TCRAP_Public/000107.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

            Friday, January 7, 2000, Vol. 3, No. 5

                                    Headlines


* C H I N A  &  H O N G  K O N G *

MIGHTY CLOTHING CO. LTD.: Facing winding up petition


* I N D O N E S I A *

BANK INDONESIA: Gov't assures aid in liquidity crisis
BANK INDONESIA: Bank chief may be forced out
BANK INDONESIA: President asks House to replace BI governor
PT BIMANTARA CITRA: Reaches debt agreement with IBRA
PT PAITON: Audit ties Suharto family to co. corruption
PT SURYAMAS DUTAMAKMUR: Loses derivative suit
PT TIRTAMAS COMEXINDO: Hashim criticizes bankruptcy action


* K O R E A *

DAEWOO GROUP: Bad-debt agency to buy Daewoo bonds
DAEWOO GROUP: Public bailout approaching W100 Tril.
DAEWOO MOTOR CO.: Creditors to sell off by end of June
HYUNDAI GROUP: Park Sae-yong scapegoat of power struggle?
SAMSUNG MOTOR CO.: Wants acquisition done by end of March


* M A L A Y S I A *

TIME ENGINEERING BHD: Rejects offers, to go it alone


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

AMALGATED SECURITIES CORP.: SEC rejects FEBTC acquisition  
NATIONAL STEEL CORP.: PNB may condone its debt
NATIONAL STEEL CORP.: Enrile seeks Senate probe of NSC deal
SHEMBERG MARKETING CORP.: To make debt-for-asset swap
SOLID BANK CORP.: SEC sets new hearing


* T H A I L A N D *

SAHAVIRIYA OA PLC: Realigns 14 subsidiaries into 4 units
THAI PETROCHEMICAL INDUSTRY: Recapitalization ahead
THAI TELEPHONE & TEL.: Clarifies debt restructure for SET


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

MIGHTY CLOTHING CO.LTD.: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance
has scheduled a hearing for January 26 on the petition of
Wong Wing Sze for the winding up of Mighty Clothing Company
Limited. A notice of legal appearance must be filed on or
before January 25.


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

BANK INDONESIA: Gov't assures aid in liquidity crisis
-----------------------------------------------------
The Indonesian government will fully support Bank Indonesia
in the event of a liquidity crunch, Senior Economics
Minister Kwik Kian Gie said.

"The government has the obligation to help the central bank
with any problem it has been facing, he said.

A state audit recently revealed Bank Indonesia was near
insolvency and had mishandled around 51 trillion rupiah
($7.09 billion) of government money channeled into ailing
banks in 1997 and 1998.  Bank Indonesia Governor Sjahril
Sabirin said Sunday the bank won't have a problem honoring
its obligations, while Finance Minister Bambang Sudibyo has
said the government would recapitalize the bank if it
lacked equity.

Meanwhile, the news that the central bank may be
technically bankrupt may delay critical talks on
Indonesia's official debt, said Takahira Ogawa, sovereign
analyst at Standard & Poor's Corp. in Singapore.  The
International Monetary Fund, which is leading a massive
bailout for Indonesia, on Monday called on the central bank
to adopt "corrective" measures. The IMF said the corrective
steps would be included in a letter of intent to be signed
this month.

That would clear the way for fresh loans from the IMF and
other multilateral agencies.  It would also open the door
for new debt talks with the Paris Club, the group of
foreign creditor governments that usually acts only after a
country has signed up under an IMF or World Bank program.

"If (the Bank Indonesia scandal) will affect the lending
stance of the IMF/World Bank . . . that's going to affect
the timing of the Paris Club talks," said S&P's Mr. Ogawa.

S&P will be monitoring closely any progress or delay in the
Paris Club talks, which are scheduled to begin in late
January or early February, he said.  Indonesia's foreign
debt totals 110% of gross domestic product. The country is
heavily independent on foreign assistance. Indonesia has
already rescheduled a first round of Paris Club debt, which
kept debt repayments to $2 billion, but only for the
current year ending March 31, 2000. Foreign debt repayments
are expected to soar to about $5 billion in 2000, and $9
billion a year in 2001 and 2002.

Progress in the IMF and subsequent Paris Club debt talks is
more important to Indonesia's finances than specific
questions over Bank Indonesia's technical solvency, because
a successful conclusion will open the door to new funds,
said Mr. Ogawa. (The Asian Wall Street Journal  05-Jan-
2000)

BANK INDONESIA: Bank chief may be forced out
--------------------------------------------
Indonesian President Abdurrahman Wahid is considering
firing the central bank governor after the release of an
audit suggesting that Bank Indonesia may be technically
bankrupt, a senior parliamentarian said on Wednesday.

"Considering the current situation in BI (Bank Indonesia),
the president has proposed that the BI governor be
replaced," Akbar Tanjung, speaker of the country's lower
house of parliament, the People's Representative Council
(DPR), said.

Mr Wahid was not immediately available for comment. But the
move comes amid growing speculation that he is planning a
cabinet reshuffle and an overhaul of the bureaucracy to
clean out figures implicated in corrupt business dealings
under past governments.  Any attempt to fire Sjahril
Sabirin, the central bank governor, will also be the first
significant test of Indonesia's central bank since it was
transformed into an independent monetary institution last
May.

Mr Tanjung said that while the parliament agreed with Mr
Wahid's request, it wanted to delay action until after a
second audit to investigate whether there was any
wrongdoing on the part of the governor.  Under the new
central bank law, a governor can only be removed with the
approval of the parliament if, among other things, there is
evidence of corruption or wrongdoing on his part.

Mr Tanjung said parliament wanted the investigative audit
to be completed by the end of March. It was also demanding
the government conduct a separate evaluation to determine
the central bank's true financial position, including how
much money would be needed to recapitalise it.  The
original audit, details of which were released last Friday,
was conducted by a government agency, the Supreme Audit
Board, helped by international consultancy KPMG.

While details of many of its findings remain sketchy, the
board said it identified widespread problems in the central
bank's bookkeeping, including its treatment of about
Rp51,000bn ($7bn) which was injected into the banking
system two years ago during the country's financial crisis.
The money was intended to stem runs on deposits in the
commercial and state banks.

