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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

              Monday, March 6, 2000, Vol. 3, No. 45

                          Headlines


* A U S T R A L I A *

AMP: Directors called `laggards,'revolt urged
AURORA MINING: Directors called `laggards,'revolt urged
CENTAUR MINING: Directors called `laggards,'revolt urged
CHINA CONSTRUC.: Directors called `laggards,'revolt urged
COCA COLA AMATIL: Directors called `laggards,'revolt urged
CSR: Directors called `laggards,'revolt urged
MACMAHON HOLDINGS: Directors called `laggards,'revolt urged
MAYNE NICKLESS: Directors called `laggards',revolt urged
NORCO: Shareholder suit threated for missed takeover offer
RESOLUTE MINING: Directors called `laggards',revolt urged


* C H I N A  &  H O N G  K O N G *

GOODWAYS ENTERPRISES LTD: Facing winding up petition
HONG KONG RELIANCE ET AL.CO: Facing winding up petition
LENTEX LIMITED: Facing winding up petition
MANART HOLDINGS LTD: Facing winding up petition
PARKWAY FOOTWEAR LTD: Facing winding up petition
TRENDEER LIMITED: Facing winding up petition
WAH PO SILK FASHION CO.: Facing winding up petition


* I N D O N E S I A *

PT HUMPUSS TERMINAL PETIKEMAS: Denials in asset sale
PT TIRTAMAS COMEXINDO: Creditors to decide its fate soon


* J A P A N *

ARABIAN OIL CO.: Drilling rights loss prompts cuts
ASAHI OPTICAL CO.: To post 3.5Bln Yen pretax loss
DAIEI INC.: Facing net loss
DAIEI OMC INC.: Facing net loss
KYOCERA CORP.: To take special pension-shortage loss
MARUETSU INC.: Facing net loss
NIPPON LANDIC CORP.: Trust to forgive Y8.9B in loans
SUMITOMO METAL MINING CO.: To post 12Bln Yen special loss
SUPER TOOL CO.: To record 1.18Bln Yen net loss
TODA CORP.: To book 17Bln Yen special loss
TOKYU CONSTRUCTION CO.: Share price has seriously fallen
TOYO INK MANUFACTURING: Canon sues over patent


* K O R E A *

CHO HUNG BANK: Daewoo collapse flames deficit
HANVIT BANK: Daewoo collapse flames deficit
JEONBUK BANK: Daewoo collapse flames deficit
KOREA EXCHANGE BANK: Daewoo collapse flames deficit
KWANGJU BANK: Daewoo collapse flames deficit
PEACE BANK: Daewoo collapse flames deficit
SEOUL BANK: Daewoo collapse flames deficit


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

BATONG BUHAY MINES: Inquiry sought into acquisition
MINDANAO PORTLAND CEMENT: Cement dumping brings huge losses
NATIONAL STEEL CORP.: SEC appoints receiver
PETRON CORP.: Reports P500M loss
PHILIPPINE VETERANS BANK: Central bank puts on tight watch
PILIPINO TELEPHONE CORP.: Parent to release P14.7B to it
RIZAL CEMENT CO.: Cement dumping brings huge losses
TITAN CEMENT MFG.CORP.: Cement dumping brings huge losses
UNIWIDE GROUP: Landbank bucks revised rehab plan
WESTMONT INVESTMENT CORP.: Hit by liquidity squeeze


* T H A I L A N D *

CH KARNCHANG: Posts annual loss
INT'L QUALITY ASSURANCE LAB.: Rehab to involve share buying
NTS STEEL GROUP: Posts wider annual loss
PANJAPOL PULP INDUS.: Debt plan gets creditor backing
SUN TECH GROUP: Reports debt restructure progress to SET
THAI PETRO.INDUSTRY: Claims a corporate conspiracy
THAI PETRO.INDUS.: Submits new plan;court delay to Mar.15
THAI TEL.AND TEL.: B38bn debt workout approved
THAI TEL.& TEL.: NTT West's Thai affiliate reschedules debt
THAI TEL.AND TEL.: Becomes target after restructuring


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

AMP: Directors called `laggards,'revolt urged
AURORA MINING: Directors called `laggards,'revolt urged
CENTAUR MINING: Directors called `laggards,'revolt urged
CHINA CONSTRUC.: Directors called `laggards,'revolt urged
COCA COLA AMATIL: Directors called `laggards,'revolt urged
CSR: Directors called `laggards,'revolt urged
MACMAHON HOLDINGS: Directors called `laggards,'revolt urged
MAYNE NICKLESS: Directors called `laggards',revolt urged
PARBURY LTD.: Likely to fall to Atkins
RESOLUTE MINING: Directors called `laggards',revolt urged
-----------------------------------------------------------
Directors of 44 laggard companies have been put on notice
to lift their game or face shareholder revolt at their
annual meetings this year.

The Australian Shareholders Association yesterday named 44
companies that had lagged overall or against their peers
during the past three years.  The list, the longest since
it was launched in 1998, includes blue chips such as AMP,
CSR, Coca Cola Amatil and Mayne Nickless.  Mining companies
dominate, but contractors, financial services, media and
building products are also targets.

ASA executive director Tony McLean said boards should be
held accountable for performance and opposed at re-election
where they could not justify their actions.

"Many of our members invest for the long term and they
don't want to walk away from companies when there are other
measures available," Mr McLean said. "We believe boards
should be pressured to do more about performance."

Measured by a combination of share price performance,
dividend and imputation credits, Joseph Gutnick's Centaur
Mining is the worst performer over three years, down 46.6
per cent.  Gold miners Resolute and Aurora are down 35 per
cent and 29.9 per cent respectively over the same period.
But the list, based on figures to June 30, 1999 which were
published in The Australian's annual Shareholder Report
Card, also shows the companies' returns relative to their
sectors.

Contractors China Construction holdings and Macmahon
Holdings were both down nearly 20 per cent against a better
than 30 per cent rise in their sector.  AMP, which last
week reported $1.4 billion in abnormal losses, has returned
a negative 11.2 per cent to shareholders over the year to
June 30, 1999, slightly outperforming its sector, which
fell 14.2 per cent.

Boral's Envestra spin-off was included on the basis of a
2.7 per cent negative return against a 16 per cent gain for
its sector. Boral, too, would have been the first building
company targeted but for a recent split between the
remaining energy and building products business.

"The ASA will be closely monitoring the progress of the two
offshoots," the ASA said yesterday.

The ASA warned that it would orchestrate opposition to the
re-election of chairmen or long-serving directors "in some
cases".  Mr McLean refused to name specific targets for
this action.

"Too many directors who stand for re-election are re-
elected automatically and the ASA would like to see more
shareholders using their votes intelligently to oppose re-
election where it's warranted."

The association would also seek support from institutional
fund managers who have shied recently away from public
stands against company boards.  (The Australian  03-March-
2000)

NORCO: Shareholder suit threated for missed takeover offer
----------------------------------------------------------
Shareholders of NSW dairy co-operative Norco have
threatened to sue their board, claiming it failed to assess
a takeover offer adequately.

Three co-operative members told The Australian they might
follow the GIO example and launch a class action, provided
others supported them.  The Norco board of directors
rejected a $92 million bid in October 1998 from Dairy
Farmers, telling shareholders the company faced a brighter
future by going it alone.

But shareholder and dairy farmer Max Lange said Norco had
performed disastrously, with the move to start an ice-cream
operation opening a "black hole" in earnings.

Mr Lange said he believed Norco's directors who, he alleged
received the original Dairy Farmers offer one morning and
dismissed it that afternoon, "are going to have to be
responsible for their actions of deliberately not assessing
an offer properly".  Legal action was "the only way we can
do it", Mr Lange said.

The Norco board is believed to be talking to Parmalat about
selling the Italian group part of the business,
particularly its milk-packaging joint venture, for about
$30 million.  Parmalat group managing director Ray Hill
confirmed the two parties were in talks, but they were at
an early stage.

Norco chairman Greg McNamara said the company was talking
about its future to a range of dairy companies, including
Murray Goulburn and Dairy Farmers, as well as Parmalat.
Mr McNamara said he was not aware of or concerned about the
possibility of legal action by shareholders.

"I'm concentrating on talking about what's at hand and
looking to secure our future," he said.

While he declined to review the grounds on which the board
rejected Dairy Farmers offer, he said he believed the board
had given the proposal "reasonable consideration".

He could not remember the time-frame of the board's
consideration of the Dairy Farmers' offer.

Mr McNamara said: "In hindsight we could say there were
things we should have done here or there", but "looking
back doesn't do a great deal of good."

