TCRAP_Public/000103.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, January 3, 2000, Vol. 3, No. 1

                             Headlines
  

* I N D O N E S I A *

BANK BALI: Regulators Require Shelving of Rights Offering

* K O R E A *

DAEWOO: Fitch Assigns 'D' Credit Rating
DAEWOO CORP.: Gov't Puts Hanvit Bank in Korea First's Shoes
DAEWOO MOTOR: Hyundai Motor Launching "War" to Capture Daewoo
DAEWOO MOTOR: Samsung Denies Interest in Bidding for Daewoo
HANDUK LIFE: Troubled Insurer to Be Sold to Young Poong Group
HYUNDAI GROUP: Selling 70% Energy Interest to Tractebel SA
HYUNDAI GROUP: Hyundai To Hold Off New Rights Offerings
KOREA FIRST: Total Losses Projected to Top 11 Trillion Won
KOREA HEAVY: Chaebol to Fight Foreign Takeover Attempts
KOREA HEAVY: HANJUNG & Samsung Join in New Ship Engine Co.
SAMSUNG MOTORS: Placed Under Court Managership Last Friday
SAMSUNG GROUP: Aims To Sell Motor Operations By End of February
SSANGYONG MOTORS: Chohung Bank Finalizes & Signs Workout Plan

* M A L A Y S I A *

KELANAMAS INDUSTRIES: Looks to Acquisition Spree for Salvation
LION GROUP: Considers Debt-Swap Solution
RED BOX: Restructuring To See Reverse Takeover

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

CAPITOL WIRE: Creditors Reported to Agree on Rehab Plan
NATIONAL STEEL: Seeks SEC Approval For Rehabilitation Proposal

* T H A I L A N D *

BANGKOK BANK: Restructuring of Debt Exceeds Bt 100bn Target
DATAMAT: Creditors Vote to Accept Restructuring Plan
SAHAVIRIYA OA: Court Approves Reorganization Plan
WANG KANAI: Sugar Mill Signs Agreement to Restructure $123 Mil


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

BANK BALI: Regulators Require Shelving of Rights Offering
---------------------------------------------------------
Bank Bali delayed a rights offer to raise 4.04 trillion rupiah
(about HK$4.42 billion) after a regulator refused to approve the
sale, crimping Indonesia's plan to revive its shattered banking
system.  The Capital Market Supervisory Agency, Bapepam, rejected
the rights offer due to inadequate information, said Freddy
Saragih, a Bapepam official.  Mr Saragih said the agency needs a
written statement detailing the investors who bought a 39.3 per
cent stake in the name of Deutsche Boerse Clearing.

"It's not clear when we will can go ahead," said Franklin
Richard, a spokesman for the Indonesian Bank Restructuring Agency
(Ibra), which manages the bank. A shareholders' meeting to
approve the plan was also delayed.

Bapepam said the recapitalisation is not necessarily scuppered by
yesterday's setback.

"It is not cancelled, it is delayed," said Mr Saragih.

"Bank Bali hasn't provided Bapepam all the explanations and
additional documents required."

The move is the biggest setback to the bank since Standard
Chartered pulled out of an agreement to buy a 20 per cent stake.
Since the British bank got involved in the purchase eight months
ago, the Indonesian bank has faced a corruption scandal, been
nationalised, and endured massive employee protests.
At the time, Standard Chartered's agreement to take over Bank
Bali was hailed as a milestone transaction showing foreign bank
interest in helping Indonesia fix its banking system, which all
but collapsed after 1997's currency crisis sent the country into
a deep recession.

Foreign investors are watching to see if Ibra can carry out the
rights offer, seen as a measure of the agency's ability to sell
the 464 trillion rupiah in assets under its control. That is key
for Ibra's job of recouping the US$90 billion the government
plans to spend fixing the banks.

The British bank is still keen to invest in Bank Bali and might
bid to buy some of Ibra's shares through the rights offer.

Standard Chartered has faced a tough few months since it agreed
in July to invest $125 million in Bank Bali. In April, when the
bank first committed to the purchase, it thought it was buying
one of Indonesia's best-run commercial lenders with 280 branches
and more than one million customers.

Then, in early August, Bank Bali became embroiled in an $80
million corruption scandal involving a company linked to the then
ruling party.  In November, massive employee protests ran the
British bankers out, leaving the bank's management in the hands
of the bank rescue agency.

Bank Bali shares were the worst performing banking share last
month, falling 38 per cent to 450 rupiah.