However, much of it is believed to have been lost abroad in
the form of capital flight.  The board has said there were
also indications of losses over and beyond this amount.
(Financial Times  06-Jan-2000)

BANK INDONESIA: President asks House to replace BI governor
-----------------------------------------------------------
President Abdurrahman Wahid has asked the House of
Representatives to replace Bank Indonesia (BI) Governor
Sjahril Sabirin following the disclosure of the damning
audit report on the central bank, House Speaker Akbar
Tandjung said on Wednesday.

"Considering the current situation at BI, the President has
proposed that the BI governor be replaced," Akbar told
journalists at the House.

Akbar, however, said that the House would rather wait until
the Supreme Audit Agency (BPK) completes its investigative
audit on the central bank to determine if there is
malfeasance.

"It's true that the plan is there, but the House has to
refer to the law, which stipulates that the replacement of
the BI governor is only permitted if, among other things,
there are indications of banking crimes."

Sjahril separately said that he had no problem with the
government and House's plan to remove him. "It's all right.
We stay calm here."

The fate of Sjahril, Akbar said, should depend on the
results of BPK's investigative audit, which should be
completed by March 31.  BPK's investigative audit is to
follow up on the results of its general audit on Bank
Indonesia's balance sheet of May 17 -- the date when the
central bank became independent of the government.

The agency tagged a "disclaimer" or "no opinion" label on
its audit of Bank Indonesia because of serious weaknesses
in the central bank's internal control.  The results of
BPK's general audit on Bank Indonesia's balance sheet of
May 17 indicated the central bank's books were in the red
and that it needed recapitalization.

Minister of Finance Bambang Sudibyo said on Tuesday that
the government was committed to recapitalizing Bank
Indonesia, no matter what the cost, and to ensure a minimum
capital of Rp 2 trillion (US$285 million).  The cost of
recapitalizing Bank Indonesia would be equal to the central
bank's negative equity plus the Rp 2 trillion capital,
Bambang said.

Coordinating Minister for the Economy, Finance and Industry
Kwik Kian Gie said on Wednesday that the recapitalization
of Bank Indonesia would not burden the government's budget
as the government would issue bonds to recapitalize the
central bank.

"Does the audit on BI have any implication on the state
budget? Not at all. The international societies know that
the audit on BI does not affect BI's solvability and
liquidity."

Akbar said the House would support the government's
recapitalization of Bank Indonesia and would ask BPK to
conduct due diligence on the central bank to determine the
true status of its books.

"The general audit on BI by BPK must be followed up by an
investigative audit to find out details of several issues
including BI's emergency liquidity support and equity
status," he said.

Akbar also called on the Attorney General's Office to
conduct a thorough investigation into the alleged
irregularities in the central bank.

"The Attorney General's Office should follow it up in court
if it finds any irregularities in Bank Indonesia," he said,
adding the House would also ask the government to follow up
the audit agency's findings on the central bank.

Asked whether the House would propose a reshuffle in the
central bank's board of governors, Akbar said that would
depend on the Attorney General's Office's investigation
into the alleged irregularities.

"If irregularities are found, they should be processed in
court. According to law, the House has the authority to
propose a reshuffle of the central bank's governor, deputy
governor and directors if crimes are found," he said.
(The Jakarta Post  06-Jan-2000)

PT BIMANTARA CITRA: Reaches debt agreement with IBRA
----------------------------------------------------
The Indonesian Bank Restructuring Agency has reached a
debt-to-equity agreement with PT Bimantara Citra, a company
owed by a son of former President Suharto, to restructure
its $23.1 million debt.

Ronald Sinaga, one of the group heads of IBRA's loan-
restructuring division, said the debt-restructuring
agreement will enable the agency to take stakes in two of
Bimantara Citra's units. IBRA will get a 25% stake in PT
Plaza Indonesia Realty and a 13.8% share in PT Plaza
Nusantara Realty.  A memorandum of understanding regarding
the restructuring will be signed next week, Mr. Sinaga
said.

IBRA is Bimantara Citra's majority creditor. The company
has a total debt of $45 million. Bimantara Citra is one of
18 companies under the Bimantara group, which is owned by
Bambang Trihatmodjo, the middle son of former President
Suharto.  Mr. Sinaga said the total debt of Bimantara group
is 3.4 trillion rupiah (472.6 million) and $275 million,
out of which is 1.5 trillion rupiah is owed to IBRA. About
1.4 trillion rupiah of Bimantara's debt to IBRA was
personally guaranteed by Mr. Bambang, Mr. Sinaga said.

Meanwhile, IBRA expects to launch the Bank Bali rights
issue by the end of the month, said the agency's deputy
chairman, Farid Harianto. Speaking to reporters at a news
conference, Mr. Farid said IBRA Chairman Glenn Yusuf had
met with President Abdurrahman Wahid, who expressed his
wish to see a speedy execution of the long-delayed Bank
Bali rights issue.

Mr. Wahid "wants the recapitalization of Bank Bali to be
done at full speed," Mr. Farid said.

The rights issue is the first step in the government-
sponsored bank-recapitalization program, under which the
government will act as the standby buyer in the rights
issue. The rights issue was initially scheduled for
October, but the outbreak of the Bank Bali scandal prompted
IBRA to delay the issue to early January.  However, the
rights issue again hit a snag as the Capital Markets
Supervisory Agency, which oversees all stock-market
activities, refused to approve the issue pending
clarification of the bank's ownership.

Since IBRA won't likely get the supervisory agency's
approval in time for an early January rights issue, the
issue is expected to be delayed further.  Mr. Farid warned
that if the rights issue isn't done by the end of the
January, IBRA has to conduct another due diligence to
reassess the cost of recapitalizing Bank Bali.

The local bank suffers from a negative interest spread and
loses about 30 billion rupiah a month, Mr. Farid said.
The cost of restoring Bank Bali's capital base is estimated
at 4.1 trillion rupiah.  Under the latest recapitalization
plan, the government will buy the unsubscribed shares after
the rights issue. It will then offer the shares to
interested investors through an open bidding process.

Mr. Farid said no preferential treatment will be given to
any parties, including Standard Chartered Bank. The British
bank initially signed an investment agreement with IBRA to
buy up to 20% of Bank Bali after the rights issue, and
another contract to manage the bank in the run-up to the
rights issue.  The agreements were scrapped last month
following strong opposition from Bank Bali staff, who
alleged that the agreements were drawn up in a
nontransparent manner, which disadvantaged the bank's
previous owners.

Separately, IBRA said three investors are interested in
buying a stake in PT Bank Niaga to help recapitalize the
listed bank. Mr. Farid said two of the potential investors
are foreign companies and the other one is "linked to a
local company."