He said Norco lost $1.3 million in the year ended June
1999. (The Australian  03-March-2000)

PARBURY LTD.: Likely to fall to Atkins
--------------------------------------
Atkins Carlyle is poised to take control of building
materials company Parbury Ltd after a white knight failed
to come to Parbury's rescue.

Parbury's two largest shareholders are now expected to
accept Atkins Carlyle's offer, which would lift the
industrial company's holding to more than 70 per cent from
about 45 per cent.  Principal and Morgan Stanley together
have 29.5 per cent of Parbury stock and were understood to
have been holding out for a possible higher offer. But
Fletcher Challenge Building has decided not to act.

Parbury's board had rejected Atkins Carlyle's $54 million
takeover offer, arguing the 43 cents bid was inadequate.
(Sydney Morning Herald  03-March-2000)


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

GOODWAYS ENTERPRISES 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
Chan Wing Mui for the winding up of Goodways Enterprises
Limited.  A notice of legal appearance must be filed on or
before March 28.

HONG KONG RELIANCE ET AL.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
Chan Kam Shing for the winding up of Hong Kong Reliance
Industrial Transportation Company Limited.  A notice of
legal appearance must be filed on or before March 28.

LENTEX LIMITED: 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 Or
Sun Sun for the winding up of Lentex Limited.  A notice of
legal appearance must be filed on or before March 28.

MANART HOLDINGS 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 Ng
Kwok Hung for the winding up of Manart Holdings Limited.  A
notice of legal appearance must be filed on or before April
4.

PARKWAY FOOTWEAR 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
Cheung Chi Wing for the winding up of Parkway Footwear
Limited.  A notice of legal appearance must be filed on or
before March 28.

TRENDEER LIMITED: Facing winding up petition
--------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for April 12 on the petition of Wan
Sik Chi for the winding up of Trendeer Limited.  A notice
of legal appearance must be filed on or before April 11.

WAH PO SILK FASHION 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 New
Hon River Embroidery Limited for the winding up of Wah Po
Silk Fashion Company Limited.  A notice of legal appearance
must be filed on or before March 14.


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

PT HUMPUSS TERMINAL PETIKEMAS: Denials in asset sale
----------------------------------------------------
Inghie Kwik, a son of Coordinating Minister for Economy,
Finance and Industry Kwik Kian Gie, denied on Thursday
being involved in the sale of state assets to Hutchison
Port Holdings, as implied by Minister of Investment and
State Enterprises Development Laksamana Sukardi on
Wednesday.

Laksamana said Inghie could not be involved in the sale of
PT Humpuss Terminal Petikemas (HTP), which operates a
container terminal at Jakarta's Tanjung Priok Port, as the
company was among the thousands of debtor companies under
the management of the Indonesian Bank Restructuring Agency.
The minister asserted that therefore only IBRA had the
right to sell HTP.

Inghie, a director of Asset Management Group of Indonesia
argued, however, that HTP was not owned by IBRA but had had
its debts taken over by IBRA. He said that the agency
therefore only acted as creditor and not the owner of HTP.

"The right to sell HTP remains in the hands of its majority
owners, publicly listed PT Humpuss Intermoda Transportasi
and other minority shareholders," Inghie asserted.

Humpus Intermoda is controlled by Hutomo "Tommy" Mandala
Putra, the youngest son of former president Soeharto.
He also denied his company, Asset Management Group of
Indonesia, was acting as broker in negotiations for the
sale of HTP to Hutchison Port Holdings, a public company in
Hong Kong which operates 17 container terminals around the
world.

"The Asset Management Group of Indonesia is acting as a
consultant, not a broker, for Hutchison in the process of
acquiring HTP majority shares from Humpuss Intermoda,"
Inghie said.

He said his company in January officially briefed Laksamana
on Hutchison's plan to acquire HTP and on the role of Asset
Management Group of Indonesia as a consultant in the
proposed transaction.  Hutchison reportedly is interested
in acquiring Humpuss Intermoda's controlling shares in HTP
at a price of US$145 million.  He said HTP sales to
Hutchison would not only increase foreign investment in
Indonesia but would also contribute to improving container
port management in the country.

Separately, IBRA executive Eko Santoso Budianto said on
Thursday that any talks concerning the sale of Humpuss
Intermoda's stake in HTP were taking place between
prospective buyers and the management of the company, not
with IBRA, arguing that allegations that the younger Kwik
was involved in selling off state assets were baseless.

"We deal with the borrower; the owner of Humpuss Terminal
Petikemas can change, but the borrower remains the same,"
Eko was quoted by Dow Jones Newswires as saying.

Eko added that IBRA as a creditor was aware of the talks
between Hutchison and Humpuss.  IBRA, which manages over Rp
220 trillion (US$29.7 billion) in bad loans taken over from
state banks and banks closed down or taken over by the
government, has been hit with nationalistic opposition to
selling assets to foreign investors.

"Many people complain that IBRA is too slow in performing
its tasks, but this is the kind of thing that slows us
down," Eko added. (The Jakarta Post  03-March-2000)

PT TIRTAMAS COMEXINDO: Creditors to decide its fate soon
--------------------------------------------------------
Foreign and local creditors of PT Tirtamas Comexindo will
meet soon to decide the fate of the heavily indebted
general trading company.

Jamaslin Purba from Hotman Paris & Partners law firm, which
represents Tirtamas Comexindo, said here on Thursday the
creditors would vote on March 13 whether to approve the
company's debt restructuring proposal.  If the majority of
creditors reject the proposal to restructure the company's
US$400 million debt, the company will be declared bankrupt
and will face liquidation.

"We distributed the preliminary debt restructuring proposal
to all the creditors early this week and hope they view it
positively," said Jamaslin.

The Indonesian Bank Restructuring Agency -- representing
the now defunct Bank Tamara -- filed a bankruptcy suit
against Tirtamas Comexindo in December last year for its
failure to repay Rp 38 billion ($5.2 million) in matured
loans to the closed bank.  The courts then granted Tirtamas
Comexindo a suspension of payment -- known as a PKPU --
giving the company time to negotiate a debt restructuring
agreement with its creditors.

Tirtamas Comexindo is committed to repaying its debts and
will use all the proceeds from its collected receivables to
repay them, Jamaslin said.  In the 12-page preliminary debt
restructuring proposal, the company said its financial
difficulties resulted from the country's economic crisis
rather than mismanagement.

The company attributed its deteriorating balance sheet
mainly to fluctuations in the rupiah-dollar exchange rate
and high interest rates.

"Besides having to pay between 40 percent and 70 percent of
interest payments per annum, the company had to convert a
considerable amount of U.S. dollar debt into rupiah at
exchange rates then ranging from 10,500 to 17,000," the
proposal said.

According to the Tirtamas Comexindo balance sheet used as
the basis for the debt restructuring proposal, the company
had a total debt of $400 million as of December 1999.
The company's total assets stood at $234 million, of which
$121 million was in the form of account receivables. Of
this $121 million, the largest part was owed by Singapore-
based Indocemex Fibres Pte. Ltd. (ICF), whose debts to
Tirtamas Comexindo stood at $54.7 million.

ICF was declared bankrupt by the courts in Singapore in
late 1999.  "Tirtamas Comexindo has tried to collect from
ICF, but it did not receive satisfactory results. It then
got even worse when ICF was declared bankrupt in late
1999," according to the document.

Tirtamas Comexindo is part of the Tirtamas Group owned by
businessman Hashim S. Djojohadikusumo. (The Jakarta Post
03-March-2000)


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

ARABIAN OIL CO.: Drilling rights loss prompts cuts
--------------------------------------------------
Arabian Oil Co. (1603), whose drilling rights in Saudi
Arabia expired Feb. 27, has decided to reduce the number of
its Japanese employees from 340 to about 120, and is
considering pay cuts of about 20% for those who will
remain, company sources said Thursday.

As part of the plan, Arabian Oil will institute a voluntary
retirement program.  Despite losing the concession in Saudi
Arabia, Arabian Oil will continue to drill in Kuwait, where
its rights do not run out until 2003. Nevertheless, the
loss of the drilling rights will halve Arabian Oil's
revenue. As a result, the firm is engaging in a massive
effort to slim down so it can survive.

