/raid1/www/Hosts/bankrupt/TCRAP_Public/000229.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

           Tuesday, February 29, 2000, Vol. 3, No. 41

                                    Headlines


* A U S T R A L I A *

LIBERTYONE: Red ink stains first-year results
REINSURANCE AUSTRALIA CORP.LTD.: Rating downgraded
TELSTRA: ACC calls for peace in "churning" slugfest
TELSTRA: Customer transfer part of churning settlement


* C H I N A  &  H O N G  K O N G *

CHAMAX DEVELOPMENT LTD: Facing winding up petition
CHINA ASIA ENTERPRISES LTD: Facing winding up petition
GRADE TOP INVESTMENTS LTD: Facing winding up petition
HING YIU ENGINEERING LTD: Facing winding up petition
HOLDSAME LIMITED: Facing winding up petition
INFINITY DEVELOPMENT(HLDGS)CO.: Facing winding up petition
SUNWELL GARMENT FACTORY LTD: Facing winding up petition
THAIQUAING ELECTRONICS CO.: Facing winding up petition
WERNER CLADDING SYSTEMS: Facing winding up petition
WORLD KEEN LTD: Facing winding up petition


* I N D O N E S I A *

PT BAKRIE FINANCE CORP.: Bankruptcy hearing over to March 2
PT BUMI MODERN TBK: JSX suspends trading of shares
PT FISKAR AGUNG: Liquidation deadline extended 30 days
PT INTI INDORAYON UTAMA: Audit suggested before closedown


* J A P A N *

AIWA CO.: Projects first group net loss in 13 years
CLARION CO.: Posts net loss of 25B Yen for FY99
KOMAI TEKKO INC.: To cut group debt to 7.6B Yen in FY99
MATSUZAKAYA CO.:  To close Yamagata Store in August
MITSUBISHI CORP.: Sued over alleged price-fixing plot
TOMEN CORP.: Tokai Bank leading rescue efforts


* K O R E A *

CHEILJEDANG CORP.: Fined for overseas bonds misuse
DAEWOO CORP.: Fined for overseas bonds misuse
DAEWOO CORP.: Creditors finalize rehab program at last
DAEWOO CORP.: To be divided into 3 divisions by July
DOOWON LIFE INSUR.: FSC revokes license after bankruptcy
HANJIN SHIPPING: Fined for overseas bonds misuse
HYUNDA ELECTRONICS IND CO.: Fined for overseas bonds misuse
HYUNDAI ENG.& CONSTRUC.CO.: Fined for overseas bonds misuse
SAMSUNG CORP.: Fined for overseas bonds misuse
SSANGYONG MOTOR: Debt-to-equity swap ahead


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

GOODYEAR PHILIPPINES: Gov't may require market-rate rent
ONGPIN GROUP: APC files P150M suit against it
PHILIPPINE NAT.BANK: Needs $1B to compete,comply with rules
PILIPINAS SHELL PETROLEUM CORP.: Cuts output, losses still
UNIWIDE GROUP: Moves to get back Ecology Bank


* S I N G A P O R E *

CLOB INT'L: What if investors reject both Clob deals?


* T H A I L A N D *

DUNSIT THANI PCL: Subsidiary sued by lender, it tells SET
LIU FAMILY LTD PARTNERSHIP: Revises restructure strategy
SUPALAI PLC: Reports signing restructure term sheet to SET
THAI MILITARY BANK: Recapitalization target by end of 1Q


=================
A U S T R A L I A
=================

LIBERTYONE: Red ink stains first-year results
---------------------------------------------
The Internet group LibertyOne slipped deeper into the red
over its first full year of operation, posting a $35million
net loss for 1999, as receipts from customers failed to
keep pace with its spending.

A tightening of accounting policies in preparation for the
company's pending Nasdaq listing also cut into earnings,
leaving the group with an even larger operating loss of
$40.3million.  However, a $7.4million abnormal gain from
the sale of some assets helped tidy the bottom line.

Strong revenue growth, up 346per cent to $24million,
exceeded forecasts, directors said. However, less than half
($11million) of this revenue came from customers' receipts,
a key cash-flow measure, while LibertyOne burned up
$37million in paying its suppliers and employees.

LibertyOne's shares were static on $1.18 after the release
of the results, which were due to be released on Thursday,
but only signed off by the board late that night. The chief
financial officer, Mr Jack Surdoval, said he could not
comment on when the company was aiming to reach break-even
point, as LibertyOne's businesses were all at different
stages of development.

"I can't talk about that (turning a profit), it will depend
on a number of things," Mr Surdoval said.

He also could not comment on the Nasdaq listing, except to
say that things were progressing.  "We're moving about as
fast as we can," he said. "It is probably in a good
position for us to get there at the moment."

Under the conditions set down at its extraordinary general
meeting last year, LibertyOne has until the middle of March
to consolidate its shares and attempt a Nasdaq listing. If
it does not undertake a share consolidation before the
date, it will be required to seek shareholder approval
again.  LibertyOne said its recently rationalised Web
development business, Zivo, had been the primary
contributor to the result, generating revenue of
$10.4million.

"I think it (Web integration) will actually start to grow
faster. There are three or four businesses that we have
acquired that will be included in the results this year,"
Mr Surdoval said.

Mr Surdoval said between $5million and $6million of
goodwill had also been written down on some of LibertyOne's
technologies, including the PABX technology. LibertyOne
also revealed it was sitting on an unrealised amount of
$17million with its investment in the Nasdaq-listed
Internet content group Chinadotcom. The escrow on
LibertyOne's stake is due to be removed in July, although
Mr Surdoval indicated there were no plans at this stage to
sell the investment.

"I think if you look at the investments that we have, you
will see we are not a trading investor," Mr Surdoval said.
(The Age  26-Feb-2000)

REINSURANCE AUSTRALIA CORP.LTD.: Rating downgraded
--------------------------------------------------
Reinsurance Australia Corporation Limited ("Re AC") has
announced that it has been advised that ratings agency AM
Best has downgraded the Company's rating from B++ (Very
Good) to C- (Weak).

This follows Re AC's recent announcement of its estimated
unaudited year-end result. Re AC has announced previously
that it has formally ceased to write new business.
(Sydney Morning Herald  25-Feb-2000)

TELSTRA: ACC calls for peace in "churning" slugfest
---------------------------------------------------
The Australian Competition and Consumer Commission has
hinted at a new era of cooperation with one of its biggest
corporate adversaries, Telstra, after the regulator
withdrew four anti-competition notices against the
telecommunications carrier.

Telstra yesterday claimed the ACCC's decision to abandon
pursuit of the commercial "churn notices" - the transfer of
customers to other providers - would save it hundreds of
millions of dollars.  The conclusion of the commercial
churn episode ends years of legal negotiation between the
carrier and the competition regulator, which had claimed
that Telstra had breached the Trade Practices Act.

But Mr Brian Perkins, a director of the Telstra rival AAPT,
slammed the decision, saying it was outrageous that there
could still be a charge of $13.50 a line for winning
customers away from Telstra.  In a statement issued by the
ACCC and agreed to by Telstra, the ACCC's acting chairman,
Mr Allan Asher, said Telstra had worked to improve its
customer-transfer processes and both parties wanted to drop
the three-year old issue.

"It is now time for us, too, to move on," Mr Asher said.
"Both Telstra and the ACCC seek to put this adversarial
episode behind us and focus on forward-looking and
cooperative arrangements."

In an internal memo to Telstra staff, the managing director
of Telstra's wholesale and international division, Mr Doug
Campbell, hinted that the settlement could spell a new era
for relations between the carrier and the ACCC, which have
engaged in some frosty battles.

"This is a very positive outcome for Telstra on this issue,
and also creates a useful platform from which Telstra can
address a range of other significant issues with the ACCC,"
Mr Campbell said.

The commercial churn issue stems from 1997, when the ACCC
decided that Telstra's reliance on a manual system of
transferring customers to other carriers was "inefficient"
and that its insistence on making other telecommunications
service providers responsible for customer debts owed to
Telstra was not fair.

