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     T R O U B L E D   C O M P A N Y   R E P O R T E R

                           A S I A   P A C I F I C

           Tuesday, March 7, 2000, Vol. 3, No. 46

                                    Headlines


* A U S T R A L I A *

BROKEN HILL PROPRIETARY CO.: Settlement of claim reported
GOODMAN FIELDER LTD.: Considering overseas expansion
RECKON: Loss-maker looks to GST-led recovery
TELSTRA: To launch first of several debt issues


* C H I N A  &  H O N G  K O N G *

ASCEND DYEING WORKS LTD: Facing winding up petition
C&A PETROLEUM TRANSPORTATION: Facing winding up petition
CHIT LEE HOLDINGS LTD: Facing winding up petition
CIL HOLDINGS LTD: Reports on winding up action to HKSE
FAR EAST WAGNER CONSTRUC.LTD: Facing winding up petition
HAPPY FIX INDUSTRIAL LTD: Facing winding up petition
JIN JUA XIN INT'L CO.LTD.: Facing winding up petition
JOIN WIND INVESTMENT LTD: Facing winding up petition
NEWSNET FAR EAST LTD: Facing winding up petition
OLS INT'L LTD: Facing winding up petition
PEREGRINE INVEST.HLDGS.: Dividend set for unsecured creds.
SHEEN GLORY ENGINEERING LTD: Facing winding up petition
THE COLERIDGE GROUP LTD: Facing winding up petition
TIME MERIT INT'L LTD: Facing winding up petition
TOP CHINA TEXTILE CO.LTD: Facing winding up petition
VITRON ELECTRONICS CO.LTD: Facing winding up petition
YETSUN TRADING LTD: Facing winding up petition


* I N D O N E S I A *

PT BANK BALI: Seeks approval of rights issue
PT CENTRALINDO PANCA INVESTAMA: Consortium takes over debt
PT KASOGI INT'L: Reports rehab progress to JSX
PT TIRTAMAS COMEXINDO: Creditor meeting Mar.13 on rehab


* J A P A N *

DAIEI INC.: To unveil revised business plan in April
LONG-TERM CREDIT BANK: Seeks 240Bln Yen in public funds
MYCAL CORP.: S&P lowers corporate rating
NIHON KOGYO CO.: To end production,sales of loss-makers
NISSHIN ELECTRONICS SVC.: To write-off pension shortfall
TOHO MUTUAL LIFE INS.: GE Capital takes over


* K O R E A *

DAEWOO GROUP: Creditors warned against fresh-funds delay
DAEWOO MOTOR: Car sales suffering on sell-off
DAEWOO MOTOR: Ford to start due diligence
KOREA ELEC.POWER CORP.: Borrowings could soar this year
SAMSUNG MOTOR: Sales price gap reaches W500Bil.
SAMSUNG MOTOR: Renault in final negotiations


* M A L A Y S I A *

BESCORP BHD.: PDN appoints special administrator
HICOM GROUP: Relief over DRB-Hicom group merger
HSBC HOLDINGS: Posts wider annual loss
WOO HING BROTHERS BHD.: PDN appoints special administrator


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

PETRON CORP.: Analysts say "avoid" buying stock for now
PHILIPPINE NAT.BANK: Gov't to open PNB block sale to L.Tan
UNIWIDE GROUP: French parent plans provincial expansion
WESTMONT INVESTMENT CORP.: BSP probing investment firm


* T H A I L A N D *

SUBMICRON TECH.: Completes preliminary debt-rehab plan
THAI PETRO.INDUS.: Split decision in court battle
THAI TEL.& TEL.: Plans to sell 5Bn baht worth of shares
THAI TEL.& TEL.: Rehab's done, merger/new partner next?


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

BROKEN HILL PROPRIETARY CO.: Settlement of claim reported
---------------------------------------------------------
The Broken Hill Proprietary Company Limited (BHP), through
Dr Robert Porter, Vice President Investor Relations advises
that following approval by the US District court and the
expiration of the appeal period, the settlement of the
complaint brought against BHP by the State of Hawaii has
now been completed.

The completion of the settlement, which was originally
announced on 23 November 1999, has resulted in the
dismissal of BHP from the antitrust law suit brought
against a number of oil companies by the State of Hawaii.
The lawsuit alleged antitrust breaches relating to the
Hawaiian gasoline market. BHP Petroleum sold its Hawaiian
business interests in 1998.

"I am pleased that this settlement has been concluded,"
said BHP Petroleum President Philip Aiken. "It is a
satisfactory outcome and removes a distraction from our
core business activities."  (Australia Stock Exchange  03-
March-2000)

GOODMAN FIELDER LTD.: Considering overseas expansion
----------------------------------------------------
Goodman Fielder Ltd is considering expanding its
ingredients business overseas in an attempt to give the
troubled operation more critical mass and the ability to
better withstand volatile industry conditions.

Goodman Fielder's chief executive, Mr David Hearn, told The
Australian Financial Review the group was looking at
opportunities to add to the ingredients division, either
through acquisitions or joint ventures and alliances in the
US and Europe.

He said the business was spread out all over the world and
it was clear the company had to build the business if it
were to achieve more stability.  Mr Hearn was not sure how
much Goodman would spend and said some expansion options
might not involve cash.

"I don't know if it's a money issue at the moment," he
said. "The real issue is finding the right opportunity and
finding a way to see it happen."

Food analysts and funds managers have questioned whether
Goodman should sell the ingredients division in light of
its poor performance in the first half of 1999-2000 and its
flat performance last year.  The division was one of the
few disappointments in Goodman's latest interim results,
with earnings before interest and tax falling by 23 per
cent and sales by 4.4 per cent. The second half is expected
to be worse.

The division has the lowest returns of any at Goodman, with
EBIT to sales margins of 7.2 per cent and return on funds
employed of 6.6 per cent, compared with 14 per cent for
milling and baking and 20 per cent for the international
division.

Goodman had high hopes for the division 18 months ago when
it took full control of the Hormel Foods gelatin joint
venture in the US, becoming the largest edible gelatin
manufacturer in the world. But the business has failed to
live up to expectations and in the latest half year it was
battered as an industry-wide oversupply of gelatin forced
prices to historically low levels.

Mr Hearn does not believe the business should be sold - at
least not until Goodman has explored its options and tried
to rectify its problems.  As a first step, Goodman plans to
move the division's headquarters from North Ryde to the US
this year so that it is closer to its markets and
customers.

"The ingredients business does have some relationship to
some of our other core businesses," Mr Hearn said. "But
having said that, it's clearly different and at the moment
we're experiencing quite a lot of difficulties with it.
We have to see our way through those first before we decide
some of the more long-term questions about how we develop
it and whether we should own it.

"The ingredients market is full of companies that are used
to, and interested in, forming joint ventures or alliances,
so there may be opportunities to look at forming some of
those.  We have a very attractive business base in the
sectors in which we compete. Our specialty starch business
is very attractive, our Hi-maize business is a genuine
world-leading business with patented developments that are
really innovative and attractive to other people around the
world.

"We're a market leader in edible gelatin around the world
and our specialty dairy ingredients business has a leading
position in the US."

Mr Hearn believes the latest half-year results should put a
floor under Goodman's share price, which has fallen to the
levels prevailing before he joined the company in 1995.
However, a strong recovery was unlikely because world food
stocks were out of favour with investors and a re-rating
would not occur quickly. (The Australian Financial Review
06-March-2000)

RECKON: Loss-maker looks to GST-led recovery
--------------------------------------------
Accounting software firm Reckon said it expects to gain an
"excellent opportunity" from the introduction of the GST
after posting a net loss of $7.76 million for its first
full financial year ended 31 December 1999.

This follows on from a net loss of $2.98 million for the
six months ended 31 December 1998.  The company's sales
revenue was boosted to $19.93 million from $7.7 million in
the previous period.  Despite the nest loss, Reckon chief
executive officer Greg Wilkinson said today the company had
experienced strong underlying growth in its business.

"Sales of financial software and services increased by 110
per cent over calendar year 1998 and the online business
made excellent progress in customer acquisition," he said.
"These will provide a solid base for future growth."

The company added that sales of software products exceeded
expectations in its software division, with QuickBooks and
QuickPayroll products increasing sales by 191 per cent and
175 per cent respectively.  It added that its online
division is also gaining customers at a rapid pace with web
site visits totalling 6 million visits a month.

"Online revenues fell below projections largely as a result
of delays in launching transaction services including
mortgage and car insurance," the company said.  "The bottom
line was significantly better than expected."