Analysts are speculating that the Ramli family, which founded the
bank, could try to regain ownership. Rudy Ramli, the bank's
former president director, has said he feels cheated by the bank
rescue agency because it forced Bank Bali to accept Standard
Chartered as its partner.

Herman Ramli, the president director of Sarijaya Wirasentosa,
Bank Bali's founding company, called for a delay in yesterday's
shareholders meeting because the management failed to provide
adequate documentation, Bisnis Indonesia newspaper reported on
Thursday.  (Bloomberg News and South China Morning Post 01-Jan-
2000)



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

DAEWOO: Fitch Assigns 'D' Credit Rating
---------------------------------------
Fitch IBCA, the international rating agency, said yesterday that
it has downgraded both Daewoo Corp.'s senior unsecured rating and
its short-term rating to 'D.' The downgrade reflects the huge
accounting error both on groupwide collated figures and within
individual company accounts, and the shortage of collateral for
secured and unsecured creditors alike, the rating agency said.
Estimates indicate that group companies owe a total of $75
billion in debt, which exceeds their total assets by more than
$21 billion, it said.

A rating of 'D' implies that unsecured creditors can recover
below 50 percent of their loans.  (Korea Herald 31-Dec-1999)


DAEWOO CORP.: Gov't Puts Hanvit Bank in Korea First's Shoes
-----------------------------------------------------------
From Seoul, Yonhap reports that the South Korean government will
replace Korea First Bank (KSE: 00110) as Daewoo Corp's main
creditor with Hanvit Bank (00030) now that Korea First's
management is in foreign hands.  Similar changes will follow in
Daweoo Telecom and Diners Club Korea, in which Korea First
currently leads the team of domestic creditors, a Financial
Supervisory Service official said last Wednesday.

"It is better for a domestic bank to lead negotiations with
foreign creditors instead of Korea First, which is now run by
Newbridge Capital," the FSC official said.  "It is also
unsuitable for Korea First to head corporate creditors, having
declared its intention of concentrating on retail banking in the
wake of the takeover by Newbridge."  The official said that it
took time to change main creditors while the workout arrangements
are under process, but that main creditors for Daewoo Telecom and
Diners Club are likely to be decided within the year.  

Daewoo Corp's main creditor will lead talks with foreign
creditors on loss-sharing next month to decide whether to place
the flagship company under court receivership or not.


DAEWOO MOTOR: Hyundai Motor Launching "War" to Capture Daewoo
-------------------------------------------------------------
Oh Young-jin, writing for the Korea Times, reports that Hyundai
Motor is expected to launch a major push in a bidding "war" to
capture the ailing Daewoo Motor.  In a surprise move, the Hyundai
Group put Park Se-yong in charge of its flagship, Hyundai Motor.
Park was lauded for his role in the conglomerate's restructuring
last year.  Although Park, the former chairman of the Hyundai
Merchant Marine and the group's trading arm, Hyundai Corp., has
no real experience with the motor business, many industry
watchers see that his new job has everything to do with a looming
battle Hyundai will not be able to avoid with the world's major
auto powers this year.

"Park, a close aide of group founder Chung Ju-yung, is the cream
of Hyundai's top management talent," one industry source tells
the Times.  "There should be adequate reasons for Park's
appointment, with the most compelling concerning Daewoo Motor."

Daewoo Motor is Korea's No. 2 automaker that is the flagship of
the ailing conglomerate being dissected under the creditors-
initiated debt workout.  Hyundai's potential adversaries include
the all-mighty General Motors and Ford Motors of the United
States, while DaimlerChrysler is seen biding its time to jump in.
Should one of the world's majors take over Daewoo Motor, Hyundai
would stand to lose a large chunk of its share in the domestic
market.  After its acquisition of Kia Motors in an international
tender last year, Hyundai Motor has seen its domestic market
share rise to three thirds of the total, making Daewoo Motor a
distant second. But according to an unconfirmed internal study,
Hyundai believes that it would have to see its domestic market
share reduced by half a couple of years after whatever foreign
major company takes over Daewoo Motor and consolidates its
position.

Industry experts surveyed by the Times expect that Chung Mong-
koo, the eldest son of the Hyundai founder and erstwhile chief of
Hyundai Motor, will see his status weakened as the result of
Park's appointment.  Hyundai officials state that Mong-koo will
take charge of both Hyundai Motor and its sister firm Kia Motors
but few would disagree that Park would wield real power as far as
Hyundai Motor is concerned.  Meanwhile, although Hyundai Motor
officially maintains that it is not interested in Daewoo Motor,
some of its senior officials are taking opposition to the
takeover of Daewoo Motor by any foreign company.  According to
other industry sources, Hyundai is expected to enter into
negotiations with Ford Motor when the world's No. 2 automaker
sends a delegation to Seoul Wednesday.  The first test for Park
in his new job comes during Ford's upcoming visit to Seoul, all
commentators agree.


