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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

           Friday, March 3, 2000, Vol. 3, No. 44

                                  Headlines


* A U S T R A L I A *

GREENCHIP EMERGING GROWTH LTD: Reports on lawsuit to ASX
LION NATHAN LIMITED: Taps US debt market for US$200 million
MAYNE NICKLESS: Profit,dividend dips; takeover target?
SIDDONS RAMSET LTD: Takover report to ASX


* C H I N A  &  H O N G  K O N G *

GUANGNAN HOLDINGS LTD: Notice to file claims
GDE GROUP: Notice to file claims
NAM YUE GROUP: Notice to file claims
WAH NAM GROUP LTD: Reports outstanding business to HKSE


* I N D O N E S I A *

PT KASOGI INT'L: Second rights issue planned in rehab


* J A P A N *

MITSUBISHI HEAVY INDUS.: To book extraordinary losses
NIPPON TEL.& TEL.: To book extraordinary losses
NISSAN MOTOR CO.: To book extraordinary losses
SOGO CO: Shares dive 9% on report of store closure
TOHOKU ELEC.POWER CO.: To book extraordinary losses
TOKYO ELEC.POWER CO.: To book extraordinary losses
TOYOTA MOTOR CO.: To book extraordinary losses


* K O R E A *

HYUNDAI GROUP: Unnerved by weak share prices


* M A L A Y S I A *

DIVERSIFIED RESOURCES: Shares fall on trading resumption
GADEK: Shares fall on trading resumption
GADEK CAPITAL: Shares fall on trading resumption
HICOM GROUP: Shares fall on trading resumption
MOBIKOM SDN BHD: Three more years of losses forecast
TELEKOM: Shares dip on weak profits


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

METRO RAIL TRANSIT CORP.: Gov't to assume P2.4B in loans
NATIONAL STEEL CORP.: Gov't may have contributed to failure
PHILIPPINE NAT.BANK: To declare PhP7-B operating losses
PILIPINO TEL.CORP.: Hopes to finalize rehab pact this month


* T H A I L A N D *

BANK OF AYUDHYA: Bank stocks slide
KRUNG THAI BANK: Bank stocks slide
NAKHON SAWAN INDUS.CO.: Large sugar mills to help small one
NAWARAT PATTANAKAN: Hearing on rehab plan Mar. 20
ONPA INT'L PLC: Seeks listing on Nasdaq, after share swap
THAI AMARIT BREWERY: PricewaterhouseCoopers plan adviser
THAI FARMERS BANK: Bank stocks slide
THAI PETRO.INDUS.: Claims creditor has conflict of interest
THAI PETRO.INDUS.: Prospects remain uncertain
THAI PETRO.INDUSTRY: Creditor banks plan civil suit
THAI TEL.& TEL.: Restructures debts of Bt38 billion


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

GREENCHIP EMERGING GROWTH LTD: Reports on lawsuit to ASX
--------------------------------------------------------
Greenchip Emerging Growth Limited (The Company), through
M.Garbutt, Company Secretary,  refers to its announcement
to the ASX dated 17 December 1999 regarding proceedings
brought against the Company and its Investment Manager by
TAL Wireless Network Inc in the United States Bankruptcy
Court in San Jose California.

The Company has taken legal advice and believes that the
claim has little basis under US law and is unlikely to
succeed. Inquiries made on behalf of the Company suggest
that the claim is of a speculative nature.

The Company and the Investment Manager have today,
Australian time, filed in the United States Bankruptcy
Court a motion to dismiss the proceeding on the grounds
that the US Court has no jurisdiction over the dispute and
the US is not the proper forum for the litigation. The
motion is likely to be determined in the next few months.
(Australia Stock Exchange  01-March-2000)

LION NATHAN LIMITED: Taps US debt market for US$200 million
-----------------------------------------------------------
Lion Nathan confirmed today that the company has raised
US$200 million (approx NZ$412 million) in the United States
traditional private placement debt market.

The funding is an integral part of Lion Nathan's strategy
of actively managing its capital base and will result in
the lengthening of its debt maturity profile and the
broadening of its funding base.

Lion Nathan Finance (Australia) Pty Limited issued US$200
million of Senior Notes at an issue spread of 190 basis
points over the 10-year US Treasury bond to 13 investors.
The Issue has an average life of 10 years with final
maturity on 28 February, 2012. Moodys have rated the Issue
Baa2. The proceeds have swapped into Australian dollars.
The long-term funds will replace existing short-term
facilities with banks and extend the average maturity of
Lion's debt from 3 years to 6 years.

Lion Nathan Treasurer, Alison Gerry, said "Raising money in
the United States allows Lion to diversify into longer-term
borrowings and broaden its funding base. The attractive
spread over US Treasury bond reflects the confidence the
markets has in Lion Nathan's financial position and the
ability of the business to generate strong cash flows going
forward."

The Issue, which was arranged by CS First Boston was
substantially oversubscribed.  (Australia Stock Exchange
01-March-2000)

MAYNE NICKLESS: Profit,dividend dips; takeover target?
------------------------------------------------------
Mayne Nickless has cut its interim dividend after a fall in
earnings from its hospitals and Armaguard business dragged
results down.

The managing director, Mr Bob Dalziel, claimed, however,
that the figures suggested the company hit its low point in
the second half of last financial year and had begun
turning around.

"Overall the underlying trend of all the businesses is in
the right direction. The challenge for us is in achieving
margin growth," Mr Dalziel said.

The sharemarket appeared to be only half-convinced of that
argument, putting 5.5 cents on to its shares for a close of
$3.215, after touching a high of $3.38 in afternoon
trading.  Market watchers said the price moves might have
had more to do with speculation that Mayne was vulnerable
to takeover - with rumors of a $3.80-a-share offer in the
wind - than the results.

Mayne's first half profit, for the six months to 2January,
was down 22 per cent to $46.9 million, after tax but before
abnormals.  The corresponding half of last year included a
massive abnormal profit of $450 million from selling its
stake in Cable Wireless Optus. This half, the only abnormal
was a $4.9 million after-tax cost for Y2K compliance.

The shrunken profit was earned on a 10 per cent increase in
revenue to $1.54 billion, with $111 million of that rise
reflecting the effect of acquisitions.  Shareholders will
see their dividends fall from 15 cents a share to 12 cents
a share, franked to 40 per cent, and payable on 31 March.

With earnings per share down from 17.4 cents to 13.8 cents,
the payout ratio is virtually unmoved at 87 per cent.
Mayne's chief financial officer, Mr Steve Somogyi, said the
long-term aim was to edge the payout ratio down to 75 per
cent.  Mayne also revealed it had tidied up more of its
structure, finally closing the sale of its Loomis Armored
Car Service in Canada for $C16 million ($A18.2 million) to
British group Securicor.

It also bought out the 25 per cent stake in MPG Logistics
of the Melbourne businessman Mr Peter Gunn for $32 million
in cash, on a deferred basis through until 2002, and $30
million in shares.  Mr Gunn will take 7.5 million Mayne
shares, at a nominal issue price of $4 each, or 25 per cent
above the current market, and has agreed to hold them in
escrow for five years.

Although Mr Gunn will yield the chief executive role at MPG
to Mr Robert Atkins, he will take on a broader strategic
advisory role for all of Mayne's logistics operations.
The MPG business produced the best performance of any of
Mayne's divisions in the half, earnings before interest and
tax rising 61 per cent to $14.3 million in the period.