Arabian Oil has already closed its office in London and by
the end of March it will shutter its office in Riyadh.
After making those moves, the company's only overseas
office will be in Kuwait.  Arabian Oil had about 2,000
employees when its drilling rights in Saudi Arabia expired.
Of that total, 1,200 Saudi employees were shifted to a
subsidiary of state-run Saudi Aramco, which took over the
drilling operations when the rights ran out. (Nikkei  03-
March-2000)

ASAHI OPTICAL CO.: To post 3.5Bln Yen pretax loss
-------------------------------------------------
Asahi Optical Co. (7750) will suffer a pretax loss of 3.5
billion yen in the year through March, against 3.6 billion
yen in profit last year, the company announced Thursday.

The firm had projected a pretax profit of 100 million yen,
but has been hurt by declining sales of cameras, especially
in the U.S. and Europe, and information-processing
equipment. The yen's appreciation also hit profit.

Sales are seen falling 11% to 79 billion yen. Operating
loss is projected at 1.2 billion yen.  The company will
post a net loss of 9.8 billion yen after boosting reserves
to cover an 8 billion yen shortfall in retirement
allowances. It plans to pay a 3 yen dividend in the second
half.

On a consolidated basis, Asahi Optical projects a pretax
loss of 2.6 billion yen on sales of 110 billion yen, down
14%. Net loss is seen at 10.2 billion yen. (Nikkei  02-
March-2000)

DAIEI INC.: Facing net loss
DAIEI OMC INC.: Facing net loss
MARUETSU INC.: Facing net loss
-------------------------------
Daiei Inc. (8263), facing lower-than-expected pretax and
net profits, will scrap its plans to pay a 2.5 yen dividend
for the fiscal year ended Feb. 29, company sources said
Wednesday.

The major retail chain operator had hoped to restore a
dividend payout for fiscal 1999, but will end up paying no
dividend for a second straight fiscal year.

Hit by slumping sales amid intensifying competition and
anemic consumer spending, Daiei is expected to report
parent-only pretax profit of just over 1 billion yen,
essentially unchanged from fiscal 1998 and well short of
early projections for pretax profit of 5 billion yen.
Parent net profit is also expected to be flat at just over
1 billion yen.

Daiei saw jumps of around 20% in year-on-year sales at
existing stores in September and October of last year,
fueled by special promotions to mark the championship won
by its professional baseball team. But during other months,
existing store sales experienced downturns ranging from 5-
12%.

On a consolidated basis, Daiei could end up with a net loss
larger than the 22 billion yen projected earlier.  Daiei
group member Maruetsu Inc. (8178) is expected to show a
consolidated net loss of 16.5 billion yen as it writes
down the book value of Daiei shares in its portfolio.
Daiei OMC Inc. (8258), meanwhile, is expected to show a net
loss of about 58 billion yen on bad-loan write-offs.

The consolidated net loss posted by Daiei itself will
depend on extraordinary gains that it decides to book on
sales of shares in its portfolio. But the loss may break
above 30 billion yen, analysts say. (Nikkei  02-March-2000)

KYOCERA CORP.: To take special pension-shortage loss
----------------------------------------------------
Kyocera Corp. (6971) will post an extraordinary loss of 4.3
billion yen for the year ending March 31 to cover a
shortfall in its employee pension reserves, company sources
said Thursday.

Kyocera will use 5 billion yen earned from the sale of
shares in a U.S. information technology start-up firm to
cover the loss.  The write-off will not directly affect its
business, Kyocera said. (Nikkei  02-March-2000)

NIPPON LANDIC CORP.: Trust to forgive Y8.9B in loans
----------------------------------------------------
Japan's Chuo Trust & Banking Co. (8408) said Wednesday that
it will forgive loans worth Y8.91 billion it has extended
to failed Nippon Landic Corp., a nonbank affiliate of
defunct Long-Term Credit Bank of Japan.

Chuo Trust said it has already set aside loan-loss
reserves, adding that the debt waiver has no impact on its
earnings outlook for this fiscal year ending March. The
bank said Nippon Landic's special liquidation was approved
by the Tokyo district court Tuesday. (Nikkei  01-March-
2000)

SUMITOMO METAL MINING CO.: To post 12Bln Yen special loss
---------------------------------------------------------
Sumitomo Metal Mining Co. (5713) will post an extraordinary
loss of 12 billion yen in the year ending March to cover
costs incurred in Japan's worst nuclear accident at its
wholly owned subsidiary JCO Co. in September 1999, The
Nihon Keizai Shimbun has learned.

Sumitomo Metal will be liable for damages of about 10
billion yen from the Tokaimura accident. The firm will also
have to pay another 2 billion yen to help JCO cope with the
aftermath of the accident, including personnel costs.
Sumitomo Metal plans to sell securities and property to
cover the loss.

Sumitomo Metal will pay 5-7 billion yen in compensation for
settlements reached in 3,500 cases -- 70% of the total --
including those involving a local agricultural cooperative
and hotelier association. The company hopes to settle as
many of the remaining claims as possible by the end of
March.  Overall compensation costs are projected at 10
billion yen, including damages to be paid out in the next
term. (Nikkei  02-March-2000)

SUPER TOOL CO.: To record 1.18Bln Yen net loss
----------------------------------------------
Super Tool Co. (5990) has announced that it expects to
record a net loss of 1.18 billion yen in the current fiscal
year ending March 1, instead of a 15 million yen profit it
had earlier projected. In fiscal 1998, the company posted a
net loss of 903 million yen.

The downward revision resulted from extraordinary losses,
which include a loan-loss reserve of 720 million yen and a
365 million yen write-off of unfunded retirement
liabilities.

Super Tool, an industrial tool maker, now expects a pretax
loss of 70 million yen compared with the 286 million yen
loss posted the previous fiscal year. The company had
earlier predicted a pretax profit of 25 million yen, but
the sales-cost ratio rose 4 percentage points from fiscal
1998. (Nikkei  03-March-2000)

TODA CORP.: To book 17Bln Yen special loss
------------------------------------------
Toda Corp. (1860) plans to post an extraordinary loss of 17
billion yen for fiscal 1999 in part by writing off
unrealized loss on commercial real estate holdings, company
sources said Wednesday. Net profit is projected to remain
unchanged at 4 billion yen.

Under a new accounting rule that will come into effect from
next fiscal year, owners of commercial real estate are
required to record unrealized loss on property whose market
value has fallen below half its acquisition cost. But the
leading general contractor intends to dispose of the loss
before the new rule comes into force.

With Nishimatsu Construction Co. (1820) already announcing
it will dispose of a similar loss in fiscal 1999, Toda's
move is likely to further spur the financial rehabilitation
programs of other general contractors.

For the first half through September, Toda put up 75
billion yen worth of property for sale and posted a 12.2
billion yen investment in real estate development projects.
Though the company has been reassessing the value of these
properties, it estimates the total evaluation loss and real
estate development costs at about 17 billion yen.

For fiscal 2000, the firm aims to write off an
extraordinary loss on real estate used for its own
operations and cover part of its 19 billion yen pension
fund liability. It projects a total extraordinary loss
similar in size to that for the current fiscal year.
(Nikkei  01-March 1, 2000)

TOKYU CONSTRUCTION CO.: Share price has seriously fallen
--------------------------------------------------------
The share price of Tokyu Construction Co. (1855) has been
falling steadily since hitting its 1999 high of 148 yen in
May. By Feb. 15 it had fallen to 58 yen, below its 1999
low.

On Feb. 28, the company announced it would receive
financial help from its parent company, Tokyu Corp. (9005),
to help it deal with its paper losses on real estate
assets. That brought in some stock buyers, but most were
after short-term gains, and the stock made little upward
progress.

The company plans to take an extraordinary loss of 52.8
billion yen in fiscal 1999 to write off losses, mainly on
marketable real estate. To keep its balance sheet in the
black, it will accept 25 billion yen in assistance from
Tokyu and issue an additional 25 billion yen in shares to
the parent company. In June, it will cut its capital by 19
billion yen by converting some capital to capital reserves
to consolidate its losses.

In the coming fiscal year, it will have to market any
marketable real estate assets whose values have fallen by
more than half, and in essence it is making preparations
for that process.  Analyst Toshihiko Okino at Warburg
Dillon Read (Japan) Ltd. says, "Tokyu has shown its full
support, so investors can feel relieved."