Reckon expects that the introduction of the GST on 1 July
2000 will provide opportunities for its business.

"Our products are GST ready and being promoted by powerful
distribution partners such as Commonwealth Bank, Express
Data, CCH, Keycorp and the country's leading point of sale
peripheral suppliers," Wilkinson said.

Reckon added that its interactive GST CD-ROM developed with
the Commonwealth Bank, CCH and Gang of Four, which was
launched two weeks ago, would allow a user to answer a
questionnaire about their business and receive a tailored
GST transition strategy.  The company's online joint
venture with AsiaOne, the online subsidiary of Singapore
Press Holdings, would provide "instant recognition and
credibility for our Quicken brand throughout Asia," the
company said.

"AsiaOne already attracts 1.3 million page views per day,
this brand recognition should provide significant spin offs
for our software sales (which are not part of the joint
venture) in the region," it said.  "These initiatives are
expected to (also) significantly enhance the branding and
growth of both software and online services in 2000."  (IT
Daily News  06-March-2000)

TELSTRA: To launch first of several debt issues
-----------------------------------------------
Telstra said it plans to launch this month the first of
several major debt issues in the domestic bond market.

The launch is expected shortly after presentations to
investors in Sydney and Melbourne on March 16 and 17.
Details of the structure have yet to be finalized, but
Telstra said it will be a liquid benchmark bond to mark its
re-entry to the domestic market after an absence of four
years. Commonwealth Bank of Australia and Westpac Banking
Corp. are joint lead managers of the issue.

A spokesman for Telstra said the issue could be for a
minimum of A$500 million (US$308 million), but "probably
larger than that if demand is as high as expected." He
added that it could be as large as A$1 billion. A maturity
of 10 years is expected. (The Asian Wall Street Journal
02-March-2000)


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

ASCEND DYEING WORKS LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 22 on the petition of The
Hongkong and Shanghai Banking Corporatin Limited for the
winding up of Ascend Dyeing Works Limited. A notice of
legal appearance must be filed on or before March 21.

C&A PETROLEUM TRANSPORTATION: 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
Leong Hon Sum for the winding up of C&A Petroleum
Transportation Limited. A notice of legal appearance must
be filed on or before March 28.

CHIT LEE HOLDINGS 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 The
Hongkong and Shanghai Banking Corporation Limited for the
winding up of Chit Lee Holdings Limited. A notice of legal
appearance must be filed on or before March 28.

CIL HOLDINGS LTD: Reports on winding up action to HKSE
------------------------------------------------------
CIL Holdings Limited, through Joseph Szeto, Chairman and
Managing Director, provides update information on the
development of the legal action referred to in our
announcement dated 4th January 2000.

We refer to our announcement dated 4th January 2000
concerning the purported winding up petition alleged to be
taken by Lo Sing Pan ("Mr. Lo") a former director of CIL
Holdings Limited (the "Company").

The Company do confirm that Mr. Lo filed a Petition for
Winding Up (High Court Companies winding Up Proceedings No.
1161 of 1999) against the Company on 30th December 1999
which was received by the Company on 5th January, 2000.

Mr. Lo and the Company through correspondence between their
solicitors agreed on 29th February, 2000 a new payment
schedule whereby the outstanding amount of HK$6,627,909.02
(including interest calculated up to 30th June 2000 at 20%
per annum) shall be repaid by four monthly instalments with
31st March 2000 being the first of such instalments and
30th June 2000 being the last of such instalments.

Mr. Lo has through his solicitors agreed in writing on 29th
February 2000 to apply for an adjournment of the original
date of hearing of the winding up petition from 15th March
2000 to 15th April 2000 pending performance of the new
payment schedule.

We are confident that the winding up petition will be
settled without a winding up order being made. Since the
outstanding amount is relatively small and the directors do
not foresee any problem with meeting such payments from the
Company's contract revenue, we confirm that the winding up
petition will have no adverse impact on the operations
and/or financial affairs of the Company.

In the meantime, investors are advised to exercise caution
when dealing in the shares of the Company. (Hong Kong Stock
Exchange  03-March-2000)

FAR EAST WAGNER CONSTRUC.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
Interform (Interior & Marble) Co. Limited for the winding
up of Far East Wagner Construction Limited. A notice of
legal appearance must be filed on or before April 4.

HAPPY FIX INDUSTRIAL 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 AIG
Finance (Hong Kong) Limited for the winding up of Happy Fix
Industrial Limited. A notice of legal appearance must be
filed on or before April 4.

JIN JUA XIN INT'L CO.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 The
Hongkong and Shanghai Banking Corporation Limited for the
winding up of Jin Jua Xin International Company Limited. A
notice of legal appearance must be filed on or before March
28.

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

NEWSNET FAR EAST 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 Lau
Yat Fung for the winding up of Newsnet Far East Limited. A
notice of legal appearance must be filed on or before March
28.

OLS INT'L 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
Canton Curtain Wall Engineering Limited for the winding up
of Ols International Limited. A notice of legal appearance
must be filed on or before March 28.

PEREGRINE INVEST.HLDGS.: Dividend set for unsecured creds.
----------------------------------------------------------
The liquidators of Peregrine Investments Holdings Ltd.
declared the first interim dividend for its unsecured
creditors, saying they would receive a higher-than-expected
7.5 Hong Kong cents on the dollar.

In addition, all preferential creditors of Peregrine will
be paid in full, said PricewaterhouseCoopers's David Hague,
speaking on behalf of the company's liquidators in Hong
Kong and Bermuda.

"The total amount of cash that will be paid out in respect
of the first interim dividend is in the vicinity of HK$1.3
billion (US$167 million) to some 210 creditors," Mr. Hague
said.

He said this amount included a provision for future payment
to unsecured creditors whose claims arise under
International Swap Dealers Association master agreements.
Such claims have been held pending the resolution of
valuation issues, which are expected to be determined by
courts are expected to be determined by courts in the U.K.,
he said.

Mr. Hague said the amount of the first interim dividend was
based on higher-than-expected dividend payments from both
Peregrine Fixed Income Ltd., which is in liquidation, and
Peregrine Derivatives Ltd., also in liquidation, to the
holding company in August and November 1999.

PricewaterhouseCoopers said liquidators still estimate the
total dividend to be 10 to 25 on the dollar.  The
liquidation of the Peregrine group of companies is one of
the largest and most complex liquidations in Hong Kong's
corporate history. At the time o its collapse in January
1998, the Peregrine group had estimated gross liabilities
of HK$35 billion. (The Asian Wall Street Journal  02-March-
2000)

SHEEN GLORY ENGINEERING LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 15 on the petition of
goodways Building Materials Trading Limited for the winding
up of Sheen Glory Engineering Limited. A notice of legal
appearance must be filed on or before March 14.

THE COLERIDGE GROUP LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 22 on the petition of
Choy Tau Mo Harris for the winding up of The Coleridge
Group Limited. A notice of legal appearance must be filed
on or before March 21.

TIME MERIT INT'L LTD: Facing winding up petition
------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 22 on the petition of
Chow Kam Ho for the winding up of Time Merit International
Limited. A notice of legal appearance must be filed on or
before March 21.

TOP CHINA TEXTILE CO.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 Tam
Suk Ling for the winding up of Top China  Textile Company
Limited. A notice of legal appearance must be filed on or
before March 28.

VITRON ELECTRONICS CO.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
Vitron Electronics Pte. Limited for the winding up of
Vitron Electronics Co. Limited. A notice of legal
appearance must be filed on or before March 28.

YETSUN TRADING LTD: Facing winding up petition
----------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing for March 22 on the petition of
Tsoi Wai Hung for the winding up of Yetsun Trading Limited.
A notice of legal appearance must be filed on or before
March 21.


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

PT BANK BALI: Seeks approval of rights issue
--------------------------------------------
To meet the requirements of a rights issue, Bank Bali
(JSX:BNBL) has applied for registration at the Capital
Market Supervisory Agency (Bappepam) on Thursday.

According to deputy chairman of the Indonesian Bank
Restructuring Agency (IBRA) Jerry Ng, in the forthcoming
rights issue, preemptive rights are open to all parties who
meet Bappepam's requirements.  The government, through
IBRA, acts only as a stand-by buyer, he said, adding
that the cost to recapitalize Bank Bali has increased to
Rp4.6 trillion (US$613.3 million).

"The recapitalization cost has increased due to several
reasons," Jerry said.

The first reason is the increase in reserves due to a drop
in assets, which reached about Rp400 billion. The second is
a loss for the period of February to April 2000, projected
at approximately Rp200 billion.  "IBRA expects a smooth
rights issue," he said.