The agency will open bidding for the Bank Niaga stake next
week, said Mr. Farid. He didn't give a specific date. The
government plans to recapitalize Bank Niaga to bring the
bank's capital-adequacy ratio to 4%. The total cost of
recapitalizing the bank is around seven trillion rupiah.
Mr Farid said IBRA may have to merge Bank Niaga with PT
Bank Danamon Indonesia if the agency fails to find
investors for Bank Niaga. (The Asian Wall Street Journal  
05-Jan-2000)

PT PAITON: Audit ties Suharto family to co. corruption
------------------------------------------------------
A government audit alleges a consortium of foreign
companies paid bribes and inflated costs in the development
of a multibillion-dollar power project, the most serious
charges levied to date against multinationals that
partnered with former Indonesian President Suharto's
family.

The foreign-led consortium, which comprises units of Edison
Mission Energy Co. and General Electric Co. of the U.S., as
well as Mitsui & Co. of Japan, denied the charges and said
it is seeking the publication of its development costs to
support its claims. The group also said that it recognizes
"a new approach to issues" is needed in developing the
power plant now that a popularly elected leader has
succeeded Mr. Suharto.

The consortium entered Indonesia in 1991 to develop the
1,230-megawatt Paiton 1 coal-fired plant on the eastern end
of Java. The group's Indonesian partner is Hashim
Djojohadikusumo, the brother-in-law of Mr. Suharto's jiddle
daughter, Siti Hediati Prabowo, who herself holds a stake
in the project. The fact that Mr. Hashim's company never
paid cash for its stake in the project has raised charges
of impropriety. The Edison-led consortium, PT Paiton Energy
Corp. said Mr. Hashim's company eventually will pay out of
the power plant's future earnings.

Indonesia's state-owned electricity producer, PT Perusahaan
Listrik Negara, defaulted on payments to Paiton Energy last
year and sued Paiton to invalidate the contract on what PLN
said were grounds of "corruption, collusion and nepotism."

Although the suit was dropped, the government's audit
charges that the company's links to the former First Family
influenced the price structure of the contract.  The audit
contends there were "inappropriate payments . . . to
certain people who had the authority to make decisions"
about the development of Paiton 1. The bribery allegation,
the audit said, was based on the audit team's discovery of
what it said were more than $22 million in unspecified
development costs in Paiton Energy's 1994 financial
statement. The report states that the sum represented more
than 50% of the company's total assets.

Paiton Energy said the charge is "erroneous" and ignores a
detailed accounting of development costs provided to the
auditing body in November. The information included the
consortium's payments to international banks, engineering
and law firms and other "reputable" companies, Paiton
Energy said. The consortium is calling for Indonesia's
auditing agency to make public the information "for full
and fair consideration."

The government audit also says the total cost of the Paiton
1 project was "marked up" by as much as $600 million
because of inflated estimates for fuel, construction,
engineering and transportation. As a benchmark, auditors
used the development costs of PLN's own 1,200-megawatt
power plant. The audit estimates that Paiton 1's costs
related to permanent housing, construction facilities and
management were overestimated by 50%.

The audit also charges that Paiton's exclusive coal-
purchase contract with another of Mr. Hashim's companies,
PT Adaro, was inappropriate, The audit cites high estimates
of costs for coal stock, shipment and storage.

Paiton Energy said the costs of the project were agreed
upon after extensive negotiations with the Indonesian
government and that they accurately reflect the project's
value and the "risks assumed by the private investors." The
company added that agencies of the U.S. and Japanese
governments, as well as a number of top international
advisers, had validated the price structure.

The company said the choice of Adaro as the coal supplier
reflected the Indonesian government's demands for domestic,
low-sulfur fuel. The price Mr. Hashim's company charged for
coal reflected accurate "costs related to purchases,
transportation and storage," Paiton Energy said.

Ultimately, the government auditors fucosed on Mr. Suharto,
charging he and a number of key bureaucrats tailored the
Paiton project to its investors. The audit report says on
open bidding was held to allow other groups to vie for the
project, a move that auditors argue might have lowred the
costs. The report also says decrees issued by Mr. Suharto
specifically benefited Paiton Energy.

The audit recommends Indonesia's Attorney General's office
investigate Mr. Suharto and 13 other senior officials
connected with Paiton Energy, including two former
ministers of mines and energy, Ginandjar Kartasasmita and
I.B. Sudjana.  A lawyer for Mr. Suharto said Tuesday that
Paiton Energy's development was consistent with Indonesia's
state policy and that any charges of corruption "must be
proven through judicial review." Attempts to reach both Mr.
Ginandjar and Mr. Sudjana were unsuccessful, though both
men have denied any wrongdoing in past interviews.

President Abdurrahman Wahid's government has vowed to
renegotiate power purchase agreements with Paiton Energy
and 26 other independent power producers who have had their
projects disrupted by Indonesia's economic crisis. Indeed,
the audit recommends that the price Paiton Energy is
charging PLN for its power should be reduced as part of a
new agreement. Paiton Energy said it isn't ruling out a
price reduction.

But it is unclear how the Indonesian government's audit
will affect the contract negotiations. The minister in
charge of the negotiations, Kwik Kian Gie, said that it
remains to be seen whether the auditors followed
international norms. Some people involved in the
negotiations say an independent auditor will probably be
needed to offer another assessment on the costs of the
power project. (The Asian Wall Street Journal  05-Jan-2000)

PT SURYAMAS DUTAMAKMUR: Loses derivative suit
---------------------------------------------
PT Suryamas Dutamakmur lost its legal battle with Bank
Niaga when the Supreme Court upheld the bank's appeal and
annulled an earlier verdict favoring the property
developer, a source at the Supreme Court said.

The source said the verdict, dated Dec. 17, annulled the
Jakarta State Administrative High Court's decision ordering
the bank to compensate Suryamas Dutamakmur in the amount of
Rp 290 billion (US$41.5 million) for a derivative
transaction.  The Supreme Court ruled the transaction
between Bank Niaga and Suryamas Dutamakmur was valid under
existing laws and must be honored by both parties.  The
verdict was reached by a three-member panel of justices led
by Chief Justice Sarwata. The panel also included Paulus
Lotulong and Syafeudin.

Bank Niaga president Ruddy Capelle said he had heard about
the Supreme Court's decision but had not yet received a
copy of the verdict. "The party that is right has finally
won victory," Ruddy said commenting on the verdict.