DAEWOO MOTOR: Samsung Denies Interest in Bidding for Daewoo
-----------------------------------------------------------
Samsung Group Chairman Lee Kun-hee said last Wednesday that his
conglomerate had no intention of participating in the auction for
Daewoo Motor scheduled for early next year.  Samsung hoped that
its creditors would succeed in selling Samsung Motors to a
foreign company, Lee said in a written interview with Yonhap News
Agency.

"There are one or two companies interested in buying Samsung
Motors.  We hope to hear some news within the next two months,"
he said.  

Meanwhile, Yonhap relates, Hyundai Group Chairman Chung Mong-koo
said the country's biggest automaker was only interested in
Daewoo's operations in Poland.

"Hyundai already has the capacity to turn out 2.8 million units
after its
takeover of Kia Motors. We have no need to take over another
large automaker," Chung said.  "But we are interested in Daewoo's
auto plant in Poland."  Chung also said his group will increase
recruitment next year.


HANDUK LIFE: Troubled Insurer to Be Sold to Young Poong Group
-------------------------------------------------------------
South Korea's Financial Supervisory Commission said it signed a
memorandum of understanding on the sale of troubled Handuk Like
Insurance Co. to South Korea's Young Poong Group, according to a
report appearing in the Asian Wall Street Journal.  After
conducting a due diligence into Handuk Life Insurance's assets
and debts, the Journal says, the FSC expects to sign a final
agreement on the sale of the insurance company early next year,
according to an FSC official.

Young Poong Group plans to merge Handuk Life Insurance with its
own life insurance unit - Young Poong Life Insurance Co. - after
the takeover, and assume more than 60% of the troubled life
insurance company's employees, the FSC official indicated.  The
FSC recently declared Handuk Life nonviable as the company's
debts exceed its assets.


HYUNDAI GROUP: Selling 70% Energy Interest to Tractebel SA
----------------------------------------------------------
Hyundai Group of South Korea signed an agreement to sell a 70%
stake in unit Hyundai Energy Co. to Tractebel SA of Belgium for
12.6 billion won (US$11 million).  The remaining 30% stake will
stay in the group.  Tractebel is expected to invest a total of
$70 million in Hyundai Energy, including the stake purchase,
according to Hyundai Group.  Hyundai Energy is constructing a
power plant run by liquefied natural gas in Ulchon, some 400
kilometers south of seoul.  The plant will be completed in June
2003.  This news comes from a report appearing late last week in
the Asian Wall Street Journal.


HYUNDAI GROUP: Hyundai To Hold Off New Rights Offerings
-------------------------------------------------------
Hyundai Business Group plans to refrain from new rights offerings
this year for its subsidiaries in a bid to stem any downfall in
their stock prices. The nation's top business group said Sunday
that its subsidiaries, excluding the Hyundai Merchant Marine and
construction-related divisions, succeeded in lowering their debt-
to-equity ratio below 200% at the end of last year. As a result,
group-wide debt ratio will fall to as low as 189.9%.

Last year, Hyundai raked in huge funds through frequent rights
offerings. But the chaebol underscored that it will carry out
watertight controls in share prices of its subsidiaries to
maximize shareholder profits and to upgrade the value of the
subsidiaries.

Hyundai explained that Hyundai Asan, the conglomerate's arm of
various operations in North Korea, including the Mt. Kumkang tour
projects, will need a certain series of new rights offerings to
defray the costs of its North Korean investments.

Hyundai also noted that Hyundai Electronics' debt-to-equity ratio
went down to 150% and Hyundai Motor to 180% as of the end of last
year, but Hyundai Construction's debt-to-equity ratio remains at
270% and Hyundai Merchant Marine at 220%.  (ChosunIlbo 02-Jan-
2000)