A Bank Bali management team is required to meet all the
conditions set by the capital market authorities, Jerry
said, adding that the rights issue was expected to improve
bank restructuring.

The bank was taken over by the IBRA in July last year after
shareholders failed to raise the bank's capital adequacy
ratio (CAR) to the minimum level of four percent.  The
recapitalization cost of Bank Bali has increased to Rp 4.6
trillion.

The rights issue plan, initially scheduled for October,
last year, has been delayed several times following the
high-profile scandal surrounding the channeling of funds
out of Bank Bali for political purposes, and the withdrawal
of would-be investor Standard Chartered Bank.

SCB was allowed to buy a 20 percent stake in Bank Bali from
the government after the rights issue but decided to
withdraw its bid due to opposition from the bank's
employees.  Bapepam also refused to approve Bank Bali's
rights issue plan due to inadequate disclosure of
information related to owners of shares held by foreign
institutions.

Bapepam contended that Bank Bali and IBRA failed to provide
necessary details about the owners of about 40 percent of
the bank's shares currently held at Deutsche Boerse
Clearing AG (DBC) of Germany.  Bapepam chairman Herwidyatmo
said early this week that the rights issue could go ahead
even without the disclosure of the owners of the bank's
shares kept by the German company.

"But undisclosed owners will have no voting rights during
the planned shareholders meeting," he added.  (Asia Pulse
03-March-2000, The Jakarta Post  04-March-2000)

PT CENTRALINDO PANCA INVESTAMA: Consortium takes over debt
----------------------------------------------------------
A consortium headed by Bhakti Investama (JSX:BHIT) has
taken over the debts of Indonesia's PT Centralindo Panca
Sakti (CPS), a multimedia and telecommunication company,
amounting to $ US35 million to Chase Manhattan Bank.

Rudy Tanoesoedibyo, a commissioner of Bhakti Investama,
which is partly owned by US fund manager George Soros, said
the takeover was signed with Chase Manhattan Bank on
February 29, 2000.  The collateral for the debts include
CPS's 100% stake in PT Centralindo Panca Sakti Cellular
(CPSC), which is the majority shareholder of PT Metro
Selular Nusantara (Metrosel).

Rudy said the debt takeover was part of an investment
strategy of the consortium to focus on the
telecommunications and multimedia sector. He said the
consortium planned to invest additional funds of US$ 20
million for business expansion through CPS in cooperation
with PT Mitrasari Persada, the majority shareholders of PT
Surya Citra Televisi (SCTV), Indonesia's second largest
television broadcasting company.  Soros, through Bhakti
Investama, has also sought to acquire a number of other
finacially troubled Indonesian companies.  (Asia Pulse  03-
March-2000)

PT KASOGI INT'L: Reports rehab progress to JSX
----------------------------------------------
Fulfilling the information disclosure to the Public and as
implementation of the financial restructuring of PT Kasogi
Internasional Tbk, PT Kasogi Internasional Tbk, Bambang
Aribowo Yose Rizal, Head of Trading Division Head of Listed
Company Monitoring Division reports as follows:

1. The company will execute corporate action with
changing the debt to be an equity through Public Limited
Offering II As the (Right Issue II).

2. As the beginning step to execute Right Issue II, on
Thursday, 24 February 2000 was conducted Coordination
Meeting with all related supported institutions which were
appointed by Company, and attended by IBRA and Prakarsa
Jakarta.

3. The result of Coordination Meeting and the detail steps
and all matters related with Right Issue II will be
reported as periodically by Company.   (The Jakarta Stock
Exchange  02-March-2000)

PT TIRTAMAS COMEXINDO: Creditor meeting Mar.13 on rehab
-------------------------------------------------------
PT Tirtamas Comexindo's foreign and local creditors will
meet on March 13 to decide whether to approve a debt
restructuring plan or let the company be declared bankrupt,
the Jakarta Post quoted Tirtamas lawyer Jamaslin Purba, of
Hotman Paris and Partners law firm, as saying.

Purba said most of the creditors reject the proposal to
restructure the company's 400 mln usd debt.  In December,
the Indonesian Bank Restructuring Agency, representing
Bank Tamara, filed a bankruptcy suit against Tirtamas
Comexindo for its failure to repay 38 bln rupiah in matured
loans to the bank under the agency's control.

The court then granted Tirtamas's request for the
suspension of payments to give it time to renegotiate a
debt restructuring agreement with creditors.  Purba said
the company's total assets stood at 234 mln usd at end-Dec
1999, of which 121 mln usd was in the form of account
receivables.

He said of this amount, the largest part was owed by
Singapore-based Indocem ex Fibres Pte Ltd, whose debts to
Tirtamas Comexindo stood at 54.7 mln.  He said Indocemex
was declared bankrupt in a Singapore court in 1999.
Tirtamas Comexindo is part of the Tirtamas Group owned by
businessman Hashim Djojohadikusumo.  (AFX News Limited  03-
March-2000)


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

DAIEI INC.: To unveil revised business plan in April
----------------------------------------------------
Daiei Inc. (8263), a major Japanese supermarket operator,
hopes to unveil a revised version of its midterm business
plan in late April, President Tadasu Toba said Thursday.

He said Daiei will be able to reduce interest-bearing debt
ahead of schedule with the proceeds from sales of its stake
in Lawson, a convenience-store operator, and real estate
assets.  As a result, Daiei now aims to be able to cut Y1
trillion of its group-wide interest-bearing debt by
February 2001, instead of its initial target of February
2002.

"We hope to regain viability," with the revised business
plan aimed at recovery in our mainline retail business,
Daiei chairman Isao Nakauchi said.

Daiei and its unlisted group companies' interest-bearing
debt was estimated at Y2.2 trillion as of its Feb. 29 book
closing, compared with Y2.4 trillion in a prior outlook.

Following the public offering of Lawson shares, Toba said
the Daiei group aims to hold a stake of 30% or more in
Lawson, while non-Daiei parties are seen holding about 30-
40%.  Mitsubishi Corp. (8058) and Marubeni Corp. (8002)
have reached an agreement with Daiei, under which the
trading houses are guaranteed to hold stakes when the
convenience store goes public by the autumn of this year.

For the just-ended fiscal year, Toba said sales at Daiei's
existing store sales fell about 4%.  He said Daiei's
special losses on a parent basis for the just ended fiscal
year are estimated to have totaled Y80 billion, including a
loss from voluntary retirement program. Meanwhile, it
estimates special profits totaling Y80 billion, including
proceeds from sales shares in job information company
Recruit Co. (Nikkei  02-March-2000)

LONG-TERM CREDIT BANK: Seeks 240Bln Yen in public funds
-------------------------------------------------------
The new Long-Term Credit Bank of Japan on Friday filed an
application with the Financial Reconstruction Commission
for an injection of 240 billion yen in public funds to
bolster its capital base.

The nation's top watchdog on financial institutions will
shortly formally approve the application, sources said.
The injection will push up the bank's capital adequacy
ratio to 12.05% for the term through March 2001. The ratio
is expected to fall to 9.28% in the year through March 2003
because the bank has no plan to refinance existing high-
cost subordinated loans and other debts taken out several
years ago.

President Masamoto Yashiro said Friday that the bank "will
seek to re-enter the overseas market in two to three
years."

He also appeared to be confident about posting around 70
billion yen in net operating profit in the year through
March 2003. The bank plans to list on the stock exchange
again within seven years. The bank intends to substantially
review its fund-raising methods. The bank will not actively
sell five-year bank debentures, which used to be its main
source of funds, Yashiro said.

The bank plans to shrink the size of fund procurement
through the issuance of bonds from 7.3 trillion yen for the
current term to 3.5 trillion yen in three years' time. The
bank will seek to raise 3.5 trillion yen in deposits.
The bank also plans to establish joint ventures for
brokerage and asset management services with Mellon Bank of
the U.S. and other institutions. (Nikkei  04-March-2000)

MYCAL CORP.: S&P lowers corporate rating
----------------------------------------
Standard & Poor's Corp. has lowered its rating on Mycal
Corp. to single-Bpi from double-BBpi. The rating agency
said the move was based on public information about the
company and reflects its weakening financial profile.

S&P cited the company's continued aggressive capital
spending amid the harsh operating environmental facing
retailers in Japan.

The Mycal group faces severe earnings pressure in its core
general merchandising operations and throughout its
disparate group companies, the agency said. (The Asian Wall
Street Journal  02-March-2000)

NIHON KOGYO CO.: To end production,sales of loss-makers
-------------------------------------------------------
Nihon Kogyo Co. (5279) announced Wednesday it will cease
producing and marketing of unprofitable concrete secondary
products as part of its restructuring program. The move is
attributed to sluggish sales amid stagnation of public
works programs.

