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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

            Thursday, January 6, 2000, Vol. 3, No. 4

                                        Headlines


* C H I N A  &  H O N G  K O N G *

DENNY'S FOOD CORP.: Goes into voluntary liquidation
THEME INT'L HOLDINGS LTD: Reports acquisition to HKSE
WENDY FOODS: Goes into voluntary liquidation


* I N D O N E S I A *

BANK BALI: IBRA sets rights issue by end of January
BANK INDONESIA: Liabilities balloon
BANK INDONESIA: Debit debate on emergency credits; bonds?
BANK PDFCI: Delisted following merger


* K O R E A *

DAEWOO ELECTRONIC COMPONENTS: Gets loan from Chinese bank
DAEWOO MOTOR CO.: Ford to meet Daewoo creditors
SAMSUNG MOTOR: Renault confirms talks with Samsung


* M A L A Y S I A *

PARK MAY BHD: Park May finalises debt scheme


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

PILIPINAS SHELL PETROLEUM CORP.: Inks $110M refinancing
SOLID BANK CORP.: Scotiabank move called "malicious"
UNIWIDE SALES REALTY AND RES.: Seeks SEC okay of settlement


* T H A I L A N D *

BANK OF THAILAND: Central bank note discounting practices
EASTERN STAR REAL ESTATE: Reports debt rehab signing
SIAM CEMENT PLC: Set to sell 30 million shares
SRITHAI SUPERWARE PLC: Reports rehab approval to SET


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

DENNY'S FOOD CORP.: Goes into voluntary liquidation
---------------------------------------------------
Denny's Food Corp, one of Hong Kong's oldest bakery
suppliers, has gone into voluntary liquidation.  The
company, with 130 employees, stopped operating on Monday.

Ernst & Young (Hong Kong) partners Matthew O'Driscoll and
Raymond Woo have been appointed provisional liquidators.
Mr O'Driscoll yesterday said the company could no longer
fund its business, after several years of operating losses.
It had been affected by competition amid a worsening
environment, he said, although it might yet reopen.

"If a buyer is found, Denny's business will hopefully be
re-started by the Chinese New Year," Mr O'Driscoll said.

The liquidators were negotiating with several parties.
(South China Morning Post  05-Jan-2000)

THEME INT'L HOLDINGS LTD: Reports acquisition to HKSE
-----------------------------------------------------
On 30 December 1999, formal agreements were entered into
for the purchase of all debts owed to certain bank
creditors of Theme International Holdings Limited
(Incorporated in Bermuda with limited liability) ("the
Company") and its subsidiaries (the "Group") and all the
underlying guarantees and security over the Group's assets
by Navigation Limited, a wholly-owned subsidiary of High
Fashion International Limited, for permitting the secured
bank creditors of the Group to enter into possession of the
properties and assets mortgaged or charged to them and for
waiver and cancellation of options to put or call shares in
Wescorp Limited.

Further to the Company's announcements dated 28 October
1999, 24 November 1999 and 3 January 2000 respectively, the
Board is pleased to announce that it has successfully
completed the negotiations with its bank creditors
regarding the final proposal received from High Fashion
with a view to addressing the Company's short-term working
capital requirements and long-term business prospects.

On 30 December 1999, the Bank Debt Purchase Agreement, the
Deed of Cancellation and the Belion Share Sale Agreement
were executed by all relevant parties thereto and were duly
completed.
Parties:

The Company, the Borrowers, the Guarantors, the Mortgagors,
the Purchaser, the Banks, The HongKong and Shanghai Banking
Corporation Limited as co-ordinating bank and as security
agent and Belion

Terms:

At completion, which occurred on 30 December 1999

(i) each of the Banks assigned absolutely to the Purchaser
the Assigned Indebtedness aggregating approximately
HK$207,157,568 and all the underlying guarantees and
security over the Group's assets (other than the Mortgaged
Properties). The Purchaser paid to each of the Banks a sum
equal to 18% of the face value of the Assigned Indebtedness
totalling HK$37,288,362.18; and

(ii) each of the Mortgagors has permitted the Secured
Lenders to take possession of the Mortgaged Properties
pursuant to the relevant mortgage instruments in the manner
prescribed in the Bank Debt Purchase Agreement. Each such
Secured Lender shall have recourse solely against any
Mortgaged Property held by it for repayment of the
corresponding secured indebtedness of HK$28,700,000 and
will be entitled to retain any surplus realised on any sale
of the Mortgaged Property.

According to the Bank Debt Purchase Agreement, each
Borrower and Guarantor acknowledged that all of the
Assigned Indebtedness will be repayable upon demand at any
time by the Purchaser giving three banking days' prior
written notice and will continue to be secured by
debentures dated 12 October 1998 and executed by certain
members of the Group creating fixed and floating charges
over their assets and undertaking (other than the Mortgaged
Property) under the same terms of such debentures.