He also said justice in the Niaga-Suryamas case was finally
reached through the Supreme Court.  Lawyers familiar with
the case said the Supreme Court's verdict would be a
"landmark decision" for other derivative cases. There are
currently eight derivative cases working their way through
the South Jakarta District Court.

The dispute between Niaga and Suryamas began in 1997 when
the property developer applied for a derivative transaction
from Bank Niaga to develop the Rancamaya housing complex in
Bogor, West Java, and the Bumi Manggala housing complex in
Cibubur, East Jakarta.  The derivative transaction was a
cross-currency interest rate agreement in which the two
parties swapped their obligations, one in rupiah and the
other in U.S. dollars.

Under the agreement, Suryamas was to deliver to Bank Niaga
a principal amount of $50 million while Bank Niaga, in
return, was to deliver an amount of rupiah equivalent to
$50 million at the predetermined exchange rate of around Rp
2,500 per dollar. When the rupiah plunged against the
greenback following the economic crisis, Suryamas claimed
Bank Niaga had entrapped it an "exotic" banking transaction
without providing it adequate counsel.

Suryamas filed suit against Bank Niaga with the South
Jakarta District Court in July 1998. The court ruled in
favor of Suryamas and ordered Bank Niaga to compensate the
property developer.  Bank Niaga filed an appeal with the
Jakarta State Administrative High Court. The bank argued
that the derivative transaction was a normal banking
transaction and that Suryamas itself had admitted to the
$50 million obligation to Bank Niaga in its audited
financial statements on Dec. 31, 1997, and Dec. 31, 1998.

However, the high court in April last year sustained the
lower court's decision. Bank Niaga continued its legal
battle by filing an appeal to the Supreme Court.
Then the case took a sudden turn. According to Ruddy,
Suryamas in October asked Bank Niaga to drop its appeal to
the Supreme Court and discuss an out-of-court settlement.
Bank Niaga rejected the offer, expecting to win the legal
battle and also assuming that Suryamas' offer was an
"empty" one, Ruddy said.

"There was not enough explanation about the reasons,
compromises and consequences of the offer," he said.

Another source said the Indonesian Bank Restructuring
Agency (IBRA) intervened in the Suryamas-Niaga case,
attempting to persuade Bank Niaga to accept Suryamas'
offer.  IBRA took over the private commercial bank when
Niaga's shareholders could not save the bank from
insolvency following a run by depositors.

Ruddy however declined to comment when asked about any
intervention by IBRA in the case. "I have no comment on
that," he said, adding only that his bank rejected
Suryamas' offer on a very sound basis.

Ruddy said Bank Niaga had a similar derivative case with
property firm Jakarta International Hotel Development.

"They offered us an out-of-court-settlement with complete
and fair terms and conditions, what may be called a peace
accord," he said.

Ruddy said based on this so-called peace accord, Bank Niaga
agreed to the out-of-court settlement after receiving
ownership of a 1.5-hectare piece of property located in
Jakarta's Central Business District. (The Jakarta Post  06-
Jan-2000)

PT TIRTAMAS COMEXINDO: Hashim criticizes bankruptcy action
----------------------------------------------------------
The president of trading firm PT Tirtamas Comexindo, Hashim
S. Djojohadikusumo, expressed on Wednesday regret over the
Indonesian Bank Restructuring Agency's (IBRA) bankruptcy
suit against the company, calling it a "precipitous
action."  Hashim called on IBRA to withdraw the suit,
noting his company was very much willing to resolve the
matter.

"It is the express intention of PT Tirtamas Comexindo that
a comprehensive settlement be concluded with IBRA and that
IBRA would therefore see fit to withdraw the lawsuit," he
said in a statement.

He said the company had not expected a bankruptcy suit
would be filed since IBRA had stated in its initial
directive that a cooperative settlement with Tirtamas
Comexindo should be completed by the end of January 2000.
Hashim added that Tirtamas had been preparing a mutually
agreeable solution based on IBRA's initial directive.

IBRA filed a bankruptcy suit against Tirtamas with the
Jakarta Commercial Court on Dec. 30, 1999.  The suit was
filed on behalf of closed down Bank Tamara, which had
claims against Tirtamas amounting to Rp 38 billion (US$5.42
million), including unpaid interest payments and penalties.
The loans matured in August last year.

Head of IBRA's legal division Agustus Sani Nugroho earlier
said Tirtamas's debts to Bank Tamara were only a portion of
the firm's bad debts to several banks currently under the
control of IBRA.  Nugroho said Tirtamas had bad debts
totaling $95.7 million and Rp 69.7 billion.  Tirtamas was
uncooperative toward efforts to settle the debts, he said.

Nugroho added that the value of assets recovered from
Tirtamas might be much less than the firm's debts because
IBRA had mostly obtained only personal guarantees from
Hashim.  One guarantee is nine million shares of PT Semen
Cibinong, which belong to Hashim's Tirtamas Group. (The
Jakarta Post  06-Jan-2000)


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K O R E A
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DAEWOO GROUP: Bad-debt agency to buy Daewoo bonds
-------------------------------------------------
Korea Asset Management Corp. will buy Daewoo Group debt
worth a nominal 18.6 trillion won ($16.57 billion) from the
nation's ailing investment trust companies, South Korea's
bad-debt liquidation agency said.

Kamco, the government agency responsible for cleaning up
the country's ailing banks, will buy the unsecured Daewoo
bonds as early as late January to increase the cash
liquidity of trust firms, among the group's main creditors.
Public concern about trust company exposure to Daewoo has
been widespread, and the purchase should help trust
companies meet any rise in redemptions.

Daewoo is struggling to emerge from under its $73 billion
load of debt.  The country's top financial supervisor will
try to revive stalled talks on the restructuring the
group's debt.  Lee Hun Jae, chairman of the Financial
Supervisory Commission, will check progress of debt
rescheduling for 10 of Daewoo's biggest units with local
lenders, starting Thursday with Cho Hung Bank, which is
overseeing Ssangyong Motor Co. plans.

The commission made no comment on how Mr. Lee's discussions
with Korean banks would affect talks with foreign
creditors. (The International Herald Tribune  06-Jan-2000)

DAEWOO GROUP: Public bailout approaching W100 Tril.
---------------------------------------------------
The amount of public funds injected towards the
restructuring of the nation's financial sector amounted to
W78.5 trillion in the two year period between the onset of
the financial crisis at the tail of 1997 and the end of
last year.