KOREA FIRST: Total Losses Projected to Top 11 Trillion Won
----------------------------------------------------------
Korea First Bank (KSE: 00110) will cost the South Korean
government over 3 trillion won (US$ 2.6 billion) in additional
funds in addition to the 8.5 trillion won already spent before
its sale to Newbridge Capital last week.  The government has
spent thus far 8.47 trillion won in cleaning up the bank
since it was nationalized early last year, a government official
close to the situation said Tuesday.  The final tab is expected
to reach over 11 trillion won because the government promised to
take over bad loans or losses appearing over the next three years
in the definitive agreement with Newbridge.  The government
spent 5.71 trillion won through the deposit insurance fund bond
and purchased bad debts worth 1.1 trillion won before the bank
was formally handed over to Newbridge Thursday.  (Asia Pulse 29-
Dec-1999)


KOREA HEAVY: Chaebol to Fight Foreign Takeover Attempts
-------------------------------------------------------
As well as trying to avert the takeover of Daewoo Motor by
General Motors, the chaebol have recently embarked upon a
campaign to prevent Korea Heavy Industries & Construction Co., or
HANJUNG, from falling into foreign hands.  The government's
decision Wednesday to give two foreign companies -- General
Electric and ABB -- priority rights to buy a hefty 25 percent
stake in HANJUNG immediately sparked an outcry in local business
circles.  The Ministry of Commerce, Industry and Energy's (MOCIE)
failure to clarify its position as to whether the chaebol will be
allowed to take part in the bidding for another 26 percent stake
in HANJUNG further angered the business conglomerates.

Chaebol executives and economists warn that handing over key
industrial assets to foreigners will result in the gradual
collapse of mainstay industries, forcing Korea to become a
subcontractor for western firms.  They also insist that massive
layoffs and plant closures will be among other adverse outcomes
from foreign takeovers of major industrial firms, forecasting
that foreign employers will scale down their Korean operations in
line with their global strategy.

"With the foreign exchange crisis almost overcome, the government
does not have to show excessive enthusiasm toward attracting
foreign investments or overseas sales of industrial assets," said
Kim Kang-su, a spokesman for the Korea Economic Research
Institute, a chaebol think tank.

HANJUNG, one of Korea's biggest state firms, is the builder of
power generation equipment and ship engines.  It is engaged in
nuclear power projects in North Korea, China and other Asian
countries.  Hyundai and Samsung officials said control of HANJUNG
by a foreign firm will transform the profitable state-run giant
into a mere subcontracting plant for foreign firms. "In the wake
of a foreign takeover, Korea's dependence on multinationals for
the supply of key heavy industrial technologies will deepen
further," said a Hyundai Heavy Industries executive.

"A lucrative state corporation built with huge amounts of
taxpayers money should not be sold to foreigners at bargain
prices," he said. Samsung Group officials noted that GE and ABB
have a history of implementing massive plant closures in the wake
of respective successful takeover bids in Hungary and Britain.

Shortly after the commerce ministry's announcement, spokesmen for
both Hyundai and Samsung groups said they remain unchanged in
their desire to acquire a controlling stake in HANJUNG. Clouding
the position further, the powerful watchdog Financial Supervisory
Commission said yesterday it is opposed to the privatization of
HANJUNG, citing the lack of restructuring and managerial
restructuring plans. "MOCIE's plan to sell sizable stake in
HANJUNG to foreigners and the stock market does not conform to
the government's restructuring policy," said a ranking FSC
official.

HANJUNG's privatization program followed a crippling 48-day
strike that ended this week with the commerce ministry and
company management allegedly agreeing to exclude the chaebol from
the bidding competition.  (Korea Herald 30-Dec-1999)


KOREA HEAVY: HANJUNG & Samsung Join in New Ship Engine Co.
----------------------------------------------------------
A ship engine manufacturing company consolidating the lines of
Korea Heavy Industries and Construction (HANJUNG) and Samsung
Heavy Industries was officially launched on December 31.  The two
firms completed corporate registration of the consolidated firm
under the name of HSG Engine with an initial capital of W5
billion and a 60:40 ratio, with HANJUNG holding the majority.
With Daewoo Heavy Industries also expressing interest in
participating in the new firm, the new capital contribution ratio
will be HANJUNG with 51 %, Samsung with 34%, and Daewoo with 15%,
increasing its capital to W20 billion. The head office of the
consolidated firm will be located at Samsung Heavy Industries'
engine plant in Changwon, South Kyongsan province. HANJUNG and
Samsung each plan to transfer approximately 400 employees to the
new firm.  (ChosunIlbo 31-Dec-1999)


SAMSUNG MOTORS: Placed Under Court Managership Last Friday
----------------------------------------------------------
The Pusan District Court declared Friday that court management of
Samsung Motors would commence at the earliest and named Hong
Jong-man, a representative of the company as manager. The court
set January 31, 2000 as the deadline for stock declaration and
decided to hold a gathering of related share holders on February
21 before fully approving court management.