Notwithstanding any Mortgaged Properties being taken
possession of by the Secured Lenders, the Board is of the
opinion that the Company will have sufficient level of
operations and have tangible assets of sufficient value to
warrant the continued listing of the shares of the Company
on the Stock Exchange since all of its retail outlets
within and outside Hong Kong are operated under rental
arrangements. The company was advised by Anglo Chinese
Corporate Finance, Limited.  (Hong Kong Stock Exchange  05-
Jan-2000)

WENDY FOODS: Goes into voluntary liquidation
--------------------------------------------
Wendy Foods, which was formed in 1991 to operate the local
franchise of the US fast-food chain Wendy's, went into
provisional liquidation on Monday after incurring heavy
losses, joining Denny's Food Corporation.

A total of 230 workers were made jobless as a result,
prompting government officials to call urgent meetings with
representatives from the companies and their workers to
work out a "reasonable compensation package," said the
Labour Department.

The closures were the latest in a string of bankruptcies in
Hong Kong in the past two years, including Peregrine
Securities, Yaohan department stores, a local video chain
operator KPS, CA Pacific, Maria's Bakery and Ming Fung
Securities.  More bankruptcies are expected in the coming
months, particularly in the retail and catering sectors.

The territory's economy may be recovering but the
turnaround has been patchy.  The stock market has rallied
and Hong Kong's exports have displayed strong growth
figures but the property, banking and retail sectors are
still languishing.

Automation is also expected to lead to a decrease in the
use of manual labour.  Modern Terminals, the container port
operator controlled by Wharf Holdings, one of Hong Kong's
largest conglomerates, said it had made 100 workers, or 8
per cent of its workforce, redundant after it had spent
more than HK$755m (US$97m) on computerising and automating
its operations.

However, new technology and internet-related companies are
emerging that would create many new jobs, said Dong Tao, an
economist at Credit Suisse First Boston.  (Financial Times
05-Jan-2000)


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

BANK BALI: IBRA sets rights issue by end of January
---------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) wants to
launch Bank Bali's rights issue by the end of this month
because a further delay would inflate the cost of the
bank's recapitalization.

IBRA deputy chairman Farid Harianto said his agency was
consulting with various parties, including the Capital
Market Supervisory Agency (Bapepam), on how to speed up the
process toward recapitalization.

"If you ask me when we want the right issues to be held, I
would say by the end of this month. But everything would
depend on Bapepam," he said.

Bank Bali's rights issue, initially scheduled for last
October, was delayed until early January due to the high-
profile scandal.  The plan again met a hurdle when Bapepam
refused late last month to approve Bank Bali's rights issue
plan due to inadequate disclosure of information.

Bapepam contended that Bank Bali and IBRA failed to provide
necessary details on Bank Bali's shareholders, especially
Deutsche Boerse Clearing AG (DBC) of Germany which
reportedly controls up to 40 percent of the bank.  But
Farid said neither IBRA nor Bank Bali knew about DBC and
who was behind the investor. He argued that Bapepam was
amiss in not being aware of DBC's involvement in the bank.

"Bapepam should have used its authority regarding the
acquisition of Bank Bali's stake by DBC, which was
conducted without a tender offer process," he said.

Farid said IBRA's main interest was to see a speedy
recapitalization of Bank Bali because a further delay would
be costly to the government.  He said President Abdurrahman
Wahid, in an earlier meeting with IBRA chairman Glenn
Yusuf, also expressed his wish to see the recapitalization
of Bank Bali done at "full speed".

If Bapepam does not clear the process of Bank Bali's rights
issue by the end of this month, the issue would have to be
delayed until the end of March.  If that happened, Farid
said, Bank Bali would not be allowed to use its June
financial report as the basis for the rights issue. The
bank would have to use its September financial statement
due to the delay, requiring a further three months for the
completion of the audit.

"The cost of Bank Bali's recapitalization will definitely
increase. But we don't know yet how much it will cost until
a further due diligence is conducted."

The cost of Bank Bali's recapitalization to bring its
capital adequacy ratio to 4 percent was initially estimated
at Rp 4.1 trillion (US$585 million).  Meanwhile, Bank
Bali's acting president Henry Koenaifi said the bank
currently suffered a loss of around Rp 30 billion per month
from negative spread, which is when the bank's interest
expenses are much higher than its investment.

Before his entrance, he said, the bank suffered between Rp
60 billion and Rp 70 billion from negative spread.  Farid
also revealed on Tuesday that two foreign investors and one
investor linked to a local company expressed interest in
acquiring IBRA's stake in Bank Niaga.  The agency will open
bidding for the stake next week, Farid said without giving
a specific date.