The company will idle from April its Toyohashi, Aichi
Prefecture plant. The facility has been producing concrete
wall blocks, which have not generated much profit.
Production of the relatively profitable types of concrete
wall blocks will be transferred to the company's main plant
in Shido, Kagawa Prefecture.

A second production group at its Takamatsu plant in Ehime
Prefecture, which has been manufacturing Hume pipes, will
be eliminated and production consigned to outside firms.
Suspension of the operations will be accompanied by
personnel cuts. The company will encourage 85 employees to
take early retirement by March 21. It will also halve the
number of directors from 11 from next fiscal year.

Implementation of the austerity program will force the
company to chalk up an extraordinary loss of 770 million
yen for the for fiscal 1999, incurring a group net loss of
850 million yen.  The company, however, hopes to post group
net profit of 760 million yen for fiscal 2001 after
restructuring.

That projection comes on the heels of the announcement that
the company likely will record a net loss of 1.24 billion
yen in the year through March 31, after suffering a loss of
147 million yen in fiscal 1998.

The company had initially projected a net profit of 10
million yen, but an extraordinary loss of 940 million yen
will pull down its bottom line into negative territory.

Valuation loss on its investment in one of its group
companies that is in a state of negative net worth and the
loan-loss reserve booked for loan credit to the same firm
will total 520 million yen, the company explained.
Valuation loss on its securities holdings will come to 170
million yen, it added.

The company now expects a pretax loss of 270 million yen,
compared with fiscal 1998's 68 million yen.  (Nikkei  02-
March, 03-March-2000)

NISSHIN ELECTRONICS SVC.: To write-off pension shortfall
--------------------------------------------------------
Nisshin Electronics Service Co. (4713) announced Wednesday
that it will completely write off its shortfall of 1.2
billion in pension and severance obligations, taking it as
an extraordinary loss for the fiscal year ending March
2001.

The pension and severance liabilities are estimated to
reach 3.26 billion yen as of March 31, 2000, using a
discount rate of 3%. Pension assets totaled 2.04 billion
yen, resulting in a shortfall that is equal to 24% of
shareholders' equity.  The company may record extraordinary
profits from asset sales to help cover the extraordinary
loss next fiscal year, but it is unclear whether Nisshin
Electronics will be able to report a profit. (Nikkei  03-
March-2000)

TOHO MUTUAL LIFE INS.: GE Capital takes over
--------------------------------------------
US financial giant GE Capital said on Wednesday it has
completed its contentious takeover of Japan's Toho Mutual
Life Insurance, after first moving into the crippled
assurer two years ago.

"As a matter of fact, we are closing today the transfer of
Toho's policies to GE Edison (Life Insurance)," GE Capital
Services chief executive Dennis Dammerman told an
investment symposium in Tokyo.

The policy transfer signals the end of a saga, tinged with
tragedy, which began in 1998 when GE Capital took control
of Toho's life assurance business in a virtual takeover.
The Japanese firm was left only managing its former
contracts, and is now expected to be wound up once GE
Edison Life Insurance takes full control.

"With the policy transfer, policyholders of Toho Mutual
Life have become customers of a life insurer which is well
versed in the market, capable of developing innovative
products and supported by a financial foundation backed by
an AA [financial strength] rating" from a US ratings agency
Standard and Poor's, GE Edison said in a statement.

Last June, Japan's Financial Supervisory Agency ordered
Toho to suspend its operations because of excessive bad
loans amassed in the aftermath of the late 1980s "bubble
economy" investment boom.  But the ramifications of Toho's
failed expansion drive in those heady days look set to live
on even after it is wound up, with more than 500 former
employees reportedly suing GE Edison Life.

They have filed a lawsuit over the new owner's decision to
stop paying any further retirement benefits.  Remaining
policyholders, meanwhile, will have to accept cuts of up to
80 percent in benefit payouts when their Toho policies
mature, reports say.  GE Edison Life, which on February 22
denied receiving any notification of a lawsuit from former
employees, declined to comment. Enquiries to Toho were
referred to the US firm.  (Business Day  03-March-2000)


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

DAEWOO GROUP: Creditors warned against fresh-funds delay
--------------------------------------------------------
Creditor financial institutions participating in workout
programs for 12 units of the failed Daewoo Group will face
fines if found to be remiss in extending fresh loans to
Daewoo subsidiaries, warned a semi-government body in
charge of the group's restructuring yesterday.

In an official letter sent to about 100 creditors, the
Daewoo Restructuring Cooperative Council said it will never
fail to hold creditors responsible if their delay in the
provision of new funds results in the discontinuation of
any workout program.

"The council thinks tough penalties should be slapped on
creditor institutions procrastinating on extending fresh
loans, since some creditors were found to provide little
new funds to Daewoo units," said a council official.

Under the workout agreements, violators could face a fine
equivalent to the lower of 50 percent of their promised
fresh loans or 30 percent of their total loans to Daewoo
units.

The council said domestic creditors of the 12 Daewoo
affiliates had provided little in fresh funds to them since
signing the rehabilitation programs last year. However, the
amount of fresh loans began to rise in the wake of the
council inauguration early last month.

Daewoo Motor Co. and Daewoo Heavy Industries Inc. have
received about 60 percent of the fresh loan commitments but
the creditors have provided only 30 percent to the
remaining Daewoo subsidiaries, the council said. Even five
to six creditor banks have extended no fresh loans to the
Daewoo affiliates, it added.

In late November of 1999, domestic creditors of the Daewoo
units, including the group's flagship Daewoo Corp., signed
the workout programs in a desperate bid to turn the firms
around.  Last month, the government and domestic creditors
tentatively agreed with the group's foreign creditors to
buy their loans to the ailing Daewoo at about 40 percent
face value. Daewoo, the nation's second largest
conglomerate, collapsed under the weight of debts hovering
above 60 trillion won in late July of last year. Its
foreign debt alone is estimated at more than $5 billion.

The council's tough remark came three weeks after the
Financial Supervisory Commission (FSC) issued a stern
warning to the domestic creditors against their
procrastination in the workout programs.  On Feb. 15, FSC
Chairman Lee Yong-keun said the government will not
hesitate to impose penalties on Daewoo's creditor financial
institutions found to be reneging on workout promises.

"The creditors will face tough penalties if they do not
extend fresh funds and grant debt-for-equity swaps to
Daewoo units under the rehabilitation plans," said the top
financial regulator.

In order to put Daewoo units back on track at the earliest
possible date, the government will conduct thorough checks
on the progress of the workout programs, he said.  He also
stressed the importance of adherence by the financial
institutions to the workout agreements to boost values of
the Daewoo units. (The Korea Herald  06-March-2000)

DAEWOO MOTOR: Car sales suffering on sell-off
---------------------------------------------
Amidst the high-profile efforts of creditors to sell off
Daewoo Motor, domestic sales of its passenger cars have
been decreasing steadily over the four-month period since
last October.

According to Daewoo Motor Thursday, its domestic sales
dropped 9.5% in November to 34,204 units, down from 37,807
units the month before, and the slowdown continued in
December, when sales dropped 11.5% to 30,284 units. January
also saw a 13.3% decline to 26,255, with a 7.6% drop in
February to 24,268 units sold.

Daewoo officials blamed the setback in sales on untrue
rumors being spread by competitors that the quality of
Daewoo's after-sales service has been adversely affected by
the sell-off. (Digital Chosun  02-March-2000)

DAEWOO MOTOR: Ford to start due diligence
-----------------------------------------
Ford begins its due-diligence inspection on Daewoo Motor on
Monday.

The Daewoo restructuring committee said yesterday it held
talks on the inspection schedule with five participants in
the Daewoo Motor auction. Ford was selected as the first to
examine the Daewoo company.  The examination will be
conducted over 45 days in 50 locations including Daewoo
Motor's domestic plants, overseas manufacturing bases and
overseas branches. Corporate information on financial
situation, plans and materials will be supplied separately.

GeneralMotors, DaimlerChrysler, Fiat and Hyundai Motor will
start inspections as soon as they complete preparations and
finalize schedules.

"Ford completed preparations for inspection first and told
us that it will start Monday, and we accepted," said a
committee official.  "The remaining companies will start
examinations as soon as they complete preparations."

GM, which had examined Daewoo Motor for over one year from
1998, will start inspections at a later date while Hyundai
is making plans for the inspection.  Twenty GM officials,
including Executive Vice President Lou Hughes, visited the
GM Korea office last week for talks on the inspections.