The court said that it, had ruled for court control because it
could not be sure that the value of Samsung Motors would be
greater when liquidated than if it was kept in business as a
private entity, and also could not find any reason to dismiss the
court management application.  Samsung Motors applied for
receivership in June 1999. (ChosunIlbo 31-Dec-1999)


SAMSUNG GROUP: Aims To Sell Motor Operations By End of February
---------------------------------------------------------------
South Korea's Samsung Group is aiming to sell its crippled motor
business to a foreign firm by the end of February, The Star
related last week.  "We hope to complete the deal by the end of
February," a Samsung spokesman said.  The spokesman, however,
declined to confirm local news reports that France's Renault SA
and Germany's Sachsenring Autmobiltechnik AG had submitted
letters of intent to take over Samsung Motors Inc.

Yonhap news agency, as related in the TCR-AP last week, reported
on Wednesday that Renault's board of directors had recently
decided to take over Samsung Motors.  

Samsung Motors was placed under court receivership in July after
group chief Lee Kun-Hee promised to hand over 2.8 trillion won of
personal assets to guarantee the company's 4.3-trillion-won debt.


SSANGYONG MOTORS: Chohung Bank Finalizes & Signs Workout Plan
-------------------------------------------------------------
Ssangyong Motors' major creditor Chohung Bank finalized a workout
plan last week.  The plan includes a debt to equity conversion of
130 billion won.  With another 1.3 trillion won in bonds, the
creditor banks decided to reduce the interest rates to 2-4
percent for collaterals and to 1-2 percent for non-collaterals.  
Banks will inject an additional capital worth $220 million to
support the company's transactions with overseas counterparts.  
(Korea Times 30-Dec-1999)


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M A L A Y S I A
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KELANAMAS INDUSTRIES: Looks to Acquisition Spree for Salvation
--------------------------------------------------------------
Kelanamas Industries Bhd (KIB) is proposing to acquire 19
property development companies under a proposed restructuring
exercise aimed at placing the KIB group on a stronger financial
footing, The Star reported last week, citing a company statement
explaining that the proposed exercise would entail a capital
reconstruction, debt reconstruction, acquisition of Khoo Soon Lee
Realty Sdn Bhd (KSL) group, disposal of non-core business and
transfer of KIB's listed status and exemption from a mandatory
general offer.

The capital reconstruction involves shareholders of KIB
undertaking a reduction of the paid-up capital of KIB following
which existing KIB shareholders will become shareholders of a new
company (Newco).  KIB will become a wholly-owned subsidiary of
the Newco and Newco to become the investment holding company of
the KIB group and KSL.  The statement also said that the debt
reconstruction involved negotiations with creditors, details of
which would be announced upon finalisation with creditors of the
KIB group.  The KSL group will be injected into the Newco which
will assume the listing status of KIB upon completion of the
restructuring exercise.

Depending on the outcome of the negotiations in respect of the
proposed debt reconstruction, the vendors of the KSL group may
collectively emerge as the controlling shareholders of Newco,
holding in aggregate such number of shares exceeding 33% of the
enlarged issued and paid-up share capital of Newco.  In that
event, an application will be made to the Securities Commission
for an exemption from having to undertake a mandatory general
offer for the remaining Newco shares not already held by them.

The proposed disposal of non-core business will be implemented
upon completion of the proposed capital reconstruction, debt
reconstruction, acquisition of KSL group and transfer of KIB's
listing status.

KIB explained that the group incurred substantial losses due to
the economic crisis which had adversely affected the group's
businesses from its stockbroking activities, carried out through
associate company, Alor Setar Securities Sdn Bhd (ASSSB), to its
trading, distribution of consumer products, investment and
development activities.  ASSSB, which was the group's main income
contributor, was placed under trading restrictions by the KLSE,
the group's consumer trading and distribution activities was
affected by rising costs, declining profit margins and increase
in provisions for bad debts.


LION GROUP: Considers Debt-Swap Solution
----------------------------------------
The Lion group is offering to swap much of its M$10.2 billion
(about HK$20.85 billion) debt for new bonds and stock to avert a
collapse of the owner of Malaysia's biggest publicly traded
steel-maker.  Its offer, made in a letter to creditors, comes as
Lion tries to put its house in order after years of borrowing to
fund expansion into property, steel and insurance, chocolates,
cars and beer.  The debt became a burden after interest rates
rose to their highest level in a decade and Malaysia fell into
recession last year.  The debt plan will allow Lion, controlled
by Singapore-born William Cheng, to attempt to meet rising demand
for its products and services as Malaysia's economy recovers.