It is expected that this amount will snowball to about W100
trillion when the government injects additional public
funds to deal with Daewoo Business Group-issued bonds.
According to a joint statement issued by the Financial
Supervisory Commission (FSC), Korea Deposit Investment
Corp. (KDIC), and Korea Asset Management Corp. (KAMCO) on
Wednesday, the KDIC invested a total of W50.38 trillion,
KAMCO invested W22.77 trillion, and the government an
additional W5.4 trillion towards restructuring efforts.

KDIC, the state-run insurer for bank deposits, explained
that it raised its funds through the issuance of bonds in
an amount of W43.5 trillion, an IBRD-ADB loan of W1.42
trillion, and borrowings of W4.99 trillion from financial
organizations. These funds were completely depleted by the
end of 1999. KDIC said it injected a total of W20.03
trillion to five commercial banks, W3.56 trillion to
purchase non-performing assets of Korea First Bank, W11.16
trillion to buy in bad assets from liquidated banks, W14.85
trillion in payments of deposits.

KAMCO said it raised W21.57 trillion through the issuance
of W20.5 trillion in bonds, W573 billion in investment from
banking organizations, and a W500 billion loan from Korea
Development Bank. KAMCO explained it used W6.067 trillion
to buy non-performing loans from Korea First and Seoul
Bank, and W9.066 trillion to buy non-performing loans at 23
local banks. KAMCO further said that it has been selling
off non-performing loans and reinvesting income from sales
to purchase more non-performing loans.

In addition to KDIC and KAMCO's expenditures, the
government directly raised a total of W5.4 trillion from
various state-run funds. The government also made an in-
kind investment of W1.5 trillion to Korea First and Seoul
Bank and W3 trillion for Korea Life Insurance and Daehan
Investment Trust.

Forthcoming injections of public funds this year are
estimated to be W10 trillion to cover Daewoo-issued
corporate bonds. KAMCO has already taken steps to purchase
a total of W18.6 trillion in Daewoo-issued bonds from
investment trust firms. The government will also be
required to make additional injections to buy in large non-
performing loans from the banking industry as local banks
will be introducing more stringent criteria in evaluating
their assets. One government official said even W20
trillion in public funds would barely be sufficient to
cover Daewoo-issued bonds and non-performing loans at the
banks. (Digital Chosun  05-Jan-2000)

DAEWOO MOTOR CO.: Creditors to sell off by end of June
------------------------------------------------------
Creditors of South Korea's Daewoo Motor Co Ltd said
Wednesday they plan to sell off the country's second
largest automaker within six months, as a delegation of
Ford Motor Co arrived to sound out acquisition terms.

"We need to sell it off at the earliest possible date to
preserve its asset value and minimize the burden on tax
payers," a spokesman of Korea Development Bank (KDB) said.
"The sale of Daewoo Motor will be carried out under
principles of enhancing competition in the market, treating
foreign and domestic bidders equally, putting Daewoo Motor
on a normal track at the earliest possible date and
maximizing its asset value," he said.

The other principles include maintaining transparency
throughout the auction procedure and "taking into account
the overall macroeconomic situation," he told reporters.
Financial authorities and creditors put Daewoo Motor up for
auction only with select bidders instead of holding an open
bidding, in hopes of a speedy sell-off.

The creditors will receive letters of intent from bidders
for Daewoo Motor by the end of this month, accept proposals
by early March and select a bidder which offers the most
favorable terms by mid-March, he said.

"We plan to sign the final contract and receive the payment
by the end of June," he said.

He also confirmed that representatives of Ford Motor Co.
will meet with KDB officials on Thursday to inquire about
terms for acquiring the country's second largest automaker.
The delegation from Ford Motor arrived Wednesday amid
reports that its rival General Motors Corp. (GM) was in the
best position to win the bid for Daewoo Motor.  General
Motor has officially proposed taking over Daewoo Motor,
demanding the government renew its exclusive negotiator
status that expired in November. (China Daily  06-Jan-2000,
The Nation  05-Jan-2000)

HYUNDAI GROUP: Park Sae-yong scapegoat of power struggle?
---------------------------------------------------------
Park Sae-yong, the main man behind Hyundai Business Group's
restructuring office, was transferred to the post of
chairman of Inchon Steel, the steel arm of the chaebol,
only five days after he was appointed chairman of Hyundai
Motor.

The nation's business circles are abuzz with the surprising
appointment, with various rumors suggesting growing discord
among Hyundai's top brass.  Hyundai's official have been
scrambling to explain the sudden change. Park had been
given the coveted job of Hyundai Motor after honorary
chairman's Chung Ju-yung's approval. Chung was reported to
have made the decision after Park had successfully
completed the difficult mission of spearheading the
restructuring of the chaebol.

Chung had intended to send Park to the automobile division
to work under Chung Mong-koo, son of the elder Chung and
chairman of the Hyundai Motor. But with Chung Mong-koo
already working closely with longtime protege, Lee Kye-an
(currently president of Hyundai Motor), a second chairman
was found superfluous.

Hyundai insiders said the younger Chung consulted his
father on the reshuffle and the Hyundai founder agreed.
While Park's new appointment as chair of Inchon Steel may
be considered a demotion, Park is said to have willingly
accepted the appointment.

"Irrespective of his title, Park is a hired manager and
doesn't belong to the `royal family'," said a senior
Hyundai official. (Digital Chosun, Korea Times  05-Jan-
2000)

SAMSUNG MOTOR CO.: Wants acquisition done by end of March
---------------------------------------------------------
Samsung Group confirmed it is in talks with France's
Renault to sell its ailing auto unit, saying it wanted to
wind up the deal by no later than the end of March.

"We hope to wrap up the talks with Renault by the end of
March," said Ha Ju-Ho, an official at Samsung's
restructuring body.

Ha said Renault's stated position that it wishes to acquire
Samsung Motors' assets but not its debts, was acceptable.
"Samsung is to take care of the auto unit's debts as
committed earlier before," Ha said. "So, Renault's position
does not surprise us."

Samsung Group chief Lee Kun-Hee promised to hand over 2.8
trillion won of personal assets to guarantee the unit's
debt of 4.3 trillion won ($3.8 billion) after it was placed
under court receivership in last July.  Samsung Motors,
founded in 1995, produces a single model, the luxury SM5,
at the group's only automobile factory, in the southern
port of Pusan.