In Armaguard, once the dominant contributor to Mayne, EBIT
was 26 per cent down at $14.7 million. In the UK Express
business, profit was 4 per cent higher on $15.4 million
after translating into Australian dollars, and the residual
Loomis Courier in Canada achieved a 19 per cent rise to
$7.6 million.

In the hospitals business, which generates about a third of
Mayne's total revenue, EBIT dropped 18 per cent to $30.9
million, but was significantly up on the second half
performance of last financial year.  In the business of
medical diagnostics, which takes in pathology and scanning,
EBIT continued its upward trend, gaining 22 percent to
$16.7 million. (The Age  02-March-2000)

SIDDONS RAMSET LTD: Takover report to ASX
-----------------------------------------
As at 02/03/2000, ITW Holdings Proprietary has become
entitled to an additional 11,231 ordinary shares in Siddons
Ramset Limited at a consideration of $5.95 per each share
in the Company.ITW Holdings Proprietary has ceased to be
entitled to 6,193 ordinary shares in Siddons Ramset
Limited. ITW Holdings Proprietary has a total entitlement
of 2,346,011 ordinary shares in Siddons Ramset Limited.
(Australia Stock Exchange  02-March-2000)


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

GUANGNAN HOLDINGS LTD: Notice to file claims
GDE GROUP: Notice to file claims
NAM YUE GROUP: Notice to file claims
--------------------------------------------
The Board of Guangnan (Holdings) Limited (Incorporated in
Hong Kong with limited liability), through Kang Dian,
Chairman, announces that the boards of GDE and Nam Yue have
jointly given the Notice in the local press today and will
be given again in the next few days asking all persons
having a claim against a member of the GDE Group, of which
the Group is also a member, and/or Nam Yue Group who have
not already submitted a claim to the Claims Assessor should
inform the Claims Assessor at the address set out therein.
The Notice will also be published in the press in Macau and
PRC in the next few days.

The GDE Group and Nam Yue Group have been undergoing a
Restructuring since December 1998 and a claims assessment
process is being established in connection with the
Restructuring. The Board wishes to clarify that the Notice
is given to facilitate the implementation of the process
and the completion of the Restructuring as announced by the
Company on 16th December, 1999.

Persons who continued to supply goods and/or services to
the Hong Kong and Guangzhou supermarket, fresh and live
food stuffs business of the Company and its subsidiaries
and who have received a letter dated 27th February, 2000 in
relation to the Notice do not need to notify the Claims
Assessor in respect of claims arising from the supply of
goods and/or services as their position is already known.

The Board also wishes to inform investors that the Company
is continuing and operating its business as usual and all
business and trading arrangements currently carrying out by
the Company will be continued on the present terms.  (Hong
Kong Stock Exchange  02-March-2000)

WAH NAM GROUP LTD: Reports outstanding business to HKSE
-------------------------------------------------------
The Directors of Wah Nam Group Limited (Incorporated in
Hong Kong with limited liability), through Chan Kwok Choi
Matthew Executive Director, report the matters set out
below to the Hong Kong Stock Exchange:

1. Payment to Satisfy the HK$6 Million Order:  With
reference to the announcement dated 16th February, 2000, on
18th February, 2000, the Company borrowed from Pioneer
Dragon Limited, an independent third party unconnected with
any of the directors, chief executives and substantial
shareholders of the Company or its subsidiaries or their
respective associates (within the meaning of the Listing
Rules), a loan of HK$6 million and on 21st February, 2000,
the Company paid the sum of HK$6 million and interest
thereon to satisfy fully the court order granted on 17th
December, 1999 against the Company. Thereupon, the seizure
of the Company's office furniture and equipments on 27th
January, 2000 in  enforcement of the HK$6 Million Order was
withdrawn completely.

The Company is appealing against the court order also
granted on 17th December, 1999 which required the Company
to pay HK$24 million and interest thereon into court, which
(save as to HK$1.25 million) is still outstanding.

As disclosed in the announcement dated 10th February, 2000
a petition was filled on 10th February, 2000 for the
winding up of the Company on the ground of the Company's
inability to pay two HK$15 million convertible notes which
were the subject matter of the HK$6 Million Order and the
HK$24 Million Order. The Company will contest the 1st
Winding Up Action on the ground, inter alia, that the
subject matter of the HK$24 Million Order is under serious
legal disputes.

2. Placing of 60 Million New Shares: On 24th February,
2000, the Company and Pioneer Dragon have entered into a
subscription agreement, whereby Pioneer Dragon has
conditionally agreed to subscribe for 60 million new shares
of HK$0.10 each in the Company at HK$0.10 per Share. The
subscription price represent a 15.97% discount to the
closing price of HK$0.119 per Share as quoted on the Stock
Exchange on 18th February, 2000 and a premium of about
5.93% to the average closing price of HK$0.0944 per Share
as quoted on the Stock Exchange for the ten trading days up
to and including 18th February, 2000. The PD Subscription
is conditional upon the Listing Committee of the Stock
Exchange granting listing of and permission to deal in the
PD New Shares and the Winding-up Actions having been
terminated or the allotment and issue of the PD New Shares
having been validated by the court.

The Company will apply for the listing of the PD New Shares
and the court validation order. Pioneer Dragon presently
holds no Share, after the PD Subscription, it will hold
approximately 3.08% of the total issued share capital of
the Company as enlarged by the PD Subscription. Net
proceeds from PD Subscription are estimated to be
HK$5,950,000 which will be applied for repayment of the
Pioneer Dragon Loan.

3. 2nd Winding-up Action:  With reference to the
announcement dated 26th January, 2000, Companies (Winding-
up) No. 166 of 2000 was instituted on behalf of HCK China
Investments Limited and Investment Austasia Limited on 23rd
February, 2000 for the winding up of the Company on the
grounds that the Company is unable to pay its debts due to
(i) HCK in the amount of A$4,000,000 (equivalent to
HK$19,080,000) and interest of A$240,000 (equivalent to
HK$1,144,800) and (ii) IAL in the amount of A$3,350,000
(equivalent to HK$15,979,500) and interest of A$201,000
(equivalent to HK$958,770). The HCK Debts and the IAL Debts
related to 8 promissory notes issued by the Company on 15th
September, 1998 on completion of the acquisition of Wah Nam
Infrastructure Investment Limited and IAL HK Limited and
the disposal of the 50% interest in IAL by the Company.
There have been a series of disputes relating to the
completion of the Acquisition and the Disposal. The Company
has been contesting its liabilities under the Promissory
Notes and will defend the 2nd Winding-up Action on the
ground, inter alia, that the HCK Debts and the IAL Debts
are subject matter of serious legal disputes.

4. Placing of up to 150 Million Existing Shares and
Subscription for New Shares:  On 28th February, 2000, Chim
Hiu Fei, a substantial shareholder of the Company and a
brother of Chim Hiu Tung who is a Director of the Company,
has agreed to place through Wah Hing Securities Limited a
total of 100 million existing shares of HK$0.10 each in the
Company at a price of HK$0.10 per Share. The Vendor has
also conditionally agreed, on completion of the Placing, to
subscribe for a total of 100 million new Shares at HK$0.10
per Share. The Vendor and the Company have also granted the
Placing Agent an option exercisable within 5 working days
from the date of the Placing Agreement to increase the
total number of the Placing Shares by 50 million Shares.
The Vendor presently holds 200 million Shares representing
10.59% of the existing total issued share capital of the
Company, after the Placing and the Subscription its
shareholding will be reduced to 10.06% of the total issued
share capital of the Company as enlarged by the
Subscription, and (if the Option is exercised) after the
Optional Placing and the Optional Subscription, its
shareholdings will be reduced to 9.81% of the total issued
share capital of the Company as enlarged by the
Subscription and the Optional Subscription.