For creditors, "it's better than not getting anything", said
Chong Sui San, a manager at Pacific Mutual Fund.

Under the plan, creditors of Lion units Lion Corp, Amsteel,
Angkasa Marketing, Lion Land, and Chocolate Products, will get
new zero-coupon bonds, with payments yearly over 10 years.

The annual redemption of the bonds will be made from money raised
through asset sales, and cash-flow from key businesses such as
steel.  The debt proposal would ensure all lenders were fully
repaid "in an orderly manner over a period of time", Lion said in
the letter to creditors.

Lion group executives said they were unable to comment on the
proposal.  The plan, with some adjustments, may be acceptable to
the group's lenders, some creditors said.

The proposal, compiled with advice from RHB Sakura Merchant
Bankers, was submitted to creditors on December 1.  A creditors'
meeting next month with Lion is expected to fine-tune the plan.
Lion hopes to issue the bonds in July.  

Lion group has 109 domestic and foreign creditors, including
Malayan Banking, Perwira Affin Bank, RHB Bank, HSBC Bank, Chase
Manhattan Bank, OCBC Bank, and Bayerische Landesbank.  Lion,
which has assets of $15 billion - much of it in Singapore, Hong
Kong, the mainland and Malaysia - consists of eight publicly
traded companies that control 383 other firms.  The debt plans
will make it the second of the country's large conglomerates to
tap the capital markets to stay afloat.

Earlier this year, Renong, Malaysia's biggest industrial group,
with debts of $20 billion, unveiled a plan under which its cash-
rich toll-road unit would sell $8.4 billion in bonds to bail out
the parent.

Lion's debt plan will leave Amsteel, Lion Land, Chocolate
Products, Lion Corp and Angkasa Marketing with no more than two
main businesses each.  Amsteel, which has interests in steel,
insurance, property development and tyre-making, and controls the
most number of companies in the Lion group, plans to issue bonds
and new stock valued at 70.5 sen each in exchange for $1.76
billion of debt.  It also plans to delay repayment of its US
dollar denominated debt totalling $644 million over 10 years.
Amsteel's businesses will be cut to property development.  
Amsteel's steel businesses, through its 49.9 per cent stake in
closely held Megasteel, will be sold to Mr Cheng's flagship
company Lion Corp, which owns the balance of Megasteel.  Lion
Corp, which has interests in cars, food, tyres and chemicals will
sell most of its businesses and focus solely on steel operations.
Lion Land will focus on steel and timber, while Angkasa Marketing
will handle the car business.  Chocolate Products will focus
solely on its brewery and property investment.  (South China
Morning Post 30-Dec-1999)


RED BOX: Restructuring To See Reverse Takeover
----------------------------------------------
Debt-laden Red Box (M) is undertaking a corporate restructuring
exercise which will enable a reverse takeover and the back-door
listing of Asia Pacific Latex Bhd (APL).  Red Box said that under
the exercise, the company would cancel all its paid-up capital
comprising 65 million RM1 shares giving rise to a credit of
RM65mil.  Of the amount raised, a total of RM6.5mil will be used
to pay in full 6.5 million new RM1 shares in its share capital
which will be allotted to APL Industries Bhd (APLI) thus
triggering the reverse take-over.  According to a Red Box
statement, the balance of the credit would be used to reduce the
accumulated losses of the company which stood at RM67.6mil as of
Jan 31, 1999.  APLI is a holding company set up to implement the
proposed corporate restructuring of Red Box by assuming the
listing status of the company.

As for the shareholders of Red Box, they will be allotted with
APLI shares on the basis on one new share for every 10 existing
shares held.  Red Box said the proposed rescue plan came about on
July 5, 1999, when it entered into a deed of agreement with APL
whereby APL will procure its shareholders to transfer all the
shares in APL to APLI for new shares alloted to the latter.  APL
is mainly involved in the manufacture and trading of latex
gloves.  (The Star 31-Dec-1999)


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

CAPITOL WIRE: Creditors Reported to Agree on Rehab Plan
-------------------------------------------------------
Ending the past year on a good note, international gateway
operator Capitol Wireless, Inc. (Capwire) finally signed last
December 28 the final terms and conditions with creditor-banks
leading to the restructuring of its 736-million-peso (US$18.3
million at PhP40.298:US$1) debt. In a telephone interview,
Capwire senior vice president and chief financial officer Joel C.
Aguilar said except for the amortization schedule, they have
already concluded debt restructuring negotiations with the banks.