But it was hard hit by the nation's economic crisis which
erupted in late 1997. The factory uses a manufacturing
process based on Nissan technology and has an annual
production capacity of 240,000 units.  

Analysts said the renewed foreign interest in South Korea's
robust auto market could drive local manufactures into
seeking similar tie-ups to retain their market share.
(Business Day  06-Jan-2000)


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

TIME ENGINEERING BHD: Rejects offers, to go it alone
----------------------------------------------------
Opting out of three offers for its telecommunications
assets, including one from Singapore Technologies, Time
Engineering Bhd has decided to approach creditors with
fresh proposals just two days before the creditor
protection period ends.

Sources told the Sun newspaper that the steep re-rating of
telecommunications companies and IT stocks worldwide in
recent months has made it possible for Time to renegotiate
with its creditors.

The new proposal, involving conversion of debt into equity
and the listing of its crown jewel, Time Telekom, is
expected to turn the company around faster than the
proposals structured by the Corporate Debt Restructuring
Committee. This way, there will be no capital reduction,
sources said.

Time is confident that the creditors can be persuaded to
convert the 4.5 billion Malaysian ringgit (S$1.95 billion)
debt into equity. This is because if Time were to sell its
telecom assets, both creditors and shareholders are
expected to take a hard knock as the offers could be way
below current valuations.

According to earlier reports, Maxis Communications Bhd had
offered to buy its telecom assets for RM1.2 billion while
Singapore Technologies bid RM1.4 billion. Kejora Harta also
made an undisclosed bid but it includes settling Time's
RM4.5 billion debt.

Analysts agreed that if creditors accept the debt
conversion plan, Time will emerge with a clean slate and
will be able to float off Time Telekom.

Time Telekom has over 5,200km of fibre optics spanning the
nation through its terrestrial cabling and submarine
festoons. This fibre-optic backbone offers superior network
architecture and provides resilience and coverage that
cannot be provided by just wireless networks.

A corporate observer agreed, adding that it only needs
strategic alliances to open up the international gateway
for Time Telekom to be a strong and credible regional hub
for the larger international carriers. (Business Times  06-
Jan-2000)


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

AMALGATED SECURITIES CORP.: SEC rejects FEBTC acquisition  
---------------------------------------------------------
After barring Far East Bank and Trust Co. (FEBTC) from
exercising its rights over two million shares of Amalgated
Securities Corp. (Amsec), the corporate court also recently
declared the bank's acquisition of the said shares "null
and void."

Moreover, the Securities and Exchange Commission (SEC)
directed FEBTC to "strictly observe" the injunction order
and recognize the annulment of its recent foreclosure on
the Amsec shares owned by investment firm Trans-Philippines
Investment Corp. (TPIC). The SEC decision came after TPIC
posted a bond of one million Philippine pesos (US$25,000 at
PhP40.01:US$1) for the issuance of the writ of preliminary
injunction.  FEBTC acquired the Amsec shares as part of its
foreclosure proceedings against the cash-strapped
investment firm.

Earlier, TPIC asked the SEC to stop FEBTC from making any
further dispositions of the Amsec shares (of TPIC) which
were sold at a public auction by notary public Teodoro V.
Angel. (Business World  06-Jan-2000)

NATIONAL STEEL CORP.: PNB may condone its debt
----------------------------------------------
Philippine National Bank, upon the prodding of its board
director and single biggest stockholder Lucio Tan, is
willing to condone its P5.64 billion in loans to National
Steel Corp. to accommodate the entry of a local and foreign
consortium closely linked to the beer and tobacco magnate.

A banking source said the proposed debt condonation would
be made once the Securities and Exchange Commission
appoints a management committee friendly to the cause of
PNB and its co-creditor banks.

NSC's management team--Hottick Investments-Renong Bhd. of
Malaysia--recently foiled PNB's attempt to foreclose the
steel company's assets when it obtained a court order
barring the sale of its assets. Hottick-Renong also filed a
petition for a suspension of debt payment and is awaiting
approval from the SEC for its rehabilitation program.

Hottick-Renong might have gained the upper hand with the
temporary restraining order and its SEC petition, a source
said tables are likely to be turned with an impending
change in leadership at the SEC as part of the sweeping
Cabinet revamp to be unveiled this week.

Since the SEC has the prerogative to appoint members of the
receivership committee, the source said the SEC was likely
to put PNB and the banks in charge of rehabilitating NSC
while Hottick-Renong would be eased out.

With PNB at the helm of the receivership committee, the
source said it was considering to write off its loans to
NSC to ease the financial burden to the incoming investor
group which is most likely to be led by Cathay Pacific
Steel Co. (Capasco) which is owned by Presidential Adviser
on Iron and Steel Johnny Ng and banker Benjamin Chua. PNB
had earlier proposed to convert its debt into equity in
NSC.

Ng and Chua are close business associates of Tan who has
secretly amassed a 35-percent stake in PNB and is in the
best position to buy the government's remaining 30-percent
share in the government.  Tan's other bank, Allied Banking
Corp., has made substantial loans to the Cathay group of
companies before the 1997 currency crisis. Tan's Grand Span
Development Corp., a leading steel fabricator, is also
expected to benefit handsomely from a takeover of NSC.

Tan's son, Michael, is married to a daughter of Ng. Chua is
a member of the board of trustee of University of the East
which is owned by Tan. All three are top officers of the
Federation of Filipino-Chinese Chamber of Commerce and
Industry (FFCCCI)--Tan is president, Ng is first vice
president, and Chua is executive vice president.

Capasco is interested in taking over NSC's billet shop
while NSC's other lines--hot rolled coils, cold rolled
coils, and tinplate lines--would be transferred to an
unidentified Taiwanese group either as technical partners
or financiers or both. With NSC's billet shop under its
fold, Capasco will have a monopoly in the production of
billets used in making rebars and angle bars (for
construction) and wire rods for nails, nuts and bolts,
galvanized iron wire, chicken wire and barbed wire.

PNB has the biggest exposure among NSC's 14 creditors with
P5.64 billion. NSC has outstanding loans of P16.12 billion
of which P13.2 billion is owed to banks, P2.1 billion to
suppliers, and P820 million to the government.

In its proposed rehabilitation plan, Hottick-Renong
requested that banks convert all their debts into non-
voting, preferred shares in NSC. Hottick Renong has
proposed to condone half of its loans to the government's
and 20 percent of its payables to suppliers with the
balance to be paid over five years without interest.