The ACCC's Mr Asher said Telstra had installed new billing
systems, the time taken to transfer customers to their
preferred telecommunications service provider had
shortened, and churn costs were falling.

"The ACCC is now convinced that the market has moved on
compared to the landscape of 1997, when the commercial
churn arrangements were introduced, and 1998, when the ACCC
felt compelled to take action," Mr Asher said. (The Age
24-Feb-2000)

TELSTRA: Customer transfer part of churning settlement
------------------------------------------------------
Telstra has agreed to spend $4.5 million to upgrade its
system for transferring disgruntled customers to
competitors' phone services, as part of a major settlement
with the competition watchdog over its "churn" practices.

The agreement, announced yesterday by the Australian
Competition and Consumer Commission, comes after three
years of wrangling and just two weeks before Telstra's
behaviour was to come before the Federal Court.

At issue was whether Telstra had acted anti-competitively
by having cumbersome systems to transfer customers who
decided to leave Telstra and move to companies such as
AAPT, One.Tel and Optus. If proved, Telstra could have
faced fines of up to $10 million and injunctions to prevent
it from continuing to breach the Trade Practices Act.
Both sides were claiming victory yesterday.

"There has been no finding against or concession by
Telstra, that it acted in breach of the Trade Practices
Act," Telstra executives told staff in an internal memo.
"No fines have been imposed on Telstra and Telstra is not
paying any compensation to any third party. Further,
Telstra's churn service will continue to operate in the
same way with a marginal reduction in charges."

Telstra sources claimed it was the ACCC that had sought a
settlement because the watchdog's case was weak. However,
acting chairman of the ACCC, Mr Allan Asher, said the
commission had decided to settle the case because Telstra
had made improvements and the market had moved on since the
commercial churn arrangements were introduced in 1997.

He also said the ACCC felt the Telstra processes were
inefficient. The official statement said: "This agreement
follows an acknowledgment by Telstra that the commercial
churn service may have had an adverse effect on the
competitive position of carriers seeking to transfer
customers. For its part, the commission acknowledges that
Telstra's introduction of commercial churn was an attempt
by it to deal with divisive issues surrounding the transfer
of customers for local call services."

The key to the settlement is a $4.5 million fund paid for
by Telstra but administered by the ACCC to help these
service providers develop their technical capability to
deal with each other online. This automated system for
churning customers is much cheaper and more efficient.
Telstra also has agreed to reduce the price it charges
competitors to churn their customers under the old system.

AAPT's director, regulatory and legal, Mr Brian Perkins,
said it was outrageous that Telstra could still charge its
competitors $13.50 - reduced from $15 - for winning
customers away from it.

"If Telstra automated the process, as recommended by the
ACCC last year, it could reduce churn charges
significantly," he said. (Sydney Morning Herald  24-Feb-
2000)


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

CHAMAX DEVELOPMENT LTD: Facing winding up petition
--------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 29 on the petition of
China Weal Property Mangement Limited for the winding up of
Chamax Development Limited.  A notice of legal appearance
must be filed on or before March 28.

CHINA ASIA ENTERPRISES LTD: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 15 on the petition of The
Hongkong and Shanghai Banking Corporation Limited for the
winding up of China Asia Enterprises Limited.  A notice of
legal appearance must be filed on or before March 14.

GRADE TOP INVESTMENTS LTD: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 29 on the petition of
China Weal Property Mangement Limited for the winding up of
Grade Top Investments Limited.  A notice of legal
appearance must be filed on or before March 28.

HING YIU ENGINEERING LTD: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 22 on the petition of Yiu
Po Fung for the winding up of Hing Yiu Engineering Limited.
A notice of legal appearance must be filed on or before
March 21.

HOLDSAME LIMITED: Facing winding up petition
--------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 15 on the petition of The
Hongkong and Shanghai Banking Corporation Limited for the
winding up of Holdsame Limited.  A notice of legal
appearance must be filed on or before March 14.

INFINITY DEVELOPMENT(HLDGS)CO.: Facing winding up petition
----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 29 on the petition of
China Weal Property Mangement Limited for the winding up of
Infinity Development (Holdings) Co. Ltd.  A notice of legal
appearance must be filed on or before March 28.

SUNWELL GARMENT FACTORY LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for April 5 on the petition of
Yeung Shui Lin for the winding up of Sunwell Garment
Factory Limited.  A notice of legal appearance must be
filed on or before April 4.

THAIQUAING ELECTRONICS CO.: Facing winding up petition
------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 15 on the petition of
Cheng Pik Shan for the winding up of Thaiquain Electronics
Company Limited.  A notice of legal appearance must be
filed on or before March 14.

WERNER CLADDING SYSTEMS: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 22 on the petition of Yiu
Po Fung for the winding up of Werner Cladding Systems
(Asia) Limited. A notice of legal appearance must be filed
on or before March 21.

WORLD KEEN LTD: Facing winding up petition
------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 15 on the petition of The
Hongkong and Shanghai Banking Corporation Limited for the
winding up of World Keen Limited.  A notice of legal
appearance must be filed on or before March 14.


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

PT BAKRIE FINANCE CORP.: Bankruptcy hearing over to March 2
-----------------------------------------------------------
The Jakarta commercial court has adjourned a court hearing
on a bankruptcy application refiled by four foreign
creditors against PT Bakrie Finance Corporation to March 2.

A Bakrie Finance's lawyer from Fuady, Tommy, Aji Wijaya law
firm, said in today's hearing the court only received the
application filed by the creditors' lawyer, Hanafiah,
Panggawa, Adnan, Bangun, Kelana law office.  The lawyer,
who requested anonymity, said the next hearing will take up
the response from Bakrie Finance.

The four creditors are AB Capital Markets (Hong Kong) Ltd,
Cho Hung Leasing and Finance (Hong Kong) Ltd, Hanmi Leasing
and Finance (Hong Kong) Ltd and KEB Leasing and Finance
Ltd.

According to the application dated Feb 16, the creditors
refiled the application after their previous petition was
rejected by the court due to legal weaknesses of the
application letter.  The document said the creditors' total
loans to Bakrie Finance amounted to 14 mln usd.  (AFX News
Limited  24-Feb-2000)

PT BUMI MODERN TBK: JSX suspends trading of shares
--------------------------------------------------
Trading in PT Bumi Modern Tbk (JSX:BUMI) shares has been
suspended by the Jakarta Stock Exchange (JSX) since Monday
as there was no clear schedule for the company's rights
issue plan.

A JSX official said the suspension would be imposed until
there was clear information about the planned issue
schedule.  Bumi Modern had earlier announced plans to
launch a rights issue to obtain funds to acquire Yemeni oil
company Gallo Oil Ltd.  However, the issue had been
postponed twice, on December 15, 1999 and February 15,
2000. The company had said it planned to take over the firm
by the end of February or early March.

Earlier, a general shareholders meeting had been postponed
because it had not obtained the necessary approval from the
Capital Markets Supervisory Board (Bapepam), while the
extraordinary shareholders meeting held last Friday was
considered by many obsersers as having deviated from
regulations, because as a company that is under supervision
of the Indonesian Bank Rstructuring Agency (IBRA), it ought
to have informed the IBRA about its plan to hold a rights
issue.

The company in December 1999 announced that it would change
its core business from the hotel business to oil drilling,
soon after it acquired Gallo Oil Ltd.  Bumi said the
decision was taken after the management decided that the
country's hotel industry was likely to remain sluggish.
Asia Pulse  22-Feb-2000)

PT FISKAR AGUNG: Liquidation deadline extended 30 days
------------------------------------------------------
PT Fiskar Agung curator Makarim & Taira S has extended the
deadline to liquidate the company by another month, pending
further negotiations with interested investors, Fiskar
corporate relations manager Rudi Zulfian said.

"The deadline has been extended by one month from Feb 26.
It seems that the curator prefers to find new investors
rather than to liquidate Fiskar Agung," Zulfian told AFX-
Asia. "I understand that the curator is still in talks with
three interested parties including the association of
securities houses (APEI) and two foreign investors," he
said.

