in charge of display devices, multimedia
and home appliances.

The company also established a new team to manage Internet
shopping and direct marketing via home shopping channels and e-
mail.

The corporate reorganization is in line with the company's new
digital management drive, aimed at enhancing competitiveness in
core businesses and streamlining its organization.

"The three units will be operated as companies within company,
with more right to make decisions and more responsibility for
their performance," an LG spokesman said.

The company also took over the mobile phone marketing operation
from LG Information and Communication, while establishing two new
divisions dealing with parts business and overseas marketing
under the display devices business unit. In addition, it
introduced a new planning team to handle reform of its overall
operation and management of overseas branches.
(Korea Herald 28-Dec-99)


KORAM BANK: S Korean Finance Body Penalises Bank Execs
------------------------------------------------------
SEOUL -- The Financial Supervisory Service (FSS) said Friday that
it had slapped punitive measures on 19 former and incumbent
senior executives of KorAm Bank (KSE: 16830) for reckless lending
to weak companies.

KorAm Vice President Zareh Misserlian, Managing Director Park
Suk-won and former heads Hong Se-pyo and Kim Jin-man received
warnings, while 14 others faced tougher penalties.

The FSS said the 19 people had caused the bank to lose 66 billion
won (US$ 58 million) by extending loans to 12 debt-ridden
companies without proper collateral and another 1.2 billion won
by investing in securities in Southeast Asia issued by a non-
reliable company.

KorAm is a joint venture with Bank of America as a major
shareholder. (Asia Pulse 24-Dec-99)


KOREA FIRST BANK: S&P Upgrades Credit Rating
--------------------------------------------
SEOUL -- Standard and Poor's said Friday that it has upgraded the
long-term credit rating of Korea First Bank from "BB-" to "B."

The company also upgraded the bank's short-term credit rating
from "C" to "B" and evaluated the long-term credit rating
prospects as "stable."

Standard and Poor's said Korea First's credit ratings were
upgraded as the Korea Deposit Insurance Corp. signed a contract
to hand over the bank's 51-percent stake and management to
Newbridge Capital. (Asia Pulse 24-Dec-99)


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

JASATERA CONSTRUCTION: Set to Restructure
-----------------------------------------
KUALA LUMPUR -- The new management of construction firm Jasatera
Bhd, needs at least a year to restructure the troubled company,
including settling debts amounting to RM100 million, managing
director Koo Woon Kee said Friday.

The company would now focus on gaining the confidence of the
public and the banks, apart from putting it back on the right
footing.

The company's financial position was badly affected by several
events in the past two years, including failed projects which
resulted in the company running into huge debts.

As a result, the new management which took over the reign of
Jasatera in 1998 was now facing the heavy task of rebuilding the
company, he said.

Koo said Jasatera was currently negotiating with creditors to
work out a solution without the company having to seek legal
protection to restructure its debts.

"With almost RM100 million owing to the financial institutions,
the finance charges alone are already killing the company. We
have no choice but to restructure our debts," he told reporters
after the company's annual general meeting here.

As for its new projects, Koo said the company had secured a
contract to build two blocks of apartments worth RM24 million in
Selangor, where construction would begin in January next year.

However, due to Jasatera's difficulties in getting bank
borrowings, vice chairman Koo Yuen Kim is giving a personal loan
of RM5 million to help the company start the construction.

The vice chairman had earlier injected another RM5 million to the
company's coffer to help its operations.

"As a new company, we want to resume our projects but because of
Jasatera's financial status, the banks are not giving loans. So
we have no alternative but to pump in our own money into the
company," Koo Woon Kee said.

In addition, Jasatera has already signed a Memorandum of
Understanding with another company for construction work in Sabah
worth around RM65 million.

Apart from the two projects, Koo said several new projects were
also in the pipeline and that Jasatera was currently negotiating
with several parties to secure them.