This plan is meant to free up NSC from its debt servicing
burden while it replenishes its capital base (NSC needs at
least $130 million to restart its plant which has been
closed since November) and enhance its operations to
compete with imports. But the Malaysians are fighting an
uphill battle in retaining control of NSC because the banks
are being backed by the government which ironically stands
to lose its 12.5-percent stake in NSC if the firm's assets
are foreclosed.  

Trade and Industry Senior Undersecretary Lilia R. Bautista
confirmed there have been talks about the debt condonation
scheme but decline to give details, saying it is not her
area of expertise as far as government discussions to help
salvage Asia's first integrated steel company is concerned.
However, she said government discussions to help NSC
through adjustments in import duties are still underway.

Earlier, she said the proposal was to impose a moratorium
and minimum prices on the importation of steel products
that compete directly with those of NSC.  Late last year,
the Department of Trade and Industry (DTI) imposed a
dumping bond on billets based on an NSC petition against
steel imports from Russia.  Recently, she said the question
is "Should we lift the bond or not?"

Meantime, there is also an ongoing standoff between
upstream and downstream steel industry players on
sanctioning steel imports.  After the DTI determined a
prima facie evidence that Russian producers were dumping
their goods into the domestic market, it imposed a bond and
forwarded the case to the Tariff Commission for formal
investigation.

Participants of the downstream industry which produces
finished goods using intermediate materials like billets
are questioning the propriety of imposing bond or dumping
duties later on grounds there is no sufficient supply of
billets in the domestic market since NSC has stopped
operations. (Philippine Daily Inquirer, Business World  06-
Jan-2000)

NATIONAL STEEL CORP.: Enrile seeks Senate probe of NSC deal
-----------------------------------------------------------
Sen. Juan Ponce Enrile filed a resolution yesterday calling
for a Senate inquiry on the circumstances that led to the
sale of government equity in the National Steel Corp. (NSC)
and into its eventual shutdown.

Enrile, chairman of the Senate committee on government
corporations and public enterprises, in his Senate
Resolution 650 said that while the privatization of the NSC
was envisioned as a major foreign investment that promised
efficient management and operation of NSC the outcome was
opposite.

"Contrary to expectations, the privatization of the NSC has
resulted to the cessation of its operations and,
consequently, the loss of jobs of thousands of Filipino
employees as well as loss of vast amount of revenue for the
national government and the city of Iligan," Enrile said.

The Cagayan senator said since November 1999 the NSC has
reportedly ceased operations allegedly due to lack of
capital to sustain its operations. It has a pending
petition of suspension of payment with the Securities and
Exchange Commission.  Enrile said the Senate investigation
will try to determine the reasons and causes which led to
the eventual shutdown of NSC and to avoid similar
situations in the future.

Meanwhile, a revamp in the Executive Department could work
in favor of the bankrupt National Steel Corp. (NSC),
banking sources said yesterday. One possibility, they said,
is the condonation of NSC's P5-billion debt with the
Philippine National Bank (PNB). According to banking
sources, the revamp is expected to pave the way for the
entry of a group of foreign and local investors into the
NSC. They said this is the same consortium that was
lobbying for government support ranging from tax reliefs to
the imposition of import restrictions on imported steel
products to protect the company from competition.

According to the source, the revamp will include the
replacement of Perfecto Yasay Jr. as chairman of the
Securities and Exchange Commission (SEC) where NSC just
filed a petition for the suspension of payments on its P15-
billion debt, the appointment of a receivership committee
and the rehabilitation of the company.

The source said this would clear up the way for the NSC to
be put under rehabilitation instead of being foreclosed as
was planned by its creditors, including the PNB.  NSC's
creditors had gone as far as setting the auction date for
the sale of NSC's assets but this was blocked by a court
order and later by the SEC when the company's Malaysian
owners filed for rehabilitation and the appointment of a
receivership committee.

According to the source, beer and tobacco magnate Lucio
Tan, who controls four of the 11 seats at the PNB board, is
willing to condone NSC's debts to allow the consortium to
come into the country's biggest and oldest steel milling
company. "He wants to let the consortium in," the source
said.

The consortium had asked the government for the maximum
protection of import restrictions which the Department of
Trade and Industry (DTI) had been directed to look into in
order to determine how far protection could go without
violating the rules of the World Trade Organization.
Among the things being considered is the possibility of
invoking a provision in one of the WTO agreements allowing
countries to impose import quotas if the affected domestic
industry is considered to be a "threatened industry."
(The Philippine Star  06-Jan-2000)

SHEMBERG MARKETING CORP.: To make debt-for-asset swap
-----------------------------------------------------
Shemberg Marketing Corp., the country's biggest carrageenin
manufacturing company, will sign next week a debt-for-asset
swap agreement with creditor banks led by Equitable PCI
Bank.

Benson Dakay, chief executive officer, said company
officials and representatives of the consortium of
creditors are now finalizing the terms of the omnibus
agreement to restructure Shemberg's estimated 2.4-billion-
peso (US$60 million at PhP40.01:US$1) loan. Mr. Dakay said
the agreement will convert the company's "unsecured" loans
which comprise around 50% of its total outstanding
obligations with various banks. These loans will be
converted into equity in the company's operations in
Mandaue, Lapu-Lapu and Zamboanga.

Signing of the agreement has been tentatively set for
January 11 in Manila. Aside from Equitable PCI Bank, other
shemberg creditors are: Land Bank of the Philippines,
United Coconut Planters Bank, Far East Bank and Trust Co.
and several smaller banks, Mr. Dakay said.  (Business World  
06-Jan-2000)

SOLID BANK CORP.: SEC sets new hearing
--------------------------------------
The Philippine Securities and Exchange Commission set a new
hearing to determine if there are grounds to stop the sale
of a substantial stake in Solidbank Corp. to Metropolitan
Bank & Trust Co., or Metrobank.

The securities watchdog set the new hearing for Monday.
After that hearing, the SEC is expected to decide on the
petition of Canada's Bank of Nova Scotia that sought a
ruling on whether its right of first refusal to about 38%
of Solidbank extends other shares.