Fiskar Agung was declared bankrupt after it was sued by a
number of creditors for its failure to service debt of
around 30.5 mln usd. "APEI always attended creditors
meeting. I think they are serious about bailing out Fiskar
Agung," he said.

Zulfian said the company is currently still running its
operation.  There has been no layoffs so far, he said,
adding: "We are still using imported materials, but by
April we may have to start using local raw materials," he
added.  (AFX News Limited  28-Feb-2000)

PT INTI INDORAYON UTAMA: Audit suggested before closedown
---------------------------------------------------------
Experts from the Bogor Institute of Agriculture supported a
new audit of pulp and rayon firm PT Inti Indorayon Utama on
Saturday, following a recent recommendation by the
environment minister to close down its operations.

Social economics expert Bungaran Saragih, environmental
management expert Gunarwan Suratmo and forestry expert
Rudolph Tarumingkeng said a comprehensive audit of
Indorayon was badly needed to get a clearer picture of
the company's operations and thereby ensure an objective
decision on its fate.

Bungaran said a new audit of Indorayon should be more wide-
reaching than the previous one by American consultants
Labat Anderson Inc. in 1995, and not only cover the
company's environmental management system.

"What's more important is to study its socioeconomic
impact," Bungaran told The Jakarta Post after chairing a
discussion held by the institute's Center for Development
Studies on the results of the 1995 Labat Anderson audit.

Nevertheless, Bungaran suggested the government gave
Indorayon a chance to improve its operations based on the
results of the new audit before it decided to close it
down.  "If Indorayon can improve its environmental and
socioeconomic impact, then it should be given a chance to
keep operating," he said.

The company's two-decade presence in Porsea district near
Lake Toba in North Sumatra has led to mounting criticisms
and pressure from local people. Some have demanded the
closure of its pulp and rayon mill, complaining it has
caused environmental degradation in the area.  Their
demands were heard by State Minister of Environment Sonny
Keraf, who recently recommended to the Cabinet that the
plants be closed down or relocated to another area.

State Minister of Investment and State Enterprises
Development Laksamana Sukardi disagreed, however, and
proposed a new audit of Indorayon before any decision was
made.  Indorayon's operations have been on hold since June
1998, after pressure from local residents prompted the then
president B.J. Habibie to order its suspension.

Last year Habibie ordered an independent audit but the
instruction was never implemented.  The company is listed
on the Jakarta Stock Exchange and is also traded in the
United States through American depository receipts.

Indorayon's US$600 million timber estate and mills, which
began operations in 1980, have an annual capacity of
180,000 metric tons of dissolving pulp and 60,000 tons of
rayon.  Firman Manurung from the Lake Toba Heritage
Foundation insisted that whatever the result of the audit,
assuming that such an audit was necessary, the company must
relocate its plant from Porsea.

"They must relocate their toxic plant to an industrial
area, far from residential housing areas," he said, adding
that his demand was based on a recent study by the
foundation's team of experts on the impact of Indorayon's
operations on the environment of Lake Toba.

The study showed that Indorayon's operations had caused not
only serious environmental problems but also economic,
social, cultural, legal and political problems in North
Sumatra, he said.  Firman said the best solution to the
current problem would be to close down Indorayon's plants
because they had made people in the surrounding area suffer
for so long.

Environmental management expert Gunarwan, however, argued
that closing down Indorayon would be a setback to the
region's economy, the country's entire textile industry and
most of all to Indorayon's local employees.  The benefit,
he added, would of course be a cleaner environment.

The continuation of its operations may prove costly to
Indorayon, since it would require additional investment in
its environmental management system and additional spending
on community development, he said.  Gunarwan agreed with
Firman's argument that the choice for the site of
Indorayon's mills -- some two kilometers downstream from
the major tourist destination of Lake Toba -- was a mistake
from the start, because polluting industries such as pulp
and rayon should avoid populated areas.

"Indorayon's closeness to populated areas has automatically
incited conflicts with local communities," he said.

Meanwhile, forestry expert Rudolph Tarumingkeng said that
based on Labat Anderson's 1995 audit he saw no problem in
Indorayon's deforestation activities as the company had
continued to replant deforested areas.  However, he said
the company did not apply sound forestry management in fire
prevention and pest control. In addition, the company
neglected the condition of its roads, which used to
transport between 400 to 500 truck- loads of logs a day
from its forests to its plant, resulting in noise
pollution.

Labat Anderson conducted the audit in 1994 and 1995 at the
request of Indorayon in response to growing criticisms by
local residents. The company focused its audit on the
company's forestry operations and its mills activities.
Experts participating in the discussion, however, said the
audit lacked validity due to its reliance on data provided
by Indorayon when auditing the mills.

They further argued that the auditor's understanding of the
social impact of Indorayon operations was insufficient.
Willy Tjen, the then leader of the Labat Anderson audit
team for Indorayon, defended the result, saying the audit
was never intended to be comprehensive.

"It was merely a management tool for Indorayon to improve
their environmental systems," Tjen said.

He said Indorayon did not entirely pass the environmental
audit, and that several environmental issues in its plant
operations needed to be resolved. Nevertheless, he added,
some members of the audit team had recently revisited
Indorayon and witnessed that the company had largely
followed the consultant's recommendations to improve its
environmental management system.

According to Tjen, one of the main problems during
Indorayon's first few years of operations had been a lack
of proper concern at upper management level with
environmental issues.  "The management culture simply had
to change," he said, but he added he expected by now
Indorayon's management to be more committed to protecting
the environment. (The Jakarta Post  28-Feb-2000)


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

AIWA CO.: Projects first group net loss in 13 years
---------------------------------------------------
Aiwa Co.(6761) said Friday that it will slip into the red
with a consolidated net loss of 9.7 billion yen in the year
ending March, compared with a group net profit of 3.5
billion yen a year earlier.

The company had earlier projected 2.9 billion yen in group
net profit. If the projections hold, the group will face
its first net loss in 13 years.  Performance was undermined
by production delays due to a shortage of key components
such as semiconductors. The yen's appreciation also dragged
earnings down, company officials said.

Group sales are projected at 330 billion yen, down 6% from
a year before. Deliveries of stereos and radio cassette
recorders have been delayed by more than one month because
of tight supplies of microchips and chip condensers caused
by intense global demand by the technology-related sector.
Shortages have been especially noticeable since August.

Meanwhile, the company saw components other than
semiconductors pile up rapidly, resulting in increased
interest payments and missed business opportunities.
Aiwa is asking domestic microchip makers to compensate for
losses from supply failures but it is almost certain that
any compensation will fall short.

The yen's rise against the dollar and the euro eroded group
sales by 42 billion yen. The company had expected the
Japanese currency's rise would be temporary and did not
aggressively pursue forward currency contracts and other
buffering measures.  The strong yen, coupled with delayed
production, contributed to cutting the group's earnings by
an estimated 10 billion yen.

Moreover, intensified price competition has led to an
average price cut of about 13% for stereos, audio equipment
and other products.  President Yoshio Ishigaki said the
company will consider cutting executive pay as well as
reducing annual dividends.  (Nikkei  25-Feb-2000)

CLARION CO.: Posts net loss of 25B Yen for FY99
-----------------------------------------------
Clarion Co. (6796), a maker of car audio equipment,
announced Friday that it anticipates a net loss of 25
billion yen for the fiscal year through March 31.

The net loss would be the company's first since fiscal
1993. For fiscal 1998, the company reported a net profit of
1.29 billion yen.  The manufacturer will post total
extraordinary losses of 23 billion yen, including 12.5
billion yen in connection with the reorganization of
domestic sales outfits and 4.1 billion yen to cover
unfunded pension liabilities. In addition, valuation losses
on its stock portfolio will total 2 billion yen.

Next fiscal year, Clarion plans to eliminate its estimated
unfunded pension liabilities by transferring 3 billion yen
in stock holdings to a trust account.