Ford is known to have set up an office for the auction in
Seoul and has reportedly offered up to $7 billion to
acquire the troubled carmaker. (The Korea Herald  04-March-
2000)

KOREA ELEC.POWER CORP.: Borrowings could soar this year
-------------------------------------------------------
State-run Korea Electric Power Corporation (KEPCO) could
face cash-flow problems this year as loan repayments eat
into its financial status.

According to a report released yesterday by KEPCO on
measures to improve its financial status, borrowings, which
was a mere 8.80 trillion won in 1995, ballooned to 24.7
trillion won at the end of 1999 and is expected to increase
to 28.1 trillion won by the end of this year.

The report also showed that at the end of last year, KEPCO
had debt-to-equity ratio amounting to 159 percent excluding
asset reevaluation and is likely to see that figure rise to
177 percent by the end of this year. However, the asset
reevaluation included, the debt-to-equity ratio was 111.5
percent last year and is expected to be 123.3 pe cent this
year.

KEPCO explained that the increasing cost in facility
investments, which total around 6 to 9 trillion won per
year, undergirded the sky-high loan amount.  To improve its
financial status, KEPCO said it will make its management
more efficient, sale some of its assets and scale back on
investments.

For starters, it will try to sell its power plants in
Inchon and Puchon, Kyonggi Province, by the end of May and
out source its supporting facilities and lands.  It will
also sell its 66 percent stake in telecommunication firm
Powercom, 3.2 percent stake in Nextwave and 26 percent
stake in Korea Heavy Industries and Construction (Hanjung)
by next year and re-evaluate its joint ventures with
foreign companies in the US and Australia.

KEPCO believes if it manages to accomplish these goals it
can reduce its debt-to-equity ratio by 9 to 24 percent.
(The Korea Times  05-March-2000)

SAMSUNG MOTOR: Sales price gap reaches W500Bil.
-----------------------------------------------
French carmaker Renault and creditors of Samsung Motors
remain miles apart over the automaker's pricing terms, with
the gap thought to reach about 500 billion won ($446
million), said industry sources yesterday.

Renault, concluding weeks of due diligence on Samsung
Motors' plant and assets, is scheduled to present its
pricing terms to creditors next week. According to the
sources, the French automaker may offer to buy Samsung
Motors for between 400 billion to 600 billion won, whereas
creditors are known to be asking for at least 1 trillion
won.

"Renault is likely to stick to its stance of knocking down
the takeover price, out of the conviction that it is the
only automaker in the position to buy Samsung," said an
industry executive.

Creditors, setting the minimum value of Samsung Motors at 1
trillion won, are determined not to sell the carmaker at a
bargain. Indeed, some officials belonging to the creditor
group have indicated that Samsung could be put up for
international auction in the event of a failure to
compromise on pricing terms. (The Korea Herald  04-March-
2000)

SAMSUNG MOTOR: Renault in final negotiations
--------------------------------------------
A high-ranking official of Samsung Motor said in a recent
interview with French daily Le Monde that French automaker
Renault will be making a final decision on its bid to take
over Samsung Motor by the end of March.

Samsung Motor Vice President Lee Jong-ryul was quoted as
saying that Renault has recently completed its negotiations
with Samsung and has been going through final price talks
with Samsung Motor creditors.

The official also said that the final decision on Samsung's
proposal to retain about 20% equity in the sell-off deal
will be up to Samsung creditors.  Out of the maximum 6,000
Samsung Motor staff employed at one point, only about 2,500
are currently employed at the firm, said Lee, suggesting
that staff streamlining will not be an issue. (Digital
Chosun  03-March-2000)


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

BESCORP BHD.: PDN appoints special administrator
WOO HING BROTHERS BHD.: PDN appoints special administrator
----------------------------------------------------------
Malaysia's bad debt agency, Pengurusan Danaharta Nasional
Bhd., appointed special administrators for Bescorp Bhd. and
Woo Hing Brothers (Malaya) Bhd.

Danaharta said Thursday that the special administrators
will assume control of the assets and affairs of Bescorp, a
retailer of watches, and Woo Hing, a building-materials
manufacturer.

"The powers of the management and the board of these
companies are effectively suspended, and only the special
administrators can deal with the assets of the companies,"
the agency said.

Danaharta said a 12-month moratorium will take effect from
the dated of appointment to preserve the assets of the
companies until the special administrators are able to
complete their tasks. "During that period, no creditors may
take action against the companies," it said.

The special administrators will prepare proposals to work
out the companies' debt problems, and if Danaharta approves
the proposals, it will call for a meeting of secured
creditors to consider and vote on the proposals. (The Asian
Wall Street Journal  03-March-2000)

HICOM GROUP: Relief over DRB-Hicom group merger
-----------------------------------------------
The acquisition of Perusahaan Otomobil Nasional Bhd
(Proton) and Usahasama Proton-DRB Sdn Bhd (USPD) by
Petroliam Nasional Bhd (Petronas) has brought relief to the
much chastised merger of the DRB-Hicom group.

It not only shored up the share prices of the four
companies in the DRB-Hicom stable on Friday, which had been
hammered since they were requoted on Wednesday, but also
showed the benefits of instituting such a merger plan.
Under the new group structure, the RM1.28bil in proceeds
from the sale of Proton and USPD could be used to reduce by
the same quantum the debt in the DRB-Hicom group.

The fluid use of such proceeds is critical for the new
entity which has total debts of RM5bil, of which RM3bil is
long-term and RM2bil, short-term.  Under the old group
structure, the sale of Proton would have eased Hicom's debt
burden, which is estimated to be in excess of RM2bil.

Diversified Resources Bhd (DRB) would have gained from the
disposal of USPD to set off against its debts while the
proceeds from the sale of Credit Corp Malaysia would have
gone into the wallet of Gadek Capital Bhd.  But they would
not have been able to utilise the money more efficiently
and effectively to settle against the debts of other
companies within the group.

For a company which does not have enough money to expand,
it would have had to borrow instead of utilising the extra
cash held by some other company within the group.  DRB, in
a statement issued on Monday, said the dismantling of the
associate holding structure will allow a more transparent
organisation structure which will enable free flows of
value and cash.

"The merger will enable us to create value through the
restructuring of DRB-Hicom group's assets and liabilities
in a balanced manner," it said.  "Based on the current
structure, there are considerable negative economic
values."

Debt management is, however, just a portion of the benefit.
Apart from managing its financial resources and burden
better, the elimination of competing business activities
within the present group would also offer greater
synergies, a centralised treasury operation to maximise
value from cash and debt management and also save cost.

Many see the merger as having very little operational
sense--the group would be without its prized national car
manufacturing and distribution business following the sale
of Proton, EON and USPD.  Analysts also said DRB would have
to deal with an earnings dilution from an enlarged share
capital base. But, they observed, the merger does open up a
new horizon for the group.

In the automotive segment, DRB would look towards its
distributorship franchises, four-wheel drive and commercial
vehicles business, the commanding market share of Motosikal
dan Enjin Nasional Sdn Bhd (Modenas) and, DRB-Hicom Defence
Technologies which is earmarked to secure billion-plus
ringgit contracts from the Ministry of Defence.  But
analysts see the group's future in the property and
construction businesses, where it has huge tracts of prime
land for development.

The group stands to benefit greatly from the civil works it
would undertake from the multi-billion ringgit
electrification double tracking projects.  It is also
hopeful of securing more electrication and double tracking
of the railway lines after it completes the Rawang-Ipoh
stretch.

From the services segment, earnings would mainly be derived
from SEA Insurance which aims to be an anchor insurance
company and Alam Flora, which is well on the way to being
profitble.  The new group also harbours an ambition to
venture into the information technology business and is
bidding for a government contract in that area.  But the
merger also addresses the debt concerns and operational
issues that would exist following the disposal of certain
of the group's key assets.

For Hicom, HLG Securities in a report said it would address
concerns about the company's future earnings stream after
the sale of Proton and EON which account for about 60% of
Hicom's operating revenue during its previous financial
year.  For Gadek shareholders, it would mean the company
would be able to meet its bond obligations next year and
fully benefit from the proceeds raised from the sale of
CCM.

It would also mean that Gadek would be part of a larger
entity instead of having just SEA Insurance and
construction entity Perspec Prime.  For DRB, the report
said the company would benefit from a larger earnings base
although it would have to shoulder some RM5bil of debt.
DRB said it should not be too daunting, considering that
Hicom's and Gadek's debt totalling some RM1.64bil would be
settled by 2001 with proceeds from the sale of Proton and
EON. The excess would be to repay other obligations.