But the assets Tokyu Construction is writing off this time
are only those whose values have fallen by more than half.
Those that have fallen 10% to 30% are still on its books.
In that sense, "There is still a lack of transparency about
how it will reduce its losses on fixed assets," says
analyst Atsushi Takagi of Morgan Stanley Dean Witter Japan.
It seems more time is needed before the stock can truly
recover. (Nikkei  03-March-2000)

TOYO INK MANUFACTURING: Canon sues over patent
----------------------------------------------
Canon Inc. (7751) said Wednesday that it has filed a suit
with the Tokyo District Court against Toyo Ink
Manufacturing Ltd. (4634) for patent infringement covering
the manufacture and sale of copy machine toners. Canon is
calling for a permanent injunction against any further
manufacture and marketing of the toners and has filed for
Y2 billion compensation for damages. (Nikkei  01-March-
2000)


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

CHO HUNG BANK: Daewoo collapse flames deficit
HANVIT BANK: Daewoo collapse flames deficit
JEONBUK BANK: Daewoo collapse flames deficit
KOREA EXCHANGE BANK: Daewoo collapse flames deficit
KWANGJU BANK: Daewoo collapse flames deficit
PEACE BANK: Daewoo collapse flames deficit
SEOUL BANK: Daewoo collapse flames deficit
---------------------------------------------------
Korean commercial banks posted a combined deficit of 4.99
trillion won (US$4.4 billion) last year mainly due to the
huge loss provisions for bad loans to the Daewoo Group, the
Financial Supervisory Service said Thursday.

In the operating sector, banks registered a combined profit
of 6.32 trillion won but had to take out loss provisions of
7.99 trillion won for heavy exposure to Daewoo, and 3.1
trillion won in accordance with tightened requirements on
asset classification.  The combined deficit, however, is
expected to surpass 5.6 trillion won if the deficit
incurred by Korea First Bank (KSE: 00110) of 600 billion to
700 billion won is included in the tabulation.

Korea First was not covered in the compilation of debts
this time because its insolvent assets are now being
transferred to the Korea Deposit Insurance Corp.  Seoul
Bank (02860) had the largest deficit of 2.23 trillion won,
followed by Hanvit (00030) with 1.98 trillion won, Korea
Exchange (04940) 802.8 billion won,
Cho Hung (00010) 698 billion won, Peace (KOSDAQ: 22870)
94.9 billion won, Kwangju 92.5 billion won and Jeonbuk
(06360) 500 million won.

Those earning a profit included Housing and Commercial
(27460) with 451.3 billion won, followed by Hana (07360)
with 144.8 billion won, Shinhan (15580) 113.1 billion won,
Kookmin (23130) 107.9 billion won, KorAm (16860) 50.3
billion won, Daegu (05270) 30.8 billio won, Kyongnam
(06610) 8.7 billion won, Cheju
(06220) 6.2 billion won and Pusan (02820) 5 billion won.

The combined assets of the banks totaled 511.79 trillion
won, up 0.3 percent from the previous year.  Assets for
Hanvit reached 83.2 trillion won, Koomin 82.5 trillion won,
Housing and Commercial 54.1 trillion won, Korea Exchange
53.1 trillion won, Cho Hung 49.1 trillion won, Shinhan 45.4
trillion won and Hana 41.7 trillion won.  (Asia Pulse  02-
March-2000)


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

BATONG BUHAY MINES: Inquiry sought into acquisition
---------------------------------------------------
An administration congressman has asked the House good
government committee to look into alleged irregularities in
the acquisition of Batong Buhay Gold Mines Inc. by its
former owner.

In Resolution 1404, Rep. Rolex Suplico (LAMP, Iloilo) said
Antonio Tankiang has re-acquired control of Batong Buhay
under highly-questionable circumstances.  During the Marcos
regime, Suplico said Tankiang, then principal shareholder
of Batong Buhay, defaulted on his loans with the Philippine
National Bank and Development Bank of the Philippines.

The default prompted the government, through the National
Development Co. (NDC), to take over the mining firm, he
said.  He added that to escape charges here, Tankiang fled
to the United States, where he allegedly befriended
Filipino expatriates who later became prominent
personalities in the Aquino administration.  The Batong
Buhay owner returned to the country after the 1986 Edsa
Revolution.

"He managed to regain control of Batong Buhay from the
Presidential Commission on Good Government (PCGG) without
the benefit of any contract," Suplico said.

In November 1988, he said Tankiang entered into a
memorandum of agreement with the Asset Privatization Trust
(APT) under which he agreed to pay P100 million and issue
P1.5-billion worth of Batong Buhay bonds payable in 15
years in exchange for full management and control of the
company.

"However, Mr. Tankiang has paid APT only P10 million out of
his commitment of P100 million and P1.5 billion in bonds,
while the APT continues to pay for the company's security
guards, insurance premiums, back wages and other expenses
which should have been paid by Mr. Tankiang," he said.

To add insult to injury, the Batong Buhay shareholder
"continues to resist Batong Buhay's prospective buyers,
depriving the government of much-needed revenues," Suplico
added. (The Philippine Star  03-March-2000)

MINDANAO PORTLAND CEMENT: Cement dumping brings huge losses
RIZAL CEMENT CO.: Cement dumping brings huge losses
TITAN CEMENT MFG.CORP.: Cement dumping brings huge losses
-----------------------------------------------------------
The deluge of dumped cement imports from Taiwan and Japan
has cost both the private sector and the government P10
billion in losses over the past two years, and industry
experts warned yesterday that annual losses would double
annually unless officials force importers to acknowledge
the legitimate price of the threatening products.

This was admitted yesterday by Department of Trade and
Industry (DTI) sources who underscored how dumped cement,
or products sold at prices much lower than their normal
value, have delayed the recovery of the cement industry.

Reacting to the submission of a formal anti-dumping
complaint by the Philippine Cement Manufacturers
(Philcemcor), the DTI officials said total industry losses
have almost doubled since two global cement giants --
Taiwan Cement Corp. of billionaire Jeffrey Koo and Japan's
Southern Cross Cement Corp. -- have been flooding the
market with products sold at just a third of the price in
their home countries.

"In addition to the P5.7 billion loss last year and the
P3.5 billion loss in 1998, you have to factor in government
earnings through income taxes, duties of raw materials, and
on other industry costs like power and project
development," the official said.

He placed the government income loss share at near P3
billion, stressing this was a "conservative estimate." The
official warned of greater -- and faster -- losses for
every month dumped import are allowed to flood the market.

"Loss, like earnings, tends to replicate itself," the
source said. "We're looking at P25 to P30 billion loss if
the market movement continues, and double that again in the
year after."

Already, he pointed out, three cement manufacturers --
Rizal Cement Co. Inc., Titan Cement Manufacturing Corp. and
Mindanao Portland Cement Corp. - have ceased production,
posting P442-million in losses.

The grave effect of dumping, the official said, is that
losers are not fly-by-night investors, or so-called "hot
money," but long-term investors who have already invested
billions of dollars into the Philippine economy.  These
include those who provided loanss for expansion activities,
shipping and freight companies, power firms and suppliers
of fuel.

Philippine cement companies have contracted $1.7 billion
(P69 billion) to meet the projected doubling of cement
demand every five years -- only to find themselves scaling
back production because of unfair competition from imports.
The current dumping the official warned, would also delay
or totally cancel the country's plan to become a regional
power in cement manufacturing.

The very cheap price of imported cement -- sold here at $20
a ton compared to the $60/ton prevailing price in Japan and
Taiwan -- have allowed foreign products to hog 10 percent
of the local consumer market.  In local terms, he noted,
Taiwan Cement has been undercutting Philippine products by
P5 to P7 per bag.

"If you consider that it was only one percent at the start
of last year, the full effect of destruction becomes
clear," said the government executive.  (The Philippine
Star  03-March-2000)

NATIONAL STEEL CORP.: SEC appoints receiver
-------------------------------------------
Pending deliberation on its rehabilitation plan, National
Steel Corp. (NSC) will have to turn over its assets,
properties and facilities to the interim receiver body
appointed by the Securities and Exchange Commission (SEC).

In an order released early this week, the SEC appointed a
three-member interim receivership body to "immediately take
charge of the assets, properties, and facilities of NSC in
accordance with Presidential Decree 902-A, and the rules of
procedure on corporate recovery."

Appointed are former SEC commissioner Monico V. Jacob as
chairman, and Guido Delgado, former National Power Corp.
president, and former NSC chief executive officer and
minister of Department of Science and Technology Antonio
Arizabal as members. Moreover, the commission also granted
the motion for intervention filed by mayor Franklin M.
Quijano, in behalf of his constituents in Iligan City.

Mr. Quijano, however, was not given the authority to vote
on the rehabilitation plan to be submitted by NSC. In an
earlier interview, Mr. Quijano said Iligan's economy is
highly dependent on NSC, and that the closure of the firm
has slowed down the City's economy, affecting the lives of
his constituents. (Business World  03-March-2000)

PETRON CORP.: Reports P500M loss
--------------------------------
Industry leader Petron Corp. said it lost P500 million in
the first two months this year as the cost of imported
crude oil continues to rise at prices. Latest reports show
that crude prices have gone up to $31 per barrel.