"With major customers such as Nissan Motor Co. (7201)
demanding lower prices, in addition to the 10 billion yen
in rationalization measures that we already have announced,
we are now pursing additional measures of around 8 billion
yen," said the company's president, Ichizo Ishitsubo,
announcing new cost-cutting targets for fiscal 2000.

Clarion will not pay out its planned fiscal year-end
dividend payment of 3 yen, forgoing any dividend payments
for the year. (Nikkei  26-Feb-2000)

KOMAI TEKKO INC.: To cut group debt to 7.6B Yen in FY99
-------------------------------------------------------
By the end of this fiscal year, Komai Tekko Inc. (5915)
plans to reduce its group interest-bearing liabilities to
about 7.6 billion yen from 9 billion yen seen on March 31,
1999.

With this month's completion of a new office building at
its main plant, the manufacturer of steel frames and
bridges has largely completed its capital projects, so it
will focus on debt reduction.

In addition, because a larger proportion of sales are
coming from the public sector, the company is receiving an
increasing number of upfront payments, and as a result it
has ample cash reserves.  From fiscal 2000 onward, it
expects dividend and interest income to roughly equal
interest expenses. (Nikkei  25-Feb-2000)

MATSUZAKAYA CO.:  To close Yamagata Store in August
---------------------------------------------------
Matsuzakaya Co. (8235) has decided to close an unprofitable
department store subsidiary in Yamagata, Yamagata
Prefecture, at the end of August as part of ongoing
corporate restructuring, company sources said.

Located in the center of the city, Yamagata Matsuzakaya has
long been an anchor of the downtown shopping district. But
the opening of large retail outlets in the suburbs has
depressed earnings, resulting in an accumulated loss of
about 5 billion yen.

Though the store adopted a series of cost-saving measures,
including payroll reduction, it failed to turn business
around. The parent company, hard pressed by a continued
slump in earnings, was unable to extend further financial
assistance. (Nikkei  25-Feb-2000)

MITSUBISHI CORP.: Sued over alleged price-fixing plot
-----------------------------------------------------
Ucar International Inc. is suing its former owners,
Mitsubishi Corp. and Union Carbide Corp., asking for $1.5
billion in damages and accusing the two companies of aiding
and abetting a widespread steel industry price-fixing
conspiracy for which Ucar itself has admitted guilt.

In a news release announcing the suit, Ucar alleged that in
1995, Mitsubishi and Union Carbide knew the former top two
executives of Uca "had engaged in illegal price-fixing
activities." Mitsubishi and Union Carbide sold a total of
75% of Ucar in January 1995, to the Blackstone Group, a New
York private-equity firm.

Ucar, a Nashville, Tennessee, maker of carbon and graphite
electrodes, said Mitsubishi and Union Carbide profited from
"ill-gotten gains" as a result of the alleged conspiracy.
The suit demands the former parent companies return to Ucar
about $1 billion companies return to Ucar about $1 billion
n dividend and stock-repurchase payment made to them.

Mitsubishi and Union Carbide each denied the accusations in
Ucar's suit, which was filed in U.S. District Court for the
Southern District of New York. Union Carbide spokesman Sean
Clancy said the suits is "totally without merit" and that
the Danbury, Connecticut, company plans to file
counterclaims against Ucar and its attorneys.

Roy Winnick, a U.S. spokesman for Mitsubishi, called the
suit "a baseless attempt by Ucar to shift blame for its own
willful violation of U.S. antitrust laws to an innocent
party."

The finger-pointing stems from a long running U.S. Justice
Department investigation into alleged price fixing in the
graphite-electrodes business. Graphite electrodes are used
to heat furnaces in steel minimills.

During the past two years, prosecutors have charge nearly a
dozen companies with price fixing in the electrodes
business and generated more than $300 million in fines. In
January 1999, a federal grand jury indicted Mitsubishi, of
Japan, inconnection with the probe. Mitsubishi denies the
charges. In September, according to the Justice Department,
former Ucar Chairman and Chief Executive Robert Krass and
former Chief Operating Officer Robert J. Hart pleaded
guilty to charges they conspired to fix graphite-electrode
prices.

Mr. Krass agreed to serve a 17-month jail term and pay a
$1.25 million criminal fine. Mr. Hart agreed to a nine-
month jail term and a $1 million criminal fine. In 1998,
Ucar itself pleaded guilty to a price-fiing charge and was
fined $110 million.

In a conference call with analysts, Ucar's current chairman
and chief executive, Gilbert E. Playforn, said Ucar brought
suit against its former parents because "by far the
majority of our debt was incurred to finance payments made
to Mitsubishi and Union Carbide."

He said Ucar has replaced the senior officers who were
involved in the scheme, settled criminal and civil claims
and is a attempting to address the remaining issues from
the case. The suit is being brought at the direction of a
committee composed of Ucar's independent directors, Mr.
Playford said. (The Asian Wall Street Journal  25-Feb-2000)

TOMEN CORP.: Tokai Bank leading rescue efforts
----------------------------------------------
Japan's Tokai Bank is leading a rescue attempt for Tomen,
the troubled trading company that recently asked creditors
to forgive debts worth Y200bn (Dollars 1.8bn), in a move
that highlights the degree to which traditional keiretsu
corporate ties continue to influence the Japanese way of
doing business.

Tokai, which heads the keiretsu group of the same name, has
asked Toyota Tsusho, part of the same alliance, to become
Tomen's leading shareholder as part of a Y30bn capital
increase. The bank is also expected to install new
management at Tomen, which had debts of Y1,634bn at March
1999, and encourage a broader alliance between the two
groups.

Under the bank's rescue plan, Tomen will record a Y407.4bn
write-off to cover losses incurred in liquidating 123 group
companies this year and begin sales of 84 loss-making
affiliates. The company will then issue new shares worth
Y30bn in September, pending approval from creditors for the
debt forgiveness scheme.

Tokai and other financial institutions are expected to
purchase Y15bn worth of these shares, while Toyota Tsusho
and other companies, including non-keiretsu members, would
buy the rest.  Toyota Tsusho, 22.7 per cent owned by Toyota
Motor, said it was considering the proposal, which would
give it about 10 per cent of Tomen.

The company said it had contacted more than 100
organisations in industries ranging from chemicals to
machinery about participating in the capital increase.
But the company admitted that investor confidence had been
low. Tomen's shares fell below book value to close at Y44
earlier this week. However, they recovered strongly
yesterday to finish at Y66, up 37.5 per cent.

Some analysts said Tokai's scramble for funds revealed how
stricter accounting standards, which come into effect next
year, are forcing Japanese companies to face up to their
debts. Under the new rules Tomen needed to sell assets to
avoid collapse.

"In general, the rules toward consolidated accounts,
including the mark-to-market rule and pension rules, force
companies to write things off and expose losses," said
Craig Chudler, strategist at Nikko Salomon Smith Barney.

Concern about the impact of accounting changes on weaker
companies has been spreading. Analysts said this month's
collapse of Nagasakiya, a medium-sized supermarket chain
operator, highlighted these anxieties. Other analysts,
however, pointed to pressure from the banking sector.

"The introduction of new accounting standards doesn't
really matter in Tomen's case," said Takeshi Kawai,
strategist at IBJ Securities. "It is part of Tokai Bank's
financial reform."  (Financial Times (London)  24-Feb-2000)


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

CHEILJEDANG CORP.: Fined for overseas bonds misuse
DAEWOO CORP.: Fined for overseas bonds misuse
HANJIN SHIPPING: Fined for overseas bonds misuse
HYUNDA ELECTRONICS IND CO.: Fined for overseas bonds misuse
HYUNDAI ENG.& CONSTRUC.CO.: Fined for overseas bonds misuse
SAMSUNG CORP.: Fined for overseas bonds misuse
-----------------------------------------------------------
Six chaebol companies have been fined for misuse of
overseas-issued bonds to mask debt.  The chaebol have been
punished for their long-standing practice of bypassing
financial market regulations to make debt-to-equity ratios
appear lower.

