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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

           Tuesday, February 22, 2000, Vol. 3, No. 36

                                   Headlines


* C H I N A  &  H O N G  K O N G *

CHINA UNITED HOLDINGS: Reports share placement to HKSE
FIRST PACIFIC CO.: Indonesian IBRA may divest stake
UNION BANK OF HONG KONG: Posts large annual loss


* I N D O N E S I A *

ASTRA INT'L: Singapore consortium has $500m buy-bid
GARUDA INDONESIA: Needs 35 years to clear debts
GARUDA INDONESIA: Technically bankrupt


* J A P A N *

ALPS ELECTRIC CO.: Larger FY99 group net loss expected
NIPPON IRIDIUM CORP.: DDI plans to liquidate stake,for loss
NISSAN DIESEL MOTOR: Declares its truck unit `noncore'
TOMEN CORP.: To revamp board structure in rehab


* K O R E A *

CHO HUNG BANK: Daewoo triggers third losing year
DAEWOO MOTOR: Offers voluntary retirement deal to cut costs
DAEWOO SECURITIES: Sale to be linked with Seoul Inv.Trust
DONG AH LIFE INS.: Kumho Group concludes takeover
HANVIT BANK: Daewoo triggers third losing year
KOREA EXCHANGE BANK: Daewoo triggers third losing year


* M A L A Y S I A *

SIME SECURITIES: Parent concerned about growing debt


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

BW RESOURCES: Philippine probe ripples through market
BW RESOURCES CORP.: Stocks drop to 14-month low on BW row
NATIONAL STEEL CORP.: Creditor banks oppose rehab plan
PACIFIC LENDERS INC.: No investment claims SEC suspension
PHILIPPINE NAT.BANK: BSP to investigate Tan acquisition
VICTORIAS MILLING CORP.: Told to avoid new milling deals


* S I N G A P O R E *

CAM INT'L: Malaysian businessman to help restructure
CLOB INT'L: Effective's offer clears another hurdle
QAF LTD.: Indonesian IBRA may divest stake
SINGAPORE AIRLINES: Calls in auditors after payments scam


* T H A I L A N D *

BANGKOK BANK: Capital,loan-loss provs. unaffected by TPI
BANGKOK METRO. BANK: Prosecution of ex-exec begins
JASMINE INT'L: Debt rehab plan accepted
KRUNG THAI BANK: SET falls across the board
NAKORNTHAI STRIP MILL: Creditors approve debt restructure
SCF FINANCE AND SECURITIES: Put in receivership
SIAM CEMENT: SET falls across the board
SIAM CITY CREDIT FIN.AND SECS.: Put in receivership
SIAM CITY SYNDICATE: Put in receivership
TELECOMASIA: SET falls across the board
THAI PETRO.INDUS.: Objects to change of plan administrator
THAI TEL.& TEL.: SET falls across the board


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

CHINA UNITED HOLDINGS: Reports share placement to HKSE
------------------------------------------------------
China United Holdings Limited (Incorporated in Bermuda with
limited liability through Chung Wilson, Managing Director,
reports that the "Company" has conditionally agreed to
place, through its placing agent, Tai Fook Securities
Company Limited ("Tai Fook"), 2,550,000,000 new ordinary
shares ("Placing Shares") of HK$0.02 each in the share
capital of the Company ("Shares") to independent investors
at a price of HK$0.063 per Share ("Placing").  The Placing
is fully underwritten by Tai Fook.

The Placing Shares represent approximately 20% of the
existing issued share capital of the Company of
12,752,707,704 Shares and approximately 16.66% of the
Company's issued share capital as enlarged by the Placing.
The net proceeds from the Placing of approximately HK$150
million will be used as general working capital and to
reduce its debts.

The Placing is conditional upon the Hong Kong Stock
Exchange granting listing of and permission to deal in the
Placing Shares. The Placing is subject to termination on
the occurrence of an event of force majeure before 10:00
a.m. on the expected completion date including:

(i) the occurrence of any event, development or change
(whether or not local, national or international or forming
part of a series of events, developments or changes
occurring or continuing before, on and/or after the date
hereof) and including an event or change in relation to or
a development of an existing state of affairs of a
political, military, industrial, financial, economic,
fiscal, regulatory or other nature, whether or not sui
generis with any of the foregoing, resulting in a material
adverse change in, or which may be result in a material
adverse change in, political, economic, fiscal, financial,
regulatory or stock market conditions and which in the
reasonable opinion of Tai Fook would materially prejudice
the success of the Placing; or

(ii) the imposition of any moratorium, suspension or
material restriction on trading in securities generally on
the Stock Exchange occurring due to exceptional financial
circumstances or otherwise and which in the reasonable
opinion of Tai Fook, would materially prejudice the success
of the Placing; or

(iii) any change in conditions of local, national or
international securities markets occurs which in the
reasonable opinion of Tai Fook would materially prejudice
the success of the Placing; or

(iv) any new law or regulation or change in existing laws
or regulations or any change in the interpretation or
application thereof by any court or other competent
authority in the Hong Kong or any other jurisdiction
relevant to the Company and its Subsidiaries (together, the
"Group") and if in the reasonable opinion of Tai Fook any
such new law or change would materially and adversely
affect the business or financial prospects of the Group
and/or materially prejudice the success of the Placing; or

(v) a change or development occurs involving a prospective
change of taxation or exchange control (or the
implementation of exchange control) in Hong Kong or
elsewhere and if in the reasonable opinion of Tai Fook, any
such change or development would materially prejudice the
success of the Placing; or

(vi) any litigation or claim of material importance of any
third party being instigated against any member of the
Group, which has or may have a material effect on the
business or financial prospects of the Group and which in
the reasonable opinion of Tai Fook would materially
prejudice the success of the Placing. (Hong Kong Stock
Exchange  18-Feb-2000)

FIRST PACIFIC CO.: Indonesian IBRA may divest stake
---------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) is
considering divesting itself of its stakes in two listed
Salim Group companies before the end of March, said Cacuk
Sudarijanto, the chief of IBRA.

Mr. Cacuk said the agency may sell its 20% stake in
Singapore-based listed food producer QAF Ltd. And its 9%
stake in Hong Kong-listed trade and finance company First
Pacific Co. In order to meet a government target of raising
17 trillion rupiah ($2.3 billion) by March 31.  He said
IBRA would do this if it deems market conditions aren't
favorable enough to sell a major stake in Bank Central
Asia, or BCA, on the market by the same date.

"Selling our stakes in these two companies is an
alternative we are thinking about," Mr. Cacuk said,
although he stressed that IBRA is still seeking to conduct
an initial public offering of Bank Central Asia by the same
date.

Mr. Cacuk also said IBRA is still on track to sell its 45%
stake in car maker PT Astra International by March 25,
despite comments earlier this week by a senior agency
official hinting that IBRA may sell the stake in parts.
IBRA, which manages assets with a face value of around 500
trillion rupiah, is under pressure to sell its Astra stake
and a stake in BCA on the market by the end of March to
raise enough funds to help finance the burden of bank
restructuring in the current budget.

BCA, once also controlled by the sprawling Salim group, was
formerly the country's lagest private bank and is still
viewed as an attractive bank with a relatively healthy
deposit base. Still, some analysts have questioned whether
IBRA will be able to drum up enough interest in an
Indonesian bank to raise enough capital from the sale by
the end of March.

Mr. Cacuk said IBRA is seeking to raise three trillion
rupiah apiece from the Astra and BCA sales, but he stressed
that it wouldn't press ahead with placing shares in BCA on
the mraket if the pricing wasn't right.

He noted that IBRA has alternatives namely its QAF and
First Pacific stakes that it could sell instead to help
fill the 17 trillion-rupiah target, while leaving the BCA
sale until market conditions improve.  "We don't want to be
pressurized by the market," Mr. Cacuk said.

IBRA stresses however, that it still reckons it can drum up
enough investor interest in a BCA IPO to raise the cash.
"There's a lot of interest out there in BCA," said Dasa
Sutantio, IBRA's senior vice president and head of asset
recovery. "We want this to be the landmark IPO of the year.
This is a country play, you're buying the country if you
buy this."

Two of former President Suharto's children held a minority
stake in the bank, which contributed to the massive deposit
run that hit the bank in late May 1998, after unrest shook
much of Indonesia in days surrounding the fall of Suharto.
Many BCA branches around the country were burned and looted
during the riots.

But the bank's customers have largely returned and its
outlook has improved. It has an extensive branch and
automated teller machine network, assets of 84.4 billion
rupiah, total equity of 1.6 trillion rupiah, 767 branches
and 21, 859 employees as of June 30.