The Placing Agent which is a company controlled by Mr.
William Chan (an ex-director of the Company who resigned on
31st December, 1999) will receive a commission equal to 3%
of the Placing Price. The arrangement constitute a
connected transaction for the Company within the meaning of
the Listing Rules, but under paragraph 14.24 (5) of the
Listing Rules, it is not subject to any disclosure or
shareholder approval requirements.

Net proceeds from the Subscription and the Optional
Subscription are estimated to be approximately HK$9,700,000
and HK$4,850,000 respectively which will be applied for
compliance with the HK$24 Million Order (which is under
appeal). As to the balance of the HK$24 Million Order, the
Company is negotiating for further independent financial
arrangements.

5. Reduction of Shareholding in the Company by Mr. William
Chan: During February 2000, a total number of 265 million
Shares was disposed by Mr. William Chan, an ex-director of
the Company. Before the disposal of the Disposed Shares,
Mr. William Chan held approximately 16% of the total issued
share capital of the Company and which represented the
single biggest shareholding in the Company. The Disposed
Shares represented 14% of the total issued share capital of
the Company. As the shareholding of Mr. William Chan has
been reduced below 10% of the issued share capital of the
Company, he is no longer a substantial shareholder of the
Company. The Directors are of the opinion that the disposal
of Disposed Shares has no impact on the operation of the
business of the Company since Mr. William Chan is not
involved in the management of the Company since his
resignation as Director on 31st December, 1999.

6. Acquisition of Property Development Project in PRC:  On
the 28th February, 2000, Opulent Associates Limited, Early
Way Enterprises Limited, Liu Chiu Kwan, Wong Miu Wan
(collectively, as vendors) and the Company (as purchaser)
have entered into a property acquisition agreement, whereby
the Vendors have conditionally agreed to dispose of their
entire interest in Beauty Asia Enterprises Limited to the
Company at an aggregate consideration of HK$90,000,000
(subject to adjustment). The sole principal asset of Beauty
Asia is a 90% interest in a residential and commercial
development project in Fu Shun City, Liaoning Province, the
PRC, with a total site area of approximately 29,871 square
meters. An earnest money of HK$8,500,000 (which was
provided from the Company's then internal resources) paid
on 22nd November, 1999 was converted into a refundable
deposit on the signing of the Property Acquisition
Agreement, the balance of Purchase Consideration in the sum
of HK$81,500,000, will be satisfied by the allotment and
issue of 815 million new Shares credited as fully paid at
the issue price of HK$0.10 for each Consideration Share.
The Consideration Shares will represent approximately
43.17% of the existing issued share capital of the Company
and approximately 30.15% of the issued share capital of the
Company as enlarged by the issue of the Consideration
Shares.

Completion of the Property Acquisition Agreement is
conditional on, inter alia, (i) the approval by shareholder
of the Company; (ii) the granting by the Stock Exchange of
listing of and permission to deal with the Consideration
Shares and (iii) the granting of approval by court order.
The Company will seek approval of the shareholders and
apply for listing of and permission to deal with the
Consideration Shares and for the approval of the court.
Subject to fulfillment of the Conditions Precedent,
Completion is expected to take place on 31st May, 2000.

The Directors are of the opinion that the Property
Acquisition Agreement represents a good opportunity for the
Company to further strengthen its portfolios of real estate
development business in the PRC and that the acquisition is
in the best interest of the Company and its terms and
conditions are fair and reasonable to the Company.

The Vendors are independent third parties unconnected with
any of the directors, chief executives and substantial
shareholders of the Company and its subsidiaries or their
respective associates (within the meaning of the Listing
Rules). The Property Acquisition Agreement constitutes a
major transaction for the Company within the meaning of the
Listing Rules and is subject to approval by shareholders of
the Company. A circular containing further information of
the acquisition and a notice convening an extraordinary
general meeting of the Company to seek approval of
the shareholders will be dispatched as soon as practicable.

The PD Subscription, the Placing agreement and the Property
Acquisition Agreement are not inter-conditional to each
other and are separate from and independent of each other.

Trading of Shares on the Stock Exchange has been suspended
at the request of the Company as from 10:00 a.m. on 21st
February, 2000, trading of the Shares will be resumed as
from 10:00 a.m. on 2nd March, 2000.  (Hong Kong Stock
Exchange  02-March-2000)


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

PT KASOGI INT'L: Second rights issue planned in rehab
-----------------------------------------------------
Publicly listed shoes and sandal producer PT Kasogi
International (JSX:GDWU) plans its second rights issue as
part of its restructuring programme through a debt to
equity swap.

Earlier, Kasogi changed its corporate status to Foreign
Investor under its programme to restructure its debt
amounting to Rp153 billion (US$ 21 million).  Maria
Kristiono, corporate secretary, said the change of status
was needed as the debt to equity swap scheme involved
foreign banks, foreign partners and foreign investors.
(Asia Pulse  01-March-2000)


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

MITSUBISHI HEAVY INDUS.: To book extraordinary losses
NIPPON TEL.& TEL.: To book extraordinary losses
NISSAN MOTOR CO.: To book extraordinary losses
TOHOKU ELEC.POWER CO.: To book extraordinary losses
TOKYO ELEC.POWER CO.: To book extraordinary losses
TOYOTA MOTOR CO.: To book extraordinary losses
-----------------------------------------------------
Major Japanese companies are writing off billions of yen to
cover shortages in their pension and retirement funds as
they brace for an April 1 change in accounting rules
demanding tougher disclosure.

The writeoffs, which prompted many companies to slash
earnings forecasts or unwind shareholdings in other firms
to offset losses, will accelerate this year with an
estimated 50 trillion yen (S$780 billion) reserve shortfall
remaining.

On Tuesday, Japan's largest electric utility Tokyo Electric
Power Co Inc, said it will book an extraordinary loss of
200 billion yen in the business year to March to cover a
shortage in reserves for retirement allowances.

Japan's top comprehensive heavy machinery manufacturer
Mitsubishi Heavy Industries Ltd disclosed a plan to post a
130 billion yen special loss for the same reason. Their
decisions reflect a new accounting rule, which requires
companies to disclose any underfunding of their expected
obligations for retirement allowances and pension payments.

"Although the new rule allows 15 years to fund shortages,
many companies are taking measures to wipe off their
shortfall in shorter periods, aiming to gain credibility in
the stock market," said Daiwa Institute of Research senior
analyst Tatsunosuke Ota.  "Many firms will step up booking
losses to fund the shortage this business year and next
business year, given a small percentage of shortfalls in
listed companies pension fund have been covered," he added.

Tokyo Electric's announcement came a week after Japanese
utility Tohoku Electric Power Co Inc said it plans to raise
its retirement benefit reserves to 98 billion yen from an
earlier forecast 50 billion yen.

As a result, Tokyo Electric, the world's largest publicly
traded electric utility, halved its group net profit
forecast to 70 billion yen for 1999/2000 from a May
forecast of 140 billion yen.