On the other hand, the company has also launched a number of
legal actions against the previous management of Jasatera in its
bid to recover over RM80 million of its earlier investment.
(Asia Pulse 24-Dec-99)


KEPPEL CORP: Addresses Concerns of Shareholders
-----------------------------------------------
Keppel Corporation, responding to investor concerns that it has
become a mere holding company since it disposed of its shipyard
business early this year, is charting new directions that will
see it launch into a new core business.

In addition, it is seeking approval from the authorities to buy
back 10 per cent of its shares, in a move to enhance shareholder
value.

These indications were given by KepCorp's executive chairman-
designate Lim Chee Onn in response to recent criticisms from
investors that KepCorp was lacking direction and action, and was
apparently doing nothing to arrest the decline in its share
price.

When asked by BT to respond to the recent spate of letters in
BT's Mailbag, Mr Lim said: "The board and management of Keppel
Corporation appreciate the concerns of our shareholders and would
like to assure them that the company's fundamentals are sound and
all its core businesses are doing well." Mr Lim, who will succeed
current executive chairman Sim Kee Boon on Jan 2, said the
management was "poised to take KepCorp into the new millennium
with fresh directions".

"We are currently reviewing our business and strategic plans and
will unveil them when ready."

He added: "One thing is clear, Keppel Corp shall not be a passive
holding company. Our subsidiaries shall over the next few months
finalise their respective business plans."

When pressed, Mr Lim declined to reveal details, but did not rule
out information technology and e-commerce as a new focus for
KepCorp, one of Singapore's biggest conglomerates.

Another hint was that the new core activity would support its
strategic business units in their development, while at the same
time enhancing shareholder value.

Following the sale of its ship repair and shipbuilding operations
to Hitachi Zosen to form Keppel Hitachi Zosen -- which KepCorp
now has a controlling stake in -- KepCorp has become just a
holding company of listed subsidiaries. These include companies
in financial services, marine engineering, shiprepair,
telecommunications and property.

Mr Lim also reiterated what the group said when it announced its
1998 financial results -- that KepCorp is poised to turn in
another set of sterling results for the current financial year.

KepCorp's share price has been sliding in the last few months,
hitting a low of $3.78 late this month from a high of over $6 in
July.

With 787 million shares outstanding, the share buyback plan would
call for the purchase of 78.7 million shares. At the share's
current level of around $4, this would mean an outlay of about
$314.8 million.

This should please market analysts who have felt that KepCorp was
not radical enough in its restructuring programme, although the
company has rationalised many of its operations and unravelled
its previously unwieldy cross-holdings ahead of schedule.
"Keppel Corp does not have a compelling story to tell," was a
typical comment from one analyst.

The criticisms have come despite the fact that the group reported
a robust 31.5 per cent rise in net earnings to $86 million for
the latest interim period to end-June, and looks set to surpass
analysts' expectations of its financial performance for the
current year.

The consensus full-year forecast for KepCorp just before the
interim results were announced was $146.9 million, according to
Barra Global Estimates of corporate earnings. Individual
estimates for the group ranged from a very conservative $111.2
million by Nomura Securities to $175 million by DBS Securities.
Following the sale of its shiprepair and shipbuilding operations,
KepCorp has been left without a core business and has businesses
in different sectors at various stages of maturity and different
growth and earnings potential.

Mr Lim said: "We could also take all our existing listed
companies private and then Keppel Corp would become a company
with substantial businesses. But then it would only be returning
to a structure where it would be difficult to have our various
businesses to be more focused and to further grow their listing
statuses."

It is for this reason that KepCorp is establishing a new core
business, both within its existing subsidiaries and outside of
the group to provide "the compelling story".
(Singapore Business Times 27-Dec-99)


KL GLASS: F&N to Acquire 100 Pct Equity Interest in Glass Maker
---------------------------------------------------------------
KUALA LUMPUR -- Fraser & Neave Holdings Bhd (F&N) is to acquire
100 percent equity interest in Kuala Lumpur Glass Manufacturers
Company Sdn Bhd (KLGM) from Nylex (Malaysia) Bhd for up to RM60
million cash.