During a congressional hearing, Petron chairman and chief
executive officer Jose Syjuco Jr. said prices of local
petroleum products have risen only by 30 percent since last
year. On the other hand, the price of crude oil in the
Dubai spot market has grown by 146 percent.  As a result of
these losses, Petron was forced to rationalize its capital
expenditures for the year 2000.

"In the short term, we will continue rationalizing our
capital expenditures. The capital program already underway
will continue. In fact, the board already approved our
miscellaneous projects, which are small projects such as
replacing small assets," Syjuco said. (The Philippine Star
03-March-2000)

PHILIPPINE VETERANS BANK: Central bank puts on tight watch
----------------------------------------------------------
The Bangko Sentral (Central Bank of the Phils.) has placed
Philippine Veterans Bank (PVB) under close watch after
discovering a lapse in the commercial bank's internal
controls last year.

In a special examination conducted between September 17 and
October 8, the central bank discovered that a check
amounting to 15 million Philippine pesos (PhP) supposedly
remitted to the Board of Trustees of Veterans of World War
II (BTVWWII) was instead diverted to the personal account
of the bank's assistant manager, BusinessWorld sources
said.

The deposit transaction reportedly had the
"clearance/authority" of Florencio Z. Sioson, the bank's
executive vice-president and chief operating officer, and
the "approval" of chairman and then acting president Col.
Emmanuel De Ocampo.  Sought for comment, PVB spokesperson
Juan M. Gacad, Jr. described the incident as a "procedural
lapse".

However, he stressed the money is now "in the hands of the
institution where it should belong."

As evidence, Mr. Gacad faxed a letter from the BTVWWII,
signed by finance officer Rustica M. Escatron and executive
trustee Rene R. Garcia, attesting that the group has
already received the 20% share of PVB's 1999 net income.
This "includes the PhP15-million remittance" that
previously entered the personal account of the PVB
executive.

"We have looked into the matter. Appropriate replies were
given to the central bank. This was explained already by
management to the central bank. There is no feedback yet.
There may have been some lapses, but nothing untoward has
happened," Mr. Gacad said.  "The Bangko Sentral audits
banks and from time to time discovers exceptions. In the
procedure, there may have been some lapses," he added.

The incident was reportedly not the first in PVB, as Bangko
Sentral examiners had earlier uncovered a similarly
questionable handling of a PVB check for PhP1 million.
In the latest incident, PVB assistant manager Ricardo A.
Hilario was found to have deposited the PhP15-million
expense check into his own account with the bank last
August 19, 1999, the central bank's audit report said.

On the same day, Mr. Hilario withdrew the amount, PhP10
million of which is in the form of a manager's check.
The managers check was then deposited into Mr. Hilario's
personal account at the United Coconut Planters Bank
(UCPB).  Mr. Gacad said the culpability of those concerned
has yet to be determined. "They will be given due process,"
he said.

The PVB's charter mandates the bank to remit 20% of its net
income -- after deducting earnings of the preferred shares
-- to BTVWWII, the representative of Filipino World War II
veterans in PVB. There are 11 BTVWWII trustees.

"The usual procedure is that BTTWWII makes a written
request for advances/ shares from the PVB income. Once
approved, PVB credits the amount to the savings account of
BTVWWII. This procedure was not followed in the case of the
remittance by PVB of P15 million to BTVWWII last August 19,
1999," the Bangko Sentral audit report stated.

Bangko Sentral examiners also reportedly did not find any
resolution authorizing Mr. Hilario to receive the PhP15
million.  Meanwhile, Mr. Gacad said based on unaudited
financial statements, PVB's net income in 1999 drastically
declined to PhP99.32 million from PhP399.34 million in
1998.  This was despite the "slight" downtrend in expenses,
he said.

"Gross income was down. Business was bad. Nobody was
borrowing and depositors opted to go for high-yield
instruments. We expect to do better this year with the
economy improving," he said.

Meanwhile, at yesterday's board meeting, Godofredo Reyes
resigned as director of PVB. He was replaced by Jose Nu¤ez,
a son of a war veteran and the president of Diners Club,
Mr. Gacad said.  The board of directors has 11 members who
are either veterans of the war or sons of veterans, he
added.  (Business World  03-March-2000)

PILIPINO TELEPHONE CORP.: Parent to release P14.7B to it
--------------------------------------------------------
Telecom giant Philippine Long Distance Telephone Co. said
Wednesday it was finalizing a deal to secure P14.7 billion
in fresh capital from Nippon Telegraph and Telephone Corp.
of Japan by end-March or early April.

PLDT president Manuel Pangilinan said in a news conference
that NTT would release the money even if PLDT subsidiary
Piltel fails to reach a debt restructuring agreement.

"I think NTT has been very positive about this investment.
What's happening now is that there are ongoing closing
discussions with them. As far as I know, there are no major
issues between PLDT and NTT and First Pacific (Co. Ltd. of
Hong Kong)," he said.

NTT earlier said it would require PLDT to iron out the debt
problems of Piltel before it would place new money in PLDT.
Piltel said Wednesday it expected to restructure all its
debts by the end of the year.  The financially troubled
unit of PLDT made the disclosure to the Philippine Stock
Exchange as it announced that it was able to reduce its net
loss last year to P3.9 billion from P4.1 billion in 1998.

"We have made major strides in restructuring debt and hope
to complete the entire procedure by the end of the year,"
said Piltel president and chief executive officer Napoleon
Nazareno.

On Oct. 8, the company signed a memorandum of understanding
to restructure debt with its creditor banks.  The
agreement, which involves the conversion of 50 percent of
Piltel's loans to PLDT preferred shares, was intended to be
the basis for the restructuring of all of Piltel's debt.
Piltel has said it owed a third of its P34.9-billion debt
to creditor banks, a third to Japan's Marubeni Corp. and
the rest to bondholders.

Nazareno said his company was still negotiating separate
agreements with bondholders and Marubeni.  Pangilinan said
he expected these talks to end in 60 days.  He stressed
that as long as there was some form of agreement between
Piltel and its creditors and approvals from the Securities
and Exchange Commission, National Telecommunications
Commission and other concerned agencies, the deal would
proceed.

"I think they (NTT) are fairly happy with Piltel and that
they are comfortable with the options. Yes, it's go for the
deal," he said.  "Discussions with Marubeni are ongoing. I
guess we have to focus first on the banks and bondholders
before going into more serious discussions with Marubeni,"
he added. (Philippine Daily Inquirer  03-March-2000)

UNIWIDE GROUP: Landbank bucks revised rehab plan
------------------------------------------------
Land Bank of the Philippines (Land Bank), one of the
principal creditors of the Uniwide Group of Companies, is
objecting to the proposed amended rehabilitation plan and
wants its demands incorporated in the recovery program of
the retail and property firm.

Land Bank said the Securities and Exchange Commission (SEC)
should disapprove Uniwide's proposal which it said contains
unreasonable terms and conditions, among them:

* Setting of a cutt-off date for payment interest up to
June 30, 1999 and waiver of all penalties, which as a
consequence, the bank stands to lose as of February 2000,
P55.794 million in interest alone excluding penalties.

* The valuation made by Uniwide of the properties proposed
to be the subject of payment in kind or dacion en pago was
in great disparity with the valuation set by Land Bank's
internal appraiser. The total value of the properties was
valued at P878.049 million while Land Bank's appraisal was
pegged at P631.265 million or a difference of about P250
million.

Land Bank said that for the rehab plan to be feasible,
Uniwide should incorporate its conditions, such as: the
dacion en pago will be based on the average of the lower
appraisal value of the independent appraisers and Land
Bank's appraisal; interest and 50 percent of penalities
will be charged up to the date of delivery of titles to the
bank and the interests to be charged will be based on
prevailing interest rates.

Moreover, properties subject to dacion en pago will include
Manggahan, Pasig; Caloocan City and Corinthian Gardens.
Properties to be released will be Jaro, Iloilo City; Wack-
Wack and Cubao. These properties will be released against
the P270 million cash payment.

Land Bank also wants Uniwide to replace the Ternate, Cavite
property offered for dacion en pago with a commercial
property in Metro Manila acceptable to the bank and Uniwide
will offer additional properties to cover the dacion-
related expenses.  Other creditors of Uniwide have earlier
opposed the revised rehab plan. (The Philippine Star  03-
March-2000)

WESTMONT INVESTMENT CORP.: Hit by liquidity squeeze
---------------------------------------------------
With the BW Resources Corporation controversy still raging,
another scandal may yet hit the business sector.