Mitsubishi Heavy will boost sales of shareholdings to 115
billion yen to cushion the blow of its pension fund
shortage, while more than doubling its forecast loss for
the year to March to 142 billion yen.

Japan's leading car maker Nissan Motor Co estimated its
pension shortfall will be 430 billion yen by end-March.
It plans to post a special loss of at least 274 billion yen
for the year to March 31, while telecom giant Nippon
Telegraph and Telephone Corp expects a group special loss
of 768 billion yen for the same period.

In Japan, many companies set up their pension plans years
ago on the assumption of a 5.5 per cent annual yield. But
achieving that kind of return has become difficult in an
environment of official interest rates virtually at zero.
Some companies are also cutting retirement allowances to
offset the funding shortage.

Japan's top automaker Toyota Motor Corp, which had an
estimated premium revenue shortfall of 600 billion yen on
its retirement pension fund as of March last year, has
proposed a cut in the guaranteed rate of interest for
retired employees. (Singapore Business Times  02-March-
2000)

SOGO CO: Shares dive 9% on report of store closure
--------------------------------------------------
Sogo Co shares fell 8.9 per cent or 8 yen to 82 after a
newspaper said the financially troubled Japanese department
store operator will move out of its flagship Osaka store.

Sogo will sell the store to help pay down 1.7 trillion yen
(S$26.5 billion) debt, the Asahi newspaper said.  The
company, which said in April last year it would sell the
building and then rent it from the buyer, has been unable
to find a buyer willing to lease it back, the paper said.

But a Sogo spokesman denied the report, saying the company
hasn't yet abandoned hope of finding a buyer who will lease
the building to the retailer. (Singapore Business Times
02-March-2000)


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

HYUNDAI GROUP: Unnerved by weak share prices
--------------------------------------------
Amid the prolonged weakness of Hyundai Group companies'
share prices, group founder and honorary chairman Chung Ju-
yung has allegedly called for special measures to boost
sagging stock market values.

According to group sources, Chung recently expressed deep
concerns over the bearish sentiments surrounding listed
Hyundai companies and demanded effective and swift
countermeasures before the shareholder meetings later this
month.

"Apart from the honorary chairman's instructions, each of
Hyundai companies is making desperate efforts, including
investor relation (IR) forums, to prop up share prices,"
said a Hyundai executive.

Amid the overall weakness of the Korea Stock Exchange-
listed firms, Hyundai Group shares, heavily concentrated in
traditional manufacturing industries, have been hit much
harder. All Hyundai companies, except Aluminum of Korea
Co., suffered falls in their share prices this year. "As
parts of countermeasures, Hyundai will strive to expand
investments in Internet and venture industries," the
executive said.

According to the KSE, share prices of Hyundai's listed
firms have fallen by an average of 19.4 percent since the
beginning of this year, far exceeding the 14-percent
decline in the Korea Stock Price Index (KOSPI) in the same
period.  Notably, share prices of Hyundai Pipe Co. and
Korea Industrial Development Co., which had implemented
large-scale rights issues last year, fell by 43.9 percent
and 34.7 percent, respectively.

Hyundai Motor and Hyundai Engineering & Construction also
shed 37 percent and 27.6 percent, respectively. Reflecting
the weakening share prices, Hyundai Group's total stock-
market value was overtaken by that of SK and LG groups,
slipping to fourth place in the chaebol ranking, the KSE
noted. (The Korea Herald  02-March-2000)


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

DIVERSIFIED RESOURCES: Shares fall on trading resumption
GADEK: Shares fall on trading resumption
GADEK CAPITAL: Shares fall on trading resumption
HICOM GROUP: Shares fall on trading resumption
--------------------------------------------------------
Shares of Diversified Resources Bhd (DRB), Hicom, Gadek and
Gadek Capital all fell on resumption of trading yesterday
after being suspended since last Friday.

Investors sold the shares following DRB's announcement that
it would amalgamate the businesses of all four groups under
its umbrella, delisting the other three entities in the
process.

The news, as expected did not sit well with investors, and
DRB's stock finished RM1.07 down, or almost 20 per cent
lower, to RM4.38 yesterday, with 17.12 million shares
traded. Hicom was down 39 sen, or 11.5 per cent, to RM2.99
with almost 10 million shares traded, while Gadek was down
16.3 per cent, or 80 sen, to close at RM4.10. Gadek Capital
was also lower, by 13.3 per cent to RM2.08 yesterday.
Hicom's and Gadek's warrants were also down by 32 sen to
RM1.27, and by 34 sen to RM1.19 respectively.  (Singapore
Business Times  02-March-2000)

MOBIKOM SDN BHD: Three more years of losses forecast
----------------------------------------------------
Telekom Malaysia Bhd plans to turn around Mobikom Sdn Bhd
from a loss-making cellular subsidiary into a profitable
one by 2003, said its chief executive Mohamed Said Mohamed
Ali Tuesday.

"Mobikom, which is currently in the red, is expected to
swing back into the black in three years' time," he told
reporters when announcing Telekom's 1999 financial results
here.

He also stressed that there were no plans to shut off
Mobikom's operations although it has the option to do so.
Mohamed Said said Mobikom was expected to perform better,
leveraging on its 800 megahertz frequency which is still an
effective cellular network.

"Obviously, we have to study the business potentials of
each of the network. But there is tremendous value in the
800 megahertz frequency spectrum which Mobikom had both in
terms of technology and in terms of migration to future 3-G
technology," he said.  Telekom felt that holding on to
Mobikom would be "of a great shareholder value in the
future," he said.

Telekom has big plans to revamp Mobikom, the provider of
the "018" mobile telecommunications network and intends to
upgrade the technology of its services and network
capacity.  Mohamed Said also said that the national
utility's objective at the present moment is to rationalise
the operations of Mobikom and TM Touch to reduce and
spread cost within its cellular subsidiaries.

Currently, Telekom cellular businesses were represented by
TM Touch, which provides the "013" cellular mobile
telecommunications service, and mainly operates pre-paid
phones, and Mobikom Sdn Bhd.  He said that Telekom had also
started a series of cost-saving programmes for both TM
Touch and Mobikom and due to this, several hundreds
millions of ringgit could be saved over the next few years.

On Mobikom, he said the cellular company had lost some
142,000 subscribers since the takeover of management by
Telekom. As at Dec 31, 1999, Mobikom had some 54,000
subscribers.  He said that due to the losses incurred by
Mobikom, Telekom had to write-off and amortised the
former's debts by making provisions to the tune of RM86
million last year compared with about RM80 million in 1998.

"However, most of the debts are the old ones before we
(Telekom) took over from the previous management," he said.

Mohamed Said reiterated that Telekom's strategic objective
is to be a major player in the cellular market by expanding
its existing network.  As for Telekom's investment on the
cellular segment, he said it would spend RM2.4 billion (US$
1_RM3.8) just for TM Touch to expand coverage to 90 percent
of mobile accessible population in Malaysia by 2002.

"This would provide the much needed capacity for TM Touch
in order to attain its strategic objective of having a
bigger market share in the cellular market," he said.
(Asia Pulse  01-March-2000)

TELEKOM: Shares dip on weak profits
-----------------------------------
National telephone company Telekom shed 60 sen yesterday,
following its announcement on Tuesday of a 18 per cent
decline in net earnings for the year ended December 1999.