The Financial Supervisory Commission (FSC) yesterday handed
out a total of 4.8 billion won ($4.21 million) in fines to
six chaebol firms and their affiliated securities firms for
illegally selling their overseas-issued bonds in the
domestic market.

Samsung Corp., Hyundai Engineering & Construction Co.,
Hyundai Electronics Ind. Co., Daewoo Corp., Hanjin Shipping
and Cheiljedang Corp. were fined a combined 2.44 billion
won for diversion of overseas-issued convertible bonds
(CBs) and bonds with warrant (BWs) for domestic sales, FSC
officials said. Samsung, Hyundai Engineering, Hyundai
Electronics and Hanjin Shipping were each punished with a
500 million won fine, while Cheiljedang was fined 444
million won. Daewoo Corp., now under debt-rescheduling
accord, was not fined due to its financial difficulties.

Hyundai Securities, Samsung Securities, LG Securities,
Hanwha Securities and Chungang Merchant Bank were also
fined hefty sums of about 500 million won for assisting in
the illegal bond diversions. In addition, ABN Amro, Societe
Generale and four other foreign institutions were reported
to their home governments for their roles in the illegal
acts.

"The six chaebol firms had issued a total of $1.11 billion
in CBs and BWs abroad between January and November in 1999.
But they secretly brought $740 million of them back home
because of a scarcity of buyers in offshore markets," said
an FSC official, noting that they took advantage of the law
allowing locals to invest in foreign bonds.

Hyundai Engineering diverted the largest sums, at $280
million, followed by Daewoo Corp. ($150 million), Samsung
Corp. ($100 million), Hanjin Shipping ($100 million),
Hyundai Electronics ($80 million) and Cheiljedang ($30
million).

Anti-chaebol activists have long accused the leading
conglomerates of abusing their overseas bond issuances for
the purpose of illicit wealth inheritance and defense of
managerial rights. The chaebol issued massively abroad
throughout last year, vowing to attract foreign capital and
cut debt-to-equity ratio. However, much of the overseas
issued bonds were misused as a means of defending the
largest shareholders' management rights and even
transferring wealth to their families. (The Korea Herald
26-Feb-2000)

DAEWOO CORP.: Creditors finalize rehab program at last
------------------------------------------------------
South Korean creditor banks on Monday finalized a much-
touted debt restructuring program for the flagship of the
insolvent Daewoo Group to resurrect its construction and
trading operations.

The program, mapped out by prime creditors including Hanvit
Bank, called for the sepration of Daewoo Corp., which has
served as the group's holding company, into three parts --
construction, trading and management.

"The firm's trading and construction divisions will be
reborn as separate and sound entities by the end of June,"
Im Chul-Jin, a Hanvit official, told AFP. "Its management
section will be defined as a dead company carrying the
burden of 28.4 trillion won for liquidation later."

The program involves debt-equity swaps worth 1.7 trillion
won (1.5 billion dollars), a fresh cash injection of 1.41
trillion won, and a rescheduling of 22 trillion won in
debt, he said.  The program was drawn up six months ago,
but its implementation has been delayed by disputes over
how to handle the firm's total debt estimated at 34
trillion won.

"The new program, which has yet to be endorsed by minor
creditors, will pave the way for creditors to speed up the
rehabilitation of other Daewoo units," Im said.

But Daewoo Corp.'s overseas debt requires further
negotiations with foreign banks, he said.  In December,
foreign creditors agreed to take part in debt buyout plans
for the conglomerate which collapsed last August under some
77 billion dollars in debts.  Under the agreement, foreign
creditors will retrieve some 39 percent of their non-
guaranteed loans worth 4.84 billion dollars in Daewoo Corp.
and three major Daewoo units, in return for giving up their
right to collateral.

Foreign creditors are required to decide by mid-March
whether to accept details of debt rescheduling plans. But
they have yet to decide on whether to roll over the group's
guaranteed debt.  Daewoo Corp.'s rehabilitation has been
the centerpiece of a government drive to settle the
financial debacle involving the conglomerate, once touted
as the country's second largest conglomerate and a
powerhouse of the Asian economic "miracle" of the early
1990s.

The government has placed 12 Daewoo companies under a
painstaking rehabilitation program, with other units put up
for sale or liquidation.  The group has 6.57 billion
dollars of foreign debt, including non-guaranteed
debt of 4.84 billion dollars, 1.3 billion dollars of
guaranteed debt and 430 million dollars of other
liabilities.

Daewoo's liabilities prompted the government to spend
billions of dollars on heading off turbulence in the
country's financial market.  (Agence France Presse  28-Feb-
2000)

DAEWOO CORP.: To be divided into 3 divisions by July
----------------------------------------------------
Daewoo Corp will be split into three divisions -- trading,
construction and other activities -- by the end of June,
Yonhap News Agency said.

According to the report, the trading division will have
assets of 2.2 trln own, with debt of 2.45 trln, comprising
950 bln in operating liabilities and 1.5 trln in borrowing
from the financial institutions.  Construction will have
4.47 trln won in assets, and debts of 4.44 trln include
1.54 trln in operating debt and 2.9 trln owed to
financial institutions.  The other activities division will
have 9.98 bln won worth of assets, and debts of 28.4 trln
won, comprising 3.86 in operating debt and 24.54 trln owed
to institutions.

Yonhap quoted creditors and the Corporate Restructuring
Coordination Committee as saying the plans are expected to
be approved at tomorrow's creditors meeting.  It said some
1.7 trln of the 34.18 trln won Daewoo Corp debt will be
converted into equity, with some 20 trln won to be made
exempt from interest servicing.  At the same time,
creditors will inject 440 bln won and 830 mln usd worth of
fresh capital into the company.

The report said talks on rescheduling Daewoo Corp's foreign
debt are still under way.  Korea First Bank and investment
trust companies are also required to participate in the
debt workout plans for Daewoo, it said.  (AFX News Limited
28-Feb-2000)

DOOWON LIFE INSUR.: FSC revokes license after bankruptcy
--------------------------------------------------------
The Financial Supervisory Commission (FSC) says it has
revoked the business licence of Doowon Life after the
company filed for bankruptcy.

The life insurer is no longer capable of continuing
operations as its debts exceed assets by 296.9 billion won
(US$ 260 million) and all its policies contracted have been
transferred to Korea Life Insurance, the FSC said. Doowon
Life, with no buyers on the horizon, suspended operations
on Dec 1 last year with its business transferred to Korea
Life.  (Asia Pulse  25-Feb-2000)

SSANGYONG MOTOR: Debt-to-equity swap ahead
------------------------------------------
The 22 creditor banks of Ssangyong Motor (KSE: 03620) will
convert 130 billion won (US$ 115 billion) worth of debt to
equity.  Ssansyong notified Tuesday the Korea Stock
Exchange that creditors decided to convert debt into equity
investment through rights offerings.  The conversion will
take place on March 6 and rights offering will be
distributed on March 17.  (Asia Pulse  22-Feb-2000)


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

GOODYEAR PHILIPPINES: Gov't may require market-rate rent
--------------------------------------------------------
The Government wants Goodyear Philippines to pay land rent
at market rates after its 25-year lease under the Laurel-
Langley Agreement expires in May this year.

A top government source told reporters that negotiations
are underway to discuss the possible renewal of Goodyear's
lease on the land it currently occupies along Zapote Road
in Las Pi¤as.  The official said government is looking at
lease rates of at least ten times more than what Goodyear
has been paying since the property was leased to the
company in 1975.

However, the official disclosed that the negotiations will
have to consider the terms of the Laurel-Langley agreement
which gave parity rights to US corporations in 1943. Under
this treaty, US corporations donated the lands they
acquired during the US occupation to the Philippine
government but they also exercised the right to lease them
back at preferential rates.

According to the official, Goodyear has been paying rent on
an escalated basis with no adjustments for current market
rates in the area.  The official said government is
discussing the possible extension of the lease but should
government decide it would approve an extension, the rates
that would be applied would be based on prevailing lease
rates.