The total cost of recapitalizing the bank is estimated at
around Rp 7 trillion.  Farid said IBRA may have to merge
Bank Niaga with Bank Danamon if the agency failed to find
investors for Bank Niaga, or if the bids presented by the
interested investors were considered too low by the
government. (The Jakarta Post  05-Jan-2000)

BANK INDONESIA: Liabilities balloon
-----------------------------------
Bank Indonesia's liabilities may exceed its assets by as
much as 30 trillion rupiah (S$7 billion), an International
Monetary Fund official said today, a shortfall that may
threaten continued aid to the country.

The IMF said it would work with Bank Indonesia - the
country's central bank - and the government to determine
how large a shortfall the bank faces.

"This is an unexpected blow to the government," said an
official at the IMF, which is due to sign letters of intent
on continued aid to Indonesia later this month.

The IMF's comments come as Indonesia's banking industry
tries to re-establish credibility in international markets
and will likely further crimp the ability of the nation's
lenders to recover from the deepest recession in decades.
Still, whatever the difference turns out to be, top
economics minister Kwik Kian Gie today said the government
is prepared to issue bonds to fill the gap in Bank
Indonesia's accounts.

The central bank's financial trouble comes as Indonesia
struggles to reduce dependence on foreign loans to lower
its public indebtedness, which already exceeds its total
annual economic output. That's estimated to be more than
S$260 billion in 1999, according to the central statistics
bureau. (Business Times  04-Jan-2000)

BANK INDONESIA: Debit debate on emergency credits; bonds?
---------------------------------------------------------
Senior ministers say Bank Indonesia has no reason to debit
the account of commercial banks that received the disputed
Rp 51.7 trillion of emergency liquidity credits from the
central bank.

Coordinating Minister for Economy and Finance Kwik Kian Gie
and Minister of Finance Bambang Sudibyo said separately on
Tuesday Bank Indonesia had received government bonds
totaling Rp 164.5 trillion to cover most of the emergency
credits it had extended to commercial banks since late
1997, and, therefore, had no need to debit the recipient
banks.

"What do they want? Do they want to create chaos? Do they?
They do not need to debit the (commercial) banks' account.
What business is it of theirs? This creates chaos, doesn't
it?," Kwik told journalists after meeting with President
Abdurrahman Wahid.

Earlier, Bank Indonesia's governor Sjahril Sabirin
threatened to debit the account of commercial banks which
owed a liquidity debt to the central bank if the government
did not take over the debt.  If that happened, Sjahril
said, the economic cost for the government would be greater
than if it took over the debt itself.

Speaking to reporters at his office, Bambang said if Bank
Indonesia debited the accounts of the indebted commercial
banks it would force those banks to stop their operations
and hence disrupt the country's payment system.  He
therefore called on BI officials not to issue damaging
statements in the name of Bank Indonesia as it would only
undermine the central bank's credibility.

"BI can not be and will not be taken as a hostage like
that," he said. "BI can not be used as a cover by its
people."

Bambang said he may sue the media, experts and officials
who make statements that could result in higher government
costs to recapitalize the central bank.  On Monday, Bank
Indonesia's deputy governor Miranda S. Goeltom warned the
forced announcement of the damning audit report on BI by
the Supreme Audit Agency could affect BI's Yankee bonds,
its credibility to guarantee letters of credits issued by
local commercial banks and its ability to absorb government
bonds used to recapitalize the country's rotten commercial
banks.

Bambang said the government would continue to pursue those
who had a role in bankrupting the central bank with the
irresponsible disbursement of huge liquidity supports to
commercial banks.

"Investigations into those people will continue, but Bank
Indonesia as an institution must be saved," he said.

He noted the central bank's emergency liquidity loans had
supplied the largest cash flow in the country since 1997.
And he suspected that the loans were disbursed "through a
pipeline with a very weak control system.  If there are
corruptions, probably the largest will be there (in the
disbursement of the emergency liquidity credits) because
that is the largest amount and disbursed through a weak
control mechanism," he said.

Bambang said the problem was not whether or not the
government accepted the disputed Rp 51.7 trillion in BI's
liquidity supports, because the financial impact on the
government would be the same.  If the government agreed to
take over the debt, he said, the government would have to
issue bonds to cover it. And the government had done that.
Likewise, if the government rejected the debt, it would
still have to issue bonds to recapitalize the central bank
as a result.