IBRA owns the Astra, BCA and other Salim group stakes
through a settlement with former bank owners in return for
liquidity given to their banks during the height of the
currency crisis. (The Asian Wall Street Journal  17-Feb-
2000)

UNION BANK OF HONG KONG: Posts large annual loss
------------------------------------------------
Union Bank of Hong Kong suffered an attributable loss of
$545 million in the year to December after being hit hard
in the first half by provisions for bad loans to mainland
borrowers.  A year earlier, the bank had a profit of $32.95
million.

After a first-half loss of $557 million, the bank reported
a $12 million profit in the second half.  However, managing
director and chief executive Chris Chan Chi-keung said most
of the bank's mainland borrowers postponed debt-
restructuring talks during the second half as they waited
on the outcome of restructuring at Guangdong Enterprises
(Holdings).

Non-performing loans (NPLs) last year lifted the bank's
full-year bad debts to $738.2 million from $656.21 million
in the first half and $328.79 million a year earlier.

To facilitate the recovery of mainland NPLs, Union Bank
plans to set up an asset management company to take over
its $2.49 billion mainland NPL portfolio.  The company will
pay $1.88 billion for the portfolio.

The amount is to be financed by $1.28 billion senior notes
to the bank and another $601 million in a junior notes
issue to be underwritten by the bank's parent, China
Merchants Holdings (Hong Kong).  The arrangement in effect
is a $601 million cash injection.

Union Bank chairman Fu Yuning would not say whether the
arrangement was in preparation for a sale of the bank.
China Merchants intended to remain Union Bank's major
shareholder but it was "open to opportunities for the bank
to enter into strategic partnerships with other financial
institutions that would enhance shareholder value", Mr Fu
said.

According to stock market rumours, China Merchants wanted
to sell its 53 per cent interest in the bank to Industrial
and Commercial Bank of China.  China Merchants, as junior
note holders, would be granted options to subscribe for new
shares in the bank in five years when the notes expired, Mr
Chan said.

The amount of options to be granted would depend on the
amount recovered by the asset management company but
would be no more than 11 per cent of the bank's enlarged
capital.  The exercise price of the options is to be
determined by the average closing price of the bank's
shares within 10 trading days before the announcement of
the plan and another 10 trading days after, plus a 10 per
cent premium.

Nomura International's head of regional banking research
Anthony Lok said: "The structure of the deal will make the
sale of China Merchants' stake in the bank easier."

He indicated a $610 million loss from the sale of the
portfolio to the asset management company would be deducted
from Union Bank's loan-loss reserves, which stood at $884
million at the end of last year.  The $2.49 billion NPL
portfolio is from the bank's $3.7 billion mainland
exposure. It is 70 per cent covered by collateral and
specific provisions.  Mr Chan said he could not rule out
further deterioration of the bank's mainland asset quality.
(South China Morning Post  18-Feb-2000)


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

ASTRA INT'L: Singapore consortium has $500m buy-bid
---------------------------------------------------
Singapore's top state investment arm was reported yesterday
to be spearheading a bid of half a billion US dollars for a
43 percent stake in Indonesia's troubled automotive giant,
Astra International.

The Government of Singapore Investment (GIC) was reported
by the Business Times as leading a local consortium,
including listed vehicle distributor Cycle and Carriage, in
the bid for Astra.  A spokesman for the GIC declined
comment on the report. The cash-rich GIC does not usually
comment on its investments.

The report said the Singapore consortium would put in a bid
of $500 million, with Cycle and Carriage taking up one
fifth of the bid.  The Indonesian government is selling its
45 percent stake in Astra, Indonesia's largest car maker,
and is expected to announce a shortlist of interested
bidders soon.  The share price of Cycle and Carriage rose
16 cents to S$3.92 (US$2.32) in mid-afternoon trade
yesterday following the report.

"This is a very interesting development," JM Sassoon
Securities analyst Lai Yeu Huan told AFX-Asia, an AFP-
affiliated financial news wire.  "If they get it (the Astra
stake), it could potentially replace lost revenues from the
distribution of Mercedes-Benz cars in Singapore and
Malaysia when DaimlerChrysler takes over the wholesale
business," Lai added.

Astra assembles various cars and trucks for Toyota Motor,
PSA Peugeot-Citroen, Bayerische Motoren Werke (BMW),
Daihatsu Motor and Isuzu Motors.  Cycle and Carriage is
seeking new businesses after DaimlerChrysler Corp. recently
announced that it would take over the wholesale side of the
Mercedes-Benz AG's operations, beginning next year.

Other bidders reportedly eyeing the Indonesian government
stake in Astra are Lazard Freres of France, Credit Lyonnais
Securities, Philippine conglomerate JG Summit Holdings and
George Soros' Quantum Fund, the Business Times said.
(Business Day  18-Feb-2000)

GARUDA INDONESIA: Needs 35 years to clear debts
-----------------------------------------------
Flag carrier Garuda Indonesia needs at least 35 years to
fully repay all of its US$1.8 billion debts, the airline's
president said on Thursday.

Speaking at a hearing with members of the House of
Representatives (DPR), Abdulgani said the economic crisis,
which peaked in late 1997 and early 1998, had caused the
airline to suffer a negative equity of $310 million. He
acknowledged that the ongoing restructuring program for the
airline's debts, finances and operations had resulted in
some improvement on the balance sheets and this would
result in a cash flow of $234 million between 1999 and
2004.

But with the cash flow level and the negative position of
its equity, the airline would still need about 35 years to
fully repay its huge debt, he said.

"Under the financial condition, Garuda has legally been
categorized bankrupt, and as a consequence, the government
should take over all of its obligations," he told the House
Commission IV for infrastructure and transportation affairs
in the hearing.

He said the government had agreed to guarantee some of the
airline's debts and the commitment helped the process of
debt negotiations with creditors.  Garuda's outstanding
debts of $1.8 billion includes $610 million in airplane
leasing fees to the European Credit Agency (ECA), a
consortium of financing institutions from Britain, France
and Germany, $601 million in commercial debts and $420
million in airplane leasing fees to U.S. Exim Bank.

Abdulgani said the government agreed last year to take over
Garuda's obligations to pay the $420 million to Exim Bank.
Garuda is currently undertaking active negotiations with
the consortium to reschedule some $610 million it owed to
the agency for leasing six Airbus 330-300s.

"We expect to sign the agreement in April. ECA has
principally agreed to reschedule the debt repayment term
from 12 years to 16 years, but it demands the government
provide a guarantee worth $100 million and to enhance
Garuda's capital," he said.

He said the $100 million guarantee was currently being
prepared by state- owned Bank Mandiri.  He said Garuda
would also propose creditors to reschedule the coupon
payment of its commercial papers to eight years and to
allow the airline to buy back some of the notes at
discounts.

"Under such a program, we hope to be able to reduce the
$1.8 billion outstanding debt to $550 million in 2003," he
added.

Abdulgani said the restructuring program made a positive
result to the company's 1999 balance sheet, which showed a
net profit of Rp 572 billion, the first since 1990.
Garuda suffered a net loss of Rp 2.33 trillion in 1998,
which was worse than the Rp 1.28 trillion net loss it
endured in 1997 and Rp 360 billion in 1996, he said.

"Last year definitely was a spectacular turnaround for
Garuda, both in terms of financial and service operation,"
he said.

He said Garuda had also performed better in terms of load
factor, revenue per seat per kilometer and on-time
performance this year, due to the advice it received from
its two consultants.  Abdulgani said Garuda had increased
its operating revenue to Rp 7.12 trillion last year from Rp
4.51 trillion in 1998.

He also said that the airline, which used to be criticized
for its delayed schedule, had improved its on-time
performance to record an average of 88 percent in 1999,
well above the required standard of 85 percent set by the
Association of Asia Pacific Airlines.

Abdulgani said the improved operational and financial
condition was expected to help spur the company's debt
restructuring efforts.  He said the company's financial
advisor, Deutsche Bank, had estimated that Garuda would
have a net value of about $1.1 billion in 2003.  (The
Jakarta Post  18-Feb-2000)

GARUDA INDONESIA: Technically bankrupt
--------------------------------------
Abdul Gani, the president of the nation's flag carried
Garuda Indonesia, said here the state owned airline company
is technically bankrupt because of swelling debts.

Garuda ran up a total debt of US$ 1.8 billion by December
1998 including US$610 million to European Credit Agency
(ECA) in leasing for six Airbus aircraft, US$ 601 million
in bank loan, commercial papers and business debt and US$
420 million in leasing fees for 11 Boeing-737s to the U.S.
Exim Bank.

Gani told the House Commission IV in a hearing that
creditors asked the shareholder, which is the government,
to support the process of restructuring.  The previous
government had agreed to pay the debt to the U.S. Exim Bank
in 8 years through annnual instalments of US$ 62 million.

"Without the government's support it is impossible to carry
out debt restructuring," Gani said.

He said ECA had agreed to reschedule Garuda's debt by
extending repayment from 12 years to 16 years, and debt in
commercial papers would be paid by instalments in 8 years
with an option for Garuda to buy the debts with discount.
ECA, however, asked for a guarantee of US$ 100 million from
state-owned bank, Bank Mandiri, he added.