The official said there are proposals to use the zonal
rates set by local government units based on land use and
utilization but this would still be way below the market
rate especially in an area like Las Pi¤as which is
currently undergoing rapid urbanization and development.

"If this lease contract is renewed, the market should
dictate what rates should be used," the official said.
"This is what we are negotiating for."

Goodyear, however, is expected to balk at the government's
policy as the company struggles to recover from the Asian
crisis and the onslaught of stiff competition with imported
tires.  The company had asked the government last year to
waive the tariffs on their raw materials in order to
enhance their operations, warning that their local
operations were on the brink of closure because of cut-
throat competition posed by imported tires.

Goodyear claimed it has lost millions of pesos in the last
two years because imported tires were flooding the market
at prices below production costs. The company said their
raw materials cost $100 for each tire, but they were forced
to compete with imported tires coming from China,
Indonesia, Thailand and Japan which were being sold at only
$70 each.

Tire manufacturers said the tariffs on their raw materials
ranged from three percent to 15 percent and this made them
uncompetitive against importers of finished products which
were levied 15 percent for ASEAN sources and 20 percent for
non-ASEAN countries.  Goodyear is now 89 percent owned by
its US-based parent firm, Goodyear Tire & Rubber Co. which
increased its holdings from 69 percent. The rest is owned
by the Philippine National Oil Co.

GTRC infused $50 million into Goodyear Philippines,
representing the equivalent of an outstanding loan made in
conjunction with the acquisition of a plant in Marikina in
1996 from the Sime Darby Co.  Goodyear is the largest
manufacturer of tires in the country, and employs more than
800 associates in plants in Las Pi¤as and Marikina. (The
Philippine Star  28-Feb-2000)

ONGPIN GROUP: APC files P150M suit against it
---------------------------------------------
APC Group Inc. and its main subsidiary, Philippine Global
Communications Inc., has filed a damage suit against the
group led by businessman Roberto Ongpin for allegedly
stealing Philcom's Internet business in favor of listed
firm PhilWeb.Com Inc.

APC Group said in a complaint filed with the Securities and
Exchange Commission that the Ongpin group "illegally
appropriated" for PhilWeb the corporate opportunities and
business that belonged to Philcom's Internet subsidiary,
Philcom Interactive Systems Inc.

APC Group asked the Ongpin group to pay actual and
exemplary damages amounting to at least P150 million,
saying any gains or profits of PhilWeb arising from the
interactive business rightfully belong to Philcom and
Philcom Interactive.

The complaint said as early as June 1999, Philcom, under
the leadership of Ongpin and former Philcom president Alex
Villamar, was already developing a complete and integrated
business plan geared towards taking advantage of new
technologies and advances in e-commerce and Internet-based
businesses.

The business plan provided for transforming Philcom
Interactive into a fully integrated Internet company
offering high bandwidth connections for audio, video and
data applications, at a speed faster than those provided by
current Internet service providers.

APC Group claimed in the complaint that Ongpin, Villamar
and other high-ranking Philcom officials allied with Ongpin
usurped the business plan of Philcom Interactive and
transferred the knowledge and potential joint venture deals
in favor of PhilWeb.Com which Ongpin formed this year.

Ongpin allegedly pirated as much as 40 key personnel from
Philcom and Philcom Interactive to form PhilWeb.Com,
formerly known as South Seas Natural Resources Inc., an
inactively traded listed firm at the Philippine Stock
Exchange.

"The facts . . . have established that Ongpin, widely known
for financial and technical savvy, conceived and engineered
the great treachery and betrayal of Philcom and Philcom
Interactive with the active participation and involvement
of Villamar and others," Ongpin said. (Philippine Daily
Inquirer  28-Feb-2000)

PHILIPPINE NAT.BANK: Needs $1B to compete,comply with rules
-----------------------------------------------------------
Semiprivate Philippine National Bank (PNB) should have a
capital base of at least $1 billion if it wants to remain
competitive and comply with regulatory requirements, the
bank's former president said.

Benjamin P. Palma Gil, now PNB director, said the bank is
under regulatory and competitive pressure to jack up its
capital base. Based on fourth-quarter figures, PNB is the
fourth-biggest bank in the industry with 23.956 billion
Philippine pesos (US$587.4 million at PhP40.779:US$1) in
capital.

"PNB should strive for a capital base of $1 billion (or
about PhP40 billion). Metrobank is not sitting on its butt;
BPI (Bank of the Philippine Islands) is not sitting on its
butt. PNB has to move as quickly as possible to get the
capital needed to enable it to compete," Mr. Palma Gil
said.

Mr. Palma Gil said the regulatory pressure stems from the
Bangko Sentral (Central Bank of the Phils.) rule requiring
banks to maintain a minimum 10% capital adequacy ratio
(CAR). The ratio reflects a bank's protection against
operating losses. It is computed by dividing the capital
with risk assets, which include loans, marketable
securities and other assets which may fall in value.

As a general rule, the higher the CAR, the more sound a
bank is. The Bank for International Settlements (BIS), the
central banks' central bank, prescribes a lower capital
adequacy ratio of 8%.

"Let us assume (the bank's CAR is) exactly at 10%. What
will happen is you cannot grow the risk asset portfolio.
That means you cannot grant new loans. The moment you do,
you will get into a capital adequacy problem... You will
need more capital," Mr. Palma Gil explained.

"If the minimum capital adequacy ratio is 10%, (PNB) has to
strive for more than that to allow for growth. Once you
have that growth, you must have the internal and external
... resources of raising additional capital. Internal
sources come from profit but if profitability is still
poor, then you have to look for it from the outside," he
added.

In this case, "true capital" has to come in and not
"borrowed capital," which does not qualify under tier 1, he
stressed.  Analysts have also repeatedly stressed the need
for a capital boost in light of PNB's deteriorating loan
portfolio. An increasing level of non-performing loans
could bring down PNB's CAR. NPLs are loans which have
remained unpaid after maturity.

As of the fourth quarter last year, PNB reported an NPL
ratio of 29%, but industry sources said the level could be
as high as 40% of total loans. The average NPL level of
commercial banks as of December was 12.34%.  Mr. Palma Gil
said it is up to the bank's management, now headed by
former Bangko Sentral deputy governor Feliciano L. Miranda,
Jr., to decide whether PNB should grow or become a non-
competitor.

"We (the board) have discussed the need to raise capital.
The board will rely on management ... to make a decision of
deciding whether (or not) it would stay as is," he said.

Mr. Palma Gil added a merger with Lucio Tan-owned Allied
Banking Corp. would be beneficial to PNB if Allied Bank's
CAR is above 10%.

"If Allied Bank's capital adequacy is, let's say 20%, there
is surplus capital. A merger will mean the surplus capital
can be used. If it's 10%, the moment you merge, the CAR is
still 10%," he said.

Meanwhile, Mr. Palma Gil said the audit on PNB done by
auditing firm PriceWaterhouseCoopers was based on the
international accounting standard.

"I have seen the study but I cannot talk about it... That
study is December 1998. It is supposed to be part of the
privatization process... (But) Using December 1998 figures
to try and sell a stock in the year 2000 means you are
relying on old data. Money is wasted," he said.

He said the audit should have been done in September last
year.  If the purpose of the audit is to determine the true
value of PNB, Mr. Palma Gil said the results must be
disclosed to the public because of PNB's status as a listed
company.  However, if the purpose of the audit is for
regulation, then the findings should be limited to the
Bangko Sentral and should not be publicly disclosed.

"If you disclose it to the government, the government is
just a shareholder. If you disclose to one, you disclose to
all. Otherwise, you do not disclose to anybody at all
because of the issue on insider trading," Mr. Palma Gil
added. (Business World  28-Feb-2000)

PILIPINAS SHELL PETROLEUM CORP.: Cuts output, losses still
----------------------------------------------------------
Due to the continued weak demand for petroleum products,
Pilipinas Shell Petroleum Corp. (Shell) has decided to
reduce its production level by 12 percent to 110,000
barrels of oil per day (BOPD) from 125,000 in the last
quarter of 1999.