"In addition, there will also be proceeds from the sale of
USPD and possibly the recoupment of part of DRB's
investment in Intrakota," it said. (The Star  06-March-
2000)

HSBC HOLDINGS: Posts wider annual loss
--------------------------------------
HSBC Holding's Malaysian unit has reported a group net loss
of M$476.7M for the year to Dec 31, compared with a
$336.19M loss the previous year.

HSBC Bank Malaysia's loss per share was $2.27, against
$1.68 in 1998. The loss came on the back of loan loss and
provisions of $982.56M, against $1.08B in 1998, and staff
cost and overheads totalling $492.32M, compared with
$447.66M previously.  Net interest income was $660.3M last
year, against $748.96M in 1998. HSBC Bank Malaysia said net
non-performing loans at the end of the year were 11.9% of
total loans. This compared with 9.6% at the end of 1998.

Loans totalled $11.94B last year against 14.99B previously,
while assets stood at $22.52B, against $23.26B a year
earlier. The bank said as of the end of last year, the
amount of foreign exchange and interest rate related
contracts not hedged, and hence exposed to market risk, was
$299M, compared with $246M at end 1998.  (Singapore
Business Times  06-March-2000)


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

PETRON CORP.: Analysts say "avoid" buying stock for now
-------------------------------------------------------
Giants, like normal-sized creatures, are not spared from
injuries. And it seems that the country's oil Goliath is
bleeding as world oil prices continue to rise.

Last week, Petron Corp. estimated that the company lost 500
million Philippine pesos (US$12.2 million at
PhP40.896:US$1) from January to February because it failed
to fully recover costs incurred from the higher cost of
crude and the weakness of the local currency. The company
has said under-recovery stands at PhP0.95 per liter.

Due to this under-recovery, analyst Eileen Leslie D. Que of
Guoco Securities suggests that investors stay away from the
issue.  "We are still avoiding the stock because they still
couldn't increase their pump prices and, at the same time,
their costs are increasing because of the foreign exchange
rate and prices of crude oil worldwide are still
increasing," said Ms. Que.

Although Petron has repeatedly increased pump prices since
last year up to February, the company said it has not
allowed consumers to fully take on the additional cost.
"With the PhP500-million loss they reported, I think that
there is still a downside to the stock," said Ms. Que.

Last Thursday, oil prices climbed anew. For instance, the
Dubai crude price -- which is the benchmark used by local
companies -- rose to $25.54 per barrel from only $22.43 at
the start of the year.  The weighted average of the local
currency has also remained at the PhP40.90 to a dollar
level last Friday, which Petron said would translate into
higher losses in the coming months.

Petron earlier reported that its net income fell 35% last
year to PhP2.4 billion ($58.7 million) from PhP3.7 billion
($90.5 million) in 1998.  Despite the company's problems,
the issue closed at PhP2.44 per share, breaking its
downhill movement last week. Some 289,000 shares, amounting
to PhP697,020 ($17,000), changed hands last Friday. The
issue closed at PhP2.50 per share the earlier week.

"The rebound probably is just technical in nature because
it has been going down for the longest time already," Ms.
Que said. Also, Ms. Que felt that Petron only followed the
direction of the local bourse which also closed higher last
Friday, with the 33-share Philippine Stock Exchange
composite index (Phisix) closing at 1,696.75, up 29.3
points from the previous day. On a week-on-week comparison,
the Phisix lost 98.06 points.

Petron's share price since the early part of last year has
been on a downtrend as investors sold and avoided the issue
due to increasing crude prices. The issue's 52-week high
stands at PhP5.30 per share posted in April last year.
The latest Barra Global Estimates places Petron's net
income this year at PhP2.3 billion ($56.2 million) while
earnings per share is expected to reach PhP0.30. (Business
World  06-March-2000)

PHILIPPINE NAT.BANK: Gov't to open PNB block sale to L.Tan
----------------------------------------------------------
Anticipating lukewarm response, the National Government
said it will offer its planned block sale of Philippine
National Bank (PNB) shares to Chinese-Filipino businessman
Lucio C. Tan, who now owns 45% of the semiprivate bank.

At Friday's press conference, Finance Secretary Jose T.
Pardo said the government will not prevent Mr. Tan from
bidding for the block if it pushes through with its
proposal to sell its 30% stake in the bank, together with
Hong Kong-based Templeton Asset Management Corp.'s 12.9%
stake.

The Department of Finance (DoF) earlier proposed to sell
the combined 87% stakes of the National Government, Mr. Tan
and Templeton as a block to fetch a better price for PNB.
While the Templeton group has agreed to the proposed block
sale, the government is still awaiting the Tan group's
decision.  If no investors will bid for the block offering,
Socioeconomic Planning Secretary Felipe M. Medalla said
selling to Mr. Tan will be the "best" option.

"If Lucio Tan and the Philippine government pool all their
shares and offer it at a certain price and nobody buys it
at that price, it's all but fair to allow Mr. Tan to buy
our shares at that price," he told reporters at the same
press conference.

Mr. Medalla is a member of the DoF's Committee on
Privatization (CoP), the government's privatization arm,
which handles the sale of government's shares in PNB.

"Suppose the consortium offers the price at X and nobody
buys at X because X is too high. If anyone (from the
consortium) buys it at X, then it makes the pricing
transparent," Mr. Medalla added.

The government wants the PNB block to fetch an offer price
of between 150 Philippine pesos (PhP) and PhP160, more than
double its closing price of PhP68.50 last Friday at the
Philippine Stock Exchange.  The combined 87% "super-
majority" stake is expected to inject value into PNB, whose
book value has dwindled to an estimated PhP90 per share as
of end-1998.

Meanwhile, Mr. Pardo said the government is waiting for an
updated audit of PNB by the bank's own auditor,
Punongbayan, Araullo & Associates, before setting a
valuation.  He said the audit of international firm
PricewaterhouseCoopers used international accounting
principles different from what is used in the country.

"The PNB board and management was made to update and use
that as a final basis for determining what loan loss
provision they should allow," he said. He said the
discrepancy in standards is affecting the pricing of the
bank.

But he said the new audit is unlikely to affect the
deadline for the full privatization of PNB in June.
"We would still move for a June 30 deadline, the audit is
ongoing now," Mr. Pardo said.

The government is under pressure to sell its PNB stake to
fulfil its commitments with multilateral agencies such as
the International Monetary Fund and the World Bank. At the
same time, it is also relying on proceeds of the sale to
help fill a projected PhP62.5-billion budget gap for the
year. (Business World  06-March 6, 2000)

UNIWIDE GROUP: French parent plans provincial expansion
-------------------------------------------------------
The provincial expansion plan of cash-strapped Uniwide
Group of Companies -- which was shelved when the retail
company went into crisis -- will now be carried out.

White knight French retail firm Casino Guichard-Perrachon
SA (Casino Group), has committed to put up five new Uniwide
stores once it finalizes its acquisition of 89.2% interest
in the warehouse operator by June this year.

A well-placed source revealed that the French retail giant
is planning to expand Uniwide's operation in the provinces
with the opening of five more stores in addition to the 10
existing hypermarkets, or warehouse-type discount stores,
which Casino has agreed to purchase from Uniwide.

Casino plans to put up the additional stores in key cities
such as Iloilo and Cebu.  The source, however, said Casino
will temporarily close down the stores for refurbishment
and re-imaging once the acquisition has been completed.

"Basically we will remodel the company for the next 12
months. We have to change many things. It will be more of a
re-engineering program," Philippe Bastien, head of Casino's
investor relations department, told BusinessWorld earlier.

A change in the company's name is also being considered but
the plan is still on the drawing board.  The Uniwide Group
does not expect to post earnings this year with the
temporary closure. However, it forecasts 14.7 billion
Philippine pesos (US$359.4 million at PhP40.896:US$1) in
sales in 2001, or at least PhP1 billion ($24.4 million) per
store which was the pre-crisis level for all Uniwide
stores.

Parent firm Uniwide Holdings, Inc. (UHI) and its
subsidiaries were planning to embark on an expansion binge
prior to the financial crisis.  Based on UHI's 1998
consolidated financial statements, shelved projects include
the construction of Uniwide Sales Coastal Mall on a leased
land in Para¤aque -- which was already 90.54% complete at
the time -- as well as the development of the Uniwide
Department Store in Cubao, Quezon City.