He described the fiancial conditiopn of Garuda as difficult
that it would need 35 years to repay its entire debts.
With capital estimated to be minus Rp1.9 trillion (US$ 234
million) in 1998, Garuda could repay only 17% of its total
liabilities, therefore, before being privatized,
restructuring would be needed.

Last year, the company reported Rp571 billion in profit
exceeding the target figure of Rp278 billion. In 1998 it
suffered a loss of Rp2.23 trillion.  (Asia Pulse  18-Feb-
2000)


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

ALPS ELECTRIC CO.: Larger FY99 group net loss expected
------------------------------------------------------
Alps Electric Co. (6770) has revised its earnings forecast
downward for the current fiscal year through March and now
expects a consolidated net loss of some 23 billion yen,
compared with a profit of 9.7 billion yen the previous
year, company officials said Thursday.

The expanded net loss projection is mainly due to an
estimated 49% plunge in group operating profit to 19
billion yen on declining sales volume of GMR heads for hard
disk drives amid price competition. Another factor was the
reduced effect of deferred tax accounting as a result of a
change in the accounting of losses from irrecoverable
Princeton bonds.

Parent-only sales are expected to fall 6% to 320 billion
yen, but group sales are projected only slightly below
previous-year levels at 540 billion yen due to improved
revenues from overseas and distribution subsidiaries.
Group pretax profit is estimated down 52% at 13.5 billion
yen. (Nikkei  17-Feb-2000)

NIPPON IRIDIUM CORP.: DDI plans to liquidate stake,for loss
-----------------------------------------------------------
Japan's DDI Corp. will sever ties with ailing U.S.
satellite phone company Iridium LLC by early next year and
plans to liquidate Nippon Iridium Corp., company president
Yusai Okuyama said.

The DDI group, which operates long distance and mobile
telecommunications services, has a 50.5% stake in Nippon
Iridium, which in turn holds 11.2% in Iridium LLC. "We are
considering liquidating Nippon Iridium without any
additional investment," Mr. Okuyama said.

Mr. Okuyama's confirmation that DDI won't sink any more
money into the venture signals the de facto withdrawal from
the troubled Iridium venture. A cloud has hung over the
Iridium enterprise ever since the U.S. operations filed for
Chapter 11 bankrupcy protection last Auguat. However, until
the announcement, DDI had said it would consider new
investment in the venture if a viable restructuring plan
emerged for the U.S. operations.

At the news conference, Mr. Okuyama admitted that DDI may
have to write off its entire investment in Iridium. In its
midterm financial report last September, DDI made
substantial provisions against potential losses on
investments and loans associated with Iridium.

Shinji Moriyuki, an analyst at Daiwa Institute of Research,
said that additional losses as a result of DDI's
liquidation of its interests in Iridium will amount to
about 15 billion yen ($137.1 million). This estimate
includes potential losses incurred from DDI's investments
in Iridium operations in Australia and Thailand, Mr.
Moriyuki said.

Mr. Moriyuki said DDI's decision to back out of the project
is "very positive". Uncertainty about the issue has weighed
heavily on DDI's stock price in recent months. Mr. Moriyuki
said the company's stock price has been hit more heavily
than the actual impact on DDI's bottom line might warrant
because analysts viewed the investment as symptomatic of a
series of poor investment decisions made by the company.

DDI shares gained 20,000 yen or 1.7% to 1.17 million yen on
the Tokyo Dtock Exchange.

DDI's withdrawal was prompted by the view that the
introduction of global mobilphone services using ordinary
terrestrial wires next year will mean that the Iridium
venture has little future, Mr. Okuyama said. However, DDI
will continue to maintain services to Nippon Iridium's
4,300 subscribers following the company's liquidation.

Local media have reported that Kyocera Corp., which holds a
10% stake in Nippon Iridium and is also DDI's top
shareholder,is planning to withdraw from the venture.
(Asian Wall Street Journal  18-Feb-2000)

NISSAN DIESEL MOTOR: Declares its truck unit `noncore'
------------------------------------------------------
Nissan Motor Co. has concluded that its troubled truck-
making unit is a "noncore" business, a decision that could
foreshadow a move to sell it at a time when Nissan is
unloading businesses it deems unessential.

Thierry Moulonguet, deputy chief financial officer, at
Nissan, stopped short of saying Nissan's intention is to
sell the truck unit, Nissan Diesel Motor Co. "If there is a
proposal (to take over or buy into Nissan Diesel), we will
consider it, and then we will see," he said.

He added, however, that Nissan has determined Nissan Diesel
isn't part of Nissan Motor's core business of making cars
and light trucks. The French executive came to Nissan from
Renault SA after Renault took a controlling 37% stake in
Nissan last year.

The immediate task facing Nissan, Mr. Moulonguet said, is
to restore the truck unit's profitability. To achieve that,
he said, Nissan and Renault, which each down 22.5% of
Nissan Diesel, are now working with the truck maker to come
up with a new business plan by April. They plan to put
together a new management team for the unit, with talent
from outside the Nissan and Renault groups, between now and
June.

But according to an individual familiar with negotiations
over Nissan Diesel's fate, the truck maker "clearly isn't
part of Nissan Motor's long-term plans." The eventual goal
of Nissan and Renault is to sell their stakes in Nissan
Diesel after fixing the company, the individual said. To
free up capital and thus concentrate on turning around
Nissan itself.

Separately, Tsutomu Abe, a managing director at key Nissan
Diesel creditor Industrial Bank of Japan Ltd., said he
understands that Nissan's Renault's longer-term plan for
the truck unit is to sell their stakes. "There is no hope
for creating synergies between cars and heavy trucks," Mr.
Abe said. "Of course, they want to sell their stakes" after
improving the value of the company.

A Nissan Diesel spokesman declined to comment.  Nissan and
Renault are also planning to replace the unit's president
and other key executives by June with managers from outside
the Nissan and Renault group.

"Clearly, the present management at Nissan Diesel didn't
"perform" to shareholders' longuet. The new managers might
be Japanese or foreign, he said. The Nissan Diesel
spokesman declined to comment.

Mr. Loulonguet added that Nissan will be less generous
about pumping money into the truck unit. As part of Nissan
Diesel's turnaround," we are no longer speaking of
financial support," Mr. Moulonguet said. "Nissan has
already done a lot in the past," he said, and is "now
focusing al its available resources to ensure a quick
recovery of our own business."

Nissan has said it will focus on its core business of cars
and light trucks, and has been liquidating its stakes in
businesses deemed outside that core.  Nissan announced
earlier this month a preliminary relief plan for Nissan
Diesel, including a four-year credit line of 200 billion
yen ($1.83 billion) for the unit from IBJ and three other
primary Nissan Diesel creditor banks.

Nissan Diesel reported a net loss of 26.8 billion yen in
the six months ended Sept. 30, 1999, compared with a loss
of nine billion yen a year earlier. (The Asian Wall Street
Journal  18-Feb-2000)

TOMEN CORP.: To revamp board structure in rehab
-----------------------------------------------
The new management team that will lead the restructuring of
Tomen Corp. (8003) will revamp the structure of the
company's board, Tomen's current President Akihiro Tsuji
said Thursday.

In an interview with The Nihon Keizai Shimbun, Tsuji said
that new management will scrap a long-standing practice
under which board members had operational responsibility
for individual business segments.  Responsibility for
business operations will be shifted to executive officers,
leaving the board to focus exclusively on setting the
direction for the company as a whole, Tsuji said.

"Since the board will be focused on company-wide
management, its ranks will be reduced from the current
level of 10 members," he said.

Tomen's move would mark a first in Japan's trading sector,
where executives at the large trading houses typically move
up through the ranks in a single business area and keep
operational responsibilities once they reach the boardroom.
Tsuji and other top officers will resign as part of a
restructuring package under which Tomen is asking lenders
to cancel about 200 billion yen in debt.

Tsuji declined to comment directly on the debt waiver
negotiations. But he did suggest that Tomen will win
approval from lenders for its restructuring blueprint,
saying that secondary lenders have not pressed the company
for steeper personnel cuts or other additional
restructuring moves.  In addition, Tsuji said that Tomen
would earmark 10 billion yen annually to expand its energy,
agrochemicals and other core businesses. (Nikkei  18-Feb-
2000)


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

CHO HUNG BANK: Daewoo triggers third losing year
HANVIT BANK: Daewoo triggers third losing year
KOREA EXCHANGE BANK: Daewoo triggers third losing year
------------------------------------------------------
The nation's three largest commercial banks recorded huge
losses for the third consecutive year last year mainly due
to their heavy exposure to the failed Daewoo Group,
according to performance reports released yesterday.