In a filing to the Kuala Lumpur Stock Exchange today, Commerce
International Merchant Bankers Bhd (CIMB), said on behalf of F&N
that the stake comprises 10.4 million of RM1.00 each together
with 8.8 million shares arising from the capitalisation of up to
RM8.8 million loans in the books of KLGM.

F&N and Nylex signed a conditional sale and purchase agreement
for the deal today.

CIMB said that the proposed acquisition would provide synergy to
F&N group's existing glass operations in Johor Baharu and Ho Chi
Minh City, Vietnam.

It would also provide an opportunity to expand the export base of
its glass operations and better service its customers in the
central and northern regions of Malaysia through increased
production capacity, it added.

CIMB said that the proposed acquisition was expected to be
completed within 120 days from the sale and purchase agreement
date and was not expected to materially affect the earnings of
the F&N group for the financial year ending Sept 30 next year.
(Bernama 27-Dec-99)


METROPLEX: RAM Downgrades Bonds Rating
--------------------------------------
KUALA LUMPUR -- Rating Agency Malaysia Bhd (RAM) has downgraded
the long term rating of Metroplex Bhd's RM310 million (US$
1_RM3.8) Redeemable Bank Guaranteed Bonds to BBB2(bg) from
BBB1(bg).

In a statement released Thursday, RAM said the downgrading was a
result of the transfer of the bank guarantee obligations from The
Pacific Bank Bhd to Bank Utama (Malaysia) Bhd, which carried a
long term rating of BBB2.

The BB2(bg) rating showed unconditional and irrevocable guarantee
by the consortium of financial institutions based on the weakest
link approach, which, in this instance, was Bank Utama's rating,
it added.

Under the bank guarantee structure, all risks associated with the
bond issue were expected to be absorbed by the guarantors.

The backing of the bank guarantee, in effect, enhances the credit
risk profile of the bond issue beyond that of the issuing
company's inherent or stand-alone credit risk.

Metroplex is an investment holding company while its subsidiaries
are mainly involved in casino operations, property development,
property investment, hotel and leisure, construction, quarrying
as well as trading in building materials.
(Asia Pulse 23-Dec-99)


NCK CORP: To Complete Restructuring in 18 Months
------------------------------------------------
KUALA LUMPUR -- NCK Corporation Bhd has targetted an 18-month
time frame to complete its proposed rationalisation exercise with
its financial institution creditors, said executive director
Hamzah Zainudin Friday.

He said that the company was now negotiating with its bankers for
the proposed schemes.

According to the company's annual report, the proposed schemes
included an issue of equity-linked investment to several of the
company's bankers as well as capital raising exercise.

The report also said that the proposed restructuring exercise
should provide an avenue for the company to restructure its
working capital requirements, streamline its operations into
profitability and increase its share capital to a size that was
more reflective of the group's operations.

"We hope to give a detail announcement of the proposed
rationalisation exercise within three to four months," he told
reporters after the company's annual general meeting here.

NCK is basically a trader of building materials including
hardware products, and manufactures aluminium and wire products
which are mostly supplied to construction projects.

Its customers are basically housing developers.

Hamzah said that the company also has a number of plans to try to
restructure and revive the company, including the proposed sale
of its landed property assets.

In this regard, he said two uncompleted residential projects in
Port Dickson and the Klang Valley have been identified for
disposal.

Hamzah said that the proposed rationalisation exercise would
entail a debt restructuring scheme.

"In addition, we are also negotiating with a few parties who are
interested to work together to help revive NCK and enhance its
business," he said.

Hamzah, however, declined to elaborate on this.

Concerning the company's cashflow problems, he said it was due to
the failure of property developers to pay the company for
products supplied.

He said that these developers had faced difficulties when their
projects were either deferred or scrapped.