Shell chief executive Oscar Reyes said, however that they
will continue to meet their marketing requirements even as
they realized negative refining costs.  The Shell chief
executive noted a decline in the demand for petroleum
products as he expressed concern over the increasing price
of crude oil from the foreign spot market.

"We see the fuel oil demand contracting, creating a very
competitive market in the near future," he added.

The Shell refinery has a maximum capacity of 155,000 BOPD,
the second highest among the three major refiners in the
country. Petron Corp. and Caltex Philippines Inc. operate
the two other refineries with a combined capacity of over
300,000 BOPD.  Meanwhile, oil executives expressed concern
over the increasing cost of imported crude oil, reporting
losses of more than P1 per liter in local pump prices. (The
Philippine Star  28-Feb-2000)

UNIWIDE GROUP: Moves to get back Ecology Bank
---------------------------------------------
The Gow family's Uniwide group is planning to engage the
Equitable banking group in a legal battle to reclaim the
ownership of Ecology Bank, well-placed industry sources
disclosed to the INQUIRER.

The cash-strapped warehouse group, which found its white
knight in leading French retailer Casino group, believed
that with its rehabilitation blueprint now in place, it
stood a better chance of getting a favorable deal for
Ecology Bank, the sources said.

"They were forced to give up Ecology only because of tight
financial conditions. And they think they didn't get a fair
pricing for it," one of the sources said.

Although Ecology Bank, which has a network of 30 branches,
was pledged to Equitable Bank to offset some of the Uniwide
group's debts two years ago, the thrift bank was formally
absorbed and annexed by the bank as its subsidiary only in
September 1999.

In a separate interview, an Equitable Bank official said it
was Uniwide which had offered Ecology Bank to Equitable to
offset some of its debts more than two years ago. The
transaction was consummated only recently because the
accounting process for the debt offsetting took sometime to
complete.

The Uniwide group, for its part, was not happy with the
valuation level for the asset transfer, the sources said.
They said the group has been looking for legal means to
nullify the transfer of Ecology Bank to Equitable and
reclaim the thrift bank.  The sources did not divulge the
valuation used by Equitable on Ecology Bank.

Under its plan, Uniwide is now planning to look for a new
investor to buy Ecology Bank at a better price instead of
giving it up to Equitable to offset the debts. Proceeds of
the sale, according to the plan, will be used to pay part
of Uniwide's debts to Equitable.

The sources said the Uniwide group had already instructed
its lawyers to prepare the legal petition for the
nullification of the transfer although it has yet to
formally bring the case to court.  They said that with the
emerging deal with the Casino group of France, the Uniwide
group would have more time to focus on the rationalization
of its other assets. But since Ecology Bank is not part of
the deal with Casino, the sources said the Uniwide group
would separately scout for a new investor in the bank.

The Casino group has recently entered into an agreement
with the cash-strapped Uniwide Holdings Inc. for the
acquisition of the controlling stake in its P4-billion
retail operations. The agreement called for the
restructuring of Uniwide's warehouse and related assets and
their transfer to the French group free of liabilities.

The operations to be purchased include 10 supermarkets,
eight of which are located in Metro Manila, with an average
selling area of 10,000 square meters; one distribution
center and some parcels of land.  As required by the
rehabilitation group for Uniwide, the Casino group agreed
to infuse P1 billion in fresh equity for store
refurbishment and improvements in the first two years.

After the restructuring of the group's over P10 billion
worth of debts, the group is projecting P12 billion in
revenues from the 10 stores, approximating the 1997 level
of P14.6 billion, considered as the Uniwide group's last
year of normal operations.  The Uniwide group filed for a
suspension of payment with the SEC on June 26, 1999 when it
failed to service its maturing debts. (Philippine Daily
Inquirer  28-Feb-2000)


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

CLOB INT'L: What if investors reject both Clob deals?
-----------------------------------------------------
Holders of Malaysian shares formerly traded on Singapore's
over-the-counter market Clob International who reject the
two options under a deal reached between the two countries'
bourses may have to claim their shares or proceeds from the
Malaysian finance ministry, sources say.

Late last Friday, the Kuala Lumpur Stock Exchange (KLSE)
and the Singapore Exchange (SGX) issued a joint statement
to resolve the long-drawn Clob saga. But the statement was
silent on the fate of investors who reject either option.

Malaysian sources said the authorised nominee status of
Central Depository (Pte) Ltd (CDP) -- the joint account of
the 172,000 Clob investors owning almost 20 billion
Malaysian ringgit (S$9 billion) worth of Malaysian shares -
- will be extended when it expires on June 30 to
accommodate the new schemes. This means the status will
have to remain for another 42 months from March 31 -- the
completion date of the second option.

When the joint omnibus account lapses in late 2003, shares
that remain in the CDP will be placed under the custody of
Malaysia's finance ministry. Under Malaysian laws, the
minister, who is currently Daim Zainuddin, could dispose of
the shares if unclaimed after a certain period. Investors
will then have to apply to the ministry to recover the
shares or the proceeds.

KLSE officials declined to comment, citing its promise to
stick to the press release which stipulated that any
statement by either party that varies from the joint
statement is not allowed and therefore invalid.

Under the new plan, investors will be given two choices:
Pay a 1.5 per cent fee to Akbar Khan's Effective Capital to
stagger the release of the shares over 16 months -- three
months to open trading accounts followed by 13 months to
release the shares in weekly batches. The fee is based on
the closing market prices on Feb 15. The offer closes on
March 31; or

Pay a one per cent fee to KLSE's Securities Clearing
Automated Network Services (Scans) to release the shares
within 42 months from March 31. Shares will be released in
batches over nine months after a lock-up period of 33
months. The fee is based on the average securities prices
over the last five trading days of the 31st month.
Investors can sign up for the option within the first 32
months.

It's still unclear if any investor would reject both
options. Analysts said most investors would have no choice
but to accept the Khan solution -- the sole private sector
offer to have complied with Malaysian securities laws.

David Gerald, president of the Singapore Investors
Association (Singapore) (SIAS), said: "Obviously, Scheme B
is designed to discourage you from rejecting Scheme A." The
new pact -- signed by KLSE executive chairman Azlan Hashim
and SGX president Lim Choo Peng in Kuala Lumpur last Friday
-- also seems to have excluded the entry of other
contenders for the Clob shares.

However, some of the six private sector contenders are
still crossing their fingers.  A spokesman for Bintang
Melewar said the company was still in discussions with
relevant parties. "We believe that Clob investors should
have choice," he said.

Another interested party -- Singapore businessman Andrew
Chuah -- said he was "going ahead" with his sketchy plan to
use an unnamed Malaysian-listed company to issue an unknown
amount of new shares to buy the Clob shares. To date, he
has not received official blessing from authorities on both
sides of the Causeway.

More importantly, SIAS, which represents over 50,000 Clob
investors, has come up to support the new legal pact by the
two exchanges.  "SIAS is of the view that the comprehensive
solution now reached by the two exchanges does address the
needs of most Clob investors," Mr Gerald said in a
statement over the weekend. (Singapore Business Times  28-
Feb-2000)


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T H A I L A N D
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DUNSIT THANI PCL: Subsidiary sued by lender, it tells SET
---------------------------------------------------------
Dusit Thani PCL has invested in The Royal Princess PCL
79.65% of the issued and paid up capital (600 Million THB)
and The Royal Princess PCL then has invested into The Korat
Thani Co.,Ltd.68% of capital registered (150 Million THB).

On December 23, 1999, The Royal Princess PCL received the
Plaint from The Southern Bangkok Court dated 7 December
1999. This plaint was submitted to the Court by National
Finance PCL (the "Plaintiff"), the Plaintiff sued the Korat
Thani as the first Defendant and The Royal Princess PCL as
the second Defendant in the accuses of default of loan
performance, enforcement of mortgage and Suretyship. The
Plaintiff has claimed for damage about 461,166,311.67 THB
(Four Hundred Sixty-one Million One Hundred Sixty-six
Thousand Three Hundred Eleven and Sixty-seven Stang).