According to reports filed with the Financial Supervisory
Service, Hanvit Bank, the biggest commercial bank, posted a
net loss of 1.98 trillion won for fiscal year 1999.  Cho
Hung Bank chalked up a net loss of 698 billion won last
year, while Korea Exchange Bank's net loss stood at 657.5
billion won, the reports showed.

In contrast, Housing and Commercial Bank recorded the
highest net profit at 451.3 billion won last year, followed
by Hana Bank with 144.8 billion won, Shinhan Bank with
113.1 billion won, Kookmin Bank with 107.9 billion won and
KorAm Bank with 50.3 billion won. (Korea Herald  19-Feb-
2000)

DAEWOO MOTOR: Offers voluntary retirement deal to cut costs
-----------------------------------------------------------
Daewoo Motor Co. yesterday said it is offering a voluntary
or early retirement program to its 6,500 office employees
as part of efforts to cut costs.

Those quitting the company under the program will receive
up to eight months' salary on top of their legally
guaranteed severance payments, said the troubled automaker.
At the moment it has no plans to conduct a voluntary
retirement program for assembly line workers, said the
company.

The car firm said Friday that the retrenchment will see the
firm operating with a skeleton administrative staff ahead
of the proposed sell-off. The firm said it expects about
1,000 of its total 6,500 administrative staff to apply for
early retirement, which will include a special package of
severance payments. Daewoo said that it does not plan any
cutback staff working on its production lines.

Between 1998 and 1999, the company pruned a total of 1,302
office and assembly line jobs through early retirement
programs.  A Daewoo Motor spokesman said the company isn't
considering layoffs, even though application for voluntary
retirement doesn't meet company expectations.

Earlier last month, the auto unit of the failed Daewoo
Group slashed 43 percent of its executives and conducted an
overhaul focusing on domestic operations. (Korea Herald
19-Feb-2000, Digital ChosunIlbo  18-Feb-2000)

DAEWOO SECURITIES: Sale to be linked with Seoul Inv.Trust
---------------------------------------------------------
The government plans to link the sale of Daewoo Securities
Co with that of Seoul Investment Trust Co, of which Daewoo
Securities is a 24.5 pct shareholder, the Maeil Business
Newspaper quoted a high-ranking Financial Supervisory
Commission official as saying.

The Korea Deposit Insurance Corp, which holds a 14 pct
stake in Daewoo Securities, will not be allowed to manage
the sale, the report added.  The commission would not
confirm the report, adding the ultimate decision has
to be taken by the creditors.

The two institutions ran into difficulty due to the Daewoo
Group's crisis, investing up to 40 pct of their trust funds
in Daewoo-issued bonds and commercial papers.  Seoul
Investment Trust Co incurred a loss of 56.4 bln won in
relation to the Daewoo-related bonds.  At 1:06 pm, Daewoo
Securities shares were down 300 won to 12,000 on volume of
1,587,610.  (AFX News Limited  19-Feb-2000)

DONG AH LIFE INS.: Kumho Group concludes takeover
-------------------------------------------------
Kumho Group has concluded its takeover of Dong Ah Life for
55.5 billion won (US$ 49.2 million), the Financial
Supervisory Commission (FSS) says.

The sale agreement was finalised with four Kumho affiliates
signing it.  The government will turn over the insolvent
life insurer to the buyer through the Korea Depository
Insurance Corp after paying 1.92 trillion won following a
deduction of 1.14 trillion won from the sale price.

Since the government has already put down 1.21 trillion
won, it will pay only 70.75 billion won more, while Kumho
injects 55.5 billion won into the bankrupt life insurer.
Kumho has agreed to take over 60 percent of the life
insurer's employees and the government is responsible for
Dong Ah's loan assets by making up additional losses from
bad loans.

Dong Ah is the third insolvent life insurer to be sold,
following Doowon and Josun. The government will sell
Kookmin, Pacific and Handuk.  (Asia Pulse  18-Feb-2000)


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

SIME SECURITIES: Parent concerned about growing debt
----------------------------------------------------
Sime Darby group chief executive Tan Sri Nik Mohamed Nik
Yaacob told the Sessions Court today he was concerned about
a growing debt in Sime Securities despite a RM320 million
loan having been granted to settle it.

He said from reports given to him in October 1997, he
noticed that the losses "attributed" to Repco Holdings
executive chairman Low Thiam Hock were rising.  The reports
were based on Low's position in Sime Securities.

"Whilst the purpose of the loan was to settle the losses,
the losses were in fact increasing, the loan was being
drawn down (disbursed) and the collateral being moved out,"
he said.

He raised this concern at the Sime Bank board meeting on
Oct 28, 1997.  Questioned by Bank Negara deputy public
prosecutor Kamaruzaman Abdul Jalil, he said the loan was
approved specifically to clear the debt at Sime Securities.

"The problem could have been very serious for Sime
Securities ... because the amount of RM250 million would
exceed the shareholders fund, making Sime Securities
insolvent," he said.

The debt of RM250 million in the account of Refco Capital
Markets Ltd at Sime Securities had arisen after the share
market fell in 1997.  He testified that this was brought to
the board's attention by former Sime Bank chief executive
officer Datuk Ismail Zakaria who proposed extending the
loan to clear the debt. The board agreed.

He said that Ismail was not authorised to release the loan
for any other purpose.  Ismail has been charged with acting
in a manner exceeding his authority by giving out a RM175
million loan to Everise Capital Sdn Bhd, a Repco
subsidiary, to buy shares.

The total amount involved transacting RM59 million on Sept
20, 1997; RM50 million on Oct 1, 1997; RM40 million on Oct
7, 1997; and RM26 million on Oct 21, 1997.

Ismail, 57, allegedly committed the offences at Sime Bank's
premises.  Asked by Kamaruzaman, Nik Mohamed said he did
not know about the loan being used to buy shares until he
read in the newspapers about Ismail being charged.

However, while under cross-examination by Ismail's lawyer
V. Sithambaram, he said he had inferred from the reports on
Low's position that the loan was being used to buy shares.
The reports showed the loan disbursal increasing from RM160
million to RM226 million, along with a rise in the number
of share counters being pledged as collateral.

He said he did not know if the loan was used to buy shares
to place as collateral to reduce the shortfall, but agreed
that the shortfall had dropped to RM44 million by Oct 24,
1997, compared to RM250 million on Sept 4. Asked by another
defence counsel K. Kumaraendran, he said the bank's
circular resolution, which he signed, had stated the loan
was for a "working capital".

"My understanding is that whether it (the loan) was for
working capital or not, it was to settle the loss," he
said.

He agreed that he could have rejected the circular
resolution if it did not comply with the board's decision.
Hearing before judge Khadijah Idris continues.  (Asia Pulse
18-Feb-2000)


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

BW RESOURCES: Philippine probe ripples through market
-----------------------------------------------------
The stock-exchange report accusing a friend of President
Joseph Estrada of stock manipulation and insider trading
sent the stock market reeling and created new worries about
the administration.

The exchange's main index dropped 43.11 points, or 2.2% to
1894.95. That is its lowest level in two months.

For Mr. Estrada, the 69-page report released Tuesday
underlines the allegations of cronyism that have plagued
his administration over its 19 months in office. The
investigation by the Philippines Stock Exchange examined
last year's dramatic rise and fall of gambling stock BW
Resouces Corp.

"It reinforces a perception that's already there, and
that's business players close to the president can end the
rules," said Alex Magn, professor of political science at
the University of the Philippines.

Mr. Estrada tried to rebrand his administration as a clean,
technocratic team last month, but that effort is now being
overshadowed. "There's no momentum," Mr. Magno said,
adding, "The government has lost steam, and there's no
follow-through. It's like they're caught in a vicious
circle

"The immediate fallout for Estrada is limited," said
Professor Solita Monsod, former secretary of socioeconomic
planning under President Corazon Aquino and a professor of
economics at University of the Philippines. It won't affect
Congress's effort to push through reform bills for the
banking, securities and power sectors. Future lending from
the International Monetary Fund, as well as from other
donors, is contingent on these reforms being passed.
"Congress has already decided it wants to push these bills
through," she said.

The trouble of President Estrada comes when he wants to
pass new legislation. "He might not be able top ush what he
wants to push, especially if it seems that his cronies will
benefit," Ms. Monsod said.

The confidential stock-exchange report, released by Senator
Raul Roco, concluded that there was enough evidence to
charge Dante Tan, a major shareholder of BW and a friend of
Mr Estrada, with insider trading and stock manipulation.
The report was forwarded to the Securities and Exchange
Commission and the Senate for their consideration, but SEC
Chairman Perfecto Yasay Jr. said the findings aren't
conclusive and that the watchdog still must validate the
report. Mr. Tan says he hasn't done anything wrong.

Mr. Estrada is directly linked to the case because last
month, Mr. Yasay told a Senate hearing that Mr. Estrada had
called him several times to express his view that Mr. Tan
was just a victim. Although Mr. Estrada denies exerting any
pressure, he said he did telephone Mr. Yasay.