BusinessWorld learned from various sources yesterday that
investment house Westmont Investment Corp. (Wincorp), a
wholly-owned subsidiary of listed firm Unioil Resources and
Holdings Co., Inc., has been experiencing liquidity
problems after investors started pulling out their
placements in the company.

"(Wincorp's) liquidity problems are ballooning out of
control," claimed an industry source.

The source said Wincorp's problems started last week when
Singaporean-controlled UOB Philippines, which late last
year took over Westmont Bank, abruptly terminated the
investment house's bills purchase line -- a short-term
funding facility used in check clearing operations.
Westmont Bank was, until recently, Wincorp's sister
company.

"Some 80 million Philippine pesos ($1.95 million at
PhP40.952=$1) in checks bounced when the (bills purchase)
line was suspended," the BusinessWorld source said.
"When the market heard about this, investors started pre-
terminating their placements," he added.

He described UOB Philippines' suspension of Wincorp's bills
purchase line as "like shutting down the respirator of an
already comatose patient."   A Wincorp officer confirmed
this, saying that "there were instances when payments are
not being made."

A ranking officer at UOB Philippines said the extension of
a credit line to Wincorp was "not brought to the attention
of the UOB management team" when the group took over the
bank last year.  Singaporean giant United Overseas Bank
Ltd. gained control of Westmont Bank on Nov. 21, 1999 after
putting in PhP3.3 billion ($0.081 billion) in exchange for
a 60% ownership.

"Since this was brought to UOB management's attention, we
have temporarily suspended the operation so that proper
documents and agreements between the two parties can be
made," the bank executive, who spoke on condition of
anonymity, told BusinessWorld.  "We would like to have
proper procedures in place to ensure that Bangko Sentral
(Central Bank) guidelines are followed," he added.

BusinessWorld tried but failed to reach Wincorp spokesman
Florencio Orendain, who is reportedly "out of town." Mr.
Orendain became the company's official spokesman only last
Monday.

The bank executive said Wincorp remains a client of UOB
Philippines since it has a deposit account with the bank.
He stressed, however, that the two financial institutions
are separate entities.

"We are two separate entities...Wincorp was related to
Westmont Bank. What Wincorp has with Westmont Bank is (now
a) thing of the past," he added.

UOB Philippines is 60% owned by United Overseas Bank.
Other major shareholders are Jollibee-owner Antonio
Tancaktiong, 19.97%; his brother William Tanuntiong,
12.98%; and Manta Ray Holdings, Inc., 7%.  The remaining
0.05% is owned by other local shareholders.  Wincorp,
meanwhile, is 100% owned by Unioil Resources, which was
formerly owned by ex-Finance Secretary Edgardo B. Espiritu.

As of March 31, 1999, its listed shareholders included Sta.
Lucia Realty Development, Inc., 20.30%; ACL Development
Corp., 20.30%; Pearlbank Securities, Inc., 20.30%; Ebecom
Inc., 12.18%; PCD Nominee Corp., 8.26%; Alfonso R. Reyno,
Jr., 8.12%; British firm Gridiron Ltd., 1.67%; and ROF
Management and Development Corp., 1.02%.

The UOB Philippines officer likewise stressed the bank has
no credit lines to Wincorp.  He said the local bank cannot
extend an unsecured credit line to Wincorp since the two
companies have a common director in John Anthony Espiritu,
son of the former Finance chief and a former Westmont Bank
president.

"I would like to categorically state that UOB never
extended any credit line to Wincorp. We cannot grant them
an unsecured credit line because it is DOSRI...We have a
common director in Mr. John Espiritu," he said.

Meanwhile, withdrawals from the bank arising from the
Wincorp issue were tempered after branch managers explained
to clients that UOB Philippines is a separate entity.
Wincorp also issued a statement by president Antonio T.
Ong, stressing that it is "not a subsidiary, affiliate nor
associate of United Overseas Bank (Philippines)."

"Wincorp does not have any major or substantial interest in
United Overseas Bank (Philippines). All transactions
between our funders and borrowers were offered and managed
solely by Wincorp," the statement said.

In related development, a UOB Philippines executive was
said to have been "suspended" because of Wincorp.
Officially, however, executive vice-president Rolando
Castro is on leave.

"This is internal policy. If there is anything at all any
of our officers have done...there should be an
investigation. We cannot prejudge people," the bank officer
said.

Traders from Binondo-based bank branches and investment
houses confirmed that the whole Chinese community was
"shell-shocked" by the series of events.

"We've been ordered by management to immediately pre-
terminate all our placements with Wincorp," one trader
said.

"Under no circumstances do we lend to them," added another.

The bills purchase line suspension was prompted by concerns
about Wincorp's asset quality, which declined significantly
after Westmont Bank allegedly transferred bad assets into
the investment house to make its books more attractive to
UOB, sources said.

This could not be independently confirmed.  Estimates on
the amount of funds involved vary.

"Some PhP4 billion ($0.098 billion) were tied up as of last
week," a source said.

Another, however, claimed that Wincorp's total loan
portfolio of PhP6.5 billion ($0.159 billion) is at risk if
it failed to find "emergency funding" to satisfy all
withdrawals.  "Or they can try to convince clients not to
pre-terminate their funds," he said.

Wincorp is not licensed by the Bangko Sentral to perform
quasi-banking operations, and is, thus, prohibited from
performing deposit-taking activities.  Thus, it is
effectively under the regulatory oversight of the
Securities and Exchange Commission.  Wincorp reportedly
used the facilities of Westmont Bank to collect investors'
fund placements.  Depositors often opt to put their funds
into higher yielding placements where the money is relent
to end users like corporate borrowers.


"Although they did not have a (quasi-banking) license, they
were basically operating like a bank accepting deposits,"
the source said.

He said Wincorp skirted the "19 lender rule" of the Revised
Securities Act -- prohibiting non-banks from collecting
deposits or investments from more than 19 clients -- by
collating all investments into a single account for
relending.

"The problem is that these 'certificates of participation'
are 'no-recourse' papers -- meaning that in the event of
default by the borrower, Wincorp is not obligated to
compensate its investors," the source added.

Meanwhile, Wincorp may have landed some of the juiciest
deals in town, but it eventually lost in the process.
It was instrumental in the sale of National Steel Corp. to
Malaysian firm Hottick Holdings Corp. by providing a
PhP1.5-billion ($0.037-billion) loan to help complete the
acquisition of 82.5% of NSC from another Malaysian firm,
Wing Tiek Holdings Berhad.

However, the deal was to be the subject of a legal battle
when Hottick was unable to pay its overdue obligations.
The loan agreement had a one-year repayment period with 17%
interest and a monthly penalty rate of 3%. Not a single
centavo has been paid to date.

In a dramatic turn of events, Wincorp was to be involved in
another controversial project -- the PhP9-billion ($0.22-
billion) Manila-Cavite expressway project -- as Westmont
Bank's investment arm tried to recoup the billions it lost
in the Hottick transaction.

Hottick primary investor Halim Saad also owns Malaysian
conglomerate Renong Berhad, which won the expressway
project during the Ramos administration.  With Hottick's
inability to pay, Wincorp asked the Manila Regional Trial
Court to issue a preliminary attachment on all the
properties of Mr. Saad.  The ruling is still being
contested by the Office of the Solicitor General.

Properties of interests include Hottick; UEM-Mara
Philippines Corp., the local firm which started to
undertake the expressway construction; and Renong Berhad's
rights and interests in the expressway and toll operations.
In effect, Wincorp wanted to collect toll fees from
motorists using the still-unfinished expressway to satisfy
the PhP1.5-billion ($0.037-billion) obligation of the
Malaysian group.

It argued that since Mr. Saad has interest in Renong
Berhad, its "rights, privileges, properties, interests and
obligations" should also be regarded as Mr. Saad's and vice
versa. (Business World  03-March-2000)


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

CH KARNCHANG: Posts annual loss
-------------------------------
CH Karnchange turned over a net loss of Bt2.89 million last
year, compared with Bt211.24 million net profit the year
before.  (The Nation  03-March-2000)

INT'L QUALITY ASSURANCE LAB.: Rehab to involve share buying
-----------------------------------------------------------
Premier Enterprise's board of directors authorised Premier
Capital 2000 Co Ltd, a wholly-owned subsidiary, to buy
additional shares of three other subsidiaries - Premier
Inter Leasing Co Ltd, in which PE holds 87.1 per cent
stake, Premier Brokerage Co Ltd and Premier LMS Co Ltd as
part of its structure reorganisation.