"(Signing of the final terms with the banks) is one of the year-
end agreements we ensured will happen," Mr. Aguilar told
BusinessWorld. He added the terms of the restructuring plan were
already laid out for the final draft which, in turn, will form
the debt restructuring's legal document. On the amortization
schedule, Capwire and the banks will sit down this week to work
for an "affordable" repayment schedule.

Mr. Aguilar admitted the company finds it hard to follow the
proposed amortization schedule of the banks. The banks want the
company to pay the principal and interest within eight to nine
years. Capwire, for its part, claims it can only repay in 10 to
11 years. "We are actually looking at a compromise. (The
amortization proposal) of the banks is heavy that we may not be
able to support our operations. It is just a matter of pushing
back the schedule of the payments," Mr. Aguilar explained.
Capwire will be relying on internally generated funds to repay
their debt to creditor-banks.  (BusinessWorld 03-Jan-2000)


NATIONAL STEEL: Seeks SEC Approval For Rehabilitation Proposal
--------------------------------------------------------------
Expecting to resume operations by mid-January this year, after
closing shop two months ago, cash-strapped National Steel Corp.
(NSC) has sought the corporate overseer's go signal for a
rehabilitation plan designed to put the steel-maker back to work.

Under the rehab plan filed with the Securities and Exchange
Commission (SEC) last week, NSC proposed to convert its
outstanding bank loans of over 13.2 billion Philippine pesos
(US$327.5 million at PhP40.298:US$1) into non-participating, non-
voting and non-cumulative preferred shares.

The commission's newly approved rules on corporate recovery,
however, would require creditors approval of NSC's proposal
before the latter can implement the same.

While waiting for the SEC's okay for twin petitions on suspension
of debt payment and rehabilitation, the debt-laden steel maker is
on the lookout for potential investors or strategic partners, to
infuse an additional capital of over $130 million within the next
two years.

In exchange for the capital infusion, NSC will issue additional
common shares.

Apart from the capital infusion, the strategic partner should
provide NSC with a $50-million supplier's credit line to be used
for the importation of the slabs.

                          REPAYMENT SCHEME

Under its proposed debt repayment scheme, 20% or PhP84.6 million
($2.1 million) of NSC's outstanding trade payables of PhP423
million ($10.5 million) will be condoned and the balance to be
paid without interest within a period of three years.

The beleaguered steel maker has also proposed to scrap 50% or
PhP408 million ($10 million) of its PhP816 million ($20.2
million) outstanding payables to the government and pay the
balance without interest, in five years.

NSC filed for debt suspension last December 21 for obligations
amounting to over PhP16 billion ($397 million). NSC asked the SEC
for the debt relief when its secured creditors foreclosed on its
mortgaged assets after it failed to meet debt payments.

In its petition for debt relief, NSC said the currency crisis
increased its operating costs at a time when the liberalization
of world trade dampened demand for its products.

NSC said it needs two years to fully revive its operations with
the help of a new investor.

NSC's list of creditors is led by Philippine National Bank, with
an exposure of PhP5.6 billion ($138.9 million), followed by
Indosuez with claims amounting to PhP1.62 billion ($40.2
million), and Land Bank of the Philippines with claims of PhP1.01
billion ($25 million).

The steel firm is majority-owned by Hong Kong-based Hottick
Investments Ltd. The Philippine government, through the National
Development Co., has a 12.5% stake while Japan's Marubeni Corp.
holds a 5% share. Hottick had earlier planned to divest but it
was reported that no deal was closed with potential investors.
The Hong Kong-based firm bought out former NSC owner Wing Tiek
Holdings Bhd. of Malaysia in February 1997 using borrowings of
$800 million from four Malaysian banks and $32 million from a
local bank syndicate which include Westmont Bank.  (BusinessWorld
03-Jan-2000)


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

BANGKOK BANK: Restructuring of Debt Exceeds Bt 100bn Target
-----------------------------------------------------------
Bangkok Bank (BBL) said its debt restructuring has topped the
target of 100 billion baht, bringing the total non performing
loans (NPLs) down to 35 percent, thanks to sugar mills operator
Wangkanai Group.

Bangkok Bank yesterday signed an agreement to restructure 7
billion baht (US$186 million) of debt owed by sugar mills under
the Wangkanai Group and has now restructured 30 billion baht of
the debt owed by the sugar industry. This helped the bank meet
its target of restructuring 100 billion baht debt this year,
Senior Executive Vice President Deja Tulananda said.