Bank of Nova Scotia own 40% of Solidbank, which is part of
the 78% it acquired in 1978 in partnership with the
Madrigal family.  The 1978 shareholders' agreement gave it
right of first refusal for the Madrigal family's stake.
But Metrobank in November offered to buy close to 51% of
Solidbank - a share block that includes those owned by the
Madrigal and Lim families. Scotiabank was given until Dec.
27 to match Metro bank's offer for the share block, or the
sale will proceed. (The Asian Wall Street Journal  05-Jan-
2000)


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

SAHAVIRIYA OA PLC: Realigns 14 subsidiaries into 4 units
--------------------------------------------------------
Sahaviriya OA Plc Wednesday announced a major
restructuring by merging all 14 subsidiaries into the
parent company and establish four key units to focus on its
core business as IT trading firm.

Sahaviriya OA's CEO Jack Min Intanate unveiled the re-
engineering following its agreement with creditors on a
Bt7.8 billion debt restructuring, and the court approval of
its business rehabilitation plan, which will be
accomplished within the first quarter of this year. After
the rehabilitation process has been accomplished, SVOA will
start from a clean slate without debt and accumulated loss.
Its current registered capital of Bt300 million will
ultimately be recapitalised to Bt2 billion with creditors
holding 80 per cent stake through debt to equity
conversion.

Creditors holding 76% of the company's debts have
officially accepted SVOA's plan to resolve payments
totalling seven billion baht, ensuring that corrective
action is taken. The remaining creditors opposed the plan.

Under the plan, SVOA will give up its 45% stake in Acer
Computer, as payment of 250 million baht owed to the
company, a secured creditor.  Ownership of the SVOA
Building on Rama III Road will be transferred to creditors
to clear debts totalling one billion baht.

SVOA will write down its registered capital to 200 million
baht from 300 million to partially write off its losses,
and then raise capital by 1.8 billion baht, to two billion,
with all the new shares taken by creditors who will end up
owning 90% of the company.  SVOA will then write down its
capital again, by 1.5 billion baht, to 500 million, to
write off its remaining losses.

The four strategic business units are IT Distribution
(ITSBU), System Integration (SISBU), IT Project (ITPSBU),
and IT Superstore.  ITSBU will be in the business of
selling PCs and hardware and in the long term develop e-
commerce channels. Sale revenue from this unit is projected
to total Bt2.3 billion, accounting for 60 per cent of total
revenues this year.

SISBU, meanwhile, will focus on installing computer systems
for corporate clients. The unit's sale target for this year
is Bt562 million, accounting for 20 per cent of group
revenues. Jack said that the third unit would focus on
bidding for government projects. The unit is expected to
earn Bt338 million in revenues, accounting for 15 per cent
of total revenues for this year.  

The last unit would operate retail outlets for PCs, IT
products and office automation equipment. It is now
comprised of two outlets, one at Panthip Plaza and the
other at Tawanna. Its sale revenue target for this year is
Bt850 million.  Since the unit is a joint venture with
SVOA's trading partners, who are hardware vendors, only
half of its total revenues would go to SVOA in accordance
with SVOA's stake in it. It would account for 5 per cent of
group's total sales.

Jack said SVOA's sales target for this year was Bt4.05
billion with a Bt69 million profit, compared to last year's
sales of Bt1.7 billion and a loss of Bt700 million.  The
company aims to increase its sales by no less than 15 per
cent from this year until 2008 when its sales target is
expected to hit Bt12.23 billion.

"We will focus not only on marketing computers for several
brands, but also on developing our own brand, SVOA." The
new strategy should ease restrictions placed on SVOA, under
the rehabilitation plan, by the third quarter of this year,
Mr Jack said. "By the third quarter, we are sure to make a
profit and pay a dividend."  (The Nation  05-Jan-2000,
Bangkok Post  06-Jan-2000)

THAI PETROCHEMICAL INDUSTRY: Recapitalization ahead
---------------------------------------------------
Thai Petrochemical Industry PCL said its board of directors
has approved plans to raise $1 billion in new capital as
part of a financial-restructuring plan.

Thai Petro is Thailand's biggest problem debtor, accounting
for $3.2 billion in nonperforming loans and $300 million in
unpaid interest as of December.  The company said in a
filing to the Stock Exchange of Thailand that it will ask
shareholders meeting on Jan 31 to approve in principle a
plan worked out with its creditors for restructuring its
debts, "to be subsequently amended as necessary" for the
benefit of the company.

It said it would also ask shareholders to approve the
inclusion in the restructuring plan of its proposal to
raise $1 billion in new capital.  The company gave no
details of its recapitalization plans.  Thai Petro also
needs the approval of creditors who said last month that
they will support plans to raise new capital only after it
signs a debt-restructuring deal based on a framework agreed
to last February.

Major creditors opposed the company's proposal to include
capital-raising plans as part of the agreement on the
grounds it would require lengthy negotiations and delay the
debt-workout plan.  Under the debt plan approved in
February, creditors were asked to swap accrued interest for
equity in the company and to reschedule repayment of
principle.

The petrochemical company stopped servicing its debt in
August 1997, after the crash of the baht pushed up the cost
of servicing its foreign-currency debt and sent the Thai
economy into a tail-spin.  In a separate filing to the
Stock Exchange of Thailand, Thai Petrochemical's unit, TPI
Polene PCL, said its board of directors has approved the
company's plan for restructuring of $1.3 billion in debt.
TPI Polene, which won majority creditor approval for its
plan last month, will also submit the plan to shareholders
on Jan. 31.  (The Asian Wall Street Journal  06-Jan-2000)

THAI TELEPHONE & TEL.: Clarifies debt restructure for SET
---------------------------------------------------------
For the clear and accurate understanding by investors,
Witit Sujjapong, TT&T executive vice president, reported
the following to the SET to clarify some newspaper reports
regarding TT&T debt restructuring.

TT&T has become a party to the debt restructuring
procedures under the supervision of the Corporate Debt
Restructuring Committee (CDRAC) on July 20 1999. Together
with the creditors and PriceWaterhouseCoopers, their
advisor, the Company and Kensington Group, its advisor,
have followed the procedures all along. On January 12, 2000
the Company will submit the debt restructuring plan for
consideration by the creditors. The creditors can request
modification to the plan within 10 business days but
otherwise will have to vote to accept or reject the plan on
February 16, 2000.

Principle of the restructuring plan is similar to other
cases whereby a business plan is produced to determine the
debt servicing capacity of the Company. Based on the
business plan, the amount of debt to be maintained is
determined and the remaining portion of debts is converted
into equity or quasi-equity. Such principle is accepted by
both the Company and the creditors. However, negotiation on
other details continues. The Company expects final
resolution in a near future.  (Stock Exchange of Thailand  
06-Jan-2000)


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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