As result of non-payments, NCK could not pay in full its debts to
the banks he said, adding that the company's borrowings now stood
at RM428 million plus a RM36 million term loans.
(Asia Pulse 24-Dec-99)


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

CAPITOL WIRELESS: Extends Collateral Base for Restructure
---------------------------------------------------------
MANILA -- Satellite link provider Capitol Wireless Inc and its
creditors have agreed in principle to expand the collateral base
for the company's debt restructuring plan from 600 million pesos
(US$ 14.74 million) to 1.6 billion pesos. Chief finance officer
Joel Aguilar said the firms had to complete mortgage trust
indenture details, which had been saddled with about 736.5
million pesos in short and long term loans. Capwire has
accumulated overdue interest payments of 70 million pesos. The
biggest creditors and their respective exposures to Capwire are
Land Bank of the Philippines, 300 million pesos; Development Bank
of the Philippines, 156 million pesos; Philippine National Bank,
115 million pesos and Urban Bank, 100 million pesos.
(Asia Pulse 23-Dec-99)


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

THAKRAL: Accor Buys All Seasons for A$29 Million
------------------------------------------------
MELBOURNE -- Leading international hotel operators, Accor Asia
Pacific, has paid A$29 million to acquire Thakral's six-hotel All
Seasons chain in Australia.

According to "The Australian Financial Review", the deal sees
Accor's Australian network bolstered to 90 properties for the
French-backed hotelier.

Accor, already Australia's largest hotelier with 10,093 rooms,
will add a further 3,825 rooms and another brand with the All
Seasons name to its stable.

Thakral paid A$3 million for the All Seasons chain in 1994 and
the group had been discussing a sell-off for the past six months.

With the accommodation sector increasingly driven by global
distribution and marketing systems, small hoteliers are being
squeezed out of the race for business.

Thakral in Australia had to decide whether it wanted to be hotel
managers or owners long-term and it chose to concentrate on
owning the assets.

The deal, subject to final documentation and government
approvals, allows Thakral to sell any of the properties managed
by Accor with vacant possession, but Accor will receive a rebate.

Thakral expects to book a A$10 million abnormal profit in the
year ending June 30, 2000. (Bernama 27-Dec-99)


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

UCOM: Plans Share Sale to Pay $450m in Foreign Debt
---------------------------------------------------
UNITED Communication Industry (UCOM) plans to sell some of its
subsidiaries' shares to pay foreign debt worth US$450 million.
UCOM Executive Vice-President Nopadol Thongprasert said UCOM is
planing to sell some of its 65 percent stake in Total Access
Communication (TAC) and some of its 10 percent share in Inter Web
which is expected to be listed in the US stock market early next
year.

He said the company may sell some portion of its Inter Web share
next year, but the time frame has not been determined.
If the deal falls through, UCOM expects to receive $20 million
from the deal.

UCOM completed its debt restructuring plan worth $573 million in
February. Under the agreement, $120 million of debt was converted
to equity. The remaining of $450 million had been rescheduled for
annual repayments from December 15, 1999 to December 15, 2003.

He said the company plans an investment of $1 billion next year,
mainly on broadband business groups which have lower operating
margins than telecom services but which UCOM relies on the most.

He said UCOM's financial situation has almost returned to normal,
adding that not including cellular services, the company's sales
is expected to grow by 40 percent, compared to last year, since
its has secured contracts worth 10 billion baht which will
generate net profit for at least the next two years. In addition,
the company gained a windfall profit resulting from stronger baht
during the third quarter.

However, in the third quarter, UCOM posted a net loss of 7.7
billion baht, making a nine-month loss total of 7.2 billion baht,
he said.

Meanwhile, UCOM Chief Executive Officer and President Boonchai
Bencharongkul said the company also plans to sell some portion of
its stake in TAC within the first quarter of next year, expecting
to gain $100 million from the deal. To date there are two
potential foreign buyers, he said, refusing to disclose the
names.

UCOM group is a large telecommunication supplier and service
provider with a strong foundation from significant infrastructure
networks including microwave links, optical fiber lines and
satellite networks. (Business Day [Thailand] 27-Dec-99)


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