The problem, Bambang said, rested on the accountability of
the central bank in disbursing such a huge amount of money
with little control.  He said the government had tasked the
Development Finance Comptroller to audit commercial banks
that had received BI's emergency liquidity supports. The
government had also asked the House of Representatives to
task the Supreme Audit Agency to conduct investigative
audits on BI over the disbursement of the emergency loans.

"We need to clarify whether or not there were
irregularities in their disbursement. People need to know
that." (The Jakarta Post  05-Jan-2000)

BANK PDFCI: Delisted following merger
-------------------------------------
Bank PDFCI was delisted from the Jakarta Stock Exchange
(JSX) here on Tuesday following the finalization of its
merger with Bank Danamon.

"The merger of Bank Danamon and Bank PDFCI has received the
approval of the minister of justice," the JSX said in a
statement made available to The Jakarta Post.

The statement said the trading of Bank PDFCI shares was
halted the day of its delisting on Jan. 4, but the shares
could be traded as Danamon shares until Jan. 11, on which
date Bank PDFCI shares can be converted into Bank Danamon
shares, at two Danamon shares for every PDFCI share.  As a
result, Bank Danamon will have to issue 45.37 billion new
shares, or twice as many shares of Bank PDFCI prior to the
merger, JSX said.

Bank PDFCI shares were at Rp 350 while Bank Danamon was at
Rp 225 prior to the merger, with outstanding share volume
in the market of 22.7 billion and 217.3 billion,
respectively.  According to the JSX, the share price of
Bank Danamon following the merger will be set at Rp 225.
This figure is the weighted average of the share prices of
the two banks before the merger.

The total combined volume of Bank Danamon shares after the
merger will be 262.6 billion shares, JSX said.  The merger
of Bank PDFCI and Bank Danamon was initially part of the
government planned merger of nine banks which was to take
place later this year. These nine banks were Bank PDFCI,
Bank Duta, Bank Nusa Nasional, Bank Pos Nusantara, Bank
Rama, Bank Tamara, Bank Tiara Asia and Jaya Bank
Internasional.

But sources said if these nine banks had merged, the
resulting bank would not have met the required minimum 4
percent capital adequacy ratio (CAR).  "Merging Bank
Danamon with PDCI would result in a CAR level of above 10
percent," the source said.

Bank Danamon and Bank PDFCI are two of a number of banks
nationalized by the government because of their
deteriorating financial performance triggered by increasing
numbers of bad loans.  Following the nationalization of
Bank Danamon, its senior executives were replaced by top
people from Bank PDFCI.

Bank PDFCI was nationalized by the government after it
almost collapsed in 1998 in the wake of the economic
crisis. (The Jakarta Post  05-Jan-2000)


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

DAEWOO ELECTRONIC COMPONENTS: Gets loan from Chinese bank
---------------------------------------------------------
Daewoo Electronic Components said yesterday that its
Chinese affiliate, Shangdong Daewoo Electric, received a
new loan of $2 million from China Construction Bank.

The company also obtained a maturity extension on a loan of
$2 million with the People's Bank of China.  Daewoo
Electronic Components is the first affiliate of Daewoo
Group to get a new loan from a foreign bank since the
conglomerate was placed under a debt workout.  The new loan
was extended at 7.19-percent interest for one year. (The
Korea Herald  05-Jan-2000)

DAEWOO MOTOR CO.: Ford to meet Daewoo creditors
-----------------------------------------------
Ford Motor Co., affirming that it is "serious" about its
bid for Daewoo Motor Co., said Tuesday it would send its
top Asia executive and a former Daewoo executive to meet
this week with Korea Development Bank, the South Korean
automaker's biggest creditor.

Paul Drenkow, Ford's Asia-Pacific executive director, is
returning to Seoul, which he last visited in early
December, with Ulrich Bez, a former Daewoo Motor executive
whom Ford said it hired this week. Daewoo Motor, a unit of
ailing Daewoo Group, owes creditors 18.6 trillion won
($16.4 billion), making a precise valuation of the company
difficult.

"This should help dispel the notion that we aren't
interested in making a serious bid," said Ford spokesman
Jim Bright.

Mr. Drenkow's return trip is viewed as a challenge by Ford
to General Motors Corp., which is also seeking Daewoo. Ford
and GM battled to buy Kia Motors Corp., Korea's third-
largest automaker, in which Ford owned a 9.4 percent stake,
but both lost that battle to Hyundai Motor Co.

For the world's two largest automakers, South Korea offers
a base to expand sales in Asia, which is expected to
generate most of the industry's growth in the next two
decades. Daewoo Group needs to sell its auto unit to help
stave off insolvency and begin to repay its $73 billion
debt

News of Ford's renewed interest spurred South Korean
automobile shares. Hyundai Motor Co., Ssangyong Motor Co.
and Daewoo Motor Sales Corp., which trades as a proxy for
its unlisted parent, all surged by close to their 15
percent daily limit. Hyundai rose 2,700 won to 20,700.
Ssangyong rose 125 to 985, and Daewoo Motor Sales rose 455
to 3,505.  Also Tuesday, Daewoo Motor Co.'s president, Jung
Ju Ho, reiterated his opposition to selling the ailing
automobile unit in pieces.