Premier Capital (2000) bought 10.455 million shares of
Premier Inter Leasing for Bt57.38 million, 29,994 shares of
Premier Brokerage for Bt8.48 million and 9,994 shares of
Premier LMS. The board also gave approval for Premier
Enterprise to sell its investment in International Quality
Assurance Laboratory Co Ltd to BVTS (Thailand) Co Ltd.

International Quality Assurance was classified as a non-
core business and its operational results have been
disappointing for several years, resulting in its
shareholders' equity plunging into negative territory at
Bt8.53 million. (The Nation  03-March-2000)

NTS STEEL GROUP: Posts wider annual loss
----------------------------------------
NTS Steel Group reported a Bt5.65 billion net loss in 1999,
higher than the Bt4.18 billion a year earlier.  (The Nation
03-March-2000)

PANJAPOL PULP INDUS.: Debt plan gets creditor backing
-----------------------------------------------------
Panjapol Pulp Industry Plc's creditors are likely to cast a
favourable vote for the company's Bt45.56 billion debt-
restructuring plan in its meeting next Thursday, said Wisit
Wisit-sora-At, executive-director of the Central Bankruptcy
Court's Business Reorganisation Office.

The optimistic prediction was based on the grounds that the
creditors at yesterday's meeting agreed with the
restructuring plan's principle, he said. Panjapol Pulp
Industry's restructuring was proceeding under the
supervision of the Central Bankruptcy Court.

The creditors yesterday did not vote on the plan because
Krung Thai Bank requested a delay after some creditors,
comprising of Bangkok Bank, BankThai, and the Revenue
Department and Excise Department, asked for minor changes.
Fifty-eight creditors holding Bt18.932 billion in debt were
at the meeting. There are 102 creditors, but it was
expected that some of them would settle their debts out-of-
court.

"Panjapol Pulp Industry sets a good precedent when talking
about business reorganisation because creditors and the
debtor have always talked to each otherabout the process,
resulting in an alignment. I think the court will take only
one day to make a ruling and then the plan will be able to
go immediately into action," Wisit said.

The company's managing director, Surapong Tejaviboon, said
the restructuring plan would gain a majority support from
the creditors as, so far, no one has objected.  He said
that the restructuring would involve a write down in
capital from Bt1.8 billion to Bt18 million to help write
off debts, and the conversion of management debts into
equity.

Debts owed to financial institutions would largely be
restructured via debt forgiveness and rescheduling the
repayment period, while debts due to state agencies and
trade creditors, worth Bt2 billion, would be repaid through
instalments. (The Nation  03-March-2000)

SUN TECH GROUP: Reports debt restructure progress to SET
--------------------------------------------------------
Sun Tech Group Public Company Limited, through Dr.
Chaiyaphon Horrunguang, President, reports on the debt
restructuring progress of the company.

For the first meeting of CDRAC voted on the Companys Debt
restructuring Plan dated on 29 February 2000, the Company
would like to inform that the plan was not sufficient for
committee approval due to lacking of details that cannot
meet their requirement.  Subject to CDRAC process schedule,
The Company and all related parties will amend the plan and
have the second vote on it at around 14 March 2000. (Stock
Exchange of Thailand  02-March-2000)

THAI PETRO.INDUSTRY: Claims a corporate conspiracy
--------------------------------------------------
Round one of Thailand's longest-running debt-restructuring
soap opera yesterday ended with executives of Thai
Petrochemical Industry claiming a conspiracy by creditors
to strip assets for their own gain.

The Central Bankruptcy Court yesterday opened the first of
three days of hearings on a petition to rehabilitate and
restructure the industrial giant's $3.4 billion debt.
Hundreds showed up for the hearing yesterday, touted as a
test case for Thailand's efforts toward bankruptcy reform
and corporate restructuring.

Viewers overflowed the courtroom, pressing officials to
open a second room and set up a closed-circuit television
screen for testimony.  Creditors and TPI remain deadlocked
after two years of negotiations.

TPI has challenged the need for rehabilitation, arguing
that it did not fall under the category of insolvency as
required by the bankruptcy law.  The company has also
protested against the petition of creditors to appoint
Effective Planner to implement the restructuring plan.

Wachirapunthu Promprasert, TPI chief financial officer,
accused five major creditors on the steering committee of
lobbying other financial institutions to cut credit lines
to the firm.  He also accused creditors of squeezing TPI to
sell off assets cheaply.

"Bangkok Bank, one of our largest creditors, has
demonstrated a lack of good faith," he told the court.
"We understand that there is a hidden relationship between
the bank and Effective Planner, a firm 99% held by Ferrier
Hodgson, which in turn is advising Bangkok Bank on
restructuring."

Mr Wachirapunthu said Ferrier Hodgson, in turn, was owned
partly by Chatri Sophonpanich, chairman of Bangkok Bank.
Allowing Effective Planner to implement the restructuring
could result in damage to TPI, he said, since the planner
could force the sale of assets to favour Bangkok Bank.
But Chartsiri Sophonpanich, president of Bangkok Bank,
firmly denied the charges.

"Neither Mr Chatri nor anyone else at the bank holds any
shares in Ferrier Hodgson," Mr Chartsiri said. Mr
Wachirapunthu alleged in court that one possibility was the
forced sale of TPI's gas-separation plant to HMC Polymer
and Bangkok Polyethylene, both downstream petrochemical
firms that now buy raw materials from TPI and are partly
owned by Bangkok Bank.

Selling off the separation plant would give HMC Polymer and
Bangkok Polyethylene lower production costs, benefiting
TPI's competitors in the petrochemical market.

"This kind of strategy Ferrier Hodgson has done in other
cases in Hong Kong," Mr Wachirapunthu said. "You can read
it through the Internet from the South China Morning Post.
Ferrier sold the assets of a borrower to a company
belonging to one of the creditors, even after Hong Kong's
appeals court ordered against this."

Bangkok Bank officials rebutted the allegations, saying TPI
was trying to paint creditors in a negative light to sink
the rehabilitation plan.  Mr Chartsiri said the bank had no
intention to takeover TPI assets.  Another Bangkok Bank
executive said debt for HMC Polymer had already been
restructured by the bank.

"Neither HMC Polymer or Bangkok Polyethylene has any need
to buy a gas separation plant. They can buy raw materials
from anyone."

The bank executive scoffed at the allegations, noting that
both HMC and Bangkok Polyethylene's plants were located
well away from TPI's facilities.  "It doesn't make sense at
all. There's no thought or need to invest in a gas
separation plant. A sugar miller has no need to plant his
own sugar cane, does he?"

Meanwhile, Mr Wachirapunthu said creditors were pressuring
TPI by pressing other banks to cut their credit lines.
A letter from the creditors' committee was sent to both
Bank of Ayudhya and Hongkong Bank, he said, asking both to
cut their lines in a bid to squeeze TPI's cash position to
gain an edge at the bargaining table.

Under the restructuring plan, debt will be rescheduled,
with some portion converted to equity. Failure to comply
with some conditions would give creditors the right to
raise their equity stake, taking control of the firm.

TPI also argues that cash flow projections under the
proposed plan are unrealistic, given uncertain tax expenses
and volatility in petrochemical prices. The company was not
insolvent, say sources, with asset values exceeding
liabilities by 28 billion baht. TPI shares closed yesterday
on SET at 10.25 baht, up 0.25, on 36.70 million baht
turnover. (Bangkok Post  02-March-2000)

THAI PETRO.INDUS.: Submits new plan;court delay to Mar.15
---------------------------------------------------------
Thai Petrochemical Industry Plc yesterday submitted a new
petition to the Central Bankruptcy Court for approval to
obtain a credit line of Bt7 billion from Bank of Ayudhya.

The petition faced immediate objection from five other
major creditor banks, including Bangkok Bank, International
Finance Corp, US Exim Bank, and Citibank.  The court will
today hold a hearing on this petition.

The court yesterday closed its hearing on the more
important petition on financial status of TPI. It will make
a ruling on Mar 15 whether the company, Thailand's biggest
corporate debtor, is insolvent or not.  If insolvent, the
court will proceed to determine if it should be
rehabilitated as petitioned by the creditors.

The lawyers representing creditors and the debtor company
will have a chance to submit their final statement to the
Court on Mar 9.  At yesterday's hearing, Malcom Terrence
Robinson, who is the managing director of Chase Manhattan
SEA, the TPI financial adviser, stated that the TPI assets
were sharply undervalued by auditing firm
PricewaterhouseCooper, which represents the 140-plus
creditor banks.