Telekom closed at RM15.50 yesterday, with over 3 million
shares traded, following the results announcement, which
came in below analysts' estimates. Telekom, which saw a
difficult year last year -- due to its loss-making mobile-
phone business, and also a decline in its fixed-line
business -- plans to hive off and list its mobile phone
business, in the hope of capitalising on the current hunger
for telecom businesses. (Singapore Business Times  02-
March-2000)


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


METRO RAIL TRANSIT CORP.: Gov't to assume P2.4B in loans
--------------------------------------------------------
Despite its precarious finances, the Estrada administration
would be forced to bail out the consortium of Metro Rail
Transit Corp. from about P2.4 billion ($60 million) in
sovereign-guaranteed loans maturing in July, said Finance
Secretary Jose T. Pardo.

Pardo admitted the government could not pay the maturing
loans and has started looking for ways to restructure them.
The government, he added, had no choice but to assume the
maturing loans because "that is what's in the contract."

"We just have to see whether we could restructure the loans
by tapping longer-term facilities," said Pardo, also the
vice chair of the Economic Coordinating Council which is
evaluating MRTC's request.

MRTC's $660 million worth of borrowings for the 25-year
build-lease-and-transfer project was guaranteed by the
government.  Pardo said the loans due in July 31 included
the $8.22-million loan from a foreign currency deposit
unit, $7.7 million from a Czech export credit agency, and a
$20.88-million (2.3 billion yen) loan from Japan's Export
Import Bank.

Apart from these loans, the MRTC consortium is asking the
government to infuse an additional $22 million in equity in
the project to cover for the increases in the cost of
building the Metrorail.

"We can defer this request although they have made this
request even before my time," said Pardo.

Pardo said neither the finance department nor the ECC was
involved in evaluating reports the MRTC consortium had
allegedly dipped its hands into the funds of College
Assurance Plan, a company also controlled by Robert John
Sobrepe¤as of Fil-Estate, the lead consortium in MRTC.

Under the existing contract, the Fil-Estate-led consortium
is assured of getting a 15-percent return-on-investments of
$190 million yearly whether or not it delivers the
projected 440,000 commuters daily to reach break-even cost.
Actual passenger traffic, however, was recorded at only
40,000 daily. (Philippine Daily Inquirer  02-March-2000)

NATIONAL STEEL CORP.: Gov't may have contributed to failure
-----------------------------------------------------------
The government may have failed to exercise due diligence in
protecting the country's interest when it sold cash-
strapped National Steel Corp. (NSC), Senator Juan Ponce
Enrile said yesterday.

During a Senate hearing, the government corporations
committee chairman cited the National Development Co.'s
(NDC) failure to check the financial and technical
background of Wing Tiek Holdings Berhad of Malaysia. NDC
controlled NSC until 1995 when 82.5% of its shares were
bought by the Malaysian firm. Wing Tiek's control, however,
did not result in improved operations after it failed to
deliver on its original commitments.

In 1997, the controlling shares were sold to another
Malaysian firm, Hottick Investments Ltd. In yesterday's
hearing, it was disclosed that Wing Tiek was left with
assets worth only $120 million at the time it was planning
to invest $800 million in NSC. Initially, Wing Tiek planned
to pay its obligations by paying only a portion of the
purchase price while its unpaid balance would be paid the
following year after selling NSC shares for 15 Philippine
pesos (PhP) each.

The firm acquired the shares for only PhP7 per share. Asked
why NDC failed to impose the forfeiture provision of the
agreement in case of Wing Tiek's default, Mr. Aguilar said
they wanted to avoid being involved in a legal battle. NSC
transferred 600 hectares of land to the newly formed
private corporation connected to Wing Tiek, National Steel
Corp. Properties, Inc. (NSCPI), for PhP100 million (US$2.4
million at PhP40.906:US$1).

NSCPI officials admitted they paid NSC only 10% of the
amount. Mr. Enrile quoted Iligan City officials as placing
the price of land in the city at PhP20,000 per square
meter. (Business World  02-March-2000)

PHILIPPINE NAT.BANK: To declare PhP7-B operating losses
-------------------------------------------------------
Semiprivate Philippine National Bank (PNB) is expected to
declare an operating loss of up to seven billion Philippine
pesos (US$171 million at PhP40.906:US$1) in 1999 due to its
burgeoning portfolio of non-performing assets, a top
industry source yesterday said.

"It's bigger than what they (PNB officials) originally
expected," the source said.

He said PNB was earlier expected to break-even last year,
but some "unexpected events" cropped up, prompting its
management to revise earlier estimates.

"Mostly, it was because of the high level of non-performing
assets, estimated to be at least double the industry's
average level," he said.

Unless the bank receives much-needed re-capitalization from
strategic investors, its operating loss would be even
higher this year, he added.  "These are just estimates, but
(the operating loss) could go as high as PhP10 billion
($244.5 million)," he said.

The bank has just raised PhP9.47 billion ($231.5 million)
in September last year to boost its capital base.  "But
this has proved to be insufficient given the state of their
asset base," the source said.

He also said the bank's new management, led by tobacco and
beer taipan Lucio Tan, had discovered the bank had shelled
out a total of $11 million for its former board of
directors.  "That's $1 million per director or PhP40
million ($977.8 million) each!" the source said. "Isn't
that a bit too high?"

Before Mr. Tan's entry, PNB's board was headed by
Agriculture Secretary Edgardo Angara until April 1999, and
former Supreme Court chief justice Andres Narvasa. The
source said the hefty directors' fees will have to be
reported in the bank's annual report, detailing expenses to
directors and top management as mandated by law.

The government is scheduled to sell its remaining 30% stake
in PNB by the end of the first half, keeping with the terms
and conditions under the World Bank's $300-million banking
sector reform loan.  The bank's top shareholders are Mr.
Tan, who has 45% stake, the National Government with 30%,
and Hong Kong-based Templeton Asset Management Corp. with
12%. The government is confident it can command a price of
between PhP150 to PhP160 per share if it unloads the 87%
combined stakes of the top three shareholders as a block.

A point of contention, however, is the bank's true book
value, estimated at PhP90 per share as of end-1998. This
was 10% lower than the bank's PhP100 per share par value.
The government is hoping the deficit in book value will be
compensated by PNB's "goodwill", large branch network, and
profitable remittance business. (Business World  02-March-
2000)

PILIPINO TEL.CORP.: Hopes to finalize rehab pact this month
-----------------------------------------------------------
Cash-strapped Pilipino Telephone Corp. (Philtel), expects
to sign a final agreement with its creditor banks this
month, wth the hope of closing the company's overall
restructuring program for its whopping P34.9-billion
obligation by year-end.

Manuel Pangilinan, president and chief executive officer of
Philippine Long Distance Telephone Co. (PLDT), parent firm
of Piltel, said the banks have agreed to extend the
negotiations until end of March to further thresh out
details of the deal.

He stressed that the arrangement with the banks will serve
as a basis for the talks with the bondholders and with
Japanese supplier Marubeni where Piltel has the biggest
obligation of $279 million.

"Piltel has spoken with the bondholders and I believe that
the exchange offer will be guided by the Marubeni
discussions and the signing of the definitive agreement
with the banks," he said.

Although negotiations with Marubeni are ongoing, Pangilinan
said he could not report any specific progress.  "I think
they (Piltel) are focusing on the banks and the bond
holders before they get into more serious discussions with
Marubeni," he pointed out.