"It's not desirable to sell overseas assets in pieces," he
said, adding that there was no need for local creditors to
hurry a sale.

Meanwhile, the South Korean government is asking banks,
trust companies and other financial institutions to make
loss provisions for more than 50 percent of certain loans
to Daewoo affiliates. Many lenders already have set aside
provisions of 30 percent to 50 percent of their exposure to
Daewoo.

The more stringent measures - more than 50 percent - are
for loans to affiliates Daewoo Capital Management, Diners
Club International Korea and Daewoo Corp., the biggest and
most indebted unit. (The International Herald Tribune,
Business Times  05-Jan-2000)

SAMSUNG MOTOR: Renault confirms talks with Samsung
--------------------------------------------------
Renault, the French car maker may be poised to expand its
Asian empire after it confirmed on Tuesday that it had
started exclusive negotiations with South Korea's Samsung.

The French company, which last year acquired 36.8 per cent
of Japan's Nissan Motor, said the negotiations covered its
"possible acquisition of all or part of Samsung Motors'
operating assets".

The talks began on December 30 and were expected to last
for two to three months.  Renault emphasised it would not
take over the Korean company's debt and said the
negotiations concerned only automobiles.  There appears to
be some prospect of the French group also striking a deal
in Korea involving trucks. Last month, Patrick Faure,
chairman of Renault VI, its truck-making unit, told the
Financial Times that Renault VI had held talks with Samsung
and Daewoo.

Any acquisition of Samsung Motors' assets would be on a
much smaller scale than the Nissan deal. Samsung Motors
began operations only in 1998, with Samsung Group
announcing last June that it was placing its fledgling car
maker under court receivership.  Renault indicated
yesterday that the Samsung Motors assets were one factory,
one product line and a dealer network.

An acquisition would "allow the Renault-Nissan alliance to
achieve a broader base in Asia and in particular to acquire
a privileged access to the Korean market."  Confirmation of
Renault's interest in Samsung Motors emerged as a team from
Ford, the world's second largest car maker prepared to meet
creditors of Daewoo Motors to discuss a possible offer for
the debt-burdened South Korean car maker

With Renault's alliance with Nissan in place, taking on
Samsung has already raised concern among some analysts that
the French company may be taking on more than it can
handle. The Renault chief executive, Louis Schweitzer, has
insisted further acquisitions were not necessary for
Renault.

"I can't say if this is a judicious move on the part of
Renault, as Nissan is already a big enough meal to
swallow," said Didier Orand, an analyst at Wargny Societe
de Bourse in Paris. Still, "Korea is a very closed market
and this would be one good way of getting in."  (Financial
Times, International Herald Tribune  05-Jan-2000)


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

PARK MAY BHD: Park May finalises debt scheme
--------------------------------------------
Park May Bhd, which has outstanding debts of RM146mil, has
successfully finalised a debt restructuring scheme with its
lenders and suppliers.

The scheme was finalised on Dec 30 with the assistance of
the Corporate Debt Restructuring Committee (CDRC).  A CDRC
statement said the debt restructuring scheme involved a
capital reduction from RM45mil to RM36mil for Park May and
converting 20% of its outstanding bank loans into rights to
provisional allotment of shares on the basis of one right
for every RM1 of debt owed by the company.

Each of the rights carries the right to the issuance and
allotment of one new ordinary share of RM1 of the company.
The statement said it had also been proposed that the
lenders would offer for sale the rights to the
shareholders. If the offer is not fully taken up, Park May
would issue and allot new fully paid-up ordinary shares at
RM1 each to the lenders.

The CDRC said the balance of 80% of Park May's debt would
be converted into redeemable convertible bonds (RCB) at
nominal value which would include a premium equivalent to a
yield to maturity of 10%.  According to the CDRC, the
salient features of the bonds were:

* The bonds will have a tenure of five years, a 4% coupon
payable semi-annually, with a yield to maturity of 10% per
year.

* The proposed conversion price of the RCB is at the higher
of RM1.50 or 30-day weighted average price preceding the
price-fixing date (after Securities Commission approval and
before printing of the circular to shareholders).

* The amount outstanding shall be convertible at the option
of the RCB-holders into Park May shares any time after a
two-year moratorium period.