BBL said its nonperforming loans fell to 35 percent of total
credits from 48 percent at the beginning of the year as it
restructured delinquent debt.

That is better than the Thai banking industry as a whole, with
bad loans accounting for 42.3 percent of all credits in November.
"In the future, BBL plans to put more capital investment into
sugar mills industry since it believes that the industry will
make substantial profit after debt restructuring program had been
finalized. The process in turn will expand the banks lending to
private sector," said Assistant Senior Vice President Charnsak
Fungfu.

He also added that following the Wangkanai Group debt
restructuring plan, BBL's total debt reform among sugar mills
operators has reached 30 billion baht, not including Thai Ekaluk
Group for which Bangkok Bank is not a major creditor.

"We expect to complete all the remaining debt restructuring by
the first quarter of next year," Deja said.

BBL still has to work out a debt agreement with Thai
Petrochemical Industry. Thai Petro, which owes Bangkok Bank about
30 billion baht, in February signed an agreement with its lenders
to restructure US$3.5 billion in debt. The company is now
negotiating to change the terms already agreed upon.

A source at BBL said the bank is counting on reducing its total
NPLs down to 30 percent early next year, and possibly down to 15
percent by 2001.

The Bank of Thailand said 2.36 trillion baht (US$62 billion) of
loans extended by Thailand's 13 commercial banks, 35 non-bank
finance companies and about two dozen foreign banks with local
branches, were in arrears by at least three months.

Bangkok Bank is Thailand's largest bank, with 1.26 trillion baht
in assets as of the end of last month, including loans of 769
billion baht.  (Bloomberg News & Business Day 30-Dec-1999)


DATAMAT: Creditors Vote to Accept Restructuring Plan
----------------------------------------------------
Datamat Public Company Limited announced last week that creditors
voted at a meeting on December 22, 1999 to accept
the DTM's Debt Restructuring Plan.  The resolution of 7
creditors, equal to 63.64% of total number of creditors or 89.71%
of total debt, voted accept the plan and 4 creditors, equal to
36.36% of total number of creditors or 10.29% of total debt,
voted against the plan.  The company's restructuring plan is as
follows:

1. Secured Debt      : The creditors will be repaid upto 90% of
                        total market value of securities, which
                        equal to 255,196,000 baht.

2. Unsecured Debt    : The amount of 718,586,000 baht extended to
                        12 years. The grace period is for the
                        first three years with interest rate at
                        3.00%, and subsequently the interest
                        payment will be increased to MLR.

3. Unsecured Debt at
    low interest rate : The creditors of total debt 385,400,000
                        baht agree to extend the repayment
                        period to within 12 years with interest                
                        rate at 0.01%.

4. Accrued Interest  : The creditors will be repaid the amount of
                        117,147,000 baht at the end of 12th year.

DMT proposed a legal advisor to prepare the restructuring plan
within 60 days.  Accordingly, the Company asks the SET for a
further extension of the submission date of the rehabilitation
plan from the end of December 1999 to the end of June 2000.


SAHAVIRIYA OA: Court Approves Reorganization Plan
-------------------------------------------------
SAHAVIRIYA OA PLC, following the approval of the Plan by the
majority of creditors on 23rd December 1999, the Central
Bankruptcy Court (the Court) last week issued an order to approve
the Plan as it is in compliance with Section 90/42 of the
Bankruptcy Act B.E. 2483 (A.D. 1940) as amended by Bankruptcy Act
(No. 5) B.E. 2542 (A.D. 1999).  The Court also appointed SVOA
Planner Co., Ltd. to be the Plan Administrator.  The right and
duties of the Planner are now passed to the Plan Administrator.


WANG KANAI: Sugar Mill Signs Agreement to Restructure $123 Mil
--------------------------------------------------------------
Wang Kanai Group of Thailand said it has signed an agreement to
restructure eight billion baht ($213 million) in debt owed by two
of its sugar mills to Bangkok Bank PCL, according to a news
report appearing last week in The Asian Wall Street Journal.  
Repayment will be rescheduled to eight years, depending on the
financial capability of the company, said the group's general
managing director, Teera Na Wangkanai.  Bangkok Bank will become
the group's only creditor, through a liability swap between the
bank and Thai Military Bank PCL involving export credits and
foreign exchange losses, he said.  Bangkok Bank has also aproved
a loan of at least 2.7 billion baht for working capital, Mr.
Teera said.  


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

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