In a radio interview Wednesday, Mr. Estrada moved to
distance himself from the case. "Regardless of who is
involved, whether my relative or friend, they should face
the music. If they're found guilty, they should be meted
with the proper punishment," Mr. Estrada said.

The BW case is one of several scandals that has hit Mr.
Estrada's government recently. (The Asian Wall Street
Journal  17-Feb-2000)

BW RESOURCES CORP.: Stocks drop to 14-month low on BW row
---------------------------------------------------------
Stocks tumbled at the close yesterday as foreign investors
continued to bail out of blue chips as a result of the BW
Resource Corp. scandal.

The 33-share composite index broke the 1,880 major support
level in early trade and later closed at a 14-month low at
1,869.71 points, down 25.24 points or 1.33 percent. It was
the lowest closing level since Dec. 16, 1998.  The main
index had declined 8.7 percent in the past six days, making
it its biggest loss since the six-day period ended July 27.

"The development on BW is keeping everybody nervous. It
cast a long shadow in the (local) market," said Lawrence de
Leon, analyst at Magnum International Securities, Inc.

"The BW (investigation) is affecting the image of the
Philippines in general," said Cristine Mercado, an analyst
at Guoco Securities (Philippines) Inc. "The political risk
is building up in the country."

A report from a Philippine Stock Exchange (PSE) unit said
businessman Dante Tan, majority owner of the gaming firm,
used a "master plan of manipulation," to propel BW shares
to dizzying heights last year.

President Estrada, who says Tan is his friend, vowed on
Wednesday not to bail out Tan.  Tan said on Tuesday he was
not furnished a copy of the report and was amazed by its
findings.

"I have always been proud of my reputation and integrity
and the prejudice and damage I have suffered as a result of
the PSE report cannot be quantified," he said in a
statement.

The exchange also accused eight brokers and company
president Eduardo Lim, who has taken an indefinite leave of
absence, of stock manipulation.  Securities and Exchange
Commission Chair Perfecto Yasay said he would decide
whether to bring charges against those implicated in the
report before March 25, when he is scheduled to resign as
SEC chief.

BW Resources Corp. fell P1.95, or 39 percent, to P3,
bringing its loss in the past four days to 60 percent,
after the exchange said in its report that it found
evidence of stock manipulation in the company's share
price. The stock, trading as high as P107 in Oct. 11, is at
lowest level since April 22.

Stocks also fell on concern higher oil prices could slow
economic growth and boost inflation. A barrel of crude oil
now fetches around $30, its highest price in nine years and
more than double the price from a year ago.  Turnover
yesterday increased to about P2.1 billion from the previous
P1.7 billion, according to preliminary data.

Losers outpaced gainers 53 to 49 while the prices of 53
issues were unchanged, brokers said.  Besides BW, other
losers were retail firm SM Prime Holdings, Ayala Land Inc.
and Philippine National Bank.  Philweb.com bucked the
downward trend as it rose 26.09 percent to 29 centavos
because of bright prospects in the Internet business.

Island Mining also soared 48.72 percent at 14.5 centavos on
talk that the firm would be transformed into an Internet
company.  Traders said they expected the index to find its
next support at the 1,850 level in the next few days.
(Philippine Daily Inquirer  18-Feb-2000)

NATIONAL STEEL CORP.: Creditor banks oppose rehab plan
------------------------------------------------------
Creditor banks of debt-laden National Steel Corp. (NSC)
want the corporate court to junk the recently submitted
rehab plan. At the same time, they accused the country's
largest steel manufacturer of forum shopping for filing a
separate petition with the legal courts.

In separate motions, AsianBank Corp., Philippine National
Bank (PNB), Allied Bank, Land Bank of the Philippines and
Westmont Bank asked the Securities and Exchange Commission
(SEC) to deny NSC's bid for rehabilitation and impose
necessary sanctions for forum shopping.

At least two similar actions have been filed by NSC
intending to suspend foreclosure proceedings by creditor
banks. One is pending with the regional trial court (RTC)
of Iligan City and the other with the SEC.

"In a willful and deliberate attempt to forum shop, NSC's
Ibrahim Bin Bidin certified under oath that there is no
other pending action when he filed the (SEC) petition. The
pendency of the case with the RTC was not disclosed in the
certification submitted before the (SEC)," AsianBank said
in its motion.

AsianBank pointed out that "NSC is asking RTC and the SEC
to prevent the foreclosure of its properties covered by the
Mortgage Trust Indenture, hoping that one of them would
issue an order suspending the adverse proceeding against
it."

On their part, PNB, Allied, LandBank and Westmont said
NSC's forum shopping may have been done to "ensure NSC of a
favorable outcome for the single purpose of trying to
delay, if not altogether, avoid its obligations" to the
creditor banks.

Meanwhile, AsianBank also said NSC's proposed rehab plan is
"not feasible as the same are premised on unacceptable
forecast assumptions."

Among the provisions in the plan is that the outstanding
bank loans of 13.20 billion Philippine pesos (US$325.4
million at PhP40.56:US$1) will be converted into non-
participating, non-voting and non-cumulative preferred
shares.

"This condition is not only unacceptable, unreasonable and
onerous but also a violation of charter of many creditor
banks. AsianBank manifests its vehement opposition to this
condition," AsianBank said.

AsianBank also doubted whether the government, as provided
for in the NSC rehabilitation, would be in a position to
grant the condonation of the company's payables and the
waiver of interest for five years.  For its part, NSC has
agreed to submit a more detailed and revised rehabilitation
plan within the next 20 days.

NSC lawyer Alfredo C. Lim said the steelmaker's
rehabilitation plan has already been prepared but "due to
pending talks with future investors, the rehab plan will
have to undergo drastic changes it will be futile to submit
the plan now."

Meanwhile, Iligan City mayor Franklin Quijano yesterday
filed a motion (for intervention) that sought the approval
of NSC's rehabilitation plan.  In an interview with
reporters after the SEC hearing last Wednesday, Mr. Quijano
said Iligan's economy is highly dependent on NSC, and that
the closure of the firm has slowed down the city's economy,
affecting the lives of his constituents. The City of Iligan
is pushing for the rehabilitation of NSC.

"The economy of Iligan City relies on business taxes. With
the closure of NSC, the city stands to lose over PhP200
million ($4.9 million) or 30% of the city's annual
revenues," he said.

Moreover, Mr. Quijano pointed out the 2,000 people who were
left without any work by the NSC closure and the 6,000-odd
people in the "downstream industries" who may be affected
because of NSC's financial woes.

"The workers, who have been with NSC throughout its
problems, were not included in the firm's petition they
should at least be represented in the firm's interim
rehabilitation receiver," Mr. Quijano said.

The commission is set to appoint an interim rehabilitation
receiver for NSC. SEC chairman Perfecto R. Yasay, Jr. said,
however, "the NSC case is very critical, we would want to
make sure that only the most qualified people are appointed
to the committee."

The SEC has yet to appoint the members of the receivership
committee. (Business World  18-Feb-2000)

PACIFIC LENDERS INC.: No investment claims SEC suspension
---------------------------------------------------------
The Securities and Exchange Commission (SEC) did not
suspend the claims of investments against Pacific Lenders
Inc.

SEC said the statement of lawyer Omar Redula is only an
interpretation of its order in favor of his client Luis
Diores Jr.  The order dated Feb. 7, 2000 said: "In view of
the creation of the management committee-receiver, all
actions for recovery of investments against Pacific are
hereby suspended."

Lawyer Merle Cunanan, SEC Cebu chief, said the order refers
to all actions pending before the commission.  It has no
effect on the criminal cases against Diores, nor is it
binding upon the courts.  A clarificatory order will be
issued soon.

Redula had told reporters the order is binding upon the
court and the courts "should refrain from hearing all the
cases filed by investors. All cases in court for recovery
of investments and interests are deemed suspended."

Diores, vice president of Pacific, is facing several estafa
and bouncing checks cases before the courts. He is detained
at the city jail.  Investors accused Diores of embezzling
some P500 million to P800 million. But Diores has denied
the charges, saying it was Soo Nam Michael, president of
Pacific, who ripped them off. The Korean national has
reportedly left the country shortly after the collapse of
the lending company in 1998.

The SEC has said Pacific was not authorized to engage in
the investments business. Its order also denied the motion
for the issuance of a writ of preliminary attachment filed
by complainant Sitich Graft von Berlepsch.SEC, in the order
penned by hearing officers Marive Peque and Ma. Theresa
Agan, explained that granting the motion means giving
preference to the complainant over the other investors.

"It is the paramount objective of this commission to
protect the interest of all investors and put them on equal
footing. This is precisely the reason for the creation of a
fund management committee," the order said.