* Notwithstanding the above, if Park May is able to redeem
stipulated amounts of the RCB by the end of the semi-annual
period commencing from the 24th month as scheduled
(cumulative basis), the right of conversion will be
deferred on a six monthly period basis.

As for Park May's suppliers, the CDRC said the debt
restructuring would be carried out along these broad terms:
* 10% of the outstanding debt will be converted into equity
at 30 days weighted average market price preceding the
price-fixing date.

* The 90% balance shall be converted into zero coupon
irredeemable convertible unsecured loan stocks (Iculs). The
Iculs will be convertible any time after a one-year
moratorium period at the higher of 10% premium over the 30
days weighted average market price or RM1.90.

Park May and its advisers will soon submit the debt
restructuring scheme to the relevant authorities for
approval. (Star Online  05-Jan-2000)


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

PILIPINAS SHELL PETROLEUM CORP.: Inks $110M refinancing
-------------------------------------------------------
Pilipinas Shell Petroleum Corp. (Pilipinas Shell) signed a
$110-million medium term loan agreement with Singapore
branch of Norddeutsche Landesbank Girozentrale.

"Proceeds of the loan will retire or refinance short-term
bridge loans," Pilipinas Shell said in a statement.

The short-term loans amounting to more than $200 million
was made over a five-year period for the rehabilitation and
upgrading of its refinery in Tabangao, Batangas.  The loan
is in fulfillment of Pilipinas Shell's commitment to the
Bangko Sentral ng Pilipinas (BSP) that all its bridge
facilities will be transformed into terms financing.

"The cost of this medium-term loan is below sovereign
market price, as proof of the lenders' confidence in the
company and the Philippine economy," Pilipinas Shell said.

Also involved in the loan facility is ING Barings while the
other participating banks were Citibank N.A., and Standard
Chartered Bank. (The Philippine Star, Manila Bulletin  05-
Jan-2000)

SOLID BANK CORP.: Scotiabank move called "malicious"
----------------------------------------------------
The Madrigal group has accused the Bank of Nova Scotia
(Scotiabank) of filing a "malicious and unfounded" case
against its family in an attempt to stall the sale of its
Solid Bank Corp. (Solidbank) shareholdings to the
Metropolitan Bank and Trust Co. (Metrobank).

For its part, Scotiabank said it was kept "in the dark"
while the Madrigal family was negotiating for the buyout of
its shares by Metrobank.  Augusto Macam, lead counsel for
Scotiabank, said the Madrigal clan has not been transparent
in its transactions and has violated provisions of their
shareholders' agreement with Scotiabank. Macam cited, for
instance, a provision which calls for proper disclosure of
any plans to sell their shareholdings in Solidbank,
including submission of offer sheets in order for the other
party to make a proper evaluation of the offer because it
has the right of first refusal.

In yesterday's hearing of the case at the Securities and
Exchange Commission (SEC) Francis Lim of the ACCRA Law
Offices, representing the Madrigal family, said Scotiabank
is aware that the sale of the Madrigals' shares in
Solidbank, including that of the other smaller shareholders
led by the Lim family, is perfectly legal.

"Scotiabank is stalling because they either do not have the
money to buy or match the sale price or it does not have a
designated buyer," Lim said, stressing Scotiabank's ploy is
to extend the 30-day period in which it can match the offer
of Metrobank to the Madrigal family and the other
shareholders. Metrobank's offer sheet reportedly reached
P7.5 billion.

As this developed, Scotiabank is demanding that the
Madrigal family submit the alleged offer sheet of Metrobank
and the escrow agreement between the two parties for the
sale of the former's shareholdings in Solid Bank.  (The
Philippine Star  05-Jan-2000)

UNIWIDE SALES REALTY AND RES.: Seeks SEC okay of settlement
-----------------------------------------------------------
The Uniwide Sales Realty and Resources Corp. (USRRC), a 98-
percent owned subsidiary of Uniwide Holdings Inc. (UHI), is
seeking the approval of the Securities and Exchange
Commission (SEC) for a P1.04 loan settlement agreement it
signed with United Coconut Planters Bank (UCPB).

USSRC entered into a memorandum of agreement (MOA) with
UCPB to settle about P1.04 billion of its outstanding
loans. The amount covers principal and interest obligations
with UCPB.  In a disclosure to the SEC, UHI said the MOA
will facilitate the implementation of its proposed
rehabilitation plan which includes dacion en pago or
payment in kind proposals submitted last year to the
regulatory body for its approval.

The three-pronged rehabilitation program of UHI calls for
an immediate equity infusion in the retail business, dacion
en pago of non-operating assets and restructuring of
remaining liabilities.  UHI appears to be on track with its
recovery plan.