In a memorandum of understanding signed with the banks last
October, 50 percent of Piltel's debts with the banks will
be replaced by peso-denominated Piltel convertible
preferred stock exchangeable into PLDT convertible
preferred stock.  In a related development, Piltel reported
yesterday a loss of P3.9 billion for 1999, although this is
considerably lower than the P4.1-billion loss in 1998.

The company told the Philippine Stock Exchange that its net
operating loss for the year was at P2.7 billion, of which
P1.2 billion alone related to interest on its loans. The
publicly-listed cellular firm attributed the income
hemmorhage to lower revenues and increased costs due
largely to higher depreciation of its assets.

With increased competition from GSM providers and the
growing dominance of prepaid services, Piltel's net
operating revenues dropped 19 percent to P3.7 billion, from
P4.6 billion a year ago.  This is despite a 21 percent
increase in its subscriber base to about 457,000 at year-
end, bolstered by an 82 percent growth in its prepaid card
customers to 323,000 or 70 percent of its total
subscribers. The prepaid scheme, however, is a lower margin
service than the post-paid or billed customer base. (The
Philippine Star  02-March-2000)


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

BANK OF AYUDHYA: Bank stocks slide
KRUNG THAI BANK: Bank stocks slide
THAI FARMERS BANK: Bank stocks slide
------------------------------------
The benchmark index fell 4.5% in thin trading, ending at
the day's low after breaching the 400-point support at
midday amid selling in banking and blue-chip stocks,
traders said.

Selling pressure in the banking and other big-capital
sectors started early in the morning, in line with other
Asian exchanges.  Declining domestic shares outpaced
advancers 215 to 35.

Krung Thai Bank fell 6.6% and topped the most actively
traded stocks in terms of volume.  Thai Farmers Bank slid
3.5% and Bank of Ayudhya tumbled 7%. The two stocks were
also on the actives list.  Heavyweights stocks in the
energy and building sectors were down on selling by foreign
and institutional investors.  (The Asian Wall Street
Journal  29-Feb-2000)

NAKHON SAWAN INDUS.CO.: Large sugar mills to help small one
-----------------------------------------------------------
Two large mills in the Thai Ekalak Sugar Group will assist
a smaller mill as part of the group's debt restructuring
plan, according to Praphan Siriviriyakul, the managing
director.

The three sugar mills-Thai Ekalak Sugar Co, Kaset Thai
Sugar Co and Nakhon Sawan Industrial Co-owe a total of 14
billion baht to 11 creditor banks led by Thai Farmers Bank.
Under the plan, Thai Ekalak Sugar, which owes four billion
baht, and Kaset Thai Sugar, which owes seven billion, are
to repay debt completely within 10 or 11 years. But Nakhon
Sawan Industrial, the smallest mill, would need 28 to 30
years to service its debt of three billion baht.

Because of this, Mr Praphan said, the two larger firms
agreed in principle that once their loans were repaid, they
would help speed up repayments for Nakhon Sawan Industrial
to within 15 years.  As a result, Thai Ekalak and Kaset
Thai mills were likely to receive no dividend for 15 years,
instead of 10 or 11 years, he said.

Thai Ekalak Sugar produces 28,000 tonnes of sugar annually.
The company is 60% owned by the Siriviriyakul family and Mr
Praphan's associates. Its annual cashflow is 200 million
baht.  Kaset Thai Sugar Co's annual output is 45,000
tonnes. The company is owned in equal shares by Thai Ekalak
Co and Mr Praphan's group. The company has around 600
million baht in annual cashflow.

Nakhon Sawan Industrial produces 14,000 tonnes a year. The
company is 40% owned by Thai Ekalak Co and 60% by Mr
Praphan's group. It has annual cashflow of about 100
million baht.  Mr Praphan said the three sugar mills would
not need new fund from creditors once debt was
restructured. They had enough cashflow to cover operating
costs and repay principal and interest.

Banks would not be asked to take a loss on their
investment, but would be asked to reduce interest charged.
He said his group wanted the creditor banks to accept sugar
mortgages so it could pay planters. However, if the banks
were reluctant to help, his group needed to sell sugar
without delay.

Although prices would be discounted, the group could make
some profit because its production costs were lower than
those of many other companies.  Mr Praphan said the
financial position of his group remained sound with total
assets standing at 23 billion baht against 14 billion baht
in liabilities.

Many creditor banks understood difficulties facing the Thai
Ekalak Sugar group and had agreed to ease terms and
conditions, he said.  The debt-restructuring plan proposed
by his group is expected to be considered at a meeting of
creditors in March.

Last year, the three mills earned around one billion baht
in total revenue.  As a result of the sugar price fall on
world markets, it's doubtful whether the mills will match
last year's figure.  (Bangkok Post  29-Feb-2000)

NAWARAT PATTANAKAN: Hearing on rehab plan Mar. 20
-------------------------------------------------
Nawarat Pattanakarn (NWR) said that the Central Bankruptcy
Court has scheduled its first hearing for the company's
business rehabilitation plan for March 20, as requested by
its creditors.

In a filing with the Stock Exchange of Thailand, the two
creditors - Siam Commercial Bank and Ekachart Finance -
said they needed to push ahead with the court proceedings
in order to minimise the debt restructuring process and
prevent any problems that may occur if the process was
delayed.

NWR's shareholders agree to increase Siam Commercial Bank's
share allotment to reduce the firm's liabilities.
According to the filing, there was an issue concerning an
increase of shares to the bank. After NWR increases the
number of shares to existing shareholders and the bank,
Siam Commercial Bank will own 49 per cent of the company.
The bank purchased the US$30 million debt from offshore
lenders.

The bank will be repaid through income from NWR's waste
water treatment project for the Bangkok Metropolitan
Authority.  Shareholders have asked the board of directors
to negotiate with the bank and allow the company's existing
shareholders to buy back the shares at 1 satang per unit.
(The Nation  01-March-2000)

ONPA INT'L PLC: Seeks listing on Nasdaq, after share swap
---------------------------------------------------------
Onpa International Plc, the tape cassette and compact disc
manufacturer, plans to seek listing on the US Nasdaq market
following its Bt1.6 billion debt restructuring and a tie-up
with new partners.  The plan, however, will have to wait
until after the approval of the Stock Exchange Commission
over the company's share swap.

Under the agreement, Onpa will offer 75 million shares out
of a total of 248 million new shares to Broadcasting
Network (Thailand) (BNT) in return for a 7.5 per cent stake
in Thai Television Broadcaster ITV Plc, and a 4.83 per cent
stake in Siam Sat Network Co.

Itthivat Bhiraleus, chairman of Broadcasting Network
(Thailand) Ltd (BNT), said under the new organisational
structure, he would become chairman and CEO of Onpa after
BNT and other partners step in to acquire a 60 per cent
stake.

He said E-Trade, a US Internet broker, has recently
conducted a review of Onpa and found that the company had
the potential to become an entertainment multimedia group,
which then could seek Nasdaq listing.

Itthivat said E-Trade has already approached Onpa
concerning the Nasdaq listing, viewing that the company
would rely on BNT to help it move into the electronic
commerce sector.  E-Trade is the US largest Internet broker
with the largest market capitalisation and number of
licences worldwide.

Itthivat said after the approach, listing on Nasdaq would
hopefully lead to capital gains. Under the new structure,
BNT would hold 60 per cent, Onpa would reduce its stake to
13-14 per cent. The remainder would be owned by small
investors and financial institutions.