To date, this case is in the Court proceeding and the Court
fixed the first day of taking evidence on March 8, 2000.
(Stock Exchange of Thailand  28-Feb-2000)

LIU FAMILY LTD PARTNERSHIP: Revises restructure strategy
--------------------------------------------------------
Liu Family Ltd Partnership, a medium-sized fashion-bag
maker, plans to restructure its Bt30-million debt within
five years, following revision of its marketing strategy
and management policy.

The company was established two decades ago, beginning with
the production of school bags. Three years later, it turned
to fashion bags and began exporting in 1990, initially to
Switzerland.  Liu Family 's major products now include
children's bags, backpacks and fashion bags made from both
fabrics and synthetics.  The company is also licensed to
produce bags bearing Mickey Mouse and Teletubbies cartoon
character logos, and some Japanese brands.

Yingkiat Liu, 48, Liu Family director, said the company
planned to boost sales by strengthening marketing and
exports. As a result, the increased income would help it
achieve its debt repayment plan.  He said the company's
debt burden resulted from its effort to establish a new
production plant in 1993. At the same time, Yingkiat formed
a joint venture with friends to establish Liu De Sac Co
Ltd.

The company borrowed between Bt30 million and Bt40 million
from commercial banks.  The new plant increased the
company's production capacity by 50 per cent, but
production costs doubled.

"I accepted that the investment was miscalculated. The
company expanded too fast, when we were not ready,"
Yingkiat said.

The company posted losses of Bt10 million a year for three
years after it was established.  It was also forced to
borrow from the informal market at interest rates almost
two times higher than commercial banks.  Also, because of a
lack of marketing experience, the company's attempts to
build exports were unsuccessful.  To survive, it sold off
non-essential assets including land and some small retail
outlets. Some of its loans were repaid and others rolled
over.

"The company was nearly closed down due to unpaid debts.
Somebody suggested I sell the factory, but I thought there
must be a better solution," Yingkiat said.

The company began revising administration and financial
plans, and trimming costs and waste. It also improved its
marketing for both domestic and export markets. It also
focused on quality and product development to retain sales
revenue.

Yingkiat bought back stakes from his partners to strengthen
his management. Liu De Sac is now wholly owned by Liu
Family and the company now has stronger marketing and
financial plans.  Liu Family will reduce its made-to-order
production from 40 per cent to 20 per cent within the next
two years. It will also concentrate more on product
development and manufacturing its own designs.

Liu Family's total sales reached between Bt40 million and
Bt50 million last year. The domestic market consumed 70 per
cent of total sales.  The company's strong points were its
designs, service and quality. These qualities maintained
its competitive edge, Yingkiat said.

He said customers were satisfied with the company's after-
sale services, such as warrantees.  Yingkiat is also the
company's art director and takes responsibility for all
design concepts. The company launches at least two
collections annually.

"We don't want to become the biggest exporter or
manufacturer. We want to be the best producer in terms of
quality," he said.

He said the company hoped to reach number one in the
Southeast Asian market in children's and fashion bags in
terms of quality and strong design character.  The company,
in co-operation with Du Pont (Thailand) Co Ltd, plans to
launch new products in April or May this year.

The products will be made from the Du Pont-developed nylon
"cordura plus"; a light-weight, easy-to-clean fabric that
is up to 10 times stronger than ordinary nylon.  The
company is also the sole manufacturer licensed to produce
bags bearing the Club Med name.

Liu Family distributes these products to Club Meds in the
Southeast Asia. The company takes responsibility for design
and manufacturing.  Yingkiat said he concentrated on market
trends rather than serving short-term market demand.
For instance, the company was able to produce a fashion bag
similar to Belgium's well-known Kipling brand, but refused.

"We look for long-term business rather than taking short-
term benefits. Manufacturers taking short-term benefits
will disappear from the market when newcomers arrive," he
said.

The company was seeing lots of fakes of its brands appear
on market stalls, resulting in high losses.  To protect
against fakes, Liu Family has registered its trademarks in
Thailand and its major export markets of Singapore, France,
Indonesia, the Philippines, Malaysia, Japan and the US.
(The Nation  27-Feb-2000)

SUPALAI PLC: Reports signing restructure term sheet to SET
----------------------------------------------------------
Supalai Public Company Limited, through Mrs. Ajchara
Tangmatitham, Executive Vice President, reports to the
Stock Exchange of Thailand as follows:  Reference is made
to the Debtor Agreement Debt Restructuring Process under
CDRAC and Bank of Thailand dated 21 June 1999.

On 24 February 2000, all creditors under CDRAC had voted
and approved the proposed restructuring plan and had signed
off term sheet at 3.00 p.m.-4.30 p.m. at Bank of Thailand,
except 2 creditors had requested to postpone to sign a week
later.

The proposed restructuring plan is meant for the principal
outstanding Loan to the Financial Institution with the
aggregate amount of 6,096 million Baht. It consists of 10
creditors under CDRAC, representing 77% of the principal
amount, a creditors not is CDRAC representing 23% of the
principal amount. The major lead institution is Siam
Commercial Bank.

A combination of several schemes was used to restructure
each creditor's debt, i.e, haircut of accrual interest,
interest deferral, haircut in principal, assets setoff,
Debt-equity swap, conversion to 7-year zero coupon bond.
The bilateral arrangement between Supalai and the creditors
is applied in the restructuring scheme. Each creditor's
collateral status will determine their own applicable
scheme, i.e, on-going project or temporary ceased project
or completed project or land bank.

As a result of the approval of the plan on 24 Feb. 200, the
company debt amount of 4,700 million Baht was successfully
restructured to allow the company to be able to reduce debt
by 25 %, convert, 14 % of debt to be unsecured zero coupon
bond at 7 year maturity. which save interest burden.
Besides, the current projects will be fully supported to
continue as usual course of business.

However there are 1,496 Baht million debt which belong to
non-CDRAC creditors. The company is currently negotiating
with them.  (Stock Exchange of Thailand  28-Feb-2000)

THAI MILITARY BANK: Recapitalization target by end of 1Q
--------------------------------------------------------
Finance Minister Tarrin Nimmanahaeminda said the Ministry
of Finance is working on a package to assist the
recapitalisation efforts of the Thai Military Bank Plc.

Tarrin told AFX-ASIA and other invited journalists the Thai
Military Bank recapitalisation package will be in
accordance with the government's Tier-1 capital injection
scheme.

"The ministry will speed up the process of recapitalisation
and will try to complete it by the first quarter of this
year as initially planned," he said.

Tarrin said he sees no difficulty in the bank placing
shares with foreign investors.  "We believe that Thai
Military Bank's recapitalisation will succeed in
much the same way Siam Commercial Bank resolved its
situation. However, whatever happens, Thai Military Bank
will retain the status of a Thai bank," he said. Tarrin
declined to disclose further details.

Tarrin said the ministry is monitoring closely and working
with Krung Thai Bank Plc as it trys to restructrure debt
and establish an Asset Management Company.

"The ministry is now working with Krung Thai Bank and I
expect we can reach a conclusion on setting up Krung Thai
Bank's AMC soon," he said. "The ministry needs to consider
Krung Thai Bank's situation carefully because the
establishment of an AMC involves both the management
structure of the bank and management structure of its AMC."

"It also involves financing, systems and manpower," Tarrin
said. "The establishment of Krung Thai Bank's AMC should
aim at maximum recovery (of debt) and minimum cost to the
public."

He said Krung Thai Bank has been a key institution in
assisting the government solve the problems in the
financial sector by consolidating assets of First Bangkok
City Bank.  "Krung Thai Bank is helpful in preventing any
disruption in the transition of FBCB's consolidation, thus,
we we need to find the right way to compensate the bank,"
he said.

He added that 84 pct of FBCB's assets are NPLs but not all
of these NPLs would be necessarily transfered to Krung Thai
Bank's AMC.  "The salvageable NPLs need not be transfered
to Krung Thai Bank's AMC," Tarrin said.  (AFX News Limited
24-Feb-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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