In the same order, the SEC also expanded the order of the
management committee-receiver, comprised of public
accountant Tita Caluya, chairman, and lawyer Audie Arnado
and Gemita Aleja as members. The committee is tasked to:
take custody of and control over all assets and
liabilities, earnings and operations of Pacific; adopt
measures for the proper control of the company's funds;
determine the best way to recover corporate funds and
assets fraudulently misapplied; and study, review, and
evaluate the feasibility of recovery of investments. (Sun
Star Cebu  19-Feb-2000)

PHILIPPINE NAT.BANK: BSP to investigate Tan acquisition
-------------------------------------------------------
Bangko Sentral ng Pilipinas will investigate Lucio Tan's
acquisition of some 50-percent equity in Philippine
National Bank to ensure that the taipan's entry into PNB
was above board.

BSP Governor Rafael Buenaventura said the central bank has
recently received the petition of the World Bank and would
begin the probe of Tan's acquisition of his PNB shares
immediately.

"We will investigate how Tan got his shares. We have just
been given the details of PNB's ownership and we will see
from there if violations have been committed," said
Buenaventura.

The bank has asked the BSP to produce a certification that
no banking laws were violated by the entry of the taipan
into PNB.  The World Bank wants BSP to submit the
certification before it releases the second tranche of a
$600-million loan it would co-finance with Japan's Bank of
International Cooperation.

Tan now owns close to 50 percent of the bank and is
preparing to buy the government's remaining 30-percent
stake in PNB to beef up its control to 80 percent.
Aside from the certification, the bank had required the
submission of the Price Waterhouse Coopers' audit and the
action plan for the bank's privatization prepared by the
bank's privatization.

The bank is concerned that Tan's increased stake in PNB
could have violated central bank's Dosri provision.
The Dosri provision says that any directors, officer,
shareholders and related interest could not obtain a loan
15 percent higher than the bank's unimpaired capital.

Buenaventura said the BSP was confident that no new loans
were given to Tan-controlled firm Philippine Airlines that
would make the taipan violate the Dosri provision.  The
World Bank had earlier asked the finance department to
issue a formal assurance that Tan's acquisition of PNB
shares to make him a 48-percent owner of the bank did not
violate any law.

At the same time, the World Bank had reiterated its stand
that the government's remaining 30 percent share in PNB
valued at about P6.2 billion should be disposed in a
transparent and open manner. The plan is to bid out the
said stake sometime in April or June.

"We are sure that the PNB bidding would push through during
the time-frame we have committed," said Buenaventura.

From 35 percent, Tan was able to strengthen his hold of PNB
to about 48 percent after buying shares from the stock
market. PNB's privatization is being closely watched by the
market. (Philippine Daily Inquirer  18-Feb-2000)

VICTORIAS MILLING CORP.: Told to avoid new milling deals
--------------------------------------------------------
The management committee of the Victorias Milling Corp. has
directed the sugar firm's shareholders to defer
negotiations for new milling contracts until the bidding
for the majority stake of the company is completed.

"A lot of milling contracts are expiring this year. So as
not to put any form of restraint on the incoming
shareholders, the mancom agreed that we should not allow
new contracts to be finalized until after the public
bidding," a source in the committee said.

The majority stake of VMC, amounting to 53.35 percent, is
up for public bidding on March 20. Two groups which had
been short-listed by the bidding committee--Cargill Inc.,
the local subsidiary of a major agricultural company and
RCBC Capital of the Yuchengcos in joint partnership with
Central Azucarera de Don Pedro--have started their due
diligence audit on the company.

The source said the mancom, chaired by outgoing Equitable
PCI EVP Isidro Alcantara had expressed concern that the
negotiations being pursued by existing shareholders led by
VMC president Manuel Ma¤alac might compromise the interests
of those who would take over majority control of the sugar
firm.

"We think it's best to wait until the new shareholders are
in place before getting new milling contracts," the source
said.

VMC had filed a petition for the suspension of debt
payments with the Securities and Exchange Commission in
early 1997, saying its operations were impaired by the
country's over-importation of cheap sugar. This was
henceforth aggravated by the difficult economic environment
brought about by the currency crisis.

The mancom has ordered the bidding of 53.35 percent of VMC
after the failure of existing shareholders to raise the
P567 million needed to exercise their preemptive rights.
Due diligence on VMC will be conducted until March 3.

After the bidding, the main components of the original
rehab plan will still be pursued by the mancom. Among
others, the plan calls for the reduction of the par value
of existing share to P1 per share but at the same time, the
issuance of 2.9 shares for every existing share to be able
to raise the P567 million additional capital needed by VMC.

VMC is saddled with more than P5 billion in debts, of which
around P1.5 billion will be converted into equity by the
banks. Its issuance of new shares will bring its total
number of shares to 1.06 million, resulting in the original
sharing of percentage control at 46.5 percent to the old
shareholders and 53.5 percent to the new shareholders.

The creditor-banks have agreed to convert a portion of
VMC's debts into equity and restructure the remaining
liabilities for a period of 15 years provided a viable
rehabilitation plan could be implemented. (Philippine Daily
Inquirer  19-Feb-2000)


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

CAM INT'L: Malaysian businessman to help restructure
----------------------------------------------------
CAM International Holdings says it has entered into an
agreement with a Malaysian businessman, Ong Puay Koon, to
restructure the group.

A company statement said Ong had incorporated a Singapore
company, Bintai Engineering Systems & Technologies, for the
exercise and confirmed that he had the financial resources.
The restructuring of the CAM group would include the
restructuring of certain existing debts through acquisition
of shares, injection of assets or any other methods
mutually acceptable.

Ong and CAM group had also successfully negotiated with the
lenders, including Pengurusan Danaharta Nasional Bhd, the
Malaysian agency to take the non-performing loans of the
Malaysian banking sector, to agree to restructure the debts
of the computer components contract manufacturer in line
with the terms of the restructuring, the statement said.

Both parties have six months to complete the transaction
according to Ong's proposal and to get approval from
relevant authorities in Singapore and Malaysia.  CAM
International, suspended from the stock exchange in 1997,
is currently headed by executive chairman Dr Tan Tiong
Hong, also from Malaysia.  (Asia Pulse  17-Feb-2000)

CLOB INT'L: Effective's offer clears another hurdle
---------------------------------------------------
The Singapore Exchange is said to have finally obtained
written confirmation from the Kuala Lumpur Stock Exchange
(KLSE) and the Malaysian Central Depository (MCD) that the
offer to resolve the 18-month-old Clob impasse by Akbar
Khan's Effective Capital complies with their rules and
regulations.

Sources said Effective Capital had faxed over copies of the
letters from the two Malaysian securities bodies to the
Singapore Exchange (SGX) yesterday.  Written assurances
from the KLSE and the MCD have been among the main
stumbling blocks to Effective Capital's offer, which has
been with the SGX for more than a month.

The letters are said to have confirmed the KLSE's position
on the Effective Capital offer as being the only valid one
on the table so far. The KLSE has not given its approval to
about half a dozen other proposals.

The KLSE and the MCD are also said to have reiterated in
their letters to Effective Capital that its Irrevocable
Request & Authority Proposal (IRA) has been found to comply
with the relevant rules and procedures, and therefore its
proposal can be implemented if accepted by Clob investors.

The two Malaysian bodies are said to have now given written
assurances that the shares now residing in the Singapore
Central Depository Pte Ltd's account with the MCD would be
migrated to individual accounts of Clob investors.  At a
meeting between the two exchanges at the end of last month,
the KLSE expressed its concern over the delay in the
distribution of the Effective Capital offer to Clob's
172,000 investors.

The KLSE had in a four-page statement told Clob investors
to focus on the Effective Capital offer and called on them
to follow up with the Singapore authorities "to ensure that
they are not deprived of any information or documents that
would assist them to make a decision to accept the private
sector offer".

The KLSE highlighted that Clob investors who did not wish
to accept the Effective Capital offer "would have fully
recognised that, upon the expiry of CDP's authorised
nominee status on June 30, 2000, any securities not held in
the account of a beneficial owner or an authorised nominee
shall be transferred to the Minister of Finance".

While Clob investors would remain the legal owners of such
shares, they would have to approach the Finance Minister
for compensation.  Effective Capital's two-step proposal
calls for the release of the shares over 18 months once
they have been moved into the investors' individual
accounts over a four-month period. However, investors will
not be getting their shares in tradeable lots at once but
in odd lots every week.

For this service, Effective Capital is asking for a 2 per
cent fee based on the valuation of the shares as at the
closing of the KLSE on Dec 22 last year, which on full
acceptance will allow it to rake in more than 300 million
Malaysian ringgit (S$135 million).

Both Effective Capital's chief executive Mohamed Moiz and
his uncle, Akbar Khan, were not available for comment. The
SGX was not able to confirm whether it had received the
letters last night.