Recently, the SEC approved the sale of one Uniwide
subsidiary, First Paragon Corp. (FPC) for P145 million to
IMart International. FPC owns and operates 44 retail stores
called Uniwide Family Store with various leased areas in
Luzon.  SEC Chairman Perfecto Yasay Jr. said the sale of
FPC is in the best interest of FPC's creditors which
include Equitable Banking Corp., PCI Bank and Philippine
Bank of Communications. The banks did not object to the
sale of FPC.

The interim receivership committee of Uniwide has
recommended the approval of the sale of FPC to IMart last
October, noting that the assets of the company are fast
deteriorating and it would be better to convert these into
cash, the proceeds of which will be held in escrow pending
the approval of the proposed rehabilitation plan.

The firm did not disclose which of its properties will be
turned over to UCPB. However, sources said USRRC owns
several properties in Iloilo, General Santos City, Bulacan,
Cavite and Laguna.  USRRC also owns the Metromall in Las
Pi¤as, but this property has been used as a collateral
cover for loans incurred with the Philippine National Bank
and Allied Bank.

The Gow-led company needs to put up at least PhP1.1 billion
($27.6 million) to service its maturing loan and interest
payments next year. The debt payment suspension issued by
SEC is set to expire in February.

The Uniwide group -- including its affiliates -- has PhP11
billion ($276 million) in total unsettled obligations. The
listed firm corners PhP2.2 billion ($55.2 million) of the
figure.  UHI's long-term debts will have to be repaid over
a five-year period beginning year 2000. The bulk of which -
- reaching PhP1.05 billion ($26.4 million) -- will have to
be collected next year.  (The Philippine Star, Business
World  05-Jan-2000)


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

BANK OF THAILAND: Central bank note discounting practices
---------------------------------------------------------
The Bank of Thailand's investigative committee yesterday
rebutted allegations levelled at three central bank
officials over the discounting of promissory notes between
three commercial banks and now-defunct Finance One.

The officials, who later joined the Bank of Thailand, were
top executives of the commercial banks at the time of the
transactions.  The committee, responding to allegations by
the Attorney General's Office that the three men had been
implicated in fraud, insisted yesterday that the deals had
not been irregular.

The three officials are Kitti Patpong-pibul, a deputy
governor; Chaktip Nitibhon, an assistant governor; and
Kietchai Sophasathienpong, a director of the Financial
Institutions Policy Department who was suspended from duty
on the basis of his alleged involvement in a fraud
committed by former top executives of the Siam City Bank,
where he was a former senior vice-president.

Rattakorn Nimwattana, assistant governor of the central
bank and a member of the investigative committee, said the
committee had submitted its findings to central bank
governor M.R. Chatumongol Sonakul and Finance Minister
Tarrin Nimmanahaeminda.  He said the transactions between
the commercial banks-Siam City Bank, Nakornthon Bank and
Credit Agricole Indosuez-and Finance One, abided by the
central bank's regulations and were normal banking
transactions.

Pin Chakkapak, Termchai Pinyawat and Samran Kanokwatanawan,
former senior executives of Finance One, are alleged to
have embezzled more than 2.1 billion baht from the company.
They are alleged to have used two subsidiaries of Finance
One-Ekapak Co and Joint Business Management Co-to issue
several promissory notes and then discount them with the
three banks which, in turn, rediscounted the notes to
Finance One on the same day they obtained the notes.

At that time, Mr Kitti was managing director of Nakornthon
Bank, Mr Chaktip was country manager of Credit Agricole
Indosuez and Mr Kietchai was a senior vice-president of
Siam City Bank.  Mr Rattakorn said the committee took the
view that it was normal for commercial banks to rediscount
notes on the same day they obtained notes in order to avoid
risk.

However, he said that the three banks had been used by
Finance One executives in siphoning money from the company
because the finance house, at that time, was barred from
lending to its subsidiaries.  As the illegal transactions
went through the three banks, there were grounds for the
Attorney General's Office to suspect the banks and their
executives, Mr Rattakorn said.

In August last year, the state attorney had told the police
to take action against the three banks and their authorised
executives, based on the fraud allegations against Mr Pin,
Mr Samran and Mr Termchai.  But the Bank of Thailand argued
that the three commercial banks had nothing to do with the
alleged fraud. It appointed the investigative committee,
chaired by Visanu Krua-ngarm, the secretary-general to the
cabinet, to examine the case.  Mr Rattakorn said there were
loopholes in the Bank of Thailand's regulations.

"They prohibit only direct lending by parent companies to
subsidiaries and do not prohibit indirect lending through
other institutions," Mr Rattakorn said.

The evidence collected by the central bank did not point to
any offending or breach of regulations.  "However, if the
police and the state attorney believe that the three banks
abetted Finance One in committing fraud, then the police
will have to prove it," he said.