The undervaluation is as much as $1.2 billion resulting in
TPI's liabilities exceeding its assets. Robinson told the
court that the PricewaterhouseCooper valuation included
only the performing assets of TPI, but not the company's
other assets.  The court yesterday focussed on asset
valuation as it tried to determine the financial status of
TPI.

Robinson added in his testimony that the undervaluation is
evident when compared to the nature of industry. According
to the PricewaterhouseCooper valuation, TPI's assets are
only $2.4 billion compared to $3.6 billion in the Chase
Manhattan valuation.  According to the Chase method,
valuation is based on cashflow and present value of the
company. As a result, TPI is not yet insolvent since its
assets of $3.6 billion are still greater than the
liabilities of $3.47 billion as claimed by the creditors.

On the debt restructuring plan as petitioned by the
creditors, Robinson said, servicing the debt of more than
$3.4 billion is beyond the company's ability in terms of
revenue generation. The financial advisor has recommended
the disposal of non-core assets or find new partners and
recapitalise to bring down the debt to about $2.5 billion.

Robinson said the company is still a going concern and will
benefit from the uptrend of petrochemical industry in the
next 5 years.  Three other witnesses also testified
yesterday, the second day of hearing on the debtor company
side, namely, Norawat Suwan, former director-general of
Commercial Registration Department, Dr Vivat Vitoonpien, a
financial officer of TPI, and Thammasak Panyowatanakul, an
accountant of TPI,

TPI is fighting for a claim that it is still not insolvent
and therefore is not qualified to undergo the debt
restructuring plan as petitioned by the creditors.  There
were also cross-examination from lawyers representing the
creditors on the question of solvency.  Creditors have
petitioned that TPI is insolvent and has stopped debt
service for more than 2 years.

Prachai Leopairatana, the chief executive of TPI, was not
present at yesterday's hearing.although he earlier planned
to do so.  On Wednesday Mar 1, the court heard 3 witnesses
from the debtor side.  On Feb 14-15, the court heard 10
witnesses from creditors.

A creditor source said the world is closely watching the
TPI case and expects to see a logical end, adding that the
final outcome will have to be fair, reasonal and
independent.  Since Feb 1999, the debtor company has been
using tactics to derail the debt restructuring process as
sought by creditors. The source said Thailand's national
interest is most important in this case, not the interests
of individual shareholders or of a company.

The operation of TPI will not be shut down even if the
current major shareholders, led by Prachai are not around.
The source accused Prachai as going back on his words after
agreeing to the terms and conditions of a debt workout plan
in early 1999.  Given the significance of this case, a
court ruling is expected to be reasonable and explainable.
The source said there should be no further delays of a
final decision since this case has been unsettled for more
than 2 years already.  (The Nation  March 3, 2000)

THAI TEL.AND TEL.: B38bn debt workout approved
----------------------------------------------
Creditors last night accepted a 38-billion-baht debt
restructuring plan for Thai Telephone and
Telecommunications.

In a vote at the Bank of Thailand, creditors representing
nearly 99% of all debt approved the plan.  The
restructuring plan calls for seven billion baht owed to
subsidiaries and shareholders such as Jasmine
International, Italian-Thai and Loxley to be converted to
TT&T shares.

The share swap would increase Jasmine's stake in TT&T to
30% from 20%, making it the largest shareholder.  Debt
would be swapped for equity at 10 baht, or TT&T market
prices, whichever is lower, said Witit Sujjapong, TT&T
executive vice-president.  Another 31 billion baht in debt
will be restructured in three lots.

First will be 19 billion baht, paid over 12.5 years with a
two-year grace period. Interest rates will be set at
minimum lending rates plus 0.75 percentage points, or Libor
(London Interbank Offered Rate) plus 1.75 points for
foreign currency debt.  A second lot of six billion baht
will be repaid over 14 years, with a 5-6 year grace period.

Last is six billion paid over 17 years, with a 14-year
grace period. Interest is set at either MLR minus one point
or Libor.  Creditors, the largest being Sumitomo Bank, will
decide among themselves how to split their claims among the
three lots.  The restructuring plan calls for TT&T to raise
five billion baht in new capital within 2.5 years, with
three billion to repay creditors and the rest used for new
investment.

TT&T still has to negotiate settlement of another six
billion baht in debt with trade creditors and the Telephone
Organisation of Thailand, which controls the company's
fixed-line concession.  Shares of TT&T on the Stock
Exchange of Thailand closed at 11 baht yesterday, up 1.8
baht, on heavy turnover worth 127.85 million baht.

TT&T holds a build-transfer-operate concession from the
Telephone Organisation of Thailand to operate 1.5 million
fixed lines in provinces outside Bangkok.  The company has
completed installation of all the lines, and currently has
around 1.2 million subscribers. Under its concession, the
firm pays 43% of its revenue to the Telephone Organisation
of Thailand.

TT&T posted 1999 losses of 2.5 billion baht, compared with
profits of 846 million the year before. Revenue last year
totalled 6.23 billion baht, slightly higher than the 6.17
billion posted for 1998.  The company had 52 billion baht
in assets at the end of December.

The next move will be to submit the plan to the Central
Bankruptcy Court to show that all creditors agree with the
plan. In doing so, the creditors who oppose the plan will
have no right to force bankruptcy on the company.  (Bangkok
Post, Business Day  02-March-2000)

THAI TEL.& TEL.: NTT West's Thai affiliate reschedules debt
-----------------------------------------------------------
Thai Telephone & Telecommunication (TT&T) said Thursday it
has agreed with Sumitomo Bank (8318) and other major
lenders to settle the repayment of its 38 billion baht
debt.

The phone company, an affiliate of Nippon Telegraph and
Telephone West Corp., will swap 6.8 billion baht of debt
for its shares, and repay the rest over 12 to 17 years.
As a result of the rescheduling of repayments, the stake
held by NTT West is expected to fall from 18% to 15%, while
that of local firm Jasmine International PCL will rise from
20% to 30%.

TT&T operates a fixed-line phone service outside Bangkok.
The company defaulted on its debt repayments following the
currency crisis which hit Southeast Asia in 1997. (Nikkei
02-March-2000)

THAI TEL.AND TEL.: Becomes target after restructuring
-----------------------------------------------------
Thai Telephone and Telecommunication has become a prime
acquisition target for a host of telecom companies
following an agreement with its creditors on a $1.2bn debt
restructuring plan.

Bankers said on Thursday that TTNT, the private operator of
fixed-line telephone services in Thailand's provinces,
would be a potential target of both local and foreign
operators following the agreement in principle.

The debt restructuring plan calls for Bt30.85bn (US$815m)
of outstanding debt to be repaid over a period of 12-17
years, with generous grace periods for part of the amount.
The remaining Bt13.5bn will be paid off at varying
discounts or converted into equity by some of the company's
subordinate creditors, who are also major shareholders.
These include Thai companies Jasmine and Loxley, as well as
Japanese telecom giant NTT.

As part of the agreement, TTNT has promised to raise Bt5bn
in new equity within the next 30 months. The new shares
will be offered to a "strategic partner" and a portion of
the new funds will be used for debt repayments or
repurchases.

Bankers said this clause requiring an injection of new
funds, combined with the financial problems of some of the
major existing shareholders, meant that TTNT would soon be
looking for a new controlling shareholder.

"Basically the debt restructuring agreement was a face lift
for the company and now it will try to look for a groom who
likes the new look," said Andy Chan of ING Barings in
Bangkok.

Among the possible suitors mentioned are two Thai telecom
companies, TelecomAsia and Shin Corp. TelcomAsia operates
fixed-line telephone services in the Bangkok metropolitan
area and controls Thailand's only cable television
operator. It recently bought a defunct mobile network
licence and, following its own debt restructuring agreement
last year, has been hugely successful in introducing a low
cost Japanese-type handy-phone service.

Shin Corp is the dominant shareholder of the country's top
mobile network operator and only satellite service. The
company, which is cash-rich and contemplating a US stock
market listing, has been making a number of acquisition
bids lately, including a failed one for TTNT before the
latter's debt restructuring agreement.

Industry analysts said foreign telecom companies interested
in TTNT would have to contend with the large shareholding
already held by NTT, which has given no signs that it is
willing to give up its stake in the company or take it over
outright.

TTNT is in the middle of protracted negotiations with the
Thai government over how to reduce the portion of its
revenue, currently 43 per cent, which it must pay to the
state-owned Telephone Organisation of Thailand. The company
will be extremely difficult to value until these
negotiations are completed, analysts say. (Financial Times
02-March-2000)


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