The Securities Investors Association of Singapore (SIAS)
had indicated last month that it preferred a proposal by
Bintang Melawar. The latter, which is headed by a prince
from Negri Sembilan, offers a shorter release period for
the shares and a lower commission of one per cent.

In Kuala Lumpur yesterday, Malaysian Prime Minister
Mahathir Mohamed told reporters that he would meet Prime
Minister Goh Chok Tong to discuss the issue of the frozen
Malaysian Clob shares "at some stage", but did not indicate
a time frame.  He said he had not met Mr Goh to discuss the
issue while they were both at the Asean-United Nations
summit in Bangkok recently.

Asked if a meeting would be arranged by the end of this
month, Dr Mahathir replied: "We don't know yet."

Trading in Clob shares in Singapore ceased on Sept 15,
1998, following the imposition of capital controls by
Malaysia. As a result, nearly 11.5 billion shares in 112
Malaysian public-listed companies, now worth over RM18
billion, have been frozen since. (Singapore Business Times
18-Feb-2000)

QAF LTD.: Indonesian IBRA may divest stake
------------------------------------------
The Indonesian Bank Restructuring Agency is considering
divesting itself of its stakes in two listed Salim Group
companies before the end of March, said Cacuk Sudarijanto,
the chief of IBRA.

Mr. Cacuk said the agency may sell its 20% stake in
Singapore-based listed food producer QAF Ltd. And its 9%
stake in Hong Kong-listed trade and finance company First
Pacific Co. In order to meet a government target of raising
17 trillion rupiah ($2.3 billion) by March 31.  He said
IBRA would do this if it deems market conditions aren't
favorable enough to sell a major stake in Bank Central
Asia, or BCA, on the market by the same date.

"Selling our stakes in these two companies is an
alternative we are thinking about," Mr. Cacuk said,
although he stressed that IBRA is still seeking to conduct
an initial public offering of Bank Central Asia by the same
date.

Mr. Cacuk also said IBRA is still on track to sell its 45%
stake in car maker PT Astra International by March 25,
despite comments earlier this week by a senior agency
official hinting that IBRA may sell the stake in parts.
IBRA, which manages assets with a face value of around 500
trillion rupiah, is under pressure to sell its Astra stake
and a stake in BCA on the market by the end of March to
raise enough funds to help finance the burden of bank
restructuring in the current budget.

BCA, once also controlled by the sprawling Salim group, was
formerly the country's lagest private bank and is still
viewed as an attractive bank with a relatively healthy
deposit base. Still, some analysts have questioned whether
IBRA will be able to drum up enough interest in an
Indonesian bank to raise enough capital from the sale by
the end of March.

Mr. Cacuk said IBRA is seeking to raise three trillion
rupiah apiece from the Astra and BCA sales, but he stressed
that it wouldn't press ahead with placing shares in BCA on
the mraket if the pricing wasn't right.  He noted that IBRA
has alternatives namely its QAF and First Pacific stakes
that it could sell instead to help fill the 17 trillion-
rupiah target, while leaving the BCA sale until market
conditions improve.

"We don't want to be pressurized by the market," Mr. Cacuk
said.

IBRA stresses however, that it still reckons it can drum up
enough investor interest in a BCA IPO to raise the cash.
"There's a lot of interest out there in BCA," said Dasa
Sutantio, IBRA's senior vice president and head of asset
recovery. "We want this to be the landmark IPO of the year.
This is a country play, you're buying the country if you
buy this."

Two of former President Suharto's children held a minority
stake in the bank, which contributed to the massive deposit
run that hit the bank in late May 1998, after unrest shook
much of Indonesia in days surrounding the fall of Suharto.
Many BCA branches around the country were burned and looted
during the riots.

But the bank's customers have largely returned and its
outlook has improved. It has an extensive branch and
automated teller machine network, assets of 84.4 billion
rupiah, total equity of 1.6 trillion rupiah, 767 branches
and 21, 859 employees as of June 30.

IBRA owns the Astra, BCA and other Salim group stakes
through a settlement with former bank owners in return for
liquidity given to their banks during the height of the
currency crisis. (The Asian Wall Street Journal  17-Feb-
2000)

SINGAPORE AIRLINES: Calls in auditors after payments scam
---------------------------------------------------------
Singapore Airlines (SIA) has called in outside auditors
after its former supervisor faced mounting charges
yesterday of siphoning off more than $20 million over a 13-
year period.

"We will subject our systems and procedures to the most
thorough scrutiny of independent experts," SIA spokesman
Rick Clements said in a statement. The investigation is to
be carried out by global auditing firm Arthur Andersen.

The statement came nearly a month after a former employee
of the airline's cabin crew division was first charged with
misappropriating large sums of money from SIA, the most
profitable airline in Asia.

Teo Cheng Kiat, 47, a long-time employee who was supervisor
of the division before he was sacked, now faces 25 charges
of embezzling nearly S$35 million (US$20.6 million) in
hundreds of transactions between February 1987 and January
2000.  Teo, who had been remanded at the Criminal
Investigation Department to facilitate investigations, was
allowed bail of $20 million by a court yesterday, a
spokeswoman for the Commercial Affairs Department said.

She said Teo was also slapped with nine additional charges
yesterday involving nearly $1.4 million.  It could not be
confirmed whether Teo posted the massive bail.

Teo allegedly banked separate sums of the embezzled money
into his personal account, a joint account held by him and
his wife and another joint account held by his wife and her
sister.  According to the Commercial Affairs Department, if
convicted he could be jailed for up to seven years and
fined for each of the 25 charges.

Legal sources said Teo's case could turn out to be the
biggest case of criminal breach of trust brought before the
Singapore courts.  The action by SIA's audit committee to
commission Arthur Anderson to conduct a "full and
independent" review of its crew and staff payment
procedures underlined the seriousness of the case, the
sources said. (Business Day  18-Feb-2000)


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

BANGKOK BANK: Capital,loan-loss provs. unaffected by TPI
--------------------------------------------------------
Bangkok Bank (BBL), Thailand's largest bank and one of the
five major creditors of debt-ridden Thai Petrochemical
Industry (TPI), does not have to increase its capital this
year or set additional loan-loss provisions in case TPI's
debts restructuring fails, BBL Chairman Chatri Sophonpanich
said.

According to the BBL Chief, the bank has already set aside
80 percent loan-loss provision for its non-performing loans
(NPLs) which also cover debts of more than 10 billion baht,
or less than 10 percent of TPI's total debt of US$3.4
billion.

Chatri said BBL's reserves now stand at 68 billion baht,
with the BIS ratio of 8.9 percent above the level required
by the Bank of Thailand.  The BBL Chief elaborated that
there is no pressure for the bank at this moment to
increase equity. The increase would be initiated only for
banking business expansion,and there is still plenty of
time until the end of the year.

He said BBL's responsible departments have been assigned to
map out plans for increasing the bank's capital, taking
into consideration the bank's share price movement and the
timing for the increase.  He commented about the ways PTI's
Chief Executive Officer Prachai Leophairatana was trying to
negotiate with the creditors, saying: "It was
understandable that the TPI Chief would be resorting to
every means in order to save the business he had initiated
and built with his own hands."

Meanwhile BBL Vice President Deja Tulanand told reporters
in a separate interview that TPI's debt restructuring plan,
now being settled through the Central Court of Bankruptcy,
would not affect BBL's status.  Sources close to Thai
creditors of TPI told Business Day that they would like to
have the TPI debt case ended through a compromise and none
of the Thai creditors do not want to have case ended by
bankruptcy. (Business Day  17-Feb-2000)

BANGKOK METRO. BANK: Prosecution of ex-exec begins
--------------------------------------------------
The state attorney yesterday launched prosecution
proceedings against Panya Tantiyawarong, former managing
director of Bangkok Metropolitan Bank, in the Criminal
Court, on charges of breaching Bank of Thailand orders.

However, the state attorney will have to drop the charge of
breaching central bank orders against Vichien Tejapaibul,
the former president of BMB and the co-suspect in the case,
because the timeframe for legal action will expire next
Thursday, according to Kittisarn Thiraphan, the special
attorney on economic crimes.

Mr Vichien is a senator and the senate recently refused to
allow police to question Mr Vichien. "The Attorney
General's Office can do nothing because he is protected by
privileges granted by the constitution," Mr Kittisarn said.

However, he said police had charged Mr Vichien with
dishonestly performing his duty and with causing damage to
the BMB. The timeframe for action on such charges is 15
years.

"The police have already submitted their investigation
report to the Attorney General's Office, and we will move
after the end of the current parliamentary session," he
said.

Mr Vichien's senate term will also end next month, but he
is running for a seat in Bangkok in the March 4 election.
Mr Vichien and Dr Panya were accused by the Bank of
Thailand in November last year of breaching central bank
orders by extending guarantees worth 66 million baht to
Bangkok Metropolitan Trust Plc, a BMB subsidiary, in May
1997.