Also part of the debt restructuring, BNT would buy Onpa's
related business Right Picture Plc. Under the agreement BNT
would take responsibility for all of Right Picture debts.

Itthivat said BNT would instil three foreigners at the
chief executor office level to take responsibility of
finance, operations and marketing. The new recruits would
help Onpa become more professional, he said. Additionally,
one of those three would be appointed Onpa's president.

"We hope to see Onpa as a debt-free company paying high
dividends to shareholders," Itthivat said, adding that he
wanted to create a new company image based on a good
financial status in order to attract investors.

Onpa will also get involved in mobile commerce after
completing the share swap, teaming up with the CP Group's
7-11 convenience stores.  Under the plan, BNT, which
already owns the entertainment rights to satellite TV's
Channel V and Star TV, would be involved in selling
entertainment products via electronic distribution systems,
such as cellular phones.

If a customer wanted certain products, he or she can place
an order by phone before picking up the products at 7-11.
Payment can be made through a smart card or cash at the
point of sale.  The Onpa's product would concentrate on
cassette tapes, compact discs and books. For books,
customers can look for details via the Internet and place
an order by phone.

CP will be the force behind the company because it will
become its distribution arm. Seven-eleven stores have been
growing rapidly in the country, with more than 1,400
branches, and will facilitate Onpa's new business. The new
venture will help the company become an electronic
multimedia group.

E-commerce and media and entertainment commerce would than
be combined within the group. There are about 20 million
television sets for 65 million people.  Itthivat said the
Onpa's new business could start operating within three
months depending on when approval was given for the
issuance of new shares.

He added that Onpa's products would directly support the
new business by supplying tape cassettes and compact discs.
The venture between Onpa and BNT would lead to the business
enjoying low production costs.  Viroj Prichavongwaikul,
Onpa's former president, said he accepted the new BNT
management although he was not part of the new team.

"I have no problem with the new management. My leaving will
pave the way for newcomers," he said. (The Nation  02-
March-2000)

THAI AMARIT BREWERY: PricewaterhouseCoopers plan adviser
--------------------------------------------------------
The Bankruptcy Court confirmed the appointment of
PricewaterhouseCoopers Corporate Restructuring Limited to
advise Thai Amarit Brewery Limited on its rehabilitation
plan as set out by the Bankruptcy Act.

The appointment followed a meeting of creditors which voted
in favour of PricewaterhouseCoopers to act as adviser,
beginning in three weeks. Up till then representatives of
the Official Receiver's Office will act as temporary
managers for Thai Amarit.

Once PricewaterhouseCoopers has worked out a rehabilitation
plan with Amarit, it will be presented to the Bankruptcy
Court and creditors for review and approval.  John Perrins,
a partner at PricewaterhouseCoopers, said his firm would
work out the plan as quickly as possible, adding that the
day-to-day running of the company would continue as usual
with a minimum of disruption. (The Nation  02-March-2000)

THAI PETRO.INDUS.: Claims creditor has conflict of interest
-----------------------------------------------------------
Watchiraphun Promprasert, chief financial officer of Thai
Petrochemical Industry Plc, yesterday claimed in testimony
before the Central Bankruptcy Court that Bangkok Bank, one
of its largest creditors, had a "conflict of interest" in
the country's biggest debt restructuring case.

He said the bank's major shareholders were also major
shareholders of HMC Polymer and Bangkok Polyethylene, which
were TPI's competitors in the polyethylene business. The
two firms are downstream petrochemical operators with a
combined capacity of 320,000 tonnes per year.

Their major shareholders include Chatri Sophonpanich,
executive chairman of Bangkok Bank and Chartsiri
Sophonpanich, the bank's president, as well as Charlie
Sophonpanich, Chatri's son.

Watchiraphun said the two firms' production cost was higher
than TPI, which was an integrated petrochemical operator,
with upstream units - so the bank, as the major creditor,
had an "ulterior motive" in taking over TPI, which had an
annual capacity of 500,000 tonnes of polyethylene.  He said
in his testimony that the bank and other major creditors
had pushed for a $3.5 billion debt-restructuring plan, in
which the debtor company would find it easy to face
defaults again.

The plan, which will be considered by the court in the next
stage of the case, is for TPI to pay back the entire debt
of Bt3.5 billion by the end of 2003.  Watchiraphun told the
court that the company would be able to generate combined
revenue of only $2.8 billion from 1999 to 2003,
insufficient to pay back the debt.

As a result, Bangkok Bank and other creditors harboured a
motive of taking over the company if it defaulted again.
In addition, Affective Planner was named as plan
administrator for the TPI case. Watchiraphun told the Court
that Bangkok Bank was behind Affective Planner, a unit of
the restructuring consultant firm, Ferrier Hodgson.

The TPI chief financial officer also claimed the creditors
had a plan to liquidate the assets of TPI, including 5-6
companies in the polyethylene business in which the Bangkok
Bank group currently had significant interests.
Watchiraphun was a key witness in yesterday's hearing,
presided over by judges Pornchai Asavaratanaporn and Wad
Ruklertkul.

Prachai Leopairatana, the chief executive officer of TPI,
is expected to testify tomorrow before the Court, which is
hearing witnesses to determine whether TPI is insolvent.
If ruled insolvent, the court would consider the debt-
restructuring petition from creditors.  TPI declared a debt
moratorium in August 1997, following the baht's
devaluation, owing a total of US$3.5 billion to a total of
more than 140 Thai and foreign creditors.

Bangkok Bank, Watchiraphun said, had received payment of
more than Bt350 million during the moratorium period by
offsetting debt via the company's letter of credit
accounts. (The Nation  02-March-2000)

THAI PETRO.INDUS.: Prospects remain uncertain
---------------------------------------------
Thai Petrochemical Industry Plc's prospects remain
uncertain following a rift between the company and its
creditors on the US$3.5 billion debt-reform plan.

But analysts are upbeat about TPI shares, given that it is
widely regarded as impossible the court would rule the firm
insolvent, particularly during the current petrochemical-
price upswing.  The Central Bankruptcy Court yesterday
tried in vain to forge a compromise between the two
parties.

The case came to light last month when TPI's major
shareholder, Prachai Leophairatana, filed an objection
against the creditors' plan, citing that the company's
assets exceed its liabilities by about Bt28 billion.
TPI share prices yesterday, however, gained Bt0.25 to
Bt10.25 at the close of markets after a recent sharp
decrease in its share price.

SG Asia Credit Plc said in a research report that the court
could not possibly accept the creditors' reorganisation
petition and it would choose to bring in a new strategic
partner instead of liquidating TPI's assets.  The report
claimed there would be little gained from declaring
insolvency and a chance would be lost to take advantage of
a recent substantial petrochemical cyclical upswing.

SG Asia Credit said it was highly unlikely the court would
accept TPI's reorganisation, because creditors might file
individual civil suits against TPI, which could take years
to settle.

"If creditors file a unilateral (hostile) reorganisation
action against a debtor, and have the plan accepted by the
court, the debtor can appeal the decision in the Supreme
Court. This could take an additional six to 12 months," the
report said.  "If the Supreme rules in favour of the
creditors, then the plan can be implemented. However,
creditors will be bound to reorganise, not liquidate.
If the creditors amend a proposed plan over an objection by
the debtors, the same process above applies - the debtor
can re-appeal to the Supreme Court.

"Each new plan can take up to a maximum of five months to
formulate. If the second plan is rejected, then the
creditors have no option but to change their petition to
liquidation," the report said.