The loopholes in regulations could be corrected only by new
legislation, he added. (Bangkok Post  05-Jan-2000)

EASTERN STAR REAL ESTATE: Reports debt rehab signing
----------------------------------------------------
William Cheng, Managing Director of Eastern Star Real
Estate Public Company Limited, has reported to the Stock
Exchange of Thailand that on 21 December 1999, Eastar
signed a Debt Restructure Agreement with Asset Management
Corporation for loan and interest of Baht 51 million by
debt to assets swap. The company gains Baht 42 million from
this transaction, the report stated.  (Stock Exchange of
Thailand 05-Jan-2000)

SIAM CEMENT PLC: Set to sell 30 million shares
----------------------------------------------
Siam Cement Plc, Thailand's largest industrial
conglomerate, may go ahead with plans to sell 30 million
new shares to foreign investors in coming weeks, a source
familiar with the plan said.

"I would say the company is planning on going to the market
in a few weeks and I suspect it will happen some time after
the second week of the January," the source said.

Siam Cement pulled its issue of 40 million shares last
September citing weak market sentiment in Thailand and the
region and Y2K fears. It had planned to sell 30 million to
foreign institutional investors and reserve the rest for
employees.  The source said Siam Cement had been talking to
investors over the past few weeks and was expected to
announce its plans after concerns over Y2K computer bug-
related problems eased.

He said pricing of the new shares now may be higher than
the initial Bt860 to Bt900 per share sought.  Siam Cement's
group chief financial officer, Aviruth Wongbuddhapitak,
said he would neither deny nor confirm the speculation on
the share issue's timing.

But he noted the company had not scrapped the issue.
"We don't have a definite plan, there is no set target
date, and we have not scrapped the plan. We will come out
with a share issue as soon as we have the opportunity," he
said.

The issue was to have followed a move to hike the firm's
registered capital by Bt400 million to Bt1.6 billion
through an issue of 40 million new shares.  To accommodate
the new issue, the company had also raised its foreign
ownership limits to 40 per cent from 25 per cent.

At that time, the company had hoped to raise up to Bt26
billion from the share sale to lower its foreign debt
burden. It said later that it had failed to achieve its
targeted price range of Bt860 and Bt900 a share.  Aviruth
said his firm would be satisfied if it got over Bt1,000 a
share.

"The pricing would depend on the market conditions at the
time of issue. You can forget the last pricing. We would be
satisfied if we get above Bt1,000 a share," he said.

Aviruth said the company had a good idea about the kind of
investors it was going to target.  "We may not do a
roadshow, as we have done a complete one last time around.
All we need to do is to update the potential clients," he
said.

An analyst monitoring the issue said that the company had
already done some book building in the second half of Dec
1999. All Siam Cement was waiting for was the right time to
announce the deal.  He expected Siam Cement to go ahead
with the planned new issue but in smaller tranches.

"The market may not have an appetite for such a large chunk
of shares, and I suspect Siam Cement may break the 30
million shares into smaller tranches and sell them," he
said.

In addition, SCC reported in statement yesterday that
individual investors have given a warm response to the
SCC's debentures worth Bt50 billion, which was launched
between Oct and Dec 1999, and are now being traded in
the secondary market due to strong liquidity with selling
prices higher that subscription prices, and the investor's
confidence in the company. The active trading was primarily
due to the higher yields of around 8 to 10.5 per cent
compared with bank deposit rates around 4 to 5 per cent.
(The Nation  05-Jan-2000)

SRITHAI SUPERWARE PLC: Reports rehab approval to SET
----------------------------------------------------
Pursuant to the Court Order on May 28, 1999, Srithai
Superware Public Company Limited entered a formal
Rehabilitation Process and SGV-Na Thalang & Co., Ltd. was
appointed as the Planner. The vote at the Meeting of
Creditors on December 20, 1999 approved the Business
Reorganization Plan of Srithai Superware Public Company
Limited.

Pursuant to Part 8 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 considers on the resolution of the Meeting
of Creditors in respect of the approval of the Business
Reorganization Plan. At the hearing on December 30, 1999,
the Court approved the Business Reorganization Plan of
Srithai Superware Public Company Limited pursuant to
section 90/42 and 90/58 of the Bankruptcy Act B.E. 2483
(A.D. 1940) as amended by Bankruptcy Act (No. 5) B.E. 2542
(A.D. 1999).

SGV-Na Thalang & Co., Ltd. Srithai Superware Pcl. by Andrew
Donald Robert Gordon and Sanan Angubolkul, on behalf of
Plan Administrator President.  (Stock Exchange of Thailand
05-Jan-2000)


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