Uniwide Sales Realty & Resources Corp. (USRRC), one of
UHI's realty subsidiaries, has also deferred the completion
of three warehouse club buildings in Talisay City, Bacolod;
Mandaue City, Cebu; and Naic, Cavite.  The construction of
Harbor City Mall in Bacolod was also postponed, after USRRC
plunked in PhP150 million ($3.7 million) in the project.

Building of the Naic Resources and Development Corp.'s
(NRDC) theme park project, the Dream World Complex in Naic,
Cavite likewise came to a standstill.  Other shelved
projects are the South Point Mall in Cabuyao, Laguna;
Tarlac Central Mall in Tarlac; Malolos Mall in Bulacan;
General Santos Mall in Cotabato; and Baguio Mall in Baguio.

"But all these will be continued with the entry of Casino.
We expect good recovery for 2001. After its long hiatus,
Uniwide was up 35% on optimism Casino's entry will give the
company a new image," an analyst from a local brokerage
house said.

The Uniwide Group is currently seeking the approval of its
creditor banks on its revised rehabilitation plan to pay
off its PhP11.1 billion ($271.4 million) in loans, of which
PhP6.95 billion ($170 million) are owed to 13 creditor
banks.  Under the proposal, cash payments to creditor banks
will be 20% less than the amount due while cash payments to
suppliers and traders will be discounted 50%. Aside from
cash payments, the group also plans to service its debts
through a dacion en pago or debt-for-asset swap
arrangement.

As this developed, Unwide creditor Bank of the Philippine
Islands (BPI) recently joined two other major banks in
asking the corporate court to dismiss the amended
rehabilitation plan.

In a comment filed with the Securities and Exchange
Commission (SEC) last Friday, BPI attacked the amended
rehabilitation plan for "containing terms that are
unreasonable, unacceptable and way below the standards of
sound banking practices."

Among others, BPI objected to the proposed 20% discount on
cash payment to be made on the bank's total exposure in
Uniwide Sales, Inc. (USI) and Uniwide Sales Realty &
Resources Corp. (USRRC).  Under the amended rehab plan, the
management of the Uniwide group asked creditors and
suppliers for a 20% to 50% discount on the payment of
loans.

"We're negotiating for a haircut in the payment of our
obligations. We're asking for a discount from 20% to 50%.
We will not restructure our debts anymore but instead pay
them in cash but at a discount," a company official said
earlier.

For its part, BPI said it will lose over PhP89 million
($2.2 million) if the said discount is given the go signal
by the Commission. BPI has an exposure of PhP943.32 million
($23 million) in the retail company.  Moreover, BPI said it
refuses to give up its mortgage rights over two Uniwide
properties.

"This is most unfair and unconscionable. To be sure, the
move is even illegal or its renders nugatory the
preferences of credits that the SEC ... must adhere to,"
BPI said.

With respect to the proposal of satisfying BPI's exposure
in Uniwide Holdings, Inc. (UHI) through a debt-for-asset
swap in Metromall Special Purpose Company shares for PhP416
million ($10.2 million), BPI said the plan "gratuitously
assumes PNB (Philippine National Bank) and Allied Bank
would allow BPI to participate in the use of collateral
where these banks hold preferred positions."

"That PNB and Allied Bank would agree to a novation of the
obligations to them of Uniwide is highly unlikely and, at
best, speculative," BPI said.

Earlier, East West Banking Corp. (EWBC) questioned the
creation of a special purpose company (SPC) whose shares
will be distributed to participating creditors.  Under
Uniwide's amended rehab plan, the Gow-owned group proposed
to form an SPC, with Metromall as its sole asset. Shares of
the said company will then be used as part of Uniwide's
repayment plan.

"Retail business is not among those allied undertakings
enumerated under the (General Banking Act), nor is the
realty business in the SPC. In other words, the proposal
being offered to EWBC to hold shares in non-allied
undertakings is outright illegal," EWBC said.

EWBC also expressed objections to the proposed settlement
of its PhP134.28 million ($3.3 million0 exposure to the
beleaguered retail firm by replacing the present collateral
-- Coastal Mall Building and Improvements -- with
participation in Metromall. (Business World  06-March-2000)

WESTMONT INVESTMENT CORP.: BSP probing investment firm
------------------------------------------------------
An investment company linked to former Finance Secretary
Edgardo B. Espiritu is being investigated by the Bangko
Sentral ng Pilipinas for alleged misrepresentation by
engaging in banking functions that are not covered by its
license.

Westmont Investment Corp. or Wincorp, a wholly owned
subsidiary of Unioil Resources and Holdings Co. Inc., is
reportedly suffering from liquidity problems after
Singapore-owned UOB Philippines (formerly Westmont Bank)
terminated a short-term check clearing facility.

The termination of the facility led to the uncovering of
Wincorp's liquidity problems and possible violations of
banking and investment laws.  BSP Governor Rafael
Buenaventura said the Singaporean bank that bought out
Westmont asked them the other day to look into the
activities of Wincorp and to certify that UOB was now a
separate entity from the investment firm.

Westmont Bank and Wincorp used to be sister companies until
United Overseas Bank Ltd. bought into the former in
November 1999 for P3.3 billion. The Singapore banking giant
bought the bank but not the investment firm.

"The BSP will look into the reported fund-gathering
activities of Wincorp from the public and depending on the
results of the investigation, we have the authority to
impose appropriate sanctions and penalties," Buenaventura
said.

The central bank chief said they would have to establish
whether Wincorp had engaged in banking activities such as
accepting deposits.  "If they misrepresented, then they
could be liable," Buenaventura pointed out.

He said the BSP would also look into reports Wincorp had
violated Dosri caps set for investment houses. The Dosri
provision states that total loans to the directors,
officers, shareholders and related interests should not
exceed 20 percent of the bank's unimpaired capital.

In the case of Wincorp, its unimpaired capital was only
P325 million but its loan portfolio has reportedly reached
P6.5 billion. A part of this exposure, sources said, were
tied up to the company's bond subscriptions issued by
National Power Corp. in previous years.

The BSP chief said Wincorp was actually more liable to the
Securities and Exchange Commission, which could revoke its
investment house license if found to be performing
unauthorized quasi-banking functions.  Among the
shareholders of Unioil Resources are Sta. Lucia Realty
Development Corp., ACL Development Corp., Pearlbank
Securities Inc., Ebecom Inc. of former Finance Secretary
Edgardo Espiritu, PCD Nominee Corp., Alfonso Reyno Jr.,
Gridiron Ltd. and ROF Management and Development Corp.
Espiritu and his son John are both in the US.

Espiritu resigned as finance secretary in January after a
little over 18 months in charge of the country's coffers.
He is a former senior executive of Westmont Bank and
Wincorp.  When he departed, Espiritu blamed presidential
friends and advisers for disarray in government and falling
morale in the Cabinet.

"They are not accountable to the people," Espiritu said on
television. "They are not even elected officials. Maybe
it's about time we define what role people with
accountability should play and people without
accountability should do."  (Philippine Daily Inquirer  04-
March-2000)


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

SUBMICRON TECH.: Completes preliminary debt-rehab plan
------------------------------------------------------
Submicron Technology's financial advisor has completed the
19 billion baht debt reform plan, and the company is to
review the draft on March 10, according a company source.

The debt restructuring plan reportedly does not include
debt write-off but contains rescheduling of payments; an
extension from a three to five years payment period to
seven to 10 years.

In addition, the plan includes conversion of roughly 25
percent of debt to convertible debentures which creditors
have an option to transform to equity.

The same source also commented that the plan is likely to
be turned down by creditors, citing that the scheme itself
is too lenient to Submicron and lacks goodwill gestures to
creditors. Most creditors prefer that the company includes
strategic partners in the package which will boost the
company's viability.

Previously, Siam City Bank (SCIB) filed a bankruptcy suit
against Submicron, and courts ordered the company's assets
frozen. The debt restructuring plan, therefore, is the last
alternative and all creditors must endorse the plan in
order for the company to go under business reorganization.

"Seeking strategic partners, either within the government,
or from foreign investors, is considered impossible for
Submicron because the company's asset were ordered frozen,"
the source said.

The source also said Submicron favors capital raising of
US$500 million and if the wafer project is revived the
company wants additional funds of $700-$800 million to
utilize as working capital and equipment purchasing.

There are at least five foreign investors interested in co-
investing in the wafer facility,

Bangkok Bank (BBL) is Submicron's major creditor,
accounting for over five billion baht of the delinquent
debt, or 26.32 percent. (Business Day  06-March-2000)

THAI PETRO.INDUS.: Split decision in court battle
-------------------------------------------------
Round three of the Thai Petrochemical Industry court battle
ended in a split decision yesterday, after the company
asked the court to approve credit lines for 7.17 billion
baht.