It said if the 150 creditors have to shoulder the burden of
the lengthy process, then they might finally consent to
compromise with the company, by offering some incentives
such as a guaranteed rollover of remaining unpaid debts, or
retention of TPI as plan administrator.  The share-price
weakness this week provided investors with the opportunity
to buy TPI. The report predicted that TPI share prices
should be Bt43 by year's end.

Capital Nomura Securities Plc estimated that TPI's net
present value should be Bt25-Bt29, regardless of the
outcome of its debt-restructuring plan.  "The decline in
share price means opportunity for investors in buying TPI
shares for long-term investment," the report said.

Marit Tarab, KGI Securities One Institute general manager,
estimated TPI's net present value at Bt18-Bt20. However, he
recommended investors stand on the sidelines and watch
development of the case, because of the uncertainty of the
result.  The company's case had become a national issue,
because foreign investors were watching closely for the
outcome.

If the court ruled in TPI's favour, investors' confidence
would be eroded and fears would be raised about other
delinquent companies following suit, he said. (The Nation
02-March-2000)

THAI PETRO.INDUSTRY: Creditor banks plan civil suit
---------------------------------------------------
Creditor banks of Thai Petrochemical Industry (TPI) will
file a civil suit in the Central Intellectual Property and
International Trade Court if they lose their case against
the company in the Central Bankruptcy Court, according to a
letter issued by the committee representing the 148
creditor banks.

The plan became an issue at the bankruptcy hearing
yesterday. The newly-established Central Bankruptcy Court
is considering whether TPI is insolvent or not. If it rules
that TPI is insolvent, the way will be paved for creditors
to take control of the company and replace its current
management. The convoluted struggle between the company's
management and its creditors has been going on for more
than two years.

In the letter, the committee also suggested that the five
or six creditor banks that continue to provide the company
with a line of credit should stop doing so.  The creditors'
plan to cut TPI's line of credit was an attempt to drive it
into financial trouble and then take it over, Vachiraphand
Phromprasert, the head of the company's finance department,
told the court.

The creditors' debt-restructuring plan was unfair to the
company, said witnesses on behalf of the company. Along
with Vachiraphand, Boonsin Kobboon, a former prosecutor and
now a legal advisor to the company, and Nantha
Wongpiyanand, a company official, testified on behalf of
TPI.

Speaking for the creditors, Apichart Phukeasom, a lawyer
from Johnson Stokes and Master which is advising Bangkok
Bank, said that creditor banks have not been trying to
block the company from getting hold off working capital.
The recommendation to cut its line of credit was part of a
contingency plan, he said. If the company won the case in
the bankruptcy court, then creditor banks should cut its
line of credit.

"If the court rules in favour of TPI, the foreign creditors
will sue for their money in the Central Intellectual
Property and International Trade Court, while the local
creditors will sue in the civil court," he said.

Recovering loans would take about six months if creditors
took their case to the Central Intellectual Property and
International Trade Court, he said, countering the claim by
the company's CEO, Prachai Leopairatana, that it would take
them 5-10 years. If the Central Bankruptcy Court rules in
favour of TPI, the creditors would not be able to sue the
company for bankruptcy again, he said.

TPI is not insolvent because its monthly cashflow is
between Bt5 billion and Bt6 billion, Vachiraphand said.
The court will hear testimony from five witnesses today.
Prachai will testify tomorrow. Next week, the court will
rule whether TPI is insolvent or not.

The company owes creditor banks US$3.5 billion. They
include Bangkok Bank, Export-Import Bank of the United
States and the International Finance Corporation, the
investment arm of the World Bank. (The Nation  02-March-
2000)

THAI TEL.& TEL.: Restructures debts of Bt38 billion
---------------------------------------------------
Creditors of Thai Telephone & Telecommunication (TT&T)
yesterday overwhelmingly approved a Bt38 billion debt-
restructuring plan.

Two separate groups of creditors met at the Bank of
Thailand to vote on the plan for the provincial fixed- line
operator.  After three hours of meetings supervised by the
Corporate Debt Restructuring Advisory Committee, creditors
approved the plan to restructure Bt9 billion in debt. A
rescheduling timetable for the other Bt29 billion - most of
which is suppliers' credit - was simultaneously approved.

Niti Suntonvijitr, an official with AIG Finance, one of the
creditors, said only 10 per cent of the creditors disagreed
with the plan, which had already faced months of delay.

"The disagreement means that TT&T has to seek bankruptcy
court protection from a possible lawsuit from the minority
creditors," Niti said. But this is not seen as a major
issue now, as the company's financial restructuring can
proceed.

TT&T is the last of the private telecom companies to
complete the debt-restructuring process. The company
recently reported a profit of Bt2.53 billion for last year,
up from Bt846 million the year before.

TT&T's subordinate creditors - including such shareholders
as Jasmine, Loxley, Italian-Thai Development, Nippon
Telegraph and Telephone Corporation (NTT) and Phatra
Thanakit - agreed to convert Bt7 billion of debt to equity.
Other creditors - including Thai Farmers Bank, Krung Thai
Bank, Bank Thai, Credit Lyonnaise and Bank of Sweden - have
agreed to reschedule Bt31 billion in debt.

The amount will be repaid in three tiers. Bt19 billion
would be repaid in 12.5 years with a two-year grace period,
Bt6 billion would be repaid in 14.5 years with a five-six
year grace period and Bt6 billion would be repaid in 14
years.  The company is also allowed to raise its capital by
Bt5 billion within 18 months with Bt3 billion provided for
debt payments and Bt2 billion for business expansion. The
new shares will be offered to strategic partners.

The company has recently been the target of a takeover
attempt by several giant companies, including Shin
Corporations, the biggest telecom firm, and TelecomAsia,
the fixed-line operator in Bangkok, which is part of the
giant CP Group.

Meanwhile, TT&T plans to ask the Telephone Organisation of
Thailand for compensation, since its revenues will decline
with the new fixed-line tariff system approved by Cabinet
on Tuesday.  Because it is a provincial fixed-line
operator, TT&T will be the telecom firm most affected by
the implementation of the new tariff that reduces long
distance fees.

In contrast, TelecomAsia said that it would only be
slightly affected by the tariff because its service covers
only Bangkok.  Dr Thongchat Hongladaromp, president of
TT&T, said that the new tariff would cause a loss of
company revenue.

"The state agency will have to compensate us, according to
the concession agreement," Thongchat said.

The company was calculating the amount of the possible loss
and the result would be submitted to the state agency soon.
It would ask for compensation in the form of a revenue-
sharing reduction.  TT&T is also readjusting its revenue
collection formulas to be in line with the new tariff,
Thongchat added.

An executive at the Telephone Organisation said his agency
and the private telecom firms have already discussed the
implementation of the new tariff system.

"We also informed them that they are allowed to choose
freely whether to adopt the new tariff or not," he said.
"Therefore they cannot claim that they have to readjust the
revenue collection formulas because of the new tariff."

The agency acknowledged that the tariff system would
initially reduce the revenue of fixed-line companies. But
in the long term they would benefit from an increase in the
amount of phone use.  Cabinet endorsed the new fixed-line
fee system giving consumers three options for phone
services.

The maximum fee for a long distance call would be Bt12 per
minute, down from the current Bt18 for users who chose to
pay slightly higher monthly fees. The agency said the new
rates would be implemented within a few months. (The Nation
02-March-2000)


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