The central bank had disallowed the BMB to extend loans to
its subsidiaries since March 23, 1995, after discovering
that the BMB had extended huge loans to its subsidiaries
and most of the loans had become non-performing. According
to the central bank, Mr Vichien and Dr Panya approved
guarantees for two promissory notes issued by Bangkok
Metropolitan Trust Plc, intentionally breaching the order.

However, both former executives argued that the central
bank had not totally barred the BMB from extending loans to
Bangkok Metropolitan Trust. It only required that each deal
must be approved by at least two authorised directors of
the BMB, they said.

Moreover, at that time, the country's financial sector was
in crisis and the central bank had ordered all commercial
banks to provide financial support to their affiliated
finance companies facing heavy deposit withdrawals, they
claimed. In prosecuting Dr Panya, the state attorney asked
the court to punish him on criminal charges and also to
order him to repay damage totalling 66 million baht to the
BMB. (Bangkok Post  19-Feb-2000)

JASMINE INT'L: Debt rehab plan accepted
---------------------------------------
Creditors of Jasmine International have agreed to
reschedule $325 million in debt. Payments will be extended
to 2006, with no write-down involved. Creditors
representing 98.1% of outstanding debt voted for the plan.

Songrit Kusomrosananan, chief executive officer of Jasmine
International, said the company would make the first
payment of $15 million in June.  Mr Songrit said that 20%
of the debts would be repaid in baht at minimum lending
rates for the first three years, and at minimum lending
rates plus 0.3 percentage points in the fourth to sixth
years.

The remaining 80% will be paid in US dollars at Libor
(London Interbank Offered Rate) plus one percentage point
for the first three years, and Libor plus 1.5 points in the
fourth to sixth years.  Of the total $325 million, Jasmine
International alone held $180 million and the rest was held
by its subsidiaries.

The subsidiary with the largest loan is Jasmine
International Overseas, at $67 million. Its debt was
incurred from investment in several telecom projects such
as ACeS in Indonesia and a mobile phone project in India.

Jasmine International Overseas sold its holding in ACeS for
$30 million, and will use the funds to retire debt. The
company believed its cashflow would also improve from its
future investments in internet operations.  Shares of
Jasmine closed yesterday at 27.25 baht, up one baht, on
turnover worth 66.4 million.  (Bangkok Post  19-Feb-2000)

KRUNG THAI BANK: SET falls across the board
SIAM CEMENT: SET falls across the board
TELECOMASIA: SET falls across the board
THAI TEL.& TEL.: SET falls across the board
-------------------------------------------
Shares fell sharply on across-the-board selling, traders
said.  The SET index fell 4%. Declining shares outpaced
advancers 219 to 29, excluding those traded on the foreign
board.

Local investors were net sellers, following foreigner's
heavy selling, said an analyst at Adkinson Securities.
Usually, local investors help cap losses on the index, with
speculative buying in smaller stocks.

Among declines, Krung Thai Bank fell 6%, helping to pull
the banking sector down 4.6%. TelecomAsia fell 1.5%, and
Thai Telephone & Telecommunication fell 8.7%.  Most
heavyweight stocks were lower, signaling continued selling
by foreign investors. Siam Cement fell 7.2%.  (The Asian
Wall Street Journal  18-Feb-2000)

NAKORNTHAI STRIP MILL: Creditors approve debt restructure
---------------------------------------------------------
The majority of creditors of Nakornthai Strip Mill Plc
yesterday voted for a debt-restructuring plan which would
effectively reduce the country's non-performing loans by
Bt14 billion.

Yesterday, under the Corporate Debt Restructuring Advisory
Committee's supervision, four creditors of the company -
which control US$354 million (Bt13 billion), or 88.41 per
cent, of a total of Bt32.5-billion debt - approved the
plans.  Only Krung Thai Bank opposed the plan.

Meanwhile bond-holders who were not part of the
restructuring scheme also approved the plan.
Nakornthai Strip Mill will now repay US$85 million, or
Bt3.4 billion, up front. About Bt20 billion will be
converted to equity, which represents 90 per cent of its
newly paid-up capital.

Through eight-year warrants to be issued to NSM, the
company's existing shareholders will be entitled to buy
back no more than 30 per cent of shares from the creditors.
The company will then carry only Bt8 billion of debts on
its balance sheet.

"NSM will now become an attractive company, because its
debts will fall to only around Bt8 billion," said major
shareholder Sawasdi Horrungruang.

Meanwhile the debt-restructuring advisory committee
announced that Jasmine International Plc's major creditors,
owning 98.1 per cent of total debts, had voted for a plan
to restructure US$216.5 million of debt via rescheduling.
The repayment schedule is set at 2006, from 2001.

Both sides agreed that Jasmine would need to shoulder one
percentage point above the London Interbank Offered Rate
(Libor) during 2000-2003 for yen- or dollar-loans and the
minimum lending rate (MLR) for baht loans.

During 2004-2005, the rates are set at five percentage
points above the offered Libor rate for foreign loans and
50 basis points above MLR for baht loans. In 2006 the rates
will be jacked up another one percentage point.

Bangkok Bank is a major creditor owning $55.65 million, or
25.2 per cent, of the total. Others are the Bank of Tokyo-
Mitsubishi and Sumitomo Bank.

"[They agreed because] we have sufficient cash flow to
repay the debts," said Songrit Kusonsorananun, president of
the Thai company.

Creditors also approved the plan to sell 600 million new
shares, said Songrit. Twenty per cent of the proceeds will
be for debt repayment and the rest for expansion plans into
the information-technology business. (The Nation  19-Feb-
2000)

SCF FINANCE AND SECURITIES: Put in receivership
SIAM CITY CREDIT FIN.AND SECS.: Put in receivership
SIAM CITY SYNDICATE: Put in receivership
---------------------------------------------------
The Central Bankruptcy Court has placed SCF Finance and
Securities, Siam City Credit Finance and Securities, and
Siam City Syndicate, in receivership.

If the firms fail to settle their debts with creditors
within two months of the publication of the receivership
notices in the Royal Gazette, they will be declared
bankrupt.  The court ruling on Wednesday was at the request
of the Financial Sector Restructuring Authority (FRA),
which supervises the assets of 56 now-defunct finance
companies.

Earlier this month, the FRA took similar action against
Asia Finance Syndicate, after several creditors filed
separate suits for repayment outside of the FRA settlement
process, which calls for equal treatment of all claims.
The FRA filed for bankruptcy to suspend other suits and
protect the interests of other creditors, according to FRA
chairman Kamol Juntima.

"Some creditors had filed suits against those companies in
order to be repaid the full amount of outstanding debts
before other creditors. The Civil Court had already ruled
in favour of the creditors filing the suits," Mr Kamol
said. "This left other creditors at a disadvantage. The FRA
could not stop the suits since our legal authority is quite
limited. Therefore, we asked the Central Bankruptcy Court
to declare those companies bankrupt and put them into
receivership to protect the interests of all creditors."

Once in receivership, distribution of proceeds from asset
sales is managed under the bankruptcy code.  Creditors of
the three finance companies will have to file their claims
with the Legal Execution Department within two months, or
four months for non-resident creditors. The FRA will speed
up the processing of claims.

SCF Finance and Securities was founded in 1993 with paid-up
capital of 520 million baht. At the end of 1999, it had
assets of 12.1 billion baht and debt of 27.8 billion. The
central bank's Financial Institutions Development Fund
holds claims equal to 87% of total debt.

Siam City Credit Finance and Securities, founded in 1994
with paid-up capital of 520 million baht, had assets of
12.29 billion baht and debts totalling 27.4 billion at the
end of 1999.  The Financial Institutions Development Fund
holds claims equal to 78% of total outstanding debt.

Siam City Syndicate was founded in 1996 with paid-up
capital of 366.25 million baht. At the end of 1999, it had
assets of 5.29 billion baht and debts totalling 14.46
billion. The fund holds claims equal to 79% of the total
debt.  All three companies were ordered closed by the FRA
in December 1997.  Meanwhile, the FRA announced that it had
sold two lots of securities on Thursday for 19.3 million
baht. (Bangkok Post  19-Feb-2000)

THAI PETRO.INDUS.: Objects to change of plan administrator
----------------------------------------------------------
Thai Petrochemical Industry plc yesterday submitted its
petition to the Central Bankruptcy Court objecting to its'
creditors petition to change the chief executive of a
business rehabilitation plan for TPI.

TPI's petition also names the company as the rehabilitation
planner and plan administrator, instead of Prachai
Leopairatana, the company's chief executive officer. The
creditors, on the other hand, have proposed Effective
Planner Co as the administrator and Ferrirer Hodgson as
planner.

A representative of the creditors said negotiations out of
court did not progress much yesterday. The court had no
hearing yesterday.  The court will have the next hearing on
March 1, giving the two sides about 2 weeks to negotiate
out of court. (The Nation  17-Feb-2000)


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