The Central Bankruptcy Court approved one request for 100
million baht, used as a guarantee for utilities expenses.
The remaining calls for funds were judged to be part of
normal operations, and thus not requiring the approval of
the court.

Analysts said the ruling could prove to be a setback for
TPI, since court approval was not given for the majority of
the credit requests.  TPI executives asked the court for
permission to open 7.17 billion baht in credit facilities
with the Bank of Ayudhya, divided into a 30-million-baht
overdraft line, 40 million in packing credits and seven
billion in letters of credit and trust receipts.

"But since there wasn't clear approval by the court, it
remains questionable whether Bank of Ayudhya wants to go
ahead with the facilities and risk not only the wrath of
other creditors, but also possibly breaking the automatic
stay," one analyst said.

Under the bankruptcy law, an automatic stay is given as
soon as a firm enters the rehabilitation process. Companies
are prohibited from taking out major new loans or
activities significantly affecting a firm's financial
position. TPI's argument yesterday centred on the claim
that the credit facilities were part of the company's
normal. business practices.

Taifah Lohapantsri, a TPI executive, testified that the
firm had already agreed with the Bank of Ayudhya on the
credit line.  The bank, however, was concerned about the
reaction of other creditors, and had asked the firm to seek
court approval for the loans.

"The bank wants protection under the court, even though
this transaction is normal business, normal working
capital, which we've done since 1997," Ms Taifah said.
"This isn't new credit, and Bank of Ayudhya doesn't receive
any new collateral at all."

Ms Taifah said the transactions would have no negative
impact on either TPI or the bank, with the facilities used
only to buy raw materials, including oil, as well as
supplies to maintain equipment. In fact, the funds would be
beneficial not only to the company and shareholders, but
creditors as well, she said.

Besides the Bank of Ayudhya, other banks, including DBS
Thai Danu, Chase Manhattan, Standard Chartered and Thai
Military Bank had also extended working capital facilities
for the firm.  Attorneys representing creditors protested
against the ruling, saying an appeal might be filed to
prevent the transactions.

Creditors noted that TPI had stated last September that it
had cash on hand of two billion baht, with no need for
additional credit lines from the Bank of Ayudhya. The court
ruling said overdrafts, packing credit and trade finance
were considered normal transactions, not requiring approval
from the court, but attorneys for creditors said the
transactions should fall under the automatic stay clause,
and be prohibited until the rehabilitation process was
completed.

Testimony by TPI on a separate petition challenging whether
or not the firm was insolvent was wrapped up on Thursday.
The Central Bankruptcy Court plans to rule on the case on
March 15.  TPI has argued that creditor banks were
conspiring to take over the company and its assets, and
that the assets actually exceeded liabilities, which would
mean the firm fell outside the requirements for
rehabilitation.

The industrial giant has been negotiating with creditors to
restructure its $3.5-billion debt since 1997, and is the
country's largest non-performing debtor. The case is being
closely monitored by investors as a test case for the
country's progress on corporate reform.  Shares of TPI on
the Stock Exchange of Thailand yesterday closed at 10.25
baht, down 0.25, on trade worth 58.65 million baht.
(Bangkok Post  04-March-2000)

THAI TEL.& TEL.: Plans to sell 5Bn baht worth of shares
-------------------------------------------------------
Thai Telephone & Telecommunicatlon, the main fixed-line
phone operator outside Bangkok, said it plans to sell 5
billion baht ($131 million) worth of shares to repay debt
and fund expansion.

The company, which yesterday received approval from a
majority of creditors to restructure its 44 billion baht
debt, said it plans to sell shares to strategic investors
within two and a half years.  Of the proceeds, 3 billion
baht will be used to repay debt, while the remainder will
fund expansion, it told the Thai stock exchange.

Thai Telephone is expected to return to profit in about two
to three years as easier debt terms and the repayment of
some debt will reduce interest expenses.  The company lost
2.53 billion baht last year, partly as a weaker baht
magnified about 5420 million in foreign debts in local
currency terms.

Under the plan approved yesterday, creditors will convert
15 percent of what they are owed into equity, while
payments on the remaining loans will be postponed by up to
18 gears.  Thai Farmer Bank, Credit Lyonnais SA and and
Sumitomo Bank and Jasmine International are among the
company's biggest creditors.

In addition, the debt plan calls for the balance equivalent
debt of 30.8 billion baht to restructured into three
tranches each worth 19.18 million baht, 5.55 billion, and
6.12 billion baht, with variety of grace periods and
interest rates.

The company, like hundreds of the country's largest
delinquent debtors, halted principal payments after the
baht value of dollar-denominated debt ballooned with the
baht devaluation in 1997, and the subsequent recession cut
revenue. (Business Day  03-March-2000)

THAI TEL.& TEL.: Rehab's done, merger/new partner next?
-------------------------------------------------------
With a debt-restructuring deal finally in hand, Thai
Telephone and Telecommunication Plc (TT&T) is ready to take
on new partners to create a more stable future for its
fixed-line provincial telephone business.

Two local telecom giants-the Charoen Pokphand Group and
Shin Corporations-have already expressed interest in a link
with TT&T.

"Both CP and Shin sent letters expressing their interest in
holding stakes in TT&T as soon as our debt-restructuring
plan was approved by creditors," said Adisai Bodharamik,
chairman of Jasmine International, a major shareholder of
TT&T with 23.07%.

Jasmine International's stake will rise to 30% in a debt-
equity swap that was part of the deal approved last week by
a 98% vote of the creditors holding TT&T's 38 billion baht
in debts.  Shin chief executive Boonklee Plangsiri
acknowledged that his company was interested in TT&T and
its 1.5 million fixed lines, but needed more time to
finalise its strategy.

"We are checking the conditions attached to the debt
restructuring and would like to wait awhile until all these
are clear."

CP chairman Dhanin Chearavanont was not available for
comment. But he had stated two weeks ago that CP, parent of
Bangkok fixed-line operator TelecomAsia, was interested in
an alliance with TT&T.  Dr Adisai said that apart from CP
and Shin, a foreign telecommunications giant was also
looking at TT&T. He declined to name the company.

Songrit Kusomrosananan, chief executive of Jasmine
International, said any decision on a partnership would
need approval by a committee appointed by TT&T and its
creditors.  Nevertheless, he said, the debt resolution had
breathed new life into TT&T. "Moreover, we are now in the
advantageous position of being able to set conditions [for
prospective partners] rather than accepting conditions from
them."

The main requirement in any deal, Mr Songrit said, would be
for the partner to commit five billion to six billion baht
to help TT&T repay its creditors. "Whoever gives us the
best share price and is willing to hold a minority share
will be the most likely partner we will select."

However, other conditions such as the connection to TT&T's
network, technology transfer and assistance would also be
considered. TT&T now has a paid-up registered capital of
11.25 billion baht or 1,125 million shares at 10-baht par.
Under the terms of the debt restructuring, the original
shareholders of TT&T accepted the conversion of the seven
billion baht they were owed into equity equivalent to 700
million shares.

"If the share price is set at 10 baht par, then TT&T will
obtain five billion to six billion baht in fresh funds from
the sale of 500-600 million shares or a holding of 21.5% to
24.74%," Mr Songrit said.

The new shares should fetch a premium, enabling the company
to earn more money, he said. "Therefore the new allies will
obtain less than a 20% holding, while the holdings of the
original shareholders would be slightly diluted. I strongly
believe that Jasmine and its allies that helped found TT&T
will remain major shareholders and retain management power
in the company."

The major shareholders are Jasmine International (23.07%),
Nippon Telegraph and Telephone Corp (18.01%), Loxley Plc
(12.75%) and Italian Thai Development Plc (10.63%). Other
shares are held by the Communications Authority and small
holders.

TT&T president Thongchat Hongladaromp also said that after
the debt restructuring, the four major shareholders would
still have more than a 50% stake and would maintain an
active role in policy-making.  That could be a problem for
would-be suitors, said an industry analyst who asked not to
be named. "No investors would be willing to pay such an
enormous amount of cash without being given management
power."

Shin had tried to hook up with TT&T earlier, the analyst
said, but backed off when it realised it could not obtain
management control. But Shin might now ease its stance
since it had to compete against CP and potentially foreign
investors seeking a piece of TT&T, he said.  Another
analyst said CP might be the preferred partner because it
had 2.6 million fixed lines in Bangkok. (Bangkok Post  06-
March-2000)


S U B S C R I P T I O N  I N F O R M A T I O N

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